-----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, FowqnFX0SCgpspET+w4/GKrywFgC4AW2KjPbv5JW8JoNlPz/IMXeMGMJOQ1h7TVr +pzNmGSOUy4KGHmsx23spQ== 0000950123-10-063196.txt : 20100701 0000950123-10-063196.hdr.sgml : 20100701 20100701165839 ACCESSION NUMBER: 0000950123-10-063196 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 18 CONFORMED PERIOD OF REPORT: 20100430 FILED AS OF DATE: 20100701 DATE AS OF CHANGE: 20100701 EFFECTIVENESS DATE: 20100701 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: 10931561 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 S000009331 Goldman Sachs Concentrated International Equity Fund C000025546 Goldman Sachs Concentrated International Equity Fund C000025547 Institutional GSIEX C000025548 Service GSISX C000025549 Class A GSIFX C000025550 Class B GSEBX C000025551 Class C GSICX 0000822977 S000009334 Goldman Sachs International Small Cap Fund C000025564 Goldman Sachs International Small Cap Fund C000025565 Institutional GISIX C000025566 Service GISSX C000025567 Class A GISAX C000025568 Class B GISBX C000025569 Class C GISCX 0000822977 S000014928 Goldman Sachs Strategic International Equity Fund C000040523 Class A GSAKX C000040524 Class B GSBKX C000040525 Class C GSCKX C000040526 Institutional GSIKX C000040527 Service GSSKX C000058986 Class R C000058987 Class IR N-CSRS 1 y84745nvcsrs.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.   Geoffrey R. T. Kenyon, Esq.
200 West Street   Dechert LLP
New York, NY 10282   200 Clarendon Street
    27th Floor
    Boston, MA 02116-5021

(Name and address of agents for service)

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


Date of fiscal year end: October 31


Date of reporting period: April 30, 2010


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

 


 

Goldman Sachs Funds
 
 
 
       
       
Semi-Annual Report
    April 30, 2010
        
       
       
      Fundamental International Equity Funds
      Concentrated International Equity
      International Small Cap
      Strategic International Equity
       
 
(GOLDMAN SACHS ASSET MANAGEMENT LOGO)
 


 

Goldman Sachs Fundamental International
Equity Funds
 
 
n  CONCENTRATED INTERNATIONAL EQUITY  
 
n  INTERNATIONAL SMALL CAP  
 
n  STRATEGIC INTERNATIONAL EQUITY  
 
 
TABLE OF CONTENTS
 
     
Principal Investment Strategies and Risks
  1
Investment Process
  2
Market Review
  3
Portfolio Management Discussion and
Performance Summaries
  6
Schedules of Investments
  24
Financial Statements
  34
Notes to Financial Statements
  38
Financial Highlights
  54
Other Information
  60
 
 
 
 
             
NOT FDIC-INSURED
    May Lose Value     No Bank Guarantee
             


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

Principal Investment Strategies and Risks
 
This is not a complete list of risks that may affect the Funds. For additional information concerning the risks applicable to the Funds, please see the Funds’ Prospectus.
 
The Concentrated International Equity Fund invests primarily in a diversified portfolio of equity investments in companies that are organized outside the United States or whose securities are principally traded outside the United States. The Fund is subject to market risk, which means that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions. Foreign and emerging market securities may be more volatile than investments in U.S. securities and will be subject to the risks of currency fluctuations and sudden economic or political developments. Because the Fund may concentrate its investments in specific countries or regions, the Fund is subject to greater risk of loss as a result of adverse securities markets, exchange rates and social, political, regulatory or economic events which may occur in those countries or regions. The Fund may engage in foreign currency transactions. The Fund may also invest in fixed income securities, which are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. Securities of issuers held by the Fund may lack sufficient market liquidity to enable the Fund to sell the securities at an advantageous time or without a substantial drop in price.
 
The International Small Cap Fund invests primarily in a diversified portfolio of equity investments in non-U.S. small-cap companies. The Fund is subject to market risk, which means that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions. Stocks of smaller companies are often more volatile and less liquid and present greater risks than stocks of larger companies. Foreign and emerging market securities may be more volatile than investments in U.S. securities and will be subject to the risks of currency fluctuations and sudden economic or political developments. The Fund may engage in foreign currency transactions. The Fund may participate in the initial public offering (“IPO”) market. The market value of IPO shares may fluctuate considerably due to factors such as the absence of a prior public market, unseasoned trading, and the small number of shares available for trading and limited information about the issuer. The Fund may also invest in fixed income securities, which are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. Securities of issuers held by the Fund may lack sufficient market liquidity to enable the Fund to sell the securities at an advantageous time or without a substantial drop in price.
 
The Strategic International Equity Fund is expected to invest in a diversified portfolio of equity investments in companies that are organized outside the United States or whose securities are principally traded outside the United States. The Fund’s equity investments are subject to market risk so that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions. Foreign and emerging market securities may be more volatile than investments in U.S. securities and will be subject to the risks of currency fluctuations and sudden economic or political developments. At times, the Fund may be unable to sell certain of its portfolio securities without a substantial drop in price, if at all. The Fund may engage in foreign currency transactions. The Fund may also invest in fixed income securities, which are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. Securities of issuers held by the Fund may lack sufficient market liquidity to enable the Fund to sell the securities at an advantageous time or without a substantial drop in price.
 
 
 
1 


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

What Differentiates Goldman Sachs’
Fundamental International Equity Investment
Process?
 
Goldman Sachs’ Fundamental International Equity investment process is based on the belief that strong, consistent results are best achieved through expert stock selection performed by research teams working together on a global scale. Our deep, diverse and experienced team of research analysts and portfolio managers combines local insights with global, industry-specific expertise to identify their best investment ideas.
 
     
 

(CHART)
  (GRAPHIC)

n Fundamental research teams based in the United States, United Kingdom, Japan, China, Korea, Singapore, Brazil, and India and focusing on long-term business and management quality

n Analysts collaborate regularly to leverage regional and industry-specific research and insights

n Global perspective is informed by local market expertise

n A common valuation framework, focusing on long-term earnings power, ensures consistency when valuing and comparing a company to its peers globally

(GRAPHIC)

n Team of experienced portfolio managers is regionally aligned and has sector expertise

n Team leverages the research of the approximately 44 regional investment professionals

n Decision-making process is informed by active participation in the global research process

(GRAPHIC)

n Security selections are aligned with level of investment conviction

n Risk monitoring considers whether investment and other risks to the Funds are intended and justified

n Dedicated portfolio construction team assists in ongoing monitoring and adjustment of the Funds

(GRAPHIC)

International equity portfolios that strive to offer:
            ­ ­
              n Access to markets across the world
              n Disciplined approach to stock selection
              n Optimal risk/return profiles
 
 
 
 2


 

MARKET REVIEW
 
 

Goldman Sachs Fundamental International
Equity Funds
 
Market Review
 
Overall, international equities generated positive but modest returns during the six-month period ended April 30, 2010 (the “Reporting Period”). The Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) (Net) Index (unhedged) (The “MSCI EAFE Index”) posted a return of 2.48%.* From a sector perspective, investors generally embraced economically-sensitive sectors, such as materials, industrials and information technology, which were the best performers during the Reporting Period. In contrast, more traditionally defensive sectors, typically closely tied to the economic cycle, such as telecommunication services, utilities and health care, were weaker. Financials, which comprises approximately 25% of the MSCI EAFE Index, performed poorly during the Reporting Period, generally reflecting concerns over potential raising of capital and the overall health of banks. Consumer staples outpaced the MSCI EAFE Index during the Reporting Period, a particularly strong showing for a normally defensive sector group, due to a high level of merger and acquisition activity.
 
As the Reporting Period began in November 2009, international equities capped a 2009 of extremes on a note of moderation, with modest gains amidst a backdrop of mixed corporate earnings reports and economic data that left investors with no clear directional signals. In Europe, as in the U.S., many companies beat earnings expectations but did so primarily on cost cutting rather than on sales, thereby muting investor enthusiasm. Encouraging news that the U.S. officially came out of recession during the fourth quarter of 2009 was offset by stubbornly high unemployment, which surpassed 10%, and continued mixed reports on housing. Europe also emerged out of recession in the last months of 2009, but sovereign ratings for Eurozone countries became the bigger focus. The euro was weakened as Greece was downgraded by several ratings agencies, and Spain’s and Portugal’s outlooks were revised from stable to negative. Weakness in Japanese equities was largely driven by concerns regarding significant raising of capital at many corporations and continued worries about the strong yen. In contrast to the muted returns of the major developed markets, strong commodity prices drove returns in Australia as well as the emerging market countries during the last months of 2009.
 
International equities began 2010 with further gains, overcoming a weak start in January with modest increases in February and strong performance in March. The first calendar quarter of 2010 marked the fourth consecutive quarter of gains for international equities, although underlying economic data and sentiment offered less directional conviction.
 
Greece’s debt troubles dominated equity markets the last four months. European equities were among the weakest performers, as sovereign default worries, the potential cost of a Greek bailout, a sinking euro, U.K. electoral uncertainty, and disruption from a six-day ban on air travel caused by an Icelandic volcanic ash cloud piled onto already sluggish Gross Domestic Product (“GDP”) growth estimates. The Greek government agreed to accept a proposed 45 billion euro bailout package from European Union countries and the International Monetary Fund (“IMF”). However, domestic equity market weakness and soaring Greek bond yields persisted. Such financial market weakness reflected three major
 
 
* All index returns are expressed in U.S. dollar terms.
 
 
 
 
3 


 

MARKET REVIEW
 
 

 
concerns. First, Standard & Poor’s downgraded Greece’s debt to below investment grade. Second, many believed that Greece will ultimately need as much as 120 to 130 billion euros over the next three years. And third, details and conditions of the Greek bailout were still not finalized. Debt-heavy Portugal and Spain were also downgraded by the independent rating agencies, which weighed on their domestic equity markets, even though their debt retained investment grade status.
 
Having been a notable laggard in the last months of 2009, Japanese equities generated outsized returns in 2010 through April 30 fueled by the benefits of a weaker yen and evidence of a strong pick-up in regional demand, particularly from China, which trumped lingering concerns over Japanese economic and corporate health. Looking elsewhere in the region, actual or looming interest rate increases weighed on the equity markets of high growth economies in both developed and emerging Asia year-to-date through April 30, 2010, as their central banks sought to prevent economic overheating — economic growth growing too fast — and keep inflation in check.
 
During the Reporting Period overall, currency had a more significant impact on equity market returns for U.S. investors than usual. The international equity markets actually performed well as measured in local currencies. However, because of the weakness of the euro, yen and other major developed market currencies during the Reporting Period, international equity market returns as measured in U.S. dollars were muted. Remember, as the value of the U.S. dollar increases relative to other currencies, the dollar value of foreign investments typically decreases, and vice versa.
 
Small-Cap International Equities
 
The MSCI Small Cap EAFE Index gained 6.28% during the reporting period ended April 30, 2010. Small-capitalization international equities overall were significantly stronger than their larger-cap counterparts early in the Reporting Period, as there tends to be a bit more cyclicality to small-cap stocks, and cyclical segments of the equity markets performed best in the latter part of 2009. Such broad equity market trends continued into 2010, but in a less pronounced manner, and thus small-cap international equities continued to outperform larger-cap stocks during the first four months of 2010 but to a more modest degree. Overall, small-cap international equities were driven by the same factors as large-cap international equities during the Reporting Period.
 
Looking Ahead
 
We maintain a positive view ahead for the remainder of 2010 with regard to economic growth and equity market performance. By the end of the Reporting Period, most developed market economies had already emerged from recession and were seeing modest GDP growth and historically average equity market returns. Economic indicators remained mixed, however, and thus did not provide clear trends, particularly as volatility and correlations continued to retreat from extreme levels.
 
We believe corporate earnings should accelerate in the months ahead due to economic improvement and unprecedented company-level operating leverage driven by aggressive cost cutting. Low borrowing costs should be a further tailwind to earnings. As investors
 
 
 
 4


 

MARKET REVIEW
 
 

 
refocus on fundamentals, we believe that the remainder of 2010 will be a fertile environment to generate added value for investors through research and stock-picking skills.
 
We continue to anticipate increased stock-level differentiation going forward, distinguishing quality companies with robust business models from those likely to remain challenged. As the Great Recession concludes and massive global economic stimulus unwinds over the balance of 2010, we believe companies with the potential to sustain themselves and grow through this upcoming transition period may be the most attractive.
 
Our bottom-up approach to investing challenges us to focus on finding companies with strong or improving fundamentals that we believe will be winners over the long term. As always, we maintain our focus on high-quality equity investments trading at compelling valuations and intend to stay true to our long-term discipline as we seek to navigate potentially volatile markets ahead.
 
 
 
5 


 

PORTFOLIO RESULTS
 
 

Concentrated International Equity Fund
 
Portfolio Management Discussion and Analysis
Below, the Goldman Sachs Global Equity Team discusses the Goldman Sachs Concentrated International Equity Fund’s performance and positioning for the Reporting Period.
 
How did the Goldman Sachs Concentrated International Equity Fund (the “Fund”) perform during the Reporting Period?
 
A  During the Reporting Period, the Fund’s Class A, B, C, Institutional and Service Shares generated cumulative total returns, without sales charges, of 3.45%, 3.14%, 3.16%, 3.75% and 3.47%, respectively. These returns compare to the 2.48% cumulative total return of the Fund’s benchmark, the MSCI EAFE (Net) Index (unhedged) (the “MSCI Index”), during the same period. Effective March 1, 2010, the Fund changed its benchmark from the MSCI EAFE (Gross) Index (unhedged) to the MSCI EAFE (Net) Index (unhedged). During the Reporting Period, the cumulative total return of the MSCI EAFE (Gross) Index (unhedged) was 2.68%.
 
What key factors were responsible for the Fund’s performance during the Reporting Period?
 
A  The Fund’s outperformance of the MSCI Index during the Reporting Period can be primarily attributed to individual stock selection. From a sector perspective, effective stock selection was rather broad-based. Sector positioning overall also helped, but to a far more modest degree. From a country perspective, stock selection was particularly strong in Europe, especially Germany, and in Japan. This more than offset weaker relative performance in developed Asia ex-Japan, including Hong Kong.
 
While country weightings are the direct result of individual stock selection, country allocation overall helped the Fund’s relative results during the Reporting Period. A modestly underweighted allocation to Europe, and within that, a slightly overweighted exposure to the U.K., was beneficial to Fund results given the weakness of the euro during the Reporting Period and the comparatively less weak British sterling vs. the U.S. dollar. Having no exposure to Greece and Portugal and only a limited position in Spain, each of whose equity markets struggled along with its much-headlined economic troubles, also proved prudent.
 
What were some of the Fund’s best-performing individual stocks?
 
A  Swiss agricultural chemicals company Syngenta was the strongest positive contributor to the Fund’s performance relative to the MSCI Index during the Reporting Period. Its shares rose on the increase in soft commodity prices, published strong sales figures in 2009 and market share gains. Management also reiterated full-year profit guidance, which stood in contrast to that of many of its peers. Having an overweighted position in the strongly performing Syngenta for much of the Reporting Period helped as did a well-timed sale of the Fund’s position in the materials company.
 
Another top contributor to performance during the Reporting Period was Japanese video game manufacturer Nintendo. Nintendo’s shares rose as improving strength in consumer demand bolstered gaming stocks generally. The company’s shares also jumped on the announcement of strong sales of its Wii hardware and software during the 2009 holiday season.
 
German auto manufacturer Daimler was another particularly strong performer. Daimler, which was a new position for the Fund during the Reporting Period, benefited from improved demand in the automobile market broadly. Daimler also posted strong gains in the first quarter of 2010 and raised guidance for the remainder of the calendar year based in part on anticipation of increasing demand.
 
Which stocks detracted significantly from the Fund’s performance during the Reporting Period?
 
A  The biggest detractors from Fund performance relative to the MSCI Index during the Reporting Period were the Netherlands telecommunications services company Koninklijke KPN, French banking conglomerate Societe Generale and Swiss medical device company Nobel Biocare.
 
Koninklijke KPN was the worst performing holding in the Fund’s portfolio during the Reporting Period, as its share price fell on uncertainty surrounding the upcoming mobile telephone spectrum auctions in Germany and the Netherlands and in anticipation of the announcement of reductions to the mobile termination rates in the Netherlands.
 
 
 
 6


 

PORTFOLIO RESULTS
 
 

 
Weakness in telecommunication services broadly, a sector viewed as a particularly defensive one during a time when more economically-sensitive sectors rallied most, also weighed on the stock. We trimmed but did not eliminate the Fund’s position in Koninklijke KPN during the Reporting Period.
 
The Fund’s position in French banking conglomerate Societe Generale also detracted from performance. Societe Generale had disappointing results during the Reporting Period primarily because it had to write down some U.S. subprime mortgage exposure and because there were concerns it may have to raise capital. Also, the financials sector overall performed poorly during the Reporting Period, and European banks were a particularly weak industry within the sector given the overhang of Greece, as well as concerns about capital raising broadly. We sold the Fund’s position in Societe Generale by the end of the Reporting Period.
 
Exposure to Swiss health care company Nobel Biocare detracted from the Fund’s results. Health care companies overall lagged the performance of the MSCI Index, with uncertainty in U.S. health care reform legislation weighing on the sector for much of the Reporting Period. This was particularly the case for many medical device companies such as Nobel Biocare, which specializes in dental implants, given uncertainty as to how any new legislation would affect insurance reimbursements.
 
Which equity market sectors most significantly affected Fund performance during the Reporting Period?
 
A  The sectors that contributed most to the Fund’s performance relative to the MSCI Index were consumer discretionary, materials and information technology, all economically-sensitive segments of the equity market. The consumer discretionary and information technology sectors performed well, as economic data out of the U.S. and Europe improved, especially data regarding better consumer and business spending. Continued strength in commodities prices overall supported the materials sector. Stock selection in each of these three sectors was effective during the Reporting Period. Stock selection was particularly strong in consumer discretionary, led by a well-timed trade in German auto manufacturer Daimler and a position in the strongly-performing Japanese video game maker Nintendo. Fund weightings in these sectors were not a major factor during the Reporting Period.
 
The biggest detractors from the Fund’s relative results during the Reporting Period were industrials, financials and telecommunication services. An underweighted allocation to the strongly-performing industrials sector hurt. Stock selection within financials actually contributed positively to the Fund’s results, but having a modest overweight to one of the worst performing sectors during the Reporting Period detracted. Conversely, having an underweighted position in telecommunication services, the worst performing sector in the MSCI Index during the Reporting Period helped, but such positioning was more than offset by the detracting effect of a holding in the weakly performing Koninklijke KPN, the Netherlands telecommunication services company.
 
Which countries or regions most affected the Fund’s performance during the Reporting Period?
 
A  Typically, the Fund’s individual stock holdings will significantly influence the Fund’s performance within a particular country or region relative to the MSCI Index. This effect may be even more pronounced in a concentrated portfolio or in countries that represent only a modest proportion of the MSCI Index.
 
That said, the Fund’s overall positioning in Japan, Spain and Germany contributed most positively to its returns relative to the MSCI Index. The countries that detracted most from the Fund’s performance during the Reporting Period were the Netherlands, Hong Kong and France.
 
Did the Fund make any significant purchases or sales during the Reporting Period?
 
A  In addition to the purchase of Daimler, already mentioned, we re-initiated a position in Swiss pharmaceutical company Novartis, having sold out of the Fund’s position during the second quarter of 2009. We believe Novartis has scope to expand its profit margins. We further believe that fears about pending drug patent expirations might be overdone, as developments in the company’s drug pipeline could help
 
 
 
7 


 

PORTFOLIO RESULTS
 
 

 
to offset the loss of revenues. We also established a position in Japanese auto maker Honda based on increasing global demand for autos. In our view, Japanese auto makers could particularly benefit from strong demand in China.
 
In addition to those sales mentioned earlier, we eliminated the Fund’s holding in U.K. health care company Shire, Swiss medical device company Synthes and U.K. bank Barclays. We sold the Fund’s position in Shire as it was approaching the price target we had set for the stock. We sold the Fund’s position in Synthes over concerns regarding product pricing and delays. We exited Barclays following strong share price appreciation that hit our price target in early 2010 after the company reported strong 2009 results.
 
Were there any notable changes in the Fund’s weightings during the Reporting Period?
 
A  In this Fund, both sector weightings and country allocations are largely the result of our bottom-up stock selection process rather than any top-down macroeconomic views or industry bets. That said, during the Reporting Period, the Fund’s exposure to the health care and consumer discretionary sectors increased, and its allocations to consumer staples, financials and materials decreased.
 
Resulting from various stock selection decisions, the Fund’s exposure to Switzerland, Germany and Finland increased, and its allocations to the U.K. and Hong Kong decreased.
 
How was the Fund positioned relative to its benchmark index at the end of the Reporting Period?
 
A  As of April 30, 2010, the Fund had more exposure to Switzerland, the U.K. and Ireland and less exposure to France, Spain, Italy, Sweden and the Netherlands relative to the MSCI Index.
 
From a sector allocation perspective, the Fund had overweighted positions relative to the MSCI Index in the health care and consumer discretionary sectors at the end of April 2010. On the same date, the Fund had underweighted positions compared to the MSCI Index in materials, utilities, financials and consumer staples and rather neutral positions relative to the MSCI Index in energy, information technology, telecommunication services and industrials.
 
As always, we remained focused on individual stock selection, with sector and regional positioning being a secondary, closely-monitored effect.
 
 
 
 8


 

FUND BASICS
 
 

Concentrated International Equity Fund
as of April 30, 2010
 
[GRAPHIC]
PERFORMANCE REVIEW
 
                             
    Fund Total Return
    MSCI EAFE (Net) Index
    MSCI EAFE (Gross) Index
     
November 1, 2009–April 30, 2010   (based on NAV)1     (unhedged)2     (unhedged)2      
 
Class A
    3.45 %     2.48 %     2.68 %    
Class B
    3.14       2.48       2.68      
Class C
    3.16       2.48       2.68      
Institutional
    3.75       2.48       2.68      
Service
    3.47       2.48       2.68      
1 The net asset value (NAV) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance reflects the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges.
2 The MSCI EAFE (Net) Index (unhedged, with dividends reinvested) is a market capitalization-weighted composite of securities in 21 developed markets. The Index is unmanaged and the figures for the Index do not include any deduction for fees, expenses or taxes. It is not possible to invest directly in an index. Effective March 1, 2010, the Fund changed it’s benchmark from the MSCI EAFE (Gross) Index (unhedged) to the MSCI EAFE (Net) Index (unhedged). In the Investment Adviser’s opinion, the MSCI EAFE (Net) Index (unhedged) is a more appropriate benchmark against which to measure the performance of the Fund, because it reflects dividends paid and deducts taxes.
 
STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS3
 
                                         
For the period ended 3/31/10   One Year     Five Years     Ten Years     Since Inception     Inception Date    
 
Class A
    40.95 %     -0.11 %     -2.42 %     4.34 %   12/1/92    
Class B
    43.13       -0.14       -2.37       2.48     5/1/96    
Class C
    47.12       0.30       -2.48       0.87     8/15/97    
Institutional
    49.78       1.43       -1.37       3.88     2/7/96    
Service
    49.06       0.91       -1.86       3.25     3/6/96    
3 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 and the assumed contingent deferred sales charge for Class B Shares (5% maximum declining to 0% after six years) and the assumed contingent deferred sales charge for Class C Shares (1% if redeemed within 12 months of purchase). Class B Shares convert automatically to Class A Shares on or about the fifteenth day of the last month of the calendar quarter that is eight years after purchase. Returns for Class B Shares for the period after conversion reflect the performance of Class A Shares. Because Institutional and Service Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns. Effective November 2, 2009, the Fund’s Class B Shares are no longer available for purchase by new or existing shareholders (although current Class B shareholders may continue to reinvest income and capital gains distributions into Class B Shares, and Class B shareholders may continue to exchange their shares for Class B Shares of certain other Goldman Sachs Funds). The Fund will charge a 2% redemption fee on the redemption of shares (including by exchange) held for 30 calendar days or less. The performance figures do not reflect the deduction of the redemption fee. If reflected, the redemption fee would reduce the performance quoted.
These returns represent past performance. Past performance does not guarantee future results. The Fund’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 Web site 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 Fund distributions or the redemption of Fund shares.
 
 
 
9 


 

FUND BASICS
 
 


 
EXPENSE RATIOS4
 
                     
    Net Expense Ratio (Current)     Gross Expense Ratio (Before Waivers)      
 
Class A
    1.54 %     1.65 %    
Class B
    2.29       2.40      
Class C
    2.29       2.40      
Institutional
    1.14       1.25      
Service
    1.64       1.75      
4 The expense ratios of the Fund, 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 Prospectus for the Fund and may differ from the expense ratios disclosed in the Financial Highlights in this report. Applicable waivers and expense limitations may be modified or terminated in the future, consistent with the terms of any arrangements in place. If this occurs, the expense ratios may change without shareholder approval.
 
TOP TEN HOLDINGS AS OF 4/30/105
 
                     
    % of Net
             
Holding   Assets     Line of Business   Country    
 
HSBC Holdings PLC
    3.8 %   Banks   United Kingdom    
Roche Holding AG
    3.4     Pharmaceuticals, Biotechnology
& Life Sciences
  Switzerland    
Vodafone Group PLC
    3.3     Telecommunication Services   United Kingdom    
Novartis AG (Registered)
    2.7     Pharmaceuticals, Biotechnology
& Life Sciences
  Switzerland    
Reed Elsevier PLC
    2.4     Media   United Kingdom    
Panasonic Corp. 
    2.3     Consumer Durables & Apparel   Japan    
Mitsubishi Corp. 
    2.3     Capital Goods   Japan    
Rio Tinto PLC
    2.1     Materials   United Kingdom    
Nintendo Co. Ltd. 
    2.1     Software & Services   Japan    
Bayer AG
    2.1     Pharmaceuticals, Biotechnology
& Life Sciences
  Germany    
5 The top 10 holdings may not be representative of the Fund’s future investments.
 
 
 
 10


 

FUND BASICS
 
 


 
FUND VS. BENCHMARK SECTOR ALLOCATIONS6
 
 
As of April 30, 2010
 
(SECTOR ALLOCATION BAR CHART)
 
6 The Fund is actively managed and, as such, its composition may differ over time. The above graph categorizes investments using Global Industry Classification Standard (“GICS”), however, the sector classifications used by the portfolio management team may differ from GICS. Underlying industry sector allocations of exchange traded funds (“ETFs”) held by the Fund are not reflected in the graph above. Consequently, the Fund’s overall industry sector allocations may differ from percentages contained in the graph above.
The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value (excluding investments in the securities lending reinvestment vehicle, if any). Investment in the securities lending reinvestment vehicle represented 5.8% of the Fund’s net assets at April 30, 2010.
 
 
 
11 


 

PORTFOLIO RESULTS
 
 

International Small Cap Fund
 
Portfolio Management Discussion and Analysis
Below, the Goldman Sachs Global Equity Team discusses the Goldman Sachs International Small Cap Fund’s performance and positioning for the Reporting Period.
 
How did the Goldman Sachs International Small Cap Fund (the “Fund”) perform during the Reporting Period?
 
A  During the Reporting Period, the Fund’s Class A, B, C, Institutional and Service Shares generated cumulative total returns, without sales charges, of 12.15%, 11.79%, 11.76%, 12.35% and 11.98%, respectively. These returns compare to the 8.76% cumulative total return of the Fund’s benchmark, the S&P Developed ex-U.S. Small Cap Index (Net) (the “S&P Index”), during the same period. Effective March 1, 2010, the Fund changed its benchmark from the S&P Developed Ex-U.S. Small Cap (Gross) Index to the S&P Developed Ex-U.S. Small Cap (Net) Index. During the Reporting Period, the cumulative total return of the S&P Developed Ex-U.S. Small Cap (Gross) Index was 8.95%.
 
What key factors were responsible for the Fund’s performance during the Reporting Period?
 
A  The Fund’s outperformance of the S&P Index during the Reporting Period can be primarily attributed to individual stock selection. From a sector perspective, effective stock selection was rather broad-based. From a country perspective, stock selection was particularly strong in Japan, Germany and Australia. This more than offset weaker stock selection in South Korea. While the direct result of individual stock selection, country allocation and sector positioning overall also helped, but to far more modest degrees.
 
What were some of the Fund’s best-performing individual stocks?
 
A  Germany’s semiconductor company Dialog Semiconductor was the leading positive contributor to the Fund’s performance during the Reporting Period. The company, which is the producer of power management chips and the developer of a new lighting technology known as PM-OLED, secured several contracts by leading handset manufacturers during the second half of 2009. This significantly shifted the company’s growth trajectory upward. As Dialog Semiconductor is not a component of the S&P Index, its strong returns particularly boosted the Fund’s relative results. We trimmed the Fund’s position in Dialog Semiconductor during the Reporting Period, taking profits.
 
Australian iron ore exploration and production company Mount Gibson Iron was the second biggest contributor to Fund performance at the stock level during the Reporting Period. Mount Gibson Iron performed well on the back of significant price increases for iron ore due to strong Chinese demand. Further, the historically annual price setting mechanism for iron ore was changed to quarterly price settings, leading to earnings upgrades for the company for calendar year 2010. Having an overweighted position in this strongly performing stock during a time when continued strength in commodities prices overall supported the materials sector proved effective.
 
U.K. enterprise software and services company Micro Focus was another significant contributor to Fund performance. Micro Focus performed well during the Reporting Period as it surprised with a more rapid than expected integration of two earlier acquisitions. This integration, in turn, led to significant top-line and cost-effective synergies for the company. In addition, the company introduced its new CEO during the Reporting Period.
 
Among the Fund’s Japanese holdings, automobile parts manufacturer Press Kogyo was the top contributor to relative results during the Reporting Period. Press Kogyo benefited from improved demand in the automobile market.
 
Which stocks detracted significantly from the Fund’s performance during the Reporting Period?
 
A  A position in Greece’s financials exchange company Hellenic Exchange detracted, as the stock was a poor performer during the Reporting Period. Hellenic Exchange was impacted greatly by the debt crisis impacting the nation.
 
Two U.K. companies also detracted significantly from the Fund’s results. We initiated a position in nursing home operator Southern Cross’s Healthcare during the Reporting Period, but its shares declined because of lower than expected fee inflation by the U.K. government, which provides 70% of the funding for Southern Cross’ nursing
 
 
 
 12


 

PORTFOLIO RESULTS
 
 

 
homes. A position in Intec Telecom Systems, a leading provider of complex billing software solutions for telecommunications operators, also hurt, as the company had to issue a warning regarding its profits on the back of lower new contract sales, partly caused by new low-cost competition from India entering the market. We both bought and sold Intec Telecom Systems during the Reporting Period.
 
Which equity market sectors most significantly affected Fund performance during the Reporting Period?
 
A  The sectors that contributed most to the Fund’s performance relative to the S&P Index were industrials and consumer discretionary, the two largest sectors in the S&P Index and in the Fund, and both are economically-sensitive segments of the equity market. Stock selection was also effective in energy, materials and consumer staples.
 
The biggest detractor from the Fund’s results during the Reporting Period was the health care sector, where stock selection hurt both absolute and relative performance. Stock selection within information technology also detracted, though only modestly.
 
Which countries or regions most affected the Fund’s performance during the Reporting Period?
 
A  Typically, the Fund’s individual stock holdings will significantly influence the Fund’s performance within a particular country or region relative to the S&P Index. This effect may be even more pronounced in countries that represent only a modest proportion of the S&P Index.
 
That said, strong stock selection in Japan, Germany and Australia contributed most to the Fund’s performance during the Reporting Period. The countries that detracted most from the Fund’s performance during the Reporting Period were Greece, Belgium and Luxembourg. It should be noted that each of these detracting markets had a combined average weighting in the Fund’s portfolio of approximately 2.5% during the Reporting Period.
 
Did the Fund make any significant purchases or sales during the Reporting Period?
 
A  In addition to those purchases already mentioned, we established Fund positions in two South Korean companies as we sought to bring the Fund’s exposure to South Korea closer to that of the S&P Index. We initiated and subsequently added to positions in Mode Tour Network, a travel services provider, and Neowiz Games, an online games application services provider. We also initiated a position in Mexican steel producer Ternium. Ternium is largely vertically integrated, which makes it relatively immune to the raw material price increases that most steel producers face. We also liked the fact that Ternium exports most of its output to the U.S. and is therefore geared into a U.S. economic recovery.
 
Among the Fund’s most significant sales during the Reporting Period, we eliminated the Fund’s holdings in U.K. engineering software provider Aveva Group, French management consulting and computer services firm Atos Origin and Finnish tire company Nokian Renkaat. Aveva Group was sold, as visibility on a recovery in the marine segment of its business, which makes up approximately 30% of the company’s profits, remains elusive. While we did not necessarily have a negative view on the company, we believe it may lag the market in the near term as other end-markets are recovering sooner. Atos Origin and Nokian Renkaat were sold for valuation reasons. With the sale of Nokian Renkaat, we took the opportunity to switch into a competitor tire maker we believed had a more attractive valuation.
 
Were there any notable changes in the Fund’s weightings during the Reporting Period?
 
A  Most sector bets are usually established within a narrow range from the S&P Index, as our team prefers to make decisions at the individual stock level, where we believe we can generate more added value. That said, during the Reporting Period, the Fund’s exposure to the consumer discretionary, health care and industrial sectors increased, and its allocations to information technology, materials and financials decreased.
 
 
 
13 


 

PORTFOLIO RESULTS
 
 

 
Resulting from various stock selection decisions, the Fund’s exposure to the U.K., Italy and Austria increased, and its allocation to China and France decreased.
 
How was the Fund positioned relative to its benchmark index at the end of the Reporting Period?
 
A  As of April 30, 2010, the Fund had more exposure to the U.K., Italy, Austria, Germany and China and less exposure to France, Switzerland and Spain relative to the S&P Index.
 
From a sector allocation perspective, the Fund had overweighted positions relative to the S&P Index in the consumer discretionary, consumer staples, information technology and health care sectors at the end of April 2010. On the same date, the Fund had underweighted positions compared to the S&P Index in industrials, financials and utilities and rather neutral positions relative to the S&P Index in energy, telecommunication services and materials.
 
As always, we remained focused on individual stock selection, with sector and regional positioning being a secondary, closely-monitored effect.
 
 
 
 14


 

FUND BASICS
 
 

International Small Cap Fund
as of April 30, 2010
 
[GRAPHIC]
PERFORMANCE REVIEW
 
                             
    Fund Total Return
    S&P Developed ex-U.S.
    S&P Developed ex-U.S.
     
November 1, 2009–April 30, 2010   (based on NAV)1     Small Cap Index (Net)2     Small Cap Index (Gross)2      
 
Class A
    12.15 %     8.76 %     8.95 %    
Class B
    11.79       8.76       8.95      
Class C
    11.76       8.76       8.95      
Institutional
    12.35       8.76       8.95      
Service
    11.98       8.76       8.95      
1 The net asset value (NAV) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance reflects the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges.
2 Effective March 1, 2010, the Fund changed its benchmark from the S&P Developed Ex-U.S. Small Cap (Gross) Index to the S&P Developed Ex-U.S. Small Cap (Net) Index. In the Investment Adviser’s opinion, the S&P Developed Ex-U.S. Small Cap (Net) Index is a more appropriate benchmark against which to measure the performance of the Fund, because it reflects dividends paid and deducts taxes. The S&P Developed Ex-U.S. Small Cap (Net) Index is the small capitalization stock component of the S&P Developed Broad Market Index (BMI). The BMI is a float-weighted index that spans 25 countries (inclusive of the US) and includes the listed shares of all companies with an available market capitalization (float) of at least $100 million at the annual rebalance. At rebalance, companies are deleted from the index if their float falls below $75 million. The Small Cap ex-U.S. is defined as those stocks falling in the bottom 15% of the cumulative available capital in each country. The net returns series reflects net of withholding taxes applied to foreign investors, calculated daily based on tax rates that would be applied to a Luxembourg-based investor. An investor cannot invest directly in an index.
 
STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS3
 
                                         
For the period ended 3/31/10   One Year     Five Years     Ten Years     Since Inception     Inception Date    
 
Class A
    53.16 %     -1.01 %     -0.91 %     4.05 %   5/1/98    
Class B
    55.87       -1.03       -0.86       4.16     5/1/98    
Class C
    60.05       -0.62       -1.00       3.91     5/1/98    
Institutional
    62.88       0.53       0.16       5.09     5/1/98    
Service
    62.03       0.01       -0.34       4.56     5/1/98    
3 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, the assumed contingent deferred sales charge for Class B Shares (5% maximum declining to 0% after six years) and the assumed contingent deferred sales charge for Class C Shares (1% if redeemed within 12 months of purchase). Class B Shares convert automatically to Class A Shares on or about the fifteenth day of the last month of the calendar quarter that is eight years after purchase. Returns for Class B Shares for the period after conversion reflect the performance of Class A Shares. Because Institutional and Service Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns. Effective November 2, 2009, the Fund’s Class B Shares are no longer available for purchase by new or existing shareholders (although current Class B shareholders may continue to reinvest income and capital gains distributions into Class B Shares, and Class B shareholders may continue to exchange their shares for Class B Shares of certain other Goldman Sachs Funds). The Fund will charge a 2% redemption fee on the redemption of shares (including by exchange) held for 30 calendar days or less. The performance figures do not reflect the deduction of the redemption fee. If reflected, the redemption fee would reduce the performance quoted.
These returns represent past performance. Past performance does not guarantee future results. The Fund’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 Web site 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 Fund distributions or the redemption of Fund shares.
 
 
 
15 


 

FUND BASICS
 
 


 
EXPENSE RATIOS4
 
                     
    Net Expense Ratio (Current)     Gross Expense Ratio (Before Waivers)      
 
Class A
    1.60 %     2.08 %    
Class B
    2.35       2.83      
Class C
    2.35       2.83      
Institutional
    1.20       1.68      
Service
    1.70       2.18      
4 The expense ratios of the Fund, 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 Prospectus for the Fund and may differ from the expense ratios disclosed in the Financial Highlights in this report. Applicable waivers and expense limitations may be modified or terminated in the future, consistent with the terms of any arrangements in place. If this occurs, the expense ratios may change without shareholder approval.
 
TOP TEN HOLDINGS AS OF 4/30/105
 
                     
    % of Net
             
Holding   Assets     Line of Business   Country    
 
Travis Perkins PLC
    1.4 %   Capital Goods   United Kingdom    
Virgin Media, Inc. 
    1.3     Media   United Kingdom    
Micro Focus International PLC
    1.3     Software & Services   United Kingdom    
William Hill PLC
    1.2     Consumer Services   United Kingdom    
Geberit AG (Registered)
    1.2     Capital Goods   Switzerland    
HomeServe PLC
    1.2     Commercial &
Professional Services
  United Kingdom    
                     
Halfords Group PLC
    1.2     Retailing   United Kingdom    
Lindt & Spruengli AG
    1.1     Food, Beverage &
Tobacco
  Switzerland    
MTU Aero Engines Holding AG
    1.1     Capital Goods   Germany    
Ingenico SA
    1.1     Technology Hardware
& Equipment
  France    
5 The top 10 holdings may not be representative of the Fund’s future investments.
 
 
 
 16


 

FUND BASICS
 
 


 
FUND VS. BENCHMARK SECTOR ALLOCATIONS6
 
 
As of April 30, 2010
 
(SECTOR ALLOCATION BAR CHART)
 
6 The Fund is actively managed and, as such, its composition may differ over time. The above graph categorizes investments using Global Industry Classification Standard (“GICS”), however, the sector classifications used by the portfolio management team may differ from GICS. Consequently, the Fund’s overall industry sector allocations may differ from the percentages contained in the graph above.
The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value (excluding investments in the securities lending reinvestment vehicle, if any). Investment in the securities lending reinvestment vehicle represented 6.4% of the Fund’s net assets at April 30, 2010.
 
 
 
17 


 

PORTFOLIO RESULTS
 
 

Strategic International Equity Fund
 
Portfolio Management Discussion and Analysis
Below, the Goldman Sachs Global Equity Team discusses the Goldman Sachs Strategic International Equity Fund’s performance and positioning for the Reporting Period.
 
How did the Goldman Sachs Strategic International Equity Fund (the “Fund”) perform during the Reporting Period?
 
A  During the Reporting Period, the Fund’s Class A, B, C, Institutional, IR and R Shares generated cumulative total returns, without sales charges, of 4.48%, 4.11%, 4.14% 4.68%, 4.66% and 4.36%, respectively. These returns compare to the 2.48% cumulative total return of the Fund’s benchmark, the MSCI EAFE (Net) Index (unhedged) (the “MSCI Index”), during the same period. Effective March 1, 2010, the Fund changed its benchmark from the MSCI EAFE (Gross) Index (unhedged) to the MSCI EAFE (Net) Index (unhedged). During the Reporting Period, the cumulative total return of the MSCI EAFE (Gross) Index (unhedged) was 2.68%.
 
What key factors were responsible for the Fund’s performance during the Reporting Period?
 
A  The Fund’s outperformance of the MSCI Index index during the Reporting Period can be primarily attributed to individual stock selection. From a sector perspective, effective stock selection was rather broad-based. Sector positioning overall also helped, but to a far more modest degree.
 
From a country perspective, stock selection was particularly strong in Japan and France. This more than offset weaker stock selection in the Netherlands and in Hong Kong.
 
While country weightings are the direct result of individual stock selection, country allocation overall also helped during the Reporting Period. A substantially underweighted allocation to Spain was particularly beneficial, given the weakness of its equity market due to contagion fears from Greece. Similarly, an overweighted position in Italy hurt performance, as the country’s equity market returns suffered in conjunction with the Greek crisis.
 
What were some of the Fund’s best-performing individual stocks?
 
A  The top contributor to performance during the Reporting Period was J Front Retailing, a Japanese department store and supermarket retailer. J Front Retailing’s monthly sales, while still down versus a year ago, were significantly better during the latter part of the Reporting Period than in previous months’ year-over-year comparisons, pointing, many investors believed, to a gradual recovery. We both bought and sold J Front Retailing during the Reporting Period.
 
Safran and CGG Veritas were also top performers for the Fund during the Reporting Period. Safran is a French aerospace and defense electronics equipment manufacturer, whose stock performed strongly following news of better than expected 2009 profits and good forecasts for 2010. Some investors also believed the company might benefit from a potential increase in jet engine repairs that might be needed following encounters with volcanic ash from the eruption in Iceland. CGG Veritas is a French oilfield services and equipment company, which has a technology that enables it to scan areas thought to have oil and provide a more accurate picture to energy companies of where to drill. The company’s shares benefited during the Reporting Period from increased sales of its seismic library in the fourth quarter of 2009 as well as from seismic vessel day rates holding up better than consensus expectations. We trimmed the Fund’s position in CGG Veritas by the end of the Reporting Period.
 
Which stocks detracted significantly from the Fund’s performance during the Reporting Period?
 
A  The stocks that detracted most from the Fund’s performance during the Reporting Period were French banking conglomerate Societe Generale, the Netherlands telecommunication services company Koninklijke KPN, and Swiss diversified banking institution UBS.
 
Societe Generale had disappointing results during the Reporting Period primarily because it had to write down some U.S. subprime mortgage exposure and because there were concerns it may have to raise capital. Also, the financials sector overall performed poorly during the Reporting Period, and European banks were a particularly weak industry within the sector given the overhang of Greece as well as concerns about raising capital broadly.
 
 
 
 18


 

PORTFOLIO RESULTS
 
 

 
We sold the Fund’s position in Societe Generale by the end of the Reporting Period.
 
Koninklijke KPN was one of the worst performing holdings in the Fund’s portfolio during the Reporting Period, as its share price fell on uncertainty surrounding the upcoming mobile telephone spectrum auctions in Germany and the Netherlands and in anticipation of the announcement of reductions to the mobile termination rates in the Netherlands. Weakness in telecommunication services broadly, a sector viewed as a particularly defensive one during a time when more economically-sensitive sectors rallied most, also weighed on the stock.
 
As wealth management is a major portion of UBS’ business, UBS faced a major headwind of potentially losing clients due to changes in Swiss secrecy laws during the Reporting Period.
 
Which equity market sectors most significantly affected Fund performance during the Reporting Period?
 
A  The sectors that contributed most to the Fund’s performance relative to the MSCI Index were consumer discretionary and industrials, both economically-sensitive segments of the equity market. Both sectors performed well, as economic data out of the U.S. and Europe improved, especially data regarding better consumer and business spending. Stock selection in each of these sectors was effective during the Reporting Period.
 
There were no sectors that detracted from the Fund’s relative results during the Reporting Period. However, on a relative basis, the information technology, materials and financials sectors contributed least. Detracting from the Fund’s absolute returns were financials, telecommunication services and utilities. These sectors were generally weaker due to their defensive nature in a market that was favoring risk and economically-sensitive sectors. Financials were also impacted during the Reporting Period by ongoing concerns in the global economy. European financials were particularly hard hit given the troubles of Greece, Spain and Portugal.
 
Which countries or regions most affected the Fund’s performance during the Reporting Period?
 
A  Typically, the Fund’s individual stock holdings will significantly influence the Fund’s performance within a particular country or region relative to the MSCI Index. This effect may be even more pronounced in countries that represent only a modest proportion of the MSCI Index.
 
That said, based on effective individual stock selection, Japan and France, as mentioned, contributed most positively to the Fund’s returns relative to the MSCI Index. All three of the Fund’s top performers during the Reporting Period came from these two markets. The countries that detracted most from the Fund’s performance during the Reporting Period were the Netherlands, Italy and Hong Kong. Stock selection, primarily a position in Koninklijke KPN, as mentioned earlier, was the major driver of the Netherlands’ underperformance. An overweighted position in Italy hurt performance, as the country’s returns suffered in conjunction with the Greek crisis. Stock selection in Hong Kong, a small portion of the MSCI Index, was poor, resulting from the Fund’s holding in diversified real estate developer and operator Sun Hung Kai Properties. Sun Hung Kai Properties performed poorly as a new round of tightening measures and restrictive laws from the Chinese government designed to cool its housing market changed the environment for the region’s real estate developers.
 
Did the Fund make any significant purchases or sales during the Reporting Period?
 
A  Among the Fund’s most significant purchases during the Reporting Period, the Fund established positions in Italian bank Unicredito, German auto maker Daimler and U.K. metals producer Anglo American. We liked Unicredito’s long-term growth positioning and believe the current management team showed good leadership through the 2008-2009 financial crisis. We initiated a Fund position in Daimler in response to increasingly positive indications of a pick-up in German manufacturing and signs of increasing demand. Anglo American lagged its peers in the 2009 recovery due to exposure to later cycle materials, such as platinum and diamonds. Based on our analysis of the company and the industry broadly, we believe that going
 
 
 
19 


 

PORTFOLIO RESULTS
 
 

 
forward the company has potential to deliver the fastest production growth over the next five years and potentially the fastest earnings growth compared to its peers.
 
In addition to those sales already mentioned, we sold out of the Fund’s position in Swiss medical device company Synthes over concerns regarding product pricing and delays. We exited the Fund’s position in U.K. tobacco company Imperial Tobacco Group, as the stock had performed well and neared the price target we had established for the stock. We also eliminated the Fund’s position in Syngenta, the Swiss-based agrichemicals company focused on crop protection and seeds production, taking profits, as the stock had been a strong performer benefiting from the rise in soft commodity prices. Syngenta’s stock had neared our price target when we sold it.
 
Were there any notable changes in the Fund’s weightings during the Reporting Period?
 
A  Most sector bets are usually established within a narrow range from the MSCI Index, as our team prefers to make decisions at the individual stock level, where we believe we can generate more added value. That said, during the Reporting Period, the Fund’s exposure to the health care sector increased most significantly. To a more modest degree, the Fund’s positions in consumer discretionary and industrials also increased. The Fund’s allocations to information technology, materials, consumer staples and utilities decreased during the Reporting Period.
 
Resulting from various stock selection decisions, the Fund’s exposure to the U.K., Switzerland, Italy, Finland, Spain and the Netherlands decreased. There were no notable increases in country weightings during the Reporting Period.
 
How was the Fund positioned relative to its benchmark index at the end of the Reporting Period?
 
A  As of April 30, 2010, the Fund had more exposure to the U.K., Switzerland and Italy and less exposure to France, Germany, the Netherlands, Sweden and Spain relative to the MSCI Index.
 
From a sector allocation perspective, the Fund had overweighted positions relative to the MSCI Index in the health care, energy and financials sectors at the end of April 2010. On the same date, the Fund had underweighted positions compared to the MSCI Index in utilities, consumer staples, materials and industrials and rather neutral positions relative to the MSCI Index in consumer discretionary, telecommunication services and information technology.
 
As always, we remained focused on individual stock selection, with sector and regional positioning being a secondary, closely-monitored effect.
 
 
 
 20


 

FUND BASICS
 
 

Strategic International Equity Fund
as of April 30, 2010
 
[GRAPHIC]
PERFORMANCE REVIEW
 
                             
    Fund Total Return
    MSCI EAFE (Net)
    MSCI EAFE (Gross)
     
November 1, 2009–April 30, 2010   (based on NAV)1     Index (unhedged)2     Index (unhedged)2      
 
Class A
    4.48 %     2.48 %     2.68 %    
Class B
    4.11       2.48       2.68      
Class C
    4.14       2.48       2.68      
Institutional
    4.68       2.48       2.68      
Class IR
    4.66       2.48       2.68      
Class R
    4.36       2.48       2.68      
1 The net asset value (NAV) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance reflects the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges.
2 The MSCI EAFE (Net) Index (unhedged with dividends reinvested) is a market capitalization-weighted composite of securities in 21 developed markets. The Index is unmanaged and the figures for the Index do not include any deduction for fees, expenses or taxes. It is not possible to invest directly in an index. Effective March 1, 2010, the Fund changed it’s benchmark from the MSCI EAFE (Gross) Index (unhedged) to the MSCI EAFE (Net) Index (unhedged). In the Investment Adviser’s opinion, the MSCI EAFE (Net) Index (unhedged) is a more appropriate benchmark against which to measure the performance of the Fund, because it reflects dividends paid and deducts taxes.
 
STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS3
 
                         
For the period ended 3/31/10   One Year     Since Inception     Inception Date    
 
Class A
    40.35 %     -12.17 %   6/25/07    
Class B
    42.43       -12.04     6/25/07    
Class C
    46.32       -11.04     6/25/07    
Institutional
    48.87       -10.02     6/25/07    
Class IR
    48.82       -14.70     11/30/07    
Class R
    48.07       -15.12     11/30/07    
3 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 and the assumed contingent deferred sales charge for Class B Shares (5% maximum declining to 0% after six years) and the assumed contingent deferred sales charge for Class C Shares (1% if redeemed within 12 months of purchase). Class B Shares convert automatically to Class A Shares on or about the fifteenth day of the last month of the calendar quarter that is eight years after purchase. Returns for Class B Shares for the period after conversion reflect the performance of Class A Shares. Because Institutional, Class IR and R Shares do not involve a sales charge, such a charge is not applied to their Standardized Average Annual Total Returns. Effective November 2, 2009, the Fund’s Class B Shares are no longer available for purchase by new or existing shareholders (although current Class B shareholders may continue to reinvest income and capital gains distributions into Class B Shares, and Class B shareholders may continue to exchange their shares for Class B Shares of certain other Goldman Sachs Funds). The Fund will charge a 2% redemption fee on the redemption of shares (including by exchange) held for 30 calendar days or less. The performance figures do not reflect the deduction of the redemption fee. If reflected, the redemption fee would reduce the performance quoted.
These returns represent past performance. Past performance does not guarantee future results. The Fund’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 Web site 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 Fund distributions or the redemption of Fund shares.
 
 
 
21 


 

FUND BASICS
 
 


 
EXPENSE RATIOS4
 
                     
    Net Expense Ratio (Current)     Gross Expense Ratio (Before Waivers)      
 
Class A
    1.45 %     1.98 %    
Class B
    2.20       2.73      
Class C
    2.20       2.73      
Institutional
    1.05       1.58      
Class IR
    1.20       1.73      
Class R
    1.70       2.23      
4 The expense ratios of the Fund, 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 Prospectus for the Fund and may differ from the expense ratios disclosed in the Financial Highlights in this report. Applicable waivers and expense limitations may be modified or terminated in the future, consistent with the terms of any arrangements in place. If this occurs, the expense ratios may change without shareholder approval.
 
TOP 10 HOLDINGS AS OF 04/30/105
 
                     
    % of Net
             
Holding   Assets     Line of Business   Country    
 
HSBC Holdings PLC
    2.7 %   Banks   United Kingdom    
Roche Holding AG
    2.5     Pharmaceuticals, Biotechnology
& Life Sciences
  Switzerland    
Vodafone Group PLC
    2.5     Telecommunication Services   United Kingdom    
Novartis AG (Registered)
    2.1     Pharmaceuticals, Biotechnology
& Life Sciences
  Switzerland    
Eni SpA
    1.8     Energy   Italy    
BP PLC
    1.6     Energy   United Kingdom    
Bayer AG
    1.5     Pharmaceuticals, Biotechnology
& Life Sciences
  Germany    
Banco Santander SA
    1.5     Banks   Spain    
UniCredit SpA
    1.4     Banks   Italy    
Reed Elsevier PLC
    1.4     Media   United Kingdom    
5 The top 10 holdings may not be representative of the Fund’s future investments.
 
 
 
 22


 

FUND BASICS
 
 


 
FUND VS. BENCHMARK SECTOR ALLOCATIONS6
 
 
As of April 30, 2010
 
(SECTOR ALLOCATION BAR CHART)
 
6 The Fund is actively managed and, as such, its composition may differ over time. The above graph categorizes investments using Global Industry Classification Standard (“GICS”), however, the sector classifications used by the portfolio management team may differ from GICS. Underlying industry sector allocations of exchange traded funds (“ETFs”) held by the Fund are not reflected in the graph above. Consequently, the Fund’s overall industry sector allocations may differ from the percentages contained in the graph above.
  The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value (excluding investments in the securities lending reinvestment vehicle, if any). Investment in the securities lending reinvestment vehicle represented 4.2% of the Fund’s net assets at April 30, 2010.
 
 
 
23 


 

GOLDMAN SACHS CONCENTRATED INTERNATIONAL EQUITY FUND
 
 

Schedule of Investments
April 30, 2010 (Unaudited)
 
                     
    Shares   Description   Value
 

 Common Stocks – 86.9%
                     
                     
    Finland – 1.1%
      206,921     Nokia Oyj (Technology Hardware & Equipment)*(a)   $ 2,529,719  
     
     
    France – 6.8%
      50,604     Alstom SA (Capital Goods)     2,969,273  
      136,793     AXA SA (Insurance)(a)     2,718,407  
      149,797     Safran SA (Capital Goods)     3,806,018  
      61,794     Societe Generale (Banks)     3,299,753  
      39,223     Total SA (Energy)     2,134,018  
                     
                  14,927,469  
     
     
    Germany – 8.0%
      72,600     Bayer AG (Pharmaceuticals, Biotechnology & Life Sciences)(a)     4,637,477  
      89,800     Daimler AG (Registered) (Automobiles & Components)*     4,620,529  
      98,947     E.ON AG (Utilities)     3,648,944  
      85,827     Henkel AG & Co. KGaA Preference Shares (Household & Personal Products)     4,601,763  
                     
                  17,508,713  
     
     
    Hong Kong – 2.4%
      385,000     Kerry Properties Ltd. (Real Estate)     1,775,979  
      248,000     Sun Hung Kai Properties Ltd. (Real Estate)     3,438,284  
                     
                  5,214,263  
     
     
    Ireland – 2.0%
      137,336     Kerry Group PLC Class A (Food, Beverage & Tobacco)     4,413,448  
     
     
    Italy – 1.3%
      1,086,711     UniCredit SpA (Banks)*     2,847,946  
     
     
    Japan – 22.5%
      41,900     East Japan Railway Co. (Transportation)     2,802,850  
      109,200     FUJIFILM Holdings Corp. (Technology Hardware & Equipment)     3,742,448  
      126,700     Honda Motor Co. Ltd. (Automobiles & Components)     4,287,218  
      121,000     Kirin Holdings Co. Ltd. (Food, Beverage & Tobacco)     1,733,537  
      395,000     Kubota Corp. (Capital Goods)     3,469,377  
      246,000     Kuraray Co. Ltd. (Materials)     3,220,395  
      356,000     Kyowa Hakko Kirin Co. Ltd. (Pharmaceuticals, Biotechnology & Life Sciences)     3,735,375  
      212,100     Mitsubishi Corp. (Capital Goods)     5,024,203  
      198,000     Mitsubishi Estate Co. Ltd. (Real Estate)     3,569,443  
      333,800     Mitsubishi UFJ Financial Group, Inc. (Banks)     1,739,443  
      13,900     Nintendo Co. Ltd. (Software & Services)     4,669,392  
     
     
      237,600     Nomura Holdings, Inc. (Diversified Financials)     1,642,318  
      352,100     Panasonic Corp. (Consumer Durables & Apparel)     5,159,979  
      65,600     Sumitomo Mitsui Financial Group, Inc. (Banks)     2,169,513  
      110,300     The Kansai Electric Power Co., Inc. (Utilities)     2,454,237  
                     
                  49,419,728  
     
     
    Netherlands – 1.4%
      213,897     Koninklijke KPN NV (Telecommunication Services)(a)     3,209,092  
     
     
    Singapore – 0.7%
      289,000     Wilmar International Ltd. (Food, Beverage & Tobacco)     1,451,083  
     
     
    Spain – 1.7%
      289,645     Banco Santander SA (Banks)     3,682,937  
     
     
    Sweden – 1.5%
      293,801     Biovitrum AB (Pharmaceuticals, Biotechnology & Life Sciences)*     1,692,199  
      157,198     Swedbank AB Class A (Banks)*     1,692,548  
                     
                  3,384,747  
     
     
    Switzerland – 12.8%
      73,917     Compagnie Financiere Richemont SA Class A (Consumer Durables & Apparel)     2,726,350  
      23,714     Kuehne + Nagel International AG (Registered) (Transportation)     2,481,659  
      1,582     Lindt & Spruengli AG (Food, Beverage & Tobacco)     3,504,284  
      107,460     Nobel Biocare Holding AG (Registered) (Health Care Equipment & Services)     2,355,326  
      115,455     Novartis AG (Registered) (Pharmaceuticals, Biotechnology & Life Sciences)     5,886,445  
      46,686     Roche Holding AG (Pharmaceuticals, Biotechnology & Life Sciences)     7,371,215  
      254,600     UBS AG (Registered) (Diversified Financials)*     3,944,309  
                     
                  28,269,588  
     
     
    United Kingdom – 24.7%
      76,793     Anglo American PLC (Materials)*     3,261,837  
      300,030     ASOS PLC (Retailing)*     2,864,519  
      243,693     BG Group PLC (Energy)     4,119,048  
      409,400     BP PLC (Energy)(b)     3,570,742  
      809,937     HSBC Holdings PLC (Banks)     8,247,106  
      672,305     Reed Elsevier PLC (Media)     5,263,414  
      91,255     Rio Tinto PLC (Materials)     4,717,919  
      234,727     Smiths Group PLC (Capital Goods)     4,035,873  
     
     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 24


 

GOLDMAN SACHS CONCENTRATED INTERNATIONAL EQUITY FUND
 
 

 
 
 
 
                     
    Shares   Description   Value
 

 Common Stocks – (continued)
    United Kingdom – (continued)
                     
      105,798     SOCO International PLC (Energy)*   $ 2,631,596  
      326,283     SSL International PLC (Health Care Equipment & Services)     4,274,936  
      147,458     Tullow Oil PLC (Energy)     2,568,188  
      3,300,987     Vodafone Group PLC (Telecommunication Services)     7,314,494  
      162,911     Wellstream Holdings PLC (Energy)     1,487,633  
                     
                  54,357,305  
     
     
    TOTAL COMMON STOCKS
    (Cost $189,267,483)   $ 191,216,038  
     
     
                     
                     

 Exchange Traded Fund – 5.6%
                     
                     
    Australia – 5.6%
      522,872     iShares MSCI Australia Index Fund   $ 12,271,806  
    (Cost $6,151,025)        
     
     
                         
    Shares     Rate     Value  
 

 Short-term Investment(c) – 7.7%
                         
                         
   
JPMorgan U.S. Government Money Market Fund – Capital Shares
      16,845,752       0.082%     $ 16,845,752  
    (Cost $16,845,752)        
     
     
    TOTAL INVESTMENTS BEFORE SECURITIES LENDING REINVESTMENT VEHICLE
    (Cost $212,264,260)   $ 220,333,596  
     
     
                         
                         

 Securities Lending Reinvestment Vehicle(c)(d) – 5.8%
                         
                         
   
Boston Global Investment Trust – Enhanced Portfolio
      12,691,693       0.078%     $ 12,691,693  
    (Cost $12,690,292)        
     
     
    TOTAL INVESTMENTS – 106.0%
    (Cost $224,954,552)   $ 233,025,289  
     
     
   
LIABILITIES IN EXCESS OF OTHER ASSETS – (6.0)%
    (13,108,499 )
     
     
    NET ASSETS – 100.0%   $ 219,916,790  
     
     
 
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets.
 
* Non-income producing security.
 
(a) All or a portion of security is on loan.
 
(b) A portion of this security is segregated as collateral for initial margin requirements on futures transactions.
 
(c) Variable rate security. Interest rate disclosed is that which is in effect at April 30, 2010.
 
(d) Represents an affiliated issuer.
 
 
ADDITIONAL INVESTMENT INFORMATION
 
FUTURES CONTRACTS — At April 30, 2010, the following futures contracts were open:
 
                             
    Number of
                 
    Contracts
    Expiration
  Current
    Unrealized
 
Type   Long (Short)     Date   Value     Gain (Loss)  
   
Dow Jones EURO STOXX 50 Index
    129     June 2010   $ 4,719,884     $ (281,447 )
SPI 200 Index
    62     June 2010     6,911,482       (80,569 )
 
 
TOTAL
                      $ (362,016 )
 
 
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
25 


 

GOLDMAN SACHS INTERNATIONAL SMALL CAP FUND
 
 

Schedule of Investments
April 30, 2010 (Unaudited)
 
                     
    Shares   Description   Value
 

 Common Stocks – 94.7%
                     
                     
    Australia – 4.8%
      1,039,862     Boart Longyear Group (Capital Goods)*   $ 310,397  
      167,924     Centennial Coal Co. Ltd. (Energy)     653,501  
      1,096,801     Charter Hall Retail REIT (REIT)     559,825  
      63,013     Computershare Ltd. (Software & Services)     684,301  
      385,714     DUET Group (Utilities)     629,358  
      167,266     Iluka Resources Ltd. (Materials)*     712,259  
      90,779     Iress Market Technology Ltd. (Software & Services)     710,355  
      161,658     Myer Holdings Ltd. (Retailing)     480,388  
      23,125     Perpetual Ltd. (Diversified Financials)(a)     731,625  
      157,705     Primary Health Care Ltd. (Health Care Equipment & Services)     590,566  
                     
                  6,062,575  
     
     
    Austria – 2.2%
      18,803     Andritz AG (Capital Goods)(a)     1,151,263  
      21,819     RHI AG (Materials)*     728,488  
      17,441     Schoeller-Bleckmann Oilfield Equipment AG (Energy)     911,441  
                     
                  2,791,192  
     
     
    Bermuda – 0.7%
      166,793     Hiscox Ltd. (Insurance)     849,149  
     
     
    Canada – 10.7%
      41,800     Alamos Gold, Inc. (Materials)     620,951  
      72,800     Bankers Petroleum Ltd. (Energy)*     642,142  
      125,000     Bellatrix Exploration Ltd. (Energy)*     478,687  
      47,000     Biovail Corp. (Pharmaceuticals, Biotechnology & Life Sciences)     797,214  
      28,000     Canadian Western Bank (Banks)     661,272  
      28,300     Celtic Exploration Ltd. (Energy)*     594,250  
      75,700     Chartwell Seniors Housing Real Estate Investment Trust (REIT)     557,429  
      18,900     Dorel Industries, Inc. Class B (Consumer Durables & Apparel)     669,259  
      487,600     Eastern Platinum Ltd. (Materials)*     691,222  
      129,353     Equinox Minerals Ltd. (Materials)*(a)     509,068  
      23,000     Evertz Technologies Ltd. (Technology Hardware & Equipment)     316,991  
      29,700     Franco-Nevada Corp. (Materials)     856,090  
      69,400     Groupe Aeroplan, Inc. (Media)     758,358  
      137,300     Lundin Mining Corp. (Materials)*     647,437  
      18,100     MacDonald Dettwiler & Associates Ltd. (Software & Services)*     721,113  
      30,300     Norbord, Inc. (Materials)*     593,293  
      40,400     Pacific Rubiales Energy Corp. (Energy)*     910,770  
      70,400     QLT, Inc. (Pharmaceuticals, Biotechnology & Life Sciences)*     444,938  
     
     
      43,800     Silver Wheaton Corp. (Materials)*     860,650  
      21,100     Toromont Industries Ltd. (Capital Goods)     589,711  
      45,600     Westjet Airlines Ltd. Class A (Transportation)*     606,025  
                     
                  13,526,870  
     
     
    China – 1.3%
      242,000     China Yurun Food Group Ltd. Class H (Food, Beverage & Tobacco)     733,838  
      336,000     Golden Eagle Retail Group Ltd. Class H (Retailing)     647,236  
      678,000     Shui On Land Ltd. Class H (Real Estate)     307,401  
                     
                  1,688,475  
     
     
    France – 3.9%
      57,212     Ingenico SA (Technology Hardware & Equipment)     1,428,529  
      18,606     Publicis Groupe SA (Media)     820,939  
      21,533     Saft Groupe SA (Capital Goods)     782,190  
      16,165     SEB SA (Consumer Durables & Apparel)     1,229,442  
      18,229     SeLoger.com (Media)*     736,277  
                     
                  4,997,377  
     
     
    Germany – 6.1%
      23,813     Adidas AG (Registered) (Consumer Durables & Apparel)(a)     1,403,184  
      50,054     Deutsche Lufthansa AG (Registered) (Transportation)*     832,368  
      57,005     Dialog Semiconductor PLC (Semiconductors & Semiconductor Equipment)*     836,984  
      17,333     HeidelbergCement AG (Materials)(a)     1,073,283  
      26,095     MTU Aero Engines Holding AG (Capital Goods)(a)     1,434,668  
      5,213     Rational AG (Consumer Durables & Apparel)(a)     831,921  
      64,043     Tognum AG (Capital Goods)     1,325,079  
                     
                  7,737,487  
     
     
    Greece – 0.6%
      98,100     Hellenic Exchanges SA (Diversified Financials)     806,477  
     
     
    Hong Kong – 0.9%
      517,000     Belle International Holdings Ltd. (Retailing)     708,914  
      1,060,000     China Resources Cement Holdings Ltd. (Materials)*     483,505  
                     
                  1,192,419  
     
     
                     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 26


 

GOLDMAN SACHS INTERNATIONAL SMALL CAP FUND
 
 

 
 
 
 
                     
    Shares   Description   Value
 

 Common Stocks – (continued)
                     
    Ireland – 1.6%
      3,982,397     Independent News & Media PLC (Media)*   $ 743,206  
      41,225     Kerry Group PLC Class A (Food, Beverage & Tobacco)     1,324,812  
                     
                  2,068,018  
     
     
    Italy – 5.3%
      108,624     ACEA SpA (Utilities)     1,105,981  
      96,098     Azimut Holding SpA (Diversified Financials)(a)     1,082,892  
      167,141     Banca Popolare Di Milano Scarl (Banks)     940,019  
      123,835     Davide Campari-Milano SpA (Food, Beverage & Tobacco)(a)     1,264,302  
      20,859     DiaSorin SpA (Health Care Equipment & Services)     777,662  
      286,231     Gruppo Editoriale L’Espresso SpA (Media)*     860,875  
      1,318,325     Pirelli & C. SpA (Automobiles & Components)*     758,521  
                     
                  6,790,252  
     
     
    Japan – 18.1%
      24,300     Ahresty Corp. (Automobiles & Components)     275,265  
      10,300     Alfresa Holdings Corp. (Health Care Equipment & Services)     516,873  
      64,000     AMADA Co. Ltd. (Capital Goods)     525,448  
      7,200     Benesse Holdings, Inc. (Consumer Services)     331,035  
      24,300     Capcom Co. Ltd. (Software & Services)     490,261  
      63,800     Citizen Holdings Co. Ltd. (Technology Hardware & Equipment)     443,119  
      46,200     Cosel Co. Ltd. (Capital Goods)     646,719  
      250,000     Daikyo, Inc. (Real Estate)*     575,757  
      3,600     Disco Corp. (Semiconductors & Semiconductor Equipment)     254,142  
      17,600     Don Quijote Co. Ltd. (Retailing)     471,584  
      11,200     FP Corp. (Materials)     515,597  
      148     Fuji Media Holdings, Inc. (Media)     237,610  
      17,100     Hitachi Capital Corp. (Diversified Financials)     258,191  
      18,100     Hitachi Chemical Co. Ltd. (Materials)     393,085  
      43,100     Hitachi Transport System Ltd. (Transportation)     623,436  
      5,500     Ibiden Co. Ltd. (Technology Hardware & Equipment)     198,056  
      82,000     Isuzu Motors Ltd. (Automobiles & Components)     260,895  
      80,000     J. Front Retailing Co. Ltd. (Retailing)     465,912  
      9,200     Koa Corp. (Technology Hardware & Equipment)     110,073  
     
     
      8,500     Mabuchi Motor Co. Ltd. (Technology Hardware & Equipment)     468,501  
      105,000     Maeda Corp. (Capital Goods)     350,989  
      22,500     Mimasu Semiconductor Industry Co. Ltd. (Semiconductors & Semiconductor Equipment)     334,017  
      188,000     Mitsui Chemicals, Inc. (Materials)     617,526  
      17,850     Moshi Moshi Hotline, Inc. (Commercial & Professional Services)     367,352  
      134     MTI Ltd. (Software & Services)     235,939  
      35,500     Nichii Gakkan Co. (Health Care Equipment & Services)     347,414  
      149,000     Nippon Chemi-Con Corp. (Technology Hardware & Equipment)*     616,565  
      85,000     Nippon Denko Co. Ltd. (Materials)     600,754  
      39,000     Nippon Kayaku Co. Ltd. (Materials)     342,802  
      14,000     Nipro Corp. (Health Care Equipment & Services)     264,926  
      51,000     Onward Holdings Co. Ltd. (Consumer Durables & Apparel)     421,863  
      35,000     Pacific Metals Co. Ltd. (Materials)     289,481  
      221,000     Press Kogyo Co. Ltd. (Automobiles & Components)*     696,779  
      59,000     Rengo Co. Ltd. (Materials)     338,951  
      15,700     Santen Pharmaceutical Co. Ltd. (Pharmaceuticals, Biotechnology & Life Sciences)     501,391  
      69,700     Sapporo Hokuyo Holdings, Inc. (Banks)     320,805  
      26,200     Seiko Epson Corp. (Technology Hardware & Equipment)     464,135  
      3,600     Shimamura Co. Ltd. (Retailing)     362,679  
      147     So-net M3, Inc. (Health Care Equipment & Services)     531,966  
      138,000     Sumitomo Osaka Cement Co. Ltd. (Materials)     265,037  
      15,800     Taikisha Ltd. (Capital Goods)     276,981  
      84,000     The Awa Bank Ltd. (Banks)     466,425  
      82,000     The Higo Bank Ltd. (Banks)     445,580  
      122,000     The Ogaki Kyoritsu Bank Ltd. (Banks)     399,413  
      75,700     The Sankei Building Co. Ltd. (Real Estate)     545,084  
      91,000     The Shibusawa Warehouse Co. Ltd. (Transportation)     352,615  
      21,100     THK Co. Ltd. (Capital Goods)     463,275  
      138,000     Tokai Tokyo Financial Holdings, Inc. (Diversified Financials)     533,870  
      72,000     Tokuyama Corp. (Materials)     403,227  
      11,100     Toyo Tanso Co. Ltd. (Capital Goods)     592,246  
     
     
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
27 


 

GOLDMAN SACHS INTERNATIONAL SMALL CAP FUND
 
 

 
Schedule of Investments (continued)
April 30, 2010 (Unaudited)
 
 
                     
    Shares   Description   Value
 

 Common Stocks – (continued)
    Japan – (continued)
                     
      87,000     Tsubakimoto Chain Co. (Capital Goods)   $ 399,162  
      41,600     Warabeya Nichiyo Co. Ltd. (Food, Beverage & Tobacco)     496,928  
      18,200     Xebio Co. Ltd. (Retailing)     388,046  
      13,000     Yamato Kogyo Co. Ltd. (Materials)     413,201  
      38,000     Yamazaki Baking Co. Ltd. (Food, Beverage & Tobacco)     485,296  
                     
                  22,994,279  
     
     
    Luxembourg – 3.6%
      15,450     Millicom International Cellular SA SDR (Telecommunication Services)     1,342,317  
      742,830     Regus PLC (Commercial & Professional Services)     1,307,668  
      29,382     SES SA FDR (Media)     673,401  
      34,400     Ternium SA ADR (Materials)*     1,270,736  
                     
                  4,594,122  
     
     
    Netherlands – 2.1%
      28,392     Eurocommercial Properties NV CVA (REIT)     1,064,503  
      8,245     Fugro NV CVA (Energy)     536,694  
      13,115     Koninklijke Vopak NV (Transportation)     1,075,711  
                     
                  2,676,908  
     
     
    Papua New Guinea – 0.5%
      113,419     Oil Search Ltd. (Energy)     589,224  
     
     
    Singapore – 0.5%
      103,000     Singapore Exchange Ltd. (Diversified Financials)     610,658  
     
     
    South Korea – 3.8%
      155,850     Daesang Corp. (Food, Beverage & Tobacco)*     1,104,825  
      69,970     Kangwon Land, Inc. (Consumer Services)     1,085,317  
      42,980     Modetour Network, Inc. (Consumer Services)     1,203,782  
      33,140     Neowiz Games Corp. (Software & Services)*     1,191,027  
      6,590     Samyang Corp. (Food, Beverage & Tobacco)     241,856  
                     
                  4,826,807  
     
     
    Spain – 1.0%
      47,217     Viscofan SA (Food, Beverage & Tobacco)     1,276,692  
     
     
    Sweden – 1.4%
      115,682     Biovitrum AB (Pharmaceuticals, Biotechnology & Life Sciences)*     666,291  
     
     
      146,948     Hufvudstaden AB Class A (Real Estate)     1,121,039  
                     
                  1,787,330  
     
     
    Switzerland – 4.0%
      8,714     Geberit AG (Registered) (Capital Goods)     1,546,488  
      3,096     Kuoni Reisen Holding AG (Registered) (Consumer Services)     1,097,518  
      655     Lindt & Spruengli AG (Food, Beverage & Tobacco)     1,450,889  
      43,621     Nobel Biocare Holding AG (Registered) (Health Care Equipment & Services)     956,092  
                     
                  5,050,987  
     
     
    Taiwan – 0.5%
      1,302,000     Eva Airways Corp. (Transportation)*     675,368  
     
     
    United Kingdom – 21.1%
      161,378     Amlin PLC (Insurance)     923,337  
      76,615     ASOS PLC (Retailing)*     731,477  
      95,189     Charter International PLC (Capital Goods)     1,168,738  
      24,929     Chemring Group PLC (Capital Goods)     1,388,908  
      92,864     Close Brothers Group PLC (Diversified Financials)     1,033,641  
      175,212     CSR PLC (Semiconductors & Semiconductor Equipment)*     1,145,960  
      39,348     Derwent London PLC (REIT)     867,111  
      245,476     Gem Diamonds Ltd. (Materials)*     1,085,489  
      157,147     Greene King PLC (Consumer Services)     1,090,571  
      189,832     Halfords Group PLC (Retailing)     1,470,452  
      225,928     Healthcare Locums PLC (Health Care Equipment & Services)     854,256  
      49,648     HomeServe PLC (Commercial & Professional Services)     1,512,734  
      185,971     John Wood Group PLC (Energy)     1,047,524  
      317,048     Metric Property Investments PLC (REIT)*     502,078  
      201,629     Micro Focus International PLC (Software & Services)     1,612,059  
      54,307     Petropavlovsk PLC (Materials)     970,212  
      57,443     Schroders PLC (Diversified Financials)(b)     1,214,431  
      427,085     SIG PLC (Capital Goods)*     859,002  
      39,655     SOCO International PLC (Energy)*     986,369  
      488,518     Southern Cross Healthcare Ltd. (Health Care Equipment & Services)*     581,389  
      139,256     Travis Perkins PLC (Capital Goods)*     1,798,548  
      92,554     Virgin Media, Inc. (Media)     1,628,025  
     
     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 28


 

GOLDMAN SACHS INTERNATIONAL SMALL CAP FUND
 
 

 
 
 
 
                     
    Shares   Description   Value
 

 Common Stocks – (continued)
    United Kingdom – (continued)
                     
      81,914     Wellstream Holdings PLC (Energy)   $ 748,003  
      502,027     William Hill PLC (Consumer Services)     1,568,632  
                     
                  26,788,946  
     
     
    TOTAL COMMON STOCKS
    (Cost $111,515,839)   $ 120,381,612  
     
     
                         
    Shares   Rate   Value
 

 Short-term Investment(c) – 5.0%
                         
                         
   
JPMorgan U.S. Government Money Market Fund – Capital Shares
      6,300,240       0.082 %   $ 6,300,240  
    (Cost $6,300,240)        
     
     
    TOTAL INVESTMENTS BEFORE SECURITIES LENDING REINVESTMENT VEHICLE
    (Cost $117,816,079)   $ 126,681,852  
     
     
                         
                         

 Securities Lending Reinvestment Vehicle(c)(d) – 6.4%
                         
                         
   
Boston Global Investment Trust – Enhanced Portfolio
      8,096,136       0.078 %   $ 8,096,136  
    (Cost $8,093,855)
     
    TOTAL INVESTMENTS – 106.1%
    (Cost $125,909,934)   $ 134,777,988  
     
     
   
LIABILITIES IN EXCESS OF OTHER ASSETS – (6.1)%
    (7,737,216 )
     
     
    NET ASSETS – 100.0%   $ 127,040,772  
     
     
 
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets.
 
* Non-income producing security.
 
(a) All or a portion of security is on loan.
 
(b) A portion of this security is segregated as collateral for initial margin requirements on futures transactions.
 
(c) Variable rate security. Interest rate disclosed is that which is in effect at April 30, 2010.
 
(d) Represents an affiliated issuer.
 
             
     
     
    Investment Abbreviations:
    ADR     American Depositary Receipt
    CVA     Dutch Certification
    FDR     Fiduciary Depositary Receipt
    REIT     Real Estate Investment Trust
    SDR     Swedish Depositary Receipt
     
     
 
 
ADDITIONAL INVESTMENT INFORMATION
 
FUTURES CONTRACTS — At April 30, 2010, the following futures contracts were open:
 
                             
    Number of
                 
    Contracts
    Expiration
  Current
    Unrealized
 
Type   Long (Short)     Date   Value     Gain (Loss)  
   
Dow Jones STOXX Small 200 Index
    48     June 2010   $ 2,100,069     $ 49,179  
 
 
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
29 


 

GOLDMAN SACHS STRATEGIC INTERNATIONAL EQUITY FUND
 
 

Schedule of Investments
April 30, 2010 (Unaudited)
 
                     
    Shares   Description   Value
 

 Common Stocks – 88.0%
                     
                     
    Belgium – 0.5%
      13,112     Telenet Group Holding NV (Telecommunication Services)*   $ 396,616  
     
     
    Bermuda – 0.4%
      62,464     Hiscox Ltd. (Insurance)     318,006  
     
     
    Denmark – 1.6%
      9,008     Carlsberg A/S Class B (Food, Beverage & Tobacco)     728,026  
      6,995     Novo Nordisk A/S Class B (Pharmaceuticals, Biotechnology & Life Sciences)     575,534  
                     
                  1,303,560  
     
     
    Finland – 2.0%
      57,860     Nokia Oyj (Technology Hardware & Equipment)*(a)     707,369  
      8,034     Outotec Oyj (Capital Goods)     300,248  
      23,415     Sampo Oyj Class A (Insurance)     575,539  
                     
                  1,583,156  
     
     
    France – 6.7%
      1,740     Air Liquide SA (Materials)     202,988  
      5,223     Air Liquide SA – Prime De Fidelite (Materials)*     609,315  
      7,801     Alstom SA (Capital Goods)     457,737  
      29,259     AXA SA (Insurance)(a)     581,447  
      10,924     Compagnie Generale de Geophysique-Veritas (Energy)*     328,881  
      5,396     Ipsen SA (Pharmaceuticals, Biotechnology & Life Sciences)     257,767  
      43,749     Safran SA (Capital Goods)     1,111,567  
      15,392     Societe Generale (Banks)     821,921  
      8,286     Sodexo (Consumer Services)     509,089  
      10,616     Total SA (Energy)     577,588  
                     
                  5,458,300  
     
     
    Germany – 6.2%
      19,300     Bayer AG (Pharmaceuticals, Biotechnology & Life Sciences)(a)     1,232,828  
      21,440     Daimler AG (Registered) (Automobiles & Components)*     1,103,164  
      23,259     E.ON AG (Utilities)     857,740  
      5,627     Hamburger Hafen und Logistik AG (Transportation)(a)     204,755  
      21,287     Henkel AG & Co. KGaA Preference Shares (Household & Personal Products)     1,141,339  
      5,120     Siemens AG (Registered) (Capital Goods)     504,967  
                     
                  5,044,793  
     
     
    Greece – 0.4%
      40,040     Hellenic Exchanges SA (Diversified Financials)     329,167  
     
     
    Hong Kong – 2.9%
      316,000     BOC Hong Kong (Holdings) Ltd. (Banks)     756,276  
      83,000     Kerry Properties Ltd. (Real Estate)     382,873  
      63,000     Sun Hung Kai Properties Ltd. (Real Estate)     873,435  
      30,000     Swire Pacific Ltd. Class A (Real Estate)     335,252  
      3,000     Swire Properties Ltd. (Real Estate)*     14,103  
                     
                  2,361,939  
     
     
    Ireland – 1.2%
      31,005     Kerry Group PLC Class A (Food, Beverage & Tobacco)     996,381  
     
     
    Italy – 4.5%
      27,018     ACEA SpA (Utilities)     275,090  
      44,602     Banca Popolare Di Milano Scarl (Banks)     250,846  
      18,623     Bulgari SpA (Consumer Durables & Apparel)(a)     154,790  
      65,388     Eni SpA (Energy)     1,461,378  
      450,157     UniCredit SpA (Banks)*     1,179,728  
      27,192     Unione di Banche Italiane ScpA (Banks)     336,741  
                     
                  3,658,573  
     
     
    Japan – 22.4%
      12,700     Denso Corp. (Automobiles & Components)     370,627  
      9,300     East Japan Railway Co. (Transportation)     622,112  
      24,900     FUJIFILM Holdings Corp. (Technology Hardware & Equipment)     853,360  
      17,800     Hitachi High-Technologies Corp. (Technology Hardware & Equipment)     388,095  
      25,100     Honda Motor Co. Ltd. (Automobiles & Components)     849,323  
      15,900     Ibiden Co. Ltd. (Technology Hardware & Equipment)     572,561  
      12,800     JFE Holdings, Inc. (Materials)     456,472  
      68,480     JX Holdings, Inc. (Energy)*     382,004  
      40,000     Kirin Holdings Co. Ltd. (Food, Beverage & Tobacco)     573,070  
      73,000     Kubota Corp. (Capital Goods)     641,176  
      31,000     Kuraray Co. Ltd. (Materials)     405,822  
      65,000     Kyowa Hakko Kirin Co. Ltd. (Pharmaceuticals, Biotechnology & Life Sciences)     682,021  
      7,800     Mabuchi Motor Co. Ltd. (Technology Hardware & Equipment)     429,919  
      106,000     Mazda Motor Corp. (Automobiles & Components)     313,025  
      26,400     Mitsubishi Corp. (Capital Goods)     625,360  
     
     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 30


 

GOLDMAN SACHS STRATEGIC INTERNATIONAL EQUITY FUND
 
 

 
 
 
 
                     
    Shares   Description   Value
 

 Common Stocks – (continued)
    Japan – (continued)
                     
      68,000     Mitsubishi Electric Corp. (Capital Goods)   $ 606,049  
      34,000     Mitsubishi Estate Co. Ltd. (Real Estate)     612,934  
      95,000     Mitsubishi Materials Corp. (Materials)*     284,747  
      139,700     Mitsubishi UFJ Financial Group, Inc. (Banks)     727,982  
      31,200     Mitsui & Co. Ltd. (Capital Goods)     468,908  
      18,600     Mitsui Sumitomo Insurance Group Holdings, Inc. (Insurance)     534,612  
      1,300     Nintendo Co. Ltd. (Software & Services)     436,706  
      58,900     Nomura Holdings, Inc. (Diversified Financials)     407,123  
      514     NTT DoCoMo, Inc. (Telecommunication Services)     799,677  
      2,410     ORIX Corp. (Diversified Financials)     220,274  
      37,100     Panasonic Corp. (Consumer Durables & Apparel)     543,696  
      8,800     Santen Pharmaceutical Co. Ltd. (Pharmaceuticals, Biotechnology & Life Sciences)     281,034  
      3,600     Shimamura Co. Ltd. (Retailing)     362,678  
      33,000     Sumitomo Metal Mining Co. Ltd. (Materials)     488,219  
      18,300     Sumitomo Mitsui Financial Group, Inc. (Banks)     605,215  
      91,000     The Bank of Yokohama Ltd. (Banks)     473,146  
      15,500     The Kansai Electric Power Co., Inc. (Utilities)     344,884  
      78,000     Tokuyama Corp. (Materials)     436,830  
      84,000     Toshiba Corp. (Technology Hardware & Equipment)*     484,222  
      13,300     Toyota Motor Corp. (Automobiles & Components)     513,885  
      5,940     Yamada Denki Co. Ltd. (Retailing)     464,471  
                     
                  18,262,239  
     
     
    Luxembourg – 1.0%
      270,935     Regus PLC (Commercial & Professional Services)     476,950  
      14,508     SES SA FDR (Media)     332,507  
                     
                  809,457  
     
     
    Netherlands – 1.0%
      54,223     Koninklijke KPN NV (Telecommunication Services)(a)     813,507  
     
     
    Singapore – 0.8%
      35,000     DBS Group Holdings Ltd. (Banks)     385,385  
      53,000     Wilmar International Ltd. (Food, Beverage & Tobacco)     266,115  
                     
                  651,500  
     
     
    Spain – 2.5%
      93,639     Banco Santander SA (Banks)     1,190,653  
      5,924     Red Electrica Corp. SA (Utilities)     280,676  
      24,700     Telefonica SA (Telecommunication Services)     559,090  
                     
                  2,030,419  
     
     
    Sweden – 1.3%
      51,739     Biovitrum AB (Pharmaceuticals, Biotechnology & Life Sciences)*     298,000  
      24,829     Scania AB Class B (Capital Goods)     433,278  
      31,359     Swedbank AB Class A (Banks)*     337,642  
                     
                  1,068,920  
     
     
    Switzerland – 9.8%
      10,341     Aryzta AG (Food, Beverage & Tobacco)     395,126  
      18,766     Compagnie Financiere Richemont SA Class A (Consumer Durables & Apparel)     692,164  
      7,196     Kuehne + Nagel International AG (Registered) (Transportation)     753,058  
      166     Lindt & Spruengli AG (Food, Beverage & Tobacco)     367,706  
      20,268     Nobel Biocare Holding AG (Registered) (Health Care Equipment & Services)     444,237  
      33,858     Novartis AG (Registered) (Pharmaceuticals, Biotechnology & Life Sciences)     1,726,242  
      12,906     Roche Holding AG (Pharmaceuticals, Biotechnology & Life Sciences)     2,037,718  
      66,583     UBS AG (Registered) (Diversified Financials)*     1,031,516  
      34,565     Xstrata PLC (Materials)     566,999  
                     
                  8,014,766  
     
     
    United Kingdom – 22.8%
      22,005     Admiral Group PLC (Insurance)     441,328  
      53,704     Amlin PLC (Insurance)     307,272  
      23,265     Anglo American PLC (Materials)*     988,197  
      53,001     ASOS PLC (Retailing)*     506,024  
      157,200     Barclays PLC (Banks)     807,506  
      66,346     BG Group PLC (Energy)     1,121,421  
      152,300     BP PLC (Energy)     1,328,344  
      29,488     Cookson Group PLC (Capital Goods)*     252,713  
      40,621     GlaxoSmithKline PLC (Pharmaceuticals, Biotechnology & Life Sciences)     753,965  
      215,614     HSBC Holdings PLC (Banks)     2,195,469  
      915,252     Inchcape PLC (Retailing)*     479,233  
      64,277     John Wood Group PLC (Energy)     362,055  
      54,958     Prudential PLC (Insurance)     482,497  
      150,303     Reed Elsevier PLC (Media)     1,176,708  
      19,172     Rio Tinto PLC (Materials)     991,200  
     
     
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
31 


 

GOLDMAN SACHS STRATEGIC INTERNATIONAL EQUITY FUND
 
 

 
Schedule of Investments (continued)
April 30, 2010 (Unaudited)
 
 
                     
    Shares   Description   Value
 

 Common Stocks – (continued)
    United Kingdom – (continued)
                     
      15,990     Schroders PLC (Diversified Financials)   $ 338,053  
      197,382     SIG PLC (Capital Goods)*     396,997  
      42,778     Smiths Group PLC (Capital Goods)     735,521  
      16,269     SOCO International PLC (Energy)*     404,671  
      53,898     SSL International PLC (Health Care Equipment & Services)     706,168  
      142,117     Tesco PLC (Food & Staples Retailing)     942,620  
      34,151     Tullow Oil PLC (Energy)     594,788  
      911,843     Vodafone Group PLC (Telecommunication Services)     2,020,508  
      28,993     Wellstream Holdings PLC (Energy)     264,751  
                     
                  18,598,009  
     
     
    TOTAL COMMON STOCKS
    (Cost $66,518,318)   $ 71,699,308  
     
     
                     
                     

 Exchange Traded Fund – 5.5%
                     
                     
    Australia – 5.5%
      191,788     iShares MSCI Australia Index Fund   $ 4,501,265  
    (Cost $2,244,137)        
     
     
                         
    Shares   Rate   Value
 

 Short-term Investment(b) – 6.3%
                         
                         
   
JPMorgan U.S. Government Money Market Fund – Capital Shares
      5,096,381       0.082 %   $ 5,096,381  
    (Cost $5,096,381)        
     
     
    TOTAL INVESTMENTS BEFORE SECURITIES LENDING REINVESTMENT VEHICLE
    (Cost $73,858,836)   $ 81,296,954  
     
     
                         
                         

 Securities Lending Reinvestment Vehicle(b)(c) – 4.2%
                         
                         
   
Boston Global Investment Trust – Enhanced Portfolio
      3,395,500       0.078 %   $ 3,395,500  
    (Cost $3,391,314)
     
    TOTAL INVESTMENTS – 104.0%
    (Cost $77,250,150)   $ 84,692,454  
     
     
   
LIABILITIES IN EXCESS OF OTHER ASSETS – (4.0)%
    (3,238,776 )
     
     
    NET ASSETS – 100.0%   $ 81,453,678  
     
     
 
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets.
 
* Non-income producing security.
 
(a) All or a portion of security is on loan.
 
(b) Variable rate security. Interest rate disclosed is that which is in effect at April 30, 2010.
 
(c) Represents an affiliated issuer.
 
             
     
     
    Investment Abbreviation:
    FDR     Fiduciary Depositary Receipt
     
     
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 32


 

GOLDMAN SACHS STRATEGIC INTERNATIONAL EQUITY FUND
 
 

 
 
 
 
ADDITIONAL INVESTMENT INFORMATION
 
 
FUTURES CONTRACTS — At April 30, 2010, the following futures contracts were open:
 
                             
    Number of
                 
    Contracts
    Expiration
  Current
    Unrealized
 
Type   Long (Short)     Date   Value     Gain (Loss)  
   
Dow Jones EURO STOXX 50 Index
    58     June 2010   $ 2,122,118     $ (96,502 )
SPI 200 Index
    22     June 2010     2,452,461       (28,589 )
 
 
TOTAL
                      $ (125,091 )
 
 
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
33 


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

Statements of Assets and Liabilities
April 30, 2010 (Unaudited)
 
                                 
        Concentrated
          Strategic
     
        International
    International
    International
     
        Equity Fund     Small Cap Fund     Equity Fund      
   
Assets:
                                 
   
Investments in securities of unaffiliated issuers, at value (identified cost $212,264,260, $117,816,079 and $73,858,836, respectively)(a)
  $ 220,333,596     $ 126,681,852     $ 81,296,954      
   
Investments in affiliated securities lending reinvestment vehicle, at value (identified cost $12,690,292, $8,093,855 and $3,391,314, respectively)
    12,691,693       8,096,136       3,395,500      
   
Cash(b)
                406,000      
   
Foreign currencies, at value (identified cost $38,788, $209,892 and $24,803, respectively)
    40,330       209,434       29,645      
   
Receivables:
                           
   
Investment securities sold, at value
    4,454,132       916,430       1,248,276      
   
Dividends, at value
    725,651       217,032       255,302      
   
Fund shares sold
    489,911       148,734       66,253      
   
Foreign tax reclaims, at value
    199,509       72,357       105,889      
   
Securities lending income
    22,706       10,388       11,186      
   
Reimbursement from investment adviser
    621       31,296       22,470      
   
Due from broker — variation margin, at value
          29,568            
   
Other assets
    1,821       915       722      
     
     
   
Total assets
    238,959,970       136,414,142       86,838,197      
     
     
                                 
                                 
   
Liabilities:
                                 
   
Payables:
                           
   
Payable upon return of securities loaned
    12,461,198       8,122,826       3,392,314      
   
Investment securities purchased, at value
    5,224,273       993,883       1,577,865      
   
Fund shares redeemed
    958,820       29,233       243,080      
   
Amounts owed to affiliates
    277,347       129,370       98,325      
   
Due to broker — variation margin, at value
    47             2,306      
   
Accrued expenses
    121,495       98,058       70,629      
     
     
   
Total liabilities
    19,043,180       9,373,370       5,384,519      
     
     
                                 
                                 
   
Net Assets:
                                 
   
Paid-in capital
    754,886,947       213,426,088       137,576,131      
   
Accumulated undistributed (distributions in excess of) net investment income
    598,759       (1,476,850 )     66,587      
   
Accumulated net realized loss from investment, futures and foreign currency related transactions
    (543,248,342 )     (93,819,044 )     (63,510,441 )    
   
Net unrealized gain on investments, futures and translation of assets and liabilities denominated in foreign currencies
    7,679,426       8,910,578       7,321,401      
     
     
   
NET ASSETS
  $ 219,916,790     $ 127,040,772     $ 81,453,678      
 
 
                                 
   
Net Assets:
                           
   
Class A
  $ 164,012,191     $ 22,595,280     $ 58,733,446      
   
Class B
    2,496,668       938,207       7,634,092      
   
Class C
    18,909,248       2,056,358       9,295,023      
   
Institutional
    34,127,267       100,996,815       5,749,939      
   
Service
    371,416       454,112            
   
Class IR
                6,725      
   
Class R
                34,453      
 
 
                                 
   
Total Net Assets
  $ 219,916,790     $ 127,040,772     $ 81,453,678      
 
 
   
Shares outstanding $0.001 par value (unlimited shares authorized):
                           
   
Class A
    10,605,824       1,699,252       5,393,044      
   
Class B
    164,197       71,895       778,944      
   
Class C
    1,296,881       159,708       936,009      
   
Institutional
    2,163,266       7,387,048       505,647      
   
Service
    23,842       34,342            
   
Class IR
                618      
   
Class R
                3,178      
 
 
   
Net asset value, offering and redemption price per share:(c)
                           
   
Class A
    $15.46       $13.30       $10.89      
   
Class B
    15.21       13.05       9.80      
   
Class C
    14.58       12.88       9.93      
   
Institutional
    15.78       13.67       11.37      
   
Service
    15.58       13.22            
   
Class IR
                10.88      
   
Class R
                10.84      
 
 
 
(a) Includes loaned securities having a market value of $11,796,169, $7,665,630 and $3,215,213 for the Concentrated International Equity, International Small Cap and Strategic International Equity Funds, respectively.
(b) Represents restricted cash on deposit with counterparty relating to initial margin requirements and collateral on futures transactions for the Strategic International Equity Fund.
(c) Maximum public offering price per share (NAV per share multiplied by 1.0582) for Class A Shares of the Concentrated International Equity, International Small Cap and Strategic International Equity Funds is $16.36, $14.07 and $11.52, respectively. At redemption, Class B and Class C Shares may be subject to a contingent deferred sales charge, assessed on the amount equal to the lesser of the current net asset value or the original purchase price of the shares.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 34


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

Statements of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
 
                             
        Concentrated
          Strategic
 
        International
    International
    International
 
        Equity Fund     Small Cap Fund     Equity Fund  
 
   
Investment income:
                             
   
Dividends (net of foreign taxes withheld of $136,199, $98,743 and $56,229, respectively)
  $ 2,282,798     $ 1,089,418     $ 863,642  
   
Securities lending income — affiliated issuer
    32,075       29,722       15,422  
   
Interest
    31,447       14,531       1,317  
     
     
   
Total investment income
    2,346,320       1,133,671       880,381  
     
     
                             
                             
   
Expenses:
                             
   
Management fees
    1,125,354       605,266       351,897  
   
Distribution and Service fees(a)
    320,223       42,978       163,195  
   
Transfer Agent fees(a)
    188,541       41,273       73,885  
   
Printing and mailing costs
    55,381       32,627       39,718  
   
Custody and accounting fees
    45,449       53,219       45,821  
   
Professional fees
    43,383       41,544       41,469  
   
Registration fees
    31,675       28,728       34,489  
   
Trustee fees
    5,962       5,866       5,848  
   
Service Share fees — Service Plan
    534       558        
   
Service Share fees — Shareholder Administration Plan
    534       558        
   
Other
    296       3,159       379  
     
     
   
Total expenses
    1,817,332       855,776       756,701  
     
     
   
Less — expense reductions
    (65,433 )     (130,934 )     (99,820 )
     
     
   
Net expenses
    1,751,899       724,842       656,881  
     
     
   
NET INVESTMENT INCOME
    594,421       408,829       223,500  
     
     
                             
                             
   
Realized and unrealized gain (loss) from investment, futures and foreign currency related transactions:
                             
   
Net realized gain (loss) from:
                       
   
Investment transactions — unaffiliated issuers
    15,466,577       7,028,212       3,676,449  
   
Securities lending reinvestment vehicle transactions — affiliated issuer
    10,384       442       12,191  
   
Futures transactions
    1,027,486       (43,915 )     201,590  
   
Foreign currency related transactions
    (270,699 )     (17,014 )     (48,522 )
   
Net change in unrealized gain (loss) on:
                       
   
Investments — unaffiliated issuers
    (8,915,411 )     5,012,742       (651,780 )
   
Securities lending reinvestment vehicle — affiliated issuer
    1,401       2,281       (850 )
   
Futures
    (325,516 )     78,336       (123,082 )
   
Translation of asset and liabilities denominated in foreign currencies
    (44,575 )     2,155       (7,915 )
     
     
   
Net realized and unrealized gain from investment, futures and foreign currency related transactions
    6,949,647       12,063,239       3,058,081  
     
     
   
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
  $ 7,544,068     $ 12,472,068     $ 3,281,581  
     
     
 
(a)   Class specific Distribution and Service, and Transfer Agent fees were as follows:
 
                                                                                         
    Distribution and Service Fees     Transfer Agent Fees  
Fund
 
Class A
   
Class B
   
Class C
   
Class R
   
Class A
   
Class B
   
Class C
   
Institutional
   
Service
   
Class IR
   
Class R
 
Concentrated International Equity
  $ 209,769     $ 13,616     $ 96,838     $     $ 160,767     $ 2,592     $ 18,441     $ 6,655     $ 86     $     $  
International Small Cap
    28,131       4,945       9,902             21,573       941       1,886       16,783       90              
Strategic International Equity
    72,951       42,250       47,908       86       55,443       8,027       9,103       1,273             6       33  
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
35 


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

Statements of Changes in Net Assets
 
                     
        Concentrated International Equity Fund  
        For the
       
        Six Months Ended
    For the
 
        April 30, 2010
    Fiscal Year Ended
 
        (Unaudited)     October 31, 2009  
 
   
From operations:
                     
   
Net investment income
  $ 594,421     $ 3,293,511  
   
Net realized gain (loss) from investment, futures and foreign currency related transactions
    16,233,748       (102,000,403 )
   
Net change in unrealized gain (loss) on investments, futures and translation of assets and liabilities denominated in foreign currencies
    (9,284,101 )     133,137,366  
     
     
   
Net increase in net assets resulting from operations
    7,544,068       34,430,474  
     
     
                     
                     
   
Distributions to shareholders:
                     
   
From net investment income
               
   
Class A Shares
    (3,220,118 )     (9,797,017 )
   
Class B Shares
    (32,097 )     (134,774 )
   
Class C Shares
    (294,539 )     (687,439 )
   
Institutional Shares
    (738,538 )     (2,347,731 )
   
Service Shares
    (8,915 )     (29,316 )
   
Class IR Shares
           
   
Class R Shares
           
     
     
   
Total distributions to shareholders
    (4,294,207 )     (12,996,277 )
     
     
                     
                     
   
From capital transactions:
                     
   
Proceeds from sales of shares
    22,175,398       32,208,999  
   
Reinvestment of distributions
    3,840,976       11,754,026  
   
Cost of shares redeemed
    (26,308,408 )(b)     (97,648,131 )(c)
     
     
   
Net increase (decrease) in net assets resulting from share transactions
    (292,034 )     (53,685,106 )
     
     
   
Increase from regulatory settlements
          2,677,920  
     
     
   
Net increase (decrease) in net assets resulting from capital transactions
    (292,034 )     (51,007,186 )
     
     
   
TOTAL INCREASE (DECREASE)
    2,957,827       (29,572,989 )
     
     
                     
                     
   
Net assets:
                     
   
Beginning of period
    216,958,963       246,531,952  
     
     
   
End of period
  $ 219,916,790     $ 216,958,963  
     
     
   
Accumulated undistributed (distributions in excess of) net investment income
  $ 598,759     $ 4,298,545  
     
     
(a)   Service Shares of the Strategic International Equity Fund were liquidated as of March 13, 2009.
(b)   Net of $769, $1,022 and $451 of redemption fees remitted to the Concentrated International Equity, International Small Cap and Strategic International Equity Funds, respectively.
(c)   Net of $3,668, $1,389 and $7,760 of redemption fees remitted to the Concentrated International Equity, International Small Cap and Strategic International Equity Funds, respectively.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 36


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

 
                                 
    International Small Cap Fund     Strategic International Equity Fund  
    For the
          For the
       
    Six Months Ended
    For the
    Six Months Ended
    For the
 
    April 30, 2010
    Fiscal Year Ended
    April 30, 2010
    Fiscal Year Ended
 
    (Unaudited)     October 31, 2009     (Unaudited)     October 31, 2009  
 
     
                                 
    $ 408,829     $ 803,132     $ 223,500     $ 908,809  
      6,967,725       (18,871,190 )     3,841,708       (26,759,130 )
                                 
      5,095,514       40,949,314       (783,627 )     38,927,266  
     
     
      12,472,068       22,881,256       3,281,581       13,076,945  
     
     
                                 
                                 
     
                                 
                                 
      (791,098 )     (1,170,806 )     (703,627 )     (1,613,398 )
      (29,808 )     (35,554 )     (44,977 )     (360,687 )
      (53,969 )     (88,580 )     (55,717 )     (323,444 )
      (2,676,286 )     (1,960,365 )     (93,133 )     (293,328 )
      (14,397 )     (17,655 )      —       (226 )(a)
                  (92 )     (247 )
                  (434 )     (208 )
     
     
      (3,565,558 )     (3,272,960 )     (897,980 )     (2,591,538 )
     
     
                                 
                                 
     
                                 
      31,285,939       43,921,088       10,182,996       26,656,794  
      3,397,774       3,037,684       824,562       2,306,758  
      (11,053,739 )(b)     (25,816,154 )(c)     (12,315,773 )(b)     (24,165,755 )(c)
     
     
      23,629,974       21,142,618       (1,308,215 )     4,797,797  
     
     
            3,831             111,218  
     
     
      23,629,974       21,146,449       (1,308,215 )     4,909,015  
     
     
      32,536,484       40,754,745       1,075,386       15,394,422  
     
     
                                 
                                 
     
                                 
      94,504,288       53,749,543       80,378,292       64,983,870  
     
     
    $ 127,040,772     $ 94,504,288     $ 81,453,678     $ 80,378,292  
     
     
    $ (1,476,850 )   $ 1,679,879     $ 66,587     $ 741,067  
     
     
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
37 


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

Notes to Financial Statements
April 30, 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 “Funds” or individually a “Fund”), along with their corresponding share classes and respective diversification status under the Act:
 
                 
Fund   Share Classes Offered     Diversified/Non-Diversified  
   
Concentrated International Equity and International Small Cap
    A, B, C, Institutional and Service       Diversified  
 
 
Strategic International Equity
    A, B, C, Institutional, IR and R       Diversified  
 
 
Class A Shares are sold with a front-end sales charge of up to 5.50%. Class B Shares are sold with a contingent deferred sales charge that declines from 5.00% to zero, depending upon the period of time the shares are held. Effective November 2, 2009, Class B Shares are no longer available for purchase by new or existing shareholders (although current Class B shareholders may continue to reinvest income and capital gains distributions into Class B Shares and may continue to exchange their shares for Class B Shares of certain other Goldman Sachs Funds). Class C Shares are sold with a contingent deferred sales charge of 1.00% during the first 12 months. Institutional, Service, Class IR and Class R Shares are not subject to a sales charge.
Goldman Sachs Asset Management International (“GSAMI”), an affiliate of Goldman, Sachs & Co. (“Goldman Sachs”), serves as investment adviser to each Fund pursuant to a management agreement (the “Agreement”) with the Trust.
 
2. SIGNIFICANT ACCOUNTING POLICIES
 
 
The following is a summary of the significant accounting policies consistently followed by the Funds. 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. Investment Valuation — The investment valuation policy of the Funds is to value investments at market value. Investments in equity securities and investment companies traded on a foreign securities exchange 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 United States (“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 GSAMI by taking into consideration market or security specific information as discussed below.
 
 
 
 38


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

 
 
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
 
Investments in equity securities and investment companies traded on a 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. Debt securities for which 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 GSAMI believes that such quotations do not accurately reflect fair value, the fair value of the Funds’ investments may be determined based on yield equivalents, a pricing matrix or other sources, under valuation procedures established by the trustees. Unlisted equity securities for which market quotations are available are valued at the last sale price on valuation date, or if no sale occurs, at the last bid price. 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) are valued at the net asset value per share (“NAV”) on the valuation date. 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.
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 the Funds’ 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.
 
B. Security and Fund Share Transactions, and Investment Income — Security and Fund 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 Fund share transactions. Realized gains and losses on sales of portfolio securities are calculated using the identified cost basis. Dividend income is recognized on the ex-dividend date, net of foreign withholding taxes, if any, which are reduced by any amounts reclaimable by the Funds, where applicable. Interest income is recorded on the basis of interest accrued, premium amortized and discount accreted. In addition, it is the Funds’ policy to accrue for foreign capital gains taxes, if applicable, on certain foreign securities held by the Funds. An estimated foreign capital gains tax is recorded daily on net unrealized gains on these securities and is payable upon the sale of such securities when a gain is realized.
 
 
 
39 


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

 
Notes to Financial Statements (continued)
April 30, 2010 (Unaudited)
 
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
 
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 Fund based upon the relative proportion of net assets of each class.
 
C. Expenses — Expenses incurred by the Trust that do not specifically relate to an individual Fund of the Trust are allocated to the Funds on a straight-line and/or pro-rata basis depending upon the nature of the expense and are accrued daily.
 
D. Redemption Fees — All classes of the Funds charge a 2% redemption fee on the redemption of shares (including by exchange) held for 30 calendar days or less. For this purpose, the Funds use a first-in first-out method so that shares held longest will be treated as being redeemed first and shares held shortest will be treated as being redeemed last. Redemption fees are reimbursed to a Fund and are reflected as a reduction in share redemptions. Redemption fees are credited to Paid-in capital and are allocated to each share class of a Fund on a pro-rata basis at the time of payment.
 
E. Federal Taxes and Distributions to Shareholders — It is each Fund’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
 
    Declared/Paid     Declared/Paid  
   
All Funds
    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 Fund’s distributions may be shown in the accompanying financial statements as either from net investment income, net realized gain or capital. The Funds’ 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.
GSAMI has reviewed the Funds’ tax positions for all open tax years (the current and prior three years, as applicable) and has concluded that no provision for income tax is required in the Funds’ financial statements. Such open tax years remain subject to examination and adjustment by tax authorities.
 
F. Foreign Currency Translations — The books and records of the Funds are accounted for in U.S. dollars. Amounts denominated in foreign currencies are translated into U.S. dollars on the following basis: (i) investment valuations, foreign currency and other assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars based upon 4:00 p.m. Eastern Time exchange rates; and (ii) purchases and sales of foreign investments, income and expenses are converted into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions as of 4:00 p.m. Eastern Time.
 
 
 
 40


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

 
 
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
 
Net realized and unrealized gain (loss) on foreign currency transactions represents: (i) foreign exchange gains and losses from the sale and holdings of foreign currencies; (ii) currency gains and losses between trade date and settlement date on investment security transactions and forward foreign currency exchange contracts; and (iii) gains and losses from the difference between amounts of dividends, interest and foreign withholding taxes recorded and the amounts actually received. The effect of changes in foreign currency exchange rates on equity securities and derivative instruments is included with the net realized and change in unrealized gain (loss) on investments on the Statements of Operations. The effect of changes in foreign currency exchange rates on fixed income securities sold during the period is included with the net realized gain (loss) on foreign currency related transactions, while the effect of changes in foreign currency exchange rates on fixed income securities held at period end is included with the net change in unrealized gain (loss) on investments on the Statements of Operations. Net unrealized foreign exchange gains and losses arising from changes in the value of other assets and liabilities as a result of changes in foreign exchange rates are included as increases and decreases in unrealized gain (loss) on foreign currency related transactions.
 
G. Futures Contracts — The Funds may purchase or sell futures contracts to hedge against changes in interest rates, securities prices, currency exchange rates, or to seek to increase total return. Futures contracts are valued at the last settlement price, or in the absence of a sale, the last bid price, at the end of each day on the board of trade or exchange upon which they are traded. Upon entering into a futures contract, the Funds deposit cash or securities in an account on behalf of the broker in an amount sufficient to meet the initial margin requirement. Subsequent payments are made or received by the Funds equal to the daily change in the contract value and are recorded as variation margin receivable or payable with a corresponding offset in unrealized gains or losses. The Funds recognize a realized gain or loss when a contract is closed or expires.
The use of futures contracts involves, to varying degrees, elements of market and counterparty risk which may exceed the amounts recognized in the Statements of Assets and Liabilities. Futures contracts may be illiquid, and exchanges may limit fluctuations in futures contract prices during a single day. Changes in the value of a futures contract may not directly correlate with changes in the value of the underlying securities. These risks may decrease the effectiveness of the Funds’ strategies and potentially result in a loss. The Funds must set aside liquid assets, or engage in other appropriate measures, to cover their obligations under these contracts.
 
3. AGREEMENTS AND AFFILIATED TRANSACTIONS
 
 
A. Management Agreement — Under the Agreement, GSAMI manages the Funds, 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 Funds’ business affairs, including providing facilities, GSAMI is entitled to a management fee computed daily and paid monthly, equal to an annual percentage rate of each Fund’s average daily net assets.
 
 
 
41 


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

 
Notes to Financial Statements (continued)
April 30, 2010 (Unaudited)
 
3. AGREEMENTS AND AFFILIATED TRANSACTIONS (continued)
 
For the six months ended April 30, 2010, contractual management fees with GSAMI were at the following rates:
 
                                                     
    Contractual Management Rate      
    First
    Next
    Next
    Next
    Over
    Effective
     
Fund   $1 billion     $1 billion     $3 billion     $3 billion     $8 billion     Rate      
 
Concentrated International Equity
    1.00 %     0.90 %     0.86 %     0.84 %     0.82 %     1.00 %    
 
 
International Small Cap
    1.10       1.10       0.99       0.94       0.92       1.10      
 
 
Strategic International Equity
    0.85       0.77       0.73       0.72       0.71       0.85      
 
 
 
B. Distribution and Service Plans — The Trust, on behalf of each Fund, 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 personal and account maintenance services, which may then be paid by Goldman Sachs to authorized dealers, at the following annual rates calculated on a Fund’s average daily net assets of each respective share class:
 
                                     
    Distribution and Service Plan Rates      
    Class A*     Class B     Class C     Class R*      
 
Distribution Plan
    0.25 %     0.75 %     0.75 %     0.50 %    
 
 
Service Plan
     —       0.25       0.25            
 
 
 
*   With respect to Class A and Class R Shares, the Distributor at its discretion may use compensation for distribution services paid under the Distribution Plan 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.
 
C. Distribution Agreement — Goldman Sachs also serves as distributor of the shares of the Funds pursuant to a Distribution Agreement and may retain a portion of the Class A front end sales charge and Class B and Class C contingent deferred sales charges. During the six months ended April 30, 2010, Goldman Sachs advised that it retained the following approximate amounts:
 
                         
    Front End
    Contingent Deferred
 
    Sales Charge     Sales Charge  
Fund   Class A     Class B     Class C  
   
Concentrated International Equity
  $ 4,100     $     $ 800  
 
 
International Small Cap
    2,000              
 
 
Strategic International Equity
    4,700              
 
 
 
 
 
 42


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

 
 
3. AGREEMENTS AND AFFILIATED TRANSACTIONS (continued)
 
D. Transfer Agency Agreement — Goldman Sachs also serves as the transfer agent of the Funds 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 B, Class C, Class IR and Class R Shares and 0.04% of the average daily net assets for Institutional and Service Shares.
 
E. Service Plan and Shareholder Administration Plan — The Trust, on behalf of each Fund that offers Service Shares, has adopted a Service Plan and a Shareholder Administration Plan. These plans allow for Service Shares to compensate service organizations for providing varying levels of personal and account maintenance and shareholder administration services to their customers who are beneficial owners of such shares. The Service Plan and Shareholder Administration Plan each provide for compensation to the service organizations in an amount equal to, on an annual basis, 0.25% (0.50% in aggregate) of the average daily net assets of the Service Shares.
 
F. Other Agreements — GSAMI has voluntarily agreed to limit certain “Other Expenses” (excluding management fees, distribution and service fees, transfer agent fees and expenses, service fees and shareholder administration fees (as applicable), taxes, interest, brokerage fees and litigation, indemnification, shareholder meetings and other extraordinary expenses, exclusive of any custody and 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 Fund. Such Other Expenses reimbursement, if any, are computed daily and paid monthly. In addition, the Funds are not obligated to reimburse GSAMI for prior fiscal year expense reimbursements, if any. The Other Expenses limitations for the Concentrated International Equity, International Small Cap and Strategic International Equity Funds as an annual percentage rate of average daily net assets are 0.104%, 0.064% and 0.164%, respectively. Additionally, the Funds have entered into certain offset arrangements with the custodian and transfer agent resulting in a reduction of the Funds’ expenses.
For the six months ended April 30, 2010, the Other Expenses Reimbursement, was as follows (in thousands):
 
         
    Other Expenses
 
Fund   Reimbursement  
   
Concentrated International Equity
  $ 65  
 
 
International Small Cap
    131  
 
 
Strategic International Equity
    100  
 
 
 
As of April 30, 2010, the amounts owed to affiliates of the Funds were as follows (in thousands):
 
                                 
    Management
    Distribution and
    Transfer
       
Fund   Fees     Service Fees     Agent Fees     Total  
   
Concentrated International Equity
  $ 189     $ 56     $ 32     $ 277  
 
 
International Small Cap
    114       8       7       129  
 
 
Strategic International Equity
    59       27       12       98  
 
 
 
 
 
43 


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

 
Notes to Financial Statements (continued)
April 30, 2010 (Unaudited)
 
3. AGREEMENTS AND AFFILIATED TRANSACTIONS (continued)
 
G. Line of Credit Facility — As of April 30, 2010, the Funds participated 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 GSAMI or its affiliates. Pursuant to the terms of the facility, the Funds and other borrowers could increase the credit amount by an additional $340,000,000, for a total of up to $1 billion. This facility is to be used solely for temporary or emergency purposes. The interest rate on borrowings is based on the federal funds rate. The facility also requires a fee to be paid by the Funds based on the amount of the commitment that has not been utilized. For the six months ended April 30, 2010, the Funds did not have any borrowings under the facility. Effective May 11, 2010, the facility decreased to $580,000,000.
 
H. Other Transactions with Affiliates — For the six months ended April 30, 2010, Goldman Sachs earned approximately $9,900, $1,500 and $2,500, in brokerage commissions from portfolio transactions, including futures transactions executed with Goldman Sachs as the Futures Commission Merchant, on behalf of the Concentrated International Equity, International Small Cap and Strategic International Equity Funds, respectively.
As of April 30, 2010, the Goldman Sachs Satellite Strategies Portfolio was the beneficial owner of approximately 65% of the outstanding shares of the International Small Cap Fund.
As of April 30, 2010, the Goldman Sachs Group, Inc. (“GSG”) was the beneficial owner of approximately 100% and 19% of the Class IR and Class R shares, respectively, of the Strategic International Equity Fund.
 
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.
 
 
 
 44


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

 
 
4. FAIR VALUE OF INVESTMENTS (continued)
 
The following is a summary of the Funds’ investments categorized in the fair value hierarchy, as of April 30, 2010:
 
                         
Concentrated International Equity   Level 1     Level 2     Level 3  
   
Assets
                       
Common Stock and/or Other Equity Investments
  $ 12,271,806     $ 191,216,038 (a)   $  
Short-term Investment
    16,845,752              
Securities Lending Reinvestment Vehicle
          12,691,693        
 
 
Total
  $ 29,117,558     $ 203,907,731     $  
 
 
Liabilities
                       
Derivatives
  $ (362,016 )   $     $  
 
 
 
                         
International Small Cap   Level 1     Level 2     Level 3  
   
Assets
                       
Common Stock and/or Other Equity Investments
  $ 15,916,564     $ 104,465,048 (a)   $  
Short-term Investment
    6,300,240              
Securities Lending Reinvestment Vehicle
          8,096,136        
Derivatives
    49,179              
 
 
Total
  $ 22,265,983     $ 112,561,184     $  
 
 
 
                         
Strategic International Equity   Level 1     Level 2     Level 3  
   
Assets
                       
Common Stock and/or Other Equity Investments
  $ 4,501,265     $ 71,699,308 (a)   $  
Short-term Investment
    5,096,381              
Securities Lending Reinvestment Vehicle
          3,395,500        
 
 
Total
  $ 9,597,646     $ 75,094,808     $  
 
 
Liabilities
                       
Derivatives
  $ (125,091 )   $     $  
 
 
 
(a) To adjust for the time difference between local market close and the calculation of net asset value, the Funds utilize fair value model prices for international equities provided by an independent fair value service resulting in a Level 2 classification.
 
5. INVESTMENTS IN DERIVATIVES
 
 
The Funds may make investments in derivative instruments, including, but not limited to, options, futures, swaps and other derivatives relating to foreign currency transactions. A derivative is an instrument whose value is derived from underlying assets, indices, reference rates or a combination of these factors. Derivative instruments may be privately negotiated contracts (often referred to as over the counter (“OTC”) derivatives) or they may be listed and traded on an exchange. Derivative contracts may involve future commitments to purchase or sell financial instruments or commodities at specified terms on a specified date, or to exchange interest payment streams or currencies based on a notional or contractual amount. Derivative instruments may involve a high degree of financial risk. The use of derivatives also
 
 
 
45 


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

 
Notes to Financial Statements (continued)
April 30, 2010 (Unaudited)
 
5. INVESTMENTS IN DERIVATIVES (continued)
 
involves the risk of loss if the investment adviser is incorrect in its expectation of the timing or level of fluctuations in securities prices, interest rates or currency prices. Investments in derivative instruments also include the risk of default by the counterparty, the risk that the investment may not be liquid and the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instrument.
The following table sets forth the gross value of the Funds’ derivative contracts for trading activities by certain risk types as of April 30, 2010. The values in the table below exclude the effects of cash collateral received or posted pursuant to derivative contracts, and therefore are not representative of the Funds’ net exposure.
 
                                       
   
          Statements of Assets
            Statements of Assets
     
          and Liabilities
    Derivative
      and Liabilities
  Derivative
 
Fund   Risk     Location     Assets       Location   Liabilities  
   
Concentrated International Equity
    Equity           $       Unrealized loss on futures(a)   $ (362,016 )
 
 
International Small Cap
    Equity       Unrealized gain on futures(a )     49,179            
 
 
Strategic International Equity
    Equity                   Unrealized loss on futures(a)     (125,091 )
 
 
 
(a) Includes cumulative appreciation (depreciation) on futures contracts described in the Additional Investment Information sections of the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.
The following table sets forth by certain risk types the Funds’ gains (losses) related to derivative activities and their indicative volumes for the six months ended April 30, 2010. These gains (losses) should be considered in the context that derivative contracts may have been executed to economically hedge securities and accordingly, gains (losses) on derivative contracts may offset (losses) gains attributable to securities. These gains (losses) are included in “Net realized gain (loss)” or “Net change in unrealized gain (loss)” on the Statements of Operations:
 
                                   
   
              Net
    Net Change in
    Average
 
              Realized
    Unrealized
    Number of
 
Fund   Risk     Statements of Operations Location   Gain (Loss)     Gain (Loss)     Contracts(a)  
   
Concentrated International Equity
    Equity     Net realized gain (loss) from
futures transactions/Net change
in unrealized gain (loss) on futures
  $ 1,027,486     $(325,516)       126  
 
 
International Small Cap
    Equity     Net realized gain (loss) from
futures transactions/Net change
in unrealized gain (loss) on futures
    (43,915 )   78,336       43  
 
 
Strategic International Equity
    Equity     Net realized gain (loss) from
futures transactions/Net change
in unrealized gain (loss) on futures
    201,590     (123,082)       53  
 
 
 
(a) Average number of contracts is based on the average of quarter end balances for the six months ended April 30, 2010.
 
 
 
 46


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

 
 
6. PORTFOLIO SECURITIES TRANSACTIONS
 
 
The cost of purchases and proceeds from sales and maturities of long-term securities for the six months ended April 30, 2010, were as follows:
 
                 
Fund   Purchases     Sales  
   
Concentrated International Equity
  $ 132,158,065     $ 142,712,987  
 
 
International Small Cap
    79,427,694       63,005,953  
 
 
Strategic International Equity
    45,049,749       48,592,487  
 
 
 
7. SECURITIES LENDING
 
 
Pursuant to exemptive relief granted by the Securities and Exchange Commission (“SEC”) and the terms and conditions contained therein, the Funds may lend their securities through a securities lending agent, Goldman Sachs Agency Lending (“GSAL”), a wholly-owned subsidiary of Goldman Sachs, to certain qualified borrowers including Goldman Sachs and affiliates. In accordance with the Funds’ securities lending procedures, the Funds receive cash collateral at least equal to the market value of the securities on loan. The market value of the loaned securities is determined at the close of business of the Funds at their last sale price or official closing price on the principal exchange or system on which they are traded, and any additional required collateral is delivered to the Funds on the next business day. As with other extensions of credit, the Funds may experience a delay in the recovery of their securities or incur a loss should the borrower of the securities breach its agreement with the Funds or become insolvent at a time when the collateral is insufficient to cover the cost of repurchasing securities on loan.
The Funds invest the cash collateral received in connection with securities lending transactions in the Enhanced Portfolio of Boston Global Investment Trust (“Enhanced Portfolio”), a Delaware statutory trust. The Enhanced Portfolio, deemed an affiliate of the Trust, is exempt from registration under Section 3(c)(7) of the Act and is managed by Goldman Sachs Asset Management, L.P. (“GSAM”), for which GSAM may receive an investment advisory fee of up to 0.10% on an annualized basis of the average daily net assets of the Enhanced Portfolio. The Enhanced Portfolio invests primarily in short-term investments, but is not a “money market fund” subject to the requirements of Rule 2a-7 of the Act. The Funds’ investment of cash collateral in the Enhanced Portfolio is subject to a net asset value that may fall or rise due to market and credit conditions. Effective May 26, 2010, the Funds are currently not participating in the securities lending program.
 
 
 
47 


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

 
Notes to Financial Statements (continued)
April 30, 2010 (Unaudited)
 
7. SECURITIES LENDING (continued)
 
Both the Funds and GSAL receive compensation relating to the lending of the Funds’ securities. The amounts earned by the Funds for the six months ended April 30, 2010, are reported under Investment Income on the Statements of Operations. The table below details securities lending activity with affiliates of Goldman Sachs as of, and for the six months ended April 30, 2010:
 
                         
    Earnings of GSAL
    Amounts Received
       
    Relating to
    by the Funds
    Amounts Payable to
 
    Securities
    from Lending to
    Goldman Sachs
 
    Loaned for the
    Goldman Sachs for
    Upon Return of
 
    Six Months Ended
    the Six Months Ended
    Securities Loaned
 
Fund   April 30, 2010     April 30, 2010     as of April 30, 2010  
   
Concentrated International Equity
  $ 3,850     $ 6,642     $ 2,775,199  
 
 
International Small Cap
    3,331       7,570       540,000  
 
 
Strategic International Equity
    1,778       2,552       597,614  
 
 
The following table provides information about the Funds’ investment in the Enhanced Portfolio for the six months ended April 30, 2010 (in thousands):
 
                                         
    Number of
                         
    Shares Held
                Number of
    Value at
 
    Beginning of
    Shares
    Shares
    Shares Held
    End of
 
Fund   Period     Bought     Sold     End of Period     Period  
   
Concentrated International Equity
    10,439       56,122       (53,869 )     12,692     $ 12,692  
 
 
International Small Cap
    1,142       21,262       (14,308 )     8,096       8,096  
 
 
Strategic International Equity
    5,428       23,976       (26,008 )     3,396       3,396  
 
 
 
8. TAX INFORMATION
 
 
As of the most recent fiscal year end, October 31, 2009, the Funds’ capital loss carryforwards on a tax-basis were as follows:
 
                         
    Concentrated
          Strategic
 
    International
    International
    International
 
    Equity     Small Cap     Equity  
   
Capital loss carryforward1
                       
Expiring 2010
  $ (265,232,801 )   $ (51,047,001 )   $  
Expiring 2011
    (69,572,929 )            
Expiring 2016
    (112,531,656 )     (29,417,166 )     (36,073,466 )
Expiring 2017
    (106,107,378 )     (19,170,549 )     (28,233,571 )
 
 
Total capital loss carryforward
  $ (553,444,764 )   $ (99,634,716 )   $ (64,307,037 )
 
 
 
1 Expiration occurs on October 31 of the year indicated.
 
 
 
 48


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

 
 
8. TAX INFORMATION (continued)
 
As of April 30, 2010, the Funds’ aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes was as follows:
 
                         
    Concentrated
    International
    Strategic
 
    International
    Small
    International
 
    Equity     Cap     Equity  
   
Tax cost
  $ 230,987,727     $ 128,947,274     $ 80,340,192  
 
 
Gross unrealized gain
    12,026,993       10,021,863       6,306,441  
Gross unrealized loss
    (9,989,431 )     (4,191,149 )     (1,954,179 )
 
 
Net unrealized security gain
    2,037,562       5,830,714       4,352,262  
 
 
Net unrealized gain (loss) on other investments
    (391,311 )     42,524       (120,903 )
 
 
Net unrealized gain
  $ 1,646,251     $ 5,873,238     $ 4,231,359  
 
 
The difference between GAAP-basis and tax-basis unrealized gains (losses) is attributable primarily to wash sales, differences related to the tax treatment of partnership investments and Passive Foreign Investment Company investments and securities on loan as of the most recent fiscal year end.
 
9. OTHER RISKS
 
 
Foreign Custody Risk — A Fund that invests in foreign securities may hold such securities and foreign currency with foreign banks, agents, and securities depositories (each a “Foreign Custodian”) appointed by the Fund’s custodian. Investments in emerging markets may be subject to greater custody risks than investments in more developed markets. Custody services in emerging market countries are often undeveloped and may be less regulated than in more developed countries, and thus may not afford the same level of investor protection as would apply in developed countries. In some countries, Foreign Custodians may be subject to little or no regulatory oversight or independent evaluation of their operations. Further, the laws of certain countries may place limitations on a Fund’s ability to recover its assets if a Foreign Custodian enters into bankruptcy.
 
Funds’ Shareholder Concentration Risk — Certain funds, accounts, individuals or Goldman Sachs affiliates may from time to time own (beneficially or of record) or control a significant percentage of the Funds’ shares. Redemptions by these funds, accounts or individuals of their holdings in the Funds may impact the Funds’ liquidity and NAV. These redemptions may also force the Funds to sell securities.
 
Issuer Concentration Risk — The Concentrated International Equity Fund intends to invest in a relatively small number of issuers. As a result, it may be subject to greater risks than a fund that invests in a greater number of issuers. A change in the value of any single investment held by the Fund may affect the overall value of the Fund more than it would affect a mutual fund that holds more investments. In particular, the Fund may be more susceptible to adverse developments affecting any single issuer in the Fund and may be susceptible to greater losses because of these developments.
 
Market and Credit Risks — In the normal course of business, the Funds trade financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk). Additionally, the Funds 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 Funds have unsettled or open transaction defaults.
 
 
 
49 


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

 
Notes to Financial Statements (continued)
April 30, 2010 (Unaudited)
 
9. OTHER RISKS (continued)
 
Investing in foreign markets may involve special risks and considerations not typically associated with investing in the U.S. These risks include revaluation of currencies, high rates of inflation, repatriation restrictions on income and capital, and adverse political and economic developments. Moreover, securities issued in these markets may be less liquid, be subject to government ownership controls, have delayed settlements and their prices may be more volatile than those of comparable securities in the U.S.
 
10. 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 Funds. Additionally, in the course of business, the Funds enter into contracts that contain a variety of indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, GSAMI believes the risk of loss under these arrangements to be remote.
 
11. OTHER MATTERS
 
 
Legal Proceedings — On April 16, 2010, the 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 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. Goldman Sachs 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 Goldman Sachs and GSAM, neither the matters alleged in this or any such similar proceedings nor their eventual resolution are likely to have a material affect on the ability of Goldman Sachs, 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 Goldman Sachs, 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.
 
Regulatory Settlements — The Concentrated International Equity, International Small Cap and Strategic International Equity Funds received payments of $2,677,920, $3,831 and $111,218, respectively, relating to certain regulatory settlements that the Funds had participated in. These payments had been included as an increase to Capital Transactions on the Statements of Changes in Net Assets during the fiscal year ended October 31, 2009.
 
12. SUBSEQUENT EVENT
 
 
Subsequent events after the balance sheet date have been evaluated through the date the financial statements were issued. GSAMI has concluded that there is no impact requiring adjustment or disclosure in the financial statements.
 
 
 
 50


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

 
 
13. SUMMARY OF SHARE TRANSACTIONS
 
Share activity is as follows:
 
                                 
    Concentrated International Equity Fund  
    For the Six Months Ended
       
    April 30, 2010
    For the Fiscal Year Ended
 
    (Unaudited)     October 31, 2009  
    Shares     Dollars     Shares     Dollars  
   
Class A Shares
                               
Shares sold
    788,117     $ 12,505,901       1,351,816     $ 17,153,320  
Reinvestment of distributions
    186,336       2,895,667       737,789       8,897,733  
Shares converted from Class B(a)
    6,141       95,795       21,484       268,828  
Shares redeemed
    (1,220,199 )     (19,164,748 )     (5,491,220 )     (68,726,177 )
 
 
      (239,605 )     (3,667,385 )     (3,380,131 )     (42,406,296 )
 
 
Class B Shares
                               
Shares sold
    2,353       38,484       13,360       157,668  
Reinvestment of distributions
    2,028       31,083       10,562       125,579  
Shares converted to Class A(a)
    (6,236 )     (95,795 )     (21,858 )     (268,828 )
Shares redeemed
    (28,083 )     (431,997 )     (97,757 )     (1,196,084 )
 
 
      (29,938 )     (458,225 )     (95,693 )     (1,181,665 )
 
 
Class C Shares
                               
Shares sold
    175,941       2,625,380       502,879       6,201,335  
Reinvestment of distributions
    18,782       276,090       54,651       625,757  
Shares redeemed
    (187,795 )     (2,787,983 )     (401,294 )     (4,762,074 )
 
 
      6,928       113,487       156,236       2,065,018  
 
 
Institutional Shares
                               
Shares sold
    428,110       6,971,050       663,039       8,559,230  
Reinvestment of distributions
    40,247       637,108       170,389       2,092,373  
Shares redeemed
    (235,473 )     (3,753,722 )     (1,927,111 )     (22,752,181 )
 
 
      232,884       3,854,436       (1,093,683 )     (12,100,578 )
 
 
Service Shares
                               
Shares sold
    2,141       34,583       11,069       137,446  
Reinvestment of distributions
    65       1,028       1,035       12,584  
Shares redeemed
    (10,566 )     (169,958 )     (18,890 )     (211,615 )
 
 
      (8,360 )     (134,347 )     (6,786 )     (61,585 )
 
 
NET DECREASE
    (38,091 )   $ (292,034 )     (4,420,057 )   $ (53,685,106 )
 
 
 
(a) Class B Shares automatically convert into Class A Shares on or about the fifteenth day of the last month of the calendar quarter that is eight years after the initial purchase date of either the Fund or another Goldman Sachs Fund.
 
 
 
51 


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

 
Notes to Financial Statements (continued)
April 30, 2010 (Unaudited)
 
13. SUMMARY OF SHARE TRANSACTIONS (continued)
 
Share activity is as follows:
 
                                 
    International Small Cap Fund  
    For the Six Months Ended
       
    April 30, 2010
    For the Fiscal Year Ended
 
    (Unaudited)     October 31, 2009  
    Shares     Dollars     Shares     Dollars  
   
Class A Shares
                               
Shares sold
    141,563     $ 1,841,294       513,567     $ 5,267,594  
Reinvestment of distributions
    58,797       728,490       124,435       1,088,809  
Shares converted from Class B(a)
    1,421       18,099       6,023       57,449  
Shares redeemed
    (373,077 )     (4,768,279 )     (1,057,824 )     (9,912,015 )
 
 
      (171,296 )     (2,180,396 )     (413,799 )     (3,498,163 )
 
 
Class B Shares
                               
Shares sold
    11,394       148,628       15,555       162,891  
Reinvestment of distributions
    2,315       28,197       3,722       32,050  
Shares converted to Class A(a)
    (1,446 )     (18,099 )     (6,131 )     (57,449 )
Shares redeemed
    (24,905 )     (312,045 )     (36,756 )     (340,259 )
 
 
      (12,642 )     (153,319 )     (23,610 )     (202,767 )
 
 
Class C Shares
                               
Shares sold
    14,046       176,668       15,445       163,803  
Reinvestment of distributions
    3,450       41,511       8,772       74,562  
Shares redeemed
    (20,164 )     (250,269 )     (109,132 )     (945,896 )
 
 
      (2,668 )     (32,090 )     (84,915 )     (707,531 )
 
 
Institutional Shares
                               
Shares sold
    2,217,490       29,074,628       3,682,797       38,252,286  
Reinvestment of distributions
    203,346       2,586,567       203,979       1,827,650  
Shares redeemed
    (436,291 )     (5,666,592 )     (1,393,920 )     (14,553,667 )
 
 
      1,984,545       25,994,603       2,492,856       25,526,269  
 
 
Service Shares
                               
Shares sold
    3,548       44,721       7,607       74,514  
Reinvestment of distributions
    1,056       13,009       1,680       14,613  
Shares redeemed
    (4,223 )     (56,554 )     (6,487 )     (64,317 )
 
 
      381       1,176       2,800       24,810  
 
 
NET INCREASE
    1,798,320     $ 23,629,974       1,973,332     $ 21,142,618  
 
 
 
(a) Class B Shares automatically convert into Class A Shares on or about the fifteenth day of the last month of the calendar quarter that is eight years after the initial purchase date of either the Fund or another Goldman Sachs Fund.
 
 
 
 52


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 

 
 
13. SUMMARY OF SHARE TRANSACTIONS (continued)
 
Share activity is as follows:
 
                                 
    Strategic International Equity Fund  
    For the Six Months Ended
       
    April 30, 2010
    For the Fiscal Year Ended
 
    (Unaudited)     October 31, 2009  
    Shares     Dollars     Shares     Dollars  
   
Class A Shares
                               
Shares sold
    812,259     $ 9,026,273       2,576,651     $ 23,601,160  
Reinvestment of distributions
    59,346       642,718       170,907       1,421,942  
Shares converted from Class B(a)
    41,721       454,850       114,036       982,696  
Shares redeemed
    (778,360 )     (8,325,994 )     (1,841,347 )     (15,754,629 )
 
 
      134,966       1,797,847       1,020,247       10,251,169  
 
 
Class B Shares
                               
Shares sold
    23,347       229,910       113,452       894,865  
Reinvestment of distributions
    4,403       43,059       45,318       340,328  
Shares converted to Class A(a)
    (46,263 )     (454,850 )     (126,651 )     (982,696 )
Shares redeemed
    (149,449 )     (1,477,500 )     (409,911 )     (3,322,004 )
 
 
      (167,962 )     (1,659,381 )     (377,792 )     (3,069,507 )
 
 
Class C Shares
                               
Shares sold
    52,124       522,161       118,805       974,710  
Reinvestment of distributions
    4,910       48,660       35,937       273,480  
Shares redeemed
    (113,483 )     (1,134,703 )     (457,060 )     (3,637,138 )
 
 
      (56,449 )     (563,882 )     (302,318 )     (2,388,948 )
 
 
Institutional Shares
                               
Shares sold
    35,522       404,457       128,901       1,156,319  
Reinvestment of distributions
    7,936       89,601       31,216       270,328  
Shares redeemed
    (119,482 )     (1,377,497 )     (162,036 )     (1,444,176 )
 
 
      (76,024 )     (883,439 )     (1,919 )     (17,529 )
 
 
Service Shares(b)
                               
Shares sold
                      5  
Reinvestment of distributions
                26       226  
Shares redeemed
                (628 )     (4,659 )
 
 
                  (602 )     (4,428 )
 
 
Class IR Shares
                               
Shares sold
    1       10       4       33  
Reinvestment of distributions
    8       91       30       246  
Shares redeemed
                (4 )     (33 )
 
 
      9       101       30       246  
 
 
Class R Shares
                               
Shares sold
    17       185       2,812       29,702  
Reinvestment of distributions
    40       433       25       208  
Shares redeemed
    (7 )     (79 )     (288 )     (3,116 )
 
 
      50       539       2,549       26,794  
 
 
NET INCREASE (DECREASE)
    (165,410 )   $ (1,308,215 )     340,195     $ 4,797,797  
 
 
 
(a) Class B Shares automatically convert into Class A Shares on or about the fifteenth day of the last month of the calendar quarter that is eight years after the initial purchase date of either the Fund or another Goldman Sachs Fund.
(b) Service Shares of the Strategic International Equity Fund were liquidated as of March 13, 2009.
 
 
 
53 


 

GOLDMAN SACHS CONCENTRATED INTERNATIONAL EQUITY FUND
 
 

Financial Highlights
Selected Data for a Share Outstanding Throughout Each Period
 
                                                 
              Income (loss) from
           
              investment operations            
                                Distributions
     
        Net asset
                      to shareholders
     
        value,
    Net
    Net realized
    Total from
    from net
     
        beginning
    investment
    and unrealized
    investment
    investment
     
    Year - Share Class   of period     income (loss)(a)     gain (loss)     operations     income      
 
 FOR THE SIX MONTHS ENDED APRIL 30, (UNAUDITED)
                                                 
                                                 
    2010 - A   $ 15.22     $ 0.04     $ 0.50     $ 0.54     $ (0.30 )    
    2010 - B     14.90       (0.02 )     0.50       0.48       (0.17 )    
    2010 - C     14.35       (0.02 )     0.48       0.46       (0.23 )    
    2010 - Institutional     15.55       0.08       0.50       0.58       (0.35 )    
    2010 - Service     15.32       0.03       0.51       0.54       (0.28 )    
                                                 
 FOR THE FISCAL YEAR ENDED OCTOBER 31,
                                                 
                                                 
    2009 - A     13.18       0.21       2.41       2.62       (0.75 )    
    2009 - B     12.72       0.12       2.36       2.48       (0.47 )    
    2009 - C     12.40       0.10       2.29       2.39       (0.61 )    
    2009 - Institutional     13.50       0.26       2.48       2.74       (0.86 )    
    2009 - Service     13.28       0.19       2.43       2.62       (0.75 )    
                                                 
 FOR THE PERIOD SEPTEMBER 1, 2008 TO OCTOBER 31, 2008*
                                                 
                                                 
    2008 - A     19.40       (e)     (6.22 )     (6.22 )          
    2008 - B     18.75       (0.02 )     (6.01 )     (6.03 )          
    2008 - C     18.28       (0.02 )     (5.86 )     (5.88 )          
    2008 - Institutional     19.87       0.01       (6.38 )     (6.37 )          
    2008 - Service     19.55       (e)     (6.27 )     (6.27 )          
                                                 
 FOR THE FISCAL YEARS ENDED AUGUST 31,
                                                 
                                                 
    2008 - A     24.04       0.44 (f)     (4.89 )     (4.45 )     (0.28 )    
    2008 - B     23.19       0.21 (f)     (4.71 )     (4.50 )     (0.03 )    
    2008 - C     22.68       0.26 (f)     (4.63 )     (4.37 )     (0.12 )    
    2008 - Institutional     24.61       0.58 (f)     (5.03 )     (4.45 )     (0.38 )    
    2008 - Service     24.17       0.41 (f)     (4.93 )     (4.52 )     (0.19 )    
                                                 
     
     
    2007 - A     21.05       0.24       2.91       3.15       (0.16 )    
    2007 - B     20.32       0.05       2.82       2.87            
    2007 - C     19.90       0.10       2.71       2.81       (0.03 )    
    2007 - Institutional     21.53       0.34       2.97       3.31       (0.23 )    
    2007 - Service     21.19       0.20       2.95       3.15       (0.17 )    
                                                 
     
     
    2006 - A     17.78       0.23       3.19       3.42       (0.15 )    
    2006 - B     17.16       0.05       3.11       3.16            
    2006 - C     16.84       0.07       3.03       3.10       (0.04 )    
    2006 - Institutional     18.19       0.31       3.25       3.56       (0.22 )    
    2006 - Service     17.91       0.27       3.13       3.40       (0.12 )    
                                                 
     
     
    2005 - A     14.73       0.09       3.30       3.39       (0.34 )    
    2005 - B     14.26       (0.04 )     3.20       3.16       (0.26 )    
    2005 - C     14.03       (0.03 )     3.13       3.10       (0.29 )    
    2005 - Institutional     15.05       0.14       3.41       3.55       (0.41 )    
    2005 - Service     14.82       0.06       3.34       3.40       (0.31 )    
                                                 
     
     
 
* The Fund changed its fiscal year end from August 31 to October 31.
 
(a) Calculated based on the average shares outstanding methodology.
 
(b) Assumes investment at the net asset value at the beginning of the period, reinvestment of all 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 Fund distributions or the redemption of Fund shares. Total returns for periods less than one full year are not annualized.
 
(c) Annualized.
 
(d) Total return reflects the impact of payments for regulatory settlements entitled to be received during the period and recorded as an increase to capital by the Fund. Excluding such payments, the total return would have been:
                                         
    Class A     Class B     Class C     Institutional     Service  
   
For the Fiscal Year Ended October 31, 2009
    21.64 %     20.44 %     20.79 %     21.99 %     21.50 %
For the Fiscal Year Ended August 31, 2008
    (18.88 )     (19.52 )     (19.48 )     (18.54 )     (18.97 )
 
 
 
(e) Amount is less than $0.005 per share.
 
(f) Includes income recognized from a corporate action which amounted to $0.23 per share and 0.98% of average net assets.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 54


 

GOLDMAN SACHS CONCENTRATED INTERNATIONAL EQUITY FUND
 
 

 
                                                                     
                                        Ratio of
           
    Increase
                Net assets,
    Ratio of
    Ratio of
    net investment
           
    from
    Net asset
          end of
    net expenses
    total expenses
    income (loss)
    Portfolio
     
    regulatory
    value, end
    Total
    period
    to average
    to average
    to average
    turnover
     
    settlements     of period     return(b)     (in 000s)     net assets     net assets     net assets     rate      
 
 
                                                                     
                                                                     
    $     $ 15.46       3.45 %   $ 164,012       1.54 %(c)     1.60 %(c)     0.54 %(c)     64 %    
            15.21       3.14       2,497       2.29 (c)     2.35 (c)     (0.24 )(c)     64      
            14.58       3.16       18,909       2.29 (c)     2.35 (c)     (0.20 )(c)     64      
            15.78       3.75       34,127       1.14 (c)     1.20 (c)     0.95 (c)     64      
            15.58       3.47       371       1.64 (c)     1.70 (c)     0.43 (c)     64      
                                                                     
 
                                                                     
                                                                     
      0.17       15.22       22.88 (d)     165,054       1.54       1.65       1.65       129      
      0.17       14.90       21.81 (d)     2,893       2.29       2.40       0.93       129      
      0.17       14.35       21.84 (d)     18,510       2.29       2.40       0.80       129      
      0.17       15.55       23.28 (d)     30,009       1.14       1.25       1.95       129      
      0.17       15.32       22.69 (d)     493       1.64       1.75       1.51       129      
                                                                     
 
                                                                     
                                                                     
            13.18       (32.11 )     187,435       1.54 (c)     1.72 (c)     0.02 (c)     21      
            12.72       (32.16 )     3,686       2.29 (c)     2.47 (c)     (0.74 )(c)     21      
            12.40       (32.17 )     14,057       2.29 (c)     2.47 (c)     (0.74 )(c)     21      
            13.50       (32.06 )     40,837       1.14 (c)     1.32 (c)     0.54 (c)     21      
            13.28       (32.12 )     518       1.64 (c)     1.82 (c)     (0.09 )(c)     21      
                                                                     
 
                                                                     
                                                                     
      0.09       19.40       (18.37 )(d)     297,558       1.54       1.55       (1.92 )(f)     178      
      0.09       18.75       (19.01 )(d)     6,424       2.29       2.30       0.96 (f)     178      
      0.09       18.28       (18.97 )(d)     21,480       2.29       2.30       1.18 (f)     178      
      0.09       19.87       (18.03 )(d)     107,197       1.14       1.15       2.46 (f)     178      
      0.09       19.55       (18.46 )(d)     755       1.64       1.65       1.79 (f)     178      
                                                                     
     
     
            24.04       15.03       400,976       1.55       1.55       1.02       97      
            23.19       14.12       12,534       2.30       2.30       0.22       97      
            22.68       14.12       29,244       2.30       2.30       0.43       97      
            24.61       15.45       124,229       1.15       1.15       1.40       97      
            24.17       14.90       1,386       1.65       1.65       0.84       97      
                                                                     
     
     
            21.05       19.26       390,054       1.54       1.58       1.15       59      
            20.32       18.41       14,576       2.29       2.33       0.24       59      
            19.90       18.44       22,982       2.29       2.33       0.40       59      
            21.53       19.72       99,325       1.14       1.18       1.54       59      
            21.19       19.10       1,301       1.64       1.68       1.37       59      
                                                                     
     
     
            17.78       23.26       308,447       1.54       1.60       0.53       49      
            17.16       22.36       16,554       2.29       2.35       (0.27 )     49      
            16.84       22.31       17,770       2.29       2.35       (0.21 )     49      
            18.19       23.84       62,486       1.14       1.20       0.83       49      
            17.91       23.17       426       1.64       1.70       0.39       49      
                                                                     
     
     
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
55 


 

GOLDMAN SACHS INTERNATIONAL SMALL CAP FUND
 
 

Financial Highlights
Selected Data for a Share Outstanding Throughout Each Period
 
                                                 
              Income (loss) from
           
              investment operations            
                                Distributions to
     
        Net asset
                      shareholders
     
        value,
    Net
    Net realized
    Total from
    from net
     
        beginning
    investment
    and unrealized
    investment
    investment
     
    Year - Share Class   of period     income (loss)(a)     gain (loss)     operations     income      
 
 FOR THE SIX MONTHS ENDED APRIL 30, (UNAUDITED)
                                                 
                                                 
    2010 - A   $ 12.27     $ 0.02     $ 1.44     $ 1.46     $ (0.43 )    
    2010 - B     12.01       (0.03 )     1.42       1.39       (0.35 )    
    2010 - C     11.85       (0.02 )     1.39       1.37       (0.34 )    
    2010 - Institutional     12.62       0.06       1.46       1.52       (0.47 )    
    2010 - Service     12.20       0.02       1.42       1.44       (0.42 )    
                                                 
                                                 
 FOR THE FISCAL YEAR ENDED OCTOBER 31,
                                                 
                                                 
    2009 - A     9.48       0.10       3.25       3.35       (0.56 )    
    2009 - B     9.12       0.02       3.20       3.22       (0.33 )    
    2009 - C     9.06       0.01       3.17       3.18       (0.39 )    
    2009 - Institutional     9.82       0.15       3.35       3.50       (0.70 )    
    2009 - Service     9.42       0.09       3.24       3.33       (0.55 )    
                                                 
                                                 
 FOR THE PERIOD SEPTEMBER 1, 2008 TO OCTOBER 31, 2008*
                                                 
                                                 
    2008 - A     15.26       0.02       (5.80 )     (5.78 )          
    2008 - B     14.70       (d)     (5.58 )     (5.58 )          
    2008 - C     14.60       (d)     (5.54 )     (5.54 )          
    2008 - Institutional     15.81       0.03       (6.02 )     (5.99 )          
    2008 - Service     15.18       0.02       (5.78 )     (5.76 )          
                                                 
                                                 
 FOR THE FISCAL YEARS ENDED AUGUST 31,
                                                 
                                                 
    2008 - A     21.18       0.16 (e)     (5.57 )     (5.41 )     (0.51 )    
    2008 - B     20.41       0.03 (e)     (5.39 )     (5.36 )     (0.35 )    
    2008 - C     20.27       0.03 (e)     (5.35 )     (5.32 )     (0.35 )    
    2008 - Institutional     21.94       0.28 (e)     (5.78 )     (5.50 )     (0.63 )    
    2008 - Service     21.10       0.16 (e)     (5.54 )     (5.38 )     (0.54 )    
                                                 
                                                 
     
     
    2007 - A     18.16       (d)     3.21       3.21       (0.19 )    
    2007 - B     17.47       (0.15 )     3.09       2.94            
    2007 - C     17.40       (0.15 )     3.08       2.93       (0.06 )    
    2007 - Institutional     18.79       0.08       3.33       3.41       (0.26 )    
    2007 - Service     18.13       (0.01 )     3.18       3.17       (0.20 )    
                                                 
                                                 
     
     
    2006 - A     15.83       0.02       2.41       2.43       (0.10 )    
    2006 - B     15.25       (0.13 )     2.35       2.22            
    2006 - C     15.19       (0.11 )     2.32       2.21            
    2006 - Institutional     16.35       0.09       2.48       2.57       (0.13 )    
    2006 - Service     15.80       0.02       2.39       2.41       (0.08 )    
                                                 
                                                 
     
     
    2005 - A     12.00       0.03       3.88       3.91       (0.08 )    
    2005 - B     11.65       (0.09 )     3.76       3.67       (0.07 )    
    2005 - C     11.64       (0.09 )     3.75       3.66       (0.11 )    
    2005 - Institutional     12.43       0.08       4.02       4.10       (0.18 )    
    2005 - Service     12.06       0.01       3.89       3.90       (0.16 )    
                                                 
                                                 
     
     
* The Fund changed its fiscal year end from August 31 to October 31.
(a) Calculated based on the average shares outstanding methodology.
(b) Assumes investment at the net asset value at the beginning of the period, reinvestment of all 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 Fund distributions or the redemption of Fund shares. Total returns for periods less than one full year are not annualized.
(c) Annualized.
(d) Amount is less than $0.005 per share.
(e) Includes income recognized from a corporate action which amounted to $0.08 per share and 0.41% of average net assets.
(f) Total return reflects the impact of payments for regulatory settlements, amounting to $0.01 per share, received during the year and recorded as an increase to capital by the Fund. Excluding such payments, the total return would have been (26.18)%, (26.77)%, (26.73)%, (25.89)% and (26.24)%, respectively.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 56


 

GOLDMAN SACHS INTERNATIONAL SMALL CAP FUND
 
 

 
 
 
 
 
                                                                     
                                  Ratio of
                 
                Net assets,
    Ratio of
    Ratio of
    net investment
                 
    Net asset
          end of
    net expenses
    total expenses
    income (loss)
    Portfolio
           
    value, end
    Total
    period
    to average
    to average
    to average
    turnover
           
    of period     return(b)     (in 000s)     net assets     net assets     net assets     rate            
 
 
                                                                     
                                                                     
    $ 13.30       12.15 %   $ 22,595       1.60 %(c)     1.84 %(c)     0.38 %(c)     59 %            
      13.05       11.79       938       2.35 (c)     2.59 (c)     (0.40 )(c)     59              
      12.88       11.76       2,056       2.35 (c)     2.59 (c)     (0.35 )(c)     59              
      13.67       12.35       100,997       1.20 (c)     1.44 (c)     0.87 (c)     59              
      13.22       11.98       454       1.70 (c)     1.94 (c)     0.32 (c)     59              
                                                                     
                                                                     
 
                                                                     
                                                                     
      12.27       37.78       22,952       1.60       2.08       0.93       161              
      12.01       36.79       1,015       2.35       2.83       0.18       161              
      11.85       36.79       1,924       2.35       2.83       0.12       161              
      12.62       38.50       68,199       1.20       1.68       1.45       161              
      12.20       37.85       414       1.70       2.18       0.86       161              
                                                                     
                                                                     
 
                                                                     
                                                                     
      9.48       (37.88 )     21,650       1.60 (c)     2.39 (c)     0.99 (c)     24              
      9.12       (37.92 )     986       2.35 (c)     3.14 (c)     0.23 (c)     24              
      9.06       (37.95 )     2,239       2.35 (c)     3.14 (c)     0.22 (c)     24              
      9.82       (37.85 )     28,581       1.20 (c)     1.99 (c)     1.43 (c)     24              
      9.42       (37.90 )     294       1.70 (c)     2.49 (c)     0.87 (c)     24              
                                                                     
                                                                     
 
                                                                     
                                                                     
      15.26       (26.10 )(f)     39,376       1.64       1.78       0.85 (e)     117              
      14.70       (26.69 )(f)     1,862       2.39       2.53       0.14 (e)     117              
      14.60       (26.65 )(f)     3,950       2.39       2.53       0.18 (e)     117              
      15.81       (25.81 )(f)     55,901       1.24       1.38       1.42 (e)     117              
      15.18       (26.16 )(f)     454       1.74       1.88       0.84 (e)     117              
                                                                     
                                                                     
     
     
      21.18       17.73       105,435       1.65       1.77       (0.01 )     88              
      20.41       16.83       4,566       2.40       2.52       (0.74 )     88              
      20.27       16.85       8,681       2.40       2.52       (0.77 )     88              
      21.94       18.23       99,069       1.25       1.37       0.39       88              
      21.10       17.56       1,215       1.75       1.87       (0.06 )     88              
                                                                     
                                                                     
     
     
      18.16       15.39       98,861       1.64       1.79       0.10       60              
      17.47       14.56       4,615       2.39       2.54       (0.73 )     60              
      17.40       14.55       8,314       2.39       2.54       (0.66 )     60              
      18.79       15.79       92,505       1.24       1.39       0.48       60              
      18.13       15.29       750       1.74       1.89       0.10       60              
                                                                     
                                                                     
     
     
      15.83       32.70       64,169       1.64       1.95       0.17       67              
      15.25       31.63       4,885       2.39       2.70       (0.64 )     67              
      15.19       31.65       8,445       2.39       2.70       (0.63 )     67              
      16.35       33.27       66,670       1.24       1.55       0.52       67              
      15.80       32.54       217       1.74       2.05       0.06       67              
                                                                     
                                                                     
     
     
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
57 


 

GOLDMAN SACHS STRATEGIC INTERNATIONAL EQUITY FUND
 
 

Financial Highlights
Selected Data for a Share Outstanding Throughout Each Period
 
                                                                         
              Income (loss) from
    Distributions
           
              investment operations     to Shareholders            
        Net asset
    Net
                                  Increase
     
        value,
    investment
    Net realized
    Total from
    From net
    From net
          from
     
        beginning
    income
    and unrealized
    investment
    investment
    realized
    Total
    regulatory
     
    Year - Share Class   of period     (loss)(a)     gain (loss)     operations     income     gains     distributions     settlements      
 
 FOR THE SIX MONTHS ENDED APRIL 30, (UNAUDITED)
                                                                         
                                                                         
    2010 - A   $ 10.55     $ 0.04     $ 0.43     $ 0.47     $ (0.13 )   $     $ (0.13 )   $      
    2010 - B     9.46       (0.01 )     0.40       0.39       (0.05 )           (0.05 )          
    2010 - C     9.59       (d)     0.40       0.40       (0.06 )           (0.06 )          
    2010 - Institutional     11.02       0.06       0.45       0.51       (0.16 )           (0.16 )          
    2010 - IR     10.54       0.05       0.44       0.49       (0.15 )           (0.15 )          
    2010 - R     10.52       0.02       0.44       0.46       (0.14 )           (0.14 )          
                                                                         
                                                                         
 FOR THE FISCAL YEARS ENDED OCTOBER 31,
                                                                         
                                                                         
    2009 - A     9.01       0.14       1.77       1.91       (0.38 )           (0.38 )     0.01      
    2009 - B     8.08       0.07       1.58       1.65       (0.28 )           (0.28 )     0.01      
    2009 - C     8.17       0.07       1.61       1.68       (0.27 )           (0.27 )     0.01      
    2009 - Institutional     9.42       0.19       1.84       2.03       (0.44 )           (0.44 )     0.01      
    2009 - IR     9.03       0.17       1.76       1.93       (0.43 )           (0.43 )     0.01      
    2009 - R     8.99       0.08       1.80       1.88       (0.36 )           (0.36 )     0.01      
                                                                         
                                                                         
     
     
    2008 - A     27.90       0.28 (f)     (9.45 )     (9.17 )           (9.74 )     (9.74 )     0.02      
    2008 - B     26.18       0.15 (f)     (8.53 )     (8.38 )           (9.74 )     (9.74 )     0.02      
    2008 - C     26.35       0.14 (f)     (8.60 )     (8.46 )           (9.74 )     (9.74 )     0.02      
    2008 - Institutional     28.64       0.40 (f)     (9.90 )     (9.50 )           (9.74 )     (9.74 )     0.02      
    2008 - IR (Commenced November 30, 2007)     26.87       0.29 (f)     (8.41 )     (8.12 )           (9.74 )     (9.74 )     0.02      
    2008 - R (Commenced November 30, 2007)     26.87       0.23 (f)     (8.39 )     (8.16 )           (9.74 )     (9.74 )     0.02      
                                                                         
                                                                         
     
     
    2007 - A     18.93       (0.02 )     8.99       8.97                              
    2007 - B     17.88       (0.15 )     8.45       8.30                              
    2007 - C     17.99       (0.15 )     8.51       8.36                              
    2007 - Institutional     19.34       0.06       9.24       9.30                              
                                                                         
                                                                         
     
     
    2006 - A     15.24       (0.01 )     3.77       3.76       (0.07 )           (0.07 )          
    2006 - B     14.40       (0.10 )     3.58       3.48                              
    2006 - C     14.50       (0.10 )     3.59       3.49                              
    2006 - Institutional     15.56       0.09       3.83       3.92       (0.14 )           (0.14 )          
                                                                         
                                                                         
     
     
    2005 - A     12.86       0.04       2.36       2.40       (0.02 )           (0.02 )          
    2005 - B     12.23       (0.04 )     2.23       2.19       (0.02 )           (0.02 )          
    2005 - C     12.31       (0.04 )     2.25       2.21       (0.02 )           (0.02 )          
    2005 - Institutional     13.08       0.10       2.40       2.50       (0.02 )           (0.02 )          
                                                                         
                                                                         
     
     
(a)   Calculated based on the average shares outstanding methodology.
(b)   Assumes investment at the net asset value at the beginning of the period, reinvestment of all 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 Fund distributions or the redemption of Fund shares. Total returns for periods less than one full year are not annualized.
(c)   Annualized.
(d)   Amount is less than $0.005 per share.
(e)   Total return reflects the impact of payments for regulatory settlements entitled to be received during the year and recorded as an increase to capital by the Fund. Excluding such payments, the total return would have been:
                                                 
    Class A     Class B     Class C     Institutional     Class IR     Class R  
   
For the Fiscal Year Ended October 31, 2009
    22.37 %     21.40 %     21.31 %     22.76 %     22.57 %     22.02 %
For the Fiscal Year Ended October 31, 2008
    (49.92 )     (50.39 )     (50.31 )     (50.09 )     (47.93 )     (48.16 )
 
 
 
(f)  Includes income recognized from a corporate action which amounted to $0.08 per share and 0.56% of average net assets.
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 58


 

GOLDMAN SACHS STRATEGIC INTERNATIONAL EQUITY FUND
 
 

 
 
 
 
 
                                                                             
                                              Ratio of
           
                            Ratio of
          Ratio of
    net investment
           
                Net assets,
    Ratio of
    net expenses
    Ratio of
    net investment
    income (loss)
           
    Net asset
          end of
    net expenses
    (not including
    total expenses
    income (loss)
    (not including
    Portfolio
     
    value, end
    Total
    period
    to average
    fees paid
    to average
    to average
    fees paid
    turnover
     
    of period     return(b)     (in 000s)     net assets     indirectly)     net assets     net assets     indirectly)     rate      
 
 
                                                                             
                                                                             
    $ 10.89       4.48 %   $ 58,733       1.45 %(c)     1.45 %(c)     1.69 %(c)     0.68 %(c)     0.68 %(c)     58 %    
      9.80       4.11       7,634       2.20 (c)     2.20 (c)     2.44 (c)     (0.10 )(c)     (0.10 )(c)     58      
      9.93       4.14       9,295       2.20 (c)     2.20 (c)     2.44 (c)     (0.07 )(c)     (0.07 )(c)     58      
      11.37       4.68       5,750       1.05 (c)     1.05 (c)     1.29 (c)     1.05 (c)     1.05 (c)     58      
      10.88       4.66       7       1.20 (c)     1.20 (c)     1.44 (c)     0.96 (c)     0.96 (c)     58      
      10.84       4.36       34       1.70 (c)     1.70 (c)     1.94 (c)     0.44 (c)     0.44 (c)     58      
                                                                             
                                                                             
 
                                                                             
                                                                             
      10.55       22.50 (e)     55,454       1.45       1.45       1.98       1.52       1.52       133      
      9.46       21.58 (e)     8,958       2.20       2.20       2.73       0.93       0.93       133      
      9.59       21.47 (e)     9,520       2.20       2.20       2.73       0.92       0.92       133      
      11.02       22.91 (e)     6,408       1.05       1.05       1.58       2.02       2.02       133      
      10.54       22.71 (e)     6       1.20       1.20       1.73       1.88       1.88       133      
      10.52       22.07 (e)     33       1.70       1.70       2.23       0.81       0.81       133      
                                                                             
                                                                             
 
 
      9.01       (49.64 )(e)     38,194       1.40       1.40       1.73       1.80 (f)     1.80 (f)     108      
      8.08       (50.09 )(e)     10,697       2.15       2.15       2.48       1.01 (f)     1.01 (f)     108      
      8.17       (50.00 )(e)     10,577       2.15       2.15       2.48       1.00 (f)     1.00 (f)     108      
      9.42       (49.45 )(e)     5,499       1.00       1.00       1.33       2.46 (f)     2.46 (f)     108      
      9.03       (47.70 )(e)     5       1.15 (c)     1.15 (c)     1.48 (c)     2.18 (c)(f)     2.18 (c)(f)     108      
      8.99       (47.93 )(e)     5       1.65 (c)     1.65 (c)     1.98 (c)     1.68 (c)(f)     1.68 (c)(f)     108      
                                                                             
                                                                             
 
 
      27.90       49.69       101,641       1.69       1.71       1.85       (0.09 )     (0.11 )     135      
      26.18       48.67       31,881       2.31       2.33       2.48       (0.69 )     (0.71 )     135      
      26.35       48.70       34,984       2.31       2.34       2.46       (0.72 )     (0.74 )     135      
      28.64       50.34       27,498       1.29       1.31       1.41       0.27       (0.25 )     135      
                                                                             
                                                                             
 
 
      18.93       24.79       87,839       1.75       1.85       1.85       (0.04 )     (0.15 )     74      
      17.88       24.17       27,959       2.30       2.40       2.40       (0.56 )     (0.70 )     74      
      17.99       24.07       37,889       2.30       2.40       2.40       (0.58 )     (0.68 )     74      
      19.34       25.35       34,332       1.30       1.40       1.40       0.48       0.39       74      
                                                                             
                                                                             
 
 
      15.24       18.59       35,599       1.74       1.85       2.19       0.25       0.14       136      
      14.40       17.91       19,327       2.29       2.40       2.74       (0.30 )     (0.41 )     136      
      14.50       17.96       10,091       2.29       2.40       2.74       (0.30 )     (0.41 )     136      
      15.56       19.12       5,937       1.29       1.40       1.74       0.70       0.59       136      
                                                                             
                                                                             
 
 
 
 
 
The accompanying notes are an integral part of these financial statements. 
 
59 


 

GOLDMAN SACHS FUNDAMENTAL INTERNATIONAL EQUITY FUNDS
 
 
Fund Expenses — Six Month Period Ended April 30, 2010 (Unaudited)
 
As a shareholder of Class A, Class B, Class C, Institutional, Service, Class IR or Class R Shares of a Fund, you incur two types of costs: (1) transaction costs, including sales charges on purchase payments (with respect to Class A Shares), contingent deferred sales charges on redemptions (with respect to Class B and Class C Shares), and redemption fees (if any); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees (with respect to Class A, Class B and Class C Shares); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in Class A, Class B, Class C, Institutional, Service, Class IR or Class R Shares of the Funds 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 November 1, 2009 through April 30, 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 Funds’ actual net expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ 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 Funds 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. 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.
 
                                                                                           
      Concentrated International Equity Fund     International Small Cap Fund     Strategic International Equity Fund
                  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     11/01/09     4/30/10     4/30/10*     11/01/09     4/30/10     4/30/10*     11/01/09     4/30/10     4/30/10*
Class A
                                                                                         
Actual
    $ 1,000       $ 1,034.50       $ 7.77       $ 1,000       $ 1,121.50       $ 8.42       $ 1,000       $ 1,044.80       $ 7.35  
Hypothetical 5% return
      1,000         1,017.16 +       7.70         1,000         1,016.86 +       8.00         1,000         1,017.60 +       7.25  
 
Class B
                                                                                         
Actual
      1,000         1,031.40         11.53         1,000         1,117.90         12.34         1,000         1,041.10         11.13  
Hypothetical 5% return
      1,000         1,013.44 +       11.43         1,000         1,013.14 +       11.73         1,000         1,013.88 +       10.99  
 
Class C
                                                                                         
Actual
      1,000         1,031.60         11.54         1,000         1,117.60         12.34         1,000         1,041.40         11.14  
Hypothetical 5% return
      1,000         1,013.44 +       11.43         1,000         1,013.14 +       11.73         1,000         1,013.88 +       10.99  
 
Institutional
                                                                                         
Actual
      1,000         1,037.50         5.76         1,000         1,123.50         6.32         1,000         1,046.80         5.33  
Hypothetical 5% return
      1,000         1,019.14 +       5.71         1,000         1,018.84 +       6.01         1,000         1,019.59 +       5.26  
 
Service
                                                                                         
Actual
      1,000         1,034.70         8.27         1,000         1,119.80         8.94         N/A         N/A         N/A  
Hypothetical 5% return
      1,000         1,016.66 +       8.20         1,000         1,016.36 +       8.50         N/A         N/A         N/A  
 
Class IR
                                                                                         
Actual
      N/A         N/A         N/A         N/A         N/A         N/A         1,000         1,046.60         6.09  
Hypothetical 5% return
      N/A         N/A         N/A         N/A         N/A         N/A         1,000         1,018.84 +       6.01  
 
Class R
                                                                                         
Actual
      N/A         N/A         N/A         N/A         N/A         N/A         1,000         1,043.60         8.61  
Hypothetical 5% return
      N/A         N/A         N/A         N/A         N/A         N/A         1,000         1,016.36 +       8.50  
 
*   Expenses for each share class are calculated using each Fund’s annualized net expense ratio for each class, which represents the ongoing expenses as a percentage of net assets for the six months ended April 30, 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:
 
                                                         
Fund   Class A   Class B   Class C   Institutional   Service   Class IR   Class R
 
Concentrated International Equity
    1.54 %     2.29 %     2.29 %     1.14 %     1.64 %     N/A       N/A  
International Small Cap
    1.60       2.35       2.35       1.20       1.70       N/A       N/A  
Strategic International Equity
    1.45       2.20       2.20       1.05       N/A       1.20 %     1.70 %
 
 
Hypothetical expenses are based on each Fund’s actual annualized net expense ratios and an assumed rate of return of 5% per year before expenses.
 
 

60


 

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 $713.9 billion in assets under management as of March 31, 2010 — 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
 
(FUND NAME RISK 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 Portfolio
n Tax Advantaged Global Equity
Portfolio
 
 
 
1 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
INTERNATIONAL
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
 
A summary prospectus and a Prospectus for the Funds containing more 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). Please consider a Fund’s objectives, risks, and charges and expenses, and read the summary prospectus and/or the Prospectus carefully before investing. The summary prospectus and the Prospectus contains this and other information about the Funds.
 
The reports concerning the Funds included in this shareholder report may contain certain forward-looking statements about the factors that may affect the performance of the Funds in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Funds, 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 Funds. 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.
 
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how a Fund 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 Web site at http://www.sec.gov.
 
The Funds 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 Funds’ Forms N-Q will become available on the SEC’s website at http://www.sec.gov within 60 days after the Funds’ first and third fiscal quarters. When available, the Funds’ 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 Fund’s entire investment portfolio, which may change at any time. Fund 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 summary prospectus or Prospectus for the Funds. Please consider a Fund’s objectives, risks, and charges and expenses, and read the summary prospectus and/or Prospectus carefully before investing. The summary prospectus and Prospectus contain this and other information about the Funds.
 
Copyright 2010 Goldman, Sachs & Co. All rights reserved. 37238.MF.TMPL EQINTSAR10 / 22.6K / 6-10


 

     
ITEM 2.   CODE OF ETHICS.
       
  The information required by this Item is only required in an annual report on this Form N-CSR.
     
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.
     
  (a)   The Schedule of Investments is included as part of the Semi-Annual Report to Stockholders filed under Item 1 of this Form N-CSR.
     
  (b)   Not applicable.
     
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)     Not applicable.
     
  (a)(2)   Exhibit 99.CERT Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.
     
  (a)(3)     Not applicable.
     
  (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: June 30, 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: June 30, 2010    
             
        /s/ George F. Travers    
       
   
        By: George F. Travers    
        Chief Financial Officer of    
        Goldman Sachs Trust    
             
        Date: June 30, 2010    

  EX-99.CERT 2 y84745exv99wcert.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: June 30, 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: June 30, 2010

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

  EX-99.906CERT 3 y84745exv99w906cert.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 April 30, 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: June 30, 2010   Date: June 30, 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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