<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GOLDMAN SACHS TRUST
FINANCIAL SQUARE FUNDS
- -------------------------------- --------------------------------
- -------------------------------- --------------------------------
TAXABLE FUNDS
FINANCIAL SQUARE PRIME OBLIGATIONS FUND. A diversified money market portfolio
which invests in obligations of U.S. banks, commercial paper and other high
quality, short-term obligations of U.S. companies, securities of the U.S.
Government, its agencies, authorities and instrumentalities, and repurchase
agreements.
FINANCIAL SQUARE MONEY MARKET FUND. A diversified money market portfolio which
invests in obligations of U.S. banks and foreign banks, commercial paper and
other high-quality, short-term obligations of U.S. and foreign companies
payable in U.S. dollars, securities of the U.S. Government, its agencies,
authorities and instrumentalities, and repurchase agreements.
FINANCIAL SQUARE TREASURY INSTRUMENTS FUND. The Fund invests in securities
issued or guaranteed by the U.S. Treasury, the interest income from which is
generally exempt from state income taxation.
FINANCIAL SQUARE TREASURY OBLIGATIONS FUND. Rated "AAA" by Standard & Poor's
Ratings Group and "Aaa" by Moody's Investors Services, Inc., the fund invests
in 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
collateralized by such securities.
FINANCIAL SQUARE GOVERNMENT FUND. The Fund invests in securities of the U.S.
Government, its agencies, authorities and instrumentalities, and repurchase
agreements collateralized by such securities.
FINANCIAL SQUARE FEDERAL FUND. The Fund invests in securities of the U.S.
Government and certain of its agencies, authorities and instrumentalities, the
interest income from which is generally exempt from state income taxation.
TAX-EXEMPT FUND
FINANCIAL SQUARE TAX-FREE MONEY MARKET FUND. The Fund invests in securities
issued by or on behalf of states, territories and possessions of the United
States, its political subdivisions, agencies, authorities, and
instrumentalities, and the District of Columbia, the interest from which is
exempt from federal income tax.
1
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE PRIME OBLIGATIONS FUND
June 30, 1997
(Unaudited)
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER AND CORPORATE OBLIGATIONS--54.9%
BANK HOLDING COMPANIES
American Express Centurion Bank
$ 25,000,000 5.66% 07/08/97 $ 25,000,000
25,000,000 5.66 07/14/97 25,000,000
25,000,000 5.66 07/18/97 25,000,000
Bank One Columbus, N.A.
50,000,000 5.67 07/01/97 49,966,129
Bank One Texas
75,000,000 5.47 07/09/97 74,942,056
BankAmerica Corp.
50,000,000 5.34 08/04/97 49,747,833
Comerica Bank Detroit
65,000,000 5.59 07/07/97 64,973,624
75,000,000 5.59 07/15/97 74,959,297
Corestates Bank, N.A.
30,000,000 5.65 07/02/97 30,000,000
FCC National Bank
90,000,000 5.61 07/01/97 89,962,818
First Bank, N.A.
65,000,000 5.59 07/16/97 64,965,101
25,000,000 5.60 07/16/97 24,988,775
Southtrust Bank of Alabama, N.A.
115,000,000 5.63 07/01/97 114,972,080
BUSINESS CREDIT INSTITUTIONS
General Electric Capital Corp.
50,000,000 6.85 07/01/97 50,000,000
50,000,000 5.72 09/16/97 49,405,389
50,000,000 5.91 11/19/97 48,891,583
COMMERCIAL BANKS
CP Trust Certificates Series 1996-1
85,000,000 5.67(a) 07/01/97 85,000,000
HOME BUILDERS
International Lease Finance Corp.
150,000,000 5.62 07/02/97 149,976,583
INDUSTRIAL
Caterpillar Financial Services Corp.
25,000,000 5.39 08/26/97 24,790,389
LIFE INSURANCE
Commonwealth Life Insurance Co.
20,000,000 5.83(b) 07/01/97 20,000,000
Pacific Mutual Life Insurance Co.
50,000,000 5.71(b) 07/01/97 50,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER AND CORPORATE OBLIGATIONS
(CONTINUED)
LIFE INSURANCE (CONTINUED)
Prudential Funding Corp.
$100,000,000 5.54% 07/14/97 $ 99,799,944
50,000,000 5.55 08/18/97 49,630,000
MOTOR VEHICLES AND EQUIPMENT
Ford Motor Credit Corp.
100,000,000 5.35 08/18/97 99,286,667
RECEIVABLE/ASSET FINANCINGS
Corporate Receivables Corp.
40,000,000 5.65 07/02/97 39,993,722
25,000,000 5.63 07/10/97 24,964,813
25,000,000 5.57 09/09/97 24,729,236
Enterprise Funding Corp.
79,466,000 5.54 07/08/97 79,380,397
International Securitization Corp.
20,000,000 5.59 07/17/97 19,950,311
7,575,000 5.59 07/24/97 7,547,947
New Center Asset Trust
80,000,000 5.34 08/01/97 79,632,133
Receivables Capital Corp.
39,014,000 5.60 07/02/97 39,007,931
39,371,000 5.60 07/08/97 39,328,129
66,157,000 5.57 07/10/97 66,064,876
WCP Funding Corp.
40,000,000 5.55 07/30/97 39,821,167
SECURITY AND COMMODITY BROKERS, DEALERS AND SERVICES
Bankers Trust Securities Corp.
50,000,000 5.55 07/21/97 49,845,833
Bear Stearns Companies, Inc.
50,000,000 5.64 07/31/97 49,765,000
100,000,000 5.64 08/18/97 99,248,000
JP Morgan Securities, Inc.
50,000,000 5.69 07/15/97 50,000,000
Merrill Lynch & Co., Inc.
45,000,000 5.65 07/11/97 44,993,846
45,000,000 5.65 07/14/97 44,993,860
90,000,000 5.64 08/11/97 89,421,900
50,000,000 5.70 11/17/97 48,899,583
Smith Barney, Inc.
75,000,000 5.64 08/18/97 74,436,000
- ------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER AND CORPORATE OBLIGATIONS $2,453,282,952
- ------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
BANK NOTES--27.4%
American Express Centurion Bank
$ 32,000,000 5.65% 07/21/97 $ 32,000,000
Amsouth Bank of Alabama, N.A.
50,000,000 5.61 07/28/97 49,982,131
Bank One Milwaukee, N.A.
25,000,000 5.70 07/01/97 24,996,480
50,000,000 5.69 07/02/97 49,974,386
Comerica Bank Detroit
50,000,000 6.00 03/27/98 49,940,225
35,000,000 6.18 05/27/98 34,983,403
Corestates Bank, N.A.
25,000,000 5.65 07/03/97 25,000,000
25,000,000 5.66 07/04/97 25,000,000
25,000,000 5.66 07/07/97 25,000,000
Corestates Capital Corp.
25,000,000 5.65 07/23/97 25,000,000
Dakota Certificates of Standard Credit Card Master Trust
76,585,000 5.63 07/02/97 76,573,023
48,000,000 5.65 08/18/97 47,638,400
Fifth Third Bank of Northwestern Ohio
50,000,000 5.55 07/10/97 49,999,876
First Bank FSB
50,000,000 5.59 07/16/97 49,972,154
First National Bank of Boston
150,000,000 5.50 08/04/97 150,000,000
25,000,000 5.46 08/11/97 25,000,000
First National Bank of Chicago
80,000,000 5.72 08/20/97 80,000,000
First National Bank of Maryland
20,000,000 5.63(b) 07/30/97 19,998,055
Household Bank FSB
50,000,000 5.66(b) 07/23/97 49,999,240
Huntington National Bank
75,000,000 5.42 08/14/97 74,989,053
Morgan Guaranty Trust Co.
60,000,000 6.02 03/25/98 59,958,943
PNC Bank, N.A.
75,000,000 5.58 07/01/97 74,947,125
100,000,000 5.59(b) 07/01/97 99,980,191
25,000,000 5.59 07/21/97 24,990,377
- -------------------------------------------------------------------------------
TOTAL BANK NOTES $1,225,923,062
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BANKERS' ACCEPTANCES--1.1%
Wachovia Bank of Georgia, N.A.
$ 50,000,000 5.54% 07/03/97 $ 49,984,612
- ----------------------------------------------------------------------------------------------
TOTAL BANKERS' ACCEPTANCES $ 49,984,612
- ----------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT--9.6%
Crestar Bank
$ 50,000,000 5.72% 07/08/97 $ 50,000,000
First National Bank of Boston
10,000,000 5.72 07/07/97 10,000,000
Morgan Guaranty Trust Co.
75,000,000 5.91 03/19/98 74,979,491
Regions Bank
60,000,000 6.00 03/18/98 59,991,832
Union Bank of Los Angeles
150,000,000 5.54 08/27/97 150,000,000
World Savings Bank
60,000,000 5.57 07/07/97 59,999,901
25,000,000 5.61 09/19/97 24,997,809
- ----------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT $ 429,969,033
- ----------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--7.1%
Joint Repurchase Agreement Account
$315,700,000 6.01% 07/01/97 $ 315,700,000
- ----------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT $ 315,700,000
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $4,474,859,659(c)
</TABLE>
- --------------------------------------------------------------------------------
(a)Variable rate security-base index is either U.S. Treasury Bill, one or three
month LIBOR, one month commercial paper, Federal Funds, or Prime lending rate.
(b)Variable rate master note-base index is Federal Funds.
(c)The amount stated also represents aggregate cost for federal income tax
purposes.
Interest rates represent either the stated coupon rate, annualized yield on
date of purchase for discounted notes, or for floating rate securities, the
current reset rate, which is based upon current interest rate indices.
Maturity dates represent either the stated date on the security, the next
interest reset date for floating rate securities, or the prefunded date for
those types of securities.
The percentages shown for each investment category reflect the value of
investments in that category as a percentage of total net assets.
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE MONEY MARKET FUND
June 30, 1997
(Unaudited)
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER AND CORPORATE OBLIGATIONS--54.5%
BANK HOLDING COMPANIES
American Express Centurion Bank
$ 15,000,000 5.66% 07/08/97 $ 15,000,000
15,000,000 5.66 07/14/97 15,000,000
15,000,000 5.66 07/18/97 15,000,000
Bank One Columbus, N.A.
50,000,000 5.67 07/01/97 49,966,129
Comerica Bank Detroit
55,000,000 5.59 07/07/97 54,977,682
90,000,000 5.59 07/15/97 89,951,157
Corestates Bank, N.A.
15,000,000 5.65 07/07/97 15,000,000
FCC National Bank
110,000,000 5.61 07/01/97 109,954,556
First Bank, N.A.
25,000,000 5.60 07/16/97 24,988,775
Southtrust Bank of Alabama, N.A.
75,000,000 5.63 07/01/97 74,981,791
BUSINESS CREDIT INSTITUTIONS
General Electric Capital Corp.
75,000,000 6.75 07/01/97 75,000,000
90,000,000 5.76 08/04/97 90,000,000
COMMERCIAL BANKS
CP Trust Certificates Series 1996-1
60,000,000 5.67(a) 07/01/97 60,000,000
CP Trust Certificates Series 1996-2
50,000,000 5.70(a) 07/01/97 50,000,000
FOREIGN BANKS
Abbey National
150,000,000 5.57 07/15/97 149,887,942
ABN/AMRO Bank, New York
60,000,000 5.62 07/01/97 59,987,388
Banca Crt Financial Corp.
11,150,000 5.65 07/08/97 11,137,750
29,000,000 5.40 09/02/97 28,725,950
Bayerische Landesbank
15,000,000 5.56 07/28/97 14,988,491
BCI Funding Corp.
50,000,000 5.64 07/10/97 49,929,563
50,000,000 5.64 08/13/97 49,663,167
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER AND CORPORATE OBLIGATIONS
(CONTINUED)
FOREIGN BANKS (CONTINUED)
Bex America Finance, Inc.
$ 34,000,000 5.40% 08/01/97 $ 33,841,900
38,000,000 5.64 08/12/97 37,749,960
Den Danske Bank, New York
25,000,000 5.64 07/01/97 24,996,173
35,000,000 5.64 07/25/97 34,996,661
Indosuez North America, Inc.
72,205,000 5.65 07/07/97 72,137,007
50,000,000 5.63 07/11/97 49,921,806
Nordbanken North America
100,000,000 5.64 07/02/97 99,984,333
60,000,000 5.39 08/01/97 59,721,517
San Paolo U.S. Finance Corp.
50,000,000 5.66 07/21/97 49,842,778
37,000,000 5.70 11/24/97 36,144,683
Societe Generale, New York
40,000,000 5.64 07/01/97 39,993,424
LIFE INSURANCE
Sunamerica Life Insurance Co.
50,000,000 5.81(b) 07/01/97 50,000,000
MORTGAGE BROKERS
Nationwide Building Society
50,000,000 5.66 08/01/97 49,756,306
25,000,000 5.34 08/05/97 24,870,208
25,000,000 5.34 08/11/97 24,847,958
MOTOR VEHICLES AND EQUIPMENT
General Motors Acceptance Corp.
40,000,000 5.40 08/04/97 39,796,000
50,000,000 5.42 08/04/97 49,744,056
65,000,000 5.81 10/08/97 63,961,463
RECEIVABLE/ASSET FINANCINGS
Asset Securitization Corp.
74,000,000 5.63 07/02/97 73,988,427
60,000,000 5.65 08/19/97 59,538,583
15,000,000 5.65 08/21/97 14,879,938
Beta Finance
30,000,000 5.63 08/14/97 29,793,567
CC USA, Inc.
48,000,000 5.63 07/15/97 47,894,907
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER AND CORPORATE OBLIGATIONS (CONTINUED)
RECEIVABLE/ASSET FINANCINGS (CONTINUED)
CC U.S.A. Inc. (continued)
$ 30,000,000 5.39% 08/26/97 $ 29,748,467
Eureka Securities
25,000,000 5.63 08/11/97 24,839,701
SECURITY AND COMMODITY BROKERS, DEALERS AND SERVICES
JP Morgan Securities, Inc.
50,000,000 5.69 07/15/97 50,000,000
Merrill Lynch & Co., Inc.
35,000,000 5.65 07/11/97 34,995,214
35,000,000 5.65 07/14/97 34,995,225
120,000,000 5.70 11/17/97 117,359,000
Smith Barney, Inc.
25,000,000 5.64 08/18/97 24,812,000
TELECOMMUNICATIONS
Ameritech Corp.
17,000,000 5.89 08/12/97 17,011,987
- ------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER AND CORPORATE OBLIGATIONS $2,506,303,590
- ------------------------------------------------------------------------------------------------
BANK NOTES--11.2%
Amsouth Bank of Alabama, N.A.
$ 50,000,000 5.62% 07/15/97 $ 49,980,619
Bank One Columbus, N.A.
25,000,000 5.69 07/02/97 24,987,193
Bankers Trust Co., New York
69,500,000 5.70 07/01/97 69,493,448
First Bank FSB
50,000,000 5.59 07/16/97 49,972,154
First Bank, N.A.
50,000,000 5.60 07/16/97 49,974,424
First National Bank of Maryland
30,000,000 5.63(b) 07/28/97 29,997,211
25,000,000 5.63(b) 07/30/97 24,997,569
Household Bank FSB
25,000,000 5.66(b) 07/23/97 24,999,425
Nationsbank Corp.
24,000,000 5.93 09/29/97 24,028,977
PNC Bank, N.A.
25,000,000 5.58 07/01/97 24,982,375
50,000,000 5.59(b) 07/01/97 49,990,096
42,000,000 5.59(b) 07/03/97 41,994,084
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BANK NOTES (CONTINUED)
Southtrust Bank of Alabama, N.A.
$ 50,000,000 5.62%(b) 07/11/97 $ 49,999,157
- ------------------------------------------------------------------------------------------------
TOTAL BANK NOTES $ 515,396,732
- ------------------------------------------------------------------------------------------------
BANKERS' ACCEPTANCES--0.4%
Royal Bank of Canada, New York
$ 18,419,195 5.65% 09/02/97 $ 18,237,069
- ------------------------------------------------------------------------------------------------
TOTAL BANKERS' ACCEPTANCES $ 18,237,069
- ------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - YANKEEDOLLAR--27.3%
Bank of Tokyo, Mitsubishi Bank Ltd., New York
$ 50,000,000 5.80% 07/02/97 $ 49,999,984
Banque National de Paris, New York
50,000,000 5.75 08/19/97 50,000,336
Canadian Imperial Bank of Commerce, New York
63,000,000 5.94 03/17/98 62,987,174
Den Danske Bank, New York
25,000,000 5.64 07/15/97 24,994,539
50,000,000 5.64 07/16/97 49,992,320
Fuji Bank, New York
100,000,000 5.67 07/07/97 100,000,000
National Bank of Canada, New York
20,000,000 5.91 09/10/97 20,009,715
50,000,000 6.03 03/18/98 49,992,849
Norinchukin Bank, New York
70,000,000 5.77 07/07/97 70,000,116
65,000,000 5.78 07/07/97 65,000,215
25,000,000 5.74 07/28/97 25,000,186
45,000,000 5.71 08/18/97 45,000,594
Rabobank Nederland, New York
50,000,000 6.07 03/26/98 49,985,980
45,000,000 6.05 03/27/98 44,962,026
Sanwa Bank Limited, New York
200,000,000 5.75 08/21/97 200,002,795
Societe Generale, New York
50,000,000 5.49 08/11/97 50,000,554
50,000,000 5.55 09/02/97 50,000,000
25,000,000 6.05 03/24/98 24,991,302
Standard Chartered Bank, New York
25,000,000 5.75 07/01/97 25,000,000
50,000,000 5.73 08/15/97 50,000,616
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE MONEY MARKET FUND (continued)
June 30, 1997
(Unaudited)
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT - YANKEEDOLLAR (CONTINUED)
Sumitomo Bank, Los Angeles
$ 70,000,000 5.70% 07/10/97 $ 70,000,825
Westdeutsche Landesbank, New York
80,000,000 5.70 08/13/97 80,000,000
- ----------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT - YANKEEDOLLAR $1,257,922,126
- ----------------------------------------------------------------------------------------------
TAXABLE MUNICIPAL NOTES--0.6%
Florida Housing Finance Authority
$ 28,600,000 5.63%(b) 07/07/97 $ 28,600,000
- ----------------------------------------------------------------------------------------------
TOTAL TAXABLE MUNICIPAL NOTES $ 28,600,000
- ----------------------------------------------------------------------------------------------
TIME DEPOSIT--4.3%
Norwest Bank of Minnesota, N.A.
$200,000,000 6.00% 07/01/97 $ 200,000,000
- ----------------------------------------------------------------------------------------------
TOTAL TIME DEPOSIT $ 200,000,000
- ----------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--1.7%
Joint Repurchase Agreement Account
$ 79,600,000 6.01% 07/01/97 $ 79,600,000
- ----------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT $ 79,600,000
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $4,606,059,517(c)
- ----------------------------------------------------------------------------------------------
</TABLE>
(a)Variable rate security-base index is either U.S. Treasury Bill, one or three
month LIBOR, one month commercial paper, Federal Funds, or Prime lending rate.
(b)Variable rate master note-base index is Federal Funds.
(c)The amount stated also represents aggregate cost for federal income tax
purposes.
Interest rates represent either the stated coupon rate, annualized yield on
date of purchase for discounted notes, or, for floating rate securities, the
current reset rate, which is based upon current interest rate indices.
Maturity dates represent either the stated date on the security, the next
interest reset date for floating rate securities, or the prerefunded date for
those types of securities.
The percentages shown for each investment category reflect the value of
investments in that category as a percentage of total net assets.
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE TREASURY OBLIGATIONS FUND
June 30, 1997
(Unaudited)
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS--10.2%
United States Treasury Notes
$ 40,000,000 5.25% 12/31/97 $ 39,950,497
50,000,000 7.25 02/17/98 50,450,535
60,000,000 5.13 03/02/98 59,727,000
70,000,000 6.13 03/31/98 70,126,405
87,000,000 7.88 04/15/98 88,217,136
- ---------------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS $308,471,573
- ---------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--90.0%
Bear Stearns Companies, Inc., dated 06/30/97, repurchase price $130,021,486
(U.S. Treasury Stripped Securities: $132,745,998, 08/15/98-08/15/02)
$130,000,000 5.95% 07/01/97 $130,000,000
BT Securities, dated 06/30/97, repurchase price $130,020,764 (U.S. Treasury
Notes; $132,601,430, 6.375%-6.75%, 06/30/99-07/15/99)
130,000,000 5.75 07/01/97 130,000,000
Chase Manhattan Securities, dated 06/30/97, repurchase price $130,021,306
(U.S. Treasury Notes: $132,601,139, 5.0%-8.87%, 02/15/99-03/31/99)
130,000,000 5.90 07/01/97 130,000,000
CIBC Wood Gundy Securities, dated 06/30/97, repurchase price $130,021,215
(U.S. Treasury Notes: $132,602,343, 5.625%-6.25%, 08/31/97-07/31/98)
130,000,000 5.88 07/01/97 130,000,000
Dresdner Kleinwort Benson, dated 06/30/97, repurchase price $130,021,306
(U.S. Treasury Note: $132,602,740, 6.00%, 6/30/99)
130,000,000 5.90 07/01/97 130,000,000
Goldman, Sachs & Co., dated 06/19/97, repurchase price $201,830,000 (U.S.
Treasury Note: $63,464,539, 6.0%, 06/30/99; U.S. Treasury Bond:
$140,535,465, 11.125%, 08/15/03)
200,000,000 5.49 08/18/97 200,000,000
Goldman, Sachs & Co., dated 06/09/97, repurchase price $202,185,222 (U.S.
Treasury Notes: $204,000,016, 6.625%-7.0%, 07/15/06-05/15/07)
200,000,000 5.54 08/19/97 200,000,000
JP Morgan Securities, Inc., dated 06/30/97, repurchase price $130,021,486
(U.S. Treasury Notes: $132,927,593, 7.5%, 11/15/01)
130,000,000 5.95 07/01/97 130,000,000
Lehman Government Securities, Inc., dated 06/30/97, repurchase price
$50,008,194 (U.S. Treasury Stripped Securities: 51,002,558,
11/15/00-02/15/03)
50,000,000 5.90 07/01/97 50,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
Merrill Lynch Government Securities, Inc, dated 6/30/97, repurchase
price $130,020,583 (U.S. Treasury Notes: $132,601,532, 7.5%-9.125%,
08/15/97-05/15/02)
$130,000,000 5.70% 07/01/97 $130,000,000
Morgan Stanley & Co., dated 06/30/97, repurchase price $130,020,764
(U.S. Treasury Notes: $132,700,694, 4.75%-8.875%, 08/31/97-08/31/01)
130,000,000 5.75 07/01/97 130,000,000
Nomura Securities International, Inc., dated 06/30/97, repurchase price
$130,020,764 (U.S. Treasury Notes: $132,527,624, 5.62%-6.25%, 10/31/97-
06/30/98)
130,000,000 5.75 07/01/97 130,000,000
Sanwa Securities, dated 06/30/97, repurchase price $130,020,944 (U.S.
Treasury Notes: $132,600,690, 6.25%-8.75%, 11/15/99-05/15/06)
130,000,000 5.80 07/01/97 130,000,000
SBC Warburg, Inc., dated 06/30/97, repurchase price $52,808,697 (U.S.
Treasury Notes: $43,937,914, 5.625%-6.5%, 08/31/97-02/15/06; U.S.
Treasury Bonds: $10,584,692, 9.375%-14.25%, 02/15/02-02/15/06)
52,800,000 5.93 07/01/97 52,800,000
Smith Barney, Inc., dated 06/30/97, repurchase price $130,021,486 (U.S.
Treasury Bill: $11,022,211, 07/31/97; U.S. Treasury Stripped
Securities: $42,330,457, 02/15/98-11/15/04; U.S. Treasury Notes:
$79,248,155, 5.0%-7.75%, 01/31/99-03/31/02)
130,000,000 5.95 07/01/97 130,000,000
UBS Securities, Inc., dated 06/30/97, repurchase price $130,021,486
(U.S. Treasury Note: $132,601,398, 5.0%, 02/15/99)
130,000,000 5.95 07/01/97 130,000,000
Joint Repurchase Agreement Account
650,500,000 6.01 07/01/97 650,500,000
- ----------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $2,713,300,000
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $3,021,771,573(a)
- ----------------------------------------------------------------------------------------------
</TABLE>
(a)The amount stated also represents aggregate cost for federal income tax
purposes.
Interest rates represent either the stated coupon rate, annualized yield on
date of purchase for discounted notes, or, for floating rate securities, the
current reset rate, which is based upon current interest rate indices.
The percentages shown for each investment category reflect the value of the
investments in that category as a percentage of total net assets.
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE TREASURY INSTRUMENTS FUND
June 30, 1997
(Unaudited)
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS--99.2%
United States Treasury Bills
$ 15,800,000 4.65% 07/03/97 $ 15,795,918
4,600,000 4.75 07/03/97 4,598,786
1,000,000 4.58 07/17/97 997,964
5,000,000 4.87 07/24/97 4,984,443
6,900,000 4.85 07/31/97 6,872,113
3,600,000 4.89 07/31/97 3,585,330
20,000,000 5.02 08/14/97 19,877,289
50,800,000 5.05 08/14/97 50,486,451
United States Treasury Notes
50,000,000 5.88 07/31/97 50,031,466
10,000,000 6.50 08/15/97 10,013,359
40,000,000 6.00 08/31/97 40,024,162
65,000,000 5.75 09/30/97 65,061,598
- -------------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS $272,328,879
- -------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $272,328,879(a)
- -------------------------------------------------------------------------------------------------
</TABLE>
(a)The amount stated also represents aggregate cost for federal income tax
purposes.
The percentages shown for each category reflect the value of investments in
that category as a percentage of total net assets.
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE GOVERNMENT FUND
June 30, 1997
(Unaudited)
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS--47.4%
Federal Farm Credit Bank
$ 38,500,000 5.60%(a) 11/03/97 $ 38,507,992
25,000,000 5.45(a) 03/03/98 24,901,135
75,000,000 5.49(a) 04/14/98 74,947,827
Federal Home Loan Bank
30,000,000 5.66 09/05/97 29,694,750
15,000,000 5.45(a) 11/12/97 14,994,186
20,000,000 5.42(a) 12/02/97 19,987,697
50,000,000 5.52(a) 12/26/97 49,979,762
41,000,000 5.51(a) 03/06/98 40,979,288
59,000,000 5.51(a) 03/18/98 58,969,291
100,000,000 5.51(a) 04/14/98 99,945,895
Federal Home Loan Mortgage Corp.
20,000,000 5.72(a) 03/17/98 19,981,607
Federal National Mortgage Association
100,000,000 5.52(a) 09/12/97 99,982,960
50,000,000 5.26(a) 09/29/97 49,993,869
12,500,000 5.53(a) 10/29/97 12,498,056
75,000,000 5.53(a) 12/03/97 74,978,272
40,000,000 5.52 01/15/98 39,986,987
20,000,000 5.71 03/18/98 19,981,479
20,000,000 5.79 03/25/98 19,971,588
40,000,000 6.02 04/15/98 39,966,860
30,000,000 5.89 05/21/98 29,978,035
100,000,000 5.49(a)(b) 07/15/98 99,936,750
Student Loan Marketing Association
19,200,000 5.50 10/24/97 19,199,151
- ---------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS $979,363,437
- ---------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--57.6%
Bear Stearns Companies, Inc., dated 6/30/97, repurchase price
$75,012,396 (GNMA: $78,000,950, 7.50%-8.00%, 02/15/25-08/15/25)
$ 75,000,000 5.95% 07/01/97 $ 75,000,000
CS First Boston Corp., dated 05/23/97, repurchase price $100,926,667
(FNMA: $103,620,392, 6.75%-6.79%, 09/01/34-03/01/35)
100,000,000 5.56 07/22/97 100,000,000
Goldman, Sachs & Co., dated 06/20/97, repurchase price $100,923,333
(FNMA: $91,400,123, 5.5%-8.0%, 10/01/97-06/01/07, FMAC: $10,599,877,
5.5%-13.5%, 11/01/97-06/01/07)
100,000,000 5.54 08/19/97 100,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
Lehman Government Securities, Inc., dated 06/30/97, repurchase price
$54,708,965 (U.S. Treasury Stripped Securities: $55,796,251, 05/15/99-
11/15/00)
$ 54,700,000 5.90% 07/01/97 $ 54,700,000
Merrill Lynch Government Securities, Inc., dated 06/30/97, repurchase
price $25,003,958 (FNMA: $25,447,483, 5.632%, 11/25/97; FHLMC: $55,027,
5.30%, 10/26/98)
25,000,000 5.70 07/01/97 25,000,000
Morgan Stanley Group, Inc., dated 05/23/97, repurchase price
$100,926,667 (FGCI: $45,097,480, 6.0%-8.0%, 08/01/08-05/01/12; FGLMC:
$25,204,481, 6.5%-8.5%, 03/01/25-01/01/26; FGSB: $31,885,675, 6.5%-
8.0%, 07/01/01-01/01/04; FNCL: $62,097, 6.5%, 12/01/25; FNCI: $62,070,
7.0%, 03/01/08)
100,000,000 5.56 07/22/97 100,000,000
Nomura Securities International, Inc., dated 06/30/97, repurchase price
$325,054,618 (U.S. Treasury Notes: $14,710,695, 5.00%-8.25%, 08/15/97-
10/15/06; U.S. Treasury Bonds: $1,690,180, 9.375%-11.125%, 08/15/03-
02/15/06; TVA: $2,580,358, 6.58%-6.875%, 04/09/99-01/15/02; SLMA:
$10,770,650, 6.115%-6.365%, 08/12/98-01/28/99; FNMA: $117,276,185,
5.30%-9.55%, 07/25/97-06/26/07; FMAC: $65,469,251 5.37%-8.61%,
07/30/97-07/31/06; FHLB: $105,996,953, 4.86%-8.03%, 07/02/97-06/19/07;
FCSB: $13,006,144, 5.86%-7.51%, 10/09/97-10/10/00)
325,000,000 6.05 07/01/97 325,000,000
SBC Warburg, Inc., dated 06/30/97, repurchase price $50,008,236 (U.S.
Treasury Notes: $47,307,879, 5.125%-6.625%, 03/31/98-07/31/01; U.S.
Treasury Bonds: $5,188,694, 12.0%-14.25%, 02/15/02-05/15/05)
50,000,000 5.93 07/01/97 50,000,000
Joint Repurchase Agreement Account(c)
361,000,000 6.01 07/01/97 361,000,000
- ----------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $1,190,700,000
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $2,170,063,437(d)
- ----------------------------------------------------------------------------------------------
</TABLE>
(a)Variable rate security-base index is either Federal Funds, Prime lending
rate, or one month LIBOR.
(b)When-issued security.
(c)Portion of this security is being segregated for when issued securities.
(d)The amount stated also represents aggregate cost for federal income tax
purposes.
The percentages shown for each investment category reflect the value of
investments in that category as a percentage of total net assets.
Interest rates represent either the stated coupon rate, annualized yield on
date of purchase for discounted notes, or, for floating rate securities, the
current reset rate, which is based upon current interest rate indices.
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE FEDERAL FUND
June 30, 1997
(Unaudited)
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS--107.0%
Federal Farm Credit Bank
$ 8,600,000 5.43% 07/02/97 $ 8,598,702
18,900,000 5.39 07/07/97 18,883,022
12,200,000 5.40 07/10/97 12,183,530
23,495,000 5.42 07/15/97 23,445,478
10,000,000 5.48 07/24/97 9,964,989
12,765,000 5.48 07/25/97 12,718,365
23,075,000 5.40 07/29/97 22,978,085
13,800,000 5.51 08/11/97 13,713,401
4,300,000 5.51 08/14/97 4,271,042
1,700,000 5.51 08/19/97 1,687,250
16,000,000 5.46 08/21/97 15,876,353
35,000,000 5.46 08/25/97 34,708,042
8,255,000 5.61 10/20/97 8,112,209
18,785,000 5.61 11/03/97 18,419,084
10,000,000 5.61 11/04/97 9,803,650
10,000,000 5.45 03/03/98 9,960,518
75,000,000 5.49 04/14/98 74,947,827
Federal Home Loan Bank
11,100,000 5.43 07/07/97 11,089,955
46,300,000 5.42 07/24/97 46,139,673
50,000,000 5.45 07/30/97 49,780,486
35,000,000 5.50 07/31/97 34,839,583
18,400,000 5.44 08/01/97 18,313,806
20,000,000 5.67 08/01/97 20,000,000
11,355,000 5.43(a) 08/14/97 11,279,641
22,580,000 5.45(a) 08/14/97 22,429,592
34,330,000 5.54(a) 08/14/97 34,097,548
11,100,000 5.45 08/28/97 11,002,536
28,805,000 5.46 08/28/97 28,551,612
8,700,000 5.47 08/28/97 8,623,329
20,000,000 5.62 10/30/97 19,622,211
25,000,000 5.51 03/06/98 24,987,371
25,000,000 5.51 04/14/98 24,985,508
65,000,000 5.47(b) 07/02/98 64,943,073
Student Loan Marketing Association
25,000,000 5.42 07/31/97 24,887,083
13,500,000 5.43 08/01/97 13,436,876
25,000,000 5.44 08/01/97 24,882,889
25,000,000 5.43 08/15/97 24,830,313
25,000,000 5.42 08/29/97 24,778,135
25,000,000 5.42 09/29/97 24,661,250
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS (CONTINUED)
Tennessee Valley Authority
$50,000,000 5.52% 07/14/97 $ 49,900,333
13,170,000 5.42 07/17/97 13,138,275
20,000,000 5.50 07/23/97 19,932,778
25,000,000 5.38 07/28/97 24,899,125
51,360,000 5.45 08/04/97 51,095,639
15,000,000 5.43 09/15/97 14,828,050
- ---------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS $1,042,228,217
- ---------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $1,042,228,217(c)
- ---------------------------------------------------------------------------------------------
</TABLE>
(a)Portions of these securities are being segregated for when-issued
securities.
(b)When-issued securities.
(c)The amount stated also represents aggregate cost for federal income tax
purposes.
Interest rates represent either the stated coupon rate, annualized yield on
date of purchase for discounted notes, or, for floating rate securities, the
current reset rate, which is based upon current interest rate indices.
The percentages shown for each investment category reflect the value of
investments in that category as a percentage of total net assets.
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE TAX-FREE MONEY MARKET FUND
June 30, 1997
(Unaudited)
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ALABAMA--3.3%
Columbia IDB PCRB VRDN for Alabama Power Company Series 1995 B
(A-1/VMIG1)
$ 1,500,000 4.05% 07/01/97 $ 1,500,000
Homewood RB for Samford University (Bank of Nova Scotia LOC)
(VMIG1/A-1+)
17,300,000 4.05 07/01/97 17,300,000
Jefferson County MF Hsg. RB for Hickory Knolls Project Series 1994
(Amsouth Bank LOC)(P-1)
3,910,000 4.25 07/07/97 3,910,000
Mobile IDA PCRB for Alabama Power Series 1994(A-1/VMIG1)
5,700,000 4.05 07/01/97 5,700,000
- --------------------------------------------------------------------------------------------------
$ 28,410,000
- --------------------------------------------------------------------------------------------------
ALASKA--0.5%
Valdez Marine Terminal RB for Exxon Corporation Series 1993 A
(A-1+/VMIG1)
$ 4,300,000 4.00% 07/01/97 $ 4,300,000
- --------------------------------------------------------------------------------------------------
ARIZONA--2.5%
Maricopa County PCRB for Arizona Pollution Control Corp. Series
1994 A (Morgan Guaranty Trust Company)(A-1/P-1)
$19,200,000 4.00% 07/01/97 $ 19,200,000
Maricopa County PCRB for Southern California Edison Co.
Series 1995 G(A-1/P-1)
1,300,000 3.85 08/20/97 1,300,000
Phoenix IDA MF Hsg. VRDN for Del Mar Terrace Apartments (Bank of America
LOC)(VMIG1)
1,300,000 4.10 07/07/97 1,300,000
- --------------------------------------------------------------------------------------------------
$ 21,800,000
- --------------------------------------------------------------------------------------------------
ARKANSAS--0.5%
Crossett PCRB for Georgia Pacific Corp. Series 1991 VRDN (Suntrust Bank
LOC)(A-1+/P-1)
$ 4,500,000 4.20% 07/07/97 $ 4,500,000
- --------------------------------------------------------------------------------------------------
CALIFORNIA--1.1%
California School Cash Reserves Program Authority Series 1996 B (MBIA)(SP-
1/VMIG1)
$ 4,500,000 4.50% 12/19/97 $ 4,518,310
Los Angeles County, VRDN MF Hsg. for Valencia Village Series 1984 C
(Industrial Bank of Japan Ltd. LOC)(A-1)
4,700,000 4.30 07/07/97 4,700,000
- --------------------------------------------------------------------------------------------------
$ 9,218,310
- --------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COLORADO--0.6%
Colorado Health Facilities Authority Series 92 C (A-1+/VMIG1)
$ 5,400,000 4.15% 07/07/97 $ 5,400,000
- --------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA--1.5%
District of Columbia VRDN ACES for Georgetown University Series 1988 C(A-
1+/VMIG1)
$ 6,100,000 4.15% 07/07/97 $ 6,100,000
HFA MF Hsg. for Mclean Gardens South Apartments VRDN (Sumitomo Bank
LOC)(VMIG1)
7,000,000 4.35 07/07/97 7,000,000
- --------------------------------------------------------------------------------------------------
$ 13,100,000
- --------------------------------------------------------------------------------------------------
FLORIDA--4.7%
Dade County Water & Sewer System RB Series 1994 (FGIC)
(A-1/VMIG1)
$ 3,700,000 4.15% 07/07/97 $ 3,700,000
Florida Local Government Pooled CP Notes Series A (First Union National
Bank of Florida LOC)(A-1/P-1)
17,225,000 3.85 07/31/97 17,225,000
5,500,000 3.85 09/30/97 5,500,000
Putnam County Development Authority VRDN PCRB for Seminole Electric Series
1984 H(A-1+/P-1)
3,650,000 4.20 07/07/97 3,650,000
9,395,000 4.20 07/07/97 9,395,000
St Lucie County PCRB for Florida Power & Light Co. Series 1995
(A-1+/VMIG1)
1,000,000 4.00 07/01/97 1,000,000
- --------------------------------------------------------------------------------------------------
$ 40,470,000
- --------------------------------------------------------------------------------------------------
GEORGIA--6.9%
Bartow County PCRB for Georgia Power Company Co. 1996 (VMIG1)
$ 1,300,000 4.00% 07/01/97 $ 1,300,000
Burke County 1995 PCRB for Georgia Power Co. Fifth Series 1995 (VMIG1)
3,500,000 5.50 07/01/97 3,500,000
Burke County PCRB for Georgia Power Co.(A-1/VMIG1)
800,000 4.05 07/01/97 800,000
Burke County PCRB for Georgia Power Co. Eighth Series 1994
(A-1/VMIG1)
200,000 5.50 07/01/97 200,000
Burke County PCRB for Georgia Power Co. Ninth Series 1994
(A-1/VMIG1)
12,100,000 4.05 07/01/97 12,100,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE TAX-FREE MONEY MARKET FUND (continued)
June 30, 1997
(Unaudited)
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
GEORGIA (CONTINUED)
Effingham County PCRB for Savannah Electric and Power Company Series
1997(A-1/VMIG1)
$ 2,600,000 5.50% 07/01/97 $ 2,600,000
Floyd County PCRB for Georgia Power Co. Series 1996(A-1/VMIG1)
3,000,000 5.50 07/01/97 3,000,000
Georgia Municipal Gas Authority RB for Gas Portfolio II Project Series A(A-
1+)
19,500,000 4.15 07/07/97 19,500,000
Municipal Electric Authority of Georgia Subordinated General Resolution
Series 1985 A (Credit Suisse First Boston/Morgan Guaranty/Bayerische
Landesbank Girozentrale LOC)(A-1/VMIG1)
10,200,000 3.80 09/12/97 10,200,000
Municipal Electric Authority of Georgia Subordinated General Resolution
Series 1985 B (Credit Suisse First Boston/Morgan Guaranty/Bayerische
Landesbank Girozentrale LOC)(A-1+/VMIG1)
6,000,000 3.75 07/25/97 6,000,000
- --------------------------------------------------------------------------------------------------
$ 59,200,000
- --------------------------------------------------------------------------------------------------
HAWAII--0.5%
Hawaii Housing Finance and Development Authority VRDN
(FHLB)(A-1+)
$ 4,000,000 4.10% 07/07/97 $ 4,000,000
- --------------------------------------------------------------------------------------------------
ILLINOIS--6.7%
Chicago GO Tender Notes Series 1997(A-1+/MIG1)
$10,000,000 3.65% 02/05/98 $ 10,000,000
Illinois Health Facilities Authority VRDN for Central Dupage Hospital
(Rabobank Nederland LOC)(VMIG1)
3,100,000 4.10 07/01/97 3,100,000
Illinois Health Facilities Authority VRDN for Healthcorp Affiliates
Projects Series 1985 A (Northern Trust Company LOC)(VMIG1)
2,400,000 4.20 07/07/97 2,400,000
Illinois Health Facilities Authority VRDN for Resurrection Healthcare
(VMIG1)
2,100,000 4.25 07/01/97 2,100,000
Illinois Health Facilities Authority VRDN Series 1985 C Revolving Fund
Pooled Finance Program (First National Bank of Chicago LOC) (A-1+/VMIG1)
4,000,000 4.15 07/07/97 4,000,000
Illinois Health Facilities Authority VRDN Series 1985 D Revolving Fund
Pooled Finance Program (First National Bank of Chicago LOC) (A-1+/VMIG1)
21,000,000 4.15 07/07/97 21,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ILLINOIS (CONTINUED)
O'Hare International Airport RB(P-1)
$ 5,100,000 4.15% 07/01/97 $ 5,100,000
Sauget PCRB VRDN Series 1992(P-1)
1,000,000 4.25 07/07/97 1,000,000
Sauget PCRB VRDN Series 1993(P-1)
1,900,000 4.25 07/07/97 1,900,000
Societe Generale Municipal Securities Trust Receipts for Chicago Midway
Airport RB Series 1996 A (MBIA)(A-1+)
7,540,000 4.35 07/07/97 7,540,000
- --------------------------------------------------------------------------------------------------
$ 58,140,000
- --------------------------------------------------------------------------------------------------
INDIANA--2.5%
Fort Wayne Hospital Authority VRDN for Parkview Memorial Hospital Series
1985 B (Bank of America LOC)(VMIG1)
$ 1,600,000 4.15% 07/07/97 $ 1,600,000
Fort Wayne Parkview Memorial Hospital VRDN Series 1985 B, C & D (Bank of
America LOC)(VMIG1)
10,000,000 4.15 07/07/97 10,000,000
Jasper County PCRB for Nipsco Series 1994 A(A-1/VMIG1)
2,800,000 4.05 07/01/97 2,800,000
Warrick County PCRB for Aluminum Company of America Series 1992(A-1)
7,475,000 4.20 07/07/97 7,475,000
- --------------------------------------------------------------------------------------------------
$ 21,875,000
- --------------------------------------------------------------------------------------------------
IOWA--3.2%
Chillicothe PCRB for Midwest Power Systems Series 1993 A (A-1/VMIG1)
$ 3,300,000 4.20% 07/07/97 $ 3,300,000
Louisa County PCRB for Iowa-Illinois Gas & Electric Co./Midamerican Energy
Co. Series 1986 A(A-1)
10,000,000 4.20 07/07/97 10,000,000
Salix PCRB VRDN for Midwest Power Systems Inc.(A-1/VMIG1)
14,000,000 4.20 07/07/97 14,000,000
- --------------------------------------------------------------------------------------------------
$ 27,300,000
- --------------------------------------------------------------------------------------------------
KENTUCKY--0.3%
Calvert PCRB for Air Products and Chemicals, Inc. Project
Series 1993 A(A-1)
$ 3,000,000 4.20% 07/07/97 $ 3,000,000
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LOUISIANA--2.1%
Calcasieu Parish VRDN RB for Olin Corp. Series 1993 B
(Wachovia Bank of North Carolina)(A-1+)
$ 1,200,000 4.00% 07/01/97 $ 1,200,000
Louisiana Public Facilities Authority Health Care System
Series 1997 D(A-1+/VMIG1)
9,500,000 3.70 07/30/97 9,500,000
Plaquemines Port Marine Terminal RB for Teco Energy Inc.
Series 1985 B(A-1/P-1)
4,450,000 3.85 08/20/97 4,450,000
St. James Parish PCRB for Occidental Petroleum Corp.
Series 1996 (Wachovia Bank LOC)(P-1)
3,000,000 4.05 07/07/97 3,000,000
- --------------------------------------------------------------------------------------------------
$ 18,150,000
- --------------------------------------------------------------------------------------------------
MARYLAND--1.2%
Anne Arundel County RB for Baltimore Gas & Electric Series 1985
(A-1/VMIG1)
$ 1,000,000 3.75% 08/13/97 $ 1,000,000
5,380,000 3.85 09/12/97 5,380,000
Baltimore County PCRB Baltimore Gas & Electric Series 1985
(A-1/VMIG1)
4,000,000 3.75 07/24/97 4,000,000
- --------------------------------------------------------------------------------------------------
$ 10,380,000
- --------------------------------------------------------------------------------------------------
MASSACHUSETTS--5.0%
Massachusetts Health & Education Authority RB For Harvard University Series
I(VMIG1)
$42,700,000 4.00% 07/07/97 $ 42,700,000
- --------------------------------------------------------------------------------------------------
MICHIGAN--2.7%
Michigan GO Notes(SP-1+/MIG1)
$18,000,000 4.50% 09/30/97 $ 18,044,101
Michigan Job Development Authority for Mazda Motor Manufacturing VRDN
(Sumitomo Bank LOC)(VMIG1)
1,400,000 4.38 07/07/97 1,400,000
Michigan State Strategic Fund Ltd. PCRB for Dow Chemical
Series 1987(P-1)
2,000,000 3.75 08/08/97 2,000,000
Monroe County Economic Development Corp. Ltd. RB Series 1992 CC (Barclays
Bank)(P-1)
1,900,000 4.25 07/07/97 1,900,000
- --------------------------------------------------------------------------------------------------
$ 23,344,101
- --------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MINNESOTA--0.7%
Minnesota Higher Education Facility Authority, VRDN RB for Carleton College
Series 3-12(VMIG1)
$ 2,070,000 4.05% 07/07/97 $ 2,070,000
Port Authority of St. Paul VRDN for Weyerhaeuser Project
Series 1993(A-1)
4,000,000 4.20 07/07/97 4,000,000
- --------------------------------------------------------------------------------------------------
$ 6,070,000
- --------------------------------------------------------------------------------------------------
MISSISSIPPI--0.3%
Grenada County Refunding RB VRDN for Georgia Pacific Corp. Series 1994
(Sumitomo Bank LOC)(A-1/P-1)
$ 1,000,000 4.35% 07/07/97 $ 1,000,000
Mississippi Higher Education Facilities Authority VRDN RB for Baptist
Medical Center Series 1990 B (Rabobank Nederland)(VMIG1)
1,300,000 4.25 07/07/97 1,300,000
- --------------------------------------------------------------------------------------------------
$ 2,300,000
- --------------------------------------------------------------------------------------------------
MISSOURI--0.7%
Missouri Health & Education Facility Authority VRDN
(MBIA)(A-1+/AAA)
$ 4,500,000 4.15% 07/07/97 $ 4,500,000
Monsanto Corporation State Environmental Improvement and Energy Resources
Authority(P-1)
1,500,000 4.25 07/07/97 1,500,000
- --------------------------------------------------------------------------------------------------
$ 6,000,000
- --------------------------------------------------------------------------------------------------
NEVADA--2.4%
Clark County VRDN for Nevada Airport System (MBIA)(A-1/VMIG1)
$16,500,000 4.15% 07/07/97 $ 16,500,000
Eagle Tax Exempt Trust Series 97C2801 Class A COPS for Nevada GO Bonds
Series 1994(A-1+)
4,000,000 4.25 07/07/97 4,000,000
- --------------------------------------------------------------------------------------------------
$ 20,500,000
- --------------------------------------------------------------------------------------------------
NEW HAMPSHIRE--0.4%
New Hampshire Business Finance Authority PCRB for New England Power Series
1990 B(A-1/VMIG1)
$ 3,100,000 3.70% 07/31/97 $ 3,100,000
- --------------------------------------------------------------------------------------------------
NEW MEXICO--2.1%
Albuquerque RB for Sisters of Charity Series 1992
(A-1+/VMIG1)
$ 5,000,000 4.15% 07/07/97 $ 5,000,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE TAX-FREE MONEY MARKET FUND (continued)
June 30, 1997
(Unaudited)
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW MEXICO (CONTINUED)
Farmington PCRB for Public Service Co. of New Mexico San Juan Project
Series 1997 A (Bank of America LOC)(A-1+/VMIG1)
$ 3,200,000 4.20% 07/07/97 $ 3,200,000
Farmington PCRB for Public Service Co. of New Mexico San Juan Project
Series 1997 B (Societe Generale LOC)(A-1+/VMIG1)
10,000,000 4.15 07/07/97 10,000,000
- -------------------------------------------------------------------------------------------------
$18,200,000
- -------------------------------------------------------------------------------------------------
NEW YORK--6.0%
Great Neck, NY North Water Authority Water System RB Series 1993 A VRDN
(FGIC)(A-1+/VMIG1)
$ 900,000 4.05% 07/07/97 $ 900,000
Metropolitan Transportation Authority Commuter Facility VRDN Series 1991
(National Westminster/Morgan Guaranty/Industrial Bank of Japan/Sumitomo
Bank/J.P. Morgan/Bank of Tokyo LOC)(AA-/VMIG1)
2,000,000 4.15 07/07/97 2,000,000
New York City Municipal Water Finance Authority CP Notes Series 5
(Bayerische Landesank/Westdeutsche Landesbank/Landesbank Hessen-
Thueringen LOC)(A-1+/P-1)
12,500,000 3.75 07/31/97 12,500,000
New York City Puttable Tax-exempt Receipts GO Bonds Fiscal 1995 Series D
(MBIA)(VMIG1)
10,000,000 4.10 07/07/97 10,000,000
New York State Energy Research & Development Authority PCRB for Brooklyn
Union Gas Series 1997 A-1 (MBIA)(A-1+/VMIG1)
3,500,000 4.05 07/07/97 3,500,000
New York State Energy Research & Development Authority PCRB for Rochester
Gas Series 1984 (Credit Suisse LOC)(P-1)
2,900,000 3.55 07/31/97 2,900,000
New York State Floating Rate Trust Receipts Series 1997(A-1/VMIG1)
2,500,000 4.35 07/07/97 2,500,000
New York State GO BANS Series S(A-1/P-1)
12,700,000 3.80 08/11/97 12,700,000
New York State Triborough Bridge & Tunnel Authority VRDN
(FGIC)(A-1+/VMIG1)
4,000,000 4.15 07/07/97 4,000,000
Trust for Cultural Resource of the City of New York 1990 Series B
(VMIG1/A-1+)
800,000 4.00 07/01/97 800,000
- -------------------------------------------------------------------------------------------------
$51,800,000
- -------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NORTH CAROLINA--6.1%
Person County PCRB for Carolina Power & Light Series 1992
A(A-1/P-1)
$16,400,000 4.30% 07/07/97 $ 16,400,000
Rockingham County IDA PCRB for Philip Morris Company(A-1/P-1)
7,700,000 4.40 07/07/97 7,700,000
Wake County PCRB for Carolina Power & Light 1990 A (Fuji Bank LOC)(A-2/P-1)
18,870,000 3.80 07/09/97 18,870,000
Wake County PCRB for Carolina Power & Light 1990 B (Fuji Bank LOC)(A-2/P-1)
10,000,000 3.85 07/15/97 10,000,000
- --------------------------------------------------------------------------------------------------
$ 52,970,000
- --------------------------------------------------------------------------------------------------
OHIO--2.8%
Columbus Electric System Series 1994 RB (Union Bank of Switzerland
LOC)(VMIG1)
$12,000,000 3.70% 07/31/97 $ 12,000,000
Franklin County Hospital RB for Holy Cross Health System Series 1995(A-
1+/VMIG1)
11,000,000 4.15 07/07/97 11,000,000
Ohio State Air Quality Development Authority RB for Cincinnati Gas &
Electric Series 1995 A (ABN/AMRO Bank LOC)(A-1+/VMIG1)
400,000 4.00 07/01/97 400,000
Ohio State PCRB for Sohio Water-British Petroleum Series 1995
(A-1/P-1)
1,110,000 4.05 07/01/97 1,110,000
- --------------------------------------------------------------------------------------------------
$ 24,510,000
- --------------------------------------------------------------------------------------------------
OREGON--1.1%
Portland VRDN for Columbia Grain Inc. Project (Fuji Bank/Bank of Tokyo
LOC)(VMIG1)
$ 9,450,000 4.38% 07/07/97 $ 9,450,000
- --------------------------------------------------------------------------------------------------
PENNSYLVANIA--0.5%
Philadelphia Hospital & Higher Education Facility Authority Series 1992
B(A-1+/VMIG1)
$ 4,100,000 4.05% 07/01/97 $ 4,100,000
- --------------------------------------------------------------------------------------------------
PUERTO RICO--5.4%
Commonwealth of Puerto Rico RANS Series 1997 A(SP-1+/MIG1)
$12,500,000 4.00% 07/30/97 $ 12,505,559
Puerto Rico Government Development Bank VRDN(A-1+)
24,335,000 3.80 08/13/97 24,335,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PUERTO RICO (CONTINUED)
Puerto Rico Government Development Bank TECP(A-1+)
$10,000,000 3.90% 09/12/97 $ 10,000,000
- --------------------------------------------------------------------------------------------------
$ 46,840,559
- --------------------------------------------------------------------------------------------------
SOUTH CAROLINA--0.7%
York County Floating/Fixed Rate PCRB Pooled Series 1984-North Carolina
Electric Membership Corp. VRDN (CFC)(A-1+/MIG1)
$ 5,775,000 4.20% 07/07/97 $ 5,775,000
- --------------------------------------------------------------------------------------------------
TENNESSEE--0.4%
Blount County PCRB for Aluminum Company of America Series 1992(A-1)
$ 2,450,000 4.20% 07/07/97 $ 2,450,000
Bradley County VRDN RB for Olin Corp. Series 1993 C (Wachovia Bank of North
Carolina LOC)(A-1+)
600,000 4.00 07/01/97 600,000
- --------------------------------------------------------------------------------------------------
$ 3,050,000
- --------------------------------------------------------------------------------------------------
TEXAS--12.1%
Coastal Bend Health Facilities Development Corp. (VMIG1)
$ 1,000,000 4.30% 07/07/97 $ 1,000,000
Gulf Coast Waste Disposal Authority PCRB for Monsanto Series 1996 (P-1)
5,300,000 4.25 07/07/97 5,300,000
Harris County Health Facilities Development Corp. Series 1997 A
(A-1+/VMIG1)
2,500,000 3.70 07/29/97 2,500,000
Harris County Hospital RB for Childrens Hospital Series 1989 B-2 (VMIG1)
5,000,000 4.15 07/07/97 5,000,000
Harris County Industrial Development Corp (A-1+)
800,000 4.05 07/01/97 800,000
Harris County Toll Road VRDN Series 1994 D(A-1+/VMIG1)
9,400,000 4.05 07/07/97 9,400,000
Houston GO CP Notes Series A(A-1+/P-1)
5,000,000 3.80 09/16/97 5,000,000
Lower Colorado River Authority CP Notes Series B(A-1+/P-1)
6,000,000 3.85 07/30/97 6,000,000
San Antonio Electric & Gas Systems CP Notes Series A(A-1+/P-1)
6,200,000 3.80 08/20/97 6,200,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TEXAS (CONTINUED)
Societe Generale Municipal Securities Trust Receipts for San Antonio Texas
Electric and Gas System RB New Series 1997
SG 104/SG 105(A-1+)
$17,000,000 3.85% 08/07/97 $ 17,000,000
State of Texas TRANS Series 1996(SP-1+/MIG1)
43,420,000 4.75 08/29/97 43,481,234
West Side Calhoun County Development Corp. PCRB Series 1985
(A-1+/P-1)
2,800,000 4.15 07/01/97 2,800,000
- --------------------------------------------------------------------------------------------------
$104,481,234
- --------------------------------------------------------------------------------------------------
VIRGINIA--9.6%
Chesterfield County PCRB for Philip Morris Series 1992(A-1/P-1)
$14,700,000 4.35% 07/07/97 $ 14,700,000
Louisa PCRB for Virginia Electric & Power Series 1984(A-1/VMIG1)
4,000,000 3.85 07/15/97 4,000,000
2,000,000 3.85 07/17/97 2,000,000
4,000,000 3.80 07/23/97 4,000,000
4,000,000 3.90 08/14/97 4,000,000
1,500,000 3.90 08/20/97 1,500,000
3,900,000 3.90 08/22/97 3,900,000
Richmond VRDN Public Utility Revenue Notes Series A(A1+/VMIG1)
10,000,000 4.25 07/07/97 10,000,000
Roanoke VRDN for Carilion Health Systems Hospital Series A(A-1)
26,500,000 4.15 07/07/97 26,500,000
York County PCRB for Virginia Electric & Power Series 1985(A-1/A3)
2,900,000 3.85 07/17/97 2,900,000
9,000,000 3.75 08/13/97 9,000,000
- --------------------------------------------------------------------------------------------------
$ 82,500,000
- --------------------------------------------------------------------------------------------------
WASHINGTON--0.9%
Washington Healthcare Facility Authority VRDN for Fred Hutchinson Cancer
Research Center Series 1991 B(VMIG1)
$ 1,010,000 4.10% 07/01/97 $ 1,010,000
Washington Public Power Supply Project Electric RB Series 1993-2A (Bank of
America LOC)(A-1/VMIG1)
6,880,000 4.10 07/07/97 6,880,000
- --------------------------------------------------------------------------------------------------
$ 7,890,000
- --------------------------------------------------------------------------------------------------
WISCONSIN--0.9%
Milwaukee IDRB Multi-Modal for Pharmacia & Upjohn, Inc. Series 1994(P-1)
$ 8,000,000 4.65% 07/07/97 $ 8,000,000
- --------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE TAX-FREE MONEY MARKET FUND (continued)
June 30, 1997
(Unaudited)
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WYOMING--0.6%
Lincoln County PCRB for Pacificorp Project Series 1991 (Union Bank of
Switzerland LOC)(A-1+/VMIG1)
$ 3,000,000 3.75% 09/11/97 $ 3,000,000
400,000 3.80 09/11/97 400,000
Pacificorp PCRB VRDN for Sweetwater County Series 1990 A (Credit Suisse
LOC)(VMIG1)
1,500,000 4.05 07/07/97 1,500,000
- ------------------------------------------------------------------------------------------------
$ 4,900,000
- ------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $857,724,204(a)
- ------------------------------------------------------------------------------------------------
</TABLE>
(a)The amount stated also represents aggregate cost for federal income tax
purposes.
Interest rates represent either the stated coupon rate, annualized yield on
date of purchase for discounted notes, or, for floating rate securities, the
current reset rate, which is based upon current interest rates indices.
Maturity dates represent either the stated date on the security, the next
interest reset date for floating rate securities, or the prerefunded date for
those types of securities.
Security ratings are unaudited.
The percentages shown for each investment category reflect the value of
investments in that category as a percentage of total net assets.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT ABBREVIATIONS:
ACES --Adjustable Convertible Extendible Securities
BANS --Bond Anticipation Notes
CFC --Unconditionally Guaranteed by CFC, Cooperative Finance Corp.
COPS --Certificates of Participation
CP --Commercial Paper
FGIC --Insured by Financial Guaranty Insurance Co.
FHLB --Federal Home Loan Bank
GO --General Obligation
HFA --Housing Finance Agency
IDA --Industrial Development Authority
IDB --Industrial Development Bond
IDRB --Industrial Development Revenue Bond
LOC --Letter of Credit
MBIA --Insured by Municipal Bond Investors Assurance
MF Hsg. --Multi-Family Housing
PCRB --Pollution Control Revenue Bond
RANS --Revenue Anticipation Notes
RB --Revenue Bond
TECP --Tax Exempt Commercial Paper
TRANS --Tax Revenue Anticipation Notes
VRDN --Variable Rate Demand Note
17
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
PRIME
OBLIGATIONS MONEY MARKET
FUND FUND
---------------------------
ASSETS:
<S> <C> <C>
Investments in securities, at value based on
amortized cost $4,474,859,659 $4,606,059,517
Cash 56,418 65,970
Interest receivable 20,217,354 19,572,861
Deferred organization expenses, net -- 16,990
Other assets 265,919 141,603
- -------------------------------------------------------------------------------
TOTAL ASSETS 4,495,399,350 4,625,856,941
- -------------------------------------------------------------------------------
LIABILITIES:
Payable for investment securities
purchased -- --
Dividends payable 24,125,326 22,503,359
Accrued expenses and other liabilities 1,004,433 1,095,510
- -------------------------------------------------------------------------------
TOTAL LIABILITIES 25,129,759 23,598,869
- -------------------------------------------------------------------------------
NET ASSETS:
Paid in capital 4,470,268,862 4,602,242,978
Accumulated undistributed net investment income -- --
Accumulated undistributed net realized gain
(loss) on investments 729 15,094
- -------------------------------------------------------------------------------
NET ASSETS $4,470,269,591 $4,602,258,072
- -------------------------------------------------------------------------------
Net asset value, offering and redemption price
per share
(net assets/shares outstanding) $1.00 $1.00
- -------------------------------------------------------------------------------
SHARES OUTSTANDING:
FST shares 3,813,081,114 3,991,996,825
FST Preferred shares 240,046,253 43,756,223
FST Administration shares 295,976,966 276,148,987
FST Service shares 121,164,529 290,340,943
- -------------------------------------------------------------------------------
Total shares of beneficial interest outstanding,
$0.001 par value
(unlimited number of shares authorized) 4,470,268,862 4,602,242,978
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
TREASURY TREASURY TAX-FREE
OBLIGATIONS INSTRUMENTS GOVERNMENT FEDERAL MONEY MARKET
FUND FUND FUND FUND FUND
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$3,021,771,573 $272,328,879 $2,170,063,437 $1,042,228,217 $857,724,204
35,130 84,333 66,012 24,734 500,205
6,319,006 3,205,591 6,340,836 1,536,865 5,824,393
-- -- -- -- 31,935
140,163 26,802 7,144 75,617 3,273
- --------------------------------------------------------------------------
3,028,265,872 275,645,605 2,176,477,429 1,043,865,433 864,084,010
- --------------------------------------------------------------------------
-- -- 99,936,750 64,943,073 --
13,561,282 1,020,530 10,164,164 4,121,432 2,564,575
980,923 146,082 781,543 519,065 174,967
- --------------------------------------------------------------------------
14,542,205 1,166,612 110,882,457 69,583,570 2,739,542
- --------------------------------------------------------------------------
3,013,687,919 274,466,741 2,065,599,431 974,281,863 861,358,000
-- -- -- 2,859 --
35,748 12,252 (4,459) (2,859) (13,532)
- --------------------------------------------------------------------------
$3,013,723,667 $274,478,993 $2,065,594,972 $ 974,281,863 $861,344,468
- --------------------------------------------------------------------------
$1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------
2,140,037,970 237,434,466 1,222,438,256 714,024,245 731,787,339
2,825,740 1,500 48,896,830 1,501 5,469,429
638,279,282 1,131,506 190,743,421 137,933,257 96,498,886
232,544,927 35,899,269 603,520,924 122,322,860 27,602,346
- --------------------------------------------------------------------------
3,013,687,919 274,466,741 2,065,599,431 974,281,863 861,358,000
- --------------------------------------------------------------------------
</TABLE>
19
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
PRIME
OBLIGATIONS MONEY MARKET
FUND FUND
-------------------------
<S> <C> <C>
INVESTMENT INCOME:
Interest income $150,778,630 $123,020,722
- -----------------------------------------------------------------------------
EXPENSES:
Management fees 5,549,296 4,491,570
Custodian fees 313,951 197,162
Registration fees 209,169 168,020
Amortization of deferred organization expenses -- 4,483
Trustees' fees 32,010 20,297
Other 228,337 109,781
- -----------------------------------------------------------------------------
TOTAL EXPENSES 6,332,763 4,991,313
Less--Expenses reimbursable and fees
waived by Goldman Sachs (1,460,211) (1,047,496)
- -----------------------------------------------------------------------------
Net expenses 4,872,552 3,943,817
Preferred share fees 79,582 14,218
Administration share fees 321,986 315,070
Service share fees 320,337 845,268
- -----------------------------------------------------------------------------
NET EXPENSES AND SHARE FEES 5,594,457 5,118,373
- -----------------------------------------------------------------------------
NET INVESTMENT INCOME 145,184,173 117,902,349
- -----------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) ON INVESTMENT TRANSAC-
TIONS 13,632 24,659
- -----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERA-
TIONS $145,197,805 $117,927,008
- -----------------------------------------------------------------------------
</TABLE>
(a) Commencement date of operations for the Treasury Instruments and the
Federal Fund was March 3, 1997 and February 28, 1997, respectively.
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
TREASURY TREASURY TAX-FREE
OBLIGATIONS INSTRUMENTS GOVERNMENT FEDERAL MONEY MARKET
FUND FUND(A) FUND FUND(A) FUND
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$78,310,881 $3,909,008 $52,696,383 $12,455,299 $13,377,712
- -------------------------------------------------------------------------------------
2,940,015 151,180 1,960,199 460,458 752,437
203,827 28,274 101,930 97,389 15,852
154,721 49,274 -- 171,916 5,157
-- -- -- -- 7,727
15,506 6,575 5,991 11,457 2,554
119,636 30,811 32,242 60,914 20,928
- -------------------------------------------------------------------------------------
3,433,705 266,114 2,100,362 802,134 804,655
(852,226) (134,465) (379,211) (406,158) (143,979)
- -------------------------------------------------------------------------------------
2,581,479 131,649 1,721,151 395,976 660,676
10,143 -- 9,068 -- 5,090
730,961 773 314,524 47,126 101,011
536,935 48,176 1,166,051 77,066 54,216
- -------------------------------------------------------------------------------------
3,859,518 180,598 3,210,794 520,168 820,993
- -------------------------------------------------------------------------------------
74,451,363 3,728,410 49,485,589 11,935,131 12,556,719
- -------------------------------------------------------------------------------------
174,705 51,826 127,727 (2,859) (673)
- -------------------------------------------------------------------------------------
$74,626,068 $3,780,236 $49,613,316 $11,932,272 $12,556,046
- -------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended June 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<S> <C> <C>
PRIME
OBLIGATIONS MONEY MARKET
FUND FUND
-----------------------------
FROM OPERATIONS:
Net investment income $ 145,184,173 $ 117,902,349
Net realized gain (loss) on
investment transactions 13,632 24,659
- -----------------------------------------------------------------------------
Net increase in net assets
resulting from operations 145,197,805 117,927,008
- -----------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
FST shares (131,189,598) (102,274,186)
FST Preferred shares (4,222,876) (761,752)
FST Administration shares (6,635,324) (6,533,435)
FST Service shares (3,136,375) (8,332,976)
Net realized gain on investment
transactions
FST shares (12,652) (9,091)
FST Preferred shares (335) (81)
FST Administration shares (675) (591)
FST Service shares (331) (756)
- -----------------------------------------------------------------------------
Total distributions to shareholders (145,198,166) (117,912,868)
- -----------------------------------------------------------------------------
FROM SHARE TRANSACTIONS (AT $1.00 PER
SHARE):
Proceeds from sales of shares 28,504,262,585 32,669,134,604
Reinvestment of dividends and
distributions 64,069,452 55,880,000
Cost of shares repurchased (28,458,038,291) (31,080,788,447)
- -----------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from share transactions 110,293,746 1,644,226,157
- -----------------------------------------------------------------------------
Total increase (decrease) 110,293,385 1,644,240,297
NET ASSETS:
Beginning of period 4,359,976,206 2,958,017,775
- -----------------------------------------------------------------------------
End of period $ 4,470,269,591 $ 4,602,258,072
- -----------------------------------------------------------------------------
Accumulated undistributed net investment
income -- --
</TABLE>
- --------------------------------------------------------------------------------
(a) Commencement date of operations for the Treasury Instruments and the
Federal Fund was March 3, 1997 and February 28, 1997, respectively.
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<S> <C> <C> <C> <C>
TREASURY TREASURY TAX-FREE
OBLIGATIONS INSTRUMENTS GOVERNMENT FEDERAL MONEY MARKET
FUND FUND(A) FUND FUND(A) FUND
- --------------------------------------------------------------------------------
$ 74,451,363 $ 3,728,410 $ 49,485,589 $ 11,935,131 $ 12,556,719
174,705 51,826 127,727 (2,859) (673)
- --------------------------------------------------------------------------------
74,626,068 3,780,236 49,613,316 11,932,272 12,556,046
- --------------------------------------------------------------------------------
(54,078,253) (3,268,016) (31,359,341) (10,204,220) (10,760,679)
(525,690) (7) (482,455) (7) (165,047)
(14,710,547) (15,122) (6,376,770) (973,290) (1,312,189)
(5,136,873) (445,265) (11,267,023) (754,755) (318,804)
(155,521) (34,205) (95,927) -- --
(1,317) -- (1,268) -- --
(45,320) (195) (20,586) -- --
(16,837) (5,174) (40,889) -- --
- --------------------------------------------------------------------------------
(74,670,358) (3,767,984) (49,644,259) (11,932,272) (12,556,719)
- --------------------------------------------------------------------------------
12,940,991,607 742,388,723 9,016,688,309 2,187,239,403 3,179,706,866
28,055,275 708,003 10,542,051 3,099,430 3,171,712
(13,050,421,858) (468,629,985) (8,189,147,334) (1,216,056,970) (2,862,618,495)
- --------------------------------------------------------------------------------
(81,374,976) 274,466,741 838,083,026 974,281,863 320,260,083
- --------------------------------------------------------------------------------
(81,419,266) 274,478,993 838,052,083 974,281,863 320,259,410
3,095,142,933 -- 1,227,542,889 -- 541,085,058
- --------------------------------------------------------------------------------
$ 3,013,723,667 $ 274,478,993 $ 2,065,594,972 $ 974,281,863 $ 861,344,468
- --------------------------------------------------------------------------------
-- -- -- $ 2,859 --
</TABLE>
- --------------------------------------------------------------------------------
23
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
PRIME TREASURY TAX-FREE
OBLIGATIONS MONEY MARKET OBLIGATIONS GOVERNMENT MONEY MARKET
FUND FUND FUND FUND FUND
---------------------------------------------------
FROM OPERATIONS:
Net investment income $ 263,491,381 $ 162,277,598 $ 124,545,016 $ 65,841,904 $ 18,529,517
Net realized gain (loss)
on
investment transactions 105,304 189,110 587,091 136,538 (5,995)
- --------------------------------------------------------------------------------
Net increase in net as-
sets resulting
from operations 263,596,685 162,466,708 125,132,107 65,978,442 18,523,522
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHARE-
HOLDERS FROM:
Net investment income
FST shares (245,389,523) (149,928,272) (93,857,124) (48,867,861) (15,981,710)
FST Preferred shares (2,239,677) (162,278) (797,088) (19,753) (431,737)
FST Administration
shares (10,697,750) (9,558,151) (21,870,105) (5,023,737) (1,593,538)
FST Service shares (5,164,431) (2,628,897) (8,020,699) (11,930,553) (522,532)
Net realized gain on
investment transactions
FST shares (128,847) (173,838) (385,734) (81,682) --
FST Preferred shares (1,177) (188) (3,276) (33) --
FST Administration
shares (5,617) (11,082) (89,882) (8,397) --
FST Service shares (2,712) (3,048) (32,963) (19,942) --
- --------------------------------------------------------------------------------
Total distributions to
shareholders (263,629,734) (162,465,754) (125,056,871) (65,951,958) (18,529,517)
- --------------------------------------------------------------------------------
FROM SHARE TRANSACTIONS
(AT $1.00 PER SHARE):
Proceeds from sales of
shares 48,481,127,400 44,257,102,764 20,383,057,696 14,111,648,633 4,669,259,507
Reinvestment of
dividends and
distributions 126,514,648 91,077,089 45,060,831 21,912,928 6,495,873
Cost of shares repur-
chased (47,756,596,271) (43,600,991,427) (19,343,068,853) (13,746,823,336) (4,623,830,243)
- --------------------------------------------------------------------------------
Net increase in net
assets resulting
from share
transactions 851,045,777 747,188,426 1,085,049,674 386,738,225 51,925,137
- --------------------------------------------------------------------------------
Total increase 851,012,728 747,189,380 1,085,124,910 386,764,709 51,919,142
NET ASSETS:
Beginning of year 3,508,963,478 2,210,828,395 2,010,018,023 840,778,180 489,165,916
- --------------------------------------------------------------------------------
End of year $ 4,359,976,206 $ 2,958,017,775 $ 3,095,142,933 $ 1,227,542,889 $ 541,085,058
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
June 30, 1997
(Unaudited)
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
1.ORGANIZATION
Effective May 1, 1997, the Goldman Sachs Money Market Trust was reorganized
from a Massachusetts business trust to a Delaware business trust named the
Goldman Sachs Trust (the "Trust"). The Trust includes the Financial Square
Funds, collectively "the Funds" or individually a "Fund". The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company. Financial Square consists of nine diversified
funds: Prime Obligations, Money Market, Treasury Obligations, Treasury
Instruments, Government, Federal, Tax-Free Money Market, Municipal Money Market
(inactive as of June 30, 1997) and Premium Money Market (inactive as of June
30, 1997). The Financial Square Funds offer four classes of shares: FST shares,
FST Administration shares, FST Service shares and FST Preferred shares. The
investment objective of the Funds is to maximize current income to the extent
consistent with the preservation of capital and maintenance of liquidity.
2.SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds. The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that may affect the reported amounts.
A. Investment Valuation--
Each Fund uses the amortized-cost method for valuing portfolio securities which
approximates market value. Under this method, all investments purchased at a
discount or premium are valued by amortizing the difference between the
original purchase price and maturity value of the issue over the period to
maturity.
B. Interest Income--
Interest income is determined on the basis of interest accrued, premium
amortized and discount earned.
C. Federal Taxes--
It is each Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
each year substantially all investment company taxable and tax-exempt income to
shareholders. Accordingly, no federal tax provisions are required.
The characterization of distributions to shareholders for financial reporting
purposes is determined in accordance with federal income tax rules. Therefore,
the source of the Funds' distributions may be shown in the accompanying
financial statements as either from or in excess of net investment income or
net realized gain on investment transactions, or from paid-in capital,
depending on the type of book/tax differences that may exist.
At December 31, 1996, the Funds' tax year end, the Tax-Free Money Market Fund
had approximately $13,000 of capital loss carryforward for U.S. Federal tax
purposes. This capital loss carryforward expires in the year 2004.
D. Deferred Organization Expenses--
Organization-related costs are being amortized on a straight-line basis over a
period of five years.
E. Expenses--
Expenses incurred by the Funds that do not specifically relate to an individual
fund are allocated to the Funds based on each Fund's relative average net
assets for the period.
Shareholders of FST Preferred, FST Administration and FST Service shares bear
all expenses and fees paid to service organizations for their services with
respect to
25
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1997
(Unaudited)
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
such shares as well as other expenses (subject to expense limitations) that are
directly attributable to such shares.
3.AGREEMENTS
As of May 1, 1997, the Fund's Investment Advisory and Administration Agreements
were combined into an Investment Management Agreement (the "Agreement")
encompassing the same services and fee structure. Goldman Sachs Asset
Management ("GSAM"), a separate operating division of Goldman, Sachs & Co.
("Goldman Sachs"), manages the portfolios of the Funds, subject to general
supervision by the Trust's Board of Trustees and administers each Fund's
business affairs, including providing facilities. As compensation for the
services rendered under the Investment Management Agreement and the assumption
of the expenses related thereto, GSAM is entitled to a fee, computed daily and
payable monthly, at an annual rate equal to .205% of each Fund's average daily
net assets. These amounts are included in "Accrued expenses and other
liabilities" in the accompanying Statements of Assets and Liabilities.
For the six months ended June 30, 1997, GSAM has voluntarily agreed to waive a
portion of its management fee and limit certain of each of the Fund's expenses
(excluding management fees, service organization fees, taxes, interest,
brokerage commissions and extraordinary expenses) to the extent that such
expenses exceed .01% per annum of the Fund's average daily net assets. These
amounts are included in "Other assets" in the accompanying Statement of Assets
and Liabilities.
Goldman Sachs serves as Transfer Agent and Distributor of shares of the Funds
pursuant to Transfer Agent and Distribution Agreements and receives no fee.
The following chart outlines the fee waivers and expense reimbursements for
the six months ended June 30, 1997 and amounts owed to and due from GSAM at
June 30, 1997 (in thousands):
<TABLE>
<CAPTION>
Amounts
Management Expense Amounts due
Fees Reimburse- due to from
Fund Waived ments Total GSAM GSAM
<S> <C> <C> <C> <C> <C>
Prime
Obligations
Fund $947 $513 $1,460 $699 $231
- -------------------------------------------------------------
Money Market
Fund 767 280 1,047 710 119
- -------------------------------------------------------------
Treasury
Obligations
Fund 502 350 852 409 125
- -------------------------------------------------------------
Treasury
Instruments
Fund 27 107 134 34 27
- -------------------------------------------------------------
Government Fund 335 44 379 328 --
- -------------------------------------------------------------
Federal Fund 87 319 406 131 76
- -------------------------------------------------------------
Tax-Free Money
Market Fund 128 16 144 121 --
</TABLE>
4.ADMINISTRATION, SERVICE AND PREFERRED PLANS
The Funds have adopted Administration, Service and Preferred Plans to
compensate service organizations for providing varying levels of account
administration and shareholder liaison services to their customers who are
beneficial owners of such shares. The Preferred, Administration and Service
Plans provide for compensation to the service organizations in an amount up to
..10%, .25% and .50% (on an annualized basis), respectively, of the average
daily net asset value of the respective shares.
5.LINE OF CREDIT FACILITY
The Funds participate in a $250,000,000 uncommitted, unsecured revolving line
of credit facility to be used solely for temporary or emergency purposes. Under
the most restrictive arrangement, each Fund must own securities having a market
value in excess of 300% of the
26
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
total bank borrowings. The interest rate on the borrowings is based on the
Federal Funds rate. During the six months ended June 30, 1997, the Funds did
not have any borrowings under this facility.
6.REPURCHASE AGREEMENTS
During the term of a repurchase agreement, the value of the underlying
securities, including accrued interest, is required to equal or exceed the
value of the repurchase agreement. The underlying securities for all repurchase
agreements are held in safekeeping at a custodian.
7.JOINT REPURCHASE AGREEMENT ACCOUNTS
The Funds, together with other registered investment companies having
management agreements with GSAM or its affiliates, transfer uninvested cash
balances into joint accounts, the daily aggregate balances of which are
invested in one or more repurchase agreements. The underlying securities for
the repurchase agreements are U.S. Treasury obligations.
At June 30, 1997, the Prime Obligations, Money Market, Treasury Obligations
and Government Funds had undivided interests in the repurchase agreements in
the following joint account, which equaled $315,700,000, $79,600,000,
$650,500,000 and $361,000,000 in principal amount, respectively. At June 30,
1997, the repurchase agreements in this joint account, along with the
corresponding underlying securities (including the type of security, market
value, interest rate and maturity date), were as follows:
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS
CIBC Wood Gundy Securities, dated 06/30/97, repurchase price $32,905,438
(U.S. Treasury Note: $33,560,121, 6.375%, 03/31/01)
$32,900,000 5.95% 07/01/97 $ 32,900,000
Deutshe Bank, dated 06/30/97, repurchase price $975,165,208 (U.S. Treasury
Notes: $972,860,973, 5.00%-8.50%, 11/30/97-05/15/07; U.S. Treasury
Stripped Securities: $21,639,768, 08/15/99-02/15/07)
975,000,000 6.10 07/01/97 975,000,000
Donaldson Lufkin & Jenrette, Inc., dated 06/30/97, repurchase price
$520,085,944 (U.S. Treasury Stripped Securities: $499,717,019, 08/15/97-
05/15/07; U.S. Treasury Notes: $30,683,075, 6.125%-6.25%, 09/30/00-
02/15/07))
520,000,000 5.95 07/01/97 520,000,000
Swiss Bank Corp., dated 06/30/97, repurchase price $503,483,200 (U.S.
Treasury Notes: $480,019,868, 3.375%-9.125%, 07/31/97-01/15/07; U.S.
Treasury Bills: $34,569,420, 07/24/97-05/28/98; U.S. Treasury Bond:
$615,008, 10.75%, 08/15/05)
503,400,000 5.95 07/01/97 503,400,000
Swiss Bank Corp., dated 06/30/97, repurchase price $100,014,722 (U.S.
Treasury Notes: $95,543,523, 3.375%-9.125%, 07/31/97-01/15/07; U.S.
Treasury Bills: $6,880,724, 07/24/97-05/28/98; U.S. Treasury Bond:
$122,412, 10.75%, 08/15/05)
100,000,000 5.30 07/01/97 100,000,000
- -----------------------------------------------------------------------------------------------
Total Joint Repurchase Agreement Account $2,131,300,000
- -----------------------------------------------------------------------------------------------
</TABLE>
8.OTHER MATTERS
Pursuant to an SEC exemptive order, certain of the Funds may enter into certain
principal transactions, including repurchase agreements, with Goldman, Sachs &
Co. subject to certain limitations as follows: 25% of eligible security
transactions, as defined, and 10% of repurchase agreement transactions.
27
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
9. SUMMARY OF SHARE TRANSACTIONS
Share activity for the six months ended June 30, 1997 is as follows:
<TABLE>
<CAPTION>
PRIME TREASURY TREASURY TAX-FREE
OBLIGATIONS MONEY MARKET OBLIGATIONS INSTRUMENTS GOVERNMENT FEDERAL MONEY MARKET
FUND FUND FUND FUND FUND FUND FUND
FST SHARES:
<S> <C> <C> <C> <C> <C> <C> <C>
Shares sold 25,861,076,069 31,009,843,613 9,588,228,683 640,129,197 6,726,062,143 1,573,533,976 2,882,561,349
Reinvestment of
dividends and
distributions 59,912,303 50,520,073 18,635,046 703,538 8,376,837 2,584,933 2,457,993
Shares
repurchased (26,009,699,328) (29,608,727,868) (9,757,793,211) (403,398,269) (6,370,744,629) (862,094,664) (2,594,082,121)
- -------------------------------------------------------------------------------------------------------------------------------
(88,710,956) 1,451,635,818 (150,929,482) 237,434,466 363,694,351 714,024,245 290,937,221
- -------------------------------------------------------------------------------------------------------------------------------
FST PREFERRED
SHARES:
Shares sold 702,667,176 165,812,836 46,161,803 1,500 91,625,116 1,500 49,262,422
Reinvestment of
dividends and
distributions 176,800 467,908 611,548 0 41,460 1 76,867
Shares
repurchased (589,926,457) (140,035,071) (90,584,204) 0 (42,882,176) 0 (72,600,418)
- -------------------------------------------------------------------------------------------------------------------------------
112,917,519 26,245,673 (43,810,853) 1,500 48,784,400 1,501 (23,261,129)
- -------------------------------------------------------------------------------------------------------------------------------
FST
ADMINISTRATION
SHARES:
Shares sold 902,415,355 939,526,100 1,939,119,896 2,856,365 953,075,246 231,075,379 126,938,261
Reinvestment of
dividends and
distributions 2,104,432 4,135,993 4,689,067 4,465 1,184,462 158,912 379,940
Shares
repurchased (824,443,074) (833,277,833) (1,842,433,066) (1,729,324) (908,619,456) (93,301,034) (82,481,110)
- -------------------------------------------------------------------------------------------------------------------------------
80,076,713 110,384,260 101,375,897 1,131,506 45,640,252 137,933,257 44,837,091
- -------------------------------------------------------------------------------------------------------------------------------
FST SERVICE
SHARES:
Shares sold 1,038,103,985 553,952,055 1,367,481,225 99,401,661 1,245,925,804 382,628,548 120,944,834
Reinvestment of
dividends and
distributions 1,875,917 756,026 4,119,614 0 939,292 355,584 256,912
Shares
repurchased (1,033,969,432) (498,747,675) (1,359,611,377) (63,502,392) (866,901,073) (260,661,272) (113,454,846)
- -------------------------------------------------------------------------------------------------------------------------------
6,010,470 55,960,406 11,989,462 35,899,269 379,964,023 122,322,860 7,746,900
- -------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
shares 110,293,746 1,644,226,157 (81,374,976) 274,466,741 838,083,026 974,281,863 320,260,083
- ------------------=============================================================================================================
</TABLE>
28
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
Share activity for the year ended December 31, 1996 is as follows:
<TABLE>
<CAPTION>
TAX-FREE
PRIME OBLIGATIONS MONEY MARKET TREASURY GOVERNMENT MONEY MARKET
FUND FUND OBLIGATIONS FUND FUND FUND
FST SHARES:
<S> <C> <C> <C> <C> <C>
Shares sold 44,941,258,260 41,611,799,874 15,303,462,361 11,674,849,553 4,186,677,890
Reinvestment of
dividends and
distributions 120,569,689 84,724,371 33,617,264 19,640,980 4,879,667
Shares repurchased (44,455,790,432) (41,225,360,339) (14,633,812,470) (11,579,631,835) (4,199,081,918)
- ----------------------------------------------------------------------------------------------------------------
606,037,517 471,163,906 703,267,155 114,858,698 (7,524,361)
- ----------------------------------------------------------------------------------------------------------------
FST PREFERRED SHARES:
Shares sold 377,996,154 77,361,171 94,309,002 8,202,329 65,543,581
Reinvestment of
dividends and
distributions 6,257 76,227 473,231 7,480 322,508
Shares repurchased (250,873,677) (59,926,848) (48,145,640) (8,097,379) (37,135,531)
- ----------------------------------------------------------------------------------------------------------------
127,128,734 17,510,550 46,636,593 112,430 28,730,558
- ----------------------------------------------------------------------------------------------------------------
FST ADMINISTRATION
SHARES:
Shares sold 1,718,885,581 2,097,089,351 2,868,056,191 1,074,614,378 177,906,627
Reinvestment of
dividends and
distributions 2,721,453 5,879,304 4,640,302 1,055,828 844,377
Shares repurchased (1,653,602,695) (2,074,616,324) (2,618,986,546) (1,012,951,862) (148,027,716)
- ----------------------------------------------------------------------------------------------------------------
68,004,339 28,352,331 253,709,947 62,718,344 30,723,288
- ----------------------------------------------------------------------------------------------------------------
FST SERVICE SHARES:
Shares sold 1,442,987,405 470,852,368 2,117,230,142 1,353,982,373 239,131,409
Reinvestment of
dividends and
distributions 3,217,249 397,187 6,330,034 1,208,640 449,321
Shares repurchased (1,396,329,467) (241,087,916) (2,042,124,197) (1,146,142,260) (239,585,078)
- ----------------------------------------------------------------------------------------------------------------
49,875,187 230,161,639 81,435,979 209,048,753 (4,348)
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in shares 851,045,777 747,188,426 1,085,049,674 386,738,225 51,925,137
- -----------------------------===================================================================================
</TABLE>
29
<PAGE>
Goldman Sachs Trust--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 SIX MONTHS ENDED JUNE 30, (UNAUDITED)
- ---------------------------------------------
1997-FST
shares.......... $1.00 $0.0267 $ -- $0.0267 $(0.0267) $1.00 5.53%(b) 0.18%(b) 5.39%(b)
1997-FST Pre-
ferred Shares... 1.00 0.0262 -- 0.0262 (0.0262) 1.00 5.42(b) 0.28(b) 5.31(b)
1997-FST Admin-
istration
shares.......... 1.00 0.0255 -- 0.0255 (0.0255) 1.00 5.27(b) 0.43(b) 5.15(b)
1997-FST Service
shares.......... 1.00 0.0243 -- 0.0243 (0.0243) 1.00 5.00(b) 0.68(b) 4.90(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1996-FST
shares.......... 1.00 0.0529 -- 0.0529 (0.0529) 1.00 5.41 0.18 5.29
1996-FST Pre-
ferred
Shares (c)...... 1.00 0.0346 -- 0.0346 (0.0346) 1.00 5.28(b) 0.28(b) 5.19(b)
1996-FST Admin-
istration
shares.......... 1.00 0.0506 -- 0.0506 (0.0506) 1.00 5.14 0.43 5.06
1996-FST Service
shares.......... 1.00 0.0478 -- 0.0478 (0.0478) 1.00 4.88 0.68 4.78
1995-FST
shares.......... 1.00 0.0586 -- 0.0586 (0.0586) 1.00 6.02 0.18 5.86
1995-FST Admin-
istration
shares.......... 1.00 0.0559 -- 0.0559 (0.0559) 1.00 5.75 0.43 5.59
1995-FST Service
shares.......... 1.00 0.0533 -- 0.0533 (0.0533) 1.00 5.49 0.68 5.33
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (d)...... 1.00 0.0401 -- 0.0401 (0.0401) 1.00 4.38(b) 0.18(b) 4.38(b)
1994-FST Pre-
ferred
Shares (d)...... 1.00 0.0383 -- 0.0383 (0.0383) 1.00 4.12(b) 0.43(b) 4.18(b)
1994-FST Service
shares (d)...... 1.00 0.0364 -- 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 Admin-
istration
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 Admin-
istration
shares (e)...... 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 (e)...... 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 (F) THROUGH JANUARY 31,
- ----------------------------------------------------
1991-FST
shares.......... 1.00 0.0727 -- .0727 (0.0727) 1.00 8.27(b) 0.18(b) 8.04(b)
<CAPTION>
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
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
- ---------------------------------------------
1997-FST
shares.......... $3,813,081 0.23%(b) 5.34%(b)
1997-FST Pre-
ferred Shares... 240,047 0.33(b) 5.26(b)
1997-FST Admin-
istration
shares.......... 295,977 0.48(b) 5.10(b)
1997-FST Service
shares.......... 121,165 0.73(b) 4.85(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1996-FST
shares.......... 3,901,797 0.23 5.24
1996-FST Pre-
ferred
Shares (c)...... 127,126 0.33(b) 5.14(b)
1996-FST Admin-
istration
shares.......... 215,898 0.48 5.01
1996-FST Service
shares.......... 115,114 0.73 4.73
1995-FST
shares.......... 3,295,791 0.22 5.82
1995-FST Admin-
istration
shares.......... 147,894 0.47 5.55
1995-FST Service
shares.......... 65,278 0.72 5.29
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (d)...... 2,774,849 0.24(b) 4.32(b)
1994-FST Pre-
ferred
Shares (d)...... 66,113 0.49(b) 4.12(b)
1994-FST Service
shares (d)...... 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 Admin-
istration
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 Admin-
istration
shares (e)...... 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 (e)...... 118 0.74(b) 4.02(b)
FOR THE PERIOD MARCH 8, 1990 (F) 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 investment
at the net asset value at the end of the period.
(b)Annualized.
(c)FST Preferred share activity commenced on May 1, 1996.
(d)The information presented reflects eleven months of operations due to a
change in fiscal year end. This change was caused by the reorganization of the
funds as a series of Goldman Sachs Money Market Trust.
(e)FST Administration share and FST Service share activity commenced during
November of 1992 and January 1992, respectively.
(f)Commencement of operations.
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
Selected Data for a Share Outstanding Throughout Each Period
Money Market 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 SIX MONTHS ENDED JUNE 30, (UNAUDITED)
- ---------------------------------------------
1997-FST
shares.......... $1.00 $0.0269 $ -- $0.0269 $(0.0269) $1.00 5.57%(b) 0.18%(b) 5.44%(b)
1997-FST Pre-
ferred Shares... 1.00 0.0264 -- 0.0264 (0.0264) 1.00 5.46(b) 0.28(b) 5.36(b)
1997-FST Admin-
istration
shares.......... 1.00 0.0257 -- 0.0257 (0.0257) 1.00 5.30(b) 0.43(b) 5.18(b)
1997-FST Service
shares.......... 1.00 0.0244 -- 0.0244 (0.0244) 1.00 5.04(b) 0.68(b) 4.93(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1996-FST
shares.......... 1.00 0.0533 0.0001 0.0534 (0.0534) 1.00 5.45 0.18 5.33
1996-FST Pre-
ferred
shares (c)...... 1.00 0.0348 -- 0.0348 (0.0348) 1.00 5.31(b) 0.28(b) 5.23(b)
1996-FST Admin-
istration
shares.......... 1.00 0.0504 0.0001 0.0505 (0.0505) 1.00 5.19 0.43 5.04
1996-FST Service
shares.......... 1.00 0.0484 -- 0.0484 (0.0484) 1.00 4.93 0.68 4.84
1995-FST
Shares.......... 1.00 0.0589 -- 0.0589 (0.0589) 1.00 6.07 0.15 5.89
1995-FST Admin-
istration
shares.......... 1.00 0.0561 -- 0.0561 (0.0561) 1.00 5.80 0.40 5.61
1995-FST Service
shares (d)...... 1.00 0.0231 -- 0.0231 (0.0231) 1.00 5.41(b) 0.65(b) 4.93(b)
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (d)...... 1.00 0.0305 -- 0.0305 (0.0305) 1.00 4.91(b) 0.11(b) 4.88(b)
1994-FST Admin-
istration
shares (d)...... 1.00 0.0298 -- 0.0298 (0.0298) 1.00 4.65(b) 0.36(b) 4.82(b)
<CAPTION>
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
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
- ---------------------------------------------
1997-FST
shares.......... $3,992,002 0.23%(b) 5.39%(b)
1997-FST Pre-
ferred Shares... 43,759 0.33(b) 5.31(b)
1997-FST Admin-
istration
shares.......... 276,152 0.48(b) 5.13(b)
1997-FST Service
shares.......... 290,345 0.73(b) 4.88(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1996-FST
shares.......... 2,540,366 0.23 5.28
1996-FST Pre-
ferred
shares (c)...... 17,510 0.33(b) 5.18(b)
1996-FST Admin-
istration
shares.......... 165,766 0.48 4.99
1996-FST Service
shares.......... 234,376 0.73 4.79
1995-FST
Shares.......... 2,069,197 0.23 5.81
1995-FST Admin-
istration
shares.......... 137,412 0.48 5.53
1995-FST Service
shares (d)...... 4,219 0.73(b) 4.85(b)
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (d)...... 862,971 0.25(b) 4.74(b)
1994-FST Admin-
istration
shares (d)...... 66,560 0.50(b) 4.68(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 investment
at the net asset value at the end of the period.
(b)Annualized.
(c)FST Preferred share activity commenced on May 1, 1996.
(d)FST, FST Administration and FST Service share activity commenced May 18,
1994, May 20, 1994 and July 14, 1995, respectively.
The accompanying notes are an integral part of these financial statements.
31
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
Selected Data for a Share Outstanding Throughout Each Period
Treasury 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 (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 SIX MONTHS ENDED JUNE 30, (UNAUDITED)
- ---------------------------------------------
1997-FST
shares.......... $1.00 $0.0262 $ 0.0001 $0.0263 $(0.0263) $1.00 5.43%(b) 0.18%(b) 5.28%(b)
1997-FST Pre-
ferred shares .. 1.00 0.0257 0.0001 0.0258 (0.0258) 1.00 5.32(b) 0.28(b) 5.18(b)
1997-FST Admin-
istration shares
................. 1.00 0.0249 0.0001 0.0250 (0.0250) 1.00 5.16(b) 0.43(b) 5.03(b)
1997-FST Service
shares ......... 1.00 0.0237 0.0001 0.0238 (0.0238) 1.00 4.90(b) 0.68(b) 4.78(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1996-FST
shares.......... 1.00 0.0522 0.0003 0.0525 (0.0524) 1.00 5.35 0.18 5.22
1996-FST Pre-
ferred
shares (c)...... 1.00 0.0342 0.0001 0.0343 (0.0343) 1.00 5.24(b) 0.28(b) 5.11(b)
1996-FST Admin-
istration shares
................. 1.00 0.0497 0.0002 0.0499 (0.0498) 1.00 5.09 0.43 4.97
1996-FST Service
shares ......... 1.00 0.0472 0.0002 0.0474 (0.0474) 1.00 4.83 0.68 4.72
1995-FST shares
................. 1.00 0.0573 0.0005 0.0578 (0.0578) 1.00 5.96 0.18 5.73
1995-FST Admin-
istration shares
................. 1.00 0.0547 0.0005 0.0552 (0.0552) 1.00 5.69 0.43 5.47
1995-FST Service
shares ......... 1.00 0.0521 0.0005 0.0526 (0.0526) 1.00 5.43 0.68 5.21
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (d)...... 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 (d)...... 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 (d)...... 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 (e)...... 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 (e)...... 1.00 0.0113 0.0006 0.0119 (0.0116) 1.00 4.47(b) 0.68(b) 3.77(b)
FOR THE PERIOD MARCH 5, 1990(F) 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
-------------------------
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
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
- ---------------------------------------------
1997-FST
shares.......... $2,140,063 0.24%(b) 5.22%(b)
1997-FST Pre-
ferred shares .. 2,826 0.34(b) 5.12(b)
1997-FST Admin-
istration shares
................. 638,287 0.49(b) 4.97(b)
1997-FST Service
shares ......... 232,548 0.74(b) 4.72(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1996-FST
shares.......... 2,291,051 0.24 5.16
1996-FST Pre-
ferred
shares (c)...... 46,637 0.34(b) 5.05(b)
1996-FST Admin-
istration shares
................. 536,895 0.49 4.91
1996-FST Service
shares ......... 220,560 0.74 4.66
1995-FST shares
................. 1,587,715 0.23 5.68
1995-FST Admin-
istration shares
................. 283,186 0.48 5.42
1995-FST Service
shares ......... 139,117 0.73 5.16
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (d)...... 958,196 0.25(b) 4.06(b)
1994-FST Admin-
istration
shares (d)...... 82,124 0.50(b) 4.17(b)
1994-FST Service
shares (d)...... 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 (e)...... 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 (e)...... 3,634 0.78 3.67(b)
FOR THE PERIOD MARCH 5, 1990(F) 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 investment
at the net asset value at the end of the period.
(b)Annualized.
(c)FST Preferred share activity commenced May 1, 1996.
(d)The information presented reflects eleven months of operations due to a
change in fiscal year end. This change was caused by the reorganization of the
funds as a series of Goldman Sachs Money Market Trust.
(e)FST Administration and PST Service share activity commenced during January
of 1993 and October of 1991, respectively.
(f)Commencement of operations.
The accompanying notes are an integral part of these financial statements.
32
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
Selected Data for a Share Outstanding Throughout Each Period
Treasury Instruments 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 JUNE 30, (UNAUDITED)
- -----------------------------------------
1997-FST
shares(c)....... $1.00 $ 0.0168 $ 0.0002 $ 0.0170 $(0.0170) $1.00 5.29%(b) 0.18%(b) 5.12%(b)
1997-FST Pre-
ferred Shares
(c)............. 1.00 0.0043 0.0002 0.0045 (0.0045) 1.00 5.19(b) 0.28(b) 5.04(b)
1997-FST Admin-
istration shares
(c)............. 1.00 0.0122 0.0002 0.0124 (0.0124) 1.00 5.06(b) 0.43(b) 4.89(b)
1997-FST Service
shares (c)...... 1.00 0.0150 0.0002 0.0152 (0.0152) 1.00 4.73(b) 0.68(b) 4.63(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 JUNE 30, (UNAUDITED)
- -----------------------------------------
1997-FST
shares(c)....... $237,444 0.36%(b) 4.94%(b)
1997-FST Pre-
ferred Shares
(c)............. 2 0.46(b) 4.86(b)
1997-FST Admin-
istration shares
(c)............. 1,132 0.61(b) 4.71(b)
1997-FST Service
shares (c)...... 35,901 0.86(b) 4.45(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
investment at the net asset value at the end of the period.
(b) Annualized.
(c) FST Share, FST Preferred Share, FST Administration Share, and FST Service
Share activity commenced March 3, 1997, May 30, 1997, April 1, 1997, and
March 5, 1997, respectively.
The accompanying notes are an integral part of these financial statements.
33
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
Selected Data for a Share Outstanding Throughout Each Period
Government 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 SIX MONTHS ENDED JUNE 30, (UNAUDITED)
- ---------------------------------------------
1997-FST
shares.......... $1.00 $ 0.0264 $0.0001 $ 0.0265 $(0.0265) $1.00 5.47%(b) 0.18%(b) 5.33%(b)
1997-FST Pre-
ferred shares... 1.00 0.0259 0.0001 0.0260 (0.0260) 1.00 5.37(b) 0.28(b) 5.32(b)
1997-FST Admin-
istration
shares.......... 1.00 0.0251 0.0001 0.0252 (0.0252) 1.00 5.21(b) 0.43(b) 5.07(b)
1997-FST Service
shares.......... 1.00 0.0239 0.0001 0.0240 (0.0240) 1.00 4.95(b) 0.68(b) 4.83(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1996-FST
shares.......... 1.00 0.0525 0.0001 0.0526 (0.0526) 1.00 5.38 0.18 5.25
1996-FST Pre-
ferred
shares (c)...... 1.00 0.0344 0.0001 0.0345 (0.0345) 1.00 5.26(b) 0.28(b) 5.14(b)
1996-FST Admin-
istration
shares.......... 1.00 0.0501 0.0001 0.0502 (0.0502) 1.00 5.12 0.43 5.01
1996-FST Service
shares.......... 1.00 0.0474 0.0001 0.0475 (0.0475) 1.00 4.86 0.68 4.74
1995-FST
shares.......... 1.00 0.0581 0.0001 0.0582 (0.0582) 1.00 6.00 0.18 5.81
1995-FST Admin-
istration
shares.......... 1.00 0.0554 0.0001 0.0555 (0.0555) 1.00 5.74 0.43 5.54
1995-FST Service
shares (d)...... 1.00 0.0320 -- 0.0320 (0.0320) 1.00 5.40(b) 0.68(b) 5.08(b)
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (e)...... 1.00 0.0424 -- 0.0424 (0.0424) 1.00 4.36(b) 0.15(b) 4.64(b)
1994-FST Admin-
istration
shares (e)...... 1.00 0.0426 -- 0.0426 (0.0426) 1.00 4.10(b) 0.40(b) 4.67(b)
FOR THE PERIOD ENDED JANUARY 31,
- --------------------------------
1994-FST
shares (d)...... 1.00 0.0256 0.0001 0.0257 (0.0257) 1.00 3.14(b) 0.08(b) 3.10(b)
1994-FST Admin-
istration
shares (d)...... 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 RATIO OF NET
ASSETS AT RATIO OF INVESTMENT
END EXPENSES TO INCOME TO
OF PERIOD AVERAGE NET AVERAGE NET
(IN 000'S) ASSETS ASSETS
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
- ---------------------------------------------
1997-FST
shares.......... $1,222,437 0.22%(b) 5.29%(b)
1997-FST Pre-
ferred shares... 48,896 0.32(b) 5.28(b)
1997-FST Admin-
istration
shares.......... 190,742 0.47(b) 5.03(b)
1997-FST Service
shares.......... 603,520 0.72(b) 4.79(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1996-FST
shares.......... 858,769 0.24 5.19
1996-FST Pre-
ferred
shares (c)...... 112 0.34(b) 5.08(b)
1996-FST Admin-
istration
shares.......... 145,108 0.49 4.95
1996-FST Service
shares.......... 223,554 0.74 4.68
1995-FST
shares.......... 743,884 0.24 5.75
1995-FST Admin-
istration
shares.......... 82,386 0.49 5.48
1995-FST Service
shares (d)...... 14,508 0.74(b) 5.02(b)
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (e)...... 258,350 0.25(b) 4.54(b)
1994-FST Admin-
istration
shares (e)...... 54,253 0.50(b) 4.57(b)
FOR THE PERIOD ENDED JANUARY 31,
- --------------------------------
1994-FST
shares (d)...... 44,697 0.59(b) 2.59(b)
1994-FST Admin-
istration
shares (d)...... 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 complete redemption of the investment at
the net asset value at the end of the period.
(b)Annualized.
(c)FST Preferred share activity commenced on May 1, 1996.
(d)FST share, FST Administration share and FST Service share activity
commenced April 6, 1993, September 1, 1993 and May 16, 1995, respectively.
(e)The information presented reflects eleven months of operations due to a
change in fiscal year end. This change was caused by the reorganization of the
funds as a series of Goldman Sachs Money Market Trust.
The accompanying notes are an integral part of these financial statements.
34
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
Selected Data for a Share Outstanding Throughout Each Period
Federal 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 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 JUNE 30,
(UNAUDITED)
- -----------------------------
1997-FST
shares(c)....... $1.00 $ 0.0178 -- $ 0.0178 $ (0.0178) $1.00 5.47%(b) 0.18%(b) 5.36%(b)
1997-FST Pre-
ferred
shares(c)....... 1.00 0.0047 -- 0.0047 (0.0047) 1.00 5.46(b) 0.28(b) 5.28(b)
1997-FST
Administration
shares(c)....... 1.00 0.0128 -- 0.0128 (0.0128) 1.00 5.25(b) 0.43(b) 5.17(b)
1997-FST Service
shares(c)....... 1.00 0.0131 -- 0.0131 (0.0131) 1.00 4.99(b) 0.68(b) 4.90(b)
<CAPTION>
RATIOS ASSUMING NO
WAIVER OF FEES AND NO
NET EXPENSE LIMITATIONS
ASSETS -------------------------
AT END RATIO OF NET
OF RATIO OF INVESTMENT
PERIOD EXPENSES TO INCOME TO
(IN AVERAGE NET AVERAGE NET
000'S) ASSETS ASSETS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FOR THE PERIOD ENDED JUNE 30,
(UNAUDITED)
- -----------------------------
1997-FST
shares(c)....... $714,024 0.36%(b) 5.18%(b)
1997-FST Pre-
ferred
shares(c)....... 2 0.46(b) 5.10(b)
1997-FST
Administration
shares(c)....... 137,933 0.61(b) 4.99(b)
1997-FST Service
shares(c)....... 122,323 0.86(b) 4.72(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 investment
at the net asset value at the end of the period.
(b) Annualized.
(c) FST share, FST Preferred share, FST Administration share, and FST Service
share activity commenced February 28, 1997, May 30, 1997, April 1, 1997 and
March 25, 1997, respectively.
The accompanying notes are an integral part of these financial statements.
35
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
Selected Data for a Share Outstanding Throughout Each Period
Tax-Free Money Market 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 SIX MONTHS ENDED JUNE 30, (UNAUDITED)
- ---------------------------------------------
1997-FST
shares.......... $1.00 $0.0170 -- $0.0170 $(0.0170) $1.00 3.49%(b) 0.18%(b) 3.46%(b)
1997-FST Pre-
ferred shares... 1.00 0.0165 -- 0.0165 (0.0165) 1.00 3.39(b) 0.28(b) 3.24(b)
1997-FST Admin-
istration
shares.......... 1.00 0.0158 -- 0.0158 (0.0158) 1.00 3.23(b) 0.43(b) 3.25(b)
1997-FST Service
shares.......... 1.00 0.0146 -- 0.0146 (0.0146) 1.00 2.97(b) 0.68(b) 2.94(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1996-FST
shares.......... 1.00 0.0335 -- 0.0335 (0.0335) 1.00 3.39 0.18 3.35
1996-FST Pre-
ferred shares... 1.00 0.0218 -- 0.0218 (0.0218) 1.00 3.30(b) 0.28(b) 3.26(b)
1996-FST Admin-
istration
shares (c)...... 1.00 0.0310 -- 0.0310 (0.0310) 1.00 3.13 0.43 3.10
1996-FST Service
shares.......... 1.00 0.0285 -- 0.0285 (0.0285) 1.00 2.88 0.68 2.85
1995-FST
shares.......... 1.00 0.0381 -- 0.0381 (0.0381) 1.00 3.89 0.14 3.81
1995-FST Admin-
istration
shares.......... 1.00 0.0354 -- 0.0354 (0.0354) 1.00 3.63 0.39 3.54
1995-FST Service
shares.......... 1.00 0.0332 -- 0.0332 (0.0332) 1.00 3.38 0.64 3.32
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (d)...... 1.00 0.0156 -- 0.0156 (0.0156) 1.00 3.41(b) 0.07(b) 3.42(b)
1994-FST Admin-
istration
shares (d)...... 1.00 0.0136 -- 0.0136 (0.0136) 1.00 3.19(b) 0.32(b) 3.25(b)
1994-FST Service
shares (d)...... 1.00 0.0091 -- 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
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 SIX MONTHS ENDED JUNE 30, (UNAUDITED)
- ---------------------------------------------
1997-FST
shares.......... $731,783 0.22%(b) 3.42%(b)
1997-FST Pre-
ferred shares... 5,468 0.32(b) 3.20(b)
1997-FST Admin-
istration
shares.......... 96,496 0.47(b) 3.21(b)
1997-FST Service
shares.......... 27,597 0.72(b) 2.90(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1996-FST
shares.......... 440,838 0.23 3.30
1996-FST Pre-
ferred shares... 28,731 0.33(b) 3.21(b)
1996-FST Admin-
istration
shares (c)...... 51,661 0.48 3.05
1996-FST Service
shares.......... 19,855 0.73 2.80
1995-FST
shares.......... 448,367 0.24 3.71
1995-FST Admin-
istration
shares.......... 20,939 0.49 3.44
1995-FST Service
shares.......... 19,860 0.74 3.22
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (d)...... 183,570 0.31(b) 3.18(b)
1994-FST Admin-
istration
shares (d)...... 2,042 0.56(b) 3.01(b)
1994-FST Service
shares (d)...... 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 investment
at the net asset value at the end of the period.
(b)Annualized.
(c)FST Preferred share activity commenced on May 1, 1996.
(d)FST share, FST Administration share and FST Service share activity
commenced July 19, 1994, August 1, 1994 and September 23, 1994, respectively.
The accompanying notes are an integral part of these financial statements.
36
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
[This page intentionally left blank]
37
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
- --------------------------------------- ---------------------------------------
[This page intentionally left blank]
38
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
- --------------------------------------------------------------------------------
This Semiannual Report is authorized for distribution to prospective investors
only when preceded or accompanied by a Goldman Sachs Trust Financial Square
Funds Prospectus which contains facts concerning each Fund's objectives and
policies, management, expenses and other information.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
Goldman Sachs
1 New York Plaza
New York, NY 10004
TRUSTEES
Ashok N. Bakhru, Chairman
David B. Ford
Douglas C. Grip
John P. McNulty
Mary P. McPherson
Alan A. Shuch
Jackson W. Smart, Jr.
William H. Springer
Richard P. Strubel
OFFICERS
Douglas C. Grip, President
John W. Mosior, Vice President
Nancy L. Mucker, Vice President
Scott M. Gilman, Treasurer
John M. Perlowski, Assistant Treasurer
Michael J. Richman, Secretary
Howard B. Surloff, Assistant Secretary
GOLDMAN SACHS
Investment Adviser,
Distributor and Transfer Agent
FS/SAR 6/97
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GOLDMAN SACHS
TRUST
FINANCIAL SQUARE
FUNDS
- --------------------------------------------------------------------------------
SEMIANNUAL REPORT
JUNE 30, 1997
PRIME OBLIGATIONS FUND
MONEY MARKET FUND
TREASURY OBLIGATIONS FUND
TREASURY INSTRUMENTS FUND
GOVERNMENT FUND
FEDERAL FUND
TAX-FREE MONEY MARKET FUND
[LOGO] GOLDMAN SACHS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
