<PAGE>
Goldman Sachs Trust
INSTITUTIONAL LIQUID ASSETS
. Prime Obligations Portfolio
. Money Market Portfolio
. Government Portfolio
. Treasury Obligations Portfolio
. Treasury Instruments Portfolio
. Federal Portfolio
. Tax-Exempt Diversified Portfolio
. Tax-Exempt California Portfolio
. Tax-Exempt New York Portfolio
SEMIANNUAL REPORT [LOGO]
Goldman
June 30, 1998 Sachs
<PAGE>
- --------------------------------------------------------------------------------
GOLDMAN SACHS TRUST
INSTITUTIONAL LIQUID ASSETS
- --------------------------------------- ---------------------------------------
TAXABLE PORTFOLIOS
PRIME OBLIGATIONS PORTFOLIO. Securities of the U.S. Government, its agencies,
authorities and instrumentalities, obligations of U.S. banks, commercial paper
and other short-term obligations of U.S. companies, states, municipalities and
other entities, and repurchase agreements.
MONEY MARKET PORTFOLIO. 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.
GOVERNMENT PORTFOLIO. Securities of the U.S. Government, its agencies,
authorities and instrumentalities, and repurchase agreements relating to such
securities.
TREASURY OBLIGATIONS PORTFOLIO. Securities issued or guaranteed by the U.S
Treasury and repurchase agreements relating to such securities.
TREASURY INSTRUMENTS PORTFOLIO. Securities issued or guaranteed by the U.S.
Treasury, the interest income from which is generally exempt from state income
taxation.
FEDERAL PORTFOLIO. 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 PORTFOLIOS
TAX-EXEMPT DIVERSIFIED PORTFOLIO. A diversified portfolio of municipal
obligations issued by or on behalf of states, territories and possessions of
the United States and their political subdivisions, agencies, authorities and
instrumentalities, and the District of Columbia.
TAX-EXEMPT CALIFORNIA PORTFOLIO. A non-diversified portfolio consisting
primarily of municipal obligations issued by or on behalf of the State of
California and its political subdivisions, agencies and instrumentalities and
other obligations that are exempt from federal and California state income
taxes.
TAX-EXEMPT NEW YORK PORTFOLIO. A non-diversified portfolio consisting
primarily of municipal obligations issued by or on behalf of the State of New
York and its political subdivisions, agencies and instrumentalities and other
obligations that are exempt from federal, New York state and New York City
personal income taxes.
- --------------------------------------- ---------------------------------------
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
ILA PRIME OBLIGATIONS PORTFOLIO
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER AND CORPORATE OBLIGATIONS--34.1%
BANK HOLDING COMPANIES
Park Ave Receivable
$16,395,000 5.52% 07/10/98 $ 16,372,375
Receivables Capital Corp.
25,000,000 5.53 08/14/98 24,831,028
BUSINESS CREDIT INSTITUTIONS
Ford Motor Credit Company
10,000,000 5.49 07/24/98 9,964,925
General Electric Capital Corp.
5,000,000 5.43 08/24/98 4,959,275
25,000,000 5.53 09/02/98 24,758,063
COMMERCIAL BANKS
CP Trust Certificates Series 1996-1
35,000,000 5.84 03/30/99 35,000,000
RECEIVABLE/ASSET FINANCINGS
Asset Portfolio Fund
5,000,000 5.53 07/09/98 4,993,856
Corporate Receivables Corp.
10,000,000 5.53 07/22/98 9,967,742
15,000,000 5.52 09/10/98 14,836,700
Enterprise Funding Corp.
26,100,000 5.52 07/14/98 26,047,974
WCP Funding Inc.
40,000,000 5.54 09/04/98 39,601,333
SECURITY AND COMMODITY BROKERS, DEALERS AND SERVICES
Bear Stearns Companies, Inc.
10,000,000 5.53 07/29/98 9,957,028
20,000,000 5.52 09/15/98 19,766,933
Morgan Stanley Dean Witter
25,000,000 5.52 07/16/98 24,942,500
Salomon Smith Barney Holdings, Inc.
20,000,000 5.47 07/13/98 19,963,533
25,000,000 5.53 07/23/98 24,915,514
- --------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER AND CORPORATE OBLIGATIONS $310,878,779
- --------------------------------------------------------------------------------------------------
BANK NOTES--13.8%
Bank of Boston, N.A.
$10,000,000 5.99% 08/13/98 $ 10,000,000
10,000,000 5.97 10/21/98 10,000,000
10,000,000 5.76 03/31/99 10,000,000
10,000,000 5.74 04/15/99 9,996,977
Bank of New York
8,500,000 5.57 03/17/99 8,493,928
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BANK NOTES (CONTINUED)
FCC National Bank
$20,000,000 6.01% 07/06/98 $ 19,999,922
First Tennessee Bank, N.A.
10,000,000 5.65 03/02/99 9,996,791
10,000,000 5.82 04/30/99 9,995,234
Huntington National Bank
12,000,000 5.82 11/13/98 11,998,301
JP Morgan & Co., Inc.
5,000,000 5.75 03/10/99 5,000,000
Merrill Lynch & Co., Inc.
10,000,000 5.97 08/14/98 10,000,000
5,000,000 5.79 04/28/99 5,000,000
PNC Bank, N.A.
5,000,000 5.71 04/26/99 4,997,647
- --------------------------------------------------------------------------------------------------
TOTAL BANK NOTES $125,478,800
- --------------------------------------------------------------------------------------------------
TAXABLE MUNICIPAL NOTE--0.5%
Ocean Spray Cranberries, Inc.
$ 5,000,000 5.66% 05/01/08 $ 5,000,000
- --------------------------------------------------------------------------------------------------
TOTAL TAXABLE MUNICIPAL NOTE $ 5,000,000
- --------------------------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES(A)--39.4%
Bank One Texas
$25,000,000 5.47% 07/01/98 $ 25,000,000
Comerica Bank Detroit
25,000,000 5.55 06/10/99 24,983,818
Commonwealth Life Insurance Co.
20,000,000 5.81 05/06/99 20,000,000
Corestates Bank, N.A.
25,000,000 5.61 10/30/98 25,000,000
10,000,000 5.60 04/23/99 10,000,000
Dakota Certificates
10,000,000 5.51 07/23/98 9,966,328
15,000,000 5.51 09/10/98 14,836,996
FCC National Bank
10,000,000 5.32 07/28/98 9,999,425
First National Bank
10,000,000 5.52 06/02/99 9,993,214
First Tennessee Bank, N.A.
10,000,000 5.57 04/23/99 9,996,026
Ford Motor Credit Company
10,000,000 5.95 02/22/99 10,020,147
</TABLE>
---------------------------------------
- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
1
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
ILA PRIME OBLIGATIONS PORTFOLIO (continued)
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
VARIABLE RATE DEMAND NOTES (CONTINUED)
JP Morgan & Co., Inc.(c)
$30,000,000 5.55% 07/07/99 $ 29,982,450
Merrill Lynch & Co., Inc.
10,000,000 5.61 08/03/98 9,999,955
10,000,000 5.61 03/16/99 10,000,000
New York Life Insurance Co.
10,000,000 5.67 12/03/98 10,000,000
Old Kentucky Bank & Trust Co.
10,000,000 5.60 04/30/99 9,995,939
Pacific Mutual Life Insurance Co.
25,000,000 5.64 03/01/99 25,000,000
PNC Bank, N.A.
25,000,000 5.55 08/28/98 24,997,666
SMM Trust Series 1997-X
10,000,000 5.66 12/14/98 10,000,000
Southtrust Bank of Alabama, N.A.
5,000,000 5.57 04/21/99 4,998,027
25,000,000 5.54 06/14/99 24,984,774
U.S. Bank, N.A.
30,000,000 5.54 06/16/99 29,982,994
- ------------------------------------------------------------------------------------------------
TOTAL VARIABLE RATE DEMAND NOTES $359,737,759
- ------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT--7.7%
Bankers Trust Securities Corp.
$10,000,000 5.77% 05/21/99 $ 9,994,820
Crestar Bank
45,000,000 5.58 08/25/98 45,000,000
Mellon Bank, N.A.
15,000,000 5.57 09/08/98 15,000,000
- ------------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT $ 69,994,820
- ------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--7.6%
Joint Repurchase Agreement Account
$19,300,000 5.90% 07/01/98 $19,300,000
Joint Repurchase Agreement Account II(d)
50,000,000 5.83 07/01/98 50,000,000
- ------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $ 69,300,000
- ------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $940,390,158(b)
- ------------------------------------------------------------------------------------------------
</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) The amount stated also represents aggregate cost for federal income tax
purposes.
(c) When-issued security.
(d) A portion of this security is segregated for a when-issued security.
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 type 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.
2
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
ILA MONEY MARKET PORTFOLIO
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER AND CORPORATE OBLIGATIONS--12.7%
BANK HOLDING COMPANIES
Bankers Trust Securities Corp.
$10,000,000 5.43% 09/02/98 $ 9,904,975
RECEIVABLE/ASSET FINANCINGS
Asset Portfolio Funding
24,424,000 5.52 07/22/98 24,345,355
Receivables Capital Corp.
30,000,000 5.52 07/23/98 29,898,800
WCP Funding Inc.
25,000,000 5.52 08/24/98 24,793,000
25,000,000 5.52 09/09/98 24,731,667
SECURITY AND COMMODITY BROKERS, DEALERS AND SERVICES
Bear Stearns Companies, Inc.
10,000,000 5.53 07/29/98 9,957,028
20,000,000 5.52 09/15/98 19,766,933
Salomon Smith Barney Holdings, Inc.
20,000,000 5.47 07/13/98 19,963,533
- --------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER AND CORPORATE OBLIGATIONS $163,361,291
- --------------------------------------------------------------------------------------------------
BANK NOTES--1.4%
Bank of Western Australia Ltd.
$ 5,000,000 5.65% 02/19/99 $ 4,997,996
Huntington National Bank
3,000,000 5.82 11/13/98 2,999,575
Morgan Guaranty Trust Co.
10,000,000 5.93 08/31/98 9,999,361
- --------------------------------------------------------------------------------------------------
TOTAL BANK NOTES $ 17,996,932
- --------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - YANKEEDOLLAR--14.0%
Banque National de Paris
$15,000,000 5.58% 08/25/98 $ 15,000,223
CIBC, New York
15,000,000 5.66 02/26/99 14,995,274
Commerzbank
5,000,000 5.65 02/26/99 4,998,424
Credit Agricole Indosuez, New York
15,000,000 5.95 08/13/98 14,999,156
10,000,000 5.74 04/26/99 9,995,295
Creditanstalt, New York
10,000,000 5.85 05/03/99 9,995,991
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT - YANKEEDOLLAR (CONTINUED)
Den Danske Bank Corp.
$10,000,000 5.75% 04/26/99 $ 9,996,079
National Bank of Canada
10,000,000 5.78 05/19/99 9,994,766
15,000,000 5.76 06/10/99 14,991,879
Societe Generale, New York
10,000,000 5.91 10/20/98 9,997,239
15,000,000 5.66 02/26/99 14,996,213
5,000,000 5.71 03/29/99 4,998,578
10,000,000 5.63 04/06/99 9,987,078
Swiss Bank Corp.
35,000,000 5.71 07/02/98 35,000,054
- --------------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT - YANKEEDOLLAR $179,946,249
- --------------------------------------------------------------------------------------------------
SOVEREIGN CREDIT--19.2%
Asset Securitization Coop Corp.
$25,000,000 5.51% 09/03/98 $ 24,755,111
Banca Crt Financial Corp.
18,000,000 5.54 07/07/98 17,983,380
25,000,000 5.45 09/01/98 24,765,347
Diageo Capital PLC
20,000,000 5.47 08/26/98 19,829,822
Eksportfinans
14,650,000 5.47 07/02/98 14,647,774
Four Winds Funding Corp.
15,000,000 5.54 07/14/98 14,969,992
IMI Funding Corp., U.S.A.
11,941,000 5.52 09/03/98 11,823,819
Province of Quebec
10,000,000 5.53 07/15/98 9,978,494
Rose One
38,374,000 5.55 09/01/98 38,007,209
Sheffield Receivables Corp.
24,945,000 5.52 08/26/98 24,730,806
Unifunding, Inc.
20,000,000 5.45 09/09/98 19,788,056
Windmill Funding
25,000,000 5.52 09/15/98 24,708,667
- --------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN CREDIT $245,988,477
- --------------------------------------------------------------------------------------------------
</TABLE>
---------------------------------------
- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
3
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
ILA MONEY MARKET PORTFOLIO (continued)
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
VARIABLE RATE DEMAND NOTES(A)--36.7%
Bank of Austria AG
$30,000,000 5.53% 06/04/99 $29,980,831
Barclays Bank PLC
30,000,000 5.52 06/02/99 29,978,739
Bayerische Landesbank
15,000,000 5.53 02/25/99 14,993,364
10,000,000 5.52 06/29/99 9,992,668
Commonwealth Life Insurance Co.
25,000,000 5.81 05/06/99 25,000,000
CP Trust Certificates Series 1996-1
20,000,000 5.84 03/30/99 20,000,000
Dauphin Deposit Bank & Trust
10,000,000 5.63 08/04/98 9,999,638
Den Danske Bank, New York
5,000,000 5.60 03/25/99 4,999,650
15,000,000(c) 5.56 07/02/99 14,992,614
FCC National Bank
10,000,000 5.32 07/28/98 9,999,425
First Tennessee Bank, N.A.
10,000,000 5.57 04/23/99 9,996,026
General Electric Capital Corp.
20,000,000 5.61 11/09/98 20,000,000
Istituto Bancario, New York
15,000,000 5.54 04/14/99 14,994,232
30,000,000 5.57 05/24/99 29,981,545
5,000,000 5.56 06/08/99 4,996,782
Merrill Lynch & Co., Inc.
11,000,000 5.89 01/22/99 11,015,542
15,000,000 5.61 02/09/99 15,000,000
10,000,000 5.61 03/16/99 10,000,000
5,000,000 5.84 05/10/99 5,008,700
Morgan Stanley Dean Witter, Inc.
20,000,000 5.62 11/20/98 20,000,000
15,000,000 5.61 01/15/99 14,999,215
New York Life Insurance Co.
10,000,000 5.67 12/03/98 10,000,000
Old Kentucky Bank & Trust Co.
10,000,000 5.60 04/30/99 9,995,939
PNC Bank, N.A.
15,000,000 5.55 08/28/98 14,998,599
SMM Trust Series 1997-X
10,000,000 5.66 12/14/98 10,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
VARIABLE RATE DEMAND NOTES (CONTINUED)
Societe Generale, New York
$ 5,000,000 5.58% 05/07/99 $ 4,998,104
5,000,000 5.56 05/26/99 4,996,629
Southtrust Bank, N.A.
20,000,000 5.57 04/21/99 19,992,106
Svenska Handelsbanken, New York
45,000,000 5.54 06/01/99 44,975,645
U.S. Bank, N.A.
15,000,000 5.99 09/03/98 15,009,364
10,000,000 5.99 09/10/98 10,006,874
- ----------------------------------------------------------------------------------------------
TOTAL VARIABLE RATE DEMAND NOTES $ 470,902,231
- ----------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT--1.6%
Chase Manhattan Bank U.S.A.
$20,000,000 5.62% 07/07/98 $ 20,000,000
- ----------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT $ 20,000,000
- ----------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--15.5%
Joint Repurchase Agreement Account
$148,400,000 5.90% 07/01/98 $ 148,400,000
Joint Repurchase Agreement Account II(d)
50,000,000 5.83 07/01/98 50,000,000
- ----------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $ 198,400,000
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $1,296,595,180(b)
- ----------------------------------------------------------------------------------------------
</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) The amount stated also represents aggregate cost for federal income tax
purposes.
(c) When-issued security.
(d) A portion of this security is segregated for a when-issued security.
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 type 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
- --------------------------------------------------------------------------------
ILA GOVERNMENT PORTFOLIO
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS--60.6%
Federal Farm Credit Bank
$15,000,000 5.70% 12/01/98 $ 14,993,374
12,000,000 5.65 01/04/99 11,991,134
Federal Home Loan Bank
6,485,000 5.71 10/01/98 6,484,499
3,000,000 5.61 06/18/99 2,998,403
Federal Home Loan Mortgage Corp.
30,000,000 5.43 07/01/98 30,000,000
35,000,000 5.46 01/26/99 34,986,361
15,000,000 5.45(a) 05/04/99 14,990,664
Federal National Mortgage Association
75,000,000 5.45 01/22/99 74,975,004
25,000,000 5.44 02/17/99 24,987,580
9,000,000 5.41 02/23/99 8,989,629
10,000,000 5.53 03/11/99 9,994,732
15,000,000 5.61 05/21/99 14,989,666
Student Loan Marketing Association
8,200,000 5.79 09/16/98 8,200,280
- -------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS $258,581,326
- -------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--39.5%
CIBC Oppenheimer, Dated 06/30/98, Repurchase Price $25,004,097 (FHLMC:
$25,566,450, 7.00%, 06/01/26-05/01/28)
$ 25,000,000 5.90% 07/01/98 $ 25,000,000
JP Morgan Securities, Inc., Dated 04/16/98, Repurchase Price $10,136,714
(GNMA: $10,200,001, 8.50%-9.00%, 06/15/16-07/15/27)
10,000,000 5.53 07/14/98 10,000,000
JP Morgan Securities, Inc., Dated 06/09/98, Repurchase Price $30,422,392
(GNMA: $30,600,000, 8.50%-9.00%, 12/15/16-11/15/27)
30,000,000 5.57 09/08/98 30,000,000
Joint Repurchase Agreement Account
103,700,000 5.90 07/01/98 103,700,000
- -------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $168,700,000
- -------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $427,281,326(b)
- -------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
</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 the
investments in that category as a percentage of total net assets.
---------------------------------------
- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
5
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
ILA TREASURY OBLIGATIONS PORTFOLIO
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS--9.3%
U.S. Treasury Notes
$15,000,000 5.88% 11/02/98 $ 15,007,668
20,000,000 5.88 02/01/99 20,022,001
5,000,000 8.88 02/16/99 5,101,452
11,000,000 6.25 03/31/99 11,057,980
8,000,000 7.00 04/15/99 8,089,302
15,000,000 6.38 04/30/99 15,095,254
5,000,000 6.38 05/15/99 5,032,500
5,000,000 6.25 06/01/99 5,030,835
- ---------------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS $ 84,436,992
- ---------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--90.0%
Bear Stearns Companies, Inc., Dated 06/30/98, Repurchase Price $32,005,244
(U.S. Treasury Notes: $32,670,737, 5.50%-8.88%,
11/15/98-02/29/00)
$ 32,000,000 5.90% 07/01/98 $ 32,000,000
BZW Securities, Dated 06/30/98, Repurchase Price $40,006,500 (U.S. Treasury
Notes: $40,800,574, 6.375%-6.75%, 06/30/99-05/15/00)
40,000,000 5.85 07/01/98 40,000,000
C.S. First Boston Corp., Dated 06/30/98, Repurchase Price $40,006,722 (U.S.
Treasury Stripped Interest Only Securities: $41,415,009, 08/15/98-08/15/06)
40,000,000 6.05 07/01/98 40,000,000
Chase Manhattan Bank U.S.A., Dated 06/30/98, Repurchase Price $40,006,556
(U.S. Treasury Notes: $40,803,021, 6.25%-7.875%, 05/31/01-10/31/01)
40,000,000 5.90 07/01/98 40,000,000
CIBC Oppenheimer, Dated 06/30/98, Repurchase Price $40,006,278 (Total
Collateral Value $40,804,117 consisting of U.S. Treasury Bill: 10/15/98;
U.S. Treasury Notes: 5.75%-6.75%, 08/31/99-10/31/02)
40,000,000 5.65 07/01/98 40,000,000
Dresdner Kleinwort Benson, N.A., Dated 06/30/98, Repurchase Price
$32,005,067 (Total Collateral Value $32,643,625 consisting of U.S. Treasury
Notes: 5.25%-8.25%, 07/15/98-05/15/08)
32,000,000 5.70 07/01/98 32,000,000
Goldman Sachs & Co., Dated 06/30/98, Repurchase Price $40,006,444 (Total
Collateral Value $40,800,691 consisting of U.S. Treasury Stripped Interest
Only Securities: 08/15/98-05/15/02; U.S. Treasury Stripped Principal Only
Security: 05/15/99; U.S. Treasury Stripped Security: 02/15/01)
40,000,000 5.80 07/01/98 40,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
JP Morgan Securities, Inc., Dated 06/30/98, Repurchase Price $40,006,444
(U.S. Treasury Note: $40,800,552, 6.50%, 05/31/01)
$ 40,000,000 5.80% 07/01/98 $ 40,000,000
Lehman Brothers Inc., Dated 06/30/98, Repurchase Price $40,006,500 (U.S.
Treasury Note: $40,786,385, 5.50%, 02/15/98)
40,000,000 5.85 07/01/98 40,000,000
Merrill Lynch Government Securities, Inc., Dated 06/30/98, Repurchase
Price $40,006,389 (U.S. Treasury Stripped Interest Only Securities:
$40,801,528, 02/15/99-08/15/26)
40,000,000 5.75 07/01/98 40,000,000
Nomura Securities International, Inc., Dated 06/30/98, Repurchase Price
$30,022,917 (U.S. Treasury Notes: $30,600,593, 5.625%-6.25%, 11/30/98-
04/30/01)
30,000,000 5.50 07/02/98 30,000,000
Joint Repurchase Agreement Account
400,600,000 5.90 07/01/98 400,600,000
- -------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $814,600,000
- -------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $899,036,992(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
investments in that category as a percentage of total net assets.
---------------------------------------
- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
6
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
ILA TREASURY INSTRUMENTS PORTFOLIO
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS--98.6%
U.S. Treasury Bills
$ 11,400,000 4.52% 07/09/98 $ 11,388,549
6,300,000 4.80 07/09/98 6,293,280
3,200,000 4.85 07/30/98 3,187,498
18,300,000 4.99 08/06/98 18,208,683
5,400,000 5.01 08/06/98 5,372,946
55,200,000 4.88 08/13/98 54,878,742
6,900,000 4.90 08/20/98 6,853,042
26,800,000 5.09 08/20/98 26,610,539
9,600,000 4.93 09/03/98 9,515,861
24,300,000 5.01 09/17/98 24,036,223
45,000,000 5.02 09/17/98 44,511,038
80,000,000 5.03 09/17/98 79,128,133
U.S. Treasury Notes
172,000,000 8.25 07/15/98 172,190,412
50,000,000 5.25 07/31/98 50,009,766
38,600,000 6.25 07/31/98 38,631,914
45,200,000 5.88 08/17/98 45,227,539
100,000,000 9.25 08/17/98 100,476,425
35,000,000 6.00 09/30/98 35,049,954
- -------------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS $731,570,544
- -------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $731,570,544(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.
7
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
ILA FEDERAL PORTFOLIO
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS--102.8%
Federal Farm Credit Bank
$ 45,000,000 5.46-5.55% 07/01/98 $ 45,000,000
8,000,000 5.39 07/06/98 7,994,011
25,000,000 5.40-5.50 07/07/98 24,977,333
49,500,000 5.39-5.49 07/08/98 49,448,107
7,700,000 5.42 07/23/98 7,674,496
25,000,000 5.43 07/28/98 24,998,340
210,000,000(d) 5.42(a) 08/03/98 210,000,000
29,300,000 5.39 08/03/98 29,155,234
10,000,000 5.40 08/11/98 9,938,557
15,000,000 5.32 08/13/98 14,904,683
60,000,000 5.32-5.33 08/14/98 59,609,745
20,000,000 5.75 09/11/98 19,996,449
30,000,000 5.70 12/01/98 29,986,747
75,000,000 5.61 01/04/99 75,000,000
40,000,000 5.38 03/02/99 39,954,676
125,000,000 5.46 04/15/99 124,951,494
25,000,000 5.45 05/03/99 24,989,682
20,000,000 5.60 06/01/99 19,989,229
65,000,000(c) 5.56 07/01/99 64,961,871
Federal Home Loan Bank
24,200,000 5.40-5.55 07/01/98 24,200,000
30,000,000 5.39 07/06/98 29,977,542
50,000,000 5.43 07/07/98 49,999,200
107,195,000 5.39-5.40 07/08/98 107,082,580
20,000,000 5.39 07/10/98 19,973,050
54,500,000 5.38-5.39 07/15/98 54,385,804
10,000,000 5.41 07/15/98 9,978,961
50,000,000 5.39 07/22/98 49,842,792
200,000,000 5.43 07/23/98 199,988,073
70,000,000 5.38 08/07/98 69,612,939
29,200,000 5.40 08/19/98 28,985,380
38,300,000 5.38 08/21/98 38,008,090
72,205,000 5.39 09/09/98 71,448,251
50,000,000 5.43 09/17/98 49,991,594
125,000,000 5.44 10/02/98 124,975,416
30,000,000 5.70 10/23/98 29,991,473
</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)
$ 32,400,000 5.39-5.41% 07/17/98 $ 32,322,184
100,000,000 5.46(a) 02/11/99 99,957,786
40,000,000 5.60 03/10/99 39,998,895
20,000,000 5.61 06/18/99 19,989,353
Student Loan Marketing Association
20,000,000 5.79 09/16/98 20,003,692
105,000,000 5.56 04/01/99 104,969,259
50,000,000 5.62 04/16/99 49,980,601
20,000,000 5.63 06/02/99 19,991,090
10,135,000 5.63 06/30/99 10,130,522
Tennessee Valley Authority
50,000,000 5.39-5.49 07/08/98 49,947,576
27,300,000 5.39 07/24/98 27,205,989
25,000,000 5.36 07/27/98 24,903,222
25,000,000 5.38 08/06/98 24,865,500
50,000,000 5.38 08/13/98 49,678,694
60,000,000 5.39 09/21/98 59,263,368
- -----------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS $ 2,475,179,530
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS $2,475,179,530(b)
- -----------------------------------------------------------------------------------------
</TABLE>
(a) Variable rate security-base index is either U.S. Treasury Bill, one or
three month LIBOR, Federal Funds, Prime lending rate, or 30 day discount
note rate.
(b) The amount stated also represents aggregate cost for federal income tax
purposes.
(c) When-issued security.
(d) A portion of this security is segregated for a when-issued security.
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.
8
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
ILA TAX-EXEMPT DIVERSIFIED PORTFOLIO
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ALABAMA--4.8%
Columbia IDB PCRB Series 1996 A for Alabama Power Co. (VMIG1)
$15,400,000 3.90% 07/01/98 $ 15,400,000
Columbia IDB PCRB Series 1995 B for Alabama Power Co. (A-1/VMIG1)
21,700,000 3.90 07/01/98 21,700,000
Homewood RB for Stamford University (Bank of Nova Scotia LOC)
(A-1+/VMIG1)
25,200,000 3.90 07/01/98 25,200,000
Mobile County IDA PCRB Series 1984 for M&T Chemicals (Bankers Trust
Company LOC) (A1)
3,000,000 3.63 07/07/98 3,000,000
Mobile IDA PCRB Series 1993 A for Alabama Power (A1/VMIG1)
7,000,000 3.60 07/07/98 7,000,000
Montgomery Special Care RB Series 1994 A (Amsouth Bank LOC) (VMIG1)
6,720,000 3.50 07/07/98 6,720,000
- -----------------------------------------------------------------------------------------------
$ 79,020,000
- -----------------------------------------------------------------------------------------------
ALASKA--0.9%
City of Valdez Term RB Series 1993 B for Exxon Pipeline Co. (A-1+)
$ 7,000,000 3.70% 07/01/98 $ 7,000,000
Valdez Marine Terminal RB Series 1993 C for Exxon Corp. (A-1+)
7,500,000 3.70 07/01/98 7,500,000
- -----------------------------------------------------------------------------------------------
$ 14,500,000
- -----------------------------------------------------------------------------------------------
ARIZONA--0.1%
City of Tempe Variable Rate Excise Tax RB Series 1998 (A-1+/VMIG1)
$ 800,000 3.85% 07/01/98 $ 800,000
- -----------------------------------------------------------------------------------------------
ARKANSAS--1.1%
Crossett PCRB Series 1991 for Georgia Pacific Corp. (Suntrust Bank LOC)
(AA3)
$ 9,500,000 3.60% 07/07/98 $ 9,500,000
Union County PCRB Series 1988 for Great Lakes Chemical(c) (A-1+)
9,000,000 3.74 07/07/98 9,000,000
- -----------------------------------------------------------------------------------------------
$ 18,500,000
- -----------------------------------------------------------------------------------------------
CALIFORNIA--0.9%
MSR Public Power Agency RB Series 1997 D for San Juan Project (MBIA)(A-
1+/VMIG1)
$10,700,000 3.15% 07/07/98 $ 10,700,000
San Diego County Variable Rate RB Series 1985 C for Country Hills (FNMA)
(A-1+)
4,700,000 3.00 07/07/98 4,700,000
- -----------------------------------------------------------------------------------------------
$ 15,400,000
- -----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FLORIDA--1.3%
Dade County Water & Sewer System RB Series 1994 (FGIC)
(A-1+/VMIG1)
$10,000,000 3.40% 07/07/98 $ 10,000,000
Putnam County Development Authority RB Series 1984 H for Seminole Electric
(Cooperative Finance Corp.) (A-1/VMIG1)
10,785,000 3.65 07/07/98 10,785,000
- -----------------------------------------------------------------------------------------------
$ 20,785,000
- -----------------------------------------------------------------------------------------------
GEORGIA--12.4%
Albany Dougherty First PCRB for Philip Morris Co. (A-1/P-1)
$17,000,000 3.60% 07/07/98 $ 17,000,000
Albany Dougherty PCRB First Series 1991 for Georgia Power Co. (A-1+)
2,120,000 3.60 07/07/98 2,120,000
Atlanta Water & Sewer RB Eagle Tax-exempt Trust Class A Series 1997 (FGIC)
(A1+C)
10,500,000 3.68 07/07/98 10,500,000
Bartow County PCRB Series 1997 for Georgia Power Co. (VMIG1)
20,300,000 3.90 07/01/98 20,300,000
Burke County PCRB First Series 1992 for Georgia Power Co. (A-1+)
12,425,000 3.60 07/07/98 12,425,000
Burke County PCRB Ninth Series 1994 for Georgia Power Co.
(A-1/VMIG1)
11,200,000 3.90 07/01/98 11,200,000
Burke County PCRB Series 1993 A for Oglethorpe Power Corp. (FGIC)
(A-1+)
4,100,000 3.40 07/07/98 4,100,000
Cobb County Development Authority RB Series 1998 (Suntrust Bank LOC) (AA3)
5,525,000 3.60 07/07/98 5,525,000
Cobb County Power Operations, Inc. First Series 1991 for Georgia Power Co.
(VMIG1)
8,330,000 3.60 07/07/98 8,330,000
Columbus Hospital Authority RB for St. Francis Hospital (Suntrust Bank
LOC) (VMIG1)
6,950,000 3.60 07/07/98 6,950,000
Coweta County PCRB First Series 1996 for Georgia Power Co. (A-1/VMIG1)
1,600,000 3.90 07/01/98 1,600,000
Dekalb County Hospital Authority RB Series 1993 B (Suntrust Bank LOC)
(AA3/VMIG1)
5,200,000 3.60 07/07/98 5,200,000
Dekalb County IDA VRDN Series 1994 for Siemens Energy and Automation Inc.
(P-1)
3,750,000 3.55 07/07/98 3,750,000
</TABLE>
---------------------------------------
- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
9
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
ILA TAX-EXEMPT DIVERSIFIED PORTFOLIO (continued)
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
GEORGIA (CONTINUED)
Fulco Hospital Authority Series 1992 Revenue Anticipation Certificates
(Suntrust Bank LOC) (A-1+)
$ 6,500,000 3.60% 07/07/98 $ 6,500,000
Georgia Municipal Gas Authority RB for Gas Portfolio II Project Series A
(ABN Amro Bank/Bayerische Landes Bank Girozentrale/ Morgan Guaranty
Trust/Credit Suisse/Wachovia Bank LOC) (A-1+)
24,900,000 3.40 07/07/98 24,900,000
Heard County IDA PCRB Series 1996 for Georgia Power Co. (A- 1/VMIG1)
1,800,000 3.90 07/01/98 1,800,000
Henry County IDA PCRB Series 1993 for Georgia Pacific Inc. (Suntrust Bank
LOC) (AA3)
4,000,000 3.60 07/07/98 4,000,000
Meag Project One Subordinated Bonds Series 1994 D (ABN Amro Bank LOC) (A-
1+/VMIG1)
6,000,000 3.50 07/07/98 6,000,000
Meag Project One Subordinated Bond Series 1994 E (ABN Amro Bank LOC) (A-
1+/VMIG1)
21,300,000 3.40 07/07/98 21,300,000
Monroe County IDA PCRB Series 1997 A (A-1/VMIG1)
4,700,000 3.90 07/01/98 4,700,000
Putnam County Development Authority PCRB First Series 1998 for Georgia
Power Co. (A-1/VMIG1)
2,300,000 4.10 07/01/98 2,300,000
Putnam County PCRB First Series 1996 for Georgia Power Co. Plant Branch
(VMIG1)
7,600,000 4.10 07/01/98 7,600,000
Savannah Economic Development Authority PCRB VRDN for Savannah Electric &
Power (A-1/VMIG1)
4,085,000 3.60 07/07/98 4,085,000
State of Georgia GO Puttable Floating Option Series Pa-246 (A1+C)
10,205,000 3.68 07/07/98 10,205,000
- --------------------------------------------------------------------------------------------------
$202,390,000
- --------------------------------------------------------------------------------------------------
IDAHO--1.2%
State of Idaho TRANS(b) (SP1+/MIG1)
$20,000,000 4.50% 07/15/99 $ 20,173,000
- --------------------------------------------------------------------------------------------------
ILLINOIS--9.1%
Belleville IDA for Weyerhaeuser Company Series 1993 (A-1)
$ 1,800,000 3.70% 07/07/98 $ 1,800,000
Chicago GO Tender Notes Series 1997 (Morgan Guaranty Trust LOC) (SP1+/MIG1)
31,500,000 3.55 10/29/98 31,500,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ILLINOIS (CONTINUED)
Cook County GO Variable Rate Series 1996 (A-1+/VMIG1)
$50,700,000 3.50% 07/07/98 $ 50,700,000
Illinois Health Facilities Authority VRDN for Northwest Community Hospital
Series 1997 (A-1+/VMIG1)
2,600,000 3.60 07/07/98 2,600,000
Illinois Health Facilities Authority VRDN for Resurrection Healthcare
(VMIG1)
9,500,000 3.80 07/01/98 9,500,000
Illinois Health Facilities Authority VRDN Series 1985 C Revolving Fund
Pooled Finance Program (First National Bank of Chicago LOC)
(A-1/VMIG1)
16,575,000 3.50 07/07/98 16,575,000
Illinois Health Facilities Authority VRDN Series 1985 D Revolving Fund
Pooled Finance Program (First National Bank of Chicago LOC)
(A-1/VMIG1)
8,300,000 3.50 07/07/98 8,300,000
Illinois Health Facilities Authority VRDN Series 1995 (A-1+/VMIG1)
1,700,000 3.60 07/07/98 1,700,000
Illinois Health Facilities Authority VRDN Series 1998 for Evanston
Northwestern Health Care Corp. (A-1+/VMIG1)
7,500,000 3.70 06/01/99 7,500,000
Illinois Health Facility Authority RB Series 1990 A for SSM Health Care
(Rabobank Nederland LOC) (VMIG1)
3,000,000 3.85 08/17/98 3,000,000
Sauget PCRB VRDN Series 1992 (Monsanto) (P-1)
3,300,000 3.65 07/07/98 3,300,000
Societe Generale Municipal Securities Trust Receipts RB Series 1996 A for
Chicago Midway Airport (MBIA)(A1+C)
12,000,000 3.68 07/07/98 12,000,000
- --------------------------------------------------------------------------------------------------
$148,475,000
- --------------------------------------------------------------------------------------------------
INDIANA--3.9%
Fort Wayne Hospital Authority VRDN Series 1985 C and D (Bank of America
LOC) (VMIG1)
$ 1,180,000 3.40% 07/07/98 $ 1,180,000
Fort Wayne Parkview Memorial Hospital VRDN Series 1985 C (Bank of America
LOC) (VMIG1)
7,655,000 3.40 07/07/98 7,655,000
Fort Wayne Parkview Memorial Hospital VRDN Series 1989 B (Bank of America
LOC) (VMIG1)
15,700,000 3.40 07/07/98 15,700,000
Gary Industrial CP Series 1986 for U.S. Steel Project (Bank of New York
LOC) (A-1+/P-1)
10,000,000 3.70 10/09/98 10,000,000
</TABLE>
---------------------------------------
- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INDIANA (CONTINUED)
Indiana Health Facility Authority Variable Rate RB Series 1997 E for
Daughters of Charity National Health System (A-1+/VMIG1)
$15,000,000 3.40% 07/07/98 $15,000,000
Indiana Hospital Equipment Financing Authority VRDN Series 1985 A
(MBIA)(A-1/VMIG1)
5,000,000 3.60 07/07/98 5,000,000
Schererville Economic Development VRDN Series 1983 for Avery International
Corp. Project (Bankers Trust LOC) (A1)
4,000,000 3.63 07/07/98 4,000,000
Warrick County PCRB Series 1992 for Aluminum Company of America (A-1)
5,000,000 3.65 07/07/98 5,000,000
- -------------------------------------------------------------------------------------------------
$63,535,000
- -------------------------------------------------------------------------------------------------
IOWA--2.4%
City of Chillicothe PCRB Series 1993 A for Mid American Energy Company (A-
1/VMIG1)
$ 900,000 3.55% 07/07/98 $ 900,000
City of Salix PCRB VRDN for Midwest Power Systems (A-1/VMIG1)
21,795,000 3.55 07/07/98 21,795,000
Louisa County PCRB Series 1986 for Iowa-Illinois Gas & Electric
Co./Midamerican Energy Co. (VMIG1)
15,400,000 3.60 07/07/98 15,400,000
Muscatine County VRDN Series 1992 (Monsanto Corp.) (P-1)
1,000,000 3.65 07/07/98 1,000,000
- -------------------------------------------------------------------------------------------------
$39,095,000
- -------------------------------------------------------------------------------------------------
KENTUCKY--2.6%
Calvert VRDN for Air Products and Chemicals Inc. Project (A-1)
$ 1,000,000 3.65% 07/07/98 $ 1,000,000
Kentucky Economic Development Finance Authority Adjustable Rate Hospital
Facilities RB Series 1997 D for The Health Alliance of Greater Cincinnati
(A-1+/VMIG)
5,000,000 3.70 07/07/98 5,000,000
Kentucky Turnpike Authority Refunding Bonds 1987 A Series 1997 Fr/ri-17
(Financial Security Assurance Inc.) (A-1+/VMIGI)
5,000,000 3.70 07/07/98 5,000,000
Mason County Floating/Fixed Rate PCRB Series 1984 B for East Kentucky
Power Facility (National Rural Utilities Cooperative Finance Corp.) (A-
1+)
20,000,000 3.65 07/07/98 20,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
KENTUCKY (CONTINUED)
Trimble County PCRB Series 1996 A for Louisville Gas & Electric Co.
(A-1+)
$11,000,000 3.65% 09/09/98 $ 11,000,000
- -----------------------------------------------------------------------------------------------
$ 42,000,000
- -----------------------------------------------------------------------------------------------
LOUISIANA--2.1%
Ascension Parish PCRB Series 1996 for Vulcan Materials Co.
(A-1+/VMIG1)
$ 8,200,000 3.70% 07/07/98 $ 8,200,000
Parish of Iberville VRDN for Air Products and Chemicals Inc. Project (A-1)
6,200,000 3.65 07/07/98 6,200,000
South Louisiana Port Commission RB Series 1996 for Occidental Petroleum
Corp. (Wachovia Bank LOC) (P-1)
11,800,000 3.50 07/01/98 11,800,000
St. James Parish PCRB Series 1996 for Occidental Petroleum Corp. (Wachovia
Bank LOC) (P-1)
8,000,000 3.50 07/07/98 8,000,000
- -----------------------------------------------------------------------------------------------
$ 34,200,000
- -----------------------------------------------------------------------------------------------
MASSACHUSETTS--2.0%
Massachusetts Health & Education Authority RB Series I for Harvard
University (AAA)
$20,600,000 3.40% 07/07/98 $ 20,600,000
Massachusetts Health & Education Authority Eagle Trust for Harvard
University Series 972104 (A-1+C)
12,500,000 3.68 07/07/98 12,500,000
- -----------------------------------------------------------------------------------------------
$ 33,100,000
- -----------------------------------------------------------------------------------------------
MICHIGAN--2.7%
State of Michigan GO Notes (SP1+/MIG1)
$18,000,000 4.50% 09/30/98 $ 18,032,645
Michigan State Building Authority CP Series 2 (Canadian Imperial Bank of
Commerce LOC) (A-1+/P-1)
25,000,000 3.70 10/01/98 25,000,000
Michigan Strategic Fund PCRB Series 1995 CC for Detroit Edison (Barclays
Bank LOC) (A-1+/P-1)
100,000 3.80 07/01/98 100,000
Michigan Strategic Funding Limited Obligation RB Series 1993 A for
Consumers Power Co. (Canadian Imperial Bank of Commerce LOC) (A-1+)
1,000,000 3.80 07/01/98 1,000,000
- -----------------------------------------------------------------------------------------------
$ 44,132,645
- -----------------------------------------------------------------------------------------------
</TABLE>
---------------------------------------
- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
11
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
ILA TAX-EXEMPT DIVERSIFIED PORTFOLIO (continued)
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MINNESOTA--1.2%
Becker PCRB Series 1992 A for Northern States Power Co. (A-1+/MIG1)
$ 8,000,000 3.60% 09/24/98 $ 8,000,000
Minnesota Higher Education Facility Authority VRDN RB Series 3-12 for
Carleton College (VMIG1)
4,175,000 3.40 07/07/98 4,175,000
White Bear Lake IDA RB Series 1993 for Weyerhaeuser Co.(c) (A-1)
6,800,000 3.70 07/07/98 6,800,000
- --------------------------------------------------------------------------------------------------
$ 18,975,000
- --------------------------------------------------------------------------------------------------
MISSISSIPPI--0.6%
Canton IDRB Series 1995 for Levi Strauss & Co. (Bank of America LOC) (A1+)
$10,000,000 3.55% 07/07/98 $ 10,000,000
- --------------------------------------------------------------------------------------------------
MISSOURI--1.2%
Missouri Health & Education Facility Authority RB Series 1984
(A-1+/MIG1)
$ 4,050,000 3.60% 07/07/98 $ 4,050,000
Missouri Health & Education Facility Authority VRDN Series 1995 B (MBIA)
(A-1+)
9,812,000 3.85 11/01/98 9,812,000
Monsanto Corporation State Environmental Improvement and Energy Resources
Authority (Monsanto) (P-1)
5,000,000 3.65 07/07/98 5,000,000
- --------------------------------------------------------------------------------------------------
$ 18,862,000
- --------------------------------------------------------------------------------------------------
NEVADA--3.4%
Clark County VRDN for Nevada Airport System (MBIA) (A-1+/VMIG1)
$56,000,000 3.40% 07/07/98 $ 56,000,000
- --------------------------------------------------------------------------------------------------
NEW MEXICO--0.6%
State of Mexico TRANS(b) (SP1+/MIG1)
$10,200,000 4.25% 06/30/99 $ 10,263,248
- --------------------------------------------------------------------------------------------------
NEW YORK--6.1%
Long Island Power Authority Electric System RB Series 1-6 (Westdeutsche
Landesbank Girozentrale/Bayerische Landes Bank LOC) (A-1+/VMIG1)
$24,800,000 3.70% 10/29/98 $ 24,800,000
22,000,000 3.70 11/30/98 22,000,000
Long Island Power Authority Electric System Subordinated RB
Series 1-6 (Bayerische Landes Bank Girozentrale/Westdeutsche Landesbank
Girozentrale LOC) (A-1+/VMIG1)
18,200,000 3.50 07/07/98 18,200,000
New York City Puttable Tax-exempt Receipts GO Bonds Fiscal 1995 Series D
(MBIA) (VMIG1)
10,700,000 3.73 07/07/98 10,700,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK (CONTINUED)
New York State Energy Research & Development Authority PCRB Series D-2 for
New York State Electric & Gas Corp. (First National Bank of Chicago LOC)
(VMIG1)
$ 7,000,000 3.75% 07/01/98 $ 7,000,000
New York State Energy Research & Development Authority PCRB Series 1994 D
for New York State Electric & Gas Corp. (Union Bank of Switzerland LOC)
(A-1+/VMIG1)
5,000,000 3.80 07/01/98 5,000,000
New York State Floating Rate Trust Receipts Series 1997 (A-1/P-1)
10,125,000 3.80 07/07/98 10,125,000
New York State Housing Finance Agency RB Series 1987 A for Normandie Court
Housing (Fleet Bank LOC) (VMIG1)
1,600,000 3.20 07/07/98 1,600,000
- --------------------------------------------------------------------------------------------------
$ 99,425,000
- --------------------------------------------------------------------------------------------------
NORTH CAROLINA--3.4%
Greensboro COPS Series 1998 (A-1+/VMIG1)
$ 5,000,000 3.60% 07/07/98 $ 5,000,000
North Carolina Medical Care Community RB Series 1993 for Moses H. Cone
Memorial Hospital Project (A-1+)
14,900,000 3.40 07/07/98 14,900,000
Rockingham County IDA PCRB for Philip Morris Co. (A-1/P-1)
3,960,000 3.80 07/07/98 3,960,000
Wake County PCRB Series 1990 B for Carolina Power & Light (Bank of New York
LOC) (A-2/P-1)
25,000,000 3.75 09/01/98 25,000,000
7,200,000 3.65 10/14/98 7,200,000
- --------------------------------------------------------------------------------------------------
$ 56,060,000
- --------------------------------------------------------------------------------------------------
OHIO--1.9%
Hamilton County Adjustable Rate Hospital Facilities RB Series 1997 B for
The Health Alliance of Greater Cincinnati(c) (MBIA) (A-1+/VMIG1)
$30,775,000 3.55% 07/07/98 $ 30,775,000
- --------------------------------------------------------------------------------------------------
OKLAHOMA--0.6%
Muskogee PCRB Series 1997 A for Oklahoma Gas & Electric Co.
(A-1/VMIG1)
$10,000,000 3.60% 07/07/98 $ 10,000,000
- --------------------------------------------------------------------------------------------------
OREGON--1.6%
Lane County PCRB VRDN Series 1994 for Weyerhaeuser Company (A-1)
$ 6,500,000 3.70% 07/07/98 $ 6,500,000
</TABLE>
---------------------------------------
- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
12
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OREGON (CONTINUED)
State of Oregon Veteran's Welfare VRDN Series 1973 H (Morgan Guaranty Trust
LOC) (A-1+/VMIG1)
$19,300,000 3.50% 07/07/98 $ 19,300,000
- --------------------------------------------------------------------------------------------------
$ 25,800,000
- --------------------------------------------------------------------------------------------------
PENNSYLVANIA--2.0%
City of Philadelphia TRANS(b) (SP1+/MIG1)
$17,625,000 4.27% 08/14/98 $ 17,729,164
Pennsylvania GO Eagle Trust Series 1994 (AMBAC) (A-1C)
14,400,000 3.68 07/07/98 14,400,000
- --------------------------------------------------------------------------------------------------
$ 32,129,164
- --------------------------------------------------------------------------------------------------
SOUTH CAROLINA--0.6%
York County Floating/Fixed Rate VRDN PCRB Pooled Series 1984 for North
Carolina Electric Membership Corp. (CFC) (A-1+/VMIG1)
$10,025,000 3.65% 07/07/98 $ 10,025,000
- --------------------------------------------------------------------------------------------------
SOUTH DAKOTA--0.6%
Puttable Floating Option Receipts Series Pt-73 (A1+C)
$10,180,000 3.68% 07/07/98 $ 10,180,000
- --------------------------------------------------------------------------------------------------
TENNESSEE--0.2%
Bradley County VRDN RB Series 1993 C for Olin Corp. (Wachovia Bank of North
Carolina LOC) (A-1+)
$ 3,100,000 4.15% 07/01/98 $ 3,100,000
- --------------------------------------------------------------------------------------------------
TEXAS--21.5%
Belton VRDN Series 1993 (Texas Commerce Bank LOC) (P-1)
$ 3,450,000 3.55% 07/01/98 $ 3,450,000
Brazos Harbor IDA VRDN Series 1996 for Monsanto Co. (P-1)
3,500,000 3.65 07/07/98 3,500,000
Brazos River Authority PCRB Series 1994 for Monsanto Co. (A-1/P-1)
5,100,000 3.65 07/07/98 5,100,000
Brazos River Authority VRDN for Monsanto Co. (P-1)
5,300,000 3.65 07/07/98 5,300,000
City of Houston GO CP Series A (P-1/A-1+)
25,000,000 3.70 08/14/98 25,000,000
Gulf Coast Waste Disposal Authority PCRB Series 1992 (A-1+/MIGI) (Amoco
Corporation)
7,725,000 3.70 07/01/98 7,725,000
Harris County Health Facility Development Corp. RB Series 1994 (A-1+)
10,150,000 4.00 07/01/98 10,150,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TEXAS (CONTINUED)
Harris County Health Facilities Development Corp. RB Series 1997 A for St.
Luke's Episcopal Hospital (A-1+)
$56,370,000 4.00% 07/01/98 $ 56,370,000
Harris County Health Facility Development Adjustable RB Series 1997 A for
School of The Incarnate Word (A-1+/VMIG1)
6,000,000 3.50 09/10/98 6,000,000
Harris County IDA Series 1984 B for Exxon Corp. (A-1+/P-1)
7,700,000 3.90 07/01/98 7,700,000
Harris County Toll Road Fixed Rate RB Series 1994 F (A-1+/VMIG1)
3,400,000 3.50 07/07/98 3,400,000
Nueces River IDA PCRB UPDATE Series 1984 for San Miguel (CFC)
(A-1+/MIG1)
25,000,000 3.75 07/21/98 25,000,000
25,700,000 3.75 07/22/98 25,700,000
Red River Authority PCRB Series 1991 for Southwestern Public Service (A-
1/VMIG1)
7,700,000 3.75 07/07/98 7,700,000
San Antonio Electric & Gas Systems CP Notes Series A (A-1+/P-1)
11,000,000 3.70 08/13/98 11,000,000
15,000,000 3.65 09/01/98 15,000,000
6,000,000 3.70 09/25/98 6,000,000
San Antonio Electric & Gas System Revenue & Refunding Bonds New Series 1997
Sg 104 & Sg 105 (A1+C)
33,000,000 3.68 07/07/98 33,000,000
Texas Public Finance Authority CP Series 1993 A (A-1+/P-1)
9,000,000 3.50 08/13/98 9,000,000
Texas TRANS Series 1997 A (SP1+/MIG1)
80,600,000 4.75 08/31/98 80,718,953
West Side Calhoun County Development Corp. PCRB Series 1985 for British
Petroleum PLC (A-1+/P-1)
3,000,000 4.00 07/01/98 3,000,000
- --------------------------------------------------------------------------------------------------
$349,813,953
- --------------------------------------------------------------------------------------------------
UTAH--0.7%
State of Utah Highway CP Series 1998 B (A-1+/P-1)
$ 6,000,000 3.70% 09/09/98 $ 6,000,000
Utah State RB Series 1997 A for University of Utah (A-1+/VMIG1)
5,000,000 3.35 07/07/98 5,000,000
- --------------------------------------------------------------------------------------------------
$ 11,000,000
- --------------------------------------------------------------------------------------------------
</TABLE>
---------------------------------------
- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
13
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
ILA TAX-EXEMPT DIVERSIFIED PORTFOLIO (continued)
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
VIRGINIA--5.1%
Chesapeake IDA PCRB Series 1985 for Virginia Electric and Power Co. (A-
1/P-1)
$22,000,000 3.70% 09/10/98 $22,000,000
Chesterfield County IDA PCRB Series 1985 for Virginia Electric & Power Co.
(A-1/P-1)
5,200,000 3.80 08/12/98 5,200,000
8,000,000 3.70 09/10/98 8,000,000
Chesterfield County IDA PCRB Series 1987 A for Virginia Electric & Power
Co. (A-1/P-1)
5,000,000 3.70 09/10/98 5,000,000
Louisa PCRB Series 1984 for Virginia Electric & Power Co. (A-1/P-1)
3,700,000 3.85 07/17/98 3,700,000
4,000,000 3.90 07/20/98 4,000,000
4,000,000 3.80 08/12/98 4,000,000
4,000,000 3.80 08/14/98 4,000,000
Roanoke City IDA VRDN Series B for Carilion Health Systems
(A-1/VMIG1)
5,200,000 4.00 07/01/98 5,200,000
Spotsylvania IDA PCRB Series 1993 for Carlisle Corp. (Suntrust Bank LOC)
(AA3)
6,500,000 3.60 07/07/98 6,500,000
York County IDA PCRB Series 1985 for Virginia Electric & Power Co. (A-1)
9,400,000 3.80 08/03/98 9,400,000
5,600,000 3.70 09/09/98 5,600,000
- -------------------------------------------------------------------------------------------------
$82,600,000
- -------------------------------------------------------------------------------------------------
WASHINGTON--1.4%
King County Sewer RB CP Series A (A-1/P-1)
$ 8,000,000 3.70% 08/14/98 $ 8,000,000
Port of Grays Harbor IDA VRDN Series 1992 for Weyerhaeuser Project (A-1)
1,000,000 3.70 07/07/98 1,000,000
Port of Grays Harbor IDA VRDN Series 1993 for Weyerhaeuser Project(c) (A-
1)
5,850,000 3.70 07/07/98 5,850,000
Union Gap City IDA VRDN Series 1992 for Weyerhaeuser Project (A-1)
1,600,000 3.70 07/07/98 1,600,000
Washington Public Power Supply Project Electric RB Series 1993-1 A (Bank
of America LOC) (A-1+/MIG1)
5,800,000 3.45 07/07/98 5,800,000
- -------------------------------------------------------------------------------------------------
$22,250,000
- -------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WISCONSIN--1.3%
Milwaukee Metropolitan Sewage District GO Eagle Trust Series 1992 A (A-
1C)
$14,000,000 3.68% 07/07/98 $ 14,000,000
Wisconsin Health & Educational Facilities Authority Variable Rate RB
Series 1997 (Toronto Dominion Bank LOC) (A-1+/VMIG1)
7,000,000 3.50 07/07/98 7,000,000
- ---------------------------------------------------------------------------------------------
$ 21,000,000
- ---------------------------------------------------------------------------------------------
WYOMING--0.4%
Lincoln County PCRB Series 1994 (AMBAC) (A-1/VMIG1)
$4,100,000 4.10% 07/01/98 $ 4,100,000
Sweetwater County PCRB Series 1996 C for Idaho Power Co.(A-1/VMIG1)
1,900,000 3.80 07/01/98 1,900,000
- ---------------------------------------------------------------------------------------------
$ 6,000,000
- ---------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $1,660,364,010(a)
- ---------------------------------------------------------------------------------------------
</TABLE>
(a) The amount stated also represents aggregate cost for federal income tax
purposes.
(b) When-issued security
(c) A portion of this security is segregated for a when-issued security.
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 type 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.
14
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
ILA TAX-EXEMPT CALIFORNIA PORTFOLIO
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CALIFORNIA--89.6%
California Health Facility Finance Authority RB Series 1990 A VRDN
(Rabobank Nederland LOC) (AAA/VMIG1)
$ 7,300,000 3.10% 07/07/98 $ 7,300,000
California Municipal Securities Trust Receipts Series 1997 SGA 55 (MBIA)
(AAA/A-1+)
10,000,000 3.55 07/07/98 10,000,000
California PCRB for Pacific Gas & Electric Co. (Banque Nationale de Paris
LOC) (A-1/A+)
5,400,000 3.50 07/01/98 5,400,000
California PCRB Series 1996 E for Pacific Gas & Electric Co. (Morgan
Guaranty Trust LOC) (A-1+)
5,200,000 3.55 08/11/98 5,200,000
California PCRB Series 1997 A for Pacific Gas & Electric Co. (Toronto
Dominion Bank LOC) (A-1)
10,300,000 3.50 07/01/98 10,300,000
California Pollution Control Financing Authority Adjustable TRB Series 1986
D for Southern California Edison (A-1/VMIG1)
10,000,000 3.45 07/01/98 10,000,000
California Pollution Control Financing Authority RB Series 1991 B for Shell
Oil (A-1+/VMIG1)
10,050,000 3.25 07/01/98 10,050,000
California Pollution Control Financing Authority TRB Series 1986 C for
Southern California Edison (A-1/VMIG1)
13,200,000 3.45 07/01/98 13,200,000
California School Cash Reserve Program Series 1997 A (AMBAC)
(SP 1+/MIG1)
14,900,000 4.75 07/02/98 14,900,361
California State GO Puttable Floating Option Receipts Series Pa-238
(A-1+C)(MBIA)
10,000,000 3.55 07/07/98 10,000,000
California State Puttable Floating Option Receipts Series Pt-1001 (FGIC)
(A-1+)
18,870,000 3.58 07/07/98 18,870,000
Chula Vista RB Series 1996 A for San Diego Gas & Electric (A-1/VMIG1)
5,300,000 4.00 07/01/98 5,300,000
City of Berkeley TRANS 1997 (MIG1)
14,500,000 4.25 09/09/98 14,511,238
City of Fresno MF Hsg. Revenue Refunding Bonds Series 1996 A
(Wells Fargo Bank LOC) (VMIG1)
3,315,000 3.20 07/07/98 3,315,000
City of Irwindale VRDN IDRB Series 1984 for Toys-R-Us (Bankers Trust LOC)
(A1)
2,000,000 3.63 07/07/98 2,000,000
City of Long Beach MF Hsg. RB Series 1998 A for Channel Point Apartment
(FNMA) (A-1)
6,250,000 3.20 07/07/98 6,250,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CALIFORNIA (CONTINUED)
City of Newport Beach Floating/Fixed Rate VRDN Health Facilities Memorial
Hospital Facility (A-1/VMIG1)
$ 4,000,000 3.60% 07/01/98 $ 4,000,000
City of San Diego MF Hsg. RB VRDN Series 1985 K for Lacima Apartments
(Citibank LOC) (VMIG1)
12,725,000 3.05 07/07/98 12,725,000
City of San Diego MF Hsg. RB VRDN Series 1985 L for Nobel Court Apartments
(Citibank LOC) (VMIG1)
11,355,000 3.05 07/07/98 11,355,000
City of San Diego MF Hsg. RB VRDN Series 1985 E (Union Bank of Switzerland
LOC) (VMIG1)
16,200,000 3.15 07/07/98 16,200,000
Contra Costa MF Hsg. for Lakeshore Apartments VRDN (A-1+)
5,000,000 3.00 07/07/98 5,000,000
Contra Costa Schools Financing Authority Variable COPS Series F
(KBC Bank LOC) (A-1+)
5,565,000 3.25 07/07/98 5,565,000
Contra Costa Water District CP Series A (A-1+/P-1)
5,200,000 3.65 08/11/98 5,200,000
East Bay Municipal Utility District Water & Wastewater CP (A-1+/P-1)
6,000,000 3.60 08/13/98 6,000,000
1,800,000 3.65 08/13/98 1,800,000
10,300,000 3.55 09/10/98 10,300,000
Fremont City Public Financing Authority Variable COPS Series 1998
(A-1+)
2,000,000 3.25 07/07/98 2,000,000
Fremont MF Hsg. RB Series 1985 D for Creekside Village Apartments (KBC Bank
NV LOC) (VMIG1)
14,400,000 3.10 07/07/98 14,400,000
Huntington Beach City MF Hsg. VRDN Series 1985 A(c) (Bank of America LOC)
(VMIG1)
7,400,000 4.00 07/31/98 7,400,000
Kings County Housing Authority MF Hsg. Refunding RB Series 1996 A (Wells
Fargo Bank LOC) (VMIG1)
6,555,000 3.20 07/07/98 6,555,000
Los Angeles City TRANS Series 1997-98 A(b) (SP 1+/MIG1)
10,000,000 4.50 06/30/99 10,041,400
Los Angeles County Housing Authority Variable MF Hsg. RB Series 1998 B for
Malibu Meadows II Project (FNMA) (A-1+)
17,249,000 3.20 07/07/98 17,249,000
Los Angeles County Metro TRANS Authority VRDN (MBIA) (A-1+/VMIG1)
14,095,000 3.00 07/07/98 14,095,000
</TABLE>
- --------------------------------------- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
15
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
ILA TAX-EXEMPT CALIFORNIA PORTFOLIO (continued)
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CALIFORNIA (CONTINUED)
Los Angeles County Metro Transportation Authority CP Series A (Bayerische
Vereinbank/Canadian Imperial Bank of Commerce/ National Westminster Bank
LOC) (A-1+/P-1)
$ 3,000,000 3.60% 09/01/98 $ 3,000,000
10,000,000 3.70 09/09/98 10,000,000
Los Angeles County TRANS(b) (SP-1+/MIG 1)
10,000,000 4.50 06/30/99 10,086,600
Los Angeles Unified School District Variable COPS Series 1997 A for Belmont
Learning Complex (Commerzbank AG LOC) (VMIG1)
27,800,000 3.20 07/07/98 27,800,000
Los Angeles Unified School District TRANS Series 1997-98
(SP 1+/MIG1)
5,000,000 4.50 10/01/98 5,007,744
Los Angeles Wastewater System CP (Morgan Guaranty Trust/Union Bank of
Switzerland LOC) (A-1/P-1)
4,500,000 3.60 08/14/98 4,500,000
7,000,000 3.65 09/09/98 7,000,000
MSR Public Power Agency RB Series 1997 D for San Juan Project (MBIA) (A-
1+/VMIG1)
18,300,000 3.15 07/07/98 18,300,000
5,000,000 3.10 07/07/98 5,000,000
Newport Beach RB VRDN Series 1996 A (A-1+)
7,500,000 3.60 07/01/98 7,500,000
Newport Beach RB VRDN Series 1996 B for Hoag Memorial Hospital (A-1+)
2,400,000 3.60 07/01/98 2,400,000
Newport Beach RB VRDN Series 1996 C for Hoag Memorial Hospital (A-1+/VMIG1)
3,000,000 3.60 07/01/98 3,000,000
Northern California Power Agency Geothermal Project Number 3 Adjustable
Rate RB Series 1996 A (AMBAC) (A-1+/VMIG1)
50,000 3.10 07/07/98 50,000
Orange County Apartment Development RB Issue 1984 C for Seaside Meadow (KBC
Bank NV LOC) (A-1/VMIG1)
24,000,000 3.10 07/07/98 24,000,000
Orange County Apartment Development Refunding RB Series 1997 A for Larkspur
Canyon Apartments (FNMA) (A-1+)
6,635,000 3.25 07/07/98 6,635,000
Palo Alto Unified School District Series 1997 Sga 53 Municipal Securities
Trust Receipts (A-1+)
9,830,000 3.50 07/07/98 9,830,000
Sacramento County Housing Authority MF Hsg. R.B. for Stone Creek Apartment
(FNMA) (A-1+)
5,950,000 3.20 07/07/98 5,950,000
Sacramento County 1990 COPS Admin-Center Courthouse Project VRDN (Union
Bank of Switzerland LOC) (A-1+/VMIG1)
13,530,000 3.15 07/07/98 13,530,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CALIFORNIA (CONTINUED)
Sacramento County TRANS Series 1997 (SP 1+/MIG1)
$ 9,500,000 4.50% 09/30/98 $ 9,518,907
San Bernardino County VRDN Series 1985 for Woodview Apartments (Union Bank
of Switzerland LOC) (VMIG1)
6,500,000 3.15 07/07/98 6,500,000
San Diego County MF Hsg. RB VRDN Series 1985 C for Country Hills (FNMA)
(A-1+)
5,300,000 3.00 07/07/98 5,300,000
San Diego City Housing Authority MF Hsg. RB Series 1993 E for Carmel Del
Mar Apartments Project (Commerzbank AG LOC ) (A-1+)
6,000,000 3.30 07/07/98 6,000,000
San Diego County Water Authority CP Series 1 (A-1/P-1)
4,500,000 3.55 09/10/98 4,500,000
San Diego Transportation CP Series A (A-1+/P-1)
1,900,000 3.55 08/03/98 1,900,000
3,000,000 3.40 08/04/98 3,000,000
Santa Clara County TRANS Series 1997-98 (SP 1+/MIG1)
3,000,000 4.75 10/01/98 3,008,325
Southern California Metropolitan Water District CP Series A (A-1+/P-1)
5,400,000 3.65 07/30/98 5,400,000
2,000,000 3.65 09/04/98 2,000,000
Southern California Metropolitan Water District RB Series 1997 B
(A-1+/VMIG1)
9,000,000 3.20 07/07/98 9,000,000
Southern California Metropolitan Water District RB Series 1997 C
(A-1+/VMIG1)
3,700,000 3.90 07/07/98 3,700,000
Southern California Public Power Authority 1991 Subordinated Refunding RB
(AMBAC) (A-1+/VMIG1)
10,000,000 3.10 07/07/98 10,000,000
State of California GO CP (A-1/P-1)
1,800,000 3.75 07/17/98 1,800,000
Triunfo Sanitation District Refunding RB VRDN Series 1994 (Banque Nationale
de Paris LOC) (A-1+)
3,600,000 3.20 07/07/98 3,600,000
Tulare-Porterville Schools Finance Authority COPS (Union Bank of California
LOC) (VMIG1)
7,275,000 4.10 07/07/98 7,275,000
University of California Trust Receipts Series 1997 D (MBIA) (VMIG1)
10,905,000 3.70 07/07/98 10,905,000
- --------------------------------------------------------------------------------------------------
$553,478,575
- --------------------------------------------------------------------------------------------------
</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>
PUERTO RICO--8.6%
Commonwealth of Puerto Rico TRANS Series 1998 A (SP 1+/MIG1)
$ 1,000,000 4.50% 07/30/98 $ 1,000,629
Puerto Rico Government Development Bank CP (A-1+)
4,443,000 3.70 07/31/98 4,443,000
6,000,000 3.45 08/11/98 6,000,000
8,000,000 3.40 08/13/98 8,000,000
5,300,000 3.70 08/26/98 5,300,000
5,000,000 3.60 09/01/98 5,000,000
Puerto Rico Highway and Transportation Authority RB Series A (AMBAC) (A-
1+/MIG1)
23,200,000 3.00 07/07/98 23,200,000
- ------------------------------------------------------------------------------------------------
$ 52,943,629
- ------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $606,422,204(a)
- ------------------------------------------------------------------------------------------------
</TABLE>
(a) The amount stated also represents aggregate cost for federal income tax
purposes.
(b) When-issued security.
(c) A portion of this security is segregated for a when-issued security.
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.
17
<PAGE>
Statement of Investments
- --------------------------------------------------------------------------------
ILA TAX-EXEMPT NEW YORK PORTFOLIO
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK--87.5%
City of Yonkers IDA Series 1991 Civic Facility RB (Credit Local de France
LOC)(VMIG1)
$ 5,400,000 3.45% 07/07/98 $ 5,400,000
County of Westchester GO Bond Series 1990A(AAA/AAA)
500,000 6.70 02/01/99 508,541
Great Neck North Water Authority Water System RB Series 1993 A VRDN (FGIC)(A-
1+/VMIG1)
4,900,000 3.45 07/07/98 4,900,000
Long Island Power Authority Electric System Subordinated RB Series 1-6 (A-1+)
2,200,000 3.50 07/07/98 2,200,000
3,400,000 3.70 12/22/98 3,400,000
Metropolitan Museum of Art Variable Rate Interest Bonds (A- 1+/VMIG1)
400,000 3.20 07/07/98 400,000
Municipal Assistance Corporation for The City of New York, Series K, Subseries
K-1 (Westdeutsche Landesbank Girozentrale LOC)
(A-1+/VMIG1)
3,000,000 3.20 07/07/98 3,000,000
Municipal Assistance Corporation for The City of New York, Series K, Subseries
K-2 (Bayerische Landesbank Girozentrale LOC) (A-1+/VMIG1)
2,500,000 3.20 07/07/98 2,500,000
Municipal Assistance Corporation RB Series G for The City of New York (AA/AA2)
3,000,000 5.00 07/01/99 3,037,869
Nassau County Combined Sewer Districts RB Series 1988 A (MBIA)(AAA)
1,355,000 6.70 07/15/98 1,383,564
Nassau County TANS Series 1997 C (SP 1)
1,000,000 4.25 12/22/98 1,001,926
New York City Health & Hospitals Corp. Bonds Series 1997 B (Canadian Imperial
Bank of Commerce LOC)(A-1+/VMIG1)
5,200,000 3.30 07/07/98 5,200,000
New York City IDA-Civic Facility RB 1989 for National Audubon Society Inc.
(Credit Local de France LOC)(A-1+)
5,400,000 3.85 07/01/98 5,400,000
New York City Municipal Water Finance Authority Series 1994 C (FGIC) (A-
1+/VMIG1)
400,000 4.00 07/01/98 400,000
New York City Puttable Tax-exempt Receipts GO Bonds Series 1995 D
(MBIA)(VMIG1)
600,000 3.73 07/07/98 600,000
New York City Trust for Cultural Resources Bond Series 1990 B for Guggenheim
Foundation (Westdeutsche Landesbank Girozentrale LOC) (VMIG1)
3,575,000 3.85 07/01/98 3,575,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK (CONTINUED)
New York State Energy Research & Development Authority PCRB Series 1997 for
Brooklyn Union Gas (MBIA)(A-1+/VMIG1)
$ 5,850,000 3.45% 07/07/98 $ 5,850,000
New York State Energy Research & Development Authority PCRB Series 1994 B
for New York State Electric & Gas (Union Bank of Switzerland LOC)(A-
1+/VMIG1)
600,000 4.00 07/01/98 600,000
New York State Energy Research & Development Authority PCRB Series 1994 D
for New York State Electric & Gas (Union Bank of Switzerland LOC)(A-
1+/VMIG1)
600,000 3.80 07/01/98 600,000
New York State Energy Research & Development Authority PCRB Series 1985 A
for New York State Electric & Gas (Morgan Guaranty Trust LOC)(A-1+)
3,000,000 3.58 03/15/99 3,000,000
New York State Energy Research & Development Authority PCRB Series 1994 C
for New York State Electric & Gas (Morgan Guaranty Trust LOC)(A-1+/VMIG1)
1,100,000 3.80 07/01/98 1,100,000
New York State Energy Research & Development Authority PCRB Series A & B
for Central Hudson Gas & Electric (Deutsche Bank LOC)(P-1)
2,300,000 3.50 07/07/98 2,300,000
New York State Energy Research & Development Authority RB Series 1997 A-2
for Brooklyn Union Gas (MBIA)(A-1+VMIG1)
1,800,000 3.50 07/01/98 1,800,000
New York State Energy Research & Development Authority VRDN for Long Island
Lighting Co. (Toronto Dominion Bank LOC)(VMIG1)
3,000,000 3.60 07/07/98 3,000,000
New York State Energy Research & Development Authority VRDN Series 1995 A
for Orange and Rockland Utilities (AMBAC)
(A-1+/VMIG1)
400,000 3.25 07/07/98 400,000
New York State Environmental Quality 1986 Variable Interest Rate GO Bond
Series 1997A (Bayerische Landesbank Girozentrale/
Landesbank Hessen-Thueringen Girozentrale LOC)(A-1+/VMIG1)
2,000,000 3.85 07/23/98 2,000,000
2,000,000 3.75 08/17/98 2,000,000
New York State Floating Rate Trust Receipts Series 1997 Fr/ri-4 (A-1/P-1)
300,000 3.80 07/07/98 300,000
New York State Housing Finance Agency RB Series 1987 A for Normandie Court
II (Fleet Bank LOC)(VMIG1)
5,500,000 3.20 07/07/98 5,500,000
</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>
NEW YORK (CONTINUED)
New York State Housing Finance Agency RB Series 1997 A for Related-
liberty View Apartments (Federal National Mortgage Association) (A-1+)
$ 5,000,000 3.20% 07/07/98 $ 5,000,000
New York State Housing Finance Agency RB Series 1997 A for Tribeca Park
Housing (Bayerische Hypotheken-und Wechsel-bank LOC)(VMIG1)
7,000,000 3.30 07/07/98 7,000,000
New York State Local Government Assistance VRDN Series 1995 B (Bank of
Nova Scotia LOC)(A-1+/VMIG1)
3,000,000 3.15 07/07/98 3,000,000
New York State Local Government VRDN Series C (Landesbank Hessen-
Thueringen Girozentrale LOC)(A-1+/VMIG1)
2,400,000 3.15 07/07/98 2,400,000
Oswego County IDA PCRB Series 1992 for Philip Morris (A-1/P-1)
1,000,000 3.55 07/07/98 1,000,000
Port Authority of New York & New Jersey 108th Floating Rate Trust
Receipts (FSA)(A-1/P-1)
6,000,000 3.70 07/07/98 6,000,000
Port Authority of New York & New Jersey Versatile Structure Obligation
Series 6 (A-1+/VMIG1)
1,200,000 4.00 07/01/98 1,200,000
Rensselaer County IDA RB Series 1997A for Rensselaer Polytechnic
Institute (A2/VMIG1)
4,440,000 3.40 07/07/98 4,440,000
- ------------------------------------------------------------------------------------------------
$101,396,900
- ------------------------------------------------------------------------------------------------
PUERTO RICO--12.1%
Puerto Rico Government Development Bank TECP (A-1+)
$2,000,000 3.45% 08/11/98 $ 2,000,000
4,000,000 3.60 09/01/98 4,000,000
Puerto Rico Highway and Transportation Authority RB Series A (AMBAC)(A-
1+/VMIG1)
5,000,000 3.00 07/07/98 5,000,000
Puerto Rico Medical & Environmental PCRB Series 1983 A for Key
Pharmaceuticals (Morgan Guaranty LOC)
3,000,000 3.75 12/01/98 2,999,372
- ------------------------------------------------------------------------------------------------
$ 13,999,372
- ------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $115,396,272(a)
- ------------------------------------------------------------------------------------------------
</TABLE>
(a) The amount stated also represents aggregate cost for federal income tax
purposes.
- --------------------------------------------------------------------------------
Interest rates represent either the stated coupon rate, annualized yield on
date of purchase for discounted notes, or, for floating rate securities, the
current reset rate, which is based upon current interest rate indices.
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 type of securities.
The percentages shown for each investment category reflect the value of
investments in that category as a percentage of total net assets.
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENT ABBREVIATIONS:
<TABLE>
<C> <S>
AMBAC --Insured by American Municipal Bond Assurance Corp.
BANS --Bond Anticipation Notes
CFC --Insured by Cooperative Finance Corp.
COPS --Certificates of Participation
CP --Commercial Paper
FGIC --Insured by Financial Guaranty Insurance Co.
FSA --Insured by Financial Security Assurance
GO --General Obligation
HDA --Housing Development Authority
IDA --Industrial Development Authority
IDB --Industrial Development Bond
IDRB --Industrial Development Revenue Bond
LOC --Letter of Credit
MBIA --Insured by Municipal Bond Investors Assurance
MF Hsg. --Multi-Family Housing
PCRB --Pollution Control Revenue Bond
RANS --Revenue Anticipation Notes
RB --Revenue Bond
TANS --Tax Anticipation Notes
TECP --Tax Exempt Commercial Paper
TRANS --Tax Revenue Anticipation Notes
TRB --Tender Revenue Bond
UPDATE --Unit Priced Daily Adjustable Tax-Exempt Security
VRDN --Variable Rate Demand Note
</TABLE>
- --------------------------------------- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
19
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ILA ILA
PRIME MONEY ILA
OBLIGATIONS MARKET GOVERNMENT
PORTFOLIO PORTFOLIO PORTFOLIO
-------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at value
based on amortized cost $940,390,158 $1,296,595,180 $427,281,326
Receivable for investment securities
sold -- -- --
Interest receivable 5,999,612 7,461,534 1,544,328
Cash 207,144 297,183 112,827
Other assets 130,964 226,157 132,096
- -------------------------------------------------------------------------------
TOTAL ASSETS 946,727,878 1,304,580,054 429,070,577
- -------------------------------------------------------------------------------
LIABILITIES:
Payable for investment securities
purchased 29,982,450 14,992,614 --
Dividends payable 4,194,409 5,659,702 1,822,847
Accrued expenses and other liabili-
ties 416,731 515,684 208,740
- -------------------------------------------------------------------------------
TOTAL LIABILITIES 34,593,590 21,168,000 2,031,587
- -------------------------------------------------------------------------------
NET ASSETS:
Paid in capital 912,134,303 1,283,410,834 426,983,357
Accumulated undistributed net in-
vestment income -- -- 2,840
Accumulated undistributed net
realized gain (loss) on investment
transactions (15) 1,220 52,793
- -------------------------------------------------------------------------------
NET ASSETS $912,134,288 $1,283,412,054 $427,038,990
- -------------------------------------------------------------------------------
Net asset value, offering and re-
demption price per unit
(net assets/units outstanding) $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------
UNITS OUTSTANDING:
ILA units 772,572,768 928,083,498 327,184,179
ILA Administration units 40,942,459 317,693,589 8,558,357
ILA Service units 93,562,823 37,632,240 91,239,314
ILA B units 2,707,214 -- --
ILA C units 2,347,532 -- --
Cash Management shares 1,507 1,507 1,507
- -------------------------------------------------------------------------------
Total units of beneficial interest
outstanding, $.001 par value (un-
limited number of units autho-
rized) 912,134,303 1,283,410,834 426,983,357
- -------------------------------------------------------------------------------
</TABLE>
---------------------------------------
- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
20
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ILA ILA ILA ILA ILA
TREASURY TREASURY ILA TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
OBLIGATIONS INSTRUMENTS FEDERAL DIVERSIFIED CALIFORNIA NEW YORK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$899,036,992 $731,570,544 $2,475,179,530 $1,660,364,010 $606,422,204 $115,396,272
-- -- -- -- 5,000,000 --
1,470,237 13,614,625 9,074,210 12,199,122 4,605,707 649,864
8,035,667 150,165 272,224 25,572,970 23,677,414 101,435
26,463 52,263 93,302 188,967 76,850 71,175
- ---------------------------------------------------------------------------------------
908,569,359 745,387,597 2,484,619,266 1,698,325,069 639,782,175 116,218,746
- ---------------------------------------------------------------------------------------
-- -- 64,961,871 63,203,713 20,128,000 --
2,818,332 2,900,857 10,456,010 4,415,063 1,533,311 306,905
290,986 318,095 803,523 491,823 235,207 49,000
- ---------------------------------------------------------------------------------------
3,109,318 3,218,952 76,221,404 68,110,599 21,896,518 355,905
- ---------------------------------------------------------------------------------------
905,440,629 742,165,660 2,408,400,817 1,630,041,138 617,906,288 115,865,881
4,635 -- -- 362,642 10,495 1,634
14,777 2,985 (2,955) (189,310) (31,126) (4,674)
- ---------------------------------------------------------------------------------------
$905,460,041 $742,168,645 $2,408,397,862 $1,630,214,470 $617,885,657 $115,862,841
- ---------------------------------------------------------------------------------------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------
707,078,236 323,028,433 1,843,313,490 1,576,080,757 614,064,169 92,296,809
107,255,478 92,321,076 533,517,819 22,529,868 3,839,085 23,566,036
91,106,915 326,816,151 31,569,508 31,695,900 1,529 1,531
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- 1,505 1,505 1,505
- ---------------------------------------------------------------------------------------
905,440,629 742,165,660 2,408,400,817 1,630,308,030 617,906,288 115,865,881
- ---------------------------------------------------------------------------------------
</TABLE>
---------------------------------------
- ---------------------------------------
21
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ILA ILA
PRIME MONEY ILA
OBLIGATIONS MARKET GOVERNMENT
PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest Income $28,250,314 $40,242,003 $14,444,669
- -----------------------------------------------------------------------------
EXPENSES:
Management fees 1,732,269 2,476,439 897,996
Transfer agent fees 212,797 283,022 102,628
Custodian fees 98,434 119,608 57,722
Professional fees 17,601 15,748 15,609
Trustees' fees 7,460 5,307 3,943
Other 89,499 98,270 74,177
- -----------------------------------------------------------------------------
TOTAL EXPENSES 2,158,060 2,998,394 1,152,075
Less--Expenses reimbursable and fees
waived by Goldman Sachs (48,624) (322,102) (67,262)
- -----------------------------------------------------------------------------
Net Expenses 2,109,436 2,676,292 1,084,813
Administration unit fees 27,444 229,446 7,631
Service unit fees 194,619 65,467 174,821
- -----------------------------------------------------------------------------
NET EXPENSES AND UNIT FEES 2,331,499 2,971,205 1,267,265
- -----------------------------------------------------------------------------
NET INVESTMENT INCOME 25,918,815 37,270,798 13,177,404
- -----------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) ON INVESTMENT
TRANSACTIONS 4,097 3,519 --
- -----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $25,922,912 $37,274,317 $13,177,404
- -----------------------------------------------------------------------------
</TABLE>
---------------------------------------
- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
22
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ILA ILA ILA ILA ILA
TREASURY TREASURY ILA TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
OBLIGATIONS INSTRUMENTS FEDERAL DIVERSIFIED CALIFORNIA NEW YORK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$19,846,727 $17,790,279 $73,555,809 $30,752,631 $11,263,091 $2,311,672
- ----------------------------------------------------------------------------
1,244,211 1,176,086 4,621,353 3,020,564 1,166,521 234,516
142,196 134,410 528,155 345,208 133,317 26,802
75,375 76,327 216,407 77,344 27,967 11,478
15,337 15,678 21,270 23,579 9,580 13,172
4,102 4,149 13,865 8,176 2,356 527
55,692 66,609 84,337 61,404 19,717 42,791
- ----------------------------------------------------------------------------
1,536,913 1,473,259 5,485,387 3,536,275 1,359,458 329,286
(43,860) (672,141) (1,743,905) (776,716) -- (108,172)
- ----------------------------------------------------------------------------
1,493,053 801,118 3,741,482 2,759,559 1,359,458 221,114
75,466 69,375 391,065 16,982 1,122 16,833
182,377 542,060 66,635 58,764 5 5
- ----------------------------------------------------------------------------
1,750,896 1,412,553 4,199,182 2,835,305 1,360,585 237,952
- ----------------------------------------------------------------------------
18,095,831 16,377,726 69,356,627 27,917,326 9,902,506 2,073,720
- ----------------------------------------------------------------------------
114,034 144,565 4,270 90 (2,437) 1,845
- ----------------------------------------------------------------------------
$18,209,865 $16,522,291 $69,360,897 $27,917,416 $ 9,900,069 $2,075,565
- ----------------------------------------------------------------------------
</TABLE>
---------------------------------------
- ---------------------------------------
23
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended June 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ILA ILA
PRIME MONEY ILA
OBLIGATIONS MARKET GOVERNMENT
PORTFOLIO PORTFOLIO PORTFOLIO
------------------------------------------
<S> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 25,918,815 $ 37,270,798 $ 13,177,404
Net realized gain (loss) on
investment transactions 4,097 3,519 --
- --------------------------------------------------------------------------------
Net increase in net assets
resulting from operations 25,922,912 37,274,317 13,177,404
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS
FROM:
Net investment income
ILA units (22,495,968) (28,572,426) (10,832,881)
ILA Administration units (976,018) (7,895,864) (248,151)
ILA Service units (2,387,402) (802,497) (2,096,360)
ILA B units (39,276) -- --
ILA C units (20,139) -- --
Cash Management shares (12) (11) (12)
Net realized gain on invest-
ment transactions
ILA units (2,158) (1,762) --
ILA Administration units (94) (487) --
ILA Service units (229) (50) --
ILA B units (4) -- --
ILA C units (2) -- --
Cash Management shares -- -- --
- --------------------------------------------------------------------------------
Total distributions to
unitholders (25,921,302) (37,273,097) (13,177,404)
- --------------------------------------------------------------------------------
FROM UNIT TRANSACTIONS (AT
$1.00 PER UNIT):
Proceeds from sales of units 3,731,650,923 5,684,815,675 1,336,165,411
Reinvestment of dividends
and distributions 18,394,286 33,640,431 8,434,036
Cost of units repurchased (3,814,254,588) (5,569,137,969) (1,472,008,573)
- --------------------------------------------------------------------------------
Increase (decrease) in net
assets resulting from
unit transactions (64,209,379) 149,318,137 (127,409,126)
- --------------------------------------------------------------------------------
Total increase (decrease) (64,207,769) 149,319,357 (127,409,126)
NET ASSETS:
Beginning of period 976,342,057 1,134,092,697 554,448,116
- --------------------------------------------------------------------------------
End of period $ 912,134,288 $ 1,283,412,054 $ 427,038,990
- --------------------------------------------------------------------------------
Accumulated undistributed
net investment income -- -- $ 2,840
- --------------------------------------------------------------------------------
</TABLE>
---------------------------------------
- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
24
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ILA ILA ILA
ILA ILA TAX- TAX- TAX-
TREASURY TREASURY ILA EXEMPT EXEMPT EXEMPT
OBLIGATIONS INSTRUMENTS FEDERAL DIVERSIFIED CALIFORNIA NEW YORK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 18,095,831 $ 16,377,726 $ 69,356,627 $ 27,917,326 $ 9,902,506 $ 2,073,720
114,034 144,565 4,270 90 (2,437) 1,845
- ----------------------------------------------------------------------------------------------------
18,209,865 16,522,291 69,360,897 27,917,416 9,900,069 2,075,565
- ----------------------------------------------------------------------------------------------------
(13,300,211) (7,797,599) (55,159,154) (27,143,644) (9,879,689) (1,736,828)
(2,592,595) (2,268,453) (13,385,801) (353,893) (22,791) (336,864)
(2,203,068) (6,314,180) (811,672) (419,781) (19) (21)
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- (8) (7) (7)
(69,548) (68,330) (6,050) -- -- --
(13,557) (19,878) (1,468) -- -- --
(11,520) (55,331) (90) -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------
(18,190,499) (16,523,771) (69,364,235) (27,917,326) (9,902,506) (2,073,720)
- ----------------------------------------------------------------------------------------------------
2,224,499,489 1,445,143,640 7,498,470,521 5,968,063,449 1,814,267,427 431,929,135
7,846,782 6,778,405 57,076,124 24,705,166 9,598,216 2,037,946
(2,145,578,871) (1,434,063,462) (7,762,245,308) (5,900,520,073) (1,797,342,724) (452,988,325)
- ----------------------------------------------------------------------------------------------------
86,767,400 17,858,583 (206,698,663) 92,248,542 26,522,919 (19,021,244)
- ----------------------------------------------------------------------------------------------------
86,786,766 17,857,103 (206,702,001) 92,248,632 26,520,482 (19,019,399)
818,673,275 724,311,542 2,615,099,863 1,537,965,838 591,365,175 134,882,240
- ----------------------------------------------------------------------------------------------------
$ 905,460,041 $ 742,168,645 $ 2,408,397,862 $ 1,630,214,470 $ 617,885,657 $ 115,862,841
- ----------------------------------------------------------------------------------------------------
$ 4,635 -- -- $ 362,642 $ 10,495 $ 1,634
- ----------------------------------------------------------------------------------------------------
</TABLE>
---------------------------------------
- ---------------------------------------
25
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ILA ILA
PRIME MONEY ILA
OBLIGATIONS MARKET GOVERNMENT
PORTFOLIO (a) PORTFOLIO PORTFOLIO
------------------------------------------
<S> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 65,665,475 $ 64,160,830 $ 32,889,284
Net realized gain (loss) on
investment transactions 7,264 7,828 39,273
- --------------------------------------------------------------------------------
Net increase in net as-
sets resulting from op-
erations 65,672,739 64,168,658 32,928,557
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income
ILA units (59,354,126) (47,350,587) (27,429,780)
ILA Administration units (1,861,296) (15,644,221) (905,728)
ILA Service units (4,418,670) (1,166,022) (4,550,936)
ILA B units (26,790) -- --
ILA C units (4,593) -- --
Net realized gain on in-
vestment transactions
ILA units (7,654) (6,079) (48,379)
ILA Administration units (240) (2,008) (1,597)
ILA Service units (570) (150) (8,027)
ILA B units (3) -- --
ILA C units (1) -- --
- --------------------------------------------------------------------------------
Total distributions to
unitholders (65,673,943) (64,169,067) (32,944,447)
- --------------------------------------------------------------------------------
FROM UNIT TRANSACTIONS (AT
$1.00 PER UNIT):
Proceeds from sales of
units 8,100,238,207 10,177,000,201 3,631,302,781
Reinvestment of dividends
and distributions 36,672,387 54,788,884 17,235,209
Cost of units repurchased (8,424,145,429) (10,086,895,886) (3,919,007,935)
- --------------------------------------------------------------------------------
Increase (decrease) in
net assets resulting
from unit transactions (287,234,835) 144,893,199 (270,469,945)
- --------------------------------------------------------------------------------
Total increase (decrease) (287,236,039) 144,892,790 (270,485,835)
NET ASSETS:
Beginning of year 1,263,578,096 989,199,907 824,933,951
- --------------------------------------------------------------------------------
End of year $ 976,342,057 $ 1,134,092,697 $ 554,448,116
- --------------------------------------------------------------------------------
Accumulated undistributed
net investment income -- -- $ 2,840
- --------------------------------------------------------------------------------
</TABLE>
(a) ILA Prime Obligations Portfolio C unit activity commenced August 15, 1997.
(b) ILA Tax-Exempt California Portfolio and ILA Tax-Exempt New York Portfolio
Service unit activity commenced September 15, 1997.
---------------------------------------
- ---------------------------------------
The accompanying notes are an integral
part of these financial statements.
26
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ILA ILA ILA
ILA ILA TAX- TAX- TAX-
TREASURY TREASURY ILA EXEMPT EXEMPT EXEMPT
OBLIGATIONS INSTRUMENTS FEDERAL DIVERSIFIED CALIFORNIA NEW YORK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO (b) PORTFOLIO (b)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 38,604,333 $ 38,903,282 $ 142,229,502 $ 54,795,590 $ 15,994,349 $ 3,605,123
68,700 83,128 74,776 (15,310) 1,331 --
- -----------------------------------------------------------------------------------------------------
38,673,033 38,986,410 142,304,278 54,780,280 15,995,680 3,605,123
- -----------------------------------------------------------------------------------------------------
(27,001,884) (20,917,629) (106,705,052) (52,227,688) (15,984,157) (2,645,413)
(5,544,143) (4,217,185) (30,190,717) (1,423,227) (10,180) (959,697)
(6,053,628) (13,765,962) (5,333,733) (1,144,675) (12) (13)
-- -- -- -- -- --
-- -- -- -- -- --
(72,833) (51,900) (4,171) -- -- --
(14,954) (10,463) (1,180) -- -- --
(16,329) (34,156) (209) -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------
(38,703,771) (38,997,295) (142,235,062) (54,795,590) (15,994,349) (3,605,123)
- -----------------------------------------------------------------------------------------------------
5,211,063,367 3,670,371,899 16,814,872,375 9,843,836,580 3,353,570,112 827,650,114
13,130,596 16,821,105 103,222,618 43,365,293 14,638,737 3,317,213
(5,212,556,500) (4,193,476,260) (17,593,694,622) (9,951,681,538) (3,217,463,359) (810,579,568)
- -----------------------------------------------------------------------------------------------------
11,637,463 (506,283,256) (675,599,629) (64,479,665) 150,745,490 20,387,759
- -----------------------------------------------------------------------------------------------------
11,606,725 (506,294,141) (675,530,413) (64,494,975) 150,746,821 20,387,759
807,066,550 1,230,605,683 3,290,630,276 1,602,460,813 440,618,354 114,494,481
- -----------------------------------------------------------------------------------------------------
$ 818,673,275 $ 724,311,542 $ 2,615,099,863 $ 1,537,965,838 $ 591,365,175 $ 134,882,240
- -----------------------------------------------------------------------------------------------------
$ 4,678 $ 2,506 -- $ 362,642 $ 10,495 $ 1,634
- -----------------------------------------------------------------------------------------------------
</TABLE>
---------------------------------------
- ---------------------------------------
27
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- --------------------------------------------------------------------------------
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 Goldman Sachs--Institutional Liquid
Assets Portfolios, collectively "ILA". ILA consists of nine portfolios: Prime
Obligations, Money Market, Government, Treasury Obligations, Treasury
Instruments, Federal, Tax-Exempt Diversified, Tax-Exempt California and Tax-
Exempt New York. All of the portfolios are diversified except for the Tax-
Exempt California and Tax-Exempt New York Portfolios. ILA offers the following
classes:
<TABLE>
<CAPTION>
ILA ILA
ILA ILA Class Class Cash
ILA Administra- Service B C Management
Portfolio Units tion Units Units Units Units Shares
<S> <C> <C> <C> <C> <C> <C>
Prime
Obligations x x x x x x
- ------------------------------------------------------------------------------------
Money Market x x x x
- ------------------------------------------------------------------------------------
Government x x x x
- ------------------------------------------------------------------------------------
Treasury
Obligations x x x
- ------------------------------------------------------------------------------------
Treasury
Instruments x x x
- ------------------------------------------------------------------------------------
Federal x x x
- ------------------------------------------------------------------------------------
Tax-Exempt
Diversified x x x x
- ------------------------------------------------------------------------------------
Tax-Exempt
California x x x x
- ------------------------------------------------------------------------------------
Tax-Exempt
New York x x x x
</TABLE>
The investment objective of the portfolios 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 ILA. 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--
ILA 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 portfolio'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
its unitholders. Accordingly, no federal tax provisions are required.
The characterization of distributions to unitholders for financial reporting
purposes is determined in accordance with federal income tax rules. Therefore,
the source of the portfolios' 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 (tax year end), the following portfolios had capital loss
carryforwards for U.S. Federal tax purposes of approximately:
<TABLE>
<CAPTION>
YEARS OF
PORTFOLIO AMOUNT EXPIRATION
--------- -------- ------------
<S> <C> <C>
Tax-Exempt Diversified $189,400 1998 to 2005
Tax-Exempt New York 6,519 1999 to 2004
Tax-Exempt California 28,689 2000 to 2003
</TABLE>
These amounts are available to be carried forward to offset future capital
gains to the extent permitted by applicable laws or regulations.
---------------------------------------
- ---------------------------------------
28
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
D. Expenses---
Expenses incurred by ILA which do not specifically relate to an individual
portfolio of ILA are generally allocated to the portfolios based on each
portfolio's relative average net assets for the period.
Unitholders of ILA Administration, ILA Service, ILA B ILA C and Cash
Management classes bear all expenses and fees paid to service and distribution
organizations for their services with respect to such classes as well as other
expenses (subject to expense limitations) which are directly attributable to
such classes.
3. AGREEMENTS
Goldman Sachs Asset Management ("GSAM"), a separate operating division of
Goldman, Sachs & Co. ("Goldman Sachs"), acts as investment adviser (the
"Adviser") pursuant to an Investment Management Agreement (the "Agreement").
Under the Agreement, GSAM, subject to general supervision by the Trust's Board
of Trustees, manages the portfolios and provides for the administration of
ILA's other affairs. As compensation for the services rendered under the
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 .35%
of each portfolio's average daily net assets. For the six months ended June 30,
1998, GSAM has voluntarily agreed to waive a portion of its management fees for
the Money Market, Treasury Instruments, Federal, Tax-Exempt Diversified and
Tax-Exempt New York Portfolios, respectively.
Goldman Sachs also serves as ILA's transfer agent under a Transfer Agency
Agreement for a fee. In addition, Goldman Sachs acts as ILA's distributor under
a Distribution Agreement for which it receives no compensation except for the
ILA Class B and ILA Class C Units of Prime Obligations Portfolio. Amounts due
to Goldman Sachs are included in "Accrued expenses and other liabilities" in
the accompanying Statements of Assets and Liabilities.
GSAM has voluntarily agreed to reduce or limit the total operating expenses of
each Portfolio (excluding authorized dealer service, distribution,
administration and service plan fees, taxes, interest, brokerage commissions,
litigation, indemnification and other extraordinary expenses) on an annualized
basis to approximately .43% of the average net assets of each portfolio.
For the six months ended June 30, 1998, the Adviser waived certain fees and
expenses such that annualized "Management Fees", "Other Expenses" and "Total
Operating Expenses" actually incurred by the portfolios based on average net
assets were as follows:
<TABLE>
<CAPTION>
Management Other Total Operating
Portfolio Fees (%) Expenses(%) Expenses(%)
<S> <C> <C> <C>
Prime
Obligations .35 .07 .42
- -------------------------------------------------------
Money Market .32 .06 .38
- -------------------------------------------------------
Government .35 .07 .42
- -------------------------------------------------------
Treasury
Obligations .35 .07 .42
- -------------------------------------------------------
Treasury
Instruments .18 .06 .24
- -------------------------------------------------------
Federal .22 .06 .28
- -------------------------------------------------------
Tax-Exempt
Diversified .26 .06 .32
- -------------------------------------------------------
Tax-Exempt
California .35 .06 .41
- -------------------------------------------------------
Tax-Exempt New
York .27 .06 .33
</TABLE>
The ILA Class B Units, ILA Class C Units and Cash Management Shares have
adopted a Distribution Plan (the "Distribution Plan") pursuant to Rule 12b-1.
Under the Distribution Plan, Goldman Sachs is entitled to a monthly fee for
distribution services equal, on an annual basis, of up to .75% of the average
daily net assets attributable to ILA Class B Units and ILA Class C Units and
.50% of the average daily net assets attributable to Cash Management Shares.
Currently, Goldman Sachs has voluntarily agreed to limit the amount of such
---------------------------------------
- ---------------------------------------
29
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1998
(Unaudited)
- --------------------------------------- ---------------------------------------
3. AGREEMENTS (continued)
distribution fees on an annual basis, up to .07% of the average daily net
assets attributable to Cash Management Shares.
The ILA Class B Units and ILA Class C Units of Prime Obligations Portfolio
have also adopted an Authorized Dealer Service Plan (the "Service Plan")
pursuant to which Goldman Sachs and Authorized Dealers are compensated for
providing personal and account maintenance services. ILA Class B Units and ILA
Class C Units pay a fee under this Service Plan equal, on an annual basis, up
to .25% of ILA Class B and Class C units' average daily net assets.
The chart below outlines the fee waivers and expense reimbursements for the
six months ended June 30, 1998 and amounts owed to and due from Goldman Sachs
at June 30, 1998 (in thousands):
<TABLE>
<CAPTION>
Amounts
Amounts due
Management Expense due to from
Fee Reimburse- Goldman Goldman
Portfolio Waived ments Total Sachs Sachs
<S> <C> <C> <C> <C> <C>
Prime
Obligations $ -- $49 $ 49 $304 $--
- ------------------------------------------------------------
Money Market 225 97 322 412 67
- ------------------------------------------------------------
Government -- 67 67 140 34
- ------------------------------------------------------------
Treasury
Obligations -- 44 44 216 20
- ------------------------------------------------------------
Treasury
Instruments 577 95 672 155 41
- ------------------------------------------------------------
Federal 1,672 72 1,744 625 37
- ------------------------------------------------------------
Tax-Exempt
Diversified 777 -- 777 404 --
- ------------------------------------------------------------
Tax-Exempt
California -- -- -- 198 --
- ------------------------------------------------------------
Tax-Exempt New
York 54 54 108 30 49
</TABLE>
4. ADMINISTRATION AND SERVICE PLANS
ILA has adopted Administration and Service Plans. These plans allow for ILA
Administration Units, ILA Service Units and Cash Management Shares,
respectively, to compensate service organizations for providing varying levels
of account administration and unitholder liaison services to their customers
who are beneficial owners of such units. The Administration and Service Plans
provide for compensation to the service organizations in an amount up to .15%,
.40% and .50% (on an annualized basis), respectively, of the average daily net
asset value of the respective units.
5. LINE OF CREDIT FACILITY
ILA participates 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 Portfolio 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, ILA 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 by a custodian.
7. JOINT REPURCHASE AGREEMENT ACCOUNTS
The ILA Portfolios, together with other registered investment companies having
management agreements with GSAM or its affiliates, may 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, Government and Treasury Obligations Portfolios had investments in
the following joint repurchase account of $19,300,000, $148,400,000,
$103,700,000 and $400,600,000 in principal amount, respectively. At June 30,
1998, the repurchase agreements in this joint account,
- --------------------------------------- ---------------------------------------
30
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
7. JOINT REPURCHASE AGREEMENT ACCOUNTS (continued)
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>
JOINT REPURCHASE ACCOUNT
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 (U.S. Treasury Bills: $841,583,488, 10/08/98-04/29/99)
825,000,000 5.95 07/01/1998 825,000,000
Salomon-Smith Barney, Inc., 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>
At June 30, 1998, the Prime Obligations and Money Market Portfolios had also
invested in the following joint repurchase account II, which equaled
$50,000,000 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>
JOINT REPURCHASE ACCOUNT II
CIBC Oppenheimer, Inc., Dated 06/30/98, Repurchase price $250,039,583
(FHLMC: $255,475,165, 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, Inc., 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 Portfolios may enter into
certain principal transactions, including repurchase agreements, with Goldman,
Sachs & Co. subject to certain limitations which include the following: 25% of
eligible security transactions, as defined, and 10% of repurchase agreement
transactions.
---------------------------------------
- ---------------------------------------
31
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
9. SUMMARY OF UNIT TRANSACTIONS (AT $1.00 PER UNIT)
Unit activity for the six months ended June 30, 1998 is as follows:
<TABLE>
<CAPTION>
ILA ILA
PRIME MONEY ILA
OBLIGATIONS MARKET GOVERNMENT
PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
ILA UNITS:
Units sold 2,791,387,134 3,782,358,197 1,164,833,785
Reinvestment of dividends
and distributions 15,751,687 25,752,781 6,569,050
Units repurchased (2,900,971,944) (3,686,123,459) (1,304,641,838)
-------------------------------------
(93,833,123) 121,987,519 (133,239,003)
- -----------------------------------------------------------------------------
ILA ADMINISTRATION UNITS:
Units sold 206,159,245 1,829,054,989 15,445,883
Reinvestment of dividends
and distributions 886,154 7,712,823 148,795
Units repurchased (194,250,430) (1,826,554,428) (17,218,447)
-------------------------------------
12,794,969 10,213,384 (1,623,769)
- -----------------------------------------------------------------------------
ILA SERVICE UNITS:
Units sold 720,497,555 73,400,988 155,884,242
Reinvestment of dividends
and distributions 1,711,367 174,821 1,716,185
Units repurchased (706,965,614) (56,460,082) (150,148,288)
-------------------------------------
15,243,308 17,115,727 7,452,139
- -----------------------------------------------------------------------------
ILA CLASS B UNITS:
Units sold 4,303,559 -- --
Reinvestment of dividends
and distributions 32,567 -- --
Units repurchased (3,202,741) -- --
-------------------------------------
1,133,385 -- --
- -----------------------------------------------------------------------------
ILA CLASS C UNITS:
Units sold 9,301,929 -- --
Reinvestment of dividends
and distributions 12,505 -- --
Units repurchased (8,863,859) -- --
-------------------------------------
450,575 -- --
- -----------------------------------------------------------------------------
CASH MANAGEMENT SHARES:(A)
Units sold 1,501 1,501 1,501
Reinvestment of dividends
and distributions 6 6 6
Units repurchased -- -- --
-------------------------------------
1,507 1,507 1,507
- -----------------------------------------------------------------------------
Net increase (decrease) in
units (64,209,379) 149,318,137 (127,409,126)
- -----------------------------------------------------------------------------
</TABLE>
(a) Cash Management Shares activity commenced May 1, 1998.
32
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ILA ILA ILA ILA ILA
TREASURY TREASURY ILA TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
OBLIGATIONS INSTRUMENTS FEDERAL DIVERSIFIED CALIFORNIA NEW YORK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1,513,718,239 936,887,634 5,526,731,892 5,866,652,524 1,799,548,508 273,563,634
7,041,565 6,259,603 48,763,456 24,332,897 9,598,192 1,704,839
(1,403,960,563) (950,356,337) (5,782,717,636) (5,794,486,502) (1,786,104,071) (285,862,189)
- ----------------------------------------------------------------------------------------------
116,799,241 (7,209,100) (207,222,288) 96,498,919 23,042,629 (10,593,716)
- ----------------------------------------------------------------------------------------------
420,364,872 200,808,339 1,881,572,132 57,661,008 14,717,418 158,364,000
311,276 479,890 8,208,469 61,658 -- 333,082
(437,651,002) (207,631,440) (1,886,289,428) (63,159,904) (11,238,653) (167,126,136)
- ----------------------------------------------------------------------------------------------
(16,974,854) (6,343,211) 3,491,173 (5,437,238) 3,478,765 (8,429,054)
- ----------------------------------------------------------------------------------------------
290,416,378 307,447,667 90,166,497 43,748,416 -- --
493,941 38,912 104,199 310,607 20 21
(303,967,306) (276,075,685) (93,238,244) (42,873,667) -- --
- ----------------------------------------------------------------------------------------------
(13,056,987) 31,410,894 (2,967,548) 1,185,356 20 21
- ----------------------------------------------------------------------------------------------
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
- ----------------------------------------------------------------------------------------------
-- -- -- -- -- --
- ----------------------------------------------------------------------------------------------
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
- ----------------------------------------------------------------------------------------------
-- -- -- -- -- --
- ----------------------------------------------------------------------------------------------
-- -- -- 1,501 1,501 1,501
-- -- -- 4 4 4
-- -- -- -- -- --
- ----------------------------------------------------------------------------------------------
-- -- -- 1,505 1,505 1,505
- ----------------------------------------------------------------------------------------------
86,767,400 17,858,583 (206,698,663) 92,248,542 26,522,919 (19,021,244)
- ----------------------------------------------------------------------------------------------
</TABLE>
---------------------------------------
- ---------------------------------------
33
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1998
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
9. SUMMARY OF UNIT TRANSACTIONS (AT $1.00 PER UNIT) (continued)
Unit activity for the year ended December 31, 1997:
<TABLE>
<CAPTION>
ILA ILA
PRIME MONEY ILA
OBLIGATIONS MARKET GOVERNMENT
PORTFOLIO(A) PORTFOLIO PORTFOLIO
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
ILA UNITS:
Units sold 6,992,549,668 6,229,278,910 3,133,684,985
Reinvestment of dividends and
distributions 32,469,384 40,419,776 13,509,545
Units repurchased (7,313,358,850) (6,166,699,293) (3,381,375,693)
--------------------------------------
(288,339,798) 102,999,393 (234,181,163)
- ------------------------------------------------------------------------------
ILA ADMINISTRATION UNITS:
Units sold 305,758,205 3,772,593,876 76,180,173
Reinvestment of dividends and
distributions 1,666,739 14,007,620 255,167
Units repurchased (303,053,312) (3,736,379,689) (102,298,068)
--------------------------------------
4,371,632 50,221,807 (25,862,728)
- ------------------------------------------------------------------------------
ILA SERVICE UNITS:
Units sold 793,008,962 175,127,415 421,437,623
Reinvestment of dividends and
distributions 2,516,141 361,488 3,470,497
Units repurchased (801,916,230) (183,816,904) (435,334,174)
--------------------------------------
(6,391,127) (8,328,001) (10,426,054)
- ------------------------------------------------------------------------------
ILA CLASS B UNITS:
Units sold 6,341,071 -- --
Reinvestment of dividends and
distributions 19,157 -- --
Units repurchased (5,132,727) -- --
--------------------------------------
1,227,501 -- --
- ------------------------------------------------------------------------------
ILA CLASS C UNITS:
Units sold 2,580,301 -- --
Reinvestment of dividends and
distributions 966 -- --
Units repurchased (684,310) -- --
--------------------------------------
1,896,957 -- --
- ------------------------------------------------------------------------------
Net increase (decrease) in
units (287,234,835) 144,893,199 (270,469,945)
- ------------------------------------------------------------------------------
</TABLE>
(a) ILA Prime Obligations Portfolio C unit activity commenced August 15, 1997.
(b) ILA Tax-Exempt California Portfolio and ILA Tax-Exempt New York Portfolio
Service unit activity commenced September 15, 1997.
34
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ILA ILA ILA ILA ILA
TREASURY TREASURY ILA TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
OBLIGATIONS INSTRUMENTS FEDERAL DIVERSIFIED CALIFORNIA NEW YORK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO(B) PORTFOLIO(B)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
3,424,838,381 2,560,753,797 12,019,743,098 9,577,662,569 3,352,291,159 495,921,548
11,264,434 15,705,121 86,047,218 42,436,074 14,638,445 2,353,341
(3,420,432,815) (2,955,211,656) (12,358,958,269) (9,655,040,327) (3,216,403,921) (465,562,390)
- -------------------------------------------------------------------------------------------------
15,670,000 (378,752,738) (253,167,953) (34,941,684) 150,525,683 32,712,499
- -------------------------------------------------------------------------------------------------
878,884,012 330,854,584 4,080,488,784 87,602,648 1,277,453 331,727,066
510,538 973,977 15,900,268 171,471 283 963,862
(864,080,649) (370,865,445) (4,360,940,804) (118,904,272) (1,059,438) (345,017,178)
- -------------------------------------------------------------------------------------------------
15,313,901 (39,036,884) (264,551,752) (31,130,153) 218,298 (12,326,250)
- -------------------------------------------------------------------------------------------------
907,340,974 778,763,518 714,640,493 178,571,363 1,500 1,500
1,355,624 142,007 1,275,132 757,748 9 10
(928,043,036) (867,399,159) (873,795,549) (177,736,939) -- --
- -------------------------------------------------------------------------------------------------
(19,346,438) (88,493,634) (157,879,924) 1,592,172 1,509 1,510
- -------------------------------------------------------------------------------------------------
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
- -------------------------------------------------------------------------------------------------
-- -- -- -- -- --
- -------------------------------------------------------------------------------------------------
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
- -------------------------------------------------------------------------------------------------
-- -- -- -- -- --
- -------------------------------------------------------------------------------------------------
11,637,463 (506,283,256) (675,599,629) (64,479,665) 150,745,490 20,387,759
- -------------------------------------------------------------------------------------------------
</TABLE>
---------------------------------------
- ---------------------------------------
35
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Data for a Unit Outstanding Throughout Each Period
Prime Obligations Portfolio
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment
operations(d)
-----------------------------------
Net asset Net realized Total Net asset
value at Net gain on income from value at
beginning investment investment investment Distributions end Total
of period income transactions operations to unitholders(d) of period return(a)
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30,
(UNAUDITED)
- ---------------------------------
1998-ILA units.. $1.00 $0.0262 -- $0.0262 $(0.0262) $1.00 5.34%(b)
1998-ILA
Administration
units........... 1.00 0.0255 -- 0.0255 (0.0255) 1.00 5.18(b)
1998-ILA Service
units........... 1.00 0.0243 -- 0.0243 (0.0243) 1.00 4.94(b)
1998-ILA B
units........... 1.00 0.0212 -- 0.0212 (0.0212) 1.00 4.32(b)
1998-ILA C
units........... 1.00 0.0214 -- 0.0214 (0.0214) 1.00 4.32(b)
1998-Cash
Management
shares(c)....... 1.00 0.0082 -- 0.0082 (0.0082) 1.00 4.67(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 1.00 0.0524 -- 0.0524 (0.0524) 1.00 5.38
1997-ILA
Administration
units........... 1.00 0.0511 -- 0.0511 (0.0511) 1.00 5.22
1997-ILA Service
units........... 1.00 0.0485 -- 0.0485 (0.0485) 1.00 4.96
1997-ILA B
units........... 1.00 0.0433 -- 0.0433 (0.0433) 1.00 4.33
1997-ILA C
units(c)........ 1.00 0.0365 -- 0.0365 (0.0365) 1.00 4.41(b)
1996-ILA units.. 1.00 0.0511 -- 0.0511 (0.0511) 1.00 5.22
1996-ILA
Administration
units........... 1.00 0.0497 -- 0.0497 (0.0497) 1.00 5.06
1996-ILA Service
units........... 1.00 0.0474 -- 0.0474 (0.0474) 1.00 4.80
1996-ILA B
units(c)........ 1.00 0.0262 -- 0.0262 (0.0262) 1.00 3.97(b)
1995-ILA units.. 1.00 0.0566 -- 0.0566 (0.0566) 1.00 5.79
1995-ILA
Administration
units........... 1.00 0.0551 -- 0.0551 (0.0551) 1.00 5.63
1995-ILA Service
units........... 1.00 0.0522 -- 0.0522 (0.0522) 1.00 5.37
1994-ILA units.. 1.00 0.0394 -- 0.0394 (0.0394) 1.00 4.07
1994-ILA
Administration
units........... 1.00 0.0379 -- 0.0379 (0.0379) 1.00 3.91
1994-ILA Service
units........... 1.00 0.0365 -- 0.0365 (0.0365) 1.00 3.66
1993-ILA units.. 1.00 0.0291 0.0002 0.0293 (0.0293) 1.00 2.97
1993-ILA
Administration
units........... 1.00 0.0275 0.0003 0.0278 (0.0278) 1.00 2.82
1993-ILA Service
units........... 1.00 0.0250 0.0001 0.0251 (0.0252) 1.00 2.56
<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 net investment
expenses to income to end of expenses to income to
average net average net 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,
(UNAUDITED)
- ---------------------------------
1998-ILA units.. 0.42%(b) 5.28%(b) $772,613 0.43%(b) 5.27%(b)
1998-ILA
Administration
units........... 0.57(b) 5.13(b) 40,905 0.58(b) 5.12(b)
1998-ILA Service
units........... 0.82(b) 4.90(b) 93,559 0.83(b) 4.89(b)
1998-ILA B
units........... 1.42(b) 4.27(b) 2,707 1.43(b) 4.26(b)
1998-ILA C
units........... 1.42(b) 4.32(b) 2,348 1.43(b) 4.31(b)
1998-Cash
Management
shares(c)....... 0.99(b) 4.71(b) 2 1.43(b) 4.27(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 0.42 5.24 866,445 0.43 5.23
1997-ILA
Administration
units........... 0.57 5.11 28,110 0.58 5.10
1997-ILA Service
units........... 0.82 4.85 78,316 0.83 4.84
1997-ILA B
units........... 1.42 4.33 1,574 1.43 4.32
1997-ILA C
units(c)........ 1.42(b) 4.39(b) 1,897 1.43(b) 4.38(b)
1996-ILA units.. 0.41 5.11 1,154,787 0.43 5.09
1996-ILA
Administration
units........... 0.56 4.97 23,738 0.58 4.95
1996-ILA Service
units........... 0.81 4.74 84,707 0.83 4.72
1996-ILA B
units(c)........ 1.41(b) 4.09(b) 346 1.43(b) 4.07(b)
1995-ILA units.. 0.41 5.66 1,261,251 0.43 5.64
1995-ILA
Administration
units........... 0.56 5.51 63,018 0.58 5.49
1995-ILA Service
units........... 0.81 5.22 227,233 0.83 5.20
1994-ILA units.. 0.40 3.94 1,963,846 0.42 3.92
1994-ILA
Administration
units........... 0.55 3.79 149,234 0.57 3.77
1994-ILA Service
units........... 0.80 3.65 170,453 0.82 3.63
1993-ILA units.. 0.40 2.91 2,332,771 0.42 2.89
1993-ILA
Administration
units........... 0.55 2.75 189,431 0.57 2.73
1993-ILA Service
units........... 0.80 2.50 137,804 0.82 2.48
</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) ILA Class B Unit, ILA Class C Unit, and Cash Management Shares activity
commenced May 8, 1996, August 15, 1997 and May 1, 1998, respectively.
(d) Calculated based on the average units outstanding methodology.
- ------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
Selected Data for a Unit Outstanding Throughout Each Period
Money Market Portfolio
- -------------------------------------------------------------------------------
<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 unitholders(d) of period return(a)
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30,
(UNAUDITED)
- ---------------------------------
1998-ILA units.. $1.00 $ 0.0263 -- $ 0.0263 $(0.0263) $1.00 5.38%(b)
1998-ILA
Administration
units........... 1.00 0.0256 -- 0.0256 (0.0256) 1.00 5.22(b)
1998-ILA Service
units........... 1.00 0.0243 -- 0.0243 (0.0243) 1.00 4.96(b)
1998-Cash
Management
shares(c)....... 1.00 0.0082 -- 0.0082 (0.0082) 1.00 4.73(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 1.00 0.0531 0.0531 (0.0531) 1.00 5.43
1997-ILA
Administration
units........... 1.00 0.0515 -- 0.0515 (0.0515) 1.00 5.28
1997-ILA Service
units........... 1.00 0.0490 -- 0.0490 (0.0490) 1.00 5.01
1996-ILA units.. 1.00 0.0515 0.0001 0.0516 (0.0516) 1.00 5.27
1996-ILA
Administration
units........... 1.00 0.0500 0.0001 0.0501 (0.0501) 1.00 5.12
1996-ILA Service
units........... 1.00 0.0475 0.0001 0.0476 (0.0476) 1.00 4.86
1995-ILA units.. 1.00 0.0571 -- 0.0571 (0.0571) 1.00 5.85
1995-ILA
Administration
units........... 1.00 0.0555 -- 0.0555 (0.0555) 1.00 5.69
1995-ILA Service
units........... 1.00 0.0529 -- 0.0529 (0.0529) 1.00 5.43
1994-ILA units.. 1.00 0.0401 -- 0.0401 (0.0401) 1.00 4.13
1994-ILA
Administration
units........... 1.00 0.0388 -- 0.0388 (0.0388) 1.00 3.98
1994-ILA Service
units........... 1.00 0.0364 -- 0.0364 (0.0364) 1.00 3.72
1993-ILA units.. 1.00 0.0296 0.0003 0.0299 (0.0299) 1.00 3.03
1993-ILA
Administration
units........... 1.00 0.0281 0.0003 0.0284 (0.0284) 1.00 2.88
1993-ILA Service
units........... 1.00 0.0257 0.0002 0.0259 (0.0259) 1.00 2.62
<CAPTION>
Ratios assuming no
waiver of fees and no
expense limitations
-------------------------
Ratio of net
Ratio of net Net investment
Ratio of net investment assets at Ratio of net income to
expenses to income to end expenses to average
average net average net of period average net net
assets assets (in 000's) assets assets
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30,
(UNAUDITED)
- ---------------------------------
1998-ILA units.. 0.38%(b) 5.31%(b) $928,084 0.42%(b) 5.27%(b)
1998-ILA
Administration
units........... 0.53(b) 5.16(b) 317,693 0.57(b) 5.12(b)
1998-ILA Service
units........... 0.78(b) 4.90(b) 37,632 0.82(b) 4.86(b)
1998-Cash
Management
shares(c)....... 0.95(b) 4.74(b) 2 1.42(b) 4.27(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 0.37 5.31 806,096 0.42 5.26
1997-ILA
Administration
units........... 0.52 5.15 307,480 0.57 5.10
1997-ILA Service
units........... 0.77 4.90 20,517 0.82 4.85
1996-ILA units.. 0.36 5.15 703,097 0.43 5.08
1996-ILA
Administration
units........... 0.51 5.00 257,258 0.58 4.93
1996-ILA Service
units........... 0.76 4.75 28,845 0.83 4.68
1995-ILA units.. 0.36 5.71 574,155 0.42 5.65
1995-ILA
Administration
units........... 0.51 5.55 164,422 0.57 5.49
1995-ILA Service
units........... 0.76 5.29 23,080 0.82 5.23
1994-ILA units.. 0.35 4.01 559,470 0.43 3.93
1994-ILA
Administration
units........... 0.50 3.88 145,867 0.58 3.80
1994-ILA Service
units........... 0.75 3.61 21,862 0.83 3.53
1993-ILA units.. 0.35 2.96 699,604 0.43 2.88
1993-ILA
Administration
units........... 0.50 2.81 150,452 0.58 2.73
1993-ILA Service
units........... 0.75 2.57 11,166 0.83 2.49
</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) Cash Management Shares activity commenced May 1, 1998.
(d) Calculated based on the average units outstanding methodology.
- ------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
37
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
Selected Data for a Unit Outstanding Throughout Each Period
Government Portfolio
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment operations(d)
------------------------------------------
Net
Net assets realized Total Net asset
value at Net gain on income from value at
beginning investment investment investment Distributions end Total
of period income transactions operations to unitholders(d) of period return(a)
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
- ---------------------------------------------
1998-ILA units.. $1.00 $ 0.0258 -- $ 0.0258 $(0.0258) $1.00 5.26%(b)
1998-ILA
Administration
units........... 1.00 0.0250 -- 0.0250 (0.0250) 1.00 5.10(b)
1998-ILA Service
units........... 1.00 0.0238 -- 0.0238 (0.0238) 1.00 4.86(b)
1998-Cash
Management
shares(c)....... 1.00 0.0080 -- 0.0080 (0.0080) 1.00 4.61(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 1.00 0.0516 -- 0.0516 (0.0516) 1.00 5.31
1997-ILA
Administration
units........... 1.00 0.0499 -- 0.0499 (0.0498) 1.00 5.15
1997-ILA Service
units........... 1.00 0.0478 -- 0.0478 (0.0478) 1.00 4.89
1996-ILA units.. 1.00 0.0504 0.0001 0.0505 (0.0504) 1.00 5.15
1996-ILA
Administration
units........... 1.00 0.0489 0.0001 0.0490 (0.0489) 1.00 4.99
1996-ILA Service
units........... 1.00 0.0463 0.0001 0.0464 (0.0463) 1.00 4.73
1995-ILA units.. 1.00 0.0562 0.0002 0.0564 (0.0564) 1.00 5.77
1995-ILA
Administration
units........... 1.00 0.0549 0.0002 0.0551 (0.0551) 1.00 5.62
1995-ILA Service
units........... 1.00 0.0519 0.0002 0.0521 (0.0521) 1.00 5.35
1994-ILA units.. 1.00 0.0378 0.0002 0.0380 (0.0380) 1.00 3.94
1994-ILA
Administration
units........... 1.00 0.0362 0.0002 0.0364 (0.0364) 1.00 3.79
1994-ILA Service
units........... 1.00 0.0350 0.0002 0.0352 (0.0352) 1.00 3.53
1993-ILA units.. 1.00 0.0282 0.0008 0.0290 (0.0291) 1.00 2.94
1993-ILA
Administration
units........... 1.00 0.0267 0.0008 0.0275 (0.0276) 1.00 2.79
1993-ILA Service
units........... 1.00 0.0242 0.0006 0.0248 (0.0250) 1.00 2.53
<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 net 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, (UNAUDITED)
- ---------------------------------------------
1998-ILA units.. 0.42%(b) 5.21%(b) $ 327,218 0.45%(b) 5.18%(b)
1998-ILA
Administration
units........... 0.57(b) 5.05(b) 8,568 0.60(b) 5.02(b)
1998-ILA Service
units........... 0.82(b) 4.80(b) 91,251 0.85(b) 4.77(b)
1998-Cash
Management
shares(c)....... 0.99(b) 4.64(b) 2 1.45(b) 4.18(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 0.42 5.16 460,457 0.42 5.16
1997-ILA
Administration
units........... 0.57 4.98 10,192 0.57 4.98
1997-ILA Service
units........... 0.82 4.78 83,799 0.82 4.78
1996-ILA units.. 0.41 5.04 694,651 0.44 5.01
1996-ILA
Administration
units........... 0.56 4.89 36,055 0.59 4.86
1996-ILA Service
units........... 0.81 4.63 94,228 0.84 4.60
1995-ILA units.. 0.41 5.62 570,469 0.43 5.60
1995-ILA
Administration
units........... 0.56 5.49 47,558 0.58 5.47
1995-ILA Service
units........... 0.81 5.19 85,401 0.83 5.17
1994-ILA units.. 0.40 3.78 881,520 0.44 3.74
1994-ILA
Administration
units........... 0.55 3.62 95,483 0.59 3.58
1994-ILA Service
units........... 0.80 3.50 156,930 0.84 3.46
1993-ILA units.. 0.40 2.82 1,315,378 0.43 2.79
1993-ILA
Administration
units........... 0.55 2.67 161,845 0.58 2.64
1993-ILA Service
units........... 0.80 2.42 101,272 0.83 2.39
</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) Cash Management Shares activity commenced May 1, 1998.
(d) Calculated based on the average units outstanding methodology.
- ------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
38
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
Selected Data for a Unit Outstanding Throughout Each Period
Treasury Obligations Portfolio
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment operations(c)
-------------------------------------------
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 unitholders(c) of period return(a)
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
- ---------------------------------------------
1998-ILA units.. $1.00 $ 0.0256 $ 0.0002 $ 0.0258 $(0.0258) $1.00 5.24%(b)
1998-ILA
Administration
units........... 1.00 0.0249 0.0002 0.0251 (0.0251) 1.00 5.08(b)
1998-ILA Service
units........... 1.00 0.0236 0.0002 0.0238 (0.0238) 1.00 4.84(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 1.00 0.0514 0.0001 0.0515 (0.0513) 1.00 5.26
1997-ILA
Administration
units........... 1.00 0.0500 0.0001 0.0501 (0.0508) 1.00 5.10
1997-ILA Service
units........... 1.00 0.0474 0.0001 0.0475 (0.0478) 1.00 4.84
1996-ILA units.. 1.00 0.0498 0.0002 0.0500 (0.0500) 1.00 5.11
1996-ILA
Administration
units........... 1.00 0.0483 0.0003 0.0486 (0.0486) 1.00 4.95
1996-ILA Service
units........... 1.00 0.0459 0.0001 0.0460 (0.0460) 1.00 4.69
1995-ILA units.. 1.00 0.0551 0.0007 0.0558 (0.0558) 1.00 5.73
1995-ILA
Administration
units........... 1.00 0.0537 0.0007 0.0544 (0.0544) 1.00 5.57
1995-ILA Service
units........... 1.00 0.0511 0.0007 0.0518 (0.0518) 1.00 5.31
1994-ILA units.. 1.00 0.0377 -- 0.0377 (0.0377) 1.00 3.91
1994-ILA
Administration
units........... 1.00 0.0368 -- 0.0368 (0.0368) 1.00 3.75
1994-ILA Service
units........... 1.00 0.0340 -- 0.0340 (0.0340) 1.00 3.49
1993-ILA units.. 1.00 0.0279 0.0006 0.0285 (0.0286) 1.00 2.89
1993-ILA
Administration
units........... 1.00 0.0264 0.0006 0.0270 (0.0270) 1.00 2.74
1993-ILA Service
units........... 1.00 0.0239 0.0006 0.0245 (0.0246) 1.00 2.48
<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 net 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, (UNAUDITED)
- ---------------------------------------------
1998-ILA units.. 0.42%(b) 5.16%(b) $ 707,194 0.43%(b) 5.15%(b)
1998-ILA
Administration
units........... 0.57(b) 5.02(b) 107,188 0.58(b) 5.01(b)
1998-ILA Service
units........... 0.82(b) 4.76(b) 91,078 0.83(b) 4.75(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 0.42 5.12 590,381 0.42 5.12
1997-ILA
Administration
units........... 0.57 4.99 124,159 0.57 4.99
1997-ILA Service
units........... 0.82 4.73 104,133 0.82 4.73
1996-ILA units.. 0.41 4.98 574,734 0.43 4.96
1996-ILA
Administration
units........... 0.56 4.83 108,850 0.58 4.81
1996-ILA Service
units........... 0.81 4.59 123,483 0.83 4.57
1995-ILA units.. 0.41 5.51 711,209 0.43 5.49
1995-ILA
Administration
units........... 0.56 5.37 92,643 0.58 5.35
1995-ILA Service
units........... 0.81 5.11 119,692 0.83 5.09
1994-ILA units.. 0.40 3.77 713,816 0.44 3.73
1994-ILA
Administration
units........... 0.55 3.68 97,626 0.59 3.64
1994-ILA Service
units........... 0.80 3.40 108,972 0.84 3.35
1993-ILA units.. 0.40 2.79 969,565 0.43 2.76
1993-ILA
Administration
units........... 0.55 2.64 121,327 0.58 2.61
1993-ILA Service
units........... 0.80 2.39 185,506 0.83 2.36
</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) Calculated based on the average units outstanding methodology.
- ------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
39
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
Selected Data for a Unit Outstanding Throughout Each Period
Treasury Instruments Portfolio
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment operations(c)
-------------------------------------------
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 unitholders(c) of period return(a)
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
- ---------------------------------------------
1998-ILA units $1.00 $ 0.0251 $ 0.0002 $ 0.0253 $(0.0253) $1.00 5.16%(b)
1998-ILA
Administration
units........... 1.00 0.0244 0.0002 0.0246 (0.0246) 1.00 5.00(b)
1998-ILA Service
units........... 1.00 0.0231 0.0002 0.0233 (0.0233) 1.00 4.76(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 1.00 0.0502 0.0001 0.0503 (0.0503) 1.00 5.17
1997-ILA
Administration
units........... 1.00 0.0488 0.0001 0.0489 (0.0489) 1.00 5.01
1997-ILA Service
units........... 1.00 0.0463 0.0001 0.0464 (0.0464) 1.00 4.75
1996-ILA units.. 1.00 0.0496 0.0004 0.0500 (0.0500) 1.00 5.10
1996-ILA
Administration
units........... 1.00 0.0482 0.0004 0.0486 (0.0486) 1.00 4.95
1996-ILA Service
units........... 1.00 0.0456 0.0004 0.0460 (0.0460) 1.00 4.68
1995-ILA units.. 1.00 0.0550 0.0006 0.0556 (0.0556) 1.00 5.70
1995-ILA
Administration
units........... 1.00 0.0534 0.0007 0.0541 (0.0540) 1.00 5.54
1995-ILA Service
units........... 1.00 0.0500 0.0005 0.0505 (0.0505) 1.00 5.28
1994-ILA units.. 1.00 0.0397 0.0001 0.0398 (0.0398) 1.00 4.01
1994-ILA
Administration
units........... 1.00 0.0397 0.0001 0.0398 (0.0398) 1.00 3.85
1994-ILA Service
units........... 1.00 0.0371 0.0001 0.0372 (0.0372) 1.00 3.59
1993-ILA units.. 1.00 0.0288 0.0006 0.0294 (0.0294) 1.00 2.98
1993-ILA
Administration
units........... 1.00 0.0273 0.0006 0.0279 (0.0279) 1.00 2.83
1993-ILA Service
units........... 1.00 0.0248 0.0006 0.0254 (0.0254) 1.00 2.57
<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 net 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, (UNAUDITED)
- ---------------------------------------------
1998-ILA units 0.24%(b) 5.06%(b) $323,032 0.44%(b) 4.86%(b)
1998-ILA
Administration
units........... 0.39(b) 4.91(b) 92,324 0.59(b) 4.71(b)
1998-ILA Service
units........... 0.64(b) 4.65(b) 326,813 0.84(b) 4.45(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 0.22 5.02 330,241 0.42 4.82
1997-ILA
Administration
units........... 0.37 4.88 98,667 0.57 4.68
1997-ILA Service
units........... 0.62 4.63 295,404 0.82 4.43
1996-ILA units.. 0.21 4.96 708,999 0.43 4.74
1996-ILA
Administration
units........... 0.36 4.82 137,706 0.58 4.60
1996-ILA Service
units........... 0.61 4.56 383,901 0.83 4.34
1995-ILA units.. 0.21 5.50 586,294 0.44 5.27
1995-ILA
Administration
units........... 0.36 5.34 68,713 0.59 5.11
1995-ILA Service
units........... 0.61 5.00 123,254 0.84 4.77
1994-ILA units.. 0.20 3.96 547,351 0.43 3.73
1994-ILA
Administration
units........... 0.35 3.97 64,388 0.58 3.74
1994-ILA Service
units........... 0.60 3.72 74,451 0.83 3.49
1993-ILA units.. 0.20 2.88 456,411 0.44 2.64
1993-ILA
Administration
units........... 0.35 2.73 26,553 0.59 2.49
1993-ILA Service
units........... 0.60 2.48 34,014 0.84 2.24
</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) Calculated based on the average units outstanding methodology.
- ------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
40
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
Selected Data for a Unit Outstanding Throughout Each Period
Federal Portfolio
- -------------------------------------------------------------------------------
<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 unitholders(d) of period return(a)
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
- ---------------------------------------------
1998-ILA units.. $1.00 $ 0.0262 -- $ 0.0262 $(0.0262) $ 1.00 5.34%(b)
1998-ILA
Administration
units........... 1.00 0.0255 -- 0.0255 (0.0255) 1.00 5.20(b)
1998-ILA Service
units........... 1.00 0.0242 -- 0.0242 (0.0242) 1.00 4.94(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 1.00 0.0526 -- 0.0526 (0.0526) 1.00 5.40
1997-ILA
Administration
units........... 1.00 0.0511 -- 0.0511 (0.0511) 1.00 5.24
1997-ILA Service
units........... 1.00 0.0483 -- 0.0483 (0.0483) 1.00 4.98
1996-ILA units.. 1.00 0.0513 -- 0.0513 (0.0513) 1.00 5.24
1996-ILA
Administration
units........... 1.00 0.0498 -- 0.0498 (0.0498) 1.00 5.09
1996-ILA Service
units........... 1.00 0.0473 -- 0.0473 (0.0473) 1.00 4.83
1995-ILA units.. 1.00 0.0569 -- 0.0569 (0.0569) 1.00 5.83
1995-ILA
Administration
units........... 1.00 0.0550 -- 0.0550 (0.0550) 1.00 5.67
1995-ILA Service
units........... 1.00 0.0522 -- 0.0522 (0.0522) 1.00 5.41
1994-ILA units.. 1.00 0.0407 -- 0.0407 (0.0407) 1.00 4.11
1994-ILA
Administration
units........... 1.00 0.0388 -- 0.0388 (0.0388) 1.00 3.95
1994-ILA Service
units........... 1.00 0.0392 -- 0.0392 (0.0392) 1.00 3.69
1993-ILA units.. 1.00 0.0296 -- 0.0296 (0.0296) 1.00 3.00
1993-ILA
Administration
units........... 1.00 0.0281 -- 0.0281 (0.0281) 1.00 2.84
1993-ILA Service
units (c)....... 1.00 0.0157 -- 0.0157 (0.0157) 1.00 2.56(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 net 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, (UNAUDITED)
- ---------------------------------------------
1998-ILA units.. 0.28%(b) 5.29%(b) $ 1,843,335 0.42%(b) 5.15%(b)
1998-ILA
Administration
units........... 0.43(b) 5.14(b) 533,491 0.57(b) 5.00(b)
1998-ILA Service
units........... 0.68(b) 4.89(b) 31,572 0.82(b) 4.75(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 0.27 5.26 2,050,559 0.41 5.12
1997-ILA
Administration
units........... 0.42 5.11 530,001 0.56 4.97
1997-ILA Service
units........... 0.67 4.83 34,540 0.81 4.69
1996-ILA units.. 0.26 5.13 2,303,677 0.43 4.96
1996-ILA
Administration
units........... 0.41 4.98 794,537 0.58 4.81
1996-ILA Service
units........... 0.66 4.73 192,416 0.83 4.56
1995-ILA units.. 0.26 5.69 1,731,935 0.42 5.53
1995-ILA
Administration
units........... 0.41 5.50 516,917 0.57 5.34
1995-ILA Service
units........... 0.66 5.22 102,576 0.82 5.06
1994-ILA units.. 0.25 4.07 1,625,567 0.42 3.90
1994-ILA
Administration
units........... 0.40 3.88 329,896 0.57 3.71
1994-ILA Service
units........... 0.65 3.92 15,539 0.82 3.75
1993-ILA units.. 0.25 2.96 1,430,292 0.42 2.79
1993-ILA
Administration
units........... 0.40 2.81 362,401 0.57 2.64
1993-ILA Service
units (c)....... 0.65(b) 2.54(b) 1,425 0.82(b) 2.37(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) ILA Service unit activity commenced during April of 1991; no shares were
outstanding during the period from August 7, 1991 through May 15, 1993.
(d) Calculated based on the average units outstanding methodology.
- ------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
41
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
Selected Data for a Unit Outstanding Throughout Each Period
Tax-Exempt Diversified Portfolio
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment operations(d)
------------------------------------
Net asset Net realized Total Net asset
value at Net gain (loss) income from value at
beginning investment on investment investment Distributions end Total
of period income transactions operations to unitholders(d) of period return(a)
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30,
(UNAUDITED)
- ---------------------------------
1998-ILA units.. $1.00 $0.0161 -- $0.0161 $(0.0161) $1.00 3.29%(b)
1998-ILA
Administration
units........... 1.00 0.0155 -- 0.0155 (0.0155) 1.00 3.13(b)
1998-ILA Service
units........... 1.00 0.0142 -- 0.0142 (0.0142) 1.00 2.88(b)
1998-Cash
Management
shares(c)....... 1.00 0.0051 -- 0.0051 (0.0051) 1.00 2.81(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 1.00 0.0333 0.0333 (0.0333) 1.00 3.39
1997-ILA
Administration
units........... 1.00 0.0316 -- 0.0316 (0.0316) 1.00 3.23
1997-ILA Service
units........... 1.00 0.0297 -- 0.0297 (0.0297) 1.00 2.97
1996-ILA units.. 1.00 0.0320 -- 0.0320 (0.0320) 1.00 3.25
1996-ILA
Administration
units........... 1.00 0.0306 -- 0.0306 (0.0306) 1.00 3.09
1996-ILA Service
units........... 1.00 0.0279 -- 0.0279 (0.0279) 1.00 2.84
1995-ILA units.. 1.00 0.0365 -- 0.0365 (0.0365) 1.00 3.72
1995-ILA
Administration
units........... 1.00 0.0351 -- 0.0351 (0.0352) 1.00 3.57
1995-ILA Service
units........... 1.00 0.0324 -- 0.0324 (0.0325) 1.00 3.31
1994-ILA units.. 1.00 0.0264 -- 0.0264 (0.0264) 1.00 2.71
1994-ILA
Administration
units........... 1.00 0.0250 -- 0.0250 (0.0250) 1.00 2.55
1994-ILA Service
units........... 1.00 0.0220 -- 0.0220 (0.0220) 1.00 2.30
1993-ILA units.. 1.00 0.0222 -- 0.0222 (0.0222) 1.00 2.25
1993-ILA
Administration
units........... 1.00 0.0207 -- 0.0207 (0.0207) 1.00 2.09
1993-ILA Service
units........... 1.00 0.0183 -- 0.0183 (0.0183) 1.00 1.84
<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 net investment
expenses to income to end of expenses to income to
average net average net period average net average net
assets assets (in 000's) assets assets
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30,
(UNAUDITED)
- ---------------------------------
1998-ILA units.. 0.32%(b) 3.24%(b) $1,575,984 0.41%(b) 3.15%(b)
1998-ILA
Administration
units........... 0.47(b) 3.12(b) 22,530 0.56(b) 3.03(b)
1998-ILA Service
units........... 0.72(b) 2.86(b) 31,698 0.81(b) 2.77(b)
1998-Cash
Management
shares(c)....... 0.89(b) 2.67(b) 2 1.41(b) 2.15(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 0.32 3.33 1,479,486 0.41 3.24
1997-ILA
Administration
units........... 0.47 3.16 27,967 0.56 3.07
1997-ILA Service
units........... 0.72 2.97 30,513 0.81 2.88
1996-ILA units.. 0.31 3.20 1,514,443 0.41 3.10
1996-ILA
Administration
units........... 0.46 3.06 59,097 0.56 2.96
1996-ILA Service
units........... 0.71 2.79 28,921 0.81 2.69
1995-ILA units.. 0.31 3.65 1,342,585 0.42 3.54
1995-ILA
Administration
units........... 0.46 3.51 48,773 0.57 3.40
1995-ILA Service
units........... 0.71 3.24 49,647 0.82 3.13
1994-ILA units.. 0.30 2.64 1,434,965 0.41 2.53
1994-ILA
Administration
units........... 0.45 2.50 97,778 0.56 2.39
1994-ILA Service
units........... 0.70 2.20 36,492 0.81 2.09
1993-ILA units.. 0.30 2.22 1,769,477 0.41 2.11
1993-ILA
Administration
units........... 0.45 2.08 99,896 0.56 1.97
1993-ILA Service
units........... 0.70 1.83 45,172 0.81 1.72
</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) Cash Management Shares activity commenced May 1, 1998.
(d) Calculated based on the average units outstanding methodology.
- ------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
42
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
Selected Data for a Unit Outstanding Throughout Each Period
Tax-Exempt California Portfolio
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment operations(e)
------------------------------------
Net asset Net realized Total Net asset
value at Net gain (loss) income from value at
beginning investment on investment investment Distributions end Total
of period income transactions operations to unitholders(e) of period return(a)
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
- ---------------------------------------------
1998-ILA units.. $1.00 $0.0147 -- $0.0147 $(0.0147) $1.00 3.00%(b)
1998-ILA
Administration
units........... 1.00 0.0150 -- 0.0150 (0.0150) 1.00 2.86(b)
1998-ILA Service
units........... 1.00 0.0132 -- 0.0132 (0.0132) 1.00 2.60(b)
1998-Cash
Management
shares (d)...... 1.00 0.0047 -- 0.0047 (0.0047) 1.00 2.57(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 1.00 0.0310 -- 0.0310 (0.0310) 1.00 3.15
1997-ILA
Administration
units........... 1.00 0.0298 -- 0.0298 (0.0301) 1.00 3.00
1997-ILA Service
units (c)....... 1.00 0.0085 -- 0.0085 (0.0080) 1.00 2.87(b)
1996-ILA units.. 1.00 0.0299 -- 0.0299 (0.0299) 1.00 3.03
1996-ILA
Administration
units........... 1.00 0.0284 -- 0.0284 (0.0284) 1.00 2.88
1995-ILA units.. 1.00 0.0349 -- 0.0349 (0.0350) 1.00 3.55
1995-ILA
Administration
units........... 1.00 0.0332 -- 0.0332 (0.0332) 1.00 3.40
1994-ILA units.. 1.00 0.0250 -- 0.0250 (0.0250) 1.00 2.53
1994-ILA
Administration
units........... 1.00 0.0233 -- 0.0233 (0.0233) 1.00 2.37
1993-ILA units.. 1.00 0.0206 -- 0.0206 (0.0206) 1.00 2.09
1993-ILA
Administration
units........... 1.00 0.0191 -- 0.0191 (0.0191) 1.00 1.93
1993-ILA Service
units........... 1.00 0.0166 -- 0.0166 (0.0166) 1.00 1.68
<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 net investment
expenses to income to end of expenses to income to
average net average net 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, (UNAUDITED)
- ---------------------------------------------
1998-ILA units.. 0.41%(b) 2.97%(b) $614,043 0.41%(b) 2.97%(b)
1998-ILA
Administration
units........... 0.56(b) 3.03(b) 3,839 0.56(b) 3.03(b)
1998-ILA Service
units........... 0.81(b) 2.57(b) 2 0.81(b) 2.57(b)
1998-Cash
Management
shares (d)...... 0.98(b) 2.40(b) 2 1.41(b) 1.97(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 0.42 3.10 591,003 0.42 3.10
1997-ILA
Administration
units........... 0.57 2.98 360 0.57 2.98
1997-ILA Service
units (c)....... 0.82(b) 2.90(b) 2 0.82(b) 2.90(b)
1996-ILA units.. 0.41 2.99 440,476 0.42 2.98
1996-ILA
Administration
units........... 0.56 2.84 142 0.57 2.83
1995-ILA units.. 0.41 3.49 346,728 0.41 3.49
1995-ILA
Administration
units........... 0.56 3.32 61 0.56 3.32
1994-ILA units.. 0.40 2.50 227,399 0.41 2.49
1994-ILA
Administration
units........... 0.55 2.33 790 0.56 2.32
1993-ILA units.. 0.40 2.06 229,839 0.44 2.02
1993-ILA
Administration
units........... 0.55 1.91 1,425 0.59 1.87
1993-ILA Service
units........... 0.76 1.66 -- 0.84 1.54
</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) No Service units were outstanding for the years ended December 31, 1994,
1995 and 1996. ILA Service unit activity re-commenced during September of
1997.
(d) Cash Management Shares activity commenced May 1, 1998.
(e) Calculated based on the average units outstanding methodology.
- ------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
43
<PAGE>
Goldman Sachs Trust--Institutional Liquid Assets
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
Selected Data for a Unit Outstanding Throughout Each Period
Tax-Exempt New York Portfolio
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment operations(d)
------------------------------------
Net asset Net realized Total Net asset
value at Net gain (loss) income from value at
beginning investment on investment investment Distributions end Total
of period income transactions operations to unitholders(d) of period return(a)
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
- ---------------------------------------------
1998-ILA units.. $1.00 $0.0154 -- $0.0154 $(0.0154) $1.00 3.17%(b)
1998-ILA
Administration
units........... 1.00 0.0149 -- 0.0149 (0.0149) 1.00 3.00(b)
1998-ILA Service
units........... 1.00 0.0137 -- 0.0137 (0.0137) 1.00 2.76(b)
1998-Cash
Management
shares(c)....... 1.00 0.0048 -- 0.0048 (0.0048) 1.00 2.75(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 1.00 0.0325 -- 0.0325 (0.0325) 1.00 3.29
1997-ILA
Administration
units........... 1.00 0.0310 -- 0.0310 (0.0310) 1.00 3.14
1997-ILA Service
units(c)........ 1.00 0.0089 -- 0.0089 (0.0089) 1.00 3.02(b)
1996-ILA units.. 1.00 0.0301 -- 0.0301 (0.0301) 1.00 3.05
1996-ILA
Administration
units........... 1.00 0.0288 -- 0.0288 (0.0288) 1.00 2.90
1995-ILA units.. 1.00 0.0344 -- 0.0344 (0.0344) 1.00 3.51
1995-ILA
Administration
units........... 1.00 0.0328 -- 0.0328 (0.0328) 1.00 3.35
1994-ILA units.. 1.00 0.0262 -- 0.0262 (0.0262) 1.00 2.56
1994-ILA
Administration
units........... 1.00 0.0247 -- 0.0247 (0.0247) 1.00 2.41
1993-ILA units.. 1.00 0.0221 -- 0.0221 (0.0221) 1.00 2.21
1993-ILA
Administration
units........... 1.00 0.0205 -- 0.0205 (0.0205) 1.00 2.05
<CAPTION>
Ratios assuming no
waiver of fees and no
expense limitations
-------------------------
Ratio of net Net Ratio of Ratio of net
Ratio of net investment assets at net 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, (UNAUDITED)
- ---------------------------------------------
1998-ILA units.. 0.33%(b) 3.11%(b) $92,295 0.49%(b) 2.95%(b)
1998-ILA
Administration
units........... 0.48(b) 3.00(b) 23,564 0.64(b) 2.84(b)
1998-ILA Service
units........... 0.73(b) 2.71(b) 2 0.89(b) 2.55(b)
1998-Cash
Management
shares(c)....... 0.90(b) 2.54(b) 2 1.49(b) 1.95(b)
FOR THE YEARS ENDED DECEMBER 31,
- --------------------------------
1997-ILA units.. 0.33 3.24 102,887 0.43 3.14
1997-ILA
Administration
units........... 0.48 3.09 31,993 0.58 2.99
1997-ILA Service
units(c)........ 0.73(b) 3.04(b) 2 0.83(b) 2.94(b)
1996-ILA units.. 0.32 3.01 70,175 0.43 2.90
1996-ILA
Administration
units........... 0.47 2.88 44,319 0.58 2.77
1995-ILA units.. 0.30 3.44 90,537 0.44 3.30
1995-ILA
Administration
units........... 0.45 3.28 26,724 0.59 3.14
1994-ILA units.. 0.24 2.62 84,517 0.47 2.39
1994-ILA
Administration
units........... 0.39 2.47 38,970 0.62 2.24
1993-ILA units.. 0.10 2.21 48,367 0.51 1.80
1993-ILA
Administration
units........... 0.25 2.05 20,306 0.66 1.64
</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) ILA Service unit and Cash Management Shares activity commenced September
15, 1997 and May 1, 1998, respectively.
(d) Calculated based on the average units outstanding methodology.
- ------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
44
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------- ---------------------------------------
- --------------------------------------------------------------------------------
This Semiannual Report is authorized for distribution to prospective investors
only when preceded or accompanied by a Goldman Sachs Trust--Money Market Funds,
Institutional Liquid Assets Prospectus which contains facts concerning each
Portfolio's objectives and policies, management, expenses and other
information.
- --------------------------------------------------------------------------------
45
<PAGE>
TRUSTEES
Ashok N. Bakhru, Chairman
David B. Ford
Douglas C. Grip
John P. McNulty
Mary P. McPherson
Alan A. Shuch
Jackson W. Smart, Jr.
William H. Springer
Richard P. Strubel
OFFICERS
Douglas C. Grip, President
Jesse Cole, Vice President
James A. Fitzpatrick, 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
GOLDMAN SACHS
Investment Adviser,
Distribution and Transfer Agent
Goldman Sachs Funds [LOGO]
One New York Plaza, 41st Floor Goldman
New York, NY 10004 Sachs
