GOLDMAN SACHS MONEY MARKET TRUST, 497, 1995-06-20

GOLDMAN SACHS MONEY MARKET TRUST
497, 1995-06-20

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<PAGE>

GOLDMAN SACHS MONEY MARKET TRUST
Financial Square Treasury Obligations Fund
Financial Square Government Fund

FST Shares
FST Administration Shares
FST Service Shares

---------------------------------------

Supplement dated June 21, 1995 to
Prospectuses dated March 15, 1995

The following relates to the Financial Square Government Fund only:

Shares of the Government Fund are intended to qualify as eligible
investments for Federally chartered credit unions pursuant to Sections 107(7),
107(8) and 107(15) of the Federal Credit Union Act, Part 703 of the National
Credit Union Administration ("NCUA") Rules and Regulations and NCUA Letter
Number 155. The Fund intends to review changes in the applicable laws, rules and
regulations governing eligible investments for federally chartered credit
unions, and to take such action as may be necessary so that the investments of
the Fund qualify as eligible investments under the Federal Credit Union Act and
the regulations thereunder. Shares of the Government Fund, however, may or may
not qualify as eligible investments for particular state chartered credit
unions. The Government Fund encourages each state chartered credit union to
consult qualified legal counsel concerning whether the Government Fund is a
permissible investment under the law applicable to it.

The section under "Repurchase Agreements" in the accompanying Prospectus
will be revised as follows:

The Treasury Obligations Fund may only enter into repurchase agreements with
primary dealers in U.S. Government securities. Each Fund (other than the
Treasury Obligations Fund) may enter into repurchase agreements with selected
broker-dealers, banks or other financial institutions.
<PAGE>

GOLDMAN SACHS MONEY MARKET TRUST
FINANCIAL SQUARE FUNDS
FST SHARES
4900 Sears Tower
Chicago, Illinois 60606

Goldman Sachs Money Market Trust (the "Trust") is a no-load, open-end, man-
agement investment company (a "mutual fund") which includes the Financial
Square Funds (the "Funds"). This Prospectus relates only to the offering of
FST units of beneficial interest ("FST Shares") of the Funds. Goldman Sachs
Asset Management, a separate operating division of Goldman, Sachs & Co.,
serves as each Fund's investment adviser and administrator. Goldman, Sachs &
Co. serves as each Fund's distributor and transfer agent.

The following Funds seek to maximize current income to the extent consistent
with the preservation of capital and the maintenance of liquidity by investing
exclusively in high quality money market instruments. The Funds may invest in
diversified portfolios of the following types of instruments:

Financial Square Prime Obligations Fund. Securities of the U.S. Government,
its agencies, authorities and instrumentalities, obligations of U.S. banks,
commercial paper and other short-term obligations of U.S. companies, states,
municipalities and other entities, and repurchase agreements.

Financial Square Money Market Fund. Securities of the U.S. Government, its
agencies, authorities and instrumentalities, U.S. dollar denominated obliga-
tions of U.S. and foreign banks, U.S. dollar denominated commercial paper and
other short-term obligations of U.S. and foreign companies, foreign govern-
ments, states, municipalities and other entities, and repurchase agreements.

Financial Square Treasury Obligations Fund. Securities issued or guaranteed
by the U.S. Treasury and repurchase agreements relating to such securities.

Financial Square Government Fund. Securities of the U.S. Government, its
agencies, authorities, and instrumentalities, and repurchase agreements relat-
ing to such securities.

Financial Square Tax-Free Money Market Fund. Securities issued by or on be-
half of states, territories and possessions of the United States and their po-
litical subdivisions, agencies, authorities and instrumentalities, and the
District of Columbia, the interest from which is, in the opinion of bond coun-
sel, if any, excluded from gross income for federal income tax purposes and
not an item of tax preference under the federal alternative minimum tax.

Financial Square Municipal Money Market Fund. Securities issued by or on be-
half of states, territories and possessions of the United States and their po-
litical subdivisions, agencies, authorities and instrumentalities, and the
District of Columbia, the interest from which is, in the opinion of bond coun-
sel, if any, excluded from gross income for federal income tax purposes (but
not necessarily exempt from federal alternative minimum tax or state and local
taxes).

AN INVESTMENT IN A FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOV-
ERNMENT AND THERE CAN BE NO ASSURANCE THAT A FUND WILL BE ABLE TO MAINTAIN A
STABLE NET ASSET VALUE OF $1.00 PER SHARE.

- -------------------------------------------------------------------------------

ADDITIONAL INFORMATION.... Goldman Sachs Mutual Funds--Toll Free: 800-621-2550

This Prospectus provides you with information about the Funds that you should
know before investing in FST Shares. It should be read and retained for future
reference. If you would like more detailed information, the Statement of Addi-
tional Information dated March 15, 1995, as amended or supplemented from time
to time, is available upon request without charge by calling the telephone
number listed above or by writing Goldman, Sachs & Co., 4900 Sears Tower, Chi-
cago, Illinois 60606. The Statement of Additional Information, which is incor-
porated by reference into this Prospectus, has been filed with the Securities
and Exchange Commission. Not all Funds are available in certain states. Please
call the phone number listed above to determine availability in your state.

- -------------------------------------------------------------------------------

FST SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK OR OTHER INSURED DEPOSITORY INSTITUTION, AND ARE NOT IN-
SURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD
OR ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN A FUND INVOLVES INVESTMENT
RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE AC-
CURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

The date of this Prospectus is March 15, 1995
<PAGE>

TABLE OF CONTENTS

<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Shareholder and Fund Expenses............................................. 3
Financial Highlights...................................................... 5
An Introduction to the Funds.............................................. 11
Investment Objective and Policies of Financial Square Prime Obligations
Fund..................................................................... 12
Investment Objective and Policies of Financial Square Money Market Fund... 12
Investment Objective and Policies of Financial Square Treasury Obligations
Fund..................................................................... 13
Investment Objective and Policies of Financial Square Government Fund .... 14
Investment Objective and Policies of Financial Square Tax-Free Money Mar-
ket Fund................................................................. 14
Investment Objective and Policies of Financial Square Municipal Money Mar-
ket Fund................................................................. 14
Description of Securities and Investment Techniques....................... 15
Investment Limitations.................................................... 19
Management................................................................ 20
Taxes..................................................................... 21
Net Asset Value........................................................... 23
Yield Information......................................................... 23
Organization and Shares of the Trust...................................... 24
Purchase of Shares........................................................ 26
Reports to Shareholders................................................... 27
Distributions............................................................. 27
Exchanges................................................................. 28
Redemption of Shares...................................................... 28
Appendix A................................................................ A-1
Account Information Form..................................................
</TABLE>

2
<PAGE>

SHAREHOLDER AND FUND EXPENSES (NOTE 1)
FST SHARES (NOTE 2)

<TABLE>
<CAPTION>
FINANCIAL FINANCIAL
FINANCIAL FINANCIAL FINANCIAL SQUARE SQUARE
SQUARE SQUARE SQUARE FINANCIAL TAX-FREE MUNICIPAL
PRIME MONEY TREASURY SQUARE MONEY MONEY
OBLIGATIONS MARKET OBLIGATIONS GOVERNMENT MARKET MARKET
FUND FUND FUND FUND FUND FUND
----------- --------- ----------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Charge
Imposed on Purchases.. None None None None None None
Sales Charge Imposed on
Reinvested
Distributions......... None None None None None None
Deferred Sales Load
Imposed on
Redemptions........... None None None None None None
Exchange Fee........... None None None None None None
ANNUAL OPERATING
EXPENSES
(as a percentage of av-
erage daily net assets
after adjustments)
Management Fees (after
fee adjustments)
(Note 3).............. 0.04% 0.04% 0.04% 0.04% 0.04% 0.04%
Other Expenses (after
expense limitation)
(Note 3)
Account
Administration
Fees............... 0.13% 0.13% 0.13% 0.13% 0.13% 0.13%
Other Expenses...... 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
---- ---- ----- ---- ---- ----
TOTAL OPERATING EXPENSES
(Note 3)............... 0.18% 0.18% 0.18% 0.18% 0.18% 0.18%
==== ==== ===== ==== ==== ====
</TABLE>

EXAMPLE OF EXPENSES

You would pay the following expenses on a hypothetical $1,000 investment, as-
suming a 5% annual return and redemption at the end of each time period:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
Financial Square Prime Obligations Fund..... $2 $6 $10 $23
Financial Square Money Market Fund.......... $2 $6 N/A N/A
Financial Square Treasury Obligations Fund.. $2 $6 $10 $23
Financial Square Government Fund............ $2 $6 $10 $23
Financial Square Tax-Free Money Market Fund. $2 $6 N/A N/A
Financial Square Municipal Money Market
Fund....................................... $2 $6 N/A N/A
</TABLE>
- --------
Notes:
(1) The purpose of this table is to assist investors in understanding the vari-
ous costs and expenses that an investment in the Funds will bear directly
or indirectly. Operating expenses for Financial Square Money Market Fund,
Financial Square Government Fund, Financial Square Tax-Free Money Market
Fund and Financial Square Municipal Money Market Fund are based on esti-
mates of expenses expected to be incurred during the fiscal year ended De-
cember 31, 1995. With respect to the other Funds, the costs and expenses
included in the table and hypothetical example are based on actual amounts
incurred for the

3
<PAGE>

fiscal year ended December 31, 1994. The table and hypothetical example
should not be considered a representation of past or future expenses; actual
expenses may vary depending upon a variety of factors including the actual
performance of each Fund, which may be greater or less than 5%. Annual oper-
ating expenses incurred by Financial Square Government Fund during the fis-
cal year ended December 31, 1994 (expressed as a percentage of average daily
net assets after fee adjustments and expense limitations) were as follows:
Management Fees and Other Expenses of 0.03% and 0.12%, respectively, for to-
tal operating expenses of 0.15%. See "Management."
(2) The information set forth in the foregoing table and example relates only
to FST Shares of the Funds. FST Administration Shares and FST Service
Shares are subject to different fees and expenses. See "Organization and
Shares of the Trust." FST Administration Shares are subject to an adminis-
tration fee of up to .25% of average daily net assets. FST Service Shares
are subject to a service fee of up to .50% of average daily net assets. All
other expenses related to FST Administration Shares and FST Service Shares
are the same as for FST Shares.
(3) Goldman Sachs Asset Management (the "Adviser" or "GSAM") has agreed that a
portion of its fees will not be imposed, pursuant to applicable contracts.
In addition, the Adviser has agreed to reduce or otherwise limit certain
expenses of each Fund (excluding fees payable to Service Organizations, as
defined herein, management and account administration fees, taxes, inter-
est, brokerage and litigation, indemnification and other extraordinary ex-
penses), on an annualized basis, to .01% of such Fund's average daily net
assets. Had the reduction of fees otherwise payable and expense limitations
not been reflected in the above table, the management fees payable by each
Fund would be 0.075% of average daily net assets, and the amount of other
expenses payable by Financial Square Prime Obligations Fund, Financial
Square Money Market Fund, Financial Square Treasury Obligations Fund, Fi-
nancial Square Government Fund, Financial Square Tax-Free Money Market Fund
and Financial Square Municipal Money Market Fund, would be 0.035%, 0.045%,
0.045%, 0.045%, 0.105% and 0.29%, respectively, of average daily net as-
sets. Had the reduction of fees otherwise payable and expense limitations
not been reflected in the above table, the annual operating expenses of Fi-
nancial Square Prime Obligations Fund, Financial Square Money Market Fund,
Financial Square Treasury Obligations Fund, Financial Square Government
Fund, Financial Square Tax-Free Money Market Fund and Financial Square Mu-
nicipal Money Market Fund would be 0.24%, 0.25%, 0.25%, 0.25%, 0.31% and
.495%, respectively, of average daily net assets.

4
<PAGE>

FINANCIAL HIGHLIGHTS

The following data with respect to a share of Financial Square Prime Obliga-
tions Fund, Financial Square Money Market Fund, Financial Square Treasury Obli-
gations Fund, Financial Square Government Fund and Financial Square Tax-Free
Money Market Fund outstanding during the periods indicated have been audited by
Arthur Andersen LLP, independent auditors, as indicated in their report incor-
porated by reference and attached to the Statement of Additional Information
from the annual report to shareholders for the fiscal year ended December 31,
1994 (the "Annual Report"), and should be read in conjunction with the finan-
cial statements and related notes incorporated by reference and attached to the
Statement of Additional Information.

Financial Square Municipal Money Market Fund had no operations during the
fiscal year ended December 31, 1994. Accordingly, there are no select per share
data and ratios presented for this Fund.

5
<PAGE>

Financial Square Funds
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Data for a Share Outstanding Throughout Each Period Prime Obligations
Fund

- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS
------------------------------------
RATIO OF NET
NET ASSET NET REALIZED TOTAL NET ASSET RATIO OF NET INVESTMENT
VALUE AT NET GAIN INCOME FROM DISTRIBUTIONS VALUE AT EXPENSES TO INCOME TO
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT TO END TOTAL AVERAGE NET AVERAGE NET
OF PERIOD INCOME TRANSACTIONS OPERATIONS SHAREHOLDERS OF PERIOD RETURN(a) ASSETS ASSETS
--------- ---------- ------------- ----------- ------------- --------- ------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FOR THE PERIOD ENDED DECEMBER 31,
1994-FST
shares(e)....... $1.00 $0.0401 $0.0000 $0.0401 $(0.0401) $1.00 4.38%(b) 0.18%(b) 4.38%(b)
1994-FST
Administration
shares(e)....... 1.00 0.0383 0.0000 0.0383 (0.0383) 1.00 4.12(b) 0.43(b) 4.18(b)
1994-FST Service
shares(e)....... 1.00 0.0364 0.0000 0.0364 (0.0364) 1.00 3.86(b) 0.68(b) 3.98(b)
FOR THE YEARS ENDED JANUARY 31,
1994-FST shares. 1.00 0.0311 0.0002 0.0313 (0.0313) 1.00 3.18 0.17 3.11
1994-FST
Administration
shares.......... 1.00 0.0286 0.0002 0.0288 (0.0288) 1.00 2.92 0.42 2.86
1994-FST Service
shares.......... 1.00 0.0261 0.0002 0.0263 (0.0263) 1.00 2.66 0.67 2.61
1993-FST shares. 1.00 0.0360 0.0007 0.0367 (0.0367) 1.00 3.75 0.18 3.60
1993-FST
Administration
shares(c)....... 1.00 0.0068 0.0001 0.0069 (0.0069) 1.00 3.02(b) 0.44(b) 2.96(b)
1993-FST Service
shares.......... 1.00 0.0301 0.0007 0.0308 (0.0308) 1.00 3.23 0.68 3.01
1992-FST shares. 1.00 0.0572 0.0002 0.0574 (0.0574) 1.00 5.99 0.18 5.72
1992-FST Service
shares(c)....... 1.00 0.0027 -- 0.0027 (0.0027) 1.00 4.10(b) 0.66(b) 4.10(b)
FOR THE PERIOD MARCH 8, 1990(d) THROUGH JANUARY 31,
1991-FST shares. 1.00 0.0727 -- 0.0727 (0.0727) 1.00 8.27(b) 0.18(b) 8.04(b)

RATIOS ASSUMING NO
WAIVER OF FEES AND NO
EXPENSE LIMITATIONS
-------------------------
NET RATIO OF NET
ASSETS AT RATIO OF INVESTMENT
END EXPENSES TO INCOME TO
OF PERIOD AVERAGE NET AVERAGE NET
(IN 000'S) ASSETS ASSETS
---------- ------------ ------------
FOR THE PERIOD ENDED DECEMBER 31,
1994-FST
shares(e)....... $2,774,849 0.24%(b) 4.32%(b)
1994-FST
Administration
shares(e)....... 66,113 0.49(b) 4.12(b)
1994-FST Service
shares(e)....... 41,372 0.74(b) 3.92(b)
FOR THE YEARS ENDED JANUARY 31,
1994-FST shares. 1,831,413 0.25 3.03
1994-FST
Administration
shares.......... 35,250 0.50 2.78
1994-FST Service
shares.......... 14,001 0.75 2.53
1993-FST shares. 813,126 0.25 3.53
1993-FST
Administration
shares(c)....... 1,124 0.52(b) 2.88(b)
1993-FST Service
shares.......... 336 0.75 2.94
1992-FST shares. 917,073 0.27 5.63
1992-FST Service
shares(c)....... 118 0.74(b) 4.02(b)
FOR THE PERIOD MARCH 8, 1990(d) THROUGH JANUARY 31,
1991-FST shares. 578,495 0.28(b) 7.94(b)
</TABLE>
- ----
(a) Assumes investment at the net asset value at the beginning of the period,
reinvestment of all distributions and a complete redemption of the invest-
ment at the net asset value at the end of the period.
(b) Annualized.
(c) FST Administration and FST Service share activity commenced during Novem-
ber of 1992 and January of 1992, respectively.
(d) Commencement of operations.
(e) The information presented above reflects eleven months of operations due
to a change in fiscal year end. This change was caused by the reorganiza-
tion of the funds as a series of Goldman Sachs Money Market Trust.

6
<PAGE>

Financial Square Funds
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
Selected Data for a Share Outstanding Throughout Each Period Money Market Fund

- -------------------------------------------------------------------------------

7
<PAGE>

- -------------------------------------------------------------------------------

<TABLE>
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS
------------------------------------
RATIO OF NET
NET ASSET NET REALIZED TOTAL NET ASSET RATIO OF NET INVESTMENT
VALUE AT NET GAIN (LOSS) INCOME FROM DISTRIBUTIONS VALUE AT EXPENSES TO INCOME TO
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT TO END TOTAL AVERAGE NET AVERAGE NET
OF PERIOD INCOME TRANSACTIONS OPERATIONS SHAREHOLDERS OF PERIOD RETURN(a) ASSETS ASSETS
--------- ---------- ------------- ----------- ------------- --------- --------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FOR THE PERIOD ENDED DECEMBER 31,
1994-FST
shares(e)....... $1.00 $0.0379 $(0.0001) $0.0378 $(0.0378) $1.00 4.23%(b) 0.18%(b) 4.13%(b)
1994-FST Admin-
istration
shares(e)....... 1.00 0.0388 (0.0001) 0.0387 (0.0387) 1.00 3.97(b) 0.43(b) 4.24(b)
1994-FST Service
shares(e)....... 1.00 0.0349 (0.0001) 0.0348 (0.0348) 1.00 3.71(b) 0.68(b) 3.82(b)
FOR THE YEARS ENDED JANUARY 31,
1994-FST shares. 1.00 0.0301 0.0007 0.0308 (0.0307) 1.00 3.11 0.17 3.01
1994-FST Admin-
istration
shares.......... 1.00 0.0276 0.0006 0.0282 (0.0281) 1.00 2.85 0.42 2.76
1994-FST Service
shares.......... 1.00 0.0251 0.0008 0.0259 (0.0256) 1.00 2.60 0.67 2.51
1993-FST shares. 1.00 0.0342 0.0012 0.0354 (0.0355) 1.00 3.69 0.18 3.42
1993-FST Admin-
istration
shares(c)....... 1.00 0.0009 -- 0.0009 (0.0009) 1.00 2.83(b) 0.43(b) 2.83(b)
1993-FST Service
shares.......... 1.00 0.0296 0.0016 0.0312 (0.0309) 1.00 3.17 0.68 2.96
1992-FST shares. 1.00 0.0549 0.0015 0.0564 (0.0561) 1.00 5.84 0.18 5.49
1992-FST Service
shares(c)....... 1.00 0.0113 0.0006 0.0119 (0.0116) 1.00 4.47(b) 0.68(b) 3.77(b)
FOR THE PERIOD APRIL 24, 1990(D) THROUGH JANUARY 31,
1991-FST shares. 1.00 0.0600 0.0006 0.0606 (0.0605) 1.00 8.06(b) 0.21(b) 7.74(b)
<CAPTION>
RATIOS ASSUMING NO
WAIVER OF FEES AND NO
EXPENSE LIMITATIONS
-------------------------
RATIO OF NET
NET ASSETS RATIO OF INVESTMENT
AT END EXPENSES TO INCOME TO
OF PERIOD AVERAGE NET AVERAGE NET
(IN 000'S) ASSETS ASSETS
---------- ------------ ------------
<S> <C> <C> <C>
FOR THE PERIOD ENDED DECEMBER 31,
1994-FST
shares(e)....... $958,196 0.25%(b) 4.06%(b)
1994-FST Admin-
istration
shares(e)....... 82,124 0.50(b) 4.17(b)
1994-FST Service
shares(e)....... 81,162 0.75(b) 3.75(b)
FOR THE YEARS ENDED JANUARY 31,
1994-FST shares. 812,420 0.24 2.94
1994-FST Admin-
istration
shares.......... 24,485 0.49 2.69
1994-FST Service
shares.......... 35,656 0.74 2.44
1993-FST shares. 776,181 0.26 3.34
1993-FST Admin-
istration
shares(c)....... 1 0.51(b) 2.75(b)
1993-FST Service
shares.......... 5,155 0.76 2.88
1992-FST shares. 413,171 0.28 5.39
1992-FST Service
shares(c)....... 3,634 0.78(b) 3.67(b)
FOR THE PERIOD APRIL 24, 1990(d) THROUGH JANUARY 31,
1991-FST shares. 229,988 0.34(b) 7.61(b)
</TABLE>
- ----
(a) Assumes investment at the net asset value at the beginning of the period,
reinvestment of all distributions and a complete redemption of the invest-
ment at the net asset value at the end of the period.
(b) Annualized.
(c) FST Administration and FST Service share activity commenced during January
of 1993 and October of 1991, respectively.
(d) Commencement of operations.
(e) The information presented above reflects eleven months of operations due
to a change in fiscal year end. This change was caused by the reorganiza-
tion of the funds as a series of Goldman Sachs Money Market Trust.

8
<PAGE>

- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS
------------------------------------
RATIO OF NET
NET ASSET NET REALIZED TOTAL NET ASSET RATIO OF NET INVESTMENT
VALUE AT NET GAIN INCOME FROM DISTRIBUTIONS VALUE AT EXPENSES TO INCOME TO
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT TO END TOTAL AVERAGE NET AVERAGE NET
OF PERIOD INCOME TRANSACTIONS OPERATIONS SHAREHOLDERS OF PERIOD RETURN(a) ASSETS ASSETS
--------- ---------- ------------- ----------- ------------- --------- --------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FOR THE PERIOD ENDED DECEMBER 31,
1994 FST
shares(d)....... $1.00 $0.0424 $0.0000 $0.0424 $(0.0424) $1.00 4.36%(b) 0.15%(b) 4.64%(b)
1994 FST Admin-
istration
shares(d)....... 1.00 0.0426 0.0000 0.0426 (0.0426) 1.00 4.10(b) 0.40(b) 4.67(b)
FOR THE PERIOD ENDED JANUARY 31,
1993-FST
shares(c)....... 1.00 0.0256 0.0001 0.0257 (0.0257) 1.00 3.14(b) 0.08(b) 3.10(b)
1993-FST Admin-
istration
shares(c)....... 1.00 0.0120 0.0001 0.0121 (0.0121) 1.00 2.87(b) 0.35(b) 2.85(b)
<CAPTION>
RATIOS ASSUMING NO
WAIVER OF FEES AND NO
EXPENSE LIMITATIONS
-------------------------
NET
ASSETS AT RATIO OF NET
END RATIO OF INVESTMENT
OF PERIOD EXPENSES TO INCOME TO
(IN AVERAGE NET AVERAGE NET
000'S) ASSETS ASSETS
--------- ------------ ------------
<S> <C> <C> <C>
FOR THE PERIOD ENDED DECEMBER 31,
1994 FST
shares(d)....... $258,350 0.25%(b) 4.54%(b)
1994 FST Admin-
istration
shares(d)....... 54,253 0.50(b) 4.57(b)
FOR THE PERIOD ENDED JANUARY 31,
1993-FST
shares(c)....... 44,697 0.59(b) 2.59(b)
1993-FST Admin-
istration
shares(c)....... 14,126 0.76(b) 2.44(b)
</TABLE>
- ----
(a) Assumes investment at the net asset value at the beginning of the period,
reinvestment of all distributions and a complete redemption of the invest-
ment at the net asset value at the end of the period.
(b) Annualized.
(c) FST share and FST Administration share activity commenced April 6, 1993
and September 1, 1993, respectively.
(d) The information presented above reflects eleven months of operations due
to a change in fiscal year end. This change was caused by the reorganiza-
tion of the funds as a series of Goldman Sachs Money Market Trust.

9
<PAGE>

- -------------------------------------------------------------------------------

<TABLE>
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS
-----------------------------------
NET REALIZED RATIO OF NET
NET ASSET GAIN TOTAL NET ASSET RATIO OF NET INVESTMENT
VALUE AT NET ON INCOME FROM DISTRIBUTIONS VALUE AT EXPENSES TO INCOME TO
BEGINNING INVESTMENT INVESTMENT INVESTMENT TO END TOTAL AVERAGE NET AVERAGE NET
OF PERIOD INCOME TRANSACTIONS OPERATIONS SHAREHOLDERS OF PERIOD RETURN(a) ASSETS ASSETS
--------- ---------- ------------ ----------- ------------- --------- --------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FOR THE PERIOD ENDED DECEMBER 31,
1994-FST
shares(c)....... $1.00 $0.0156 $0.0000 $0.0156 $(0.0156) $1.00 3.41%(b) 0.07%(b) 3.42%(b)
1994-FST Admin-
istration
shares(c)....... 1.00 0.0136 0.0000 0.0136 (0.0136) 1.00 3.19(b) 0.32(b) 3.25(b)
1994-FST Service
shares(c)....... 1.00 0.0091 0.0000 0.0091 (0.0091) 1.00 3.11(b) 0.57(b) 3.32(b)
<CAPTION>
RATIOS ASSUMING NO
WAIVER OF FEES AND NO
EXPENSE LIMITATIONS
-------------------------
NET RATIO OF NET
ASSETS AT RATIO OF INVESTMENT
END OF EXPENSES TO INCOME TO
PERIOD AVERAGE NET AVERAGE NET
(IN 000'S) ASSETS ASSETS
---------- ------------ ------------
<S> <C> <C> <C>
FOR THE PERIOD ENDED DECEMBER 31,
1994-FST
shares(c)....... $183,570 0.31%(b) 3.18%(b)
1994-FST Admin-
istration
shares(c)....... 2.042 0.56(b) 3.01(b)
1994-FST Service
shares(c)....... 2.267 0.81(b) 3.08(b)
</TABLE>
- ----
(a) Assumes investment at the net asset value at the beginning of the period,
reinvestment of all distributions and a complete redemption of the invest-
ment at the net asset value at the end of the period.
(b) Annualized.
(c) FST share, FST Administration and FST Service share activity commenced
July 19, 1994, August 1, 1994 and September 23, 1994, respectively.

10
<PAGE>

AN INTRODUCTION TO THE FUNDS

The Trust is a no-load, open-end, management investment company registered
under the Investment Company Act of 1940, as amended (the "Investment Company
Act"). Each Fund is a separate pool of assets which pursues its investment ob-
jective through separate investment policies, as described below. Goldman Sachs
Asset Management, a separate operating division of Goldman, Sachs & Co.
("Goldman Sachs"), serves as the Funds' investment adviser and administrator
(the "Adviser" or "GSAM"). Goldman Sachs, which serves as the Funds' distribu-
tor and transfer agent, is one of the largest international investment banking
and brokerage firms in the United States.

The Funds are designed for institutional investors seeking a high rate of re-
turn, a stable net asset value and convenient liquidation privileges. The Funds
are particularly suitable for banks, corporations and other financial institu-
tions that seek investment of short-term funds for their own accounts or for
the accounts of their customers. Each Fund seeks to maintain a stable net asset
value of $1.00 per share. To facilitate this goal, each Fund's portfolio secu-
rities are valued by the amortized cost method as permitted by a rule of the
Securities and Exchange Commission ("SEC"). The SEC rule requires, among other
things, that all portfolio securities have at the time of purchase a maximum
remaining maturity of thirteen months and that each Fund maintain a dollar-
weighted average portfolio maturity of not more than ninety (90) days. Invest-
ments by each Fund must present minimal credit risk.

Each Fund, other than Financial Square Tax-Free Money Market Fund and Finan-
cial Square Municipal Money Market Fund, may only purchase "First Tier Securi-
ties" as defined herein. First Tier Securities are securities which are rated
(or that have been issued by an issuer that is rated with respect to a class of
short-term debt obligations, or any security within that class, comparable in
priority and quality with such securities) in the highest short-term rating
category by at least two nationally recognized statistical rating organizations
("NRSRO's"), or if only one NRSRO has assigned a rating, by that NRSRO.

Securities which are unrated may be purchased only if they are deemed to be
of comparable quality to First Tier Securities or, in the case of Financial
Square Tax-Free Money Market Fund and Financial Square Municipal Money Market
Fund, "Second Tier Securities" as defined herein. Financial Square Tax-Free
Money Market Fund and Financial Square Municipal Money Market Fund may invest
in First and Second Tier Securities. Second Tier Securities are securities
rated in the top two short-term rating categories by at least two NRSROs, or if
only one NRSRO has assigned a rating, by that NRSRO, but which are not First
Tier Securities. Purchases of securities which are unrated or rated by only one
NRSRO must be approved or ratified by the Trustees, except for purchases made
on behalf of Financial Square Tax-Free Money Market Fund and Financial Square
Municipal Money Market Fund.

NRSROs include Standard & Poor's Ratings Group, Moody's Investors Service,
Inc., Fitch Investors Service, Inc., Duff and Phelps, Inc., IBCA Limited and
its affiliate IBCA Inc., and Thomson BankWatch, Inc. For a description of each
NRSRO's rating categories, see Appendix A to the Statement of Additional Infor-
mation.

11
<PAGE>

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE PRIME OBLIGATIONS FUND

The investment objective of Financial Square Prime Obligations Fund ("Prime
Obligations Fund") is to maximize current income to the extent consistent with
the preservation of capital and the maintenance of liquidity. All of Prime Ob-
ligations Fund's assets will be invested in high quality money market instru-
ments. The Fund pursues its objective by investing exclusively in the following
instruments:

(A) securities issued or guaranteed as to principal and interest by the
U.S. Government, its agencies, authorities and instrumentalities ("U.S.
Government Securities");

(B) obligations issued or guaranteed by U.S. banks (including certificates
of deposit, commercial paper, unsecured bank promissory notes and bank-
ers' acceptances) which have more than $1 billion in total assets at
the time of purchase. Such obligations may also include debt obliga-
tions issued by U.S. subsidiaries of such banks;

(C) commercial paper (including variable amount master demand notes and as-
set-backed commercial paper) issued or guaranteed by U.S. corporations,
U.S. commercial banks, or other entities;

(D) unrated notes, paper or other instruments which are determined to be of
comparable high quality by the Adviser pursuant to criteria approved by
the Trustees;

(E) other short-term obligations issued or guaranteed by U.S. corporations,
or other entities (including short-term funding agreements);

(F) other short-term obligations issued or guaranteed by state and munici-
pal governments (such securities may be purchased when yields on such
securities are attractive when compared to other taxable investments);
and

(G) repurchase agreements.

Prime Obligations Fund may acquire any of the above securities on a forward
commitment or when-issued basis.

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE MONEY MARKET FUND

The investment objective of Financial Square Money Market Fund ("Money Market
Fund") is to maximize current income to the extent consistent with the preser-
vation of capital and the maintenance of liquidity. Money Market Fund pursues
its objective by investing in the following instruments:

(A) U.S. Government Securities;

(C) U.S. dollar denominated obligations issued or guaranteed (including
fixed time deposits) by foreign banks which have more than $1 billion
in total assets at the time of purchase, U.S. branches of such foreign
banks (Yankee obligations), foreign branches of such foreign banks, and
foreign branches of U.S. banks having more than $1 billion in total as-
sets at the time of purchase. Such bank obligations may be general ob-
ligations of the parent bank or may be limited to the issuing branch by
the terms of the specific obligation or by government regulation;

(D) commercial paper (including variable amount master demand notes and as-
set-backed commercial paper) issued or guar- anteed by U.S. corpora-
tions, U.S. commercial banks, foreign corporations, foreign commercial
banks or other entities, payable in U.S. dollars;

12
<PAGE>

(E) unrated notes, paper or other instruments which are determined to be of
comparable high quality by the Adviser pursuant to criteria approved by
the Trustees;

(F) other short-term obligations issued or guaranteed by U.S. corporations,
foreign corporations or other entities, payable in U.S. dollars (in-
cluding short-term funding agreements);

(G) other short-term obligations issued or guaranteed by state and munici-
pal governments (such securities may be purchased when yields on such
securities are attractive when compared to other taxable investments);

(H) U.S. dollar denominated obligations of the International Bank for Re-
construction and Development;

(I) U.S. dollar denominated obligations (limited to commercial paper and
other notes) issued or guaranteed by the governments of or entities lo-
cated or organized in the United Kingdom, France, Germany, Belgium, the
Netherlands, Italy, Switzerland, Denmark, Norway, Austria, Finland,
Spain, Ireland, Sweden, Australia, New Zealand, Japan, Cayman Islands
and Canada. Not more than 25% of Money Market Fund's total assets will
be invested in the securities of any one foreign government;

(J) asset-backed securities (including interests in pools of assets such as
motor vehicle installment purchase obligations and credit card receiv-
ables); and

(K) repurchase agreements.

Money Market Fund may acquire any of the above securities on a forward com-
mitment or when-issued basis.

Money Market Fund will invest more than 25% of the value of its total assets
in bank obligations (whether foreign or domestic) except that if adverse eco-
nomic conditions prevail in the banking industry (such as substantial losses on
loans, larger increases in non-performing assets, increased charge-offs and
losses of deposits) Money Market Fund may, for defensive purposes, temporarily
invest less than 25% of the value of its total assets in bank obligations. As a
result, Money Market Fund may be especially affected by favorable and adverse
developments in the banking industry.

RISKS OF FOREIGN SECURITIES. Investments in foreign securities and bank obli-
gations may present a greater degree of risk than investments in domestic secu-
rities because of less publicly-available financial and other information, less
securities regulation, potential imposition of foreign withholding and other
taxes, war, expropriation or other adverse governmental actions. Foreign banks
and their foreign branches are not regulated by U.S. banking authorities, and
generally are not bound by the accounting, auditing and financial reporting
standards applicable to U.S. banks.

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE TREASURY OBLIGATIONS FUND

The investment objective of Financial Square Treasury Obligations Fund
("Treasury Obligations Fund") is to maximize current income to the extent con-
sistent with the preservation of capital and the maintenance of liquidity. The
Fund pursues its objective by limiting its investments to securities issued or
guaranteed by the U.S. Treasury, which are backed by the full faith and credit
of the U.S. Government, and repurchase agreements relating to such securities.
This investment policy may not be changed unless authorized by a majority of
the outstanding shares of the Fund. Treasury Obligations Fund may acquire any
of the above securities on a forward commitment or when-issued basis.

13
<PAGE>

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE GOVERNMENT FUND

The investment objective of Financial Square Government Fund ("Government
Fund") is to maximize current income to the extent consistent with the preser-
vation of capital and the maintenance of liquidity. Although the Government
Fund intends to invest all of its assets in U.S. Government Securities and re-
purchase agreements relating to such securities, it pursues its objective by
investing at least 80% of its total assets in such securities. Government Fund
may acquire any of the above securities on a forward commitment or when-issued
basis.

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE TAX-FREE MONEY MARKET
FUND

The investment objective of Financial Square Tax-Free Money Market Fund
("Tax-Free Fund") is to maximize current income exempt from federal income tax
to the extent consistent with preservation of capital and maintenance of li-
quidity. The Tax-Free Fund pursues its objective by investing in obligations
issued by or on behalf of states, territories and possessions of the United
States and their political subdivisions, agencies, authorities and instrumen-
talities, and the District of Columbia ("Municipal Instruments"), the interest
from which is, in the opinion of bond counsel, if any, excluded from gross in-
come for federal income tax purposes and not an item of tax preference under
the federal alternative minimum tax. Such Municipal Instruments may include:

(A) fixed rate notes and similar debt instruments rated in the highest
short-term rating category or in one of the two highest long-term rat-
ing categories of at least one NRSRO;

(B) variable and floating rate demand instruments rated (i) in the highest
rating category for municipal notes or (ii) in one of the two highest
rating categories for long-term instruments or (iii) in the highest
rating category for commercial paper and municipal notes with demand
features of at least one NRSRO;

(D) unrated notes, paper or other instruments which are determined to be of
comparable high quality by the Adviser pursuant to criteria approved by
the Trustees; and

(E) municipal bonds rated in one of the two highest rating categories of at
least one NRSRO and unrated bonds determined to be of comparable qual-
ity by the Adviser pursuant to criteria approved by the Trustees.

Tax-Free Fund may acquire any of the above securities on a forward commitment
or when-issued basis.

As a matter of fundamental policy, at least 80% of Tax-Free Fund's net assets
will ordinarily be invested in Municipal Instruments. However, Tax-Free Fund
may temporarily invest more than 20% of its net assets in taxable money market
instruments for defensive purposes under extraordinary market conditions. In-
vestments in taxable money market instruments will be limited to those meeting
the quality standards of Tax-Free Fund. Tax-Free Fund will not invest in tax-
able instruments other than these money market instruments.

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE MUNICIPAL MONEY MARKET
FUND

The investment objective of Financial Square Municipal Money Market Fund
("Municipal Fund") is to maximize current income exempt from federal income tax
to the extent consistent with preservation of capital and maintenance of li-
quidity. Municipal Fund pursues its objective by investing in Municipal Instru-
ments, the interest from which is, in the opinion of bond counsel, if any, ex-
cluded from gross income for federal income tax

14
<PAGE>

purposes (but not necessarily exempt from federal alternative minimum tax or
state and local taxes). Such Municipal Instruments may include:

(A) fixed rate notes and similar debt instruments rated in the highest
short-term rating category or in one of the two highest long-term rat-
ing categories of at least one NRSRO;

(D) unrated notes, paper or other instruments which are determined to be of
comparable high quality by the Adviser pursuant to criteria approved by
the Trustees; and

Municipal Fund may acquire any of the above securities on a forward commit-
ment or when-issued basis.

As a matter of fundamental policy, at least 80% of Municipal Fund's net as-
sets will ordinarily be invested in Municipal Instruments. Municipal Fund may
invest up to 100% of total assets in private activity bonds the interest from
certain of which (and Municipal Fund's distributions of such interest), al-
though exempt from regular federal income tax, may be a preference item for
purposes of the federal alternative minimum tax. Municipal Fund may temporarily
invest more than 20% of its net assets in taxable money market instruments for
defensive purposes under extraordinary market conditions. Investments in tax-
able money market instruments will be limited to those meeting the quality
standards of Municipal Fund. Municipal Fund will not invest in taxable instru-
ments other than these money market instruments.

DESCRIPTION OF SECURITIES AND INVESTMENT TECHNIQUES

U.S. GOVERNMENT SECURITIES

U.S. Government Securities are obligations issued or guaranteed by the U.S.
Government, its agencies, authorities or instrumentalities. Some U.S. Govern-
ment Securities, such as Treasury bills, notes and bonds, which differ only in
their interest rates, maturities and times of issuance, are supported by the
full faith and credit of the United States. Others, such as obligations issued
or guaranteed by U.S. Government agencies, authorities or instrumentalities are
supported either by (a) the full faith and credit of the U.S. Government (such
as securities of the Government National Mortgage Association), (b) the right
of the issuer to borrow from the Treasury (such as securities of the Student
Loan Marketing Association), (c) the discretionary authority of the U.S. Gov-
ernment to purchase the agency's obligations (such as securities of the Federal
National Mortgage Association and the Federal Home Loan Mortgage Corporation),
or (d) only the credit of the issuer. No assurance can be given that the U.S.
Government will provide financial support to U.S. Government agencies, authori-
ties or instrumentalities in the future. U.S. Government Securities may include
zero coupon bonds. Such bonds may be purchased when yields are attractive.

Securities guaranteed as to principal and interest by the U.S. Government,
its agencies, authorities or instrumentalities are deemed to include (a) secu-
rities for which the payment of principal and interest is backed by an irrevo-
cable letter of credit issued by the U.S. Government, its agencies, authorities
or instrumentalities and (b) participations in loans made to foreign govern-
ments or their agencies that are so guaranteed. The secondary market for cer-
tain of these participations is limited. Such participations may therefore be
regarded as illiquid.

15
<PAGE>

Each Fund may also invest in separately traded principal and interest compo-
nents of securities guaranteed or issued by the U.S. Treasury if such compo-
nents are traded independently under the Separate Trading of Registered Inter-
est and Principal of Securities program ("STRIPS").

CUSTODIAL RECEIPTS

Each Fund (other than Treasury Obligations Fund and Government Fund) may also
acquire securities issued or guaranteed as to principal and interest by the
U.S. Government, its agencies, authorities or instrumentalities in the form of
custodial receipts that evidence ownership of future interest payments, princi-
pal payments or both on certain notes or bonds issued by the U.S. Government,
its agencies, authorities or instrumentalities. For certain securities law pur-
poses, custodial receipts are not considered obligations of the U.S. Govern-
ment.

MUNICIPAL INSTRUMENTS

Municipal notes include tax anticipation notes ("TANs"), revenue anticipation
notes ("RANs"), bond anticipation notes ("BANs"), tax and revenue anticipation
notes ("TRANs") and construction loan notes. Municipal bonds include general
obligation bonds and revenue bonds. General obligation bonds are backed by the
taxing power of the issuing municipality and are considered the safest type of
bonds. Revenue bonds are backed by the revenues of a project or facility such
as the tolls from a toll bridge. Revenue bonds also include lease rental reve-
nue bonds which are issued by a state or local authority for capital projects
and are secured by annual lease payments from the state or locality sufficient
to cover debt service on the authority's obligations. To the extent that a Fund
invests in unrated lease rental revenue bonds, the Trustees will monitor on an
ongoing basis the credit quality of such bonds and the risks of cancellation of
the underlying leases. Industrial development bonds (generally referred to un-
der current tax law as "private activity bonds") are a specific type of revenue
bond backed by the credit and security of a private user and therefore have
more potential risk. Municipal bonds may be issued in a variety of forms, in-
cluding commercial paper, tender option bonds and variable and floating rate
securities.

A tender option bond is a Municipal Instrument (generally held pursuant to a
custodial arrangement) having a relatively long maturity and bearing interest
at a fixed rate substantially higher than prevailing short-term, tax-exempt
rates. The bond is typically issued in conjunction with the agreement of a
third party, such as a bank, broker-dealer or other financial institution, pur-
suant to which such institution grants the security holder the option, at peri-
odic intervals, to tender its securities to the institution and receive the
face value thereof. As consideration for providing the option, the financial
institution receives periodic fees equal to the difference between the bond's
fixed coupon rate and the rate, as determined by a remarketing or similar agent
at or near the commencement of such period, that would cause the securities,
coupled with the tender option, to trade at par on the date of such determina-
tion. Thus, after payment of this fee, the security holder effectively holds a
demand obligation that bears interest at the prevailing short-term, tax-exempt
rate. However, an institution will not be obligated to accept tendered bonds in
the event of certain defaults or a significant downgrading in the credit rating
assigned to the issuer of the bond. The tender option will be taken into ac-
count in determining the maturity of the tender option bonds and a Fund's aver-
age portfolio maturity. There is a risk that a Fund will not be considered the
owner of a tender option bond for federal income taxes purposes and thus will
not be entitled to treat such interest as exempt from federal income tax.

Revenue Anticipation Warrants ("RAWs") are issued in anticipation of the is-
suer's receipt of revenues and present the risk that such revenues will be in-
sufficient to satisfy the issuer's payment obligations. The entire principal
amount of principal and interest on RAWs is due at maturity. RAWs have been is-
sued with maturities of up to 22 months. RAWs may also be repackaged as instru-
ments which include a demand feature that permits the holder to put the RAWs to
a bank or other

16
<PAGE>

financial institution at a purchase price equal to par plus accrued interest on
each interest rate reset date.

The value of floating and variable rate obligations generally is more stable
than that of fixed rate obligations in response to changes in interest rate
levels. Variable and floating rate obligations usually carry rights that permit
the Funds to sell them at par value plus accrued interest upon short notice.
The issuers or financial intermediaries providing rights to sell may support
their ability to purchase the obligations by obtaining credit with liquidity
supports. These may include lines of credit, which are conditional commitments
to lend and letters of credit, which will ordinarily be irrevocable, both of
which may be issued by domestic banks or foreign banks which have a branch,
agency or subsidiary in the United States. When considering whether an obliga-
tion meets a Fund's quality standards, the Fund will look to the creditworthi-
ness of the party providing the right to sell as well as to the quality of the
obligation itself. A Fund may consider the maturity of a variable or floating
rate Municipal Instrument to be shorter than its ultimate stated maturity if
the Fund has the right to demand prepayment of its principal at specified in-
tervals prior to the security's ultimate stated maturity, subject to the condi-
tions for using amortized cost valuation under the Investment Company Act. A
Fund may purchase such variable or floating rate obligations from the issuers
or may purchase certificates of participation, a type of floating or variable
rate obligation, which are interests in a pool of municipal obligations held by
a bank or other financial institution.

Tax-Free Fund does not currently intend to invest in industrial development
bonds (generally referred to under current tax law as "private activity
bonds"). Municipal Fund may invest up to 100% of its assets in private activity
bonds. Private activity bonds are a specific type of revenue bond backed by the
credit and security of a private user and therefore have more potential risk.
When distributed to shareholders of Municipal Fund as "exempt-interest divi-
dends," the interest from such bonds would be an item of tax preference under
the federal alternative minimum tax. See "Taxes" and "Distributions." If Tax-
Free Fund's policy not to invest in private activity bonds should change in the
future, shareholders would be notified and such investments would not exceed
20% of Tax-Free Fund's net assets.

Both Municipal Fund and Tax-Free Fund may invest 25% or more of the value of
their total assets in Municipal Instruments which are related in such a way
that an economic, business or political development or change affecting one Mu-
nicipal Instrument would also affect the other Municipal Instruments. For exam-
ple, Municipal Fund and Tax-Free Fund may invest all of their respective assets
in (a) Municipal Instruments the interest on which is paid solely from revenues
from similar projects such as hospitals, electric utility systems, multi-family
housing, nursing homes, commercial facilities (including hotels), steel compa-
nies or life care facilities, (b) Municipal Instruments whose issuers are in
the same state or (c) industrial development obligations. Concentration of a
Fund's investments in Municipal Instruments in any of the foregoing will sub-
ject the Fund, to a greater extent than if such investment was more limited, to
the risks of adverse economic, business or political developments affecting any
such state, industry or other area of concentration.

Each Fund (other than Treasury Obligations Fund and Government Fund) may pur-
chase Municipal Instruments which are backed by letters of credit, which will
ordinarily be irrevocable, issued by domestic banks or foreign banks which have
a branch, agency or subsidiary in the United States. In addition, such Funds
may acquire securities in the form of custodial receipts which evidence owner-
ship of future interest payments, principal payments or both on obligations of
certain state and local governments and authorities.

In order to enhance the liquidity, stability, or quality of a Municipal In-
strument, each Fund (other than Treasury Obligations Fund and Government Fund)
may acquire the right to sell the

17
<PAGE>

security to another party at a guaranteed price and date. These rights may be
referred to as puts, demand features, or standby commitments.

REPURCHASE AGREEMENTS

Each Fund may enter into repurchase agreements with selected broker-dealers,
banks or other financial institutions. A repurchase agreement is an agreement
under which a Fund purchases securities and the seller agrees to repurchase the
securities within a particular time at a specified price. Such price will ex-
ceed the original purchase price, the difference being income to the Fund, and
will be unrelated to the interest rate on the purchased security. A Fund's cus-
todian or sub-custodian will maintain custody of the purchased securities for
the duration of the agreement. The value of the purchased securities, including
accrued interest, will at all times exceed the value of the repurchase agree-
ment. In the event of bankruptcy of the seller or failure of the seller to re-
purchase the securities as agreed, a Fund could suffer losses, including loss
of interest on or principal of the security and costs associated with delay and
enforcement of the repurchase agreement. In evaluating whether to enter into a
repurchase agreement, the Adviser will carefully consider the creditworthiness
of the seller pursuant to procedures reviewed and approved by the Trustees.
Distributions of the income from repurchase agreements entered into by a Fund
will be taxable to its shareholders. In addition, each Fund, together with
other registered investment companies having advisory agreements with the Ad-
viser or any of its affiliates, may transfer uninvested cash balances into a
single joint account, the daily aggregate balance of which will be invested in
one or more repurchase agreements.

FORWARD COMMITMENTS AND WHEN-ISSUED SECURITIES

Each Fund may purchase when-issued securities and make contracts to purchase
or sell securities for a fixed price at a future date beyond customary settle-
ment time. A Fund is required to hold and maintain in a segregated account with
the Fund's custodian or sub-custodian until the settlement date, cash or liq-
uid, high quality debt obligations in an amount sufficient to meet the purchase
price. Alternatively, a Fund may enter into offsetting contracts for the for-
ward sale of other securities that it owns. Securities purchased or sold on a
when-issued or forward commitment basis involve a risk of loss if the value of
the security to be purchased declines prior to the settlement date or if the
value of the security to be sold increases prior to the settlement date. Al-
though a Fund would generally purchase securities on a when-issued or forward
commitment basis with the intention of acquiring securities for its portfolio,
the Fund may dispose of a when-issued security or forward commitment prior to
settlement if the Adviser deems it appropriate to do so.

OTHER INVESTMENT COMPANIES

Each Fund (other than the Treasury Obligations Fund and Government Fund) may
invest in securities issued by other money market investment companies. Such
investments will be determined by the Adviser, under guidelines established by
the Trustees, to present minimal credit risks. The amount of a Fund's invest-
ments in securities of other investment companies will be subject to the limi-
tations on such investments prescribed by the Investment Company Act and cer-
tain state securities regulations. These limits include a prohibition on any
Fund acquiring more than 3% of the voting shares of any other investment com-
pany and a prohibition on investing more than 5% of a Fund's assets in securi-
ties of any one investment company or more than 10% of its assets in securities
of all investment companies. Each Fund will indirectly bear its proportionate
share of any management fees and other expenses paid by such other investment
companies. Goldman Sachs will not impose a portion of the management fees pay-
able by a Fund (the "Acquiring Fund") with respect to assets invested in an-
other money market investment company (the "Acquired Fund") as follows. The
amount of the management fees otherwise payable by the Acquiring Fund and not
imposed by Goldman Sachs will be equal to the amount of management fees indi-

18
<PAGE>

rectly paid by the Acquiring Fund as a shareholder of the Acquired Fund. Such
other investment companies will have investment objectives, policies and re-
strictions substantially similar to those of the Acquiring Fund and will be
subject to substantially the same risks.

INVESTMENT LIMITATIONS

PRIME OBLIGATIONS FUND, MONEY MARKET FUND, TREASURY OBLIGATIONS FUND AND GOV-
ERNMENT FUND (THE "TAXABLE FUNDS"). Pursuant to SEC Rule 2a-7 under the Invest-
ment Company Act, each Taxable Fund may not invest more than 5% of its assets
(taken at amortized cost) in the securities of any one issuer (except U.S. Gov-
ernment Securities and repurchase agreements collateralized by such securi-
ties). Each Taxable Fund may, however, invest more than 5% of its assets in the
First Tier Securities of a single issuer for a period of up to three business
days after the purchase thereof, although a Taxable Fund may not make more than
one such investment at any time. No Taxable Fund may invest in securities which
are Second Tier Securities at the time of purchase. Immediately after the ac-
quisition of any put by a Taxable Fund, not more than 5% of such Fund's total
assets may be invested in securities issued by or subject to puts from the same
issuer. However, this limitation will not apply to the issuer of unconditional
puts if the Taxable Fund does not have more than 10% of its total assets in-
vested in securities issued by or subject to unconditional puts from such issu-
er. Pursuant to SEC Rule 2a-7, the foregoing restrictions are not applicable to
Municipal Fund and Tax-Free Fund. The foregoing operating policies are more re-
strictive than the fundamental policy set forth below, which would give a Fund
the ability to invest, with respect to 25% of its assets, more than 5% of its
assets in any one issuer. Each Fund operates in accordance with these operating
policies which comply with SEC Rule 2a-7.

MUNICIPAL FUND AND TAX-FREE FUND. Pursuant to SEC Rule 2a-7, immediately af-
ter the acquisition of any put by either Municipal Fund or Tax-Free Fund, not
more than 5% of such Fund's total assets may be invested in securities issued
by or subject to puts from the same issuer. However, this limitation applies
only with respect to 75% of each such Fund's total assets. Also, with respect
to such Funds, this limitation will not apply to an issuer of unconditional
puts if the Fund does not have more than 10% of its total assets invested in
securities issued by or subject to unconditional puts from such issuer. Each of
Municipal Fund and Tax-Free Fund will operate in accordance with this operating
policy which complies with SEC Rule 2a-7.

INVESTMENT RESTRICTIONS

The Trust, on behalf of each Fund, has adopted certain fundamental investment
restrictions which are enumerated in detail in the Statement of Additional In-
formation and which may not be changed with respect to any Fund unless autho-
rized by a majority of its outstanding shares. Among other restrictions, a Fund
may not, with respect to 75% of its total assets taken at market value, invest
more than 5% of its total assets in the securities of any one issuer (except
U.S. Government Securities and repurchase agreements collateralized by such se-
curities) or acquire more than 10% of any class of the outstanding voting secu-
rities of any one issuer. In addition, each Fund (other than Money Market Fund
as provided below) may not invest more than 25% of its total assets in securi-
ties of issuers in any one industry (the electric, gas, water and telephone
utility industries being treated as separate industries for the purpose of the
restriction), provided that there is no 25% limitation in respect of, and each
Fund reserves freedom of action to concentrate its investments in, U.S. Govern-
ment Securities, obligations (other than commercial paper) issued or guaranteed
by U.S. banks and U.S. branches of foreign banks, provided such branches are
subject to the same regulations as U.S. banks, and repurchase agreements and
loans of securities collateralized by U.S. Government Securities or such bank
obligations, provided the investment policies of the Fund permit the particular
investment.

19
<PAGE>

Money Market Fund will concentrate in obligations of domestic and foreign
banks, except during adverse conditions in the banking industry. Tax diversifi-
cation requirements for qualification as a regulated investment company apply
to the Funds and are in certain instances more strict than these investment re-
strictions. In applying the above restrictions, a Fund will not treat a guaran-
tee as a security issued by the guarantor if the value of all securities issued
or guaranteed by the guarantor and owned by the Fund does not exceed 10% of its
total assets.

Each Fund may borrow money from banks only for temporary or emergency pur-
poses in an aggregate amount not exceeding one-third of the value of its total
assets. A Fund may not purchase securities while such borrowings exceed 5% of
the value of its assets. Except for such enumerated restrictions and as other-
wise indicated in this Prospectus, the investment objective and policies of
each Fund are not fundamental policies and accordingly may be changed by the
Trust's Board of Trustees without obtaining the approval of the Fund's share-
holders.

RESTRICTED AND OTHER ILLIQUID SECURITIES

Each Fund may purchase securities that are not registered ("restricted secu-
rities") under the Securities Act of 1933 ("1933 Act"), but can be offered and
sold to "qualified institutional buyers" under Rule 144A under the 1933 Act.
However, a Fund will not invest more than 10% of its net assets in illiquid in-
vestments, which includes fixed time deposits maturing in more than seven days
and restricted securities. Restricted securities (including commercial paper
issued pursuant to Section 4(2) of the 1933 Act) which the Board of Trustees
has determined are liquid, based upon a continuing review of the trading mar-
kets for the specific restricted security, will not be deemed to be illiquid
investments for purposes of this restriction. The Board of Trustees may adopt
guidelines and delegate to the Adviser the daily function of determining and
monitoring the liquidity of restricted securities. The Board, however, will re-
tain sufficient oversight and be ultimately responsible for the determinations.
Since it is not possible to predict with assurance that the market for re-
stricted securities eligible for resale under Rule 144A will continue to be
liquid, the Board will carefully monitor each Fund's investments in these secu-
rities, focusing on such important factors, among others, as valuation, liquid-
ity and availability of information. This investment practice could have the
effect of increasing the level of illiquidity in each Fund to the extent that
qualified institutional buyers become for a time uninterested in purchasing
these restricted securities.

In addition, each Fund may not invest in repurchase agreements maturing in
more than seven days and securities which are not readily marketable if, as a
result thereof, more than 10% of the net assets of the Fund (taken at market
value) would be invested in such investments. Certain repurchase agreements
which mature in more than seven days can be liquidated before the nominal fixed
term on seven days or less notice. Such repurchase agreements will be regarded
as liquid instruments.

MANAGEMENT

THE ADVISER AND ADMINISTRATOR

GSAM, One New York Plaza, New York, New York, a separate operating division
of Goldman Sachs, acts as investment adviser and administrator to the Funds.
Goldman Sachs registered as an investment adviser in 1981. As of January 31,
1995, Goldman Sachs, together with its affiliates, acted as investment adviser,
administrator or distributor for approximately $48.7 billion in assets.

As of November 25, 1994, Goldman Sachs and its consolidated subsidiaries had
assets of approximately $54.6 billion and partners' capital of $1.8 billion and
ranked as one of the largest international investment banking and brokerage
firms in the United States. Founded in 1869, Goldman Sachs is a major player
among investment banking and brokerage firms providing a broad range of financ-
ing and investment services both in the United States and abroad.

20
<PAGE>

Pursuant to an SEC order, each Taxable Fund may enter into principal transac-
tions in certain taxable money market instruments, including repurchase agree-
ments, with Goldman Sachs or its affiliate, Goldman Sachs Money Market, L.P.

Under the Investment Advisory Agreements, GSAM continually manages the port-
folio of each Fund, including the purchase, retention and disposition of its
securities and other assets. The management of each Fund's portfolio is subject
to the supervision of the Board of Trustees and that Fund's investment poli-
cies. For these services, GSAM is entitled to a monthly fee at an annual rate
equal to .075% of the Fund's average daily net assets.

GSAM has agreed that it will not impose a portion of its advisory fee, pursu-
ant to applicable contracts. For the fiscal period ended December 31, 1994,
Prime Obligations Fund, Money Market Fund, Treasury Obligations Fund, Govern-
ment Fund and Tax-Free Fund paid advisory fees at an effective annual rate of
0.03%, 0.01%, 0.03%, 0.03% and 0.00%, respectively, of average daily net as-
sets. Municipal Fund was not in operation during such period and, therefore,
paid no advisory fee.

GSAM has agreed to reduce or otherwise limit certain expenses of each Fund
(excluding fees payable to Service Organizations, as defined herein, management
and account administration fees, and taxes, interest, brokerage and litigation,
indemnification and other extraordinary expenses) on an annualized basis to
.01% of the Fund's average daily net assets. GSAM has no current intention to
but may discontinue or modify any of such reductions or limitations at its dis-
cretion.

In addition, under the Trust's Administration Agreement with GSAM, GSAM ad-
ministers each Fund's business affairs subject to the supervision of the Board
of Trustees and, in connection therewith, furnishes the Funds with office fa-
cilities, bears all fees and costs of the services furnished by the transfer
agent to the Funds, and is responsible for ordinary clerical, recordkeeping and
bookkeeping functions required to be performed by the Funds (excluding those
performed by each Fund's custodian), preparation and filing of documents re-
quired to comply with federal and state securities laws, supervising the activ-
ities of the Funds' custodian and transfer agent, providing assistance in con-
nection with meetings of the Board of Trustees and shareholders and other ad-
ministrative services necessary to conduct each Fund's business.

For those administrative services and facilities each Fund pays an account
administration fee to GSAM. The account administration fee is charged and allo-
cated to each shareholder account daily in the amount equal on an annual basis
to .13% of the Fund's average daily net assets. For the fiscal period ended De-
cember 31, 1994, Prime Obligations Fund, Money Market Fund and Treasury Obliga-
tions Fund paid GSAM a fee for account administration services at the foregoing
annual rate. Government Fund and Tax-Free Fund paid GSAM an effective annual
fee of 0.11% and 0.05%, respectively, of average daily net assets.

THE DISTRIBUTOR AND TRANSFER AGENT

Goldman Sachs, 4900 Sears Tower, Chicago, Illinois 60606, serves as the Dis-
tributor of shares of each Fund pursuant to a Distribution Agreement with the
Trust. The Distributor will assist in the sale of shares of each Fund upon the
terms described herein. Goldman Sachs also serves as the Transfer Agent of each
Fund.

TAXES

Each Fund is treated as a separate entity for federal income tax purposes and
intends to qualify and be treated as a regulated investment company under
Subchapter M of the Internal Revenue Code of 1986 (the "Code") for each taxable
year. To qualify as such, each Fund must satisfy certain requirements relating
to the sources of its income, diversification of its assets and distribution of
its income to shareholders. As a regulated investment company, each Fund will
not be subject to federal income

21
<PAGE>

or excise tax on any net investment income and net realized capital gains that
are distributed to its shareholders in accordance with certain timing require-
ments of the Code.

Dividends paid by a Fund from net investment income (except, in the case of
Tax-Free Fund and Municipal Fund, tax-exempt interest), the excess of net
short-term capital gain over net long-term capital loss and taxable original
issue discount or market discount income will be taxable to shareholders as or-
dinary income. Dividends paid by a Fund from the excess of net long-term capi-
tal gain over net short-term capital loss will be taxable as long-term capital
gain regardless of how long the shareholders have held their shares. These tax
consequences will apply to taxable distributions of a Fund (including a Fund
that also pays exempt-interest dividends, as described below) regardless of
whether distributions are received in cash or reinvested in shares. Certain
distributions paid by the Funds in January of a given year will be taxable to
shareholders as if received on December 31 of the year in which they are de-
clared. Shareholders will be informed annually about the amount and character
of distributions received from the Funds for federal income tax purposes, in-
cluding any distributions that may constitute a return of capital or any dis-
tribution of Municipal Fund that may constitute a tax preference item under the
federal alternative minimum tax.

Municipal Fund and Tax-Free Fund each intends to satisfy certain requirements
of the Code for the payment of "exempt-interest dividends" not included in
shareholders' federal gross income. Dividends paid by these Funds from interest
on tax-exempt obligations and properly designated by the Funds as exempt-inter-
est dividends, including exempt-interest dividends received from other regu-
lated investment companies, will generally be exempt from federal income tax,
although a portion of such dividends may be subject to the federal alternative
minimum tax. Exempt-interest dividends will be considered in computing the "ad-
justed current earnings" preference item for purposes of the corporate federal
alternative minimum tax, the corporate environmental tax, and the extent, if
any, to which social security or railroad retirement benefits are taxable. Per-
sons who are "substantial users" of facilities financed by certain industrial
development or private activity bonds should consult their own tax advisers be-
fore purchasing shares of these Funds. Interest incurred to purchase or carry
shares of these Funds will not be deductible for federal income tax purposes to
the extent related to exempt-interest dividends paid by the Funds and may not
be deductible in whole or in part for state income tax purposes.

Individuals and certain other classes of shareholders may be subject to 31%
backup withholding of federal income tax on taxable distributions if they fail
to furnish their correct taxpayer identification number and certain certifica-
tions or if they are otherwise subject to backup withholding. Individuals, cor-
porations and other shareholders that are not U.S. persons under the Code are
subject to different tax rules and may be subject to nonresident alien with-
holding at the rate of 30% (or a lower rate provided by an applicable tax trea-
ty) on amounts treated as ordinary dividends from the Funds.

If a Fund invests in foreign securities, it may be subject to foreign with-
holding or other foreign taxes on income earned on such securities and is ex-
pected to be unable to pass such taxes through to shareholders, who therefore
are not expected to include such taxes in income or be entitled to claim for-
eign tax credits or deductions with respect to such taxes.

In addition to federal taxes, a shareholder may be subject to state, local or
foreign taxes on payments received from a Fund. A state income (and possibly
local income and/or intangible property) tax exemption is generally available
to the extent a Fund's distributions are derived from interest on (or, in the
case of intangibles taxes, the value of its assets is attributable to) certain
U.S. Government obligations and/or tax-exempt municipal obligations issued by
or on behalf of the particular state or a political subdivision thereof, pro-
vided in some

22
<PAGE>

states that certain thresholds for holdings of such obligations and/or report-
ing requirements are satisfied. Shareholders should consult their own tax ad-
visers concerning these matters.

NET ASSET VALUE

The net asset value of each Fund (except Government Fund) is determined as of
the close of regular trading on the New York Stock Exchange (normally 4:00 p.m.
New York time) on each Business Day. The net asset value of Government Fund is
determined as of 5:00 p.m. New York time on each Business Day. Net asset value
per share for each class of shares of each Fund is calculated by determining
the amount of net assets attributable to each class of shares and dividing by
the number of shares for such class.

On any Business Day, as defined herein, when the Public Securities Associa-
tion ("PSA") recommends that the securities market close early, each Fund re-
serves the right to cease accepting purchase and redemption orders for same
Business Day credit at the time PSA recommends that the securities market
close. On days any Fund closes early, purchases and redemption orders received
after the PSA recommended closing time will be credited for the next Business
Day. In addition, each Fund reserves the right to advance the time by which
purchase and redemption orders must be received for same Business Day credit as
permitted by the SEC.

Each Fund's portfolio securities are valued at their amortized cost, which
does not take into account unrealized securities gains or losses. This method
involves initially valuing an instrument at its cost and thereafter assuming a
constant amortization to maturity of any premium paid or discount received.

YIELD INFORMATION

From time to time, each Fund may advertise its yield and effective yield. The
yield of a Fund refers to the income generated by an investment in that Fund
over a seven-day period (which period will be stated in the advertisement).
This income is then annualized; that is, the amount of income generated by the
investment during that week is assumed to be generated each week over a 52-week
period and is shown as a percentage of the investment. The effective yield is
calculated similarly but, when annualized, the income earned by an investment
in the Fund is assumed to be reinvested. The effective yield will be slightly
higher than the yield because of the compounding effect of this assumed rein-
vestment.

Municipal Fund and Tax-Free Fund may each also quote tax-equivalent yield.
Each Fund's tax-equivalent yield is calculated by determining the rate of re-
turn that would have to be achieved on a fully taxable investment to produce
the after-tax equivalent of the Fund's yield, assuming certain tax brackets for
a shareholder.

Investors should note that the investment results of a Fund are based on his-
torical performance and will fluctuate over time. Any presentation of a Fund's
yield, effective yield or tax-equivalent yield for any prior period should not
be considered a representation of what an investment may earn or what a Fund's
yield, effective yield or tax-equivalent yield may be in any future period.

Yield, effective yield and tax-equivalent yield will be calculated separately
for FST Shares, FST Administration Shares and FST Service Shares. Because each
such class of shares is subject to different expenses, the net yield of such
classes of a Fund for the same period may differ. Due to the fees payable under
the Service Plan and the Administration Plan, the investment performance, for
any period, of the FST Shares will always be higher than that of the FST Serv-
ice Shares and FST Administration Shares and the investment performance of the
FST Administration Shares will always be higher than that of the FST Service
Shares. See "Organization and Shares of the Trust" below.

23
<PAGE>

ORGANIZATION AND SHARES OF THE TRUST

The Trust was formed as a business trust under the laws of The Commonwealth
of Massachusetts on December 6, 1978. Each Fund became a series of the Trust in
December 1994 pursuant to reorganization transactions between the Trust and Fi-
nancial Square Trust. The Trustees of the Trust are responsible for the overall
management and supervision of its affairs. The Declaration of Trust authorizes
the Trustees to classify or reclassify any series or portfolio of shares into
one or more classes. The Trustees have authorized the issuance of three classes
of shares of each of the Funds, which are: FST Shares, FST Administration
Shares and FST Service Shares.

Each FST Share, FST Administration Share and FST Service Share of a Fund rep-
resents an equal proportionate interest in the assets belonging to that Fund.
It is contemplated that most shares will be held in accounts of which the rec-
ord owner is a bank or other institution acting, directly or through an agent,
as nominee for its customers who are the beneficial owners of the shares or an-
other organization designated by such bank or institution. FST Shares may be
purchased for accounts held in the name of an investor or institution that is
not compensated by the Fund for services provided to the institution's invest-
ors. FST Administration Shares may be purchased for accounts held in the name
of an institution that provides certain account administration services to its
customers, including maintenance of account records and processing orders to
purchase, redeem and exchange FST Administration Shares. FST Administration
Shares of each Fund bear the cost of administration fees at the annual rate of
up to .25 of 1% of the average daily net assets of such Shares. FST Service
Shares may be purchased for accounts held in the name of an institution that
provides certain account administration and shareholder liaison services to its
customers, including maintenance of account records, processing orders to pur-
chase, redeem and exchange FST Service Shares, responding to customer inquiries
and assisting customers with investment procedures. FST Service Shares of each
Fund bear the cost of service fees at the annual rate of up to .50 of 1% of the
average daily net assets of such Shares. (Institutions that provide services to
holders of FST Administration or Service Shares are referred to in this Pro-
spectus as "Service Organizations").

It is possible that an institution or its affiliate may offer different clas-
ses of shares to its customers and thus receive different compensation with re-
spect to different classes of shares of the same Fund. In the event a Fund is
distributed by salespersons or any other persons, they may receive different
compensation with respect to different classes of shares of Fund. FST Adminis-
tration Shares and FST Service Shares each have certain exclusive voting rights
on matters relating to their respective plans. Shares of each class may be ex-
changed only for shares of the same class in another Fund. Except as described
above, the three classes of shares are identical. Certain aspects of the shares
may be altered, after advance notice to shareholders, if it is deemed necessary
in order to satisfy certain tax regulatory requirements.

When issued, shares are fully paid and nonassessable by the Trust. In the
event of liquidation, shareholders are entitled to share pro rata in the net
assets of the applicable Fund available for distribution to such shareholders.
Shares entitle their holders to one vote per share, are freely transferable and
have no preemptive, subscription or conversion rights.

As of February 24, 1995, Commerce Bank of Kansas City NA owned beneficially
35.20% of the outstanding shares of Financial Square Tax-Free Money Market
Fund.

Shares of a Fund will be voted separately by Fund with respect to matters
pertaining to that Fund except for the election of Trustees and ratification of
independent accountants. For example, shareholders of each Fund are required to
approve the adoption of any investment advisory agreement

24
<PAGE>

relating to that Fund and any changes in fundamental investment restrictions or
policies of such Fund. Approval by the shareholders of one Fund is effective
only as to that Fund.

The Trust does not intend to hold annual shareholder meetings, although spe-
cial meetings may be called for such purposes as electing or removing Trustees,
complying with a requirement of the Investment Company Act, or such other pur-
poses as are set forth above. The Trust will facilitate shareholder communica-
tion as required and in the manner prescribed by Section 16(c) of the Invest-
ment Company Act.

25
<PAGE>

PURCHASE OF SHARES

FST Shares of a Fund may be purchased on any Business Day at the net asset
value next determined after receipt of a purchase order in the manner set
forth below, and provided that The Northern Trust Company ("Northern"), Chica-
go, Illinois, the sub-custodian for State Street Bank and Trust Company
("State Street"), receives the purchase price in Federal Funds on the same
Business Day. Purchase orders may be made by telephoning Goldman Sachs at 800-
621-2550 or by a written request addressed to Goldman Sachs, Attention: Share-
holder Services, Goldman Sachs Money Market Trust, 4900 Sears Tower, Chicago,
Illinois 60606. It is strongly recommended that payment be effected by wiring
Federal Funds to Northern.

Purchases of FST Shares may also be made by delivering a Federal Reserve
draft or check payable to the appropriate Fund and drawn on a U.S. bank to
Goldman Sachs, Attention: Shareholder Services, Goldman Sachs Money Market
Trust, 4900 Sears Tower, Chicago, Illinois 60606. It is expected that Federal
Reserve drafts will ordinarily be converted to Federal Funds on the day of re-
ceipt and that checks will be converted to Federal Funds within two Business
Days after receipt. FST Shares purchased by check may not be redeemed until
the check has cleared, as described under "Redemption of Shares."

- -------------------------------------------------------------------------------

FST Shares of the Prime Obligations Fund, Money Market Fund and Treasury Ob-
ligations Fund are deemed to have been purchased when an order becomes effec-
tive and are entitled to dividends on FST Shares purchased as follows:

<TABLE>
<CAPTION>
IF ORDER IS RECEIVED BY GOLDMAN SACHS DIVIDENDS BEGIN
------------------------------------- ---------------
<S> <C>
By:3:00 p.m.--N.Y. time Same Business Day
- ---------------------------------------------------------------
After:3:00 p.m.--N.Y. time Next Business Day
- ---------------------------------------------------------------
</TABLE>

FST Shares of the Government Fund are deemed to have been purchased when an
order becomes effective and are entitled to dividends on FST Shares purchased
as follows:

<TABLE>
<CAPTION>
IF ORDER IS RECEIVED BY GOLDMAN SACHS DIVIDENDS BEGIN
------------------------------------- ---------------
<S> <C>
By:5:00 p.m.--N.Y. time Same Business Day
- ---------------------------------------------------------------
After:5:00 p.m.--N.Y. time Next Business Day
- ---------------------------------------------------------------
</TABLE>

FST Shares of the Tax-Free Fund and Municipal Fund are deemed to have been
purchased when an order becomes effective and are entitled to dividends on FST
Shares purchased as follows:

<TABLE>
<CAPTION>
IF ORDER IS RECEIVED BY GOLDMAN SACHS DIVIDENDS BEGIN
------------------------------------- ---------------
<S> <C>
By:1:00 p.m.- N.Y. time Same Business Day
- ---------------------------------------------------------------
After:1:00 p.m.- N.Y. time Next Business Day
- ---------------------------------------------------------------
</TABLE>

26
<PAGE>

A Business Day means any day on which the New York Stock Exchange is open,
except for days on which Chicago, Boston or New York banks are closed for local
holidays.

FST Shares of the Funds are purchased at the net asset value per Share with-
out the imposition of a sales charge. However, banks, trust companies or other
institutions through which investors acquire FST Shares may impose charges in
connection with transactions in such Shares.

Goldman Sachs, as each Fund's transfer agent, will maintain a complete record
of transactions and FST Shares held in each shareholder's account.

The Trust and Goldman Sachs each reserves the right to reject any purchase
order for any reason.

Goldman Sachs may, at its own expense, provide compensation to certain deal-
ers whose customers purchase significant amounts of shares of a Fund. The
amount of such compensation may be made on a one-time and/or periodic basis,
and may be up to 25% of the annual fees that are earned by GSAM as investment
adviser to such Fund (after adjustments) and are attributable to shares held by
such customers. Such compensation will not represent an additional expense to
the Fund or its shareholders, since it will be paid from assets of Goldman
Sachs or its affiliates.

INITIAL PURCHASES

The minimum requirement for investing in a Fund is $50 million ($10 million
if an investor satisfies the minimum initial investment in any other Fund). The
Trust and Goldman Sachs each reserves the right to waive the minimum investment
requirement. Before or immediately after placing an initial purchase order, in-
vestors should complete and send to Goldman Sachs the Account Information Form
included at the end of this Prospectus.

SUBSEQUENT INVESTMENTS

There is no minimum amount required for subsequent investments. Orders for
the purchase of additional FST Shares should be accompanied by information
identifying the account and the Fund in which FST Shares are to be purchased.

REPORTS TO SHAREHOLDERS

FST Shareholders of each Fund will receive an annual report containing au-
dited financial statements and a semiannual report. Each FST Shareholder will
also be furnished with an individual monthly statement. Upon request, a printed
confirmation for each transaction will be provided by Goldman Sachs. Any divi-
dends and distributions paid by a Fund are also reflected in regular statements
issued by Goldman Sachs. A year-to-date statement for any account will be pro-
vided upon request made to Goldman Sachs. FST Shareholders with inquiries re-
garding a Fund may call Goldman Sachs at 800-621-2550 (8:00 a.m. to 6:30 p.m.
New York time) or write Goldman Sachs at the address shown under "The Distribu-
tor and Transfer Agent."

DISTRIBUTIONS

All or substantially all of each Fund's net investment income will be de-
clared daily (as of 4:00 p.m. New York time for each Fund other than Government
Fund and as of 5:00 p.m. New York time for Government Fund) as a dividend and
distributed to FST Shareholders monthly. Distributions will be made in addi-
tional FST Shares of the same Fund or, at the election of FST Shareholders, in
cash. The election to reinvest dividends and distributions or receive them in
cash may be changed at any time upon written notice to Goldman Sachs. If no
election is made, all dividends and capital gain distributions will be rein-
vested. Dividends will be reinvested as of the last calendar day of each month.
Cash distributions will be paid on or about the first business day of each
month. Net short-term capital gains, if any, will be distributed in accordance
with the requirements of the Code and may be reflected

27
<PAGE>

in the Fund's daily distributions. Each Fund may distribute at least annually
its long-term capital gains, if any, after reduction by available capital
losses. In order to avoid excessive fluctuations in the amount of monthly cap-
ital gains distributions, a portion of any net capital gains realized on the
disposition of securities during the months of November and December may be
distributed during the subsequent calendar year. Although realized gains and
losses on the assets of a Fund are reflected in the net asset value of the
Fund, they are not expected to be of an amount which would affect the Fund's
net asset value of $1.00 per share.

A Fund's net investment income consists of the excess of (i) accrued
interest or discount (including both original issue and market discount on
taxable securities) on portfolio securities, and (ii) any income of the Fund
from sources other than capital gains over (iii) the amortization of market
premium on all portfolio securities and (iv) the estimated expenses of the
Fund, including a proportionate share of the general expenses of the Trust.

EXCHANGES

FST Shares of each Fund may be exchanged for the relevant class of any Fund
or Portfolio of Goldman Sachs Money Market Trust at the net asset value next
determined either by writing to Goldman Sachs, Attention: Shareholder
Services, Goldman Sachs Money Market Trust, 4900 Sears Tower, Chicago,
Illinois 60606 or, if previously elected in the Account Information Form
included at the end of this Prospectus, by calling Goldman Sachs at 800-621-
2550. All telephone exchanges must be registered in the same name(s) and with
the same address as are registered in the Fund from which the exchange is
being made. It may be difficult to implement the telephone exchange privilege
in times of drastic economic or market changes. In an effort to prevent
unauthorized or fraudulent exchange requests by telephone, Goldman Sachs
employs reasonable procedures as set forth under "Redemption of Shares" to
confirm that such instructions are genuine. Exchanges are available only in
states where the exchange may legally be made. The exchange privilege may be
modified or withdrawn at any time on 60 days' written notice.

REDEMPTION OF SHARES

HOW TO REDEEM

FST Shareholders may redeem FST Shares of a Fund without charge upon request
on any Business Day at the net asset value next determined after receipt of
the redemption request. Redemption requests may be made by telephoning Goldman
Sachs at 800-621-2550 or by a written request addressed to Goldman Sachs, At-
tention: Shareholder Services, Goldman Sachs Money Market Trust, 4900 Sears
Tower, Chicago, Illinois 60606. The letter of instruction must specify the
number of FST Shares of the particular Fund to be redeemed, the account num-
ber, payment instructions and the exact registration on the account. Signa-
tures must be guaranteed in accordance with the procedures set forth below, if
the proceeds are to be paid to other than pre-established instructions on file
with the Fund. A FST Shareholder may request redemptions by telephone only if
the optional telephone redemption privilege has been elected on the Account
Information Form included at the end of this Prospectus. It may be difficult
to implement redemptions by telephone in times of drastic economic or market
changes.

28
<PAGE>

time to time. If reasonable procedures are not implemented, the Trust may be
liable for any loss due to unauthorized or fraudulent transactions. In all
other cases, neither the Trust nor Goldman Sachs will be responsible for the
authenticity of redemption instructions received by telephone.

Additional documentation may be required by Goldman Sachs in order to estab-
lish that a redemption request has been properly authorized. A redemption re-
quest will not be considered to have been received in proper form until such
additional documentation has been submitted to Goldman Sachs. The payment of
redemption proceeds for FST Shares recently purchased by check will be delayed
for up to 15 days until the check has cleared.

PAYMENT OF REDEMPTION PROCEEDS AND DIVIDENDS

In accordance with the following, redemption proceeds will be wired to the
bank account designated on the FST Shareholder's Account Information Form.

- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
REDEMPTION REQUEST RECEIVED REDEMPTION PROCEEDS
BY GOLDMAN SACHS ORDINARILY DIVIDENDS
- --------------------------- ------------------- ---------
<S> <C> <C>
(1) In the case of Taxable Funds:
By: 3:00 p.m.--N.Y. time Wired Same Business Day Not earned on Day request is
received
- ---------------------------------------------------------------------------------------
After: 3:00 p.m.--N.Y. time Wired Next Business Day Earned on Day request is
received
- ---------------------------------------------------------------------------------------
(2) In the case of the Tax-Free Fund and Municipal Fund:
By: 12:00 noon--N.Y. time Wired Same Business Day Not earned on Day request is
received
- ---------------------------------------------------------------------------------------
After: 12:00 noon--N.Y. time Wired Next Business Day Earned on Day request is
received
- ---------------------------------------------------------------------------------------
</TABLE>

After a wire has been initiated by Goldman Sachs, neither Goldman Sachs nor
the Trust assumes any further responsibility for the performance of intermedi-
aries or the FST Shareholder's bank in the transfer process. If a problem with
such performance arises, the FST Shareholder should deal directly with such
intermediaries or bank.

An FST Shareholder may change the bank designated to receive redemption pro-
ceeds by providing a written notice to Goldman Sachs which has been signed by
the FST Shareholder or its authorized representative. This signature must be
guaranteed by a bank, a securities broker or dealer, a credit union having au-
thority to issue signature guarantees, a savings and loan association, a
building and loan association, a cooperative bank, a federal savings bank or
association, a national securities exchange, a registered securities associa-
tion or a clearing agency, provided that such institution satisfies the stan-
dards established by Goldman Sachs. Goldman Sachs may also require additional
documentation in connection with a request to change the designated bank.

29
<PAGE>

OTHER REDEMPTION INFORMATION

A minimum account balance of $50 million in a Fund ($10 million if an in-
vestor satisfies the minimum initial investment in any other Fund) is required
to remain a FST Shareholder. A Fund may redeem all of the FST Shares of any FST
Shareholder whose account in that Fund has a net asset value which is less than
the minimum described above. The Trust will give sixty (60) days' prior written
notice to such shareholders whose FST Shares are being redeemed to allow them
to purchase sufficient additional FST Shares of the Fund to avoid such redemp-
tion.

----------------

30
<PAGE>

APPENDIX A

GUIDELINES FOR CERTIFICATION OF TAXPAYER
IDENTIFICATION NUMBER ON ACCOUNT INFORMATION FORM

You are required by law to provide the Fund in which you invest with your
correct Social Security or other Taxpayer Identification Number (TIN), regard-
less of whether you file tax returns. Failure to do so may subject you to pen-
alties. Failure to provide your correct TIN in Section C and to sign your name
on the line provided in that Section of the Account Information Form could re-
sult in withholding of 31% by the Fund for the federal backup withholding tax
on distributions, redemptions, exchanges and other payments relating to your
account. However, distributions will not be subject to back-up withholding if
the Fund reasonably estimates that at least 95% of its distributions will be
exempt-interest dividends, and redemptions and exchanges will not be subject to
backup withholding if the Fund successfully maintains a constant $1.00 net as-
set value per Share. The Fund reserves the right to refuse to open an account
for, or to close the account of, any investor who fails to (1) provide a TIN,
or (2) certify that such TIN is correct (if required to do so under applicable
law) in establishing an account.

Any tax withheld may be credited against taxes owed on your federal income
tax return.

Special rules apply for certain entities. For example, for an account estab-
lished under a Uniform Gifts or Transfers to Minors Act, the TIN of the minor
should be furnished.

If you do not have a TIN, you should apply for one immediately by contacting
your local office of the Social Security Administration or the Internal Revenue
Service (IRS). If you do not have a TIN but have applied for or intend to apply
for one, you should write "Applied for" in the space for a TIN in Section C. In
this event, you should provide your TIN and required certifications within 60
days. If you do not provide your TIN and required certifications within 60
days, 31% withholding may apply. Backup withholding could apply to payments re-
lating to your account prior to the Fund's receipt of your TIN and required
certifications.

If you have been notified by the IRS that you are subject to backup withhold-
ing because you failed to report all your interest and/or dividend income on
your tax return and you have not been notified by the IRS that such withholding
should cease, you must cross out item (2) in Section C.

If you are an exempt recipient, you should furnish your TIN in Section C, un-
derline the word "exempt" and sign on the line provided in that Section. Exempt
recipients include: corporations, tax-exempt pension plans and IRA's, govern-
mental agencies, financial institutions, registered securities and commodities
dealers and others.

If you are a nonresident alien or foreign entity, check the "No" box in Sec-
tion A and provide a completed Form W-8 to the Fund in order to avoid backup
withholding on certain payments. Other payments to you may be subject to non-
resident alien withholding of up to 30%.

For further information regarding backup and nonresident alien withholding,
see Sections 3406, 1441 and 1442 of the Internal Revenue Code and consult your
tax adviser.

A-1
<PAGE>

GOLDMAN SACHS MUTUAL FUNDS--ACCOUNT INFORMATION FORM
This Account Information Form Should be Forwarded Promptly to Goldman, Sachs &
Co.
No Redemption Can be Made Prior to Its Receipt

Send to: Goldman Sachs Mutual Funds Master No. _________________
4900 Sears Tower Fund Use Only
Chicago, IL 60606

1-800-621-2550 Date: ______________________

FINANCIAL SQUARE FUNDS [_] GS - Adjustable Rate Government
[_] Financial Square Prime Obligations Agency Fund
Fund [_] GS - Short-Term Government Agency
[_] Financial Square Money Market Fund Fund
[_] Financial Square Treasury [_] GS - Short Duration Tax-Free Fund
Obligations Fund [_] GS - Core Fixed Income Fund
[_] Financial Square Government Fund [_] The Goldman Sachs Portfolios
[_] Financial Square Tax-Free Money Fill in Funds(s): ________________
Market Fund [_] Other
[_] Other Fill in Fund(s): _________________
Fill in Fund(s): __________________

A. ACCOUNT RECORD
- -------------------------------------------------------------------------------

- --------------------------------------- ---------------------------------------
Name of Account Telephone Number

- ---------------------------------------
Street or P.O. Box U.S. Citizen or Resident? Yes [_] No [_]

- ---------------------------------------
City State Zip If no is checked, fill in country of
tax residence:

- --------------------------------------- ---------------------------------------
Attention

B. DIVIDENDS AND DISTRIBUTIONS--Check appropriate box (see "Dividends" in Pro-
spectus)
- -------------------------------------------------------------------------------
Dividends (including net short-term capital gains) [_] Cash [_] Shares

Net Long-Term Capital Gains Distributions [_] Cash [_] Shares

Dividends and capital gains reinvested in another
fund in the Goldman Sachs Portfolios (see
Prospectus for more information) [_] Shares
Fill in Fund(s): _______________________
(If no box is checked, dividends and capital gains distributions will be rein-
vested in the account.)

C. SOCIAL SECURITY NUMBER OR OTHER TAXPAYER IDENTIFICATION NUMBER CERTIFICATION
- -------------------------------------------------------------------------------
Taxpayer Identification Number: __________________
Under penalties of perjury, I certify that (1) The number shown on this form
is my correct Taxpayer Identification Number (or I am waiting for a number to
be issued to me), and (2) I am not subject to backup withholding because I am
exempt from backup withholding or I have not been notified by the Internal
Revenue Service (IRS) that I am subject to backup withholding as a result of a
failure to report all interest or dividends, or the IRS has notified me that I
am no longer subject to backup withholding. See the "Guidelines for Certifica-
tion of Taxpayer Identification Number on Account Information Form," contained
in the Appendix to the accompanying Prospectus.

------------------------------- ---------------------------------------
SIGN Signature Name (print) and Title (if any)
HERE
------------------------------- ---------------------------------------
Date

D. OPTIONAL TELEPHONE EXCHANGE (see "Exchange Privilege" in Prospectus)
- -------------------------------------------------------------------------------

[_] Goldman, Sachs & Co. is hereby authorized to except and act upon telephone
instructions from the undersigned or any other person for the exchange of
shares of the Fund into any fund described in the accompanying Prospectus.
The undersigned understands and agrees that neither the applicable Fund nor
Goldman, Sachs & Co. will be liable for any loss, expense, or cost arising
out of any telephone request.

E. REDEMPTION PLANS--Check one box only (see "Redemption of Shares" in
Prospectus)
- -------------------------------------------------------------------------------
[_] I authorize GOLDMAN, SACHS & CO. to honor telephone, telegraphic, or other
instructions WITHOUT SIGNATURE GUARANTEE, from any person for the redemption
of shares for the above account provided that the proceeds are transmitted
to the following bank account(s) only. I understand any changes to the fol-
lowing information must be made in writing to GOLDMAN, SACHS & CO., must
contain the appropriate number of signatures listed below and all signatures
MUST BE SIGNATURE GUARANTEED. Absent its own gross negligence, neither the
applicable Fund nor GOLDMAN, SACHS & CO. shall be liable for such redemp-
tions or for payments made to any unauthorized account.

Continued on next page
<PAGE>

[_] I have furnished GOLDMAN, SACHS & CO., WITH A SIGNATURE GUARANTEE (See sec-
tion F). I authorize GOLDMAN, SACHS & CO. to honor telephone, telegraphic,
or other instructions from any person for the redemption of shares for the
above account provided that the proceeds are transmitted to the following
bank account(s) only. Any changes to the following information must be made
in writing to GOLDMAN, SACHS & CO., (but without signature guarantee) and
contain the appropriate number of signatures listed below. Absent its own
gross negligence, neither the applicable Fund nor GOLDMAN, SACHS & CO. shall
be liable for such redemptions or fee payments made to any unauthorized ac-
count.

Please complete the following bank account information and place a line
through the unused portion.
Additional instructions may be added on separate pages, if necessary.

Number of Bank Account Destinations completed in Section E of this form: [_]

1) ____________________________________ 3) ____________________________________
Bank Name Bank Routing No. Bank Name Bank Routing No.

------------------------------------- ---------------------------------------
Street Address Street Address

------------------------------------- ---------------------------------------
CityStateZip CityStateZip

------------------------------------- ---------------------------------------
Account Name Account No. Account Name Account No.

2) ____________________________________ 4) ____________________________________
Bank Name Bank Routing No. Bank Name Bank Routing No.

------------------------------------- ---------------------------------------
Street Address Street Address

------------------------------------- ---------------------------------------
CityStateZip CityStateZip

------------------------------------- ---------------------------------------
Account Name Account No. Account Name Account No.

If additional Bank Account Destinations are needed please attach on a separate
sheet.

[_] Special Draft (Transfer Agent to Supply) [_] By Mail

F. SIGNATURE AUTHORIZATION
- -------------------------------------------------------------------------------

By the execution of this Account Information Form, the undersigned represents
and warrants that it has full right power and authority to make the investment
applied for pursuant to this application and is seeing for itself or in some
fiduciary capacity in making such investment, and the individual(s) signing on
behalf of the undersigned represent and warrant that they are duly authorized
to sign this application and to purchase and redeem Fund shares on behalf of
the undersigned. THE UNDERSIGNED AFFIRMS THAT IT HAS RECEIVED AND REVIEWED A
CURRENT FUND PROSPECTUS.

The undersigned understands that a lesser degree of flexibility concerning the
precise timing of a redemption of its investment in the GS Adjustable Rate
Government Agency Fund, GS Core Fixed Income Fund, GS Short-Term Government
Agency Fund or GS Short Duration Tax-Free Fund, as well as all other non-money
market funds, increases the likelihood that the shareholder will be required
to redeem shares under unfavorable market conditions. If shares are redeemed
at a disadvantageous time, the value of the Fund's shares upon redemption may
be less than the price at which the Fund's shares were purchased. Since none
of the Funds listed in this paragraph is a money market fund or maintains a
constant net asset value per share, the undersigned may experience a loss of
principal on its investments in any such Fund during any particular period.

Number of Signatures required to make changes to this form. [_]

G. SIGNATURE GUARANTEE
- -------------------------------------------------------------------------------

- ----------------------------------- Affix Guarantee Stamp Here
Signature Guaranteed By

- -----------------------------------
Authorized Signature
<PAGE>

GOLDMAN SACHS MONEY MARKET TRUST
FINANCIAL SQUARE FUNDS
FST ADMINISTRATION SHARES
4900 Sears Tower
Chicago, Illinois 60606

Goldman Sachs Money Market Trust (the "Trust") is a no-load, open-end, man-
agement investment company (a "mutual fund") which includes the Financial
Square Funds (the "Funds"). This Prospectus relates only to the offering of
FST Administration units of beneficial interest ("FST Administration Shares")
of the Funds. Goldman Sachs Asset Management, a separate operating division of
Goldman, Sachs & Co., serves as each Fund's investment adviser and administra-
tor. Goldman, Sachs & Co. serves as each Fund's distributor and transfer
agent.

Financial Square Treasury Obligations Fund. Securities issued or guaranteed
by the U.S. Treasury and repurchase agreements relating to such securities.

Financial Square Government Fund. Securities of the U.S. Government, its
agencies, authorities, and instrumentalities, and repurchase agreements relat-
ing to such securities.

AN INVESTMENT IN A FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOV-
ERNMENT AND THERE CAN BE NO ASSURANCE THAT A FUND WILL BE ABLE TO MAINTAIN A
STABLE NET ASSET VALUE OF $1.00 PER SHARE.

- -------------------------------------------------------------------------------

ADDITIONAL INFORMATION........Goldman Sachs Mutual Funds-Toll Free: 800-621-2550

This Prospectus provides you with information about the Funds that you should
know before investing in FST Administration Shares. It should be read and re-
tained for future reference. If you would like more detailed information, the
Statement of Additional Information dated March 15, 1995, as amended or sup-
plemented from time to time, is available upon request without charge from in-
stitutions ("Service Organizations") that hold, directly or through an agent,
FST Administration Shares for the benefit of their customers, by calling the
telephone number listed above or by writing Goldman, Sachs & Co., 4900 Sears
Tower, Chicago, Illinois 60606. The Statement of Additional Information, which
is incorporated by reference into this Prospectus, has been filed with the Se-
curities and Exchange Commission. Not all Funds are available in certain
states. Please call the phone number listed above to determine availability in
your state.

- -------------------------------------------------------------------------------

FST ADMINISTRATION SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, ANY BANK OR OTHER INSURED DEPOSITORY INSTITUTION,
AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN A FUND INVOLVES
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL.

The date of this Prospectus is March 15, 1995
<PAGE>

TABLE OF CONTENTS

PAGE
----
Shareholder and Fund Expenses............................................. 3
Financial Highlights...................................................... 5
An Introduction to the Funds.............................................. 11
Investment Objective and Policies of Financial Square Prime Obligations
Fund..................................................................... 12
Investment Objective and Policies of Financial Square Money Market Fund... 12
Investment Objective and Policies of Financial Square Treasury Obligations
Fund..................................................................... 13
Investment Objective and Policies of Financial Square Government Fund..... 14
Investment Objective and Policies of Financial Square Tax-Free Money
Market Fund.............................................................. 14
Investment Objective and Policies of Financial Square Municipal Money
Market Fund.............................................................. 14
Description of Securities and Investment Techniques....................... 15
Investment Limitations.................................................... 19
Management................................................................ 20
Taxes..................................................................... 21
Net Asset Value........................................................... 23
Yield Information......................................................... 23
Organization and Shares of the Trust...................................... 24
Administration............................................................ 26
Purchase of Shares........................................................ 26
Reports to Shareholders................................................... 28
Distributions............................................................. 28
Exchanges................................................................. 29
Redemption of Shares...................................................... 29

2
<PAGE>

SHAREHOLDER AND FUND EXPENSES (NOTE 1)
FST ADMINISTRATION SHARES (NOTE 2)

<TABLE>
<CAPTION>
FINANCIAL FINANCIAL
FINANCIAL FINANCIAL FINANCIAL SQUARE SQUARE
SQUARE SQUARE SQUARE FINANCIAL TAX-FREE MUNCICIPAL
PRIME MONEY TREASURY SQUARE MONEY MONEY
OBLIGATIONS MARKET OBLIGATIONS GOVERNMENT MARKET MARKET
FUND FUND FUND FUND FUND FUND
----------- --------- ----------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Charge
Imposed on Purchases. None None None None None None
Sales Charge Imposed
on Reinvested
Distributions........ None None None None None None
Deferred Sales Load
Imposed on
Redemptions.......... None None None None None None
Exchange Fee.......... None None None None None None
ANNUAL OPERATING
EXPENSES
(as a percentage of
average daily net
assets after
adjustments)
Management Fees (after
fee adjustments)
(Note 3)............. 0.04% 0.04% 0.04% 0.04% 0.04% 0.04%
Other Expenses (after
expense limitation)
(Note 3)
Account
Administration
Fees............... 0.13% 0.13% 0.13% 0.13% 0.13% 0.13%
Administration Fees
(Note 4)........... 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Other Expenses...... 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
---- ---- ---- ---- ---- ----
TOTAL OPERATING EXPENSES
(Note 3)............... 0.43% 0.43% 0.43% 0.43% 0.43% 0.43%
==== ==== ==== ==== ==== ====
</TABLE>

EXAMPLE OF EXPENSES
You would pay the following expenses on a hypothetical $1,000 investment, as-
suming a 5% annual return and redemption at the end of each time period:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
Financial Square Prime Obligations Fund... $ 4 $14 $24 $54
Financial Square Money Market Fund........ $ 4 $14 N/A N/A
Financial Square Treasury Obligations
Fund..................................... $ 4 $14 $24 $54
Financial Square Government Fund.......... $ 4 $14 $24 $54
Financial Square Tax-Free Money Market
Fund..................................... $ 4 $14 N/A N/A
Financial Square Municipal Money Market
Fund..................................... $ 4 $14 N/A N/A
</TABLE>

3
<PAGE>

- --------
Notes:
(1) The purpose of this table is to assist investors in understanding the vari-
ous costs and expenses that an investment in the Funds will bear directly
or indirectly. Operating expenses for Financial Square Money Market Fund,
Financial Square Government Fund, Financial Square Tax-Free Money Market
Fund and Financial Square Municipal Money Market Fund are based on esti-
mates of expenses expected to be incurred during the fiscal year ended De-
cember 31, 1995. With respect to the other Funds, the costs and expenses
included in the table and hypothetical example are based on actual amounts
incurred for the fiscal year ended December 31, 1994. The table and hypo-
thetical example should not be considered a representation of past or fu-
ture expenses; actual expenses may vary depending upon a variety of factors
including the actual performance of each Fund, which may be greater or less
than 5%. Annual operating expenses incurred by Financial Square Government
Fund during the fiscal year ended December 31, 1994 (expressed as a per-
centage of average daily net assets after fee adjustments and expense limi-
tations) were as follows: Management Fees, Administration Fees and Other
Expenses of 0.03%, 0.25% and 0.12%, respectively, for total operating ex-
penses of 0.40%. See "Management."

(2) The information set forth in the foregoing table and example relates only
to FST Administration Shares of the Funds. FST Shares and FST Service
Shares are subject to different fees and expenses. See "Organization and
Shares of the Trust." FST Shares are not subject to any administration or
service fees. FST Service Shares are subject to a service fee of up to .50%
of average daily net assets. All other expenses related to FST Shares and
FST Service Shares are the same as for FST Administration Shares.

(3) Goldman Sachs Asset Management (the "Adviser" or "GSAM") has agreed that a
portion of its fees will not be imposed, pursuant to applicable contracts.
In addition, the Adviser has agreed to reduce or otherwise limit certain
expenses of each Fund (excluding fees payable to Service Organizations, as
defined herein, management and account administration fees, taxes, inter-
est, brokerage and litigation, indemnification and other extraordinary ex-
penses), on an annualized basis, to .01% of such Fund's average daily net
assets. Had the reduction of fees otherwise payable and expense limitations
not been reflected in the above table, the management fees payable by each
Fund would be 0.075% of average daily net assets, and the amount of other
expenses payable by Financial Square Prime Obligations Fund, Financial
Square Money Market Fund, Financial Square Treasury Obligations Fund, Fi-
nancial Square Government Fund, Financial Square Tax-Free Money Market Fund
and Financial Square Municipal Money Market Fund, would be 0.035%, 0.045%,
0.045%, 0.045%, 0.105% and 0.29%, respectively, of average daily net as-
sets. Had the reduction of fees otherwise payable and expense limitations
not been reflected in the above table, the annual operating expenses of Fi-
nancial Square Prime Obligations Fund, Financial Square Money Market Fund,
Financial Square Treasury Obligations Fund, Financial Square Government
Fund, Financial Square Tax-Free Money Market Fund and Financial Square Mu-
nicipal Money Market Fund would be 0.49%, 0.50%, 0.50%, 0.50%, 0.56% and
0.745%, respectively, of average daily net assets.

(4) Service Organizations (other than broker-dealers) may charge other fees to
their customers who are the beneficial owners of FST Administration Shares
in connection with their customers' accounts. See "Administration." Such
fees, if any, may affect the return such customers realize with respect to
their investments.

4
<PAGE>

FINANCIAL HIGHLIGHTS

Financial Square Municipal Money Market Fund had no operations during the
fiscal year ended December 31, 1994. Accordingly, there are no select per share
data and ratios presented for this Fund.

5
<PAGE>

6
<PAGE>

- -------------------------------------------------------------------------------

7
<PAGE>

- -------------------------------------------------------------------------------

8
<PAGE>

- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS
------------------------------------
RATIO OF NET
NET ASSET NET REALIZED TOTAL NET ASSET RATIO OF NET INVESTMENT
VALUE AT NET GAIN INCOME FROM DISTRIBUTIONS VALUE AT EXPENSES TO INCOME TO
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT TO END TOTAL AVERAGE NET AVERAGE NET
OF PERIOD INCOME TRANSACTIONS OPERATIONS SHAREHOLDERS OF PERIOD RETURN(a) ASSETS ASSETS
--------- ---------- ------------- ----------- ------------- --------- --------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FOR THE PERIOD ENDED DECEMBER 31,
1994 FST
shares(d)....... $1.00 $0.0424 $0.0000 $0.0424 $(0.0424) $1.00 4.36%(b) 0.15%(b) 4.64%(b)
1994 FST Admin-
istration
shares(d)....... 1.00 0.0426 0.0000 0.0426 (0.0426) 1.00 4.10(b) 0.40(b) 4.67(b)
FOR THE PERIOD ENDED JANUARY 31,
1993-FST
shares(c)....... 1.00 0.0256 0.0001 0.0257 (0.0257) 1.00 3.14(b) 0.08(b) 3.10(b)
1993-FST Admin-
istration
shares(c)....... 1.00 0.0120 0.0001 0.0121 (0.0121) 1.00 2.87(b) 0.35(b) 2.85(b)
<CAPTION>
RATIOS ASSUMING NO
WAIVER OF FEES AND NO
EXPENSE LIMITATIONS
-------------------------
NET
ASSETS AT RATIO OF NET
END RATIO OF INVESTMENT
OF PERIOD EXPENSES TO INCOME TO
(IN AVERAGE NET AVERAGE NET
000'S) ASSETS ASSETS
--------- ------------ ------------
<S> <C> <C> <C>
FOR THE PERIOD ENDED DECEMBER 31,
1994 FST
shares(d)....... $258,350 0.25%(b) 4.54%(b)
1994 FST Admin-
istration
shares(d)....... 54,253 0.50(b) 4.57(b)
FOR THE PERIOD ENDED JANUARY 31,
1993-FST
shares(c)....... 44,697 0.59(b) 2.59(b)
1993-FST Admin-
istration
shares(c)....... 14,126 0.76(b) 2.44(b)
</TABLE>
- ----
(a) Assumes investment at the net asset value at the beginning of the period,
reinvestment of all distributions and a complete redemption of the invest-
ment at the net asset value at the end of the period.
(b) Annualized.
(c) FST share and FST Administration share activity commenced April 6, 1993
and September 1, 1993, respectively.
(d) The information presented above reflects eleven months of operations due
to a change in fiscal year end. This change was caused by the reorganiza-
tion of the funds as a series of Goldman Sachs Money Market Trust.

9
<PAGE>

- -------------------------------------------------------------------------------

10
<PAGE>

AN INTRODUCTION TO THE FUNDS

11
<PAGE>

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE PRIME OBLIGATIONS FUND

(A) securities issued or guaranteed as to principal and interest by the
U.S. Government, its agencies, authorities and instrumentalities ("U.S.
Government Securities");

(C) commercial paper (including variable amount master demand notes and as-
set-backed commercial paper) issued or guaranteed by U.S. corporations,
U.S. commercial banks, or other entities;

(D) unrated notes, paper or other instruments which are determined to be of
comparable high quality by the Adviser pursuant to criteria approved by
the Trustees;

(E) other short-term obligations issued or guaranteed by U.S. corporations,
or other entities (including short-term funding agreements);

(G) repurchase agreements.

Prime Obligations Fund may acquire any of the above securities on a forward
commitment or when-issued basis.

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE MONEY MARKET FUND

(A) U.S. Government Securities;

12
<PAGE>

(E) unrated notes, paper or other instruments which are determined to be of
comparable high quality by the Adviser pursuant to criteria approved by
the Trustees;

(F) other short-term obligations issued or guaranteed by U.S. corporations,
foreign corporations or other entities, payable in U.S. dollars (in-
cluding short-term funding agreements);

(H) U.S. dollar denominated obligations of the International Bank for Re-
construction and Development;

(J) asset-backed securities (including interests in pools of assets such as
motor vehicle installment purchase obligations and credit card receiv-
ables); and

(K) repurchase agreements.

Money Market Fund may acquire any of the above securities on a forward com-
mitment or when-issued basis.

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE TREASURY OBLIGATIONS FUND

13
<PAGE>

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE GOVERNMENT FUND

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE TAX-FREE MONEY MARKET
FUND

(A) fixed rate notes and similar debt instruments rated in the highest
short-term rating category or in one of the two highest long-term rat-
ing categories of at least one NRSRO;

(D) unrated notes, paper or other instruments which are determined to be of
comparable high quality by the Adviser pursuant to criteria approved by
the Trustees; and

Tax-Free Fund may acquire any of the above securities on a forward commitment
or when-issued basis.

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE MUNICIPAL MONEY MARKET
FUND

14
<PAGE>

purposes (but not necessarily exempt from federal alternative minimum tax or
state and local taxes). Such Municipal Instruments may include:

(A) fixed rate notes and similar debt instruments rated in the highest
short-term rating category or in one of the two highest long-term rat-
ing categories of at least one NRSRO;

(D) unrated notes, paper or other instruments which are determined to be of
comparable high quality by the Adviser pursuant to criteria approved by
the Trustees; and

Municipal Fund may acquire any of the above securities on a forward commit-
ment or when-issued basis.

DESCRIPTION OF SECURITIES AND INVESTMENT TECHNIQUES

U.S. GOVERNMENT SECURITIES

15
<PAGE>

CUSTODIAL RECEIPTS

MUNICIPAL INSTRUMENTS

16
<PAGE>

financial institution at a purchase price equal to par plus accrued interest on
each interest rate reset date.

In order to enhance the liquidity, stability, or quality of a Municipal In-
strument, each Fund (other than Treasury Obligations Fund and Government Fund)
may acquire the right to sell the

17
<PAGE>

security to another party at a guaranteed price and date. These rights may be
referred to as puts, demand features, or standby commitments.

REPURCHASE AGREEMENTS

FORWARD COMMITMENTS AND WHEN-ISSUED SECURITIES

OTHER INVESTMENT COMPANIES

18
<PAGE>

INVESTMENT LIMITATIONS

INVESTMENT RESTRICTIONS

19
<PAGE>

RESTRICTED AND OTHER ILLIQUID SECURITIES

MANAGEMENT

THE ADVISER AND ADMINISTRATOR

20
<PAGE>

THE DISTRIBUTOR AND TRANSFER AGENT

TAXES

21
<PAGE>

or excise tax on any net investment income and net realized capital gains that
are distributed to its shareholders in accordance with certain timing require-
ments of the Code.

22
<PAGE>

states that certain thresholds for holdings of such obligations and/or report-
ing requirements are satisfied. Shareholders should consult their own tax ad-
visers concerning these matters.

NET ASSET VALUE

YIELD INFORMATION

23
<PAGE>

ORGANIZATION AND SHARES OF THE TRUST

As of February 24, 1995, Commerce Bank of Kansas City NA owned beneficially
35.20% of the outstanding shares of Financial Square Tax-Free Money Market
Fund.

24
<PAGE>

relating to that Fund and any changes in fundamental investment restrictions or
policies of such Fund. Approval by the shareholders of one Fund is effective
only as to that Fund.

25
<PAGE>

ADMINISTRATION

Each Fund has adopted an Administration Plan with respect to the FST Adminis-
tration Shares which authorizes it to compensate Service Organizations for pro-
viding account administration services to their customers who are beneficial
owners of such Shares. Each Fund will enter into agreements with Service Orga-
nizations which purchase FST Administration Shares on behalf of their customers
("Service Agreements"). The Service Agreements will provide for compensation to
the Service Organization in an amount up to .25 of 1% (on an annualized basis)
of the average daily net asset value of the FST Administration Shares of that
Fund attributable to or held in the name of the Service Organization for its
customers. The services provided by a Service Organization may include acting,
directly or through an agent, as the sole shareholder of record, maintaining
account records for its customers, and processing orders to purchase and redeem
FST Administration Shares for its customers.

For the fiscal year ended December 31, 1994, the Trust, on behalf of the
Prime Obligations Fund, Money Market Fund, Treasury Obligations Fund, Govern-
ment Fund, and Tax-Free Fund, paid Service Organizations fees at the annual
rate of .25% of each Fund's average daily net assets attributable to FST Admin-
istration Shares.

Holders of FST Administration Shares of a Fund will bear all expenses and
fees paid to Service Organizations with respect to such Shares as well as any
other expenses which are directly attributable to such Shares.

Service Organizations (other than broker-dealers) may charge other fees to
their customers who are the beneficial owners of FST Administration Shares in
connection with their customer accounts. These fees would be in addition to any
amounts received by the Service Organization under a Service Agreement and may
affect an investor's return with respect to an investment in a Fund.

All inquiries of beneficial owners of FST Administration Shares of the Funds
should be directed to such owners' Service Organization.

PURCHASE OF SHARES

It is expected that all direct purchasers of FST Administration Shares will
be Service Organizations or their nominees, which may purchase FST Administra-
tion Shares of the Funds through Goldman Sachs. Customers of Service Organiza-
tions may invest in such shares only through their Service Organizations.

As set forth below, FST Administration Shares of the Funds may be purchased
on any Business Day at the net asset value next determined after receipt from
the Service Organization of both the purchase order and the purchase price in
Federal Funds. Purchase orders may be made by telephoning Goldman Sachs at 800-
621-2550 or by a written request addressed to Goldman Sachs, Attention: Share-
holder Services, Goldman Sachs Money Market Trust, 4900 Sears Tower, Chicago,
Illinois 60606. It is strongly recommended that payment be effected by wiring
Federal Funds to The Northern Trust Company ("Northern"), Chicago, Illinois, as
the sub-custodian for State Street Bank and Trust Company ("State Street").

Purchases of FST Administration Shares may also be made by a Service Organi-
zation by delivering a Federal Reserve draft or check payable to the appropri-
ate Fund and drawn on a U.S. bank to Goldman Sachs, Attention: Shareholder
Services, Goldman Sachs Money Market Trust, 4900 Sears Tower, Chicago, Illinois
60606. It is expected that Federal Reserve drafts will ordinarily be converted
to Federal Funds on the day of receipt and that checks will be converted to
Federal Funds within two Business Days after receipt. FST Administration Shares
purchased by check may not be redeemed until the check has cleared, as de-
scribed under "Redemption of Shares."

26
<PAGE>

- --------------------------------------------------------------------------------
FST Administration Shares of the Prime Obligations Fund, Money Market Fund
and Treasury Obligations Fund are deemed to have been purchased when an order
becomes effective and are entitled to dividends on FST Administration Shares
purchased as follows:

<TABLE>
<CAPTION>
IF ORDER IS RECEIVED FROM A SERVICE
ORGANIZATION BY GOLDMAN SACHS DIVIDENDS BEGIN
----------------------------------- ---------------
<C> <S> <C>
By: 3:00 p.m.--N.Y. time Same Business Day
- -------------------------------------------------------------------------------
After: 3:00 p.m.--N.Y. time Next Business Day
- -------------------------------------------------------------------------------

FST Administration Shares of the Government Fund are deemed to have been pur-
chased when an order becomes effective and are entitled to dividends on FST Ad-
ministration Shares purchased as follows:

<CAPTION>
IF ORDER IS RECEIVED FROM A SERVICE
ORGANIZATION BY GOLDMAN SACHS DIVIDENDS BEGIN
----------------------------------- ---------------
<C> <S> <C>
By: 5:00 p.m.--N.Y. time Same Business Day
- -------------------------------------------------------------------------------
After: 5:00 p.m.--N.Y. time Next Business Day
- -------------------------------------------------------------------------------

FST Administration Shares of the Tax-Free Fund and Municipal Fund are deemed
to have been purchased when an order becomes effective and are entitled to div-
idends on FST Administration Shares purchased as follows:

<CAPTION>
IF ORDER IS RECEIVED FROM A SERVICE
ORGANIZATION BY GOLDMAN SACHS DIVIDENDS BEGIN
----------------------------------- ---------------
<C> <S> <C>
By: 1:00 p.m.--N.Y. time Same Business Day
- -------------------------------------------------------------------------------
After: 1:00 p.m.--N.Y. time Next Business Day
- -------------------------------------------------------------------------------
</TABLE>

A Business Day means any day on which the New York Stock Exchange is open,
except for days on which Chicago, Boston or New York banks are closed for local
holidays.

FST Administration Shares of a Fund are purchased at the net asset value per
share without the imposition of a sales charge.

Goldman Sachs, as each Fund's transfer agent, will maintain a complete record
of transactions and FST Administration Shares held in each record holder's ac-
count.

The Trust and Goldman Sachs each reserves the right to reject any purchase
order for any reason.

MINIMUM INVESTMENT AND OTHER INFORMATION

The minimum requirement for investing in a Fund is $50 million ($10 million
if an investor sat-

27
<PAGE>

isfies the minimum initial investment in any other Fund). The Trust and Goldman
Sachs each reserves the right to waive the minimum investment requirement. A
Service Organization may impose a minimum amount for initial and subsequent in-
vestments in FST Administration Shares of the Funds, and may establish other
requirements such as a minimum account balance. A Service Organization may ef-
fect redemptions of noncomplying accounts, and may impose a charge for any spe-
cial services rendered to its customers. Customers should contact their Service
Organizations for further information concerning such requirements and charges.
A Service Organization may purchase FST Administration Shares in connection
with sweep account programs.

SUBSEQUENT INVESTMENTS

There is no minimum amount required for subsequent investments. Orders for
the purchase of additional FST Administration Shares should be accompanied by
information identifying the account in which FST Administration Shares are to
be purchased.

REPORTS TO SHAREHOLDERS

The Trust will issue an annual report containing audited financial statements
and a semi-annual report to record holders of FST Administration Shares of each
Fund, including Service Organizations who hold such Shares for the benefit of
their customers. Upon request, a printed confirmation for each transaction will
be provided by Goldman Sachs. Any dividends and distributions paid by the Funds
are also reflected in regular statements issued by Goldman Sachs to sharehold-
ers of record. The Service Organizations, as record holders of FST Administra-
tion Shares, will be responsible for providing similar services to their own
customers who are the beneficial owners of such Shares. For example, Service
Organizations are responsible for providing each customer exercising investment
discretion with monthly statements with respect to such customer's account in
lieu of an immediate confirmation of each transaction.

DISTRIBUTIONS

All or substantially all of each Fund's net investment income will be de-
clared daily (as of 4:00 p.m. New York Time for each Fund other than Government
Fund and as of 5:00 p.m. New York time for Government Fund) as a dividend and
distributed to Service Organizations, as record owners of FST Administration
Shares, monthly. Distributions will be made in additional FST Administration
Shares of the same Fund or, at the election of a Service Organization, in cash.
The election to reinvest dividends and distributions or receive them in cash
may be changed by a Service Organization at any time upon written notice to
Goldman Sachs. If no election is made, all dividends and capital gain distribu-
tions will be reinvested. Dividends will be reinvested as of the last calendar
day of each month. Cash distributions will be paid on or about the first busi-
ness day of each month. Net short-term capital gains, if any, will be distrib-
uted in accordance with the requirements of the Code and may be reflected in
the Fund's daily distributions. Each Fund may distribute at least annually its
long-term capital gains, if any, after reduction by available capital losses.
In order to avoid excessive fluctuations in the amount of monthly capital gains
distributions, a portion of any net capital gains realized on the disposition
of securities during the months of November and December may be distributed
during the subsequent calendar year. Although realized gains and losses on the
assets of a Fund are reflected in the net asset value of the Fund, they are not
expected to be of an amount which would affect the Fund's net asset value of
$1.00 per share.

A Fund's net investment income consists of the excess of (i) accrued interest
or discount (including both original issue and market discount on taxable secu-
rities) on portfolio securities, and (ii) any income of the Fund from sources
other than capital gains over (iii) the amortization of market premium on all
portfolio securities and (iv) the estimated expenses of the Fund, including a
proportionate share of the general expenses of the Trust.

28
<PAGE>

EXCHANGES

FST Administration Shares of each Fund may be exchanged by Service Organiza-
tions for the relevant class of any Fund or Portfolio of Goldman Sachs Money
Market Trust at the net asset value next determined either by writing to
Goldman Sachs, Attention: Shareholder Services, Goldman Sachs Money Market
Trust, 4900 Sears Tower, Chicago, Illinois 60606 or, if previously elected in
the Account Information Form, by calling Goldman Sachs at 800-621-2550. All
telephone exchanges must be registered in the same name(s) and with the same
address as are registered in the Fund from which the exchange is being made. It
may be difficult to implement the telephone exchange privilege in times of
drastic economic or market changes. In an effort to prevent unauthorized or
fraudulent exchange requests by telephone, Goldman Sachs employs reasonable
procedures as set forth under "Redemption of Shares" to confirm that such in-
structions are genuine. Exchanges are available only in states where the ex-
change may legally be made. The exchange privilege may be modified or withdrawn
at any time on 60 days' written notice.

REDEMPTION OF SHARES

HOW TO REDEEM

Customers of Service Organizations may redeem FST Administration Shares of a
Fund through their respective Service Organizations. The Service Organizations
are responsible for the transmittal of redemption requests by their customers
to Goldman Sachs. In order to facilitate timely transmittal of redemption re-
quests, Service Organizations have established procedures by which redemption
requests must be made and times by which redemption requests must be received
by them. Additional documentation may be required when deemed appropriate by a
Service Organization.

A Service Organization as the record holder of FST Administration Shares may
then redeem such Shares without charge upon request on any Business Day at the
net asset value next determined after receipt by Goldman Sachs of the redemp-
tion request. Redemption requests may be made by telephoning Goldman Sachs at
800-621-2550 or by a written request addressed to Goldman Sachs, Attention:
Shareholder Services, Goldman Sachs Money Market Trust, 4900 Sears Tower, Chi-
cago, Illinois 60606. A Service Organization may request redemptions by tele-
phone only if the optional telephone redemption privilege has been elected on
the Account Information Form. It may be difficult to implement redemptions by
telephone in times of drastic economic or market changes.

In an effort to prevent unauthorized or fraudulent redemption requests by
telephone, Goldman Sachs employs reasonable procedures specified by the Trust
to confirm that such instructions are genuine. Among other things, any redemp-
tion request that requires money to go to an account or address other than that
designated on the Account Information Form must be in writing and signed by an
authorized person designated on the Account Information Form. Any such written
request is also confirmed by telephone with both the requesting party and the
designated bank account to verify instructions. Other procedures may be imple-
mented from time to time. If reasonable procedures are not implemented, the
Trust may be liable for any loss due to unauthorized or fraudulent transac-
tions. In all other cases, neither the Trust nor Goldman Sachs will be respon-
sible for the authenticity of redemption instructions received by telephone.

Additional documentation may be required by Goldman Sachs in order to estab-
lish that a redemption request has been properly authorized. A redemption re-
quest will not be considered to have been received in proper form until such
additional documentation has been submitted to Goldman Sachs by the
recordholder of FST Administration Shares. The payment of redemption proceeds
for FST Administration Shares recently purchased by check will be delayed for
up to 15 days until the check has cleared.

29
<PAGE>

PAYMENT OF REDEMPTION PROCEEDS AND DIVIDENDS

In accordance with the following, redemption proceeds will be wired to the
record holder of FST Administration Shares.

- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
REDEMPTION REQUEST
RECEIVED FROM REDEMPTION
SERVICE ORGANIZATION PROCEEDS
BY GOLDMAN SACHS ORDINARILY DIVIDENDS
-------------------- ---------- ---------
<C> <S> <C> <C>
(1) In the case of the Taxable Funds
By: 3:00 p.m.--N.Y. time Wired Same Business Day Not earned on Day
request is received
- -------------------------------------------------------------------------------
After: 3:00 p.m.--N.Y. time Wired Next Business Day Earned on Day
request is received
- -------------------------------------------------------------------------------
(2) In the case of the Tax-Free Fund and Municipal Fund
By: 12:00 noon--N.Y. time Wired Same Business Day Not earned on Day
request is received
- -------------------------------------------------------------------------------
After: 12:00 noon--N.Y. time Wired Next Business Day Earned on Day
request is received
- -------------------------------------------------------------------------------
</TABLE>

After a wire has been initiated by Goldman Sachs, neither Goldman Sachs nor
the Trust assumes any further responsibility for the performance of intermedi-
aries or the FST Administration Shareholder's Service Organization in the
transfer process. If a problem with such performance arises, the FST Adminis-
tration Shareholder should deal directly with such intermediaries or Service
Organization.

OTHER REDEMPTION INFORMATION

A minimum account balance of $50 million in a Fund ($10 million if an in-
vestor satisfies the minimum initial investment in any other Fund) is required
to remain a FST Administration Shareholder. A Fund may redeem all of the FST
Administration Shares of any FST Administration Shareholder whose account in
that Fund has a net asset value which is less than the minimum described above.
The Trust will give sixty (60) days' prior written notice to such Shareholders
whose FST Administration Shares are being redeemed to allow them to purchase
sufficient additional FST Administration Shares of the Fund to avoid such re-
demption.
----------------

30
<PAGE>

GOLDMAN SACHS MONEY MARKET TRUST
FINANCIAL SQUARE FUNDS
FST SERVICE SHARES
4900 Sears Tower
Chicago, Illinois 60606

Goldman Sachs Money Market Trust (the "Trust") is no-load, open-end, manage-
ment investment company (a "mutual fund") which includes the Financial Square
Funds (the "Funds"). This Prospectus relates only to the offering of FST Serv-
ice units of beneficial interest ("FST Service Shares") of the Funds. Goldman
Sachs Asset Management, a separate operating division of Goldman, Sachs & Co.,
serves as each Fund's investment adviser and administrator. Goldman, Sachs &
Co. serves as each Fund's distributor and transfer agent.

Financial Square Treasury Obligations Fund. Securities issued or guaranteed
by the U.S. Treasury and repurchase agreements relating to such securities.

Financial Square Government Fund. Securities of the U.S. Government, its
agencies, authorities, and instrumentalities, and repurchase agreements relat-
ing to such securities.

AN INVESTMENT IN A FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOV-
ERNMENT AND THERE CAN BE NO ASSURANCE THAT A FUND WILL BE ABLE TO MAINTAIN A
STABLE NET ASSET VALUE OF $1.00 PER SHARE.

- -------------------------------------------------------------------------------

ADDITIONAL INFORMATION...... Goldman Sachs Mutual Funds--Toll Free: 800-621-2550

This Prospectus provides you with information about the Funds that you should
know before investing in FST Service Shares. It should be read and retained
for future reference. If you would like more detailed information, the State-
ment of Additional Information dated March 15, 1995, as amended or supple-
mented from time to time, is available upon request without charge from insti-
tutions ("Service Organizations") that hold, directly or through an agent, FST
Service Shares for the benefit of their customers, by calling the telephone
number listed above or by writing Goldman, Sachs & Co., 4900 Sears Tower, Chi-
cago, Illinois 60606. The Statement of Additional Information, which is incor-
porated by reference into this Prospectus, has been filed with the Securities
and Exchange Commission. Not all Funds are available in certain states. Please
call the phone number listed above to determine availability in your state.

- -------------------------------------------------------------------------------

FST SERVICE SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARAN-
TEED OR ENDORSED BY, ANY BANK OR OTHER INSURED DEPOSITORY INSTITUTION, AND ARE
NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE
BOARD OR ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN A FUND INVOLVES INVEST-
MENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL.

The date of this Prospectus is March 15, 1995
<PAGE>

TABLE OF CONTENTS

PAGE
----
Shareholder and Fund Expenses............................................. 3
Financial Highlights...................................................... 5
An Introduction to the Funds.............................................. 11
Investment Objective and Policies of Financial Square Prime Obligations
Fund..................................................................... 12
Investment Objective and Policies of Financial Square Money Market Fund... 12
Investment Objective and Policies of Financial Square Treasury Obligations
Fund..................................................................... 13
Investment Objective and Policies of Financial Square Government Fund..... 14
Investment Objective and Policies of Financial Square Tax-Free Money Mar-
ket Fund................................................................. 14
Investment Objective and Policies of Financial Square Municipal Money Mar-
ket Fund................................................................. 14
Description of Securities and Investment Techniques....................... 15
Investment Limitations.................................................... 19
Management................................................................ 20
Taxes..................................................................... 21
Net Asset Value........................................................... 23
Yield Information......................................................... 23
Organization and Shares of the Trust...................................... 24
Additional Services....................................................... 26
Purchase of Shares........................................................ 26
Reports to Shareholders................................................... 28
Distributions............................................................. 28
Exchanges................................................................. 29
Redemption of Shares...................................................... 29

2
<PAGE>

SHAREHOLDER AND FUND EXPENSES (NOTE 1)
FST SERVICE SHARES (NOTE 2)

<TABLE>
<CAPTION>
FINANCIAL FINANCIAL
FINANCIAL FINANCIAL FINANCIAL SQUARE SQUARE
SQUARE SQUARE SQUARE FINANCIAL TAX-FREE MUNICIPAL
PRIME MONEY TREASURY SQUARE MONEY MONEY
OBLIGATIONS MARKET OBLIGATIONS GOVERNMENT MARKET MARKET
FUND FUND FUND FUND FUND FUND
----------- --------- ----------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Charge
Imposed on Purchases. None None None None None None
Sales Charge Imposed
on Reinvested
Distributions........ None None None None None None
Deferred Sales Load
Imposed on
Redemptions.......... None None None None None None
Exchange Fee.......... None None None None None None
ANNUAL OPERATING
EXPENSES
(as a percentage of
average daily net
assets after
adjustments)
Management Fees (after
fee adjustments)
(Note 3)............. 0.04% 0.04% 0.04% 0.04% 0.04% 0.04%
Other Expenses (after
expense limitation)
(Note 3)
Account
Administration
Fees............... 0.13% 0.13% 0.13% 0.13% 0.13% 0.13%
Service Fees (Note
4)................. 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Other Expenses...... 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
---- ---- ---- ---- ---- ----
TOTAL OPERATING EXPENSES
(Note 3)............... 0.68% 0.68% 0.68% 0.68% 0.68% 0.68%
==== ==== ==== ==== ==== ====
</TABLE>

EXAMPLE OF EXPENSES
You would pay the following expenses on a hypothetical $1,000 investment,
assuming a 5% annual return and redemption at the end of each time period:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
Financial Square Prime Obligations Fund... $ 7 $ 22 $ 38 $ 85
Financial Square Money Market Fund........ $ 7 $ 22 N/A N/A
Financial Square Treasury Obligations
Fund..................................... $ 7 $ 22 $ 38 $ 85
Financial Square Government Fund.......... $ 7 $ 22 $ 38 $ 85
Financial Square Tax-Free Money Market
Fund..................................... $ 7 $ 22 N/A N/A
Financial Square Municipal Money Market
Fund..................................... $ 7 $ 22 N/A N/A
</TABLE>

3
<PAGE>

- --------
Notes:
(1) The purpose of this table is to assist investors in understanding the var-
ious costs and expenses that an investment in the Funds will bear directly
or indirectly. Operating expenses for Financial Square Money Market Fund,
Financial Square Government Fund, Financial Square Tax-Free Money Market
Fund and Financial Square Municipal Money Market Fund are based on esti-
mates of expenses expected to be incurred during the fiscal year ended De-
cember 31, 1995. With respect to the other Funds, the costs and expenses
included in the table and hypothetical example are based on actual amounts
incurred for the fiscal year ended December 31, 1994. The table and hypo-
thetical example should not be considered a representation of past or fu-
ture expenses; actual expenses may vary depending upon a variety of fac-
tors including the actual performance of each Fund, which may be greater
or less than 5%. Annual operating expenses that would have been incurred
by Financial Square Government Fund during the fiscal year ended December
31, 1994 had FST Service Shares been issued (expressed as a percentage of
average daily net assets after fee adjustments and expense limitations)
were as follows: Management Fees, Service Fees and Other Expenses of
0.03%, 0.50% and 0.12%, respectively for total operating expenses of
0.65%. See "Management." Investors should be aware that, due to service
fees, a long-term shareholder in a Fund may pay over time more than the
economic equivalent of the maximum front-end sales charge permitted under
the rules of the National Association of Securities Dealers, Inc.
(2) The information set forth in the foregoing table and example relates only
to FST Service Shares of the Funds. FST Shares and FST Administration
Shares are subject to different fees and expenses. See "Organization and
Shares of the Trust." FST Shares are not subject to any administration or
service fees. FST Administration Shares are subject to an administration
fee of up to .25% of average daily net assets. All other expenses related
to FST Shares and FST Administration Shares are the same as for FST Serv-
ice Shares.
(3) Goldman Sachs Asset Management (the "Adviser" or "GSAM") has agreed that a
portion of its fees will not be imposed, pursuant to applicable contracts.
In addition, the Adviser has agreed to reduce or otherwise limit certain
expenses of each Fund (excluding fees payable to Service Organizations, as
defined herein, management and account administration fees, taxes, inter-
est, brokerage and litigation, indemnification and other extraordinary ex-
penses), on an annualized basis, to .01% of such Fund's average daily net
assets. Had the reduction of fees otherwise payable and expense limita-
tions not been reflected in the above table, the management fees payable
by each Fund would be 0.075% of average daily net assets, and the amount
of other expenses payable by Financial Square Prime Obligations Fund, Fi-
nancial Square Money Market Fund, Financial Square Treasury Obligations
Fund, Financial Square Government Fund, Financial Square Tax-Free Money
Market Fund and Financial Square Municipal Money Market Fund, would be
0.035%, 0.045%, 0.045%, 0.045%, 0.105% and 0.29%, respectively, of average
daily net assets. Had the reduction of fees otherwise payable and expense
limitations not been reflected in the above table, the annual operating
expenses of Financial Square Prime Obligations Fund, Financial Square
Money Market Fund, Financial Square Treasury Obligations Fund, Financial
Square Government Fund, Financial Square Tax-Free Money Market Fund and
Financial Square Municipal Money Market Fund would be 0.74%, 0.75%, 0.75%,
0.75%, 0.81% and .995%, respectively, of average daily net assets.
(4) Service Organizations (other than broker-dealers) may charge other fees to
their customers who are the beneficial owners of FST Service Shares in
connection with their customers' accounts. See "Additional Services." Such
fees, if any, may affect the return such customers realize with respect to
their investments.

4
<PAGE>

FINANCIAL HIGHLIGHTS

Financial Square Municipal Money Market Fund had no operations during the
fiscal year ended December 31, 1994. Accordingly, there are no select per share
data and ratios presented for this Fund.

5
<PAGE>

6
<PAGE>

- -------------------------------------------------------------------------------

7
<PAGE>

- -------------------------------------------------------------------------------

8
<PAGE>

- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS
------------------------------------
RATIO OF NET
NET ASSET NET REALIZED TOTAL NET ASSET RATIO OF NET INVESTMENT
VALUE AT NET GAIN INCOME FROM DISTRIBUTIONS VALUE AT EXPENSES TO INCOME TO
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT TO END TOTAL AVERAGE NET AVERAGE NET
OF PERIOD INCOME TRANSACTIONS OPERATIONS SHAREHOLDERS OF PERIOD RETURN(a) ASSETS ASSETS
--------- ---------- ------------- ----------- ------------- --------- --------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FOR THE PERIOD ENDED DECEMBER 31,
1994 FST
shares(d)....... $1.00 $0.0424 $0.0000 $0.0424 $(0.0424) $1.00 4.36%(b) 0.15%(b) 4.64%(b)
1994 FST Admin-
istration
shares(d)....... 1.00 0.0426 0.0000 0.0426 (0.0426) 1.00 4.10(b) 0.40(b) 4.67(b)
FOR THE PERIOD ENDED JANUARY 31,
1993-FST
shares(c)....... 1.00 0.0256 0.0001 0.0257 (0.0257) 1.00 3.14(b) 0.08(b) 3.10(b)
1993-FST Admin-
istration
shares(c)....... 1.00 0.0120 0.0001 0.0121 (0.0121) 1.00 2.87(b) 0.35(b) 2.85(b)
<CAPTION>
RATIOS ASSUMING NO
WAIVER OF FEES AND NO
EXPENSE LIMITATIONS
-------------------------
NET
ASSETS AT RATIO OF NET
END RATIO OF INVESTMENT
OF PERIOD EXPENSES TO INCOME TO
(IN AVERAGE NET AVERAGE NET
000'S) ASSETS ASSETS
--------- ------------ ------------
<S> <C> <C> <C>
FOR THE PERIOD ENDED DECEMBER 31,
1994 FST
shares(d)....... $258,350 0.25%(b) 4.54%(b)
1994 FST Admin-
istration
shares(d)....... 54,253 0.50(b) 4.57(b)
FOR THE PERIOD ENDED JANUARY 31,
1993-FST
shares(c)....... 44,697 0.59(b) 2.59(b)
1993-FST Admin-
istration
shares(c)....... 14,126 0.76(b) 2.44(b)
</TABLE>
- ----
(a) Assumes investment at the net asset value at the beginning of the period,
reinvestment of all distributions and a complete redemption of the invest-
ment at the net asset value at the end of the period.
(b) Annualized.
(c) FST share and FST Administration share activity commenced April 6, 1993
and September 1, 1993, respectively.
(d) The information presented above reflects eleven months of operations due
to a change in fiscal year end. This change was caused by the reorganiza-
tion of the funds as a series of Goldman Sachs Money Market Trust.

9
<PAGE>

- -------------------------------------------------------------------------------

10
<PAGE>

AN INTRODUCTION TO THE FUNDS

11
<PAGE>

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE PRIME OBLIGATIONS FUND

(A) securities issued or guaranteed as to principal and interest by the
U.S. Government, its agencies, authorities and instrumentalities ("U.S.
Government Securities");

(C) commercial paper (including variable amount master demand notes and as-
set-backed commercial paper) issued or guaranteed by U.S. corporations,
U.S. commercial banks, or other entities;

(D) unrated notes, paper or other instruments which are determined to be of
comparable high quality by the Adviser pursuant to criteria approved by
the Trustees;

(E) other short-term obligations issued or guaranteed by U.S. corporations,
or other entities (including short-term funding agreements);

(G) repurchase agreements.

Prime Obligations Fund may acquire any of the above securities on a forward
commitment or when-issued basis.

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE MONEY MARKET FUND

(A) U.S. Government Securities;

12
<PAGE>

(E) unrated notes, paper or other instruments which are determined to be of
comparable high quality by the Adviser pursuant to criteria approved by
the Trustees;

(F) other short-term obligations issued or guaranteed by U.S. corporations,
foreign corporations or other entities, payable in U.S. dollars (in-
cluding short-term funding agreements);

(H) U.S. dollar denominated obligations of the International Bank for Re-
construction and Development;

(J) asset-backed securities (including interests in pools of assets such as
motor vehicle installment purchase obligations and credit card receiv-
ables); and

(K) repurchase agreements.

Money Market Fund may acquire any of the above securities on a forward com-
mitment or when-issued basis.

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE TREASURY OBLIGATIONS FUND

13
<PAGE>

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE GOVERNMENT FUND

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE TAX-FREE MONEY MARKET
FUND

(A) fixed rate notes and similar debt instruments rated in the highest
short-term rating category or in one of the two highest long-term rat-
ing categories of at least one NRSRO;

(D) unrated notes, paper or other instruments which are determined to be of
comparable high quality by the Adviser pursuant to criteria approved by
the Trustees; and

Tax-Free Fund may acquire any of the above securities on a forward commitment
or when-issued basis.

INVESTMENT OBJECTIVE AND POLICIES OF FINANCIAL SQUARE MUNICIPAL MONEY MARKET
FUND

14
<PAGE>

purposes (but not necessarily exempt from federal alternative minimum tax or
state and local taxes). Such Municipal Instruments may include:

(A) fixed rate notes and similar debt instruments rated in the highest
short-term rating category or in one of the two highest long-term rat-
ing categories of at least one NRSRO;

(D) unrated notes, paper or other instruments which are determined to be of
comparable high quality by the Adviser pursuant to criteria approved by
the Trustees; and

Municipal Fund may acquire any of the above securities on a forward commit-
ment or when-issued basis.

DESCRIPTION OF SECURITIES AND INVESTMENT TECHNIQUES

U.S. GOVERNMENT SECURITIES

15
<PAGE>

CUSTODIAL RECEIPTS

MUNICIPAL INSTRUMENTS

16
<PAGE>

financial institution at a purchase price equal to par plus accrued interest on
each interest rate reset date.

In order to enhance the liquidity, stability, or quality of a Municipal In-
strument, each Fund (other than Treasury Obligations Fund and Government Fund)
may acquire the right to sell the

17
<PAGE>

security to another party at a guaranteed price and date. These rights may be
referred to as puts, demand features, or standby commitments.

REPURCHASE AGREEMENTS

FORWARD COMMITMENTS AND WHEN-ISSUED SECURITIES

OTHER INVESTMENT COMPANIES

18
<PAGE>

INVESTMENT LIMITATIONS

INVESTMENT RESTRICTIONS

19
<PAGE>

RESTRICTED AND OTHER ILLIQUID SECURITIES

MANAGEMENT

THE ADVISER AND ADMINISTRATOR

20
<PAGE>

THE DISTRIBUTOR AND TRANSFER AGENT

TAXES

21
<PAGE>

or excise tax on any net investment income and net realized capital gains that
are distributed to its shareholders in accordance with certain timing require-
ments of the Code.

22
<PAGE>

states that certain thresholds for holdings of such obligations and/or report-
ing requirements are satisfied. Shareholders should consult their own tax ad-
visers concerning these matters.

NET ASSET VALUE

YIELD INFORMATION

23
<PAGE>

ORGANIZATION AND SHARES OF THE TRUST

As of February 24, 1995, Commerce Bank of Kansas City NA owned beneficially
35.20% of the outstanding shares of Financial Square Tax-Free Money Market
Fund.

24
<PAGE>

relating to that Fund and any changes in fundamental investment restrictions or
policies of such Fund. Approval by the shareholders of one Fund is effective
only as to that Fund.

25
<PAGE>

ADDITIONAL SERVICES

Each Fund has adopted a Service Plan with respect to the FST Service Shares
which authorizes it to compensate Service Organizations for providing account
administration and personal and account maintenance services to their customers
who are beneficial owners of such Shares. Each Fund will enter into agreements
with Service Organizations which purchase FST Service Shares on behalf of their
customers ("Service Agreements"). The Service Agreements will provide for com-
pensation to the Service Organization in an amount up to .50 of 1% (on an
annualized basis) of the average daily net asset value of the FST Service
Shares of that Fund attributable to or held in the name of the Service Organi-
zation for its customers; provided, however, that the fee paid for personal and
account maintenance services shall not exceed .25% of such average daily net
assets. The services provided by a Service Organization may include acting, di-
rectly or through an agent, as the sole shareholder of record, maintaining ac-
count records for its customers, and processing orders to purchase, redeem and
exchange FST Service Shares of a Fund for its customers, responding to inqui-
ries from prospective and existing shareholders and assisting customers with
investment procedures.

For the fiscal year ended December 31, 1994, Financial Square Prime Obliga-
tions Fund, Financial Square Treasury Obligations Fund, and Financial Square
Tax-Free Money Market Fund paid Service Organizations fees at the annual rate
of .50% of each Fund's average daily net assets attributable to FST Service
Shares.

Holders of FST Service Shares of a Fund will bear all expenses and fees paid
to Service Organizations with respect to such Shares as well as any other ex-
penses which are directly attributable to such Shares.

Service Organizations (other than broker-dealers) may charge other fees to
their customers who are the beneficial owners of FST Service Shares in connec-
tion with their customer accounts. These fees would be in addition to any
amounts received by the Service Organization under a Service Agreement and may
affect an investor's return with respect to an investment in a Fund.

All inquiries of beneficial owners of FST Service Shares of the Funds should
be directed to such owners' Service Organization.

PURCHASE OF SHARES

It is expected that all direct purchasers of FST Service Shares will be Serv-
ice Organizations or their nominees, which may purchase FST Service Shares of
the Funds through Goldman Sachs. Customers of Service Organizations may invest
in such shares only through their Service Organizations.

As set forth below, FST Service Shares of the Funds may be purchased on any
Business Day at the net asset value next determined after receipt from the
Service Organization of both the purchase order and the purchase price in Fed-
eral Funds. Purchase orders may be made by telephoning Goldman Sachs at 800-
621-2550 or by a written request addressed to Goldman Sachs, Attention: Share-
holder Services, Goldman Sachs Money Market Trust, 4900 Sears Tower, Chicago,
Illinois 60606. It is strongly recommended that payment be effected by wiring
Federal Funds to The Northern Trust Company ("Northern"), Chicago, Illinois, as
the sub-custodian for State Street Bank and Trust Company ("State Street").

Purchases of FST Service Shares may also be made by a Service Organization by
delivering a Federal Reserve draft or check payable to the appropriate Fund and
drawn on a U.S. bank to Goldman Sachs, Attention: Shareholder Services, Goldman
Sachs Money Market Trust, 4900 Sears Tower, Chicago, Illinois 60606. It is ex-
pected that Federal Reserve drafts will ordinarily be converted to Federal
Funds on the day of receipt and that checks will be

26
<PAGE>

converted to Federal Funds within two Business Days after receipt. FST Service
Shares purchased by check may not be redeemed until the check has cleared, as
described under "Redemption of Shares."

The Service Organizations are responsible for timely transmittal of purchase
orders to Goldman
Sachs and Federal Funds to Northern. In order to facilitate timely transmittal,
the Service Organizations have established times by which purchase orders and
Federal Funds must be received by them.
- --------------------------------------------------------------------------------
FST Service Shares of the Prime Obligations Fund, Money Market Fund and Trea-
sury Obligations Fund are deemed to have been purchased when an order becomes
effective and are entitled to dividends on FST Service Shares purchased as fol-
lows:

<TABLE>
<CAPTION>
IF ORDER IS RECEIVED FROM A SERVICE
ORGANIZATION BY GOLDMAN SACHS DIVIDENDS BEGIN
----------------------------------- ---------------
<S> <C>
By: 3:00 p.m.--N.Y. time Same Business Day
- -------------------------------------------------------------
After: 3:00 p.m.--N.Y. time Next Business Day
- -------------------------------------------------------------
</TABLE>

FST Service Shares of the Government Fund are deemed to have been purchased
when an order becomes effective and are entitled to dividends on FST Service
Shares purchased as follows:

<TABLE>
<CAPTION>
IF ORDER IS RECEIVED FROM A SERVICE
ORGANIZATION BY GOLDMAN SACHS DIVIDENDS BEGIN
----------------------------------- ---------------
<S> <C>
By: 5:00 p.m.--N.Y. time Same Business Day
- -------------------------------------------------------------
After: 5:00 p.m.--N.Y. time Next Business Day
- -------------------------------------------------------------
</TABLE>

FST Service Shares of the Tax-Free Fund and Municipal Fund are deemed to have
been purchased when an order becomes effective and are entitled to dividends on
FST Service Shares purchased as follows:

<TABLE>
<CAPTION>
IF ORDER IS RECEIVED FROM A SERVICE
ORGANIZATION BY GOLDMAN SACHS DIVIDENDS BEGIN
----------------------------------- ---------------
<S> <C>
By: 1:00 p.m.--N.Y. time Same Business Day
- -------------------------------------------------------------
After: 1:00 p.m.--N.Y. time Next Business Day
- -------------------------------------------------------------
</TABLE>

27
<PAGE>

A Business Day means any day on which the New York Stock Exchange is open,
except for days on which Chicago, Boston or New York banks are closed for local
holidays.

FST Service Shares of a Fund are purchased at the net asset value per share
without the imposition of a sales charge.

Goldman Sachs, as each Fund's transfer agent, will maintain a complete record
of transactions and FST Service Shares of each Fund held in each record hold-
er's account.

The Trust and Goldman Sachs each reserves the right to reject any purchase
order for any reason.

MINIMUM INVESTMENT AND OTHER INFORMATION

The minimum requirement for investing in a Fund is $50 million ($10 million
if an investor satisfies the minimum initial investment in any other Fund). The
Trust and Goldman Sachs each reserves the right to waive the minimum investment
requirement. A Service Organization may impose a minimum amount for initial and
subsequent investments in FST Service Shares of the Funds, and may establish
other requirements such as a minimum account balance. A Service Organization
may effect redemptions of noncomplying accounts, and may impose a charge for
any special services rendered to its customers. Customers should contact their
Service Organizations for further information concerning such requirements and
charges. A Service Organization may purchase FST Service Shares in connection
with sweep account programs.

SUBSEQUENT INVESTMENTS

There is no minimum amount required for subsequent investments. Orders for
the purchase of additional FST Service Shares should be accompanied by informa-
tion identifying the account in which FST Service Shares are to be purchased.

REPORTS TO SHAREHOLDERS

The Trust will issue an annual report containing audited financial statements
and a semi-annual report to record holders of FST Service Shares of each Fund,
including Service Organizations who hold such Shares for the benefit of their
customers. Upon request, a printed confirmation for each transaction will be
provided by Goldman Sachs. Any dividends and distributions paid by the Funds
are also reflected in regular statements issued by Goldman Sachs to sharehold-
ers of record. The Service Organizations, as record holders of FST Service
Shares, will be responsible for providing similar services to their own custom-
ers who are the beneficial owners of such Shares. For example, Service Organi-
zations are responsible for providing each customer exercising investment dis-
cretion with monthly statements with respect to such customer's account in lieu
of an immediate confirmation of each transaction.

DISTRIBUTIONS

All or substantially all of each Fund's net investment income will be de-
clared daily (as of 4:00 p.m. New York time for each Fund other than Government
Fund and as of 5:00 p.m. New York time for Government Fund) as a dividend and
distributed to Service Organizations, as record owners of FST Service Shares,
monthly. Distributions will be made in additional FST Service Shares of the
same

28
<PAGE>

Fund or, at the election of a Service Organization, in cash. The election to
reinvest dividends and distributions or receive them in cash may be changed by
a Service Organization at any time upon written notice to Goldman Sachs. If no
election is made, all dividends and capital gain distributions will be rein-
vested. Dividends will be reinvested as of the last calendar day of each month.
Cash distributions will be paid on or about the first business day of each
month. Net short-term capital gains, if any, will be distributed in accordance
with the requirements of the Code and may be reflected in the Fund's daily dis-
tributions. Each Fund may distribute at least annually its long-term capital
gains, if any, after reduction by available capital losses. In order to avoid
excessive fluctuations in the amount of monthly capital gains distributions, a
portion of any net capital gains realized on the disposition of securities dur-
ing the months of November and December may be distributed during the subse-
quent calendar year. Although realized gains and losses on the assets of a Fund
are reflected in the net asset value of the Fund, they are not expected to be
of an amount which would affect the Fund's net asset value of $1.00 per share.

EXCHANGES

FST Service Shares of each Fund may be exchanged by Service Organizations for
the relevant class of any Fund or Portfolio of Goldman Sachs Money Market Trust
at the net asset value next determined either by writing to Goldman Sachs, At-
tention: Shareholder Services, Goldman Sachs Money Market Trust, 4900 Sears
Tower, Chicago, Illinois 60606 or, if previously elected in the Account Infor-
mation Form, by calling Goldman Sachs at 800-621-2550. All telephone exchanges
must be registered in the same name(s) and with the same address as are regis-
tered in the Fund from which the exchange is being made. It may be difficult to
implement the telephone exchange privilege in times of drastic economic or mar-
ket changes. In an effort to prevent unauthorized or fraudulent exchange re-
quests by telephone, Goldman Sachs employs reasonable procedures as set forth
under "Redemption of Shares" to confirm that such instructions are genuine. Ex-
changes are available only in states where the exchange may legally be made.
The exchange privilege may be modified or withdrawn at any time on 60 days'
written notice.

REDEMPTION OF SHARES

HOW TO REDEEM

Customers of Service Organizations may redeem FST Service Shares of a Fund
through their respective Service Organizations. The Service Organizations are
responsible for the transmittal of redemption requests by their customers to
Goldman Sachs. In order to facilitate timely transmittal of redemption re-
quests, Service Organizations have established procedures by which redemption
requests must be made and times by which redemption requests must be received
by them. Additional documentation may be required when deemed appropriate by a
Service Organization.

A Service Organization as the record holder of FST Service Shares may then
redeem such Shares without charge upon request on any Business Day at the net
asset value next determined after receipt by Goldman Sachs of the redemption
request. Redemption requests may be made by telephoning Goldman Sachs at 800-
621-2550 or by a written request addressed to Goldman Sachs, Attention: Share-
holder Services, Goldman Sachs Money Market Trust, 4900 Sears Tower, Chicago,
Illinois 60606. A Service Organization may request redemptions by telephone
only if the optional tele-

29
<PAGE>

phone redemption privilege has been elected on the Account Information Form. It
may be difficult to implement redemptions by telephone in times of drastic eco-
nomic or market changes.

Additional documentation may be required by Goldman Sachs in order to estab-
lish that a redemption request has been properly authorized. A redemption re-
quest will not be considered to have been received in proper form until such
additional documentation has been submitted to Goldman Sachs by the
recordholder of FST Service Shares. The payment of redemption proceeds for FST
Service Shares recently purchased by check will be delayed for up to 15 days
until the check has cleared.
PAYMENT OF REDEMPTION PROCEEDS AND DIVIDENDS

In accordance with the following, redemption proceeds will be wired to the
record holder of FST Service Shares.

- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
REDEMPTION REQUEST RECEIVED
FROM SERVICE ORGANIZATION REDEMPTION PROCEEDS
BY GOLDMAN SACHS ORDINARILY DIVIDENDS
--------------------------- ------------------- ---------
(1) In the case of the Taxable Funds
<S> <C> <C>
By: 3:00 p.m.--N.Y. time Wired Same Business Day Not earned on Day
request is
received
- ----------------------------------------------------------------------------
After: 3:00 p.m.--N.Y. time Wired Next Business Day Earned on Day
request is
received
- ----------------------------------------------------------------------------
(2) In the case of the Tax-Free Fund and Municipal Fund
By: 12:00 noon--N.Y. time Wired Same Business Day Not earned on Day
request is
received
- ----------------------------------------------------------------------------
After: 12:00 noon--N.Y. time Wired Next Business Day Earned on Day
request is
received
- ----------------------------------------------------------------------------
</TABLE>

30
<PAGE>

After a wire has been initiated by Goldman Sachs, neither Goldman Sachs nor
the Trust assumes any further responsibility for the performance of intermedi-
aries or the FST Service Shareholder's Service Organization in the transfer
process. If a problem with such performance arises, the FST Service Share-
holder should deal directly with such intermediaries or Service Organization.

OTHER REDEMPTION INFORMATION

A minimum account balance of $50 million in a Fund ($10 million if an in-
vestor satisfies the minimum initial investment in any other Fund) is required
to remain a FST Service Shareholder. A Fund may redeem all of the FST Service
Shares of any FST Service Shareholder whose account in that Fund has a net as-
set value which is less than the minimum described above. The Trust will give
sixty (60) days' prior written notice to such Shareholders whose FST Service
Shares are being redeemed to allow them to purchase sufficient additional
FST Service Shares of the Fund to avoid such redemption.

-------------------------------