GOLDMAN SACHS TRUST
N-30D, 2000-11-08

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GOLDMAN SACHS INTERNATIONAL SMALL CAP FUND

Market Overview

Dear Shareholder:

International equities generated mixed results, as a correction in the technology sector and contrasting country-specific fundamentals impacted the market.

• Market Review: Giving Back Early Gains — After an encouraging strong start, international equity markets gave back the bulk of their gains. As was the case in the U.S., the early rally was very narrow, with technology, media and telecom (TMT) sectors moving sharply forward. This strong performance overshadowed the poor results in most other areas of the market. Then, in March 2000, a sharp correction in the TMT sectors occurred, dragging down much of the market. As the period progressed, concerns over the direction of global interest rates and the questionable prospects for many ‘new economy’ stocks undermined investor confidence. The extreme volatility experienced in recent months was compounded by thin trading volumes in most major markets. High valuations and adverse company-specific news also exacerbated market jitters. European, Asian and Japanese markets largely followed the correction in the U.S. market, although data in Europe and ongoing cost-cutting and restructuring in Asia paint a more positive picture for these regional economies.

• Market Outlook: Reasons for Long-term Optimism — We remain optimistic about the long-term outlook for international equities, despite the weakness in world equity markets this year and, most notably, the recent correction in so-called ‘new economy’ sectors. Our view is predicated on the continuation of the current favorable mix around the world of positive economic growth and relatively subdued inflation, which is providing a supportive environment for corporate earnings growth and equity market valuations. Furthermore, our confidence is bolstered by the significant correction in some highly rated areas of the market, which we considered to be vulnerable to changes in investor sentiment. In addition, the marked de-rating of TMT stocks has enabled us to raise our exposure to companies in whose fundamentals we have a high degree of conviction, and which we believe are well-positioned to outperform over the long-term.

  As always, we appreciate your support and we look forward to serving your investment needs in the years to come.

  Sincerely,

David B. Ford		David W. Blood
Co-Head, Goldman Sachs Asset Management		Co-Head, Goldman Sachs Asset Management
September 15, 2000

 

GOLDMAN SACHS INTERNATIONAL SMALL CAP FUND

GOLDMAN SACHS INTERNATIONAL SMALL CAP FUND

Fund Basics

as of August 31, 2000

PERFORMANCE REVIEW
August 31, 1999–August 31, 2000	Fund Total Return (without sales charge)1		MSCI EAFE Small Cap2
Class A	26.26	%	3.24	%
Class B	25.66		3.24
Class C	25.58		3.24
Institutional	27.12		3.24
Service	26.57		3.24

¹ The net asset value represents the net assets of the Fund (ex-dividend) divided by the total number of shares. The Fund’s performance assumes the reinvestment of dividends and other distributions.

² The unmanaged MSCI EAFE Small Cap Index, incepted 1/15/98, includes 1,502 securities from 23 developed markets with a capitalization range of $200–$800 million and a general regional allocation of 60% Europe, 30% Japan and 10% Asia. Total returns are calculated without dividends reinvested. The Index figures do not reflect fees or expenses. In addition, investors cannot invest directly in the Index.

STANDARDIZED TOTAL RETURNS3
For the period ended 6/30/00		Class A		Class B		Class C		Institutional		Service
One Year		28.60	%	30.23	%	34.39	%	37.07	%	36.31	%
Since inception		23.12		24.83		25.89		27.21		26.47
(5/1/98)

³ The Standardized Total Returns are average annual total returns or cumulative total returns (only if the performance period is one year or less) as of the most recent calendar quarter-end. They assume reinvestment of all distributions at net asset value. These returns reflect a maximum initial sales charge of 5.5% for Class A shares, the assumed deferred sales charge for Class B shares (5% maximum declining to 0% after six years) and the assumed deferred sales charge for Class C shares (1% if redeemed within 12 months of purchase). Because Institutional and Service shares do not involve a sales charge, such a charge is not applied to their Standardized Total Returns.

Total return figures represent past performance and do not indicate future results, which will vary. The investment return and principal value of an investment will fluctuate and, therefore, an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance reflects expense limitations in effect. In their absence, performance would be reduced.

TOP 10 HOLDINGS AS OF 8/31/00
Holding		% of Total Net Assets			Line of Business
Thiel Logistik AG		1.7	%		Computer Software
Vestas Wind Systems A/S		1.7			Energy Resources
SmartForce PLC ADR		1.7			Information Services
Group 4 Falck A/S		1.6			Electrical Equipment
Guardian IT PLC		1.5			Business Services
Unibail		1.4			Real Estate
Saipem SpA		1.4			Energy Resources
Altran Technologies		1.3			Business Services
Banca Popolare di Milano BPM		1.2			Banks
Matalan PLC		1.2			Real Estate

The top 10 holdings may not be representative of the Fund’s future investments.

1

GOLDMAN SACHS INTERNATIONAL SMALL CAP FUND

Performance Overview

Dear Shareholder,

We are pleased to report on the performance of the Goldman Sachs International Small Cap Fund for the one year period that ended August 31, 2000.

Performance Review

Over the one-year period that ended August 31, 2000, the Fund’s Class A, B, C, Institutional and Service share classes produced cumulative total returns, without sales charges, of 26.26%, 25.66%, 25.58%, 27.12% and 26.57%, respectively. These results handily outpaced the 3.24% cumulative total return of the Fund’s benchmark, the Morgan Stanley Capital International (MSCI) Small Cap Europe, Australasia, Far East Index (EAFE).

The Fund’s outperformance during the period was primarily attributable to a significant contribution from regional stock selection.

Portfolio Composition

The Fund’s weightings in each of the three key regions of Japan, Europe and Asia were 32.1%, 53.5% and 7.2%, respectively, as of August 31, 2000. Our objective is to add value more through stock selection within each region. In recent months some of the Fund’s best performance has come from stocks in Europe.

Portfolio Highlights

• Group 4 Falck A/S (Formerly Falck) — Is a European security provider that has produced strong results for the Fund. The firm recently merged with Group 4 Securitas, one of the world’s largest security organizatons. We believe in its new form, Falck is poised to deliver excellent growth and penetration in the fragmented European security services market.
• Aderans Co. Ltd. — Aderans is a good example of one of the Fund’s niche holdings. The company is a Japan-based specialist wig manufacturer, and it has generated very strong results for the Fund.
• Giordano International Ltd. — This Hong Kong based clothing retailer produced outstanding results during the reporting period. Economic conditions in the region continue to improve, aiding Giordano’s sales and revenues.

  Key New Acquisitions

  In recent months the Fund added holdings in Thiel Logistik AG, which continues to win contracts for advanced logistics solutions, and in Bookham in the semiconductor sector. Both of these holdings have now more than doubled since their initial purchase.

2

GOLDMAN SACHS INTERNATIONAL SMALL CAP FUND

Portfolio Outlook

As we move forward, we will continue to seek fast growing companies at attractive valuations. As in the past, our strategy will aim to identify dynamic organizations either benefiting from a structural change in the market, such as outsourcing of services, or companies operating in a particularly attractive market niche. The Fund’s significant outperformance since its inception indicates the long term strength of our investment process. Looking ahead, we believe that as bond yields further stabilize, the strong growth rates for the companies within the Fund, and their attractive valuations versus other growth stocks, we’ll be well positioned for the longer term. Consequently, we feel that the Fund offers excellent value.

We thank you for your investment and look forward to your continued confidence.

Goldman Sachs International Small Cap Equity Investment Team

London
September 15, 2000

3

GOLDMAN SACHS INTERNATIONAL SMALL CAP FUND

The Goldman Sachs Advantage

Founded in 1869, Goldman, Sachs & Co. is a premier financial services firm traditionally known on Wall Street and around the world for its institutional expertise.

Today, the firm’s Investment Management Division provides individual investors the opportunity to tap the resources of a global institutional powerhouse — and put this expertise to work in their individual portfolios.

What Sets Goldman Sachs Funds Apart

---

Our portfolio management teams are located on-site, around the world, in New York, London, Tokyo and Singapore. Their understanding of local economies, markets, industries and cultures helps deliver what many investors want: access to global investment opportunities and consistent, risk-adjusted performance.

Our portfolio management teams make on-site visits to hundreds of companies each month, then construct selective portfolios with an emphasis on their best ideas. Our teams also have access to Goldman, Sachs & Co.’s Global Investment Research Department.

In this, our institutional heritage is clear. Institutions, as well as many individual investors, often look to us to manage the risks of global investing over time in different market environments.

---

To learn more about the Goldman Sachs Funds, call your investment professional today.

4

The following graph shows the value as of August 31, 2000, of a $10,000 investment made on May 1, 1998 (commencement of operations) in Class A Shares (maximum sales charge of 5.5%) of the Goldman Sachs International Small Cap Fund. For comparative purposes, the performance of the Fund’s benchmarks (Morgan Stanley Capital International EAFE Small Cap Index unhedged (“MSCI Small Cap EAFE”)) is shown. This performance data represents past performance and should not be considered indicative of future performance which will fluctuate with changes in market conditions. These performance fluctuations will cause an investor’s shares, when redeemed, to be worth more or less than their original cost. Performance of Class B, Class C, Institutional and Service shares will vary, from Class A due to difference in fees and loads.

International Small Cap Fund’s Lifetime Performance

Growth of a $10,000 Investment, Distributions Reinvested May 1, 1998 to August 31, 2000.

Average Annual Total Return through August 31, 2000 (a)		Since Inception		One Year
Class A
Excluding sales charges		24.56%		26.26%
Including sales charges		21.59%		19.32%
Class B
Excluding contingent deferred sales charges		24.11%		25.66%
Including contingent deferred sales charges		23.11%		20.48%
Class C
Excluding contingent deferred sales charges		24.07%		25.58%
Including contingent deferred sales charges		24.07%		24.55%
Institutional		25.40%		27.12%
Service		24.69%		26.57%

(a)

Commencement date of operations was May 1, 1998 for all classes.

Shares		Description		Value
Common Stock – 90.0%
Australia – 1.8%
735,000		APN News & Media Ltd. (Publishing)		$    2,034,421
609,900		Fairfax (John) Holdings Ltd. (Publishing)		1,790,147
250,000		Primary Health Care Ltd. (Health)		834,701
389,400		QBE Insurance Group Ltd. (Insurance)		1,942,336
89,762		Tab Corp. Holdings Ltd. (Entertainment)		509,849
282,177		Westfield Holdings Ltd. (Real Estate)		2,017,696
				9,129,150
Austria – 0.2%
48,251		Cybertron Telekom AG (Telecomunications)		856,697
Denmark – 4.0%
146,193		DSV, De Sammensluttede Vognmaend af Series B* (Transportation)		3,516,892
52,237		Group 4 Falck A/S (Electrical Equipment)		8,180,597
202,104		Vestas Wind Systems A/S (Energy Resources)		8,977,693
				20,675,182
Finland – 2.0%
161,480		Elisa Communications Oyj Series A (Telecommunications)		6,135,547
451,886		JOT Automation Group Oyj (Industrial Equipment)		3,092,958
44,674		Nokian Renkaat Oyj (Auto)		1,249,270
1,025		Talentum (Publishing)		11,556
				10,489,331
France – 8.2%
27,581		Altran Technologies (Business Services)		6,527,711
47,017		Coface (Insurance)		4,424,371
50,100		Compagnie Generale de Geophysique SA* (Energy Resources)		3,736,008
24,676		Diosos* (Diversified Industrial Manufacturing)		920,057
350,275		Elior* (Food & Beverage)		3,793,672
35,585		FI System* (Business Services)		2,132,365
27,379		IPSOS (Media)		3,660,440
2,666		Jet Multimedia (Information Services)		148,868
142,291		Kalisto Entertainment* (Entertainment)		2,475,850
47,747		Royal Canin SA (Grocery)		4,611,750
75,560		SR Teleperformance (Multi-Industry)		2,951,450
48,457		Unibail (Real Estate)		7,356,029
				42,738,571

Shares		Description		Value
Common Stock – (continued)
Germany – 3.3%
40,565		Allbecon AG (Business Services)		$    1,206,388
2,480		Concept! AG* (Internet)		80,359
40,860		D. Logistics AG* (Business Services)		3,888,517
71,075		Dis Deutscher Industrie (Business Services)		2,997,100
37,290		Intershop Communication AG* (Computer Software)		3,393,181
29,280		Rhoen-Klinikum AG (Health)		1,258,077
70,482		Wedeco AG* (Business Services)		2,408,961
35,667		Zapf Creaton AG (Entertainment)		1,899,803
				17,132,386
Hong Kong – 2.2%
560,200		Dah Sing Financial Holdings (Banks)		2,614,602
903,000		Dickson Concepts International Ltd. (Specialty Retail)		804,699
5,656,000		Giordano International Ltd. (Specialty Retail)		3,172,842
1,520,000		Hang Lung Development Co. Ltd. (Real Estate)		1,413,002
1,254,000		Legend Holding Ltd. (Electronic Components)		1,334,556
542,000		Li & Fung Ltd. (Wholesale)		2,362,867
				11,702,568
Ireland – 3.0%
1,215,800		Independent News & Media PLC (Publishing)		4,145,983
1,036,092		Kingspan Group PLC (Construction)		2,759,373
167,900		SmartForce PLC ADR* (Information Services)		8,730,800
				15,636,156
Italy – 5.5%
258,902		Banca Popolare Commercio e Industria Ordinary Shares (Banks)		6,042,502
922,203		Banca Popolare di Milano BPM (Banks)		6,467,619
503,318		Brembo SpA (Auto)		4,736,299
375,191		Gruppo Coin SpA* (Department Store)		4,329,986
1,242,041		Saipem SpA (Energy Resources)		7,189,096
				28,765,502
Japan – 31.8%
67,000		ABLE, Inc. (Real Estate)		1,130,802
102,700		Aderans Co. Ltd. (Specialty Retail)		4,073,334
205,000		Alpine Electronics Inc. (Electronics Equipment)		3,171,589
150,000		Amatsuji Steel Ball Manufacturing Co. Ltd. (Industrial Parts)		1,378,340
44,000		ARRK Corp. (Manufacturing)		2,227,848
6,800		Bellsystem24, Inc. (Business Services)		3,270,886

Shares		Description		Value
Common Stocks – (continued)
Japan – (continued)
43,000		Citizen Electronic (Electrical Equipment)		$    4,475,387
73,000		Culture Convenience Club Co. Ltd.* (Specialty Retail)		1,218,378
257,000		Daiwa Electronics (Consumer Durables)		869,920
85,000		Eneserve Corp. (Energy Resources)		3,984,998
52,500		Enplas Corp. (Electrical Equipment)		3,312,940
336,000		Foster Electric Co. Ltd. (Electrical Equipment)		2,457,384
45,000		Fuji Electronics Co. Ltd. (Wholesale)		898,734
33,700		Fuji Seal (Heavy Machinery)		1,722,128
74,800		Fujimi, Inc. (Diversified Industrial Manufacturing)		3,373,540
328,000		Fujitec Co. Ltd. (Construction)		3,013,971
204,000		Fukuda Denshi Co. Ltd. (Health)		4,016,878
18,000		Funai Electric Co. Ltd. (Electrical Equipment)		2,236,287
15,000		Funai Electric Co. Ltd. New Shares* (Electrical Equipment)		1,863,573
204,700		Hakuto Co. (Electrical Equipment)		6,353,090
435,000		Hitachi Powdered Metals (Mining)		4,731,364
55		Intelligence Ltd. (Business Services)		1,180,966
231,500		Iuchi Seieido Co. (Electrical Equipment)		3,603,282
119,900		Japan Business Computer Co. Ltd. (Computer Software)		3,822,410
171,100		Japan CBM Corp. (Electrical Equipment)		2,406,470
435,000		Kato Sangyo Co. Ltd. (Food & Beverage)		2,651,196
294,000		Kawasumi Labs, Inc. (Chemicals)		2,759,438
111,100		Koekisha Co. Ltd. (Medical Providers)		4,791,936
196,900		Komeri Co. Ltd. (Home Products)		5,815,612
85,300		Kuroda Electric Co. Ltd. (Electronics Equipment)		2,879,325
288		Kyoto Kimono Yuzen Co. Ltd. (Specialty Retail)		1,755,274
81,000		Medical Support Co. (Food & Beverage)		1,594,937
121,100		Meitec Corp. (Business Services)		5,597,966
40,800		Milbon Co. Ltd. (Consumer Non- Durables)		2,677,919
209,500		Ministop Co. Ltd. (Specialty Retail)		4,655,556
117,000		Mirai Industry Co. Ltd. (Multi- Industry)		1,481,013
96,000		Mitta Co. Ltd* (Specialty Retail)		1,989,311
211,000		MKC-STAT Corp. (Business Services)		5,203,282
76,600		Nagaileben Co. Ltd. (Apparel)		1,537,028
266,000		Nippon Kanzai Co. (Business Services)		4,240,038
284,000		Ogura Clutch Co. Ltd. (Auto)		2,290,108
30,000		Otsuka Shokai Co. Ltd. (Computer Software)		2,030,942

Shares		Description		Value
Common Stocks – (continued)
Japan – (continued)
39,000		OZEKI Co. Ltd. (Grocery)		$    2,066,104
92,000		PA Co. Ltd.* (Business Services)		1,096,409
23,200		People Co. Ltd. (Health)		1,651,083
28		Rakuten Inc. (Specialty Retail)		774,496
47,400		Relocation Services Corp. (Real Estate)		3,466,667
80,900		Rock Field Co. Ltd. (Grocery)		4,172,058
199,900		Sato Corp. (Electronics Equipment)		5,023,273
100		Seikoh Giken Co. Ltd. (Electronics Equipment)		64,229
48,100		Sogo Medical Co. Ltd. (Business Services)		771,224
140,600		Sumitomo Real Estate Sales Co. Ltd. (Real Estate)		5,523,807
71,000		Suruga Co. Ltd. (Consumer Durables)		3,361,932
77,900		Taiyo Ink Manufacturing Co. Ltd. (Chemicals)		4,557,862
227,700		Trusco Nakayama (Wholesale)		3,219,612
306,000		Uchida Yoko Co. Ltd. (Wholesale)		1,721,519
2,226		Yoshinoya D&C Co. Ltd. (Restaurants)		3,694,346
				165,910,001
Luxembourg – 1.7%
48,347		Thiel Logistik AG* (Computer Software)		9,004,628
Netherlands – 2.1%
62,505		Beter Bed holding NV (Specialty Retail)		1,459,356
242,523		IFCO Systems NV* (Packaging)		5,081,076
98,831		Samas Groep NV (Business Services)		1,337,993
111,689		Versatel Telecom International NV* (Telecommunications)		3,182,777
				11,061,202
Norway – 1.2%
48,551		EDB Business Partner ASA (Business Services)		566,498
186,204		Tomra Systems ASA (Machinery)		5,534,099
				6,100,597
Portugal – 0.4%
469,578		ParaRede, SGPS* (Information Services)		2,251,087
Singapore – 3.1%
392,440		Datacraft Asia Ltd. (Telecommunications)		3,296,496
738,000		DBS Land Ltd. (Real Estate)		1,192,052
1,506,000		First Capital Corp. Ltd. (Real Estate)		1,461,286
390,000		Overseas Union Bank Ltd. (Banks)		1,971,414
305,000		Sembcorp Logistics Ltd. (Transportation)		1,913,892
1,375,000		SIA Engineering Co.* (Airlines)		1,398,089

Shares		Description		Value
Common Stocks – (continued)
Singapore – (continued)
84,000		Singapore Press Holdings Ltd. (Publishing)		$      1,351,926
297,000		Venture Manufacturing Ltd. (Electrical Equipment)		3,796,409
				16,381,564
Spain – 3.7%
67,895		Aldeasa SA (Specialty Retail)		1,310,955
453,363		Centros Comerciales Pryca SA (Grocery)		6,016,973
153,201		Promotora de Informaciones SA* (Media)		3,665,314
338,790		Sociedad General de Aguas de Barcelona SA (Multi-Industry)		4,240,728
108,413		Sogecable SA* (Broadcasting)		3,897,868
				19,131,838
Sweden – 2.5%
348,642		Europolitan Holdings AB (Telecommunications)		3,711,786
220,207		HiQ International AB (Business Services)		2,496,043
10,158		Proffice AB Series B (Business Services)		362,640
251,803		Sifo Group AB Series B (Business Services)		3,387,676
906,656		Swedish Match AB (Tobacco)		2,929,406
				12,887,551
Switzerland – 3.6%
4,017		Belimo Holding AG (Construction)		1,729,478
20,382		Komax Group* (Machinery)		1,813,553
2,890		Kudelski SA* (Electrical Equipment)		3,865,499
5,145		Lindt & Spruengli AG (Food & Beverage)		2,495,709
14,820		Logitech International SA* (Computer Hardware)		5,010,896
5,662		Societe Generale wD’Affichage (Media)		2,600,230
2,003		Think Tools AG* (Computer Software)		1,067,040
				18,582,405
United Kingdom – 9.3%
1,098,056		Cannons Group PLC (Leisure)		2,309,141
1,909,244		Countrywide Assured Group PLC (Real Estate)		2,798,211
479,769		Future Network PLC* (Media)		5,172,715
322,265		Guardian IT PLC (Business Services)		7,665,071
343,889		ITNET PLC (Business Services)		4,588,666
1,113,216		London Merchant Securities PLC (Real Estate)		3,255,008
714,949		Matalan PLC (Real Estate)		6,385,585
1,070,367		N Brown Group PLC (Specialty Retail)		4,224,732

Shares		Description		Value
Common Stocks – (continued)
United Kingdom – (continued)
30,300		NDS Group PLC ADR* (Internet Software)		$     2,370,975
506,769		Sero Group (Business Services)		4,081,320
719,467		The Berkeley Group PLC (Construction)		5,877,828
				48,729,252
United States – 0.4%
55,000		MIH Ltd.* (Media)		2,055,625
TOTAL COMMON STOCKS
(Cost $435,446,947)				$  469,221,293
Preferred Stocks – 1.9%
Germany – 1.9%
1,643		Porsche AG (Auto)		$      5,659,266
91,260		Rhoen-Klinikum AG Non-Voting (Health)		4,001,384
				9,660,650
TOTAL PREFERRED STOCKS
(Cost $7,890,480)				$      9,660,650
Units		Description		Value
Rights – 0.1%
Switzerland – 0.1%
578		Kudelski SA Rights exp. 09/09/00* (Electrical Equipment)		$          572,359
TOTAL RIGHTS
(Cost $0)				$          572,359
Warrants – 0.0%
France – 0.0%
3,600		IPSOS exp. 06/21/03* (Media)		$            51,135
1,054		Jet Multimedia exp. 12/31/01* (Information Services)		53,334
				104,469
TOTAL WARRANTS
(Cost $0)				$          104,469

Principal Amount		Interest Rate		Maturity Date		Value
Short-Term Obligation – 6.1%
State Street Bank & Trust Euro – Time Deposit
$31,658,000		6.56%		09/01/2000		$  31,658,000
TOTAL SHORT-TERM OBLIGATION
(Cost $31,658,000)						$  31,658,000
TOTAL INVESTMENTS
(Cost $474,995,427)						$511,216,771

*

Non-income producing security.

The percentage shown for each investment category reflects the value of investments in that category as a percentage of total net assets.

Investment Abbreviations:

ADR—American Depositary Receipt

		As a % of total net assets
Common and Preferred Stock Industry Classifications†
Airlines		0.3	%
Apparel		0.3
Auto		2.7
Banks		3.3
Broadcasting		0.7
Business Services		12.5
Chemicals		1.4
Computer Hardware		1.0
Computer Software		3.7
Construction		2.6
Consumer Durables		0.8
Consumer Non-Durables		0.5
Department Store		0.8
Diversified Industrial Manufacturing		0.8
Electrical Equipment		8.2
Electronic Components		0.3
Electronics Equipment		2.1
Energy Resources		4.6
Entertainment		0.9
Food & Beverage		2.0
Grocery		3.2
Health		2.3
Heavy Machinery		0.3
Home Products		1.1
Industrial Equipment		0.6
Industrial Parts		0.3
Information Services		2.1
Insurance		1.2
Internet Software		0.5
Leisure		0.4
Machinery		1.4
Manufacturing		0.4
Media		3.3
Medical Providers		0.9
Mining		0.9
Multi-Industry		1.7
Packaging		1.0
Publishing		1.8
Real Estate		6.9
Restaurants		0.7
Specialty Retail		4.9
Telecommunications		3.3
Tobacco		0.6
Transportation		1.0
Wholesale		1.6
TOTAL COMMON AND PREFERRED STOCK		91.9	%

†

Industry concentrations greater than one tenth of one percent are disclosed.

Assets:
Investment in securities, at value (identified cost $474,995,427)		$511,216,771
Cash, at value		249,855
Receivables:
Fund shares sold		9,055,359
Variation margin (a)		2,212,513
Investment securities sold, at value		1,032,274
Reimbursement from investment adviser		308,889
Dividends and interest, at value		284,897
Deferred organization expenses, net		9,110
Other assets, at value		109,272
Total assets		524,478,940
Liabilities:
Payables:
Investment securities purchased, at value		2,336,896
Amounts owed to affiliates		675,138
Accrued expenses and other liabilities, at value		193,012
Total liabilities		3,205,046
Net Assets:
Paid-in capital		455,064,418
Accumulated net realized gain from investment, futures and foreign currency related transactions		29,485,884
Net unrealized gain on investments, futures and translation of assets and liabilities denominated in foreign currencies		36,723,592
NET ASSETS		$521,273,894
Net asset value, offering and redemption price per share: (b)
Class A		$16.12
Class B		$15.98
Class C		$15.97
Institutional		$16.37
Service		$16.16
Shares outstanding:
Class A		20,331,035
Class B		176,944
Class C		229,926
Institutional		11,429,500
Service		156
Total shares of beneficial interest outstanding, $.001 par value (unlimited number of shares authorized)		32,167,561

(a)

Includes approximately $1,013,000 relating to initial margin requirements for futures transactions.

(b)

Maximum public offering price per share (NAV per share multiplied by 1.0582) for Class A Shares is $17.06. At redemption, Class B and Class C Shares may be subject to a contingent deferred sales charge, assessed on the amount equal to the lesser of the current net asset value or the original purchase price of the shares.

Investment income:
Dividends (a)		$  2,382,282
Interest		1,300,982
Total income		3,683,264
Expenses:
Management fees		3,541,196
Distribution and Service fees (b)		922,587
Custodian fees		685,097
Transfer Agent fees (c)		388,659
Registration fees		135,615
Professional fees		45,155
Trustee fees		8,900
Amortization of deferred organization expenses		2,284
Other		112,627
Total expenses		5,842,120
Less — expense reductions		(505,703	)
Net expenses		5,336,417
NET INVESTMENT LOSS		(1,653,153	)
Realized and unrealized gain (loss) on investment, futures and foreign currency related transactions:
Net realized gain (loss) from:
Investment transactions		34,584,583
Futures transactions		(245,020	)
Foreign currency related transactions		337,440
Net change in unrealized gain (loss) on:
Investments		16,371,022
Futures		477,017
Translation of assets and liabilities denominated in foreign currencies		1,124
Net realized and unrealized gain on investment, futures and foreign currency related transactions		51,526,166
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		$49,873,013

(a)

Foreign taxes withheld on dividends were $357,765.

(b)

Class A, Class B and Class C had Distribution and Service fees of $881,543, $17,389 and $23,655, respectively.

(c)

Class A, Class B, Class C, Institutional Class and Service Class had Transfer Agent fees of $334,985, $3,304, $4,495, $45,874 and $1, respectively.

		For the Year Ended August 31, 2000			For the Seven Months Ended August 31, 1999			For the Period Ended January 31, 1999 (a)
From operations:
Net investment loss		$    (1,653,153	)		$      (173,328	)		$    (147,894	)
Net realized gain from investment, futures and foreign currency related transactions		34,677,003			3,660,821			232,160
Net change in unrealized gain on investments, futures and translation of assets and liabilities denominated in foreign currencies		16,849,163			17,316,915			2,557,514
Net increase in net assets resulting from operations		49,873,013			20,804,408			2,641,780
Distributions to shareholders:
In excess of net investment income
Class A Shares		—			—			—
Class B Shares		—			—			—
Class C Shares		—			—			—
Institutional Shares		—			(3,921	)		(21,659	)
Service Shares		—			—			—
From net realized gains
Class A Shares		(3,818,699	)		—			—
Class B Shares		(23,470	)		—			—
Class C Shares		(31,640	)		—			—
Institutional Shares		(3,219,751	)		—			—
Service Shares		(79	)		—			—
Total distributions to shareholders		(7,093,639	)		(3,921	)		(21,659	)
From share transactions:
Proceeds from sales of shares		421,373,628			58,890,454			81,743,079
Reinvestment of dividends and distributions		4,607,275			2,349			8,522
Cost of shares repurchased		(83,439,939	)		(14,124,187	)		(13,987,269	)
Net increase in net assets resulting from share transactions		342,540,964			44,768,616			67,764,332
TOTAL INCREASE		385,320,338			65,569,103			70,384,453
Net assets:
Beginning of period		135,953,556			70,384,453			—
End of period		$521,273,894			$135,953,556			$70,384,453
Accumulated net investment loss		$                —			$                —			$    (106,697	)

(a)

Commencement date of operations was May 1, 1998 for all share classes.

1.  ORGANIZATION

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 International Small Cap Fund (the “Fund”). The Fund is a diversified portfolio offering five classes of shares — Class A, Class B, Class C, Institutional and Service.

2.  SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of the significant accounting policies consistently followed by the Fund. 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. Actual results could differ from those estimates. Effective for fiscal year 1999, the Board of Trustees approved a change in the fiscal year end of the Fund from January 31 to August 31. Accordingly, the Statements of Changes in Net Assets, Summary of Share Transactions, and Financial Highlights of the Fund are included for the seven months ended August 31, 1999 and the year ended January 31, 1999.

A.  Investment Valuation — Investments in securities traded on a U.S. or foreign securities exchange or the NASDAQ system are valued daily at their last sale price on the principal exchange on which they are traded. If no sale occurs, securities are valued at the last bid price. Debt securities are valued at prices supplied by independent pricing services, broker/dealer-supplied valuations or matrix pricing systems. Unlisted equity and debt securities for which market quotations are available are valued at the last sale price on valuation date, or if no sale occurs at the last bid price. Short-term debt obligations maturing in sixty days or less are valued at amortized cost, which approximates market value. Securities for which quotations are not readily available are valued at fair value using methods approved by the Board of Trustees of the Trust.

B.  Security Transactions and Investment Income — Security transactions are recorded as of the trade date. Realized gains and losses on sales of portfolio securities are calculated using the identified-cost basis. Dividend income is recorded on the ex-dividend date, net of foreign withholding taxes where applicable. Dividends for which the Fund has the choice to receive either cash or stock are recognized as investment income in an amount equal to the cash dividend. Interest income is recorded on the basis of interest accrued, premium amortized and discount earned.

Net investment income (other than class specific expenses) and unrealized and realized gains or losses are allocated daily to each class of the Fund based upon the relative proportion of net assets.

C.  Federal Taxes — It is the Fund’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute each year substantially all of its investment company taxable income and capital gains to its shareholders. Accordingly, no federal tax provision is required. Income and capital gains distributions, if any, are declared and paid annually.

The characterization of distributions to shareholders for financial reporting purposes is determined in accordance with income tax rules. Therefore, the source of the Fund’s distributions may be shown in the accompanying financial statements as either from or in excess of net investment income or net realized gain on investment transactions, or from paid-in capital, depending on the type of book/tax differences that may exist.

At August 31, 2000, the aggregate cost of portfolio securities for federal income tax purposes is $476,252,872. Accordingly, the gross unrealized gain on investments was $63,977,182 and the gross unrealized loss on investments was $29,013,283 resulting in a net unrealized gain of $34,963,899.

D.  Expenses — Expenses incurred by the Trust which do not specifically relate to an individual Fund of the Trust are allocated to the Funds based on a straight-line or pro rata basis depending upon the nature of the expense.

2.  SIGNIFICANT ACCOUNTING POLICIES (continued)

Class A, Class B and Class C Shares bear all expenses and fees relating to their respective Distribution and Service Plans. Shareholders of Service Shares bear all expenses and fees paid to service organizations. Each class of shares separately bears its respective class-specific Transfer Agency fees.

E.  Deferred Organization Expenses —  Organization-related costs are amortized on a straight-line basis over a period of five years.

F.  Foreign Currency Translations — The books and records of the Fund are maintained in U.S. dollars. Amounts denominated in foreign currencies are translated into U.S. dollars on the following basis: (i) investment valuations, foreign currency and other assets and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based on current exchange rates; (ii) purchases and sales of foreign investments, income and expenses are converted into U.S. dollars based on currency exchange rates prevailing on the respective dates of such transactions.

Net realized and unrealized gain (loss) on foreign currency transactions will represent: (i) foreign exchange gains and losses from the sale and holdings of foreign currencies; (ii) currency gains and losses between trade date and settlement date on investment securities transactions and forward exchange contracts; and (iii) gains and losses from the difference between amounts of dividends, interest and foreign withholding taxes recorded and the amounts actually received.

G.  Segregation Transactions — The Fund may enter into certain derivative transactions to seek to increase total return. Forward foreign currency exchange contracts, futures contracts, written options, when-issued securities and forward commitments represent examples of such transactions. As a result of entering into those transactions, the Fund is required to segregate liquid assets on the accounting records equal to or greater than the market value of the corresponding transactions.

3.  AGREEMENTS

Pursuant to the Investment Management Agreement (the “Agreement”), Goldman Sachs Asset Management International (“ GSAMI”), an affiliate of Goldman, Sachs & Co. (“Goldman Sachs”), serves as the investment adviser to the Fund. Under the Agreement, GSAMI, subject to the general supervision of the Trust’s Board of Trustees, manages the Fund’s portfolio. As compensation for the services rendered under the Agreement, the assumption of the expenses related thereto and administering the Fund’s business affairs, including providing facilities, GSAMI is entitled to a fee, computed daily and payable monthly, at an annual rate equal to 1.20% of the average daily net assets of the Fund.

The investment adviser has voluntarily agreed to limit certain “Other Expenses” (excluding Management fees, Distribution and Service fees, Transfer Agent fees, taxes, interest, brokerage, litigation, Service Share fees, indemnification costs and other extraordinary expenses) to the extent such expenses exceed, on an annual basis, 0.16% of the average daily net assets of the Fund. For the year ended August 31, 2000, the adviser reimbursed approximately $501,000. In addition, the Fund has entered into certain offset arrangements with the custodian resulting in a reduction in the Fund’s expenses. For the year ended August 31, 2000, Custody fees were reduced by approximately $5,000.

The Trust, on behalf of the Fund, has adopted Distribution and Service Plans. Under the Distribution and Service Plans, Goldman Sachs and/or authorized dealers are entitled to a monthly fee from the Fund for distribution and shareholder maintenance services equal, on an annual basis, to 0.50%, 1.00% and 1.00% of the Fund’s average daily net assets attributable to Class A, Class B and Class C Shares, respectively.

Goldman Sachs serves as the distributor of shares of the Fund pursuant to a Distribution Agreement. Goldman Sachs may receive a portion of the Class A sales load and Class B and Class C contingent deferred sales charges and has advised the Fund that it retained approximately $2,168,000 for the year ended August 31, 2000.

3.  AGREEMENTS (continued)

Goldman Sachs also serves as the transfer agent of the Fund for a fee. The fees charged for such transfer agency services are calculated daily and payable monthly at an annual rate as follows: 0.19% of average daily net assets for Class A, Class B and Class C Shares and 0.04% of average daily net assets for Institutional and Service Shares.

The Trust, on behalf of the Fund, has adopted a Service Plan. This Plan allows for Service Shares to compensate service organizations for providing varying levels of account administration and shareholder liaison services to their customers who are beneficial owners of such shares. The Service Plan provides for compensation to the service organizations in an amount up to 0.50% (on an annualized basis), of the average daily net asset value of the Service Shares.

As of August 31, 2000, the amounts owed to affiliates were approximately $487,000, $133,000 and $55,000 for Management, Distribution and Service, and Transfer Agent fees, respectively.

4.  PORTFOLIO SECURITIES TRANSACTIONS

Purchases and proceeds of sales or maturities of securities (excluding short-term investments and futures) for the year ended August 31, 2000, were $513,837,934 and $202,918,134, respectively. For the year ended August 31, 2000, Goldman Sachs earned approximately $3,000 of brokerage commissions from portfolio transactions, including futures transactions executed on behalf of the Fund.

Forward Foreign Currency Exchange Contracts — The Fund may enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date as a hedge or cross-hedge against either specific transactions or portfolio positions. The Fund may also purchase and sell such contracts to seek to increase total return. All commitments are “marked-to-market” daily at the applicable translation rates and any resulting unrealized gains or losses are recorded in the Fund’s financial statements. The Fund realizes gains or losses at the time a forward contract is offset by entry into a closing transaction or extinguished by delivery of the currency. Risks may arise upon entering these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. At August 31, 2000, the Fund had no open forward foreign exchange contracts.

Futures Contracts — The Fund may enter into futures transactions to hedge against changes in interest rates, securities prices, currency exchange rates or to seek to increase total return. Upon entering into a futures contract, the Fund is required to deposit with a broker or the Fund’s custodian bank, an amount of cash or securities equal to the minimum “initial margin” requirement of the associated futures exchange. Subsequent payments for futures contracts (“variation margin”) are paid or received by the Fund, depending on the fluctuations in the value of the contracts, and are recorded for financial reporting purposes as unrealized gains or losses. When contracts are closed, the Fund realizes a gain or loss which is reported in the Statement of Operations.

The use of futures contracts involve, to varying degrees, elements of market risk which may exceed the amounts recognized in the Statement of Assets and Liabilities. Changes in the value of the futures contract may not directly correlate with changes in the value of the underlying securities. This risk may decrease the effectiveness of the Fund’s hedging strategies and potentially result in a loss.

At August 31, 2000 the following futures contracts were open as follows:

Type		Number of Contracts Long		Settlement Month		Market Value		Unrealized Gain
FTSE 100		199		Sep-00		$19,312,875		$504,809
								$504,809

5.  LINE OF CREDIT FACILITY

Effective May 31, 2000, the Fund participates in a $350,000,000 committed, unsecured revolving line of credit facility. Prior thereto, the Fund participated in a $250,000,000 uncommitted and a $250,000,000 committed, unsecured revolving line of credit facility. Under the most restrictive arrangement, the Fund must own securities having a market value in excess of 400% of the total bank borrowings. This facility is to be used solely for temporary or emergency purposes. The interest rate on borrowings is based on the Federal Funds rate. The committed facility also requires a fee to be paid by the Fund based on the amount of the commitment which has not been utilized. During the year ended August 31, 2000, the Fund did not have any borrowings under any of these facilities.

6.  CHANGE IN INDEPENDENT ACCOUNTANTS

On October 26, 1999 the Board of Trustees of the Fund, upon the recommendation of the Board’s audit committee, determined not to retain Arthur Andersen LLP and approved a change of the Fund’s independent accountants to PricewaterhouseCoopers LLP. For the period ended August 31, 1999 and the fiscal year ended January 31, 1999, Arthur Andersen LLP’s audit reports contained no adverse opinion or disclaimer of opinion; nor were their reports qualified or modified as to uncertainty, audit scope, or accounting principles. Further, there were no disagreements between the Fund and Arthur Andersen LLP on accounting principles or practices, financial statement disclosure or audit scope or procedure, which if not resolved to the satisfaction of Arthur Andersen LLP would have caused them to make reference to the disagreement in their report.

7.  CERTAIN RECLASSIFICATIONS

In accordance with statement of position 93-2, the Fund has reclassified $1,650,869 and $2,284 from accumulated net investment gain and paid-in capital, respectively to accumulated net investment loss. This reclassification has no impact on the net asset value of the Fund and is designed to present the Fund’s capital accounts on a tax basis. Reclassifications result primarily from the difference in the tax treatment of foreign currency, net operating losses and organization costs.

8.  SUMMARY OF SHARE TRANSACTIONS

Share activity for the:

		For the Year Ended August 31, 2000						For the Seven Months Ended August 31, 1999						For the Period Ended January 31, 1999 (a)
		Shares			Dollars			Shares			Dollars			Shares			Dollars
Class A Shares
Shares sold		19,003,047			$297,708,611			2,607,810			$32,403,673			3,789,828			$39,461,070
Reinvestment of dividends and distributions		157,580			2,229,751			—			—			—			—
Shares repurchased		(4,075,523	)		(64,277,773	)		(470,755	)		(5,480,465	)		(680,952	)		(6,496,553	)
		15,085,104			235,660,589			2,137,055			26,923,208			3,108,876			32,964,517
Class B Shares
Shares sold		204,200			3,281,798			6,837			79,235			24,738			250,752
Reinvestment of dividends and distributions		1,259			17,723			—			—			—			—
Shares repurchased		(51,476	)		(813,483	)		(3,975	)		(41,451	)		(4,639	)		(43,306	)
		153,983			2,486,038			2,862			37,784			20,099			207,446
Class C Shares
Shares sold		654,778			10,258,693			21,336			268,279			19,740			196,453
Reinvestment of dividends and distributions		2,170			30,550			—			—			—			—
Shares repurchased		(458,758	)		(7,319,550	)		(6,059	)		(68,915	)		(3,281	)		(32,610	)
		198,190			2,969,693			15,277			199,364			16,459			163,843
Institutional Shares
Shares sold		7,042,187			110,124,526			2,231,140			26,139,267			4,172,165			41,833,210
Reinvestment of dividends and distributions		162,879			2,329,172			183			2,349			851			8,522
Shares repurchased		(703,368	)		(11,028,965	)		(773,017	)		(8,533,356	)		(703,520	)		(7,414,800	)
		6,501,698			101,424,733			1,458,306			17,608,260			3,469,496			34,426,932
Service Shares
Shares sold		—			—			—			—			161			1,594
Reinvestment of dividends and distributions		6			79			—			—			—			—
Shares repurchased		(11	)		(168	)		—			—			—			—
		(5	)		(89	)		—			—			161			1,594
NET INCREASE		21,938,970			$342,540,964			3,613,500			$44,768,616			6,615,091			$67,764,332

(a)

The Fund commenced operations on May 1, 1998 for all share classes.

Goldman Sachs International Small Cap Fund — Tax Information (unaudited)

For the distribution paid during the year ended August 31, 2000, the total amount of income received by the International Small Cap Equity Fund from sources within foreign countries and possessions of the United States was $0.0403 per share all of which is attributable to qualified passive income. The total amount of taxes paid by the Fund to such countries was $0.0060 per share. A separate notice containing the country by country components of these totals has been previously mailed to the shareholders.

				Income from investment operations							Distributions to shareholders
		Net asset value, beginning of period		Net investment loss			Net realized and unrealized gain		Total income from investment operations		In excess of net investment income			From net realized gains			Total distributions
FOR THE YEAR ENDED AUGUST 31,
2000 - Class A Shares		$13.24		$(0.12	) (c)		$3.52		$3.40		$   —			$(0.52	)		$(0.52	)
2000 - Class B Shares		13.19		(0.18	) (c)		3.49		3.31		—			(0.52	)		(0.52	)
2000 - Class C Shares		13.19		(0.19	) (c)		3.49		3.30		—			(0.52	)		(0.52	)
2000 - Institutional Shares		13.35		(0.03	) (c)		3.57		3.54		—			(0.52	)		(0.52	)
2000 - Service Shares		13.24		(0.10	) (c)		3.54		3.44		—			(0.52	)		(0.52	)
FOR THE SEVEN-MONTH PERIOD ENDED AUGUST 31,
1999 - Class A Shares		10.62		(0.03	)		2.65		2.62		—			—			—
1999 - Class B Shares		10.61		(0.08	) (c)		2.66		2.58		—			—			—
1999 - Class C Shares		10.61		(0.08	) (c)		2.66		2.58		—			—			—
1999 - Institutional Shares		10.66		—			2.69		2.69		—			—			—
1999 - Service Shares		10.61		(0.02	)		2.65		2.63		—			—			—
FOR THE PERIOD ENDED JANUARY 31,
1999 - Class A Shares (commenced May 1, 1998)		10.00		(0.04	)		0.66		0.62		—			—			—
1999 - Class B Shares (commenced May 1, 1998)		10.00		(0.10	)		0.71		0.61		—			—			—
1999 - Class C Shares (commenced May 1, 1998)		10.00		(0.06	)		0.67		0.61		—			—			—
1999 - Institutional Shares (commenced May 1, 1998)		10.00		—			0.67		0.67		(0.01	)		—			(0.01	)
1999 - Service Shares (commenced May 1, 1998)		10.00		(0.02	)		0.63		0.61		—			—			—

(a)

Assumes investment at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, a complete redemption of the investment at the net asset value at the end of the period and no sales or redemption charges. Total return would be reduced if a sales or redemption charge were taken into account. Total returns for periods less than one full year are not annualized.

(b)

Annualized.

(c)

Calculated based on the average shares outstanding methodology.

													Ratios assuming no expense reductions
Net asset value, end of period		Total return (a)			Net assets at end of period (in 000s)		Ratio of net expenses to average net assets			Ratio of net investment loss to average net assets			Ratio of expenses to average net assets			Ratio of net investment loss to average net assets			Portfolio turnover rate
$16.12		26.26	%		$327,697		2.05	%		(0.79	)%		2.22	%		(0.96	)%		73.43	%
15.98		25.66			2,827		2.55			(1.16	)		2.72			(1.33	)		73.43
15.97		25.58			3,672		2.55			(1.23	)		2.72			(1.40	)		73.43
16.37		27.12			187,075		1.40			(0.19	)		1.57			(0.36	)		73.43
16.16		26.57			3		1.90			(0.63	)		2.07			(0.80	)		73.43
13.24		24.67			69,458		2.05	(b)		(0.68	) (b)		2.42	(b)		(1.05	) (b)		58.81
13.19		24.32			303		2.55	(b)		(1.16	) (b)		2.92	(b)		(1.53	) (b)		58.81
13.19		24.32			419		2.55	(b)		(1.21	) (b)		2.92	(b)		(1.58	) (b)		58.81
13.35		25.24			65,772		1.40	(b)		(0.05	) (b)		1.77	(b)		(0.42	) (b)		58.81
13.24		24.79			2		1.90	(b)		(0.35	) (b)		2.27	(b)		(0.72	) (b)		58.81
10.62		6.20			33,002		2.02	(b)		(1.03	) (b)		3.60	(b)		(2.61	) (b)		96.11
10.61		6.10			213		2.51	(b)		(1.30	) (b)		4.09	(b)		(2.88	) (b)		96.11
10.61		6.10			175		2.51	(b)		(1.45	) (b)		4.09	(b)		(3.03	) (b)		96.11
10.66		6.67			36,992		1.40	(b)		(0.19	) (b)		2.98	(b)		(1.77	) (b)		96.11
10.61		6.10			2		1.90	(b)		(0.26	) (b)		3.48	(b)		(1.84	) (b)		96.11

To the Shareholders and Board of Trustees of Goldman Sachs Trust — International Small Cap Fund:

In our opinion, the accompanying statement of assets and liabilities, including the statement of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Goldman Sachs International Small Cap Fund (“the Fund”), one of the portfolios constituting Goldman Sachs Trust, at August 31, 2000, the results of its operations, the changes in its net assets and the financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2000 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion. The statements of changes in net assets and financial highlights of the Fund for the periods ended August 31, 1999 and January 31, 1999 were audited by other independent accountants whose report dated October 8, 1999 expressed an unqualified opinion thereon.

PricewaterhouseCoopers LLP

Boston, Massachusetts

October 23, 2000

GOLDMAN SACHS FUND PROFILE

Goldman Sachs

International Small Cap Fund

An Investment Idea for the Long Term

History has shown that a long-term plan that includes international stocks can help provide greater protection against market volatility over time than a portfolio that invests only in U.S. stocks.

Goldman Sachs International Small Cap Fund provides investors access to the benefits associated with international investing. The Fund seeks long-term capital growth, primarily through equity securities of smaller capitalization companies located outside of the United States.

Target Your Needs

The Goldman Sachs International Small Cap Fund has a distinct investment objective and a defined place on the risk/return spectrum. As your investment objectives change, you can exchange shares within Goldman Sachs Funds without any additional charge.* (Please note: in general, greater returns are associated with greater risk.)

For More Information

To learn more about the Goldman Sachs International Small Cap Fund and other Goldman Sachs Funds, call your investment professional today.

*The exchange privilege is subject to termination and its terms are subject to change.