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



			Single Sector Fixed Income
			Emerging Markets Debt
			High Yield
			Investment Grade Credit
			Local Emerging Markets Debt
			U.S. Mortgages

Goldman Sachs Single Sector Fixed Income Funds


n	GOLDMAN SACHS EMERGING MARKETS DEBT FUND

n	GOLDMAN SACHS HIGH YIELD FUND

n	GOLDMAN SACHS INVESTMENT GRADE CREDIT FUND

n	GOLDMAN SACHS LOCAL EMERGING MARKETS DEBT FUND

n	GOLDMAN SACHS U.S. MORTGAGES FUND

TABLE OF CONTENTS


Principal Investment Strategies and Risks		1
Investment Process		3
Letters to Shareholders and Performance Summaries		4
Schedules of Investments		26
Financial Statements		64
Notes to the Financial Statements		72
Financial Highlights		90
Other Information		100


NOT FDIC-INSURED	May Lose Value	No Bank Guarantee

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

Principal Investment Strategies and Risks

The Emerging Markets Debt Fund invests primarily in fixed income securities of issuers located in emerging countries. 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 majority of the countries in which the Fund invests have sovereign ratings that are below investment grade or are unrated. High yield, lower rated securities involve greater price volatility and present greater risks than higher rated fixed income securities. Fixed income securities of emerging countries are less liquid and are subject to greater price volatility and will be subject to the risks of currency fluctuations and sudden economic or political developments. At times, the Fund may be unable to sell certain of its portfolio securities without a substantial drop in price, if at all. The securities markets of emerging countries have less government regulation and are subject to less extensive accounting and financial reporting requirements than the markets of more developed countries. The Fund is also subject to the risk that the issuers of sovereign debt or the government authorities that control the payment of debt may be unable or unwilling to repay principal or interest when due. The Fund may also engage in foreign currency transactions for hedging purposes (including cross hedging) or for speculative purposes. Forward foreign currency exchange contracts are subject to the risk that the counterparty to the contract will default on its obligations. The Fund may make substantial investments in derivative instruments, including options, financial futures, Eurodollar futures contracts, swaps, option 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 Fund may concentrate its investments in particular countries or regions and may be subject to greater losses than if it were less concentrated in a particular country or region. The Fund is non-diversified and may invest more of its assets in fewer issuers than diversified funds and may be more susceptible to adverse developments affecting any single issuer held in its portfolio and may be susceptible to greater losses because of these developments.

The High Yield Fund invests primarily in high-yield, fixed income securities that, at the time of purchase, are non-investment grade securities. The Fund’s investments in fixed income securities are subject to the risks associated with debt securities including credit, liquidity and interest rate risk. The Fund invests in high yield, fixed income securities that, at the time of purchase, are non-investment grade. High yield, lower rated securities involve greater price volatility and present greater risks than higher rated fixed income securities. The Fund may also invest in foreign issuers who are denominated in currencies other than the U.S. dollar and in securities of issuers located in emerging countries denominated in any currency. The Fund’s foreign and emerging market investments 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. At times, the Fund may be unable to sell certain of its portfolio securities without a substantial drop in price, if at all. The Fund may also engage in foreign currency transactions for hedging purposes (including cross hedging) or for speculative purposes. 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 Investment Grade Credit Fund invests primarily in investment grade fixed income 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 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 invest in foreign and emerging markets 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 political developments. At times, the Fund may be unable to sell certain of its portfolio securities without a substantial drop in price, if at all. The Fund may also engage in foreign currency transactions for hedging purposes (including cross hedging) or for speculative purposes. Forward foreign currency exchange contracts are subject to the risk that the counterparty to the contract will default on its obligations. The Fund may make substantial investments in derivative instruments, including options, financial futures, Eurodollar futures contracts, swaps, option 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 Local Emerging Markets Debt Fund invests primarily in sovereign and corporate debt of issuers located in emerging countries where such debt securities are denominated in the local currency of such emerging countries. 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 majority of the countries in which the Fund invests have sovereign ratings that are below investment grade or are unrated. High yield, lower rated securities involve greater price volatility and present greater risks than higher rated fixed income securities. Fixed income securities of emerging countries are less liquid and are subject to greater price volatility and will be subject to the risks of currency fluctuations and sudden economic or political developments. Since the Fund may invest in non-investment

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

grade fixed income securities and emerging country issuers, it especially will be subject to the risk that the liquidity of particular portfolio securities will shrink or disappear suddenly and without warning as a result of adverse economic, market or political events, or adverse investor perceptions, whether or not accurate. At times, the Fund may be unable to sell certain of its portfolio securities without a substantial drop in price, if at all. The securities markets of emerging countries have less government regulation and are subject to less extensive accounting and financial reporting requirements than the markets of more developed countries. The Fund is also subject to the risk that the issuers of sovereign debt or the government authorities that control the payment of debt may be unable or unwilling to repay principal or interest when due. The Fund may also engage in foreign currency transactions for hedging purposes (including cross hedging) or for speculative purposes. Forward foreign currency exchange contracts are subject to the risk that the counterparty to the contract will default on its obligations. The Fund may make substantial investments in derivative instruments, including options, financial futures, Eurodollar futures contracts, swaps, option 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 Fund is non-diversified and may invest more of its assets in fewer issuers than diversified funds and may be more susceptible to adverse developments affecting any single issuer held in its portfolio and may be susceptible to greater losses because of these developments.

The U.S. Mortgages Fund invests primarily in securities representing direct or indirect interests in or that are collateralized by mortgage-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’s investment in mortgage-backed securities (MBS) is subject to prepayment risk, the risk that in a declining interest rate environment the Fund’s underlying mortgages may be prepaid, causing the Fund to have to reinvest at lower interest rates. This risk may result in greater share price volatility than a fixed income fund not invested in MBS. 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 may make substantial investments in derivative instruments, including options, financial futures, Eurodollar futures contracts, swaps, option 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 SINGLE SECTOR FIXED INCOME FUNDS

What Differentiates the Goldman Sachs Asset Management 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

Emerging Markets Debt Fund

Dear Shareholder:

This report provides an overview on the performance of the Goldman Sachs Emerging Markets Debt 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, Class C and Institutional Shares generated cumulative total returns, without sales charges, of –7.55%, –7.92% and –7.47%, respectively. These returns compare to the –5.88% cumulative total return of the Fund’s benchmark, the J.P. Morgan EMBI Global Diversified Index (with dividends reinvested), over the same time period.

The Fund posted a negative return during the reporting period and underperformed its benchmark. This was largely due to the selection of certain external and local market debt securities. Slightly offsetting this was the Fund’s underweight country exposure to select countries.

Market Review

The JP Morgan EMBI Global Diversified Index returned –5.88% over the six month period ended September 30, 2008. Emerging market spreads widened 116 basis points versus U.S. Treasuries to close the period at 449 basis points. Emerging markets debt came under a lot of pressure during the six months reporting period as deleveraging continued in the midst of the escalating global credit crisis. A series of unprecedented and industry-changing events occurred toward the end of the period that spread fear and shock throughout global financial markets, causing an extreme flight to quality. To list just a few events: Fannie Mae and Freddie Mac entered conservatorship, Lehman Brothers filed for bankruptcy, AIG was rescued by the Federal Reserve Board (the “Fed”), Merrill Lynch agreed to merge with Bank of America, Morgan Stanley and Goldman Sachs were converted into bank holding companies, Washington Mutual filed for bankruptcy and was later acquired by JP Morgan, Wachovia’s banking operations were acquired by Well Fargo and several major European banks were rescued by large monetary injections from both the public and private sectors. In light of these events, investors became extremely risk averse, leading to a broad and indiscriminate sell-off of riskier assets, including emerging markets debt.

INVESTMENT OBJECTIVE

The Fund seeks a high level of total return consisting of income and capital appreciation.

PORTFOLIO RESULTS

Factors Affecting Performance

In terms of county exposure relative to the benchmark, the Fund’s underweight to Venezuela contributed positively to performance as it underperformed the benchmark. This was offset by the Fund’s overweight to Argentina, which detracted from performance. Security selection of Argentine local debt was the primary detractor from excess returns for the period while Hungarian local debt modestly contributed to performance. In the hard currency (U.S. dollar denominated) debt space, the main contributor to performance was security selection of Venezuelan bonds while the primary detractor was security selection of Indonesian and Russian bonds. The Fund’s active currency strategy had a negative impact on performance, especially its exposure to currencies in Latin America and its underweight exposure to the U.S. dollar as the value of the U.S. dollar appreciated 10.6% over the reporting period. However, this was slightly offset by the momentum factor in our active currency strategy. Momentum is one of the ways we seek to manage risk within our active currency strategy; it is meant to capitalize on medium-term persistence that currencies have historically exhibited. By persistence, we’re referring to the trend that past currency return patterns may potentially indicate their future movements. During the reporting period, the Fund’s portfolio benefited from being positioned to take advantage of this persistence. In short, we generally overweighted currencies that had been doing well and underweighted those currencies that have been doing poorly.

Outlook

Fundamentally, we continue to see a favorable policy environment for emerging market debt, due to supportive governmental macroeconomic stabilization programs and improved debt management efforts. We believe these should help buffer the challenges associated with significant global growth deceleration and a decline in capital flows. We believe that the long term technical picture also shines favorably on the asset class. For example, strategic inflows remain strong as investor demand is high and broadening, while net supply remains favorable as emerging market countries are paying down more debt than they are issuing. We continue to have confidence in the asset class despite recent spread widening. Fundamentally, countries continue to benefit from strong balance sheets and the asset class remains structurally sound. Increased volatility in emerging market debt is not uncommon in times of global risk aversion, where all spread sectors are affected. We believe that certain securities have become attractively valued in the near term but we continue to be cognizant of market events and will prudently add or decrease exposure to the emerging market debt asset class based on fundamental valuations and/or market technicals.

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 of 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 Global Fixed Income Investment Management Team

October 20, 2008

FUND BASICS

Emerging Markets Debt Fund

as of September 30, 2008

PERFORMANCE REVIEW


April 1, 2008–	Fund Total Return			J.P. Morgan EMBI Global			30-Day
September 30, 2008	(based on NAV¹)			Diversified Index²			Standardized Yield³


Class A		-7.55	%		-5.88	%		7.31	%
Class C		-7.92			-5.88			6.87
Institutional		-7.47			-5.88			8.04


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 J.P. Morgan EMBI Global Diversified Index is an unmanaged index of debt instruments of 31 emerging countries. The Index figures do 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			Since Inception			Inception Date


Class A		-10.13	%		7.70	%		8.11	%	8/29/03
Class C		-7.66			N/A			0.20		9/29/06
Institutional		-5.69			9.09			9.49		8/29/03

⁴

The Standardized Total Returns are average annual total returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a 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 Shares do not involve a sales charge, such a charge is not applied to their Standardized Total Returns. The Fund will charge a 2% redemption fee on the redemption of shares (including by exchange) held for 30 calendar days or less. The performance figures do not reflect the deduction of the redemption fee. If reflected, the redemption fee would reduce the performance quoted.

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.

EXPENSE RATIOS⁵


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


Class A		1.22	%		1.36	%
Class C		1.97			2.11
Institutional		0.88			1.02

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.

FUND BASICS

TOP 10 COUNTRY ALLOCATION⁶


	Percentage of Net Assets

	as of 9/30/08			as of 3/31/08


Russia		10.1	%		7.4	%
Turkey		8.4			7.1
Argentina		7.5			8.3
Brazil		7.5			4.8
Mexico		5.8			6.0
Philippines		5.8			5.0
Indonesia		5.7			4.7
Venezuela		4.7			4.6
Colombia		4.4			—
Uruguay		4.0			4.8


⁶	The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets.

PORTFOLIO RESULTS

High Yield Fund

Dear Shareholder:

This report provides an overview on the performance of the Goldman Sachs High Yield 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 −6.52%, −6.88%, −6.88%, −6.50%, −6.61%, −6.55% and −6.64%, respectively. These returns compared to the −6.77% cumulative total return of the Fund’s benchmark, the Lehman Brothers U.S. Corporate High Yield Bond Index −2% Issuer Capped (with dividends reinvested), over the same time period.

The high yield market has been very challenging since the collapse of Lehman Brothers in September. The Fund performed largely in line with its benchmark given the contributions from its underweights to Finance and Automotives, which offset its overweight to Europe which underperformed.

Market Review

Volatile equity markets and continued negative news from financials weighed on the sentiment in high yield over the six month period that ended September 30, 2008. Specifically, Lehman Brothers’ bankruptcy on September 15 triggered the demise of several financial institutions in the U.S. and Europe, resulting in severe turmoil in the financial markets.

Risky assets such as high yield bonds and equities plunged in the last two weeks of September with the higher-risk CCC-rated bonds hardest hit, returning −8.5% over the last six months. The Automotives sector fell over 23%, led by the drop of GMAC bonds. Its bonds weakened significantly due to liquidity concerns surrounding the finance company’s ability to fund itself in the asset-backed market. The recession in Gaming persisted as that sector came under additional pressure due to weak Las Vegas attendance numbers and company results.

As is typical in times of distress, single-B rated bond spreads widened meaningfully and ended the reporting period more than 1,000 basis points over Treasuries. They have since widened further to almost 1450 basis points in October. Investors’ fear that annual defaults could surge over the next several years, with recently issued aggressively structured leveraged buyouts particularly vulnerable to restructuring.

INVESTMENT OBJECTIVE

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

PORTFOLIO RESULTS

Investment Strategies

In seeking to meet the Fund’s investment objective, we invest, under normal circumstances, at least 80% of the Fund’s net assets plus any borrowings for investment purposes in high yield, fixed income securities that, at the time of purchase, are non-investment grade. The Fund may invest in obligations of domestic and foreign issuers, which are denominated in currencies other than the U.S. dollar. The Fund typically uses currency forwards for the purpose of hedging currency exposure.

Factors Affecting Performance

As discussed, the Fund’s European exposure negatively impacted its performance, as Europe failed to perform as well as the broader U.S. high yield market. The Fund’s underweight to higher quality BB bonds also detracted from performance as investors’ flight-to-quality put pressure on riskier companies. Performance benefited, however, from the Fund’s continued underweight to Automotive and Financials.

Outlook

Since the collapse of Lehman Brothers, there has been a severe repricing of credit risk. Today, the high yield market yields over 18% and nearly half of the bonds are trading at distressed levels. The market is pricing defaults spiking to 15% annually in the next several years. Historically, these types of market conditions provide investors, who can withstand the volatility, with attractive medium-term return opportunities.

Goldman Sachs High Yield Investment Management Team

October 27, 2008

FUND BASICS

High Yield Fund

as of September 30, 2008

PERFORMANCE REVIEW


				Lehman Brothers
				U.S. Corporate
	Fund Total Return			High Yield Bond Index			30-Day
April 1, 2008–September 30, 2008	(based on NAV)¹			2% Issuer Capped²			Standardized Yield³


Class A		-6.52	%		-6.77	%		9.78	%
Class B		-6.88			-6.77			9.43
Class C		-6.88			-6.77			9.43
Institutional		-6.50			-6.77			10.64
Service		-6.61			-6.77			10.08
Class IR		-6.55			-6.77			10.52
Class R		-6.64			-6.77			10.01


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. Corporate High Yield Bond Index−2% Issuer Capped, an unmanaged index, covers the universe of U.S. dollar denominated, non-convertible, fixed rate, non-investment grade debt. Index holdings must have at least one year to final maturity, at least $150 million par amount outstanding, and be publicly issued with a rating of Ba1 or lower. The Index figures do 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		-16.24	%		3.52	%		4.72	%		4.42	%	8/1/97
Class B		-17.34			3.26			4.41			4.06		8/1/97
Class C		-13.86			3.69			4.43			4.10		8/15/97
Institutional		-12.15			4.82			5.59			5.23		8/1/97
Service		-12.49			4.31			5.05			4.70		8/1/97
Class IR		N/A			N/A			N/A			-10.62		11/30/07
Class R		N/A			N/A			N/A			-10.86		11/30/07

⁴

The Standardized 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 Total Returns. The Fund will charge a 2% redemption fee on the redemption of shares (including by exchange) held for 60 calendar days or less. The performance figures do not reflect the deduction of the redemption fee. If reflected, the redemption fee would reduce the performance quoted.

FUND BASICS

EXPENSE RATIOS⁵


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


Class A		1.08	%		1.09	%
Class B		1.83			1.84
Class C		1.83			1.84
Institutional		0.74			0.75
Service		1.24			1.25
Class IR		0.83			0.84
Class R		1.33			1.34

⁵

TOP 10 ISSUERS AS OF 9/30/08⁶


Company	% of Net Assets			Line of Business


HCA		1.8	%	Health Care–Services
Ford		1.7		Automotive
MGM Mirage		1.3		Gaming
Chesapeake Energy		1.1		Energy–Exploration & Production
Rexnord		1.1		Capital Goods
Sungard Data		1.1		Technology–Software/Services
Cablevision		1.0		Media–Cable
Sprint Nextel		0.9		Telecommunications–Cellular
Nielsen		0.9		Publishing
NRG Energy		0.9		Utilities–Electric


⁶	The top 10 issuers may not be representative of the Fund’s future investments.

TOP 10 INDUSTRY ALLOCATION⁷


	Percentage of Net Assets
	as of 9/30/08			as of 3/31/08


Gaming		4.9	%		6.5	%
Health Care–Services		4.2			4.1
Chemicals		3.9			4.6
Utilities–Electric		3.9			3.9
Packaging		3.6			4.2
Telecommunications–Cellular		3.5			3.3
Energy–Exploration & Production		3.1			2.8
Media–Cable		3.0			3.0
Building Materials		2.7			3.1
Publishing		2.5			3.7


⁷	The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets.

PORTFOLIO RESULTS

Investment Grade Credit Fund

Dear Shareholder:

This report provides an overview on the performance of the Goldman Sachs Investment Grade Credit 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 and Separate Account Institutional Shares generated cumulative total returns, without sales charges, of – 8.47%, – 8.39% and – 8.27%, respectively. These returns compare to the – 7.23% cumulative total return of the Fund’s benchmark, the Lehman Brothers U.S. Credit Index (with dividends reinvested), over the same time period.

The Fund underperformed its benchmark during the reporting period. This was, in part, due to our corporate security selection strategy during the third quarter, led by underperformance of our financial holdings. A lack of liquidity in the credit market and solvency issues led to back-to-back events of the Lehman Brothers bankruptcy, AIG bailout and Washington Mutual failure, resulting in a further decline in financials. Positioning to be overweight insurance and banks within the corporate sector relative to the benchmark also negatively affected returns. Additionally, the Fund’s mortgage selection strategy underperformed. This was mainly driven by continued turmoil in the U.S. housing market, as well as the sustained deleveraging from the financial sector. Losses were partially offset by gains in our duration strategy which outperformed early in the period, driven by our U.S. curve steepener position.

Market Review

Over the six-month reporting period, corporate credit experienced one of the worst periods in the history of the asset class as the credit crunch turned into a full-blown financial crisis, reshaping the banking landscape and leaving investors concerned of a global recession.

The macro-economic picture for developed economies continued to deteriorate as U.S. consumer demand and exports to the U.S. slowed and countries started to deleverage their local economies. The Federal Reserve Board (the “Fed”) held short-term interest rates steady at 2% through September 2008 to ease inflationary pressures. Elsewhere, the U.S. Treasury placed Fannie Mae and Freddie Mac under conservatorship and developed a $700 billion plan to rescue banks with exposure to illiquid assets. Additionally, the Treasury yield curve steepened over the period. The slower global growth outlook and easing of inflationary pressures towards the end of the period saw the market price in monetary policy easing by the Fed. In early October, after the reporting period ended, the Fed lowered short-term rates from 2.0% to 1.5%. Treasuries at the short end of the curve rallied sharply towards through September as concerns about financial failures and a slowdown in global growth overshadowed actions taken by the Fed and Treasury to restore market confidence.

After falling from earlier record wide levels, credit spreads initially moved wider during the reporting period, primarily driven by volatility in oil prices and uncertainty about the outlook within the financial sector. As the period progressed, credit continued to underperform, driven by poor technicals, negative company specific headlines and

PORTFOLIO RESULTS

generally light summer volumes. A lack of liquidity continued to be a pressing theme. September saw the virtual collapse of the existing financial system and unprecedented government intervention from countries across the world, led by the U.S. During the month of September we experienced these major events: (1) the failure and default of several large organizations, (2) the support of several large systemically important institutions, (3) the initial failure of the U.S. rescue package, (4) a large amount of capital raising by major U.S. financial companies, (5) amendments to certain U.S. tax rules, (6) guarantees of deposits and/or debt by sovereigns in Europe and (7) a wave of consolidation among financial companies in the U.S. and elsewhere.

Headlines primarily drove price action in the credit markets, but concerns remain about how much capital is still needed to offset losses, as well as how financials will be able to access non-government funding in the longer term. Meanwhile, the U.S. government was focused on quickly passing legislation to stop a full-scale meltdown of the financial system. As mentioned, the $700 billion bailout package initially failed in the House of Representatives on Sept 29th, sending the markets reeling and leaving the credit markets in limbo at the end of the reporting period. A revised bailout package was subsequently approved by Congress in early October.

INVESTMENT OBJECTIVE

The Fund seeks a high level total return consisting of capital appreciation and income that exceeds the total return of the Lehman Brothers U.S. Credit Index

Factors Affecting Performance

In terms of sector positioning, the Fund had overweights in financials, media-cable and pipelines, while holding underweights in consumer products, retail and pharmaceuticals. The Fund maintained a down-in-quality bias, reflected in its overweight to BBB-rated bonds. We generally avoided bond issuers with exposure to a cyclical economic slowdown, particularly retailers, as we believed they faced narrowing margin pressures as a result of a global growth slowdown and the recent rapid contraction in lending. Within financials, we added exposure based on attractive valuation, focusing primarily large, blue chip, well-diversified institutions. We felt there was a backstop from the government which could help debt holders should one of these institutions fail.

Outlook

After the dramatic events of September, we are cautious on investment grade corporate credit due to systemic issues including the uncertainty surrounding funding and the ultimate effectiveness of the Troubled Asset Relief Program (TARP). We are currently targeting a neutral sector risk position. As roughly half of the investment grade credit market is comprised of financials, the distress of many of those institutions and the lack of clarity regarding their exposure to the more toxic securities could weigh heavily on market returns. We think governments across the globe will continue to intervene to stabilize the markets but we do not think this will be a panacea. We would, therefore, expect additional financial failures to take place because there are number of firms that are legitimately insolvent. In terms of credit default rates, we expect them to increase markedly as we go into the first half of 2009. Assets are currently priced for extreme tail risk (i.e. for Lehman

PORTFOLIO RESULTS

Brothers or Washington Mutual type events of default). The financials are now in a slow process of balance sheet repair and delevering, which we expect to continue for the next two years. In the non-financial investment grade universe, we also anticipate defaults to start to increase through 2009, as weaker companies are unable to raise new debt and face the impact of economic slowdown on their balance sheets. Companies that are reliant on consumer spending are likely to be the first and potentially hardest hit. Therefore, in general, we would avoid all but the highest quality of those companies.

We expect the massive policy response to succeed in restoring liquidity to the credit markets, but we also believe the deepening of the credit crisis that occurred in September and thus far in October will have a profoundly negative effect on consumer and business confidence. We feel there will be large dispersion between performance of winners and losers within the investment grade credit market and remain focused on bottom-up selection as the cornerstone of added value over the medium-to long-term.

Goldman Sachs U.S. Fixed Income Investment Management Team

October 23, 2008

FUND BASICS

Investment Grade Credit Fund

as of September 30, 2008

PERFORMANCE REVIEW


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


Class A		-8.47	%		-7.23	%		6.18	%
Institutional		-8.39			-7.23			6.88
Separate Account Institutional		-8.27			-7.23			6.93


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. Credit Index is an unmanaged index which is unbundled into pure corporates (industrial, utility, and finance, including both U.S. and Non-U.S. corporations) and non-corporates (sovereign, supranational, foreign agencies, and foreign local governments). The Index figures do 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			Since Inception			Inception Date


Class A		-12.42	%		0.48	%	11/3/03
Institutional		-8.00			1.84		11/3/03
Separate Account Institutional		-7.87			1.89		11/3/03


⁴	The Standardized Total Returns are average annual total returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 4.5% for Class A Shares. Because Institutional and Separate Account Institutional Shares do not involve a sales charge, such a charge is not applied to their Standardized 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.

EXPENSE RATIOS⁵


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


Class A		0.76	%		0.95	%
Institutional		0.40			0.61
Separate Account Institutional		0.35			0.56

⁵

FUND BASICS

SECTOR ALLOCATIONS⁶

Percentage of Net Assets


⁶	The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets (excluding securities lending collateral, if any). Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.

⁷	Please refer to the table below for Top Ten Industry Allocations in the Corporate Bond sector.

TOP TEN INDUSTRY ALLOCATION


Percentage of Net Assets	as of 9/30/08			as of 3/31/08


Insurance		14.4	%		15.5	%
Banks		14.0			19.7
Real Estate Investment Trusts		11.7			11.4
Natural Gas		6.2			6.1
Financial		5.4			6.0
Media		5.2			3.3
Brokerage		4.7			8.1
Energy		4.6			3.6
Communications		3.9			4.2
Electric		3.3			3.7

PORTFOLIO RESULTS

Local Emerging Markets Debt Fund

Dear Shareholder:

This report provides an overview on the performance of the Goldman Sachs Local Emerging Markets Debt 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, Class C and Institutional Shares generated cumulative total returns, without sales charges, of –7.38%, –7.73% and –7.22%, respectively. These returns compare to the –2.36% cumulative total return of the Fund’s reference benchmark, the JPMorgan Government Bond Index — Emerging Markets Global Diversified Index (with dividends reinvested), over the same time period.

The Fund posted a negative return during the reporting period and underperformed its benchmark. The major detractors to performance included the Fund’s positioning of the U.S. dollar, while the contributors to performance included factors in the active currency strategy.

Market Review

JPMorgan Government Bond Index — Emerging Markets Global Diversified Index returned –2.36% over the six month period ended September 30, 2008. Like many other asset classes, emerging markets local debt did not escape unharmed from the volatility triggered by the ongoing global financial crisis. In general, emerging markets local debt has came under a lot of pressure as deleveraging continued in the midst of the escalating global credit crisis. A series of unprecedented and industry-changing events occurred toward the end of the reporting period that spread fear and shock throughout global financial markets, causing an extreme flight to quality. To list just a few events: Fannie Mae and Freddie Mac entered conservatorship, Lehman Brothers filed for bankruptcy, AIG was rescued by the Federal Reserve Board (the “Fed”), Merrill Lynch agreed to merge with Bank of America, Morgan Stanley and Goldman Sachs were converted into bank holding companies, Washington Mutual filed for bankruptcy and was later acquired by JP Morgan, Wachovia’s banking operations were acquired by Wells Fargo, and several major European banks were rescued by large monetary injections from both the public and private sectors. In light of these events, the emerging markets local debt performed poorly as there was an indiscriminate and broad sell-off of risky assets and investors were extremely risk averse during this financial crisis.

INVESTMENT OBJECTIVE

The Fund seeks a high level of total return consisting of income and capital appreciation.

Factors Affecting Performance

On a total return basis, contributors to performance included the Fund’s momentum factor in the active currency strategy, active currency exposure to currencies in emerging Europe and security selection of Colombian local market debt.

PORTFOLIO RESULTS

The momentum factor is one of the ways we seek to manage risk within our active currency strategy; it is meant to capitalize on medium-term persistence that currencies have historically exhibited. By persistence, we’re referring to the trend that past currency return patterns may potentially indicate their future movements. During the reporting period, the Fund’s portfolio benefited from being positioned to take advantage of this persistence. In short, we generally overweighted currencies that had been doing well and underweighted those currencies that have been doing poorly.

Detractors from performance included the Fund’s underweight exposure to the U.S. dollar, as the value of the U.S. dollar appreciated over the reporting period. In addition, the Fund’s overweight exposure to currencies with high interest rates and security selection of local market debt in Brazil and Indonesia was detrimental to performance.

Outlook

Despite the recent poor performance, we continue to have a positive outlook on the emerging local debt market asset class. Local markets have dramatically transformed in the last few years. This market has deepened and become more liquid, the investor base has grown and is more diversified and emerging market economies have undergone structural changes that promote macroeconomic stability and active debt management. Inflows to this assets class are consistent and stem from strategic investors. We think that these trends are enduring and should or can persist in the future.

There are two sources of potential positive performance that come from investing in emerging local market debt. The first source is expected foreign currency appreciation. We think that emerging market currencies are supported by current account surpluses and strong growth rates, which are not easily undermined and anchor valuations over the medium term. The second source is interest rate convergence. We believe that interest rates of emerging economies will decline due to falling inflation rates and less sovereign risks. Emerging market external spreads have already tightened dramatically over the last ten years and we expect local emerging market yields to follow this trend.

Goldman Sachs Global Fixed Income Investment Management Team

October 20, 2008

FUND BASICS

Local Emerging Markets Debt Fund

as of September 30, 2008

PERFORMANCE REVIEW


April 1, 2008–	Fund Total Return			J.P. Morgan GBI EM 30-Day			30-Day
September 30, 2008	(based on NAV¹)			Global Diversified Index²			Standardized Yield³


Class A		-7.38	%		-2.36	%		7.63	%
Class C		-7.73			-2.36			7.24
Institutional		-7.22			-2.36			8.47


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 J.P. Morgan GBI EM Global Diversified Index is an unmanaged index of debt instruments of 14 Emerging Countries. The Index figures do 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 ending 9/30/08

One Year

Since Inception

Inception Date

Class A

N/A

-12.36

2/15/08

Class C

N/A

-8.65

2/15/08

Institutional

N/A

-8.04

2/15/08


⁴	The Standardized 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 and the assumed contingent deferred sales charge for Class C Shares (1% if redeemed within 12 months of purchase). Because Institutional Shares do not involve a sales charge, such a charge is not applied to their Standardized Total Returns. The Fund will charge a 2% redemption fee on the redemption of shares (including by exchange) held for 30 calendar days or less. The performance figures do not reflect the deduction of the redemption fee. If reflected, the redemption fee would reduce the performance quoted.


	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.

EXPENSE RATIOS⁵


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


Class A		1.35	%		2.98	%
Class C		2.10			3.73
Institutional		1.01			2.64

⁵

FUND BASICS

TOP 10 COUNTRY ALLOCATION⁶


	Percentage of Net Assets

	as of 9/30/08			as of 3/31/08


United States⁷		28.9	%		36.9	%
Turkey		8.3			4.8
Nigeria		8.1			0.0
Hungary		7.4			6.3
Indonesia		6.7			2.9
Peru		6.6			3.7
Russia		6.5			4.3
Mexico		6.4			5.1
Poland		4.8			4.2
Egypt		4.2			1.8


⁶	The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets.


⁷	Includes 28.9%, as of 9/30/08, and 36.9%, as of 3/31/08, of short-term investments. Short-term investments include repurchase agreements.

PORTFOLIO RESULTS

U.S. Mortgages Fund

Dear Shareholder,

This report provides an overview on the performance of the Goldman Sachs U.S. Mortgages 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 and Separate Account Institutional Shares generated cumulative total returns, without sales charges, of –1.43%, –1.25% and –1.23%, respectively. These returns compare to the 0.50% cumulative total return of the Fund’s benchmark, the Lehman Brothers Securitized Index (with dividends reinvested), over the same time period.

Our security selection of non-agency-backed adjustable-rate mortgages (ARMs) was the largest detractor from the Fund’s performance versus the benchmark 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 mortgage-related asset-backed securities. Overall, the Fund’s term structure positioning (i.e. its positioning relative to our interest rate expectations) had a modestly positive impact on performance over the last six months.

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, provided 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 inflation 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 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

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 a high level of total return consisting of income and capital appreciation.

Factors Affecting Performance

A combination of top-down and bottom-up investment strategies impacted the Fund’s performance relative to its benchmark. At the security level, the primary detractor from performance, particularly over the latter half of the period, was the Fund’s holdings of high quality non-agency ARMs. While we are disappointed with Fund’s recent performance, we are confident in our positions, our process and our risk management. We believe that the Fund should continue to hold the non-agency ARM positions as these securities can offer a significant yield advantage and we feel they have the ability to recover in value during the intermediate- to long-term.

The Fund’s term structure positioning had a modestly positive impact on performance. Within our cross-sector strategies, we held an underweight commercial mortgage-backed security (CMBS) exposure due to negative market fundamentals. This benefited the Fund’s relative performance as the sector performed poorly versus Treasuries.

Outlook

Considering the severity of the financial crisis and the downturn in housing, U.S. economic growth has held up better than might have been expected thus far in 2008. Growth has been supported primarily by the strength of net exports and the surprising resilience of retail sales. However, we expect both of those sources of support to weaken in the coming months.

PORTFOLIO RESULTS

The government’s recent actions reinforce the credit of senior GSE debt. We believe this is a positive development for agency debentures and agency-guaranteed mortgage-backed securities (MBS). Despite an expected increase in supply, we believe the demand picture for agency MBS has improved due to increased GSE portfolio flexibility and an expected revival in overseas demand for agency MBS due to increased clarity in the relationship between GSEs and the U.S. Treasury. Additionally, the U.S. Treasury is available as the backstop (rather than the primary) buyer of agency MBS. We continue to believe there are attractive security selection opportunities within the sector. It is likely for principal prepayments to increase given our expectations for lower mortgage rates and increased refinancing options. The $700 billion TARP, in combination with the bailout of the GSEs in September, may shorten the time it will take for the U.S. housing market to stabilize. This could also reduce the probability of extreme negative housing scenarios through the reduction of mortgage rates and increased refinancing options for borrowers. However, much uncertainty remains surrounding the timing and implementation of the Treasury’s measures. Therefore, we expect to see ongoing volatility, particularly within the non-agency market, given heightened headline and liquidity concerns and overall shaken investor confidence. Nevertheless, we see attractive security selection opportunities in senior non-agency ARMs. We remain cautious on CMBS due to deteriorating fundamentals.

Goldman Sachs U.S. Fixed Income Investment Management Team

October 23, 2008

FUND BASICS

U.S. Mortgages Fund

as of September 30, 2008

PERFORMANCE REVIEW


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


Class A		-1.43	%		0.50	%		4.73	%
Institutional		-1.25			0.50			5.33
Separate Account Institutional		-1.23			0.50			5.38


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 Securitized Index is an unmanaged composite of asset-backed securities, collateralized mortgage-backed securities and fixed rate mortgage-backed securities. The Index figures do 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			Since Inception			Inception Date


Class A		-6.00	%		1.96	%		11/3/03
Institutional		-1.28			3.32			11/3/03
Separate Account Institutional		-1.13			3.38			11/3/03

⁴

The Standardized Total Returns are average annual total returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 4.5% for Class A Shares. Because Institutional and Separate Account Institutional Shares do not involve a sales charge, such a charge is not applied to their Standardized Total Returns.

EXPENSE RATIOS⁵


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


Class A		0.76	%		0.91	%
Institutional		0.40			0.57
Separate Account Institutional		0.35			0.52

⁵

FUND BASICS

SECTOR ALLOCATIONS⁶

Percentage of Net Assets

(U.S. MORTGAGES SECTOR ALLOCATION BAR CHART)


⁶	The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets (excluding securities lending collateral, if any). 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 are required to report to a government regulator, their assets are not explicitly guaranteed by the government and they otherwise operate similar to any other publicly traded company.

GOLDMAN SACHS EMERGING MARKETS DEBT FUND

Schedule of Investments

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Sovereign Debt Obligations – 77.4%


	Argentina – 7.5%
	Republic of Argentina (B-)^(a)
		ARS 2,594,832		2.000	%		01/03/10	$	785,666
	Republic of Argentina (B)
	$	3,330,000		7.000			03/28/11		2,490,932
		9,960,000		7.000			10/03/15		5,717,040
		ARS 3,673,355		2.000	^(a)		01/03/16		814,555
		EUR 645,640		1.200	^(b)		12/31/38		199,965
	$	1,530,000		1.330	^(b)		12/31/38		377,145
	Republic of Argentina (B/B3)^(a)
		6,462,500		3.127			08/03/12		4,658,647

									15,043,950


	Brazil – 4.5%
	Federal Republic of Brazil (BBB-/Ba1)
		2,970,000		6.000			01/17/17		2,866,050
		4,640,000		8.250			01/20/34		5,254,800
		1,000,000		7.125			01/20/37		1,030,000

									9,150,850


	Bulgaria – 0.6%
	Republic of Bulgaria (BBB+/Baa3)
		1,180,000		8.250			01/15/15		1,292,100


	Colombia – 3.7%
	Republic of Colombia (BBB-/Ba1)
		1,170,000		6.364	^(a)		03/17/13		1,199,250
		3,500,000		7.375			01/27/17		3,640,000
		830,000		8.375			02/15/27		921,300
		1,690,000		7.375			09/18/37		1,690,000

									7,450,550


	Dominican Republic – 1.7%
	Dominican Republic (B+/B2)
		3,653,824		9.040			01/23/18		3,443,729


	Ecuador^(b) – 1.2%
	Republic of Ecuador (B-/B3)
		3,475,000		10.000			08/15/30		2,502,000


	El Salvador – 1.1%
	Republic of El Salvador (BB+/Baa3)
		2,170,000		8.250			04/10/32		2,148,300


	Gabon^(c) – 0.8%
	Republic of Gabonese (BB-)
		1,680,000		8.200			12/12/17		1,528,800


	Georgia – 0.3%
	Republic of Georgia (B)
		570,000		7.500			04/15/13		501,600


	Ghana – 0.3%
	Republic of Ghana (B+)
		780,000		8.500			10/04/17		686,400


	Hungary – 1.8%
	Hungary Government Bond (BBB+/A2)
		HUF 720,260,000		6.500			06/24/19		3,683,110


	Indonesia – 3.6%
	Republic of Indonesia (BB-/Ba3)
		1,080,000		7.500			01/15/16		1,031,400
		600,000		6.625	^(c)		02/17/37		462,000
		680,000		7.750			01/17/38		595,000
		5,890,000		7.750	^(c)		01/17/38		5,153,750

									7,242,150


	Iraq – 1.1%
	Republic of Iraq
		3,290,000		5.800			01/15/28		2,154,950


	Israel – 0.2%
	State of Israel (A/A1)
		400,000		5.125			03/01/14		404,982


	Jamaica – 0.2%
	Government of Jamaica (B)
		440,000		8.000			06/24/19		402,600


	Korea – 0.6%
	Republic of Korea (A/A2)
		1,280,000		5.625			11/03/25		1,172,066


	Lebanon – 2.5%
	Republic of Lebanon MTN (B-/B3)
		190,000		10.250			10/06/09		195,700
	Republic of Lebanon MTN (B-)
		2,690,000		6.109	^(a)		11/30/09		2,629,475
		2,831,000		4.000			12/31/17		2,208,180

									5,033,355


	Malaysia – 1.9%
	Malaysia (A-/A3)
		3,520,000		7.500			07/15/11		3,859,843


	Mexico – 5.8%
	Mexican Fixed Rate Bonds (A+/Baa1)
		MXN 34,350,000		10.000			12/05/24		3,552,862
	Mexican Udibonos (A+/Baa1)
		23,674,875		3.500			12/14/17		2,085,902
	United Mexican States (BBB+/Baa1)
	$	290,000		5.625			01/15/17		283,040
		2,590,000		8.300			08/15/31		3,062,675
		2,530,000		7.500			04/08/33		2,764,025

									11,748,504


	Pakistan – 0.4%
	Islamic Republic of Pakistan (CCC+/B2)
		1,350,000		6.875	^(c)		06/01/17		607,500
		400,000		6.875			06/01/17		180,000

									787,500


	Panama – 1.7%
	Republic of Panama (BB+/Ba1)
		200,000		9.375	^(d)		04/01/29		248,000
		3,372,000		6.700			01/26/36		3,152,820

									3,400,820

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

GOLDMAN SACHS EMERGING MARKETS DEBT FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Sovereign Debt Obligations – (continued)
	Panama – (continued)

	Peru – 2.5%
	Republic of Peru (BBB-/Ba1)
	$	3,095,000		8.375	%		05/03/16	$	3,419,975
		1,840,000		6.550			03/14/37		1,692,800

									5,112,775


	Philippines – 5.8%
	Republic of Philippines (B1)
		3,025,000		7.500			09/25/24		3,146,000
	Republic of Philippines (BB-/B1)
		620,000		9.500	^(d)		10/21/24		747,100
		5,980,000		10.625			03/16/25		7,893,600

									11,786,700


	Russia^(b) – 5.5%
	Russian Federation (BBB+/Baa1)
		11,059,300		7.500			03/31/30		11,114,597


	Serbia^(b) – 0.7%
	Republic of Serbia (BB-)
		1,710,000		3.750			11/01/24		1,410,750


	South Africa – 1.0%
	Republic of South Africa (BBB+/Baa1)
		180,000		6.500			06/02/14		176,400
		2,210,000		5.875			05/30/22		1,889,550

									2,065,950


	Trinidad and Tobago – 1.4%
	Trinidad & Tobago (A-/Baa1)
		2,540,000		5.875	^(c)		05/17/27		2,501,900
		290,000		5.875			05/17/27		281,063

									2,782,963


	Turkey – 8.4%
	Republic of Turkey (BB-/Ba3)
		1,040,000		9.500			01/15/14		1,145,300
		6,810,000		6.750			04/03/18		6,367,350
		3,080,000		7.000			03/11/19		2,910,600
		3,320,000		7.375			02/05/25		3,129,100
		1,580,000		6.875			03/17/36		1,350,900
		2,440,000		7.250			03/05/38		2,122,800

									17,026,050


	Ukraine – 3.5%
	Ukraine Government (B+/B1)
		1,520,000		6.875			03/04/11		1,352,800
		1,000,000		6.385	^(c)		06/26/12		847,890
		980,000		6.385			06/26/12		813,400
		3,800,000		7.650			06/11/13		3,268,000
		1,160,000		6.580			11/21/16		864,200

									7,146,290


	Uruguay – 4.0%
	Republic of Uruguay (BB/B1)
		6,109,587		8.000			11/18/22		6,048,491
		2,230,000		7.625			03/21/36		2,107,350

									8,155,841


	Venezuela – 3.1%
	Republic of Venezuela (BB-/B2)
		7,470,000		6.000			12/09/20		4,108,500
		1,140,000		9.000			05/07/23		769,500
		1,420,000		9.250			05/07/28		958,500
		600,000		9.375			01/13/34		408,000

									6,244,500


	TOTAL SOVEREIGN DEBT OBLIGATIONS
	(Cost $171,563,905)							$	156,484,575




Corporate Obligations – 17.2%


	Bermuda – 0.6%
	Digicel Group Ltd. (Caa2)
	$	1,490,000		8.875	%		01/15/15	$	1,192,000


	Brazil – 1.1%
	Companhia Energetica de Sao Paulo (Ba2)
		BRL 1,025,939		9.750			01/15/15		511,567
	Independencia International Ltd. (B/B2)^(c)
	$	1,570,000		9.875			05/15/15		1,333,012
	RBS – Zero Hora Editora Jornalistica SA (BB)^(c)
		BRL 800,000		11.250			06/15/17		290,084

									2,134,663


	Colombia^(c) – 0.7%
	EEB International Ltd. (BB)
	$	690,000		8.750			10/31/14		690,000
	TGI International Ltd. (BB)
		760,000		9.500			10/03/17		767,883

									1,457,883


	Indonesia – 2.1%
	Majapahit Holding BV (BB-/Ba3)
		3,490,000		7.750			10/17/16		3,071,200
		1,310,000		7.875	^(c)		06/29/37		956,300
		360,000		7.875			06/29/37		262,800

									4,290,300


	Ireland^(c) – 0.9%
	TransCapital Invest Ltd. for OJSC AK Transneft (BBB+/A2)
		1,270,000		8.700			08/07/18		1,055,827
	VIP Finance Ireland Ltd. for OJSC Vimpel Communications (BB+/Ba2)
		1,180,000		9.125			04/30/18		837,800

									1,893,627


	Israel^(c) – 0.8%
	Israel Electric Corp. Ltd. (BBB+/Baa2)
		1,660,000		7.250			01/15/19		1,638,839


	Kazakhstan – 2.2%
	CenterCredit International BV (Ba1)
	KZT	232,000,000		8.250			09/30/11		1,431,920
	Kazkommerts International BV (BB/Ba1)
	$	600,000		7.875			04/07/14		354,000
	KazMunaiGaz Finance Sub BV (BBB-/Baa1)^(c)
		1,850,000		8.375			07/02/13		1,554,000

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

GOLDMAN SACHS EMERGING MARKETS DEBT FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Obligations – (continued)
	Kazakhstan – (continued)

	TuranAlem Finance BV (BB/Ba1)
	$	450,000		4.166	^(a)%		01/22/09	$	405,000
		1,260,000		8.000			03/24/14		680,400

									4,425,320


	Russia – 4.6%
	Evraz Group SA (BB-/Ba3)^(c)
		550,000		9.500			04/24/18		379,500
	Gazprom OAO (BBB/A3)
		990,000		9.625			03/01/13		978,862
	Gaz Capital SA (BBB/A3)^(c)
		1,970,000		8.146			04/11/18		1,723,750
	RSHB Capital SA for OJSC Russian Agricultural Bank (A3)^(c)
		800,000		7.750			05/29/18		607,360
	VTB Capital SA (BBB+/A2)^(d)
		5,040,000		6.875			05/29/18		3,754,800
		2,470,000		6.875	^(c)		05/29/18		1,840,150

									9,284,422


	South Africa – 0.9%
	Peermont Proprietary Global Ltd. (B/B3)
	EUR	1,910,000		7.750			04/30/14		1,720,895


	Trinidad and Tobago – 1.0%
	Petroleum Co. of Trinidad & Tobago Ltd. (BBB+/Baa2)
	$	1,030,000		6.000			05/08/22		963,956
	National Gas Co. of Trinidad & Tobago Ltd. (BBB+/A3)^(c)
		1,230,000		6.050			01/15/36		1,123,913

									2,087,869


	Ukraine – 0.1%
	Nak Naftogaz Ukrainy (B1)
		200,000		8.125			09/30/09		166,000


	United Arab Emirates^(a) – 0.6%
	Jafz Sukuk Ltd. (A+/A1)
	AED	5,400,000		3.291			11/27/12		1,250,344


	Venezuela – 1.6%
	Petroleos de Venezuela SA (BB-)
	$	4,090,000		5.250			04/12/17		2,188,150
		2,100,000		5.375			04/12/27		945,000

									3,133,150


	TOTAL CORPORATE OBLIGATIONS
	(Cost $40,957,938)							$	34,675,312




Credit Linked Notes^(c)(e) – 1.9%


	Brazil – 1.9%
	Federal Republic of Brazil
	BRL	2,700,000		6.000	%		05/19/15	$	2,166,215
	$	443,768		6.000			05/16/17		424,908


	BRL	1,000,000		6.000	%		05/17/45	$	1,208,200

									3,799,323


	TOTAL CREDIT LINKED NOTES
	(Cost $3,405,459)							$	3,799,323




Structured Note^(c)(f)(g) – 1.1%


	Republic of Turkey
	TRY	3,730,000		0.000	%		04/14/10	$	2,238,176

	(Cost $2,363,156)

	TOTAL INVESTMENTS – 97.6%
	(Cost $218,290,458)							$	197,197,386


	OTHER ASSETS IN EXCESS OF LIABILITIES – 2.4%								4,820,012


	NET ASSETS – 100.0%							$	202,017,398

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)		Coupon increases periodically based upon a predetermined schedule. Interest rate disclosed is that which is in effect at September 30, 2008.

(c)		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 form registration. Total market value of Rule 144A securities amounts to $ 29,699,581, which represents approximately 14.7% of net assets as of September 30, 2008.

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

(e)		The underlying security is issued by Barclays Bank PLC.

(f)		The underlying security is issued by Deutsche Bank Securities, Inc.

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

Security ratings disclosed, if any, are issued by Standard & Poor’s/Moody’s Investors Service. A brief description of the ratings is available in the Fund’s Statement of Additional Information.




Investment Abbreviations:
CETIP	—	Central of Custody and Settlement of Private Bonds
LIBOR	—	London Interbank Offered Rate
MTN	—	Medium-Term Note

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

GOLDMAN SACHS EMERGING MARKETS DEBT FUND

ADDITIONAL INVESTMENT INFORMATION

FORWARD FOREIGN CURRENCY CONTRACTS — At September 30, 2008, the Fund had outstanding forward foreign currency exchange contracts, both to purchase and sell foreign currencies:


Open Forward Foreign
Currency Contracts	Contract	Expiration	Value on		Current		Unrealized
with Unrealized Gain	Type	Date	Settlement Date		Value		Gain

Brazilian Real	Sale	11/04/08	$	3,274,872	$	2,769,763	$	505,109
Euro	Sale	10/31/08		2,167,534		2,089,961		77,573
Hungarian Forint	Sale	10/16/08		4,002,490		3,817,255		185,235
Malaysian Ringgit	Sale	11/04/08		2,220,720		2,193,755		26,965
Mexican Peso	Sale	10/17/08		9,022,314		8,531,024		491,290
Taiwan Dollar	Sale	11/04/08		2,281,712		2,196,323		85,389


TOTAL							$	1,371,561


Open Forward Foreign
Currency Contracts	Contract	Expiration	Value on		Current		Unrealized
with Unrealized Loss	Type	Date	Settlement Date		Value		Loss

Brazilian Real	Purchase	11/04/08	$	2,309,600	$	2,189,390	$	(120,210	)
Malaysian Ringgit	Purchase	11/04/08		2,319,896		2,193,755		(126,141	)
Mexican Peso	Purchase	10/17/08		3,111,206		3,018,515		(92,691	)
Taiwan Dollar	Purchase	11/04/08		2,337,088		2,196,323		(140,765	)
Turkish Lira	Purchase	12/17/08		3,240,428		3,176,315		(64,113	)
Turkish Lira	Sale	12/17/08		3,096,700		3,176,315		(79,615	)
Yuan Renminbi	Purchase	11/04/08		2,529,788		2,476,065		(53,723	)


TOTAL							$	(677,258	)

FUTURES CONTRACT — At September 30, 2008, the following futures contract was open:

Number of

Settlement

Notional

Unrealized

Type

Contracts Long

Month

Value

Gain

5 Year U.S. Treasury Notes

125

December 2008

14,029,297

46,805

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

INTEREST RATE SWAP CONTRACTS

Rates Exchanged

Notional

Payments

Amount

Termination

received by

made by

Unrealized

Swap Counterparty

(000s)

Date

the Fund

Gain (Loss)

JPMorgan Securities, Inc.

BRL

18,000

01/04/10

13.120

Brazilian Interbank
Deposit Average

(108,781

)

42,000

01/04/10

14.010

Brazilian Interbank
Deposit Average

(39,729

)

49,000

01/03/11

14.940

Brazil CETIP
Interbank Deposit Rate

167,376

TOTAL

18,866

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

GOLDMAN SACHS EMERGING MARKETS DEBT FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


ADDITIONAL INVESTMENT INFORMATION (continued)

TOTAL RETURN SWAP CONTRACTS

Notional

Amount

Reference

Termination

Financing

Unrealized

Swap Counterparty

(000s)

Security

Date

Fee

Loss

Deutsche Bank Securities, Inc.

TRY 4,800

Turkish Government Bond
16.000% 03/07/12

03/12/09

TRY Central
Deposit Bank
+0.300%^#

(86,545

)

JPMorgan Securities, Inc.

1,700

Turkish Government Bond
0.000% 04/14/10

04/14/10

3 month LIBOR
+0.400%

(56,442

)

TOTAL

(142,987

)


#		The Fund receives semi-annual coupon payments in accordance with the swap contracts. On the termination date of the swap contracts, the Fund will either receive from or pay to the counterparty an amount equal to the net of the accrued financing fees and the value of the reference security subtracted from the original notional cost (notional multiplied by the price change of the reference security, converted to U.S. Dollars).

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

GOLDMAN SACHS HIGH YIELD FUND

Schedule of Investments

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – 83.1%


	Aerospace – 0.7%
	Esterline Technologies Corp. (B+/B1)
	$	2,020,000		7.750	%		06/15/13	$	2,009,900
	Mecachrome International, Inc. (B/Caa2)
		EUR 3,500,000		9.000			05/15/14		1,724,555
	Moog, Inc. (BB-/Ba3)
	$	210,000		6.250			01/15/15		198,975
	Sequa Corp. (B-/Caa2)^(a)
		10,000,000		11.750			12/01/15		8,650,000
		4,651,875		13.500	^(b)		12/01/15		4,035,502
	TransDigm, Inc. (B-/B3)
		7,250,000		7.750			07/15/14		6,815,000
	Vought Aircraft Industries, Inc. (CCC/Caa1)
		2,750,000		8.000			07/15/11		2,440,625

									25,874,557


	Agriculture – 0.6%
	Land O’ Lakes, Inc. (BB/Ba2)
		320,000		8.750			11/15/11		317,200
	Land O’ Lakes, Inc. (BBB-/Baa3)
		3,150,000		9.000			12/15/10		3,213,000
	National Beef Packing Co. LLC/NB Finance Corp. (B-/Caa1)
		2,750,000		10.500			08/01/11		2,722,500
	Pilgrim’s Pride Corp. (CCC/Caa1)
		6,000,000		7.625			05/01/15		3,780,000
	Pilgrim’s Pride Corp. (CCC-/Caa1)
		3,250,000		8.375			05/01/17		1,462,500
	Smithfield Foods, Inc. (BB-/Ba3)
		2,000,000		7.000			08/01/11		1,740,000
		2,875,000		7.750			05/15/13		2,386,250
		5,000,000		7.750			07/01/17		3,900,000
	Tereos Europe (BB/B1)
		EUR 4,000,000		6.375			04/15/14		3,463,189

									22,984,639


	Automotive – 2.0%
	FCE Bank PLC (B/B1)
		2,000,000		6.142	^(c)		09/30/09		2,336,949
		11,250,000		7.125			01/16/12		10,611,295
		12,000,000		7.125			01/15/13		11,825,523
	Ford Motor Co. (CCC/Caa1)
	$	9,000,000		7.450			07/16/31		3,780,000
		1,250,000		8.900			01/15/32		600,000
	Ford Motor Credit Co. LLC (B-/B1)
		4,735,000		7.875			06/15/10		3,515,737
		2,500,000		9.750			09/15/10		1,876,168
		1,250,000		7.375			02/01/11		827,111
		11,250,000		9.875			08/10/11		7,513,742
		14,375,000		7.250			10/25/11		9,120,795
		7,000,000		7.000			10/01/13		4,343,192
		9,250,000		8.000			12/15/16		5,907,027
	General Motors Corp. (B-/Caa2)
		EUR 2,250,000		7.250			07/03/13		1,425,398
	$	2,000,000		7.125			07/15/13		960,000
		2,000,000		7.700			04/15/16		860,000
		1,750,000		8.800	^(d)		03/01/21		717,500
		2,750,000		8.250			07/15/23		1,086,250


		EUR 2,000,000		8.375			07/05/33		1,069,928
		14,290,000		8.375			07/15/33		5,787,450

									74,164,065


	Automotive – Distributor – 0.1%
	Keystone Automotive Operations, Inc. (CCC/Caa2)
		4,000,000		9.750			11/01/13		2,120,000


	Automotive Parts – 1.2%
	Accuride Corp. (CCC/Caa1)
		3,000,000		8.500			02/01/15		1,770,000
	Allison Transmission, Inc. (B-/Caa1)^(a)
		4,500,000		11.000			11/01/15		3,825,000
		3,250,000		11.250	^(b)		11/01/15		2,632,500
	Lear Corp. Series B (B/B3)
		5,750,000		8.500			12/01/13		4,211,875
	Tenneco, Inc. (B/B3)
		3,250,000		8.625			11/15/14		2,600,000
	Tenneco, Inc. (BB-/B2)
		2,000,000		8.125			11/15/15		1,700,000
	The Goodyear Tire & Rubber Co. (BB-/B2)
		5,000,000		7.857			08/15/11		4,912,500
	The Goodyear Tire & Rubber Co. (BB-/Ba3)
		1,950,000		9.000			07/01/15		1,950,000
	TRW Automotive, Inc. (BB/Ba3)
		EUR 7,000,000		6.375			03/15/14		7,588,044
	$	6,000,000		7.000	^(a)		03/15/14		4,920,000
	United Components, Inc. (CCC+/Caa1)
		5,500,000		9.375			06/15/13		4,565,000
	Visteon Corp. (B-/Caa1)^(a)(d)
		2,069,000		12.250			12/31/16		1,241,400
	Visteon Corp. (B-/Caa2)
		802,000		8.250			08/01/10		665,660
		2,000,000		7.000			03/10/14		810,000

									43,391,979


	Building Materials – 2.7%
	ACIH, Inc. (D/Ca)^(a)(e)(f)
		6,000,000		11.500			12/15/12		720,000
	Associated Materials, Inc. (CCC/Caa2)^(e)
		13,500,000		11.250			03/01/14		8,775,000
	Associated Materials, Inc. (CCC+/B3)
		1,250,000		9.750			04/15/12		1,250,000
	Calcipar SA (BB+/Ba2)^(c)
		EUR 7,021,000		6.147			07/01/14		6,918,916
	CPG International, Inc. (B/B3)
	$	3,500,000		10.500			07/01/13		2,380,000
	Grohe Holding GMBH (B/B2)^(c)
		EUR 5,000,000		7.838			01/15/14		5,631,201
	Grohe Holding GMBH (CCC+/B3)
		24,000,000		8.625			10/01/14		24,664,662
	Heating Finance PLC (CCC/Caa3)
		GBP 2,000,000		7.875			03/31/14		995,596
	Interface, Inc. (B-/B3)
	$	2,000,000		9.500			02/01/14		2,040,000
	Legrand S.A. (BBB/Baa3)
		5,050,000		8.500			02/15/25		5,067,746

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

GOLDMAN SACHS HIGH YIELD FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – (continued)
	Building Materials – (continued)

	Masonite Corp.
	$	7,000,000		11.000	%		04/06/15	$	1,960,000
	Nortek, Inc. (B/B1)^(a)
		2,500,000		10.000			12/01/13		2,225,000
	Nortek, Inc. (CCC/Caa1)
		24,500,000		8.500			09/01/14		13,965,000
	NTK Holdings, Inc. (CCC/Caa2)^(e)
		11,000,000		10.750			03/01/14		4,785,000
	Owens Corning, Inc. (BBB-/Ba1)
		4,250,000		6.500			12/01/16		3,655,942
		1,750,000		7.000			12/01/36		1,390,695
	Panolam Industries International, Inc. (CCC+/Caa1)
		6,500,000		10.750			10/01/13		3,900,000
	PLY Gem Industries, Inc. (CCC+/Caa2)
		7,000,000		9.000			02/15/12		3,850,000
	Texas Industries, Inc. (BB-/Ba3)
		4,125,000		7.250			07/15/13		3,588,750
	Texas Industries, Inc. (BB-/Ba3)^(a)
		2,500,000		7.250			07/15/13		2,175,000
	Werner Holdings Co., Inc. (D/WR)^(f)
		3,000,000		10.000			11/15/07		300

									99,938,808


	Capital Goods – 2.4%
	Altra Industrial Motion, Inc. (B+/B1)
		4,000,000		9.000			12/01/11		4,120,000
	Baldor Electric Co. (B/B3)
		13,250,000		8.625			02/15/17		12,587,500
	Briggs & Stratton Corp. (BB-/Ba2)
		2,500,000		8.875			03/15/11		2,450,000
	General Cable Corp. (B+/B1)
		50,000		7.125			04/01/17		44,750
	Mueller Water Products, Inc. (B/B3)
		6,500,000		7.375			06/01/17		5,135,000
	Nexans SA (BB+)
		EUR 8,000,000		5.750			05/02/17		9,291,482
	RBS Global & Rexnord Corp. (B-/B3)
	$	20,150,000		9.500			08/01/14		18,941,000
		7,000,000		8.875			09/01/16		6,562,500
	RBS Global & Rexnord Corp. (CCC+/Caa1)
		15,000,000		11.750			08/01/16		14,250,000
	Sensata Technologies (B-/Caa1)
		9,750,000		8.000			05/01/14		8,336,250
	SPX Corp. (BB/Ba2)^(a)
		1,000,000		7.625			12/15/14		992,500
	Terex Corp. (B+/Ba3)
		4,150,000		8.000			11/15/17		3,797,250
	VAC Finanzierung GMBH (B/B3)
		EUR 4,000,000		9.250			04/15/16		3,829,217

									90,337,449


	Chemicals – 3.9%
	Basell AF SCA (CCC+/B3)
	$	19,250,000		8.375	%^(a)		08/15/15		9,625,000
		EUR 5,000,000		8.375			08/15/15		3,167,551
	Cognis GMBH (B/B1)^(c)
		12,500,000		6.958			09/15/13		14,429,953


	Cognis GMBH (CCC+/Caa1)
		EUR 8,000,000		9.500			05/15/14		9,178,858
	Compass Minerals International, Inc. (B+)^(e)
		4,661,000		12.000			06/01/13		4,905,702
	Equistar Chemicals LP (B/B3)
		2,000,000		7.550			02/15/26		1,220,000
	Hexion U.S. Finance Corp./Hexion Nova Scotia Finance ULC (B/B3)
		11,250,000		9.750			11/15/14		8,662,500
	Huntsman International LLC (B/B2)
		3,000,000		7.875			11/15/14		2,580,000
	Ineos Group Holdings PLC (B-/B3)
		EUR 14,250,000		7.875			02/15/16		10,582,259
	$	11,000,000		8.500	^(a)		02/15/16		5,885,000
	Invista (BB/Ba3)^(a)
		6,325,000		9.250			05/01/12		6,072,000
	KRATON Polymers LLC/Capital Corp. (CCC-/Caa1)
		7,975,000		8.125			01/15/14		4,625,500
	MacDermid, Inc. (CCC+/Caa1)^(a)
		7,750,000		9.500			04/15/17		6,587,500
	Momentive Performance Materials, Inc. (B/B3)
		EUR 3,750,000		9.000			12/01/14		3,484,306
	$	7,250,000		9.750			12/01/14		5,763,750
		4,000,000		10.125	^(b)		12/01/14		3,240,000
	Momentive Performance Materials, Inc. (CCC+/Caa2)
		7,500,000		11.500			12/01/16		5,175,000
	Nalco Co. (B3)
		EUR 3,625,000		9.000			11/15/13		4,822,596
	Rhodia S.A. (BB/B1)^(c)
		7,250,000		7.713			10/15/13		8,420,406
	Rockwood Specialties Group, Inc. (BB-/B3)
		14,750,000		7.625			11/15/14		18,688,550
	SPCM SA (BB-/B3)
		2,875,000		8.250			06/15/13		3,237,941
	The Mosaic Co. (BBB-/Baa3)^(a)
	$	1,125,000		7.375			12/01/14		1,167,188
		3,385,000		7.625			12/01/16		3,554,250

									145,075,810


	Conglomerates – 1.2%
	Blount, Inc. (B/B2)
		6,750,000		8.875			08/01/12		6,682,500
	Bombardier, Inc. (BB+/Ba2)^(a)
		6,750,000		6.750			05/01/12		6,581,250
		3,000,000		8.000			11/15/14		3,045,000
		EUR 2,000,000		7.250			11/15/16		2,534,041
	Park-Ohio Industries, Inc. (B-/B3)
	$	5,000,000		8.375			11/15/14		3,975,000
	Polypore, Inc. (B-/B3)
		EUR 10,000,000		8.750			05/15/12		12,670,203
		4,250,000		8.750			05/15/12		3,995,000
	Trimas Corp. (B-/B3)
	$	5,401,000		9.875			06/15/12		4,671,865

									44,154,859

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

GOLDMAN SACHS HIGH YIELD FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – (continued)
	Conglomerates – (continued)

	Consumer Products – Household & Leisure – 2.4%
	Affinion Group, Inc. (B-/B2)
	$	6,000,000		10.125	%		10/15/13	$	5,640,000
	Affinion Group, Inc. (B-/B3)
		4,125,000		11.500			10/15/15		3,836,250
	Ames True Temper (CCC-/Caa3)
		3,750,000		10.000			07/15/12		1,837,500
	Easton-Bell Sports, Inc. (CCC+/Caa1)
		4,750,000		8.375			10/01/12		3,942,500
	Elizabeth Arden, Inc. (B+/B1)
		1,750,000		7.750			01/15/14		1,579,375
	Harry & David Holdings, Inc. (CCC+/B3)
		3,110,000		9.000			03/01/13		1,586,100
	Jarden Corp. (B/B3)
		9,000,000		7.500			05/01/17		7,515,000
	Safilo Capital International S.A. (B+/B2)
		EUR 7,150,000		9.625			05/15/13		7,146,698
	Sealy Mattress Co. (BB-/B2)
	$	7,000,000		8.250			06/15/14		5,530,000
	Simmons Bedding Co. (B/B2)
		3,500,000		7.875			01/15/14		2,695,000
	Simmons Bedding Co. (CCC+/B3)^(e)
		4,500,000		10.000			12/15/14		2,525,625
	Solo Cup Co. (CCC/Caa2)
		7,000,000		8.500			02/15/14		5,600,000
	Spectrum Brands, Inc. (CCC-/Caa3)
		5,000,000		12.000	^(b)		10/02/13		3,250,000
		12,250,000		7.375			02/01/15		5,818,750
	Visant Corp. (B+/B1)
		7,375,000		7.625			10/01/12		6,932,500
	Visant Holding Corp. (B-/B3)
		15,750,000		8.750			12/01/13		14,490,000
		10,000,000		10.250	^(e)		12/01/13		9,000,000

									88,925,298


	Consumer Products – Industrial – 0.6%
	Johnsondiversey Holdings, Inc. (CCC+/Caa1)^(e)
		7,000,000		10.670			05/15/13		6,930,000
	Johnsondiversey, Inc. (B/B2)
		EUR 10,598,000		9.625			05/15/12		14,323,073
	$	2,895,000		9.625			05/15/12		2,909,475

									24,162,548


	Consumer Products – Non Durable – 1.5%
	Belvedere SA (D/Caa2)^(f)
		EUR 4,500,000		0.000			05/15/13		2,850,796
	Chattem, Inc. (B/B2)
	$	2,655,000		7.000			03/01/14		2,548,800
	Church & Dwight Co., Inc. (BB/Ba2)
		2,250,000		6.000			12/15/12		2,143,125
	Constellation Brands, Inc. (B/B2)
		1,522,000		8.125			01/15/12		1,499,170
	Constellation Brands, Inc. (BB-/Ba3)
		4,000,000		7.250			09/01/16		3,700,000
		9,000,000		7.250			05/15/17		8,415,000
	Prestige Brands, Inc. (B-/B3)
		2,100,000		9.250			04/15/12		2,089,500


	Reddy Ice Holdings, Inc. (B-/Caa1)^(e)
		3,865,000		10.500			11/01/12		3,053,350
	Sally Holdings LLC (B-/B3)
		12,750,000		9.250			11/15/14		11,857,500
	Sally Holdings LLC (CCC+/Caa1)
		16,750,000		10.500			11/15/16		15,954,375
	Yankee Acquisition Corp. (B-/B3)
		3,000,000		8.500			02/15/15		2,160,000
	Yankee Acquisition Corp. (CCC+/Caa1)
		2,250,000		9.750			02/15/17		1,282,500

									57,554,116


	Defense – 1.1%
	Alliant Techsystems, Inc. (BB-/B1)
		6,250,000		6.750			04/01/16		5,843,750
	Communications & Power Industries, Inc. (B-/B3)
		2,000,000		8.000			02/01/12		1,915,000
	DRS Technologies, Inc. (B/B3)
		3,500,000		6.875			11/01/13		3,465,000
		3,750,000		7.625			02/01/18		3,881,250
	DRS Technologies, Inc. (BB-/B1)
		2,000,000		6.625			02/01/16		1,990,000
	L-3 Communications Corp. (BB+/Ba3)
		2,500,000		6.125			07/15/13		2,318,750
		5,500,000		6.125			01/15/14		5,101,250
		7,750,000		5.875			01/15/15		7,013,750
		10,000,000		6.375			10/15/15		9,200,000

									40,728,750


	Energy – Coal – 0.9%
	Arch Western Finance LLC (BB/B1)
		4,670,000		6.750			07/01/13		4,389,800
	Foundation PA Coal Co. (B/Ba3)
		650,000		7.250			08/01/14		624,000
	Massey Energy Co. (BB-/B2)
		6,750,000		6.875			12/15/13		6,058,125
	Massey Energy Co. (BB-)
		2,000,000		3.250			08/01/15		1,382,500
	New World Resources BV (B/B3)
		EUR 5,000,000		7.375			05/15/15		5,631,201
	Peabody Energy Corp. (BB+/Ba1)
	$	4,000,000		6.875			03/15/13		3,860,000
		1,000,000		5.875			04/15/16		925,000
		10,000,000		7.375			11/01/16		9,600,000

									32,470,626


	Energy – Exploration & Production – 3.1%
	Chesapeake Energy Corp. (BB/Ba3)
		8,500,000		6.375			06/15/15		7,565,000
		6,530,000		6.625			01/15/16		5,925,975
		11,875,000		6.875			01/15/16		10,657,812
		EUR 3,250,000		6.250			01/15/17		3,889,048
	$	11,500,000		6.500			08/15/17		10,120,000
		2,500,000		7.250			12/15/18		2,306,250
	Cimarex Energy Co. (BB/Ba3)
		5,000,000		7.125			05/01/17		4,700,000

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

GOLDMAN SACHS HIGH YIELD FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – (continued)
	Energy – Exploration & Production – (continued)

	Encore Acquisition Co. (B/B1)
	$	9,000,000		6.000	%		07/15/15	$	7,245,000
		3,000,000		7.250			12/01/17		2,535,000
	EXCO Resources, Inc. (B-/Caa1)
		3,000,000		7.250			01/15/11		2,850,000
	KCS Energy, Inc. (B/B3)
		2,375,000		7.125			04/01/12		2,113,750
	Newfield Exploration Co. (BB-/Ba3)
		3,000,000		6.625			09/01/14		2,730,000
		8,625,000		6.625			04/15/16		7,740,938
		3,500,000		7.125			05/15/18		3,010,000
	OPTI Canada, Inc. (BB+/B1)
		8,000,000		7.875			12/15/14		7,260,000
	Plains Exploration & Production Co. (BB/B1)
		7,000,000		7.750			06/15/15		6,440,000
		4,000,000		7.000			03/15/17		3,480,000
		2,500,000		7.625			06/01/18		2,212,500
	Quicksilver Resources, Inc. (B/B1)
		1,750,000		8.250			08/01/15		1,627,500
	Quicksilver Resources, Inc. (B/B2)
		7,000,000		7.125			04/01/16		5,845,000
	Range Resources Corp. (BB/Ba3)
		3,750,000		6.375			03/15/15		3,431,250
	SandRidge Energy Inc. (B-/B3)^(a)
		2,500,000		8.000			06/01/18		2,162,500
	Southwestern Energy Co. (BB+/Ba2)^(a)
		3,000,000		7.500			02/01/18		2,940,000
	Whiting Petroleum Corp. (BB-/B1)
		4,000,000		7.250			05/01/13		3,680,000
		2,500,000		7.000			02/01/14		2,175,000

									114,642,523


	Energy – Refining^(a) – 0.2%
	Petroplus Finance Ltd. (BB-/B1)
		2,500,000		6.750			05/01/14		2,200,000
		6,500,000		7.000			05/01/17		5,362,500

									7,562,500


	Energy – Services – 0.4%
	Compagnie Generale de Geophysique-Veritas (BB/Ba3)
		3,500,000		7.500			05/15/15		3,425,625
	Helix Energy Solutions Group, Inc. (BB-/B3)^(a)
	��	4,500,000		9.500			01/15/16		4,275,000
	Key Energy Services, Inc. (BB-/B1)^(a)
		5,000,000		8.375			12/01/14		4,825,000
	Seitel, Inc. (B-/B3)
		2,500,000		9.750			02/15/14		2,037,500

									14,563,125


	Entertainment & Leisure – 0.6%
	AMC Entertainment, Inc. (B-/Ba3)
		1,000,000		8.625			08/15/12		990,000
	AMC Entertainment, Inc. (CCC+/B2)
		3,250,000		11.000			02/01/16		3,217,500
	HRP Myrtle Beach Operations LLC (WR)^(a)(f)
		1,750,000		0.000			04/01/12		1,365,000


	Universal City Development Partners (B+/B1)
		7,750,000		11.750			04/01/10		7,808,125
	Universal City Florida Holding Co. (B-/B3)
		1,125,000		8.375			05/01/10		1,125,000
	WMG Acquisition Corp. (B/B3)
		5,750,000		7.375			04/15/14		4,269,375
	WMG Holdings Corp. (B/B3)^(e)
		4,550,000		9.500			12/15/14		2,502,500

									21,277,500


	Environmental – 1.1%
	Allied Waste North America, Inc. (BB/B1)
		3,875,000		6.375			04/15/11		3,758,750
		5,285,000		7.875			04/15/13		5,285,000
		3,750,000		6.125			02/15/14		3,431,250
		9,000,000		7.250			03/15/15		8,595,000
	Allied Waste North America, Inc. Series B (BB/B1)
		5,055,000		7.125			05/15/16		4,739,062
		4,500,000		6.875			06/01/17		4,331,250
	Waste Services (B-/Caa1)
		7,250,000		9.500			04/15/14		7,068,750
	WCA Waste Corp. (B-/B3)
		2,500,000		9.250			06/15/14		2,400,000

									39,609,062


	Finance – 1.2%
	ETrade Financial Corp. (B/Ba3)
		6,250,000		7.375			09/15/13		4,875,000
	General Motors Acceptance Corp. (B-/B3)
		EUR 2,750,000		4.750			09/14/09		2,477,728
	$	3,000,000		7.250			03/02/11		1,485,869
		15,750,000		6.875			09/15/11		7,087,500
		6,000,000		6.750			12/01/14		2,369,843
		13,785,000		8.000			11/01/31		5,376,150
	GMAC Canada Ltd. (B-/B3)
		CAD 1,000,000		4.721	^(c)		05/22/09		834,278
		GBP 500,000		6.625			12/17/10		515,577
		EUR 4,000,000		6.000			05/23/12		2,984,537
	GMAC International Finance BV (B-/B3)
		1,750,000		6.164	^(c)		05/22/09		1,823,101
		2,750,000		5.750			05/21/10		2,516,443
	GMAC LLC (B-/B3)
		4,000,000		5.750			09/27/10		2,534,041
		2,500,000		5.375			06/06/11		1,478,190
	NCO Group, Inc. (B-/Caa1)
	$	7,250,000		11.875			11/15/14		5,963,125
	Nuveen Investments, Inc. (B-/B3)^(a)
		2,500,000		10.500			11/15/15		1,925,000

									44,246,382


	Finance Insurance^(a) – 0.1%
	HUB International Holdings, Inc. (CCC+/B3)
		6,500,000		9.000			12/15/14		5,720,000

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

GOLDMAN SACHS HIGH YIELD FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – (continued)
	Finance Insurance^(a) – (continued)

	Food – 1.4%
	Dean Foods Co. (B/B3)
	$	9,000,000		7.000	%		06/01/16	$	7,920,000
	Dole Food Co. (B-/Caa1)
		5,013,000		8.625			05/01/09		4,781,149
		4,000,000		7.250			06/15/10		3,570,000
		3,250,000		8.875			03/15/11		2,746,250
	Foodcorp Ltd. (B/B2)
		EUR 7,500,000		8.875			06/15/12		6,651,856
	Michael Foods, Inc. (B-/B3)
	$	4,750,000		8.000			11/15/13		4,583,750
	Pinnacle Foods Finance LLC (CCC/Caa2)
		17,750,000		9.250			04/01/15		14,732,500
		11,500,000		10.625			04/01/17		8,855,000

									53,840,505


	Gaming – 4.9%
	Boyd Gaming Corp. (BB/B1)
		3,000,000		6.750			04/15/14		2,182,500
		1,000,000		7.125			02/01/16		695,000
	Buffalo Thunder Development Authority (B/B2)^(a)
		2,500,000		9.375			12/15/14		1,050,000
	CCM Merger, Inc. (B-/Caa1)^(a)
		4,500,000		8.000			08/01/13		3,465,000
	Chukchansi Economic Development Authority (B+/B2)^(a)
		4,000,000		8.000			11/15/13		3,080,000
	Circus & Eldorado (B/B2)
		3,500,000		10.125			03/01/12		3,150,000
	Cirsa Capital Luxembourg SA (B+/B3)
		EUR 1,750,000		7.875			07/15/12		1,675,283
	Cirsa Finance Luxembourg SA (B+/B2)
		5,750,000		8.750			05/15/14		5,018,808
	Codere Finance Luxembourg SA (BB-/B2)
		17,250,000		8.250			06/15/15		17,970,571
	Galaxy Entertainment Finance Co. Ltd. (B+/B1)^(a)
	$	1,500,000		9.875			12/15/12		1,012,500
	Harrah’s Operating Co., Inc. (B+/Caa1)^(a)
		10,000,000		10.750			02/01/16		5,200,000
	Harrah’s Operating Co., Inc. (B-/Caa2)
		8,375,000		5.625			06/01/15		2,345,000
		8,000,000		6.500			06/01/16		2,100,000
	Herbst Gaming, Inc. (D/C)^(f)
		2,000,000		8.125			06/01/12		80,000
	Isle of Capri Casinos, Inc. (B-/B3)
		3,250,000		7.000			03/01/14		2,201,875
	Mandalay Resort Group (B+/B1)
		2,000,000		9.375			02/15/10		1,800,000
	Mashantucket Pequot Tribe (BB+/Ba2)^(a)
		4,000,000		8.500			11/15/15		2,680,000
	MGM Mirage, Inc. (B+/B1)
		5,125,000		8.375			02/01/11		4,176,875


	MGM Mirage, Inc. (BB/Ba2)
		2,000,000		8.500			09/15/10		1,880,000
		1,500,000		6.750			09/01/12		1,200,000
		9,875,000		6.750			04/01/13		7,801,250
		3,500,000		5.875			02/27/14		2,485,000
		21,000,000		6.625			07/15/15		14,700,000
		12,000,000		7.500			06/01/16		8,520,000
		3,000,000		7.625			01/15/17		2,160,000
	Mirage Resorts, Inc. (BB/Ba2)
		3,125,000		7.250			08/01/17		2,187,500
	Mohegan Tribal Gaming Authority (B/Ba3)
		3,000,000		8.000			04/01/12		2,550,000
		1,555,000		7.125			08/15/14		1,104,050
	Mohegan Tribal Gaming Authority (B+/Ba1)
		250,000		6.125			02/15/13		207,500
	MTR Gaming Group, Inc. (B/B2)
		3,000,000		9.750			04/01/10		2,820,000
	Park Place Entertainment Corp. (B-/Caa2)
		5,000,000		7.875			03/15/10		3,900,000
		2,500,000		8.125			05/15/11		1,500,000
	Peermont Proprietary Global Ltd. (B/B3)
		EUR 14,500,000		7.750			04/30/14		13,064,387
	Penn National Gaming, Inc. (BB-/B1)
	$	4,000,000		6.750			03/01/15		3,520,000
	Pinnacle Entertainment, Inc. (B+/B3)
		4,750,000		8.250			03/15/12		4,560,000
		1,500,000		8.750			10/01/13		1,440,000
		6,430,000		7.500			06/15/15		4,758,200
	Pokagon Gaming Authority (B+/B2)^(a)
		1,865,000		10.375			06/15/14		1,930,275
	River Rock Entertainment (B+/B2)
		2,000,000		9.750			11/01/11		1,840,000
	San Pasqual Casino (BB-/B2)^(a)
		2,375,000		8.000			09/15/13		2,066,250
	Seneca Gaming Corp. (BB/Ba2)
		2,300,000		7.250			05/01/12		1,942,500
	Shingle Springs Tribal Gaming Authority (B/B3)^(a)
		8,250,000		9.375			06/15/15		5,940,000
	Snoqualmie Entertainment Authority (B/B3)^(a)
		5,000,000		9.125			02/01/15		3,550,000
	Station Casinos, Inc. (B-/B3)
		2,500,000		6.000			04/01/12		1,443,750
		2,000,000		7.750			08/15/16		1,110,000
	Station Casinos, Inc. (CCC/Caa2)
		11,625,000		6.500			02/01/14		3,429,375
		16,000,000		6.875			03/01/16		4,560,000
	Tropicana Entertainment LLC (WR)^(f)
		4,000,000		9.625			12/15/14		640,000
	Turning Stone Casino Resort Enterprise (B+/B1)^(a)
		2,950,000		9.125			09/15/14		2,655,000
	Wynn Las Vegas LLC (BBB-/Ba2)
		16,000,000		6.625			12/01/14		13,640,000

									184,988,449

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

GOLDMAN SACHS HIGH YIELD FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – (continued)
	Gaming – (continued)

	Health Care – Medical Products – 2.4%
	Accellent, Inc. (CCC+/Caa3)
	$	8,000,000		10.500	%		12/01/13	$	7,040,000
	Advanced Medical Optics, Inc. (B-/B2)
		7,280,000		7.500			05/01/17		6,333,600
	Bausch & Lomb, Inc. (B/Caa1)^(a)
		15,250,000		9.875			11/01/15		14,640,000
	DJO Finance LLC/DJO Finance Corp. (B-/Caa1)
		11,000,000		10.875			11/15/14		10,587,500
	Fisher Scientific International, Inc. (BBB/Baa3)
		2,250,000		6.125			07/01/15		2,165,446
	Fresenius (BB+/Ba2)
		6,625,000		6.875			07/15/17		6,325,420
	PTS Acquisition Corp. (B/Caa1)
		21,500,000		9.500			04/15/15		16,877,500
	PTS Acquisition Corp. (B-/Caa1)
		EUR 10,000,000		9.750			04/15/17		7,883,682
	The Cooper Companies, Inc. (BB-/Ba3)
	$	2,000,000		7.125			02/15/15		1,955,000
	VWR Funding, Inc. (B-/Caa1)^(b)
		19,500,000		10.250			07/15/15		17,647,500

									91,455,648


	Health Care – Pharmaceutical – 0.4%
	Angiotech Pharmaceuticals, Inc. (C/C)
		4,375,000		7.750			04/01/14		2,646,875
	Elan Finance PLC/Elan Finance Corp. (B/B3)
		5,000,000		7.750			11/15/11		4,618,750
		1,500,000		8.875			12/01/13		1,290,000
	Warner Chilcott Corp. (B-/B3)
		5,731,000		8.750			02/01/15		5,702,345

									14,257,970


	Health Care – Services – 4.2%
	Alliance Imaging, Inc. (B-/B3)
		4,000,000		7.250			12/15/12		3,680,000
	Community Health Systems, Inc. (B/B3)
		17,125,000		8.875			07/15/15		16,354,375
	CRC Health Corp. (CCC+/Caa1)
		3,250,000		10.750			02/01/16		2,470,000
	DaVita, Inc. (B/B2)
		5,500,000		7.250			03/15/15		5,238,750
	DaVita, Inc. (B+/B1)
		2,250,000		6.625			03/15/13		2,120,625
	HCA, Inc. (B-/Caa1)
		GBP 1,502,000		8.750			11/01/10		2,616,925
	$	3,250,000		6.300			10/01/12		2,827,500
		14,000,000		6.250			02/15/13		11,620,000
		5,920,000		6.750			07/15/13		4,972,800
		8,750,000		6.375			01/15/15		6,956,250
		4,000,000		6.500			02/15/16		3,180,000
	HCA, Inc. (BB-/B2)
		10,000,000		9.125			11/15/14		9,787,500
		13,750,000		9.250			11/15/16		13,406,250
		13,750,000		9.625	^(b)		11/15/16		13,028,125
	Psychiatric Solutions, Inc. (B-/B3)
		2,220,000		7.750			07/15/15		2,086,800


	Select Medical Corp. (CCC+/B3)
		7,000,000		7.625			02/01/15		5,661,250
	Senior Housing Properties Trust (BBB-/Ba1)
		1,950,000		7.875			04/15/15		1,945,125
	Tenet Healthcare Corp. (B/Caa1)
		3,000,000		6.375			12/01/11		2,767,500
		4,000,000		6.500			06/01/12		3,660,000
		12,000,000		7.375			02/01/13		10,920,000
		4,000,000		9.875			07/01/14		3,900,000
		2,000,000		9.250			02/01/15		1,890,000
	U.S. Oncology, Inc. (B-/B2)
		5,000,000		9.000			08/15/12		4,975,000
	U.S. Oncology, Inc. (CCC+/B3)
		1,875,000		10.750			08/15/14		1,884,375
	United Surgical Partners International, Inc. (CCC+/Caa1)
		5,000,000		8.875			05/01/17		4,200,000
	Vanguard Health Holding Co. I (CCC+/Caa1)^(e)
		3,500,000		11.250			10/01/15		3,045,000
	Vanguard Health Holding Co. II (CCC+/Caa1)
		8,625,000		9.000			10/01/14		8,323,125
	Ventas Realty LP (BBB-/Ba1)
		2,000,000		9.000			05/01/12		2,085,000

									155,602,275


	Home Construction – 0.4%
	D. R. Horton, Inc. (BB/Ba2)
		2,000,000		5.375			06/15/12		1,620,000
		2,000,000		5.250			02/15/15		1,520,000
	K. Hovnanian Enterprises, Inc. (B+/Ba3)^(a)
		1,750,000		11.500			05/01/13		1,706,250
	K. Hovnanian Enterprises, Inc. (CCC+/Caa1)
		1,000,000		6.250			01/15/15		582,500
		3,450,000		7.500			05/15/16		1,983,750
		4,000,000		8.625			01/15/17		2,340,000
	Kimball Hill, Inc. (WR)^(f)
		2,250,000		10.500			12/15/12		45,000
	Meritage Homes Corp. (BB-/B1)
		5,250,000		6.250			03/15/15		3,911,250

									13,708,750


	Lodging – 0.6%
	Gaylord Entertainment Co. (B+/Caa1)
		4,825,000		8.000			11/15/13		4,197,750
	Host Hotels & Resorts LP (BB/Ba1)
		4,000,000		6.750			06/01/16		3,300,000
	Host Hotels & Resorts LP (BB)
		4,000,000		6.875			06/01/16		3,440,000
	Host Marriott LP (BB/Ba1)
		8,250,000		7.125			11/01/13		7,301,250
		5,500,000		6.375			03/15/15		4,482,500

									22,721,500


	Machinery – 0.3%
	Case New Holland, Inc. (BBB-/Ba3)
		3,000,000		7.125			03/01/14		2,812,500
		953,000		7.250			01/15/16		883,908

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

GOLDMAN SACHS HIGH YIELD FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – (continued)
	Machinery – (continued)

	Douglas Dynamics LLC (B-/B3)^(a)
	$	1,750,000		7.750	%		01/15/12	$	1,435,000
	Dresser-Rand Group, Inc. (BB-/B1)
		6,098,000		7.375			11/01/14		5,732,120

									10,863,528


	Media – 1.7%
	DIRECTV Holdings LLC (BB/Ba3)
		4,500,000		8.375			03/15/13		4,455,000
		3,500,000		6.375			06/15/15		3,071,250
		22,750,000		7.625	^(a)		05/15/16		21,043,750
	EchoStar DBS Corp. (BB-/Ba3)
		5,500,000		6.375			10/01/11		5,060,000
		8,000,000		7.000			10/01/13		6,880,000
		4,000,000		6.625			10/01/14		3,200,000
		6,250,000		7.750			05/31/15		5,281,250
		6,525,000		7.125			02/01/16		5,236,312
	Lamar Media Corp. (BB-/Ba3)
		5,000,000		7.250			01/01/13		4,500,000
		5,250,000		6.625			08/15/15		4,357,500

									63,085,062


	Media – Broadcasting & Radio – 1.3%
	Bonten Media Acquisition Co. (CCC+/Caa2)^(a)(b)
		3,500,000		9.000			06/01/15		2,135,000
	Clear Channel Communications, Inc. (CCC+/Caa1)
		4,750,000		6.250			03/15/11		3,040,000
		6,000,000		5.750			01/15/13		2,820,000
		10,000,000		5.500			09/15/14		3,050,000
		5,750,000		5.500			12/15/16		2,242,500
	CMP Susquehanna Corp. (CCC/Caa1)
		6,750,000		9.875			05/15/14		3,780,000
	Fox Acquisition Sub LLC (CCC+/Caa1)^(a)
		1,250,000		13.375			07/15/16		1,187,500
	Liberty Media LLC (BB+/Ba2)
		3,500,000		5.700			05/15/13		2,920,471
		2,120,000		8.250			02/01/30		1,496,505
	LIN Television Corp. (B+/B1)
		8,750,000		6.500			05/15/13		6,825,000
	Local TV Finance LLC (CCC+/Caa1)^(a)(b)
		5,000,000		9.250			06/15/15		3,200,000
	Radio One, Inc. (CCC+/Caa1)
		2,250,000		6.375			02/15/13		1,541,250
	Univision Communications, Inc. (CCC/Caa1)^(a)(b)
		28,750,000		9.750			03/15/15		13,225,000

									47,463,226


	Media – Cable – 3.0%
	Adelphia Communications Corp.^(f)
		2,000,000		10.250			06/15/49		80,000
	Atlantic Broadband Finance LLC (CCC+/Caa1)
		3,250,000		9.375			01/15/14		2,876,250
	Cablevision Systems Corp. (B+/B2)
		10,750,000		8.000			04/15/12		10,105,000
	CCH I Holdings LLC (CCC/Caa3)
		13,585,000		11.000			10/01/15		8,932,137


	CCO Holdings LLC/CCO Holdings Capital Corp (CCC/Caa1)
		10,250,000		8.750			11/15/13		8,891,875
	Charter Communications Holdings II (CCC/Caa2)
		11,000,000		10.250			09/15/10		9,900,000
	CSC Holdings, Inc. (BB/B1)
		7,250,000		8.125			07/15/09		7,177,500
		1,250,000		8.125			08/15/09		1,237,500
		5,550,000		6.750			04/15/12		5,085,187
		8,000,000		8.500	^(a)		06/15/15		7,430,000
	CSC Holdings, Inc. Series B (BB/B1)
		5,000,000		7.625			04/01/11		4,787,500
	Frontier Vision^(f)
		2,000,000		11.000			10/15/49		—
	Kabel Deutschland GmbH (B-/B2)
		5,750,000		10.625			07/01/14		5,721,250
	Ono Finance II (CCC+/B3)
		EUR 12,000,000		8.000			05/16/14		7,771,058
	Ono Finance PLC (CCC+/B3)
		4,250,000		10.500			05/15/14		2,991,576
	Rainbow National Services LLC (BB/B1)^(a)
	$	200,000		8.750			09/01/12		200,000
	Rainbow National Services LLC (BB/B2)^(a)
		1,909,000		10.375			09/01/14		1,947,180
	UPC Holding BV (B-/B3)
		EUR 7,500,000		7.750			01/15/14		8,552,387
		10,125,000		8.625			01/15/14		11,830,802
		6,000,000		8.000			11/01/16		6,504,038

									112,021,240


	Media – Diversified – 0.6%
	CanWest MediaWorks, Inc. (CCC+/B3)
	$	9,000,000		8.000			09/15/12		7,470,000
	Quebecor Media, Inc. (B/B2)
		7,410,000		7.750			03/15/16		6,530,063
	Rogers Wireless Communications, Inc. (BB+/Ba1)
		5,370,000		8.000			12/15/12		5,356,575
	Rogers Wireless Communications, Inc. (BBB-/Baa3)
		2,000,000		7.500			03/15/15		2,060,000
	Videotron Ltee (BB-/Ba2)
		625,000		6.875			01/15/14		571,875
		1,000,000		6.375			12/15/15		885,000

									22,873,513


	Metals – 1.8%
	AK Steel Corp. (BB-/Ba3)
		7,000,000		7.750			06/15/12		6,650,000
	Aleris International, Inc. (B-/B3)^(b)
		8,500,000		9.000			12/15/14		5,270,000
	Aleris International, Inc. (B-/Caa1)
		16,000,000		10.000			12/15/16		9,920,000
	FMG Finance Pty Ltd (B+/B1)^(a)
		5,000,000		10.625			09/01/16		4,850,000
	Freeport-McMoRan Copper & Gold, Inc. (BBB-/Ba2)
		750,000		5.883	^(c)		04/01/15		713,433
		2,250,000		8.250			04/01/15		2,199,375
		5,000,000		8.375			04/01/17		4,900,000

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

GOLDMAN SACHS HIGH YIELD FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – (continued)
	Metals – (continued)

	GrafTech Finance, Inc. (BB/Ba3)
	$	367,000		10.250	%		02/15/12	$	378,927
	Noranda Aluminium Acquisition Corp. (B-/B3)^(c)
		7,375,000		6.828			05/15/15		5,715,625
	Noranda Aluminium Holding Corp. (CCC+/Caa1)^(c)
		3,250,000		8.578			11/15/14		2,177,500
	Novelis, Inc. (B/B3)
		13,500,000		7.250			02/15/15		11,677,500
	Steel Dynamics, Inc. (BB+/Ba2)
		6,000,000		7.375			11/01/12		5,640,000
		3,000,000		7.750	^(a)		04/15/16		2,700,000
	Tube City IMS Corp. (B-/B3)
		3,500,000		9.750			02/01/15		3,220,000

									66,012,360


	Packaging – 3.6%
	Ball Corp. (BB+/Ba1)
		50,000		6.875			12/15/12		49,938
	Berry Plastics Holding Corp. (CCC/Caa2)
		8,000,000		10.250			03/01/16		4,960,000
	Berry Plastics Holding Corp. (CCC+/Caa1)
		2,500,000		6.694	^(c)		09/15/14		1,625,000
		11,000,000		8.875			09/15/14		8,030,000
	Beverage Packaging Holdings II SA/Luxembourg (B+/B2)
		EUR 9,000,000		8.000			12/15/16		9,882,758
	Beverage Packaging Holdings II SA/Luxembourg (B-/B3)
		17,000,000		9.500			06/15/17		16,154,509
	Clondalkin Acquisition (B+/Ba3)^(c)
		1,000,000		6.958			12/15/13		1,126,240
	Clondalkin Industries BV (B-/Ba3)
		2,250,000		8.000			03/15/14		2,153,935
	Consol Specialty Glass Ltd. (BB-/B1)
		7,000,000		7.625			04/15/14		6,701,130
	Crown Americas LLC (B/B1)
	$	10,000,000		7.750			11/15/15		9,850,000
	Crown European Holdings SA (BB/Baa3)
		EUR 1,500,000		6.250			09/01/11		1,911,089
	Gerresheimer Holdings GMBH (BB+/B1)
		4,800,000		7.875			03/01/15		6,622,293
	Graham Packaging Co., Inc. (CCC+/Caa1)
	$	21,643,000		9.875			10/15/14		18,071,905
	Graphic Packaging International, Inc. (B-/B3)
		15,000,000		9.500			08/15/13		13,200,000
	Impress Holdings BV (B-/B3)
		EUR 14,000,000		9.250			09/15/14		16,161,548
	Impress Holdings BV (BB-/Ba3)^(c)
	$	1,000,000		5.916	^(a)		09/15/13		878,226
		EUR 2,750,000		8.088			09/15/13		3,368,162
	OI European Group BV (BB/Ba3)
		250,000		6.875			03/31/17		300,917
	Owens Brockway Glass Container (BB/Ba3)
	$	2,500,000		8.250			05/15/13		2,493,750
		EUR 1,125,000		6.750			12/01/14		1,377,885
	$	1,000,000		6.750			12/01/14		955,000
	Plastipak Holdings, Inc. (B/B3)^(a)
		1,165,000		8.500			12/15/15		981,512


	Pregis Corp. (CCC+/Caa2)
		7,000,000		12.375			10/15/13		4,550,000
	Stichting Participatie Impress Cooperatieve UA^(b)
		EUR 967,555		17.000			09/29/49		1,232,722
	Tekni-Plex, Inc. (Caa1)
	$	2,500,000		10.875			08/15/12		2,500,000

									135,138,519


	Paper – 2.0%
	Boise Cascade LLC (BB-/B2)
		3,732,000		7.125			10/15/14		2,463,120
	Catalyst Paper Corp. (B-/B2)
		3,500,000		8.625			06/15/11		2,738,750
		1,500,000		7.375			03/01/14		1,020,000
	Georgia-Pacific Corp. (B+/B2)
		8,500,000		8.125			05/15/11		8,393,750
		1,000,000		9.500			12/01/11		990,000
		1,500,000		7.700			06/15/15		1,380,000
		1,250,000		8.000			01/15/24		1,112,500
		2,750,000		7.750			11/15/29		2,296,250
	Georgia-Pacific Corp. (BB-/Ba3)^(a)
		10,000,000		7.000			01/15/15		8,975,000
		8,125,000		7.125			01/15/17		7,251,562
	Jefferson Smurfit Corp. (B-/B3)
		6,000,000		8.250			10/01/12		5,040,000
		1,750,000		7.500			06/01/13		1,435,000
	JSG Funding PLC (B+/B2)
		3,250,000		7.750			04/01/15		2,697,500
	NewPage Corp. (B-/B2)
		8,000,000		10.000			05/01/12		7,200,000
	Smurfit Kappa Funding PLC (B+/B2)
		EUR 6,000,000		7.750			04/01/15		6,799,676
	Smurfit-Stone Container Enterprises, Inc. (B-/B3)
	$	8,500,000		8.000			03/15/17		6,630,000
	Stone Container Finance (B-/B3)
		2,250,000		7.375			07/15/14		1,732,500
	Verso Paper Holdings LLC, Inc. (B+/B2)
		5,000,000		9.125			08/01/14		4,200,000
	Verso Paper Holdings LLC, Inc. (CCC+/B3)
		5,000,000		11.375			08/01/16		3,925,000

									76,280,608


	Printing – 0.2%
	SGS International, Inc. (B-/B3)
		4,750,000		12.000			12/15/13		3,823,750
	Valassis Communications, Inc. (B-/B3)
		5,000,000		8.250			03/01/15		3,450,000

									7,273,750


	Publishing – 2.5%
	Dex Media West Finance Co. (BB-/B1)
		300,000		8.500			08/15/10		261,750
	Dex Media West LLC (B+/B1)
		6,744,000		9.875			08/15/13		4,181,280
	Dex Media, Inc. (B-/B2)
		1,250,000		8.000			11/15/13		575,000
		12,750,000		9.000	^(e)		11/15/13		5,992,500

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

GOLDMAN SACHS HIGH YIELD FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – (continued)
	Publishing – (continued)

	Idearc, Inc. (B-/B3)
	$	12,500,000		8.000	%		11/15/16	$	3,531,250
	Lighthouse International Co. SA (BB-/B2)
		EUR 10,000,000		8.000			04/30/14		8,517,192
	Morris Publishing Group LLC (CCC/Caa1)
	$	4,500,000		7.000			08/01/13		1,080,000
	Nielsen Finance LLC Co. (B-/Caa1)
		15,000,000		10.000			08/01/14		14,343,750
	Nielsen Finance LLC Co. (CCC+/Caa1)^(e)
		20,000,000		12.500			08/01/16		13,150,000
	RH Donnelley Corp. (B+/B1)^(a)
		2,820,000		11.750			05/15/15		1,734,300
	RH Donnelley Corp. (B-/B3)
		7,000,000		6.875			01/15/13		2,730,000
		7,000,000		8.875			01/15/16		2,310,000
	The Nielsen Co. (CCC+/Caa1)^(e)
		EUR 10,000,000		11.125			08/01/16		6,757,442
	TL Acquisitions, Inc. (CCC+/Caa1)^(a)
	$	18,500,000		10.500			01/15/15		14,892,500
	Truvo Subsidiary Corp. (CCC+/Caa1)
		EUR 19,750,000		8.500			12/01/14		14,458,109

									94,515,073


	Real Estate – 0.3%
	Castle HoldCo Ltd. (B/Caa1)^(c)
		GBP 2,000,000		8.643			05/15/14		1,422,280
	Castle HoldCo Ltd. (CCC+/Caa3)
		2,500,000		9.875			05/15/15		1,355,611
	Fontainebleau Las Vegas Holdings Corp. LLC (CCC/Caa1)^(a)
	$	5,000,000		10.250			06/15/15		1,700,000
	Realogy Corp. (B-/Caa2)
		7,000,000		10.500			04/15/14		3,185,000
		2,750,000		11.000	^(b)		04/15/14		1,086,250
	Realogy Corp. (CCC/Caa3)
		5,000,000		12.375			04/15/15		1,875,000

									10,624,141


	Restaurants – 0.5%
	Landry’s Restaurants, Inc. (CCC+/B3)^(d)
		9,050,000		9.500			12/15/14		8,190,250
	NPC International, Inc. (CCC+/Caa1)
		2,500,000		9.500			05/01/14		2,062,500
	OSI Restaurant Partners, Inc. (CCC/Caa1)
		10,000,000		10.000			06/15/15		4,450,000
	Seminole Hard Rock Entertainment, Inc. (BB/B1)^(a)(c)
		5,250,000		5.319			03/15/14		3,963,750

									18,666,500


	Retailers – 1.3%
	AutoNation, Inc. (BB+/Ba2)
		745,000		7.000	%		04/15/14		644,425
	Burlington Coat Factory Warehouse Corp. (CCC/B3)
		2,250,000		11.125			04/15/14		1,282,500
	Claire’s Stores, Inc. (CCC/Caa3)
		2,625,000		10.500			06/01/17		918,750
	Claire’s Stores, Inc. (CCC+/Caa2)
		3,000,000		9.625			06/01/15		810,000


	Edcon Proprietary Ltd. (BB-/B2)^(c)
		EUR 12,750,000		8.208			06/15/14		10,679,925
	General Nutrition Centers, Inc. (CCC/Caa1)^(b)(c)
	$	7,000,000		7.584			03/15/14		5,845,000
	Michaels Stores, Inc. (CCC/Caa1)
		9,500,000		10.000			11/01/14		5,842,500
	Michaels Stores, Inc. (CCC/Caa2)
		11,000,000		11.375			11/01/16		5,170,000
	Neiman-Marcus Group, Inc. (B/B3)
		14,500,000		10.375			10/15/15		12,071,250
	Neiman-Marcus Group, Inc. (B+/B2)^(b)
		7,000,000		9.000			10/15/15		5,836,250

									49,100,600


	Retailers – Food & Drug – 0.6%
	Ahold Lease USA, Inc. (BBB-/Baa3)^(e)
		856,392		7.820			01/02/20		923,833
		2,000,000		8.620			01/02/25		2,235,000
	Ingles Markets, Inc. (B+/B2)
		4,615,000		8.875			12/01/11		4,649,613
	Rite Aid Corp. (B+/Caa1)
		5,000,000		7.500			03/01/17		3,850,000
	Rite Aid Corp. (CCC+/Caa2)
		3,625,000		9.375			12/15/15		1,957,500
		7,000,000		9.500			06/15/17		3,657,500
	Supervalu, Inc. (B+/B1)
		5,000,000		7.500			11/15/14		4,850,000

									22,123,446


	Services Cyclical – Business Services – 1.6%
	ACCO Brands Corp. (B+/B2)
		7,500,000		7.625			08/15/15		5,850,000
	Carlson Wagonlit BV (B-/B2)^(c)
		EUR 9,000,000		10.713			05/01/15		7,982,228
	Cornell Co., Inc. (B/B2)
	$	1,500,000		10.750			07/01/12		1,492,500
	Corrections Corp. of America (BB/Ba2)
		2,000,000		7.500			05/01/11		1,975,000
		625,000		6.750			01/31/14		584,375
	Great Lakes Dredge & Dock Co. (B-/Caa1)
		3,500,000		7.750			12/15/13		3,220,000
	Iron Mountain, Inc. (B+/B2)
		3,000,000		8.625			04/01/13		2,970,000
		1,500,000		6.625			01/01/16		1,425,000
		4,250,000		8.000			06/15/20		4,133,125
	ISS Holdings A/S (B/Caa1)
		EUR 9,000,000		8.875			05/15/16		11,149,779
	Savcio Holdings Ltd. (B+/B2)
		2,000,000		8.000			02/15/13		2,336,948
	West Corp. (B-/Caa1)
	$	10,000,000		9.500			10/15/14		7,700,000
		14,250,000		11.000			10/15/16		10,545,000

									61,363,955

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

GOLDMAN SACHS HIGH YIELD FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – (continued)
	Services Cyclical – Business Services – (continued)

	Services Cyclical – Consumer Services – 0.1%
	Service Corp. International (BB-/B1)
	$	1,750,000		6.750	%		04/01/16	$	1,513,750
		2,125,000		7.000			06/15/17		1,838,125

									3,351,875


	Services Cyclical – Rental Equipment – 1.5%
	Ahern Rentals, Inc. (B+/B3)
		3,000,000		9.250			08/15/13		1,500,000
	Ashtead Capital, Inc. (B/B1)^(a)
		3,000,000		9.000			08/15/16		2,610,000
	Ashtead Holdings PLC (B/B1)^(a)
		2,000,000		8.625			08/01/15		1,720,000
	Avis Budget Car Rental (B+/Ba3)
		955,000		7.625			05/15/14		620,750
	Europcar Groupe SA (B+/B3)
		EUR 3,250,000		8.125			05/15/14		2,287,676
	Europcar Groupe SA (BB-/B2)^(c)
		4,000,000		8.465			05/15/13		3,266,097
	Hertz Corp. (B/B2)
	$	10,000,000		10.500			01/01/16		8,450,000
	Hertz Corp. (BB-/B1)
		EUR 1,500,000		7.875			01/01/14		1,562,658
	$	10,725,000		8.875			01/01/14		9,277,125
	Neff Corp. (CCC+/Caa2)
		3,000,000		10.000			06/01/15		900,000
	RSC Equipment Rental, Inc. (B-/Caa1)
		15,500,000		9.500			12/01/14		11,780,000
	United Rentals North America, Inc. (B/B2)
		7,000,000		7.750			11/15/13		5,285,000
		5,750,000		7.000			02/15/14		4,197,500
	United Rentals North America, Inc. (BB-/B1)
		5,000,000		6.500			02/15/12		4,175,000

									57,631,806


	Technology – Hardware – 2.0%
	Avago Technologies (B/B3)
		6,250,000		11.875			12/01/15		6,531,250
	Avago Technologies Finance Corp. (BB-/B1)
		11,500,000		10.125			12/01/13		11,873,750
	Freescale Semiconductor, Inc. (B-/B2)
		4,750,000		8.875			12/15/14		3,325,000
		12,825,000		9.125	^(b)		12/15/14		8,143,875
	Freescale Semiconductor, Inc. (B-/B3)
		10,000,000		10.125			12/15/16		6,450,000
	Lucent Technologies, Inc. (BB-/Ba3)
		1,250,000		5.500			11/15/08		1,234,375
		10,750,000		6.450			03/15/29		6,718,750
	Nortel Networks Ltd. (B-/B3)
		1,000,000		7.041	%^(c)		07/15/11		665,000
		4,750,000		10.125			07/15/13		3,016,250
		3,000,000		10.750			07/15/16		1,755,000
	NXP BV/NXP Funding LLC (B-/B3)
		750,000		5.541	^(c)		10/15/13		498,750
		EUR 1,500,000		7.713	^(c)		10/15/13		1,288,137
	$	4,625,000		7.875			10/15/14		3,133,438


	NXP BV/NXP Funding LLC (CCC+/Caa2)
		EUR 5,500,000		8.625			10/15/15		3,716,593
	$	10,005,000		9.500			10/15/15		5,227,612
	Spansion, Inc. (B/Caa2)^(a)
		6,000,000		11.250			01/15/16		3,480,000
	Xerox Corp. (BBB/Baa2)
		EUR 2,000,000		9.750			01/15/09		2,826,159
	$	2,250,000		9.750			01/15/09		2,287,402
		2,000,000		7.625			06/15/13		2,026,555

									74,197,896


	Technology – Software/Services – 2.3%
	First Data Corp. (B/B3)^(a)
		19,500,000		9.875			09/24/15		15,307,500
	Sabre Holdings Corp. (B-/Caa1)
		10,000,000		8.350			03/15/16		6,400,000
	Serena Software, Inc. (CCC+/Caa1)
		5,000,000		10.375			03/15/16		4,400,000
	Sungard Data Systems, Inc. (B/Caa1)
		12,000,000		9.125			08/15/13		10,800,000
		6,000,000		10.625	^(a)		05/15/15		5,655,000
	Sungard Data Systems, Inc. (B-/Caa1)
		26,125,000		10.250			08/15/15		22,794,063
	Travelport, Inc. (B/B3)
		EUR 2,000,000		9.588	^(c)(d)		09/01/14		1,984,998
	$	15,500,000		9.875			09/01/14		12,400,000
	Travelport, Inc. (CCC+/Caa1)
		11,000,000		11.875			09/01/16		7,892,500
	Travelport, Inc. (Caa1)
		EUR 375,000		10.875			09/01/16		345,791

									87,979,852


	Telecommunications – 2.3%
	BCM Ireland Finance Ltd. (B-/B3)^(c)
		3,000,000		9.965			08/15/16		3,209,785
	Citizens Communications Co. (BB/Ba2)
	$	7,625,000		9.250			05/15/11		7,663,125
		2,500,000		6.250			01/15/13		2,350,000
	Frontier Communications Corp. (BB/Ba2)
		8,750,000		6.625			03/15/15		7,393,750
	Level 3 Financing, Inc. (CCC+/Caa1)
		10,000,000		9.250			11/01/14		7,575,000
	Nordic Telephone Co. Holdings (B+/B2)
		EUR 14,250,000		8.250			05/01/16		16,650,759
	$	9,000,000		8.875	^(a)		05/01/16		8,370,000
	Qwest Capital Funding, Inc. (B+/B1)
		750,000		7.000			08/03/09		738,750
		5,500,000		7.900			08/15/10		5,280,000
	Qwest Communications International, Inc. (B+/Ba3)
		3,000,000		7.500			02/15/14		2,625,000
	Qwest Communications International, Inc. Series B (B+/Ba3)
		1,500,000		7.500			02/15/14		1,312,500
	Qwest Corp. (BBB-/Ba1)
		7,750,000		8.875			03/15/12		7,527,187
		1,450,000		7.500			10/01/14		1,276,000

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

GOLDMAN SACHS HIGH YIELD FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – (continued)
	Telecommunications – (continued)

	Windstream Corp. (BB/Ba3)
	$	4,000,000		8.125	%		08/01/13	$	3,830,000
		7,250,000		8.625			08/01/16		6,724,375
		2,200,000		7.000			03/15/19		1,782,000

									84,308,231


	Telecommunications – Cellular – 3.5%
	American Tower Corp. (BB+/Ba1)
		5,000,000		7.125			10/15/12		4,937,500
		3,000,000		7.000	^(a)		10/15/17		2,895,000
	Centennial Cellular Communications (B/B2)
		1,500,000		10.125			06/15/13		1,485,000
	Digicel Group Ltd. (Caa1)^(a)
		15,000,000		8.875			01/15/15		12,750,000
		7,573,000		9.125	^(b)		01/15/15		6,437,050
	Digicel Group Ltd. (B2)^(a)
		4,000,000		9.250			09/01/12		3,960,000
	Hellas Telecommunications III (CCC+/B3)
		EUR 7,250,000		8.500			10/15/13		7,348,718
	Hellas Telecommunications Luxembourg II (CCC+/Caa1)^(c)
		10,000,000		10.963			01/15/15		7,954,072
	Hellas Telecommunications Luxembourg V (B/B1)^(c)
		1,500,000		8.463			10/15/12		1,615,451
	Nextel Communications, Inc. (BB/Baa3)
	$	3,000,000		5.950			03/15/14		2,126,256
		14,000,000		7.375			08/01/15		9,426,929
	Orascom Telecom Finance SCA (B-/B2)^(a)
		17,250,000		7.875			02/08/14		14,835,000
	Sprint Capital Corp. (BB/Baa3)
		16,000,000		6.900			05/01/19		12,561,846
		4,500,000		8.750			03/15/32		3,452,757
	Sprint Nextel Corp. (BB/Baa3)
		10,000,000		6.000			12/01/16		7,650,438
	VIP Finance Ireland Ltd. for OJSC Vimpel Communications (BB+/Ba2)^(a)
		5,000,000		9.125			04/30/18		3,550,000
	Wind Acquisition Finance SA (B/B2)
		EUR 8,500,000		9.750			12/01/15		10,829,504
	$	16,750,000		10.750	^(a)		12/01/15		16,415,000

									130,230,521


	Telecommunications – Satellites – 0.9%
	Inmarsat Finance II PLC (BB-/B1)^(e)
		6,000,000		10.375			11/15/12		5,947,500
	Inmarsat Finance PLC (BB/Ba3)
		1,395,000		7.625			06/30/12		1,367,100
	Intelsat Bermuda Ltd. (CCC+/Caa2)
		5,000,000		11.250			06/15/16		4,887,500
		2,000,000		11.250	^(a)(e)		02/04/17		1,560,000
	Intelsat Bermuda Ltd. (CCC+/Caa3)
		1,500,000		6.500			11/01/13		960,000
	Intelsat Intermediate Holding Co. Ltd. (B-/Caa1)^(a)(e)
		4,500,000		9.500			02/01/15		3,611,250
	Intelsat Ltd. (CCC+/Caa3)
		9,000,000		7.625			04/15/12		6,840,000


	Intelsat Subsidiary Holding Co. Ltd. (BB-/B3)^(a)
		4,500,000		8.500			01/15/13		4,230,000
		3,250,000		8.875			01/15/15		3,022,500

									32,425,850


	Textiles & Apparel – 0.3%
	Oxford Industries, Inc. (B+/B2)
		3,500,000		8.875			06/01/11		3,163,125
	Perry Ellis International, Inc. (B-/B3)
		1,225,000		8.875			09/15/13		1,090,250
	Propex Fabrics, Inc. (WR)^(f)
		2,500,000		10.000			12/01/12		25,000
	Quiksilver, Inc. (B/B1)
		8,750,000		6.875			04/15/15		6,037,500
	Warnaco, Inc. (BB+/Ba3)
		2,000,000		8.875			06/15/13		2,010,000

									12,325,875


	Tobacco – 0.1%
	Alliance One International, Inc. (B+/B2)
		1,000,000		8.500			05/15/12		932,500
		4,500,000		11.000			05/15/12		4,443,750

									5,376,250


	Transportation – 0.1%
	Stena AB (BB+/Ba2)
		EUR 3,250,000		6.125			02/01/17		3,317,130

									3,317,130


	Utilities – Distribution – 0.5%
	AmeriGas Partners LP (Ba3)
	$	3,000,000		7.250			05/20/15		2,775,000
	AmeriGas Partners LP/AmeriGas Eagle Finance Corp. (Ba3)
		6,750,000		7.125			05/20/16		6,142,500
	Ferrellgas Finance LP (B+/Ba3)
		438,000		6.750			05/01/14		363,540
	Inergy LP/Inergy Finance Corp. (B+/B1)
		3,550,000		6.875			12/15/14		3,106,250
		3,000,000		8.250			03/01/16		2,760,000
	Suburban Propane Partners LP (B+/B1)
		5,000,000		6.875			12/15/13		4,450,000

									19,597,290


	Utilities – Electric – 3.9%
	Allegheny Energy Supply Co. LLC (BBB-/Ba1)^(a)
		5,000,000		8.250			04/15/12		5,075,000
	Dynegy Holdings, Inc. (B/B2)
		3,000,000		8.750			02/15/12		2,865,000
		4,000,000		7.500			06/01/15		3,440,000
		4,000,000		8.375			05/01/16		3,500,000
		1,500,000		7.125			05/15/18		1,140,000
		7,000,000		7.750			06/01/19		5,827,500
	Edison Mission Energy (BB-/B1)
		2,000,000		7.500			06/15/13		1,920,000
		5,000,000		7.750			06/15/16		4,725,000
		10,000,000		7.000			05/15/17		9,050,000
		6,000,000		7.200			05/15/19		5,310,000

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

GOLDMAN SACHS HIGH YIELD FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – (continued)
	Utilities – Electric – (continued)

	Elwood Energy LLC (BB/Ba1)
	$	2,174,430		8.159	%		07/05/26	$	2,022,220
	Intergen NV (BB-/Ba3)^(a)
		4,500,000		9.000			06/30/17		4,511,250
	Ipalco Enterprises, Inc. (BB/Ba1)
		1,500,000		8.625			11/14/11		1,515,000
	Midwest Generation LLC (BB+/Baa3)
		357,811		8.300			07/02/09		359,600
		4,174,001		8.560			01/02/16		4,174,001
	Mirant Americas Generation LLC (B-/B3)
		8,500,000		8.300			05/01/11		8,181,250
	Mirant Mid-Atlantic LLC (BB/Ba1)
		2,236,320		9.125			06/30/17		2,404,044
	Mirant North America LLC (B-/B1)
		7,500,000		7.375			12/31/13		6,975,000
	NRG Energy, Inc. (B/B1)
		13,250,000		7.250			02/01/14		12,190,000
		17,250,000		7.375			02/01/16		15,870,000
		6,000,000		7.375			01/15/17		5,460,000
	Orion Power Holdings, Inc. (BB/Ba3)
		3,500,000		12.000			05/01/10		3,526,250
	Reliant Energy, Inc. (B+/B1)
		4,000,000		7.625			06/15/14		2,970,000
		8,500,000		7.875			06/15/17		6,290,000
	The AES Corp. (BB-/B1)
		5,500,000		9.500			06/01/09		5,541,250
		5,250,000		9.375			09/15/10		5,315,625
		6,250,000		7.750			10/15/15		5,703,125
		6,500,000		8.000			10/15/17		5,980,000
		6,250,000		8.000	^(a)		06/01/20		5,468,750

									147,309,865


	Utilities – Pipelines – 2.0%
	El Paso Corp. (BB-/Ba3)
		11,000,000		7.000			06/15/17		10,037,500
	El Paso Natural Gas Co. (BB/Baa3)
		3,125,000		8.625			01/15/22		3,121,128
		2,375,000		7.500			11/15/26		2,198,539
		4,250,000		8.375			06/15/32		4,282,623
	Mark West Energy Partners LP/Mark West Energy Finance Corp. Series B (B+/B2)
		6,750,000		8.500			07/15/16		6,412,500
	Regency Energy Partners (B/B1)
		3,998,000		8.375			12/15/13		3,598,200
	Southern Natural Gas Co. (BB/Baa3)
		3,000,000		7.350			02/15/31		2,684,514
		3,000,000		8.000			03/01/32		2,878,050
	Southern Star Central Corp. (BB+/Ba2)
		1,000,000		6.750			03/01/16		922,500
	Targa Resources Partners LP (B/B2)^(a)
		2,000,000		8.250			07/01/16		1,720,000
	Targa Resources, Inc. (CCC+/B3)
		9,055,000		8.500			11/01/13		7,877,850


	Tennessee Gas Pipeline Co. (BB/Baa3)
		250,000		7.500			04/01/17		241,875
		3,000,000		7.000			10/15/28		2,649,014
		3,750,000		8.375			06/15/32		3,937,980
		1,500,000		7.625			04/01/37		1,405,697
	The Williams Cos., Inc. (BB+/Baa3)
		4,750,000		8.125			03/15/12		4,868,750
		3,000,000		7.625			07/15/19		2,985,000
		11,000,000		7.875			09/01/21		11,000,000
		1,000,000		7.500			01/15/31		920,000

									73,741,720


	TOTAL CORPORATE BONDS
	(Cost $3,862,357,166)							$	3,105,279,375


			Dividend			Maturity
	Shares		Rate			Date		Value

Preferred Stocks – 0.0%


	Lucent Technologies Capital Trust I
		1,000		7.750	%		03/15/17	$	390,000
	Pliant Corp.^(b)
		2,796		13.000			09/01/09		167,760
	Spanish Broadcasting Systems, Inc.^(b)(d)
		2,994		10.750			10/15/13		1,047,900


	TOTAL PREFERRED STOCKS
	(Cost $6,866,180)							$	1,605,660


	Shares		Description	Value

Common Stocks – 0.2%


		1,996,917	Adelphia Recovery Trust Series ACC-1*	$	39,938
		24,334	Axiohm Transaction Solutions, Inc.*		243
		195,700	Huntsman Corp.		2,465,820
		8,366	iPCS, Inc.*		186,311
		1,656	Nycomed*		23
		567,500	Parmalat SpA^(a)		1,323,240
		351	Pliant Corp.*		4
		33,975	Polymer Group, Inc.*		373,725
		2,500	Port Townsend Holdings Co., Inc.*		912,500
		20,372	Smurfit Kappa Funding PLC*		87,760
		410	Time Warner Cable, Inc.		9,922
		103,389	Viasystems Group, Inc.*		1,033,890
		1,051	Zemex Minerals Group, Inc.*		—


	TOTAL COMMON STOCKS
	(Cost $13,661,058)			$	6,433,376

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

GOLDMAN SACHS HIGH YIELD FUND


			Expiration
	Units		Date		Value

*Warrants^(f) – 0.0%**


	APP China Group Ltd.
		2,731		03/15/10	$	—
	Avecia Group PLC (Ordinary)^(a)
		40,000		07/01/10		400
	Avecia Group PLC (Preferred)^(a)
		40,000		01/01/10		400
	Merrill Corp. Class A^(a)
		1,500		05/01/09		15
	Parmalat SpA^(a)
		650		12/31/15		1,519


	TOTAL WARRANTS
	(Cost $1,028,072)				$	2,334

Shares

Description

Value

Special Purpose Entity* – 0.0%

526,991

Adelphia Recovery Trust

(Cost $63,727)

73,779

TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENT – 83.3%

(Cost $3,883,976,203)

3,113,394,524


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Repurchase Agreement^(g) – 10.6%


	Joint Repurchase Agreement Account II
	$	396,100,000		1.944	%		10/01/08	$	396,100,000
	Maturity Value: $396,121,389
	(Cost $396,100,000)


	TOTAL INVESTMENTS – 93.9%
	(Cost $4,280,076,203)							$	3,509,494,524


	OTHER ASSETS IN EXCESS OF LIABILITIES – 6.1%								227,945,124


	NET ASSETS – 100.0%							$	3,737,439,648

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


*		Non-income producing security.

(a)		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 $384,457,560, which represents approximately 10.3% of net assets as of September 30, 2008.

(b)		Pay-in-kind securities.

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

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

(e)		These securities are issued with a zero coupon or interest rate which increases to the stated rate at a set date in the future.

(f)		Security is currently in default/non-income producing.

(g)		Joint repurchase agreement was entered into on September 30, 2008. Additional information appears on page 63.

Security ratings disclosed, if any, are issued by Standard & Poor’s/Moody’s Investors Service. A brief description of the ratings is available in the Fund’s Statement of Additional Information.

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

GOLDMAN SACHS HIGH YIELD FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


		As a % of
		Net Assets

Investments Industry Classifications†


	Aerospace		0.7	%
	Agriculture		0.6
	Automotive		3.2
	Building Materials		2.7
	Capital Goods		2.4
	Chemicals		3.9
	Conglomerates		1.2
	Consumer Products		4.6
	Defense		1.1
	Energy		4.5
	Entertainment & Leisure		0.6
	Environmental		1.1
	Finance		1.3
	Food		1.5
	Gaming		4.9
	Health Care		7.0
	Home Construction		0.4
	Lodging		0.6
	Machinery		0.3
	Media		6.6
	Metals		1.8
	Packaging		3.6
	Paper		2.1
	Printing		0.2
	Publishing		2.5
	Real Estate		0.3
	Restaurants		0.5
	Retailers		1.9
	Services Cyclical		3.3
	Short-term Investments^#		16.7
	Technology		4.4
	Telecommunications		6.6
	Textiles & Apparel		0.3
	Tobacco		0.1
	Transportation		0.1
	Utilities		6.4


	TOTAL INVESTMENTS		100.0	%


†		Industry concentrations greater than one-tenth of one percent are disclosed.

#		Short-term investments include repurchase agreements and other assets/liabilities.

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

GOLDMAN SACHS HIGH YIELD FUND

ADDITIONAL INVESTMENT INFORMATION

FORWARD FOREIGN CURRENCY CONTRACTS — At September 30, 2008, the Fund had outstanding forward foreign currency exchange contracts, both to purchase and sell foreign currencies:

Open Forward Foreign Currency

Contract

Expiration

Value on

Current

Unrealized

Contracts with Unrealized Gain

Type

Date

Settlement Date

Value

Gain

British Pound

Sale

11/14/08

16,421,945

15,511,261

910,684

Euro

Sale

11/14/08

636,319,243

606,941,520

29,377,723

TOTAL

30,288,407

Open Forward Foreign Currency

Contract

Expiration

Value on

Current

Unrealized

Contracts with Unrealized Loss

Type

Date

Settlement Date

Value

Loss

Euro

Purchase

11/14/08

42,538,166

$41,714,861

$(823,305)

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

GOLDMAN SACHS INVESTMENT GRADE CREDIT FUND

Schedule of Investments

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – 81.9%


	Automotive – 0.6%
	Ford Motor Credit Co. LLC
	$	1,700,000		5.700	%		01/15/10	$	1,305,183


	Banks – 14.0%
	ANZ Capital Trust I^(a)(b)
		1,725,000		4.484			12/15/49		1,680,633
	ANZ Capital Trust II^(a)(b)
		800,000		5.360			12/29/49		714,416
	Astoria Financial Corp.^(b)
		225,000		5.750			10/15/12		193,957
	Banca Popolare di Bergamo Capital Trust^(b)(c)
		EUR 475,000		8.364			02/15/49		638,948
	Bank of America Corp.
	$	5,000,000		5.420			03/15/17		3,980,010
	Citigroup, Inc.
		1,750,000		5.500			04/11/13		1,527,507
		2,525,000		6.875			03/05/38		2,071,341
	HBOS PLC^(a)(b)(c)
		1,750,000		5.375			11/01/49		1,082,672
	HSBC Capital Funding LP^(a)(b)(c)
		1,050,000		4.610			06/27/49		826,126
	ING Capital Funding Trust III^(b)(c)
		1,075,000		8.439			12/31/49		991,268
	JPMorgan Chase & Co.^(b)(c)
		1,225,000		7.900			04/30/49		1,031,303
	JPMorgan Chase Capital Co. Series T^(b)
		1,650,000		6.550			09/29/36		1,213,217
	Manufacturers & Traders Trust Co.^(b)(c)
		1,495,000		5.585			12/28/20		1,146,655
	MUFG Capital Finance 1 Ltd.^(b)(c)
		3,025,000		6.346			07/25/49		2,132,332
	Nordea Bank Sweden AB^(a)(b)(c)
		2,380,000		8.950			11/29/49		2,146,213
	Northern Trust Co.
		1,625,000		6.500			08/15/18		1,656,809
	PNC Bank NA
		1,000,000		4.875			09/21/17		835,451
		850,000		6.000			12/07/17		770,477
	RBS Capital Trust II^(b)(c)
		1,000,000		5.512			09/30/49		690,334
	Resona Bank Ltd.^(a)(b)(c)
		1,475,000		5.850			04/15/49		1,084,839
	Resona Preferred Global Securities Ltd.^(a)(b)(c)
		3,475,000		7.191			07/30/49		2,579,809
	Royal Bank of Scotland Group PLC^(b)(c)
		2,425,000		9.118			03/31/49		2,351,474
	Santander Issuances SA Unipersonal^(a)(b)(c)
		700,000		5.805			06/20/16		671,650
	Sovereign Bank^(b)(c)
		455,000		4.511			08/01/13		333,069
	Sumitomo Mitsui Banking Corp.^(a)(b)(c)
		450,000		5.625			10/15/49		359,495
	Unicredito Italiano Capital Trust II^(a)(b)(c)
		500,000		9.200			10/05/49		479,190

									33,189,195


	Brokerage – 4.7%
	Bear Stearns Cos., Inc.
		5,600,000		6.400			10/02/17		5,139,885
		925,000		7.250			02/01/18		889,738
	Merrill Lynch & Co., Inc.
		1,200,000		6.400			08/28/17		1,022,519
	Morgan Stanley^(b)
		1,225,000		6.625			04/01/18		820,750
	Morgan Stanley & Co.^(b)
		5,100,000		6.250			08/28/17		3,162,209

									11,035,101


	Captive Auto – 0.2%
	General Motors Acceptance Corp.
		1,275,000		6.875			09/15/11		573,750


	Captive Financial^(b) – 0.7%
	Nelnet, Inc.
		1,760,000		5.125			06/01/10		1,631,178


	Distributor^(a)(b) – 0.4%
	Southern Star Central Gas Pipeline, Inc.
		1,100,000		6.000			06/01/16		997,447


	Diversified Manufacturing^(a)(b) – 0.8%
	Tyco International Group SA
		2,000,000		6.875			01/15/21		1,908,500


	Electric^(b) – 3.3%
	Arizona Public Service Co.
		500,000		6.250			08/01/16		471,114
	Commonwealth Edison Co.
		1,475,000		6.150			09/15/17		1,394,922
		1,025,000		5.900			03/15/36		824,877
	MidAmerican Energy Holdings Co.
		2,475,000		5.750			04/01/18		2,283,163
	NiSource Finance Corp.^(c)
		500,000		3.381			11/23/09		487,234
	Progress Energy, Inc.
		1,000,000		7.000			10/30/31		955,558
	Public Service Co. of Oklahoma Series G
		1,650,000		6.625			11/15/37		1,453,927

									7,870,795


	Energy^(b) – 4.6%
	EnCana Corp.
		2,325,000		6.500			02/01/38		1,875,819
	Kerr-McGee Corp.
		3,000,000		6.950			07/01/24		2,835,885
	Petro-Canada
		725,000		6.050			05/15/18		632,860
	Transocean, Inc.
		1,175,000		6.000			03/15/18		1,096,623
	Valero Energy Corp.
		2,600,000		6.125			06/15/17		2,433,629
	XTO Energy, Inc.
		2,350,000		6.750			08/01/37		2,085,195

									10,960,011

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

GOLDMAN SACHS INVESTMENT GRADE CREDIT FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – (continued)
	Energy^(b) – (continued)

	Entertainment – 0.5%
	Time Warner Entertainment Co.
	$	1,290,000		8.375	%		03/15/23	$	1,255,396


	Food & Beverage – 0.8%
	Cargill, Inc.^(a)(b)
		1,250,000		6.000			11/27/17		1,176,083
	Kraft Foods, Inc.
		750,000		6.500			08/11/17		721,652

									1,897,735


	Gaming^(b) – 0.2%
	Harrah’s Operating Co., Inc.
		500,000		5.500			07/01/10		385,000


	Life Insurance – 6.1%
	Americo Life, Inc.^(a)(b)
		550,000		7.875			05/01/13		544,814
	AXA Financial, Inc.^(b)
		805,000		7.750			08/01/10		843,358
	AXA SA^(a)(b)(c)
		550,000		6.463			12/31/49		314,118
	Lincoln National Corp.^(b)(c)
		1,600,000		7.000			05/17/66		1,341,680
	MetLife Capital Trust X^(a)(b)(c)
		600,000		9.250			04/08/38		569,519
	Nationwide Life Global Funding I^(a)
		2,450,000		5.450			10/02/12		2,453,442
	Phoenix Life Insurance Co.^(a)(b)
		2,600,000		7.150			12/15/34		2,481,598
	Reinsurance Group of America, Inc.
		625,000		6.750			12/15/11		601,829
		2,250,000		6.750	^(b)(c)		12/15/65		1,565,415
	SL Finance PLC^(b)(c)
		EUR 650,000		6.375			07/12/22		823,106
	Symetra Financial Corp.^(a)(b)
	$	1,600,000		6.125			04/01/16		1,289,192
		725,000		8.300	^(c)		10/15/37		501,705
	The MONY Group, Inc.^(b)
		1,000,000		8.350			03/15/10		1,050,136

									14,379,912


	Media – Cable – 3.9%
	British Sky Broadcasting Group PLC^(a)(b)
		1,975,000		6.100			02/15/18		1,892,682
	Comcast Cable Communications Holdings, Inc.
		2,200,000		8.375			03/15/13		2,307,338
		1,350,000		9.455			11/15/22		1,495,510
	Rogers Communications, Inc.^(b)
		2,500,000		6.800			08/15/18		2,365,075
	Time Warner Cable, Inc.^(b)
		1,300,000		5.400			07/02/12		1,236,581

									9,297,186


	Media – Non Cable^(b) – 1.3%
	News America, Inc.
		2,450,000		6.650			11/15/37		2,101,714
	Thomson Reuters Corp.
		1,025,000		6.500			07/15/18		980,272

									3,081,986


	Metals & Mining^(b) – 1.7%
	ArcelorMittal^(a)
		1,925,000		6.125			06/01/18		1,705,764
	Inco Ltd.
		2,050,000		5.700			10/15/15		1,852,915
	Xstrata Canada Corp.
		500,000		7.250			07/15/12		511,796

									4,070,475


	Noncaptive – Financial – 4.7%
	American General Finance Corp.^(d)
		1,225,000		8.450			10/15/09		857,133
	Countrywide Home Loans, Inc.
		3,025,000		5.625			07/15/09		2,860,830
		954,000		4.125			09/15/09		891,990
	GATX Financial Corp.^(b)
		3,400,000		5.125			04/15/10		3,426,574
	Nelnet, Inc.^(b)(c)
		625,000		7.400			09/29/36		426,299
	PHH Corp.^(b)
		750,000		7.125			03/01/13		683,760
	SLM Corp.
		2,750,000		5.400			10/25/11		1,925,000
��
									11,071,586


	Pipelines^(b) – 6.2%
	Energy Transfer Partners LP
		6,652,000		5.950			02/01/15		6,155,838
	Enterprise Products Operating LP
		2,350,000		5.600			10/15/14		2,186,740
		275,000		5.000			03/01/15		245,225
	Gulf South Pipeline Co. LP^(a)
		1,900,000		6.300			08/15/17		1,821,484
	ONEOK Partners LP
		1,400,000		6.150			10/01/16		1,321,943
	Southern Natural Gas Co.^(a)
		700,000		5.900			04/01/17		617,423
	Tennessee Gas Pipeline Co.
		1,150,000		8.375			06/15/32		1,207,647
	TransCanada PipeLines Ltd.^(c)
		1,500,000		6.350			05/15/67		1,186,623

									14,742,923


	Property/Casualty Insurance – 8.3%
	Ace Capital Trust II^(b)
		250,000		9.700			04/01/30		253,311
	Ace INA Holdings, Inc.^(b)
		1,500,000		6.700			05/15/36		1,333,863
	AON Capital Trust A
		900,000		8.205			01/01/27		778,595

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

GOLDMAN SACHS INVESTMENT GRADE CREDIT FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Bonds – (continued)
	Property/Casualty Insurance – (continued)

	Arch Capital Group Ltd.^(b)
	$	1,245,000		7.350	%		05/01/34	$	1,251,502
	Aspen Insurance Holdings Ltd.^(b)
		1,025,000		6.000			08/15/14		935,753
	Catlin Insurance Co. Ltd.^(a)(b)(c)
		1,050,000		7.249			01/19/49		468,730
	CNA Financial Corp.^(b)
		1,000,000		5.850			12/15/14		950,931
	Endurance Specialty Holdings Ltd.^(b)
		1,100,000		6.150			10/15/15		921,284
		1,350,000		7.000			07/15/34		1,202,835
	Everest Reinsurance Holdings, Inc.^(b)(c)
		1,500,000		6.600			05/15/37		876,699
	Marsh & McLennan Cos., Inc.^(b)
		1,000,000		5.150			09/15/10		998,288
	PartnerRe Finance^(b)(c)
		175,000		6.440			12/01/66		122,824
	QBE Capital Funding II LP^(a)(b)(c)
		925,000		6.797			06/01/49		738,490
	QBE Insurance Group Ltd.^(a)(b)(c)
		855,000		5.647			07/01/23		852,144
	Swiss Re Capital I LP^(a)(b)(c)
		2,475,000		6.854			05/29/49		2,103,468
	The Chubb Corp.^(b)(c)
		1,625,000		6.375			03/29/67		1,285,470
	The Travelers Cos., Inc.^(b)(c)
		1,300,000		6.250			03/15/37		999,874
	White Mountains Reinsurance Group Ltd.^(a)(b)
		1,725,000		6.375			03/20/17		1,547,385
	ZFS Finance USA Trust I^(a)(b)(c)
		1,375,000		6.150			12/15/65		998,553
	ZFS Finance USA Trust II^(a)(b)(c)
		1,275,000		6.450			12/15/65		918,009

									19,538,008


	Real Estate Investment Trusts – 11.7%
	Arden Realty LP^(b)(e)
		1,160,000		5.200			09/01/11		1,114,161
	BRE Properties, Inc.^(b)
		3,525,000		7.450			01/15/11		3,552,541
	Camden Property Trust^(b)
		1,650,000		4.375			01/15/10		1,599,432
	Colonial Realty LP^(b)
		1,750,000		6.050			09/01/16		1,467,989
	Health Care Property Investors, Inc.^(b)
		1,825,000		5.950			09/15/11		1,722,296
	Highwoods Properties, Inc.^(b)
		2,925,000		5.850			03/15/17		2,346,298
	Hospitality Properties Trust^(b)
		775,000		6.700			01/15/18		609,007
	iStar Financial, Inc. Series B^(b)
		2,950,000		5.700			03/01/14		1,445,500
	Liberty Property LP^(b)
		225,000		7.750			04/15/09		224,760
	Pan Pacific Retail Properties, Inc.^(b)
		1,350,000		5.950			06/01/14		1,301,971


	Post Apartment Homes LP
		1,500,000		7.700			12/20/10		1,550,540
		3,000,000		6.300	^(b)		06/01/13		2,918,865
	ProLogis^(b)
		2,250,000		5.500			04/01/12		2,157,523
	Shurgard Storage Centers, Inc.^(b)
		2,050,000		7.750			02/22/11		2,142,549
	Simon Property Group LP^(b)
		1,000,000		5.600			09/01/11		987,283
		1,350,000		6.125			05/30/18		1,195,831
	WEA Finance LLC^(a)(b)
		1,625,000		7.125			04/15/18		1,460,882

									27,797,428


	Restaurants^(b) – 0.5%
	Darden Restaurants, Inc.
		1,225,000		5.625			10/15/12		1,154,375


	Retailers^(b) – 0.3%
	CVS Caremark Corp.
		800,000		6.250			06/01/27		720,278


	Software^(b) – 0.4%
	Sabre Holdings Corp.
		1,300,000		6.350			03/15/16		832,000


	Technology^(b) – 0.9%
	Computer Sciences Corp.^(a)
		475,000		6.500			03/15/18		456,226
	Fiserv, Inc.
		1,775,000		6.125			11/20/12		1,745,821

									2,202,047


	Tobacco – 1.2%
	Imperial Tobacco Overseas BV
		1,200,000		7.125			04/01/09		1,199,669
	Philip Morris International, Inc.
		1,800,000		5.650			05/16/18		1,663,801

									2,863,470


	Wireless Telecommunications^(b) – 1.4%
	AT&T Wireless Services, Inc.
		900,000		8.750			03/01/31		959,564
	AT&T, Inc.
		1,175,000		6.400			05/15/38		986,083
	Sprint Capital Corp.
		1,500,000		7.625			01/30/11		1,429,387

									3,375,034


	Wirelines Telecommunications – 2.5%
	Deutsche Telekom International Finance BV
		1,650,000		8.750			06/15/30		1,673,162
	Telecom Italia Capital^(b)
		1,700,000		4.950			09/30/14		1,440,274

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

GOLDMAN SACHS INVESTMENT GRADE CREDIT FUND


	Principal		Interest			Maturity
	Amount		Rate			Date			Value

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

	Verizon Communications, Inc.^(b)
	$	3,125,000		6.100	%		04/15/18		$	2,904,630

										6,018,066


	TOTAL CORPORATE BONDS
	(Cost $224,793,000)								$	194,154,065




Mortgage-Backed Obligations – 12.8%


	Collateralized Mortgage Obligations – 3.6%
	Countrywide Alternative Loan Trust Series 2007-06, Class A4
	$	1,200,000		5.750	%		04/25/47		$	735,598
	Countrywide Alternative Loan Trust Series 2007-15CB, Class A5
		2,667,171		5.750			07/25/37			1,614,108
	Countrywide Alternative Loan Trust Series 2007-16CB, Class 4A7
		2,122,047		6.000			08/25/37			1,367,807
	Residential Asset Securitization Trust Series 2007-06, Class 1A3
		1,813,203		6.000			04/25/37			910,030
	Structured Adjustable Rate Mortgage Loan Trust Series 2005-21, Class 7A1^(c)
		2,387,731		6.011			11/25/35			1,654,285
	Washington Mutual Pass-Through Certificates Series 2005-AR15, Class A1A1^(c)
		1,728,319		3.467			11/25/45			1,106,700
	Wells Fargo Alternative Loan Trust Series 2007-PA2, Class 1A1
		1,761,497		6.000			06/25/37			1,202,016

										8,590,544


	Federal Agencies – 9.2%
	FNMA – 9.2%
		470,454		4.500			10/01/18			463,536
		103,308		4.500			11/01/18			101,789
		173,564		4.500			12/01/18			171,011
		678,603		4.500			05/01/19			666,502
		338,612		4.500			06/01/19			332,575
		235,457		4.500			08/01/19			231,258
		2,375,701		6.000			02/01/36			2,409,030
		1,624,300		6.000			10/01/36			1,647,088
		3,847,878		6.000			05/01/38			3,901,645
		6,000,000		5.500			TBA-15yr	^(f)		5,983,128
		6,000,000		4.500			TBA-15yr	^(f)		5,839,998

										21,747,560


	TOTAL MORTGAGE-BACKED OBLIGATIONS
	(Cost $32,191,727)								$	30,338,104


	TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENT – 94.7%
	(Cost $256,984,727)								$	224,492,169




Repurchase Agreement^(g) – 8.3%


	Joint Repurchase Agreement Account II
	$	19,600,000		1.944	%		10/01/08		$	19,600,000
	Maturity Value: $19,601,058
	(Cost $19,600,000)


	TOTAL INVESTMENTS – 103.0%
	(Cost $276,584,727)								$	244,092,169


	LIABILITIES IN EXCESS OF OTHER ASSETS – (3.0)%									(7,083,708	)


	NET ASSETS – 100.0%								$	237,008,461

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


(a)		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 $39,442,701, which represents approximately 16.6% of net assets as of September 30, 2008.

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

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

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

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

(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 $11,823,126 which represents approximately 5.0% of net assets as of September 30, 2008.

(g)		Joint repurchase agreement was entered into on September 30, 2008. Additional information appears on page 63.




Investment Abbreviations:
FNMA	—	Federal National Mortgage Association
LIBOR	—	London Interbank Offered Rate

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

GOLDMAN SACHS INVESTMENT GRADE CREDIT FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)

ADDITIONAL INVESTMENT INFORMATION

FORWARD FOREIGN CURRENCY CONTRACTS — At September 30, 2008, the Fund had outstanding forward foreign currency exchange contracts to sell foreign currencies:

Open Forward Foreign Currency

Contract

Expiration

Value on

Current

Unrealized

Contracts with Unrealized Gain

Type

Date

Settlement Date

Value

Gain

British Pound

Sale

11/21/08

485,003

$468,598

$16,405

Euro

Sale

10/31/08

2,276,369

2,194,874

81,495

TOTAL

$97,900

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: $2,028,125)

6.000%

TBA-15yr

^(d)

10/14/08

$2,000,000

$2,028,125

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		(8	)	December 2008	$	(1,930,900	)	$	17,470
Eurodollars		(8	)	March 2009		(1,940,700	)		4,346
Eurodollars		(8	)	June 2009		(1,939,200	)		1,047
Eurodollars		(13	)	September 2009		(3,148,438	)		(3,620	)
Eurodollars		(13	)	December 2009		(3,138,200	)		(1,020	)
5 Year Euro-Bond		(14	)	December 2008		(2,162,395	)		(5,952	)
U.S. Treasury Bonds		82		December 2008		9,608,094			(63,100	)
2 Year U.S. Treasury Notes		44		December 2008		9,391,250			17,202
5 Year U.S. Treasury Notes		127		December 2008		14,253,766			(227,631	)
10 Year U.S. Treasury Notes		(211	)	December 2008		(24,185,875	)		353,631


TOTAL								$	92,373

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

GOLDMAN SACHS INVESTMENT GRADE CREDIT FUND


ADDITIONAL INVESTMENT INFORMATION (continued)

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

INTEREST RATE SWAP CONTRACTS


					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	$	8,000		09/02/10	4.309%	3 month LIBOR	$	—		$	151,299
		7,000		10/19/15	4.965	3 month LIBOR		—			397,455
		500^(a)		12/17/18	4.750	3 month LIBOR		16,645			(7,515	)
		500^(a)		12/17/28	3 month LIBOR	5.000%		(26,307	)		7,306
		900^(a)		12/17/28	5.000	3 month LIBOR		(15,199	)		49,400
		4,000		03/19/35	5.288	3 month LIBOR		—			364,305
		2,800		04/09/35	5.266	3 month LIBOR		—			294,186
Credit Suisse First Boston Corp.		5,800^(a)		12/17/13	4.250	3 month LIBOR		35,689			(9,676	)
		1,200^(a)		12/17/18	4.750	3 month LIBOR		23,948			(2,034	)
		600^(a)		12/17/23	3 month LIBOR	4.750		7,370			(13,123	)
		1,100^(a)		12/17/28	3 month LIBOR	5.000		(36,303	)		(5,499	)
		1,000^(a)		12/17/38	5.000	3 month LIBOR		(9,021	)		55,265
Deutsche Bank Securities, Inc.		2,700^(a)		12/17/13	3 month LIBOR	4.250		(35,593	)		16,349
		9,100^(a)		12/17/13	4.250	3 month LIBOR		63,419			(22,605	)
		800^(a)		12/17/18	4.750	3 month LIBOR		14,000			609
		800^(a)		12/17/28	3 month LIBOR	5.000		(20,842	)		(9,559	)
JPMorgan Securities, Inc.		2,100^(a)		12/17/13	3 month LIBOR	4.250		(30,310	)		15,342
		9,100^(a)		12/17/13	4.250	3 month LIBOR		99,632			(58,818	)
		2,300^(a)		12/17/15	3 month LIBOR	4.500		10,310			(31,818	)
		2,300^(a)		12/17/18	4.750	3 month LIBOR		23,167			18,833
		11,700^(a)		12/17/23	3 month LIBOR	4.750		124,275			(236,470	)
		500^(a)		12/17/28	3 month LIBOR	5.000		(26,071	)		7,070
		1,900^(a)		12/17/38	5.000	3 month LIBOR		(17,870	)		105,733


TOTAL							$	200,939		$	1,086,035


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

CREDIT DEFAULT SWAP CONTRACTS


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

Protection Purchased:
Credit Suisse First Boston Corp.	Computer Sciences Corp. 5.000%, 02/15/13	$	475		(1.180	)%		03/20/18	$	—		$	(18,539	)
JPMorgan Securities, Inc.	CDX North America Investment Grade Index		5,000		(1.550	)		06/20/13		(16,695	)		44,859


TOTAL									$	(16,695	)	$	26,320

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

GOLDMAN SACHS LOCAL EMERGING MARKETS DEBT FUND

Schedule of Investments

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Sovereign Debt Obligations – 42.9%


	Argentina^(a) – 3.7%
	Republic of Argentina (B)
	ARS	25,868,695		2.000	%		01/03/16	$	5,736,304


	Colombia – 2.4%
	Republic of Colombia (BB+/Ba1)
	COP	9,000,000,000		9.850			06/28/27		3,753,231


	Egypt – 0.6%
	Arab Republic of Egypt (BB+/Ba1)
	EGP	5,900,000		8.750			07/18/12		918,078


	Hungary – 7.4%
	Hungary Government Bond (BBB+/A2)
	HUF	2,087,600,000		7.250			06/12/12		11,316,021


	Mexico – 6.4%
	Mexican Fixed Rate Bonds (A+/Baa1)
	MXN	16,000,000		10.000			12/05/24		1,654,899
	Mexican Udibonos (A+/Baa1)
		93,679,031		3.500			12/14/17		8,253,698

									9,908,597


	Peru – 6.6%
	Peru Government Bond (BBB+/Baa3)
	PEN	27,378,000		12.250			08/10/11		10,108,058


	Poland – 4.8%
	Poland Government Bond (A/A2)
	PLN	17,699,360		3.000			08/24/16		7,394,975


	Turkey – 8.3%
	Turkey Government Bond (BB)
	TRY	9,248,136		10.000			02/15/12		6,829,561
	Turkey Government Bond (Ba3)
		5,330,000		14.000			01/19/11		3,820,638
	Turkey Government Bond
		3,000,000		16.000			08/28/13		2,157,542

									12,807,741


	Uruguay – 2.7%
	Republic of Uruguay (BB-/B1+)
	UYU	93,904,027		5.000			09/14/18		4,188,302


	TOTAL SOVEREIGN DEBT OBLIGATIONS
	(Cost $73,082,000)							$	66,131,307





Corporate Obligations – 12.8%


	Brazil – 2.1%
	Morgan Stanley (A+/A1)^(b)
	BRL	9,000,000		10.090	%		05/03/17	$	2,601,292
	RBS-Zero Hora Editora Jornalistica SA (BB)
		2,000,000		11.250			06/15/17		725,209

									3,326,501


	Germany – 1.3%
	Kreditanstalt fuer Wiederaufbau (AAA/Aaa)
	NGN	255,000,000		8.500			01/18/11		1,953,450


	Russia – 6.5%
	Gazprombank (BBB-/A3)
	RUB	70,000,000		7.250			02/22/10		2,615,732
	Red Arrow International Leasing Plc (BBB+/Baa2)
		209,463,878		8.375			06/30/12		7,428,391

									10,044,123


	United Arab Emirates^(a) – 2.9%
	Jafz Sukuk Ltd. (A+/A1)
	AED	19,100,000		3.291			11/27/12		4,422,512


	TOTAL CORPORATE OBLIGATIONS
	(Cost $24,229,787)							$	19,746,586




Credit Linked Notes – 18.4%


	Egypt^(c)(d) – 3.6%
	Arab Republic of Egypt
	$	1,022,000		0.000	%		04/16/09	$	1,025,434
	EGP	28,155,912		0.000			08/06/09		4,608,240

									5,633,674


	Indonesia – 6.7%
	Republic of Indonesia

	IDR	46,000,000,000		10.000	^(e)		07/15/17		4,093,097
	$	7,670,484		10.000	^(b)(f)		07/18/17		6,173,436

									10,266,533


	Nigeria^(c)(g) – 8.1%
	Federal Republic of Nigeria
	NGN	1,571,288,113		0.000			05/11/09		12,552,671


	TOTAL CREDIT LINKED NOTES
	(Cost $30,340,870)							$	28,452,878




Foreign Debt Obligation – 0.8%


	Supranational – 0.8%
	International Bank Reconstruction & Development

	UYU	28,902,640		3.400	%		04/15/17	$	1,248,636
	(Cost $1,483,452)


	TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENT – 74.9%
	(Cost $129,136,109)							$	115,579,407

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

GOLDMAN SACHS LOCAL EMERGING MARKETS DEBT FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Repurchase Agreement^(h) – 28.9%


	Joint Repurchase Agreement Account II
	$	44,600,000		1.944	%		10/01/08	$	44,600,000
	Maturity Value: $44,602,408

	(Cost $44,600,000)


	TOTAL INVESTMENTS – 103.8%
	(Cost $173,736,109)							$	160,179,407


	LIABILITIES IN EXCESS OF OTHER ASSETS – (3.8)%								(5,921,619	)


	NET ASSETS – 100.0%							$	154,257,788

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)		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 $8,774,728, which represents approximately 5.7% of net assets as of September 30, 2008.

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

(d)		The underlying security is issued by Citigroup Inc.

(e)		The underlying security is issued by HSBC Corp.

(f)		The underlying security is issued by J.P. Morgan Chase.

(g)		The underlying security is issued by Standard Bank Plc.

(h)		Joint repurchase agreement was entered into on September 30, 2008. Additional information appears on page 63.

Security ratings disclosed, if any, are issued by Standard & Poor’s/Moody’s Investors Service. A brief description of the ratings is available in the Fund’s Statement of Additional Information.

ADDITIONAL INVESTMENT INFORMATION

FORWARD FOREIGN CURRENCY CONTRACTS — At September 30, 2008, the Fund had outstanding forward foreign currency exchange contracts, both to purchase and sell foreign currencies:


Open Forward Foreign Currency	Contract	Expiration	Value on		Notional		Unrealized
Contracts with Unrealized Gain	Type	Date	Settlement Date		Value		Gain

Malaysian Ringgit	Sale	11/04/08	$	1,000,000	$	994,098	$	5,902




Open Forward Foreign Currency	Contract	Expiration	Value on		Notional		Unrealized
Contracts with Unrealized Loss	Type	Date	Settlement Date		Value		Loss

Brazilian Real	Purchase	11/04/08	$	9,512,979	$	8,070,671	$	(1,442,308	)
Chilean Peso	Purchase	11/04/08		6,642,476		6,032,245		(610,231	)
Indian Rupee	Purchase	11/04/08		8,282,159		7,593,394		(688,765	)
Malaysian Ringgit	Purchase	11/04/08		8,497,624		8,055,022		(442,602	)
New Taiwan Dollar	Purchase	11/04/08		6,606,455		6,208,543		(397,912	)
Philippine Peso	Purchase	11/04/08		4,285,633		4,065,063		(220,570	)
Singapore Dollar	Purchase	12/17/08		7,797,286		7,787,470		(9,816	)
South African Rand	Purchase	12/17/08		7,592,056		7,402,949		(189,107	)
South Korean Won	Purchase	11/04/08		4,334,322		3,687,539		(646,783	)
Yuan Renminbi	Purchase	11/04/08		8,423,198		8,275,774		(147,424	)


TOTAL							$	(4,795,518	)

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

GOLDMAN SACHS LOCAL EMERGING MARKETS DEBT FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


ADDITIONAL INVESTMENT INFORMATION (continued)

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

INTEREST RATE SWAP CONTRACTS

Rates Exchanged

Notional

Payments

Amount

Termination

received by

made by

Unrealized

Swap Counterparty

(000s)

Date

the Fund

Loss

JPMorgan Securities, Inc.

BRL 12,000

01/02/12

12.660

Brazilian Interbank
Deposit Average

(206,212

)

6,000

01/02/12

13.360

Brazilian Interbank
Deposit Average

(57,701

)

TOTAL

(263,913

)

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

GOLDMAN SACHS U.S. MORTGAGES FUND

Schedule of Investments

September 30, 2008 (Unaudited)


	Principal			Interest			Maturity
	Amount			Rate			Date		Value
Mortgage-Backed Obligations – 105.4%


	Collateralized Mortgage Obligations – 12.8%
	Adjustable Rate Non-Agency^(a) – 11.5%
	Adjustable Rate Mortgage Trust Series 2004-5, Class 2A1
	$	430,026			4.997	%		04/25/35	$	331,430
	American Home Mortgage Assets Series 2006-3, Class 1A1
		6,173,080			3.825			10/25/46		3,647,144
	American Home Mortgage Assets Series 2006-3, Class 2A11
		13,534,024			3.795			10/25/46		8,011,258
	American Home Mortgage Assets Series 2007-1, Class A1
		5,980,678	��		3.555			02/25/47		3,008,145
	American Home Mortgage Investment Trust Series 2004-3, Class 1A
		27,931			3.577			10/25/34		22,097
	Bear Stearns Adjustable Rate Mortgage Trust Series 2004-1, Class 21A1
		602,774			4.470			04/25/34		477,622
	Bear Stearns Adjustable Rate Mortgage Trust Series 2005-03, Class 2A1
		1,624,213			5.077			06/25/35		1,255,271
	Bear Stearns Alt-A Trust II Series 2007-1, Class 1A1
		3,514,171			6.231			09/25/47		2,291,744
	Bear Stearns Alt-A Trust Series 2004-3, Class A1
		139,465			3.847			04/25/34		90,155
	Bear Stearns Alt-A Trust Series 2005-5, Class 21A1
		1,558,416			5.235			07/25/35		1,124,103
	Countrywide Alternative Loan Trust Series 2005-16, Class A1
		1,200,133			4.500			06/25/35		690,385
	Countrywide Alternative Loan Trust Series 2005-38, Class A1
		342,589			4.355			09/25/35		217,847
	Countrywide Alternative Loan Trust Series 2005-59, Class 1A1
		1,384,287			3.537			11/20/35		856,763
	Countrywide Alternative Loan Trust Series 2007-0A11, Class A1A
		6,723,978			4.235			11/25/47		3,546,864
	Countrywide Home Loan Trust Series 2003-52, Class A1
		624,276			4.673			02/19/34		442,735
	Countrywide Home Loan Trust Series 2004-HYB6, Class A2
		552,977			4.543			11/20/34		389,869
	Countrywide Home Loan Trust Series 2005-HYB4, Class 2A1
		2,335,222			4.902			08/20/35		1,563,642
	First Horizon Mortgage Pass-Through Trust Series 2004-AR6, Class 2A1
		205,813			4.750			12/25/34		185,947
	Harborview Mortgage Loan Trust Series 2005-14, Class 5A1A
		1,413,950			5.738			12/19/35		867,412
	Harborview Mortgage Loan Trust Series 2005-15, Class 2A11
		980,879			3.458			10/20/45		614,705
	Harborview Mortgage Loan Trust Series 2005-16, Class 2A1A
		525,373			3.270			01/19/36		334,927
	Harborview Mortgage Loan Trust Series 2005-16, Class 3A1A
		1,997,123			3.280			01/19/36		1,251,670
	Impac CMB Trust Series 2004-08, Class 1A
		157,798			3.927			10/25/34		42,857
	Impac CMB Trust Series 2005-06, Class 1A1
		1,861,247			3.457			10/25/35		987,892


	Impac Secured Assets Corp. Series 2005-2, Class A1W
		2,286,667			3.457			03/25/36		1,201,271
	Indymac Index Mortgage Loan Trust Series 2005-AR13, Class 4A1
		953,148			5.358			08/25/35		636,926
	Indymac Index Mortgage Loan Trust Series 2005-AR15, Class A1
		642,588			5.425			09/25/35		423,437
	JPMorgan Mortgage Trust Series 2005-A4, Class 2A1
		1,834,783			5.061			07/25/35		1,690,792
	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
		810,635			4.069			07/25/35		751,492
	JPMorgan Mortgage Trust Series 2007-A1, Class 5A2
		770,769			4.766			07/25/35		684,990
	Lehman XS Trust Series 2005-5N, Class 3A1A
		1,600,210			3.507			11/25/35		1,024,803
	Lehman XS Trust Series 2006-2N, Class 1A1
		2,160,719			3.467			02/25/46		1,297,884
	Lehman XS Trust Series 2007-04N, Class 3A2A
		2,662,666			3.605			03/25/47		1,549,021
	Lehman XS Trust Series 2007-16N, Class 2A2
		2,872,797			4.057			09/25/47		1,647,795
	Luminent Mortgage Trust Series 2006-5, Class A1A
		655,333			3.397			07/25/36		396,229
	Master Adjustable Rate Mortgages Trust Series 2006-OA2, Class 4A1A
		1,573,105			3.705			12/25/46		799,116
	Master Adjustable Rate Mortgages Trust Series 2007-1, Class I2A3
		1,703,316			4.055			01/25/47		874,401
	Merrill Lynch Alternative Note Asset Series 2007-AF1, Class AV1
		2,651,017			5.648			06/25/37		1,681,616
	Morgan Stanley Mortgage Loan Trust Series 2004-8AR, Class 4A1
		1,709,005			5.363			10/25/34		1,159,808
	Mortgage IT Trust Series 2005-5, Class A1
		1,333,737			3.467			12/25/35		1,021,210
	Residential Accredit Loans, Inc. Series 2005-Q05, Class A1
		1,676,248			3.855			01/25/46		1,010,495
	Residential Funding Mortgage Securities I Series 2005-SA4, Class 2A1
		1,334,887			5.202			09/25/35		1,035,985
	Residential Funding Mortgage Securities I Series 2005-SA4, Class 2A2
		1,479,625			5.180			09/25/35		1,260,229
	Sequoia Mortgage Trust Series 2004-09, Class A2
		517,702			3.745			10/20/34		451,898
	Structured Adjustable Rate Mortgage Loan Series 2004-06, Class 3A2
		1,089,438			4.700			06/25/34		960,604

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

GOLDMAN SACHS U.S. MORTGAGES FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

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

	Structured Adjustable Rate Mortgage Loan Series 2004-19, Class 2A2
	$	167,182		5.339	%		01/25/35	$	123,897
	Structured Adjustable Rate Mortgage Loan Trust Series 2004-05, Class 3A1
		711,097		4.380			05/25/34		500,376
	Structured Adjustable Rate Mortgage Loan Trust Series 2004-12, Class 3A2
		315,362		5.250			09/25/34		224,778
	Structured Adjustable Rate Mortgage Loan Trust Series 2004-16, Class 3A1
		1,360,410		5.450			11/25/34		1,023,664
	Structured Adjustable Rate Mortgage Loan Trust Series 2007-09, Class 1A1
		8,722,864		6.000			10/25/37		5,574,529
	Structured Adjustable Rate Mortgage Loan Trust Series 2007-10, Class 1A1
		6,035,707		6.000			11/25/37		3,859,638
	Structured Asset Mortgage Investments, Inc. Series 2007-AR3, Class 2A1
		6,425,252		3.397			09/25/47		3,626,156
	Structured Asset Mortgage Investments, Inc. Series 2007-AR6, Class A1
		3,876,169		4.355			08/25/47		2,183,174
	Structured Asset Securities Corp. Series 2003-26A, Class 3A5
		1,000,000		4.956			09/25/33		812,109
	Structured Asset Securities Corp. Series 2003-34A, Class 3A3
		55,322		4.958			11/25/33		48,899
	Structured Asset Securities Corp. Series 2003-37A, Class 3A7
		209,334		4.520			12/25/33		183,346
	Washington Mutual Mortgage Pass-Through Certificates Series 2004-AR3, Class A2
		964,869		4.243			06/25/34		871,270
	Washington Mutual Mortgage Pass-Through Certificates Series 2006-AR02, Class 1A1
		3,361,770		5.297			03/25/37		2,838,822
	Washington Mutual Mortgage Pass-Through Certificates Series 2006-AR07, Class 2A
		3,351,948		3.835			07/25/46		1,824,191
	Washington Mutual Mortgage Pass-Through Certificates Series 2006-AR09, Class 2A
		3,392,431		3.695			11/25/46		1,797,484
	Washington Mutual Mortgage Pass-Through Certificates Series 2007-0A1, Class 2A
		9,570,586		3.575			12/25/46		5,081,844
	Wells Fargo Alternative Loan Trust Series 2007-PA6, Class A1
		11,982,072		6.602			12/28/37		7,875,001
	Wells Fargo Mortgage Backed Securities Trust Series 2005-AR16, Class 1A1
		1,157,784		5.332			10/25/35		1,003,151

									94,738,346


	Interest Only^(b) – 0.0%
	ABN AMRO Mortgage Corp. Series 2003-5, Class A2
		41,907		5.500			04/25/33		3,532
	ABN AMRO Mortgage Corp. Series 2003-8, Class A2
		279,312		5.500			06/25/33		26,491
	CS First Boston Mortgage Securities Corp. Series 2002-AR31, Class 5X^(a)
		64,462		0.000			11/25/32		—
	CS First Boston Mortgage Securities Corp. Series 2003-08, Class 3A2
		1,874		5.500			04/25/33		27
	CS First Boston Mortgage Securities Corp. Series 2003-10, Class 3A13
		793		5.750			05/25/33		4
	CS First Boston Mortgage Securities Corp. Series 2003-11, Class 1A2
		11,302		5.500			06/25/33		271
	CS First Boston Mortgage Securities Corp. Series 2003-19, Class 1A2
		392,476		5.250			07/25/33		40,953
	FHLMC REMIC Series 2575, Class IB
		162,430		5.500			08/15/30		12,337
	FNMA REMIC Series 2004-47, Class EI^(a)(c)
		1,287,861		0.000			06/25/34		37,440
	FNMA REMIC Series 2004-62, Class DI^(a)(c)
		578,799		0.000			07/25/33		17,548
	FNMA Series E, Class E2
		450		506.000			09/01/10		1,777
	Master Adjustable Rate Mortgages Trust Series 2003-2, Class 3AX^(a)
		35,790		0.120			08/25/33		178
	Master Adjustable Rate Mortgages Trust Series 2003-2, Class 4AX^(a)
		11,312		0.320			07/25/33		104
	Washington Mutual Mortgage Pass-Through Certificates Series 2003-AR12, Class X^(a)
		650,147		0.481			02/25/34		260
	Washington Mutual Mortgage Pass-Through Certificates Series 2003-S3, Class 1A41
		205,949		5.500			06/25/33		16,479

									157,401


	Inverse Floaters^(a) – 0.0%
	GNMA Series 2001-48, Class SA
		23,672		18.401			10/16/31		25,769
	GNMA Series 2001-51, Class SB
		23,310		18.401			10/16/31		25,497
	GNMA Series 2001-59, Class SA
		35,689		18.239			11/16/24		38,139

									89,405


	Planned Amortization Class – 0.6%
	FNMA REMIC Series 2003-88, Class TH
		5,000,000		4.500			09/25/18		4,837,393

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

GOLDMAN SACHS U.S. MORTGAGES FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – (continued)
	Planned Amortization Class – (continued)

	Regular Floater^(a)(c) – 0.2%
	FHLMC REMIC Series 3038, Class XA
	$	70,549		0.000	%		09/15/35	$	61,971
	FHLMC REMIC Series 3313, Class AU
		70,422		0.000			04/15/37		72,609
	FHLMC REMIC Series 3325, Class SX
		1,068,422		0.000			06/15/37		1,077,480
	FHLMC Series 3013, Class XH
		167,896		0.000			08/15/35		164,504
	FNMA Series 2006-81, Class LF
		75,642		0.000			09/25/36		67,756

									1,444,320


	Sequential Fixed Rate – 0.5%
	Countrywide Alternative Loan Trust Series 2005-J11, Class 2A1
		680,781		6.000			10/25/35		511,862
	Countrywide Alternative Loan Trust Series 2006-5T2, Class A3
		762,596		6.000			04/25/36		594,310
	FHLMC REMIC Series 1703, Class GC
		348,125		6.500			04/15/09		347,793
	FHLMC REMIC Series 1823, Class A
		178,541		6.500			08/15/23		178,952
	FHLMC REMIC Series 2042, Class N
		654,411		6.500			03/15/28		674,820
	FHLMC REMIC Series 2590, Class NV
		1,000,000		5.000			03/15/18		989,865
	FNMA REMIC Series 2000-16, Class ZG
		910,032		8.500			06/25/30		973,457

									4,271,059


	TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS							$	105,537,924


	Commercial Mortgage-Backed Securities – 6.6%
	Interest Only^(a)(b)(d) – 0.0%
	Bear Stearns Commercial Mortgage Securities, Inc. Series 2003-T10, Class X2
		4,606,352		1.320			03/13/40		115,125
	JPMorgan Chase Commercial Mortgage Securities Corp. Series 2004-C1, Class X2
		4,750,326		1.145			01/15/38		86,800
	Prudential Commercial Mortgage Trust Series 2003-PWR1, Class X2
		5,025,344		1.615			02/11/36		139,739

									341,664


	Sequential Fixed Rate – 6.6%
	Banc of America Commercial Mortgage, Inc. Series 2005-5, Class A4
		4,000,000		5.115			10/10/45		3,606,049
	Banc of America Commercial Mortgage, Inc. Series 2005-6, Class A4
		5,000,000		5.352			09/10/47		4,456,388
	Bear Stearns Commercial Mortgage Securities Series 2006-PW13, Class A4
		10,295,000		5.540			09/11/41		9,171,124


	Bear Stearns Commercial Mortgage Securities Trust Series 2006-PW14, Class A4
		4,000,000		5.201			12/11/38		3,462,530
	Bear Stearns Commercial Mortgage Securities, Inc. Series 2005-PW10, Class A4
		5,000,000		5.405			12/11/40		4,610,231
	GE Capital Commercial Mortgage Corp. Series 2005-C4, Class A4
		5,000,000		5.334			11/10/45		4,449,614
	LB-UBS Commercial Mortgage Trust Series 2002-C1, Class A2
		59,806		5.969			03/15/26		59,759
	LB-UBS Commercial Mortgage Trust Series 2005-C5, Class A4
		2,000,000		4.954			09/15/30		1,750,849
	LB-UBS Commercial Mortgage Trust Series 2005-C7, Class A4
		2,000,000		5.197			11/15/30		1,772,157
	LB-UBS Commercial Mortgage Trust Series 2006-C1, Class A4
		13,500,000		5.156			02/15/31		11,786,385
	Morgan Stanley Capital I Series 2007-T25, Class A3
		7,000,000		5.514			11/12/49		5,923,598
	Wachovia Bank Commercial Mortgage Trust Series 2005-C21, Class A4
		4,000,000		5.210			10/15/44		3,537,747

									54,586,431


	TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES							$	54,928,095


	Federal Agencies – 86.0%
	Adjustable Rate FHLMC^(a) – 0.7%
		397,941		4.771			04/01/33		400,664
		5,113,342		4.571			08/01/35		5,101,477

									5,502,141


	Adjustable Rate FNMA^(a) – 1.0%
		27,425		4.361			07/01/22		27,507
		27,851		4.079			07/01/27		27,750
		75,175		4.079			11/01/27		74,903
		9,148		4.079			01/01/31		9,134
		10,313		4.079			06/01/32		10,306
		38,992		4.361			08/01/32		38,975
		90,642		4.361			05/01/33		90,659
		1,916,396		4.364			05/01/33		1,929,088
		542,471		3.911			06/01/33		545,821
		479,220		4.337			12/01/33		484,539
		693,307		4.583			08/01/34		703,599
		4,036,181		4.567			02/01/35		4,037,833
		33,770		4.079			11/01/35		33,790
		157,969		4.079			12/01/37		158,087
		73,256		4.079			01/01/38		73,312
		52,837		4.079			11/01/40		52,879

									8,298,182

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

GOLDMAN SACHS U.S. MORTGAGES 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) – 0.5%
	$	80,263		5.375	%		06/20/23	$	81,371
		36,624		5.625			07/20/23		37,029
		37,374		5.625			08/20/23		37,786
		100,563		5.625			09/20/23		101,672
		27,585		5.375			03/20/24		27,805
		252,836		5.375			04/20/24		255,668
		29,777		5.375			05/20/24		30,174
		249,028		5.375			06/20/24		252,559
		139,002		5.625			07/20/24		140,769
		198,010		5.625			08/20/24		200,553
		62,796		5.625			09/20/24		63,564
		71,507		5.125			11/20/24		71,380
		61,084		5.125			12/20/24		61,379
		51,656		5.375			01/20/25		52,167
		24,487		5.375			02/20/25		24,646
		87,433		5.375			05/20/25		88,342
		63,504		5.625			07/20/25		63,652
		32,726		5.375			02/20/26		32,926
		1,750		5.625			07/20/26		1,753
		95,196		5.375			01/20/27		95,793
		30,854		5.375			02/20/27		31,040
		262,236		5.375			04/20/27		264,867
		30,074		5.375			05/20/27		30,440
		30,422		5.375			06/20/27		30,728
		9,641		5.125			11/20/27		9,614
		37,201		5.125			12/20/27		37,087
		80,474		5.375			01/20/28		80,946
		28,419		5.250			02/20/28		28,512
		30,945		5.375			03/20/28		31,130
		178,881		5.625			07/20/29		178,825
		66,856		5.625			08/20/29		66,867
		24,107		5.625			09/20/29		24,125
		80,644		5.125			10/20/29		80,321
		108,713		5.125			11/20/29		108,245
		25,979		5.125			12/20/29		25,876
		35,993		5.250			01/20/30		36,063
		17,822		5.250			02/20/30		17,857
		69,477		5.250			03/20/30		69,585
		110,258		5.375			04/20/30		111,201
		279,604		5.375			05/20/30		281,988
		27,746		5.375			06/20/30		27,977
		242,277		5.625			07/20/30		242,345
		36,027		5.625			09/20/30		36,034
		70,264		4.875			10/20/30		69,728
		385,699		4.750			12/20/34		381,531

									4,023,920


	FHLMC – 18.4%
		168,414		5.000			12/01/12		169,311
		29,609		4.000			02/01/14		28,486
		488,793		4.000			03/01/14		470,256
		97,408		4.000			04/01/14		93,714
		108,653		4.000			05/01/14		107,203
		8,682		7.000			04/01/15		9,143
		21,819		7.000			02/01/16		23,043
		65,143		6.000			03/01/16		66,310


		337,193		4.500			05/01/18		332,115
		600,198		4.000			04/01/19		574,303
		785,735		5.500			04/01/20		795,195
		4,280,743		5.500			05/01/21		4,314,894
		2,949,857		4.500			08/01/23		2,841,283
		32,057		7.500			03/01/27		34,832
		2,184,016		6.500			01/01/29		2,262,380
		758,707		6.500			04/01/29		785,456
		386,179		6.500			12/01/29		400,005
		277,359		7.000			04/01/31		293,045
		2,420,048		7.000			09/01/31		2,556,911
		1,064,921		7.000			04/01/32		1,118,069
		2,411,003		7.000			05/01/32		2,531,332
		848,683		6.000			05/01/33		861,669
		351,402		6.500			08/01/33		362,477
		1,203,066		5.000			11/01/35		1,173,787
		3,842,227		5.000			12/01/35		3,748,718
		12,507,660		5.000			03/01/36		12,203,260
		10,656,404		5.000			04/01/36		10,397,058
		17,347,146		5.000			06/01/36		16,928,505
		5,719,711		5.500			12/01/37		5,693,874
		4,690,563		5.500			01/01/38		4,669,375
		54,308,917		5.500			02/01/38		54,071,453
		410,769		5.500			04/01/38		408,914
		5,551,082		5.500			05/01/38		5,526,008
		11,999,991		5.500			06/01/38		11,945,786
		4,000,000		5.500			07/01/38		3,981,931
		1,029,473		5.500			08/01/38		1,024,824

									152,804,925


	FNMA – 65.4%
		66,498		4.000			06/01/13		65,766
		90,555		4.000			07/01/13		89,893
		126,115		4.000			08/01/13		124,690
		241,040		4.000			09/01/13		238,242
		5,539		5.500			09/01/13		5,642
		504,949		4.000			10/01/13		498,921
		12,973		5.500			02/01/14		13,214
		383,888		4.000			04/01/14		378,388
		2,731		5.500			04/01/14		2,782
		6,188		5.500			04/01/16		6,273
		6,719		5.500			08/01/16		6,810
		81,402		5.500			11/01/16		82,513
		146,295		5.000			12/01/16		146,311
		65,977		5.500			12/01/16		66,879
		93,956		5.500			01/01/17		95,239
		27,019		5.000			02/01/17		27,023
		209,173		5.000			04/01/17		209,197
		59,329		5.000			05/01/17		59,336
		6,991		5.500			05/01/17		7,117
		299,155		5.000			06/01/17		299,189
		33,144		5.500			07/01/17		33,740
		4,745		5.500			09/01/17		4,830
		2,885,240		5.000			11/01/17		2,897,598
		2,123,172		5.000			12/01/17		2,129,398
		4,049,338		5.000			01/01/18		4,063,650

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

GOLDMAN SACHS U.S. MORTGAGES FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

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

	$	55,595		5.500	%		01/01/18	$	56,699
		1,268,595		5.000			02/01/18		1,271,795
		43,637		5.500			02/01/18		44,509
		5,941		6.000			02/01/18		6,087
		7,324,841		5.000			03/01/18		7,339,225
		4,267,808		5.000			04/01/18		4,264,865
		79,688		5.500			04/01/18		81,223
		2,651,171		5.000			05/01/18		2,649,522
		15,316		5.500			05/01/18		15,594
		57,546		6.000			05/01/18		58,952
		12,702,378		4.500			06/01/18		12,516,629
		3,483,777		5.000			06/01/18		3,487,377
		174,518		5.000			07/01/18		175,119
		3,518,867		4.000			08/01/18		3,415,435
		76,883		5.000			09/01/18		77,136
		71,440		5.000			10/01/18		71,675
		520,483		5.000			11/01/18		522,846
		331,209		6.000			11/01/18		339,308
		475,545		7.000			11/01/18		501,644
		533,135		4.000			12/01/18		517,464
		2,744,117		4.500			12/01/18		2,703,763
		622,695		6.000			12/01/18		637,919
		492,997		6.000			01/01/19		505,051
		11,376		5.500			02/01/19		11,559
		57,313		5.500			04/01/19		58,093
		174,034		6.000			04/01/19		179,043
		256,050		4.000			05/01/19		245,003
		14,241		5.500			05/01/19		14,497
		36,378		6.000			05/01/19		37,230
		75,586		5.500			07/01/19		76,614
		185,112		5.500			08/01/19		187,631
		90,965		5.500			09/01/19		92,202
		1,227,174		6.000			09/01/19		1,256,139
		1,257,128		4.000			10/01/19		1,202,891
		198,824		5.500			10/01/19		201,529
		60,167		5.500			11/01/19		60,985
		44,180		5.500			12/01/19		44,782
		349,212		5.500			02/01/20		354,836
		1,544,724		6.000			12/01/20		1,581,184
		79,143		5.500			01/01/21		80,219
		128,441		7.000			09/01/21		135,089
		360,785		7.000			06/01/22		379,359
		172,476		7.000			07/01/22		181,355
		933,134		5.000			07/01/23		927,456
		46,296		6.500			01/01/29		48,017
		3,664		7.000			01/01/29		3,855
		124,201		6.500			04/01/29		128,664
		83,425		6.500			05/01/29		86,422
		837,116		6.500			06/01/29		867,197
		420,312		6.500			07/01/29		435,414
		40,411		6.500			09/01/29		41,863
		3,606		7.000			09/01/29		3,792
		7,183		7.000			02/01/30		7,551
		81,456		7.000			08/01/31		85,238
		3,808		7.000			03/01/32		4,002
		2,803		7.000			04/01/32		2,946


		10,806		7.000			05/01/32		11,356
		27,651		7.000			06/01/32		29,057
		3,676		7.000			07/01/32		3,863
		6,631		6.500			08/01/32		6,849
		252,406		6.500			11/01/32		260,706
		204,214		6.000			01/01/33		207,744
		5,310		6.000			02/01/33		5,402
		1,606,872		5.500			04/01/33		1,607,146
		762,242		5.500			06/01/33		762,372
		123,787		6.000			06/01/33		125,776
		3,558,860		5.500			07/01/33		3,559,467
		41,068		6.000			07/01/33		41,728
		646,577		5.500			09/01/33		646,687
		101,777		6.000			09/01/33		103,412
		639,832		5.500			10/01/33		639,941
		25,476		6.000			10/01/33		25,886
		1,377,170		5.500			12/01/33		1,378,265
		14,309,897		5.500			01/01/34		14,312,336
		222,577		5.500			07/01/34		222,361
		7,588,609		5.500			11/01/34		7,582,787
		66,252		6.000			11/01/34		67,234
		1,751,537		6.000			12/01/34		1,777,503
		645,535		7.500			05/01/35		690,104
		6,302,072		5.000			01/01/36		6,150,667
		418,514		5.000			06/01/36		408,721
		354,168		7.500			08/01/36		374,926
		7,279,494		6.500			09/01/36		7,472,614
		24,842		5.500			10/01/36		24,796
		24,119		5.000			11/01/36		23,524
		737,846		6.000			11/01/36		748,197
		12,711,668		6.500			11/01/36		13,048,901
		1,416,782		5.000			12/01/36		1,381,859
		1,448,158		6.500			12/01/36		1,486,577
		174,024		7.500			12/01/36		184,224
		4,387,866		7.000			01/01/37		4,582,988
		854,673		5.000			02/01/37		833,423
		3,545,784		5.000			03/01/37		3,457,626
		5,008,837		6.500			03/01/37		5,141,718
		4,817,184		5.000			04/01/37		4,697,418
		23,434,147		7.000			04/01/37		24,481,406
		3,247,674		5.000			05/01/37		3,166,928
		3,575,406		5.500			05/01/37		3,568,552
		1,786,037		7.500			05/01/37		1,889,388
		10,037,762		5.000			06/01/37		9,788,203
		872,146		5.500			06/01/37		870,474
		3,756,345		5.000			07/01/37		3,662,955
		9,030,630		5.500			07/01/37		9,013,318
		1,391,241		6.500			07/01/37		1,428,072
		204,889		7.000			07/01/37		212,780
		1,756,394		7.500			07/01/37		1,858,743
		2,289,336		5.000			08/01/37		2,232,419
		3,098,994		5.500			08/01/37		3,093,053
		3,985,677		6.500			08/01/37		4,091,191
		74,144		7.000			08/01/37		77,000
		58,492		7.500			08/01/37		61,441
		961,377		5.000			09/01/37		937,482

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

GOLDMAN SACHS U.S. MORTGAGES FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date			Value

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

	$	8,178,560		5.500	%		09/01/37		$	8,162,882
		3,709,025		6.500			09/01/37			3,807,221
		22,768,933		7.000			09/01/37			23,816,172
		4,901,795		7.500			09/01/37			5,179,306
		651,469		5.000			10/01/37			635,273
		712,815		5.500			10/01/37			711,449
		1,308,578		6.500			10/01/37			1,343,238
		507,473		7.000			10/01/37			527,017
		2,943,176		7.500			10/01/37			3,110,120
		4,592,986		5.000			11/01/37			4,478,795
		421,291		5.500			11/01/37			420,483
		128,694		6.500			11/01/37			132,088
		9,329,195		7.500			11/01/37			9,862,370
		5,525,023		8.000			11/01/37			5,902,030
		1,438,334		5.000			12/01/37			1,402,575
		541,562		5.500			12/01/37			540,524
		931,822		6.500			12/01/37			956,491
		85,284		7.500			12/01/37			90,254
		3,462,161		8.000			12/01/37			3,667,845
		29,111		5.000			01/01/38			28,387
		1,511,683		5.500			01/01/38			1,508,785
		126,012		8.000			01/01/38			133,265
		31,126		5.000			02/01/38			30,352
		1,049,185		5.500			02/01/38			1,047,108
		721,447		5.000			03/01/38			703,438
		10,274,670		5.500			03/01/38			10,253,945
		822,366		5.500			03/01/38			820,708
		16,331,356		5.000			04/01/38			15,923,690
		1,371,247		5.500			04/01/38			1,368,481
		8,474,860		5.000			05/01/38			8,263,310
		7,700,879		5.500			05/01/38			7,685,347
		39,353,968		5.500			06/01/38			39,274,587
		96,516		6.500			06/01/38			99,071
		1,995,434		5.000			07/01/38			1,945,624
		5,304,142		5.500			07/01/38			5,293,444
		262,055		6.000			07/01/38			265,717
		2,982,207		5.000			08/01/38			2,909,667
		2,642,536		6.000			08/01/38			2,679,196
		45,357,460		6.000			09/01/38			46,045,000
		71,000,000		5.500			TBA-15yr	^(e)		70,800,348
		21,000,000		6.000			TBA-15yr	^(e)		21,269,052
		12,000,000		6.500			TBA-15yr	^(e)		12,303,744

										541,753,100


	GNMA – 0.0%
		1,018		6.000			12/15/23			1,053
		30,890		6.000			03/15/26			31,509
		25,904		6.000			04/15/26			26,423

										58,985


	TOTAL FEDERAL AGENCIES								$	712,441,253


	TOTAL MORTGAGE-BACKED OBLIGATIONS
	(Cost $933,280,229)								$	872,907,272




Agency Debenture^(f) – 0.4%


	Tennessee Valley Authority
	$	2,800,000		5.375	%		04/01/56		$	2,965,478
	(Cost $2,791,709)




Asset-Backed Securities – 0.9%


	Home Equity – 0.9%
	CIT Mortgage Loan Trust Series 2007-1, Class 2A1^(a)(d)
	$	1,978,890		4.207	%		10/25/37		$	1,682,057
	CIT Mortgage Loan Trust Series 2007-1, Class 2A2^(a)(d)
		570,000		4.457			10/25/37			285,000
	CIT Mortgage Loan Trust Series 2007-1, Class 2A3^(a)(d)
		1,100,000		4.657			10/25/37			412,500
	ContiMortgage Home Equity Loan Trust Series 1999-1, Class A7^(a)
		254		6.970			12/25/13			250
	Countrywide Home Equity Loan Trust Series 2002-E, Class A^(a)
		48,350		2.748			10/15/28			33,562
	Countrywide Home Equity Loan Trust Series 2003-D, Class A^(a)
		219,211		2.748			06/15/29			123,461
	Countrywide Home Equity Loan Trust Series 2004-G, Class 2A^(a)
		78,484		2.708			12/15/29			52,576
	Countrywide Home Equity Loan Trust Series 2004-I, Class A^(a)
		754,900		2.778			02/15/34			436,115
	Countrywide Home Equity Loan Trust Series 2004-J, Class 2A^(a)
		74,842		2.778			12/15/33			44,625
	Countrywide Home Equity Loan Trust Series 2004-O, Class 1A^(a)
		282,010		2.768			02/15/34			188,218
	Countrywide Home Equity Loan Trust Series 2005-A, Class 2A^(a)
		512,233		2.728			04/15/35			317,005
	GMAC Mortgage Corp. Loan Trust Series 2007-HE3, Class 1A1
		691,038		7.000			09/25/37			384,822
	GMAC Mortgage Corp. Loan Trust Series 2007-HE3, Class 2A1
		702,832		7.000			09/25/37			340,891
	Household Home Equity Loan Trust Series 2007-3, Class APT^(a)
		3,005,583		4.388			11/20/36			2,284,712

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

GOLDMAN SACHS U.S. MORTGAGES FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

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

	Morgan Stanley Capital, Inc. Series 2004-HE1, Class A4^(a)
	$	548,071		3.577	%		01/25/34	$	493,264
	Residential Asset Mortgage Products, Inc. Series 2004-RZ1, Class AII^(a)
		257,558		3.687			03/25/34		171,075


	TOTAL ASSET-BACKED SECURITIES
	(Cost $10,827,638)							$	7,250,133


	TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENT – 106.7%
	(Cost $946,899,576)							$	883,122,883




Repurchase Agreement^(g) – 5.5%


	Joint Repurchase Agreement Account II
	$	45,700,000		1.944	%		10/01/08	$	45,700,000
	Maturity Value: $45,702,468
	(Cost $45,700,000)


	TOTAL INVESTMENTS – 112.2%
	(Cost $992,599,576)							$	928,822,883


	LIABILITIES IN EXCESS OF OTHER ASSETS – (12.2)%								(100,676,417	)


	NET ASSETS – 100.0%							$	828,146,466

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 adviser and may be resold, normally to qualified institutional buyers in transactions exempt from registration. Total market value of Rule 144A securities amounted to $2,721,221, which represents approximately 0.3% 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 amounts to $104,373,144 which represents approximately 12.6% (excluding forward sales contracts, if any) of net assets as of September 30, 2008.

(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 63.




Investment Abbreviations:
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 U.S. MORTGAGES FUND

Schedule of Investments (continued)

September 30, 2008 (Unaudited)

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: $50,205,313)

7.000%

TBA-15yr^(e)

10/14/08

48,000,000

50,145,022

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		(15	)	December 2008	$	(3,620,438	)	$	13,690
Eurodollars		(15	)	March 2009		(3,638,813	)		(3,989	)
Eurodollars		(15	)	June 2009		(3,636,000	)		(3,801	)
Eurodollars		(24	)	September 2009		(5,812,500	)		(7,459	)
Eurodollars		(24	)	December 2009		(5,793,600	)		3,641
U.S. Treasury Bonds		54		December 2008		6,327,281			(22,878	)
2 Year U.S. Treasury Notes		124		December 2008		26,466,250			91,407
5 Year U.S. Treasury Notes		(191	)	December 2008		(21,436,766	)		(18,705	)
10 Year U.S. Treasury Notes		186		December 2008		21,320,250			(130,874	)


TOTAL								$	(78,968	)

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	$	12,000			09/02/10	4.309%	3 month LIBOR	$	—		$	226,948
		15,000			10/06/10	4.703	3 month LIBOR		—			600,773
		13,000	^(a)		12/17/13	4.250	3 month LIBOR		(53,232	)		111,539
		1,800	^(a)		12/17/18	4.750	3 month LIBOR		59,925			(27,054	)
		6,300	^(a)		12/17/23	3 month LIBOR	4.750%		21,197			(81,609	)
		1,600	^(a)		12/17/28	3 month LIBOR	5.000		(84,182	)		23,380
		3,000	^(a)		12/17/28	5.000	3 month LIBOR		(50,663	)		164,668
Credit Suisse First Boston Corp.		12,300	^(a)		12/17/13	4.250	3 month LIBOR		75,685			(20,519	)
		4,500	^(a)		12/17/18	4.750	3 month LIBOR		89,803			(7,629	)
		8,500	^(a)		12/17/23	3 month LIBOR	4.750		104,403			(185,913	)
		4,300	^(a)		12/17/28	3 month LIBOR	5.000		(141,149	)		(22,259	)
		1,900	^(a)		12/17/38	5.000	3 month LIBOR		(17,140	)		105,003
Deutsche Bank Securities, Inc.		35,300	^(a)		12/17/13	4.250	3 month LIBOR		246,009			(87,686	)
		3,400	^(a)		12/17/18	4.750	3 month LIBOR		59,500			2,587
		3,200	^(a)		12/17/28	3 month LIBOR	5.000		(83,367	)		(38,238	)
JPMorgan Securities, Inc.		16,700	^(a)		12/17/13	3 month LIBOR	4.250		(241,039	)		122,009
		3,600	^(a)		12/17/13	4.250	3 month LIBOR		23,391			(7,245	)
		19,700	^(a)		12/17/15	4.500	3 month LIBOR		78,328			105,891
		16,700	^(a)		12/17/18	4.750	3 month LIBOR		116,728			188,232
		45,800	^(a)		12/17/23	3 month LIBOR	4.750		656,901			(1,096,093	)
		1,900	^(a)		12/17/28	3 month LIBOR	5.000		(99,071	)		26,868
		3,600	^(a)		12/17/38	5.000	3 month LIBOR		(33,859	)		200,337


TOTAL								$	728,168		$	303,990


(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 SINGLE SECTOR 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

High Yield	$	396,100,000


Investment Grade Credit		19,600,000


Local Emerging Market Debt		44,600,000


U.S. Mortgages		45,700,000

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 SINGLE SECTOR FIXED INCOME FUNDS

Statements of Assets and Liabilities

September 30, 2008 (Unaudited)


	Emerging Markets
	Debt Fund

Assets:

Investments in securities, at value (identified cost $218,290,458, $3,883,976,203, $276,584,727, $129,136,109 and $946,899,576, respectively)	$	197,197,386
Repurchase agreement, at value which equals cost		—
Cash		2,501,079
Foreign currencies, at value (identified cost $5,605, $833,103, $0, $224,253 and $0, respectively)		5,603
Receivables:
Investment securities sold, at value		5,267,904
Interest and dividends, at value		4,268,895
Due from broker — swap collateral^(a)		1,250,000
Fund shares sold		413,188
Due from broker — variation margin, at value^(b)		156,250
Reimbursement from investment adviser		118,255
Due from custodian		—
Due from broker		—
Deferred offering costs		—
Forward foreign currency exchange contracts, at value		1,371,561
Swap contracts, at value (includes upfront payments made of $0, $0, $217,715, $0 and $594,475, respectively)		167,376
Other assets, at value		570


Total assets		212,718,067




Liabilities:

Due to Custodian		—
Payables:
Investment securities purchased, at value		4,907,708
Fund shares redeemed		4,327,647
Amounts owed to affiliates		176,257
Due to broker — variation margin, at value		159,179
Income distribution		45,191
Forward sales contract, at value (proceeds received $0, $0, $2,028,125, $0, and $50,205,313)		—
Forward foreign currency exchange contracts, at value		677,258
Swap contracts, at value (includes upfront payments received of $0, $0, $33,471, $0 and $133,693, respectively)		291,497
Accrued expenses and other liabilities		115,932


Total liabilities		10,700,669




Net Assets:

Paid-in capital		228,373,196
Accumulated undistributed (distribution in excess of) net investment income		224,336
Accumulated net realized gain (loss) from investment, futures, swap and foreign currency related transactions		(6,078,440	)
Net unrealized loss on investments, futures, swaps and translation of assets and liabilities denominated in foreign currencies		(20,501,694	)


NET ASSETS	$	202,017,398



Net Assets:
Class A	$	65,903,987
Class B		—
Class C		1,978,432
Institutional		134,134,979
Service		—
Separate Account Institutional Shares		—
Class IR		—
Class R		—



Total Net Assets	$	202,017,398


Shares Outstanding $0.001 par value (unlimited shares authorized):
Class A		6,309,214
Class B		—
Class C		189,871
Institutional		12,831,832
Service		—
Separate Account Institutional Shares		—
Class IR		—
Class R		—


Net asset value, offering and redemption price per share:^(c)
Class A		$10.45
Class B		—
Class C		10.42
Institutional		10.45
Service		—
Separate Account Institutional Shares		—
Class IR		—
Class R		—


(a)	Represents restricted cash on deposit with the counterparties as collateral for swaps for Emerging Markets Debt, Investment Grade Credit and U.S. Mortgages, respectively.
(b)	Includes cash on deposit with counterparty of $156,250 for Emerging Markets Debt Fund, relating to initial margin requirements on futures transactions.
(c)	Maximum public offering price per share for Class A shares of Emerging Markets Debt, High Yield, Investment Grade Credit, Local Emerging Markets Debt and U.S. Mortgages Funds (NAV per share multiplied by 1.0471) is $10.94, $6.69, $8.97, $9.27 and $9.72, 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 SINGLE SECTOR FIXED INCOME FUNDS


High Yield			Investment Grade			Local Emerging			U.S. Mortgages
Fund			Credit Fund			Markets Debt Fund			Fund





$	3,113,394,524		$	224,492,169		$	115,579,407		$	883,122,883
	396,100,000			19,600,000			44,600,000			45,700,000
	12,777,430			149,820			40,275			—
	827,800			—			209,208			—

	3,880,529			7,932,500			640,880			135,644,990
	93,962,164			3,820,432			1,854,941			3,823,418
	—			5,513			—			1,000,099
	167,718,211			386,000			713,154			—
	—			472,842			—			410,783
	96,507			29,812			—			124,566
	37,500			—			—			—
	—			—			17,880			—
	—			—			57,786			—
	30,288,407			97,900			5,902			—
	—			1,599,011			—			2,150,320
	18,677			474			3,617			1,413


	3,819,101,749			258,586,473			163,723,050			1,071,978,472







	8,428			—			—			94,593

	58,199,985			17,879,766			—			190,027,321
	13,840,261			490,224			3,957,194			717,994
	2,761,107			75,904			268,397			242,140
	—			416,075			—			621,796
	5,692,856			256,583			25,261			665,223
	—			2,028,125			—			50,145,022
	823,305			—			4,795,518			—
	—			302,412			263,913			1,118,162
	336,159			128,923			154,979			199,755


	81,662,101			21,578,012			9,465,262			243,832,006







	4,526,264,085			278,387,195			173,262,688			880,829,155
	6,739,787			(586,935	)		133,199			(1,111,799	)
	(52,973,567	)		(9,597,979	)		(383,090	)		11,920,490
	(742,590,657	)		(31,193,820	)		(18,755,009	)		(63,491,380	)


$	3,737,439,648		$	237,008,461		$	154,257,788		$	828,146,466




$	1,754,282,330		$	12,221,282		$	26,483,080		$	7,677,872
	74,992,913			—			—			—
	87,750,400			—			28,338			—
	1,807,388,937			11,068,198			127,746,370			303,474,797
	13,007,177			—			—			—
	—			213,718,981			—			516,993,797
	8,943			—			—			—
	8,948			—			—			—



$	3,737,439,648		$	237,008,461		$	154,257,788		$	828,146,466



	274,331,920			1,426,450			2,991,349			827,577
	11,714,495			—			—			—
	13,722,307			—			3,200			—
	282,287,265			1,289,322			14,427,859			32,659,601
	2,036,807			—			—			—
	—			24,918,818						55,639,199
	1,399			—			—			—
	1,399			—			—			—



	$6.39			$8.57			$8.85			$9.28
	6.40			—			—			—
	6.39			—			8.86			—
	6.40			8.58			8.85			9.29
	6.39			—			—			—
	—			8.58			—			9.29
	6.39			—			—			—
	6.39			—			—			—

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

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

Statements of Operations

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


	Emerging Markets
	Debt Fund


Investment income:

Interest — net of allowances (including securities lending income of $900, $0, $0, $0 and $0, respectively)	$	8,567,975
Dividends		—


Total investment income		8,567,975





Expenses:

Management fees		952,722
Distribution and Service fees^(b)		114,708
Transfer Agent fees^(b)		86,146
Custody and accounting fees		75,580
Professional fees		65,673
Registration fees		34,496
Printing fees		27,606
Trustee fees		7,018
Account Service Fee^(b)		—
Service share fees — Service Plan		—
Service share fees — Shareholder Administration Plan		—
Amortization of offering costs		—
Other		37,260


Total expenses		1,401,209


Less — expense reductions		(203,470	)


Net expenses		1,197,739


NET INVESTMENT INCOME		7,370,236





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

Net realized gain (loss) from:
Investment transactions		(5,616,379	)
Futures transactions		96,829
Swap contracts		(867,648	)
Foreign currency related transactions		147,705
Net change in unrealized gain (loss) on:
Investments		(19,499,103	)
Futures		46,805
Swap contracts		(82,730	)
Translation of assets and liabilities denominated in foreign currencies		1,006,227


Net realized and unrealized loss from investment, futures, swap and foreign currency related transactions		(24,768,294	)


NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(17,398,058	)


(a)	Net of $42,864 in foreign withholding tax for High Yield Fund.
(b)	Class specific Distribution and Service, Transfer Agent and Account Service fees were as follows:


	Distribution and Service Fees								Transfer Agent Fees														Account Service Fee
Fund	Class A		Class B		Class C		Class R		Class A		Class B		Class C		Institutional		Service		Class IR		Class R		Class A		Institutional
Emerging Markets Debt	$	104,394		N/A	$	10,314		N/A	$	54,285		N/A	$	1,341	$	30,520		N/A		N/A		N/A		N/A		N/A
High Yield		2,149,685	$	449,952		502,643	$	24		1,117,836	$	58,494		65,343		343,279	$	2,619	$	6	$	6		N/A		N/A
Investment Grade Credit		13,105		—		—		—		6,814		—		—		2,108		—		—		45,372	$	2,621	$	2,634
Local Emerging Markets Debt		27,625		—		589		—		14,365		—		77		21,178		N/A		N/A		N/A		N/A		N/A
U.S. Mortgages		10,781		N/A		N/A		N/A		5,606		N/A		N/A		57,110		N/A		N/A		103,198		2,156		71,387

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

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS


High Yield			Investment Grade			Local Emerging			U.S. Mortgages
Fund			Credit Fund			Markets Debt Fund			Fund






$	167,824,233	^(a)	$	8,032,594		$	4,873,965		$	21,040,695
	430,042			17,530			—			—


	168,254,275			8,050,124			4,873,965			21,040,695







	12,167,209			495,759			576,487			1,620,327
	3,102,304			13,105			28,214			10,781
	1,587,583			54,294			35,620			165,914
	139,199			22,592			76,348			115,494
	64,693			59,378			22,866			90,614
	102,916			33,723			500			50,066
	99,354			35,676			24,631			43,002
	7,018			7,018			7,018			7,018
	—			5,255			—			73,543
	16,367			—			—			—
	16,367			—			—			—
	—			—			75,001			—
	25,716			6,052			24,682			8,671


	17,328,726			732,852			871,367			2,185,430


	(110,409	)		(272,066	)		(213,531	)		(677,206	)


	17,218,317			460,786			657,836			1,508,224


	151,035,958			7,589,338			4,216,129			19,532,471








	(14,808,412	)		(11,411,326	)		(1,149,982	)		2,220,592
	—			434,587			—			1,266,394
	—			1,990,739			35,861			3,675,272
	(8,112,623	)		1,205,371			757,066			—

	(448,301,789	)		(18,916,159	)		(13,221,094	)		(32,170,149	)
	—			1,288,835			—			628,834
	—			(3,693,483	)		(135,565	)		(5,311,188	)
	69,905,606			81,695			(4,803,622	)		—


	(401,317,218	)		(29,019,741	)		(18,517,336	)		(29,690,245	)


$	(250,281,260	)	$	(21,430,403	)	$	(14,301,207	)	$	(10,157,774	)

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

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

Statements of Changes in Net Assets


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


From operations:

Net investment income	$	7,370,236		$	7,114,082		$	11,638,757
Net realized gain (loss) from investment, futures, swap and foreign currency related transactions		(6,239,493	)		766,990			3,567,242
Net change in unrealized gain (loss) on investments, futures, swaps and translation of assets and liabilities denominated in foreign currencies		(18,528,801	)		(9,194,684	)		3,003,579


Net increase (decrease) in net assets resulting from operations		(17,398,058	)		(1,313,612	)		18,209,578





Distributions to shareholders:

From net investment income
Class A Shares		(2,352,438	)		(2,259,201	)		(3,991,437	)
Class B Shares		—			—			—
Class C Shares		(50,307	)		(31,858	)		(14,850	)
Institutional Shares		(4,561,741	)		(5,110,620	)		(7,522,819	)
Service Shares		—			—			—
Separate Account Institutional Shares		—			—			—
Class IR Shares^(a)		—			—			—
Class R Shares^(a)		—			—			—
From net realized gains
Class A Shares		—			(1,107,574	)		(1,270,842	)
Class B Shares		—			—			—
Class C Shares		—			(14,463	)		(379	)
Institutional Shares		—			(2,422,864	)		(1,659,868	)
From capital
Class A Shares		—			—			—
Institutional Shares		—			—			—
Separate Account Institutional Shares		—			—			—



Total distributions to shareholders		(6,964,486	)		(10,946,580	)		(14,460,195	)





From share transactions:

Net proceeds from sales of shares		70,608,222			53,759,140			167,975,848
Proceeds received in connection with merger		—			—			—
Reinvestment of distributions		6,646,188			10,474,807			13,303,327
Cost of shares redeemed		(85,649,727	)^(b)		(91,165,062	)^(b)		(65,437,875	)^(b)


Net increase (decrease) in net assets resulting from share transactions		(8,395,317	)		(26,931,115	)		115,841,300


TOTAL INCREASE (DECREASE)		(32,757,861	)		(39,191,307	)		119,590,683





Net assets:

Beginning of period		234,775,259			273,966,566			154,375,883


End of period	$	202,017,398		$	234,775,259		$	273,966,566


Accumulated undistributed (distribution in excess of) net investment income	$	224,336		$	(181,414	)	$	296,193


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


(a)	Commenced operations on November 30, 2007.


(b)	Net of $31,107, $1,392 and $5,494 and $107,327, $113,159 and $310,735 redemption fees for Emerging Markets Debt Fund and High Yield Fund, respectively, for the six months ended September 30, 2008, period ended March 31, 2008 and year ended October 31, 2007, respectively.

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

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS


High Yield Fund									Investment Grade Credit Fund
For the									For the
Six Months Ended			For the Period			For the			Six Months Ended			For the Period			For the
September 30, 2008			November 1, 2007			Year Ended			September 30, 2008			November 1, 2007			Year Ended
(Unaudited)			to March 31, 2008*			October 31, 2007			(Unaudited)			to March 31, 2008*			October 31, 2007




$	151,035,958		$	118,336,853		$	243,697,927		$	7,589,338		$	6,142,235		$	12,908,029

	(22,921,035	)		(32,905,610	)		35,445,816			(7,780,629	)		(1,093,653	)		689,530

	(378,396,183	)		(343,468,751	)		(89,891,894	)		(21,239,112	)		(5,975,351	)		(2,576,164	)


	(250,281,260	)		(258,037,508	)		189,251,849			(21,430,403	)		(926,769	)		11,021,395








	(68,656,824	)		(59,885,688	)		(121,637,861	)		(301,319	)		(162,801	)		(343,303	)
	(3,247,995	)		(3,355,548	)		(7,218,281	)		—			—			—
	(3,636,098	)		(3,536,092	)		(7,427,455	)		—			—			—
	(71,343,216	)		(61,831,495	)		(110,683,239	)		(323,520	)		(195,322	)		(267,488	)
	(515,407	)		(320,088	)		(379,636	)		—			—			—
	—			—			—			(6,986,091	)		(4,625,270	)		(11,567,094	)
	(402	)		(289	)		—			—			—			—
	(377	)		(273	)		—			—			—			—

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

	—			—			—			—			(31,121	)		—
	—			—			—			—			(37,338	)		—
	—			—			—			—			(884,170	)		—


	(147,400,319	)		(128,929,473	)		(247,346,472	)		(7,610,930	)		(5,936,022	)		(12,177,885	)







	1,213,238,645			664,724,345			1,746,992,051			53,727,072			37,545,092			82,437,849
	—			—			131,649,843			—			—			—
	115,389,754			102,424,969			195,239,156			6,008,016			4,642,385			9,674,188
	(676,885,087	)^(b)		(563,381,634	)^(b)		(1,231,153,803	)^(b)		(39,851,665	)		(48,024,294	)		(44,948,140	)


	651,743,312			203,767,680			842,727,247			19,883,423			(5,836,817	)		47,163,897


	254,061,733			(183,199,301	)		784,632,624			(9,157,910	)		(12,699,608	)		46,007,407








	3,483,377,915			3,666,577,216			2,881,944,592			246,166,371			258,865,979			212,858,572


$	3,737,439,648		$	3,483,377,915		$	3,666,577,216		$	237,008,461		$	246,166,371		$	258,865,979


$	6,739,787		$	3,104,148		$	13,282,715		$	(586,935	)	$	(565,343	)	$	52,088

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

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

Statements of Changes in Net Assets


	Local Emerging Markets Debt
	For the
	Six Months Ended			For the
	September 30, 2008			Period Ended
	(Unaudited)			March 31, 2008(a)


From operations:

Net investment income	$	4,216,129		$	304,110
Net realized gain (loss) from investment, futures, swap and foreign currency related transactions		(357,055	)		(188,558	)
Net change in unrealized gain (loss) on investments, futures, swaps and translation of assets and liabilities denominated in foreign currencies		(18,160,281	)		(594,728	)


Net increase (decrease) in net assets resulting from operations		(14,301,207	)		(479,176	)





Distributions to shareholders:

From net investment income
Class A Shares		(689,753	)		(1,667	)
Class C Shares		(3,081	)		(66	)
Institutional Shares		(3,430,512	)		(100,523	)
Separate Account Institutional Shares		—			—
From capital
Class A Shares		—			(3,181	)
Class C Shares		—			(127	)
Institutional Shares		—			(191,803	)


Total distributions to shareholders		(4,123,346	)		(297,367	)





From share transactions:

Net proceeds from sales of shares		149,755,027			62,655,249
Reinvestment of dividends and distributions		3,995,438			296,418
Cost of shares redeemed		(43,108,869	)^(b)		(134,379	)


Net increase in net assets resulting from share transactions		110,641,596			62,817,288


TOTAL INCREASE (DECREASE)		92,217,043			62,040,745





Net assets:

Beginning of period		62,040,745			—


End of period	$	154,257,788		$	62,040,745


Accumulated undistributed (distribution in excess of) net investment income	$	133,199		$	40,416


*		The Fund changed its fiscal year end from October 31 to March 31.
(a)		Commenced operations on February 15, 2008.
(b)		Net of $20 redemption fees for Local Emerging Markets Debt Fund.

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

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS


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




$	19,532,471		$	14,577,983		$	21,311,799
	7,162,258			7,874,502			(682,434	)

	(36,852,503	)		(28,234,984	)		3,490,822


	(10,157,774	)		(5,782,499	)		24,120,187








	(202,881	)		(140,480	)		(325,116	)
	—			—			—
	(7,251,918	)		(3,399,507	)		(7,058,792	)
	(13,197,368	)		(11,502,439	)		(15,163,742	)

				—
				—			—
	—			—			—


	(20,652,167	)		(15,042,426	)		(22,547,650	)







	252,501,228			96,889,098			379,310,165
	16,343,513			11,951,182			18,414,913
	(88,339,158	)		(103,222,843	)		(138,044,541	)


	180,505,583			5,617,437			259,680,537


	149,695,642			(15,207,488	)		261,253,074







	678,450,824			693,658,312			432,405,238


$	828,146,466		$	678,450,824		$	693,658,312


$	(1,111,799	)	$	7,897		$	(96,144	)

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

GOLDMAN SACHS SINGLE SECTOR 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

Emerging Markets Debt, Local Emerging Markets Debt	A, C and Institutional	Non-diversified


High Yield	A, B, C, Institutional, Service, IR and R	Diversified


Investment Grade Credit, U.S. Mortgages	A, Institutional and Separate Account Institutional	Diversified

Class A Shares of the Funds charge a maximum initial sales charge of 4.50%. The contingent deferred sales charge for Class B Shares is 5.00% maximum declining to zero after six years for High Yield. Class C Shares have a contingent deferred sales charge of 1.00% during the first 12 months. Institutional, Service, Separate Account Institutional, 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.

High Yield, Emerging Markets Debt and Local Emerging Markets Debt will charge a 2% redemption fee on the redemption of shares (including by exchange) held for 30 calendar days or less (60 calendar days or less for High Yield). For this purpose, the Funds use a first-in first-out (“FIFO”) method so that shares held longest will be treated as being redeemed first and shares held shortest will be treated as being redeemed last.

The Emerging Markets Debt, High Yield, Investment Grade Credit and U.S. Mortgages Funds changed their fiscal year end from October 31 to March 31. GSAM has agreed to reimburse these Funds for any cost associated with changing these 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 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.

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

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’ NAV. 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. Market discounts, original issue discount (“OID”) and market premiums on debt securities are accreted/amortized to interest income over the life of the security with a corresponding adjustment in the cost basis of that security. In addition, it is the Funds’ policy to accrue for estimated capital gains taxes, if any, on foreign securities held by the Funds, which are subject to such taxes.

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 and tax-exempt 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

Emerging Markets Debt, High Yield, Investment Grade Credit, Local Emerging Markets Debt and U.S. Mortgages		Daily/Monthly		Annually

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.

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2008 (Unaudited)


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

E. Foreign Currency Translations — The books and records of the Funds are accounted for in U.S. dollars. Amounts denominated in foreign currencies are translated into U.S. dollars (using 4:00 p.m. Eastern Time exchange rates) on the following basis: (i) investment valuations, foreign currency and other assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars based upon current exchange rates; and (ii) purchases and sales of foreign investments, income and expenses are converted into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions.

Net realized and unrealized gain (loss) on foreign currency transactions represents: (i) foreign exchange gains and losses from the sale and holdings of foreign currencies; (ii) currency gains and losses between trade date and settlement date on investment security transactions and forward exchange contracts; and (iii) gains and losses from the difference between amounts of dividends, interest and foreign withholding taxes recorded and the amounts actually received. The effect of changes in foreign currency exchange rates on securities and derivative instruments are segregated in the Statements of Operations from the effects of changes in market prices of those investments, and are included with the net realized and unrealized gain (loss) on foreign currency related transactions. Net unrealized foreign exchange gains and losses arising from changes in the value of other assets and liabilities as a result of changes in foreign exchange rates are included as increases and decreases in unrealized gain (loss) on foreign currency related transactions.

Non U.S. currency symbols utilized throughout the report are defined as follows:


AED = Arab Emirate Dollar		IDR = Indonesian Rupiah
ARS = Argentine Peso		KZT = Kazakhstan Tenge
BRL = Brazilian Real		MXN = Mexican Peso
CAD = Canadian Dollar		NGN = Nigerian Naira
COP = Colombian Peso		PEN = Peruvian Nuevo Sol
EGP = Egyptian Pound		PLN = Polish Zloty
EUR = Euro		RUB = Russian Ruble
GBP = British Pound		TRY = Turkish Lira
HUF = Hungarian Forint		UYU = Uruguayan Peso

F. Forward Foreign Currency Exchange Contracts — The Funds (except the U.S. Mortgages Fund) may enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date as a hedge or cross-hedge against either specific transactions or portfolio positions. The Funds may also purchase and sell forward foreign currency exchange contracts to seek to increase total return. All commitments are “marked-to-market” daily at the applicable translation rates and any resulting unrealized gains or losses are recorded by the Funds. The Funds record realized gains or losses on the settlement date of a contract.

Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The contractual amounts of forward foreign currency contracts do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. For forward foreign currency exchange contracts, the Funds segregate sufficient cash and/or securities to cover any commitments under these contracts.

G. 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.

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

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.

H. Mortgage and Asset-Backed Securities — Certain 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.

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.

I. Mortgage Dollar Rolls — The U.S. Mortgages and Investment Grade Credit 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.

J. Offering Costs — Offering costs paid in connection with the offering of shares of Local Emerging Markets Debt are amortized on a straight-line basis over 12 months from the date of commencement of operations.

K. Redemption Fees — A 2% redemption fee will be imposed on the redemption of shares (including by exchange) held for 60 calendar days or less with respect to the High Yield Fund and 30 days or less with respect to the Emerging Markets Debt and Local Emerging Markets Debt Funds. For this purpose, the Funds use a first-in first-out method so that shares held longest will be treated as being redeemed first and shares held shortest will be treated as being redeemed last.

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2008 (Unaudited)


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Redemption fees are reimbursed to a Fund and are reflected as a reduction in share redemptions. Redemption fees are credited to Paid-in Capital and are allocated to each share class of a Fund on a pro-rata basis at the time of payment.

L. Repurchase Agreements — The Funds may enter in 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.

M. 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.

A total return swap is an agreement that gives the Funds the right to receive the appreciation in the value of a specified security, index or other instrument in return for a fee paid to the counterparty, which will typically be an agreed upon

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

interest rate. If the underlying asset declines in value over the term of the swap, the Funds may also be required to pay the dollar value of that decline to the counterparty.

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.

N. 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:


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

Emerging Markets Debt		0.80	%		0.80	%		0.72	%		0.68	%		0.67	%		0.80	%		0.80	%


High Yield		0.70			0.70			0.63			0.60			0.59			0.67			0.67


Investment Grade Credit		0.40			0.36			0.34			0.33			0.32			0.40			0.33	*


Local Emerging Markets Debt		0.90			0.90			0.81			0.77			0.75			0.90			0.90


U.S. Mortgages		0.40			0.36			0.34			0.33			0.32			0.40			0.33	*


		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 rate of 0.33% as an annual percentage rate of average daily net assets each of Investment Grade Credit and U.S. Mortgages for the six months ended September 30, 2008.

GOLDMAN SACHS SINGLE SECTOR 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 do not exceed the maximum cap on “service fees” imposed by the Financial Industry Regulatory Authority.

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

Emerging Markets Debt

3,300

N/A

—

High Yield

63,400

—

100

Investment Grade Credit

200

N/A

Local Emerging Markets Debt

300

N/A

—

C. Transfer Agency Agreement — Goldman Sachs also serves as 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 assets for Class A, Class B, Class C, Class IR and Class R Shares and 0.04% of the average daily net assets for Institutional, Separate Account Institutional, and Service Shares. Goldman Sachs has voluntarily agreed to waive a portion of the Transfer Agent Fees equal to 0.02% of the average daily net assets attributable to Institutional and Separate Account Institutional Shares of Investment Grade Credit and U.S. Mortgages. Goldman may discontinue or modify the waiver in the future at its discretion.

D. Service Plan and Shareholder Administration Plans — The Trust, on behalf of High Yield, has adopted a Service Plan and Shareholder Administration Plan for Service Shares. These plans allow for Service Shares to compensate service organizations for providing varying levels of personal and account administration and shareholder administration services to their customers who are beneficial owners of such shares. The Service Plan and Shareholder 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 Shares.

E. Account Service Plans — The Trust, on behalf of Class A and Institutional Shares of Investment Grade Credit and U.S. Mortgages Funds, has adopted Account Service Plans. Under these Plans, Goldman Sachs and authorized dealers are entitled to receive a fee for account service and account maintenance equal to, on an annual basis, 0.05% of the average daily net assets of U.S. Mortgages and Investment Grade Credit Funds attributable to Class A and Institutional Shares.

F. Other Agreements — GSAM has voluntarily agreed to limit certain “Other Expenses” of the Funds (excluding Management fees, Distribution and Service fees, Transfer Agent fees and expenses, Service Share fees, Account Service fees, taxes, interest, brokerage fees and litigation, indemnification, shareholder meetings and other extraordinary expenses, exclusive of any custody and transfer agent fee credit reductions) to the extent 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

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS


3. AGREEMENTS (continued)

paid monthly. In addition, the Funds are not obligated to reimburse GSAM for prior fiscal year expense reimbursements, if any. The Other Expenses limitations for Emerging Markets Debt, High Yield, Investment Grade Credit, Local Emerging Markets Debt and U.S. Mortgages as an annual percentage rate of average daily net assets were 0.044%, 0.024%, 0.004%, 0.074% and 0.004%, respectively.

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


							Fee Credits
	Fee Waivers				Other		Custody				Total
	Management		Transfer		Expense		Fee		Transfer		Expense
Fund	Fees		Agent Fees		Reimbursement		Reductions		Agent Fee		Reductions

Emerging Markets Debt	$	—	$	—	$	195	$	8	$	—	$	203


High Yield		—		—		58		42		10		110


Investment Grade Credit		87		24		159		2		—		272


Local Emerging Markets Debt		—		—		184		30		—		214


U.S. Mortgages		283		80		299		15		—		677

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


	Management		Distribution and		Transfer		Over
Fund	Fees		Service Fees		Agent Fees		Reimbursement		Total

Emerging Markets Debt	$	146	$	17	$	13	$	—	$	176


High Yield		1,996		503		262		—		2,761


Investment Grade Credit		68		3		5		—		76


Local Emerging Markets Debt		128		7		8		125		268


U.S. Mortgages		226		2		14		—		242

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 SINGLE SECTOR 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:

Emerging Markets Debt

High Yield

Investments in

Securities

Derivatives-

Securities

Derivatives-

Level

Long-Assets

Short-Liabilities

Assets

Liabilities

Long-Assets

Short-Liabilities

Assets

Liabilities

Level 1

–

46,805

–

4,488,235

–

Level 2

195,475,383

–

1,538,937

(968,755

)

3,498,979,557

–

30,288,407

(823,305

)

Level 3

1,722,003

–

6,026,732

–

Total

197,197,386

–

1,585,742

(968,755

)

3,509,494,524

–

30,288,407

(823,305

)

Investment Grade Credit

Local Emerging Markets Debt

Investments in

Securities

Derivatives-

Securities

Derivatives-

Level

Long-Assets

Short-Liabilities

Assets

Liabilities

Long-Assets

Short-Liabilities

Assets

Liabilities

Level 1

–

393,696

(301,323

)

–

Level 2

244,092,169

(2,028,125

)

1,696,911

(302,412

)

152,369,081

–

5,902

(5,059,431

)

Level 3

–

7,810,326

–

Total

244,092,169

(2,028,125

)

2,090,607

(603,735

)

160,179,407

–

5,902

(5,059,431

)

U.S. Mortgages

Investments in

Securities

Derivatives-

Level

Long-Assets

Short-Liabilities

Assets

Liabilities

Level 1

–

108,738

(187,706

)

Level 2

928,822,883

(50,145,022

)

2,150,320

(1,118,162

)

Level 3

–

Total

928,822,883

(50,145,022

)

2,150,320

(1,197,130

)

The following is a reconciliation of Level 3 investments for the six months ended September 30, 2008.


	Emerging Markets						Local Emerging
	Debt			High Yield			Markets Debt
	Investments in			Investments in			Investments in
	Securities			Securities			Securities
Level 3	Long-Assets			Long-Assets			Long-Assets

Beginning Balance as of March 31, 2008	$	281,300		$	22,451,904		$	2,192,165
Realized gain (loss)		–			–			–
Change in unrealized gain (loss)		(115,556	)		(4,436,126	)		(692,542	)
Net purchase (sales)		–			(2,700,077	)		6,310,703
Net transfers in and/or out of Level 3		1,556,259			(9,288,969	)		–


Ending Balance as of September 30, 2008	$	1,722,003		$	6,026,732		$	7,810,326

GOLDMAN SACHS SINGLE SECTOR 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 Maturities
	Purchases of		Purchases		Maturities of		(Excluding
	U.S. Government		(Excluding		U.S. Government		U.S. Government
	and Agency		U.S. Government and		and Agency		and Agency
Fund	Obligations		Agency Obligations)		Obligations		Obligations)

Emerging Markets Debt	$	8,863,226	$	150,304,571	$	6,005,150	$	156,392,305


High Yield		—		596,954,056		—		243,418,090


Investment Grade Credit		31,859,949		72,080,586		10,001,877		69,501,344


Local Emerging Markets Debt		—		131,249,475		—		32,437,395


U.S. Mortgages		1,456,502,459		21,075,882		1,196,272,602		4,349,829

For the six months ended September 30, 2008, Emerging Markets Debt, Investment Grade Credit and U.S. Mortgages paid commissions of approximately $1,000, $13,900 and $33,500, respectively in connection with futures contracts entered into with Goldman Sachs as the Futures Commission Merchant.

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, except for Local Emerging Markets Debt, participated 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 SINGLE SECTOR FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2008 (Unaudited)

8. TAX INFORMATION

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


	Emerging						Investment Grade			Local Emerging
	Markets Debt			High Yield			Credit			Markets Debt		U.S. Mortgages

Capital loss carryforward:⁽¹⁾
Expiring 2009	$	—		$	(11,007,057	)	$	—		$	—	$	—
Expiring 2010		—			(3,471,539	)		—			—		—
Expiring 2011		—			(1,172,508	)		—			—		—
Expiring 2012		—			—			—			—		—
Expiring 2013					—			—			—		—
Expiring 2014					(8,291,304	)		(2,649,569	)		—		—
Expiring 2015		—			—			—			—		—
Expiring 2016		—			(49,236,893	)		(487,181	)		—		—


Total capital loss carryforward	$	—		$	(73,179,301	)	$	(3,136,750	)	$	—	$	—


Timing differences (income distribution payables, straddles and swap income receivables)	$	(533,872	)	$	(4,816,962	)	$	(568,985	)	$	1,485	$	(817,792	)


⁽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:


	Emerging						Investment Grade			Local Emerging
	Markets Debt			High Yield			Credit			Markets Debt			U.S. Mortgages

Tax Cost	$	218,940,235		$	4,280,165,500		$	276,584,727		$	173,779,163		$	992,606,263


Gross unrealized gain		611,491			12,251,792			221,251			11,032			4,531,909
Gross unrealized loss		(22,354,340	)		(782,922,768	)		(32,713,809	)		(13,610,788	)		(68,315,289	)


Net unrealized security loss	$	(21,742,849	)	$	(770,670,976	)	$	(32,492,558	)	$	(13,599,756	)	$	(63,783,380	)

The difference between book-basis and tax-basis unrealized gains (losses) is attributable to net mark-to market gains (losses) on regulated futures and foreign currency contracts and wash sales 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

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS


9. OTHER RISKS (continued)

securities. The following Portfolios were beneficial owners of certain Funds with amounts of 5% or greater as of September 30, 2008 (as a percentage of outstanding shares):


							Goldman Sachs
	Goldman Sachs			Goldman Sachs			Growth and Income
	Balanced			Growth Strategy			Strategy
Fund	Strategy Portfolio			Portfolio			Portfolio

Emerging Markets Debt		6	%		18	%		22	%


Local Emerging Markets Debt		7			24			29

As of September 30, 2008, Goldman Sachs Group, Inc. was the beneficial owner of approximately 32% of Shares outstanding of Class C Shares of the Local Emerging Markets Debt Fund and 100% of Shares outstanding of Class IR and Class R Shares of the High Yield Fund.

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 Risks — 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.

Investing in foreign markets may involve special risks and considerations not typically associated with investing in the U.S. These risks include revaluation of currencies, high rates of inflation, repatriation restrictions on income and capital, and adverse political and economic developments. Moreover, securities issued in these markets may be less liquid, subject to government ownership controls, have delayed settlements and their prices may be more volatile than those of comparable securities in the U.S.

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 High Yield Bond Fund by the High Yield Fund. The reorganization was completed on June 25, 2007, as of the close of business on June 22, 2007.

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2008 (Unaudited)


10. OTHER MATTERS (continued)

Pursuant to the Reorganization Agreement, the assets and liabilities of the AXA Enterprise High Yield Bond Fund’s (“Acquired Fund”) Class A, Class B, Class C and Class Y were transferred into the High Yield 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

High Yield Class A/
AXA Enterprise High Yield Bond Class A		8,370,809	$	68,222,384		7,030,741


High Yield Class B/
AXA Enterprise High Yield Bond Class B		4,327,921		35,359,057		3,647,903


High Yield Class C/
AXA Enterprise High Yield Bond Class C		2,322,931		18,955,171		1,956,052


High Yield Institutional Class/
AXA Enterprise High Yield Bond Class Y		1,116,820		9,113,231		938,668

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 appreciation and capital loss carryforwards. Utilization of the Acquired Fund’s capital loss carryforward may be 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

Appreciation

Carryforward

High Yield/AXA Enterprise High Yield Bond

3,315,990,233

131,649,843

3,447,640,076

1,226,239

(16,622,835

)

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 SINGLE SECTOR FIXED INCOME FUNDS

11. SUMMARY OF SHARE TRANSACTIONS

Share activity is as follows:


	Emerging Markets Debt 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		2,226,514		$	25,591,615			2,342,051		$	27,667,088			4,353,597		$	52,317,508
Shares issued in connection with merger		—			—			—			—			—			—
Reinvestment of distributions		186,605			2,117,004			248,217			2,928,894			369,563			4,425,421
Shares redeemed		(3,656,773	)		(41,480,108	)		(1,996,878	)		(23,559,570	)		(3,548,141	)		(42,424,740	)


		(1,243,654	)		(13,771,489	)		593,390			7,036,412			1,175,019			14,318,189


Class C Shares
Shares sold		77,467			889,885			91,162			1,074,508			82,909			985,311
Shares issued in connection with merger		—			—			—			—			—			—
Reinvestment of distributions		3,656			41,205			3,007			35,366			807			9,614
Shares redeemed		(54,173	)		(622,129	)		(13,203	)		(155,072	)		(1,885	)		(22,264	)


		26,950			308,961			80,966			954,802			81,831			972,661


Institutional Shares
Shares sold		3,842,735			44,126,722			2,108,545			25,017,544			9,558,691			114,673,029
Shares issued in connection with merger		—			—			—			—			—			—
Reinvestment of distributions		396,189			4,487,979			635,605			7,510,547			740,538			8,868,292
Shares redeemed		(3,875,840	)		(43,547,490	)		(5,742,828	)		(67,450,420	)		(1,924,964	)		(22,990,871	)


		363,084			5,067,211			(2,998,678	)		(34,922,329	)		8,374,265			100,550,450


NET INCREASE (DECREASE)		(853,620	)	$	(8,395,317	)		(2,324,322	)	$	(26,931,115	)		9,631,115		$	115,841,300


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

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2008 (Unaudited)

Share activity is as follows:


							High Yield 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		81,424,744		$	568,886,659			35,716,778		$	264,555,735			96,811,653		$	784,743,576
Shares issued in connection with merger		—			—			—			—			8,370,809			68,222,384
Reinvestment of distributions		8,572,864			60,112,454			7,078,436			52,380,371			12,888,183			103,737,100
Shares converted from Class B^(a)		267,862			1,919,400			291,849			2,166,360			393,525			3,149,357
Shares redeemed		(47,533,196	)		(336,550,242	)		(35,578,487	)		(263,914,880	)		(67,997,624	)		(547,222,326	)


		42,732,274			294,368,271			7,508,576			55,187,586			50,466,546			412,630,091


Class B Shares
Shares sold		400,766			2,887,773			330,804			2,464,142			1,658,242			13,495,012
Shares issued in connection with merger		—			—			—			—			4,327,921			35,359,057
Reinvestment of distributions		348,575			2,452,661			341,133			2,529,064			653,818			5,261,142
Shares converted to Class A^(a)		(267,713	)		(1,919,400	)		(291,455	)		(2,166,360	)		(392,852	)		(3,149,357	)
Shares redeemed		(1,800,357	)		(12,723,895	)		(1,936,011	)		(14,330,803	)		(3,681,580	)		(29,577,301	)


		(1,318,729	)		(9,302,861	)		(1,555,529	)		(11,503,957	)		2,565,549			21,388,553


Class C Shares
Shares sold		1,453,396			10,446,356			1,169,706			8,724,064			5,101,822			41,491,709
Shares issued in connection with merger		—			—			—			—			2,322,931			18,955,171
Reinvestment of distributions		331,718			2,330,806			307,774			2,279,416			594,235			4,781,271
Shares redeemed		(2,258,185	)		(16,034,624	)		(2,295,475	)		(17,058,476	)		(4,268,770	)		(34,240,044	)


		(473,071	)		(3,257,462	)		(817,995	)		(6,054,996	)		3,750,218			30,988,107


Institutional Shares
Shares sold		90,573,218			626,307,490			51,355,920			385,356,277			111,403,467			900,996,513
Shares issued in connection with merger		—			—			—			—			1,116,820			9,113,231
Reinvestment of distributions		7,129,155			50,099,202			6,073,478			44,983,452			10,066,461			81,175,867
Shares redeemed		(43,728,877	)		(310,451,503	)		(36,406,155	)		(267,340,275	)		(76,426,912	)		(619,115,202	)


		53,973,496			365,955,189			21,023,243			162,999,454			46,159,836			372,170,409


Service Shares
Shares sold		654,415			4,710,323			492,583			3,604,127			777,362			6,265,241
Reinvestment of distributions		56,368			393,852			34,195			252,104			35,411			283,776
Shares redeemed		(159,869	)		(1,124,823	)		(101,159	)		(737,200	)		(123,655	)		(998,930	)


		550,914			3,979,352			425,619			3,119,031			689,118			5,550,087


Class IR Shares^(b)
Shares sold		—			—			1,302			10,000			—			—
Reinvestment of distributions		58			402			39			289			—			—


		58			402			1,341			10,289			—			—


Class R Shares^(b)
Shares sold		6			44			1,302			10,000			—			—
Reinvestment of distributions		54			377			37			273			—			—


		60			421			1,339			10,273			—			—


NET INCREASE (DECREASE)		95,465,002		$	651,743,312			26,586,594		$	203,767,680			103,631,267		$	842,727,247


*		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)		Class IR and R Shares of the High Yield Fund commenced operations on November 30, 2007.

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

11. SUMMARY OF SHARE TRANSACTIONS (continued)

Share activity is as follows:


	Investment Grade Credit 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		568,660		$	5,260,209			125,628		$	1,242,804			603,406		$	5,994,828
Reinvestment of distributions		28,809			265,944			16,689			164,540			29,335			290,799
Shares redeemed		(152,287	)		(1,415,045	)		(31,251	)		(306,945	)		(106,258	)		(1,054,310	)


		445,182			4,111,108			111,066			1,100,399			526,483			5,231,317


Institutional Shares
Shares sold		378,085			3,558,363			118,021			1,151,363			838,243			8,320,685
Reinvestment of distributions		24,098			223,175			17,433			172,373			23,646			234,541
Shares redeemed		(200,583	)		(1,895,855	)		(145,867	)		(1,434,882	)		(96,478	)		(953,900	)


		201,600			1,885,683			(10,413	)		(111,146	)		765,411			7,601,326


Separate Account Institutional Shares
Shares sold		4,773,555			44,908,500			3,547,009			35,150,925			6,860,944			68,122,336
Reinvestment of distributions		594,366			5,518,897			435,843			4,305,472			921,386			9,148,848
Shares redeemed		(3,897,744	)		(36,540,765	)		(4,685,260	)		(46,282,467	)		(4,322,899	)		(42,939,930	)


		1,470,177			13,886,632			(702,408	)		(6,826,070	)		3,459,431			34,331,254


NET INCREASE (DECREASE)		2,116,959		$	19,883,423			(601,755	)	$	(5,836,817	)		4,751,325		$	47,163,897


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

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2008 (Unaudited)

Share activity is as follows:


	Local Emerging Markets Debt Fund

	For the Six Months Ended						For the Period from
	September 30, 2008						February 15, 2008 to
	(Unaudited)						March 31, 2008^(a)

	Shares			Dollars			Shares			Dollars

Class A Shares
Shares sold		5,533,543		$	54,290,225			149,915		$	1,510,010
Reinvestment of distributions		62,469			598,434			491			4,841
Shares redeemed		(2,755,068	)		(25,913,949	)		(1	)		(10	)


		2,840,944			28,974,710			150,405			1,514,841


Class C Shares
Shares sold		2,155			21,000			12,847			128,003
Reinvestment of distributions		293			2,875			20			193
Shares redeemed		(12,114	)		(113,734	)		(1	)		(10	)


		(9,666	)		(89,859	)		12,866			128,186


Institutional Shares
Shares sold		9,758,692			95,443,802			6,118,709			61,017,236
Reinvestment of distributions		353,163			3,394,129			29,451			291,384
Shares redeemed		(1,818,594	)		(17,081,186	)		(13,562	)		(134,359	)


		8,293,261			81,756,745			6,134,598			61,174,261


NET INCREASE		11,124,539		$	110,641,596			6,297,869		$	62,817,288


*		The Fund changed its fiscal year end from October 31 to March 31.
(a)		The Local Emerging Markets Debt Fund commenced operations on February 15, 2008.

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

11. SUMMARY OF SHARE TRANSACTIONS (continued)

Share activity is as follows:


	U.S. Mortgages 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		214,054		$	2,071,210			24,691		$	247,785			91,219		$	901,860
Reinvestment of distributions		21,218			200,325			14,110			139,832			30,971			305,402
Shares redeemed		(137,425	)		(1,280,370	)		(19,564	)		(194,290	)		(115,990	)		(1,148,045	)


		97,847			991,165			19,237			193,327			6,200			59,217


Institutional Shares
Shares sold		15,689,676			151,489,068			1,647,569			16,334,283			4,044,591			39,935,762
Reinvestment of distributions		600,279			5,660,375			279,639			2,776,186			610,156			6,026,409
Shares redeemed		(669,585	)		(6,358,953	)		(375,783	)		(3,747,559	)		(1,019,855	)		(9,997,982	)


		15,620,370			150,790,490			1,551,425			15,362,910			3,634,892			35,964,189


Separate Account Institutional Shares
Shares sold		10,412,724			98,940,950			8,036,696			80,307,030			34,189,108			338,472,543
Reinvestment of distributions		1,108,776			10,482,813			909,719			9,035,164			1,223,142			12,083,102
Shares redeemed		(8,518,304	)		(80,699,835	)		(9,982,268	)		(99,280,994	)		(12,826,049	)		(126,898,514	)


		3,003,196			28,723,928			(1,035,853	)		(9,938,800	)		22,586,201			223,657,131


NET INCREASE		18,721,413		$	180,505,583			534,809		$	5,617,437			26,227,293		$	259,680,537


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

GOLDMAN SACHS EMERGING MARKETS DEBT FUND

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period


				Income (loss) from								Distributions
				investment operations								to shareholders
		Net asset
		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	$	11.63	$	0.34	$	(1.20	)	$	(0.86	)	$	(0.32	)	$	—		$	(0.32	)
	2008 - C		11.60		0.30		(1.20	)		(0.90	)		(0.28	)		—			(0.28	)
	2008 - Institutional		11.63		0.36		(1.20	)		(0.84	)		(0.34	)		—			(0.34	)


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


	2008 - A		12.16		0.30		(0.37	)		(0.07	)		(0.31	)		(0.15	)		(0.46	)
	2008 - C		12.14		0.25		(0.36	)		(0.11	)		(0.28	)		(0.15	)		(0.43	)
	2008 - Institutional		12.17		0.32		(0.38	)		(0.06	)		(0.33	)		(0.15	)		(0.48	)


FOR THE YEARS ENDED OCTOBER 31,


	2007 - A		11.98		0.63		0.38			1.01			(0.62	)		(0.21	)		(0.83	)
	2007 - C		11.97		0.53		0.38			0.91			(0.53	)		(0.21	)		(0.74	)
	2007 - Institutional		11.99		0.67		0.39			1.06			(0.67	)		(0.21	)		(0.88	)




	2006 - A		11.75		0.60		0.69			1.29			(0.65	)		(0.41	)		(1.06	)
	2006 - C (commenced September 26, 2006)		11.78		0.01		0.22			0.23			(0.04	)		—			(0.04	)
	2006 - Institutional		11.76		0.64		0.69			1.33			(0.69	)		(0.41	)		(1.10	)




	2005 - A		11.18		0.74		1.00			1.74			(0.64	)		(0.53	)		(1.17	)
	2005 - Institutional		11.19		0.77		1.02			1.79			(0.69	)		(0.53	)		(1.22	)




	2004 - A		10.22		0.59		0.97			1.56			(0.57	)		(0.03	)		(0.60	)
	2004 - Institutional		10.23		0.62		0.98			1.60			(0.61	)		(0.03	)		(0.64	)




	2003 - A (commenced August 29, 2003)		10.00		0.08		0.26			0.34			(0.12	)		—			(0.12	)
	2003 - Institutional (commenced August 29, 2003)		10.00		0.11		0.24			0.35			(0.12	)		—			(0.12	)


*	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 return 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 EMERGING MARKETS DEBT 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






$	10.45		(7.55	)%	$	65,904		1.22	%^(c)		5.96	%^(c)		1.38	%^(c)		5.80	%^(c)		72	%
	10.42		(7.92	)		1,978		1.97	^(c)		5.20	^(c)		2.13	^(c)		5.04	^(c)		72
	10.45		(7.47	)		134,135		0.88	^(c)		6.33	^(c)		1.04	^(c)		6.17	^(c)		72





	11.63		(0.51	)		87,818		1.21	^(c)		6.03	^(c)		1.36	^(c)		5.88	^(c)		41
	11.60		(0.82	)		1,890		1.96	^(c)		5.20	^(c)		2.11	^(c)		5.05	^(c)		41
	11.63		(0.37	)		145,067		0.87	^(c)		6.51	^(c)		1.02	^(c)		6.36	^(c)		41





	12.16		8.86			84,661		1.23			5.23			1.38			5.08			81
	12.14		7.80			995		1.98			4.64			2.13			4.49			81
	12.17		9.25			188,311		0.87			5.68			1.02			5.53			81




	11.98		11.63			69,302		1.23			5.17			1.53			4.87			167
	11.97		1.98			1		1.71	^(c)		1.36	^(c)		1.75	^(c)		1.32	^(c)		167
	11.99		11.93			85,073		0.86			5.51			1.16			5.21			167




	11.75		16.48			34,327		1.26			6.13			1.82			5.57			207
	11.76		17.01			40,962		0.88			6.58			1.52			5.94			207




	11.18		15.78			5,411		1.28			5.43			3.09			3.62			273
	11.19		16.22			20,387		0.88			5.90			2.57			4.21			273




	10.22		3.36			1,088		1.28	^(c)		5.35	^(c)		5.53	^(c)		1.10	^(c)		49
	10.23		3.52			11,688		0.88	^(c)		5.96	^(c)		4.88	^(c)		1.96	^(c)		49

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

GOLDMAN SACHS HIGH YIELD 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
		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	$	7.12	$	0.29	$	(0.73	)	$	(0.44	)	$	(0.29	)
	2008 - B		7.13		0.27		(0.74	)		(0.47	)		(0.26	)
	2008 - C		7.12		0.27		(0.74	)		(0.47	)		(0.26	)
	2008 - Institutional		7.13		0.31		(0.74	)		(0.43	)		(0.30	)
	2008 - Service		7.12		0.29		(0.74	)		(0.45	)		(0.28	)
	2008 - IR		7.12		0.30		(0.74	)		(0.44	)		(0.29	)
	2008 - R		7.12		0.28		(0.73	)		(0.45	)		(0.28	)


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


	2008 - A		7.93		0.24		(0.78	)		(0.54	)		(0.27	)
	2008 - B		7.94		0.22		(0.79	)		(0.57	)		(0.24	)
	2008 - C		7.93		0.22		(0.79	)		(0.57	)		(0.24	)
	2008 - Institutional		7.94		0.25		(0.78	)		(0.53	)		(0.28	)
	2008 - Service		7.92		0.24		(0.78	)		(0.54	)		(0.26	)
	2008 - IR (commenced November 30, 2007)		7.68		0.20		(0.54	)		(0.34	)		(0.22	)
	2008 - R (commenced November 30, 2007)		7.68		0.19		(0.54	)		(0.35	)		(0.21	)


FOR THE YEARS ENDED OCTOBER 31,


	2007 - A		8.04		0.60		(0.10	)		0.50			(0.61	)
	2007 - B		8.05		0.54		(0.10	)		0.44			(0.55	)
	2007 - C		8.04		0.54		(0.10	)		0.44			(0.55	)
	2007 - Institutional		8.05		0.63		(0.10	)		0.53			(0.64	)
	2007 - Service		8.03		0.59		(0.10	)		0.49			(0.60	)




	2006 - A		7.81		0.58		0.23			0.81			(0.58	)
	2006 - B		7.82		0.53		0.22			0.75			(0.52	)
	2006 - C		7.81		0.53		0.22			0.75			(0.52	)
	2006 - Institutional		7.82		0.61		0.23			0.84			(0.61	)
	2006 - Service		7.80		0.57		0.23			0.80			(0.57	)




	2005 - A		8.08		0.62		(0.22	)		0.40			(0.67	)
	2005 - B		8.09		0.56		(0.22	)		0.34			(0.61	)
	2005 - C		8.08		0.56		(0.22	)		0.34			(0.61	)
	2005 - Institutional		8.09		0.65		(0.21	)		0.44			(0.71	)
	2005 - Service		8.09		0.62		(0.24	)		0.38			(0.67	)




	2004 - A		7.79		0.65		0.32			0.97			(0.68	)
	2004 - B		7.80		0.60		0.31			0.91			(0.62	)
	2004 - C		7.79		0.60		0.31			0.91			(0.62	)
	2004 - Institutional		7.81		0.69		0.30			0.99			(0.71	)
	2004 - Service		7.80		0.65		0.31			0.96			(0.67	)




	2003 - A		6.38		0.65		1.40			2.05			(0.64	)
	2003 - B		6.39		0.60		1.39			1.99			(0.58	)
	2003 - C		6.38		0.59		1.40			1.99			(0.58	)
	2003 - Institutional		6.39		0.68		1.41			2.09			(0.67	)
	2003 - Service		6.39		0.64		1.40			2.04			(0.63	)


*	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 return 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 HIGH YIELD 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




$	6.39		(6.52	)%	$	1,754,283		1.07	%^(c)		8.17	%^(c)		1.07	%^(c)		8.17	%^(c)		7	%
	6.40		(6.88	)		74,993		1.82	^(c)		7.42	^(c)		1.82	^(c)		7.42	^(c)		7
	6.39		(6.88	)		87,750		1.82	^(c)		7.43	^(c)		1.82	^(c)		7.43	^(c)		7
	6.40		(6.50	)		1,807,389		0.73	^(c)		8.53	^(c)		0.73	^(c)		8.53	^(c)		7
	6.39		(6.61	)		13,007		1.23	^(c)		8.07	^(c)		1.23	^(c)		8.07	^(c)		7
	6.39		(6.55	)		9		0.82	^(c)		8.33	^(c)		0.82	^(c)		8.33	^(c)		7
	6.39		(6.64	)		9		1.32	^(c)		7.83	^(c)		1.32	^(c)		7.83	^(c)		7





	7.12		(6.82	)		1,650,027		1.07	^(c)		7.87	^(c)		1.09	^(c)		7.85	^(c)		11
	7.13		(7.23	)		92,953		1.82	^(c)		7.12	^(c)		1.84	^(c)		7.10	^(c)		11
	7.12		(7.11	)		101,138		1.82	^(c)		7.12	^(c)		1.84	^(c)		7.10	^(c)		11
	7.13		(6.68	)		1,628,668		0.73	^(c)		8.22	^(c)		0.75	^(c)		8.20	^(c)		11
	7.12		(6.89	)		10,573		1.23	^(c)		7.72	^(c)		1.25	^(c)		7.70	^(c)		11
	7.12		(4.35	)		10		0.82	^(c)		8.20	^(c)		0.84	^(c)		8.18	^(c)		11
	7.12		(4.51	)		9		1.32	^(c)		7.73	^(c)		1.34	^(c)		7.71	^(c)		11





	7.93		6.41			1,777,150		1.09			7.46			1.11			7.44			50
	7.94		5.61			115,817		1.84			6.72			1.86			6.70			50
	7.93		5.61			119,073		1.84			6.71			1.86			6.69			50
	7.94		6.79			1,646,138		0.73			7.82			0.75			7.80			50
	7.92		6.28			8,399		1.24			7.34			1.26			7.32			50




	8.04		10.76			1,395,265		1.12			7.38			1.14			7.36			41
	8.05		9.93			96,743		1.87			6.64			1.89			6.62			41
	8.04		9.94			90,528		1.87			6.64			1.89			6.62			41
	8.05		11.16			1,296,429		0.75			7.76			0.77			7.74			41
	8.03		10.63			2,980		1.25			7.26			1.27			7.24			41




	7.81		5.10			1,006,734		1.15			7.74			1.17			7.72			52
	7.82		4.31			104,637		1.90			6.98			1.92			6.96			52
	7.81		4.32			72,590		1.90			6.95			1.92			6.93			52
	7.82		5.50			825,508		0.76			8.11			0.79			8.08			52
	7.80		4.72			1,597		1.26			7.62			1.29			7.59			52




	8.08		12.94			1,109,364		1.16			8.31			1.18			8.29			47
	8.09		12.09			105,106		1.91			7.54			1.93			7.52			47
	8.08		12.10			56,174		1.91			7.53			1.93			7.51			47
	8.09		13.23			832,175		0.76			8.73			0.78			8.71			47
	8.09		12.81			1,160		1.26			8.18			1.28			8.16			47




	7.79		33.34			1,821,032		1.17			8.97			1.19			8.95			54
	7.80		32.31			97,894		1.92			8.25			1.94			8.23			54
	7.79		32.36			46,812		1.92			8.21			1.94			8.19			54
	7.81		33.98			1,119,417		0.77			9.42			0.79			9.40			54
	7.80		33.16			958		1.27			8.86			1.29			8.84			54

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

GOLDMAN SACHS INVESTMENT GRADE CREDIT FUND

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period


				Income (loss) from								Distributions
				investment operations								to shareholders
		Net asset
		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		$9.64	$	0.26	$	(1.06	)	$	(0.80	)	$	(0.27	)	$	—		$	(0.27	)
	2008 - Institutional		9.66		0.29		(1.08	)		(0.79	)		(0.29	)		—			(0.29	)
	2008 - Separate Account Institutional		9.65		0.29		(1.07	)		(0.78	)		(0.29	)		—			(0.29	)


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


	2008 - A		9.90		0.22		(0.27	)		(0.05	)		(0.21	)		—			(0.21	)
	2008 - Institutional		9.92		0.23		(0.27	)		(0.04	)		(0.22	)		—			(0.22	)
	2008 - Separate Account Institutional		9.91		0.23		(0.26	)		(0.03	)		(0.23	)		—			(0.23	)


FOR THE YEARS ENDED OCTOBER 31,


	2007 - A		9.95		0.51		(0.08	)		0.43			(0.48	)		—			(0.48	)
	2007 - Institutional		9.97		0.55		(0.08	)		0.47			(0.52	)		—			(0.52	)
	2007 - Separate Account Institutional		9.96		0.56		(0.08	)		0.48			(0.53	)		—			(0.53	)




	2006 - A		9.93		0.47		—			0.47			(0.45	)		—			(0.45	)
	2006 - Institutional		9.95		0.51		—			0.51			(0.49	)		—			(0.49	)
	2006 - Separate Account Institutional		9.94		0.52		(0.01	)		0.51			(0.49	)		—			(0.49	)




	2005 - A		10.31		0.40		(0.35	)		0.05			(0.39	)		(0.04	)		(0.43	)
	2005 - Institutional		10.32		0.52		(0.42	)		0.10			(0.43	)		(0.04	)		(0.47	)
	2005 - Separate Account Institutional		10.31		0.46		(0.35	)		0.11			(0.44	)		(0.04	)		(0.48	)


FOR THE PERIOD ENDED OCTOBER 31,


	2004 - A (commenced November 3, 2003)		10.00		0.38		0.31			0.69			(0.38	)		—			(0.38	)
	2004 - Institutional (commenced November 3, 2003)		10.00		0.44		0.30			0.74			(0.42	)		—			(0.42	)
	2004 - Separate Account Institutional (commenced November 3, 2003)		10.00		0.43		0.31			0.74			(0.43	)		—			(0.43	)


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


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

(b)


(c)	Annualized.

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

GOLDMAN SACHS INVESTMENT GRADE CREDIT 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






$	8.57		(8.47	)%	$	12,221		0.76	%^(c)		5.63	%^(c)		0.96	%^(c)		5.43	%^(c)		34	%
	8.58		(8.39	)		11,068		0.40	^(c)		6.07	^(c)		0.62	^(c)		5.85	^(c)		34
	8.58		(8.27	)		213,719		0.35	^(c)		6.15	^(c)		0.57	^(c)		5.93	^(c)		34





	9.64		(0.54	)		9,455		0.76	^(c)		5.31	^(c)		0.95	^(c)		5.12	^(c)		15
	9.66		(0.39	)		10,504		0.40	^(c)		5.67	^(c)		0.61	^(c)		5.46	^(c)		15
	9.65		(0.37	)		226,207		0.35	^(c)		5.72	^(c)		0.56	^(c)		5.51	^(c)		15





	9.90		4.44			8,615		0.79			5.17			0.97			4.99			74
	9.92		4.83			10,893		0.40			5.59			0.60			5.39			74
	9.91		4.89			239,358		0.35			5.61			0.55			5.41			74




	9.95		4.84			3,420		0.79			4.82			1.04			4.57			74
	9.97		5.35			3,317		0.40			5.21			0.65			4.96			74
	9.96		5.30			206,122		0.35			5.26			0.60			5.01			74




	9.93		0.50			3,622		0.81			3.88			1.07			3.62			88
	9.95		0.89			3,638		0.40			4.40			0.66			4.14			88
	9.94		1.04			192,196		0.35			4.34			0.62			4.07			88





	10.31		7.00			2,179		0.82	^(c)		3.66	^(c)		1.85	^(c)		2.63	^(c)		78
	10.32		7.57			76		0.40	^(c)		4.28	^(c)		1.45	^(c)		3.23	^(c)		78

	10.31		7.52			70,269		0.35	^(c)		4.26	^(c)		1.40	^(c)		3.21	^(c)		78

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

GOLDMAN SACHS LOCAL EMERGING MARKETS DEBT FUND

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period


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

FOR THE SIX MONTHS ENDED SEPTEMBER 30, (UNAUDITED)


	2008 - A		$9.85	$	0.31	$	(1.02	)	$	(0.71	)	$	(0.29	)
	2008 - C		9.85		0.27		(1.00	)		(0.73	)		(0.26	)
	2008 - Institutional		9.85		0.32		(1.01	)		(0.69	)		(0.31	)

FOR THE PERIOD ENDED MARCH 31,


	2008 - A (commenced February 15, 2008)		10.00		0.04		(0.14	)		(0.10	)		(0.05	)
	2008 - C (commenced February 15, 2008)		10.00		0.04		(0.14	)		(0.10	)		(0.05	)
	2008 - Institutional (commenced February 15, 2008)		10.00		0.06		(0.15	)		(0.09	)		(0.06	)


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

(b)


(c)	Annualized.

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

GOLDMAN SACHS LOCAL EMERGING MARKETS DEBT 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




$	8.85		(7.38	)%	$	26,483		1.33	%		6.39	%		1.49	%		6.23	%		37	%
	8.86		(7.73	)		28		2.08			5.37			2.24			5.21			37
	8.85		(7.22	)		127,747		0.99			6.62			1.15			6.46			37




	9.85		(0.93	)		1,482		1.35			4.29			2.98			2.66			3
	9.85		(1.01	)		127		2.10			4.30			3.73			2.67			3
	9.85		(0.89	)		60,432		1.01			5.52			2.64			3.89			3

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

GOLDMAN SACHS U.S. MORTGAGES FUND

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period



				Income (loss) from											Distributions
				investment operations											to shareholders
		Net asset
		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		$9.62	$	0.21	$	(0.33	)	$	(0.12	)	$	(0.22	)	$	—		$	(0.22	)
	2008 - Institutional		9.64		0.23		(0.34	)		(0.11	)		(0.24	)		—			(0.24	)
	2008 - Separate Account Institutional		9.64		0.23		(0.34	)		(0.11	)		(0.24	)		—			(0.24	)


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


	2008 - A		9.91		0.19		(0.29	)		(0.10	)		(0.19	)		—			(0.19	)
	2008 - Institutional		9.93		0.20		(0.28	)		(0.08	)		(0.21	)		—			(0.21	)
	2008 - Separate Account Institutional		9.93		0.21		(0.29	)		(0.08	)		(0.21	)		—			(0.21	)


FOR THE YEARS ENDED OCTOBER 31,


	2007 - A		9.90		0.44		0.04			0.48			(0.47	)		—			(0.47	)
	2007 - Institutional		9.91		0.47		0.05			0.52			(0.50	)		—			(0.50	)
	2007 - Separate Account Institutional		9.91		0.48		0.05			0.53			(0.51	)		—			(0.51	)




	2006 - A		9.82		0.41		0.08			0.49			(0.41	)		—			(0.41	)
	2006 - Institutional		9.82		0.45		0.08			0.53			(0.44	)		—			(0.44	)
	2006 - Separate Account Institutional		9.82		0.45		0.09			0.54			(0.45	)		—			(0.45	)




	2005 - A		10.22		0.28		(0.17	)		0.11			(0.33	)		(0.18	)		(0.51	)
	2005 - Institutional		10.22		0.33		(0.18	)		0.15			(0.37	)		(0.18	)		(0.55	)
	2005 - Separate Account Institutional		10.21		0.36		(0.20	)		0.16			(0.37	)		(0.18	)		(0.55	)




FOR THE PERIOD ENDED OCTOBER 31,


	2004 - A (commenced November 3, 2003)		10.00		0.22		0.33			0.55			(0.33	)		—			(0.33	)
	2004 - Institutional (commenced November 3, 2003)		10.00		0.29		0.31			0.60			(0.38	)		—			(0.38	)
	2004 - Separate Account Institutional (commenced November 3, 2003)		10.00		0.31		0.28			0.59			(0.38	)		—			(0.38	)


*	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 sale or redemption charges. Total return 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)	The portfolio turnover rate excluding the effect of mortgage dollar rolls is 141% for the six months ended September 30, 2008, 295% for the period ended March 31, 2008, 380% for the year ended October 31, 2007 and 1442% for the year ended October 31, 2006. Prior years include the effect of mortgage dollar roll transaction, if any.
(d)	Annualized.

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


									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)






$9.28		(1.43	)%	$	7,678		0.76	%^(d)		4.43	%^(d)		0.91	%^(d)		4.28	%^(d)		147	%
9.29		(1.25	)		303,475		0.40	^(d)		4.80	^(d)		0.57	^(d)		4.63	^(d)		147
9.29		(1.23	)		516,993		0.35	^(d)		4.84	^(d)		0.52	^(d)		4.67	^(d)		147





9.62		(0.80	)		7,021		0.76	^(d)		4.58	^(d)		0.91	^(d)		4.43	^(d)		483
9.64		(0.75	)		164,236		0.40	^(d)		4.94	^(d)		0.57	^(d)		4.77	^(d)		483
9.64		(0.73	)		507,194		0.35	^(d)		4.98	^(d)		0.52	^(d)		4.81	^(d)		483





9.91		4.96			7,044		0.78			4.43			0.94			4.27			610
9.93		5.43			153,795		0.40			4.81			0.58			4.63			610
9.93		5.48			532,819		0.35			4.84			0.53			4.66			610




9.90		5.21			6,973		0.79			4.24			0.98			4.05			1,665
9.91		5.56			117,497		0.40			4.64			0.61			4.43			1,665
9.91		5.73			307,935		0.35			4.62			0.56			4.41			1,665




9.82		1.00			7,916		0.81			2.88			0.98			2.71			2,006
9.82		1.49			74,616		0.40			3.43			0.58			3.24			2,006
9.82		1.54			387,306		0.35			3.42			0.53			3.24			2,006





10.22		5.60			628		0.82	^(d)		1.95	^(d)		1.08	^(d)		1.69	^(d)		1,953
10.22		6.07			120,628		0.40	^(d)		2.86	^(d)		0.68	^(d)		2.58	^(d)		1,953

10.21		6.03			101,429		0.35	^(d)		2.98	^(d)		0.63	^(d)		2.70	^(d)		1,953

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

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

As a shareholder of Class A, Class B, Class C, Institutional, Service, Separate Account Institutional, 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, Service, Separate Account Institutional, 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.

Emerging Markets Debt Fund

High Yield Fund

Investment Grade Credit Fund

Local Emerging Markets Debt Fund

U.S. Mortgages Fund

Expenses Paid

Beginning

Ending

for the

Beginning

Ending

for the

Beginning

Ending

for the

Beginning

Ending

for the

Beginning

Ending

for the

Account

6 months

Account

6 months

Account

6 months

Account

6 months

Account

6 months

Value

ended

Value

ended

Value

ended

Value

ended

Value

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

924.50

5.86

1,000

934.80

5.17

1,000

915.30

3.65

1,000

926.20

6.38

1,000

985.70

3.78

Hypothetical 5% return

1,000

1,018.97

6.15

1,000

1,019.72

5.40

1,000

1,021.25

3.86

1,000

1,018.44

6.69

1,000

1,021.26

3.85

Class B

Actual

N/A

1,000

931.20

8.80

N/A

Hypothetical 5% return

N/A

1,000

1,015.96

9.19

N/A

Class C

Actual

1,000

920.80

9.46

1,000

931.20

8.80

N/A

1,000

922.70

9.87

N/A

Hypothetical 5% return

1,000

1,015.22

9.92

1,000

1,015.96

9.19

N/A

1,000

1,014.80

10.35

N/A

Institutional

Actual

1,000

925.30

4.24

1,000

935.00

3.53

1,000

916.10

1.94

1,000

927.80

4.66

1,000

987.50

2.00

Hypothetical 5% return

1,000

1,020.67

4.45

1,000

1,021.42

3.68

1,000

1,023.05

2.05

1,000

1,020.23

4.88

1,000

1,023.06

2.03

Service

Actual

N/A

1,000

933.90

5.96

N/A

Hypothetical 5% return

N/A

1,000

1,018.91

6.22

N/A

Separate Account Institutional

Actual

N/A

1,000

917.30

1.69

N/A

987.70

1.75

Hypothetical 5% return

N/A

1,000

1,023.30

1.79

N/A

1,023.31

1.78

Class IR

Actual

N/A

1,000

934.50

4.02

N/A

Hypothetical 5% return

N/A

1,000

1,025.07

4.21

N/A

Class R

Actual

N/A

1,000

933.60

6.27

N/A

Hypothetical 5% return

N/A

1,000

1,018.58

6.54

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			Service			Separate Account Institutional			Class IR			Class R

Emerging Markets Debt		1.22	%		N/A			1.97	%		0.88	%		N/A			N/A			N/A			N/A
High Yield		1.07			1.82	%		1.82			0.73			1.23	%		N/A			0.82	%		1.32	%
Investment Grade Credit		0.76			N/A			N/A			0.40			N/A			0.35	%		N/A			N/A
Local Emerging Markets Debt		1.33			N/A			2.08			0.99			N/A			N/A			N/A			N/A
U.S. Mortgages		0.76			N/A			N/A			0.40			N/A			0.35			N/A			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.

100

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

Statement Regarding Basis for Approval of Management Agreement (Unaudited)

Background

The Goldman Sachs U.S. Mortgages, Goldman Sachs Investment Grade Credit, Goldman Sachs High Yield, Goldman Sachs Emerging Markets Debt and Goldman Sachs Local Emerging Markets Debt Funds (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 agreement (the “Management Agreement”) with Goldman Sachs Asset Management, L.P. (the “Investment Adviser”) with respect to the Funds.

The Management Agreement was most recently approved for continuation until June 30, 2009 by the Board of Trustees, including those Trustees who are not parties to the Management Agreement or “interested persons” (as defined in the Investment Company Act of 1940, as amended) of any party thereto (the “Independent Trustees”), at a meeting held on June 18, 2008 (the “Annual Contract Meeting”).

To assist the Trustees in their deliberations at the Annual Contract Meeting, and in addition to the reviews of the 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 Agreement 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 Agreement; (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 (with the exception of the Local Emerging Markets Debt Fund, which commenced operations in 2008); (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 relating 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.

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 Agreement and agreements with other service providers entered into by the Trust on behalf of the Funds; (h) the administrative services provided under the Management Agreement, 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 (with the exception of the Local Emerging Markets Debt 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 Agreement.

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

101

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

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

service fees by the Funds and the payment of non-Rule 12b-1 shareholder service and administration fees by the High Yield Fund’s 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 Agreement as it applied to each Fund.

In evaluating the Management Agreement at the Annual Contract Meeting, the Trustees relied upon their knowledge, resulting from their meetings and other interactions throughout the year, of the Investment Adviser, its affiliates, their services and the Funds. At those meetings the Trustees received materials relating to the Investment Adviser’s investment management and other services provided under the Management Agreement, including: (a) information on the investment performance of the 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 Agreement

As part of their review, the Trustees considered the nature, extent and quality of the services provided by the Investment Adviser. In this regard, the Trustees considered both the investment advisory services, and the other, non-advisory services, that are provided to the 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 Local Emerging Markets Debt Fund, which commenced operations in 2008) 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 considered whether each Fund had operated within its investment policies, and had complied with its investment limitations. The Trustees noted that the Local Emerging Markets Debt Fund commenced operations in 2008 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.

Costs of Services Provided and Competitive Information

The Independent Trustees considered the contractual fee rates payable by each Fund under the Management Agreement. In this regard, the Trustees considered information on the services rendered by the Investment Adviser to the Funds, which

102

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

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

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 fees payable by the U.S. Mortgages and Investment Grade Credit Funds. 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 (with the exception of the Local Emerging Markets Debt Fund, which commenced operations in 2008). 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 (with the exception of the Local Emerging Markets Debt Fund) were provided for 2007 and 2006, and the Independent Trustees considered this information in relation to the Investment Adviser’s overall profitability. The Independent Trustees considered the Investment Adviser’s revenues and pre-tax profit margins both in absolute terms and in comparison to information on the reported pre-tax profit margins earned by certain other asset management firms.

Economies of Scale

The Independent Trustees also considered the breakpoints in the fee rate payable under the Management Agreement 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

Emerging Markets Debt		0.80%		0.80%		0.72%		0.68%		0.67%
High Yield		0.70%		0.70%		0.63%		0.60%		0.59%
Investment Grade Credit		0.40%		0.36%		0.34%		0.33%		0.32%
Local Emerging Markets Debt		0.90%		0.90%		0.81%		0.77%		0.75%
U.S. Mortgages		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

103

GOLDMAN SACHS SINGLE SECTOR FIXED INCOME FUNDS

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

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.

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 & Co. (“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 Agreement, the Independent Trustees gave weight to each of the factors described above, but did not identify any particular factor as controlling their decision. After deliberation and consideration of all of the information provided, including the factors described above, the Independent Trustees concluded, in the exercise of their business judgment, that the management fees paid by each 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 Agreement should be approved and continued with respect to each Fund until June 30, 2009.

104

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 uses to determine how to vote proxies relating to portfolio securities and information regarding how the Funds voted proxies relating to portfolio securities for the 12-month period ending June 30, 2008 will be 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 (”SEC”) Web site at http://www.sec.gov.

The Funds files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Form N-Q will be available on the SEC’s website at http://www.sec.gov within 60 days after the Funds’ first and third fiscal quarters. The Funds’ Form N-Q, when available, 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. Forms 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.

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 Fund.


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)