<PAGE>
GOLDMAN SACHS ASSET MANAGEMENT 32 OLD SLIP, NEW YORK, NEW YORK 10005
Goldman
Sachs Variable Insurance Trust
Annual Report
December 31, 1999
[LOGO OF GOLDMAN SACHS]
<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 annual report covers the year
ended December 31, 1999.
Market Review
Over the year, restrained inflation, solid growth in corpo-
rate profits and gains by a few leadership sectors drove
U.S. indices to record levels. These index gains were
driven primarily by the Technology and Telecommunications
sectors. As was the case in 1998, the strong performance of
these stocks continued to be fueled by investor excitement
over the explosive growth of the Internet. In the broader
market, however, more stocks fell than rose. The NASDAQ
Composite Index, driven primarily by Technology stocks
listed on the NASDAQ Stock Market, rose 48.2% in the last
three months of the period, and an extraordinary 85.6% for
the year ended December 31, 1999. According to Frank Rus-
sell, the technology sector of the Russell 3000 (broad mar-
ket stock index) rose 38.2% in the last three months of the
year, and logged a 78.2% gain for the year. While two addi-
tional sectors--basic materials and capital goods--also
outperformed the Standard & Poor's (S&P) 500, several sec-
tors fell sharply, such as transportation and utilities,
both down 13%, and bank stocks, down between 10% and 15% on
average.
Performance Review
For the year ended December 31, 1999, the Fund generated a
5.41% aggregate total return. Over the same time period,
the Fund's benchmark, the S&P 500 Index (with dividends re-
invested), generated an aggregate total return of 21.04%.
The Fund's underperformance versus its benchmark is due
primarily to the general underperformance of the value
style during the period. Although value surged during the
second quarter of 1999, the growth-led market resumed its
pace thereafter, erasing the strong performance of the sec-
ond quarter.
More specific to the portfolio, several key factors de-
tracted from performance, including a sizeable underweight
in technology, adverse stock selection in financials, and
overweight positions in tobacco, medical providers and
electric utilities. We adjusted the Fund's portfolio in the
fourth quarter to reflect a greater quality bias, to limit
the bets against specific positions and industry weights in
the benchmark, and to temper the deep value tilt in the
portfolio. Although these steps began to impact relative
portfolio performance positively in the last quarter of the
year, they did not offset prior underperformance.
Investment Objective and Strategies
The Fund seeks long-term growth of capital and growth of
income through a diversified portfolio of equity securities
that the investment adviser considers to have favorable
prospects for capital appreciation 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 December 31, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Line of Business Net Assets
------- ---------------- -------------
<S> <C> <C>
Microsoft Corp. Computer Software 4.6%
General Electric Co. Financial Services 3.0
Exxon Mobil Corp. Energy Resources 2.7
Intel Corp. Semiconductors 2.4
International Business
Machines, Inc. Computer Software 2.0
Wal-Mart Stores, Inc. Department Store 1.8
Royal Dutch Petroleum Co. ADR Energy Resources 1.8
Cisco Systems, Inc. Computer Hardware 1.8
Lucent Technologies, Inc. Electrical Equipment 1.6
Citigroup, Inc. Banks 1.5
</TABLE>
* Opinions expressed in this report represent our present
opinions only. Reference to individual securities should
not be construed as a commitment 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 a recommendation 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
Most of 1999 was a difficult period for value. Though some
of the Fund's holdings were punished in this environment,
we remain confident in our long-term assessments of their
businesses. We are also excited about the investment oppor-
tunities that currently exist in the market and will con-
tinue to search for businesses that we believe will
generate value for the Fund over the long term.
Additionally, as part of our ongoing efforts to improve the
Fund for the benefit of shareholders, we have, over the
past year, implemented some changes. Most recently, these
include:
. Adding two senior portfolio managers and, as a result,
substantial experience specific to large cap U.S. equi-
ties.
. Implementing a value investment philosophy with a primary
emphasis on company quality, as measured by management,
strategy and long-term, sustainable advantages.
. Aligning portfolio structure with the goals of perfor-
mance that is competitive with the S&P 500 and in the top
quartile versus VIT Growth and Income Fund competitors.
We thank you for your investment.
Goldman Sachs Value Portfolio Management Team
January 31, 2000
2
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND
Performance Summary
December 31, 1999
The following graph shows the value as of December 31, 1999, of a $10,000 in-
vestment made on January 12, 1998 (commencement of operations). For compara-
tive purposes, the performance of the Fund's benchmark (the Standard and
Poor's 500 Index ("S&P 500 Index")) is shown. This performance data repre-
sents past performance and should not be considered indicative of future per-
formance which will fluctuate with changes in market conditions. These
performance fluctuations will cause an investor's shares, when redeemed, to
be worth more or less than their original cost.
Growth and Income Fund's Lifetime Performance
Growth of a $10,000 Investment, Distributions Reinvested January 12, 1998 to
December 31, 1999
[GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND'S LIFETIME
PERFORMANCE GRAPH APPEARS HERE]
Growth and Income Fund S&P 500 Index
1/12/98 10,000 10,000
1/31/98 10,550 10,572
2/98 11,481 11,334
3/98 11,810 11,915
4/98 11,720 12,035
5/98 11,451 11,828
6/98 11,391 12,308
7/98 10,801 12,176
9/98 9,251 10,416
9/98 9,831 11,083
10/98 10,261 11,984
11/98 10,491 12,711
12/98 10,547 13,444
1/99 10,629 14,006
2/99 10,296 13,570
3/99 10,670 14,113
4/99 11,326 14,659
5/99 11,406 14,313
6/99 11,648 15,108
7/99 11,174 14,636
8/99 10,740 14,563
9/99 10,226 14,164
10/99 10,640 15,061
11/99 10,782 15,366
12/99 11,119 16,272
<TABLE>
<CAPTION>
Since Inception One year
Average Annual Total Return through December 31,
1999
<S> <C> <C>
Growth and Income Fund (commenced January 12, 1998) 5.53% 5.41%
------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND
Statement of Investments
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
Common Stocks - 86.3%
Airlines - 0.5%
8,600 Southwest Airlines Co. $ 139,213
---------------------------------------------------------
Alcohol - 0.9%
1,500 Anheuser-Busch Cos., Inc. 106,313
2,700 The Seagram Co. Ltd. 121,331
----------
227,644
---------------------------------------------------------
Banks - 5.8%
7,600 Bank of America Corp. 381,425
7,100 Citigroup, Inc. 394,494
2,000 First Union Corp. 65,625
5,000 Mellon Financial Corp. 170,313
4,800 National City Corp. 113,700
2,200 The Chase Manhattan Corp. 170,912
5,100 Wells Fargo Co. 206,231
----------
1,502,700
---------------------------------------------------------
Chemicals - 1.6%
1,900 E.I. du Pont de Nemours & Co. 125,163
2,300 Minnesota Mining &
Manufacturing Co. 225,112
600 The Dow Chemical Co. 80,175
----------
430,450
---------------------------------------------------------
Clothing - 0.4%
2,200 The Gap, Inc. 101,200
---------------------------------------------------------
Computer Hardware - 4.8%
4,300 Cisco Systems, Inc.* 460,637
5,700 Compaq Computer Corp. 154,256
3,200 Dell Computer Corp.* 163,200
1,100 EMC Corp.* 120,175
1,800 Hewlett-Packard Co. 205,088
1,800 Sun Microsystems, Inc.* 139,388
----------
1,242,744
---------------------------------------------------------
Computer Software - 8.8%
5,600 Computer Associates
International, Inc. 391,650
4,900 International Business
Machines, Inc. 529,200
10,200 Microsoft Corp.* 1,190,850
1,600 Oracle Corp.* 179,300
----------
2,291,000
---------------------------------------------------------
Defense/Aerospace - 0.2%
1,700 Raytheon Co.* 42,181
---------------------------------------------------------
Department Store - 3.7%
5,400 Federated Department Stores, Inc.* 273,037
7,000 The May Department Stores Co. 225,750
6,900 Wal-Mart Stores, Inc. 476,962
----------
975,749
---------------------------------------------------------
Drugs - 5.5%
2,400 Bristol-Myers Squibb Co. 154,050
2,400 Eli Lilly & Co. 159,600
4,300 Merck & Co., Inc. 288,369
4,500 Pfizer, Inc. 145,969
4,500 Pharmacia & Upjohn, Inc. 202,500
---------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
Common Stocks - (continued)
Drugs - (continued)
4,300 Schering-Plough Corp. $ 181,406
3,500 Warner-Lambert Co. 286,781
----------
1,418,675
-------------------------------------------------------
Electrical Equipment - 3.6%
5,400 Lucent Technologies, Inc. 403,987
1,400 Motorola, Inc. 206,150
3,200 Nortel Networks Corp. 323,200
----------
933,337
-------------------------------------------------------
Electrical Utilities - 3.0%
10,000 Entergy Corp. 257,500
4,600 FPL Group, Inc. 196,937
5,000 PG&E Corp. 102,500
7,000 Unicom Corp. 234,500
----------
791,437
-------------------------------------------------------
Energy Resources - 5.0%
8,792 Exxon Mobil Corp. 708,305
5,700 Occidental Petroleum Corp. 123,263
7,800 Royal Dutch Petroleum Co. ADR 471,412
----------
1,302,980
-------------------------------------------------------
Environmental Services - 0.5%
7,400 Waste Management, Inc. 127,188
-------------------------------------------------------
Financial Services - 5.0%
6,500 Federal Home Loan Mortgage Corp. 305,906
3,500 Federal National Mortgage Assoc. 218,531
5,100 General Electric Co. 789,225
----------
1,313,662
-------------------------------------------------------
Food & Beverage - 2.8%
13,620 Archer-Daniels-Midland Co. 165,993
6,700 ConAgra, Inc. 151,169
2,000 H.J. Heinz Co. 79,625
3,700 PepsiCo, Inc. 130,425
3,300 The Coca-Cola Co. 192,225
----------
719,437
-------------------------------------------------------
Forest - 0.9%
4,000 International Paper Co. 225,750
-------------------------------------------------------
Grocery - 1.8%
4,600 Safeway, Inc.* 163,588
12,700 The Kroger Co.* 239,712
1,100 Unilever NV 59,881
----------
463,181
-------------------------------------------------------
Heavy Electrical - 0.8%
3,400 Emerson Electric Co. 195,075
-------------------------------------------------------
Home Products - 1.5%
3,500 The Gillette Co. 144,156
2,300 The Procter & Gamble Co. 251,994
----------
396,150
-------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
Common Stocks - (continued)
Industrial Parts - 0.8%
1,500 Ingersoll-Rand Co. $ 82,594
1,700 Textron, Inc. 130,369
----------
212,963
------------------------------------------------------------------
Information Services - 1.6%
3,000 America Online, Inc.* 226,313
1,600 Automatic Data Processing, Inc. 86,200
1,500 Electronic Data Systems Corp. 100,406
----------
412,919
------------------------------------------------------------------
Leisure - 0.3%
1,100 Eastman Kodak Co. 72,875
------------------------------------------------------------------
Media - 3.2%
4,400 CBS Corp.* 281,325
900 Clear Channel Communications, Inc.* 80,325
2,100 MediaOne Group, Inc.* 161,306
5,000 The Walt Disney Co. 146,250
2,100 Time Warner, Inc. 152,119
----------
821,325
------------------------------------------------------------------
Medical Products - 1.9%
2,800 Baxter International, Inc. 175,875
6,300 Becton, Dickinson & Co. 168,525
1,500 Johnson & Johnson 139,687
----------
484,087
------------------------------------------------------------------
Medical Providers - 0.4%
4,000 Columbia/HCA Healthcare Corp. 117,250
------------------------------------------------------------------
Mining - 0.4%
1,200 Alcoa, Inc.* 99,600
------------------------------------------------------------------
Motor Vehicle - 0.6%
2,900 Ford Motor Co. 154,969
------------------------------------------------------------------
Oil Refining - 0.7%
1,400 Texaco, Inc. 76,038
4,800 USX-Marathon Group 118,500
----------
194,538
------------------------------------------------------------------
Property Insurance - 3.3%
2,800 American International Group, Inc. 302,750
4,500 The Hartford Financial Services Group, Inc. 213,188
6,500 XL Capital Ltd. 337,187
----------
853,125
------------------------------------------------------------------
Publishing - 0.6%
3,300 The New York Times Co. 162,113
------------------------------------------------------------------
Railroads - 0.8%
8,800 Burlington Northern Santa Fe Corp. 213,400
------------------------------------------------------------------
Restaurants - 0.4%
2,700 Tricon Global Restaurants, Inc.* 104,288
------------------------------------------------------------------
Security/Asset Management - 0.7%
1,200 Morgan Stanley Dean Witter & Co. 171,300
------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
Common Stocks - (continued)
Semiconductors - 3.0%
7,600 Intel Corp. $ 625,575
1,600 Texas Instruments, Inc. 155,000
-----------
780,575
-------------------------------------------------
Specialty Retail - 1.3%
3,800 CVS Corp. 151,763
2,700 The Home Depot, Inc. 185,119
-----------
336,882
-------------------------------------------------
Telephone - 8.2%
4,927 AT&T Corp. 250,045
3,700 Bell Atlantic Corp. 227,781
6,000 BellSouth Corp. 280,875
4,200 GTE Corp. 296,363
5,100 MCI WorldCom, Inc.* 270,619
6,784 SBC Communications, Inc. 330,720
5,000 Sprint Corp. 336,562
1,800 U.S. West, Inc. 129,600
-----------
2,122,565
-------------------------------------------------
Tobacco - 0.4%
5,000 Philip Morris Cos., Inc. 115,938
-------------------------------------------------
Wireless - 0.6%
700 ALLTEL Corp. 57,881
900 Sprint Corp. (PCS Group)* 92,250
-----------
150,131
-------------------------------------------------
TOTAL COMMON STOCKS
(Cost $20,895,534 ) $22,420,596
-------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
<S> <C> <C> <C>
Repurchase Agreements - 13.1%
Joint Repurchase Agreement Ac-
count II/\
$3,400,000 3.16% 01/03/2000 $ 3,400,000
---------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $3,400,000) $ 3,400,000
---------------------------------------------
TOTAL INVESTMENTS
(Cost $24,295,534) $25,820,596
---------------------------------------------
</TABLE>
* Non-income producing security.
/\ A portion of this security is segregated as collateral for initial margin
requirements on future transactions.
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.
5
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM 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 SM U.S. Equity Fund. This annual report covers the year
ended December 31, 1999.
Market Review
Over the year, restrained inflation, solid growth in corpo-
rate profits and gains by a few leadership sectors drove
U.S. indices to record levels. These index gains were
driven primarily by the Technology and Telecommunications
sectors. As was the case in 1998, the strong performance of
these stocks continued to be fueled by investor excitement
over the explosive growth of the Internet. In the broader
market, however, more stocks fell than rose. The NASDAQ
Composite Index, driven primarily by Technology stocks
listed on the NASDAQ Stock Market, rose 48.2% in the last
three months of the period, and an extraordinary 85.6% for
the year ended December 31, 1999. According to Frank Rus-
sell, the technology sector of the Russell 3000 (broad mar-
ket stock index) rose 38.2% in the last three months of the
year, and logged a 78.2% gain for the year. While two addi-
tional sectors--basic materials and capital goods--also
outperformed the Standard & Poor's (S&P) 500, several sec-
tors fell sharply, such as transportation and utilities,
both down 13%, and bank stocks, down between 10% and 15% on
average.
Performance Review
For the year ended December 31, 1999, the Fund generated a
24.30% aggregate total return, outperforming the 21.04% ag-
gregate total return of its benchmark, the S&P 500 Index
(with dividends reinvested).
CORE's emphasis on Value and Momentum factors helped re-
turns during the year. In general, the returns to Value
were higher in the early part of the year, sagged in mid-
year and staged a comeback at year-end. Momentum fared well
most months of the year and surged in the last two months.
However, there were two months in which Momentum detracted
substantially from returns.
Investment Objective and Strategies
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
6
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM U.S. EQUITY FUND
to that of the benchmark, those stocks ranked highly by
both the quantitative model and the Goldman Sachs Global
Investment Research Department are selected to have over-
weight positions in the portfolio.
Portfolio Composition
Top 10 Portfolio Holdings as of December 31, 1999*
<TABLE>
<CAPTION>
Company Line of Business Percentage of Net Assets
------- ---------------- ------------------------
<S> <C> <C>
General Electric Co. Financial Services 4.1%
Microsoft Corp. Computer Software 3.9
Cisco Systems, Inc. Computer Hardware 3.0
Citigroup, Inc. Banks 2.0
Wal-Mart Stores,
Inc. Department Store 2.0
Merck & Co., Inc. Drugs 1.8
AT&T Corp. Telephone 1.7
The Procter & Gamble
Co. Home Products 1.6
Johnson & Johnson Medical Products 1.5
Intel Corp. Semiconductors 1.5
</TABLE>
* Opinions expressed in this report represent our present
opinions only. Reference to individual securities should
not be construed as a commitment 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 a recommendation 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
Although the market's returns were driven by relatively few
stocks, and return dispersion (the difference between the
best- and worst-performing stocks) remained high during the
year, the Fund's investment process led to outperformance
versus its benchmark, as it has done in the past. 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 expect 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
January 31, 2000
7
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM U.S. EQUITY FUND
Performance Summary
December 31, 1999
The following graph shows the value as of December 31, 1999, of a $10,000 in-
vestment made on February 13, 1998 (commencement of operations). For compara-
tive purposes, the performance of the Fund's benchmark (the Standard and
Poor's 500 Index ("S&P 500 Index")) is shown. This performance data repre-
sents past performance and should not be considered indicative of future per-
formance which will fluctuate with changes in market conditions. These
performance fluctuations will cause an investor's shares, when redeemed, to
be worth more or less than their original cost.
CORE U.S. Equity Fund's Lifetime Performance
Growth of a $10,000 Investment, Distributions Reinvested February 13, 1998 to
December 31, 1999
[GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE U.S. EQUITY FUND'S LIFETIME
PERFORMANCE GRAPH APPEARS HERE]
CORE U.S. Equity Fund S&P 500 Index
2/13/98 10,000 10,000
2/28/98 10,300 10,253
3/98 10,880 10,778
4/98 11,070 10,887
5/98 10,890 10,700
6/98 11,260 11,134
7/98 10,980 11,015
9/98 9,130 9,422
9/98 9,420 10,026
10/98 10,170 10,841
11/98 10,820 11,498
12/98 11,473 12,162
1/99 12,116 12,671
2/99 11,753 12,277
3/99 12,235 12,768
4/99 12,586 13,262
5/99 12,345 12,949
6/99 13,048 13,668
7/99 12,737 13,241
8/99 12,646 13,175
9/99 12,345 12,814
10/99 13,139 13,625
11/99 13,431 13,902
12/99 14,259 14,723
<TABLE>
<CAPTION>
Since Inception One year
Average Annual Total Return through December 31, 1999
<S> <C> <C> <C>
CORE U.S. Equity Fund (commenced February 13,
1998) 20.75% 24.30%
----------------------------------------------------------------------------
</TABLE>
8
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM U.S. EQUITY FUND
Statement of Investments
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - 85.6%
Airlines - 0.5%
2,600 Delta Air Lines, Inc. $ 129,512
1,400 UAL Corp.* 108,588
-----------
238,100
------------------------------------------------------------
Alcohol - 0.1%
1,700 The Seagram Co. Ltd. 76,394
------------------------------------------------------------
Apparel - 0.2%
2,400 NIKE, Inc. Class B 118,950
------------------------------------------------------------
Banks - 5.5%
5,100 AmSouth Bancorp. 98,494
9,631 Bank of America Corp. 483,356
18,900 Citigroup, Inc. 1,050,131
500 Fifth Third Bancorp 36,688
6,900 Firstar Corp. 145,762
1,800 FleetBoston Financial Corp. 62,662
3,000 PNC Bank Corp. 133,500
1,500 SouthTrust Corp. 56,719
3,500 SunTrust Banks, Inc. 240,844
600 The Bank of New York Co., Inc. 24,000
5,500 The Chase Manhattan Corp. 427,281
600 U.S. Bancorp 14,288
800 UnionBanCal Corp. 31,550
1,000 Wells Fargo Co. 40,437
-----------
2,845,712
------------------------------------------------------------
Chemicals - 1.2%
6,800 Air Products & Chemicals, Inc. 228,225
600 Avery Dennison Corp. 43,725
2,700 The Dow Chemical Co. 360,787
-----------
632,737
------------------------------------------------------------
Clothing - 0.9%
3,100 Intimate Brands, Inc. 133,687
5,900 The Limited, Inc. 255,544
2,900 The TJX Cos., Inc. 59,269
-----------
448,500
------------------------------------------------------------
Computer Hardware - 6.7%
1,700 Apple Computer, Inc.* 174,781
14,400 Cisco Systems, Inc.* 1,542,600
2,100 Dell Computer Corp.* 107,100
2,000 EMC Corp.* 218,500
2,000 Gateway, Inc.* 144,125
3,900 Hewlett-Packard Co. 444,356
2,700 Lexmark International Group, Inc.* 244,350
3,600 Pitney Bowes, Inc. 173,925
5,600 Sun Microsystems, Inc.* 433,650
-----------
3,483,387
------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Computer Software - 7.7%
2,500 Adobe Systems, Inc. $ 168,125
1,800 Computer Associates International, Inc. 125,888
7,200 International Business Machines, Inc. 777,600
17,400 Microsoft Corp.* 2,031,450
4,950 Oracle Corp.* 554,709
1,100 Unisys Corp.* 35,131
2,250 VERITAS Software Corp.* 322,031
-----------
4,014,934
-------------------------------------------------------------------
Consumer Durables - 0.5%
4,100 Whirlpool Corp. 266,756
-------------------------------------------------------------------
Defense/Aerospace - 1.0%
5,500 General Dynamics Corp. 290,125
2,425 Honeywell International, Inc. 139,892
1,400 Northrop Grumman Corp. 75,688
-----------
505,705
-------------------------------------------------------------------
Department Store - 3.0%
1,000 Costco Wholesale Corp.* 91,250
1,500 Dayton Hudson Corp. 110,156
6,900 Federated Department Stores, Inc.* 348,881
14,900 Wal-Mart Stores, Inc. 1,029,963
-----------
1,580,250
-------------------------------------------------------------------
Drugs - 5.0%
1,000 Allergan, Inc. 49,750
3,300 American Home Products Corp. 130,144
6,800 Amgen, Inc.* 408,425
1,600 Biogen, Inc.* 135,200
7,800 Bristol-Myers Squibb Co. 500,662
13,600 Merck & Co., Inc. 912,050
7,400 Pfizer, Inc. 240,038
3,300 Pharmacia & Upjohn, Inc. 148,500
2,000 Schering-Plough Corp. 84,375
-----------
2,609,144
-------------------------------------------------------------------
Electrical Equipment - 5.1%
1,600 CIENA Corp.* 92,000
800 Corning, Inc. 103,150
2,200 Eaton Corp. 159,775
1,700 Harris Corp. 45,369
400 Johnson Controls, Inc. 22,750
8,600 Lucent Technologies, Inc. 643,387
2,000 Motorola, Inc. 294,500
3,400 Nortel Networks Corp. 343,400
2,400 QUALCOMM, Inc. 422,700
2,900 Qwest Communications International, Inc.* 124,700
1,900 Scientific-Atlanta, Inc. 105,688
3,000 Solectron Corp.* 285,375
-----------
2,642,794
-------------------------------------------------------------------
Electrical Utilities - 1.2%
700 Dominion Resources, Inc. 27,475
3,000 Duke Energy Corp. 150,375
-------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM U.S. EQUITY FUND
Statement of Investments (continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Electrical Utilities - (continued)
10,500 Edison International $ 274,969
600 Entergy Corp. 15,450
2,000 FPL Group, Inc. 85,625
1,600 Texas Utilities Co. 56,900
1,400 The Southern Co. 32,900
-----------
643,694
----------------------------------------------------------
Energy Resources - 3.7%
3,100 Amerada Hess Corp. 175,925
2,500 Apache Corp. 92,344
400 Atlantic Richfield Co. 34,600
1,100 Chevron Corp. 95,288
2,500 Enron Corp. 110,937
8,956 Exxon Mobil Corp. 721,518
10,500 Royal Dutch Petroleum Co. ADR 634,593
600 Vastar Resources, Inc. 35,400
-----------
1,900,605
----------------------------------------------------------
Entertainment - 0.6%
2,600 Carnival Corp. 124,312
2,600 Metro-Goldwyn-Mayer, Inc.* 61,263
2,600 Royal Caribbean Cruises Ltd. 128,212
-----------
313,787
----------------------------------------------------------
Financial Services - 5.4%
400 American Express Co. 66,500
890 Associates First Capital Corp. 24,420
1,200 Federal Home Loan Mortgage Corp. 56,475
5,100 Federal National Mortgage Assoc. 318,431
13,700 General Electric Co. 2,120,075
2,400 Marsh & McLennan Cos., Inc. 229,650
-----------
2,815,551
----------------------------------------------------------
Food & Beverage - 2.8%
2,600 Bestfoods 136,662
7,200 ConAgra, Inc. 162,450
3,000 IBP, Inc. 54,000
11,900 Nabisco Group Holdings Corp. 126,437
2,700 Nabisco Holdings Corp. 85,388
7,300 PepsiCo, Inc. 257,325
4,300 Supervalu, Inc. 86,000
6,000 The Coca-Cola Co. 349,500
7,600 The Pepsi Bottling Group, Inc. 125,875
3,500 Tyson Foods, Inc. 56,875
-----------
1,440,512
----------------------------------------------------------
Forest - 1.2%
4,800 Georgia-Pacific Group 243,600
400 Kimberly-Clark Corp. 26,100
4,900 Weyerhaeuser Co. 351,881
-----------
621,581
----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Gas Utilities - 0.3%
3,400 El Paso Energy Corp. $ 131,963
-----------------------------------------------------------------------
Gold - 0.5%
2,000 Barrick Gold Corp. 35,375
9,900 Freeport-McMoRan Copper & Gold, Inc. Class B 209,138
------------
244,513
-----------------------------------------------------------------------
Grocery - 0.2%
300 Albertson's, Inc. 9,675
1,000 Safeway, Inc.* 35,563
3,200 The Kroger Co.* 60,400
------------
105,638
-----------------------------------------------------------------------
Heavy Electrical - 0.0%
400 Emerson Electric Co. 22,950
-----------------------------------------------------------------------
Home Products - 2.3%
2,800 Colgate-Palmolive Co. 182,000
4,200 Fortune Brands, Inc. 138,863
7,800 The Procter & Gamble Co. 854,587
------------
1,175,450
-----------------------------------------------------------------------
Industrial Parts - 1.3%
1,400 Caterpillar, Inc. 65,888
1,100 Ingersoll-Rand Co. 60,569
2,900 Parker-Hannifin Corp. 148,806
8,550 Tyco International Ltd. 332,381
1,200 United Technologies Corp. 78,000
------------
685,644
-----------------------------------------------------------------------
Industrial Services - 0.1%
1,000 The Hertz Corp. 50,125
-----------------------------------------------------------------------
Information Services - 2.9%
8,300 America Online, Inc.* 626,131
2,400 Automatic Data Processing, Inc. 129,300
1,000 DST Systems, Inc.* 76,313
1,600 Electronic Data Systems Corp. 107,100
1,900 First Data Corp. 93,694
1,000 Yahoo!, Inc.* 432,687
700 Young & Rubicam, Inc. 49,525
------------
1,514,750
-----------------------------------------------------------------------
Leisure - 1.1%
4,900 Eastman Kodak Co. 324,625
3,800 Harley-Davidson, Inc. 243,437
1,200 Hasbro, Inc. 22,875
------------
590,937
-----------------------------------------------------------------------
Life Insurance - 0.5%
2,500 Aetna, Inc. 139,532
1,500 AFLAC, Inc. 70,781
400 American General Corp. 30,350
900 Hartford Life, Inc. 39,600
------------
280,263
-----------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM U.S. EQUITY FUND
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Media - 2.3%
6,500 AT&T Corp.-Liberty Media Group* $ 368,875
700 Clear Channel Communications, Inc.* 62,475
3,800 Cox Communications, Inc.* 195,700
1,200 General Motors Corp. Class H* 115,200
2,600 Infinity Broadcasting Corp.* 94,087
3,900 MediaOne Group, Inc.* 299,569
500 Time Warner, Inc. 36,219
----------
1,172,125
--------------------------------------------------------------------
Medical Products - 2.1%
2,800 Abbott Laboratories 101,675
300 Bausch & Lomb, Inc. 20,531
3,000 Baxter International, Inc. 188,438
8,600 Johnson & Johnson 800,875
----------
1,111,519
--------------------------------------------------------------------
Medical Providers - 0.7%
3,300 Columbia/HCA Healthcare Corp. 96,731
4,600 United HealthCare Corp. 244,375
----------
341,106
--------------------------------------------------------------------
Mining - 0.2%
1,300 Alcoa, Inc. 107,900
--------------------------------------------------------------------
Motor Vehicle - 0.6%
5,500 Ford Motor Co. 293,906
500 General Motors Corp. 36,344
----------
330,250
--------------------------------------------------------------------
Oil Refining - 0.0%
300 Texaco, Inc. 16,294
--------------------------------------------------------------------
Oil Services - 0.3%
2,500 Schlumberger Ltd. 140,625
485 Transocean Sedco Forex, Inc. 16,338
----------
156,963
--------------------------------------------------------------------
Property Insurance - 2.4%
6,043 American International Group, Inc. 653,399
4,300 Loews Corp. 260,956
1,400 MGIC Investment Corp. 84,263
1,800 The Allstate Corp. 43,200
1,400 The Hartford Financial Services Group, Inc. 66,325
3,600 Travelers Property Casualty Corp. 123,300
----------
1,231,443
--------------------------------------------------------------------
Publishing - 0.3%
2,100 Dow Jones & Co., Inc. 142,800
--------------------------------------------------------------------
Railroads - 0.1%
2,200 Burlington Northern Santa Fe Corp. 53,350
--------------------------------------------------------------------
Security/Asset Management - 2.2%
3,500 AXA Financial, Inc. 118,563
2,700 Lehman Brothers Holdings, Inc. 228,656
5,600 Merrill Lynch & Co., Inc. 467,600
--------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Security/Asset Management - (continued)
1,500 Morgan Stanley Dean Witter & Co. $ 214,125
3,000 The Charles Schwab Corp. 115,125
-----------
1,144,069
----------------------------------------------------------------
Semiconductors - 4.4%
1,500 Applied Materials, Inc.* 190,031
1,100 Applied Micro Circuits Corp.* 139,975
3,800 Conexant Systems, Inc.* 252,225
900 E-Tek Dynamics, Inc.* 121,163
2,600 Integrated Device Technology, Inc.* 75,400
9,700 Intel Corp. 798,431
2,200 JDS Uniphase Corp.* 354,887
500 Linear Technology Corp. 35,781
800 LSI Logic Corp.* 54,000
2,500 Texas Instruments, Inc. 242,188
1,000 Xilinx, Inc.* 45,469
-----------
2,309,550
----------------------------------------------------------------
Specialty Retail - 1.6%
6,200 Circuit City Stores-Circuit City Group 279,387
1,200 Tandy Corp. 59,025
6,300 The Home Depot, Inc. 431,944
600 Tiffany & Co. 53,550
-----------
823,906
----------------------------------------------------------------
Telephone - 5.7%
16,965 AT&T Corp. 860,974
3,100 BCE, Inc. 279,581
2,200 Bell Atlantic Corp. 135,438
2,500 BellSouth Corp. 117,031
14,850 MCI WorldCom, Inc.* 787,978
12,222 SBC Communications, Inc. 595,822
2,700 Sprint Corp. 181,744
-----------
2,958,568
----------------------------------------------------------------
Tobacco - 0.1%
2,100 Philip Morris Cos., Inc. 48,694
----------------------------------------------------------------
Wireless - 1.1%
300 ALLTEL Corp. 24,806
1,100 Nextel Communications, Inc.* 113,438
2,000 Telephone & Data Systems, Inc. 252,000
2,000 United States Cellular Corp.* 201,875
-----------
592,119
----------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $39,158,682) $44,541,982
----------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM U.S. EQUITY FUND
Statement of Investments (continued)
December 31, 1999
The accompanying notes are an integral part of these financial statements.
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
<S> <C> <C> <C>
Repurchase Agreement - 11.7%
Joint Repurchase Agreement Account II
$6,100,000 3.16% 01/03/2000 $ 6,100,000
-----------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $6,100,000) $ 6,100,000
-----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $45,258,682) $50,641,982
-----------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
/\ A portion of this security is segregated as collateral for initial margin
requirements on futures transactions.
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
------------------------------------------------------------------------------
12
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM 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 SM Large Cap Growth Fund. This annual report covers the
year ended December 31, 1999.
Market Review
Over the year, restrained inflation, solid growth in corpo-
rate profits and gains by a few leadership sectors drove
U.S. indices to record levels. These index gains were
driven primarily by the Technology and Telecommunications
sectors. As was the case in 1998, the strong performance of
these stocks continued to be fueled by investor excitement
over the explosive growth of the Internet. In the broader
market, however, more stocks fell than rose. The NASDAQ
Composite Index, driven primarily by Technology stocks
listed on the NASDAQ Stock Market, rose 48.2% in the last
three months of the period, and an extraordinary 85.6% for
the year ended December 31, 1999. According to Frank Rus-
sell, the technology sector of the Russell 3000 (broad mar-
ket stock index) rose 38.2% in the last three months of the
year, and logged a 78.2% gain for the year. While two addi-
tional sectors--basic materials and capital goods--also
outperformed the Standard and Poor's 500, several sectors
fell sharply, such as transportation and utilities, both
down 13%, and bank stocks, down between 10% and 15% on av-
erage.
Performance Review
For the year ended December 31, 1999, the Fund generated a
35.42% aggregate total return, outperforming the 33.15% ag-
gregate total return generated by its benchmark, the Rus-
sell 1000 Growth Index.
CORE's emphasis on Value and Momentum factors helped re-
turns during the year. In general, for Russell 1000 Growth
companies, the returns to Value were higher in the early
part of the year, and detracted from return in the latter
part. Momentum, in contrast, fared well most months of the
year and surged in the last four months. However, there
were two months in which Momentum detracted substantially
from returns.
Investment Objective and Strategies
The Fund seeks long-term capital growth, primarily through
a broadly diversified portfolio of equity securities of
large cap U.S. issuers that are expected to have better
prospects for earnings growth than the growth rate of the
general domestic economy. Dividend income is a secondary
consideration.
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
13
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM LARGE CAP GROWTH FUND
Shareholder Letter (continued)
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 has the
highest expected return for the targeted amount of risk.
Portfolio Composition
Top 10 Portfolio Holdings as of December 31, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Line of Business Net Assets
------- ---------------- -------------
<S> <C> <C>
Microsoft Corp. Computer Software 6.1%
General Electric Co. Financial Services 5.8
Cisco Systems, Inc. Computer Hardware 5.3
Intel Corp. Semiconductors 3.2
The Procter & Gamble Co. Home Products 2.7
International Business
Machines, Inc. Computer Software 2.6
America Online, Inc. Information Services 2.3
Lucent Technologies, Inc. Electrical Equipment 2.3
Johnson & Johnson Medical Products 2.2
Sun Microsystems, Inc. Computer Hardware 2.2
</TABLE>
* Opinions expressed in this report represent our present
opinions only. Reference to individual securities should
not be construed as a commitment 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 a recommendation 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
Although the market's returns were driven by relatively few
stocks, and return dispersion (the difference between the
best- and worst-performing stocks) remained high during the
year, the Fund's investment process led to outperformance
versus its benchmark, as it has done in the past. 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 expect 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
January 31, 2000
14
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM LARGE CAP GROWTH FUND
Performance Summary
December 31, 1999
The following graph shows the value as of December 31, 1999, of a $10,000 in-
vestment made on February 13, 1998 (commencement of operations). For compara-
tive purposes, the performance of the Fund's benchmark (Russell 1000 Growth
Index) is shown. All performance data shown represents past performance and
should not be considered indicative of future performance which will fluctu-
ate with changes in market conditions. These performance fluctuations will
cause an investor's shares, when redeemed, to be worth more or less than
their original cost.
CORE Large Cap Growth Fund's Lifetime Performance
Growth of a $10,000 Investment, Distributions Reinvested February 13, 1998 to
December 31, 1999
[GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE LARGE
CAP GROWTH FUND'S LIFETIME PERFORMANCE GRAPH APPEARS HERE]
CORE Large Cap Russell 1000
Growth Fund Growth Index
2/13/98 10,000 10,000
2/28/98 10,330 10,271
3/98 10,830 10,681
4/98 11,050 10,828
5/98 10,750 10,521
6/98 11,260 11,166
7/98 11,000 11,092
9/98 9,059 9,427
9/98 9,449 10,151
10/98 9,939 10,967
11/98 10,749 11,802
12/98 11,699 12,866
1/99 12,371 13,622
2/99 11,791 12,999
3/99 12,513 13,684
4/99 12,644 13,702
5/99 12,334 13,281
6/99 13,167 14,211
7/99 12,827 13,759
8/99 13,067 13,983
9/99 12,808 13,690
10/99 13,551 14,723
11/99 14,304 15,517
12/99 15,856 17,130
Since Inception One year
Average Annual Total Return through December 31, 1999
CORE Large Cap Growth Fund (commenced February 13, 1998) 27.69% 35.42%
------------------------------------------------------------------------
15
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM LARGE CAP GROWTH FUND
Statement of Investments
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - 94.1%
Alcohol - 0.3%
700 Anheuser-Busch Cos., Inc. $ 49,613
800 The Seagram Co. Ltd. 35,950
----------
85,563
--------------------------------------------------------------
Apparel - 0.6%
2,900 NIKE, Inc. Class B 143,731
--------------------------------------------------------------
Banks - 0.6%
2,250 Citigroup, Inc. 125,016
1,200 Firstar Corp. 25,350
----------
150,366
--------------------------------------------------------------
Chemicals - 0.7%
1,200 The Dow Chemical Co. 160,350
--------------------------------------------------------------
Clothing - 0.4%
1,600 Intimate Brands, Inc. 69,000
1,100 Ross Stores, Inc. 19,731
----------
88,731
--------------------------------------------------------------
Computer Hardware - 11.2%
400 Apple Computer, Inc.* 41,125
12,100 Cisco Systems, Inc.* 1,296,212
1,900 Dell Computer Corp.* 96,900
2,100 EMC Corp.* 229,425
2,400 Hewlett-Packard Co. 273,450
2,800 Lexmark International Group, Inc.* 253,400
6,800 Sun Microsystems, Inc.* 526,575
----------
2,717,087
--------------------------------------------------------------
Computer Software - 12.0%
900 Adobe Systems, Inc. 60,525
100 CheckFree Holdings Corp.* 10,450
200 Inktomi Corp.* 17,750
5,800 International Business Machines, Inc. 626,400
500 Intuit, Inc.* 29,969
100 Macromedia, Inc.* 7,312
12,700 Microsoft Corp.* 1,482,725
200 Networks Associates, Inc.* 5,338
1,600 Novell, Inc.* 63,900
3,250 Oracle Corp.* 364,203
100 RealNetworks, Inc.* 12,031
200 Sterling Commerce, Inc.* 6,813
400 Synopsys, Inc.* 26,700
1,000 Unisys Corp.* 31,937
300 USWeb Corp.* 13,331
1,200 VERITAS Software Corp.* 171,750
----------
2,931,134
--------------------------------------------------------------
Consumer Durables - 0.4%
1,600 Whirlpool Corp. 104,100
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Department Store - 2.7%
1,800 Dayton Hudson Corp. $ 132,188
2,900 Federated Department Stores, Inc.* 146,631
5,400 Wal-Mart Stores, Inc. 373,275
----------
652,094
-----------------------------------------------------------
Drugs - 9.2%
1,600 Allergan, Inc. 79,600
600 American Home Products Corp. 23,663
7,800 Amgen, Inc.* 468,487
1,400 Biogen, Inc.* 118,300
8,000 Bristol-Myers Squibb Co. 513,500
1,300 Chiron Corp.* 55,088
600 Eli Lilly & Co. 39,900
900 Genzyme Corp.* 40,500
7,400 Merck & Co., Inc. 496,262
6,000 Pfizer, Inc. 194,625
1,600 Pharmacia & Upjohn, Inc. 72,000
2,300 Schering-Plough Corp. 97,031
500 Warner-Lambert Co. 40,969
----------
2,239,925
-----------------------------------------------------------
Electrical Equipment - 9.1%
800 AVX Corp. 39,950
1,200 CIENA Corp.* 69,000
200 Comverse Technology, Inc.* 28,950
900 Level 3 Communications, Inc.* 73,688
7,400 Lucent Technologies, Inc. 553,612
1,100 Motorola, Inc. 161,975
2,500 Nortel Networks Corp. 252,500
2,800 QUALCOMM, Inc. 493,150
2,300 Qwest Communications
International, Inc.* 98,900
2,100 Scientific-Atlanta, Inc. 116,813
3,100 Solectron Corp.* 294,887
700 Waters Corp.* 37,100
----------
2,220,525
-----------------------------------------------------------
Electrical Utilities - 0.2%
800 Calpine Corp.* 51,200
-----------------------------------------------------------
Energy Resources - 0.0%
300 Apache Corp. 11,081
-----------------------------------------------------------
Entertainment - 0.6%
800 Carnival Corp. 38,250
600 Royal Caribbean Cruises Ltd. 29,588
1,400 Viacom, Inc. Class B* 84,612
----------
152,450
-----------------------------------------------------------
Environmental Services - 0.2%
3,000 Republic Services, Inc. 43,125
900 Waste Management, Inc. 15,469
----------
58,594
-----------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM LARGE CAP GROWTH FUND
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Financial Services - 6.3%
9,200 General Electric Co. $1,423,700
400 Marsh & McLennan Cos., Inc. 38,275
900 Providian Financial Corp. 81,956
----------
1,543,931
--------------------------------------------------------
Food & Beverage - 2.6%
600 Coca-Cola Enterprises, Inc. 12,075
3,900 ConAgra, Inc. 87,994
1,200 H.J. Heinz Co. 47,775
3,900 IBP, Inc. 70,200
8,500 Nabisco Group Holdings Corp. 90,312
400 Nabisco Holdings Corp. 12,650
1,900 PepsiCo, Inc. 66,975
3,700 The Coca-Cola Co. 215,525
2,000 U.S. Foodservice, Inc.* 33,500
----------
637,006
--------------------------------------------------------
Forest - 0.6%
2,900 Georgia-Pacific Group 147,175
--------------------------------------------------------
Grocery - 0.8%
1,600 Safeway, Inc.* 56,900
1,600 The Kroger Co.* 30,200
1,875 Unilever NV 102,070
----------
189,170
--------------------------------------------------------
Heavy Electrical - 0.1%
600 Emerson Electric Co. 34,425
--------------------------------------------------------
Home Products - 2.8%
600 Fortune Brands, Inc. 19,837
6,000 The Procter & Gamble Co. 657,375
----------
677,212
--------------------------------------------------------
Hotels - 0.3%
2,500 Marriott International, Inc. 78,906
--------------------------------------------------------
Industrial Parts - 0.6%
1,400 Pall Corp. 30,188
2,600 Tyco International Ltd. 101,075
200 United Technologies Corp. 13,000
----------
144,263
--------------------------------------------------------
Industrial Services - 1.0%
400 Cintas Corp. 21,250
4,200 The Hertz Corp. 210,525
----------
231,775
--------------------------------------------------------
Information Services - 5.4%
7,400 America Online, Inc.* 558,237
500 At Home Corp.* 21,438
1,800 Automatic Data Processing, Inc. 96,975
300 CMGI, Inc.* 83,062
200 CNET, Inc.* 11,350
300 Computer Sciences Corp.* 28,388
100 DoubleClick, Inc.* 25,306
--------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Information Services - (continued)
100 eBay, Inc.* $ 12,519
600 Electronic Data Systems Corp. 40,162
600 Exodus Communications, Inc.* 53,287
400 First Data Corp. 19,725
115 go.com* 2,738
100 InfoSpace.com, Inc.* 21,400
200 Lycos, Inc.* 15,913
100 Network Solutions, Inc.* 21,756
100 Priceline.com, Inc.* 4,738
100 PSINet, Inc.* 6,175
100 TMP Worldwide, Inc.* 14,200
1,200 Valassis Communications, Inc.* 50,700
200 Verio, Inc.* 9,238
200 VeriSign, Inc.* 38,188
400 Yahoo!, Inc.* 173,075
----------
1,308,570
-----------------------------------------------------------
Leisure - 0.9%
3,200 Eastman Kodak Co. 212,000
500 Hasbro, Inc. 9,531
----------
221,531
-----------------------------------------------------------
Media - 2.4%
2,700 AT&T Corp.-Liberty Media Group* 153,225
1,700 Comcast Corp. 85,956
900 Fox Entertainment Group, Inc.* 22,444
2,500 General Motors Corp. Class H* 240,000
200 RCN Corp.* 9,700
700 Time Warner, Inc. 50,706
400 Tribune Co. 22,025
----------
584,056
-----------------------------------------------------------
Medical Products - 3.4%
2,800 Abbott Laboratories 101,675
2,400 Baxter International, Inc. 150,750
5,700 Johnson & Johnson 530,812
1,200 Medtronic, Inc. 43,725
----------
826,962
-----------------------------------------------------------
Medical Providers - 0.6%
1,800 United HealthCare Corp. 95,625
600 Wellpoint Health Networks, Inc.* 39,563
----------
135,188
-----------------------------------------------------------
Oil Services - 0.5%
1,572 Schlumberger Ltd. 88,425
1,005 Transocean Sedco Forex, Inc. 33,855
----------
122,280
-----------------------------------------------------------
Property Insurance - 0.9%
1,376 American International Group, Inc. 148,780
600 The PMI Group, Inc. 29,288
1,100 Travelers Property Casualty Corp. 37,675
----------
215,743
-----------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM LARGE CAP GROWTH FUND
Statement of Investments (continued)
December 31,1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Publishing - 0.2%
1,000 The New York Times Co. $ 49,125
---------------------------------------------------------------
Restaurants - 0.2%
1,100 Tricon Global Restaurants, Inc.* 42,488
---------------------------------------------------------------
Security/Asset Management - 2.1%
2,200 A.G. Edwards, Inc. 70,537
100 Ameritrade Holding Corp.* 2,169
500 E*TRADE Group, Inc.* 13,063
400 Legg Mason, Inc. 14,500
500 Lehman Brothers Holdings, Inc. 42,344
2,400 Merrill Lynch & Co., Inc. 200,400
200 Morgan Stanley Dean Witter & Co. 28,550
700 Paine Webber Group, Inc. 27,169
800 The Bear Stearns Cos., Inc. 34,200
2,100 The Charles Schwab Corp. 80,587
----------
513,519
---------------------------------------------------------------
Semiconductors - 6.8%
800 Altera Corp.* 39,650
900 Analog Devices, Inc.* 83,700
300 Applied Materials, Inc.* 38,006
200 Broadcom Corp.* 54,475
300 Conexant Systems, Inc.* 19,913
1,100 Integrated Device Technology, Inc.* 31,900
9,400 Intel Corp. 773,737
1,200 JDS Uniphase Corp.* 193,575
900 LSI Logic Corp.* 60,750
2,100 Texas Instruments, Inc. 203,437
700 Vishay Intertechnology, Inc.* 22,138
3,000 Xilinx, Inc.* 136,406
----------
1,657,687
---------------------------------------------------------------
Specialty Retail - 3.8%
500 Amazon.com, Inc.* 38,063
1,900 Barnes & Noble, Inc.* 39,187
800 BJ's Wholesale Club, Inc.* 29,200
2,700 Circuit City Stores-Circuit City Group 121,669
1,500 CVS Corp. 59,906
600 Lands' End, Inc.* 20,850
600 Lowe's Cos., Inc. 35,850
1,300 Tandy Corp. 63,944
5,700 The Home Depot, Inc. 390,806
1,300 Tiffany & Co. 116,025
----------
915,500
---------------------------------------------------------------
Telephone - 2.7%
1,800 AT&T Corp. 91,350
1,600 CenturyTel, Inc. 75,800
200 Covad Communications Group, Inc.* 11,188
1,000 GTE Corp. 70,562
5,586 MCI WorldCom, Inc.* 296,407
300 NEXTLINK Communications, Inc.* 24,919
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Telephone - (continued)
100 Rhythms NetConnections, Inc.* $ 3,100
1,400 SBC Communications, Inc. 68,250
200 Sprint Corp. 13,462
-----------
655,038
-------------------------------------------------------
Tobacco - 0.3%
3,400 Philip Morris Cos., Inc. 78,838
-------------------------------------------------------
Wireless - 0.3%
800 ALLTEL Corp. 66,150
-------------------------------------------------------
Miscellaneous - 0.3%
500 SPDR Trust ADR Series 1 73,438
-------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $16,881,525) $22,916,907
-------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
<S> <C> <C> <C>
Repurchase Agreement - 4.9%
Joint Repurchase Agreement Account II +
1,200,000 3.16% 01/03/2000 $ 1,200,000
----------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $1,200,000) $ 1,200,000
----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $18,081,525) $24,116,907
----------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
+ A portion of this security is segregated as collateral for initial margin
requirements on future transactions.
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.
18
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM 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 SM Large Cap Value Fund. This annual report covers the pe-
riod from April 1, 1999, when the Fund began operations, through December 31,
1999.
Market Review
Over the year, restrained inflation, solid growth in corpo-
rate profits and gains by a few leadership sectors drove
U.S. indices to record levels. These index gains were
driven primarily by the Technology and Telecommunications
sectors. As was the case in 1998, the strong performance of
these stocks continued to be fueled by investor excitement
over the explosive growth of the Internet. In the broader
market, however, more stocks fell than rose. The NASDAQ
Composite Index, driven primarily by Technology stocks
listed on the NASDAQ Stock Market, rose 48.2% in the last
three months of the period, and an extraordinary 85.6% for
the year ended December 31, 1999. According to Frank Rus-
sell, the technology sector of the Russell 3000 (broad mar-
ket stock index) rose 38.2% in the last three months of the
year, and logged a 78.2% gain for the year. While two addi-
tional sectors--basic materials and capital goods--also
outperformed the Standard & Poor's 500, several sectors
fell sharply, such as transportation and utilities, both
down 13%, and bank stocks, down between 10% and 15% on av-
erage.
Performance Review
From April 1, 1999 through December 31, 1999, the Fund gen-
erated a 8.99% cumulative total return. This compares to a
5.82% cumulative total return of its benchmark, the Russell
1000 Value Index.
Since the inception of the Fund, both value and momentum
factors contributed quite positively to returns. Momentum
fared well during most of the nine-month period, with the
exception of the first month. Value, in contrast, helped
returns early on, hurt returns mid-period, then surged in
the last two months.
Investment Objective and Strategies
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 analyzes the
impact of current economic conditions on different types of
stocks to determine where the emphasis should be placed.
The portfolio construction process
19
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM LARGE CAP VALUE FUND
Shareholder Letter (continued)
evaluates stocks based on their overall expected return and
their contribution to portfolio risk. The final portfolio
is the one that has the highest potential return for the
targeted amount of risk.
Portfolio Composition
Top 10 Portfolio Holdings as of December 31, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Line of Business Net Assets
------- ---------------- -------------
<S> <C> <C>
Exxon Mobil Corp. Energy 6.1%
AT&T Corp. Telephone 3.7
Citigroup, Inc. Banks 3.4
SBC Communications, Inc. Telephone 2.7
Bank of America Corp. Banks 2.2
American International Group,
Inc. Property Insurance 1.9
Chevron Corp. Energy 1.8
The Chase Manhattan Corp. Banks 1.6
The Dow Chemical Co. Chemicals 1.5
Bell Atlantic Corp. Telephone 1.4
</TABLE>
* Opinions expressed in this report represent our present
opinions only. Reference to individual securities should
not be construed as a commitment 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 a recommendation 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
Although the market's returns were driven by relatively few
stocks, and return dispersion (the difference between the
best- and worst-performing stocks) remained high during the
year, the Fund's investment process led to excess returns,
as it has done in the past. Going forward we continue to
believe that cheaper stocks should outpace more expensive
ones, good momentum stocks should do better than poor-mo-
mentum stocks, lower-risk stocks should perform better than
higher-risk stocks, as should those favored by research
analysts. As such, we anticipate remaining fully invested
and expect 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
January 31, 2000
20
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM LARGE CAP VALUE FUND
Performance Summary
December 31, 1999
The following graph shows the value as of December 31, 1999, of a $10,000 in-
vestment made on April 1, 1999 (commencement of operations). For comparative
purposes, the performance of the Fund's benchmark (the Russell 1000 Value In-
dex) is shown. This performance data represents past performance and should
not be considered indicative of future performance which will fluctuate with
changes in market conditions. These performance fluctuations will cause an
investor's shares, when redeemed, to be worth more or less than their origi-
nal cost.
CORE Large Cap Value Fund's Lifetime Performance
Growth of a $10,000 Investment, Distributions Reinvested April 1, 1999 to
December 31, 1999
[GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE LARGE CAP VALUE FUND'S LIFETIME
PERFORMANCE GRAPH APPEARS HERE]
CORE Large Cap Russell 1000
Value Fund Value Index
4/1/99 10,000 10,000
4/30/99 10,880 10,934
5/99 10,760 10,814
6/99 11,091 11,127
7/99 10,801 10,801
8/99 10,471 10,401
9/99 10,191 10,037
10/99 10,831 10,615
11/99 10,781 10,532
12/99 10,901 10,582
<TABLE>
<CAPTION>
Since Inception
Aggregate Total Return through December 31,
1999(a)
<S> <C> <C> <C>
CORE Large Cap Value
Fund (commenced April 1,
1999) 8.99%
--------------------------------------------------
</TABLE>
(a) Represents aggregate total return since the Fund has not been in
operation for a full 12 months.
21
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM LARGE CAP VALUE FUND
Statement of Investments
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - 101.0%
Airlines - 0.9%
200 America West Holdings Corp. Class B* $ 4,150
100 Delta Air Lines, Inc. 4,981
300 UAL Corp.* 23,269
----------
32,400
-------------------------------------------------------------
Alcohol - 0.4%
100 Adolph Coors Co. Class B 5,250
100 Anheuser-Busch Cos., Inc. 7,088
----------
12,338
-------------------------------------------------------------
Apparel - 0.1%
100 Springs Industries, Inc. 3,994
-------------------------------------------------------------
Banks - 14.6%
1,500 Bank of America Corp. 75,281
300 Bank One Corp. 9,619
2,100 Citigroup, Inc. 116,681
600 Comerica, Inc. 28,013
100 Cullen/Frost Bankers, Inc. 2,575
200 First Security Corp. 5,106
500 First Union Corp. 16,406
1,200 Firstar Corp. 25,350
1,000 FleetBoston Financial Corp. 34,813
200 J.P. Morgan & Co., Inc. 25,325
100 Mellon Financial Corp. 3,406
200 National City Corp. 4,738
600 SunTrust Banks, Inc. 41,287
100 The Bank of New York Co., Inc. 4,000
700 The Chase Manhattan Corp. 54,381
300 U.S. Bancorp 7,144
500 UnionBanCal Corp. 19,719
800 Wells Fargo Co. 32,350
----------
506,194
-------------------------------------------------------------
Chemicals - 3.3%
100 Air Products & Chemicals, Inc. 3,356
200 Avery Dennison Corp. 14,575
33 E.I. du Pont de Nemours & Co. 2,174
100 Kerr-McGee Corp. 6,200
100 Minnesota Mining & Manufacturing Co. 9,787
300 Praxair, Inc. 15,094
200 Rohm & Haas Co. 8,138
400 The Dow Chemical Co. 53,450
----------
112,774
-------------------------------------------------------------
Clothing - 0.1%
105 Intimate Brands, Inc. 4,528
-------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Computer Hardware - 2.8%
100 Apple Computer, Inc.* $ 10,281
100 Cisco Systems, Inc.* 10,712
100 Diebold, Inc. 2,350
400 Hewlett-Packard Co. 45,575
200 Lexmark International Group, Inc.* 18,100
200 Seagate Technology, Inc.* 9,313
----------
96,331
--------------------------------------------------------------
Computer Software - 1.3%
400 International Business Machines, Inc. 43,200
--------------------------------------------------------------
Construction - 0.1%
100 USG Corp. 4,713
--------------------------------------------------------------
Consumer Durables - 0.2%
100 Whirlpool Corp. 6,506
--------------------------------------------------------------
Defense/Aerospace - 1.1%
200 General Dynamics Corp. 10,550
100 Litton Industries, Inc.* 4,987
400 The Boeing Co. 16,625
100 TRW, Inc. 5,194
----------
37,356
--------------------------------------------------------------
Department Stores - 0.7%
100 Dayton Hudson Corp. 7,344
200 Federated Department Stores, Inc.* 10,112
200 The May Department Stores Co. 6,450
----------
23,906
--------------------------------------------------------------
Drugs - 0.4%
300 Pharmacia & Upjohn, Inc. 13,500
--------------------------------------------------------------
Electrical Equipment - 1.9%
100 Eaton Corp. 7,262
400 Johnson Controls, Inc. 22,750
200 Motorola, Inc. 29,450
100 Scientific-Atlanta, Inc. 5,563
----------
65,025
--------------------------------------------------------------
Electrical Utilities - 5.5%
100 Calpine Corp.* 6,400
100 Central & South West Corp. 2,000
200 Consolidated Edison, Inc. 6,900
300 Dominion Resources, Inc. 11,775
600 DTE Energy Co. 18,825
500 Duke Energy Corp. 25,062
900 Entergy Corp. 23,175
700 FPL Group, Inc. 29,969
200 GPU, Inc. 5,987
300 PECO Energy Co. 10,425
300 Public Service Enterprise Group, Inc. 10,444
700 Texas Utilities Co. 24,894
400 The Montana Power Co. 14,425
----------
190,281
--------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM LARGE CAP VALUE FUND
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Energy - 7.9%
700 Chevron Corp. $ 60,637
2,624 Exxon Mobil Corp. 211,396
----------
272,033
---------------------------------------------------------------------
Energy Resources - 1.4%
100 Atlantic Richfield Co. 8,650
200 Murphy Oil Corp. 11,475
100 Phillips Petroleum Co. 4,700
400 Royal Dutch Petroleum Co. ADR 24,175
----------
49,000
---------------------------------------------------------------------
Entertainment - 1.0%
200 Carnival Corp. 9,563
500 Royal Caribbean Cruises Ltd. 24,656
----------
34,219
---------------------------------------------------------------------
Financial Services - 3.0%
100 American Express Co. 16,625
100 Associates First Capital Corp. 2,744
100 Countrywide Credit Industries, Inc. 2,525
400 Federal National Mortgage Assoc. 24,975
100 General Electric Co. 15,475
100 Household International, Inc. 3,725
400 Marsh & McLennan Cos., Inc. 38,275
----------
104,344
---------------------------------------------------------------------
Food & Beverage - 1.8%
200 ConAgra, Inc. 4,513
100 Dean Foods Co. 3,975
900 IBP, Inc. 16,200
2,300 Nabisco Group Holdings Corp. 24,437
400 Nabisco Holdings Corp. 12,650
----------
61,775
---------------------------------------------------------------------
Forest - 1.2%
400 Georgia-Pacific Group 20,300
300 Weyerhaeuser Co. 21,544
----------
41,844
---------------------------------------------------------------------
Gas Utilities - 0.2%
200 El Paso Energy Corp. 7,763
---------------------------------------------------------------------
Gold - 0.9%
1,400 Freeport-McMoRan Copper & Gold, Inc. Class B 29,575
---------------------------------------------------------------------
Grocery - 0.2%
200 Albertson's, Inc. 6,450
---------------------------------------------------------------------
Heavy Electrical - 0.6%
100 Cummins Engine Co., Inc. 4,831
300 Emerson Electric Co. 17,213
----------
22,044
---------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Home Products - 0.4%
100 Fortune Brands, Inc. $ 3,306
100 The Procter & Gamble Co. 10,956
----------
14,262
------------------------------------------------------------
Hotels - 0.1%
100 Harrah's Entertainment, Inc.* 2,644
------------------------------------------------------------
Industrial Parts - 1.9%
200 American Standard Cos., Inc.* 9,175
300 Ingersoll-Rand Co. 16,519
400 Pall Corp. 8,625
100 Parker-Hannifin Corp. 5,131
400 Tecumseh Products Co. 18,875
100 United Technologies Corp. 6,500
----------
64,825
------------------------------------------------------------
Industrial Services - 0.4%
300 The Hertz Corp. 15,037
------------------------------------------------------------
Information Services - 0.5%
200 Electronic Data Systems Corp. 13,388
100 First Data Corp. 4,931
----------
18,319
------------------------------------------------------------
Leisure - 1.6%
500 Brunswick Corp. 11,125
600 Eastman Kodak Co. 39,750
200 Hasbro, Inc. 3,812
----------
54,687
------------------------------------------------------------
Life Insurance - 2.7%
300 Aetna, Inc. 16,744
300 American General Corp. 22,762
200 CIGNA Corp. 16,113
200 Conseco, Inc. 3,575
500 Hartford Life, Inc. 22,000
100 Lincoln National Corp. 4,000
300 Nationwide Financial Services, Inc. 8,381
----------
93,575
------------------------------------------------------------
Media - 3.8%
400 AT&T Corp.-Liberty Media Group* 22,700
300 Cox Communications, Inc.* 15,450
400 General Motors Corp. Class H* 38,400
600 Infinity Broadcasting Corp.* 21,712
300 MediaOne Group, Inc.* 23,044
300 The Walt Disney Co. 8,775
----------
130,081
------------------------------------------------------------
Medical Products - 2.0%
100 Abbott Laboratories 3,631
200 Bausch & Lomb, Inc. 13,687
100 Baxter International, Inc. 6,281
400 Johnson & Johnson 37,250
600 Summit Technology, Inc.* 7,013
----------
67,862
------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM LARGE CAP VALUE FUND
Statement of Investments (continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Medical Providers - 1.4%
200 Columbia/HCA Healthcare Corp. $ 5,863
100 PacifiCare Health Systems, Inc.* 5,300
100 Trigon Healthcare, Inc.* 2,950
500 United HealthCare Corp. 26,562
100 Wellpoint Health Networks, Inc.* 6,594
----------
47,269
--------------------------------------------------------------------
Mining - 1.8%
800 Alcan Aluminum, Ltd. 32,950
200 Alcoa, Inc. 16,600
200 Ball Corp. 7,875
200 Inco Ltd. 4,700
----------
62,125
--------------------------------------------------------------------
Motor Vehicle - 2.3%
300 Cooper Tire & Rubber Co. 4,669
409 Delphi Automative Systems Corp. 6,442
700 Ford Motor Co. 37,406
300 General Motors Corp. 21,806
200 Navistar International Corp.* 9,475
----------
79,798
--------------------------------------------------------------------
Oil Refining - 0.8%
492 Conoco, Inc. Class B 12,238
200 Texaco, Inc. 10,863
100 The Coastal Corp. 3,544
----------
26,645
--------------------------------------------------------------------
Oil Services - 0.7%
300 Schlumberger Ltd. 16,875
258 Transocean Sedco Forex, Inc. 8,698
----------
25,573
--------------------------------------------------------------------
Property Insurance - 5.5%
200 Ambac Financial Group, Inc. 10,438
600 American International Group, Inc. 64,875
400 Loews Corp. 24,275
100 MBIA, Inc. 5,281
200 MGIC Investment Corp. 12,037
500 The Allstate Corp. 12,000
400 The Hartford Financial Services Group, Inc. 18,950
300 The PMI Group, Inc. 14,644
800 Travelers Property Casualty Corp. 27,400
----------
189,900
--------------------------------------------------------------------
Publishing - 0.9%
100 American Greetings Corp. 2,362
100 Deluxe Corp. 2,744
100 Knight-Ridder, Inc. 5,950
100 R.R. Donnelley & Sons Co. 2,481
200 The New York Times Co. 9,825
100 The Times Mirror Co. 6,700
----------
30,062
--------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Railroads - 0.9%
800 Burlington Northern Santa Fe Corp. $ 19,400
400 Canadian National Railway Co. 10,525
----------
29,925
---------------------------------------------------------------
Restaurants - 0.2%
200 Darden Restaurants, Inc. 3,625
200 Wendy's International, Inc. 4,125
----------
7,750
---------------------------------------------------------------
Security/Asset Management - 2.7%
300 Lehman Brothers Holdings, Inc. 25,406
300 Merrill Lynch & Co., Inc. 25,050
300 Morgan Stanley Dean Witter & Co. 42,825
----------
93,281
---------------------------------------------------------------
Specialty Retail - 2.7%
300 Barnes & Noble, Inc.* 6,188
100 BJ's Wholesale Club, Inc.* 3,650
400 Circuit City Stores-Circuit City Group 18,025
200 CVS Corp. 7,988
100 Lands' End, Inc.* 3,475
100 Lowe's Cos., Inc. 5,975
100 Tandy Corp. 4,919
150 The Home Depot, Inc. 10,284
200 Tiffany & Co. 17,850
300 Zale Corp.* 14,512
----------
92,866
---------------------------------------------------------------
Telephone - 13.0%
2,550 AT&T Corp. 129,412
400 BCE, Inc. 36,075
800 Bell Atlantic Corp. 49,250
1,000 BellSouth Corp. 46,812
300 CenturyTel, Inc. 14,213
400 GTE Corp. 28,225
450 MCI WorldCom, Inc.* 23,878
100 NEXTLINK Communications, Inc.* 8,306
1,921 SBC Communications, Inc. 93,649
300 Sprint Corp. 20,194
----------
450,014
---------------------------------------------------------------
Thrifts - 0.7%
600 Golden West Financial Corp. 20,100
200 Washington Mutual, Inc. 5,200
----------
25,300
---------------------------------------------------------------
Tobacco - 0.6%
300 Philip Morris Cos., Inc. 6,956
600 UST, Inc. 15,113
----------
22,069
---------------------------------------------------------------
Wireless - 1.0%
200 Telephone & Data Systems, Inc. 25,200
100 United States Cellular Corp.* 10,094
----------
35,294
---------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM LARGE CAP VALUE FUND
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Miscellaneous - 0.8%
200 SPDR Trust ADR Series 1 $ 29,375
------------------------------------------------
TOTAL COMMON STOCKS
(Cost $3,359,448) $3,490,631
------------------------------------------------
TOTAL INVESTMENTS
(Cost $3,359,448) $3,490,631
------------------------------------------------
</TABLE>
* Non-income producing security.
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.
25
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM 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 SM Small Cap Equity Fund. This annual report covers the
year ended December 31, 1999.
Market Review
Over the year, restrained inflation, solid growth in corpo-
rate profits and gains by a few leadership sectors drove
U.S. indices to record levels. These index gains were
driven primarily by the Technology and Telecommunications
sectors. As was the case in 1998, the strong performance of
these stocks continued to be fueled by investor excitement
over the explosive growth of the Internet. In the broader
market, however, more stocks fell than rose. The NASDAQ
Composite Index, driven primarily by Technology stocks
listed on the NASDAQ Stock Market, rose 48.2% in the last
three months of the period, and an extraordinary 85.6% for
the year ended December 31, 1999. According to Frank Rus-
sell, the technology sector of the Russell 3000 (broad mar-
ket stock index) rose 38.2% in the last three months of the
year, and logged a 78.2% gain for the year. While two addi-
tional sectors--basic materials and capital goods--also
outperformed the Standard & Poor's 500, several sectors
fell sharply, such as transportation and utilities, both
down 13%, and bank stocks, down between 10% and 15% on av-
erage.
Performance Review
For the year ended December 31, 1999, the Fund generated a
17.54% aggregate total return. Over the same time period,
the Fund's benchmark, the Russell 2000 Index, generated an
aggregate total return of 21.26%.
The Russell 2000 Index was difficult to beat over this pe-
riod. Index returns were driven by very few stocks, and
there was an unusually wide spread between the best and
worst performing stocks. Thus, the chances of selecting the
best opportunities were lower than average, and the penalty
for making the wrong choice was higher than average. CORE's
preference for stocks that appear to be good values had the
biggest negative impact on returns--the return spread be-
tween the Russell 2000 Growth index and the Russell 2000
Value index (which together comprise the Russell 2000) was
33 percentage points, indicating the market's strong dis-
taste for value.
Investment Objective and Strategies
The Fund seeks long-term capital growth, primarily through
a broadly diversified portfolio of equity securities of
U.S. issuers which are included in the Russell 2000 Index
at the time of investment.
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 crite-
26
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM SMALL CAP EQUITY FUND
ria, including valuation measures, growth expectations,
earnings momentum and risk profile. It also objectively
analyzes the impact of current economic conditions on dif-
ferent types of stocks to determine where the emphasis
should be placed. The portfolio construction process evalu-
ates stocks based on their overall expected return and
their contribution to portfolio risk. The final portfolio
is the one that has the highest potential return for the
targeted amount of risk.
Portfolio Composition
Top 10 Portfolio Holdings as of December 31, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Line of Business Net Assets
------- ---------------- -------------
<S> <C> <C>
BroadVision, Inc. Computer Software 0.9%
MicroStrategy, Inc. Computer Software 0.8
InterDigital
Communications Corp. Electrical Equipment 0.7
Springs Industries, Inc. Apparel 0.5
Dollar Thrifty Automotive
Group, Inc. Industrial Services 0.5
Lam Research Corp. Semiconductors 0.5
VerticalNet, Inc. Information Services 0.5
Affiliated Managers
Group, Inc. Security/Asset Management 0.5
BancWest Corp. Banks 0.5
CK Witco Corp. Chemicals 0.5
</TABLE>
* Opinions expressed in this report represent our present
opinions only. Reference to individual securities should
not be construed as a commitment 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 a recommendation 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
The market's returns were driven by relatively few stocks,
and return dispersion (the difference between the best- and
worst-performing stocks) remained high during the year. Go-
ing 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 favored by research analysts. As such, we an-
ticipate remaining fully invested and expect 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
January 31, 2000
27
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM SMALL CAP EQUITY FUND
Performance Summary
December 31, 1999
The following graph shows the value as of December 31, 1999, of a $10,000 in-
vestment made February 13, 1998 (commencement of operations). For comparative
purposes, the performance of the Fund's benchmark (Russell 2000 Index) is
shown. All performance data shown represents past performance and should not
be considered indicative of future performance which will fluctuate with
changes in market conditions. These performance fluctuations will cause an
investor's shares, when redeemed, to be worth more or less than their origi-
nal cost.
CORE Small Cap Equity Fund's Lifetime Performance
Growth of a $10,000 investment, Distributions Reinvested February 13, 1998 to
December 31, 1999
[GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SMALL CAP EQUITY FUND'S
LIFETIME PERFORMANCE GRAPH APPEARS HERE]
CORE Small Cap Russell
Equity Fund 2000 Index
2/13/98 10,000 10,000
2/28/98 10,160 10,221
3/98 10,720 10,642
4/98 10,920 10,701
5/98 10,440 10,124
6/98 10,520 10,145
7/98 9,650 9,323
8/98 7,640 7,513
9/98 7,860 8,101
10/98 7,990 8,432
11/98 8,499 8,873
12/98 9,070 9,423
1/99 9,010 9,548
2/99 8,248 8,775
3/99 8,308 8,911
4/99 8,990 9,710
5/99 9,091 9,852
6/99 9,563 10,297
7/99 9,402 10,015
8/99 9,142 9,644
9/99 9,152 9,646
10/99 9,111 9,686
11/99 9,623 10,264
12/99 10,663 11,428
<TABLE>
<CAPTION>
Since Inception One year
Average Annual Total Return through December 31,
1999
<S> <C> <C>
CORE Small Cap Equity Fund (commenced February 13,
1998) 3.46% 17.54%
-----------------------------------------------------------------------------
</TABLE>
28
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM SMALL CAP EQUITY FUND
Statement of Investments
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - 83.3%
Airlines - 0.7%
800 Alaska Air Group, Inc.* $ 28,100
1,100 America West Holdings Corp. Class B* 22,825
500 Amtran, Inc.* 9,688
1,900 Frontier Airlines, Inc.* 21,612
400 SkyWest, Inc. 11,200
----------
93,425
-------------------------------------------------------------
Alcohol - 0.1%
500 The Robert Mondavi Corp.* 17,375
-------------------------------------------------------------
Apparel - 1.1%
1,400 K-Swiss, Inc. 26,009
1,500 Phillips-Van Heusen Corp. 12,469
700 Quiksilver, Inc.* 10,850
1,700 Springs Industries, Inc. 67,894
400 The Timberland Co.* 21,150
900 Wellman, Inc. 16,762
----------
155,134
-------------------------------------------------------------
Banks - 3.6%
600 BancFirst Ohio Corp. 13,800
3,200 BancWest Corp. 62,400
900 Banknorth Group, Inc. 24,075
500 Century South Banks Inc. 11,188
420 Commerce Bancorp, Inc. 16,984
700 Community Trust Bancorp, Inc. 14,000
1,109 F&M National Corp. 30,567
300 First Citizens BancShares, Inc. 20,925
1,100 First United Bancshares, Inc. 14,712
1,209 Hudson United Bancorp 30,905
600 Independence Community Bank Corp. 7,500
300 Investors Financial Services Corp. 13,800
955 NBT Bancorp, Inc. 14,802
300 Net.B@nk, Inc.* 5,550
1,400 OceanFirst Financial Corp. 24,237
400 One Valley Bancorp, Inc. 12,250
1,900 Republic Bancshares, Inc.* 23,750
1,459 Sky Financial Group, Inc. 29,362
1,000 Southwest Bancorp of Texas, Inc.* 19,812
1,800 Telebanc Financial Corp.* 46,800
500 United Bankshares, Inc. 11,938
1,400 United Community Financial Corp. 13,913
500 UST Corp. 15,875
----------
479,145
-------------------------------------------------------------
Chemicals - 1.9%
1,200 A. Schulman, Inc. 19,575
1,000 Airgas, Inc.* 9,500
1,600 Arch Chemicals, Inc. 33,500
700 ATMI, Inc.* 23,144
4,600 CK Witco Corp. 61,525
600 H.B. Fuller Co. 33,562
400 Ionics, Inc.* 11,250
1,000 Octel Corp.* 10,375
-------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Chemicals - (continued)
1,000 Spartech Corp. $ 32,250
700 The Dexter Corp. 27,825
----------
262,506
--------------------------------------------------------------
Clothing - 0.2%
300 AnnTaylor Stores Corp.* 10,331
1,300 The Cato Corp. 16,413
----------
26,744
--------------------------------------------------------------
Computer Hardware - 3.3%
600 Advanced Digital Information Corp.* 29,175
400 Ancor Communications, Inc.* 27,150
500 Auspex Systems, Inc. 5,125
300 Black Box Corp.* 20,100
800 CompuCom Systems, Inc.* 3,300
500 Daisytek International Corp.* 11,656
200 Digital River, Inc.* 6,663
400 Echelon Corp.* 7,825
300 Emulex Corp.* 33,750
1,000 Gerber Scientific, Inc. 21,937
200 Identix, Inc.* 1,813
1,000 Imation Corp.* 33,562
800 In Focus Systems, Inc.* 18,550
700 InaCom Corp.* 5,119
200 Intraware, Inc.* 15,987
300 Kronos, Inc.* 18,000
300 Merisel, Inc.* 394
600 MTI Technology Corp.* 22,125
100 Netopia, Inc.* 5,431
300 Network Equipment Technologies, Inc.* 3,544
300 Proxim, Inc.* 33,000
300 RadiSys Corp.* 15,300
400 RSA Security, Inc.* 31,000
400 SanDisk Corp.* 38,500
300 SoftNet Systems, Inc.* 7,538
400 Zebra Technologies Corp.* 23,400
----------
439,944
--------------------------------------------------------------
Computer Software - 9.8%
500 Actuate Corp.* 21,437
300 Advent Software, Inc.* 19,331
100 Allaire Corp.* 14,631
300 Aspect Development, Inc. 20,550
300 Aspen Technology, Inc.* 7,931
1,100 Avant! Corp.* 16,500
400 AVT Corp.* 18,800
600 Aware, Inc.* 21,825
400 Axent Technologies, Inc.* 8,400
500 BindView Development Corp.* 24,844
700 BroadVision, Inc.* 119,044
600 CACI International, Inc.* 13,575
300 Clarify, Inc.* 37,800
300 Concord Communications, Inc.* 13,313
300 CyberCash, Inc.* 2,775
--------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
29
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM SMALL CAP EQUITY FUND
Statement of Investments (continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Computer Software - (continued)
600 Dendrite International, Inc.* $ 20,325
300 Entrust Technologies, Inc.* 17,981
200 Excalibur Technologies Corp.* 4,125
1,200 FileNET Corp.* 30,600
300 Genesys Telecommunication Laboratories, Inc.* 16,200
500 Harbinger Corp.* 15,906
300 HNC Software, Inc.* 31,725
900 Hyperion Solutions Corp.* 39,150
800 InfoCure, Corp.* 24,950
2,800 Informix Corp.* 32,025
300 Integrated Systems, Inc.* 10,069
300 Intergraph Corp.* 1,406
300 ISS Group, Inc.* 21,338
400 Learn2.com, Inc.* 1,313
300 MAPICS, Inc.* 3,788
3,100 Mentor Graphics Corp.* 40,881
400 Mercury Interactive Corp.* 43,175
200 Micromuse, Inc.* 34,000
500 MicroStrategy, Inc.* 105,000
800 Midway Games, Inc.* 19,150
800 National Computer Systems, Inc. 30,100
200 Net Perceptions, Inc.* 8,400
400 Open Market, Inc.* 18,050
400 Peregrine Systems, Inc.* 33,675
600 Progress Software Corp.* 34,050
400 Project Software & Development, Inc.* 22,200
800 Radiant Systems, Inc.* 32,150
400 Rare Medium Group, Inc.* 13,650
200 Razorfish, Inc.* 19,025
500 Remedy Corp.* 23,687
466 S1 Corp.* 36,406
300 Sagent Technology, Inc.* 8,981
200 Sanchez Computer Associates, Inc.* 8,238
300 Spyglass, Inc.* 11,377
300 SVI Holdings, Inc.* 3,600
1,300 Sybase, Inc.* 22,100
700 The Titan Corp.* 32,987
400 Transaction Systems Architects, Inc.* 11,200
700 Tyler Technologies, Inc.* 3,850
800 Unigraphics Solutions, Inc.* 21,600
200 USinternetworking, Inc.* 13,975
300 Verity, Inc.* 12,769
400 Visual Networks, Inc.* 31,700
----------
1,327,633
----------------------------------------------------------------------
Construction - 3.2%
2,700 D.R. Horton, Inc. 37,294
700 Dal-Tile International, Inc.* 7,087
1,300 EMCOR Group, Inc.* 23,725
1,100 Fleetwood Enterprises, Inc. 22,687
400 Florida Rock Industries, Inc. 13,775
700 Granite Construction, Inc. 12,906
600 Group Maintenance America Corp.* 6,413
2,300 Integrated Electrical Services, Inc.* 23,144
800 Jacobs Engineering Group, Inc.* 26,000
1,500 Kaufman & Broad Home Corp. 36,281
----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
Common Stocks - (continued)
Construction - (continued)
1,100 LNR Property Corp. $ 21,862
1,300 M.D.C. Holdings, Inc. 20,394
1,600 NCI Building Systems, Inc.* 29,600
400 NVR, Inc.* 19,100
800 Pulte Corp. 18,000
600 Quanta Services, Inc.* 16,950
2,400 Standard Pacific Corp. 26,400
1,900 Sunterra Corp.* 21,850
1,100 The Ryland Group, Inc. 25,369
700 U.S. Home Corp.* 17,894
----------
426,731
----------------------------------------------------------
Consumer Durables - 0.8%
600 Applied Power, Inc. 22,050
4,200 Fedders Corp. 23,100
900 Furniture Brands International, Inc.* 19,800
1,100 La-Z-Boy, Inc. 18,494
700 Salton, Inc.* 23,406
----------
106,850
----------------------------------------------------------
Defense/Aerospace - 0.1%
750 AAR Corp. 13,453
----------------------------------------------------------
Department Store - 0.3%
1,100 Shopko Stores, Inc.* 25,300
600 Value City Department Stores, Inc.* 9,075
----------
34,375
----------------------------------------------------------
Drugs - 4.2%
200 Affymetrix, Inc.* 33,938
1,700 Alpharma, Inc. 52,275
1,800 AmeriSource Health Corp.* 27,338
1,533 Bindley Western Industries, Inc. 23,091
700 Cambrex Corp. 24,106
400 Celgene Corp.* 28,000
700 ChiRex, Inc.* 10,238
1,200 Dura Pharmaceuticals, Inc.* 16,725
600 Gilead Sciences, Inc.* 32,475
3,700 Herbalife International, Inc. 53,187
300 Human Genome Sciences, Inc.* 45,787
1,000 Jones Pharma, Inc. 43,437
700 Medco Research, Inc.* 21,044
500 Millennium Pharmaceutical, Inc.* 61,000
1,700 NBTY, Inc.* 19,656
800 Neurogen Corp.* 13,200
2,900 Perrigo Co.* 23,200
300 Pharmacyclics, Inc.* 12,375
586 Priority Healthcare Corp. Class B* 16,957
300 Syncor International Corp.* 8,738
----------
566,767
----------------------------------------------------------
Electrical Equipment - 7.4%
1,200 Advanced Fibre Communications, Inc.* 53,625
700 Amphenol Corp.* 46,594
900 Andrew Corp.* 17,044
300 ANTEC Corp.* 10,950
----------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM SMALL CAP EQUITY FUND
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
Common Stocks - (continued)
Electrical Equipment - (continued)
400 Artesyn Technologies, Inc.* $ 8,400
900 Aspect Communications Corp.* 35,212
3,000 BMC Industries, Inc. 14,625
600 C-Cube Microsystems, Inc.* 37,350
500 Checkpoint Systems, Inc.* 5,094
300 Credence Systems Corp.* 25,950
500 Dionex Corp.* 20,594
300 Hadco Corp.* 15,300
400 Harmonic, Inc.* 37,975
300 Innovex, Inc. 2,813
500 Inter-Tel, Inc. 12,500
1,300 InterDigital Communications Corp.* 97,500
700 KEMET Corp.* 31,544
700 Kimball International, Inc. Class B 11,550
500 Littelfuse, Inc.* 12,133
1,000 LTX Corp.* 22,375
700 Methode Electronics, Inc. 22,487
400 Molecular Devices Corp.* 20,800
600 MRV Communications, Inc.* 37,725
200 Optical Coating Laboratory, Inc. 59,200
1,000 PairGain Technologies, Inc.* 14,187
800 Park Electrochemical Corp. 21,250
400 Pinnacle Systems, Inc.* 16,275
1,000 Pioneer-Standard Electronics, Inc. 14,437
400 Power-One, Inc.* 18,325
500 Powerwave Technologies, Inc.* 29,187
700 Primex Technologies, Inc. 14,525
600 Roper Industries, Inc. 22,687
500 Sawtek, Inc.* 33,281
1,500 Sensormatic Electronics Corp.* 26,156
600 Tektronix, Inc. 23,325
500 Thermo BioAnalysis Corp.* 9,188
300 Trimble Navigation Ltd.* 6,488
100 Tut Systems, Inc.* 5,363
700 Vicor Corp.* 28,350
1,500 World Access, Inc.* 28,875
400 Xircom, Inc.* 30,000
----------
1,001,239
--------------------------------------------------------
Electrical Utilities - 1.1%
1,100 Eastern Utilities Associates 33,344
1,400 Hawaiian Electric Industries, Inc. 40,425
1,900 Public Service Co. of New Mexico 30,875
700 The United Illuminating Co. 35,962
300 TNP Enterprises, Inc. 12,375
----------
152,981
--------------------------------------------------------
Energy Resources - 0.7%
900 Berry Petroleum Co. 13,613
1,200 Forest Oil Corp.* 15,825
600 HS Resources, Inc.* 10,350
1,000 Mitchell Energy & Development Corp. 22,062
1,200 Southwestern Energy Co. 7,875
300 St. Mary Land & Exploration Co. 7,425
1,100 Tom Brown, Inc.* 14,713
----------
91,863
--------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
Common Stocks - (continued)
Entertainment - 0.1%
700 Handleman Co.* $ 9,363
---------------------------------------------------------------
Financial Services - 1.9%
1,600 Advanta Corp. 29,200
1,200 AmeriCredit Corp.* 22,200
600 Arthur J. Gallagher & Co. 38,850
3,200 Credit Acceptance Corp.* 11,800
400 E.W. Blanch Holdings, Inc. 24,500
500 FiNet.com, Inc.* 656
1,600 First Sierra Financial, Inc.* 27,400
1,000 Hilb, Rogal & Hamilton Co. 28,250
800 Metris Cos., Inc. 28,550
400 NCO Group, Inc.* 12,050
1,900 Security Capital Group, Inc. Class B* 23,750
800 United Payors & United Providers, Inc.* 13,250
----------
260,456
---------------------------------------------------------------
Food & Beverage - 1.1%
300 Agribrands International, Inc.* 13,800
1,000 Corn Products International, Inc. 32,750
1,100 Fleming Cos., Inc. 11,275
600 J & J Snack Foods Corp.* 12,300
1,700 Pilgrim's Pride Corp. 14,131
900 Smithfield Foods, Inc.* 21,600
500 Suiza Foods Corp.* 19,813
1,100 The J.M. Smucker Co. 21,450
----------
147,119
---------------------------------------------------------------
Forest - 0.9%
1,600 ACX Technologies, Inc. 17,100
1,700 Lydall, Inc.* 11,263
800 P.H. Glatfeller Co. 11,650
2,600 Schweitzer-Mauduit International, Inc. 34,937
500 Trex Co., Inc.* 13,375
700 United Stationers, Inc.* 19,994
700 Wausau-Mosinee Paper Corp. 8,181
----------
116,500
---------------------------------------------------------------
Gas Utilities - 1.4%
1,400 AGL Resources, Inc. 23,800
600 Aquarion Co. 22,200
700 California Water Services Group 21,219
700 Cascade Natural Gas Corp. 11,288
1,100 Equitable Resources, Inc. 36,712
800 Laclede Gas Co. 17,300
1,300 Northwest Natural Gas Co. 28,519
900 Oneok, Inc. 22,612
400 UGI Corp. 8,175
----------
191,825
---------------------------------------------------------------
Grocery - 0.2%
1,200 The Great Atlantic & Pacific Tea Co., Inc. 33,450
---------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
31
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM SMALL CAP EQUITY FUND
Statement of Investments (continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
Common Stocks - (continued)
Heavy Electrical - 0.8%
1,700 A.O. Smith Corp. $ 37,188
600 Anicom, Inc.* 2,550
900 Belden, Inc. 18,900
900 Cable Design Technologies Corp.* 20,700
2,800 Foster Wheeler Corp. 24,850
----------
104,188
-----------------------------------------------------------
Heavy Machinery - 0.4%
400 NACCO Industries, Inc. 22,225
1,100 Trinity Industries, Inc. 31,281
----------
53,506
-----------------------------------------------------------
Home Products - 0.5%
800 Church & Dwight Co., Inc. 21,350
3,200 Nature's Sunshine Products, Inc. 25,600
1,100 Playtex Products, Inc.* 16,913
----------
63,863
-----------------------------------------------------------
Hotels - 0.4%
800 Argosy Gaming Co.* 12,450
2,000 Aztar Corp.* 21,750
2,700 Boyd Gaming Corp.* 15,694
----------
49,894
-----------------------------------------------------------
Industrial Parts - 2.6%
1,600 Blount International, Inc.* 25,500
1,200 Donaldson Co., Inc. 28,875
500 Helix Technology Corp. 22,406
4,800 JLK Direct Distribution, Inc.* 49,500
1,100 Kennametal, Inc. 36,987
700 Robbins & Myers, Inc. 15,838
900 The Manitowoc Co., Inc. 30,600
1,500 The Timken Co. 30,656
1,600 The Toro Co. 59,700
700 Thomas Industries, Inc. 14,306
700 Trigen Energy Corp. 12,163
1,700 Watts Industries, Inc. 25,075
----------
351,606
-----------------------------------------------------------
Industrial Services - 1.9%
800 Aaron Rents, Inc. 14,200
1,100 Avis Rent A Car, Inc.* 28,119
1,200 Chemed Corp. 34,350
2,800 Dollar Thrifty Automotive Group, Inc.* 67,025
700 Interim Services, Inc.* 17,325
1,000 Metamor Worldwide, Inc.* 29,125
2,800 Olsten Corp. 31,675
2,000 Rollins Truck Leasing Corp. 23,875
1,000 The Wackenhut Corp. 14,937
----------
260,631
-----------------------------------------------------------
Information Services - 5.2%
200 24/7 Media, Inc.* 11,250
600 Advo, Inc.* 14,250
500 American Management Systems, Inc.* 15,687
-----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Information Services - (continued)
300 Analysts International Corp. $ 3,750
700 Bell & Howell Co.* 22,269
300 Cognizant Technology Solutions Corp.* 32,794
500 Concentric Network Corp.* 15,406
500 Data Broadcasting Corp.* 4,125
300 Diamond Technology Partners, Inc.* 25,781
500 F.Y.I., Inc.* 17,000
500 Fair Isaac & Co., Inc. 26,500
300 Go2Net, Inc.* 26,100
1,300 infoUSA, Inc.* 18,119
100 InterVU, Inc.* 10,500
500 Iron Mountain, Inc.* 19,656
200 iVillage, Inc.* 4,050
1,100 Lason, Inc.* 12,100
200 Launch Media, Inc.* 3,788
100 MarketWatch.com Inc.* 3,650
300 MAXIMUS, Inc.* 10,181
800 MedQuist, Inc.* 20,650
200 Metricom, Inc.* 15,725
200 Mpath Interactive, Inc.* 5,325
200 Multex.com, Inc.* 7,525
1,500 Navigant Consulting, Inc.* 16,312
100 NBC Internet, Inc.* 7,725
1,100 NFO Worldwide, Inc.* 24,612
300 OneMain.com, Inc.* 4,500
300 Pegasus Systems, Inc.* 18,094
700 Pre-Paid Legal Services, Inc.* 16,800
200 Preview Travel, Inc.* 10,425
100 Proxicom, Inc.* 12,431
200 SportsLine.com, Inc.* 10,025
1,300 Staff Leasing, Inc.* 12,350
700 Technology Solutions Co.* 22,925
200 Telescan, Inc.* 4,938
400 The Profit Recovery Group International, Inc.* 10,625
700 True North Communications, Inc. 31,281
900 URS Corp.* 19,519
1,800 Veritas DGC, Inc.* 25,200
400 VerticalNet, Inc.* 65,600
1,200 West TeleServices Corp.* 29,325
200 WorldGate Communications, Inc.* 9,513
200 Ziff-Davis, Inc.-ZDNet* 4,200
----------
702,581
-----------------------------------------------------------------------
Leisure - 0.9%
1,100 Callaway Golf Co. 19,456
900 Dover Downs Entertainment, Inc. 16,875
300 Harman International Industries, Inc. 16,837
500 Hollywood Park, Inc.* 11,219
600 JAKKS Pacific, Inc.* 11,213
800 Russ Berrie & Co., Inc. 21,000
1,400 Station Casinos, Inc.* 31,412
----------
128,012
-----------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
32
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM SMALL CAP EQUITY FUND
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Life Insurance - 0.5%
746 Delphi Financial Group, Inc. $ 22,380
1,000 FBL Financial Group, Inc. 20,000
900 The MONY Group, Inc. 26,269
----------
68,649
----------------------------------------------------------------
Media - 1.4%
1,700 Ascent Entertainment Group, Inc.* 21,569
500 Cumulus Media, Inc.* 25,375
300 Emmis Communications Corp. 37,392
400 Entercom Communications Corp.* 26,400
600 Playboy Enterprises, Inc. Class B* 14,587
800 Westwood One, Inc.* 60,800
----------
186,123
----------------------------------------------------------------
Medical Products - 1.7%
600 Analogic Corp. 19,800
1,100 Diagnostic Products Corp. 26,950
600 Haemonetics Corp.* 14,288
400 IDEC Pharmaceuticals Corp.* 39,300
700 Mentor Corp. 18,069
2,800 Owens & Minor, Inc. 25,025
500 Scott Technologies, Inc.* 9,438
1,800 Sola International, Inc.* 24,975
1,400 Summit Technology, Inc.* 16,362
600 The Cooper Cos., Inc. 18,075
600 Varian Medical Systems, Inc. 17,887
----------
230,169
----------------------------------------------------------------
Medical Providers - 0.8%
2,100 AmeriPath, Inc.* 17,194
1,500 Apria Healthcare Group, Inc.* 26,906
1,300 Quest Diagnostics, Inc.* 39,731
4,100 Sierra Health Services, Inc.* 27,419
----------
111,250
----------------------------------------------------------------
Mining - 2.1%
1,800 Arch Coal, Inc. 20,363
1,400 Commercial Metals Co. 47,512
2,100 CONSOL Energy, Inc. 21,262
3,300 National Steel Corp. Class B 24,544
1,100 Pitt-Des Moines, Inc. 27,087
1,500 Quanex Corp. 38,250
900 Reliance Steel & Aluminum Corp. 21,094
600 Ryerson Tull, Inc. 11,663
6,000 USEC, Inc. 42,000
2,000 Worthington Industries, Inc. 33,125
----------
286,900
----------------------------------------------------------------
Motor Vehicle - 0.8%
2,900 Collins & Aikman Corp. 16,675
1,304 Dura Automotive Systems, Inc.* 22,738
1,000 Group 1 Automotive, Inc.* 13,938
600 Superior Industries International, Inc. 16,088
1,500 Tower Automotive, Inc.* 23,156
900 Winnebago Industries, Inc. 18,056
----------
110,651
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Oil Refining - 0.5%
1,400 NorthWestern Corp. $ 30,800
2,300 TransMontaigne, Inc.* 16,100
1,100 Western Gas Resources, Inc. 14,506
----------
61,406
---------------------------------------------------------------
Oil Services - 0.9%
1,300 Helmerich & Payne, Inc. 28,356
6,000 Parker Drilling Co.* 19,125
1,900 Pride International, Inc.* 27,788
3,700 Seitel, Inc. 24,975
2,300 Varco International, Inc.* 23,431
----------
123,675
---------------------------------------------------------------
Property Insurance - 1.7%
715 ACE Ltd. 11,932
1,100 Argonaut Group, Inc. 21,862
500 Chicago Title Corp. 23,125
1,200 Enhance Financial Services Group, Inc. 19,500
1,600 LandAmerica Financial Group, Inc. 29,400
1,000 PMA Capital Corp. 19,875
700 Radian Group, Inc. 33,425
400 SCPIE Holdings, Inc. 12,850
1,500 Stewart Information Services Corp. 19,969
2,600 The First American Financial Corp. 32,337
400 The Midland Co. 8,300
----------
232,575
---------------------------------------------------------------
Publishing - 0.8%
1,700 Paxar Corp.* 14,344
1,000 Pulitzer, Inc. 40,312
800 The Standard Register Co. 15,500
900 Wallace Computer Services, Inc. 14,963
1,200 Ziff-Davis, Inc.-ZD* 18,975
----------
104,094
---------------------------------------------------------------
Restaurants - 0.8%
1,200 Buffets, Inc.* 12,000
300 CEC Entertainment, Inc.* 8,512
1,200 RARE Hospitality International, Inc.* 25,969
800 Ruby Tuesday, Inc. 14,550
2,100 Ryan's Family Steak Houses, Inc.* 17,850
850 Sonic Corp.* 24,225
----------
103,106
---------------------------------------------------------------
Security/Asset Management - 1.4%
1,600 Affiliated Managers Group, Inc.* 64,700
2,200 Jefferies Group, Inc. 48,400
1,710 Southwest Securities Group, Inc. 46,811
800 The John Nuveen Co. 28,850
----------
188,761
---------------------------------------------------------------
Semiconductors - 5.1%
500 Alpha Industries, Inc.* 28,656
1,400 Amkor Technology, Inc.* 39,550
500 ANADIGICS, Inc.* 23,594
700 Cohu, Inc. 21,700
---------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
33
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM SMALL CAP EQUITY FUND
Statement of Investments (continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Semiconductors - (continued)
500 CTS Corp. $ 37,688
1,800 Cypress Semiconductor Corp.* 58,275
500 Dallas Semiconductor Corp. 32,219
400 Etec Systems, Inc.* 17,950
500 General Semiconductor, Inc.* 7,094
2,000 Integrated Device Technology, Inc.* 58,000
1,500 International Rectifier Corp.* 39,000
1,600 Kent Electronics Corp.* 36,400
600 Lam Research Corp.* 66,937
700 Lattice Semiconductor Corp.* 32,988
500 Maker Communications, Inc.* 21,375
400 NeoMagic Corp.* 4,375
700 PerkinElmer, Inc.* 29,181
500 The DII Group, Inc.* 35,484
400 TranSwitch Corp.* 29,025
300 TriQuint Semiconductor, Inc.* 33,375
1,000 Varian Semiconductor Equipment Associates, Inc.* 34,000
----------
686,866
-------------------------------------------------------------------------
Specialty Retail - 2.9%
1,800 Bandag, Inc. 45,000
300 barnesandnoble.com, Inc.* 4,256
400 Beyond.com Corp.* 3,125
1,100 Borders Group, Inc.* 17,669
300 CDnow, Inc.* 2,963
300 Cyberian Outpost, Inc.* 2,981
1,300 Genesco, Inc.* 16,900
1,200 Haverty Furniture Cos., Inc. 15,150
500 Hollywood Entertainment Corp.* 7,250
400 Insight Enterprises, Inc.* 16,250
600 InterTAN, Inc.* 15,675
3,400 Jo-Ann Stores, Inc.* 38,250
400 Lands' End, Inc.* 13,900
800 Michaels Stores, Inc.* 22,800
600 Micro Warehouse, Inc.* 11,100
5,600 OfficeMax, Inc.* 30,800
1,600 PETCO Animal Supplies, Inc.* 23,800
1,300 School Specialty, Inc.* 19,662
5,500 Spiegel, Inc.* 38,672
1,300 The Pep Boys-Manny, Moe & Jack 11,863
600 ValueVision International, Inc.* 34,387
----------
392,453
-------------------------------------------------------------------------
Telephone - 1.2%
600 CapRock Communications Corp.* 19,462
600 Dycom Industries, Inc.* 26,437
800 e.spire Communications, Inc. 4,650
700 Intermedia Communications, Inc.* 27,169
600 ITC DeltaCom, Inc.* 16,575
300 MGC Communications, Inc.* 15,225
200 NorthEast Optic Network, Inc.* 12,513
500 TALK.com, Inc.* 8,875
900 U.S. LEC Corp.* 29,025
----------
159,931
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Thrifts - 1.8%
800 Bank United Corp. $ 21,800
3,600 Bay View Capital Corp. 51,075
3,000 Capitol Federal Financial 29,250
900 Downey Financial Corp. 18,169
1,200 Oriental Financial Group, Inc. 26,475
500 Reliance Bancorp, Inc. 17,250
2,100 Republic Security Financial Corp. 15,028
2,200 Richmond County Financial Corp. 39,737
1,200 Staten Island Bancorp, Inc. 21,600
-----------
240,384
------------------------------------------------------------
Tobacco - 0.2%
1,000 Universal Corp. 22,813
------------------------------------------------------------
Truck Freight - 0.8%
900 Airborne Freight Corp. 19,800
1,100 American Freightways Corp.* 17,806
600 Landstar Systems, Inc.* 25,687
500 USFreightways Corp. 23,938
400 Werner Enterprises, Inc. 5,625
1,000 Yellow Corp.* 16,813
-----------
109,669
------------------------------------------------------------
Wireless - 1.1%
300 Aerial Communications, Inc.* 18,263
400 Leap Wireless International, Inc.* 31,400
300 Omnipoint Corp.* 36,187
400 Powertel, Inc.* 40,150
700 Price Communications Corp. 19,469
-----------
145,469
------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $9,797,770) $11,234,103
------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
<S> <C> <C> <C>
Repurchase Agreement - 13.3%
Joint Repurchase Agreement Account II +
$1,800,000 3.16% 01/03/2000 $ 1,800,000
----------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $1,800,000) $ 1,800,000
----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $11,597,770) $13,034,103
----------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
+ A portion of this security is segregated as collateral for initial margin
requirements on future transactions.
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.
34
<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 annual report covers the year ended
December 31, 1999.
Market Review
Over the year, restrained inflation, solid growth in corpo-
rate profits and gains by a few leadership sectors drove
U.S. indices to record levels. These index gains were
driven primarily by the Technology and Telecommunications
sectors. As was the case in 1998, the strong performance of
these stocks continued to be fueled by investor excitement
over the explosive growth of the Internet. In the broader
market, however, more stocks fell than rose. The NASDAQ
Composite Index, driven primarily by Technology stocks
listed on the NASDAQ Stock Market, rose 48.2% in the last
three months of the period, and an extraordinary 85.6% for
the year ended December 31, 1999. According to Frank Rus-
sell, the technology sector of the Russell 3000 (broad mar-
ket stock index) rose 38.2% in the last three months of the
year, and logged a 78.2% gain for the year. While two addi-
tional sectors--basic materials and capital goods--also
outperformed the Standard & Poor's (S&P) 500, several sec-
tors fell sharply, such as transportation and utilities,
both down 13%, and bank stocks, down between 10% and 15% on
average.
Performance Review
For the year ended December 31, 1999, the Fund generated a
27.13% aggregate total return, outperforming the 21.04% ag-
gregate total return of its benchmark, the S&P 500 Index
(with dividends reinvested).
The Fund's outperformance was primarily attributable to
stock selection. In particular, the Fund's positions in the
Technology and Media & Communications sectors contributed
strongly to performance.
Investment Objective and Strategies
The Fund seeks long-term capital growth, primarily through
investments in a diversified portfolio of companies that
are considered by the investment adviser to have long-term
capital appreciation potential.
35
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND
Shareholder Letter (continued)
Portfolio Composition
Top 10 Portfolio Holdings as of December 31, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Line of Business Net Assets
------- ---------------- -------------
<S> <C> <C>
Microsoft Corp. Computer Software 4.8%
General Electric Co. Financial Services 4.1
SPDR Trust ADR Series 1 Miscellaneous 3.3
Cisco Systems, Inc. Computer Hardware 2.9
Wal-Mart Stores, Inc. Department Store 2.6
Exxon Mobil Corp. Energy Resources 2.4
Intel Corporation Semiconductors 2.3
AT&T Corp. Liberty Media Group Media 2.3
Time Warner, Inc. Media 2.0
Sun Microsystems, Inc. Computer Hardware 1.9
</TABLE>
* Opinions expressed in this report represent our present
opinions only. Reference to individual securities should
not be construed as a commitment 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 a recommendation 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 are generally bullish on the U.S. economy. Over the last
decade, global communication has increased, resulting from
significant technological advances as well as a generally
peaceful world political environment. We believe that this
trend, combined with favorable demographic trends, will
benefit U.S. companies over the long term. More fundamen-
tally, though, we continue to focus on the core business
characteristics which provide a foundation for long-term
growth, such as strength of franchise, quality of manage-
ment, 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
January 31, 2000
36
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND
Performance Summary
December 31, 1999
The following graph shows the value as of December 31, 1999, of a $10,000 in-
vestment made on April 30, 1998 (commencement of operations). For comparative
purposes, the performance of the Fund's benchmark (the Standard and Poor's
500 Index ("S&P 500 Index")) is shown. This performance data represents past
performance and should not be considered indicative of future performance
which will fluctuate with changes in market conditions. These performance
fluctuations will cause an investor's shares, when redeemed, to be worth more
or less than their original cost.
Capital Growth Fund's Lifetime Performance
Growth of a $10,000 investment, Distributions Reinvested April 30, 1998 to
December 31, 1999
[GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND'S LIFETIME
PERFORMANCE GRAPH APPEARS HERE]
Capital Growth Fund S&P 500 Index
4/30/98 10,000 10,000
5/98 9,720 9,828
6/98 10,280 10,227
7/98 10,189 10,118
8/98 8,590 8,655
9/98 9,120 9,209
10/98 9,960 9,958
11/98 10,539 10,562
12/98 11,340 11,171
1/99 11,652 11,639
2/99 11,321 11,277
3/99 11,913 11,728
4/99 12,404 12,182
5/99 11,993 11,894
6/99 12,816 12,554
7/99 12,334 12,163
8/99 12,144 12,102
9/99 12,034 11,770
10/99 12,966 12,515
11/99 13,307 12,769
12/99 14,420 13,524
<TABLE>
<CAPTION>
Since Inception One Year
Average Annual Total Return through December
31, 1999
<S> <C> <C>
Capital Growth Fund (commenced April 30, 1998) 24.43% 27.13%
--------------------------------------------------------------------------
</TABLE>
37
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND
Statement of Investments
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - 99.0%
Banks - 2.9%
1,400 Bank of America Corp. $ 70,262
2,725 Citigroup, Inc. 151,408
500 The Bank of New York Co., Inc. 20,000
1,400 Wells Fargo Co. 56,613
----------
298,283
---------------------------------------------------------------
Chemicals - 1.8%
967 E.I. du Pont de Nemours & Co. 63,701
700 Minnesota Mining & Manufacturing Co. 68,513
400 The Dow Chemical Co. 53,450
----------
185,664
---------------------------------------------------------------
Computer Hardware - 6.6%
2,800 Cisco Systems, Inc.* 299,950
900 Dell Computer Corp.* 45,900
1,300 EMC Corp.* 142,025
2,600 Sun Microsystems, Inc.* 201,337
----------
689,212
---------------------------------------------------------------
Computer Software - 8.4%
600 CheckFree Holdings Corp.* 62,700
1,500 International Business Machines, Inc. 162,000
4,300 Microsoft Corp.* 502,025
1,400 Oracle Corp.* 156,887
----------
883,612
---------------------------------------------------------------
Consumer Services - 1.3%
2,700 Cendant Corp.* 71,719
1,500 Valassis Communications, Inc.* 63,375
----------
135,094
---------------------------------------------------------------
Department Store - 2.6%
3,900 Wal-Mart Stores, Inc. 269,587
---------------------------------------------------------------
Drugs - 7.2%
2,300 American Home Products Corp. 90,706
400 Amgen, Inc.* 24,025
2,900 Bristol-Myers Squibb Co. 186,144
600 Eli Lilly & Co. 39,900
1,200 Merck & Co., Inc. 80,475
3,800 Pfizer, Inc. 123,263
1,500 Schering-Plough Corp. 63,281
1,800 Warner-Lambert Co. 147,487
----------
755,281
---------------------------------------------------------------
Electrical Equipment - 5.0%
200 Corning, Inc. 25,787
500 General Instrument Corp.* 42,500
1,900 Lucent Technologies, Inc. 142,144
1,200 Nortel Networks Corp. 121,200
1,080 QUALCOMM, Inc. 190,215
----------
521,846
---------------------------------------------------------------
Electrical Utilities - 1.5%
2,100 The AES Corp.* 156,975
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Energy Resources - 4.5%
300 Atlantic Richfield Co. $ 25,950
600 Chevron Corp. 51,975
500 Enron Corp. 22,188
3,092 Exxon Mobil Corp. 249,099
1,900 Royal Dutch Petroleum Co. ADR 114,831
300 Unocal Corp. 10,069
----------
474,112
------------------------------------------------------------------
Financial Services - 8.8%
2,400 Federal Home Loan Mortgage Corp. 112,950
1,900 Federal National Mortgage Assoc. 118,631
2,800 General Electric Co. 433,300
4,000 MBNA Corp. 109,000
1,900 State Street Corp. 138,819
----------
912,700
------------------------------------------------------------------
Food & Beverage - 2.9%
3,700 Nabisco Group Holdings Corp. 39,312
2,400 PepsiCo, Inc. 84,600
2,400 The Coca-Cola Co. 139,800
500 Wm. Wrigley Jr. Co. 41,469
----------
305,181
------------------------------------------------------------------
Forest - 0.4%
400 International Paper Co. 22,575
300 Weyerhaeuser Co. 21,544
----------
44,119
------------------------------------------------------------------
Home Products - 4.2%
2,200 Avon Products, Inc. 72,600
2,800 Colgate-Palmolive Co. 182,000
3,200 Ralston-Ralston Purina Group 89,200
900 The Procter & Gamble Co. 98,606
----------
442,406
------------------------------------------------------------------
Hotels - 1.4%
1,600 Harrah's Entertainment, Inc.* 42,300
1,800 Marriott International, Inc. 56,812
2,000 Starwood Hotels & Resorts Worldwide, Inc. 47,000
----------
146,112
------------------------------------------------------------------
Information Services - 5.8%
2,200 America Online, Inc.* 165,962
1,116 At Home Corp.* 47,849
800 Automatic Data Processing, Inc. 43,100
2,500 First Data Corp. 123,281
600 Galileo International, Inc. 17,963
100 Network Solutions, Inc.* 21,756
500 VeriSign, Inc.* 95,469
200 Yahoo!, Inc.* 86,537
----------
601,917
------------------------------------------------------------------
Leisure - 0.1%
700 Hasbro, Inc. 13,344
------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
38
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Life Insurance - 0.4%
500 Hartford Life, Inc. $ 22,000
600 Nationwide Financial Services, Inc. 16,763
----------
38,763
------------------------------------------------------------
Media - 11.6%
3,200 A.H. Belo Corp. 61,000
1,200 AMFM, Inc.* 93,900
4,200 AT&T Corp.-Liberty Media Group* 238,350
800 Cablevision Systems Corp.* 60,400
1,800 CBS Corp.* 115,087
378 Clear Channel Communications, Inc.* 33,737
1,900 Comcast Corp. 96,069
600 EchoStar Communications Corp.* 58,500
1,900 Infinity Broadcasting Corp.* 68,756
2,000 MediaOne Group, Inc.* 153,625
900 The Walt Disney Co. 26,325
2,900 Time Warner, Inc. 210,069
----------
1,215,818
------------------------------------------------------------
Medical Products - 0.7%
800 Johnson & Johnson 74,500
------------------------------------------------------------
Medical Providers - 0.2%
2,500 Service Corp. International 17,344
------------------------------------------------------------
Mining - 0.2%
300 Alcoa, Inc. 24,900
------------------------------------------------------------
Motor Vehicle - 0.9%
1,000 Ford Motor Co. 53,437
500 General Motors Corp. 36,344
----------
89,781
------------------------------------------------------------
Oil Refining - 0.3%
600 Texaco, Inc. 32,588
------------------------------------------------------------
Oil Services - 1.1%
1,900 Schlumberger Ltd. 106,875
369 Transocean Sedco Forex, Inc. 12,417
----------
119,292
------------------------------------------------------------
Property Insurance - 1.1%
400 Ambac Financial Group, Inc. 20,875
847 American International Group, Inc. 91,582
----------
112,457
------------------------------------------------------------
Publishing - 2.2%
900 Central Newspapers, Inc. 35,437
800 Gannett Co., Inc. 65,250
1,500 The New York Times Co. 73,687
600 Tribune Co. 33,038
1,200 Ziff-Davis, Inc.* 18,975
----------
226,387
------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Restaurants - 0.5%
1,200 McDonald's Corp. $ 48,375
-----------------------------------------------------------
Security/Asset Management - 0.4%
1,100 The Charles Schwab Corp. 42,213
-----------------------------------------------------------
Semiconductors - 2.8%
2,900 Intel Corp. 238,706
500 Texas Instruments, Inc. 48,438
-----------
287,144
-----------------------------------------------------------
Specialty Retail - 2.2%
600 CVS Corp. 23,963
600 Tandy Corp. 29,513
1,350 The Home Depot, Inc. 92,559
3,000 Walgreen Co. 87,750
-----------
233,785
-----------------------------------------------------------
Telephone - 4.4%
2,000 GTE Corp. 141,125
3,450 MCI WorldCom, Inc.* 183,066
2,800 SBC Communications, Inc. 136,500
-----------
460,691
-----------------------------------------------------------
Tobacco - 0.3%
1,500 Philip Morris Cos., Inc. 34,781
-----------------------------------------------------------
Wireless - 1.0%
2,400 Crown Castle International Corp.* 77,100
300 Sprint Corp. (PCS Group) 30,750
-----------
107,850
-----------------------------------------------------------
Miscellaneous - 3.3%
2,344 SPDR Trust ADR Series 1 344,275
-----------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $8,407,677) $10,346,389
-----------------------------------------------------------
TOTAL INVESTMENTS
(Cost $8,407,677) $10,346,389
-----------------------------------------------------------
</TABLE>
* Non-income producing security.
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.
39
<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 annual report covers the year ended
December 31, 1999.
Market Review
Over the year, restrained inflation, solid growth in corpo-
rate profits and gains by a few leadership sectors drove
U.S. indices to record levels. These index gains were
driven primarily by the Technology and Telecommunications
sectors. As was the case in 1998, the strong performance of
these stocks continued to be fueled by investor excitement
over the explosive growth of the Internet. In the broader
market, however, more stocks fell than rose. The NASDAQ
Composite Index, driven primarily by Technology stocks
listed on the NASDAQ Stock Market, rose 48.2% in the last
three months of the period, and an extraordinary 85.6% for
the year ended December 31, 1999. According to Frank Rus-
sell, the technology sector of the Russell 3000 (broad mar-
ket stock index) rose 38.2% in the last three months of the
year, and logged a 78.2% gain for the year. While two addi-
tional sectors--basic materials and capital goods--also
outperformed the Standard & Poor's 500, several sectors
fell sharply, such as transportation and utilities, both
down 13%, and bank stocks, down between 10% and 15% on
average.
Performance Review
For the year ended December 31, 1999, the Fund generated a
-0.95% return, versus a -0.10% return for its benchmark,
the Russell Midcap Value Index. The Russell Midcap Index
generated a 18.23% return. Detractors from performance in-
cluded our tobacco position, which suffered due to litiga-
tion concerns. We have reduced this overweight position. On
a relative basis, our underweights in highly valued indus-
tries--wireless communications and computer software--hurt
the portfolio, as these industry groups each rose more than
one hundred percent during the year. Several specific
stocks also detracted from performance, including Fruit of
the Loom and Federal Mogul.
Investment Objective and Strategies
The Fund seeks long-term capital appreciation, primarily
through equity securities of companies with public stock
market capitalizations within the range of the market cap
of companies constituting the Russell Midcap Value Index at
the time of investment (currently between $300 million and
$15 billion).
Benchmark Change
Since December 1, 1999, we have been reporting and evaluat-
ing the Fund's risk profile against the Russell Midcap
Value Index (previously, the Fund's benchmark was the Rus-
sell Midcap Index). We believe that over a complete busi-
ness cycle, either a growth or value style will offer
competitive returns within the mid cap market. Over shorter
time periods,
40
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND
however, we believe it is important to view our performance
versus a value benchmark such as the Russell Midcap Value
Index, as it more accurately captures our style of invest-
ing and the universe in which we search for investment
ideas.
Portfolio Composition
Top 10 Portfolio Holdings as of December 31, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Line of Business Net Assets
------- ---------------- -------------
<S> <C> <C>
Pacific Century Financial Corp. Banks 2.8%
UCAR International, Inc. Heavy Electrical 2.4
Avnet, Inc. Semiconductors 2.2
Aetna, Inc. Life Insurance 2.0
Starwood Hotels & Resorts
Worldwide, Inc. Hotels 2.0
Millennium Chemicals, Inc. Chemicals 2.0
Northeast Utilities Electrical Utilities 2.0
Public Service Co. of New Mexico Electrical Utilities 1.9
Media General, Inc. Media 1.9
The Bear Stearns Cos. Inc. Security/Asset Management 1.8
</TABLE>
* Opinions expressed in this report represent our present
opinions only. Reference to individual securities should
not be construed as a commitment 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 a recommendation 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
Most of 1999 was a difficult period for the value style of
investing. Through some of our holdings were punished in
this environment, we remain confident in our long-term as-
sessments of their businesses. We are also excited about
the investment opportunities that currently exist in the
market and will continue to search for businesses that we
believe will generate value for the Fund over the long
term.
Additionally, as part of our ongoing efforts to improve the
Fund for the benefit of shareholders, we have, over the
past year, implemented some changes. Most recently, these
include:
. Adding a new Chief Investment Officer, Eileen Rominger,
to the US Value Team. Ms. Rominger brings 18 years' in-
vestment experience to our value effort.
. Implementing a value investment philosophy with a primary
emphasis on company quality, as measured by management,
strategy and long-term, sustainable advantages.
As in the past, we thank you for your continued confidence.
Goldman Sachs Value Portfolio Management Team
January 31, 2000
41
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND
Performance Summary
December 31, 1999
The following graph shows the value as of December 31, 1999, of a $10,000 in-
vestment made on May 1, 1998 (commencement of operations). For comparative
purposes, the performance of the Fund's benchmark the Russell Midcap Value
Index as well as the Russell Midcap Index are shown. This performance data
represents past performance and should not be considered indicative of future
performance which will fluctuate with changes in market conditions. These
performance fluctuations will cause an investor's shares, when redeemed, to
be worth more or less than their original cost.
Mid Cap Value Fund's Lifetime Performance
Growth of a $10,000 investment, Distributions Reinvested May 1, 1998 to
December 31, 1999
[GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND'S LIFETIME
PERFORMANCE GRAPH APPEARS HERE]
Russell
Mid Cap Russell Midcap
Value Midcap Value
Fund Index Index
5/1/98 10,000 10,000 10,000
5/30/98 9,710 9,690 9,767
6/98 9,400 9,825 9,798
7/98 8,760 9,356 9,301
8/98 7,400 7,859 7,994
9/98 7,820 8,368 8,461
10/98 8,230 8,938 9,009
11/98 8,530 9,362 9,325
12/98 8,644 9,911 9,608
1/99 8,453 9,896 9,386
2/99 8,241 9,566 9,179
3/99 8,433 9,865 9,310
4/99 9,361 10,595 10,192
5/99 9,835 10,564 10,235
6/99 10,086 10,937 10,352
7/99 9,612 10,636 10,093
8/99 9,027 10,361 9,744
9/99 8,432 9,996 9,251
10/99 8,301 10,470 9,523
11/99 8,462 10,771 9,349
12/99 8,561 11,721 9,602
<TABLE>
<CAPTION>
Since Inception One Year
Aggregate Total Return through December 31, 1999
<S> <C> <C> <C>
Mid Cap Value Fund (commenced May 1, 1998) -8.87% -0.95%
-------------------------------------------------------------------------
</TABLE>
42
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND
Statement of Investments
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - 94.3%
Apparel - 0.7%
18,100 Reebok International Ltd.* $ 148,194
--------------------------------------------------------------
Banks - 6.7%
5,600 Comerica, Inc. 261,450
32,400 Pacific Century Financial Corp. 605,475
4,400 Republic of New York Corp.* 316,800
6,900 UnionBanCal Corp.* 272,119
-----------
1,455,844
--------------------------------------------------------------
Chemicals - 4.5%
17,100 IMC Global, Inc. 280,012
22,000 Millennium Chemicals, Inc. 434,500
5,800 Potash Corp. of Saskatchewan, Inc. 279,488
-----------
994,000
--------------------------------------------------------------
Clothing - 1.6%
18,900 Ross Stores, Inc. 339,019
--------------------------------------------------------------
Computer Hardware - 2.6%
20,600 Ingram Micro, Inc.* 270,375
11,400 Tech Data Corp.* 309,225
-----------
579,600
--------------------------------------------------------------
Computer Software - 1.0%
16,800 Mentor Graphics Corp.* 221,550
--------------------------------------------------------------
Construction - 5.0%
7,900 Equity Office Properties Trust 194,538
4,200 Equity Residential Properties Trust 179,288
9,100 Georgia-Pacific Corp. (Timber Group) 224,087
5,800 Spieker Properties, Inc. 211,337
16,400 Trizec Hahn Corp. 276,750
-----------
1,086,000
--------------------------------------------------------------
Consumer Durables - 1.0%
9,500 Herman Miller, Inc. 218,500
--------------------------------------------------------------
Defense/Aerospace - 1.6%
6,500 Northrop Grumman Corp. 351,406
--------------------------------------------------------------
Department Store - 2.0%
9,400 Dillard's, Inc. 189,763
5,000 Federated Department Stores, Inc.* 252,812
-----------
442,575
--------------------------------------------------------------
Drugs - 1.0%
25,000 Bergen Brunswig Corp. 207,813
--------------------------------------------------------------
Electrical Utilities - 9.2%
8,600 DTE Energy Co. 269,825
10,700 Entergy Corp. 275,525
2,400 FPL Group, Inc. 102,750
21,000 Northeast Utilities 431,812
25,800 Public Service Co. of New Mexico 419,250
13,100 SCANA Corp. 352,063
4,900 Unicom Corp. 164,150
-----------
2,015,375
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Energy Resources - 1.5%
7,900 Tosco Corp. $ 214,781
8,900 Union Pacific Resources Group, Inc. 113,475
-----------
328,256
--------------------------------------------------------------------
Environmental Services - 1.2%
18,900 Republic Services, Inc. 271,688
--------------------------------------------------------------------
Financial Services - 2.4%
3,300 Avalonbay Communities, Inc. 113,231
5,100 Public Storage, Inc. 115,707
11,793 Waddell & Reed Financial, Inc. Class B* 296,299
-----------
525,237
--------------------------------------------------------------------
Food & Beverage - 3.7%
21,995 Archer-Daniels-Midland Co. 268,064
25,100 Fleming Cos., Inc. 257,275
9,400 International Home Foods, Inc.* 163,325
10,700 Nabisco Group Holdings Corp. 113,688
-----------
802,352
--------------------------------------------------------------------
Gas Utilities - 0.9%
10,900 LG&E Energy Corp. 190,069
--------------------------------------------------------------------
Heavy Electrical - 3.3%
2,900 Phelps Dodge Corp. 194,662
30,000 UCAR International, Inc.* 534,375
-----------
729,037
--------------------------------------------------------------------
Heavy Machinery - 1.5%
24,300 AGCO Corp. 326,531
--------------------------------------------------------------------
Hotels - 2.0%
18,700 Starwood Hotels & Resorts Worldwide, Inc.* 439,450
--------------------------------------------------------------------
Industrial Parts - 1.7%
2,600 Parker-Hannifin Corp. 133,412
18,500 UNOVA, Inc.* 240,500
-----------
373,912
--------------------------------------------------------------------
Industrial Services - 1.6%
13,800 Modis Professional Services, Inc.* 196,650
6,600 Ryder System, Inc. 161,287
-----------
357,937
--------------------------------------------------------------------
Information Services - 0.5%
3,400 The Dun & Bradstreet Corp. 100,300
--------------------------------------------------------------------
Life Insurance - 2.0%
8,000 Aetna, Inc. 446,500
--------------------------------------------------------------------
Media - 2.9%
12,400 A.H. Belo Corp. 236,375
7,800 Media General, Inc. 405,600
-----------
641,975
--------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
43
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND
Statement of Investments (continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Medical Providers - 5.6%
27,700 Health Management Associates, Inc.* $ 370,487
24,400 Manor Care, Inc.* 390,400
4,200 Quest Diagnostics, Inc.* 128,363
14,100 Tenet Healthcare Corp.* 331,350
-----------
1,220,600
-------------------------------------------------------------
Mining - 2.4%
12,990 AK Steel Holding Corp. 245,186
17,800 Ispat International NV 287,025
-----------
532,211
-------------------------------------------------------------
Oil Refining - 1.3%
14,200 Valero Energy Corp. 282,225
-------------------------------------------------------------
Oil Services - 0.6%
2,000 Helmerich & Payne, Inc. 43,625
2,200 Tidewater, Inc. 79,200
-----------
122,825
-------------------------------------------------------------
Property Insurance - 6.3%
16,300 Everest Reinsurance Holdings, Inc. 363,694
3,800 Loews Corp. 230,613
22,900 Old Republic International Corp. 312,012
3,900 Radian Group, Inc.* 186,225
5,700 XL Capital Ltd.* 295,687
-----------
1,388,231
-------------------------------------------------------------
Publishing - 1.9%
7,300 R.R. Donnelley & Sons Co. 181,131
3,600 The Times Mirror Co. 241,200
-----------
422,331
-------------------------------------------------------------
Railroads - 1.2%
12,300 Canadian Pacific Ltd. 265,219
-------------------------------------------------------------
Restaurants - 1.3%
28,300 CBRL Group, Inc. 274,598
-------------------------------------------------------------
Security/Asset Management - 1.8%
9,410 The Bear Stearns Cos., Inc. 402,277
-------------------------------------------------------------
Semiconductors - 3.3%
8,000 Avnet, Inc. 484,000
7,662 Vishay Intertechnology, Inc.* 242,311
-----------
726,311
-------------------------------------------------------------
Specialty Retail - 1.1%
7,200 AutoZone, Inc.* 232,650
-------------------------------------------------------------
Thrifts - 2.2%
9,700 GreenPoint Financial Corp. 230,981
33,700 Sovereign Bancorp, Inc. 251,171
-----------
482,152
-------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Tobacco - 2.4%
11,033 R.J. Reynolds Tobacco Holdings, Inc. $ 194,457
12,800 UST, Inc. 322,400
-----------
516,857
--------------------------------------------------------------
Truck Freight - 0.8%
5,100 CNF Transportation, Inc. 175,950
--------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $20,986,159) $20,637,557
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
<S> <C> <C> <C>
Repurchase Agreement - 6.0%
Joint Repurchase Agreement Account II
$1,300,000 3.16% 01/03/2000 $ 1,300,000
----------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $1,300,000) $ 1,300,000
----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $22,286,159) $21,937,557
----------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
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.
44
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM INTERNATIONAL EQUITY FUND
Shareholder Letter
Dear Shareholders,
We are pleased to report on the performance of the Goldman Sachs Variable In-
surance Trust CORE SM International Equity Fund. This annual report covers
the period from April 1, 1999, when the Fund began operations, through
December 31, 1999.
Market Review
Europe--New year euphoria surrounding the launch of the
Euro was short lived, as markets retreated on news of the
peso devaluation, rising U.S. interest rates and sluggish
production data in much of the region. Toward period end,
European markets strengthened again, boosted by, among
other things, strong merger and take-over activity as a
number of sectors began to consolidate, improved consumer
confidence levels and production activity and the onset of
investor interest in technology orientated stocks which
propelled the Telecoms, Media and IT sectors to new highs.
Japan--The Japanese market performed strongly during the
period under review, with much of the rise attributed to
the stellar performance of a small number of stocks. Pri-
marily underpinning the markets's strength were enhanced
expectations for improvement in corporate fundamentals and
the macro-economy. Second, consolidation activity acceler-
ated in various industries, with the banking sector best
representing the overall trend toward strategic alliance.
Third, a series of launches of telecom/technology mutual
funds helped to substantially drive up the stock prices of
a small group of communications stocks, resulting in a con-
siderable contraction of market breadth.
Performance Review
From April 1, 1999 through December 31, 1999, the Fund gen-
erated a 26.64% aggregate total return. This compares fa-
vorably with the 25.45% aggregate total return of its
benchmark, the Morgan Stanley Capital International (MSCI)
Europe, Australia, Far East (EAFE) Index.
The CORE International Equity strategy seeks to add value
relative to the MSCI-EAFE index from two sources: stock se-
lection and global tactical asset allocation, which in-
volves over-weighting and under-weighting country equity
markets relative to the benchmark. In 1999, global tactical
asset allocation decisions resulted in strong performance,
led by our decisions to favor Finland and Singapore while
underweighting the UK equity market. Our stock selection
process struggled through the year and detracted from the
portfolio's performance.
45
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM INTERNATIONAL EQUITY FUND
Shareholder Letter (continued)
Portfolio Composition
Top 10 Portfolio Holdings as of December 31, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Country Line of Business Net Assets
------- ------- ---------------- -------------
<S> <C> <C> <C>
Telefonica de
Espana SA Spain Telecommunications 2.9%
Nippon Telephone &
Telegraph Corp. Japan Telecommunications 2.8
Nokia Oyj Series A Finland Telecommunications 2.7
Toyota Motor Corp. Japan Auto 1.9
DBS Bank Ltd. Singapore Banks 1.7
British Telecom PLC Britain Telecommunications 1.6
Ericsson
Telecommunications
Series B Sweden Electrical Equipment 1.5
Softbank Corp. Japan Business Services 1.5
DaimlerChrysler AG Germany Auto 1.4
Sony Corp. Japan Appliance 1.4
</TABLE>
* Opinions expressed in this report represent our present
opinions only. Reference to individual securities should
not be construed as a commitment 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 a recommendation 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.
Investment Objective and Strategies
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 U.S., or
whose securities are principally traded outside the U.S.
The CORE SM International portfolio is positioned to invest
in assets that we believe are cheap relative to fundamen-
tals, and that have strong momentum characteristics. Our
risk management strategy helps us as we seek to mitigate
exposures to factors that are not related to value and
momentum. Ultimately, the goal is to invest in a portfolio
of international stocks that has characteristics similar to
the MSCI-EAFE index, but that outperforms the index by tak-
ing carefully considered active positions.
Portfolio Outlook
We expect that over a market cycle, both the stock selec-
tion and global tactical asset allocation decisions will
add value in the portfolio, and that the two disciplines
should offer diversified sources of return in the portfo-
lio.
We thank you for your investment and look forward to your
continued confidence.
Goldman Sachs Quantitative Equity Management Team
January 31, 2000
46
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM INTERNATIONAL EQUITY FUND
Performance Summary
December 31, 1999
The following graph shows the value as of December 31, 1999, of a $10,000 in-
vestment made on April 1, 1999 (commencement of operations). For comparative
purposes, the performance of the Fund's benchmark (the Morgan Stanley Capital
International (MSCI) Europe, Australia, Far East (EAFE)) is shown. This per-
formance data represents past performance and should not be considered indic-
ative of future performance which will fluctuate with changes in market
conditions. These performance fluctuations will cause an investor's shares,
when redeemed, to be worth more or less than their original cost.
CORE SM International Equity Fund's Lifetime Performance
Growth of a $10,000 Investment, Distributions Reinvested April 1, 1999 to
December 31, 1999
[GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE INTERNATIONAL EQUITY FUND'S
LIFETIME PERFORMANCE GRAPH APPEARS HERE]
CORE International MSCI EAFE
Equity Fund Index
4/1/99 10,000 10,000
4/30/99 10,510 10,407
5/99 9,970 9,873
6/99 10,459 10,260
7/99 10,729 10,568
8/99 10,769 10,609
9/99 10,789 10,718
10/99 11,230 11,123
11/99 11,649 11,511
12/99 12,665 12,548
<TABLE>
<CAPTION>
Since Inception
Aggregate Total Return through December 31, 1999(a)
<S> <C>
CORE SM International Equity Fund (commenced April 1, 1999) 26.64%
-------------------------------------------------------------------------------
</TABLE>
(a) Represents aggregate total return since the Fund has not been in
operation for a full 12 months.
47
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM INTERNATIONAL EQUITY FUND
Statement of Investments
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - 100.0%
Britain - 12.2%
3,000 Allied Zurich PLC (Insurance) $ 35,375
2,300 AMEC PLC (Construction) 9,102
6,400 Arjo Wiggins Appleton PLC (Paper) 21,606
1,600 AstraZeneca Group PLC (Health) 66,473
1,000 Barclays PLC (Banks) 28,736
2,844 BG Group PLC (Utilities) 18,364
3,100 Billiton PLC (Nonferrous Metals) 18,377
17,000 BP Amoco PLC (Energy Resources) 171,604
2,400 British American Tobacco (Tobacco) 13,569
8,500 British Telecom PLC (Telecommunications) 205,951
3,100 Centrica PLC (Utilities) 9,001
8,400 Corus Group PLC (Metals) 21,845
500 Daily Mail & General Trust (Broadcasting) 34,729
900 Diageo PLC (Tobacco) 7,182
5,000 FKI PLC (Electrical Equipment) 19,586
7,200 George Wimpey PLC (Construction) 12,909
2,900 Glaxo Wellcome PLC (Health) 82,164
700 Granada Group PLC (Leisure) 7,067
8,500 HSBC Holdings PLC (Banks) 117,804
1,400 Imperial Chemical Industries PLC (Chemicals) 14,790
700 Johnson Matthey PLC (Diversified Industrial
Manufacturing) 6,886
600 Kingfisher Group (Merchandising) 6,658
2,000 Lex Service PLC (Business Services) 12,018
1,200 National Power PLC (Utilities) 6,920
4,800 NFC PLC (Business Services) 19,306
6,400 Norwich Union PLC (Insurance) 49,053
600 Pearson PLC (Broadcasting) 19,529
1,400 Premier Farnell PLC (Electrical Utilities) 10,425
800 Racal Electronics PLC (Electrical Equipment) 7,204
800 Railtrack Group PLC (Business Services) 13,439
600 Reuters Group PLC (Business Services) 8,335
700 RMC Group PLC (Construction) 9,611
10,500 Rolls-Royce PLC (Defense/Aerospace) 36,465
3,500 Royal Bank of Scotland Group PLC (Banks) 61,963
2,200 Safeway PLC (Merchandising) 7,631
800 Shell Transport & Trading Co. (Energy Resources) 6,649
8,800 Smith & Nephew PLC (Health) 29,566
2,400 Smith Group (Merchandising) 18,657
4,500 SmithKline Beecham (Health) 57,060
800 Standard Chartered PLC (Banks) 12,729
1,100 Thames Water (Business Services) 13,602
2,600 The Peninsular & Oriental Steam Navigation Co.
(Ship Transportation) 43,132
2,500 Unilever PLC (Food & Beverage) 56,689
1,800 United Utilities PLC (Business Services) 18,550
17,200 Vodafone AirTouch PLC (Telecommunications) 85,736
4,800 Williams PLC (Electrical Utilities) 21,865
---------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Britain - (continued)
1,500 Wolseley PLC (Construction) $ 11,509
600 WPP Group PLC (Business Services) 9,401
----------
1,576,822
-----------------------------------------------------------------------
Finland - 3.6%
2,500 Finnair Oyj Series 1 (Airlines) 11,207
300 Kesko Oyj (Wholesale) 3,808
1,300 Merita PLC * (Banks) 7,648
300 Metra Oyj (Multi-Industrial) 5,591
1,900 Metsa Serla OY (Paper) 22,106
1,900 Nokia Oyj Series A (Telecommunications) 344,513
400 Orion-Yhtyma Oyj (Health) 9,268
600 Pohjola Group Insurance Corp. (Insurance) 36,265
500 Sampo Insurance Co. Ltd. Series A (Insurance) 17,477
----------
457,883
-----------------------------------------------------------------------
France - 7.2%
600 Alstom (Electrical Equipment) 20,006
500 Assurances Generales de France (Insurance) 27,098
800 Axa (Insurance) 111,534
1,100 Banque National de Paris (Banks) 101,500
200 Carrefour SA (Specialty Retail) 36,889
400 Compagnie de Saint-Gobain (Construction) 75,229
1,000 France Telecom SA (Telecommunications) 132,265
100 GTM Entrepose (Construction) 9,721
500 Lafarge SA (Construction) 58,225
600 Lagardere S.C.A. (Multi-Industrial) 32,638
400 Pernod Ricard (Tobacco) 22,887
100 Pinault-Printemps-Redoute SA (Merchandising) 26,392
400 Rhone-Poulenc SA (Chemicals) 23,250
700 Sanofi-Synthelabo SA * (Health) 29,151
400 Societe Generale (Banks) 93,079
400 Suez Lyonnaise Eaux (Business Services) 64,108
500 Total Fina SA Class B (Energy Resources) 66,737
----------
930,709
-----------------------------------------------------------------------
Germany - 9.5%
200 AGIV AG (Multi-Industrial) 3,616
300 Allianz AG (Insurance) 100,785
2,000 BASF AG (Chemicals) 102,750
700 Bayer AG (Chemicals) 33,142
1,900 Commerzbank AG (Banks) 69,764
2,400 DaimlerChrysler AG (Auto) 186,642
1,600 Deutsche Bank AG (Banks) 135,146
200 Deutsche Lufthansa AG (Airlines) 4,654
2,400 Deutsche Telekom AG (Telecommunications) 170,927
900 FAG Kugelfischer Georg Schaefer AG (Industrial
Services) 8,069
-----------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
48
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Germany - (continued)
400 IWKA AG (Machinery) $ 8,421
100 Karstadt AG (Merchandising) 4,009
2,100 MAN AG (Machinery) 78,906
100 Mannesmann AG (Telecommunications) 24,126
1,600 Merck KGAA (Health) 49,642
100 Schering AG (Health) 12,088
1,100 Siemens AG (Electrical Equipment) 139,951
200 Thyssen AG (Steel) 6,095
1,700 Veba AG (Utilities) 82,628
----------
1,221,361
------------------------------------------------------------------------------
Hong Kong - 1.6%
12,000 Amoy Properties (Real Estate) 10,111
9,000 Cable & Wireless HKT Ltd. (Telecommunications) 25,992
2,000 Cathay Pacific Airways (Airlines) 3,563
2,000 CDL Hotels International Ltd. (Leisure) 798
2,000 Cheung Kong Holdings Ltd. (Real Estate) 25,343
4,000 CLP Holdings Ltd. (Utilities) 18,422
1,000 Cosco Pacific Ltd. (Industrial Services) 830
1,000 Great Eagle Holdings Ltd. (Real Estate) 1,775
1,000 Guoco Group Ltd. (Banks) 3,049
1,000 Hang Lung Development Co. Ltd. (Real Estate) 1,132
2,000 Hang Seng Bank Ltd. (Banks) 22,834
2,000 Hong Kong Construction (Holdings) Ltd. (Construction) 727
3,000 Hutchison Whampoa Ltd. (Financial Services) 43,610
1,000 Hysan Development Co. Ltd. (Retailers) 1,267
1,000 Kerry Properties Ltd. (Real Estate) 1,402
1,000 Sime Darby Hong Kong Ltd. (Retailers) 334
2,000 Sun Hung Kai Properties Ltd. (Real Estate) 20,840
800 Television Broadcasts Ltd. (Media) 5,454
2,000 Wharf Holdings Co. Ltd. (Real Estate) 4,644
4,000 Wheelock & Co. Ltd. (Real Estate) 4,194
1,000 Wing Lung Bank (Financial Services) 4,052
1,000 Yue Yuen Industrial Holdings (Apparel) 2,380
----------
202,753
------------------------------------------------------------------------------
Italy - 4.9%
2,762 Assicurazioni Generali (Insurance) 91,260
2,373 Banca Commerciale Italiana (Banks) 12,908
21,559 Banca Intesa SpA (Banks) 83,198
5,200 CIR-Compagnie Industriali Riunite SpA (Multi-
Industrial) 13,724
7,000 Enel SpA * (Utilities) 29,334
25,700 ENI SpA (Energy Resources) 141,353
700 Fiat SpA * (Auto) 19,991
5,000 Ifil (Finanziara di Partecipazioni) SpA (Multi-
Industrial) 49,310
1,900 Mediaset SpA (Broadcasting) 29,552
2,100 Milano Assicurazioni (Insurance) 6,093
10,000 Montedison SpA (Multi-Industrial) 16,369
2,000 San Paolo-IMI SpA (Banks) 27,178
------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Italy - (continued)
3,500 Sirti SpA (Construction) $ 12,516
400 Societa Assicuratrice Industriale (Insurance) 4,477
6,700 Telecom Italia SpA (Telecommunications) 92,144
--------
629,407
--------------------------------------------------------------------------
Japan - 31.2%
1,000 77 Bank Ltd. (Banks) 10,483
600 Acom Co. (Financial Services) 58,784
2,000 Alps Electric Co. (Electrical Utilities) 30,518
100 Benesse Corp. (Business Services) 24,078
1,000 Canon Sales Co., Inc. (Business Services) 15,464
1,000 Canon, Inc. (Computer Hardware) 39,738
4 Central Japan Railway Co. (Railroads) 25,095
1,000 Chuo Trust & Bank (Financial Services) 6,930
4,000 Cosmo Oil Co. Ltd. (Energy Resources) 5,990
1,000 Dai-Ichi Kangyo Bank Ltd. (Banks) 9,347
4,000 Dai Nippon Printing Co. Ltd. (Business Services) 63,815
8,000 Daicel Chemical Industries (Chemicals) 22,316
2,000 Daiichi Pharmaceutical Co. (Health) 26,015
10,000 Daikyo Inc. * (Real Estate) 22,218
3,000 Dainippon Pharmaceutical Co. Ltd. (Health) 16,443
700 Daito Trust Construction Co. Ltd. (Construction) 7,811
2,000 Daiwa Securities Group, Inc. (Financial Services) 31,301
300 FANUC Ltd. (Electrical Utilities) 38,201
6,000 Fuji Heavy Industries Ltd. (Auto) 41,108
3,000 Fujitsu Ltd. (Computer Hardware) 136,831
2,000 Hitachi Chemical Co. Ltd. (Chemicals) 37,212
10,000 Hitachi Ltd. (Electrical Equipment) 160,517
2,000 Hitachi Metals Ltd. (Metals) 10,081
1,000 Honda Motor Co. Ltd. (Auto) 37,193
10,000 Izumiya Co. Ltd. (Merchandising) 95,919
2 Japan Tobacco, Inc. (Tobacco) 15,308
1,000 JUSCO Co. Ltd. (Merchandising) 17,432
3,000 Kaken Pharmaceutical Co. Ltd. (Health) 16,678
1,000 Kamigumi Co. Ltd. (Business Services) 4,209
200 KDD Corp. (Telecommunications) 27,718
100 Konami Co. Ltd. (Computer Software) 17,862
5,000 Konica Corp. (Multi-Industrial) 18,596
8,000 KUBOTA Corp. (Machinery) 30,616
500 Kyocera Corp. (Electrical Utilities) 129,686
7,000 Kyowa Hakko Kogyo Co. Ltd. (Health) 41,999
700 Kyushu Electric Power Co., Inc. (Utilities) 10,345
3,000 Matsushita Electric Industrial Co. Ltd. (Appliance) 83,097
6,000 Mazda Motor Corp. (Auto) 26,720
18,000 Mitsubishi Electric (Electrical Equipment) 116,277
5,000 Mitsubishi Heavy Industries Ltd. (Machinery) 16,688
2,000 Mitsubishi Motors Corp. * (Auto) 6,832
2,000 Mitsubishi Trust & Banking (Banks) 17,618
7,000 Mitsui Co. (Wholesale) 48,987
--------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
49
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORESM INTERNATIONAL EQUITY FUND
Statement of Investments (continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Japan - (continued)
10,000 Mitsui O.S.K. Lines Ltd. (Ship Transportation) $ 16,835
2,000 Mitsui Soko Co. Ltd. (Business Services) 4,130
1,000 Mitsumi Electric Co. Ltd. (Electrical Equipment) 31,320
1,000 NEC Corp. (Computer Hardware) 23,833
1,000 Nikon Corp. (Electrical Utilities) 29,363
10,000 Nippon Express Co. Ltd. (Railroads) 55,300
10,000 Nippon Oil Co. Ltd. (Energy Resources) 44,044
4,000 Nippon Suisan Kaisha Ltd. (Food & Beverage) 6,147
21 Nippon Telephone & Telegraph Corp. (Telecommunications) 359,695
4,000 Nissan Motor Co. Ltd.* (Auto) 15,738
1,000 NISSHINBO INDUSTRIES Inc. (Textiles) 4,522
2,000 Oji Paper Co. Ltd. (Paper) 12,039
100 ORIX Corp. (Financial Services) 22,531
600 Promise Co. Ltd. (Financial Services) 30,537
3,000 Ricoh Co. Ltd. (Computer Hardware) 56,553
100 Rohm Co. (Electrical Equipment) 41,108
1,000 Sankyo Co. Ltd. (Health) 20,554
2,000 Sanyo Electric Co. Ltd. (Electrical Equipment) 8,124
1,000 Sekisui House Ltd. (Construction) 8,858
2,000 Sharp Corp. (Electrical Equipment) 51,189
3,000 Shionogi & Co. Ltd. (Health) 36,439
9,000 Showa Denko KK (Chemicals) 10,306
11,000 Snow Brand Milk Products Co. Ltd. (Food & Beverage) 44,357
200 Softbank Corp. (Business Services) 191,446
600 Sony Corp. (Appliance) 177,939
7,000 Sumitomo Osaka Cement Co. Ltd. (Construction) 9,249
7,000 Sumitomo Realty & Development Co. Ltd. (Real Estate) 23,294
3,000 Suzuki Motor Corp. (Auto) 43,780
5,000 Taiheiyo Cement Corp. (Construction) 9,543
1,000 Takeda Chemical Industries Ltd. (Health) 49,427
600 Takefuji Corp. (Financial Services) 75,110
4,000 The Asahi Bank Ltd. (Banks) 24,665
3,000 The Bank of Fukuoka Ltd. (Banks) 20,818
7,000 The Bank of Tokyo-Mitsubishi (Banks) 97,563
2,000 The Bank of Yokohama Ltd. (Commercial Banks) 9,220
5,000 The Fuji Bank Ltd. (Banks) 48,595
9,000 The Industrial Bank of Japan Ltd. (Banks) 86,767
6,000 The Sakura Bank Ltd. (Banks) 34,766
2,000 The Sumitomo Bank Ltd. (Banks) 27,386
3,000 The Sumitomo Trust & Banking Co. Ltd. (Banks) 20,260
1,900 Tokyo Electric Power (Electrical Utilities) 50,954
4,000 Toppan Printing Co. Ltd. (Business Services) 39,933
5,000 Toshiba Corp. (Electrical Equipment) 38,172
------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Japan - (continued)
3,000 Toyo Seikan Kaisha (Multi-Industrial) $ 43,457
5,000 Toyota Motor Corp. (Auto) 242,243
6 West Japan Railway (Railroads) 21,259
1,000 Yamato Transport Co. Ltd. (Transporation) 38,759
5,000 YOKOGAWA ELECTRIC Corp. (Electronics Equipment) 35,284
----------
4,013,487
-----------------------------------------------------------------------------
Netherlands - 5.4%
4,500 ABN AMRO Holding NV (Banks) 112,420
300 DSM NV (Chemicals) 12,028
300 Heineken NV (Tobacco) 14,633
400 Hunter Douglas NV (Multi-Industrial) 10,879
2,599 ING Groep NV (Financial Services) 156,929
1,100 Koninklijke Ahold NV (Merchandising) 32,567
100 Koninklijke Luchtvaart Maatschappij NV (Airlines) 2,569
2,000 Koninklijke Nedlloyd NV (Railroads) 56,009
1,000 Koninklijke Royal Philips Electronics NV (Appliance) 135,992
100 Koninklijke Vopak NV (Transporation) 2,377
900 Koninklijke Wessanen NV (Food & Beverage) 9,791
700 KPN NV (Telecommunications) 68,329
400 Oce N V (Office) 6,761
1,300 Royal Dutch Petroleum Co. (Energy Resources) 79,686
----------
700,970
-----------------------------------------------------------------------------
Portugal - 0.5%
1,700 Banco Comercial Portugues SA (Banks) 9,436
900 Banco Espirito Santo SA (Banks) 25,294
600 Banco Mello SA (Banks) 5,736
1,500 EDP-Electricidade de Portugal SA (Electrical
Utilities) 26,186
100 Semapa-Sociedade de Investimento e Gestao AG
(Building Materials) 1,730
----------
68,382
-----------------------------------------------------------------------------
Singapore - 7.8%
17,000 ACMA Ltd. (Telecommunications) 12,146
8,000 City Developments (Real Estate) 46,833
29,000 Comfort Group Ltd. (Railroads) 15,932
1,000 Cycle & Carriage Ltd. (Auto) 3,092
13,000 DBS Bank Ltd. (Banks) 213,089
3,000 DBS Land (Real Estate) 5,908
3,000 Elec & Eltek International Co. Ltd. (Electrical
Equipment) 9,720
3,000 Fraser & Neave Ltd. (Tobacco) 11,078
1,000 Haw Par Corp. Ltd. (Multi-Industrial) 1,825
4,000 Hotel Properties Ltd. (Leisure) 3,603
2,000 Jurong Shipyard Ltd. (Machinery) 10,027
5,000 Keppel Corp. Ltd. (Multi-Industrial) 13,089
7,000 Keppel TatLee Bank Ltd. (Financial Services) 15,467
</TABLE>
------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
50
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE SM INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Singapore - (continued)
11,000 Marco Polo Development Ltd. (Real Estate) $ 15,785
12,000 NatSteel Ltd. (Steel) 23,921
5,000 Neptune Orient Lines Ltd. * (Ship Transportation) 6,695
12,000 Oversea-Chinese Banking Corp. Ltd. (Banks) 110,237
2,000 Pacific Carriers Ltd. (Transporation) 1,321
6,000 Sembcorp Industries Ltd. (Business Services) 8,178
12,000 Singapore Airlines Ltd. (Airlines) 136,175
3,000 Singapore Press Holdings Ltd. (Publishing) 65,026
27,000 Singapore Technologies Engineering Ltd. (Machinery) 41,825
51,000 Singapore Telecommunications Ltd. (Telecommunications) 105,338
2,000 Times Publishing Ltd. (Publishing) 4,347
8,000 United Engineers (Construction) 9,174
31,000 United Industrial Corp. Ltd. (Real Estate) 17,496
10,000 United Overseas Bank Ltd. (Banks) 88,262
1,000 Venture Manufacturing Ltd. (Electrical Equipment) 11,468
----------
1,007,057
-------------------------------------------------------------------------------
Spain - 7.3%
1,800 Banco Bilbao Vizcaya SA (Banks) 25,639
12,800 Banco Santander Central Hispano SA (Banks) 144,930
400 Bankinter SA (Banks) 20,167
600 Compania Espanola de Petroleos SA (Energy Resources) 5,905
1,200 Dragados Y Construcciones SA (Construction) 10,601
6,500 Endesa SA (Electrical Utilities) 129,057
400 Fomento de Construccions y Contratas SA (Construction) 8,139
200 Gas Natural SDG SA (Gas Utilities) 4,608
1,200 Iberdrola SA (Utilities) 16,633
5,400 Repsol SA (Energy Resources) 125,222
14,850 Telefonica de Espana SA * (Telecommunications) 370,987
4,600 Union Electric Fenosa (Utilities) 80,350
----------
942,238
-------------------------------------------------------------------------------
Sweden - 3.3%
3,500 Electrolux AB (Appliance) 88,024
3,000 Ericsson Telecommunications Series B (Electrical
Equipment) 192,855
400 Esselte AB Series B (Business Services) 3,032
300 Granges AB (Metals) 6,258
1,100 Hennes & Mauritz AB Series B (Merchandising) 36,843
600 Mo och Domsjoe AB Series B (Paper) 21,648
2,000 Svenska Cellulosa AB Series B (Paper) 59,231
-------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Sweden - (continued)
200 Volvo AB Series A (Auto) $ 5,054
600 Volvo AB Series B (Auto) 15,513
-----------
428,458
------------------------------------------------------------------------------
Switzerland - 5.5%
10 Alusuisse Lonza Group AG (Multi-Industrial) 7,373
54 Baloise Holdings Ltd. (Insurance) 42,493
26 Compagnie Financiere Richemont AG (Multi-Industrial) 62,049
270 Credit Suisse Group (Banks) 53,668
11 Forbo Holding AG (Building Materials) 5,181
79 George Fischer AG (Machinery) 27,288
4 Jelmoli Holding AG (Merchandising) 4,773
4 Movenpick Holdings (Leisure) 1,984
31 Nestle SA (Food & Beverage) 56,790
65 Novartis AG (Health) 95,440
3 Pargesa Holding AG (Financial Services) 4,899
8 Roche Holding AG (Health) 94,957
2 Roche Holding AG-CHF100 (Health) 32,657
6 Schindler Holding AG-PTG Certificates (Machinery) 9,609
65 Sulzer AG * (Industrial Equipment) 42,250
21 Swiss Re (Insurance) 43,139
228 Swisscom AG (Telecommunications) 92,214
111 Valora Holding AG (Merchandising) 29,697
-----------
706,461
------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $10,783,102) $12,885,988
------------------------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $10,783,102) $12,885,988
------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
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 CORE SM INTERNATIONAL EQUITY FUND
Statement of Investments (continued)
December 31, 1999
<TABLE>
<S> <C> <C> <C>
Common and Pre-
ferred Stock Indus-
try Concentrations+
</TABLE>
<TABLE>
<S> <C> <C>
Airlines 1.2%
Appliance 3.8
Auto 5.0
Banks 15.4
Broadcasting 0.7
Building Materials 0.1
Business Services 4.0
Chemicals 2.0
Commercial Banks 0.1
Computer Hardware 2.0
Computer Software 0.1
Construction 2.0
Defense/Aerospace 0.3
Diversified Industrial
Manufacturing 0.1
Electrical Equipment 6.6
Electrical Utilities 3.6
Electronics Equipment 0.3
Energy Resources 5.0
Financial Services 3.5
Food & Beverage 1.4
Health 5.9
Industrial Equipment 0.3
Industrial Services 0.1
Insurance 4.4
Leisure 0.1
Machinery 1.7
Merchandising 2.2
Metals 0.3
Multi-Industrial 2.2
Nonferrous Metals 0.1
Office 0.1
Paper 1.1
Publishing 0.5
Railroads 1.3
Real Estate 1.6
Ship Transportation 0.5
Specialty Retail 0.3
Steel 0.2
Telecommunications 16.4
Tobacco 0.7
Transporation 0.3
Utilities 2.1
Wholesale 0.4
-------------------------------
TOTAL COMMON AND PRE-
FERRED STOCK 100.0%
-------------------------------
</TABLE>
+ Industry concentrations greater than one tenth of one percent are
disclosed.
The accompanying notes are an integral part of these financial statements.
52
<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 annual report covers the year
ended December 31, 1999.
Market Review
Europe--As the reporting period began, European equity mar-
kets rebounded after a period of weak performance. The pos-
itive sentiment surrounding the launch of the Euro was
short lived, however, as the markets retreated on news of
the peso devaluation, rising U.S. interest rates and slug-
gish production data in much of the region. In the second
half of the year, the strengthening of consumer and busi-
ness confidence, combined with high levels of merger and
take-over activity (caused by the heightened pace of con-
solidation in a number of sectors such as financials and
telecoms) buoyed markets. In the final quarter, technology-
oriented stocks exhibited phenomenal performance as invest-
ors clamored to get European-technology exposure.
Japan--The Japanese market performed strongly during the
period under review, with much of the rise attributed to
the stellar performance of a small number of stocks. Pri-
marily underpinning the market's strength were enhanced ex-
pectations for improvement in corporate fundamentals and
the macro-economy. Second, consolidation activity acceler-
ated in various industries, with the banking sector best
representing the overall trend toward strategic alliance.
Third, a series of launches of telecom/technology mutual
funds helped to substantially drive up the stock prices of
a small group of communications stocks, resulting in a con-
siderable contraction of market breadth.
Asia--During the reporting period, Asian stocks as a whole
rebounded. In Korea, investors were encouraged by the gov-
ernment's progress in implementing IMF financial reforms.
India's market rose dramatically during the first quarter,
only to suffer steep losses later in the reporting period
due to political upheaval that ended with the fall of the
existing government. In Thailand, unprecedented debt re-
structuring in the real estate sector made no impact, as an
inability to raise sufficient capital hurt banks and other
financial institutions' ability to restructure their debt
loads.
Performance Review
For the year ended December 31, 1999 the Fund generated a
31.85% aggregate total return. Over the same time period,
the Fund's benchmark, the MSCI EAFE (unhedged) Index, gen-
erated a total return of 27.29%. The FT/Actuaries EuroPac
Total Return Index (unhedged, with dividends reinvested)
generated an aggregate total return of 30.27%.
Investment Objective and Strategies
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.
53
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND
Shareholder Letter (continued)
Benchmark Change
Since December 1, 1999, we have been reporting and evaluat-
ing the Fund's risk profile against the MSCI EAFE
(unhedged) Index (previously, the Fund's benchmark was the
FT/Actuaries EuroPac Total Return Index).
Portfolio Composition
Top 10 Portfolio Holdings as of December 31, 1999*
<TABLE>
<CAPTION>
Percentage of
Company Country Line of Business Net Assets
------- ------- ---------------- -------------
<S> <C> <C> <C>
Nokia Oyj Finland Telecommunications 2.5%
British Telecom PLC Britain Telecommunications 2.0
Ericsson
Telecommunications
Series B Sweden Electrical Equipment 1.7
Telefonica de
Espana SA Spain Telecommunications 1.7
VNU NV Netherlands Media 1.7
Mannesmann AG Germany Telecommunications 1.7
Rohm Co. Japan Electrical Equipment 1.6
Total Fina SA Class
B France Energy Resources 1.5
Nippon Telephone &
Telegraph Corp. Japan Telecommunications 1.4
Glaxo Wellcome PLC Britain Health 1.4
</TABLE>
* Opinions expressed in this report represent our present
opinions only. Reference to individual securities should
not be construed as a commitment 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 a recommendation 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 are positive on the outlook for European equi-
ties. Growth continues to strengthen across the region in
the relative absence of inflation. Long-term prospects are
enhanced by ongoing structural reform in the pension and
savings industry, which we expect over time will lead to
highly significant inflows of funds into equity markets. In
addition, there continues to be profound structural change
taking place in the corporate sector, which is now truly
cross-border in nature. At the sector level, the relatively
narrow internet representation across Europe's markets has
rekindled interest in providers of product in related in-
dustries--such as infrastructure and software providers,
media companies and cable operators--thus providing invest-
ment opportunities.
Japan--Looking ahead to the next six months, we are cau-
tiously optimistic about the market. Interim results an-
nounced during the past three months were better than
initial company forecasts, encouragingly a view that corpo-
rate profits were on a recovery path. Many companies are in
the process of implementing restructuring plans that were
announced in early 1999. We believe these plans will but-
tress earnings, even during a period of contracting reve-
nues. Any change in market sentiment toward growth-
oriented, telecom-related stocks
54
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND
whose valuations are already stretched after a substantial
year-long rise is a potential market risk.
Asia--Powerful economic growth in Asia should continue into
2000. Whereas exports to the U.S. and Europe originally led
Asia out of its financial crisis, we believe growth in 2000
will be characterized by increasing domestic demand, intra-
regional trade and the revival of the Japanese market. This
should help insulate Asia from a slowdown or tighter li-
quidity in the Western markets. At the sector level, strong
global growth should feed into higher commodity prices
which will benefit commodity exporters such as Australia
and New Zealand. Technology will also remain an important
sector, despite the global overvaluation in certain
"dot.com' shares. Asia's dominance in many technologies is
built on the foundation of competitive, focused companies
that continue to trade at compelling valuations.
We thank you for your investment and look forward to your
continued confidence.
Goldman Sachs International Equity Management Team
January 31, 2000
55
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND
Performance Summary
December 31, 1999
The following graph shows the value as of December 31, 1999, of a $10,000 in-
vestment made on January 12, 1998 (commencement of operations). For compara-
tive purposes, the performance of the Fund's benchmarks (FT Euro-Pac
Unhedged) and the Morgan Stanley Capital International Europe, Australia and
Far East Index ("MSCI EAFE (unhedged)") are shown. This performance data rep-
resents past performance and should not be considered indicative of future
performance which will fluctuate with changes in market conditions. These
performance fluctuations will cause an investor's shares, when redeemed, to
be worth more or less than their original cost.
International Equity Fund's Lifetime Performance
Growth of a $10,000 investment, Distributions Reinvested January 12, 1998 to
December 31, 1999
[GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND'S LIFETIME
PERFORMANCE GRAPH APPEARS HERE]
Intl Equity FT Euro-Pac MSCI EAFE
Fund Unhedged (unhedged)
1/12/98 10,000 10,000 10,000
1/31/98 10,350 10,789 10,460
2/98 11,040 11,478 11,134
3/98 11,671 11,802 11,479
4/98 11,841 11,845 11,572
5/98 12,131 11,820 11,519
6/98 11,952 11,835 11,608
7/98 11,982 11,911 11,729
8/98 10,702 10,442 10,278
9/98 10,352 10,162 9,966
10/98 10,832 11,245 11,007
11/98 11,402 11,861 11,574
12/98 12,007 12,284 12,034
1/99 12,206 12,234 12,001
2/99 11,871 11,965 11,718
3/99 12,121 12,516 12,210
4/99 12,310 13,093 12,707
5/99 11,815 12,420 12,055
6/99 12,316 12,941 12,528
7/99 12,717 13,391 12,903
8/99 12,936 13,568 12,954
9/99 12,984 13,709 13,087
10/99 13,506 14,220 13,581
11/99 14,449 14,772 14,055
12/99 15,798 16,001 15,318
<TABLE>
<CAPTION>
Since Inception One year
Average Annual Total Return through December 31,
1999
<S> <C> <C>
International Equity Fund (commenced January 12,
1998) 26.26% 31.85%
---------------------------------------------------------------------------
</TABLE>
56
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND
Statement of Investments
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - 86.2%
Australia - 2.7%
1,700 AMP Ltd. (Life Insurance) $ 18,783
2,800 Australia & New Zealand Banking Group Ltd. (Banks) 20,369
600 Brambles Industries Ltd. (Multi-Industrial) 16,592
4,100 Broken Hill Proprietary Co. Ltd. (Nonferrous Metals) 53,836
11,200 Cable & Wireless Optus Ltd.* (Telecommunications) 37,426
3,800 Coles Myer Ltd. (Specialty Retail) 19,628
2,500 Commonwealth Bank of Australia (Banks) 43,050
9,800 Foster's Brewing Group Ltd. (Food & Beverage) 28,115
1,868 Lend Lease Corp. Ltd. (Financial Services) 26,170
3,400 National Australia Bank (Banks) 52,008
3,700 News Corp. Ltd. (Media) 35,926
1,800 Pioneer International Ltd. (Construction) 5,424
2,300 Rio Tinto Ltd. (Mining) 49,407
2,950 Tab Corp. Holdings Ltd. (Entertainment) 19,975
7,000 Telstra Corp. (Utilities) 38,051
3,100 Westpac Banking Corp. (Banks) 21,383
3,400 WMC Ltd. (Mining) 18,750
4,300 Woodside Petroleum Ltd. (Oil Services) 31,758
4,300 Woolworths Ltd. (Specialty Retail) 14,792
-----------
551,443
------------------------------------------------------------------------------
Belgium - 0.6%
712 Dexia NPV (Banks) 117,985
712 Dexia NPV Strips* (Banks) 14
-----------
117,999
------------------------------------------------------------------------------
Britain - 17.3%
15,076 Allied Zurich PLC (Insurance) 177,772
3,004 AstraZeneca Group PLC (Health) 124,803
5,303 Barclays PLC (Banks) 152,388
21,824 BP Amoco PLC (Energy Resources) 220,299
10,363 British Aerospace PLC (Defense/Aerospace) 68,129
16,880 British Telecom PLC (Telecommunications) 408,994
2,874 Carlton Communications PLC (Media) 27,993
1,564 Colt Telecom Group PLC* (Telecommunications) 80,741
9,631 Diageo PLC (Tobacco) 76,851
1,410 Energis PLC* (Telecommunications) 67,758
9,974 Glaxo Wellcome PLC (Health) 282,587
11,937 HSBC Holdings PLC (Banks) 165,438
9,204 Lloyds TSB Group PLC (Banks) 114,329
9,745 Marconi PLC (Telecommunications) 171,893
6,379 Misys PLC (Business Services) 99,021
------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Britain - continued
6,258 National Westminster Bank PLC (Banks) $ 134,444
15,430 Reckitt Benckiser PLC (Food & Beverage) 146,055
19,359 Reuters Group PLC (Business Services) 268,927
15,042 Shell Transport & Trading Co. (Energy Resources) 125,010
5,402 SmithKline Beecham (Health) 68,498
22,417 Stagecoach Holdings PLC (Railroads) 57,574
12,870 Thus PLC* (Telecommunications) 81,285
11,173 Unilever PLC (Food & Beverage) 82,117
55,525 Vodafone AirTouch PLC (Telecommunications) 276,773
-----------
3,479,679
-------------------------------------------------------------------------------
China - 0.5%
17,000 China Telecom Ltd.* (Telecommunications) 106,066
-------------------------------------------------------------------------------
Denmark - 0.3%
1,012 ISS International Service System Series B* (Business
Services) 68,070
-------------------------------------------------------------------------------
Finland - 2.6%
6,231 Merita PLC* (Banks) 36,656
2,736 Nokia Oyj (Telecommunications) 496,100
-----------
532,756
-------------------------------------------------------------------------------
France - 9.7%
1,265 Accor SA (Hotels) 61,128
767 Air Liquide SA (Chemicals) 128,412
3,342 Alstom (Electrical Equipment) 111,433
933 Axa (Insurance) 130,076
294 Carrefour SA (Specialty Retail) 54,227
2,116 Compagnie Generale des Etablissements Michelin (Auto) 83,131
1,013 Equant* (Computer Software) 115,004
7,386 Rhodia (Chemicals) 166,960
4,436 Rhone-Poulenc SA (Chemicals) 257,839
781 Societe Generale (Banks) 181,737
848 ST Microelectronics (Semiconductors) 130,527
2,278 Total Fina SA Class B (Energy Resources) 304,053
2,589 Vivendi (Business Services) 233,810
-----------
1,958,337
-------------------------------------------------------------------------------
Germany - 6.3%
380 Allianz AG (Property Insurance) 127,661
2,257 BASF AG (Chemicals) 115,953
520 Deutsche Bank AG (Banks) 43,922
1,669 Deutsche Telekom AG (Telecommunications) 118,866
2,366 Epcos* (Electronics Equipment) 177,563
797 HypoVereinsbank (Banks) 54,434
-------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
57
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND
Statement of Investments (continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Germany - continued
1,380 Mannesmann AG (Telecommunications) $ 332,939
194 Muenchener Rueckversicherungs-Gesellschaft AG
(Property Insurance) 49,208
1,988 Preussag AG (Multi-Industrial) 110,744
1,086 Siemens AG (Electrical Equipment) 138,170
-----------
1,269,460
---------------------------------------------------------------------------
Hong Kong - 2.4%
19,800 Cable & Wireless HKT Ltd. (Telecommunications) 57,183
5,000 Cheung Kong Holdings Ltd. (Real Estate) 63,356
5,000 CLP Holdings Ltd. (Utilities) 23,027
42,000 Giordano International Ltd. (Apparel) 43,224
3,000 Hang Seng Bank Ltd. (Banks) 34,251
22,000 Hong Kong & China Gas Co. Ltd. (Utilities) 30,141
13,000 Hutchison Whampoa Ltd. (Financial Services) 188,975
10,000 New World China Land Ltd.* (Real Estate) 3,698
15,000 New World Development Co. Ltd. (Real Estate) 33,769
-----------
477,624
---------------------------------------------------------------------------
Ireland - 0.4%
9,433 Bank of Ireland (Banks) 75,068
---------------------------------------------------------------------------
Italy - 2.6%
36,115 Banca di Roma (Banks) 46,422
13,175 ENI SpA (Energy Resources) 72,464
8,046 San Paolo-IMI SpA (Banks) 109,338
46,490 Seat Pagine Gialle SpA* (Media) 102,562
9,815 Telecom Italia SpA (Telecommunications) 138,420
12,821 Unicredito Italiano SpA (Banks) 63,026
-----------
532,232
---------------------------------------------------------------------------
Japan - 20.8%
2,300 Aderans Co. Ltd. (Specialty Retail) 85,544
1,000 Advantest Corp. (Electrical Equipment) 264,265
18,000 Asahi Chemical Industry Co. Ltd. (Chemicals) 92,493
12,000 Asahi Glass Co. Ltd. (Home Products) 92,904
3,000 Bridgestone Corp. (Auto) 66,066
3,000 Canon, Inc. (Computer Hardware) 119,213
20,000 Chiba Bank Ltd. (Banks) 110,796
4,000 Circle K Japan Co. (Specialty Retail) 164,040
5,000 Daiwa Securities Group, Inc. (Financial Services) 78,252
1,100 FANUC Ltd. (Electronics Equipment) 140,070
2,000 Fuji Photo Film Ltd. (Leisure) 73,016
3,000 Fujitsu Ltd. (Computer Hardware) 136,831
1,000 Honda Motor Co. Ltd. (Auto) 37,193
---------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Japan - continued
5,000 Kao Corp. (Food & Beverage) $ 142,654
9,000 Kirin Brewery Ltd. (Alcohol) 94,695
500 Konami Co. Ltd. (Computer Software) 89,312
22,000 Mitsui Marine & Fire (Insurance) 130,488
500 Nintendo Co. Ltd. (Entertainment) 83,097
17 Nippon Telephone & Telegraph Corp.
(Telecommunications) 291,181
5 NTT Mobile Communications Network, Inc.
(Telecommunications) 192,327
7,000 Ricoh Co. Ltd. (Computer Hardware) 131,957
800 Rohm Co. (Electrical Equipment) 328,864
3,000 Shin-Etsu Chemical Co. Ltd. (Chemicals) 129,196
700 SMC Corp. (Machinery) 154,908
1,200 Takefuji Corp. (Financial Services) 150,220
1,000 TDK Corp. (Computer Hardware) 138,103
4,000 Terumo Corp. (Medical Products) 106,881
11,000 The Bank of Tokyo-Mitsubishi (Banks) 153,313
6,000 The Fuji Bank Ltd. (Banks) 58,315
3,300 Tokyo Electric Power (Electrical Utilities) 88,500
2,700 Toppan Forms Co. Ltd. (Publishing) 72,673
5,000 Yamanouchi Pharmaceutical Co., Ltd. (Drugs) 174,709
1 Yoshinoya D&C Co. Ltd. (Restaurants) 17,618
-----------
4,189,694
------------------------------------------------------------------------------
Netherlands - 7.7%
1,001 Aegon NV (Financial Services) 96,702
3,157 Fortis Netherlands NV (Financial Services) 113,692
2,458 Getronics NV (Business Services) 196,104
2,798 ING Groep NV* (Financial Services) 168,945
1,952 Koninklijke Royal Philips Electronics NV (Appliance) 265,457
2,230 KPN NV (Telecommunications) 217,675
3,843 Libertel NV* (Telecommunications) 100,652
1,949 TNT Post Group NV (Business Services) 55,857
6,407 VNU NV (Media) 336,774
-----------
1,551,858
------------------------------------------------------------------------------
New Zealand - 0.1%
3,200 Telecom Corp. of New Zealand Ltd. (Utilities) 15,048
------------------------------------------------------------------------------
Singapore - 1.0%
3,000 Chartered Semiconductor Manufacturing Ltd.*
(Semiconductors) 16,391
1,000 City Developments (Real Estate) 5,854
6,489 DBS Group Holdings Ltd. (Banks) 106,364
7,000 First Capital Corp. Ltd. (Real Estate) 9,331
1,000 Singapore Airlines Ltd. (Airlines) 11,348
------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
58
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C> <C>
Common Stocks - (continued)
Singapore - continued
1,000 Singapore Press Holdings Ltd. (Publishing) $ 21,675
14,000 Singapore Technologies Engineering Ltd. (Machinery) 21,687
6,000 Singapore Telecommunications Ltd.
(Telecommunications) 12,393
-----------
205,043
-----------------------------------------------------------------------------
Spain - 3.8%
2,243 Acerinox SA (Steel) 89,679
6,783 Altadis (ex Tabacalera SA) (Tobacco) 96,480
10,986 Banco Santander Central Hispano SA (Banks) 124,390
5,006 Endesa SA (Electrical Utilities) 99,394
13,863 Telefonica de Espana SA* (Telecommunications) 346,329
-----------
756,272
-----------------------------------------------------------------------------
Sweden - 4.1%
5,483 Ericsson Telecommunications Series B (Electrical
Equipment) 352,474
15,014 Nordbanken Holding AB (Banks) 88,224
12,395 Securitas AB Series B (Business Services) 224,331
5,205 Skandia Forsakring (Insurance) 157,208
-----------
822,237
-----------------------------------------------------------------------------
Switzerland - 3.3%
58 Nestle SA (Food & Beverage) 106,253
111 Novartis AG (Health) 162,983
14 Roche Holding AG (Health) 166,175
25 Swiss Re (Property Insurance) 51,356
636 UBS AG (Banks) 171,752
-----------
658,519
-----------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $13,289,929) $17,367,405
-----------------------------------------------------------------------------
Preferred Stock - 1.0%
Germany - 1.0%
319 SAP AG (Computer Software) $ 192,164
-----------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $140,228) $ 192,164
-----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
<S> <C> <C> <C>
Short-Term Obligation - 11.5%
State Street Bank & Trust Euro Time Deposit/\
$2,311,000 4.00% 01/03/2000 $ 2,311,000
-----------------------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATION
(Cost $2,311,000) $ 2,311,000
-----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $15,741,157) $19,870,569
-----------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
/\ A portion of this security is segregated as collateral for initial margin
requirements on future transactions.
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.
59
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND
Statement of Investments (continued)
December 31, 1999
<TABLE>
<CAPTION>
Common and Preferred
Stock Industry As a % of
Classifications+ total net assets
<S> <C>
Airlines 0.1%
Alcohol 0.5
Apparel 0.2
Appliance 1.3
Auto 0.9
Banks 11.3
Business Services 5.7
Chemicals 4.4
Computer Hardware 2.6
Computer Software 2.0
Defense/Aerospace 0.3
Drugs 0.9
Electrical Equipment 5.9
Electrical Utilities 0.9
Electronics
Equipment 1.6
Energy Resources 3.6
Entertainment 0.5
Financial Services 4.1
Food & Beverage 2.5
Health 4.0
Home Products 0.5
Hotels 0.3
Insurance 2.9
Leisure 0.4
Life Insurance 0.1
Machinery 0.9
Media 2.5
Medical Products 0.5
Mining 0.3
Multi-Industrial 0.6
Nonferrous Metals 0.3
Oil Services 0.2
Property Insurance 1.1
Publishing 0.5
Railroads 0.3
Real Estate 0.6
Restaurants 0.1
Semiconductors 0.7
Specialty Retail 1.7
Steel 0.4
Telecommunications 17.6
Tobacco 0.9
Utilities 0.5
----------------------------------------------------
TOTAL COMMON AND PREFERRED STOCK 87.2%
----------------------------------------------------
</TABLE>
+ Industry concentrations greater than one tenth of one percent are
disclosed.
The accompanying notes are an integral part of these financial statements.
60
<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 annual report covers the
period from April 1, 1999, when the Fund began operations, through December
31, 1999.
Market Review
Early in the period under review, virtually all non-Trea-
sury sectors benefited from the gradual stabilization of
the global financial markets and investors' renewed toler-
ance for risk. Emerging economic data that pointed to a
stable U.S. economy further encouraged bond market perfor-
mance. This was short-lived, however, as economic indica-
tors that are critical in determining the Federal Open
Market Committee's position on monetary policy came in
higher than expected.
During the second half of the period, the Federal Reserve
Board (the "Fed") initiated a series of rate hikes due to
Committee Chairman Alan Greenspan's perception that the
U.S. economy was growing at a faster pace than preferred.
At period end, however, despite continued signs of very
strong gross domestic product growth, the Fed, as expected,
left rates unchanged at its December 21 meeting. The Fed's
desire to avoid pre-Y2K market disruptions was a main fac-
tor behind its decision not to tighten. Trading in the
fixed income markets tapered off, as investor unwillingness
to take positions before year-end combined with investor
concerns over Y2K issues.
Performance Review
From April 1, 1999 through December 31, 1999, the Fund gen-
erated a 1.41% cumulative total return. This compares to
the 1.64% cumulative total return of its benchmark, the
Two-year U.S. Treasury Security.
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
<TABLE>
<CAPTION>
Percentage of
Sector Net Assets
------ -------------
<S> <C>
Fixed Rate Pass-Throughs 35.3%
Collateralized Mortgage Obligations 24.8
Asset Backed Securities 19.9
U.S. Treasury Obligations 12.3
Agency Debentures 4.7
Cash Equivalent 1.9
</TABLE>
61
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST SHORT DURATION GOVERNMENT FUND
Shareholder Letter (continued)
Outlook
Although current spreads in the mortgage market are provid-
ing less of a cushion against widening than they have in
the recent past, solid fundamentals--stable-to-modestly
higher Treasury rates and diminished prepayment uncertain-
ty--argue against paring back the Fund's exposure at this
time. Therefore, we will continue to emphasize lower vola-
tility collateral within the pass-through sector, and well-
structured PACs and sequentials in the CMO sector.
We thank you for your investment and look forward to your
continued confidence.
Goldman Sachs Fixed Income Management Team
January 31, 2000
62
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST SHORT DURATION GOVERNMENT FUND
Performance Summary
December 31, 1999
The following graph shows the value as of December 31, 1999, of a $10,000 in-
vestment made on April 1, 1999 (commencement of operations). For comparative
purposes, the performance of the Fund's benchmark (the Two-Year U.S. Treasury
Security) is shown. This performance data represents past performance and
should not be considered indicative of future performance which will fluctu-
ate with changes in market conditions. These performance fluctuations will
cause an investor's shares, when redeemed, to be worth more or less than
their original cost.
Short Duration Government Fund's Lifetime Performance
Growth of a $10,000 Investment, Distributions Reinvested April 1, 1999 to
December 31, 1999
[GOLDMAN SACHS VARIABLE INSURANCE TRUST SHORT DURATION GOVERNMENT FUND'S
LIFETIME PERFORMANCE GRAPH APPEARS HERE]
Two-Year
Short Duration U.S. Treasury
Government Fund Security
4/1/99 10,000 10,000
4/30/99 10,020 10,022
5/99 9,990 10,007
6/99 9,980 10,030
7/99 9,980 10,053
8/99 9,980 10,076
9/99 10,080 10,136
10/99 10,110 10,141
11/99 10,150 10,156
12/99 10,142 10,166
<TABLE>
<CAPTION>
Since Inception
Aggregate Total Return through December 31, 1999(a)
<S> <C>
Short Duration Government Fund (commenced April 1,
1999) 1.41%
----------------------------------------------------------------------------
</TABLE>
(a) Represents aggregate total return since the Fund has not been in
operation for a full 12 months.
63
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST SHORT DURATION GOVERNMENT FUND
Statement of Investments
December 31, 1999
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
<C> <S> <C> <C>
Agency Debentures - 4.7%
Federal National Mortgage Association
(FNMA)
$500,000 5.75% 04/15/2003 $ 485,452
-------------------------------------------
TOTAL AGENCY DEBENTURES
(Cost $491,572) $ 485,452
-------------------------------------------
Asset-Backed Securities - 19.9%
Auto - 9.3%
Americredit Automobile Receivables
Series 1997-D, Class A3
$300,000 6.24% 09/05/2003 $ 297,384
Americredit Automobile Receivables Trust
Series 1999-D, Class A1
458,889 6.41 02/12/2002 457,933
Onyx Acceptance Auto Trust Series 1999-D,
Class A4
200,000 7.00 11/15/2004 199,732
----------
$ 955,049
-------------------------------------------
Credit Card - 3.9%
Fingerhut Master Trust Series 1998-1,
Class A
$400,000 6.07% 02/15/2005 $ 397,044
----------
$ 397,044
-------------------------------------------
Home Equity - 6.7%
Advanta Mortgage Loan Trust Series
1997-3, Class A4
$250,000 6.87% 09/25/2021 $ 248,750
Southern Pacific Secured Assets Corp.
Series 1998-1, Class A2
450,000 6.27 02/25/2018 444,861
----------
$ 693,611
-------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $2,066,053) $2,045,704
-------------------------------------------
Mortgage Backed Obligations - 60.1%
Federal Home Loan Mortgage
Corp. (FHLMC) - 8.8%
$950,855 6.00% 05/01/2014 $ 902,713
----------
$ 902,713
-------------------------------------------
Federal National Mortgage Association
(FNMA) - 17.9%
$962,661 6.50% 02/01/2029 $ 907,000
843,540 6.50 07/01/2029 795,298
155,270 6.50 11/01/2029 146,390
----------
$1,848,688
-------------------------------------------
Government National Mortgage Association
(GNMA) - 8.6%
$ 14,967 7.00% 05/15/2023 $ 14,556
883,631 7.00 07/15/2023 859,331
14,942 7.00 09/15/2023 14,531
----------
$ 888,418
-------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
<C> <S> <C> <C>
Mortgage Backed Obligations - continued
Collateralized Mortgage Obligations - 24.8%
Inverse Floater# - 0.9%
FHLMC Series 1693, Class S
$102,171 6.23% 09/15/2008 $ 94,916
-----------
$ 94,916
---------------------------------------------------------------------
Regular Floater CMOs # - 5.0%
FHLMC Series 1454, Class L
$170,174 5.99% 04/15/2022 $ 170,382
FHLMC Series 1510, Class JA
348,757 6.09 05/15/2013 346,898
-----------
$ 517,280
---------------------------------------------------------------------
Sequential Fixed Rate CMOs - 18.9%
FHLMC Series 1693, Class Z
$352,694 6.00% 03/15/2009 $ 311,612
FHLMC Series 1998, Class DB
326,322 9.50 01/17/2025 340,044
FHLMC Series 2152, Class AB
481,732 6.25 01/15/2026 456,027
FNMA Remic Trust Series 1992-6, Class Z
451,856 7.50 01/25/2021 452,181
INMC Series 1994-Q, Class A11
385,836 7.50 09/25/2014 381,789
-----------
$ 1,941,653
---------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $2,606,840) $ 2,553,849
---------------------------------------------------------------------
TOTAL MORTGAGE BACKED OBLIGATIONS
(Cost $6,336,834) $ 6,193,668
---------------------------------------------------------------------
U.S. Treasury Obligations - 12.3%
United States Treasury Notes
$280,000 5.63% 11/30/2000 $ 278,818
900,000 5.25 05/31/2001 888,471
100,000 6.63 07/31/2001 100,609
---------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,277,982) $ 1,267,898
---------------------------------------------------------------------
Repurchase Agreement - 1.9%
Joint Repurchase Agreement Account II/\
$200,000 3.16% 01/03/2000 $ 200,000
---------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $200,000) $ 200,000
---------------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $10,372,441) $10,192,722
---------------------------------------------------------------------
</TABLE>
# Variable rate security, coupon rate disclosed is that which is in effect at
December 31, 1999.
/\A portion of this security is segregated as collateral for initial margin
requirements on futures transactions.
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.
64
<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 annual report covers the year ended
December 31, 1999.
Market Review
. The Dollar Bloc--Early in the period a weak global
economy and few signs of U.S. inflation led the Federal
Reserve Board (the "Fed") to ease credit--a stance that
was reversed later in the year amid higher-than-expected
growth rates. In the ensuing months, with no slowdown in
growth, low and falling unemployment, and an increase in
commodity prices, the general consensus was that it
wouldn't be long before the Fed moved to raise rates, and
hence yields rose significantly across the curve. Thus,
the move was expected when it came, and had already im-
pacted the bond market. The Fed's adoption of a post-rate
hike neutral stance prompted a market rally. As the year
drew to a close, strong growth and building inflationary
pressures, particularly in the labor market, pushed U.S.
Treasury yields higher.
Elsewhere in the dollar bloc, New Zealand, Canada and Aus-
tralia bonds initially outperformed U.S. Treasuries, as
the U.S. market sold off on strong growth. However for the
remainder of the period, New Zealand and Australia
underperformed the U.S., while Canadian bonds outpaced the
U.S. market.
. Europe--Initially, coordinated cuts in interest rates,
generally by larger-than-expected margins, helped the Eu-
ropean markets to outperform U.S. Treasuries. As the pe-
riod progressed, however, a series of stronger-than-
anticipated economic releases appeared across Europe and
the UK; it soon became apparent that Europe was in the
midst of a broad-based recovery. Bond yields rose in re-
sponse to expectations that the European Central Bank
would move to raise rates by half a percentage point by
year end.
. Japan--At the start of the period, despite an extremely
weak economy and deflationary pressures, the Japanese
bond market fell sharply following a Government announce-
ment that the Trust Fund Bureau (TFB) would no longer be
purchasing government bonds. This was followed by a pro-
longed rally that resulted from a number of factors, in-
cluding a softening of the Government position on TFB
purchases and increased liquidity from the Bank of Japan.
More recently, bond yields moved higher in the wake of
improved economic conditions and indications that further
fiscal stimulus was in the offing.
Performance Review
For the year ended December 31, 1999, the Fund generated a
-1.01% aggregate total return. Over the same time period,
the Fund's benchmark, the JP Morgan Global Government Bond
Index (hedged into U.S. dollars), generated an aggregate
total return of 0.72%.
The Portfolio's underperformance versus its benchmark is
attributable to several factors. A move to an underweight
position in Japanese bonds early in 1999 was detrimental to
perfor-
65
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST GLOBAL INCOME FUND
Shareholder Letter (continued)
mance when that market experienced an extended rally begin-
ning mid-year. Additionally, an overweighting to European
bonds detracted from performance late in the period when,
despite a subdued inflationary environment, the European
market reacted to signs that the economy was growing at a
strong pace. Finally, the UK had a negative impact on per-
formance when the yield curve underwent a sharp inversion.
(From March 31, 1999 through October 31, 1999, the 30-year
yield remained unchanged, while the five-year yields rose
1.50%.)
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 (by currency) as of December 31,
1999*
<TABLE>
<CAPTION>
Percentage
Bonds Denomination of Net Assets
------------------ --------------
<S> <C>
United States Dollar 29.0%
Euro Currency 28.5
Japanese Yen 16.5
Great Britain Pound 9.8
Cash Equivalents 4.5
Canadian Dollar 2.0
Swedish Krona 1.7
New Zealand Dollar 1.5
Danish Krone 1.3
German Mark 0.7
</TABLE>
* Opinions expressed in this report represent our present
opinions only. Reference to individual securities should
not be construed as a commitment 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 a recommendation 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 presently favor the U.S. bond market relative to the Eu-
ropean bond markets. This position is based on our opinion
that the U.S. is at the end of a growth cycle, while the
European economies appear poised to enter a period of sus-
tained growth. Although a recent 50-basis-point rate in-
crease by the European Central Bank (ECB) is likely to
leave rates on hold until late in the first quarter of
2000, we believe continued growth will reduce excess capac-
ity. This will likely lead to further rate increases by the
ECB, which in turn will place further upward pressure on
yields, particularly in the shorter maturities.
66
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST GLOBAL INCOME FUND
In Japan, we expect continuing improvement in growth, com-
bined with further fiscal stimulus (in the form of a US$17
billion stimulus package), will weigh heavily on the bond
market. However, we do not foresee a dramatic increase in
Japanese interest rates, as the "zero interest rate" policy
adopted by the Bank of Japan is likely to remain in place
through much of 2000.
We thank you for your investment and look forward to your
continued confidence.
Goldman Sachs Global Income Management Team
London, January 31, 2000
67
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST GLOBAL INCOME FUND
Performance Summary
December 31, 1999
The following graph shows the value as of December 31, 1999, of a $10,000 in-
vestment made on January 12, 1998. For comparative purposes, the performance
of the Fund's benchmark (the J.P. Morgan Global Government Bond Index hedged
to U.S. Dollars (the "J.P. Morgan GGB Index - $ Hedged")) is shown. This per-
formance data represents past performance and should not be considered indic-
ative of future performance which will fluctuate with changes in market
conditions. These performance fluctuations will cause an investor's shares,
when redeemed, to be worth more or less than their original costs.
Global Income Fund's Lifetime Performance
Growth of a $10,000 Investment, Distributions Reinvested January 12, 1998 to
December 31, 1999
[GOLDMAN SACHS VARIABLE INSURANCE TRUST GLOBAL INCOME FUND'S
LIFETIME PERFORMANCE GRAPH APPEARS HERE]
Global J.P. Morgan GGB
Income Fund Index - $ (Hedged)
1/12/98 10,000 10,000
1/31/98 9,950 9,993
2/98 9,980 10,034
3/98 10,090 10,099
4/98 10,130 10,149
5/98 10,250 10,276
6/98 10,270 10,350
7/98 10,340 10,416
8/98 10,530 10,653
9/98 10,840 10,925
10/98 10,750 10,901
11/98 10,810 10,978
12/98 10,829 10,977
1/99 10,934 11,088
2/99 10,766 10,940
3/99 10,839 11,040
4/99 10,933 11,144
5/99 10,808 11,077
6/99 10,672 10,952
7/99 10,650 10,929
8/99 10,629 10,941
9/99 10,681 10,997
10/99 10,692 11,019
11/99 10,723 11,056
12/99 10,719 11,056
<TABLE>
<CAPTION>
Since Inception One Year
Average Annual Total Return through December 31, 1999
<S> <C> <C>
Global Income Fund (commenced January 12, 1998) 3.59% -1.01%
---------------------------------------------------------------------------------
</TABLE>
68
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST GLOBAL INCOME FUND
Statement of Investments
December 31, 1999
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount((Euro)) Rate Date Value
<C> <S> <C> <C>
Foreign Debt Obligations - 62.0%
Canadian Dollar - 2.0%
Government of Canada
CAD 200,000 6.00% 06/01/2008 $ 136,197
----------
$ 136,197
---------------------------------------------------------------------------------------------
Danish Krone - 1.3%
Kingdom of Denmark
DKK 600,000 8.00% 05/15/2003 $ 88,271
----------
$ 88,271
---------------------------------------------------------------------------------------------
Euro Currency - 28.5%
Federal Republic of Germany
EUR 150,000 3.00% 06/15/2001 $ 149,077
400,000 4.50 08/19/2002 403,524
50,000 5.25 01/04/2008 50,362
General Motors Acceptance Corp.+
100,000 5.00 01/18/2005 100,423
Government of France
100,000 4.00 10/25/2009 89,710
50,000 8.50 04/25/2023 65,970
150,000 5.50 04/25/2029 141,174
Lehman Brothers Holdings PLC
100,000 4.75 07/12/2004 96,383
Republic of Italy
400,000 4.50 04/15/2001 404,656
100,000 4.00 07/15/2004 96,524
100,000 6.50 11/01/2027 104,658
Royal Bank of Scotland Group PLC
100,000 4.88 03/26/2009 90,661
Standard Chartered Bank PLC
200,000 5.38 05/06/2009 183,499
----------
$1,976,621
---------------------------------------------------------------------------------------------
German Mark - 0.7%
Citicorp
DEM 100,000 5.50% 06/30/2010 $ 48,811
----------
$ 48,811
---------------------------------------------------------------------------------------------
Great Britain Pound - 9.8%
Abbey National Treasury
GBP 100,000 8.00% 04/02/2003 $ 165,166
GMAC Canada Ltd.
150,000 6.50 03/23/2004 235,632
United Kingdom Treasury
100,000 8.00 06/10/2003 169,848
50,000 9.00 08/06/2012 107,592
----------
$ 678,238
---------------------------------------------------------------------------------------------
Japanese Yen - 16.5%
Asian Development Bank
JPY30,000,000 5.63% 02/18/2002 $ 326,401
European Investment Bank
20,000,000 2.13 09/20/2007 204,984
Government of Japan
55,000,000 0.90 12/22/2008 499,377
Republic of Italy
10,000,000 3.80 03/27/2008 113,682
----------
$1,144,444
---------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount((Euro)) Rate Date Value
<S> <C> <C> <C>
Foreign Debt Obligations - (continued)
New Zealand Dollar - 1.5%
Government of New Zealand
NZD 100,000 5.50% 04/15/2003 $ 50,050
100,000 8.00 11/15/2006 54,390
----------
$ 104,440
---------------------------------------------------------------------------------------------
Swedish Krona - 1.7%
Kingdom of Sweden
SEK 1,000,000 5.00% 01/15/2004 $ 115,918
----------
$ 115,918
---------------------------------------------------------------------------------------------
TOTAL FOREIGN DEBT OBLIGATIONS
(Cost $4,368,003) $4,292,940
---------------------------------------------------------------------------------------------
Corporate Bonds - 11.1%
Automotive - 2.8%
Ford Motor Credit Corp.
USD 200,000 6.13% 04/28/2003 $ 193,510
----------
$ 193,510
---------------------------------------------------------------------------------------------
Finance Companies - 4.2%
Merrill Lynch Co., Inc.
USD 100,000 6.00% 02/12/2003 $ 96,903
Nederlandse Waterschapsbank
100,000 6.13 02/13/2008 93,592
Textron Financial Corp.
100,000 7.13 12/09/2004 98,796
----------
$ 289,291
---------------------------------------------------------------------------------------------
Insurance Companies - 1.3%
Prudential Insurance Company of America
USD 100,000 6.38% 07/23/2006 $ 92,490
----------
$ 92,490
---------------------------------------------------------------------------------------------
Yankee Bank - 2.8%
National Westminster Bank PLC
USD 200,000 7.38% 10/01/2009 $ 195,032
----------
$ 195,032
---------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $799,016) $ 770,323
---------------------------------------------------------------------------------------------
U.S. Treasury Obligations - 17.9%
United States Treasury Bonds
200,000 6.75% 08/15/2026 $ 200,938
350,000 6.13 11/15/2027 325,717
United States Treasury Notes
200,000 5.88 11/15/2005 194,156
104,083 3.63 01/15/2008 99,107
300,000 4.75 11/15/2008 264,609
160,000 6.00 08/15/2009 155,000
---------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,273,845) $1,239,527
---------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
69
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST GLOBAL INCOME FUND
Statement of Investments (continued)
December 31, 1999
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount((Euro)) Rate Date Value
<S> <C> <C> <C>
Short-Term Obligation - 4.5%
State Street Bank & Trust Euro Time Deposit
314,000 4.00% 01/03/2000 $ 314,000
---------------------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATION
(Cost $314,000) $ 314,000
---------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $6,754,864) $6,616,790
---------------------------------------------------------------------------------------------
</TABLE>
((ETheuprincipalramountoof)each)security is stated in the currency in which
the bond is denominated. See below.
CAD = Canadian Dollar
JPY = Japanese Yen
DEM = German MarkNZD = New Zealand Dollar
DKK = Danish Krone
SEK = Swedish Krona
EUR = Euro Currency
USD = United States Dollar
GBP = Great Britain Pound
+ Securities are exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold, normally to qualified
institutional buyers in transactions exempt from registration. Total
market-value of Rule 144A securities amounted to $100,423 at December 31,
1999.
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.
70
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Report of Independent Public Accountants
To the Shareholders and Board of Trustees of Goldman Sachs Variable Insurance
Trust
We have audited the accompanying statements of assets and liabilities of
Goldman Sachs Growth and Income Fund, CORE U.S. Equity Fund, CORE Large Cap
Growth Fund, CORE Large Cap Value Fund, CORE Small Cap Equity Fund, Capital
Growth Fund, Mid Cap Value Fund, CORE International Equity Fund, Interna-
tional Equity Fund, Short Duration Government Fund and Global Income Fund,
portfolios constituting the Goldman Sachs Variable Insurance Trust (a Dela-
ware Business Trust), including the statements of investments, as of December
31, 1999, and the related statements of operations and the statements of
changes in net assets and the financial highlights for the periods presented.
These financial statements and the financial highlights are the responsibil-
ity of the Funds' management. Our responsibility is to express an opinion on
these financial statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the finan-
cial statements. Our procedures included confirmation of securities owned as
of December 31, 1999 by correspondence with the custodian and brokers. An au-
dit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and the financial highlights re-
ferred to above present fairly, in all material respects, the financial posi-
tion of each of the respective portfolios constituting the Goldman Sachs
Variable Insurance Trust as of December 31, 1999, the results of their opera-
tions, the changes in their net assets and the financial highlights for the
periods presented, in conformity with generally accepted accounting princi-
ples.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
February 10, 2000
71
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Statements of Assets and Liabilities
December 31, 1999
<TABLE>
<CAPTION>
Growth and CORE U.S. CORE Large Cap CORE Large
Income Fund Equity Fund Growth Fund Cap Value Fund
Assets:
<S> <C> <C> <C> <C>
Investment in
securities, at value
(identified cost
$24,295,534,
$45,258,682,
$18,081,525, $3,359,448,
$11,597,770, $8,407,677,
$22,286,159,
$10,783,102,
$15,741,157,
$10,372,441, $6,754,864) $25,820,596 $50,641,982 $24,116,907 $3,490,631
Cash, at value 236,657 634,783 155,705 --
Receivables:
Investment securities
sold -- -- -- --
Dividends and interest,
at value 25,506 34,305 16,692 4,924
Fund shares sold 34,518 781,912 84,488 7,894
Forward foreign
currency exchange
contracts -- -- -- --
Variation margin 5,100 14,019 2,553 --
Reimbursement from
adviser 31,453 22,349 28,559 18,250
Deferred organization
expenses, net 12,549 12,912 12,912 --
Other assets 7,132 2,248 3,211 2,979
---------------------------------------------------------------------------------
Total assets 26,173,511 52,144,510 24,421,027 3,524,678
---------------------------------------------------------------------------------
Liabilities:
Due to Bank -- -- -- 9,835
Payables:
Investment securities
purchased 65,450 -- -- --
Fund shares repurchased 44,197 -- -- --
Amounts owed to
affiliates 24,173 34,176 21,465 12,314
Forward foreign
currency exchange
contracts -- -- -- --
Accrued expenses and
other liabilities 50,659 51,854 50,637 46,993
---------------------------------------------------------------------------------
Total liabilities 184,479 86,030 72,102 69,142
---------------------------------------------------------------------------------
Net Assets:
Paid-in capital 25,409,532 45,943,218 18,109,015 3,264,958
Accumulated
undistributed
(distributions in excess
of) net investment
income 226 -- 496 --
Accumulated net realized
gain (loss) on
investments, options,
futures and foreign
currency related
transactions (1,026,678) 627,665 167,355 59,395
Net unrealized gain
(loss) on investments,
options, futures and
translation of assets
and liabilities
denominated in foreign
currencies 1,605,952 5,487,597 6,072,059 131,183
---------------------------------------------------------------------------------
NET ASSETS $25,989,032 $52,058,480 $24,348,925 $3,455,536
---------------------------------------------------------------------------------
Total shares of
beneficial interest
outstanding, no par
value (unlimited shares
authorized) 2,387,172 3,723,503 1,540,670 325,555
Net asset value,
offering and redemption
price per share $ 10.89 $ 13.98 $ 15.80 $ 10.61
---------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
72
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
<TABLE>
<CAPTION>
Mid Cap Value CORE Short Duration Global
CORE Small Cap Capital Fund (formerly International International Government Income
Equity Fund Growth Fund Mid Cap Equity) Equity Fund Equity Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
$13,034,103 $10,346,389 $21,937,557 $12,885,988 $19,870,569 $10,192,722 $6,616,790
139,155 100,856 99,410 9,639 67,433 91,079 15,809
15,551 20,459 614,671 38,145 -- -- --
6,030 5,538 34,804 9,573 6,547 57,807 132,918
278,681 21,524 239,937 2,265 15,637 3,018 30,996
-- -- -- -- 3,235 -- 185,333
33,600 -- -- 241,995 3,344 --
45,578 29,073 26,983 38,397 41,461 11,592 32,222
12,912 13,775 13,786 -- 12,549 -- 12,549
2,292 2,442 2,324 10,016 18,794 -- 2,288
--------------------------------------------------------------------------------------------------------
13,567,902 10,540,056 22,969,472 12,994,023 20,278,220 10,359,562 7,028,905
--------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- --
11,761 21,895 1,012,569 -- -- -- --
-- 11,195 -- -- -- -- 3,797
15,135 14,042 20,952 19,124 24,025 15,056 13,382
-- -- -- -- 34,097 -- 37,787
53,252 42,678 53,626 86,186 60,909 39,177 50,015
--------------------------------------------------------------------------------------------------------
80,148 89,810 1,087,147 105,310 119,031 54,233 104,981
--------------------------------------------------------------------------------------------------------
12,300,084 8,449,936 22,739,296 10,599,252 15,711,511 10,569,389 7,080,363
-- -- -- (4,061) (115,894) -- (21,641)
(330,712) 61,598 (508,392) 190,810 342,312 (114,383) (128,713)
1,518,382 1,938,712 (348,579) 2,102,712 4,221,260 (149,677) (6,085)
--------------------------------------------------------------------------------------------------------
$13,487,754 $10,450,246 $21,882,325 $12,888,713 $20,159,189 $10,305,329 $6,923,924
--------------------------------------------------------------------------------------------------------
1,272,177 745,953 2,599,069 1,052,429 1,393,042 1,058,716 704,257
$ 10.60 $ 14.01 $ 8.42 $ 12.25 $ 14.47 $ 9.73 $ 9.83
--------------------------------------------------------------------------------------------------------
</TABLE>
73
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Statements of Operations
For the Year Ended December 31, 1999
<TABLE>
<CAPTION>
Growth and CORE U.S.
Income Equity CORE Large Cap CORE Large Cap
Fund Fund Growth Fund Value Fund(a)
<S> <C> <C> <C> <C>
Investment income(b):
Dividends $ 325,084 $ 221,683 $ 107,786 $ 42,905
Interest 129,131 84,721 25,129 2,536
-----------------------------------------------------------------------------------
Total income 454,215 306,404 132,915 45,441
-----------------------------------------------------------------------------------
Expenses:
Management fees 145,858 142,551 98,207 17,243
Transfer agent fees 25,539 22,018 23,825 25,665
Custodian fees 61,045 58,263 52,693 31,915
Registration fees 702 1,512 1,567 884
Professional fees 52,813 50,087 50,086 39,898
Trustee fees 9,268 9,268 9,269 2,044
Amortization of deferred
organization expenses 4,107 4,107 4,108 --
Other 21,504 20,877 20,331 20,600
-----------------------------------------------------------------------------------
Total expenses 320,836 308,683 260,086 138,249
-----------------------------------------------------------------------------------
Less -- expenses
reimbursed and fees
waived (145,807) (145,768) (147,849) (118,542)
-----------------------------------------------------------------------------------
Net expenses 175,029 162,915 112,237 19,707
-----------------------------------------------------------------------------------
NET INVESTMENT INCOME 279,186 143,489 20,678 25,734
-----------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investment, option, futures and for-
eign currency transactions:
Net realized gain (loss)
from:
Investment transactions (751,691) 1,039,589 819,457 122,667
Options written 14,887 -- -- --
Futures transactions 164,889 351,818 (24,451) --
Foreign currency related
transactions 38 (12) -- --
Net change in unrealized
gain (loss) on:
Investments 1,270,255 4,070,207 4,339,428 131,183
Futures 80,890 104,283 36,677 --
Translation of assets
and liabilities
denominated in foreign
currencies -- -- -- --
-----------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investment, options,
futures and foreign
currency transactions: 779,268 5,565,885 5,171,111 253,850
-----------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $1,058,454 $5,709,374 $5,191,789 $ 279,584
-----------------------------------------------------------------------------------
</TABLE>
(a) Commenced operations on April 1, 1999.
(b) For 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 International Equity, International Equity and Global Income Funds,
taxes withheld on dividends and interests were $2,996, $3,196, $2,731,
$50, $18, $100, $1,139, $23,295, $24,317 and $443, respectively.
The accompanying notes are an integral part of these financial statements.
74
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
<TABLE>
<CAPTION>
Capital Mid Cap Value CORE Short Duration
CORE Small Cap Growth Fund (formerly International International Government Global Income
Equity Fund Fund Mid Cap Equity) Equity Fund(a) Equity Fund Fund(a) Fund
<S> <C> <C> <C> <C> <C> <C>
$ 65,007 $ 49,891 $ 176,561 $ 158,855 $ 196,239 $ -- $ --
12,108 9,517 78,099 13,651 34,477 464,480 329,897
------------------------------------------------------------------------------------------------------------
77,115 59,408 254,660 172,506 230,716 464,480 329,897
------------------------------------------------------------------------------------------------------------
46,304 47,162 90,695 69,908 138,806 41,965 56,181
26,754 24,073 22,834 25,660 23,348 25,619 24,243
102,232 42,059 51,296 131,397 108,151 27,219 51,334
1,510 865 706 2,831 2,352 2,831 1,569
50,087 49,304 49,304 39,898 49,782 39,898 52,162
9,268 9,268 9,268 2,044 9,268 2,044 9,268
4,108 4,107 4,107 -- 4,107 -- 4,107
19,879 19,783 19,911 20,726 21,130 20,599 20,179
------------------------------------------------------------------------------------------------------------
260,142 196,621 248,121 292,464 356,944 160,175 219,043
------------------------------------------------------------------------------------------------------------
(204,581) (140,027) (140,421) (201,868) (183,436) (106,765) (153,499)
------------------------------------------------------------------------------------------------------------
55,561 56,594 107,700 90,596 173,508 53,410 65,544
------------------------------------------------------------------------------------------------------------
21,554 2,814 146,960 81,910 57,208 411,070 264,353
------------------------------------------------------------------------------------------------------------
395,743 325,897 (347,009) 539,715 1,611,127 (110,029) (150,774)
-- -- 8,288 -- -- -- --
44,960 -- 53,358 -- 34,480 (4,354) --
-- -- (11) (34,674) (10,800) -- (1,252)
1,135,083 1,405,423 (236,347) 2,102,886 2,782,344 (179,719) (303,468)
82,049 -- -- -- 102,218 30,042 --
-- -- -- (174) (3,196) -- 133,633
------------------------------------------------------------------------------------------------------------
1,657,835 1,731,320 (521,721) 2,607,753 4,516,173 (264,060) (321,861)
------------------------------------------------------------------------------------------------------------
$1,679,389 $1,734,134 $(374,761) $2,689,663 $4,573,381 $ 147,010 $ (57,508)
------------------------------------------------------------------------------------------------------------
</TABLE>
75
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Statements of Changes in Net Assets
For the Year Ended December 31, 1999
<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 $ 279,186 $ 143,489 $ 20,678 $ 25,734
Net realized gain (loss)
on investment, options,
futures and foreign
currency related
transactions (571,877) 1,391,395 795,006 122,667
Net change in unrealized
gain (loss) on
investments, options,
futures and translation
of assets and
liabilities denominated
in foreign currencies 1,351,145 4,174,490 4,376,105 131,183
------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from operations 1,058,454 5,709,374 5,191,789 279,584
------------------------------------------------------------------------------------
Distributions to share-
holders:
From net investment
income (279,186) (143,489) (20,678) (25,734)
In excess of net
investment income (3,919) (6,622) (3,612) (4,850)
From net realized gain
on investment, options,
futures and foreign
currency transactions -- (524,244) -- (58,422)
------------------------------------------------------------------------------------
Total distributions to
shareholders (283,105) (674,355) (24,290) (89,006)
------------------------------------------------------------------------------------
From share transactions:
Proceeds from sales of
shares 16,777,010 39,589,353 11,571,355 3,293,945
Reinvestment of
dividends and
distributions 283,104 674,354 24,167 85,892
Cost of shares
repurchased (5,660,860) (3,049,107) (628,485) (114,879)
------------------------------------------------------------------------------------
Net increase in net
assets resulting from
share transactions 11,399,254 37,214,600 10,967,037 3,264,958
------------------------------------------------------------------------------------
TOTAL INCREASE 12,174,603 42,249,619 16,134,536 3,455,536
------------------------------------------------------------------------------------
Net assets:
Beginning of period 13,814,429 9,808,861 8,214,389 --
------------------------------------------------------------------------------------
End of period $25,989,032 $52,058,480 $24,348,925 $3,455,536
------------------------------------------------------------------------------------
Accumulated
undistributed
(distributions in excess
of) net investment
income $ 226 $ -- $ 496 $ --
------------------------------------------------------------------------------------
Summary of share trans-
actions:
Shares sold 1,534,847 3,061,033 883,252 327,984
Shares issued on
reinvestment of
dividends and
distributions 26,583 50,325 1,619 8,299
Shares repurchased (496,142) (246,857) (47,422) (10,728)
------------------------------------------------------------------------------------
Total 1,065,288 2,864,501 837,449 325,555
------------------------------------------------------------------------------------
</TABLE>
(a) Commenced operations on April 1, 1999.
The accompanying notes are an integral part of these financial statements.
76
<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>
$ 21,554 $ 2,814 $ 146,960 $ 81,910 $ 57,208 $ 411,070 $ 264,353
440,703 325,897 (285,374) 505,041 1,634,807 (114,383) (152,026)
1,217,132 1,405,423 (236,347) 2,102,712 2,881,366 (149,677) (169,835)
-----------------------------------------------------------------------------------------------------------
1,679,389 1,734,134 (374,761) 2,689,663 4,573,381 147,010 (57,508)
-----------------------------------------------------------------------------------------------------------
(21,554) (2,814) (146,960) (64,631) (57,208) (411,070) (222,866)
(4,427) (5,555) (5,250) -- (187,931) (5,554) --
-- (239,526) -- (335,571) (1,219,801) -- (35,447)
-----------------------------------------------------------------------------------------------------------
(25,981) (247,895) (152,210) (400,202) (1,464,940) (416,624) (258,313)
-----------------------------------------------------------------------------------------------------------
7,372,445 4,867,045 27,018,313 10,269,336 10,914,867 10,525,682 1,586,871
23,889 249,170 151,832 394,437 1,464,935 413,063 254,444
(402,880) (615,262) (10,364,745) (64,521) (6,534,776) (363,802) (342,856)
-----------------------------------------------------------------------------------------------------------
6,993,454 4,500,953 16,805,400 10,599,252 5,845,026 10,574,943 1,498,459
-----------------------------------------------------------------------------------------------------------
8,646,862 5,987,192 16,278,429 12,888,713 8,953,467 10,305,329 1,182,638
-----------------------------------------------------------------------------------------------------------
4,840,892 4,463,054 5,603,896 -- 11,205,722 -- 5,741,286
-----------------------------------------------------------------------------------------------------------
$13,487,754 $10,450,246 $21,882,325 $12,888,713 $20,159,189 $10,305,329 $6,923,924
-----------------------------------------------------------------------------------------------------------
$ -- $ -- $ -- $ (4,061) $ (115,894) $ -- $ (21,641)
-----------------------------------------------------------------------------------------------------------
775,824 383,533 3,033,801 1,024,244 865,376 1,052,325 155,968
2,661 18,609 18,699 33,915 106,930 42,453 25,884
(41,816) (50,626) (1,107,272) (5,730) (520,324) (36,062) (34,083)
-----------------------------------------------------------------------------------------------------------
736,669 351,516 1,945,228 1,052,429 451,982 1,058,716 147,769
-----------------------------------------------------------------------------------------------------------
</TABLE>
77
<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.
78
<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>
79
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Financial Highlights
Selected Data for a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Income from
investment operations(a) Distributions to shareholders
--------------------------- ------------------------------
Net asset Net realized In excess From
value at Net and From net of net net
beginning investment unrealized investment investment realized
of period income gain (loss) income income gain
<S> <C> <C> <C> <C> <C> <C>
Growth and Income Fund
For the year ended
December 31, 1999 $10.45 $ 0.12 $ 0.44 $(0.12) $ -- $ --
For the period ended
December 31, 1998(f) 10.00 0.09 0.45 (0.09) -- --
------------------------------------------------------------------------------------------------
CORE U.S. Equity Fund
For the year ended
December 31, 1999 11.42 0.05 2.72 (0.05) -- (0.16)
For the period ended
December 31, 1998(f) 10.00 0.05 1.42 (0.05) -- --
------------------------------------------------------------------------------------------------
CORE Large Cap Growth
Fund
For the year ended
December 31, 1999 11.68 0.02 4.12 (0.02) -- --
For the period ended
December 31, 1998(f) 10.00 0.02 1.68 (0.02) -- --
------------------------------------------------------------------------------------------------
CORE Large Cap Value
Fund
For the period ended
December 31, 1999(e) 10.00 0.09 0.81 (0.09) (0.01) (0.19)
------------------------------------------------------------------------------------------------
CORE Small Cap Equity
Fund
For the year ended
December 31, 1999 9.04 0.02 1.56 (0.02) -- --
For the period ended
December 31, 1998(f) 10.00 0.02 (0.95) (0.02) (0.01) --
------------------------------------------------------------------------------------------------
Capital Growth Fund
For the year ended
December 31, 1999 11.31 0.01 3.04 (0.01) -- (0.34)
For the period ended
December 31, 1998(f) 10.00 0.03 1.31 (0.03) -- --
------------------------------------------------------------------------------------------------
Mid Cap Value Fund
For the year ended
December 31, 1999 8.57 0.07 (0.15) (0.07) -- --
For the period ended
December 31, 1998(f) 10.00 0.07 (1.43) (0.07) -- --
------------------------------------------------------------------------------------------------
CORE International
Equity Fund
For the period ended
December 31, 1999(e) 10.00 0.08 2.56 (0.06) -- (0.33)
------------------------------------------------------------------------------------------------
International Equity
Fund
For the year ended
December 31, 1999 11.91 0.07 3.66 (0.07) (0.13) (0.97)
For the period ended
December 31, 1998(f) 10.00 0.02 1.98 -- -- (0.09)
------------------------------------------------------------------------------------------------
Short Duration
Government Fund
For the period ended
December 31, 1999(e) 10.00 0.41 (0.27) (0.41) -- --
------------------------------------------------------------------------------------------------
Global Income Fund
For the year ended
December 31, 1999 10.32 0.39 (0.50) (0.33) -- (0.05)
For the period ended
December 31, 1998(f) 10.00 0.45 0.38 (0.40) -- (0.11)
------------------------------------------------------------------------------------------------
</TABLE>
(a) Includes the balancing effect of calculating per share amounts.
(b) 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.
(c) Annualized.
(d) Not annualized.
(e) CORE Large Cap Value, CORE International Equity and Short Duration
Government commenced operations on April 1, 1999.
(f) 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 commenced operations on February 13, 1998;
Capital Growth and Mid Cap Value commenced operations on April 30, 1998
and May 1, 1998, respectively.
The accompanying notes are an integral part of these financial statements.
80
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
<TABLE>
<CAPTION>
Ratios assuming no
voluntary waiver of fees
or expense limitations
------------------------
Net
Net assets Ratio of Ratio of
increase at end Ratio of net Ratio of net
(decrease) Net asset of net investment net investment
in net value, period expenses income expenses income (loss) Portfolio
asset end of Total (in to average to average to average to average turnover
value period return(b) 000s) net assets net assets net assets net assets rate
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$0.44 $10.89 5.41% $25,989 0.90% 1.44% 1.65% 0.69% 121%
0.45 10.45 5.47(d) 13,814 0.90(c) 1.85(c) 2.69(c) 0.06(c) 88(d)
-----------------------------------------------------------------------------------------------------
2.56 13.98 24.30 52,058 0.80 0.70 1.52 (0.02) 70
1.42 11.42 14.73(d) 9,809 0.80(c) 0.70(c) 2.83(c) (1.33)(c) 75(d)
-----------------------------------------------------------------------------------------------------
4.12 15.80 35.42 24,349 0.80 0.15 1.85 (0.90) 70
1.68 11.68 16.99(d) 8,214 0.80(c) 0.20(c) 2.87(c) (1.87)(c) 69(d)
-----------------------------------------------------------------------------------------------------
0.61 10.61 8.99(d) 3,456 0.80(c) 1.04(c) 5.61(c) (3.77)(c) 48(d)
-----------------------------------------------------------------------------------------------------
1.56 10.60 17.54 13,488 0.90 0.35 4.22 (2.97) 101
(0.96) 9.04 (9.30)(d) 4,841 0.90(c) 0.30(c) 3.92(c) (2.72)(c) 74(d)
-----------------------------------------------------------------------------------------------------
2.70 14.01 27.13 10,450 0.90 0.04 3.13 (2.19) 34
1.31 11.31 13.40(d) 4,463 0.90(c) 0.42(c) 4.92(c) (3.60)(c) 20(d)
-----------------------------------------------------------------------------------------------------
(0.15) 8.42 (0.95) 21,882 0.95 1.30 2.19 0.06 103
(1.43) 8.57 (13.56)(d) 5,604 0.95(c) 1.74(c) 4.79(c) (2.10)(c) 38(d)
-----------------------------------------------------------------------------------------------------
2.25 12.25 26.64(d) 12,889 1.10(c) 1.00(c) 3.55(c) (1.45)(c) 97(d)
-----------------------------------------------------------------------------------------------------
2.56 14.47 31.85 20,159 1.25 0.41 2.57 (0.91) 87
1.91 11.91 20.07(d) 11,206 1.25(c) 0.23(c) 2.97(c) (1.49)(c) 76(d)
-----------------------------------------------------------------------------------------------------
(0.27) 9.73 1.41(d) 10,305 0.70(c) 5.39(c) 2.10(c) 3.99(c) 152(d)
-----------------------------------------------------------------------------------------------------
(0.49) 9.83 (1.01) 6,924 1.05 4.23 3.51 1.77 200
0.32 10.32 8.29(d) 5,741 1.05(c) 4.59(c) 3.30(c) 2.34(c) 203(d)
-----------------------------------------------------------------------------------------------------
</TABLE>
Variable Insurance Trust--Tax Information (unaudited)
For the year ended December 31, 1999, 100.0%, 26.94%, 100.0%, 32.60%,
100.0%, 38.44% and 100.0% of the dividends paid from net investment income by
the Growth and Income, CORE U.S. Equity, CORE Large Cap Growth, CORE Large Cap
Value, CORE Small Cap Equity, Capital Growth and Mid Cap Value Funds respec-
tively, qualify for the dividends received deduction available to corpora-
tions.
Pursuant to Section 852 of the Internal Revenue Code, CORE U.S. Equity, Cap-
ital Growth and International Equity Funds designate $387,214, $157,845 and
$592,901 as a capital gain dividend for its year ended December 31, 1999.
81
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Notes to Financial Statements
December 31, 1999
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. Debt securities
are valued at prices supplied by independent pricing services, broker/dealer-
supplied valuations or matrix pricing systems. Unlisted equity and debt secu-
rities 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 accurate quota-
tions 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
portfolio securities are calculated using the identified-cost basis. Dividend
income is recorded on the ex-dividend date. Dividends for which the fund has
the choice to receive either cash or stock are recognized as investment in-
come 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, Short Duration Government and Global Income do not amor-
tize market premiums. In addition, it is the Funds' policy to accrue for es-
timated capital gains taxes on foreign securities held by the Funds, which
are subject to such taxes.
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,
82
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
income and expenses are converted into U.S. dollars based upon currency ex-
change 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 and sale of investments (for fixed income
only); (ii) gains and losses between trade date and settlement date on in-
vestment securities transactions and forward exchange contracts; and (iii)
gains and losses from the difference between amounts of interest and dividend
recorded and the amounts actually received.
D. 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.
E. 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, 1999, 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 $599,984 2006-2007
----------------------------------------------------
CORE Small Cap Equity Fund 198,691 2006
----------------------------------------------------
Mid Cap Value Fund 149,174 2006-2007
----------------------------------------------------
Short Duration Government Fund 82,910 2007
----------------------------------------------------
Global Income Fund 136,949 2007
----------------------------------------------------
</TABLE>
83
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Notes to Financial Statements (continued)
December 31, 1999
At December 31, 1999 the Funds' aggregate unrealized gains and losses based
on cost for federal income tax purposes was as follows:
<TABLE>
<CAPTION>
Gross Gross Net
Unrealized Unrealized Unrealized
Fund Tax Cost Gain Loss Gain (Loss)
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Growth and Income $24,559,773 $2,502,777 $1,241,954 $1,260,823
-------------------------------------------------------------------------
CORE U.S. Equity 45,299,571 6,847,470 1,505,059 5,342,411
-------------------------------------------------------------------------
CORE Large Cap Growth 18,099,962 6,641,236 624,291 6,016,945
-------------------------------------------------------------------------
CORE Large Cap Value 3,359,464 366,552 235,385 131,167
-------------------------------------------------------------------------
CORE Small Cap Equity 11,647,743 2,075,941 689,581 1,386,360
-------------------------------------------------------------------------
Capital Growth 8,414,741 2,272,926 341,278 1,931,648
-------------------------------------------------------------------------
Mid Cap Value 22,495,722 978,495 1,536,660 (558,165)
-------------------------------------------------------------------------
CORE International Equity 10,793,723 2,580,234 487,969 2,092,265
-------------------------------------------------------------------------
International Equity 15,756,974 4,501,908 388,313 4,113,595
-------------------------------------------------------------------------
Short Duration Government 10,373,872 1,485 182,635 (181,150)
-------------------------------------------------------------------------
Global Income 6,758,186 152,785 294,181 (141,396)
-------------------------------------------------------------------------
</TABLE>
F. Deferred Organization Expenses -- Organization-related costs are being am-
ortized on a straight-line basis over a period of five years (with the excep-
tion of those funds which commenced operations in 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.
G. 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 straight-line or pro rata basis depending upon the nature of the
expense.
H. Segregation Transactions -- As set forth in the prospectus, certain Funds
may enter into derivative transactions to seek to increase total return. For-
ward foreign currency exchange contracts, futures contracts, written options,
mortgage dollar rolls, when issued securities and forward commitments are ex-
amples of such transactions. As a result of entering into those transactions,
the Funds are required to segregate liquid assets on the accounting records
equal to or greater than the market value of the corresponding transactions.
3. AGREEMENTS
Pursuant to the Investment Management Agreement (the "Agreement"), Goldman
Sachs Asset Management ("GSAM"), a separate unit of the Investment Management
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 Equity and Short Duration Government Funds. Goldman Sachs Asset
Management International ("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
84
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
and administering the Funds' business affairs, including providing facili-
ties, the adviser is entitled to a fee, computed daily and payable monthly at
an annual rate of the average daily net assets as follows:
<TABLE>
<CAPTION>
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>
The advisers have voluntarily agreed to limit certain "Other Expenses" of
the Funds (excluding management fees, taxes, interest, brokerage fees, liti-
gation 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. Equity, CORE Large Cap Growth, CORE Large Cap Value, CORE Small Cap
Equity, Capital Growth, Mid Cap Value, CORE International Equity, Interna-
tional Equity, Short Duration Government and Global Income, respectively.
For the year ended December 31, 1999, the adviser has voluntarily agreed to
reimburse other expenses and the Funds have entered into expense offset ar-
rangements with the custodian resulting in a reduction in expenses as follows
(amounts in thousands):
<TABLE>
<CAPTION>
Transfer
Custody Fee Agent Fee
Fund Reimbursement Reduction Waiver Total
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Growth and Income $129 $ 2 $15 $146
---------------------------------------------------------------------
CORE U.S. Equity 129 2 15 146
---------------------------------------------------------------------
CORE Large Cap Growth 131 2 15 148
---------------------------------------------------------------------
CORE Large Cap Value 108 -- 11 119
---------------------------------------------------------------------
CORE Small Cap Equity 188 2 15 205
---------------------------------------------------------------------
Capital Growth 123 2 15 140
---------------------------------------------------------------------
Mid Cap Value 123 2 15 140
---------------------------------------------------------------------
CORE International Equity 191 -- 11 202
---------------------------------------------------------------------
International Equity 166 2 15 183
---------------------------------------------------------------------
Short Duration Government 96 -- 11 107
---------------------------------------------------------------------
Global Income 136 2 15 153
---------------------------------------------------------------------
</TABLE>
85
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Notes to Financial Statements (continued)
December 31, 1999
Goldman Sachs also serves as the transfer agent of the Funds and has volun-
tarily waived its fees. Goldman Sachs may discontinue or modify this waiver
in the future at its discretion. Goldman Sachs serves as the distributor of
each Fund's shares at no cost to the Funds.
At December 31, 1999, the amounts owed to affiliates were as follows (in
thousands):
<TABLE>
<CAPTION>
Transfer
Management Agent
Fund Fees Fees Total
-----------------------------------------------------
<S> <C> <C> <C>
Growth and Income $16 $ 8 $24
-----------------------------------------------------
CORE U.S. Equity 26 8 34
-----------------------------------------------------
CORE Large Cap Growth 13 8 21
-----------------------------------------------------
CORE Large Cap Value 2 10 12
-----------------------------------------------------
CORE Small Cap Equity 7 8 15
-----------------------------------------------------
Capital Growth 6 8 14
-----------------------------------------------------
Mid Cap Value 13 8 21
-----------------------------------------------------
CORE International Equity 9 10 19
-----------------------------------------------------
International Equity 16 8 24
-----------------------------------------------------
Short Duration Government 5 10 15
-----------------------------------------------------
Global Income 5 8 13
-----------------------------------------------------
</TABLE>
As of December 31, 1999, Goldman Sachs was the beneficial owner of 14%,
33%, 92%, 39%, 41%, 95%, 61%, 94% and 77% of the outstanding shares of the
CORE U.S. Equity, CORE Large Cap Growth, CORE Large Cap Value, CORE Small Cap
Equity, Capital Growth, CORE International Equity, International Equity,
Short Duration Government and Global Income, respectively.
4. PORTFOLIO SECURITY TRANSACTIONS
Purchases and proceeds of sales or maturities of long-term securities for the
year ended December 31, 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 $ -- $29,443,106 $ -- $20,524,300
--------------------------------------------------------------------------------------
CORE U.S. Eq-
uity -- 43,428,985 -- 13,850,359
--------------------------------------------------------------------------------------
CORE Large
Cap Growth -- 19,108,541 -- 9,519,263
--------------------------------------------------------------------------------------
CORE Large
Cap Value -- 4,836,395 -- 1,599,615
--------------------------------------------------------------------------------------
CORE Small
Cap Equity -- 11,119,301 -- 6,251,391
--------------------------------------------------------------------------------------
Capital
Growth -- 6,432,230 -- 2,096,962
--------------------------------------------------------------------------------------
Mid Cap Value -- 27,631,952 -- 10,392,146
--------------------------------------------------------------------------------------
CORE Interna-
tional Equity -- 20,947,358 -- 10,704,104
--------------------------------------------------------------------------------------
International
Equity -- 13,958,020 -- 11,507,397
--------------------------------------------------------------------------------------
Short Dura-
tion Govern-
ment 22,793,313 3,042,138 15,035,246 507,143
--------------------------------------------------------------------------------------
Global Income 2,865,744 10,246,731 3,380,745 8,160,603
--------------------------------------------------------------------------------------
</TABLE>
86
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
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 equiv-
alent liability. The amount of the liability is subsequently marked-to-market
to reflect the current market value of the option written. When a written op-
tion 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 liability
related to such option is extinguished. When a written call option is exer-
cised, the Funds realize a gain or loss from the sale of the underlying secu-
rity, and the proceeds of the sale are increased by the premium originally
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 pur-
chase 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.
For the year ended December 31, 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 year -- --
Options written 69 $ 14,887
Options expired (51) (12,167)
Options assigned (18) (2,720)
--------------------------------------------------------------
BALANCE OUTSTANDING, END OF YEAR -- $ --
--------------------------------------------------------------
</TABLE>
For the year ended December 31, 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 year -- --
Options written 39 $10,747
Options expired (7) (2,127)
Options assigned (7) (3,742)
Options terminated in closing purchase transactions (25) (4,878)
-------------------------------------------------------------------------
BALANCE OUTSTANDING, END OF YEAR -- $ --
-------------------------------------------------------------------------
</TABLE>
87
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Notes to Financial Statements (continued)
December 31, 1999
Forward Foreign Currency Exchange Contracts -- CORE International Equity, In-
ternational 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 future
date as a hedge or cross-hedge against either specific transactions or port-
folio positions. CORE International Equity, International Equity and Global
Income may also purchase and sell forward contracts to seek to increase total
return. All commitments are "marked-to-market" daily at the applicable trans-
lation rates. The Funds record realized gains or losses at the time the for-
ward contract is offset by entry into a closing transaction or extinguished
by delivery of the currency. Risks may arise upon entering into these con-
tracts 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.
At December 31, 1999, International Equity had outstanding forward foreign
currency exchange contracts as follows:
<TABLE>
<CAPTION>
Value on
Open Forward Foreign Currency Settlement Current Unrealized Unrealized
Purchase Contracts Date Value Gain Loss
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Euro Currency expiring 1/26/2000 $ 108,400 $ 104,706 $ -- $ 3,694
------------------------------------------------------------------------------
TOTAL OPEN FORWARD FOREIGN
CURRENCY PURCHASE
CONTRACTS $ 108,400 $ 104,706 $ -- $ 3,694
------------------------------------------------------------------------------
------------------------------------------------------------------------------
<CAPTION>
Value on
Open Forward Foreign Currency Settlement Current Unrealized Unrealized
Sale Contracts Date Value Gain Loss
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Japanese Yen expiring 2/17/2000 $1,862,703 $1,869,008 $1,100 $ 7,405
Euro Currency expiring 3/15/2000 11,386 11,451 -- 65
Hong Kong Dollars expiring
6/8/2000 544,469 544,425 44 --
------------------------------------------------------------------------------
TOTAL OPEN FORWARD FOREIGN
CURRENCY SALE
CONTRACTS $2,418,558 $2,424,884 $1,144 $ 7,470
------------------------------------------------------------------------------
------------------------------------------------------------------------------
<CAPTION>
Closed but Unsettled Purchase Sale Realized Realized
Forward Currency Contracts Value Value Gain Loss
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Euro Currency expiring 1/26/2000 $ 63,153 $ 64,062 $ 909 $ --
Euro Currency expiring 1/26/2000 312,600 311,756 -- 844
Euro Currency expiring 1/26/2000 421,000 422,182 1,182 --
Euro Currency expiring 3/15/2000 881,000 869,614 -- 11,386
Japanese Yen expiring 2/17/2000 862,000 851,297 -- 10,703
------------------------------------------------------------------------------
TOTAL CLOSED BUT UNSETTLED
FORWARD FOREIGN CURRENCY
CONTRACTS $2,539,753 $2,518,911 $2,091 $22,933
------------------------------------------------------------------------------
</TABLE>
88
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
At December 31, 1999, Global Income 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>
Australian Dollars expiring
3/23/2000 $ 172,000 $ 177,649 $ 5,649 $ --
Canadian Dollars expiring
2/29/2000 117,724 120,164 2,440 --
Swedish Krona expiring 3/16/2000 38,482 38,042 -- 440
------------------------------------------------------------------------------
TOTAL OPEN FOREIGN CURRENCY
PURCHASE CONTRACTS $ 328,206 $ 335,855 $ 8,089 $ 440
------------------------------------------------------------------------------
------------------------------------------------------------------------------
<CAPTION>
Value on
Open Foreign Currency Settlement Current Unrealized Unrealized
Sale Contracts Date Value Gain Loss
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Danish Krones expiring 1/21/2000 $ 97,727 $ 91,738 $ 5,989 $ --
Euros expiring 1/26/2000 2,128,427 1,978,375 150,052 --
Euros expiring 3/6/2000 267,000 267,469 -- 469
British Pounds expiring 5/2/2000 622,580 627,802 -- 5,222
Japanese Yen expiring 2/17/2000 1,553,373 1,577,774 1,554 25,955
New Zealand Dollar expiring
10/18/2000 106,599 108,252 -- 1,653
------------------------------------------------------------------------------
TOTAL OPEN FOREIGN CURRENCY SALE
CONTRACTS $4,775,706 $4,651,410 $157,595 $33,299
------------------------------------------------------------------------------
------------------------------------------------------------------------------
<CAPTION>
Closed but Unsettled Purchase Sale Realized Realized
Forward Currency Contracts Value Value Gain Loss
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Euros expiring 1/26/2000 $ 993,017 $1,012,666 $ 19,649 $ --
Euros expiring 2/17/2000 170,000 168,149 -- 1,851
Euros expiring 3/15/2000 170,000 167,803 -- 2,197
------------------------------------------------------------------------------
TOTAL CLOSED BUT UNSETTLED
FORWARD CURRENCY CONTRACTS $1,333,017 $1,348,618 $ 19,649 $ 4,048
------------------------------------------------------------------------------
</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 December 31,
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 $3,235 and
$34,097 and $185,333 and $37,787, respectively, in the accompanying State-
ments of Assets and Liabilities.
Futures Contracts -- The Funds may enter into futures transactions to hedge
against changes in interest rates, securities prices, currency exchange rates
or to seek to increase 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 associated futures exchange. Subsequent payments
for 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 which is reported
in the Statements of Operations.
89
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Notes to Financial Statements (continued)
December 31, 1999
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'
strategies and potentially result in a loss.
At December 31, 1999 the following Futures contracts were open as follows:
<TABLE>
<CAPTION>
Number of
Contracts Settlement Market Unrealized
Fund Type Long (Short) Month Value Gain (Loss)
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Growth and
Income S&P 500 Index 6 March 2000 $ 2,226,300 $ 80,890
-------------------------------------------------------------------------------------------
CORE U.S.
Equity S&P 500 Index 16 March 2000 $ 5,936,800 $104,283
-------------------------------------------------------------------------------------------
CORE Large
Cap Growth S&P 500 Index 3 March 2000 $ 1,113,150 $ 36,677
-------------------------------------------------------------------------------------------
CORE Small
Cap Equity Russell 2000 Index 7 March 2000 $ 1,784,825 $ 82,049
-------------------------------------------------------------------------------------------
International
Equity TOPIX Index 8 March 2000 $ 1,340,511 $ 58,138
DAX 30 Index 2 March 2000 353,932 37,587
FTSE 100 Index 2 March 2000 225,399 6,493
-------------------------------------------------------------------------------------------
$ 1,919,842 $102,218
-------------------------------------------------------------------------------------------
Short
Duration
Government 2 Year U.S. Treasury Note 24 March 2000 $ 4,766,625 $(27,896)
5 Year U.S. Treasury Note (7) March 2000 (686,109) 9,489
10 Year U.S. Treasury Note (5) March 2000 (479,297) 10,360
20 Year U.S. Treasury Bond (11) March 2000 (1,000,312) 38,089
-------------------------------------------------------------------------------------------
$ 2,600,907 $ 30,042
-------------------------------------------------------------------------------------------
</TABLE>
For the period ended December 31, 1999, the Trust paid Goldman Sachs ap-
proximately $11,000 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 December 31, 1999, Growth and Income, CORE U.S. Equity, CORE Large Cap
Growth, CORE Small Cap, Mid Cap Value and Short Duration Government had undi-
vided interests in the repurchase agreements in the following joint account
which equaled $3,400,000, $6,100,000, $1,200,000, $1,800,000, $1,300,000 and
$200,000, respectively, in principal amount. At December 31, 1999, the fol-
lowing repurchase agreements held in this joint account were fully collater-
alized by Federal Agency obligations.
90
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Repurchase Agreements Amount Rate Date Cost
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Banc of America Securities $700,000,000 3.10% 01/03/2000 $ 700,000,000
----------------------------------------------------------------------------
Chase Manhattan Bank 340,000,000 3.15 01/03/2000 340,000,000
----------------------------------------------------------------------------
Morgan Stanley & Co. 501,500,000 3.25 01/03/2000 501,500,000
----------------------------------------------------------------------------
TOTAL JOINT REPURCHASE
AGREEMENT ACCOUNT II $1,541,500,000
----------------------------------------------------------------------------
</TABLE>
7. LINE OF CREDIT FACILITY
The Funds participated in a $250,000,000 uncommitted, unsecured revolving
line of credit facility which was terminated on April 30, 1999. Under the
most restrictive arrangement, each Fund must have owned securities having a
market value in excess of 300% of the total bank borrowings. Effective April
30, 1999, the Funds now participate in a $250,000,000 uncommitted and a
$250,000,000 committed, unsecured revolving line of credit facility. Under
the most restrictive arrangement, each Fund must own securities having a mar-
ket 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 year ended December 31, 1999, the
Funds did not have any borrowings under any of these facilities.
8. CERTAIN RECLASSIFICATIONS
In accordance with Statement of Position 93-2, Growth and Income has reclas-
sified $4,107 and $38 from paid in capital and accumulated net realized loss,
respectively, to accumulated undistributed net investment income. CORE U.S.
Equity has reclassified $4,107 and $2,515 from paid in capital and accumu-
lated net realized gain, respectively, to accumulated undistributed net in-
vestment income. CORE Large Cap Growth has reclassified $4,108 from paid in
capital to accumulated undistributed net investment income. CORE Large Cap
Value has reclassified $4,850 from accumulated net realized gain to accumu-
lated undistributed net investment income. CORE Small Cap Equity has reclas-
sified $4,427 from paid in capital to accumulated undistributed net
investment income. Capital Growth has reclassified $4,107 and $1,448 from
paid in capital and accumulated net realized gain, respectively, to accumu-
lated undistributed net investment income. Mid Cap Value has reclassified
$5,250 and $11 to accumulated undistributed net investment income and accumu-
lated net realized loss, respectively, from paid in capital. CORE Interna-
tional Equity has reclassified $21,340 from accumulated undistributed net
investment income to accumulated net realized gain. International Equity has
reclassified $4,107 and $80,620 from paid in capital and accumulated net re-
alized gain, respectively, to accumulated undistributed net investment in-
come. Short Duration Government reclassified $5,554 from paid in capital to
accumulated undistributed net investment income. Global Income has reclassi-
fied $4,040 and $56,576 from paid in capital and accumulated undistributed
net investment income, respectively to accumulated net realized loss. These
reclassifications have no impact on the net asset values of each Fund and are
designed to present each Fund's capital accounts on a tax basis.
91
<PAGE>
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Notes to Financial Statements (continued)
December 31, 1999
9. CHANGE IN INDEPENDENT AUDITORS
On October 26, 1999 the Board of Trustees of the Funds, upon the recommenda-
tion of the Board's audit committee, determined not to retain Arthur Andersen
LLP and approved a change of the Funds' independent auditors to Ernst & Young
LLP. For the fiscal years ended December 31, 1999 and December 31, 1998, Ar-
thur Andersen LLP's audit reports contained no adverse opinion or disclaimer
of opinion; nor were their reports qualified or modified as to uncertainty,
audit scope, or accounting principles. Further, there were no disagreements
between the Funds and Arthur Andersen LLP on accounting principles or prac-
tices, financial statement disclosure or audit scope or procedure, which if
not resolved to the satisfaction of Arthur Andersen LLP would have caused
them to make reference to the disagreement in their report.
10. OTHER MATTERS
On February 3, 2000, the Board of Trustees of the CORE International Equity
and Short Duration Government Funds approved liquidation and termination of
such Funds, subject to all annuity contract owners exchanging or being for-
mally substituted out of such Funds.
92
<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 Nancy L. Mucker, Vice
Mary P. McPherson President
Alan A. Shuch John M. Perlowski, Treasurer
Jackson W. Smart, Adrien Deberghes, Assistant
Jr. Treasurer
William H. Philip V. Giuca, Jr.,
Springer Assistant Treasurer
Richard P. Strubel 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
