<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Goldman Sachs Trust
FINANCIAL SQUARE FUNDS
o Prime Obligations Fund
o Money Market Fund
o Premium Money Market Fund
o Treasury Obligations Fund
o Treasury Instruments Fund
o Government Fund
o Federal Fund
o Tax-Free Money Market Fund
SEMIANNUAL REPORT Goldman
June 30, 1998 Sachs
[LOGO]
<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 PREMIUM MONEY MARKET FUND. A diversified money market
portfolio which invests in securities of the U.S. Government, its agencies,
authorities and instrumentalities, U.S. dollar denominated obligations of U.S.
and foreign banks, U.S. dollar denominated commercial paper and other short-
term obligations of U.S. and foreign companies, foreign governments, states,
municipalities and other entities, and repurchase agreements.
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 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 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, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
COMMERCIAL PAPER AND CORPORATE OBLIGATIONS--29.9%
BANK HOLDING COMPANIES
BankAmerica Corp.
$100,000,000 5.50% 07/06/98 $ 99,923,613
Bankers Trust Securities Corp.
15,000,000 5.43 09/02/98 14,857,463
Ford Motor Credit Company
40,000,000 5.49 07/24/98 39,859,700
BUSINESS CREDIT INSTITUTIONS
CIT Group Holdings, Inc.
20,000,000 6.50 07/13/98 20,005,027
General Electric Capital Corp.
35,000,000 5.43 08/24/98 34,714,925
75,000,000 5.43 08/26/98 74,366,500
100,000,000 5.53 09/02/98 99,032,250
17,000,000 5.54 09/08/98 16,819,488
COMMERCIAL BANKS
CP Trust Certificates Series 1996-1
85,000,000 5.84 03/30/99 85,000,000
LIFE INSURANCE
Prudential Funding Corp.
50,000,000 5.52 09/09/98 49,463,333
Prudential Insurance Company of America
35,000,000 5.51 08/28/98 34,689,297
RECEIVABLE/ASSET FINANCINGS
Asset Portfolio Funding
35,000,000 5.53 07/09/98 34,956,989
Corporate Receivables Corp.
50,000,000 5.54 07/06/98 49,961,528
50,000,000 5.53 07/22/98 49,838,708
Enterprise Funding Corp.
95,939,000 5.53 07/08/98 95,835,839
14,975,000 5.53 07/09/98 14,956,597
46,677,000 5.52 08/17/98 46,340,614
27,886,000 5.52 08/19/98 27,676,483
Falcon Asset Securitization Corp.
28,850,000 5.53 07/20/98 28,765,798
29,375,000 5.52 08/17/98 29,163,304
15,405,000 5.51 08/25/98 15,275,320
Park Avenue Receivables Corp.
9,351,000 5.55 08/20/98 9,278,919
Receivables Capital Corp.
42,128,000 5.53 07/22/98 41,992,102
Riverwoods Funding Corp.
50,000,000 5.52 09/15/98 49,417,333
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
COMMERCIAL PAPER AND CORPORATE OBLIGATIONS (CONTINUED)
RECEIVABLE/ASSET FINANCINGS (CONTINUED)
WCP Funding Corp.
$ 5,000,000 5.53% 07/15/98 $ 4,989,247
15,000,000 5.52 07/22/98 14,951,700
25,000,000 5.53 07/22/98 24,919,354
40,550,000 5.54 09/04/98 40,144,387
SECURITY AND COMMODITY BROKERS, DEALERS AND SERVICES
Bear Stearns Companies, Inc.
100,000,000 5.53 07/29/98 99,570,278
75,000,000 5.53 09/02/98 74,274,188
10,000,000 5.51 09/08/98 9,894,392
JP Morgan Securities, Inc
40,000,000 5.51 09/14/98 39,540,833
50,000,000 5.63 10/05/98 50,000,000
Salomon Smith Barney Holdings, Inc.
80,000,000 5.47 07/13/98 79,854,133
- ------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER AND CORPORATE OBLIGATIONS $1,500,329,642
- ------------------------------------------------------------------------------------------------
BANK NOTES--11.5%
BankBoston, N.A.
$ 25,000,000 5.72% 07/06/98 $ 25,000,000
50,000,000 5.74 04/15/99 49,984,886
FCC National Bank
60,000,000 6.01 07/06/98 59,999,765
First National Bank of Boston, N.A.
50,000,000 5.99 08/13/98 50,000,000
25,000,000 5.97 10/21/98 25,000,000
First Tennessee Bank, N.A.
40,000,000 5.65 03/02/99 39,987,165
50,000,000 5.82 04/30/99 49,976,171
First Union National Bank
50,000,000 5.56 09/21/98 50,000,000
Greenwood Trust Co.
45,000,000 5.59 08/18/98 45,000,000
Huntington National Bank
50,000,000 5.82 11/13/98 49,992,921
JP Morgan Securities, Inc.
50,000,000 5.75 03/10/99 50,000,000
Merrill Lynch & Co., Inc.
45,000,000 5.97 08/14/98 45,000,000
PNC Bank, N.A.
35,000,000 5.71 04/26/99 34,983,527
- ------------------------------------------------------------------------------------------------
TOTAL BANK NOTES $ 574,924,435
- ------------------------------------------------------------------------------------------------
</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>
- ---------------------------------------------------------------------------------------------
CORPORATE BONDS--3.0%
Dakota Certificates of Standard Credit Card
Master Trust
$ 40,000,000 5.54% 07/06/98 $ 39,969,222
10,000,000 5.55 07/06/98 9,992,292
40,000,000 5.51 07/23/98 39,865,311
25,000,000 5.51 09/09/98 24,732,153
35,000,000 5.51 09/10/98 34,619,657
- ---------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS $ 149,178,635
- ---------------------------------------------------------------------------------------------
TAXABLE MUNICIPAL NOTES--0.3%
Ocean Spray Cranberries, Inc.
$ 15,000,000 5.66% 07/01/98 $ 15,000,000
- ---------------------------------------------------------------------------------------------
TOTAL TAXABLE MUNICIPAL NOTES $ 15,000,000
- ---------------------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES(A)--35.5%
Allmerica Funding
$ 25,000,000 5.77% 05/10/99 $ 25,000,000
Bank One Texas
75,000,000 5.47 07/01/98 75,000,000
Caterpillar Financial Services Corp.
50,000,000 5.66 03/26/99 50,016,955
Comerica Bank Detroit
150,000,000 5.55 06/10/99 149,902,907
Commonwealth Life Insurance Co.
55,000,000 5.81 05/06/99 55,000,000
Corestates Bank, N.A.
45,000,000 5.65 07/30/98 45,000,000
25,000,000 5.61 01/28/99 25,000,000
40,000,000 5.60 04/23/99 40,000,000
FCC National Bank
40,000,000 5.32 07/28/98 39,997,702
First National Bank of Chicago
40,000,000 5.52 06/02/99 39,972,855
First Tennessee Bank, N.A.
30,000,000 5.57 04/23/99 29,988,079
First U.S.A. Bank
15,000,000 5.66 02/01/99 15,030,391
JP Morgan Securities, Inc.
30,000,000 5.61 04/05/99 29,993,294
50,000,000(b) 5.55 07/07/99 49,970,750
Keybank N.A.
100,000,000 5.57 02/22/99 99,965,500
19,500,000 5.61 08/03/98 19,499,913
30,000,000 5.61 10/09/98 29,999,194
25,000,000 5.61 01/25/99 25,000,000
25,000,000 5.61 01/29/99 25,000,000
50,000,000 5.61 03/16/99 50,000,000
28,250,000 5.94 04/29/99 28,321,168
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES (CONTINUED)
Morgan Stanley Dean Witter
$ 20,000,000 5.41% 08/03/98 $ 20,001,448
60,000,000 5.62 11/20/98 60,000,000
80,000,000 5.61 01/19/99 80,000,000
Nationsbank Corp.
25,000,000 5.64 12/14/98 25,000,000
New York Life Insurance Co.
40,000,000 5.67 12/03/98 40,000,000
25,000,000 5.67 03/23/99 25,000,000
Old Kentucky Bank & Trust Co.
35,000,000 5.60 04/30/99 34,985,786
Pacific Mutual Life Insurance Co.
50,000,000 5.64 03/01/99 50,000,000
PNC Bank, N.A.
75,000,000 5.75 07/17/98 74,997,780
100,000,000 5.53 07/02/99 99,926,159
Seattle Washington Tax Series 1994
25,000,000 5.68 07/01/98 25,000,000
SMM Trust Series 1997- X
35,000,000 5.66 12/14/98 35,000,000
Southtrust Bank of Alabama, N.A.
45,000,000 5.56 09/08/98 44,995,820
40,000,000 5.57 04/21/99 39,984,213
100,000,000 5.54 06/14/99 99,939,095
Texas State Vet Series 1996 A
14,255,000 5.68 07/01/98 14,255,000
U.S. Bank, N.A.
65,000,000 5.54 06/16/99 64,963,155
- ------------------------------------------------------------------------------------------------
TOTAL VARIABLE RATE DEMAND NOTES $1,781,707,164
- ------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT--9.2%
Bank of America National Trust & Savings
Association
$ 55,250,000 5.63% 02/26/99 $ 55,229,105
Bankers Trust Securities Corp.
40,000,000 5.72 03/30/99 39,988,578
50,000,000 5.77 05/21/99 49,974,106
Chase Manhattan Bank
180,000,000 5.62 07/07/98 180,000,000
Crestar Bank
100,000,000 5.57 08/24/98 100,000,000
Mellon Bank, N.A.
35,000,000 5.57 09/08/98 35,000,000
- ------------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT $ 460,191,789
- ------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
3
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE PRIME OBLIGATIONS FUND (continued)
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--11.5%
Joint Repurchase Agreement Account(c)
$176,300,000 5.90% 07/01/98 $ 176,300,000
Joint Repurchase Agreement Account II
400,000,000 5.83 07/01/98 400,000,000
- ----------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $ 576,300,000
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $5,057,631,665(d)
</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) When-issued security.
(c) A portion of this security is being segregated for a when-issued security.
(d) 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.
4
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE MONEY MARKET FUND
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER AND CORPORATE OBLIGATIONS--29.0%
BANK HOLDING COMPANIES
Banca CRT Financial Corp.
$ 9,000,000 5.48% 08/31/98 $ 8,916,430
20,000,000 5.47 09/01/98 19,810,900
10,000,000 5.47 09/08/98 9,895,158
10,000,000 5.47 09/15/98 9,884,522
Banque Et Caisse Epargne
50,000,000 5.46 07/07/98 49,954,500
BCI Funding Corp.
50,000,000 5.51 09/08/98 49,471,958
Den Danske Bank Corp.
50,000,000 5.51 07/07/98 49,954,083
Generale Bank, Inc.
20,000,000 5.52 07/07/98 19,981,600
9,550,000 5.45 09/02/98 9,458,917
IMI Funding Corp., U.S.A.
22,070,000 5.55 07/01/98 22,070,000
39,254,000 5.47 09/03/98 38,872,277
Lloyds Bank PLC
50,000,000 5.47 07/07/98 49,954,417
Rose One Plus
39,348,000 5.54 07/28/98 39,184,509
40,000,000 5.55 07/29/98 39,827,333
51,874,000 5.55 09/01/98 51,378,171
65,861,000 5.55 09/03/98 65,211,171
Unifunding, Inc.
50,000,000 5.45 09/09/98 49,470,139
Westpac Capital Corp.
20,000,000 5.47 07/07/98 19,981,767
BUSINESS CREDIT INSTITUTIONS
Eksportfinans
30,000,000 5.47 07/02/98 29,995,442
General Electric Capital Corp.
50,000,000 5.53 09/02/98 49,516,125
50,000,000 5.54 09/08/98 49,469,083
Siemens Capital Corp.
25,000,000 5.46 07/09/98 24,969,667
COMMERCIAL BANKS
CP Trust Certificates Series 1996-1
60,000,000 5.84(a) 03/30/99 60,000,000
CP Trust Certificates Series 1996-2
50,000,000 5.87(a) 12/28/98 50,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER AND CORPORATE OBLIGATIONS (CONTINUED)
FOOD PRODUCTS
Diageo Capital PLC
$ 35,000,000 5.47% 08/26/98 $ 34,702,189
LIFE INSURANCE
General Electric Financial Assurance Holdings
25,000,000 5.50 07/08/98 24,973,264
RECEIVABLE/ASSET FINANCINGS
CC USA, Inc.
7,000,000 5.55 07/15/98 6,984,892
40,000,000 5.51 09/03/98 39,608,178
Corporate Receivables Corp.
50,000,000 5.52 09/10/98 49,455,667
Edison Asset Securitization Corp.
15,981,000 5.55 09/10/98 15,806,075
Four Winds Funding
13,122,000 5.53 07/21/98 13,081,686
75,000,000 5.53 09/15/98 74,124,417
Receivables Capital Corp.
20,589,000 5.52 07/23/98 20,519,546
Riverwoods Funding Corp.
50,000,000 5.53 07/22/98 49,838,708
50,000,000 5.52 09/15/98 49,417,333
WCP Funding, Inc.
45,000,000 5.53 07/15/98 44,903,225
Windmill Funding
40,000,000 5.52 09/15/98 39,533,867
SECURITY AND COMMODITY BROKERS, DEALERS AND SERVICES
Bear Stearns Companies, Inc.
50,000,000 5.53 07/29/98 49,785,139
37,000,000 5.52 09/15/98 36,568,827
JP Morgan Securities, Inc.
50,000,000 5.63 10/05/98 50,000,000
- ------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER AND CORPORATE OBLIGATIONS $1,466,531,182
- ------------------------------------------------------------------------------------------------
BANK NOTES--4.1%
Bank of Western Australia Ltd.
$ 30,000,000 5.65% 02/19/99 $ 29,987,976
BankBoston, N.A.
35,000,000 5.72 07/06/98 35,000,000
First National Bank of Boston, N.A.
25,000,000 6.00 08/17/98 25,000,000
</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, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BANK NOTES (CONTINUED)
Huntington National Bank
$ 7,000,000 5.82% 11/13/98 $ 6,999,009
JP Morgan Securities, Inc.
45,000,000 5.75 03/10/99 45,000,000
Merrill Lynch & Co., Inc.
10,000,000 5.97 08/14/98 10,000,000
National Australia Bank Ltd.
26,000,000 5.85 10/05/98 25,997,811
Svenska Handelsbanken
30,000,000 5.69 09/08/98 30,002,638
- ------------------------------------------------------------------------------------------------
TOTAL BANK NOTES $ 207,987,434
- ------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - FOREIGN EURODOLLAR--0.5%
Abbey National Treasury Services
$ 25,000,000 5.86% 11/12/98 $ 25,000,000
- ------------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT - FOREIGN EURODOLLAR $ 25,000,000
- ------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - YANKEEDOLLAR--10.2%
Bank Austria, New York
$ 25,000,000 5.71% 06/07/99 $ 24,978,759
Credit Agricole Indosuez, New York
60,000,000 5.95 08/13/98 59,996,622
15,000,000 5.74 04/26/99 14,992,942
Creditanstalt, New York
50,000,000 5.85 05/03/99 49,979,956
Istituto Bancario, New York
10,000,000 5.81 10/07/98 10,001,008
National Bank of Canada, New York
45,000,000 5.76 06/10/99 44,975,637
Societe Generale, New York
25,000,000 5.91 10/20/98 24,993,097
50,000,000 5.73 03/08/99 49,986,883
30,000,000 5.71 03/29/99 29,991,467
30,000,000 5.63 04/06/99 29,961,235
35,000,000 5.76 04/16/99 34,989,385
Swiss Bank Corp., New York
100,000,000 5.71 07/02/98 100,000,155
15,000,000 5.74 06/09/99 14,991,901
Westpac Banking Corp., New York
25,000,000 5.77 05/12/99 24,987,608
- ------------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT -YANKEEDOLLAR $ 514,826,655
- ------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TAXABLE MUNICIPAL NOTES--1.1%
Florida Housing Finance Authority
$ 28,100,000 5.61%(a) 07/07/98 $ 28,100,000
Illinois Health & Education Facilities Authority for Elmhurst Memorial
Series 1998 B
29,400,000 5.80 07/07/98 29,400,000
- -----------------------------------------------------------------------------------------------
TOTAL TAXABLE MUNICIPAL NOTES $ 57,500,000
- -----------------------------------------------------------------------------------------------
TIME DEPOSIT--9.9%
FCC National Bank(c)
$200,000,000 6.00% 07/01/98 $ 200,000,000
Keybank, N.A.
200,000,000 6.00 07/01/98 200,000,000
Swede Bank
100,000,000 6.00 07/01/98 100,000,000
- -----------------------------------------------------------------------------------------------
TOTAL TIME DEPOSIT $ 500,000,000
- -----------------------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES(A)--44.7%
Abbey National Treasury Services
$ 25,000,000 5.48% 06/01/99 $ 24,975,119
Allmerica Funding
25,000,000 5.77 05/10/99 25,000,000
Banca CRT Financial Corp.
20,000,000 5.59 07/01/99 19,990,538
25,000,000 5.59 07/02/99 24,988,152
Bank of Austria, New York
50,000,000 5.53 06/04/99 49,968,052
Bank of Scotland Treasury Services
50,000,000 5.56 09/22/98 49,995,102
Barclays Bank PLC
125,000,000 5.52 06/02/99 124,912,925
Bayerische Landesbank
75,000,000 5.52 06/29/99 74,945,013
Bear Stearns Companies, Inc.(b)
45,000,000 5.78 09/18/98 45,016,245
Comerica Bank Detroit
50,000,000 5.54 07/17/98 49,998,705
12,000,000 5.55 09/11/98 11,998,510
Corestates Bank, N.A.
25,000,000 5.61 01/28/99 25,000,000
Dauphin Deposit Bank & Trust
50,000,000 5.61 07/14/98 50,000,070
15,000,000 5.63 08/04/98 14,999,457
Den Danske Bank Corp.
30,000,000 5.60 03/25/99 29,997,902
20,000,000(b) 5.56 07/02/99 19,990,152
</TABLE>
- --------------------------------------- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
6
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
VARIABLE RATE DEMAND NOTES (CONTINUED)
FCC National Bank
$ 40,000,000 5.32% 07/28/98 $ 39,997,702
First Tennessee Bank, N.A.
30,000,000 5.57 04/23/99 29,988,079
First U.S.A. Bank
10,000,000 5.99 09/10/98 10,006,873
General Electric Capital Corp.
75,000,000 5.61 11/09/98 75,000,000
Istituto Bancario, New York
85,000,000 5.54 04/14/99 84,967,317
100,000,000 5.57 05/24/99 99,938,485
20,000,000 5.56 06/08/99 19,987,130
JP Morgan Securities, Inc.
20,000,000 5.61 04/05/99 19,995,529
75,000,000(b) 5.55 07/07/99 74,956,125
Keybank N.A.
35,000,000 5.57 02/22/99 34,987,925
Merrill Lynch & Co., Inc.
50,000,000 5.60 01/19/99 50,000,000
70,000,000 5.61 01/25/99 70,000,000
25,000,000 5.61 01/29/99 25,000,000
35,000,000 5.61 02/09/99 35,000,000
30,000,000 5.61 03/16/99 30,000,000
Morgan Stanley Dean Witter
80,000,000 5.61 01/15/99 79,995,812
Nationsbank Corp.
25,000,000 5.64 12/14/98 25,000,000
New York Life Insurance Co.
40,000,000 5.67 12/03/98 40,000,000
25,000,000 5.67 03/23/99 25,000,000
Old Kentucky Bank & Trust Co.
30,000,000 5.60 04/30/99 29,987,817
PNC Bank, N.A.
25,000,000 5.75 07/17/98 24,999,260
50,000,000(b) 5.55 07/01/99 49,965,000
Postipankki Ltd.
100,000,000 5.64 07/08/98 100,000,000
100,000,000 5.69 08/04/98 100,000,000
25,000,000 5.63 02/09/99 24,992,526
SMM Trust Series 1997-X
35,000,000 5.66 12/14/98 35,000,000
Societe Generale, New York
45,000,000 5.58 05/07/99 44,982,935
25,000,000 5.57 05/26/99 24,983,138
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
VARIABLE RATE DEMAND NOTES (CONTINUED)
Southtrust Bank of Alabama, N.A.
$ 75,000,000 5.56% 09/11/98 $ 74,992,721
40,000,000 5.57 04/21/99 39,984,213
SunAmerica Life Insururance Co.
50,000,000 5.74 09/02/98 50,000,000
Svenska Handelsbanken
150,000,000 5.54 06/01/99 149,918,815
- ----------------------------------------------------------------------------------------------
TOTAL VARIABLE RATE DEMAND NOTES $2,261,403,344
- ----------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT--1.0%
Chase Manhattan Bank
$ 50,000,000 5.62% 07/07/98 $ 50,000,000
- ----------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT $ 50,000,000
- ----------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--3.1%
Joint Repurchase Agreement Account(c)
$104,600,000 5.90% 07/01/98 $ 104,600,000
Joint Repurchase Agreement Account II(c)
50,000,000 5.83 07/01/98 50,000,000
- ----------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $ 154,600,000
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $5,237,848,615(d)
- ----------------------------------------------------------------------------------------------
</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) When-issued security.
(c) A portion of this security is being segregated for when-issued securities.
(d) 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.
7
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE PREMIUM MONEY MARKET FUND
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER AND CORPORATE OBLIGATIONS--27.3%
BANK HOLDING COMPANIES
IMI Funding Corp., U.S.A.
$ 2,742,000 5.46% 08/28/98 $ 2,717,880
Rose One Plus
5,795,000 5.55 07/29/98 5,769,985
4,000,000 5.53 08/28/98 3,964,362
BUSINESS CREDIT INSTITUTIONS
Eksportfinans
5,000,000 5.47 07/02/98 4,999,240
General Electric Capital Corp.
5,000,000 5.53 09/02/98 4,951,613
ELECTRIC GAS & SANITARY UTILITY
Province of Quebec
5,000,000 5.53 07/15/98 4,989,247
RECEIVABLE/ASSET FINANCINGS
Asset Portfolio Funding
5,000,000 5.52 07/21/98 4,984,667
CC USA, Inc.
4,460,000 5.47 08/17/98 4,428,149
2,000,000 5.51 09/03/98 1,980,587
Corporate Receivables Corp.
10,000,000 5.53 07/22/98 9,967,742
Four Winds Funding
4,780,000 5.53 08/25/98 4,739,616
Park Avenue Receivables Corp.
10,000,000 5.55 08/20/98 9,922,917
Receivables Capital Corp.
6,011,000 5.53 08/14/98 5,970,372
WCP Funding Corp.
10,000,000 5.54 09/04/98 9,900,333
Windmill Funding
6,828,000 5.58 07/17/98 6,811,067
SECURITY AND COMMODITY BROKERS, DEALERS AND SERVICES
Bear Stearns Companies, Inc.
10,000,000 5.53 07/29/98 9,957,028
3,000,000 5.52 09/15/98 2,965,040
- ------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER AND CORPORATE OBLIGATIONS $ 99,019,845
- ------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
BANK NOTES--2.6%
Hydro Quebec
$ 5,510,000 7.74% 02/26/99 $ 5,578,555
National Australia Bank Ltd.
4,000,000 5.63 10/16/98 3,999,548
- ---------------------------------------------------------------------------------------
TOTAL BANK NOTES $ 9,578,103
- ---------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - YANKEEDOLLAR--8.8%
Credit Agricole Indosuez, New York
$ 1,000,000 5.95% 08/13/98 $ 999,944
Deutsche Bank, New York
5,000,000 5.65 03/22/99 4,998,094
Landesbank Hessen Thuringen Girozentrale
3,000,000 5.94 10/23/98 2,999,463
National Bank of Canada, New York
5,000,000 5.76 06/10/99 4,997,293
Societe Generale, New York
2,000,000 5.72 03/05/99 1,999,352
3,000,000 5.63 04/06/99 2,996,123
Swiss Bank Corp., New York
5,000,000 5.71 07/02/98 5,000,008
5,000,000 5.74 06/09/99 4,997,300
Westpac Banking Corp., New York
3,000,000 5.77 05/12/99 2,998,513
- ---------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT - YANKEEDOLLAR $ 31,986,090
- ---------------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES(A)--30.9%
Abbey National Treasury Services
$10,000,000 5.49% 06/15/99 $ 9,990,125
American Express Centurion Bank
5,000,000 5.68 11/23/98 5,001,517
Bank of Austria, New York
5,000,000 5.53 06/04/99 4,996,805
Barclays Bank PLC
5,000,000 5.52 06/02/99 4,996,381
Bayerische Landesbank
5,000,000 5.53 02/25/99 4,997,788
2,000,000 5.53 03/23/99 1,998,872
Comerica Bank Detroit
3,000,000 5.55 09/11/98 2,999,628
5,000,000 5.55 06/10/99 4,996,764
</TABLE>
- --------------------------------------- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
8
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
VARIABLE RATE DEMAND NOTES (CONTINUED)
Corestates Bank, N.A.
$ 5,000,000 5.61% 10/30/98 $ 5,000,000
Den Danske Bank Corp.
5,000,000 5.60 03/25/99 4,999,650
First Chicago Corp.
2,000,000 5.84 11/09/98 2,001,585
First Tennessee Bank, N.A.
5,000,000 5.57 04/23/99 4,998,013
First U.S.A. Bank
5,000,000 5.66 02/01/99 5,010,130
General Electric Capital Corp.
5,000,000 5.61 11/09/98 5,000,000
Istituto Bancario, New York
5,000,000 5.57 05/24/99 4,996,924
JP Morgan Securities, Inc.(b)
5,000,000 5.55 07/07/99 4,997,075
Merrill Lynch & Co., Inc.
2,000,000 5.61 08/03/98 1,999,991
5,000,000 5.61 01/25/99 5,000,000
Morgan Stanley Dean Witter
5,000,000 5.61 01/15/99 4,999,738
Old Kentucky Bank & Trust Co.
5,000,000 5.60 04/30/99 4,997,969
SMM Trust Series 1997-X
2,000,000 5.66 12/14/98 2,000,000
Societe Generale, New York
3,000,000 5.78 09/11/98 2,999,625
Southtrust Bank of Alabama, N.A.
3,000,000 5.56 09/08/98 2,999,721
5,000,000 5.57 04/21/99 4,998,027
Svenska Handelsbanken
5,000,000 5.54 06/01/99 4,997,294
- --------------------------------------------------------------------------------------------------
TOTAL VARIABLE RATE DEMAND NOTES $111,973,622
- --------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS--31.8%
Joint Repurchase Agreement Account(c)
$88,200,000 5.90% 07/01/98 $ 88,200,000
Lehman Government Securities, dated 06/30/98, repurchase price
$10,001,611 (FHLMC: $10,204,416, 6.50%-8.50%, 08/01/06-06/01/18)
10,000,000 5.80 07/01/98 10,000,000
Swiss Bank Corp., dated 06/30/98, repurchase price $17,002,753
(U.S. Treasury Note: $17,360,028, 5.38%, 06/30/03)
17,000,000 5.83 07/01/98 17,000,000
- ------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $115,200,000
- ------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $367,757,660(d)
- ------------------------------------------------------------------------------------------------
</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) When-issued security.
(c) A portion of this security is being segregated for a when-issued security.
(d) 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.
9
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE TREASURY OBLIGATIONS FUND
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS--11.4%
United States Treasury Notes
$ 75,000,000 5.88% 11/02/98 $ 75,038,340
50,000,000 5.88 02/01/99 50,055,002
65,000,000 8.88 02/16/99 66,318,886
102,000,000 6.25 03/31/99 102,544,328
52,000,000 7.00 04/15/99 52,580,465
85,000,000 6.38 04/30/99 85,532,536
60,000,000 6.38 05/17/99 60,390,000
60,000,000 6.25 06/01/99 60,370,368
- ---------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS $ 552,829,925
- ---------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--88.8%
Bear Stearns Companies, Inc., dated 06/30/98, repurchase price
$215,035,236 (total collateral value $220,471,041 consisting of U.S.
Treasury Bill: 12/17/98; U.S. Treasury Notes: 5.75%-7.75%, 08/15/99-
11/30/01)
$ 215,000,000 5.90% 07/01/98 $ 215,000,000
BZW Securities, dated 06/30/1998, repurchase price $170,027,625 (total
collateral value $173,400,941 consisting of U.S. Treasury Stripped
Interest Only Securities: 08/15/98-05/15/05; U.S. Treasury Stripped
Principal Only Securities: 11/15/98-11/15/04; U.S. Treasury Notes: 4.75%-
8.88%, 07/31/98-02/15/04, U.S. Treasury Bonds: 8.25%-13.13%, 05/15/01-
05/15/05)
170,000,000 5.85 07/01/98 170,000,000
C.S. First Boston Corp., dated 06/30/98, repurchase price $60,010,083
(U.S. Treasury Stripped Interest Only Securities: $62,189,651, 08/15/02-
02/15/08)
60,000,000 6.05 07/01/98 60,000,000
Chase Manhattan Securities, dated 06/30/98, repurchase price $215,035,236
(U.S. Treasury Notes: $219,300,850, 5.25%-8.75%, 06/30/00-05/31/01)
215,000,000 5.90 07/01/98 215,000,000
CIBC Oppenheimer, Inc., dated 06/30/98, repurchase price $207,032,488
(total collateral value $211,141,237 consisting of U.S. Treasury Bill:
10/15/98; U.S. Treasury Notes: 5.00%-7.50%, 02/15/99-10/31/02)
207,000,000 5.65 07/01/98 207,000,000
Dresdner Kleinwort Benson, Dated 06/30/98, Repurchase Price $215,034,042
(total collateral value $219,304,721 consisting of U.S. Treasury Bill:
08/13/98; US Treasury Stripped Interest Only Security: 3.38%, 01/15/07;
U.S. Treasury Notes: 4.75%-8.88%, 07/31/98-02/15/05)
215,000,000 5.70 07/01/98 215,000,000
Goldman, Sachs & Co., dated 06/30/98, repurchase price $215,034,639 (U.S.
Treasury Note: $219,300,427, 5.38%, 06/30/03)
215,000,000 5.80 07/01/98 215,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
Joint Repurchase Agreement Account
$2,039,000,000 5.90% 07/01/98 $2,039,000,000
JP Morgan Securities, Inc., dated 06/30/98, repurchase price
$215,034,639 (total collateral value $219,300,967 consisting of U.S.
Treasury Note: 5.38%, 06/30/00; FNMA: 5.63%-6.32%, 07/02/98-12/10/02;
FHLMC: 5.75%-7.20%, 07/09/98-07/31/07; FHLB: 5.97%-6.00%, 07/22/98-
09/02/98; FCSB: 5.75%-6.19%, 07/01/98-12/29/00)
215,000,000 5.80 07/01/98 215,000,000
Lehman Government Securities, Inc., dated 06/30/98, repurchase price
$150,024,375 (total collateral value $152,954,551 consisting of U.S.
Treasury Notes: 5.63%-8.75%, 04/30/99-11/15/01; U.S. Treasury Bond,
9.38%, 02/15/06)
150,000,000 5.85 07/01/98 150,000,000
Lehman Government Securities, Inc., dated 06/30/98, repurchase price
$50,007,986 (total collateral value $50,999,611 consisting of U.S.
Treasury Note: 6.50%, 04/30/99; U.S. Treasury Stripped Principal Only
Securities: 8.75%-12.00%, 08/15/00-05/15/05)
50,000,000 5.75 07/01/98 50,000,000
Merrill Lynch Government Securities, Inc., dated 06/30/98, repurchase
price $215,034,340 (total collateral value $219,300,754 consisting of
U.S. Treasury Notes: 5.00%-7.75%, 01/15/99-05/31/03; U.S. Treasury
Stripped Principal Only Securities: 6.25%-9.25%, 08/15/98-02/15/03,
U.S. Treasury Stripped Interest Only Securities: 10/31/98-10/31/02)
215,000,000 5.75 07/01/98 215,000,000
Nomura Securities International, Inc., dated 06/25/98, repurchase price
$210,224,583 (total collateral value of $214,200,152 consisting of
U.S. Treasury Bills: 08/06/98-12/24/98; U.S. Treasury Bonds: 9.38%-
13.38%, 08/15/01-02/15/06; U.S. Treasury Stripped Principal Only
Securities: 10/31/99-05/15/00; U.S. Treasury Notes: 3.63%-8.00%,
07/31/98-02/15/08)
210,000,000 5.50 07/02/98 210,000,000
Swiss Bank Corp., dated 06/30/98, repurchase price $113,818,429 (U.S.
Treasury Notes: $116,213,024, 5.38%-9.12%, 08/15/98-06/30/03)
113,800,000 5.83 07/01/98 113,800,000
- -------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $4,289,800,000
- -------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $4,842,629,925(a)
- -------------------------------------------------------------------------------------------
</TABLE>
(a) The amount stated also represents aggregate cost for federal income tax
purposes.
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.
10
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE TREASURY INSTRUMENTS FUND
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS--98.1%
United States Treasury Bills
$ 300,000 5.04% 07/02/98 $ 299,958
5,300,000 4.99 08/06/98 5,273,553
15,000,000 4.88 08/13/98 14,912,567
9,300,000 4.90 08/20/98 9,236,708
1,600,000 4.86 09/03/98 1,586,176
10,200,000 4.92 09/03/98 10,110,784
1,300,000 4.94 09/03/98 1,288,583
4,800,000 4.95 09/03/98 4,757,760
45,000,000 5.03 09/17/98 44,509,575
United States Treasury Notes
145,000,000 8.25 07/15/98 145,164,964
25,000,000 5.25 07/31/98 25,001,831
30,000,000 5.88 08/17/98 30,019,107
25,000,000 6.13 08/31/98 25,030,069
- -------------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS $317,191,635
- -------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $317,191,635(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.
11
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE GOVERNMENT FUND
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS--51.1%
Federal Farm Credit Bank
$ 50,000,000 5.70% 12/01/98 $ 49,977,913
35,970,000 5.65 01/04/99 35,943,424
Federal Home Loan Bank
65,000,000 5.44 07/02/98 64,999,855
40,000,000 5.71 10/01/98 39,996,908
50,000,000 5.50 03/26/99 49,941,995
37,795,000 5.63 04/09/99 37,777,532
Federal Home Loan Mortgage Corp.
125,000,000 5.43 07/01/98 125,000,000
115,000,000 5.46(a) 01/26/99 114,955,364
240,000,000 5.45 04/21/99 239,885,944
50,000,000 5.45 05/04/99 49,968,879
Federal National Mortgage Association
100,000,000 5.47 07/15/98 99,997,574
50,000,000 5.42(a) 09/15/98 49,990,786
200,000,000 5.45 01/22/99 199,933,344
80,000,000 5.44(a) 02/17/99 79,960,255
41,000,000 5.41 02/23/99 40,952,753
35,000,000 5.53 03/11/99 34,981,562
85,000,000 5.61 05/21/99 84,941,449
Student Loan Marketing Association
49,000,000 5.79 09/16/98 48,997,777
25,000,000 5.63 06/30/99 24,991,274
- --------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS $1,473,194,588
- --------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--49.0%
Bear Stearns Companies, Inc., dated 06/30/98, repurchase price
$75,013,021 (total collateral value $77,271,573 consisting of FNMA:
6.50%-7.00%, 09/01/08-03/01/27; FHLMC: 6.50%-7.00%, 12/01/23-02/01/28)
$ 75,000,000 6.25% 07/01/98 $ 75,000,000
C.S. First Boston Corp., dated 06/30/98, repurchase price $100,015,833
(U.S. Treasury Note: $102,457,904, 6.75%, 05/31/99)
100,000,000 5.70 07/01/98 100,000,000
CIBC Oppenheimer, Inc., dated 06/30/98, repurchase price $125,020,486
(FHLMC: $128,243,340, 7.00%, 12/01/27-05/01/28)
125,000,000 5.90 07/01/98 125,000,000
Joint Repurchase Agreement
152,000,000 5.90 07/01/98 152,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
JP Morgan Securities, Inc., dated 04/16/98, repurchase price
$101,367,139 (GNMA: $102,000,000, 8.50%-9.00%, 05/15/16-04/15/27)
$100,000,000 5.53% 07/14/98 $ 100,000,000
JP Morgan Securities, Inc., dated 06/09/98, repurchase price
$202,815,944 (GNMA: $204,000,000, 7.00%-9.00%, 02/15/16-06/15/28)
200,000,000 5.57 09/08/98 200,000,000
Lehman Government Securities, Inc., dated 06/30/98, repurchase price
$75,012,188 (total collateral value $76,500,595 consisting of FHLMC:
6.50%-12.00%, 01/01/99-09/01/13; FNMA: 5.50%-9.38%, 01/01/07-09/01/26)
75,000,000 5.85 07/01/98 75,000,000
Nationsbanc Securities, dated 06/30/98, repurchase price $150,026,458
(FNMA: $153,962,299, 6.50%, 11/01/12)
150,000,000 6.35 07/01/98 150,000,000
Nomura Securities International, Inc., dated 06/30/98, repurchase price
$200,035,278 (total collateral value $204,000,000 consisting of FNMA:
5.50%-8.50%, 08/01/99-07/01/28; FHLMC: 5.00%-10.00%, 08/01/98-07/01/28)
200,000,000 6.35 07/01/98 200,000,000
Swiss Bank Corp., dated 06/30/98, repurchase price $237,237,227 (U.S.
Treasury Note: $242,373,569, 5.75%, 04/30/03)
237,200,000 5.65 07/01/98 237,200,000
- ----------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $1,414,200,000
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $2,887,394,588(b)
- ----------------------------------------------------------------------------------------------
</TABLE>
(a) Variable rate security-base index is either Federal Funds, Prime lending
rate, or one month LIBOR.
(b) 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.
12
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE FEDERAL FUND
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Amortized Cost
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS--102.8%
Federal Farm Credit Bank
$ 40,000,000 5.46% 07/01/98 $ 40,000,000
65,000,000 5.55(a) 07/01/98 65,000,000
22,750,000 5.75 07/01/98 22,750,000
18,000,000 5.40 07/06/98 17,986,500
15,000,000 5.40 07/07/98 14,986,500
9,200,000 5.50 07/07/98 9,191,567
7,700,000 5.40 07/10/98 7,689,605
20,000,000 5.39 07/14/98 19,961,072
8,000,000 5.40 07/20/98 7,977,200
16,500,000 5.42 07/23/98 16,445,348
8,805,000 5.40 07/24/98 8,774,623
5,000,000 5.40 07/27/98 4,980,500
20,400,000 5.38 08/07/98 20,287,199
24,000,000 5.40 08/11/98 23,852,537
10,000,000 5.32 08/13/98 9,936,455
35,000,000 5.32 08/14/98 34,772,422
11,000,000 5.40 08/19/98 10,919,150
125,000,000 5.42(a) 09/02/98 124,981,877
6,593,000 5.31 09/08/98 6,525,900
5,941,000 5.40 09/11/98 5,876,837
10,000,000 5.75 09/11/98 9,998,225
15,000,000 5.70 12/01/98 14,993,373
50,000,000 5.61 01/04/99 50,000,000
30,000,000 5.38 03/02/99 29,966,007
75,000,000 5.46(a) 04/15/99 74,970,896
25,000,000 5.45(a) 05/03/99 24,989,682
35,000,000 5.60(a) 06/01/99 34,981,150
60,000,000(b) 5.56 07/01/99 59,964,804
Federal Home Loan Bank
20,000,000 5.40 07/01/98 20,000,000
95,800,000 5.55 07/01/98 95,800,000
65,000,000(c) 5.44(a) 07/02/98 64,999,844
9,663,000 5.39 07/06/98 9,655,766
60,249,000 5.40 07/06/98 60,203,813
50,000,000 5.43 07/07/98 49,999,200
50,000,000 5.39 07/08/98 49,947,597
17,366,000 5.39 07/10/98 17,342,599
75,000,000 5.36 07/15/98 74,843,667
18,300,000 5.39 07/15/98 18,261,641
43,095,000 5.41 07/15/98 43,004,333
44,502,000 5.35 07/17/98 44,396,184
23,622,000 5.36 07/17/98 23,565,727
30,000,000 5.41 07/17/98 29,927,867
33,200,000 5.39 07/22/98 33,095,614
100,000,000 5.43 07/23/98 99,994,037
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS (CONTINUED)
Federal Home Loan Bank (continued)
$100,000,000 5.38% 08/14/98 $ 99,342,444
14,900,000 5.39 08/19/98 14,790,688
70,000,000 5.39 09/09/98 69,266,361
25,000,000 5.43 09/17/98 24,995,797
45,000,000 5.44(a) 10/02/98 44,991,067
20,000,000 5.70 10/23/98 19,994,316
75,000,000 5.46 02/11/99 74,968,340
21,000,000 5.48 03/10/99 20,980,671
20,000,000 5.60 03/10/99 19,999,448
20,000,000 5.61 06/18/99 19,989,353
Student Loan Marketing Association
30,050,000 5.79 09/16/98 30,055,046
70,000,000 5.57 04/01/99 69,979,506
25,000,000 5.62 04/16/99 24,990,301
30,000,000 5.63 06/02/99 29,986,634
10,000,000 5.63 06/30/99 9,995,582
Tennessee Valley Authority
21,875,000 5.39 07/08/98 21,852,095
25,000,000 5.40 07/08/98 24,973,750
50,000,000 5.38 07/24/98 49,828,139
25,000,000 5.36 07/27/98 24,903,222
25,000,000 5.38 08/06/98 24,865,500
25,000,000 5.38 08/13/98 24,839,347
15,000,000 5.39 09/21/98 14,815,842
- -----------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS $2,268,200,767
- -----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $2,268,200,767(d)
- -----------------------------------------------------------------------------------------------
</TABLE>
(a) Variable rate security-base index is either Federal Funds, Prime lending
rate, or one month LIBOR.
(b) When-issued security.
(c) A portion of this security is being segregated for a when-issued security.
(d) 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.
13
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE TAX-FREE MONEY MARKET FUND
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
ALABAMA--4.0%
Columbia IDB PCRB for Alabama Power Co. Series 1996 A
(A-1/VMIG1)
$ 3,600,000 3.90% 07/01/98 $ 3,600,000
Columbia IDB PCRB for Alabama Power Company Series 1995 B
(A-1/VMIG1)
3,300,000 3.90 07/01/98 3,300,000
Eutaw City IDB PCRB for Mississippi Power Co. Greene County Plant Project
Series 1992 (A-1/VMIG1)(a)
6,550,000 3.65 07/07/98 6,550,000
Homewood RB for Samford University (Bank of Nova Scotia LOC)
(A-1+/VMIG1)
6,800,000 3.90 07/01/98 6,800,000
Jefferson County MF Hsg. RB for Hickory Knolls Project Series 1994
(Amsouth Bank LOC) (P-1)
3,770,000 3.60 07/07/98 3,770,000
Mobile IDA PCRB for Alabama Power Series 1993 A (A-1/VMIG1)
4,600,000 3.60 07/07/98 4,600,000
Mobile IDA PCRB for Alabama Power Series 1994 (A-1/VMIG1)
7,800,000 3.90 07/01/98 7,800,000
Montgomery Special Care RB Series 1994 A (Amsouth Bank LOC) (VMIG1)
8,000,000 3.50 07/07/98 8,000,000
West Jefferson IDB PCRB for Alabama Power Co. Series 1998
(A-1/VMIG1)
14,300,000 4.10 07/01/98 14,300,000
- -----------------------------------------------------------------------------------------------
$ 58,720,000
- -----------------------------------------------------------------------------------------------
ARIZONA--1.4%
Tempe VRDN Excise Tax Revenue Obligations Series 1998
(A-1+/VMIG1)
$19,700,000 3.85% 07/01/98 $ 19,700,000
- -----------------------------------------------------------------------------------------------
ARKANSAS--0.3%
Crossett City PCRB for Georgia Pacific Corp. Series 1991 VRDN (Suntrust
Bank LOC) (AA3)
$ 4,500,000 3.60% 07/07/98 $ 4,500,000
- -----------------------------------------------------------------------------------------------
CALIFORNIA--1.5%
California Municipal Securities Trust Receipts Series 1997 SGA 55 (FGIC)
(A-1+)
$12,000,000 3.60% 07/07/98 $ 12,000,000
Los Angeles County TRANS Series 1997-98 A (SP-1+/MIG1)(b)
10,000,000 4.50 06/30/99 10,091,400
- -----------------------------------------------------------------------------------------------
$ 22,091,400
- -----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
CONNECTICUT--1.4%
State of Connecticut 2nd Lien Special TRANS VRDN Series 1 (Commerzbank
Bank LOC) (A-1+/VMIG1)
$20,700,000 3.50% 07/07/98 $ 20,700,000
- -----------------------------------------------------------------------------------------------
FLORIDA--1.7%
Dade County Water & Sewer System RB Series 1994 (FGIC)
(A-1+/VMIG1)
$12,000,000 3.40% 07/07/98 $ 12,000,000
Putnam County Development Authority Floating/Fixed Rate PCRB for Seminole
Electric Cooperative Series 1984 H (CFC LOC) (A-1+/P-1)
3,600,000 3.65 07/07/98 3,600,000
6,530,000 3.65 07/07/98 6,530,000
Putnam County Development Authority Floating/Fixed Rate PCRB for Seminole
Electric Cooperative Series 1984 S (CFC LOC) (A-1+/P-1)
2,655,000 3.65 07/07/98 2,655,000
- -----------------------------------------------------------------------------------------------
$ 24,785,000
- -----------------------------------------------------------------------------------------------
GEORGIA--12.0%
Bartow County IDA PCRB for Georgia Power Co. First Series 1997 (VMIG1)
$17,700,000 3.90% 07/01/98 $ 17,700,000
Burke County IDA PCRB for Georgia Power Co. Eighth Series 1994
(A-1/VMIG1)
5,400,000 3.90 07/01/98 5,400,000
Burke County IDA PCRB for Georgia Power Co. Fifth Series 1995 (VMIG1)
13,370,000 3.90 07/01/98 13,370,000
Burke County IDA PCRB for Georgia Power Co. Ninth Series 1994
(A-1/VMIG1)
7,700,000 3.90 07/01/98 7,700,000
Burke County IDA PCRB for Oglethorpe Power Corp. Series 1993 A(FGIC) (A-
1+/ VMIG1)
21,200,000 3.40 07/07/98 21,200,000
De Kalb County Hospital Authority RB Series 1993 B (Suntrust Bank LOC)
(MIG1)
2,230,000 3.60 07/07/98 2,230,000
Effingham County IDA PCRB for Savannah Electric & Power Company Series
1997 (A-1/VMIG1)
5,500,000 3.90 07/01/98 5,500,000
Floyd County PCRB for Georgia Power Co. First Series 1996
(A-1/VMIG1)
4,000,000 3.90 07/01/98 4,000,000
Georgia Municipal Gas Authority RB for Agency Project Series B (C.S. First
Boston/Morgan Guaranty/Bayerische Landesbank Girozentrale/Wachovia
Bank/ABN/AMRO Bank) (A-1+)
10,000,000 3.50 07/07/98 10,000,000
</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>
- -----------------------------------------------------------------------------------------------
GEORGIA (CONTINUED)
Georgia Municipal Gas Authority RB for Gas Portfolio II Project Series A
(A-1+)
$ 7,000,000 3.40% 07/07/98 $ 7,000,000
Georgia Municipal Gas Authority RB for Gas Portfolio II Project Series B
(C.S. First Boston/Morgan Guaranty/Bayerische Landesbank
Girozentrale/Wachovia Bank) (A-1)
48,200,000 3.40 07/07/98 48,200,000
Municipal Electric Authority of Georgia Project One Subordinated Bonds
Series 1994 E (ABN/AMRO Bank LOC) (A-1+/VMIG1)
14,095,000 3.40 07/07/98 14,095,000
Municipal Electric Authority of Georgia Project One Subordinated Bonds
Series 1985 A (Morgan Guaranty/C.S. First Boston/Bayerische Landesbank
Girozentrale) (A-1+/VMIG1)
5,000,000 3.75 08/24/98 5,000,000
6,000,000 3.75 09/09/98 6,000,000
Municipal Electric Authority of Georgia Subordinated General Resolution
Bonds Series 1985 B (C.S. First Boston/Morgan Guaranty/Bayerische
Landesbank Girozentrale LOC) (A-1+/VMIG1)
7,200,000 3.35 07/07/98 7,200,000
- -----------------------------------------------------------------------------------------------
$ 174,595,000
- -----------------------------------------------------------------------------------------------
IDAHO--1.4%
Idaho State TANS (SP-1+/MIG1)(b)
$20,000,000 4.50% 06/30/99 $ 20,173,000
- -----------------------------------------------------------------------------------------------
ILLINOIS--10.3%
Chicago GO Tender Notes Series 1997 (Morgan Guaranty Trust)
(SP-1+/MIG1)
$17,800,000 3.55% 10/29/98 $ 17,800,000
Cook County GO Variable Rate Series 1996 (A-1+/VMIG1)
11,100,000 3.50 07/07/98 11,100,000
Illinois Health Facilities Authority VRDN for Elmhurst Memorial Health
System Series 1998 A (VMIG1)
19,200,000 3.85 07/01/98 19,200,000
Illinois Health Facilities Authority VRDN for Elmhurst Memorial Health
Systems (VMIG1)
26,700,000 3.85 07/01/98 26,700,000
Illinois Health Facilities Authority VRDN for Evanston Northwestern Health
Care Corp. Series 1998 (A-1+/VMIG1)
7,500,000 3.70 06/01/99 7,500,000
Illinois Health Facilities Authority VRDN for Northwest Community Hospital
Series 1995 (A-1+/VMIG1)
4,900,000 3.60 07/07/98 4,900,000
Illinois Health Facilities Authority VRDN for Northwest Community Hospital
Series 1997 (A-1+/VMIG1)
8,400,000 3.60 07/07/98 8,400,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
ILLINOIS (CONTINUED)
Illinois Health Facilities Authority VRDN Revolving Fund Pooled Finance
Program Series 1985 C (First National Bank of Chicago LOC) (A-1+/MIGI)
$19,000,000 3.50% 07/07/98 $ 19,000,000
Illinois Health Facilities Authority VRDN Revolving Fund Pooled Finance
Program Series 1985 D (First National Bank of Chicago LOC) (A-1+/VMIG1)
21,000,000 3.50 07/07/98 21,000,000
Joliet Regional Port Marine Terminal RB for Exxon Project Series 1989 (A-
1+/P-1)
4,100,000 3.70 07/01/98 4,100,000
Sauget Village PCRB VRDN for Monsanto Project Series 1992 (P-1)
1,000,000 3.65 07/07/98 1,000,000
Sauget Village PCRB VRDN for Monsanto Project Series 1993 (P-1)
1,900,000 3.65 07/07/98 1,900,000
Societe Generale Municipal Securities Trust Receipts for Chicago Midway
Airport RB Series 1996 A (MBIA) (A-1+C)
7,540,000 3.68 07/07/98 7,540,000
- -----------------------------------------------------------------------------------------------
$ 150,140,000
- -----------------------------------------------------------------------------------------------
INDIANA--4.0%
Fort Wayne Hospital Authority VRDN for Parkview Memorial Hospital Series
1985 B (Bank of America LOC) (VMIG1)
$ 1,600,000 3.40% 07/07/98 $ 1,600,000
Gary RB for U.S. Steel Project Series 1986 (Bank of New York) (A-1+/P-1)
10,000,000 3.70 10/09/98 10,000,000
Indiana Development Finance Authority Series 1997 (Bayer Corporation) (A-
1+/P-1)
10,200,000 4.15 07/01/98 10,200,000
Indiana Health Facilities Authority Variable Rate RB for Daughters of
Charity National Health System Series 1997 E (A-1+/VMIG1)
19,900,000 3.40 07/07/98 19,900,000
Indiana Hospital Equipment Financing Authority RB Series 1985 A (MBIA) (A-
1/VMIG1)
5,000,000 3.60 07/07/98 5,000,000
Jasper County PCRB for Nipsco Series 1994 B (A-1/VMIG1)
4,300,000 3.80 07/01/98 4,300,000
Warrick County PCRB for Aluminum Company of America Series 1992 (A-1)
7,475,000 3.65 07/07/98 7,475,000
- -----------------------------------------------------------------------------------------------
$ 58,475,000
- -----------------------------------------------------------------------------------------------
IOWA--2.2%
Chillicothe City PCRB for Midwest Power Systems Series 1993 A
(A-1/VMIG1)
$ 2,400,000 3.55% 07/07/98 $ 2,400,000
</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, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
IOWA (CONTINUED)
Louisa County PCRB for Iowa-Illinois Gas & Electric Co./Midamerican Energy
Co. Series 1986 A (A-1)
$ 9,100,000 3.60% 07/07/98 $ 9,100,000
Louisa County PCRB for Midwest Power Systems Inc. Series 1994
(A-1/VMIG1)(a)
20,000,000 3.60 07/07/98 20,000,000
- -----------------------------------------------------------------------------------------------
$ 31,500,000
- -----------------------------------------------------------------------------------------------
KENTUCKY--4.6%
Calvert PCRB for Air Products and Chemicals, Inc. Project Series 1993 A
(A-1)
$ 3,000,000 3.65% 07/07/98 $ 3,000,000
Kentucky Economic Development Finance Authority Adjustable Rate Hospital
Facilities RB for the Health Alliance of Greater Cincinnati Series 1997 D
(MBIA LOC) (A-1/VMIG1)
11,700,000 3.70 07/07/98 11,700,000
Kentucky Turnpike Authority Refunding RB Trust Receipts Series 1987 A
(Financial Security Assurance Inc.) (A-1+/VMIG1)
23,000,000 3.70 07/07/98 23,000,000
Mason County Variable/Fixed Rate PCRB for East Kentucky Power Series 1984
B (CFC) (A-1+)
13,250,000 3.65 07/07/98 13,250,000
16,450,000 3.65 07/07/98 16,450,000
- -----------------------------------------------------------------------------------------------
$ 67,400,000
- -----------------------------------------------------------------------------------------------
LOUISIANA--1.2%
Calcasieu Parish VRDN for Olin Corp. Series 1993 B (Wachovia Bank) (A-1+)
$ 7,800,000 4.15% 07/01/98 $ 7,800,000
Parish of Desoto PCRB for Central Louisiana Electric Co. Series 1991 A
(Swiss Bank Corp. LOC) (A-1+/VMIG1)
10,000,000 3.35 07/07/98 10,000,000
- -----------------------------------------------------------------------------------------------
$ 17,800,000
- -----------------------------------------------------------------------------------------------
MARYLAND--2.0%
Maryland State & Local Loan of 1998 GO Puttable Floating Option Tax-Exempt
Securities Receipts Series 1 (A-1+)
$29,665,000 3.68% 07/07/98 $ 29,665,000
- -----------------------------------------------------------------------------------------------
MASSACHUSETTS--1.8%
Massachusetts Health & Education Authority COPS for Harvard University
Eagle Tax-Exempt Trust Series 972104, Class A (A-1+C)
$10,000,000 3.68% 07/07/98 $ 10,000,000
Massachusetts Health & Education Authority RB for Harvard University
Series I (A-1+/VMIG1)
16,000,000 3.40 07/07/98 16,000,000
- -----------------------------------------------------------------------------------------------
$ 26,000,000
- -----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
MICHIGAN--3.6%
Michigan Building Authority CP Notes Series 2 (Canadian Imperial Bank of
Commerce) (A-1+/P-1)
$25,000,000 3.70% 10/01/98 $ 25,000,000
Michigan Strategic Fund PCRB Series for Detroit Edison Series 1995 CC
(Barclays Bank LOC) (A-1+/P-1)
3,800,000 3.80 07/01/98 3,800,000
Michigan Strategic Funding Limited Obligation RB for Consumers Power Co.
Series 1993 A (Canadian Imperial Bank of Commerce)
(A-1+)
3,500,000 3.80 07/01/98 3,500,000
Monroe County Economic Development Corp. Ltd. RB Series 1992 CC (Barclays
Bank) (P-1)
7,900,000 3.80 07/01/98 7,900,000
State of Michigan GO Notes (SP-1+/MIG1)
12,000,000 4.50 09/30/98 12,021,763
- -----------------------------------------------------------------------------------------------
$ 52,221,763
- -----------------------------------------------------------------------------------------------
MINNESOTA--0.3%
Port Authority of St. Paul VRDN for Weyerhaeuser Project Series 1993 (A-1)
$ 4,000,000 3.70% 07/07/98 $ 4,000,000
- -----------------------------------------------------------------------------------------------
MISSOURI--1.5%
Missouri Environmental Improvement and Energy Resources Authority VRDN
PCRB for Monsanto Series 1993 (P-1)
$ 1,500,000 3.65% 07/07/98 $ 1,500,000
Missouri Health & Education Facilities Authority Health Care Project RB
Series 1988 C (Morgan Guaranty Trust) (VMIG1)
5,000,000 3.75 08/17/98 5,000,000
Missouri Health & Education Facilities Authority RB for Washington
University Series 1984 (A-1+/VMIGI)
6,400,000 3.60 07/07/98 6,400,000
Missouri Health & Education Facilities Authority Tax-Exempt VRDN Series
1995 B (MBIA) (A-1+)
5,888,000 3.85 11/01/98 5,888,000
Missouri Health & Education Facilities Authority Tax-Exempt VRDN Series
1995 C (MBIA) (A-1+)
3,475,000 3.85 11/01/98 3,475,000
- -----------------------------------------------------------------------------------------------
$ 22,263,000
- -----------------------------------------------------------------------------------------------
NEVADA--3.0%
Clark County Airport System Refunding RB Series 1993 A (MBIA)
(A-1+/VMIG1)
$43,340,000 3.40% 07/07/98 $ 43,340,000
- -----------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
16
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NEW MEXICO--0.5%
New Mexico TRANS Series 1997 (SP-1+/MIG1)(b)
$ 6,800,000 4.25% 06/30/99 $ 6,842,432
- -----------------------------------------------------------------------------------------------
NEW YORK--6.0%
Long Island Power Authority Electric System Subordinated RB Series
1-6 (A-1+/VMIG1)
$16,000,000 3.50% 07/07/98 $ 16,000,000
46,800,000 3.70 10/29/98 46,800,000
New York City Health & Hospitals Corp. Health System Bonds Series 1997 A
(Morgan Guaranty Trust) (A-1+/VMIG1)
7,400,000 3.20 07/07/98 7,400,000
New York City Health & Hospitals Corp. Health System Bonds Series 1997 B
(Canadian Imperial Bank of Commerce) (A-1+/VMIG1)
600,000 3.30 07/07/98 600,000
New York City Puttable Tax-Exempt Receipts GO Bonds Fiscal 1995 Series D
(MBIA) (VMIG1)
8,500,000 3.73 07/07/98 8,500,000
New York State Energy Research & Development Authority PCRB for Brooklyn
Union Gas Series 1997 A-1 (MBIA) (A-1+/VMIG1)
2,735,000 3.45 07/07/98 2,735,000
New York State Environmental Quality Variable Interest Rate GO Bonds
Series 1997 A (A-1+/VMIG1)
6,200,000 3.75 08/17/98 6,200,000
- -----------------------------------------------------------------------------------------------
$ 88,235,000
- -----------------------------------------------------------------------------------------------
NORTH CAROLINA--4.3%
Charlotte Variable Rate Airport Refunding RB Series 1993 A (MBIA)
(A-1+/VMIG1)
$ 1,500,000 3.40% 07/07/98 $ 1,500,000
Greensboro COPS Series 1998 (A-1/VMIG1)
5,000,000 3.60 07/07/98 5,000,000
North Carolina Medical Care Community RB for Moses H. Cone Memorial
Hospital Project Series 1993 (A-1+)
5,000,000 3.40 07/07/98 5,000,000
Person County PCRB for Carolina Power & Light Series 1992 A
(A-1/P-1)
16,400,000 3.70 07/07/98 16,400,000
Rockingham County IDA PCRB for Philip Morris Company Series 1992 (A-1/P-
1)(a)
7,700,000 3.80 07/07/98 7,700,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NORTH CAROLINA (CONTINUED)
Wake County Industrial Facilities & Pollution Control Financing Authority
PCRB for Carolina Power & Light Series 1990 B (Bank of New York) (A-1/P-
1)
$20,000,000 3.75% 09/01/98 $ 20,000,000
7,000,000 3.65 10/14/98 7,000,000
- -----------------------------------------------------------------------------------------------
$ 62,600,000
- -----------------------------------------------------------------------------------------------
OHIO--1.0%
Columbus Electric System Series 1984 RB (Union Bank of Switzerland LOC)
(VMIG1)(a)
$11,500,000 3.65% 07/30/98 $ 11,500,000
Hamilton County Adjustable Rate Hospital Facilities RB for the Health
Alliance of Greater Cincinnati Series 1997 B (MBIA) (A-1+/VMIG1)
2,800,000 3.55 07/07/98 2,800,000
- -----------------------------------------------------------------------------------------------
$ 14,300,000
- -----------------------------------------------------------------------------------------------
OKLAHOMA--0.8%
Muskogee PCRB for Oklahoma Gas & Electric Co. Project Series 1997 S (A-
1/VMIG1)
$11,200,000 3.60% 07/07/98 $ 11,200,000
- -----------------------------------------------------------------------------------------------
PENNSYLVANIA--2.1%
Pennsylvania GO Bond Eagle Tax Exempt Trust Class A COPS First Series 1994
(AMBAC) (A-1+C)
$13,000,000 3.68% 07/07/98 $ 13,000,000
Philadelphia TRANS Series 1997-1998 (SP-1+/MIG1)(b)
17,625,000 4.25 06/30/99 17,729,164
- -----------------------------------------------------------------------------------------------
$ 30,729,164
- -----------------------------------------------------------------------------------------------
PUERTO RICO--1.8%
Puerto Rico Government Development Bank VRDN Series 1985 (C.S. First
Boston LOC) (A-1/VMIG1)
$16,600,000 3.15% 07/07/98 $ 16,600,000
Puerto Rico Highway and Transportation Authority RB Series A (AMBAC) (A-
1+/VMIG1)
10,000,000 3.00 07/07/98 10,000,000
- -----------------------------------------------------------------------------------------------
$ 26,600,000
- -----------------------------------------------------------------------------------------------
SOUTH CAROLINA--2.0%
Piedmont Municipal Power Agency Refunding RB Series 1996 C (MBIA) (A-
1+/VMIG1)
$20,000,000 3.35% 07/07/98 $ 20,000,000
</TABLE>
- --------------------------------------- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
17
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
FINANCIAL SQUARE TAX-FREE MONEY MARKET FUND (continued)
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
SOUTH CAROLINA (CONTINUED)
York County Floating/Fixed Rate PCRB Pooled Series 1984-North Carolina
Electric Membership Corp. VRDN (CFC) (A-1+/VMIG1)
$ 8,675,000 3.65% 07/07/98 $ 8,675,000
- -----------------------------------------------------------------------------------------------
$ 28,675,000
- -----------------------------------------------------------------------------------------------
TENNESSEE--0.2%
Blount County IDB PCRB for Aluminum Company of America Series 1992 (A-1)
$ 2,450,000 3.65% 07/07/98 $ 2,450,000
- -----------------------------------------------------------------------------------------------
TEXAS--15.2%
Coastal Bend Health Facilities Development Corp. RB Series 1997 (First
National Bank of Chicago) (VMIG1)
$ 1,000,000 3.60% 07/07/98 $ 1,000,000
Gulf Coast Waste Disposal Authority PCRB for Monsanto Series 1996 (P-1)
5,300,000 3.65 07/07/98 5,300,000
Gulf Coast Waste Disposal Authority PCRB Series 1992 (Amoco Corporation)
(A-1+/VMIG1)
16,150,000 3.70 07/01/98 16,150,000
Harris County Health Facilities Development Corp. RB for Memorial Hospital
System Series 1997 B (MBIA) (A-1+/VMIG1)
1,100,000 3.40 07/07/98 1,100,000
Harris County Health Facilities Development Corp. RB Series 1997A for St.
Luke's Episcopal Hospital (A-1+)
43,140,000 4.00 07/01/98 43,140,000
Harris County Health Facilities Development Corp. School Health Care
System United Priced Demand Adjustable RB for School of the Incarnate
Word Series 1997 A (A-1+/VMIG1)
4,000,000 3.50 09/10/98 4,000,000
7,000,000 3.70 11/30/98 7,000,000
Houston GO CP Notes Series A (A-1+/P-1)
18,000,000 3.70 08/14/98 18,000,000
San Antonio Electric & Gas System Revenue and Refunding Bonds New Series
1997 SG 104 & SG 105 (A-1+C)
24,000,000 3.68 07/07/98 24,000,000
San Antonio Electric & Gas Systems CP Notes Series A (A-1+/P-1)
9,900,000 3.70 08/12/98 9,900,000
4,500,000 3.70 08/13/98 4,500,000
10,000,000 3.65 09/01/98 10,000,000
10,000,000 3.70 09/25/98 10,000,000
State of Texas TRANS Series 1997 A (SP-1+/MIG1)
52,410,000 4.75 08/31/98 52,489,522
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
Texas Public Finance Authority Tax-Exempt GO CP Notes Series 1993 A (A-
1+/P-1)
$ 5,000,000 3.50% 08/13/98 $ 5,000,000
Waco Health Facilities Development Corp. Variable Rate RB for Charity
Obligation Group Series 1997 E (A-1+/VMIG1)
5,000,000 3.40 07/07/98 5,000,000
West Side Calhoun County Development Corp. PCRB Series 1985
(A-1+/P-1)
5,100,000 4.00 07/01/98 5,100,000
- -----------------------------------------------------------------------------------------------
$ 221,679,522
- -----------------------------------------------------------------------------------------------
UTAH--2.3%
Utah GO Highway CP Notes Series 1998 B (A-1+/P-1)
$ 6,500,000 3.70% 09/09/98 $ 6,500,000
Utah State Board of Regents Auxiliary and Campus Facilities System RB for
University of Utah Series 1997 A (A-1+/VMIG1)
27,590,000 3.35 07/07/98 27,590,000
- -----------------------------------------------------------------------------------------------
$ 34,090,000
- -----------------------------------------------------------------------------------------------
VIRGINIA--3.2%
Chesterfield County IDA PCRB for Philip Morris Companies, Inc. Series 1992
(A-1/P-1)(a)
$14,700,000 3.80% 07/07/98 $ 14,700,000
Louisa PCRB for Virginia Electric & Power Series 1984 (A-1/VMIG1)
4,000,000 3.85 07/23/98 4,000,000
4,000,000 3.90 07/24/98 4,000,000
3,900,000 3.80 08/13/98 3,900,000
2,000,000 3.75 08/17/98 2,000,000
4,000,000 3.65 09/08/98 4,000,000
Roanoke City IDA VRDN for Carilion Health Systems Series A
(A-1/VMIG1)
1,600,000 4.00 07/01/98 1,600,000
Roanoke City IDA VRDN for Carilion Health Systems Series B
(A-1+/VMIG1)
3,000,000 4.00 07/01/98 3,000,000
York County IDA PCRB for Virginia Electric & Power Series 1985
(A-1/VMIG1)
9,000,000 3.80 08/03/98 9,000,000
- -----------------------------------------------------------------------------------------------
$ 46,200,000
- -----------------------------------------------------------------------------------------------
WASHINGTON--1.1%
King County Sewer Revenue BANS CP Series A (A-1/P-1)
$ 9,200,000 3.70% 08/12/98 $ 9,200,000
</TABLE>
- --------------------------------------- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
18
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
WASHINGTON (CONTINUED)
Washington Health Care Facilities Authority VRDN for Fred Hutchinson
Cancer Research Center Series 1996 (Morgan Guaranty Trust LOC) (VMIG1)
$ 7,075,000 3.75% 07/01/98 $ 7,075,000
- ---------------------------------------------------------------------------------------------
$ 16,275,000
- ---------------------------------------------------------------------------------------------
WEST VIRGINIA--1.0%
Marshall County RB Series 1997 (Bayer Corporation) (A-1+/P-1)
$14,000,000 4.15% 07/01/98 $ 14,000,000
- ---------------------------------------------------------------------------------------------
WISCONSIN--1.7%
Milwaukee IDRB Multi-Modal for Pharmacia & Upjohn, Inc. Series 1994 (P-
1)
$ 8,000,000 4.10% 07/07/98 $ 8,000,000
Milwaukee Metropolitan Sewage District GO Bonds Eagle Tax-Exempt Trust
Series 1992 A (A-1)
10,300,000 3.68 07/07/98 10,300,000
Wisconsin Health & Educational Facilities Authority Variable Rate RB
Series 1997 (Toronto Dominion Bank LOC) (A-1+/VMIG1)
6,575,000 3.50 07/07/98 6,575,000
- ---------------------------------------------------------------------------------------------
$ 24,875,000
- ---------------------------------------------------------------------------------------------
WYOMING--2.0%
Converse County PCRB for Pacificorp Series 1994 (AMBAC)
(A-1/VMIG1)
$ 4,690,000 4.10% 07/01/98 $4,690,000
Kemmerer PCRB for Exxon Project Series 1984 (A-1+)
2,600,000 3.70 07/01/98 2,600,000
Sweetwater County PCRB for Idaho Power Co. Series 1996 C
(A-1/VMIG1)
6,700,000 3.80 07/01/98 6,700,000
Sweetwater PCRB for Pacificorp Project Series 1990 A (C.S. First Boston
LOC) (VMIG1)
14,500,000 3.45 07/07/98 14,500,000
- ---------------------------------------------------------------------------------------------
$ 28,490,000
- ---------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $1,505,310,281(c)
- ---------------------------------------------------------------------------------------------
</TABLE>
(a) A portion of this security is segregated for when-issued securities.
(b) When-issued security.
(c) The amount stated also represents aggregate cost for federal income tax
purposes.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------
</TABLE>
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.
INVESTMENT ABBREVIATIONS:
<TABLE>
<C> <S>
AMBAC --Insured by American Municipal Bond Assurance Corp.
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.
GO --General Obligation
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
RB --Revenue Bond
TANS --Tax Anticipation Notes
TRANS --Tax Revenue Anticipation Notes
VRDN --Variable Rate Demand Note
</TABLE>
- --------------------------------------- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
19
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME PREMIUM
OBLIGATIONS MONEY MARKET MONEY MARKET
FUND FUND FUND
----------------------------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at
value based on amortized cost $5,057,631,665 $5,237,848,615 $367,757,660
Receivable for investment
securities sold -- 50,000,000 --
Cash 73,786 -- 12,159
Interest receivable 32,778,866 31,560,385 1,234,098
Deferred organization expenses,
net -- 7,950 --
Other assets 209,269 29,680 60,271
- ------------------------------------------------------------------------------
TOTAL ASSETS 5,090,693,586 5,319,446,630 369,064,188
- ------------------------------------------------------------------------------
LIABILITIES:
Payable for investment securities
purchased 49,970,750 190,021,404 4,997,075
Due to bank -- 49,980,149 --
Dividends payable 23,930,599 22,385,383 1,741,247
Accrued expenses and other
liabilities 1,015,892 1,106,692 149,860
- ------------------------------------------------------------------------------
TOTAL LIABILITIES 74,917,241 263,493,628 6,888,182
- ------------------------------------------------------------------------------
NET ASSETS:
Paid in capital 5,015,784,016 5,055,948,780 362,176,006
Accumulated undistributed net
investment income -- -- --
Accumulated undistributed net
realized gain (loss) on
investments (7,671) 4,222 --
- ------------------------------------------------------------------------------
NET ASSETS $5,015,776,345 $5,055,953,002 $362,176,006
- ------------------------------------------------------------------------------
Net asset value, offering and
redemption price per share
(net assets/shares outstanding) $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------
SHARES OUTSTANDING:
FST shares 4,364,606,833 4,362,465,932 199,360,712
FST Preferred shares 141,810,277 64,155,027 145,447,085
FST Administration shares 278,572,176 330,437,001 8,146,419
FST Service shares 230,794,730 298,890,820 9,221,790
- ------------------------------------------------------------------------------
Total shares of beneficial
interest outstanding, $0.001 par
value (unlimited number of
shares authorized) 5,015,784,016 5,055,948,780 362,176,006
- ------------------------------------------------------------------------------
</TABLE>
- --------------------------------------- ---------------------------------------
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 FUND FUND FUND
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$4,842,629,925 $317,191,635 $2,887,394,588 $2,268,200,767 $1,505,310,281
-- -- -- -- --
12,280 85,978 75,286 68,163 23,952,206
9,027,151 7,234,192 9,489,867 7,326,629 9,267,768
-- -- -- -- 16,352
188,532 59,835 14,757 13,902 42,697
- ---------------------------------------------------------------------------
4,851,857,888 324,571,640 2,896,974,498 2,275,609,461 1,538,589,304
- ---------------------------------------------------------------------------
-- -- -- 59,964,804 74,786,809
-- -- -- -- --
21,052,010 1,304,583 11,561,337 9,303,982 4,315,606
1,199,406 80,279 942,821 723,348 363,307
- ---------------------------------------------------------------------------
22,251,416 1,384,862 12,504,158 69,992,134 79,465,722
- ---------------------------------------------------------------------------
4,829,469,526 323,186,715 2,884,470,340 2,205,617,327 1,459,134,511
-- -- -- 1,586 --
136,946 63 -- (1,586) (10,929)
- ---------------------------------------------------------------------------
$4,829,606,472 $323,186,778 $2,884,470,340 $2,205,617,327 $1,459,123,582
- ---------------------------------------------------------------------------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------
3,344,577,847 286,504,685 1,384,188,970 1,289,868,433 1,187,058,281
264,145,131 1,578 93,122,425 215,296,173 104,389,845
858,596,206 19,764,570 642,306,456 454,771,220 125,386,981
362,150,342 16,915,882 764,852,489 245,681,501 42,299,404
- ---------------------------------------------------------------------------
4,829,469,526 323,186,715 2,884,470,340 2,205,617,327 1,459,134,511
- ---------------------------------------------------------------------------
</TABLE>
---------------------------------------
- ---------------------------------------
21
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME PREMIUM
OBLIGATIONS MONEY MARKET MONEY MARKET
FUND FUND FUND
--------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest Income $151,454,673 $156,283,110 $8,830,080
- -------------------------------------------------------------------------------
EXPENSES:
Management fees 5,454,446 5,624,836 320,072
Custodian fees 285,705 293,087 34,520
Registration fees 210,733 -- 86,578
Professional fees 20,433 20,433 20,433
Amortization of deferred organization
expenses -- 4,482 --
Trustees' fees 11,157 8,943 2,784
Other 64,431 13,591 9,957
- -------------------------------------------------------------------------------
TOTAL EXPENSES 6,046,905 5,965,372 474,344
Less--Expenses reimbursable and fees
waived by Goldman Sachs (1,257,636) (1,026,491) (273,438)
- -------------------------------------------------------------------------------
Net expenses 4,789,269 4,938,881 200,906
Preferred share fees 69,097 36,385 39,002
Administration share fees 369,881 463,045 4,254
Service share fees 501,457 798,024 10,590
- -------------------------------------------------------------------------------
NET EXPENSES AND SHARE FEES 5,729,704 6,236,335 254,752
- -------------------------------------------------------------------------------
NET INVESTMENT INCOME 145,724,969 150,046,775 8,575,328
- -------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENT
TRANSACTIONS 5,462 36,242 693
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $145,730,431 $150,083,017 $8,576,021
- -------------------------------------------------------------------------------
</TABLE>
- --------------------------------------- ---------------------------------------
The accompanying notes are an integral
part of the financial statements.
22
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY TREASURY TAX-FREE
OBLIGATIONS INSTRUMENTS GOVERNMENT FEDERAL MONEY MARKET
FUND FUND FUND FUND FUND
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$120,115,658 $8,920,687 $72,208,559 $57,235,935 $22,115,125
- ---------------------------------------------------------------------------------
4,417,861 347,292 2,630,730 2,108,149 1,264,310
261,949 32,522 179,497 137,111 23,623
212,519 83,007 50,628 39,167 82,034
20,433 20,433 20,434 20,432 20,433
-- -- -- -- 7,728
6,850 2,831 4,963 3,441 3,587
40,678 10,144 21,893 17,530 14,267
- ---------------------------------------------------------------------------------
4,960,290 496,229 2,908,145 2,325,830 1,415,982
(1,081,193) (191,291) (598,236) (474,771) (305,857)
- ---------------------------------------------------------------------------------
3,879,097 304,938 2,309,909 1,851,059 1,110,125
132,598 -- 24,697 100,430 35,137
995,553 23,189 400,804 416,804 178,843
883,118 44,087 1,506,660 557,932 110,634
- ---------------------------------------------------------------------------------
5,890,366 372,214 4,242,070 2,926,225 1,434,739
- ---------------------------------------------------------------------------------
114,225,292 8,548,473 67,966,489 54,309,710 20,680,386
- ---------------------------------------------------------------------------------
574,184 67,653 -- 6,087 4,010
- ---------------------------------------------------------------------------------
$114,799,476 $8,616,126 $67,966,489 $54,315,797 $20,684,396
- ---------------------------------------------------------------------------------
</TABLE>
- --------------------------------------- ---------------------------------------
23
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended June 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME PREMIUM
OBLIGATIONS MONEY MARKET MONEY MARKET
FUND FUND FUND
---------------------------------------------------
<S> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 145,724,969 $ 150,046,775 $ 8,575,328
Net realized gain on
investment transactions 5,462 36,242 693
- --------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations 145,730,431 150,083,017 8,576,021
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income
FST shares (129,166,508) (130,327,458) (6,272,136)
FST Preferred shares (3,743,864) (1,969,544) (2,107,664)
FST Administration
shares (7,786,285) (9,747,419) (89,496)
FST Service shares (5,028,312) (8,002,354) (106,032)
Net realized gain on
investment transactions
FST shares -- (26,348) (427)
FST Preferred shares (2,228) (688) (240)
FST Administration
shares (2,527) (118) (12)
FST Service shares (247) (6,248) (14)
- --------------------------------------------------------------------------------
Total distributions to
shareholders (145,729,971) (150,080,177) (8,576,021)
- --------------------------------------------------------------------------------
FROM SHARE TRANSACTIONS
(AT $1.00 PER SHARE):
Proceeds from sales of
shares 25,945,845,378 32,204,355,632 1,452,363,966
Reinvestment of dividends
and distributions 44,086,128 84,547,371 6,407,099
Cost of shares repurchased (25,412,402,010) (32,137,289,584) (1,317,616,348)
- --------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from share transactions 577,529,496 151,613,419 141,154,717
- --------------------------------------------------------------------------------
Total increase
(decrease) 577,529,956 151,616,259 141,154,717
NET ASSETS:
Beginning of period 4,438,246,389 4,904,336,743 221,021,289
- --------------------------------------------------------------------------------
End of period $ 5,015,776,345 $ 5,055,953,002 $ 362,176,006
- --------------------------------------------------------------------------------
Accumulated undistributed
net investment income -- -- --
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
24
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C>
TREASURY TREASURY TAX-FREE
OBLIGATIONS INSTRUMENTS GOVERNMENT FEDERAL MONEY MARKET
FUND FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------
$ 114,225,292 $ 8,548,473 $ 67,966,489 $ 54,309,710 $ 20,680,386
574,184 67,653 -- 6,087 4,011
- ---------------------------------------------------------------------------------------
114,799,476 8,616,126 67,966,489 54,315,797 20,684,397
- ---------------------------------------------------------------------------------------
(77,789,767) (7,694,107) (43,403,578) (34,987,205) (16,620,592)
(7,303,235) (40) (1,317,273) (5,293,797) (1,157,305)
(20,493,107) (450,176) (8,331,053) (8,599,736) (2,258,911)
(8,639,183) (404,150) (14,914,585) (5,435,699) (643,578)
(255,515) (62,302) -- -- --
(32,063) -- -- -- --
(111,334) (3,503) -- -- --
(38,326) (3,163) -- -- --
- ---------------------------------------------------------------------------------------
(114,662,530) (8,617,441) (67,966,489) (54,316,437) (20,680,386)
- ---------------------------------------------------------------------------------------
22,768,192,428 992,598,068 14,079,991,101 5,870,298,717 4,419,204,263
45,213,100 2,926,026 18,129,426 26,760,867 8,123,445
(21,499,090,045) (1,193,093,017) (13,579,340,300) (5,865,279,054) (4,088,394,300)
- ---------------------------------------------------------------------------------------
1,314,315,483 (197,568,923) 518,780,227 31,780,530 338,933,408
- ---------------------------------------------------------------------------------------
1,314,452,429 (197,570,238) 518,780,227 31,779,890 338,937,419
3,515,154,043 520,757,016 2,365,690,113 2,173,837,437 1,120,186,163
- ---------------------------------------------------------------------------------------
$ 4,829,606,472 $ 323,186,778 $ 2,884,470,340 $ 2,205,617,327 $ 1,459,123,582
- ---------------------------------------------------------------------------------------
-- -- -- $ 1,586 $ --
- ---------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------- ---------------------------------------
25
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME PREMIUM
OBLIGATIONS MONEY MARKET MONEY MARKET
FUND FUND FUND(A)
--------------------------------------------------
<S> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 277,979,593 $ 266,229,854 $ 4,194,052
Net realized gain (loss) on
investment transactions 15,992 32,849 --
- --------------------------------------------------------------------------------
Net increase in net assets
resulting from operations 277,995,585 266,262,703 4,194,052
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income
FST shares (247,361,553) (231,700,902) (3,890,656)
FST Preferred shares (9,751,263) (3,010,280) (7,210)
FST Administration shares (13,824,313) (16,410,842) (295,011)
FST Service shares (7,042,464) (15,107,830) (1,175)
Net realized gain on
investment transactions
FST shares (22,695) (24,966) --
FST Preferred shares (752) (571) --
FST Administration shares (1,302) (31) --
FST Service shares (464) (6,853) --
- --------------------------------------------------------------------------------
Total distributions to
shareholders (278,004,806) (266,262,275) (4,194,052)
- --------------------------------------------------------------------------------
FROM SHARE TRANSACTIONS (AT
$1.00 PER SHARE):
Proceeds from sales of
shares 53,179,415,600 68,053,947,094 1,075,863,230
Reinvestment of dividends
and distributions 112,453,328 134,114,443 1,495,718
Cost of shares repurchased (53,213,589,524) (66,241,742,997) (856,337,659)
- --------------------------------------------------------------------------------
Net increase in net assets
resulting from share
transactions 78,279,404 1,946,318,540 221,021,289
- --------------------------------------------------------------------------------
Total increase 78,270,183 1,946,318,968 221,021,289
NET ASSETS:
Beginning of period 4,359,976,206 2,958,017,775 --
- --------------------------------------------------------------------------------
End of period $ 4,438,246,389 $ 4,904,336,743 $ 221,021,289
- --------------------------------------------------------------------------------
Accumulated undistributed
net investment income -- -- --
- --------------------------------------------------------------------------------
</TABLE>
(a) Commencement dates of operations for the Premium Money Market, Treasury
Instruments and the Federal Fund were August 1, 1997, March 3, 1997 and
February 28, 1997, respectively.
- --------------------------------------- ---------------------------------------
The accompanying notes are an integral
part of the financial statements
26
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C>
TREASURY TREASURY TAX-FREE
OBLIGATIONS INSTRUMENTS GOVERNMENT FEDERAL MONEY MARKET
FUND FUND(A) FUND FUND(A) FUND
- ---------------------------------------------------------------------------------------
$ 165,098,980 $ 11,388,062 $ 110,081,406 $ 50,895,735 $ 28,536,346
300,712 89,851 127,727 (7,673) (2,081)
- ---------------------------------------------------------------------------------------
165,399,692 11,477,913 110,209,133 50,888,062 28,534,265
- ---------------------------------------------------------------------------------------
(112,020,839) (10,293,085) (70,362,803) (35,377,629) (23,828,347)
(5,711,597) (45) (1,492,230) (3,504,242) (542,008)
(35,669,978) (62,666) (13,365,067) (7,278,709) (3,161,663)
(11,696,566) (1,032,266) (24,861,306) (4,726,842) (1,004,328)
(253,465) (78,370) (94,763) -- --
(9,681) (1) (1,310) -- --
(92,228) (459) (15,668) -- --
(25,376) (9,643) (42,470) -- --
- ---------------------------------------------------------------------------------------
(165,479,730) (11,476,535) (110,235,617) (50,887,422) (28,536,346)
- ---------------------------------------------------------------------------------------
30,901,418,469 1,886,752,702 20,842,203,467 7,175,698,490 6,856,129,085
61,924,789 3,001,270 30,237,427 17,286,075 8,395,593
(30,543,252,110) (1,368,998,334) (19,734,267,186) (5,019,147,768) (6,285,421,492)
- ---------------------------------------------------------------------------------------
420,091,148 520,755,638 1,138,173,708 2,173,836,797 579,103,186
- ---------------------------------------------------------------------------------------
420,011,110 520,757,016 1,138,147,224 2,173,837,437 579,101,105
3,095,142,933 -- 1,227,542,889 -- 541,085,058
- ---------------------------------------------------------------------------------------
$ 3,515,154,043 $ 520,757,016 $ 2,365,690,113 $ 2,173,837,437 $ 1,120,186,163
- ---------------------------------------------------------------------------------------
-- -- -- $ 8,313 --
- ---------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------- ---------------------------------------
27
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
1. ORGANIZATION
The Goldman Sachs Trust (the "Trust") is a Delaware business trust registered
under the Investment Company Act of 1940 (as amended) as an open-end management
investment company. The Trust includes the Financial Square Funds, collectively
"the Funds" or individually a "Fund". Financial Square consists of nine
diversified funds: Prime Obligations, Money Market, Premium Money Market,
Treasury Obligations, Treasury Instruments, Government, Federal, Tax-Free Money
Market and Municipal Money Market (inactive as of June 30, 1998). The Financial
Square Funds offer four classes of shares: FST shares, FST Preferred shares,
FST Administration shares and FST Service 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, 1997, the Funds' tax year end, the following funds had capital
loss carryforwards for U.S. Federal tax purposes of approximately:
<TABLE>
<CAPTION>
Years of
Fund Amount Expiration
---- ------- ----------
<S> <C> <C>
Federal..................................................... $ 7,000 2005
Tax-Free Money Market....................................... 15,000 2003-2005
</TABLE>
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 generally 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 such shares.
---------------------------------------
- ---------------------------------------
28
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
3. AGREEMENTS
Pursuant to the Investment Management Agreement (the "Agreement"), Goldman
Sachs Asset Management ("GSAM"), a separate operating division of Goldman,
Sachs & Co. ("Goldman Sachs"), 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, 1998, GSAM has voluntarily agreed to waive a
portion of its management fee. In addition, GSAM has limited certain of each of
the Fund's expenses (excluding management fees, service organization fees,
taxes, interest, brokerage commissions, litigation, indemnification and other
extraordinary expenses) to the extent that such expenses exceed .01% per annum
of the Fund's average daily net assets. The outstanding amounts to be
reimbursed by the Adviser are included in "Other assets" in the accompanying
Statement of Assets and Liabilities where applicable.
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, 1998 and amounts owed to and due from GSAM at
June 30, 1998 (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 $931 $327 $1,258 $754 $187
- -------------------------------------------------------------
Money
Market Fund 960 66 1,026 824 --
- -------------------------------------------------------------
Premium Money
Market Fund 135 138 273 49 59
- -------------------------------------------------------------
Treasury
Obligations
Fund 754 327 1,081 672 170
- -------------------------------------------------------------
Treasury
Instruments
Fund 59 132 191 44 58
- -------------------------------------------------------------
Government Fund 449 149 598 374 3
- -------------------------------------------------------------
Federal Fund 360 115 475 347 --
- -------------------------------------------------------------
Tax-Free Money
Market Fund 216 90 306 219 34
</TABLE>
4. PREFERRED, ADMINISTRATION AND SERVICE PLANS
The Funds have adopted Preferred, Administration and Service 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.
---------------------------------------
- ---------------------------------------
29
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
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 total bank borrowings. The interest rate on the
borrowings is based on the Federal Funds rate. During the six months ended June
30, 1998, 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.
At June 30, 1998, the Prime Obligations, Money Market, Premium Money Market,
Treasury Obligations and Government Funds had undivided interests in the
repurchase agreements in the following joint account, which equaled
$176,300,000, $104,600,000, $88,200,000, $2,039,000,000 and $152,000,000 in
principal amount, respectively. At June 30, 1998, 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>
Donaldson, Lufkin & Jenrette, Inc., dated 06/30/98, repurchase price
$700,113,750 (total collateral value $714,000,528 consisting of U.S.
Treasury Stripped Interest Only Securities: 08/15/98-05/15/08; U.S.
Treasury Stripped Principal Only Securities: 7.75%-11.63%, 02/15/99-
08/15/05)
$700,000,000 5.85% 07/01/1998 $700,000,000
Morgan Stanley Dean Witter, Inc., dated 06/30/98, repurchase price
$825,136,354 (total collateral value $841,583,488 consisting of U.S.
Treasury Bills: 10/08/98-04/29/99)
825,000,000 5.95 07/01/1998 825,000,000
Salomon-Smith Barney, dated 06/30/98, repurchase price $900,148,750 (total
collateral value $919,161,768 consisting of U.S. Treasury Bill: 08/20/98;
U.S. Treasury Stripped Interest Only Securities: 05/15/05-05/15/06; U.S.
Treasury Stripped Principal Only Security: 11.63%, 11/15/04)
900,000,000 5.95 07/01/1998 900,000,000
Swiss Bank Corp., dated 06/30/98, repurchase price $983,759,835 (total
collateral value $1,004,172,534 consisting of U.S. Treasury Inflation
Indexed Notes: 3.38%-3.63%, 07/15/02-01/15/08, U.S. Treasury Notes:
5.13%-8.88%, 11/15/98-05/15/07)
983,600,000 5.85 07/01/1998 983,600,000
- ---------------------------------------------------------------------------------------------
Total Joint Repurchase Agreement Account $3,408,600,000
- ---------------------------------------------------------------------------------------------
</TABLE>
---------------------------------------
- ---------------------------------------
30
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
At June 30, 1998, the Prime Obligations and Money Market Funds had undivided
interests in the repurchase agreements in the following joint account, which
equaled $400,000,000 and $50,000,000 in principal amount, respectively. At June
30, 1998, 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>
CIBC Oppenheimer, Inc., dated 06/30/98, repurchase price $250,039,583
(total collateral value $255,475,165 consisting of FHLMC:
7.00%, 12/01/27)
$250,000,000 5.70% 07/01/1998 $ 250,000,000
Lehman Brothers Inc., dated 06/30/98, repurchase price $300,050,000 (total
collateral value $305,999,913 consisting of FHLMC: 6.00%-12.50%,
09/01/98-06/01/28; FNMA: 6.00%-9.50%, 03/01/02-08/01/26)
300,000,000 6.00 07/01/1998 300,000,000
Lehman Brothers Inc., dated 06/30/98, repurchase price $270,043,875 (total
collateral value $275,398,468 consisting of FHLMC: 5.50%-12.00%,
10/01/98-11/01/27; FNMA: 6.29%-9.50%, 05/01/02-07/01/25)
270,000,000 5.85 07/01/1998 270,000,000
Salomon-Smith Barney, dated 06/30/98, repurchase price $264,442,231 (total
collateral value $269,848,754 consisting of U.S. Treasury Stripped
Interest Only Security: 05/14/04; U.S. Treasury Stripped Principal Only
Securities: 7.50%-8.75%, 08/15/00-11/15/01)
264,400,000 5.75 07/01/1998 264,400,000
- ---------------------------------------------------------------------------------------------
Total Joint Repurchase Agreement Account II $1,084,400,000
- ---------------------------------------------------------------------------------------------
</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.
---------------------------------------
- ---------------------------------------
31
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
9. SUMMARY OF SHARE TRANSACTIONS
Share activity for the six months ended June 30, 1998 is as follows:
<TABLE>
<CAPTION>
PRIME PREMIUM
OBLIGATIONS MONEY MARKET MONEY MARKET
FUND FUND FUND
<S> <C> <C> <C>
FST SHARES:
Shares sold 22,603,760,928 30,070,649,979 1,277,994,827
Reinvestment of dividends
and distributions 38,373,839 73,914,649 4,880,003
Shares repurchased (22,145,268,408) (30,128,614,402) (1,301,706,510)
- -------------------------------------------------------------------------------
496,866,359 15,950,226 (18,831,680)
- -------------------------------------------------------------------------------
FST PREFERRED SHARES:
Shares sold 614,566,920 312,542,020 149,443,352
Reinvestment of dividends
and distributions 491,431 1,681,091 1,506,709
Shares repurchased (626,018,102) (270,326,686) (6,060,803)
- -------------------------------------------------------------------------------
(10,959,751) 43,896,425 144,889,258
- -------------------------------------------------------------------------------
FST ADMINISTRATION SHARES:
Shares sold 1,144,991,597 1,215,262,813 6,718,381
Reinvestment of dividends
and distributions 2,382,671 7,204,185 6,501
Shares repurchased (1,110,412,611) (1,113,283,370) (35,161)
- -------------------------------------------------------------------------------
36,961,657 109,183,628 6,689,721
- -------------------------------------------------------------------------------
FST SERVICE SHARES:
Shares sold 1,582,525,933 605,900,820 18,207,406
Reinvestment of dividends
and distributions 2,838,187 1,747,446 13,886
Shares repurchased (1,530,702,889) (625,065,126) (9,813,874)
- -------------------------------------------------------------------------------
54,661,231 (17,416,860) 8,407,418
- -------------------------------------------------------------------------------
Net increase (decrease) in
shares 577,529,496 151,613,419 141,154,717
- -------------------------------------------------------------------------------
</TABLE>
- --------------------------------------- ---------------------------------------
32
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY TREASURY TAX-FREE
OBLIGATIONS INSTRUMENTS GOVERNMENT FEDERAL MONEY MARKET
FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C>
16,439,304,500 913,719,454 9,793,430,920 3,684,526,338 3,662,616,153
28,866,643 2,560,395 14,332,274 16,510,073 7,047,656
(15,341,497,104) (1,126,193,909) (9,902,109,269) (3,536,848,884) (3,422,026,668)
- ----------------------------------------------------------------------------------
1,126,674,039 (209,914,060) (94,346,075) 164,187,527 247,637,141
- ----------------------------------------------------------------------------------
1,010,165,423 -- 307,008,296 110,282,150 292,683,553
2,779,857 39 480,714 5,357,060 72,347
(994,161,146) -- (221,513,377) (94,718,014) (223,517,718)
- ----------------------------------------------------------------------------------
18,784,134 39 85,975,633 20,921,196 69,238,182
- ----------------------------------------------------------------------------------
2,767,697,061 52,033,645 2,303,636,749 1,012,188,618 298,845,625
6,954,462 361,356 1,844,679 2,313,336 759,140
(2,654,950,416) (36,789,446) (1,962,976,878) (1,185,064,679) (277,267,547)
- ----------------------------------------------------------------------------------
119,701,107 15,605,555 342,504,550 (170,562,725) 22,337,218
- ----------------------------------------------------------------------------------
2,551,025,444 26,844,969 1,675,915,135 1,063,301,611 165,058,932
6,612,138 4,236 1,471,760 2,580,398 244,302
(2,508,481,379) (30,109,662) (1,492,740,776) (1,048,647,477) (165,582,367)
- ----------------------------------------------------------------------------------
49,156,203 (3,260,457) 184,646,119 17,234,532 (279,133)
- ----------------------------------------------------------------------------------
1,314,315,483 (197,568,923) 518,780,227 31,780,530 338,933,408
- ----------------------------------------------------------------------------------
</TABLE>
- --------------------------------------- ---------------------------------------
33
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1998
- --------------------------------------------------------------------------------
Share activity for the year ended December 31, 1997 is as follows:
<TABLE>
<CAPTION>
PRIME PREMIUM
OBLIGATIONS MONEY MARKET MONEY MARKET
FUND FUND FUND(A)
<S> <C> <C> <C>
FST SHARES:
Shares sold 47,147,215,061 63,982,789,001 1,031,854,202
Reinvestment of dividends
and distributions 103,377,234 118,914,805 1,491,071
Shares repurchased (47,284,643,891) (62,295,549,107) (815,152,881)
- ------------------------------------------------------------------------------
(34,051,596) 1,806,154,699 218,192,392
- ------------------------------------------------------------------------------
FST PREFERRED SHARES:
Shares sold 1,624,299,212 754,498,086 553,233
Reinvestment of dividends
and distributions 1,010,173 1,861,300 4,594
Shares repurchased (1,599,668,091) (753,611,334) --
- ------------------------------------------------------------------------------
25,641,294 2,748,052 557,827
- ------------------------------------------------------------------------------
FST ADMINISTRATION SHARES:
Shares sold 2,052,177,068 2,237,080,367 42,641,449
Reinvestment of dividends
and distributions 4,016,672 11,388,582 27
Shares repurchased (2,030,483,474) (2,192,980,303) (41,184,778)
- ------------------------------------------------------------------------------
25,710,266 55,488,646 1,456,698
- ------------------------------------------------------------------------------
FST SERVICE SHARES:
Shares sold 2,355,724,259 1,079,579,640 814,346
Reinvestment of dividends
and distributions 4,049,249 1,949,756 26
Shares repurchased (2,298,794,068) (999,602,253) --
- ------------------------------------------------------------------------------
60,979,440 81,927,143 814,372
- ------------------------------------------------------------------------------
Net increase in shares 78,279,404 1,946,318,540 221,021,289
- ------------------------------------------------------------------------------
</TABLE>
(a) Commencement date of operations for the Premium Money Market, Treasury
Instruments and the Federal Fund was August 1, 1997, March 3, 1997 and
February 28, 1997, respectively.
- --------------------------------------- ---------------------------------------
34
<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>
21,293,469,586 1,757,063,242 16,068,538,976 4,332,722,729 6,019,992,055
39,794,793 2,990,503 25,573,363 11,815,388 6,844,739
(21,406,328,023) (1,263,635,000) (15,474,321,199) (3,218,857,211) (5,528,265,772)
- -----------------------------------------------------------------------------------
(73,063,644) 496,418,745 619,791,140 1,125,680,906 498,571,022
- -----------------------------------------------------------------------------------
1,389,183,384 1,500 141,301,549 300,365,996 271,642,865
1,089,957 39 164,952 2,470,479 87,192
(1,191,548,937) -- (134,432,139) (108,461,498) (265,308,952)
- -----------------------------------------------------------------------------------
198,724,404 1,539 7,034,362 194,374,977 6,421,105
- -----------------------------------------------------------------------------------
5,271,440,356 9,051,015 2,286,537,497 1,298,319,389 271,268,796
12,077,349 5,093 2,533,048 1,136,485 865,271
(5,081,525,991) (4,897,093) (2,134,371,808) (674,121,929) (220,746,099)
- -----------------------------------------------------------------------------------
201,991,714 4,159,015 154,698,737 625,333,945 51,387,968
- -----------------------------------------------------------------------------------
2,947,325,143 120,636,945 2,345,825,445 1,244,406,778 293,225,369
8,962,690 5,635 1,966,064 1,747,321 598,391
(2,863,849,159) (100,466,241) (1,991,142,040) (1,017,707,130) (271,100,669)
- -----------------------------------------------------------------------------------
92,438,674 20,176,339 356,649,469 228,446,969 22,723,091
- -----------------------------------------------------------------------------------
420,091,148 520,755,638 1,138,173,708 2,173,836,797 579,103,186
- -----------------------------------------------------------------------------------
</TABLE>
- --------------------------------------- ---------------------------------------
35
<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(D)
------------------------------------
NET ASSET NET REALIZED TOTAL NET ASSET
VALUE AT NET GAIN INCOME FROM DISTRIBUTIONS VALUE AT
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT TO END TOTAL
OF PERIOD INCOME TRANSACTIONS OPERATIONS SHAREHOLDERS(D) OF PERIOD RETURN(A)
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------
1998-FST shares $1.00 $0.0273 $ -- $0.0273 $(0.0273) $1.00 5.59%(b)
1998-FST Pre-
ferred shares 1.00 0.0269 -- 0.0269 (0.0269) 1.00 5.46 (b)
1998-FST Admin-
istration shares 1.00 0.0261 -- 0.0261 (0.0261) 1.00 5.32 (b)
1998-FST Service
shares 1.00 0.0249 -- 0.0249 (0.0249) 1.00 5.06 (b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-FST
shares.......... 1.00 0.0546 -- 0.0546 (0.0546) 1.00 5.60
1997-FST Pre-
ferred shares... 1.00 0.0538 -- 0.0538 (0.0538) 1.00 5.50
1997-FST Admin-
istration
shares.......... 1.00 0.0522 -- 0.0522 (0.0522) 1.00 5.34
1997-FST Service
shares.......... 1.00 0.0498 -- 0.0498 (0.0498) 1.00 5.08
- -----------------------------------------------------------------------------------------------------
1996-FST
shares.......... 1.00 0.0529 -- 0.0529 (0.0529) 1.00 5.41
1996-FST Pre-
ferred
Shares (c)...... 1.00 0.0346 -- 0.0346 (0.0346) 1.00 5.28 (b)
1996-FST Admin-
istration
shares.......... 1.00 0.0506 -- 0.0506 (0.0506) 1.00 5.14
1996-FST Service
shares.......... 1.00 0.0478 -- 0.0478 (0.0478) 1.00 4.88
- -----------------------------------------------------------------------------------------------------
1995-FST
shares.......... 1.00 0.0586 -- 0.0586 (0.0586) 1.00 6.02
1995-FST Admin-
istration
shares.......... 1.00 0.0559 -- 0.0559 (0.0559) 1.00 5.75
1995-FST Service
shares.......... 1.00 0.0533 -- 0.0533 (0.0533) 1.00 5.49
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (e)...... 1.00 0.0401 -- 0.0401 (0.0401) 1.00 4.38 (b)
1994-FST Admin-
istration
Shares (e)...... 1.00 0.0383 -- 0.0383 (0.0383) 1.00 4.12 (b)
1994-FST Service
shares (e)...... 1.00 0.0364 -- 0.0364 (0.0364) 1.00 3.86 (b)
FOR THE YEARS ENDED JANUARY 31,
- -------------------------------
1994-FST
shares.......... 1.00 0.0311 0.0002 0.0313 (0.0313) 1.00 3.18
1994-FST Admin-
istration
shares.......... 1.00 0.0286 0.0002 0.0288 (0.0288) 1.00 2.92
1994-FST Service
shares.......... 1.00 0.0261 0.0002 0.0263 (0.0263) 1.00 2.66
- -----------------------------------------------------------------------------------------------------
1993-FST
shares.......... 1.00 0.0360 0.0007 0.0367 (0.0367) 1.00 3.75
1993-FST Admin-
istration
shares (c) 1.00 0.0068 0.0001 0.0069 (0.0069) 1.00 3.02 (b)
1993-FST Service
shares.......... 1.00 0.0301 0.0007 0.0308 (0.0308) 1.00 3.23
<CAPTION>
RATIOS ASSUMING NO
WAIVER OF FEES AND NO
EXPENSE LIMITATIONS
-------------------------
RATIO OF NET NET RATIO OF NET
RATIO OF NET INVESTMENT ASSETS AT RATIO OF INVESTMENT
EXPENSES TO INCOME TO END EXPENSES TO INCOME TO
AVERAGE NET AVERAGE NET OF PERIOD AVERAGE NET AVERAGE NET
ASSETS ASSETS (IN 000'S) ASSETS ASSETS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------
1998-FST shares 0.18%(b) 5.51%(b) $4,364,606 0.23%(b) 5.46%(b)
1998-FST Pre-
ferred shares 0.28(b) 5.42(b) 141,807 0.33(b) 5.37(b)
1998-FST Admin-
istration shares 0.43(b) 5.26(b) 278,569 0.48(b) 5.21(b)
1998-FST Service
shares 0.68(b) 5.01(b) 230,794 0.73(b) 4.96(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-FST
shares.......... 0.18 5.46 3,867,739 0.23 5.41
1997-FST Pre-
ferred shares... 0.28 5.38 152,767 0.33 5.33
1997-FST Admin-
istration
shares.......... 0.43 5.22 241,607 0.48 5.17
1997-FST Service
shares.......... 0.68 4.97 176,133 0.73 4.92
- -----------------------------------------------------------------------------------------------------
1996-FST
shares.......... 0.18 5.29 3,901,797 0.23 5.24
1996-FST Pre-
ferred
Shares (c)...... 0.28(b) 5.19(b) 127,126 0.33(b) 5.14(b)
1996-FST Admin-
istration
shares.......... 0.43 5.06 215,898 0.48 5.01
1996-FST Service
shares.......... 0.68 4.78 115,114 0.73 4.73
- -----------------------------------------------------------------------------------------------------
1995-FST
shares.......... 0.18 5.86 3,295,791 0.22 5.82
1995-FST Admin-
istration
shares.......... 0.43 5.59 147,894 0.47 5.55
1995-FST Service
shares.......... 0.68 5.33 65,278 0.72 5.29
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (e)...... 0.18(b) 4.38(b) 2,774,849 0.24(b) 4.32(b)
1994-FST Admin-
istration
Shares (e)...... 0.43(b) 4.18(b) 66,113 0.49(b) 4.12(b)
1994-FST Service
shares (e)...... 0.68(b) 3.98(b) 41,372 0.74(b) 3.92(b)
FOR THE YEARS ENDED JANUARY 31,
- -------------------------------
1994-FST
shares.......... 0.17 3.11 1,831,413 0.25 3.03
1994-FST Admin-
istration
shares.......... 0.42 2.86 35,250 0.50 2.78
1994-FST Service
shares.......... 0.67 2.61 14,001 0.75 2.53
- -----------------------------------------------------------------------------------------------------
1993-FST
shares.......... 0.18 3.60 813,126 0.25 3.53
1993-FST Admin-
istration
shares (c) 0.44(b) 2.96(b) 1,124 0.52(b) 2.88(b)
1993-FST Service
shares.......... 0.68 3.01 336 0.75 2.94
</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 and FST Administration share activity commenced May 1,
1996 and November 9, 1992, respectively.
(d) Calculated based on the average shares outstanding methodology.
(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.
36
<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(D)
------------------------------------
NET ASSET NET REALIZED TOTAL NET ASSET
VALUE AT NET GAIN INCOME FROM DISTRIBUTIONS VALUE AT
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT TO END TOTAL
OF PERIOD INCOME TRANSACTIONS OPERATIONS SHAREHOLDERS(D) OF PERIOD RETURN(A)
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------
1998-FST
shares.......... $1.00 $0.0274 $ -- $0.0274 $(0.0274) $1.00 5.59%(b)
1998-FST Pre-
ferred shares... 1.00 0.0268 -- 0.0268 (0.0268) 1.00 5.49(b)
1998-FST Admin-
istration
shares.......... 1.00 0.0261 -- 0.0261 (0.0261) 1.00 5.32(b)
1998-FST Service
shares.......... 1.00 0.0249 -- 0.0249 (0.0249) 1.00 5.06(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-FST
shares.......... 1.00 0.0550 -- 0.0550 (0.0550) 1.00 5.63
1997-FST Pre-
ferred shares... 1.00 0.0544 -- 0.0544 (0.0544) 1.00 5.53
1997-FST Admin-
istration
shares.......... 1.00 0.0526 -- 0.0526 (0.0526) 1.00 5.37
1997-FST Service
shares.......... 1.00 0.0499 -- 0.0499 (0.0499) 1.00 5.11
- -----------------------------------------------------------------------------------------------------
1996-FST
shares.......... 1.00 0.0533 0.0001 0.0534 (0.0534) 1.00 5.45
1996-FST Pre-
ferred
shares (c)...... 1.00 0.0348 -- 0.0348 (0.0348) 1.00 5.31(b)
1996-FST Admin-
istration
shares.......... 1.00 0.0504 0.0001 0.0505 (0.0505) 1.00 5.19
1996-FST Service
shares.......... 1.00 0.0484 -- 0.0484 (0.0484) 1.00 4.93
- -----------------------------------------------------------------------------------------------------
1995-FST
Shares.......... 1.00 0.0589 -- 0.0589 (0.0589) 1.00 6.07
1995-FST Admin-
istration
shares.......... 1.00 0.0561 -- 0.0561 (0.0561) 1.00 5.80
1995-FST Service
shares (c)...... 1.00 0.0231 -- 0.0231 (0.0231) 1.00 5.41(b)
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (c)...... 1.00 0.0305 -- 0.0305 (0.0305) 1.00 4.91(b)
1994-FST Admin-
istration
shares (c)...... 1.00 0.0298 -- 0.0298 (0.0298) 1.00 4.65(b)
<CAPTION>
RATIOS ASSUMING NO
WAIVER OF FEES AND NO
EXPENSE LIMITATIONS
-------------------------
RATIO OF NET NET RATIO OF NET
RATIO OF NET INVESTMENT ASSETS AT RATIO OF INVESTMENT
EXPENSES TO INCOME TO END EXPENSES TO INCOME TO
AVERAGE NET AVERAGE NET OF PERIOD AVERAGE NET AVERAGE NET
ASSETS ASSETS (IN 000'S) ASSETS ASSETS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------
1998-FST
shares.......... 0.18%(b) 5.52%(b) $4,362,472 0.22%(b) 5.48%(b)
1998-FST Pre-
ferred shares... 0.28(b) 5.41(b) 64,155 0.32(b) 5.37(b)
1998-FST Admin-
istration
shares.......... 0.43(b) 5.26(b) 330,439 0.47(b) 5.22(b)
1998-FST Service
shares.......... 0.68(b) 5.01(b) 298,887 0.72(b) 4.97(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-FST
shares.......... 0.18 5.50 4,346,519 0.23 5.45
1997-FST Pre-
ferred shares... 0.28 5.44 20,258 0.33 5.39
1997-FST Admin-
istration
shares.......... 0.43 5.26 221,256 0.48 5.21
1997-FST Service
shares.......... 0.68 4.99 316,304 0.73 4.94
- -----------------------------------------------------------------------------------------------------
1996-FST
shares.......... 0.18 5.33 2,540,366 0.23 5.28
1996-FST Pre-
ferred
shares (c)...... 0.28(b) 5.23(b) 17,510 0.33(b) 5.18(b)
1996-FST Admin-
istration
shares.......... 0.43 5.04 165,766 0.48 4.99
1996-FST Service
shares.......... 0.68 4.84 234,376 0.73 4.79
- -----------------------------------------------------------------------------------------------------
1995-FST
Shares.......... 0.15 5.89 2,069,197 0.23 5.81
1995-FST Admin-
istration
shares.......... 0.40 5.61 137,412 0.48 5.53
1995-FST Service
shares (c)...... 0.65(b) 4.93(b) 4,219 0.73(b) 4.85(b)
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (c)...... 0.11(b) 4.88(b) 862,971 0.25(b) 4.74(b)
1994-FST Admin-
istration
shares (c)...... 0.36(b) 4.82(b) 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 share, FST Preferred share, FST Administration share and FST Service
share activity commenced May 18, 1994, May 1, 1996, May 20, 1994 and July
14, 1995, respectively.
(d) Calculated based on the average shares outstanding methodology.
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
37
<PAGE>
Goldman Sachs Trust--Financial Square Funds
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
Selected Data for a Share Outstanding Throughout Each Period
Premium Money Market Fund
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS(D)
------------------------------------
NET ASSET NET REALIZED TOTAL NET ASSET
VALUE AT NET GAIN INCOME FROM DISTRIBUTIONS VALUE AT
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT TO END TOTAL
OF PERIOD INCOME TRANSACTIONS OPERATIONS SHAREHOLDERS(D) OF PERIOD RETURN(A)
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------
1998-FST
shares.......... $1.00 $0.0275 -- $0.0275 $(0.0275) $1.00 5.59%(b)
1998-FST Pre-
ferred shares... 1.00 0.0268 -- 0.0268 (0.0268) 1.00 5.49(b)
1998-FST Admin-
istration
shares.......... 1.00 0.0261 -- 0.0261 (0.0261) 1.00 5.32(b)
1998-FST Service
shares.......... 1.00 0.0248 -- 0.0248 (0.0248) 1.00 5.08(b)
FOR THE PERIOD AUGUST 1, 1997(C) THROUGH DECEMBER 31,
- -----------------------------------------------------
1997-FST
shares.......... 1.00 0.0235 -- 0.0235 (0.0235) 1.00 5.73(b)
1997-FST Pre-
ferred Shares... 1.00 0.0228 -- 0.0228 (0.0228) 1.00 5.62(b)
1997-FST Admin-
istration
shares.......... 1.00 0.0223 -- 0.0223 (0.0223) 1.00 5.47(b)
1997-FST Service
shares.......... 1.00 0.0217 -- 0.0217 (0.0217) 1.00 5.20(b)
<CAPTION>
RATIOS ASSUMING NO
WAIVER OF FEES AND NO
EXPENSE LIMITATIONS
-------------------------
NET
RATIO OF NET ASSETS AT RATIO OF NET
RATIO OF NET INVESTMENT END RATIO OF INVESTMENT
EXPENSES TO INCOME TO OF PERIOD EXPENSES TO INCOME TO
AVERAGE NET AVERAGE NET (IN AVERAGE NET AVERAGE NET
ASSETS ASSETS 000'S) ASSETS ASSETS
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------
1998-FST
shares.......... 0.13%(b) 5.54%(b) $199,361 0.31%(b) 5.36%(b)
1998-FST Pre-
ferred shares... 0.23(b) 5.40(b) 145,447 0.41(b) 5.22(b)
1998-FST Admin-
istration
shares.......... 0.38(b) 5.26(b) 8,146 0.56(b) 5.08(b)
1998-FST Service
shares.......... 0.63(b) 5.01(b) 9,222 0.81(b) 4.83(b)
FOR THE PERIOD AUGUST 1, 1997(C) THROUGH DECEMBER 31,
- -----------------------------------------------------
1997-FST
shares.......... 0.08(b) 5.59(b) 218,192 0.43(b) 5.24(b)
1997-FST Pre-
ferred Shares... 0.18(b) 5.50(b) 558 0.53(b) 5.15(b)
1997-FST Admin-
istration
shares.......... 0.33(b) 5.33(b) 1,457 0.68(b) 4.98(b)
1997-FST Service
shares.......... 0.58(b) 5.17(b) 814 0.93(b) 4.82(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) Commencement of operations.
(d) Calculated based on the average shares outstanding methodology.
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
38
<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(D)
------------------------------------
NET ASSET NET REALIZED TOTAL NET ASSET
VALUE AT NET GAIN (LOSS) INCOME FROM DISTRIBUTIONS VALUE AT
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT TO END TOTAL
OF PERIOD INCOME TRANSACTIONS OPERATIONS SHAREHOLDERS(D) OF PERIOD RETURN(A)
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------
1998-FST
shares.......... $1.00 $0.0267 $ 0.0001 $0.0268 $(0.0268) $1.00 5.49%(b)
1998-FST Pre-
ferred shares... 1.00 0.0273 0.0001 0.0274 (0.0274) 1.00 5.38(b)
1998-FST Admin-
istration
shares.......... 1.00 0.0255 0.0001 0.0256 (0.0256) 1.00 5.22(b)
1998-FST Service
shares.......... 1.00 0.0243 0.0001 0.0244 (0.0244) 1.00 4.96(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-FST
shares.......... 1.00 0.0536 0.0001 0.0537 (0.0537) 1.00 5.50
1997-FST Pre-
ferred shares... 1.00 0.0532 0.0001 0.0533 (0.0533) 1.00 5.40
1997-FST Admin-
istration
shares.......... 1.00 0.0512 0.0001 0.0513 (0.0513) 1.00 5.24
1997-FST Service
shares.......... 1.00 0.0487 0.0001 0.0488 (0.0488) 1.00 4.98
- -----------------------------------------------------------------------------------------------------
1996-FST
shares.......... 1.00 0.0522 0.0003 0.0525 (0.0524) 1.00 5.35
1996-FST Pre-
ferred
shares (c)...... 1.00 0.0342 0.0001 0.0343 (0.0343) 1.00 5.24(b)
1996-FST Admin-
istration shares
................ 1.00 0.0497 0.0002 0.0499 (0.0498) 1.00 5.09
1996-FST Service
shares ......... 1.00 0.0472 0.0002 0.0474 (0.0474) 1.00 4.83
- -----------------------------------------------------------------------------------------------------
1995-FST shares
................ 1.00 0.0573 0.0005 0.0578 (0.0578) 1.00 5.96
1995-FST Admin-
istration shares
................ 1.00 0.0547 0.0005 0.0552 (0.0552) 1.00 5.69
1995-FST Service
shares ......... 1.00 0.0521 0.0005 0.0526 (0.0526) 1.00 5.43
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (e)...... 1.00 0.0379 (0.0001) 0.0378 (0.0378) 1.00 4.23(b)
1994-FST Admin-
istration
shares (e)...... 1.00 0.0388 (0.0001) 0.0387 (0.0387) 1.00 3.97(b)
1994-FST Service
shares (e)...... 1.00 0.0349 (0.0001) 0.0348 (0.0348) 1.00 3.71(b)
FOR THE YEARS ENDED JANUARY 31,
- -------------------------------
1994-FST
shares.......... 1.00 0.0301 0.0007 0.0308 (0.0307) 1.00 3.11
1994-FST Admin-
istration shares
................ 1.00 0.0276 0.0006 0.0282 (0.0281) 1.00 2.85
1994-FST Service
shares ......... 1.00 0.0251 0.0008 0.0259 (0.0256) 1.00 2.60
- -----------------------------------------------------------------------------------------------------
1993-FST shares
................ 1.00 0.0342 0.0012 0.0354 (0.0355) 1.00 3.69
1993-FST Admin-
istration
shares (c)...... 1.00 0.0009 -- 0.0009 (0.0009) 1.00 2.83(b)
1993-FST Service
shares ......... 1.00 0.0296 0.0016 0.0312 (0.0309) 1.00 3.17
<CAPTION>
RATIOS ASSUMING NO
WAIVER OF FEES AND NO
EXPENSE LIMITATIONS
-------------------------
RATIO OF NET NET RATIO OF NET
RATIO OF NET INVESTMENT ASSETS AT RATIO OF INVESTMENT
EXPENSES TO INCOME TO END EXPENSES TO INCOME TO
AVERAGE NET AVERAGE NET OF PERIOD AVERAGE NET AVERAGE NET
ASSETS ASSETS (IN 000'S) ASSETS ASSETS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------
1998-FST
shares.......... 0.18%(b) 5.37%(b) $3,344,701 0.23%(b) 5.32%(b)
1998-FST Pre-
ferred shares... 0.28(b) 5.51(b) 264,148 0.33(b) 5.46(b)
1998-FST Admin-
istration
shares.......... 0.43(b) 5.15(b) 858,599 0.48(b) 5.10(b)
1998-FST Service
shares.......... 0.68(b) 4.89(b) 362,158 0.73(b) 4.84(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-FST
shares.......... 0.18 5.36 2,217,943 0.23 5.31
1997-FST Pre-
ferred shares... 0.28 5.32 245,355 0.33 5.27
1997-FST Admin-
istration
shares.......... 0.43 5.12 738,865 0.48 5.07
1997-FST Service
shares.......... 0.68 4.87 312,991 0.73 4.82
- -----------------------------------------------------------------------------------------------------
1996-FST
shares.......... 0.18 5.22 2,291,051 0.24 5.16
1996-FST Pre-
ferred
shares (c)...... 0.28(b) 5.11(b) 46,637 0.34(b) 5.05(b)
1996-FST Admin-
istration shares
................ 0.43 4.97 536,895 0.49 4.91
1996-FST Service
shares ......... 0.68 4.72 220,560 0.74 4.66
- -----------------------------------------------------------------------------------------------------
1995-FST shares
................ 0.18 5.73 1,587,715 0.23 5.68
1995-FST Admin-
istration shares
................ 0.43 5.47 283,186 0.48 5.42
1995-FST Service
shares ......... 0.68 5.21 139,117 0.73 5.16
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (e)...... 0.18(b) 4.13(b) 958,196 0.25(b) 4.06(b)
1994-FST Admin-
istration
shares (e)...... 0.43(b) 4.24(b) 82,124 0.50(b) 4.17(b)
1994-FST Service
shares (e)...... 0.68(b) 3.82(b) 81,162 0.75(b) 3.75(b)
FOR THE YEARS ENDED JANUARY 31,
- -------------------------------
1994-FST
shares.......... 0.17 3.01 812,420 0.24 2.94
1994-FST Admin-
istration shares
................ 0.42 2.76 24,485 0.49 2.69
1994-FST Service
shares ......... 0.67 2.51 35,656 0.74 2.44
- -----------------------------------------------------------------------------------------------------
1993-FST shares
................ 0.18 3.42 776,181 0.26 3.34
1993-FST Admin-
istration
shares (c)...... 0.43(b) 2.83(b) 1 0.51(b) 2.75(b)
1993-FST Service
shares ......... 0.68 2.96 5,155 0.76 2.88
</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 and FST Administration share activity commenced May 1,
1996 and January 21, 1993, respectively.
(d) Calculated based on the average shares outstanding methodology.
(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.
39
<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(D)
------------------------------------
NET ASSET NET REALIZED TOTAL NET ASSET
VALUE AT NET GAIN INCOME FROM DISTRIBUTIONS VALUE AT
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT TO END TOTAL
OF PERIOD INCOME TRANSACTIONS OPERATIONS SHAREHOLDERS(D) OF PERIOD RETURN(A)
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------
1998-FST
shares.......... $1.00 $0.0252 $0.0002 $0.0254 $(0.0254) $1.00 5.18%(b)
1998-FST Pre-
ferred shares... 1.00 0.0256 -- 0.0256 (0.0256) 1.00 5.08(b)
1998-FST Admin-
istration
shares.......... 1.00 0.0241 0.0002 0.0243 (0.0243) 1.00 4.92(b)
1998-FST Service
shares.......... 1.00 0.0227 0.0002 0.0229 (0.0229) 1.00 4.68(b)
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1997-FST
shares (c)...... 1.00 0.0423 0.0004 0.0427 (0.0427) 1.00 5.25(b)
1997-FST Pre-
ferred
shares (c)...... 1.00 0.0296 -- 0.0296 (0.0296) 1.00 5.13(b)
1997-FST Admin-
istration
shares (c)...... 1.00 0.0364 0.0003 0.0367 (0.0367) 1.00 4.99(b)
1997-FST Service
shares (c)...... 1.00 0.0380 0.0003 0.0383 (0.0383) 1.00 4.71(b)
<CAPTION>
RATIOS ASSUMING NO
WAIVER OF FEES AND NO
EXPENSE LIMITATIONS
-------------------------
NET
RATIO OF NET ASSETS AT RATIO OF NET
RATIO OF NET INVESTMENT END RATIO OF INVESTMENT
EXPENSES TO INCOME TO OF PERIOD EXPENSES TO INCOME TO
AVERAGE NET AVERAGE NET (IN AVERAGE NET AVERAGE NET
ASSETS ASSETS 000'S) ASSETS ASSETS
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------
1998-FST
shares.......... 0.18%(b) 5.08%(b) $286,503 0.29%(b) 4.97%(b)
1998-FST Pre-
ferred shares... 0.28(b) 5.01(b) 2 0.39(b) 4.90(b)
1998-FST Admin-
istration
shares.......... 0.43(b) 4.85(b) 19,766 0.54(b) 4.74(b)
1998-FST Service
shares.......... 0.68(b) 4.58(b) 16,916 0.79(b) 4.47(b)
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1997-FST
shares (c)...... 0.18(b) 5.09(b) 496,419 0.29(b) 4.98(b)
1997-FST Pre-
ferred
shares (c)...... 0.28(b) 5.00(b) 2 0.39(b) 4.89(b)
1997-FST Admin-
istration
shares (c)...... 0.43(b) 4.84(b) 4,159 0.54(b) 4.73(b)
1997-FST Service
shares (c)...... 0.68(b) 4.62(b) 20,177 0.79(b) 4.51(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.
(d) Calculated based on the average shares outstanding methodology.
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
40
<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(D)
------------------------------------
NET ASSET NET REALIZED TOTAL NET ASSET
VALUE AT NET GAIN INCOME FROM DISTRIBUTIONS VALUE AT
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT TO END TOTAL
OF PERIOD INCOME TRANSACTIONS OPERATIONS SHAREHOLDERS(D) OF PERIOD RETURN(A)
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------
1998-FST
shares.......... $1.00 $0.0270 $ -- $0.0270 $(0.0270) $1.00 5.51%(b)
1998-FST Pre-
ferred shares... 1.00 0.0264 -- 0.0264 (0.0264) 1.00 5.40(b)
1998-FST Admin-
istration
shares.......... 1.00 0.0258 -- 0.0258 (0.0258) 1.00 5.26(b)
1998-FST Service
shares.......... 1.00 0.0245 -- 0.0245 (0.0245) 1.00 5.00(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-FST
shares.......... 1.00 0.0541 -- 0.0541 (0.0541) 1.00 5.54
1997-FST Pre-
ferred shares... 1.00 0.0534 -- 0.0534 (0.0534) 1.00 5.43
1997-FST Admin-
istration
shares.......... 1.00 0.0515 -- 0.0515 (0.0515) 1.00 5.28
1997-FST Service
shares.......... 1.00 0.0491 -- 0.0491 (0.0491) 1.00 5.02
- -----------------------------------------------------------------------------------------------------
1996-FST
shares.......... 1.00 0.0525 0.0001 0.0526 (0.0526) 1.00 5.38
1996-FST Pre-
ferred
shares (c)...... 1.00 0.0344 0.0001 0.0345 (0.0345) 1.00 5.26(b)
1996-FST Admin-
istration
shares.......... 1.00 0.0501 0.0001 0.0502 (0.0502) 1.00 5.12
1996-FST Service
shares.......... 1.00 0.0474 0.0001 0.0475 (0.0475) 1.00 4.86
- -----------------------------------------------------------------------------------------------------
1995-FST
shares.......... 1.00 0.0581 0.0001 0.0582 (0.0582) 1.00 6.00
1995-FST Admin-
istration
shares.......... 1.00 0.0554 0.0001 0.0555 (0.0555) 1.00 5.74
1995-FST Service
shares (c)...... 1.00 0.0320 -- 0.0320 (0.0320) 1.00 5.40(b)
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (e)...... 1.00 0.0424 -- 0.0424 (0.0424) 1.00 4.36(b)
1994-FST Admin-
istration
shares (e)...... 1.00 0.0426 -- 0.0426 (0.0426) 1.00 4.10(b)
FOR THE PERIOD ENDED JANUARY 31,
- --------------------------------
1993-FST
shares (c)...... 1.00 0.0256 0.0001 0.0257 (0.0257) 1.00 3.14(b)
1993-FST Admin-
istration
shares (c)...... 1.00 0.0120 0.0001 0.0121 (0.0121) 1.00 2.87(b)
<CAPTION>
RATIOS ASSUMING NO
WAIVER OF FEES AND NO
EXPENSE LIMITATIONS
-------------------------
RATIO OF NET NET RATIO OF NET
RATIO OF NET INVESTMENT ASSETS AT RATIO OF INVESTMENT
EXPENSES TO INCOME TO END EXPENSES TO INCOME TO
AVERAGE NET AVERAGE NET OF PERIOD AVERAGE NET AVERAGE NET
ASSETS ASSETS (IN 000'S) ASSETS ASSETS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------
1998-FST
shares.......... 0.18%(b) 5.45%(b) $1,384,193 0.23%(b) 5.40%(b)
1998-FST Pre-
ferred shares... 0.28(b) 5.33(b) 93,122 0.33(b) 5.28(b)
1998-FST Admin-
istration
shares.......... 0.43(b) 5.20(b) 642,309 0.48(b) 5.15(b)
1998-FST Service
shares.......... 0.68(b) 4.95(b) 764,846 0.73(b) 4.90(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-FST
shares.......... 0.18 5.41 1,478,539 0.24 5.35
1997-FST Pre-
ferred shares... 0.28 5.34 7,147 0.34 5.28
1997-FST Admin-
istration
shares.......... 0.43 5.15 299,804 0.49 5.09
1997-FST Service
shares.......... 0.68 4.91 580,200 0.74 4.85
- -----------------------------------------------------------------------------------------------------
1996-FST
shares.......... 0.18 5.25 858,769 0.24 5.19
1996-FST Pre-
ferred
shares (c)...... 0.28(b) 5.14(b) 112 0.34(b) 5.08(b)
1996-FST Admin-
istration
shares.......... 0.43 5.01 145,108 0.49 4.95
1996-FST Service
shares.......... 0.68 4.74 223,554 0.74 4.68
- -----------------------------------------------------------------------------------------------------
1995-FST
shares.......... 0.18 5.81 743,884 0.24 5.75
1995-FST Admin-
istration
shares.......... 0.43 5.54 82,386 0.49 5.48
1995-FST Service
shares (c)...... 0.68(b) 5.08(b) 14,508 0.74(b) 5.02(b)
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (e)...... 0.15(b) 4.64(b) 258,350 0.25(b) 4.54(b)
1994-FST Admin-
istration
shares (e)...... 0.40(b) 4.67(b) 54,253 0.50(b) 4.57(b)
FOR THE PERIOD ENDED JANUARY 31,
- --------------------------------
1993-FST
shares (c)...... 0.08(b) 3.10(b) 44,697 0.59(b) 2.59(b)
1993-FST Admin-
istration
shares (c)...... 0.35(b) 2.85(b) 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 share, FST Preferred share, FST Administration share and FST Service
share activity commenced April 6, 1993, May 1, 1996, September 1, 1993 and
May 16, 1995, respectively.
(d) Calculated based on the average shares outstanding methodology.
(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.
41
<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(D)
-----------------------------------
NET ASSET NET REALIZED TOTAL NET ASSET
VALUE AT NET GAIN ON INCOME FROM DISTRIBUTIONS VALUE AT
BEGINNING INVESTMENT INVESTMENT INVESTMENT TO END TOTAL
OF PERIOD INCOME TRANSACTIONS OPERATIONS SHAREHOLDERS(D) OF PERIOD RETURN(A)
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------
1998-FST
shares.......... $1.00 $0.0267 $ -- $0.0267 $(0.0267) $1.00 5.44%(b)
1998-FST Pre-
ferred shares... 1.00 0.0261 -- 0.0261 (0.0261) 1.00 5.34(b)
1998-FST
Administration
shares.......... 1.00 0.0256 -- 0.0256 (0.0256) 1.00 5.18(b)
1998-FST Service
shares.......... 1.00 0.0242 -- 0.0242 (0.0242) 1.00 4.94(b)
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1997-FST
shares(c)....... 1.00 0.0454 -- 0.0454 (0.0454) 1.00 5.51(b)
1997-FST Pre-
ferred
shares(c)....... 1.00 0.0311 -- 0.0311 (0.0311) 1.00 5.43(b)
1997-FST
Administration
shares(c)....... 1.00 0.0388 -- 0.0388 (0.0388) 1.00 5.27(b)
1997-FST Service
shares(c)....... 1.00 0.0379 -- 0.0379 (0.0379) 1.00 5.00(b)
<CAPTION>
RATIOS ASSUMING NO
WAIVER OF FEES AND NO
EXPENSE LIMITATIONS
-------------------------
RATIO OF NET NET RATIO OF NET
RATIO OF NET INVESTMENT ASSETS AT RATIO OF INVESTMENT
EXPENSES TO INCOME TO END EXPENSES TO INCOME TO
AVERAGE NET AVERAGE NET OF PERIOD AVERAGE NET AVERAGE NET
ASSETS ASSETS (IN 000'S) ASSETS ASSETS
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------
1998-FST
shares.......... 0.18%(b) 5.39%(b) $1,289,868 0.23%(b) 5.34%(b)
1998-FST Pre-
ferred shares... 0.28(b) 5.27(b) 215,296 0.33(b) 5.22(b)
1998-FST
Administration
shares.......... 0.43(b) 5.16(b) 454,771 0.48(b) 5.11(b)
1998-FST Service
shares.......... 0.68(b) 4.87(b) 245,682 0.73(b) 4.82(b)
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1997-FST
shares(c)....... 0.18(b) 5.39(b) 1,125,681 0.27(b) 5.30(b)
1997-FST Pre-
ferred
shares(c)....... 0.28(b) 5.26(b) 194,375 0.37(b) 5.17(b)
1997-FST
Administration
shares(c)....... 0.43(b) 5.15(b) 625,334 0.52(b) 5.06(b)
1997-FST Service
shares(c)....... 0.68(b) 4.78(b) 228,447 0.77(b) 4.69(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.
(d) Calculated based on the average shares outstanding methodology.
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
42
<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(D)
------------------------------------
NET ASSET NET REALIZED TOTAL NET ASSET
VALUE AT NET GAIN INCOME FROM DISTRIBUTIONS VALUE AT
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT TO END TOTAL
OF PERIOD INCOME TRANSACTIONS OPERATIONS SHAREHOLDERS(D) OF PERIOD RETURN(A)
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------
1998-FST
shares.......... $1.00 $0.0169 $ -- $0.0169 $(0.0169) $1.00 3.43%(b)
1998-FST Pre-
ferred shares... 1.00 0.0163 -- 0.0163 (0.0163) 1.00 3.33(b)
1998-FST Admin-
istration
shares.......... 1.00 0.0157 -- 0.0157 (0.0157) 1.00 3.17(b)
1998-FST Service
shares.......... 1.00 0.0144 -- 0.0144 (0.0144) 1.00 2.92(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-FST
shares.......... 1.00 0.0350 -- 0.0350 (0.0350) 1.00 3.54
1997-FST Pre-
ferred shares... 1.00 0.0339 -- 0.0339 (0.0339) 1.00 3.43
1997-FST Admin-
istration
shares.......... 1.00 0.0327 -- 0.0327 (0.0327) 1.00 3.28
1997-FST Service
shares.......... 1.00 0.0301 -- 0.0301 (0.0301) 1.00 3.02
1996-FST
shares.......... 1.00 0.0335 -- 0.0335 (0.0335) 1.00 3.39
1996-FST Pre-
ferred shares(c) 1.00 0.0218 -- 0.0218 (0.0218) 1.00 3.30(b)
1996-FST Admin-
istration
shares ......... 1.00 0.0310 -- 0.0310 (0.0310) 1.00 3.13
1996-FST Service
shares.......... 1.00 0.0285 -- 0.0285 (0.0285) 1.00 2.88
1995-FST
shares.......... 1.00 0.0381 -- 0.0381 (0.0381) 1.00 3.89
1995-FST Admin-
istration
shares.......... 1.00 0.0354 -- 0.0354 (0.0354) 1.00 3.63
1995-FST Service
shares.......... 1.00 0.0332 -- 0.0332 (0.0332) 1.00 3.38
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (c)...... 1.00 0.0156 -- 0.0156 (0.0156) 1.00 3.41(b)
1994-FST Admin-
istration
shares (c)...... 1.00 0.0136 -- 0.0136 (0.0136) 1.00 3.19(b)
1994-FST Service
shares (c)...... 1.00 0.0091 -- 0.0091 (0.0091) 1.00 3.11(b)
<CAPTION>
RATIOS ASSUMING NO
WAIVER OF FEES AND NO
EXPENSE LIMITATIONS
-------------------------
RATIO OF NET NET RATIO OF NET
RATIO OF NET INVESTMENT ASSETS AT RATIO OF INVESTMENT
EXPENSES TO INCOME TO END EXPENSES TO INCOME TO
AVERAGE NET AVERAGE NET OF PERIOD AVERAGE NET AVERAGE NET
ASSETS ASSETS (IN 000'S) ASSETS ASSETS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------
1998-FST
shares.......... 0.18%(b) 3.41%(b) $1,187,048 0.23%(b) 3.36%(b)
1998-FST Pre-
ferred shares... 0.28(b) 3.30(b) 104,390 0.33(b) 3.25(b)
1998-FST Admin-
istration
shares.......... 0.43(b) 3.16(b) 125,387 0.48(b) 3.11(b)
1998-FST Service
shares.......... 0.68(b) 2.91(b) 42,299 0.73(b) 2.86(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-FST
shares.......... 0.18 3.50 939,407 0.24 3.44
1997-FST Pre-
ferred shares... 0.28 3.39 35,152 0.34 3.33
1997-FST Admin-
istration
shares.......... 0.43 3.27 103,049 0.49 3.21
1997-FST Service
shares.......... 0.68 3.01 42,578 0.74 2.95
1996-FST
shares.......... 0.18 3.35 440,838 0.23 3.30
1996-FST Pre-
ferred shares(c) 0.28(b) 3.26(b) 28,731 0.33(b) 3.21(b)
1996-FST Admin-
istration
shares ......... 0.43 3.10 51,661 0.48 3.05
1996-FST Service
shares.......... 0.68 2.85 19,855 0.73 2.80
1995-FST
shares.......... 0.14 3.81 448,367 0.24 3.71
1995-FST Admin-
istration
shares.......... 0.39 3.54 20,939 0.49 3.44
1995-FST Service
shares.......... 0.64 3.32 19,860 0.74 3.22
FOR THE PERIOD ENDED DECEMBER 31,
- ---------------------------------
1994-FST
shares (c)...... 0.07(b) 3.42(b) 183,570 0.31(b) 3.18(b)
1994-FST Admin-
istration
shares (c)...... 0.32(b) 3.25(b) 2,042 0.56(b) 3.01(b)
1994-FST Service
shares (c)...... 0.57(b) 3.32(b) 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 share, FST Preferred share, FST Administration share and FST Service
share activity commenced July 19, 1994, May 1, 1996, August 1, 1994 and
September 23, 1994, respectively.
(d) Calculated based on the average shares outstanding methodology.
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
43
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
[This page intentionally left blank]
- ---------------------------------------
---------------------------------------
44
<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.
- --------------------------------------------------------------------------------
45
<PAGE>
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
Douglas C. Grip, President
Jesse Cole, Vice President
James A. Fitpatrick, Vice President
Anne Marcel, Vice President
Nancy L. Mucker, Vice President
John M. Perlowski, Treasurer
Michael J. Richman, Secretary
Howard B. Surloff, Assistant Secretary
Valerie A. Zondorak, Assistant Secretary
Investment Adviser,
Distributor and Transfer Agent
Goldman Sachs Funds Goldman
One New York Plaza, 41st Floor Sachs
New York, NY 10004 [LOGO]
