<PAGE>
Goldman Sachs Funds
GROWTH OPPORTUNITIES FUND Semiannual Report February 29, 2000
Long-term capital growth
potential from a diversified
portfolio of equity securities.
[GRAPHIC]
[LOGO OF GOLDMAN SACHS]
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
Market Overview
Dear Shareholder,
During the period under review, the Federal Reserve Board attempted to
subdue the strong U.S. economy and ward off a rise in inflation. In the
financial markets, technology stocks soared, while most other sectors
languished.
. A Record-Breaking Economic Expansion and the Prospect for
Higher Interest Rates -- Despite repeated attempts by the
Federal Reserve Board to slow economic growth, the economy
continued to grow at a rapid pace during the reporting
period. GDP increased 6.9% during the fourth quarter of
1999, and the economic expansion hit a record nine years in
February 2000. However, the Federal Reserve was not in a
celebratory mood, as it remained focused on cooling the
economy and preempting inflation. Among the Federal
Reserve's major concerns were the stock market driven
"wealth effect" which led to unrestrained consumer spending,
low unemployment resulting in increased wage pressures, and
significantly higher oil prices.
. A Wide Disparity in Returns and Increased Volatility --
During 1999, the technology-rich NASDAQ index registered an
unprecedented 85.6% return, with more than half of its gain
occurring after the index crossed 3000 on November 3rd. As
the year 2000 began, it seemed unlikely that the trend could
continue. But, while most of the stock market has fallen
under the strain of rising interest rates, technology stocks
have continued to surge ahead. By early March 2000, the
NASDAQ index had crossed 5000, and investors continued to
embrace technology stocks at the expense of most other
market sectors. Elsewhere, after many years of relative
underperformance, small-cap stocks performed well versus
their larger-cap counterparts -- fueled by smaller
technology firms. Overall, the equity markets have been
quite volatile, as wide swings in day-to-day results have
become the norm. This could continue in the months ahead,
due largely to the uncertainty regarding the economy,
interest rates and corporate profits.
. Market Outlook: Inflation Holds the Key -- Looking ahead, we
believe that inflation will be the key macroeconomic issue
affecting the U.S. financial markets. While the best news on
inflation has likely passed, global excess capacity and the
growth of e-commerce should help to prevent a sharp
increase. However, there are several factors that could lead
to an unhealthy rise in inflation. First, the U.S. economy
could continue to be more robust than expected, putting
additional pressure on an already tight labor market.
Second, the tight labor market could cause inflation to rise
even if the economy slows. Third, the increase in economic
growth outside the U.S. could cause the excess supply of
worldwide resources to fall. This could lead to higher
import prices and force U.S. companies to raise prices.
Based on these uncertainties and the increase in short-term
market volatility, we encourage you to work closely with
your financial advisor to maintain a long-term focus on your
investment portfolio. As always, we appreciate your support
and we look forward to serving your investment needs in the
years to come.
Sincerely,
/s/ David B. Ford
- ----------------
. NOT FDIC David B. Ford
INSURED Co-Head, Goldman Sachs Asset Management
. May Lose Value /s/ David W. Blood
. No Bank David W. Blood
Guarantee Co-Head, Goldman Sachs Asset Management
- ----------------
March 13, 2000
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
Fund Basics
as of February 29, 2000
Assets Under Management
$71.5 Million
Number of Holdings
96
NASDAQ SYMBOLS
Class A Shares
GGOAX
Class B Shares
GGOBX
Class C Shares
GGOCX
Institutional Shares
GGOIX
Service Shares
GGOSX
- --------------------------------------------------------------------------------
PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
Fund Total Return S&P MidCap
August 31,1999-February 29, 2000 (without sales charge)1 400 Index2
- --------------------------------------------------------------------------------
Class A 66.73% 18.09%
Class B 66.10 18.09
Class C 66.24 18.09
Institutional 67.15 18.09
Service 66.67 18.09
- --------------------------------------------------------------------------------
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 S&P MidCap 400 Index (with dividends reinvested) figures do
not reflect any fees or expenses. In addition, investors cannot invest
directly in the Index.
- --------------------------------------------------------------------------------
STANDARDIZED TOTAL RETURNS3
- --------------------------------------------------------------------------------
For the period ended
12/31/99 Class A Class B Class C Institutional Service
- --------------------------------------------------------------------------------
Last 6 months 37.48% 40.95% 43.90% 45.73% 45.31%
Since Inception 45.80% 49.57% 52.44% 54.48% 54.03%
(5/24/99)
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS AS OF 2/29/00
- --------------------------------------------------------------------------------
% of Total
Holding Net Assets Line of Business
- --------------------------------------------------------------------------------
VERITAS Software Corp. 4.0% Computer Software
Hooper Holmes, Inc. 2.0 Medical Providers
Siebel Systems, Inc. 1.7 Computer Software
Convergys Corp. 1.7 Information Services
Valassis Communications, Inc. 1.6 Information Services
The Limited, Inc. 1.6 Clothing
Crown Castle International Corp. 1.6 Wireless
Hartford Life, Inc. 1.6 Life Insurance
Symbol Technologies, Inc. 1.6 Computer Hardware
Keebler Foods Co. 1.5 Food & Beverage
- --------------------------------------------------------------------------------
The top 10 holdings may not be representative of the Fund's future investments.
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.
1
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
Performance Overview
Dear Shareholder,
We are pleased to report on the performance of the Goldman Sachs
Growth Opportunities Fund for the six month period that ended February
29, 2000.
Performance Review
Over the six month period ended February 29, 2000, the Fund's
Class A, B, C, Institutional and Service share classes generated
cumulative total returns, without sales charges, of 66.73%,
66.10%, 66.24%, 67.15% and 66.67%, respectively. The Fund handily
outperformed its benchmark, the S&P MidCap 400 Index, which
generated a cumulative total return of 18.09%.
Portfolio Composition
The Fund invests primarily in medium-sized growth companies with
market capitalizations between $1 and $10 billion. We seek
companies that generally fall into these categories: (1) high
growth companies with dominant market share in a niche industry,
(2) companies that are undergoing fundamental improvements in
their business or long-term growth rates, (3)
under-followed/under-recognized growth companies whose long-term
prospects are under-appreciated by Wall Street analysts. We
strive to purchase these companies at reasonable valuations, in
order to capture the full benefits of their growth. During the
reporting period this strategy produced extremely strong relative
and absolute returns.
Portfolio Highlights
. Intertrust Technologies Corp. -- Our participation in the IPO of
Intertrust was extremely rewarding for the Fund. Intertrust
creates operating systems for the digital economy by providing
software and services for managing rights to music, business
information, movies and other digital-based content on the
Internet. We will continue to search for selective IPOs that we
believe satisfy our criteria for strategically advantaged mid-cap
companies.
. Westwood One, Inc. -- Westwood One is a leading producer and
distributor of national radio programs, and is the nation's
largest radio network. The firm's unique strategy of providing
radio affiliates with programming content has enabled it to
develop a dominant market franchise, maintaining a 50% market
share in radio networks.
. Symbol Technologies, Inc. -- Symbol is the leader for creating
the global market for laser bar code scanning. It is also
involved in applications for mobile computing and wireless local
area network technologies. The firm continues to develop
strategic alliances with top technology companies, including
Intel, Qualcomm, and 3Com.
2
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
Portfolio Outlook
While we neither make nor rely on economic forecasts to make investment
decisions, we are generally bullish on the U.S. economy. Over the last decade,
global communication has increased, resulting from significant technological
advances as well as a generally peaceful world political environment. We believe
that this trend, combined with favorable demographic trends, will benefit U.S.
companies over the long term. More fundamentally, though, we continue to focus
on the core business characteristics which provide a foundation for long-term
growth, such as strength of franchise, quality of management, and free cash
flow, along with favorable demographic trends. We believe that the enduring
competitive advantage of the companies we own -- based on the criteria mentioned
above -- will withstand even an uncertain market environment.
Goldman Sachs Equity Investment Team
New York
February 29, 2000
3
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES 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?
1
Resources and Relationships
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.
2
In-Depth Research
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.
3
Risk Management
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
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
Performance Summary
February 29, 2000 (Unaudited)
The following graph shows the value as of February 29, 2000, of a $10,000 in-
vestment made on May 24, 1999 (commencement of operations) in Class A Shares
(maximum sales charge of 5.5%), Class B Shares (applicable contingent de-
ferred sales charges of 5.0% declining to 0% after six years), Class C Shares
(applicable contingent deferred sales charge of 1.0% if redeemed within
twelve months), Institutional and Service Shares (at NAV) of the Goldman
Sachs Growth Opportunities Fund. For comparative purposes, the performance of
the Fund's benchmark, the Standard and Poor's Midcap 400 Index with dividend
reinvestment ("S&P Midcap 400") is shown. This performance data represents
past performance and should not be considered indicative of future perfor-
mance which will fluctuate with changes in market conditions. These perfor-
mance fluctuations will cause an investor's shares, when redeemed, to be
worth more or less than their original cost.
Growth Opportunities Fund's Lifetime Performance
Growth of a $10,000 Investment, Distributions reinvested May 24, 1999 to Feb-
ruary 29, 2000.
[GRAPH]
<TABLE>
<CAPTION>
S&P 400
with Income
Monthly Return Class A Class B Class C Institutional Service
<S> <C> <C> <C> <C> <C> <C>
5/24/99 10,000 9,450 10,000 10,000 10,000 10,000
5/99 10,109 9,461 10,010 10,010 10,010 10,010
6/99 10,441 10,019 10,590 10,590 10,600 10,600
7/99 10,554 9,991 10,630 10,550 10,570 10,570
8/99 10,303 9,575 10,180 10,100 10,130 10,120
9/99 9,748 10,066 10,690 10,610 10,660 10,640
10/99 9,692 11,323 12,030 11,930 12,000 11,970
11/99 10,143 13,006 13,800 13,700 13,780 13,750
12/99 11,246 14,580 15,465 15,346 15,448 15,403
1/00 12,117 13,984 14,825 14,726 14,827 14,783
2/00 13,970 15,963 16,401 16,689 16,932 16,867
</TABLE>
<TABLE>
<CAPTION>
Aggregate Total Return through
February 29, 2000 Since Inception(a) Six Months(a)
<S> <C> <C>
Class A (commenced May 24, 1999)
Excluding sales charges 68.89% 66.73%
Including sales charges 59.63% 57.55%
-------------------------------------------------------------------------
Class B (commenced May 24, 1999)
Excluding contingent deferred sales
charges 69.09% 66.10%
Including contingent deferred sales
charges 64.01% 61.02%
-------------------------------------------------------------------------
Class C (commenced May 24, 1999)
Excluding contingent deferred sales
charges 67.90% 66.24%
Including contingent deferred sales
charges 66.89% 65.22%
-------------------------------------------------------------------------
Institutional Class (commenced May 24,
1999) 69.32% 67.15%
-------------------------------------------------------------------------
Service Class (commenced May 24, 1999) 68.67% 66.67%
-------------------------------------------------------------------------
</TABLE>
(a) Not annualized.
5
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
Statement of Investments
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
Common Stocks - 88.6%
<C> <S> <C>
Banks - 2.2%
16,715 Charter One Financial, Inc. $ 263,261
28,700 National Commerce Bancorp 487,900
10,000 Silicon Valley Bancshares* 792,500
-----------
1,543,661
---------------------------------------------------------
Clothing - 3.2%
10,900 Payless ShoeSource, Inc.* 430,550
34,400 The Limited, Inc. 1,169,600
30,000 Too, Inc.* 720,000
-----------
2,320,150
---------------------------------------------------------
Computer Hardware - 1.6%
11,700 Symbol Technologies, Inc. 1,112,962
---------------------------------------------------------
Computer Software - 10.8%
5,000 Caminus Corp.* 118,125
3,400 CheckFree Holdings Corp.* 298,988
2,800 E.piphany, Inc.* 615,650
13,700 Intuit, Inc.* 719,250
8,500 SI Corp.* 855,313
9,000 Siebel Systems, Inc.* 1,248,187
14,400 VERITAS Software Corp.* 2,849,400
2,500 webMethods, Inc.* 770,156
6,600 Witness Systems, Inc.* 242,550
-----------
7,717,619
---------------------------------------------------------
Construction - 1.8%
20,800 Martin Marietta Materials 738,400
31,500 Masco Corp. 563,062
-----------
1,301,462
---------------------------------------------------------
Consumer Durables - 2.4%
45,800 Ethan Allen Interiors, Inc. 1,067,712
15,400 Grainger W.W., Inc. 659,313
-----------
1,727,025
---------------------------------------------------------
Drugs - 4.4%
15,300 BioChem Pharm, Inc.* 404,494
25,800 Cambrex Corp. 1,035,225
2,700 MedImmune, Inc.* 535,950
2,000 Millennium Pharmaceutical* 520,250
29,000 Mylan Labs, Inc. 667,000
-----------
3,162,919
---------------------------------------------------------
Electrical Equipment - 4.8%
15,200 American Tower Corp.* 748,600
15,600 Millipore Corp. 833,625
10,500 Molex, Inc. 586,688
5,300 Sanmina Corp.* 620,431
5,300 Sawtek, Inc.* 254,400
7,500 St Assembly Test Services Ltd. ADR* 360,000
-----------
3,403,744
---------------------------------------------------------
Electrical Utilities - 1.8%
22,288 Dynegy, Inc. 1,044,750
3,100 The AES Corp.* 259,819
-----------
1,304,569
---------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
Common Stocks - (continued)
<C> <S> <C>
Energy Resources - 0.8%
28,100 Louis Dreyfus Natural Gas Corp.* $ 579,563
----------------------------------------------------------
Financial Services - 3.1%
31,300 Allied Capital Corp. 543,838
40,600 Cendant Corp.* 723,187
25,700 Comdisco, Inc. 987,844
----------
2,254,869
----------------------------------------------------------
Food & Beverage - 1.5%
43,400 Keebler Foods Co.* 1,101,275
----------------------------------------------------------
Hotels - 1.5%
54,400 Harrah's Entertainment, Inc.* 1,040,400
----------------------------------------------------------
Industrial Parts - 1.2%
23,900 American Standard Cos., Inc.* 833,513
----------------------------------------------------------
Industrial Services - 2.7%
14,500 Cintas Corp. 579,094
53,300 ITT Educational Services, Inc.* 639,600
27,464 Pittston Brinks Group 490,919
4,700 Robert Half International, Inc.* 198,575
----------
1,908,188
----------------------------------------------------------
Information Services - 13.4%
29,200 Ceridian Corp.* 578,525
10,000 Choice One Communications, Inc.* 600,000
32,300 Convergys Corp.* 1,243,550
15,000 Equifax, Inc. 317,813
30,800 Fiserv, Inc.* 839,300
17,500 FLAG Telecom Holdings Ltd.* 500,937
25,800 Gartner Group, Inc. 369,262
22,800 GetThere.com, Inc.* 571,425
12,900 Hotel Reservations Network, Inc.* 335,400
4,400 Intertrust Technologies Corp.* 373,725
3,000 Interwoven, Inc.* 448,500
9,900 Preview Travel, Inc.* 456,019
24,800 SunGard Data Systems, Inc.* 744,000
30,000 The Knot, Inc.* 187,500
42,500 Valassis Communications, Inc.* 1,176,719
1,000 VeriSign, Inc.* 253,000
15,000 Vicinity Corp.* 607,500
----------
9,603,175
----------------------------------------------------------
Leisure - 1.3%
15,400 Harman International Industries, Inc. 953,838
----------------------------------------------------------
Life Insurance - 1.6%
31,700 Hartford Life, Inc. 1,121,387
----------------------------------------------------------
Media - 4.4%
6,500 AMFM, Inc.* 398,937
27,600 Broadwing, Inc. 819,375
5,000 Cablevision Systems Corp.* 320,938
37,200 Insight Communications, Inc.* 776,550
12,800 Westwood One, Inc.* 855,200
----------
3,171,000
----------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
<TABLE>
<CAPTION>
Shares Description Value
Common Stock - (continued)
<C> <S> <C>
Medical Products - 4.5%
51,100 Aouson Corp.* $ 683,462
13,700 Bausch & Lomb, Inc. 722,675
8,400 Stryker Corp. 491,400
25,900 Summit Technology, Inc.* 194,250
39,100 Sybron International Corp.* 1,094,800
-----------
3,186,587
---------------------------------------------------------
Medical Providers - 2.6%
35,300 Health Management Associates, Inc.* 379,475
47,500 Hooper Holmes, Inc. 1,460,625
-----------
1,840,100
---------------------------------------------------------
Oil Refining - 1.2%
22,400 Devon Energy Corp. 834,400
---------------------------------------------------------
Oil Services - 1.0%
15,200 Weatherford International 684,000
---------------------------------------------------------
Property Insurance - 0.7%
11,900 Ambac Financial Group, Inc. 522,856
---------------------------------------------------------
Security/Asset Management - 1.2%
11,600 Legg Mason, Inc. 455,300
22,800 TD Waterhouse Group, Inc.* 417,525
-----------
872,825
---------------------------------------------------------
Semiconductors - 7.4%
8,000 Altera Corp.* 638,000
600 Avanex Corp.* 125,025
14,000 Avnet, Inc. 936,250
3,000 E-Tek Dynamics, Inc.* 819,750
2,500 Intersil Holding Corp.* 148,438
6,700 Linear Technology Corp. 703,081
13,700 Marshall & Ilsley Corp. 629,344
12,200 Maxim Integrated Products, Inc.* 815,112
5,000 Quantum Effect Devices, Inc.* 481,875
-----------
5,296,875
---------------------------------------------------------
Telephone - 2.0%
61,000 Citizens Utilities Co. Class B 930,250
10,000 Dobson Communications Corp.* 190,000
3,125 NTL, Inc.* 285,937
-----------
1,406,187
---------------------------------------------------------
Tobacco - 0.7%
27,100 UST, Inc. 523,369
---------------------------------------------------------
Wireless - 2.8%
35,300 Crown Castle International Corp.* 1,138,425
3,000 Telephone & Data Systems, Inc. 316,500
9,000 Triton PCS Holdings, Inc.* 540,000
-----------
1,994,925
---------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $55,741,157) $63,322,443
---------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
Repurchase Agreement - 9.5%
<S> <C> <C> <C>
Joint Repurchase Agreement Account II
$6,800,000 5.86% 03/01/2000 $ 6,800,000
-----------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $6,800,000) $ 6,800,000
-----------------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $62,541,157) $70,123,443
-----------------------------------------------------------------------
</TABLE>
* 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
------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
Statement of Assets and Liabilities
February 29, 2000 (Unaudited)
Assets:
<TABLE>
<S> <C>
Investment in securities, at value (identified cost
$62,541,157) $70,123,443
Cash, at value 1,678,623
Receivables:
Investment securities sold 465,230
Dividends and interest 22,272
Fund shares sold 6,185,861
Reimbursement from adviser 40,274
Other assets 157
-----------------------------------------------------------------------------
Total assets 78,515,860
-----------------------------------------------------------------------------
Liabilities:
Payables:
Investment securities purchased 3,903,672
Fund shares repurchased 2,757,540
Amounts owed to affiliates 71,522
Accrued expenses and other liabilities 292,472
-----------------------------------------------------------------------------
Total liabilities 7,025,206
-----------------------------------------------------------------------------
Net Assets:
Paid-in capital 57,384,966
Accumulated distributions in excess of net investment loss (74,294)
Accumulated net realized gain on investment transactions 6,597,696
Net unrealized gain on investments 7,582,286
-----------------------------------------------------------------------------
NET ASSETS $71,490,654
-----------------------------------------------------------------------------
Net asset value, offering and redemption price per share:(a)
Class A $16.61
Class B $16.63
Class C $16.51
Institutional $16.65
Service $16.59
-----------------------------------------------------------------------------
Shares outstanding:
Class A 2,427,680
Class B 902,570
Class C 602,701
Institutional 356,735
Service 14,241
-----------------------------------------------------------------------------
Total shares outstanding, $.001 par value (unlimited number of
shares authorized) 4,303,927
-----------------------------------------------------------------------------
</TABLE>
(a) Maximum public offering price per share (NAV per share multiplied by
1.0582) for Class A shares is $17.58. 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.
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
Statement of Operations
For the Six Months Ended February 29, 2000 (Unaudited)
<TABLE>
<S> <C>
Investment income:
Dividends $ 77,774
Interest 70,346
--------------------------------------------------------------------------
Total income 148,120
--------------------------------------------------------------------------
Expenses:
Management fees 150,112
Registration fees 75,064
Distribution and Service fees(a) 48,863
Custodian fees 40,790
Professional fees 26,670
Transfer Agent fees(b) 22,726
Trustee fees 2,471
Service share fees 67
Other 45,102
--------------------------------------------------------------------------
Total expenses 411,865
--------------------------------------------------------------------------
Less -- expenses reimbursed (189,497)
--------------------------------------------------------------------------
Net expenses 222,368
--------------------------------------------------------------------------
NET INVESTMENT LOSS (74,248)
--------------------------------------------------------------------------
Realized and unrealized gain on investment transactions:
Net realized gain from investment transactions 6,647,965
Net change in unrealized loss on investments 8,358,980
--------------------------------------------------------------------------
Net realized and unrealized gain on investment transactions 15,006,945
--------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $14,932,697
--------------------------------------------------------------------------
</TABLE>
(a) Class A, Class B and Class C had Distribution and Service fees of
$20,873, $18,599 and $9,391, respectively.
(b) Class A, Class B, Class C, Institutional Class and Service Class had
Transfer Agent fees of $15,863, $3,534, $1,784, $1,540 and $5,
respectively.
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
Statement of Changes in Net Assets
For the Six Months Ended February 29, 2000 (Unaudited)
<TABLE>
<S> <C>
From operations:
Net investment loss $ (74,248)
Net realized gain on investment transactions 6,647,965
Net change in unrealized loss on investments 8,358,980
---------------------------------------------------------------------------
Net increase in net assets resulting from operations 14,932,697
---------------------------------------------------------------------------
Distributions to shareholders:
In excess of net investment income
Class A Shares (1,699)
Class B Shares (381)
Class C Shares (280)
Institutional Shares (2,162)
Service Shares --
From net realized gain on investment transactions
Class A Shares (264,562)
Class B Shares (52,339)
Class C Shares (26,174)
Institutional Shares (129,481)
Service Shares (35)
---------------------------------------------------------------------------
Total distributions to shareholders (477,113)
---------------------------------------------------------------------------
From share transactions:
Proceeds from sales of shares 51,245,597
Reinvestment of dividends and distributions 466,040
Cost of shares repurchased (8,881,142)
---------------------------------------------------------------------------
Net increase in net assets resulting from share transactions 42,830,495
---------------------------------------------------------------------------
TOTAL INCREASE 57,286,079
---------------------------------------------------------------------------
Net assets:
Beginning of period 14,204,575
---------------------------------------------------------------------------
End of period $71,490,654
---------------------------------------------------------------------------
Accumulated distributions in excess of net investment loss $ (74,294)
---------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
Statement of Changes in Net Assets
For the Period Ended August 31, 1999(a)
<TABLE>
<S> <C>
From operations:
Net investment income $ 2,304
Net realized gain from investment transactions 422,322
Net change in unrealized loss on investments (766,694)
---------------------------------------------------------------------------
Net decrease in net assets resulting from operations (352,068)
---------------------------------------------------------------------------
From share transactions:
Proceeds from sales of shares 14,846,644
Reinvestment of dividends and distributions --
Cost of shares repurchased (290,001)
---------------------------------------------------------------------------
Net increase in net assets resulting from share transactions 14,556,643
---------------------------------------------------------------------------
TOTAL INCREASE 14,204,575
---------------------------------------------------------------------------
Net assets:
Beginning of period --
---------------------------------------------------------------------------
End of period $14,204,575
---------------------------------------------------------------------------
Accumulated undistributed net investment income $ 4,476
---------------------------------------------------------------------------
</TABLE>
(a) Commencement date of operations was May 24, 1999 for all share classes.
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
Notes to Financial Statements
February 29, 2000 (Unaudited)
1. ORGANIZATION
Goldman Sachs Trust (the "Trust") is a Delaware business trust registered un-
der the Investment Company Act of 1940 (as amended) as an open-end, manage-
ment investment company. The Trust includes the Goldman Sachs Growth
Opportunities Fund (the "Fund"). The Fund is a diversified portfolio offering
five classes of shares -- Class A, Class B, Class C, Institutional and Serv-
ice.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies consist-
ently followed by the Fund. The preparation of financial statements in con-
formity 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.
A. Investment Valuation -- Investments in securities traded on a U.S. or for-
eign 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 oc-
curs, 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 portfo-
lio securities are calculated using the identified-cost basis. Dividend in-
come is recorded on the ex-dividend date. Dividends for which the Fund has
the choice to receive either cash or stock are recognized as investment in-
come in an amount equal to the cash dividend. Interest income is recorded on
the basis of interest accrued, premium amortized and discount earned.
C. 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 valua-
tions, foreign currency and other assets and liabilities initially expressed
in foreign currencies are converted each business day into U.S. dollars based
upon current exchange rates; and (ii) purchases and sales of foreign invest-
ments, income and expenses are converted into U.S. dollars based upon cur-
rency 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 hold-
ings of foreign currencies; (ii) currency gains and losses between trade date
and settlement date on investment securities transactions and forward ex-
change contracts; and (iii) gains and losses from the difference between
amounts of dividends and interest recorded and the amounts actually received.
D. Segregation Transactions -- The Fund may enter into certain derivative
transactions to seek to increase total return. Forward foreign currency ex-
change contracts, futures contracts, written options, when-issued securities
and forward commitments represent examples of such transactions. As a result
of entering into these 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.
E. 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.
The characterization of distributions to shareholders for financial report-
ing purposes is determined in accordance with income tax rules. Therefore,
the source of the Fund's distributions may be shown in the accompanying fi-
nancial statements as
12
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
either from or in excess of net investment income or net realized gain on in-
vestment transactions, or from paid-in capital, depending on the type of
book/tax differences that may exist.
At February 29, 2000 the aggregate cost of portfolio securities for federal
income tax purposes is $62,591,473. Accordingly, the gross unrealized gain on
investments was $11,462,451 and the gross unrealized loss on investments was
$3,930,481 resulting in a net unrealized gain of $7,531,970.
F. Expenses -- Expenses incurred by the Trust that do not specifically relate
to an individual Fund of the Trust are allocated to the Funds on a straight-
line or pro rata basis depending upon the nature of the expense.
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 of the Fund separately bears its respective class-specific Transfer
Agency fees.
3. AGREEMENTS
Pursuant to the Investment Management Agreement (the "Agreement"), Goldman
Sachs Asset Management ("GSAM"), a unit of the Investment Management Division
of Goldman, Sachs & Co. ("Goldman Sachs"), serves as the investment adviser
to the Fund. Under the Agreement, the adviser, subject to the general super-
vision of the Trust's Board of Trustees, manages the Fund's portfolio. As
compensation for the services rendered pursuant to the Agreement, the assump-
tion of the expenses related thereto and administering the Fund's business
affairs, including providing facilities, the adviser is entitled to a fee,
computed daily and payable monthly, at an annual rate equal to 1.00% of the
average daily net assets of the Fund.
The adviser has voluntarily agreed to limit certain "Other Expenses" of the
Fund (excluding Management fees, Distribution and Service fees, Transfer
Agent fees, taxes, interest, brokerage, litigation, Service Share fees, in-
demnification costs and other extraordinary expenses) to the extent such ex-
penses exceed, on an annual basis, 0.00% of the average daily net assets of
the Fund.
The Trust, on behalf of the Fund, has adopted Distribution and Service
Plans. Under the Distribution and Service Plans, Goldman Sachs and/or autho-
rized dealers are entitled to a monthly fee from the Fund for distribution
and shareholder maintenance services equal, on an annual basis, to 0.25%,
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
Distribution Agreements. 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 $108,000 for the period ended
February 29, 2000.
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 pay-
able monthly at an annual rate as follows: 0.19% of the average daily net as-
sets for Class A, Class B and Class C Shares and 0.04% of the average daily
net assets for Institutional and Service Shares.
The Trust, on behalf of the Fund, has adopted a Service Plan. This Plan al-
lows for Service Shares to compensate service organizations for providing va-
rying 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 February 29, 2000, the amounts owed to affiliates were approximately
$45,000, $20,000, and $7,000 for Management, Distribution and Service, and
Transfer Agent fees, respectively.
13
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
Notes to Financial Statements (continued)
February 29, 2000 (Unaudited)
4. PORTFOLIO SECURITIES TRANSACTIONS
Purchases and proceeds of sales or maturities of securities (excluding
short-term investments) for the period ended February 29, 2000, were
$55,152,095 and $19,957,936 respectively.
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" require-
ment of the associated futures exchange. Subsequent payments for futures con-
tracts ("variation margin") are paid or received by the Fund daily, depending
on the daily 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 State-
ment of Operations.
The use of futures contracts involve, to varying degrees, elements of mar-
ket risk which may exceed the amounts recognized in the Statement of Assets
and Liabilities. Changes in the value of the futures contract may not di-
rectly correlate with changes in the value of the underlying securities. This
risk may decrease the effectiveness of the Fund's hedging strategies and po-
tentially result in a loss. At February 29, 2000, there were no open futures
contracts.
Option Accounting Principles -- When the Fund writes call or put options,
an amount equal to the premium received is recorded as an asset and as an
equivalent liability. The amount of the liability is subsequently marked-to-
market to reflect the current market value of the option written. When a
written option expires on its stipulated expiration date or the Fund enters
into a closing purchase transaction, the Fund realizes a gain or loss without
regard to any unrealized gain or loss on the underlying security, and the li-
ability related to such option is extinguished. When a written call option is
exercised, the Fund realizes a gain or loss from the sale of the underlying
security, and the proceeds of the sale are increased by the premium origi-
nally received. When a written put option is exercised, the amount of the
premium originally received will reduce the cost of the security which the
Fund purchases upon exercise. There is a risk of loss from a change in value
of such options which may exceed the related premiums received.
Upon the purchase of a call option or a protective put option by the Fund,
the premium paid is recorded as an investment and subsequently marked-to-mar-
ket to reflect the current market value of the option. If an option which the
Fund has purchased expires on the stipulated expiration date, the Fund will
realize a loss in the amount of the cost of the option. If the Fund enters
into a closing sale transaction, the Fund will realize a gain or loss, de-
pending on whether the sale proceeds for the closing sale transaction are
greater or less than the cost of the option. If the Fund exercises a pur-
chased put option, the Fund will realize a gain or loss from the sale of the
underlying security, and the proceeds from such sale will be decreased by the
premium originally paid. If the Fund exercises a purchased call option, the
cost of the security which the Fund purchases upon exercise will be increased
by the premium originally paid. At February 29, 2000, there were no open
written option contracts.
5. LINE OF CREDIT FACILITY
The Fund participates in a $250,000,000 uncommitted and a $250,000,000 com-
mitted, unsecured revolving line of credit facility. Under the most restric-
tive 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. During the
period ended February 29, 2000, the Fund did not have any borrowings under
this facility.
14
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
6. REPURCHASE AGREEMENTS
During the term of a repurchase agreement, the value of the underlying se-
curities, including accrued interest, is required to equal or exceed the
value of the repurchase agreement. The underlying securities for all repur-
chase agreements are held in safekeeping at the Fund's custodian.
7. JOINT REPURCHASE AGREEMENT ACCOUNT
The Fund, together with other registered investment companies having man-
agement agreements with GSAM or its affiliates, transfers uninvested cash
into joint accounts, the daily aggregate balance of which is invested in one
or more repurchase agreements.
At February 29, 2000, the Fund had an undivided interest in the repurchase
agreements in the joint account which equaled $6,800,000 in principal amount.
At February 29, 2000, the following repurchase agreements held in this joint
account were fully collateralized by Federal Agency obligations:
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Repurchase Agreements Amount Rate Date Cost
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Banc of America Securities LLC $1,650,000,000 5.86% 03/01/00 $1,650,000,000
--------------------------------------------------------------------------------------
Bear Stearns & Companies Inc. 200,000,000 5.86 03/01/00 200,000,000
--------------------------------------------------------------------------------------
Chase Securities, Inc. 300,000,000 5.86 03/01/00 300,000,000
--------------------------------------------------------------------------------------
Donaldson, Lufkin & Jenrette, Inc. 500,000,000 5.85 03/01/00 500,000,000
--------------------------------------------------------------------------------------
Salomon Smith Barney Holdings, Inc. 812,000,000 5.86 03/01/00 812,000,000
--------------------------------------------------------------------------------------
Warburg Dillon Read 800,000,000 5.86 03/01/00 800,000,000
--------------------------------------------------------------------------------------
TOTAL JOINT REPURCHASE AGREEMENT ACCOUNT II $4,262,000,000
--------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
Notes to Financial Statements (continued)
February 29, 2000 (Unaudited)
8. 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, Arthur An-
dersen LLP's audit reports contained no adverse opinion or disclaimer of
opinion; nor were their reports qualified or modified as to uncertainty, au-
dit scope, or accounting principles. Further, there were no disagreements be-
tween the Fund and Arthur Andersen LLP on accounting principles or practices,
financial statement disclosure or audit scope or procedure, which if not re-
solved to the satisfaction of Arthur Andersen LLP would have caused them to
make reference to the disagreement in their report.
16
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
9. SUMMARY OF SHARE TRANSACTIONS
Share activity is as follows:
<TABLE>
<CAPTION>
For the Six-Month
Period For the Seven-Month
Ended February 29, Period
2000 Ended August 31,
(Unaudited) 1999(a)
---------------------------------------------
Shares Dollars Shares Dollars
----------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares
Shares sold 1,633,990 $24,265,704 837,654 $ 8,891,707
Reinvestment of dividends and
distributions 18,572 259,636 -- --
Shares repurchased (34,762) (526,380) (27,774) (289,978)
---------------------------------------
1,617,800 23,998,960 809,880 8,601,729
------------------------------------------------------------------------------
Class B Shares
Shares sold 858,546 12,679,805 51,071 529,423
Reinvestment of dividends and
distributions 3,548 49,742 -- --
Shares repurchased (10,595) (161,432) -- (2)
---------------------------------------
851,499 12,568,115 51,071 529,421
------------------------------------------------------------------------------
Class C Shares
Shares sold 605,487 9,157,516 25,390 263,994
Reinvestment of dividends and
distributions 1,796 24,984 -- --
Shares repurchased (29,972) (422,807) -- (1)
---------------------------------------
577,311 8,759,693 25,390 263,993
------------------------------------------------------------------------------
Institutional Shares
Shares sold 341,391 4,920,856 515,358 5,160,020
Reinvestment of dividends and
distributions 9,403 131,643 -- --
Shares repurchased (509,415) (7,770,523) (2) (20)
---------------------------------------
(158,621) (2,718,024) 515,356 5,160,000
------------------------------------------------------------------------------
Service Shares
Shares sold 14,088 221,716 150 1,500
Reinvestment of dividends and
distributions 3 35 -- --
Shares repurchased -- -- -- --
---------------------------------------
14,091 221,751 150 1,500
------------------------------------------------------------------------------
NET INCREASE 2,902,080 $42,830,495 1,401,847 $14,556,643
------------------------------------------------------------------------------
</TABLE>
(a) Commencement date of operations was May 24, 1999 for all share classes.
17
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
Financial Highlights
Selected Data for a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
Income from
investment operations(a) Distributions to shareholders
--------------------------- ------------------------------------
Net asset Net In excess
value, investment Net realized From net of net Net increase
beginning income and unrealized investment investment From net in net asset
of period (loss) gain income income realized gains value
FOR THE SIX MONTHS ENDED FEBRUARY 29, (Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
2000 - Class A Shares $10.13 $(0.03) $6.74(e) $-- $-- $(0.23) $6.48
2000 - Class B Shares 10.18 (0.08) 6.76(e) -- -- (0.23) 6.45
2000 - Class C Shares 10.10 (0.08) 6.72(e) -- -- (0.23) 6.41
2000 - Institutional
Shares 10.13 -- 6.75(e) -- -- (0.23) 6.52
2000 - Service Shares 10.12 (0.04) 6.74(e) -- -- (0.23) 6.47
FOR THE PERIOD ENDED AUGUST 31,
1999 - Class A Shares
(commenced May 24) $10.00 $(0.01)(e) $ 0.14(e) $-- $-- $-- $0.13
1999 - Class B Shares
(commenced May 24) 10.00 (0.03)(e) 0.21(e) -- -- -- 0.18
1999 - Class C Shares
(commenced May 24) 10.00 (0.03)(e) 0.13(e) -- -- -- 0.10
1999 - Institutional
Shares (commenced May
24) 10.00 0.01 0.12 -- -- -- 0.13
1999 - Service Shares
(commenced May 24) 10.00 -- 0.12 -- -- -- 0.12
---------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Includes the balancing effect of calculating per share amounts.
(b) 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.
(c) Annualized.
(d) Not annualized.
(e) Calculated based on the average shares outstanding methodology.
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
GOLDMAN SACHS GROWTH OPPORTUNITIES FUND
<TABLE>
<CAPTION>
Ratios assuming no expense limitations
-------------------------------------------
Net assets Ratio of Ratio of
Net asset at end of Ratio of net investment net investment
value, end Total period net expenses to income (loss) to Ratio of expenses to loss to
of period return(b)(d) (in 000s) average net assets(c) average net assets(c) average net assets(c) average net assets(c)
<S> <C> <C> <C> <C> <C> <C>
$16.61 66.73% $40,338 1.44% (0.45)% 2.70% (1.71)%
16.63 66.10 15,017 2.19 (1.21) 3.45 (2.47)
16.51 66.24 9,958 2.19 (1.17) 3.45 (2.43)
16.65 67.15 5,942 1.04 (0.07) 2.30 (1.33)
16.59 66.67 236 1.54 (0.59) 2.80 (1.85)
$10.13 1.30% $ 8,204 1.44% (0.27)% 14.15% (12.98)%
10.18 1.80 520 2.19 (1.04) 14.90 (13.75)
10.10 1.00 256 2.19 (1.12) 14.90 (13.83)
10.13 1.30 5,223 1.04 0.39 13.75 (12.32)
10.12 1.20 2 1.54 0.03 14.25 (12.68)
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio
turnover rat(d)
67.45%
67.45
67.45
67.45
67.45
26.53%
26.53
26.53
26.53
26.53
</TABLE>
19
<PAGE>
(This page intentionally left blank)
<PAGE>
GOLDMAN SACHS FUND PROFILE
Goldman Sachs Growth Opportunities Fund
An Investment Idea for the Long Term
Historically, stocks have demonstrated greater potential to build
wealth over the long term than most other types of investments.
Goldman Sachs Growth Opportunities Fund provides investors access to
the benefits associated with equity investing. The Fund seeks long-
term capital growth and growth of income, primarily through equity
securities that, in management's view, offer favorable capital
appreciation and/or dividend-paying ability.
Target Your Needs
The Goldman Sachs Growth Opportunities 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 the
Goldman Sachs Funds family without an additional charge.* (Please
note: in general, greater returns are associated with greater risk.)
----------------------------------------------------------------------
Goldman Sachs Fund
Goldman Sachs Funds offers more than 30 investment options for global
diversification across borders, investment styles, asset classes and
security capitalizations.
[GRAPH]
INTERNATIONAL
EQUITY
DOMESTIC
EQUITY
.Goldman Sachs
Growth
Opportunities
Fund
FIXED
INCOME
MONEY
MARKET
-- Lower Risk/Return Higher Risk/Return --
ASSET ALLOCATION
SPECIALTY
For More Information
To learn more about the Goldman Sachs Growth Opportunities 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.
<PAGE>
GOLDMAN SACHS ASSET MANAGEMENT 32 OLD SLIP, 17TH FLOOR, NEW YORK, NEW YORK 10005
TRUSTEES OFFICERS
Ashok N. Bakhru, Chairman Douglas C. Grip, President
David B. Ford Jesse H. Cole, Vice President
Douglas C. Grip James A. Fitzpatrick, Vice President
John P. McNulty Nancy L. Mucker, Vice President
Mary P. McPherson John M. Perlowski, Treasurer
Alan A. Shuch Philip V. Giuca, Jr., Assistant Treasurer
Jackson W. Smart, Jr. Michael J. Richman, Secretary
William H. Springer Howard B. Surloff, Assistant Secretary
Richard P. Strubel Valerie A. Zondorak, Assistant Secretary
GOLDMAN SACHS
Investment Adviser,
Distributor and Transfer Agent
Visit our internet address: www.gs.com/funds
This material is not authorized for distribution to prospective investors unless
preceded or accompanied by a current Prospectus. Investors should read the
Prospectus carefully before investing or sending money.
The Growth Opportunities Fund's foreign investments may be more volatile than an
investment in U.S. securities and are subject to the risks of currency
fluctuations and political developments.
The Fund may participate in the Initial Public Offering (IPO) market, and a
portion of the Fund's returns consequently may be attributable to its investment
in IPOs, which may have a magnified impact due to the Fund's small asset base.
As the Fund's assets grow, it is probable that the effect of the Fund's
investment in IPOs on its total returns may not be as significant.
Goldman, Sachs & Co. is the distributor of the Fund.
Copyright 2000 Goldman, Sachs & Co. All rights reserved. Date of first use:
April 30, 2000/00-514 GROPPSAR/9.5K/4-00
