<PAGE>
Goldman Sachs Funds
STRATEGIC GROWTH 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 STRATEGIC GROWTH 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.
. 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 STRATEGIC GROWTH FUND
Fund Basics
as of February 29, 2000
Assets Under Management $77.3 Million
Number of Holdings
84
NASDAQ SYMBOLS
Class A Shares
GGRAX
Class B Shares
GSWBX
Class C Shares
GGRCX
Institutional Shares
GSTIX
Service Shares
GSTSX
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
PERFORMANCE REVIEW
- ----------------------------------------------------------------------------------------------
August 31, 1999-February 29, 2000 Fund Total Return (without sales charge)1 S&P 500 Index2
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Class A 11.93% 4.11%
Class B 11.55 4.11
Class C 11.54 4.11
Institutional 12.13 4.11
Service 11.93 4.11
- ----------------------------------------------------------------------------------------------
</TABLE>
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 500 Index (with dividends reinvested) figures do not
reflect any fees or expenses. In addition, investors cannot invest directly
in the Index.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
STANDARDIZED TOTAL RETURNS3
- ----------------------------------------------------------------------------------------------
For the period ended 12/31/99 Class A Class B Class C Institutional Service
<S> <C> <C> <C> <C> <C>
Last 6 months 7.81% 8.49% 12.67% 14.26% 13.96%
Since Inception 13.52% 14.50% 18.70% 20.32% 20.00%
(5/24/99)
- ----------------------------------------------------------------------------------------------
</TABLE>
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.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
TOP TEN HOLDINGS AS OF 2/29/00
- ----------------------------------------------------------------------------------------------
Holding % of Total Net Assets Line of Business
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Microsoft Corp. 3.6% Computer Software
Cisco Systems, Inc. 3.6 Computer Hardware
AT&T Corp.-Liberty Media Group 3.5 Media
General Electric Co. 3.5 Heavy Electrical
Intel Corp. 3.0 Semiconductors
The AES Corp. 2.9 Electrical Utilities
Time Warner, Inc. 2.6 Media
Warner-Lambert Co. 2.2 Drugs
Sun Microsystems, Inc. 2.2 Computer Hardware
CBS Corp. 1.9 Media
- ----------------------------------------------------------------------------------------------
</TABLE>
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.
<PAGE>
GOLDMAN SACHS STRATEGIC GROWTH FUND
Performance Overview
Dear Shareholder,
We are pleased to report on the performance of the Goldman Sachs Strategic
Growth 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 11.93%,
11.55%, 11.54%, 12.13% and 11.93%, respectively. Over the same
time period, the Fund's benchmark, the S&P 500 Index, generated a
cumulative total return of 4.11%.
Portfolio Composition
The Strategic Growth Fund invests primarily in large cap growth
stocks. More specifically, we focus the portfolio on high quality
growth companies with strong business franchises, favorable
demographic trends and excellent company management. This
portfolio is more selective and focused than many mutual funds,
as we typically hold between 70 to 90 holdings.
The Fund's absolute and relative performance was strong,
occurring during a period when investors generally favored
large-cap growth, and in particular, technology stocks. In
addition, our selective positions in the technology sector
enhanced returns, and we were able to avoid some of the
volatility that occurred during the period.
Portfolio Highlights
. Cisco Systems, Inc. -- Cisco Systems, a leading network and
communications company, continues to perform well for the Fund.
Cisco invented the router, which is the infrastructure needed to
build the Internet backbone. This company has been benefiting
significantly from the growing demand for networking and routers,
as a result of the explosive growth of the Internet.
. QUALCOMM, Inc. -- QUALCOMM, a leading wireless phone chip
manufacturer, was one of the best performing stocks in 1999. With
its CDMA technology, the firm was uniquely positioned to benefit
from the sharp increase in demand for hand-held phone products.
While its stock price has fallen from its record highs, we
continue to believe that QUALCOMM offers substantial long-term
appreciation potential.
. EchoStar Communications Corp. and Infinity Broadcasting Corp.
Class H -- These firms are two examples of Fund holdings in the
television and broadcasting industries. EchoStar, which provides
direct broadcast satellite (DBS) programming services, and
Infinity, a dominant radio and outdoor advertising company, have
benefited from the growth in advertising, particularly by
Internet companies that are trying to gather name and market
recognition.
2
<PAGE>
GOLDMAN SACHS STRATEGIC GROWTH FUND
GROWTH INVESTMENT PROCESS
Our approach to growth investing is based on a consistent style that has been
applied over the past 19 years.
Strong Growth Characteristics
Growth companies have earnings expectations that exceed those of the stock
market as a whole. We search for growth companies with:
. Favorable financial characteristics
. High returns on invested capital
. Dominant market share for core service or product
. Recurring revenue streams
. Solid brand franchises
. Management committed to maximizing shareholder returns
Result
A diversified portfolio of stocks with strong long-term growth potential.
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
<PAGE>
GOLDMAN SACHS STRATEGIC GROWTH 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.
<PAGE>
GOLDMAN SACHS STRATEGIC GROWTH 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 0.00% 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 Strategic Growth Fund. For comparative purposes, the perfor-
mance of the Fund's benchmark (S&P 500 Index) 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.
Strategic Growth Fund's Lifetime Performance
Growth of a $10,000 Investment, May 24, 1999 to February 29, 2000.
[GRAPH]
Class A Class B Class C Institutional Service S&P 500
Shares Shares Shares Shares Shares Index
------ ------ ------ ------ ------ -----
5/24/99 9,450 10,000 10,000 10,000 10,000 10,000
May-99 9,376 9,920 9,920 9,920 9,920 9,764
Jun-99 9,953 10,530 10,530 10,530 10,530 10,301
Jul-99 9,660 10,210 10,210 10,220 10,210 9,980
Aug-99 9,509 10,040 10,050 10,070 10,060 9,930
Sep-99 9,357 9,880 9,880 9,920 9,900 9,658
Oct-99 10,255 10,820 10,830 10,870 10,850 10,269
Nov-99 10,482 11,050 11,060 11,110 11,090 10,477
Dec-99 11,352 11,950 11,970 12,032 12,000 11,095
Jan-00 10,823 11,390 11,410 11,481 11,450 10,538
Feb-00 10,643 10,700 11,110 11,291 11,260 10,338
<TABLE>
<CAPTION>
Aggregate Total Return through February
29, 2000 Since Inception(a) Six Months(a)
<S> <C> <C>
Class A shares (commenced May 24, 1999)
Excluding sales charges 12.60% 11.93%
Including sales charges 6.43% 5.73%
---------------------------------------------------------------------------
Class B shares (commenced May 24, 1999)
Excluding contingent deferred sales
charges 12.00% 11.55%
Including contingent deferred sales
charges 7.00% 6.55%
---------------------------------------------------------------------------
Class C shares (commenced May 24, 1999)
Excluding contingent deferred sales
charges 12.10% 11.54%
Including contingent deferred sales
charges 11.10% 10.54%
---------------------------------------------------------------------------
Institutional shares (commenced May 24,
1999) 12.91% 12.13%
---------------------------------------------------------------------------
Service shares (commenced May 24, 1999) 12.60% 11.93%
---------------------------------------------------------------------------
</TABLE>
(a) Not annualized.
5
<PAGE>
GOLDMAN SACHS STRATEGIC GROWTH FUND
Statement of Investments
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
Common Stocks - 95.7%
<C> <S> <C>
Banks - 4.1%
28,550 Citigroup, Inc. $ 1,475,678
19,600 State Street Corp. 1,428,350
7,200 Wells Fargo & Co. 238,050
-----------
3,142,078
-----------------------------------------------------------
Chemicals - 0.8%
5,092 E.I. du Pont de Nemours & Co. 257,146
4,200 Minnesota Mining & Manufacturing Co. 370,125
-----------
627,271
-----------------------------------------------------------
Computer Hardware - 8.8%
20,900 Cisco Systems, Inc.* 2,762,719
9,700 EMC Corp.* 1,154,300
11,600 International Business Machines, Inc. 1,183,200
18,200 Sun Microsystems, Inc.* 1,733,550
-----------
6,833,769
-----------------------------------------------------------
Computer Software - 6.5%
6,900 CheckFree Holdings Corp.* 606,769
31,100 Microsoft Corp.* 2,779,563
18,400 Oracle Corp.* 1,366,200
2,300 S1 Corp.* 235,613
-----------
4,988,145
-----------------------------------------------------------
Department Store - 1.7%
27,500 Wal-Mart Stores, Inc. 1,338,906
-----------------------------------------------------------
Drugs - 8.0%
18,500 American Home Products Corp. 804,750
23,800 Bristol-Myers Squibb Co. 1,352,137
6,000 Eli Lilly & Co. 356,625
4,700 Merck & Co., Inc. 289,344
28,500 Pfizer, Inc. 915,562
21,800 Schering-Plough Corp. 760,275
20,300 Warner-Lambert Co. 1,736,919
-----------
6,215,612
-----------------------------------------------------------
Electrical Equipment - 2.9%
2,400 Corning, Inc. 451,200
8,800 Nortel Networks Corp. 981,200
5,500 QUALCOMM, Inc. 783,406
-----------
2,215,806
-----------------------------------------------------------
Electrical Utilities - 2.9%
27,100 The AES Corp.* 2,271,319
-----------------------------------------------------------
Financial Services - 5.0%
29,400 Cendant Corp.* 523,687
30,100 Federal Home Loan Mortgage Corp. 1,256,675
24,000 Federal National Mortgage Assn. 1,272,000
34,500 MBNA Corp. 784,875
-----------
3,837,237
-----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
Common Stocks - (continued)
<C> <S> <C>
Food & Beverage - 3.5%
37,800 Nabisco Group Holdings Corp. $ 326,025
18,000 PepsiCo., Inc. 580,500
19,100 The Coca-Cola Co. 925,156
12,600 Wm. Wrigley Jr. Co. 852,075
-----------
2,683,756
-----------------------------------------------------------------------
Heavy Electrical - 3.5%
20,400 General Electric Co. 2,696,625
-----------------------------------------------------------------------
Home Products - 5.1%
16,600 Avon Products, Inc. 449,238
25,700 Colgate-Palmolive Co. 1,341,219
21,800 Ralston-Ralston Purina Group 617,212
7,000 The Gillette Co. 246,750
14,800 The Procter & Gamble Co. 1,302,400
-----------
3,956,819
-----------------------------------------------------------------------
Hotels - 1.6%
18,000 Harrah's Entertainment, Inc.* 344,250
16,700 Marriott International, Inc. 460,294
19,900 Starwood Hotels & Resorts Worldwide, Inc. Class B 446,506
-----------
1,251,050
-----------------------------------------------------------------------
Information Services - 5.4%
6,600 America Online, Inc.* 389,400
8,908 At Home Corp.* 305,656
29,300 First Data Corp. 1,318,500
1,800 Network Solutions, Inc.* 580,387
16,800 Valassis Communications, Inc.* 465,150
2,200 VeriSign, Inc.* 556,600
3,600 Yahoo!, Inc.* 574,875
-----------
4,190,568
-----------------------------------------------------------------------
Media - 14.6%
23,600 A.H. Belo Corp. 303,850
5,000 AMFM, Inc.* 306,875
52,100 AT&T Corp.-Liberty Media Group* 2,722,225
24,900 CBS, Corp.* 1,483,106
6,000 Comcast Corp. 255,000
8,700 EchoStar Communications Corp.* 991,800
5,200 General Motors Corp. Class H* 626,600
22,025 Infinity Broadcasting Corp.* 703,424
15,500 MediaOne Group, Inc.* 1,216,750
11,300 The Walt Disney Co. 378,550
23,500 Time Warner, Inc. 2,009,250
6,800 Tribune Co. 264,775
-----------
11,262,205
-----------------------------------------------------------------------
Medical Products - 0.8%
8,900 Johnson & Johnson 638,575
-----------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
GOLDMAN SACHS STRATEGIC GROWTH FUND
<TABLE>
<CAPTION>
Shares Description Value
Common Stocks - (continued)
<C> <S> <C>
Oil Refining - 0.7%
3 Conoco, Inc. Class B $ 59
6,800 Exxon Mobil Corp. 512,125
-----------
512,184
--------------------------------------------------------
Oil Services - 1.4%
14,500 Schlumberger Ltd. 1,071,188
--------------------------------------------------------
Property Insurance - 2.2%
20,500 Ambac Financial Group, Inc. 900,719
9,400 American International Group, Inc. 831,312
-----------
1,732,031
--------------------------------------------------------
Publishing - 1.8%
10,200 Gannett Co., Inc. 664,913
16,500 The New York Times Co. 697,125
-----------
1,362,038
--------------------------------------------------------
Restaurants - 0.5%
13,300 McDonald's Corp. 419,781
--------------------------------------------------------
Security/Asset Management - 0.4%
8,100 The Charles Schwab Corp. 338,681
--------------------------------------------------------
Semiconductors - 4.1%
20,400 Intel Corp. 2,305,200
5,000 Texas Instruments, Inc. 832,500
-----------
3,137,700
--------------------------------------------------------
Specialty Retail - 4.1%
20,400 CVS Corp. 714,000
4,900 Tandy Corp. 186,506
18,550 The Home Depot, Inc. 1,072,422
45,900 Walgreen Co. 1,184,794
-----------
3,157,722
--------------------------------------------------------
Telephone - 4.0%
12,800 GTE Corp. 755,200
28,150 MCI WorldCom, Inc.* 1,256,194
17,600 SBC Communications, Inc. 668,800
6,100 Sprint Corp. 372,100
-----------
3,052,294
--------------------------------------------------------
Wireless - 1.3%
7,200 Crown Castle International Corp.* 225,900
7,600 Sprint Corp. (PCS Group)* 393,300
3,500 Telephone & Data Systems, Inc. 369,250
-----------
988,450
--------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $70,888,819) $73,921,810
--------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
Repurchase Agreement - 4.3%
<S> <C> <C> <C>
Joint Repurchase Agreement Account II
$3,300,000 5.86% 03/01/2000 $ 3,300,000
--------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $3,300,000) $ 3,300,000
--------------------------------------------
TOTAL INVESTMENTS
(Cost $74,188,819) $77,221,810
--------------------------------------------
</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.
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
GOLDMAN SACHS STRATEGIC GROWTH FUND
Statement of Assets and Liabilities
February 29, 2000 (Unaudited)
<TABLE>
<S> <C>
Assets:
Investment in securities, at value (identified cost
$74,188,819) $77,221,810
Cash 48,578
Receivables:
Dividends and interest 48,331
Fund shares sold 1,063,444
Reimbursement from adviser 64,939
Other assets 280
-----------------------------------------------------------------------------
Total assets 78,447,382
-----------------------------------------------------------------------------
Liabilities:
Payables:
Investment securities purchased 731,081
Fund shares repurchased 50,251
Amounts owed to affiliates 91,794
Accrued expenses and other liabilities 294,669
-----------------------------------------------------------------------------
Total liabilities 1,167,795
-----------------------------------------------------------------------------
Net Assets:
Paid-in capital 74,683,014
Accumulated net investment loss (131,595)
Accumulated net realized loss from investment transactions (304,823)
Net unrealized gain on investments 3,032,991
-----------------------------------------------------------------------------
NET ASSETS $77,279,587
-----------------------------------------------------------------------------
Net asset value, offering and redemption price per share:(a)
Class A $11.26
Class B $11.20
Class C $11.21
Institutional $11.29
Service $11.26
-----------------------------------------------------------------------------
Shares outstanding:
Class A 3,692,210
Class B 1,153,397
Class C 534,793
Institutional 1,485,834
Service 150
-----------------------------------------------------------------------------
Total shares outstanding, $.001 par value (unlimited number of
shares authorized) 6,866,384
-----------------------------------------------------------------------------
</TABLE>
(a) Maximum public offering price per share (NAV per share multiplied by
1.0582) for Class A Shares is $11.92. 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 STRATEGIC GROWTH FUND
Statement of Operations
For the Six Months Ended February 29, 2000 (Unaudited)
<TABLE>
<S> <C>
Investment income:
Dividends(a) $ 159,551
Interest 87,904
-----------------------------------------------------------------------------
Total income 247,455
-----------------------------------------------------------------------------
Expenses:
Management fees 242,451
Distribution and Service fees(b) 97,377
Registration fees 75,064
Custodian fees 50,757
Transfer Agent fees(c) 38,256
Professional fees 26,670
Trustee fees 2,471
Other 45,140
-----------------------------------------------------------------------------
Total expenses 578,186
-----------------------------------------------------------------------------
Less -- expenses reimbursed (199,129)
-----------------------------------------------------------------------------
Net expenses 379,057
-----------------------------------------------------------------------------
NET INVESTMENT LOSS (131,602)
-----------------------------------------------------------------------------
Realized and unrealized gain (loss) on investment transactions:
Net realized loss from:
Investment transactions (231,181)
Net change in unrealized loss on:
Investments 3,336,808
-----------------------------------------------------------------------------
Net realized and unrealized gain on investment transactions 3,105,627
-----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,974,025
-----------------------------------------------------------------------------
</TABLE>
(a) Taxes withheld on dividends were $22.
(b) Class A, Class B and Class C had Distribution and Service fees of
$31,003, $42,364 and $24,010, respectively.
(c) Class A, Class B, Class C, Institutional Class and Service Class had
Transfer Agent fees of $23,563, $8,049, $4,562, $2,082 and $0,
respectively.
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
GOLDMAN SACHS STRATEGIC GROWTH FUND
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the
Six Months Ended
February 29, For the
2000 period ended
(Unaudited) August 31, 1999(a)
<S> <C> <C>
From operations:
Net investment loss $ (131,602) $ (2,481)
Net realized loss from investment
transactions (231,181) (73,642)
Net change in unrealized loss on
investments 3,336,808 (303,817)
-----------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 2,974,025 (379,940)
-----------------------------------------------------------------------------
Distributions to Shareholders:
From net investment income
Class A Shares (1,011) --
Class B Shares -- --
Class C Shares -- --
Institutional Shares (1,164) --
Service Shares -- --
-----------------------------------------------------------------------------
Total distributions to shareholders (2,175) --
-----------------------------------------------------------------------------
From share transactions:
Proceeds from sales of shares 57,440,426 22,791,503
Reinvestment of dividends and
distributions 1,911 --
Cost of shares repurchased (5,269,420) (276,743)
-----------------------------------------------------------------------------
Net increase in net assets resulting
from share transactions 52,172,917 22,514,760
-----------------------------------------------------------------------------
TOTAL INCREASE 55,144,767 22,134,820
-----------------------------------------------------------------------------
Net assets:
Beginning of period 22,134,820 --
-----------------------------------------------------------------------------
End of period $77,279,587 $22,134,820
-----------------------------------------------------------------------------
Accumulated undistributed net
investment income (loss) $ (131,595) $ 2,182
-----------------------------------------------------------------------------
</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.
10
<PAGE>
GOLDMAN SACHS STRATEGIC GROWTH 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 Strategic
Growth 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 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
Trust's Board of Trustees.
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. 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 either from or in excess of net investment income or
net realized gain on investment transactions, or from paid-in capital, de-
pending on the type of book/tax differences that may exist.
The Fund had approximately $69,000 at August 31, 1999 (the Fund's tax year-
end) of capital loss carry forward expiring in 2007 for federal tax purposes.
This amount is available to be carried forward to offset future capital gains
to the extent permitted by applicable laws or regulations.
At February 29, 2000, the aggregate cost of portfolio securities for fed-
eral income tax purposes is $74,193,790. Accordingly, the gross unrealized
gain on investments was $8,691,756 and the gross unrealized loss on invest-
ments was $5,663,736 resulting in a net unrealized gain of $3,028,020.
11
<PAGE>
GOLDMAN SACHS STRATEGIC GROWTH FUND
Notes to Financial Statements (continued)
February 29, 2000 (Unaudited)
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
D. 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 shareholders of the Fund bear all expenses and
fees relating to their respective Distribution and Service plans. Sharehold-
ers of Service shares bear all expenses and fees paid to service organiza-
tions. Each class of shares separately bears its respective class-specific
Transfer Agency fees.
E. 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.
F. 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.
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 investment adviser has voluntarily agreed to limit certain "Other Ex-
penses" of the Fund (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, 0.00% of the average daily
net assets of the Fund. For the period ended February 29, 2000, Goldman Sachs
reimbursed approximately $199,000.
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 $204,000 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
$60,000, $23,000 and $9,000 for Management, Distribution and Service and
Transfer Agent fees, respectively.
12
<PAGE>
GOLDMAN SACHS STRATEGIC GROWTH FUND
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 $57,150,916
and $6,201,334, respectively.
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 equiv-
alent liability. The amount of the liability is subsequently marked-to-market
to reflect the current market value of the option written. When a written op-
tion 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 liability
related to such option is extinguished. When a written call option is exer-
cised, the Fund realizes a gain or loss from the sale of the underlying secu-
rity, and the proceeds of the sale are increased by the premium originally
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 pur-
chases 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.
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.
13
<PAGE>
GOLDMAN SACHS STRATEGIC GROWTH FUND
Notes to Financial Statements (continued)
February 29, 2000 (Unaudited)
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. These facilities are 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 to the Fund based on the amount of the commitment. During the
period ended February 29, 2000, the Fund did not have any borrowings under
these facilities.
6. REPURCHASE AGREEMENTS
During the term of a repurchase agreement, the value of the underlying secu-
rities, including accrued interest, is required to equal or exceed the value
of the repurchase agreement. The underlying securities for all repurchase
agreements are held in safekeeping at the Fund's custodian.
7. JOINT REPURCHASE AGREEMENT ACCOUNT
The Fund, together with other registered investment companies having manage-
ment 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 $3,300,000 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% 03/01/2000 $1,650,000,000
----------------------------------------------------------------------------------------
Bear Stearns Companies, Inc. 200,000,000 5.86 03/01/2000 200,000,000
----------------------------------------------------------------------------------------
Chase Securities, Inc. 300,000,000 5.86 03/01/2000 300,000,000
----------------------------------------------------------------------------------------
Donaldson, Lufkin & Jenrette, Inc. 500,000,000 5.85 03/01/2000 500,000,000
----------------------------------------------------------------------------------------
Salomon Smith Barney Holdings, Inc. 812,000,000 5.86 03/01/2000 812,000,000
----------------------------------------------------------------------------------------
Warburg Dillon Read 800,000,000 5.86 03/01/2000 800,000,000
----------------------------------------------------------------------------------------
TOTAL JOINT REPURCHASE AGREEMENT ACCOUNT II $4,262,000,000
----------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
GOLDMAN SACHS STRATEGIC GROWTH FUND
8. CHANGE IN ACCOUNTANTS
On October 26, 1999, the Board of Trustees of the Portfolios, 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 Andersen LLP 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
reports.
15
<PAGE>
GOLDMAN SACHS STRATEGIC GROWTH FUND
Notes to Financial Statements (continued)
February 29, 2000 (Unaudited)
9. SUMMARY OF SHARE TRANSACTIONS
Share activity is as follows:
<TABLE>
<CAPTION>
For the Six Months
Ended February 29,
2000
(Unaudited)
----------------------
Shares Dollars
----------------------------------------------
<S> <C> <C>
Class A Shares
Shares sold 2,853,321 $31,873,547
Reinvestments of divi-
dends and distributions 65 749
Shares repurchased (192,426) (2,165,914)
----------------------
2,660,960 29,708,382
----------------------------------------------
Class B Shares
Shares sold 855,310 9,367,076
Reinvestments of divi-
dends and distributions -- --
Shares repurchased (39,941) (451,890)
----------------------
815,369 8,915,186
----------------------------------------------
Class C Shares
Shares sold 342,423 3,685,791
Reinvestments of divi-
dends and distributions -- --
Shares repurchased (45,344) (507,604)
----------------------
297,079 3,178,187
----------------------------------------------
Institutional Shares
Shares sold 1,078,092 12,514,012
Reinvestments of divi-
dends and distributions 101 1,162
Shares repurchased (186,486) (2,144,012)
----------------------
891,707 10,371,162
----------------------------------------------
Service Shares
Shares sold -- --
Reinvestments of divi-
dends and distributions -- --
Shares repurchased -- --
----------------------
-- --
----------------------------------------------
NET INCREASE 4,665,115 $52,172,917
----------------------------------------------
</TABLE>
16
<PAGE>
GOLDMAN SACHS STRATEGIC GROWTH FUND
9. SUMMARY OF SHARE TRANSACTIONS (continued)
Share activity is as follows:
<TABLE>
<CAPTION>
For the period
ended August 31,
1999(a)
----------------------
Shares Dollars
----------------------------------------------
<S> <C> <C>
Class A Shares
Shares sold 1,045,628 $10,768,656
Reinvestments of divi-
dends and distributions -- --
Shares repurchased (14,378) (145,441)
----------------------
1,031,250 10,623,215
----------------------------------------------
Class B Shares
Shares sold 351,153 3,596,720
Reinvestments of divi-
dends and distributions -- --
Shares repurchased (13,125) (131,280)
----------------------
338,028 3,465,440
----------------------------------------------
Class C Shares
Shares sold 237,714 2,435,567
Reinvestments of divi-
dends and distributions -- --
Shares repurchased -- (2)
----------------------
237,714 2,435,565
----------------------------------------------
Institutional Shares
Shares sold 594,129 5,989,060
Reinvestments of divi-
dends and distributions -- --
Shares repurchased (2) (20)
----------------------
594,127 5,989,040
----------------------------------------------
Service Shares
Shares sold 150 1,500
Reinvestments of divi-
dends and distributions -- --
Shares repurchased -- --
----------------------
150 1,500
----------------------------------------------
NET INCREASE 2,201,269 $22,514,760
----------------------------------------------
</TABLE>
(a) Commencement date of operations was May 24, 1999 for all share classes.
17
<PAGE>
GOLDMAN SACHS STRATEGIC GROWTH 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 From net of net Net increase
beginning income Net realized and investment investment From net in net asset
of period (loss) unrealized 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 $10.06 $(0.02)(e) $1.22(e) $ -- $ -- $ -- $1.20
2000 - Class B Shares 10.04 (0.06)(e) 1.22(e) -- -- -- 1.16
2000 - Class C Shares 10.05 (0.06)(e) 1.22(e) -- -- -- 1.16
2000 - Institutional
Shares 10.07 -- (e) 1.22(e) -- -- -- 1.22
2000 - Service Shares 10.06 (0.02)(e) 1.22(e) -- -- -- 1.20
FOR THE PERIOD ENDED AUGUST 31,
1999 - Class A Shares
(commenced May 24) 10.00 -- 0.06 -- -- -- 0.06
1999 - Class B Shares
(commenced May 24) 10.00 (0.03)(e) 0.07(e) -- -- -- 0.04
1999 - Class C Shares
(commenced May 24) 10.00 (0.03)(e) 0.08(e) -- -- -- 0.05
1999 - Institutional
Shares (commenced May
24) 10.00 0.01 0.06 -- -- -- 0.07
1999 - Service Shares
(commenced May 24) 10.00 (0.01) 0.07 -- -- -- 0.06
- ------------------------------------------------------------------------------------------------------------------
</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 STRATEGIC GROWTH FUND
<TABLE>
<CAPTION>
Ratios assuming no voluntary waiver of fees
or expense limitations
--------------------------------------------
Net assets Ratio of Ratio of
Net asset at end of net expenses to net investment Ratio of Ratio of Portfolio
value, end Total period average net income (loss) to expenses to net investment loss to turnover
of period return(b)(d) (in 000s) assets(c) average net assets(c) average net assets(c) average net assets(c) rate(d)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$11.26 11.93% $41,586 1.44% (0.42)% 2.26% (1.24)% 13.47%
11.20 11.55 12,914 2.19 (1.17) 3.01 (1.99) 13.47
11.21 11.54 5,997 2.19 (1.18) 3.01 (2.00) 13.47
11.29 12.13 16,781 1.04 (0.03) 1.86 (0.85) 13.47
11.26 11.93 2 1.54 (0.36) 2.36 (1.18) 13.47
- ------------------------------------------------------------------------------------------------------------------------------------
10.06 0.60 10,371 1.44 (0.17) 11.70 (10.43) 6.98
10.04 0.40 3,393 2.19 (0.97) 12.45 (11.23) 6.98
10.05 0.50 2,388 2.19 (0.99) 12.45 (11.25) 6.98
10.07 0.70 5,981 1.04 0.24 11.30 (10.02) 6.98
10.06 0.60 2 1.54 (0.24) 11.80 (10.50) 6.98
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
(This page intentionally left blank)
<PAGE>
GOLDMAN SACHS FUND PROFILE
Goldman Sachs Strategic Growth 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 Strategic Growth Fund provides investors access to the
benefits associated with equity investing. The Fund seeks long-term
capital growth, primarily through a diversified portfolio of equity
securities with long-term capital appreciation potential.
Target Your Needs
The Goldman Sachs Strategic Growth 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.)
----------------------------------------------------------------------
Goldman Sachs Funds
Goldman Sachs Funds offers more than 30 investment options for global
diversification across borders, investment sytles, asset classes and
security capitalizations.
[GRAPH]
INTERNATIONAL
EQUITY
DOMESTIC
EQUITY
.Goldman Sachs
Strategic Growth
Fund
FIXED
INCOME
MONEY
MARKET
-- Lower Risk/Return Higher Risk/Return --
ASSET ALLOCATION
SPECIALTY
For More Information
To learn more about the Goldman Sachs Strategic Growth 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 Strategic Growth 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 STGRSAR/6.2K/4-00
