-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EcktOVBO2Fxg9Yk0A5R3DdEX+PCFLHVp25dTwEaEWhUe3mDDGrZDE5MlTZTGDNKL wfWrrZgR1PGdH2nwnrGGOw== 0000950123-10-046286.txt : 20100507 0000950123-10-046286.hdr.sgml : 20100507 20100507145843 ACCESSION NUMBER: 0000950123-10-046286 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 23 CONFORMED PERIOD OF REPORT: 20100228 FILED AS OF DATE: 20100507 DATE AS OF CHANGE: 20100507 EFFECTIVENESS DATE: 20100507 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GOLDMAN SACHS TRUST CENTRAL INDEX KEY: 0000822977 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-05349 FILM NUMBER: 10811970 BUSINESS ADDRESS: STREET 1: 4900 SEARS TWR STREET 2: C/O GOLDMAN SACHS & CO CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3126554400 MAIL ADDRESS: STREET 1: 85 BROAD ST STREET 2: 85 BROARD STREET CITY: NEW YORK STATE: NY ZIP: 10004 FORMER COMPANY: FORMER CONFORMED NAME: GOLDMAN SACHS SHORT INTERMEDIATE GOVERNMENT FUND DATE OF NAME CHANGE: 19910711 FORMER COMPANY: FORMER CONFORMED NAME: SHORT INTERMEDIATE GOVERNMENT FUND DATE OF NAME CHANGE: 19900104 0000822977 S000018561 Goldman Sachs Retirement Strategy 2010 Portfolio C000051506 Class A GRCAX C000051507 Institutional GRCIX C000051508 Service GRCSX C000058998 Class R C000058999 Class IR 0000822977 S000018562 Goldman Sachs Retirement Strategy 2015 Portfolio C000051509 Class A GRDAX C000051510 Institutional GRDIX C000051511 Service GRDSX C000059000 Class R C000059001 Class IR 0000822977 S000018563 Goldman Sachs Retirement Strategy 2020 Portfolio C000051512 Class A GRJAX C000051513 Institutional GRJIX C000051514 Service GRJSX C000059002 Class R C000059003 Class IR 0000822977 S000018564 Goldman Sachs Retirement Strategy 2030 Portfolio C000051515 Class A GRLAX C000051516 Institutional GRLIX C000051517 Service GRLSX C000059004 Class R C000059005 Class IR 0000822977 S000018565 Goldman Sachs Retirement Strategy 2040 Portfolio C000051518 Class A GRNAX C000051519 Institutional GRNIX C000051520 Service GRNSX C000059006 Class IR C000059007 Class R 0000822977 S000018566 Goldman Sachs Retirement Strategy 2050 Portfolio C000051521 Class A GRPAX C000051522 Institutional GRPIX C000051523 Service GRPSX C000059008 Class R C000059009 Class IR N-CSRS 1 y83079nvcsrs.htm N-CSRS nvcsrs

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05349


Goldman Sachs Trust


(Exact name of registrant as specified in charter)

71 South Wacker Drive, Chicago, Illinois 60606


(Address of principal executive offices) (Zip code)
     
Peter V. Bonanno, Esq.   Copies to:
Goldman, Sachs & Co.   Jack W. Murphy, Esq.
200 West Street   Dechert LLP
New York, NY 10282   1775 I Street, NW
    Washington, D.C. 20006

(Name and address of agents for service)

Registrant’s telephone number, including area code: (312) 655-4400


Date of fiscal year end: August 31


Date of reporting period: February 28, 2010


     
ITEM 1.   REPORTS TO STOCKHOLDERS.
     
    The Semi-Annual Report to Stockholders is filed herewith.

 


 

Goldman Sachs Funds
 
 
 
       
       
Semi-Annual Report
    February 28, 2010
        
       
       
      Retirement Strategies Portfolios
      Retirement Strategy 2010 Portfolio
      Retirement Strategy 2015 Portfolio
      Retirement Strategy 2020 Portfolio
      Retirement Strategy 2030 Portfolio
      Retirement Strategy 2040 Portfolio
      Retirement Strategy 2050 Portfolio
       
 
 


 

Goldman Sachs Retirement Strategies Portfolios
 
 
n  GOLDMAN SACHS RETIREMENT STRATEGY 2010 PORTFOLIO  
 
n  GOLDMAN SACHS RETIREMENT STRATEGY 2015 PORTFOLIO  
 
n  GOLDMAN SACHS RETIREMENT STRATEGY 2020 PORTFOLIO  
 
n  GOLDMAN SACHS RETIREMENT STRATEGY 2030 PORTFOLIO  
 
n  GOLDMAN SACHS RETIREMENT STRATEGY 2040 PORTFOLIO  
 
n  GOLDMAN SACHS RETIREMENT STRATEGY 2050 PORTFOLIO  
 
 
TABLE OF CONTENTS
 
     
Principal Investment Strategies and Risks
  1
Investment Process
  2
Market Review
  4
Portfolio Management Discussion and Performance Summaries
  5
Schedules of Investments
  20
Financial Statements
  26
Notes to Financial Statements
  33
Financial Highlights
  46
Other Information
  58
 
 
 
 
             
NOT FDIC-INSURED
    May Lose Value     No Bank Guarantee
             


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

Principal Investment Strategies and Risks
 
The Retirement Strategies Portfolios are expected to invest all of their assets in a combination of affiliated underlying equity and fixed income funds (“Underlying Funds”). Because the Portfolios are subject to the Underlying Fund expenses as well as their own expenses, the cost of this type of investment may be higher than a mutual fund that only invests in stocks and bonds. The risk factors to which the Portfolios are subject are proportionate to the amount of assets they allocate to each Underlying Fund. As the Portfolios are further away from their target date, the Portfolios will have a higher allocation to equity investments and will therefore have greater risk exposure to those risks associated with equity investments. As the Portfolios approach their individual target date, their asset allocations will shift so that they invest a greater percentage of their assets in underlying fixed income funds. The Portfolios will then be more susceptible to the risks associated with fixed income investments.
 
Some of the risk factors associated with many of the underlying equity funds include the volatility of U.S. and non-U.S. equity investments, including Real Estate Investment Trusts (“REITs”); the illiquidity associated with investments in small-capitalization companies; and the political, economic and currency risks of non-U.S. securities, which are particularly significant with respect to equities of issuers located in emerging markets. Some of the risk factors associated with many of the underlying fixed income funds include prepayment, credit and interest rate risk; the price fluctuations of U.S. government securities in response to changes in interest rates and inflation; the credit risk and volatility of high yield bonds; the volatility of investments in commodities; the political, economic and currency risks of non-U.S. securities, which are particularly significant with respect to issuers located in emerging markets; and financial risks associated with derivative investments.
 
Each Portfolio employs an asset allocation strategy designed for investors planning to retire in approximately the calendar year designated in the Portfolio’s name (target date). Approximately five years after a Portfolio’s target date, the Portfolio expects that it will become part of another mutual fund managed by the Investment Adviser, the Goldman Sachs Income Strategies Portfolio, which has a current target allocation of approximately 60% of total assets in fixed income and 40% of total assets in equity. The principal value of a Portfolio is not guaranteed at any time, including at the target date.
 
 
 
1 


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

What Differentiates Goldman Sachs’
Approach to Retirement Strategies?
 
We believe that strong, consistent investment results through asset allocation are best achieved through teams of experts working together on a global scale.
 
         
         
         
         
 
 


(CHART)
   
   
   n Goldman Sachs’ Quantitative Investment Strategies Team determines the strategic and quarterly tactical asset allocations. The team is comprised of over 110 professionals with significant academic and practitioner experience.

 n Goldman Sachs’ Portfolio Management Teams offer expert management of the underlying Goldman Sachs mutual funds in which each Retirement Strategy Portfolio (each, a “Portfolio”) invests. These same teams manage portfolios for institutional and high net worth investors.

Goldman Sachs Asset Allocation Investment Process
   
  (GRAPHIC)
 
Quantitative Investment Strategies Team
Each Retirement Strategy Portfolio represents a diversified global portfolio on the efficient frontier. Aimed at helping investors reach their retirement goals, each Portfolio is designed to invest within a specified equity and fixed income range, becoming more conservative as the Portfolio reaches its target date. The long-term strategic asset allocation is the primary source of risk and the corresponding primary determinant of total return. It therefore represents an anchor, or neutral starting point, from which tactical asset allocation decisions are made.
   
  (GRAPHIC)
 
Quantitative Investment Strategies Team
For each Portfolio, the strategic asset allocation is combined with a measured amount of tactical risk. Changing market conditions create opportunities to capitalize on investing in different countries and asset classes relative to others over time. Within each Portfolio, we shift assets away from the strategic allocation (over and underweighting certain asset classes and countries) to seek to benefit from changing conditions in global capital markets.
Using proprietary portfolio construction models to maintain each Portfolio’s original risk/return profile over time, the team makes nine active decisions based on its current outlook on global equity, fixed income and currency markets.
   
n Asset class selection
  Are stocks, bonds or cash more attractive?
   
n Regional equity selection
  Are U.S. or non-U.S. equities more attractive?
   
n Regional bond selection
  Are U.S. or non-U.S. bonds more attractive?
   
n U.S. equity style selection
  Are U.S. value or U.S. growth equities more attractive?
   
n U.S. equity size selection
  Are U.S. large-cap or U.S. small-cap equities more attractive?
   
n Developed equity country selection
  Which developed international countries are most attractive?
   
n Emerging equity country selection
  Which emerging countries are most attractive?
   
n High yield selection
  Are high yield or core fixed income securities more attractive?
   
n Emerging/developed equity selection
  Are emerging or developed equities more attractive?
 
 
 
 2


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

 
     
    (GRAPHIC)
    Mutual Fund Portfolio Management Teams
Each Portfolio is comprised of underlying Goldman Sachs Mutual Funds managed by broad, deep portfolio management teams. In addition to global tactical asset allocation, we seek to generate excess returns through security selection within each underlying mutual fund. Whether in the equity or fixed income arenas, these portfolio management teams share a commitment to firsthand fundamental research and seek performance driven by successful security selection.
 
     
   
  Enhancements Made to Proprietary Quantitative Model during
the Six-Month Period Ended February 28, 2010

To construct the Retirement Strategies Portfolios, the Quantitative Investment Strategies (“QIS”) Team makes active decisions based on its current outlook on global equity, fixed income and currency markets. On a quarterly basis, in order to benefit from changing conditions in global capital markets, the QIS Team shifts assets away from the existing allocation (i.e., tilting the Portfolios’ positions in certain asset classes and countries from their strategic, long-term weights). During the semi-annual period ended February 28, 2010, the QIS Team added allocations to fundamental equity funds — the Goldman Sachs Large Cap Value Fund and the Goldman Sachs Strategic Growth Fund. The QIS Team believes these two funds will allow it to leverage insights across fundamental and quantitative investment methodologies and further diversify the Retirement Strategies Portfolios’ active risk. In addition, the QIS Team replaced the Goldman Sachs Emerging Markets Equity Fund as an Underlying Fund with the Goldman Sachs Structured Emerging Markets Equity Fund. This change should help the QIS Team more fully incorporate its tactical views through bottom-up security selection and top-down country selection.
 
 
 
3 


 

MARKET REVIEW
 
 

Goldman Sachs Retirement Strategies Portfolios
 
 
Market Review
 
Overall, global stock and bond markets rallied during the six months ended February 28, 2010 (the “Reporting Period”). Several factors drove the markets higher, including optimism about economic recovery in the U.S. and around the world. In the United States, the Gross Domestic Product (“GDP”) advanced in both the third and fourth calendar quarters of 2009. Credit markets continued to display improved liquidity, while interest rates remained at low levels. Also in the U.S., the Federal Reserve (the “Fed”) began to scale back the support programs it had established to enhance liquidity in the credit markets and raised the discount rate (i.e., the rate the Fed charges to banks for short-term loans). Meanwhile, a falling U.S. dollar boosted commodity stocks and the stocks of companies doing a majority of their business outside the United States.
 
The U.S. equity market, as represented by the Standard & Poors 500® Index (with dividends reinvested) (“S&P 500® Index”), posted a return of 9.32% during the Reporting Period. Non-U.S. equity markets, as represented by the Morgan Stanley Capital International Europe, Australasia and Far East Index (net of withholding) (“MSCI EAFE Index (Net)”), rose 0.72%. Global fixed income markets experienced significant gains, as investors sought higher yields. In the U.S. bond market, credit spreads — the difference in yields between U.S. corporate bonds and duration-equivalent U.S. Treasury securities — narrowed as almost every sector outperformed U.S. Treasuries.
 
Regional and Sector Preferences
 
Equities
 
n Regional — During the Reporting Period, the QIS Team was bullish on equities versus fixed income primarily because of their attractive long-term valuations. The QIS Team favored international equities versus U.S. equities until the beginning of 2010 when supportive macroeconomic conditions and strong momentum in U.S. stocks led to a shift in preference for U.S. equities over international equities. The QIS Team was also bullish on emerging market equities over developed market equities because of their persistently high compensation for risk and strong momentum compared to the stocks of developed nations.
 
The QIS Team implemented its country level views within the Goldman Sachs Structured International Equity Fund and the Goldman Sachs Structured Emerging Markets Equity Fund, which served as two of the Portfolios’ Underlying Funds.
 
n Style and Size — Among U.S. equities, the Portfolios were overweighted U.S. value stocks because they appeared inexpensive relative to U.S. growth stocks. Throughout the Reporting Period, the Portfolios maintained an overweight to small-cap equities relative to large-cap equities. The QIS Team believed small-cap stocks provided more attractive compensation for risk and were relatively inexpensive when compared to large-cap stocks. The QIS Team also thought macroeconomic conditions were more supportive for growth in small-cap stocks than in large-cap stocks.
 
Fixed Income
 
The QIS Team preferred international fixed income over U.S. fixed income as a result of supportive macroeconomic conditions abroad and less expensive valuations. Within U.S. fixed income, the QIS Team favored U.S. high yield bonds versus investment-grade bonds because of strong short-term momentum and a supportive interest rate environment.
 
 
 
 4


 

PORTFOLIO RESULTS
 
 

Goldman Sachs Retirement Strategies Portfolios
 
Portfolio Management Discussion and Analysis
Below, the Goldman Sachs Quantitative Investment Strategies Team discusses the Retirement Strategies Portfolios’ performance and positioning for the Reporting Period.
 
How did the Retirement Strategies Portfolios (the “Portfolios”) perform during the Reporting Period?
 
A  Goldman Sachs Retirement Strategy 2010 Portfolio — During the Reporting Period, the Portfolio’s Class A, Institutional, IR and R Shares generated cumulative total returns of 5.85%, 6.01%, 6.02% and 5.83%, respectively. This compares to the 4.27% cumulative total return of the Portfolio’s blended benchmark, which is comprised of the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index and the MSCI EAFE Index (Net), during the same period.
 
Goldman Sachs Retirement Strategy 2015 Portfolio — During the Reporting Period, the Portfolio’s Class A, Institutional, IR and R Shares generated cumulative total returns of 5.93%, 6.07%, 6.09% and 5.67%, respectively. This compares to the 4.41% cumulative total return of the Portfolio’s blended benchmark, which is comprised of the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index and the MSCI EAFE Index (Net), during the same period.
 
Goldman Sachs Retirement Strategy 2020 Portfolio — During the Reporting Period, the Portfolio’s Class A, Institutional, IR and R Shares generated cumulative total returns of 5.81%, 6.12%, 5.98% and 5.72%, respectively. This compares to the 4.53% cumulative total return of the Portfolio’s blended benchmark, which is comprised of the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index and the MSCI EAFE Index (Net), during the same period.
 
Goldman Sachs Retirement Strategy 2030 Portfolio — During the Reporting Period, the Portfolio’s Class A, Institutional, IR and R Shares generated cumulative total returns of 5.91%, 6.02%, 5.89% and 5.79%, respectively. This compares to the 4.70% cumulative total return of the Portfolio’s blended benchmark, which is comprised of the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index and the MSCI EAFE Index (Net), during the same period.
 
Goldman Sachs Retirement Strategy 2040 Portfolio — During the Reporting Period, the Portfolio’s Class A, Institutional, IR and R Shares generated cumulative total returns of 5.82%, 5.94%, 5.97% and 5.70%, respectively. This compares to the 4.78% cumulative total return of the Portfolio’s blended benchmark which is comprised of the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index and the MSCI EAFE Index (Net), during the same period.
 
Goldman Sachs Retirement Strategy 2050 Portfolio — During the Reporting Period, the Portfolio’s Class A, Institutional, IR and R Shares generated cumulative total returns of 5.74%, 5.99%, 6.01% and 5.49%, respectively. This compares to the 4.86% cumulative total return of the Portfolio’s blended benchmark, which is comprised of the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index and the MSCI EAFE Index (Net), during the same period.
 
The components of the Portfolios’ blended benchmarks generated cumulative total returns of 9.32%, 3.19% and 0.72% for the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index and the MSCI EAFE Index (Net), respectively, during the same period. The differing returns of the Portfolios’ blended benchmarks reflect the varying percentages of the components comprising each blended benchmark.
 
What key factors affected the Portfolios’ semi-annual performance?
 
A  During the Reporting Period, all six Retirement Strategies Portfolios experienced strong positive results. During the fourth quarter of 2009, our quarterly tactical decisions did not impact the Portfolios’ relative performance significantly but the performance of the Underlying Funds detracted from results. From January 1, 2010 through February 28, 2010, the performance of the Underlying Funds enhanced the Portfolios’ relative results and our quarterly tactical decisions contributed positively to the performance of five of the six Portfolios.
 
 
 
5 


 

PORTFOLIO RESULTS
 
 

 
How did Global Tactical Asset Allocation decisions help or hurt the Portfolios’ performance during the Reporting Period?
 
A  During the fourth quarter of 2009, our quarterly tactical views had a relatively neutral impact on the Portfolios’ performance. For the final two months of the Reporting Period from January 1, 2010 through February 28, 2010, the implementation of our quarterly tactical views contributed positively to the Goldman Sachs Retirement Strategy 2010 Portfolio, the Goldman Sachs Retirement Strategy 2015 Portfolio, the Goldman Sachs Retirement Strategy 2020 Portfolio, the Goldman Sachs Retirement Strategy 2040 Portfolio and the Goldman Sachs Retirement Strategy 2050 Portfolio. They detracted from the results of the Goldman Sachs Retirement Strategy 2030 Portfolio.
 
More specifically, during the fourth quarter of 2009, the Portfolios benefited from their overweighted allocation to equities over fixed income. The selloff in risky assets, which began in 2008, increased the risk premium of certain asset classes, including emerging market equities and small-cap equities. These asset classes performed well when investors’ risk appetite returned during 2009. However, as equity prices dropped in early 2010, the Portfolios’ equity position hampered progress and detracted from relative performance between January 1, 2010 and February 28, 2010. For the Reporting Period as a whole, however, the overweight in equities generally contributed to the Portfolios’ positive performance.
 
Our preference for small-cap stocks versus large-cap stocks provided mixed results. It contributed positively to the Portfolios’ results during the first two months of 2010, but detracted during the fourth quarter 2009. During the Reporting Period, the Portfolios’ overweighted allocation to emerging market equities versus developed market equities contributed to relative performance. The Portfolios’ overweighted position in value equities over growth equities added to results during the first two months of 2010 but detracted during the fourth quarter of 2009.
 
In fixed income, the Portfolios’ modestly overweighted position in high yield bonds versus investment-grade bonds contributed slightly to performance during the six-month Reporting Period. Our preference for U.S. fixed income versus international fixed income had a neutral impact on semi-annual results.
 
How did the Portfolios’ Underlying Funds perform relative to their respective benchmark indices during the Reporting Period?
 
A  Among underlying equity funds, the Goldman Sachs Structured Small Cap Equity Fund and the Goldman Sachs International Real Estate Securities Fund performed best relative to their respective benchmark indices. The Goldman Sachs Structured International Equity Fund underperformed the most relative to its benchmark index.
 
On the fixed income side, the Goldman Sachs Core Fixed Income Fund and the Goldman Sachs Global Income Fund performed the best relative to their respective benchmark indices. The Goldman Sachs Local Emerging Markets Debt Fund underperformed the most relative to its benchmark index during the Reporting Period.
 
What tactical changes did you make during the Reporting Period within both the equity and fixed income portions of the Portfolios?
 
A  Although we continued to favor equities over fixed income, we tempered this preference during the Reporting Period. We began the Reporting Period with a bias toward international equities, becoming slightly bullish on U.S. equities toward the end of the Reporting Period. We moderated our strong bullish views on small-cap stocks versus large-cap stocks.
 
In fixed income, we became progressively more bullish on non-U.S. fixed income versus U.S. fixed income during the Reporting Period.
 
 
 
 6


 

PORTFOLIO RESULTS
 
 

 
What was the Portfolios’ tactical view and strategy at the end of the Reporting Period?
 
A  As of February 28, 2010, we held a moderately bullish view on stocks relative to bonds. In the U.S. equity market, the Portfolios were slightly overweight in value stocks relative to growth stocks and small-cap stocks versus large-cap stocks. The Portfolios were modestly overweight emerging market equities relative to developed market equities. We favored international fixed income over U.S. fixed income and high yield bonds over investment-grade fixed income.
 
 
 
7 


 

FUND BASICS
 
 

Retirement Strategy 2010 Portfolio
as of February 28, 2010
 
[GRAPHIC]
PERFORMANCE REVIEW
 
             
September 1, 2009–February 28, 2010   Portfolio Total Return (based on NAV)1      
 
Class A
    5.85 %    
Institutional
    6.01      
Class IR
    6.02      
Class R
    5.83      
1 The net asset value (NAV) represents the net assets of the class of the Portfolio (ex-dividend) divided by the total number of shares of the class outstanding. The Portfolio’s performance assumes the reinvestment of dividends and other distributions. The Portfolio’s performance does not reflect the deduction of any applicable sales charges.
 
STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS2
 
                         
For the period ended 12/31/09   One Year     Since Inception     Inception Date    
 
Class A
    18.77 %     -7.31 %   9/5/07    
Institutional
    25.92       -4.65     9/5/07    
Class IR
    25.80       -6.61     11/30/07    
Class R
    25.21       -7.05     11/30/07    
2 The Standardized Average Annual Total Returns are average annual total returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 5.5% for Class A Shares. Because Institutional, Class IR and Class R Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns.
 
The returns represent past performance. Past performance does not guarantee future results. The Portfolio’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Website at www.goldmansachsfunds.com to obtain the most recent month-end returns. Performance reflects expense limitations in effect. In their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.
 
EXPENSE RATIOS3
 
                     
    Net Expense Ratio (Current)     Gross Expense Ratio (Before Waivers)      
 
Class A
    1.25 %     3.98 %    
Institutional
    0.85       3.58      
Class IR
    1.00       3.73      
Class R
    1.50       4.23      
3 The expense ratios of the Portfolio, both current (net of applicable fee waivers and/or expense limitations) and before waivers (gross of applicable fee waivers and/or expense limitations), are as set forth above according to the most recent publicly available Prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights in this report due to Underlying Fund fees and expenses. Applicable waivers and expense limitations are voluntary and may be modified or terminated at any time at the option of the investment adviser. If this occurs, the expense ratios may change without shareholder approval.
 
 
 
 8


 

FUND BASICS
 
 


 
OVERALL UNDERLYING FUND WEIGHTINGS4
 
 
Percentage of Net Assets
 
(EQUITY SECTOR ALLOCATION BAR CHART)
 
4 The percentage shown for each Underlying Fund reflects the value of that Underlying Fund as a percentage of net assets. Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.
 
 
 
9 


 

FUND BASICS
 
 

Retirement Strategy 2015 Portfolio
as of February 28, 2010
 
[GRAPHIC]
PERFORMANCE REVIEW
 
             
September 1, 2009–February 28, 2010   Portfolio Total Return (based on NAV)1      
 
Class A
    5.93 %    
Institutional
    6.07      
Class IR
    6.09      
Class R
    5.67      
1 The net asset value (NAV) represents the net assets of the class of the Portfolio (ex-dividend) divided by the total number of shares of the class outstanding. The Portfolio’s performance assumes the reinvestment of dividends and other distributions. The Portfolio’s performance does not reflect the deduction of any applicable sales charges.
 
STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS2
 
                         
For the period ended 12/31/09   One Year     Since Inception     Inception Date    
 
Class A
    19.62 %     -8.84 %   9/5/07    
Institutional
    27.07       -6.26     9/5/07    
Class IR
    27.12       -8.22     11/30/07    
Class R
    26.41       -8.70     11/30/07    
2 The Standardized Average Annual Total Returns are average annual total returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 5.5% for Class A Shares. Because Institutional, Class IR and Class R Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns.
 
The returns represent past performance. Past performance does not guarantee future results. The Portfolio’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Website at www.goldmansachsfunds.com to obtain the most recent month-end returns. Performance reflects expense limitations in effect. In their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.
 
EXPENSE RATIOS3
 
                     
    Net Expense Ratio (Current)     Gross Expense Ratio (Before Waivers)      
 
Class A
    1.26 %     4.07 %    
Institutional
    0.86       3.67      
Class IR
    1.01       3.82      
Class R
    1.51       4.32      
3 The expense ratios of the Portfolio, both current (net of applicable fee waivers and/or expense limitations) and before waivers (gross of applicable fee waivers and/or expense limitations), are as set forth above according to the most recent publicly available Prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights in this report due to Underlying Fund fees and expenses. Applicable waivers and expense limitations are voluntary and may be modified or terminated at any time at the option of the investment adviser. If this occurs, the expense ratios may change without shareholder approval.
 
 
 
 10


 

FUND BASICS
 
 


 
OVERALL UNDERLYING FUND WEIGHTINGS4
 
 
Percentage of Net Assets
 
(EQUITY SECTOR ALLOCATION BAR CHART)
 
4 The percentage shown for each Underlying Fund reflects the value of that Underlying Fund as a percentage of net assets. Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.
 
 
 
11 


 

FUND BASICS
 
 

Retirement Strategy 2020 Portfolio
as of February 28, 2010
 
[GRAPHIC]
PERFORMANCE REVIEW
 
             
September 1, 2009–February 28, 2010   Portfolio Total Return (based on NAV)1      
 
Class A
    5.81 %    
Institutional
    6.12      
Class IR
    5.98      
Class R
    5.72      
1 The net asset value (NAV) represents the net assets of the class of the Portfolio (ex-dividend) divided by the total number of shares of the class outstanding. The Portfolio’s performance assumes the reinvestment of dividends and other distributions. The Portfolio’s performance does not reflect the deduction of any applicable sales charges.
 
STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS2
 
                         
For the period ended 12/31/09   One Year     Since Inception     Inception Date    
 
Class A
    20.51 %     -10.19 %   9/5/07    
Institutional
    28.06       -7.60     9/5/07    
Class IR
    27.73       -9.69     11/30/07    
Class R
    27.20       -10.11     11/30/07    
2 The Standardized Average Annual Total Returns are average annual total returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 5.5% for Class A Shares. Because Institutional, Class IR and Class R Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns.
 
The returns represent past performance. Past performance does not guarantee future results. The Portfolio’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Website at www.goldmansachsfunds.com to obtain the most recent month-end returns. Performance reflects expense limitations in effect. In their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.
 
EXPENSE RATIOS3
 
                     
    Net Expense Ratio (Current)     Gross Expense Ratio (Before Waivers)      
 
Class A
    1.27 %     3.84 %    
Institutional
    0.87       3.44      
Class IR
    1.02       3.59      
Class R
    1.52       4.09      
3 The expense ratios of the Portfolio, both current (net of applicable fee waivers and/or expense limitations) and before waivers (gross of applicable fee waivers and/or expense limitations), are as set forth above according to the most recent publicly available Prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights in this report due to Underlying Fund fees and expenses. Applicable waivers and expense limitations are voluntary and may be modified or terminated at any time at the option of the investment adviser. If this occurs, the expense ratios may change without shareholder approval.
 
 
 
 12


 

FUND BASICS
 
 


 
OVERALL UNDERLYING FUND WEIGHTINGS4
 
 
Percentage of Net Assets
 
(EQUITY SECTOR ALLOCATION BAR CHART)
 
4 The percentage shown for each Underlying Fund reflects the value of that Underlying Fund as a percentage of net assets. Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.
 
 
 
13 


 

FUND BASICS
 
 

Retirement Strategy 2030 Portfolio
as of February 28, 2010
 
[GRAPHIC]
PERFORMANCE REVIEW
 
             
September 1, 2009–February 28, 2010   Portfolio Total Return (based on NAV)1      
 
Class A
    5.91 %    
Institutional
    6.02      
Class IR
    5.89      
Class R
    5.79      
1 The net asset value (NAV) represents the net assets of the class of the Portfolio (ex-dividend) divided by the total number of shares of the class outstanding. The Portfolio’s performance assumes the reinvestment of dividends and other distributions. The Portfolio’s performance does not reflect the deduction of any applicable sales charges.
 
STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS2
 
                         
For the period ended 12/31/09   One Year     Since Inception     Inception Date    
 
Class A
    21.39 %     -11.97 %   9/5/07    
Institutional
    29.03       -9.48     9/5/07    
Class IR
    29.10       -11.56     11/30/07    
Class R
    28.14       -12.05     11/30/07    
2 The Standardized Average Annual Total Returns are average annual total returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 5.5% for Class A Shares. Because Institutional, Class IR and Class R Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns.
 
The returns represent past performance. Past performance does not guarantee future results. The Portfolio’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Website at www.goldmansachsfunds.com to obtain the most recent month-end returns. Performance reflects expense limitations in effect. In their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.
 
EXPENSE RATIOS3
 
                     
    Net Expense Ratio (Current)     Gross Expense Ratio (Before Waivers)      
 
Class A
    1.29 %     3.52 %    
Institutional
    0.89       3.12      
Class IR
    1.04       3.27      
Class R
    1.54       3.77      
3 The expense ratios of the Portfolio, both current (net of applicable fee waivers and/or expense limitations) and before waivers (gross of applicable fee waivers and/or expense limitations), are as set forth above according to the most recent publicly available Prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights in this report due to Underlying Fund fees and expenses. Applicable waivers and expense limitations are voluntary and may be modified or terminated at any time at the option of the investment adviser. If this occurs, the expense ratios may change without shareholder approval.
 
 
 
 14


 

FUND BASICS
 
 


 
OVERALL UNDERLYING FUND WEIGHTINGS4
 
 
Percentage of Net Assets
 
(EQUITY SECTOR ALLOCATION BAR CHART)
 
4 The percentage shown for each Underlying Fund reflects the value of that Underlying Fund as a percentage of net assets. Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.
 
 
 
15 


 

FUND BASICS
 
 

Retirement Strategy 2040 Portfolio
as of February 28, 2010
 
[GRAPHIC]
PERFORMANCE REVIEW
 
             
September 1, 2009–February 28, 2010   Portfolio Total Return (based on NAV)1      
 
Class A
    5.82 %    
Institutional
    5.94      
Class IR
    5.97      
Class R
    5.70      
1 The net asset value (NAV) represents the net assets of the class of the Portfolio (ex-dividend) divided by the total number of shares of the class outstanding. The Portfolio’s performance assumes the reinvestment of dividends and other distributions. The Portfolio’s performance does not reflect the deduction of any applicable sales charges.
 
STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS2
 
                         
For the period ended 12/31/09   One Year     Since Inception     Inception Date    
 
Class A
    21.97 %     -12.57 %   9/5/07    
Institutional
    29.66       -10.08     9/5/07    
Class IR
    29.49       -12.17     11/30/07    
Class R
    28.93       -12.60     11/30/07    
2 The Standardized Average Annual Total Returns are average annual total returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 5.5% for Class A Shares. Because Institutional, Class IR and Class R Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns.
 
The returns represent past performance. Past performance does not guarantee future results. The Portfolio’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Website at www.goldmansachsfunds.com to obtain the most recent month-end returns. Performance reflects expense limitations in effect. In their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.
 
EXPENSE RATIOS3
 
                     
    Net Expense Ratio (Current)     Gross Expense Ratio (Before Waivers)      
 
Class A
    1.30 %     4.27 %    
Institutional
    0.90       3.87      
Class IR
    1.05       4.02      
Class R
    1.55       4.52      
3 The expense ratios of the Portfolio, both current (net of applicable fee waivers and/or expense limitations) and before waivers (gross of applicable fee waivers and/or expense limitations), are as set forth above according to the most recent publicly available Prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights in this report due to Underlying Fund fees and expenses. Applicable waivers and expense limitations are voluntary and may be modified or terminated at any time at the option of the investment adviser. If this occurs, the expense ratios may change without shareholder approval.
 
 
 
 16


 

FUND BASICS
 
 


 
OVERALL UNDERLYING FUND WEIGHTINGS4
 
 
Percentage of Net Assets
 
(EQUITY SECTOR ALLOCATION BAR CHART)
 
4 The percentage shown for each Underlying Fund reflects the value of that Underlying Fund as a percentage of net assets. Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.
 
 
 
17 


 

FUND BASICS
 
 

Retirement Strategy 2050 Portfolio
as of February 28, 2010
 
[GRAPHIC]
PERFORMANCE REVIEW
 
             
September 1, 2009–February 28, 2010   Portfolio Total Return (based on NAV)1      
 
Class A
    5.74 %    
Institutional
    5.99      
Class IR
    6.01      
Class R
    5.49      
1 The net asset value (NAV) represents the net assets of the class of the Portfolio (ex-dividend) divided by the total number of shares of the class outstanding. The Portfolio’s performance assumes the reinvestment of dividends and other distributions. The Portfolio’s performance does not reflect the deduction of any applicable sales charges.
 
STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS2
 
                         
For the period ended 12/31/09   One Year     Since Inception     Inception Date    
 
Class A
    22.39 %     -13.02 %   9/5/07    
Institutional
    29.91       -10.56     9/5/07    
Class IR
    29.79       -12.75     11/30/07    
Class R
    29.30       -13.16     11/30/07    
2 The Standardized Average Annual Total Returns are average annual total returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 5.5% for Class A Shares. Because Institutional, Class IR and Class R Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns.
 
The returns represent past performance. Past performance does not guarantee future results. The Portfolio’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Website at www.goldmansachsfunds.com to obtain the most recent month-end returns. Performance reflects expense limitations in effect. In their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.
 
EXPENSE RATIOS3
 
                     
    Net Expense Ratio (Current)     Gross Expense Ratio (Before Waivers)      
 
Class A
    1.30 %     5.22 %    
Institutional
    0.90       4.82      
Class IR
    1.05       4.97      
Class R
    1.55       5.47      
3 The expense ratios of the Portfolio, both current (net of applicable fee waivers and/or expense limitations) and before waivers (gross of applicable fee waivers and/or expense limitations), are as set forth above according to the most recent publicly available Prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights in this report due to Underlying Fund fees and expenses. Applicable waivers and expense limitations are voluntary and may be modified or terminated at any time at the option of the investment adviser. If this occurs, the expense ratios may change without shareholder approval.
 
 
 
 18


 

FUND BASICS
 
 


 
OVERALL UNDERLYING FUND WEIGHTINGS4
 
 
Percentage of Net Assets
 
(EQUITY SECTOR ALLOCATION BAR CHART)
 
4 The percentage shown for each Underlying Fund reflects the value of that Underlying Fund as a percentage of net assets. Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities.
 
 
 
19 


 

GOLDMAN SACHS RETIREMENT STRATEGY 2010 PORTFOLIO
 
 

Schedule of Investments
February 28, 2010 (Unaudited)
 
                     
    Shares   Description   Value
 

 Underlying Funds (Institutional Shares)(a) – 100.9%
                     
                     
    Equity – 60.8%
      257,422     Goldman Sachs Structured International Equity Fund – 17.5%   $ 2,430,065  
      153,915     Goldman Sachs Structured Large Cap Value Fund – 10.0%     1,388,310  
      106,520     Goldman Sachs Structured Large Cap Growth Fund – 8.5%     1,174,911  
      105,815     Goldman Sachs Structured Emerging Markets Equity Fund – 5.6%     781,966  
      67,928     Goldman Sachs Structured Small Cap Equity Fund – 4.8%     672,490  
      55,209     Goldman Sachs Large Cap Value Fund – 4.3%     596,262  
      52,631     Goldman Sachs Strategic Growth Fund – 3.6%     495,253  
      60,129     Goldman Sachs Structured International Small Cap Fund – 3.0%     414,890  
      26,954     Goldman Sachs Real Estate Securities Fund – 1.9%     269,271  
      38,151     Goldman Sachs International Real Estate Securities Fund – 1.6%     214,409  
                     
                  8,437,827  
     
     
    Fixed Income – 40.1%
      193,449     Goldman Sachs Inflation Protected Securities Fund – 15.2%     2,116,333  
      117,180     Goldman Sachs Global Income Fund – 10.7%     1,484,669  
      97,565     Goldman Sachs Commodity Strategy Fund – 4.2%     584,414  
      52,508     Goldman Sachs Core Fixed Income Fund – 3.6%     503,556  
      61,864     Goldman Sachs High Yield Fund – 3.1%     428,720  
      19,626     Goldman Sachs Emerging Markets Debt Fund – 1.7%     229,428  
      25,247     Goldman Sachs Local Emerging Markets Debt Fund – 1.6%     226,217  
                     
                  5,573,337  
     
     
    TOTAL UNDERLYING FUNDS
(INSTITUTIONAL SHARES) – 100.9%
    (Cost $12,759,188)   $ 14,011,164  
     
     
                     
   
LIABILITIES IN EXCESS OF
OTHER ASSETS – (0.9)%
    (119,132 )
     
     
    NET ASSETS – 100.0%   $ 13,892,032  
     
     
 
The percentage shown for each investment and investment category reflects the value of the respective investment or category as a percentage of net assets.
 
(a) Represents Affiliated Funds.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 20


 

GOLDMAN SACHS RETIREMENT STRATEGY 2015 PORTFOLIO
 
 

Schedule of Investments
February 28, 2010 (Unaudited)
 
                     
    Shares   Description   Value
 

 Underlying Funds (Institutional Shares)(a) – 100.3%
                     
                     
    Equity – 68.4%
      283,817     Goldman Sachs Structured International Equity Fund – 20.7%   $ 2,679,233  
      162,460     Goldman Sachs Structured Large Cap Value Fund – 11.3%     1,465,387  
      114,492     Goldman Sachs Structured Large Cap Growth Fund – 9.8%     1,262,844  
      105,328     Goldman Sachs Structured Emerging Markets Equity Fund – 6.0%     778,374  
      67,071     Goldman Sachs Structured Small Cap Equity Fund – 5.2%     664,006  
      57,600     Goldman Sachs Large Cap Value Fund – 4.8%     622,085  
      55,965     Goldman Sachs Strategic Growth Fund – 4.1%     526,627  
      58,727     Goldman Sachs Structured International Small Cap Fund – 3.1%     405,217  
      24,635     Goldman Sachs Real Estate Securities Fund – 1.9%     246,104  
      34,769     Goldman Sachs International Real Estate Securities Fund – 1.5%     195,399  
                     
                  8,845,276  
     
     
    Fixed Income – 31.9%
      135,758     Goldman Sachs Inflation Protected Securities Fund – 11.5%     1,485,188  
      95,814     Goldman Sachs Global Income Fund – 9.4%     1,213,960  
      96,791     Goldman Sachs Commodity Strategy Fund – 4.5%     579,775  
      44,097     Goldman Sachs High Yield Fund – 2.3%     305,592  
      16,468     Goldman Sachs Emerging Markets Debt Fund – 1.5%     192,511  
      21,184     Goldman Sachs Local Emerging Markets Debt Fund – 1.5%     189,806  
      16,945     Goldman Sachs Core Fixed Income Fund – 1.2%     162,500  
                     
                  4,129,332  
     
     
    TOTAL UNDERLYING FUNDS
(INSTITUTIONAL SHARES) – 100.3%
    (Cost $12,170,082)   $ 12,974,608  
     
     
   
LIABILITIES IN EXCESS OF
OTHER ASSETS – (0.3)%
    (39,184 )
     
     
                     
    NET ASSETS – 100.0%   $ 12,935,424  
     
     
 
The percentage shown for each investment and investment category reflects the value of the respective investment or category as a percentage of net assets.
 
(a) Represents Affiliated Funds.
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
21 


 

GOLDMAN SACHS RETIREMENT STRATEGY 2020 PORTFOLIO
 
 

Schedule of Investments
February 28, 2010 (Unaudited)
 
                     
    Shares   Description   Value
 

 Underlying Funds (Institutional Shares)(a) – 100.4%
                     
                     
    Equity – 74.9%
      380,213     Goldman Sachs Structured International Equity Fund – 23.4%   $ 3,589,214  
      211,372     Goldman Sachs Structured Large Cap Value Fund – 12.4%     1,906,575  
      151,084     Goldman Sachs Structured Large Cap Growth Fund – 10.9%     1,666,453  
      131,705     Goldman Sachs Structured Emerging Markets Equity Fund – 6.3%     973,299  
      84,633     Goldman Sachs Structured Small Cap Equity Fund – 5.5%     837,862  
      75,709     Goldman Sachs Large Cap Value Fund – 5.3%     817,659  
      74,434     Goldman Sachs Strategic Growth Fund – 4.6%     700,422  
      69,064     Goldman Sachs Structured International Small Cap Fund – 3.1%     476,538  
      28,935     Goldman Sachs Real Estate Securities Fund – 1.9%     289,066  
      41,020     Goldman Sachs International Real Estate Securities Fund – 1.5%     230,535  
                     
                  11,487,623  
     
     
    Fixed Income – 25.5%
      116,463     Goldman Sachs Inflation Protected Securities Fund – 8.3%     1,274,103  
      80,724     Goldman Sachs Global Income Fund – 6.7%     1,022,776  
      113,646     Goldman Sachs Commodity Strategy Fund – 4.4%     680,739  
      51,983     Goldman Sachs High Yield Fund – 2.4%     360,241  
      19,444     Goldman Sachs Emerging Markets Debt Fund – 1.5%     227,307  
      25,009     Goldman Sachs Local Emerging Markets Debt Fund – 1.5%     224,081  
      11,815     Goldman Sachs Core Fixed Income Fund – 0.7%     113,305  
                     
                  3,902,552  
     
     
    TOTAL UNDERLYING FUNDS
(INSTITUTIONAL SHARES) – 100.4%
    (Cost $13,753,821)   $ 15,390,175  
     
     
   
LIABILITIES IN EXCESS OF
OTHER ASSETS – (0.4)%
    (56,556 )
     
     
                     
    NET ASSETS – 100.0%   $ 15,333,619  
     
     
 
The percentage shown for each investment and investment category reflects the value of the respective investment or category as a percentage of net assets.
 
(a) Represents Affiliated Funds.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 22


 

GOLDMAN SACHS RETIREMENT STRATEGY 2030 PORTFOLIO
 
 

Schedule of Investments
February 28, 2010 (Unaudited)
 
                     
    Shares   Description   Value
 

 Underlying Funds (Institutional Shares)(a) – 100.6%
                     
                     
    Equity – 84.5%
      623,855     Goldman Sachs Structured International Equity Fund – 27.4%   $ 5,889,194  
      334,974     Goldman Sachs Structured Large Cap Value Fund – 14.0%     3,021,468  
      243,058     Goldman Sachs Structured Large Cap Growth Fund – 12.5%     2,680,928  
      198,777     Goldman Sachs Structured Emerging Markets Equity Fund – 6.8%     1,468,963  
      120,679     Goldman Sachs Large Cap Value Fund – 6.1%     1,303,333  
      129,656     Goldman Sachs Structured Small Cap Equity Fund – 6.0%     1,283,591  
      120,507     Goldman Sachs Strategic Growth Fund – 5.3%     1,133,974  
      95,656     Goldman Sachs Structured International Small Cap Fund – 3.1%     660,029  
      40,078     Goldman Sachs Real Estate Securities Fund – 1.8%     400,378  
      56,635     Goldman Sachs International Real Estate Securities Fund – 1.5%     318,288  
                     
                  18,160,146  
     
     
    Fixed Income – 16.1%
      157,660     Goldman Sachs Commodity Strategy Fund – 4.4%     944,385  
      73,167     Goldman Sachs Inflation Protected Securities Fund – 3.7%     800,450  
      46,591     Goldman Sachs Global Income Fund – 2.7%     590,309  
      72,527     Goldman Sachs High Yield Fund – 2.3%     502,613  
      26,988     Goldman Sachs Emerging Markets Debt Fund – 1.5%     315,490  
      34,709     Goldman Sachs Local Emerging Markets Debt Fund – 1.5%     310,995  
                     
                  3,464,242  
     
     
    TOTAL UNDERLYING FUNDS
(INSTITUTIONAL SHARES) – 100.6%
    (Cost $19,160,134)   $ 21,624,388  
     
     
                     
   
LIABILITIES IN EXCESS OF
OTHER ASSETS – (0.6)%
    (133,722 )
     
     
    NET ASSETS – 100.0%   $ 21,490,666  
     
     
 
The percentage shown for each investment and investment category reflects the value of the respective investment or category as a percentage of net assets.
 
(a) Represents Affiliated Funds.
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
23 


 

GOLDMAN SACHS RETIREMENT STRATEGY 2040 PORTFOLIO
 
 

Schedule of Investments
February 28, 2010 (Unaudited)
 
                     
    Shares   Description   Value
 

 Underlying Funds (Institutional Shares)(a) – 100.4%
                     
                     
    Equity – 88.2%
      420,753     Goldman Sachs Structured International Equity Fund – 28.3%   $ 3,971,906  
      228,300     Goldman Sachs Structured Large Cap Value Fund – 14.7%     2,059,264  
      166,320     Goldman Sachs Structured Large Cap Growth Fund – 13.1%     1,834,515  
      141,905     Goldman Sachs Structured Emerging Markets Equity Fund – 7.5%     1,048,675  
      81,379     Goldman Sachs Large Cap Value Fund – 6.3%     878,889  
      86,768     Goldman Sachs Structured Small Cap Equity Fund – 6.1%     859,000  
      81,578     Goldman Sachs Strategic Growth Fund – 5.5%     767,653  
      68,426     Goldman Sachs Structured International Small Cap Fund – 3.4%     472,138  
      25,926     Goldman Sachs Real Estate Securities Fund – 1.8%     259,000  
      36,657     Goldman Sachs International Real Estate Securities Fund – 1.5%     206,012  
                     
                  12,357,052  
     
     
    Fixed Income – 12.2%
      99,448     Goldman Sachs Commodity Strategy Fund – 4.2%     595,692  
      40,946     Goldman Sachs Global Income Fund – 3.7%     518,788  
      31,702     Goldman Sachs High Yield Fund – 1.6%     219,697  
      11,861     Goldman Sachs Emerging Markets Debt Fund – 1.0%     138,660  
      15,204     Goldman Sachs Local Emerging Markets Debt Fund – 1.0%     136,228  
      8,745     Goldman Sachs Inflation Protected Securities Fund – 0.7%     95,673  
                     
                  1,704,738  
     
     
    TOTAL UNDERLYING FUNDS
(INSTITUTIONAL SHARES) – 100.4%
    (Cost $12,752,745)   $ 14,061,790  
     
     
                     
   
LIABILITIES IN EXCESS OF
OTHER ASSETS – (0.4)%
    (60,027 )
     
     
    NET ASSETS – 100.0%   $ 14,001,763  
     
     
 
The percentage shown for each investment and investment category reflects the value of the respective investment or category as a percentage of net assets.
 
(a) Represents Affiliated Funds.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 24


 

GOLDMAN SACHS RETIREMENT STRATEGY 2050 PORTFOLIO
 
 

Schedule of Investments
February 28, 2010 (Unaudited)
 
                     
    Shares   Description   Value
 

 Underlying Funds (Institutional Shares)(a) – 100.7%
                     
                     
    Equity – 92.5%
      323,920     Goldman Sachs Structured International Equity Fund – 29.4%   $ 3,057,805  
      178,101     Goldman Sachs Structured Large Cap Value Fund – 15.4%     1,606,477  
      130,464     Goldman Sachs Structured Large Cap Growth Fund – 13.8%     1,439,032  
      114,460     Goldman Sachs Structured Emerging Markets Equity Fund – 8.1%     845,856  
      63,737     Goldman Sachs Large Cap Value Fund – 6.6%     688,357  
      66,238     Goldman Sachs Structured Small Cap Equity Fund – 6.3%     655,754  
      64,322     Goldman Sachs Strategic Growth Fund – 5.8%     605,266  
      55,781     Goldman Sachs Structured International Small Cap Fund – 3.7%     384,888  
      19,308     Goldman Sachs Real Estate Securities Fund – 1.9%     192,883  
      27,354     Goldman Sachs International Real Estate Securities Fund – 1.5%     153,730  
                     
                  9,630,048  
     
     
    Fixed Income – 8.2%
      71,170     Goldman Sachs Commodity Strategy Fund – 4.1%     426,307  
      15,978     Goldman Sachs Global Income Fund – 1.9%     202,439  
      12,346     Goldman Sachs High Yield Fund – 0.8%     85,558  
      4,634     Goldman Sachs Emerging Markets Debt Fund – 0.5%     54,174  
      5,876     Goldman Sachs Local Emerging Markets Debt Fund – 0.5%     52,651  
      3,392     Goldman Sachs Inflation Protected Securities Fund – 0.4%     37,106  
                     
                  858,235  
     
     
    TOTAL UNDERLYING FUNDS
(INSTITUTIONAL SHARES) – 100.7%
    (Cost $11,438,292)   $ 10,488,283  
     
     
   
LIABILITIES IN EXCESS OF
OTHER ASSETS – (0.7)%
    (75,177 )
     
     
    NET ASSETS – 100.0%   $ 10,413,106  
     
     
 
The percentage shown for each investment and investment category reflects the value of the respective investment or category as a percentage of net assets.
 
(a) Represents Affiliated Funds.
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
25 


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

Statements of Assets and Liabilities
February 28, 2010 (Unaudited)
 
                 
        Retirement
     
        Strategy 2010
     
        Portfolio      
   
Assets:
                 
   
Investments in Affiliated Underlying Funds, at value (identified cost $12,759,188, $12,170,082, $13,753,821, $19,160,134, $12,752,745 and $11,438,292, respectively)
  $ 14,011,164      
   
Cash
    3,488      
   
Receivables:
           
   
Portfolio shares sold
    24,566      
   
Reimbursement from investment adviser
    23,367      
   
Dividends
    8,011      
   
Investment securities sold
         
     
     
   
Total assets
    14,070,596      
     
     
                 
                 
   
Liabilities:
                 
   
Due to Custodian
         
   
Payables:
           
   
Portfolio shares redeemed
    106,519      
   
Investment securities purchased
    8,011      
   
Amounts owed to affiliates
    3,679      
   
Accrued expenses
    60,355      
     
     
   
Total liabilities
    178,564      
     
     
                 
                 
   
Net Assets:
                 
   
Paid-in capital
    15,997,202      
   
Accumulated undistributed net investment income
    23,162      
   
Accumulated net realized loss from investment transactions
    (3,380,308 )    
   
Net unrealized gain (loss) on investments
    1,251,976      
     
     
   
NET ASSETS
  $ 13,892,032      
 
 
                 
   
Net Assets:
           
   
Class A
  $ 7,154,595      
   
Institutional
    6,699,869      
   
Class IR
    8,576      
   
Class R
    28,992      
 
 
   
Total Net Assets
  $ 13,892,032      
 
 
   
Shares Outstanding $0.001 par value (unlimited shares authorized):
           
   
Class A
    904,079      
   
Institutional
    842,459      
   
Class IR
    1,080      
   
Class R
    3,648      
 
 
   
Net asset value, offering and redemption price per share:(a)
           
   
Class A
    $7.91      
   
Institutional
    7.95      
   
Class IR
    7.94      
   
Class R
    7.95      
 
 
 
(a) Maximum public offering price per share (NAV per share multiplied by 1.0582) for Class A Shares of the Retirement Strategy 2010, Retirement Strategy 2015, Retirement Strategy 2020, Retirement Strategy 2030, Retirement Strategy 2040 and Retirement Strategy 2050 Portfolios is $8.37, $7.95, $7.67, $7.29, $7.08 and $7.04, respectively.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 26


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

 
 
                                             
    Retirement
    Retirement
    Retirement
    Retirement
    Retirement
     
    Strategy 2015
    Strategy 2020
    Strategy 2030
    Strategy 2040
    Strategy 2050
     
    Portfolio     Portfolio     Portfolio     Portfolio     Portfolio      
                                             
 
     
                                             
    $ 12,974,608     $ 15,390,175     $ 21,624,388     $ 14,061,790     $ 10,488,283      
      968                   2,203       2,321      
                                             
      1,889       30,604       29,482       1,762       1,764      
      21,625       23,748       23,811       22,070       19,751      
      5,423       5,722       6,733       2,689       1,065      
       —             8,760                  
     
     
      13,004,513       15,450,249       21,693,174       14,090,514       10,513,184      
     
     
                                             
                                             
     
                                             
       —       19,662       8,767                  
                                             
      1,929       25,161       115,157       22,747       41,545      
      5,423       5,722       6,733       2,689       1,065      
      2,996       4,258       7,287       3,897       1,949      
      58,741       61,827       64,564       59,418       55,519      
     
     
      69,089       116,630       202,508       88,751       100,078      
     
     
                                             
                                             
     
                                             
      15,399,332       17,689,211       23,616,645       16,682,237       13,496,082      
      19,741       13,996       5,984       1,243       104,242      
      (3,288,175 )     (4,005,942 )     (4,596,217 )     (3,990,762 )     (2,237,209 )    
      804,526       1,636,354       2,464,254       1,309,045       (950,009 )    
     
     
    $ 12,935,424     $ 15,333,619     $ 21,490,666     $ 14,001,763     $ 10,413,106      
 
 
                                             
                                             
    $ 5,364,331     $ 8,778,572     $ 15,661,152     $ 7,988,128     $ 2,764,988      
      7,519,867       6,421,393       5,172,089       5,778,741       7,619,160      
      8,235       7,952       7,575       7,459       7,348      
      42,991       125,702       649,850       227,435       21,610      
 
 
    $ 12,935,424     $ 15,333,619     $ 21,490,666     $ 14,001,763     $ 10,413,106      
 
 
                                             
      714,737       1,210,109       2,274,359       1,194,612       415,989      
      997,840       881,291       748,364       860,923       1,141,868      
      1,094       1,092       1,097       1,113       1,102      
      5,731       17,310       94,341       33,994       3,248      
 
 
                                             
      $7.51       $7.25       $6.89       $6.69       $6.65      
      7.54       7.29       6.91       6.71       6.67      
      7.53       7.28       6.90       6.70       6.67      
      7.50       7.26       6.89       6.69       6.65      
 
 
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
27 


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

Statements of Operations
For the Six Months Ended February 28, 2010 (Unaudited)
 
             
        Retirement
 
        Strategy 2010
 
        Portfolio  
 
   
Investment income:
             
   
Dividends from Affiliated Underlying Funds
  $ 282,140  
     
     
             
             
   
Expenses:
             
   
Professional fees
    32,015  
   
Custody and accounting fees
    23,097  
   
Registration fees
    20,776  
   
Printing fees
    12,765  
   
Management fees
    10,621  
   
Distribution and Service fees(a)
    7,589  
   
Transfer Agent fees(a)
    7,385  
   
Trustee fees
    6,342  
   
Other
    4,223  
     
     
   
Total expenses
    124,813  
     
     
   
Less — expense reductions
    (101,767 )
     
     
   
Net expenses
    23,046  
     
     
   
NET INVESTMENT INCOME
    259,094  
     
     
             
             
   
Realized and unrealized gain (loss) from investment transactions:
             
   
Net realized loss from Affiliated Underlying Funds
    (667,990 )
   
Net change in unrealized gain on Affiliated Underlying Funds
    1,251,820  
     
     
   
Net realized and unrealized gain from investment transactions
    583,830  
     
     
   
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
  $ 842,924  
     
     
 
(a)   Class specific Distribution and Service, and Transfer Agent fees were as follows:
 
                                                 
    Distribution and Service Fees     Transfer Agent Fees  
Portfolio
 
Class A
   
Class R
   
Class A
   
Institutional
   
Class IR
   
Class R
 
Retirement Strategy 2010
  $ 7,567     $ 22     $ 5,751     $ 1,618     $ 8     $ 8  
Retirement Strategy 2015
    6,047       70       4,596       1,772       7       27  
Retirement Strategy 2020
    10,383       186       7,891       1,543       7       71  
Retirement Strategy 2030
    18,279       1,445       13,893       1,468       7       549  
Retirement Strategy 2040
    8,968       539       6,815       1,421       7       205  
Retirement Strategy 2050
    3,254       28       2,473       1,502       7       10  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 28


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

 
                                         
    Retirement
    Retirement
    Retirement
    Retirement
    Retirement
 
    Strategy 2015
    Strategy 2020
    Strategy 2030
    Strategy 2040
    Strategy 2050
 
    Portfolio     Portfolio     Portfolio     Portfolio     Portfolio  
 
     
                                         
    $ 276,261     $ 326,625     $ 467,511     $ 292,781     $ 193,358  
     
     
                                         
                                         
     
                                         
      32,015       32,015       32,015       32,015       32,015  
      21,806       23,992       23,773       21,869       19,245  
      20,755       20,862       21,055       20,818       20,669  
      12,473       13,694       17,165       13,217       11,377  
      10,302       12,077       16,911       10,875       7,597  
      6,117       10,569       19,724       9,507       3,282  
      6,402       9,512       15,917       8,448       3,992  
      6,342       6,345       6,351       6,344       6,339  
      4,243       4,288       5,092       4,297       4,191  
     
     
      120,455       133,354       158,003       127,390       108,707  
     
     
      (100,107 )     (104,094 )     (109,510 )     (101,170 )     (95,659 )
     
     
      20,348       29,260       48,493       26,220       13,048  
     
     
      255,913       297,365       419,018       266,561       180,310  
     
     
                                         
                                         
     
                                         
      (1,521,658 )     (1,399,980 )     (1,562,453 )     (1,891,927 )     (853,836 )
      2,132,348       2,093,706       2,524,950       2,542,449       1,228,422  
     
     
      610,690       693,726       962,497       650,522       374,586  
     
     
    $ 866,603     $ 991,091     $ 1,381,515     $ 917,083     $ 554,896  
     
     
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
29 


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

Statements of Changes in Net Assets
 
                                     
        Retirement Strategy 2010 Portfolio     Retirement Strategy 2015 Portfolio  
        For the
    For the
    For the
    For the
 
        Six Months Ended
    Fiscal Year
    Six Months Ended
    Fiscal Year
 
        February 28, 2010
    Ended
    February 28, 2010
    Ended
 
        (Unaudited)     August 31, 2009     (Unaudited)     August 31, 2009  
 
   
From operations:
                                     
   
Net investment income
  $ 259,094     $ 448,904     $ 255,913     $ 403,205  
   
Net realized loss from Affiliated Underlying Funds
    (667,990 )     (2,507,592 )     (1,521,658 )     (1,572,043 )
   
Net change in unrealized gain on Affiliated Underlying Funds
    1,251,820       1,156,218       2,132,348       89,367  
     
     
   
Net increase (decrease) in net assets resulting from operations
    842,924       (902,470 )     866,603       (1,079,471 )
     
     
                                     
                                     
   
Distributions to shareholders:
                                     
   
From net investment income
                               
   
Class A Shares
    (167,074 )     (136,700 )     (136,021 )     (78,576 )
   
Institutional Shares
    (273,641 )     (250,425 )     (289,800 )     (248,801 )
   
Service Shares(a)
          (206 )           (185 )
   
Class IR Shares
    (255 )     (231 )     (239 )     (210 )
   
Class R Shares
    (217 )     (187 )     (842 )     (168 )
   
From net realized gains
                               
   
Class A Shares
    (511 )     (43,371 )           (52,446 )
   
Institutional Shares
    (754 )     (76,359 )           (157,190 )
   
Service Shares(a)
          (77 )           (145 )
   
Class IR Shares
    (1 )     (74 )           (141 )
   
Class R Shares
    (1 )     (74 )           (141 )
     
     
   
Total distributions to shareholders
    (442,454 )     (507,704 )     (426,902 )     (538,003 )
     
     
                                     
                                     
   
From share transactions:
                                     
   
Proceeds from sales of shares
    2,757,866       6,567,372       1,766,380       4,130,398  
   
Reinvestment of distributions
    440,896       507,704       426,902       538,003  
   
Cost of shares redeemed
    (3,118,569 )     (3,180,941 )     (2,950,238 )     (1,421,484 )
     
     
   
Net increase (decrease) in net assets resulting from share transactions
    80,193       3,894,135       (756,956 )     3,246,917  
     
     
   
TOTAL INCREASE (DECREASE)
    480,663       2,483,961       (317,255 )     1,629,443  
     
     
                                     
                                     
   
Net assets:
                                     
   
Beginning of period
    13,411,369       10,927,408       13,252,679       11,623,236  
     
     
   
End of period
  $ 13,892,032     $ 13,411,369     $ 12,935,424     $ 13,252,679  
     
     
   
Accumulated undistributed net investment income
  $ 23,162     $ 205,255     $ 19,741     $ 190,730  
     
     
(a)    Service Shares liquidated on March 13, 2009.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 30


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

 
                                                 
    Retirement Strategy 2020 Portfolio     Retirement Strategy 2030 Portfolio     Retirement Strategy 2040 Portfolio  
    For the
          For the
          For the
       
    Six Months Ended
    For the Fiscal
    Six Months Ended
    For the Fiscal
    Six Months Ended
    For the Fiscal
 
    February 28, 2010
    Year Ended
    February 28, 2010
    Year Ended
    February 28, 2010
    Year Ended
 
    (Unaudited)     August 31, 2009     (Unaudited)     August 31, 2009     (Unaudited)     August 31, 2009  
 
     
                                                 
    $ 297,365     $ 398,308     $ 419,018     $ 401,164     $ 266,561     $ 293,499  
      (1,399,980 )     (2,384,847 )     (1,562,453 )     (2,689,221 )     (1,891,927 )     (1,911,048 )
      2,093,706       1,105,724       2,524,950       1,715,860       2,542,449       643,898  
     
     
      991,091       (880,815 )     1,381,515       (572,197 )     917,083       (973,651 )
     
     
                                                 
                                                 
     
                                                 
                                                 
      (248,560 )     (88,896 )     (327,021 )     (153,889 )     (179,030 )     (51,927 )
      (276,203 )     (172,013 )     (207,054 )     (199,389 )     (211,378 )     (179,007 )
       —       (128 )           (156 )           (137 )
      (247 )     (154 )     (175 )     (182 )     (193 )     (163 )
      (2,289 )     (112 )     (12,764 )     (141 )     (5,401 )     (122 )
                                                 
       —       (87,087 )           (127,234 )           (69,639 )
       —       (154,511 )           (154,586 )           (220,531 )
       —       (154 )           (154 )           (221 )
       —       (150 )           (151 )           (216 )
       —       (150 )           (151 )           (216 )
     
     
      (527,299 )     (503,355 )     (547,014 )     (636,033 )     (396,002 )     (522,179 )
     
     
                                                 
                                                 
     
                                                 
      2,878,028       6,711,426       4,592,786       11,072,005       2,880,493       5,735,885  
      527,299       501,968       547,014       635,905       395,688       522,050  
      (4,000,043 )     (2,479,657 )     (5,472,300 )     (2,122,547 )     (3,750,166 )     (1,344,237 )
     
     
     
(594,716
)     4,733,737       (332,500 )     9,585,363       (473,985 )     4,913,698  
     
     
      (130,924 )     3,349,567       502,001       8,377,133       47,096       3,417,868  
     
     
                                                 
                                                 
     
                                                 
      15,464,543       12,114,976       20,988,665       12,611,532       13,954,667       10,536,799  
     
     
    $ 15,333,619     $ 15,464,543     $ 21,490,666     $ 20,988,665     $ 14,001,763     $ 13,954,667  
     
     
    $ 13,996     $ 243,930     $ 5,984     $ 133,980     $ 1,243     $ 130,684  
     
     
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
31 


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

Statements of Changes in Net Assets
 
                     
        Retirement Strategy 2050 Portfolio  
        For the
       
        Six Months Ended
    For the Fiscal
 
        February 28, 2010
    Year Ended
 
        (Unaudited)     August 31, 2009  
 
   
From operations:
                     
   
Net investment income
  $ 180,310     $ 214,965  
   
Net realized loss from Affiliated Underlying Funds
    (853,836 )     (1,149,054 )
   
Net change in unrealized gain (loss) on Affiliated Underlying Funds
    1,228,422       (441,911 )
     
     
   
Net increase (decrease) in net assets resulting from operations
    554,896       (1,376,000 )
     
     
                     
                     
   
Distributions to shareholders:
                     
   
From net investment income
               
   
Class A Shares
    (54,568 )     (7,972 )
   
Institutional Shares
    (172,324 )     (104,514 )
   
Service Shares(a)
          (62 )
   
Class IR Shares
    (158 )     (90 )
   
Class R Shares
    (227 )     (49 )
   
From net realized gains
               
   
Class A Shares
          (22,303 )
   
Institutional Shares
          (257,663 )
   
Service Shares(a)
          (258 )
   
Class IR Shares
          (252 )
   
Class R Shares
          (252 )
     
     
   
Total distributions to shareholders
    (227,277 )     (393,415 )
     
     
                     
                     
   
From share transactions:
                     
   
Proceeds from sales of shares
    936,455       1,916,692  
   
Reinvestment of distributions
    227,277       393,415  
   
Cost of shares redeemed
    (527,264 )     (334,501 )
     
     
   
Net increase in net assets resulting from share transactions
    636,468       1,975,606  
     
     
   
TOTAL INCREASE
    964,087       206,191  
     
     
                     
                     
   
Net assets:
                     
   
Beginning of period
    9,449,019       9,242,828  
     
     
   
End of period
  $ 10,413,106     $ 9,449,019  
     
     
   
Accumulated undistributed net investment income
  $ 104,242     $ 151,209  
     
     
 
(a) Service Shares liquidated on March 13, 2009.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 32


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

Notes to Financial Statements
February 28, 2010 (Unaudited)
 
1. ORGANIZATION
 
 
Goldman Sachs Trust (the “Trust”) is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The following table lists those series of the Trust that are included in this report (collectively, the “Portfolios” or individually a “Portfolio”), along with their corresponding share classes and respective diversification status under the Act:
 
                 
    Share Classes
    Diversified/
 
Portfolio   Offered     Non-Diversified  
   
All Retirement Strategies Portfolios
    A, Institutional, IR and R       Diversified  
 
 
 
Class A Shares are sold with a front-end sales charge of up to 5.50%. Institutional, Class IR and Class R Shares are not subject to a sales charge. Goldman, Sachs & Co. (“Goldman Sachs” or the “Distributor”) serves as Distributor of the shares of the Portfolios pursuant to a Distribution Agreement. Goldman Sachs may retain a portion of such sales charges it receives as Distributor. As of March 13, 2009, the Service Shares of the Portfolios were liquidated.
Goldman Sachs Asset Management, L.P. (“GSAM”), an affiliate of Goldman Sachs, serves as investment adviser pursuant to a management agreement (the “Agreement”) with the Trust.
The Portfolios are expected to invest primarily all of their assets in a combination of domestic and international equity and fixed income underlying funds (“Underlying Funds”) which are registered under the Act, for which GSAM and Goldman Sachs Asset Management International (“GSAMI”), affiliates of Goldman Sachs, act as investment advisers.
 
2. SIGNIFICANT ACCOUNTING POLICIES
 
 
The following is a summary of the significant accounting policies consistently followed by the Portfolios. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that may affect the amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
 
A. FASB Financial Accounting Standards Codification — The Financial Accounting Standards Board (“FASB”) implemented its “Financial Accounting Standards Codification” (the “Codification”) as the single source of GAAP. While the Codification does not change GAAP, it introduces a new structure to the accounting literature and changes references to accounting standards and other authoritative accounting guidance that have been reflected in the Notes to Financial Statements.
 
B. Investment Valuation — The investment valuation policy of the Portfolios, as well as the Underlying Funds, is to value investments at market value. Investments in the Underlying Funds are valued at the net asset value per share (“NAV”) of the Institutional Share class of each Underlying Fund on the day of valuation. Because each Portfolio invests primarily in other mutual funds, that fluctuate in value, the Portfolios’ shares will correspondingly fluctuate in value. The Underlying Funds may invest in debt securities which, if market quotations are readily available, are valued on the basis of quotations furnished by an independent pricing service approved by the trustees or provided by securities dealers. The pricing services may use valuation models or matrix pricing, which consider: (i) yield or price with respect to bonds that are considered comparable in characteristics such as rating, interest rate and maturity date or (ii) quotations from bond dealers to determine current value. If accurate quotations are not readily available, or if GSAM or GSAMI believes that such quotations do not
 
 
 
33 


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

 
Notes to Financial Statements (continued)
February 28, 2010 (Unaudited)
 
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
 
accurately reflect fair value, the fair value of the Underlying Funds’ investments may be determined based on yield equivalents, a pricing matrix or other sources, under valuation procedures established by the trustees. Short-term debt obligations that mature in sixty days or less and that do not exhibit signs of credit deterioration are valued at amortized cost, which approximates market value.
The Underlying Funds may invest in equity securities and investment companies. Investments in equity securities and investment companies traded on a United States (“U.S.”) securities exchange or the NASDAQ system are valued daily at their last sale price or official closing price on the principal exchange or system on which they are traded. Investments in equity securities and investment companies traded on a foreign securities exchange for which an independent fair value service cannot provide a quote are valued daily at their last sale price or official closing price on the principal exchange on which they are traded. If no sale occurs, such securities and investment companies are valued at the last bid price for long positions and at the last ask price for short positions. Unlisted equity securities in the Underlying Funds 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. In the absence of market quotations, broker quotes will be utilized or the security will be fair valued. Investments in investment companies (other than those that are exchange traded) by the Underlying Funds are valued at the NAV on the valuation date.
The Underlying Funds may also invest in equity securities traded on a foreign securities exchange that are valued daily at fair value determined by an independent fair value service (if available) under valuation procedures approved by the trustees consistent with applicable regulatory guidance. The independent fair value service takes into account multiple factors including, but not limited to, movements in the U.S. securities markets, certain depositary receipts, futures contracts and foreign currency exchange rates that have occurred subsequent to the close of the foreign securities exchanges. While the independent fair value service may not take into account market or security specific information, under the valuation procedures, these securities might also be fair valued by GSAM or GSAMI by taking into consideration market or security specific information as discussed below.
GSAM or GSAMI, consistent with its procedures and applicable regulatory guidance, may make an adjustment to the previous closing prices of either domestic or foreign securities in light of significant events to reflect what it believes to be the fair value of the securities at the time of determining an Underlying Fund’s NAV. Significant events that could affect a large number of securities in a particular market may include, but are not limited to: situations relating to one or more single issuers in a market sector; significant fluctuations in U.S. or foreign markets; market dislocations; market disruptions or market closings; equipment failures; natural or man-made disasters or acts of God; armed conflicts; government actions or other developments; as well as the same or similar events which may affect specific issuers or the securities markets even though not tied directly to the securities markets. Other significant events that could relate to a single issuer may include, but are not limited to: corporate actions such as reorganizations, mergers and buy-outs; corporate announcements, including those relating to earnings, products and regulatory news; significant litigation; low trading volume; and trading limits or suspensions.
 
C. Security and Portfolio Share Transactions, and Investment Income — Purchases and sales of the Underlying Funds and Portfolio share transactions are reflected for financial reporting purposes as of the trade date, which may cause the NAV as stated in the accompanying financial statements to be different than the NAV applied to Portfolio share transactions. Realized gains and losses on sales of the Underlying Funds are calculated using the identified cost basis. Dividend income, capital gains and return of capital distributions from the Underlying Funds are recognized on the ex-dividend date. Interest income is recorded on the basis of interest accrued, premium amortized and discount accreted.
Net investment income (other than class specific expenses) and unrealized and realized gains or losses are allocated daily to each class of shares of the respective Portfolio based upon the relative proportion of net assets of each class.
 
 
 
 34


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

 
 
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
 
D. Expenses — Expenses incurred by the Trust that do not specifically relate to an individual Portfolio of the Trust are allocated to the Portfolios on a straight-line and/or pro-rata basis depending upon the nature of the expense and are accrued daily. Expenses included in the accompanying financial statements reflect the expenses of each Portfolio and do not include any expenses associated with the Underlying Funds. Because the Underlying Funds have varied expense and fee levels and the Portfolios may own different proportions of Underlying Funds at different times, the amount of fees and expenses incurred indirectly by each Portfolio will vary.
 
E. Federal Taxes and Distributions to Shareholders — It is each Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Code”) applicable to regulated investment companies (mutual funds) and to distribute each year substantially all of its investment company taxable income and capital gains to its shareholders. Accordingly, no federal income tax provisions are required. Distributions to shareholders are recorded on the ex-dividend date. Income and capital gains distributions, if any, are declared and paid according to the following schedule:
 
                 
    Income Distributions
    Capital Gains Distributions
 
Portfolio   Declared/Paid     Declared/Paid  
   
All Retirement Strategies Portfolios
    Annually       Annually  
 
 
 
Net capital losses are carried forward to future fiscal years and may be used to the extent allowed by the Code to offset any future capital gains. Utilization of capital loss carryforwards will reduce the requirement of future capital gains distributions.
The characterization of distributions to shareholders for financial reporting purposes is determined in accordance with federal income tax rules, which may differ from GAAP. The source of each Portfolio’s distributions may be shown in the accompanying financial statements as either from net investment income, net realized gain or capital. The Portfolios’ capital accounts on the Statements of Assets and Liabilities reflect permanent GAAP/tax differences based on the appropriate tax character, but do not reflect temporary differences.
GSAM has reviewed the Portfolios’ tax positions for all open tax years (the current and prior two years, as applicable) and has concluded that no provision for income tax is required in the Portfolios’ financial statements. Such open tax years remain subject to examination and adjustment by tax authorities.
 
3. AGREEMENTS AND AFFILIATED TRANSACTIONS
 
 
A. Management Agreement — Under the Agreement, GSAM manages the Portfolios, subject to the general supervision of the trustees.
As compensation for the services rendered pursuant to the Agreement, the assumption of the expenses related thereto and administration of the Portfolios’ business affairs, including providing facilities, GSAM is entitled to a management fee, computed daily and paid monthly, equal to an annual percentage rate of 0.15% of each Portfolio’s average daily net assets. GSAM has voluntarily agreed to waive a portion of its management fee equal to 0.05% of each Portfolio’s average daily net assets. The voluntary management fee waiver may be modified or terminated at any time at the option of GSAM.
 
 
 
35 


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

 
Notes to Financial Statements (continued)
February 28, 2010 (Unaudited)
 
3. AGREEMENTS AND AFFILIATED TRANSACTIONS (continued)
 
B. Distribution Agreement and Service Plans — The Trust, on behalf of each Portfolio, has adopted Distribution and Service Plans (the “Plans”). Under the Plans, Goldman Sachs is entitled to a fee accrued daily and paid monthly for distribution services and account maintenance services equal to, on an annual basis, 0.25% and 0.50% of each Portfolio’s average daily net assets attributable to Class A and Class R Shares, respectively. These fees may then be paid by Goldman Sachs to authorized dealers. With respect to Class A and Class R Shares, the Distributor at its discretion may use compensation for distribution services paid under the Plans to compensate service organizations for personal and account maintenance services and expenses so long as such total compensation does not exceed the maximum cap on “service fees” imposed by the Financial Industry Regulatory Authority.
Goldman Sachs may retain a portion of the Class A front end sales charge. During the six months ended February 28, 2010, Goldman Sachs advised that it retained the following approximate amounts:
 
         
    Front End
 
    Sales Charge  
Portfolio   Class A  
   
Retirement Strategy 2010
  $ 2,000  
 
 
Retirement Strategy 2015
    1,900  
 
 
Retirement Strategy 2020
    2,400  
 
 
Retirement Strategy 2030
    4,600  
 
 
Retirement Strategy 2040
    1,600  
 
 
Retirement Strategy 2050
    400  
 
 
 
C. Transfer Agency Agreement — Goldman Sachs also serves as the transfer agent for the Portfolios for a fee pursuant to a Transfer Agency Agreement. The fees charged for such transfer agency services are calculated daily and paid monthly at an annual rate as follows: 0.19% of the average daily net assets for Class A, Class IR and Class R Shares and 0.04% of the average daily net assets for Institutional Shares.
 
D. Other Agreements — GSAM has voluntarily agreed to limit certain “Other Expenses” (excluding management fees, distribution and service fees, transfer agent fees and expenses, taxes, interest, brokerage fees and litigation, indemnification, shareholder meetings and other extraordinary expenses, exclusive of any transfer agent fee credit reductions) to the extent such expenses exceed, on an annual basis, a percentage rate of the average daily net assets of each Portfolio. Such expense reimbursements, if any, are computed daily and paid monthly. In addition, the Portfolios are not obligated to reimburse GSAM for prior fiscal year expense reimbursements, if any. The Other Expenses limitations for the Portfolios as an annual percentage rate of average daily net assets are 0.014%. These expense limitations may be modified or terminated at any time at the option of GSAM.
 
 
 
 36


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

 
 
3. AGREEMENTS AND AFFILIATED TRANSACTIONS (continued)
 
For the six months ended February 28, 2010, these expense reductions, including any fee waivers and Other Expenses reimbursement, were as follows (in thousands):
 
                         
          Other
    Total
 
    Management
    Expenses
    Expense
 
Portfolio   Fee Waiver     Reimbursement     Reductions  
   
Retirement Strategy 2010
  $ 4     $ 98     $ 102  
 
 
Retirement Strategy 2015
    3       97       100  
 
 
Retirement Strategy 2020
    4       100       104  
 
 
Retirement Strategy 2030
    6       104       110  
 
 
Retirement Strategy 2040
    4       97       101  
 
 
Retirement Strategy 2050
    3       93       96  
 
 
 
As of February 28, 2010, the amounts owed to affiliates of the Portfolios were as follows (in thousands):
 
                                 
          Distribution
             
    Management
    and
    Transfer
       
Portfolio   Fees     Service Fees     Agent Fees     Total  
   
Retirement Strategy 2010
  $ 1     $ 2     $ 1     $ 4  
 
 
Retirement Strategy 2015
    1       1       1       3  
 
 
Retirement Strategy 2020
    1       2       1       4  
 
 
Retirement Strategy 2030
    2       3       2       7  
 
 
Retirement Strategy 2040
    1       2       1       4  
 
 
Retirement Strategy 2050
    1       *     1       2  
 
 
 
* Amount is less than $500.
 
 
 
37 


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

 
Notes to Financial Statements (continued)
February 28, 2010 (Unaudited)
 
3. AGREEMENTS AND AFFILIATED TRANSACTIONS (continued)
 
E. Line of Credit Facility — The Portfolios participate in a $660,000,000 committed, unsecured revolving line of credit facility (the “facility”) together with other funds of the Trust and registered investment companies having management agreements with GSAM or its affiliates. Pursuant to the terms of the facility, the Portfolios and other borrowers may increase the credit amount by an additional $340,000,000, for a total of up to $1 billion. The facility is to be used solely for temporary or emergency purposes. The interest rate on borrowings is based on the federal funds rate. This facility also requires a fee to be paid by the Portfolios based on the amount of the commitment that has not been utilized. For the six months ended February 28, 2010, the Portfolios did not have any borrowings under the facility.
 
F. Other Transactions with Affiliates — As of February 28, 2010, Goldman Sachs Group, Inc. (“GSG”) was the beneficial owner of the outstanding shares of the Portfolios as follows:
 
                                             
Retirement
    Retirement
    Retirement
    Retirement
    Retirement
    Retirement
 
Strategy 2010     Strategy 2015     Strategy 2020     Strategy 2030     Strategy 2040     Strategy 2050  
   
  48 %     49 %     39 %     21 %     40 %     72 %
 
 
 
4. FAIR VALUE OF INVESTMENTS
 
 
The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
 
 
Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
 
Level 2 — Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly;
 
Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.
 
 
 
 38


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

 
 
4. FAIR VALUE OF INVESTMENTS (continued)
 
The following is a summary of the Portfolios’ investments categorized in the fair value hierarchy, as of February 28, 2010:
 
                                                                         
    Retirement Strategy 2010     Retirement Strategy 2015     Retirement Strategy 2020  
Assets   Level 1     Level 2     Level 3     Level 1     Level 2     Level 3     Level 1     Level 2     Level 3  
   
Equity Underlying Funds
  $ 8,437,827     $     $     $ 8,845,276     $     $     $ 11,487,623     $     $  
Fixed Income Underlying Funds
    5,573,337                   4,129,332                   3,902,552              
 
 
Total
  $ 14,011,164     $     $     $ 12,974,608     $     $     $ 15,390,175     $     $  
 
 
 
                                                                         
    Retirement Strategy 2030     Retirement Strategy 2040     Retirement Strategy 2050  
Assets   Level 1     Level 2     Level 3     Level 1     Level 2     Level 3     Level 1     Level 2     Level 3  
   
Equity Underlying Funds
  $ 18,160,146     $     $     $ 12,357,052     $     $     $ 9,630,048     $     $  
Fixed Income Underlying Funds
    3,464,242                   1,704,738                   858,235              
 
 
Total
  $ 21,624,388     $     $     $ 14,061,790     $     $     $ 10,488,283     $     $  
 
 
 
5. PORTFOLIO SECURITIES TRANSACTIONS
 
 
The cost of purchases and proceeds from sales of the Underlying Funds for the six months ended February 28, 2010, were as follows:
 
                 
Portfolio   Purchases     Sales  
   
Retirement Strategy 2010
  $ 4,932,202     $ 4,970,795  
 
 
Retirement Strategy 2015
    4,013,161       4,904,907  
 
 
Retirement Strategy 2020
    5,146,470       5,927,754  
 
 
Retirement Strategy 2030
    8,046,791       8,400,173  
 
 
Retirement Strategy 2040
    5,023,127       5,619,474  
 
 
Retirement Strategy 2050
    2,595,172       1,912,942  
 
 
 
 
 
39 


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

 
Notes to Financial Statements (continued)
February 28, 2010 (Unaudited)
 
6. TAX INFORMATION
 
 
As of the most recent fiscal year end, August 31, 2009, the Portfolios’ capital loss carryforwards and certain timing differences on a tax basis were as follows:
 
                                                 
    Retirement
    Retirement
    Retirement
    Retirement
    Retirement
    Retirement
 
    Strategy
    Strategy
    Strategy
    Strategy
    Strategy
    Strategy
 
    2010     2015     2020     2030     2040     2050  
   
Capital loss carryforwards expiring 20171
  $     $ (37,262 )   $ (92,140 )   $ (6,509 )   $ (60,191 )   $ (127,377 )
Timing differences (Post October losses)
    (465,990 )     (249,580 )     (260,248 )     (260,652 )     (317,219 )     (276,485 )
 
 
 
1 Expiration occurs on August 31 of the year indicated.
At February 28, 2010, the Portfolios’ aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes were as follows:
 
                                                 
    Retirement
    Retirement
    Retirement
    Retirement
    Retirement
    Retirement
 
    Strategy
    Strategy
    Strategy
    Strategy
    Strategy
    Strategy
 
    2010     2015     2020     2030     2040     2050  
   
Tax Cost
  $ 14,999,018     $ 13,643,566     $ 16,002,590     $ 21,922,932     $ 14,471,641     $ 12,415,900  
 
 
Gross unrealized gain
    1,259,290       843,133       1,654,794       2,480,208       1,334,922       136,107  
Gross unrealized loss
    (2,247,144 )     (1,512,091 )     (2,267,209 )     (2,778,752 )     (1,744,773 )     (2,063,724 )
 
 
Net unrealized security loss
  $ (987,854 )   $ (668,958 )   $ (612,415 )   $ (298,544 )   $ (409,851 )   $ (1,927,617 )
 
 
 
The difference between GAAP-basis and tax-basis unrealized gains/(losses) is attributable primarily to wash sales and differences related to the tax treatment of Underlying Fund investments as of the most recent fiscal year end.
 
7. OTHER RISKS
 
 
Market and Credit Risks — In the normal course of business, the Portfolios trade financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk). Additionally, the Portfolios may also be exposed to credit risk in the event that an issuer fails to perform or that an institution or entity with which the Portfolios have unsettled or open transaction defaults.
 
Portfolios’ Shareholder Concentration — The Portfolios do not invest in the Underlying Funds for the purpose of exercising management or control; however, investments by the Portfolios within their principal investment strategies may represent a significant portion of each Underlying Fund’s net assets.
 
 
 
 40


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

 
 
8. INDEMNIFICATIONS
 
 
Under the Trust’s organizational documents, its trustees, officers, employees and agents are indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolios. Additionally, in the course of business, the Portfolios enter into contracts that contain a variety of indemnification clauses. The Portfolios’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Portfolios that have not yet occurred. However, GSAM believes the risk of loss under these arrangements to be remote.
 
9. SUBSEQUENT EVENT
 
 
Subsequent events after the balance sheet date have been evaluated through the date the financial statements were issued. Other than the item discussed below, GSAM has concluded that there is no impact requiring adjustment or disclosure in the financial statements.
 
Legal Proceedings — On April 16, 2010, the Securities and Exchange Commission (“SEC”) brought an action under the U.S. federal securities laws in the U.S. District Court for the Southern District of New York against Goldman, Sachs & Co. (“GS&Co.”) and one of its employees alleging that they made materially misleading statements and omissions in connection with a 2007 private placement of securities relating to a synthetic collateralized debt obligation sold to two institutional investors. GS&Co. and/or other affiliates of The Goldman Sachs Group, Inc. have received or may in the future receive notices and requests for information from various regulators, and have become or may in the future become involved in legal proceedings, based on allegations similar to those made by the SEC or other matters.
Neither Goldman Sachs Asset Management, L.P. or Goldman Sachs Asset Management International (collectively “GSAM”) nor any GSAM-managed funds have been named in the complaint. Moreover, the SEC complaint does not seek any penalties against them or against any employee who is or has been part of GSAM.
In the view of GS&Co. and GSAM, neither the matters alleged in this or any such similar proceedings nor their eventual resolution are likely to have a material effect on the ability of GS&Co., GSAM or their affiliates to provide services to GSAM-managed funds. Due to a provision in the law governing the operation of mutual funds, the resolution of the SEC action could, under certain circumstances, result in a situation in which GS&Co., GSAM and their affiliates would be ineligible to serve as an investment adviser or principal underwriter for U.S.-registered mutual funds absent an exemption from the SEC. While there is no assurance that such an exemption would be granted, the SEC has granted this type of relief in the past.
 
 
 
41 


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

 
Notes to Financial Statements (continued)
February 28, 2010 (Unaudited)
 
10. SUMMARY OF SHARE TRANSACTIONS
 
 
Share activity is as follows:
 
                                 
    Retirement Strategy 2010 Portfolio  
       
    For the Six Months Ended
    For the Fiscal Year Ended
 
    February 28, 2010 (Unaudited)     August 31, 2009  
       
    Shares     Dollars     Shares     Dollars  
       
Class A Shares
                               
Shares sold
    338,408     $ 2,737,362       918,277     $ 6,566,984  
Reinvestment of distributions
    21,015       166,028       27,832       180,071  
Shares redeemed
    (113,845 )     (918,527 )     (465,204 )     (3,172,645 )
 
 
      245,578       1,984,863       480,905       3,574,410  
 
 
Institutional Shares
                               
Shares sold
                43       267  
Reinvestment of distributions
    34,602       274,394       50,352       326,784  
Shares redeemed
    (268,621 )     (2,200,000 )     (249 )     (1,838 )
 
 
      (234,019 )     (1,925,606 )     50,146       325,213  
 
 
Service Shares(a)
                               
Shares sold
                       
Reinvestment of distributions
                43       282  
Shares redeemed
                (1,071 )     (6,351 )
 
 
                  (1,028 )     (6,069 )
 
 
Class IR Shares
                               
Shares sold
    1       10       5       36  
Reinvestment of distributions
    33       256       47       305  
Shares redeemed
    (1 )     (10 )     (5 )     (36 )
 
 
      33       256       47       305  
 
 
Class R Shares
                               
Shares sold
    2,582       20,494       12       85  
Reinvestment of distributions
    28       218       40       262  
Shares redeemed
    (4 )     (32 )     (10 )     (71 )
 
 
      2,606       20,680       42       276  
 
 
NET INCREASE (DECREASE)
    14,198     $ 80,193       530,112     $ 3,894,135  
 
 
 
(a) Service Shares liquidated on March 13, 2009.
 
 
 
 42


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

 
 
 
                                                                 
    Retirement Strategy 2015 Portfolio     Retirement Strategy 2020 Portfolio  
   
    For the Six Months Ended
    For the Fiscal Year Ended
    For the Six Months Ended
    For the Fiscal Year Ended
 
    February 28, 2010 (Unaudited)     August 31, 2009     February 28, 2010 (Unaudited)     August 31, 2009  
   
    Shares     Dollars     Shares     Dollars     Shares     Dollars     Shares     Dollars  
   
                                                                 
      206,710     $ 1,575,800       580,677     $ 3,833,762       335,116     $ 2,486,139       1,085,783     $ 6,531,333  
      18,160       136,021       21,550       131,022       34,284       248,560       30,083       175,983  
      (98,136 )     (750,130 )     (210,705 )     (1,415,436 )     (244,037 )     (1,799,881 )     (380,143 )     (2,363,439 )
 
 
      126,734       961,691       391,522       2,549,348       125,363       934,818       735,723       4,343,877  
 
 
                                                                 
      21,886       160,501       45,633       292,500       43,316       325,000       4,397       23,351  
      38,537       289,800       66,556       405,991       37,992       276,203       55,390       325,138  
      (283,497 )     (2,200,000 )     (1 )     (7 )     (291,005 )     (2,200,000 )     (1 )     (7 )
 
 
      (223,074 )     (1,749,699 )     112,188       698,484       (209,697 )     (1,598,797 )     59,786       348,482  
 
 
                                                                 
                                                 
                  54       329                   48       281  
                  (1,084 )     (5,962 )                 (1,078 )     (5,630 )
 
 
                  (1,030 )     (5,633 )                 (1,030 )     (5,349 )
 
 
                                                                 
      3       25       5       34       3       19       7       45  
      32       239       57       352       34       247       52       304  
      (3 )     (25 )     (5 )     (34 )     (3 )     (19 )     (7 )     (45 )
 
 
      32       239       57       352       34       247       52       304  
 
 
                                                                 
      3,986       30,054       595       4,102       9,236       66,870       22,587       156,697  
      113       842       51       309       315       2,289       44       262  
      (11 )     (83 )     (7 )     (45 )     (19 )     (143 )     (15,859 )     (110,536 )
 
 
      4,088       30,813       639       4,366       9,532       69,016       6,772       46,423  
 
 
      (92,220 )   $ (756,956 )     503,376     $ 3,246,917       (74,768 )   $ (594,716 )     801,303     $ 4,733,737  
 
 
 
 
 
43 


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

 
Notes to Financial Statements (continued)
February 28, 2010 (Unaudited)
 
10. SUMMARY OF SHARE TRANSACTIONS (continued)
 
 
Share activity is as follows:
 
                                 
    Retirement Strategy 2030 Portfolio  
       
    For the Six Months Ended
    For the Fiscal Year Ended
 
    February 28, 2010 (Unaudited)     August 31, 2009  
       
    Shares     Dollars     Shares     Dollars  
   
Class A Shares
                               
Shares sold
    589,133     $ 4,136,462       1,789,983     $ 10,235,321  
Reinvestment of distributions
    47,463       327,021       51,466       281,002  
Shares redeemed
    (278,859 )     (1,963,421 )     (364,133 )     (2,099,215 )
 
 
      357,737       2,500,062       1,477,316       8,417,108  
 
 
Institutional Shares
                               
Shares sold
    51,380       360,351       54,315       298,991  
Reinvestment of distributions
    29,965       207,054       64,710       353,968  
Shares redeemed
    (485,437 )     (3,500,000 )            
 
 
      (404,092 )     (2,932,595 )     119,025       652,959  
 
 
Service Shares(a)
                               
Shares sold
                2       9  
Reinvestment of distributions
                57       310  
Shares redeemed
                (1,091 )     (5,227 )
 
 
                  (1,032 )     (4,908 )
 
 
Class IR Shares
                               
Shares sold
    3       19       7       39  
Reinvestment of distributions
    25       175       61       333  
Shares redeemed
    (3 )     (19 )     (7 )     (39 )
 
 
      25       175       61       333  
 
 
Class R Shares
                               
Shares sold
    13,825       95,954       81,559       537,645  
Reinvestment of distributions
    1,852       12,764       54       292  
Shares redeemed
    (1,270 )     (8,860 )     (2,689 )     (18,066 )
 
 
      14,407       99,858       78,924       519,871  
 
 
NET INCREASE (DECREASE)
    (31,923 )   $ (332,500 )     1,674,294     $ 9,585,363  
 
 
 
(a) Service Shares liquidated on March 13, 2009.
 
 
 
 44


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 

 
 
 
                                                                 
    Retirement Strategy 2040 Portfolio     Retirement Strategy 2050 Portfolio  
   
    For the Six Months Ended
    For the Fiscal Year Ended
    For the Six Months Ended
    For the Fiscal Year Ended
 
    February 28, 2010 (Unaudited)     August 31, 2009     February 28, 2010 (Unaudited)     August 31, 2009  
   
    Shares     Dollars     Shares     Dollars     Shares     Dollars     Shares     Dollars  
   
                                                                 
      396,098     $ 2,704,855       997,186     $ 5,452,255       126,295     $ 859,062       351,901     $ 1,899,632  
      26,714       178,716       22,956       121,437       8,193       54,568       5,778       30,275  
      (221,635 )     (1,524,013 )     (233,922 )     (1,327,219 )     (77,548 )     (527,206 )     (58,323 )     (327,883 )
 
 
      201,177       1,359,558       786,220       4,246,473       56,940       386,424       299,356       1,602,024  
 
 
                                                                 
      22,802       156,432       17,429       95,318       9,620       63,682       3,290       16,320  
      31,502       211,378       75,101       399,539       25,797       172,324       68,986       362,177  
      (317,507 )     (2,225,027 )     (2,377 )     (11,887 )                 (255 )     (1,607 )
 
 
      (263,203 )     (1,857,217 )     90,153       482,970       35,417       236,006       72,021       376,890  
 
 
                                                                 
                                                 
                  67       357                   61       320  
                  (1,100 )     (5,053 )                 (1,095 )     (4,928 )
 
 
                  (1,033 )     (4,696 )                 (1,034 )     (4,608 )
 
 
                                                                 
      4       25       7       41       7       47       7       39  
      29       193       71       379       23       158       66       342  
      (4 )     (25 )     (7 )     (41 )     (7 )     (47 )     (7 )     (39 )
 
 
      29       193       71       379       23       158       66       342  
 
 
                                                                 
      2,824       19,181       29,453       188,271       2,037       13,664       115       701  
      807       5,401       64       338       35       227       57       301  
      (160 )     (1,101 )     (6 )     (37 )     (2 )     (11 )     (7 )     (44 )
 
 
      3,471       23,481       29,511       188,572       2,070       13,880       165       958  
 
 
      (58,526 )   $ (473,985 )     904,922     $ 4,913,698       94,450     $ 636,468       370,574     $ 1,975,606  
 
 
 
 
 
45 


 

GOLDMAN SACHS RETIREMENT STRATEGY 2010 PORTFOLIO
 
 

Financial Highlights
Selected Data for a Share Outstanding Throughout Each Period
 
                                                                 
              Income (loss) from
    Distributions
     
              investment operations     to shareholders      
        Net asset
                                         
        value,
    Net
    Net realized
    Total from
    From net
    From net
           
        beginning
    investment
    and unrealized
    investment
    investment
    realized
    Total
     
    Year - Share Class   of period     income(a)     gain (loss)     operations     income     gains     distributions      
 
 FOR THE SIX MONTHS ENDED FEBRUARY 28, (UNAUDITED)
                                                                 
                                                                 
    2010 - A   $ 7.69     $ 0.13 (d)   $ 0.32     $ 0.45     $ (0.23 )   $ (e)   $ (0.23 )    
    2010 - Institutional     7.74       0.16 (d)     0.30       0.46       (0.25 )     (e)     (0.25 )    
    2010 - IR     7.72       0.14 (d)     0.32       0.46       (0.24 )     (e)     (0.24 )    
    2010 - R     7.71       0.12 (d)     0.33       0.45       (0.21 )     (e)     (0.21 )    
                                                                 
                                                                 
 FOR THE FISCAL YEAR ENDED AUGUST 31,
                                                                 
                                                                 
    2009 - A     9.03       0.26 (d)     (1.29 )     (1.03 )     (0.24 )     (0.07 )     (0.31 )    
    2009 - Institutional     9.06       0.28 (d)     (1.28 )     (1.00 )     (0.25 )     (0.07 )     (0.32 )    
    2009 - IR     9.04       0.27 (d)     (1.28 )     (1.01 )     (0.24 )     (0.07 )     (0.31 )    
    2009 - R     9.01       0.24 (d)     (1.28 )     (1.04 )     (0.19 )     (0.07 )     (0.26 )    
                                                                 
                                                                 
 FOR THE PERIOD ENDED AUGUST 31,
                                                                 
                                                                 
    2008 - A (Commenced September 5, 2007)     10.00       0.30       (1.01 )     (0.71 )     (0.20 )     (0.06 )     (0.26 )    
    2008 - Institutional (Commenced September 5, 2007)     10.00       0.32       (0.98 )     (0.66 )     (0.22 )     (0.06 )     (0.28 )    
    2008 - IR (Commenced November 30, 2007)     10.28       0.32       (1.28 )     (0.96 )     (0.22 )     (0.06 )     (0.28 )    
    2008 - R (Commenced November 30, 2007)     10.28       0.31       (1.31 )     (1.00 )     (0.21 )     (0.06 )     (0.27 )    
                                                                 
                                                                 
     
     
(a)  Recognition of net investment income by the Portfolio is affected by the timing of declaration of dividends by the Underlying Funds in which the Portfolio invests.
(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 returns would be reduced if a sales or redemption charge was taken into account. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Total returns for periods less than one full year are not annualized.
(c)  Expense ratios exclude the expenses of the Underlying Funds in which the Portfolio invests.
(d)  Calculated based on the average shares outstanding methodology.
(e)  Amount is less than $0.005 per share.
(f)  Annualized.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 46


 

GOLDMAN SACHS RETIREMENT STRATEGY 2010 PORTFOLIO
 
 

 
 
 
 
                                                             
                                  Ratio of
           
                Net assets,
    Ratio of
    Ratio of
    net investment
           
    Net asset
          end of
    net expenses
    total expenses
    income
    Portfolio
     
    value, end
    Total
    period
    to average
    to average
    to average
    turnover
     
    of period     return(b)     (in 000s)     net assets(c)     net assets(c)     net assets(a)     rate      
 
 
                                                             
                                                             
    $ 7.91       5.85 %   $ 7,155       0.55 %(f)     1.99 %(f)     3.25 %(f)     35 %    
      7.95       6.01       6,700       0.15 (f)     1.59 (f)     3.97 (f)     35      
      7.94       6.02       9       0.30 (f)     1.74 (f)     3.62 (f)     35      
      7.95       5.83       29       0.80 (f)     2.24 (f)     3.02 (f)     35      
                                                             
                                                             
 
                                                             
                                                             
      7.69       (10.77 )     5,065       0.55       3.16       3.91       54      
      7.74       (10.38 )     8,330       0.15       2.76       4.13       54      
      7.72       (10.59 )     8       0.30       2.91       3.97       54      
      7.71       (10.98 )     8       0.80       3.41       3.50       54      
                                                             
                                                             
 
                                                             
                                                             
      9.03       (7.27 )     1,604       0.55 (f)     3.54 (f)     2.59 (f)     41      
      9.06       (6.85 )     9,296       0.15 (f)     3.14 (f)     2.74 (f)     41      
      9.04       (9.58 )     9       0.30 (f)     3.29 (f)     2.37 (f)     41      
      9.01       (9.92 )     9       0.80 (f)     3.79 (f)     2.30 (f)     41      
                                                             
                                                             
 
 
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
47 


 

GOLDMAN SACHS RETIREMENT STRATEGY 2015 PORTFOLIO
 
 

Financial Highlights
Selected Data for a Share Outstanding Throughout Each Period
 
                                                                 
              Income (loss) from
    Distributions
     
              investment operations     to shareholders      
        Net asset
                                         
        value,
    Net
    Net realized
    Total from
    From net
    From net
           
        beginning
    investment
    and unrealized
    investment
    investment
    realized
    Total
     
    Year - Share Class   of period     income(a)     gain (loss)     operations     income     gains     distributions      
 
 FOR THE SIX MONTHS ENDED FEBRUARY 28, (UNAUDITED)
                                                                 
                                                                 
    2010 - A   $ 7.29     $ 0.13 (d)   $ 0.30     $ 0.43     $ (0.21 )   $     $ (0.21 )    
    2010 - Institutional     7.33       0.15 (d)     0.29       0.44       (0.23 )           (0.23 )    
    2010 - IR     7.31       0.14 (d)     0.30       0.44       (0.22 )           (0.22 )    
    2010 - R     7.30       0.12 (d)     0.29       0.41       (0.21 )           (0.21 )    
                                                                 
                                                                 
 FOR THE FISCAL YEAR ENDED AUGUST 31,
                                                                 
                                                                 
    2009 - A     8.86       0.23 (d)     (1.45 )     (1.22 )     (0.21 )     (0.14 )     (0.35 )    
    2009 - Institutional     8.89       0.26 (d)     (1.46 )     (1.20 )     (0.22 )     (0.14 )     (0.36 )    
    2009 - IR     8.87       0.25 (d)     (1.46 )     (1.21 )     (0.21 )     (0.14 )     (0.35 )    
    2009 - R     8.84       0.21 (d)     (1.44 )     (1.23 )     (0.17 )     (0.14 )     (0.31 )    
                                                                 
                                                                 
 FOR THE PERIOD ENDED AUGUST 31,
                                                                 
                                                                 
    2008 - A (Commenced September 5, 2007)     10.00       0.30       (1.16 )     (0.86 )     (0.22 )     (0.06 )     (0.28 )    
    2008 - Institutional (Commenced September 5, 2007)     10.00       0.32       (1.13 )     (0.81 )     (0.24 )     (0.06 )     (0.30 )    
    2008 - IR (Commenced November 30, 2007)     10.26       0.31       (1.40 )     (1.09 )     (0.24 )     (0.06 )     (0.30 )    
    2008 - R (Commenced November 30, 2007)     10.26       0.31       (1.44 )     (1.13 )     (0.23 )     (0.06 )     (0.29 )    
                                                                 
                                                                 
     
     
(a)  Recognition of net investment income by the Portfolio is affected by the timing of declaration of dividends by the Underlying Funds in which the Portfolio invests.
(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 returns would be reduced if a sales or redemption charge was taken into account. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Total returns for periods less than one full year are not annualized.
(c)  Expense ratios exclude the expenses of the Underlying Funds in which the Portfolio invests.
(d)  Calculated based on the average shares outstanding methodology.
(e)  Annualized.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 48


 

GOLDMAN SACHS RETIREMENT STRATEGY 2015 PORTFOLIO
 
 

 
 
 
 
                                                             
                                  Ratio of
           
                Net assets,
    Ratio of
    Ratio of
    net investment
           
    Net asset
          end of
    net expenses
    total expenses
    income
    Portfolio
     
    value, end
    Total
    period
    to average
    to average
    to average
    turnover
     
    of period     return(b)     (in 000s)     net assets(c)     net assets(c)     net assets(a)     rate      
 
 
                                                             
                                                             
    $ 7.51       5.93 %   $ 5,364       0.55 %(e)     2.01 %(e)     3.32 %(e)     29 %    
      7.54       6.07       7,520       0.15 (e)     1.61 (e)     3.95 (e)     29      
      7.53       6.09       8       0.30 (e)     1.76 (e)     3.60 (e)     29      
      7.50       5.67       43       0.80 (e)     2.26 (e)     3.31 (e)     29      
                                                             
                                                             
 
                                                             
                                                             
      7.29       (12.96 )     4,287       0.55       3.23       3.58       39      
      7.33       (12.64 )     8,946       0.15       2.83       3.95       39      
      7.31       (12.85 )     8       0.30       2.98       3.81       39      
      7.30       (13.25 )     12       0.80       3.48       3.30       39      
                                                             
                                                             
 
                                                             
                                                             
      8.86       (8.80 )     1,741       0.55 (e)     3.57 (e)     2.27 (e)     34      
      8.89       (8.38 )     9,855       0.15 (e)     3.17 (e)     2.60 (e)     34      
      8.87       (10.90 )     9       0.30 (e)     3.32 (e)     2.79 (e)     34      
      8.84       (11.24 )     9       0.80 (e)     3.82 (e)     2.25 (e)     34      
                                                             
                                                             
 
 
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
49 


 

GOLDMAN SACHS RETIREMENT STRATEGY 2020 PORTFOLIO
 
 

Financial Highlights
Selected Data for a Share Outstanding Throughout Each Period
 
                                                                 
              Income (loss) from
    Distributions
     
              investment operations     to shareholders      
        Net asset
                                         
        value,
    Net
    Net realized
    Total from
    From net
    From net
           
        beginning
    investment
    and unrealized
    investment
    investment
    realized
    Total
     
    Year - Share Class   of period     income(a)     gain (loss)     operations     income     gains     distributions      
 
 FOR THE SIX MONTHS ENDED FEBRUARY 28, (UNAUDITED)
                                                                 
                                                                 
    2010 - A   $ 7.06     $ 0.12 (d)   $ 0.29     $ 0.41     $ (0.22 )   $     $ (0.22 )    
    2010 - Institutional     7.10       0.15 (d)     0.28       0.43       (0.24 )           (0.24 )    
    2010 - IR     7.09       0.13 (d)     0.29       0.42       (0.23 )           (0.23 )    
    2010 - R     7.08       0.11 (d)     0.30       0.41       (0.23 )           (0.23 )    
                                                                 
                                                                 
 FOR THE FISCAL YEAR ENDED AUGUST 31,
                                                                 
                                                                 
    2009 - A     8.74       0.19 (d)     (1.57 )     (1.38 )     (0.15 )     (0.15 )     (0.30 )    
    2009 - Institutional     8.77       0.23 (d)     (1.58 )     (1.35 )     (0.17 )     (0.15 )     (0.32 )    
    2009 - IR     8.75       0.22 (d)     (1.58 )     (1.36 )     (0.15 )     (0.15 )     (0.30 )    
    2009 - R     8.72       0.13 (d)     (1.51 )     (1.38 )     (0.11 )     (0.15 )     (0.26 )    
                                                                 
                                                                 
 FOR THE PERIOD ENDED AUGUST 31,
                                                                 
                                                                 
    2008 - A (Commenced September 5, 2007)     10.00       0.30       (1.27 )     (0.97 )     (0.23 )     (0.06 )     (0.29 )    
    2008 - Institutional (Commenced September 5, 2007)     10.00       0.31       (1.24 )     (0.93 )     (0.24 )     (0.06 )     (0.30 )    
    2008 - IR (Commenced November 30, 2007)     10.25       0.31       (1.51 )     (1.20 )     (0.24 )     (0.06 )     (0.30 )    
    2008 - R (Commenced November 30, 2007)     10.25       0.30       (1.53 )     (1.23 )     (0.24 )     (0.06 )     (0.30 )    
                                                                 
                                                                 
     
     
(a)  Recognition of net investment income by the Portfolio is affected by the timing of declaration of dividends by the Underlying Funds in which the Portfolio invests.
(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 returns would be reduced if a sales or redemption charge was taken into account. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Total returns for periods less than one full year are not annualized.
(c)  Expense ratios exclude the expenses of the Underlying Funds in which the Portfolio invests.
(d)  Calculated based on the average shares outstanding methodology.
(e)  Annualized.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 50


 

GOLDMAN SACHS RETIREMENT STRATEGY 2020 PORTFOLIO
 
 

 
 
 
 
                                                             
                                  Ratio of
           
                Net assets,
    Ratio of
    Ratio of
    net investment
           
    Net asset
          end of
    net expenses
    total expenses
    income
    Portfolio
     
    value, end
    Total
    period
    to average
    to average
    to average
    turnover
     
    of period     return(b)     (in 000s)     net assets(c)     net assets(c)     net assets(a)     rate      
 
 
                                                             
                                                             
    $ 7.25       5.81 %   $ 8,779       0.55 %(e)     1.85 %(e)     3.36 %(e)     32 %    
      7.29       6.12       6,421       0.15 (e)     1.45 (e)     4.06 (e)     32      
      7.28       5.98       8       0.30 (e)     1.60 (e)     3.63 (e)     32      
      7.26       5.72       126       0.80 (e)     2.10 (e)     3.11 (e)     32      
                                                             
                                                             
 
                                                             
                                                             
      7.06       (15.06 )     7,658       0.55       3.00       3.04       45      
      7.10       (14.69 )     7,744       0.15       2.60       3.73       45      
      7.09       (14.80 )     8       0.30       2.75       3.58       45      
      7.08       (15.21 )     55       0.80       3.25       1.98       45      
                                                             
                                                             
 
                                                             
                                                             
      8.74       (9.94 )     3,049       0.55 (e)     3.47 (e)     2.06 (e)     33      
      8.77       (9.56 )     9,040       0.15 (e)     3.07 (e)     2.48 (e)     33      
      8.75       (11.97 )     9       0.30 (e)     3.22 (e)     2.68 (e)     33      
      8.72       (12.31 )     9       0.80 (e)     3.72 (e)     2.17 (e)     33      
                                                             
                                                             
 
 
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
51 


 

GOLDMAN SACHS RETIREMENT STRATEGY 2030 PORTFOLIO
 
 

Financial Highlights
Selected Data for a Share Outstanding Throughout Each Period
 
                                                                 
              Income (loss) from
    Distributions
     
        Net asset
    investment operations     to shareholders      
        value,
    Net
    Net realized
    Total from
    From net
    From net
           
        beginning
    investment
    and unrealized
    investment
    investment
    realized
    Total
     
    Year - Share Class   of period     income(a)     gain (loss)     operations     income     gains     distributions      
 
 FOR THE SIX MONTHS ENDED FEBRUARY 28, (UNAUDITED)
                                                                 
                                                                 
    2010 - A   $ 6.65     $ 0.12 (d)   $ 0.27     $ 0.39     $ (0.15 )   $     $ (0.15 )    
    2010 - Institutional     6.68       0.15 (d)     0.25       0.40       (0.17 )           (0.17 )    
    2010 - IR     6.67       0.13 (d)     0.26       0.39       (0.16 )           (0.16 )    
    2010 - R     6.66       0.11 (d)     0.28       0.39       (0.16 )           (0.16 )    
                                                                 
                                                                 
 FOR THE FISCAL YEAR ENDED AUGUST 31,
                                                                 
                                                                 
    2009 - A     8.53       0.14 (d)     (1.69 )     (1.55 )     (0.18 )     (0.15 )     (0.33 )    
    2009 - Institutional     8.55       0.20 (d)     (1.73 )     (1.53 )     (0.19 )     (0.15 )     (0.34 )    
    2009 - IR     8.53       0.20 (d)     (1.73 )     (1.53 )     (0.18 )     (0.15 )     (0.33 )    
    2009 - R     8.50       0.02 (d)     (1.57 )     (1.55 )     (0.14 )     (0.15 )     (0.29 )    
                                                                 
                                                                 
 FOR THE PERIOD ENDED AUGUST 31,
                                                                 
                                                                 
    2008 - A (Commenced September 5, 2007)     10.00       0.29       (1.45 )     (1.16 )     (0.24 )     (0.07 )     (0.31 )    
    2008 - Institutional (Commenced September 5, 2007)     10.00       0.30       (1.43 )     (1.13 )     (0.25 )     (0.07 )     (0.32 )    
    2008 - IR (Commenced November 30, 2007)     10.22       0.30       (1.67 )     (1.37 )     (0.25 )     (0.07 )     (0.32 )    
    2008 - R (Commenced November 30, 2007)     10.22       0.29       (1.69 )     (1.40 )     (0.25 )     (0.07 )     (0.32 )    
                                                                 
                                                                 
     
     
(a)  Recognition of net investment income by the Portfolio is affected by the timing of declaration of dividends by the Underlying Funds in which the Portfolio invests.
(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 returns would be reduced if a sales or redemption charge was taken into account. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Total returns for periods less than one full year are not annualized.
(c)  Expense ratios exclude the expenses of the Underlying Funds in which the Portfolio invests.
(d)  Calculated based on the average shares outstanding methodology.
(e)  Annualized.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 52


 

GOLDMAN SACHS RETIREMENT STRATEGY 2030 PORTFOLIO
 
 

 
 
 
 
 
                                                               
                                    Ratio of
           
                  Net assets,
    Ratio of
    Ratio of
    net investment
           
    Net asset
            end of
    net expenses
    total expenses
    income
    Portfolio
     
    value, end
      Total
    period
    to average
    to average
    to average
    turnover
     
    of period       return(b)     (in 000s)     net assets(c)     net assets(c)     net assets(a)     rate      
 
 
                                                               
                                                               
    $ 6.89         5.91 %   $ 15,661       0.55 %(e)     1.53 %(e)     3.45 %(e)     36 %    
      6.91         6.02       5,172       0.15 (e)     1.13 (e)     4.29 (e)     36      
      6.90         5.89       8       0.30 (e)     1.28 (e)     3.64 (e)     36      
      6.89         5.79       650       0.80 (e)     1.78 (e)     3.12 (e)     36      
                                                               
                                                               
 
                                                               
                                                               
      6.65         (17.33 )     12,749       0.55       2.66       2.48       39      
      6.68         (16.99 )     7,700       0.15       2.26       3.48       39      
      6.67         (17.10 )     7       0.30       2.41       3.37       39      
      6.66         (17.52 )     533       0.80       2.91       0.25       39      
                                                               
                                                               
 
                                                               
                                                               
      8.53         (11.97 )     3,747       0.55 (e)     3.42 (e)     1.91 (e)     39      
      8.55         (11.67 )     8,838       0.15 (e)     3.02 (e)     2.33 (e)     39      
      8.53         (13.77 )     9       0.30 (e)     3.17 (e)     2.65 (e)     39      
      8.50         (14.11 )     9       0.80 (e)     3.67 (e)     2.14 (e)     39      
                                                               
                                                               
 
 
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
53 


 

GOLDMAN SACHS RETIREMENT STRATEGY 2040 PORTFOLIO
 
 

 
Financial Highlights 
Selected Data for a Share Outstanding Throughout Each Period
 
 
                                                                 
              Income (loss) from
    Distributions
     
        Net asset
    investment operations     to shareholders      
        value,
    Net
    Net realized
    Total from
    From net
    From net
           
        beginning
    investment
    and unrealized
    investment
    investment
    realized
    Total
     
    Year - Share Class   of period     income(a)     gain (loss)     operations     income     gains     distributions      
 
 FOR THE SIX MONTHS ENDED FEBRUARY 28, (UNAUDITED)
                                                                 
                                                                 
    2010 - A   $ 6.48     $ 0.11 (d)   $ 0.27     $ 0.38     $ (0.17 )   $     $ (0.17 )    
    2010 - Institutional     6.51       0.14 (d)     0.25       0.39       (0.19 )           (0.19 )    
    2010 - IR     6.49       0.12 (d)     0.27       0.39       (0.18 )           (0.18 )    
    2010 - R     6.49       0.10 (d)     0.27       0.37       (0.17 )           (0.17 )    
                                                                 
                                                                 
 FOR THE FISCAL YEAR ENDED AUGUST 31,
                                                                 
                                                                 
    2009 - A     8.45       0.12 (d)     (1.72 )     (1.60 )     (0.16 )     (0.21 )     (0.37 )    
    2009 - Institutional     8.47       0.20 (d)     (1.77 )     (1.57 )     (0.18 )     (0.21 )     (0.39 )    
    2009 - IR     8.45       0.19 (d)     (1.78 )     (1.59 )     (0.16 )     (0.21 )     (0.37 )    
    2009 - R     8.42       0.04 (d)     (1.64 )     (1.60 )     (0.12 )     (0.21 )     (0.33 )    
                                                                 
                                                                 
 FOR THE PERIOD ENDED AUGUST 31,
                                                                 
                                                                 
    2008 - A (Commenced September 5, 2007)     10.00       0.29       (1.52 )     (1.23 )     (0.25 )     (0.07 )     (0.32 )    
    2008 - Institutional (Commenced September 5, 2007)     10.00       0.30       (1.50 )     (1.20 )     (0.26 )     (0.07 )     (0.33 )    
    2008 - IR (Commenced November 30, 2007)     10.21       0.30       (1.73 )     (1.43 )     (0.26 )     (0.07 )     (0.33 )    
    2008 - R (Commenced November 30, 2007)     10.21       0.30       (1.77 )     (1.47 )     (0.25 )     (0.07 )     (0.32 )    
                                                                 
                                                                 
     
     
(a) Recognition of net investment income by the Portfolio is affected by the timing of declaration of dividends by the Underlying Funds in which the Portfolio invests.
(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 returns would be reduced if a sales or redemption charge was taken into account. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Total returns for periods less than one full year are not annualized.
(c) Expense ratios exclude the expenses of the Underlying Funds in which the Portfolio invests.
(d) Calculated based on the average shares outstanding methodology.
(e) Annualized.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 54


 

GOLDMAN SACHS RETIREMENT STRATEGY 2040 PORTFOLIO
 
 

 
 
 
 
 
                                                             
                                  Ratio of
           
                Net assets,
    Ratio of
    Ratio of
    net investment
           
    Net asset
          end of
    net expenses
    total expenses
    income
    Portfolio
     
    value, end
    Total
    period
    to average
    to average
    to average
    turnover
     
    of period     return(b)     (in 000s)     net assets(c)     net assets(c)     net assets(a)     rate      
 
 
                                                             
                                                             
    $ 6.69       5.82 %   $ 7,988       0.55 %(e)     1.95 %(e)     3.33 %(e)     35 %    
      6.71       5.94       5,779       0.15 (e)     1.55 (e)     4.05 (e)     35      
      6.70       5.97       7       0.30 (e)     1.70 (e)     3.60 (e)     35      
      6.69       5.70       227       0.80 (e)     2.20 (e)     3.09 (e)     35      
                                                             
                                                             
 
                                                             
                                                             
      6.48       (17.91 )     6,435       0.55       3.41       2.24       36      
      6.51       (17.53 )     7,314       0.15       3.01       3.45       36      
      6.49       (17.77 )     7       0.30       3.16       3.31       36      
      6.49       (18.08 )     198       0.80       3.66       0.73       36      
                                                             
                                                             
 
                                                             
                                                             
      8.45       (12.73 )     1,751       0.55 (e)     3.64 (e)     1.83 (e)     32      
      8.47       (12.43 )     8,760       0.15 (e)     3.24 (e)     2.26 (e)     32      
      8.45       (14.43 )     9       0.30 (e)     3.39 (e)     2.59 (e)     32      
      8.42       (14.77 )     9       0.80 (e)     3.89 (e)     2.08 (e)     32      
                                                             
                                                             
 
 
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
55 


 

GOLDMAN SACHS RETIREMENT STRATEGY 2050 PORTFOLIO
 
 

Financial Highlights
Selected Data for a Share Outstanding Throughout Each Period
 
                                                                 
              Income (loss) from
    Distributions
     
              investment operations     to shareholders      
        Net asset
                                         
        value,
    Net
    Net realized
    Total from
    From net
    From net
           
        beginning
    investment
    and unrealized
    investment
    investment
    realized
    Total
     
    Year - Share Class   of period     income(a)     gain (loss)     operations     income     gains     distributions      
 
 FOR THE SIX MONTHS ENDED FEBRUARY 28, (UNAUDITED)
                                                                 
                                                                 
    2010 - A   $ 6.42     $ 0.11 (d)   $ 0.26     $ 0.37     $ (0.14 )   $     $ (0.14 )    
    2010 - Institutional     6.44       0.12 (d)     0.27       0.39       (0.16 )           (0.16 )    
    2010 - IR     6.43       0.12 (d)     0.27       0.39       (0.15 )           (0.15 )    
    2010 - R     6.43       0.08 (d)     0.27       0.35       (0.13 )           (0.13 )    
                                                                 
                                                                 
 FOR THE FISCAL YEAR ENDED AUGUST 31,
                                                                 
                                                                 
    2009 - A     8.40       0.10 (d)     (1.74 )     (1.64 )     (0.09 )     (0.25 )     (0.34 )    
    2009 - Institutional     8.43       0.18 (d)     (1.82 )     (1.64 )     (0.10 )     (0.25 )     (0.35 )    
    2009 - IR     8.41       0.17 (d)     (1.81 )     (1.64 )     (0.09 )     (0.25 )     (0.34 )    
    2009 - R     8.38       0.14 (d)     (1.79 )     (1.65 )     (0.05 )     (0.25 )     (0.30 )    
                                                                 
                                                                 
 FOR THE PERIOD ENDED AUGUST 31,
                                                                 
                                                                 
    2008 - A (Commenced September 5, 2007)     10.00       0.29       (1.57 )     (1.28 )     (0.25 )     (0.07 )     (0.32 )    
    2008 - Institutional (Commenced September 5, 2007)     10.00       0.30       (1.54 )     (1.24 )     (0.26 )     (0.07 )     (0.33 )    
    2008 - IR (Commenced November 30, 2007)     10.21       0.30       (1.77 )     (1.47 )     (0.26 )     (0.07 )     (0.33 )    
    2008 - R (Commenced November 30, 2007)     10.21       0.29       (1.79 )     (1.50 )     (0.26 )     (0.07 )     (0.33 )    
                                                                 
                                                                 
     
     
(a)  Recognition of net investment income by the Portfolio is affected by the timing of declaration of dividends by the Underlying Funds in which the Portfolio invests.
(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 returns would be reduced if a sales or redemption charge was taken into account. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Total returns for periods less than one full year are not annualized.
(c)  Expense ratios exclude the expenses of the Underlying Funds in which the Portfolio invests.
(d)  Calculated based on the average shares outstanding methodology.
(e)  Annualized.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 56


 

GOLDMAN SACHS RETIREMENT STRATEGY 2050 PORTFOLIO
 
 

 
 
 
 
 
                                                             
                                  Ratio of
           
                Net assets,
    Ratio of
    Ratio of
    net investment
           
    Net asset
          end of
    net expenses
    total expenses
    income
    Portfolio
     
    value, end
    Total
    period
    to average
    to average
    to average
    turnover
     
    of period     return(b)     (in 000s)     net assets(c)     net assets(c)     net assets(a)     rate      
 
 
                                                             
                                                             
    $ 6.65       5.74 %   $ 2,765       0.55 %(e)     2.44 %(e)     3.27 %(e)     19 %    
      6.67       5.99       7,619       0.15 (e)     2.04 (e)     3.66 (e)     19      
      6.67       6.01       7       0.30 (e)     2.19 (e)     3.51 (e)     19      
      6.65       5.49       22       0.80 (e)     2.69 (e)     2.48 (e)     19      
                                                             
                                                             
 
                                                             
                                                             
      6.42       (18.64 )     2,304       0.55       4.38       1.76       28      
      6.44       (18.51 )     7,130       0.15       3.98       3.21       28      
      6.43       (18.62 )     7       0.30       4.13       3.09       28      
      6.43       (18.93 )     8       0.80       4.63       2.54       28      
                                                             
                                                             
 
                                                             
                                                             
      8.40       (13.18 )     501       0.55 (e)     3.79 (e)     1.74 (e)     39      
      8.43       (12.77 )     8,716       0.15 (e)     3.39 (e)     2.13 (e)     39      
      8.41       (14.77 )     9       0.30 (e)     3.54 (e)     2.35 (e)     39      
      8.38       (15.11 )     8       0.80 (e)     4.04 (e)     1.87 (e)     39      
                                                             
                                                             
 
 
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
57 


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 
Portfolio Expenses — Six Month Period Ended February 28, 2010 (Unaudited)
 
As a shareholder of Class A, Institutional, Class IR or Class R Shares of a Portfolio, you incur two types of costs: (1) transaction costs, including sales charges on purchase payments (with respect to Class A Shares), and redemption fees (if any); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees (with respect to Class A and Class R Shares); and other Portfolio expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in Class A, Institutional, Class IR and Class R Shares of the Portfolios and to compare these costs with the ongoing costs of investing in other mutual funds.
 
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2009 through February 28, 2010.
 
Actual Expenses — The first line under each share class in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account during this period.
 
Hypothetical Example for Comparison Purposes — The second line under each share class in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolios’ actual net expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolios’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolios and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges, redemption fees, or exchange fees and do not include expenses of Underlying Funds in which the Portfolios invest. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
 
                                                                                           
      Retirement Strategy Portfolio 2010     Retirement Strategy Portfolio 2015     Retirement Strategy Portfolio 2020
                  Expenses
                Expenses
                Expenses
      Beginning
    Ending
    Paid for the
    Beginning
    Ending
    Paid for the
    Beginning
    Ending
    Paid for the
      Account Value
    Account Value
    6 months ended
    Account Value
    Account Value
    6 months ended
    Account Value
    Account Value
    6 months ended
Share Class     9/1/09     2/28/10     2/28/10*     9/1/09     2/28/10     2/28/10*     9/1/09     2/28/10     2/28/10*
Class A
                                                                                         
Actual
    $ 1,000.00       $ 1,058.50       $ 2.81       $ 1,000.00       $ 1,059.30       $ 2.81       $ 1,000.00       $ 1,058.10       $ 2.81  
Hypothetical 5% return
      1,000.00         1,022.07 +       2.76         1,000.00         1,022.07 +       2.76         1,000.00         1,022.07 +       2.76  
 
Institutional
                                                                                         
Actual
      1,000.00         1,060.10         0.77         1,000.00         1,060.70         0.77         1,000.00         1,061.20         0.77  
Hypothetical 5% return
      1,000.00         1,024.05 +       0.75         1,000.00         1,024.05 +       0.75         1,000.00         1,024.05 +       0.75  
 
Class IR
                                                                                         
Actual
      1,000.00         1,060.20         1.53         1,000.00         1,060.90         1.53         1,000.00         1,059.80         1.53  
Hypothetical 5% return
      1,000.00         1,023.31 +       1.51         1,000.00         1,023.31 +       1.51         1,000.00         1,023.31 +       1.51  
 
Class R
                                                                                         
Actual
      1,000.00         1,058.30         4.08         1,000.00         1,056.70         4.08         1,000.00         1,057.20         4.08  
Hypothetical 5% return
      1,000.00         1,020.83 +       4.01         1,000.00         1,020.83 +       4.01         1,000.00         1,020.83 +       4.01  
 
 
 

58


 

GOLDMAN SACHS RETIREMENT STRATEGIES PORTFOLIOS
 
 
Portfolio Expenses — Six Month Period Ended February 28, 2010 (Unaudited) (continued)
 
                                                                                           
      Retirement Strategy Portfolio 2030     Retirement Strategy Portfolio 2040     Retirement Strategy Portfolio 2050
                  Expenses
                Expenses
                Expenses
      Beginning
    Ending
    Paid for the
    Beginning
    Ending
    Paid for the
    Beginning
    Ending
    Paid for the
      Account Value
    Account Value
    6 months ended
    Account Value
    Account Value
    6 months ended
    Account Value
    Account Value
    6 months ended
Share Class     9/1/09     2/28/10     2/28/10*     9/1/09     2/28/10     2/28/10*     9/1/09     2/28/10     2/28/10*
Class A
                                                                                         
Actual
    $ 1,000.00       $ 1,059.10       $ 2.81       $ 1,000.00       $ 1,058.20       $ 2.81       $ 1,000.00       $ 1,057.40       $ 2.81  
Hypothetical 5% return
      1,000.00         1,022.07 +       2.76         1,000.00         1,022.07 +       2.76         1,000.00         1,022.07 +       2.76  
 
Institutional
                                                                                         
Actual
      1,000.00         1,060.20         0.77         1,000.00         1,059.40         0.77         1,000.00         1,059.90         0.77  
Hypothetical 5% return
      1,000.00         1,024.05 +       0.75         1,000.00         1,024.05 +       0.75         1,000.00         1,024.05 +       0.75  
 
Class IR
                                                                                         
Actual
      1,000.00         1,058.90         1.53         1,000.00         1,059.70         1.53         1,000.00         1,060.10         1.53  
Hypothetical 5% return
      1,000.00         1,023.31         1.51         1,000.00         1,023.31 +       1.51         1,000.00         1,023.31 +       1.51  
 
Class R
                                                                                         
Actual
      1,000.00         1,057.90         4.08         1,000.00         1,057.00         4.08         1,000.00         1,054.90         4.08  
Hypothetical 5% return
      1,000.00         1,020.83 +       4.01         1,000.00         1,020.83 +       4.01         1,000.00         1,020.83 +       4.01  
 
 
 
*   Expenses for each share class are calculated using each Portfolio’s annualized net expense ratio for each class, which represents the ongoing expenses as a percentage of net assets for the six months ended February 28, 2010. Expenses are calculated by multiplying the annualized net expense ratio by the average account value for the period; then multiplying the result by the number of days in the most recent fiscal half year; and then dividing that result by the number of days in the fiscal year. The annualized net expense ratios for the period were as follows:
 
                                 
Portfolio   Class A     Institutional     Class IR     Class R  
   
Retirement Strategy 2010
    0.55 %     0.15 %     0.30 %     0.80 %
Retirement Strategy 2015
    0.55       0.15       0.30       0.80  
Retirement Strategy 2020
    0.55       0.15       0.30       0.80  
Retirement Strategy 2030
    0.55       0.15       0.30       0.80  
Retirement Strategy 2040
    0.55       0.15       0.30       0.80  
Retirement Strategy 2050
    0.55       0.15       0.30       0.80  
 
 
+   Hypothetical expenses are based on each Portfolio’s actual annualized net expense ratios and an assumed rate of return of 5% per year before expenses.
 
 

59


 

 
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FUNDS PROFILE
 
 

Goldman Sachs Funds
 
[GRAPHIC]
 
Goldman Sachs is a premier financial services firm, known since 1869 for creating thoughtful and customized investment solutions in complex global markets.
 
Today, the Investment Management Division of Goldman Sachs serves a diverse set of clients worldwide, including private institutions, public entities and individuals. With portfolio management teams located around the world — and $753.4 billion in assets under management as of December 31, 2009 — our investment professionals bring firsthand knowledge of local markets to every investment decision. Goldman Sachs Asset Management ranks in the top 10 asset management firms worldwide, based on assets under management.1
 
OVERVIEW OF GOLDMAN SACHS FUNDS
(FLOW CHART)
 
         
Money Market2
n Institutional Liquid Assets Prime
Obligations Portfolio
n Institutional Liquid Assets
Tax-Exempt Diversified Portfolio
n Financial Square Federal Fund
n Financial Square Government Fund
n Financial Square Money
Market Fund
n Financial Square Prime
Obligations Fund
n Financial Square Tax-Free
Money Market Fund
n Financial Square Treasury
Instruments Fund
n Financial Square Treasury
Obligations Fund

Fixed Income

Short Duration and Government
n Enhanced Income Fund
n Ultra-Short Duration Govt. Fund
n Short Duration Government Fund
n Government Income Fund
n Inflation Protected Securities Fund

Multi-Sector
n Core Fixed Income Fund
n Core Plus Fixed Income Fund
n Global Income Fund

Municipal and Tax-Free
n High Yield Municipal Fund
n Municipal Income Fund
n Short Duration Tax-Free Fund

Single Sector
n Investment Grade Credit Fund
n U.S. Mortgages Fund
 
n High Yield Fund
n Emerging Markets Debt Fund
n Local Emerging Markets Debt Fund

Corporate Credit
n Credit Strategies Fund

Fundamental Equity
n Growth and Income Fund
n Small Cap Value Fund
n Mid Cap Value Fund
n Large Cap Value Fund
n Capital Growth Fund
n Strategic Growth Fund
n Small/Mid Cap Growth Fund
n All Cap Growth Fund
n Concentrated Growth Fund
n Tollkeeper FundSM
n Growth Opportunities Fund
n U.S. Equity Fund

Structured Equity
n Balanced Fund
n Structured Small Cap Equity Fund
n Structured U.S. Equity Fund
n Structured Small Cap Growth Fund
n Structured Large Cap Growth Fund
n Structured Large Cap Value Fund
n Structured Small Cap Value Fund
n Structured Tax-Managed
Equity Fund
n Structured International
Tax-Managed Equity Fund
n U.S. Equity Dividend and
Premium Fund
n International Equity Dividend and
Premium Fund
 
n Structured International Small
Cap Fund
n Structured International Equity Fund
n Structured Emerging Markets
Equity Fund
n Structured International Equity
Flex Fund

Fundamental Equity International
n Strategic International Equity Fund
n Concentrated International
Equity Fund
n International Small Cap Fund
n Asia Equity Fund
n Emerging Markets Equity Fund
n BRIC Fund (Brazil, Russia, India, China)

Select Satellite3
n Real Estate Securities Fund
n International Real Estate Securities Fund
n Commodity Strategy Fund
n Dynamic Allocation Fund
n Absolute Return Tracker Fund

Total Portfolio Solutions3
n Balanced Strategy Portfolio
n Growth and Income Strategy Portfolio
n Growth Strategy Portfolio
n Equity Growth Strategy Portfolio
n Income Strategies Portfolio
n Satellite Strategies Portfolio
n Retirement Strategies Portfolios
n Enhanced Dividend Global Equity
Portfolios
n Tax Advantaged Global Equity
Portfolios
 
 
1
Ranking for Goldman Sachs Group, Inc., includes Goldman Sachs Asset Management, Private Wealth Management and Merchant Banking 2008 year-end assets. Ranked 9th in Total Assets Worldwide. Pensions&Investments, May 2009.
 
2 An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. Although the Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Funds.
 
3 Individual Funds within the Total Portfolio Solutions and Select Satellite categories will have various placement on the risk/return spectrum and may have greater or lesser risk than that indicated by the placement of the general Total Portfolio Solutions or Select Satellite category.
 
  Firmwide assets under management includes assets managed by GSAM and its Investment Advisory Affiliates. The Goldman Sachs Tollkeeper FundSM is a registered service mark of Goldman, Sachs & Co.


 

     
TRUSTEES
Ashok N. Bakhru, Chairman
John P. Coblentz, Jr.
Diana M. Daniels
Patrick T. Harker
James A. McNamara
Jessica Palmer
Alan A. Shuch
Richard P. Strubel
  OFFICERS
James A. McNamara, President
George F. Travers, Principal Financial Officer
Peter V. Bonanno, Secretary
Scott M. McHugh, Treasurer
     
     
GOLDMAN, SACHS & CO.
Distributor and Transfer Agent
  GOLDMAN SACHS ASSET MANAGEMENT, L.P.
Investment Adviser
 
 
 
 
 
Visit our Web site at www.goldmansachsfunds.com to obtain the most recent month-end returns.
 
 
 
Goldman Sachs Asset Management, L.P. 200 West Street, New York, New York 10282
 
The reports concerning the Portfolios included in this shareholder report may contain certain forward-looking statements about the factors that may affect the performance of the Portfolios in the future. These statements are based on portfolio management’s predictions and expectations concerning certain future events and their expected impact on the Portfolios, such as performance of the economy as a whole and of specific industry sectors, changes in the levels of interest rates, the impact of developing world events, and other factors that may influence the future performance of the Portfolios. Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in portfolio management strategies from those currently expected to be employed.
 
Portfolios on the efficient frontier are optimal in both the sense that they offer maximal expected return for some given level of risk and minimal risk for some given level of expected return. The efficient frontier is the line created from the risk-reward graph, comprised of optimal portfolios. The optimal portfolios plotted along the curve have the highest expected return possible for the given amount of risk.
 
A description of the policies and procedures that the Portfolios use to determine how to vote proxies relating to portfolio securities and information regarding how a Portfolio voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (i) without charge, upon request by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders); and (ii) on the Securities and Exchange Commission Website at http://www.sec.gov.
 
The Portfolios file their complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Portfolios’ Form N-Q will become available on the SEC’s Website at http://www.sec.gov within 60 days after the Portfolios’ first and third fiscal quarters. When available, the Portfolios’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. and information on the operation of the Public Reference Room may also be obtained by calling 1-800-SEC-0330. When available, Form N-Q may be obtained upon request and without charge by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders).
 
Holdings and allocations shown may not be representative of current or future investments. Holdings and allocations may not include the Portfolios’ entire investment portfolio, which may change at any time. Portfolio holdings should not be relied on in making investment decisions and should not be construed as research or investment advice regarding particular securities.
 
This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus for the Portfolio. Please consider a Portfolio’s objectives, risks, and charges and expenses, and read the Prospectus carefully before investing. The Prospectus contains this and other information about the Portfolios. A prospectus for the Portfolios containing more complete information may be obtained from your authorized dealer or from Goldman, Sachs & Co. by calling (retail — 1-800-526-7384) (institutional — 1-800-621-2550).
 
Copyright 2010 Goldman, Sachs & Co. All rights reserved. 34780.MF.TMPL RTMTSAR10 / 1K / 03-10


 

     
ITEM 2.   CODE OF ETHICS.

  (a)   The information required by this Item is only required in an annual report on this Form N-CSR.
     
  (b)   During the period covered by this report, no amendments were made to the provisions of the Code of Ethics.
     
  (c)   During the period covered by this report, the registrant did not grant any waivers, including an implicit waiver, from any provision of the Code of Ethics.
     
  (d)   A copy of the Code of Ethics is available as provided in Item 12(a)(1) of this report.
     

     
ITEM 3.   AUDIT COMMITTEE FINANCIAL EXPERT.
The information required by this Item is only required in an annual report on this Form N-CSR.
     
ITEM 4.   PRINCIPAL ACCOUNTANT FEES AND SERVICES.
The information required by this Item is only required in an annual report on this Form N-CSR.


 

     
ITEM 5.   AUDIT COMMITTEE OF LISTED REGISTRANTS.
     
    The information required by this Item is only required in an annual report on this Form N-CSR.
     
ITEM 6.   SCHEDULE OF INVESTMENTS.
     
    The Schedule of Investments is included as part of the Semi-Annual Report to Stockholders filed under Item 1 of this Form N-CSR.
     
ITEM 7.   DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
     
    Not applicable.
     
ITEM 8.   PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
     
    Not applicable.
     
ITEM 9.   PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
     
    Not applicable.


 

     
ITEM 10.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
 
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees.
     
     
ITEM 11.   CONTROLS AND PROCEDURES.
     

  (a)   The registrant’s principal executive and principal financial officers, or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934, as amended.
     
  (b)   There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
     

     
ITEM 12.   EXHIBITS.

  (a)(1)     Goldman Sachs Trust's Code of Ethics for Principal Executive and Senior Financial Officers is incorporated by reference to Exhibit 11(a)(1) of the registrant's Form N-CSR filed on March 8, 2004 for its Real Estate Securities Fund (Accession Number 0000950123-04-0002984).
     
  (a)(2)   Exhibit 99.CERT Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.
     
  (b)   Exhibit 99.906CERT Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith.


 

SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

             
        Goldman Sachs Trust    
             
      /s/ James A. McNamara    
       
   
        By: James A. McNamara    
        Chief Executive Officer of    
        Goldman Sachs Trust    
             
      Date: May 7, 2010    

      Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

             
        /s/ James A. McNamara    
       
   
        By: James A. McNamara    
        Chief Executive Officer of    
        Goldman Sachs Trust    
             
        Date: May 7, 2010    
             
        /s/ George F. Travers    
       
   
        By: George F. Travers    
        Chief Financial Officer of    
        Goldman Sachs Trust    
             
        Date: May 7, 2010    

  EX-99.CERT 2 y83079exv99wcert.htm EX-99.CERT exv99wcert

CERTIFICATIONS
(Section 302)

     I, James A. McNamara, certify that:

     1. I have reviewed this report on Form N-CSR of Goldman Sachs Trust;

     2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

     3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

     4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

     a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

     b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

     c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

     d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

     5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions);

     a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

     b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 7, 2010

     
    /s/ James A. McNamara
   
    James A. McNamara
Principal Executive Officer

 


 

CERTIFICATIONS
(Section 302)

     I, George F. Travers, certify that:

     1. I have reviewed this report on Form N-CSR of Goldman Sachs Trust;

     2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

     3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

     4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

     a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

     b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

     c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

     d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

     5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions);

     a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

     b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 7, 2010

     
    /s/ George F. Travers
   
    George F. Travers
Principal Financial Officer

  EX-99.906CERT 3 y83079exv99w906cert.htm EX-99.906CERT exv99w906cert

EX-99.906CERT

Certification Under Section 906
of the Sarbanes-Oxley Act of 2002

James A. McNamara, Chief Executive Officer, and George F. Travers, Chief Financial Officer of Goldman Sachs Trust (the “Registrant”), each certify to the best of their knowledge that:

1.   The Registrant’s periodic report on Form N-CSR for the period ended February 28, 2010 (the “Form N-CSR”) fully complies with the requirements of section 15(d) of the Securities Exchange Act of 1934, as amended; and

2.   The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

         
Chief Executive Officer   Chief Financial Officer    
         
Goldman Sachs Trust   Goldman Sachs Trust    
         
/s/ James A. McNamara   /s/ George F. Travers    

 
   
James A. McNamara   George F. Travers    
         
Date: May 7, 2010   Date: May 7, 2010    

This certification is being furnished to the Securities and Exchange Commission pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Securities and Exchange Commission.

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