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GOLDMAN SACHS TRUST
N-30D, 2000-09-07

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GOLDMAN SACHS CORE TAX-MANAGED EQUITY FUND

Market Overview

Dear Shareholder,

It has been an eventful period in the financial markets thus far in 2000 — one marked by a dramatic increase in volatility, uncertainty and, ultimately, mixed performance results.

Market Review

The Russell 3000 Index fell 3.5% in the second quarter, during a very volatile period in the financial markets. For example, the gap between the daily high and low prices for the S&P 500 Index averaged 2.0% during the quarter, versus its long-term average of 1.2%. Even more dramatic was the high-low spread in NASDAQ, which averaged 4.3% for the quarter, and exceeded 1% every single day.

Market leadership also changed rapidly during the quarter, as investors struggled with an uncertain economic and financial environment. During April and May, the Russell 1000 Value Index outperformed the Russell 1000 Growth Index. However, market sentiment abruptly changed in June, and investors again favored larger-cap growth stocks by a near record margin. As a result, during the second quarter, the Russell 1000 Growth Index outperformed the Russell Value Index — marking its fourth consecutive quarter of outperformance. In contrast, smaller-capitalization growth stocks, as measured by the Russell 2000 Growth Index, underperformed smaller-cap value stocks -7.4% versus +2.0% during the quarter.

Outlook

We remain cautiously optimistic about the near term prospects for the U.S equity market. The combination of reasonable growth in the U.S., stronger demand growth outside of the U.S. (particularly in Asia), and a moderation in energy prices should be beneficial to equities.

In summary, we appreciate your confidence and look forward to serving your investment needs in the future.

Sincerely,

David B. Ford Co-Head, Goldman Sachs Asset Management

David W. Blood Co-Head, Goldman Sachs Asset Management

July 17, 2000

GOLDMAN SACHS CORE TAX-MANAGED EQUITY FUND

Fund Basics

as of June 30, 2000

PERFORMANCE REVIEW

April 3, 2000–	Fund Cumulative Total Return
June 30, 2000	(based on NAV)1	Russell 3000 Index2
Class A	–2.30%	–3.46%
Class B	–2.40	–3.46
Class C	–2.60	–3.46
Institutional	–2.30	–3.46
Service	–2.40	–3.46

1	The net asset value represents the net assets of the Fund (ex-dividend) divided by the total number of shares outstanding. The Fund’s performance assumes the reinvestment of dividends and other distributions. Total return figures are not annualized.
2	The Russell 3000 Index is an unmanaged index that measures the performance of the 3,000 largest U.S. companies based on total market capitalization which represents approximately 98% of the investable U.S. equity market. Index figures do not reflect any fees or expenses. In addition, investors cannot invest directly in the Index.

STANDARDIZED TOTAL RETURNS³

For the period ended 6/30/00	Class A	Class B	Class C	Institutional	Service
Since Inception	–7.66%	–7.28%	–3.57%	–2.30%	–2.40%
(4/3/00)

3	The Standardized Total Returns are average annual total returns or cumulative total returns (only if the performance period is one year or less) as of the most recent calendar quarter-end. They assume reinvestment of all distributions at net asset value. These returns reflect a maximum initial sales charge of 5.5% for Class A shares, the assumed deferred sales charge for Class B shares (5% maximum declining to 0% after six years) and the assumed deferred sales charge for Class C shares (1% if redeemed within 12 months of purchase). Because Institutional and Service shares do not involve a sales charge, such a charge is not applied to their Standardized Total Returns.
	Total return figures represent past performance and do not indicate future results, which will vary. The investment return and principal value of an investment will fluctuate and, therefore, an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance reflects expense limitations in effect. In their absence, performance would be reduced.

TOP 10 HOLDINGS AS OF 6/30/00⁴

Holding	% of Total Net Assets	Line of Business
General Electric Co.	4.5%	Conglomerates
Intel Corp.	3.3	Semiconductors
Cisco Systems, Inc.	2.9	Computer Hardware
Pfizer, Inc.	2.9	Drugs
Citigroup, Inc.	2.3	Banks
Exxon Mobile Corp.	2.2	Energy Resources
Microsoft Corp.	1.6	Computer Software
The Walt Disney Co.	1.4	Media
Johnson & Johnson	1.4	Medical Products
SBC Communications, Inc.	1.2	Telephone

⁴ The top 10 holdings may not be representative of the Fund’s future investments.

1

GOLDMAN SACHS CORE TAX-MANAGED EQUITY FUND

Performance Overview

Dear Shareholder,

We are pleased to report on the performance of the Goldman Sachs CORE Tax-Managed Equity Fund from its inception on April 3, 2000 through June 30, 2000.

Performance Review

From its inception through June 30, 2000, the Fund’s Class A, B, C, Institutional and Service shares generated total cumulative returns, without sales charges, of –2.30 %, –2.40%, –2.60%, –2.30%, and –2.40%, respectively. These figures compared to the –3.46% total cumulative return of the Fund’s benchmark, the Russell 3000 Index.

The CORE^SM strategy is a well-defined investment process that has historically provided consistent, risk-managed performance. We seek to buy stocks that are attractively valued and favored by fundamental research analysts, have experienced good momentum and are more stable. The diversification of our models typically adds value, because when one theme doesn’t work, others usually do. For example, when momentum stocks underperform, value stocks typically advance more than average. Portfolios are constructed taking into account stocks’ risk characteristics as well as their expected returns.

The Fund’s outperformance versus the benchmark was largely due to stock selection within sectors. Medical Products and Drugs was the largest absolute contributor to the Fund. In addition, our holdings within Technology outpaced the sector by a healthy margin. Within the four CORE themes: Value, Momentum, Stability, and Research, the tilt toward Value factors contributed positively to Fund returns early in the period, whereas Stability and Momentum produced the largest benefits to performance toward the end of the period.

Portfolio Positioning

The CORE Tax-Managed Equity Fund seeks to provide investors with a tax-efficient means for maintaining broadly diversified exposure to the entire U.S. equity market. The benchmark is the Russell 3000 Index, which covers the range from large cap to small cap. In managing the CORE products, we do not take size or sector bets. Rather, we seek to add value versus the Fund’s benchmark by individual stock selection. Our quantitative process seeks stocks with good momentum and high expected growth that also appear to be good values (relative to other stocks in the same industry). We prefer stocks favored by fundamental research analysts and less volatile stocks with lower-than-average probability of reporting disappointing earnings. Our portfolio construction process integrates tax considerations into investment decisions with the goal of seeking to maximize after-tax return.

2

GOLDMAN SACHS CORE TAX-MANAGED EQUITY FUND

Portfolio Highlights

The Fund’s best performers were in the Electrical Equipment, Computer Software, Drug and Medical Product sectors. Some examples of particularly strong holdings included:

• Electrical Equipment — Corning (up 49.3%).
• Computer Software — BEA Systems (up 38.4%).
• Drug Companies — Ivax Corp. (up 56.6%) and Pfizer Inc. (up 25.3%).
• Medical Products — Johnson and Johnson (up 41.5%).

  Portfolio Outlook

  Looking ahead, we continue to believe that cheaper stocks should outpace more expensive ones, good momentum stocks should do better than poor momentum stocks, lower-risk stocks should perform better than higher risk stocks, as should those favored by research analysts. As such, we anticipate remaining fully invested and expect that the value we add over time will be due to stock selection, as opposed to sector or size allocations.

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

  Goldman Sachs Quantitative Equity Investment Team

  New York
  July 17, 2000

3

GOLDMAN SACHS CORE TAX-MANAGED EQUITY 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?

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

4

Shares		Description		Value
Common Stocks – 86.7%
Airlines – 0.5%
2,200		AMR Corp. *		$          58,163
2,400		Delta Air Lines, Inc.		121,350
1,500		UAL Corp.		87,281
				266,794
Apparel – 0.2%
200		Kenneth Cole Productions, Inc. *		8,000
700		Liz Claiborne, Inc.		24,675
800		Springs Industries, Inc.		25,750
500		The Timberland Co. *		35,406
				93,831
Banks – 5.1%
2,200		BancWest Corp.		36,163
5,900		Bank of America Corp.		253,700
17,500		Citigroup, Inc.		1,054,375
1,100		City National Corp.		38,225
2,000		First Security Corp.		27,125
7,000		FleetBoston Financial Corp.		238,000
2,100		J.P. Morgan & Co., Inc.		231,262
600		PNC Financial Services Group		28,125
5,600		Silicon Valley Bancshares *		238,700
5,850		The Chase Manhattan Corp.		269,466
1,600		UnionBanCal Corp.		29,700
2,900		Wells Fargo & Co.		112,375
				2,557,216
Chemicals – 1.9%
1,600		Air Products & Chemicals, Inc.		49,300
1,900		Albemarle Corp.		37,525
1,300		AMCOL International Corp.		21,450
1,000		Arch Chemicals, Inc.		21,875
400		ATMI, Inc. *		18,600
1,500		Brady Corp.		48,750
2,100		E.I. du Pont de Nemours & Co.		91,875
600		Eastman Chemical Co.		28,650
300		FMC Corp. *		17,400
1,300		Minnesota Mining & Manufacturing Co.		107,250
300		PPG Industries, Inc.		13,294
4,300		Praxair, Inc.		160,981
1,600		Rohm & Haas Co.		55,200
7,800		The Dow Chemical Co.		235,463
1,900		The Sherwin-Williams Co.		40,256
				947,869
Clothing – 0.3%
900		American Eagle Outfitters, Inc.		12,600
4,300		Intimate Brands, Inc.		84,925
1,900		The Limited, Inc.		41,088
1,100		The Neiman Marcus Group, Inc. *		33,206
				171,819

Shares		Description		Value
Common Stocks – (continued)
Computer Hardware – 6.7%
500		Advanced Digital Information Corp. *		$            7,969
2,200		Apple Computer, Inc. *		115,225
100		Brocade Communications Systems, Inc. *		18,348
1,200		Cabletron Systems, Inc. *		30,300
21,400		Cisco Systems, Inc. *		1,360,237
2,100		Compaq Computer Corp.		53,681
3,600		Dell Computer Corp. *		177,525
4,400		EMC Corp. *		338,525
100		Extreme Networks, Inc. *		10,550
200		Gateway, Inc. *		11,350
4,200		Hewlett-Packard Co.		524,475
500		InFocus Corp. *		16,094
500		Kronos, Inc. *		13,000
2,000		Network Appliance, Inc. *		161,000
100		Proxim, Inc. *		9,897
300		RSA Security, Inc. *		20,775
800		Seagate Technology, Inc. *		44,000
4,600		Sun Microsystems, Inc. *		418,313
				3,331,264
Computer Software – 5.0%
100		Adobe Systems, Inc.		13,000
1,900		BEA Systems, Inc. *		93,931
200		Computer Associates International, Inc.		10,238
600		Documentum, Inc. *		53,625
255		i2 Technologies, Inc. *		26,588
3,700		International Business Machines, Inc.		405,381
400		Intuit, Inc. *		16,550
100		ISS Group, Inc. *		9,873
800		Macrovision Corp. *		51,138
200		Mercury Interactive Corp. *		19,350
100		Micromuse, Inc. *		16,548
9,300		Microsoft Corp. *		744,000
200		MicroStrategy, Inc. *		6,000
200		Networks Associates, Inc. *		4,075
6,700		Oracle Corp. *		563,219
400		Project Software & Development, Inc. *		7,200
400		Remedy Corp. *		22,300
400		Sabre Holdings Corp.		11,400
200		Sapient Corp. *		21,388
500		Siebel Systems, Inc. *		81,781
500		Symantec Corp. *		26,969
2,500		VERITAS Software Corp. *		282,539
400		Vignette Corp. *		20,806
				2,507,899
Conglomerates – 4.2%
39,900		General Electric Co.		2,114,700
Construction – 0.4%
5,800		LNR Property Corp.		113,100
750		MasTec, Inc. *		28,641
600		Quanta Services, Inc. *		33,000
1,300		USG Corp.		39,487
				214,228

Shares		Description		Value
Common Stocks – (continued)
Consumer Durables – 0.1%
1,200		Whirlpool Corp.		$          55,950
Defense/Aerospace – 1.3%
1,500		General Dynamics Corp.		78,375
700		Honeywell International, Inc.		23,581
6,100		Northrop Grumman Corp.		404,125
1,500		Precision Castparts Corp.		67,875
2,300		The Boeing Co.		96,169
				670,125
Department Store – 1.4%
6,900		Federated Department Stores, Inc. *		232,875
700		Kohl’s Corp. *		38,938
2,200		Sears, Roebuck & Co.		71,775
800		Target Corp.		46,400
500		The May Department Stores Co.		12,000
5,300		Wal-Mart Stores, Inc.		305,412
				707,400
Drugs – 8.0%
400		Abgenix, Inc. *		47,944
200		Affymetrix, Inc. *		33,025
1,200		Allergan, Inc.		89,400
5,300		Alpharma, Inc.		329,925
2,200		American Home Products Corp.		129,250
1,800		Amgen, Inc. *		126,450
200		Andrx Corp. *		12,784
600		Biogen, Inc. *		38,700
2,700		Bristol-Myers Squibb Co.		157,275
1,700		Cardinal Health, Inc.		125,800
600		Celgene Corp. *		35,325
300		Cephalon, Inc. *		17,963
700		Chiron Corp. *		33,250
1,700		Eli Lilly & Co.		169,787
500		Forest Laboratories, Inc. *		50,500
2,000		Immunex Corp. *		98,875
5,300		IVAX Corp. *		219,950
1,300		Jones Pharma, Inc.		51,919
600		MedImmune, Inc. *		44,400
5,700		Merck & Co., Inc.		436,762
800		Millennium Pharmaceuticals, Inc. *		89,500
1,000		NBTY, Inc. *		6,375
5,500		Perrigo Co. *		34,719
28,200		Pfizer, Inc.		1,353,600
1,100		Pharmacia Corp.		56,856
800		Priority Healthcare Corp. Class B *		59,450
500		Protein Design Labs, Inc. *		82,477
1,200		Schering-Plough Corp.		60,600
				3,992,861
Electrical Equipment – 6.7%
943		ADC Telecommunications, Inc. *		79,094
900		Advanced Energy Industries, Inc. *		53,044
1,100		Advanced Fibre Communications, Inc. *		49,844
724		Agilent Technologies, Inc. *		53,395

Shares		Description		Value
Common Stocks – (continued)
Electrical Equipment – (continued)
2,400		Amphenol Corp. *		$        158,850
4,800		AVX Corp.		110,100
500		Broadcom Corp. *		109,469
400		C-COR.net Corp. *		10,800
100		C-Cube Microsystems, Inc. *		1,963
300		CIENA Corp. *		50,006
700		Coherent, Inc. *		58,712
200		Comverse Technology, Inc. *		18,600
2,000		Corning, Inc.		539,750
1,500		Credence Systems Corp. *		82,781
400		Eaton Corp.		26,800
254		Harmonic, Inc. *		6,287
600		Harris Corp.		19,650
4,200		KEMET Corp. *		105,262
1,100		KLA-Tencor Corp. *		64,419
900		Level 3 Communications, Inc. *		79,200
800		LTX Corp. *		27,950
5,600		Lucent Technologies, Inc.		331,800
2,800		Molex, Inc.		134,750
4,200		Motorola, Inc.		122,062
4,011		Nortel Networks Corp.		273,751
300		PE Corp-PE Biosystems Group		19,763
100		Polycom, Inc. *		9,409
750		Power-One, Inc. *		85,453
4,000		QUALCOMM, Inc. *		240,000
600		SCI Systems, Inc. *		23,512
900		Scientific-Atlanta, Inc.		67,050
1,500		Tektronix, Inc.		111,000
700		Teradyne, Inc. *		51,450
450		Three-Five Systems, Inc. *		26,550
3,300		Vishay Intertechnology, Inc. *		125,194
				3,327,720
Electrical Utilities – 1.7%
2,600		Constellation Energy Group		84,662
5,100		Dynegy, Inc.		348,394
1,000		Florida Progress Corp.		46,875
1,100		Public Service Enterprise Group, Inc.		38,088
4,000		Reliant Energy, Inc.		118,250
5,000		Unicom Corp.		193,437
				829,706
Energy Resources – 3.5%
500		Amerada Hess Corp.		30,875
300		Apache Corp.		17,644
3,500		Chevron Corp.		296,843
1,200		Enron Corp.		77,400
12,800		Exxon Mobil Corp.		1,004,800
1,300		Kerr-McGee Corp.		76,619
500		Murphy Oil Corp.		29,719
1,500		Noble Affiliates, Inc.		55,875
1,600		Occidental Petroleum Corp.		33,700
2,300		Phillips Petroleum Co.		116,581
500		Vintage Petroleum, Inc.		11,281
				1,751,337

Shares		Description		Value
Common Stocks – (continued)
Entertainment – 0.0%
300		The Seagram Co. Ltd.		$          17,400
Environmental Services – 0.1%
1,800		Republic Services, Inc. *		28,800
Equity REIT – 0.6%
4,600		Equity Office Properties Trust		126,787
1,300		Equity Residential Properties Trust		59,800
1,100		Franchise Finance Corp. of America		25,300
1,100		Host Marriott Corp.		10,313
1,100		Mack-Cali Realty Corp.		28,256
800		Public Storage, Inc.		18,750
1,100		Vornado Realty Trust		38,225
				307,431
Financial Services – 0.9%
600		American Express Co.		31,275
1,600		Comdisco, Inc.		35,700
800		E.W. Blanch Holdings, Inc.		16,250
200		Express Scripts, Inc. *		12,425
1,000		Federal Home Loan Mortgage Corp.		40,500
2,300		Federal National Mortgage Assoc.		120,031
600		Marsh & McLennan Cos., Inc.		62,663
2,600		MBNA Corp.		70,525
2,850		Metris Cos., Inc. *		71,606
				460,975
Food & Beverage – 3.3%
2,700		Agribrands International, Inc. *		113,231
1,700		Coca-Cola Enterprises, Inc.		27,731
1,300		Corn Products International, Inc.		34,450
1,700		Fleming Cos., Inc.		22,206
300		H.J. Heinz Co.		13,125
4,800		IBP, Inc.		74,100
300		Keebler Foods Co.		11,138
1,200		McCormick & Co., Inc.		39,000
8,600		Nabisco Holdings Corp.		451,500
3,400		PepsiCo, Inc.		151,088
500		Suiza Foods Corp. *		24,438
1,600		SYSCO Corp.		67,400
3,000		The Coca-Cola Co.		172,312
9,600		The Pepsi Bottling Group, Inc.		280,200
3,300		Unilever NV		141,900
				1,623,819
Forest – 0.5%
1,800		Bemis Co., Inc.		60,525
1,500		Georgia-Pacific Group		39,375
900		International Paper Co.		26,831
1,300		Kimberly-Clark Corp.		74,587
1,700		Pactiv Corp. *		13,388
700		United Stationers, Inc. *		22,663
600		Weyerhaeuser Co.		25,800
				263,169

Shares		Description		Value
Common Stocks – (continued)
Gas Utilities – 0.2%
3,900		KeySpan Corp.		$        119,925
Grocery –  0.2%
900		Albertson’s, Inc.		29,925
1,100		Safeway, Inc. *		49,637
500		The Great Atlantic & Pacific Tea Co., Inc.		8,313
				87,875
Heavy Electrical – 0.4%
700		American Power Conversion Corp. *		28,569
2,300		Anixter International, Inc. *		60,950
800		C&D Technologies, Inc.		45,200
300		Cable Design Technologies Corp. *		10,050
500		Emerson Electric Co.		30,187
400		International FiberCom, Inc. *		10,200
300		Rockwell International Corp.		9,450
				194,606
Home Products – 1.4%
1,800		Alberto-Culver Co. Class B		55,013
800		Avon Products, Inc.		35,600
1,900		Colgate-Palmolive Co.		113,762
700		Energizer Holdings, Inc. *		12,775
1,300		Lancaster Colony Corp.		24,944
1,300		Playtex Products, Inc. *		14,706
15,900		Ralston-Ralston Purina Group		317,006
900		The Estee Lauder Cos., Inc.		44,494
1,400		The Procter & Gamble Co.		80,150
				698,450
Industrial Parts – 0.5%
800		Brooks Automation, Inc. *		51,150
800		Caterpillar, Inc.		27,100
1,000		ITT Industries, Inc.		30,375
1,600		Lennox International, Inc.		21,200
800		Parker-Hannifin Corp.		27,400
900		The Toro Co.		29,644
1,100		United Technologies Corp.		64,762
				251,631
Industrial Services – 0.5%
500		Administaff, Inc.		31,750
1,000		Dollar Thrifty Automotive Group, Inc. *		18,438
2,300		Interim Services, Inc. *		40,825
1,800		Robert Half International, Inc. *		51,300
800		Ryder System, Inc.		15,150
1,800		XTRA Corp.		70,987
				228,450
Information Services – 1.2%
1,300		ADVO, Inc. *		54,600
100		Computer Sciences Corp. *		7,469
1,000		Diamond Technology Partners, Inc. *		88,000

Shares		Description		Value
Common Stocks – (continued)
Information Services – (continued)
1,400		Electronic Data Systems Corp.		$          57,750
2,400		First Data Corp.		119,100
600		Fiserv, Inc. *		25,950
500		Healtheon/WebMD Corp. *		7,406
500		iGATE Capital Corp. *		6,875
700		Lamar Advertising Co. *		30,319
1,500		Modis Professional Services, Inc. *		13,313
300		Omnicom Group, Inc.		26,719
1,500		StarTek, Inc. *		75,562
2,200		TeleTech Holdings, Inc. *		68,337
200		TMP Worldwide, Inc. *		14,762
				596,162
Internet – 1.8%
1,000		3Com Corp. *		57,625
500		Amazon.com, Inc. *		18,156
7,200		America Online, Inc. *		379,800
200		At Home Corp. *		4,150
600		BroadVision, Inc. *		30,488
800		CMGI, Inc. *		36,650
200		DoubleClick, Inc. *		7,625
400		E*TRADE Group, Inc. *		6,600
200		eBay, Inc. *		10,863
1,200		Exodus Communications, Inc. *		55,275
500		InfoSpace, Inc. *		27,625
400		Inktomi Corp. *		47,300
300		Lycos, Inc. *		16,200
100		Macromedia, Inc. *		9,669
100		Priceline.com, Inc. *		3,798
200		PSINet, Inc. *		5,025
100		RealNetworks, Inc. *		5,056
100		S1 Corp. *		2,331
100		Verio, Inc. *		5,548
408		VeriSign, Inc. *		71,924
400		VerticalNet, Inc. *		14,775
800		Yahoo!, Inc. *		99,100
				915,583
Leisure – 0.3%
900		Bally Total Fitness Holding Corp. *		22,838
700		Eastman Kodak Co.		41,650
2,000		GTECH Holdings Corp. *		45,375
900		Station Casinos, Inc. *		22,500
				132,363
Life Insurance – 0.9%
700		American General Corp.		42,700
1,000		CIGNA Corp.		93,500
4,800		Conseco, Inc.		46,800
700		Lincoln National Corp.		25,287
3,000		Nationwide Financial Services, Inc.		98,625
1,200		StanCorp Financial Group, Inc.		38,550
3,100		The MONY Group, Inc.		104,819
				450,281

Shares		Description		Value
Common Stocks – (continued)
Media – 3.6%
2,000		AT&T Corp.-Liberty Media Group *		$          48,500
2,800		Fox Entertainment Group, Inc. *		85,050
800		General Motors Corp. Class H *		70,200
6,000		Infinity Broadcasting Corp. *		218,625
17,100		The Walt Disney Co.		663,694
3,700		Time Warner, Inc.		281,200
3,507		Tribune Co.		139,876
4,400		TV Guide, Inc. *		150,700
1,800		Viacom, Inc. Class B *		122,737
				1,780,582
Medical Products – 2.5%
3,900		Abbott Laboratories		173,794
300		Arrow International, Inc.		10,050
200		Bausch & Lomb, Inc.		15,475
1,000		Baxter International, Inc.		70,312
1,000		Becton, Dickinson & Co.		28,687
200		Cytyc Corp. *		10,675
100		IDEC Pharmaceuticals Corp. *		11,731
6,200		Johnson & Johnson		631,625
4,500		Mallinckrodt, Inc.		195,469
1,500		Medtronic, Inc.		74,719
				1,222,537
Medical Providers – 0.2%
400		HCA-The Healthcare Corp.		12,150
500		PacifiCare Health Systems, Inc. *		30,094
500		Quest Diagnostics, Inc. *		35,781
1,200		Tenet Healthcare Corp.		32,400
				110,425
Mining – 0.3%
2,200		Alcan Aluminium Ltd.		68,200
2,500		Nucor Corp.		82,969
				151,169
Motor Vehicle – 1.3%
1,000		Delphi Automotive Systems Corp.		14,562
2,400		Ford Motor Co.		103,200
8,400		General Motors Corp.		487,725
200		Johnson Controls, Inc.		10,263
1,000		Navistar International Corp. *		31,062
200		PACCAR, Inc.		7,938
314		Visteon Corp. *		3,810
				658,560
Oil Refining – 0.5%
5,700		Conoco, Inc. Class B		140,006
500		Tosco Corp.		14,156
700		Ultramar Diamond Shamrock Corp.		17,369
2,600		USX-Marathon Group		65,163
				236,694

Shares		Description		Value
Common Stocks – (continued)
Oil Services – 0.1%
900		BJ Services Co. *		$          56,250
Property Insurance – 1.9%
300		AMBAC Financial Group, Inc.		16,444
2,400		American International Group, Inc.		282,000
1,000		American National Insurance Co.		51,000
1,000		Everest Re Group, Ltd. *		32,875
1,300		Fidelity National Financial, Inc.		23,806
3,900		Loews Corp.		234,000
1,300		MGIC Investment Corp.		59,150
2,200		Radian Group, Inc.		113,850
2,400		The Allstate Corp.		53,400
300		The Commerce Group, Inc.		8,850
1,400		The PMI Group, Inc.		66,500
				941,875
Publishing – 0.4%
1,500		John H. Harland Co.		22,407
2,000		Quebecor World		48,500
500		R.R. Donnelley & Sons Co.		11,281
600		Scholastic Corp. *		36,675
400		The McClatchy Co.		13,250
1,400		The New York Times Co.		55,300
				187,413
Railroads – 0.3%
1,900		Burlington Northern Santa Fe Corp.		43,581
1,400		Canadian National Railway Co.		40,863
400		Kansas City Southern Industries, Inc.		35,475
1,000		The St. Joe Co.		30,000
				149,919
Restaurants – 0.3%
1,600		Brinker International, Inc. *		46,800
700		Jack in the Box, Inc. *		17,237
800		McDonald’s Corp.		26,350
500		Starbucks Corp.		19,094
1,200		Tricon Global Restaurants, Inc. *		33,900
				143,381
Security/Asset Management – 1.2%
500		Affiliated Managers Group, Inc. *		22,750
1,400		Donaldson, Lufkin & Jenrette, Inc. - DLJdirect *		9,975
700		Lehman Brothers Holdings, Inc.		66,194
900		Merrill Lynch & Co., Inc.		103,500
2,900		Morgan Stanley Dean Witter & Co.		241,425
400		National Discount Brokers Group, Inc. *		12,750
200		Southwest Securities Group, Inc.		7,450
3,400		The Charles Schwab Corp.		114,325
				578,369

Shares		Description		Value
Common Stocks – (continued)
Semiconductors – 6.5%
2,200		Advanced Micro Devices, Inc. *		$        169,950
100		Altera Corp. *		10,194
300		Amkor Technology, Inc. *		10,594
300		ANADIGICS, Inc. *		10,219
900		Analog Devices, Inc. *		68,400
2,200		Applied Materials, Inc. *		199,375
100		Applied Micro Circuits Corp. *		9,875
3,700		Arrow Electronics, Inc.		114,700
1,100		Atmel Corp.		40,562
100		Conexant Systems, Inc. *		4,863
300		Cree, Inc. *		40,050
11,400		Intel Corp.		1,524,037
900		International Rectifier Corp. *		50,400
1,600		JDS Uniphase Corp. *		191,800
200		Kopin Corp. *		13,850
1,200		Lam Research Corp. *		45,000
400		LSI Logic Corp. *		21,650
800		Micron Technology, Inc. *		70,450
700		National Semiconductor Corp. *		39,725
300		PMC-Sierra, Inc. *		53,306
100		QLogic Corp. *		6,606
100		RF Micro Devices, Inc. *		8,763
200		SDL, Inc. *		57,037
400		Semtech Corp. *		30,594
5,900		Texas Instruments, Inc.		405,256
100		TriQuint Semiconductor, Inc. *		9,569
200		Xilinx, Inc. *		16,512
				3,223,337
Specialty Retail – 1.3%
800		Barnes & Noble, Inc. *		17,800
200		Best Buy Co., Inc. *		12,650
1,300		Circuit City Stores-Circuit City Group		43,144
1,500		Lowe’s Cos., Inc.		61,594
1,800		Michaels Stores, Inc. *		82,462
4,800		The Home Depot, Inc.		239,700
1,100		Tiffany & Co.		74,250
1,700		Trans World Entertainment Corp. *		20,612
3,100		Zale Corp. *		113,150
				665,362
Telephone – 5.3%
400		Allegiance Telecom, Inc. *		25,600
12,975		AT&T Corp.		410,334
16,700		BCE, Inc.		397,669
4,900		Bell Atlantic Corp.		248,981
8,800		BellSouth Corp.		375,100
2,400		Citizens Communications Co. *		41,400
300		Covad Communications Group, Inc. *		4,838
1,100		GTE Corp.		68,475
1,728		NEXTLINK Communications, Inc. *		65,556
13,100		SBC Communications, Inc.		566,575
1,600		Sprint Corp.		81,600
7,700		WorldCom, Inc. *		353,237
				2,639,365

Shares		Description		Value
Common Stocks – (continued)
Thrifts – 0.3%
3,400		Golden West Financial Corp.		$        138,763
Tobacco – 0.3%
5,300		Philip Morris Cos., Inc.		140,781
Truck Freight – 0.3%
2,200		United Parcel Service, Inc.		129,800
Wireless – 0.3%
500		American Tower Corp. *		20,844
200		Audiovox Corp. *		4,413
1,000		Nextel Communications, Inc. *		61,187
800		Telephone & Data Systems, Inc.		80,200
				166,644
TOTAL COMMON STOCKS
(Cost $43,628,146)
				$  43,238,865

Principal Amount		Interest Rate			Maturity Date		Value
Repurchase Agreement – 6.6%
Joint Repurchase Agreement Account II
$3,300,000		6.87	%		07/03/2000		$  3,300,000
TOTAL REPURCHASE AGREEMENT
(Cost $3,300,000)
							$  3,300,000
TOTAL INVESTMENTS
(Cost $46,928,146)
							$46,538,865

*

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.

Assets:

Investment in securities, at value (identified cost $46,928,146)		$46,538,865
Cash		298,337
Receivables:
Investment securities sold		300,940
Dividends and interest		35,124
Fund shares sold		2,756,293
Variation margin		34,070
Reimbursement from adviser		90,025
Deferred organization expenses, net		935
Total assets		50,054,589
Liabilities:
Payables:
Fund shares repurchased		26,400
Amounts owed to affiliates		103,046
Accrued expenses and other liabilities		18,169
Total liabilities		147,615
Net Assets:
Paid-in capital		49,940,925
Accumulated undistributed net investment income		228,285
Accumulated net realized gain on investment transactions		151,795
Net unrealized loss on investments		(414,031	)
NET ASSETS		$49,906,974
Net asset value, offering and redemption price per share: (a)
Class A		$9.77
Class B		$9.76
Class C		$9.74
Institutional		$9.77
Service		$9.76
Shares outstanding:
Class A		1,859,790
Class B		1,386,171
Class C		984,396
Institutional		882,232
Service		150
Total shares outstanding, $.001 par value (unlimited number of shares authorized)		5,112,739

(a)

Maximum public offering price per share (NAV per share multiplied by 1.0582) for Class A shares is $10.34. At redemption, Class B and Class C shares may be subject to a contingent deferred sales charge, assessed on the amount equal to the lesser of the current net asset value or the original purchase price of the shares.

Investment income:

Dividends (b)		$  291,483
Interest		43,929
Total income		335,412
Expenses:
Management fees		56,692
Registration fees		48,981
Distribution and Service fees (c)		35,551
Custodian fees		30,311
Transfer Agent fees (d)		10,802
Printing fees		53,930
Professional fees		2,362
Trustee fees		815
Amortization of deferred organization expenses		452
Other		5,586
Total expenses		245,481
Less — expenses reimbursed and waived		(138,354	)
Net expenses		107,128
NET INVESTMENT INCOME		228,285
Realized and unrealized gain (loss) on investment transactions:
Net realized gain from:
Investment transactions		130,987
Futures transactions		20,808
Net change in unrealized loss on:
Investments		(389,281	)
Futures		(24,729	)
Translation of assets and liabilities denominated in foreign currencies		(21	)
Net realized and unrealized loss on investment transactions		(262,236	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS		$  (33,951	)

(a)

Commencement of operations was April 3, 2000 for all classes.

(b)

Foreign withholding taxes on dividends were $1,013.

(c)

Class A, Class B and Class C had Distribution and Service fees of $5,434, $17,061 and $13,056, respectively.

(d)

Class A, Class B, Class C, Institutional Class and Service Class had Transfer Agent fees of $4,130, $3,242, $2,481, $949 and $0, respectively.

From operations:

Net investment income		$      228,285
Net realized gain on investment transactions		151,795
Net change in unrealized loss on investments		(414,031	)
Net decrease in net assets resulting from operations		(33,951	)
From share transactions:
Proceeds from sales of shares		52,439,082
Cost of shares repurchased		(2,498,157	)
Net increase in net assets resulting from share transactions		49,940,925
TOTAL INCREASE		49,906,974
Net assets:
Beginning of period
End of period		$49,906,974
Accumulated undistributed net investment income		$    228,285

(a)

Commencement of operations was April 3, 2000.

1.  ORGANIZATION

Goldman Sachs Trust (the “Trust”) is a Delaware business trust registered under the Investment Company Act of 1940 (as amended) as an open-end management investment company. The Trust includes the Goldman Sachs CORE Tax-Managed Equity Fund (the “Fund”). The Fund is a diversified portfolio offering five classes of shares — Class A, Class B, Class C, Institutional and Service.

2.  SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of the significant accounting policies consistently followed by the Fund. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts. Actual results could differ from those estimates.

A.  Investment Valuation — Investments in securities traded on a U.S. or foreign securities exchange or the NASDAQ system are valued daily at their last sale price on the principal exchange on which they are traded. If no sale occurs, securities are valued at the last bid price. 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. Securities for which quotations are not readily available, are valued at fair value using methods approved by the Trust’s Board of Trustees.

B.  Securities Transactions and Investment Income — Securities transactions are recorded as of the trade date. Realized gains and losses on sales of investments are calculated using the identified-cost basis. Dividend income 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 income in an amount equal to the cash dividend. This amount is also used as an estimate of the fair value of the stock received. Interest income is determined on the basis of interest accrued.

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 valuations, foreign currency and other assets and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based on current exchange rates; (ii) purchases and sales of foreign investments, income and expenses are converted into U.S. dollars based on currency exchange rates prevailing on the respective dates of such transactions.

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

D.  Expenses — Expenses incurred by the Trust which 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. Each class of shares separately bears its respective class-specific Transfer Agency fees. Shareholders of Service shares bear all expenses and fees paid to service organizations.

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

2.  SIGNIFICANT ACCOUNTING POLICIES (continued)

At June 30, 2000 the aggregate cost of portfolio securities for federal income tax purposes is $46,928,146. Accordingly, the gross unrealized gain on investments was $2,678,506 and the gross unrealized loss was $3,067,787 resulting in a net unrealized loss of $389,281.

3.  AGREEMENTS

Goldman Sachs Asset Management (“GSAM”), a unit of the Investment Management Division of Goldman, Sachs & Co. (“ Goldman Sachs”), serves as investment adviser pursuant to an Investment Management Agreement (the “Agreement”). Under the Agreement, GSAM, subject to the general supervision of the Trust’s Board of Trustees, manages the Fund’s portfolio. As compensation for the services rendered pursuant to the Agreement, the assumption of the expenses related thereto and administering the Fund’s business affairs, including providing facilities, GSAM is entitled to a fee, computed daily and payable monthly, at an annual rate equal to .75% of the average daily net assets of the Fund.

Goldman Sachs has voluntarily agreed to limit “Other Expenses” for the Fund (excluding management fees, Service share fees, distribution and service fees, transfer agent fees, litigation and indemnification costs, taxes, interest, brokerage commissions, and extraordinary expenses) to the extent such expenses exceed .05% of the average daily net assets of the Fund. For the period ended June 30, 2000, the adviser reimbursed approximately $137,000. In addition, the Fund has entered into certain expense offset arrangements with the custodian resulting in a reduction in the Fund’s expenses. For the period ended June 30, 2000, the custody fees were reduced by approximately $1,000 under such arrangements.

Goldman Sachs serves as the Distributor of shares of the Fund pursuant to a Distribution Agreement. Goldman Sachs may receive a portion of the Class A sales load and Class B and Class C contingent deferred sales charges and has advised the Fund that it retained approximately $71,000 for the period ended June 30, 2000.

The Trust, on behalf of the Fund, has adopted Distribution and Service plans. Under the Distribution and Service plans, Goldman Sachs and/or Authorized Dealers are entitled to a monthly fee for distribution and shareholder maintenance services equal, on an annual basis, to .25%, 1.00% and 1.00% of the average daily net assets attributable to Class A, Class B and Class C shares, respectively.

The Trust, on behalf of the Fund, has adopted a Service Plan. This Plan allows for Service shares to compensate service organizations for providing varying levels of account administration and shareholder liaison services to their customers who are beneficial owners of such shares. The Service Plan provides for compensation to the service organizations in an amount up to .50% (on an annualized basis), of the average daily net asset value of the Service shares.

Goldman Sachs also serves as the Transfer Agent of the Fund for a fee. Fees charged for such transfer agency services are calculated daily and payable monthly at an annual rate as follows: .19% of the average daily net assets for Class A, Class B and Class C shares and .04% of the average daily net assets for Institutional and Service shares.

At June 30, 2000, the Fund owed approximately $57,000, $35,000 and $11,000 for Management, Distribution and Service and Transfer Agent fees, respectively.

4.  PORTFOLIO SECURITIES TRANSACTIONS

Purchases and proceeds of sales or maturities of securities (excluding short-term investments) for the period ended June 30, 2000, were $44,704,521 and $1,207,362, respectively.

For the period ended June 30, 2000, Goldman Sachs earned no brokerage commissions from portfolio transactions.

Futures Contracts — The Fund may enter into futures transactions to hedge against changes in interest rates, securities prices, or to seek to increase total return. Upon entering into a futures contract, the Fund is required to deposit with a broker an amount of cash or securities equal to the minimum “initial margin” requirement of the associated futures exchange. Subsequent payments for futures contracts (“variation margin”) are paid or received by the Fund daily, dependent 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 Statements of Operations.

4.  PORTFOLIO SECURITIES TRANSACTIONS (continued)

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

For the period ended June 30, 2000, CORE Tax-Managed Equity incurred commission expenses of approximately $700, in connection with futures contracts entered into with Goldman Sachs.

At June 30, 2000, the following futures contracts were as follows:

Type		Numbers of Contracts Long		Settlement Month		Market Value		Unrealized loss
S&P 500 Index		14		Sep-00		$4,844,725		($24,729)

5.  REPURCHASE AGREEMENTS

During the term of a repurchase agreement, the value of the underlying securities, including accrued interest, is required to equal or exceed the value of the repurchase agreement. The underlying securities for all repurchase agreements are held in safekeeping by a custodian.

6.  JOINT REPURCHASE AGREEMENT ACCOUNT

The Fund, together with other registered investment companies having management 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 June 30, 2000, the Fund had an undivided interest in the repurchase agreement in the following joint account which equaled $3,300,000 in principal amount. At June 30, 2000, the following repurchase agreements held in this joint account were fully collateralized by Federal Agency obligations.

Repurchase Agreements		Principal Amount		Interest Rate			Maturity Date		Amortized Cost		Maturity Value
ABN/AMRO, Inc.		$995,900,000		6.85	%		07/03/2000		$  995,900,000		$  996,468,493
Banc of America Securities LLC		800,000,000		6.88			07/03/2000		800,000,000		800,458,667
Bear Stearns Companies, Inc.		500,000,000		6.85			07/03/2000		500,000,000		500,285,417
Donaldson, Lufkin & Jenrette, Inc.		500,000,000		6.90			07/03/2000		500,000,000		500,287,500
TOTAL JOINT REPURCHASE AGREEMENT ACCOUNT II									$2,795,900,000		$2,797,500,077

7.  LINE OF CREDIT FACILITY

Effective May 31, 2000, the Fund participates in a $350,000,000 committed, unsecured revolving line of credit facility. Prior thereto, the Fund participated in a $250,000,000 uncommitted and a $250,000,000 committed, unsecured revolving line of credit facility. Under the most restrictive arrangement, the Fund must own securities having a market value in excess of 400% of the total bank borrowings. This facility is to be used solely for temporary or emergency purposes. The interest rate on borrowings is based on the Federal Funds rate. The committed facility also requires a fee to be paid by the Fund based on the amount of the commitment which has not been utilized. During the period ended June 30, 2000, the Fund did not have any borrowings under these facilities.

8.  SUMMARY OF SHARE TRANSACTIONS

Share activity is as follows:

		For the Period Ended June 30, 2000 (a)
		Shares			Dollars
Class A Shares
Shares sold		1,871,904			$18,171,194
Shares repurchased		(12,114	)		(116,920	)
		1,859,790			18,054,274
Class B Shares
Shares sold		1,421,369			13,810,460
Shares repurchased		(35,198	)		(352,558	)
		1,386,171			13,457,902
Class C Shares
Shares sold		986,391			9,598,930
Shares repurchased		(1,995	)		(19,295	)
		984,396			9,579,635
Institutional Shares
Shares sold		1,088,129			10,856,998
Shares repurchased		(205,897	)		(2,009,384	)
		882,232			8,847,614
Service Shares
Shares sold		150			1,500
Shares repurchased		—			—
		150			1,500
NET INCREASE		5,112,739			$49,940,925

(a)	Commencement of operations was April 3, 2000 for all classes.

				Income (loss) from investment operations(a)
		Net asset value, beginning of period		Net investment income(e)		Net realized and unrealized loss(e)			Net decrease in net asset value			Net asset value, end of period
FOR THE PERIOD ENDED JUNE 30, (Unaudited)
2000 - Class A Shares (commenced April 3)		$10.00		$0.07		$(0.30	)		$(0.23	)		$9.77
2000 - Class B Shares (commenced April 3)		10.00		0.06		(0.30	)		(0.24	)		9.76
2000 - Class C Shares (commenced April 3)		10.00		0.06		(0.32	)		(0.26	)		9.74
2000 - Institutional Shares (commenced April 3)		10.00		0.09		(0.32	)		(0.23	)		9.77
2000 - Service Shares (commenced April 3)		10.00		0.08		(0.32	)		(0.24	)		9.76

(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.

											Ratios assuming no expense limitations
Total return(b)(d)			Net assets at end of period (in 000s)		Ratio of net expenses to average net assets(c)			Ratio of net investment income to average net assets(c)			Ratio of expenses to average net assets(c)			Ratio of net investment income to average net assets(c)			Portfolio turnover rate(d)
(2.30	)%		$ 18,167		1.24	%		2.96	%		3.06	%		1.14	%		3.59%
(2.40	)		13,528		1.99			2.61			3.81			0.79			3.59
(2.60	)		9,592		1.99			2.46			3.81			0.64			3.59
(2.30	)		8,619		0.84			3.68			2.66			1.86			3.59
(2.40	)		1		1.34			3.41			3.16			1.59			3.59

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	Peter Fortner, Assistant Treasurer
William H. Springer	Philip V. Giuca, Jr., Assistant Treasurer
Richard P. Strubel	Michael J. Richman, Secretary
	Howard B. Surloff, Secretary
	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.

Of course, no assurance can be offered that the Fund’s tax-managed strategies will reduce the amount of taxable income and capital gains distributed by the fund to shareholders. Because the Fund’ s tax-managed strategies may overlap them to some extent, the Fund is not a suitable investment for IRAs or other tax-exempt or tax-deferred accounts. Potential investors are strongly encouraged to consult with their tax advisors to determine whether a tax-managed product is suitable for their investment portfolio.

CORE^SM is a service mark of Goldman, Sachs & Co.

Goldman, Sachs & Co. is the distributor of the Fund.

Copyright 2000 Goldman, Sachs & Co. All rights reserved. Date of first use: August 29, 2000

00-1170 / CORETXSAR / 12K / 8-00