<PAGE>
Goldman
Sachs Variable Insurance Trust
GOLDMAN SACHS ASSET MANAGEMENT 32 OLD SLIP, 17TH FLOOR, NEW YORK, NEW YORK
10005
Semiannual Report
June 30, 1999
[LOGO OF GOLDMAN SACHS APPEARS
HERE]
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND
Shareholder Letter
Dear Shareholders,
The following is a report on the performance of the Goldman Sachs Variable
Insurance Trust Growth and Income Fund. This semiannual report covers the
six-month period ended June 30, 1999.
Performance Review
For the six-month period ended June 30, 1999 the Fund gen-
erated a 10.43% cumulative total return. Over the same time
period, the Fund's benchmark, the Standard & Poor's 500 In-
dex (with dividends reinvested) (S&P 500 Index), generated
a cumulative total return of 12.38%.
The last six months have been a study in contrasts in the
U.S. equity market and for the Fund. During the first quar-
ter of 1999 the stock market rose, but the rally was ex-
tremely narrow--limited mostly to a few very large growth
companies and the technology sector. In contrast, the
Fund's strategy is to invest primarily in companies whose
share prices appear discounted relative to long-term value,
due to near-term uncertainty or pessimism in the market-
place. As a result of this value bias, the Fund
underperformed the S&P 500 Index during the quarter.
However, in April we saw a reversal of fortune, as invest-
ors abruptly shifted gears and took renewed interest in ec-
onomically sensitive and generally less expensive stocks.
This dramatic change continued throughout the second quar-
ter, and during that period the Fund outperformed its
benchmark.
The Fund's performance was enhanced by successful stock se-
lection. For example, our energy holdings significantly
outperformed the market and other stocks in the industry.
We built up a significant position in the energy sector
early in the year, due to our view that oil stocks re-
flected unsustainable low oil prices. As oil prices began
to rise in March, several of the Fund's oil-related stocks
contributed solid gains to the portfolio. Successful stock
selection in forest products, motor vehicles and drugs also
fueled performance in the first six months of the year. We
took advantage of strong performance to take profits from
Georgia Pacific Corp., which benefited from a rebound in
pricing outlook and forecasts of substantially higher earn-
ings in the near term. Among autos, our holding in
LucasVarity was acquired, thus boosting the stock past our
target price. As a result, we liquidated the position and
generated profits for the Fund. Finally, we benefited from
pharmaceutical holdings such as Bristol Myers Squibb, Eli
Lilly and Warner Lambert. Although we were underweight in
this group based on valuation, our holdings--among the
least expensive of the industry at the time of purchase--
substantially outperformed the market and contributed posi-
tively to performance.
Investment Objective
The Fund seeks long-term capital growth and growth of in-
come primarily through investments in equity securities of
companies selling at a discount to their long-term earning
and/or dividend-paying ability.
1
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND
Shareholder Letter (continued)
Portfolio Composition
Top 10 Portfolio Holdings as of June 30, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Line of Business Net Assets
------- ---------------- -------------
<S> <C> <C>
BankAmerica Corp. Banks 2.3%
Philip Morris Co, Inc. Tobacco 2.3
First Union Corp. Banks 2.2
Bank One Corp. Banks 2.1
General Motors Corp. Auto/Vehicle 2.1
Royal Dutch Petroleum Co. ADR Integrated Oil 2.0
Browning-Ferris Industries,
Inc. Construction/Environmental Services 2.0
AT&T Corp. Telecommunications 2.0
Federated Department Stores,
Inc. Department Stores 2.0
GTE Corp. Local Exchange Companies 1.9
</TABLE>
* Opinions expressed in this report represent our present
opinions only. References to individual securities should
not be construed as commitments that such securities will
be retained in the Fund. From time to time, the Fund may
change the individual securities it holds, the number or
types of securities held and the markets in which it in-
vests. References to individual securities do not consti-
tute recommendations to the investor to buy, hold or sell
such securities. In addition, references to past perfor-
mance of the Fund do not indicate future returns, which are
not guaranteed and will vary. Furthermore, the value of
shares of the Fund may fall as well as rise.
Outlook
We continue to improve the Fund's level of diversification
and liquidity in order to provide returns more consistent
with its peer group and the S&P 500 Index. Within this risk
management framework, we maintain a value orientation and
hope to continue to add value through stock selection and
fundamental research. We believe that our holdings, which
collectively sell at a discount to the S&P 500 Index, offer
both a margin of downside protection and significant upside
return potential over the business cycle.
We thank you for your investment and look forward to your
continued confidence.
Goldman Sachs Value Portfolio Management Team
July 29, 1999
2
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND
Statement of Investments
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
Common Stocks - 80.5%
Aerospace/Defense - 3.0%
1,900 Boeing Co. $ 83,956
3,500 General Motors Corp. Class H 196,875
3,200 Northrop Grumman Corp. 212,200
2,200 Raytheon Co.* 151,525
----------
644,556
-------------------------------------------------------------
Auto Suppliers - 3.5%
400 Dana Corp. 18,425
11,014 Delphi Automative Systems* 204,447
6,500 Federal-Mogul Corp. 338,000
3,500 TRW, Inc. 192,063
----------
752,935
-------------------------------------------------------------
Auto/Vehicle - 2.4%
6,800 General Motors Corp. 448,800
2,200 Volvo Aktiebolaset ADR B 64,625
----------
513,425
-------------------------------------------------------------
Banks - 8.4%
6,800 BankAmerica Corp. 498,525
7,700 Bank One Corp. 458,631
10,300 First Union Corp. 484,100
2,900 Key Corp. 93,163
1,700 National City Corp. 111,350
4,300 Wells Fargo Co. 183,825
----------
1,829,594
-------------------------------------------------------------
Chemicals-Specialty - 0.4%
1,100 Minnesota Mining and Manufacturing Co. 95,631
-------------------------------------------------------------
Construction/Environmental Services - 3.0%
10,200 Browning-Ferris Industries, Inc. 438,600
3,900 Waste Management, Inc. 209,625
----------
648,225
-------------------------------------------------------------
Department Stores - 2.7%
8,000 Federated Department Stores, Inc.* 423,500
1,800 May Department Stores Co. 73,575
1,800 Sears Roebuck & Co. 80,213
----------
577,288
-------------------------------------------------------------
Energy Refining & Marketing - 1.0%
4,500 Tosco Corp. 116,719
3,300 USX-Marathon Group, Inc. 107,456
----------
224,175
-------------------------------------------------------------
Enterprise Systems - 1.6%
2,100 Hewlett-Packard Co. 211,050
1,400 NCR Corp.* 68,338
1,200 Xerox Corp. 70,875
----------
350,263
-------------------------------------------------------------
Food & Beverages - 5.7%
20,600 Archer Daniels Midland Co. 318,012
14,300 Conagra, Inc. 380,737
1,000 H.J. Heinz Co. 50,125
8,700 Nabisco Group Holdings* 170,194
-------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
Common Stocks - (continued)
Food & Beverages - (continued)
13,500 Sara Lee Corp. $ 306,281
157 Unilever N V 10,951
----------
1,236,300
--------------------------------------------------------------
Forest Products - 0.6%
2,500 International Paper Co. 126,250
--------------------------------------------------------------
Healthcare Management - 4.5%
3,500 Aetna, Inc. 313,031
1,800 Cigna Corp. 160,200
5,800 Columbia/ HCA Healthcare Corp. 132,312
19,400 Tenet Healthcare Corp.* 360,113
----------
965,656
--------------------------------------------------------------
Health Suppliers/Services - 2.3%
4,700 Baxter International, Inc. 284,937
14,600 Healthsouth Corp.* 218,088
----------
503,025
--------------------------------------------------------------
Hotels & Restaurants - 1.0%
7,200 Starwood Hotels & Resorts Worldwide 220,050
--------------------------------------------------------------
Insurance Brokers & Other Insurance - 0.3%
1,500 Provident Companies, Inc. 60,000
--------------------------------------------------------------
Insurance-Property and Casualty - 4.8%
8,300 Allstate Corp. 297,762
3,500 Hartford Financial Services Group, Inc. 204,094
4,600 Loews Corp. 363,975
3100 XL Capital, Ltd. 175,150
----------
1,040,981
--------------------------------------------------------------
Integrated Oil - 4.4%
1,500 Atlantic Richfield Co. 125,344
2,100 Exxon Corp. 161,963
7,900 Occidental Petroleum Corp. 166,888
7,300 Royal Dutch Petroleum Co. ADR 439,825
700 Texaco, Inc. 43,750
----------
937,770
--------------------------------------------------------------
Local Exchange Companies - 5.4%
4,700 Ameritech Corp. 345,450
5,100 Bell Atlantic Corp. 333,412
2,000 BellSouth Corp. 93,750
5,300 GTE Corp. 401,475
----------
1,174,087
--------------------------------------------------------------
Logistics/Rail - 0.6%
4,000 Burlington Northern Santa Fe Corp. 124,000
--------------------------------------------------------------
Media & Communications - 5.8%
3,400 CBS, Inc. 147,687
3,900 Dun & Bradstreet Corp. 138,206
2,800 MediaOne Group, Inc.* 208,250
4,800 New York Times Co. 176,700
2,500 RR Donnelley & Sons Co. 92,656
--------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND
Statement of Investments (continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
Common Stocks - (continued)
Media & Communications - (continued)
6,300 SBC Communications, Inc. $ 365,400
2,200 U.S. West, Inc. 129,250
-----------
1,258,149
-------------------------------------------------------------
Personal Computers and Peripherals - 0.5%
4,900 Compaq Computer Corp. 116,068
-------------------------------------------------------------
Pharmaceuticals - 3.8%
3,100 American Home Products Corp. 178,250
700 Eli Lilly & Co. 50,138
3,700 Merck & Co. 273,800
5,800 Pharmacia & Upjohn, Inc. 329,513
-----------
831,701
-------------------------------------------------------------
Semiconductors - 1.0%
3,800 Intel Corp. 226,100
-------------------------------------------------------------
Specialty Finance & Agencies - 0.6%
1,800 Federal National Mortgage Association 123,075
-------------------------------------------------------------
Specialty Retail - 2.6%
2,400 Autozone, Inc.* 72,300
7,300 TJX Companies, Inc. 243,181
11,600 Toys R US, Inc.* 239,975
-----------
555,456
-------------------------------------------------------------
Telecommunications - 2.0%
7,827 AT&T Corp. 436,844
-------------------------------------------------------------
Tobacco - 2.8%
12,300 Philip Morris Companies, Inc. 494,306
3,600 RJ Reynolds Tobacco Holdings* 113,400
-----------
607,706
-------------------------------------------------------------
Utilities - 5.8%
10,000 Entergy Corp. 312,500
3,400 FPL Group, Inc. 185,725
4,200 P G & E Corporation 136,500
17,700 Pacificorp 325,238
7,800 Unicom Corp. 300,788
-----------
1,260,751
-------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $16,496,979) $17,440,061
-------------------------------------------------------------
U.S. Treasury Obligation - 0.7%
U.S. Treasury Bill(a)
$150,000 4.90%(b) 12/09/99 $ 146,807
-------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATION
(Cost $146,790) $ 146,807
-------------------------------------------------------------
Repurchase Agreement - 18.0%
Joint Repurchase Agreement Account II(c)
$3,900,000 5.13% 07/01/99 $ 3,900,000
-------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $3,900,000) $ 3,900,000
-------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $20,543,769)(d) $21,486,868
-------------------------------------------------------------
Federal Income Tax Information:
Gross unrealized gain for
investments in which value
exceeds cost $ 1,453,175
Gross unrealized loss for
investments in which cost
exceeds value (561,258)
-------------------------------------------------------------
Net unrealized gain $ 891,917
-------------------------------------------------------------
Futures contracts open at June 30, 1999 are as follows:
Number of
Contracts Settlement Unrealized
Type Long(e) Month Gain
-------------------------------------------------------------
S & P 500 Index 6 September 1999 $95,393
-------------------------------------------------------------
</TABLE>
* Non-income producing security.
(a) The security is being segregated as collateral for futures margin
requirements.
(b) The interest rate disclosed for the security represents effective yield
to maturity.
(c) The repurchase agreement is fully collateralized by Federal Obligations.
(d) The aggregate cost for federal income tax purposes is $20,594,951.
(e) Each S&P 500 Stock Index represents $250,000 in notional par value. The
total net notional amount and net market value are $1,977,157 and
$2,072,550, respectively. The determination of notional amounts as
presented here are indicative only of volume of activity and not a
measure of market risk.
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of total net assets.
------------------------------------------------------------------------------
Investment Abbreviation:
ADR--American Depository Receipt
------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORESM U.S. EQUITY FUND
Shareholder Letter
Dear Shareholders,
We are pleased to report on the performance of the Goldman Sachs Variable In-
surance Trust CORE U.S. Equity Fund. This semiannual report covers the six-
month period ended June 30, 1999.
Performance Review
For the six-month period ended June 30, 1999 the Fund gen-
erated a 13.75% cumulative total return, outperforming the
12.38% cumulative total return of its benchmark, the Stan-
dard & Poor's 500 Index (with dividends reinvested).
The CORE strategy is a well-defined investment process that
has historically provided consistent, risk-managed perfor-
mance, with a reduced risk that returns will be very dif-
ferent from those of a specific benchmark over time.
Additionally, the diversification of our models typically
adds value, because when one theme doesn't work, others
usually do. For example, when momentum stocks underperform,
value stocks typically advance more than average.
The Fund's investment process and diversification of themes
were key benefits during the reporting period, as we expe-
rienced dramatic shifts in investor sentiment. During the
first quarter of the year the stock market's rally was ex-
tremely narrow, limited mostly to a few very large growth
companies and the technology sector. Early in the second
quarter, investors rotated assets into value-oriented,
smaller-cap and cyclical issues, but were back to prefer-
ring large-cap growth by the time the quarter ended. In the
first quarter, the momentum theme of our quantitative proc-
ess helped us to select winning stocks, although as the
market's preferences shifted, momentum had a difficult time
maintaining these results. Overall, during the first six
months of the year the Fund was able to outperform its
benchmark by 137 basis points.
Investment Objective
The Fund seeks long-term capital growth and dividend income
through a broadly diversified portfolio of large-cap and
blue chip equity securities representing all major sectors
of the U.S. economy.
The portfolio employs a disciplined approach that combines
fundamental investment research provided by Goldman, Sachs
& Co.'s Global Investment Research Department and consensus
opinions, with quantitative analysis generated by the Asset
Management Division's proprietary model. This quantitative
system evaluates each stock using many different criteria,
including valuation measures, growth expectations, earnings
momentum and risk profile. It also objectively analyzes the
impact of current economic conditions on different types of
stocks to determine where the emphasis should be placed.
While maintaining a profile close to that of the benchmark,
those stocks ranked highly by both the quantitative model
and the Goldman Sachs Global Investment Research Department
are selected for the portfolio.
5
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORESM U.S. EQUITY FUND
Shareholder Letter (continued)
Portfolio Composition
Top 10 Portfolio Holdings as of June 30, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Line of Business Net Assets
------- ---------------- -------------
<S> <C> <C>
Microsoft Corp. Computer Services/ Software 4.9%
International Business
Machines Inc. Enterprise Systems 3.5
Exxon Corp. Integrated Oil 3.2
General Electric Co. Electronics & Other Electrical Equipment 3.2
Eastman Kodak Co. Consumer Products 2.4
BankAmerica Corp. Banks 2.1
AT&T Corp. Telecommunications 2.0
Bristol-Myers Squibb Co. Pharmaceuticals 1.9
Royal Dutch Petroleum Co. ADR Integrated Oil 1.9
Cisco Systems, Inc. Telecommunications Equipment 1.8
</TABLE>
* Opinions expressed in this report represent our present
opinions only. References to individual securities should
not be construed as commitments that such securities will
be retained in the Fund. From time to time, the Fund may
change the individual securities it holds, the number or
types of securities held and the markets in which it in-
vests. References to individual securities do not consti-
tute recommendations to the investor to buy, hold or sell
such securities. In addition, references to past perfor-
mance of the Fund do not indicate future returns, which are
not guaranteed and will vary. Furthermore, the value of
shares of the Fund may fall as well as rise.
Outlook
Despite a period of shifting investor preference and above
average return dispersion (the difference between the best-
and worst-performing stocks), the Fund's investment process
outperformed its benchmark for the reporting period. Going
forward, we continue to believe that cheaper stocks should
outpace more expensive ones, good momentum stocks should do
better than poor momentum stocks, lower-risk stocks should
perform better than higher risk stocks, as should those fa-
vored by research analysts. As such, we anticipate remain-
ing fully invested and believe that the value we add over
time will be due to stock selection, as opposed to sector
or size allocations.
We thank you for your investment and look forward to your
continued confidence.
Goldman Sachs Quantitative Equity Management Team
July 29, 1999
6
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORESM U.S. EQUITY FUND
Statement of Investments
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - 96.0%
Advertising - 0.2%
500 Omnicom Group, Inc. $ 40,000
--------------------------------------------------------------
Aerospace/Defense - 1.3%
2,800 General Motors Corp. Class H 157,500
1,200 United Technologies Corp. 86,025
----------
243,525
--------------------------------------------------------------
Agriculture/Heavy Equipment - 0.5%
1,400 Caterpillar, Inc. 84,000
--------------------------------------------------------------
Airfreight, Truck & Other - 0.1%
300 FDX Corp.* 16,275
--------------------------------------------------------------
Airlines - 0.4%
300 AMR Corp.* 20,475
800 Delta Air Lines, Inc. 46,100
----------
66,575
--------------------------------------------------------------
Auto/ Vehicle - 1.8%
2,200 Ford Motor Co. 124,162
1,000 Hertz Corp. 62,000
2,800 Navistar International Corp.* 140,000
----------
326,162
--------------------------------------------------------------
Banks - 6.1%
5,231 BankAmerica Corp. 383,498
600 Bank of New York, Inc. 22,012
324 Bank One Corp. 19,298
300 Capital One Financial Corp. 16,706
1,400 Chase Manhattan Corp. 121,275
6,700 Citigroup, Inc. 318,250
500 Fifth Third Bancorp 33,281
3,900 Firstar Corp. 109,200
300 Suntrust Banks, Inc. 20,831
600 U.S. Bancorp 20,400
1,000 Wells Fargo Co. 42,750
----------
1,107,501
--------------------------------------------------------------
Basic Industries - 0.2%
2,000 Barrick Gold Corp. 38,750
--------------------------------------------------------------
Chemicals-Commodity - 2.3%
2,300 Avery Dennison Corp. 138,862
1,600 Dow Chemicals Co. 203,000
400 Du Pont (E.I.) de Nemours & Co. 27,325
600 PPG Industries, Inc. 35,438
800 Solutia, Inc. 17,050
----------
421,675
--------------------------------------------------------------
Commercial Products - 1.8%
500 Allied Signal, Inc. 31,500
3,125 Tyco International, Ltd. 296,094
----------
327,594
--------------------------------------------------------------
Shares Description Value
Common Stocks - (continued)
Computer Services/Software - 6.3%
600 Automatic Data Processing, Inc. $ 26,400
700 Computer Sciences Corp.* 48,431
400 Compuware Corp.* 12,725
1,400 First Data Corp. 68,512
9,800 Microsoft Corp.* 883,838
2,100 Novell, Inc.* 55,650
950 Oracle Corp.* 35,269
500 Rational Software Corp.* 16,469
----------
1,147,294
--------------------------------------------------------------
Consumer Products - 2.4%
6,300 Eastman Kodak Co. 426,825
--------------------------------------------------------------
Consumer Staples - 2.1%
800 Clorox Co. 85,450
400 Kimberly Clark Corp. 22,800
3,000 Procter & Gamble Co. 267,750
----------
376,000
--------------------------------------------------------------
Department Stores - 0.8%
1,600 Dayton Hudson Corp. 104,000
800 Federated Department Stores, Inc.* 42,350
----------
146,350
--------------------------------------------------------------
Electronics & Other Electrical Equipment - 4.3%
1,000 Applied Materials, Inc.* 73,875
800 Corning, Inc. 56,100
5,100 General Electric Co. 576,300
400 Johnson Controls, Inc. 27,725
1,400 The Southern Company 37,100
----------
771,100
--------------------------------------------------------------
Enterprise Systems - 6.0%
1,200 EMC Corp.* 66,000
1,900 Hewlett-Packard Co. 190,950
4,900 International Business Machines, Inc. 633,325
1,100 Sun Microsystems, Inc.* 75,763
800 Unisys Corp.* 31,150
1,600 Xerox Corp. 94,500
----------
1,091,688
--------------------------------------------------------------
Entertainment & Leisure - 0.8%
2,600 Carnival Cruise Lines Corp. 126,100
500 Royal Caribbean Cruise Lines 21,875
----------
147,975
--------------------------------------------------------------
Financial Services - 0.3%
400 American Express Co. 52,050
--------------------------------------------------------------
Food & Beverages - 3.0%
1,190 Archer Daniels Midland Co. 18,371
1,100 Conagra, Inc. 29,287
2,500 IBP, Inc. 59,375
8,900 Nabisco Group Holdings* 174,106
1,300 Nabisco Holdings Corp. 56,225
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORESM U.S. EQUITY FUND
Statement of Investments (continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - (continued)
Food & Beverages - (continued)
800 Pepsico, Inc. $ 30,950
600 The Seagram Company, Ltd. 30,225
1,982 Unilever NV 138,245
----------
536,784
-------------------------------------------------------------------
Forest Products - 0.1%
200 Weyerhaeuser Co. 13,750
-------------------------------------------------------------------
Health Suppliers/Services - 2.5%
500 Allergan, Inc. 55,500
1,000 Bard C R, Inc. 47,812
500 Bausch & Lomb, Inc. 38,250
650 Cardinal Health, Inc. 41,681
1,500 Johnson & Johnson 147,000
1,800 Pacificare Health Systems* 129,488
----------
459,731
-------------------------------------------------------------------
Healthcare Management - 1.1%
2,200 Columbia/HCA Healthcare Corp. 50,187
500 United Healthcare Corp. 31,313
1,300 Wellpoint Health Networks, Inc.* 110,338
----------
191,838
-------------------------------------------------------------------
Industrial Machinery - 0.4%
1,000 Ingersoll-Rand Co. 64,625
-------------------------------------------------------------------
Information Management - 0.2%
400 Sabre Group Holdings, Inc.* 27,500
-------------------------------------------------------------------
Insurance Brokers & Other Insurance - 1.0%
2,400 Marsh & McLennan & Co. 181,200
-------------------------------------------------------------------
Insurance-Life - 0.7%
400 American General Corp. 30,150
700 Equitable Companies, Inc. 46,900
900 Hartford Life, Inc. 47,362
----------
124,412
-------------------------------------------------------------------
Insurance-Property and Casualty - 3.7%
1,800 Allstate Corp. 64,575
2,335 American International Group, Inc. 273,341
1,400 Hartford Financial Services Group, Inc. 81,638
1,700 Loews Corp. 134,513
2,900 Travelers Property & Casualty Corp. 113,463
----------
667,530
-------------------------------------------------------------------
Integrated Oil - 5.7%
300 Chevron Corp. 28,556
7,500 Exxon Corp. 578,437
700 Mobil Corp. 69,300
5,600 Royal Dutch Petroleum Co. ADR 337,400
300 Texaco, Inc. 18,750
----------
1,032,443
-------------------------------------------------------------------
Internet Software - 0.4%
700 America Online, Inc.* 77,350
-------------------------------------------------------------------
Investment Brokers & Managers - 2.0%
1,400 Bear Stearns Companies, Inc. $ 65,449
1,400 Charles Schwab Corp. 153,825
1,400 Morgan Stanley Dean Witter & Co. 143,500
----------
362,774
-------------------------------------------------------------------
Local Exchange Companies - 2.2%
700 Ameritech Corp. 51,450
1,900 Bell Atlantic Corp. 124,212
2,500 BellSouth Corp. 117,187
1,300 GTE Corp. 98,475
----------
391,324
-------------------------------------------------------------------
Logistics/Rail - 0.4%
2,200 Burlington Northern Santa Fe Corp. 68,200
-------------------------------------------------------------------
Media & Communications - 3.0%
300 Alltel Corporation 21,450
2,800 BCE, Inc. 138,075
1,000 Qualcomm, Inc.* 143,500
2,600 SBC Communications, Inc. 150,800
800 Scientific-Atlanta, Inc. 28,800
500 Time Warner, Inc. 36,750
400 Viacom Inc. Class B* 17,600
----------
536,975
-------------------------------------------------------------------
Mining - 0.5%
1,400 Alcoa, Inc. 86,625
-------------------------------------------------------------------
Oil & Gas Services - 0.9%
2,500 Schlumberger, Ltd. 159,219
-------------------------------------------------------------------
Personal Computers and Peripherals - 1.2%
300 Apple Computer, Inc.* 13,894
3,000 Lexmark International Group, Inc.* 198,188
----------
212,082
-------------------------------------------------------------------
Pharmaceuticals - 6.4%
500 Abbott Laboratories 22,750
1,300 American Home Products Corp. 74,750
4,500 Amgen, Inc.* 273,938
1,600 Biogen, Inc.* 102,900
5,000 Bristol-Myers Squibb Co. 352,187
400 Genzyme Corp.* 19,399
72 Genzyme Corp. (Surgical Products Division) 315
1,400 Merck & Co. 103,600
1,000 Pfizer, Inc. 109,750
2,000 Schering-Plough Corp. 106,000
----------
1,165,589
-------------------------------------------------------------------
Recreational Products - 0.2%
1,200 Hasbro, Inc. 33,525
-------------------------------------------------------------------
Restaurants & Hotels - 0.5%
1,800 Tricon Global Restaurants, Inc.* 97,425
-------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORESM U.S. EQUITY FUND
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - (continued)
Retail - 2.5%
1,900 Best Buy Co., Inc.* $ 128,250
3,000 Home Depot, Inc. 193,312
1,400 Lowes Companies, Inc. 79,363
1,200 Tandy Corp. 58,650
----------
459,575
--------------------------------------------------------------
Semiconductors - 1.8%
5,400 Intel Corp. 321,300
--------------------------------------------------------------
Specialty Finance & Agencies - 2.3%
890 Associates First Capital Corp. 39,438
1,100 Federal Home Loan Mortgage Corp. 63,800
500 Federal National Mortgage Association 34,187
2,950 Providian Financial Corp. 275,825
----------
413,250
--------------------------------------------------------------
Specialty Retail - 2.6%
300 Circuit City Stores, Inc. 27,900
3,300 CVS Corp. 167,475
2,600 Staples, Inc.* 80,438
500 Tiffany & Co. 48,250
2,900 Wal-Mart Stores, Inc. 139,925
----------
463,988
--------------------------------------------------------------
Steel - 0.1%
2,100 Bethlehem Steel Corp.* 16,144
--------------------------------------------------------------
Supermarkets - 1.3%
1,100 Albertson's, Inc. 56,719
3,600 Food Lion, Inc. 42,750
3,200 Kroger Co.* 89,400
1,000 Safeway, Inc.* 49,500
----------
238,369
--------------------------------------------------------------
Telecommunications - 3.8%
6,465 AT&T Corp. 360,828
2,500 MCI Worldcom, Inc.* 215,156
2,100 Sprint Corp. 110,906
----------
686,890
--------------------------------------------------------------
Telecommunications Equipment - 3.8%
5,000 Cisco Systems, Inc.* 322,500
1,800 Lucent Technologies, Inc. 121,388
1,100 Telephone & Data Systems, Inc. 80,369
850 Vodafone AirTouch PLC. ADR 167,450
----------
691,707
--------------------------------------------------------------
Tobacco - 1.9%
4,200 Fortune Brands, Inc. 173,775
2,100 Philip Morris Companies, Inc. 84,394
2,967 RJ Reynolds Tobacco Holdings* 93,450
----------
351,619
--------------------------------------------------------------
Utilities - 2.1%
700 Dominion Resources, Inc. 30,319
400 Duke Energy Co. 21,750
900 Edison International, Inc. 24,075
700 Emerson Electric Co. 44,013
500 Entergy Corp. 15,625
2,000 FPL Group, Inc. 109,250
--------------------------------------------------------------
Shares Description Value
Common Stocks - (continued)
Utilities - (continued)
400 GPU, Inc. $ 16,875
900 PECO Energy Co. 37,688
200 Pinnacle West Capital Corp. 8,050
1,600 Texas Utilities Co. 66,000
-----------
373,645
--------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $14,760,398) $17,338,727
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
<C> <S> <C> <C>
U.S. Treasury Obligation - 0.2%
U.S. Treasury Bill(a)
$ 40,000 4.97%(b) 12/09/99 $ 39,149
--------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATION
(Cost $39,132) $ 39,149
--------------------------------------------------------------------------------------------
Repurchase Agreement - 2.2%
Joint Repurchase Agreement Account II(c)
$400,000 5.13% 07/01/99 $ 400,000
--------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $400,000) $ 400,000
--------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $15,199,530)(d) $17,777,876
--------------------------------------------------------------------------------------------
Federal Income Tax Information:
Gross unrealized gain for investments in which
value exceeds cost $ 2,769,533
Gross unrealized loss for investments in which
cost exceeds value (191,187)
--------------------------------------------------------------------------------------------
Net unrealized gain $ 2,578,346
--------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
Futures contracts open at June 30, 1999 are as fol-
lows:
<CAPTION>
Number of
Contracts Settlement Unrealized
Type Long(e) Month Gain
-----------------------------------------------------
<S> <C> <C> <C>
S & P 500 Index 1 September 1999 $6,769
-----------------------------------------------------
</TABLE>
* Non-income producing security.
(a) The security is being segregated as collateral for futures margin
requirements.
(b) The interest rate disclosed for the security represents effective yield
to maturity.
(c) The repurchase agreement is fully collateralized by Federal Obligations.
(d) The amount stated also represents aggregate cost for federal income tax
purposes.
(e) Each S&P 500 Stock Index represents $250,000 in notional par value. The
total net notional amount and net market value are $338,656 and $345,425,
respectively. The determination of notional amounts as presented here are
indicative only of volume of activity and not a measure of market risk.
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of total net assets.
------------------------------------------------------------------------------
Investment Abbreviations:
ADR--American Depository Receipt
------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE LARGE CAP GROWTH FUND
Shareholder Letter
Dear Shareholders,
We are pleased to report on the performance of the Goldman Sachs Variable In-
surance Trust CORE Large Cap Growth Fund. This semiannual report covers the
six-month period ended June 30, 1999.
Performance Review
For the six-month period ended June 30, 1999 the Fund gen-
erated a 12.50% cumulative total return, outperforming the
10.45% cumulative total return generated by its benchmark,
the Russell 1000 Growth Index.
The CORE strategy is a well-defined investment process that
has historically provided consistent, risk-managed perfor-
mance, with a reduced risk that returns will be very dif-
ferent from those of a specific benchmark over time.
Additionally, the diversification of our models typically
adds value, because when one theme doesn't work, others
usually do. For example, when growth stocks underperform,
our value component (i.e. seeking the most attractively
valued stocks within the growth universe) can lead to
strong results.
The Fund's investment process and diversification were key
benefits during the reporting period, as we experienced
dramatic shifts in investor sentiment. During the first
quarter of the year the stock market's rally was extremely
narrow, limited mostly to a few very large growth companies
and the technology sector. However, with the economy grow-
ing faster than anticipated and an economic recovery becom-
ing more evident outside the U.S., investors began focusing
on cyclical sectors of the market that tend to be more val-
ue-oriented.
Despite the change in preference, our quantitative process
helped us to select winning stocks with good momentum that
also appeared to be good values. As a result, the Fund was
able to outperform its benchmark by 205 basis points.
Investment Objective
The Fund seeks long-term capital growth, primarily through
a broadly diversified portfolio of equity securities that
are expected to have better prospects for earnings growth
than the growth rate of the general domestic economy.
The portfolio employs a disciplined approach that combines
fundamental investment research provided by Goldman, Sachs
& Co.'s Global Investment Research Department and consensus
opinions, with quantitative analysis generated by the Asset
Management Division's proprietary model. This quantitative
system evaluates each stock using many different criteria,
including valuation measures, growth expectations, earnings
momentum and risk profile. It also objectively analyses the
impact of current economic conditions on different types of
stocks to determine where the emphasis should be placed.
The portfolio construction process evaluates stocks based
on their overall expected return and their contribution to
portfolio risk. The final portfolio is the one that we be-
lieve has the highest expected return for the targeted
amount of risk.
10
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE LARGE CAP GROWTH FUND
Portfolio Composition
Top 10 Portfolio Holdings as of June 30, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Line of Business Net Assets
------- ---------------- -------------
<S> <C> <C>
Microsoft
Corp. Computer Services/Software 5.6%
General
Electric
Co. Electronics & Other Electrical Equipment 4.9
Bristol-
Myers
Squibb
Co. Pharmaceuticals 4.1
Cisco
Systems,
Inc. Telecommunications Equipment 3.2
Hertz
Corp. Auto/ Vehicle 2.8
Intel
Corp. Semiconductors 2.8
Procter &
Gamble
Co. Consumer Staples 2.7
Charles
Schwab
Corp. Investment Brokers & Managers 2.7
Eastman
Kodak
Co. Consumer Products 2.5
Johnson &
Johnson Health Suppliers/Services 2.3
</TABLE>
* Opinions expressed in this report represent our present
opinions only. References to individual securities should
not be construed as commitments that such securities will
be retained in the Fund. From time to time, the Fund may
change the individual securities it holds, the number or
types of securities held and the markets in which it in-
vests. References to individual securities do not consti-
tute recommendations to the investor to buy, hold or sell
such securities. In addition, references to past perfor-
mance of the Fund do not indicate future returns, which are
not guaranteed and will vary. Furthermore, the value of
shares of the Fund may fall as well as rise.
Outlook
As always, the Fund remains fully invested in stocks. Our
sector weightings and distribution among size categories
are targeted to stay close to those of the Russell 1000
Growth index, as do exposures to other risk factors (such
as dividend yield). Based on long-term results, our quanti-
tative process prefers low P/E and low price/book stocks
with good momentum characteristics that exhibit stability
in stock price and earnings, and that are favored by re-
search analysts. As such, we maintain an exposure to secu-
rities that display these factors.
We thank you for your investment and look forward to your
continued confidence.
Goldman Sachs Quantitative Equity Management Team
July 29, 1999
11
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE LARGE CAP GROWTH FUND
Statement of Investments
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - 99.3%
Aerospace/Defense - 1.1%
2,500 General Motors Corp. Class H $ 140,625
200 United Technologies Corp. 14,338
----------
154,963
--------------------------------------------------------------
Agriculture/Heavy Equipment - 0.4%
900 Caterpillar, Inc. 54,000
--------------------------------------------------------------
Airfreight, Truck & Other - 0.1%
200 FDX Corp.* 10,854
--------------------------------------------------------------
Airlines - 0.1%
300 Delta Air Lines, Inc. 17,288
--------------------------------------------------------------
Alcohol - 0.4%
700 Anheuser Busch Companies, Inc. 49,656
--------------------------------------------------------------
Auto/Vehicle - 3.8%
500 Ford Motor Co. 28,219
6,300 Hertz Corp. 390,600
2,000 Navistar International Corp.* 100,000
----------
518,819
--------------------------------------------------------------
Banks - 0.7%
900 Capital One Financial Corp. 50,119
250 Citigroup, Inc. 11,875
1,200 Firstar Corp. 33,600
----------
95,594
--------------------------------------------------------------
Chemicals-Commodity - 0.9%
500 Avery Dennison Corp. 30,188
700 Dow Chemicals Co. 88,813
----------
119,001
--------------------------------------------------------------
Chemicals-Specialty - 0.1%
200 H.B. Fuller Co. 13,675
--------------------------------------------------------------
Computer Services/ Software - 8.1%
1,400 Automatic Data Processing, Inc. 61,600
400 Computer Sciences Corp.* 27,675
400 First Data Corp. 19,575
700 Intuit, Inc.* 63,088
8,500 Microsoft Corp.* 766,594
1,600 Novell, Inc.* 42,400
1,050 Oracle Corp.* 38,981
1,500 Siebel Systems, Inc.* 99,563
----------
1,119,476
--------------------------------------------------------------
Conglomerates - 0.8%
1,200 Tyco International, Ltd. 113,700
--------------------------------------------------------------
Construction/Environmental Services - 0.4 %
900 Waste Management, Inc. 48,393
--------------------------------------------------------------
Consumer Goods - 0.5%
1,200 Nike, Inc. 75,999
--------------------------------------------------------------
Consumer Products - 2.5%
5,000 Eastman Kodak Co. $ 338,750
--------------------------------------------------------------
Consumer Staples - 3.3%
500 Clorox Co. 53,406
500 Kimberly Clark Corp. 28,500
4,200 Procter & Gamble Co. 374,850
----------
456,756
--------------------------------------------------------------
Department Stores - 0.9%
1,800 Dayton Hudson Corp. 117,000
--------------------------------------------------------------
Electronics & Other Electrical Equipment - 5.2%
6,000 General Electric Co. 678,000
500 Johnson Controls, Inc. 34,656
----------
712,656
--------------------------------------------------------------
Enterprise Systems - 6.2%
2,000 EMC Corp.* 110,000
2,400 Hewlett-Packard Co. 241,200
1,900 International Business Machines, Inc. 245,575
2,800 Sun Microsystems, Inc.* 192,850
500 Unisys Corp.* 19,469
800 Xerox Corp. 47,250
----------
856,344
--------------------------------------------------------------
Entertainment & Leisure - 0.1%
400 Carnival Cruise Lines Corp. 19,400
--------------------------------------------------------------
Financial Services - 0.6%
600 American Express Co. 78,075
--------------------------------------------------------------
Food & Beverages - 4.7%
2,000 Coca-Cola Co. 125,000
600 Coca-Cola Enterprises, Inc. 17,850
1,200 H.J. Heinz Co. 60,174
3,900 IBP, Inc. 92,625
1,900 Nabisco Group Holdings* 37,169
400 Nabisco Holdings Corp. 17,300
1,900 Pepsico, Inc. 73,506
200 Quaker Oats Co. 13,279
800 The Seagram Company, Ltd. 40,300
1,000 U.S. Foodservice, Inc.* 42,625
1,875 Unilever N V 130,781
----------
650,609
--------------------------------------------------------------
Health Suppliers/Services - 3.7%
700 Allergan, Inc. 77,700
800 Bergen Brunswig Corp. 13,800
600 Biomet, Inc. 23,850
300 Cardinal Health, Inc. 19,237
3,300 Johnson & Johnson 323,400
600 Medtronic, Inc. 46,725
----------
504,712
--------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE LARGE CAP GROWTH FUND
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - (continued)
Healthcare Management - 2.0%
1,800 Columbia/HCA Healthcare Corp. $ 41,062
500 Lincare Holdings, Inc.* 12,500
2,600 Wellpoint Health Networks, Inc.* 220,675
----------
274,237
------------------------------------------------------------
Information Management - 0.2%
300 At Home Corp.* 16,181
200 Sabre Group Holdings, Inc.* 13,750
----------
29,931
------------------------------------------------------------
Insurance Brokers & Other Insurance - 0.2%
400 Marsh & Mclennan & Co. 30,200
------------------------------------------------------------
Insurance-Property and Casualty - 1.2%
1,021 American International Group, Inc. 119,521
1,100 Travelers Property & Casualty Corp. 43,038
----------
162,559
------------------------------------------------------------
Integrated Oil - 0.4%
700 Exxon Corp. 53,988
------------------------------------------------------------
Internet Software - 2.1%
2,100 America Online, Inc.* 232,050
300 Yahoo!* 51,675
----------
283,725
------------------------------------------------------------
Investment Brokers & Managers - 2.7%
3,400 Charles Schwab Corp. 373,575
------------------------------------------------------------
Local Exchange Companies - 2.2%
1,000 GTE Corp. 75,750
2,524 MCI Worldcom, Inc.* 217,222
200 Sprint Corp. 10,563
----------
303,535
------------------------------------------------------------
Media & Communications - 3.0%
200 Cablevision Systems Corp.* 14,000
1,700 Comcast Corp. 65,344
800 Qualcomm, Inc.* 114,800
2,300 Qwest Communications International* 76,090
1,400 SBC Communications, Inc. 81,228
1,400 Viacom, Inc. Class B* 61,600
----------
413,062
------------------------------------------------------------
Mining - 0.2%
300 Alcoa, Inc. 18,563
700 Barrick Gold Corp. 13,563
----------
32,126
------------------------------------------------------------
Oil & Gas Services - 0.6%
1,272 Schlumberger, Ltd. 81,011
------------------------------------------------------------
Oil Refining & Marketing - 0.3%
700 Calpine Corp.* 37,814
------------------------------------------------------------
Personal Computers and Peripherals - 3.0%
400 Apple Computer, Inc.* $ 18,525
3,000 Dell Computer Corp.* 111,000
3,600 Lexmark International Group, Inc.* 237,825
2,000 Seagate Technology, Inc.* 51,250
----------
418,600
-----------------------------------------------------------
Pharmaceuticals - 13.0%
2,800 Abbott Laboratories 127,400
800 American Home Products Corp. 46,000
4,400 Amgen, Inc.* 267,850
1,400 Biogen, Inc.* 90,038
8,000 Bristol-Myers Squibb Co. 563,500
600 Eli Lilly & Co. 42,975
900 Genzyme Corp.* 43,668
2,500 Merck & Co. 185,000
1,900 Pfizer, Inc. 208,525
2,300 Schering-Plough Corp. 121,900
1,400 Warner-Lambert Co. 97,125
----------
1,793,981
-----------------------------------------------------------
Recreational Products - 0.1%
500 Hasbro, Inc. 13,969
-----------------------------------------------------------
Restaurants & Hotels - 0.8%
1,300 Marriott International, Inc. 48,613
1,100 Tricon Global Restaurants, Inc.* 59,538
----------
108,151
-----------------------------------------------------------
Retail - 3.4%
2,600 Best Buy Co., Inc.* 175,500
3,800 Home Depot, Inc. 244,863
600 Lowes Companies, Inc. 34,013
400 Tandy Corp. 19,550
----------
473,926
-----------------------------------------------------------
Semiconductors - 4.5%
300 Applied Materials, Inc.* 22,163
6,400 Intel Corp. 380,800
900 LSI Logic Corp.* 41,513
2,400 Tech Data Corp.* 91,848
1,500 Xilinx, Inc.* 85,905
----------
622,229
-----------------------------------------------------------
Software & Services - 0.6%
600 Adobe Systems, Inc. 49,294
600 Electronic Data Systems 33,938
----------
83,232
-----------------------------------------------------------
Specialty Finance & Agencies - 0.7%
300 Associates First Capital Corp. 13,294
900 Providian Financial Corp. 84,150
----------
97,444
-----------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE LARGE CAP GROWTH FUND
Statement of Investments (continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - (continued)
Specialty Retail - 2.8%
500 Ann Taylor Stores Corp.* $ 22,500
300 Circuit City Stores, Inc. 27,900
1,500 CVS Corp. 76,125
1,300 Staples, Inc.* 40,219
300 Tiffany & Co. 28,950
4,000 Wal-Mart Stores, Inc. 193,000
-----------
388,694
--------------------------------------------------------
Supermarkets - 1.1%
300 Albertson's, Inc. 15,468
1,500 Food Lion, Inc. 17,813
1,600 Kroger Co.* 44,700
1,600 Safeway, Inc.* 79,200
-----------
157,181
--------------------------------------------------------
Telecommunications - 0.9%
1,800 AT&T Corp. 100,463
400 Nextlink Communications* 29,750
-----------
130,213
--------------------------------------------------------
Telecommunications Equipment - 7.1%
6,800 Cisco Systems, Inc.* 438,600
1,600 General Instrument Corp.* 68,000
4,400 Lucent Technologies, Inc. 296,725
300 Telephone & Data Systems, Inc. 21,919
750 Vodafone AirTouch PLC. ADR 147,750
-----------
972,994
--------------------------------------------------------
Tobacco - 1.3%
600 Fortune Brands, Inc. 24,825
3,900 Philip Morris Companies, Inc. 156,731
-----------
181,556
--------------------------------------------------------
Utilities - 0.3%
700 Emerson Electric Co. 44,013
--------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $10,998,178) $13,687,666
</TABLE>
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
<S> <C> <C> <C>
U.S. Treasury Obligations - 0.5%
U.S. Treasury Bills
$30,000 4.73%(a) 12/09/99 $ 29,361
40,000 4.87%(a) 12/09/99 39,149
------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $68,497) $ 68,510
------------------------------------------------------------------------------------------
Repurchase Agreement - 7.3%
Joint Repurchase Agreement Account II(b)
$1,000,000 5.13% 07/01/99 $ 1,000,000
------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $1,000,000) $ 1,000,000
------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $12,066,675)(c) $14,756,176
------------------------------------------------------------------------------------------
Federal Income Tax Information:
Gross unrealized gain for investments in which value
exceeds cost $ 2,825,662
Gross unrealized loss for investments in which cost
exceeds value (136,161)
------------------------------------------------------------------------------------------
Net unrealized gain $ 2,689,501
------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
(a) The interest rate disclosed for this security represents effective yield
to maturity.
(b) The repurchase agreement is fully collateralized by Federal Agency
obligations.
(c) The amount stated also represents aggregate cost for federal income tax
purposes.
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of total net assets.
------------------------------------------------------------------------------
Investment Abbreviations:
ADR--American Depository Receipt
------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE LARGE CAP VALUE FUND
Shareholder Letter
Dear Shareholders,
We are pleased to report on the performance of the Goldman Sachs Variable In-
surance Trust CORE Large Cap Value Fund. This semiannual report covers the
period from April 1, 1999, when the Fund began operations, through June 30,
1999.
Performance Review
From April 1, 1999 through June 30, 1999, the Fund gener-
ated a 10.90% cumulative total return. This compares to an
11.27% cumulative total return of its benchmark, the Rus-
sell 1000 Value Index.
The CORE strategy is a well-defined investment process that
has historically provided consistent, risk-managed perfor-
mance, with a reduced risk that returns will be very dif-
ferent from those of a specific benchmark over time.
Additionally, the diversification of our models typically
adds value, because when one theme doesn't work, others
usually do. For example, when momentum stocks underperform,
value stocks typically advance more than average.
During the reporting period, the market experienced dra-
matic shifts in investor sentiment. In the first quarter of
the year the stock market's rally was extremely narrow,
limited mostly to a few very large growth companies and the
technology sector. As the year progressed, investors ro-
tated assets into value-oriented, smaller-cap and cyclical
issues. The CORE process resulted in very strong returns
during its first three months of operations. However, we
prefer stocks with good momentum, and as the market shift
occurred in the second quarter, those stocks with the poor-
est momentum were the better performers, hurting overall
returns.
Investment Objective
The Fund seeks long-term growth of capital and dividend in-
come primarily through a broadly diversified portfolio of
large-cap equity securities of U.S. issuers that are sell-
ing at low to modest valuations relative to general market
measures.
The portfolio employs a disciplined approach that combines
fundamental investment research provided by Goldman, Sachs
& Co.'s Global Investment Research Department and consensus
opinions, with quantitative analysis generated by the Asset
Management Division's proprietary model. This quantitative
system evaluates each stock using many different criteria,
including valuation measures, growth expectations, earnings
momentum and risk profile. It also objectively analyses the
impact of current economic conditions on different types of
stocks to determine where the emphasis should be placed.
The portfolio construction process evaluates stocks based
on their overall expected return and their contribution to
portfolio risk. The final portfolio is the one that we be-
lieve has the highest potential return for the targeted
amount of risk.
15
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE LARGE CAP VALUE FUND
Shareholder Letter (continued)
Portfolio Composition
Top 10 Portfolio Holdings as of June 30, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Line of Business Net Assets
------- ---------------- -------------
<S> <C> <C>
Exxon Corp. Integrated Oil 4.4%
IBM Corp. Enterprise Systems 4.3
AT&T Corp. Telecommunications 3.8
Bank of America Corp. Banks 3.3
Citigroup Inc. Banks 3.0
Mobil Corp. Integrated Oil 2.4
Chevron Corp. Integrated Oil 2.3
Chase Manhattan Corp. Banks 1.8
Washington Post Co. Publishing 1.6
Bell Atlantic Corp. Local Exchange Companies 1.6
</TABLE>
* Opinions expressed in this report represent our present
opinions only. References to individual securities should
not be construed as commitments that such securities will
be retained in the Fund. From time to time, the Fund may
change the individual securities it holds, the number or
types of securities held and the markets in which it in-
vests. References to individual securities do not consti-
tute recommendations to the investor to buy, hold or sell
such securities. In addition, references to past perfor-
mance of the Fund do not indicate future returns, which are
not guaranteed and will vary. Furthermore, the value of
shares of the Fund may fall as well as rise.
Outlook
As always, the Fund remains fully invested in stocks. The
Fund's sector weightings and distribution among size cate-
gories are targeted to stay close to those of the Russell
1000 Value index, as do exposures to other risk factors
(such as dividend yield). Based on long-term results, our
quantitative process prefers low P/E and low price/book
stocks with good momentum characteristics that exhibit sta-
bility in stock price and earnings, and that are favored by
research analysts. As such, we maintain an exposure to se-
curities that display these factors.
We thank you for your investment and look forward to your
continued confidence.
Goldman Sachs Quantitative Equity Management Team
July 29, 1999
16
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE LARGE CAP VALUE FUND
Statement of Investments
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - 101.1%
Aerospace/Defense - 1.0%
600 General Motors Corp. Class H $ 33,750
--------------------------------------------------------------
Airlines - 0.9%
300 Continental Airlines, Inc. Class B* 11,288
300 UAL Corp.* 19,500
----------
30,788
--------------------------------------------------------------
Auto Suppliers - 0.4%
208 Delphi Automative Systems* 3,867
100 SPX Corp. 8,350
----------
12,217
--------------------------------------------------------------
Auto/Vehicle - 1.9%
400 Ford Motor Co. 22,575
300 General Motors Corp. 19,800
200 Hertz Corp. 12,400
200 Navistar International Corp.* 10,000
----------
64,775
--------------------------------------------------------------
Banks - 15.2%
1,500 BankAmerica Corp. 109,969
100 Bank of New York, Inc. 3,669
100 Bank One Corp. 5,959
700 Chase Manhattan Corp. 60,638
2,100 Citigroup, Inc. 99,750
700 Comerica, Inc. 41,606
100 First Union Corp. 4,700
1,300 Firstar Corp. 36,400
1,000 Fleet Financial Group, Inc. 44,375
100 National City Corp. 6,550
600 Suntrust Banks, Inc. 41,663
500 Unionbancal Corp.* 18,063
800 Wells Fargo Co. 34,200
----------
507,542
--------------------------------------------------------------
Chemicals-Commodity - 3.6%
500 Avery Dennison Corp. 30,188
400 Dow Chemicals Co. 50,750
400 Du Pont (E.I.) de Nemours & Co. 27,325
300 Rohm & Haas Co. 12,863
----------
121,126
--------------------------------------------------------------
Computer Hardware - 0.2%
100 Gateway, Inc.* 5,900
--------------------------------------------------------------
Computer Services/Software - 0.5%
300 Electronic Data Systems 16,969
--------------------------------------------------------------
Consumer Products - 1.2%
600 Eastman Kodak Co. 40,650
--------------------------------------------------------------
Consumer Staples - 1.2%
200 Clorox Co. 21,369
200 Procter & Gamble Co. 17,854
----------
39,223
--------------------------------------------------------------
Department Stores - 0.2%
100 Dayton Hudson Corp. $ 6,500
--------------------------------------------------------------
Electronics & Other Electrical Equipment - 2.6%
700 American Standard Co., Inc.* 33,600
100 General Electric Co. 11,134
500 Johnson Controls, Inc. 34,656
100 Level 3 Communications* 6,134
----------
85,524
--------------------------------------------------------------
Enterprise Systems - 5.5%
400 Hewlett-Packard Co. 40,200
1,100 International Business Machines, Inc. 142,175
----------
182,375
--------------------------------------------------------------
Entertainment & Leisure - 2.1%
700 Carnival Cruise Lines Corp. 33,950
800 Royal Caribbean Cruise Lines 35,000
----------
68,950
--------------------------------------------------------------
Financial Services - 1.8%
200 American Express Co. 26,025
100 Countrywide Credit, Inc. 4,275
200 Golden West Financial 19,600
400 Heller Financial, Inc. 11,125
----------
61,025
--------------------------------------------------------------
Food & Beverages - 2.9%
500 General Mills, Inc. 40,198
700 IBP, Inc. 16,625
1,800 Nabisco Group Holdings* 35,213
100 Nabisco Holdings Corp. 4,325
----------
96,361
--------------------------------------------------------------
Forest Products - 0.9%
200 Georgia-Pacific Corp. 9,475
300 Weyerhaeuser Co. 20,625
----------
30,100
--------------------------------------------------------------
Health Suppliers/Services - 3.2%
400 Bausch & Lomb, Inc. 30,600
500 Johnson & Johnson 49,015
400 Pacificare Health Systems* 28,775
----------
108,390
--------------------------------------------------------------
Healthcare Management - 0.6%
200 United Healthcare Corp. 12,525
100 Wellpoint Health Networks, Inc.* 8,488
----------
21,013
--------------------------------------------------------------
Home Builders - 0.1%
100 Centex Corp. 3,756
--------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE LARGE CAP VALUE FUND
Statement of Investments (continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - (continued)
Household Durables - 0.7%
200 Maytag Corp. $ 13,938
100 Mohawk Industries, Inc.* 3,038
100 Whirlpool Corp. 7,400
----------
24,376
----------------------------------------------------------------
Industrial Machinery - 1.5%
300 Ingersoll-Rand Co. 19,388
100 Nacco Industries, Inc. 7,350
400 Tecumseh Products Co. 24,225
----------
50,963
----------------------------------------------------------------
Information Management - 0.2%
100 Sabre Group Holdings, Inc.* 6,875
----------------------------------------------------------------
Insurance Brokers & Other Insurance - 1.2%
200 AMBAC Financial Group, Inc. 11,425
400 Marsh & McLennan & Co. 30,200
----------
41,625
----------------------------------------------------------------
Insurance-Life - 1.9%
200 Cigna Corp. 17,800
600 Hartford Life, Inc. 31,575
300 Nationwide Financial Services, Inc. 13,575
----------
62,950
----------------------------------------------------------------
Insurance-Property and Casualty - 5.1%
500 Allstate Corp. 17,938
400 American International Group, Inc. 46,825
700 Hartford Financial Services Group, Inc. 40,819
500 Loews Corp. 39,563
600 Travelers Property & Casualty Corp. 23,475
----------
168,620
----------------------------------------------------------------
Integrated Oil - 9.2%
800 Chevron Corp. 76,150
1,900 Exxon Corp. 146,538
800 Mobil Corp. 79,200
100 Royal Dutch Petroleum Co. ADR 6,027
----------
307,915
----------------------------------------------------------------
Investment Brokers & Managers - 2.7%
300 JP Morgan and Company, Inc. 42,156
200 Merrill Lynch & Company, Inc. 15,988
300 Morgan Stanley Dean Witter & Co. 30,750
----------
88,894
----------------------------------------------------------------
Local Exchange Companies - 5.2%
700 Ameritech Corp. 51,450
800 Bell Atlantic Corp. 52,300
1,000 BellSouth Corp. 46,875
300 GTE Corp. 22,725
----------
173,350
----------------------------------------------------------------
Logistics/Rail - 1.1%
1,200 Burlington Northern Santa Fe Corp. 37,200
----------------------------------------------------------------
Media & Communications - 3.3%
400 Infinity Broadcasting Corp.* $ 11,900
100 Knight Ridder, Inc. 5,494
300 MediaOne Group, Inc.* 22,313
900 SBC Communications, Inc. 52,200
300 U.S. West, Inc. 17,625
----------
109,532
----------------------------------------------------------------
Oil & Gas Services - 0.8%
400 Schlumberger, Ltd. 25,475
----------------------------------------------------------------
Personal Computers and Peripherals - 1.0%
500 Lexmark International Group, Inc.* 33,031
----------------------------------------------------------------
Pharmaceuticals - 0.5%
200 Long Drug Stores, Inc. 6,912
100 Pfizer, Inc. 10,977
----------
17,889
----------------------------------------------------------------
Publishing - 1.6%
100 Washington Post Co. 53,777
----------------------------------------------------------------
Retail - 2.4%
100 Circuit City Stores, Inc. 9,300
500 Home Depot, Inc. 32,219
100 Lowes Companies, Inc. 5,669
200 Tandy Corp. 9,775
100 Tiffany & Co. 9,650
300 Zale Corp.* 12,000
----------
78,613
----------------------------------------------------------------
Semiconductors - 0.7%
300 Applied Materials, Inc.* 22,162
----------------------------------------------------------------
Specialty Finance & Agencies - 0.6%
300 Federal National Mortgage Association 20,513
----------------------------------------------------------------
Specialty Retail - 0.6%
105 Intimate Brands, Inc. 4,974
500 Staples, Inc.* 15,469
----------
20,443
----------------------------------------------------------------
Steel - 1.0%
1,200 USX-US Steel Group 32,400
----------------------------------------------------------------
Supermarkets - 0.5%
300 CVS Corp. 15,225
----------------------------------------------------------------
Telecommunications - 4.7%
2,250 AT&T Corp. 125,578
300 MCI Worldcom, Inc.* 25,819
100 United States Cellular Corp.* 5,350
----------
156,747
----------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE LARGE CAP VALUE FUND
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - (continued)
Telecommunications Equipment - 2.0%
300 Scientific-atlanta, Inc. $ 10,800
500 Telephone & Data Systems, Inc. 36,531
100 Vodafone Air Touch PLC. ADR 19,700
----------
67,031
--------------------------------------------------------
Utilities - 6.6%
100 Central & South West Corp. 2,338
200 Consolidated Edison, Inc. 9,054
100 Dominion Resources, Inc. 4,331
600 Dte Energy Company 24,000
500 Duke Energy Co. 27,198
200 El Paso Energy Corp. 7,038
200 Emerson Electric Co. 12,575
900 Entergy Corp. 28,125
700 FPL Group, Inc. 38,238
200 Montana Power Co. 14,106
300 PECO Energy Co. 12,563
1,000 Placer Dome, Inc. 11,813
700 Texas Utilities Co. 28,875
----------
220,254
--------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $3,079,287) $3,372,794
--------------------------------------------------------
TOTAL INVESTMENTS
(Cost $3,079,287)(a) $3,372,794
--------------------------------------------------------
Federal Income Tax Information:
Gross unrealized gain for investments
in which value exceeds cost $ 318,579
Gross unrealized loss for investments
in which cost exceeds value (25,072)
--------------------------------------------------------
Net unrealized gain $ 293,507
--------------------------------------------------------
</TABLE>
* Non-income producing security.
(a) The amount stated also represents aggregate cost for federal income tax
purposes.
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of total net assets.
------------------------------------------------------------------------------
Investment Abbreviations:
ADR--American Depository Receipt
------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SMALL CAP EQUITY FUND
Shareholder Letter
Dear Shareholders,
We are pleased to report on the performance of the Goldman Sachs Variable In-
surance Trust CORE Small Cap Equity Fund. This semiannual report covers the
six-month period ended June 30, 1999.
Performance Review
For the six-month period ended June 30, 1999 the Fund gen-
erated a 5.42% cumulative total return. Over the same time
period, the Fund's benchmark, the Russell 2000 Index, gen-
erated a cumulative total return of 9.28%.
The CORE strategy is a well-defined investment process that
has historically provided consistent, risk-managed perfor-
mance, with a reduced risk that returns will be very dif-
ferent from those of a specific benchmark over time.
However, much of the reporting period was characterized by
a sharp increase in return dispersion (the difference be-
tween the best- and worst-performing stocks), among the
stocks in our universe. This often impaired the effective-
ness of using a systematic approach to stock selection and
portfolio construction.
In the first quarter of the year, the stock market's rally
was extremely narrow, limited mostly to a few very large
growth companies and the technology sector. During that pe-
riod small- cap stocks fared poorly, and those that did
well were companies with no earnings (such as Internet
stocks). In contrast, the CORE process typically prefers
stocks with earnings. Additionally, the four basic compo-
nents that the CORE investment process emphasizes in stock
selection did not consistently work well. For example,
stocks with poor momentum often fared better than those
with good momentum; low beta but volatile stocks did well,
as did those that were not favored by research analysts.
However, with the economy rising at faster than anticipated
rates, investors began focusing on cyclical sectors of the
market that tend to be more value oriented. And after a
prolonged period of sub-par results, smaller-cap stocks
outperformed their larger-cap counterparts in the second
quarter. During that period, our investment process per-
formed more in line with historical results, and the Fund's
15.1% return was similar to that of its benchmark.
Investment Objective
The Fund seeks long-term capital growth, primarily through
a broadly diversified portfolio of equity securities of
U.S. issuers with risk characteristics similar to those of
the Russell 2000 Index.
The portfolio employs a disciplined approach that combines
fundamental investment research provided by Goldman, Sachs
& Co.'s Global Investment Research Department and consensus
opinions, with quantitative analysis generated by the Asset
Management Division's proprietary model. This quantitative
system evaluates each stock using many different criteria,
including valuation measures, growth expectations, earnings
momentum and risk profile. It also objectively analyses the
impact of current economic conditions on different types of
stocks to determine where the emphasis should be placed.
The portfolio construc-
20
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SMALL CAP EQUITY FUND
tion process evaluates stocks based on their overall ex-
pected return and their contribution to portfolio risk. The
final portfolio is the one that we believe has the highest
potential return for the targeted amount of risk.
Portfolio Composition
Top 10 Portfolio Holdings as of June 30, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Line of Business Net Assets
------- ---------------- -------------
<S> <C> <C>
Nacco Industries, Inc. Industrial Machinery 2.6%
Dycom Industries, Inc. Construction/Environmental Services 1.5
Southwest Securities Group, Inc. Financial Services 1.4
Dollar Thrifty Automotive Group,
Inc. Auto Suppliers 1.3
Hollywood Entertainment Co. Entertainment & Leisure 1.1
Springs Industries, Inc. Textiles 1.0
Jefferies Group, Inc. Investment Brokers & Managers 0.9
Pilgrim's Pride Corp. Food & Beverages 0.9
Pulitzer, Inc. Media & Communications 0.8
Armco, Inc. Steel 0.8
</TABLE>
* Opinions expressed in this report represent our present
opinions only. References to individual securities should
not be construed as commitments that such securities will
be retained in the Fund. From time to time, the Fund may
change the individual securities it holds, the number or
types of securities held and the markets in which it in-
vests. References to individual securities do not consti-
tute recommendations to the investor to buy, hold or sell
such securities. In addition, references to past perfor-
mance of the Fund do not indicate future returns, which are
not guaranteed and will vary. Furthermore, the value of
shares of the Fund may fall as well as rise.
Outlook
As always, the Fund remains fully invested in stocks. The
Fund's sector weightings and distribution among size cate-
gories are targeted to stay close to those of the Russell
2000 index, as do exposures to other risk factors (such as
dividend yield). Based on long-term results, our quantita-
tive process prefers low P/E and low price/book stocks with
good momentum characteristics that exhibit stability in
stock price and earnings, and are favored by research ana-
lysts.
We thank you for your investment and look forward to your
continued confidence.
Goldman Sachs Quantitative Equity Management Team
July 29, 1999
21
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SMALL CAP EQUITY FUND
Statement of Investments
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - 100.3%
Advertising & Marketing - 0.1%
300 Advo, Inc.* $ 6,225
---------------------------------------------------------------
Aerospace/Defense - 0.6%
750 AAR Corp. 17,016
500 Fairchild Corp.* 6,375
200 Gencorp, Inc. 5,050
100 Precision Castparts Corp.(a) 4,250
----------
32,691
---------------------------------------------------------------
Agriculture/Heavy Equipment - 0.2%
200 Terex Corp.* 6,088
200 Toro Co. 7,879
----------
13,967
---------------------------------------------------------------
Airfreight, Truck & Other - 1.3%
200 Airborne Freight Corp. 5,537
300 Amtram, Inc.* 7,388
200 Coach U.S.A., Inc.* 8,387
100 Eagle U.S.A. Airfreight, Inc.* 4,244
200 Seacor Smit, Inc.* 10,700
2,900 Transmontaigne, Inc.* 36,431
----------
72,687
---------------------------------------------------------------
Airlines - 0.9%
500 Alaska Air Group, Inc.* 20,875
900 America West Holdings Corp. Class B* 16,987
150 Atlas Air, Inc.* 4,837
400 Skywest, Inc. 9,975
----------
52,674
---------------------------------------------------------------
Auto Suppliers - 2.8%
400 Arvin Industries, Inc. 15,150
300 Clarcor, Inc. 5,755
200 CSK Auto Corp.* 5,400
3,200 Dollar Thrifty Automotive Group, Inc.* 74,400
900 Group 1 Automotive* 19,012
300 Modine Manufacturing Co. 9,769
700 NL Industries, Inc. 7,788
500 Standard Products Co. 12,813
300 Superior Industries International 8,194
300 Tower Automotive, Inc.* 7,631
----------
165,912
---------------------------------------------------------------
Auto/Vehicle - 0.6%
1,000 Avis Rent A Car, Inc.* 29,124
204 Dura Automotive Systems, Inc.* 6,783
----------
35,907
---------------------------------------------------------------
Banks - 6.5%
300 Bancorp South, Inc. 5,437
300 Bancwest Corp. 11,137
400 Bank United Corp. 16,083
420 Commerce Bancorp, Inc. 17,955
220 CVB Financial Corp. 5,720
300 Downey Financial Corp. 6,580
200 First Citizens Bankshares 16,154
1,000 First Commonwealth Financial Corp. 23,875
400 First Republic Bank Corp.* 11,575
300 First Western Bancorp, Inc. 10,056
200 Greater Bay Bancorp 6,650
300 Hudson United Bancorp* 9,187
324 Imperial Bancorp* 6,419
600 Independence Community BA* 8,100
206 Mid America Bancorp 5,073
1,000 Ocean Financial Corp. 18,145
400 One Valley Bancorp, Inc. 15,000
200 Pacific Capital Bancorp 6,300
700 Republic Banking Corp. 13,489
700 Republic Security Financial 5,863
1,200 Richmond County Financial 23,124
300 Riggs National Corp. 6,169
600 Sky Financial Group, Inc. 16,350
1,000 Southwest Bancorp of Texas, Inc.* 18,000
400 Staten Island Bancorp, Inc. 7,200
400 Triangle Bancorp, Inc. 6,775
215 Trustco Bank Corp. 5,778
300 Ucar International, Inc.* 7,581
500 United Bankshares, Inc. 13,250
500 UST Corp. 15,125
200 Westamerica Bancorp 7,300
600 Western Bancorp 26,100
200 Whitney Holding Corp. 7,950
----------
379,500
---------------------------------------------------------------
Basic Industries - 0.1%
300 Ryerson Tull, Inc.* 6,769
---------------------------------------------------------------
Basic Materials and Natural Resources - 0.7%
2,500 Cyprus Amax Minerals Co. 38,019
---------------------------------------------------------------
Business Services - 2.8%
100 Abacus Direct Corp.* 9,150
200 ABM Industries, Inc. 6,138
700 Interim Services, Inc.* 14,437
1,500 Landauer, Inc. 44,250
300 Medquist, Inc.* 13,125
400 Metzler Group, Inc.* 11,050
800 Paymentech, Inc.* 20,316
300 Rent-A-Center, Inc.* 7,206
500 URS Corporation* 14,656
800 Wallace Computer Services, Inc. 20,000
----------
160,328
---------------------------------------------------------------
Chemical Products - 1.1%
500 Cambrex Corp. 13,125
700 Dexter Corp. 28,569
300 WD 40 Co. 7,500
900 Wellman, Inc. 14,344
----------
63,538
---------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SMALL CAP EQUITY FUND
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - (continued)
Chemicals-Specialty - 1.1%
600 H.B. Fuller Co. $ 41,037
700 Spartech Corp. 22,152
----------
63,189
-----------------------------------------------------------
Commercial Products - 0.1%
200 VWR Scientific Products Corp.*(a) 7,338
-----------------------------------------------------------
Commercial Services - 2.1%
300 Aaron Rents, Inc. 6,681
100 Black Box Corp.* 5,015
800 Bowne & Co., Inc. 10,400
2,000 Century Business Services, Inc.* 29,000
400 Dendrite International, Inc.* 14,450
100 Factset Research Systems* 5,662
500 Metamor Worldwide, Inc.* 12,031
200 Standard Register Co. 6,150
800 Wackenhut Corp. 23,800
400 World Color Press Co.* 11,000
----------
124,189
-----------------------------------------------------------
Communications & Media Service - 0.5%
400 C F W Communications Co. 9,700
500 Foster Wheeler Corp. 7,062
400 Kaman Corp. 6,275
200 Regal Beloit Corp. 4,725
100 Transaction Network Services* 2,925
----------
30,687
-----------------------------------------------------------
Computer Services/Software - 6.3%
1,200 Acclaim Entertainment, Inc.* 7,650
200 Advent Software, Inc.* 13,404
400 American Management Systems, Inc.* 12,824
300 Apex PC Solutions, Inc.* 6,150
500 Avant Corp.* 6,312
400 AVT Corp.* 15,150
300 Broadvision, Inc.* 22,125
800 CACI International, Inc.* 18,016
300 Clarify, Inc.* 12,375
300 Genesys Telecommunication* 7,506
900 Harbinger Corp.* 11,250
400 IMR Global Corp.* 7,708
800 Informix Corp.* 6,825
300 ISS Group, Inc.* 11,331
100 Jack Henry & Assoc., Inc. 3,925
3,200 Mentor Graphics Corp.* 41,000
400 Mercury Interactive Corp.* 14,150
800 Peregrine Systems, Inc.* 20,550
700 Progress Software* 19,775
200 Proxim, Inc.* 11,604
500 Remedy Corp.* 13,438
200 Sanchez Computer Associates* 6,929
700 Sandisk Corp.* 31,500
1,200 Sybase, Inc.* 13,224
200 Transaction Systems Architects* 7,800
200 TSI International Software, Ltd.* 5,679
200 Visio Corp.* 7,617
300 Visual Networks, Inc.* 9,600
300 Wind River Systems, Inc.* 4,819
----------
370,236
-----------------------------------------------------------
Construction/Environmental Services - 3.6%
1,900 ACX Technologies, Inc.* 30,875
300 Butler Manufacturing Co. 8,381
300 Coachmen Industries, Inc. 6,975
300 Comfort Systems U.S.A.* 5,400
1,600 Dycom Industries, Inc.* 89,600
100 Elcor Corp. 4,369
200 Florida Rock Industrial, Inc. 9,100
300 Granite Construction, Inc. 8,794
200 Lone Star Industries, Inc. 7,513
1,000 M.D.C. Holdings, Inc. 21,520
300 NCI Building Systems, Inc.* 6,413
900 Standard Pacific Corp. 11,644
----------
210,584
-----------------------------------------------------------
Consumer Products - 1.0%
3,900 Herbalife International, Inc. 42,656
600 Jo-Ann Stores, Inc.* 9,000
400 Playtex Products, Inc.* 6,225
----------
57,881
-----------------------------------------------------------
Consumer Staples - 0.3%
400 Church & Dwight, Inc. 17,400
-----------------------------------------------------------
Department Stores - 0.7%
1,100 Shopko Stores, Inc.* 39,875
-----------------------------------------------------------
Diversified Industrial Manufacturing - 0.6%
600 Sauer, Inc. 6,462
1,500 Timken Co. 29,280
----------
35,742
-----------------------------------------------------------
Electronics & Other Electrical Equipment - 2.7%
300 Baldor Electric Co. 5,962
200 Belden, Inc. 4,792
700 BMC Industries, Inc. 7,219
600 C-cube Microsystems, Inc.* 19,025
600 Federal Signal Corp. 12,712
400 Group Maintenance America* 5,175
200 Hughes Supply, Inc. 5,938
600 Hutchinson Technologies* 16,650
200 Micro Systems, Inc.* 6,800
300 Park Electrochemical Corp. 8,625
400 Silicon Valley Group, Inc.* 6,725
200 Technitrol, Inc. 6,454
300 Unitrode Corp.* 8,606
1,800 Vicor Corp.* 38,138
300 Watsco, Inc. 4,913
----------
157,734
-----------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SMALL CAP EQUITY FUND
Statement of Investments (continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - (continued)
Energy Refining & Marketing - 0.4%
600 Berry Petroleum Co. $ 8,362
1,000 Octel Corp.* 12,500
----------
20,862
---------------------------------------------------------------
Engineering - 0.1%
200 Jacobs Engineering Group, Inc.* 7,600
---------------------------------------------------------------
Entertainment & Leisure - 2.1%
600 Action Performance Co., Inc.* 19,800
1,100 Callaway Golf 16,110
3,400 Hollywood Entertainment Co.* 66,512
1,400 Sunterra Corp.* 19,513
----------
121,935
---------------------------------------------------------------
Financial Services - 3.3%
300 Advanta Corp. 5,372
500 Americredit Corp.* 8,000
200 Brown & Brown, Inc.* 7,600
300 Chittenden Corp. 9,375
1,100 Credit Acceptance Corp.* 6,600
300 Everen Capital Corp. 8,944
300 F & M National Corp. 9,956
200 Fair Isaac & Co., Inc. 7,013
300 JSB Financial, Inc. 15,262
315 NBT Bancorp, Inc. 6,458
300 NCO Group, Inc.* 11,406
200 Reliance Bancorp, Inc. 5,525
1,100 Southwest Securities Group, Inc. 78,925
100 White Mountain Insurance* 14,100
----------
194,536
---------------------------------------------------------------
Food & Beverages - 2.5%
400 Agribrands International* 15,825
200 C.P.I. Corp. 6,600
400 Corn Products International 12,174
400 International Multifoods Corp. 9,025
400 Michael Foods, Inc. 9,400
1,700 Pilgrim's Pride Corp. 51,000
300 Ralcorp Holdings, Inc.* 4,819
900 Smithfield Foods, Inc.* 30,112
300 Universal Foods Corp. 6,338
----------
145,293
---------------------------------------------------------------
Forest Products - 0.5%
300 Kimball International, Inc. Class B 5,063
700 Schweitzer-Mauduit International, Inc. 10,500
500 United Stationers, Inc.* 11,000
----------
26,563
---------------------------------------------------------------
Gaming - 0.6%
2,700 Boyd Gaming Corp.* 18,900
600 Dover Downs Entertainment, Inc. 10,612
300 Station Casinos, Inc.* 6,119
----------
35,631
---------------------------------------------------------------
Health & Medical Services - 3.0%
1,200 Ameripath, Inc.* 10,350
600 Amerisource Health Corp.* 15,300
100 Barr Labs, Inc.* 3,987
600 Chemed Corp. 19,950
400 Covance, Inc.* 9,575
200 Diagnostic Products Corp. 5,525
200 Gilead Sciences, Inc.* 10,450
300 Idexx Laboratories, Inc.* 6,993
400 Jones Pharmaceutical, Inc. 15,749
200 Maxxim Medical, Inc.* 4,663
250 Medicis Pharmaceutical Co.* 6,344
1,200 Millennium Pharmaceutical* 43,200
300 Renal Care Group, Inc.* 7,763
300 Roberts Pharmaceutical Co.* 7,275
200 Vertex Pharmaceuticals, Inc.* 4,825
400 Veterinary Centers America, Inc.* 5,425
----------
177,374
---------------------------------------------------------------
Health Suppliers/Services - 2.4%
300 Haemonetics Corp.* 6,018
400 Imation Corporation* 9,925
200 Mettler-Toldeo, Inc.* 4,963
500 Owens & Minor, Inc. 5,500
1,086 Priority Healthcare Corp. Class B* 37,467
1,100 Quest Diagnostics, Inc.* 30,113
300 ResMed, Inc.* 9,956
800 Sola International, Inc.* 15,566
300 Summit Technology, Inc.* 6,606
400 Thermo Bioanalysis* 6,950
150 Xomed Surgical Products, Inc.* 7,303
----------
140,367
---------------------------------------------------------------
Healthcare Management - 0.4%
200 Maximus, Inc.* 5,750
600 OEC Medical Systems, Inc.* 14,700
400 Sierra Health Services, Inc.* 5,775
----------
26,225
---------------------------------------------------------------
Home Builders - 1.6%
400 Champion Enterprises, Inc.* 7,450
600 Kaufman & Broad Home Co. 14,925
600 Lennar Corp. 14,400
400 NVR, Inc.* 20,875
800 Pulte Corp. 18,450
300 Ryland Group, Inc. 8,906
200 U S Home Corp.* 7,100
----------
92,106
---------------------------------------------------------------
Household Durables - 0.6%
4,200 Fedders Corp. 28,087
300 La-Z-Boy, Inc. 6,900
----------
34,987
---------------------------------------------------------------
Industrial Machinery - 3.3%
600 Applied Power, Inc. 16,387
200 Detroit Diesel Corp.* 4,925
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SMALL CAP EQUITY FUND
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - (continued)
Industrial Machinery - (continued)
300 Helix Technology Corp. $ 7,181
200 Idex Corp. 6,574
2,100 Nacco Industries, Inc. 154,350
----------
189,417
-------------------------------------------------------------------
Information Management - 1.5%
700 Concentric Network Corp.* 27,839
1,300 Infousa, Inc. Class B* 11,050
300 Mastech Corp.* 5,588
700 National Computer Systems, Inc. 23,625
200 Profit Recovery Group International, Inc.* 9,467
300 Sykes Enterprises, Inc.* 10,019
----------
87,588
-------------------------------------------------------------------
Insurance Brokers & Other Insurance - 2.5%
500 Arthur J. Gallagher & Co. 24,750
1,000 Capital Re Corp. 16,063
400 E. W. Blanch Holding, Inc. 27,275
340 Fidelity National Financial, Inc. 7,140
600 First American Financial Corp. 10,725
400 Hambrecht & Quist Group* 14,858
1,000 Hilb Rogal Hamilton 22,375
400 Policy Management* 12,008
400 SCPIE Holdings, Inc. 13,050
----------
148,244
-------------------------------------------------------------------
Insurance-Life - 0.7%
200 American Heritage Life Investments 4,900
532 Delphi Financial Group, Inc.* 19,085
1,000 FBL Financial Group, Inc. 19,500
----------
43,485
-------------------------------------------------------------------
Insurance-Property and Casualty - 1.7%
900 Argonaut Group, Inc. 21,600
300 Commerce Group, Inc. (Mass) 7,312
200 Landamerica Financial Group 5,750
1,000 PMA Capital Corp. 20,563
1,500 Stewart Information Services Corp. 31,688
400 Zenith National Insurance Corp. 9,850
----------
96,763
-------------------------------------------------------------------
Investment Brokers & Managers - 1.3%
1,700 Jeffries Group, Inc. 51,034
600 John Nuveen Co. 25,612
----------
76,646
-------------------------------------------------------------------
Machinery - 1.2%
700 Columbus Mckinnon Corp. 16,800
800 Commercial Intertech Corp. 12,750
300 Flowserve Corp. 5,680
700 Kennametal, Inc. 21,714
600 Thomas Industries, Inc. 12,300
----------
69,244
-------------------------------------------------------------------
Media & Communications - 2.0%
1,700 Ascent Entertainment Group* 24,012
500 Big Flower Press Holdings, Inc.* 15,937
300 Gray Communications System I 6,000
300 Journal Register Co.* 6,756
200 Metris Companies, Inc.* 8,150
100 Micromuse, Inc.* 4,988
1,000 Pulitzer, Inc. 48,583
----------
114,426
-------------------------------------------------------------------
Mining - 0.2%
400 Southern Peru Copper Corp. 5,775
150 Stillwater Mining Co.* 4,903
----------
10,678
-------------------------------------------------------------------
Office & Business Equipment - 0.3%
300 Gerber Scientific, Inc. 6,619
400 Xircom, Inc.* 12,025
----------
18,644
-------------------------------------------------------------------
Oil & Gas Services - 1.8%
200 Barrett Resources Corp.* 7,675
400 Cross Timbers Oil Co. 5,950
200 Hanover Compressor* 6,425
900 Helmerich & Payne, Inc. 21,431
500 HS Resources, Inc.* 7,375
900 Marine Drilling Co., Inc.* 12,337
700 Mitchell Energy & Development* 13,533
1,100 Pool Energy Services Co.* 22,344
600 Seitel, Inc.* 9,713
----------
106,783
-------------------------------------------------------------------
Paper & Forest Products - 0.3%
400 Glatfelter PH Co. 5,849
300 Longview Fibre Co. 4,688
100 Potlatch Corp. 4,394
----------
14,931
-------------------------------------------------------------------
Personal Computers and Peripherals - 1.4%
600 Banctec, Inc.* 10,762
700 Bell & Howell Company* 26,469
1,300 CHS Electronics, Inc.* 5,688
500 Computer Network Technology* 10,823
500 Inacom Corp.* 6,313
100 Medical Manager, Inc.* 4,427
500 MTI Technology Corp.* 6,541
100 SCM Microsystems, Inc.* 4,638
300 Security Dynamics Technology* 6,381
----------
82,042
-------------------------------------------------------------------
Pharmaceuticals - 2.0%
900 Alpharma, Inc. 32,006
1,533 Bindley Western Industries, Inc. 35,362
400 Chirex, Inc.* 12,858
200 Duane Reade, Inc.* 6,125
</TABLE>
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SMALL CAP EQUITY FUND
Statement of Investments (continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - (continued)
Pharmaceuticals - (continued)
300 Idec Pharmaceuticals Corp.* $ 23,118
200 Syncor International Corp.* 7,204
----------
116,673
-----------------------------------------------------------------
Pipelines - 1.0%
1,200 Aquarion Co. 41,700
500 Oneok, Inc. 15,875
----------
57,575
-----------------------------------------------------------------
Real Estate - 0.8%
400 Ingles Markets, Inc. 6,100
2,600 Security Capital Group, Inc. Class B* 37,863
----------
43,963
-----------------------------------------------------------------
Recreational Products - 0.3%
800 Russ Berrie and Company, Inc. 19,800
-----------------------------------------------------------------
Restaurants & Hotels - 2.0%
2,000 Aztar Corp.* 18,375
800 Buffets, Inc.* 9,200
200 CEC Entertainment, Inc.* 8,450
500 Crestline Capital Corp.* 8,416
600 Lubys Cafeterias, Inc. 9,000
700 Rare Hospitality International, Inc.* 17,864
800 Ruby Tuesday, Inc. 15,200
850 Sonic Corp.* 27,731
----------
114,236
-----------------------------------------------------------------
Retail - 2.3%
125 99 Cents Only Stores* 6,242
300 Ames Deparment Stores, Inc.* 13,687
1,300 Genesco, Inc.* 18,931
500 Haverty Furniture Cos., Inc. 17,625
800 Heilig Meyers Co. 5,450
500 Michaels Stores, Inc.* 15,313
300 Micro Warehouse, Inc.* 5,363
600 Musicland Stores Corp.* 5,325
600 Petsmart, Inc.* 6,150
1,250 Pier 1 Imports, Inc. 14,063
400 The Buckle, Inc.* 11,500
500 Transworld Entertainment Corp.* 5,625
500 Unifirst Corp. 9,188
----------
134,462
-----------------------------------------------------------------
Semiconductors - 5.9%
1,000 3Dfx Interactive, Inc.* 15,645
1,700 Aavid Thermal Technologies* 38,463
200 Alpha Industries, Inc.* 9,529
200 Anadigics, Inc.* 7,404
300 Artesyn Technologies, Inc.* 6,662
200 Benchmark Electronics, Inc.* 7,187
100 Cree Research, Inc.* 7,696
500 CTS Corp. 35,000
-----------------------------------------------------------------
600 Cypress Semiconductor Corp.* $ 9,900
200 Dallas Semiconductor Corp. 10,100
400 Esterline Technologies Corp.* 5,750
200 Hadco Corp.* 7,954
300 Kemet Corp.* 6,887
1,300 Kent Electronics Corp.* 25,782
700 Lam Research Corp.* 32,681
200 Lattice Semiconductor Corp.* 12,454
400 Methode Electronics, Inc. 9,150
100 Micrel, Inc.* 7,400
200 Oak Industries, Inc.* 8,738
100 Optical Coating Lab, Inc.* 8,365
300 Smart Modular Technologies* 5,213
700 The DII Group, Inc.* 26,133
700 Thermo Optek Corp.* 7,277
400 Transwitch Corp.* 18,958
600 Varian Medical Systems 15,162
----------
345,490
-----------------------------------------------------------------
Specialty Finance & Agencies - 0.2%
1,300 Resource Bancshares Mortgage Group, Inc. 13,325
-----------------------------------------------------------------
Specialty Retail - 1.7%
200 AnnTaylor Stores Corp.* 9,000
900 Handleman Co.* 10,631
300 Insight Enterprises, Inc.* 7,425
400 Lands' End, Inc.* 19,408
900 Officemax, Inc.* 10,818
375 Pacific Sunwear of California, Inc.* 9,141
1,000 Pep Boys Manny-Moe & Jack 21,645
300 Talbots, Inc. 11,438
----------
99,506
-----------------------------------------------------------------
Steel - 2.0%
400 A. M. Castle & Co. 6,800
7,200 Armco, Inc.* 47,700
1,500 Bethlehem Steel Corp.* 11,531
900 LTV Corp. 6,019
3,100 National Steel Corp. Class B 25,963
400 Quanex Corp. 11,400
200 Reliance Steel & Aluminum Corp. 7,800
----------
117,213
-----------------------------------------------------------------
Supermarkets - 0.2%
1,100 Fleming Companies, Inc. 12,787
-----------------------------------------------------------------
Telecommunications - 0.7%
400 ITC Deltacom, Inc.* 11,200
200 IXC Communications, Inc.* 7,863
1,900 Paging Network, Inc.* 9,144
500 U.S. LEC Corp.* 11,250
----------
39,457
-----------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SMALL CAP EQUITY FUND
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - (continued)
Telecommunications Equipment - 1.0%
200 Concord Communications, Inc.* $ 9,000
300 Polycom, Inc.* 11,700
700 Sawtek, Inc.* 32,113
300 Skytel Communications, Inc.* 6,281
----------
59,094
-------------------------------------------------------------
Textiles - 1.9%
300 Brown Shoe Co.* 6,525
200 Footstar, Inc.* 7,438
300 Kellwood Co. 8,138
200 Oxford Industries, Inc. 5,663
600 Phillips-Van Heusen Corporation 5,925
300 Quiksilver, Inc.* 7,819
1,400 Springs Industries, Inc. 61,075
100 Timberland Co.* 6,806
----------
109,389
-------------------------------------------------------------
Tires & Rubber - 0.4%
500 Bandag, Inc. 17,344
300 Mark IV Industries, Inc. 6,338
----------
23,682
-------------------------------------------------------------
Tobacco - 0.1%
300 Universal Corp. 8,531
-------------------------------------------------------------
Transportation/Storage - 0.6%
300 Alexander & Baldwin, Inc. 6,675
500 Midwest Express Holdings* 17,000
400 Overseas Shipholding Group 5,150
100 Xtra Corp. 4,594
----------
33,419
-------------------------------------------------------------
Trucking - 0.9%
1,400 Consolidated Freightways Corp.* 17,981
1,400 Rollins Truck Leasing Corp. 15,575
1,000 Yellow Corp.* 17,750
----------
51,306
-------------------------------------------------------------
Utilities - 3.9%
300 AGL Resources, Inc. 5,530
500 Avista Corp. 8,125
200 Black Hills Corp. 4,624
600 California Water Services Group 15,675
100 Cilcorp, Inc. 6,250
500 Eastern Utilities Assoc. 14,562
200 Empire District Electric Co. 5,213
200 Equitable Resources, Inc. 7,550
400 Hawaiian Electric Industries, Inc. 14,200
200 Idacorp, Inc. 6,300
400 Integrated Electrical Services* 6,450
200 Laclede Gas Co.(a) 4,650
300 Nevada Power Co. 7,500
1,400 Northwestern Corp. 33,863
1,200 Public Service Company of New Mexico 23,850
500 Rochester Gas & Electric 13,281
200 South Jersey Industries 5,663
500 Southwestern Energy Co. 5,281
400 TNP Enterprises, Inc. 14,500
400 UGI Corp. 8,075
100 United Illuminating Co. 4,244
200 United Water Resource, Inc. 4,538
200 WPS Resources Corp. 6,000
----------
225,924
-------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $5,508,383) $5,851,274
-------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $5,508,383)(b) $5,851,274
-------------------------------------------------------------
Federal Income Tax Information:
Gross unrealized gain for
investments in which value exceeds
cost $ 658,182
Gross unrealized loss for
investments in which cost exceeds
value (316,953)
-------------------------------------------------------------
Net unrealized gain $ 341,229
-------------------------------------------------------------
</TABLE>
* Non-income producing security.
(a) There are common stock rights attached to these securities.
(b) The aggregate cost for federal income tax purposes is $5,510,045.
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of total net assets.
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND
Shareholder Letter
Dear Shareholders,
We are pleased to report on the performance of the Goldman Sachs Variable In-
surance Trust Capital Growth Fund. This semiannual report covers the six-
month period ended June 30, 1999.
Performance Review
For the six-month period ended June 30, 1999 the Fund gen-
erated a 13.00% cumulative total return, outperforming the
12.38% cumulative total return of its benchmark, the Stan-
dard & Poor's 500 Index (with dividends reinvested).
The Fund's outperformance was noteworthy, as it occurred
during a period when investors rotated out of larger-cap
growth stocks in favor of smaller-cap issues. The Fund's
selective positions in the technology sector aided perfor-
mance. Overall, the Fund was able to capture solid gains in
the sector, while avoiding some of the volatility that oc-
curred during the period.
Investment Objective
The Fund seeks long-term capital growth, primarily through
investments in a diversified portfolio of companies strate-
gically poised for long-term growth.
Sector Performance
As bottom-up stock pickers, we focus on the real worth of
the business, and to the extent that we find several busi-
nesses in related industries that we believe have long-term
growth potential, the Fund may develop an overweight in a
given sector. One such example is the Fund's position in
the pharmaceutical sector, which we find fundamentally at-
tractive. All of the companies owned in this sector fit the
team's strategy, due to their strong business franchises,
dominant market positions and growth potential.
28
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND
Portfolio Composition
Top 10 Portfolio Holdings as of June 30, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Line of Business Net Assets
------- ---------------- -------------
<S> <C> <C>
Microsoft
Corp. Computer Services/Software 4.2%
AT&T Liberty
Media Corp. Media & Communications 3.2
Time Warner,
Inc. Media & Communications 2.8
AES Corp. Energy Refining & Marketing 2.7
General
Electric Co. Electronics & Other Electrical Equipment 2.6
Bristol-Myers
Squibb Co. Pharmaceuticals 2.4
Pfizer, Inc. Pharmaceuticals 2.1
Wal-Mart
Stores, Inc. Specialty Retail 2.0
International
Business
Machines,
Inc. Enterprise Systems 2.0
Qualcomm,
Inc. Media & Communications 2.0
</TABLE>
* Opinions expressed in this report represent our present
opinions only. References to individual securities should
not be construed as commitments that such securities will
be retained in the Fund. From time to time, the Fund may
change the individual securities it holds, the number or
types of securities held and the markets in which it in-
vests. References to individual securities do not consti-
tute recommendations to the investor to buy, hold or sell
such securities. In addition, references to past perfor-
mance of the Fund do not indicate future returns, which are
not guaranteed and will vary. Furthermore, the value of
shares of the Fund may fall as well as rise.
Outlook
While we neither make nor rely on economic forecasts to
make investment decisions, we are generally bullish on the
U.S. economy. Over the last decade, global communication
has increased, resulting from significant technological ad-
vances as well as a generally peaceful world political en-
vironment. We believe that this trend, combined with
favorable demographic trends, will benefit U.S. companies
over the long term. More fundamentally, though, the team
continues to focus on the core business characteristics
which provide a foundation for long-term growth, such as
strength of franchise, quality of management, and free cash
flow, along with favorable demographic trends. We believe
that the enduring competitive advantage of the companies we
own--based on the criteria mentioned above--will withstand
even an uncertain market environment.
We thank you for your investment and look forward to your
continued confidence.
Goldman Sachs Growth Equity Management Team
July 29, 1999
29
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND
Statement of Investments
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - 98.5%
Advertising & Marketing - 1.4%
2,400 Valassis Communications, Inc.* $ 87,900
-----------------------------------------------------------------
Banks - 6.3%
900 BankAmerica Corp. 65,981
1,600 Bank One Corp. 95,300
1,725 Citigroup, Inc. 81,937
1,500 State Street Boston Corp. 128,063
800 Wells Fargo Co. 34,200
----------
405,481
-----------------------------------------------------------------
Chemicals-Commodity - 0.7%
700 Du Pont (E.I.) de Nemours & Co. 47,819
-----------------------------------------------------------------
Chemicals-Specialty - 0.6%
300 Air Products & Chemicals, Inc. 12,075
300 Minnesota Mining and Manufacturing Co. 26,081
----------
38,156
-----------------------------------------------------------------
Commercial Services - 1.3%
1,000 Ecolab, Inc. 43,625
800 Galileo International, Inc. 42,750
----------
86,375
-----------------------------------------------------------------
Computer Services/Software - 7.4%
700 Automatic Data Processing, Inc. 30,800
400 Checkfree Holdings Corp.* 11,025
2,200 First Data Corp. 107,662
3,000 Microsoft Corp.* 270,563
1,000 Sterling Commerce, Inc.* 36,500
200 Verisign, Inc.* 17,250
----------
473,800
-----------------------------------------------------------------
Construction/Environmental Services - 1.4%
1,700 Waste Management, Inc. 91,375
-----------------------------------------------------------------
Consumer Staples - 4.8%
1,700 Avon Products, Inc. 94,350
400 Clorox Co. 42,725
1,100 Colgate Palmolive Co. 108,625
700 Procter & Gamble Co. 62,475
----------
308,175
-----------------------------------------------------------------
Electronics & Other Electrical Equipment - 2.6%
1,500 General Electric Co. 169,500
-----------------------------------------------------------------
Energy Refining & Marketing - 2.7%
3,000 AES Corp.* 174,375
-----------------------------------------------------------------
Enterprise Systems - 3.7%
400 EMC Corp.* 22,000
1,000 International Business Machines, Inc. 129,250
1,200 Sun Microsystems, Inc.* 82,650
----------
233,900
-----------------------------------------------------------------
Food & Beverages - 5.2%
1,400 Coca Cola Co. 87,500
1,200 Nabisco Holdings Corp. 51,900
1,800 Pepsico, Inc. 69,638
2,500 Ralston Purina Co. 76,094
500 William Wrigley Jr. Co. 45,000
----------
330,132
-----------------------------------------------------------------
Funeral Services - 1.2%
4,000 Service Corp. International 77,000
-----------------------------------------------------------------
Health Suppliers/Services - 1.1%
700 Johnson & Johnson 68,600
-----------------------------------------------------------------
Information Management - 0.7%
817 At Home Corp.* 44,054
-----------------------------------------------------------------
Insurance Brokers & Other Insurance - 0.4%
400 AMBAC Financial Group, Inc. 22,850
-----------------------------------------------------------------
Insurance-Life - 0.8%
400 Hartford Life, Inc. 21,050
600 Nationwide Financial Services, Inc. 27,150
----------
48,200
-----------------------------------------------------------------
Insurance-Property and Casualty - 1.1%
598 American International Group, Inc. 70,003
-----------------------------------------------------------------
Integrated Oil - 2.8%
200 Atlantic Richfield Co. 16,712
600 Exxon Corp. 46,275
300 Mobil Corp. 29,700
400 Royal Dutch Petroleum Co. ADR 24,100
800 Texaco, Inc. 50,000
300 Unocal Corp. 11,888
----------
178,675
----------------------------------------------- --------------
Media & Communications - 20.3%
2,600 AH Belo Corp. 51,187
5,500 AT&T Liberty Media Corp.* 202,125
800 Cablevision Systems Corp., Class A* 56,000
2,400 CBS, Inc. 104,250
1,100 Central Newspapers, Inc. 41,387
1,100 Chancellor Media Corp.* 60,637
578 Clear Channel Communications* 39,846
1,500 Comcast Corp. 57,656
200 Echostar Communications* 30,687
600 Gannett Co. 42,825
2,400 Infinity Broadcasting Corp.* 71,400
1,500 MediaOne Group, Inc.* 111,563
1,000 New York Times Co. 36,813
900 Qualcomm, Inc.* 129,150
2,400 Time Warner, Inc. 176,400
300 Tribune Co. 26,138
800 Walt Disney Co. 24,650
2,200 Ziff Davis, Inc.* 33,963
----------
1,296,677
-----------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND
<TABLE>
<CAPTION>
Shares Description Value
<S> <C> <C>
Common Stocks - (continued)
Oil & Gas Services - 1.5%
1,500 Schlumberger, Ltd. $ 95,531
----------------------------------------------------------------
Pharmaceuticals - 10.1%
1,800 American Home Products Corp. 103,500
2,200 Bristol-Myers Squibb Co. 154,962
600 Eli Lilly & Co. 42,975
900 Merck & Co. 66,600
1,200 Pfizer, Inc. 131,700
1,100 Schering-Plough Corp. 58,300
1,300 Warner-Lambert Co. 90,188
----------
648,225
----------------------------------------------------------------
Recreational Products - 0.4%
900 Hasbro, Inc. 25,144
----------------------------------------------------------------
Restaurants & Hotels - 1.6%
1,300 Marriott International, Inc. 48,587
700 McDonalds Corp. 28,919
800 Starwood Hotels & Resorts Worldwide 24,450
----------
101,956
----------------------------------------------------------------
Retail - 2.6%
800 Home Depot, Inc. 51,550
2,400 Tandy Corp. 117,300
----------
168,850
----------------------------------------------------------------
Semiconductors - 1.5%
1,600 Intel Corp. 95,200
----------------------------------------------------------------
Specialty Finance & Agencies - 5.0%
600 C.I.T. Group, Inc. 17,325
1,800 Federal Home Loan Mortgage Corp. 104,400
1,400 Federal National Mortgage Association 95,725
3,300 MBNA Corp. 101,063
----------
318,513
----------------------------------------------------------------
Specialty Retail - 2.4%
500 CVS Corp. 25,375
2,700 Wal-Mart Stores, Inc. 130,275
----------
155,650
----------------------------------------------------------------
Supermarkets - 1.1%
2,500 Walgreen Co. 73,438
----------------------------------------------------------------
Telecommunications - 2.3%
1,800 Crown Caste International Corp.* 37,462
1,300 MCI Worldcom, Inc.* 111,881
----------
149,343
----------------------------------------------------------------
Telecommunications Equipment - 3.0%
2,000 Cisco Systems, Inc.* 129,000
900 Lucent Technologies, Inc. 60,694
----------
189,694
----------------------------------------------------------------
Tobacco - 0.5%
800 Philip Morris Companies, Inc. 32,150
----------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $5,219,693) $6,306,741
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
<C> <S> <C> <C>
Repurchase Agreement - 1.6%
Joint Repurchase Agreement Account
II(a)
$100,000 5.13% 07/01/99 $ 100,000
------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $100,000) $ 100,000
------------------------------------------
TOTAL INVESTMENTS
(Cost $5,319,693)(b) $6,406,741
------------------------------------------
Federal Income Tax Informa-
tion:
Gross unrealized gain for
investments in which value
exceeds cost $1,211,719
Gross unrealized loss for
investments in which cost
exceeds value (126,494)
------------------------------------------
Net unrealized gain $1,085,225
------------------------------------------
</TABLE>
* Non-income producing security.
(a) The repurchase agreement is fully collateralized by Federal Obligations.
(b) The aggregate cost for federal income tax purposes is $5,321,516.
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of total net assets.
The accompanying notes are an integral part of these financial statements.
31
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND
Shareholder Letter
Dear Shareholders,
We are pleased to report on the performance of the Goldman Sachs Variable In-
surance Trust Mid Cap Value Fund. This semiannual report covers the six-month
period ended June 30, 1999.
Performance Review
For the six-month period ended June 30, 1999 the Fund gen-
erated a 16.69% cumulative return and significantly
outperformed the 10.33% cumulative return of its benchmark,
the Russell Midcap Index.
During the first quarter, mid-cap stocks reached a historic
low in terms of both performance and valuation relative to
growth and large-cap stocks. Believing that the extreme
pressure upon these stocks was unsustainable, we maintained
conviction in the unrecognized fundamental strength of our
existing mid cap value holdings. And, in some cases, in
typical value investor fashion, we used the opportunity to
both increase and initiate positions at attractive prices.
During the second quarter, we witnessed a broadening of
market leadership. There were many drivers behind this
trend. Monetary easing by central banks around the globe
mitigated liquidity concerns surrounding the 1998 financial
crisis and restored investor confidence in both domestic
and global growth. Signs of global economic strength in-
spired investors to venture towards discounted segments of
the market, such as economically-sensitive industrials,
value stocks and smaller cap names. Additionally, the over-
all market closed the second quarter on a positive note in
anticipation of strong second quarter earnings announce-
ments. As a result, we enjoyed double-digit returns from
the majority of our holdings. During the second quarter,
the Fund's 19.6% return substantially outperformed the
10.9% return of its benchmark. Year-to-date, the Fund
outperformed its benchmark by 636 basis points.
Portfolio Composition
Top 10 Portfolio Holdings as of June 30, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Line of Business Net Assets
------- ---------------- -------------
<S> <C> <C>
UST, Inc. Tobacco 2.7%
Pacific Century
Financial Corp. Banks 2.5
Ucar
International,
Inc. Steel 2.5
Loews Corp. Insurance--Property and Casualty 2.4
Tenet Healthcare
Corp. Healthcare Management 2.3
Waddell & Reed
Financial, Inc.
Class B Investment Brokers & Managers 2.3
Avnet, Inc. Semiconductors 2.3
Federal-Mogul
Corp. Auto Suppliers 2.2
Northrop Grumman
Corp. Aerospace/Defense 2.2
CMP Group, Inc. Utilities 2.0
</TABLE>
32
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND
* Opinions expressed in this report represent our present
opinions only. References to individual securities should
not be construed as commitments that such securities will
be retained in the Fund. From time to time, the Fund may
change the individual securities it holds, the number or
types of securities held and the markets in which it in-
vests. References to individual securities do not consti-
tute recommendations to the investor to buy, hold or sell
such securities. In addition, references to past perfor-
mance of the Fund do not indicate future returns, which are
not guaranteed and will vary. Furthermore, the value of
shares of the Fund may fall as well as rise.
Name Change
Effective May 1, 1999, the Variable Insurance Trust Mid Cap
Equity Fund was renamed the Mid Cap Value Fund. The Fund
has always and will continue to be managed according to a
disciplined value investment style. The name of the Fund
was changed merely to better reflect its investment guide-
lines.
Outlook
In recent months, we were reassured to see the Fund's value
strategy at work after a period of sub-par results. The
second quarter experience reflects the premise behind why
value can deliver superior returns over the long term. As
in the past, we have seen investors overreact to uncer-
tainty or temporary disappointments and drive stock prices
and valuations to unsustainable low levels. When stocks are
priced according to such low expectations, they are more
likely to possess limited downside with potentially signif-
icant upside, and these are the investment opportunities
for which we search. During such times, even modest im-
provements in market conditions or fundamentals can prompt
sharp rebounds, as we saw with many of our holdings. We
will continue to, with our disciplined first-hand fundamen-
tal research process, seek out the neglected and misunder-
stood companies that we believe possess the potential to
deliver superior long-term returns.
We remain enthusiastic about the long-term value offered by
mid-cap companies and our portfolio in particular. Despite
a strong quarter, we believe that significant upside poten-
tial remains in several of our holdings in the Fund. The
Goldman Sachs Variable Insurance Trust Mid Cap Value Fund
remains significantly discounted relative to both its uni-
verse and to large cap stocks (see below).
<TABLE>
<CAPTION>
Fund Russell Midcap S&P 500
---- -------------- -------
<S> <C> <C> <C>
P/E Trailing 12 Months 16.7x 22.8x 30.1x
P/E 1 Year Forecast 14.2x 20.7x 26.0x
Price/Book Ratio 1.8x 3.1x 5.0x
</TABLE>
We thank you for your investment and look forward to your
continued confidence.
Goldman Sachs Value Portfolio Management Team
July 29, 1999
33
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND
Statement of Investments
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<S> <C> <C>
Common Stocks - 82.4%
Aerospace/Defense - 2.2%
4,900 Northrop Grumman Corp. $ 324,931
----------------------------------------------------------------------
Airfreight, Truck & Other - 1.2%
2,900 CNF Transportation, Inc. 111,287
2,700 Ryder Systems, Inc. 70,200
-----------
181,487
----------------------------------------------------------------------
Auto Suppliers - 4.8%
700 Dana Corp. 32,244
6,400 Federal-Mogul Corp. 332,800
4,500 Lear Corp.* 223,875
2,100 TRW, Inc. 115,238
-----------
704,157
----------------------------------------------------------------------
Banks - 5.2%
17,100 Pacific Century Financial Corp. 368,719
3,000 Republic of New York Corp. 204,563
11,000 Sovereign Bancorp, Inc. 133,375
1,600 Unionbancal Corp.* 57,800
-----------
764,457
----------------------------------------------------------------------
Commercial Products - 1.7%
8,200 Agco Corp. 92,762
7,800 Miller Herman, Inc. 163,800
-----------
256,562
----------------------------------------------------------------------
Construction/Environmental Services - 3.7%
12,100 Allied Waste Industries, Inc.* 238,975
4,400 Browning-Ferris Industries, Inc. 189,200
4,600 Republic Services, Inc.* 113,850
-----------
542,025
----------------------------------------------------------------------
Department Stores - 2.3%
3,900 Dillards, Inc. 136,987
4,000 Federated Department Stores, Inc.* 211,750
-----------
348,737
----------------------------------------------------------------------
Enterprise Systems - 0.2%
500 NCR Corp.* 24,406
----------------------------------------------------------------------
Food & Beverages - 3.2%
11,900 Archer Daniels Midland Co. 183,706
13,700 Fleming Companies, Inc. 159,262
7,100 Nabisco Group Holdings* 138,894
-----------
481,862
----------------------------------------------------------------------
Forest Products - 0.5%
3,000 Georgia-Pacific Corp. (Timber Group) 75,750
----------------------------------------------------------------------
Healthcare Management - 5.0%
2,600 Aetna, Inc. 232,537
13,900 Health Management Association, Inc.* 156,375
18,700 Tenet Healthcare Corp.* 347,119
-----------
736,031
Hotels & Restaurants - 2.0%
13,300 Healthsouth Corp.* 198,669
10,600 Quest Diagnostics, Inc.* 290,175
17,700 Total Renal Care Holdings* 275,456
-----------
764,300
----------------------------------------------------------------------
Hotels & Restaurants - 2.0%
2,300 Promus Hotel Corp.* 71,300
7,500 Starwood Hotels & Resorts Worldwide 229,219
-----------
300,519
----------------------------------------------------------------------
Household Durables - 0.6%
2,600 Stanley Works 83,688
----------------------------------------------------------------------
Industrial Machinery - 1.2%
10,800 Unova, Inc.* 171,450
----------------------------------------------------------------------
Insurance Brokers & Other Insurance - 3.6%
9,000 Old Republic International Corp. 155,813
5,200 Radian Group* 253,825
2,300 XL Capital, Ltd.* 129,950
-----------
539,588
----------------------------------------------------------------------
Insurance-Life - 1.2%
2,700 Reliastar Financial Corp. 118,125
1,800 Torchmark Corp. 61,425
-----------
179,550
----------------------------------------------------------------------
Insurance-Property and Casualty - 8.2%
1,300 Allmerica Financial Corp. 79,056
7,000 CNA Financial Corp.* 282,187
7,100 Everest Reinsurance Holdings, Inc. 231,637
3,900 Horace Mann Educators Co. 106,031
4,500 Loews Corp. 356,063
4,600 Mercury General Corp. 156,400
-----------
1,211,374
----------------------------------------------------------------------
Integrated Oil - 0.6%
4,200 Occidental Petroleum Corp. 88,725
----------------------------------------------------------------------
Investment Brokers & Managers - 2.3%
12,593 Waddell & Reed Financial, Inc., Class B* 340,011
----------------------------------------------------------------------
Logistics/Rail - 1.2%
7,600 Canadian Pacific, Ltd. 180,975
----------------------------------------------------------------------
Media & Communications - 3.0%
7,400 AH Belo Corp. 145,687
3,200 Dun & Bradstreet Corp. 113,400
3,300 New York Times Co. 121,481
1,700 RR Donnelley & Sons Co. 63,006
-----------
443,574
----------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
34
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - (continued)
Oil Refining & Marketing - 1.9%
8,300 Tosco Corp. $ 215,281
2,200 USX-Marathon Group, Inc. 71,638
-----------
286,919
--------------------------------------------------------------------
Personal Computers and Peripherals - 2.4%
14,000 Inacom Corp.* 176,750
7,400 Quantum Corp.* 178,525
-----------
355,275
--------------------------------------------------------------------
Pharmaceuticals - 0.4%
7,300 Perrigo Co.* 55,663
--------------------------------------------------------------------
Semiconductors - 4.1%
7,300 Avnet, Inc. 339,450
13,063 Vishay Intertechnology, Inc.* 274,313
-----------
613,763
--------------------------------------------------------------------
Specialty Finance & Agencies - 0.1%
200 Finova Group, Inc. 10,525
--------------------------------------------------------------------
Specialty Retail - 2.7%
4,200 Autozone, Inc.* 126,525
1,200 Ross Stores, Inc. 60,450
10,500 Toys R US, Inc.* 217,219
-----------
404,194
--------------------------------------------------------------------
Steel - 3.4%
12,900 Ispat International NV 142,706
14,400 Ucar International, Inc.* 363,600
-----------
506,306
--------------------------------------------------------------------
Textiles - 2.7%
17,500 Fruit of The Loom, Inc.* 170,625
12,400 Reebok International, Ltd.* 230,950
-----------
401,575
--------------------------------------------------------------------
Tobacco - 3.6%
3,933 RJ Reynolds Tobacco Holdings* 123,900
13,900 UST, Inc. 406,575
-----------
530,475
--------------------------------------------------------------------
Utilities - 2.0%
11,300 CMP Group, Inc. 295,919
--------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $11,151,727) $12,204,773
--------------------------------------------------------------------
Other Investment - 3.8%
7,186 Standard & Poor's Depositary Receipt * $ 563,652
--------------------------------------------------------------------
TOTAL OTHER INVESTMENT
(Cost $521,598) $ 563,652
--------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
<S> <C> <C> <C>
Repurchase Agreement - 16.2%
Joint Repurchase Agreement Account II(a)
$2,400,000 5.133% 07/01/99 $ 2,400,000
--------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $2,400,000) $ 2,400,000
--------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $14,073,325)(b) $15,168,425
--------------------------------------------------------------------------------------------------
Federal Income Tax Information:
Gross unrealized gain for investments in which
value exceeds cost
$ 1,336,004
Gross unrealized loss for investments in which
cost exceeds value
(282,736)
--------------------------------------------------------------------------------------------------
Net unrealized gain $ 1,053,268
--------------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
(a) The repurchase agreement is fully collateralized by Federal Obligations.
(b) The aggregate cost for federal income tax purposes is $14,115,157.
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of total net assets.
The accompanying notes are an integral part of these financial statements.
35
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE INTERNATIONAL EQUITY FUND
Shareholder Letter
Dear Shareholders,
We are pleased to report on the performance of the Goldman Sachs Variable In-
surance Trust CORE International Equity Fund. This semiannual report covers
the period from April 1, 1999, when the Fund began operations, through June
30, 1999.
Performance Review
From April 1, 1999 through June 30, 1999, the Fund gener-
ated a 4.60% cumulative total return. This compares favor-
ably with the 2.60% cumulative total return of its
benchmark, the Morgan Stanley Capital International Europe,
Australia and Far East ("Morgan Stanley EAFE") Index ("MSCI
EAFE Index").
The CORE strategy is a well-defined investment process that
has historically provided consistent, risk-managed perfor-
mance, with a reduced risk that returns will be very dif-
ferent from those of a specific benchmark over time.
Additionally, the diversification of our models typically
adds value, because when one theme doesn't work, others
usually do. For example, when momentum stocks underperform,
value stocks typically advance more than average.
The Fund's diversification was a key benefit during the re-
porting period, as we experienced dramatic shifts in in-
vestor sentiment. In Europe, the market rotated from
traditional growth oriented stocks in favor of value
stocks. In Japan, our outlook turned more positive, due to
value factors and improved market performance. The Fund was
rewarded for its underweighted stance in the United King-
dom, as our indicators pointed to weak value and momentum
measures.
Investment Objective
The Fund seeks long-term capital growth, primarily through
a broadly diversified portfolio of equity securities of
large-cap companies that are organized outside the United
States, or whose securities are principally traded outside
the U.S.
The portfolio employs a disciplined approach that combines
fundamental investment research provided by Goldman, Sachs
& Co.'s Global Investment Research Department and consensus
opinions, with quantitative analysis generated by the Asset
Management Division's proprietary model. This quantitative
system evaluates each stock using many different criteria,
including valuation measures, growth expectations, earnings
momentum and risk profile. It also objectively analyses the
impact of current economic conditions on different types of
stocks to determine where the emphasis should be placed.
While maintaining a profile close to that of the benchmark,
those stocks ranked highly by both the quantitative model
and the Goldman Sachs Global Investment Research Department
and consensus opinion are selected for the portfolio.
36
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE INTERNATIONAL EQUITY FUND
Portfolio Composition
Top 10 Portfolio Holdings as of June 30, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Country Line of Business Net Assets
------- ------- ---------------- -------------
<S> <C> <C> <C>
Telefonica SA Spain Utilities 2.4%
Bank of
Tokyo-
Mitsubishi Japan Banks 1.9
Nokia OYJ Finland Telecommunications Equipment 1.9
Toyota Motor Japan Automobiles &
Corp. Automobile Parts 1.8
Daimler Germany Automobiles &
Chrysler AG Automobile Parts 1.7
British
Telecom Britain Utilities 1.7
Nippon
Telegraph &
Telephone
Corp. Japan Utilities 1.6
BP Amoco Britain Oil & Gas 1.5
Eni Group SPA Italy Oil & Gas 1.2
Deutsche
Telekom AG Germany Utilities 1.1
</TABLE>
* Opinions expressed in this report represent our present
opinions only. References to individual securities should
not be construed as commitments that such securities will
be retained in the Fund. From time to time, the Fund may
change the individual securities it holds, the number or
types of securities held and the markets in which it in-
vests. References to individual securities do not consti-
tute recommendations to the investor to buy, hold or sell
such securities. In addition, references to past perfor-
mance of the Fund do not indicate future returns, which are
not guaranteed and will vary. Furthermore, the value of
shares of the Fund may fall as well as rise.
Outlook
As always, the Fund remains substantially invested in
stocks. Our sector and capitalization weightings are
targeted to stay relatively close to that of the MSCI EAFE
index, as are exposures to other risk factors (such as div-
idend yield). Based on our investment strategy, we are em-
phasizing a diversified portfolio of lower P/E stocks with
solid momentum characteristics, in order to identify stocks
with strong growth potential.
We thank you for your investment and look forward to your
continued confidence.
Goldman Sachs Quantitative Equity Management Team
July 29, 1999
37
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE CORE INTERNATIONAL EQUITY FUND
Statement of Investments
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<S> <C> <C>
Common Stocks - 98.3%
Belgium - 0.8%
300 Credit Communal De Belg (Dexia) (Financial Services) $ 44,656
50 Electrabel (Utilities) 16,133
600 Fortis Belgium (Insurance) 18,834
50 Tractebel Investment International (Utilities) 7,010
-----------
86,633
----------------------------------------------------------------------------
Britain - 15.4%
900 Abbey National (Financial Services) 16,903
1,200 Allied Domecq PLC (Food & Beverages) 11,538
2,700 Allied Zurich (Insurance) 33,942
2,300 Amec (Building Materials & Construction) 9,372
1,550 Arjo Wiggins Appleton PLC (Paper & Forest Products) 5,387
800 Barclays Bank (Banks) 23,265
5,400 BG (Oil & Gas) 32,941
7,150 Billiton PLC (Mining) 25,020
8,600 BP Amoco (Oil & Gas) 153,993
800 British Aerospace PLC (Aerospace/Defense) 5,208
2,300 British American Tobacco (Tobacco) 21,698
1,700 British Energy PLC (Utilities) 14,603
2,600 British Steel (Steel) 6,731
10,450 British Telecom (Utilities) 174,931
3,650 Cable & Wireless (Utilities) 46,544
500 Daily Mail & General Trust (Media & Communications) 27,545
5,500 FKI (Media & Communications) 17,084
900 General Electric Co. (Electronics) 9,143
7,450 George Wimpey (Building Materials & Construction) 17,732
3,450 Glaxo Wellcome (Pharmaceuticals) 95,873
1,700 Halifax Group (Banks) 20,258
1,150 Hanson PLC (Building Materials & Construction) 10,332
2,750 HSBC Holdings PLC (Banks) 97,227
1,700 HSBC Holdings PLC (Banks) 60,238
750 Imperial Tobacco (Tobacco) 8,222
1,750 J. Sainsbury PLC (Supermarkets) 11,034
1,400 Kingfisher Group (Retail) 16,337
2,150 Lex Service PLC (Retail) 19,758
2,550 Lonrho (Mining) 23,715
1,150 National Power (Utilities) 8,356
800 National Westminster Bank (Banks) 16,960
6,850 Norwich Union PLC (Insurance) 46,375
3,349 P & O Finance BV (Financial Services) 50,228
550 Pearson (Printing) 11,175
950 Railtrack Group PLC (Transportation/Storage) 19,422
11,800 Rolls Royce (Aerospace/Defense) 49,847
3,300 Royal Bank of Scotland Group (Banks) 67,621
5,050 Safeway (Retail) 20,139
9,750 Smith & Nephew (Health & Medical Services) 29,507
2,250 Smith Group (Business Services) 21,616
5,250 Smithkline Beecham (Health & Medical Services) 68,271
13,500 Tarmac (Building Materials & Construction) 25,322
800 Tate & Lyle (Diversified Holding Companies) 4,981
1,050 Thames Water (Utilities) 16,650
1,250 Unilever (Food & Beverages) 11,093
351 Unilever NV (Consumer Goods) 23,626
1,550 United Utilities (Business Services) 19,057
2,800 Williams PLC (Electronics) 18,493
1,400 Wolseley (Building Materials & Construction) 10,548
1,618 Zeneca Group (Health & Medical Services) 62,561
-----------
1,618,422
----------------------------------------------------------------------------
Finland - 2.6%
2,400 Finnair (Airlines) 12,444
3,700 Merita PLC (Banks) 21,016
2,300 Metsa Serla OY (Paper & Forest Products) 19,537
2,250 Nokia (AB) OY (Telecommunications Equipment) 197,150
950 UPM Kymmene OY (Paper & Forest Products) 27,225
-----------
277,372
----------------------------------------------------------------------------
France - 8.2%
150 Alcatel Alsthom (Cie Gen El) (Computers/Office) 21,107
250 Assurances Generales de France (Insurance) 12,035
850 Axa UAP (Insurance) 103,657
900 Banque National de Paris (Banks) 74,963
250 Carrefour Supermarche (Retail) 36,724
300 Casino Guich Perr (Retail) 26,287
50 Danone (Food & Beverages) 12,886
350 Elf Aquitaine (Oil & Gas) 51,342
18,700 Eurotunnel* (Transportation/Storage) 27,566
1,200 France Telecom (Utilities) 90,612
250 GTM Entrepose (Building Materials & Construction) 26,802
300 Lagardere S.C.A. (Diversified Holdings Companies) 11,164
50 L'Oreal (Health/Personal Care) 33,786
250 Pechiney (Diversified Industrial Manufacturing) 10,741
200 Pernod Ricard (Financial Services) 13,401
150 Pin Printemps Redo (Retail) 25,730
850 Rhone-Poulenc SA (Chemical Products) 38,825
</TABLE>
The accompanying notes are an integral part of these financial statements.
38
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE CORE INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
Shares Description Value
<S> <C> <C>
Common Stocks - (continued)
France - (continued)
50 Saint Gobain (Building Materials & Construction) $ 7,963
100 Seita (Tobacco) 5,773
300 Societe Generale (Financial Services) 52,852
500 Suez Lyonnaise Eaux (Business Services) 90,148
1,000 Vivendi (Utilities) 80,973
-----------
855,337
------------------------------------------------------------------------------
Germany - 9.1%
250 Allianz AG Holdings (Insurance) 69,325
1,850 BASF AG (Chemical Products) 81,718
800 Bayer AG (Chemical Products) 33,317
200 Bayerische Vereinsbank (Financial Services) 12,989
1,250 Commerzbank AG (Banks) 37,948
2,100 Daimler Chrysler AG (Automobile & Automobile Parts) 181,842
2,800 Deutsche Telekom AG (Utilities) 117,476
650 Fag Kugelfischer (Industrial Machinery) 6,600
800 Hoechst AG (Pharmaceuticals) 36,203
1,950 Lufthansa AG (Airlines) 35,339
1,450 Man AG (Computer/Office) 49,476
300 Mannesmann AG (Utilities) 44,749
1,350 Merck KGAA (Pharmaceuticals) 43,893
200 Metro AG (Retail) 12,411
1,250 Siemens AG (Electronics) 96,385
600 Thyssen Krupp AG* (Building Materials &
Construction) 13,193
1,400 Veba AG (Utilities) 82,262
50 Volkswagen AG (Automobiles & Automobile Parts) 3,201
-----------
958,327
------------------------------------------------------------------------------
Hong Kong - 4.2%
27,000 Amoy Properties (Real Estate) 25,404
8,000 Bank of East Asia (Banks) 20,261
1,000 Cheung Kong Holdings, Ltd. (Real Estate) 8,893
6,000 CLP Holdings, Ltd. (Utilities) 29,155
15,000 First Pacific Co. (Financial Services) 12,760
10,000 Great Eagle Holdings (Real Estate) 17,658
5,000 Hang Seng Bank (Banks) 55,906
3,000 Hong Kong & China Gas Co. (Utilities) 4,350
26,800 Hong Kong Telecommunications, Ltd. (Utilities) 69,603
8,000 Hutchison Whampoa, Ltd. (Diversified Holding Companies) 72,436
2,000 Johnson Electronics Holdings (Electronics) 8,249
1,000 Kerry Properties (Real Estate) 1,321
6,000 Shun Tak Holdings (Transportation/Storage) 1,605
16,000 Sino Land Co. (Real Estate) 9,177
5,000 Sun Hung Kai Properties Co., Ltd. (Real Estate) 45,595
7,000 Swire Pacific, Ltd. (Diversified Holding Companies) 34,645
6,000 Wharf Holdings (Diversified Holding Companies) 18,715
-----------
435,733
------------------------------------------------------------------------------
Italy - 5.9%
2,350 Assicurazioni Generali SPA (Insurance) 81,396
8,850 Banca Commerciale Italiana (Banks) 64,591
2,950 Banca Pop Di Milano (Banks) 22,777
17,450 Cir Compagnie Inds (Consumer Goods) 23,205
21,350 ENI Group SPA (Oil $ Gas) 127,430
1,650 Eq Mediaset SPA (Media & Communications) 14,662
450 Istit Fin Ind (Conglomerates) 6,378
900 Italcementi (Building Materials & Construction) 11,412
4,150 Magneti Marelli (Industrial Machinery) 5,497
21,100 Montedison SPA (Diversified Industrial Manufacturing) 34,323
10,850 Olivetti* (Telecommunications Equipment) 26,060
1,500 Rolo Banca 1473 (Banks) 33,631
2,650 San Paolo IMI (Financial Services) 36,059
2,500 Sirti SPA (Telecommunications Equipment) 12,061
5,580 Tecnost International SPA (Electronics) 13,748
3,850 Telecom Italia Mobile (Di Risp Shares) (Utilities) 14,169
13,200 Telecom Italia Mobile SPA (Utilities) 78,786
2,700 Unicredito Italiano SPA (Financial Services) 11,857
-----------
------------------------------------------------------------------------------
Japan - 26.7%
800 Acom Co. (Financial Services) 69,108
2,000 Alps Electric Co. (Electronics) 46,871
14,000 Bank of Tokyo Mitsubishi (Banks) 199,405
1,000 Canon, Inc. (Electronics) 28,767
1,000 Canon Sales Company, Inc. (Electronics) 15,715
1 Central Japan Railway (Transportation/Storage) 5,153
2,000 Chiba Bank (Banks) 7,390
900 Chugoku Electric Power Co. (Utilities) 13,689
2,000 Chuo Trust & Bank (Banks) 12,102
2,000 Cosmo Oil Co. (Oil & Gas) 3,670
2,000 Dai Nippon Printing Co., Ltd. (Printing) 31,991
</TABLE>
The accompanying notes are an integral part of these financial statements.
39
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE CORE INTERNATIONAL EQUITY FUND
Statement of Investments (continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - (continued)
Japan - (continued)
4,000 Daicel Chemical Industries (Chemical Products) $ 14,714
2,000 Daiichi Pharmaceutical Co. (Pharmaceuticals) 31,049
1,000 Dai Nippon Pharmaceuticals (Pharmaceuticals) 5,621
1,500 Daito Trust Construction (Building Materials &
Construction) 16,740
1,000 Daiwa Securities Group, Inc. (Financial Services) 6,613
7 DDI Corp. (Utilities) 43,573
7,000 Fuji Heavy Industries, Ltd. (Automobiles &
Automobile Parts) 54,046
2,000 Fujitsu, Ltd. (Computers/Office) 40,258
11,000 Hitachi (Electronics) 103,207
1,000 Hitachi Chemical (Automobiles and Automobile Parts) 11,697
1,000 Honda Motor Co., Ltd. (Automobiles & Automobile
Parts) 42,407
3,000 Ind Bank Japan (Banks) 23,808
16,000 Ishikawajima Har (Industrial Machinery) 29,627
5,000 Izumiya Co. (Retail) 44,722
2,000 Japan Energy Corp. (Utilities) 2,348
1,000 Jusco Co. (Consumer Goods) 18,186
600 Kokusai Den Kdd (Utilities) 43,102
7,000 Konica Corp. (Consumer Goods) 28,875
1,100 Kyocera Corp. (Electronics) 64,561
7,000 Kyowa Hakko Kogyo (Health & Medical Services) 40,101
1,500 Kyushu Electric Power Co., Inc. (Utilities) 23,064
3,000 Lion Corp. (Health & Medical Services) 12,400
3,000 Marubeni Corp. (Wholesale Trade) 6,274
3,000 Matsushita Electric Industrial Co. (Electronics) 58,279
10,000 Mitsubishi Electric (Electronics) 38,439
18,000 Mitsubishi Heavy Industries, Ltd. (Industrial
Machinery) 73,059
3,000 Mitsubishi Trust & Banking (Banks) 29,164
7,000 Mitsui Co. (Wholesale Trade) 48,839
20,000 Mitsui Osk Lines (Transportation/Storage) 42,986
2,000 Mitsui Soko Co. (Business Services) 6,646
300 Nichiei Co. (Financial Services) 26,288
9,000 Nippon Express Co. (Transportation/Storage) 53,939
2,000 Nippon Kayaku Co. (Chemical Products) 10,746
14,000 Nippon Oil Co., Ltd. (Oil & Gas) 59,023
4,000 Nippon Suisan (Food & Beverages) 6,316
14 Nippon Telegraph & Telephone Corp. (Utilities) 163,181
3,000 Nishimatsu Construction (Building Materials &
Construction) 17,211
12,000 Nissan Motor Co. (Automobiles & Automobile Parts) 57,337
5,000 Sakura Bank (Banks) 18,972
2,000 Sankyo Co. (Pharmaceuticals) 50,426
4,000 Sekisui Chemical Co., Ltd. (Building Materials &
Construction) 23,212
6,000 Sekisui House (Building Materials & Construction) 64,776
1,000 Seventy Seven Bank (Banks) 8,763
6,000 Sharp Corp. (Electronics) 70,927
400 Shikoku Electric Power (Utilities) 6,021
6,000 Shionogi & Co. (Health & Medical Services) 47,466
8,000 Showa Denko KK (Chemical Products) 10,250
11,000 Snow Brand Milk (Food & Beverages) 53,741
400 Sony Corp. (Electronics) 43,151
1,000 Sumitomo Bank (Banks) 12,408
11,000 Sumitomo Osaka Cement (Building Materials &
Construction) 21,369
2,000 Suzuki Motor Corp. (Automobiles & Automobile Parts) 31,826
9,000 Taiheiyo Cement (Building Materials & Construction) 25,816
1,000 Taisei Corp. (Building Materials & Construction) 2,199
1,000 Takeda Chemical Industries (Pharmaceuticals) 46,375
1,800 Tokyo Electric Power (Utilities) 38,018
5,000 Toppan Printing Co. (Printing) 55,840
1,000 Toshiba Corp. (Industrial Machinery) 7,134
3,000 Toyo Seikan Kaisha (Building Materials &
Construction) 67,455
6,000 Toyota Motor Corp. (Automobiles & Automobile Parts) 189,964
6 West Japan Railway (Transportation/Storage) 23,014
8,000 Yasuda Fire & Marine Insurance (Insurance) 42,391
-----------
2,793,821
------------------------------------------------------------------------------
Netherlands - 4.2%
3,800 ABN AMRO Holdings NV (Banks) 82,262
1,050 Heineken NV (Food & Beverages) 53,741
1,900 ING Groep NV (Insurance) 102,827
150 Koninklijke Hoogovens NV (Diversified Industrial
Manufacturing) 7,824
500 Koninklijke KPN NV (Utilities) 23,452
850 Kon Nedlloyd NV (Transportation/Storage) 21,029
600 Philips Electronics (Electronics) 59,161
1,500 Royal Dutch Petroleum Co. (Oil & Gas) 87,828
-----------
438,124
------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
40
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE CORE INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - (continued)
Portugal - 0.4%
450 Banco Port Atlan* (Banks) $ 6,759
850 Portugal Telecom SA (Utilities) 34,567
-----------
41,326
-------------------------------------------------------------------------------
Singapore - 5.5%
17,000 Acma, Ltd. (Diversified Holding Companies) 17,180
5,000 City Developments (Real Estate) 32,021
18,000 Comfort Group (Diversified Holding Companies) 11,105
6,000 DBS Land (Real Estate) 11,986
1,000 Development Bank of Singapore (Banks) 12,221
2,000 Jurong Shipyard (Industrial Machinery) 9,812
10,000 Marco Polo Development, Ltd. (Real Estate) 17,568
5,000 National Steel, Ltd. (Steel) 8,754
10,000 Neptune Orient Lines* (Transportation/Storage) 12,221
11,000 Overseas Chinese Banking Corp -Alien Market (Banks) 91,774
2,700 Overseas Union Bank - Foreign (Banks) 13,008
10,000 Singapore Airlines, Ltd. (Airlines) 95,182
2,000 Singapore Press Holdings (Media & Communications) 34,078
27,000 Singapore Tech Engineering (Engineering) 30,617
43,000 Singapore Telecommunications (Utilities) 73,772
8,000 United Engineers (Building Materials & Construction) 9,354
13,000 United Overseas Bank (Banks) 90,893
-----------
571,546
-------------------------------------------------------------------------------
Spain - 6.6%
150 Acs Actividades Co. (Building Materials &
Construction) 4,292
2,600 Argentaria Corp Bancaria de Espana (Banks) 59,099
1,750 Banco Bilbao Vizcaya SA (Banks) 25,274
200 Banco Espir Santo (Banks) 4,651
5,900 Banco Sant Cent Hisp (Banks) 61,428
100 Corporacion Financiera Alba (Diversified Holding
Companies) 16,184
3,150 Endesa SA (Utilities) 67,152
350 Fomento de Construcciones Y Contratas SA (Building
Materials & Construction) 20,024
50 Gas Natural Sdg SA (Utilities) 3,634
2,800 Grupo Dragados SA (Mining) 33,107
250 Iberdrola SA (Utilities) 3,804
150 Petroleos Cia Esp (Oil & Gas) 4,446
3,850 Repsol SA (Oil & Gas) 79,177
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Spain - (continued)
5,200 Telefonica SA (Utilities) $ 251,032
4,400 Union Electric Fenosa (Utilities) 57,513
-----------
690,817
-------------------------------------------------------------------------------
Sweden - 2.9%
3,100 Electrolux AB (Electronics) 65,002
3,000 Ericsson Telecommunications (Telecommunications
Equipment) 96,301
400 Esselte (Business Services) 4,147
250 Hennes & Mauritz (Consumer Goods) 6,184
400 Mo Och Domsjo AB (Business Services) 9,330
1,850 Scania AB (Industrial Machinery) 51,322
4,250 Svenska Handelsbanken (Banks) 51,066
750 Volvo AB (Automobiles & Automobile Parts) 21,778
-----------
305,130
-------------------------------------------------------------------------------
Switzerland - 5.8%
11 Baloise Holdings (Insurance) 8,969
27 Cie Financier Richemont AG (Consumer Goods) 51,913
268 Credit Suisse Group (Financial Services) 46,358
91 George Fischer AG (Industrial Machinery) 29,668
34 Holderbank Financiere Glarus AG (Building Materials
& Construction) 40,120
18 Jelmoli Holding AG (Retail) 16,668
9 Movenpick Holdings (Entertainment & Leisure) 3,889
23 Nestle SA (Food & Beverages) 41,427
75 Novartis AG (Pharmaceuticals) 109,478
8 Roche Holdings AG (Health/Personal Care) 82,207
4 Schindler Holdings AG (Registered) (Industrial
Machinery) 6,173
4 Schindler Holdings AG (Bearer) (Industrial Machinery) 6,122
40 Schweizerische Reckversicherungs-Gesellschaft
(Insurance) 76,137
16 Swisscom AG (Utilities) 6,019
147 Zurich Allied AG (Insurance) 83,562
-----------
608,710
-------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $10,120,456) $10,299,340
-------------------------------------------------------------------------------
Preferred Stock - 0.0%
Germany - 0.0%
200 Rheinmetall AG (Industrial Machinery) $ 3,587
-------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $3,609) $ 3,587
-------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
41
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE CORE INTERNATIONAL EQUITY FUND
Statement of Investments (continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
<S> <C> <C> <C>
Corporate Bonds - 0.3%
Italy - 0.3%
Tecnost International
$26,970 4.50%(a) 06/23/04 $ 28,216
--------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $61,708) $ 28,216
--------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $10,185,773)(b) $10,331,143
--------------------------------------------------------------------------------------------------
Federal Income Tax Information:
Gross unrealized gain for investments in which
value exceeds cost
$ 434,133
Gross unrealized loss for investments in which
cost exceeds value
(288,763)
--------------------------------------------------------------------------------------------------
Net unrealized gain $ 145,370
--------------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
(a) Variable Rate Security. Coupon rate disclosed is that which is in effect
at 6/30/99.
(b) The amount stated also represents aggregate cost for federal income tax
purposes.
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of total net assets.
Common and Preferred Stock Industry Concentrations+
<TABLE>
<S> <C>
Aerospace/Defense 0.5%
Airlines 1.4
Automobiles & Automobile Parts 5.6
Banks 14.1
Business Services 1.4
Building Materials & Construction 4.0
Chemical Products 1.1
Computers/Office 1.1
Conglomerates 0.1
Consumer Goods 1.2
Diversified Holding Companies 1.8
Diversified Industrial
Manufacturing 0.5
Electronics 7.1
Engineering 0.3
Financial Services 3.8
Food & Beverages 1.3
Health & Medical Services 2.5
Health/Personal Care 1.1
Industrial Machinery 2.2
Insurance 6.5
Media & Communications 0.9
Mining 0.8
Oil & Gas 5.7
Paper & Forest Products 0.5
Pharmaceuticals 4.0
Printing 0.9
Real Estate 1.6
Retail 2.1
Steel 0.2
Supermarkets 0.1
Telecommunications Equipment 3.2
Tobacco 0.3
Transportation/Storage 2.0
Utilities 17.9
Wholesale Trade 0.5
--------------------------------------------------
TOTAL COMMON AND PREFERRED STOCKS 98.3%
--------------------------------------------------
</TABLE>
+ Industry concentrations greater than one tenth of one percent are
disclosed.
The accompanying notes are an integral part of these financial statements.
42
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND
Shareholder Letter
Dear Shareholders,
We are pleased to report on the performance of the Goldman Sachs Variable In-
surance Trust International Equity Fund. This semiannual report covers the
six-month period ended June 30, 1999.
Performance Review
For the six-month period ended June 30, 1999 the Fund gen-
erated a 2.69% cumulative total return. Over the same time
period, the Fund's benchmark, the FT/Actuaries EuroPac To-
tal Return Index (unhedged with dividends reinvested) gen-
erated a cumulative total return of 5.35%.
The Fund's underperformance versus its benchmark was due to
sector and asset allocation strategies. The Portfolio was
hurt by its underweight in Japan and Asia, as it favored
the weaker-performing European market. Performance was fur-
ther muted due to a strong shift in investor sentiment from
growth to value and cyclical issues as the year progressed.
In Europe, most equity markets rebounded to start the year,
as most central banks lowered interest rates to facilitate
convergence in advance of the monetary union. In addition,
countries like France, Italy and Germany used lower inter-
est rates as a means improving consumer and business confi-
dence to try and stave off a recession. The euphoria
surrounding the launch of the euro was short lived, as the
markets retreated on news of the peso devaluation, rising
U.S. interest rates and sluggish production data in much of
the region.
The Japanese market advanced strongly during the period on
the back of improved investors' sentiment. Expectations for
earnings recovery in late 1999 were substantially enhanced
by a number of statistics indicating that the worst was be-
hind.
Asian stocks produced strong results, as signs pointed to
economies in the region rebounding much faster than antici-
pated. Investors who were previously underweight in the re-
gion moved to increase their exposure, creating an
attractive investment environment.
Investment Objective
The Fund seeks long-term capital growth, primarily through
equity securities of companies that are organized outside
the United States or whose securities are principally
traded outside the United States.
43
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND
Shareholder Letter (continued)
Portfolio Composition
As of June 30, 1999, 97.3% of the Fund was invested in eq-
uity securities, with the remaining position in cash.
Top 10 Portfolio Holdings as of June 30, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Country Business Net Assets
------- ------- -------- -------------
<S> <C> <C> <C>
Nokia (AB) OYJ Finland Electronics 2.3%
Vodafone Airtouch
PLC ADR Britain Utilities 2.2
Mannesmann AG Germany Utilities 2.0
Glaxo Wellcome Britain Pharmaceuticals 1.9
Securitas AB Sweden Business Services 1.8
British
Telecommunications Britain Utilities 1.8
UBS AB Switzerland Banks 1.8
Skandia Forsakring Sweden Insurance 1.7
Ericsson
Telecommunications Sweden Computers/Office 1.7
VNU Netherlands Media & Communications 1.7
</TABLE>
* Opinions expressed in this report represent our present
opinions only. References to individual securities should
not be construed as commitments that such securities will
be retained in the Fund. From time to time, the Fund may
change the individual securities it holds, the number or
types of securities held and the markets in which it in-
vests. References to individual securities do not consti-
tute recommendations to the investor to buy, hold or sell
such securities. In addition, references to past perfor-
mance of the Fund do not indicate future returns, which are
not guaranteed and will vary. Furthermore, the value of
shares of the Fund may fall as well as rise.
Outlook
Europe--We continue to invest in quality undervalued stocks
that have strong growth opportunities. Such stocks are lo-
cated in a wide variety of sectors. At present, the most
favored sector is telecommunications, where both technolog-
ical advance and consolidation on both a European and
global level are proceeding at a rapid pace. In addition,
certain electronic, service and leisure companies remain
favored selections. While the sector rotation towards value
stocks has made the past quarter challenging, we continue
to believe in the structural growth of the aforementioned
sectors.
Japan--For the time being, we remain cautious on the market
given the recent rally and the concerns of equity valua-
tions. Based on the current price levels, the market seems
to have discounted much of earnings recovery expected to
materialize in late 1999. On a positive note, many compa-
nies are in the process of implementing restructuring plans
that they announced several months back--benefits of which
could improve earnings. Key to sustainability of market
strength will be profit trends in coming years. If we be-
come convinced of the sustainability of corporate earning
growth next year onward, we may need to revise our stance.
44
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND
Asia--Our outlook on Asia as a region has improved, al-
though it is important to note that intra-regional discrep-
ancies still exist. We believe that several countries have
"bottomed out" and are now showing signs of recovery fol-
lowing the crisis of 1998. The best performers over the
last six months were South Korea and Thailand, where the
continued downtrend in interest rates and significant fi-
nancial sector restructuring resulted in stock market ral-
lies of 246% and 31%, respectively. In addition, we expect
to see improving performance in the commodity-driven coun-
tries such as Australia, following increasing demand in
Asia and a more positive regional and global outlook. On a
cautious note, we recognize that a recovery in Asia is very
dependent on the continued strength of the U.S. market.
Consequently, we will be closely monitoring all economic
data to come out of the U.S. in an effort to determine its
impact on the Asian markets.
We thank you for your investment and look forward to your
continued confidence.
Goldman Sachs International Equity Management Team
July 29, 1999
45
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND
Statement of Investments
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - 96.7%
Australia - 2.3%
1,400 Brambles Industries, Ltd. (Transportation/Storage) $ 36,834
1,100 Broken Hill Proprietary Co. (Basic Industries) 12,725
12,000 Fosters Brewing Group, Ltd. (Alcohol) 33,777
768 Lend Lease Corp., Ltd. (Financial Services) 10,531
3,500 National Australia Bank (Banks) 57,842
3,400 News Corporation, Ltd. (Media & Communications) 28,971
4,050 TabCorp Holdings, Ltd. (Entertainment & Leisure) 27,254
1,100 Telstra Corp. (Utilities) 6,295
8,900 Westpac Banking Corp. (Banks) 57,657
10,500 Woolworths, Ltd. (Retail) 34,879
-----------
306,765
------------------------------------------------------------------------------
Britain - 20.6%
13,595 Allied Zurich (Insurance) 170,897
9,638 BP Amoco PLC (Oil & Gas) 172,580
13,927 British Telecommunications (Utilities) 233,135
9,584 Carlton Communications (Media & Communications) 79,462
9,631 Diageo PLC (Tobacco) 101,180
5,523 General Electric Co. (Electronics) 56,108
9,211 Glaxo Wellcome (Pharmaceuticals) 255,967
6,876 Great Universal Stores PLC (Retail) 76,681
12,377 Halifax Group (Banks) 147,490
10,497 Hays PLC (Business Services) 110,692
3,635 HSBC Holdings PLC (Banks) 128,517
9,204 Lloyds TSB Group PLC (Banks) 124,985
11,484 Misys PLC (Business Services) 98,292
13,805 Rentokil Initial PLC (Business Services) 53,530
13,433 Select Appointments Holdings PLC (Business Services) 160,285
15,042 Shell Transport & Trading Co. (Oil & Gas) 112,859
18,435 Stagecoach Holdings (Transportation/Storage) 65,889
7,756 Unilever (Food & Beverages) 68,829
14,594 Vodafone Airtouch PLC ADR (Utilities) 287,087
5,312 Zeneca Group (Health & Medical Services) 205,391
-----------
2,709,856
------------------------------------------------------------------------------
Denmark - 0.6%
1,607 ISS International Service System (Business Services) 85,785
------------------------------------------------------------------------------
Finland - 2.3%
3,444 Nokia (AB) OYJ (Electronics) 301,771
------------------------------------------------------------------------------
France - 10.5%
253 Accor (Entertainment & Leisure) 63,506
2,597 Alstom (Electronics) 81,652
1,227 Axa (Insurance) 149,632
294 Carrefour Supermarche (Retail) 43,187
695 Dexia France (Banks) 92,994
624 Elf Aquitaine (Oil & Gas) 91,535
4,730 Rhone-Poulenc SA (Chemical Products) 216,052
2,474 Seita Ordinary Shares (Tobacco) 142,818
850 Societe Generale (Banks) 149,747
1,135 Total 'B' (Oil & Gas) 146,369
2,518 Vivendi (Utilities) 203,891
-----------
1,381,383
------------------------------------------------------------------------------
Germany - 3.5%
1,731 Mannesmann AG (Utilities) 258,203
3,818 Preussag AG (Diversified Industrial Manufacturing) 205,055
-----------
463,258
------------------------------------------------------------------------------
Hong Kong - 3.4%
6,000 Cheung Kong Holdings, Ltd. (Real Estate) 53,360
19,000 China Telecom, Ltd. (Utilities) 52,774
5,000 CLP Holdings, Ltd. (Utilities) 24,296
4,000 Hang Seng Bank (Banks) 44,725
22,000 Hong Kong & China Gas Co. (Utilities) 31,900
19,000 Hong Kong Telecommunications, Ltd. (Utilities) 49,345
11,000 Hutchison Whampoa, Ltd. (Diversified Holding
Companies) 99,599
14,000 New World Development Company, Ltd. (Real Estate) 41,953
5,000 Sun Hung Kai Properties Co., Ltd. (Real Estate) 45,595
-----------
443,547
------------------------------------------------------------------------------
Ireland - 1.0%
7,513 Bank of Ireland (Banks) 126,248
------------------------------------------------------------------------------
Italy - 1.9%
28,398 Credito Italiano Spa (Banks) 124,708
9,780 Monte Paschi Siena (Mining) 43,351
92,618 SEAT- Pagine Gialle Spa (Media & Communications) 78,767
-----------
246,826
------------------------------------------------------------------------------
Japan - 23.1%
2,300 Aderans Company, Ltd. (Retail) 98,297
9,000 Asahi Glass Co. (Diversified Industrial
Manufacturing) 58,403
10,000 Bank of Tokyo-Mitsubishi (Banks) 142,432
3,000 Bridgestone Corp. (Automobiles & Automobile Parts) 90,766
5,000 Canon, Inc. (Computers/Office) 143,837
3,100 Circle K Japan Co. (Retail) 129,156
</TABLE>
The accompanying notes are an integral part of these financial statements.
46
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
Shares Description Value
<S> <C>
Common Stocks - (continued)
Japan - (continued)
2,000 Fuji Photo Film, Ltd. (Entertainment & Leisure) $ 75,721
1,000 Honda Motor Company, Ltd.
(Automobiles & Automobile Parts) 42,407
3,000 Kao Corp. (Consumer Goods) 84,318
8,000 Kirin Brewery, Ltd. (Alcohol) 95,892
1,400 Konami Co. (Business Services) 57,866
32,000 Mitsui Marine & Fire (Insurance) 157,394
7,000 NEC Corp. (Electronics) 87,088
13,000 NGK Insulators, Ltd. (Diversified Industrial
Manufacturing) 135,835
900 Nintendo Company, Ltd. (Entertainment & Leisure) 126,552
17 Nippon Telegraph & Telephone Corp. (Utilities) 198,148
4 NTT Mobile Communication (Utilities) 53,567
1 NTT Mobile Communications Network (Utilities) 13,557
1,000 Rohm Co. (Electronics) 156,650
5,000 Shin-etsu Chemical Co., Ltd. (Chemical Products) 167,397
1,000 SMC Corp. (Industrial Machinery) 112,011
6,000 Sumitomo Bakeli (Chemical Products) 46,226
2,000 Taisho Pharmaceutical Co. (Pharmaceuticals) 66,132
1,500 Takefuji Corp. (Financial Services) 155,121
1,000 TDK Corp. (Consumer Goods) 91,510
4,000 Terumo Corp. (Pharmaceuticals) 89,113
7,000 Toppan Forms Company, Ltd. (Printing) 133,091
5,000 Yamanouchi Pharmaceutical (Pharmaceuticals) 191,370
2 Yoshinoya D&C Company, Ltd. (Entertainment & Leisure) 36,042
-----------
3,035,899
-------------------------------------------------------------------------------
Netherlands - 12.6%
2,993 Benckiser NV (Consumer Goods) 159,666
1,348 Equant NV (Utilities) 124,229
3,329 Fortis (NL) NV (Banks) 102,779
4,705 Getronics NV (Computers/Office) 180,911
2,783 ING Groep NV* (Insurance) 150,615
3,861 Koninklijke KPN NV (Utilities) 181,095
947 Philips Elec(Kon) (Mining) 93,375
1,982 ST Microelectronics (Electronics) 131,987
6,011 TNT Post Group NV (Business Services) 143,448
5,445 VNU NV (Media & Communications) 217,503
4,296 Wolters Kluwer CVA (Media & Communications) 170,941
-----------
1,656,549
-------------------------------------------------------------------------------
New Zealand - 0.1%
3,200 Telecom Corp. of New Zealand IR (Utilities) 13,723
-------------------------------------------------------------------------------
Portugal - 0.5%
3,653 Electricidade de Portugal SA (Utilities) 65,749
-------------------------------------------------------------------------------
Singapore - 1.1%
4,000 City Developments (Real Estate) 25,617
2,000 Development Bank of Singapore (Banks) 24,442
6,000 Natsteel Electronics, Ltd. (Electronics) 26,263
2,000 Singapore Airlines, Ltd. (Airlines) 19,036
2,000 Singapore Press Holdings (Media & Communications) 34,078
12,000 Singapore Tech Engineering (Aerospace/Defense) 13,608
3,000 Singapore Telecommunications (Utilities) 5,147
-----------
148,191
-------------------------------------------------------------------------------
Spain - 2.8%
2,243 Acerinox SA (Diversified Industrial Manufacturing) 65,551
4,246 Endesa SA (Utilities) 90,516
4,328 Telefonica (Utilities) 208,933
-----------
365,000
-------------------------------------------------------------------------------
Sweden - 6.1%
6,928 Ericsson Telecommunications (Computers/Office) 222,391
8,068 ForeningsSparbanken AB (Banks) 114,049
15,892 Securitas AB (Business Services) 237,753
12,264 Skandia Forsakring (Insurance) 229,706
-----------
803,899
-------------------------------------------------------------------------------
Switzerland - 4.3%
93 Nestle SA (Food & Beverages) 167,509
112 Novartis AG (Pharmaceuticals) 163,488
774 UBS AG (Banks) 230,941
-----------
561,938
-------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $11,800,747) $12,716,387
-------------------------------------------------------------------------------
Preferred Stock - 0.6%
Germany - 0.6%
1,242 Henkel KGAA--Vorzug (Chemical Products) $ 84,757
-------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $96,802) $ 84,757
-------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
47
<PAGE>
PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND
Statement of Investments (continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
<C> <S> <C> <C>
Short-Term Obligation - 1.8%
State Street Bank Euro Time Deposit
$242,000 5.25% 07/1/99 $ 242,000
-------------------------------------------
TOTAL SHORT-TERM OBLIGATION
(Cost $242,000) $ 242,000
-------------------------------------------
TOTAL INVESTMENTS
(Cost $12,139,549)(a) $13,043,144
-------------------------------------------
Federal Income Tax
Information:
Gross unrealized gain for
investments in which value
exceeds cost $ 1,340,738
Gross unrealized loss for
investments in which cost
exceeds value (447,811)
-------------------------------------------
Net unrealized gain $ 892,927
-------------------------------------------
</TABLE>
*Non-income producing security.
(a)The aggregate cost for federal income tax purposes is $12,150,217.
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of total net assets.
--------------------------------------------------
Common and Preferred Stock Industry Concentrations
--------------------------------------------------
Aerospace/Defense 0.1%
Airlines 0.1
Alcohol 1.2
Automobiles & Automobile Parts 1.0
Banks 12.5
Basic Industries 0.1
Business Services 7.2
Chemical Products 3.9
Computers/Office 4.2
Consumer Goods 2.5
Diversified Holding Companies 0.8
Diversified Industrial Manufacturing 3.5
Electronics 6.4
Entertainment & Leisure 2.5
Financial Services 1.3
Food & Beverages 1.8
Health & Medical Services 1.6
Industrial Machinery 0.9
Insurance 6.5
Media & Communications 4.6
Mining 1.0
Oil & Gas 4.0
Pharmaceuticals 5.7
Printing 1.0
Real Estate 1.3
Retail 2.9
Tobacco 1.9
Transportation/Storage 0.8
Utilities 16.0
--------------------------------------------------
TOTAL COMMON AND PREFERRED STOCKS 97.3%
--------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST SHORT DURATION GOVERNMENT FUND
Shareholder Letter
Dear Shareholder,
We are pleased to report on the performance of the Goldman Sachs Variable In-
surance Trust Short Duration Government Fund. This semiannual report covers
the period from April 1, 1999, when the Fund began operations, through June
30, 1999.
Performance Review
From April 1, 1999 through June 30, 1999, the Fund gener-
ated a (0.20)% cumulative total return. During that period
the Fund's benchmark, a Two-Year U.S. Treasury Security,
had a 0.30% cumulative total return. The Fund's relative
underperformance was attributable, in large part, to the
general widening of non-Treasury spreads that has taken
place since inception of the Fund.
Investment Objective
The Fund seeks a high level of current income and second-
arily, in seeking current income, may also consider the po-
tential for capital appreciation. The Fund invests
primarily in securities that are issued or guaranteed by
the U.S. government, its agencies, instrumentalities or
sponsored enterprises.
Portfolio Composition
Top Portfolio Holdings as of June 30, 1999*
<TABLE>
<CAPTION>
Percentage of
Security Type Net Assets
------------- -------------
<S> <C>
Mortgage Backed Securities 62.1%
Asset Backed Securities 18.8
U.S. Treasuries 10.9
Agency Debt 4.9
Cash/Repurchase Agreement 2.7
</TABLE>
* Opinions expressed in this report represent our present
opinions only. References to individual securities should
not be construed as commitments that such securities will
be retained in the Fund. From time to time, the Fund may
change the individual securities it holds, the number or
types of securities held and the markets in which it in-
vests. References to individual securities do not consti-
tute recommendations to the investor to buy, hold or sell
such securities. In addition, references to past perfor-
mance of the Fund do not indicate future returns, which are
not guaranteed and will vary. Furthermore, the value of
shares of the Fund may fall as well as rise.
Outlook
Given recent cheapening, we are generally optimistic re-
garding the prospects for the mortgage and asset-backed
markets. However, the pace at which spreads compress going
forward will depend on numerous, yet-to-be-resolved fac-
tors, including the direction of the Federal Reserve
Board's policy, the behavior of spread sectors in general,
and the impact of Y2K on investors' willingness to tolerate
risk.
We thank you for your investment and look forward to your
continued confidence.
Goldman Sachs Fixed Income Management Team
July 29, 1999
49
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST SHORT DURATION GOVERNMENT FUND
Statement of Investments
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
<C> <S> <C> <C>
Agency Debentures - 5.0%
Federal National Mortgage Association
(FNMA)
$500,000 5.75% 04/15/03 $ 494,287
-------------------------------------------
TOTAL AGENCY DEBENTURES
(Cost $491,571) $ 494,287
-------------------------------------------
Asset-Backed Securities - 18.8%
Auto - 7.8%
Americredit Automobile Receivables
Series 1997-D, Class A3
$300,000 6.24% 09/05/03 $ 299,785
CIT RV Trust Series 1996-B, Class A3
475,000 6.65 12/15/17 478,520
----------
$ 778,305
-------------------------------------------
Credit Card - 4.0%
Fingerhut Master Trust Series 1998-1,
Class A
$400,000 6.07% 02/15/05 $ 400,408
-------------------------------------------
Home Equity - 7.0%
Advantage Mortgage Loan Trust Series
1997-3, Class A
$250,000 6.87% 09/25/21 $ 250,781
Southern Pacific Secured Assets Series
1998-1, Class A
450,000 6.27 03/25/19 449,433
----------
$ 700,214
-------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $1,892,660) $1,878,927
-------------------------------------------
Mortgage Backed Obligations - 62.1%
Collateralized Mortgage Obligations -
23.2%
FHLMC Series 1454, Class L
$198,956 5.47%(a) 04/15/22 $ 200,140
FHLMC Series 1510, Class JA
354,739 5.83(a) 05/15/13 357,215
FHLMC Series 1998, Class DB
394,590 9.50 01/17/25 406,791
FHLMC Series 2152, Class AB
497,618 6.25 01/15/26 485,203
FNMA Remic Trust 1992-49, Class G
435,276 7.50 01/25/21 440,538
INMC Series 1994-Q, Class A11
428,110 7.50 09/25/14 431,963
----------
$2,321,850
-------------------------------------------
Federal Home Loan Mortgage Corp.
(FHLMC) - 19.4%
$494,094 6.00% 04/01/14 $ 477,725
477,107 6.00 05/01/14 461,300
501,801 6.00 05/01/14 485,177
498,250 6.00 05/01/14 481,743
28,899 6.00 05/01/14 27,941
----------
$1,933,886
-------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
<C> <S> <C> <C>
Mortgage Backed Obliga-
tions - continued
Federal National Mortgage Association
(FNMA) - 9.6%
$631,055 6.50% 02/01/29 $ 606,404
369,018 6.50 02/01/29 355,984
-----------
$ 962,388
------------------------------------------
Government National Mortgage Association
(GNMA) - 9.9%
$ 15,887 7.00% 05/15/23 $ 15,733
968,297 7.00 07/15/23 958,914
15,817 7.00 09/15/23 15,663
-----------
$ 990,310
------------------------------------------
TOTAL MORTGAGE BACKED OBLIGATIONS
(Cost $6,260,858) $ 6,208,434
------------------------------------------
U.S. Treasury Obligations - 10.9%
United States Treasury Notes
$580,000 5.63% 11/30/00 $ 581,543
500,000 6.63 07/31/01 510,390
------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,100,189) $ 1,091,933
------------------------------------------
Repurchase Agreement - 2.0%
Joint Repurchase Agreement Account II(b)
$200,000 5.13% 07/01/99 $ 200,000
------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $200,000) $ 200,000
------------------------------------------
TOTAL INVESTMENTS(c)
(Cost $9,945,278) $ 9,873,581
------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
50
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST SHORT DURATION GOVERNMENT FUND
<TABLE>
----------------------------
<S> <C> <C> <C>
Federal Income Tax Infor-
mation:
Gross unrealized
gain for
investments in
which
value exceeds
cost $ 6,497
Gross unrealized
loss for
investments in
which
cost exceeds
value (78,194)
----------------------------
Net unrealized
loss $(71,697)
----------------------------
</TABLE>
Futures contracts open at June 30, 1999 are as follows:
<TABLE>
<CAPTION>
Number of
Contracts Settlement Unrealized
Type Long/(Short)(d) Month Gain/(Loss)
----------------------------------------------------------------
<C> <S> <C> <C>
Eurodollar Dollars 3 September 2000 $ (1,557)
2 Year U.S.
Treasury Note 19 September 1999 2,645
5 Year U.S.
Treasury Note (8) September 1999 (5,238)
10 Year U.S.
Treasury Note (10) September 1999 (9,220)
U.S. Treasury Bond (6) September 1999 2,603
----------------------------------------------------------------
Total $(10,767)
----------------------------------------------------------------
</TABLE>
(a) Variable Rate Security. Coupon rate disclosed is that which is in effect
at 6/30/99.
(b) The repurchase agreement is fully collateralized by Federal Obligations.
(c) The amount stated also represents aggregate cost for federal income tax
purposes.
(d) Each Euro Dollar contract represents $250,000 in notional par value. Each
2-Year U.S. Treasury Note contract represents $200,000 in notional par
value. Each 5-Year, 10-Year U.S. Treasury Note and U.S. Treasury Bond
contract represents $100,000 in notional par value. The total notional
amount and market value at risk are $7,321,356 and $7,334,301,
respectively. The determination of notional amounts as presented here are
indicative only of volume of activity and not a measure of market risk.
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of total net assets.
The accompanying notes are an integral part of these financial statements.
51
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST GLOBAL INCOME FUND
Shareholder Letter
Dear Shareholders,
We are pleased to report on the performance of the Goldman Sachs Variable In-
surance Trust Global Income Fund. This semiannual report covers the six-month
period ended June 30, 1999.
Performance Review
For the six-month period ended June 30, 1999, the Fund gen-
erated a (1.45)% cumulative total return. Over the same
time period, the Fund's benchmark, the JP Morgan Global
Government Bond Index (hedged into U.S. dollars), generated
a cumulative total return of (0.24)%.
The greatest contributor to underperformance was the Fund's
underweight Japanese bond allocation. Despite ongoing fears
of further fiscal stimulus (and therefore increased bond
supply) the Bank of Japan continued to supply liquidity to
the market, driving short-term interest rates (i.e. 1 year
or less) to below 10bps. This liquidity found its way pro-
gressively along the yield curve, as banks took the oppor-
tunity to purchase longer dated bonds - thereby driving
down yields.
Also contributing to underperformance was a dramatic flat-
tening in the U.S. yield curve between 10- and 30-year ma-
turities. Unfortunately, the positive impact of the Fund's
underweight duration position in the U.S. was more than
offset by the negative impact of the flattening yield
curve, as the portfolio was overweight in the 10-year sec-
tor relative to the 30-year sector.
Investment Objective
The Fund seeks high total return, emphasizing current in-
come and, to a lesser extent, providing opportunities for
capital appreciation, primarily through investments in
fixed-income securities of U.S. and foreign issuers and
foreign currencies.
Portfolio Composition
Top Portfolio Holdings as of June 30, 1999*
<TABLE>
<CAPTION>
Percentage of
Investment Holdings Denomination Net Assets
-------------------------------- -------------
<S> <C>
U.S. Dollar 28.6%
Euro Currency 26.3
Japanese Yen 16.4
British Pound Sterling 13.2
U.S. Dollar (Short Term Obligations) 12.0
Danish Krone 1.6
</TABLE>
* Opinions expressed in this report represent our present
opinions only. References to individual securities should
not be construed as commitments that such securities will
be retained in the Fund. From time to time, the Fund may
change the individual securities it holds, the number or
types of securities held and the markets in which it in-
vests. References to individual securities do not consti-
tute recommendations to the investor to buy, hold or sell
such securities. In addition, references to past perfor-
mance of the Fund do not indicate future returns, which are
not guaranteed and will vary. Furthermore, the value of
shares of the Fund may fall as well as rise.
52
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST GLOBAL INCOME FUND
Outlook
In the short-term, the inflation outlook and prospect for
the U.S. economy may result in further action by the Fed-
eral Reserve Board. Over the longer term, we believe that
the U.S. economy will remain strong, and that could dampen
sentiment for Treasuries.
In Europe, while we agree that the economy will start to
recover in the second half of 1999, inflation remains under
control. Market sentiment is currently fragile and European
bonds are unlikely to rally substantially without a sus-
tainable recovery of Euro currency. However, the 100 basis
points of rate hikes priced into the curve by this time
next year seems too pessimistic in our view. As a result,
we have taken the opportunity to place a small Europe-U.S.
relative value trade for the portfolio, based on the rela-
tive economic fundamentals of U.S. and Europe. We will con-
sider a larger position if the Euro starts to appreciate.
The European Central Bank is likely to continue to provide
an accommodative monetary background to protect the moder-
ate pace of economic recovery currently in evidence.
In Japan, we continue to see a very accommodative fiscal
and monetary policy framework. This is causing Japanese
government bonds to trade in a relatively narrow range, al-
though volatility remains high.
We thank you for your investment and look forward to your
continued confidence.
Goldman Sachs Global Income Management Team
London, July 29, 1999
53
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST GLOBAL INCOME FUND
Statement of Investments
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount(a) Rate Date Value
<S> <C> <C> <C>
Foreign Debt Obligations - 57.5%
British Pound Sterling - 13.2%
Abbey National Treasury
BPS 100,000 8.00% 04/02/03 $ 166,903
United Kingdom Treasury
100,000 8.00 06/10/03 171,793
250,000 9.50 10/25/04 465,951
----------
$ 804,647
----------------------------------------------------------------------------------------------
Danish Krone - 1.6%
Kingdom of Denmark
DKK 600,000 8.00% 05/15/03 $ 94,576
----------------------------------------------------------------------------------------------
Euro Currency - 26.3%
Baden-Wuerttembergische Land--Finance
EUR 200,000 5.38% 02/05/10 $ 108,189
Citicorp
100,000 5.50 06/30/10 52,975
Federal Republic of Germany
200,000 4.50 08/19/02 211,239
300,000 6.00 01/04/07 339,421
100,000 6.25 01/04/24 114,498
Government of France
100,000 4.50 07/12/03 105,561
100,000 8.50 04/25/23 145,914
Lehman Brothers Holdings
100,000 4.75 07/12/04 101,693
Republic of Italy
100,000 4.50 04/15/01 105,180
100,000 6.50 11/01/27 115,888
Standard Charter Bank
100,000 5.38 05/06/09 98,024
The Royal Bank of Scotland
100,000 4.88 03/26/09 98,920
----------
$1,597,502
----------------------------------------------------------------------------------------------
Japanese Yen - 16.4%
Asian Development Bank
JPY30,000,000 5.63% 02/18/02 $ 280,222
European Investment Bank
20,000,000 2.13 09/20/07 170,133
Government of Japan
60,000,000 0.90 12/22/08 451,004
Republic of Italy
10,000,000 3.80 03/27/08 96,085
----------
$ 997,444
----------------------------------------------------------------------------------------------
TOTAL FOREIGN DEBT OBLIGATIONS
(Cost $3,687,324) $3,494,169
----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount(a) Rate Date Value
<S> <C> <C> <C>
Corporate Bonds - 18.3%
Bayerische Landesbank Girozentrale
USD250,000 6.63% 06/25/07 $ 246,450
Ford Motor Credit Corp.
200,000 6.13 04/28/03 196,838
International Bank for Reconstruction and Development
100,000 5.63 03/17/03 98,031
100,000 5.75 02/06/08 94,083
Merrill Lynch and Company, Inc.
100,000 6.00 02/12/03 98,563
Nederlandse Waterschapsbank
100,000 6.13 02/13/08 95,473
Ontario Hydro
100,000 6.10 01/30/08 95,790
Prudential Insurance Company of America
100,000 6.38 07/23/06 95,240
Sprint Capital Corp.
100,000 6.38 05/01/09 93,893
------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $1,166,637) $1,114,361
------------------------------------------------------------------------------------------------
U.S. Treasury Obligations - 10.3%
United States Treasury Bonds
USD100,000 11.25% 02/15/15 $ 149,687
100,000 6.75 08/15/26 107,062
United States Treasury Notes
70,000 7.00 07/15/06 74,145
102,801 3.63 01/15/08 99,877
200,000 5.63 05/15/08 195,906
------------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $642,884) $ 626,677
------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
54
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST GLOBAL INCOME FUND
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount(a) Rate Date Value
<S> <C> <C> <C>
Short-Term Obligation - 12.0%
State Street Bank & Trust Euro Time Deposit
USD732,000 5.25% 07/01/99 $ 732,000
-------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATION
(cost $732,000) $ 732,000
-------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost $6,228,845)(b)
$5,967,207
-------------------------------------------------------------------------------------------------
Federal Income Tax Information:
Gross unrealized gain for investments in which
value exceeds cost $ 663
Gross unrealized loss for investments in which
cost exceeds value (264,157)
-------------------------------------------------------------------------------------------------
Net unrealized loss $ (263,494)
-------------------------------------------------------------------------------------------------
</TABLE>
(a) The principal amount of each security is stated in the currency in which
the bond is denominated. See below.
BPS = British Pound Sterling
JPY = Japanese Yen
DKK = Danish Krone
USD = United States Dollar
EUR = Euro Currency
(b) The aggregate cost for federal income tax purposes is $6,230,701.
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of total net assets.
The accompanying notes are an integral part of these financial statements.
55
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Statements of Assets and Liabilities
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Growth and CORE U.S. CORE Large Cap CORE Large Cap
Income Fund Equity Fund Growth Fund Value Fund
Assets:
<S> <C> <C> <C> <C>
Investment in
securities, at value
(identified cost
$20,543,769,
$15,199,530,
$12,066,675, $3,079,287,
$5,508,383, $5,319,693,
$14,073,325,
$10,185,773,
$12,139,549, $9,945,278,
$6,228,845) $21,486,868 $17,777,876 $14,756,176 $3,372,794
Cash, at value 18,882 73,419 50,310 20,908
Receivables:
Investment securities
sold 249,224 164,203 888,805 310,273
Dividends and interest,
at value 32,405 13,127 9,087 3,784
Fund shares sold 10,463 58,737 54,576 --
Forward foreign
currency exchange
contracts -- -- -- --
Variation margin 37,500 6,250 18,021 --
Reimbursement from
adviser 26,044 24,064 25,110 36,891
Deferred organization
expenses, net 14,602 14,965 14,966 --
Other assets 1,104 1,045 631 3
---------------------------------------------------------------------------------
Total assets 21,877,092 18,133,686 15,817,682 3,744,653
---------------------------------------------------------------------------------
Liabilities:
Payables:
Investment securities
purchased 79,718 -- 1,979,609 357,166
Fund shares repurchased 59,127 16 3,400 4,386
Amounts owed to
affiliates 31,030 28,487 25,298 8,705
Forward foreign
currency exchange
contracts -- -- -- --
Variation margin -- -- -- --
Options written, at
value 1,537 -- -- --
Accrued expenses and
other liabilities 36,603 40,265 37,517 38,274
---------------------------------------------------------------------------------
Total liabilities 208,015 68,768 2,045,824 408,531
---------------------------------------------------------------------------------
Net Assets:
Paid-in capital 20,096,208 15,255,404 11,420,022 3,006,507
Accumulated
undistributed net
investment income 139,463 42,412 17,620 9,743
Accumulated
undistributed net
realized gain (loss) on
investment, options,
futures and foreign
currency related
transactions 391,022 181,991 (355,285) 26,365
Net unrealized gain
(loss) on investments,
options, futures and
translation of assets
and liabilities
denominated in foreign
currencies 1,042,384 2,585,111 2,689,501 293,507
---------------------------------------------------------------------------------
NET ASSETS $21,669,077 $18,064,918 $13,771,858 $3,336,122
---------------------------------------------------------------------------------
Total shares of
beneficial interest
outstanding, no par
value (unlimited shares
authorized) 1,877,281 1,390,189 1,047,688 300,687
Net asset value and
redemption price per
share $ 11.54 $ 12.99 $ 13.14 $ 11.09
---------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
56
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
<TABLE>
<CAPTION>
Mid Cap Value CORE Short Duration
CORE Small Cap Capital Fund (formerly International International Government Global
Equity Fund Growth Fund Mid Cap Equity) Equity Fund Equity Fund Fund Income Fund
<S> <C> <C> <C> <C> <C> <C>
$5,851,274 $6,406,741 $15,168,425 $10,331,143 $13,043,144 $9,873,581 $5,967,207
46,545 6,410 40,878 137,410 65,552 74,120 5,950
1,643,347 2,742 5,053 3,307,000 60,686 -- 86,558
3,779 3,737 8,046 9,702 28,206 64,041 84,002
478 8,547 111,918 -- 23,964 -- 4,778
-- -- -- -- 12,450 -- 67,867
-- -- -- -- -- -- --
42,457 17,900 21,237 77,356 28,968 23,958 24,476
14,966 15,828 15,839 -- 14,602 -- 14,602
420 368 429 10,000 946 -- 511
------------------------------------------------------------------------------------------------------
7,603,266 6,462,273 15,371,825 13,872,611 13,278,518 10,035,700 6,255,951
------------------------------------------------------------------------------------------------------
1,708,421 -- 482,311 3,274,781 30,834 -- 106,267
996 167 11,692 10,281 66 3,015 2,897
21,463 21,282 26,052 14,114 28,628 11,333 22,399
-- -- -- -- 26,126 -- 5,135
-- -- -- -- -- 8,128 --
-- -- 3,381 -- -- -- --
37,219 40,982 44,204 100,137 45,897 23,145 38,051
------------------------------------------------------------------------------------------------------
1,768,099 62,431 567,640 3,399,313 131,551 45,621 174,749
------------------------------------------------------------------------------------------------------
5,988,809 5,227,813 13,639,629 10,002,686 11,458,532 10,009,314 6,014,901
6,958 729 52,570 79,506 44,127 117,878 125,226
(503,491) 84,252 16,303 247,903 748,342 (54,649) 149,964
342,891 1,087,048 1,095,683 143,203 895,966 (82,464) (208,889)
------------------------------------------------------------------------------------------------------
$5,835,167 $6,399,842 $14,804,185 $10,473,298 $13,146,967 $9,990,079 $6,081,202
------------------------------------------------------------------------------------------------------
612,214 500,713 1,479,679 1,000,793 1,074,848 1,000,931 597,983
$9.53 $ 12.78 $ 10.00 $ 10.46 $ 12.23 $ 9.98 $ 10.17
------------------------------------------------------------------------------------------------------
</TABLE>
57
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Statements of Operations
For the Period Ended June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Growth and CORE U.S. CORE Large Cap CORE Large Cap
Income Fund Equity Fund Growth Fund Value Fund(a)
<S> <C> <C> <C> <C>
Investment income(b):
Dividends $ 152,891 $ 82,360 $ 49,669 $ 13,672
Interest 62,605 14,252 9,038 2,536
-------------------------------------------------------------------------------------
Total income 215,496 96,612 58,707 16,208
-------------------------------------------------------------------------------------
Expenses:
Management fees 63,361 47,425 35,952 5,657
Transfer agent fees 10,884 8,356 9,846 6,825
Custodian fees 22,943 25,040 20,803 29,782
Registration fees 930 2,036 1,795 276
Professional fees 27,166 24,432 24,430 13,650
Trustee fees 4,418 4,417 4,419 1,695
Amortization of deferred
organization expenses 2,054 2,054 2,054 --
Other 7,024 6,678 6,356 3,909
-------------------------------------------------------------------------------------
Total expenses 138,780 120,438 105,655 61,794
-------------------------------------------------------------------------------------
Less -- expenses
reimbursed by Goldman
Sachs (62,747) (66,238) (64,568) (55,329)
-------------------------------------------------------------------------------------
Net expenses 76,033 54,200 41,087 6,465
-------------------------------------------------------------------------------------
NET INVESTMENT INCOME 139,463 42,412 17,620 9,743
-------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investment, options, futures and foreign
currency transactions:
Net realized gain (loss)
from:
Investment transactions 845,585 379,359 206,032 26,365
Options written 940 -- -- --
Futures transactions (778) 39,603 66,334 --
Foreign currency related
transactions 38 -- -- --
Net change in unrealized
gain (loss) on:
Investments 688,292 1,265,235 993,547 293,507
Options written 3,892 -- -- --
Futures 95,393 6,769 -- --
Translation of assets
and liabilities
denominated in foreign
currencies -- -- -- --
-------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investment, options,
futures and foreign
currency transactions: 1,633,362 1,690,966 1,265,913 319,872
-------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $1,772,825 $1,733,378 $1,283,533 $329,615
-------------------------------------------------------------------------------------
</TABLE>
(a) Commencement of operation on April 1, 1999.
(b) For the Growth and Income, CORE U.S. Equity, CORE Large Cap Growth, CORE
Small Cap Equity, Capital Growth, Mid Cap Value, CORE International
Equity, International Equity and Global Income Funds, taxes withheld on
dividends and interests were $2,085, $1,928, $2,482, $4, $502, $53,
$14,501, $14,783 and $214, respectively.
The accompanying notes are an integral part of these financial statements.
58
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
<TABLE>
<CAPTION>
Mid Cap Value CORE Short Duration
CORE Small Cap Capital Fund (formerly International International Government Global
Equity Fund Growth Fund Mid Cap Equity) Equity Fund(a) Equity Fund Fund(a) Income Fund
<S> <C> <C> <C> <C> <C> <C>
$28,684 $ 22,493 $ 49,543 $ 94,939 $120,749 $ -- $ --
498 1,761 41,159 12,985 10,680 135,339 162,889
-----------------------------------------------------------------------------------------------------------
29,182 24,254 90,702 107,924 131,429 135,339 162,889
-----------------------------------------------------------------------------------------------------------
18,522 19,604 32,111 21,959 59,690 13,720 26,666
12,400 8,908 8,325 6,825 8,628 6,825 9,931
44,693 18,590 20,677 95,054 45,012 12,657 19,993
1,739 1,190 914 920 2,580 920 1,797
24,431 18,969 23,667 13,650 23,370 13,650 24,399
4,418 4,417 4,418 1,695 4,418 1,695 4,418
2,054 2,054 2,054 -- 2,054 -- 2,054
6,130 5,853 6,163 3,981 6,818 3,981 6,317
-----------------------------------------------------------------------------------------------------------
114,387 79,585 98,329 144,084 152,570 53,448 95,575
-----------------------------------------------------------------------------------------------------------
(92,163) (56,060) (60,197) (115,666) (77,958) (35,987) (64,464)
-----------------------------------------------------------------------------------------------------------
22,224 23,525 38,132 28,418 74,612 17,461 31,111
-----------------------------------------------------------------------------------------------------------
6,958 729 52,570 79,506 56,817 117,878 131,778
-----------------------------------------------------------------------------------------------------------
267,924 107,577 182,230 278,799 719,886 (69,096) (10,538)
-- -- 3,741 -- -- -- --
-- -- 53,358 -- -- 14,447 --
-- -- 3 (30,896) 20,530 -- 162,358
41,641 553,759 1,250,195 145,187 (443,473) (71,697) (427,032)
-- -- 583 -- -- -- --
-- -- (42,855) -- -- (10,767) --
-- -- (8) (1,984) (455) -- 54,393
-----------------------------------------------------------------------------------------------------------
309,565 661,336 1,447,247 391,106 296,488 (137,113) (220,819)
-----------------------------------------------------------------------------------------------------------
$316,523 $662,065 $1,499,817 $470,612 $353,305 $ (19,235) $ (89,041)
-----------------------------------------------------------------------------------------------------------
</TABLE>
59
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Statements of Changes in Net Assets
For the Period Ended June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Growth and CORE U.S. CORE Large Cap CORE Large Cap
Income Fund Equity Fund Growth Fund Value Fund(a)
<S> <C> <C> <C> <C>
From operations:
Net investment income $ 139,463 $ 42,412 $ 17,620 $ 9,743
Net realized gain (loss)
on investment, options,
futures and foreign
currency related
transactions 845,785 418,962 272,366 26,365
Net change in unrealized
gain (loss) on
investments, options,
futures and translation
of assets and
liabilities denominated
in foreign currencies 787,577 1,272,004 993,547 293,507
------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from operations 1,772,825 1,733,378 1,283,533 329,615
------------------------------------------------------------------------------------
From share transactions:
Proceeds from sales of
shares 7,317,688 8,581,519 4,439,208 17,327
Reinvestment of
dividends and
distributions -- -- -- --
Cost of shares
repurchased (1,235,865) (2,058,840) (165,272) (10,820)
------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from share transactions 6,081,823 6,522,679 4,273,936 6,507
------------------------------------------------------------------------------------
TOTAL INCREASE
(DECREASE) 7,854,648 8,256,057 5,557,469 336,122
------------------------------------------------------------------------------------
Net assets:
Beginning of period 13,814,429 9,808,861 8,214,389 3,000,000
------------------------------------------------------------------------------------
End of period $21,669,077 $18,064,918 $13,771,858 $3,336,122
------------------------------------------------------------------------------------
Accumulated
undistributed net
investment income $ 139,463 $ 42,412 $ 17,620 $ 9,743
------------------------------------------------------------------------------------
Summary of share trans-
actions:
Shares sold 668,662 701,466 357,558 301,670
Shares issued on
reinvestment of
dividends and
distributions -- -- -- --
Shares repurchased (113,265) (170,279) (13,091) (983)
------------------------------------------------------------------------------------
TOTAL 555,397 531,187 344,467 300,687
------------------------------------------------------------------------------------
</TABLE>
(a) Commencement of operation April 1, 1999.
The accompanying notes are an integral part of these financial statements.
60
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
<TABLE>
<CAPTION>
Mid Cap Value CORE Short Duration
CORE Small Cap Capital Fund (formerly International International Government Global
Equity Fund Growth Fund Mid Cap Equity) Equity Fund(a) Equity Fund Fund(a) Income Fund
<S> <C> <C> <C> <C> <C> <C>
$ 6,958 $ 729 $ 52,570 $ 79,506 $ 56,817 $ 117,878 $ 131,778
267,924 107,577 239,332 247,903 740,416 (54,649) 151,820
41,641 553,759 1,207,915 143,203 (443,928) (82,464) (372,639)
-----------------------------------------------------------------------------------------------------------
316,523 662,065 1,499,817 470,612 353,305 (19,235) (89,041)
-----------------------------------------------------------------------------------------------------------
738,478 1,612,175 10,369,594 19,639 3,379,079 17,492 461,292
-- -- -- -- -- -- --
(60,726) (337,452) (2,669,122) (16,953) (1,791,139) (8,178) (32,335)
-----------------------------------------------------------------------------------------------------------
677,752 1,274,723 7,700,472 2,686 1,587,940 9,314 428,957
-----------------------------------------------------------------------------------------------------------
994,275 1,936,788 9,200,289 473,298 1,941,245 (9,921) 339,916
-----------------------------------------------------------------------------------------------------------
4,840,892 4,463,054 5,603,896 10,000,000 11,205,722 10,000,000 5,741,286
-----------------------------------------------------------------------------------------------------------
$5,835,167 $6,399,842 $14,804,185 $10,473,298 $13,146,967 $9,990,079 $6,081,202
-----------------------------------------------------------------------------------------------------------
$ 6,958 $ 729 $ 52,570 $ 79,506 $ 44,127 $ 117,878 $ 125,226
-----------------------------------------------------------------------------------------------------------
83,471 134,965 1,113,374 1,001,957 281,177 1,001,750 44,625
-- -- -- -- -- -- --
(6,765) (28,689) (287,536) (1,164) (147,389) (819) (3,130)
-----------------------------------------------------------------------------------------------------------
76,706 106,276 825,838 1,000,793 133,788 1,000,931 41,495
-----------------------------------------------------------------------------------------------------------
</TABLE>
61
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Statements of Changes in Net Assets
For the Period Ended December 31, 1998(a)
<TABLE>
<CAPTION>
Growth and
Income Fund
<S> <C>
From operations:
Net investment income $ 117,677
Net realized gain (loss) on investments, futures and foreign
currency transactions (454,763)
Net change in unrealized gain (loss) on investments, futures
and translation of assets and liabilities denominated in
foreign currencies 254,807
------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (82,279)
------------------------------------------------------------------------------
Distributions to shareholders:
From net investment income (117,677)
In excess of net investment income (3,441)
From net realized gain on investment transactions --
------------------------------------------------------------------------------
Total distributions to shareholders (121,118)
------------------------------------------------------------------------------
From share transactions:
Proceeds from sales of shares 14,318,816
Reinvestment of dividends and distributions 121,118
Cost of shares repurchased (522,108)
------------------------------------------------------------------------------
Net increase in net assets resulting from share transactions 13,917,826
------------------------------------------------------------------------------
TOTAL INCREASE 13,714,429
------------------------------------------------------------------------------
Net assets:
Beginning of period 100,000
------------------------------------------------------------------------------
End of period $13,814,429
------------------------------------------------------------------------------
Accumulated distributions in excess of net investment income $ --
------------------------------------------------------------------------------
Summary of share transactions:
Shares sold 1,362,585
Shares issued on reinvestment of dividends and distributions 11,782
Shares repurchased (52,483)
------------------------------------------------------------------------------
TOTAL 1,321,884
------------------------------------------------------------------------------
</TABLE>
(a) The Growth and Income, International Equity and Global Income Funds
commenced operations on January 12, 1998; the CORE U.S. Equity, CORE
Large Cap Growth and CORE Small Cap Equity Funds commenced operations on
February 13, 1998; the Capital Growth and Mid Cap Equity Funds commenced
operations on April 30, 1998 and May 1, 1998, respectively.
The accompanying notes are an integral part of these financial statements.
62
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
<TABLE>
<CAPTION>
CORE U.S. CORE Large Cap CORE Small Cap Capital Mid Cap International Global
Equity Fund Growth Fund Equity Fund Growth Fund Equity Fund Equity Fund Income Fund
<S> <C> <C> <C> <C> <C> <C>
$ 41,873 $ 10,579 $ 12,998 $ 9,584 $ 40,774 $ 20,063 $ 236,855
(236,971) (627,651) (771,415) (23,325) (223,031) 59,153 23,945
1,313,107 1,695,954 301,250 533,289 (112,232) 1,339,894 163,750
------------------------------------------------------------------------------------------------
1,118,009 1,078,882 (457,167) 519,548 (294,489) 1,419,110 424,550
------------------------------------------------------------------------------------------------
(41,873) (10,579) (12,998) (9,584) (40,774) -- (213,231)
(1,567) (1,864) (1,946) (1,046) (2,334) -- --
-- -- -- -- -- (85,668) (57,323)
------------------------------------------------------------------------------------------------
(43,440) (12,443) (14,944) (10,630) (43,108) (85,668) (270,554)
------------------------------------------------------------------------------------------------
9,097,369 7,271,607 5,329,424 3,988,296 6,990,413 9,861,289 5,338,273
43,440 12,443 14,944 10,630 43,107 85,668 270,269
(406,517) (136,100) (31,365) (44,790) (1,092,027) (74,677) (21,252)
------------------------------------------------------------------------------------------------
8,734,292 7,147,950 5,313,003 3,954,136 5,941,493 9,872,280 5,587,290
------------------------------------------------------------------------------------------------
9,808,861 8,214,389 4,840,892 4,463,054 5,603,896 11,205,722 5,741,286
------------------------------------------------------------------------------------------------
-- -- -- -- -- -- --
------------------------------------------------------------------------------------------------
$9,808,861 $8,214,389 $4,840,892 $4,463,054 $ 5,603,896 $11,205,722 $5,741,286
------------------------------------------------------------------------------------------------
$ -- $ -- $ -- $ -- $ -- $ (12,690) $ (6,552)
------------------------------------------------------------------------------------------------
893,251 715,088 537,211 397,752 781,599 940,178 532,484
3,963 1,122 1,756 995 5,238 7,521 26,012
(38,212) (12,989) (3,459) (4,310) (132,996) (6,639) (2,008)
------------------------------------------------------------------------------------------------
859,002 703,221 535,508 394,437 653,841 941,060 556,488
------------------------------------------------------------------------------------------------
</TABLE>
63
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Financial Highlights
Selected Data for a Share Outstanding
<TABLE>
<CAPTION>
Income from
investment operations(c) Distributions to shareholders
------------------------- ----------------------------------
Net realized From
and unrealized net realized
gain (loss) on gain on
Net asset investment In excess investment
value at Net option and From net of net and
beginning investment futures investment investment futures
of period income transactions income income transactions
<S> <C> <C> <C> <C> <C> <C>
Growth and Income Fund
For the six months ended
June 30, 1999
(unaudited) $10.45 $0.07 $ 1.02 $ -- $ -- $ --
For the period ended
December 31, 1998(b) 10.00 0.09 0.45 (0.09) -- --
-------------------------------------------------------------------------------------------------
CORE U.S. Equity Fund
For the six months ended
June 30, 1999
(unaudited) 11.42 0.03 1.54 -- -- --
For the period ended
December 31, 1998(b) 10.00 0.05 1.42 (0.05) -- --
-------------------------------------------------------------------------------------------------
CORE Large Cap Growth
Fund
For the six months ended
June 30, 1999
(unaudited) 11.68 0.02 1.44 -- -- --
For the period ended
December 31, 1998(b) 10.00 0.02 1.68 (0.02) -- --
-------------------------------------------------------------------------------------------------
CORE Large Cap Value
Fund
For the three months
ended June 30, 1999
(unaudited)(a) 10.00 0.03 1.06 -- -- --
-------------------------------------------------------------------------------------------------
CORE Small Cap Equity
Fund
For the six months ended
June 30, 1999
(unaudited) 9.04 0.01 0.48 -- -- --
For the period ended
December 31, 1998(b) 10.00 0.02 (0.95) (0.02) (0.01) --
-------------------------------------------------------------------------------------------------
Capital Growth Fund
For the six months ended
June 30, 1999
(unaudited) 11.31 -- 1.47 -- -- --
For the period ended
December 31, 1998(b) 10.00 0.03 1.31 (0.03) -- --
-------------------------------------------------------------------------------------------------
Mid Cap Value Fund
(formerly Mid Cap
Equity)
For the six months ended
June 30, 1999
(unaudited) 8.57 0.04 1.39 -- -- --
For the period ended
December 31, 1998(b) 10.00 0.07 (1.43) (0.07) -- --
-------------------------------------------------------------------------------------------------
CORE International
Equity Fund
For the three months
ended June 30, 1999
(unaudited)(a) 10.00 0.08 0.38 -- -- --
-------------------------------------------------------------------------------------------------
International Equity
Fund
For the six months ended
June 30, 1999
(unaudited) 11.91 0.05 0.27 -- -- --
For the period ended
December 31, 1998(b) 10.00 0.02 1.98 -- -- (0.09)
-------------------------------------------------------------------------------------------------
Short Duration
Government Fund
For the three months
ended June 30, 1999
(unaudited)(a) 10.00 0.12 (0.14) -- -- --
-------------------------------------------------------------------------------------------------
Global Income Fund
For the six months ended
June 30, 1999
(unaudited) 10.32 0.22 (0.37) -- -- --
For the period ended
December 31, 1998(b) 10.00 0.45 0.38 (0.40) -- (0.11)
-------------------------------------------------------------------------------------------------
</TABLE>
(a) The CORE Large Cap Value, CORE International Equity and Short Duration
Government commenced operations on April 1, 1999.
(b) Growth and Income, International Equity and Global Income commenced
operations on January 12, 1998; CORE U.S. Equity, CORE Large Cap Growth
and CORE Small Cap Equity Funds commenced operations on February 13,
1998; Capital Growth and Mid Cap Value Funds commenced operations on
April 30, 1998 and May 1, 1998, respectively.
(c) Includes the balancing effect of calculating per share amounts.
(d) Assumes investment at the net asset value at the beginning of the period,
reinvestment of all distributions and a complete redemption of the
investment at the net asset value at the end of the period.
(e) Annualized.
The accompanying notes are an integral part of these financial statements.
64
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
<TABLE>
<CAPTION>
Ratios assuming no
expense reimbursements
---------------------------
Net Net Ratio of Ratio of
increase assets Ratio of net Ratio of net
(decrease) Net asset at end net investment net investment
in net value, of expenses income expenses income/loss Portfolio
asset end of Total period to average to average to average to average turnover
value period return(d) (in 000s) net assets(e) net assets(e) net assets(e) net assets(e) rate
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 1.09 $11.54 10.43% $21,669 0.90% 1.65% 1.64% 0.91% 57%
0.45 10.45 5.47 13,814 0.90 1.85 2.69 0.06 88
-------------------------------------------------------------------------------------------------------------
1.57 12.99 13.75 18,065 0.80 0.63 1.78 (0.35) 50
1.42 11.42 14.73 9,809 0.80 0.70 2.83 (1.33) 75
-------------------------------------------------------------------------------------------------------------
1.46 13.14 12.50 13,772 0.80 0.34 2.06 (0.92) 41
1.68 11.68 16.99 8,214 0.80 0.20 2.87 (1.87) 69
-------------------------------------------------------------------------------------------------------------
1.09 11.09 10.90 3,336 0.80 1.21 7.65 (5.64) 10
-------------------------------------------------------------------------------------------------------------
0.49 9.53 5.42 5,835 0.90 0.28 4.63 (3.45) 62
(0.96) 9.04 (9.30) 4,841 0.90 0.30 3.92 (2.72) 74
-------------------------------------------------------------------------------------------------------------
1.47 12.78 13.00 6,400 0.90 0.03 3.04 (2.11) 16
1.31 11.31 13.40 4,463 0.90 0.42 4.92 (3.60) 20
-------------------------------------------------------------------------------------------------------------
1.43 10.00 16.69 14,804 0.95 1.31 2.45 (0.19) 39
(1.43) 8.57 (13.56) 5,604 0.95 1.74 4.79 (2.10) 38
-------------------------------------------------------------------------------------------------------------
0.46 10.46 4.60 10,473 1.10 3.08 5.58 (1.40) 50
-------------------------------------------------------------------------------------------------------------
0.32 12.23 2.69 13,147 1.25 0.95 2.56 (0.36) 48
1.91 11.91 20.07 11,206 1.25 0.23 2.97 (1.49) 76
-------------------------------------------------------------------------------------------------------------
(0.02) 9.98 (0.20) 9,990 0.70 4.73 2.14 3.29 97
-------------------------------------------------------------------------------------------------------------
(0.15) 10.17 (1.45) 6,081 1.05 4.45 3.23 2.27 105
0.32 10.32 8.29 5,741 1.05 4.59 3.30 2.34 203
-------------------------------------------------------------------------------------------------------------
</TABLE>
65
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Notes to Financial Statements
June 30, 1999 (Unaudited)
1. ORGANIZATION
Goldman Sachs Variable Insurance Trust (the "Trust") is a Delaware business
trust registered under the Investment Company Act of 1940, as amended ("the
Act") as an open-end, management investment company. The Trust includes
Goldman Sachs Growth and Income Fund ("Growth and Income"), Goldman Sachs
CORE U.S. Equity Fund ("CORE U.S. Equity"), Goldman Sachs CORE Large Cap
Growth Fund ("CORE Large Cap Growth"), Goldman Sachs CORE Large Cap Value
Fund ("CORE Large Cap Value"), Goldman Sachs CORE Small Cap Equity Fund
("CORE Small Cap Equity"), Goldman Sachs Capital Growth Fund ("Capital
Growth"), Goldman Sachs Mid Cap Value Fund ("Mid Cap Value") (formerly Mid
Cap Equity), Goldman Sachs CORE International Equity Fund ("CORE Interna-
tional Equity") Goldman Sachs International Equity Fund ("International Equi-
ty"), Goldman Sachs Short Duration Government Fund ("Short Duration
Government") and Goldman Sachs Global Income Fund ("Global Income"), collec-
tively, "the Funds" or individually a "Fund". Each Fund, except the Global
Income Fund, is diversified under the Act. The Global Income Fund is a "non-
diversified" Fund under the Act.
Shares of the Trust may be purchased and held by separate accounts of par-
ticipating life insurance companies for the purpose of funding variable annu-
ity contracts and variable life insurance policies. Shares of the Trust are
not offered directly to the general public.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds. The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make es-
timates and assumptions that may affect the reported amounts. Actual results
could differ from those estimates.
A. Investment Valuation -- Investments in securities traded on a U.S. or for-
eign securities exchange or the NASDAQ system are valued daily at their last
sale or closing price on the principal exchange on which they are traded. If
no sale occurs, securities are valued at the last bid price. Unlisted equity
and debt securities for which market quotations are available are valued at
the last sale price on valuation date, or if no sale occurs, at the last bid
price. Short-term debt obligations maturing in sixty days or less are valued
at amortized cost. Restricted securities, and other securities for which quo-
tations are not readily available, are valued at fair value using methods ap-
proved by the Board of Trustees.
B. Securities Transactions and Investment Income -- Securities transactions
are recorded as of the trade date. Realized gains and losses on sales of in-
vestments are calculated on the identified-cost basis. Dividend income is re-
corded on the ex-dividend date. Dividends for which the fund has the choice
to receive either cash or stock are recognized as investment income in an
amount equal to the cash dividend. Interest income is determined on the basis
of interest accrued, premium amortized and discount earned. Growth and Income
and Global Income do not amortize premiums. In addition, it is the Funds'
policy to accrue for estimated capital gains taxes on foreign securities held
by the Funds, which are subject to such taxes.
66
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
C. Foreign Currency Translations -- Amounts denominated in foreign currencies
are translated into U.S. dollars on the following basis: (i) investment valu-
ations, other assets and liabilities initially expressed in foreign curren-
cies are converted each business day into U.S. dollars based upon current
exchange rates; (ii) purchases and sales of foreign investments, income and
expenses are converted into U.S. dollars based upon currency exchange rates
prevailing on the respective dates of such transactions.
Net realized and unrealized gain (loss) on foreign currency transactions
will represent: (i) foreign currency exchange gains and losses from the sale
and holdings of foreign currencies; (ii) gains and losses between trade date
and settlement date on investment securities transactions and forward ex-
change contracts; and (iii) gains and losses from the difference between
amounts of interest and dividend recorded and the amounts actually received.
D. Forward Foreign Currency Exchange Contracts -- CORE International Equity,
International Equity, Global Income, Growth and Income, Capital Growth and
Mid Cap Value may enter into forward foreign currency exchange contracts for
the purchase or sale of a specific foreign currency at a fixed price on a fu-
ture date as a hedge or cross-hedge against either specific transactions or
portfolio positions. CORE International Equity, International Equity and
Global Income may also purchase and sell forward contracts to seek to in-
crease total return. All commitments are "marked-to-market" daily at the ap-
plicable translation rates and any resulting unrealized gains or losses are
recorded in each Fund's financial statements. The Funds record realized gains
or losses at the time the forward contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise upon
entering into these contracts from the potential inability of counterparties
to meet the terms of their contracts and from unanticipated movements in the
value of a foreign currency relative to the U.S. dollar.
E. Mortgage Dollar Rolls -- Global Income and Short Duration Government may
enter into mortgage "dollar rolls" in which the Fund sells 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. During the roll period, the
Fund loses the right to receive principal and interest paid on the securities
sold. However, the Fund benefits to the extent of any difference between the
price received for the securities sold and the lower forward price for the
future purchase (often referred to as the "drop") or fee income plus the in-
terest earned on the cash proceeds of the securities sold until the settle-
ment date of the forward purchase. The Fund will hold and maintain in a
segregated account, until the settlement date, cash, liquid assets or high-
grade debt securities in an amount equal to the forward purchase price. For
financial reporting and tax reporting purposes, the Fund treats mortgage dol-
lar rolls as two separate transactions; one involving the purchase of a secu-
rity and a separate transaction involving a sale.
F. Futures Contracts -- The Funds may enter into futures transactions to
hedge against changes in interest rates, securities prices, currency exchange
rates or to seek an increase of total return.
Upon entering into a futures contract, the Funds are required to deposit
with a broker an amount of cash or securities equal to the minimum initial
margin requirement of the futures exchange on which the contract is traded.
Payments for marked to market on futures contracts ("variation margin") are
paid or received by the Funds daily, dependent on the daily fluctuations in
the value of the contracts, and are recorded for financial reporting purposes
as unrealized gains or losses. When contracts are closed, the Funds realize a
gain or loss equal to the difference between the value of the futures con-
tract to sell and the value of futures contract to buy. Gains and losses are
reported in the Statements of Operations.
67
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Notes to Financial Statements (continued)
June 30, 1999 (Unaudited)
The use of futures contracts involve, to varying degrees, elements of mar-
ket and counterparty risk which may exceed the amounts recognized in the
Statements of Assets and Liabilities. Changes in the value of the futures
contract may not directly correlate with changes in the value of the under-
lying securities. This risk may decrease the effectiveness of the Funds'
hedging strategies and potentially result in a loss.
G. Option Accounting Principles -- When the Funds write call or put options,
an amount equal to the premium received is recorded as an asset and as an
equivalent liability. The amount of the liability is subsequently marked-to-
market to reflect the current market value of the option written. When a
written option expires on its stipulated expiration date or the Funds enter
into a closing purchase transaction, the Funds realize a gain or loss without
regard to any unrealized gain or loss on the underlying security, and the li-
ability related to such option is extinguished. When a written call option is
exercised, the Funds realize a gain or loss from the sale of the underlying
security, and the proceeds of the sale are increased by the premium origi-
nally received. When a written put option is exercised, the amount of the
premium originally received will reduce the cost of the security which the
Funds purchase upon exercise. There is a risk of loss from a change in value
of such options which may exceed the related premiums received.
Upon the purchase of a call option or a protective put option by the Funds,
the premium paid is recorded as an investment and subsequently marked-to-mar-
ket to reflect the current market value of the option. If an option which the
Funds have purchased expires on the stipulated expiration date, the Funds
will realize a loss in the amount of the cost of the option. If the Funds en-
ter into a closing sale transaction, the Funds will realize a gain or loss,
depending on whether the sale proceeds for the closing sale transaction are
greater or less than the cost of the option. If the Funds exercise a pur-
chased put option, the Funds will realize a gain or loss from the sale of the
underlying security, and the proceeds from such sale will be decreased by the
premium originally paid. If the Funds exercise a purchased call option, the
cost of the security which the Funds purchase upon exercise will be increased
by the premium originally paid.
H. Federal Taxes -- It is each Fund's policy to comply with the requirements
of the Internal Revenue Code applicable to regulated investment companies and
to distribute each year substantially all of its investment company taxable
and tax- exempt income to its shareholders. Accordingly, no federal tax pro-
visions are required.
The characterization of distributions to shareholders for financial report-
ing purposes is determined in accordance with income tax rules. Therefore,
the source of a portfolio's distributions may be shown in the accompanying
financial statements as either from or in excess of net investment income or
net realized gain on investment transactions, or from paid-in-capital, de-
pending on the type of book/tax differences that may exist as well as timing
differences.
As of December 31, 1998, the following Funds had capital loss carryforwards
for U.S. federal tax purposes. This amount is available to be carried forward
to offset future capital gains to the extent permitted by applicable laws or
regulations.
<TABLE>
<CAPTION>
Year of
Fund Amount Expiration
------------------------------------------------
<S> <C> <C>
Growth and Income Fund $382,000 2006
------------------------------------------------
CORE U.S. Equity Fund 237,000 2006
------------------------------------------------
CORE Large Cap Growth Fund 628,000 2006
------------------------------------------------
CORE Small Cap Equity Fund 760,000 2006
------------------------------------------------
Capital Growth Fund 22,000 2006
------------------------------------------------
Mid Cap Value Fund 138,000 2006
------------------------------------------------
</TABLE>
68
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
I. Deferred Organization Expenses -- Organization-related costs are being am-
ortized on a straight-line basis over a period of five years. Included in
"Accrued expenses and other liabilities" in the accompanying Statements of
Assets and Liabilities, Capital Growth and Mid Cap Value Funds owed $8,367
and $8,365, respectively, to an affiliate for organizational expenses in-
curred for the period ended June 30, 1999.
The deferred organization costs for Growth and Income, International Equity
and Global Income Funds each have an unamortized period remaining through
January 12, 2003; the CORE U.S. Equity, CORE Large Cap Growth and CORE Small
Cap Equity Funds each have an unamortized period remaining through February
13, 2003; the Capital Growth and Mid Cap Value Funds have an unamortized pe-
riod remaining through April 30, 2003 and May 1, 2003, respectively.
J. Expenses -- Expenses incurred by the Trust that do not specifically relate
to an individual portfolio of the Trust are generally allocated to the port-
folios on a pro-rata basis.
K. Segregatable Transactions -- As set forth in the prospectus, certain Funds
may enter into transactions to seek total return such as forward foreign cur-
rency exchange contracts, futures contracts, written options, mortgage dollar
rolls, when issued and forward commitments that require the Funds to segre-
gate assets on the accounting records equal to or greater than the market
value of the corresponding transactions. It is each Fund's policy to maintain
liquid assets as collateral to cover these requirements.
3. AGREEMENTS
Pursuant to the Investment Management Agreement (the "Agreement"), Goldman
Sachs Asset Management ("GSAM"), a separate operating division of Goldman,
Sachs & Co. ("Goldman Sachs"), serves as the investment adviser for Growth
and Income, CORE U.S. Equity, CORE Large Cap Growth, CORE Large Cap Value,
CORE Small Cap Equity, Capital Growth, Mid Cap Value, CORE International Eq-
uity and Short Duration Government Funds. Goldman Sachs Asset Management In-
ternational ("GSAMI"), an affiliate of Goldman Sachs, serves as the
investment adviser for International Equity and Global Income. Under the
Agreement, the advisers, subject to the general supervision of the Trust's
Board of Trustees, manage the Funds' portfolios (GSAM and GSAMI are each re-
ferred to herein as the "investment adviser"). As compensation for the serv-
ices rendered pursuant to the Agreement, the assumption of the expenses
related thereto and administering the Funds' business affairs, including pro-
viding facilities, the adviser is entitled to a fee, computed daily and pay-
able monthly at an annual rate of the average daily net assets as follows:
<TABLE>
<CAPTION>
Advisor
Fund Fee
--------------------------------------------
<S> <C> <C>
Growth and Income Fund 0.75%
--------------------------------------------
CORE U.S. Equity Fund 0.70
--------------------------------------------
CORE Large Cap Growth Fund 0.70
--------------------------------------------
CORE Large Cap Value Fund 0.70
--------------------------------------------
CORE Small Cap Equity Fund 0.75
--------------------------------------------
Capital Growth Fund 0.75
--------------------------------------------
Mid Cap Value Fund 0.80
--------------------------------------------
CORE International Equity Fund 0.85
--------------------------------------------
International Equity Fund 1.00
--------------------------------------------
Short Duration Government Fund 0.55
--------------------------------------------
Global Income Fund 0.90
--------------------------------------------
</TABLE>
69
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Notes to Financial Statements (continued)
June 30, 1999 (Unaudited)
The advisor has voluntarily agreed to limit certain "Other Expenses" of the
Funds (excluding management fees, taxes, interest, brokerage fees, litigation
and indemnification and other extraordinary expenses) to the extent that such
expenses exceed .15%, .10%, .10%, .10%, .15%, .15%, .15%, .25%, .25%, .15%
and .15% of the average daily net assets of Growth and Income, CORE U.S. Eq-
uity, CORE Large Cap Growth, CORE Large Cap Value, CORE Small Cap Equity,
Capital Growth, Mid Cap Value, CORE International Equity, International Equi-
ty, Short Duration Government and Global Income, respectively.
For the period ended June 30, 1999, the adviser has voluntarily agreed to
reimburse other expenses as follows (amounts in thousands):
<TABLE>
<CAPTION>
Reimbursement
Fund Reimbursement Outstanding
---------------------------------------------------------------------------------------
<S> <C> <C>
Growth and Income $63 $26
---------------------------------------------------------------------------------------
CORE U.S. Equity 66 24
---------------------------------------------------------------------------------------
CORE Large Cap Growth 65 25
---------------------------------------------------------------------------------------
CORE Large Cap Value 55 37
---------------------------------------------------------------------------------------
CORE Small Cap Equity 92 42
---------------------------------------------------------------------------------------
Capital Growth 56 18
---------------------------------------------------------------------------------------
Mid Cap Value 60 21
---------------------------------------------------------------------------------------
CORE International Equity 116 77
---------------------------------------------------------------------------------------
International Equity 78 29
---------------------------------------------------------------------------------------
Short Duration Government 36 24
---------------------------------------------------------------------------------------
Global Income 64 24
---------------------------------------------------------------------------------------
</TABLE>
Goldman Sachs also serves as the Transfer Agent of the Funds for a fee.
Goldmans Sachs serves as the distributor of each Fund's shares at no cost to
the Funds.
As of June 30, 1999, Goldman Sachs was the beneficial owner of 10%, 28%,
36%, 90%, 86%, 47%, 14%, 95%, 61%, 100% and 82% of the outstanding shares of
the Growth and Income, CORE U.S. Equity, CORE Large Cap Growth, CORE Large
Cap Value, CORE Small Cap Equity, Capital Growth, Mid Cap Value, CORE Inter-
national Equity, International Equity, Short Duration Government and Global
Income, respectively.
70
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
4. PORTFOLIO SECURITY TRANSACTIONS
For the period ended June 30, 1999, written call option transactions in
Growth and Income were as follows:
<TABLE>
<CAPTION>
Number of Premium
Written Options Contracts Received
----------------------------------------------------------------
<S> <C> <C>
Balance outstanding at beginning of period -- --
Options written 25 $6,369
Options expired (8) (940)
----------------------------------------------------------------
BALANCE OUTSTANDING, END OF PERIOD 17 $5,429
----------------------------------------------------------------
</TABLE>
For the period ended June 30, 1999, written call option transactions in Mid
Cap Value were as follows:
<TABLE>
<CAPTION>
Number of Premium
Written Options Contracts Received
----------------------------------------------------------------
<S> <C> <C>
Balance outstanding at beginning of period -- --
Options written 26 $ 7,705
Options expired (7) (3,741)
----------------------------------------------------------------
BALANCE OUTSTANDING, END OF PERIOD 19 $ 3,964
----------------------------------------------------------------
</TABLE>
Purchases and proceeds of sales or maturities of long-term securities for the
period ended June 30, 1999, were as follows:
<TABLE>
<CAPTION>
Sales or Sales or Maturities
Purchases of Purchases Maturities of (excluding U.S.
U.S. Government (excluding U.S. U.S. Government Government and
and agency Government and and agency agency
obligations agency obligations) obligations obligations)
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Growth and
Income $ -- $11,249,900 $ -- $8,326,924
--------------------------------------------------------------------------------------
CORE U.S. Eq-
uity -- 12,464,829 -- 6,624,284
--------------------------------------------------------------------------------------
CORE Large
Cap Growth -- 8,546,028 -- 4,226,679
--------------------------------------------------------------------------------------
CORE Large
Cap Value -- 3,384,613 -- 331,691
--------------------------------------------------------------------------------------
CORE Small
Cap Equity -- 3,799,699 -- 3,093,357
--------------------------------------------------------------------------------------
Capital
Growth -- 2,211,718 -- 844,744
--------------------------------------------------------------------------------------
Mid Cap Value -- 10,019,966 -- 2,622,229
--------------------------------------------------------------------------------------
CORE Interna-
tional Equity -- 14,992,740 -- 5,085,766
--------------------------------------------------------------------------------------
International
Equity -- 7,271,352 -- 5,462,096
--------------------------------------------------------------------------------------
Short Dura-
tion Govern-
ment 16,955,181 2,346,154 9,473,914 --
--------------------------------------------------------------------------------------
Global Income 1,717,724 4,479,918 2,376,617 3,380,428
--------------------------------------------------------------------------------------
</TABLE>
71
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Notes to Financial Statements (continued)
June 30, 1999 (Unaudited)
At June 30, 1999, International Equity had outstanding forward foreign cur-
rency exchange contracts as follows:
<TABLE>
<CAPTION>
Value on
Open Foreign Currency Settlement Current Unrealized Unrealized
Purchase Contracts Date Value Gain Loss
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Euro Currency Expiring 8/20/99 $ 284,439 $ 273,313 $ -- $11,126
Japanese Yen Expiring 8/18/99 22,678 22,657 -- 21
Japanese Yen Expiring 8/18/99 330,000 329,938 -- 62
-----------------------------------------------------------------------------
TOTAL OPEN FORWARD FOREIGN
CURRENCY PURCHASE CONTRACTS $ 637,117 $ 625,908 $ -- $11,209
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
<CAPTION>
Value on
Open Foreign Currency Settlement Current Unrealized Unrealized
Sale Contracts Date Value Gain Loss
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Euro Currency Expiring 7/26/99 $ 11,547 $ 11,522 $ 25 $ --
Hong Kong Dollar Expiring
9/10/99 177,451 177,371 80 --
Hong Kong Dollar Expiring
12/8/99 223,411 227,970 -- 4,559
Hong Kong Dollar Expiring
12/8/99 12,721 12,867 -- 146
Swiss Franc Expiring 8/20/99 260,581 250,051 10,530 --
-----------------------------------------------------------------------------
TOTAL OPEN FORWARD FOREIGN
CURRENCY SALE CONTRACTS $ 685,711 $ 679,781 $10,635 $ 4,705
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
<CAPTION>
Closed but Unsettled Purchase Sale Realized Realized
Forward Currency Contracts Value Value Gain Loss
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Japanese Yen Expiring 8/18/99 $305,999 $312,000 -- $ 6,001
Japanese Yen Expiring 8/18/99 18,001 18,781 -- 780
Japanese Yen Expiring 8/18/99 313,000 316,081 -- 3,081
Japanese Yen Expiring 8/18/99 509,689 507,874 $ 1,815 --
Singapore Dollar Expiring
7/27/99 27,177 27,257 -- 80
Singapore Dollar Expiring
7/27/99 6,794 6,828 -- 34
Singapore Dollar Expiring
7/27/99 19,717 19,787 -- 70
Singapore Dollar Expiring
7/27/99 19,696 19,789 -- 93
Singapore Dollar Expiring
7/27/99 25,098 25,171 -- 73
-----------------------------------------------------------------------------
TOTAL CLOSED BUT UNSETTLED FOR-
WARD CURRENCY CONTRACTS $1,245,171 $1,253,568 $ 1,815 $10,212
-----------------------------------------------------------------------------
</TABLE>
72
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
At June 30, 1999, Global Income had outstanding forward foreign currency
exchange contracts as follows:
<TABLE>
<CAPTION>
Value on
Open Foreign Currency Settlement Current Unrealized Unrealized
Purchase Contracts Date Value Gain Loss
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Australian Dollar Expiring
7/16/99 $ 27,732 $ 27,540 $ -- $ 192
Australian Dollar Expiring
7/16/99 10,476 10,401 -- 75
Australian Dollar Expiring
7/16/99 37,795 37,618 -- 177
Australian Dollar Expiring 8/4/99 72,000 73,033 1,033 --
Australian Dollar Expiring
9/13/99 76,000 76,134 134 --
Canadian Dollar Expiring 8/16/99 76,000 75,342 -- 658
Canadian Dollar Expiring 8/23/99 154,040 153,600 -- 440
Euro Expiring 9/10/99 77,245 76,693 -- 552
Euro Expiring 9/10/99 77,345 76,693 -- 652
Swedish Krona Expiring 9/22/99 76,148 76,022 -- 126
Swedish Krona Expiring 9/22/99 76,266 76,140 -- 126
-------------------------------------------------------------------------------
TOTAL OPEN FORWARD FOREIGN
CURRENCY PURCHASE CONTRACTS $ 761,047 $759,216 $ 1,167 $2,998
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
<CAPTION>
Value on
Open Forward Foreign Currency Settlement Current Unrealized Unrealized
Sale Contracts Date Value Gain Loss
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
British Pound Expiring 9/29/99 $ 818,643 $ 815,551 $ 3,092 $ --
Euro Expiring 7/26/99 73,332 71,198 2,134 --
Euro Expiring 7/26/99 458,575 458,236 339 --
Euro Expiring 7/26/99 106,992 106,474 518 --
Euro Expiring 8/20/99 521,378 500,985 20,393 --
Euro Expiring 8/20/99 353,409 341,474 11,935 --
Euro Expiring 9/22/99 76,148 76,154 -- 6
Euro Expiring 9/22/99 76,266 76,556 -- 290
Danish Krone Expiring 7/14/99 98,597 93,936 4,661 --
Japanese Yen Expiring 8/18/99 671,204 668,205 2,999 --
Japanese Yen Expiring 9/10/99 77,245 77,605 -- 360
Japanese Yen Expiring 9/10/99 77,344 76,415 929 --
Japanese Yen Expiring 9/20/99 89,490 89,078 412 --
Japanese Yen Expiring 9/20/99 99,989 99,479 510 --
Japanese Yen Expiring 12/20/99 103,515 101,740 1,775 --
New Zealand Dollar Expiring
8/13/99 2,783 2,621 162 --
Swiss Franc Expiring 8/20/99 141,543 135,823 5,720 --
-------------------------------------------------------------------------------
TOTAL OPEN FORWARD FOREIGN
CURRENCY SALE CONTRACTS $3,846,453 $3,791,530 $55,579 $ 656
-------------------------------------------------------------------------------
</TABLE>
73
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Notes to Financial Statements (continued)
June 30, 1999 (Unaudited)
<TABLE>
-----------------------------------------------------------------------------
<CAPTION>
Closed but Unsettled Purchase Sale Realized Realized
Forward Currency Contracts Value Value Gain Loss
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Danish Krone Expiring 7/14/99 $187,667 $185,083 $ 2,584 $ --
Euro Expiring 7/26/99 123,377 121,563 1,814 --
Euro Expiring 7/26/99 236,166 231,009 5,157 --
Euro Expiring 7/26/99 135,004 134,440 564 --
Japanese Yen Expiring 8/18/99 75,519 77,000 -- 1,481
Japanese Yen Expiring 8/18/99 76,337 76,000 337 --
Japanese Yen Expiring 8/18/99 76,628 76,000 628 --
Japanese Yen Expiring 8/18/99 76,037 76,000 37 --
-----------------------------------------------------------------------------
TOTAL CLOSED BUT UNSETTLED FORWARD CUR-
RENCY CONTRACTS $986,735 $977,095 $11,121 $1,481
-----------------------------------------------------------------------------
</TABLE>
The contractual amounts of forward foreign currency exchange contracts do
not necessarily represent the amounts potentially subject to risk. The mea-
surement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered. At June 30,
1999, International Equity and Global Income had sufficient cash and/or secu-
rities to cover any commitments under these contracts.
The International Equity and Global Income Funds have recorded a "Receiv-
able for forward foreign currency exchange contracts" and "Payable for for-
ward foreign currency exchange contracts" resulting from "open" and "closed
but unsettled" forward foreign currency exchange contracts of $12,450 and
$26,126 and $67,867 and $5,135, respectively, in the accompanying Statement
of Assets and Liabilities.
For the period ended June 30, 1999, the Trust paid Goldman Sachs approxi-
mately $461 of brokerage commissions from portfolio transactions.
5. REPURCHASE AGREEMENTS
During the term of a repurchase agreement, the value of the underlying secu-
rities, including accrued interest, is required to equal or exceed the value
of the repurchase agreement. The underlying securities for all repurchase
agreements are held in safekeeping at the Funds' custodian.
6. JOINT REPURCHASE AGREEMENT ACCOUNT
The Funds, together with other registered investment companies having manage-
ment agreements with GSAM or their affiliates, transfer uninvested cash into
joint accounts, the daily aggregate balance of which is invested in one or
more repurchase agreements.
At June 30, 1999, Growth and Income, CORE U.S. Equity, CORE Large Cap
Growth, Capital Growth, Mid Cap Value and Short Duration Government had undi-
vided interests in the repurchase agreements in the following joint account
which equaled $3,900,000, $400,000, $1,000,000, $100,000, $2,400,000 and
$200,000, respectively, in principal amount. At June 30, 1999, the following
repurchase agreements held in this joint account were fully collateralized by
Federal Agency obligations.
74
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Repurchase Agreements Amount Rate Date Cost
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ABN/AMRO, Inc. $412,400,000 5.30% 07/01/1999 $ 412,400,000
------------------------------------------------------------------------------
Bear Stearns Companies, Inc. 200,000,000 5.00 07/01/1999 200,000,000
------------------------------------------------------------------------------
NationsBanc Montgomery
Securities LLC 500,000,000 5.05 07/01/1999 500,000,000
------------------------------------------------------------------------------
TOTAL JOINT REPURCHASE
AGREEMENT ACCOUNT II $1,112,400,000
------------------------------------------------------------------------------
</TABLE>
7. LINE OF CREDIT FACILITY
The Funds participated in a $250,000,000 uncommitted, unsecured revolving
line of credit facility. Under the most restrictive arrangement, each Fund
must have owned securities having a market value in excess of 300% of the to-
tal bank borrowings. Effective April 30, 1999, the Funds now participate in a
$250,000,000 uncommitted unsecured revolving line of credit facility and a
$250,000,000 committed unsecured revolving line of credit facility. Under the
most restrictive arrangement, each Fund must own securities having a market
value in excess of 400% of the total bank borrowings. These facilities are to
be used solely for temporary or emergency purposes. The interest rate on
borrowings is based on the Federal Funds rate. The committed facility also
requires a fee to be paid by the Funds based on the amount of the commitment
which has not been utilized. During the six months ended June 30, 1999, the
Funds did not have any borrowings under any of these facilities.
75
<PAGE>
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
<PAGE>
TRUSTEES OFFICERS
Ashok N. Bakhru, Douglas C. Grip, President
Chairman Jesse Cole, Vice President
David B. Ford James A Fitzpatrick, Vice
Douglas C. Grip President
John P. McNulty Anne Marcel, Vice President
Mary P. McPherson Nancy L. Mucker, Vice
Alan A. Shuch President
Jackson W. Smart, John M. Perlowski, Treasurer
Jr. Adrien Deberghes, Assistant
William H. Treasurer
Springer Philip V. Giuca, Jr.,
Richard P. Strubel Assistant Treasurer
Michael J. Richman,
Secretary
Howard B. Surloff, Assistant
Secretary
Valerie A. Zondorak,
Assistant Secretary
GOLDMAN SACHS & CO.
Distributor and Transfer Agent
GOLDMAN SACHS ASSET MANAGEMENT
Investment Adviser
GOLDMAN SACHS ASSET MANAGEMENT INTERNATIONAL
133 Peterborough Court
London, England EC4A 2BB
Toll Free (in U.S.): 800-
292-4726
This report is prepared for the
general information of contract
owners and is not an offer of
shares of the Goldman Sachs
Variable Insurance Trust: Growth
and Income, CORE U.S. Equity,
CORE Large Cap Growth, CORE Large
Cap Value, CORE Small Cap Equity,
Capital Growth, Mid Cap Value,
CORE International Equity,
International Equity, Short
Duration Government, and Global
Income Funds.
This material is not authorized
for distribution to prospective
investors unless preceded or
accompanied by a current
Prospectus which contains facts
concerning the Fund's objectives,
policies, management, expenses
and other information.
(C) Copyright 1999 Goldman, Sachs & Co. All rights
reserved. Date of first use: August 13, 1999
