GOLDMAN SACHS TRUST
 
                       GOLDMAN SACHS MONEY MARKET FUNDS
 
 ILA, ILA CLASS B, ILA CLASS C, ILA ADMINISTRATION AND ILA SERVICE UNITS; ILA
CASH MANAGEMENT SHARES; FST, FST PREFERRED, FST SERVICE AND FST ADMINISTRATION
                                    SHARES
 
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     SUPPLEMENT DATED SEPTEMBER 1, 1998 TO PROSPECTUSES DATED MAY 1, 1998
 
PURCHASE OF SHARES (UNITS)--ALL ILA AND FST CLASSES
 
  The description of share (unit) purchases in the ILA and FST Prospectuses
  is modified as follows:
 
    Shares (units) may be purchased on any Business Day at the net asset
    value next determined after receipt and acceptance of a purchase order
    in proper form by the Trust or its authorized designee. Shares (units)
    begin earning dividends after an order is accepted and payment in
    federal funds is received by the Trust.
 
TRANSFER AGENCY FEES--ALL ILA CLASSES
 
  The transfer agency fee payable by each ILA share class is equal, on an
  annual basis, to 0.04% of the average daily net assets of the applicable
  class.
 
DISTRIBUTION AND SERVICE PLANS--ILA CLASS B AND CLASS C UNITS ONLY
 
  The Distribution Plans and Authorized Dealer Service Plans for ILA Class B
  and Class C Units of the ILA Prime Obligations Portfolio have been combined
  into single Distribution and Service Plans. The provisions of the Plans
  have not been materially changed, and the fees payable under the Plans are
  the same as stated in the Prospectus.
 
MANAGEMENT--THE ADVISER
 
  The Goldman Sachs Group, L.P., which controls the Adviser, has announced
  that it will pursue an initial public offering of the firm during the
  fourth quarter of 1998; if the public offering is consummated, the Goldman
  Sachs Group, L.P. will merge into the new public company, which will be
  called The Goldman Sachs Group, Inc.