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 811-05349

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 W. Murphy, Esq.
One New York Plaza	Dechert LLP
New York, New York 10004	1775 I Street, NW
	Washington, D.C. 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, 2008

ITEM 1.	REPORTS TO STOCKHOLDERS.
	The Semi-Annual Report to Stockholders is filed herewith.

Goldman Sachs Trust

Institutional  Liquid  Assets

4 Federal Portfolio

4 Money Market Portfolio

4 Prime Obligations Portfolio

4 Tax-Exempt California Portfolio

4 Tax-Exempt Diversified Portfolio

4 Tax-Exempt New York Portfolio

4 Treasury Instruments Portfolio

4 Treasury Obligations Portfolio

SEMI-ANNUAL REPORT

June 30, 2008

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

TABLE OF CONTENTS

Portfolio Overviews	1
Schedules of Investments	5
Financial Statements	42
Notes to Financial Statements	50
Financial Highlights	62
Other Information	70

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Taxable Portfolios*

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.

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.

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.

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.

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.

Tax-Exempt Portfolios*

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 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 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.

*  Past performance is no guarantee of future results. Yields will vary. An investment in any of the Institutional Liquid Assets (”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.

1

______________________________________________________________________________________________________________________________________________________
Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Summary of ILA Portfolios Institutional

Units/ Shares*

as of June 30, 2008

	Standardized			Standardized						Weighted
	7-Day			7-Day			30-Day			Avg.
	Current			Effective			Current			Maturity
ILA Portfolios	Yield			Yield			Yield			(days)
Federal		1.99	%		2.01	%		1.99	%		43
Money Market		2.23			2.25			2.20			41
Prime Obligations		2.21			2.23			2.13			43
Tax-Exempt California		1.15			1.16			1.19			34
Tax-Exempt Diversified		1.28			1.29			1.30			37
Tax-Exempt New York		1.24			1.24			1.23			32
Treasury Instruments		1.38			1.39			1.27			41
Treasury Obligations		1.64			1.65			1.70			12

*  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.

An investment in a money market mutual fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market mutual fund seeks to preserve the value of an investment at $1.00 per unit, it is possible to lose money by investing in a money market mutual fund.

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, 2008

Security Type				Money			Prime			Treasury			Treasury
(Percentage of Net Assets)	Federal			Market			Obligations			Instruments			Obligations
Bank Notes		—			—			1.4	%		—			—
Certificates of Deposit		—			—			1.9			—			—
Certificates of Deposit—Eurodollar		—			2.2	%		—			—			—
Certificates of Deposit—Yankeedollar		—			9.4			—			—			—
Commercial Paper & Corporate Obligations		—			27.2			37.5			—			—
Master Demand Notes		—			3.0			1.3			—			—
Medium-Term Notes		—			1.0			0.6			—			—
Repurchase Agreements		—			27.5			30.1			—			89.7	%
U.S. Government Agency Obligations		100.5	%		7.6			13.4			—			—
U.S. Treasury Obligations		—			—			—			102.3	%		5.4
Variable Rate Obligations		—			20.5			13.8			—			—

As of December 31, 2007

Security Type				Money			Prime			Treasury			Treasury
(Percentage of Net Assets)	Federal			Market			Obligations			Instruments			Obligations
Bank Notes		—			—			0.6	%		—			—
Certificates of Deposit		—			—			3.1			—			—
Certificates of Deposit—Eurodollar		—			0.4	%		—			—			—
Certificates of Deposit—Yankeedollar		—			12.8			—			—			—
Commercial Paper & Corporate Obligations		—			38.2			53.1			—			—
Master Demand Notes		—			1.1			0.7			—			—
Medium-Term Notes		—			—			0.1			—			—
Repurchase Agreements		—			24.4			21.7			—			73.4	%
U.S. Government Agency Obligations		99.7	%		1.1			1.9			—			—
U.S. Treasury Obligations		—			—			—			100.0	%		26.5
Variable Rate Obligations		—			21.6			18.7			—			—

†  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. Figures in the tables above may not sum to 100% due to the exclusion of other assets and liabilities.

3

Sector Allocations†

Tax-Exempt Portfolios

As of June 30, 2008

Security Type	Tax-Exempt			Tax-Exempt			Tax-Exempt
(Percentage of Net Assets)	California			Diversified			New York
Commercial Paper		12.2	%		13.8	%		10.1	%
General Obligation Bonds		0.2			3.6			2.4
Put Bonds		3.0			2.7			0.7
Revenue Anticipation Notes		—			0.2			3.6
Revenue Bonds		—			1.9			4.7
Tax and Revenue Anticipation Notes		6.0			1.7			2.5
Tax Anticipation Notes		—			3.5			—
Variable Rate Obligations		77.1			75.3			76.1

As of December 31, 2007

Security Type	Tax-Exempt			Tax-Exempt			Tax-Exempt
(Percentage of Net Assets)	California			Diversified			New York
Commercial Paper		12.2	%		11.6	%		13.5	%
General Obligation Bonds		—			0.8			2.9
Put Bonds		3.0			2.2			2.1
Revenue Anticipation Notes		1.8			1.6			—
Revenue Bonds		—			0.3			6.0
Tax and Revenue Anticipation Notes		7.1			1.9			3.4
Tax Anticipation Notes		—			5.3			1.6
Variable Rate Obligations		75.9			79.3			70.6

†  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. Figures in the tables above may not sum to 100% due to the exclusion of other assets and liabilities.

4

Schedule of Investments

ILA Federal Portfolio

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
U.S. Government Agency Obligations—100.5%
Federal Farm Credit Bank
$	42,000,000		1.950	%(a)		07/01/08	$	41,999,249
	72,000,000		1.960	(a)		07/01/08		71,998,358
	25,000,000		1.990	(a)		07/01/08		24,999,738
	25,000,000		2.060	(a)		07/01/08		25,000,000
	30,000,000		2.070	(a)		07/01/08		29,997,141
	65,000,000		2.080	(a)		07/01/08		65,000,000
	15,000,000		2.230	(a)		07/01/08		15,000,000
	20,000,000		2.319	(a)		07/01/08		19,998,374
	18,000,000		2.345	(a)(b)		07/01/08		18,000,000
	132,000,000		2.359	(a)		07/01/08		132,000,000
	28,000,000		2.276	(a)		07/16/08		27,973,859
	25,000,000		2.342	(a)		07/17/08		24,998,149
	15,000,000		2.770	(a)		07/23/08		15,000,000
	80,000,000		2.341	(a)		07/24/08		79,992,750
	3,000,000		2.849	(a)		09/03/08		3,000,000
	8,000,000		2.510	(a)		09/30/08		7,999,434
	3,632,000		2.625			02/04/09		3,635,981
	8,000,000		2.700			02/13/09		8,000,000
	10,000,000		2.375			02/19/09		9,996,881
Federal Home Loan Bank
	15,000,000		1.800			07/01/08		15,000,000
	9,000,000		1.970	(a)		07/01/08		8,998,834
	60,000,000		2.090	(a)		07/01/08		60,000,000
	85,000,000		2.240	(a)		07/01/08		85,000,000
	20,000,000		2.290	(a)		07/01/08		20,000,000
	10,000,000		2.300	(a)		07/01/08		10,000,000
	25,000,000		2.380	(a)		07/01/08		25,000,000
	10,000,000		2.080			07/02/08		9,999,422
	12,000,000		2.100			07/02/08		11,999,300
	5,000,000		2.125			07/02/08		4,999,705
	75,000,000		2.538	(a)		07/08/08		74,977,843
	4,000,000		3.780			07/09/08		3,996,640
	12,000,000		2.550	(a)		07/10/08		11,998,724
	12,300,000		3.680			07/11/08		12,287,427
	93,000,000		2.535	(a)		07/14/08		93,000,107
	57,100,000		2.050			07/16/08		57,051,227
	60,000,000		2.534	(a)		07/16/08		59,978,567
	40,000,000		2.060			07/18/08		39,961,089
	49,600,000		2.200			07/18/08		49,548,471
	5,100,000		2.040			07/23/08		5,093,642
	90,000,000		2.060			07/23/08		89,886,700
	22,900,000		2.150			07/23/08		22,869,912
	4,100,000		2.065			07/25/08		4,094,356
	30,000,000		2.070			07/25/08		29,958,600
	21,000,000		2.075			07/25/08		20,970,950
	30,000,000		2.402	(a)		07/28/08		29,979,548
	45,000,000		2.060			07/30/08		44,925,325
	600,000		2.000			08/01/08		598,967
	53,588,000		2.015			08/01/08		53,495,017
	10,000,000		2.010			08/06/08		9,979,900
	64,900,000		2.020			08/06/08		64,768,902
	1,900,000		2.030			08/08/08		1,895,929
	3,000,000		5.125			08/08/08		3,004,039
	100,000,000		2.596	(a)		08/11/08		100,000,000
	9,000,000		5.250			08/14/08		9,015,382
	15,000,000		2.589	(a)		08/15/08		15,001,241
	50,000,000		2.599	(a)		08/18/08		50,000,000
	10,000,000		2.135			08/22/08		9,969,161
	73,800,000		2.140			08/22/08		73,571,876
	55,000,000		2.518	(a)		08/22/08		55,008,793
	100,000,000		2.789	(a)		08/22/08		100,000,000
	20,000,000		2.423	(a)		08/27/08		20,005,251
	6,200,000		2.220			08/29/08		6,177,442
	1,900,000		2.230			08/29/08		1,893,056
	2,900,000		2.260			08/29/08		2,889,259
	45,000,000		2.543	(a)		09/05/08		45,012,229
	110,000,000		2.492	(a)		09/06/08		109,948,943
	50,000,000		2.461	(a)		09/10/08		50,000,000
	19,000,000		2.360			09/12/08		18,909,074
	90,000,000		2.608	(a)		09/15/08		89,944,285
	67,000,000		2.659	(a)		09/19/08		67,008,659
	35,000,000		2.475			09/24/08		34,795,469
	3,000,000		5.125			12/29/08		3,038,410
	12,000,000		5.250			01/14/09		12,176,747
	12,000,000		2.750			02/04/09		12,020,632
	21,000,000		2.200			04/03/09		20,984,121
	15,000,000		2.550			05/05/09		14,998,568
	12,000,000		2.500			05/07/09		11,993,915
	26,000,000		3.170			06/23/09		26,000,367
Total Investments—100.5%							$	2,620,271,937
Liabilities in Excess of Other   Assets—(0.5)%								(12,769,361	)
Net Assets—100.0%							$	2,607,502,576

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 the U.S. Treasury Bill Rate, London Interbank Offered Rate, Prime Lending Rate or Federal Funds Rate. Interest Rate disclosed is that which is in effect at June 30, 2008.
(b)	All or a portion represents a forward commitment.

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.

5

Schedule of Investments

ILA Money Market Portfolio

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Commercial Paper and Corporate Obligations—27.2%
Amstel Funding Corp.
$	5,000,000		2.920	%		09/15/08	$	4,969,178
Aspen Funding Corp.
	5,000,000		2.780			09/10/08		4,972,586
	5,000,000		2.800			09/16/08		4,970,056
Atlantis One Funding Corp.
	5,000,000		2.800			09/15/08		4,970,445
BA Credit Card Trust (Emerald)
	5,000,000		3.150			09/16/08		4,966,313
Caisse Depargne Et Prevoy
	6,000,000		2.810			09/22/08		5,961,128
Chariot Funding LLC
	5,000,000		2.760			09/22/08		4,968,183
Charta LLC
	10,000,000		2.680			08/14/08		9,967,244
Citibank Credit Card Issuance Trust (Dakota Corp.)
	10,000,000		3.150			08/07/08		9,967,625
Citigroup Funding, Inc.
	5,000,000		2.950			09/15/08		4,968,861
Danske Corp.
	5,000,000		2.760			09/17/08		4,970,100
Dexia Delaware LLC
	5,000,000		2.720			07/10/08		4,996,600
General Electric Capital Services, Inc.
	10,000,000		2.780			08/05/08		9,972,972
Intesa Funding LLC
	5,000,000		2.720			07/11/08		4,996,222
Kitty Hawk Funding Corp.
	10,000,000		2.570			07/25/08		9,982,867
LMA-Americas LLC
	5,000,000		2.700			08/18/08		4,982,000
San Paolo US Finance Corp.
	5,000,000		2.770			09/16/08		4,970,376
Sheffield Receivables Corp.
	5,200,000		2.810			07/21/08		5,191,882
Thames Asset Global Securitization, Inc.
	5,000,000		2.840			07/08/08		4,997,239
Thunder Bay Funding, Inc.
	10,000,000		2.650			08/15/08		9,966,875
Variable Funding Capital Corp.
	10,000,000		2.700			07/28/08		9,979,750
Total Commercial Paper and Corporate Obligations							$	135,688,502
Certificates of Deposit-Yankeedollar—9.4%
Bank of Scotland PLC
$	5,000,000		2.730	%		10/06/08	$	5,000,000
	5,000,000		2.950			11/17/08		5,000,000
Barclays Bank PLC
	5,000,000		4.430			07/07/08		5,000,000
	5,000,000		2.750			09/12/08		5,000,000
BNP Paribas SA
	5,000,000		2.820			11/28/08		5,000,000
Calyon
	5,000,000		3.020			10/27/08		5,000,000
	7,000,000		2.760			11/12/08		7,000,000
Dexia Bank Belgium SA
	5,000,000		2.640			08/28/08		5,000,040
Rabobank Nederland
	5,000,000		2.900			07/18/08		5,000,000
Total Certificates of Deposit-Yankeedollar							$	47,000,040
Certificates of Deposit-Eurodollar—2.2%
ABN Amro Bank NV
$	5,000,000		3.020	%		08/28/08	$	5,000,079
	6,000,000		2.850			11/10/08		6,000,217
Total Certificates of Deposit-Eurodollar							$	11,000,296
Master Demand Note—3.0%
Bank of America Securities LLC
$	15,000,000		2.880	%		11/03/08	$	15,000,000
U.S. Government Agency Obligations—7.6%
Federal Home Loan Bank
$	2,000,000		2.380	%(a)		07/01/08	$	2,000,000
	5,000,000		2.085	(a)		07/01/08		4,998,962
	1,000,000		2.402	(a)		07/28/08		999,318
	5,000,000		2.509	(a)		08/19/08		5,000,000
	3,000,000		2.492	(a)		09/06/08		2,998,608
	5,000,000		2.800			02/25/09		5,000,000
	4,000,000		3.125			06/19/09		3,998,356
Federal Home Loan Mortgage Corp.(a)
	10,000,000		2.463			07/21/08		10,000,000
Federal National Mortgage Association(a)
	3,000,000		2.230			07/01/08		2,999,648
Total U.S. Government Agency Obligations							$	37,994,892
Medium-Term Note—1.0%
Union Hamilton Reinsurance Co.
$	5,000,000		3.276	%		09/15/08	$	5,000,000
Variable Rate Obligations(a)—20.5%
ANZ National Bank Limited
$	7,000,000		2.916	%		09/10/08	$	7,000,000
Australia and New Zealand Banking Group Ltd.
	4,000,000		2.511			07/23/08		4,000,000
Bank of Ireland
	20,000,000		2.492			07/21/08		20,000,000
Barclays Bank PLC
	5,000,000		2.671			07/16/08		5,000,000

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

6

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Variable Rate Obligations(a) (continued)
Commonwealth Bank of Australia
$	2,000,000		2.501	%		07/24/08	$	2,000,000
Deutsche Bank AG
	5,000,000		2.910			07/04/08		5,000,000
Merrill Lynch & Co., Inc.
	10,000,000		2.536			07/07/08		10,000,000
National Australia Bank Ltd.
	5,000,000		2.882			09/06/08		5,000,000
New York Life Insurance Co.(b)
	5,000,000		2.951			09/30/08		5,000,000
Rabobank Nederland
	5,000,000		2.890			08/11/08		5,000,000
Royal Bank of Canada
	5,000,000		3.233			08/15/08		5,000,000
Skandinaviska Enskilda Banken AB
	10,000,000		2.458			07/09/08		10,000,000
Societe Generale
	15,000,000		2.459			07/02/08		15,000,000
Svenska Handelsbanken AB
	4,000,000		2.467			07/14/08		4,000,000
Total Variable Rate Obligations							$	102,000,000
Total Investments Before Repurchase Agreement							$	353,683,730
Repurchase Agreement(c)—27.5%
Joint Repurchase Agreement Account II
$	137,100,000		2.666	%		07/01/08	$	137,100,000
Maturity Value: $137,110,153
Total Investments—98.4%							$	490,783,730
Other Assets in Excess of Liabilities—1.6%								7,851,071
Net Assets—100.0%							$	498,634,801

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 the U.S. Treasury Bill Rate, London Interbank Offered Rate, Prime Lending Rate or Federal Funds Rate. Interest Rate disclosed is that which is in effect at June 30, 2008.
(b)	Security is not registered under the Securities Act of 1933, as amended. This securitiy has been determined to be illiquid by the Investment Adviser. At June 30, 2008, this security amounted to $5,000,000 or approximately 1.0% of net assets.
(c)	Unless noted, all repurchase agreements were entered into on June 30, 2008. Additional information on Joint Repurchase Agreement Account II appears on page 41.

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 Prime Obligations Portfolio

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Bank Notes—1.4%
Wells Fargo & Co.
$	6,023,500		3.552	%		05/01/09	$	6,026,043
Wells Fargo Bank, N.A.
	5,000,000		2.950			05/29/09		5,000,000
Total Bank Notes							$	11,026,043
Commercial Paper and Corporate Obligations—37.5%
Amstel Funding Corp.
$	9,932,000		2.850	%		07/08/08	$	9,926,496
	5,000,000		2.750			08/26/08		4,978,611
	6,000,000		2.920			09/15/08		5,963,013
Atlantic Asset Securitization Corp.
	5,000,000		2.680			07/09/08		4,997,022
	5,000,000		2.770			07/15/08		4,994,614
	5,000,000		2.590			08/21/08		4,981,654
Atlantis One Funding Corp.
	5,000,000		2.585			08/21/08		4,981,690
BA Credit Card Trust (Emerald)
	10,000,000		3.150			07/07/08		9,994,750
	6,000,000		3.150			09/16/08		5,959,575
Cancara Asset Securitization LLC
	9,000,000		2.800			07/09/08		8,994,400
Chariot Funding LLC
	7,745,000		2.760			09/22/08		7,695,716
	10,000,000		2.770			09/25/08		9,933,828
Charta LLC
	10,000,000		2.680			08/15/08		9,966,500
Citibank Credit Card Issuance Trust (Dakota Corp.)
	5,000,000		3.300			07/23/08		4,989,917
	5,000,000		3.150			08/07/08		4,983,812
	6,689,000		2.810			09/10/08		6,651,930
Citigroup Funding, Inc.
	5,000,000		2.830			08/06/08		4,985,850
	10,000,000		2.830			08/08/08		9,970,128
	5,000,000		2.760			08/25/08		4,978,917
	5,000,000		2.920			09/10/08		4,971,206
Gemini Securitization Corp.
	10,000,000		2.780			07/11/08		9,992,278
	5,000,000		2.800			09/17/08		4,969,667
General Electric Capital Services, Inc.
	5,000,000		2.870			08/04/08		4,986,447
	5,000,000		2.780			08/05/08		4,986,486
	10,000,000		2.600			11/03/08		9,909,722
JPMorgan Chase & Co.
	10,000,000		2.550			11/07/08		9,908,625
Kitty Hawk Funding Corp.
	6,150,000		2.780			09/16/08		6,113,431
LMA Americas LLC
	10,000,000		2.650			08/26/08		9,958,778
Newport Funding Corp.
	5,000,000		2.780			09/10/08		4,972,586
Old Line Funding Corp.
	8,780,000		2.770			08/04/08		8,757,030
Park Avenue Receivables Co. LLC
	5,000,000		2.750			09/18/08		4,969,826
	5,000,000		2.760			09/22/08		4,968,183
Salisbury Receivables Co. LLC
	5,000,000		2.830			09/08/08		4,972,879
Sheffield Receivables Corp.
	5,000,000		2.700			07/09/08		4,997,000
	10,000,000		2.810			07/21/08		9,984,389
Thames Asset Global Securitization, Inc.
	10,000,000		2.840			07/08/08		9,994,478
Thunder Bay Funding, Inc.
	6,882,000		2.770			08/15/08		6,858,171
Variable Funding Capital Corp.
	25,000,000		2.750			07/14/08		24,975,174
Windmill Funding Corp.
	5,000,000		2.720			07/09/08		4,996,978
Yorktown Capital LLC
	5,000,000		2.780			09/17/08		4,969,883
Total Commercial Paper and Corporate Obligations							$	291,141,640
Certificates of Deposit—1.9%
Bank of America N.A.
$	5,000,000		2.800	%		08/05/08	$	5,000,000
	5,000,000		2.540			09/26/08		5,000,000
	5,000,000		2.910			12/19/08		5,000,000
Total Certificates of Deposit							$	15,000,000
Master Demand Note—1.3%
Bank of America Securities LLC
$	10,000,000		2.880	%		11/03/08	$	10,000,000
Medium-Term Note—0.7%
Union Hamilton Reinsurance Co.
$	5,000,000		3.276	%		09/15/08	$	5,000,000
U.S. Government Agency Obligations—13.4%
Federal Home Loan Bank
$	3,000,000		2.380	%(a)		07/01/08	$	3,000,000
	30,000,000		2.090	(a)		07/01/08		30,000,000
	5,000,000		2.085	(a)		07/01/08		4,998,962
	2,000,000		2.402	(a)		07/28/08		1,998,637
	10,000,000		2.509	(a)		08/19/08		10,000,000
	5,000,000		2.492	(a)		09/06/08		4,997,679
	10,000,000		2.220			01/02/09		9,972,055
	5,000,000		2.760			02/11/09		5,000,000
	5,000,000		2.800			02/25/09		5,000,000
	7,000,000		3.125			06/19/09		6,997,122
	2,000,000		2.700			07/07/09		1,999,694

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

8

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
U.S. Government Agency Obligations (continued)
Federal Home Loan Mortgage Corp.(a)
$	15,000,000		2.463	%		07/21/08	$	15,000,000
Federal National Mortgage Association(a)
	5,000,000		2.230			07/01/08		4,999,414
Total U.S. Government Agency Obligations							$	103,963,563
Variable Rate Obligations(a)—13.8%
Allstate Life Global Funding
$	10,000,000		2.448	%		07/11/08	$	10,000,000
Bank of America N.A.
	5,000,000		3.208			07/03/08		5,000,000
	5,000,000		2.813			09/18/08		5,003,685
Denver Colorado City & County School District 01
	5,000,000		2.680			07/02/08		5,000,000
Eli Lilly & Co.
	5,000,000		3.077			11/17/08		5,000,000
General Electric Capital Corp.
	10,000,000		2.501			07/24/08		10,000,000
JPMorgan Chase & Co.
	5,000,000		2.724			07/03/08		5,000,112
	2,417,000		2.782			09/02/08		2,416,500
MassMutual Global Funding II LLC
	5,000,000		2.804			07/03/08		5,000,000
Merrill Lynch & Co., Inc.
	10,000,000		2.536			07/07/08		10,000,000
MetLife, Inc.(b)
	10,000,000		2.977			08/22/08		10,000,000
Metropolitan Life Global Funding I
	5,000,000		2.960			07/09/08		5,000,000
Morgan Stanley
	5,000,000		2.608			07/03/08		5,000,000
Procter & Gamble Co.
	5,000,000		2.789			08/19/08		5,000,000
Wachovia Asset Securitization, Inc.(b)
	10,099,671		2.633			07/25/08		10,099,671
Wells Fargo & Co.
	10,000,000		2.631			07/18/08		10,000,000
Total Variable Rate Obligations							$	107,519,968
Total Investments Before Repurchase Agreement							$	543,651,214
Repurchase Agreement(c)—30.0%
Joint Repurchase Agreement Account II
$	233,600,000		2.666	%		07/01/08	$	233,600,000
Maturity Value: $233,617,299
Total Investments—100.0%							$	777,251,214
Other Assets in Excess of Liabilities—0.0%								195,825
Net Assets—100.0%							$	777,447,039

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 the U.S. Treasury Bill Rate, London Interbank Offered Rate, Prime Lending Rate or Federal Funds Rate. Interest Rate disclosed is that which is in effect at June 30, 2008.
(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, 2008, these securities amounted to $20,099,671 or approximately 2.6% of net assets.
(c)	Unless noted, all repurchase agreements were entered into on June 30, 2008. Additional information on Joint Repurchase Agreement Account II appears on page 41.

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 Tax-Exempt California Portfolio

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
California—96.9%
Bay Area Toll Authority California Toll Bridge VRDN RB Eagle Series 2007-0053 A (Landesbank Hessen Thueringen SPA) (A-1)(a)
$	3,465,000		1.490	%		07/03/08	$	3,465,000
Bay Area Toll Authority California Toll Bridge VRDN RB Floaters Series 2008-2523 (Morgan Stanley Municipal Products) (A-1+)(a)
	5,598,500		1.520			07/03/08		5,598,500
Bay Area Toll Authority California Toll Bridge VRDN RB Putters Series 2008-2866 (JPMorgan Chase & Co. SPA) (A-1+)(a)
	6,825,000		1.550			07/03/08		6,825,000
Bay Area Toll Authority California Toll Bridge VRDN RB ROCS RR II R-11453 Series 2008 (Citibank N.A. SPA) (A-1+)(a)
	2,000,000		1.500			07/03/08		2,000,000
Bay Area Toll Authority California Toll Bridge VRDN RB ROCS RR II R-12016 Series 2007 (Citibank N.A. SPA) (A-1+/ VMIG1)(a)
	4,000,000		1.500			07/03/08		4,000,000
California Communities Note Program TRANS Series 2008 A-3 (SP-1+/ MIG1)(b)
	3,000,000		3.000			06/30/09		3,040,020
California Educational Facilities Authority Austin Trust VRDN RB Certificates Series 2007-1012 (Bank of America N.A. SPA) (A-1+)(a)
	6,665,000		1.560			07/03/08		6,665,000
California Educational Facilities Authority VRDN RB for Stanford University Series 1997 L-5 (A-1+/ VMIG1)
	900,000		1.150			07/02/08		900,000
California Educational Facilities Authority VRDN RB for University of Southern California Series 2005-1126 (Morgan Stanley SPA) (VMIG1)(a)
	6,770,000		1.520			07/03/08		6,770,000
California Educational Facilities Authority VRDN RB Putters Series 2008-2937Z (JPMorgan Chase & Co. SPA) (VMIG1)(a)
	7,495,000		1.800			07/03/08		7,495,000
California Educational Facilities Authority VRDN RB Putters Series 2008-2953 (JPMorgan Chase & Co. SPA) (VMIG1)(a)
	3,675,000		1.550			07/03/08		3,675,000
California Educational Facilities Authority VRDN RB ROCS-RR-II R-11064 Series 2007 (Citibank N.A. SPA) (A-1+)(a)
	10,500,000		1.500			07/03/08		10,500,000
California Educational Facilities Authority VRDN RB Series 2001-487 (Morgan Stanley SPA) (A-1) (a)
	2,000,000		1.520			07/03/08		2,000,000
California Health Facilities Financing Authority VRDN RB Floaters Series 2008-2491 (Morgan Stanley Municipal Products) (A-1+)(a)
	2,350,000		1.570			07/03/08		2,350,000
California Health Facilities Financing Authority VRDN RB for Kaiser Permanente Series 2006 C (A-1)
	1,800,000		1.330			07/02/08		1,800,000
California Health Facilities Financing Authority VRDN RB for Scripps Health Series 2001 A (JPMorgan Chase & Co. LOC) (A-1+/ VMIG1)
	3,100,000		1.280			07/02/08		3,100,000
California Health Facilities Financing Authority VRDN RB for Stanford Hospital Series 2008 B1 (A-1/ VMIG1)
	10,000,000		1.400			07/02/08		10,000,000
California Health Facilities Financing Authority VRDN RB for Sutter Health Floaters Series 2008-2825 (Morgan Stanley Municipal Products) (A-1)(a)
	3,000,000		1.520			07/03/08		3,000,000
California Health Facilities Financing Authority VRDN RB for Sutter Health Putters Series 2008-2828 (JPMorgan Chase & Co. SPA) (VMIG1)(a)
	5,235,000		1.550			07/03/08		5,235,000
California Health Facilities Financing Authority VRDN RB Series 2007-1754 (Morgan Stanley SPA) (VMIG1)(a)
	3,600,000		1.520			07/03/08		3,600,000
California Health Facilities Financing Authority VRDN RB Series 2007-1858 (Wells Fargo Bank N.A. SPA) (VMIG1)(a)
	4,203,500		1.520			07/03/08		4,203,500
California Infrastructure & Economic Development Bank VRDN RB for J Paul Getty Trust Series 2003 D (A-1+/ VMIG1)
	2,900,000		1.450			07/01/08		2,900,000
California Infrastructure & Economic Development Bank VRDN RB for Los Angeles Museum of Natural History Series 2008 B (Bank of New York LOC) (A-1+/ VMIG1)
	2,700,000		1.450			07/01/08		2,700,000
California Infrastructure & Economic Development Bank VRDN RB Refunding for J Paul Getty Trust Series 2008 A2 RMKT 03/28/08 (A-1+/ VMIG1)
	10,000,000		1.700			04/01/09		10,000,000
California Municipal Finance Authority VRDN PCRB Refunding for Chevron USA, Inc. Project Series 2005 (A-1+/ P-1)
	2,850,000		2.300			07/01/08		2,850,000
California State Department of Water Resources Power Supply VRDN RB Putters Series 2008-2665 (FSA) (JPMorgan Chase & Co. SPA) (VMIG1)(a)
	3,505,000		1.580			07/03/08		3,505,000
California State Department of Water Resources Power Supply VRDN RB ROCS RR II R-8087 Series 2008 (Citigroup, Inc. SPA) (A-1+)(a)
	5,000,000		1.500			07/03/08		5,000,000
California State Department of Water Resources Power Supply VRDN RB Series 2002 B-1 (Bank of New York LOC and California State Teachers Retirement LOC) (A-1+/ VMIG1)
	2,500,000		1.450			07/01/08		2,500,000
California State Department of Water Resources Power Supply VRDN RB Series 2002 B-2 (BNP Paribas LOC) (A-1+/ VMIG1)
	5,250,000		2.850			07/01/08		5,250,000

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

10

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
California (continued)
California State Department of Water Resources Power Supply VRDN RB Series 2002 B-6 (State Street Corp. LOC) (A-1+/ VMIG1)
$	1,400,000		1.600	%		07/01/08	$	1,400,000
California State Department of Water Resources Power Supply VRDN RB Series 2002 C-14 (Westdeutsche Landesbank LOC) (A-1+/ VMIG1)
	635,000		1.350			07/03/08		635,000
California State Department of Water Resources Power Supply VRDN RB Subseries 2005 F-1 (Lloyds TSB Bank PLC LOC) (A-1+/ VMIG1)
	500,000		1.600			07/01/08		500,000
California State Department of Water Resources Power Supply VRDN RB Subseries 2005 G-7 (FSA) (Societe Generale SPA) (A-1+/ VMIG1)
	1,000,000		1.650			07/03/08		1,000,000
California State Economic Recovery GO Series 2004 A (AA-/Aa3/AA+)
	1,500,000		5.000			01/01/09		1,517,728
California State GO VRDN Floaters Series 2007-2178 (Wells Fargo & Co. SPA) (A-1+)(a)
	1,698,500		1.570			07/03/08		1,698,500
California State GO VRDN Series 2003 C-1 (Bank of America N.A., Bank of Nova Scotia and Landesbank Hessen-Thueringen LOC) (A-1+/ VMIG1)
	3,790,000		1.320			07/03/08		3,790,000
California State University VRDN RB Floaters Series 2008-2337 (FSA) (Morgan Stanley Municipal Products) (A-1)(a)
	2,148,500		1.620			07/03/08		2,148,500
California State University VRDN RB MERLOTs Series 2008-D105 (FSA) (Wachovia Bank N.A. SPA) (A-1+)(a)
	4,000,000		1.590			07/02/08		4,000,000
California Statewide Communities Development Authority VRDN RB for Adventist Health West Series 2007 A RMKT 05/21/08 (Wells Fargo Bank N.A. SPA) (A-1+)
	7,000,000		1.330			07/02/08		7,000,000
California Statewide Communities Development Authority VRDN RB for John Muir Health Seires 2008 B (UBS AG LOC) (A-1+/ VMIG1)
	1,800,000		1.500			07/03/08		1,800,000
California Statewide Communities Development Authority VRDN RB for Kaiser Permanente Series 2003 A (A-1)
	4,500,000		1.330			07/02/08		4,500,000
California Statewide Communities Development Authority VRDN RB for Kaiser Permanente Series 2003 B (A-1)
	3,000,000		1.330			07/02/08		3,000,000
California Statewide Communities Development Authority VRDN RB for Kaiser Permanente Series 2003 D (A-1)
	8,600,000		1.230			07/02/08		8,600,000
California Statewide Communities Development Authority VRDN RB for Kaiser Permanente Series 2004 M (A-1)
	4,900,000		1.330			07/02/08		4,900,000
California Statewide Communities Development Authority VRDN RB for Kaiser Permanente Series 2008 C (A-1)
	5,000,000		1.950			05/28/09		5,000,000
California Statewide Communities Development Authority VRDN RB for St. Joseph Health System Series 2008 A (A-1+/ VMIG1)
	15,900,000		1.250			07/03/08		15,900,000
California Statewide Communities Development Authority VRDN RB for Sutter Health Floaters Series 2008-2708 (Morgan Stanley Municipal Products)(A-1+)(a)
	5,700,000		1.520			07/03/08		5,700,000
California Statewide Communities Development Authority VRDN RB Series 2004 J (JPMorgan Chase & Co. SPA) (A-1)
	1,800,000		1.330			07/02/08		1,800,000
Central Basin Municipal Water District Project VRDN RB COPS Series 2008 B (Allied Irish Bank PLC LOC) (A-1/ VMIG1)
	3,400,000		1.280			07/02/08		3,400,000
Contra Costa Water District CP Series 2008-A (State Street Bank and California State Teachers Retirement) (A-1+)
	3,500,000		1.650			08/11/08		3,500,000
Contra Costa Water District VRDN RB ROCS RR II R-11410 Series 2008 (FSA) (Citibank N.A. SPA) (A-1+)(a)
	2,600,000		1.560			07/03/08		2,600,000
Desert California Community College District GO VRDN Floaters Series 2008-2764X (FSA) (Morgan Stanley Municipal Products) (A-1+)(a)
	2,500,000		1.620			07/03/08		2,500,000
East Bay Municipal Utility District CP Series 2008 (JPMorgan Chase & Co. SPA) (P-1/ A-1+)
	6,800,000		1.350			07/08/08		6,800,000
Eastern Municipal Water District Water & Sewer VRDN COPS Series 2008 A (Wells Fargo Bank N.A. SPA) (A-1+/ VMIG1)
	8,500,000		1.500			07/03/08		8,500,000
Eastern Municipal Water District Water & Sewer VRDN RB Series 2008 B (Wells Fargo Bank N.A. SPA) (A-1+/ VMIG1)
	10,600,000		1.500			07/03/08		10,600,000
Fresno California VRDN RB for Trinity Health Credit Series 2000 C (Landesbank Hessen-Thueringen SPA) (A-1+/ VMIG1)
	500,000		1.400			07/03/08		500,000
Fresno County TRANS Series 2008 (SP-1+)(b)
	5,000,000		3.000			06/30/09		5,067,200
Glendale California VRDN COPS for Police Building Project Series 2000 (JPMorgan Chase & Co. SPA) (A-1+/ VMIG1)
	8,400,000		1.280			07/03/08		8,400,000
Grossmont-Cuyamaca California Community College District GO VRDN ROCS RR II R-3083 Series 2008 (Citigroup Financial Products) (A-1+)(a)
	3,485,000		1.530			07/03/08		3,485,000

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

11

Schedule of Investments

ILA Tax-Exempt California Portfolio (continued)

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
California (continued)
Grossmont-Cuyamaca California Community College District GO VRDN ROCS-RR-II R-8098 Series 2008 (Citigroup Financial Products) (A-1+)(a)
$	1,000,000		1.530	%		07/03/08	$	1,000,000
Long Beach California Housing Authority MF Hsg. VRDN RB Refunding for Channel Point Apartments Series 1998 (FNMA LOC) (A-1+)
	1,000,000		1.390			07/03/08		1,000,000
Los Angeles Community Redevelopment Agency MF Hsg. VRDN RB Series 1985 RMKT-08/01/05 (FNMA LOC) (VMIG1)
	5,000,000		1.250			07/02/08		5,000,000
Los Angeles County Housing Authority MF Hsg. VRDN RB Refunding for Malibu Meadows Project Series 1998 B (FNMA LOC) (A-1+)
	4,661,000		1.310			07/03/08		4,661,000
Los Angeles County Housing Authority MF Hsg. VRDN Refunding RB for Malibu Meadows II Series 1998 C (FNMA LOC) (A-1+)
	4,059,000		1.310			07/03/08		4,059,000
Los Angeles County TRANS Series 2008 A (SP-1+/ MIG1)(b)
	8,000,000		3.000			06/30/09		8,111,520
Los Angeles Department of Water & Power Systems Revenue CP Series 2008 (Banco Bilbao) (MIG1/ SP-1+)
	4,000,000		1.420			09/05/08		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		1.550			07/03/08		3,200,000
Los Angeles Department of Water & Power VRDN RB for Power System Subseries 2002 A-4 (Fortis Bank SPA, Lloyds TSB Bank PLC SPA and National Australia Bank SPA) (A-1+/ VMIG1)(b)
	1,500,000		1.300			07/03/08		1,500,000
Los Angeles Department of Water & Power VRDN RB for Power System Subseries 2002 A-5 (Fortis Bank SPA, Lloyd’s TSB Bank PLC SPA and National Australia Bank SPA) (A-1+/ VMIG1)
	3,600,000		1.230			07/03/08		3,600,000
Los Angeles Department of Water & Power VRDN RB for Power System Subseries 2002 A-6 (Fortis Bank SPA, Lloyds TSB Bank PLC SPA and National Australia Bank SPA) (A-1+/ VMIG1)
	4,820,000		1.500			07/03/08		4,820,000
Los Angeles Department of Water & Power VRDN RB Putters Series 2006-1272 (FSA) (JPMorgan Chase & Co. SPA) (A-1+)(a)
	1,495,000		1.580			07/03/08		1,495,000
Los Angeles Department of Water & Power VRDN RB Series 2005-1103 (Morgan Stanley SPA) (VMIG1) (a)
	3,275,000		1.520			07/03/08		3,275,000
Los Angeles Department of Water & Power VRDN RB Subseries 2001 B-5 (Royal Bank of Canada SPA, California Teachers Retirement SPA and California Public Employees Retirement System SPA) (A-1+/ VMIG1)
	1,300,000		1.230			07/03/08		1,300,000
Los Angeles Department of Water & Power VRDN RB Subseries 2002 A-3 (Fortis Bank, Lloyds TSB Bank and National Australia Bank SPA) (A-1+/ VMIG1)(b)
	5,275,000		1.300			07/03/08		5,275,000
Los Angeles Department of Water & Power VRDN RB Subseries 2002 A-7 (Fortis Bank SPA, Lloyds TSB Bank PLC SPA and National Australia Bank SPA) (A-1+/ VMIG1)(b)
	2,675,000		1.300			07/03/08		2,675,000
Los Angeles Municipal Improvement Corp. CP Series 2007 (Bank of America LOC) (A-1+/ P-1)
	3,500,000		1.250			08/07/08		3,500,000
Los Angeles Municipal Improvement Corp. CP Series 2008 (Bank of America LOC) (A-1+/ P-1)
	1,000,000		1.850			07/16/08		1,000,000
	2,000,000		1.800			08/07/08		2,000,000
	1,000,000		1.850			08/07/08		1,000,000
Los Angeles Unified School District GO VRDN Floater Series 2008-2592 (FSA) (Morgan Stanley Municipal Products) (A-1)(a)
	3,400,000		1.620			07/03/08		3,400,000
Los Angeles Unified School District GO VRDN Putters Series 2008-2748 (FSA) (JPMorgan Chase & Co.) (A-1+)(a)
	4,995,000		1.580			07/03/08		4,995,000
Los Angeles Wastewater Systems CP Series 2008 (Westdeutsche Landesbank AG, State Street Bank and California State Teachers Retirement) (A-1+/ P-1)
	10,000,000		1.350			07/09/08		10,000,000
Los Angeles Wastewater Systems VRDN RB ROCS RR-II R-10270 Series 2007 (FSA) (Dexia Credit Local SPA) (A-1+/ VMIG1)(a)
	1,870,000		1.540			07/03/08		1,870,000
Manteca Redevelopment Agency Tax Allocation VRDN RB SubAmended Merged Project Series 2005 RMKT 05/13/08 (State Street Bank and Trust Co. LOC) (A-1+)
	2,000,000		2.250			07/01/08		2,000,000
Metropolitan Water District Southern California Waterworks VRDN RB Authorization Series 1998 B (Landesbank Hessen-Thueringen SPA) (A-1+/ VMIG1)
	700,000		1.300			07/03/08		700,000
Metropolitan Water District Southern California Waterworks VRDN RB Eagle Series 2007-0044 A (Bayerische Landesbank SPA) (A-1)(a)
	4,000,000		1.490			07/03/08		4,000,000
Metropolitan Water District Southern California Waterworks VRDN RB Floaters Series 2008-2522 (Morgan Stanley Municipal Products) (A-1)(a)
	3,025,000		1.520			07/03/08		3,025,000

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

12

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
California (continued)
Metropolitan Water District Southern California Waterworks VRDN RB Refunding Series 2002 A (Landesbank Baden-Wurttemberg SPA) (A-1+/ VMIG1)
$	600,000		1.280	%		07/03/08	$	600,000
Metropolitan Water District Southern California Waterworks VRDN RB Refunding Series 2004 A-1 (JP Morgan Chase & Co. SPA) (A-1+/ VMIG1)
	1,500,000		1.230			07/03/08		1,500,000
Metropolitan Water District Southern California Waterworks VRDN RB Refunding Series 2008 A-1 (Bank of America N.A. SPA) (A-1+/ VMIG1)
	5,000,000		1.200			07/03/08		5,000,000
Metropolitan Water District Southern California Waterworks VRDN RB Refunding Series 2008 A-2 (A-1/ VMIG1)
	15,000		1.220			07/03/08		15,000
Metropolitan Water District Southern California Waterworks VRDN RB ROCS RR-II R-12009 Series 2007 (Citigroup, Inc. SPA) (A-1+/ VMIG1)(a)
	4,000,000		1.500			07/03/08		4,000,000
Metropolitan Water District Southern California Waterworks VRDN RB ROCS-RR-II R-11301 Series 2007 (Citibank N.A. SPA) (A-1+)(a)
	1,000,000		1.500			07/03/08		1,000,000
Metropolitan Water District Southern California Waterworks VRDN RB Series 1999 B (Bank of America, N.A. SPA) (A-1+/ VMIG1)
	1,500,000		1.300			07/03/08		1,500,000
Metropolitan Water District Southern California Waterworks VRDN RB Series 2000 B-1 (Westdeutsche Landesbank SPA) (A-1+/ VMIG1)
	7,200,000		1.600			07/01/08		7,200,000
Metropolitan Water District Southern California Waterworks VRDN RB Series 2000 B-4 (National Australia Bank SPA) (A-1+/ VMIG1)
	2,000,000		1.260			07/02/08		2,000,000
Metropolitan Water District Southern California Waterworks VRDN Refunding Series 2003 C-2 (Dexia Credit Local SPA) (A-1+/ VMIG1)
	1,365,000		1.230			07/03/08		1,365,000
Newport Beach California VRDN RB Refunding for Hoag Memorial Hospital Series 2008 A (VMIG1)
	5,000,000		1.800			06/01/09		5,000,000
Orange County Apartment Development VRDN RB for Park Ridge Villas Series 1998 (FNMA LOC) (A-1+)
	2,830,000		1.310			07/03/08		2,830,000
Orange County Apartment Development VRDN RB for Seaside Meadow Series 1984 C (FHLMC LOC) (VMIG1)
	4,500,000		1.300			07/03/08		4,500,000
Orange County Apartment Development VRDN RB Refunding for Riverbend Apartments Series 1999 B (FHLMC LOC) (VMIG1)
	9,550,000		1.310			07/03/08		9,550,000
Orange County Sanitation District VRDN COPS Putters Series 2008-2529Z (FSA) (JPMorgan Chase Bank SPA) (A-1+)(a)
	1,080,000		1.580	%		07/03/08		1,080,000
Orange County Sanitation District VRDN COPS ROCS RR-II R-11304 Series 2007 (FSA) (Citibank N.A. SPA) (A-1+)(a)
	3,000,000		1.550			07/03/08		3,000,000
Orange County Water District VRDN COPS Series 2003 A (Lloyds TSB Bank PLC SPA) (A-1+/ VMIG1)
	950,000		1.280			07/02/08		950,000
Orange County Water District VRDN COPS Series 2008 A (Landesbank Baden-Wurttemberg SPA) (VMIG1)
	4,000,000		1.280			07/02/08		4,000,000
Pasadena California VRDN COPS Series 2008 A (Bank of America N.A. LOC) (A-1+)
	5,000,000		1.350			07/03/08		5,000,000
Peralta Community College District GO VRDN Putters Series 2008-2682 (FSA) (JPMorgan Chase & Co. SPA) (F1+)(a)
	2,000,000		1.580			07/03/08		2,000,000
Rancho Santiago Community College District VRDN MERLOTs Series B24 (FSA) (Wachovia Bank N.A. SPA) (A-1+)(a)
	4,990,000		1.740			07/02/08		4,990,000
Riverside Unified School District GO VRDN ROCS RR II R-9224 Series 2008 (Citigroup Financial Products) (A-1+)(a)
	4,200,000		1.530			07/03/08		4,200,000
Riverside VRDN COPS Refunding Series 2008 (Bank of America N.A. LOC) (A-1+)
	6,300,000		1.350			07/03/08		6,300,000
Sacramento County Sanitation District Financing Authority VRDN RB MERLOTs Series 2000-SSS (Wachovia Bank N.A. SPA) (VMIG1)(a)
	3,910,000		1.590			07/02/08		3,910,000
Sacramento County Sanitation District Financing Authority VRDN RB Sublien for Sacramento Regional Series 2000 C (Bank of America N.A. LOC) (A-1+/ VMIG1)
	500,000		1.350			07/02/08		500,000
Sacramento County Sanitation District Financing Authority VRDN RB Sublien Series 2008 A (Bank of America N.A. LOC) (A-1+/ VMIG1)
	16,000,000		2.300			07/01/08		16,000,000
Sacramento County Suburban Water District VRDN COPS Refunding Series 2008 A-2 (Allied Irish Bank PLC LOC) (A-1/ VMIG1)
	3,000,000		1.280			07/02/08		3,000,000
Sacramento County VRDN COPS for Weekly Administration Center & Courthouse Project Series 1990 (Bayerische Landesbank LOC) (A-1+/ VMIG1)
	4,855,000		1.320			07/03/08		4,855,000
San Bernadino County VRDN RB Refunding for Evergreen Apartments Series 1999 A (FNMA LOC) (A-1+)
	16,600,000		1.310			07/03/08		16,600,000

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

13

Schedule of Investments

ILA Tax-Exempt California Portfolio (continued)

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
California (continued)
San Bernadino County VRDN RB Series 2008 (UBS AG LOC) (A-1+/ VMIG1)
$	5,500,000		1.500	%		07/03/08	$	5,500,000
San Diego Community College District GO VRDN MERLOTs Series 2008 D75 (FSA) (Wachovia Bank N.A. SPA) (A-1+)(a)
	7,700,000		1.590			07/02/08		7,700,000
San Diego County Regional Transportation Commission Sales Tax VRDN RB Limited Tax Series 2008 A (JPMorgan Chase & Co. SPA) (A-1+/ VMIG1)
	6,700,000		1.250			07/03/08		6,700,000
San Diego County Regional Transportation Commission Sales Tax VRDN RB Limited Tax Series 2008 C (Dexia Credit Local SPA) (A-1+/ VMIG1)
	2,600,000		1.230			07/03/08		2,600,000
San Diego County Regional Transportation Commission Sales Tax VRDN RB Limited Tax Series 2008 D (Dexia Credit Local SPA) (A-1+/ VMIG1)
	2,500,000		1.500			07/03/08		2,500,000
San Diego County Water Authority CP Series 2008 (Bayerische Landesbank SPA) (P-1/ A-1)
	15,000,000		1.300			07/03/08		15,000,000
	2,000,000		0.950			08/06/08		2,000,000
San Diego County Water Authority RB CP Series 2006 2 (BNP Paribas) (A-1+/ P-1)
	3,000,000		1.620			12/01/08		3,000,000
San Diego Unified School District GO TRANS Series 2006-1499 (FSA) (Morgan Stanley SPA) (A-1)(a)
	3,500,000		1.570			07/03/08		3,500,000
San Diego Unified School District GO TRANS Series 2008 (SP-1+/ MIG1)(b)
	5,350,000		3.000			07/01/09		5,422,118
San Francisco Bay Area Rapid Transit District GO VRDN Floater Series 2008-2665 (Morgan Stanley SPA) (A-1)(a)
	1,800,000		1.520			07/03/08		1,800,000
San Francisco Bay Area Rapid Transit District GO VRDN ROCS RR-II R-11251 (Citibank N.A. SPA) (A-1+)(a)
	2,000,000		1.500			07/03/08		2,000,000
San Francisco Bay Area Rapid Transit District GO VRDN ROCS RR-II R-11285 Series 2007 (Citibank N.A. SPA) (A-1+)(a)
	6,690,000		1.500			07/03/08		6,690,000
San Francisco Bay Area Rapid Transit District GO VRDN ROCS RR-II R-12222 Series 2007 (Citibank N.A. SPA) (A-1+/ VMIG1)(a)
	4,950,000		1.500			07/03/08		4,950,000
San Francisco Bay Area Rapid Transit District GO VRDN ROCS RR-II R-12223 Series 2007 (Citibank N.A. SPA) (A-1+/ VMIG1)(a)
	3,600,000		1.500			07/03/08		3,600,000
San Francisco Bay Area Rapid Transportation District GO VRDN Eagle Series 2007-0100 A (Landesbank Hessen-Wurttemberg SPA) (A-1)(a)
	9,900,000		1.490			07/03/08		9,900,000
San Francisco City & County Unified School District GO VRDN Floaters Series 2008-2377 (FSA) (Morgan Stanley Municipal Products) (A-1)(a)
	1,900,000		1.620			07/03/08		1,900,000
San Francisco City & County Unified School District GO VRDN MERLOTs Series 2008 D24 (FSA) (Wachovia Bank N.A. SPA) (A-1+)(a)
	1,200,000		1.590			07/02/08		1,200,000
San Francisco County Transportation Authority CP Series 2008 A (Landesbank Hessen-Thueringen SPA) (A-1+/ P-1)
	5,400,000		1.550			09/02/08		5,400,000
	12,400,000		1.550			09/04/08		12,400,000
San Jose Unified School District Santa Clara County GO VRDN Floater Series 2008-2674 (Morgan Stanley Municipal Products) (A-1+)(a)
	11,978,000		1.520			07/03/08		11,978,000
San Mateo County Community College District GO VRDN Floaters Series 2008-2673 (Morgan Stanley Municipal Products) (A-1)(a)
	8,405,000		1.520			07/03/08		8,405,000
San Mateo County Community College District GO VRDN ROCS RR-II-R-12120 Series 2007 (Citibank N.A. SPA) (A-1+/ VMIG1)(a)
	5,000,000		1.500			07/03/08		5,000,000
Santa Clara County Financing Authority Lease VRDN RB Refunding for Muliple Facilities Projects Series 2008 M (Bank of America N.A. LOC) (A-1+/ VMIG1)
	5,000,000		1.350			07/02/08		5,000,000
Sonoma County GO TRANS Series 2007 (SP-1+)
	3,000,000		4.000			10/17/08		3,005,992
University of California Regents CP Series 2008 (A-1+/ P-1)
	10,000,000		1.250			07/08/08		10,000,000
University of California VRDN RB Floaters Series 2005-1198 (Morgan Stanley SPA) (A-1+)(a)
	1,600,000		1.520			07/03/08		1,600,000
University of California VRDN RB P-Float Series 2005-2984 (FSA) (KBC Bank N.V. SPA) (F1+)(a)
	460,000		1.530			07/03/08		460,000
University of California VRDN RB Putters Series 2008-2475 (JPMorgan & Chase Co. SPA) (VMIG1) (a)
	2,200,000		1.550			07/03/08		2,200,000
University of California VRDN RB Putters Series 2008-2649Z (JPMorgan Chase Bank SPA) (VMIG1)(a)
	1,900,000		1.550			07/03/08		1,900,000
Ventura County TRANS Series 2008 (SP-1+/ MIG1)(b)
	4,380,000		3.500			07/01/09		4,461,906
Yosemite Community College District GO VRDN ROCS RR II R-12225 Series 2008 (Citibank N.A.) (A-1+)(a)
	1,500,000		1.550			07/03/08		1,500,000
							$	635,348,484

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

14

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Puerto Rico—1.6%
Commonwealth of Puerto Rico TRANS Series 2007 (Bank of Nova Scotia, BNP Paribas, Dexia Credit Local, Fortis Bank, Banco Bilbao, KBC Bank N.V. and Banco Santander Central Hispano LOC) (SP-1+/ MIG1)
$	10,500,000		4.250	%		07/30/08	$	10,506,929
Total Investments—98.5%							$	645,855,413
Other Assets in Excess of Liabilities—1.5%								10,096,125
Net Assets—100.0%							$	655,951,538

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, 2008, these securities amounted to $234,742,000 or approximately 35.8% of net assets.
(b)	All or a 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:

COPS	—	Certificates of Participation
CP	—	Commercial Paper
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
MERLOTs	—	Municipal Exempt Receipts Liquidity Optional Tenders
MF Hsg.	—	Multi-Family Housing
PCRB	—	Pollution Control Revenue Bond
RB	—	Revenue Bond
RMKT	—	Remarketed
ROCS	—	Reset Option Certificates
RR	—	Revenue Refunding
SPA	—	Stand-by Purchase Agreement
TRANS	—	Tax Revenue Anticipation Notes
VRDN	—	Variable Rate Demand Notes

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

15

Schedule of Investments

ILA Tax-Exempt Diversified Portfolio

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Alabama—1.9%
Columbia IDB VRDN PCRB Refunding for Alabama Power Co. Project Series 1996 A (VMIG1)
$	10,200,000		1.700	%		07/01/08	$	10,200,000
Columbia IDB VRDN PCRB Refunding for Alabama Power Co. Project Series 1999 B (A-1/ VMIG1)
	6,500,000		1.700			07/01/08		6,500,000
Mobile City IDB VRDN PCRB for Alabama Power Co. Project Series 1993 A (A-1/ VMIG1)
	4,600,000		1.610			07/03/08		4,600,000
							$	21,300,000
Alaska—0.3%
Alaska State Housing Finance Corp. VRDN RB Housing Development Series 2000 B (A-1+/ VMIG1)
$	2,880,000		1.300	%		07/02/08	$	2,880,000
Arizona—1.8%
Arizona Health Facilities Authority VRDN RB for Catholic Health Care West Series 2008 A (Bank of America N.A. LOC) (A-1+/ VMIG1)
$	2,000,000		1.550	%		07/02/08	$	2,000,000
Arizona School District TANS Financing Program COPS Series 2007 (SP-1+/ MIG1)
	1,500,000		4.500			07/30/08		1,500,989
Arizona State Transportation Board VRDN RB Floaters Series 2008-2545 (Morgan Stanley SPA) (A-1) (a)
	4,190,000		1.550			07/03/08		4,190,000
Arizona Water Infrastructure Finance Authority VRDN RB Putters Series 2008-2745 (JPMorgan Chase & Co. SPA) (VMIG1)(a)
	1,000,000		1.600			07/03/08		1,000,000
Banner Health Puttable Floating Option Tax-Exempt Receipts VRDN RB P-Floats-PT-4511 Series 2008 (Well Fargo Bank N.A. SPA) (A-1+)(a)
	1,500,000		1.570			07/03/08		1,500,000
Gilbert Arizona GO Bonds Projects of 2006 & 2007 Series 2008 (AA/ Aa2)(b)
	1,000,000		3.500			07/01/09		1,016,600
Salt River Project Agricultural Improvement & Power District Electric Systems Revenue RB Refunding Series 2002 D (AA/Aa1)
	5,000,000		5.000			01/01/09		5,068,065
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		1.550			07/03/08		1,500,000
Salt River Project Agricultural Improvement & Power District Electric Systems VRDN RB Floaters Series 2008-2799 (Morgan Stanley Municipal Products SPA) (A-1+)(a)
	3,000,000		1.550			07/03/08		3,000,000
							$	20,775,654
California—0.9%
California Infrastructure & Economic Development Bank VRDN RB Refunding for J Paul Getty Trust Series 2008 A2 RMKT 03/28/08 (A-1+/ VMIG1)
$	2,000,000		1.700	%		04/01/09	$	2,000,000
California Statewide Communities Development Authority VRDN RB for Sutter Health Floaters Series 2008-2708 (Morgan Stanley Municipal Products) (A-1+)(a)
	2,700,000		1.520			07/03/08		2,700,000
San Diego County Water Authority COPS Floaters Series 2008-2852 (FSA) (Morgan Stanley Municipal Products) (A-1)(a)
	2,340,000		1.620			07/03/08		2,340,000
Sweetwater Unified School District GO VRDN ROCS-RR-II R-12226 Series 2008 (FSA) (Citibank N.A.) (A-1+)(a)
	2,200,000		1.570			07/03/08		2,200,000
University of Southern California Educational Facilities Authority VRDN RB ROCS-RR-II R-11064 Series 2007 (Citibank N.A. SPA) (A-1+)(a)
	1,235,000		1.500			07/03/08		1,235,000
							$	10,475,000
Colorado—2.0%
Adams County School District No. 014 GO VRDN ROCS-RR-II R-8091 Series 2008 (FSA) (Citigroup Financial Products) (VMIG1)(a)
$	1,400,000		1.600	%		07/03/08	$	1,400,000
Colorado Educational & Cultural Facilities Authority VRDN RB Nature Conservancy Series 2003 A-TE Convertible 05/08/08 (Bank of America N.A. SPA) (A-1+)
	1,000,000		1.550			07/03/08		1,000,000
Colorado Health Facilities Authority VRDN RB for Catholic Health Care Series 2004 B-5 (UBS AG SPA) (A-1+/ VMIG1)
	1,050,000		1.650			07/02/08		1,050,000
Colorado Health Facilities Authority VRDN RB for Sisters of Charity Health Systems Series 2003 B (JPMorgan Chase & Co. SPA) (A-1+/ VMIG1)
	2,700,000		1.570			07/02/08		2,700,000
Colorado Regional Transportation District BB&T Municipal Trust VRDN RB Floaters Series 2017 (Branch Banking & Trust) (VMIG1)(a)
	2,600,000		1.570			07/03/08		2,600,000
Colorado State General Fund TRANS Series 2008 (SP-1+/MIG1)(b)
	9,000,000		3.000			06/26/09		9,112,950
Platte River Power Authority Electric VRDN RB Subordinated Lien Series 1993 S-1 (JPMorgan Chase & Co. SPA) (A-1+/VMIG1)
	5,345,000		1.550			07/02/08		5,345,000
							$	23,207,950

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

16

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Connecticut—0.7%
Connecticut State GO Bonds Series 2007 D (AA/ Aa3)
$	1,000,000		4.000	%		12/01/08	$	1,004,163
Connecticut State Health & Educational Facilities Authority VRDN RB for Ascension Health Credit Series 1999 B (A-1+/VMIG1)
	500,000		1.430			07/02/08		500,000
Connecticut State Health & Educational Facilities Authority VRDN RB for Yale University Series 2001 V-1 (A-1+/ VMIG1)
	5,000,000		2.850			07/01/08		5,000,000
Yale University CP Series 2008 S2 (A1+/ VMIG1)
	2,000,000		1.400			09/04/08		2,000,000
							$	8,504,163
Delaware—0.4%
Delaware GO Bonds Series 2008 (AAA/ Aaa)
$	700,000		5.000	%		03/01/09	$	713,080
Delaware Transportation Authority Transit System VRDN RB Floaters Series 2005-1205 (Morgan Stanley SPA) (A-1+)(a)(b)
	4,374,000		1.550			07/03/08		4,374,000
							$	5,087,080
District of Columbia—1.4%
District of Columbia GO VRDN Series 2001 C (JPMorgan Chase & Co. LOC) (A-1+/ VMIG1)
$	2,055,000		1.550	%		07/03/08	$	2,055,000
District of Columbia VRDN RB Refunding Series 2008 B (Bank of America N.A. LOC) (A-1+/ VMIG1)
	1,625,000		1.550			07/03/08		1,625,000
District of Columbia Water & Sewer Authority Public Utilities VRDN RB Floaters Series 2008-2861 (Morgan Stanley Municipal Products) (A-1)(a)
	3,555,000		1.600			07/03/08		3,555,000
District of Columbia Water & Sewer Authority Public Utilities VRDN RB Putters Series 2008-2964 (FSA) (JP Morgan Chase & Co.) (A-1+)(a)
	5,930,000		1.630			07/03/08		5,930,000
Washington DC Metropolitan Transit Authority CP Series 2007 A (Wachovia Bank N.A. LOC) (A-1+/ P-1)
	2,800,000		1.050			08/06/08		2,800,000
							$	15,965,000
Florida—7.7%
Broward County GO VRDN MERLOTs Series 2008 D214 (Wachovia Bank N.A. SPA) (A-1+)(a)
$	3,000,000		1.760	%		07/02/08	$	3,000,000
Broward County School District TANS Series 2007 (MIG1)
	5,000,000		4.000			09/30/08		5,007,239
Florida Local Government Pooled CP (Wachovia Bank N.A. LOC) (A-1/ P-1)
	1,000,000		2.250			07/10/08		1,000,000
Florida Local Government Pooled CP (Wachovia Bank N.A. LOC) (A-1+/ P-1)
	8,051,000		1.680			08/12/08		8,051,000
Florida Municipal Power Agency CP Series 1995 A (Wachovia Bank N.A. LOC) (A1+/ P-1)
	800,000		1.550			07/08/08		800,000
	900,000		1.550			07/15/08		900,000
Florida State Board of Education Austin Trust Certificates GO VRDN Series 2008-1083 (Bank of America N.A. SPA) (A-1+)(a)
	4,000,000		1.600			07/03/08		4,000,000
Florida State Board of Education GO Bonds Series 2005 A (AAA/ Aa1)
	3,010,000		5.000			01/01/09		3,054,012
Florida State Board of Education GO VRDN MERLOTs Series 2008 C19 (Bank of New York SPA) (A-1+) (a)
	1,000,000		1.860			07/02/08		1,000,000
Florida State Board of Education GO VRDN ROCS-RR-II R-11302 Series 2007 (Citibank N.A. SPA) (A-1+)(a)
	1,995,000		1.550			07/03/08		1,995,000
Florida State Board of Education Lehman Municipal Trust Receipts GO VRDN Floater Trust Series 2008-K18W-Reg. D (Lehman Brothers Holdings, Inc. SPA) (A-1)(a)
	1,895,000		2.000			07/02/08		1,895,000
Florida State Board of Education Lottery RB Series 2008 A (AAA/ A2)
	500,000		5.000			07/01/09		515,028
Florida State DOT GO Bonds Right of Way Series 2003 A (AAA/ Aa1)
	500,000		5.000			07/01/08		500,000
Florida State Financial Department General Services RB for Environmental Protection Preservation 2000-B Series 1998 (FSA) (AAA/ Aaa)
	350,000		5.500			07/01/08		350,000
Florida State Turnpike Authority VRDN RB Putters Series 2008-2539 (JPMorgan Chase & Co. SPA) (VMIG1)(a)
	1,000,000		1.600			07/03/08		1,000,000
Jacksonville Capital Project VRDN RB Series 2008 A (Bank of America N.A. LOC) (VMIG1)(b)
	3,640,000		1.380			07/08/08		3,640,000
Jacksonville Electric Authority CP Series 2000 A (Westdeutsche Landesbank AG SPA) (A-1/ VMIG1)
	12,000,000		1.450			07/03/08		12,000,000
Jacksonville Electric Authority VRDN RB Series 2008 Three-B-4 (Dexia Credit Local SPA) (VMIG1)
	2,000,000		1.540			07/02/08		2,000,000
Jacksonville Electric Authority VRDN RB Series 2008 Three-D-1 (Wachovia Bank N.A. SPA) (A-1+/ VMIG1)
	3,000,000		1.530			07/02/08		3,000,000
Jacksonville Electric Authority VRDN RB Subseries 2008 D (Lloyds TSB Bank PLC SPA) (A-1/ VMIG1)
	735,000		1.450			07/02/08		735,000

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

17

Schedule of Investments

ILA Tax-Exempt Diversified Portfolio (continued)

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Florida (continued)
Jacksonville Electric Authority Water & Sewer Systems VRDN RB Subseries 2008 B-1 (State Street Bank & Trust SPA) (A-1+/VMIG1)
$	3,700,000		1.540	%		07/02/08	$	3,700,000
Jacksonville Water & Sewer Systems VRDN RB Series 2008 A-2 (Banco Bilboa Vizcaya SPA) (A-1+/ VMIG1)
	4,900,000		1.400			07/02/08		4,900,000
Miami-Dade County School District TANS Series 2007 (MIG1)
	9,000,000		4.000			10/03/08		9,013,411
Orange County School District TANS Series 2007 (MIG1)
	4,000,000		4.000			09/30/08		4,005,774
Orlando & Orange County Expressway Authority VRDN RB Refunding Subseries 2008 B4 (Wachovia Bank N.A. LOC) (A-1+/ VMIG1)
	1,400,000		1.520			07/03/08		1,400,000
Orlando Utilities Commission System RB Refunding Series 2004 (AA/ Aa1)
	600,000		5.250			07/01/09		620,421
Orlando Utilities Commission Water & Electric VRDN RB Series 2002 B (SunTrust Bank SPA) (A-1+/ VMIG1)
	2,100,000		1.520			07/02/08		2,100,000
Palm Beach County School District CP Series 2008 (Bank of America N.A. LOC) (A-1/ P-1)
	2,200,000		1.550			08/14/08		2,200,000
South Miami Austin Trust Certificates VRDN RB for Baptist Health Series 2008-1117 (Bank of America N.A. SPA) (A-1+)(a)
	1,000,000		1.600			07/03/08		1,000,000
South Miami Health Facilities Authority VRDN RB for Baptist Health Series 2008-2833 (Morgan Stanley Municipal Products) (A-1)(a)
	5,375,000		1.550			07/03/08		5,375,000
							$	88,756,885
Georgia—2.7%
Burke County Development Authority VRDN PCRB Vogtle Project Series 1996 1st-RMKT 03/26/08 (A-1)
$	5,500,000		1.700	%		07/01/08	$	5,500,000
Cobb County Hospital Authority VRDN RB Anticipation Certificates for Wellstar Health Equipment Pool Project Series 2006 (SunTrust Bank LOC) (A-1+/ VMIG1)(a)
	1,000,000		1.570			07/03/08		1,000,000
Dekalb County Private Hospital Authority VRDN RB RANS for Childrens Healthcare Series 2008 (Landesbank Hessen-Thueringen SPA) (A-1/ VMIG1)
	4,000,000		1.550			07/02/08		4,000,000
Dekalb County Public Safety & Judicial Facilities Authority VRDN Floaters Series 2006-1459 (Morgan Stanley SPA) (A-1)(a)
	1,765,000		1.550			07/03/08		1,765,000
Georgia State GO Bonds Series 2002 D (AAA/ Aaa)
	1,545,000		5.250			08/01/08		1,547,025
Georgia State GO Bonds Series 2007 G (AAA/ Aaa)
	1,000,000		5.000			12/01/08		1,007,584
Georgia State Road & Thruway Authority RB Federal Highway Grant Anticipation Bonds Series 2006 (AA-/ Aa3)
	1,000,000		5.000			06/01/09		1,028,494
Georgia State Road Authority CP Series 2007 A (State Street Bank & Trust SPA) (F1+)
	1,000,000		2.100			07/10/08		1,000,000
Gwinnett County Water & Sewer Authority VRDN RB Series 2004 A (Landesbank Hessen-Thueringen SPA) (A-1+/VMIG1)
	2,225,000		1.550			07/02/08		2,225,000
Metropolitan Atlanta Rapid Transit Authority CP Series 2004 (Dexia Credit Local SPA) (A-1/ P-1)
	600,000		3.050			08/12/08		600,000
Municipal Electric Authority of Georgia Project One CP Series 1997 B (Bayerische Landesbank, Wachovia Bank N.A. and Westdeutsche Landesbank AG LOC) (A-1+)
	4,994,000		1.850			07/01/08		4,994,000
	2,000,000		1.700			08/04/08		2,000,000
	3,000,000		1.770			09/10/08		3,000,000
Private Colleges & Universities Facilities Authority VRDN RB for Emory University Series 2005 B-2 (A-1+/ VMIG1)
	1,600,000		1.510			07/03/08		1,600,000
							$	31,267,103
Hawaii—0.5%
Hawaii State GO Bonds Refunding Series 2002 CY (FSA) (AAA/ AAa)
$	510,000		4.000	%		02/01/09	$	513,780
Hawaii State GO VRDN Floaters Series 2008-2741 (Morgan Stanley Municipal Products) (A-1+)(a)
	5,625,000		1.550			07/03/08		5,625,000
							$	6,138,780
Idaho(b)—0.4%
Idaho State GO TANS Series 2008 (SP-1+/ MIG1)
$	5,000,000		3.000	%		06/30/09	$	5,062,700
Illinois—5.7%
Chicago Board of Education GO VRDN ROCS-RR-II R-3075 Series 2007 (FSA) (Citigroup Global Markets SPA) (A-1+)(a)
$	1,300,000		1.610	%		07/03/08	$	1,300,000
Chicago Metropolitan Water Reclamation District BB&T Municipal Trust GO VRDN Floater Series 2007 (Branch Banking & Trust N.A. SPA) (VMIG1)(a)
	1,500,000		1.550			07/03/08		1,500,000
Chicago Metropolitan Water Reclamation District of Greater Chicago GO VRDN DCL-052 Series 2008 (Dexia Credit Local SPA) (A-1+/ VMIG1)(a)
	980,000		1.600			07/03/08		980,000

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

18

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Illinois (continued)
Chicago Metropolitan Water Reclamation District of Greater Chicago GO VRDN Floaters Series 2008-2676 (Morgan Stanley Municipal Products) (F1+)(a)
$	1,850,000		1.550	%		07/03/08	$	1,850,000
Chicago Metropolitan Water Reclamation District of Greater Chicago GO VRDN ROCS-RR-II R-11283 Series 2007 (Citibank N.A. SPA) (A-1+)(a)
	2,000,000		1.550			07/03/08		2,000,000
Chicago O’Hare International Airport VRDN RB Floater Series 2008-2362 (FSA) (Morgan Stanley SPA) (F1+)(a)
	3,300,000		1.650			07/03/08		3,300,000
City of Chicago GO VRDN ROCS RR II R-12217 Series 2007 (FSA) (Bayerische Landesbank SPA) (A-1/ VMIG1)(a)
	1,800,000		1.610			07/03/08		1,800,000
Cook County GO VRDN Capital Improvement Series 2004 E (Depfa Bank PLC SPA) (A-1/ VMIG1)
	1,300,000		1.570			07/03/08		1,300,000
Illinois Finance Authority VRDN RB Advocate Health Care Series 2008 A-1 (A-1+/ VMIG1)
	1,500,000		1.900			01/15/09		1,500,000
Illinois Finance Authority VRDN RB Advocate Health Subseries 2008-C2B (JPMorgan Chase & Co. SPA) (A-1+/ VMIG1)
	6,800,000		1.560			07/02/08		6,800,000
Illinois Finance Authority VRDN RB Chicago Symphony Orchestra Series 2008 (RBS Citizens N.A. LOC) (VMIG1)
	1,000,000		1.350			07/03/08		1,000,000
Illinois Finance Authority VRDN RB for Northwestern University Floaters Series 2006-1489 (Morgan Stanley Municipal Products) (F1+)(a)
	4,810,000		1.550			07/03/08		4,810,000
Illinois Finance Authority VRDN RB for University of Chicago Series 2004 B (A-1+/ VMIG1)
	1,125,000		1.400			07/03/08		1,125,000
Illinois Finance Authority VRDN RB Northwestern Memorial Hospital Series 2007 B-2 (Bank of Nova Scotia SPA) (A-1+/VMIG1)
	6,300,000		1.700			07/01/08		6,300,000
Illinois Finance Authority VRDN RB Refunding for University of Chicago Series 2004 C (A-1+/ VMIG1)
	1,350,000		1.400			07/03/08		1,350,000
Illinois Health System Evanston Hospital CP Series 1987 B (A-1+/VMIG1)
	2,000,000		1.500			07/17/08		2,000,000
Illinois Health System Sisters Hospital CP Series 2008 A (A-1+/VMIG1)
	1,800,000		1.750			10/06/08		1,800,000
	1,500,000		1.750			10/20/08		1,500,000
	1,500,000		1.750			01/12/09		1,500,000
Illinois State GO VRDN P-Floats-MT-262 Series 2006 (FSA) (Bayerische Landesbank SPA) (P1)(a)
	6,945,000		1.530			07/03/08		6,945,000
Illinois State Toll Highway Authority Lehman Municipal Trust Receipts VRDN RB Floater Trust Series 2008-P21W Reg. D (FSA) (Lehman Liquidity Co. SPA) (VMIG1)(a)
	4,000,000		1.770			07/02/08		4,000,000
Illinois State Toll Highway Authority VRDN RB Senior Priority Series 2007 A-2 Tender 03/20/08 (Dexia Credit Local SPA) (A-1+/ VMIG1)
	3,000,000		1.400			07/03/08		3,000,000
Joliet Regional Port District Marine Term VRDN RB for Exxon Project Series 1989 (A-1+/ P-1)
	1,285,000		2.330			07/01/08		1,285,000
Metropolitan Pier & Exposition Authority Hospitality Facilities VRDN RB P-Floats-PT 3554 Series 2006 (Dexia Credit Local SPA) (F1+)(c)
	2,930,000		1.950			11/20/08		2,930,000
University of Illinois Board of Trustees VRDN COPS ROCS-RR-II R-11480 Series 2008 (FSA) (Citibank N.A. SPA) (A-1+)(a)
	1,495,000		1.590			07/03/08		1,495,000
University of Illinois VRDN RB Auxiliary Facilities System Series 2005 B (FSA) (State Street Bank & Trust Co. SPA) (A-1+/ VMIG1)
	1,600,000		1.520			07/02/08		1,600,000
							$	64,970,000
Indiana—3.2%
Indiana Ascension Health & Educational Facilities Financing Authority VRDN RB Floaters Series 2007-2138 (Morgan Stanley Municipal Products SPA) (F1+)(a)
$	3,000,000		1.550	%		07/03/08	$	3,000,000
Indiana Health Facilities Financing Authority VRDN RB Ascension Health Series 2003 E-6 (VMIG1)
	3,000,000		1.750			04/01/09		3,000,000
Indiana State Finance Authority VRDN RB Ascension Health Credit Series 2008 E-1 (A-1+/ VMIG1)
	1,000,000		1.600			07/02/08		1,000,000
Indiana State Finance Authority VRDN RB Ascension Health Credit Series 2008 E-2 (A-1+/ VMIG1)
	1,000,000		1.490			07/02/08		1,000,000
Indiana State Finance Authority VRDN RB Lease Appropriation Series 2005 A-2 RMKT 04/02/08 (Dexia Credit Local, JPMorgan Chase & Co., Bank of New York and RBS Citizens SPA) (A-1+/ VMIG1)
	2,000,000		1.400			07/03/08		2,000,000
Indiana State Finance Authority VRDN RB Lease Appropriation Series 2005 A-3 RMKT 03/31/08 (Dexia Credit Local, JPMorgan Chase & Co., Bank of New York and RBS Citizens SPA) (A-1+/ VMIG1)
	2,000,000		1.500			07/03/08		2,000,000

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

19

Schedule of Investments

ILA Tax-Exempt Diversified Portfolio (continued)

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Indiana (continued)
Indiana State Finance Authority VRDN RB Lease Appropriation Series 2007 A-1 RMKT 04/01/08 (Dexia Credit Local, JPMorgan Chase & Co., Bank of New York and RBS Citizens SPA) (A-1+)
$	4,000,000		1.600	%		07/02/08	$	4,000,000
Indiana State Finance Authority VRDN RB Lease Appropriation Series 2007 A-2 RMKT 04/03/08 (Dexia Credit Local, JPMorgan Chase & Co., Bank of New York and RBS Citizens SPA) (A-1+/ VMIG1)
	1,500,000		1.500			07/03/08		1,500,000
Indiana Toll Road Commission VRDN RB MERLOTs Series 2001 A-104 (Bank of New York N.A. SPA) (A-1+)(a)(b)
	3,100,000		1.610			07/02/08		3,100,000
Indiana Transportation Finance Authority Highway VRDN RB ROCS-RR-II-R-10083 Series 2007 (Citibank N.A. SPA) (A-1+)(a)
	800,000		1.550			07/03/08		800,000
Indiana University VRDN RB Putters Series 2008-2494 (JPMorgan Chase Bank SPA) (VMIG1)(a)
	1,490,000		1.600			07/03/08		1,490,000
Indianapolis Local Public Improvement Bond Bank Limited Recourse Notes Series 2007 F (SP-1+)
	450,000		4.000			01/12/09		451,971
Indianapolis Local Public Improvement Bond Bank RB Series 2008 A-1 (SP-1+)
	1,475,000		2.250			10/01/08		1,476,581
Purdue University Various Trust Certificates VRDN RB Series 2008 DCL-060 (Dexia Credit Local SPA) (A-1+/VMIG1)(a)(b)
	1,960,000		1.600			07/03/08		1,960,000
Purdue University VRDN RB Student Fee Series 2004 T (KBC Bank N.V. SPA) (A-1+/VMIG1)
	4,255,000		1.600			07/02/08		4,255,000
Reid Hospital & Health Care Services, Inc. Richmond Hospital Authority VRDN RB for Reid Hospital Project Series 2005 B (FSA) (A-1+)
	5,000,000		1.520			07/02/08		5,000,000
Reid Hospital & Health Care Services, Inc. Richmond Hospital Authority VRDN RB for Reid Hospital Project Series 2005 A (FSA) (JPMorgan Chase & Co. SPA) (A-1+)
	650,000		1.520			07/02/08		650,000
							$	36,683,552
Iowa—1.0%
Iowa Financing Authority Health Facilities VRDN RB Iowa Health Series 2005 A1 RMKT 05/20/08 (ASSURED GTY) (U.S. Bank N.A. SPA) (VMIG1)
$	2,000,000		1.500	%		07/02/08	$	2,000,000
Salix City VRDN PCRB Refunding for Midwest Power Systems, Inc. Project Series 1993 (A-1/ VMIG1)
$	9,495,000		1.750			07/02/08	$	9,495,000
							$	11,495,000
Kansas—0.5%
Kansas State DOT Highway VRDN RB Series 2004-C-2 (DePfa Bank PLC SPA) (A-1/ VMIG1)
$	600,000		1.520	%		07/02/08	$	600,000
Wyandotte County Unified Government of Kansas ABN AMRO Munitops VRDN RB Non-AMT Trust Certificates Series 2004-42 (FSA) (Bank of America N.A. SPA) (F1+)(a)
	5,000,000		1.600			07/03/08		5,000,000
							$	5,600,000
Kentucky—0.6%
Kentucky Asset/ Liability Community General Fund TRANS Series 2008 A (SP-1+/ MIG1)(b)
$	1,600,000		3.000	%		06/25/09	$	1,618,864
Kentucky Asset/ Liability CP Series 2008 A (Dexia Credit Local SPA) (A-1+)
	4,000,000		1.700			10/06/08		4,000,000
Kentucky Economic Development Finance Authority VRDN RB for Catholic Health Series 2004 C (A-1+/ VMIG1)
	1,500,000		1.450			07/02/08		1,500,000
							$	7,118,864
Louisiana—0.6%
Louisiana State Offshore Terminal Authority Deepwater Port VRDN RB Refunding for First Stage Loop LLC Series 1997 A (JPMorgan Chase & Co. LOC) (A-1+/ VMIG1)
$	6,140,000		1.850	%		07/01/08	$	6,140,000
Saint James Parish VRDN PCRB Refunding for Occidental Petroleum Series 1996 (Bayerische Landesbank LOC) (P-1)
	940,000		1.900			07/02/08		940,000
							$	7,080,000
Maryland—2.4%
Johns Hopkins University Health System CP Series 2007 B (A1+/ P-1)
$	2,200,000		1.650	%		12/04/08	$	2,200,000
Johns Hopkins University Health System CP Series 2008 F (A1+/P1)
	4,500,000		1.500			07/08/08		4,500,000
Maryland Health & Higher Education for John Hopkins University CP Series 2008 B (Wachovia Bank SPA) (A-1/ P-1)
	5,845,000		1.350			07/09/08		5,845,000
	2,545,000		1.700			07/15/08		2,545,000

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

20

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Maryland (continued)
Maryland State DOT Consolidated Transportation VRDN RB ROCS-RR-II-R-3079 Series 2008 (Citigroup Financial Products) (A-1+)(a)
$	5,395,000		1.550	%		07/03/08	$	5,395,000
Maryland State Economic Development Corp. VRDN RB Refunding for Howard Hughes Medical Center Series 2008 B (A-1+/ VMIG1)
	2,000,000		1.300			07/02/08		2,000,000
Maryland State Transportation Authority Transit Facilities Projects VRDN RB ROCS-RR-II R-11403 Series 2008 (FSA) (Citibank N.A.) (A-1+)(a)
	2,550,000		1.610			07/03/08		2,550,000
Montgomery County CP Series 2002 (Fortis Bank SPA) (A1+/P1)
	2,400,000		1.700			07/08/08		2,400,000
							$	27,435,000
Massachusetts—4.5%
Massachusetts Bay Transportation Authority CP Series 2008 B (Fortis Bank SPA) (A-1+/ P-1)
$	1,125,000		1.750	%		12/04/08	$	1,125,000
Massachusetts Bay Transportation Authority RB General Transportation System Series 1998 B (AA/ Aa2)
	2,000,000		5.125			03/01/09		2,039,674
Massachusetts Bay Transportation Authority Sales Tax VRDN RB Putters Series 2007-1825 (JPMorgan Chase Bank SPA) (A1+)(a)(b)
	5,660,000		1.580			07/03/08		5,660,000
Massachusetts Bay Transportation Authority VRDN RB Floaters Series 2008 DC-8030 (Dexia Credit Local SPA) (VMIG1)(c)
	8,030,000		1.950			07/03/08		8,030,000
Massachusetts Bay Transportation Sales Tax Austin Trust Certificates VRDN RB Series 2008-1111 (Bank of America N.A. SPA) (A-1+)(a)
	1,500,000		1.570			07/03/08		1,500,000
Massachusetts State GO VRDN P-Floats-PA-1290 Series 2005 (FSA) (Merrill Lynch Capital Services SPA) (VMIG1)(a)
	2,500,000		1.550			07/03/08		2,500,000
Massachusetts State GO VRDN Refunding Series 1998 B (JPMorgan Chase & Co. SPA) (A-1+/ VMIG1)
	2,300,000		1.450			07/03/08		2,300,000
Massachusetts State Health & Education Facilities Authority for Partners Healthcare System CP 2008 H-1 (A1+)
	2,500,000		1.570			03/02/09		2,500,000
Massachusetts State Health & Education Facilities Authority for Partners Healthcare System CP 2008 H-2 (A1+)
	3,000,000		1.700			02/02/09		3,000,000
Massachusetts State Health & Educational Facilities Authority VRDN RB for Partners Healthcare System Series 2003 D-2 (A-1+/ VMIG1)
	1,000,000		1.430			07/03/08		1,000,000
Massachusetts State Health & Educational Facilities Authority VRDN RB for Partners Healthcare System Series 2003 D-3 (JPMorgan Chase Bank SPA) (A-1+/ VMIG1)
	1,000,000		1.460			07/03/08		1,000,000
Massachusetts State Health & Educational Facilities Authority VRDN RB for Partners Healthcare System Series 2005 F4 (Bank of America N.A. SPA) (A-1+/ VMIG1)
	1,755,000		1.460			07/03/08		1,755,000
Massachusetts State Puttable Floating Option Tax-Exempt Receipts GO VRDN P-Floats-PT-4302 Series 2007 (FSA) (Merrill Lynch Capital Services SPA) (F1+)(a)
	460,000		1.550			07/03/08		460,000
Massachusetts State Water Pollution Abatement Trust RB Series 2007-13 (AAA/ Aaa)
	2,000,000		4.000			08/01/08		2,003,277
Massachusetts State Water Pollution Abatement Trust VRDN RB MERLOTs Series 2007-D77 (Wachovia Bank N.A. SPA) (A-1+)(a)
	3,600,000		1.860			07/02/08		3,600,000
Massachusetts State Water Resources Authority VRDN RB Floaters Series 2008 DCL-005 (FSA) (Dexia Credit Local SPA) (A-1+/ VMIG1)(a)
	4,895,000		1.550			07/03/08		4,895,000
Massachusetts State Water Resources Authority VRDN RB Floaters Series 2008-2737 A (Morgan Stanley Municipal Products) (A-1+)(a)
	5,475,000		1.530			07/03/08		5,475,000
Massachusetts State Water Resources Authority VRDN RB P-Floats-PA-1420 Series 2006 (Merrill Lynch Capital Services SPA) (F1+)(a)
	1,680,000		1.560			07/03/08		1,680,000
Massachusetts Water Resources Authority CP Series 2008-S94 (Bayerische Landesbank LOC) (A1+/ P1)
	1,600,000		1.350			07/07/08		1,600,000
							$	52,122,951
Michigan—3.3%
Lenawee County Hospital Finance Authority VRDN RB Refunding & Improvement Promedica Healthcare Series 2008 C (UBS AG LOC) (A-1+/ VMIG1)
$	1,000,000		1.600	%		07/02/08	$	1,000,000
Michigan Municipal Bond Authority VRDN RB ROCS-RR-II R-10170 Series 2007 (Citibank N.A. SPA) (A-1+)(a)
	3,000,000		1.550			07/03/08		3,000,000
Michigan Municipal Bond Authority VRDN RB ROCS-RR-II R-8510 Series 2007 (Citigroup Financial Products SPA) (A-1+)(a)
	1,500,000		1.550			07/03/08		1,500,000
Michigan State GO Notes 2007 A (DePfa Bank PLC LOC) (SP-1+/ MIG1)
	14,100,000		4.000			09/30/08		14,136,602

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

21

Schedule of Investments

ILA Tax-Exempt Diversified Portfolio (continued)

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Michigan (continued)
Michigan State Hospital Finance Authority VRDN RB for Ascension Health Credit Series 1999 B (A-1+)
$	900,000		1.490	%		07/02/08	$	900,000
Michigan State Hospital Finance Authority VRDN RB for Ascension Health Credit Series 2008 B-8 (A-1+/ VMIG1)
	850,000		1.490			07/02/08		850,000
Michigan State Hospital Finance Authority VRDN RB Refunding for Hospital Henry Ford Health Series 2006 B (Landesbank Hessen-Thueringen LOC) (A-1+/ VMIG1)
	630,000		1.540			07/02/08		630,000
Michigan State University VRDN RB General Series 1998 A-2 (DePfa Bank PLC SPA) (A-1/ VMIG1)
	2,895,000		1.500			07/02/08		2,895,000
Michigan State University VRDN RB General Series 2002 A (DePfa Bank PLC SPA) (A-1/ VMIG1)
	11,665,000		1.850			07/01/08		11,665,000
University of Michigan VRDN RB Refunding Hospital Floaters Series 1998 A-2 (A-1+/ VMIG1)
	1,300,000		2.050			07/01/08		1,300,000
							$	37,876,602
Minnesota—1.1%
Minnesota State GO Bonds Series 2005 (AAA/ Aa1)
$	400,000		5.000	%		10/01/08	$	401,767
Minnesota State GO VRDN ROCS-RR-II R-11323 Series 2008 (Citibank N.A. SPA) (A-1+)(a)
	1,900,000		1.550			07/03/08		1,900,000
Rochester County Mayo Clinic CP Series 2000 B (U.S. Bank N.A. SPA) (SP-1+)
	1,000,000		1.700			07/10/08		1,000,000
Rochester County Mayo Clinic CP Series 2008-01C (U.S. Bank N.A. SPA) (SP-1+)
	2,600,000		1.650			09/08/08		2,600,000
	2,000,000		1.750			09/10/08		2,000,000
Rochester Health Care Facilities VRDN RB Mayo Clinic Series 2008 E (A-1+)
	3,500,000		1.680			05/07/09		3,500,000
University of Minnesota VRDN RB Series 2001 C (JPMorgan Chase & Co. SPA) (A-1+/ VMIG1)
	870,000		1.600			07/02/08		870,000
University of Minnesota VRDN RB Weekly Series 1999 A (Landesbank Hessen-Thueringen SPA) (A-1/ VMIG1)
	785,000		1.600			07/02/08		785,000
							$	13,056,767
Mississippi—0.8%
Jackson County Port Facility VRDN RB Refunding for Chevron USA, Inc. Project Series 1993 (A-1+/ P-1)
$	1,000,000		2.500	%		07/01/08	$	1,000,000
Mississippi Business Finance Corp. Gulf Opportunity Zone VRDN RB for Chevron USA, Inc. Project Series 2007 A (A-1+/ VMIG1)
	7,000,000		2.500			07/01/08		7,000,000
Mississippi State GO Bonds Capital Improvement Series 2007 B (AA/ Aa3)
	630,000		4.000			12/01/08		632,833
							$	8,632,833
Missouri—2.5%
Bi-State Development Agency of Missouri-Illinois Metropolitan District VRDN RB for Mass Transit Metrolink Series 2005 Subseries A (JPMorgan Chase Bank LOC) (A-1+/ VMIG1)
$	1,550,000		1.550	%		07/02/08	$	1,550,000
Missouri Development Finance Board Cultural Facilities VRDN RB for Kauffman Center Performing Arts Series 2007 A (Bank of America N.A. SPA) (A-1+)
	5,600,000		2.500			07/01/08		5,600,000
Missouri Health & Educational Facilities Authority ABN AMRO Munitops Certificate Trust VRDN RB Non-AMT Series 2006-90 (Bank of America N.A. SPA) (VMIG1)(a)
	3,050,000		1.590			07/03/08		3,050,000
Missouri Health & Educational Facilities Authority VRDN RB for SSM Health Care Series 2005 A-2 (FSA) (Dexia Credit Local SPA) (A-1+)
	5,000,000		1.520			07/02/08		5,000,000
Missouri Health & Educational Facilities Authority VRDN RB for SSM Health Care Series 2005 C-5 RMKT 05/15/08 (U.S. Bank N.A. SPA) (A-1+)(b)
	8,600,000		1.530			07/02/08		8,600,000
Missouri Health & Educational Facilities Authority VRDN RB for SSM Health Series 2005 C-3 RMKT 05/15/08 (UBS AG SPA) (A-1+)
	3,200,000		1.600			07/02/08		3,200,000
Missouri Health & Educational Facilities Authority VRDN RB for Washington University Project Series 1984 (JPMorgan Chase & Co. SPA) (A-1+/ VMIG1)
	1,500,000		1.550			07/02/08		1,500,000
							$	28,500,000
Nebraska(a)—0.4%
Omaha GO VRDN Eagle Tax-Exempt Trust Series 2004-011 Class A (Landesbank Hessen-Thueringen SPA) (A-1)
$	4,000,000		1.550	%		07/03/08	$	4,000,000
Omaha Public Power District Electric VRDN RB Floaters Series 2008-2795 (Wells Fargo Bank N.A. SPA) (VMIG1)
	1,040,000		1.540			07/03/08		1,040,000
							$	5,040,000

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

22

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Nevada—1.7%
Clark County Airport VRDN RB Subordinated Lien Series 2008-D-3 (Bayerische Landesbank LOC) (A-1/ VMIG1)
$	2,350,000		1.540	%		07/02/08	$	2,350,000
Clark County CP Series 2008 (BNP Paribas LOC) (A-1+/ P-1)
	500,000		2.150			08/06/08		500,000
Clark County School District GO Bonds Tax Building Series 2008 A (AA/ Aa2)
	7,000,000		5.000			06/15/09		7,209,243
Clark County School District Puttable Floating Option Tax Exempt Receipts GO VRDN P-Floats-PA-1531 Series 2008 (Merrill Lynch Capital Services SPA) (A-1)(a)
	1,615,000		1.570			07/03/08		1,615,000
Las Vegas Convention Center CP Series 2008 (Bank of Nova Scotia, Fortis Bank, and State Street Bank & Trust Co. LOC) (A1+/ P1)
	2,000,000		1.350			07/08/08		2,000,000
Las Vegas Valley Water District CP Series 2008 (BNP Paribas & Lloyds TSB Bank SPA) (A-1+/ P-1)
	2,300,000		1.750			08/05/08		2,300,000
Las Vegas Valley Water District GO Bonds Refunding & Improvement Series 2008 A (AA+/ Aa1)
	555,000		5.000			02/01/09		564,676
Nevada State Highway Improvement VRDN RB MERLOTs Series 2008 D129 (FSA) (Wachovia Bank N.A. SPA) (A-1+)(a)
	2,000,000		1.610			07/02/08		2,000,000
Truckee Meadows Water Authority CP Series 2008 (Lloyds TSB Bank PLC LOC) (A-1+/ P-1)
	1,500,000		1.250			10/07/08		1,500,000
							$	20,038,919
New Jersey—1.7%
New Jersey Economic Development Authority VRDN RB School Facilities Construction Series 2008 X (Bank of America N.A. LOC) (VMIG1)
$	2,000,000		1.000	%		07/02/08	$	2,000,000
New Jersey Economic Development Authority VRDN RB Series 2008-0003 A (FSA) (Citigroup Financial Products) (A-1+)(a)
	4,950,000		1.610			07/03/08		4,950,000
New Jersey State Educational Facilities Authority for College of New Jersey VRDN RB Floaters Series 2008-2762X (FSA) (Morgan Stanley Municipal Products) (A-1+)(a)
	3,200,000		1.650			07/03/08		3,200,000
New Jersey Transportation Trust Fund Authority VRDN RB Floaters Series 2008 DCL 012 (FSA) (Dexia Credit Local SPA) (A-1+)(a)
	9,545,000		1.550			07/03/08		9,545,000
							$	19,695,000
New Mexico—1.0%
Bernalillo County TRANS Series 2007 (MIG1)
$	1,725,000		4.000	%		12/12/08	$	1,732,503
Farmington VRDN PCRB Refunding for Arizona Public Service Co. and Four Corners Project Series 1994 A (Barclays Bank PLC LOC) (A-1+/ VMIG1)
	4,600,000		2.600			07/01/08		4,600,000
Farmington VRDN PCRB Refunding for Arizona Public Service Co. and Four Corners Project Series 1994 B (Barclays Bank PLC LOC) (A-1+)
	1,500,000		1.850			07/01/08		1,500,000
New Mexico Finance Authority Transportation VRDN RB Refunding Subordinated Lien Subseries 2008 B-2 (UBS AG LOC) (A-1+/ VMIG1)
	2,000,000		1.650			07/03/08		2,000,000
New Mexico Finance Authority VRDN RB MERLOTs Series 2008 BR12 (Wachovia Bank N.A. SPA) (A-1+) (a)
	1,915,000		1.610			07/02/08		1,915,000
							$	11,747,503
New York—7.3%
New York City GO VRDN Fiscal 2008 Subseries J-7 (Landesbank Hessen-Thueringen LOC) (A-1/ VMIG1)
$	1,500,000		1.400	%		07/03/08	$	1,500,000
New York City GO VRDN Floater Series 2007-2256 (Morgan Stanley Municipal Products SPA) (A-1+) (a)
	3,860,000		1.530			07/03/08		3,860,000
New York City GO VRDN Subseries 1996 J-3 RMKT 05/03/99 (JPMorgan Chase & Co. LOC) (A-1+/ VMIG1)
	5,800,000		1.430			07/02/08		5,800,000
New York City GO VRDN Subseries 2003 A-6 (Landesbank Baden-Wurttemberg LOC) (A-1+/ VMIG1)
	1,700,000		1.400			07/02/08		1,700,000
New York City GO VRDN Subseries 2003 G-3 (Bank of Nova Scotia LOC) (A-1+/ VMIG1)
	4,300,000		1.800			07/02/08		4,300,000
New York City Municipal Water Finance Authority Austin Trust Certificates VRDN RB Series 2007-1038 (Bank of America N.A. SPA) (A-1+)(a)
	3,000,000		1.570			07/03/08		3,000,000
New York City Municipal Water Finance Authority Water & Sewer System VRDN RB Float-PA Series 2002-1022 (Bank of New York SPA) (A-1)(a)
	7,600,000		1.540			07/03/08		7,600,000
New York City Municipal Water Finance Authority Water & Sewer Systems VRDN RB for Second General Resolution Series 2005-AA-3 (Dexia Credit Local SPA) (A-1+/ VMIG1)
	2,400,000		1.370			07/03/08		2,400,000
New York City Municipal Water Finance Authority Water & Sewer Systems VRDN RB Putters Series 2008-2559 (JPMorgan Chase & Co. SPA) (A-1+)(a)
	2,000,000		1.580			07/03/08		2,000,000

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

23

Schedule of Investments

ILA Tax-Exempt Diversified Portfolio (continued)

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
New York (continued)
New York City Municipal Water Finance Authority Water & Sewer Systems VRDN RB Putters Series 2008-2743 (JPMorgan Chase & Co. SPA) (A-1+)(a)
$	1,000,000		1.580	%		07/03/08	$	1,000,000
New York City Transitional Finance Authority VRDN RB MERLOTs Series 2008 D73 (Wachovia Bank N.A. SPA) (A-1+)(a)
	2,000,000		1.610			07/02/08		2,000,000
New York City Transitional Finance Authority VRDN RB MERLOTs Series 2008 D98 (Wachovia Bank N.A. SPA) (A-1+)(a)
	2,000,000		1.610			07/02/08		2,000,000
New York City Transitional Finance Authority VRDN RB Recovery Series 2002-1 Subseries 1A (Landesbank Hessen-Thueringen SPA) (A-1+/ VMIG1)
	8,585,000		1.450			07/02/08		8,585,000
New York State Dormitory Authority for Cornell University CP Series 2008 (A1+/P1)
	5,000,000		1.700			08/13/08		5,000,000
New York State Dormitory Authority VRDN RB Secondary Issues Putters Series 2008-2659 (JPMorgan Chase & Co. SPA) (A-1+)(a)
	1,900,000		1.580			07/03/08		1,900,000
New York State Dormitory Authority VRDN RB Sloan Kettering Secondary Issues Floaters Series 2008-2831 (Morgan Stanley Municipal Products SPA) (A-1)(a)
	2,000,000		1.530			07/03/08		2,000,000
New York State Environmental Facilities Corp. Clean Water & Drinking Putters Series 2008-2871 (JPMorgan Chase & Co.) (VMIG1)(a)
	4,100,000		1.580			07/03/08		4,100,000
New York State Environmental Facilities Corp. Personal Income Tax Revenue Floater Series 2008 DCL-043 (Dexia Credit Local) (A-1+)(c)
	985,000		1.950			10/02/08		985,000
New York State Housing Finance Agency VRDN RB for Historic Front Street Housing Series 2003 A (Bank of New York LOC) (VMIG1)
	3,700,000		1.430			07/02/08		3,700,000
New York State Local Government Assistance Corp. RB Refunding Senior Lien Series 2008 A (AAA/ Aa3)
	2,490,000		5.000			04/01/09		2,541,075
New York State Local Government Assistance Corp. VRDN RB Series 1993 A (Bayerische Landesbank and Westdeutsche Landesbank AG SPA) (A-1+/ VMIG1)
	3,670,000		1.400			07/02/08		3,670,000
New York State Urban Development Corp. VRDN RB Putters Series 2008-2450 (JPMorgan Chase & Co. SPA) (A-1+)(a)
	7,645,000		1.580			07/03/08		7,645,000
Triborough Bridge & Tunnel Authority VRDN RB Putters Series 2008-2763 (JPMorgan Chase & Co.) (A-1+/ VMIG1)(a)
	5,165,000		1.580			07/03/08		5,165,000
Triborough Bridge & Tunnel Authority VRDN RB Refunding Series 2002 F (ABN AMRO Bank N.V. SPA) (A-1+/ VMIG1)
	1,175,000		1.410			07/03/08		1,175,000
							$	83,626,075
North Carolina—5.6%
Charlotte GO Bonds Refunding Series 1993 (AAA/ Aaa)
$	2,555,000		5.000	%		02/01/09	$	2,588,486
Charlotte GO VRDN Series 2007 (KBC Bank N.V. SPA) (A-1+/VMIG1)
	580,000		1.500			07/03/08		580,000
Charlotte-Mecklenburg Hospital Authority Heath Care System VRDN RB Refunding for Carolinas Healthcare Series 2005 D (Bank of America N.A. SPA) (A-1+/ VMIG1)
	1,195,000		2.330			07/01/08		1,195,000
Eastern Carolina University VRDN RB Series 2004 (Wachovia Bank N.A. SPA) (VMIG1)
	3,885,000		1.500			07/03/08		3,885,000
Guilford County GO VRDN Series 2004 (Bank of America N.A. SPA) (A-1+/ VMIG1)
	3,300,000		1.520			07/02/08		3,300,000
Mecklenburg County GO VRDN for Public Improvement Series 2000 C (Bank of America N.A. SPA) (A-1+/ VMIG1)
	1,000,000		1.570			07/02/08		1,000,000
Mecklenburg County GO VRDN Series 2002 C (Bank of America N.A. SPA) (A-1+/ VMIG1)
	2,115,000		1.550			07/02/08		2,115,000
Mecklenburg County GO VRDN Series 2004 B (Landesbank Hessen-Thueringen SPA) (A-1+/ VMIG1)
	1,350,000		1.450			07/03/08		1,350,000
Mecklenburg County VRDN COPS Series 2001 (Bank of America N.A. SPA) (A-1+/ VMIG1)
	400,000		1.560			07/03/08		400,000
Mecklenburg County VRDN COPS Series 2005 (Wachovia Bank N.A. SPA) (A-1+/ VMIG1)
	3,050,000		1.450			07/03/08		3,050,000
Mecklenburg County VRDN COPS Series 2006 (DePfa Bank PLC SPA) (A-1/ VMIG1)(a)
	1,750,000		1.450			07/03/08		1,750,000
Mecklenburg County VRDN COPS Series 2008 A (Suntrust Bank SPA) (A-1+/ VMIG1)
	1,000,000		1.500			07/03/08		1,000,000
North Carolina Capital Facilities Finance Agency VRDN RB for Duke University Eagle Series 2007-0016 Class A (Landesbank Hessen-Thueringen SPA) (A-1)(a)
	2,950,000		1.540			07/03/08		2,950,000
North Carolina Infrastructure Finance Corp. VRDN COPS MERLOTs Series 2008 D80 (FSA) (Wachovia Bank N.A. SPA) (A-1+)(a)
	3,600,000		1.610			07/02/08		3,600,000

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

24

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
North Carolina (continued)
North Carolina Medical Care Commission Health Care Facilities VRDN RB for Novant Health Group Series 2004 A (JPMorgan Chase & Co. SPA) (A-1+/ VMIG1)
$	1,000,000		1.540	%		07/02/08	$	1,000,000
North Carolina Medical Care Commission Hospital VRDN RB for Baptist Hospital Project Series 2000 (Wachovia Bank N.A. SPA) (A-1+/ VMIG1)
	6,395,000		1.450			07/02/08		6,395,000
North Carolina Medical Care Commission Hospital VRDN RB for Duke University Hospital Series 1985 B (Wachovia Bank N.A. SPA) (A-1+/ VMIG1)
	1,100,000		1.480			07/03/08		1,100,000
North Carolina State GO Bonds Highway Series 2004 (AAA/Aaa)
	765,000		5.000			05/01/09		785,344
North Carolina State GO VRDN for Public Improvement Series 2002 E (Landesbank Hessen-Thueringen SPA) (A-1+/VMIG1)
	8,200,000		1.300			07/02/08		8,200,000
Raleigh VRDN COPS for Downtown Improvement Project Series 2004 A (DePfa Bank PLC SPA) (A-1/ VMIG1)
	450,000		1.540			07/02/08		450,000
Raleigh VRDN COPS for Downtown Improvement Project Series 2005 B (DePfa Bank PLC SPA) (A-1/ VMIG1)
	500,000		1.540			07/02/08		500,000
Union County GO VRDN Series 2005 B (DePfa Bank PLC SPA) (A-1/ VMIG1)
	1,000,000		1.500			07/03/08		1,000,000
University of North Carolina CP Series 2008 A (A-1+/ P-1)
	1,000,000		2.200			08/06/08		1,000,000
University of North Carolina Hospital Chapel Hill VRDN RB Refunding Series 2003 A (Bank of America N.A. SPA) (A-1+/VMIG1)
	1,280,000		1.550			07/03/08		1,280,000
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		1.560			07/03/08		5,000,000
University of North Carolina VRDN RB Series 2001 B (A-1+/VMIG1)
	2,200,000		1.600			07/02/08		2,200,000
Wake County GO VRDN Public Improvements Series 2003 C (LLoyds TSB Bank PLC SPA) (A-1+/ VMIG1)
	800,000		1.440			07/03/08		800,000
Winston Salem VRDN COPS Series 2004 (Dexia Credit Local SPA) (A-1+/ VMIG1)
	1,625,000		1.440			07/03/08		1,625,000
Winston Salem Water & Sewer System VRDN RB Series 2002 B (Dexia Credit Local SPA) (A-1+/ VMIG1)
	3,650,000		1.540			07/02/08		3,650,000
							$	63,748,830
Ohio—0.6%
Franklin County Hospital VRDN RB Improvement for Nationwide Children’s Hospital Project Series 2008 B (VMIG1)
$	3,250,000		1.500	%		07/03/08	$	3,250,000
Ohio State Higher Educational Facility Commission VRDN RB for University Hospital Health System Series 2008 B (RBS Citizens NA LOC) (A-1+/ VMIG1)
	1,000,000		1.500			07/02/08		1,000,000
Ohio State Higher Educational Facility VRDN RB Case Western Reserve University Series 2008 A (Allied Irish Bank PLC LOC) (A-1/ VMIG1)
	2,000,000		1.500			07/02/08		2,000,000
							$	6,250,000
Oklahoma—0.1%
Oklahoma Turnpike Authority VRDN RB Refunding for Second Series 2006 E-Convertible 03/27/2008 (Fortis Bank, Lloyds TSB Bank and BBVA Capital SPA) (VMIG1)
$	1,500,000		1.460	%		07/03/08	$	1,500,000
Oregon—0.9%
Oregon State GO VRDN Veteran’s Welfare Series 1985 73-H (Bayerische Landesbank SPA) (A-1+/ VMIG1)
$	4,400,000		1.400	%		07/02/08	$	4,400,000
Portland Sewer System VRDN RB ROCS-RR-II R-11398 Series 2008 (FSA) (Citibank N.A. SPA) (A-1+) (a)
	5,330,000		1.600			07/03/08		5,330,000
							$	9,730,000
Pennsylvania—1.1%
Delaware Valley Regional Finance Authority Local Government VRDN RB Series 1985 D (Bayerische Landesbank LOC) (A-1/VMIG1)
$	1,300,000		1.480	%		07/02/08	$	1,300,000
Pennsylvania State GO Bonds First Series 2008 (AA/ Aa2)
	1,000,000		5.000			05/15/09		1,028,010
Pennsylvania State GO VRDN Floater Series 2007-2223 (Morgan Stanley Municipal Products SPA) (A-1+)(a)
	3,000,000		1.550			07/03/08		3,000,000
Pennsylvania State GO VRDN ROCS-RR-II R-11505 Series 2008 (Citibank N.A.) (A-1+)(a)
	3,400,000		1.550			07/03/08		3,400,000
Pennsylvania State Higher Educational Facilities VRDN RB University Health System Series 2008 A (Bank of America N.A. LOC) (A-1+/ VMIG1)
	3,665,000		1.150			07/02/08		3,665,000
							$	12,393,010

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

25

Schedule of Investments

ILA Tax-Exempt Diversified Portfolio (continued)

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Rhode Island—0.9%
Rhode Island Health & Educational Building Corp. Higher Educational Facilities VRDN RB Refunding for Higher Education Facilities Rhode Island School of Design Series 2008 A (Bank of America N.A. LOC) (VMIG1)
$	4,000,000		1.400	%		07/02/08	$	4,000,000
Rhode Island Health & Educational Building Corp. Higher Educational Facilities VRDN RB Refunding for Rhode Island School of Design Series 2008 B (Bank of America N.A. LOC) (VMIG1)
	3,000,000		1.550			07/02/08		3,000,000
Rhode Island State Health & Educational Building Corp. VRDN RB for Higher Education Facility Brown University Series 2003 B (A-1+/ VMIG1)
	1,400,000		1.450			07/03/08		1,400,000
Rhode Island State Health & Educational Building Corp. VRDN RB for Higher Educational Facilities Brown University Series 2001 B (A-1+/ VMIG1)
	2,115,000		1.200			07/03/08		2,115,000
							$	10,515,000
South Carolina—0.4%
Charleston Waterworks & Sewer VRDN RB Refunding & Capital Improvement Series 2003 A (Bank of America N.A. SPA) (A-1+/ VMIG1)
$	1,100,000		1.550	%		07/03/08	$	1,100,000
South Carolina State Public Services Revenue for Santee Cooper CP Series 2007 (BNP Paribas and Dexia Credit Local LOC) (A-1+/ P-1)
	1,592,000		1.700			10/07/08		1,592,000
	1,000,000		1.750			10/07/08		1,000,000
Spartanburg County Regional Health Services District VRDN RB Refunding Series 2008 B (Bank of America N.A. SPA) (A-1+/ VMIG1)
	1,000,000		1.550			07/02/08		1,000,000
							$	4,692,000
Tennessee—2.8%
Knoxville Tennessee GO Bonds Refunding Series 2004 B (Aa2/AA+)
$	2,335,000		5.000	%		05/01/09	$	2,395,100
Memphis GO CP Series 2001 (Westdeutsche Landesbank AG SPA) (A-1+/ P-1)
	3,000,000		1.780			11/06/08		3,000,000
	2,000,000		1.800			11/06/08		2,000,000
Metropolitan Government Nashville & Davidson County Health & Education Facilities Board VRDN RB Refunding for Vanderbilt University Series 2000 B (A-1+/ VMIG1)
	13,305,000		1.500			07/03/08		13,305,000
Shelby County GO VRDN Refunding Series 2008 A (Dexia Credit Local SPA) (A-1+/ VMIG1)
	2,000,000		1.500			07/03/08		2,000,000
Tennessee State GO CP Series 2008 A (Tennessee Consolidated Retirement System) (A1+/ P1)
	5,000,000		1.700			07/10/08		5,000,000
	3,000,000		1.400			08/08/08		3,000,000
Vanderbilt University CP Series 2005 B-1 (MBIA) (F-1+/ A-1+)
	1,000,000		1.800			07/07/08		1,000,000
							$	31,700,100
Texas—21.3%
Alvarado, TX Munitops II Trust Certificates GO VRDN Series 2007-24 (PSF-GTD) (Bank of America N.A. SPA) (F1+)(a)
$	4,000,000		1.590	%		07/03/08	$	4,000,000
Bastrop ISD Eclipse Funding Trust GO VRDN Series 2007-0087 (PSF-GTD) (U.S. Bank N.A. SPA) (A-1+)(a)
	1,610,000		1.640			07/03/08		1,610,000
Cypress-Fairbanks ISD GO VRDN P-Floats-PT-2512 Series 2005 (PSF-GTD) (Merrill Lynch Capital Services SPA) (F1+)(a)
	6,740,000		1.550			07/03/08		6,740,000
Dallas Area Rapid Transit CP Series 2007 (Bayerische Landesbank, Landesbank Baden-Wurttemberg, State Street Bank & Trust Co., and Westdeutsche Landesbank AG SPA) (A-1+/ P-1)
	2,000,000		2.300			07/23/08		2,000,000
	1,500,000		3.450			07/23/08		1,500,000
Dallas Area Rapid Transit Sales Tax VRDN RB ROCS-RR-II R-9229 Series 2008 (Citigroup Financial Products) (A-1+)(a)
	10,525,000		1.550			07/03/08		10,525,000
Dallas ISD ABN AMRO Munitops Certificates Trust GO VRDN Non-AMT Series 2005-1 (PSF-GTD) (Bank of America N.A. SPA) (VMIG1)(a)
	4,630,000		1.590			07/03/08		4,630,000
Denton ISD GO VRDN Putters Series 2008-2765 (PSF-GTD) (JPMorgan Chase & Co. SPA) (A-1+)(a)
	2,185,000		1.630			07/03/08		2,185,000
Eagle, TX ISD Munitops II Trust Certificates GO VRDN Series 2007-66 (PSF-GTD) (Bank of America N.A. SPA) (F1+)(a)
	2,470,000		1.600			07/03/08		2,470,000
Fort Worth Water & Sewer RB Refunding and Improvement Series 2003 (AA/ Aa2)
	2,775,000		5.000			02/15/09		2,822,069
Frisco ISD ABN AMRO Munitops Certificates Trust GO VRDN Non-AMT Series 2006-56 (PSF-GTD) (Bank of America N.A. SPA) (F1+)(a)
	2,170,000		1.590			07/03/08		2,170,000
Frisco ISD GO VRDN Putters Series 2007-2291 (PSF-GTD) (JPMorgan Chase & Co. SPA) (VMIG1)(a)
	3,695,000		1.630			07/03/08		3,695,000
Garland Texas GO Certificates Obligation Series 2000 (AA+/Aa2)
	3,120,000		5.500			02/15/09		3,183,533

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

26

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Texas (continued)
Harris County Flood Control District GO VRDN Refunding Contract Series 2008 B (Dexia Credit Local SPA) (A-1+/VMIG1)
$	1,200,000		1.500	%		07/03/08	$	1,200,000
Harris County Flood Control District GO VRDN ROCS-RR-II R-11313 Series 2008 (Citibank N.A. SPA) (A-1+)(a)
	1,000,000		1.550			07/03/08		1,000,000
Harris County GO VRDN ROCS-RR-II-R-12191 Series 2007 (Bank of New York SPA) (A-1+/ VMIG1)(a)
	3,000,000		1.580			07/03/08		3,000,000
Harris County Health Facilities Development Corp. VRDN RB Refunding for Hermann Healthcare System Series 2008 A (FSA) (Dexia Credit Local SPA) (A-1+/ VMIG1)
	2,000,000		1.550			07/02/08		2,000,000
Harris County Industrial Development Corp. VRDN PCRB for Exxon Mobile Corp. Series 1984 (A-1+)
	1,000,000		2.330			07/03/08		1,000,000
Harris County Toll CP Series 2008 S-E01 (Dexia Credit Local SPA) (A-1+/ P-1)
	2,400,000		1.800			07/10/08		2,400,000
Houston Community College System GO VRDN Floater Series 2008-2548 (FSA) (Morgan Stanley Municipal Products SPA) (A-1)(a)
	2,525,000		1.650			07/03/08		2,525,000
Houston CP Series D (DePfa Bank PLC SPA) (A1+/ P1)
	400,000		1.450			07/16/08		400,000
	1,000,000		1.650			08/06/08		1,000,000
Houston CP Series E (Bank of America N.A. SPA) (A1+/ P1)
	2,000,000		1.800			07/01/08		2,000,000
	3,500,000		1.450			07/03/08		3,500,000
	1,000,000		1.700			09/05/08		1,000,000
Houston GO Bonds Refunding and Public Improvement Series 1999 A (AA/ Aa3)
	2,000,000		5.250			03/01/09		2,039,986
Houston Higher Education Finance Corp. VRDN RB for Rice University Eagle Series 2007-0077 A (Citibank N.A. SPA) (A-1+)(a)
	3,430,000		1.540			07/03/08		3,430,000
Houston Higher Education Finance Corp. VRDN RB for Rice University Floaters Series 2007-2042 (Wells Fargo Bank N.A. SPA) (VMIG1)(a)
	3,300,000		1.550			07/03/08		3,300,000
Houston ISD GO Bonds Refunding and Public Improvement Series 1999 A (PSF-GTD) (AA/ Aa3)
	3,700,000		5.250			02/15/09		3,781,879
Houston ISD GO VRDN Floaters Series 2008-2785 (PSF-GTD) (Morgan Stanley Municipal Products) (A-1)(a)
	2,225,000		1.650			07/03/08		2,225,000
Houston ISD GO VRDN Putters Series 1189 (PSF-GTD) (JPMorgan Chase & Co. SPA) (VMIG1)(a)
	3,305,000		1.630			07/03/08		3,305,000
Houston Utility Systems VRDN RB Refunding 1ST Lien Series 2004 B-3 RMKT 04/11/08 (Dexia Credit Local, Bank of America N.A., Bank of New York and State Street Bank & Trust LOC) (VMIG1)
	11,200,000		1.700			07/03/08		11,200,000
Houston Utility Systems VRDN RB Refunding First Lien Series 2008 A-1 (Bank of America N.A. LOC) (A-1+/ VMIG1)
	2,500,000		1.550			07/03/08		2,500,000
Houston Water & Sewer CP Series 2008 A (Bayerische Landesbank, Dexia Credit Local, Landesbank Badden-Wurttemburg and Westdeutsche Landesbank AG SPA) (A-1+/P-1)
	1,000,000		1.700			08/14/08		1,000,000
Irving ISD ABN AMRO Munitops Certificates Trust GO VRDN Non-AMT Series 2007-8 (PSF-GTD) (Bank of America N.A. SPA) (VMIG1)(a)
	3,000,000		1.590			07/03/08		3,000,000
Judson ISD GO VRDN Putters Series 2008-2690 (PSF-GTD) (JPMorgan Chase & Co.) (VMIG1)(a)
	5,140,000		1.630			07/03/08		5,140,000
Katy ISD GO VRDN ROCS-RR-II R-910 Series 2007 (PSF-GTD) (Citibank N.A. SPA) (VMIG1)(a)
	665,000		1.550			07/03/08		665,000
Lake Travis ISD ABN AMRO Munitops Certificates Trust GO VRDN Non-AMT Series 2006-18 (PSF-GTD) (Bank of America N.A. SPA) (F1+)(a)
	2,800,000		1.590			07/03/08		2,800,000
Lower Colorado River Authority VRDN RB Putters Series 2008-2994 (BHAC) (JPMorgan Chase & Co.) (A-1+)(a)
	4,325,000		1.630			07/03/08		4,325,000
Lubbock Health Facilities Development Corp. VRDN RB Refunding for St. Joseph Health Systems Series 2008 A (A-1+/ VMIG1)
	2,000,000		1.400			07/03/08		2,000,000
McAllen ISD Puttable Floating Option Tax-Exempt Receipts GO VRDN P-Floats-PA-1532 Series 2008 (PSF-GTD) (Merrill Lynch Capital Services) (A-1)(a)
	1,975,000		1.570			07/03/08		1,975,000
North East ISD Eclipse Funding Trust GO VRDN Solar Eclipse Series 2007-0101 (PSF-GTD) (U.S. Bank N.A. SPA) (A-1+)(a)
	1,000,000		1.550			07/03/08		1,000,000
Plano GO VRDN Floater Series 2007-1862 (Wells Fargo & Co.) (VMIG1)(a)
	2,915,000		1.550			07/03/08		2,915,000
Red River Education Finance VRDN RB for Higher Education Christian University Series 2006 (VMIG1)
	5,200,000		1.500			07/02/08		5,200,000
Rice University Munitops Certificates Trust VRDN RB Non-AMT Single 144A Series 2007-53 (Bank of America N.A. SPA) (VMIG1)(a)
	1,855,000		1.600			07/03/08		1,855,000

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

27

Schedule of Investments

ILA Tax-Exempt Diversified Portfolio (continued)

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Texas (continued)
San Antonio Electric & Gas Systems CP Series 2008 (Bank of America N.A. SPA & State Street Bank & Trust Co. SPA) (A-1/ P-1)
$	1,400,000		1.700	%		08/14/08	$	1,400,000
San Antonio Electric & Gas Systems VRDN RB Floater Trust Series 2006 K15 Reg. D (Lehman Brothers SPA) (A-1/VMIG1)(a)
	2,670,000		1.770			07/02/08		2,670,000
San Antonio Electric & Gas Systems VRDN RB MERLOTs Series 2008 D65 (Wachovia Bank N.A. SPA) (VMIG1)(a)
	3,135,000		1.610			07/02/08		3,135,000
San Antonio Electric & Gas Systems VRDN RB MERLOTs Series 2008-D178 (Wachovia Bank N.A. SPA) (VMIG1)(a)
	2,625,000		1.710			07/02/08		2,625,000
San Antonio Electric & Gas Systems VRDN RB P-Floats-PT 1498 Series 2002 (Merrill Lynch Capital Services SPA) (A-1)(a)
	2,990,000		1.560			07/03/08		2,990,000
San Antonio Electric & Gas Systems VRDN RB ROCS-RR-II R-11496 Series 2008 (Citibank N.A.) (VMIG1)(a)
	4,000,000		1.550			07/03/08		4,000,000
San Antonio Electric & Gas Systems VRDN RB Systems Junior Lien Series 2003 (Bank of America N.A. SPA) (A-1+/ VMIG1)
	4,900,000		1.600			07/02/08		4,900,000
San Antonio GO VRDN MERLOTs Series 2007-D85 (Wachovia Bank N.A. SPA) (A-1+)(a)
	2,700,000		1.860			07/02/08		2,700,000
San Antonio Water Revenue CP Series 2008 (Bank of America N.A. SPA) (A-1+/ P-1)
	1,850,000		1.700			07/01/08		1,850,000
Socorro ISD Puttable Floating Option Tax-Exempt Receipts GO VRDN P-Floats-PT-4506 Series 2008 (Merrill Lynch International SPA) (F1)(a)
	1,000,000		1.550			07/03/08		1,000,000
Spring Branch ISD GO VRDN ROCS-RR-II R-9211 Series 2008 (PSF-GTD) (Citigroup Financial Products SPA) (A-1+)(a)
	5,000,000		1.550			07/03/08		5,000,000
Tarrant County Cultural Educational Facilities Finance Corp. VRDN RB Refunding for Scott and White Memorial Hospital Series 2008 A (Bank of America N.A. LOC) (A-1+/ VMIG1)
	1,900,000		1.520			07/03/08		1,900,000
Texas DOT CP Series 2008 A (Bank of America N.A. and State Street Bank & Trust LOC) (A-1+/ P-1)
	2,000,000		1.650			08/14/08		2,000,000
Texas Municipal Power CP Series 2005 (Bayerische Landesbank LOC) (A-1+/ P1)
	2,000,000		1.700			07/09/08		2,000,000
Texas State GO TRANS Series 2007 (SP-1+/ MIG1)
	5,800,000		4.500			08/28/08		5,807,538
Texas State GO VRDN Floaters Series 2008-2555 (Morgan Stanley Municipal Products SPA) (F1+)(a)
	5,050,000		1.550			07/03/08		5,050,000
Texas State GO VRDN MERLOTs Series 2008-D123 (Wachovia Bank N.A. SPA) (VMIG1)(a)
	4,365,000		1.860			07/02/08		4,365,000
Texas State Public Finance Authority CP Series 2002 (A-1+/ P1)
	2,100,000		1.820			07/01/08		2,100,000
	1,300,000		1.430			08/07/08		1,300,000
	1,000,000		1.700			10/07/08		1,000,000
	1,100,000		1.700			12/02/08		1,100,000
	800,000		1.900			02/05/09		800,000
Texas State Transportation Commission Austin Trust Certificates GO VRDN Series 2007-1026 (Bank of America N.A. SPA) (A-1+)(a)
	3,000,000		1.590			07/03/08		3,000,000
Texas State Transportation Commission VRDN RB Floaters Series 2007-2033 (Morgan Stanley Municipal Products SPA) (A-1+)(a)
	1,492,000		1.550			07/03/08		1,492,000
Texas State Transportation Commission VRDN RB Floaters Series 2008-2752 (Morgan Stanley Municipal Products) (A-1+)(a)
	5,000,000		1.550			07/03/08		5,000,000
Texas State Transportation Commission VRDN RB ROCS-RR-II R-11273 Series 2007 (Citibank N.A. SPA) (A-1+)(a)
	1,430,000		1.550			07/03/08		1,430,000
Texas Technical University CP Series 2008 (A-1+/ P-1)
	5,000,000		1.650			07/01/08		5,000,000
Texas Technical University CP Series 2008 A (Aa3/AA)
	1,000,000		2.100			08/06/08		1,000,000
Texas Technical University CP Series 2008 A-1 (Aa3/AA)
	1,000,000		1.650			09/04/08		1,000,000
Texas Transportation Commission BB&T Municipal Securities Trust Certificates VRDN RB Floaters Series 2007-2058 (Branch Banking & Trust SPA) (VMIG1)(a)
	1,205,000		1.550			07/03/08		1,205,000
Texas Water Development Board Fund Lehman Municipal Trust Receipts VRDN RB Floater Trust Series 2007-K26 Reg. D (Lehman Brothers Holdings, Inc. SPA) (VMIG1)(a)
	14,470,000		1.650			07/02/08		14,470,000
University of Texas Callier Center Dallas Campus CP Series 2008 A (Dexia Credit Local SPA) (A-1+)
	1,000,000		1.750			08/05/08		1,000,000
University of Texas CP Series 2008 (A-1+/P-1)
	2,000,000		1.750			07/15/08		2,000,000
	3,500,000		1.650			11/04/08		3,500,000
University of Texas Lehman Municipal Trust Receipts VRDN RB Floater Trust Series 2008-K1W Reg. D (Lehman Liquidity Co. SPA) (VMIG1)(a)
	1,995,000		1.650			07/02/08		1,995,000
University of Texas Permanent University Fund RB Series 1997 (AAA/ Aaa)
	405,000		5.250			07/01/08		405,000

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

28

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Texas (continued)
University of Texas Permanent University Fund VRDN RB ROCS-RR-II R-11290 Series 2007 (Citibank N.A. SPA) (A-1+)(a)
$	1,000,000		1.550	%		07/03/08	$	1,000,000
University of Texas VRDN RB Floater Series 2003 PA-1194 (Merrill Lynch Capital Services SPA) (A-1)(a)
	2,055,000		1.560			07/03/08		2,055,000
University of Texas VRDN RB ROCS-RR-II R-11077 Series 2007 (Citibank N.A. SPA) (A-1+)(a)
	4,095,000		1.550			07/03/08		4,095,000
Waco Texas Educational Finance Corp. VRDN RB for Baylor University ROCS-RR-II R-9209 Series 2008 (Citigroup Financial Products) (A-1+)(a)
	3,000,000		1.550			07/03/08		3,000,000
							$	244,552,005
Utah—1.9%
Murray City Hospital VRDN RB for IHC Health Services, Inc. Series 2003 B (A-1+)(b)
$	10,000,000		1.450	%		07/03/08	$	10,000,000
Murray City Hospital VRDN RB for IHC Health Services, Inc. Series 2005 D (Citibank N.A. SPA) (A-1+/ VMIG1)
	700,000		1.550			07/03/08		700,000
Riverton Hospital Revenue VRDN RB Putters Series 2007-1762 (JPMorgan Chase & Co. SPA) (VMIG1) (a)
	5,000,000		1.600			07/03/08		5,000,000
Salt Lake City Sales Tax VRDN RB Refunding Series 2004 (State Street Bank & Trust Co. SPA) (VMIG1)
	1,660,000		1.600			07/02/08		1,660,000
Salt Lake County Sales Tax VRDN RB Floats PT-2901 Series 2005 (Merrill Lynch Capital Services SPA) (A-1)(a)
	3,230,000		1.560			07/03/08		3,230,000
Utah Transit Authority Puttable Floating Option Tax-Exempt Receipts VRDN RB P-Floats-PA-1528 Series 2008 (Merrill Lynch Capital Services SPA) (A-1)(a)
	1,500,000		1.570			07/03/08		1,500,000
							$	22,090,000
Vermont—0.1%
Vermont Educational & Health Buildings Financing Agency VRDN RB Norwich University Project Series 2008 (RBS Citizens Bank LOC) (VMIG1)
$	1,500,000		1.450	%		07/02/08	$	1,500,000
Virginia—2.7%
Arlington County Public Improvement GO Bonds Series 2007 (AAA/ Aaa)
$	1,000,000		5.000	%		03/15/09	$	1,022,597
Fairfax County IDA VRDN RB for Inova Health System Project Series 2008 C-2 (A-1+/ VMIG1)
	6,490,000		1.600			04/20/09		6,490,000
Hampton Roads Sanitation District Wastewater VRDN RB Floaters Series 2008-2580 (Morgan Stanley Municipal Products) (A-1+)(a)
	3,710,000		1.550			07/03/08		3,710,000
Hampton Roads Sanitation District Wastewater VRDN RB Putters Series 2008-2673 (JPMorgan Chase & Co. SPA) (A-1+)(a)
	1,115,000		1.600			07/03/08		1,115,000
Norfolk Economic Development Authority Hospital Facilities VRDN RB Sentara Healthcare Series 2004 B (FSA) (A-1+/VMIG1)
	8,450,000		1.500			07/02/08		8,450,000
University of Virginia VRDN RB Floaters Series 2008-2743 (Morgan Stanley Municipal Products) (F1+)(a)
	5,000,000		1.550			07/03/08		5,000,000
Virginia College Building Authority Educational Facilities VRDN RB for 21st Century College & Equipment Series 2004 A (AA+/ Aa1)
	500,000		5.000			02/01/09		508,354
Virginia College Building Authority Educational Facilities VRDN RB for 21st Century College Series 2006 C (Wachovia Bank N.A. SPA) (A-1+/ VMIG1)
	2,840,000		2.100			07/01/08		2,840,000
Virginia State Public Building Authority Public Facilities RB Refunding Series 2005 B (AA+/ Aa1)
	600,000		5.000			08/01/08		600,767
Virginia State Public Building Authority Public Facilities RB Series 2007 A (AA+/ Aa1)
	550,000		5.000			08/01/08		550,703
Virginia State Public School Authority RB Refunding School Financing 1997 Series 2003 D (AA+/ Aa1)
	1,000,000		5.000			02/01/09		1,018,190
							$	31,305,611
Washington—4.7%
Energy Northwest Washington Electric Puttable Floating Option Tax-Exempt Receipts VRDN RB P-Floats-PT-4158 Series 2007 (Dexia Credit Local SPA) (F1+)(c)
$	1,110,000		1.900	%		10/02/08	$	1,110,000
Energy Northwest Washington Electric RB Unrefunded Columbia Series 2004 A (AAA/ AA-)
	1,170,000		5.250			07/01/08		1,170,000
Energy Northwest Washington Electric VRDN RB MERLOTs Series 2008-D200 (Wachovia Bank N.A. SPA) (VMIG1)(a)
	1,500,000		1.710			07/02/08		1,500,000
Energy Northwest Washington Electric VRDN RB Refunding Project No. 3 Series 2003 D-3-1 (FSA) (Dexia Credit Local SPA) (A-1+/ VMIG1)
	1,400,000		1.520			07/02/08		1,400,000

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

29

Schedule of Investments

ILA Tax-Exempt Diversified Portfolio (continued)

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Washington (continued)
Energy Northwest Washington Electric VRDN RB Refunding Project No. 3 Series 2003 E (JPMorgan Chase & Co. LOC) (A-1+/ VMIG1)
$	5,075,000		1.520	%		07/02/08	$	5,075,000
King County CP Series 2008 A (Bayerische Landesbank SPA) (A1/P1)
	1,000,000		1.400			07/07/08		1,000,000
King County Eclipse Funding Trust VRDN RB Series 2007-0095 (FSA) (U.S. Bank N.A. SPA) (A-1+) (a)
	3,340,000		1.550			07/03/08		3,340,000
King County School District No. 405 Bellevue GO Bonds Series 2005 (AA+/ Aa1)
	1,000,000		5.000			12/01/08		1,012,360
King County Sewer System VRDN RB Junior Lien Series 2001 A (Landesbank Hessen-Thueringen LOC) (A-1+/ VMIG1)
	600,000		1.500			07/02/08		600,000
Seattle Drain & Wastewater VRDN RB ROCS-RR-II R-11425 Series 2008 (FSA) (Citibank N.A. SPA) (A-1+)(a)
	3,390,000		1.580			07/03/08		3,390,000
Seattle Municipal Light & Power VRDN RB Refunding ROC-II-R-47 Series 2001 (FSA) (Citibank N.A. SPA) (VMIG1)(a)
	7,920,000		1.600			07/03/08		7,920,000
Snohomish County Public Utilities District No. 001 Generation System VRDN RB Refunding Series 2002 A-2 (FSA) (Dexia Credit Local SPA) (A-1+/ VMIG1)
	2,300,000		1.520			07/02/08		2,300,000
Washington State BB&T Municipal Trust GO VRDN Floaters Series 2008-2 (Branch Banking & Trust) (VMIG1)(a)
	2,670,000		1.550			07/03/08		2,670,000
Washington State GO Series 2007 D (AA+/ Aa1)
	4,000,000		4.500			01/01/09		4,048,569
Washington State GO VRDN Floaters Series 2008-2602 (Morgan Stanley Municipal Products SPA) (A-1+)(a)
	740,000		1.550			07/03/08		740,000
Washington State GO VRDN MERLOTs Series 2008 C28 (Wachovia Bank N.A. SPA) (A-1+)(a)(b)
	2,495,000		1.860			07/02/08		2,495,000
Washington State GO VRDN Putters Series 2008-2650Z (FSA) (JPMorgan Chase & Co. SPA) (A-1+)(a)
	995,000		1.630			07/03/08		995,000
Washington State GO VRDN ROCS-RR-II R-12002 Series 2007 (Citigroup, Inc. SPA) (A-1+/ VMIG1)(a)
	2,500,000		1.550			07/03/08		2,500,000
Washington State GO VRDN ROCS-RR-II R-12023 Series 2007 (Citibank N.A. SPA) (VMIG1)(a)
	5,000,000		1.560			07/03/08		5,000,000
Washington State Health Care Facilities Authority VRDN RB for Catholic Health Series 2002 B (JPMorgan Chase & Co. SPA) (A-1+/ VMIG1)
	1,085,000		1.550			07/02/08		1,085,000
Washington State Health Care Facilities Authority VRDN RB for Catholic Health Series 2007 A-2 RMKT 05/14/08 (FSA) (VMIG1)
	3,000,000		1.550			07/02/08		3,000,000
Washington State Health Care Facilities Authority VRDN RB Multicare Health System Series 2008 A (ASSURED GTY) (Wells Fargo & Co. SPA) (A-1+/ VMIG1)
	2,000,000		1.400			07/02/08		2,000,000
							$	54,350,929
Wisconsin—0.3%
State of Wisconsin CP Series 2006 A (State Street Bank & Trust and California State Teachers Retirement SPA) (A-1+/ P-1)
$	1,255,000		1.700	%		07/15/08	$	1,255,000
Wisconsin State Clean Water VRDN RB Floaters Series 2008-2444 (Morgan Stanley Municipal Products SPA) (A-1+)(a)
	555,500		1.550			07/03/08		555,500
Wisconsin State Health Educational Facilities Sisters Hospital CP Series 2003 B (FSA) (A1+/P1)
	1,375,000		1.750			08/04/08		1,375,000
							$	3,185,500
Wyoming—0.1%
Uinta County VRDN PCRB Refunding for Chevron USA, Inc. Project Series 1993 (P-1)
$	1,000,000		1.700	%		07/01/08	$	1,000,000
Other Territories(a)—0.2%
Puttable Floating Option Tax-Exempt Receipts VRDN RB P-Floats-EC-002 Series 2006 (Merrill Lynch Capital Services SPA) (F1+)
$	58,000		1.560	%		07/03/08	$	58,000

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

30

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Other Territories(a) (continued)
Puttable Floating Option Tax-Exempt Receipts VRDN RB P-Floats-EC-003 Series 2006 (Merrill Lynch Capital Services SPA) (F1+)
$	1,900,000		1.570	%		07/03/08	$	1,900,000
							$	1,958,000
Total Investments—102.7%							$	1,180,610,366
Liabilities in Excess of Other Assets—(2.7)%								(30,856,838	)
Net Assets—100.0%							$	1,149,753,528

The percentage shown for each investment 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, 2008, these securities amounted to $454,619,500 or approximately 39.5% of net assets.
(b)	All or a portion represents a forward commitment.
(c)	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, 2008, these securities amounted to $13,055,000 or approximately 1.1% of net assets.

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.

31

Schedule of Investments

ILA Tax-Exempt Diversified Portfolio (continued)

June 30, 2008 (Unaudited)

Investment Abbreviations:

AMT	—	Alternative Minimum Tax
Assured GTY	—	Insured by Assured Guaranty Corp.
BB&T	—	Branch Banking & Trust
BHAC	—	Berkshire Hathaway Assurance Corp.
COPS	—	Certificates of Participation
CP	—	Commercial Paper
DOT	—	Department of Transportation
FSA	—	Insured by Financial Security Assurance Co.
GO	—	General Obligation
IDA	—	Industrial Development Authority
IDB	—	Industrial Development Bond
ISD	—	Independent School District
LOC	—	Letter of Credit
MBIA	—	Insured by Municipal Bond Investors Assurance
MERLOTs	—	Municipal Exempt Receipts Liquidity Optional Tenders
PCRB	—	Pollution Control Revenue Bond
PSF-GTD	—	Guaranteed by Permanent School Fund
RANS	—	Revenue Anticipation Notes
RB	—	Revenue Bond
RMKT	—	Remarketed
ROCS	—	Reset Option Certificates
RR	—	Revenue Refunding
SPA	—	Stand-by Purchase Agreement
TANS	—	Tax Anticipation Notes
TRANS	—	Tax Revenue Anticipation Notes
VRDN	—	Variable Rate Demand Notes

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

32

Schedule of Investments

ILA Tax-Exempt New York Portfolio

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
New York—97.6%
Buffalo Municipal Water Finance Authority Water System VRDN RB Refunding Series 2008 (JPMorgan Chase & Co. LOC) (A-1+)
$	4,020,000		1.400	%		07/02/08	$	4,020,000
Haverstraw Stony Point Central School District GO VRDN MERLOTs Series 2008 D-26 (FSA) (Wachovia Bank N.A. SPA) (VMIG1)(a)
	1,550,000		1.710			07/02/08		1,550,000
Long Island Power Authority Electric System VRDN RB Subseries 1998 1A RMKT 05/23/03 (Bayerische Landesbank and Landesbank Baden-Wurttemberg LOC) (A-1+/ VMIG1)
	5,600,000		1.500			07/02/08		5,600,000
Metropolitan Transportation Authority RB Series 2007 B (A/ A2)
	6,170,000		4.000			11/15/08		6,189,271
Metropolitan Transportation Authority VRDN RB P-Floats-PA-1077 Series 2002 (FSA) (Bank of New York SPA) (A-1+)(a)
	4,200,000		1.540			07/03/08		4,200,000
Metropolitan Transportation Authority VRDN RB Putters Series 2008-3005 (BHAC) (JPMorgan Chase & Co.) (VMIG1)(a)
	4,000,000		1.610			07/03/08		4,000,000
Metropolitan Transportation Authority VRDN RB ROCS RR II R-12163 Series 2007 (FSA) (Bank of New York) (A-1+/VMIG1)(a)
	5,245,000		1.600			07/03/08		5,245,000
Metropolitan Transportation Authority VRDN RB Subseries 2005 E-2 (Fortis Bank SA LOC) (A-1+/ VMIG1)
	5,400,000		1.500			07/03/08		5,400,000
Nassau County GO RANS Series 2008 B (SP-1+/ MIG1)
	15,000,000		3.000			05/15/09		15,180,568
Nassau County GO VRDN Series 2007 A (Bank of America N.A. LOC) (A-1+/ VMIG1)
	1,475,000		1.050			07/02/08		1,475,000
New York City GO Bonds Series 2004 G (AA/ Aa3)
	3,310,000		5.000			08/01/08		3,314,558
New York City GO Bonds Series 2008 K (AA/ Aa3)
	1,150,000		4.000			08/01/08		1,151,677
New York City GO VRDN Series 1994 B-9 RMKT 05/03/99 (JPMorgan Chase & Co. LOC) (A-1+/ VMIG1)
	800,000		1.430			07/02/08		800,000
New York City GO VRDN Subseries 1996 J-3 RMKT 05/03/99 (JPMorgan Chase & Co. LOC) (A-1+/ VMIG1)
	3,700,000		1.430			07/02/08		3,700,000
New York City GO VRDN Subseries 2002 C-2 (Bayerische Landesbank LOC) (A-1+/ VMIG1)
	5,400,000		1.430			07/02/08		5,400,000
New York City GO VRDN Subseries 2003 A-3 (BNP Paribas LOC) (A-1+/ VMIG1)
	2,000,000		1.430			07/02/08		2,000,000
New York City GO VRDN Subseries 2003 G-3 (Bank of Nova Scotia LOC) (A-1+/ VMIG1)
	1,300,000		1.800			07/02/08		1,300,000
New York City GO VRDN Subseries 2004 H-3 (Bank of New York LOC) (A-1+/ VMIG1)
	1,700,000		1.300			07/02/08		1,700,000
New York City GO VRDN Subseries 2004 H-8 (Westdeutsche Landesbank AG LOC) (A-1+/ VMIG1)
	1,500,000		1.150			07/02/08		1,500,000
New York City Housing Development Corp. MF Hsg. VRDN RB for 2 Gold Street Series 2006 A (FNMA) (A-1+)
	10,000,000		1.450			07/02/08		10,000,000
New York City Housing Development Corp. MF Hsg. VRDN RB for 90 West Street Series 2006 A (FNMA) (A-1+)
	5,315,000		1.450			07/02/08		5,315,000
New York City Lehman Municipal Trust Receipts GO VRDN Floater Trust Series 2006-P36U Reg. D (Lehman Brothers Holdings, Inc.) (A-1)(a)
	3,485,000		1.650			07/02/08		3,485,000
New York City Municipal Assistance Corp. RB Series 1997 L (AAA/ Aaa)
	2,385,000		6.000			07/01/08		2,385,000
New York City Municipal Assistance Corp. RB Series 1999 O (AAA/ Aaa)
	4,800,000		5.250			07/01/08		4,800,000
New York City Municipal Finance Authority Water and Sewer Lehman Municipal Trust Receipts VRDN RB Floaters Trust Series 2006-945U Reg. D (Lehman Brothers Holdings, Inc. SPA) (A-1/ VMIG1)(a)
	995,000		1.650			07/02/08		995,000
New York City Municipal Water Finance Authority CP Series 6 (Westdeutsche Landesbank AG and Bayerische Landesbank SPA) (P-1/ A-1+)
	3,000,000		1.700			08/05/08		3,000,000
New York City Municipal Water Finance Authority Water and Sewer System VRDN RB Float-PA-1022 Series 2002 (Bank of New York) (A-1)(a)
	8,500,000		1.540			07/03/08		8,500,000
New York City Municipal Water Finance Authority Water and Sewer System VRDN RB Putters Series 2006-1263 (FSA) (JPMorgan Chase & Co. SPA) (A-1+)(a)
	1,485,000		1.610			07/03/08		1,485,000
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)
	240,000		1.540			07/03/08		240,000
New York City Transitional Finance Authority VRDN RB Floaters Series 2008-2830 (Morgan Stanley Municipal Products) (A-1)
	3,000,000		1.530			07/03/08		3,000,000
New York City Transitional Finance Authority VRDN RB for Recovery Series 2002-1 Subseries 1A (Landesbank Hessen-Thueringen SPA) (A-1+/ VMIG1)
	1,800,000		1.450			07/02/08		1,800,000

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

33

Schedule of Investments

ILA Tax-Exempt New York Portfolio (continued)

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
New York (continued)
New York City Transitional Finance Authority VRDN RB for Recovery Series 2002-1 Subseries 1D (Landesbank Hessen-Thueringen SPA) (A-1+/ VMIG1)
$	2,310,000		1.650	%		07/01/08	$	2,310,000
New York City Transitional Finance Authority VRDN RB MERLOTs Series 2008 D213 (Wachovia Bank N.A. SPA) (A-1+)(a)
	2,000,000		1.610			07/02/08		2,000,000
New York City Transitional Finance Authority VRDN RB MERLOTs Series 2008 D98 (Wachovia Bank N.A. SPA) (A-1+)(a)
	3,690,000		1.610			07/02/08		3,690,000
New York City Transitional Finance Authority VRDN RB Puttable Floating Option Tax-Exempt Receipts P-Floats-PT-4418 Series 2007 (Merrill Lynch Capital Services SPA) (F1+)(a)
	3,500,000		1.540			07/03/08		3,500,000
New York City Transitional Finance Authority VRDN RB Putters Series 2005-791 (JPMorgan Chase & Co.) (A-1+)(a)
	995,000		1.580			07/03/08		995,000
New York City Transitional Finance Authority VRDN RB ROCS RR II R-10130 Series 2007 (Citibank N.A. SPA) (A-1+)(a)
	3,000,000		1.540			07/03/08		3,000,000
New York City Trust Cultural Resources VRDN RB for Metropolitan Museum of Art Series 2006 A1-RMKT 04/29/08 (VMIG1)
	5,000,000		1.200			07/03/08		5,000,000
New York City Trust Cultural Resources VRDN RB for Pierpont Morgan Library Series 2004 (JPMorgan Chase & Co. SPA) (A-1+)
	5,405,000		1.450			07/03/08		5,405,000
New York State Dormitory Authority for Columbia University CP Series 2002 C (A-1+)
	2,000,000		2.000			07/07/08		2,000,000
New York State Dormitory Authority for Columbia University VRDN RB Secondary Issues Floaters Series 2008-2680 (Morgan Stanley Municipal Products) (VMIG1)(a)
	6,120,000		1.530			07/03/08		6,120,000
New York State Dormitory Authority for Cornell University CP Series 2008 (P-1/ A-1+)
	10,000,000		1.700			09/10/08		10,000,000
New York State Dormitory Authority Non-State Supported Debt VRDN RB for Fordham University Series 2008 A-1 (Allied Irish Bank PLC LOC) (VMIG1)
	7,700,000		1.150			07/02/08		7,700,000
New York State Dormitory Authority Non-State Supported Debt VRDN RB for Fordham University Series 2008 A-2 (Allied Irish Bank PLC LOC) (VMIG1)
	8,000,000		1.150			07/02/08		8,000,000
New York State Dormitory Authority Non-State Supported Debt VRDN RB for Ithaca College Series 2008 (RBS Citizens N.A. LOC) (VMIG1)
	5,000,000		1.510			07/03/08		5,000,000
New York State Dormitory Authority Non-State Supported Debt VRDN RB for Rockefeller University Series 2005 A Convertible 04/03/08 (A-1+)
	12,200,000		1.250			07/03/08		12,200,000
New York State Dormitory Authority Non-State Supported Debt VRDN RB for Rockefeller University Series 2005 A2 Convertible 04/07/08 (A-1+)
	8,300,000		1.250			07/03/08		8,300,000
New York State Dormitory Authority VRDN RB for Columbia University Secondary Issues Floater Series 2008-2644 (Morgan Stanley Municipal Products) (A-1)(a)
	5,110,000		1.530			07/03/08		5,110,000
New York State Dormitory Authority VRDN RB for Columbia University Secondary Issues Series 2006 K1 Reg. D (Lehman Brothers Holdings, Inc.) (VMIG1)(a)
	6,100,000		1.730			07/02/08		6,100,000
New York State Dormitory Authority VRDN RB for Cornell University Series 1990 B (JPMorgan Chase & Co. SPA) (A-1+/VMIG1)
	4,200,000		1.650			07/01/08		4,200,000
New York State Dormitory Authority VRDN RB for Cornell University Series 2000 B (JPMorgan Chase & Co. SPA) (A-1+/VMIG1)(b)
	1,915,000		1.250			07/03/08		1,915,000
New York State Dormitory Authority VRDN RB for Rockefeller University P-Floats-PA 1196 Series 2003 (Merrill Lynch Capital Services SPA) (A-1)(a)
	5,795,000		1.540			07/03/08		5,795,000
New York State Dormitory Authority VRDN RB Secondary Issues Eagle Series 2007-0096 Class A (Citibank N.A. SPA) (A-1+)(a)
	885,000		1.530			07/03/08		885,000
New York State Dormitory Authority VRDN RB Secondary Issues Floaters Series 2006-1525 (Morgan Stanley Municipal Products SPA) (A-1)(a)
	1,042,000		1.530			07/03/08		1,042,000
New York State Dormitory Authority VRDN RB Secondary Issues Floaters Series 2008-2464 (Morgan Stanley Municipal Products) (A-1+)(a)
	13,670,000		1.530			07/03/08		13,670,000
New York State Dormitory Authority VRDN RB Secondary Issues Floaters Series 2008-2465 (Morgan Stanley Municipal Products) (A-1+)(a)
	4,385,000		1.530			07/03/08		4,385,000
New York State Dormitory Authority VRDN RB Secondary Issues Putters Series 2005-1187 (FSA) (JPMorgan Chase & Co. SPA) (F1+)(a)
	570,000		1.610			07/03/08		570,000
New York State Dormitory Authority VRDN RB Secondary Issues ROCS RR II R-11186 Series 2007 (Citibank N.A. SPA) (A-1+)(a)
	4,800,000		1.540			07/03/08		4,800,000

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

34

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
New York (continued)
New York State Dormitory Authority VRDN RB Secondary Issues ROCS RR II R-12040 Series 2007 (Citigroup Financial Products) (A-1+)(a)
$	3,000,000		1.550	%		07/03/08	$	3,000,000
New York State Dormitory Authority VRDN RB Secondary Issues Series 2007-1861 (Wells Fargo Bank) (A-1)(a)
	3,545,000		1.520			07/03/08		3,545,000
New York State Energy Research and Development Authority VRDN RB Edison Subseries 2005 A-1 (Wachovia Bank N.A. LOC) (A-1+/ VMIG1)
	600,000		1.420			07/02/08		600,000
New York State Energy Research and Development Authority VRDN RB Edison Subseries 2005 A-3 (Wachovia Bank N.A. LOC) (A-1+/ VMIG1)
	900,000		1.500			07/02/08		900,000
New York State Environmental CP Series 1997 A (Bayerische Landesbank LOC and Landesbank Hessen-Thueringen LOC) (A-1+/ VMIG1)
	3,000,000		1.350			07/07/08		3,000,000
	3,600,000		1.400			07/07/08		3,600,000
	5,500,000		1.580			11/06/08		5,500,000
New York State Environmental Facilities Corp. Personal Income Tax Revenue Floater Series 2008 DCL-043 (Dexia Credit Local) (A-1+)(c)
	2,950,000		1.950			10/02/08		2,950,000
New York State Environmental Facilities Corp. Street Cleaning Water & Drinking VRDN RB MERLOTs Series 2008 D82 (Wachovia Bank N.A. SPA) (VMIG1)(a)
	1,000,000		1.610			07/02/08		1,000,000
New York State Housing Finance Agency Service Contract VRDN RB Refunding Series 2003 B (BNP Paribas LOC) (A-1+)
	2,000,000		1.450			07/02/08		2,000,000
New York State Housing Finance Agency Service Contract VRDN RB Refunding Series 2003 I (Landesbank Hessen-Thueringen LOC) (A-1+)
	1,700,000		1.500			07/02/08		1,700,000
New York State Housing Finance Agency VRDN RB 100 Maiden Lane Series 2004 A RMKT 08/02/07 (FNMA) (VMIG1)
	11,500,000		1.500			07/02/08		11,500,000
New York State Housing Finance Agency VRDN RB for 20 River Terrace Housing Series 2002 A RMKT 05/27/04 (FNMA) (VMIG1)
	1,900,000		1.580			07/02/08		1,900,000
New York State Housing Finance Agency VRDN RB for Historic Front Street Housing Series 2003 A (Bank of New York LOC) (VMIG1)
	6,300,000		1.430			07/02/08		6,300,000
New York State Housing Finance Agency VRDN RB for North End Series 2004 A RMKT 11/09/06 (FNMA) (VMIG1)
	5,500,000		1.450			07/02/08		5,500,000
New York State Housing Finance Agency VRDN RB for Tribeca Green Housing Series 2003 A (Landesbank Hessen-Thueringen LOC) (VMIG1)(b)
	5,795,000		1.700			07/02/08		5,795,000
New York State Local Government Assistance Corp. RB Refunding Senior Lien Series 2008 A (AAA/ Aa3)
	5,000,000		5.000			04/01/09		5,102,560
New York State Local Government Assistance Corp. VRDN RB Refunding Sub Lien Series 2003 4V (FSA) (Westdeutsche Landesbank AG SPA) (A-1+)
	2,200,000		1.450			07/02/08		2,200,000
New York State Local Government Assistance Corp. VRDN RB Refunding Sub Lien Series 2003 A-6V (FSA) (KBC Bank NV SPA) (A-1+)
	4,245,000		1.450			07/02/08		4,245,000
New York State Local Government Assistance Corp. VRDN RB Series 1993 A (Bayerische Landesbank and Westdeutsche Landesbank AG LOC) (A-1+/ VMIG1)
	9,050,000		1.400			07/02/08		9,050,000
New York State Local Government Assistance Corp. VRDN RB Series 1995 C (Landesbank Hessen-Thueringen SPA) (A-1+/VMIG1)
	500,000		1.300			07/02/08		500,000
New York State Power Authority CP Series 2 (Bank of Nova Scotia, Bank of New York, JPMorgan Chase & Co., State Street Bank and Trust, Bayerische Landesbank, Landesbank Baden-Wurrtemberg, and BNP Paribas SPA) (P-1/ A-1)
	5,500,000		1.400			07/08/08		5,500,000
	10,000,000		1.670			08/27/08		10,000,000
New York State Thruway Authority General VRDN RB Putters Series 2008-2551 (FSA) (JPMorgan Chase & Co.) (A-1+)(a)
	1,665,000		1.610			07/03/08		1,665,000
New York State Thruway Authority Highway and Bridge Trust Fund VRDN RB Floaters Series 2008-2527 (Morgan Stanley Municipal Products) (A-1+)(a)
	2,619,500		1.530			07/03/08		2,619,500
New York State Thruway Authority Personal Income Tax VRDN RB Putters Series 2008-2987 (JPMorgan Chase & Co.) (A-1+)(a)
	4,710,000		1.580			07/03/08		4,710,000
New York State Thruway Authority Personal Income Tax VRDN RB ROCS RR-II-R-11237 Series 2007 (Citibank N.A. SPA) (A-1+)(a)
	9,735,000		1.550			07/03/08		9,735,000
New York State Thruway Authority RB for Bridge Service Contract Refunding Series 2008 (AA-)
	1,600,000		4.000			04/01/09		1,624,796
New York State Urban Development Corp. Puttable Floating Option Tax-Exempt Receipts VRDN RB P-Floats-PT-4497 Series 2008 (Merrill Lynch Capital Services SPA) (A-1)(a)
	5,400,000		1.550			07/03/08		5,400,000

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

35

Schedule of Investments

ILA Tax-Exempt New York Portfolio (continued)

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
New York (continued)
Port Authority of New York & New Jersey VRDN RB Eagle Series 2007-0110 A (FSA) (Banco Bilbao) (A-1+)(a)
$	5,000,000		1.640	%		07/03/08	$	5,000,000
Port Authority of New York & New Jersey VRDN RB Putters Series 1546 (JPMorgan Chase & Co. SPA) (A-1+)(a)
	2,000,000		1.580			07/03/08		2,000,000
Port Authority of New York & New Jersey VRDN RB Putters Series 2008-2449 (PNC National Bank) (A-1+)(a)
	2,620,000		1.580			07/03/08		2,620,000
Port Authority of New York & New Jersey VRDN RB ROCS RR II R-11439 Series 2008 (FSA) (Citibank N.A.) (A-1+)(a)
	3,200,000		1.580			07/03/08		3,200,000
Suffolk County GO Bonds Public Improvement Series 2007 B (MBIA) (AA/ Aa3)
	3,535,000		4.000			11/01/08		3,542,759
Triborough Bridge & Tunnel Authority VRDN RB Putters Series 2008-2763 (JPMorgan Chase & Co.) (A-1+/ VMIG1)(a)
	1,000,000		1.580			07/03/08		1,000,000
Triborough Bridge & Tunnel Authority VRDN RB Refunding Subseries 2005 B-1 (DePfa Bank PLC SPA) (A-1/ VMIG1)
	13,400,000		1.440			07/03/08		13,400,000
Triborough Bridge & Tunnel Authority VRDN RB Series 2003 B (Dexia Credit Local SPA) (A-1+/ VMIG1)
	7,000,000		1.440			07/02/08		7,000,000
Westchester County GO Bonds Series 2007 B (AAA/ Aaa)
	2,100,000		4.000			11/15/08		2,105,440
							$	413,433,129
Puerto Rico—2.5%
Commonwealth of Puerto Rico TRANS Series 2007 (Bank of Nova Scotia, BNP Paribas, Dexia Credit Local, Fortis Bank, Banco Bilbao, KBC Bank N.V. and Banco Santander Central Hispano LOC) (SP-1+/ MIG1)
$	10,500,000		4.250	%		07/30/08	$	10,506,930
Total Investments—100.1%							$	423,940,059
Liabilities in Excess of Other Assets—(0.1)%								(262,934	)
Net Assets—100.0%							$	423,677,125

The percentage shown for each investment 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, 2008, these securities amounted to $136,856,500 or approximately 32.3% of net assets.
(b)	All or a portion represents a forward commitment.
(c)	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, 2008, these securities amounted to $2,950,000 or approximately 0.7% of net assets.

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.

Securities 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.

36

Investment Abbreviations:

BHAC	—	Berkshire Hathaway Assurance Corp.
CP	—	Commercial Paper
FNMA	—	Insured by Federal National Mortgage Association
FSA	—	Insured by Financial Security Assurance Co.
GO	—	General Obligation
LOC	—	Letter of Credit
MERLOTs	—	Municipal Exempt Receipts Liquidity Optional Tenders
MBIA	—	Insured by Municipal Bond Investors Assurance
MF Hsg.	—	Multi-Family Housing
RANS	—	Revenue Anticipation Notes
RB	—	Revenue Bond
RMKT	—	Remarketed
ROCS	—	Reset Option Certificates
RR	—	Revenue Refunding
SPA	—	Stand-by Purchase Agreement
TRANS	—	Tax Revenue Anticipation Notes
VRDN	—	Variable Rate Demand Notes

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

37

Schedule of Investments

ILA Treasury Instruments Portfolio

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
U.S. Treasury Obligations—102.3%
United States Treasury Bills
$	1,800,000		0.400	%		07/03/08	$	1,799,960
	109,800,000		0.550			07/03/08		109,796,645
	9,000,000		0.600			07/03/08		8,999,700
	2,900,000		1.750			07/03/08		2,899,718
	101,400,000		1.870			07/03/08		101,389,466
	6,000,000		1.875			07/03/08		5,999,375
	500,000		1.140			07/10/08		499,858
	3,000,000		1.150			07/10/08		2,999,138
	9,000,000		1.155			07/10/08		8,997,401
	1,000,000		1.160			07/10/08		999,710
	1,000,000		1.185			07/10/08		999,704
	6,800,000		1.400			07/10/08		6,797,620
	4,300,000		1.440			07/10/08		4,298,452
	14,500,000		1.610			07/10/08		14,494,164
	7,000,000		1.630			07/10/08		6,997,148
	29,600,000		1.840			07/10/08		29,586,384
	25,000,000		1.860			07/10/08		24,988,375
	10,000,000		1.880			07/10/08		9,995,300
	25,000,000		1.970			07/10/08		24,987,687
	30,000,000		1.985			07/10/08		29,985,112
	5,000,000		1.300			07/17/08		4,997,111
	6,000,000		1.420			07/24/08		5,994,557
	25,000,000		1.450			07/24/08		24,976,840
	6,000,000		1.550			07/24/08		5,994,058
	81,000,000		1.590			07/24/08		80,917,717
	3,000,000		1.415			07/31/08		2,996,463
	15,000,000		1.430			07/31/08		14,982,125
	10,000,000		1.445			07/31/08		9,987,958
	9,000,000		1.600			08/07/08		8,985,200
	5,000,000		1.610			08/07/08		4,991,726
	8,000,000		1.615			08/07/08		7,986,721
	10,900,000		1.795			08/14/08		10,876,087
	24,000,000		1.845			08/21/08		23,937,270
	8,000,000		1.855			08/21/08		7,978,977
	28,100,000		1.865			09/04/08		28,005,377
	25,000,000		1.875			09/04/08		24,915,365
	4,000,000		1.850			09/18/08		3,983,761
	38,000,000		1.865			09/18/08		37,844,480
	30,000,000		1.885			09/18/08		29,875,904
	12,000,000		1.890			09/18/08		11,950,230
	15,000,000		1.930			09/18/08		14,936,471
	15,000,000		1.940			09/18/08		14,936,142
	6,000,000		1.955			09/18/08		5,974,259
	6,000,000		1.960			09/18/08		5,974,193
	3,000,000		1.970			09/18/08		2,987,031
	18,000,000		1.985			09/18/08		17,921,592
	29,000,000		1.990			09/18/08		28,873,359
	33,000,000		2.035			09/18/08		32,852,632
	6,000,000		1.805			09/25/08		5,974,128
	2,000,000		1.750			10/02/08		1,990,958
	19,700,000		1.909	%(a)		10/02/08		19,605,385
	12,000,000		2.340			12/18/08		11,867,400
Total Investments—102.3%							$	913,582,394
Liabilities in Excess of Other Assets—(2.3)%								(20,298,884	)
Net Assets—100.0%							$	893,283,510

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

^(a) All or a portion represents a forward commitment.

Interest rates represent the annualized yield on date of purchase for discounted securities.

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

38

Schedule of Investments

ILA Treasury Obligations Portfolio

June 30, 2008 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
U.S. Treasury Obligations—5.4%
United States Treasury Bills
$	15,000,000		1.865	%		09/18/08	$	14,938,611
	10,000,000		2.050			12/11/08		9,907,181
	10,000,000		2.340			12/18/08		9,889,500
	9,500,000		2.355			12/18/08		9,394,352
	10,000,000		2.530			06/04/09		9,762,461
United States Treasury Note
	5,000,000		5.000			07/31/08		5,002,179
Total Investments Before Repurchase Agreements							$	58,894,284
Repurchase Agreements(a)—89.7%
Deutsche Bank Securities, Inc.
$	70,000,000		2.020	%		07/01/08	$	70,000,000
Maturity Value: $70,003,928
Collateralized by U.S. Treasury Bond, 8.875%, due 08/15/17 and U.S. Treasury Note, 4.125%, due 08/31/12. The aggregate market value of the collateral, including accrued interest, was $71,400,116.
Joint Repurchase Agreement Account I
	797,700,000		1.626			07/01/08		797,700,000
Maturity Value: $797,736,029
Lehman Brothers Holdings, Inc.
	50,000,000		1.500			07/01/08		50,000,000
Maturity Value: $50,002,083
Collateralized by U.S. Treasury Bill, 0.000%, due 12/26/08. The market value of the collateral, including accrued interest, was $51,003,161.
UBS Securities LLC
	68,600,000		1.750			07/01/08		68,600,000
Maturity Value: $68,603,335
Collateralized by U.S. Treasury STRIPS, 0.000%, due 05/15/10 to 05/15/13. The aggregate market value of the collateral, including accrued interest, was $69,975,557.
Total Repurchase Agreements							$	986,300,000
Total Investments—95.1%							$	1,045,194,284
Other Assets in Excess of Liabilities—4.9%								53,748,525
Net Assets—100.0%							$	1,098,942,809

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 30, 2008. Additional information on Joint Repurchase Agreement Account I appears on page 40.

Interest rates represent the annualized yield on date of purchase for discounted securities.

Investment Abbreviation:

STRIP S — Separate Trading of Registered Interest and Principal of Securities

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

39

Schedule of Investments

ILA Portfolios

June 30, 2008 (Unaudited)

ADDITIONAL INVESTMENT INFORMATION

Joint Repurchase Agreement Account I—At June 30, 2008, the Treasury Obligations Portfolio had an undivided interest in the following Joint Repurchase Agreement Account I which equaled $797,700,000 in principal amount.

Repurchase Agreements	Principal		Interest		Maturity		Maturity
Counterparty	Amount		Rate		Date		Value
ABN Amro, Inc.	$	1,500,000,000		1.65%		07/01/08	$	1,500,068,750
Banc of America Securities LLC		1,518,700,000		1.65		07/01/08		1,518,769,607
Barclays Capital, Inc.		75,000,000		1.80		07/01/08		75,003,750
Deutsche Bank Securities, Inc.		1,225,000,000		1.75		07/01/08		1,225,059,549
Deutsche Bank Securities, Inc.		200,000,000		1.74		07/01/08		200,009,667
Greenwich Capital Markets		500,000,000		1.85		07/01/08		500,025,694
JPMorgan Securities		2,500,000,000		1.75		07/01/08		2,500,121,528
Merrill Lynch & Co., Inc.		4,000,000,000		1.45		07/01/08		4,000,161,111
Morgan Stanley & Co.		250,000,000		1.70		07/01/08		250,011,805
TOTAL							$	11,769,231,461

At June 30, 2008, the Joint Repurchase Agreement Account I was fully collateralized by U.S. Treasury Inflation Protected Securities, 0.875% to 3.875%, due 01/15/09 to 01/15/18, U.S. Treasury Interest-Only Stripped Securities, 0.000%, due 05/15/09 to 02/15/38, U.S. Treasury Notes, 2.000% to 11.750%, due 08/15/08 to 05/15/18 and U.S. Treasury Principal-Only Stripped Securities, 0.000%, due 07/31/08 to 05/15/30. The aggregate market value of the collateral, including accrued interest, was $12,004,082,686.

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

40

ADDITIONAL INVESTMENT INFORMATION (continued)

Joint Repurchase Agreement Account II—At June 30, 2008, certain Portfolios had undivided interests in the Joint Repurchase Agreement Account II, as follows:

	Principal
Portfolio	Amount
Money Market	$	137,100,000
Prime Obligations		233,600,000

Repurchase Agreements	Principal		Interest		Maturity		Maturity
Counterparty	Amount		Rate		Date		Value
ABN Amro, Inc.	$	2,000,000,000		2.75%		07/01/08	$	2,000,152,778
Banc of America Securities LLC		3,945,000,000		2.65		07/01/08		3,945,290,396
Banc of America Securities LLC		500,000,000		2.25		07/01/08		500,031,250
Barclays Capital, Inc.		2,100,000,000		2.70		07/01/08		2,100,157,500
Credit Suisse Securities (USA) LLC		180,000,000		2.55		07/01/08		180,012,750
Deutsche Bank Securities, Inc.		3,500,000,000		2.70		07/01/08		3,500,262,500
Greenwich Capital Markets		375,000,000		2.75		07/01/08		375,028,646
JPMorgan Securities		2,500,000,000		2.70		07/01/08		2,500,187,500
Lehman Brothers Holdings, Inc.		4,423,900,000		2.65		07/01/08		4,424,225,648
Merrill Lynch & Co., Inc.		1,000,000,000		2.50		07/01/08		1,000,069,444
Morgan Stanley & Co.		500,000,000		2.50		07/01/08		500,034,722
UBS Securities LLC		4,000,000,000		2.70		07/01/08		4,000,300,000
TOTAL							$	25,025,753,134

At June 30, 2008, the Joint Repurchase Agreement Account II was fully collateralized by Federal Home Loan Bank, 2.270% to 3.500%, due 04/14/09 to 02/05/10; Federal Home Loan Mortgage Corp., 4.000% to 16.250%, due 11/01/08 to 04/01/38; Federal National Mortgage Association, 3.150% to 16.000%, due 07/01/08 to 07/01/48 and Government National Mortgage Association, 6.000%, due 01/15/38. The aggregate market value of the collateral, including accrued interest, was $25,578,123,127.

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

41

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Statements of Assets and Liabilities

June 30, 2008 (Unaudited)

						Money			Prime
			Federal			Market			Obligations
			Portfolio			Portfolio			Portfolio
Assets:
Investments in securities, at value based on amortized cost			$	2,620,271,937		$	353,683,730		$	543,651,214
Repurchase agreements, at value based on amortized cost				—			137,100,000			233,600,000
Cash				44,123			—			51,707
Receivables:
		Investment securities sold		—			—			—
		Interest		6,708,135			843,709			871,938
		Portfolio units/shares sold		—			7,416,121			—
		Reimbursement from investment adviser		—			—			—
Other assets				9,599			—			6,266
	Total assets			2,627,033,794			499,043,560			778,181,125
Liabilities:
Due to Custodian				—			12,993			—
Payables:
		Investment securities purchased		18,000,000			—			—
		Amounts owed to affiliates		849,621			181,117			314,651
		Dividend distribution		88,515			31,083			141,463
		Portfolio units/shares redeemed		—			65,476			—
Accrued expenses				593,082			118,090			277,972
	Total liabilities			19,531,218			408,759			734,086
Net Assets:
Paid-in capital				2,607,215,512			498,632,015			777,433,539
Undistributed (distributions in excess of) net investment income				(155,470	)		(1,018	)		15,042
Accumulated net realized gain (loss) from investment transactions				442,534			3,804			(1,542	)
	Net assets		$	2,607,502,576		$	498,634,801		$	777,447,039
Net asset value, offering and redemption price per unit/share				$1.00			$1.00			$1.00
Net Assets:
ILA Units			$	81,862,533		$	451,400,293		$	123,199,667
ILA Administration Units				2,083,605,536			12,212,736			88,536,446
ILA Service Units				78,367,814			35,020,650			456,404,429
ILA Class B Units				—			—			27,749,138
ILA Class C Units				—			—			51,659,075
ILA Cash Management Shares				363,666,693			1,122			29,898,284
Total Net Assets			$	2,607,502,576		$	498,634,801		$	777,447,039
Units/Shares outstanding, $0.001 par value (unlimited number of units/shares authorized):
ILA Units				81,853,518			451,397,776			123,197,526
ILA Administration Units				2,083,376,171			12,212,667			88,534,909
ILA Service Units				78,359,179			35,020,451			456,392,912
ILA Class B Units				—			—			27,748,688
ILA Class C Units				—			—			51,657,700
ILA Cash Management Shares				363,626,644			1,121			29,897,765

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

42

Tax-Exempt		Tax-Exempt			Tax-Exempt			Treasury			Treasury
California		Diversified			New York			Instruments			Obligations
Portfolio		Portfolio			Portfolio			Portfolio			Portfolio
$	645,855,413	$	1,180,610,366		$	423,940,059		$	913,582,394		$	58,894,284
	—		—			—			—			986,300,000
	41,717,803		8,422,822			1,090,749			25,242			19,260
	—		103,000			—			—			54,891,193
	2,041,608		5,312,220			1,761,599			—			244,200
	—		—			—			—			—
	667		—			28,859			—			—
	3,591		16,755			1,862			982			4,340
	689,619,082		1,194,465,163			426,823,128			913,608,618			1,100,353,277
	—		—			—			—			—
	33,304,055		44,057,618			2,900,065			19,605,385			—
	214,462		402,948			142,168			251,902			341,920
	69,483		32,355			2,635			223,936			672,183
	—		756			—			—			—
	79,544		217,958			101,135			243,885			396,365
	33,667,544		44,711,635			3,146,003			20,325,108			1,410,468
	655,833,377		1,149,604,476			423,599,466			893,369,076			1,099,029,666
	—		(2,317	)		(2,774	)		40,134			193,682
	118,161		151,369			80,433			(125,700	)		(280,539	)
$	655,951,538	$	1,149,753,528		$	423,677,125		$	893,283,510		$	1,098,942,809
	$1.00		$1.00			$1.00			$1.00			$1.00
$	214,156,129	$	150,144,842		$	57,662,395		$	8,108,154		$	39,474,121
	441,419,432		980,310,787			365,938,098			462,356,004			254,281,478
	374,945		18,426,812			75,603			416,237,948			536,990,299
	—		—			—			—			—
	—		—			—			—			—
	1,032		871,087			1,029			6,581,404			268,196,911
$	655,951,538	$	1,149,753,528		$	423,677,125		$	893,283,510		$	1,098,942,809
	214,101,552		150,097,947			57,650,711			8,108,931			39,477,231
	441,306,958		980,004,565			365,864,029			462,400,273			254,301,558
	374,849		18,421,052			75,589			416,277,838			537,032,682
	—		—			—			—			—
	—		—			—			—			—
	1,032		870,814			1,029			6,582,034			268,218,195

43

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Statements of Operations

For the Six Months Ended June 30, 2008 (Unaudited)

						Money			Prime
			Federal			Market			Obligations
			Portfolio			Portfolio			Portfolio
Investment income:
Interest income			$	41,044,613		$	8,069,936		$	12,721,350
Expenses:
Portfolio-Level Expenses:
	Management fees			4,583,024			834,688			1,325,370
	Transfer Agent fees			523,774			95,393			151,471
	Custody and accounting fees			114,489			35,770			47,455
	Registration fees			43,104			27,350			56,929
	Professional fees			34,112			37,670			40,822
	Printing fees			25,538			6,357			10,405
	Trustee fees			7,436			7,436			7,436
	Other			39,375			2,581			18,778
		Subtotal		5,370,852			1,047,245			1,658,666
Class Specific Expenses:
	Administration Unit fees			1,640,853			9,405			72,680
	Service Unit fees			159,875			95,736			886,781
	Distribution fees—Cash Management Shares			688,373			3			72,415
	Cash Management Share fees			688,373			3			72,415
	Distribution and Service fees—Class B and Class C Units			—			—			384,771
		Total expenses		8,548,326			1,152,392			3,147,728
		Less—expense reductions		(605,568	)		(12,863	)		(83,507	)
		Net expenses		7,942,758			1,139,529			3,064,221
Net investment income				33,101,855			6,930,407			9,657,129
Net realized gain (loss) from investment transactions				488,955			3,804			17,601
Net increase in net assets resulting from operations			$	33,590,810		$	6,934,211		$	9,674,730

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

44

Tax-Exempt			Tax-Exempt			Tax-Exempt			Treasury			Treasury
California			Diversified			New York			Instruments			Obligations
Portfolio			Portfolio			Portfolio			Portfolio			Portfolio
$	7,342,222		$	12,915,371		$	4,403,736		$	5,967,257		$	10,531,513
	1,182,341			2,036,981			701,536			1,228,311			1,548,915
	135,125			232,798			80,176			140,378			177,019
	51,029			76,910			41,387			58,342			61,806
	16,839			29,816			11,876			16,534			33,513
	34,738			43,387			62,577			37,697			38,227
	11,028			17,642			4,863			9,209			7,099
	7,436			7,436			7,436			7,436			7,436
	10,367			13,855			5,261			10,291			14,162
	1,448,903			2,458,825			915,112			1,508,198			1,888,177
	370,204			726,256			259,247			303,284			61,966
	228			39,717			193			563,091			967,763
	2			1,932			2			17,118			653,602
	2			1,932			2			17,118			653,602
	—			—			—			—			—
	1,819,339			3,228,662			1,174,556			2,408,809			4,225,110
	(25,520	)		(36,982	)		(61,750	)		(30,184	)		(562,215	)
	1,793,819			3,191,680			1,112,806			2,378,625			3,662,895
	5,548,403			9,723,691			3,290,930			3,588,632			6,868,618
	114,822			106,188			59,105			303,542			(111,392	)
$	5,663,225		$	9,829,879		$	3,350,035		$	3,892,174		$	6,757,226

45

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Statements of Changes in Net Assets

		Federal Portfolio
		For the
		Six Months
		Ended			For the
		June 30, 2008			Year Ended
		(Unaudited)			December 31, 2007
From operations:
Net investment income		$	33,101,855		$	90,351,001
Net realized gain (loss) from investment transactions			488,955			103,190
	Net increase in net assets resulting from operations		33,590,810			90,454,191
Distributions to units/shareholders:
From net investment income
	ILA Units		(1,031,046	)		(2,296,548	)
	ILA Administration Units		(28,619,031	)		(81,827,453	)
	ILA Service Units		(971,137	)		(4,876,533	)
	ILA Class B Units		—			—
	ILA Class C Units		—			—
	ILA Cash Management Shares		(2,706,244	)		(1,431,565	)
From net realized gains
	ILA Units		—			—
	ILA Administration Units		—			—
	ILA Service Units		—			—
	ILA Cash Management Shares		—			—
	Total distributions to unit/shareholders		(33,327,458	)		(90,432,099	)
From units/share transactions (at $1.00 per unit/share):
Proceeds from sales of units/shares			2,721,444,506			4,066,200,277
Proceeds received in connection with merger			—			—
Reinvestment of dividends and distributions			32,523,840			88,111,960
Cost of units/shares redeemed			(2,437,651,270	)		(3,845,299,187	)
	Net increase (decrease) in net assets resulting from share transactions		316,317,076			309,013,050
Net increase (decrease)			316,580,428			309,035,142
Net assets:
Beginning of period			2,290,922,148			1,981,887,006
End of period		$	2,607,502,576		$	2,290,922,148
Undistributed (distributions in excess of) net investment income		$	(155,470	)	$	70,133

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

46

Money Market Portfolio						Prime Obligations Portfolio						Tax-Exempt California Portfolio
For the						For the						For the
Six Months						Six Months						Six Months
Ended			For the			Ended			For the			Ended			For the
June 30, 2008			Year Ended			June 30, 2008			Year Ended			June 30, 2008			Year Ended
(Unaudited)			December 31, 2007			(Unaudited)			December 31, 2007			(Unaudited)			December 31, 2007
$	6,930,407		$	20,654,849		$	9,657,129		$	32,700,194		$	5,548,403		$	16,991,317
	3,804			721			17,601			(1,657	)		114,822			47,721
	6,934,211			20,655,570			9,674,730			32,698,537			5,663,225			17,039,038
	(6,140,218	)		(16,166,340	)		(1,604,054	)		(9,157,871	)		(1,543,283	)		(4,358,918	)
	(177,797	)		(516,010	)		(1,361,306	)		(4,053,876	)		(4,004,643	)		(12,632,319	)
	(613,397	)		(3,973,168	)		(5,605,196	)		(16,376,304	)		(470	)		(47	)
	—			—			(269,576	)		(725,335	)		—			—
	—			—			(475,805	)		(1,389,299	)		—			—
	(13	)		(52	)		(345,290	)		(995,855	)		(7	)		(33	)
	—			—			—			—			—			(10,843	)
	—			—			—			—			—			(33,539	)
	—			—			—			—			—			—
	—			—			—			—			—			—
	(6,931,425	)		(20,655,570	)		(9,661,227	)		(32,698,540	)		(5,548,403	)		(17,035,699	)
	625,696,546			1,249,880,588			1,100,389,182			2,327,701,446			2,223,378,974			3,804,253,403
	—			—			—			120,763,136			—			—
	6,615,100			19,237,105			8,462,316			28,509,441			5,075,160			15,735,025
	(586,883,373	)		(1,375,366,871	)		(1,075,970,714	)		(2,405,695,010	)		(2,243,532,791	)		(3,700,264,690	)
	45,428,273			(106,249,178	)		32,880,784			71,279,013			(15,078,657	)		119,723,738
	45,431,059			(106,249,178	)		32,894,287			71,279,010			(14,963,835	)		119,727,077
	453,203,742			559,452,920			744,552,752			673,273,742			670,915,373			551,188,296
$	498,634,801		$	453,203,742		$	777,447,039		$	744,552,752		$	655,951,538		$	670,915,373
$	(1,018	)	$	—		$	15,042		$	19,140		$	—		$	—

47

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Statements of Changes in Net Assets

		Tax-Exempt Diversified Portfolio
		For the
		Six Months
		Ended			For the
		June 30, 2008			Year Ended
		(Unaudited)			December 31, 2007
From operations:
Net investment income		$	9,723,691		$	24,486,039
Net realized gain (loss) from investment transactions			106,188			170,879
	Net increase in net assets resulting from operations		9,829,879			24,656,918
Distributions to units/shareholders:
From net investment income
	ILA Units		(1,603,474	)		(4,697,710	)
	ILA Administration Units		(7,972,040	)		(19,135,362	)
	ILA Service Units		(143,397	)		(603,798	)
	ILA Cash Management Shares		(4,780	)		(49,169	)
From net realized gains
	ILA Units		—			(20,069	)
	ILA Administration Units		—			(102,408	)
	ILA Service Units		—			(3,002	)
	ILA Cash Management Shares		—			(219	)
	Total distributions to unit/shareholders		(9,723,691	)		(24,611,737	)
From units/share transactions (at $1.00 per unit/share):
Proceeds from sales of units/shares			4,068,119,486			5,388,870,889
Reinvestment of dividends and distributions			9,412,164			22,910,126
Cost of units/shares redeemed			(3,821,210,844	)		(5,221,635,013	)
	Net increase (decrease) in net assets resulting from share transactions		256,320,806			190,146,002
Net increase (decrease)			256,426,994			190,191,183
Net assets:
Beginning of period			893,326,534			703,135,351
End of period		$	1,149,753,528		$	893,326,534
Undistributed (distributions in excess of) net investment income		$	(2,317	)	$	(2,317	)

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

48

Tax-Exempt New York Portfolio						Treasury Instruments Portfolio						Treasury Obligations Portfolio
For the						For the						For the
Six Months						Six Months						Six Months
Ended			For the			Ended			For the			Ended			For the
June 30, 2008			Year Ended			June 30, 2008			Year Ended			June 30, 2008			Year Ended
(Unaudited)			December 31, 2007			(Unaudited)			December 31, 2007			(Unaudited)			December 31, 2007
$	3,290,930		$	10,499,398		$	3,588,632		$	12,774,070		$	6,868,618		$	27,737,673
	59,105			36,945			303,542			480,524			(111,392	)		77,630
	3,350,035			10,536,343			3,892,174			13,254,594			6,757,226			27,815,303
	(497,765	)		(1,637,832	)		(67,899	)		(235,007	)		(406,236	)		(1,514,386	)
	(2,793,707	)		(8,847,763	)		(2,179,291	)		(1,332,456	)		(667,601	)		(180,349	)
	(780	)		(12,877	)		(1,306,271	)		(11,071,157	)		(3,851,685	)		(21,077,797	)
	(7	)		(926	)		(35,171	)		(135,450	)		(1,974,185	)		(4,987,147	)
	—			(2,676	)		(6,045	)		(7,908	)		—			—
	—			(12,918	)		(306,237	)		(61,990	)		—			—
	—			(23	)		(112,644	)		(371,645	)		—			—
	—			—			(4,316	)		(4,638	)		—			—
	(3,292,259	)		(10,515,015	)		(4,017,874	)		(13,220,251	)		(6,899,707	)		(27,759,679	)
	1,951,569,959			2,321,520,992			1,521,460,032			1,096,110,239			1,781,256,943			2,787,181,226
	3,267,751			10,201,992			2,547,152			1,621,898			2,414,858			2,774,632
	(1,841,335,895	)		(2,391,904,911	)		(934,689,367	)		(985,070,514	)		(1,537,383,045	)		(2,669,246,995	)
	113,501,815			(60,181,927	)		589,317,817			112,661,623			246,288,756			120,708,863
	113,559,591			(60,160,599	)		589,192,117			112,695,966			246,146,275			120,764,487
	310,117,534			370,278,133			304,091,393			191,395,427			852,796,534			732,032,047
$	423,677,125		$	310,117,534		$	893,283,510		$	304,091,393		$	1,098,942,809		$	852,796,534
$	(2,774	)	$	(1,445	)	$	40,134		$	40,134		$	193,682		$	224,771

49

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Notes to Financial Statements

June 30, 2008 (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: Federal, Money Market, Prime Obligations, Tax-Exempt California, Tax-Exempt Diversified, Tax-Exempt New York, Treasury Instruments and Treasury Obligations 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. Goldman Sachs Asset Management, L.P., (“GSAM”), an affiliate of Goldman, Sachs & Co. (“Goldman Sachs”), serves as Investment Adviser pursuant to a Management Agreement (the “Agreement”) with the Trust on behalf of the Portfolios.

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 (“GAAP”) 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.

50

2.  SIGNIFICANT ACCOUNTING POLICIES (continued)

B. Security Transactions and Interest Income—

Security transactions are reflected for financial reporting purposes 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 accumulated 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 and Distributions to Unit/ Shareholders—

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. Long-term 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 GAAP.

   As of December 31, 2007, the following Portfolios had a capital loss carryforward for U.S. Federal tax purposes of:

			Prime		Treasury
	Federal		Obligations		Obligations
Capital Loss Carryforward(1)
Expiring 2013	$	—	$	7,608	$	85,716
Expiring 2014		46,421		9,878		84,431
Expiring 2015		—		1,657		—
Capital loss carryforward	$	46,421	$	19,143	$	169,147

⁽¹⁾  Expiration occurs on December 31 of the year indicated.

   The above amounts are available to be carried forward to offset any future capital gains to the extent allowed by the Code.

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

   The Portfolios adopted Financial Accounting Standards Board (“FASB”) Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 establishes financial accounting and disclosure requirements for recognition and measurement of tax positions taken or expected to be taken on an income tax return. GSAM has reviewed the tax positions for open tax years (tax years ended December 31, 2004-2007) and has determined that the implementation of FIN 48 did not have a material impact on the Portfolios’ financial statements.

51

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Notes to Financial Statements (continued)

June 30, 2008 (Unaudited)

2.  SIGNIFICANT ACCOUNTING POLICIES (continued)

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.

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 agreements with 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. In addition, the Portfolios’ credit exposure is allocated to the underlying repurchase counterparties on a pro-rata basis. With the exception of certain transaction fees, the Portfolios are not subject to any expenses in relation to these investments.

3. AGREEMENTS

A. Management Agreement—

Under the Agreement, GSAM manages the Portfolios, subject to the general supervision of the Trust’s Board of Trustees.

52

3. AGREEMENTS (continued)

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

B. Distribution Agreement and Service Plan—

The Trust, on behalf of the Prime Obligations Portfolio for 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 (“CMS”). 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 of the ILA Prime Obligations Class B and Class C Units’ contingent deferred sales charges. During the six months ended June 30, 2008, Goldman Sachs has advised the Portfolio that it retained approximately $100 and $5,600 in contingent deferred sales charges from Class B and Class C Units, respectively.

C. Transfer Agency Agreement—

Goldman Sachs also serves as the Transfer Agent for the Portfolios and is entitled to a fee calculated daily and payable monthly at an annual rate of 0.04% of the average daily net assets of each class.

D. Service Plan and Shareholder Administration Plan—

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/shares. 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, of the average daily net asset value of the Administration Units, Service Units and Cash Management Shares, respectively.

E. Other Agreements—

GSAM has voluntarily agreed to reduce or limit the total operating expenses of each Portfolio (excluding Distribution and Service fees, Administration, Service plan and Shareholder Administration plan fees, taxes, interest, brokerage fees and litigation,

53

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Notes to Financial Statements (continued)

June 30, 2008 (Unaudited)

3. AGREEMENTS (continued)

indemnification, shareholder meeting and other extraordinary expenses, exclusive of any custody and transfer agency 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, 2008, 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):

	Other						CMS
	Expense		Custody		Transfer		Share
	Reimburse-		Fee		Agent Fee		Distribution
Portfolio	ments		Reductions		Reductions		Fee Waiver		Total
Federal	$	—	$	14	$	—	$	592	$	606
Money Market		12		1		—		—		13
Prime Obligations		15		1		6		62		84
Tax-Exempt California		—		26		—		—		26
Tax-Exempt Diversified		—		35		—		2		37
Tax-Exempt New York		45		17		—		—		62
Treasury Instruments		—		15		—		15		30
Treasury Obligations		—		3		—		559		562

   At June 30, 2008, the amounts owed to GSAM and its affiliates were as follows (in thousands):

							Affiliated
			Distribution		Transfer		Dealers		Over
	Management		and Service		Agent		Service		Reimburse-
Portfolio	Fees		Fees		Fees		Fees		ment		Total
Federal	$	580	$	20	$	85	$	165	$	—	$	850
Money Market		141		—		16		—		24		181
Prime Obligations		196		65		25		23		6		315
Tax-Exempt California		155		—		22		37		—		214
Tax-Exempt Diversified		276		—		41		86		—		403
Tax-Exempt New York		97		—		14		31		—		142
Treasury Instruments		189		—		26		37		—		252
Treasury Obligations		281		15		33		13		—		342

4. PORTFOLIO SECURITIES TRANSACTIONS

Fair Value Hierarchy—In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”) which provides guidance in using fair value to measure investment assets and liabilities. The Funds adopted FAS 157 as of the beginning of January 2008. FAS 157 establishes a fair value hierarchy that prioritizes the inputs and valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs

54

4.  PORTFOLIO SECURITIES TRANSACTIONS (continued)

(Level 3 measurements). The three levels of the fair value hierarchy under FAS 157 are described below:

Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2—Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable either directly or indirectly;

Level 3—Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

   As required by FAS 157, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following is a summary of the levels within the fair value hierarchy in which the Portfolios invest:

	Investments in Securities Long-Assets
					Prime		Tax-Exempt
Level	Federal		Money Market		Obligations		California
Level 1	$	—	$	—	$	—	$	—
Level 2(a)		2,620,271,937		490,783,730		777,251,214		645,855,413
Level 3		—		—		—		—
Total	$	2,620,271,937	$	490,783,730	$	777,251,214	$	645,855,413

	Investments in Securities Long-Assets
	Tax-Free		Tax-Exempt		Treasury		Treasury
Level	Diversified		New York		Instruments		Obligations
Level 1	$	—	$	—	$	913,582,394	$	58,894,284
Level 2(a)		1,810,610,366		423,940,059		—		986,300,000
Level 3		—		—		—		—
Total	$	1,180,610,366	$	423,940,059	$	913,582,394	$	1,045,194,284

^(a)  The Portfolios utilize amortized cost which approximates fair value to value money market investments. This results in a Level 2 classification as amortized cost is considered a model-based price.

5. LINE OF CREDIT FACILITY

The Portfolios participate in a $700,000,000 committed, unsecured revolving line of credit facility (the “facility”) together with other funds of the Trust and registered investment companies having management agreements with GSAM or affiliates. This facility is to be used solely for temporary or emergency purposes. The interest rate on borrowings is based on the federal funds rate. The 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 six months ended June 30, 2008, the Portfolios did not have any borrowings under the facility.

55

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Notes to Financial Statements (continued)

June 30, 2008 (Unaudited)

6. 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.

7. OTHER MATTERS

A. Exemptive Orders—

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

B. 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 “Reorganization Agreement”) providing for the tax-free acquisition of the AXA Enterprise Money Market Fund by the Prime Obligations Portfolio. The reorganization was completed on June 25, 2007 as of the close of business June 22, 2007.

   Pursuant to the Reorganization Agreement, the assets and liabilities of the AXA Enterprise Money Market Fund (“Acquired Fund”) Class B, Class C, Class A and Class Y were reorganized into Prime Obligations (“Survivor Portfolio”) Class B, Class C, Service Class 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 Class Y		13,614,912		13,615,195		13,614,912

56

7. OTHER MATTERS (continued)

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

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

C. Indemnifications —

Under the Trust’s organizational documents, its Trustees, officers, employees and agents are indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolios. Additionally, in the course of business, the Portfolios enter into contracts that contain a variety of indemnification clauses. The Portfolios’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Portfolios that have not yet occurred. However, the Portfolios believe the risk of loss under these arrangements to be minimal.

57

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Notes to Financial Statements (continued)

June 30, 2008 (Unaudited)

8. SUMMARY OF UNIT/ SHARE TRANSACTIONS (AT $1.00 PER UNIT/SHARE)

Unit/share activity is as follows:

	Federal Portfolio
	For the
	Six Months Ended			For the
	June 30, 2008			Year Ended
	(Unaudited)			December 31, 2007
ILA Units
Units sold		80,774,293			238,528,451
Reinvestment of dividends and distributions		726,746			2,102,478
Units redeemed		(82,592,213	)		(185,280,798	)
		(1,091,174	)		55,350,131
ILA Administration Units
Units sold		1,267,241,050			2,250,491,335
Reinvestment of dividends and distributions		28,609,697			81,821,050
Units redeemed		(1,218,117,353	)		(2,082,355,535	)
		77,733,394			249,956,850
ILA Service Units
Units sold		381,847,382			1,150,810,640
Shares issued in connection with merger		—			—
Units converted from ILA Class B(a) Units		—			—
Reinvestment of dividends and distributions		481,315			2,756,873
Units redeemed		(399,906,171	)		(1,255,980,462	)
		(17,577,474	)		(102,412,949	)
ILA Class B Units
Units sold		—			—
Shares issued in connection with merger		—			—
Units converted to ILA Service Units(a)		—			—
Reinvestment of dividends and distributions		—			—
Units redeemed		—			—
		—			—
ILA Class C Units
Shares sold		—			—
Shares issued in connection with merger		—			—
Reinvestment of dividends and distributions		—			—
Units redeemed		—			—
		—			—
ILA Cash Management Shares
Shares sold		991,581,781			426,369,851
Reinvestment of dividends and distributions		2,706,082			1,431,559
Shares redeemed		(737,035,533	)		(321,682,392	)
		257,252,330			106,119,018
Net increase (decrease) in units/shares		316,317,076			309,013,050

^(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.

58

Money Market Portfolio						Prime Obligations Portfolio						Tax-Exempt California Portfolio
For the						For the						For the
Six Months Ended			For the			Six Months Ended			For the			Six Months Ended			For the
June 30, 2008			Year Ended			June 30, 2008			Year Ended			June 30, 2008			Year Ended
(Unaudited)			December 31, 2007			(Unaudited)			December 31, 2007			(Unaudited)			December 31, 2007
	334,624,524			394,351,000			414,239,323			953,084,583			251,472,395			466,165,317
	6,048,184			15,942,966			586,409			5,596,566			1,183,014			4,136,157
	(283,083,987	)		(310,414,161	)		(412,820,711	)		(1,128,382,601	)		(214,989,223	)		(424,158,138	)
	57,588,721			99,879,805			2,005,021			(169,701,452	)		37,666,186			46,143,336
	53,207,293			75,760,439			87,838,822			185,774,657			1,969,702,264			3,338,086,936
	3,395			44,151			1,337,414			4,016,810			3,892,128			11,598,789
	(55,381,457	)		(70,992,605	)		(96,411,571	)		(167,779,328	)		(2,026,712,355	)		(3,276,096,489	)
	(2,170,769	)		4,811,985			(7,235,335	)		22,012,139			(53,117,963	)		73,589,236
	237,864,729			779,769,149			383,274,022			822,109,499			2,204,315			150
	—			—			—			90,388,492			—			—
	—			—			2,291,346			2,944,065			—			—
	563,508			3,249,937			5,469,125			15,863,205			12			48
	(248,417,929	)		(993,959,532	)		(368,997,099	)		(773,683,207	)		(1,831,213	)		(210	)
	(9,989,692	)		(210,940,446	)		22,037,394			157,622,054			373,114			(12	)
	—			—			13,940,676			11,047,825			—			—
	—			—			—			20,692,010			—			—
	—			—			(2,291,346	)		(2,944,065	)		—			—
	—			—			255,628			684,573			—			—
	—			—			(10,126,933	)		(12,817,904	)		—			—
	—			—			1,778,025			16,662,439			—			—
	—			—			31,656,793			71,220,634			—			—
	—			—			—			9,678,595			—			—
	—			—			469,693			1,357,904			—			—
	—			—			(24,131,563	)		(56,985,831	)		—			—
	—			—			7,994,923			25,271,302			—			—
	—			—			167,148,200			282,636,629			—			1,000
	13			51			344,047			990,383			6			31
	—			(573	)		(161,191,491	)		(264,218,520	)		—			(9,853	)
	13			(522	)		6,300,756			19,408,492			6			(8,822	)
	45,428,273			(106,249,178	)		32,880,784			71,274,974			(15,078,657	)		119,723,738

59

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Notes to Financial Statements (continued)

June 30, 2008 (Unaudited)

8. SUMMARY OF UNIT/ SHARE TRANSACTIONS (AT $1.00 PER UNIT/SHARE) (continued)

Unit/share activity is as follows:

	Tax-Exempt Diversified Portfolio
	For the
	Six Months Ended			For the
	June 30, 2008			Year Ended
	(Unaudited)			December 31, 2007
ILA Units
Units sold		186,403,624			228,659,362
Reinvestment of dividends and distributions		1,577,622			4,636,168
Units redeemed		(184,885,539	)		(211,421,550	)
		3,095,707			21,873,980
ILA Administration Units
Units sold		3,845,232,727			5,071,224,271
Reinvestment of dividends and distributions		7,748,194			17,996,875
Units redeemed		(3,597,789,517	)		(4,921,515,196	)
		255,191,404			167,705,950
ILA Service Units
Units sold		35,613,792			73,553,820
Reinvestment of dividends and distributions		86,308			277,083
Units redeemed		(37,832,386	)		(71,011,757	)
		(2,132,286	)		2,819,146
ILA Cash Management Shares
Shares sold		869,343			15,433,436
Reinvestment of dividends and distributions		40			—
Shares redeemed		(703,402	)		(17,686,510	)
		165,981			(2,253,074	)
Net increase (decrease) in units/shares		256,320,806			190,146,002

60

Tax-Exempt New York Portfolio						Treasury Instruments Portfolio						Treasury Obligations Portfolio
For the						For the						For the
Six Months Ended			For the			Six Months Ended			For the			Six Months Ended			For the
June 30, 2008			Year Ended			June 30, 2008			Year Ended			June 30, 2008			Year Ended
(Unaudited)			December 31, 2007			(Unaudited)			December 31, 2007			(Unaudited)			December 31, 2007
	40,205,504			104,259,372			87,794,455			40,821,869			201,348,676			519,817,296
	485,628			1,586,163			64,699			234,875			145,956			359,516
	(39,388,633	)		(86,016,859	)		(88,803,625	)		(35,604,952	)		(202,170,798	)		(505,198,092	)
	1,302,499			19,828,676			(944,471	)		5,451,792			(676,166	)		14,978,720
	1,911,364,357			2,216,969,652			794,512,865			221,320,061			445,872,305			75,754,697
	2,781,589			8,602,008			2,436,547			1,233,870			667,504			176,710
	(1,801,553,914	)		(2,304,090,205	)		(447,163,358	)		(133,155,985	)		(209,148,226	)		(59,173,930	)
	112,592,032			(78,518,545	)		349,786,054			89,397,946			237,391,583			16,757,477
	—			—			627,525,878			818,892,274			902,715,551			1,262,499,454
	527			12,901			6,419			13,060			7,805			24,862
	(393,155	)		(1,000	)		(386,391,754	)		(802,374,161	)		(800,387,824	)		(1,475,114,322	)
	(392,628	)		11,901			241,140,543			16,531,173			102,335,532			(212,590,006	)
	97			291,968			11,626,834			15,076,035			231,320,411			929,109,779
	7			920			39,487			140,093			1,593,593			2,213,544
	(192	)		(1,796,847	)		(12,330,630	)		(13,935,416	)		(325,676,197	)		(629,760,651	)
	(88	)		(1,503,959	)		(664,309	)		1,280,712			(92,762,193	)		301,562,672
	113,501,815			(60,181,927	)		589,317,817			112,661,623			246,288,756			120,708,863

61

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Financial Highlights

Selected Data for a Unit/ Share Outstanding Throughout Each Period

Federal Portfolio

																					Ratios assuming no
																					expense reductions
																								Ratio of net
																		Ratio of net						investment
	Net asset				Distributions			Net asset					Net assets		Ratio of net			investment			Ratio of total			income
	value,		Net		from net			value,					end		expenses to			income to			expenses to			(loss) to
	beginning		investment		investment			end		Total			of period		average net			average net			average net			average net
Year—Unit/Share Class	of period		income(a)		income			of period		return(b)			(in 000’s)		assets			assets			assets			assets
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
2008-ILA Units	$	1.00	$	0.014	$	(0.014	)	$	1.00		1.38	%	$	81,863		0.41	%(c)		2.72	%(c)		0.41	%(c)		2.72	%(c)
2008-ILA Administration Units		1.00		0.013		(0.013	)		1.00		1.31			2,083,605		0.56	(c)		2.61	(c)		0.56	(c)		2.61	(c)
2008-ILA Service Units		1.00		0.012		(0.012	)		1.00		1.18			78,368		0.81	(c)		2.43	(c)		0.81	(c)		2.43	(c)
2008-ILA Cash Management Shares		1.00		0.011		(0.011	)		1.00		1.10			363,667		0.98	(c)		1.95	(c)		1.41	(c)		1.52	(c)
FOR THE YEARS ENDED DECEMBER 31,
2007-ILA Units		1.00		0.047		(0.047	)		1.00		4.85			82,946		0.41			4.67			0.42			4.66
2007-ILA Administration Units		1.00		0.046		(0.046	)		1.00		4.69			2,005,664		0.56			4.60			0.57			4.59
2007-ILA Service Units		1.00		0.043		(0.043	)		1.00		4.43			95,938		0.81			4.11			0.82			4.10
2007-ILA Cash Management Shares		1.00		0.042		(0.042	)		1.00		4.25			106,375		0.98			3.77			1.42			3.33
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	)

(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.

62

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Financial Highlights

Selected Data for a Unit/ Share Outstanding Throughout Each Period

Money Market Portfolio

																				Ratios assuming no
																				expense reductions
																							Ratio of net
																	Ratio of net						investment
	Net asset				Distributions		Net asset					Net assets		Ratio of net			investment			Ratio of total			income
	value,		Net		from net		value,					end		expenses to			income to			expenses to			(loss) to
	beginning		investment		investment		end		Total			of period		average net			average net			average net			average net
Year—Unit/Share Class	of period		income(a)		income		of period		return(b)			(in 000’s)		assets			assets			assets			assets
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
2008-ILA Units	$	1.00	$	0.015	$	(0.015)	$	1.00		1.48	%	$	451,400		0.43	%(c)		2.96	%(c)		0.44	%(c)		2.95	%(c)
2008-ILA Administration Units		1.00		0.014		(0.014)		1.00		1.41			12,213		0.58	(c)		2.85	(c)		0.59	(c)		2.84	(c)
2008-ILA Service Units		1.00		0.013		(0.013)		1.00		1.28			35,021		0.83	(c)		2.58	(c)		0.84	(c)		2.57	(c)
2008-ILA Cash Management Shares		1.00		0.012		(0.012)		1.00		1.20			1		1.00	(c)		2.41	(c)		1.44	(c)		1.97	(c)
FOR THE YEARS ENDED DECEMBER 31,
2007-ILA Units		1.00		0.049		(0.049)		1.00		5.02			393,809		0.44			4.90			0.47			4.87
2007-ILA Administration Units		1.00		0.047		(0.047)		1.00		4.86			14,383		0.59			4.75			0.62			4.72
2007-ILA Service Units		1.00		0.045		(0.045)		1.00		4.60			45,010		0.84			4.52			0.87			4.49
2007-ILA Cash Management Shares		1.00		0.043		(0.043)		1.00		4.42			1		1.01			4.51			1.47			4.05
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	)

(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.

63

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						investment
	Net asset				Distributions			Net asset					Net assets		Ratio of net			investment			Ratio of total			income
	value,		Net		from net			value,					end		expenses to			income to			expenses to			(loss) to
	beginning		investment		investment			end		Total			of period		average net			average net			average net			average net
Year—Unit/Share Class	of period		income(a)		income			of period		return(b)			(in 000’s)		assets			assets			assets			assets
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
2008-ILA Units	$	1.00	$	0.015	$	(0.015	)	$	1.00		1.47	%	$	123,200		0.43	%(c)		2.90	%(c)		0.44	%(c)		2.89	%(c)
2008-ILA Administration Units		1.00		0.014		(0.014	)		1.00		1.40			88,536		0.58	(c)		2.82	(c)		0.59	(c)		2.81	(c)
2008-ILA Service Units		1.00		0.013		(0.013	)		1.00		1.27			456,404		0.83	(c)		2.54	(c)		0.84	(c)		2.53	(c)
2008-ILA B Units		1.00		0.010		(0.010	)		1.00		0.97			27,749		1.43	(c)		1.97	(c)		1.44	(c)		1.96	(c)
2008-ILA C Units		1.00		0.010		(0.010	)		1.00		0.97			51,659		1.43	(c)		1.93	(c)		1.44	(c)		1.92	(c)
2008-ILA Cash Management Shares		1.00		0.012		(0.012	)		1.00		1.19			29,898		1.00	(c)		2.40	(c)		1.44	(c)		1.96	(c)
FOR THE YEARS ENDED DECEMBER 31,
2007-ILA Units		1.00		0.049		(0.049	)		1.00		5.01			121,193		0.43			4.92			0.44			4.91
2007-ILA Administration Units		1.00		0.047		(0.047	)		1.00		4.86			95,770		0.58			4.75			0.59			4.74
2007-ILA Service Units		1.00		0.045		(0.045	)		1.00		4.59			434,359		0.83			4.49			0.84			4.48
2007-ILA B Units		1.00		0.039		(0.039	)		1.00		3.97			25,971		1.43			3.88			1.44			3.87
2007-ILA C Units		1.00		0.039		(0.039	)		1.00		3.97			43,663		1.43			3.89			1.44			3.88
2007-ILA Cash Management Shares		1.00		0.043		(0.043	)		1.00		4.42			23,597		1.00			4.32			1.44			3.88
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	)

(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.

64

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Financial Highlights

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						investment
	Net asset				Distributions			Net asset					Net assets		Ratio of net			investment			Ratio of total			income
	value,		Net		from net			value,					end		expenses to			income to			expenses to			(loss) to
	beginning		investment		investment			end		Total			of period		average net			average net			average net			average net
Year—Unit/Share Class	of period		income(a)		income			of period		return(b)			(in 000’s)		assets			assets			assets			assets
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
2008-ILA Units	$	1.00	$	0.009	$	(0.009	)	$	1.00		0.88	%	$	214,156		0.42	%(c)		1.70	%(c)		0.43	%(c)		1.69	%(c)
2008-ILA Administration Units		1.00		0.008		(0.008	)		1.00		0.80			441,419		0.57	(c)		1.63	(c)		0.58	(c)		1.62	(c)
2008-ILA Service Units		1.00		0.007		(0.007	)		1.00		0.68			375		0.82	(c)		0.82	(c)		0.83	(c)		0.81	(c)
2008-ILA Cash Management Shares		1.00		0.006		(0.006	)		1.00		0.59			1		0.99	(c)		1.21	(c)		1.43	(c)		0.77	(c)
FOR THE YEARS ENDED DECEMBER 31,
2007-ILA Units		1.00		0.031		(0.031	)(d)		1.00		3.20			176,449		0.43			3.14			0.44			3.13
2007-ILA Administration Units		1.00		0.030		(0.030	)(d)		1.00		3.05			494,462		0.58			2.99			0.59			2.98
2007-ILA Service Units		1.00		0.027		(0.027	)(d)		1.00		2.79			2		0.83			2.73			0.84			2.72
2007-ILA Cash Management Shares		1.00		0.026		(0.026	)(d)		1.00		2.62			1		1.00			2.64			1.44			2.20
2006-ILA Units		1.00		0.029		(0.029	)(d)		1.00		3.03			130,302		0.43			2.90			0.44			2.90
2006-ILA Administration Units		1.00		0.028		(0.028	)(d)		1.00		2.87			420,875		0.58			2.82			0.59			2.81
2006-ILA Service Units		1.00		0.026		(0.026	)(d)		1.00		2.62			2		0.83			2.56			0.84			2.56
2006-ILA Cash Management Shares		1.00		0.023		(0.023	)(d)		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	)

(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 taxable distributions. Total returns for periods less than one full year are not annualized.
(c)	Annualized.

^(d)  Amount includes $0.00007 and $0.00028 of distributions from net realized gains for the years ended December 31, 2007 and December 31, 2006, respectively.

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

65

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Financial Highlights

Selected Data for a Unit/ Share Outstanding Throughout Each Period

Tax-Exempt Diversified Portfolio

																					Ratios assuming no
																					expense reductions
																								Ratio of net
																		Ratio of net						investment
	Net asset				Distributions			Net asset					Net assets		Ratio of net			investment			Ratio of total			income
	value,		Net		from net			value,					end		expenses to			income to			expenses to			(loss) to
	beginning		investment		investment			end		Total			of period		average net			average net			average net			average net
Year—Unit/Share Class	of period		income(a)		income			of period		return(b)			(in 000’s)		assets			assets			assets			assets
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
2008-ILA Units	$	1.00	$	0.009	$	(0.009	)	$	1.00		0.92	%	$	150,145		0.42	%(c)		1.84	%(c)		0.42	% (c)		1.84	%(c)
2008-ILA Administration Units		1.00		0.008		(0.008	)		1.00		0.84			980,311		0.57	(c)		1.65	(c)		0.57	(c)		1.65	(c)
2008-ILA Service Units		1.00		0.007		(0.007	)		1.00		0.72			18,427		0.82	(c)		1.45	(c)		0.82	(c)		1.45	(c)
2008-ILA Cash Management Shares		1.00		0.006		(0.006	)		1.00		0.63			871		0.99	(c)		1.24	(c)		1.42	(c)		0.81	(c)
FOR THE YEARS ENDED DECEMBER 31,
2007-ILA Units		1.00		0.032		(0.032	)(d)		1.00		3.31			147,044		0.43			3.24			0.44			3.23
2007-ILA Administration Units		1.00		0.031		(0.031	)(d)		1.00		3.15			725,018		0.58			3.09			0.59			3.08
2007-ILA Service Units		1.00		0.028		(0.028	)(d)		1.00		2.90			20,559		0.83			2.85			0.84			2.84
2007-ILA Cash Management Shares		1.00		0.026		(0.026	)(d)		1.00		2.72			705		1.00			2.68			1.44			2.24
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	)

(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 taxable distributions. Total returns for periods less than one full year are not annualized.
(c)	Annualized.
(d)	Amount includes $0.00014 and $0.0004 of distributions from net realized gains for the years ended December 31, 2007 and December 31, 2006, respectively.

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

66

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Financial Highlights

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						investment
	Net asset				Distributions			Net asset					Net assets		Ratio of net			investment			Ratio of total			income
	value,		Net		from net			value,					end		expenses to			income to			expenses to			(loss) to
	beginning		investment		investment			end		Total			of period		average net			average net			average net			average net
Year—Unit/Share Class	of period		income(a)		income			of period		return(b)			(in 000’s)		assets			assets			assets			assets
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
2008-ILA Units	$	1.00	$	0.009	$	(0.009	)	$	1.00		0.90	%	$	57,662		0.43	%(c)		1.82	%(c)		0.46	%(c)		1.79	%(c)
2008-ILA Administration Units		1.00		0.008		(0.008	)		1.00		0.83			365,938		0.58	(c)		1.62	(c)		0.61	(c)		1.59	(c)
2008-ILA Service Units		1.00		0.007		(0.007	)		1.00		0.70			76		0.83	(c)		1.62	(c)		0.86	(c)		1.59	(c)
2008-ILA Cash Management Shares		1.00		0.006		(0.006	)		1.00		0.62			1		1.00	(c)		1.22	(c)		1.46	(c)		0.76	(c)
FOR THE YEARS ENDED DECEMBER 31,
2007-ILA Units		1.00		0.032		(0.032	)(d)		1.00		3.24			56,353		0.43			3.20			0.46			3.17
2007-ILA Administration Units		1.00		0.030		(0.030	)(d)		1.00		3.09			253,295		0.58			3.04			0.61			3.01
2007-ILA Service Units		1.00		0.028		(0.028	)(d)		1.00		2.83			468		0.83			2.79			0.86			2.76
2007-ILA Cash Management Shares		1.00		0.026		(0.026	)(d)		1.00		2.66			1		1.00			2.65			1.44			2.19
2006-ILA Units		1.00		0.030		(0.030	)(d)		1.00		3.04			36,521		0.43			2.92			0.45			2.90
2006-ILA Administration Units		1.00		0.029		(0.029	)(d)		1.00		2.89			331,793		0.58			2.86			0.60			2.85
2006-ILA Service Units		1.00		0.027		(0.027	)(d)		1.00		2.63			456		0.83			2.67			0.85			2.65
2006-ILA Cash Management Shares		1.00		0.023		(0.023	)(d)		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	)

(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 taxable distributions. Total returns for periods less than one full year are not annualized.
(c)	Annualized.
(d)	Amount includes $0.00005 and $0.00008 of distributions from net realized gains for the years ended December 31, 2007 and December 31, 2006, respectively.

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

67

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Financial Highlights

Selected Data for a Unit/ Share Outstanding Throughout Each Period

Treasury Instruments Portfolio

																						Ratios assuming no
																						expense reductions
																									Ratio of net
																			Ratio of net						investment
	Net asset					Distributions			Net asset					Net assets		Ratio of net			investment			Ratio of total			income
	value,		Net			from net			value,					end		expenses to			income to			expenses to			(loss) to
	beginning		investment			investment			end		Total			of period		average net			average net			average net			average net
Year—Unit/Share Class	of period		income(a)			income			of period		return(b)			(in 000’s)		assets			assets			assets			assets
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
2008-ILA Units	$	1.00	$	0	.008(d)	$	(0	.008)(d)	$	1.00		0.83	%	$	8,108		0.43	%(c)		1.50	%(c)		0.44	%(c)		1.49	%(c)
2008-ILA Administration Units		1.00		0	.008(d)		(0	.008)(d)		1.00		0.75			462,356		0.58	(c)		1.08	(c)		0.59	(c)		1.07	(c)
2008-ILA Service Units		1.00		0	.006(d)		(0	.006)(d)		1.00		0.63			416,238		0.83	(c)		0.93	(c)		0.84	(c)		0.92	(c)
2008-ILA Cash Management Shares		1.00		0	.005(d)		(0	.005)(d)		1.00		0.54			6,582		1.00	(c)		1.03	(c)		1.44	(c)		0.59	(c)
FOR THE YEARS ENDED DECEMBER 31,
2007-ILA Units		1.00		0	.042(d)		(0	.042)(d)		1.00		4.32			9,055		0.43			3.94			0.46			3.91
2007-ILA Administration Units		1.00		0	.041(d)		(0	.041)(d)		1.00		4.16			112,629		0.58			3.68			0.61			3.65
2007-ILA Service Units		1.00		0	.038(d)		(0	.038)(d)		1.00		3.91			175,160		0.83			3.71			0.86			3.68
2007-ILA Cash Management Shares		1.00		0	.037(d)		(0	.037)(d)		1.00		3.73			7,247		1.00			3.34			1.46			2.88
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	)

(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)  Net investment income and distributions from net investment income contain $0.001 and $(0.001) of realized capital gains and distributions from net realized gains, respectively.

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

68

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Financial Highlights

Selected Data for a Unit/ Share Outstanding Throughout Each Period

Treasury Obligations Portfolio

																					Ratios assuming no
																					expense reductions
																								Ratio of net
																		Ratio of net						investment
	Net asset				Distributions			Net asset					Net assets		Ratio of net			investment			Ratio of total			income
	value,		Net		from net			value,					end		expenses to			income to			expenses to			(loss) to
	beginning		investment		investment			end		Total			of period		average net			average net			average net			average net
Year—Unit/Share Class	of period		income(a)		income			of period		return(b)			(in 000’s)		assets			assets			assets			assets
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
2008-ILA Units	$	1.00	$	0.010	$	(0.010	)	$	1.00		0.99	%	$	39,474		0.43	%(c)		2.02	%(c)		0.43	%(c)		2.02	%(c)
2008-ILA Administration Units		1.00		0.009		(0.009	)		1.00		0.91			254,281		0.58	(c)		1.61	(c)		0.58	(c)		1.61	(c)
2008-ILA Service Units		1.00		0.008		(0.008	)		1.00		0.79			536,990		0.83	(c)		1.56	(c)		0.83	(c)		1.56	(c)
2008-ILA Cash Management Shares		1.00		0.007		(0.007	)		1.00		0.71			268,197		1.00	(c)		1.47	(c)		1.43	(c)		1.04	(c)
FOR THE YEARS ENDED DECEMBER 31,
2007-ILA Units		1.00		0.045		(0.045	)		1.00		4.56			40,156		0.43			4.44			0.43			4.44
2007-ILA Administration Units		1.00		0.043		(0.043	)		1.00		4.40			16,911		0.58			3.70			0.58			3.70
2007-ILA Service Units		1.00		0.041		(0.041	)		1.00		4.14			434,726		0.83			4.11			0.83			4.11
2007-ILA Cash Management Shares		1.00		0.039		(0.039	)		1.00		3.97			361,004		1.00			3.49			1.43			3.06
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	)

(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.

69

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Statement Regarding Basis for Approval of Management Agreement (Unaudited)

Background

     The Goldman Sachs Institutional Liquid Assets Federal, Goldman Sachs Institutional Liquid Assets Money Market, Goldman Sachs Institutional Liquid Assets Prime Obligations, Goldman Sachs Institutional Liquid Assets Tax-Exempt California, Goldman Sachs Institutional Liquid Assets Tax-Exempt Diversified, Goldman Sachs Institutional Liquid Assets Tax-Exempt New York, Goldman Sachs Institutional Liquid Assets Treasury Instruments and Goldman Sachs Institutional Liquid Assets Treasury Obligations Portfolios (the “Portfolios”) are investment portfolios of Goldman Sachs Trust (the “Trust”). The Board of Trustees oversees the management of the Trust and reviews the investment performance and expenses of the Portfolios at regularly scheduled meetings held during the year. In addition, the Board of Trustees determines 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”) with respect to the Portfolios.

     The Management Agreement was most recently approved by the Board of Trustees, including those 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”), at a meeting held on June 18, 2008 (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 established a Contract Review Committee (the “Committee”) whose members include all of the Independent Trustees. The Committee held meetings on December 12, 2007, February 6, 2008 and May 21, 2008. At those Committee meetings, the Independent Trustees considered matters relating to the Management Agreement including: (a) the nature and quality of the advisory, administrative and other services provided to the Portfolios by the Investment Adviser and its affiliates; (b) the Portfolios’ investment performance; (c) the Portfolios’ management fee arrangements; (d) the Investment Adviser’s undertakings to reimburse certain expenses of the Portfolios that exceed specified levels and the estimated annualized savings resulting from those undertakings; (e) potential economies of scale; (f) the relative expense levels of the Portfolios as compared to those of comparable funds; (g) data relating to the Investment Adviser’s profitability with respect to the Trust and each of the Portfolios; (h) the statutory and regulatory requirements applicable to the approval and continuation of mutual fund investment management agreements; (i) recently proposed changes to the expense cap arrangements; (j) 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 comparisons for the Portfolios; (k) the current pricing and profitability of the Portfolios’ transfer agent; and (l) the nature and quality of the services provided by the Portfolios’ unaffiliated service providers and reports on due diligence conducted by the Investment Adviser with respect to unaffiliated 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) the quality of the Investment Adviser’s services; (b) the structure, staff and capabilities of the Investment Adviser and its portfolio management team; (c) the groups within the Investment Adviser that support the portfolio management team, including the legal and compliance departments, the credit department, the fund controllers group, the tax group, the product services group, the valuation oversight group, the risk management and analysis group, the business planning team and the technology group; (d) the Investment Adviser’s business continuity and disaster recovery planning; (e) the Investment Adviser’s financial resources and its ability to hire and retain

70

talented personnel; (f) the fees received by the Investment Adviser’s affiliates from the Portfolios for transfer agency, distribution and other services; (g) the terms of the Management Agreement and agreements with other service providers entered into by the Trust on behalf of the Portfolios; (h) 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 (i) the Investment Adviser’s processes and policies addressing various types of potential conflicts of interest. At the Annual Contract Meeting, the Trustees also considered further the Investment Adviser’s profitability with respect to the Trust and each Portfolio, and each Portfolio’s investment performance, fees and expenses, including each Portfolio’s 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 attended sessions at which they reviewed information regarding the Portfolios’ assets, sales and redemptions and the payment of Rule 12b-1 distribution and service fees and non-Rule 12b-1 shareholder service and administration plan fees by certain share classes of the Portfolios. Information was also provided to the Trustees relating to revenue sharing payments made by and services provided by the Investment Adviser and its affiliates to intermediaries that promote the sale, distribution and/or servicing of Portfolio shares and other matters. During the course of their deliberations, the Independent Trustees met in executive sessions with their independent legal counsel, without representatives of the Investment Adviser or its affiliates present.

     The presentations made at the 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 agreements for all of the Portfolios and the other mutual fund portfolios for which the Trustees have responsibility were considered at the same Annual Contract Meeting, the Trustees separately considered the Management Agreement as it applied to each Portfolio.

     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 affiliates, their services and the Portfolios. At those meetings the Trustees received materials relating to the Investment Adviser’s investment management and other services provided under the Management Agreement, including: (a) information on the investment performance of the Portfolios in comparison to the performance of 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 copies of disclosure materials regarding the Portfolios and their expenses, as well as information on the Portfolios’ competitive universe and discussed the broad range of other investment choices that are available to Portfolio investors.

Nature, Extent and Quality of the Services Provided Under the Management Agreement

     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 that Goldman, Sachs & Co. (“Goldman Sachs”) provides 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 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 Independent Trustees also believed

71

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Statement Regarding Basis for Approval of Management Agreement (Unaudited) (continued)

that the Investment Adviser had made significant commitments to address regulatory compliance requirements applicable to the Portfolios and the Investment Adviser, including the implementation and enhancement of compliance systems and education and training initiatives.

Investment Performance

     The Independent Trustees also considered the investment performance of the Portfolios and the Investment Adviser. In this regard, they compared the investment performance of each Portfolio to the performance rankings and ratings compiled by the Outside Data Provider. This information on each Portfolio’s investment performance was provided for the one-, three-, five-and ten-year periods ended December 31, 2007. The Trustees considered each Portfolio’s investment performance in light of its investment objective and credit parameters. They also considered the investor constituencies each Portfolio serves, and each Portfolio’s compliance with regulations of the Securities and Exchange Commission (“SEC”) applicable to money market mutual funds and the stability of its net asset value. In light of these considerations, the Trustees concluded that each Portfolio was providing investment performance within a competitive range for investors and that the Investment Adviser’s continued management would benefit each Portfolio and its shareholders.

Costs of Services Provided and Competitive Information

     The Independent Trustees considered the contractual fee rates payable by each Portfolio 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.

     In particular, the Trustees reviewed analyses prepared by the Outside Data Provider regarding the expense rankings of the Portfolios. The analyses provided a comparison of the Portfolios’ management fees 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 the category averages. The analyses also compared each Portfolio’s transfer agency fees, custody and accounting fees, other expenses and waivers/reimbursements to those of peer groups and peer group medians. The Independent Trustees believed that the comparisons provided by the Outside Data Provider were useful in evaluating the reasonableness of the management fees and total expenses paid by the Portfolios.

     In addition, the Independent Trustees considered the Investment Adviser’s and Goldman Sachs’ voluntary undertakings to limit the Portfolios’ “other expenses” ratios and the Rule 12b-1 fees paid by the Portfolios’ Cash Management Shares, respectively, (excluding certain expenses) to certain specified levels.

     They also considered information that indicated that services provided to the Portfolios differed in various significant respects from the services provided to the Investment Adviser’s institutional accounts, which generally required fewer services from the Investment Adviser, were less time-intensive and paid lower fees.

     The Independent Trustees noted the competitive nature of the mutual fund marketplace, and that many of the Portfolios’ shareholders invested in the Portfolios in part because of the Portfolios’ relationship with the Investment Adviser and have a general expectation that the relationship will continue. They also noted that shareholders may be able to redeem their Portfolio shares if they believe that the Portfolio fees and expenses are too high or if they are dissatisfied with the performance of the Portfolios.

72

Profitability

     The Independent Trustees reviewed the Investment Adviser’s revenues and pre-tax profit margins with respect to the Trust and each of the Portfolios. In this regard the Independent Trustees reviewed, among other things, profitability analyses and summaries, revenue and expense schedules by Portfolio and by function (i.e., investment management, transfer agency and distribution and service), and expense allocation methodologies, as well as the report of an independent registered public accounting firm regarding the mathematical accuracy and conformity to the Investment Adviser’s allocation methodologies of the Investment Adviser’s schedule of revenues and expenses. Profitability data for the Trust and each Portfolio were provided for 2007 and 2006, and the Independent Trustees considered this information in relation to the Investment Adviser’s overall profitability. The Independent Trustees considered the Investment Adviser’s revenues and pre-tax profit margins both in absolute terms and in comparison to the information on the reported pre-tax profit margins earned by certain other asset management firms.

Economies of Scale

     In addition, the Independent Trustees reviewed information regarding potential economies of scale, and whether the Portfolios and their shareholders were participating in the benefits of such economies. In this regard, they considered the amount of assets in the Portfolios; whether there had been any growth in the Portfolios’ assets; 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; and 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 funds. In this regard, the Trustees noted that the fees actually paid by the Portfolios were reduced by the Investment Adviser’s voluntary undertakings to limit certain “other expenses” to certain amounts. The Independent Trustees also considered the competitive nature of the money market fund business and the competiveness of the fees charged to the Portfolios by the Investment Adviser.

Other Benefits to the Investment Adviser and Its Affiliates

     The Independent Trustees also considered the other benefits derived by the Investment Adviser and its affiliates from their relationship with the Portfolios as stated above, including: (a) transfer agency fees received by Goldman Sachs; (b) trading efficiencies resulting from aggregation of orders of the Portfolios with those for other funds or accounts managed by the Investment Adviser; (c) the Investment Adviser’s ability to leverage the infrastructure designed to service the Portfolios on behalf of its other clients; (d) the Investment Adviser’s ability to cross-market other products and services to Portfolio shareholders; (e) Goldman Sachs’ retention of certain fees as Portfolio Distributor; (f) Goldman Sachs’ ability to engage in principal transactions with the Portfolios under the SEC exemptive orders permitting such trades; and (g) the Investment Adviser’s ability to negotiate better pricing with custodians on behalf of its other clients, as a result of the relationship with the Portfolios.

Other Benefits to the Portfolios and Their Shareholders

     The Independent Trustees also noted that the Portfolios receive certain other benefits as a result of their relationship with the Investment Adviser, including: (a) trading efficiencies resulting from aggregation of orders of the Portfolios with those of other funds or accounts managed by the Investment Adviser; (b) improved servicing from vendors because of the volume of business generated by the Investment Adviser and its affiliates; (c) improved servicing from broker-dealers because of the volume of business generated by the Investment Adviser and its affiliates; (d) the advantage received from the Investment Adviser’s knowledge

73

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Statement Regarding Basis for Approval of Management Agreement (Unaudited) (continued)

and experience gained from managing other accounts and products; and (e) the Investment Adviser’s ability to hire and retain qualified personnel to provide services to the Portfolios because of the reputation of the Goldman Sachs organization.

Conclusion

     In connection with their consideration of the Management Agreement, the Independent Trustees gave weight to each of the factors described above, but did not identify any particular factor as controlling their decision. After deliberation and consideration of all of the information provided, including the factors described above, the Independent Trustees concluded, in the exercise of their business judgment, that the management fees paid by each Portfolio were reasonable in light of the services provided to it by the Investment Adviser, the Investment Adviser’s costs and each Portfolio’s current and reasonably foreseeable asset levels, and that the Management Agreement should be approved and continued with respect to each Portfolio.

74

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Portfolio Expenses (Unaudited) — Six Month Period Ended June 30, 2008 

          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 Portfolios 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, 2008 through June 30, 2008.

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 net 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.

	Federal Portfolio							Money Market Portfolio							Prime Obligations Portfolio							Tax-Exempt California Portfolio
						Expenses							Expenses							Expenses							Expenses
						Paid for							Paid for							Paid for							Paid for
	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
	Value		Value			ended		Value		Value			ended		Value		Value			ended		Value		Value			ended
Share Class	1/1/08		6/30/08			6/30/08*		1/1/08		6/30/08			6/30/08*		1/1/08		6/30/08			6/30/08*		1/1/08		6/30/08			6/30/08*
ILA Units
Actual	$	1,000.00	$	1,013.80		$	2.06	$	1,000.00	$	1,014.80		$	2.15	$	1,000.00	$	1,014.70		$	2.18	$	1,000.00	$	1,008.80		$	2.10
Hypothetical 5% return		1,000.00		1,022.82	+		2.07		1,000.00		1,022.73	+		2.16		1,000.00		1,022.70	+		2.18		1,000.00		1,022.77	+		2.11
ILA Administration Units
Actual		1,000.00		1,013.10			2.82		1,000.00		1,014.10			2.90		1,000.00		1,014.00			2.93		1,000.00		1,008.00			2.85
Hypothetical 5% return		1,000.00		1,022.07	+		2.83		1,000.00		1,021.98	+		2.92		1,000.00		1,021.95	+		2.94		1,000.00		1,022.03	+		2.87
ILA Service Units
Actual		1,000.00		1,011.80			4.07		1,000.00		1,012.80			4.15		1,000.00		1,012.70			4.19		1,000.00		1,006.80			4.09
Hypothetical 5% return		1,000.00		1,020.82	+		4.09		1,000.00		1,020.74	+		4.17		1,000.00		1,020.70	+		4.20		1,000.00		1,020.79	+		4.12
ILA B Units
Actual		N/A		N/A			N/A		N/A		N/A			N/A		1,000.00		1,009.70			7.20		N/A		N/A			N/A
Hypothetical 5% return		N/A		N/A			N/A		N/A		N/A			N/A		1,000.00		1,017.70	+		7.23		N/A		N/A			N/A
ILA C Units
Actual		N/A		N/A			N/A		N/A		N/A			N/A		1,000.00		1,009.70			7.20		N/A		N/A			N/A
Hypothetical 5% return		N/A		N/A			N/A		N/A		N/A			N/A		1,000.00		1,017.70	+		7.23		N/A		N/A			N/A
ILA Cash Management Shares
Actual		1,000.00		1,011.00			4.91		1,000.00		1,012.00			5.00		1,000.00		1,011.90			5.05		1,000.00		1,005.90			4.94
Hypothetical 5% return		1,000.00		1,019.98	+		4.93		1,000.00		1,019.89	+		5.02		1,000.00		1,019.84	+		5.07		1,000.00		1,019.94	+		4.97

75

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

	Tax-Exempt Diversified Portfolio							Tax-Exempt New York Portfolio							Treasury Instruments Portfolio							Treasury Obligations Portfolio
						Expenses							Expenses							Expenses							Expenses
						Paid for							Paid for							Paid for							Paid for
	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
	Value		Value			ended		Value		Value			ended		Value		Value			ended		Value		Value			ended
Share Class	1/1/08		6/30/08			6/30/08*		1/1/08		6/30/08			6/30/08*		1/1/08		6/30/08			6/30/08*		1/1/08		6/30/08			6/30/08*
ILA Units
Actual	$	1,000.00	$	1,009.20		$	2.09	$	1,000.00	$	1,009.00		$	2.14	$	1,000.00	$	1,008.30			2.14	$	1,000.00	$	1,009.90		$	2.14
Hypothetical 5% return		1,000.00		1,022.78	+		2.11		1,000.00		1,022.73	+		2.15		1,000.00		1,022.73	+		2.15		1,000.00		1,022.73	+		2.15
ILA Administration Units
Actual		1,000.00		1,008.40			2.84		1,000.00		1,008.30			2.89		1,000.00		1,007.50			2.88		1,000.00		1,009.10			2.88
Hypothetical 5% return		1,000.00		1,022.03	+		2.86		1,000.00		1,021.99	+		2.91		1,000.00		1,021.99	+		2.90		1,000.00		1,022.00	+		2.90
ILA Service Units
Actual		1,000.00		1,007.20			4.10		1,000.00		1,007.00			4.15		1,000.00		1,006.30			4.13		1,000.00		1,007.90			4.10
Hypothetical 5% return		1,000.00		1,020.78	+		4.13		1,000.00		1,020.73	+		4.18		1,000.00		1,020.75	+		4.16		1,000.00		1,020.77			4.13
ILA Cash Management Shares
Actual		1,000.00		1,006.30			4.95		1,000.00		1,006.20			4.99		1,000.00		1,005.40			4.99		1,000.00		1,007.10			4.93
Hypothetical 5% return		1,000.00		1,019.93	+		4.99		1,000.00		1,019.89	+		5.02		1,000.00		1,019.88	+		5.03		1,000.00		1,019.95			4.96

*  Expenses for each share class are calculated using each 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:

Portfolio	ILA Units			ILA Administration Units			ILA Service Units			ILA B Units			ILA C Units			ILA Cash Management Shares
Federal		0.41	%		0.56	%		0.81	%		N/A			N/A			0.98	%
Money Market		0.43			0.58			0.83			N/A			N/A			1.00
Prime Obligations		0.43			0.58			0.83			1.43	%		1.43	%		1.00
Tax-Exempt California		0.42			0.57			0.82			N/A			N/A			0.99
Tax-Exempt Diversified		0.42			0.57			0.82			N/A			N/A			0.99
Tax-Exempt New York		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
Treasury Obligations		0.43			0.58			0.83			N/A			N/A			1.00

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

76

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 (“SEC”) Web site at http://www.sec.gov.

The Portfolios file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Portfolios’ Form N-Q is available on the SEC’s website at http://www.sec.gov within 60 days after the Portfolios’ first and third fiscal quarters. 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, Forms 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 dividends for one year.

The 30-Day Current Yield is calculated in accordance with securities industry regulations and does not include capital gains. The Standardized 30-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.

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 2008 Goldman, Sachs & Co. All rights reserved.    08-12638.MF.OTU/43K/08-08

TRUSTEES

Ashok N. Bakhru, Chairman

John P. Coblentz, Jr.

Diana M. Daniels

Patrick T. Harker

James A. McNamara

Jessica Palmer

Alan A. Shuch

Richard P. Strubel

OFFICERS

James A. McNamara, 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 6/08 Goldman Sachs Funds
32 Old Slip
New York, NY 10005

ITEM 2. CODE OF ETHICS.

(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party (the “Code of Ethics”).

(b) During the period covered by this report, no amendments were made to the provisions of the Code of Ethics.

(c) During the period covered by this report, the registrant did not grant any waivers, including an implicit waiver, from any provision of the Code of Ethics.

(d) A copy of the Code of Ethics is available as provided in Item 12(a)(1) of this report.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The information required by this Item is only required in an annual report on this Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The information required by this Item is only required in an annual report on this Form N-CSR.

ITEM 5.	AUDIT COMMITTEE OF LISTED REGISTRANTS.
	The information required by this Item is only required in an annual report on this Form N-CSR.

ITEM 6.	SCHEDULE OF INVESTMENTS.
	The Schedule of Investments is included as part of the Semi-Annual Report to Stockholders filed under Item 1 of this Form N-CSR.

ITEM 7.	DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
	The information required by this Item is only required in an annual report on this Form N-CSR.

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)(1)		Goldman Sachs Trust's Code of Ethics for Principal Executive and Senior Financial Officers is incorporated by reference to Exhibit 11(a)(1) of the registrant's Form N-CSR filed on March 8, 2004 for its Real Estate Securities Fund (Accession Number 0000950123-04-0002984).
(a)(2)	Exhibit 99.CERT	Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.
(b)	Exhibit 99.906CERT	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Goldman Sachs Trust
By:	/s/ James A. McNamara
	James A. McNamara
	President/Principal Executive Officer
	Goldman Sachs Trust
Date:	September 5, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, 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/ James A. McNamara
	James A. McNamara
	President/Principal Executive Officer
	Goldman Sachs Trust
Date:	September 5, 2008
By:	/s/ John M. Perlowski
	John M. Perlowski
	Treasurer/Principal Financial Officer
	Goldman Sachs Trust
Date:	September 5, 2008