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

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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05349

Goldman Sachs Trust

(Exact name of registrant as specified in charter)

71 South Wacker Drive, Chicago, Illinois 60606

(Address of principal executive offices) (Zip code)


Peter V. Bonanno, Esq.		Copies to:
Goldman, Sachs & Co.		Jack W. Murphy, Esq.
One New York Plaza		Dechert LLP
New York, New York 10004		1775 I Street, NW
		Washington, D.C. 20006

(Name and address of agents for service)

Registrant’s telephone number, including area code: (312) 655-4400

Date of fiscal year end: December 31

Date of reporting period: September 30, 2009


ITEM 1.		REPORTS TO STOCKHOLDERS.

		The Semi-Annual Report to Stockholders is filed herewith.

Goldman Sachs Funds



Semi-Annual Report			September 30, 2009



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

Goldman Sachs Short Duration and Government
Fixed Income Funds


n	ENHANCED INCOME

n	GOVERNMENT INCOME

n	INFLATION PROTECTED SECURITIES

n	SHORT DURATION GOVERNMENT

n	ULTRA-SHORT DURATION GOVERNMENT

TABLE OF CONTENTS


Principal Investment Strategies and Risks		1
Investment Process		3
Market Overview		4
Portfolio Management Discussions and Performance Summaries		7
Schedules of Investments		26
Financial Statements		54
Notes to Financial Statements		62
Financial Highlights		80
Other Information		90


NOT FDIC-INSURED	May Lose Value	No Bank Guarantee

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Principal Investment Strategies and Risks

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

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

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

The Short Duration Government Fund invests primarily in U.S. government securities and in repurchase agreements collateralized by such securities. The Fund’s investments in fixed income securities are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. The Fund is not a money market fund. Investors in this Fund should understand that the net asset value of the Fund will fluctuate, which may result in a loss of the principal amount invested. The Fund’s net asset value and yield are not guaranteed by the U.S. government or by its agencies, instrumentalities or sponsored enterprises. The guarantee on U.S. government securities applies only to the underlying securities of the Fund if held to maturity and not to the value of the Fund’s shares.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

The Fund’s investments in mortgage-backed securities are subject to prepayment risks. These risks may result in greater share price volatility. The Fund may make substantial investments in derivative instruments, including options, financial futures, Eurodollar futures contracts, swaps, options on swaps, structured securities and other derivative investments. Derivative instruments may involve a high degree of financial risk. These risks include the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instrument; the risk of default by a counterparty; and the risk that transactions may not be liquid.

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

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

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




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

MARKET OVERVIEW

Goldman Sachs Short Duration and
Government Fixed Income Funds

Market Review

The combination of improving financial conditions and stability in economic data led to a dramatic increase in demand for riskier fixed income assets during the six months ended September 30, 2009 (the “Reporting Period”). Fears of financial systemic risk were significantly reduced as a result of unprecedented policy mechanisms put in place earlier in the calendar year. After edging higher throughout the spring as the pace of economic decline began to level off, the Purchasing Managers’ Index, which is an indicator of the economic health of the manufacturing sector, as reported by the Institute of Supply Management, rose above 50 for the first time in 18 months in August 2009. Because a reading above 50 indicates growth in the manufacturing sector, this was one of the strongest and most hopeful pieces of evidence that the economy had begun to pull out of recession. Business inventories declined and retail sales were also better than expected. Although some of the uptick was attributed to higher gasoline prices, the government’s “Cash for Clunkers” program also provided a boost to retail sales. Indeed, even excluding auto sales, retail sales rose 1.1% in August 2009, significantly more than the forecasted 0.4% increase, indicating that the renewed strength in private demand was broader than expected. While the marked upturn in discretionary spending indicated the possibility of sustained economic recovery, consumers continued to be burdened by high debt levels and a weak labor market. The pace of decline in nonfarm payrolls slowed, but at the end of September, the unemployment rate stood at 9.8%, the highest rate since June 1983. Although commodity and energy prices rose during the Reporting Period, inflation remained subdued. In a statement following its June meeting, the Federal Open Market Committee (the “Fed”) stated that “substantial resource slack is likely to dampen cost pressures, and the Committee expects that inflation will remain subdued for some time.” This sentiment was repeated by the Fed following its September meeting.

During the first months of the Reporting Period, what is known as the TED spread, which is the difference in yield between 3-month LIBOR* and 3-month U.S. Treasuries and a common measure of financial stress, stood at about 0.50%. This was the lowest reading of the TED spread since the middle of 2007, before the credit crisis hit in earnest. Interest rates rose during most of the second calendar quarter, but reversed course in the final weeks of June as heavy supply was well absorbed. Nevertheless, the 10-year Treasury ended the second calendar quarter 87 basis points (0.87%) higher at a yield of 3.53%. Notably, the U.S. Treasury yield curve, or spectrum of maturities, reached its steepest level ever, meaning the yields on securities with longer-term maturities were significantly higher than the yields on securities with shorter-term maturities. The differential between 2- and 10-year Treasury notes reached 275 basis points (2.75%) in May before ending June at 242 basis points (2.42%). Investors showed a strong appetite for risky assets and all spread, or non-Treasury, sectors handily outperformed U.S. Treasuries.


*	LIBOR, or London Interbank Offered Rates, are floating interest rates that are widely used as reference rates in bank, corporate and government lending agreements.

MARKET OVERVIEW

In the third calendar quarter, interest rates were relatively stable and even declined slightly aided by continued signs of easy monetary policy. In its statement following its September meeting, the Fed stated that it “continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.” The 10-year Treasury ended the period 23 basis points (0.23%) lower at a yield of 3.31%. The 10-year Treasury remained surprisingly strong mainly due to support from international and domestic fund flows. The Treasury yield curve flattened slightly, meaning the difference in yields between shorter-term and longer-term Treasury securities narrowed. Still, the Treasury yield curve remained steep as the differential between the 2- and 10-year Treasury notes was 236 basis points (2.36%) at the end of September. Investors continued to show a strong appetite for risky assets and all non-Treasury sectors added to their year-to-date outperformance versus Treasuries.

Looking Ahead

In our view, the U.S. economy will likely continue to rebound in the months ahead, but the sustainability of the recovery remains an open question. Most of the economic growth during the second half of 2009 is being driven by what may be temporary factors, including government spending, corporate cost-cutting and inventory rebuilding. We expect that these sources of growth will begin to fade in 2010, and consumer spending and/or business investment will need to sustain the recovery. We believe prospects for consumption are still the key, because we see little potential for business investment to be a strong source of growth unless end-demand improves. While retail sales saw an uptick, with help from a temporary boost to auto sales with the “Cash for Clunkers” program and from higher gas prices, we think sustainable growth in consumer spending will depend largely on whether improvements in the job market and housing prices can continue. The pace of job cuts has slowed significantly, but U.S. employment remains very weak and the unemployment rate may well continue to rise. We believe the job market will continue to stabilize in the coming months, with unemployment peaking at slightly more than 10%. Still, the ongoing decline in hourly earnings suggests the job market will remain a challenge for consumers for some time to come.

As with employment, housing prices have stabilized in recent months but probably have further downside risk. In our view, home price gains during the Reporting Period were exaggerated by a summer seasonal boost combined with a foreclosure moratorium earlier in the year that temporarily reduced the supply of foreclosed homes being sold at distressed prices. We expect home prices to turn down again over the winter of 2009-2010 given the typical drop in demand during winter months. Plus, the pent-up foreclosure supply is likely to hit the market during these same months. That said, housing affordability has improved dramatically, particularly in markets like California that led the downturn. We believe that seasonal effects may well turn positive again after the winter, and we expect the California market to establish a true bottom in the spring of 2010, with

MARKET OVERVIEW

other markets to follow. Considering the overall stabilization anticipated in housing prices and employment, as well as the continuing challenges in both sectors, we think consumption is likely to improve but remain rather subdued going forward over the near term.

With respect to a somewhat longer-term perspective, we believe the U.S. economy may expand at a year-over-year rate of about 2.4% over the next 12 months, slightly below the consensus forecast of 2.6%. We anticipate inflation of about 1.4% over the same period, which is also below the consensus forecast of about 1.8%.

In the near-term, we believe the risks to our view ahead are probably tilted to the upside. The recovery appears to have gained momentum, and rebounds after a severe recession tend to exceed expectations. Over the longer term, we continue to see the possibility of higher inflation given the unprecedented amount of monetary and fiscal stimulus, but we see little potential for hyperinflation.

Given this view, in the months ahead, we think there is still value in the non-Treasury sectors of the market, although perhaps not as much so as at the beginning of the Reporting Period. We additionally expect slow growth and low inflation to be supportive of still-lower Treasury yields.

The economic and market forecasts presented herein have been generated by GSAM for informational purposes as of the date of this report. They are based on proprietary models and there can be no assurance that the forecasts will be achieved. Please see additional disclosures at the end of this report.

PORTFOLIO RESULTS

Goldman Sachs Enhanced Income Fund

INVESTMENT OBJECTIVE

The Fund seeks to generate return in excess of traditional money market products while maintaining an emphasis on preservation of capital and liquidity.

Portfolio Management Discussion and Analysis

Below, the Goldman Sachs U.S. Fixed Income Investment Management Team discusses the Fund’s performance and positioning for the six months ended September 30, 2009.


Q	How did the Goldman Sachs Enhanced Income Fund (the “Fund”) perform during the Reporting Period?

A	During the reporting period, the Fund’s Class A, B, Institutional and Administration Shares generated cumulative total returns, without sales charges, of 2.62%, 2.24%, 2.79% and 2.66%, respectively. These returns compare to the 0.53% cumulative total return of the Goldman Sachs Enhanced Income Fund Composite Index (the “Enhanced Income Composite”) during the same period. The Enhanced Income Composite is comprised of 50% of the Six-Month U.S. Treasury Bill Index and 50% of the One-Year U.S. Treasury Note Index, which generated cumulative total returns of 0.39% and 0.66%, respectively, over the same time period.

Q	What key factors were responsible for the Fund’s performance during the six-month Reporting Period?

A	Both top-down and bottom-up strategies contributed to the Fund’s outperformance during the six-month Reporting Period. Within our top-down strategies, our duration and cross-sector strategies contributed the most. Duration is a measure of the Fund’s sensitivity to changes in interest rates. Our cross-sector strategy is one in which we invest Fund assets across a variety of fixed income sectors, including some that may not be included in the Fund’s benchmarks. Bottom-up individual issue selection within the corporate, government/agency and consumer asset-backed securities sectors also was a key factor affecting the Fund’s results.

Q	Which fixed income market sectors most significantly affected Fund performance?

A	The Fund’s cross-sector positioning relative to its benchmarks contributed to its results during the Reporting Period. The Fund benefited most from exposure to various spread, or non-Treasury, sectors. Spreads, or the difference in yields between non-Treasury sectors and duration-equivalent Treasury securities, contracted, as excess liquidity from government policy and programs made its way into the market.

More specifically, the Fund’s overweighted allocations to corporate bonds and agency securities were strong contributors to performance, as both sectors significantly outpaced Treasuries during the Reporting Period. Individual issue selection within the corporate bond sector broadly and within the financials sub-sector in particular also contributed to returns. Financial-related corporate bonds performed well during the Reporting Period, materially outperforming duration-equivalent Treasuries. Effective issue selection within the Treasury inflation protected securities (“TIPS”) sector also proved important, as breakeven spreads widened during the Reporting Period. Breakeven spreads are the differences in yields between non-inflation protected, or nominal, Treasury securities and TIPS.

The major detractor from the Fund’s performance during the Reporting Period was weaker issue selection within the mortgage-related consumer asset-backed securities sector.


Q	Did the Fund’s duration and yield curve positioning strategy help or hurt its results during the Reporting Period?

A	As indicated in our Market Review, U.S. Treasury yields rose during the first months of the Reporting Period but then ended September modestly lower across the yield curve, supported by various factors, including a rise in the unemployment rate to 9.8% and some investors beginning to question the sustainability of the rally in non-Treasury sectors seen in 2009 year-to-date. Tactical management of the Fund’s duration and term structure, or yield curve positioning, as market conditions shifted, contributed to its results during the Reporting Period overall.

PORTFOLIO RESULTS


Q	Were there any notable changes in the Fund’s weightings during the Reporting Period?

A	There were no substantial changes made in the Fund’s sector weightings based on active management decisions during the Reporting Period. That said, there were some shifts in sector weightings due to reclassification of certain securities given the introduction of government intervention programs that resulted from the determination by the U.S. Treasury and Federal Reserve that the severe systemic risk warranted unprecedented action. Other changes in sector weightings were due to appreciation or depreciation of holdings within a specified fixed income sector.

Q	How was the Fund positioned relative to its benchmark indices at the end of September 2009?

A	While the Fund is benchmarked to U.S. Treasuries, it continued to hold a portion of its assets in non-Treasury sectors not represented in the benchmark indices, including corporate bonds, agency securities and asset-backed securities.

FUND BASICS

Enhanced Income Fund

as of September 30, 2009

PERFORMANCE REVIEW


										Goldman Sachs
	Fund Total			Six-Month			One-Year			Enhanced			30–Day
April 1, 2009–	Return			U.S. Treasury			U.S. Treasury			Income Fund			Standardized
September 30, 2009	(based on NAV)¹			Bill Index²			Note Index²			Composite Index³			Yield⁴



Class A		2.62	%		0.39	%		0.66	%		0.53	%		0.86	%
Class B		2.24			0.39			0.66			0.53			0.13
Institutional		2.79			0.39			0.66			0.53			1.21
Administration		2.66			0.39			0.66			0.53			0.97


¹	The net asset value (NAV) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance assumes the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges.
²	The Six-Month U.S. Treasury Bill Index and One-Year U.S. Treasury Note Index, as reported by Merrill Lynch, do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an index.
³	The Goldman Sachs Enhanced Income Fund Composite Index is an equal weight blend of the Six-Month U.S. Treasury Bill Index and the One-Year U.S. Treasury Note Index. The Six-Month U.S. Treasury Bill Index and One-Year U.S. Treasury Note Index, as reported by Merrill Lynch, do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an index.
⁴	The 30-Day Standardized Yield of the Fund is calculated by dividing the net investment income per share (as defined by securities industry regulations) earned by the Fund over a 30-day period (ending on the stated month-end date) by the maximum public offering price per share of the Fund on the last day of the period. This number is then annualized. This yield does not necessarily reflect income actually earned and distributed by the Fund and, therefore, may not be correlated with the dividends or other distributions paid to shareholders.

STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS⁵


For the period ended 9/30/09	One Year			Five Years			Since Inception			Inception Date


Class A		3.19	%		2.96	%		3.19	%	8/2/00
Class B		-1.16			N/A			1.01		6/20/07
Institutional		5.07			3.65			3.74		8/2/00
Administration		4.80			3.43			3.51		8/2/00


⁵	The Standardized Average Annual Total Returns are average annual total returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 1.5% for Class A Shares and the assumed contingent deferred sales charge for Class B Shares (5% maximum declining to 1% in the sixth year). Because Institutional and Administration Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns.
	The returns represent past performance. Past performance does not guarantee future results. The Fund’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Web site at: www.goldmansachsfunds.com to obtain the most recent month-end returns. Performance reflects expense limitations in effect. In their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

FUND BASICS

EXPENSE RATIOS⁶


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


Class A		0.64	%		0.78	%
Class B		1.39			1.53
Institutional		0.30			0.44
Administration		0.55			0.69

⁶

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

SECTOR ALLOCATION⁷

Percentage of Net Assets


⁷	The percentage shown for each investment category of the Fund reflects the value of investments in that category as a percentage of net assets. Short-term investments represent repurchase agreements. Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.
⁸	“Government Guarantee Obligations” are guaranteed under the Federal Deposit Insurance Corporation’s (“FDIC”) Temporary Liquidity Guarantee Program or the Foreign Government Guarantee Program and are backed by the full faith and credit of the United States or the government of a foreign country. The expiration date of the FDIC’s guarantee is the earlier of the maturity date of the debt or June 30, 2012.
⁹	“Agency Debentures” include agency securities offered by companies such as Fannie Mae and Freddie Mac, which operate under a government charter. While they have to report to a government regulator, their assets are not explicitly guaranteed by the government and they otherwise operate like any other publicly traded company.

PORTFOLIO RESULTS

Goldman Sachs Government Income Fund

INVESTMENT OBJECTIVE

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

Portfolio Management Discussion and Analysis

Below, the Goldman Sachs U.S. Fixed Income Investment Management Team discusses the Government Income Fund’s performance and positioning for the six months ended September 30, 2009.


Q	How did the Goldman Sachs Government Income Fund (the “Fund”) perform during the Reporting Period?

A	During the six-month Reporting Period, the Fund’s Class A, B, C, Institutional, Service, IR and R Shares generated cumulative total returns, without sales charges, of 3.00%, 2.61%, 2.60%, 3.18%, 2.92%, 3.13% and 2.85%, respectively. These returns compare to the 1.45% cumulative total return of the Fund’s benchmark, the Barclays Capital U.S. Government/ Mortgage Index (the “Barclays Index”), during the same time period.

Q	What key factors were responsible for the Fund’s performance during the Reporting Period?

A	Both top-down and bottom-up strategies contributed to the Fund’s outperformance during the Reporting Period. Within our top-down strategies, our duration and cross-sector strategies contributed the most. Duration is a measure of the Fund’s sensitivity to changes in interest rates. Our cross-sector strategy is one in which we invest Fund assets across a variety of fixed income sectors, including some that may not be included in the Fund’s benchmark. Bottom-up individual issue selection within the government/agency and collateralized mortgage-backed securities sectors also was a key factor responsible for the Fund’s outperformance.

Q	Which fixed income market sectors most significantly affected Fund performance?

A	The Fund’s cross-sector positioning relative to its benchmark contributed most to its results during the Reporting Period. The Fund benefited most from exposure to various spread, or non-Treasury, sectors. Spreads, or the difference in yields between non-Treasury sectors and duration-equivalent Treasury securities, contracted, as excess liquidity from government policy and programs made its way into the market.

More specifically, early in the Reporting Period, exposure to mortgage-backed securities was particularly beneficial. Having only a modest allocation to Treasury inflation protected securities (“TIPS”) also helped, as breakeven spreads widened during the second calendar quarter. Breakeven spreads are the differences in yields between non-inflation protected, or nominal, Treasury securities and TIPS. During the second half of the Reporting Period, exposure to credit-sensitive mortgages, agency mortgages and commercial mortgage-backed securities contributed significantly to the Fund’s performance. Non-agency residential mortgage-backed securities performed especially well, boosted in part by the release of additional details that indicated support of the sector within the highly anticipated Public-Private Investment Program (“PPIP”) and in part due to a variety of housing market indicators suggesting overall activity seemed to be stabilizing. For example, new home sales increased in August 2009 for the fourth consecutive month. Also, 18 of the 20 cities comprising the S&P/Case-Shiller Home Price Index posted modest price gains, and sales of existing homes rose for the fourth straight month.

Throughout the Reporting Period, individual issue selection among mortgage-backed, government and agency securities contributed positively to the Fund’s results as did issue selection within the TIPS sector.

The major detractors from the Fund’s performance during the Reporting Period were exposure to U.S. Treasury swap spreads and weaker issue selection within the asset-backed securities sector. Swap spreads are the difference between the swap agreement’s fixed interest rate and the yield earned on a Treasury bond with the same maturity. It is used to represent the risk associated with the investment, since changes in interest rates will ultimately affect returns.

PORTFOLIO RESULTS


Q	Did the Fund’s duration and yield curve positioning strategy help or hurt its results during the Reporting Period?

A	During the second quarter of 2009, the Fund’s short duration position in the longer-maturity end of the fixed income yield curve contributed positively to performance, as interest rates rose during these months on improving financial conditions and a stabilization of macroeconomic data. However, this same positioning detracted from performance as interest rates declined during the third calendar quarter, with U.S. government securities rallying as supply was generally well absorbed.

Q	Were there any notable changes in the Fund’s weightings during the Reporting Period?

A	There were no substantial changes made in the Fund’s sector weightings based on active management decisions during the Reporting Period. That said, there were some shifts in sector weightings due to reclassification of certain securities given the introduction of government intervention programs that resulted from the determination by the U.S. Treasury and Federal Reserve that the severe systemic risk warranted unprecedented action. Other changes in sector weightings were due to appreciation or depreciation of holdings within a specified fixed income sector.

Q	How was the Fund positioned relative to its benchmark index at the end of September 2009?

A	At the end of September 2009, the Fund had overweighted allocations relative to the Barclays Index in agency securities, commercial mortgage-backed securities, and to a lesser extent, asset-backed securities. The Fund had underweighted exposure relative to the Barclays index in government securities. The Fund had a rather neutral position in residential mortgage-backed securities compared to the Barclays Index as of September 30, 2009. The Fund maintained its modestly shorter-than-benchmark index duration at the end of the Reporting Period.

FUND BASICS

Government Income Fund

as of September 30, 2009

PERFORMANCE REVIEW


April 1, 2009–	Fund Total Return			Barclays Capital U.S.			30–Day
September 30, 2009	(based on NAV)¹			Govt/Mortgage Index²			Standardized Yield³


Class A		3.00	%		1.45	%		2.46	%
Class B		2.61			1.45			1.81
Class C		2.60			1.45			1.81
Institutional		3.18			1.45			2.90
Service		2.92			1.45			2.40
Class IR		3.13			1.45			2.81
Class R		2.85			1.45			2.33


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 Barclays Capital U.S. Government/Mortgage Index, an unmanaged index does not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an 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 9/30/09	One Year			Five Years			Ten Years			Since Inception			Inception Date


Class A		4.52	%		3.73	%		5.30	%		5.69	%	2/10/93
Class B		2.52			3.33			4.92			5.09		5/1/96
Class C		6.69			3.75			4.92			4.81		8/15/97
Institutional		8.95			4.92			6.11			5.99		8/15/97
Service		8.41			4.39			5.63			5.47		8/15/97
Class IR		8.84			N/A			N/A			5.58		11/30/07
Class R		8.34			N/A			N/A			5.12		11/30/07


⁴	The Standardized Average Annual Total Returns are average annual total returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 3.75% 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). Effective July 29, 2009, the maximum sales charge for Class A was changed retroactively from 4.50% to the current charge of 3.75% for Class A Shares. As a result, the Standardized Average Total Returns reflect the updated sales charge for Class A since inception. Because Institutional, Service, Class IR and Class R Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns.
	The returns represent past performance. Past performance does not guarantee future results. The Fund’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Web site at: www.goldmansachsfunds.com to obtain the most recent month-end returns. Performance reflects expense limitations in effect. In their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

FUND BASICS

EXPENSE RATIOS⁵


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


Class A		0.92	%		0.98	%
Class B		1.67			1.73
Class C		1.67			1.73
Institutional		0.58			0.64
Service		1.08			1.14
Class IR		0.67			0.73
Class R		1.17			1.23

⁵

SECTOR ALLOCATION⁶

Percentage of Net Assets


⁶	The percentage shown for each investment category of the Fund reflects the value of investments in that category as a percentage of net assets. Short-term investments represent repurchase agreements. 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 Ginnie Mae, Fannie Mae and Freddie Mac. Ginnie Mae instruments are backed by the full faith and credit of the United States Government.
⁸	“Agency Debentures” include agency securities offered by companies such as Fannie Mae and Freddie Mac, which operate under a government charter. While they 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.


⁹	“Government Guarantee Obligations” are guaranteed under the Federal Deposit Insurance Corporation’s (“FDIC”) Temporary Liquidity Guarantee Program and are backed by the full faith and credit of the United States. The expiration date of the FDIC’s guarantee is the earlier of the maturity date of the debt or June 30, 2012.

PORTFOLIO RESULTS

Goldman Sachs Inflation Protected Securities Fund

INVESTMENT OBJECTIVE

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

Portfolio Management Discussion and Analysis

Below, the Goldman Sachs U.S. Fixed Income Investment Management Team discusses the Fund’s performance and positioning for the six months ended September 30, 2009.


Q	How did the Goldman Sachs Inflation Protected Securities Fund (the “Fund”) perform during the Reporting Period?

A	During the Reporting Period, the Fund’s Class A, C, Institutional, IR and R Shares generated cumulative total returns, without sales charges, of 3.72%, 3.32%, 3.88%, 3.74% and 3.58%, respectively. These returns compare to the 3.76% cumulative total return of the Fund’s benchmark, the Barclays Capital U.S. TIPS Index (the “Barclays Index”), during the same time period.

Q	What key factors were responsible for the Fund’s performance during the Reporting Period?

A	The Fund’s duration and yield curve positioning, as well as its individual issue selection among Treasury inflation protected securities (“TIPS”), contributed positively, albeit modestly, to the Fund’s performance during the six-month Reporting Period.

Q	Which fixed income market sectors most significantly affected Fund performance?

A	Individual issue selection of TIPS most significantly affected Fund performance, contributing positively during the Reporting Period. More specifically, we generally avoided longer-dated TIPS, which were some of the worst-performing issues within the Barclays Index. We focused instead on intermediate-maturity TIPS, which performed well relative to other maturity buckets in the benchmark index during the Reporting Period.

There were no significant detractors from Fund performance during the Reporting Period.


Q	Did the Fund’s duration and yield curve positioning strategy help or hurt its results during the Reporting Period?

A	The combined effect of the Fund’s duration and yield curve positioning helped its results during the Reporting Period. Duration is a measure of the Fund’s sensitivity to changes in interest rates. Yield curve indicates the spectrum of maturities within the TIPS sector.

For most of the Reporting Period, the Fund’s duration positioning was shorter than that of the Barclays Index. The Fund’s shorter duration positioning was based on our view that longer-dated TIPS yields would be pressured due to heavy supply and inflationary concerns. While this view proved correct, it was our tactical overweight at the short-term end of the TIPS yield curve that contributed most positively to Fund performance. During the Reporting Period, we implemented an overweighted position in shorter-dated TIPS on the belief that an economic recovery would take longer than market participants were pricing into short-term interest rates at the time. Later in the Reporting Period, once short-term interest rates rallied to a level that we felt better reflected our expectations of a prolonged period of easing monetary policy, we reduced this overweighting and moved to a neutral stance at the short-term end of the TIPS yield curve.


Q	Were there any notable changes in the Fund’s weightings during the Reporting Period?

A	There were no substantial changes made in the Fund’s weighting to TIPS during the Reporting Period. As indicated above, we did make adjustments in the Fund’s yield curve positioning as the Reporting Period progressed and market conditions shifted.

Q	How was the Fund positioned relative to its benchmark index at the end of September 2009?

A	At the end of September 2009, the Fund had 79.8% of its total net assets invested in TIPS, with the remainder in cash or invested in repurchase agreements. A repurchase agreement is an agreement between a seller and a buyer, usually of U.S. government securities, whereby the seller agrees to repurchase the securities at an agreed price and, usually, at a stated time.

FUND BASICS

Inflation Protected Securities Fund

as of September 30, 2009

PERFORMANCE REVIEW


April 1, 2009–	Total Return			Barclays Capital			30–Day
September 30, 2009	(based on NAV)¹			U.S. TIPS Index²			Standardized Yield³


Class A		3.72	%		3.76	%		2.20	%
Class C		3.32			3.76			1.54
Institutional		3.88			3.76			2.63
Class IR		3.74			3.76			2.54
Class R		3.58			3.76			2.05


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 Barclays Capital U.S. TIPS Index represents securities that protect against adverse inflation and provide a minimum level of real return. To be included in this index, bonds must have cash flows linked to an inflation index, be sovereign issues denominated in U.S. currency, and have more than one year to maturity, and, as a portion of the index, total a minimum amount outstanding of 100 million U.S. dollars. Individuals cannot invest directly in an index.
³	The 30-Day Standardized Yield of the Fund is calculated by dividing the net investment income per share (as defined by securities industry regulations) earned by the Fund over a 30-day period (ending on the stated month-end date) by the maximum public offering price per share of the Fund on the last day of the period. This number is then annualized. This yield does not necessarily reflect income actually earned and distributed by the Fund and, therefore, may not be correlated with the dividends or other distributions paid to shareholders.

STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS⁴


For the period ended 9/30/09	One Year			Since Inception			Inception Date


Class A		1.31	%		4.17	%	8/31/07
Class C		3.44			5.44		8/31/07
Institutional		5.61			6.60		8/31/07
Class IR		5.40			3.88		11/30/07
Class R		5.01			3.45		11/30/07

⁴

The Standardized Average Annual Total Returns are average annual total returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 3.75% for Class A Shares and the assumed contingent deferred sales charge for Class C Shares (1% if redeemed within 12 months of purchase). Effective July 29, 2009, the maximum sales charge for Class A was changed retroactively from 4.50% to the current charge of 3.75% for Class A Shares. As a result, the Standardized Average Total Returns reflect the updated sales charge for Class A since inception. Because Institutional, Class IR and Class R Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns.

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

FUND BASICS

EXPENSE RATIOS⁵


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


Class A		0.67	%		1.05	%
Class C		1.42			1.80
Institutional		0.33			0.71
Class IR		0.42			0.80
Class R		0.92			1.30

⁵

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

SECTOR ALLOCATION⁶

Percentage of Net Assets


⁶	The percentage shown for each investment category of the Fund reflects the value of investments in that category as a percentage of net assets. Short-term investments represent repurchase agreements. Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.
⁷	“U.S. Treasury Obligations” percentages are grouped by effective maturity. The weighted average maturity is 7.4% and 8.8%, respectively, at September 30, 2009 and March 31, 2009.

PORTFOLIO RESULTS

Goldman Sachs Short Duration Government Fund

INVESTMENT OBJECTIVE

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

Portfolio Management Discussion and Analysis

Below, the Goldman Sachs U.S. Fixed Income Investment Management Team discusses the Fund’s performance and positioning for the six months ended September 30, 2009.


Q	How did the Goldman Sachs Short Duration Government Fund (the “Fund”) perform during the Reporting Period?

A	During the Reporting Period, the Fund’s Class A, B, C, Institutional, Service and IR Shares generated cumulative total returns, without sales charges, of 2.07%, 1.77%, 1.60%, 2.25%, 2.00% and 2.19%, respectively. These returns compare to the 0.71% cumulative total return of the Fund’s benchmark, the Two-Year U.S. Treasury Note Index, during the same time period. To compare, the Barclays Capital U.S. Government Bond Index (1- 3 Year) returned 1.00% for the semi-annual period.

Q	What key factors were responsible for the Fund’s performance during the six-month Reporting Period?

A	Both top-down and bottom-up strategies contributed to the Fund’s outperformance during the six-month Reporting Period. Within our top-down strategies, our cross-sector strategies contributed the most. Our cross-sector strategy is one in which we invest Fund assets across a variety of fixed income sectors, including some that may not be included in the Fund’s benchmark. Bottom-up individual issue selection within the government/agency and agency mortgage-backed securities sectors also was a key factor affecting the Fund’s performance.

Q	Which fixed income market sectors most significantly affected Fund performance?

A	The Fund’s cross-sector positioning relative to its benchmark contributed to its results during the Reporting Period. The Fund benefited from exposure to various spread, or non-Treasury, sectors. Spreads, or the difference in yields between non-Treasury sectors and duration-equivalent Treasury securities, contracted, as excess liquidity from government policy and programs made its way into the market.

More specifically, the Fund’s overweighted exposure to agency securities was a strong contributor to performance, as the sector significantly outpaced Treasuries during the Reporting Period. Individual issue selection within the agency mortgage-backed securities sector also contributed to returns. Our focus on premium, or higher rated, coupon pass-through mortgage-backed securities was particularly beneficial. These securities outperformed duration-equivalent Treasuries, as spreads tightened during the Reporting Period. Pass-through mortgages consist of a pool of residential mortgage loans, where homeowners’ monthly payments of principal, interest and prepayments pass from the original bank through a government agency or investment bank to investors.

The major detractor from the Fund’s performance during the Reporting Period was its overweighted allocation to short-dated agency securities. These securities underperformed relative to their longer-dated counterparts.


Q	Did the Fund’s duration and yield curve positioning strategy help or hurt its results during the Reporting Period?

A	As indicated in our Market Review, U.S. Treasury yields rose during the first months of the Reporting Period but then ended September modestly lower across the yield curve, supported by various factors, including a rise in the unemployment rate to 9.8% and some investors beginning to question the sustainability of the rally in non-Treasury sectors seen in 2009 year-to-date. Tactical management of the Fund’s duration and term structure, or yield curve positioning, as market conditions shifted, detracted from its results during the Reporting Period overall.

PORTFOLIO RESULTS

More specifically, the Fund held underweighted positions in the 10-year and 20-year segments of the yield curve. As longer-dated securities declined more than shorter-dated securities, such positioning detracted from the Fund’s results. Duration is a measure of the Fund’s sensitivity to changes in interest rates.


Q	Were there any notable changes in the Fund’s weightings during the Reporting Period?

A	There were no substantial changes made in the Fund’s sector weightings based on active management decisions during the Reporting Period. That said, there were some shifts in sector weightings due to reclassification of certain securities given the introduction of government intervention programs that resulted from the determination by the U.S. Treasury and Federal Reserve that the severe systemic risk warranted unprecedented action. Other changes in sector weightings were due to appreciation or depreciation of holdings within a specified fixed income sector.

Q	How was the Fund positioned relative to its benchmark index at the end of September 2009?

A	While the Fund is benchmarked to U.S. Treasuries, it continued to hold a portion of its assets in non-Treasury sectors not represented in the benchmark index, including corporate bonds, mortgage-backed securities and agency securities.-

FUND BASICS

Short Duration Government Fund

as of September 30, 2009

PERFORMANCE REVIEW


April 1, 2009–	Fund Total Return			Two-Year U.S.			30–Day
September 30, 2009	(based on NAV)¹			Treasury Note Index²			Standardized Yield³


Class A		2.07	%		0.71	%		1.09	%
Class B		1.77			0.71			0.51
Class C		1.60			0.71			0.36
Institutional		2.25			0.71			1.44
Service		2.00			0.71			0.95
Class IR		2.19			0.71			1.38


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 Two-Year U.S. Treasury Note Index, as reported by Merrill Lynch, does not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an 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 9/30/09	One Year			Five Years			Ten Years			Since Inception			Inception Date


Class A		5.25	%		4.30	%		4.78	%		4.84	%	5/1/97
Class B		4.16			3.99			4.31			4.35		5/1/97
Class C		4.94			3.83			4.15			4.07		8/15/97
Institutional		7.20			4.99			5.33			6.09		8/15/88
Service		6.58			4.45			4.80			4.96		4/10/96
Class IR		7.08			N/A			N/A			6.61		11/30/07

⁴

The Standardized Average Annual Total Returns are average annual total returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 1.5% for Class A Shares, the assumed contingent deferred sales charge for Class B Shares (2% maximum declining to 0% after three years) and the assumed contingent deferred sales charge for Class C Shares (1% if redeemed within 12 months of purchase). Effective July 29, 2009, the maximum sales charge for Class A was changed retroactively from 2.00% to the current charge of 1.50% for Class A Shares. As a result, the Standardized Average Total Returns reflect the updated sales charge for Class A since inception. Because Institutional, Service and Class IR Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns.

FUND BASICS

EXPENSE RATIOS⁵


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


Class A		0.86	%		0.91	%
Class B		1.46			1.66
Class C		1.61			1.66
Institutional		0.52			0.57
Service		1.02			1.07
Class IR		0.61			0.66

⁵

SECTOR ALLOCATION⁶

Percentage of Net Assets


⁶	The percentage shown for each investment category of the Fund reflects the value of investments in that category as a percentage of net assets. Short-term investments represent repurchase agreements. Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.
⁷	“Agency Debentures” include agency securities offered by companies such as Fannie Mae and Freddie Mac, which operate under a government charter. While they have to report to a government regulator, their assets are not explicitly guaranteed by the government and they otherwise operate like any other publicly traded company.
⁸	“Federal Agencies” are mortgage-backed securities that consist of Ginnie Mae, Fannie Mae and Freddie Mac. Ginnie Mae instruments are backed by the full faith and credit of the United States Government.
⁹	“Government Guarantee Obligations” are guaranteed under the Federal Deposit Insurance Corporation’s (“FDIC”) Temporary Liquidity Guarantee Program and are backed by the full faith and credit of the United States. The expiration date of the FDIC’s guarantee is the earlier of the maturity date of the debt or June 30, 2012.

PORTFOLIO RESULTS

Goldman Sachs Ultra-Short Duration Government Fund

INVESTMENT OBJECTIVE

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

Portfolio Management Discussion and Analysis

Below, the Goldman Sachs U.S. Fixed Income Investment Management Team discusses the Fund’s performance and positioning for the six months ended September 30, 2009.


Q	How did the Goldman Sachs Ultra-Short Duration Government Fund (the “Fund”) perform during the Reporting Period?

A	During the Reporting Period, the Fund’s Class A, Institutional, Service and IR Shares generated cumulative total returns, without sales charges, of 2.34%, 2.63%, 2.36% and 2.59%, respectively. These returns compare to the 0.53% cumulative total return of the Goldman Sachs Ultra-Short Duration Government Fund Composite Index (the “Ultra-Short Duration Government Composite”), during the same period. The Ultra-Short Duration Government Composite is comprised 50% of the Six-Month U.S. Treasury Bill Index and 50% of the One-Year U.S. Treasury Note Index, which generated cumulative total returns of 0.39% and 0.66%, respectively, over the same period.

Q	What key factors were responsible for the Fund’s performance during the Reporting Period?

A	Both top-down and bottom-up strategies contributed to the Fund’s outperformance during the six-month Reporting Period. Within our top-down strategies, our cross-sector strategies contributed the most. Our cross-sector strategy is one in which we invest Fund assets across a variety of fixed income sectors, including some that may not be included in the Fund’s benchmarks. Bottom-up individual issue selection within the government/agency and agency mortgage-backed securities sectors also was a key factor affecting the Fund’s performance.

Q	Which fixed income market sectors most significantly affected Fund performance?

A	The Fund’s cross-sector positioning relative to its benchmarks contributed to its results during the Reporting Period. The Fund benefited from exposure to various spread, or non-Treasury, sectors. Spreads, or the difference in yields between non-Treasury sectors and duration-equivalent Treasury securities, contracted, as excess liquidity from government policy and programs made its way into the market.

More specifically, the Fund’s overweighted exposure to agency securities was a strong contributor to performance, as the sector significantly outpaced Treasuries during the Reporting Period. The Fund’s overweighted exposure to non-agency mortgage-backed securities was also a significant contributor to results, primarily in July 2009. Non-agency mortgage-backed securities performed well during the period as a whole, boosted in part by the release of additional details that indicated support of the sector within the highly anticipated Public-Private Investment Program (“PPIP”) and in part due to a variety of housing market indicators suggesting overall activity seemed to be stabilizing. For example, new home sales increased in August 2009 for the fourth consecutive month. Also, 18 of the 20 cities comprising the S&P/Case-Shiller Home Price Index posted modest price gains, and sales of existing homes rose for the fourth straight month.

Individual issue selection within the agency mortgage-backed securities sector also contributed to returns. Our focus on premium, or higher rated, coupon pass-through mortgage-backed securities was particularly beneficial. These securities outperformed duration-equivalent Treasuries, as spreads tightened during the Reporting Period. Pass-through mortgages consist of a pool of residential mortgage loans, where homeowners’ monthly payments of principal, interest and prepayments pass from the original bank through a government agency or investment bank to investors.

The major detractor from the Fund’s performance during the Reporting Period was weaker issue selection within the consumer asset-backed securities sector.

PORTFOLIO RESULTS


Q	Did the Fund’s duration and yield curve positioning strategy help or hurt its results during the Reporting Period?

A	As indicated in our Market Review, U.S. Treasury yields rose during the first months of the Reporting Period but then ended September modestly lower across the yield curve, supported by various factors, including a rise in the unemployment rate to 9.8% and some investors beginning to question the sustainability of the rally in non-Treasury sectors seen in 2009 year-to-date. Tactical management of the Fund’s duration and term structure, or yield curve positioning, as market conditions shifted detracted from its results during the Reporting Period overall.


Q	Were there any notable changes in the Fund’s weightings during the Reporting Period?

A	There were no substantial changes made in the Fund’s sector weightings based on active management decisions during the Reporting Period. That said, there were some shifts in sector weightings due to reclassification of certain securities given the introduction of government intervention programs that resulted from the determination by the U.S. Treasury and Federal Reserve that the severe systemic risk warranted unprecedented action. Other changes in sector weightings were due to appreciation or depreciation of holdings within a specified fixed income sector.

Q	How was the Fund positioned relative to its benchmark indices at the end of September 2009?

A	While the Fund is benchmarked to U.S. Treasuries, it continued to hold a portion of its assets in non-Treasury sectors not represented in the benchmark indices, including mortgage-backed securities, asset-backed securities and agency securities.

FUND BASICS

Ultra-Short Duration Government Fund

as of September 30, 2009

PERFORMANCE REVIEW


										Goldman Sachs
										Ultra-Short
	Fund Total			Six-Month			One-Year			Duration Government			30–Day
April 1, 2009–	Return			U.S. Treasury			U.S. Treasury			Fund			Standardized
September 30, 2009	(based on NAV)¹			Bill Index²			Note Index²			Composite Index³			Yield⁴


Class A		2.34	%		0.39	%		0.66	%		0.53	%		1.39	%
Institutional		2.63			0.39			0.66			0.53			1.75
Service		2.36			0.39			0.66			0.53			1.25
Class IR		2.59			0.39			0.66			0.53			1.66


¹	The net asset value (NAV) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance assumes the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges.
²	The Six-Month U.S. Treasury Bill Index and One-Year U.S. Treasury Note Index, as reported by Merrill Lynch, do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an index.
³	The Goldman Sachs Ultra-Short Duration Government Fund Composite Index is an equal weight blend of the Six-Month U.S. Treasury Bill Index and the One-Year U.S. Treasury Note Index. The Six-Month U.S. Treasury Bill Index and One-Year U.S. Treasury Note Index, as reported by Merrill Lynch, do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an index.
⁴	The 30-Day Standardized Yield of the Fund is calculated by dividing the net investment income per share (as defined by securities industry regulations) earned by the Fund over a 30-day period (ending on the stated month-end date) by the maximum public offering price per share of the Fund on the last day of the period. This number is then annualized. This yield does not necessarily reflect income actually earned and distributed by the Fund and, therefore, may not be correlated with the dividends or other distributions paid to shareholders.

STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS⁵


For the period ended 9/30/09	One Year			Five Years			Ten Years			Since Inception			Inception Date


Class A		0.15	%		2.44	%		3.11	%		3.80	%	5/15/95
Institutional		2.06			3.10			3.66			4.40		7/17/91
Service		1.65			2.59			3.16			3.45		3/27/97
Class IR		1.97			N/A			N/A			1.44		11/30/07

⁵

FUND BASICS

EXPENSE RATIOS⁶


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


Class A		0.83	%		0.90	%
Institutional		0.49			0.56
Service		0.99			1.06
Class IR		0.58			0.65

⁶

SECTOR ALLOCATION⁷

Percentage of Net Assets


⁷	The percentage shown for each investment category of the Fund reflects the value of investments in that category as a percentage of net assets. Short-term investments represent repurchase agreements. Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.
⁸	“Federal Agencies” are mortgage-backed securities that consist of Ginnie Mae, Fannie Mae and Freddie Mac. Ginnie Mae instruments are backed by the full faith and credit of the United States Government.
⁹	“Agency Debentures” include agency securities offered by companies such as Fannie Mae and Freddie Mac, which operate under a government charter. While they have to report to a government regulator, their assets are not explicitly guaranteed by the government and they otherwise operate like any other publicly traded company.


¹⁰	“Government Guarantee Obligations” are guaranteed under the Federal Deposit Insurance Corporation’s (“FDIC”) Temporary Liquidity Guarantee Program and are backed by the full faith and credit of the United States. The expiration date of the FDIC’s guarantee is the earlier of the maturity date of the debt or June 30, 2012.

GOLDMAN SACHS ENHANCED INCOME FUND

Schedule of Investments

September 30, 2009 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Obligations – 23.0%


	Banks – 5.4%
	AmSouth Bank NA
	$	775,000		4.850	%		04/01/13	$	695,793
	Bank of America Corp.
		975,000		7.400			01/15/11		1,023,799
	Bank of New York Mellon Corp.^(a)
		2,000,000		0.389			03/23/12		1,968,364
	Barclays Bank PLC
		3,225,000		5.450			09/12/12		3,465,633
	BB&T Corp.
		2,725,000		3.850			07/27/12		2,810,930
	Bear Stearns & Co., Inc.
		3,000,000		0.645	^(a)		10/22/10		2,992,482
		4,025,000		6.950			08/10/12		4,480,570
	Citigroup, Inc.
		325,000		5.250			02/27/12		333,946
	Credit Suisse (USA), Inc.^(b)
		3,525,000		6.125			11/15/11		3,805,185
	JPMorgan Chase & Co.
		1,550,000		7.875			06/15/10		1,620,488
	Keybank National Association
		450,000		7.300			05/01/11		468,451
	National Australia Bank Ltd.^(b)
		875,000		8.600			05/19/10		917,950
	PNC Funding Corp.^(a)
		1,376,000		0.628			01/31/12		1,327,035
	Rabobank Nederland^(c)
		5,900,000		2.650			08/17/12		5,944,250
	Royal Bank of Scotland Group PLC^(c)
		2,975,000		4.875			08/25/14		3,020,726
	The Charles Schwab Corp.
		1,075,000		4.950			06/01/14		1,133,500
	US Bank NA
		1,875,000		6.375			08/01/11		2,025,538
	Wachovia Corp.
		1,925,000		0.639	^(a)		10/15/11		1,897,757
		4,350,000		5.500			05/01/13		4,664,972
	Wells Fargo Bank NA
		525,000		7.550			06/21/10		549,162

									45,146,531


	Brokerage – 0.6%
	Credit Suisse First Boston Mortgage Securities, Inc.
		250,000		4.125			01/15/10		252,291
	Morgan Stanley & Co.
		1,350,000		5.050			01/21/11		1,395,852
		2,750,000		6.750	^(b)		04/15/11		2,932,253
		850,000		6.000			05/13/14		904,915

									5,485,311


	Captive Financial – 0.2%
	American Express Centurion
		623,000		5.200			11/26/10		642,246
	Caterpillar Financial Services Corp.
		725,000		4.850			12/07/12		769,620

									1,411,866


	Construction Machinery – 0.2%
	John Deere Capital Corp.
		2,000,000		5.400			04/07/10		2,050,858


	Electric – 2.0%
	Carolina Power & Light Co.^(b)
		3,140,000		6.500			07/15/12		3,471,756
	Pacific Gas & Electric Co.
		2,850,000		1.252	^(a)		06/10/10		2,865,920
		725,000		4.200	^(b)		03/01/11		750,470
	Public Service Co. of Colorado^(b)
		475,000		7.875			10/01/12		552,039
	Scottish Power Ltd.^(b)
		7,750,000		4.910			03/15/10		7,891,058
	Southern Co.^(b)
		875,000		4.150			05/15/14		903,897

									16,435,140


	Energy – 1.6%
	Conoco Funding Co.^(b)
		1,375,000		6.350			10/15/11		1,506,721
	ConocoPhillips
		1,200,000		9.375			02/15/11		1,323,661
	ConocoPhillips Canada Funding Co. I^(b)
		1,000,000		5.300			04/15/12		1,080,912
	EnCana Corp.^(b)
		1,525,000		6.300			11/01/11		1,650,948
		625,000		4.750			10/15/13		655,064
	Shell International Finance BV
		6,125,000		1.300			09/22/11		6,141,593
	StatoilHydro ASA^(b)
		650,000		3.875			04/15/14		680,645

									13,039,544


	Food and Beverage – 1.0%
	Diageo Finance BV
		3,700,000		5.500			04/01/13		4,019,321
	Kellogg Co.^(b)
		575,000		6.600			04/01/11		616,246
		3,200,000		5.125			12/03/12		3,473,610

									8,109,177


	Health Care Services^(b) – 0.2%
	UnitedHealth Group, Inc.
		1,400,000		5.125			11/15/10		1,445,696


	Life Insurance – 1.8%
	AXA Financial, Inc.^(b)
		2,125,000		7.750			08/01/10		2,215,784
	ING Security Life Institutional Funding^(c)
		2,500,000		4.250			01/15/10		2,474,440
	Metropolitan Life Global Funding I^(c)
		3,400,000		5.125			11/09/11		3,568,803
	Nationwide Life Global Funding I^(c)
		1,175,000		5.450			10/02/12		1,166,492
	Prudential Financial, Inc.
		3,625,000		5.800			06/15/12		3,843,884

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

GOLDMAN SACHS ENHANCED INCOME FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Obligations – (continued)
	Life Insurance – (continued)

	TIAA Global Markets, Inc.^(b)(c)
	$	1,900,000		5.125	%		10/10/12	$	2,038,227

									15,307,630


	Media^(b) – 0.1%
	The Walt Disney Co.
		1,100,000		4.700			12/01/12		1,186,680


	Noncaptive-Financial – 1.0%
	American General Finance Corp.
		1,500,000		4.875			05/15/10		1,438,125
	Countrywide Home Loans, Inc.
		1,025,000		4.000			03/22/11		1,041,913
	General Electric Capital Corp.
		1,400,000		5.200			02/01/11		1,454,287
	HSBC Finance Corp.^(a)
		450,000		0.674			08/09/11		436,760
		1,350,000		0.860			07/19/12		1,278,455
		1,025,000		0.649			09/14/12		971,383
	John Deere Capital Corp.
		1,775,000		5.250			10/01/12		1,919,490

									8,540,413


	Pharmaceuticals^(b) – 1.1%
	GlaxoSmithKline Capital, Inc.
		1,375,000		4.850			05/15/13		1,477,208
	Merck & Co., Inc.
		2,550,000		1.875			06/30/11		2,578,254
	Roche Holdings, Inc.^(c)
		5,025,000		4.500			03/01/12		5,317,073

									9,372,535


	Pipelines – 0.2%
	TransCanada Pipelines Ltd.
		1,200,000		8.625			05/15/12		1,380,173


	Property/Casualty Insurance – 0.7%
	Metropolitan Life Global Funding I^(c)
		1,725,000		5.125			04/10/13		1,788,528
	The Chubb Corp.^(b)
		450,000		6.000			11/15/11		485,438
	The Travelers Cos., Inc.^(b)
		3,150,000		5.375			06/15/12		3,327,767

									5,601,733


	Real Estate Investment Trust^(b) – 0.6%
	Simon Property Group LP
		1,522,000		4.875			03/18/10		1,535,146
		1,325,000		5.000			03/01/12		1,366,349
	WEA Finance LLC^(c)
		141,000		5.400			10/01/12		144,848
	Westfield Capital Corp. Ltd.^(c)
		1,825,000		4.375			11/15/10		1,851,771

									4,898,114


	Retailers – 0.3%
	Wal-Mart Stores, Inc.
		2,400,000		3.200			05/15/14		2,450,412


	Software – 0.3%
	Microsoft Corp.
		2,800,000		2.950			06/01/14		2,837,722


	Technology^(b) – 1.5%
	Dell, Inc.
		1,425,000		3.375			06/15/12		1,476,575
	Hewlett-Packard Co.
		1,600,000		2.250			05/27/11		1,629,877
		2,725,000		4.250			02/24/12		2,879,129
	International Business Machines Corp.
		700,000		6.500			10/15/13		797,997
	Oracle Corp.
		5,050,000		4.950			04/15/13		5,465,676

									12,249,254


	Tobacco – 0.6%
	Philip Morris International, Inc.
		4,775,000		4.875			05/16/13		5,072,612


	Wireless Telecommunications – 1.7%
	New Cingular Wireless Services, Inc.^(b)
		2,150,000		7.875			03/01/11		2,333,253
	Telefonica Emisiones SAU^(a)(b)
		2,150,000		0.809			02/04/13		2,110,354
	Verizon Wireless Capital LLC^(c)
		4,500,000		3.750			05/20/11		4,642,771
		2,025,000		5.250	^(b)		02/01/12		2,162,350
	Vodafone Group PLC^(b)
		575,000		7.750			02/15/10		589,376
		1,500,000		5.350			02/27/12		1,606,947
		950,000		5.000			12/16/13		1,013,156

									14,458,207


	Wirelines Telecommunications – 1.9%
	AT&T, Inc.^(b)
		950,000		6.250			03/15/11		1,012,675
	Deutsche Telekom International Finance BV
		1,500,000		8.500			06/15/10		1,572,291
	France Telecom SA^(b)
		5,175,000		7.750			03/01/11		5,603,360
		1,325,000		4.375			07/08/14		1,388,978
	Telefonica Emisiones SAU^(b)
		2,850,000		5.984			06/20/11		3,036,678
	Telefonica Europe BV^(b)
		2,900,000		7.750			09/15/10		3,074,000

									15,687,982


	TOTAL CORPORATE OBLIGATIONS
	(Cost $188,117,799)							$	192,167,590




Agency Debentures – 19.8%


	FHLB^(d)
	$	10,700,000		0.500	%		07/27/11	$	10,708,474
	FHLMC
		8,500,000		2.000	^(e)		02/25/11		8,546,767
		17,100,000		2.050			03/09/11		17,212,227

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

GOLDMAN SACHS ENHANCED INCOME FUND

Schedule of Investments (continued)

September 30, 2009 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Agency Debentures – (continued)

	FHLMC – (continued)
	$	62,600,000		2.000	%		03/16/11	$	62,970,217
		5,000,000		2.500			03/23/12		5,039,065
	FNMA
		4,000,000		2.000			03/02/11		4,016,844
		27,500,000		2.000			04/01/11		27,711,008
		13,500,000		2.050			04/01/11		13,602,195
		10,000,000		2.125			04/15/11		10,087,160
		5,830,000		2.500			02/17/12		5,869,603


	TOTAL AGENCY DEBENTURES
	(Cost $165,349,795)							$	165,763,560




Asset-Backed Securities – 8.2%


	Autos – 4.6%
	Bank of America Auto Trust Series 2009-1A, Class A2^(c)
	$	9,250,000		1.700	%		12/15/11	$	9,305,189
	Bank of America Auto Trust Series 2009-2A, Class A3^(c)
		6,500,000		2.130			09/15/13		6,467,500
	Capital Auto Receivables Asset Trust Series 2007-3, Class A3A
		1,118,755		5.020			09/15/11		1,139,814
	Capital One Prime Auto Receivables Trust Series 2007-2, Class A3
		1,177,417		4.890			01/15/12		1,199,665
	Chase Manhattan Auto Owner Trust Series 2006-B, Class A4
		595,672		5.110			04/15/14		611,919
	Daimler Chrysler Auto Trust Series 2006-D, Class A3
		89,089		4.980			02/08/11		89,679
	Ford Credit Auto Owner Trust Series 2009-B, Class A3
		15,000,000		2.790			08/15/13		15,316,493
	Harley-Davidson Motorcycle Trust Series 2006-2, Class A2
		398,437		5.350			03/15/13		411,379
	Long Beach Auto Receivables Trust Series 2006-A, Class A4
		1,592,056		5.500			05/15/13		1,630,984
	Nissan Auto Receivables Owner Trust Series 2007-B, Class A3
		1,009,586		5.030			05/16/11		1,025,221
	USAA Auto Owner Trust Series 2007-2, Class A3
		1,263,303		4.900			02/15/12		1,285,745

									38,483,588


	Credit Card – 3.5%
	Bank of America Credit Card Trust Series 2006-A16, Class A16
		425,000		4.720			05/15/13		440,432
	Capital One Multi-Asset Execution Trust Series 2007-A9, Class A9
		5,600,000		4.950			08/15/12		5,606,591
	Chase Issuance Trust Series 2005-A8, Class A8^(a)
		5,700,000		0.283			10/15/12		5,684,450
	Chase Issuance Trust Series 2007-A15, Class A
		2,500,000		4.960			09/17/12		2,599,487
	Chase Issuance Trust Series 2009-A5, Class A5^(a)
		15,000,000		1.043			06/15/12		15,047,809

									29,378,769


	Home Equity^(a) – 0.0%
	Aegis Asset Backed Securities Trust Series 2006-1, Class A1
		50,462		0.326			01/25/37		48,176
	Amresco Residential Securities Mortgage Loan Trust Series 1998-2, Class M1F
		33,984		6.745			06/25/28		16,474
	Centex Home Equity Series 2004-D, Class MV3
		189,136		1.246			09/25/34		2,698
	Countrywide Asset-Backed Certificates Series 2006-20, Class 2A1
		63,099		0.296			04/25/47		60,232
	Morgan Stanley ABS Capital I Series 2004-HE4, Class M3
		66,640		1.746			05/25/34		13,753

									141,333


	Manufactured Housing – 0.0%
	Lehman ABS Manufactured Housing Contract Series 2001-B, Class A3
		89,068		4.350			05/15/14		73,302


	Student Loan^(c) – 0.1%
	GCO Slims Trust Series 2006-1A Class Note
		237,089		5.720			03/01/22		177,816


	TOTAL ASSET-BACKED SECURITIES
	(Cost $68,181,597)							$	68,254,808




Foreign Debt Obligations – 9.5%


	Sovereign – 5.1%
	European Investment Bank^(a)
	$	6,250,000		0.614	%		03/05/12	$	6,302,956
	Kommunalbanken AS
		11,900,000		5.125			05/30/12		12,804,698
	Landeskreditbank Baden-Wuerttemberg Foerderbank
		7,340,000		3.250			10/29/10		7,486,073
	Landwirtschaftliche Rentenbank
		8,200,000		1.875			09/24/12		8,196,474
	NRW.BANK
		7,500,000		5.375			07/19/10		7,727,558

									42,517,759


	Supranational – 4.4%
	International Bank for Reconstruction & Development
		14,300,000		1.400	^(d)		04/14/11		14,377,959
		22,500,000		1.650			05/18/11		22,666,100

									37,044,059


	TOTAL FOREIGN DEBT OBLIGATIONS
	(Cost $79,321,981)							$	79,561,818

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

GOLDMAN SACHS ENHANCED INCOME FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Commercial Paper – 2.1%


	Variable Funding Capital Corp.
	$	6,000,000		0.910	%		10/23/09	$	5,996,517
	Westpac Banking Corp.
		12,000,000		0.750			07/09/10		11,929,750


	TOTAL COMMERCIAL PAPER
	(Cost $17,926,267)							$	17,926,267




Government Guarantee Obligations – 24.8%


	ANZ National (International) Ltd.^(c)(f)
	$	4,700,000		0.651	%^(a)		08/05/11	$	4,692,104
		5,800,000		3.250			04/02/12		5,997,227
	Bank of America NA^(a)(g)
		4,000,000		0.469			12/23/10		4,012,600
	Citibank NA^(g)
		1,700,000		1.875			05/07/12		1,711,257
	Citigroup Funding, Inc.^(g)
		17,000,000		0.821	^(a)		04/30/12		17,141,525
		3,900,000		2.125			07/12/12		3,943,052
		8,400,000		1.875			11/15/12		8,385,552
	Citigroup, Inc.^(g)
		2,600,000		0.859	^(a)		12/09/10		2,622,084
		7,000,000		2.125			04/30/12		7,099,071
	Danske Bank A/S^(c)(f)
		5,200,000		2.500			05/10/12		5,267,691
	Dexia Credit Local^(c)(f)
		6,300,000		2.375			09/23/11		6,386,146
	FIH Erhvervsbank AS^(c)(f)
		12,300,000		0.645			09/29/10		12,221,065
		5,500,000		2.450			08/17/12		5,559,330
	General Electric Capital Corp.^(g)
		12,000,000		0.518	^(a)		06/01/12		12,058,212
		3,400,000		2.000			09/28/12		3,418,948
		5,000,000		0.292	^(a)		12/21/12		4,998,405
		1,800,000		2.125			12/21/12		1,816,349
		10,000,000		2.625			12/28/12		10,245,510
	Japan Finance Corp.^(f)
		2,700,000		2.000			06/24/11		2,734,514
	JPMorgan Chase & Co.^(a)(g)
		1,600,000		0.487			02/23/11		1,603,315
	Landwirtschaftliche Rentenbank^(f)
		3,500,000		3.125			06/15/11		3,620,236
		2,400,000		4.125			07/15/13		2,529,036
		6,500,000		4.875			01/10/14		7,070,706
	LeasePlan Corp. NV^(c)(f)
		1,800,000		3.000			05/07/12		1,833,870
	Royal Bank of Scotland PLC^(a)(c)(f)
		4,700,000		1.159			05/11/12		4,770,035
	Societe Financement de l’Economie Francaise^(c)(f)
		15,700,000		1.500			10/29/10		15,748,776
		2,525,000		2.125			01/30/12		2,559,085
		21,300,000		2.375			03/26/12		21,622,442
	Suncorp-Metway Ltd.^(a)(c)(f)
		7,500,000		0.668			12/17/10		7,500,095
		5,500,000		1.759			04/15/11		5,596,641
	SunTrust Bank^(a)(g)
		4,500,000		0.945			12/16/10		4,538,223
	Westpac Banking Corp.^(c)(f)
		7,500,000		3.250			12/16/11		7,770,975


	TOTAL GOVERNMENT GUARANTEE OBLIGATIONS
	(Cost $205,826,122)							$	207,074,077




U.S. Treasury Obligations – 4.4%


	United States Treasury Inflation Protected Securities
	$	19,780,578		0.875	%		04/15/10	$	19,786,749
		3,959,456		3.500			01/15/11		4,127,114
		7,270,058		1.875			07/15/13		7,510,879
		4,895,268		2.000			01/15/14		5,069,662


	TOTAL U.S. TREASURY OBLIGATIONS
	(Cost $36,265,723)							$	36,494,404


	TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENT
	(Cost $760,989,284)							$	767,242,524




Repurchase Agreement^(h) – 8.5%


	Joint Repurchase Agreement Account II
	$	71,000,000		0.061	%		10/01/09	$	71,000,000
	Maturity Value: $71,000,120
	(Cost $71,000,000)


	TOTAL INVESTMENTS – 100.3%
	(Cost $831,989,284)							$	838,242,524


	LIABILITIES IN EXCESS OF OTHER ASSETS – (0.3)%								(2,889,684	)


	NET ASSETS – 100.0%							$	835,352,840

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, 2009.

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

(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 from registration. Total market value of Rule 144A securities amounts to $157,596,266, which represents approximately 18.9% of net assets as of September 30, 2009.

(d)		Coupon increases periodically based upon a predetermined schedule. Interest rate disclosed is that which is in effect at September 30, 2009.

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

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

GOLDMAN SACHS ENHANCED INCOME FUND

Schedule of Investments (continued)

September 30, 2009 (Unaudited)


(f)		Represents securities which are guaranteed by a foreign government. Total market value of the securities amounts to $123,479,974, which represents approximately 14.8% of net assets as of September 30, 2009.

(g)		This debt is guaranteed under the Federal Deposit Insurance Corporation’s (“FDIC”) Temporary Liquidity Guarantee Program and is backed by the full faith and credit of the United States. The expiration date of the FDIC’s guarantee is the earlier of the maturity date of the debt or June 30, 2012. Total market value of the securities amounts to $83,594,103, which represents approximately 10.0% of net assets as of September 30, 2009.

(h)		Joint repurchase agreement was entered into on September 30, 2009. Additional information appears on page 53.




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

ADDITIONAL INVESTMENT INFORMATION

FUTURES CONTRACTS — At September 30, 2009, the following futures contracts were open:


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

Eurodollars		317		December 2009	$	78,956,775		$	521,483
Eurodollars		239		March 2010		59,376,563			247,328
Eurodollars		(111	)	June 2010		(27,480,825	)		(362,165	)
Eurodollars		(225	)	September 2010		(55,482,188	)		(157,312	)
Eurodollars		(205	)	December 2010		(50,350,563	)		(148,575	)
Eurodollars		(205	)	March 2011		(50,173,750	)		(161,138	)
Eurodollars		(5	)	June 2011		(1,219,750	)		(6,138	)
2 Year U.S. Treasury Notes		(116	)	December 2009		(25,168,375	)		(103,769	)
5 Year U.S. Treasury Notes		(848	)	December 2009		(98,447,500	)		(1,072,121	)


TOTAL								$	(1,242,407	)

INTEREST RATE SWAP CONTRACT — At September 30, 2009, the Fund had an outstanding swap contract with the following terms:

Rates Exchanged

Notional

Payments

Amount

Termination

received by

made by

Swap Counterparty

(000s)

Date

the Fund

Market Value*

Deutsche Bank Securities, Inc.

18,400

07/02/13

3 month LIBOR

4.283%

(1,537,263

)


*		There are no upfront payments on the swap contract, therefore, the unrealized loss of the swap contract is equal to its market value.

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

GOLDMAN SACHS GOVERNMENT INCOME FUND

Schedule of Investments

September 30, 2009 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – 58.9%


	Collateralized Mortgage Obligations – 7.3%
	Adjustable Rate Non-Agency^(a) – 0.6%
	Adjustable Rate Mortgage Trust Series 2004-5, Class 2A1
	$	102,809		5.007	%		04/25/35	$	86,519
	Bear Stearns Adjustable Rate Mortgage Trust Series 2003-05, Class 1A1
		33,446		4.299			08/25/33		28,652
	Chase Mortgage Finance Corp. Series 2007-A1, Class 3A1
		1,770,686		4.728			02/25/37		1,586,450
	Chase Mortgage Finance Corp. Series 2007-A1, Class 7A1
		1,151,796		4.601			02/25/37		1,026,911
	Countrywide Home Loan Trust Series 2003-37, Class 1A1
		48,422		3.815			08/25/33		39,660
	CS First Boston Mortgage Securities Corp. Series 2003-AR9, Class 2A2
		149,976		3.963			03/25/33		120,509
	First Horizon Mortgage Pass-Through Trust Series 2004-AR6, Class 2A1
		60,313		4.750			12/25/34		52,754
	JPMorgan Mortgage Trust Series 2005-A4, Class 2A1
		514,633		5.055			07/25/35		407,173
	Master Adjustable Rate Mortgages Trust Series 2004-9, Class 2A1
		6,573		0.626			11/25/34		5,427
	MLCC Mortgage Investors, Inc. Series 2004-E, Class A2B
		1,283,871		0.999			11/25/29		1,018,559
	Sequoia Mortgage Trust Series 2004-09, Class A2
		755,522		1.039			10/20/34		532,036
	Structured Adjustable Rate Mortgage Loan Trust Series 2004-05, Class 1A
		223,642		3.768			05/25/34		196,520
	Structured Adjustable Rate Mortgage Loan Trust Series 2004-12, Class 3A2
		80,981		3.396			09/25/34		68,073
	Structured Asset Securities Corp. Series 2003-34A, Class 3A3
		876,430		3.563			11/25/33		650,199
	Washington Mutual Mortgage Pass-Through Certificates Series 2004-AR3, Class A2
		236,023		3.137			06/25/34		220,757

									6,040,199


	Interest Only^(b) – 0.0%
	CS First Boston Mortgage Securities Corp. Series 2003-AR18, Class 2X^(a)(c)
		102,653		0.000			07/25/33		—
	CS First Boston Mortgage Securities Corp. Series 2003-AR20, Class 2X^(a)(c)
		141,887		0.000			08/25/33		—
	FNMA REMIC Series 2004-47, Class EI^(a)(c)
		2,247,536		0.000			06/25/34		24,851
	FNMA REMIC Series 2004-62, Class DI^(a)(c)
		997,841		0.000			07/25/33		14,466
	FNMA REMIC Series 2004-71, Class DI^(a)(c)
		1,917,006		0.000			04/25/34		41,839
	FNMA Series 151, Class 2
		16,452		9.500			07/25/22		3,184
	Master Adjustable Rate Mortgages Trust Series 2003-2, Class 3AX^(a)
		44,707		0.120			08/25/33		64
	Master Adjustable Rate Mortgages Trust Series 2003-2, Class 4AX^(a)
		20,837		0.320			07/25/33		76

									84,480


	Inverse Floaters^(a) – 0.1%
	GNMA Series 2001-48, Class SA
		59,385		25.703			10/16/31		87,266
	GNMA Series 2001-51, Class SA
		46,102		31.455			10/16/31		70,282
	GNMA Series 2001-51, Class SB
		57,854		25.703			10/16/31		85,714
	GNMA Series 2001-59, Class SA
		51,606		25.541			11/16/24		76,213
	GNMA Series 2002-13, Class SB
		202,052		36.441			02/16/32		322,055

									641,530


	Principal Only^(h) – 0.0%
	FNMA REMIC Trust Series G-35, Class N
		15,251		0.000			10/25/21		12,497


	Regular Floater^(a) – 1.9%
	BCAP LLC Trust Series 2006-RR1, Class CF
		779,062		0.886			11/25/36		701,300
	FHLMC REMIC Series 1760, Class ZB
		475,047		2.880			05/15/24		475,900
	FNMA REMIC Series 2006-68, Class FM
		17,658,586		0.696			08/25/36		17,231,176

									18,408,376


	Sequential Fixed Rate – 4.7%
	FHLMC REMIC Series 2329, Class ZA
		3,037,809		6.500			06/15/31		3,247,719
	FHLMC REMIC Series 2590, Class NV
		2,000,000		5.000			03/15/18		2,122,257
	FHLMC REMIC Series 3284, Class CA
		12,630,677		5.000			10/15/21		13,340,093
	FNMA REMIC Series 2001-53, Class GH
		389,819		8.000			09/25/16		425,987
	FNMA REMIC Series 2007-36, Class AB
		17,643,254		5.000			11/25/21		18,608,583
	GNMA 2002-42 Class KZ
		7,253,460		6.000			06/16/32		7,744,762

									45,489,401


	TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS							$	70,676,483

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

GOLDMAN SACHS GOVERNMENT INCOME FUND

Schedule of Investments (continued)

September 30, 2009 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – (continued)

	Commercial Mortgage-Backed Securities – 2.8%
	Interest Only^(a)(b)(d) – 0.1%
	Bear Stearns Commercial Mortgage Securities, Inc. Series 2003-T10, Class X2
	$	14,340,781		1.325	%		03/13/40	$	243,390
	CS First Boston Mortgage Securities Corp. Series 2003-C3, Class ASP
		7,712,427		1.872			05/15/38		89,123
	JPMorgan Chase Commercial Mortgage Securities Corp. Series 2004-C1, Class X2
		16,229,082		1.152			01/15/38		172,122
	Prudential Commercial Mortgage Trust Series 2003-PWR1, Class X2
		15,520,011		1.591			02/11/36		304,695

									809,330


	Sequential Fixed Rate – 2.7%
	Citigroup/Deutsche Bank Commercial Mortgage Trust Series 2005-CD1, Class A4
		10,000,000		5.399			07/15/44		9,864,119
	First Union National Bank Commercial Mortgage Trust Series 2000-C2, Class A1
		8,044,583		7.202			10/15/32		8,292,015
	GMAC Commercial Mortgage Securities, Inc. Series 2002-C1, Class A2
		8,000,000		6.278			11/15/39		8,399,690

									26,555,824


	TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES							$	27,365,154


	Federal Agencies – 48.8%
	Adjustable Rate FHLMC^(a) – 0.7%
		252,569		4.804			11/01/32		256,398
		3,108,816		4.549			09/01/33		3,159,885
		3,194,958		4.206			08/01/35		3,281,976

									6,698,259


	Adjustable Rate FNMA^(a) – 2.3%
		360,984		4.699			11/01/32		371,176
		593,619		4.785			12/01/32		610,792
		3,727,837		4.208			05/01/33		3,821,014
		78,669		3.069			06/01/33		80,431
		4,014,125		4.081			10/01/33		4,167,092
		3,908,545		4.416			02/01/35		3,985,453
		4,842,822		4.782			09/01/35		5,038,288
		3,891,461		5.230			06/01/37		4,114,320

									22,188,566


	Adjustable Rate GNMA^(a) – 0.8%
		162,894		4.375			06/20/23		169,511
		72,946		4.625			07/20/23		75,265
		76,167		4.625			08/20/23		78,591
		198,079		4.625			09/20/23		204,264
		57,231		4.375			03/20/24		59,443
		504,392		4.375			04/20/24		524,883
		62,252		4.375			05/20/24		64,781
		521,535		4.375			06/20/24		542,723
		281,623		4.625			07/20/24		291,081
		394,853		4.625			08/20/24		407,856
		125,908		4.625			09/20/24		129,899
		151,759		4.125			11/20/24		156,837
		126,843		4.125			12/20/24		131,556
		106,431		4.375			01/20/25		110,755
		51,866		4.375			02/20/25		53,973
		180,723		4.375			05/20/25		188,065
		130,649		4.625			07/20/25		135,179
		65,321		4.375			02/20/26		67,924
		3,537		4.625			07/20/26		3,655
		198,403		4.375			01/20/27		206,435
		63,942		4.375			02/20/27		66,522
		516,700		4.375			04/20/27		537,692
		63,200		4.375			05/20/27		65,767
		55,757		4.375			06/20/27		58,022
		20,111		4.125			11/20/27		20,744
		80,365		4.125			12/20/27		82,959
		166,804		4.375			01/20/28		173,580
		54,422		4.250			02/20/28		56,515
		64,263		4.375			03/20/28		66,873
		310,533		4.625			07/20/29		320,935
		126,356		4.625			08/20/29		130,490
		42,755		4.625			09/20/29		44,189
		160,323		4.125			10/20/29		165,464
		203,591		4.125			11/20/29		210,125
		50,286		4.125			12/20/29		51,888
		65,580		4.250			01/20/30		68,117
		34,220		4.250			02/20/30		35,549
		137,980		4.250			03/20/30		143,330
		208,557		4.375			04/20/30		217,030
		522,291		4.375			05/20/30		543,508
		45,711		4.375			06/20/30		47,567
		438,778		4.625			07/20/30		454,711
		68,182		4.625			09/20/30		70,659
		135,655		3.875			10/20/30		139,289
		295,202		4.000			03/20/32		305,179

									7,679,380


	FHLMC – 11.7%
		475,123		6.500			12/01/13		506,580
		21,139		4.000			02/01/14		21,686
		14,241		6.500			02/01/14		15,184
		345,086		4.000			03/01/14		354,028
		68,377		4.000			04/01/14		70,149
		2,343,345		7.500			11/01/14		2,546,577
		3,637		7.000			02/01/15		3,883
		973,361		5.500			07/01/15		1,039,139
		99,298		8.000			07/01/15		107,550
		13,255		7.000			01/01/16		14,255
		59,178		7.000			02/01/16		63,642
		37,248		7.000			09/01/17		41,438
		23,558		7.000			10/01/17		26,208
		422,204		4.500			05/01/18		445,913
		263,336		5.500			05/01/18		282,345
		92,620		4.500			06/01/18		97,821

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

GOLDMAN SACHS GOVERNMENT INCOME FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

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

	$	1,876,130		5.500	%		06/01/18	$	2,011,270
		368,888		4.500			09/01/18		389,602
		292,391		4.500			10/01/18		308,811
		31,345		10.000			10/01/18		33,335
		296,519		4.500			11/01/18		313,172
		7,352,126		4.500			12/01/18		7,764,999
		1,405,793		5.000			12/01/18		1,494,851
		113,813		4.500			01/01/19		120,205
		211,654		4.500			03/01/19		223,096
		5,293,711		4.500			06/01/19		5,590,989
		444,568		5.000			06/01/19		471,414
		4,114,822		5.000			11/01/19		4,363,302
		586,025		4.500			02/01/20		616,454
		62,474		10.000			07/01/20		66,679
		81,452		10.000			10/01/20		86,491
		229,542		6.500			07/01/21		246,372
		16,749		6.500			08/01/22		17,982
		150,937		9.000			10/01/22		172,679
		1,233,261		4.500			10/01/23		1,263,992
		11,501		7.500			03/01/27		12,830
		668,861		6.500			07/01/28		703,214
		5,280		8.000			07/01/30		5,765
		34,164		7.500			12/01/30		37,479
		5,881		7.500			01/01/31		6,452
		199,920		7.000			04/01/31		219,170
		1,487,900		6.000			05/01/33		1,592,693
		1,795,023		6.000			10/01/34		1,906,763
		3,844,639		4.500			10/01/35		3,904,586
		224,055		5.000			12/01/35		232,667
		975,371		5.500			01/01/36		1,027,311
		2,149		5.500			02/01/36		2,264
		20,047		6.000			06/01/36		21,309
		24,260		6.000			10/01/36		25,786
		41,047		6.000			11/01/36		43,585
		11,144		5.500			01/01/37		11,722
		53,623		5.500			03/01/37		56,719
		214,362		5.500			04/01/37		226,395
		20,237		6.000			05/01/37		21,486
		24,407		5.500			06/01/37		25,839
		22,848		6.000			06/01/37		24,258
		331,031		5.500			07/01/37		348,074
		468,563		6.000			07/01/37		497,464
		25,889		5.500			08/01/37		27,222
		86,843		6.000			09/01/37		92,173
		188,473		6.000			11/01/37		200,039
		680,700		5.500			12/01/37		716,516
		447,151		5.500			02/01/38		471,639
		175,794		5.000			04/01/38		182,358
		514,626		5.500			04/01/38		543,212
		42,645		6.000			04/01/38		45,262
		297,972		5.500			05/01/38		314,523
		7,670,034		6.000			05/01/38		8,138,326
		2,575,769		5.500			06/01/38		2,721,223
		340,661		5.500			07/01/38		358,413
		63,414		5.500			08/01/38		66,719
		121,358		6.000			09/01/38		128,729
		160,820		5.500			10/01/38		169,707
		14,698,001		6.000			11/01/38		15,680,355
		2,024,145		5.500			12/01/38		2,130,571
		1,760,361		6.000			12/01/38		1,868,540
		1,119,852		5.500			01/01/39		1,178,732
		110,373		5.500			02/01/39		116,176
		44,379		6.000			02/01/39		47,075
		1,072,088		5.000			03/01/39		1,112,292
		2,613,023		5.000			04/01/39		2,711,012
		41,051		5.500			04/01/39		43,504
		844,363		5.000			05/01/39		877,345
		21,465,528		5.000			06/01/39		22,215,314
		1,526,936		5.000			07/01/39		1,584,964
		350,833		5.000			08/01/39		364,213
		5,799,327		4.500			09/01/39		5,875,921
		1,905,749		5.000			09/01/39		1,972,082
		147,350		5.000			10/01/39		152,467

									114,252,548


	FNMA – 26.5%
		204,298		4.500			03/01/13		210,423
		96,594		4.500			05/01/13		99,569
		133,599		4.000			06/01/13		137,022
		209,509		4.500			06/01/13		216,041
		180,638		4.000			07/01/13		185,976
		222,117		4.500			07/01/13		229,705
		256,563		4.000			08/01/13		263,253
		105,172		4.500			08/01/13		108,490
		388,839		4.000			09/01/13		399,056
		451,331		4.500			09/01/13		465,881
		794,120		4.000			10/01/13		815,139
		46,959		7.000			03/01/14		51,516
		407,703		4.000			04/01/14		418,835
		1,693,739		5.500			09/01/14		1,809,556
		67,578		7.000			03/01/15		72,469
		22,173		8.000			01/01/16		24,133
		106,683		6.000			11/01/16		114,609
		361,244		8.000			11/01/16		408,728
		687,793		5.000			08/01/17		719,700
		393,241		5.000			11/01/17		415,470
		14,076,380		5.000			12/01/17		14,919,583
		2,392,478		5.000			01/01/18		2,527,722
		790,999		5.000			02/01/18		840,167
		2,971,867		5.000			03/01/18		3,156,591
		982,168		5.000			04/01/18		1,043,217
		174,137		4.500			05/01/18		183,951
		1,147,935		5.000			05/01/18		1,219,310
		736,746		4.500			06/01/18		778,247
		1,627,499		5.000			06/01/18		1,729,064
		77,027		4.500			07/01/18		81,368
		88,947		5.000			07/01/18		94,476
		6,973,630		4.000			08/01/18		7,262,608
		117,443		4.500			08/01/18		124,023
		69,346		5.000			08/01/18		73,657
		83,629		4.500			09/01/18		88,315
		1,033,410		5.000			09/01/18		1,097,644

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

GOLDMAN SACHS GOVERNMENT INCOME FUND

Schedule of Investments (continued)

September 30, 2009 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

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

	$	881,997		4.500	%		10/01/18	$	931,446
		5,409,989		5.000			10/01/18		5,746,753
		183,425		4.500			11/01/18		193,702
		48,633		5.000			11/01/18		51,668
		293,410		4.500			12/01/18		309,849
		103,001		4.500			01/01/19		108,771
		702,259		5.000			01/01/19		744,340
		879,720		5.000			02/01/19		932,645
		141,904		4.500			03/01/19		149,854
		1,975,093		5.000			04/01/19		2,097,861
		1,116,233		4.500			05/01/19		1,174,055
		498,265		5.000			05/01/19		527,755
		653,458		4.500			06/01/19		687,307
		2,051,955		5.000			06/01/19		2,179,501
		38,648		5.000			07/01/19		40,936
		33,441		5.000			08/01/19		35,420
		335,914		6.500			08/01/19		365,563
		2,225,328		6.000			09/01/19		2,390,663
		30,556		9.500			08/01/20		34,242
		69,036		9.500			10/01/20		77,363
		40,161		5.000			12/01/20		42,437
		2,777,459		6.000			12/01/20		2,983,815
		92,544		6.000			05/01/21		98,870
		42,666		6.000			07/01/21		45,583
		1,073,930		6.000			09/01/21		1,145,825
		720,832		5.000			01/01/22		757,877
		212,165		5.000			04/01/22		222,923
		152,126		5.000			06/01/22		159,670
		82,006		6.000			09/01/22		87,423
		2,237,368		5.500			02/01/23		2,359,650
		1,518,897		6.000			02/01/23		1,622,728
		362,722		4.500			05/01/23		376,363
		37,657		5.000			05/01/23		39,512
		3,271,984		5.500			08/01/23		3,450,812
		705,355		6.000			11/01/28		753,163
		31,994		6.500			11/01/28		34,563
		1,597		5.500			04/01/29		1,682
		49,591		7.000			11/01/30		54,608
		751,460		6.000			03/01/31	��	800,821
		282,152		7.000			07/01/31		308,442
		44,227		5.000			12/01/31		45,870
		684		6.000			03/01/32		729
		21,502,775		5.500			04/01/33		22,682,915
		65,759		6.000			05/01/33		69,997
		62,086		5.000			06/01/33		64,393
		25,715		5.000			07/01/33		26,696
		8,006,901		5.500			07/01/33		8,401,176
		364,910		5.000			08/01/33		378,471
		4,204,369		4.500			09/01/33		4,284,866
		55,583		5.000			09/01/33		57,648
		29,280		5.500			09/01/33		30,862
		91,558		5.000			10/01/33		94,961
		111,606		5.000			11/01/33		115,753
		17,336		5.000			12/01/33		17,980
		14,459		5.500			12/01/33		15,197
		29,509		6.000			12/01/33		31,393
		17,759		5.000			01/01/34		18,419
		37,013		5.500			02/01/34		39,006
		5,926		5.500			04/01/34		6,250
		34,293		5.500			05/01/34		36,134
		1,246		5.500			06/01/34		1,313
		36,349		5.000			07/01/34		37,700
		51,001		5.500			08/01/34		53,804
		3,407		5.500			10/01/34		3,592
		399,848		5.500			12/01/34		421,200
		9,901		6.000			12/01/34		10,527
		173,170		6.000			02/01/35		184,115
		25,798		5.000			03/01/35		26,743
		137,395		5.000			04/01/35		142,288
		61,269		5.500			04/01/35		64,512
		1,624,909		6.000			04/01/35		1,730,286
		22,439		5.000			05/01/35		23,260
		4,489,149		5.000			07/01/35		4,649,207
		50,276		5.500			07/01/35		52,940
		1,497,698		6.000			07/01/35		1,594,524
		978,274		5.000			08/01/35		1,013,733
		5,513		5.500			08/01/35		5,811
		3,362		6.000			08/01/35		3,569
		295,545		5.000			09/01/35		306,300
		49,293		5.500			09/01/35		51,902
		271,273		5.000			10/01/35		281,015
		558,400		6.000			10/01/35		594,391
		117,604		5.000			11/01/35		121,908
		1,422,508		6.000			11/01/35		1,508,912
		25,098		5.500			12/01/35		26,466
		772,592		6.000			01/01/36		820,940
		1,213		5.500			02/01/36		1,276
		68,452		6.000			02/01/36		72,586
		495,484		6.000			03/01/36		526,582
		514,080		6.000			04/01/36		546,571
		90,213		6.000			06/01/36		95,719
		44,710		5.000			07/01/36		46,374
		612,886		6.000			09/01/36		652,731
		2,799		5.500			10/01/36		2,950
		31,264		6.000			10/01/36		33,220
		1,946,360		6.000			11/01/36		2,066,166
		44,941		5.000			12/01/36		46,542
		56,771		5.500			12/01/36		59,842
		856,409		6.000			12/01/36		911,339
		151,523		5.500			01/01/37		159,307
		514,015		6.000			01/01/37		546,669
		57,530		5.500			02/01/37		60,679
		67,911		6.000			02/01/37		72,087
		215,636		5.500			03/01/37		227,109
		785,330		5.500			04/01/37		825,695
		222,200		6.000			04/01/37		235,827
		1,533,944		5.500			05/01/37		1,612,327
		125,687		6.000			05/01/37		133,401
		188,164		5.500			06/01/37		197,802
		25,932		6.000			06/01/37		27,522
		122,206		5.500			07/01/37		128,608
		183,322		6.000			07/01/37		194,565

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

GOLDMAN SACHS GOVERNMENT INCOME FUND


	Principal		Interest			Maturity
	Amount		Rate			Date			Value

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

	$	37,566		5.500	%		08/01/37		$	39,371
		150,145		6.000			08/01/37			159,325
		5,661		5.500			09/01/37			5,968
		23,177		6.000			09/01/37			24,592
		222,358		5.500			10/01/37			233,675
		308,844		6.000			11/01/37			327,765
		2,267,054		7.500			11/01/37			2,472,768
		7,025		5.500			12/01/37			7,398
		405,917		5.500			01/01/38			426,972
		35,104		6.000			01/01/38			37,246
		374,551		5.500			02/01/38			393,707
		4,395,618		5.000			03/01/38			4,552,899
		3,392,309		5.500			03/01/38			3,566,347
		115,755		6.000			03/01/38			122,872
		3,145,964		5.500			04/01/38			3,306,364
		1,102,195		5.500			05/01/38			1,161,873
		35,052		6.000			05/01/38			37,179
		1,483,408		5.500			06/01/38			1,559,506
		1,476,006		5.500			07/01/38			1,552,905
		32,685		6.000			07/01/38			34,659
		686,802		5.500			08/01/38			723,522
		1,274,614		6.000			08/01/38			1,351,589
		2,080,541		5.500			09/01/38			2,193,864
		2,382,528		6.000			09/01/38			2,526,410
		1,958,099		5.500			10/01/38			2,059,692
		196,411		6.000			10/01/38			208,273
		2,061,241		5.500			11/01/38			2,172,165
		6,279,522		6.000			11/01/38			6,658,747
		2,927,992		5.500			12/01/38			3,089,441
		686,522		6.000			12/01/38			727,981
		2,864,212		5.500			01/01/39			3,023,318
		378,302		6.000			01/01/39			401,148
		136,627		5.000			02/01/39			141,815
		786,205		5.500			02/01/39			828,965
		22,674,524		6.000			02/01/39			24,058,023
		40,492		5.000			03/01/39			42,004
		520,080		5.500			03/01/39			549,291
		75,365		5.000			04/01/39			78,179
		29,335		5.500			04/01/39			30,979
		1,178,806		5.000			05/01/39			1,223,663
		68,077		5.500			05/01/39			71,617
		191,682		4.500			06/01/39			194,796
		3,232,831		5.000			06/01/39			3,344,898
		224,820		4.500			07/01/39			228,473
		2,575,600		5.000			07/01/39			2,669,588
		381,164		4.500			08/01/39			387,235
		248,361		5.000			08/01/39			257,715
		500,000		4.500			09/01/39			508,125
		1,508,177		5.000			09/01/39			1,561,965
		2,000,000		4.500			10/01/39			2,031,500
		4,809,573		5.000			10/01/39			4,982,071
		11,000,000		4.500			TBA-30yr^(e	⁾		11,136,641
		1,000,000		5.000			TBA-30yr^(e	⁾		1,032,812
		14,000,000		5.500			TBA-30yr^(e	⁾		14,643,132
		7,000,000		6.000			TBA-30yr^(e	⁾		7,321,875

										258,630,048


	GNMA – 6.8%
		417		9.000			08/15/16			460
		276,123		7.000			12/15/27			303,647
		30,671		6.500			08/15/28			33,300
		462,695		6.000			01/15/29			492,864
		287,138		7.000			10/15/29			315,812
		4,827,948		5.500			12/15/32			5,107,097
		10,133,912		5.000			05/15/33			10,564,205
		6,062,016		5.000			06/15/33			6,320,048
		20,985,808		5.000			07/15/33			21,879,077
		2,528,079		5.000			09/15/33			2,635,688
		4,349,340		5.000			03/15/34			4,528,342
		2,718,051		5.500			06/15/34			2,870,448
		3,265,851		6.000			12/15/38			3,457,464
		1,080,814		5.000			04/15/39			1,125,294
		2,250,724		5.000			05/15/39			2,342,506
		298,693		4.500			06/15/39			303,838
		3,214,816		5.000			06/15/39			3,346,241
		1,220,381		5.000			07/15/39			1,269,814

										66,896,145


	TOTAL FEDERAL AGENCIES								$	476,344,946


	TOTAL MORTGAGE-BACKED OBLIGATIONS
	(Cost $557,873,109)								$	574,386,583




Agency Debentures – 20.8%


	FFCB
	$	9,000,000		4.750	%		11/06/12		$	9,766,962
		5,100,000		4.875			12/16/15			5,592,565
		10,000,000		5.050			08/01/18			10,750,920
	FHLB^(f)
		10,000,000		5.375			06/13/14			11,205,580
	FHLMC
		20,000,000		2.050			03/09/11			20,131,260
		1,600,000		2.125			03/16/11			1,610,682
		13,100,000		1.750			07/27/11			13,192,787
		18,200,000		1.625			08/11/11			18,290,145
		19,500,000		2.050			05/11/12			19,583,830
	FNMA
		8,500,000		2.000			03/02/11			8,535,793
		30,000,000		2.050			04/01/11			30,227,100
		8,000,000		1.750			04/15/11			8,042,290
		13,935,000		1.700			04/29/11			14,032,113
	New Valley Generation
		3,701,655		4.929			01/15/21			3,686,737
	New Valley Generation II
		4,007,812		5.572			05/01/20			4,315,708
	Private Export Funding Corp.
		14,600,000		3.050			10/15/14			14,732,661
	Small Business Administration
		249,846		6.700			12/01/16			271,720
		176,829		7.150			03/01/17			194,138
		145,701		7.500			04/01/17			159,829
		74,293		7.300			05/01/17			81,419
		54,410		6.800			08/01/17			59,400

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

GOLDMAN SACHS GOVERNMENT INCOME FUND

Schedule of Investments (continued)

September 30, 2009 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Agency Debentures – (continued)
	Small Business Administration – (continued)
	$	196,929		6.300	%		05/01/18	$	212,577
		127,913		6.300			06/01/18		138,098
	Tennessee Valley Authority
		4,000,000		5.375			04/01/56		4,258,096
	Tennessee Valley Authority Series B
		4,200,000		4.375			06/15/15		4,472,891


	TOTAL AGENCY DEBENTURES
	(Cost $198,919,396)							$	203,545,301




Asset-Backed Securities – 0.4%


	Home Equity^(a) – 0.4%
	Bear Stearns Adjustable Rate Mortgage Trust Series 2004-1, Class 21A1
	$	120,159		4.217	%		04/25/34	$	101,185
	Citigroup Mortgage Loan Trust, Inc. Series 2004-OPT1, Class A2
		594,954		0.606			10/25/34		396,846
	Household Home Equity Loan Trust Series 2007-3, Class APT
		3,274,130		1.446			11/20/36		2,660,229
	Securitized Asset Backed Receivables LLC Trust Series 2004-OP2, Class A2
		21,324		0.596			08/25/34		11,147

									3,169,407


	Manufactured Housing – 0.0%
	Mid-State Trust Series 4, Class A
		181,475		8.330			04/01/30		176,275


	TOTAL ASSET-BACKED SECURITIES
	(Cost $4,199,947)							$	3,345,682




Government Guarantee Obligations^(g) – 10.5%


	Citigroup Funding, Inc.
	$	3,200,000		2.125	%		07/12/12	$	3,235,325
		6,800,000		1.875			10/22/12		6,817,850
		10,400,000		1.875			11/15/12		10,382,112
		6,200,000		2.250			12/10/12		6,283,477
	General Electric Capital Corp.
		12,900,000		2.000			09/28/12		12,971,891
		14,500,000		0.292	^(a)		12/21/12		14,495,374
		8,300,000		2.125			12/21/12		8,375,389
		9,700,000		2.625			12/28/12		9,938,145
	GMAC, Inc.
		20,000,000		2.200			12/19/12		20,213,520
	PNC Funding Corp.
		10,000,000		2.300			06/22/12		10,179,540


	TOTAL GOVERNMENT GUARANTEE OBLIGATIONS
	(Cost $102,100,527)							$	102,892,623




U.S. Treasury Obligations – 10.0%


	United States Treasury Bonds
	$	13,200,000		4.500	%		08/15/39	$	14,231,250
	United States Treasury Inflation Protected Securities
		15,460,616		0.875			04/15/10		15,465,440
		1,608,529		3.500			01/15/11		1,676,640
		7,444,008		1.625			01/15/15		7,583,583
		7,703,997		2.000			01/15/16		7,992,897
		6,185,178		2.500			07/15/16		6,629,738
		1,302,084		2.000			01/15/26		1,299,235
	United States Treasury Principal-Only STRIPS^(h)
		50,400,000		0.000			08/15/20		33,195,103
		12,900,000		0.000			05/15/21		8,145,744
		3,000,000		0.000			11/15/21		1,843,848


	TOTAL U.S. TREASURY OBLIGATIONS
	(Cost $96,302,412)							$	98,063,478




Municipal Debt Obligations – 0.2%


	New Jersey – 0.2%
	New Jersey Economic Development Authority Series A (MBIA)
	$	2,000,000		7.425	%		02/15/29	$	2,260,400
	(Cost $2,000,000)


	TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENT
	(Cost $961,395,391)							$	984,494,067




Repurchase Agreement⁽ⁱ⁾ – 3.0%


	Joint Repurchase Agreement Account II
	$	29,100,000		0.061	%		10/01/09	$	29,100,000
	Maturity Value: $29,100,049
	(Cost $29,100,000)


	TOTAL INVESTMENTS – 103.8%
	(Cost $990,495,391)							$	1,013,594,067


	LIABILITIES IN EXCESS OF OTHER ASSETS – (3.8)%								(36,905,383	)


	NET ASSETS – 100.0%							$	976,688,684

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, 2009.

(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.

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

GOLDMAN SACHS GOVERNMENT INCOME FUND


(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 amounts to $809,330, which represents approximately 0.1% of net assets as of September 30, 2009.

(e)		TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement when the specific mortgage pools are assigned. Total market value of TBA securities (excluding forward sales contracts, if any) amounts to $27,300,338, which represents approximately 2.8% of net assets as of September 30, 2009.

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

(g)		This debt is guaranteed under the Federal Deposit Insurance Corporation’s (“FDIC”) Temporary Liquidity Guarantee Program and is backed by the full faith and credit of the United States. The expiration date of the FDIC’s guarantee is the earlier of the maturity date of the debt or June 30, 2012. Total market value of the securities amounts to $102,892,623, which represents approximately 10.5% of net assets as of September 30, 2009.

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

(i)		Joint repurchase agreement was entered into on September 30, 2009. Additional information appears on page 53.




Investment Abbreviations:
FFCB	—	Federal Farm Credit Bank
FHLB	—	Federal Home Loan Bank
FHLMC	—	Federal Home Loan Mortgage Corp.
FNMA	—	Federal National Mortgage Association
GNMA	—	Government National Mortgage Association
LIBOR	—	London Interbank Offered Rate
MBIA	—	Insured by Municipal Bond Investors Assurance
REMIC	—	Real Estate Mortgage Investment Conduit
STRIPS	—	Separate Trading of Registered Interest and Principal of Securities

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

GOLDMAN SACHS GOVERNMENT INCOME FUND

Schedule of Investments (continued)

September 30, 2009 (Unaudited)

ADDITIONAL INVESTMENT INFORMATION

FORWARD SALES CONTRACTS — At September 30, 2009, the Fund had the following forward sales contract:

Interest

Maturity

Settlement

Principal

Description

Rate

Date

Amount

Value

FHLMC (Proceeds Receivable: $6,745,885)

5.000%

TBA-30yr^(e)

10/14/09

6,616,236

6,834,122

FUTURES CONTRACTS — At September 30, 2009, the following futures contracts were open:


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

Eurodollars		80		November 2009	$	19,933,000		$	8,904
Eurodollars		117		December 2009		29,141,775			92,714
Eurodollars		(1	)	December 2010		(245,613	)		(201	)
2 Year U.S. Treasury Notes		237		December 2009		51,421,594			260,629
5 Year U.S. Treasury Notes		54		December 2009		6,269,063			10,223
10 Year U.S. Treasury Notes		812		December 2009		96,082,438			1,476,692
30 Year U.S. Treasury Bonds		265		December 2009		32,164,375			658,611


TOTAL								$	2,507,572

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

GOLDMAN SACHS GOVERNMENT INCOME FUND


ADDITIONAL INVESTMENT INFORMATION (continued)

INTEREST RATE SWAP CONTRACTS — At September 30, 2009, the Fund had outstanding swap contracts with the following terms:


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

Banc of America Securities LLC	$	9,000			05/25/15	4.533%	3 month LIBOR	$	953,140		$	—		$	953,140
		5,100	^(a)		12/16/16	3 month LIBOR	3.250%		(8,034	)		108,830			(116,864	)
		8,600	^(a)		12/16/16	3 month LIBOR	3.250		(13,548	)		150,500			(164,048	)
		8,800	^(a)		12/16/16	3 month LIBOR	3.250		(13,863	)		139,751			(153,614	)
		9,500	^(a)		12/16/16	3 month LIBOR	3.250		(14,965	)		87,294			(102,259	)
		9,500	^(a)		12/16/16	3 month LIBOR	3.250		(14,966	)		89,339			(104,305	)
		11,700	^(a)		12/16/16	3 month LIBOR	3.250		(18,431	)		290,160			(308,591	)
		23,600	^(a)		12/16/16	3 month LIBOR	3.250		(37,177	)		598,260			(635,437	)
		27,800	^(a)		08/14/17	4.955	3 month LIBOR		941,636			—			941,636
		43,000			11/02/19	3 month LIBOR	4.865		(6,061,387	)		—			(6,061,387	)
		15,700	^(a)		08/15/22	3 month LIBOR	5.078		(888,189	)		—			(888,189	)
		11,700	^(a)		12/16/24	3 month LIBOR	3.750		113,731			757,150			(643,419	)
Deutsche Bank Securities, Inc.		3,100	^(a)		12/16/14	3 month LIBOR	3.000		(27,519	)		5,999			(33,518	)
		13,100	^(a)		09/05/17	4.568	3 month LIBOR		220,256			—			220,256
		7,700	^(a)		09/06/22	3 month LIBOR	4.710		(213,387	)		—			(213,387	)
		4,400	^(a)		12/16/24	3 month LIBOR	3.750		42,771			291,713			(248,942	)
JPMorgan Securities, Inc.		37,900	^(a)		12/16/19	3.500	3 month LIBOR		(170,007	)		(453,484	)		283,477
		6,400	^(a)		12/16/24	3 month LIBOR	3.750		62,212			439,108			(376,896	)
		10,600	^(a)		12/16/24	3 month LIBOR	3.750		103,038			679,618			(576,580	)


TOTAL								$	(5,044,689	)	$	3,184,238		$	(8,228,927	)


(a)	Represents forward starting interest rate swaps whose effective dates of commencement of accruals and cash flows occur subsequent to September 30, 2009.

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

GOLDMAN SACHS INFLATION PROTECTED SECURITIES FUND

Schedule of Investments

September 30, 2009 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

U.S. Treasury Obligations – 79.8%


	United States Treasury Inflation Protected Securities

	$	1,237,390		3.500	%		01/15/11	$	1,288,046
		3,146,558		2.375			04/15/11		3,239,973
		13,175,690		3.000			07/15/12		14,007,405
		1,407,108		1.875			07/15/13		1,453,719
		5,594,592		2.000			01/15/14		5,793,899
		15,339,168		1.625			01/15/15		15,626,777
		15,013,768		1.875			07/15/15		15,511,099
		11,501,742		2.000			01/15/16		11,933,057
		8,104,716		2.500			07/15/16		8,687,243
		1,203,708		2.125			01/15/19		1,263,893
		2,370,340		1.875			07/15/19		2,439,969
		6,398,168		2.375			01/15/25		6,708,083
		16,059,036		2.000	^(a)		01/15/26		16,023,899
		6,193,936		2.375			01/15/27		6,509,443
		6,784,800		1.750			01/15/28		6,500,687
		4,793,508		3.625			04/15/28		5,925,974
		601,854		2.500			01/15/29		646,805


	TOTAL U.S. TREASURY OBLIGATIONS
	(Cost $121,783,252)							$	123,559,971




Repurchase Agreement^(b) – 1.9%


	Joint Repurchase Agreement Account II
	$	3,000,000		0.061	%		10/01/09	$	3,000,000
	Maturity Value: $3,000,005
	(Cost $3,000,000)


	TOTAL INVESTMENTS – 81.7%
	(Cost $124,783,252)							$	126,559,971


	OTHER ASSETS IN EXCESS OF LIABILITIES – 18.3%								28,282,664


	NET ASSETS – 100.0%							$	154,842,635

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


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

(b)		Joint repurchase agreement was entered into on September 30, 2009. Additional information appears on page 53.

ADDITIONAL INVESTMENT INFORMATION

FUTURES CONTRACTS — At September 30, 2009, the following futures contracts were open:


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

Eurodollars		(2	)	December 2009	$	(498,150	)	$	(2,129	)
Eurodollars		(2	)	September 2010		(493,175	)		(298	)
2 Year U.S. Treasury Notes		25		December 2009		5,424,219			9,721
5 Year U.S. Treasury Notes		(30	)	December 2009		(3,482,813	)		(14,167	)
10 Year U.S. Treasury Notes		(1	)	December 2009		(118,328	)		(555	)
30 Year U.S. Treasury Bonds		(23	)	December 2009		(2,791,625	)		(62,150	)


TOTAL								$	(69,578	)

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND

Schedule of Investments

September 30, 2009 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – 35.1%


	Collateralized Mortgage Obligations – 6.3%
	Interest Only^(a) – 0.0%
	FHLMC REMIC Series 2575, Class IB
	$	716,520		5.500	%		08/15/30	$	16,873
	FHLMC REMIC Trust Series 2586, Class NX
		622,993		4.500			08/15/16		23,453

									40,326


	Inverse Floaters^(b) – 0.0%
	FNMA REMIC Trust Series 1990-134, Class SC
		36,475		21.178			11/25/20		53,396
	GNMA Series 2001-59, Class SA
		14,509		25.541			11/16/24		21,427

									74,823


	IOette^(a) – 0.0%
	FHLMC REMIC Series 1161, Class U
		912		1,172.800			11/15/21		22,412


	Planned Amortization Class – 0.1%
	FHLMC REMIC Series 1556, Class H
		574,636		6.500			08/15/13		574,916
	FHLMC REMIC Series 1916, Class PC
		858,486		6.750			12/15/11		888,774

									1,463,690


	Regular Floater^(b) – 1.4%
	FHLMC REMIC Series 3151, Class KY^(c)
		616,087		0.000			05/15/36		610,580
	FHLMC REMIC Series 3297, Class HF
		9,693,991		0.633			04/15/37		9,429,394
	FHLMC REMIC Series 3326, Class FC
		14,093,187		0.703			06/15/37		13,715,439
	FHLMC REMIC Series 3397, Class FK
		16,156,295		1.023			12/15/37		15,958,850
	FNMA REMIC Series 1988-12, Class B^(c)
		144,198		0.000			02/25/18		124,646
	FNMA REMIC Series 2001-60, Class OF
		1,858,387		1.196			10/25/31		1,884,616
	FNMA REMIC Trust Series 2001-70, Class OF
		929,193		1.196			10/25/31		939,828

									42,663,353


	Sequential Fixed Rate – 4.8%
	FHLMC REMIC Series 108, Class G
		346,268		8.500			12/15/20		385,351
	FHLMC REMIC Series 1980, Class Z
		1,663,869		7.000			07/15/27		1,818,883
	FHLMC REMIC Series 2019, Class Z
		1,679,014		6.500			12/15/27		1,804,458
	FHLMC REMIC Series 3284, Class CA
		31,547,043		5.000			10/15/21		33,318,917
	FNMA REMIC Series 1988-12, Class A
		280,705		6.902			02/25/18		283,888
	FNMA REMIC Series 2007-36, Class AB
		44,017,811		5.000			11/25/21		46,426,193
	FNMA REMIC Series 2009-70, Class AL
		51,648,925		5.000			08/25/19		54,935,677
	FNMA REMIC Trust Series 1989-66, Class J
		541,241		7.000			09/25/19		591,256
	FNMA REMIC Trust Series 1990-16, Class E
		351,750		9.000			03/25/20		395,851
	FNMA REMIC Trust Series 1992-33, Class K
		1,040,186		8.500			03/25/18		1,072,713
	GNMA REMIC Trust Series 1995-3, Class DQ
		76,978		8.050			06/16/25		86,891

									141,120,078


	Targeted Amortization Class^(b)(c) – 0.0%
	FHLMC REMIC Trust Series 3291, Class XC
		478,654		0.000			03/15/37		460,718


	TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS							$	185,845,400


	Federal Agencies – 28.8%
	Adjustable Rate FHLMC^(b) – 3.3%
		190,228		3.762			05/01/18		192,334
		110,017		4.981			10/01/25		113,264
		782,883		4.551			09/01/33		795,624
		140,202		5.135			09/01/33		145,239
		3,984,129		5.077			09/01/34		4,123,514
		398,407		4.424			10/01/34		405,367
		236,941		4.380			11/01/34		245,434
		177,845		4.383			11/01/34		184,066
		675,396		4.387			11/01/34		688,099
		342,909		4.487			11/01/34		355,037
		1,675,709		4.681			11/01/34		1,740,377
		416,383		4.342			01/01/35		429,909
		509,668		4.338			02/01/35		525,978
		355,482		4.352			02/01/35		367,016
		464,365		4.416			02/01/35		474,586
		392,414		4.431			02/01/35		407,232
		766,768		4.433			02/01/35		784,216
		479,385		4.497			02/01/35		495,702
		210,477		4.515			02/01/35		217,157
		2,073,663		4.548			03/01/35		2,147,206
		1,347,440		4.086			04/01/35		1,393,408
		8,830,321		3.875			06/01/35		9,018,398
		3,834,487		5.112			08/01/35		3,982,398
		2,524,461		4.535			11/01/35		2,619,184
		1,679,690		5.878			05/01/36		1,782,572
		704,241		5.962			10/01/36		741,290
		631,526		5.864			11/01/36		665,473
		44,235,580		5.934			08/01/37		46,945,031
		14,373,767		6.384			09/01/37		15,254,167

									97,239,278


	Adjustable Rate FNMA^(b) – 10.7%
		203,416		3.929			11/01/17		206,473
		306,608		5.920			02/01/18		313,468
		160,803		6.133			06/01/18		165,655
		213,130		5.718			05/01/20		225,718
		96,696		4.723			01/01/23		99,645
		678,012		4.148			02/01/27		704,135

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND

Schedule of Investments (continued)

September 30, 2009 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

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

	$	7,365,409		3.352	%		08/01/29	$	7,547,393
		172,197		2.730			07/01/32		176,356
		46,103		3.380			07/01/32		47,833
		536,486		4.993			01/01/33		551,299
		29,948		4.606			03/01/33		30,956
		5,026,935		4.016			05/01/33		5,232,446
		313,181		4.665			06/01/33		319,980
		224,776		4.465			07/01/33		230,299
		582,635		3.375			08/01/33		604,253
		4,028,323		4.612			08/01/33		4,186,938
		24,800		4.092			09/01/33		25,727
		24,272		4.453			12/01/33		24,920
		3,385,833		3.327			02/01/34		3,468,583
		1,974,957		3.835			03/01/34		2,039,678
		61,500,000		4.114			04/01/34		63,575,625
		91,577		4.347			04/01/34		94,047
		2,016,855		3.731			05/01/34		2,091,071
		1,215,014		3.945			05/01/34		1,260,582
		2,144,710		2.848			06/01/34		2,196,005
		131,987		4.690			10/01/34		135,767
		2,662,690		4.739			10/01/34		2,744,020
		1,685,380		4.940			10/01/34		1,743,232
		1,184,861		3.458			11/01/34		1,209,724
		1,058,920		4.537			11/01/34		1,092,027
		46,917		4.595			11/01/34		48,259
		452,778		4.533			12/01/34		466,171
		804,624		4.699			12/01/34		826,537
		156,598		4.322			01/01/35		161,250
		574,041		4.466			01/01/35		591,832
		505,279		4.481			01/01/35		520,477
		631,873		4.541			01/01/35		651,745
		1,576,982		4.259			02/01/35		1,627,594
		306,878		4.304			02/01/35		316,593
		1,458,777		4.416			02/01/35		1,487,481
		450,818		4.587			02/01/35		465,587
		707,565		3.707			03/01/35		730,915
		617,810		4.410			03/01/35		634,816
		4,740,852		5.027			03/01/35		4,888,715
		1,134,687		3.990			04/01/35		1,172,388
		5,000,342		4.383			04/01/35		5,135,701
		4,184,862		4.675			04/01/35		4,349,620
		885,486		4.690			04/01/35		921,045
		12,804,234		4.986			04/01/35		13,208,604
		919,310		3.612			05/01/35		947,825
		1,897,966		3.669			05/01/35		1,947,343
		642,348		4.387			05/01/35		665,953
		16,436,685		4.038			07/01/35		16,952,386
		5,662,916		4.737			08/01/35		5,843,155
		4,501,728		4.710			10/01/35		4,662,268
		12,355,531		5.824			03/01/36		13,029,958
		3,652,754		3.408			04/01/36		3,720,955
		8,362,145		5.625			04/01/36		8,824,843
		7,708,064		3.420			06/01/36		7,852,783
		9,508,934		5.937			06/01/36		10,001,092
		10,099,864		3.536			07/01/36		10,314,153
		290,937		5.785			07/01/36		308,121
		11,313,565		5.951			09/01/36		11,935,839
		706,034		5.436			11/01/36		742,274
		792,093		5.648			11/01/36		834,898
		13,884,432		4.101			04/01/37		14,376,205
		15,355,791		5.820			07/01/37		16,256,171
		20,179,163		6.779			09/01/37		21,415,147
		23,757,061		5.374			11/01/38		25,018,693
		759,133		5.698			12/01/46		802,116

									317,001,363


	Adjustable Rate GNMA^(b) – 0.6%
		4,301,320		2.750			05/20/34		4,404,475
		902,953		3.500			05/20/34		930,497
		1,759,598		4.500			07/20/34		1,814,347
		1,121,234		4.625			08/20/34		1,158,313
		5,188,595		4.500			09/20/34		5,350,064
		2,574,656		4.625			09/20/34		2,657,750
		1,110,857		3.750			10/20/34		1,140,108
		1,713,758		3.750			12/20/34		1,757,489

									19,213,043


	FHLMC – 5.4%
		1,944		6.500			06/01/10		1,996
		59,545		6.500			07/01/10		61,133
		6,766		7.000			07/01/10		6,827
		160		6.500			08/01/10		164
		4,784		7.000			01/01/11		4,895
		8,528		7.000			12/01/12		8,727
		57,619		6.500			01/01/13		61,434
		43,928		6.500			04/01/13		46,836
		115,956		6.500			05/01/13		123,634
		64,693		6.500			06/01/13		68,976
		512,265		4.000			09/01/13		526,153
		34,612		6.500			10/01/13		36,904
		550,709		4.000			11/01/13		565,752
		663,595		5.000			12/01/13		705,635
		746,280		4.000			01/01/14		777,050
		648,039		4.000			05/01/14		664,831
		328,814		4.500			06/01/14		345,887
		1,241,651		4.500			10/01/14		1,306,122
		3,159,807		5.000			10/01/14		3,350,616
		766,279		4.000			11/01/14		786,135
		1,358,112		4.500			11/01/14		1,428,629
		1,000,580		4.000			03/01/15		1,019,140
		7,100,710		4.500			03/01/15		7,360,044
		517,521		4.500			08/01/15		541,509
		54,560		8.500			10/01/15		59,410
		495,699		8.000			12/01/15		531,111
		16,239		7.000			03/01/16		17,463
		6,773,303		5.000			10/01/17		7,200,889
		7,517,998		5.000			11/01/17		7,979,520
		12,320,917		5.000			01/01/18		13,089,512
		8,048,388		5.000			02/01/18		8,554,601
		29,736,186		5.000			03/01/18		31,613,257
		142,153		4.500			04/01/18		150,136
		239,279		4.500			11/01/18		252,716
		13,463,873		5.500			01/01/19		14,447,367

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

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

	$	339,862		4.500	%		05/01/19	$	357,509
		23,758,512		5.000			12/01/19		25,219,289
		6,730,012		5.500			01/01/20		7,187,968
		800,421		4.500			04/01/20		845,370
		2,936,331		5.500			05/01/20		3,136,139
		2,602,714		5.500			07/01/20		2,779,821
		529,499		4.500			08/01/20		556,993
		1,270,161		7.000			04/01/22		1,407,225
		32,958		4.500			05/01/23		34,182
		35,673		7.500			01/01/31		39,135
		20,047		6.000			06/01/36		21,309
		468,563		6.000			07/01/37		497,464
		86,843		6.000			09/01/37		92,173
		40,228		6.000			11/01/37		42,697
		84,921		6.000			09/01/38		90,079
		13,144,865		6.000			12/01/38		13,951,291

									159,953,655


	FNMA – 8.2%
		112		7.000			12/01/09		113
		3,035,108		4.000			05/01/10		3,074,571
		2,758		8.500			05/01/10		2,797
		3,364,605		4.000			06/01/10		3,384,476
		2		7.000			01/01/11		2
		624		5.500			04/01/11		665
		54		5.500			07/01/11		55
		9,994		7.000			07/01/11		10,363
		1,868,645		5.500			01/01/13		1,952,999
		455		5.500			04/01/13		486
		1,800		5.500			06/01/13		1,920
		1,168,256		4.500			08/01/13		1,205,107
		6,196,073		4.500			09/01/13		6,387,541
		3,558,639		4.000			11/01/13		3,653,476
		2,531		5.500			12/01/13		2,700
		32,791		6.000			01/01/14		35,061
		105,990		6.000			03/01/14		113,327
		18,144		5.500			04/01/14		19,293
		669,972		4.000			01/01/15		688,248
		283,349		4.500			01/01/15		293,585
		3,437		8.500			09/01/15		3,673
		186,355		8.500			10/01/15		198,663
		24,856		8.500			12/01/15		27,063
		4,592		5.500			04/01/16		4,903
		37,025		5.500			07/01/16		39,531
		5,289		5.500			11/01/16		5,647
		817,747		5.500			01/01/17		875,542
		19,596		5.500			02/01/17		21,007
		11,363		5.500			04/01/17		12,181
		54,788		5.500			10/01/17		58,721
		6,509		5.500			11/01/17		6,978
		33,908		5.500			01/01/18		36,309
		73,735		5.500			02/01/18		78,931
		262,201		5.500			03/01/18		281,086
		36,689		5.500			04/01/18		39,295
		44,667		5.500			06/01/18		47,814
		700,404		5.500			07/01/18		750,483
		310,536		5.500			08/01/18		332,662
		597,745		5.500			09/01/18		640,241
		23,124		5.500			10/01/18		24,754
		1,428,845		5.500			12/01/18		1,531,686
		2,866,553		5.500			01/01/19		3,072,949
		70,839		5.500			03/01/19		75,524
		1,464,443		5.500			05/01/19		1,569,919
		54,020,231		5.000			07/01/19		57,419,787
		2,846,169		5.000			08/01/19		3,016,775
		32,129		5.500			08/01/19		34,265
		7,538,833		5.000			09/01/19		7,989,980
		8,662,242		5.000			10/01/19		9,181,395
		10,414,938		5.000			11/01/19		11,038,880
		119,974		7.000			11/01/19		133,195
		43,983,186		5.000			12/01/19		46,699,760
		3,685,448		5.000			01/01/20		3,905,413
		1,902,545		5.000			02/01/20		2,016,549
		2,408,300		5.000			03/01/20		2,552,609
		21,831		5.500			03/01/20		23,392
		541,315		5.500			06/01/20		580,011
		187,630		5.000			07/01/20		198,874
		13,226,482		6.000			10/01/21		14,172,893
		293,661		4.500			04/01/23		304,705
		15,295,560		5.500			09/01/23		16,260,064
		2,373,510		5.500			10/01/23		2,526,675
		16,338		7.000			12/01/24		17,939
		4,575		7.000			07/01/27		5,023
		4,531		7.000			08/01/27		5,005
		6,695		7.000			10/01/28		7,388
		4,986		7.000			01/01/29		5,499
		5,473		7.000			11/01/29		6,030
		140,320		8.000			02/01/31		152,749
		4,755		7.000			04/01/31		5,227
		35,873		7.000			05/01/32		39,386
		21,492		7.000			06/01/32		23,597
		6,863		7.000			08/01/32		7,535
		2,882,219		6.000			03/01/33		3,065,731
		5,383,818		6.500			04/01/33		5,825,879
		9,041		7.000			10/01/33		9,888
		6,754		7.000			04/01/34		7,423
		40,577		6.000			12/01/34		43,142
		16,940,838		6.000			04/01/35		18,040,656
		3,130		6.000			11/01/35		3,322
		1,219,720		8.500			09/01/37		1,329,749
		3,974,608		7.500			10/01/37		4,335,267
		1,057,591		7.500			09/01/47		1,145,658

									242,699,662


	GNMA – 0.6%
		165		9.000			01/15/10		171
		13,094		9.000			07/15/12		13,997
		1,272,586		5.500			07/15/20		1,367,433
		344,608		6.000			10/15/38		367,412
		1,056,771		6.000			11/15/38		1,124,838

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND

Schedule of Investments (continued)

September 30, 2009 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

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

	$	9,277,997		6.000	%		12/15/38	$	9,834,188
		4,113,033		6.000			01/15/39		4,385,201

									17,093,240


	TOTAL FEDERAL AGENCIES							$	853,200,241


	TOTAL MORTGAGE-BACKED OBLIGATIONS
	(Cost $1,020,292,223)							$	1,039,045,641




Agency Debentures – 29.0%


	FHLB^(d)
	$	12,000,000		0.500	%		07/27/11	$	12,009,504
	FHLMC
		39,000,000		2.000			02/25/11		39,214,578
		119,300,000		2.050			03/09/11		120,082,966
		89,000,000		2.000			03/16/11		89,526,346
		21,000,000		3.500			05/05/11		21,829,143
		64,400,000		1.750			07/27/11		64,856,145
		38,900,000		1.625			08/11/11		39,092,672
		50,000,000		2.125			03/23/12		50,926,100
		27,000,000		2.500			03/23/12		27,210,951
		42,400,000		2.050			05/11/12		42,582,277
		21,300,000		1.750			06/15/12		21,412,443
		98,400,000		2.125			09/21/12		99,654,206
	FNMA
		32,800,000		2.000			03/02/11		32,938,121
		20,000,000		2.050			04/01/11		20,151,400
		38,000,000		1.750			04/15/11		38,200,876
		30,000,000		2.125			04/15/11		30,261,480
		32,000,000		1.700			04/29/11		32,223,008
		36,700,000		4.680	^(e)		06/15/11		39,065,535
		20,000,000		2.500			02/17/12		20,135,860
		17,000,000		2.150			05/04/12		17,119,204
	Small Business Administration
		175,313		7.200			06/01/17		192,112
		393,859		6.300			05/01/18		425,155
		319,783		6.300			06/01/18		345,244


	TOTAL AGENCY DEBENTURES
	(Cost $851,415,751)							$	859,455,326




Government Guarantee Obligations^(f) – 15.5%


	American Express Bank FSB

	$	25,300,000		3.150	%		12/09/11	$	26,265,625
	Bank of America Corp.
		18,000,000		2.100			04/30/12		18,252,576
	Bank of the West
		20,000,000		2.150			03/27/12		20,346,280
	Citibank NA
		26,200,000		1.875			05/07/12		26,373,496
	Citigroup Funding, Inc.
		12,400,000		2.125			07/12/12		12,536,884
		6,500,000		1.875			10/22/12		6,517,063


	Citigroup, Inc.
		19,500,000		0.859	^(b)		12/09/10		19,665,633
		65,000,000		2.125			04/30/12		65,919,945
	General Electric Capital Corp.
		22,000,000		1.800			03/11/11		22,273,284
		25,000,000		3.000			12/09/11		25,874,000
		17,000,000		0.518	^(b)		06/01/12		17,082,467
		7,000,000		2.000			09/28/12		7,039,011
		29,500,000		2.125			12/21/12		29,767,949
		20,400,000		2.625			12/28/12		20,900,840
	GMAC, Inc.
		72,200,000		2.200			12/19/12		72,970,807
	HSBC USA, Inc.
		20,200,000		3.125			12/16/11		20,977,336
	John Deere Capital Corp.
		20,700,000		2.875			06/19/12		21,387,137
	PNC Funding Corp.
		16,200,000		1.875			06/22/11		16,395,372
		7,000,000		2.300			06/22/12		7,125,678


	TOTAL GOVERNMENT GUARANTEE OBLIGATIONS
	(Cost $450,352,648)							$	457,671,383




U.S. Treasury Obligations – 8.3%


	United States Treasury Bond
	$	9,100,000		4.250	%		05/15/39	$	9,414,232
	United States Treasury Inflation Protected Securities
		78,781,215		0.875			04/15/10		78,805,795
		14,848,680		3.500			01/15/11		15,456,555
		27,321,347		1.875			07/15/13		28,226,367
		20,076,264		1.625			01/15/15		20,452,694
	United States Treasury Note
		92,500,000		1.000			09/30/11		92,572,243


	TOTAL U.S. TREASURY OBLIGATIONS
	(Cost $243,432,780)							$	244,927,886


	TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENT
	(Cost $2,565,493,402)							$	2,601,100,236




Repurchase Agreement^(g) – 10.3%


	Joint Repurchase Agreement Account II
	$	303,700,000		0.061	%		10/01/09	$	303,700,000
	Maturity Value: $303,700,515
	(Cost $303,700,000)


	TOTAL INVESTMENTS – 98.2%
	(Cost $2,869,193,402)							$	2,904,800,236


	OTHER ASSETS IN EXCESS OF LIABILITIES – 1.8%								52,811,062


	NET ASSETS – 100.0%							$	2,957,611,298

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND

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


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

(b)		Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

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

(d)		Coupon increases periodically based upon a predetermined schedule. Interest rate disclosed is that which is in effect at September 30, 2009.

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

(f)		This debt is guaranteed under the Federal Deposit Insurance Corporation’s (“FDIC”) Temporary Liquidity Guarantee Program and is backed by the full faith and credit of the United States. The expiration date of the FDIC’s guarantee is the earlier of the maturity date of the debt or June 30, 2012. Total market value of the securities amounts to $457,671,383, which represents approximately 15.5% of net assets as of September 30, 2009.

(g)		Joint repurchase agreement was entered into on September 30, 2009. Additional information appears on page 53.




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

ADDITIONAL INVESTMENT INFORMATION

FUTURES CONTRACTS — At September 30, 2009, the following futures contracts were open:


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

Eurodollars		68		December 2009	$	16,937,100		$	15,980
Eurodollars		102		June 2010		25,252,650			67,320
Eurodollars		102		September 2010		25,151,925			45,645
2 Year U.S. Treasury Notes		7,946		December 2009		1,724,033,688			7,640,507
5 Year U.S. Treasury Notes		(2,172	)	December 2009		(252,155,625	)		(1,045,792	)
10 Year U.S. Treasury Notes		555		December 2009		65,672,109			236,018
30 Year U.S. Treasury Bonds		(495	)	December 2009		(60,080,625	)		(1,208,123	)


TOTAL								$	5,751,555

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND

Schedule of Investments (continued)

September 30, 2009 (Unaudited)


ADDITIONAL INVESTMENT INFORMATION (continued)

INTEREST RATE SWAP CONTRACTS — At September 30, 2009, the Fund had outstanding swap contracts with the following terms^(a):


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

Bank of America Securities LLC	$	4,500		12/16/16	3 month LIBOR	3.250%	$	(7,089	)	$	95,220		$	(102,309	)
	��	4,700		12/16/16	3 month LIBOR	3.250		(7,404	)		82,250			(89,654	)
		4,700		12/16/16	3 month LIBOR	3.250		(7,404	)		74,640			(82,044	)
		15,500		12/16/16	3 month LIBOR	3.250		(24,417	)		384,400			(408,817	)
		31,100		12/16/16	3 month LIBOR	3.250		(48,992	)		788,385			(837,377	)
		69,500		08/14/17	4.955%	3 month LIBOR		2,354,090			—			2,354,090
		39,200		08/15/22	3 month LIBOR	5.078		(2,217,644	)		—			(2,217,644	)
		12,800		12/16/24	3 month LIBOR	3.750		124,423			828,335			(703,912	)
Deutsche Bank Securities, Inc.		158,900		12/17/12	3 month LIBOR	2.250		(635,849	)		506,285			(1,142,134	)
		1,700		12/16/16	3 month LIBOR	3.250		(2,678	)		42,759			(45,437	)
		3,900		12/16/16	3 month LIBOR	3.250		(6,143	)		98,624			(104,767	)
		13,400		12/16/16	3 month LIBOR	3.250		(21,109	)		341,968			(363,077	)
		33,300		09/05/17	4.568	3 month LIBOR		559,888			—			559,888
		19,500		09/06/22	3 month LIBOR	4.710		(540,395	)		—			(540,395	)
		4,700		12/16/24	3 month LIBOR	3.750		45,687			311,602			(265,915	)
JPMorgan Securities, Inc.		3,600		12/16/16	3 month LIBOR	3.250		(5,671	)		78,156			(83,827	)
		9,700		12/16/19	3.500	3 month LIBOR		(43,511	)		(116,063	)		72,552
		7,000		12/16/24	3 month LIBOR	3.750		68,044			480,274			(412,230	)
		11,400		12/16/24	3 month LIBOR	3.750		110,814			730,909			(620,095	)


TOTAL							$	(305,360	)	$	4,727,744		$	(5,033,104	)


(a)	Represents forward starting interest rate swaps whose effective dates of commencement of accruals and cash flows occur subsequent to September 30, 2009.

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND

Schedule of Investments

September 30, 2009 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – 38.1%


	Collateralized Mortgage Obligations – 6.3%
	Adjustable Rate Non-Agency^(a) – 0.4%
	Bank of America Mortgage Securities Series 2002-J, Class A2
	$	60,111		4.967	%		09/25/32	$	53,814
	Bear Stearns Adjustable Rate Mortgage Trust Series 2003-05, Class 1A1
		66,891		4.299			08/25/33		57,303
	Countrywide Home Loan Trust Series 2003-37, Class 1A1
		48,422		3.815			08/25/33		39,660
	CS First Boston Mortgage Securities Corp. Series 2003-AR9, Class 2A2
		859,861		3.963			03/25/33		690,916
	Sequoia Mortgage Trust Series 2004-10, Class A3A
		1,459,321		1.971			11/20/34		1,144,757

									1,986,450


	Interest Only^(b) – 0.0%
	FHLMC REMIC Trust Series 2586, Class NX
		1,115,876		4.500			08/15/16		42,007
	FNMA REMIC Trust Series 1990-145, Class B
		1,317		1,004.961			12/25/20		30,117

									72,124


	Planned Amortization Class – 0.3%
	FHLMC REMIC Trust Series 2113, Class TE
		1,141,885		6.000			01/15/14		1,202,117
	FNMA REMIC Trust Series 1993-225, Class WC
		638,019		6.500			12/25/13		667,272

									1,869,389


	Regular Floater^(a) – 1.7%
	BCAP LLC Trust Series 2006-RR1, Class CF
		412,445		0.886			11/25/36		371,277
	Collateralized Mortgage Securities Corp. Series N, Class 2
		182,292		0.993			08/25/17		182,977
	FHLMC REMIC Series 3297, Class HF
		5,415,264		0.633			04/15/37		5,267,455
	FHLMC REMIC Trust Series 1826, Class F
		134,760		0.650			09/15/21		134,536
	FHLMC REMIC Trust Series 3152, Class NX^(c)
		857,689		0.000			05/15/36		822,532
	FNMA REMIC Trust Series 1990-145, Class A
		535,763		2.513			12/25/20		532,892
	FNMA REMIC Trust Series 1997-20, Class F
		1,097,167		2.031			03/25/27		1,102,389
	FNMA REMIC Trust Series 1998-66, Class FC
		253,223		0.743			11/17/28		253,859
	FNMA REMIC Trust Series 2001-70, Class OF
		1,238,925		1.196			10/25/31		1,253,104

									9,921,021


	Sequential Fixed Rate – 3.9%
	FHLMC REMIC Series 3284, Class CA
		4,625,318		5.000			10/15/21		4,885,104
	FHLMC REMIC Trust Series 1720, Class PJ
		100,646		7.250			01/15/24		100,958
	First Nationwide Trust Series 2001-4, Class 1A1
		62,288		6.750			09/21/31		64,681
	FNMA REMIC Series 2007-36, Class AB
		6,503,316		5.000			11/25/21		6,859,137
	FNMA REMIC Series 2009-70, Class AL
		9,800,555		5.000			08/25/19		10,424,227

									22,334,107


	TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS							$	36,183,091


	Federal Agencies – 31.8%
	Adjustable Rate FHLMC^(a) – 2.5%
		67,898		2.877			08/01/16		68,930
		99,762		4.846			08/01/18		102,468
		68,888		3.931			11/01/18		70,101
		464,533		5.048			11/01/18		476,544
		16,735		3.409			02/01/19		17,067
		26,661		4.572			02/01/19		27,178
		74,478		2.633			03/01/19		75,817
		43,052		4.927			03/01/19		44,121
		75,845		3.907			06/01/19		77,048
		56,658		3.448			07/01/19		58,211
		1,025,428		4.537			11/01/19		1,051,403
		929,097		6.868			11/01/19		983,971
		85,864		3.261			01/01/20		87,449
		97,298		2.630			05/01/21		99,180
		21,677		5.975			01/01/25		22,251
		75,304		2.691			10/01/26		76,528
		851,345		5.695			08/01/28		894,699
		505,541		4.980			05/01/29		521,781
		64,041		4.186			06/01/29		66,563
		87,087		3.253			04/01/30		89,113
		102,324		4.331			06/01/30		106,353
		228,759		4.806			12/01/30		234,758
		7,254		4.631			01/01/31		7,426
		108,253		3.235			02/01/31		110,834
		29,007		3.914			05/01/31		30,135
		17,880		5.484			06/01/31		18,460
		8,852		5.029			11/01/31		9,072
		16,128		5.375			10/01/32		16,738
		3,236		3.975			02/01/33		3,298
		906,866		2.709			07/01/33		917,073
		1,456,335		4.569			09/01/33		1,489,077
		58,856		4.998			11/01/33		60,238
		699,127		5.665			05/01/35		721,601
		5,135,901		5.934			08/01/37		5,450,477

									14,085,963


	Adjustable Rate FNMA^(a) – 9.6%
		352,805		6.733			04/01/17		370,155
		45,107		4.258			08/01/17		45,163
		160,365		2.849			09/01/17		161,189
		100,769		3.082			09/01/17		101,008
		43,450		3.195			11/01/17		43,948
		52,028		3.250			12/01/17		52,627
		38,348		4.875			12/01/17		39,834
		115,407		2.925			03/01/18		115,948
		300,528		3.885			03/01/18		304,769

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND

Schedule of Investments (continued)

September 30, 2009 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

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

	$	1,219,998		3.703	%		07/01/18	$	1,237,294
		62,544		2.626			10/01/18		63,707
		130,008		2.718			10/01/18		131,031
		139,930		3.004			10/01/18		140,676
		77,442		3.191			10/01/18		78,106
		390,433		3.764			10/01/18		396,854
		7,818		3.105			11/01/18		7,955
		64,975		3.500			12/01/18		66,113
		177,698		3.700			01/01/19		180,061
		621,547		4.258			04/01/19		645,632
		33,795		5.919			04/01/19		34,235
		259,830		3.082			05/01/19		262,192
		1,230,172		3.831			05/01/19		1,247,239
		232,214		4.221			06/01/19		236,938
		243,745		4.265			06/01/19		248,326
		200,283		6.179			07/01/19		212,112
		444,202		4.160			08/01/19		452,345
		478,643		4.457			08/01/19		497,190
		1,658,324		3.879			11/01/19		1,697,484
		46,706		4.655			11/01/19		47,480
		9,265		4.625			04/01/20		9,441
		429,740		5.718			05/01/20		455,122
		523,058		3.561			06/01/20		530,004
		167,378		3.941			06/01/20		170,267
		268,387		3.864			11/01/20		273,134
		357,564		3.872			03/01/21		365,314
		114,855		2.955			09/01/21		116,919
		101,537		3.830			12/01/21		104,125
		1,417,599		3.728			01/01/22		1,451,297
		37,904		6.472			02/01/22		40,143
		123,251		4.365			05/20/22		127,595
		372,778		4.780			02/01/23		382,667
		8,662		6.219			12/01/23		9,003
		697,566		4.887			01/01/24		722,195
		640,760		3.885			03/01/24		658,452
		7,465,521		3.722			04/01/24		7,533,200
		569,342		4.394			06/20/24		590,282
		36,077		4.849			08/01/24		36,822
		172,466		5.098			01/01/25		182,652
		329,652		4.148			02/01/27		342,353
		45,439		3.977			06/01/27		46,445
		35,107		4.250			12/01/27		36,489
		66,857		4.531			01/01/28		69,489
		59,159		3.260			05/01/28		60,566
		14,998		4.065			09/01/28		15,423
		595,797		4.168			01/01/29		611,920
		36,343		2.630			06/01/29		37,183
		14,305		3.010			06/01/29		14,639
		25,199		3.419			06/01/29		25,581
		1,064,246		4.123			05/01/30		1,097,432
		5,001		4.260			02/01/31		5,205
		95,847		3.244			05/01/31		98,091
		53,653		3.155			06/01/31		54,496
		808,473		2.857			07/01/31		829,449
		93,412		2.819			08/01/31		95,675
		292,596		3.048			08/01/31		299,727
		351,616		4.881			11/01/31		360,863
		85,369		4.240			12/01/31		87,028
		157,724		3.482			01/01/32		161,394
		189,401		2.820			02/01/32		191,303
		60,071		2.890			03/01/32		61,001
		516,553		4.178			03/01/32		532,696
		23,471		4.549			03/01/32		24,399
		524,551		2.809			04/01/32		532,662
		6,414		3.125			04/01/32		6,504
		35,620		3.880			05/01/32		36,108
		129,953		2.955			07/01/32		132,127
		459,793		2.775			09/01/32		471,536
		36,312		3.000			09/01/32		37,074
		12,612		3.300			09/01/32		12,994
		35,072		3.926			09/01/32		35,848
		38,580		4.909			09/01/32		39,614
		43,332		3.581			10/01/32		44,485
		9,803		4.767			12/01/32		10,124
		223,295		4.365			01/01/33		232,050
		652,717		3.596			02/01/33		669,523
		264,039		3.458			04/01/33		272,342
		69,575		3.636			04/01/33		71,949
		1,059,020		3.083			05/01/33		1,090,767
		3,571,598		3.180			05/01/33		3,640,787
		394,575		3.324			05/01/33		403,655
		1,411,844		2.897			08/01/33		1,443,388
		14,779		4.525			08/01/33		15,120
		140,312		4.702			01/01/34		145,333
		36,927		3.920			02/01/34		37,824
		11,700,000		4.114			04/01/34		12,094,875
		1,566,881		4.383			04/01/35		1,609,297
		1,439,715		4.986			04/01/35		1,485,183
		1,418,202		3.482			10/01/35		1,437,876
		32,751		4.083			05/01/36		34,040
		7,018		3.694			11/01/38		7,185
		177,156		2.451			06/01/40		177,834
		602,593		3.346			07/01/40		617,112
		24,297		2.251			02/01/41		24,293

									54,904,601


	Adjustable Rate GNMA^(a) – 2.0%
		9,910,650		4.500			08/20/34		10,218,871
		1,280,599		4.625			08/20/34		1,322,948

									11,541,819


	FHLMC – 6.0%
		130,573		6.500			03/01/13		139,218
		187,100		6.500			04/01/13		199,487
		84,014		6.500			05/01/13		89,576
		198,860		6.500			06/01/13		212,027
		442,396		5.000			12/01/13		470,423
		497,520		4.000			01/01/14		518,034
		1,432,571		8.000			12/01/15		1,534,910
		280,230		6.000			05/01/17		300,486
		1,335,668		5.000			10/01/17		1,419,986
		1,482,519		5.000			11/01/17		1,573,529
		2,429,635		5.000			01/01/18		2,581,199

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND


	Principal		Interest			Maturity
	Amount		Rate			Date			Value

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

	$	1,587,110		5.000	%		02/01/18		$	1,686,933
		5,863,855		5.000			03/01/18			6,234,007
		2,896,666		5.500			01/01/19			3,108,258
		4,638,567		5.000			12/01/19			4,923,766
		1,359,627		5.500			01/01/20			1,452,146
		593,211		5.500			05/01/20			633,577
		525,812		5.500			07/01/20			561,592
		439,337		7.000			04/01/21			488,233
		224,897		7.000			08/01/21			249,927
		1,974,516		7.000			03/01/22			2,187,588
		599,152		7.000			05/01/22			663,807
		2,348,055		7.000			06/01/22			2,601,436
		32,958		4.500			05/01/23			34,182
		22,996		7.000			12/01/25			25,252

										33,889,579


	FNMA – 11.7%
		2,499,500		4.000			05/01/10			2,532,000
		2,968,769		4.000			06/01/10			2,986,302
		370,894		6.000			09/01/11			389,113
		573,446		6.500			04/01/12			597,390
		1,043,557		6.000			05/01/12			1,109,798
		265,503		6.500			05/01/12			277,675
		825,342		6.000			06/01/12			877,760
		298,645		6.500			06/01/12			312,622
		4,567,777		5.500			01/01/13			4,773,977
		1,168,256		4.500			08/01/13			1,205,107
		5,126,531		4.500			09/01/13			5,284,939
		638,423		8.000			01/01/16			693,430
		682,296		7.000			03/01/17			736,018
		186,276		7.000			05/01/17			201,005
		5,884,465		5.500			03/01/18			6,305,476
		567,808		5.500			04/01/18			608,353
		10,139,274		5.000			07/01/19			10,777,399
		496,595		5.000			08/01/19			526,334
		1,460,377		5.000			09/01/19			1,547,739
		1,713,887		5.000			10/01/19			1,816,588
		2,160,844		5.000			11/01/19			2,290,281
		2,444,582		5.000			12/01/19			2,590,951
		777,050		5.000			01/01/20			823,418
		417,865		5.000			02/01/20			442,903
		533,160		5.000			03/01/20			565,107
		35,824		5.000			07/01/20			37,971
		221,579		7.000			07/01/21			245,742
		380,893		7.000			11/01/21			422,429
		123,648		7.000			12/01/21			137,132
		280,483		7.000			01/01/22			311,068
		69,715		7.000			02/01/22			77,317
		765,577		4.500			04/01/23			794,368
		215,151		7.000			01/01/28			236,675
		225,645		6.500			04/01/33			244,173
		37,124		5.500			02/01/36			38,891
		347,044		5.000			01/01/37			359,259
		35,844		5.500			01/01/38			37,565
		451,698		5.000			03/01/38			467,069
		737,856		5.500			06/01/38			772,469
		1,000,000		5.500			TBA-30yr	^(d)		1,045,938
		11,000,000		6.000			TBA-30yr	^(d)		11,488,125

										66,987,876


	GNMA – 0.0%
		44,161		7.000			12/15/25			47,801
		110,231		7.000			04/15/26			121,397

										169,198


	TOTAL FEDERAL AGENCIES								$	181,579,036


	TOTAL MORTGAGE-BACKED OBLIGATIONS
	(Cost $215,634,745)								$	217,762,127




Agency Debentures – 19.3%


	FHLB
	$	7,900,000		3.250	%		03/11/11		$	8,186,739
		11,100,000		0.500	^(e)		07/27/11			11,108,791
	FHLMC
		43,800,000		2.000	^(f)		03/16/11			44,059,033
		5,400,000		1.750			07/27/11			5,438,248
		4,300,000		2.125			03/23/12			4,379,645
		2,600,000		1.750			06/15/12			2,613,725
		5,000,000		5.125			10/23/12			5,014,055
	FNMA
		5,000,000		2.050			04/01/11			5,037,850
		2,500,000		1.750			04/15/11			2,513,216
		17,000,000		2.500			03/02/12			17,127,653
		5,000,000		5.200			10/09/18			5,005,210


	TOTAL AGENCY DEBENTURES
	(Cost $110,028,941)								$	110,484,165




Asset-Backed Securities – 3.8%


	Auto – 2.7%
	Bank of America Auto Trust Series 2009-1A, Class A2^(g)
	$	5,250,000		1.700	%		12/15/11		$	5,281,323
	Ford Credit Auto Owner Trust Series 2009-B, Class A3
		10,000,000		2.790			08/15/13			10,210,995

										15,492,318


	Credit Card^(a) – 1.1%
	Chase Issuance Trust Series 2009-A5, Class A5
		6,000,000		1.043			06/15/12			6,019,124


	TOTAL ASSET-BACKED SECURITIES
	(Cost $21,440,557)								$	21,511,442




Government Guarantee Obligations^(h) – 7.2%


	Citibank NA
	$	3,000,000		1.875	%		05/07/12		$	3,019,866
	Citigroup Funding, Inc.
		8,600,000		0.821	^(a)		04/30/12			8,671,595

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND

Schedule of Investments (continued)

September 30, 2009 (Unaudited)


	Principal			Interest			Maturity
	Amount			Rate			Date		Value

Government Guarantee Obligations^(h) – (continued)
	Citigroup Funding, Inc. – (continued)

	$	3,600,000			1.875	%		10/22/12	$	3,609,450
		2,700,000			2.250			12/10/12		2,736,353
	General Electric Capital Corp.
		3,000,000			1.800			03/11/11		3,037,266
		8,600,000			0.518	^(a)		06/01/12		8,641,719
		2,100,000			2.000			09/28/12		2,111,703
		2,000,000			0.292	^(a)		12/21/12		1,999,362
		6,000,000			2.625			12/28/12		6,147,306
	GMAC, Inc.
		1,200,000	��		2.200			12/19/12		1,212,811


	TOTAL GOVERNMENT GUARANTEE OBLIGATIONS
	(Cost $40,987,117)								$	41,187,431




U.S. Treasury Obligations – 4.8%


	United States Treasury Inflation Protected Securities
	$	11,754,635			3.500	%		01/15/11	$	12,240,007
		5,745,691			1.875			07/15/13		5,936,017
	United States Treasury Notes
		8,500,000			3.250			05/31/16		8,707,850
	United States Treasury Principal-Only STRIPS⁽ⁱ⁾
		1,500,000			0.000			11/15/26		726,659


	TOTAL U.S. TREASURY OBLIGATIONS
	(Cost $27,272,095)								$	27,610,533


	TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENT
	(Cost $415,363,455)								$	418,555,698




Repurchase Agreement^(j) – 32.8%


	Joint Repurchase Agreement Account II
	$	187,400,000			0.061	%		10/01/09	$	187,400,000
	Maturity Value: $187,400,318
	(Cost $187,400,000)


	TOTAL INVESTMENTS – 106.0%
	(Cost $602,763,455)								$	605,955,698


	LIABILITIES IN EXCESS OF OTHER ASSETS – (6.0)%									(34,563,597	)


	NET ASSETS – 100.0%								$	571,392,101

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, 2009.

(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)		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 $12,534,063, which represents approximately 2.2% of net assets as of September 30, 2009.

(e)		Coupon increases periodically based upon a predetermined schedule. Interest rate disclosed is that which is in effect at September 30, 2009.

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

(g)		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 $5,281,323, which represents approximately 0.9% of net assets as of September 30, 2009.

(h)		This debt is guaranteed under the Federal Deposit Insurance Corporation’s (“FDIC”) Temporary Liquidity Guarantee Program and is backed by the full faith and credit of the United States. The expiration date of the FDIC’s guarantee is the earlier of the maturity date of the debt or June 30, 2012. Total market value of the securities amounts to $41,187,431, which represents approximately 7.2% of net assets as of September 30, 2009.

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

(j)		Joint repurchase agreement was entered into on September 30, 2009. Additional information appears on page 53.




Investment Abbreviations:
FHLB	—	Federal Home Loan Bank
FHLMC	—	Federal Home Loan Mortgage Corp.
FNMA	—	Federal National Mortgage Association
GNMA	—	Government National Mortgage Association
LIBOR	—	London Interbank Offered Rate
REMIC	—	Real Estate Mortgage Investment Conduit
STRIPS	—	Separate Trading of Registered Interest and Principal of Securities

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND

ADDITIONAL INVESTMENT INFORMATION

FUTURES CONTRACTS — At September 30, 2009, the following futures contracts were open:


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

Eurodollars		104		November 2009	$	25,912,900		$	11,575
Eurodollars		264		December 2009		65,755,800			254,297
Eurodollars		56		March 2010		13,912,500			57,460
Eurodollars		61		June 2010		15,102,075			64,360
Eurodollars		62		September 2010		15,288,425			91,718
Eurodollars		(28	)	December 2010		(6,877,150	)		(5,620	)
Eurodollars		(26	)	March 2011		(6,363,500	)		(34,840	)
2 Year U.S. Treasury Notes		48		December 2009		10,414,500			46,711
5 Year U.S. Treasury Notes		(538	)	December 2009		(62,458,438	)		(424,215	)
10 Year U.S. Treasury Notes		105		December 2009		12,424,453			189,435
30 Year U.S. Treasury Bonds		(33	)	December 2009		(4,005,375	)		(110,326	)


TOTAL								$	140,555

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND

Schedule of Investments (continued)

September 30, 2009 (Unaudited)


ADDITIONAL INVESTMENT INFORMATION (continued)

INTEREST RATE SWAP CONTRACTS — At September 30, 2009, the Fund had outstanding swap contracts with the following terms^(a):


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

Banc of America Securities LLC	$	800		12/16/16	3 month LIBOR	3.250%	$	(1,260	)	$	16,928		$	(18,188	)
		900		12/16/16	3 month LIBOR	3.250		(1,418	)		15,750			(17,168	)
		900		12/16/16	3 month LIBOR	3.250		(1,418	)		14,293			(15,711	)
		2,700		12/16/16	3 month LIBOR	3.250		(4,253	)		66,960			(71,213	)
		5,400		12/16/16	3 month LIBOR	3.250		(8,507	)		136,890			(145,397	)
		12,500		08/14/17	4.955%	3 month LIBOR		423,398			—			423,398
		7,000		08/15/22	3 month LIBOR	5.078		(396,008	)		—			(396,008	)
		200		12/17/29	3 month LIBOR	4.000		(2,211	)		5,313			(7,524	)
		1,600		12/17/29	3 month LIBOR	4.000		(17,689	)		107,878			(125,567	)
Credit Suisse First Boston Corp.		2,900		12/17/29	3 month LIBOR	4.000		(32,062	)		81,808			(113,870	)
Deutsche Bank Securities, Inc.		300		12/16/16	3 month LIBOR	3.250		(473	)		7,545			(8,018	)
		700		12/16/16	3 month LIBOR	3.250		(1,102	)		17,702			(18,804	)
		2,300		12/16/16	3 month LIBOR	3.250		(3,623	)		58,696			(62,319	)
		6,300		09/05/17	4.568	3 month LIBOR		105,925			—			105,925
		3,600		12/16/19	3 month LIBOR	3.500		16,148			68,922			(52,774	)
		3,700		09/06/22	3 month LIBOR	4.710		(102,536	)		—			(102,536	)
		500		12/17/29	3 month LIBOR	4.000		(5,528	)		11,573			(17,101	)
JPMorgan Securities, Inc.		700		12/16/16	3 month LIBOR	3.250		(1,103	)		15,197			(16,300	)
		9,700		12/16/16	3 month LIBOR	3.250		(15,281	)		(9,326	)		(5,955	)
		100		12/17/29	3 month LIBOR	4.000		(1,106	)		(1,773	)		667


TOTAL							$	(50,107	)	$	614,356		$	(664,463	)


(a)	Represents forward starting interest rate swaps whose effective dates of commencement of accrual and cash flows occur subsequent to September 30, 2009.

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

ADDITIONAL INVESTMENT INFORMATION (continued)

JOINT REPURCHASE AGREEMENT ACCOUNT II — At September 30, 2009, the Funds had undivided interests in the Joint Repurchase Agreement Account II, as follows:


Fund	Principal Amount

Enhanced Income	$	71,000,000

Government Income		29,100,000

Inflation Protected Securities		3,000,000

Short Duration Government		303,700,000

Ultra-Short Duration Government		187,400,000

REPURCHASE AGREEMENTS


	Principal		Interest			Maturity		Maturity
Counterparty	Amount		Rate			Date		Value

Banc of America Securities LLC	$	1,033,500,000		0.08	%		10/01/09	$	1,033,502,297

Barclays Capital, Inc.		800,000,000		0.03			10/01/09		800,000,667

Barclays Capital, Inc.		2,250,000,000		0.04			10/01/09		2,250,002,500

Citigroup Global Markets, Inc.		1,500,000,000		0.06			10/01/09		1,500,002,500

Credit Suisse Securities (USA) LLC		1,000,000,000		0.03			10/01/09		1,000,000,833

Credit Suisse Securities (USA) LLC		1,950,000,000		0.07			10/01/09		1,950,003,792

Deutsche Bank Securities, Inc.		300,000,000		0.04			10/01/09		300,000,333

Deutsche Bank Securities, Inc.		1,150,000,000		0.08			10/01/09		1,150,002,556

JPMorgan Securities		500,000,000		0.04			10/01/09		500,000,556

JPMorgan Securities		4,121,500,000		0.07			10/01/09		4,121,508,014

Merrill Lynch & Co., Inc.		950,000,000		0.07			10/01/09		950,001,847

Morgan Stanley & Co.		2,160,300,000		0.05			10/01/09		2,160,303,000

RBS Securities, Inc.		500,000,000		0.07			10/01/09		500,000,972

UBS Securities LLC		1,295,000,000		0.08			10/01/09		1,295,002,878

Wachovia Capital Markets		550,000,000		0.07			10/01/09		550,001,069

TOTAL								$	20,060,333,814

At September 30, 2009, the Joint Repurchase Agreement Account II was fully collateralized by:


Issuer	Interest Rates		Maturity Dates

Federal Farm Credit Bank		3.800% to 6.900%		11/04/09 to 08/03/37

Federal Home Loan Bank		0.820 to 6.640		10/02/09 to 03/14/36

Federal Home Loan Mortgage Corp.		0.000 to 15.000		10/13/09 to 10/01/39

Federal Home Loan Mortgage Corp. Interest-Only Stripped Securities		0.000		01/15/18

Federal National Mortgage Association		0.000 to 16.000		10/01/09 to 07/01/49

Federal National Mortgage Association Interest-Only Stripped Securities		0.000		05/15/20

Government National Mortgage Association		4.500 to 6.000		07/15/35 to 09/15/39

Tennessee Valley Authority Interest-Only Stripped Security		0.000		11/01/10

U.S. Treasury Inflation Protected Securities		0.625 to 4.250		01/15/10 to 01/15/15

U.S. Treasury Interest-Only Stripped Securities		0.000		11/30/09 to 08/15/19

U.S. Treasury Notes		1.750 to 7.250		08/31/11 to 02/15/18

U.S. Treasury Principal-Only Stripped Securities		0.000		11/15/09 to 08/15/17

The aggregate market value of the collateral, including accrued interest, was $20,558,837,843.

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Statements of Assets and Liabilities

September 30, 2009 (Unaudited)


	Enhanced
	Income Fund

Assets:

Investments in securities, at value (identified cost $760,989,284, $961,395,391, $121,783,252, $2,565,493,402 and $415,363,455, respectively)	$	767,242,524
Repurchase agreement, at value which equals cost		71,000,000
Cash		95,273
Receivables:
Fund shares sold		9,041,639
Interest		4,891,195
Due from broker — swap collateral		1,969,500
Investment securities sold		1,599,496
Reimbursement from investment adviser		15,963
Due from broker — variation margin		—
Swap contracts, at value (includes upfront payments made (received) of $0, $2,167,589, $0, $2,351,120 and $68,922, respectively)		—
Other assets		455


Total assets		855,856,045





Liabilities:

Due to Custodian		—
Payables:
Investment securities purchased		12,542,039
Fund shares redeemed		5,782,049
Swap contracts, at value (includes upfront payments made (received) of $0, $1,016,649, $0, $2,376,624 and $545,434, respectively)		1,537,263
Amounts owed to affiliates		219,141
Due to broker — variation margin		179,375
Income distribution		147,169
Due to broker — swap collateral		—
Forward sale contracts, at value (proceeds receivable of $6,745,885 for Government Income)		—
Accrued expenses		96,169


Total liabilities		20,503,205





Net Assets:

Paid-in capital		908,677,474
Accumulated undistributed (distribution in excess of) net investment income		1,077,705
Accumulated net realized gain (loss) from investment, futures and swap transactions		(77,875,909	)
Net unrealized gain on investments, futures and swaps		3,473,570


NET ASSETS	$	835,352,840



Net Assets:
Class A	$	219,358,099
Class B		1,776,144
Class C		—
Institutional		611,313,312
Administration		2,905,285
Service		—
Class IR		—
Class R		—



Total Net Assets	$	835,352,840


Shares Outstanding $0.001 par value (unlimited shares authorized):
Class A		22,705,069
Class B		184,139
Class C		—
Institutional		63,342,590
Administration		300,054
Service		—
Class IR		—
Class R		—


Net asset value, offering and redemption price per share:^(a)
Class A		$9.66
Class B		9.65
Class C		—
Institutional		9.65
Administration		9.68
Service		—
Class IR		—
Class R		—


(a)		Maximum public offering price per share for Class A shares of the Enhanced Income, Short Duration Government and Ultra-Short Duration Government Funds (NAV per share multiplied by 1.0152), Government Income and Inflation Protected Securities Funds (NAV per share multiplied by 1.0390) is $9.81, $10.63, $8.97, $15.96 and $11.23, respectively. At redemption, Class B and Class C shares may be subject to a contingent deferred sales charge, assessed on the amount equal to the lesser of the current net asset value or the original purchase price of the shares.

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


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





$	984,494,067	$	123,559,971		$	2,601,100,236	$	418,555,698
	29,100,000		3,000,000			303,700,000		187,400,000
	941,243		17,783			—		91,062

	1,676,154		27,317,073			144,021,147		11,267,731
	4,620,550		615,881			11,937,672		1,570,491
	4,850,000		—			—		—
	125,442,195		625,897			8,004,605		2,359,845
	94,903		4,284			308,537		25,419
	23,838		6,102			1,380,467		—
	2,436,784		—			3,262,946		545,471
	61,174		222			45,676		626


	1,153,740,908		155,147,213			3,073,761,286		621,816,343







	—		—			726,513		—

	157,482,601		—			93,769,816		46,001,742
	3,765,301		129,451			14,468,847		3,100,440
	7,481,473		—			3,568,306		595,578
	694,687		57,570			1,620,042		259,985
	—		—			—		36,759
	539,140		29,526			1,090,258		325,996
	—		—			650,424		—
	6,834,122		—			—		—
	254,900		88,031			255,782		103,742


	177,052,224		304,578			116,149,988		50,424,242







	949,965,315		153,114,406			2,881,348,985		742,022,503
	432,500		658,979			221,087		(1,447,969	)
	9,001,785		(637,891	)		39,715,941		(171,850,768	)
	17,289,084		1,707,141			36,325,285		2,668,335


$	976,688,684	$	154,842,635		$	2,957,611,298	$	571,392,101




$	549,086,266	$	62,498,170		$	1,233,612,191	$	266,001,934
	37,871,147		—			5,092,446		—
	38,867,634		13,618,379			159,938,070		—
	252,051,157		78,604,671			1,422,316,860		302,355,357
	—		—			—		—
	97,370,100		—			135,527,619		2,777,842
	82,733		23,544			1,124,112		256,968
	1,359,647		97,871			—		—



$	976,688,684	$	154,842,635		$	2,957,611,298	$	571,392,101



	35,737,661		5,783,306			117,805,093		30,080,841
	2,464,920		—			488,156		—
	2,529,848		1,256,317			15,371,553		—
	16,427,858		7,252,398			136,260,489		34,175,302
	—		—			—		—
	6,352,114		—			13,001,503		312,595
	5,387		2,175			107,320		29,080
	88,576		9,039			—		—



	$15.36		$10.81			$10.47		$8.84
	15.36		—			10.43		—
	15.36		10.84			10.40		—
	15.34		10.84			10.44		8.85
	—		—			—		—
	15.33		—			10.42		8.89
	15.36		10.82			10.47		8.84
	15.35		10.83			—		—

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Statements of Operations

For the Six Months Ended September 30, 2009 (Unaudited)


	Enhanced
	Income Fund


Investment income:

Interest	$	6,433,006





Expenses:

Management fees		704,603
Transfer Agent fees^(a)		171,440
Distribution and Service fees^(a)		170,706
Custody and accounting fees		68,054
Professional fees		45,392
Registration fees		35,771
Printing fees		16,642
Trustee fees		8,400
Administration share fees		3,050
Service share fees — Shareholder Administration Plan		—
Service share fees — Service Plan		—
Other		20,640


Total expenses		1,244,698


Less — expense reductions		(204,213	)


Net expenses		1,040,485


NET INVESTMENT INCOME		5,392,521





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

Net realized gain (loss) from:
Investment transactions		(13,018	)
Futures transactions		(672,695	)
Swap contracts		(272,544	)
Net change in unrealized gain (loss) on:
Investments		8,752,557
Futures		(820,556	)
Swap contracts		271,878


Net realized and unrealized gain from investment, futures and swap transactions		7,245,622


NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	12,638,143


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


	Distribution and Service Fees								Transfer Agent Fees
Fund	Class A		Class B		Class C		Class R		Class A		Class B		Class C		Institutional		Administration		Service		Class IR		Class R
Enhanced Income	$	160,517	$	10,189	$	—	$	—	$	83,469	$	1,325	$	—	$	86,158	$	488	$	—	$	—	$	—
Government Income		709,214		212,237		203,221		1,135		368,791		27,591		26,419		50,478		—		18,712		20		295
Inflation Protected Securities		66,088		—		45,253		63		34,365		—		5,883		10,019		—		—		9		17
Short Duration Government		1,340,135		27,625		709,989		—		696,870		3,591		92,299		225,212		—		20,412		264		—
Ultra-Short Duration Government		204,550		—		—		—		106,366		—		—		39,615		—		579		50		—

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


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




$	19,709,601		$	2,968,273		$	34,771,093		$	4,547,730







	2,691,145			184,892			5,714,755			729,380
	492,306			50,293			1,038,648			146,610
	1,125,807			111,404			2,077,749			204,550
	225,764			18,040			169,599			68,556
	61,625			66,653			50,201			49,125
	60,072			36,869			188,479			49,238
	18,167			20,526			29,805			14,381
	8,400			8,400			8,400			8,400
	—			—			—			—
	116,949			—			127,573			3,621
	116,949			—			127,573			3,621
	74,626			12,500			145,819			34,091


	4,991,810			509,577			9,678,601			1,311,573


	(425,600	)		(183,160	)		(542,302	)		(123,887	)


	4,566,210			326,417			9,136,299			1,187,686


	15,143,391			2,641,856			25,634,794			3,360,044








	(4,335,711	)		(116,397	)		9,808,383			(4,856,055	)
	1,677,868			130,546			2,592,498			(945,955	)
	4,239,311			155,294			6,114,431			1,432,946

	17,782,933			1,920,322			11,247,019			9,109,787
	144,970			(46,903	)		115,703			411,786
	(5,484,708	)		(96,563	)		(4,594,857	)		(656,442	)


	14,024,663			1,946,299			25,283,177			4,496,067


$	29,168,054		$	4,588,155		$	50,917,971		$	7,856,111

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Statements of Changes in Net Assets


	Enhanced Income Fund
	For the
	Six Months Ended			For the
	September 30, 2009			Fiscal Year Ended
	(Unaudited)			March 31, 2009


From operations:

Net investment income	$	5,392,521		$	7,795,203
Net realized gain (loss) from investment, futures and swap transactions		(958,257	)		2,653,798
Net change in unrealized gain (loss) on investments, futures and swaps		8,203,879			(6,522,755	)


Net increase (decrease) in net assets resulting from operations		12,638,143			3,926,246





Distributions to shareholders:

From net investment income
Class A Shares		(1,137,496	)		(1,345,849	)
Class B Shares		(13,507	)		(76,716	)
Class C Shares		—			—
Institutional Shares		(4,723,623	)		(7,465,080	)
Administration Shares		(23,946	)		(9,412	)
Service Shares		—			—
Class IR Shares		—			—
Class R Shares		—			—
From net realized gains
Class A Shares		—			—
Class B Shares		—			—
Class C Shares		—			—
Institutional Shares		—			—
Service Shares		—			—
Class IR Shares		—			—
Class R Shares		—			—
From capital
Class A Shares		—			—
Class C Shares		—			—
Institutional Shares		—			—
Class IR Shares		—			—
Class R Shares		—			—


Total distributions to shareholders		(5,898,572	)		(8,897,057	)





From share transactions:

Net proceeds from sales of shares		773,549,818			211,580,167
Reinvestment of distributions		5,154,486			8,302,517
Cost of shares redeemed		(223,242,806	)		(214,112,871	)


Net increase (decrease) in net assets resulting from share transactions		555,461,498			5,769,813


TOTAL INCREASE (DECREASE)		562,201,069			799,002





Net assets:

Beginning of period		273,151,771			272,352,769


End of period	$	835,352,840		$	273,151,771


Accumulated undistributed (distribution in excess of) net investment income	$	1,077,705		$	1,583,756

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


Government Income Fund						Inflation Protected Securities Fund
For the						For the
Six Months Ended			For the			Six Months Ended			For the
September 30, 2009			Fiscal Year Ended			September 30, 2009			Fiscal Year Ended
(Unaudited)			March 31, 2009			(Unaudited)			March 31, 2009




$	15,143,391		$	36,692,347		$	2,641,856		$	49,077
	1,581,468			9,783,089			169,443			(714,259	)
	12,443,195			513,077			1,776,856			(1,207,089	)


	29,168,054			46,988,513			4,588,155			(1,872,271	)








	(8,590,257	)		(20,638,104	)		(435,418	)		(369,445	)
	(486,579	)		(1,536,115	)		—			—
	(458,610	)		(1,061,706	)		(38,747	)		(39,150	)
	(4,250,331	)		(12,162,319	)		(501,412	)		(341,643	)
	—			—			—			—
	(1,342,097	)		(2,889,031	)		—			—
	(451	)		(437	)		(126	)		(101	)
	(6,206	)		(561	)		(158	)		(81	)

	—			(2,110,344	)		—			(68,941	)
	—			(194,033	)		—			—
	—			(142,399	)		—			(10,434	)
	—			(1,069,133	)		—			(61,913	)
	—			(343,899	)		—			—
	—			(42	)		—			(16	)
	—			(42	)		—			(16	)

	—			—			—			(544,805	)
	—			—			—			(57,733	)
	—			—			—			(503,807	)
	—			—			—			(148	)
	—			—			—			(122	)


	(15,134,531	)		(42,148,165	)		(975,861	)		(1,998,355	)







	210,488,801			578,861,324			67,747,115			110,380,565
	11,188,562			30,338,019			714,569			1,731,429
	(257,123,071	)		(568,139,238	)		(16,703,342	)		(43,742,102	)


	(35,445,708	)		41,060,105			51,758,342			68,369,892


	(21,412,185	)		45,900,453			55,370,636			64,499,266







	998,100,869			952,200,416			99,471,999			34,972,733


$	976,688,684		$	998,100,869		$	154,842,635		$	99,471,999


$	432,500		$	423,640		$	658,979		$	(1,007,016	)

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Statements of Changes in Net Assets


	Short Duration Government Fund
	For the
	Six Months Ended			For the
	September 30, 2009			Fiscal Year Ended
	(Unaudited)			March 31, 2009


From operations:

Net investment income	$	25,634,794		$	41,595,326
Net realized gain (loss) from investment, futures and swap transactions		18,515,312			37,375,726
Net change in unrealized gain on investments, futures and swaps		6,767,865			14,918,220


Net increase (decrease) in net assets resulting from operations		50,917,971			93,889,272





Distributions to shareholders:

From net investment income
Class A Shares		(10,592,396	)		(16,596,736	)
Class B Shares		(38,390	)		(172,248	)
Class C Shares		(882,625	)		(1,397,742	)
Institutional Shares		(13,090,130	)		(25,757,718	)
Service Shares		(932,253	)		(2,388,586	)
Class IR Shares		(4,584	)		(475	)
From net realized gains
Class A Shares		—			(3,468,685	)
Class B Shares		—			(30,733	)
Class C Shares		—			(414,271	)
Institutional Shares		—			(3,777,576	)
Service Shares		—			(588,692	)
Class IR Shares		—			(52	)


Total distributions to shareholders		(25,540,378	)		(54,593,514	)





From share transactions:

Net proceeds from sales of shares		1,913,102,359			1,860,917,698
Reinvestment of distributions		20,342,699			46,918,483
Cost of shares redeemed		(999,708,355	)		(1,161,501,067	)


Net increase (decrease) in net assets resulting from share transactions		933,736,703			746,335,114


TOTAL INCREASE (DECREASE)		959,114,296			785,630,872





Net assets:

Beginning of period		1,998,497,002			1,212,866,130


End of period	$	2,957,611,298		$	1,998,497,002


Accumulated undistributed (distribution in excess of) net investment income	$	221,087		$	126,671

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


Ultra-Short Duration Government Fund
For the
Six Months Ended			For the
September 30, 2009			Fiscal Year Ended
(Unaudited)			March 31, 2009





$	3,360,044		$	13,944,276
	(4,369,064	)		(18,188,231	)
	8,865,131			3,143,832


	7,856,111			(1,100,123	)








	(2,320,854	)		(4,034,427	)
	—			—
	—			—
	(3,190,767	)		(11,479,737	)
	(41,602	)		(119,952	)
	(1,007	)		(411	)

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


	(5,554,230	)		(15,634,527	)







	471,928,264			291,613,112
	3,521,789			9,888,428
	(149,030,614	)		(558,366,402	)


	326,419,439			(256,864,862	)


	328,721,320			(273,599,512	)







	242,670,781			516,270,293


$	571,392,101		$	242,670,781


$	(1,447,969	)	$	746,217

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements

September 30, 2009 (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 table lists those series of the Trust that are included in this report (collectively, the “Funds” or individually a “Fund”), along with their corresponding share classes and respective diversification status under the Act:


		Diversified/
Fund	Share Classes Offered	Non-diversified

Enhanced Income	A, B, Institutional and Administration		Diversified


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


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


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


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

Class A Shares of the Enhanced Income, Government Income, Inflation Protected Securities, Short Duration Government and Ultra-Short Duration Government Funds are sold with front-end sales charges of up to 1.50%, 3.75%, 3.75%, 1.50% and 1.50%, respectively. Prior to July 29, 2009, the maximum Class A front-end sales charges for the Government Income, Inflation Protected Securities and Short Duration Government Funds were 4.50%, 4.50% and 2.00%, respectively. Class B Shares of the Funds are sold with a contingent deferred sales charge that declines from 5.00% to zero, depending upon the period of time the shares are held. Effective November 2, 2009, the Funds’ Class B Shares will no longer be available for purchase by new or existing shareholders (although current Class B shareholders may continue to reinvest income and capital gains distributions into Class B Shares, and Class B shareholders may continue to exchange their shares for Class B Shares of certain other Goldman Sachs Funds). Class C Shares of the Funds are sold with a contingent deferred sales charge of 1.00% during the first 12 months. Institutional, Administration, Service, Class IR and Class R Shares of the Funds are not subject to a sales charge. Goldman, Sachs & Co. (“Goldman Sachs” or the “Distributor”) serves as Distributor of the shares of the Funds pursuant to a Distribution Agreement. Goldman Sachs may retain a portion of such sales charges it receives as Distributor.

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

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 accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that may affect the amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.

A. FASB Financial Accounting Standards Codification — In July 2009, the Financial Accounting Standards Board (“FASB”) launched its “Financial Accounting Standards Codification” (the “Codification”) as the single source of GAAP. While the Codification does not change GAAP, it introduces a new structure to the accounting literature and changes references to accounting standards and other authoritative accounting guidance that have been reflected in the accompanying Notes to Financial Statements.

B. Investment Valuation — The investment valuation policy of the Funds is to value investments at market value. Debt securities for which market quotations are readily available are valued on the basis of quotations furnished by an independent pricing service approved by the trustees or provided by securities dealers. The pricing services may use valuation models or matrix pricing, which consider (i) yield or price with respect to bonds that are considered comparable in characteristics such

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

as rating, interest rate and maturity date or (ii) quotations from bond dealers, 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 trustees. Short-term debt obligations that mature in sixty days or less and that do not exhibit signs of credit deterioration are valued at amortized cost, which approximates market value.

Investments in equity securities and investment companies traded on a United States (“U.S.”) securities exchange or the NASDAQ system are valued daily at their last sale price or official closing price on the principal exchange or system on which they are traded. If no sale occurs, such securities and investment companies are valued at the last bid price for long positions and at the last ask price for short positions. Unlisted equity securities for which market quotations are available are valued at the last sale price on the valuation date, or if no sale occurs, at the last bid price. In the absence of market quotations, broker quotes will be utilized or the security will be fair valued. Investments in investment companies (other than those that are exchange traded) are valued at the net asset value per share (“NAV”) on the valuation date.

GSAM, consistent with its procedures and applicable regulatory guidance, may 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.

C. Security and Fund Share Transactions, and Investment Income — Security and Fund share transactions are reflected for financial reporting purposes as of the trade date which may cause the NAV as stated in the accompanying financial statements to be different than the NAV applied to share transactions. 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 included in interest income in the accompanying Statements of Operations. In addition, it is the Funds’ policy to accrue for foreign capital gains taxes, if applicable, on certain foreign securities held by the Funds. An estimated foreign capital gains tax is recorded daily on net unrealized gains on these securities and is payable upon the sale of such securities when a gain is realized.

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.

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

E. 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 (mutual funds) and to distribute each year substantially all of its investment company taxable income and capital gains to its shareholders.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2009 (Unaudited)


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Accordingly, no federal income 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/Paid		Declared/Paid

All Funds		Daily/Monthly		Annually

Net capital losses are carried forward to future fiscal 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 gains 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. Financial statements are adjusted for permanent book/tax differences to reflect the appropriate tax character, and are not adjusted for temporary differences.

GSAM has reviewed the Funds’ tax positions for all open tax years (the current and prior three years, as applicable) and has concluded that no provision for income tax is required in the Funds’ financial statements. Such open tax years remain subject to examination and adjustment by tax authorities.

F. Mortgage-Backed and Asset-Backed Securities — The Funds may invest in mortgage-backed 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 residential and/or commercial 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 certain mortgage-backed and asset-backed securities (including adjustable rate mortgage loans) 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-backed 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-backed 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 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 Statements of Operations.

G. Mortgage Dollar Rolls — The Funds (except for the Enhanced Income Fund) may enter into mortgage dollar rolls (“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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

date. The Funds treat 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 in a dollar roll transaction files for bankruptcy or becomes insolvent, the Funds’ use of proceeds from the transaction may be restricted pending a determination by, or with respect to, the other party.

H. Repurchase Agreements — The Funds may enter into repurchase agreements. Repurchase agreements involve the purchase of securities subject to the seller’s agreement to repurchase the securities at a mutually agreed upon date and price. During the term of a repurchase agreement, the value of the underlying securities held as collateral on behalf of the Funds, including accrued interest is required to exceed the value of the repurchase agreement, including accrued interest. If the seller defaults or becomes insolvent, realization of the collateral by the Funds may be delayed or limited and there may be a decline in the value of the collateral during the period while the Funds seek to assert their rights. The underlying securities for all repurchase agreements are held at the Funds’ custodian or designated subcustodians under tri-party repurchase agreements.

Pursuant to exemptive relief granted by the Securities and Exchange Commission 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. Under these joint accounts, the Funds’ credit exposure is allocated to the underlying repurchase agreements 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.

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

J. 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. A forward commitment involves 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 under these contracts. The Funds may dispose of or renegotiate these contracts after they have been entered into and may sell these securities before they are delivered, which may result in a capital gain or loss.

K. Derivatives — The Funds may make investments in derivative instruments, including, but not limited to, options, futures, swaps and other derivatives relating to foreign currency transactions. A derivative is an instrument whose value is derived from underlying assets, indices, reference rates or a combination of these factors. Derivative instruments may be privately negotiated contracts (often referred to as over the counter (“OTC”) derivatives) or they may be listed and traded on an exchange. Derivative contracts may involve future commitments to purchase or sell financial instruments or commodities

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2009 (Unaudited)


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

at specified terms on a specified date, or to exchange interest payment streams or currencies based on a notional or contractual amount. Derivative instruments may involve a high degree of financial risk. The use of derivatives also involves the risk of loss if the investment adviser is incorrect in its expectation of the timing or level of fluctuations in securities prices, interest rates or currency prices. Investments in derivative instruments also include the risk of default by the counterparty, the risk that the investment may not be liquid and 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.

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 with a corresponding offset in unrealized gains or losses. The Funds recognize a realized gain or loss when a contract is closed or expires.

The use of futures contracts involves, to varying degrees, elements of market and counterparty risk which may exceed the amounts recognized in the Statements of Assets and Liabilities. Futures contracts may be illiquid, and exchanges may limit fluctuations in futures contract prices during a single day. Changes in the value of a futures contract may not directly correlate with changes in the value of the underlying securities. These risks may decrease the effectiveness of the Funds’ strategies and potentially result in a loss. The Funds must set aside liquid assets, or engage in other appropriate measures to cover their obligations under these contracts.

Swap Contracts — The Funds may enter into swap transactions for hedging purposes or to seek to increase total return. 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 risk, liquidity risk and elements of credit, legal and documentation risk in excess of amounts recognized in the Statements of Assets and Liabilities. The Funds may pay or receive cash to collateralize these contracts. This cash collateral is recorded as assets/liabilities on the Funds’ books.

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 an unrealized gain or loss on the Statements of Operations. 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 realized gains or losses on the Statements of Operations. Gains or losses are also realized upon early termination of the swap agreements and recorded as realized gains or losses on the Statements of Operations. The Funds invest in the following type of swap:

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.

In April 2009, the Funds adopted FASB Accounting Standards Codification (“ASC”) 815 “Disclosures about Derivative Instruments and Hedging Activities”, which requires enhanced disclosures about the Funds’ derivatives and hedging activities. The following tables set forth the gross value of the Funds’ derivative contracts for trading activities by certain risk types as of September 30, 2009. The derivatives contracts represent interest rate risk and are located on the Statements

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

of Assets and Liabilities as derivatives assets and/or derivatives liabilities. The values in the table below exclude the effects of cash received or posted pursuant to derivative contracts, and therefore are not representative of the Funds’ net exposure.


	Derivative		Number of		Derivative			Number of
Fund	Assets^(a)		Contracts		Liabilities^(a)			Contracts
Enhanced Income	$	768,811		556	$	(3,548,481	)^(b)		1,716
Government Income		4,944,557		1,572		(7,481,674	)^(b)		13
Inflation Protected Securities		9,721		25		(79,299	)		58
Short Duration Government		11,268,416		8,779		(5,822,221	)^(b)		2,680
Ultra-Short Duration Government		1,261,027		703		(1,170,579	)^(b)		642


(a)		Located on the Statements of Assets and Liabilities in Swap contracts, at value and Unrealized gain (loss) on futures contracts. The Unrealized gain (loss) on future contracts include cumulative appreciation (depreciation) described in the Additional Investment Information section of the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.
(b)		Amounts include $1,537,263, $7,481,473, $3,568,306 and $595,578 for Enhanced Income, Government Income, Short Duration Government and Ultra-Short Duration Government Funds, respectively, which represent the payments to be made pursuant to bilateral agreements should counterparties exercise their “right to terminate” provisions based on, among others, the Funds’ performance, its failure to pay on its obligations or failure to pledge collateral. Such amounts do not include incremental charges directly associated with the close-out of the agreements. They also do not reflect the fair value of any assets pledged as collateral which, through the daily margining process, substantially offsets the aforementioned amounts and for which the Funds are entitled to a full return.

The following table sets forth by certain risk types the Funds’ gains (losses) related to derivative activities for the six months ended September 30, 2009 in accordance with ASC 815. These gains (losses) should be considered in the context that derivative contracts may have been executed to economically hedge securities and accordingly, gains or losses on derivative contracts may offset losses or gains attributable to securities. The derivatives below represent interest rate risk and the corresponding gains (losses) are included in Net Realized gain (loss) from futures transactions and swap contracts, and Net change in Unrealized gain (loss) on futures and swap contracts on the Statements of Operations.


				Net Change in
	Net Realized Gain			Unrealized Gain
Fund	(Loss)			(Loss)


Enhanced Income	$	(945,239	)	$	(548,678	)
Government Income		5,917,179			(5,339,738	)
Inflation Protected Securities		285,840			(143,466	)
Short Duration Government		8,706,929			(4,479,154	)
Ultra-Short Duration Government		486,991			(244,656	)

3. AGREEMENTS

A. Management Agreement — Under the Agreement applicable to each Fund, GSAM manages the Funds, subject to the general supervision of the trustees.

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2009 (Unaudited)


3. AGREEMENTS (continued)

For the six months ended September 30, 2009, contractual and effective net management fees with GSAM were at the following rates:


	Contractual Management Rate																		Effective Net
	Up to			Next			Next			Next			Over			Effective			Management
Fund	$1 billion			$1 billion			$3 billion			$3 billion			$8 billion			Rate			Rate

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


Government Income		0.54			0.49			0.47			0.46			0.45			0.54			0.54


Inflation Protected Securities		0.33			0.30			0.28			0.27			0.26			0.33			0.25	*


Short Duration Government		0.50			0.45			0.43			0.42			0.41			0.47			0.47


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


*		GSAM has voluntarily agreed to waive a portion of its management fee in order to achieve the effective net management rates.

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 fee accrued daily and paid monthly for distribution services and account maintenance services at the following annual rates calculated on a Fund’s average daily net assets of each respective share class:


	Distribution and Service Plan Rates
	Class A*			Class B			Class C			Class R*

Distribution Plan		0.25	%		0.75	%		0.75	%		0.50	%


Service Plan		—			0.25			0.25			—


*		With respect to Class A and Class R Shares, the Distributor at its discretion may use compensation for distribution services paid under the Plans to compensate service organizations for personal and account maintenance services and expenses so long as such total compensation under the Plans does not exceed the maximum cap on “service fees” imposed by the Financial Industry Regulatory Authority.

For the six months ended September 30, 2009, Goldman Sachs has voluntarily agreed to waive a portion of the Distribution and Service fees equal to 0.15% of the average daily net assets attributable to the Class B Shares of Short Duration Government Fund. Goldman Sachs may discontinue or modify this waiver in the future at its discretion.

Goldman Sachs may retain a portion of the Class A front end sales charge and Class B and Class C contingent deferred sales charges. During the six months ended September 30, 2009, Goldman Sachs advised that it retained the following approximate amounts:


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

Enhanced Income	$	5,200	$	—		N/A


Government Income		29,500		100	$	—


Inflation Protected Securities		26,600		N/A		—


Short Duration Government		53,300		—		—


Ultra-Short Duration Government		11,500		N/A		N/A

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


3. AGREEMENTS (continued)

C. Transfer Agency Agreement — Goldman Sachs also serves as the transfer agent for 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, Administration and Service Shares.

D. Service Plan, Shareholder Administration Plan and Administration Plan — The Trust, on behalf of Government Income, Short Duration Government and Ultra-Short Duration Government Funds, has adopted a Service Plan and a Shareholder Administration Plan for the Service Shares. In addition, the Trust, on behalf of Enhanced Income Fund, has adopted an Administration Plan for Administration Shares. These plans allow for Service and Administration Shares to compensate service organizations for providing varying levels of personal and account administration and shareholder administration services to their customers who each are beneficial owners of such shares. The Service Plan and Shareholder Administration Plan each provide for compensation to the service organizations in an amount equal to, on an annual basis, 0.25% (0.50% in aggregate) of the average daily net assets value of the Service Shares. The Administration Plan provides compensation to the service organizations in an amount equal to, on an annual basis, 0.25% of the average daily net assets value of the Administration Shares.

E. Other Agreements — GSAM has voluntarily agreed to limit certain “Other Expenses” (excluding management fees, distribution and service fees, transfer agent fees and expenses, Service Share fees, taxes, Administration Share fees, 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 that such expenses exceed, on an annual basis, a percentage rate of the average daily net assets of each Fund. Such expense reimbursements, if any, are computed daily and paid monthly. In addition, the Funds are not obligated to reimburse GSAM for prior fiscal year expense reimbursements, if any. These expense limitations may be modified or terminated at any time at the option of GSAM. The Other Expense limitations for Enhanced Income, Government Income, Inflation Protected Securities, Short Duration Government and Ultra-Short Duration Government Funds as an annual percentage rate of average daily net assets are 0.064% (effective July 1, 2009), 0.004%, 0.044%, 0.004% and 0.054%, respectively. Prior to July 1, 2009 the Other Expense limitation for the Enhanced Income Fund was 0.014%. 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, 2009, these expense reductions including any waivers and Other Expense reimbursements, were as follows (in thousands):


	Fee Waivers
			Class B		Other		Total
	Management		Distribution and		Expense		Expense
Fund	Fees		Service Fees		Reimbursements		Reductions

Enhanced Income	$	141	$	—	$	63	$	204


Government Income		—		—		426		426


Inflation Protected Securities		45		N/A		138		183


Short Duration Government		—		4		538		542


Ultra-Short Duration Government		—		N/A		124		124

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2009 (Unaudited)


3. AGREEMENTS (continued)

As of September 30, 2009, the amounts owed to affiliates of the Funds were as follows (in thousands):


			Distribution
	Management		and Service		Transfer
Fund	Fees		Fees		Agent Fees		Total

Enhanced Income	$	133	$	44	$	42	$	219


Government Income		437		179		79		695


Inflation Protected Securities		25		23		10		58


Short Duration Government		1,052		377		191		1,620


Ultra-Short Duration Government		174		51		35		260

F. Line of Credit Facility — The Funds participate in a $660,000,000 committed, unsecured revolving line of credit facility (the “facility”) together with other funds of the Trust and registered investment companies having management agreements with GSAM or its affiliates. Pursuant to the terms of the facility, the Funds and other borrowers may increase the credit amount by an additional $340,000,000, for a total of up to $1 billion. The facility is to be used solely for temporary or emergency purposes. The interest rate on borrowings is based on the federal funds rate. The facility also requires a fee to be paid by the Funds based on the amount of the commitment that has not been utilized. For the six months ended September 30, 2009, the Funds did not have any borrowings under the facility. Prior to May 12, 2009, the amount available through the facility was $700,000,000.

4. FAIR VALUE OF INVESTMENTS

The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a 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 are described below:

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

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

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


4. FAIR VALUE OF INVESTMENTS (continued)

The following is a summary of the Funds’ investments categorized in the fair value hierarchy:


Enhanced Income	Level 1			Level 2			Level 3

Assets
Fixed Income
U.S. Treasuries and/or Other U.S. Government Obligations and Agencies	$	36,494,404		$	165,763,560		$	—
Government Guarantee Obligations		—			207,074,077			—
Corporate Obligations		—			192,167,590			—
Foreign Debt Obligations		—			79,561,818			—
Asset-Backed Securities		—			68,076,992			177,816
Short-term Investments (including Repurchase Agreements)		—			88,926,267			—
Derivatives		768,811			—			—


Total	$	37,263,215		$	801,570,304		$	177,816


Liabilities
Derivatives	$	(2,011,218	)	$	(1,537,263	)	$	—

The following is a reconciliation of Level 3 investments for the six months ended September 30, 2009:


	Fixed Income
	Asset-Backed
	Securities

Beginning Balance as of April 1, 2009	$	—
Realized Gain (Loss)		—
Unrealized Gain (Loss) relating to instruments still held at reporting date		(41,212	)
Net Purchases (Sales)		(20,776	)
Net Transfers in and/or out of Level 3		239,804


Ending Balance as of September 30, 2009	$	177,816


Government Income	Level 1			Level 2			Level 3

Assets
Fixed Income
U.S. Treasuries and/or Other U.S. Government Obligations and Agencies	$	98,063,478		$	203,545,301		$	—
Government Guarantee Obligations		—			102,892,623			—
Mortgage-Backed Obligations		—			574,386,583			—
Municipal Debt Obligations		—			2,260,400			—
Asset-Backed Securities		—			3,345,682			—
Repurchase Agreements		—			29,100,000			—
Derivatives		2,507,773			2,436,784			—


Total	$	100,571,251		$	917,967,373		$	—


Liabilities
Fixed Income — Forward Sales Contracts
Mortgage-Backed Obligations	$	—		$	(6,834,122	)	$	—
Derivatives		(201	)		(7,481,473	)		—


Total	$	(201	)	$	(14,315,595	)	$	—

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2009 (Unaudited)


4. FAIR VALUE OF INVESTMENTS (continued)


Inflation Protected Securities	Level 1			Level 2		Level 3

Assets
U.S. Treasuries	$	123,559,971		$	—	$	—
Repurchase Agreements		—			3,000,000		—
Derivatives		9,721			—		—


Total	$	123,569,692		$	3,000,000	$	—


Liabilities
Derivatives	$	(79,299	)	$	—	$	—


Short Duration Government	Level 1			Level 2			Level 3

Assets
Fixed Income
U.S. Treasuries and/or Other U.S. Government Obligations and Agencies	$	244,927,886		$	859,455,326		$	—
Government Guarantee Obligations		—			457,671,383			—
Mortgage-Backed Obligations		—			975,470,016			63,575,625
Repurchase Agreements		—			303,700,000			—
Derivatives		8,005,470			3,262,946			—


Total	$	252,933,356		$	2,599,559,671		$	63,575,625


Liabilities
Derivatives	$	(2,253,915	)	$	(3,568,306	)	$	—

The following is a reconciliation of Level 3 investments for the six months ended September 30, 2009:


	Fixed Income
	Mortgage-Backed
	Obligations

Beginning Balance as of April 1, 2009	$	—
Realized Gain (Loss)		—
Unrealized Gain (Loss) relating to instruments still held at reporting date		163,359
Net Purchases (Sales)		63,412,266
Net Transfers in and/or out of Level 3		—


Ending Balance as of September 30, 2009	$	63,575,625

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


4. FAIR VALUE OF INVESTMENTS (continued)


Ultra-Short Duration Government	Level 1			Level 2			Level 3

Assets
Fixed Income
U.S. Treasury and/or Other U.S. Government Obligations and Agencies	$	27,610,533		$	110,484,165		$	—
Government Guarantee Obligations		—			41,187,431			—
Mortgage-Backed Obligations		—			205,667,252			12,094,875
Asset-Backed Securities		—			21,511,442			—
Repurchase Agreements		—			187,400,000			—
Derivatives		715,556			545,471			—


Total	$	28,326,089		$	566,795,761		$	12,094,875


Liabilities
Derivatives	$	(575,001	)	$	(595,578	)	$	—

The following is a reconciliation of Level 3 investments for the six months ended September 30, 2009:


	Fixed Income
	Mortgage-Backed
	Obligations

Beginning Balance as of April 1, 2009	$	—
Realized Gain (Loss)		—
Unrealized Gain (Loss) relating to instruments still held at reporting date		31,078
Net Purchases (Sales)		12,063,797
Net transfers in and/or out of Level 3		—


Ending Balance as of September 30, 2009	$	12,094,875

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, 2009, were as follows:


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

Enhanced Income	$	189,272,003	$	484,701,239	$	108,485,126	$	17,916,122


Government Income		2,779,662,663		137,727,044		2,735,041,510		78,221,558


Inflation Protected Securities		73,317,377		—		46,522,521		—


Short Duration Government		3,161,470,418		298,778,416		2,380,193,223		61,323,055


Ultra-Short Duration Government		225,988,610		70,891,179		29,100,276		23,269,545

For the six months ended September 30, 2009, Goldman Sachs earned approximately $16,100, $36,600, $1,000, $121,100 and $13,800 in brokerage commissions from portfolio transactions, including futures transactions executed with Goldman Sachs as the Futures Commission Merchant, executed on behalf of Enhanced Income, Government Income, Inflation Protected Securities, Short Duration Government and Ultra-Short Duration Government Funds, respectively.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2009 (Unaudited)

6. TAX INFORMATION

As of the most recent fiscal year end March 31, 2009, the Funds’ capital loss carryforwards and certain timing differences on a tax basis were as follows.


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

Capital loss carryforward:¹
Expiring 2010	$	(65,331,932	)	$	—		$	—		$	—		$	(54,199,739	)
Expiring 2011		—			—			—			—			(55,920,321	)
Expiring 2012		(7,658,641	)		—			—			—			(24,528,394	)
Expiring 2013		(352,397	)		—			—			—			(7,818,636	)
Expiring 2014		(320,682	)		—			—			—			(2,842,873	)
Expiring 2015		(987,433	)		—			—			—			(4,261,952	)
Expiring 2016		(2,472,185	)							��				—
Expiring 2017		—			—			(538,622	)		—			—


Total capital loss carryforward	$	(77,123,270	)	$	—		$	(538,622	)	$	—		$	(149,571,915	)


Timing differences (income distribution payable, post October losses, and straddles)	$	(191,297	)	$	(6,058,971	)	$	(1,253,510	)	$	(2,393,552	)	$	(18,534,666	)


¹		Expiration occurs on March 31 of the year indicated.

As of September 30, 2009, the Funds’ aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes was as follows:


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

Tax Cost	$	831,927,761		$	989,729,855		$	124,355,494		$	2,867,718,661		$	603,843,624


Gross unrealized gain		6,955,359			26,718,966			3,116,660			37,521,458			4,317,625
Gross unrealized loss		(640,596	)		(2,854,754	)		(912,183	)		(439,883	)		(2,205,551	)


Net unrealized security gain	$	6,314,763		$	23,864,212		$	2,204,477		$	37,081,575		$	2,112,074

The difference between book-basis and tax-basis unrealized gains (losses) is attributable primarily to differences related to the tax treatment of net mark-to-market gains/(losses) on regulated futures contracts, differences related to wash sales, treatment of swap transactions and premium amortization.

7. OTHER RISKS

Funds’ Shareholder Concentration Risk — Certain Goldman Sachs Fund of Funds Portfolios may invest a significant percentage of their 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 Funds may encounter difficulty meeting redemptions if unusual market conditions create an unfavorable environment in which the Funds are forced to liquidate their securities. As of September 30, 2009, the Goldman Sachs Balanced Strategy Portfolio was a beneficial owner of approximately 5% (as a percentage of outstanding shares) of the Short Duration Government Fund.

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). Additionally, the Funds

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


7. OTHER RISKS (continued)

may also be exposed to credit risk in the event that an issuer fails to perform or that an institution or entity with which the Funds have unsettled or open transaction defaults.

8. INDEMNIFICATIONS

Under the Trust’s organizational documents, its trustees, officers, employees and agents are indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the 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 made against the Funds that have not yet occurred. However, GSAM believes the risk of loss under these arrangements to be remote.

9. OTHER MATTERS

New Accounting Pronouncement — In May 2009, the FASB issued FASB ASC 855 “Subsequent Events”. This standard requires disclosure in the financial statements to reflect the effects of subsequent events that provide additional information on conditions about the financial statements as of the balance sheet date (recognized subsequent events) and disclosure of subsequent events that provide additional information about conditions after the balance sheet date if the financial statements would otherwise be misleading (unrecognized subsequent events). ASC 855 is effective for interim and annual financial statements issued for fiscal years ending after June 15, 2009. For purposes of inclusion in the financial statements, GSAM has concluded that subsequent events after the balance sheet date have been evaluated through November 24, 2009, the date that the financial statements were issued.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2009 (Unaudited)

10. SUMMARY OF SHARE TRANSACTIONS

Share activity is as follows:


	Enhanced Income Fund
	For the Six Months Ended						For the Fiscal Year Ended
	September 30, 2009						March 31, 2009

	Shares			Dollars			Shares			Dollars

Class A Shares
Shares sold		21,448,165		$	206,438,322			3,977,453		$	37,925,567
Reinvestment of distributions		92,367			889,819			124,082			1,184,218
Shares converted from Class B^(a)		4,515			43,502			24,377			233,041
Shares redeemed		(3,885,890	)		(37,450,160	)		(3,247,522	)		(30,962,849	)


		17,659,157			169,921,483			878,390			8,379,977


Class B Shares
Shares sold		11,577			111,252			24,146			229,518
Reinvestment of distributions		1,241			11,909			7,252			69,162
Shares converted to Class A^(a)		(4,520	)		(43,502	)		(24,409	)		(233,041	)
Shares redeemed		(57,685	)		(554,144	)		(136,202	)		(1,292,826	)


		(49,387	)		(474,485	)		(129,213	)		(1,227,187	)


Class C Shares
Shares sold		—			—			—			—
Reinvestment of distributions		—			—			—			—
Shares redeemed		—			—			—			—


		—			—			—			—


Institutional Shares
Shares sold		58,594,619			563,385,975			18,152,696			173,077,247
Reinvestment of distributions		439,600			4,229,794			738,199			7,041,301
Shares redeemed		(19,119,407	)		(184,182,658	)		(19,107,125	)		(181,534,287	)


		39,914,812			383,433,111			(216,230	)		(1,415,739	)


Administration Shares
Shares sold		376,059			3,614,269			36,461			347,835
Reinvestment of distributions		2,379			22,964			820			7,836
Shares redeemed		(109,280	)		(1,055,844	)		(33,839	)		(322,909	)


		269,158			2,581,389			3,442			32,762


Service Shares
Shares sold		—			—			—			—
Reinvestment of distributions		—			—			—			—
Shares redeemed		—			—			—			—


		—			—			—			—


Class IR Shares
Shares sold		—			—			—			—
Reinvestment of distributions		—			—			—			—
Shares redeemed		—			—			—			—


		—			—			—			—


Class R Shares
Shares sold		—			—			—			—
Reinvestment of distributions		—			—			—			—
Shares redeemed		—			—			—			—


		—			—			—			—


NET INCREASE (DECREASE)		57,793,740		$	555,461,498			536,389		$	5,769,813


(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.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


10. SUMMARY OF SHARE TRANSACTIONS (continued)


Government Income Fund												Inflation Protected Securities Fund

For the Six Months Ended						For the Fiscal Year Ended						For the Six Months Ended						For the Fiscal Year Ended
September 30, 2009						March 31, 2009						September 30, 2009						March 31, 2009

Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars


	6,706,531		$	101,552,729			19,619,893		$	291,967,198			2,370,303		$	24,853,491			4,985,039		$	53,424,202
	474,097			7,193,319			1,254,486			18,613,561			33,672			354,241			82,361			833,811
	176,885			2,669,145			277,612			4,131,237			—			—			—			—
	(9,555,264	)		(144,761,679	)		(17,203,463	)		(255,743,785	)		(984,504	)		(10,338,495	)		(2,523,718	)		(26,283,770	)


	(2,197,751	)		(33,346,486	)		3,948,528			58,968,211			1,419,471			14,869,237			2,543,682			27,974,243



	210,488			3,191,514			1,292,600			19,188,493			—			—			—			—
	26,026			394,714			93,631			1,389,231			—			—			—			—
	(176,885	)		(2,669,145	)		(277,612	)		(4,131,237	)		—			—			—			—
	(626,631	)		(9,488,786	)		(1,398,656	)		(20,775,725	)		—			—			—			—


	(567,002	)		(8,571,703	)		(290,037	)		(4,329,238	)		—			—			—			—



	572,359			8,659,802			1,826,343			27,135,720			756,029			8,002,638			937,587			10,031,530
	20,198			306,244			55,083			817,542			2,715			28,608			8,703			87,504
	(836,835	)		(12,653,262	)		(1,099,189	)		(16,307,420	)		(156,075	)		(1,650,836	)		(565,443	)		(5,885,723	)


	(244,278	)		(3,687,216	)		782,237			11,645,842			602,669			6,380,410			380,847			4,233,311



	4,641,243			70,163,135			11,741,618			174,132,495			3,237,676			34,792,717			4,367,819			46,924,605
	160,038			2,425,169			519,779			7,693,904			31,463			331,436			79,914			809,629
	(4,604,399	)		(69,663,255	)		(15,985,031	)		(236,804,039	)		(448,833	)		(4,713,802	)		(1,075,101	)		(11,572,609	)


	196,882			2,925,049			(3,723,634	)		(54,977,640	)		2,820,306			30,410,351			3,372,632			36,161,625



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


	—			—			—			—			—			—			—			—



	1,686,494			25,479,837			4,480,253			66,405,064			—			—			—			—
	56,963			862,459			123,054			1,822,700			—			—			—			—
	(1,356,449	)		(20,483,109	)		(2,590,855	)		(38,508,139	)		—			—			—			—


	387,008			5,859,187			2,012,452			29,719,625			—			—			—			—



	4,661			70,716			6			94			1,184			12,428			—			—
	29			451			33			479			12			126			26			266
	(13	)		(191	)		(4	)		(65	)		(3	)		(28	)		—			—


	4,677			70,976			35			508			1,193			12,526			26			266



	90,089			1,371,068			2,153			32,260			8,043			85,841			23			228
	408			6,206			40			602			14			158			22			219
	(4,785	)		(72,789	)		(4	)		(65	)		(17	)		(181	)		—			—


	85,712			1,304,485			2,189			32,797			8,040			85,818			45			447


	(2,334,752	)	$	(35,445,708	)		2,731,770		$	41,060,105			4,851,679		$	51,758,342			6,297,232		$	68,369,892

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2009 (Unaudited)


10. SUMMARY OF SHARE TRANSACTIONS (continued)

Share activity is as follows (continued):


	Short Duration Government Fund
	For the Six Months Ended						For the Fiscal Year Ended
	September 30, 2009						March 31, 2009

	Shares			Dollars			Shares			Dollars

Class A Shares
Shares sold		69,519,545		$	724,364,097			99,346,051		$	1,011,007,253
Reinvestment of distributions		823,215			8,588,929			1,677,702			17,056,364
Shares converted from Class B^(a)		13,684			142,437			52,043			528,840
Shares redeemed		(42,684,763	)		(444,740,186	)		(49,793,055	)		(505,351,204	)


		27,671,681			288,355,277			51,282,741			523,241,253


Class B Shares
Shares sold		4,523			46,817			932			9,726
Reinvestment of distributions		2,870			29,823			15,193			153,247
Shares converted to Class A^(a)		(13,733	)		(142,437	)		(52,249	)		(528,840	)
Shares redeemed		(57,435	)		(596,828	)		(201,503	)		(2,032,286	)


		(63,775	)		(662,625	)		(237,627	)		(2,398,153	)


Class C Shares
Shares sold		6,024,896			62,355,071			10,387,640			105,265,482
Reinvestment of distributions		51,324			531,994			111,703			1,128,291
Shares redeemed		(2,644,956	)		(27,391,958	)		(2,625,447	)		(26,539,791	)


		3,431,264			35,495,107			7,873,896			79,853,982


Institutional Shares
Shares sold		100,565,105			1,044,850,297			58,775,815			596,482,137
Reinvestment of distributions		998,792			10,385,652			2,552,535			25,796,750
Shares redeemed		(47,678,887	)		(495,151,332	)		(54,317,878	)		(549,430,218	)


		53,885,010			560,084,617			7,010,472			72,848,669


Service Shares
Shares sold		7,732,739			80,235,239			14,780,638			148,102,275
Reinvestment of distributions		77,288			802,691			274,893			2,783,303
Shares redeemed		(3,051,072	)		(31,631,089	)		(7,648,038	)		(78,147,525	)


		4,758,955			49,406,841			7,407,493			72,738,053


Class IR Shares
Shares sold		119,895			1,250,838			4,920			50,825
Reinvestment of distributions		346			3,610			51			528
Shares redeemed		(18,911	)		(196,962	)		(4	)		(43	)


		101,330			1,057,486			4,967			51,310


NET INCREASE (DECREASE)		89,784,465		$	933,736,703			73,341,942		$	746,335,114


(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.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


10. SUMMARY OF SHARE TRANSACTIONS (continued)


Ultra-Short Duration Government Fund

For the Six Months Ended						For the Fiscal Year Ended
September 30, 2009						March 31, 2009

Shares			Dollars			Shares			Dollars


	26,112,036		$	230,797,218			14,276,979		$	128,317,663
	229,648			2,029,589			401,915			3,590,780
	—			—			—			—
	(7,433,585	)		(65,714,571	)		(13,395,307	)		(119,438,406	)


	18,908,099			167,112,236			1,283,587			12,470,037



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


	—			—			—			—



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


	—			—			—			—



	27,194,764			240,510,367			17,967,456			162,955,809
	165,436			1,463,068			688,166			6,202,363
	(9,357,176	)		(82,745,637	)		(48,665,824	)		(437,931,329	)


	18,003,024			159,227,798			(30,010,202	)		(268,773,157	)



	36,969			328,544			37,835			339,631
	3,168			28,124			10,550			94,874
	(58,992	)		(524,221	)		(111,308	)		(996,667	)


	(18,855	)		(167,553	)		(62,923	)		(562,162	)



	33,047			292,135			1			9
	114			1,008			47			411
	(5,225	)		(46,185	)		—			—


	27,936			246,958			48			420


	36,920,204		$	326,419,439			(28,789,490	)	$	(256,864,862	)

GOLDMAN SACHS ENHANCED INCOME FUND

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period


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

FOR THE SIX MONTHS ENDED SEPTEMBER 30, (UNAUDITED)


	2009 - A	$	9.51	$	0.08	$	0.17		$	0.25	$	(0.10	)
	2009 - B		9.50		0.05		0.16			0.21		(0.06	)
	2009 - Institutional		9.50		0.10		0.16			0.26		(0.11	)
	2009 - Administration		9.53		0.08		0.17			0.25		(0.10	)


FOR THE FISCAL YEAR ENDED MARCH 31,


	2009 - A		9.67		0.28		(0.12	)		0.16		(0.32	)
	2009 - B		9.65		0.21		(0.11	)		0.10		(0.25	)
	2009 - Institutional		9.66		0.31		(0.11	)		0.20		(0.36	)
	2009 - Administration		9.68		0.29		(0.11	)		0.18		(0.33	)


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


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


FOR THE FISCAL YEARS ENDED OCTOBER 31,


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




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




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




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


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


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

(b)

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


(c)	Annualized.

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

GOLDMAN SACHS ENHANCED INCOME FUND


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




$	9.66		2.62	%	$	219,358		0.63	%^(c)		1.62	%^(c)		0.70	%^(c)		1.55	%^(c)		27	%
	9.65		2.24			1,776		1.38	^(c)		1.05	^(c)		1.45	^(c)		0.98	^(c)		27
	9.65		2.79			611,313		0.29	^(c)		2.01	^(c)		0.36	^(c)		1.94	^(c)		27
	9.68		2.66			2,905		0.54	^(c)		1.75	^(c)		0.61	^(c)		1.68	^(c)		27





	9.51		1.73			48,001		0.59			2.94			0.78			2.75			180
	9.50		1.08			2,218		1.34			2.21			1.53			2.02			180
	9.50		2.07			222,638		0.25			3.30			0.44			3.11			180
	9.53		1.92			295		0.50			3.04			0.69			2.85			180





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





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




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




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




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

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

GOLDMAN SACHS GOVERNMENT INCOME FUND

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period


				Income (loss) from							Distributions
				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)


	2009 - A	$	15.14	$	0.23	$	0.22		$	0.45	$	(0.23	)	$	—		$	(0.23	)
	2009 - B		15.14		0.17		0.22			0.39		(0.17	)		—			(0.17	)
	2009 - C		15.14		0.17		0.22			0.39		(0.17	)		—			(0.17	)
	2009 - Institutional		15.12		0.26		0.22			0.48		(0.26	)		—			(0.26	)
	2009 - Service		15.11		0.22		0.22			0.44		(0.22	)		—			(0.22	)
	2009 - IR		15.14		0.23		0.24			0.47		(0.25	)		—			(0.25	)
	2009 - R		15.14		0.20		0.23			0.43		(0.22	)		—			(0.22	)


FOR THE FISCAL YEAR ENDED MARCH 31,


	2009 - A		15.07		0.57		0.16			0.73		(0.60	)		(0.06	)		(0.66	)
	2009 - B		15.07		0.46		0.15			0.61		(0.48	)		(0.06	)		(0.54	)
	2009 - C		15.07		0.46		0.15			0.61		(0.48	)		(0.06	)		(0.54	)
	2009 - Institutional		15.05		0.62		0.16			0.78		(0.65	)		(0.06	)		(0.71	)
	2009 - Service		15.04		0.54		0.16			0.70		(0.57	)		(0.06	)		(0.63	)
	2009 - IR		15.08		0.60		0.15			0.75		(0.63	)		(0.06	)		(0.69	)
	2009 - R		15.08		0.52		0.17			0.69		(0.57	)		(0.06	)		(0.63	)


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


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


FOR THE FISCAL YEARS ENDED OCTOBER 31,


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




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




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




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


*	The Fund changed its fiscal year end from October 31 to March 31.
(a)	Calculated based on the average shares outstanding methodology.
(b)	Assumes investment at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, a complete redemption of the investment at the net asset value at the end of the period and no sales or redemption charges. Total returns would be reduced if a sales or redemption charge was taken into account. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total returns for periods less than one full year are not annualized.
(c)	The portfolio turnover rates excluding the effect of mortgage dollar rolls were as follows:


For the Six Months	For the
Ended September 30,	Periods Ended
2009	2009	2008	2007	2006
237%	373%	119%	117%	690%


	Prior years include the effect of mortgage dollar roll transactions, if any.
(d)	Annualized.
(e)	Amount is less than $0.005 per share.

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

GOLDMAN SACHS GOVERNMENT INCOME FUND


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




$	15.36		3.00	%	$	549,086		0.92	%^(d)		3.03	%^(d)		1.01	%^(d)		2.94	%^(d)		282	%
	15.36		2.61			37,871		1.67	^(d)		2.29	^(d)		1.76	^(d)		2.20	^(d)		282
	15.36		2.60			38,868		1.67	^(d)		2.29	^(d)		1.76	^(d)		2.20	^(d)		282
	15.34		3.18			252,051		0.58	^(d)		3.37	^(d)		0.67	^(d)		3.28	^(d)		282
	15.33		2.92			97,370		1.08	^(d)		2.87	^(d)		1.17	^(d)		2.78	^(d)		282
	15.36		3.13			83		0.67	^(d)		3.10	^(d)		0.76	^(d)		3.01	^(d)		282
	15.35		2.85			1,360		1.17	^(d)		2.73	^(d)		1.26	^(d)		2.64	^(d)		282





	15.14		5.00			574,520		0.92			3.84			0.98			3.78			386
	15.14		4.22			45,916		1.67			3.10			1.73			3.04			386
	15.14		4.19			42,004		1.67			3.07			1.73			3.01			386
	15.12		5.37			245,475		0.58			4.21			0.64			4.15			386
	15.11		4.85			90,132		1.08			3.66			1.14			3.60			386
	15.14		5.19			11		0.67			4.06			0.73			4.00			386
	15.14		4.85			43		1.17			3.55			1.23			3.49			386





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





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




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




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




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

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

GOLDMAN SACHS INFLATION PROTECTED SECURITIES FUND

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period


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

FOR THE SIX MONTHS ENDED SEPTEMBER 30, (UNAUDITED)


	2009 - A	$	10.51	$	0.24	^(b)	$	0.15		$	0.39		$	(0.09	)	$	—		$	—		$	(0.09	)
	2009 - C		10.54		0.19	^(b)		0.16			0.35			(0.05	)		—			—			(0.05	)
	2009 - Institutional		10.54		0.26	^(b)		0.15			0.41			(0.11	)		—			—			(0.11	)
	2009 - IR		10.53		0.24	^(b)		0.15			0.39			(0.10	)		—			—			(0.10	)
	2009 - R		10.53		0.18	^(b)		0.20			0.38			(0.08	)		—			—			(0.08	)


FOR THE FISCAL YEAR ENDED MARCH 31,


	2009 - A		11.07		0.04			(0.35	)		(0.31	)		(0.09	)		(0.02	)		(0.14	)		(0.25	)
	2009 - C		11.11		(0.06	)		(0.34	)		(0.40	)		(0.06	)		(0.02	)		(0.09	)		(0.17	)
	2009 - Institutional		11.11		0.01			(0.29	)		(0.28	)		(0.11	)		(0.02	)		(0.16	)		(0.29	)
	2009 - IR		11.09		0.15			(0.43	)		(0.28	)		(0.11	)		(0.02	)		(0.15	)		(0.28	)
	2009 - R		11.09		0.11			(0.44	)		(0.33	)		(0.08	)		(0.02	)		(0.13	)		(0.23	)


FOR THE PERIOD ENDED MARCH 31,


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

(a)


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


(c)	Annualized.

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

GOLDMAN SACHS INFLATION PROTECTED SECURITIES FUND


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




$	10.81		3.72	%	$	62,498		0.67	%^(c)		4.65	%^(c)		1.00	%^(c)		4.32	%^(c)		42	%
	10.84		3.32			13,618		1.42	^(c)		3.65	^(c)		1.75	^(c)		3.32	^(c)		42
	10.84		3.88			78,605		0.33	^(c)		4.98	^(c)		0.66	^(c)		4.65	^(c)		42
	10.82		3.74			24		0.42	^(c)		4.62	^(c)		0.75	^(c)		4.29	^(c)		42
	10.83		3.58			98		0.92	^(c)		3.38	^(c)		1.25	^(c)		3.05	^(c)		42





	10.51		(2.68	)		45,855		0.67			0.41			1.19			(0.11	)		44
	10.54		(3.49	)		6,890		1.42			(0.57	)		1.94			(1.09	)		44
	10.54		(2.33	)		46,706		0.33			(0.25	)		0.85			(0.77	)		44
	10.53		(2.45	)		10		0.42			1.44			0.94			0.92			44
	10.53		(2.90	)		11		0.92			1.01			1.44			0.49			44





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

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period


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

FOR THE SIX MONTHS ENDED SEPTEMBER 30, (UNAUDITED)


	2009 - A	$	10.36	$	0.10	$	0.11		$	0.21		$	(0.10	)	$	—		$	(0.10	)
	2009 - B		10.32		0.07		0.11			0.18			(0.07	)		—			(0.07	)
	2009 - C		10.30		0.06		0.10			0.16			(0.06	)		—			(0.06	)
	2009 - Institutional		10.33		0.12		0.11			0.23			(0.12	)		—			(0.12	)
	2009 - Service		10.31		0.09		0.12			0.21			(0.10	)		—			(0.10	)
	2009 - IR		10.36		0.11		0.12			0.23			(0.12	)		—			(0.12	)


FOR THE FISCAL YEAR ENDED MARCH 31,


	2009 - A		10.14		0.27		0.31			0.58			(0.31	)		(0.05	)		(0.36	)
	2009 - B		10.10		0.22		0.30			0.52			(0.25	)		(0.05	)		(0.30	)
	2009 - C		10.07		0.19		0.33			0.52			(0.24	)		(0.05	)		(0.29	)
	2009 - Institutional		10.11		0.31		0.31			0.62			(0.35	)		(0.05	)		(0.40	)
	2009 - Service		10.09		0.25		0.32			0.57			(0.30	)		(0.05	)		(0.35	)
	2009 - IR		10.14		0.30		0.31			0.61			(0.34	)		(0.05	)		(0.39	)


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


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


FOR THE FISCAL YEARS ENDED OCTOBER 31,


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



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



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



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

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


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

(b)


(c)	The portfolio turnover rates excluding the effect of mortgage dollar rolls were as follows:


For the Six Months	For the
Ended September 30,	Periods Ended
2009	2009	2008	2007
97%	307%	55%	96%

Prior years include the effect of mortgage dollar roll transactions, if any.


(d)	Annualized.

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND


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




$	10.47		2.07	%	$	1,233,612		0.85	%^(d)		2.00	%^(d)		0.89	%^(d)		1.96	%^(d)		107	%
	10.43		1.77			5,092		1.45	^(d)		1.43	^(d)		1.64	^(d)		1.24	^(d)		107
	10.40		1.60			159,938		1.60	^(d)		1.25	^(d)		1.64	^(d)		1.21	^(d)		107
	10.44		2.25			1,422,317		0.51	^(d)		2.32	^(d)		0.55	^(d)		2.28	^(d)		107
	10.42		2.00			135,528		1.01	^(d)		1.82	^(d)		1.05	^(d)		1.78	^(d)		107
	10.47		2.19			1,124		0.60	^(d)		2.15	^(d)		0.64	^(d)		2.11	^(d)		107





	10.36		5.90			933,942		0.86			2.63			0.91			2.58			308
	10.32		5.29			5,698		1.46			2.01			1.66			1.81			308
	10.30		5.25			122,944		1.61			1.84			1.66			1.79			308
	10.33		6.28			850,831		0.52			3.11			0.57			3.06			308
	10.31		5.76			85,020		1.02			2.43			1.07			2.38			308
	10.36		6.16			62		0.61			2.99			0.66			2.94			308





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





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



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



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



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

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

GOLDMAN SACHS ULTRA SHORT-DURATION GOVERNMENT FUND

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period


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

FOR THE SIX MONTHS ENDED SEPTEMBER 30, (UNAUDITED)


	2009 - A	$	8.77	$	0.07	$	0.13		$	0.20		$	(0.13	)
	2009 - Institutional		8.77		0.09		0.14			0.23			(0.15	)
	2009 - Service		8.81		0.07		0.14			0.21			(0.13	)
	2009 - IR		8.76		0.07		0.16			0.23			(0.15	)


FOR THE FISCAL YEAR ENDED MARCH 31,


	2009 - A		9.14		0.30		(0.32	)		(0.02	)		(0.35	)
	2009 - Institutional		9.14		0.34		(0.33	)		0.01			(0.38	)
	2009 - Service		9.18		0.29		(0.33	)		(0.04	)		(0.33	)
	2009 - IR		9.14		0.34		(0.35	)		(0.01	)		(0.37	)


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


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


FOR THE FISCAL YEARS ENDED OCTOBER 31,


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




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




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




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

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


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

(b)


(c)	The portfolio turnover rates excluding the effect of mortgage dollar rolls were as follows:

The fund did not have any mortgage dollar roll transactions for the fiscal year end March 31, 2009.

Prior years include the effect of mortgage dollar roll transactions, if any.


(d)	Annualized.


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

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

GOLDMAN SACHS ULTRA SHORT-DURATION GOVERNMENT FUND


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




$	8.84		2.34	%	$	266,002		0.83	%^(d)		1.63	%^(d)		0.90	%^(d)		1.56	%^(d)		18	%
	8.85		2.63			302,355		0.49	^(d)		2.02	^(d)		0.56	^(d)		1.95	^(d)		18
	8.89		2.36			2,778		0.99	^(d)		1.68	^(d)		1.06	^(d)		1.61	^(d)		18
	8.84		2.59			257		0.58	^(d)		1.53	^(d)		0.65	^(d)		1.46	^(d)		18





	8.77		(0.26	)		97,936		0.83			3.39			0.90			3.32			163
	8.77		0.07			141,806		0.49			3.74			0.56			3.67			163
	8.81		(0.42	)		2,919		0.99			3.22			1.06			3.15			163
	8.76		(0.13	)		10		0.58			3.81			0.65			3.74			163





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





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




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




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




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

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Fund Expenses — Six Month Period Ended September 30, 2009 (Unaudited)

As a shareholder of Class A, Class B, Class C, Institutional, Administration, Service, Class IR or Class R Shares of a Fund you incur two types of costs: (1) transaction costs, including sales charges on purchase payments (with respect to Class A Shares), contingent deferred sales charges on redemptions (with respect to Class B and Class C Shares), and redemption fees (if any); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees (with respect to Class A, Class B, Class C and Class R Shares); and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in Class A, Class B, Class C, Institutional, Administration, Service, Class IR and Class R Shares of the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from April 1, 2009 through September 30, 2009.

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, redemption fees, or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


	Enhanced Income Fund							Government Income Fund							Inflation Protected Securities Fund							Short Duration Government Fund							Ultra-Short Duration Government Fund
						Expenses							Expenses							Expenses							Expenses							Expenses
	Beginning		Ending			Paid for the		Beginning		Ending			Paid for the		Beginning		Ending			Paid for the		Beginning		Ending			Paid for the		Beginning		Ending			Paid for the
	Account Value		Account Value			6 months ended		Account Value		Account Value			6 months ended		Account Value		Account Value			6 months ended		Account Value		Account Value			6 months ended		Account Value		Account Value			6 months ended
Share Class	4/1/09		9/30/09			9/30/09*		4/1/09		9/30/09			9/30/09*		4/1/09		9/30/09			9/30/09*		4/1/09		9/30/09			9/30/09*		4/1/09		9/30/09			9/30/09*
Class A
Actual	$	1,000	$	1,026.20		$	3.20	$	1,000	$	1,030.00		$	4.68	$	1,000	$	1,037.20		$	3.42	$	1,000	$	1,020.70		$	4.31	$	1,000	$	1,023.40		$	4.21
Hypothetical 5% return		1,000		1,021.91	+		3.19		1,000		1,020.46	+		4.66		1,000		1,021.71	+		3.40		1,000		1,020.81	+		4.31		1,000		1,020.91	+		4.20

Class B
Actual		1,000		1,022.40			7.00		1,000		1,026.10			8.48		N/A		N/A			N/A		1,000		1,017.70			7.33		N/A		N/A			N/A
Hypothetical 5% return		1,000		1,018.15	+		6.98		1,000		1,016.70	+		8.44		N/A		N/A			N/A		1,000		1,017.80	+		7.33		N/A		N/A			N/A

Class C
Actual		N/A		N/A			N/A		1,000		1,026.00			8.48		1,000		1,033.20			7.24		1,000		1,016.00			8.09		N/A		N/A			N/A
Hypothetical 5% return		N/A		N/A			N/A		1,000		1,016.70	+		8.44		1,000		1,017.95	+		7.18		1,000		1,017.05	+		8.09		N/A		N/A			N/A

Institutional
Actual		1,000		1,027.90			1.47		1,000		1,031.80			2.95		1,000		1,038.80			1.69		1,000		1,022.50			2.59		1,000		1,026.30			2.49
Hypothetical 5% return		1,000		1,023.61	+		1.47		1,000		1,022.16	+		2.94		1,000		1,023.41	+		1.67		1,000		1,022.51	+		2.59		1,000		1,022.61	+		2.48

Administration
Actual		1,000		1,026.60			2.74		N/A		N/A			N/A		N/A		N/A			N/A		N/A		N/A			N/A		N/A		N/A			N/A
Hypothetical 5% return		1,000		1,022.36	+		2.74		N/A		N/A			N/A		N/A		N/A			N/A		N/A		N/A			N/A		N/A		N/A			N/A

Service
Actual		N/A		N/A			N/A		1,000		1,029.20			5.49		N/A		N/A			N/A		1,000		1,020.00			5.11		1,000		1,023.60			5.02
Hypothetical 5% return		N/A		N/A			N/A		1,000		1,019.65	+		5.47		N/A		N/A			N/A		1,000		1,020.00	+		5.11		1,000		1,020.10	+		5.01

Class IR
Actual		N/A		N/A			N/A		1,000		1,031.30			3.41		1,000		1,037.40			2.15		1,000		1,021.90			3.04		1,000		1,025.90			2.95
Hypothetical 5% return		N/A		N/A			N/A		1,000		1,021.71	+		3.40		1,000		1,022.96	+		2.13		1,000		1,022.06	+		3.04		1,000		1,022.16	+		2.94

Class R
Actual		N/A		N/A			N/A		1,000		1,028.50			5.95		1,000		1,035.80			4.70		N/A		N/A			N/A		N/A		N/A			N/A
Hypothetical 5% return		N/A		N/A			N/A		1,000		1,019.20	+		5.92		1,000		1,020.46	+		4.66		N/A		N/A			N/A		N/A		N/A			N/A

Expenses for each share class are calculated using each Fund’s annualized net expense ratio for each class, which represents the ongoing expenses as a percentage of net assets for the six months ended September 30, 2009. Expenses are calculated by multiplying the annualized net expense ratio by the average account value for the period; then multiplying the result by the number of days in the most recent fiscal half year; and then dividing that result by the number of days in the fiscal year. The annualized net expense ratios for the period were as follows:


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

Enhanced Income		0.63	%			1.38	%		N/A			0.29	%		0.54	%		N/A			N/A			N/A
Government Income		0.92				1.67			1.67	%		0.58			N/A			1.08	%		0.67	%		1.17	%
Inflation Protected Securities		0.67		��		N/A			1.42			0.33			N/A			N/A			0.42			0.92
Short Duration Government		0.85				1.45			1.60			0.51			N/A			1.01			0.60			N/A
Ultra-Short Duration Government		0.83				N/A			N/A			0.49			N/A			0.99			0.58			N/A


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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Statement Regarding Basis for Approval of Management Agreements (Unaudited)

Background

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

The Management Agreements were most recently approved for continuation until June 30, 2010 by the Board of Trustees, including those Trustees who are not parties to the Management Agreements or “interested persons” (as defined in the Investment Company Act of 1940, as amended) of any party thereto (the “Independent Trustees”), at a meeting held on June 17, 2009 (the “Annual Contract Meeting”).

To assist the Trustees in their deliberations at the Annual Contract Meeting, and in addition to reports on the Funds’ investment performance, expenses and other matters discussed at regularly scheduled Board meetings during the year, the Trustees have established a Contract Review Committee (the “Committee”), comprised of the Independent Trustees. The Committee held meetings on December 17, 2008, February 11, 2009 and May 20, 2009. At those Committee meetings, the Independent Trustees considered matters relating to the Management Agreements including:


	(a)	the nature and quality of the advisory, administrative and other services provided to the Funds by the Investment Adviser and its affiliates;


	(b)	the Funds’ investment performance;


	(c)	the Funds’ management fee arrangements;


	(d)	the voluntary undertakings of the Investment Adviser and the Funds’ affiliated distributor to reimburse certain fees and expenses of the Funds that exceed specified levels and the estimated annualized savings realized by the Funds from those undertakings;


	(e)	potential economies of scale and the levels of breakpoints in the fees payable by the Funds under the Management Agreements;


	(f)	the relative expense levels of the Funds as compared to those of comparable funds managed by the Investment Adviser, as well as those managed by other advisers;


	(g)	information relating to the profitability of the Management Agreements and the transfer agency and distribution and service arrangements of each of the Funds and the Trust as a whole to the Investment Adviser and its affiliates;
	(h)	the statutory and regulatory requirements applicable to the approval and continuation of mutual fund investment management agreements;


	(i)	a summary of fee concessions made by the Investment Adviser and its affiliates over the past several years with respect to the Funds;
	(j)	capacity issues relating to the securities in which the Funds invest;


	(k)	to the extent the Investment Adviser manages institutional accounts or collective investment vehicles having investment objectives and policies similar to those of the Funds, comparative information on the advisory fees charged and services provided to those accounts by the Investment Adviser;


	(l)	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;

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

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


	(m)	the current pricing of services provided by, and the profitability of, the Funds’ transfer agent, Goldman, Sachs & Co. (“Goldman Sachs”); and


	(n)	the nature and quality of the services provided to the Funds by their 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 teams; (c) the groups or teams within the Investment Adviser that support the portfolio management teams, including legal, compliance, internal audit, the credit department, fund controllers, tax, product services, valuation oversight, market risk analysis, finance and strategy, operations, shareholder services, risk management and advisory, training and technology; (d) whether certain reductions in headcount due to the economic environment were likely to affect the quality of the services provided to the Funds; (e) the Investment Adviser’s business continuity and disaster recovery planning; (f) the Investment Adviser’s financial resources and its ability to hire and retain talented personnel; (g) the fees received by the Investment Adviser’s affiliates from the Funds for transfer agency, distribution and other services; (h) the terms of the Management Agreements and agreements with other service providers entered into by the Trust on behalf of the Funds; (i) the administrative services provided under the Management Agreements, including the nature and extent of the Investment Adviser’s oversight of the Funds’ other service providers, including the custodian and fund accounting agent; (j) portfolio trading related issues; (k) the Investment Adviser’s processes and policies addressing various types of potential conflicts of interest; (l) the Investment Adviser’s approach to risk management; (m) an overview of the Funds’ distribution plan; and (n) an annual review of the effectiveness of the Funds’ compliance program. At the Annual Contract Meeting, the Trustees also considered further the Investment Adviser’s profitability with respect to each Fund, and each Fund’s investment performance, fees and expenses, including each Fund’s expense trends over time and any breakpoints in the fee rates payable by each Fund under the Management Agreements.

In connection with the Committee meetings and the Annual Contract Meeting, the Trustees attended sessions at which they reviewed information regarding the Funds’ assets, share purchase and redemption activity, and the payment of Rule 12b-1 distribution and service fees by the Funds and the payment of non-Rule 12b-1 shareholder service and/or administration fees by those Funds offering Service or Administration Shares. Also, in conjunction with these meetings, 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.

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; the manner in which portfolio manager compensation is determined, the alignment of the interests of the Funds and of the portfolio managers and related potential conflicts of interest; the number and types of accounts managed by the portfolio managers; and other matters. During the course of their deliberations, the Independent Trustees met in executive sessions with their independent legal counsel, without representatives of the Investment Adviser or its affiliates present.

The presentations made at the Committee meetings and at the Annual Contract Meeting encompassed the Funds and other mutual fund portfolios for which the Board of Trustees has responsibility. While the management agreements for all of the Funds and the other mutual fund portfolios for which the Trustees have responsibility were considered at the same Annual Contract Meeting, the Trustees separately considered the Management Agreements as they applied to each Fund.

In evaluating the Management Agreements at the Annual Contract Meeting, the Trustees relied upon their knowledge, resulting from their meetings and other interactions throughout the year, of the Investment Adviser, its affiliates, their services and the Funds. At those meetings the Trustees regularly received materials relating to the

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

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

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

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

As part of their review, the Trustees considered the nature, extent and quality of the services provided by the Investment Adviser. In this regard, the Trustees considered both the investment advisory services, and the other, non-advisory services, that are provided to the Funds by the Investment Adviser and its affiliates. The Trustees concluded that, during the recent financial crisis, the Investment Adviser had demonstrated a willingness and an ability to commit substantial financial and other resources to the operations of the Funds and had represented that it will continue to commit those resources in multiple areas including portfolio management, trading, technology, human resources, tax, treasury, legal, compliance, valuation oversight, vendor oversight and risk management. The Independent Trustees also observed 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 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 over time on a year-by-year basis 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, 2008, to the extent that each Fund had been in existence for those periods. The Independent Trustees also compared the performance of the Enhanced Income and Short Duration Government Funds to that of the Investment Adviser’s institutional composites of the performance of other accounts having similar investment objectives and policies (the investment objectives and policies of the other Funds were not sufficiently similar to those of any of the Investment Adviser’s institutional composites). 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, market conditions, credit and duration parameters, and illiquidity in certain market sectors, 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 believed that each of the 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 Agreements. In this regard, the Trustees considered information on the services rendered by the Investment Adviser to the Funds, which included both advisory and administrative services that were directed to the needs and operations of the Funds as registered mutual funds.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

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

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 those of 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 Inflation Protected Securities Fund, since 2008), comparing each Fund’s expenses to the peer and 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 group and peer group median. 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 the management fee payable by the Enhanced Income and Inflation Protected Securities Funds, as well as Goldman Sachs’ voluntary undertaking to waive a portion of the Rule 12b-1 fees attributable to the Short Duration Government Fund’s Class B Shares. They also considered, to the extent that the Investment Adviser manages institutional accounts or collective investment vehicles having investment objectives and policies similar to those of the Funds, comparative fee information for services provided by the Investment Adviser to those accounts, and information that indicated that services provided to the Funds differed in various significant respects from the services provided to institutional accounts, which operated under less stringent legal and regulatory structures, were in some instances subject to different investment guidelines, required fewer services from the Investment Adviser to a smaller number of client contact points, 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 are able to redeem their Fund shares if they believe that the Fund fees and expenses are too high or if they are dissatisfied with the performance of the Fund.

Profitability

The Independent Trustees reviewed the Investment Adviser’s revenues and pre-tax profit margins with respect to the Trust and each of the Funds. In this regard the Independent Trustees reviewed, among other things, profitability analyses and summaries, revenue and expense schedules by Fund and by function (i.e., investment management, transfer agency and distribution and service) and the Investment Adviser’s expense allocation methodology. The Trustees also reviewed the report of the internal audit group within the Goldman Sachs organization, which included an assessment of the reasonableness and consistency of the Investment Adviser’s expense allocation methodology and an evaluation of the accuracy of the Investment Adviser’s profitability analysis calculations. Profitability data for the Trust and each Fund were provided for 2008 and 2007, and the Independent Trustees considered this information in relation to the Investment Adviser’s overall profitability. The Independent Trustees considered the Investment Adviser’s revenues and pre-tax profit margins both in absolute terms and in comparison to information on the reported pre-tax profit margins earned by certain other asset management firms.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

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

Economies of Scale

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


							Inflation			Short			Ultra-Short
	Enhanced			Government			Protected			Duration			Duration
Average Daily	Income			Income			Securities			Government			Government
Net Assets	Fund			Fund			Fund			Fund			Fund

First $1 billion		0.25	%		0.54	%		0.33	%		0.50	%		0.40	%
Next $1 billion		0.23			0.49			0.30			0.45			0.36
Next $3 billion		0.22			0.47			0.28			0.43			0.34
Next $3 billion		0.22			0.46			0.27			0.42			0.33
Over $8 billion		0.22			0.45			0.26			0.41			0.32

The Trustees noted that the breakpoints at the $5 and $8 billion asset levels had been proposed by the Investment Adviser and approved by the Trustees in 2008 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 would participate in the benefits of those economies. In this regard, the Independent Trustees considered the amounts of assets in the Funds; the Funds’ recent share purchase and redemption activity; the information provided by the Investment Adviser relating to the costs of the services provided by the Investment Adviser and its affiliates and their realized profits; information comparing fee rates charged by the Investment Adviser with fee rates charged to other funds in the peer group; and the voluntary undertakings of the Investment Adviser and Goldman Sachs to limit certain fees and other expenses to certain amounts. Upon reviewing these matters at the Annual Contract Meeting, 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; (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; (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; and (h) the Investment Adviser’s ability to leverage relationships with the Funds’ third party service providers to attract more firmwide business.

Other Benefits to the Funds and Their Shareholders

The Independent Trustees also noted that the Funds receive certain potential 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 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 advantages received from the Investment

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

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

Adviser’s knowledge and experience gained from managing other accounts and products; (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; (g) the Funds’ access, through the Investment Adviser, to certain firmwide resources (e.g., proprietary databases); and (h) the Funds’ access to certain affiliated distribution channels.

Conclusion

In connection with their consideration of the Management Agreements, the Independent Trustees gave weight to each of the factors described above, but did not identify any particular factor as controlling their decision. After deliberation and consideration of all of the information provided, including the factors described above, the Independent Trustees concluded, in the exercise of their business judgment, that the management fees paid by each of the Funds were reasonable in light of the services provided to it by the Investment Adviser, the Investment Adviser’s costs and each Fund’s current and reasonably foreseeable asset levels, and that the Management Agreements should be approved and continued with respect to each Fund until June 30, 2010.

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 $761 billion in assets under management as of June 30, 2009 — our investment professionals bring firsthand knowledge of local markets to every investment decision, Goldman Sachs Asset Management ranks in the top 10 asset management firms worldwide, based on assets under management.

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 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 n Credit Strategies Fund		Fundamental Equity n Growth and Income Fund n Structured Large Cap Value Fund n Large Cap Value 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 Structured Equity n Balanced Fund n Structured U.S. Equity Fund n Structured Large Cap Growth Fund n Small Cap Value Fund n Structured Small Cap Equity Fund n Structured Small Cap Value Fund n Structured Small Cap Growth Fund n Structured Tax-Managed Equity Fund n Structured International Tax- Managed Equity Fund n U.S. Equity Dividend and Premium Fund n International Equity Dividend and Premium Fund		Fund of Funds²n 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 Fundamental Equity International 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 BRIC Fund (Brazil, Russia, India, China) Select Satellite²n 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 Select Satellite 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 Select Satellite 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 Peter V. Bonanno, Secretary George F. Travers, Principal Financial Officer* Scott M. McHugh, Treasurer* * Effective October 16, 2009


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

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how a Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (I) without charge, upon request by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders); and (II) on the Securities and Exchange Commission Web site at http://www.sec.gov.

The Funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (”SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q will become available on the SEC’s website at http://www.sec.gov within 60 days after the Funds’ first and third fiscal quarters. When available, the Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. and information on the operation of the Public Reference Room may also be obtained by calling 1-800-SEC-0330. When available, Form N-Q may be obtained upon request and without charge by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders).

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

Economic and market forecasts presented herein reflect our judgment as of the date of this presentation and are subject to change without notice. These forecasts do not take into account the specific investment objectives, restrictions, tax and financial situation or other needs of any specific client. Actual data will vary and may not be reflected here. These forecasts are subject to high levels of uncertainty that may affect actual performance. Accordingly, these forecasts should be viewed as merely representative of a broad range of possible outcomes. These forecasts are estimated, based on assumptions, and are subject to significant revision and may change materially as economic and market conditions change. Goldman Sachs has no obligation to provide updates or changes to these forecasts. Case studies and examples are for illustrative purposes only.

This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus. Please consider a Fund’s objectives, risks, and charges and expenses, and read the Prospectus carefully before investing. The Prospectus contains this and other information about the Funds.

A Prospectus for the Funds containing more complete information may be obtained from your authorized dealer or from Goldman, Sachs & Co. by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders).


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 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


				Goldman Sachs Trust

				/s/ James A. McNamara

				By: James A. McNamara
				Chief Executive Officer of
				Goldman Sachs Trust

				Date: December 2, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


				/s/ James A. McNamara

				By: James A. McNamara
				Chief Executive Officer of
				Goldman Sachs Trust

				Date: December 2, 2009

				/s/ George F. Travers

				By: George F. Travers
				Chief Financial Officer of
				Goldman Sachs Trust

				Date: December 2, 2009

For the Six Months

For the

Ended September 30,

Periods Ended