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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05349

Goldman Sachs Trust

(Exact name of registrant as specified in charter)

71 South Wacker Drive, Chicago, Illinois 60606

(Address of principal executive offices) (Zip code)


Peter V. Bonanno, Esq.		Copies to:
Goldman, Sachs & Co.		Geoffrey R. T. Kenyon, Esq.
200 West Street		Dechert LLP
New York, New York 10282		200 Clarendon Street
		27^th Floor
		Boston, MA 02116-5021

(Name and address of agents for service)

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

Date of fiscal year end: March 31

Date of reporting period: September 30, 2010


ITEM 1.		REPORTS TO STOCKHOLDERS.

		The Semi-Annual Report to Stockholders is filed herewith.

Goldman Sachs Funds



Semi-Annual Report			September 30, 2010



			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 Review		4
Portfolio Management Discussions and Performance Summaries		6
Schedules of Investments		27
Financial Statements		52
Notes to Financial Statements		59
Financial Highlights		78
Other Information		88


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. 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. 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.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

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

Goldman Sachs Short Duration and
Government Fixed Income Funds

Market Review

The six months ended September 30, 2010 (the “Reporting Period”) brought the first signals of slowing momentum in global economic growth — a development that in our view was broadly consistent with the traditional cycle of recovery. After the recession ended in June 2009 (the date officially cited by the National Bureau of Economic Research), the world’s largest economies had begun to rebound. However, by the spring of 2010, global economic conditions showed signs of deterioration. The slowdown was most evident in the U.S. and China, raising concerns that the world’s two largest economies — both crucial sources of worldwide demand — might lead the global economy into a double-dip of the recession. Doubts about the sustainability of the global economic recovery drove sharp declines in government bond yields. In the U.S., for example, yields on 10-year Treasuries fell from 3.87% at the beginning of the Reporting Period to 2.51% on September 30, 2010.

During the second calendar quarter, the broader market impact of the economic slowdown was magnified by the sovereign debt crisis unfolding in Europe. Investors’ risk appetite suffered against this backdrop, and corporate bonds and emerging markets debt weakened in line with falling equity prices. By May, doubts about the solvency of peripheral European nations — Portugal, Italy, Ireland, Greece and Spain — had reached a fevered pitch. Those solvency concerns were based on high indebtedness and record budget deficits among the peripheral European nations. On April 27th, Greece’s debt rating was cut to junk by Standard & Poor’s, and risk premiums rose on Greek debt and on the sovereign debt of its similarly fiscally troubled neighbors, threatening a crisis. European lawmakers worked jointly with the International Monetary Fund (IMF) and the European Central Bank (ECB) to avert a liquidity crisis and to prevent contagion from spreading around the world through Europe’s still-fragile banking system. Although policymakers’ response succeeded in stabilizing peripheral European markets, volatility continued to flare intermittently through the end of the Reporting Period.

Riskier fixed income assets recovered during the third calendar quarter much of the ground they had lost in the months prior, and corporate bond markets experienced a record surge in new issuance. This rebound in risk appetite was helped by stronger economic signals. For example, reports of second quarter Gross Domestic Product (GDP) figures indicated that growth in the Eurozone had outstripped that of both the U.S. and Japan, primarily because of improved domestic demand among the largest European states and Germany’s exceptional exports strength. September’s economic data showed that while U.S. manufacturing and services activity had slowed, both sectors continued to expand. In China, expansion of its manufacturing sector seemed to be re-accelerating, judging by the most recently available purchasing managers survey. Still, economic growth remained below trend across the G-3 (the three largest developed economies — the U.S., Eurozone and Japan).

In the U.S., with consumer demand still weak and employment still declining, attention turned to the dwindling policy options for further stimulus. The increased focus on the widening fiscal deficit made substantial increases in government spending unlikely. Short-term interest rates had remained near zero for almost two years. During September, Federal Reserve (the “Fed”) policymakers began to demonstrate a clear willingness to revisit the exceptional bond-buying strategy it had halted earlier this year, thereby opening the door to a resumption of a second round of quantitative easing. As a result, by the end of the Reporting Period, U.S. markets were strongly positioned for more aggressive Treasury purchases by the Fed, and two-year Treasury yields had reached an all-time low near 0.5%.

MARKET REVIEW

Looking Ahead

During the Reporting Period, we grew increasingly convinced that the positives in the global economy outweigh the negatives and that economic growth will likely continue at a slow but steady pace. In the U.S., we believe the building blocks for growth are still in place and that downside risks are limited by two key factors. First, the Fed is likely, in our view, to resume quantitative easing, which should keep financial conditions highly accommodative. Second, leverage, or the use of borrowed money, in the U.S. private sector and financial system broadly has declined dramatically since 2008, and as such, we think the possibility of another severe pullback in either asset prices or employment is significantly reduced.

The biggest risk to continued economic recovery, in our view, is fiscal tightening in the U.S., where $270 billion of tax cuts and $75 billion of tax credits are scheduled to expire at the end of 2010. We estimate the expiration of these measures would be equivalent to approximately a 10% annualized decline in disposable income, or about 2% of GDP. If this scenario materializes, the risk of a double-dip recession in the U.S. may well rise. We further believe that a massive amount of quantitative easing from the Fed would be required to offset the impact of such a scenario on economic growth. However, that said, at the end of the Reporting Period, we considered this a low-probability risk and believed that a compromise would likely be reached to extend most of these tax measures for at least the next couple of years.

From an investment perspective, we think the slow but steady economic growth environment, combined with Fed asset purchases, favors overweight positions in high quality non-Treasury sectors. We anticipate that U.S. interest rates may stabilize as economic growth settles into a slower but steady range. Given our view that the Fed will resume quantitative easing, we favored an overweight position in the intermediate portion of the U.S. yield curve, or spectrum of maturities, at the end of the Reporting Period. In the intermediate, i.e. five- to ten-year, portion of the yield curve, we believe the likelihood of further quantitative easing reduces the downside risk of higher interest rates and increases the possibility of a stronger rally in rates than would be justified by economic fundamentals alone. We believe, however, that rates on 30-year maturities are likely to move higher on investor concerns about the potential long-term inflationary effect of more quantitative easing.

Against this backdrop, we saw value in high quality non-Treasury sectors, including corporate bonds and certain agency mortgage-backed securities. Yields on corporate bonds were low at the end of the Reporting Period, but the difference between yields on corporate bonds and U.S. Treasuries remained near long-term historical averages. As a result, we believe much of the yield on corporate bonds was compensation for credit risk, which, in our view, is low and declining given the prevalence of high corporate cash balances and cautious, credit-friendly business strategies.

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 Goldman Sachs Enhanced Income Fund’s performance and positioning for the six-month period ended September 30, 2010 (the “Reporting Period”).


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 0.13%, −0.34%, 0.30% and 0.18%, respectively. These returns compare to the 0.36% 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 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 0.21% and 0.51%, respectively, over the same time period.

The Fund’s Class IR Shares were launched on July 30, 2010. During the period from inception through September 30, 2010, the Fund’s Class IR Shares generated a cumulative total return, without sales charge, of 0.21%. This compares to the 0.10% cumulative total return of the Enhanced Income Composite 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 had an impact on the Fund’s performance during the Reporting Period. Within our top-down strategies, our cross-sector strategy contributed the most to relative performance. 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 corporate bond and government/agency sectors contributed positively.

The primary detractor from Fund performance was our duration strategy. Duration is a measure of the Fund’s sensitivity to changes in interest rates.


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

A	Exposure to debt backed by the FDIC (Federal Deposit Insurance Corporation) added value, especially in May, when the demand for debt with an explicit government guarantee peaked. At that time, a classic flight to quality took hold, as investor concerns regarding bank liquidity and the possible contagion effect of the sovereign credit risk of the peripheral European nations drove spreads, or the differential in yields between a particular sector’s securities and U.S. Treasuries, wider across markets. The markets experienced their largest correction since March 2009.

Selection of short-dated corporate bonds also contributed positively to Fund results during the Reporting Period, especially during the third calendar quarter. Sentiment in the corporate bond market showed signs of improvement, buoyed by the results of the European bank stress tests and strong corporate earnings reports. Technicals in the corporate bond market also bettered, as liquidity within the corporate bond sector hit an all-time high and credit metrics showed signs of improvement as companies repaired their balance sheets.

There were no real detractors from a sector allocation or security selection perspective 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	Tactical management of the Fund’s duration and yield curve positioning detracted from its results during the Reporting Period. During May, we held underweighted

PORTFOLIO RESULTS

positions in the five-year segment of the U.S. Treasury yield curve, as we believed contagion risk from the European bond markets, although contained, could lead to increased risk premia for all indebted sovereigns. The improving economic growth data in mid-May further backed our positioning decision. However, such positioning hurt performance as U.S. Treasury yields dropped sharply during the second calendar quarter. Volatility in the equity market together with the rising concern about the health of the European banking sector led to reduced investor risk appetite and higher demand for U.S. Treasury securities as a safe haven. As mentioned earlier, duration is a measure of the Fund’s sensitivity to changes in interest rates. Yield curve indicates the spectrum of maturities within a particular sector.


Q	How did the Fund use derivatives during the Reporting Period?

A	As a tool to get exposure to single name credits and to manage credit and interest rate risks, the Fund used Treasury and Eurodollar futures and credit default swaps during the Reporting Period. Through the use of Treasury and Eurodollar futures, we were able to implement security specific views in a cost effective manner. By using single name credit default swaps, we were able to gain exposure to single names when the opportunity to efficiently do so via cash bonds was not present in the secondary market.

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

A	During the Reporting Period, we increased the Fund’s allocation to investment grade corporate bonds. U.S. companies in particular have undertaken substantial balance sheet repair during the economic downturn. We expect them to maintain conservative balance sheets and lean operating structures in light of weak consumer confidence and increased regulatory pressures.

Q	How was the Fund positioned relative to its benchmark indices at the end of September 2010?

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 quasi-government securities, such as agency securities and government-guaranteed corporate bonds, as well as asset-backed securities and investment-grade corporate bonds. The Fund also had exposure to covered bonds. Covered bonds are securities created from either mortgage loans or public sector loans and make up one of the oldest and largest sectors of the European bond market. The Fund also had a position in cash at the end of the Reporting Period. The Fund maintained a modestly longer duration relative to the benchmark index at the end of the Reporting Period.

FUND BASICS

Enhanced Income Fund

as of September 30, 2010

PERFORMANCE REVIEW


	Fund Total			Six-Month			One-Year			Goldman Sachs			30-Day			30-Day
	Return			U.S.			U.S.			Enhanced			Standardized			Standardized
April 1, 2010–	(based on			Treasury			Treasury			Income Fund			Subsidized			Unsubsidized
September 30, 2010	NAV)¹			Bill Index²			Note Index²			Composite Index			Yield³			Yield³


Class A		0.13	%		0.21	%		0.51	%		0.36	%		0.31	%		0.31	%
Class B		-0.34			0.21			0.51			0.36			-0.43			-0.43
Institutional		0.30			0.21			0.51			0.36			0.65			0.65
Administration		0.18			0.21			0.51			0.36			0.40			0.40


July 30, 2010– September 30, 2010

Class IR		0.21	%		N/A			N/A			0.10	%		0.72	%		0.72	%


¹	The net asset value (“NAV”) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance assumes the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges.
²	The Six-Month U.S. Treasury Bill Index and One-Year U.S. Treasury Note Index, as reported by Merrill Lynch, do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged index.
³	The 30-Day Standardized Subsidized 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 (“POP”) 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. The 30-Day Standardized Unsubsidized Yield does not reflect any applicable expense reductions.

STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS⁴


For the period ended 9/30/10	One Year			Five Years			Ten Years			Since Inception			Inception Date


Class A		-0.78	%		2.73	%		2.88	%		2.95	%	8/2/00
Class B		-5.09			N/A			N/A			0.67		6/20/07
Institutional		1.10			3.44			3.41			3.48		8/2/00
Class IR		N/A			N/A			N/A			0.21		7/30/10
Administration		0.85			3.22			3.18			3.24		8/2/00

⁴

The Standardized Average Annual Total Returns are average annual total returns or cumulative total returns (only if the performance is one year or less) as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 1.5% for Class A Shares and the assumed contingent deferred sales charge for Class B Shares (5% maximum declining to 1% in the sixth year). Class B shares convert automatically to Class A shares on or about the fifteenth day of the last month of the calendar quarter that is eight years after purchase. Returns for Class B shares for the period after conversion reflect the performance of Class A shares. Because Institutional, Class IR and Administration Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns. Effective November 2, 2009, the Fund’s Class B Shares are no longer 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).

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 Website 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		0.63	%		0.68	%
Class B		1.38			1.43
Institutional		0.29			0.34
Class IR		0.38			0.43
Administration		0.54			0.59

⁵

The expense ratios of the Fund, both current (net of any fee waivers 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 Prospectus for the Fund and may differ from the expense ratios disclosed in the Financial Highlights in this report. The waivers and expense limitations may be modified or terminated in the future, consistent with the terms of any agreements in place. If this occurs, the expense ratios may change without shareholder approval.

FUND COMPOSITION⁶


⁶	The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. Short-term investments represent commercial paper and repurchase agreements. Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.
⁷	“Government Guarantee Obligations” are guaranteed under the Federal Deposit Insurance Corporation’s (“FDIC”) Temporary Liquidity Guarantee Program or a 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 and the expiration date of a foreign country guarantee is the maturity date of the debt.
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 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 Goldman Sachs Government Income Fund’s performance and positioning for the six-month period ended September 30, 2010 (the “Reporting Period”).


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

A	During the Reporting Period, the Fund’s Class A, B, C, Institutional, Service, IR and R Shares generated cumulative total returns, without sales charges, of 4.78%, 4.39%, 4.39%, 4.90%, 4.64%, 4.91% and 4.59%, respectively. These returns compare to the 5.30% cumulative total return of the Fund’s benchmark, the Barclays Capital 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 performance during the Reporting Period. Within our top-down strategies, our cross-sector strategy contributed the most to relative performance. 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 collateralized sector also was a key factor contributing positively to the Fund’s performance.

The primary detractor from Fund performance was its short U.S. duration bias relative to the Barclays Index, as interest rates declined during the Reporting Period. Duration is a measure of the Fund’s sensitivity to changes in interest rates.


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

A	Exposure to non-agency residential mortgage-backed securities (RMBS) was particularly beneficial during the Reporting Period. Despite a short-lived sell-off in May, non-agency RMBS performed strongly, driven by supportive supply and demand dynamics.

Individual issue selection of agency mortgage-backed securities contributed as well. During the latter part of the Reporting Period, mortgage rates reached historically low levels and concerns surrounding a refinancing wave and heightened prepayment risk mounted within the mortgage-backed securities sector. Against this backdrop, select agency mortgage-backed securities, such as low-loan balanced pools, outperformed securities more susceptible to prepayment risk. The Fund was positioned to benefit from such market conditions. Additionally, individual issue selection of other categories of agency bonds contributed positively to Fund results during the Reporting Period.

There were no real detractors from a sector allocation or security selection perspective during the Reporting Period.

PORTFOLIO RESULTS


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

A	The Fund’s shorter U.S. duration relative to the Barclays Index from May through July was the primary detractor from performance, as interest rates declined during the Reporting Period During the second and third calendar quarters, 10-year U.S. Treasury rates declined approximately 135 basis points to 2.51%, driven by reports pointing to weaker than expected economic data. During the third calendar quarter, the Fed’s decision to reinvest mortgage paydowns into U.S. Treasuries, together with the market speculating about an additional round of quantitative easing, or buying of U.S. Treasuries by the Fed, led yields even lower. Duration is a measure of the Fund’s sensitivity to changes in interest rates.

Q	How did the Fund use derivatives during the Reporting Period?

A	In seeking to achieve its investment objective, including the management and influence of duration and yield curve positioning, as market conditions warranted during the Reporting Period, the Fund utilized eurodollar futures, Treasury futures and interest rate swaps. For example, as market conditions shifted, such instruments helped us shorten and lengthen the duration of the Fund or to introduce a steepening or flattening yield curve bias within the Fund.

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

A	During the Reporting Period, we increased the Fund’s exposure to agency mortgage-backed securities from an underweighted position to an overweighted one. We reduced the Fund’s exposure to quasi-government securities, including agency securities and FDIC (Federal Deposit Insurance Corporation)-guaranteed corporate bonds. Toward the end of the Reporting Period, we shifted from a net short U.S. duration to a net long bias in U.S. duration.

Q	How was the Fund positioned relative to its benchmark index at the end of September 2010?

A	At the end of September 2010, the Fund had overweighted allocations relative to the Barclays Index in quasi-government securities, including government-guaranteed corporate bonds, as well as in RMBS and asset-backed securities. The Fund also had a modest exposure to commercial mortgage-backed securities (CMBS), which is a sector not represented in the Barclays Index. The Fund had an underweighted exposure relative to the benchmark index in U.S. government securities. The Fund maintained a modestly longer duration relative to the Barclays Index at the end of the Reporting Period.

FUND BASICS

Government Income Fund

as of September 30, 2010

PERFORMANCE REVIEW


							30-Day			30-Day
April 1, 2010–	Fund Total Return			Barclays Capital U.S.			Standardized			Standardized
September 30, 2010	(based on NAV)¹			Gov’t/Mortgage Index²			Subsidized Yield³			Unsubsidized Yield³


Class A		4.78	%		5.30	%		1.14	%		1.13	%
Class B		4.39			5.30			0.45			0.43
Class C		4.39			5.30			0.45			0.43
Institutional		4.90			5.30			1.53			1.51
Service		4.64			5.30			1.03			1.01
Class IR		4.91			5.30			1.44			1.42
Class R		4.59			5.30			0.94			0.92


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. Gov’t/Mortgage Index, an unmanaged index, does not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged index.
³	The 30-Day Standardized Subsidized 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 (“POP”) 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. The 30-Day Standardized Unsubsidized Yield does not reflect any applicable expense reductions.

STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS⁴


For the period ended 9/30/10	One Year			Five Years			Ten Years			Since Inception			Inception Date


Class A		2.29	%		4.57	%		5.26	%		5.73	%	2/10/93
Class B		0.36			4.19			5.01			5.46		5/1/96
Class C		4.47			4.59			4.87			4.86		8/15/97
Institutional		6.59			5.74			6.06			6.04		8/15/97
Service		6.06			5.22			5.53			5.51		8/15/97
Class IR		6.49			N/A			N/A			5.90		11/30/07
Class R		5.97			N/A			N/A			5.42		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). Class B Shares convert automatically to Class A Shares on or about the fifteenth day of the last month of the calendar quarter that is eight years after purchase. Returns for Class B Shares for the period after conversion reflect the performance of Class A Shares. Because Institutional, Service, Class IR and R Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns. Effective November 2, 2009, the Fund’s Class B Shares are no longer 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).

FUND BASICS

EXPENSE RATIOS⁵


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


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

⁵

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 Prospectus for the Fund and may differ from the expense ratios disclosed in the Financial Highlights in this report. The waivers and expense limitations may be modified or terminated in the future, consistent with the terms of any agreements in place. If this occurs, the expense ratios may change without shareholder approval.

FUND COMPOSITION⁶


⁶	The percentage shown for each investment category 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 guaranteed by Government National Mortgage Association (“GNMA”), Federal National Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corp. (“FHLMC”). GNMA instruments are backed by the full faith and credit of the U.S. Government.
⁸	“Government Guarantee Obligations” are guaranteed under the Federal Deposit Insurance Corporation’s (“FDIC”) Temporary Liquidity Guarantee Program or a 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 and the expiration date of a foreign country guarantee is the maturity date of the debt.
⁹	“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 like any other publicly traded company.

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 Goldman Sachs Inflation Protected Securities Fund’s performance and positioning for the six-month period ended September 30, 2010 (the “Reporting Period”).


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 6.78%, 6.37%, 6.94%, 6.91% and 6.64%, respectively. These returns compare to the 6.40% cumulative total return of the Fund’s benchmark, the Barclays Capital U.S. TIPS Index (“Barclays Index”) during the same time period.

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

A	Bottom-up individual issue selection of various maturity Treasury inflation protected securities (“TIPS”) was the key positive contributor to the Fund’s performance during the Reporting Period.


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

A	Individual issue selection of various maturity TIPS most significantly affected Fund performance, contributing positively during the Reporting Period. During the second calendar quarter, the Fund’s underweight exposure to specific shorter-term maturity TIPS added value, as break-even inflation in the short end declined sharply amid heightened concerns regarding a slowdown in global economic growth and subdued market expectations for inflationary pressures.

During the third calendar quarter, the Fund’s overweight exposure to specific TIPS in the 10-year maturity portion of the TIPS yield curve, or spectrum of maturities, contributed positively to the Fund’s results, as the longer-term end of break-even inflation gradually increased.

The break-even inflation rate is the difference between the nominal yield on a fixed-rate investment and the real yield on an inflation-linked investment of similar maturity and credit quality. If inflation averages more than the break-even, the inflation-linked investment will outperform the fixed-rate. Conversely, if inflation averages below the break-even, the fixed-rate will outperform the inflation-linked.

There were no real detractors from a sector allocation or security selection perspective 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 Fund’s shorter U.S. duration relative to the Barclays Index from May through July was the primary detractor from performance, as interest rates declined during the Reporting Period. During the second and third calendar quarters, 10-year U.S. Treasury rates declined approximately 135 basis points to 2.51%, driven by reports pointing to weaker than expected economic data. During the third calendar quarter, the Fed’s decision to reinvest mortgage paydowns into U.S. Treasuries, together with the market speculating about an additional round of quantitative easing, or buying of U.S. Treasuries by the Fed, led yields even lower. Duration is a measure of the Fund’s sensitivity to changes in interest rates.

PORTFOLIO RESULTS


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

A	Toward the end of the Reporting Period, we shifted from a net short U.S. duration to a net long bias in U.S. duration.

Q	How was the Fund positioned relative to its benchmark index at the end of September 2010?

A	At the end of September 2010, the Fund had approximately 98% of its total net assets invested in TIPS, with the remainder in cash or invested in cash equivalents. The Fund maintained a modestly longer duration relative to the benchmark index at the end of the Reporting Period.

FUND BASICS

Inflation Protected Securities Fund

as of September 30, 2010

PERFORMANCE REVIEW


							30-Day			30-Day
April 1, 2010–	Total Return			Barclays Capital			Standardized			Standardized
September 30, 2010	(based on NAV)¹			U.S. TIPS Index²			Subsidized Yield³			Unsubsidized Yield³


Class A		6.78	%		6.40	%		1.46	%		1.46	%
Class C		6.37			6.40			0.77			0.77
Institutional		6.94			6.40			1.85			1.85
Class IR		6.91			6.40			1.76			1.76
Class R		6.64			6.40			1.27			1.26


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 Subsidized 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 (“POP”) 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. The 30-Day Standardized Unsubsidized Yield does not reflect any applicable expense reductions.

STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS⁴


For the period ended 9/30/10	One Year			Since Inception			Inception Date


Class A		4.81	%		5.67	%	8/31/07
Class C		7.13			6.31		8/31/07
Institutional		9.33			7.47		8/31/07
Class IR		9.24			5.74		11/30/07
Class R		8.60			5.24		11/30/07

⁴

FUND BASICS

EXPENSE RATIOS⁵


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


Class A		0.67	%		0.91	%
Class C		1.42			1.66
Institutional		0.33			0.57
Class IR		0.42			0.66
Class R		0.92			1.16

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 Prospectus for the Fund and may differ from the expense ratios disclosed in the Financial Highlights in this report. Applicable waivers and expense limitations may be modified or terminated in the future, consistent with the terms of any agreements in place. If this occurs, the expense ratios may change without shareholder approval.

FUND COMPOSITION⁶


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 assessments. 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 was 9.2 and 9.3 years, respectively, at September 30, 2010 and March 31, 2010.

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 Goldman Sachs Short
Duration Government Fund’s performance and positioning for the six-month period ended September 30, 2010 (the “Reporting Period”).


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 1.16%, 0.89%, 0.88%, 1.33%, 1.08% and 1.29%, respectively. These returns compare to the 1.69% cumulative total return of the Fund’s benchmark, the Two-Year U.S. Treasury Note Index (“Two-Year Treasury Note Index”), during the same time period. To compare, the Barclays Capital U.S. Government Bond Index (1-3 Year) returned 1.80% for the Reporting Period.

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

A	Both top-down and bottom-up strategies had an impact on the Fund’s performance during the Reporting Period. Bottom-up individual issue selection within the government/agency and agency mortgage-backed securities sectors contributed positively. Within our top-down strategies, our duration and cross-sector strategies detracted. 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.

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

A	Exposure to debt backed by the FDIC (Federal Deposit Insurance Corporation) added value, especially in May, when the demand for debt with an explicit government guarantee peaked. Conversely, an overweighted allocation to agency securities detracted from returns. In both cases, the results were due to a classic flight to quality that took hold, as investor concerns regarding bank liquidity and the possible contagion effect of the sovereign credit risk of the peripheral European nations drove spreads, or the differential in yields between a particular sector’s securities and U.S. Treasuries, wider across markets. The markets experienced their largest correction since March 2009.

An overweighted exposure to agency mortgage-backed securities also detracted from Fund performance, specifically during August and September. This underperformance was due primarily to heightened concerns regarding the increased potential for a wave of refinancing, which could ultimately result in a significant uptick in prepayments.


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

A	Tactical management of the Fund’s duration and yield curve positioning detracted from its results during the Reporting Period. During May, we held underweighted positions in the five-year and seven-year segments of the U.S. Treasury yield curve, as we believed contagion risk from the European bond markets, although contained, could lead to increased risk premia for all indebted sovereigns. The improving economic growth data in mid-May further backed our positioning decision. However, such positioning hurt performance as U.S. Treasury yields dropped sharply during the second calendar quarter. Volatility in the equity market together with the rising concern about the health of the European banking sector led to reduced investor risk appetite and higher demand for U.S. Treasury securities as a safe haven. As mentioned earlier, duration is a measure of the Fund’s sensitivity to changes in interest rates. Yield curve indicates the spectrum of maturities within a particular sector.

PORTFOLIO RESULTS


Q	How did the Fund use derivatives during the Reporting Period?

A	In seeking to achieve its investment objective, including the management and influence of duration and yield curve positioning, as market conditions warranted during the Reporting Period, the Fund utilized eurodollar futures, Treasury futures and interest rate swaps. For example, as market conditions shifted, such instruments helped us shorten and lengthen the duration of the Fund or to introduce a steepening or flattening yield curve bias within the Fund.

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

A	During the Reporting Period, we increased the Fund’s allocation to U.S. Treasury securities but maintained an underweighted position compared to the Bank of America Merrill Lynch Two-Year U.S. Treasury Note Index.

Q	How was the Fund positioned relative to its benchmark index at the end of September 2010?

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 quasi-government securities, such as agency securities and government-guaranteed corporate bonds, as well as residential mortgage-backed securities. The Fund maintained a modestly longer duration relative to the benchmark index at the end of the Reporting Period.

FUND BASICS

Short Duration Government Fund

as of September 30, 2010

PERFORMANCE REVIEW


							30-Day			30-Day
April 1, 2010–	Fund Total Return			Two-Year U.S.			Standardized			Standardized
September 30, 2010	(based on NAV)¹			Treasury Note Index²			Subsidized Yield³			Unsubsidized Yield³


Class A		1.16	%		1.69	%		-0.03	%		-0.05	%
Class B		0.89			1.69			-0.51			-0.65
Class C		0.88			1.69			-0.51			-0.79
Institutional		1.33			1.69			0.30			0.28
Service		1.08			1.69			-0.19			-0.21
Class IR		1.29			1.69			0.22			0.20


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 Bank of America Merrill Lynch, does not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged index.
³	The 30-Day Standardized Subsidized 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 (“POP”) 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. The 30-Day Standardized Unsubsidized Yield does not reflect any applicable expense reductions.

STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS⁴


For the period ended 9/30/10	One Year			Five Years			Ten Years			Since Inception			Inception Date


Class A		0.92	%		4.62	%		4.51	%		4.66	%	5/1/97
Class B		-0.15			4.31			4.15			4.41		5/1/97
Class C		1.14			4.19			3.89			3.90		8/15/97
Institutional		2.72			5.30			5.04			5.93		8/15/88
Service		2.31			4.79			4.53			4.77		4/10/96
Class IR		2.72			N/A			N/A			5.22		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). Class B Shares convert automatically to Class A Shares on or about the fifteenth day of the last month of the calendar quarter that is eight years after purchase. Returns for Class B Shares for the period after conversion reflect the performance of Class A Shares. Because Institutional, Service, Class IR and R Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns. Effective November 2, 2009, the Fund’s Class B Shares are no longer 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).

FUND BASICS

EXPENSE RATIOS⁵


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


Class A		0.84	%		0.88	%
Class B		1.44			1.63
Class C		1.59			1.63
Institutional		0.50			0.54
Service		1.00			1.04
Class IR		0.59			0.63

⁵

FUND COMPOSITION⁶


⁶	The percentage shown for each investment category 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	“Government Guarantee Obligations” are guaranteed under the Federal Deposit Insurance Corporation’s (“FDIC”) Temporary Liquidity Guarantee Program or a 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 and the expiration date of a foreign country guarantee is the maturity date of the debt.
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 like any other publicly traded company.
⁹	Federal Agencies are mortgage-backed securities guaranteed by Government National Mortgage Association (“GNMA”), Federal National Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corp. (“FHLMC”). GNMA instruments are backed by the full faith and credit of the U.S. Government.

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 Goldman Sachs Ultra-Short Duration Government Fund’s performance and positioning for the six-month period ended September 30, 2010 (the “Reporting Period”).


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 −0.30%, −0.01%, −0.26% and −0.06%, respectively. These returns compare to the 0.36% cumulative total return of the Goldman Sachs Ultra-Short Duration Government Fund Composite Index (the “Ultra-Short Duration Government Composite Index”) during the same period. The Ultra-Short Duration Government Composite Index 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 0.21% and 0.51%, 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 had an impact on the Fund’s performance during the Reporting Period. Bottom-up individual issue selection within the government/agency and agency mortgage-backed securities sectors contributed positively. Within our top-down strategies, our duration and cross-sector strategies detracted. 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.

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

A	Our selection of high coupon pass-through mortgage-backed securities and of agency adjustable-rate mortgages (ARMs) added value. Agency ARMs performed well during the Reporting Period given their limited uncertainty for credit-related prepayments.

Conversely, an overweighted allocation to agency securities detracted from returns. Spreads, or the differential in yields between a particular sector’s securities and U.S. Treasuries, widened across markets as investor concerns regarding bank liquidity and the possible contagion effect of the sovereign credit risk of the peripheral European nations drove the largest market correction since March 2009.


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

A	Tactical management of the Fund’s duration and yield curve positioning detracted from its results during the Reporting Period. During May, we held underweighted positions in the five-year and seven-year segments of the U.S. Treasury yield curve, as we believed contagion risk from the European bond markets, although contained, could lead to increased risk premia for all indebted sovereigns. The improving economic growth data in mid-May further backed our positioning decision. However, such positioning hurt performance as U.S. Treasury yields

PORTFOLIO RESULTS

dropped sharply during the second calendar quarter. Volatility in the equity market together with the rising concern about the health of the European banking sector led to reduced investor risk appetite and higher demand for U.S. Treasury securities as a safe haven. As mentioned earlier, duration is a measure of the Fund’s sensitivity to changes in interest rates. Yield curve indicates the spectrum of maturities within a particular sector.


Q	How did the Fund use derivatives during the Reporting Period?

A	In seeking to achieve its investment objective, including the management and influence of duration and yield curve positioning, as market conditions warranted during the Reporting Period, the Fund utilized eurodollar futures, Treasury futures and interest rate swaps. For example, as market conditions shifted, such instruments helped us shorten and lengthen the duration of the Fund or to introduce a steepening or flattening yield curve bias within the Fund.

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

A	During the Reporting Period, we shifted from a net short duration to a net long bias in duration, as we believe that there is an increased likelihood that the Fed will resume quantitative easing efforts given soft economic data releases during the Reporting Period.

Q	How was the Fund positioned relative to its benchmark index at the end of September 2010?

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 quasi-government securities, such as agency securities and government-guaranteed corporate bonds, as well as asset-backed securities and RMBS. The Fund maintained a modestly longer duration relative to the benchmark index at the end of the Reporting Period.

FUND BASICS

Ultra-Short Duration Government Fund

as of September 30, 2010

PERFORMANCE REVIEW


	Fund Total			Six-Month			One-Year			30-Day			30-Day
April 1, 2010–	Return			U.S. Treasury			U.S. Treasury			Standardized			Standardized
September 30, 2010	(based on NAV)¹			Bill Index²			Note Index²			Subsidized Yield³			Unsubsidized Yield³


Class A		-0.30	%		0.21	%		0.51	%		0.14	%		0.16	%
Institutional		-0.01			0.21			0.51			0.47			0.50
Service		-0.26			0.21			0.51			-0.02			0.01
Class IR		-0.06			0.21			0.51			0.38			0.41


¹	The net asset value (“NAV”) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance assumes the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges.
²	The Six-Month U.S. Treasury Bill Index and One-Year U.S. Treasury Note Index, as reported by Merrill Lynch, do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged index.
³	The 30-Day Standardized Subsidized 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 (“POP”) 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. The 30-Day Standardized Unsubsidized Yield does not reflect any applicable expense reductions.

STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS⁴


For the period ended 9/30/10	One Year			Five Years			Ten Years			Since Inception			Inception Date


Class A		-1.15	%		2.11	%		2.63	%		3.57	%	5/15/95
Institutional		0.65			2.77			3.17			4.20		7/17/91
Service		0.14			2.27			2.69			3.20		3/27/97
Class IR		0.56			N/A			N/A			1.13		11/30/07

⁴

FUND BASICS

EXPENSE RATIOS⁵


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


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

⁵

FUND BASICS

FUND COMPOSITION⁶


⁶	The percentage shown for each investment category 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	“Government Guarantee Obligations” are guaranteed under the Federal Deposit Insurance Corporation’s (“FDIC”) Temporary Liquidity Guarantee Program or a 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 and the expiration date of a foreign country guarantee is the maturity date of the debt.
⁸	Federal Agencies are mortgage-backed securities guaranteed by Government National Mortgage Association (“GNMA”), Federal National Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corp. (“FHLMC”). GNMA instruments are backed by the full faith and credit of the U.S. Government.


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

GOLDMAN SACHS ENHANCED INCOME FUND

Schedule of Investments

September 30, 2010 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Obligations – 39.1%


	Banks – 14.6%
	ANZ National (International) Ltd.^(a)
	$	3,675,000		6.200	%		07/19/13	$	4,084,318
	Bank of New York Mellon Corp.^(b)
		2,000,000		0.390			03/23/12		1,992,684
	Bank of Nova Scotia^(a)
		14,000,000		1.450			07/26/13		14,151,396
	Bank of Tokyo-Mitsubishi UFJ Ltd.^(a)
		5,125,000		2.600			01/22/13		5,282,563
	Barclays Bank PLC
		3,225,000		5.450			09/12/12		3,492,694
	BB&T Corp.
		2,725,000		3.850			07/27/12		2,848,292
	Canadian Imperial Bank of Commerce^(a)
		10,500,000		2.000			02/04/13		10,767,204
		1,600,000		2.600			07/02/15		1,664,792
	Cie de Financement Foncier^(a)
		4,800,000		1.625			07/23/12		4,819,608
		3,000,000		2.125			04/22/13		3,054,381
	Credit Suisse New York
		3,675,000		3.450			07/02/12		3,809,640
	Intesa Sanpaolo New York
		11,700,000		2.375			12/21/12		11,715,374
	JPMorgan Chase & Co.^(b)
		18,829,000		0.695			01/17/11		18,838,377
	JPMorgan Securities, Inc.
		3,000,000		0.653	^(b)		10/22/10		3,000,528
		4,025,000		6.950			08/10/12		4,454,674
	Keybank National Association
		450,000		7.300			05/01/11		463,335
	Lloyds TSB Bank PLC^(a)
		1,725,000		4.375			01/12/15		1,766,605
	PNC Funding Corp.^(b)
		1,376,000		0.615			01/31/12		1,371,481
	Rabobank Nederland^(a)
		5,900,000		2.650			08/17/12		6,090,222
		4,675,000		4.200			05/13/14		4,980,885
	Royal Bank of Scotland PLC^(a)
		2,975,000		4.875			08/25/14		3,156,088
	Sovereign Bank
		5,848,000		5.125			03/15/13		6,077,963
	Stadshypotek AB^(a)
		7,700,000		1.450			09/30/13		7,725,156
	Standard Chartered PLC^(a)
		3,625,000		3.850			04/27/15		3,781,020
	UBS AG
		5,200,000		2.250			08/12/13		5,244,795
	Wachovia Corp.
		1,925,000		0.656	^(b)		10/15/11		1,926,698
		5,127,000		5.500			05/01/13		5,652,859
	Westpac Banking Corp.
		9,225,000		2.250			11/19/12		9,383,729

									151,597,361


	Brokerage – 0.5%
	Morgan Stanley & Co.
		600,000		0.775	^(b)		01/18/11		599,995
		1,350,000		5.050			01/21/11		1,367,813
		2,750,000		6.750	^(c)		04/15/11		2,832,445

									4,800,253


	Captive Financial – 0.3%
	American Express Centurion Bank
		623,000		5.200			11/26/10		626,906
	Caterpillar Financial Services Corp.
		725,000		4.850			12/07/12		778,946
	John Deere Capital Corp.
		1,775,000		5.250			10/01/12		1,924,825

									3,330,677


	Electric – 2.1%
	Carolina Power & Light Co.^(c)
		3,140,000		6.500			07/15/12		3,429,015
	Enel Finance International SA^(a)(c)
		6,375,000		5.700			01/15/13		6,876,987
	Georgia Power Co.^(c)
		3,925,000		1.300			09/15/13		3,934,275
	Pacific Gas & Electric Co.^(c)
		725,000		4.200			03/01/11		735,863
	Public Service Co. of Colorado^(c)
		2,325,000		7.875			10/01/12		2,626,929
	Southern Co.
		3,500,000		0.918	^(b)		10/21/11		3,512,019
		875,000		4.150	^(c)		05/15/14		944,247

									22,059,335


	Energy – 2.3%
	BP Capital Markets PLC
		2,675,000		3.125			10/01/15		2,689,052
	ConocoPhillips
		1,200,000		9.375			02/15/11		1,239,956
	EnCana Corp.^(c)
		1,525,000		6.300			11/01/11		1,604,567
		625,000		4.750			10/15/13		680,435
	Shell International Finance BV^(c)
		12,800,000		1.875			03/25/13		13,067,516
	Statoil ASA^(a)(c)
		3,470,000		5.125			04/30/14		3,900,790
	StatoilHydro ASA^(c)
		650,000		3.875			04/15/14		703,028

									23,885,344


	Food and Beverage – 1.2%
	Cargill, Inc.^(a)(c)
		4,650,000		5.200			01/22/13		5,039,847
	Diageo Finance BV
		3,700,000		5.500			04/01/13		4,088,707
	Kellogg Co.^(c)
		3,200,000		5.125			12/03/12		3,467,890

									12,596,444

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

GOLDMAN SACHS ENHANCED INCOME FUND

Schedule of Investments (continued)

September 30, 2010 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Corporate Obligations – (continued)

	Health Care Products^(c) – 1.1%
	St. Jude Medical, Inc.
	$	5,825,000		2.200	%		09/15/13	$	5,952,541
	Thermo Fisher Scientific, Inc.
		5,900,000		2.150			12/28/12		5,987,066

									11,939,607


	Health Care Services^(c) – 0.5%
	Covidien International Finance SA
		1,625,000		1.875			06/15/13		1,652,340
		2,525,000		2.800			06/15/15		2,606,150
	UnitedHealth Group, Inc.
		1,400,000		5.125			11/15/10		1,406,857

									5,665,347


	Life Insurance – 3.4%
	MassMutual Global Funding II^(a)(b)
		5,450,000		0.789			09/27/13		5,449,990
	Metropolitan Life Global Funding I^(a)
		3,400,000		5.125			11/09/11		3,532,053
		6,000,000		2.500			01/11/13		6,143,700
		1,725,000		5.125			04/10/13		1,877,481
		3,437,000		5.125			06/10/14		3,812,966
	Nationwide Life Global Funding I^(a)
		1,175,000		5.450			10/02/12		1,222,086
	Prudential Financial, Inc.
		3,625,000		5.800			06/15/12		3,875,106
		1,625,000		2.750			01/14/13		1,656,080
	Reinsurance Group of America, Inc.
		2,375,000		6.750			12/15/11		2,485,397
	Sun Life Financial Global Funding LP^(a)(b)
		3,750,000		0.784			10/06/13		3,645,574
	TIAA Global Markets, Inc.^(a)(c)
		1,900,000		5.125			10/10/12		2,056,176

									35,756,609


	Media^(c) – 0.1%
	The Walt Disney Co.
		1,100,000		4.700			12/01/12		1,191,264


	Media – Non Cable^(c) – 1.1%
	Reed Elsevier Capital, Inc.
		3,425,000		4.625			06/15/12		3,576,226
		4,050,000		7.750			01/15/14		4,726,982
	Thomson Reuters Corp.
		3,209,000		5.950			07/15/13		3,603,106

									11,906,314


	Noncaptive – Financial – 1.2%
	American Express Credit Corp.
		4,775,000		2.750			09/15/15		4,804,944
	General Electric Capital Corp.
		1,400,000		5.200			02/01/11		1,422,140
	HSBC Finance Corp.^(b)
		450,000		0.628			08/09/11		449,467
		2,000,000		0.768			04/24/12		1,983,616
		1,350,000		0.875			07/19/12		1,336,751
		2,775,000		0.642			09/14/12		2,729,440

									12,726,358


	Pharmaceuticals^(c) – 1.1%
	GlaxoSmithKline Capital, Inc.
		1,375,000		4.850			05/15/13		1,512,015
	Merck & Co., Inc.
		2,550,000		1.875			06/30/11		2,579,167
	Novartis Capital Corp.
		6,650,000		1.900			04/24/13		6,818,060

									10,909,242


	Pipelines – 0.1%
	TransCanada Pipelines Ltd.
		1,200,000		8.625			05/15/12		1,343,497


	Property/Casualty Insurance^(c) – 0.4%
	The Chubb Corp.
		450,000		6.000			11/15/11		475,417
	The Travelers Cos., Inc.
		3,150,000		5.375			06/15/12		3,364,219

									3,839,636


	Real Estate Investment Trust^(c) – 0.8%
	Simon Property Group LP
		2,475,000		4.200			02/01/15		2,659,442
	WEA Finance LLC^(a)
		2,941,000		5.400			10/01/12		3,137,156
	WEA Finance LLC/WT Finance Australia Property Ltd.^(a)
		2,025,000		7.500			06/02/14		2,356,946

									8,153,544


	Retailers – 0.3%
	Wal-Mart Stores, Inc.
		2,400,000		3.200			05/15/14		2,579,312


	Software – 0.3%
	Microsoft Corp.
		2,800,000		2.950			06/01/14		2,977,388


	Technology^(c) – 2.0%
	Dell, Inc.
		1,425,000		3.375			06/15/12		1,482,623
		3,800,000		1.400			09/10/13		3,814,364
	Hewlett-Packard Co.
		1,600,000		2.250			05/27/11		1,620,981
		4,695,000		6.125			03/01/14		5,419,042
	International Business Machines Corp.
		2,545,000		6.500			10/15/13		2,955,396
	Oracle Corp.
		5,050,000		4.950			04/15/13		5,570,211

									20,862,617

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)

	Tobacco – 0.9%
	Philip Morris International, Inc.
	$	4,775,000		4.875	%		05/16/13	$	5,247,855
		3,300,000		6.875			03/17/14		3,880,249

									9,128,104


	Wireless Telecommunications – 3.2%
	ALLTEL Corp.
		1,350,000		6.500			11/01/13		1,526,323
	New Cingular Wireless Services, Inc.^(c)
		12,550,000		8.125			05/01/12		13,955,679
	Telefonica Emisiones SAU^(b)(c)
		2,150,000		0.775			02/04/13		2,104,631
	Verizon Wireless Capital LLC^(c)
		5,159,000		7.375			11/15/13		6,090,320
	Vodafone Group PLC^(c)
		4,325,000		5.350			02/27/12		4,566,388
		4,450,000		5.000			12/16/13		4,893,261

									33,136,602


	Wirelines Telecommunications^(c) – 1.6%
	Cellco Partnership/Verizon Wireless Capital LLC
		4,500,000		3.750			05/20/11		4,589,271
		2,025,000		5.250			02/01/12		2,142,079
	France Telecom SA
		5,175,000		7.750			03/01/11		5,326,860
		1,325,000		4.375			07/08/14		1,462,576
	Telefonica Emisiones SAU
		2,850,000		5.984			06/20/11		2,955,895

									16,476,681


	TOTAL CORPORATE OBLIGATIONS
	(Cost $396,881,325)							$	406,861,536




Agency Debentures – 3.8%


	FHLB^(b)
	$	37,000,000		0.497	%		10/13/11	$	37,004,107
	FNMA^(d)
		3,000,000		3.000			07/28/14		3,058,116


	TOTAL AGENCY DEBENTURES
	(Cost $40,052,954)							$	40,062,223




Asset-Backed Securities – 10.0%


	Autos – 4.0%
	Bank of America Auto Trust Series 2009-1A, Class A2^(a)
	$	917,407		1.700	%		12/15/11	$	917,737
	Bank of America Auto Trust Series 2009-2A, Class A3^(a)
		6,500,000		2.130			09/15/13		6,590,536
	Bank of America Auto Trust Series 2009-3A, Class A2^(a)
		8,448,337		0.890			04/15/12		8,455,412
	Capital One Prime Auto Receivables Trust Series 2007-2, Class A3
		3,298		4.890			01/15/12		3,303
	Chase Manhattan Auto Owner Trust Series 2006-B, Class A4
		260,633		5.110			04/15/14		260,974
	Ford Credit Auto Owner Trust Series 2009-B, Class A3
		15,000,000		2.790			08/15/13		15,246,649
	Ford Credit Auto Owner Trust Series 2009-E, Class A2
		9,328,332		0.800			03/15/12		9,335,338
	Harley-Davidson Motorcycle Trust Series 2006-2, Class A2
		178,625		5.350			03/15/13		181,428
	Long Beach Auto Receivables Trust Series 2006-A, Class A4
		735,061		5.500			05/15/13		749,485

									41,740,862


	Credit Card – 0.0%
	Bank of America Credit Card Trust Series 2006-A16, Class A16
		425,000		4.720			05/15/13		428,470


	Home Equity^(b) – 0.0%
	Aegis Asset Backed Securities Trust Series 2006-1, Class A1
		5,103		0.336			01/25/37		5,086
	Amresco Residential Securities Mortgage Loan Trust Series 1998-2, Class M1F
		32,264		6.745			06/25/28		24,187
	Centex Home Equity Series 2004-D, Class MV3
		189,136		1.256			09/25/34		32,536
	Morgan Stanley ABS Capital I Series 2004-HE4, Class M3
		61,061		1.756			05/25/34		10,418

									72,227


	Manufactured Housing – 0.0%
	Lehman ABS Manufactured Housing Contract Series 2001-B, Class A3
		76,234		4.350			05/15/14		73,710


	Student Loan – 6.0%
	Access Group, Inc. Series 2002-1, Class A2^(b)
		4,903,743		0.469			09/25/25		4,877,262
	Brazos Higher Education Authority, Inc. Series 2005-3, Class A14^(b)
		1,233,983		0.399			09/25/23		1,227,228
	College Loan Corp. Trust Series 2004-1, Class A3^(b)
		5,500,000		0.658			04/25/21		5,497,201
	College Loan Corp. Trust Series 2005-1, Class A2^(b)
		7,000,000		0.598			07/25/24		6,949,620
	College Loan Corp. Trust Series 2005-2, Class A2^(b)
		6,531,689		0.636			10/15/21		6,486,564
	Collegiate Funding Services Education Loan Trust I Series 2003-A, Class A2^(b)
		2,014,867		0.589			09/28/20		2,014,734
	Education Funding Capital Trust I Series 2004-1, Class A2^(b)
		2,011,123		0.452			12/15/22		1,974,232
	Educational Services of America, Inc. Series 2010-1, Class A1^(a)(b)
		2,744,476		1.348			07/25/23		2,754,760
	GCO Slims Trust Series 2006-1A Class Note^(a)
		184,513		5.720			03/01/22		147,610

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

GOLDMAN SACHS ENHANCED INCOME FUND

Schedule of Investments (continued)

September 30, 2010 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Asset-Backed Securities – (continued)
	Student Loan – (continued)

	Nelnet Student Loan Corp. Series 2004-2A, Class A3^(b)
	$	1,627,806		0.418	%		11/25/15	$	1,626,256
	Northstar Education Finance, Inc. Series 2004-1, Class A3^(b)
		4,620,000		0.658			04/28/17		4,589,970
	Northstar Education Finance, Inc. Series 2005-1, Class A1^(b)
		678,250		0.588			10/28/26		674,143
	SLM Student Loan Trust Series 2004-9, Class A4^(b)
		3,405,248		0.628			04/25/17		3,402,370
	SLM Student Loan Trust Series 2007-1, Class A3^(b)
		6,500,000		0.528			07/25/18		6,473,585
	SLM Student Loan Trust Series 2007-2, Class A2^(b)
		5,076,746		0.498			07/25/17		5,050,848
	SLM Student Loan Trust Series 2008-6, Class A1^(b)
		2,680,869		0.898			10/27/14		2,683,892
	Sun Trust Student Loan Trust Series 2006-1A, Class A2^(a)(b)
		4,630,188		0.588			07/28/20		4,613,204
	US Education Loan Trust LLC Series 2006-1, Class A2^(a)(b)
		1,160,056		0.427			03/01/25		1,150,950

									62,194,429


	TOTAL ASSET-BACKED SECURITIES
	(Cost $104,525,672)							$	104,509,698




Foreign Debt Obligations – 4.2%


	Sovereign – 2.6%
	Kommunalbanken AS
	$	11,900,000		5.125	%		05/30/12	$	12,762,101
	Landeskreditbank Baden-Wuerttemberg Foerderbank
		7,340,000		3.250			10/29/10		7,352,551
		5,600,000		0.697	^(b)		11/04/11		5,583,126
	Oesterreichische Kontrollbank AG
		1,500,000		2.875			03/15/11		1,516,359

									27,214,137


	Supranational – 1.6%
	European Investment Bank
		10,000,000		2.625			05/16/11		10,140,300
		6,250,000		0.594	^(b)		03/05/12		6,281,175

									16,421,475


	TOTAL FOREIGN DEBT OBLIGATIONS
	(Cost $43,328,218)							$	43,635,612




Government Guarantee Obligations – 35.0%


	Achmea Hypotheekbank NV^(a)(b)(e)
	$	8,200,000		0.804	%		11/03/14	$	8,176,884
	ANZ National (International) Ltd.^(a)(e)
		4,700,000		0.615	^(b)		08/05/11		4,703,793
		5,800,000		3.250			04/02/12		6,026,948
	Bank of America Corp.^(b)(f)
		18,200,000		1.116			12/02/11		18,397,070
		19,200,000		0.490			06/22/12		19,282,022
	Bank of America NA^(b)(f)
		4,000,000		0.470			12/23/10		4,005,244
	BRFkredit A/S^(a)(b)(e)
		10,800,000		0.776			04/15/13		10,800,705
	Citibank NA^(f)
		1,000,000		1.875			05/07/12		1,021,584
	Citigroup Funding, Inc.^(f)
		17,000,000		0.805	^(b)		04/30/12		17,098,141
		14,700,000		1.875			11/15/12		15,085,518
	Citigroup, Inc.^(b)(f)
		2,600,000		0.842			12/09/10		2,603,518
	Danske Bank AS^(a)(e)
		5,200,000		2.500			05/10/12		5,325,421
	FIH Erhvervsbank AS^(a)(e)
		5,500,000		2.450			08/17/12		5,640,301
		5,700,000		0.523	^(b)		12/06/12		5,698,438
	General Electric Capital Corp.^(f)
		9,000,000		0.493	^(b)		03/12/12		9,056,997
		3,400,000		2.000			09/28/12		3,494,760
		5,000,000		0.292	^(b)		12/21/12		5,002,195
		9,000,000		2.625			12/28/12		9,396,002
	ING Bank NV^(a)(e)
		9,500,000		1.218	^(b)		02/09/12		9,514,193
		10,900,000		2.625			02/09/12		11,141,402
	JPMorgan Chase & Co.^(b)(f)
		1,600,000		0.419			02/23/11		1,601,016
	Kreditanstalt fuer Wiederaufbau^(e)
		22,200,000		3.250			02/15/11		22,456,787
	Landwirtschaftliche Rentenbank^(e)
		3,500,000		3.125			06/15/11		3,564,285
		8,500,000		1.875			09/24/12		8,696,302
		2,400,000		4.125			07/15/13		2,606,722
		6,500,000		4.875			01/10/14		7,286,597
	LeasePlan Corp. NV^(a)(e)
		1,800,000		3.000			05/07/12		1,859,954
	Morgan Stanley & Co.^(b)(f)
		13,900,000		0.691			02/10/12		13,960,201
		6,300,000		0.641			06/20/12		6,348,901
	Royal Bank of Scotland PLC^(a)(e)
		10,800,000		1.500			03/30/12		10,875,596
		2,700,000		1.098	^(b)		05/11/12		2,715,485
	Societe Financement de l’Economie Francaise^(a)(e)
		15,700,000		1.500			10/29/10		15,711,438
		14,100,000		2.000			02/25/11		14,198,827
		2,525,000		2.125			01/30/12		2,576,396
	Suncorp-Metway Ltd.^(a)(b)(e)
		7,500,000		0.667			12/17/10		7,500,027
		15,350,000		1.776			04/15/11		15,443,973
	SunTrust Bank^(b)(f)
		4,500,000		0.942			12/16/10		4,506,237
	Swedbank AB^(a)(e)
		3,000,000		1.261	^(b)		02/10/12		2,998,491
		8,700,000		2.800			02/10/12		8,957,111
	The Huntington National Bank^(b)(f)
		18,700,000		0.697			06/01/12		18,871,703
	United States Central Federal Credit Union^(f)
		2,300,000		1.900			10/19/12		2,360,179

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

GOLDMAN SACHS ENHANCED INCOME FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Government Guarantee Obligations – (continued)

	Westpac Banking Corp.^(a)(e)
	$	10,500,000		3.250	%		12/16/11	$	10,809,645
		7,200,000		1.900			12/14/12		7,361,561


	TOTAL GOVERNMENT GUARANTEE OBLIGATIONS
	(Cost $362,038,105)							$	364,738,570




U.S. Treasury Obligations – 3.8%


	United States Treasury Inflation Protected Securities
	$	26,799,984		2.375	%		04/15/11	$	27,147,580
		11,397,594		3.000			07/15/12		12,106,410


	TOTAL U.S. TREASURY OBLIGATIONS
	(Cost $39,162,130)							$	39,253,990


	TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENT
	(Cost $985,988,404)							$	999,061,629




Short-term Investments – 2.1%


	Commercial Paper – 1.6%
	Banco Santander SA
	$	16,000,000		0.700	%		11/09/10	$	16,000,000


	Repurchase Agreement^(g) – 0.5%
	Joint Repurchase Agreement Account II
		5,400,000		0.270	%		10/01/10		5,400,000
	Maturity Value: $5,400,041


	TOTAL SHORT-TERM INVESTMENTS
	(Cost $21,400,000)							$	21,400,000


	TOTAL INVESTMENTS – 98.0%
	(Cost $1,007,388,404)							$	1,020,461,629


	OTHER ASSETS IN EXCESS OF LIABILITIES – 2.0%								20,521,512


	NET ASSETS – 100.0%							$	1,040,983,141

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


(a)		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 $313,042,788, which represents approximately 30.1% of net assets as of September 30, 2010.

(b)		Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010.

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

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

(e)		Guaranteed by a foreign government until maturity. Total market value of these securities amounts to $212,647,282, which represents approximately 20.4% of net assets as of September 30, 2010.

(f)		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 these securities amounts to $152,091,288, which represents approximately 14.6% of net assets as of September 30, 2010.

(g)		Joint repurchase agreement was entered into on September 30, 2010. Additional information appears on pages 50-51.




Investment Abbreviations:
FHLB	—	Federal Home Loan Bank
FNMA	—	Federal National Mortgage Association

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

GOLDMAN SACHS ENHANCED INCOME FUND

Schedule of Investments (continued)

September 30, 2010 (Unaudited)

ADDITIONAL INVESTMENT INFORMATION

FUTURES CONTRACTS — At September 30, 2010, the following futures contracts were open:


	Number of
	Contracts			Expiration	Current			Unrealized
Type	Long (Short)			Date	Value			Gain (Loss)

Eurodollars		418		December 2010	$	104,123,800		$	288,860
Eurodollars		197		March 2011		49,048,075			61,119
Eurodollars		(267	)	June 2011		(66,426,262	)		(682,655	)
Eurodollars		(267	)	September 2011		(66,362,850	)		(863,410	)
Eurodollars		(267	)	December 2011		(66,282,750	)		(1,016,175	)
Eurodollars		(291	)	March 2012		(72,142,538	)		(1,232,077	)
Eurodollars		(122	)	June 2012		(30,199,575	)		(566,030	)
Eurodollars		(98	)	September 2012		(24,221,925	)		(477,995	)
Eurodollars		(98	)	December 2012		(24,179,050	)		(497,595	)
2 Year U.S. Treasury Notes		378		December 2010		82,965,094			159,793
5 Year U.S. Treasury Notes		(832	)	December 2010		(100,561,500	)		(695,890	)


TOTAL								$	(5,522,055	)

SWAP CONTRACTS — At September 30, 2010, the Fund had outstanding swap contracts with the following terms:

CREDIT DEFAULT SWAP CONTRACTS


									Credit
				Rates					Spread at					Upfront
		Notional		received					September 30,					Payments made
	Referenced	Amount		(paid) by			Termination		2010		Market			(received) by			Unrealized
Counterparty	Obligation	(000s)		Fund			Date		(basis points)^(a)		Value			the Fund			Gain (Loss)

Protection Sold:
JPMorgan Securities, Inc.	Johnson & Johnson 5.150%, 08/15/12	$	6,000		1.000	%		06/20/12		23	$	81,883		$	76,342		$	5,541
	Pacific Gas and Electric Co. 4.800%, 03/01/14		4,850		1.000			06/20/13		109		(10,154	)		(34,394	)		24,240


TOTAL											$	71,729		$	41,948		$	29,781


(a)	Credit spread on the Referenced Obligation, together with the term of the swap contract, are indicators of payment/performance risk. The likelihood of a credit event occurring which would require a fund to make a payment or otherwise be required to perform under the swap contract is generally greater as the credit spread and the term of the swap contract increase.

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

GOLDMAN SACHS GOVERNMENT INCOME FUND

Schedule of Investments

September 30, 2010 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – 49.3%


	Collateralized Mortgage Obligations – 3.2%
	Adjustable Rate Non-Agency^(a) – 0.6%
	Adjustable Rate Mortgage Trust Series 2004-5, Class 2A1
	$	81,551		3.080	%		04/25/35	$	73,972
	Bear Stearns Adjustable Rate Mortgage Trust Series 2003-05, Class 1A1
		27,013		3.075			08/25/33		23,687
	Chase Mortgage Finance Corp. Series 2007-A1, Class 3A1
		1,393,505		3.186			02/25/37		1,292,632
	Chase Mortgage Finance Corp. Series 2007-A1, Class 7A1
		786,573		2.926			02/25/37		792,025
	Countrywide Home Loan Mortgage Pass-Through Trust Series 2003-37, Class 1A1
		32,359		3.321			08/25/33		29,187
	CS First Boston Mortgage Securities Corp. Series 2003-AR9, Class 2A2
		132,518		2.632			03/25/33		113,191
	First Horizon Asset Securities Series, Inc. 2004-AR6, Class 2A1
		51,356		2.987			12/25/34		48,807
	JPMorgan Mortgage Trust Series 2005-A4, Class 2A1
		419,522		2.903			07/25/35		381,805
	MLCC Mortgage Investors, Inc. Series 2004-E, Class A2B
		1,168,682		0.794			11/25/29		1,006,491
	Sequoia Mortgage Trust Series 2004-09, Class A2
		697,940		0.768			10/20/34		568,081
	Structured Adjustable Rate Mortgage Loan Trust Series 2004-05, Class 1A
		208,553		2.651			05/25/34		187,542
	Structured Adjustable Rate Mortgage Loan Trust Series 2004-12, Class 3A2
		73,284		2.716			09/25/34		66,408
	Structured Asset Securities Corp. Series 2003-34A, Class 3A3
		803,922		2.660			11/25/33		715,640
	Washington Mutual Mortgage Pass-Through Certificates Series 2004-AR03, Class A2
		198,276		2.707			06/25/34		192,420

									5,491,888


	Interest Only^(b) – 0.0%
	CS First Boston Mortgage Securities Corp. Series 2003-AR18, Class 2X^(a)(c)
		84,914		0.000			07/25/33		—
	CS First Boston Mortgage Securities Corp. Series 2003-AR20, Class 2X^(a)(c)
		115,743		0.000			08/25/33		—
	FNMA REMIC Series 2004-47, Class EI^(a)(c)
		1,734,641		0.000			06/25/34		15,197
	FNMA REMIC Series 2004-62, Class DI^(a)(c)
		760,348		0.000			07/25/33		4,648
	FNMA REMIC Series 2004-71, Class DI^(a)(c)
		1,556,448		0.000			04/25/34		5,869
	FNMA STRIPS Series 151, Class 2
		13,372		9.500			07/25/22		2,785
	Master Adjustable Rate Mortgages Trust Series 2003-2, Class 3AX^(a)
		40,486		0.120			08/25/33		123
	Master Adjustable Rate Mortgages Trust Series 2003-2, Class 4AX^(a)
		18,144		0.320			07/25/33		110

									28,732


	Inverse Floaters^(a) – 0.1%
	GNMA Series 2001-48, Class SA
		49,436		25.651			10/16/31		76,328
	GNMA Series 2001-51, Class SA
		38,544		31.385			10/16/31		63,019
	GNMA Series 2001-51, Class SB
		48,369		25.651			10/16/31		77,654
	GNMA Series 2001-59, Class SA
		43,004		25.489			11/16/24		65,985
	GNMA Series 2002-13, Class SB
		169,497		36.366			02/16/32		304,444

									587,430


	Principal Only^(d) – 0.0%
	FNMA REMIC Series G-35, Class N
		13,256		0.000			10/25/21		12,591


	Regular Floater^(a) – 1.1%
	BCAP LLC Trust Series 2006-RR1, Class CF
		416,976		0.896			11/25/36		391,986
	FHLMC REMIC Series 1760, Class ZB
		387,343		2.010			05/15/24		391,353
	FNMA REMIC Series 2006-68, Class FM
		9,380,375		0.706			08/25/36		9,368,473

									10,151,812


	Sequential Fixed Rate – 1.3%
	FHLMC REMIC Series 2329, Class ZA
		2,401,418		6.500			06/15/31		2,661,059
	FHLMC REMIC Series 2590, Class NV
		2,000,000		5.000			03/15/18		2,202,157
	FNMA REMIC Series 2001-53, Class GH
		285,274		8.000			09/25/16		313,524
	GNMA Series 2002-42 Class KZ
		6,208,113		6.000			06/16/32		6,974,803

									12,151,543


	Sequential Floating Rate^(a)(e) – 0.1%
	FDIC Structured Sale Guaranteed Notes Series 2010-S1, Class 1A
		834,693		0.806			02/25/48		836,893



	TOTAL COLLATERALIZED
	MORTGAGE OBLIGATIONS							$	29,260,889


	Commercial Mortgage-Backed Securities – 0.9%
	Interest Only^(a)(b)(e) – 0.0%
	Bear Stearns Commercial Mortgage Securities, Inc. Series 2003-T10, Class X2
	$	13,124,137		1.375	%		03/13/40	$	79,455
	JPMorgan Chase Commercial Mortgage Securities Corp. Series 2004-C1, Class X2
		12,036,553		1.104			01/15/38		40,769

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

GOLDMAN SACHS GOVERNMENT INCOME FUND

Schedule of Investments (continued)

September 30, 2010 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

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

	Prudential Commercial Mortgage Trust Series 2003-PWR1, Class X2
	$	14,247,247		1.666	%		02/11/36	$	86,073

									206,297


	Sequential Fixed Rate – 0.9%
	GMAC Commercial Mortgage Securities, Inc. Series 2002-C1, Class A2
		8,000,000		6.278			11/15/39		8,315,900



	TOTAL COMMERCIAL MORTGAGE-
	BACKED SECURITIES							$	8,522,197


	Federal Agencies – 45.2%
	Adjustable Rate FHLMC^(a) – 0.6%
	$	226,953		2.861	%		11/01/32	$	238,163
		2,624,700		2.749			09/01/33		2,757,931
		2,613,748		2.632			08/01/35		2,746,041

									5,742,135


	Adjustable Rate FNMA^(a) – 1.6%
		219,381		2.839			11/01/32		229,130
		444,291		2.785			12/01/32		463,663
		2,907,428		1.924			05/01/33		2,986,770
		67,257		2.592			06/01/33		70,613
		2,673,026		3.919			10/01/33		2,783,117
		2,868,597		2.577			02/01/35		3,009,087
		2,319,736		3.895			09/01/35		2,425,335
		2,525,195		5.212			06/01/37		2,652,249

									14,619,964


	Adjustable Rate GNMA^(a) – 0.7%
		139,761		3.375			06/20/23		144,493
		64,099		3.625			07/20/23		65,857
		66,941		3.625			08/20/23		68,731
		174,798		3.625			09/20/23		179,484
		52,064		3.375			03/20/24		53,732
		444,609		3.375			04/20/24		460,313
		54,385		3.375			05/20/24		56,270
		466,024		3.375			06/20/24		482,770
		252,513		3.625			07/20/24		260,566
		340,268		3.625			08/20/24		350,510
		109,380		3.625			09/20/24		112,405
		130,668		3.125			11/20/24		134,975
		117,957		3.125			12/20/24		123,049
		91,147		3.375			01/20/25		94,646
		45,845		3.375			02/20/25		47,670
		154,424		3.375			05/20/25		160,871
		115,447		3.625			07/20/25		119,606
		57,593		3.375			02/20/26		59,537
		3,226		3.625			07/20/26		3,320
		167,277		3.375			01/20/27		173,498
		58,270		3.375			02/20/27		60,220
		454,214		3.375			04/20/27		470,999
		50,344		3.375			05/20/27		52,208
		49,864		3.375			06/20/27		51,711
		17,868		3.125			11/20/27		18,412
		72,931		3.125			12/20/27		75,067
		138,794		3.375			01/20/28		143,514
		48,238		3.250			02/20/28		49,878
		54,960		3.375			03/20/28		56,896
		265,632		3.625			07/20/29		273,830
		113,635		3.625			08/20/29		117,145
		33,572		3.625			09/20/29		34,611
		138,691		3.125			10/20/29		142,740
		177,560		3.125			11/20/29		182,834
		41,276		3.125			12/20/29		42,483
		54,799		3.250			01/20/30		56,659
		29,550		3.250			02/20/30		30,555
		117,449		3.250			03/20/30		121,440
		168,126		3.375			04/20/30		174,580
		436,916		3.375			05/20/30		455,189
		35,905		3.375			06/20/30		37,295
		349,496		3.625			07/20/30		363,588
		61,425		3.625			09/20/30		63,907
		117,954		2.875			10/20/30		121,164
		237,161		3.000			03/20/32		244,510

									6,593,738


	FHLMC – 7.3%
		282,779		6.500			12/01/13		306,048
		6,073		6.500			02/01/14		6,573
		1,758,568		7.500			11/01/14		1,893,107
		2,717		7.000			02/01/15		2,937
		71,268		8.000			07/01/15		77,253
		10,697		7.000			01/01/16		11,523
		30,253		7.000			09/01/17		33,607
		14,123		7.000			10/01/17		15,682
		180,852		5.500			05/01/18		195,999
		1,519,794		5.500			06/01/18		1,645,770
		56,802		4.500			09/01/18		60,296
		18,839		10.000			10/01/18		20,234
		351,596		5.000			06/01/19		375,453
		57,113		10.000			07/01/20		62,318
		75,261		10.000			10/01/20		82,237
		173,037		6.500			07/01/21		191,332
		12,715		6.500			08/01/22		14,057
		138,617		9.000			10/01/22		160,396
		989,192		4.500			10/01/23		1,053,674
		554,940		6.500			07/01/28		590,758
		5,178		8.000			07/01/30		5,807
		32,063		7.500			12/01/30		35,756
		145,832		7.000			04/01/31		161,907
		1,313,759		6.000			05/01/33		1,438,823
		1,041,491		6.000			10/01/34		1,134,696
		3,211,345		4.500			10/01/35		3,359,546
		180,799		5.000			12/01/35		192,402
		712,430		5.500			01/01/36		763,692
		1,658		5.500			02/01/36		1,777
		19,718		6.000			06/01/36		21,465
		193,199		5.500			02/01/38		204,789
		147,287		5.000			04/01/38		156,832
		12,185,035		6.000			11/01/38		13,348,801
		552,322		5.500			12/01/38		585,283

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)

	$	137,350		5.500	%		02/01/39	$	145,547
		1,194,385		5.000			03/01/39		1,276,043
		2,099,153		5.000			04/01/39		2,240,436
		759,399		5.000			05/01/39		814,308
		2,059,141		5.000			06/01/39		2,208,027
		457,250		5.000			07/01/39		490,312
		484,379		5.000			08/01/39		518,436
		5,500,310		4.500			09/01/39		5,795,620
		2,661,831		5.000			09/01/39		2,851,437
		1,923,689		5.000			10/01/39		2,057,256
		1,994,203		5.000			11/01/39		2,128,422
		670,750		5.000			12/01/39		715,895
		3,100,812		5.000			01/01/40		3,315,744
		184,083		4.500			02/01/40		194,092
		2,339,256		5.000			03/01/40		2,508,395
		1,829,117		4.500			04/01/40		1,928,574
		2,264,989		5.000			04/01/40		2,428,758
		3,137,875		4.500			05/01/40		3,308,497
		1,626,441		4.500			06/01/40		1,714,878
		2,500,000		4.500			09/01/40		2,602,761

									67,454,268


	FNMA – 24.6%
		30,736		7.000			03/01/14		33,349
		52,593		7.000			03/01/15		56,338
		16,252		8.000			01/01/16		17,701
		77,153		6.000			11/01/16		83,404
		234,372		8.000			11/01/16		267,133
		431,370		5.000			08/01/17		455,165
		581,134		5.000			02/01/18		620,758
		2,256,768		5.000			03/01/18		2,410,646
		706,822		5.000			04/01/18		755,017
		140,593		4.500			05/01/18		149,331
		869,885		5.000			05/01/18		929,198
		311,312		4.500			06/01/18		330,999
		1,146,132		5.000			06/01/18		1,224,280
		62,291		4.500			07/01/18		66,163
		73,444		5.000			07/01/18		78,452
		95,257		4.500			08/01/18		101,177
		53,545		5.000			08/01/18		57,196
		829,750		5.000			09/01/18		886,569
		4,314,221		5.000			10/01/18		4,609,560
		36,789		5.000			11/01/18		39,298
		571,051		5.000			01/01/19		610,764
		64,876		5.000			02/01/19		69,351
		1,521,794		5.000			04/01/19		1,625,557
		377,574		5.000			05/01/19		403,831
		1,550,993		5.000			06/01/19		1,656,747
		248,443		6.500			08/01/19		271,342
		1,653,084		6.000			09/01/19		1,789,292
		25,505		9.500			08/01/20		25,759
		26,102		9.500			10/01/20		26,536
		2,043,608		6.000			12/01/20		2,211,993
		63,196		6.000			05/01/21		68,509
		23,025		6.000			07/01/21		24,961
		660,606		6.000			09/01/21		716,151
		61,086		6.000			09/01/22		66,188
		1,687,917		5.500			02/01/23		1,813,361
		1,037,988		6.000			02/01/23		1,124,676
		2,550,564		5.500			08/01/23		2,740,119
		565,697		6.000			11/01/28		623,646
		23,503		6.500			11/01/28		26,028
		1,318		5.500			04/01/29		1,417
		48,598		7.000			11/01/30		54,549
		189,991		7.000			07/01/31		210,601
		661		6.000			03/01/32		728
		16,919,772		5.500			04/01/33		18,159,675
		43,767		6.000			05/01/33		47,973
		22,239		5.000			07/01/33		23,588
		4,200,815		5.500			07/01/33		4,472,132
		238,629		5.000			08/01/33		253,107
		3,671,338		4.500			09/01/33		3,863,445
		23,696		5.000			09/01/33		25,138
		25,118		5.500			09/01/33		26,955
		24,387		5.000			11/01/33		25,871
		15,180		5.000			12/01/33		16,104
		18,469		6.000			12/01/33		20,220
		14,718		5.000			01/01/34		15,614
		31,326		5.500			02/01/34		33,612
		5,130		5.500			04/01/34		5,504
		26,890		5.500			05/01/34		28,852
		1,111		5.500			06/01/34		1,191
		42,498		5.500			08/01/34		45,599
		2,670		5.500			10/01/34		2,862
		317,010		5.500			12/01/34		339,547
		19,864		5.000			03/01/35		20,983
		29,652		5.000			04/01/35		31,323
		45,406		5.500			04/01/35		48,634
		1,235,065		6.000			04/01/35		1,356,621
		19,594		5.000			05/01/35		20,728
		257,856		5.000			07/01/35		272,555
		40,779		5.500			07/01/35		43,641
		746,276		5.000			08/01/35		789,227
		4,452		5.500			08/01/35		4,764
		2,485		6.000			08/01/35		2,701
		193,834		5.000			09/01/35		204,757
		41,851		5.500			09/01/35		44,970
		65,542		5.000			10/01/35		69,235
		468,986		6.000			10/01/35		509,920
		79,890		5.000			11/01/35		84,391
		395,770		6.000			11/01/35		427,815
		20,629		5.500			12/01/35		22,096
		950		5.500			02/01/36		1,020
		314,511		6.000			03/01/36		342,264
		397,410		6.000			04/01/36		432,494
		36,202		5.000			07/01/36		38,242
		440,650		6.000			09/01/36		481,616
		407,911		6.000			11/01/36		440,574
		717,314		6.000			12/01/36		783,553
		680,413		6.000			01/01/37		738,908
		4,888		5.500			02/01/37		5,235
		109,358		5.500			04/01/37		117,334

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

GOLDMAN SACHS GOVERNMENT INCOME FUND

Schedule of Investments (continued)

September 30, 2010 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date			Value

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

	$	9,253		5.500	%		05/01/37		$	9,909
		3,592		5.500			06/01/37			3,845
		139,444		6.000			06/01/37			149,716
		23,531		6.000			07/01/37			25,322
		515		5.500			08/01/37			552
		510,265		6.000			08/01/37			547,854
		357,142		6.000			09/01/37			383,452
		1,041,434		6.000			10/01/37			1,120,501
		1,334,141		6.000			11/01/37			1,432,733
		1,209,490		7.500			11/01/37			1,344,316
		1,202,657		5.500			12/01/37			1,279,530
		1,192,300		6.000			12/01/37			1,280,788
		2,517,856		5.500			01/01/38			2,677,647
		321,131		6.000			01/01/38			345,130
		3,669		5.500			02/01/38			3,928
		57,646		5.500			03/01/38			61,735
		203,602		6.000			03/01/38			218,736
		150,962		5.500			04/01/38			162,024
		1,585,800		5.500			05/01/38			1,687,469
		2,568,213		5.500			06/01/38			2,730,950
		497,561		5.500			07/01/38			529,276
		309,753		6.000			07/01/38			332,503
		15,335		5.500			08/01/38			16,425
		41,331		6.000			08/01/38			44,407
		10,087		5.500			09/01/38			10,804
		187,439		6.000			10/01/38			201,452
		5,193		5.500			12/01/38			5,563
		128,350		5.000			01/01/39			137,179
		540,549		5.000			02/01/39			577,972
		57,447		5.500			02/01/39			61,819
		1,571,524		4.500			03/01/39			1,659,247
		537,687		5.000			03/01/39			574,673
		67,406		5.000			04/01/39			72,042
		291,624		4.500			05/01/39			307,265
		1,009,821		5.000			05/01/39			1,081,807
		179,053		4.500			06/01/39			189,048
		143,383		5.000			06/01/39			153,494
		294,633		4.500			07/01/39			311,079
		1,415,296		5.000			07/01/39			1,515,860
		930,728		4.500			08/01/39			982,160
		6,960,607		5.000			08/01/39			7,454,838
		145,876		5.500			08/01/39			155,185
		931,666		4.500			09/01/39			983,672
		7,533,002		5.000			09/01/39			8,066,594
		1,937,805		4.500			10/01/39			2,042,627
		6,367,680		5.000			10/01/39			6,821,544
		2,000,000		5.500			10/01/39			2,127,250
		882,257		4.500			11/01/39			931,092
		406,542		5.000			11/01/39			435,333
		2,826,734		4.500			12/01/39			2,980,629
		5,819,985		5.000			12/01/39			6,222,504
		1,306,102		4.500			01/01/40			1,377,334
		2,560,441		5.000			01/01/40			2,748,026
		527,698		4.500			02/01/40			557,037
		558,090		5.000			02/01/40			598,397
		130,833		4.500			03/01/40			138,136
		983,351		5.000			03/01/40			1,055,911
		495,570		4.500			04/01/40			523,233
		764,341		4.500			05/01/40			807,007
		52,222		4.500			06/01/40			55,138
		3,983,196		5.000			07/01/40			4,195,662
		2,989,252		4.500			09/01/40			3,116,367
		2,000,000		3.000			TBA-15yr	^(f)		2,010,625
		15,000,000		3.500			TBA-15yr	^(f)		15,410,860
		4,000,000		3.500			TBA-30yr	^(f)		4,029,688
		22,000,000		5.500			TBA-30yr	^(f)		23,383,593
		39,000,000		6.000			TBA-30yr	^(f)		41,839,668

										228,374,592


	GNMA – 10.4%
		260		9.000			08/15/16			288
		237,490		7.000			12/15/27			268,724
		29,823		6.500			08/15/28			33,757
		356,921		6.000			01/15/29			390,485
		279,382		7.000			10/15/29			316,117
		3,914,774		5.500			12/15/32			4,233,301
		8,836,750		5.000			05/15/33			9,466,170
		5,307,060		5.000			06/15/33			5,685,069
		17,594,375		5.000			07/15/33			18,847,581
		2,169,793		5.000			09/15/33			2,324,342
		3,520,136		5.000			03/15/34			3,765,568
		2,106,421		5.500			06/15/34			2,274,616
		14,954		5.000			05/15/39			16,089
		94,399		4.500			06/15/39			100,244
		92,245		5.000			07/15/39			98,814
		93,650		4.500			10/15/39			99,448
		47,000,000		4.000			TBA-30yr	^(f)		48,546,485

										96,467,098


	TOTAL FEDERAL AGENCIES								$	419,251,795


	TOTAL MORTGAGE-BACKED OBLIGATIONS
	(Cost $442,664,028)								$	457,034,881




Agency Debentures – 8.5%


	FFCB
	$	9,000,000		4.750	%		11/06/12		$	9,767,988
	FHLB
		10,000,000		5.375	^(g)		06/13/14			11,504,872
	FHLMC
		5,100,000		5.050			01/26/15			5,861,200
		9,400,000		1.750			09/10/15			9,493,032
		9,100,000		3.800			03/09/16			9,235,211
	FNMA
		2,600,000		3.000			07/28/14			2,650,367
		9,100,000		3.000			01/28/15			9,173,027
		10,000,000		3.000			02/17/15			10,098,192
	New Valley Generation III
		3,521,598		4.929			01/15/21			3,937,618

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

GOLDMAN SACHS GOVERNMENT INCOME FUND


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Agency Debentures – (continued)

	Small Business Administration
	$	207,447		6.700	%		12/01/16	$	224,932
		137,387		7.150			03/01/17		150,943
		108,330		7.500			04/01/17		118,300
		56,761		7.300			05/01/17		61,498
		45,384		6.800			08/01/17		49,820
		167,641		6.300			05/01/18		183,078
		100,929		6.300			06/01/18		110,395
	Tennessee Valley Authority
		1,400,000		4.625			09/15/60		1,458,456
	Tennessee Valley Authority Series B
		4,200,000		4.375			06/15/15		4,737,860


	TOTAL AGENCY DEBENTURES
	(Cost $75,316,877)							$	78,816,789




Asset-Backed Securities – 1.9%


	Home Equity^(a) – 0.4%
	Bear Stearns Adjustable Rate Mortgage Trust Series 2004-1, Class 21A1
	$	100,037		2.616	%		04/25/34	$	90,319
	Citigroup Mortgage Loan Trust, Inc. Series 2004-OPT1, Class A2
		511,511		0.616			10/25/34		455,346
	Household Home Equity Loan Trust Series 2007-3, Class APT
		2,776,024		1.457			11/20/36		2,538,951
	Securitized Asset Backed Receivables LLC Trust Series 2004-OP2, Class A2
		21,324		0.606			08/25/34		16,427

									3,101,043


	Manufactured Housing – 0.0%
	Mid-State Trust Series 4, Class A
		151,009		8.330			04/01/30		150,761


	Student Loan^(a) – 1.5%
	Brazos Higher Education Authority, Inc. Series 2005-3, Class A14
		1,145,841		0.399			09/25/23		1,139,569
	Education Funding Capital Trust I Series 2004-1, Class A2
		1,608,898		0.452			12/15/22		1,579,386
	Goal Capital Funding Trust Series 10-1, Class A^(e)
		3,481,589		0.964			08/25/48		3,442,479
	Knowledgeworks Foundation Student Loan Series 2010-1, Class A
		1,300,000		1.242			02/25/42		1,283,911
	Missouri Higher Education Loan Authority Student Loan Series 2010, Class A-1
		3,289,897		1.268			11/26/32		3,297,950
	Nelnet Student Loan Trust Series 2010-3A, Class A^(e)
		1,600,000		1.212			07/27/48		1,603,716
	Northstar Education Finance, Inc. Series 2005-1, Class A1
		581,356		0.588			10/28/26		577,837


	US Education Loan Trust LLC Series 2006-1, Class A2^(e)
		1,113,650		0.427			03/01/25		1,104,909

									14,029,757


	TOTAL ASSET-BACKED SECURITIES
	(Cost $17,549,016)							$	17,281,561



		��
Government Guarantee Obligations^(h) – 11.9%


	Ally Financial, Inc.
	$	15,000,000		1.750	%		10/30/12	$	15,352,216
		20,000,000		2.200			12/19/12		20,684,742
	Citigroup Funding, Inc.
		20,700,000		1.875			10/22/12		21,237,720
		8,000,000		1.875			11/15/12		8,209,806
	General Electric Capital Corp.
		12,900,000		2.000			09/28/12		13,259,531
		14,500,000		0.292	^(a)		12/21/12		14,506,365
		9,100,000		2.125			12/21/12		9,397,878
	Private Export Funding Corp.
		7,000,000		3.550			04/15/13		7,486,913


	TOTAL GOVERNMENT GUARANTEE OBLIGATIONS
	(Cost $107,882,514)							$	110,135,171




U.S. Treasury Obligations – 20.6%


	United States Treasury Bonds
	$	370,000		4.500	%		02/15/36	$	425,442
		4,100,000		4.375			11/15/39		4,600,323
		8,200,000		4.375			05/15/40		9,209,419
		10,900,000		3.875			08/15/40		11,269,620
	United States Treasury Inflation Protected Securities
		14,388,516		2.375			04/15/11		14,575,135
		12,246,351		3.000			07/15/12		13,007,952
		462,628		2.375			01/15/25		531,986
		582,157		2.000			01/15/26		640,145
	United States Treasury Notes
		45,000,000		1.000			04/30/12		45,452,699
		5,700,000		0.625			06/30/12		5,723,199
		6,500,000		3.000			08/31/16		7,014,864
		22,500,000		3.000			09/30/16		24,273,676
		9,600,000		3.125			10/31/16		10,421,279
		2,500,000		3.250			12/31/16		2,728,700
		4,000,000		2.750			02/15/19		4,149,160
		18,650,000		3.625			08/15/19		20,508,846
	United States Treasury Principal-Only STRIPS^(d)
		7,100,000		0.000			08/15/20		5,397,136
		12,900,000		0.000			05/15/21		9,484,467
		3,000,000		0.000			11/15/21		2,151,720


	TOTAL U.S. TREASURY OBLIGATIONS
	(Cost $185,265,976)							$	191,565,768

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

GOLDMAN SACHS GOVERNMENT INCOME FUND

Schedule of Investments (continued)

September 30, 2010 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Municipal Debt Obligation – 0.2%


	New Jersey – 0.2%
	New Jersey Economic Development Authority Series A (MBIA)
	$	2,000,000		7.425	%		02/15/29	$	2,336,600
	(Cost $2,000,000)


	TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENT
	(Cost $830,678,411)							$	857,170,770




Short-term Investment⁽ⁱ⁾ – 22.5%


	Repurchase Agreement – 22.5%
	Joint Repurchase Agreement Account II
	$	208,600,000		0.270	%		10/01/10	$	208,600,000
	Maturity Value: $208,601,565
	(Cost $208,600,000)


	TOTAL INVESTMENTS – 114.9%
	(Cost $1,039,278,411)							$	1,065,770,770


	LIABILITIES IN EXCESS OF OTHER ASSETS – (14.9)%								(138,181,229	)


	NET ASSETS – 100.0%							$	927,589,541

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, 2010.

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

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

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

(e)		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 $7,194,294, which represents approximately 0.8% of net assets as of September 30, 2010.

(f)		TBA (To Be Announced) Securities are purchased/sold 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 $135,220,919, which represents approximately 14.6% of net assets as of September 30, 2010.

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

(h)		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.

(i)		Joint repurchase agreement was entered into on September 30, 2010. Additional information appears on pages 50-51.




	Investment Abbreviations:
	FDIC	—	Federal Deposit Insurance Corp.
	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 Insurance
	REMIC	—	Real Estate Mortgage Investment Conduit
	STRIPS	—	Separate Trading of Registered Interest and Principal of Securities

ADDITIONAL INVESTMENT INFORMATION

FORWARD SALES CONTRACTS — At September 30, 2010, the Fund had the following forward sales contracts:


	Interest			Maturity	Settlement		Principal
Description	Rate			Date^(f)	Date		Amount			Value

FHLMC		4.500	%	TBA-30yr		10/13/10	$	(2,000,000	)	$	(2,079,531	)
FNMA		4.500		TBA-30yr		10/13/10		(1,000,000	)		(1,041,563	)


TOTAL (Proceeds Receivable: $3,119,922)										$	(3,121,094	)

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

GOLDMAN SACHS GOVERNMENT INCOME FUND


ADDITIONAL INVESTMENT INFORMATION (continued)

FUTURES CONTRACTS — At September 30, 2010, the following futures contracts were open:


	Number of
	Contracts			Expiration	Current			Unrealized
Type	Long (Short)			Date	Value			Gain (Loss)

Eurodollars		13		December 2010	$	3,238,300		$	16,543
Eurodollars		(24	)	March 2011		(5,975,400	)		(6,954	)
Eurodollars		(24	)	June 2011		(5,970,900	)		(9,954	)
Eurodollars		(24	)	September 2011		(5,965,200	)		(12,954	)
Eurodollars		(24	)	December 2011		(5,958,000	)		(17,654	)
Eurodollars		(24	)	March 2012		(5,949,900	)		(20,854	)
2 Year U.S. Treasury Notes		36		December 2010		7,901,437			15,131
5 Year U.S. Treasury Notes		796		December 2010		96,210,282			338,462
10 Year U.S. Treasury Notes		714		December 2010		89,997,469			834,809
30 Year U.S. Treasury Bonds		164		December 2010		21,929,875			103,820


TOTAL								$	1,240,395

SWAP CONTRACTS — At September 30, 2010, the Fund had outstanding swap contracts with the following terms^(a):

INTEREST RATE SWAP CONTRACTS


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

Credit Suisse First Boston Corp.	$	12,400		08/15/17	3 month LIBOR		2.252	%	$	(120,490	)
Deutsche Bank Securities, Inc.		10,100		08/15/17	3 month LIBOR		2.241			(91,167	)
		11,300		08/15/17	3 month LIBOR		2.113			(11,491	)
JPMorgan Securities, Inc.		11,400		08/15/17	3 month LIBOR		2.161			(45,512	)


TOTAL									$	(268,660	)


*		There are no upfront payments on the swap contract(s), therefore the unrealized gain (loss) of the swap contract(s) is equal to their market value.
(a)		Represents forward starting interest rate swaps whose effective dates of commencement of accruals and cash flows occur subsequent to September 30, 2010.

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

GOLDMAN SACHS INFLATION PROTECTED SECURITIES FUND

Schedule of Investments

September 30, 2010 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

U.S. Treasury Obligations – 98.4%


	United States Treasury Inflation Protected Securities
	$	2,855,736		2.375	%		04/15/11	$	2,892,775
		33,950,280		3.000			07/15/12		36,061,648
		24,214,800		1.875			07/15/13		25,735,780
		10,618,830		2.000			01/15/14		11,382,005
		6,077,767		1.250			04/15/14		6,389,253
		10,062,159		2.000			07/15/14		10,881,319
		7,397,412		1.875			07/15/15		8,041,793
		4,942,845		2.000			01/15/16		5,417,052
		5,937,305		2.500			07/15/16		6,723,998
		3,891,780		2.375			01/15/17		4,386,768
		3,681,580		2.625			07/15/17		4,244,748
		8,270,343		1.875			07/15/19		9,165,856
		21,342,528		1.250			07/15/20		22,394,650
		21,165,231		2.375			01/15/25		24,338,365
		22,627,246		2.000	^(a)		01/15/26		24,881,123
		9,188,925		2.375			01/15/27		10,606,748
		5,619,456		1.750			01/15/28		5,956,185
		6,200,340		3.625			04/15/28		8,293,438
		7,107,940		2.500			01/15/29		8,385,151
		8,472,660		2.125			02/15/40		9,467,537


	TOTAL U.S. TREASURY OBLIGATIONS
	(Cost $235,584,273)							$	245,646,192




Short-term Investment^(b) – 1.7%


	Repurchase Agreement – 1.7%
	Joint Repurchase Agreement Account II
	$	4,200,000		0.270	%		10/01/10	$	4,200,000
	Maturity Value: $4,200,032
	(Cost $4,200,000)


	TOTAL INVESTMENTS – 100.1%
	(Cost $239,784,273)							$	249,846,192


	LIABILITIES IN EXCESS OF OTHER ASSETS – (0.1)%								(136,852	)


	NET ASSETS – 100.0%							$	249,709,340

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


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

(b)		Joint repurchase agreement was entered into on September 30, 2010. Additional information appears on pages 50-51.

ADDITIONAL INVESTMENT INFORMATION

FUTURES CONTRACTS — At September 30, 2010, the following futures contracts were open:


	Number of
	Contracts			Expiration	Current			Unrealized
Type	Long (Short)			Date	Value			Gain (Loss)

Eurodollars		(15	)	December 2010	$	(3,736,500	)	$	(3,034	)
Eurodollars		(15	)	March 2011		(3,734,625	)		(4,346	)
Eurodollars		(15	)	June 2011		(3,731,813	)		(6,221	)
Eurodollars		(15	)	September 2011		(3,728,250	)		(8,096	)
Eurodollars		(15	)	December 2011		(3,723,750	)		(11,034	)
Eurodollars		(15	)	March 2012		(3,718,687	)		(13,034	)
5 Year U.S. Treasury Notes		76		December 2010		9,185,906			67,161
10 Year U.S. Treasury Notes		141		December 2010		17,772,609			99,702
30 Year U.S. Treasury Bonds		(63	)	December 2010		(8,424,281	)		(9,237	)


TOTAL								$	111,861

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND

Schedule of Investments

September 30, 2010 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – 17.0%


	Collateralized Mortgage Obligations – 3.2%
	Interest Only^(a) – 0.0%
	FHLMC REMIC Series 2575, Class IB
	$	67,882		5.500	%		08/15/30	$	266
	FHLMC REMIC Series 2586, Class NX
		309,805		4.500			08/15/16		8,503

									8,769


	Inverse Floaters^(b) – 0.0%
	FNMA REMIC Series 1990-134, Class SC
		31,178		21.178			11/25/20		43,939
	GNMA Series 2001-59, Class SA
		12,090		25.489			11/16/24		18,551

									62,490


	IOette^(a) – 0.0%
	FHLMC REMIC Series 1161, Class U
		740		1,172.807			11/15/21		20,708


	Planned Amortization Class – 0.0%
	FHLMC REMIC Series 1556, Class H
		368,507		6.500			08/15/13		384,353
	FHLMC REMIC Series 1916, Class PC
		301,502		6.750			12/15/11		307,845

									692,198


	Regular Floater^(b) – 0.9%
	FHLMC REMIC Series 3297, Class HF
		4,495,439		0.647			04/15/37		4,467,947
	FHLMC REMIC Series 3326, Class FC
		10,375,818		0.717			06/15/37		10,347,129
	FHLMC REMIC Series 3397, Class FK
		12,964,971		1.037			12/15/37		13,082,512
	FNMA REMIC Series 1988-12, Class B^(c)
		121,411		0.000			02/25/18		118,530
	FNMA REMIC Series 2001-60, Class OF
		1,436,762		1.206			10/25/31		1,461,742
	FNMA REMIC Series 2001-70, Class OF
		718,381		1.206			10/25/31		730,871

									30,208,731


	Sequential Fixed Rate – 1.3%
	FHLMC REMIC Series 108, Class G
		275,010		8.500			12/15/20		312,023
	FHLMC REMIC Series 1980, Class Z
		1,339,008		7.000			07/15/27		1,541,876
	FHLMC REMIC Series 2019, Class Z
		1,460,049		6.500			12/15/27		1,617,889
	FNMA REMIC Series 1989-66, Class J
		445,894		7.000			09/25/19		496,880
	FNMA REMIC Series 1990-16, Class E
		279,745		9.000			03/25/20		321,238
	FNMA REMIC Series 1992-33, Class K
		486,098		8.500			03/25/18		497,825
	FNMA REMIC Series 2009-70, Class AL
		38,756,746		5.000			08/25/19		41,819,819
	GNMA REMIC Series 1995-3, Class DQ
		68,795		8.050			06/16/25		78,797

									46,686,347


	Sequential Floating Rate^(b) – 1.0%
	FDIC Structured Sale Guaranteed Notes Series 2010-S1, Class 1A^(d)
		34,222,334		0.806			02/25/48		34,312,551
	FNMA REMIC Series 1988-12, Class A
		236,347		4.436			02/25/18		252,867

									34,565,418


	Targeted Amortization Class^(b)(c) – 0.0%
	FHLMC REMIC Series 3291, Class XC
		49,774		0.000			03/15/37		49,671



	TOTAL COLLATERALIZED
	MORTGAGE OBLIGATIONS							$	112,294,332


	Federal Agencies – 13.8%
	Adjustable Rate FHLMC^(b) – 0.8%
	$	170,894		3.761	%		05/01/18	$	175,809
		95,190		4.818			10/01/25		100,021
		3,383,128		3.310			09/01/34		3,544,277
		1,086,153		3.078			11/01/34		1,140,096
		1,162,124		2.687			04/01/35		1,216,948
		7,190,281		2.653			06/01/35		7,553,414
		2,930,308		3.435			08/01/35		3,098,586
		1,043,987		5.841			05/01/36		1,094,942
		337,729		5.975			10/01/36		355,043
		237,718		5.650			11/01/36		251,683
		7,552,235		6.263			09/01/37		7,956,290

									26,487,109


	Adjustable Rate FNMA^(b) – 4.0%
		78,260		2.157			11/01/17		79,534
		256,496		3.970			02/01/18		264,366
		123,492		6.133			06/01/18		127,211
		175,834		5.703			05/01/20		186,164
		85,985		4.720			01/01/23		90,059
		566,891		3.675			02/01/27		591,266
		6,098,036		3.550			08/01/29		6,280,820
		61,103		2.610			07/01/32		64,255
		44,796		3.005			07/01/32		47,020
		363,613		2.844			01/01/33		379,849
		3,991,592		2.676			05/01/33		4,204,024
		527,193		3.000			08/01/33		550,630
		3,388,603		4.611			08/01/33		3,632,688
		2,714,324		2.664			02/01/34		2,856,452
		898,137		2.570			05/01/34		942,378
		1,571,417		2.602			05/01/34		1,650,092
		1,962,455		2.713			06/01/34		2,062,885
		966,726		3.098			10/01/34		1,011,754
		1,700,532		3.118			10/01/34		1,782,897
		295,981		2.683			12/01/34		308,785
		2,294,533		2.592			02/01/35		2,399,907
		351,914		2.782			02/01/35		367,755

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND

Schedule of Investments (continued)

September 30, 2010 (Unaudited)


		Principal		Interest			Maturity
		Amount		Rate			Date			Value

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

		$	567,052		2.579	%		03/01/35		$	594,331
			3,641,805		2.763			03/01/35			3,824,889
			3,853,940		2.236			04/01/35			3,989,699
			7,652,567		2.293			04/01/35			7,947,321
			2,957,535		2.604			04/01/35			3,104,723
			631,467		2.400			05/01/35			658,370
			1,101,309		2.466			05/01/35			1,145,311
			12,761,721		2.770			07/01/35			13,354,924
			4,016,692		2.600			08/01/35			4,236,578
			2,786,522		4.273			10/01/35			2,913,008
			5,475,448		5.799			03/01/36			5,672,925
			1,487,860		2.565			04/01/36			1,521,144
			4,277,335		5.671			04/01/36			4,473,806
			2,984,101		2.748			06/01/36			3,065,409
			5,410,086		5.920			06/01/36			5,662,899
			4,768,083		2.811			07/01/36			4,903,320
			108,492		4.751			07/01/36			114,883
			6,876,531		5.887			09/01/36			7,233,099
			440,818		5.459			11/01/36			466,716
			336,881		5.609			11/01/36			356,673
			10,202,470		2.990			04/01/37			10,679,558
			7,970,420		5.753			07/01/37			8,438,683
			12,018,056		5.222			11/01/38			12,575,748
			293,173		5.758			12/01/46			308,997

											137,123,805


		Adjustable Rate GNMA^(b) – 0.4%
			3,604,308		1.875			05/20/34			3,708,555
			785,116		2.500			05/20/34			810,773
			1,457,671		3.500			07/20/34			1,501,277
			890,803		3.625			08/20/34			918,432
			4,126,377		3.500			09/20/34			4,249,823
			2,134,824		3.625			09/20/34			2,201,034
			883,414		2.750			10/20/34			908,460
			1,341,715		2.750			12/20/34			1,379,809

											15,678,163


		FHLMC – 0.7%
			71		7.000			01/01/11			71
			3,366		7.000			12/01/12			3,401
			32,065		6.500			01/01/13			33,557
			30,234		6.500			04/01/13			32,722
			77,549		6.500			05/01/13			83,929
			37,340		6.500			06/01/13			40,413
			22,219		6.500			10/01/13			23,312
			767,858		4.500			10/01/14			815,399
			506,862		4.000			11/01/14			536,650
			690,401		4.000			03/01/15			728,709
			4,726,088		4.500			03/01/15			4,903,620
			337,596		4.500			08/01/15			357,794
			46,886		8.500			10/01/15			51,499
			335,414		8.000			12/01/15			363,988
			12,716		7.000			03/01/16			13,698
			4,947,697		5.000			10/01/17			5,280,514
			5,571,297		5.000			11/01/17			5,946,062
			3,056,213		5.500			01/01/20			3,306,680
			976,298		7.000			04/01/22			1,103,227
			25,518		4.500			05/01/23			26,824
			35,017		7.500			01/01/31			39,050
			19,718		6.000			06/01/36			21,465

											23,712,584


		FNMA – 5.8%
			4,046		7.000			07/01/11			4,150
			1,006,916		5.500			01/01/13			1,049,307
			22,410		6.000			01/01/14			24,205
			73,520		6.000			03/01/14			79,406
			14,527		5.500			04/01/14			15,644
			460,767		4.000			01/01/15			476,909
			182,564		4.500			01/01/15			189,612
			2,959		8.500			09/01/15			2,975
			137,852		8.500			10/01/15			143,759
			19,962		8.500			12/01/15			21,283
			15,169		5.500			01/01/18			16,434
			503,115		5.500			07/01/18			544,826
			278,974		5.500			08/01/18			302,556
			501,866		5.500			09/01/18			544,132
			69,424		5.500			12/01/18			75,271
			31,418		5.500			01/01/19			34,054
			56,998		5.500			03/01/19			61,781
			26,805		5.500			08/01/19			28,867
			16,160		5.000			09/01/19			17,259
			84,101		7.000			11/01/19			94,053
			9,660,341		6.000			10/01/21			10,470,096
			11,250,033		5.500			09/01/23			12,153,991
			1,924,382		5.500			10/01/23			2,084,347
			13,401		7.000			12/01/24			15,000
			2,676		7.000			07/01/27			2,996
			3,720		7.000			08/01/27			4,208
			5,188		7.000			10/01/28			5,867
			4,282		7.000			01/01/29			4,830
			2,901		7.000			11/01/29			3,263
	��		137,977		8.000			02/01/31			152,441
			4,240		7.000			04/01/31			4,751
			21,834		7.000			05/01/32			24,438
			18,112		7.000			06/01/32			20,272
			6,678		7.000			08/01/32			7,475
			2,357,621		6.000			03/01/33			2,587,121
			4,758,442		6.500			04/01/33			5,294,138
			1,081		7.000			10/01/33			1,210
			5,155		7.000			04/01/34			5,776
			13,276,947		6.000			04/01/35			14,583,675
			1,808		6.000			11/01/35			1,961
			95,000		8.500			09/01/37			105,641
			1,387,791		7.500			10/01/37			1,542,349
			41,954		7.500			09/01/47			46,365
			146,000,000		3.500			TBA-15yr	^(e)		149,718,445

											202,567,139


		GNMA – 2.1%
			8,655		9.000			07/15/12			8,708
			1,005,506		5.500			07/15/20			1,088,580
			262,559		6.000			10/15/38			286,887
			846,643		6.000			11/15/38			924,387

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND


	Principal		Interest			Maturity
	Amount		Rate			Date			Value

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

	$	1,271,106		6.000	%		12/15/38		$	1,388,882
		3,255,896		6.000			01/15/39			3,557,576
		64,000,000		4.000			TBA-30yr	^(e)		66,103,126

										73,358,146


	TOTAL FEDERAL AGENCIES								$	478,926,946


	TOTAL MORTGAGE-BACKED OBLIGATIONS
	(Cost $579,118,487)								$	591,221,278




Agency Debentures – 21.2%


	FHLB
	$	8,130,000		5.000	%		09/09/11		$	8,483,649
		182,500,000		0.497	^(b)		10/13/11			182,520,257
		12,000,000		1.375			06/08/12			12,172,660
		33,370,000		2.000			09/14/12			34,303,863
		67,200,000		1.750			12/14/12			68,691,410
		12,000,000		4.875			12/14/12			13,090,790
		83,200,000		3.750			09/09/16			90,866,231
		37,000,000		3.875			12/14/18			40,597,214
	FHLMC
		18,000,000		1.250			01/26/12			18,052,450
		36,600,000		4.500			01/15/13			39,760,084
		29,800,000		3.800			03/09/16			30,242,777
	FNMA
		150,000,000		2.050	^(f)		04/26/13			151,429,005
		42,700,000		3.000			01/28/15			43,042,668
	Small Business Administration
		134,748		7.200			06/01/17			148,538
		335,283		6.300			05/01/18			366,157
		252,322		6.300			06/01/18			275,987


	TOTAL AGENCY DEBENTURES
	(Cost $720,099,862)								$	734,043,740




Government Guarantee Obligations^(g) – 26.8%


	Ally Financial, Inc.
	$	80,000,000		1.750	%		10/30/12		$	81,878,488
		92,200,000		2.200			12/19/12			95,356,661
	Banco Bilbao Vizcaya Argentaria Puerto Rico
		105,500,000		2.450			06/22/12			108,107,116
	Bank of the West
		20,000,000		2.150			03/27/12			20,502,608
	Citibank NA
		5,000,000		0.448	^(b)		05/07/12			5,006,320
		15,900,000		1.875			05/07/12			16,243,186
		4,300,000		0.263	^(b)		06/04/12			4,298,078
	Citigroup Funding, Inc.
		12,400,000		2.125			07/12/12			12,749,106
		30,700,000		1.875			10/22/12			31,497,488
		21,800,000		1.875			11/15/12			22,371,720
	Citigroup, Inc.
		19,500,000		0.842	^(b)		12/09/10			19,526,383
		75,300,000		2.125			04/30/12			77,234,984
	General Electric Capital Corp.
		25,000,000		3.000			12/09/11			25,768,225
		51,000,000		0.493	^(b)		03/12/12			51,322,983
		26,500,000		2.000			09/28/12			27,238,571
		37,000,000		2.125			12/21/12			38,211,151
		20,400,000		2.625			12/28/12			21,297,604
	HSBC USA, Inc.
		65,200,000		3.125			12/16/11			67,331,831
	Morgan Stanley & Co.
		25,000,000		1.147	^(b)		12/01/11			25,255,475
		65,000,000		3.250			12/01/11			67,149,166
	The Huntington National Bank^(b)
		54,900,000		0.697			06/01/12			55,404,092
	United States Central Federal Credit Union
		29,700,000		1.900			10/19/12			30,477,095
	Western Corporate Federal Credit Union
		26,300,000		1.750			11/02/12			26,898,343


	TOTAL GOVERNMENT GUARANTEE OBLIGATIONS
	(Cost $916,584,300)								$	931,126,674




U.S. Treasury Obligations – 38.7%


	United States Treasury Inflation Protected Securities
	$	30,644,243		2.375	%		04/15/11		$	31,041,700
		62,686,766		3.000			07/15/12			66,585,257
	United States Treasury Notes
		325,500,000		0.875			01/31/12			327,869,630
		616,400,000		1.000			04/30/12			622,600,966
		106,600,000		0.750			05/31/12			107,249,195
		71,500,000		0.625			06/30/12			71,790,998
		15,900,000		0.625			07/31/12			15,966,145
		60,000,000		0.375			08/31/12			59,955,480
		18,200,000		0.375			09/30/12			18,180,889
		18,800,000		1.375			01/15/13			19,173,368
		500,000		0.750			08/15/13			501,885


	TOTAL U.S. TREASURY OBLIGATIONS
	(Cost $1,332,838,394)								$	1,340,915,513


	TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENT
	(Cost $3,548,641,043)								$	3,597,307,205




Short-term Investment^(h) – 3.0%


	Repurchase Agreement – 3.0%
	Joint Repurchase Agreement Account II
	$	104,300,000		0.270	%		10/01/10		$	104,300,000
	Maturity Value: $104,300,782
	(Cost $104,300,000)


	TOTAL INVESTMENTS – 106.7%
	(Cost $3,652,941,043)								$	3,701,607,205


	LIABILITIES IN EXCESS OF OTHER ASSETS – (6.7)%									(233,409,199	)


	NET ASSETS – 100.0%								$	3,468,198,006

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND

Schedule of Investments (continued)

September 30, 2010 (Unaudited)

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


(a)		Security with a 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, 2010.

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

(d)		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 $34,312,551, which represents approximately 1.0% of net assets as of September 30, 2010.

(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 $215,821,571, which represents approximately 6.2% of net assets as of September 30, 2010.


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

(g)		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.

(h)		Joint repurchase agreement was entered into on September 30, 2010. Additional information appears on pages 50-51.




Investment Abbreviations:
FDIC	—	Federal Deposit Insurance Corp.
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, 2010, the following futures contracts were open:


	Number of
	Contracts			Expiration	Current			Unrealized
Type	Long (Short)			Date	Value			Gain (Loss)

Eurodollars		147		December 2010	$	36,617,700		$	187,058
Ultra Long U.S. Treasury Bonds		(83	)	December 2010		(11,726,344	)		300,738
2 Year U.S. Treasury Notes		7,702		December 2010		1,690,468,664			3,065,338
5 Year U.S. Treasury Notes		(138	)	December 2010		(16,679,672	)		(82,523	)
10 Year U.S. Treasury Notes		(37	)	December 2010		(4,663,734	)		(2,952	)
30 Year U.S. Treasury Bonds		(138	)	December 2010		(18,453,188	)		(10,254	)


TOTAL								$	3,457,405

SWAP CONTRACTS — At September 30, 2010, the Fund had outstanding swap contracts with the following terms:

INTEREST RATE SWAP CONTRACTS


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

Bank of America Securities LLC	$	29,500			10/27/16	3 month LIBOR		3.263	%	$	(2,850,232	)	$	—		$	(2,850,232	)
Deutsche Bank Securities, Inc.		121,700	^(a)		12/15/13	3 month LIBOR		2.250			(4,581,483	)		(876,000	)		(3,705,483	)
JPMorgan Securities, Inc.		49,800			10/21/16	3 month LIBOR		3.185			(4,592,000	)		—			(4,592,000	)
		37,000			10/05/18	3 month LIBOR		3.242			(3,251,824	)		—			(3,251,824	)


TOTAL										$	(15,275,539	)	$	(876,000	)	$	(14,399,539	)


(a)	Represents forward starting interest rate swaps whose effective dates of commencement of accruals and cash flows occur subsequent to September 30, 2010.

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND

Schedule of Investments

September 30, 2010 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Mortgage-Backed Obligations – 19.9%


	Collateralized Mortgage Obligations – 3.5%
	Adjustable Rate Non-Agency^(a) – 0.3%
	Bank of America Mortgage Securities Series 2002-J, Class A2
	$	46,261		3.466	%		09/25/32	$	41,469
	Bear Stearns Adjustable Rate Mortgage Trust Series 2003-05, Class 1A1
		54,026		3.075			08/25/33		47,374
	Countrywide Home Loan Mortgage Pass-Through Trust Series 2003-37, Class 1A1
		32,359		3.321			08/25/33		29,187
	CS First Boston Mortgage Securities Corp. Series 2003-AR9, Class 2A2
		759,770		2.632			03/25/33		648,962
	Sequoia Mortgage Trust Series 2004-10, Class A3A
		1,334,795		0.794			11/20/34		1,117,186

									1,884,178


	Interest Only^(b) – 0.0%
	FHLMC REMIC Series 2586, Class NX
		554,908		4.500			08/15/16		15,230
	FNMA REMIC Series 1990-145, Class B
		1,129		1,004.961			12/25/20		23,828

									39,058


	Planned Amortization Class – 0.2%
	FHLMC REMIC Series 2113, Class TE
		733,231		6.000			01/15/14		766,885
	FNMA REMIC Series 1993-225, Class WC
		435,735		6.500			12/25/13		459,354

									1,226,239


	Regular Floater^(a) – 1.0%
	BCAP LLC Trust Series 2006-RR1, Class CF
		220,752		0.896			11/25/36		207,522
	Collateralized Mortgage Securities Corp. Series N, Class 2
		141,123		0.918			08/25/17		141,171
	FHLMC REMIC Series 1826, Class F
		110,859		0.713			09/15/21		111,142
	FHLMC REMIC Series 3297, Class HF
		2,511,245		0.647			04/15/37		2,495,887
	FNMA REMIC Series 1990-145, Class A
		459,515		1.414			12/25/20		457,372
	FNMA REMIC Series 1997-20, Class F
		911,551		0.909			03/25/27		931,067
	FNMA REMIC Series 1998-66, Class FC
		212,521		0.757			11/17/28		214,278
	FNMA REMIC Series 2001-70, Class OF
		957,841		1.206			10/25/31		974,495

									5,532,934


	Sequential Fixed Rate – 1.5%
	First Nationwide Trust Series 2001-4, Class 1A1
		53,951		6.750			09/21/31		55,337
	FNMA REMIC Series 2009-70, Class AL
		7,354,221		5.000			08/25/19		7,935,449

									7,990,786


	Sequential Floating Rate^(a)(c) – 0.5%
	FDIC Structured Sale Guaranteed Notes Series 2010-S1, Class 1A
		2,504,073		0.806			02/25/48		2,510,675



	TOTAL COLLATERALIZED
	MORTGAGE OBLIGATIONS							$	19,183,870


	Federal Agencies – 16.4%
	Adjustable Rate FHLMC^(a) – 1.3%
	$	59,600		3.109	%		08/01/16	$	60,620
		89,450		3.453			08/01/18		93,192
		56,460		3.267			11/01/18		58,239
		396,279		4.735			11/01/18		413,884
		14,488		2.742			02/01/19		14,915
		23,478		3.362			02/01/19		24,256
		62,393		3.076			03/01/19		63,732
		38,718		3.183			03/01/19		40,328
		62,750		3.157			06/01/19		64,468
		50,231		3.697			07/01/19		51,935
		921,983		3.550			11/01/19		961,428
		793,869		6.868			11/01/19		840,632
		69,719		3.619			01/01/20		71,267
		84,793		3.075			05/01/21		86,932
		19,682		5.975			01/01/25		20,710
		58,087		3.125			10/01/26		59,201
		755,489		5.350			08/01/28		800,110
		484,405		2.982			05/01/29		495,975
		56,399		4.202			06/01/29		60,320
		76,906		2.864			04/01/30		79,269
		84,395		4.366			06/01/30		90,291
		215,435		2.796			12/01/30		221,473
		6,883		2.972			01/01/31		7,193
		76,068		2.852			02/01/31		78,374
		9,315		2.623			05/01/31		9,781
		16,850		4.487			06/01/31		17,383
		7,722		3.059			11/01/31		8,110
		15,691		3.500			10/01/32		16,469
		2,777		2.359			02/01/33		2,887
		736,625		2.449			07/01/33		767,263
		1,136,830		2.718			09/01/33		1,193,673
		49,530		3.130			11/01/33		51,823
		606,105		5.340			05/01/35		641,713

									7,467,846


	Adjustable Rate FNMA^(a) – 6.1%
		273,881		6.735			04/01/17		286,442
		40,389		4.258			08/01/17		40,959
		88,919		3.041			09/01/17		90,201
		142,747		3.047			09/01/17		145,255
		36,911		2.284			11/01/17		37,727
		43,855		2.875			12/01/17		44,852
		33,133		4.875			12/01/17		35,520
		97,717		3.110			03/01/18		99,435
		226,063		3.185			03/01/18		231,667
		1,037,348		3.156			07/01/18		1,063,417
		61,591		2.300			10/01/18		62,570
		125,667		3.059			10/01/18		128,059
		110,053		3.075			10/01/18		110,863

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND

Schedule of Investments (continued)

September 30, 2010 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

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

	$	53,157		3.119	%		10/01/18	$	54,388
		282,060		3.370			10/01/18		289,654
		4,129		2.089			11/01/18		4,213
		59,009		3.125			12/01/18		60,918
		136,457		3.156			01/01/19		139,830
		534,928		4.026			04/01/19		563,724
		31,143		5.920			04/01/19		32,797
		236,974		3.041			05/01/19		244,230
		1,001,233		3.172			05/01/19		1,027,167
		214,478		3.453			06/01/19		221,525
		130,039		3.593			06/01/19		134,898
		139,641		6.193			07/01/19		147,845
		261,194		3.517			08/01/19		269,431
		410,725		4.291			08/01/19		436,071
		1,401,404		2.798			11/01/19		1,451,552
		40,875		3.594			11/01/19		41,915
		8,218		3.625			04/01/20		8,480
		354,539		5.703			05/01/20		375,368
		467,978		3.060			06/01/20		480,004
		148,811		3.371			06/01/20		153,247
		241,193		3.348			11/01/20		248,770
		319,011		3.487			03/01/21		331,276
		104,574		2.455			09/01/21		108,134
		94,863		3.580			12/01/21		99,281
		1,326,167		3.525			01/01/22		1,356,993
		32,916		6.485			02/01/22		34,855
		105,486		3.482			05/20/22		109,289
		348,915		2.787			02/01/23		356,739
		6,852		6.219			12/01/23		7,224
		499,599		2.821			01/01/24		511,949
		544,843		2.604			03/01/24		556,695
		5,856,662		3.247			04/01/24		6,007,831
		485,232		3.472			06/20/24		502,154
		32,443		4.418			08/01/24		34,133
		150,638		5.096			01/01/25		158,744
		275,624		3.675			02/01/27		287,476
		38,683		3.949			06/01/27		39,838
		29,307		4.250			12/01/27		31,403
		57,853		4.546			01/01/28		62,020
		56,834		2.510			05/01/28		59,393
		14,419		2.690			09/01/28		15,151
		513,272		3.718			01/01/29		535,117
		13,788		2.510			06/01/29		14,421
		22,352		3.037			06/01/29		23,079
		32,840		3.075			06/01/29		33,876
		829,644		3.852			05/01/30		874,484
		4,416		3.135			02/01/31		4,618
		92,174		2.494			05/01/31		96,430
		52,001		2.655			06/01/31		54,519
		599,797		2.719			07/01/31		631,208
		188,596		2.518			08/01/31		197,538
		80,244		2.710			08/01/31		84,285
		171,632		2.934			11/01/31		179,135
		82,807		2.365			12/01/31		86,254
		152,888		1.865			01/01/32		156,730
		183,714		1.945			02/01/32		188,747
		58,269		2.015			03/01/32		60,011
		493,103		2.757			03/01/32		521,089
		20,198		3.553			03/01/32		21,255
		6,202		2.500			04/01/32		6,490
		361,157		2.663			04/01/32		380,049
		31,392		2.134			05/01/32		32,180
		119,900		2.830			07/01/32		126,479
		35,285		2.375			09/01/32		36,787
		328,714		2.650			09/01/32		345,959
		12,215		2.675			09/01/32		12,867
		33,108		2.676			09/01/32		34,644
		36,081		2.909			09/01/32		37,954
		37,512		2.758			10/01/32		39,570
		7,698		2.981			12/01/32		8,050
		216,842		2.615			01/01/33		228,016
		436,720		2.313			02/01/33		452,333
		46,192		2.516			04/01/33		48,366
		256,465		2.833			04/01/33		271,217
		3,065,479		2.095			05/01/33		3,167,579
		961,715		2.833			05/01/33		1,016,984
		14,373		3.525			08/01/33		15,051
		112,776		2.876			01/01/34		118,551
		35,939		2.545			02/01/34		37,666
		1,207,651		2.236			04/01/35		1,250,191
		860,459		2.293			04/01/35		893,601
		1,273,010		2.529			10/01/35		1,335,500
		27,544		4.113			05/01/36		29,277
		6,618		2.556			11/01/38		6,924
		146,847		1.786			06/01/40		147,799
		558,323		2.590			07/01/40		585,209
		20,774		1.586			02/01/41		20,740

									33,882,401


	Adjustable Rate GNMA^(a) – 1.7%
		7,963,448		3.500			08/20/34		8,201,416
		1,017,416		3.625			08/20/34		1,048,971

									9,250,387


	FHLMC – 1.8%
		96,391		6.500			03/01/13		104,323
		37,360		6.500			04/01/13		40,434
		44,962		6.500			05/01/13		48,662
		117,951		6.500			06/01/13		127,657
		969,348		8.000			12/01/15		1,051,924
		188,973		6.000			05/01/17		204,695
		975,666		5.000			10/01/17		1,041,296
		1,098,637		5.000			11/01/17		1,172,539
		617,430		5.500			01/01/20		668,030
		308,140		7.000			04/01/21		347,557
		174,208		7.000			08/01/21		196,524
		1,603,244		7.000			03/01/22		1,811,862
		460,447		7.000			05/01/22		520,366
		1,901,387		7.000			06/01/22		2,148,706
		25,518		4.500			05/01/23		26,824
		22,241		7.000			12/01/25		24,984

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)

	$	286,566		5.000	%		10/01/39		$	306,324

										9,842,707


	FNMA – 4.0%
		143,182		6.000			09/01/11			146,761
		263,287		6.500			04/01/12			272,935
		528,783		6.000			05/01/12			553,977
		140,069		6.500			05/01/12			145,416
		321,952		6.000			06/01/12			337,294
		175,392		6.500			06/01/12			182,346
		2,467,413		5.500			01/01/13			2,570,938
		459,078		8.000			01/01/16			498,276
		590,109		7.000			03/01/17			648,525
		109,292		7.000			05/01/17			120,147
		4,478,368		5.500			03/01/18			4,856,997
		457,811		5.500			04/01/18			496,510
		3,786		5.000			08/01/19			4,049
		16,433		5.000			09/01/19			17,571
		19,012		5.000			11/01/19			20,334
		55,229		5.000			01/01/20			59,071
		169,075		7.000			07/01/21			191,102
		300,739		7.000			11/01/21			339,941
		116,832		7.000			12/01/21			132,061
		238,682		7.000			01/01/22			269,791
		58,547		7.000			02/01/22			66,175
		182,010		7.000			01/01/28			203,228
		163,972		6.500			04/01/33			182,226
		248,141		5.000			01/01/37			261,657
		413,896		5.000			03/01/38			435,381
		9,000,000		3.500			TBA-15yr	^(d)		9,229,219

										22,241,928


	GNMA – 1.5%
		42,503		7.000			12/15/25			48,396
		98,500		7.000			04/15/26			112,293
		8,000,000		4.000			TBA-30yr	^(d)		8,262,891

										8,423,580



	TOTAL FEDERAL AGENCIES								$	91,108,849


	TOTAL MORTGAGE-BACKED OBLIGATIONS
	(Cost $108,300,211)								$	110,292,719




Agency Debentures – 13.1%


	FHLB
	$	27,000,000		0.497	%^(a)		10/13/11		$	27,002,997
		17,000,000		3.750			09/09/16			18,566,417
		8,000,000		3.875			12/14/18			8,777,776
	FNMA
		16,000,000		2.050			04/26/13			16,152,427
		1,900,000		3.000			07/28/14			1,936,807


	TOTAL AGENCY DEBENTURES
	(Cost $70,192,612)								$	72,436,424




Asset-Backed Securities – 15.6%


	Auto – 4.3%
	Bank of America Auto Trust Series 2009-1A, Class A2^(c)
	$	520,690		1.700	%		12/15/11		$	520,878
	Bank of America Auto Trust Series 2009-3A, Class A2^(c)
		6,144,245		0.890			04/15/12			6,149,390
	Ford Credit Auto Owner Trust Series 2009-B, Class A3
		10,000,000		2.790			08/15/13			10,164,433
	Ford Credit Auto Owner Trust Series 2009-E, Class A2
		6,784,241		0.800			03/15/12			6,789,337

										23,624,038


	Student Loans^(a) – 11.3%
	Access Group, Inc. Series 2002-1, Class A2
		5,429,144		0.469			09/25/25			5,399,826
	Access Group, Inc. Series 2005-2, Class A1
		1,456,979		0.439			08/22/17			1,453,604
	Brazos Higher Education Authority Inc. Student Loan Revenue Series 2004 I-A-2
		4,983,789		0.449			06/27/22			4,900,799
	Brazos Higher Education Authority Inc. Student Loan Revenue Series 2005 I-A-2
		3,696,750		0.369			12/26/18			3,659,819
	Brazos Higher Education Authority, Inc. Series 2005-2, Class A9
		3,900,879		0.389			12/26/17			3,852,131
	College Loan Corp. Trust Series 2004-1, Class A3
		8,500,000		0.658			04/25/21			8,495,674
	College Loan Corp. Trust Series 2005-1, Class A2
		5,000,000		0.598			07/25/24			4,964,014
	College Loan Corp. Trust Series 2005-2, Class A2
		2,009,751		0.636			10/15/21			1,995,866
	Collegiate Funding Services Education Loan Trust I Series 2003-A, Class A2
		1,373,773		0.589			09/28/20			1,373,682
	Education Funding Capital Trust I Series 2003-3, Class A3
		9,475,773		0.562			03/16/20			9,443,115
	Education Funding Capital Trust I Series 2004-1, Class A2
		3,217,796		0.452			12/15/22			3,158,772
	Pennsylvania State Higher Education Assistance Agency Series 2009-2 Class A-1
		3,052,406		1.098			04/25/19			3,072,827
	SLM Student Loan Trust Series 2004-9, Class A4
		2,804,322		0.628			04/25/17			2,801,951
	SLM Student Loan Trust Series 2006-1, Class A3
		3,792,810		0.538			10/25/16			3,789,790
	SLM Student Loan Trust Series 2006-5, Class A3
		2,404,503		0.528			10/25/19			2,399,375
	SLM Student Loan Trust Series 2008-6, Class A1
		2,129,376		0.898			10/27/14			2,131,777

										62,893,022


	TOTAL ASSET-BACKED SECURITIES
	(Cost $86,414,598)								$	86,517,060

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND

Schedule of Investments (continued)

September 30, 2010 (Unaudited)


	Principal		Interest			Maturity
	Amount		Rate			Date		Value

Government Guarantee Obligations^(e) – 27.5%


	Ally Financial, Inc.
	$	12,800,000		1.750	%		10/30/12	$	13,100,558
		26,200,000		2.200			12/19/12		27,097,012
	Bank of America Corp.^(a)
		12,100,000		1.116			12/02/11		12,231,019
		13,400,000		0.490			06/22/12		13,457,245
	Citibank NA
		1,800,000		1.875			05/07/12		1,838,851
	Citigroup Funding, Inc.
		8,600,000		0.805	^(a)		04/30/12		8,649,648
		6,400,000		1.875			10/22/12		6,566,252
		10,000,000		1.875			11/15/12		10,262,257
	Citigroup, Inc.
		1,200,000		2.125			04/30/12		1,230,836
	General Electric Capital Corp.
		9,400,000		0.493	^(a)		03/12/12		9,459,530
		7,500,000		2.000			09/28/12		7,709,030
		2,000,000		0.292	^(a)		12/21/12		2,000,878
		6,000,000		2.625			12/28/12		6,264,001
	Morgan Stanley & Co.^(a)
		8,500,000		0.691			02/10/12		8,536,813
		3,800,000		0.641			06/20/12		3,829,496
	The Huntington National Bank^(a)
		13,000,000		0.697			06/01/12		13,119,366
	United States Central Federal Credit Union
		1,500,000		1.900			10/19/12		1,539,247
	Western Corporate Federal Credit Union
		5,400,000		1.750			11/02/12		5,522,854


	TOTAL GOVERNMENT GUARANTEE OBLIGATIONS
	(Cost $150,449,068)							$	152,414,893




U.S. Treasury Obligations – 23.5%


	United States Treasury Inflation Protected Securities
	$	10,544,256		2.375	%		04/15/11	$	10,681,015
		4,850,040		3.000			07/15/12		5,151,664
	United States Treasury Notes
		4,900,000		0.875			01/31/12		4,935,672
		104,500,000		1.000	^(f)		03/31/12		105,529,326
		1,500,000		1.000			04/30/12		1,515,090
		1,800,000		0.750			05/31/12		1,810,962
		400,000		1.250			09/30/15		399,436


	TOTAL U.S. TREASURY OBLIGATIONS
	(Cost $128,831,472)							$	130,023,165


	TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENT
	(Cost $544,187,961)							$	551,684,261




Short-term Investment^(g) – 3.2%


	Repurchase Agreement – 3.2%
	Joint Repurchase Agreement Account II
	$	17,800,000		0.270	%		10/01/10	$	17,800,000
	Maturity Value: $17,800,134
	(Cost $17,800,000)


	TOTAL INVESTMENTS – 102.8%
	(Cost $561,987,961)							$	569,484,261


	LIABILITIES IN EXCESS OF OTHER ASSETS – (2.8)%								(15,574,337	)


	NET ASSETS – 100.0%							$	553,909,924

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, 2010.

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

(c)		Exempt from registration under Rule 144A of the Securities Act of 1933. Under procedures approved by the Board of Trustees, such securities have been determined to be liquid by the investment adviser and may be resold, normally to qualified institutional buyers in transactions exempt from registration. Total market value of Rule 144A securities amounts to $9,180,943, which represents approximately 1.7% of net assets as of September 30, 2010.

(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 $17,492,110, which represents approximately 3.2% of net assets as of September 30, 2010.

(e)		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.

(f)		All or a portion of security is segregated as collateral for initial margin requirement on futures transactions.

(g)		Joint repurchase agreement was entered into on September 30, 2010. Additional information appears on pages 50-51.




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

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

GOLDMAN SACHS ULTRA-SHORT DURATION GOVERNMENT FUND

ADDITIONAL INVESTMENT INFORMATION

FUTURES CONTRACTS — At September 30, 2010, the following futures contracts were open:


	Number of
	Contracts			Expiration	Current			Unrealized
Type	Long (Short)			Date	Value			Gain (Loss)

2 Year U.S. Treasury Notes		(138	)	December 2010	$	(30,288,844	)	$	(28,634	)
5 Year U.S. Treasury Notes		(378	)	December 2010		(45,687,797	)		(285,223	)
10 Year U.S. Treasury Notes		220		December 2010		27,730,313			185,276
30 Year U.S. Treasury Bonds		(32	)	December 2010		(4,279,000	)		665


TOTAL								$	(127,916	)

SWAP CONTRACTS — At September 30, 2010, the Fund had outstanding swap contracts with the following terms:

INTEREST RATE SWAP CONTRACTS


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

Bank of America Securities LLC	$	6,100			10/27/16	3 month LIBOR		3.263	%	$	(589,370	)
Credit Suisse First Boston Corp.		5,300	^(a)		08/15/17	3 month LIBOR		2.252			(51,500	)
Deutsche Bank Securities, Inc		4,200	^(a)		08/15/17	3 month LIBOR		2.242			(37,911	)
		4,700	^(a)		08/15/17	3 month LIBOR		2.114			(4,779	)
JPMorgan Securities, Inc.		10,100			10/21/16	3 month LIBOR		3.185			(931,309	)
		4,700	^(a)		08/15/17	3 month LIBOR		2.161			(18,764	)
		8,000			10/05/18	3 month LIBOR		3.242			(703,097	)


TOTAL										$	(2,336,730	)


*		There are no upfront payments on the swap contract(s), therefore the unrealized gain (loss) of the swap contract(s) is equal to their market value.
(a)		Represents forward starting interest rate swaps whose effective dates of commencement of accruals and cash flows occur subsequent to September 30, 2010.

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Schedule of Investments

September 30, 2010 (Unaudited)

ADDITIONAL INVESTMENT INFORMATION

JOINT REPURCHASE AGREEMENT ACCOUNT II — At September 30, 2010, the Funds had undivided interests in the Joint Repurchase Agreement Account II, as follows:


Fund	Principal Amount

Enhanced Income	$	5,400,000


Government Income		208,600,000


Inflation Protected Securities		4,200,000


Short Duration Government		104,300,000


Ultra-Short Duration Government		17,800,000

REPURCHASE AGREEMENTS


	Principal		Interest			Maturity		Maturity
Counterparty	Amount		Rate			Date		Value

Banc of America Securities LLC	$	300,000,000	0.	250	%		10/01/10	$	300,002,083


Banc of America Securities LLC		1,107,500,000	0.	300			10/01/10		1,107,509,229


Barclays Capital, Inc.		1,400,000,000	0.	250			10/01/10		1,400,009,722


BNP Paribas Securities Co.		3,200,000,000	0.	240			10/01/10		3,200,021,333


BNP Paribas Securities Co.		1,500,000,000	0.	280			10/01/10		1,500,011,667


BNP Paribas Securities Co.		800,000,000	0.	290			10/01/10		800,006,444


Citibank N.A.		250,000,000	0.	300			10/01/10		250,002,083


Citigroup Global Markets, Inc.		1,250,000,000	0.	300			10/01/10		1,250,010,417


Credit Suisse Securities (USA) LLC		500,000,000	0.	220			10/01/10		500,003,056


Credit Suisse Securities (USA) LLC		550,000,000	0.	250			10/01/10		550,003,819


Deutsche Bank Securities, Inc.		400,000,000	0.	280			10/01/10		400,003,111


JPMorgan Securities		1,500,000,000	0.	250			10/01/10		1,500,010,417


JPMorgan Securities		160,000,000	0.	300			10/01/10		160,001,333


Merrill Lynch & Co., Inc.		850,000,000	0.	300			10/01/10		850,007,083


RBS Securities, Inc.		1,000,000,000	0.	280			10/01/10		1,000,007,778


RBS Securities, Inc.		1,000,000,000	0.	300			10/01/10		1,000,008,333


UBS Securities LLC		750,000,000	0.	250			10/01/10		750,005,208


UBS Securities LLC		750,000,000	0.	280			10/01/10		750,005,833


UBS Securities LLC		170,000,000	0.	300			10/01/10		170,001,417


Wells Fargo Securities LLC		500,000,000	0.	250			10/01/10		500,003,472


Wells Fargo Securities LLC		3,250,000,000	0.	280			10/01/10		3,250,025,278


TOTAL								$	21,187,659,116

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


ADDITIONAL INVESTMENT INFORMATION (continued)

At September 30, 2010, the Joint Repurchase Agreement Account II was fully collateralized by:


Issuer	Interest Rates			Maturity Dates

Federal Farm Credit Bank		4.550 to 7.350	%		03/07/11 to 10/29/37


Federal Farm Credit Bank Principal-Only Stripped Securities		0.000			12/16/15


Federal Home Loan Bank		0.000 to 8.290			10/01/10 to 07/15/36


Federal Home Loan Mortgage Corp.		0.000 to 7.690			10/04/10 to 09/01/40


Federal Home Loan Mortgage Corp. Interest-Only Stripped Securities		0.000			01/15/12 to 01/15/28


Federal Home Loan Mortgage Corp. Principal-Only Stripped Securities		0.000			11/15/13 to 03/15/31


Federal National Mortgage Association		0.000 to 10.350			10/12/10 to 06/01/50


Federal National Mortgage Association Interest-Only Stripped Securities		0.000			11/15/12 to 07/15/29


Federal National Mortgage Association Principal-Only Stripped Security		0.000			03/23/28


Government National Mortgage Association		4.000 to 6.000			03/15/24 to 09/15/40


Tennessee Valley Authority		4.375 to 6.000			03/15/13 to 07/18/17


Tennessee Valley Authority Interest-Only Stripped Securities		0.000			11/01/10 to 07/15/20


Tennessee Valley Authority Principal-Only Stripped Security		0.000			12/15/17


U.S. Treasury Bond		5.000			05/15/37


U.S. Treasury Interest-Only Stripped Securities		0.000			02/15/11 to 08/15/20


U.S. Treasury Notes		0.750 to 4.625			01/31/11 to 11/15/18

The aggregate market value of the collateral, including accrued interest, was $21,615,378,308.

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, 2010 (Unaudited)


	Enhanced
	Income Fund

Assets:

Investments in securities, at value (identified cost $1,001,988,404, $830,678,411, $235,584,273, $3,548,641,043 and $544,187,961, respectively)	$	1,015,061,629
Repurchase agreement, at value which equals cost		5,400,000
Cash		54,515
Receivables:
Investment securities sold		12,045,912
Fund shares sold		10,598,473
Interest		6,312,274
Swap contracts, at value (includes upfront payments made of $76,342, $0, $0, $0 and $0, respectively)		81,883
Due from broker — collateral for swap contracts		—
Due from broker — variation margin		—
Reimbursement from investment adviser		—
Other assets		4,223


Total assets		1,049,558,909





Liabilities:

Payables:
Fund shares redeemed		4,202,422
Investment securities purchased		3,660,575
Amounts owed to affiliates		310,323
Income distribution		274,771
Swap contracts, at value (includes upfront payments received of $34,394, $0, $0, $876,000 and $0, respectively)		10,154
Due to broker — variation margin		7,464
Forward sale contracts, at value (proceeds receivable $0, $3,119,922, $0, $0 and $0, respectively)		—
Accrued expenses and other liabilities		110,059


Total liabilities		8,575,768





Net Assets:

Paid-in capital		1,052,206,081
Accumulated undistributed net investment income		874,657
Accumulated net realized gain (loss) from investment, futures and swap transactions		(19,678,548	)
Net unrealized gain on investments, futures and swaps		7,580,951


NET ASSETS	$	1,040,983,141



Net Assets:
Class A	$	334,243,301
Class B		1,164,674
Class C		—
Institutional		700,272,096
Administration		5,302,068
Service		—
Class IR		1,002
Class R		—


Total Net Assets	$	1,040,983,141


Shares Outstanding $0.001 par value (unlimited shares authorized):
Class A		34,688,172
Class B		121,050
Class C		—
Institutional		72,745,597
Administration		548,877
Service		—
Class IR		104
Class R		—


Net asset value, offering and redemption price per share:^(a)
Class A		$9.64
Class B		9.62
Class C		—
Institutional		9.63
Administration		9.66
Service		—
Class IR		9.62
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 $9.79, $10.62, $8.94, $16.39 and $11.98, respectively. At redemption, Class B and Class C Shares may be subject to a contingent deferred sales charge, assessed on the amount equal to the lesser of the current net asset value or the original purchase price of the shares.

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


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





$	857,170,770	$	245,646,192	$	3,597,307,205	$	551,684,261
	208,600,000		4,200,000		104,300,000		17,800,000
	58,159		51,576		57,929		12,424

	245,277,586		—		43,203,062		11,900,575
	1,181,247		76,684		5,217,543		408,615
	3,489,991		1,111,523		14,569,936		1,394,804
	—		—		—		—
	—		—		14,650,000		2,250,000
	—		—		457,163		—
	12,581		110		52,482		—
	2,358		543		9,779		5,601


	1,315,792,692		251,086,628		3,779,825,099		585,456,280








	12,887,024		1,086,463		52,986,228		8,005,450
	370,756,833		—		240,473,750		20,576,719
	653,706		100,931		2,024,661		290,066
	272,844		62,048		545,669		166,883
	268,660		—		15,275,539		2,336,730
	1,591		16,167		—		54,896
	3,121,094		—		—		—
	241,399		111,679		321,246		115,612


	388,203,151		1,377,288		311,627,093		31,546,356







	876,498,327		233,149,242		3,393,167,082		672,731,549
	513,934		180,388		5,106,354		357,241
	23,114,358		6,205,930		32,200,542		(124,210,520	)
	27,462,922		10,173,780		37,724,028		5,031,654


$	927,589,541	$	249,709,340	$	3,468,198,006	$	553,909,924




$	504,754,274	$	78,871,222	$	1,286,388,513	$	200,060,325
	24,832,523		—		1,936,131		—
	40,923,788		21,662,071		165,106,543		—
	235,595,799		148,407,916		1,845,854,795		352,252,469
	—		—		—		—
	110,918,780		—		161,560,961		1,317,304
	751,230		133,459		7,351,063		279,826
	9,813,147		634,672		—		—


$	927,589,541	$	249,709,340	$	3,468,198,006	$	553,909,924



	32,005,456		6,838,853		123,001,019		22,701,816
	1,574,600		—		185,823		—
	2,594,980		1,872,627		15,890,244		—
	14,961,432		12,830,371		177,063,002		39,948,197
	—		—		—		—
	7,049,796		—		15,519,182		148,748
	47,659		11,559		702,628		31,767
	622,914		54,931		—		—



	$15.77		$11.53		$10.46		$8.81
	15.77		—		10.42		—
	15.77		11.57		10.39		—
	15.75		11.57		10.42		8.82
	—		—		—		—
	15.73		—		10.41		8.86
	15.76		11.55		10.46		8.81
	15.75		11.55		—		—

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, 2010 (Unaudited)


	Enhanced
	Income Fund




Investment income:

Interest	$	8,738,353





Expenses:

Management fees		1,404,570
Distribution and Service fees^(a)		439,235
Transfer Agent fees^(a)		383,205
Custody and accounting fees		102,403
Registration fees		70,848
Printing and mailing costs		42,519
Professional fees		36,783
Trustee fees		9,200
Administration share fees		4,949
Service Share fees — Shareholder Administration Plan		—
Service Share fees — Service Plan		—
Other		16,843


Total expenses		2,510,555


Less — expense reductions		(271,409	)


Net expenses		2,239,146


NET INVESTMENT INCOME		6,499,207





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

Net realized gain (loss) from:
Investment transactions		1,188,743
Futures transactions		(4,879,685	)
Swap contracts		16,978
Net change in unrealized gain (loss) on:
Investments		5,160,171
Futures		(5,968,838	)
Swap contracts		27,154


Net realized and unrealized gain (loss) from investment, futures and swap transactions		(4,455,477	)


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	2,043,730


(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^(b)		Class R
Enhanced Income	$	432,740	$	6,495	$	—	$	—	$	225,025	$	844	$	—	$	156,544	$	792	$	—	$	—	$	—
Government Income		632,066		137,983		200,669		19,324		328,674		17,938		26,087		50,129		—		20,801		317		5,024
Inflation Protected Securities		100,941		—		109,511		1,350		52,490		—		14,236		28,354		—		—		84		351
Short Duration Government		1,820,997		15,961		865,765		—		946,918		2,075		112,550		397,858		—		35,662		2,831		—
Ultra-Short Duration Government		331,126		—		—		—		172,186		—		—		84,730		—		400		239		—


(b)	Commenced operations on July 30, 2010 for Enhanced Income Fund.

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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


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






$	12,259,508		$	2,782,798		$	27,701,160		$	5,140,035







	2,527,877			404,403			8,632,197			1,381,842
	990,042			211,802			2,702,723			331,126
	448,970			95,515			1,497,894			257,555
	143,869			29,679			177,447			95,777
	43,123			31,158			103,120			33,251
	77,822			22,163			152,160			37,435
	43,588			35,817			39,025			38,519
	9,695			9,550			12,074			8,490
	—			—			—			—
	130,005			—			222,888			2,500
	130,005			—			222,888			2,500
	15,764			4,964			9,869			11,045


	4,560,760			845,051			13,772,285			2,200,040


	(317,644	)		(177,507	)		(583,836	)		(38,772	)


	4,243,116			667,544			13,188,449			2,161,268


	8,016,392			2,115,254			14,512,711			2,978,767










	16,002,888			7,051,627			14,248,235			1,725,617
	7,150,313			(434,824	)		8,910,211			(7,292,408	)
	(750,634	)		—			(3,828,643	)		(235,693	)



	10,041,015			7,355,416			21,890,828			4,396,574
	2,542,979			142,056			4,204,436			(285,244	)
	453,611			—			(13,230,019	)		(2,427,130	)


	35,440,172			14,114,275			32,195,048			(4,118,284	)


$	43,456,564		$	16,229,529		$	46,707,759		$	(1,139,517	)

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 Fiscal
	September 30, 2010			Year Ended
	(Unaudited)			March 31, 2010


From operations:

Net investment income	$	6,499,207		$	12,967,876
Net realized gain (loss) from investment, futures and swap transactions		(3,673,964	)		(5,175,043	)
Net change in unrealized gain (loss) on investments, futures and swaps		(781,513	)		13,092,773


Net increase in net assets resulting from operations		2,043,730			20,885,606





Distributions to shareholders:

From net investment income
Class A Shares		(1,524,403	)		(2,763,836	)
Class B Shares		(881	)		(15,916	)
Class C Shares		—			—
Institutional Shares		(4,772,881	)		(10,281,671	)
Administration Shares		(19,303	)		(41,110	)
Service Shares		—			—
Class IR Shares^(a)		(2	)		—
Class R Shares		—			—
From net realized gains
Class A Shares		—			—
Class B Shares		—			—
Class C Shares		—			—
Institutional Shares		—			—
Service Shares		—			—
Class IR Shares^(a)		—			—
Class R Shares		—			—


Total distributions to shareholders		(6,317,470	)		(13,102,533	)





From share transactions:

Proceeds from sales of shares		362,479,094			1,624,662,395
Reinvestment of distributions		5,027,925			11,172,511
Cost of shares redeemed		(545,986,509	)		(693,033,379	)


Net increase (decrease) in net assets resulting from share transactions		(178,479,490	)		942,801,527


TOTAL INCREASE (DECREASE)		(182,753,230	)		950,584,600





Net assets:

Beginning of period		1,223,736,371			273,151,771


End of period	$	1,040,983,141		$	1,223,736,371


Accumulated undistributed net investment income	$	874,657		$	692,920


(a)	Commenced operations on July 30, 2010 for Enhanced Income Fund.

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 Fiscal			Six Months Ended			For the Fiscal
September 30, 2010			Year Ended			September 30, 2010			Year Ended
(Unaudited)			March 31, 2010			(Unaudited)			March 31, 2010




$	8,016,392		$	26,874,405		$	2,115,254		$	4,562,630
	22,402,567			6,663,390			6,616,803			431,661
	13,037,605			9,579,428			7,497,472			2,746,023


	43,456,564			43,117,223			16,229,529			7,740,314








	(4,338,191	)		(14,174,772	)		(688,551	)		(1,410,721	)
	(133,851	)		(721,929	)		—			—
	(193,645	)		(721,345	)		(105,946	)		(178,041	)
	(2,577,100	)		(7,425,830	)		(1,456,742	)		(1,849,447	)
	—			—			—			—
	(807,341	)		(2,322,780	)		—			—
	(4,759	)		(2,624	)		(1,268	)		(2,258	)
	(56,265	)		(32,235	)		(3,982	)		(1,796	)

	—			(8,168,166	)		—			—
	—			(546,856	)		—			—
	—			(594,749	)		—			—
	—			(3,830,459	)		—			—
	—			(1,546,942	)		—			—
	—			(3,224	)		—			—
	—			(34,135	)		—			—


	(8,111,152	)		(40,126,046	)		(2,256,489	)		(3,442,263	)







	182,805,877			446,391,884			24,430,453			182,279,632
	6,138,049			30,390,479			1,706,773			2,644,124
	(238,434,284	)		(536,139,922	)		(30,092,518	)		(49,002,214	)


	(49,490,358	)		(59,357,559	)		(3,955,292	)		135,921,542


	(14,144,946	)		(56,366,382	)		10,017,748			140,219,593







	941,734,487			998,100,869			239,691,592			99,471,999


$	927,589,541		$	941,734,487		$	249,709,340		$	239,691,592


$	513,934		$	608,694		$	180,388		$	321,623

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						Ultra-Short Duration Government Fund
	For the						For the
	Six Months Ended			For the Fiscal			Six Months Ended			For the Fiscal
	September 30, 2010			Year Ended			September 30, 2010			Year Ended
	(Unaudited)			March 31, 2010			(Unaudited)			March 31, 2010


From operations:

Net investment income	$	14,512,711		$	48,212,506		$	2,978,767		$	7,374,070
Net realized gain (loss) from investment, futures and swap transactions		19,329,803			51,061,401			(5,802,484	)		(4,522,054	)
Net change in unrealized gain (loss) on investments, futures and swaps		12,865,245			(4,698,637	)		1,684,200			9,544,250


Net increase (decrease) in net assets resulting from operations		46,707,759			94,575,270			(1,139,517	)		12,396,266





Distributions to shareholders:

From net investment income
Class A Shares		(4,201,092	)		(18,704,864	)		(712,247	)		(3,371,301	)
Class B Shares		(530	)		(51,616	)		—			—
Class C Shares		(8,527	)		(1,225,533	)		—			—
Institutional Shares		(9,106,743	)		(25,664,577	)		(1,866,631	)		(5,340,613	)
Service Shares		(374,519	)		(1,762,344	)		(3,701	)		(47,305	)
Class IR Shares		(17,809	)		(16,145	)		(1,457	)		(2,575	)
From net realized gains
Class A Shares		—			(23,253,713	)		—			—
Class B Shares		—			(81,035	)		—			—
Class C Shares		—			(2,885,809	)		—			—
Institutional Shares		—			(26,899,793	)		—			—
Service Shares		—			(2,864,628	)		—			—
Class IR Shares		—			(21,931	)		—			—
From capital
Class A Shares		—			—			—			(85,456	)
Institutional Shares		—			—			—			(135,375	)
Service Shares		—			—			—			(1,199	)
Class IR Shares		—			—			—			(65	)


Total distributions to shareholders		(13,709,220	)		(103,431,988	)		(2,584,036	)		(8,983,889	)





From share transactions:

Proceeds from sales of shares		1,026,929,810			3,928,313,948			201,853,116			1,058,504,273
Reinvestment of distributions		10,384,302			83,676,730			1,562,693			5,705,085
Cost of shares redeemed		(1,403,490,651	)		(2,200,254,956	)		(439,468,767	)		(516,606,081	)


Net increase (decrease) in net assets resulting from share transactions		(366,176,539	)		1,811,735,722			(236,052,958	)		547,603,277


TOTAL INCREASE (DECREASE)		(333,178,000	)		1,802,879,004			(239,776,511	)		551,015,654





Net assets:

Beginning of period		3,801,376,006			1,998,497,002			793,686,435			242,670,781


End of period	$	3,468,198,006		$	3,801,376,006		$	553,909,924		$	793,686,435


Accumulated undistributed (distribution in excess of) net investment income	$	5,106,354		$	4,302,863		$	357,241		$	(37,490	)

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, 2010 (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, Administration and IR	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


*	Effective November 2, 2009, Class B Shares are no longer available for purchase by new or existing shareholders except under certain circumstances.

Class A Shares of the Enhanced Income, Government Income, Inflation Protected Securities, Short Duration Government and Ultra-Short Duration Government Funds are sold with a front-end sales charge of up to 1.50%, 3.75%, 3.75%, 1.50% and 1.50%, respectively. Class B Shares were sold with a contingent deferred sales charge that declines from 5.00% to zero, depending upon the period of time the shares are held. Class C Shares are sold with a contingent deferred sales charge of 1.00% during the first 12 months. Effective September 30, 2010, the contingent deferred sales charge on Class C Shares of the Short Duration Government Fund was reduced to 0.65%. Institutional, Administration, Service, Class IR and Class R Shares are not subject to a sales charge. Class IR Shares of the Enhanced Income Fund commenced operations on July 30, 2010.

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

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. 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 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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2010 (Unaudited)


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

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.

B. 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 Fund 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. Realized gains and losses resulting from principal paydowns on mortgage-backed and asset-backed securities are included in interest income. Market discounts, original issue discount and market premiums on debt securities are accreted/amortized to interest income over the life of the security with a corresponding adjustment in the cost basis of that security. In addition, it is the Funds’ policy to accrue for 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.

Investment income and unrealized and realized gains or losses are allocated daily to each class of shares of the respective Fund based upon the relative proportion of net assets of each class.

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

D. Federal Taxes and Distributions to Shareholders — It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Code”), applicable to regulated investment companies (mutual funds) and to distribute each year substantially all of its investment company taxable income and capital gains to its shareholders. Accordingly, the Funds are not required to make any provisions for the payment of federal income tax. 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.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

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. The Funds’ capital accounts on the Statements of Assets and Liabilities reflect permanent GAAP/tax differences based on the appropriate tax character.

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

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 are treated as a proportionate reduction to the cost basis of the securities and excess amounts are recorded as gains.

G. Mortgage Dollar Rolls — Certain Funds 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 date. The Funds treat dollar rolls as two separate transactions: one involving the purchase of a security and a separate transaction involving a sale.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2010 (Unaudited)


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

During the settlement period between sale and repurchase, the Funds will not be entitled to accrue 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 counterparty.

H. Repurchase Agreements — The Funds may enter into repurchase agreements which 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 sub-custodians under tri-party repurchase agreements.

Pursuant to exemptive relief granted by the Securities and Exchange Commission (“SEC”) and terms and conditions contained therein, the Funds, together with other registered investment companies having management agreements with GSAM, or its affiliates, may transfer uninvested cash into joint accounts, the daily aggregate balance of which is invested in one or more repurchase agreements. 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. Swap Contracts — The Funds may enter into swap transactions for hedging purposes or to seek to increase total return. 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 as collateral on these contracts which is recorded as an asset and/or liability. The Funds must set aside liquid assets, or engage in other appropriate measures to cover their obligations under these contracts.

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. Upfront payments made and/or received by the Funds, are recorded as an asset and/or liability and realized gains or losses are recognized ratably over the contract’s term/event, with the exception of forward starting interest rate swaps, whose realized gains or losses are recognized ratably from the effective start date. Periodic payments received or made on swap contracts are recorded as realized gains or losses. Gains or losses are realized upon termination of a swap contract and are recorded on the Statements of Operations. The Funds invest in the following types of swaps:

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

A credit default swap is an agreement that involves one party making a stream of payments to another party in exchange for the right to receive protection on a reference security or obligation. A Fund may use credit default swaps to provide a measure of protection against defaults of the reference security or obligation or to take a short position with respect to the likelihood of default. A Fund’s investment in credit default swaps may involve greater risks than if the Fund had invested in the referenced obligation directly. Credit events are contract specific but may include bankruptcy, failure to pay, restructuring and obligation acceleration. If a Fund buys protection through a credit default swap and no credit event occurs, its payments are limited to the periodic payments previously made to the counterparty. Upon the occurrence of a

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

specified credit event, a Fund, as a buyer of credit protection, is entitled to receive an amount equal to the notional amount of the swap and deliver to the seller the defaulted reference obligation in a physically settled trade. A Fund may also receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap reduced by the recovery value of the reference obligation in a cash settled trade.

As a seller of protection, a Fund generally receives a payment stream throughout the term of the swap, provided that there is no credit event. In addition, if the Funds sell protection through a credit default swap, the Funds could suffer a loss because the value of the referenced obligation may be less than the premium payments received. Upon the occurrence of a specified credit event, the Funds, as sellers of credit protection, may be required to take possession of the defaulted reference obligation and pay the buyer an amount equal to the notional amount of the swap in a physically settled trade. The Funds may also pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap reduced by the recovery value of the reference obligation in a cash settled trade. Recovery values are at times established through the credit event auction process in which market participants are ensured that a transparent price has been set for the defaulted security or obligation. In addition, the Funds are entitled to a return of any assets, which have been pledged as collateral to the counterparty.

The Funds’ credit default swaps are disclosed in the Additional Investment Information section of the Schedules of Investments. The maximum potential amount of future payments (undiscounted) that the Funds as sellers of protection could be required to make under a credit default swap would be an amount equal to the notional amount of the agreement. These potential amounts would be partially offset by any recovery values of the respective referenced obligations or net amounts received from a settlement of a credit default swap for the same reference security or obligation where the Funds bought credit protection.

J. 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.

K. When-Issued Securities and Forward Commitments — The Funds may purchase when-issued securities, including TBA (“To Be Announced”) securities and enter into contracts to purchase or sell securities for a fixed price at a future date beyond the customary settlement period. When-issued securities are securities that have been authorized, but not yet issued in the market. 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.

3. 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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2010 (Unaudited)


3. FAIR VALUE OF INVESTMENTS (continued)

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 significant inputs are observable (including, but not limited to, quoted prices for similar securities, interest rates, foreign exchange rates and credit spreads), either directly or indirectly;

Level 3 — Prices or valuations that require significant unobservable inputs (including GSAM’s assumptions in determining fair value measurement).

The following is a summary of the Funds’ investments categorized in the fair value hierarchy, as of September 30, 2010:


Enhanced Income	Level 1			Level 2			Level 3

Assets
Fixed Income
Corporate Obligations	$	—		$	406,861,536		$	—
U.S. Treasuries and/or Other U.S. Government Obligations and Agencies		39,253,990			40,062,223			—
Asset-Backed Securities		—			104,362,088			147,610
Foreign Debt Obligations		—			43,635,612			—
Government Guarantee Obligations		—			364,738,570			—
Short-term Investments		—			21,400,000			—
Derivatives		509,772			81,883			—


Total	$	39,763,762		$	981,141,912		$	147,610


Liabilities
Derivatives	$	(6,031,827	)	$	(10,154	)	$	—

The following is a reconciliation of Level 3 investments for the six months ended September 30, 2010:


	Fixed Income
	Asset-Backed
	Securities

Beginning Balance as of April 1, 2010	$	151,218
Realized gain (loss)		5
Unrealized gain (loss) relating to instruments still held at reporting date		21,899
Net purchases (sales)		(25,512	)
Transfers into Level 3		—
Transfers out of Level 3		—


Ending Balance as of September 30, 2010	$	147,610

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


3. FAIR VALUE OF INVESTMENTS (continued)


Government Income	Level 1			Level 2			Level 3

Assets
Fixed Income
Mortgage-Backed Obligations	$	—		$	457,034,881		$	—
U.S. Treasuries and/or Other U.S. Government Obligations and Agencies		191,565,768			78,816,789			—
Asset-Backed Securities		—			17,281,561			—
Government Guarantee Obligations		—			110,135,171			—
Municipal Debt Obligations		—			2,336,600			—
Short-term Investments		—			208,600,000			—
Derivatives		1,308,765			—			—


Total	$	192,874,533		$	874,205,002		$	—


Liabilities
Fixed Income — Mortgage-Backed Obligations
Forward Sales Contracts	$	—		$	(3,121,094	)	$	—
Derivatives		(68,370	)		(268,660	)		—


Total	$	(68,370	)	$	(3,389,754	)	$	—




Inflation Protected Securities	Level 1			Level 2			Level 3

Assets
U.S. Treasury Obligations	$	245,646,192		$	—		$	—
Short-term Investments		—			4,200,000			—
Derivatives		166,863			—			—


Total	$	245,813,055		$	4,200,000		$	—


Liabilities
Derivatives	$	(55,002	)	$	—		$	—




Short Duration Government	Level 1			Level 2			Level 3

Assets
Fixed Income
Mortgage-Backed Obligations	$	—		$	591,221,278		$	—
U.S. Treasuries and/or Other U.S. Government Obligations and Agencies		1,340,915,513			734,043,740			—
Government Guarantee Obligations		—			931,126,674			—
Short-term Investments		—			104,300,000			—
Derivatives		3,553,134			—			—


Total	$	1,344,468,647		$	2,360,691,692		$	—


Liabilities
Derivatives	$	(95,729	)	$	(15,275,539	)	$	—

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2010 (Unaudited)


3. FAIR VALUE OF INVESTMENTS (continued)


Ultra-Short Duration Government	Level 1			Level 2			Level 3

Assets
Fixed Income
Mortgage-Backed Obligations	$	—		$	110,292,719		$	—
U.S. Treasuries and/or Other U.S. Government Obligations and Agencies		130,023,165			72,436,424			—
Asset-Backed Securities		—			86,517,060			—
Government Guarantee Obligations		—			152,414,893			—
Short-term Investments		—			17,800,000			—
Derivatives		185,941			—			—


Total	$	130,209,106		$	439,461,096		$	—


Liabilities
Derivatives	$	(313,857	)	$	(2,336,730	)	$	—

4. AGREEMENTS AND AFFILIATED TRANSACTIONS

A. Management Agreement — Under the Agreement, 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 paid monthly, equal to an annual percentage rate of each Fund’s average daily net assets.

For the six months ended September 30, 2010, contractual and effective net management fees with GSAM were at the following rates:


	Contractual Management Rate																		Effective Net
	First			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			0.45			0.45


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


*	GSAM agreed to waive a portion of its management fee in order to achieve the effective net management rates above, through at least July 29, 2011, and prior to such date GSAM may not terminate the arrangement without the approval of the Trustees.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


4. AGREEMENTS AND AFFILIATED TRANSACTIONS (continued)

B. Distribution and Service Plans — The Trust, on behalf of each Fund, has adopted Distribution and Service Plans (the “Plans”). Under the Plans, Goldman Sachs, which serves as distributor (the “Distributor”), is entitled to a fee, computed daily and paid monthly, for distribution services and personal and account maintenance services, which may then be paid by Goldman Sachs to authorized dealers, 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 Distribution Plan to compensate service organizations for personal and account maintenance services and expenses as long as such total compensation does not exceed the maximum cap on “service fees” imposed by the Financial Industry Regulatory Authority.

Goldman Sachs has agreed to waive a portion of the Distribution and Service fees applicable to the Short Duration Government Fund’s Class B and Class C Shares in an amount equal to a minimum of 0.15% of the average daily net assets attributable to Class B Shares and (effective September 30, 2010) equal to a minimum of 0.35% of the average daily net assets attributable to Class C Shares. These arrangements will remain in place through at least July 29, 2011, and prior to such date Goldman Sachs may not terminate the arrangement without the approval of the Trustees.

For the six months ended September 30, 2010, Goldman Sachs waived a portion of the Distribution and Service fees equal to 0.20% and 0.19% of the average daily net assets attributable to the Class B and Class C Shares of Short Duration Government Fund, respectively.

C. Distribution Agreement — Goldman Sachs, as Distributor of the shares of the Funds pursuant to a Distribution Agreement, 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, 2010, 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	$	2,100	$	—		N/A


Government Income		15,600		—	$	—


Inflation Protected Securities		11,100		N/A		—


Short Duration Government		26,900		—		—


Ultra-Short Duration Government		2,400		N/A		N/A

D. Service Plan, Shareholder Administration Plan and Administration Plan — The Trust, on behalf of each Fund that offers Service Shares, has adopted a Service Plan and a Shareholder Administration Plan. 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 maintenance and shareholder administration services to their customers who are beneficial owners of such shares. The Service Plan and Shareholder Administration Plan each provide for compensation to the service organizations in an amount equal to, on an annual basis, 0.25% (0.50% in aggregate) of the average daily net assets of the Service Shares. The

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2010 (Unaudited)


4. AGREEMENTS AND AFFILIATED TRANSACTIONS (continued)

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 of the Administration Shares.

E. Transfer Agency Agreement — Goldman Sachs also serves as the transfer agent of the Funds for a fee pursuant to a Transfer Agency Agreement. The fees charged for such transfer agency services are computed daily and paid 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.

F. Other Expense Agreements and Affiliated Transactions — GSAM has agreed to limit certain “Other Expense” of the Funds (excluding management fees, distribution and service fees, transfer agent fees and expenses, service fees and shareholder administration fees (as applicable), Administration Share fees (as applicable), taxes, interest, brokerage fees and litigation, indemnification, shareholder meetings and other extraordinary expenses, exclusive of any custody and transfer agent fee credit reductions) to the extent such expenses exceed, on an annual basis, a percentage rate of the average daily net assets of each Fund. Such Other Expense reimbursements, if any, are computed daily and paid monthly. In addition, the Funds are not obligated to reimburse GSAM for prior fiscal year expense reimbursements, if any. The Other Expense limitations for the Enhanced Income, Government Income, Inflation Protected Securities, Short Duration Government and Ultra-Short Duration Government Funds as an annual percentage rate of average daily net assets are 0.064%, 0.004%, 0.044%, 0.004% and 0.054%, respectively. These Other Expense reimbursements will remain in place through at least July 29, 2011, and prior to such date GSAM may not terminate the arrangements without the approval of the Trustees. In addition, the Funds have entered into certain offset arrangements with the custodian and the transfer agent, which may result in a reduction of the Funds’ expenses.

For the six months ended September 30, 2010, these expense reductions, including any fee waivers and Other Expense reimbursements, were as follows (in thousands):


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

Enhanced Income	$	270	$	—		N/A	$	1	$	—	$	271


Government Income		—		—	$	—		3		315		318


Inflation Protected Securities		98		N/A		—		—		80		178


Short Duration Government		—		3		159		4		418		584


Ultra-Short Duration Government		—		N/A		N/A		1		38		39

As of September 30, 2010, the amounts owed to affiliates of the Funds were as follows (in thousands):


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

Enhanced Income	$	179	$	70	$	61	$	—	$	310


Government Income		417		163		74		—		654


Inflation Protected Securities		51		34		16		—		101


Short Duration Government		1,393		392		240		—		2,025


Ultra-Short Duration Government		195		47		36		12		290

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


4. AGREEMENTS AND AFFILIATED TRANSACTIONS (continued)

G. Line of Credit Facility — As of September 30, 2010, the Funds participated in a $580,000,000 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 could increase the credit amount by an additional $340,000,000, for a total of up to $920,000,000. This facility is to be used solely for temporary or emergency purposes. The interest rate on borrowings is based on the federal funds rate. The facility also requires a fee to be paid by the Funds based on the amount of the commitment that has not been utilized. For the six months ended September 30, 2010, the Funds did not have any borrowings under the facility. Prior to May 11, 2010, the amount available through the facility was $660,000,000.

H. Other Transactions with Affiliates — For the six months ended September 30, 2010, Goldman Sachs earned approximately $29,200, $34,900, $3,900, $124,500 and $23,600 in brokerage commissions from portfolio transactions, including futures transactions executed with Goldman Sachs as the Futures Commission Merchant, on behalf of the Enhanced Income, Government Income, Inflation Protected Securities, Short Duration Government and Ultra-Short Duration Government Funds, respectively.

5. INVESTMENTS IN 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 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.

The following tables set forth, by certain risk types, the gross value of the Funds’ derivative contracts for trading activities as of September 30, 2010. The values in the tables below exclude the effects of cash collateral received or posted pursuant to these derivative contracts, and therefore are not representative of the Funds’ net exposure.

Enhanced Income

Statements of Assets

and Liabilities

Risk

Location

Assets

Location

Liabilities

Interest rate

Due from broker — variation margin

509,772

^(a)

Due to broker — variation margin

(6,031,827

)^(a)

Credit

Receivables for swap contracts, at value

81,883

Payables for swap contracts, at value

(10,154

)^(b)

Total

591,655

(6,041,981

)

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2010 (Unaudited)


5. INVESTMENTS IN DERIVATIVES (continued)

Government Income

Statements of Assets

and Liabilities

Risk

Location

Assets

Location

Liabilities

Interest rate

Due from broker — variation margin

1,308,765^(a

⁾

Payables for swap contracts, at value;
Due to broker — variation margin

(337,030

)^(a)(b)

Inflation Protected Securities

Statements of Assets

and Liabilities

Risk

Location

Assets

Location

Liabilities

Interest rate

Due from broker — variation margin

166,863^(a

⁾

Due to broker — variation margin

(55,002

)^(a)

Short Duration Government

Statements of Assets

and Liabilities

Risk

Location

Assets

Location

Liabilities

Interest rate

Due from broker — variation margin

3,553,134^(a

⁾

Payables for swap contracts, at value; Due to broker — variation margin

(15,371,268

)^(a)(b)

Ultra-Short Duration Government

Statements of Assets

and Liabilities

Risk

Location

Assets

Location

Liabilities

Interest rate

Due from broker — variation margin

185,941^(a

⁾

Payables for swap contracts, at value; Due to broker — variation margin

(2,650,587

)^(a)(b)


(a)	Includes unrealized gain (loss) on futures contracts described in the Additional Investment Information sections of the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

(b)

Aggregate of amounts include $10,154, $268,660, $15,275,539 and $2,336,730 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 tables set forth, by certain risk types, the Funds’ gains (losses) related to derivative activities and their indicative volumes for the six months ended September 30, 2010. These gains (losses) should be considered in the context that these contracts may have been executed to economically hedge securities and accordingly, gains (losses) on such

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


5. INVESTMENTS IN DERIVATIVES (continued)

contracts may offset (losses) gains attributable to securities. These gains (losses) are included in “Net realized gain (loss)” or “Net change in unrealized gain (loss)” on the Statements of Operations:

Enhanced Income


		Net			Net Change in			Average
		Realized			Unrealized			Number of
Risk	Statements of Operations Location	Gain (Loss)			Gain (Loss)			Contracts^(a)

Interest rate	Net realized gain (loss) from futures transactions and swap contracts/Net change in unrealized gain (loss) on futures and swap contracts	$	(4,888,312	)	$	(5,968,838	)		3,160


Credit	Net realized gain (loss) from swap contracts/Net change in unrealized gain (loss) on swap contracts		25,605			27,154			2


Total		$	(4,862,707	)	$	(5,941,684	)		3,162

Government Income

Net

Net Change in

Average

Realized

Unrealized

Number of

Risk

Statements of Operations Location

Gain (Loss)

Contracts^(a)

Interest rate

Net realized gain (loss) from futures transactions and swap contracts/Net change in unrealized gain (loss) on futures and swap contracts

6,399,679

2,996,590

1,186

Inflation Protected Securities

Net

Net Change in

Average

Realized

Unrealized

Number of

Risk

Statements of Operations Location

Gain (Loss)

Contracts^(a)

Interest rate

Net realized gain (loss) from futures transactions/Net change in unrealized gain (loss) on futures

(434,824

)

142,056

242

Short Duration Government

Net

Net Change in

Average

Realized

Unrealized

Number of

Risk

Statements of Operations Location

Gain (Loss)

Contracts^(a)

Interest rate

Net realized gain (loss) from futures transactions and swap contracts/Net change in unrealized gain (loss) on futures and swap contracts

5,081,568

(9,025,583

)

9,349

Ultra-Short Duration Government

Net

Net Change in

Average

Realized

Unrealized

Number of

Risk

Statements of Operations Location

Gain (Loss)

Contracts^(a)

Interest rate

Net realized gain (loss) from futures transactions and swap contracts/Net change in unrealized gain (loss) on futures and swap contracts

(7,528,101

)

(2,712,374

)

1,353


(a)	Average number of contracts is based on the average of month end balances for the six months ended September 30, 2010.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2010 (Unaudited)

6. PORTFOLIO SECURITIES TRANSACTIONS

The cost of purchases and proceeds from sales and maturities of long-term securities for the six months ended September 30, 2010, 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	$	152,426,852	$	262,176,770	$	220,084,832	$	254,270,045


Government Income		1,702,021,946		25,019,410		1,699,648,028		66,885,413


Inflation Protected Securities		212,136,584		—		204,051,139		—


Short Duration Government		2,213,047,575		206,611,573		1,898,529,408		228,841,078


Ultra-Short Duration Government		170,382,931		25,679,137		305,779,303		62,724,858

7. TAX INFORMATION

As of the Funds’ most recent fiscal year end, March 31, 2010, 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 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 2018		(1,658,767	)		—			—			—			(21,924,176	)


Total capital loss carryforward	$	(13,450,105	)	$	—		$	—		$	—		$	(117,296,352	)


Timing differences (Income Distribution Payable, Post-October Losses and Straddles)	$	(2,329,303	)	$	(2,808,210	)	$	(617,194	)	$	(1,511,146	)	$	(1,170,213	)


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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


7. TAX INFORMATION (continued)

As of September 30, 2010, the Funds’ aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes were as follows:


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

Tax Cost	$	1,007,039,584		$	1,038,837,899		$	239,834,834		$	3,651,290,732		$	560,715,693


Gross unrealized gain		13,946,425			28,552,105			10,061,919			52,619,362			9,468,474
Gross unrealized loss		(524,380	)		(1,619,234	)		(50,561	)		(2,302,889	)		(699,906	)


Net unrealized security gain	$	13,422,045		$	26,932,871		$	10,011,358		$	50,316,473		$	8,768,568

The difference between GAAP-basis and tax-basis unrealized gains (losses), as of the most recent fiscal year end, is attributable primarily to wash sales and net mark-to-market gains (losses) on regulated futures contracts, and differences related to the tax treatment of swap transactions, premium amortization, sales of inflation protected securities and the accretion of market discount.

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.

8. OTHER RISKS

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 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.

9. 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.

10. SUBSEQUENT EVENTS

Subsequent events after the balance sheet date have been evaluated through the date the financial statements were issued. Other than the item discussed below, GSAM has concluded that there is no impact requiring adjustment or disclosure in the financial statements.

Effective November 1, 2010, GSAM has voluntarily agreed to waive a portion of its management fee equal on an annualized basis to 0.05% of each of the Short Duration Government Fund’s and Ultra-Short Duration Government Fund’s average daily net assets. These management fee waivers are temporary and may be modified or terminated at any time at the option of GSAM, without shareholder approval.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2010 (Unaudited)

11. SUMMARY OF SHARE TRANSACTIONS

Share activity is as follows:


	Enhanced Income Fund

	For the Six Months Ended
	September 30, 2010						For the Fiscal Year Ended
	(Unaudited)						March 31, 2010

	Shares			Dollars			Shares			Dollars

Class A Shares
Shares sold		12,162,211		$	117,191,102			52,050,217		$	502,340,979
Reinvestment of distributions		129,320			1,245,934			225,427			2,176,768
Shares converted from Class B^(a)		3,898			37,500			10,539			101,757
Shares redeemed		(16,065,957	)		(154,858,152	)		(18,873,395	)		(182,388,201	)


		(3,770,528	)		(36,383,616	)		33,412,788			322,231,303


Class B Shares
Shares sold		2,317			22,309			12,259			117,831
Reinvestment of distributions		78			751			1,454			13,969
Shares converted to Class A^(a)		(3,902	)		(37,500	)		(10,553	)		(101,757	)
Shares redeemed		(21,711	)		(208,935	)		(92,418	)		(889,443	)


		(23,218	)		(223,375	)		(89,258	)		(859,400	)


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


		—			—			—			—


Institutional Shares
Shares sold		25,110,168			241,822,782			115,908,510			1,116,981,401
Reinvestment of distributions		391,316			3,766,308			927,612			8,944,718
Shares redeemed		(40,492,118	)		(389,958,427	)		(52,527,669	)		(506,983,238	)


		(14,990,634	)		(144,369,337	)		64,308,453			618,942,881


Administration Shares
Shares sold		356,395			3,441,891			542,004			5,222,184
Reinvestment of distributions		1,546			14,930			3,832			37,056
Shares redeemed		(99,421	)		(960,985	)		(286,375	)		(2,772,497	)


		258,520			2,495,836			259,461			2,486,743


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


		—			—			—			—


Class IR Shares^(b)
Shares sold		105			1,010			—			—
Reinvestment of distributions		—			2			—			—
Shares redeemed		(1	)		(10	)		—			—


		104			1,002			—			—


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


		—			—			—			—


NET INCREASE (DECREASE)		(18,525,756	)	$	(178,479,490	)		97,891,444		$	942,801,527


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


(b)	Commenced operations on July 30, 2010 for Enhanced Income Fund.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS


Government Income Fund												Inflation Protected Securities Fund

For the Six Months Ended												For the Six Months Ended
September 30, 2010						For the Fiscal Year Ended						September 30, 2010						For the Fiscal Year Ended
(Unaudited)						March 31, 2010						(Unaudited)						March 31, 2010

Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars


	4,624,023		$	71,850,357			13,110,920		$	199,462,105			947,306		$	10,573,610			6,242,927		$	67,237,095
	239,367			3,725,689			1,242,746			18,903,595			45,194			509,276			102,958			1,114,843
	214,256			3,321,847			314,978			4,770,525			—			—			—			—
	(6,888,598	)		(106,703,211	)		(18,787,648	)		(285,880,618	)		(1,796,317	)		(20,151,099	)		(3,067,050	)		(33,080,741	)


	(1,810,952	)		(27,805,318	)		(4,119,004	)		(62,744,393	)		(803,817	)		(9,068,213	)		3,278,835			35,271,197



	78,910			1,225,045			332,142			5,054,976			—			—			—			—
	7,237			112,516			68,505			1,041,525			—			—			—			—
	(214,256	)		(3,321,847	)		(314,978	)		(4,770,525	)		—			—			—			—
	(236,136	)		(3,660,245	)		(1,178,746	)		(17,932,018	)		—			—			—			—


	(364,245	)		(5,644,531	)		(1,093,077	)		(16,606,042	)		—			—			—			—



	514,445			7,972,222			1,151,336			17,500,187			251,063			2,824,147			1,798,539			19,471,653
	8,664			134,788			59,325			901,920			5,249			59,252			9,825			106,898
	(513,551	)		(7,950,013	)		(1,399,365	)		(21,253,194	)		(393,443	)		(4,425,457	)		(452,254	)		(4,904,923	)


	9,558			156,997			(188,704	)		(2,851,087	)		(137,131	)		(1,542,058	)		1,356,110			14,673,628



	4,662,787			72,400,417			11,486,124			174,633,341			948,191			10,674,856			8,711,530			95,008,925
	100,124			1,556,832			456,308			6,932,784			100,190			1,133,026			130,227			1,418,329
	(6,555,381	)		(101,853,183	)		(11,419,506	)		(173,974,644	)		(479,486	)		(5,397,407	)		(1,012,373	)		(10,912,515	)


	(1,792,470	)		(27,895,934	)		522,926			7,591,481			568,895			6,410,475			7,829,384			85,514,739



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


	—			—			—			—			—			—			—			—



	1,445,643			22,423,351			2,901,744			44,026,081			—			—			—			—
	35,232			547,230			167,232			2,538,443			—			—			—			—
	(1,048,715	)		(16,183,629	)		(2,416,446	)		(36,626,573	)		—			—			—			—


	432,160			6,786,952			652,530			9,937,951			—			—			—			—



	34,356			534,264			14,678			224,910			20			221			18,640			202,043
	305			4,759			384			5,848			112			1,268			206			2,258
	(2,750	)		(42,744	)		(24	)		(357	)		(4	)		(42	)		(8,397	)		(91,118	)


	31,911			496,279			15,038			230,401			128			1,447			10,449			113,183



	414,528			6,400,221			360,487			5,490,284			31,830			357,619			33,132			359,916
	3,613			56,235			4,362			66,364			350			3,951			164			1,796
	(131,876	)		(2,041,259	)		(31,064	)		(472,518	)		(10,357	)		(118,513	)		(1,187	)		(12,917	)


	286,265			4,415,197			333,785			5,084,130			21,823			243,057			32,109			348,795


	(3,207,773	)	$	(49,490,358	)		(3,876,506	)	$	(59,357,559	)		(350,102	)	$	(3,955,292	)		12,506,887		$	135,921,542

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

Notes to Financial Statements (continued)

September 30, 2010 (Unaudited)

11. SUMMARY OF SHARE TRANSACTIONS (continued)

Share activity is as follows:


	Short Duration Government Fund

	For the Six Months Ended
	September 30, 2010						For the Fiscal Year Ended
	(Unaudited)						March 31, 2010

	Shares			Dollars			Shares			Dollars

Class A Shares
Shares sold		42,959,150		$	447,347,720			143,161,885		$	1,492,425,487
Reinvestment of distributions		331,089			3,452,973			3,317,607			34,455,884
Shares converted from Class B^(a)		113,068			1,177,715			32,485			337,322
Shares redeemed		(65,397,114	)		(681,391,884	)		(91,650,563	)		(955,026,905	)


		(21,993,807	)		(229,413,476	)		54,861,414			572,191,788


Class B Shares
Shares sold		1			14			4,953			51,263
Reinvestment of distributions		42			427			10,290			106,429
Shares converted to Class A^(a)		(113,504	)		(1,177,715	)		(32,606	)		(337,322	)
Shares redeemed		(68,398	)		(711,605	)		(166,886	)		(1,729,747	)


		(181,859	)		(1,888,879	)		(184,249	)		(1,909,377	)


Class C Shares
Shares sold		2,489,905			25,769,198			11,486,640			118,982,739
Reinvestment of distributions		556			5,758			256,321			2,641,555
Shares redeemed		(4,020,913	)		(41,607,376	)		(6,262,554	)		(64,839,887	)


		(1,530,452	)		(15,832,420	)		5,480,407			56,784,407


Institutional Shares
Shares sold		50,477,188			523,896,126			207,410,555			2,155,160,663
Reinvestment of distributions		632,836			6,577,263			4,079,905			42,251,223
Shares redeemed		(59,949,107	)		(622,832,487	)		(107,963,854	)		(1,122,410,650	)


		(8,839,083	)		(92,359,098	)		103,526,606			1,075,001,236


Service Shares
Shares sold		2,340,565			24,270,797			15,186,489			157,732,589
Reinvestment of distributions		31,853			330,598			405,291			4,186,708
Shares redeemed		(5,326,195	)		(55,235,443	)		(5,361,369	)		(55,566,339	)


		(2,953,777	)		(30,634,048	)		10,230,411			106,352,958


Class IR Shares
Shares sold		540,619			5,645,955			380,645			3,961,207
Reinvestment of distributions		1,656			17,283			3,365			34,931
Shares redeemed		(164,159	)		(1,711,856	)		(65,488	)		(681,428	)


		378,116			3,951,382			318,522			3,314,710


NET INCREASE (DECREASE)		(35,120,862	)	$	(366,176,539	)		174,233,111		$	1,811,735,722


(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


Ultra-Short Duration Government Fund

For the Six Months Ended
September 30, 2010						For the Fiscal Year Ended
(Unaudited)						March 31, 2010

Shares			Dollars			Shares			Dollars


	10,172,616		$	89,861,531			47,117,500		$	416,783,086
	67,301			594,028			336,826			2,978,496
	—			—			—			—
	(21,788,665	)		(192,348,914	)		(24,376,504	)		(215,757,265	)


	(11,548,748	)		(101,893,355	)		23,077,822			204,004,317



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


	—			—			—			—



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


	—			—			—			—



	12,613,262			111,452,543			72,246,719			639,733,722
	109,255			965,249			304,136			2,692,152
	(27,732,639	)		(245,035,227	)		(33,764,814	)		(299,019,388	)


	(15,010,122	)		(132,617,435	)		38,786,041			343,406,486



	57,088			507,443			162,443			1,445,321
	221			1,959			3,580			31,797
	(212,111	)		(1,882,676	)		(193,923	)		(1,724,985	)


	(154,802	)		(1,373,274	)		(27,900	)		(247,867	)



	3,571			31,599			61,284			542,144
	165			1,457			299			2,640
	(22,887	)		(201,950	)		(11,809	)		(104,443	)


	(19,151	)		(168,894	)		49,774			440,341


	(26,732,823	)	$	(236,052,958	)		61,885,737		$	547,603,277

GOLDMAN SACHS ENHANCED INCOME FUND

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period


				Income (loss) from
				investment operations
												Distribution
		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)


	2010 - A	$	9.67	$	0.04	$	(0.03	)	$	0.01		$	(0.04	)
	2010 - B		9.66		0.01		(0.04	)		(0.03	)		(0.01	)
	2010 - Institutional		9.66		0.06		(0.03	)		0.03			(0.06	)
	2010 - Administration		9.69		0.05		(0.03	)		0.02			(0.05	)
	2010 - IR (Commenced July 30, 2010)		9.62		0.02		—			0.02			(0.02	)


FOR THE FISCAL YEARS ENDED MARCH 31,


	2010 - A		9.51		0.12		0.19			0.31			(0.15	)
	2010 - B		9.50		0.07		0.17			0.24			(0.08	)
	2010 - Institutional		9.50		0.16		0.18			0.34			(0.18	)
	2010 - Administration		9.53		0.14		0.18			0.32			(0.16	)




	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	)


*	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


														Ratio of
					Net assets,			Ratio of			Ratio of			net investment
Net asset					end of			net expenses			total expenses			income			Portfolio
value, end		Total			period			to average			to average			to average			turnover
of period		return^(b)			(in 000s)			net assets			net assets			net assets			rate




$	9.64		0.13	%	$	334,243			0.63	%^(c)		0.68	%^(c)		0.91	%^(c)		40	%
	9.62		(0.34	)		1,165			1.38	^(c)		1.43	^(c)		0.17	^(c)		40
	9.63		0.30			700,272			0.29	^(c)		0.34	^(c)		1.25	^(c)		40
	9.66		0.18			5,302			0.54	^(c)		0.59	^(c)		1.00	^(c)		40
	9.62		0.21			1			0.38	^(c)		0.43	^(c)		1.20	^(c)		40





	9.67		3.26			371,906			0.63			0.68			1.25			66
	9.66		2.49			1,393			1.38			1.43			0.75			66
	9.66		3.62			847,623			0.29			0.34			1.64			66
	9.69		3.35			2,814			0.54			0.59			1.45			66




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





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





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




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




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

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)


	2010 - A	$	15.18	$	0.13	$	0.59		$	0.72	$	(0.13	)	$	—		$	(0.13	)
	2010 - B		15.18		0.07		0.59			0.66		(0.07	)		—			(0.07	)
	2010 - C		15.18		0.07		0.60			0.67		(0.08	)		—			(0.08	)
	2010 - Institutional		15.16		0.16		0.59			0.75		(0.16	)		—			(0.16	)
	2010 - Service		15.15		0.12		0.58			0.70		(0.12	)		—			(0.12	)
	2010 - IR		15.18		0.15		0.58			0.73		(0.15	)		—			(0.15	)
	2010 - R		15.17		0.11		0.58			0.69		(0.11	)		—			(0.11	)

FOR THE FISCAL YEARS ENDED MARCH 31,


	2010 - A		15.14		0.42		0.25			0.67		(0.39	)		(0.24	)		(0.63	)
	2010 - B		15.14		0.31		0.24			0.55		(0.27	)		(0.24	)		(0.51	)
	2010 - C		15.14		0.30		0.25			0.55		(0.27	)		(0.24	)		(0.51	)
	2010 - Institutional		15.12		0.47		0.25			0.72		(0.44	)		(0.24	)		(0.68	)
	2010 - Service		15.11		0.39		0.25			0.64		(0.36	)		(0.24	)		(0.60	)
	2010 - IR		15.14		0.41		0.30			0.71		(0.43	)		(0.24	)		(0.67	)
	2010 - R		15.14		0.33		0.30			0.63		(0.36	)		(0.24	)		(0.60	)


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


*	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
Ended September 30,	For the Periods Ended
2010	2010			2009			2008			2007			2006
128%		280	%^(e)		373	%		119	%		117	%		690	%


	Prior years include the effect of mortgage dollar roll transactions, if any.
(d)	Annualized.
(e)	The amount previously reported has been adjusted to exclude certain “To Be Announced” activity where a mortgage security was delivered.
(f)	Amount is less than $0.005 per share.

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

GOLDMAN SACHS GOVERNMENT INCOME FUND


													Ratio of
					Net assets,		Ratio of			Ratio of			net investment
Net asset					end of		net expenses			total expenses			income			Portfolio
value, end		Total			period		to average			to average			to average			turnover
of period		return^(b)			(in 000s)		net assets			net assets			net assets			rate^(c)




$	15.77		4.78	%	$	504,754		0.92	%^(d)		0.99	%^(d)		1.70	%^(d)		197	%
	15.77		4.39			24,833		1.67	^(d)		1.74	^(d)		0.95	^(d)		197
	15.77		4.39			40,924		1.67	^(d)		1.74	^(d)		0.95	^(d)		197
	15.75		4.90			235,596		0.58	^(d)		0.65	^(d)		2.04	^(d)		197
	15.73		4.64			110,919		1.08	^(d)		1.15	^(d)		1.53	^(d)		197
	15.76		4.91			751		0.67	^(d)		0.74	^(d)		1.95	^(d)		197
	15.75		4.59			9,813		1.17	^(d)		1.24	^(d)		1.44	^(d)		197




	15.18		4.48			513,457		0.92			1.00			2.74			366	^(e)
	15.18		3.70			29,438		1.67			1.75			2.02			366	^(e)
	15.18		3.68			39,255		1.67			1.75			1.99			366	^(e)
	15.16		4.84			253,997		0.58			0.66			3.06			366	^(e)
	15.15		4.32			100,242		1.08			1.16			2.56			366	^(e)
	15.18		4.67			239		0.67			0.75			2.68			366	^(e)
	15.17		4.22			5,106		1.17			1.25			2.21			366	^(e)


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




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




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


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


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

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
				investment operations									to shareholders
		Net asset
		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)


	2010 - A	$	10.89	$	0.09	^(b)	$	0.65		$	0.74		$	(0.10	)	$	—		$	—		$	(0.10	)
	2010 - C		10.93		0.05	^(b)		0.64			0.69			(0.05	)		—			—			(0.05	)
	2010 - Institutional		10.93		0.11	^(b)		0.65			0.76			(0.12	)		—			—			(0.12	)
	2010 - IR		10.91		0.10	^(b)		0.65			0.75			(0.11	)		—			—			(0.11	)
	2010 - R		10.91		0.06	^(b)		0.66			0.72			(0.08	)		—			—			(0.08	)


FOR THE FISCAL YEARS ENDED MARCH 31,


	2010 - A		10.51		0.31	^(b)		0.29			0.60			(0.22	)		—			—			(0.22	)
	2010 - C		10.54		0.21	^(b)		0.32			0.53			(0.14	)		—			—			(0.14	)
	2010 - Institutional		10.54		0.33	^(b)		0.32			0.65			(0.26	)		—			—			(0.26	)
	2010 - IR		10.53		0.23	^(b)		0.40			0.63			(0.25	)		—			—			(0.25	)
	2010 - R		10.53		0.20	^(b)		0.37			0.57			(0.19	)		—			—			(0.19	)




	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


	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)	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.
(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


													Ratio of
					Net assets,		Ratio of			Ratio of			net investment
Net asset					end of		net expenses			total expenses			income (loss)			Portfolio
value, end		Total			period		to average			to average			to average			turnover
of period		return^(a)			(in 000s)		net assets			net assets			net assets			rate




$	11.53		6.78	%	$	78,871		0.67	%^(c)		0.81	%^(c)		1.62	%^(c)		88	%
	11.57		6.37			21,662		1.42	^(c)		1.56	^(c)		0.86	^(c)		88
	11.57		6.94			148,408		0.33	^(c)		0.47	^(c)		1.92	^(c)		88
	11.55	��	6.91			133		0.42	^(c)		0.56	^(c)		1.84	^(c)		88
	11.55		6.64			635		0.92	^(c)		1.06	^(c)		1.13	^(c)		88





	10.89		5.76			83,263		0.67			0.91			2.88			82
	10.93		5.05			21,962		1.42			1.66			1.91			82
	10.93		6.20			133,982		0.33			0.57			3.05			82
	10.91		6.01			125		0.42			0.66			2.15			82
	10.91		5.49			361		0.92			1.16			1.86			82




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





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


	2010 - A	$	10.37	$	0.03		$	0.09		$	0.12		$	(0.03	)	$	—		$	(0.03	)
	2010 - B		10.33		—	^(d)		0.09			0.09			—	^(d)		—			—	^(d)
	2010 - C		10.30		—	^(d)		0.09			0.09			—	^(d)		—			—	^(d)
	2010 - Institutional		10.33		0.05			0.09			0.14			(0.05	)		—			(0.05	)
	2010 - Service		10.32		0.02			0.09			0.11			(0.02	)		—			(0.02	)
	2010 - IR		10.37		0.05			0.08			0.13			(0.04	)		—			(0.04	)

FOR THE FISCAL YEARS ENDED MARCH 31,


	2010 - A		10.36		0.16			0.19			0.35			(0.17	)		(0.17	)		(0.34	)
	2010 - B		10.32		0.11			0.17			0.28			(0.10	)		(0.17	)		(0.27	)
	2010 - C		10.30		0.08			0.18			0.26			(0.09	)		(0.17	)		(0.26	)
	2010 - Institutional		10.33		0.19			0.18			0.37			(0.20	)		(0.17	)		(0.37	)
	2010 - Service		10.31		0.14			0.19			0.33			(0.15	)		(0.17	)		(0.32	)
	2010 - IR		10.36		0.16			0.21			0.37			(0.19	)		(0.17	)		(0.36	)


	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	)


*	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
Ended September 30,	For the Periods Ended
2010	2010			2009			2008			2007
58%		166	%^(f)		307	%		55	%		96	%


	Prior years include the effect of mortgage dollar roll transactions, if any.
(d)	Amount is less than $0.005 per share.
(e)	Annualized.
(f)	The amount previously reported has been adjusted to exclude certain “To Be Announced” activity where a mortgage security was delivered.

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

GOLDMAN SACHS SHORT DURATION GOVERNMENT FUND


													Ratio of
					Net assets,		Ratio of			Ratio of			net investment
Net asset					end of		net expenses			total expenses			income			Portfolio
value, end		Total			period		to average			to average			to average			turnover
of period		return^(b)			(in 000s)		net assets			net assets			net assets			rate^(c)




$	10.46		1.16	%	$	1,286,389		0.83	%^(e)		0.86	%^(e)		0.62	%^(e)		60	%
	10.42		0.89			1,936		1.38	^(e)		1.61	^(e)		0.08	^(e)		60
	10.39		0.88			165,107		1.39	^(e)		1.61	^(e)		0.05	^(e)		60
	10.42		1.33			1,845,855		0.49	^(e)		0.52	^(e)		0.96	^(e)		60
	10.41		1.08			161,561		0.99	^(e)		1.02	^(e)		0.46	^(e)		60
	10.46		1.29			7,351		0.58	^(e)		0.61	^(e)		0.87	^(e)		60




	10.37		3.38			1,503,139		0.84			0.88			1.53			175	^(f)
	10.33		2.78			3,797		1.44			1.63			1.05			175	^(f)
	10.30		2.53			179,424		1.59			1.63			0.80			175	^(f)
	10.33		3.64			1,921,023		0.50			0.54			1.84			175	^(f)
	10.32		3.23			190,628		1.00			1.04			1.31			175	^(f)
	10.37		3.64			3,366		0.59			0.63			1.54			175	^(f)


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




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




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


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


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

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)


	2010 - A	$	8.86	$	0.03	$	(0.06	)	$	(0.03	)	$	(0.02	)
	2010 - Institutional		8.86		0.04		(0.04	)		—			(0.04	)
	2010 - Service		8.90		0.02		(0.04	)		(0.02	)		(0.02	)
	2010 - IR		8.85		0.04		(0.05	)		(0.01	)		(0.03	)


FOR THE FISCAL YEARS ENDED MARCH 31,


	2010 - A		8.77		0.10		0.16			0.26			(0.17	)^(e)
	2010 - Institutional		8.77		0.13		0.16			0.29			(0.20	)^(e)
	2010 - Service		8.81		0.11		0.13			0.24			(0.15	)^(e)
	2010 - IR		8.76		0.10		0.18			0.28			(0.19	)^(e)




	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		—	^(g)		0.23			(0.29	)
	2005 - Service		9.37		0.19		(0.01	)		0.18			(0.24	)


*	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
Ended September 30,	For the Periods Ended
2010	2010			2008			2007
30%		111	%^(f)		10	%		78	%


	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)	Includes a return of capital amounting to less than $0.005 per share.


(f)	The amount previously reported has been adjusted to exclude certain “To Be Announced” activity where a mortgage security was delivered.


(g)	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


													Ratio of
					Net assets,		Ratio of			Ratio of			net investment
Net asset					end of		net expenses			total expenses			income			Portfolio
value, end		Total			period		to average			to average			to average			turnover
of period		return^(b)			(in 000s)		net assets			net assets			net assets			rate^(c)




$	8.81		(0.30	)%	$	200,060		0.83	%^(d)		0.84	%^(d)		0.65	%^(d)		30	%
	8.82		(0.01	)		352,252		0.49	^(d)		0.50	^(d)		0.99	^(d)		30
	8.86		(0.26	)		1,317		0.99	^(d)		1.00	^(d)		0.49	^(d)		30
	8.81		(0.06	)		280		0.58	^(d)		0.59	^(d)		0.91	^(d)		30





	8.86		2.96			303,400		0.83			0.87			1.14			111	^(f)
	8.86		3.31			487,133		0.49			0.53			1.45			111	^(f)
	8.90		2.78			2,702		0.99			1.03			1.29			111	^(f)
	8.85		3.22			451		0.58			0.62			1.19			111	^(f)




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





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





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




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




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

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, 2010 (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, 2010 through September 30, 2010.

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 ratios 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		Beginning					Expenses
	Beginning		Ending			Paid for the		Beginning		Ending			Paid for the		Beginning		Ending			Paid for the		Beginning		Ending			Paid for the		Account		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		Value		Account Value			6 months ended
Share Class	4/1/10		9/30/10			9/30/10*		4/1/10		9/30/10			9/30/10*		4/1/10		9/30/10			9/30/10*		4/1/10		9/30/10			9/30/10*		4/1/10		9/30/10			9/30/10*
Class A
Actual	$	1,000.00	$	1,001.30		$	3.16	$	1,000.00	$	1,047.80		$	4.72	$	1,000.00	$	1,067.80		$	3.47	$	1,000.00	$	1,011.60		$	4.19	$	1,000.00	$	997.00		$	4.16
Hypothetical 5% return		1,000.00		1,021.91	+		3.19		1,000.00		1,020.46	+		4.66		1,000.00		1,021.71	+		3.40		1,000.00		1,020.91	+		4.20		1,000.00		1,020.91	+		4.20

Class B
Actual		1,000.00		996.60			6.91		1,000.00		1,043.90			8.56		N/A		N/A			N/A		1,000.00		1,008.90			6.95		N/A		N/A			N/A
Hypothetical 5% return		1,000.00		1,018.15	+		6.98		1,000.00		1,016.70	+		8.44		N/A		N/A			N/A		1,000.00		1,018.15	+		6.98		N/A		N/A			N/A

Class C
Actual		N/A		N/A			N/A		1,000.00		1,043.90			8.56		1,000.00		1,063.70			7.35		1,000.00		1,008.80			7.00		N/A		N/A			N/A
Hypothetical 5% return		N/A		N/A			N/A		1,000.00		1,016.70	+		8.44		1,000.00		1,017.95	+		7.18		1,000.00		1,018.10	+		7.03		N/A		N/A			N/A

Institutional
Actual		1,000.00		1,003.00			1.46		1,000.00		1,049.00			2.98		1,000.00		1,069.40			1.71		1,000.00		1,013.30			2.47		1,000.00		999.90			2.46
Hypothetical 5% return		1,000.00		1,023.61	+		1.47		1,000.00		1,022.16	+		2.94		1,000.00		1,023.41	+		1.67		1,000.00		1,022.61	+		2.48		1,000.00		1,022.61	+		2.48

Administration
Actual		1,000.00		1,001.80			2.71		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		1,000.00		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		1,000.00		1,046.40			5.54		N/A		N/A			N/A		1,000.00		1,010.80			4.99		1,000.00		997.40			4.96
Hypothetical 5% return		N/A		N/A			N/A		1,000.00		1,019.65	+		5.47		N/A		N/A			N/A		1,000.00		1,020.10	+		5.01		1,000.00		1,020.10	+		5.01

Class IR^(a)
Actual		1,000.00		1,002.10			0.64		1,000.00		1,049.10			3.44		1,000.00		1,069.10			2.18		1,000.00		1,012.90			2.93		1,000.00		999.40			2.91
Hypothetical 5%		1,000.00		1,007.72	+		0.64		1,000.00		1,021.71	+		3.40		1,000.00		1,022.96	+		2.13		1,000.00		1,022.16	+		2.94		1,000.00		1,022.16	+		2.94

Class R
Actual		N/A		N/A			N/A		1,000.00		1,045.90			6.00		1,000.00		1,066.40			4.77		N/A		N/A			N/A		N/A		N/A			N/A
Hypothetical 5% return		N/A		N/A			N/A		1,000.00		1,019.20	+		5.92		1,000.00		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, 2010. 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^(a)			Class R

Enhanced Income		0.63	%		1.38	%		N/A			0.29	%		0.54	%		N/A			0.38	%		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		0.83			1.38			1.39			0.49			N/A			0.99			0.58			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.


(a)	Commenced operations on July 30, 2010 for Enhanced Income Fund.

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 Government Income, Goldman Sachs Inflation Protected Securities, Goldman Sachs Short Duration Government and Goldman Sachs Ultra-Short Duration Government 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 the continuance of 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, 2011 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 16-17, 2010 (the “Annual Meeting”).

The review process undertaken by the Trustees spans the course of the year and culminates with the Annual Meeting. To assist the Trustees in their deliberations, the Trustees have established a Contract Review Committee (the “Committee”), comprised of the Independent Trustees. The Committee held three meetings over the course of the year, since last approving the Management Agreements. At those Committee meetings, regularly scheduled Board meetings and/or the Annual Meeting, the Board, or the Independent Trustees, as applicable, 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, including information about:


	(i)	the structure, staff and capabilities of the Investment Adviser and its portfolio management teams;
	(ii)	the groups within the Investment Adviser and its affiliates that support the portfolio management teams or provide other types of necessary services, including fund services groups (e.g., accounting and financial reporting, tax, shareholder services and operations), controls and risk management groups (e.g., legal, compliance, valuation oversight, credit risk management, internal audit, market risk analysis and finance and strategy), sales and distribution support groups and others (e.g., information technology and training);
	(iii)	trends in headcount;
	(iv)	the Investment Adviser’s financial resources and ability to hire and retain talented personnel and strengthen its operations; and
	(v)	the parent company’s support of the Investment Adviser and its mutual fund business, as expressed by the firm’s senior management;


	(b)	information on the investment performance of the Funds, including comparisons to the performance of similar mutual funds, as provided by a third party mutual fund data provider engaged as part of the contract review process (the “Outside Data Provider”), and benchmark performance indices, and general investment outlooks in the markets in which the Funds invest;
	(c)	the terms of the Management Agreements and agreements with affiliated service providers entered into by the Trust on behalf of the Funds;
	(d)	expense information for the Funds, including:


	(i)	the relative management fee and expense levels of the Funds as compared to those of comparable funds managed by other advisers, as provided by the Outside Data Provider;
	(ii)	each Fund’s expense trends over time; and
	(iii)	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;


	(e)	with respect to the extensive investment performance and expense comparison data provided by the Outside Data Provider, its processes in producing that data for the Funds;
	(f)	the undertakings of the Investment Adviser to waive certain fees (with respect to the Enhanced Income and Inflation Protected Securities Funds) and reimburse certain expenses of the Funds that exceed specified levels; the undertaking of Goldman, Sachs & Co. (“Goldman Sachs”), the Funds’ affiliated distributor, to waive a portion of the distribution and service fees paid by the Short Duration Government Fund’s Class B Shares; and a summary of contractual fee reductions made by the Investment Adviser and its affiliates over the past several years with respect to the Funds;
	(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)	potential economies of scale, if any, and the levels of breakpoints in the fees payable by the Funds under the Management Agreements;
	(i)	a summary of the “fall-out” benefits derived by the Investment Adviser and its affiliates from their relationships with the Funds, including the fees received by the Investment Adviser’s affiliates from the Funds for transfer agency, distribution and other services;

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

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


	(j)	a summary of potential benefits derived by the Funds as a result of their relationship with the Investment Adviser;
	(k)	portfolio trading related issues;
	(l)	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; and the number and types of accounts managed by the portfolio managers;
	(m)	the nature and quality of the services provided to the Funds by their unaffiliated service providers, and the Investment Adviser’s general oversight and evaluation (including reports on due diligence) of those service providers as part of the administration services provided under the Management Agreements; and
	(n)	the Investment Adviser’s processes and policies addressing various types of potential conflicts of interest; its approach to risk management; the annual review of the effectiveness of the Funds’ compliance program; and compliance reports.

The Trustees also received an overview of the Funds�� distribution arrangements. They received 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. 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.

The presentations made at the Board and Committee meetings and at the Annual Meeting encompassed the Funds and other mutual fund portfolios for which the Board of Trustees has responsibility. In evaluating the Management Agreements at the Annual 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. 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 and other regulatory requirements related to the approval and continuation of mutual fund investment management agreements under applicable law. 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 Independent 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 Independent Trustees concluded that the Investment Adviser had committed substantial financial and operational resources to the Funds and expressed confidence that the Investment Adviser would continue to do so in the future. The Trustees also observed that the Investment Adviser had made significant commitments to address regulatory compliance requirements applicable to the Funds and the Investment Adviser.

Investment Performance

The 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. This information on each Fund’s investment performance relative to that of its peers was provided for the one-, three-, five- and ten-year periods ended December 31, 2009, to the extent that each Fund had been in existence for those periods. The Trustees also reviewed each Fund’s investment performance over time on a year-by-year basis relative to its performance benchmark. 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 and credit and duration parameters. The Trustees considered whether each Fund had operated within its investment policies and had complied with its investment limitations.

In addition, the Trustees considered materials prepared and presentations made by the Investment Adviser’s Chief Investment Officer and portfolio management personnel, in which Fund performance was assessed. The Trustees also considered the Investment Adviser’s periodic reports with respect to the Funds’ risk profiles, and how the Investment Adviser’s approach to risk monitoring and management influences portfolio management.

The Trustees believed that most of the Funds were providing investment performance within a competitive range for long-term investors and noted that each of the Funds, with the exception of Inflation Protected Securities Fund, outperformed its respective benchmark for the one-year period ended December 31, 2009. They also noted that Government Income, Inflation Protected Securities and Short Duration Government Funds ranked in the top half of their respective peer groups for the one-year period ended December 31, 2009. The Trustees recognized that the recent performance of the Funds was generally strong. The Trustees concluded that the Investment Adviser’s continued management likely would benefit each Fund and its shareholders.

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

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

Costs of Services Provided and Competitive Information

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

In particular, the Trustees reviewed analyses prepared by the Outside Data Provider regarding the expense rankings of the Funds. The analyses provided a comparison of the Funds’ management fees and breakpoints to 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 (two-year, in the case of Inflation Protected Securities Fund) history 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 the peer group median. The Trustees concluded 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 Trustees considered the Investment Adviser’s undertakings to limit the Funds’ “other expenses” ratios (excluding certain expenses) to certain specified levels and to waive a portion of the contractual management fees paid by the Enhanced Income and Inflation Protected Securities Funds, as well as Goldman Sachs’ undertaking to waive a portion of the distribution and service fees paid by 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 generally operated under less stringent legal and regulatory structures, required fewer services from the Investment Adviser to a smaller number of client contact points, were less time-intensive and paid lower fees. By contrast, the Trustees noted that the Investment Adviser provides substantial administrative services to the Funds under the terms of the Management Agreements.

In addition, the Trustees noted that shareholders are able to redeem their Fund shares at any time 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 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 Trustees noted that they had received, 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. They observed that the profitability and expense figures are substantially similar to those used by the Investment Adviser for many internal purposes, including compensation decisions among various business groups, and are thus subject to a vigorous internal debate about how certain revenue and expenses should be allocated. 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 2009 and 2008, and the Trustees considered this information in relation to the Investment Adviser’s overall profitability. The Trustees considered the Investment Adviser’s revenues and pre-tax profit margins both in absolute terms and in comparison to information on the reported pre-tax profit margins earned by certain other asset management firms.

Economies of Scale

The Trustees considered the information that had been provided regarding the Investment Adviser’s profitability and the rationale for the Funds’ breakpoint structure. The 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

GOLDMAN SACHS SHORT DURATION AND GOVERNMENT FIXED INCOME FUNDS

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

shareholders as assets under management reach those asset levels. The 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 Investment Adviser’s undertakings to limit management fees (with respect to the Enhanced Income and Inflation Protected Securities Funds) and other expenses (with respect to all of the Funds) to certain amounts. Upon reviewing these matters at the Annual Meeting, the Trustees concluded that the fee breakpoints represented a means of assuring that benefits of scalability would be passed along to shareholders at the specified asset levels. They also noted that the Investment Adviser was passing along savings to shareholders of the Short Duration Government Fund, which had asset levels above the first breakpoint.

Other Benefits to the Investment Adviser and Its Affiliates

The 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. In the course of considering the foregoing, the Independent Trustees requested and received further information quantifying certain of the fall-out benefits.

Other Benefits to the Funds and Their Shareholders

The 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 favorable terms with derivatives counterparties as a result of the size and reputation of the Goldman Sachs organization; (e) the advantages gained from the Investment 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. The Trustees noted the competitive nature of the mutual fund marketplace, and noted further that many of the Funds’ shareholders invested in the Funds in part because of the Funds’ relationship with the Investment Adviser and that those shareholders have a general expectation that the relationship will continue.

Conclusion

In connection with their consideration of the Management Agreements, the 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 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. The Trustees concluded that the Management Agreements should be approved and continued with respect to each applicable Fund until June 30, 2011.

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 $700.8 billion in assets under management as of September 30, 2010 — 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.¹

OVERVIEW OF GOLDMAN SACHS FUNDS


Money Market²Financial Square Funds^SMn Financial Square Tax-Exempt Funds n Financial Square Federal Fund n Financial Square Government Fund n Financial Square Money Market Fund n Financial Square Prime Obligations Fund n Financial Square Treasury Instruments Fund n Financial Square Treasury Obligations Fund Fixed Income Short Duration and Government n Enhanced Income Fund n Ultra-Short Duration Govt. Fund n Short Duration Government Fund n Government Income Fund n Inflation Protected Securities Fund Multi-Sector n Core Fixed Income Fund n Core Plus Fixed Income Fund n Global Income Fund n Strategic Income Fund Municipal and Tax-Free n High Yield Municipal Fund n Municipal Income Fund n Short Duration Tax-Free Fund Single Sector n Investment Grade Credit Fund n U.S. Mortgages Fund n High Yield Fund		n Emerging Markets Debt Fund n Local Emerging Markets Debt Fund Corporate Credit n Credit Strategies Fund Fundamental Equity n Growth and Income Fund n Small Cap Value Fund n Mid Cap Value Fund n Large Cap Value Fund n Capital Growth Fund n Strategic Growth Fund n Small/Mid Cap Growth Fund n All Cap Growth Fund n Concentrated Growth Fund n Technology Tollkeeper Fund^{SM 4} n Growth Opportunities Fund n U.S. Equity Fund Structured Equity n Balanced Fund n Structured Small Cap Equity Fund n Structured U.S. Equity Fund n Structured Small Cap Growth Fund n Structured Large Cap Growth Fund n Structured Large Cap Value Fund n Structured Small Cap Value 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 n Structured International Small Cap Fund n Structured International Equity Fund n Structured Emerging Markets Equity Fund Fundamental Equity International n Strategic International Equity Fund n Concentrated International Equity Fund n International Small Cap Fund n Asia Equity Fund n Emerging Markets Equity Fund n BRIC Fund (Brazil, Russia, India, China) Select Satellite³n Real Estate Securities Fund n International Real Estate Securities Fund n Commodity Strategy Fund n Dynamic Allocation Fund n Absolute Return Tracker Fund Total Portfolio Solutions³n Balanced Strategy Portfolio n Growth and Income Strategy Portfolio n Growth Strategy Portfolio n Equity Growth Strategy Portfolio n Income Strategies Portfolio n Satellite Strategies Portfolio n Retirement Strategies Portfolios n Enhanced Dividend Global Equity Portfolio n Tax Advantaged Global Equity Portfolio

Firmwide assets under management includes assets managed by GSAM and its Investment Advisory Affiliates.


¹	Ranking for Goldman Sachs Group, Inc., includes Goldman Sachs Asset Management, Private Wealth Management and Merchant Banking 2009 year-end assets. Ranked 9th in total assets worldwide. Pensions&Investments, June 2010.

²	An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) 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.

³	Individual Funds within the Total Portfolio Solutions 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 Total Portfolio Solutions or Select Satellite category.

⁴	Effective July 31, 2010, the Goldman Sachs Tollkeeper Fund was renamed the Goldman Sachs Technology Tollkeeper Fund.

The Goldman Sachs Technology Tollkeeper Fund^SM and Financial Square Funds^SM are registered service marks of Goldman, Sachs & Co.


TRUSTEES Ashok N. Bakhru, Chairman Donald C. Burke** John P. Coblentz, Jr. Diana M. Daniels Patrick T. Harker*		OFFICERS James A. McNamara, President George F. Travers, Principal Financial Officer Peter V. Bonanno, Secretary Scott M. McHugh, Treasurer
Joseph P. LoRusso** James A. McNamara Jessica Palmer Alan A. Shuch Richard P. Strubel Resigned effective September 30, 2010 *Effective August 19, 2010


GOLDMAN, SACHS & CO. Distributor and Transfer Agent		GOLDMAN SACHS ASSET MANAGEMENT, L.P. Investment Adviser

Visit our Website at www.goldmansachsfunds.com to obtain the most recent month-end returns.

Goldman Sachs Asset Management, L.P. 200 West Street, New York, New York 10282

The reports concerning the Funds included in this shareholder report may contain certain forward-looking statements about the factors that may affect the performance of the Funds in the future. These statements are based on fund management’s predictions and expectations concerning certain future events and their expected impact on the Funds, such as performance of the economy as a whole and of specific industry sectors, changes in the levels of interest rates, the impact of developing world events, and other factors that may influence the future performance of the Funds. Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in portfolio management strategies from those currently expected to be employed.

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how a Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (I) without charge, upon request by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders); and (II) on the Securities and Exchange Commission (”SEC”) Web site at http://www.sec.gov.

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The 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.

This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus or summary prospectus, if applicable. Investors should consider a Fund’s objective, risks, and charges and expenses, and read the summary prospectus, if available, and/or the Prospectus carefully before investing or sending money. The summary prospectus, if available, and the Prospectus contain this and other information about a Fund and may be obtained from your authorized dealer or from Goldman, Sachs & Co. by calling (retail — 1-800-526-7384) (institutional — 1-800-621-2550).


ITEM 2.		CODE OF ETHICS.

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


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.

		Not applicable.


ITEM 6.		INVESTMENTS.

	(a)	Schedules of Investments are included as part of the Semi-Annual Report to Stockholders filed under Item 1 of this Form N-CSR.

	(b)	Not applicable.


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

(a)(2)	Exhibit 99.CERT	Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are filed herewith.

(a)(3)		Not applicable.

(b)	Exhibit 99.906CERT	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are filed herewith.

SIGNATURES

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


				Goldman Sachs Trust

By:				/s/ James A. McNamara

				James A. McNamara
				Principal Executive Officer
				Goldman Sachs Trust

Date:				December 1, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.


By:				/s/ James A. McNamara

				James A. McNamara
				Principal Executive Officer
				Goldman Sachs Trust

Date:				December 1, 2010

By:				/s/ George F. Travers

				George F. Travers
				Principal Financial Officer
				Goldman Sachs Trust

Date:				December 1, 2010

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