Goldman Sachs High Yield Instl NCSRS 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: March 31

Date of reporting period: September 30, 2008


ITEM 1.		REPORTS TO STOCKHOLDERS.

		The Semi-Annual Report to Stockholders is filed herewith.

Goldman Sachs Funds



Semi-Annual Report			September 30, 2008



			Short Duration and Government Fixed Income
			Enhanced Income Fund
			Government Income Fund
			Inflation Protected Securities Fund
			Short Duration Government Fund
			Ultra-Short Duration Government Fund

Goldman Sachs Short Duration and Government
Fixed Income Funds


n	GOLDMAN SACHS ENHANCED INCOME FUND

n	GOLDMAN SACHS GOVERNMENT INCOME FUND

n	GOLDMAN SACHS INFLATION PROTECTED SECURITIES FUND

n	GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND

n	GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND

TABLE OF CONTENTS


Principal Investment Strategies and Risks		1
Investment Process		3
Letters to Shareholders and Performance Summaries		4
Schedules of Investments		24
Financial Statements		50
Notes to the Financial Statements		58
Financial Highlights		76
Other Information		86


NOT FDIC-INSURED	May Lose Value	No Bank Guarantee

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Principal Investment Strategies and Risks

The Enhanced Income Fund invests primarily in a portfolio of fixed income government securities, including non-mortgage securities issued or guaranteed by the U.S. government, its agencies, instrumentalities or sponsored enterprises, corporate notes and commercial paper and fixed and floating rate asset-backed securities. The Fund’s investments in fixed income securities are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. The Fund is not a money market fund. Investors in this Fund should understand that the net asset value of the Fund will fluctuate, which may result in a loss of the principal amount invested. The Fund may invest in foreign securities, which may be more volatile and less liquid than its investment in U.S. securities and will be subject to the risks of currency fluctuations and sudden economic or political developments. The Fund may make substantial investments in derivative instruments, including options, financial futures, Eurodollar futures contracts, swaps, options on swaps, structured securities and other derivative investments. Derivative instruments may involve a high degree of financial risk. These risks include the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instrument; risks of default by a counterparty; and the risks that transactions may not be liquid.

The Government Income Fund invests primarily in U.S. government securities and in repurchase agreements collateralized by such securities. The Fund’s investments in fixed income securities are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. The Fund’s net asset value and yield are not guaranteed by the U.S. government or by its agencies, instrumentalities or sponsored enterprises. The guarantee on U.S. government securities applies only to the underlying securities of the Fund if held to maturity and not to the value of the Fund’s shares. The Fund’s investments in mortgage-backed securities are subject to prepayment risks. These risks may result in greater share price volatility. The Fund may make substantial investments in derivative instruments, including options, financial futures. Eurodollar futures contracts, swaps, options on swaps, structured securities and other derivative investments. Derivative instruments may involve a high degree of financial risk. These risks include the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instrument; risks of default by a counterparty; and the risks that transactions may not be liquid.

The Inflation Protected Securities Fund invests primarily in inflation protected securities of varying maturities issued by the U.S. Treasury and other U.S. and non-U.S. Government agencies and corporations. The remainder of the Fund’s assets may be invested in other fixed income securities, including U.S. government securities, asset-backed securities, mortgage-backed securities, corporate securities, high yield securities and securities issued by foreign corporate and governmental issuers. Inflation protected securities are fixed income securities whose interest and principal payments are periodically adjusted according to the rate of inflation. The market value of inflation protected securities is not guaranteed, and will fluctuate in response to changes in real interest rates. Fixed income securities are subject to the risks associated with debt securities, including credit and interest rate risk. High yield, lower rated fixed income securities involve greater price volatility and present greater risks than higher rated fixed income securities. Fixed income securities issued by foreign or emerging market issuers are less liquid and are subject to greater price volatility than U.S. securities and will be subject to the risks of currency fluctuations and fluctuations due to sudden economic or political developments.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

The Short Duration Government Fund invests primarily in U.S. government securities and in repurchase agreements collateralized by such securities. The Fund’s investments in fixed income securities are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. The Fund is not a money market fund. Investors in this Fund should understand that the net asset value of the Fund will fluctuate, which may result in a loss of the principal amount invested. The Fund’s net asset value and yield are not guaranteed by the U.S. government or by its agencies, instrumentalities or sponsored enterprises. The guarantee on U.S. government securities applies only to the underlying securities of the Fund if held to maturity and not to the value of the Fund’s shares. The Fund’s investments in mortgage-backed securities are subject to prepayment risks. These risks may result in greater share price volatility. The Fund may make substantial investments in derivative instruments, including options, financial futures, Eurodollar futures contracts, swaps, options on swaps, structured securities and other derivative investments. Derivative instruments may involve a high degree of financial risk. These risks include the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instrument; risks of default by a counterparty; and the risks that transactions may not be liquid.

The Ultra-Short Duration Government Fund invests primarily in U.S. government securities, including securities representing an interest in or collateralized by adjustable rate and fixed rate mortgage loans or other mortgage-related securities, and in repurchase agreements collateralized by U.S. government securities. The Fund’s investments in fixed income securities are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. The Fund is not a money market fund. Investors in this Fund should understand that the net asset value of the Fund will fluctuate, which may result in a loss of the principal amount invested. The Fund’s net asset value and yield are not guaranteed by the U.S. government or by its agencies, instrumentalities or sponsored enterprises. The guarantee on U.S. government securities applies only to the underlying securities of the Fund if held to maturity and not to the value of the Fund’s shares. The Fund’s investments in mortgage-backed securities are subject to prepayment risks. These risks may result in greater share price volatility. The Fund may make substantial investments in derivative instruments, including options, financial futures, Eurodollar futures contracts, swaps, options on swaps, structured securities and other derivative investments. Derivative instruments may involve a high degree of financial risk. These risks include the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instrument; risks of default by a counterparty; and the risks that transactions may not be liquid.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

What Differentiates Goldman Sachs Asset
Management’s Fixed Income Investment Process?

At Goldman Sachs Asset Management, L.P. (“GSAM”), the goal of our fixed income investment process is to provide consistent, strong performance by actively managing our portfolios within a research-intensive, risk-managed framework.




		A key element of our fixed income investment philosophy is to evaluate the broadest global opportunity set to capture relative value across sectors and instruments. Our globally integrated investment process involves managing dynamically along the risk/return spectrum, as we continue to develop value-added strategies through: n Assess relative value among securities and sectors n Leverage the vast resources of GSAM in selecting securities for each portfolio n Team approach to decision making n Manage risk by avoiding significant sector and interest rate bets n Careful management of yield curve strategies — while closely managing portfolio duration Fixed Income portfolios that: n Include domestic and global investment options, income opportunities, and access to areas of specialization such as high yield n Capitalize on GSAM’s industry-renowned credit research capabilities n Use a risk-managed framework to seek total return, recognizing the importance of investors’ capital accumulation goals as well as their need for income

PORTFOLIO RESULTS

Enhanced Income Fund

Dear Shareholder:

This report provides an overview on the performance of the Goldman Sachs Enhanced Income Fund (the “Fund”) during the six-month reporting period that ended September 30, 2008.

Performance Review

Over the six-month period that ended September 30, 2008, the Fund’s Class A, B, Institutional, and Administration Shares generated cumulative total returns of –0.31%, –0.58%, –0.14%, and –0.16%, respectively. These returns compare to the 1.24% and 0.87% cumulative total returns of the Fund’s benchmarks, the Six-Month U.S. Treasury Bill Index and the One-Year U.S. Treasury Note Index, respectively, over the same time period.

Volatility, along with generally wider sector spreads, detracted from the Fund’s performance versus its benchmarks over the six-month period, particularly in the month of September. Overall, the Fund’s term structure positioning (i.e., its positioning relative to our interest rate expectations) had a slightly positive impact on performance. We believed that emergency policy responses (see below) were more likely to be fiscal in nature, but expected that there would also be monetary easing. At the cross-sector level, the Fund’s exposure (i.e., we held securities not represented in the benchmark indexes) to the corporate sector detracted from relative performance. In addition, overweight exposure to the asset-backed sector hurt performance as sector spreads widened. At the security level, our selection of corporate bonds within the financial sub-sector was a negative contributor to performance.

Market Review

During the reporting period, the global financial crisis reached historic proportions, rapidly spreading to the overall economy, prompting a historic response from policymakers. The month of September proved to be a turning point for the global financial markets. During September, the U.S. government seized mortgage giants Fannie Mae and Freddie Mac, helped to keep American International Group (“AIG”) solvent, announced the creation of a program designed to provide insurance for Money Market funds, passed the $700 billion Troubled Asset Recovery Program (“TARP”) and created a program through which the Federal Reserve Board (the “Fed”) will purchase commercial paper outright, among many other measures. Arguably the most pivotal event, the Lehman Brothers bankruptcy filing, led to historically wide spreads in the corporate sector, with the financial sub-sector leading the way. Yields on U.S. Treasuries rose during the six-month period, as rising food and energy prices triggered inflationary fears. With the exception of the mortgage sector, spread sectors experienced a dramatic widening as the financial system was shaken to its core.

Looking back, after improving in April, market sentiment took a turn for the worse in May and June, putting renewed pressure on all risky assets. A number of factors weighed on the mortgage market in the latter part of the second quarter, including renewed macroeconomic concerns, continued declines in home prices, weakening in the broader financial system and quarter-end balance sheet pressures. Non-agency mortgage spreads finished the second quarter tighter, as the sector rallied in April and May in response to improved financing and liquidity conditions. After reaching historic wide levels in August, agency mortgage spreads tightened in response to the government’s takeover of the government-sponsored enterprises (“GSEs”) on September 7. Agency mortgage passthrough spreads rallied, tightening close to 50 basis points the day following the

PORTFOLIO RESULTS

announcement. However, spreads then reversed course, moving wider toward the end of the third quarter, as extreme stress in money markets and heightened liquidity concerns weighed on the market.

As the third quarter came to a close, fundamentals in the housing market continued to deteriorate, with the S&P/Case-Shiller housing indices reaching record annual declines, but with some signs of a slowdown in the quarterly rates of decline. In addition, within the non-agency mortgage market, credit performance continued to deteriorate across sectors. Risk premiums in the non-agency mortgage market remained elevated, and the outlook for the sector remained volatile due to a number of factors, including concerns around housing and economic conditions, ratings uncertainty and delinquency and performance trends.

We expect that US economic growth will be negative in the coming quarters. Inflation is in retreat with oil prices down more than 25% from the highs seen in July and inflation expectations likely to give way to deflation concerns as global growth slows. However, we do not see deflation as a significant threat, due largely to policymakers’ extraordinary response to the financial crisis.

INVESTMENT OBJECTIVE

The Fund seeks to generate return in excess of traditional money market products while maintaining an emphasis on preservation of capital and liquidity. It is important to note that the Fund is not a money market fund and its net asset value will fluctuate.

Portfolio Composition

Within our sector exposures, we continue to emphasize shorter-term, higher quality securities that we believe offer an attractive yield advantage. The Fund continues to hold a significant position in short-term quasi-government securities, specifically agency debentures. Our allocation to short-term investments, or cash, decreased over the period. Within the corporate sector, we slightly decreased our overweight to financials as spreads widened significantly. We continue to look for attractive security selection opportunities to emerge in the mortgage sector as the GSE federal takeover and TARP take effect.

Since the conclusion of the reporting period ended September 30, 2008, we have continued to experience periods of extreme volatility in the financial markets. In particular, continued deleveraging, a lack a liquidity and uncertainty regarding the economy have led to increased investor risk aversion. Despite these challenges, we continue to follow our investment approach that includes actively managing the Fund’s portfolios within a research-intensive, risk-managed framework. We thank you for your investment and look forward to your continued confidence.

Goldman Sachs U.S. Fixed Income Management Team

October 22, 2008

FUND BASICS

Enhanced Income Fund

as of September 30, 2008

PERFORMANCE REVIEW


				Six-Month			One-Year			9-Month			30-Day
	Fund Total Return			U.S. Treasury			U.S. Treasury			Treasury			Standardized
April 1, 2008–September 30, 2008	(based on NAV)¹			Bill Index²			Note Index²			Composite Index³			Yield⁴


Class A		-0.31	%		1.24	%		0.87	%		1.06	%		3.10	%
Class B		-0.58			1.24			0.87			1.06			2.38
Institutional		-0.14			1.24			0.87			1.06			3.48
Administration		-0.16			1.24			0.87			1.06			3.15


¹	The net asset value (NAV) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance assumes the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges.
²	The Six-Month U.S. Treasury Bill Index and One-Year U.S. Treasury Note Index, as reported by Merrill Lynch, do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged index.
³	Effective May 31, 2008, the Fund has added the 9-month Treasury Composite Index as an additional benchmark against which to measure its performance. The 9-month Treasury Composite Index is comprised of the Six-Month U.S. Treasury Bill Index (50%) and the One-Year U.S. Treasury Note Index (50%). The Fund’s investment adviser believes that this benchmark represents a better comparison against which to measure the Fund’s performance. It is not possible to invest directly in an unmanaged index.
⁴	The 30-Day Standardized Yield of the Fund is calculated by dividing the net investment income per share (as defined by securities industry regulations) earned by the Fund over a 30-day period (ending on the stated month-end date) by the maximum public offering price per share of the Fund on the last day of the period. This number is then annualized. This yield does not necessarily reflect income actually earned and distributed by the Fund and, therefore, may not be correlated with the dividends or other distributions paid to shareholders.

STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS⁵


For the period ended 9/30/08	One Year			Five Years			Since Inception			Inception Date


Class A		-0.15	%		2.13	%		3.00	%	8/2/00
Class B		-4.38			N/A			-2.01		6/20/07
Institutional		1.74			2.82			3.58		8/2/00
Administration		1.59			2.63			3.35		8/2/00

⁵

The Standardized Average Annual Total Returns are average annual total returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 1.5% for Class A Shares and the assumed contingent deferred sales charge for Class B Shares (5% maximum declining to 1% in the sixth year). Because Institutional and Administration Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns.

The returns represent past performance. Past performance does not guarantee future results. The Fund’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Web site at: www.goldmansachsfunds.com to obtain the most recent month-end returns. Performance reflects expense limitations in effect. In their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

FUND BASICS

EXPENSE RATIOS⁶


	Net Expense Ratio (Current)			Gross Expense Ratio (Before Waivers)


Class A		0.59	%		0.76	%
Class B		1.34			1.51
Institutional		0.25			0.42
Administration		0.50			0.67

⁶

The expense ratios of the Fund, both current (net of any fee waivers or expense limitations) and before waivers (gross of any fee waivers or expense limitations), are as set forth above according to the most recent publicly available Prospectuses for the Fund and may differ from the expense ratios disclosed in the Financial Highlights in this report. The waivers and expense limitations are voluntary and may be modified or terminated at any time at the option of the investment adviser. If this occurs, the expense ratios may change without shareholder approval.

SECTOR ALLOCATION⁷

Percentage of Net Assets

⁷

The percentage shown for each investment category of the Fund reflects the value of investments in that category as a percentage of net assets (excluding securities lending collateral, if any.) Securities lending collateral represent 29.5% and 2.3% of the Fund’s net assets, respectively, at September 30, 2008 and March 31, 2008. Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.


⁸	“Agency Debentures” include agency securities offered by companies such as Fannie Mae and Freddie Mac, which operate under a government charter. While they have to report to a government regulator, their assets are not explicitly guaranteed by the government and they otherwise operate like any other publicly traded company.

PORTFOLIO RESULTS

Government Income Fund

Dear Shareholder:

This report provides an overview on the performance of the Goldman Sachs Government Income Fund (the “Fund”) during the six-month reporting period that ended September 30, 2008.

Performance Review

Over the six-month period that ended September 30, 2008, the Fund’s Class A, B, C, Institutional, Service, IR and R Shares, generated cumulative total returns, without sales charges, of –0.39%, –0.69%, –0.77%, –0.22%, –0.47%, –0.33% and –0.46% respectively. These returns compare to the 0.73% cumulative total return of the Fund’s benchmark, the Lehman Brothers Government/Mortgage Index, over the same time period.

Our security selection of non-agency-backed adjustable-rate mortgages was the key detractor from the Fund’s performance during the reporting period. Despite their seniority in the capital structure and substantial amount of credit enhancement, these securities sold off significantly due to the slowdown in the housing market, illiquidity and forced selling of high quality assets by leveraged investors. Another detractor was our security selection of government-related securities. These securities performed poorly in the month of September due to volatility, coupled with risk aversion towards off-the-run (i.e., not the most currently issued bond of a particular maturity) securities. Overall, the Fund’s term structure positioning (i.e., its positioning relative to our interest rate expectations) had a positive impact on performance.

Market Review

During the reporting period, the global financial crisis reached historic proportions, rapidly spreading to the overall economy, prompting a historic response from policymakers. The month of September proved to be a turning point for the global financial markets. During September, the U.S. government seized mortgage giants Fannie Mae and Freddie Mac, helped to keep American International Group (“AIG”) solvent, announced the creation of a program designed to provide insurance for money market funds, passed the $700 billion Troubled Asset Recovery Program (“TARP”) and created a program through which the Federal Reserve Board (the “Fed”) will purchase commercial paper outright, among many other measures. Arguably the most pivotal event, the Lehman Brothers bankruptcy filing, led to historically wide spreads in the corporate sector, with the financial sub-sector leading the way. Yields on U.S. Treasuries rose during the six-month period, as rising food and energy prices triggered inflationary fears. With the exception of the mortgage sector, spread sectors experienced a dramatic widening as the financial system was shaken to its core.

PORTFOLIO RESULTS

announcement. However, spreads then reversed course, moving wider toward the end of the third quarter, as extreme stress in money markets and heightened liquidity concerns weighed on the market.

We expect that U.S. economic growth will be negative in the coming quarters. Inflation is in retreat with oil prices down more than 25% from the highs seen in July and inflation expectations likely to give way to deflation concerns as global growth slows. However, we do not see deflation as a significant threat, due largely to policymakers’ extraordinary response to the financial crisis.

INVESTMENT OBJECTIVE

The Fund seeks a high level of current income, consistent with safety of principal.

Portfolio Composition

At the end of the period, we held a modest short duration bias relative to the benchmark.

We continue to focus on sectors and securities that are not highly susceptible to an economic slowdown. To take advantage of changing relative valuations, we tactically adjusted the Fund’s exposures and added value through security-specific trades. Following recent spread widening, we increased our passthrough exposure. We decreased the Fund’s allocation to municipal securities as the auction rate security market dried up. We continue to look for attractive security selection opportunities to emerge in the mortgage sector as the GSE federal takeover and TARP take effect.

Goldman Sachs U.S. Fixed Income Investment Management Team

October 22, 2008

FUND BASICS

Government Income Fund

as of September 30, 2008

PERFORMANCE REVIEW


	Fund Total Return			Lehman Brothers Govt./			30-Day
April 1, 2008–September 30, 2008	(based on NAV)¹			Mortgage Index²			Standardized Yield³


Class A		-0.39	%		0.73	%		4.27	%
Class B		-0.69			0.73			3.71
Class C		-0.77			0.73			3.71
Institutional		-0.22			0.73			4.82
Service		-0.47			0.73			4.31
Class IR		-0.33			0.73			4.68
Class R		-0.46			0.73			4.22


¹	The net asset value (NAV) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance assumes the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges.
²	The Lehman Brothers Government/Mortgage Index, an unmanaged index, does not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged index.
³	The 30-Day Standardized Yield of the Fund is calculated by dividing the net investment income per share (as defined by securities industry regulations) earned by the Fund over a 30-day period (ending on the stated month-end date) by the maximum public offering price per share of the Fund on the last day of the period. This number is then annualized. This yield does not necessarily reflect income actually earned and distributed by the Fund and, therefore, may not be correlated with the dividends or other distributions paid to shareholders.

STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS⁴


For the period ended 9/30/08	One Year			Five Years			Ten Years			Since Inception			Inception Date


Class A		-0.55	%		2.55	%		4.22	%		5.46	%	2/10/93
Class B		-1.75			2.33			3.91			4.89		5/1/96
Class C		2.35			2.74			3.91			4.55		8/15/97
Institutional		4.47			3.89			5.10			5.73		8/15/97
Service		3.95			3.38			4.56			5.67	⁵	2/10/93
Class IR		N/A			N/A			N/A			1.52		11/30/07
Class R		N/A			N/A			N/A			1.18		11/30/07


⁴	The Standardized Average Annual Total Returns are average annual total returns or cumulative total returns (only if the performance period is one year or less) as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 4.5% for Class A Shares, the assumed contingent deferred sales charge for Class B Shares (5% maximum declining to 0% after six years), and the assumed contingent deferred sales charge for Class C Shares (1% if redeemed within 12 months of purchase). Because Institutional, Service, Class IR and R Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns.
⁵	Performance data for Service Shares prior to 8/15/97 (commencement of operations) is that of Class A Shares (excluding the impact of front-end sales charges applicable to Class A Shares since Service Shares are not subject to any sales charges). Performance of Class A Shares in the Fund reflects the expenses applicable to the Fund’s Class A Shares. The fees applicable to Service Shares are different from those applicable to Class A Shares which impact performance ratings and rankings for a class of shares.

FUND BASICS

EXPENSE RATIOS⁵


	Net Expense Ratio (Current)			Gross Expense Ratio (Before Waivers)


Class A		0.92	%		1.00	%
Class B		1.67			1.75
Class C		1.67			1.75
Institutional		0.58			0.66
Service		1.08			1.16
Class IR		0.67			0.75
Class R		1.17			1.25

⁵

SECTOR ALLOCATION⁶

Percentage of Net Assets

⁶

The percentage shown for each investment category of the Fund reflects the value of investments in that category as a percentage of net assets (excluding securities lending collateral, if any.) Securities lending collateral represent 5.3% and 3.7% of the Fund’s net assets, respectively, at September 30, 2008 and March 31, 2008. Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.


⁷	“Federal Agencies” are mortgage backed securities that consist of Government National Mortgage Association (“GNMA”), Federal National Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corp. (“FHLMC”). GNMA instruments are backed by the full faith and credit of the U.S. Government.


⁸	“Agency Debentures” include agency securities offered by companies such as FNMA and FHLMC, which operate under a government charter. While they have to report to a government regulator, their assets are not explicitly guaranteed by the government and they otherwise operate like any other publicly traded company.

PORTFOLIO RESULTS

Inflation Protected Securities Fund

Dear Shareholder:

This report provides an overview on the performance of the Goldman Sachs Inflation Protected Securities Fund (the “Fund”) during the six-month reporting period that ended September 30, 2008.

Performance Review

Over the six-month period that ended September 30, 2008, the Fund’s Class A, C, Institutional, IR and R Shares generated cumulative total returns, without sales charges, of –4.10%, –4.54%, –3.93%, –3.98% and –4.21%, respectively. These returns compare to the –3.81% cumulative total return of the Fund’s benchmark, the Lehman Brothers U.S. TIPS Index, over the same time period.

The Fund’s underperformance versus the benchmark was largely the result of our Treasury Inflation Protected Securities (“TIPS”) selection. Against the backdrop of high and rising commodity prices, break-evens (the difference between yield on a comparable fixed-rate bond and yield on an inflation-linked bond) remained at elevated levels throughout the period. However, during the extreme flight to quality in the month of September, TIPS underperformed nominal Treasuries as investors shunned everything but the most very liquid assets. Specifically, we were overweight 20-year TIPS as we had expected higher commodity prices to work their way through the broader economy. However, this did not occur as commodity prices subsequently moved sharply lower.

Market Review

During the reporting period, the global financial crisis reached historic proportions, rapidly spreading to the overall economy, prompting a historic response from policymakers. The month of September proved to be a turning point for the global financial markets. During September, the U.S. government seized mortgage giants Fannie Mae and Freddie Mac, helped to keep American International Group (“AIG”) solvent, announced the creation of a program designed to provide insurance for money market funds, passed the $700 billion Troubled Asset Recovery Program (“TARP”) and created a program through which the Federal Reserve Board (the “Fed”) will purchase commercial paper outright, among many other measures. Arguably the most pivotal event, the Lehman Brothers bankruptcy filing, led to historically wide spreads in the corporate sector, with the financial sub-sector leading the way. Yields on U.S. Treasuries rose during the six-month period, as rising food and energy prices triggered inflationary fears. With the exception of the mortgage sector, spread sectors experienced a dramatic widening as the financial system was shaken to its core.

Looking back, after improving in April, market sentiment took a turn for the worse in May and June, putting renewed pressure on all risky assets. A number of factors weighed on the mortgage market in the latter part of the second quarter, including renewed macroeconomic concerns, continued declines in home prices, weakening in the broader financial system and quarter-end balance sheet pressures. Non-agency mortgage spreads finished the second quarter tighter, as the sector rallied in April and May in response to improved financing and liquidity conditions. After reaching historic wide levels in August, agency mortgage spreads tightened significantly in response to the government’s takeover of the government-sponsored enterprises (“GSEs”) on September 7. Agency mortgage passthrough spreads rallied, tightening close to 50 basis points the day following the announcement. However, spreads then reversed course, moving wider toward the end of the third quarter, as extreme stress in money markets and heightened liquidity concerns weighed on the market.

PORTFOLIO RESULTS

INVESTMENT OBJECTIVE

The Fund seeks real return consistent with preservation of capital. Real return is the return on an investment adjusted for inflation.

Portfolio Composition

The Fund invests primarily in inflation-protected securities of varying maturities issued by the U.S. Treasury and other U.S. and non-U.S. government agencies and corporations. The Fund can also diversify its portfolio by investing in other fixed income securities such as U.S. government, asset-backed, mortgage-backed, corporate securities and high yield, as well as securities issued by foreign corporate and government issuers.

Inflation protected securities are income-generating instruments whose interest and principal payments are adjusted for inflation. The inflation adjustment, which is typically applied daily to the principal of the bond, follows a designated inflation index, such as the Consumer Price Index for Urban Consumers (“CPIU”). The Fund can provide investors with a hedge against inflation, as it helps preserve the purchasing power of an investment.

Because of this inflation adjustment feature, inflation protected bonds typically have lower yields than conventional fixed-rate bonds.

Goldman Sachs U.S. Fixed Income Investment Management Team

October 22, 2008

FUND BASICS

Inflation Protected Securities Fund

as of September 30, 2008

PERFORMANCE REVIEW


	Fund Total Return			Lehman Brothers			30-Day
April 1, 2008–September 30, 2008	(based on NAV)¹			U.S. TIPS Index²			Standardized Yield³


Class A		-4.10	%		-3.81	%		7.47	%
Class C		-4.54			-3.81			7.05
Institutional		-3.93			-3.81			8.19
Class IR		-3.98			-3.81			8.05
Class R		-4.21			-3.81			7.59


¹	The net asset value (NAV) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance assumes the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges.

²	The Lehman Brothers U.S. TIPS Index represents securities that protect against adverse inflation and provide a minimum level of real return. To be included in this index, bonds must have cash flows linked to an inflation index, be sovereign issues denominated in U.S. currency, and have more than one year to maturity, and, as a portion of the index, total a minimum amount outstanding of 100 million U.S. dollars. Individuals cannot invest directly in an index.

³	The 30-Day Standardized Yield of the Fund is calculated by dividing the net investment income per share (as defined by securities industry regulations) earned by the Fund over a 30-day period (ending on the stated month-end date) by the maximum public offering price per share of the Fund on the last day of the period. This number is then annualized. This yield does not necessarily reflect income actually earned and distributed by the Fund and, therefore, may not be correlated with the dividends or other distributions paid to shareholders.

STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS⁴

For the period ended 9/30/08

One Year

Since Inception

Inception Date

Class A

1.48

2.45

8/31/07

Class C

4.78

6.36

8/31/07

Institutional

7.06

7.52

8/31/07

Class IR

N/A

1.76

11/30/07

Class R

N/A

1.36

11/30/07

⁴

The Standardized Average Annual Total Returns are average annual or cumulative total returns (only if the performance period is one year or less) as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 4.5% for Class A Shares and the assumed contingent deferred sales charge for Class C Shares (1% if redeemed within 12 months of purchase). Because Institutional, Class IR and R Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns.

FUND BASICS

EXPENSE RATIOS⁵


	Net Expense Ratio (Current)			Gross Expense Ratio (Before Waivers)


Class A		0.67	%		3.31	%
Class C		1.42			4.06
Institutional		0.33			2.97
Class IR		0.42			3.06
Class R		0.92			3.56

⁵

The expense ratios of the Fund, both current (net of applicable fee waivers and/or expense limitations) and before waivers (gross of applicable fee waivers and/or expense limitations), are as set forth above according to the most recent publicly available Prospectuses for the Fund and may differ from the expense ratios disclosed in the Financial Highlights in this report. Applicable waivers and expense limitations are voluntary and may be modified or terminated at any time at the option of the investment adviser. If this occurs, the expense ratios may change without shareholder approval.

SECTOR ALLOCATION⁶

Percentage of Net Assets

⁶

The percentage shown for each investment category of the Fund reflects the value of investments in that category as a percentage of net assets (excluding securities lending collateral, if any.) Securities lending collateral represent 31.2% and 28.4% of the Fund’s net assets, respectively, at September 30, 2008 and March 31, 2008. Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.


⁷	“U.S. Treasury Obligations” percentages are grouped by effective maturity. The weighted average maturity is 8.7 and 8.5 years, respectively.

PORTFOLIO RESULTS


	Short Duration Government Fund

Dear Shareholder:

This report provides an overview on the performance of the Goldman Sachs Short Duration Government Fund (the “Fund”) during the six-month reporting period that ended September 30, 2008.

Performance Review

Over the six-month period that ended September 30, 2008, the Fund’s Class A, B, C, Institutional, Service and IR Shares generated cumulative total returns, without sales charges, of 1.19%, 0.89%, 0.92%, 1.36%, 1.21% and 1.32%, respectively. These returns compare to the 0.95% cumulative total return of the Fund’s benchmark, the Two-Year U.S. Treasury Note Index, over the same time period.

Our security selection of agency-backed adjustable-rate mortgages was the key contributor to the Fund’s performance during the reporting period. In particular, certain of the Fund’s Fannie Mae and Freddie Mac adjustable-rate mortgage (“ARM”) holdings performed well in the month of September following the U.S. government’s takeover of these entities.

Overall, the Fund’s term structure positioning (i.e., its positioning relative to our interest rate expectations) also had a positive impact on its relative performance. More specifically, the Fund’s underweight position in the two-year portion of the U.S. Treasury yield curve helped performance as their yields rose over the reporting period.

Market Review

During the reporting period, the global financial crisis reached historic proportions, rapidly spreading to the overall economy, prompting a historic response from policymakers. The month of September proved to be a turning point for the global financial markets. During September, the U.S. government seized mortgage giants Fannie Mae and Freddie Mac, helped to keep American International Group (“AIG”) solvent, announced the creation of a program to provide insurance for money market funds, passed the $700 billion Troubled Asset Recovery Program (“TARP”) and created a program through which the Federal Reserve Board (the “Fed”) will purchase commercial paper outright, among many other measures. Arguably the most pivotal event, the Lehman Brothers bankruptcy filing, led to historically wide spreads in the corporate sector, with the financial sub-sector leading the way. Yields on U.S. Treasuries rose during the six-month period, as rising food and energy prices triggered inflationary fears. With the exception of the mortgage sector, spread sectors experienced a dramatic widening as the financial system was shaken to its core.

Looking back, after improving in April, market sentiment took a turn for the worse in May and June, putting renewed pressure on all risky assets. A number of factors weighed on the mortgage market in the latter part of the second quarter, including renewed macroeconomic concerns, continued declines in home prices, weakening in the broader financial system and quarter-end balance sheet pressures. Non-agency mortgage spreads finished the second quarter tighter, as the sector rallied in April and May in response to improved financing and liquidity conditions. After reaching historic wide levels in August, agency mortgage spreads tightened significantly in response to the government’s takeover of the government-sponsored enterprises (“GSEs”) on September 7. Agency mortgage passthrough spreads rallied, tightening close to 50 basis points the day following the announcement. However, spreads then reversed course, moving wider toward the end of

PORTFOLIO RESULTS

the third quarter, as extreme stress in money markets and heightened liquidity concerns weighed on the market.

INVESTMENT OBJECTIVE

The Fund seeks a high level of current income and may also consider the potential for capital appreciation.

Portfolio Composition

At the end of the period, we held a modest short duration bias relative to the benchmark. We continue to focus on sectors and securities that we believe are not highly susceptible to an economic slowdown. Within mortgages, we favor higher quality securities that can withstand a significant weakness in the housing market.

As valuations changed over the period, we tactically adjusted the Fund’s exposures to take advantage of changing relative opportunities within the market. We modestly decreased the Fund’s allocation to agencies, ARMs and passthrough mortgages. In contrast, we increased the Fund’s allocation to short-term investments, or cash equivalents.

Goldman Sachs U.S. Fixed Income Investment Management Team

October 22, 2008

FUND BASICS

Short Duration Government Fund

as of September 30, 2008

PERFORMANCE REVIEW


	Fund Total Return			Two-Year U.S.			30-Day
April 1, 2008–September 30, 2008	(based on NAV)¹			Treasury Note Index²			Standardized Yield³


Class A		1.19	%		0.95	%		3.27	%
Class B		0.89			0.95			2.73
Class C		0.92			0.95			2.59
Institutional		1.36			0.95			3.68
Service		1.21			0.95			3.17
Class IR		1.32			0.95			3.58


¹	The net asset value (NAV) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance assumes the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges.
²	The Two-Year U.S. Treasury Note Index, as reported by Merrill Lynch, does not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged index.
³	The 30-Day Standardized Yield of the Fund is calculated by dividing the net investment income per share (as defined by securities industry regulations) earned by the Fund over a 30-day period (ending on the stated month-end date) by the maximum public offering price per share of the Fund on the last day of the period. This number is then annualized. This yield does not necessarily reflect income actually earned and distributed by the Fund and, therefore, may not be correlated with the dividends or other distributions paid to shareholders.

STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS⁴


For the period ended 9/30/08	One Year			Five Years			Ten Years			Since Inception			Inception Date


Class A		4.68	%		3.05	%		4.23	%		4.62	%	5/1/97
Class B		4.15			2.87			3.80			4.19		5/1/97
Class C		5.04			2.73			3.65			3.91		8/15/97
Institutional		7.20			3.88			4.83			6.03		8/15/88
Service		6.68			3.37			4.31			4.83		4/10/96
Class IR		N/A			N/A			N/A			5.04		11/30/07


⁴	The Standardized Average Annual Total Returns are average annual total returns or cumulative total returns (only if the performance period is one year or less) as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 2% for Class A Shares, the assumed contingent deferred sales charge for Class B Shares (2% maximum declining to 0% after three years) and the assumed contingent deferred sales charge for Class C Shares (1% if redeemed within 12 months of purchase). Because Institutional, Service and Class IR Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns.
	The returns represent past performance. Past performance does not guarantee future results. The Fund’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Web site at: www.goldmansachsfunds.com to obtain the most recent month-end returns. Performance reflects expense limitations in effect. In their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

FUND BASICS

EXPENSE RATIOS⁵


	Net Expense Ratio (Current)			Gross Expense Ratio (Before Waivers)


Class A		0.88	%		0.94	%
Class B		1.48			1.69
Class C		1.63			1.69
Institutional		0.54			0.60
Service		1.04			1.10
Class IR		0.63			0.69

⁵

SECTOR ALLOCATION⁶

Percentage of Net Assets

⁶

The percentage shown for each investment category of the Fund reflects the value of investments in that category as a percentage of net assets (excluding securities lending collateral, if any.) Securities lending collateral represent 14.2% and 9.3% of the Fund’s net assets, respectively, at September 30, 2008 and March 31, 2008. Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.


⁷	“Federal Agencies” are mortgage backed securities that consist of Government National Mortgage Association (“GNMA”), Federal National Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corp. (“FHLMC”). GNMA instruments are backed by the full faith and credit of the U.S. Government.


⁸	“Agency Debentures” include agency securities offered by companies such as Fannie Mae and Freddie Mac, which operate under a government charter. While they have to report to a government regulator, their assets are not explicitly guaranteed by the government and they otherwise operate like any other publicly traded company.

PORTFOLIO RESULTS

Ultra-Short Duration Government Fund

Dear Shareholder:

This report provides an overview on the performance of the Goldman Sachs Ultra-Short Duration Government Fund (the “Fund”) during the six-month reporting period that ended September 30, 2008.

Performance Review

Over the six-month period that ended September 30, 2008, the Fund’s Class A, Institutional, Service and IR Shares generated cumulative total returns, without sales charges, of 0.36%, 0.64%, 0.27% and 0.48%, respectively. These returns compare to the 1.24% and 0.87% cumulative total returns of the Fund’s benchmarks, the Six-Month U.S. Treasury Bill Index and the One-Year U.S. Treasury Note Index, respectively, over the same time period.

Periods of extreme volatility, coupled with generally wider sector spreads detracted from the Fund’s performance versus its benchmarks over the six-month period, particularly in the month of September. Overall, the Fund’s term structure positioning (i.e., its positioning relative to our interest rate expectations) had a slightly positive impact on performance. We believed that emergency policy responses (see below) were more likely to be fiscal in nature, but expected that there would also be monetary easing. At the cross-sector level, the portfolio’s exposure (i.e., we held securities not represented in the benchmarks) to the mortgage sector, specifically agencies, contributed positively to performance. However, these positive factors were not enough to offset our security selection of mortgage-related asset-backed securities during the period.

Market Review

During the reporting period, the global financial crisis reached historic proportions, rapidly spreading to the overall economy, prompting a historic response from policymakers. The month of September proved to be a turning point for the global financial markets. During September, the U.S. government seized mortgage giants Fannie Mae and Freddie Mac, helped to keep American International Group (“AIG” ) solvent, announced the creation of a program designed to provide insurance for money market funds, passed the $700 billion Troubled Asset Recovery Program (“TARP”) and created a program through which the Federal Reserve Board (the “Fed”) will purchase commercial paper outright, among many other measures. Arguably the most pivotal event, the Lehman Brothers bankruptcy filing, led to historically wide spreads in the corporate sector, with the financial sub-sector leading the way. Yields on U.S. Treasuries rose during the six-month period, as rising food and energy prices triggered inflationary fears. With the exception of the mortgage sector, spread sectors experienced a dramatic widening as the financial system was shaken to its core.

PORTFOLIO RESULTS

announcement. However, spreads then reversed course, moving wider toward the end of the third quarter, as extreme stress in money markets and heightened liquidity concerns weighed on the market.

INVESTMENT OBJECTIVE

The Fund seeks a high level of current income, consistent with low volatility of principal.

Portfolio Composition

Over the period, we continued to focus on security selection and subsector strategies across the collateralized and government sectors. At the end of the period, the Fund held a neutral duration position versus the benchmarks as we believe a slowdown in global growth appears imminent.

Within mortgages, our primary exposures were within high quality non-agency adjustable-rate mortgages (“ARMs”) and passthrough mortgages. We tactically adjusted the Fund’s collateralized and government exposures to take advantage of changing relative opportunities. In the current market we favor higher quality securities that can withstand a significant slowdown in the housing market.

Goldman Sachs U.S. Fixed Income Investment Management Team

October 22, 2008

FUND BASICS

Ultra-Short Duration Government Fund

as of September 30, 2008

PERFORMANCE REVIEW


				Six-Month			One-Year			9-Month			30-Day
	Fund Total Return			U.S. Treasury			U.S. Treasury			Treasury			Standardized
April 1, 2008–September 30, 2008	(based on NAV)¹			Bill Index²			Note Index²			Composite Index³			Yield⁴


Class A		0.36	%		1.24	%		0.87	%		1.06	%		3.66	%
Institutional		0.64			1.24			0.87			1.06			4.06
Service		0.27			1.24			0.87			1.06			3.56
Class IR		0.48			1.24			0.87			1.06			3.96


¹	The net asset value (NAV) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance assumes the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges.
²	The Six-Month U.S. Treasury Bill Index and One-Year U.S. Treasury Note Index, as reported by Merrill Lynch, do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged index.
³	Effective May 31, 2008, the Fund has added the 9-month Treasury Composite Index as an additional benchmark against which to measure its performance. The 9-month Treasury Composite Index is comprised of the Six-Month U.S. Treasury Bill Index (50%) and the One-Year U.S. Treasury Note Index (50%). The Fund’s investment adviser believes that this benchmark represents a better comparison against which to measure the Fund’s performance. It is not possible to invest directly in an unmanaged index.
⁴	The 30-Day Standardized Yield of the Fund is calculated by dividing the net investment income per share (as defined by securities industry regulations) earned by the Fund over a 30-day period (ending on the stated month-end date) by the maximum public offering price per share of the Fund on the last day of the period. This number is then annualized. This yield does not necessarily reflect income actually earned and distributed by the Fund and, therefore, may not be correlated with the dividends or other distributions paid to shareholders.

STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS⁵


For the period ended 9/30/08	One Year			Five Years			Ten Years			Since Inception			Inception Date


Class A		-0.55	%		2.39	%		3.33	%		3.96	%	5/15/95
Institutional		1.40			3.05			3.90			4.53		7/17/91
Service		0.89			2.57			3.39			3.61		3/27/97
Class IR		N/A			N/A			N/A			0.68		11/30/07

⁵

The Standardized Average Annual Total Returns are average annual total returns or cumulative total returns (only if the performance period is one year or less) as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 1.5% for Class A Shares. Because Institutional, Service and Class IR Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns.

FUND BASICS

EXPENSE RATIOS⁶


	Net Expense Ratio (Current)			Gross Expense Ratio (Before Waivers)


Class A		0.83	%		0.87	%
Institutional		0.49			0.53
Service		0.99			1.03
Class IR		0.58			0.62

⁶

SECTOR ALLOCATION⁷

Percentage of Net Assets


⁷	The percentage shown for each investment category of the Fund reflects the value of investments in that category as a percentage of net assets (excluding securities lending collateral, if any.) Securities lending collateral represent 21.3% and 4.9% of the Fund’s net assets, respectively, at September 30, 2008 and March 31, 2008. Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.

⁸	“Federal Agencies” are mortgage backed securities that consist of Government National Mortgage Association (“GNMA”), Federal National Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corp. (“FHLMC”). GNMA instruments are backed by the full faith and credit of the U.S. Government.

⁹	“Agency Debentures” include agency securities offered by companies such as Fannie Mae and Freddie Mac, which operate under a government charter. While they have to report to a government regulator, their assets are not explicitly guaranteed by the government and they otherwise operate like any other publicly traded company.

GOLDMAN SACHS ENHANCED INCOME FUND

Schedule of Investments

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – 21.0%


	Banks – 5.7%
	Bank of America Corp.
$	$	975,000		7.400	%		01/15/11	$	955,117
	Citigroup, Inc.
		1,050,000		4.125			02/22/10		969,011
		325,000		5.250			02/27/12		287,871
	JPMorgan Chase & Co.
		725,000		6.500			01/15/09		721,255
		1,550,000		7.875			06/15/10		1,580,735
	Keybank National Association
		450,000		7.300			05/01/11		408,989
	Kreditanstalt fuer Wiederaufbau MTN^(a)
		7,200,000		3.050			11/07/09		7,092,360
	National Australia Bank Ltd.^(a)
		875,000		8.600			05/19/10		916,116
	Union Planters Corp.
		1,125,000		7.750			03/01/11		1,049,609
	Wachovia Bank NA
		250,000		5.800			12/01/08		247,416
	Wells Fargo & Co.
		400,000		4.375			01/31/13		367,689
	Wells Fargo Bank NA
		525,000		7.550			06/21/10		543,052

									15,139,220


	Brokerage – 0.5%
	Credit Suisse First Boston Mortgage Securities, Inc.
		250,000		4.125			01/15/10		247,311
	Morgan Stanley & Co.
		1,350,000		5.050			01/21/11		972,088

									1,219,399


	Captive Financial – 0.7%
	American Express Centurion Bank
		1,250,000		5.200			11/26/10		1,158,919
	Caterpillar Financial Services Corp.
		725,000		4.850			12/07/12		705,676

									1,864,595


	Construction Machinery – 0.8%
	John Deere Capital Corp.
		2,000,000		5.400			04/07/10		2,033,436


	Electric^(a) – 0.3%
	Pacific Gas & Electric Co.
		725,000		4.200			03/01/11		708,325


	Energy^(a) – 0.1%
	Conoco Funding Co.
		275,000		6.350			10/15/11		284,797


	Food and Beverage^(a) – 0.5%
	Kellogg Co.
		1,375,000		5.125			12/03/12		1,371,080


	Health Care Services^(a) – 0.5%
	UnitedHealth Group, Inc.
		1,400,000		5.125			11/15/10		1,409,750


	Life Insurance – 5.7%
	AXA Financial, Inc.^(a)
$		2,125,000		7.750			08/01/10		2,226,256
	Genworth Financial, Inc.
		1,550,000		5.231			05/16/09		1,316,506
	ING Security Life Institutional Funding^(b)
		2,500,000		4.250			01/15/10		2,477,125
	Monumental Global Funding II^(b)
		800,000		3.900			06/15/09		788,726
		750,000		4.375			07/30/09		740,335
	Nationwide Life Global Funding I^(b)
		1,175,000		5.450			10/02/12		1,176,651
	Principal Financial Group Australia^(a)(b)
		550,000		8.200			08/15/09		557,780
	Protective Life Secured Trusts
		350,000		3.700			11/24/08		349,089
	Prudential Financial, Inc.
		3,625,000		5.800			06/15/12		3,612,646
	TIAA Global Markets, Inc.^(a)(b)
		1,900,000		5.125			10/10/12		1,934,793

									15,179,907


	Media^(a) – 0.4%
	The Walt Disney Co.
		1,100,000		4.700			12/01/12		1,094,600


	Noncaptive-Financial – 2.6%
	American General Finance Corp.
		1,500,000		4.875			05/15/10		933,023
		1,000,000		4.000			03/15/11		450,000
	Countrywide Home Loans, Inc.
		1,025,000		4.000			03/22/11		896,875
	General Electric Capital Corp.
		550,000		4.125			09/01/09		538,569
		1,400,000		5.200			02/01/11		1,355,872
	HSBC Finance Corp.
		2,825,000		4.125			11/16/09		2,768,280

									6,942,619


	Real Estate Investment Trust^(a) – 1.2%
	Simon Property Group LP
		1,522,000		4.875			03/18/10		1,502,661
	Westfield Capital Corp. Ltd.^(b)
		1,825,000		4.375			11/15/10		1,776,820

									3,279,481


	Wireless Telecommunications^(a) – 0.3%
	Vodafone Group PLC
		575,000		7.750			02/15/10		592,641
		200,000		5.350			02/27/12		196,141

									788,782


	Wirelines Telecommunications – 1.7%
	Ameritech Capital Funding
		375,000		6.250			05/18/09		381,134
	AT&T, Inc.^(a)
		1,375,000		4.125			09/15/09		1,371,579

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

GOLDMAN SACHS ENHANCED INCOME FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – (continued)
	Wirelines Telecommunications – (continued)

	Deutsche Telekom International Finance BV
$	$	1,500,000		8.500	%		06/15/10	$	1,557,120
	Verizon Global Funding Corp.^(a)
		1,225,000		7.250			12/01/10		1,274,723

									4,584,556


	TOTAL CORPORATE BONDS
	(Cost $58,438,933)							$	55,900,547




Agency Debentures – 26.8%


	FHLB
	$	12,000,000		5.250	%		01/16/09	$	12,072,336
		4,600,000		3.625	^(c)		09/16/11		4,600,860
	FHLMC
		5,500,000		0.000	^(d)		02/02/09		5,444,114
		9,000,000		5.250			06/04/10		9,136,251
		6,000,000		3.200			06/10/10		5,975,508
	FNMA
		13,600,000		0.000	^(c)(d)		02/23/09		13,438,405
		13,600,000		0.000	^(c)(d)		02/24/09		13,437,290
		4,100,000		5.080			05/14/10		4,153,558
		3,100,000		5.500			07/09/10		3,121,539


	TOTAL AGENCY DEBENTURES
	(Cost $71,359,368)							$	71,379,861




Asset-Backed Securities – 9.2%


	Autos – 5.5%
	AmeriCredit Automobile Receivables Trust Series 2005-DA, Class A3
	$	144,276		4.870	%		12/06/10	$	142,525
	AmeriCredit Automobile Receivables Trust Series 2006-AF, Class A3
		904,265		5.560			09/06/11		899,556
	Banc of America Securities Auto Trust Series 2006-G1, Class A3
		252,433		5.180			06/18/10		251,092
	Capital Auto Receivables Asset Trust Series 2007-3, Class A3A
		2,000,000		5.020			09/15/11		1,975,244
	Capital One Auto Finance Trust Series 2006-A, Class A3
		683,266		5.330			11/15/10		680,004
	Capital One Prime Auto Receivables Trust Series 2007-2, Class A3
		2,000,000		4.890			01/17/12		1,949,840
	Chase Manhattan Auto Owner Trust Series 2006-B, Class A4
		625,000		5.110			04/15/14		615,750
	Daimler Chrysler Auto Trust Series 2006-D, Class A3
		397,416		4.980			02/08/11		396,478
	Harley-Davidson Motorcycle Trust Series 2006-2, Class A2
		698,867		5.350			03/15/13		685,145
	Household Automotive Trust Series 2005-2, Class A3
		52,617		4.370			05/17/10		52,419


Asset-Backed Securities – (continued)


	Autos – (continued)
	Long Beach Auto Receivables Trust Series 2006-A, Class A4
		2,500,000		5.500			05/15/13		2,432,570
	National City Auto Receivables Trust Series 2004-A, Class A4
		56,516		2.880			05/15/11		56,497
	Nissan Auto Receivables Owner Trust Series 2006-B, Class A3
		86,948		5.160			02/15/10		87,138
	Nissan Auto Receivables Owner Trust Series 2007-B, Class A3
		1,500,000		5.030			05/16/11		1,497,520
	USAA Auto Owner Trust Series 2007-2, Class A3
		2,500,000		4.900			02/15/12		2,481,960
	World Omni Auto Receivables Trust Series 2005-A, Class A4
		327,751		3.820			11/14/11		327,476

									14,531,214


	Credit Card – 3.2%
	Bank of America Credit Card Trust Series 2006-A16, Class A16
		425,000		4.720			05/15/13		418,357
	Capital One Multi-Asset Execution Trust Series 2007-A9, Class A9
		5,600,000		4.950			08/15/12		5,576,778
	Chase Issuance Trust Series 2007-A15, Class A
		2,500,000		4.960			09/17/12		2,482,481

									8,477,616


	Home Equity^(e) – 0.3%
	Aegis Asset Backed Securities Trust Series 2006-1, Class A1
		132,533		3.287			01/25/37		128,122
	Amresco Residential Securities Mortgage Loan Trust Series 1998-2, Class M1F
		39,925		6.745			06/25/28		31,660
	Centex Home Equity Series 2004-D, Class MV3
		614,986		4.207			09/25/34		492,516
	Countrywide Asset-Backed Certificates Series 2006-20, Class 2A1
		172,212		3.257			04/25/47		163,386
	Morgan Stanley ABS Capital I Series 2004-HE4, Class M3
		77,877		4.707			05/25/34		18,709

									834,393


	Manufactured Housing – 0.1%
	CNH Equipment Trust Series 2006-A, Class A3
		261,910		5.200			08/16/10		262,172
	Lehman ABS Manufactured Housing Contract Series 2001-B, Class A3
		103,727		4.350			05/15/14		85,553

									347,725


	Student Loan^(b) – 0.1%
	GCO Slims Trust Series 2006-1A Class Note
		278,640		5.720			03/01/22		247,883


	TOTAL ASSET-BACKED SECURITIES
	(Cost $24,926,965)							$	24,438,831

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

GOLDMAN SACHS ENHANCED INCOME FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

	Student Loan^(b) – (continued)

Commercial Paper – 15.4%


	Amstel Funding Corp.
	$	8,000,000		2.760	%		10/15/08	$	7,990,822
	Citibank Credit Card Issuance Trust (Dakota Corp.)
		9,000,000		2.830			11/12/08		8,969,655
	Dexia Delaware LLC
		8,000,000		2.750			11/12/08		7,973,773
	Newport Funding Corp.
		8,000,000		2.640			10/17/08		7,990,045
	UBS Finance (Delaware)
		8,000,000		2.760			11/12/08		7,973,727


	TOTAL COMMERCIAL PAPER
	(Cost $40,898,022)							$	40,898,022




U.S. Treasury Obligations^(c) – 26.0%


	United States Treasury Bill^(d)
	$	17,000,000		0.000	%^(f)		07/30/09	$	16,755,132
		42,700,000		0.000			08/27/09		42,013,854
	United States Treasury Inflation Protected Securities
		10,325,777		3.875			01/15/09		10,297,546


	TOTAL U.S. TREASURY OBLIGATIONS
	(Cost $68,930,967)							$	69,066,532


	TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL – 98.4%
	(Cost $264,554,255)							$	261,683,793


			Interest
	Shares		Rate					Value

Securities Lending Collateral^(e) – 29.5%


	State Street Navigator Securities Lending Prime Portfolio
		78,494,988	2.830%					$	78,494,988
	(Cost $78,494,988)


	TOTAL INVESTMENTS – 127.9%
	(Cost $343,049,243)							$	340,178,781


	LIABILITIES IN EXCESS OF OTHER ASSETS – (27.9)%								(74,210,024	)


	NET ASSETS – 100.0%							$	265,968,757

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


(a)		Securities with “Call” features with resetting interest rates. Maturity dates disclosed are the final maturity dates.

(b)		Securities are exempt from registration under Rule 144A of the Securities Act of 1933. Under procedures approved by the Board of Trustees, such securities have been determined to be liquid by the investment adviser and may be resold, normally to qualified institutional buyers in transactions exempt from registration. Total market value of Rule 144A securities amounts to $9,700,113, which represents approximately 3.6% of net assets as of September 30, 2008.

(c)		All or a portion of security is on loan.

(d)		Security issued with a zero coupon. Income is recognized through the accretion of discount.

(e)		Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2008.

(f)		A portion of this security is segregated as collateral for initial margin requirement on futures transactions.




Investment Abbreviations:
FHLB	—	Federal Home Loan Bank
FHLMC	—	Federal Home Loan Mortgage Corp.
FNMA	—	Federal National Mortgage Association
LIBOR	—	London Interbank Offered Rate
MTN	—	Medium-Term Note

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

GOLDMAN SACHS ENHANCED INCOME FUND

ADDITIONAL INVESTMENT INFORMATION

FUTURES CONTRACTS — At September 30, 2008, the following futures contracts were open:


	Number of
	Contracts			Settlement	Notional			Unrealized
Type	Long (Short)			Month	Value			Gain (Loss)

Eurodollars		46		December 2008	$	11,102,675		$	(33,506	)
Eurodollars		(26	)	March 2009		(6,307,275	)		(5,915	)
Eurodollars		(57	)	June 2009		(13,816,800	)		(3,330	)
Eurodollars		(101	)	September 2009		(24,460,938	)		5,306
Eurodollars		(101	)	December 2009		(24,381,400	)		20,362
Eurodollars		(101	)	March 2010		(24,341,000	)		11,676
Eurodollars		(41	)	June 2010		(9,855,888	)		(28,802	)
Federal Funds		9		September 2008		3,682,513			19,046
Federal Funds		4		October 2008		1,637,881			1,775
Federal Funds		2		November 2008		819,274			1,955
2 Year U.S. Treasury Notes		264		December 2008		56,347,500			262,814
5 Year U.S. Treasury Notes		74		December 2008		8,305,344			(82,254	)


TOTAL								$	169,127

INTEREST RATE SWAP CONTRACTS — At September 30, 2008, the Fund had an outstanding swap contract with the following terms:

Rates Exchanged

Notional

Payments

Amount

Termination

received by

made by

Unrealized

Swap Counterparty

(000s)

Date

the Fund

Loss

Deutsche Bank Securities, Inc.

18,400

07/02/13

3 month LIBOR

4.283%

(227,285

)

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

GOLDMAN SACHS GOVERNMENT INCOME FUND

Schedule of Investments

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – 78.4%


	Collateralized Mortgage Obligations – 6.6%
	Adjustable Rate Non-Agency^(a) – 5.0%
	Adjustable Rate Mortgage Trust Series 2004-5, Class 2A1
	$	117,280		4.997	%		04/25/35	$	90,390
	American Home Mortgage Assets Series 2006-3, Class 1A1
		1,645,496		3.825			10/25/46		972,183
	Banc of America Funding Corp. Series 2007-D, Class 1A5
		2,300,000		3.468			06/20/47		813,834
	Bear Stearns Adjustable Rate Mortgage Trust Series 2003-05, Class 1A1
		37,396		5.774			08/25/33		26,697
	Bear Stearns Adjustable Rate Mortgage Trust Series 2005-03, Class 2A1
		522,068		5.077			06/25/35		403,480
	Chase Mortgage Finance Corp. Series 2007-A1, Class 3A1
		2,346,134		4.822			02/25/37		2,085,240
	Chase Mortgage Finance Corp. Series 2007-A1, Class 5A1
		811,000		4.168			02/25/37		721,170
	Chase Mortgage Finance Corp. Series 2007-A1, Class 7A1
		1,574,075		4.608			02/25/37		1,400,169
	Countrywide Alternative Loan Trust Series 2005-38, Class A1
		685,177		4.355			09/25/35		435,694
	Countrywide Home Loan Trust Series 2003-37, Class 1A1
		53,946		5.420			08/25/33		40,991
	Countrywide Home Loan Trust Series 2004-HYB6, Class A2
		184,326		4.543			11/20/34		129,956
	Countrywide Home Loan Trust Series 2005-HYB4, Class 2A1
		2,335,222		4.902			08/20/35		1,563,642
	Countrywide Home Loan Trust Series 2006-HYB1, Class 3A1
		2,418,581		5.267			03/20/36		1,547,426
	CS First Boston Mortgage Securities Corp. Series 2003-AR9, Class 2A2
		164,416		5.879			03/25/33		122,129
	First Horizon Mortgage Pass-Through Trust Series 2004-AR6, Class 2A1
		82,325		4.750			12/25/34		74,379
	Harborview Mortgage Loan Trust Series 2005-10, Class 2A1A
		875,857		3.340			11/19/35		564,019
	Harborview Mortgage Loan Trust Series 2005-14, Class 5A1A
		2,120,925		5.738			12/19/35		1,301,118
	Harborview Mortgage Loan Trust Series 2005-16, Class 2A1A
		788,060		3.270			01/19/36		502,390
	Indymac Index Mortgage Loan Trust Series 2005-AR13, Class 4A1
		476,574		5.356			08/25/35		318,463
	Indymac Index Mortgage Loan Trust Series 2005-AR15, Class A1
		1,927,765		5.423			09/25/35		1,270,310
	JPMorgan Mortgage Trust Series 2005-A4, Class 2A1
		611,594		5.061			07/25/35		563,597
	JPMorgan Mortgage Trust Series 2007-A1, Class 1A1
		1,702,602		4.200			07/25/35		1,586,448
	JPMorgan Mortgage Trust Series 2007-A1, Class 2A2
		1,506,894		4.746			07/25/35		1,360,614
	JPMorgan Mortgage Trust Series 2007-A1, Class 4A2
		810,636		4.069			07/25/35		751,492


	JPMorgan Mortgage Trust Series 2007-A1, Class 5A2
		1,541,539		4.766			07/25/35		1,369,980
	Lehman XS Trust Series 2007-04N, Class 3A2A
		3,550,221		3.605			03/25/47		2,065,362
	Luminent Mortgage Trust Series 2006-5, Class A1A
		1,310,667		3.397			07/25/36		792,459
	Master Adjustable Rate Mortgages Trust Series 2004-9, Class 2A1
		42,717		3.587			11/25/34		25,937
	MLCC Mortgage Investors, Inc. Series 2004-E, Class A2B
		1,422,263		3.825			11/25/29		1,252,904
	Residential Accredit Loans, Inc. Series 2005-Q05, Class A1
		2,793,747		3.855			01/25/46		1,684,159
	Residential Accredit Loans, Inc. Series 2005-QA10, Class A31
		7,556,507		5.600			09/25/35		4,919,276
	Residential Funding Mortgage Securities I Series 2005-SA4, Class 2A2
		2,219,438		5.180			09/25/35		1,890,343
	Sequoia Mortgage Trust Series 2004-09, Class A2
		841,266		3.745			10/20/34		734,334
	Structured Adjustable Rate Mortgage Loan Trust Series 2004-01, Class 3A3
		46,112		5.678			02/25/34		33,493
	Structured Adjustable Rate Mortgage Loan Trust Series 2004-05, Class 1A
		298,234		5.416			05/25/34		256,327
	Structured Adjustable Rate Mortgage Loan Trust Series 2004-05, Class 3A1
		237,032		4.380			05/25/34		166,792
	Structured Adjustable Rate Mortgage Loan Trust Series 2004-12, Class 3A2
		94,609		5.250			09/25/34		67,433
	Structured Adjustable Rate Mortgage Loan Trust Series 2004-16, Class 3A1
		427,557		5.450			11/25/34		321,723
	Structured Adjustable Rate Mortgage Loan Trust Series 2007-09, Class 1A1
		10,467,436		6.000			10/25/37		6,689,435
	Structured Asset Securities Corp. Series 2003-24A, Class 1A3
		714,709		5.005			07/25/33		633,803
	Structured Asset Securities Corp. Series 2003-34A, Class 3A3
		1,106,440		4.958			11/25/33		977,988
	Washington Mutual Mortgage Pass-Through Certificates Series 2004-AR3, Class A2
		304,696		4.243			06/25/34		275,138
	Wells Fargo Mortgage Backed Securities Trust Series 2005-AR6, Class A1
		5,584,651		5.034			04/25/35		4,880,881

									47,683,598


	Interest Only^(b) – 0.0%
	CS First Boston Mortgage Securities Corp. Series 2003-11, Class 1A2
		56,511		5.500			06/25/33		1,356

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

GOLDMAN SACHS GOVERNMENT INCOME FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – (continued)
	Interest Only^(b) – (continued)

	CS First Boston Mortgage Securities Corp. Series 2003-AR18, Class 2X^(a)
	$	137,137		0.000	%		07/25/33	$	—
	CS First Boston Mortgage Securities Corp. Series 2003-AR20, Class 2X^(a)
		167,224		0.000			08/25/33		—
	FNMA REMIC Series 2004-47, Class EI^(a)(c)
		2,866,529		0.000			06/25/34		83,334
	FNMA REMIC Series 2004-62, Class DI^(a)(c)
		1,302,298		0.000			07/25/33		39,484
	FNMA REMIC Series 2004-71, Class DI^(a)(c)
		2,290,726		0.000			04/25/34		78,865
	FNMA Series 151, Class 2
		19,788		9.500			07/25/22		4,977
	Master Adjustable Rate Mortgages Trust Series 2003-2, Class 3AX^(a)
		53,685		0.120			08/25/33		267
	Master Adjustable Rate Mortgages Trust Series 2003-2, Class 4AX^(a)
		22,625		0.320			07/25/33		208
	Washington Mutual Mortgage Pass-Through Certificates Series 2003-AR12, Class X^(a)
		3,848,867		0.481			02/25/34		1,540

									210,031


	Inverse Floaters^(a) – 0.1%
	GNMA Series 2001-48, Class SA
		71,016		18.401			10/16/31		77,307
	GNMA Series 2001-51, Class SA
		55,726		21.718			10/16/31		67,889
	GNMA Series 2001-51, Class SB
		69,931		18.401			10/16/31		76,491
	GNMA Series 2001-59, Class SA
		62,167		18.239			11/16/24		66,435
	GNMA Series 2002-13, Class SB
		237,363		25.955			02/16/32		305,171

									593,293


	Principal Only^(d) – 0.0%
	FNMA REMIC Trust Series G-35, Class N
		17,303		0.000			10/25/21		14,376


	Regular Floater^(a) – 0.1%
	BCAP LLC Trust Series 2006-RR1, Class CF
		1,390,567		3.847			11/25/36		960,794
	FHLMC REMIC Series 1760, Class ZB
		206,351		3.230			05/15/24		195,335

									1,156,129


	Sequential Fixed Rate – 1.4%
	FHLMC REMIC Series 2329, Class ZA
		3,830,283		6.500			06/15/31		3,961,815
	FHLMC REMIC Series 2590, Class NV
		2,000,000		5.000			03/15/18		1,979,730
	FNMA REMIC Series 2001-53, Class GH
		493,461		8.000			09/25/16		524,641


	GNMA 2002-42 Class KZ
		6,832,073		6.000			06/16/32		6,903,987

									13,370,173


	TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS							$	63,027,600


	Commercial Mortgage-Backed Securities – 3.4%
	Interest Only^(a)(b)(e) – 0.2%
	Bear Stearns Commercial Mortgage Securities, Inc. Series 2003-T10, Class X2
		16,299,399		1.320			03/13/40		407,366
	CS First Boston Mortgage Securities Corp. Series 2003-C3, Class ASP
		9,430,099		1.879			05/15/38		234,949
	JPMorgan Chase Commercial Mortgage Securities Corp. Series 2004-C1, Class X2
		18,087,782		1.145			01/15/38		330,507
	Prudential Commercial Mortgage Trust Series 2003-PWR1, Class X2
		19,024,516		1.615			02/11/36		529,013

									1,501,835


	Sequential Fixed Rate – 3.2%
	Banc of America Funding Corp. Series 2007-8, Class 2A1
		6,570,913		7.000			10/25/37		4,901,493
	Citigroup/Deutsche Bank Commercial Mortgage Trust Series 2005-CD1, Class A4
		10,000,000		5.399			07/15/44		8,903,645
	First Union National Bank Commercial Mortgage Trust Series 2000-C2, Class A1
		9,141,059		7.202			10/15/32		9,269,294
	GMAC Commercial Mortgage Securities, Inc. Series 2002-C1, Class A2
		8,000,000		6.278			11/15/39		7,993,676

									31,068,108


	TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES							$	32,569,943


	Federal Agencies – 68.4%
	Adjustable Rate FHLMC^(a) – 0.9%
		309,099		6.815			11/01/32		312,592
		4,398,983		3.480			09/01/33		4,387,909
		3,977,044		4.571			08/01/35		3,967,815

									8,668,316


	Adjustable Rate FNMA^(a) – 3.0%
		1,012,471		4.720			11/01/32		1,025,900
		1,174,885		4.819			12/01/32		1,187,808
		6,227,922		4.211			05/01/33		6,212,001
		93,410		4.387			06/01/33		93,029
		5,549,833		4.088			10/01/33		5,495,078
		4,876,370		4.429			02/01/35		4,867,619


		5,674,666		4.801			09/01/35		5,693,727
		4,429,071		5.240			06/01/37		4,448,816

									29,023,978

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

GOLDMAN SACHS GOVERNMENT INCOME FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – (continued)
	Adjustable Rate FNMA^(a) – (continued)

	Adjustable Rate GNMA^(a) – 0.9%
	$	185,873		5.375	%		06/20/23	$	188,439
		82,405		5.625			07/20/23		83,314
		84,092		5.625			08/20/23		85,019
		226,268		5.625			09/20/23		228,763
		63,882		5.375			03/20/24		64,391
		585,516		5.375			04/20/24		592,072
		68,957		5.375			05/20/24		69,876
		576,696		5.375			06/20/24		584,876
		312,755		5.625			07/20/24		316,732
		445,521		5.625			08/20/24		451,244
		141,289		5.625			09/20/24		143,017
		165,596		5.125			11/20/24		165,300
		141,458		5.125			12/20/24		142,143
		119,625		5.375			01/20/25		120,807
		56,707		5.375			02/20/25		57,076
		202,476		5.375			05/20/25		204,581
		142,885		5.625			07/20/25		143,217
		75,786		5.375			02/20/26		76,249
		3,938		5.625			07/20/26		3,945
		220,454		5.375			01/20/27		221,837
		71,450		5.375			02/20/27		71,883
		607,283		5.375			04/20/27		613,377
		69,645		5.375			05/20/27		70,492
		70,452		5.375			06/20/27		71,160
		22,918		5.125			11/20/27		22,853
		86,149		5.125			12/20/27		85,887
		186,361		5.375			01/20/28		187,455
		63,943		5.250			02/20/28		64,152
		71,662		5.375			03/20/28		72,091
		402,482		5.625			07/20/29		402,357
		150,426		5.625			08/20/29		150,450
		54,240		5.625			09/20/29		54,282
		186,753		5.125			10/20/29		186,006
		251,756		5.125			11/20/29		250,673
		60,162		5.125			12/20/29		59,922
		80,984		5.250			01/20/30		81,141
		40,100		5.250			02/20/30		40,177
		156,323		5.250			03/20/30		156,565
		255,334		5.375			04/20/30		257,518
		647,502		5.375			05/20/30		653,025
		64,255		5.375			06/20/30		64,789
		545,124		5.625			07/20/30		545,277
		81,061		5.625			09/20/30		81,075
		162,717		4.875			10/20/30		161,475
		329,562		5.000			03/20/32		328,558

									8,675,538


	FHLMC – 14.4%
		888,582		5.500			12/01/08		894,404
		20,515		7.000			06/01/09		20,941
		704,068		6.500			12/01/13		724,898


		29,609		4.000			02/01/14		28,486
		19,995		6.500			02/01/14		20,587
		488,793		4.000			03/01/14		470,256
		97,408		4.000			04/01/14		93,714
		3,070,906		7.500			11/01/14		3,247,746
		5,291		7.000			02/01/15		5,582
		1,383,664		5.500			07/01/15		1,407,430
		129,748		8.000			07/01/15		138,290
		16,069		7.000			01/01/16		16,970
		74,481		7.000			02/01/16		78,659
		43,558		7.000			09/01/17		45,987
		29,082		7.000			10/01/17		30,703
		505,790		4.500			05/01/18		498,173
		347,153		5.500			05/01/18		352,135
		117,482		4.500			06/01/18		115,713
		2,206,695		5.500			06/01/18		2,238,361
		460,696		4.500			09/01/18		453,760
		352,258		4.500			10/01/18		346,953
		41,084		10.000			10/01/18		46,500
		363,777		4.500			11/01/18		358,299
		8,983,919		4.500			12/01/18		8,848,611
		1,764,979		5.000			12/01/18		1,770,055
		131,551		4.500			01/01/19		129,569
		265,911		4.500			03/01/19		261,498
		6,463,721		4.500			06/01/19		6,366,369
		522,137		5.000			06/01/19		521,311
		5,172,955		5.000			11/01/19		5,171,938
		717,660		4.500			02/01/20		704,630
		69,320		10.000			07/01/20		75,640
		88,007		10.000			10/01/20		95,806
		290,040		6.500			07/01/21		297,717
		21,701		6.500			08/01/22		22,277
		167,992		9.000			10/01/22		186,945
		1,457,404		4.500			10/01/23		1,390,839
		11,794		7.500			03/01/27		12,815
		695,307		6.500			07/01/28		710,731
		4,556,915		6.500			12/01/29		4,720,054
		11,992		8.000			07/01/30		12,690
		49,276		7.500			12/01/30		52,191
		5,986		7.500			01/01/31		6,340
		277,359		7.000			04/01/31		293,045
		191,309		6.500			07/01/31		198,158
		1,620,051		6.000			05/01/33		1,644,838
		2,215,260		6.000			10/01/34		2,249,454
		4,204,360		4.500			10/01/35		3,970,592
		285,405		5.000			11/01/35		278,459
		4,676,170		5.500			11/01/35		4,658,648
		904,053		5.000			12/01/35		882,051
		2,792,176		5.000			03/01/36		2,724,222
		23,104,853		5.500			03/01/36		23,007,515
		2,368,089		5.000			04/01/36		2,310,457
		3,681,036		5.500			05/01/36		3,664,983
		4,007,665		5.000			06/01/36		3,910,916
		3,715,846		5.500			03/01/37		3,699,599
		1,000,000		5.500			11/01/37		995,483
		3,211,992		7.000			11/01/37		3,349,768


		29,536,424		5.500			02/01/38		29,407,277
		4,983,446		5.500			05/01/38		4,960,936

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

GOLDMAN SACHS GOVERNMENT INCOME FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – (continued)
	FHLMC – (continued)

	$	1,999,999		5.500	%		06/01/38	$	1,990,965

									137,189,939


	FNMA – 43.0%
		390,082		5.835			12/01/08		389,368
		12,433		5.500			01/01/09		12,554
		523		6.500			02/01/09		543
		419,668		5.500			05/01/09		425,747
		30,886		5.500			06/01/09		30,860
		322,538		4.500			03/01/13		322,080
		147,289		4.500			05/01/13		147,073
		199,495		4.000			06/01/13		197,297
		318,415		4.500			06/01/13		317,926
		271,665		4.000			07/01/13		269,679
		332,544		4.500			07/01/13		332,013
		378,345		4.000			08/01/13		374,069
		157,074		4.500			08/01/13		156,797
		563,856		4.000			09/01/13		557,310
		662,362		4.500			09/01/13		661,096
		1,153,971		4.000			10/01/13		1,140,197
		64,104		7.000			03/01/14		67,799
		575,833		4.000			04/01/14		567,582
		2,498,934		5.500			09/01/14		2,545,601
		90,669		7.000			03/01/15		95,645
		28,258		8.000			01/01/16		29,975
		406,024		8.000			11/01/16		442,800
		500,528		5.000			11/01/17		501,069
		17,563,508		5.000			12/01/17		17,610,476
		3,145,628		5.000			01/01/18		3,148,141
		983,251		5.000			02/01/18		983,975
		3,590,861		5.000			03/01/18		3,602,678
		1,294,761		5.000			04/01/18		1,293,285
		2,068,475		4.500			05/01/18		2,038,057
		494,793		5.000			05/01/18		494,699
		8,791,876		4.500			06/01/18		8,663,577
		1,944,754		5.000			06/01/18		1,951,305
		824,337		4.500			07/01/18		812,214
		121,988		5.000			07/01/18		122,390
		8,669,711		4.000			08/01/18		8,414,879
		147,192		4.500			08/01/18		145,027
		85,191		5.000			08/01/18		85,471
		748,563		4.500			09/01/18		737,608
		1,245,428		5.000			09/01/18		1,244,009
		1,063,919		4.500			10/01/18		1,048,273
		6,563,669		5.000			10/01/18		6,556,190
		206,618		4.500			11/01/18		203,579
		60,281		5.000			11/01/18		60,479
		7,481,832		4.500			12/01/18		7,371,805
		126,658		4.500			01/01/19		124,806
		174,797		4.500			03/01/19		172,241
		2,460,535		5.000			04/01/19		2,457,731
		1,357,206		4.500			05/01/19		1,333,006
		792,798		4.500			06/01/19		778,568
		2,588,697		5.000			06/01/19		2,585,747


		470,913		4.500			08/01/19		462,517
		414,379		6.500			08/01/19		429,340
		2,863,406		6.000			09/01/19		2,930,991
		1,082,767		4.500			04/01/20		1,066,933
		35,487		9.500			08/01/20		39,613
		75,960		9.500			10/01/20		84,790
		3,604,356		6.000			12/01/20		3,689,429
		2,989,726		5.500			02/01/23		2,994,198
		1,999,801		4.500			03/01/23		1,950,394
		895,985		5.000			06/01/23		890,533
		39,974		5.000			07/01/23		39,731
		1,999,999		4.500			08/01/23		1,950,587
		3,960,462		5.500			08/01/23		3,958,451
		30,524		6.500			10/01/28		31,615
		905,887		6.000			11/01/28		924,879
		36,207		6.500			11/01/28		37,476
		50,509		7.000			11/01/30		53,095
		416,372		7.000			07/01/31		435,790
		918,213		5.500			04/01/33		918,369
		423,468		5.500			06/01/33		423,540
		7,198,333		5.500			07/01/33		7,188,222
		4,675,305		4.500			09/01/33		4,433,448
		359,209		5.500			09/01/33		359,271
		355,462		5.500			10/01/33		355,523
		786,954		5.500			12/01/33		787,580
		7,949,943		5.500			01/01/34		7,951,298
		10,565		6.500			01/01/34		10,925
		4,336,347		5.500			11/01/34		4,333,021
		75,797		7.000			05/01/35		79,190
		7,613,229		5.000			06/01/35		7,430,324
		6,467,831		5.000			07/01/35		6,315,026
		168,278		7.000			07/01/35		175,811
		1,758,247		5.000			08/01/35		1,716,321
		195,174		7.000			08/01/35		203,911
		124,739		7.000			10/01/35		130,323
		18,906,217		5.000			01/01/36		18,452,002
		117,037		7.000			01/01/36		122,268
		941,375		6.000			06/01/36		954,582
		902,480		6.000			08/01/36		915,142
		1,817,457		6.500			09/01/36		1,865,673
		31,667		7.000			09/01/36		33,082
		1,740,143		5.500			10/01/36		1,736,905
		939,593		6.000			10/01/36		952,775
		1,803,376		6.500			10/01/36		1,851,218
		1,030,448		7.000			10/01/36		1,076,498
		958,175		6.000			11/01/36		971,618
		2,394,868		6.500			11/01/36		2,458,403
		49,915		6.000			12/01/36		50,615
		301,387		5.000			01/01/37		293,958
		995,541		6.000			01/01/37		1,009,508
		8,894,119		6.000			02/01/37		9,018,397
		50,903		6.000			03/01/37		51,614
		1,230,117		7.000			03/01/37		1,285,091
		52,312		6.000			04/01/37		53,062
		6,639,590		7.000			04/01/37		6,936,309
		514,611		5.000			05/01/37		501,926


		7,132,505		5.500			05/01/37		7,118,832

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

GOLDMAN SACHS GOVERNMENT INCOME FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date			Value

Mortgage-Backed Obligations – (continued)
	FNMA – (continued)

	$	1,408,929		5.500	%		06/01/37		$	1,406,228
		48,699		6.000			06/01/37			49,382
		1,698,638		5.500			07/01/37			1,695,382
		153,557		6.000			07/01/37			155,702
		3,283,844		7.000			07/01/37			3,434,918
		122,862		5.000			08/01/37			119,808
		938,621		6.000			08/01/37			951,736
		12,220,670		7.000			08/01/37			12,782,883
		812,541		7.500			08/01/37			859,889
		103,006		6.000			10/01/37			104,446
		2,499,936		6.500			10/01/37			2,566,257
		6,687,273		7.000			10/01/37			6,994,921
		20,431,083		7.500			10/01/37			21,450,141
		156,861		5.500			11/01/37			156,560
		51,497		6.000			11/01/37			52,217
		7,079,801		6.500			11/01/37			7,266,476
		4,735,117		7.000			11/01/37			4,952,957
		2,697,704		7.500			11/01/37			2,853,946
		993,324		5.000			12/01/37			968,628
		2,793,105		5.500			12/01/37			2,787,750
		906,667		6.000			12/01/37			919,336
		1,674,745		7.000			12/01/37			1,751,792
		8,650,815		5.500			01/01/38			8,633,566
		195,145		5.500			02/01/38			194,771
		146,882		6.000			02/01/38			148,925
		4,819,665		5.000			03/01/38			4,699,356
		1,198,011		5.500			03/01/38			1,195,595
		958,368		6.000			03/01/38			971,754
		1,633,493		5.000			04/01/38			1,592,718
		5,971,660		5.000			05/01/38			5,822,595
		964,348		5.500			05/01/38			962,403
		25,919,402		6.000			05/01/38			26,281,578
		13,514,463		5.000			06/01/38			13,177,113
		7,621,913		5.500			06/01/38			7,606,937	��
		11,000,000		4.500			TBA-15yr	^(f)		10,705,621
		16,000,000		5.500			TBA-15yr	^(f)		15,955,008
		20,000,000		6.000			TBA-15yr	^(f)		20,256,240
		12,000,000		6.500			TBA-15yr	^(f)		12,303,744

										410,906,518


	GNMA – 6.2%
		466		9.000			08/15/16			509
		299,623		7.000			12/15/27			316,246
		47,040		6.500			08/15/28			49,298
		546,402		6.000			01/15/29			557,011
		61,985		7.000			06/15/29			65,309
		294,154		7.000			10/15/29			312,685
		5,835,846		5.500			12/15/32			5,861,621
		10,951,442		5.000			05/15/33			10,768,006
		7,412,499		5.000			06/15/33			7,293,416
		23,230,973		5.000			07/15/33			22,890,485
		2,847,888		5.000			09/15/33			2,800,185


		5,068,699		5.000			03/15/34			4,981,422
		3,345,726		5.500			06/15/34			3,358,124

										59,254,317



	TOTAL FEDERAL AGENCIES								$	653,718,606



	TOTAL MORTGAGE-BACKED OBLIGATIONS
	(Cost $767,776,993)								$	749,316,149




Agency Debentures – 10.5%


	FFCB
	$	10,000,000		4.200	%		02/23/09		$	10,043,510
		11,000,000		4.450			06/11/09			11,094,248
		7,000,000		7.375			02/09/10			7,385,133
		9,000,000		4.750			11/06/12			9,266,373
		5,100,000		4.875	^(g)		12/16/15			5,228,078
		10,000,000		5.050			08/01/18			10,116,560
	FHLB
		3,900,000		3.500			02/13/09			3,905,885
		1,500,000		7.625			05/14/10			1,597,682
		10,000,000		5.375	^(h)		06/13/14			10,477,900
		8,800,000		5.375	^(g)		05/18/16			9,239,419
	FNMA
		5,000,000		6.625			09/15/09			5,150,384
		4,200,000		5.375	^(g)		06/12/17			4,403,578
	New Valley Generation
		3,873,049		4.929			01/15/21			3,859,981
	New Valley Generation II
		3,162,635		5.572			05/01/20			3,343,825
	Small Business Administration
		331,504		6.700			12/01/16			339,667
		254,590		7.150			03/01/17			262,557
		199,143		7.500			04/01/17			206,147
		107,236		7.300			05/01/17			110,785
		69,166		6.800			08/01/17			71,049
		248,536		6.300			05/01/18			253,726
		178,504		6.300			06/01/18			182,250
	Tennessee Valley Authority
		4,000,000		5.375			04/01/56			4,236,398



	TOTAL AGENCY DEBENTURES
	(Cost $99,026,781)								$	100,775,135




Asset-Backed Securities – 1.5%


	Home Equity – 1.5%
	Bear Stearns Adjustable Rate Mortgage Trust Series 2004-1, Class 21A1^(a)
	$	180,832		4.470	%		04/25/34		$	143,287
	CIT Mortgage Loan Trust Series 2007-1, Class 2A1^(a)(e)
		3,562,003		4.207			10/25/37			3,027,702
	CIT Mortgage Loan Trust Series 2007-1, Class 2A2^(a)(e)
		1,120,000		4.457			10/25/37			560,000

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

GOLDMAN SACHS GOVERNMENT INCOME FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Asset-Backed Securities – (continued)
	Home Equity – (continued)

	CIT Mortgage Loan Trust Series 2007-1, Class 2A3^(a)(e)
	$	2,200,000		4.657	%		10/25/37	$	825,000
	Citigroup Mortgage Loan Trust, Inc. Series 2004-OPT1, Class A2^(a)
		594,954		3.567			10/25/34		497,186
	Countrywide Home Equity Loan Trust Series 2004-I, Class A^(a)
		754,899		2.778			02/15/34		436,115
	Countrywide Home Equity Loan Trust Series 2005-B, Class 2A^(a)
		864,227		2.668			05/15/35		379,497
	GMAC Mortgage Corp. Loan Trust Series 2007-HE3, Class 1A1
		894,285		7.000			09/25/37		498,005
	GMAC Mortgage Corp. Loan Trust Series 2007-HE3, Class 2A1
		909,547		7.000			09/25/37		441,152
	Household Home Equity Loan Trust Series 2007-3, Class APT^(a)
		3,840,467	��	4.388			11/20/36		2,919,354
	Impac CMB Trust Series 2004-08, Class 1A^(a)
		420,794		3.927			10/25/34		114,286
	Securitized Asset Backed Receivables LLC Trust Series 2004-OP2, Class A2^(a)
		21,324		3.557			08/25/34		16,919
	Wells Fargo Mortgage Backed Securities Trust Series 2005-AR16, Class 1A1^(a)
		2,315,568		5.332			10/25/35		2,006,303
	Wells Fargo Mortgage Backed Securities Trust Series 2006-AR10, Class 5A3^(a)
		2,663,319		5.594			07/25/36		2,255,193

									14,119,999


	Manufactured Housing – 0.0%
	Mid-State Trust Series 4, Class A
		212,201		8.330			04/01/30		179,000



	TOTAL ASSET-BACKED SECURITIES
	(Cost $20,562,870)							$	14,298,999




U.S. Treasury Obligations – 4.5%


	United States Treasury Bond
	$	5,800,000		6.625	%		02/15/27	$	7,388,655
	United States Treasury Inflation Protected Securities^(g)
		13,185,914		2.000			01/15/26		12,039,359
		1,744,880		2.375			01/15/27		1,687,489
		2,204,538		1.750			01/15/28		1,923,288
		1,087,800		3.625			04/15/28		1,251,480


	United States Treasury Note^(g)
		14,100,000		8.125			08/15/19		18,923,737



	TOTAL U.S. TREASURY OBLIGATIONS
	(Cost $44,272,097)							$	43,214,008




Municipal Bonds – 0.8%


	New Jersey – 0.2%
	New Jersey Economic Development Authority Series A (MBIA)
	$	2,000,000		7.425	%		02/15/29	$	2,320,660


	New York – 0.6%
	Sales Tax Asset Receivable Taxable Series B (FSA)
		5,500,000		3.600			10/15/08		5,502,145



	TOTAL MUNICIPAL BONDS
	(Cost $7,500,000)							$	7,822,805



	TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENT AND SECURITIES LENDING COLLATERAL
	(Cost $939,138,741)							$	915,427,096




Repurchase Agreement⁽ⁱ⁾ – 9.6%


	Joint Repurchase Agreement Account II
	$	91,500,000		1.944	%		10/01/08	$	91,500,000

	Maturity Value: $91,504,941
	(Cost $91,500,000)


			Interest
	Shares		Rate	Value

Securities Lending Collateral^(a) – 5.3%


	State Street Navigator Securities Lending Prime Portfolio
		50,750,430	2.830%	$	50,750,430
	(Cost $50,750,430)


	TOTAL INVESTMENTS – 110.6%
	(Cost $1,081,389,171)			$	1,057,677,526


	LIABILITIES IN EXCESS OF OTHER ASSETS – (10.6)%				(101,271,980	)


	NET ASSETS – 100.0%			$	956,405,546

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

GOLDMAN SACHS GOVERNMENT INCOME FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)

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


(a)		Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2008.

(b)		Represents security with notional or nominal principal amount. The actual effective yield of this security is different than the stated interest rate.

(c)		Security is issued with zero coupon and interest rate is contingent upon LIBOR reaching a predetermined level.

(d)		Security issued with a zero coupon. Income is recognized through the accretion of discount.

(e)		Securities are exempt from registration under Rule 144A of the Securities Act of 1933. Under procedures approved by the Board of Trustees, such securities have been determined to be liquid by the investment adviser and may be resold, normally to qualified institutional buyers in transactions exempt from registration. Total market value of Rule 144A securities amounts to $ 1,501,835, which represents approximately 0.2% of net assets as of September 30, 2008.


(f)		TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement when the specific mortgage pools are assigned. Total market value of TBA securities (excluding forward sales contracts, if any) amounts to $59,220,613 which represents approximately 6.2% of net assets as of September 30, 2008.

(g)		All or a portion of security is on loan.

(h)		A portion of this security is segregated as collateral for initial margin requirement on futures transactions.

(i)		Joint repurchase agreement was entered into on September 30, 2008. Additional information appears on page 49.





Investment Abbreviations:
FFCB	—	Federal Farm Credit Bank
FHLB	—	Federal Home Loan Bank
FHLMC	—	Federal Home Loan Mortgage Corp.
FNMA	—	Federal National Mortgage Association
FSA	—	Insured by Financial Security Assurance Co.
GNMA	—	Government National Mortgage Association
LIBOR	—	London Interbank Offered Rate
MBIA	—	Insured by Municipal Bond Investors Assurance
REMIC	—	Real Estate Mortgage Investment Conduit

ADDITIONAL INVESTMENT INFORMATION

FORWARD SALES CONTRACT — At September 30, 2008, the Fund had the following forward sales contract:

Interest

Maturity

Settlement

Principal

Description

Rate

Date

Amount

Value

FNMA (Proceeds Receivable: $37,648,438)

7.000%

TBA-15yr^(f)

10/07/11

36,000,000

37,608,767

FUTURES CONTRACTS — At September 30, 2008, the following futures contracts were open:


	Number of
	Contracts			Settlement	Notional			Unrealized
Type	Long (Short)			Month	Value			Gain (Loss)

Eurodollars		(71	)	December 2008	$	(17,136,738	)	$	155,045
Eurodollars		(86	)	March 2009		(20,862,525	)		46,725
Eurodollars		(86	)	June 2009		(20,846,400	)		11,250
Eurodollars		(109	)	September 2009		(26,398,438	)		(30,352	)
Eurodollars		(109	)	December 2009		(26,312,600	)		(8,552	)
Federal Funds		4		November 2008		1,638,548			3,911
U.S. Treasury Bonds		518		December 2008		60,695,031			(128,074	)
2 Year U.S. Treasury Notes		359		December 2008		76,624,063			449,294
5 Year U.S. Treasury Notes		247		December 2008		27,721,891			(431,396	)
10 Year U.S. Treasury Notes		353		December 2008		40,462,625			(233,891	)


TOTAL								$	(166,040	)

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

GOLDMAN SACHS GOVERNMENT INCOME FUND


ADDITIONAL INVESTMENT INFORMATION (CONTINUED)

INTEREST RATE SWAP CONTRACTS — At September 30, 2008, the Fund had outstanding swap contracts with the following terms:


					Rates Exchanged
	Notional				Payments	Payments	Upfront Payments
	Amount			Termination	received by	made by	made (received)			Unrealized
Swap Counterparty	(000s)			Date	the Fund	the Fund	by the Fund			Gain (Loss)

Banc of America Securities LLC	$	35,000		09/02/10	4.309%	3 month LIBOR	$	—		$	661,931
		25,000		10/06/10	4.703	3 month LIBOR		—			1,001,288
		9,000		05/25/15	4.533	3 month LIBOR		—			263,721
		3,500	^(a)	12/17/18	4.750	3 month LIBOR		116,519			(52,605	)
		43,000		11/02/19	3 month LIBOR	4.865%		—			(1,951,491	)
		3,400	^(a)	12/17/28	3 month LIBOR	5.000		(178,887	)		49,682
		18,200	^(a)	12/17/28	5.000	3 month LIBOR		(235,044	)		926,674
		13,200		04/09/35	5.266	3 month LIBOR		—			1,386,874
Credit Suisse First Boston Corp.		8,500	^(a)	12/17/18	4.750	3 month LIBOR		169,864			(14,645	)
		23,000	^(a)	12/17/23	3 month LIBOR	4.750		282,503			(503,058	)
		8,100	^(a)	12/17/28	3 month LIBOR	5.000		(266,178	)		(41,635	)
		1,500	^(a)	12/17/38	5.000	3 month LIBOR		(13,532	)		82,897
Deutsche Bank Securities, Inc.		11,500	^(a)	12/17/13	3 month LIBOR	4.250		(151,601	)		69,634
		42,900	^(a)	12/17/13	4.250	3 month LIBOR		298,974			(106,564	)
		6,200	^(a)	12/17/18	4.750	3 month LIBOR		108,500			4,719
		6,000	^(a)	12/17/28	3 month LIBOR	5.000		(156,313	)		(71,696	)
JPMorgan Securities, Inc.		2,100	^(a)	12/17/13	3 month LIBOR	4.250		(30,310	)		15,342
		92,300	^(a)	12/17/15	4.500	3 month LIBOR		366,990			496,127
		44,300	^(a)	12/17/18	3 month LIBOR	4.750		(135,800	)		(673,165	)
		3,500	^(a)	12/17/18	4.750	3 month LIBOR		116,755			(52,842	)
		83,200	^(a)	12/17/23	3 month LIBOR	4.750		1,126,453			(1,924,286	)
		13,600	^(a)	12/17/23	4.750	3 month LIBOR		109,096			21,319
		3,300	^(a)	12/17/28	3 month LIBOR	5.000		(172,070	)		46,665
		2,900	^(a)	12/17/38	5.000	3 month LIBOR		(27,275	)		161,382


TOTAL			��				$	1,328,644		$	(203,732	)


^(a)	Represents forward starting interest rate swaps whose effective dates of commencement of accruals and cash flows occur subsequent to September 30, 2008.

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

GOLDMAN SACHS INFLATION PROTECTED SECURITIES FUND

Schedule of Investments

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

U.S. Treasury Obligations – 99.8%


	United States Treasury Inflation Protected Securities

	$	3,398,642		4.250	%		01/15/10	$	3,497,947
		9,603,436		3.500			01/15/11		9,986,824
		13,944,138		3.000	^(a)		07/15/12		14,513,882
		2,705,300		0.625	^(a)		04/15/13		2,553,127
		10,261,975		1.875	^(a)		07/15/13		10,231,507
		1,166,730		2.000	^(a)		07/15/14		1,163,813
		15,331,885		1.875	^(a)		07/15/15		15,093,520
		7,321,797		2.625	^(a)(b)		07/15/17		7,540,309
		2,549,675		1.375			07/15/18		2,355,063
		13,629,138		2.000	^(a)		01/15/26		12,444,044
		7,633,850		2.375	^(a)		01/15/27		7,382,765
		3,989,164		1.750	^(a)		01/15/28		3,480,235
		1,631,700		3.625	^(a)		04/15/28		1,877,220


	TOTAL U.S. TREASURY OBLIGATIONS
	(Cost $97,752,555)							$	92,120,256




Repurchase Agreement^(c) – 1.1%


	Joint Repurchase Agreement Account II
	$	1,000,000		1.944	%		10/01/08	$	1,000,000
	Maturity Value: $1,000,054

	(Cost $1,000,000)


			Interest
	Shares		Rate					Value

Securities Lending Collateral^(d) – 31.2%


	State Street Navigator Securities Lending Prime Portfolio
		28,841,528	2.830%					$	28,841,528
	(Cost $28,841,528)


	TOTAL INVESTMENTS – 132.1%
	(Cost $127,594,083)							$	121,961,784


	LIABILITIES IN EXCESS OF OTHER ASSETS – (32.1)%								(29,665,739	)


	NET ASSETS – 100.0%							$	92,296,045

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 of security is on loan.

(b)		A portion of this security is segregated as collateral for initial margin requirement on futures contracts.

(c)		Joint repurchase agreement was entered into on September 30, 2008. Additional information appears on page 49.

(d)		Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2008.

ADDITIONAL INVESTMENT INFORMATION

FUTURES CONTRACTS — At September 30, 2008, the following futures contracts were open:


	Number of
	Contracts			Settlement	Notional			Unrealized
Type	Long (Short)			Month	Value			Gain (Loss)

U.S. Treasury Bonds		4		December 2008	$	468,688		$	446
2 Year U.S. Treasury Notes		(7	)	December 2008		(1,494,063	)		(9,309	)
5 Year U.S. Treasury Notes		3		December 2008		336,703			(5,860	)
10 Year U.S. Treasury Notes		11		December 2008		1,260,875			(7,517	)


TOTAL								$	(22,240	)

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

GOLDMAN SACHS INFLATION PROTECTED SECURITIES FUND

ADDITIONAL INVESTMENT INFORMATION (CONTINUED)

INTEREST RATE SWAP CONTRACTS — At September 30, 2008, the Fund had outstanding swap contracts with the following terms^(a):


					Rates Exchanged
	Notional				Payments	Payments	Upfront Payments
	Amount		Termination		received by	made by	made (received)			Unrealized
Swap Counterparty	(000s)		Date		the Fund	the Fund	by the Fund			Gain (Loss)

Banc of America Securities LLC	$	200		12/17/18	3 month LIBOR	4.750%	$	2,589		$	(6,241	)
		200		12/17/18	4.750%	3 month LIBOR		6,658			(3,006	)
		200		12/17/28	3 month LIBOR	5.000		(10,523	)		2,922
		200		12/17/28	5.000	3 month LIBOR		(3,378	)		10,978
Credit Suisse First Boston Corp.		500		12/17/18	4.750	3 month LIBOR		10,095			(965	)
		500		12/17/28	3 month LIBOR	5.000		(16,586	)		(2,415	)
Deutsche Bank Securities, Inc.		100		12/17/13	4.250	3 month LIBOR		697			(248	)
		400		12/17/18	4.750	3 month LIBOR		7,000			305
		400		12/17/28	3 month LIBOR	5.000		(10,421	)		(4,780	)
JPMorgan Securities, Inc.		200		12/17/18	4.750	3 month LIBOR		6,672			(3,020	)
		200		12/17/28	3 month LIBOR	5.000		(10,428	)		2,828


TOTAL							$	(17,625	)	$	(3,642	)


^(a)	Represents forward starting interest rate swaps whose effective dates of commencement of accruals and cash flows occur subsequent to September 30, 2008.




Investment Abbreviation:
LIBOR	—	London Interbank Offered Rate

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND

Schedule of Investments

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – 66.9%


	Collateralized Mortgage Obligations – 1.4%
	Interest Only^(a) – 0.0%
	FHLMC REMIC Series 2575, Class IB
	$	1,461,871		5.500	%		08/15/30	$	111,029
	FHLMC REMIC Series 2586, Class NX
		1,006,748		4.500			08/15/16		76,742

									187,771


	Inverse Floaters^(b) – 0.0%
	FNMA REMIC Trust Series 1990-134, Class SC
		41,280		16.538			11/25/20		45,904
	GNMA Series 2001-59, Class SA
		17,478		18.239			11/16/24		18,678

									64,582


	IOette^(a) – 0.0%
	FHLMC Series 1161, Class U
		1,068		1,172.807			11/15/21		29,269


	Planned Amortization Class – 0.2%
	FHLMC Series 1556, Class H
		858,447		6.500			08/15/13		882,727
	FHLMC Series 1601, Class PL
		9,834		6.000			10/15/08		9,825
	FHLMC Series 1606, Class H
		10,393		6.000			11/15/08		10,384
	FHLMC Series 1916, Class PC
		1,590,567		6.750			12/15/11		1,640,019
	FNMA Series 1993-207, Class G
		172,533		6.150			04/25/23		172,748

									2,715,703


	Regular Floater^(b) – 0.5%
	FHLMC Series 3151, Class KY^(c)
		2,165,867		0.000			05/15/36		2,183,972
	FHLMC Series 3171, Class FL^(c)
		895,258		0.000			01/15/36		769,737
	FNMA Series 1988-12, Class B
		169,002		0.949			02/25/18		149,827
	FNMA Series 2001-60, Class OF
		2,308,731		4.157			10/25/31		2,311,130
	FNMA Series 2001-70, Class OF
		1,154,365		4.157			10/25/31		1,150,804

									6,565,470


	Sequential Fixed Rate – 0.6%
	FHLMC Series 108, Class G
		418,641		8.500			12/15/20		438,192
	FHLMC Series 1655, Class K
		215,251		6.500			01/15/09		215,045
	FHLMC Series 1980, Class Z
		1,952,419		7.000			07/15/27		2,028,703
	FHLMC Series 2019, Class Z
		1,945,184		6.500			12/15/27		2,010,081
	FNMA REMIC Trust Series 1989-66, Class J
		713,708		7.000			09/25/19		747,554
	FNMA REMIC Trust Series 1990-16, Class E
		396,884		9.000			03/25/20		436,681


	FNMA REMIC Trust Series 1992-33, Class K
		1,653,094		8.500			03/25/18		1,701,666
	FNMA REMIC Trust Series 1994-18, Class D
		334,752		6.750			02/25/24		334,836
	FNMA Series 1988-12, Class A
		214,069		10.000			02/25/18		235,235
	GNMA REMIC Trust Series 1995-3, Class DQ
		87,931		8.050			06/16/25		95,034

									8,243,027


	Targeted Amortization Class^(b)(c) – 0.1%
	FHLMC REMIC Trust Series 3291, Class XC
		828,930		0.000			03/15/37		828,219


	TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS							$	18,634,041


	Federal Agencies – 65.5%
	Adjustable Rate FHLMC^(b) – 4.7%
		213,323		5.765			05/01/18		215,834
		137,962		5.792			10/01/25		141,278
		1,170,484		3.539			09/01/33		1,167,329
		191,514		3.766			09/01/33		192,510
		4,395,751		6.082			09/01/34		4,410,066
		483,170		4.465			10/01/34		480,415
		333,765		4.359			11/01/34		334,551
		923,991		4.382			11/01/34		915,603
		291,098		4.392			11/01/34		293,792
		456,487		4.476			11/01/34		460,915
		2,345,382		5.299			11/01/34		2,354,726
		570,690		4.358			01/01/35		569,929
		672,032		4.334			02/01/35		669,900
		461,903		4.351			02/01/35		460,471
		1,044,307		4.420			02/01/35		1,035,987
		585,473		4.431			02/01/35		579,572
		575,894		4.436			02/01/35		576,918
		280,420		4.452			02/01/35		280,197
		687,204		4.499			02/01/35		686,871
		2,749,639		5.918			03/01/35		2,744,681
		1,738,295		5.791			04/01/35		1,735,387
		11,346,677		4.437			06/01/35		11,300,070
		4,322,056		4.962			08/01/35		4,344,920
		2,969,284		4.560			11/01/35		2,958,671
		2,046,935		5.880			05/01/36		2,086,168
		862,862		5.965			10/01/36		888,249
		784,886		5.892			11/01/36		803,835
		19,477,882		6.477			09/01/37		20,142,029

									62,830,874


	Adjustable Rate FNMA^(b) – 14.2%
		234,950		5.922			11/01/17		238,106
		367,903		5.933			02/01/18		376,750
		180,844		6.133			06/01/18		188,894
		258,020		6.367			05/01/20		264,478
		112,891		5.533			01/01/23		116,201
		802,327		5.732			02/01/27		808,720
		8,788,272		4.582			08/01/29		8,847,562

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – (continued)
	Adjustable Rate FNMA^(b) – (continued)

	$	209,524		5.483	%		07/01/32	$	210,384
		232,368		5.788			07/01/32		233,354
		832,873		5.230			01/01/33		841,354
		39,139		4.607			03/01/33		39,194
		6,136,262		4.485			05/01/33		6,177,387
		470,608		4.664			06/01/33		473,619
		329,457		4.591			07/01/33		327,735
		4,510,748		4.614			08/01/33		4,609,762
		986,865		5.324			08/01/33		1,012,873
		34,291		4.083			09/01/33		34,811
		43,626		3.987			12/01/33		44,490
		4,280,615		4.410			02/01/34		4,264,706
		2,777,130		4.215			03/01/34		2,802,966
		133,232		4.379			04/01/34		133,220
		1,514,055		4.195			05/01/34		1,523,395
		2,297,817		4.668			05/01/34		2,296,491
		2,544,335		4.248			06/01/34		2,559,674
		4,502,668		4.733			10/01/34		4,552,778
		175,737		4.761			10/01/34		177,521
		1,980,662		6.618			10/01/34		1,974,238
		1,282,624		4.557			11/01/34		1,295,611
		68,208		4.639			11/01/34		68,810
		1,326,467		5.150			11/01/34		1,323,758
		616,437		4.526			12/01/34		621,409
		1,109,714		6.437			12/01/34		1,117,322
		228,257		4.329			01/01/35		229,643
		757,106		4.451			01/01/35		758,100
		730,669		4.481			01/01/35		735,916
		816,320		4.518			01/01/35		822,198
		430,725		4.293			02/01/35		433,065
		1,819,996		4.429			02/01/35		1,816,730
		1,905,876		5.887			02/01/35		1,902,725
		616,855		5.948			02/01/35		617,063
		685,427		4.410			03/01/35		687,996
		5,267,950		5.022			03/01/35		5,308,013
		949,929		5.400			03/01/35		965,808
		6,028,504		4.370			04/01/35		6,027,619
		5,239,904		4.664			04/01/35		5,258,087
		1,037,530		4.673			04/01/35		1,042,627
		1,658,154		5.683			04/01/35		1,674,295
		981,809		4.373			05/01/35		987,665
		1,054,291		4.431			05/01/35		1,049,023
		2,369,399		5.160			05/01/35		2,387,165
		6,668,191		4.736			08/01/35		6,674,799
		4,920,637		4.707			10/01/35		4,952,656
		4,405,939		5.452			04/01/36		4,495,282
		1,100,795		5.617			04/01/36		1,117,142
		8,043,714		5.434			06/01/36		8,205,610
		12,154,355		5.923			06/01/36		12,374,446
		10,661,520		5.537			07/01/36		10,869,451
		546,870		6.118			07/01/36		567,207
		13,207,900		5.948			09/01/36		13,435,724
		846,307		5.539			11/01/36		854,890
		882,244		5.658			11/01/36		895,549
		17,931,600		5.898			07/01/37		18,198,620


		25,479,698		6.821			09/01/37		25,925,262
		850,094		5.700			12/01/46		862,398

									191,690,347


	Adjustable Rate GNMA^(b) – 1.8%
		4,949,999		3.750			05/20/34		4,812,419
		988,528		4.500			05/20/34		981,027
		2,183,345		5.500			07/20/34		2,178,262
		1,537,023		5.625			08/20/34		1,537,198
		6,719,946		5.500			09/20/34		6,709,215
		3,494,978		5.625			09/20/34		3,494,667
		1,433,026		4.750			10/20/34		1,420,495
		2,838,287		4.750			12/20/34		2,808,933

									23,942,216


	FHLMC – 29.6%
		1,505		7.000			01/01/09		1,537
		607		7.000			02/01/09		619
		1,659		7.000			03/01/09		1,674
		3,793		7.000			04/01/09		3,872
		5,944		7.000			05/01/09		6,068
		13,540		6.500			06/01/10		14,028
		186,129		6.500			07/01/10		192,823
		18,096		7.000			07/01/10		18,472
		351		6.500			08/01/10		363
		14,966		7.000			01/01/11		15,099
		14,943		7.000			12/01/12		15,501
		92,234		6.500			01/01/13		94,963
		77,524		6.500			04/01/13		79,818
		144,623		6.500			05/01/13		148,902
		82,981		6.500			06/01/13		85,437
		763,595		4.000			09/01/13		755,645
		50,164		6.500			10/01/13		51,648
		800,348		4.000			11/01/13		791,780
		920,765		5.000			12/01/13		928,757
		1,022,992		4.000			01/01/14		1,010,937
		919,499		4.000			05/01/14		907,490
		453,678		4.500			06/01/14		452,743
		1,804,105		4.500			10/01/14		1,798,923
		4,558,086		5.000			10/01/14		4,596,678
		1,053,419		4.000			11/01/14		1,036,940
		1,894,924		4.500			11/01/14		1,890,641
		1,398,612		4.000			03/01/15		1,376,119
		9,830,400		4.500			03/01/15		9,800,100
		719,967		4.500			08/01/15		710,617
		71,742		8.500			10/01/15		76,821
		685,052		8.000			12/01/15		721,623
		28,176		7.000			03/01/16		29,757
		189,240		4.500			04/01/18		186,221
		282,295		4.500			11/01/18		277,790
		411,844		4.500			05/01/19		403,986
		951,622		4.500			04/01/20		936,438
		640,333		4.500			08/01/20		630,116
		1,443,705		7.000			04/01/22		1,517,992
		36,275		7.500			01/01/31		38,421
		9,339,841		7.500			12/01/36		9,832,128

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date			Value

Mortgage-Backed Obligations – (continued)
	FHLMC – (continued)

	$	16,528,765		7.000	%		11/01/37		$	17,107,275
		350,000,000		5.000			09/01/38			341,153,883

										399,700,645


	FNMA – 15.1%
		161		5.500			01/01/09			161
		586		7.000			12/01/09			602
		5,347,686		4.000			05/01/10			5,331,063
		17,560		8.500			05/01/10			18,219
		5,758,898		4.000			06/01/10			5,741,024
		447		7.000			08/01/10			463
		458		7.000			01/01/11			462
		1,421		5.500			04/01/11			1,448
		396		5.500			07/01/11			397
		16,291		7.000			07/01/11			16,998
		2,987,249		5.500			01/01/13			3,051,876
		571		5.500			04/01/13			582
		3,487		5.500			06/01/13			3,552
		1,744,777		4.500			08/01/13			1,741,710
		9,389,947		4.500			09/01/13			9,376,373
		5,154,051		4.000			11/01/13			5,090,771
		3,769		5.500			12/01/13			3,839
		46,020		6.000			01/01/14			47,198
		139,514		6.000			03/01/14			143,083
		21,543		5.500			04/01/14			21,991
		926,051		4.000			01/01/15			910,053
		453,518		4.500			01/01/15			451,151
		3,875		8.500			09/01/15			4,141
		218,269		8.500			10/01/15			232,791
		31,537		8.500			12/01/15			35,272
		5,770		5.500			04/01/16			5,879
		45,998		5.500			07/01/16			46,868
		8,480		5.500			11/01/16			8,640
		1,122,045		5.500			01/01/17			1,143,269
		26,155		5.500			02/01/17			26,650
		13,201		5.500			04/01/17			13,439
		69,462		5.500			10/01/17			70,710
		8,648		5.500			11/01/17			8,804
		53,452		5.500			01/01/18			54,412
		105,913		5.500			02/01/18			107,758
		341,955		5.500			03/01/18			348,103
		42,715		5.500			04/01/18			43,436
		52,588		5.500			06/01/18			53,435
		835,913		5.500			07/01/18			845,070
		339,930		5.500			08/01/18			343,654
		705,156		5.500			09/01/18			712,881
		28,148		5.500			10/01/18			28,601
		1,848,466		5.500			12/01/18			1,882,681
		3,754,544		5.500			01/01/19			3,825,418
		79,831		5.500			03/01/19			80,917
		1,932,610		5.500			05/01/19			1,969,149
		37,756		5.500			08/01/19			38,470
		133,294		7.000			11/01/19			140,343
		28,598		5.500			03/01/20			29,112
		686,654		5.500			06/01/20			698,998
		17,270,104		6.000			10/01/21			17,672,332


		19,637		7.000			12/01/24			20,749
		5,173		7.000			07/01/27			5,465
		5,393		7.000			08/01/27			5,695
		8,159		7.000			10/01/28			8,620
		6,083		7.000			01/01/29			6,401
		8,228		7.000			11/01/29			8,652
		142,463		8.000			02/01/31			152,023
		6,828		7.000			04/01/31			7,213
		38,563		7.000			05/01/32			40,526
		22,935		7.000			06/01/32			24,102
		8,828		7.000			08/01/32			9,277
		3,247,418		6.000			03/01/33			3,299,585
		5,826,935		6.500			04/01/33			6,007,891
		9,164		7.000			10/01/33			9,622
		7,963		7.000			04/01/34			8,370
		170,416		7.000			08/01/36			178,178
		873,539		6.500			09/01/36			896,714
		31,667		7.000			09/01/36			33,082
		1,525,400		6.500			11/01/36			1,565,867
		4,622,036		7.000			11/01/36			4,827,571
		601,060		6.500			03/01/37			617,006
		482,024		7.000			03/01/37			503,566
		22,587,088		7.000			04/01/37			23,596,492
		956,040		5.000			06/01/37			932,271
		5,067,707		7.000			07/01/37			5,300,848
		1,531,126		8.000			07/01/37			1,635,604
		286,715		7.000			08/01/37			299,905
		1,280,090		8.000			08/01/37			1,367,438
		318,405		6.500			09/01/37			326,838
		6,365,646		7.000			09/01/37			6,657,375
		1,888,324		8.500			09/01/37			1,966,291
		897,418		6.500			10/01/37			921,224
		436,941		7.000			10/01/37			456,433
		5,412,592		7.500			10/01/37			5,734,158
		13,969,331		8.000			10/01/37			14,566,302
		16,364,948		7.500			11/01/37			17,302,737
		397,945		6.500			12/01/37			408,480
		833,609		7.000			03/01/38			871,966
		1,923,939		6.000			05/01/38			1,950,822
		41,217		6.500			06/01/38			42,309
		44,132		6.500			09/01/38			45,296
		1,235,507		7.500			09/01/47			1,307,920
		37,500,000		6.500			TBA-15yr	^(d)		37,975,296

										204,326,429


	GNMA – 0.1%
		375		9.000			12/15/08			380
		599		6.500			01/15/09			613
		1,921		9.000			01/15/09			1,983
		25		6.500			03/15/09			25
		589		6.500			04/15/09			603
		6,965		6.500			05/15/09			7,129
		1,502		6.500			07/15/09			1,537
		2,026		6.500			11/15/09			2,073
		911		9.000			01/15/10			967

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – (continued)
	GNMA – (continued)

	$	17,039		9.000	%		07/15/12	$	18,484
		1,557,695		5.500			07/15/20		1,596,528

									1,630,322


	TOTAL FEDERAL AGENCIES							$	884,120,833


	TOTAL MORTGAGE-BACKED OBLIGATIONS
	(Cost $906,062,038)							$	902,754,874




Agency Debentures – 16.0%


	FHLB
	$	20,000,000		3.000	%		06/11/10	$	19,915,380
		22,300,000		3.500			12/10/10		22,328,098
	FNMA
		61,200,000		0.000	^(e)(h)		02/23/09		60,472,822
		60,900,000		0.000	^(e)(h)		02/24/09		60,171,392
		13,933,000		5.500			07/09/10		14,029,806
		36,700,000		4.680	^(f)		06/15/11		37,906,990
	Small Business Administration
		213,530		7.200			06/01/17		220,399
		497,072		6.300			05/01/18		507,451
		446,260		6.300			06/01/18		455,624


	TOTAL AGENCY DEBENTURES
	(Cost $216,017,074)							$	216,007,962




U.S. Treasury Obligations^(e) – 7.7%


	United States Treasury Bond
	$	39,800,000		8.125	%		08/15/19	$	53,415,938
	United States Treasury Inflation Protected Securities
		38,300,081		4.250			01/15/10		39,419,171
	United States Treasury Note
		11,200,000		3.250			12/31/09		11,385,495


	TOTAL U.S. TREASURY OBLIGATIONS
	(Cost $104,005,362)							$	104,220,604


	TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENT AND SECURITIES LENDING COLLATERAL – 90.6%
	(Cost $1,226,084,474)							$	1,222,983,440




Repurchase Agreement^(g) – 14.2%


	Joint Repurchase Agreement Account II
	$	191,500,000		1.944	%		10/01/08	$	191,500,000
	Maturity Value: $191,510,341
	(Cost $191,500,000)


			Interest
	Shares		Rate	Value

Securities Lending Collateral^(b) – 14.2%


	State Street Navigator Securities Lending Prime Portfolio
		191,298,349	2.830%	$	191,298,349
	(Cost $191,298,349)


	TOTAL INVESTMENTS – 119.0%
	(Cost $1,608,882,823)			$	1,605,781,789


	LIABILITIES IN EXCESS OF OTHER ASSETS – (19.0)%				(256,422,486	)


	NET ASSETS – 100.0%			$	1,349,359,303

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


(a)		Represents security with notional or nominal principal amount. The actual effective yield of this security is different than the stated interest rate.

(b)		Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2008.

(c)		Security is issued with zero coupon and interest rate is contingent upon LIBOR reaching a predetermined level.

(d)		TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement when the specific mortgage pools are assigned. Total market value of TBA securities (excluding forward sales contracts, if any) amounts to $37,975,296 which represents approximately 2.8% of net assets as of September 30, 2008.

(e)		All or a portion of security is on loan.

(f)		A portion of this security is segregated as collateral for initial margin requirement on futures transactions.

(g)		Joint repurchase agreement was entered into on September 30, 2008. Additional information appears on page 49.

(h)		Security is issued with zero coupon. Income is recognized through the accretion of discount.




Investment Abbreviations:
FHLB	—	Federal Home Loan Bank
FHLMC	—	Federal Home Loan Mortgage Corp.
FNMA	—	Federal National Mortgage Association
GNMA	—	Government National Mortgage Association
LIBOR	—	London Interbank Offered Rate
REMIC	—	Real Estate Mortgage Investment Conduit

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)

ADDITIONAL INVESTMENT INFORMATION

FORWARD SALES CONTRACTS — At September 30, 2008, the Fund had the following forward sales contracts:

Interest

Maturity

Settlement

Principal

Description

Rate

Date

Amount

Value

FHLMC

5.000

TBA-15yr^(d)

10/14/08

350,000,000

340,921,714

FNMA

7.000

TBA-15yr^(d)

10/14/08

40,000,000

41,787,518

TOTAL (Proceeds Receivable: $387,892,187)

382,709,232

FUTURES CONTRACTS — At September 30, 2008, the following futures contracts were open:


	Number of
	Contracts			Settlement	Notional			Unrealized
Type	Long (Short)			Month	Value			Gain

Federal Funds		64		October 2008	$	26,206,096		$	22,553
Federal Funds		64		November 2008		26,216,764			18,553
Federal Funds		64		December 2008		26,223,431			21,112
U.S. Treasury Bonds		(6	)	December 2008		(703,031	)		2,513
2 Year U.S. Treasury Notes		5,161		December 2008		1,101,550,938			5,645,623
5 Year U.S. Treasury Notes		(451	)	December 2008		(50,617,703	)		166,965
10 Year U.S. Treasury Notes		(28	)	December 2008		(3,209,500	)		66,449


TOTAL								$	5,943,768

INTEREST RATE SWAP CONTRACTS — At September 30, 2008, the Fund had outstanding swap contracts with the following terms^(a):


					Rates Exchanged
	Notional				Payments	Payments	Upfront Payments
	Amount		Termination		received by	made by	made (received)			Unrealized
Swap Counterparty	(000s)		Date		the Fund	the Fund	by the Fund			Gain (Loss)

Banc of America Securities LLC	$	7,900		12/17/18	3 month LIBOR	4.750%	$	102,266		$	(246,528	)
		3,000		12/17/18	4.750%	3 month LIBOR		99,873			(45,090	)
		2,900		12/17/28	3 month LIBOR	5.000		(152,580	)		42,376
		2,300		12/17/28	5.000	3 month LIBOR		(38,842	)		126,245
Credit Suisse First Boston Corp.		23,200		12/17/18	3 month LIBOR	4.750		(83,150	)		(340,507	)
		7,400		12/17/18	4.750	3 month LIBOR		147,794			(12,662	)
		7,900		12/17/23	3 month LIBOR	4.750		97,034			(172,789	)
		7,000		12/17/28	3 month LIBOR	5.000		(229,874	)		(36,137	)
Deutsche Bank Securities, Inc.		5,400		12/17/18	4.750	3 month LIBOR		94,500			4,110
		5,200		12/17/28	3 month LIBOR	5.000		(135,472	)		(62,137	)
JPMorgan Securities, Inc.		71,000		12/17/13	3 month LIBOR	4.250		142,872			(461,312	)
		59,300		12/17/15	4.500	3 month LIBOR		235,780			318,747
		11,500		12/17/18	3 month LIBOR	4.750		(179,938	)		(30,064	)
		3,000		12/17/18	4.750	3 month LIBOR		100,076			(45,293	)
		37,500		12/17/23	3 month LIBOR	4.750		469,657			(829,257	)
		2,800		12/17/28	3 month LIBOR	5.000		(145,999	)		39,594


TOTAL							$	523,997		$	(1,750,704	)


^(a)	Represents forward starting interest rate swaps whose effective dates of commencement of cash flows and associated accruals occur subsequent to September 30, 2008.

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND

Schedule of Investments

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – 65.7%


	Collateralized Mortgage Obligations – 9.3%
	Adjustable Rate Non-Agency^(a) – 6.0%
	American Home Mortgage Assets Series 2006-3, Class 1A1
$	$	4,113,741		3.825	%		10/25/46	$	2,430,457
	American Home Mortgage Assets Series 2006-3, Class 2A11
		4,132,526		3.795			10/25/46		2,446,186
	Banc of America Funding Corp. Series 2007-D, Class 1A5
		1,200,000		3.468			06/20/47		424,609
	Bank of America Mortgage Securities Series 2002-J, Class A2
		92,022		7.054			09/25/32		89,503
	Bear Stearns Adjustable Rate Mortgage Trust Series 2003-05, Class 1A1
		74,792		5.774			08/25/33		53,394
	Chase Mortgage Finance Corp. Series 2007-A1, Class 5A1
		811,000		4.168			02/25/37		721,170
	Countrywide Alternative Loan Trust Series 2005-38, Class A1
		342,589		4.355			09/25/35		217,847
	Countrywide Home Loan Trust Series 2003-37, Class 1A1
		53,946		5.420			08/25/33		40,991
	CS First Boston Mortgage Securities Corp. Series 2003-AR9, Class 2A2
		942,649		5.879			03/25/33		700,206
	Harborview Mortgage Loan Trust Series 2006-6, Class 3A1A
		2,923,503		5.979			08/19/36		1,819,648
	Indy Mac Index Mortgage Loan Trust Series 2004-AR4, Class 1A
		410,623		5.765			08/25/34		270,999
	JPMorgan Mortgage Trust Series 2007-A1, Class 1A1
		851,301		4.200			07/25/35		793,224
	JPMorgan Mortgage Trust Series 2007-A1, Class 2A2
		753,447		4.746			07/25/35		680,307
	JPMorgan Mortgage Trust Series 2007-A1, Class 4A2
		810,636		4.069			07/25/35		751,492
	JPMorgan Mortgage Trust Series 2007-A1, Class 5A2
		770,769		4.766			07/25/35		684,990
	Luminent Mortgage Trust Series 2006-5, Class A1A
		655,333		3.397			07/25/36		396,229
	Residential Accredit Loans, Inc. Series 2005-Q05, Class A1
		1,676,249		3.855			01/25/46		1,010,495
	Sequoia Mortgage Trust Series 2004-10, Class A3A
		1,636,385		3.212			11/20/34		1,377,743
	Structured Adjustable Rate Mortgage Loan Trust Series 2007-10, Class 1A1
		4,311,219		6.000			11/25/37		2,756,885
	Structured Asset Mortgage Investments, Inc. Series 2007-AR3, Class 2A1
		4,589,466		3.397			09/25/47		2,590,111
	Washington Mutual Mortgage Pass-Through Certificates Series 2006-AR5, Class 4A
		2,861,301		3.845			07/25/46		1,554,385
	Wells Fargo Mortgage Backed Securities Trust Series 2005-AR16, Class 1A1
		2,605,014		5.332			10/25/35		2,257,090

									24,067,961


	Interest Only^(b) – 0.0%
	FHLMC REMIC Trust Series 2586, Class NX
$		1,803,241		4.500			08/15/16		137,458
	FNMA REMIC Trust Series 1990-145, Class B
		1,504		1,004.961			12/25/20		35,896

									173,354


	Inverse Floaters^(a) – 0.0%
	FHLMC REMIC Trust Series 1606, Class SC
		52,109		15.161			11/15/08		52,105


	Inverse Floating Rate – Interest Only^(a)(b) – 0.0%
	FNMA REMIC Trust Series 1996-20, Class SB
		6,244		12.788			10/25/08		—
	FNMA REMIC Trust Series 1996-40, Class SG
		101,933		13.298			03/25/09		2,106

									2,106


	Planned Amortization Class – 0.7%
	FHLMC REMIC Trust Series 2113, Class TE
		1,687,245		6.000			01/15/14		1,743,162
	FNMA REMIC Trust Series 1993-225, Class WC
		897,122		6.500			12/25/13		929,112

									2,672,274


	Regular Floater^(a) – 1.8%
	BCAP LLC Trust Series 2006-RR1, Class CF
		736,182		3.847			11/25/36		508,656
	Collateralized Mortgage Securities Corp. Series N, Class 2
		232,842		3.411			08/25/17		232,425
	FHLMC REMIC Trust Series 1606, Class FC
		191,305		3.598			11/15/08		190,925
	FHLMC REMIC Trust Series 1612, Class FD
		29,551		3.598			11/15/08		29,490
	FHLMC REMIC Trust Series 1661, Class FD
		292,652		3.625			01/15/09		291,745
	FHLMC REMIC Trust Series 1826, Class F
		159,809		2.900			09/15/21		158,144
	FHLMC REMIC Trust Series 3152, Class NX^(c)
		1,520,144		0.000			05/15/36		1,520,424
	FHLMC REMIC Trust Series 3171, Class FL^(c)
		596,839		0.000			01/15/36		513,158
	FNMA REMIC Trust Series 1990-145, Class A
		611,959		4.533			12/25/20		599,802
	FNMA REMIC Trust Series 1993-190, Class F
		12,791		3.748			10/25/08		12,754
	FNMA REMIC Trust Series 1993-196, Class FD
		1,357		3.598			10/25/08		1,353
	FNMA REMIC Trust Series 1993-214, Class FA
		36,512		4.175			12/25/08		36,500
	FNMA REMIC Trust Series 1993-231, Class FE
		74,502		4.275			12/25/08		74,477
	FNMA REMIC Trust Series 1997-20, Class F
		1,312,207		4.070			03/25/27		1,235,398
	FNMA REMIC Trust Series 1998-66, Class FC
		299,242		2.997			11/17/28		297,023

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – (continued)
	Regular Floater^(a) – (continued)

	FNMA REMIC Trust Series 2001-70, Class OF
$	$	1,539,154		4.157	%		10/25/31	$	1,534,405

									7,236,679


	Sequential Fixed Rate – 0.8%
	FHLMC REMIC Trust Series 1720, Class PJ
		486,399		7.250			01/15/24		492,656
	First Nationwide Trust Series 2001-4, Class 1A1
		264,755		6.750			09/21/31		264,286
	FNMA REMIC Trust Series 1994-72, Class J
		2,368,156		6.000			06/25/23		2,380,892
	FNMA REMIC Trust Series 1996-14, Class J
		27,319		6.150			03/25/09		27,394

									3,165,228


	Support – 0.0%
	FHLMC REMIC Trust Series 1639, Class M
		192,379		6.000			12/15/08		192,396


	TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS							$	37,562,103


	Commercial Mortgage-Backed Securities^(a)(b)(d) – 0.4%
	Interest Only – 0.4%
	Salomon Brothers Mortgage Securities VII Series 2002-Key2, Class X2
		88,598,000		2.281			03/18/36		1,701,161


	Federal Agencies – 56.0%
	Adjustable Rate FHLMC^(a) – 5.6%
		75,570		4.530			08/01/16		75,450
		109,140		6.240			08/01/18		109,916
		104,580		5.445			11/01/18		106,707
		562,003		5.596			11/01/18		572,452
		18,795		5.461			02/01/19		19,080
		29,450		5.813			02/01/19		29,661
		87,445		4.361			03/01/19		87,313
		47,101		6.229			03/01/19		47,332
		83,046		5.121			06/01/19		82,036
		77,655		5.132			07/01/19		77,806
		1,136,730		5.938			11/01/19		1,133,689
		1,091,470		6.913			11/01/19		1,123,637
		104,498		4.656			01/01/20		104,346
		105,760		4.361			05/01/21		106,228
		23,552		5.838			01/01/25		24,012
		86,470		4.369			10/01/26		86,318
		1,051,265		6.727			08/01/28		1,071,415
		529,597		6.502			05/01/29		536,788
		73,687		4.362			06/01/29		73,872
		2,279,511		6.777			03/01/30		2,339,248
		105,523		4.810			04/01/30		105,451
		117,073		4.640			06/01/30		117,288
		239,195		6.504			12/01/30		244,527
		7,561		6.612			01/01/31		7,631
		121,511		4.792			02/01/31		121,729
		29,239		5.040			05/01/31		29,229
		22,730		6.488			06/01/31		23,080
		10,294		7.025			11/01/31		10,307


		1,960,925		5.968			12/01/31		2,009,978
		3,304,333		7.401			12/01/31		3,429,954
		16,450		7.250			10/01/32		16,536
		4,712		5.939			02/01/33		4,699
		1,083,693		3.643			07/01/33		1,096,703
		1,805,476		3.885			09/01/33		1,817,648
		79,990		4.401			11/01/33		80,798
		849,450		6.034			05/01/35		872,580
		4,545,193		4.571			08/01/35		4,534,646

									22,330,090


	Adjustable Rate FNMA^(a) – 15.1%
		492,137		6.757			04/01/17		512,057
		49,658		4.530			08/01/17		49,309
		177,429		4.079			09/01/17		177,910
		112,496		4.168			09/01/17		111,703
		52,422		5.204			11/01/17		52,250
		57,244		4.750			12/01/17		57,001
		43,421		6.234			12/01/17		43,625
		140,357		4.094			03/01/18		139,696
		369,438		5.200			03/01/18		367,599
		1,406,839		5.065			07/01/18		1,401,041
		153,918		4.207			10/01/18		153,250
		154,461		4.361			10/01/18		154,650
		71,871		4.377			10/01/18		71,587
		432,103		5.080			10/01/18		429,310
		119,256		5.139			10/01/18		118,843
		9,415		5.069			11/01/18		9,307
		70,369		5.000			12/01/18		70,004
		203,927		4.987			01/01/19		202,477
		681,134		5.320			04/01/19		677,777
		36,275		5.919			04/01/19		36,328
		337,055		4.168			05/01/19		336,843
		1,501,139		5.044			05/01/19		1,490,378
		300,302		5.461			06/01/19		298,858
		257,143		5.638			06/01/19		257,967
		242,362		6.152			07/01/19		251,450
		482,108		5.301			08/01/19		479,905
		543,944		5.461			08/01/19		544,272
		52,051		5.672			11/01/19		51,954
		1,873,029		5.905			11/01/19		1,892,410
		10,024		5.625			04/01/20		10,052
		520,254		6.367			05/01/20		533,275
		592,838		4.976			06/01/20		588,519
		194,011		5.184			06/01/20		193,556
		292,903		5.258			11/01/20		292,215
		440,027		5.395			03/01/21		439,886
		164,215		4.999			09/01/21		166,685
		107,322		4.955			12/01/21		107,694
		1,648,356		5.180			01/01/22		1,677,600
		44,218		6.570			02/01/22		45,212
		140,613		5.371			05/20/22		142,638
		4,349,084		5.759			12/01/22		4,369,748
		394,064		6.201			02/01/23		392,422
		10,347		6.219			12/01/23		10,427
		730,581		6.172			01/01/24		740,187

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND


	Principal			Interest			Maturity
	Amount			Rate			Date		Value

Mortgage-Backed Obligations – (continued)
	Adjustable Rate FNMA^(a) – (continued)

	$	669,570			5.885	%		03/01/24	$	678,511
		7,908,576			5.106			04/01/24		7,886,674
		659,334			5.389			06/20/24		674,158
		39,547			5.448			08/01/24		40,395
		215,655			5.101			01/01/25		220,245
		390,094			5.732			02/01/27		393,202
		56,364			4.512			06/01/27		56,334
		41,016			4.250			12/01/27		40,874
		76,613			4.563			01/01/28		77,735
		121,586			5.327			05/01/28		123,227
		15,468			6.065			09/01/28		15,649
		681,197			5.410			01/01/29		677,376
		39,046			4.361			06/01/29		39,029
		29,175			4.859			06/01/29		28,943
		14,727			5.010			06/01/29		14,853
		1,144,811			5.581			05/01/30		1,146,802
		5,297			6.260			02/01/31		5,355
		98,950			5.244			05/01/31		100,477
		177,184			5.134			06/01/31		175,777
		1,150,261			3.980			07/01/31		1,154,882
		110,791			3.923			08/01/31		111,571
		299,635			5.048			08/01/31		297,414
		485,160			5.465			11/01/31		490,972
		215,683			6.240			12/01/31		218,353
		161,556			5.482			01/01/32		164,133
		248,895			4.930			02/01/32		251,609
		61,534			4.890			03/01/32		59,587
		24,254			5.549			03/01/32		24,657
		653,664			6.064			03/01/32		667,926
		19,048			5.250			04/01/32		19,349
		623,327			5.439			04/01/32		639,777
		42,255			5.496			05/01/32		42,419
		304,255			6.364			07/01/32		309,425
		34,195	��		5.525			08/01/32		34,681
		37,076			5.000			09/01/32		37,882
		482,882			5.052			09/01/32		490,268
		38,618			5.860			09/01/32		39,047
		12,893			6.249			09/01/32		13,072
		83,915			6.698			09/01/32		84,437
		45,292			5.589			10/01/32		45,304
		11,662			6.458			12/01/32		11,848
		229,523			6.370			01/01/33		234,013
		936,431			5.560			02/01/33		925,131
		3,809,250			4.508			03/01/33		3,782,028
		72,619			4.522			04/01/33		72,922
		270,365			5.458			04/01/33		278,534
		1,141,979			3.957			05/01/33		1,161,131
		4,378,014			4.364			05/01/33		4,407,007
		462,193			5.083			05/01/33		461,071
		2,084,763			4.074			07/01/33		2,098,448
		1,823,009			4.330			08/01/33		1,816,214
		51,583			5.559			08/01/33		52,659
		193,473			4.257			01/01/34		196,039
		37,697			5.920			02/01/34		38,607
		2,779,533			4.733			10/01/34		2,810,467
		1,889,061			4.370			04/01/35		1,888,783


		1,845,108			4.633			10/01/35		1,848,535
		38,353			4.480			05/01/36		38,734
		9,623			5.584			11/01/38		9,700
		200,074			4.478			06/01/40		201,182
		725,189			5.003			07/01/40		743,523
		28,100			4.278			02/01/41		27,932

										60,846,766


	Adjustable Rate GNMA^(a) – 5.4%
		3,234,915			3.750			04/20/34		3,145,007
		12,553,368			5.500			08/20/34		12,527,534
		1,755,485			5.625			08/20/34		1,755,685
		4,531,959			4.750			12/20/34		4,482,986

										21,911,212


	FHLMC – 3.5%
		165,489			7.000			02/01/09		167,140
		93,113			7.000			03/01/09		94,630
��		177,810			7.000			04/01/09		179,387
		96,902			7.000			05/01/09		98,916
		117,226			7.000			06/01/09		119,663
		43,997			7.500			06/01/09		44,423
		162,806			6.500			03/01/13		167,623
		241,274			6.500			04/01/13		248,412
		123,578			6.500			05/01/13		127,233
		314,876			6.500			06/01/13		324,192
		613,844			5.000			12/01/13		619,171
		681,995			4.000			01/01/14		673,958
		1,979,799			8.000			12/01/15		2,085,492
		436,291			6.000			05/01/17		446,455
		524,772			7.000			04/01/21		551,889
		276,540			7.000			08/01/21		290,830
		2,135,806			7.000			03/01/22		2,245,705
		750,938			7.000			05/01/22		789,578
		2,893,266			7.000			06/01/22		3,042,140
		38,270			7.000			12/01/25		40,454
		1,658,088			7.000			11/01/37		1,729,210

										14,086,501


	FNMA – 26.4%
		4,403,977			4.000			05/01/10		4,390,287
		5,081,380			4.000			06/01/10		5,065,609
		745,891			6.000			09/01/11		758,349
		962,101			6.500			04/01/12		1,005,892
		1,943,927			6.000			05/01/12		1,976,838
		426,655			6.500			05/01/12		446,512
		1,464,779			6.000			06/01/12		1,489,618
		495,105			6.500			06/01/12		518,382
		7,309,745			5.500			01/01/13		7,467,882
		1,744,777			4.500			08/01/13		1,741,710
		7,768,637			4.500			09/01/13		7,757,416
		877,776			8.000			01/01/16		930,836
		783,517			7.000			03/01/17		825,923
		204,931			7.000			05/01/17		216,022
		7,504,747			5.500			03/01/18		7,586,962
		830,129			5.500			04/01/18		839,223
		264,270			7.000			07/01/21		277,947

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date			Value

Mortgage-Backed Obligations – (continued)
	FNMA – (continued)

	$	411,317		7.000	%		11/01/21		$	432,603
		130,103		7.000			12/01/21			136,836
		403,528		7.000			01/01/22			424,411
		79,050		7.000			02/01/22			83,141
		243,058		7.000			01/01/28			256,962
		341,653		6.500			04/01/33			352,263
		45,701		5.500			02/01/36			45,616
		291,178		6.500			09/01/36			298,904
		31,667		7.000			09/01/36			33,082
		508,466		6.500			11/01/36			521,956
		462,254		5.000			01/01/37			450,860
		908,709		7.000			01/01/37			949,118
		200,353		6.500			03/01/37			205,668
		482,024		7.000			03/01/37			503,566
		11,446,638		7.000			04/01/37			11,958,181
		318,405		6.500			09/01/37			326,838
		834,550		6.500			10/01/37			856,688
		13,653,302		7.500			10/01/37			14,345,535
		8,095,987		8.000			10/01/37			8,564,471
		6,818,287		7.000			11/01/37			7,131,963
		397,945		6.500			12/01/37			408,480
		46,780		5.500			01/01/38			46,690
		513,678		5.000			03/01/38			500,855
		833,609		7.000			03/01/38			871,966
		961,969		6.000			05/01/38			975,411
		905,397		5.500			06/01/38			903,571
		41,217		6.500			06/01/38			42,309
		44,132		6.500			09/01/38			45,296
		11,000,000		6.500			TBA-15yr	^(e)		11,278,432

										106,247,080


	GNMA – 0.0%
		45,991		7.000			12/15/25			49,197
		120,857		7.000			04/15/26			128,365

										177,562


	TOTAL FEDERAL AGENCIES								$	225,599,211


	TOTAL MORTGAGE-BACKED OBLIGATIONS
	(Cost $277,629,247)								$	264,862,475




Agency Debentures – 27.4%


	FHLB
	$	10,000,000		5.125	%^(f)(g)		12/29/08		$	10,050,120
		20,000,000		5.250			01/16/09			20,120,560
		7,900,000		3.250	^(f)		03/11/11			7,860,840
	FHLMC
		13,500,000		0.000	^(h)		02/02/09			13,362,826
		15,000,000		5.400			06/15/10			15,252,330
	FNMA^(f)(h)
		22,200,000		0.000			02/23/09			21,936,220
		22,200,000		0.000			02/24/09			21,934,399


	TOTAL AGENCY DEBENTURES
	(Cost $110,532,499)								$	110,517,295




U.S. Treasury Obligations^(f) – 5.5%


	United States Treasury Bill^(h)
		6,600,000		0.000			08/27/09			6,493,945
	United States Treasury Inflation Protected Securities
		5,632,242		3.875			01/15/09			5,616,843
	United States Treasury Note
		7,400,000		8.125			08/15/19			9,931,607


	TOTAL U.S. TREASURY OBLIGATIONS
	(Cost $21,929,756)								$	22,042,395




Asset-Backed Security^(a) – 0.1%


	Home Equity – 0.1%
	Countrywide Home Equity Loan Trust Series 2004-G, Class 2A
	$	784,839		2.708	%		12/15/29		$	525,757
	(Cost $783,245)




Corporate Bond – 2.9%


	Banks – 2.9%
	Kreditanstalt fuer Wiederaufbau MTN
	$	11,700,000		3.050	%		11/07/09		$	11,525,085
	(Cost $11,674,958)


	TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL – 101.6%
	(Cost $422,549,705)								$	409,473,007


			Interest
	Shares		Rate	Value

Securities Lending Collateral^(a) – 21.3%


	State Street Navigator Securities Lending Prime Portfolio
		85,715,886	2.830%	$	85,715,886
	(Cost $85,715,886)


	TOTAL INVESTMENTS – 122.9%
	(Cost $508,265,591)			$	495,188,893


	LIABILITIES IN EXCESS OF OTHER ASSETS – (22.9)%				(92,420,028	)


	NET ASSETS – 100.0%			$	402,768,865

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND

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


(a)		Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2008.

(b)		Represents security with notional or nominal principal amount. The actual effective yield of this security is different than the stated interest rate.

(c)		Security is issued with zero coupon and interest rate is contingent upon LIBOR reaching a predetermined level.

(d)		Securities are exempt from registration under Rule 144A of the Securities Act of 1933. Under procedures approved by the Board of Trustees, such securities have been determined to be liquid by the investment advisor and may be resold, normally to qualified institutional buyers in transactions exempt from registration. Total market value of Rule 144A securities amounts to $1,701,161, which represents approximately 0.4% of net assets as of September 30, 2008.


(e)		TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement when the specific mortgage pools are assigned. Total market value of TBA securities (excluding forward sales contracts, if any) amounts to $11,278,432 which represents approximately 2.8% of net assets as of September 30, 2008.

(f)		All or a portion of security is on loan.

(g)		A portion of this security is segregated as collateral for initial margin requirement on futures transactions.

(h)		Security issued with a zero coupon. Income is recognized through the accretion of discount.




Investment Abbreviations:
FHLB	—	Federal Home Loan Bank
FHLMC	—	Federal Home Loan Mortgage Corp.
FNMA	—	Federal National Mortgage Association
GNMA	—	Government National Mortgage Association
LIBOR	—	London Interbank Offered Rate
MTN	—	Medium-Term Note
REMIC	—	Real Estate Mortgage Investment Conduit

ADDITIONAL INVESTMENT INFORMATION

FORWARD SALES CONTRACT — At September 30, 2008, the Fund had the following forward sales contract:

Interest

Maturity

Settlement

Principal

Description

Rate

Date

Amount

Value

FNMA (Proceeds Receivable: $19,878,125)

7.000%

TBA-15yr^(e

⁾

10/14/08

19,000,000

19,849,071

FUTURES CONTRACTS — At September 30, 2008, the following futures contracts were open:


	Number of
	Contracts			Settlement	Notional			Unrealized
Type	Long (Short)			Month	Value			Gain (Loss)

Eurodollars		107		December 2008	$	25,825,788		$	(143,380	)
Eurodollars		107		March 2009		25,956,863			(37,717	)
Eurodollars		(73	)	June 2009		(17,695,200	)		(135,404	)
Eurodollars		(158	)	September 2009		(38,265,625	)		(186,045	)
Eurodollars		(232	)	December 2009		(56,004,800	)		(147,459	)
Eurodollars		(57	)	March 2010		(13,737,000	)		(150,826	)
Federal Funds		1		September 2008		409,168			2,116
Federal Funds		98		November 2008		40,144,420			265,313
U.S. Treasury Bonds		72		December 2008		8,436,375			(75,975	)
2 Year U.S. Treasury Notes		311		December 2008		66,379,063			426,718
5 Year U.S. Treasury Notes		(45	)	December 2008		(5,050,547	)		12,232
10 Year U.S. Treasury Notes		(35	)	December 2008		(4,011,875	)		31,099


TOTAL								$	(139,328	)

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


ADDITIONAL INVESTMENT INFORMATION (CONTINUED)

INTEREST RATE SWAP CONTRACTS — At September 30, 2008, the Fund had outstanding swap contracts with the following terms^(a):


					Rates Exchanged		Upfront
	Notional				Payments	Payments	Payments made
	Amount		Termination		received by	made by	(received) by			Unrealized
Swap Counterparty	(000s)		Date		the Fund	the Fund	the Fund			Gain (Loss)

Banc of America Securities LLC	$	3,200		12/17/18	3 month LIBOR	4.750%	$	41,424		$	(99,859	)
		1,000		12/17/18	4.750%	3 month LIBOR		33,291			(15,030	)
		1,000		12/17/28	3 month LIBOR	5.000		(52,614	)		14,612
Credit Suisse First Boston Corp.		2,500		12/17/18	4.750	3 month LIBOR		49,773			(4,121	)
		1,100		12/17/23	3 month LIBOR	4.750		13,511			(24,059	)
		2,400		12/17/28	3 month LIBOR	5.000		(78,868	)		(12,336	)
		1,000		12/17/38	5.000	3 month LIBOR		(9,021	)		55,265
Deutsche Bank Securities, Inc.		1,800		12/17/18	4.750	3 month LIBOR		31,500			1,370
		1,800		12/17/28	3 month LIBOR	5.000		(46,894	)		(21,509	)
JPMorgan Securities, Inc.		30,300		12/17/13	3 month LIBOR	4.250		(211,782	)		75,884
		47,300		12/17/15	4.500	3 month LIBOR		188,068			254,245
		1,000		12/17/18	4.750	3 month LIBOR		33,359			(15,098	)
		40,300		12/17/18	3 month LIBOR	4.750		203,928			(939,848	)
		7,900		12/17/23	3 month LIBOR	4.750		97,290			(173,046	)
		5,500		12/17/28	3 month LIBOR	5.000		(83,051	)		(125,958	)
		1,900		12/17/38	5.000	3 month LIBOR		(17,870	)		105,733


TOTAL							$	192,044		$	(923,755	)


^(a)	Represents forward starting interest rate swaps whose effective dates of commencement of accruals and cash flows occur subsequent to September 30, 2008.

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

ADDITIONAL INVESTMENT INFORMATION (continued)

JOINT REPURCHASE AGREEMENT ACCOUNT II — At September 30, 2008, certain Funds had undivided interests in the Joint Repurchase Agreement Account II, as follows:


Fund	Principal Amount

Government Income	$	91,500,000


Inflation Protected Securities		1,000,000


Short Duration Government		191,500,000

REPURCHASE AGREEMENTS


	Principal		Interest			Maturity		Maturity
Counterparty	Amount		Rate			Date		Value

ABN Amro, Inc.	$	1,000,000,000		2.25	%		10/01/08	$	1,000,062,500


Banc of America Securities LLC		1,500,000,000		2.25			10/01/08		1,500,093,750


Barclays Capital, Inc.		100,000,000		0.25			10/01/08		100,000,694


Barclays Capital, Inc.		497,800,000		1.00			10/01/08		497,813,828


Barclays Capital, Inc.		5,850,000,000		2.25			10/01/08		5,850,365,625


Credit Suisse Securities (USA) LLC		150,000,000		1.80			10/01/08		150,007,500


Deutsche Bank Securities, Inc.		300,000,000		2.75			10/01/08		300,022,917


Greenwich Capital Markets		750,000,000		2.50			10/01/08		750,052,083


JPMorgan Securities		1,600,000,000		2.00			10/01/08		1,600,088,889


Merrill Lynch & Co., Inc.		2,000,000,000		1.50			10/01/08		2,000,083,333


Morgan Stanley & Co.		800,000,000		0.40			10/01/08		800,008,889


Morgan Stanley & Co.		500,000,000		1.75			10/01/08		500,024,306


UBS Securities LLC		950,000,000		1.50			10/01/08		950,039,583


TOTAL								$	15,998,663,897

At September 30, 2008, the Joint Repurchase Agreement Account II was fully collateralized by Federal Farm Credit Bank 0.000%, due 01/08/09; Federal Home Loan Bank, 0.000% to 5.250%, due 10/27/08 to 06/05/17; Federal Home Loan Mortgage Corp., 3.250% to 7.500%, due 03/05/09 to 12/01/47; Federal National Mortgage Association, 3.000% to 15.500%, due 12/01/08 to 10/01/48 and U.S. Treasury Note, 7.500%, due 11/15/16. The aggregate market value of the collateral, including accrued interest, was $16,356,152,736.

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Statements of Assets and Liabilities

September 30, 2008 (Unaudited)


	Enhanced Income
	Fund



Assets:

Investments in securities, at value (identified cost $264,554,255, $939,138,741, $97,752,555, $1,226,084,474 and $422,549,705, respectively)^(a)	$	261,683,793
Repurchase agreement, at value which equals cost		—
Securities lending collateral, at value which equals cost		78,494,988
Cash		—
Receivables:
Investment securities sold		4,137,876
Interest		1,470,571
Fund shares sold		1,227,700
Due from broker — swap collateral^(b)		—
Due from broker — variation margin		414,963
Reimbursement from investment adviser		119,498
Securities lending income		56,015
Premium for swaps sold		—
Swap contracts, at value (includes upfront payments made of $0, $1,010,847, $27,744, $639,181 and $309,100, respectively)		—
Other assets		555


Total assets		347,605,959





Liabilities:

Due to Custodian		2,066,402
Payables:
Payable upon return of securities loaned		78,494,988
Investment securities purchased		—
Due to broker — variation margin		444,776
Fund shares redeemed		142,555
Amounts owed to affiliates		67,530
Income distribution		50,333
Forward sale contracts, at value (proceeds receivable $0, $37,648,438, $0, $387,892,187, $19,878,125, respectively)		—
Swap contracts, at value (includes upfront payments made (received) of $0, ($317,797), $45,369, $115,184 and $117,056, respectively)		227,285
Accrued expenses		143,333


Total liabilities		81,637,202





Net Assets:

Paid-in capital		352,145,522
Accumulated undistributed net investment income		2,008,587
Accumulated net realized gain (loss) from investment, futures and swap transactions		(85,256,732	)
Net unrealized gain (loss) on investments, futures and swaps		(2,928,620	)


NET ASSETS	$	265,968,757



Net Assets:
Class A	$	38,223,506
Class B		2,849,192
Class C		—
Institutional		224,625,939
Administration		270,120
Service		—
Class IR		—
Class R		—



Total Net Assets	$	265,968,757


Shares Outstanding $0.001 par value (unlimited shares authorized):
Class A		4,034,283
Class B		301,252
Class C		—
Institutional		23,733,762
Administration		28,470
Service		—
Class IR		—
Class R		—


Net asset value, offering and redemption price per share:^(c)
Class A		$9.47
Class B		9.46
Class C		—
Institutional		9.46
Administration		9.49
Service		—
Class IR		—
Class R		—


(a)		Includes loaned securities having a market value of $76,831,810, $48,472,873, $27,696,890, $187,245,048 and $83,868,794 for the Enhanced Income, Government Income, Inflation Protected Securities, Short Duration Government and Ultra-Short Duration Government Funds, respectively.
(b)		Represents restricted cash on deposit with the counterparties as collateral for swaps for the Government Income, Inflation Protected Securities, Short Duration Government and Ultra-Short Duration Government Funds.
(c)		Maximum public offering price per share for Class A shares of the Enhanced Income and Ultra-Short Duration Government Funds (NAV per share multiplied by 1.0152), Short Duration Government Fund (NAV per share multiplied by 1.0204), Government Income Fund (NAV per share multiplied by 1.0471) and Inflation Protected Securities Fund (NAV per share multiplied by 1.0475) is $9.61, $9.14, $10.29, $15.42 and $11.02, respectively. At redemption, Class B and Class C shares may be subject to a contingent deferred sales charge, assessed on the amount equal to the lesser of the current net asset value or the original purchase price of the shares.

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


									Ultra-Short
Government Income			Inflation Protected			Short Duration			Duration Government
Fund			Securities Fund			Government Fund			Fund





$	915,427,096		$	92,120,256		$	1,222,983,440		$	409,473,007
	91,500,000			1,000,000			191,500,000			—
	50,750,430			28,841,528			191,298,349			85,715,886
	2,049,274			74,244			80,212			—

	69,302,585			—			404,718,718			37,349,638
	5,104,495			491,528			6,272,406			2,337,211
	5,746,849			411,370			12,721,856			1,165,870
	1,300,000			—			3,251,184			2,006,223
	413,526			8,531			537,144			703,116
	33,570			36,847			88,170			5,086
	13,668			19,495			88,916			46,644
	—			6,491			—			—
	5,791,123			31,788			985,238			691,464
	60,482			—			49,851			1,067


	1,147,493,098			123,042,078			2,034,575,484			539,495,212







	—			—			—			13,019,187

	50,750,430			28,841,528			191,298,349			85,715,886
	91,119,141			—			53,936,979			11,966,627
	2,520,469			35,930			5,805,027			847,918
	2,606,538			1,592,576			47,842,863			3,132,961
	663,917			43,468			748,302			190,543
	893,597			43,777			502,040			449,163
	37,608,767			—			382,709,232			19,849,071
	4,666,211			53,055			2,211,945			1,423,175
	258,482			135,699			161,444			131,816


	191,087,552			30,746,033			685,216,181			136,726,347







	969,983,676			95,404,652			1,344,880,554			565,615,799
	3,458,293			2,245,453			2,663,460			1,588,401
	7,005,323			304,121			(4,459,696	)		(150,324,608	)
	(24,041,746	)		(5,658,181	)		6,274,985			(14,110,727	)


$	956,405,546		$	92,296,045		$	1,349,359,303		$	402,768,865




$	513,218,995		$	47,793,596		$	473,108,716		$	115,452,435
	46,020,530			—			6,589,696			—
	31,215,513			7,541,572			54,194,678			—
	291,927,322			36,940,574			707,302,257			283,736,161
	—			—			—			—
	74,002,913			—			108,153,448			3,570,203
	10,155			10,172			10,508			10,066
	10,118			10,131			—			—



$	956,405,546		$	92,296,045		$	1,349,359,303		$	402,768,865



	34,831,576			4,543,954			46,934,112			12,828,970
	3,123,066			—			656,129			—
	2,119,235			714,783			5,410,294			—
	19,839,034			3,502,469			70,385,873			31,513,181
	—			—			—			—
	5,033,717			—			10,776,295			394,865
	689			965			1,042			1,119
	687			962			—			—



	$14.73			$10.52			$10.08			$9.00
	14.74			—			10.04			—
	14.73			10.55			10.02			—
	14.71			10.55			10.05			9.00
	—			—			—			—
	14.70			—			10.04			9.04
	14.73			10.54			10.08			9.00
	14.73			10.54			—			—

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Statements of Operations

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


	Enhanced Income
	Fund




Investment income:

Interest (including securities lending income of $85,340, $143,552, $54,605, $378,979 and $104,288, respectively)	$	4,929,399





Expenses:

Management fees		339,469
Transfer Agent fees^(a)		73,596
Distribution and Service fees^(a)		65,867
Professional fees		91,509
Registration fees		48,764
Printing fees		41,771
Custody and accounting fees		22,955
Service share fees — Service Plan		—
Service share fees — Shareholder Administration Plan		—
Trustee fees		7,018
Amortization of offering costs		—
Administration share fees		336
Other		1,680


Total expenses		692,965


Less — expense reductions		(283,174	)


Net expenses		409,791


NET INVESTMENT INCOME		4,519,608





Realized and unrealized gain (loss) from investment, futures and swap transactions:

Net realized gain (loss) from:
Investment transactions		(1,048,728	)
Futures transactions		1,067,375
Swap contracts		—
Net change in unrealized gain (loss) on:
Investments		(4,133,827	)
Futures		(359,954	)
Swap contracts		(227,285	)


Net realized and unrealized loss from investment, futures and swap transactions		(4,702,419	)


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(182,811	)


(a)	Class specific Distribution and Service, and Transfer Agent fees were as follows:


	Distribution and Service Fees								Transfer Agent Fees
Fund	Class A		Class B		Class C		Class R		Class A		Class B		Class C		Institutional		Administration		Service		Class IR		Class R
Enhanced Income	$	49,456	$	16,410		N/A		N/A	$	25,717	$	2,134		N/A	$	45,692	$	53		N/A		N/A		N/A
Government Income		626,047		237,660	$	147,145	$	26		325,545		30,896	$	19,129		60,604		N/A	$	13,040	$	7	$	7
Inflation Protected Securities		43,069		N/A		25,243		26		22,396		N/A		3,282		4,727		N/A		N/A		7		7
Short Duration Government		509,922		36,476		210,753		N/A		265,160		4,742		27,398		147,160		N/A		12,046		7		N/A
Ultra-Short Duration Government		138,568		N/A		N/A		N/A		72,055		N/A		N/A		73,582		N/A		719		7		N/A

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


									Ultra-Short
Government Income			Inflation Protected			Short Duration			Duration Government
Fund			Securities Fund			Government Fund			Fund






$	23,736,936		$	2,956,917		$	25,870,090		$	10,347,246







	2,554,308			104,214			3,070,895			964,734
	449,228			30,419			456,513			146,363
	1,010,878			68,338			757,151			138,568
	68,802			34,807			78,712			67,288
	31,047			38,696			62,774			44,201
	44,754			7,941			68,864			42,238
	94,095			28,294			78,391			43,609
	81,499			—			75,289			4,495
	81,499			—			75,289			4,495
	7,018			7,018			7,018			7,018
	—			156,086			—			—
	—			—			—			—
	39,403			15,084			35,012			6,856


	4,462,531			490,897			4,765,908			1,469,865


	(306,241	)		(299,882	)		(348,914	)		(124,519	)


	4,156,290			191,015			4,416,994			1,345,346


	19,580,646			2,765,902			21,453,096			9,001,900










	(177,588	)		209,932			2,912,324			(783,009	)
	4,113,437			21,503			1,341,048			237,048
	1,486,940			25,058			(1,110,423	)		(627,499	)



	(21,165,623	)		(6,734,703	)		(9,480,383	)		(6,055,279	)
	(1,986,828	)		(39,951	)		427,553			510,362
	(5,222,107	)		(20,901	)		688,615			774,818




	(22,951,769	)		(6,539,062	)		(5,221,266	)		(5,943,559	)


$	(3,371,123	)	$	(3,773,160	)	$	16,231,830		$	3,058,341

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Statements of Changes in Net Assets


	Enhanced Income Fund
	For the
	Six Months Ended			For the Period			For the
	September 30, 2008			November 1, 2007 to			Year Ended
	(Unaudited)			March 31, 2008*			October 31, 2007




From operations:

Net investment income	$	4,519,608		$	4,785,316		$	11,804,717
Net realized gain (loss) from investment, futures and swap transactions		18,647			(2,805,478	)		(1,198,957	)
Payments by affiliates relating to certain investment transactions		—			—			84,892
Net change in unrealized gain (loss) on investments, futures and swaps		(4,721,066	)		1,711,955			1,013,168


Net increase (decrease) in net assets resulting from operations		(182,811	)		3,691,793			11,703,820





Distributions to shareholders:

From net investment income
Class A Shares		(703,786	)		(618,602	)		(1,560,570	)
Class B Shares		(46,136	)		(52,976	)		(81,708	)^(b)
Class C Shares		—			—			—
Institutional Shares		(4,457,263	)		(4,402,325	)		(10,420,581	)
Administration Shares		(4,888	)		(4,537	)		(32,595	)
Service Shares		—			—			—
Class IR Shares^(c)		—			—			—
Class R Shares^(c)		—			—			—


Total distributions to shareholders		(5,212,073	)		(5,078,440	)		(12,095,454	)





From share transactions:

Net proceeds from sales of shares		65,986,097			46,573,237			274,886,067
Proceeds received in connection with merger		—			—			49,242,410
Reinvestment of distributions		4,946,125			4,677,812			9,178,668
Cost of shares redeemed		(71,921,350	)		(59,710,474	)		(262,183,456	)


Net increase (decrease) in net assets resulting from share transactions		(989,128	)		(8,459,425	)		71,123,689


TOTAL INCREASE (DECREASE)		(6,384,012	)		(9,846,072	)		70,732,055





Net assets:

Beginning of period		272,352,769			282,198,841			211,466,786


End of period	$	265,968,757		$	272,352,769		$	282,198,841


Accumulated undistributed net investment income	$	2,008,587		$	2,701,052		$	2,956,463

* The Fund changed its fiscal year end from October 31 to March 31.

(a) Commenced operations on August 31, 2007.

(b) Commenced operations on June 20, 2007.

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


Government Income Fund									Inflation Protected Securities Fund^(a)
For the									For the
Six Months Ended			For the Period			For the			Six Months Ended			For the
September 30, 2008			November 1, 2007 to			Year Ended			September 30, 2008			Period Ended
(Unaudited)			March 31, 2008*			October 31, 2007			(Unaudited)			March 31, 2008




$	19,580,646		$	16,289,920		$	28,771,075		$	2,765,902		$	335,127
	5,422,789			18,082,409			(4,693,240	)		256,493			47,628
	—			—			—			—			—
	(28,374,558	)		(3,447,393	)		15,329,835			(6,795,555	)		1,137,374


	(3,371,123	)		30,924,936			39,407,670			(3,773,160	)		1,520,129








	(9,460,850	)		(7,959,110	)		(15,164,674	)		(349,027	)		(44,435	)
	(718,870	)		(684,993	)		(929,692	)		—			—
	(441,562	)		(347,002	)		(571,212	)		(32,506	)		(2,068	)
	(6,246,528	)		(5,949,169	)		(9,933,380	)		(290,459	)		(137,283	)
	—			—			—			—			—
	(1,188,307	)		(887,342	)		(1,269,402	)		—			—
	(204	)		(146	)		—			(106	)		(93	)
	(184	)		(132	)		—			(80	)		(77	)


	(18,056,505	)		(15,827,894	)		(27,868,360	)		(672,178	)		(183,956	)







	275,969,020			303,222,484			515,906,529			83,114,116			34,022,583
	—			—			191,467,247			—			—
	13,143,424			11,998,861			22,514,819			598,389			181,246
	(263,479,686	)		(253,423,430	)		(504,773,300	)		(21,943,855	)		(567,269	)


	25,632,758			61,797,915			225,115,295			61,768,650			33,636,560


	4,205,130			76,894,957			236,654,605			57,323,312			34,972,733







	952,200,416			875,305,459			638,650,854			34,972,733			—


$	956,405,546		$	952,200,416		$	875,305,459		$	92,296,045		$	34,972,733


$	3,458,293		$	1,934,152		$	1,915,675		$	2,245,453		$	151,729

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Statements of Changes in Net Assets


	Short Duration Government Fund
	For the
	Six Months Ended			For the Period			For the
	September 30, 2008			November 1, 2007 to			Year Ended
	(Unaudited)			March 31, 2008*			October 31, 2007


From operations:

Net investment income	$	21,453,096		$	18,420,189		$	34,460,079
Net realized gain (loss) from investment, futures and swap transactions		3,142,949			26,469,067			(2,171,745	)
Net change in unrealized gain (loss) on investments, futures and swaps		(8,364,215	)		6,453,933			13,809,945


Net increase in net assets resulting from operations		16,231,830			51,343,189			46,098,279





Distributions to shareholders:

From net investment income
Class A Shares		(7,244,129	)		(5,537,180	)		(11,015,681	)
Class B Shares		(108,170	)		(116,865	)		(379,726	)
Class C Shares		(592,362	)		(435,474	)		(1,036,583	)
Institutional Shares		(14,358,089	)		(11,037,626	)		(22,217,549	)
Service Shares		(985,813	)		(130,830	)		(333,877	)
Class IR Shares^(a)		(197	)		(134	)		—


Total distributions to shareholders		(23,288,760	)		(17,258,109	)		(34,983,416	)





From share transactions:

Net proceeds from sales of shares		615,526,848			396,783,443			572,642,236
Reinvestment of distributions		20,311,623			15,256,803			28,636,582
Cost of shares redeemed		(492,288,368	)		(213,921,053	)		(491,981,534	)


Net increase (decrease) in net assets resulting from share transactions		143,550,103			198,119,193			109,297,284


TOTAL INCREASE (DECREASE)		136,493,173			232,204,273			120,412,147





Net assets:

Beginning of period		1,212,866,130			980,661,857			860,249,710


End of period	$	1,349,359,303		$	1,212,866,130		$	980,661,857


Accumulated undistributed net investment income	$	2,663,460		$	4,499,124		$	2,517,491

*��The Fund changed its fiscal year end from October 31 to March 31.

(a) Commenced operations on November 30, 2007.

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


Ultra-Short Duration Government Fund
For the
Six Months Ended			For the Period			For the
September 30, 2008			November 1, 2007 to			Year Ended
(Unaudited)			March 31, 2008*			October 31, 2007




$	9,001,900		$	8,815,631		$	19,158,585
	(1,173,460	)		4,565,596			(3,703,946	)
	(4,770,099	)		(11,440,610	)		8,667,501


	3,058,341			1,940,617			24,122,140








	(2,096,505	)		(1,723,045	)		(4,995,482	)
	—			—			—
	—			—			—
	(7,546,012	)		(8,066,469	)		(17,981,942	)
	(64,921	)		(63,691	)		(607,676	)
	(204	)		(151	)		—


	(9,707,642	)		(9,853,356	)		(23,585,100	)







	199,955,887			85,176,903			288,679,993
	6,330,993			6,086,154			13,447,997
	(313,139,007	)		(84,212,525	)		(243,345,377	)


	(106,852,127	)		7,050,532			58,782,613


	(113,501,428	)		(862,207	)		59,319,653







	516,270,293			517,132,500			457,812,847


$	402,768,865		$	516,270,293		$	517,132,500


$	1,588,401		$	2,294,143		$	2,658,627

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements

September 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 following are Goldman Sachs Funds included in this report (collectively, the “Funds” or individually a “Fund”), the share classes offered by each Fund and their diversification status under the Act:


Fund	Share Classes Offered	Diversified/Non-diversified

Enhanced Income	A, B, Institutional and Administration	Diversified


Government Income	A, B, C, Institutional, Service, IR and R	Diversified


Inflation Protected Securities	A, C, Institutional, IR and R	Diversified


Short Duration Government	A, B, C, Institutional, Service and IR	Diversified


Ultra-Short Duration Government	A, Institutional, Service and IR	Diversified

Class A shares charge a maximum initial sales charge of 1.50% for Enhanced Income and Ultra-Short Duration Government, 2.00% for Short Duration Government and 4.50% for Government Income and Inflation Protected Securities. The contingent deferred sales charge for Class B Shares is 5.00% maximum declining to zero after six years for Enhanced Income and Government Income and 2.00% maximum declining to zero after three years for Short Duration Government. The Class C Shares of Short Duration Government, Government Income and Inflation Protected Securities have a contingent deferred sales charge of 1.00% during the first 12 months. Institutional, Administration, Service, Class IR and Class R Shares of the Funds are not subject to a sales charge. Goldman, Sachs & Co. (“Goldman Sachs”) serves as Distributor of the shares of the Funds pursuant to a Distribution Agreement, receives such sales charges and may retain a portion of such sales charges.

Goldman Sachs Asset Management, L.P., (“GSAM”), an affiliate of Goldman Sachs, serves as investment adviser pursuant to a Management Agreement (the “Agreement”) with the Trust on behalf of the Funds.

The Enhanced Income, Government Income, Short Duration Government and Ultra-Short Duration Government Funds changed their fiscal year end from October 31 to March 31. GSAM has agreed to reimburse these Funds for any costs associated with changing the Funds fiscal year ends.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of the significant accounting policies consistently followed by the Funds. The preparation of financial statements in conformity with Generally Accepted Accounting Principles in the United States of America (“GAAP”) requires management to make estimates and assumptions that may affect amounts. Actual results could differ from those estimates.

A. Investment Valuation — The investment valuation policy of the Funds is to value investments at market value. The Funds’ investments for which market quotations are readily available are valued on the basis of quotations furnished by an independent pricing service or provided by securities dealers. The pricing services may use valuation models or matrix pricing, which considers yield or price with respect to comparable bonds, quotations from bond dealers or by reference to

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

other securities that are considered comparable in such characteristics as rating, interest rate and maturity date, to determine current value. If accurate quotations are not readily available, or if GSAM believes that such quotations do not accurately reflect fair value, the fair value of the Funds’ investments may be determined based on yield equivalents, a pricing matrix or other sources, under valuation procedures established by the Board of Trustees. Short-term debt obligations maturing in sixty days or less are valued at amortized cost, which approximates market value.

GSAM, consistent with its procedures and applicable regulatory guidance, may determine to make an adjustment to the previous closing prices of either domestic or foreign securities in light of significant events, to reflect what it believes to be the fair value of the securities at the time of determining the Funds’ net asset value per share. Significant events that could affect a large number of securities in a particular market may include, but are not limited to: situations relating to one or more single issuers in a market sector; significant fluctuations in U.S. or foreign markets; market dislocations; market disruptions or market closings; equipment failures; natural or man-made disasters or acts of God; armed conflicts; government actions or other developments; as well as the same or similar events which may affect specific issuers or the securities markets even though not tied directly to the securities markets. Other significant events that could relate to a single issuer may include, but are not limited to: corporate actions such as reorganizations, mergers and buy-outs; corporate announcements, including those relating to earnings, products and regulatory news; significant litigation; low trading volume; and trading limits or suspensions.

B. Security Transactions and Investment 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. Dividend income is recognized on the ex-dividend date, net of foreign withholding taxes, if any, which are reduced by any amounts reclaimable by the Funds, where applicable. Interest income is recorded on the basis of interest accrued, premium amortized and discount accreted. Certain mortgage security paydown gains and losses are recorded as interest income (loss) and are included in interest income in the accompanying Statements of Operations.

Net investment income (other than class specific expenses) and unrealized and realized gains or losses are allocated daily to each class of shares of the respective Fund based upon the relative proportion of net assets of each class.

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

D. Federal Taxes and Distributions to Shareholders — It is each Fund’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 income and capital gains to its shareholders. Accordingly, no federal tax provisions are required. Distributions to shareholders are recorded on the ex-dividend date. Income and capital gains distributions, if any, are declared and paid according to the following schedule:


	Income Distributions		Capital Gains Distributions
Fund	Declared and Paid		Declared and Paid

Enhanced Income, Government Income, Inflation Protected Securities, Short Duration Government and Ultra-Short Duration Government		Daily/Monthly		Annually

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2008 (Unaudited)


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Net capital losses are carried forward to future years and may be used to the extent allowed by the Code to offset any future capital gains. Utilization of capital loss carryforwards will reduce the requirement of future capital gain distributions.

The characterization of distributions to shareholders for financial reporting purposes is determined in accordance with Federal income tax rules, which may differ from GAAP. The source of each Fund’s distributions may be shown in the accompanying financial statements as either from net investment income, net realized gain, or capital.

GSAM has reviewed the tax positions for the Funds under Financial Accounting Standards Board (“FASB”) Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”) for the open tax years (tax years ended October 31, 2005-2007 and March 31, 2008) and determined that the application of FIN 48 did not have a material impact on the Funds’ financial statements. FIN 48 establishes financial accounting and disclosure requirements for recognition and measurement of tax positions taken or expected to be taken on a U.S. income tax return.

E. Futures Contracts — The Funds may purchase or sell futures contracts to hedge against changes in interest rates, securities prices, currency exchange rates, or to seek to increase total return. Futures contracts are valued at the last settlement price, or in the absence of a sale, the last bid price, at the end of each day on the board of trade or exchange upon which they are traded. Upon entering into a futures contract, the Funds deposit cash or securities in an account on behalf of the broker in an amount sufficient to meet the initial margin requirement. Subsequent payments are made or received by the Funds equal to the daily change in the contract value and are recorded as variation margin receivable or payable and offset in unrealized gains or losses. The Funds recognize a realized gain or loss when a contract is closed or expires.

The use of futures contracts involves, to varying degrees, elements of market and counterparty risk which may exceed the amounts recognized in the Statements of Assets and Liabilities. Futures contracts may be illiquid, and exchanges may limit fluctuations in futures contract prices during a single day. Changes in the value of a futures contract may not directly correlate with changes in the value of the underlying securities. These risks may decrease the effectiveness of the Funds’ strategies and potentially result in a loss. For futures contracts, the Funds segregate sufficient cash and/or securities to cover any commitments under these contracts.

F. Mortgage and Asset-Backed Securities — The Funds may invest in mortgage and/or asset-backed securities. Mortgage-backed securities represent direct or indirect participations in, or are collateralized by and payable from, mortgage loans secured by real property. These securities may include mortgage pass-through securities, collateralized mortgage obligations, Real Estate Mortgage Investment Conduit pass-through or participation certificates, and stripped mortgage-backed securities. Asset-backed securities include securities whose principal and interest payments are collateralized by pools of assets such as auto loans, credit card receivables, leases, installment contracts and personal property. Asset-backed securities also include home equity line of credit loans and other second-lien mortgages.

The value of some mortgage- and asset-backed securities may be particularly sensitive to changes in prevailing interest rates. The value of these securities may also fluctuate in response to the market’s perception of the creditworthiness of the issuers. Early repayment of principal on mortgage- or asset-backed securities may expose a Fund to the risk of earning a lower rate of return upon reinvestment of principal. Asset-backed securities may present credit risks that are not presented by mortgage-backed securities because they generally do not have the benefit of a security interest in collateral that is comparable to mortgage assets. Some asset-backed securities may only have a subordinated claim on collateral. In addition, while mortgage- and asset-backed securities may be supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers, if any, will meet their obligations.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Stripped mortgage-backed securities are usually structured with two different classes: one that receives substantially all of the interest payments (the interest-only, or “IO” and/or the high coupon rate with relatively low principal amount, or “IOette”), and the other that receives substantially all of the principal payments (the principal-only, or “PO”) from a pool of mortgage loans. Little to no principal will be received at the maturity of an IO; as a result, adjustments are made to the cost of the security on a daily basis until maturity. These adjustments are included in interest income. Payments received for PO’s, typically monthly, are treated as a proportionate reduction to the reduction in par of the cost basis of the securities and excess amounts are recorded as gains. All gains and losses resulting from principal payments are classified as interest income in the accompanying Statement of Operations.

G. Mortgage Dollar Rolls — The Funds may enter into mortgage “dollar rolls” in which the Funds sell securities in the current month for delivery and simultaneously contracts with the same counterparty to repurchase similar (same type, coupon and maturity) but not identical securities on a specified future date. The Funds treat mortgage dollar rolls as two separate transactions; one involving the purchase of a security and a separate transaction involving a sale.

During the settlement period between sale and repurchase, the Funds will not be entitled to accrued interest and principal payments on the securities sold. Dollar roll transactions involve the risk that the market value of the securities sold by the Funds may decline below the repurchase price of those securities. In the event the buyer of the securities under a dollar roll transaction files for bankruptcy or becomes insolvent, the Funds’ use of proceeds of the transaction may be restricted pending a determination by, or with respect to, the other party.

H. Repurchase Agreements — The Funds may enter into 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 Funds, 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 Funds may be delayed or limited and there may be a decline in the value of the collateral during the period while the Funds seek to assert their rights. The underlying securities for all repurchase agreements are held in safekeeping at the Funds’ custodian or designated subcustodians under triparty repurchase agreements.

Pursuant to exemptive relief granted by the Securities and Exchange Commission (“SEC”) and terms and conditions contained therein, the Funds, 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 Funds’ credit exposure is allocated to the underlying repurchase counterparties on a pro-rata basis. With the exception of certain transaction fees, the Funds are not subject to any expenses in relation to these investments.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2008 (Unaudited)


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

I. Swap Contracts — The Funds may enter into swap transactions for hedging purposes or to seek to increase total return. Swap transactions are privately negotiated agreements between a Fund and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. The Funds may be required to post collateral under the terms of a swap contract. Risks may arise as a result of the failure of the counterparty to the swap contract to comply with the terms of the swap contract. The loss incurred by the failure of a counterparty is generally limited to the net payment to be received by the Funds, and/or the termination value at the end of the contract. Therefore, the Funds consider the creditworthiness of each counterparty to a contract in evaluating potential credit risk. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying reference asset or index. Entering into these agreements involves, to varying degrees, market, liquidity, elements of credit, legal and documentation risk in excess of amounts recognized in the Statements of Assets and Liabilities. When entering into swap contracts, a Fund must set aside liquid assets or engage in other appropriate measures to cover its obligations under the swap contract. The Funds may invest in the following types of swaps:

A credit default swap agreement involves one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party, typically a corporate issuer or an issuer within an index on its obligation. A Fund may use credit default swaps to provide a measure of protection against defaults of a corporate issuer or to take an active long or short position with respect to the likelihood of a particular issuer’s default. If the Fund enters into a buy contract and no credit event occurs, its exposure is limited to the periodic payments previously made to the counterparty. If a credit event occurs, the seller of protection may be required to pay the Fund the notional value of the credit default swap on the specified reference obligation. As a seller of protection, a Fund generally receives an upfront payment or a fixed rate of income throughout the term of the swap provided that there is no credit event. If the Fund enters into a sale contract and a credit event occurs, in addition to the credit exposure the Fund has on the other assets held in its portfolio, the value of the reference obligation received by the Fund reduced by the periodic payments previously received may be less than the maximum payout amount the Fund pays to the counterparty, resulting in a loss to the Fund. Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly.

An interest rate swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices, rates or indices for a specified amount of an underlying asset or notional principal amount. The payment flows are usually netted against each other, with the difference being paid by one party to the other.

Swaps are marked-to-market daily using either pricing vendor quotations, counterparty prices or model prices and the change in value, if any, is recorded as unrealized gain or loss. Upfront payments made and/or received by the Funds are recorded as an asset and/or liability on the Statements of Assets and Liabilities and are recorded as a realized gain or loss ratably over the contract’s term/event with the exception of forward starting interest rate swaps, which are recorded as a realized gain or loss ratably beginning on the effective start date. Periodic payments received or made on swap contracts are recorded as a realized gain or loss on the Statements of Operations. Gains or losses are also realized upon early termination of the swap agreements or, with respect to credit default swaps, when a credit event occurs and recorded as realized gains from swaps on the Statements of Operations.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

J. Treasury Inflation-Protected Securities — The Funds may invest in Treasury Inflation-Protected Securities (“TIPS”), specially structured bonds in which the principal amount is adjusted daily to keep pace with inflation, as measured by the U.S. Consumer Pricing Index for Urban Consumers (“CPIU”). The adjustments to principal due to inflation are reflected as increases or decreases to interest income. Such adjustments may have a significant impact on the Fund’s distributions. The repayment of the original bond principal upon maturity is guaranteed by the full faith and credit of the U.S. Government.

K. When-Issued Securities and Forward Commitments — The Funds may purchase when-issued securities, including TBA (To Be Announced) securities and enter into contracts to purchase or sell securities for a fixed price at a future date beyond the customary settlement period. When-issued securities are securities that have been authorized, but not yet issued in the market. When-issued securities are purchased in order to secure what is considered to be an advantageous price and yield to the Funds at the time of entering into the transaction. A forward commitment involves the entering into a contract to purchase or sell securities for a fixed price at a future date beyond the customary settlement period. The purchase of securities on a when-issued or forward commitment basis involves a risk of loss if the value of the security to be purchased declines before the settlement date. Conversely, the sale of securities on a forward commitment basis involves the risk that the value of the securities sold may increase before the settlement date. Although the Funds will generally purchase securities on a when-issued or forward commitment basis with the intention of acquiring the securities for their portfolios, the Funds may dispose of when-issued securities or forward commitments prior to settlement if GSAM deems it appropriate. When purchasing a security on a when-issued basis or entering into a forward commitment, the Funds must set aside liquid assets, or engage in other appropriate measures to cover their obligations.

3. AGREEMENTS

A. Management Agreement — Under the Agreement, GSAM manages the Funds, subject to the general supervision of the Board of Trustees.

As compensation for the services rendered pursuant to the Agreement, the assumption of the expenses related thereto and administering the Funds’ business affairs, including providing facilities, GSAM is entitled to a fee (“Management fee”) computed daily and payable monthly, equal to an annual percentage rate of each Fund’s average daily net assets.

For the six months ended September 30, 2008, GSAM received a Management fee on a contractual basis at the following rates:


	Contractual Management Rate
	Up to			Next			Next			Next			Over			Effective			Management Rate
Fund	$1 billion			$1 billion			$3 billion			$3 billion			$8 billion			Rate			(after waivers)

Enhanced Income		0.25	%		0.23	%		0.22	%		0.22	%		0.22	%		0.25	%		0.20	%*


Government Income		0.54			0.49			0.47			0.46			0.45			0.54			0.54


Inflation Protected Securities		0.33			0.30			0.28			0.27			0.26			0.33			0.25	*


Short Duration Government		0.50			0.45			0.43			0.42			0.41			0.49			0.49


Ultra-Short Duration Government		0.40			0.36			0.34			0.33			0.32			0.40			0.40


		Effective July 1, 2008, GSAM implemented these additional asset level breakpoints to its contractual Management rate.

*		GSAM voluntarily agreed to waive a portion of its Management fee in order to achieve an effective fee of 0.20% and 0.25% as an annual percentage rate of average daily net assets for the Enhanced Income and Inflation Protected Securities Funds, respectively, for the six months ended September 30, 2008.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2008 (Unaudited)


3. AGREEMENTS (continued)

B. Distribution Agreement and Service Plans — The Trust, on behalf of each Fund, has adopted Distribution and Service Plans (the “Plans”). Under the Plans, Goldman Sachs and/or authorized dealers are entitled to a monthly fee for distribution services equal to, on an annual basis, 0.25%, 0.75%, 0.75% and 0.50% of each Fund’s average daily net assets attributable to Class A, Class B, Class C and Class R Shares, respectively. Additionally, Goldman Sachs and/or authorized dealers are entitled to receive, under the Plans, a separate fee for personal and account maintenance services equal to, on an annual basis, 0.25% of each Fund’s average daily net assets attributable to Class B and Class C Shares. With respect to Class A and Class R Shares, the Distributor at its discretion may use compensation for distribution services paid under the Plans to compensate service organizations for personal and account maintenance services and expenses so long as such total compensation under the Plans does not exceed the maximum cap on “service fees” imposed by the Financial Industry Regulatory Authority. For the six months ended September 30, 2008, Goldman Sachs has voluntarily agreed to waive a portion of the Distribution and Service fees equal to 0.15% of the average daily net assets attributable to the Class B Shares of Short Duration Government.

Goldman Sachs may retain a portion of the Class A sales load and Class B and Class C contingent deferred sales charges. During the six months ended September 30, 2008, Goldman Sachs advised the Funds that it retained the following approximate amounts:


	Front End		Contingent Deferred
	Sales Load		Sales Charge
Fund	Class A		Class B		Class C

Enhanced Income	$	700	$	—		N/A


Government Income		18,900		100		—


Inflation Protected Securities		18,500		N/A		—


Short Duration Government		13,600		—		—


Ultra-Short Duration Government		2,500		N/A		N/A

C. Transfer Agency Agreement — Goldman Sachs also serves as the Transfer Agent of the Funds for a fee pursuant to a Transfer Agency Agreement. The fees charged for such transfer agency services are calculated daily and payable monthly at an annual rate as follows: 0.13% of the average daily net asset value for Class A, Class B, Class C, Class IR and Class R Shares and 0.04% of the average daily net assets for Institutional, Administration and Service Shares.

D. Service Plan and Shareholder Administration Plans — The Trust, on behalf of the Government Income, Short Duration Government and Ultra-Short Duration Government, has adopted a Service Plan and a Shareholder Administration Plan for the Service Shares. In addition, the Trust on behalf of Enhanced Income, has adopted an Administration Plan for Administration Shares. These plans allow for Service and Administration Shares to compensate service organizations for providing varying levels of personal and account administration and shareholder administration services to their customers who each are beneficial owners of such shares. The Service Plan, Shareholder Administration Plan and Administration Plan each provide for compensation to the service organizations in an amount equal to, on an annual basis, 0.25% of the average daily net assets of the Service and Administration Shares.

E. Other Agreements — GSAM has voluntarily agreed to limit certain “Other Expenses” (excluding Management fees, Distribution and Service fees, Transfer agent fees and expenses, Service Share fees, taxes, interest, brokerage fees and litigation, indemnification, shareholder meeting and other extraordinary expenses exclusive of any custody and transfer agent fee credit reductions) to the extent that such expenses exceed, on an annual basis, a percentage rate of the average daily net assets of each Fund. Such expense reimbursements, if any, are computed daily and paid monthly. In addition, the Funds are not obligated to reimburse GSAM for prior fiscal year expense reimbursements, if any. The Other Expense limitations for the Enhanced Income, Government Income, Inflation Protected Securities, Short Duration Government and Ultra-Short

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


3. AGREEMENTS (continued)

Duration Government as an annual percentage rate of average daily net assets were 0.014%, 0.004%, 0.044%, 0.004% and 0.054%, respectively.

In addition, the Funds have entered into certain offset arrangements with the custodian and transfer agent resulting in a reduction of the Funds’ expense. For the six months ended September 30, 2008, these expense reductions, including any waivers and expense reimbursements, were as follows (in thousands):


	Fee Waivers
			Class B		Other		Expense Credits				Total
	Management		Distribution and		Expense		Custody		Transfer Agent		Expense
Fund	Fees		Service Fees		Reimbursement		Fee		Fee		Reductions

Enhanced Income	$	68		N/A	$	205	$	9	$	1	$	283


Government Income		—	$	—		246		56		4		306


Inflation Protected Securities		25		N/A		274		1		—		300


Short Duration Government		—		5		306		36		2		349


Ultra-Short Duration Government		—		N/A		81		43		1		125

As of September 30, 2008, the amounts owed to affiliates of the Funds were as follows (in thousands):


			Distribution
	Management		and Service		Transfer
Fund	Fees		Fees		Agent Fees		Total

Enhanced Income	$	45	$	11	$	12	$	68


Government Income		423		167		74		664


Inflation Protected Securities		20		16		7		43


Short Duration Government		535		133		80		748


Ultra-Short Duration Government		143		25		23		191

4. FAIR VALUE OF INVESTMENTS

For the period ended September 30, 2008, the Funds adopted FASB Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”). FAS 157 establishes fair value hierarchy that prioritizes the inputs to 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 (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.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2008 (Unaudited)


4. FAIR VALUE OF INVESTMENTS (continued)

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 Funds invest:


	Enhanced Income									Government Income
	Investments in		Investments in							Investments in		Investments in
	Securities		Securities		Derivatives-		Derivatives-			Securities		Securities			Derivatives-		Derivatives-
Level	Long-Assets		Short-Liabilities		Assets		Liabilities			Long-Assets		Short-Liabilities			Assets		Liabilities

Level 1	$	147,561,520	$	—	$	322,934	$	(153,807	)	$	93,964,438	$	—		$	666,225	$	(832,265	)
Level 2		192,617,261		—		—		(227,285	)		963,713,088		(37,608,767	)		5,791,123		(4,666,211	)
Level 3		—		—		—		—			—		—			—		—


Total	$	340,178,781	$	—	$	322,934	$	(381,092	)	$	1,057,677,526	$	(37,608,767	)	$	6,457,348	$	(5,498,476	)


	Inflation Protected Securities									Short Duration Government
	Investments in		Investments in							Investments in		Investments in
	Securities		Securities		Derivatives-		Derivatives-			Securities		Securities			Derivatives-		Derivatives-
Level	Long-Assets		Short-Liabilities		Assets		Liabilities			Long-Assets		Short-Liabilities			Assets		Liabilities

Level 1	$	120,961,784	$	—	$	446	$	(22,686	)	$	295,518,953	$	—		$	5,943,768	$	—
Level 2		1,000,000		—		31,788		(53,055	)		1,310,262,836		(382,709,232	)		985,238		(2,211,945	)
Level 3		—		—		—		—			—		—			—		—


Total	$	121,961,784	$	—	$	32,234	$	(75,741	)	$	1,605,781,789	$	(382,709,232	)	$	6,929,006	$	(2,211,945	)


	Ultra-Short Duration Government
	Investments in		Investments in
	Securities		Securities			Derivatives-		Derivatives-
Level	Long-Assets		Short-Liabilities			Assets		Liabilities

Level 1	$	107,758,281	$	—		$	737,478	$	(876,806	)
Level 2		387,430,612		(19,849,071	)		691,464		(1,423,175	)
Level 3		—		—			—		—


Total	$	495,188,893	$	(19,849,071	)	$	1,428,942	$	(2,299,981	)

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

5. PORTFOLIO SECURITIES TRANSACTIONS

The cost of purchases and proceeds from sales and maturities of long-term securities for the six months ended September 30, 2008, were as follows:


					Sales and		Sales and
	Purchases of		Purchases (Excluding		Maturities of		Maturities (Excluding
	U.S. Government and		U.S. Government and		U.S. Government and		U.S. Government and
Fund	Agency Obligations		Agency Obligations)		Agency Obligations		Agency Obligations)

Enhanced Income	$	142,720,249	$	21,081,527	$	35,756,050	$	32,158,007


Government Income		953,559,841		27,910,000		753,562,559		67,832,605


Inflation Protected Securities		80,252,032		1,325,000		13,947,402		1,725,000


Short Duration Government		862,778,264		—		352,430,374		—


Ultra-Short Duration Government		223,801,674		70,278,675		148,223,092		77,166,020

For the six months ended September 30, 2008, Goldman Sachs earned approximately $11,200, $56,100, $800, $82,300 and $23,700 of brokerage commissions from portfolio transactions, including futures transactions executed with Goldman Sachs as the Futures Commission Merchant, on behalf of Enhanced Income, Government Income, Inflation Protected Securities, Short Duration Government and Ultra-Short Duration Government Funds, respectively.

6. SECURITIES LENDING

The Funds may lend their securities through an agreement with their custodian, State Street Bank and Trust Company (“SSB”). In accordance with the Funds’ security lending procedures, the loans are collateralized at all times with cash and/or securities with a market value at least equal to the securities on loan. The market value of the loaned securities is determined at the close of business of the Funds, in accordance with the Funds’ valuation policies or, if applicable, by the valuation procedures established by the Board of Trustees, and any additional required collateral is delivered to the Funds on the next business day. As with other extensions of credit, the Funds bear the risk of delay on recovery or loss of rights in the collateral should the borrower of the securities fail financially.

The Funds invest the cash collateral received in connection with securities lending transactions in the State Street Navigator Securities Lending Prime Portfolio (the “Portfolio”). The Portfolio is a private, registered money market fund and is managed by State Street Global Advisors (“SSgA”). The Portfolio has been established primarily for the investment of cash collateral on behalf of funds participating in SSB’s securities lending program and complies with the requirements of Rule 2a-7 of the 1940 Act. The Funds bear the risk of incurring a loss from the investment of cash collateral due to either credit or market factors. Both the Funds and SSB receive compensation relating to the lending of the Funds’ securities. The amounts earned by the Funds for the six months ended September 30, 2008, are reported parenthetically under Investment Income on the Statements of Operations. Effective October 2, 2008, the Funds suspended this program but may resume lending securities in the future.

7. LINE OF CREDIT FACILITY

The Funds 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 a management agreement 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 committed facility also requires a fee to be paid by the Funds based on the amount of the commitment that has not been utilized. For the six months ended September 30, 2008, the Funds did not have any borrowings under the facility. Prior to May 13, 2008, the amount of the facility was $450,000,000.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2008 (Unaudited)

8. TAX INFORMATION

As of the most recent fiscal year end March 31, 2008, the Funds’ capital loss carryforwards and certain timing differences on a tax basis were as follows. Expiration occurs on March 31 of the year indicated.


							Inflation						Ultra-Short
	Enhanced			Government			Protected			Short Duration			Duration
	Income			Income			Securities			Government			Government

Capital loss carryforward¹
Expiring 2009	$	(7,623,028	)	$	—		$	—		$	—		$	—
Expiring 2010		(65,331,932	)		—			—			—			(54,428,662	)
Expiring 2011		—			—			—			—			(55,920,321	)
Expiring 2012		(7,658,641	)		—			—			—			(24,528,394	)
Expiring 2013		(352,397	)		—			—			—			(7,818,636	)
Expiring 2014		(320,682	)		—			—			(1,514,348	)		(2,842,873	)
Expiring 2015		(987,433	)		—			—			—			(4,261,952	)
Expiring 2016		(2,472,185	)		—			—			—			—


Total capital loss carryforward	$	(84,746,298	)	$	—		$	—		$	(1,514,348	)	$	(149,800,838	)


Timing differences (income distribution payable, swap income receivable, straddles)	$	(75,848	)	$	(1,477,137	)	$	(77,053	)	$	(977,482	)	$	(188,292	)

¹ Expiration occurs on March 31 of the year indicated.

As of September 30, 2008, the Funds’ aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes was as follows:


							Inflation						Ultra-Short
	Enhanced			Government			Protected			Short Duration			Duration
	Income			Income			Securities			Government			Government

Tax Cost	$	343,064,165		$	1,080,455,368		$	127,594,083		$	1,605,872,601		$	507,160,770


Gross unrealized gain		366,190			9,153,154			—			6,711,675			2,412,414
Gross unrealized loss		(3,251,574	)		(31,930,996	)		(5,632,299	)		(6,802,487	)		(14,384,291	)


Net unrealized security loss	$	(2,885,384	)	$	(22,777,842	)	$	(5,632,299	)	$	(90,812	)	$	(11,971,877	)

The difference between book-basis and tax-basis unrealized gains (losses) is attributable primarily to wash sales, differences related to the tax treatment of non-periodic swap payments, amortization of swaps, market discount accretion and premium amortization and mark-to-market gain (losses) on regulated future contracts as of the most recent fiscal year end.

9. OTHER RISKS

Funds’ Shareholder Concentration — Certain Goldman Sachs Fund of Fund Portfolios may invest a significant percentage of its assets in the Funds. In the event the Fund of Funds Portfolios experience significant redemptions and/or reallocations, the Funds may be exposed to liquidity risk. In particular, the Fund may encounter difficulty meeting redemptions if unusual market conditions create an unfavorable environment in which the Fund is forced to liquidate its securities. The Goldman Sachs Balanced Strategy Portfolio was a beneficial owner of approximately 18% (as a percentage of outstanding shares) of the Short Duration Government Fund as of September 30, 2008.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


9. OTHER RISKS (continued)

Indemnifications — Under the Trust’s organizational documents, its Board of 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 Funds. Additionally, in the course of business, the Funds enter into contracts that contain a variety of indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown; as this would involve future claims that may be against the Funds that have not yet occurred. However, the Funds believe the risk of loss under these arrangements to be remote.

Market and Credit Risk — In the normal course of business the Funds trade financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the contracting party to the transaction to perform (credit risk). The Funds may be exposed to additional credit risk that an institution or other entity with which the Funds have unsettled or open transactions will default.

10. OTHER MATTERS

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 reorganization of the AXA Enterprise Short Duration Bond Fund by the Enhanced Income Fund. The reorganization was completed on June 25, 2007, as of the close of business on June 22, 2007.

Pursuant to the Reorganization Agreement, the assets and liabilities of the AXA Enterprise Short Duration Bond Fund’s (“Acquired Fund”) Class A, Class C, Class B, and Class Y were transferred into the Enhanced Income Fund’s (“Survivor Fund”) Class A, Class A, Class B and Institutional Class, respectively, in a tax-free exchange as follows:


	Exchanged Shares				Acquired Fund’s
	of Survivor		Value of		Shares Outstanding
Survivor/Acquired Fund	Issued		Exchanged Shares		as of June 22, 2007

Enhanced Income Class A/
AXA Enterprise Short Duration Bond Class A		1,504,220	$	14,651,159		1,499,156
AXA Enterprise Short Duration Bond Class C		408,696		3,979,698		408,097


Enhanced Income Class B/
AXA Enterprise Short Duration Bond Class B		577,740		5,628,639		577,041


Enhanced Income Institutional Class/
AXA Enterprise Short Duration Bond Class Y		2,570,257		24,982,914		2,556,947

The following chart shows the Survivor Fund’s and Acquired Fund’s aggregate net assets (immediately before and after the completion of the reorganization) and the Acquired Fund’s unrealized depreciation and capital loss carryforwards. Utilization of the Acquired Fund’s capital loss carryforward may be substantially limited under the Code.

Survivor Fund’s

Acquired Fund’s

Survivor Fund’s

Aggregate Net

Acquired Fund’s

Assets before

Assets Immediately

Unrealized

Capital Loss

Survivor/Acquired Fund

reorganization

after reorganization

Depreciation

Carryforward

Enhanced Income/AXA Enterprise
Short Duration Bond

238,263,199

49,242,410

287,505,609

(361,022

)

(733,435

)

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 reorganization of the AXA Enterprise Government Securities Fund by the Government Income Fund. The reorganization was completed on June 25, 2007, as of the close of business on June 22, 2007.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2008 (Unaudited)


10. OTHER MATTERS (continued)

Pursuant to the Agreement, the assets and liabilities of the AXA Enterprise Government Securities Fund’s (“Acquired Fund”) Class A, Class B, Class C and Class Y were transferred into the Government Income Fund’s (“Survivor Fund”) Class A, Class B, Class C and Institutional Class, respectively, in a tax-free exchange as follows:


	Exchanged Shares				Acquired Fund’s
	of Survivor		Value of		Shares Outstanding
Survivor/Acquired Fund	Issued		Exchanged Shares		as of June 22, 2007

Government Income Class A/
AXA Enterprise Government Securities Class A		6,461,281	$	93,107,147		7,706,071


Government Income Class B/
AXA Enterprise Government Securities Class B		2,505,840		36,109,241		2,994,225


Government Income Class C/
AXA Enterprise Government Securities Class C		721,863		10,394,862		861,769


Government Income Institutional Class/
AXA Enterprise Government Securities Class Y		3,603,605		51,855,997		4,300,003

Survivor Fund’s

Acquired Fund’s

Survivor Fund’s

Aggregate Net

Acquired Fund’s

Assets before

Assets Immediately

Unrealized

Capital Loss

Survivor/Acquired Fund

reorganization

after reorganization

Carryforward

Government Income/AXA Enterprise
Government Securities

579,397,205

191,467,247

770,864,452

(5,226,858

)

(1,329,091

)

New Accounting Pronouncements — In March 2008, the FASB issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“FAS 161”). FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. FAS 161 requires enhanced disclosures about the Funds’ derivative and hedging activities. Management is currently evaluating the impact the adoption of FAS 161 will have on the Funds’ financial statement disclosures.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


10. OTHER MATTERS (continued)

11. SUMMARY OF SHARE TRANSACTIONS

Share activity is as follows:


	Enhanced Income Fund

	For the Six Months Ended
	September 30, 2008						For the Period November 1, 2007						For the Year Ended
	(Unaudited)						to March 31, 2008*						October 31, 2007

	Shares			Dollars			Shares			Dollars			Shares			Dollars

Class A Shares
Shares sold		1,337,513		$	12,842,502			1,296,262		$	12,584,569			555,929		$	5,406,587
Shares issued in connection with merger		—			—			—			—			1,912,916			18,630,857
Reinvestment of distributions		66,142			634,779			58,883			571,024			140,654			1,367,469
Shares converted from Class B^(a)		17,891			171,814			5,318			51,534			2,551			24,718
Shares redeemed		(1,554,785	)		(14,912,026	)		(1,361,869	)		(13,212,169	)		(2,177,051	)		(21,174,912	)


		(133,239	)		(1,262,931	)		(1,406	)		(5,042	)		434,999			4,254,719


Class B Shares^(b)
Shares sold		11,075			106,379			17,196			166,458			10,492			101,979
Shares issued in connection with merger		—			—			—			—			577,740			5,628,639
Reinvestment of distributions		4,371			41,893			5,033			48,734			6,108			59,256
Shares converted to Class A^(a)		(17,910	)		(171,814	)		(5,326	)		(51,534	)		(2,553	)		(24,718	)
Shares redeemed		(59,023	)		(565,376	)		(193,280	)		(1,874,334	)		(52,671	)		(511,081	)


		(61,487	)		(588,918	)		(176,377	)		(1,710,676	)		539,116			5,254,075


Institutional Shares
Shares sold		5,493,253			52,842,229			3,492,898			33,812,778			27,728,678			269,330,701
Shares issued in connection with merger		—			—			—			—			2,570,257			24,982,914
Reinvestment of distributions		445,068			4,265,630			418,551			4,054,222			795,383			7,723,427
Shares redeemed		(5,848,567	)		(56,255,249	)		(4,607,973	)		(44,623,637	)		(24,600,060	)		(238,973,405	)


		89,754			852,610			(696,524	)		(6,756,637	)		6,494,258			63,063,637


Administration Shares
Shares sold		20,368			194,987			970			9,432			4,808			46,800
Reinvestment of distributions		397			3,823			395			3,832			2,935			28,516
Shares redeemed		(19,749	)		(188,699	)		(34	)		(334	)		(156,950	)		(1,524,058	)


		1,016			10,111			1,331			12,930			(149,207	)		(1,448,742	)


NET INCREASE (DECREASE)		(103,956	)	$	(989,128	)		(872,976	)	$	(8,459,425	)		7,319,166		$	71,123,689


*		The Fund changed its fiscal year end from October 31 to March 31.


(a)		Class B Shares automatically convert into Class A Shares 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 Fund or another Goldman Sachs Fund.


(b)		Commenced operations on November 30, 2007.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2008 (Unaudited)

11. SUMMARY OF SHARE TRANSACTIONS (continued)

Share activity is as follows:


	Government Income Fund

	For the Six Months Ended
	September 30, 2008						For the Period November 1, 2007						For the Year Ended
	(Unaudited)						to March 31, 2008*						October 31, 2007

	Shares			Dollars			Shares			Dollars			Shares			Dollars

Class A Shares
Shares sold		8,446,642		$	125,681,080			9,583,017		$	144,809,165			11,100,966		$	162,432,495
Shares issued in connection with merger		—			—			—			—			6,461,281			93,107,147
Reinvestment of distributions		518,751			7,691,135			434,854			6,568,518			907,084			13,282,650
Shares converted from Class B^(a)		152,218			2,261,135			149,146			2,253,233			169,233			2,476,331
Shares redeemed		(8,272,919	)		(123,229,023	)		(5,590,153	)		(84,097,663	)		(18,784,433	)		(274,422,464	)


		844,692			12,404,327			4,576,864			69,533,253			(145,869	)		(3,123,841	)


Class B Shares
Shares sold		518,856			7,715,835			562,124			8,509,326			346,259			5,066,836
Shares issued in connection with merger		—			—			—			—			2,505,840			36,109,241
Reinvestment of distributions		39,137			580,437			37,289			563,144			50,897			745,608
Shares converted to Class A^(a)		(152,218	)		(2,261,135	)		(149,146	)		(2,253,233	)		(169,170	)		(2,476,331	)
Shares redeemed		(604,668	)		(8,987,839	)		(468,170	)		(7,055,782	)		(671,903	)		(9,819,541	)


		(198,893	)		(2,952,702	)		(17,903	)		(236,545	)		2,061,923			29,625,813


Class C Shares
Shares sold		659,403			9,797,115			823,707			12,445,055			421,417			6,171,113
Shares issued in connection with merger		—			—			—			—			721,863			10,394,862
Reinvestment of distributions		20,474			303,419			16,718			252,347			27,700			405,555
Shares redeemed		(552,531	)		(8,199,814	)		(342,276	)		(5,158,316	)		(834,233	)		(12,213,059	)


		127,346			1,900,720			498,149			7,539,086			336,747			4,758,471


Institutional Shares
Shares sold		7,028,942			104,441,930			7,104,486			107,469,890			20,699,664			302,101,078
Shares issued in connection with merger		—			—			—			—			3,603,605			51,855,997
Reinvestment of distributions		267,515			3,960,061			275,300			4,152,451			514,165			7,520,966
Shares redeemed		(7,412,033	)		(110,098,990	)		(9,348,221	)		(140,182,036	)		(12,930,210	)		(188,808,003	)


		(115,576	)		(1,696,999	)		(1,968,435	)		(28,559,695	)		11,887,224			172,670,038


Service Shares
Shares sold		1,911,297			28,333,060			1,988,321			29,696,048			2,751,222			40,135,007
Reinvestment of distributions		41,137			607,982			30,663			462,123			38,309			560,040
Shares redeemed		(871,371	)		(12,964,020	)		(1,126,013	)		(16,929,633	)		(1,335,251	)		(19,510,233	)


		1,081,063			15,977,022			892,971			13,501,538			1,454,280			21,184,814


Class IR Shares^(b)
Shares sold		—			—			666			10,000			—			—
Reinvestment of distributions		14			205			9			146			—			—


		14			205			675			10,146			—			—


Class R Shares^(b)
Shares sold		—			—			666			10,000			—			—
Reinvestment of distributions		12			185			9			132			—			—


		12			185			675			10,132			—			—


NET INCREASE (DECREASE)		1,738,658		$	25,632,758			3,982,996		$	61,797,915			15,594,305		$	225,115,295


*		The Fund changed its fiscal year end from October 31 to March 31.


(a)		Class B Shares automatically convert into Class A Shares 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 Fund or another Goldman Sachs Fund.


(b)		Commenced operations on November 30, 2007.


(c)		Commenced operations on August 31, 2007.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


Inflation Protected Securities Fund^(c)

	For the Six Months Ended
	September 30, 2008						For the Period ended
	(Unaudited)						March 31, 2008

	Shares			Dollars			Shares			Dollars


		3,773,204		$	41,332,630			1,827,532		$	19,883,439
		—			—			—			—
		28,741			307,038			3,856			42,541
		—			—			—			—
		(1,078,144	)		(11,667,787	)		(11,235	)		(123,150	)


		2,723,801			29,971,881			1,820,153			19,802,830



		—			—			—			—
		—			—			—			—
		—			—			—			—
		—			—			—			—
		—			—			—			—


		—			—			—			—



		665,700			7,285,844			279,856			3,101,422
		—			—			—			—
		2,718			28,903			169			1,858
		(226,436	)		(2,470,816	)		(7,224	)		(80,254	)


		441,982			4,843,931			272,801			3,023,026



		3,124,701			34,495,642			1,081,186			11,017,722
		—			—			—			—
		24,479			262,262			12,842			136,677
		(706,171	)		(7,805,252	)		(34,568	)		(363,865	)


		2,443,009			26,952,652			1,059,460			10,790,534



		—			—			—			—
		—			—			—			—
		—			—			—			—


		—			—			—			—



		—			—			947			10,000
		9			106			9			93


		9			106			956			10,093



		—			—			947			10,000
		8			80			7			77


		8			80			954			10,077


		5,608,809		$	61,768,650			3,154,324		$	33,636,560

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2008 (Unaudited)

11. SUMMARY OF SHARE TRANSACTIONS (continued)

Share activity is as follows:


	Short Duration Government Fund

	For the Six Months Ended
	September 30, 2008						For the Period November 1, 2007						For the Year Ended
	(Unaudited)						to March 31, 2008*						October 31, 2007

	Shares			Dollars			Shares			Dollars			Shares			Dollars

Class A Shares
Shares sold		27,563,263		$	277,471,574			15,013,862		$	150,628,759			15,820,287		$	153,624,662
Reinvestment of distributions		625,185			6,279,954			502,136			5,043,447			980,967			9,526,790
Shares converted from Class B^(a)		23,933			240,422			49,671			498,052			32,837			318,613
Shares redeemed		(20,128,940	)		(201,831,950	)		(7,659,190	)		(76,806,669	)		(19,403,622	)		(188,008,832	)


		8,083,441			82,160,000			7,906,479			79,363,589			(2,569,531	)		(24,538,767	)


Class B Shares
Shares sold		499			5,274			3,914			39,255			2,115			20,485
Reinvestment of distributions		8,174			81,806			8,847			88,408			29,630			286,693
Shares converted to Class A^(a)		(24,029	)		(240,422	)		(49,821	)		(498,052	)		(32,939	)		(318,613	)
Shares redeemed		(118,073	)		(1,183,194	)		(122,338	)		(1,218,573	)		(547,812	)		(5,295,058	)


		(133,429	)		(1,336,536	)		(159,398	)		(1,588,962	)		(549,006	)		(5,306,493	)


Class C Shares
Shares sold		2,281,194			22,852,562			1,333,454			13,336,150			588,093			5,679,697
Reinvestment of distributions		40,134			400,625			29,328			292,658			71,934			694,288
Shares redeemed		(977,427	)		(9,767,602	)		(372,357	)		(3,705,645	)		(1,923,977	)		(18,529,825	)


		1,343,901			13,485,585			990,425			9,923,163			(1,263,950	)		(12,155,840	)


Institutional Shares
Shares sold		21,014,735			210,698,968			23,027,209			231,155,971			42,316,647			410,055,923
Reinvestment of distributions		1,261,471			12,629,802			973,802			9,742,989			1,847,941			17,902,846
Shares redeemed		(27,255,340	)		(272,918,045	)		(13,173,110	)		(130,483,092	)		(28,183,533	)		(272,510,207	)


		(4,979,134	)		(49,589,275	)		10,827,901			110,415,868			15,981,055			155,448,562


Service Shares
Shares sold		10,507,588			104,498,470			162,248			1,613,308			337,495			3,261,469
Reinvestment of distributions		91,802			919,238			8,925			89,167			23,362			225,965
Shares redeemed		(658,150	)		(6,587,577	)		(170,755	)		(1,707,074	)		(791,114	)		(7,637,612	)


		9,941,240			98,830,131			418			(4,599	)		(430,257	)		(4,150,178	)


Class IR Shares^(b)
Shares sold		—			—			1,009			10,000			—			—
Reinvestment of distributions		19			198			14			134			—			—


		19			198			1,023			10,134			—			—


NET INCREASE (DECREASE)		14,256,038		$	143,550,103			19,566,848		$	198,119,193			11,168,311		$	109,297,284


*		The Fund changed its fiscal year end from October 31 to March 31.
(a)		Class B Shares automatically convert into Class A Shares 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 Fund or another Goldman Sachs Fund.
(b)		Commenced operations on November 30, 2007.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


Ultra-Short Duration Government Fund

	For the Six Months Ended
	September 30, 2008						For the Period November 1, 2007						For the Year Ended
	(Unaudited)						to March 31, 2008*						October 31, 2007

	Shares			Dollars			Shares			Dollars			Shares			Dollars


		7,632,767		$	69,647,316			1,804,566		$	16,707,769			4,105,876		$	38,134,998
		204,975			1,863,038			157,794			1,459,701			444,257			4,126,663
		—			—			—			—			—			—
		(4,897,927	)		(44,578,316	)		(3,563,189	)		(33,017,558	)		(6,261,470	)		(58,152,489	)


		2,939,815			26,932,038			(1,600,829	)		(14,850,088	)		(1,711,337	)		(15,890,828	)



		—			—			—			—			—			—
		—			—			—			—			—			—
		—			—			—			—			—			—
		—			—			—			—			—			—


		—			—			—			—			—			—



		—			—			—			—			—			—
		—			—			—			—			—			—
		—			—			—			—			—			—


		—			—			—			—			—			—



		14,242,823			130,147,794			7,386,366			68,349,848			26,946,983			250,368,552
		484,573			4,415,218			494,418			4,574,185			947,193			8,800,976
		(29,396,695	)		(268,351,758	)		(5,522,506	)		(51,119,315	)		(18,362,232	)		(170,553,631	)


		(14,669,299	)		(133,788,746	)		2,358,278			21,804,718			9,531,944			88,615,897



		17,502			160,777			11,734			109,286			18,916			176,443
		5,750			52,533			5,610			52,117			55,799			520,358
		(22,760	)		(208,933	)		(8,146	)		(75,652	)		(1,567,517	)		(14,639,257	)


		492			4,377			9,198			85,751			(1,492,802	)		(13,942,456	)



		—			—			1,080			10,000			—			—
		23			204			16			151			—			—


		23			204			1,096			10,151			—			—


		(11,728,969	)	$	(106,852,127	)		767,743		$	7,050,532			6,327,805		$	58,782,613

GOLDMAN SACHS ENHANCED INCOME FUND

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period


				Income (loss) from
				investment operations								Distributions
		Net asset										to shareholders
		value,		Net		Net realized			Total from			from net
		beginning		investment		and unrealized			investment			investment
	Year - Share Class	of period		income^(a)		gain (loss)			operations			income



FOR THE SIX MONTHS ENDED SEPTEMBER 30, (UNAUDITED)


	2008 - A	$	9.67	$	0.15	$	(0.18	)	$	(0.03	)	$	(0.17	)
	2008 - B		9.65		0.11		(0.16	)		(0.05	)		(0.14	)
	2008 - Institutional		9.66		0.16		(0.17	)		(0.01	)		(0.19	)
	2008 - Administration		9.68		0.15		(0.16	)		(0.01	)		(0.18	)


FOR THE PERIOD NOVEMBER 1, 2007 TO MARCH 31, 2008*


	2008 - A		9.72		0.16		(0.04	)		0.12			(0.17	)
	2008 - B		9.70		0.13		(0.04	)		0.09			(0.14	)
	2008 - Institutional		9.70		0.17		(0.03	)		0.14			(0.18	)
	2008 - Administration		9.72		0.17		(0.04	)		0.13			(0.17	)


FOR THE YEARS ENDED OCTOBER 31,


	2007 - A		9.73		0.43		—			0.43			(0.44	)
	2007 - B (commenced June 20, 2007)		9.74		0.13		(0.02	)		0.11			(0.15	)
	2007 - Institutional		9.72		0.47		(0.01	)		0.46			(0.48	)
	2007 - Administration		9.71		0.44		0.02			0.46			(0.45	)




	2006 - A		9.68		0.37		0.04			0.41			(0.36	)
	2006 - Institutional		9.67		0.40		0.04			0.44			(0.39	)
	2006 - Administration		9.67		0.38		0.03			0.41			(0.37	)




	2005 - A		9.78		0.28		(0.10	)		0.18			(0.28	)
	2005 - Institutional		9.77		0.32		(0.10	)		0.22			(0.32	)
	2005 - Administration		9.78		0.30		(0.12	)		0.18			(0.29	)




	2004 - A		9.99		0.25		(0.19	)		0.06			(0.27	)
	2004 - Institutional		9.98		0.30		(0.20	)		0.10			(0.31	)
	2004 - Administration		9.99		0.27		(0.19	)		0.08			(0.29	)




	2003 - A		10.13		0.33		(0.15	)		0.18			(0.32	)
	2003 - Institutional		10.12		0.37		(0.15	)		0.22			(0.36	)
	2003 - Administration		10.13		0.33		(0.14	)		0.19			(0.33	)


*	The Fund changed its fiscal year end from October 31 to March 31.


(a)	Calculated based on the average shares outstanding methodology.
(b)	Assumes investment at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, a complete redemption of the investment at the net asset value at the end of the period and no sales or redemption charges. Total returns would be reduced if a sales or redemption charge were taken into account. Total returns for periods less than one full year are not annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemptions of Fund shares.
(c)	Annualized.

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

GOLDMAN SACHS ENHANCED INCOME FUND


													Ratios assuming no
													expense reductions
										Ratio of						Ratio of
					Net assets,		Ratio of			net investment			Ratio of			net investment
Net asset					end of		net expenses			income			total expenses			income			Portfolio
value, end		Total			period		to average			to average			to average			to average			turnover
of period		return^(b)			(in 000s)		net assets			net assets			net assets			net assets			rate




$	9.47		(0.31	)%	$	38,224		0.58	%^(c)		3.05	%^(c)		0.79	%^(c)		2.84	%^(c)		46	%
	9.46		(0.58	)		2,849		1.33	^(c)		2.30	^(c)		1.54	^(c)		2.09	^(c)		46
	9.46		(0.14	)		224,626		0.24	^(c)		3.39	^(c)		0.45	^(c)		3.18	^(c)		46
	9.49		(0.16	)		270		0.49	^(c)		3.13	^(c)		0.70	^(c)		2.92	^(c)		46





	9.67		1.32			40,286		0.58	^(c)		3.90	^(c)		0.76	^(c)		3.72	^(c)		8
	9.65		0.91			3,501		1.33	^(c)		3.16	^(c)		1.51	^(c)		2.98	^(c)		8
	9.66		1.47			228,300		0.24	^(c)		4.26	^(c)		0.42	^(c)		4.08	^(c)		8
	9.68		1.36			266		0.49	^(c)		4.29	^(c)		0.67	^(c)		4.11	^(c)		8





	9.72		4.43			40,505		0.61			4.46			0.79			4.28			87
	9.70		1.16			5,230		1.36	^(c)		3.87	^(c)		1.54	^(c)		3.69	^(c)		87
	9.70		4.82			236,210		0.25			4.82			0.43			4.64			87
	9.72		4.88			254		0.50			4.40			0.68			4.22			87




	9.73		4.26			36,333		0.62			3.77			0.78			3.61			67
	9.72		4.66			173,430		0.25			4.15			0.41			3.99			67
	9.71		4.29			1,703		0.50			3.91			0.66			3.75			67




	9.68		1.88			65,645		0.64			2.94			0.79			2.80			49
	9.67		2.28			301,362		0.25			3.34			0.40			3.19			49
	9.67		1.92			2,568		0.50			3.09			0.65			2.94			49




	9.78		0.63			150,537		0.65			2.61			0.73			2.53			51
	9.77		1.04			492,276		0.25			3.02			0.33			2.94			51
	9.78		0.79			38,881		0.50			2.75			0.58			2.67			51




	9.99		1.77			378,378		0.65			3.28			0.71			3.22			41
	9.98		2.18			1,106,956		0.25			3.65			0.31			3.59			41
	9.99		1.93			50,463		0.50			3.34			0.56			3.28			41

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

GOLDMAN SACHS GOVERNMENT INCOME FUND

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period


				Income (loss) from								Distributions
		Net asset		investment operations								to shareholders
		value,		Net		Net realized			Total from			From net			From net
		beginning		investment		and unrealized			investment			investment			realized			Total
	Year - Share Class	of period		income^(a)		gain (loss)			operations			income			gains			distributions

FOR THE SIX MONTHS ENDED SEPTEMBER 30, (UNAUDITED)


	2008 - A	$	15.07	$	0.31	$	(0.37	)	$	(0.06	)	$	(0.28	)	$	—		$	(0.28	)
	2008 - B		15.07		0.25		(0.35	)		(0.10	)		(0.23	)		—			(0.23	)
	2008 - C		15.07		0.25		(0.37	)		(0.12	)		(0.22	)		—			(0.22	)
	2008 - Institutional		15.05		0.33		(0.36	)		(0.03	)		(0.31	)		—			(0.31	)
	2008 - Service		15.04		0.30		(0.37	)		(0.07	)		(0.27	)		—			(0.27	)
	2008 - IR		15.08		0.32		(0.37	)		(0.05	)		(0.30	)		—			(0.30	)
	2008 - R		15.08		0.29		(0.37	)		(0.08	)		(0.27	)		—			(0.27	)


FOR THE PERIOD NOVEMBER 1, 2007 TO MARCH 31, 2008*


	2008 - A		14.79		0.26		0.28			0.54			(0.26	)		—			(0.26	)
	2008 - B		14.79		0.22		0.27			0.49			(0.21	)		—			(0.21	)
	2008 - C		14.78		0.21		0.29			0.50			(0.21	)		—			(0.21	)
	2008 - Institutional		14.77		0.28		0.28			0.56			(0.28	)		—			(0.28	)
	2008 - Service		14.76		0.25		0.28			0.53			(0.25	)		—			(0.25	)
	2008 - IR (commenced November 30, 2007)		15.02		0.22		0.06			0.28			(0.22	)		—			(0.22	)
	2008 - R (commenced November 30, 2007)		15.02		0.20		0.06			0.26			(0.20	)		—			(0.20	)


FOR THE YEARS ENDED OCTOBER 31,


	2007 - A		14.64		0.60		0.13			0.73			(0.58	)		—			(0.58	)
	2007 - B		14.64		0.50		0.12			0.62			(0.47	)		—			(0.47	)
	2007 - C		14.63		0.49		0.13			0.62			(0.47	)		—			(0.47	)
	2007 - Institutional		14.63		0.65		0.13			0.78			(0.64	)		—			(0.64	)
	2007 - Service		14.61		0.58		0.13			0.71			(0.56	)		—			(0.56	)



	2006 - A		14.57		0.55		0.08			0.63			(0.56	)		—	^(e)		(0.56	)
	2006 - B		14.57		0.44		0.08			0.52			(0.45	)		—	^(e)		(0.45	)
	2006 - C		14.56		0.44		0.08			0.52			(0.45	)		—	^(e)		(0.45	)
	2006 - Institutional		14.55		0.60		0.09			0.69			(0.61	)		—	^(e)		(0.61	)
	2006 - Service		14.54		0.53		0.08			0.61			(0.54	)		—	^(e)		(0.54	)



	2005 - A		15.00		0.43		(0.30	)		0.13			(0.39	)		(0.17	)		(0.56	)
	2005 - B		15.00		0.30		(0.28	)		0.02			(0.28	)		(0.17	)		(0.45	)
	2005 - C		14.99		0.31		(0.29	)		0.02			(0.28	)		(0.17	)		(0.45	)
	2005 - Institutional		14.98		0.46		(0.27	)		0.19			(0.45	)		(0.17	)		(0.62	)
	2005 - Service		14.98		0.41		(0.31	)		0.10			(0.37	)		(0.17	)		(0.54	)



	2004 - A		14.88		0.39		0.33			0.72			(0.47	)		(0.13	)		(0.60	)
	2004 - B		14.88		0.28		0.32			0.60			(0.35	)		(0.13	)		(0.48	)
	2004 - C		14.87		0.28		0.32			0.60			(0.35	)		(0.13	)		(0.48	)
	2004 - Institutional		14.85		0.46		0.33			0.79			(0.53	)		(0.13	)		(0.66	)
	2004 - Service		14.85		0.37		0.34			0.71			(0.45	)		(0.13	)		(0.58	)



	2003 - A		14.95		0.41		0.05			0.46			(0.51	)		(0.02	)		(0.53	)
	2003 - B		14.95		0.31		0.04			0.35			(0.40	)		(0.02	)		(0.42	)
	2003 - C		14.94		0.31		0.04			0.35			(0.40	)		(0.02	)		(0.42	)
	2003 - Institutional		14.93		0.47		0.04			0.51			(0.57	)		(0.02	)		(0.59	)
	2003 - Service		14.92		0.41		0.04			0.45			(0.50	)		(0.02	)		(0.52	)


*	The Fund changed its fiscal year end from October 31 to March 31.


(a)	Calculated based on the average shares outstanding methodology.

(b)

Assumes investment at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, a complete redemption of the investment at the net asset value at the end of the period and no sales or redemption charges. Total returns would be reduced if a sales or redemption charge were taken into account. Total returns for periods less than one full year are not annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.


(c)	There were no mortgage dollar roll transactions for the six months ended September 30, 2008. The portfolio turnover rate excluding the effect of mortgage dollar rolls is 119% for the period ended March 31, 2008, 117% for the year ended October 31, 2007 and 690% for the year ended October 31, 2006. Prior years include the effect of mortgage dollar roll transactions, if any.


(d)	Annualized.


(e)	Amount is less than $0.005 per share.

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

GOLDMAN SACHS GOVERNMENT INCOME FUND


													Ratios assuming no
													expense reductions
										Ratio of						Ratio of
					Net assets,		Ratio of			net investment			Ratio of			net investment
Net asset					end of		net expenses			income			total expenses			income			Portfolio
value, end		Total			period		to average			to average			to average			to average			turnover
of period		return^(b)			(in 000s)		net assets			net assets			net assets			net assets			rate^(c)




$	14.73		(0.39	)%	$	513,219		0.92	%^(d)		4.10	%^(d)		0.98	%^(d)		4.04	%^(d)		93	%
	14.74		(0.69	)		46,021		1.67	^(d)		3.34	^(d)		1.73	^(d)		3.28	^(d)		93
	14.73		(0.77	)		31,216		1.67	^(d)		3.35	^(d)		1.73	^(d)		3.29	^(d)		93
	14.71		(0.22	)		291,927		0.58	^(d)		4.44	^(d)		0.64	^(d)		4.38	^(d)		93
	14.70		(0.47	)		74,003		1.08	^(d)		3.97	^(d)		1.14	^(d)		3.91	^(d)		93
	14.73		(0.33	)		10		0.67	^(d)		4.31	^(d)		0.73	^(d)		4.25	^(d)		93
	14.73		(0.46	)		10		1.17	^(d)		3.86	^(d)		1.23	^(d)		3.80	^(d)		93





	15.07		3.63			512,301		0.90	^(d)		4.20	^(d)		0.99	^(d)		4.11	^(d)		161
	15.07		3.31			50,078		1.65	^(d)		3.46	^(d)		1.74	^(d)		3.37	^(d)		161
	15.07		3.37			30,010		1.65	^(d)		3.44	^(d)		1.74	^(d)		3.35	^(d)		161
	15.05		3.79			300,342		0.56	^(d)		4.56	^(d)		0.65	^(d)		4.47	^(d)		161
	15.04		3.57			59,449		1.06	^(d)		4.03	^(d)		1.15	^(d)		3.94	^(d)		161
	15.08		1.85			10		0.66	^(d)		4.24	^(d)		0.78	^(d)		4.12	^(d)		161
	15.08		1.65			10		1.16	^(d)		3.86	^(d)		1.28	^(d)		3.74	^(d)		161





	14.79		5.13			434,917		0.94			4.11			1.02			4.03			141
	14.79		4.34			49,393		1.69			3.44			1.77			3.36			141
	14.78		4.35			22,078		1.69			3.37			1.77			3.29			141
	14.77		5.45			323,764		0.58			4.49			0.66			4.41			141
	14.76		5.00			45,154		1.08			3.99			1.16			3.91			141



	14.64		4.40			432,762		0.95			3.77			1.04			3.68			766
	14.64		3.62			18,713		1.70			3.03			1.79			2.94			766
	14.63		3.63			16,931		1.70			3.04			1.79			2.95			766
	14.63		4.86			146,784		0.58			4.18			0.67			4.09			766
	14.61		4.27			23,461		1.08			3.67			1.17			3.58			766



	14.57		0.80			729,958		0.97			2.83			1.07			2.73			256
	14.57		0.04			24,882		1.72			2.08			1.83			1.97			256
	14.56		0.11			18,692		1.72			2.08			1.83			1.97			256
	14.55		1.26			60,747		0.58			3.20			0.69			3.08			256
	14.54		0.69			16,198		1.08			2.74			1.18			2.64			256



	15.00		4.99			494,883		0.98			2.60			1.17			2.41			609
	15.00		4.21			32,782		1.73			1.93			1.92			1.74			609
	14.99		4.14			20,778		1.73			1.91			1.92			1.72			609
	14.98		5.35			69,770		0.58			3.12			0.77			2.93			609
	14.98		4.90			9,467		1.08			2.55			1.27			2.36			609



	14.88		3.11			358,058		0.99			2.78			1.18			2.59			520
	14.88		2.34			44,120		1.74			2.06			1.93			1.87			520
	14.87		2.34			23,720		1.74			2.05			1.93			1.86			520
	14.85		3.60			151,111		0.59			3.16			0.78			2.97			520
	14.85		3.01			10,491		1.09			2.72			1.28			2.53			520

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

GOLDMAN SACHS INFLATION PROTECTED SECURITIES FUND

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period


				Income (loss)
				investment operations								Distributions
		Net asset										to shareholders
		value,		Net		Net realized			Total from			from net
		beginning		investment		and unrealized			investment			investment
	Year - Share Class	of period		income^(a)		gain (loss)			operations			income



FOR THE SIX MONTHS ENDED SEPTEMBER 30, (UNAUDITED)


	2008 - A	$	11.07	$	0.47	$	(0.92	)	$	(0.45	)	$	(0.10	)
	2008 - C		11.11		0.42		(0.92	)		(0.50	)		(0.06	)
	2008 - Institutional		11.11		0.50		(0.94	)		(0.44	)		(0.12	)
	2008 - IR		11.09		0.46		(0.90	)		(0.44	)		(0.11	)
	2008 - R		11.09		0.44		(0.91	)		(0.47	)		(0.08	)


FOR THE PERIOD ENDED MARCH 31,


	2008 - A (commenced August 31, 2007)		10.00		0.27		0.93			1.20			(0.13	)
	2008 - C (commenced August 31, 2007)		10.00		0.29		0.91			1.20			(0.09	)
	2008 - Institutional (commenced August 31, 2007)		10.00		0.24		1.02			1.26			(0.15	)
	2008 - IR (commenced November 30, 2007)		10.56		0.17		0.46			0.63			(0.10	)
	2008 - R (commenced November 30, 2007)		10.56		0.16		0.45			0.61			(0.08	)


(a)	Calculated based on the average shares outstanding methodology.
(b)	Assumes investment at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, a complete redemption of the investment at the net asset value at the end of the period and no sales or redemption charges. Total returns would be reduced if a sales or redemption charge were taken into account. Total returns for periods less than one full year are not annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
(c)	Annualized.

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

GOLDMAN SACHS INFLATION PROTECTED SECURITIES FUND


													Ratios assuming no
													expense reductions
										Ratio of						Ratio of
					Net assets,		Ratio of			net investment			Ratio of			net investment
Net asset					end of		net expenses			income			total expenses			income			Portfolio
value, end		Total			period		to average			to average			to average			to average			turnover
of period		return^(b)			(in 000s)		net assets^(c)			net assets^(c)			net assets^(c)			net assets^(c)			rate




$	10.52		(4.10	)%	$	47,793		0.67	%		8.65	%		1.62	%		7.70	%		27	%
	10.55		(4.54	)		7,542		1.42			7.79			2.37			6.84			27
	10.55		(3.93	)		36,941		0.33			9.12			1.28			8.17			27
	10.54		(3.98	)		10		0.42			8.43			1.37			7.48			27
	10.54		(4.21	)		10		0.92			7.96			1.87			7.01			27





	11.07		12.09			20,155		0.67			4.37			4.22			0.82			1
	11.11		12.02			3,031		1.42			4.61			4.97			1.06			1
	11.11		12.62			11,765		0.32			3.95			3.87			0.40			1
	11.09		5.98			11		0.42			4.80			4.68			0.54			1
	11.09		5.81			11		0.92			4.31			5.18			0.05			1

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period


				Income (loss) from								Distributions
		Net asset		investment operations								to shareholders
		value,		Net		Net realized			Total from			From net			From net
		beginning		investment		and unrealized			investment			investment			realized			Total
	Year - Share Class	of period		income^(a)		gain (loss)			operations			income			gains			distributions



FOR THE SIX MONTHS ENDED SEPTEMBER 30, (UNAUDITED)


	2008 - A	$	10.14	$	0.16	$	(0.04	)	$	0.12		$	(0.18	)	$	—		$	(0.18	)
	2008 - B		10.10		0.13		(0.04	)		0.09			(0.15	)		—			(0.15	)
	2008 - C		10.07		0.13		(0.04	)		0.09			(0.14	)		—			(0.14	)
	2008 - Institutional		10.11		0.18		(0.04	)		0.14			(0.20	)		—			(0.20	)
	2008 - Service		10.09		0.15		(0.03	)		0.12			(0.17	)		—			(0.17	)
	2008 - IR		10.14		0.18		(0.05	)		0.13			(0.19	)		—			(0.19	)


FOR THE PERIOD NOVEMBER 1, 2007 TO MARCH 31, 2008*


	2008 - A		9.79		0.17		0.34			0.51			(0.16	)		—			(0.16	)
	2008 - B		9.76		0.15		0.32			0.47			(0.13	)		—			(0.13	)
	2008 - C		9.73		0.14		0.33			0.47			(0.13	)		—			(0.13	)
	2008 - Institutional		9.77		0.18		0.33			0.51			(0.17	)		—			(0.17	)
	2008 - Service		9.75		0.16		0.33			0.49			(0.15	)		—			(0.15	)
	2008 - IR (commenced November 30, 2007)		9.91		0.15		0.21			0.36			(0.13	)		—			(0.13	)


FOR THE YEARS ENDED OCTOBER 31,


	2007 - A		9.67		0.37		0.12			0.49			(0.37	)		—			(0.37	)
	2007 - B		9.64		0.32		0.11			0.43			(0.31	)		—			(0.31	)
	2007 - C		9.61		0.30		0.11			0.41			(0.29	)		—			(0.29	)
	2007 - Institutional		9.64		0.41		0.12			0.53			(0.40	)		—			(0.40	)
	2007 - Service		9.63		0.36		0.11			0.47			(0.35	)		—			(0.35	)




	2006 - A		9.65		0.33		0.03			0.36			(0.34	)		—			(0.34	)
	2006 - B		9.62		0.26		0.05			0.31			(0.29	)		—			(0.29	)
	2006 - C		9.59		0.26		0.03			0.29			(0.27	)		—			(0.27	)
	2006 - Institutional		9.63		0.37		0.02			0.39			(0.38	)		—			(0.38	)
	2006 - Service		9.61		0.32		0.03			0.35			(0.33	)		—			(0.33	)




	2005 - A		9.86		0.24		(0.19	)		0.05			(0.26	)		—			(0.26	)
	2005 - B		9.83		0.19		(0.20	)		(0.01	)		(0.20	)		—			(0.20	)
	2005 - C		9.81		0.17		(0.20	)		(0.03	)		(0.19	)		—			(0.19	)
	2005 - Institutional		9.84		0.29		(0.20	)		0.09			(0.30	)		—			(0.30	)
	2005 - Service		9.82		0.23		(0.19	)		0.04			(0.25	)		—			(0.25	)




	2004 - A		9.99		0.24		(0.06	)		0.18			(0.30	)		(0.01	)		(0.31	)
	2004 - B		9.95		0.19		(0.06	)		0.13			(0.24	)		(0.01	)		(0.25	)
	2004 - C		9.93		0.17		(0.06	)		0.11			(0.22	)		(0.01	)		(0.23	)
	2004 - Institutional		9.96		0.28		(0.05	)		0.23			(0.33	)		(0.02	)		(0.35	)
	2004 - Service		9.95		0.22		(0.05	)		0.17			(0.29	)		(0.01	)		(0.30	)




	2003 - A		10.12		0.35		(0.14	)		0.21			(0.34	)		—			(0.34	)
	2003 - B		10.09		0.29		(0.15	)		0.14			(0.28	)		—			(0.28	)
	2003 - C		10.07		0.27		(0.14	)		0.13			(0.27	)		—			(0.27	)
	2003 - Institutional		10.10		0.39		(0.15	)		0.24			(0.38	)		—			(0.38	)
	2003 - Service		10.09		0.34		(0.15	)		0.19			(0.33	)		—			(0.33	)


*	The Fund changed its fiscal year end from October 31 to March 31.


(a)	Calculated based on the average shares outstanding methodology.

(b)


(c)	The portfolio turnover rate excluding the effect of mortgage dollar rolls is 40% for the six months ended September 30, 2008, 55% for the period ended March 31, 2008 and 96% for the year ended October 31, 2007. Prior years include the effect of mortgage dollar roll transactions, if any.


(d)	Annualized.

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND


													Ratios assuming no
													expense reductions
										Ratio of						Ratio of
					Net assets,		Ratio of			net investment			Ratio of			net investment
Net asset					end of		net expenses			income			total expenses			income			Portfolio
value, end		Total			period		to average			to average			to average			to average			turnover
of period		return^(b)			(in 000s)		net assets			net assets			net assets			net assets			rate^(c)




$	10.08		1.19	%	$	473,109		0.87	%^(d)		3.27	%^(d)		0.93	%^(d)		3.21	%^(d)		40	%
	10.04		0.89			6,590		1.47	^(d)		2.66	^(d)		1.68	^(d)		2.45	^(d)		40
	10.02		0.92			54,195		1.62	^(d)		2.51	^(d)		1.68	^(d)		2.45	^(d)		40
	10.05		1.36			707,302		0.53	^(d)		3.60	^(d)		0.59	^(d)		3.54	^(d)		40
	10.04		1.21			108,153		1.02	^(d)		3.00	^(d)		1.08	^(d)		2.94	^(d)		40
	10.08		1.32			10		0.62	^(d)		3.49	^(d)		0.68	^(d)		3.43	^(d)		40





	10.14		5.23			393,830		0.88	^(d)		4.11	^(d)		0.94	^(d)		4.05	^(d)		61
	10.10		4.88			7,975		1.48	^(d)		3.52	^(d)		1.69	^(d)		3.31	^(d)		61
	10.07		4.83			40,967		1.63	^(d)		3.36	^(d)		1.69	^(d)		3.30	^(d)		61
	10.11		5.29			761,654		0.53	^(d)		4.44	^(d)		0.59	^(d)		4.38	^(d)		61
	10.09		5.08			8,429		1.03	^(d)		3.96	^(d)		1.09	^(d)		3.90	^(d)		61
	10.14		3.67			10		0.63	^(d)		4.30	^(d)		0.69	^(d)		4.24	^(d)		61





	9.79		5.25			303,073		0.90			3.85			0.97			3.78			102
	9.76		4.65			9,263		1.50			3.26			1.71			3.05			102
	9.73		4.51			29,944		1.65			3.10			1.72			3.04			102
	9.77		5.77			630,240		0.54			4.23			0.61			4.16			102
	9.75		5.14			8,141		1.04			3.68			1.10			3.62			102




	9.67		3.84			323,915		0.91			3.35			0.99			3.27			100
	9.64		3.24			14,433		1.51			2.73			1.74			2.50			100
	9.61		3.09			41,691		1.66			2.59			1.74			2.51			100
	9.64		4.13			468,033		0.54			3.72			0.62			3.64			100
	9.63		3.72			12,177		1.04			3.22			1.12			3.14			100




	9.65		0.50			327,365		0.93			2.50			0.99			2.44			98
	9.62		(0.10	)		23,602		1.54			1.95			1.74			1.75			98
	9.59		(0.35	)		57,078		1.69			1.80			1.74			1.75			98
	9.63		0.89			517,492		0.54			2.87			0.60			2.81			98
	9.61		0.39			13,009		1.04			2.38			1.10			2.32			98




	9.86		1.81			321,863		0.94			2.41			1.00			2.35			249
	9.83		1.31			38,526		1.54			1.85			1.75			1.64			249
	9.81		1.16			90,317		1.69			1.71			1.75			1.65			249
	9.84		2.33			382,008		0.54			2.79			0.60			2.73			249
	9.82		1.72			11,047		1.04			2.22			1.10			2.16			249




	9.99		2.11			317,379		0.95			3.46			1.01			3.40			184
	9.95		1.41			50,580		1.55			2.87			1.76			2.66			184
	9.93		1.26			130,087		1.70			2.71			1.76			2.65			184
	9.96		2.43			415,210		0.55			3.86			0.61			3.80			184
	9.95		1.92			6,156		1.05			3.36			1.11			3.30			184

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period


				Income (loss) from
				investment operation
											Distributions
		Net asset									to shareholders
		value,		Net		Net realized			Total from		from net
		beginning		investment		and unrealized			investment		investment
	Year - Share Class	of period		income^(a)		gain (loss)			operations		income

FOR THE SIX MONTHS ENDED SEPTEMBER 30, (UNAUDITED)


	2008 - A	$	9.14	$	0.16	$	(0.13	)	$	0.03	$	(0.17	)
	2008 - Institutional		9.14		0.17		(0.12	)		0.05		(0.19	)
	2008 - Service		9.18		0.15		(0.12	)		0.03		(0.17	)
	2008 - IR		9.14		0.17		(0.13	)		0.04		(0.18	)


FOR THE PERIOD NOVEMBER 1, 2007 TO MARCH 31, 2008*


	2008 - A		9.28		0.15		(0.12	)		0.03		(0.17	)
	2008 - Institutional		9.28		0.16		(0.12	)		0.04		(0.18	)
	2008 - Service		9.32		0.15		(0.13	)		0.02		(0.16	)
	2008 - IR (commenced November 30, 2007)		9.26		0.12		(0.10	)		0.02		(0.14	)


FOR THE YEARS ENDED OCTOBER 31,


	2007 - A		9.27		0.36		0.10			0.46		(0.45	)
	2007 - Institutional		9.27		0.39		0.10			0.49		(0.48	)
	2007 - Service		9.31		0.35		0.09			0.44		(0.43	)




	2006 - A		9.27		0.32		0.05			0.37		(0.37	)
	2006 - Institutional		9.28		0.35		0.05			0.40		(0.41	)
	2006 - Service		9.31		0.31		0.05			0.36		(0.36	)




	2005 - A		9.33		0.20		(0.01	)		0.19		(0.25	)
	2005 - Institutional		9.34		0.23		—	^(e)		0.23		(0.29	)
	2005 - Service		9.37		0.19		(0.01	)		0.18		(0.24	)




	2004 - A		9.47		0.19		(0.04	)		0.15		(0.29	)
	2004 - Institutional		9.48		0.23		(0.04	)		0.19		(0.33	)
	2004 - Service		9.50		0.18		(0.03	)		0.15		(0.28	)




	2003 - A		9.66		0.24		(0.11	)		0.13		(0.32	)
	2003 - Institutional		9.68		0.28		(0.12	)		0.16		(0.36	)
	2003 - Service		9.69		0.23		(0.11	)		0.12		(0.31	)


*	The Fund changed its fiscal year end from October 31 to March 31.


(a)	Calculated based on the average shares outstanding methodology.

(b)


(c)	There were no mortgage dollar roll transactions for the six months ended September 30, 2008. The portfolio turnover rate excluding the effect of mortgage dollar rolls is 10% for the period ended March 31, 2008 and 78% for the year ended October 31, 2007. Prior years include the effect of mortgage dollar roll transactions, if any.


(d)	Annualized.


(e)	Less than $0.005 per share.

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND


													Ratios assuming no
													expense reductions
										Ratio of						Ratio of
					Net assets,		Ratio of			net investment			Ratio of			net investment
Net asset					end of		net expenses			income			total expenses			income			Portfolio
value, end		Total			period		to average			to average			to average			to average			turnover
of period		return^(b)			(in 000s)		net assets			net assets			net assets			net assets			rate^(c)




$	9.00		0.36	%	$	115,453		0.82	%^(d)		3.51	%^(d)		0.87	%^(d)		3.46	%^(d)		58	%
	9.00		0.64			283,736		0.48	^(d)		3.80	^(d)		0.53	^(d)		3.75	^(d)		58
	9.04		0.27			3,570		0.98	^(d)		3.34	^(d)		1.03	^(d)		3.29	^(d)		58
	9.00		0.48			10		0.57	^(d)		3.73	^(d)		0.62	^(d)		3.68	^(d)		58





	9.14		0.31			90,398		0.81	^(d)		3.94	^(d)		0.87	^(d)		3.88	^(d)		28
	9.14		0.46			422,242		0.47	^(d)		4.26	^(d)		0.53	^(d)		4.20	^(d)		28
	9.18		0.25			3,620		0.98	^(d)		3.81	^(d)		1.04	^(d)		3.75	^(d)		28
	9.14		0.20			10		0.57	^(d)		3.93	^(d)		0.60	^(d)		3.90	^(d)		28





	9.28		5.02			106,648		0.85			3.86			0.89			3.82			94
	9.28		5.41			406,895		0.49			4.22			0.53			4.18			94
	9.32		4.86			3,590		0.99			3.68			1.02			3.64			94




	9.27		4.20			122,379		0.86			3.46			0.91			3.41			57
	9.27		4.36			317,956		0.49			3.83			0.54			3.78			57
	9.31		3.93			17,478		0.99			3.32			1.04			3.27			57




	9.27		1.98			190,210		0.89			2.20			0.89			2.20			71
	9.28		2.49			584,628		0.49			2.59			0.50			2.58			71
	9.31		1.97			42,642		0.99			2.06			1.00			2.05			71




	9.33		1.61			373,650		0.88			2.12			0.88			2.12			103
	9.34		2.02			1,158,844		0.48			2.49			0.48			2.49			103
	9.37		1.61			53,241		0.98			1.95			0.98			1.95			103




	9.47		1.40			768,910		0.86			2.55			0.86			2.55			102
	9.48		1.69			1,967,845		0.46			2.95			0.46			2.95			102
	9.50		1.29			67,480		0.96			2.43			0.96			2.43			102

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Fund Expenses (Unaudited) — Six Month Period Ended September 30, 2008

As a shareholder of Class A, Class B, Class C, Institutional, Administration, Service, Class IR or Class R Shares of the Funds you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (with respect to Class A Shares), contingent deferred sales charges (loads) on redemptions (with respect to Class B and Class C Shares), and redemption fees (if any); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees (with respect to Class A, Class B, Class C and Class R Shares); and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in Class A, Class B, Class C, Institutional, Administration, Service, Class IR and Class R Shares of the Funds 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 April 1, 2008 through September 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 heading entitled “Expenses Paid” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes — The second line under each share class in the table below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual net expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ 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 Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


	Enhanced Income Fund							Government Income Fund							Inflation Protected Securities Fund							Short Duration Government Fund							Ultra-Short Duration Government Fund
						Expenses							Expenses							Expenses							Expenses							Expenses
	Beginning		Ending			Paid for the		Beginning		Ending			Paid for the		Beginning		Ending			Paid for the		Beginning		Ending			Paid for the		Beginning		Ending			Paid for the
	Account Value		Account Value			6 months ended		Account Value		Account Value			6 months ended		Account Value		Account Value			6 months ended		Account Value		Account Value			6 months ended		Account Value		Account Value			6 months ended
Share Class	4/1/08		9/30/08			9/30/08*		4/1/08		9/30/08			9/30/08*		4/1/08		9/30/08			9/30/08*		4/1/08		9/30/08			9/30/08*		4/1/08		9/30/08			9/30/08*
Class A
Actual	$	1,000	$	996.90		$	2.89	$	1,000	$	996.10		$	4.58	$	1,000	$	959.00		$	3.30	$	1,000	$	1,011.90		$	4.38	$	1,000	$	1,003.60		$	4.11
Hypothetical 5% return		1,000		1,022.17	+		2.93		1,000		1,020.48	+		4.64		1,000		1,021.70	+		3.41		1,000		1,020.71	+		4.40		1,000		1,020.96	+		4.15

Class B
Actual		1,000		994.20			6.65		1,000		993.10			8.32		N/A		N/A			N/A		1,000		1,008.90			7.39		N/A		N/A			N/A
Hypothetical 5% return		1,000		1,018.40	+		6.73		1,000		1,016.72	+		8.42		N/A		N/A			N/A		1,000		1,017.71	+		7.43		N/A		N/A			N/A

Class C
Actual		N/A		N/A			N/A		1,000		992.30			8.32		1,000		954.60			6.97		1,000		1,009.20			8.15		N/A		N/A			N/A
Hypothetical 5% return		N/A		N/A			N/A		1,000		1,016.72	+		8.42		1,000		1,017.94	+		7.19		1,000		1,016.96	+		8.18		N/A		N/A			N/A

Institutional
Actual		1,000		998.60			1.20		1,000		997.80			2.88		1,000		960.70			1.63		1,000		1,013.63			2.66		1,000		1,006.40			2.39
Hypothetical 5% return		1,000		1,023.87	+		1.21		1,000		1,022.18	+		2.92		1,000		1,023.41	+		1.68		1,000		1,022.42	+		2.68		1,000		1,022.69	+		2.41

Administration
Actual		1,000		998.40			2.46		N/A		N/A			N/A		N/A		N/A			N/A		N/A		N/A			N/A		N/A		N/A			N/A
Hypothetical 5% return		1,000		1,022.61	+		2.49		N/A		N/A			N/A		N/A		N/A			N/A		N/A		N/A			N/A		N/A		N/A			N/A

Service
Actual		N/A		N/A			N/A		1,000		995.30			5.39		N/A		N/A			N/A		1,000		1,012.10			5.17		1,000		1,002.70			4.91
Hypothetical 5% return		N/A		N/A			N/A		1,000		1,019.67	+		5.45		N/A		N/A			N/A		1,000		1,019.93	+		5.19		1,000		1,020.16	+		4.96

Class IR
Actual		N/A		N/A			N/A		1,000		996.70			3.35		1,000		960.20			2.16		1,000		1,013.20			3.16		1,000		1,004.80			2.92
Hypothetical 5% return		N/A		N/A			N/A		1,000		1,025.07	+		3.40		1,000		1,025.07	+		2.23		1,000		1,025.07	+		3.18		1,000		1,025.07	+		2.95

Class R
Actual		N/A		N/A			N/A		1,000		995.40			5.84		1,000		957.90			4.50		N/A		N/A			N/A		N/A		N/A			N/A
Hypothetical 5% return		N/A		N/A			N/A		1,000		1,019.21	+		5.91		1,000		1,020.48	+		4.64		N/A		N/A			N/A		N/A		N/A			N/A

Expenses for each share class are calculated using each Fund’s annualized net expense ratio for each class, which represents the ongoing expenses as a percentage of net assets for the six months ended September 30, 2008. 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:


Fund	Class A			Class B			Class C			Institutional			Administration			Service			Class IR			Class R

Enhanced Income		0.58	%		1.33	%		N/A			0.24	%		0.49	%		N/A			N/A			N/A
Government Income		0.92			1.67			1.67	%		0.58			N/A			1.08	%		0.67	%		1.17	%
Inflation Protected Securities		0.67			N/A			1.42			0.33			N/A			N/A			0.42			0.92
Short Duration Government		0.87			1.47			1.62			0.53			N/A			1.02			0.62			N/A
Ultra-Short Duration Government		0.82			N/A			N/A			0.48			N/A			0.98			0.57			N/A


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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Statement Regarding Basis for Approval of Management Agreements (Unaudited)

Background

The Goldman Sachs Enhanced Income Fund, Goldman Sachs Government Income Fund, Goldman Sachs Inflation Protected Securities Fund, Goldman Sachs Short Duration Government Fund and Goldman Sachs Ultra-Short Duration Government Fund (the “Funds”) 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 Funds 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 agreements (the “Management Agreements”) with Goldman Sachs Asset Management, L.P. (the “Investment Adviser”) with respect to the Funds.

The Management Agreements were most recently approved for continuation until June 30, 2009 by the Board of Trustees, including those Trustees who are not parties to the Management Agreements 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 Funds’ investment performance, expenses and other matters discussed 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 Agreements including: (a) the nature and quality of the advisory, administrative and other services provided to the Funds by the Investment Adviser and its affiliates; (b) the Funds’ investment performance; (c) the Funds’ management fee arrangements; (d) the Investment Adviser’s undertakings to reimburse certain fees and expenses of the Funds that exceed specified levels and the estimated annualized savings realized by the Funds from those undertakings; (e) potential economies of scale and the levels of breakpoints in the fees payable by the Funds under the Management Agreements; (f) the relative expense levels of the Funds 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 Funds; (h) the statutory and regulatory requirements applicable to the approval and continuation of mutual fund investment management agreements; (i) a summary of fee concessions by the Investment Adviser and its affiliates with respect to the Funds; (j) recently proposed changes to the expense cap arrangements, and proposed amendments to the management fee schedules to further reduce the fee rates charged on assets above specified levels; (k) capacity issues related to the Funds; (l) information on the advisory fees charged to institutional accounts by the Investment Adviser; (m) 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 Funds; (n) the current pricing and profitability of the Funds’ transfer agent; and (o) the nature and quality of the services provided by the Funds’ unaffiliated service providers and reports on due diligence conducted by the Investment Adviser with respect to those service providers.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

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

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 talented personnel; (f) the fees received by the Investment Adviser’s affiliates from the Funds for transfer agency, distribution and other services; (g) the terms of the Management Agreements and agreements with other service providers entered into by the Trust on behalf of the Funds; (h) the administrative services provided under the Management Agreements, including the nature and extent of the Investment Adviser’s oversight of the Funds’ other service providers, including the custodian and fund accounting agent; (i) portfolio trading related issues; and (j) 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 Fund, and each Fund’s investment performance, fees and expenses, including each Fund’s expense trends over time and existing and proposed breakpoints in the fee rates payable under the Management Agreements.

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 Funds’ assets, sales and redemptions, and the payment of Rule 12b-1 distribution and service fees by the Funds and non-Rule 12b-1 shareholder service and administration fees by certain of the Funds’ Service Shares. 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 Fund shares; portfolio manager ownership of Fund shares; portfolio manager compensation, the alignment of the interests of the Funds and the portfolio managers and related potential conflicts of interest; the number and types of accounts managed by the portfolio managers; 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 Funds and other mutual fund portfolios for which the Board of Trustees has responsibility. While the management agreements for all of the Funds 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 Agreements as they applied to each Fund.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

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

In evaluating the Management Agreements 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 Funds. At those meetings the Trustees received materials relating to the Investment Adviser’s investment management and other services provided under the Management Agreements, including: (a) information on the investment performance of the Funds in comparison to the performance of similar mutual funds and benchmark performance indices; (b) general investment outlooks in the markets in which the Funds invest; (c) compliance reports; and (d) expenses borne by the Funds. In addition, the Trustees were provided with copies of disclosure materials regarding the Funds and their expenses, as well as information on the Funds’ competitive universe and discussed the broad range of other investment choices that are available to Fund investors.

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

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 Funds by the Investment Adviser and its affiliates. The Trustees concluded that the Investment Adviser was both able to commit substantial financial and other resources to the operations of the Funds 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 that the Investment Adviser had made significant commitments to address regulatory compliance requirements applicable to the Funds 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 Funds and the Investment Adviser. In this regard, they compared the investment performance of each Fund (with the exception of the Inflation Protected Securities Fund, which commenced operations in 2007) to the performance of other similar SEC-registered funds and to rankings and ratings compiled by the Outside Data Provider. The Independent Trustees also reviewed each Fund’s investment performance relative to its performance benchmark. This information on each Fund’s investment performance was provided for the one-, three-, five- and ten-year periods ended December 31, 2007, to the extent that each Fund had been in existence for those periods. In addition, they considered the investment performance trends of the Funds over time, and reviewed the investment performance of each Fund in light of its investment objective and policies, credit and duration parameters, as well as in light of periodic analyses of its quality and risk profile. The Independent Trustees also considered whether the Funds had operated within their investment policies, and their record of compliance with their investment limitations. The Trustees noted that the Inflation Protected Securities Fund commenced operations in 2007 and had provided a satisfactory level of performance to investors in light of its investment policies and prevailing market conditions. The Trustees believed that each of the other Funds had provided investment performance within a competitive range for long-term investors, and that the Investment Adviser’s continued management would benefit each Fund and its shareholders.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

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

Costs of Services Provided and Competitive Information

The Independent Trustees considered the contractual fee rates payable by each Fund under the Management Agreements. In this regard, the Trustees considered information on the services rendered by the Investment Adviser to the Funds, which included both advisory and administrative services that were directed to the needs and operations of the Funds as registered mutual funds.

In particular, the Trustees reviewed analyses prepared by the Outside Data Provider regarding the expense rankings of the Funds. The analyses provided a comparison of the Funds’ management fees and breakpoints to relevant peer groups and category universes; an expense analysis which compared each Fund’s expenses to a peer group and a category universe; and a five-year history (or, in the case of Funds that commenced investment operations within a shorter period, since the year in which it commenced operations), comparing each Fund’s expenses to the category averages. The analyses also compared each Fund’s transfer agency fees, custody and accounting fees, distribution fees, other expenses and fee waivers/reimbursements to those of other funds in the 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 Funds.

In addition, the Independent Trustees considered the Investment Adviser’s voluntary undertakings to limit the Funds’ “other expenses” ratios (excluding certain expenses) to certain specified levels and to waive a portion of its management fee payable by the Enhanced Income Fund and Inflation Protected Securities Fund, and the voluntary undertaking of Goldman, Sachs & Co. (“Goldman Sachs”) to waive a portion of the Rule 12b-1 fees payable by the Short Duration Government Fund’s Class B Shares. They also considered comparative fee information for services provided by the Investment Adviser to institutional accounts and information that indicated that services provided to the Funds differed in various significant respects from the services provided to 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 Funds’ shareholders invested in the Funds in part because of the Funds’ 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 Fund shares if they believe that the Fund fees and expenses are too high or if they are dissatisfied with the performance of the Fund.

Profitability

The Independent Trustees reviewed the Investment Adviser’s revenues and pre-tax profit margins with respect to the Trust and each of the Funds. In this regard the Independent Trustees reviewed, among other things, profitability analyses and summaries, revenue and expense schedules by Fund 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 Fund were provided for 2007 and 2006 (2007 only for the Inflation Protected Securities Fund), 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 information on the reported pre-tax profit margins earned by certain other asset management firms.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

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

Economies of Scale

The Independent Trustees also considered the breakpoints in the fee rate payable under the Management Agreements for each of the Funds at the following annual percentages of the average daily net assets of the Funds:


	First $1 Billion		Next $1 Billion		Next $3 Billion		Next $3 Billion		Over $8 Billion

Enhanced Income Fund		0.25%		0.23%		0.22%		0.22%		0.22%
Government Income Fund		0.54%		0.49%		0.47%		0.46%		0.45%
Inflation Protected Securities Fund		0.33%		0.30%		0.28%		0.27%		0.26%
Short Duration Government Fund		0.50%		0.45%		0.43%		0.42%		0.41%
Ultra-Short Duration Government Fund		0.40%		0.36%		0.34%		0.33%		0.32%

The breakpoints at the $5 and $8 billion asset levels were considered by the Independent Trustees at the May Committee meeting and were approved by the Trustees at the Annual Contract Meeting. These additional breakpoints had been proposed by the Investment Adviser to further share potential economies of scale, if any, with the Funds and their shareholders as assets under management reach those asset levels. In approving these fee breakpoints, the Independent Trustees considered the Investment Adviser’s potential economies of scale in managing each Fund, and whether the Funds and their shareholders were participating in the benefits of those economies. In this regard, the Independent Trustees considered the amounts of assets in the Funds; the information provided by the Investment Adviser relating to the costs of the services provided by the Investment Adviser and its affiliates and the profits realized by them; information comparing fee rates charged by the Investment Adviser with fee rates charged by other, unaffiliated investment managers to other mutual funds; and the Investment Adviser’s voluntary undertakings to limit fees and “other expenses” to certain amounts. Upon reviewing these matters at the Annual Contract Meeting in 2008, the Independent Trustees concluded that the fee breakpoints represented a means of ensuring that benefits of scalability would be passed along to shareholders at the specified asset levels.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

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

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 Funds as stated above, including: (a) transfer agency fees received by Goldman Sachs; (b) futures commissions earned by Goldman Sachs for executing futures transactions on behalf of the Funds; (c) trading efficiencies resulting from aggregation of orders of the Funds with those for other funds or accounts managed by the Investment Adviser; (d) the Investment Adviser’s ability to leverage the infrastructure designed to service the Funds on behalf of its other clients; (e) the Investment Adviser’s ability to cross-market other products and services to Fund shareholders; (f) Goldman Sachs’ retention of certain fees as Fund Distributor; 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 Funds.

Other Benefits to the Funds and Their Shareholders

The Independent Trustees also noted that the Funds 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 Funds with those of other funds or accounts managed by the Investment Adviser; (b) improved servicing and pricing from vendors because of the volume of business generated by the Investment Adviser and its affiliates; (c) improved servicing and pricing from broker-dealers because of the volume of business generated by the Investment Adviser and its affiliates; (d) the Investment Adviser’s ability to negotiate favorably with derivatives counterparties as a result of the size and reputation of the Goldman Sachs organization; (e) the advantage received from the Investment Adviser’s knowledge and experience gained from managing other accounts and products; and (f) the Investment Adviser’s ability to hire and retain qualified personnel to provide services to the Funds because of the reputation of the Goldman Sachs organization.

Conclusion

In connection with their consideration of the Management Agreements, 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 of the Funds were reasonable in light of the services provided to it by the Investment Adviser, the Investment Adviser’s costs and each Fund’s current and reasonably foreseeable asset levels, and that the Management Agreements should be approved and continued with respect to each Fund until June 30, 2009.

FUNDS PROFILE

Goldman Sachs Funds

Goldman Sachs is a premier financial services firm, known since 1869 for creating thoughtful and customized investment solutions in complex global markets.

Today, the Investment Management Division of Goldman Sachs serves a diverse set of clients worldwide, including private institutions, public entities and individuals. With portfolio management teams located around the world — and $758 billion in assets under management as of September 30, 2008 — our investment professionals bring firsthand knowledge of local markets to every investment decision, making us one of the few truly global asset managers.

GOLDMAN SACHS FUNDS

In building a globally diversified portfolio, you can select from more than 80 Goldman Sachs Funds and gain access to investment opportunities across borders, investment styles, asset classes and security capitalizations.


Money Market¹ Fixed Income §n Enhanced Income Fund §n Ultra-Short Duration Government Fund §n Short Duration Government Fund §n Short Duration Tax-Free Fund §n California AMT-Free Municipal Fund §n New York AMT-Free Municipal Fund §n Municipal Income Fund §n Government Income Fund §n Inflation Protected Securities Fund §n U.S. Mortgages Fund §n Core Fixed Income Fund §n Core Plus Fixed Income Fund §n Investment Grade Credit Fund §n Global Income Fund §n High Yield Municipal Fund §n High Yield Fund §n Emerging Markets Debt Fund §n Local Emerging Markets Debt Fund		Domestic Equity §n Balanced Fund §n Growth and Income Fund §n Structured Large Cap Value Fund §n Large Cap Value Fund §n Structured U.S. Equity Fund §n Structured U.S. Equity Flex Fund §n Structured Large Cap Growth Fund §n Capital Growth Fund §n Strategic Growth Fund §n All Cap Growth Fund §n Concentrated Growth Fund §n Tollkeeper Fund^SM §n Mid Cap Value Fund §n Growth Opportunities Fund §n Small/Mid Cap Growth Fund §n Structured Small Cap Equity Fund §n Structured Small Cap Value Fund §n Structured Small Cap Growth Fund §n Small Cap Value Fund Fund of Funds²§n Asset Allocation Portfolios §n Income Strategies Portfolio §n Satellite Strategies Portfolio §n Enhanced Dividend Global Equity Portfolio §n Tax-Advantaged Global Equity Portfolio		Retirement Strategies² International Equity §n Structured International Equity Fund §n Structured International Equity Flex Fund §n Strategic International Equity Fund §n Concentrated International Equity Fund §n Structured International Small Cap Fund §n International Small Cap Fund §n Asia Equity Fund §n Structured Emerging Markets Equity Fund §n Emerging Markets Equity Fund §n Concentrated Emerging Markets Equity Fund §n BRIC Fund (Brazil, Russia, India, China) Specialty²§n U.S. Equity Dividend and Premium Fund §n International Equity Dividend and Premium Fund §n Structured Tax-Managed Equity Fund §n Structured International Tax-Managed Equity Fund §n Real Estate Securities Fund §n International Real Estate Securities Fund §n Commodity Strategy Fund §n Absolute Return Tracker Fund


¹	An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Funds.

²	Individual Funds within the Fund of Funds, Retirement Strategies and Specialty categories will have various placement on the risk/return spectrum and may have greater or lesser risk than that indicated by the placement of the general Fund of Funds, Retirement Strategies or Specialty category.

The Goldman Sachs Tollkeeper Fund^SM is a registered service mark of Goldman, Sachs & Co.


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

Visit our Web site at www.goldmansachsfunds.com to obtain the most recent month-end returns.

Goldman Sachs Asset Management, L.P. 32 Old Slip, 32nd Floor, New York, New York 10005

The reports concerning the Funds included in this shareholder report may contain certain forward-looking statements about the factors that may affect the performance of the Funds in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Funds, 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 Funds. Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in portfolio management strategies from those currently expected to be employed.

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how a Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (I) without charge, upon request by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders); and (II) on the Securities and Exchange Commission Web site at http://www.sec.gov.

The Funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q will become available on the SEC’s website at http://www.sec.gov within 60 days after the Funds’ first and third fiscal quarters. When available, the Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. and information on the operation of the Public Reference Room may also be obtained by calling 1-800-SEC-0330. When available, Form N-Q may be obtained upon request and without charge by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders).

Holdings and allocations shown may not be representative of current or future investments. Holdings and allocations may not include the Funds’ entire investment portfolio, which may change at any time. Fund holdings should not be relied on in making investment decisions and should not be construed as research or investment advice regarding particular securities. The economic and market forecasts presented herein have been generated by GSAM for informational purposes as of the date of this presentation. They are based on proprietary models and there can be no assurance that the forecasts will be achieved.

This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus. Please consider a Fund’s objectives, risks, and charges and expenses, and read the Prospectus carefully before investing. The Prospectus contains this and other information about the Funds.


ITEM 2.		CODE OF ETHICS.

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

	(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.

		Not applicable.


ITEM 8.		PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

		Not applicable.


ITEM 9.		PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

		Not applicable.


ITEM 10.		SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees.


ITEM 11.		CONTROLS AND PROCEDURES.

	(a)		The registrant’s principal executive and principal financial officers, or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934, as amended.

	(b)		There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.


ITEM 12.		EXHIBITS.

(a)(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:				December 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:				December 5, 2008

By:				/s/ John M. Perlowski

				John M. Perlowski
				Treasurer/Principal Financial Officer
				Goldman Sachs Trust

Date:				December 5, 2008

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