-----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, T7pesLzj9q1W/Wzu1YJPDcnshmclo7q9mQ/f3WFKqA3Zz6yEvkpUGCiLJpxyZIJ3 oi32AUbI5H/5/r5WB6ijYA== 0000950130-99-001201.txt : 19990305 0000950130-99-001201.hdr.sgml : 19990305 ACCESSION NUMBER: 0000950130-99-001201 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990304 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GOLDMAN SACHS TRUST CENTRAL INDEX KEY: 0000822977 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-05349 FILM NUMBER: 99557168 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 N-30D 1 GOLDMAN SACHS TRUST FST A/R - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Goldman Sachs Trust Financial Square Funds . Prime Obligations Fund . Money Market Fund . Premium Money Market Fund . Treasury Obligations Fund . Treasury Instruments Fund . Government Fund . Federal Fund . Tax-Free Money Market Fund ANNUAL REPORT [LOGO] Goldman December 31, 1998 Sachs - -------------------------------------------------------------------------------- Letter to Shareholders - --------------------------------------- --------------------------------------- Dear Shareholders: We welcome this opportunity to provide you with a summary of the trends and key events that affected the economy and the Goldman Sachs Money Market Trust/Financial Square Funds in 1998. It was another strong year for the funds, during which all of them outperformed their respective IBC Financial Data, Inc. averages. Net assets in the Financial Square Funds totaled $27.5 billion as of December 31, 1998. The Economy In Review Despite a slight tempering due to soft employment numbers, the U.S. economy continued to see strong growth for most of 1998. This growth, combined with continued uncertainty about the impact of Asian instability on the U.S. economy, kept the Federal Reserve in a wait-and-see mode for the first nine months of the year. On September 29th, in the wake of increasing global market turmoil, the Federal Reserve Board cut the federal fund's target rate by 25 basis points, to 5.25%. As increasing illiquidity concerns in the market became more severe, the Fed followed up with two more surprise rate cuts, easing the target rate and the discount rate by another 50 basis points. The Fed's moves were a strong signal that the monetary authorities were prepared to do whatever was necessary to provide liquidity and to support the economy against the potential of a substantial economic slowdown in 1999. At period end, while consumer spending remained strong, the manufacturing side of the economy appeared to weaken because of a trade drag and a slowdown in capital spending. However, based on signs of non-inflationary growth in the areas of consumer spending, new home sales and strong third quarter gross domestic product (GDP), the general consensus is that any further easing by the Fed will come later, rather than sooner. Credit Year 1998: A Year of Crisis With a Hopeful Ending Domestic credit quality continued its strong positive trend for the first six months of 1998. Mergers and acquisitions were at an all time high. U.S. banks remained strong, well capitalized and provisioned, with diversified operations. The stock market continued its climb and American consumers were spending more than they were earning. The shocks of the Russian default in August and the near collapse of Long Term Capital Management (LTCM) caused severe liquidity problems and a difficult trading environment, as well as a major sell-off in the stock market. Calm was restored by the rescue of LTCM and the Fed's lowering of interest rates three times in seven weeks. A newly risk averse investor moved funds to safer, more liquid credits. The enthusiasm for globalization was temporarily curbed, as domestic production was suppressed in response to the Asian crisis and corporate profit gains for the year were generally mixed. The international credit environment in 1998 saw the Asian situation explode into a full-blown global crisis that adversely affected markets around the world. The default and devaluation of Russia in August came after an already painful several months of recession and restructuring in Asia. This pain was exacerbated by Japan's continued slow economic deterioration, which cast a shadow over the entire region. The unprecedented market volatility that followed Russia's default took months to dissipate, and only after a more committed response by the U.S. government to the crisis. By the end of the year, however, trends were much more positive. The reforming Asian economies showed notable progress, with signs of a return to economic growth in 1999. More significant, however, was the successful launch of the euro. Ongoing policy convergence and political resolution served to create the world's first regional currency with nary a ripple in the markets. In fact, with the U.S. economy seemingly impervious to difficulties elsewhere, global markets quickly rebounded to close the year on a decidedly positive note. - --------------------------------------- --------------------------------------- 1 - -------------------------------------------------------------------------------- - --------------------------------------- --------------------------------------- Although the U.S. economy remains favorable, the challenges of global volatility continue to concern us. The Goldman Sachs Credit Department, with analysts based in London, Tokyo, Frankfurt and New York, as well as extensive technological assets and credit expertise, will continue to anticipate and monitor global developments and apply its conservative credit standards to the money market portfolios. Strategy Taxable. For most of the period, a "flight to quality" resulting from the ongoing Asian economic crisis rendered the short end of the yield curve expensive. In view of this, the Funds maintained a neutral stance by buying on market dips and "aging in" when levels got expensive. However, we extended the weighted average maturity (WAM) ranges from neutral to slightly long as the Fed began its series of easings in late September in response to market liquidity. We continued to maintain a barbell structure by holding significant liquidity in anticipation of year-end outflows, and targeted longer dated maturities to enhance performance in a declining rate environment. Tax-Exempt. Early in the period, given the fact that we no longer foresaw a near-term Fed easing and in preparation for the seasonally short supply of municipal issuance in January, we increased the funds' WAMs to the 40- to 50- day range. This decision helped keep the funds' yields competitive during this period of high cash inflows and high demand for municipal securities. In March, we shortened the WAMs of the funds to the 30- to 35-day range, seeking to build liquidity as the April 15th tax deadline approached. This move helped us to fund tax-time redemptions. In August, when seasonal issuance was strong and there was less demand in the tax-exempt market in contrast to the "flight to quality" in the Treasury market, we extended the funds' WAMs to the 40-day range. At period end, after a brief period during which the funds' WAMs were brought into a neutral range, we extended the WAMs in anticipation of technically driven lower yields (due to inflows from the reinvestment of maturity proceeds, coupled with a seasonal scarcity of issuance). Summary for Financial Square Funds Institutional Shares* as of 12/31/98
SEC SEC 1-Mo. 7-Day 7-Day Simple Weighted Avg. Financial Square Current Effective Average Maturity Funds Yield Yield Yield (days) ---------------- ------- --------- ------- ------------- Prime Obligations.... 5.09% 5.22% 5.04% 39 Money Market.... 5.09 5.22 5.04 51 Premium Money Market.. 5.08 5.21 5.05 31 Treasury Obligations.... 4.77 4.82 4.74 43 Treasury Instruments.... 4.26 4.33 4.26 31 Government...... 5.01 5.13 4.92 46 Federal......... 4.97 5.09 4.95 46 Tax-Free Money Market.. 3.51 3.58 3.12 45
*Financial Square Funds offer four separate classes of shares (Institutional, Preferred, Administration and Service), each of which is subject to different fees and expenses that affect performance and entitle shareholders to different services. The Preferred, Administration and Service shares offer financial institutions the opportunity to receive a fee for providing administrative support services. The Preferred shares pay 0.10%, Administration shares pay 0.25%, and the Service shares pay 0.50%. If these fees were reflected in the above performance, performance would be reduced. Past performance is no guarantee of future results. Yields will vary. An investment in any one of the Financial Square Funds is neither insured nor guaranteed by the U.S. Government nor is there any assurance that the Funds will be able to maintain a stable net asset value of $1.00 per share. More complete information, including management fees and expenses, is included in the funds' prospectus or may be obtained by calling Goldman Sachs Funds at 1-800-621-2550. Outlook and Strategies for 1999 With the financing pressure of year-end behind institutional investors, we are looking to extend the funds' weighted average maturities somewhat as we see opportunities on the yield curve. While there are a - --------------------------------------- --------------------------------------- 2 - -------------------------------------------------------------------------------- Letter to Shareholders (continued) - --------------------------------------- --------------------------------------- variety of opinions as to when the Fed will move, based on current signs of non-inflationary growth in areas of consumer spending, new home sales and fourth quarter GDP, most economists anticipate that easing will come later rather than sooner. Goldman Sachs economists' 1999 outlook anticipates a 50 basis point cumulative ease in the second half of the year. In closing, we thank you for your support and for making 1998 a year of record assets for the Financial Square money market funds. As in the past, we will continue to look for additional ways to improve our services, while seeking to provide you with competitive performance. We welcome your suggestions and questions, and look forward to another productive year in 1999. Goldman Sachs Money Market Management Team January 29, 1999 - --------------------------------------- --------------------------------------- 3 Statement of Investments - -------------------------------------------------------------------------------- Financial Square Prime Obligations Fund December 31, 1998 - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- Commercial Paper and Corporate Obligations--39.3% Agricultural Services Cargill, Inc. $ 25,000,000 5.04% 04/14/99 $ 24,639,500 Bank Holding Companies BankAmerica Corp. 50,000,000 5.16 01/15/99 49,899,667 40,000,000 5.17 01/22/99 39,879,367 50,000,000 5.12 01/25/99 49,829,333 25,000,000 5.04 05/12/99 24,541,500 Business Credit Institutions CIT Group Holdings, Inc. 50,000,000 5.05 03/30/99 49,382,778 17,000,000 6.38 05/21/99 17,077,237 Ford Motor Credit Corp. 17,500,000 5.37 02/19/99 17,372,090 100,000,000 4.90 05/24/99 98,054,803 General Electric Capital Corp. 75,000,000 5.36 02/16/99 74,486,333 100,000,000 5.35 03/09/99 99,004,306 10,000,000 4.94 04/23/99 9,846,311 Commercial Banks CP Trust Certificates Series 1996-1 72,250,000 4.95 03/30/99 72,250,000 Consumer Products Eastman Kodak Corp. 25,000,000 5.20 02/01/99 24,888,056 25,000,000 5.20 02/03/99 24,880,833 25,000,000 5.20 02/04/99 24,877,222 25,000,000 5.20 02/05/99 24,873,611 Information Management First Data Corp. 25,000,000 5.37 02/02/99 24,880,667 Receivable/Asset Financing Asset Portfolio Funding 75,000,000 5.01 02/23/99 74,446,813 48,302,000 5.20 05/13/99 47,381,042 Ciesco, Inc. 100,000,000 5.30 02/05/99 99,484,722 Corporate Receivables Corp. 85,000,000 5.22 01/13/99 84,852,100 40,000,000 5.50 01/12/99 39,932,778 Dakota Certificates of Standard Credit Card Master Trust 80,000,000 5.25 01/14/99 79,848,333 25,000,000 5.25 01/20/99 24,930,729 50,000,000 5.27 02/17/99 49,655,986
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- Commercial Paper and Corporate Obligations (continued) Receivable/Asset Financing (continued) Dakota Certificates of Standard Credit Card Master Trust (continued) $ 25,000,000 5.30% 02/17/99 $ 24,827,014 25,000,000 5.22 03/04/99 24,775,250 Delaware Funding Corp. 75,000,000 5.30 01/13/99 74,867,500 23,805,000 5.15 01/15/99 23,757,324 Edison Asset Securitization Corp. 25,000,000 5.13 01/29/99 24,900,250 28,969,000 5.33 02/12/99 28,788,861 100,000,000 5.14 02/26/99 99,200,443 35,000,000 5.19 03/12/99 34,646,792 25,000,000 4.90 03/30/99 24,700,556 25,000,000 5.10 04/30/99 24,578,542 Falcon Asset Securitization Corp. 40,000,000 5.15 01/15/99 39,919,889 25,000,000 5.15 01/20/99 24,932,049 28,935,000 5.29 02/04/99 28,790,438 17,650,000 5.25 02/09/99 17,549,616 66,925,000 5.11 03/22/99 66,165,029 International Securitization Corp. 12,310,000 5.13 03/12/99 12,187,208 Park Avenue Receivables Corp. 16,539,000 5.75 01/22/99 16,483,525 Prudential Financing Corp. 30,000,000 5.39 01/25/99 29,892,200 Receivables Capital Corp. 26,178,000 5.50 01/04/99 26,166,002 50,153,000 5.15 01/21/99 50,009,507 Riverwoods Funding Corp. 50,000,000 5.05 02/25/99 49,614,236 Variable Funding Capital Corp. 25,000,000 5.21 01/05/99 24,985,528 25,000,000 5.26 01/22/99 24,923,292 WCP Funding Corp. 75,000,000 5.53 01/15/99 74,838,708 21,694,000 5.40 01/27/99 21,609,393 50,000,000 5.27 02/17/99 49,655,986 Security and Commodity Brokers, Dealers and Services J.P. Morgan Securities, Inc. 60,000,000 5.12 01/19/99 59,846,400 30,000,000 5.08 02/26/99 29,762,933 50,000,000 5.75 03/10/99 50,000,000 Morgan Stanley Dean Witter & Co. 60,000,000 5.38 02/19/99 59,560,633 25,000,000 5.35 02/23/99 24,803,090 10,000,000 5.20 03/24/99 9,881,556
- --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 4 Statement of Investments - -------------------------------------------------------------------------------- Financial Square Prime Obligations Fund (continued) December 31, 1998 - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ------------------------------------------------------------------------------------------------ Commercial Paper and Corporate Obligations (continued) Security and Commodity Brokers, Dealers and Services (continued) Salomon Smith Barney Holdings, Inc. $ 50,000,000 5.40% 01/12/99 $ 49,917,500 30,000,000 5.40 01/19/99 29,919,000 50,000,000 5.40 02/23/99 49,602,500 50,000,000 5.20 03/12/99 49,494,444 - ------------------------------------------------------------------------------------------------ Total Commercial Paper and Corporate Obligations $2,606,749,311 - ------------------------------------------------------------------------------------------------ Bank Notes--6.4% BankBoston, N.A. $ 40,000,000 5.20% 04/01/99 $ 40,000,000 50,000,000 5.74 04/15/99 49,994,542 20,000,000 5.15 05/04/99 20,000,000 First Tennessee Bank, N.A. 40,000,000 5.65 03/02/99 39,996,844 50,000,000 5.82 04/30/99 49,990,641 First Union National Bank 75,000,000 5.12 03/29/99 75,000,000 50,000,000 5.06 05/19/99 50,000,000 NationsBank Corp. 25,000,000 4.96 11/18/99 24,995,756 Norwest Financial 11,000,000 6.68 09/15/99 11,113,844 PNC Bank, N.A. 35,000,000 5.71 04/26/99 34,993,664 Wachovia Bank 25,000,000 4.98 05/25/99 25,000,000 - ------------------------------------------------------------------------------------------------ Total Bank Notes $ 421,085,291 - ------------------------------------------------------------------------------------------------ Certificates of Deposit--7.6% American Express Centurion Bank $ 50,000,000 5.26% 01/12/99 $ 50,000,000 Bank of America NT & SA 55,250,000 5.63 02/26/99 55,245,125 Chase Manhattan Bank 100,000,000 5.06 05/12/99 100,007,399 Crestar Bank 100,000,000 5.42 01/07/99 100,000,000 Mellon Bank, N.A. 100,000,000 5.00 02/17/99 100,000,000 Old Kent Bank & Trust Co. 100,000,000 5.06 05/10/99 100,000,000 - ------------------------------------------------------------------------------------------------ Total Certificates of Deposit $ 505,252,524 - ------------------------------------------------------------------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- Taxable Municipal Notes--0.2% Ocean Spray Cranberries, Inc. $ 15,000,000 5.63% 01/07/99 $ 15,000,000 - ----------------------------------------------------------------------------------------------- Total Taxable Municipal Notes $ 15,000,000 - ----------------------------------------------------------------------------------------------- Variable Rate Obligations(a)--32.2% Allmerica Funding $ 25,000,000 5.45% 02/08/99 $ 25,000,000 American Express Centurion Bank 50,000,000 5.52 01/25/99 50,000,000 Bank One, N.A. 160,000,000 5.49 01/04/99 159,976,463 Caterpillar Financial Services Corp. 50,000,000 5.62 01/26/99 50,005,314 Comerica Bank Detroit 50,000,000 5.42 01/19/99 49,983,898 150,000,000 5.11 03/10/99 149,954,840 First National Bank of Chicago 40,000,000 5.48 01/04/99 39,987,720 40,000,000 5.42 01/14/99 39,987,244 First Tennessee Bank, N.A. 30,000,000 5.07 01/25/99 29,995,489 First Union Corp. 40,000,000 5.52 01/25/99 40,000,000 25,000,000 5.57 01/28/99 25,000,000 First U.S.A. Bank 10,000,000 5.62 01/20/99 10,029,496 15,000,000 5.52 02/01/99 15,004,382 General Electric Capital Corp. 20,000,000 5.32 02/17/99 20,000,000 45,000,000 5.18 03/08/99 45,000,000 General Motors Acceptance Corp. 25,000,000 5.36 03/01/99 25,007,694 IBM Corp. 50,000,000 5.23 02/12/99 49,968,362 J.P. Morgan Securities, Inc. 30,000,000 5.21 01/04/99 29,997,732 50,000,000 5.48 01/07/99 49,985,055 Keybank, N.A. 100,000,000 5.13 02/22/99 99,992,398 10,000,000 5.18 02/22/99 9,994,987 Merrill Lynch & Co., Inc. 35,000,000 5.58 01/12/99 35,000,000 40,000,000 5.48 01/13/99 39,997,545 25,000,000 5.57 01/25/99 25,000,000 28,250,000 5.47 01/29/99 28,277,808 25,000,000 5.57 01/29/99 25,000,000
- --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 5 - -------------------------------------------------------------------------------- - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ------------------------------------------------------------------------------------------------ Variable Rate Obligations (continued) Merrill Lynch & Co., Inc. (continued) $ 30,000,000 5.18% 03/01/99 $ 29,998,003 50,000,000 5.14 03/16/99 50,000,000 Monumental Life Insurance Co. 55,000,000 5.72 02/01/99 55,000,000 Morgan Stanley Dean Witter & Co. 80,000,000 5.58 01/19/99 80,000,000 National Rural Utilities Corp. 25,000,000 5.17 02/25/99 25,000,000 New York Life Insurance Co. 25,000,000 5.21 01/07/99 25,000,000 40,000,000 5.31 01/07/99 40,000,000 Old Kent Bank & Trust Co. 35,000,000 5.10 02/01/99 34,994,418 Pacific Mutual Life Insurance Co. 50,000,000 4.98 02/01/99 50,000,000 Pepsico Inc. 75,000,000 5.21 02/19/99 74,946,672 PNC Bank, N.A. 100,000,000 5.49 01/04/99 99,963,281 75,000,000 5.50 01/27/99 74,968,099 Seattle Washington Taxable Series 1994 25,000,000 5.58 02/01/99 25,000,000 SMM Trust Series 1998-A 35,000,000 5.32 03/16/99 35,000,000 Southtrust Bank of Alabama, N.A. 100,000,000 5.42 01/14/99 99,971,298 40,000,000 5.08 01/21/99 39,994,093 Texas State Taxable Veterans Series 1996 A 14,255,000 5.58 02/01/99 14,255,000 U.S. Bank, N.A. 50,000,000 5.50 01/08/99 49,992,464 65,000,000 5.43 01/20/99 64,982,525 - ------------------------------------------------------------------------------------------------ Total Variable Rate Obligations $2,137,212,280 - ------------------------------------------------------------------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ---------------------------------------------------------------------------------------------- Repurchase Agreements--14.3% Bear Stearns Companies, Inc.(b) $ 50,000,000 5.15% 01/04/99 $ 50,000,000 Joint Repurchase Agreement Account 201,300,000 4.82 01/04/99 201,300,000 Joint Repurchase Agreement Account II 700,000,000 4.89 01/04/99 700,000,000 - ---------------------------------------------------------------------------------------------- Total Repurchase Agreements $ 951,300,000 - ---------------------------------------------------------------------------------------------- Total Investments $6,636,599,406(c)
- -------------------------------------------------------------------------------- (a) Variable rate security-base index is either U.S. Treasury Bill, LIBOR, one month commercial paper, Federal Funds, or Prime lending rate. (b) At December 31, 1998, this agreement was fully collateralized by Federal Agency obligations. (c) The amount stated also represents aggregate cost for federal income tax purposes. Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted notes, or, for floating rate securities, the current reset rate, which is based upon current interest rate indices. Maturity dates represent either the stated date on the security, the next interest reset date for floating rate securities, or the prerefunded date for those types of securities. The percentages shown for each investment category reflect the value of investments in that category as a percentage of total net assets. - --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 6 Statement of Investments - -------------------------------------------------------------------------------- Financial Square Money Market Fund December 31, 1998 - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ------------------------------------------------------------------------------------------------ Commercial Paper and Corporate Obligations--42.0% Agency/Government Province of Quebec $ 35,000,000 5.01% 05/07/99 $ 34,386,275 Bank Holding Companies Abbey National Treasury Services 35,000,000 4.92 02/19/99 34,765,855 ABN/AMRO Bank 35,000,000 4.89 04/30/99 34,434,254 Banca CRT Financial Corp. 10,621,000 5.41 02/08/99 10,560,348 15,000,000 5.41 02/17/99 14,894,054 20,500,000 5.40 03/01/99 20,318,575 BankAmerica Corp. 20,000,000 5.17 01/22/99 19,939,683 40,000,000 5.04 05/12/99 39,266,400 Banque Et Caisse Epargne 50,000,000 5.01 03/29/99 49,394,625 C.S. First Boston Corp. 30,000,000 5.33 02/10/99 29,822,333 70,000,000 5.02 02/23/99 69,482,661 IMI Funding Corp., U.S.A. 25,000,000 5.03 03/15/99 24,745,007 San Paolo U.S. Finance Co. 25,000,000 5.31 03/01/99 24,782,438 UBS Finance, Inc. 70,000,000 4.90 05/20/99 68,676,450 41,000,000 4.93 05/20/99 40,219,554 Business Credit Institutions CIT Group Holdings, Inc. 30,000,000 5.05 03/29/99 29,633,875 General Electric Capital Corp. 75,000,000 5.36 02/16/99 74,489,528 Chemicals Henkel Corp. 21,000,000 5.31 02/26/99 20,826,703 Commercial Banks CP Trust Certificates Series 1996-1 51,000,000 4.95 03/30/99 51,000,000 CP Trust Certificates Series 1996-2 75,000,000 5.03 12/28/99 75,000,000 Mortgage Banking Northern Rock PLC 50,000,000 5.12 02/01/99 49,779,556 5,000,000 5.12 02/02/99 4,977,244 22,214,000 5.17 03/29/99 21,936,455
Principal Interest Maturity Amortized Amount Rate Date Cost - ------------------------------------------------------------------------------------------------ Commercial Paper and Corporate Obligations (continued) Northern Rock PLC (continued) $ 35,000,000 5.00% 04/27/99 $ 34,436,111 50,000,000 4.91 05/20/99 49,053,063 50,000,000 4.93 05/27/99 49,000,306 Motor Vehicles and Equipment DaimlerChrysler N.A. Holding Corp. 35,000,000 4.98 05/17/99 34,341,533 Receivable/Asset Financing Asset Securitization Corp. 50,000,000 5.15 03/12/99 49,499,306 Atlantis One Funding 18,500,000 5.20 03/24/99 18,280,878 38,526,000 5.17 05/12/99 37,801,208 Beta Finance 64,500,000 5.12 03/22/99 63,766,133 Cargill Global Funding 15,000,000 5.37 02/23/99 14,881,413 CC USA, Inc. 30,000,000 5.15 01/15/99 29,939,917 15,000,000 5.40 01/27/99 14,941,500 Ciesco, Inc. 50,000,000 5.30 02/05/99 49,742,361 Corporate Receivables Corp. 100,000,000 5.25 02/18/99 99,300,000 Dakota Certificates of Standard Credit Card Master Trust 25,000,000 5.30 02/17/99 24,827,014 Delaware Funding Corp. 50,000,000 5.22 01/22/99 49,847,750 Edison Asset Securitization Corp. 40,000,000 5.15 01/13/99 39,931,333 27,060,000 5.13 01/29/99 26,952,031 100,000,000 5.14 02/26/99 99,200,443 50,000,000 5.00 03/12/99 49,513,889 15,000,000 5.19 03/12/99 14,848,625 Eureka Securities 25,000,000 5.32 01/13/99 24,955,667 Falcon Asset Securitization Corp. 25,000,000 5.25 02/09/99 24,857,813 41,540,000 5.25 02/19/99 41,243,162 Four Winds Funding 47,000,000 5.25 01/14/99 46,910,896 Rose One Plus 57,980,000 5.30 01/07/99 57,928,784 24,462,000 5.31 01/08/99 24,436,743 25,000,000 5.30 01/19/99 24,933,750
- --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 7 - -------------------------------------------------------------------------------- - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- Commercial Paper and Corporate Obligations (continued) Receivable/Asset Financing (continued) Variable Funding Capital Corp. $50,000,000 5.21% 01/05/99 $ 49,971,056 25,000,000 5.26 01/22/99 24,923,292 Windmill Funding 25,000,000 5.54 01/06/99 24,980,764 65,000,000 5.27 01/15/99 64,866,786 35,000,000 5.30 01/15/99 34,927,861 25,000,000 5.35 01/15/99 24,947,986 75,000,000 5.27 02/19/99 74,462,021 Security and Commodity Brokers, Dealers and Services J.P. Morgan Securities, Inc. 45,000,000 5.75 03/10/99 45,000,000 40,000,000 5.02 04/21/99 39,386,444 Morgan Stanley Dean Witter & Co. 35,000,000 5.35 02/23/99 34,724,326 50,000,000 5.20 03/24/99 49,407,778 Salomon Smith Barney Holdings, Inc. 25,000,000 5.40 01/19/99 24,932,500 25,000,000 5.40 02/23/99 24,801,250 55,000,000 5.20 03/12/99 54,443,889 - ----------------------------------------------------------------------------------------------- Total Commercial Paper and Corporate Obligations $2,510,479,455 - ----------------------------------------------------------------------------------------------- Bank Notes--2.6% BankBoston, N.A. $50,000,000 5.20% 04/01/99 $ 50,000,000 30,000,000 5.11 04/05/99 30,000,000 First Union National Bank 25,000,000 5.12 03/29/99 25,000,000 NationsBank Corp. 50,000,000 4.96 11/18/99 49,991,512 - ----------------------------------------------------------------------------------------------- Total Bank Notes $ 154,991,512 - ----------------------------------------------------------------------------------------------- Certificates of Deposit--0.8% Morgan Guaranty Trust Co. $50,000,000 5.14% 04/19/99 $ 50,000,000 - ----------------------------------------------------------------------------------------------- Total Certificates of Deposit $ 50,000,000 - ----------------------------------------------------------------------------------------------- Certificates of Deposit--Yankeedollar--11.3% Bank Austria, New York $25,000,000 5.71% 06/07/99 $ 24,990,221 50,000,000 5.08 12/30/99 49,995,206 Bayerische Landesbank, New York 25,000,000 5.66 02/26/99 25,010,799
Principal Interest Maturity Amortized Amount Rate Date Cost - --------------------------------------------------------------------------------------------------- Certificates of Deposit--Yankeedollar (continued) CIBC Oppenheimer, New York $100,000,000 5.01% 02/16/99 $100,000,000 Commerzbank, New York 8,000,000 5.37 02/24/99 8,001,946 19,000,000 5.41 03/11/99 19,009,284 Credit Agricole Indosuez, New York 15,000,000 5.74 04/26/99 14,997,286 Creditanstalt, New York 50,000,000 5.85 05/03/99 49,992,009 Deutsche Bank, New York 50,000,000 5.04 05/05/99 50,000,000 National Bank of Canada, New York 45,000,000 5.76 06/10/99 44,988,669 Societe Generale, New York 50,000,000 5.73 03/08/99 49,996,537 30,000,000 5.71 03/29/99 29,997,261 30,000,000 5.63 04/06/99 29,986,800 35,000,000 5.76 04/16/99 34,996,143 Toronto Dominion Bank, New York 30,100,000 4.97 05/20/99 30,090,612 25,000,000 5.10 12/29/99 25,001,195 UBS, New York 50,000,000 5.23 01/13/99 50,000,246 15,000,000 5.74 06/09/99 14,996,246 Westpac Banking Corp., New York 25,000,000 5.77 05/12/99 24,994,846 - --------------------------------------------------------------------------------------------------- Total Certificates of Deposit--Yankeedollar $677,045,306 - --------------------------------------------------------------------------------------------------- Taxable Municipal Notes--1.0% Florida Housing Finance Authority $ 27,900,000 5.50% 01/06/99 $ 27,900,000 Illinois Health & Education Facilities Authority for Elmhurst Memorial Series 1998 B 29,400,000 5.70 01/07/99 29,400,000 - --------------------------------------------------------------------------------------------------- Total Taxable Municipal Notes $ 57,300,000 - --------------------------------------------------------------------------------------------------- Time Deposits--4.6% Natexis Banque Grand Cayman(a) $100,000,000 5.50% 01/05/99 $100,000,000 National City Bank(b) 125,000,000 4.94 01/04/99 125,000,000 Societe Generale 50,000,000 5.00 01/04/99 50,000,000 - --------------------------------------------------------------------------------------------------- Total Time Deposit $275,000,000 - ---------------------------------------------------------------------------------------------------
- --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 8 Statement of Investments - -------------------------------------------------------------------------------- Financial Square Money Market Fund (continued) December 31, 1998 - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - --------------------------------------------------------------------------------------------------- Variable Rate Obligations(c)--38.8% Abbey National Treasury Services $ 25,000,000 5.38% 01/04/99 $ 24,988,785 115,000,000 5.07 01/20/99 114,948,047 Allmerica Funding 25,000,000 5.45 02/08/99 25,000,000 Banca CRT Financial Corp. 20,000,000 5.16 03/01/99 19,995,308 25,000,000 5.15 03/05/99 24,994,108 Bank of Austria, New York 50,000,000 5.49 01/04/99 49,985,444 Bank of Western Australia Ltd. 55,000,000 5.35 02/19/99 54,996,751 Barclays Bank PLC 125,000,000 5.49 01/04/99 124,960,609 25,000,000 5.49 02/01/99 24,983,399 Bayerische Landesbank 75,000,000 5.03 01/22/99 74,967,417 75,000,000 5.49 01/29/99 74,972,885 C.S. First Boston Corp. 40,000,000 5.20 01/04/99 40,000,000 40,000,000 5.57 02/01/99 40,000,000 Comerica Bank Detroit 35,000,000 5.42 01/19/99 34,988,729 Den Danske Bank Corp. 20,000,000 5.52 01/04/99 19,995,089 30,000,000 5.56 01/25/99 29,999,348 First Tennessee Bank, N.A. 30,000,000 5.07 01/25/99 29,995,489 First Union National Bank 35,000,000 5.24 01/20/99 35,000,000 25,000,000 5.57 01/28/99 25,000,000 Halifax PLC 40,000,000 5.24 03/10/99 40,010,506 Hydro Quebec 5,000,000 5.35 01/15/99 4,999,554 Istituto Bancario, New York 85,000,000 5.22 01/14/99 84,988,271 100,000,000 5.12 02/24/99 99,973,099 20,000,000 5.09 03/08/99 19,994,054 J.P. Morgan Securities, Inc. 20,000,000 5.21 01/04/99 19,998,488 75,000,000 5.48 01/07/99 74,977,583 Keybank, N.A. 35,000,000 5.13 02/22/99 34,997,339
Principal Interest Maturity Amortized Amount Rate Date Cost - ---------------------------------------------------------------------------------------------- Variable Rate Obligations (continued) Merrill Lynch & Co., Inc. $ 35,000,000 5.51% 01/11/99 $ 35,000,000 50,000,000 5.51 01/19/99 50,000,000 70,000,000 5.57 01/25/99 70,000,000 25,000,000 5.57 01/29/99 25,000,000 30,000,000 5.14 03/16/99 30,000,000 25,000,000 5.24 03/24/99 25,010,369 Morgan Stanley Dean Witter & Co. 80,000,000 5.30 01/15/99 79,999,704 National Rural Utilities Corp. 25,000,000 5.17 02/25/99 25,000,000 New York Life Insurance Co. 25,000,000 5.21 01/07/99 25,000,000 40,000,000 5.31 01/07/99 40,000,000 Norwest Financial 30,000,000 5.17 03/22/99 29,997,931 Old Kent Bank & Trust Co. 30,000,000 5.10 02/01/99 29,995,215 PNC Bank, N.A. 50,000,000 5.43 01/04/99 49,982,644 100,000,000 5.50 01/04/99 99,960,951 Postipankki Ltd. 25,000,000 5.32 02/09/99 24,998,693 SMM Trust Series 1998-A 40,000,000 5.32 03/16/99 40,000,000 Societe Generale, New York 45,000,000 5.51 01/07/99 44,993,064 25,000,000 5.54 01/26/99 24,992,568 Southtrust Bank of Alabama, N.A. 40,000,000 5.08 01/21/99 39,994,093 SunAmerica Life Insurance Co. 50,000,000 5.64 01/04/99 50,000,000 Svenska Handelsbanken 150,000,000 5.44 01/04/99 149,963,406 34,500,000 5.34 02/18/99 34,496,231 Westpac Banking Corp. 50,000,000 5.10 02/03/99 49,987,061 - ---------------------------------------------------------------------------------------------- Total Variable Rate Obligations $2,324,082,232 - ---------------------------------------------------------------------------------------------- Repurchase Agreement--0.6% Joint Repurchase Agreement Account(b) $ 36,200,000 4.82% 01/04/99 $ 36,200,000 - ---------------------------------------------------------------------------------------------- Total Repurchase Agreement $ 36,200,000 - ---------------------------------------------------------------------------------------------- Total Investments $6,085,098,505(d)
- -------------------------------------------------------------------------------- - --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 9 - -------------------------------------------------------------------------------- - --------------------------------------- --------------------------------------- - -------------------------------------------------------------------------------- (a) Forward commitments. (b) A portion of this security is segregated for forward commitments. (c) Variable rate security-base index is either U.S. Treasury Bill, LIBOR, one month commercial paper, Federal Funds, or Prime lending rate. (d) The amount stated also represents aggregate cost for federal income tax purposes. Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted notes, or, for floating rate securities, the current reset rate, which is based upon current interest rate indices. Maturity dates represent either the stated date on the security, the next interest reset date for floating rate securities, or the prerefunded date for those types of securities. The percentages shown for each investment category reflect the value of investments in that category as a percentage of total net assets. - -------------------------------------------------------------------------------- - --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 10 Statement of Investments - -------------------------------------------------------------------------------- Financial Square Premium Money Market Fund December 31, 1998 - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ------------------------------------------------------------------------------------------------- Commercial Paper and Corporate Obligations--29.0% Agricultural Services Cargill, Inc. $10,000,000 5.37% 02/23/99 $ 9,920,942 Bank Holding Companies Banque Et Caisse Epargne 5,000,000 5.01 03/29/99 4,939,463 Deutsche Bank Financial 5,000,000 5.60 01/07/99 4,995,333 Dresdner U.S. Finance 15,000,000 5.41 01/04/99 14,993,238 IMI Funding Corp., U.S.A. 5,927,000 5.38 02/26/99 5,877,398 San Paolo U.S. Finance Co. 5,000,000 5.31 03/01/99 4,956,488 Business Credit Institutions General Electric Capital Corp. 10,000,000 4.88 06/11/99 9,781,755 Electric and Gas Services Hydro Quebec 5,510,000 7.74 02/26/99 5,525,996 Receivable/Asset Financing Asset Portfolio Funding 5,000,000 5.20 03/17/99 4,945,833 Asset Securitization Corp. 15,000,000 5.15 03/12/99 14,849,792 CC USA, Inc. 10,000,000 5.27 01/29/00 9,959,011 Corporate Receivables Corp. 10,000,000 5.50 01/12/99 9,983,194 5,000,000 5.25 02/19/99 4,964,271 Edison Asset Securitization Corp. 5,000,000 5.13 01/29/99 4,980,050 5,000,000 5.14 02/26/99 4,960,022 5,000,000 5.15 03/22/99 4,942,778 Receivables Capital Corp. 15,000,000 5.50 01/04/99 14,993,125 Riverwoods Funding Corp. 10,000,000 5.05 02/25/99 9,922,847 WCP Funding, Inc. 10,000,000 5.53 01/12/99 9,983,103 Windmill Funding 5,000,000 5.30 01/15/99 4,989,694
Principal Interest Maturity Amortized Amount Rate Date Cost - -------------------------------------------------------------------------------------------------- Commercial Paper and Corporate Obligations (continued) Mortgage Banking Northern Rock PLC $ 5,000,000 5.12% 02/02/99 $ 4,977,244 Security and Commodity Brokers, Dealers and Services J.P. Morgan Securities, Inc. 5,000,000 5.02 04/21/99 4,923,306 Morgan Stanley Dean Witter & Co. 5,000,000 5.20 03/24/99 4,940,778 Salomon Smith Barney Holdings, Inc. 5,000,000 5.20 03/12/99 4,949,444 - -------------------------------------------------------------------------------------------------- Total Commercial Paper and Corporate Obligations $180,255,105 - -------------------------------------------------------------------------------------------------- Bank Notes--1.6% BankBoston, N.A. $ 5,000,000 5.11% 04/05/99 $ 5,000,000 5,000,000 5.15 05/04/99 5,000,000 - -------------------------------------------------------------------------------------------------- Total Bank Notes $ 10,000,000 - -------------------------------------------------------------------------------------------------- Certificates of Deposit--Yankeedollar--5.3% Deutsche Bank, New York $ 5,000,000 5.65% 03/22/99 $ 4,999,422 National Bank of Canada, New York 5,000,000 5.76 06/10/99 4,998,741 Royal Bank of Canada, New York 5,000,000 5.56 02/26/99 5,000,930 Societe Generale, New York 2,000,000 5.72 03/05/99 1,999,835 3,000,000 5.63 04/06/99 2,998,680 Swiss Bank Corp., New York 5,000,000 5.74 06/09/99 4,998,749 UBS, New York 5,000,000 5.23 01/13/99 5,000,024 Westpac Banking Corp., New York 3,000,000 5.77 05/12/99 2,999,382 - -------------------------------------------------------------------------------------------------- Total Certificates of Deposit--Yankeedollar $ 32,995,763 - -------------------------------------------------------------------------------------------------- Variable Rate Obligations(a)--26.6% Abbey National Treasury Services $10,000,000 5.37% 01/15/99 $ 9,995,332
- --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 11 - -------------------------------------------------------------------------------- - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ------------------------------------------------------------------------------------------------- Variable Rate Obligations (continued) Bank of Austria, New York $ 5,000,000 5.49% 01/04/99 $ 4,998,544 BankAmerica Corp. 6,000,000 5.39 01/15/99 6,004,337 Barclays Bank PLC 5,000,000 5.49 01/04/99 4,998,363 Bayerische Landesbank 5,000,000 5.49 01/25/99 4,999,491 2,000,000 5.09 03/23/99 1,999,655 C.S. First Boston Corp. 10,000,000 5.57 02/01/99 10,000,000 Citicorp, Inc. 5,000,000 5.20 03/17/99 5,000,000 Comerica Bank Detroit 5,000,000 5.11 03/10/99 4,998,495 Den Danske Bank Corp. 5,000,000 5.56 01/25/99 4,999,891 First Tennessee Bank, N.A. 5,000,000 5.07 01/25/99 4,999,248 First U.S.A. Bank 5,000,000 5.52 02/01/99 5,001,461 First Union National Bank 2,000,000 4.71 01/04/99 1,997,869 IBM Corp. 10,000,000 5.23 02/12/99 9,993,672 Istituto Bancario, New York 5,000,000 5.12 02/24/99 4,998,655 J.P. Morgan Securities, Inc. 5,000,000 5.48 01/07/99 4,998,506 Keybank, N.A. 3,000,000 5.52 01/11/99 2,999,352 Merrill Lynch & Co., Inc. 5,000,000 5.48 01/13/99 4,999,693 5,000,000 5.57 01/25/99 5,000,000 Morgan Stanley Dean Witter & Co. 5,000,000 5.30 01/15/99 4,999,981 National Rural Utilities Corp. 5,000,000 5.17 02/25/99 5,000,000 Old Kent Bank & Trust Co. 5,000,000 5.10 02/01/99 4,999,203 PepsiCo Inc. 10,000,000 5.21 02/19/99 9,992,890
Principal Interest Maturity Amortized Amount Rate Date Cost - ------------------------------------------------------------------------------------------------- Variable Rate Obligations (continued) PNC Bank, N.A. $ 5,000,000 5.50% 01/04/99 $ 4,997,873 5,000,000 5.50 01/27/99 4,998,048 SMM Trust Series 1998-A 2,000,000 5.32 03/16/99 2,000,000 Southtrust Bank of Alabama, N.A. 5,000,000 5.08 01/21/99 4,999,262 Svenska Handelsbanken 5,000,000 5.44 01/04/99 4,998,780 U.S. Bank, N.A. 10,000,000 5.50 01/08/99 9,998,493 Westpac Banking Corp. 5,000,000 5.11 02/03/99 4,998,706 - ------------------------------------------------------------------------------------------------- Total Variable Rate Obligations $164,965,800 - ------------------------------------------------------------------------------------------------- Repurchase Agreements--37.5% Joint Repurchase Agreement Account $182,800,000 4.82% 01/04/99 $182,800,000 Joint Repurchase Agreement Account II 50,000,000 4.89 01/04/99 50,000,000 - ------------------------------------------------------------------------------------------------- Total Repurchase Agreements $232,800,000 - ------------------------------------------------------------------------------------------------- Total Investments $621,016,668(b) - -------------------------------------------------------------------------------------------------
(a) Variable rate security-base index is either U.S. Treasury Bill, one or three month LIBOR, one month commercial paper, Federal Funds, or Prime lending rate. (b) The amount stated also represents aggregate cost for federal income tax purposes. Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted notes, or, for floating rate securities, the current reset rate, which is based upon current interest rate indices. Maturity dates represent either the stated date on the security, the next interest reset date for floating rate securities, or the prerefunded date for those types of securities. The percentages shown for each investment category reflect the value of investments in that category as a percentage of total net assets. - --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 12 Statement of Investments - -------------------------------------------------------------------------------- Financial Square Treasury Obligations Fund December 31, 1998 - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ------------------------------------------------------------------------------------------------ U.S. Treasury Obligations--16.2% United States Treasury Notes $ 85,000,000 6.38% 04/30/99 $ 85,209,148 60,000,000 6.38 05/17/99 60,165,750 60,000,000 6.25 06/01/99 60,166,783 115,000,000 6.00 06/30/99 115,515,225 42,000,000 6.00 08/16/99 42,428,849 52,000,000 7.13 09/30/99 52,819,839 202,000,000 7.50 11/01/99 207,137,071 195,000,000 5.88 11/15/99 197,252,584 50,000,000 7.75 11/30/99 51,350,109 - ------------------------------------------------------------------------------------------------ Total U.S. Treasury Obligations $ 872,045,358 - ------------------------------------------------------------------------------------------------ Repurchase Agreements--84.0% ABN/AMRO, Inc. (a) $ 235,000,000 4.92% 01/04/99 $ 235,000,000 Barclays Bank(a) 235,000,000 4.88 01/06/99 235,000,000 Bear Stearns Companies, Inc.(a) 235,000,000 4.60 01/04/99 235,000,000 C.S. First Boston Corp.(a) 235,000,000 4.82 01/04/99 235,000,000 CIBC Oppenheimer, Inc.(a) 100,000,000 4.70 01/04/99 100,000,000 Deutsche Bank(a) 235,000,000 4.88 01/04/99 235,000,000 Goldman, Sachs & Co.(a) 235,000,000 4.96 01/04/99 235,000,000 Joint Repurchase Agreement Account 1,678,200,000 4.82 01/04/99 1,678,200,000 J.P. Morgan Securities, Inc.(a) 235,000,000 4.75 01/04/99 235,000,000 Lehman Government Securities, Inc.(a) 235,000,000 4.90 01/04/99 235,000,000 Merrill Lynch Government Securities, Inc.(a) 160,000,000 4.65 01/04/99 160,000,000 Morgan Stanley Government Securities, Inc.(a) 240,000,000 5.75 01/04/99 240,000,000 NationsBanc Montgomery Securities LLC(a) 235,000,000 4.75 01/04/99 235,000,000
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- Repurchase Agreements (continued) Salomon Smith Barney Holdings, Inc.(a) $ 235,000,000 4.90% 01/04/99 $ 235,000,000 - ----------------------------------------------------------------------------------------------- Total Repurchase Agreements $4,528,200,000 - ----------------------------------------------------------------------------------------------- Total Investments $5,400,245,358(b) - -----------------------------------------------------------------------------------------------
(a) At December 31, 1998, these agreements were fully collateralized by U.S. Treasury obligations. (b) The amount stated also represents aggregate cost for federal income tax purposes. The percentages shown for each investment category reflects the value of the investments in that category as a percentage of total net assets. - --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 13 Statement of Investments - -------------------------------------------------------------------------------- Financial Square Treasury Instruments Fund December 31, 1998 - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ------------------------------------------------------------------------------------------------- U.S. Treasury Obligations--100.4% United States Treasury Bills $ 80,000,000 4.01% 01/07/99 $ 79,946,533 15,000,000 4.22 01/07/99 14,989,456 82,900,000 4.26 01/07/99 82,841,141 25,000,000 4.03 01/14/99 24,963,663 4,800,000 4.40 01/21/99 4,788,280 174,300,000 4.48 01/21/99 173,866,186 21,900,000 4.26 01/28/99 21,830,030 100,000,000 4.35 02/04/99 99,589,167 18,100,000 4.51 02/04/99 18,022,904 22,000,000 4.29 02/11/99 21,892,512 35,000,000 4.34 02/11/99 34,827,202 100,000,000 4.35 02/11/99 99,504,583 35,900,000 4.36 02/11/99 35,721,737 34,900,000 4.40 02/11/99 34,725,112 84,900,000 4.38 03/04/99 84,260,302 35,000,000 4.41 03/11/99 34,704,163 - ------------------------------------------------------------------------------------------------- Total U.S. Treasury Obligations $866,472,971 - ------------------------------------------------------------------------------------------------- Total Investments $866,472,971(a) - -------------------------------------------------------------------------------------------------
(a) The amount stated also represents aggregate cost for federal income tax purposes. Interest rates represent the annualized yield on date of purchase for discounted notes. The percentages shown for each category reflect the value of investments in that category as a percentage of total net assets. - -------------------------------------------------------------------------------- - --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 14 Statement of Investments - -------------------------------------------------------------------------------- Financial Square Government Fund December 31, 1998 - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- U.S. Government Agency Obligations--74.7% Federal Farm Credit Bank $ 35,970,000 5.65% 01/04/99 $ 35,969,573 48,000,000 4.76(a) 01/18/00 47,912,400 Federal Home Loan Bank 88,760,000 4.75 01/20/99 88,537,484 50,000,000 5.50 03/26/99 49,981,819 37,795,000 5.63 04/09/99 37,788,930 38,045,000 5.52 08/12/99 38,184,017 125,000,000 4.86(a)(b) 04/11/00 124,913,750 Federal Home Loan Mortgage Corp. 50,000,000 5.41(b) 01/04/99 49,987,532 150,000,000 5.35(b) 01/18/99 149,935,064 115,000,000 5.44(b) 01/26/99 114,994,661 155,000,000 5.15 02/03/99 154,268,271 30,000,000 4.92 03/19/99 29,684,300 81,769,000 4.79 04/09/99 80,702,778 240,000,000 5.36(b) 04/21/99 239,957,326 41,000,000 5.60 04/21/99 41,102,352 Federal National Mortgage Association 85,000,000 4.98(b) 01/05/99 84,974,700 95,000,000 5.07 01/08/99 94,906,346 80,000,000 5.33(b) 01/17/99 79,991,913 200,000,000 5.36(b) 01/22/99 199,993,172 50,000,000 4.96(b) 01/23/99 49,978,159 41,000,000 5.41 02/23/99 40,989,434 35,000,000 5.53 03/11/99 34,994,972 40,000,000 4.98(b) 03/15/99 39,984,830 48,095,000 6.00 09/02/99 48,332,404 70,000,000 4.78 11/30/99 69,973,148 25,890,000 4.72 12/16/99 25,868,971 Student Loan Marketing Association 100,000,000 5.45(b) 01/03/99 99,940,164 25,000,000 5.63 06/30/99 24,995,685 - ----------------------------------------------------------------------------------------------- Total U.S. Government Agency Obligations $2,178,844,155 - ----------------------------------------------------------------------------------------------- Repurchase Agreements--31.3% ABN/AMRO, Inc.(c) $200,000,000 5.15% 01/04/99 $ 200,000,000 Joint Repurchase Agreement Account(d) 314,000,000 4.82 01/04/99 314,000,000 Joint Repurchase Agreement Account II 200,000,000 4.89 01/04/99 200,000,000
Principal Interest Maturity Amortized Amount Rate Date Cost - ---------------------------------------------------------------------------------------------- Repurchase Agreements (continued) NationsBanc Montgomery Securities LLC(c) $200,000,000 5.15% 01/04/99 $ 200,000,000 - ---------------------------------------------------------------------------------------------- Total Repurchase Agreements $ 914,000,000 - ---------------------------------------------------------------------------------------------- Total Investments $3,092,844,155(e) - ----------------------------------------------------------------------------------------------
(a) Forward commitments. (b) Variable rate security-base index is either Federal Funds, Prime lending rate, or LIBOR. (c) At December 31, 1998, these securities were fully collateralized by Federal Agency obligations. (d) A portion of this security is segregated for forward commitments. (e) The amount stated also represents aggregate cost for federal income tax purposes. Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted notes, or, for floating rate securities, the current reset rate, which is based upon current interest rate indices. The percentages shown for each investment category reflect the value of investments in that category as a percentage of total net assets. - --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 15 Statement of Investments - -------------------------------------------------------------------------------- Financial Square Federal Fund December 31, 1998 - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ------------------------------------------------------------------------------------------------ U.S. Government Agency Obligations--107.5% Federal Farm Credit Bank $ 60,000,000 4.50% 01/04/99 $ 59,977,500 50,000,000 5.09(a) 01/04/99 50,000,000 12,100,000 5.13 01/12/99 12,081,033 14,000,000 5.10 01/13/99 13,976,200 9,700,000 5.07 01/15/99 9,680,875 18,000,000 5.06 01/19/99 17,954,460 9,700,000 5.05 01/20/99 9,674,147 20,000,000 5.01 02/01/99 19,913,717 10,000,000 4.98 02/08/99 9,947,433 10,000,000 5.14 02/10/99 9,942,889 25,000,000 4.98 02/12/99 24,854,750 30,000,000 5.38 03/02/99 29,991,641 75,000,000 5.34(a) 04/15/99 74,989,490 25,000,000 5.35(a) 05/03/99 24,995,886 15,000,000 4.81 05/17/99 14,727,433 35,000,000 5.00(a) 06/01/99 34,991,503 60,000,000 5.00(a) 07/01/99 59,982,547 90,000,000 5.36(a) 07/23/99 89,960,517 100,000,000 5.34(a) 08/05/99 99,959,220 50,000,000 5.50 09/01/99 50,091,696 50,000,000 5.37(a) 10/13/99 50,000,000 60,000,000 5.37(a) 10/15/99 60,000,000 7,500,000 4.75 12/01/99 7,491,229 35,000,000 5.41(a) 12/01/99 35,000,000 58,000,000 4.76(b) 01/18/00 57,942,822 Federal Home Loan Bank 20,000,000 4.30 01/04/99 19,992,833 1,900,000 4.75 01/04/99 1,899,248 32,655,000 5.03 01/04/99 32,641,312 100,000,000 5.04 01/04/99 99,958,042 30,000,000 5.04 01/04/99 29,987,400 3,400,000 5.08 01/04/99 3,398,561 149,000,000 4.70 01/06/99 148,902,735 20,000,000 5.03 01/06/99 19,986,028 25,823,000 5.04 01/06/99 25,804,924 50,000,000 4.75 01/08/99 49,953,819 1,000,000 5.06 01/13/99 998,313 80,000,000 4.75 01/15/99 79,852,222 40,000,000 4.84 01/15/99 39,924,711
Principal Interest Maturity Amortized Amount Rate Date Cost - --------------------------------------------------------------------------------------------- U.S. Government Agency Obligations (continued) Federal Home Loan Bank (continued) $ 88,600,000 4.75% 01/20/99 $ 88,377,885 10,400,000 5.12 01/20/99 10,371,897 27,700,000 4.79 01/22/99 27,622,602 25,000,000 4.94 01/22/99 24,927,958 28,784,000 4.82 01/27/99 28,683,800 48,970,000 5.03 02/03/99 48,744,207 19,000,000 5.05 02/03/99 18,912,046 40,000,000 5.05 02/05/99 39,803,611 75,000,000 5.34(a) 02/11/99 74,994,231 50,000,000 4.90 02/17/99 49,680,139 117,050,000 5.00 03/03/99 116,059,318 23,000,000 4.95 03/05/99 22,800,763 40,000,000 4.96 03/08/99 39,636,267 34,000,000 4.96 03/10/99 33,681,458 21,000,000 4.99(a) 03/10/99 20,994,784 20,000,000 5.60 03/10/99 19,999,851 83,000,000 4.95 03/17/99 82,144,063 27,095,000 4.97 03/17/99 26,814,454 50,000,000 4.96 03/17/99 49,483,333 48,258,000 4.95 03/19/99 47,747,068 5,000,000 4.97 03/19/99 4,946,849 21,189,000 4.82 05/05/99 20,837,216 34,889,000 4.84 05/05/99 34,307,362 20,000,000 5.61 06/18/99 19,994,919 100,000,000 5.38(a) 09/08/99 99,965,753 75,000,000 4.80(a) 11/09/99 74,956,021 125,000,000 4.86(a)(b) 01/11/00 124,913,750 Student Loan Marketing Association 25,000,000 4.28 01/04/99 24,991,083 150,000,000 4.99(c) 01/19/99 149,625,750 100,000,000 4.73(c) 01/27/99 99,658,389 75,000,000 5.01 02/11/99 74,572,062 12,890,000 4.95 02/16/99 12,808,471 70,000,000 4.99(a) 04/01/99 69,993,268 25,000,000 5.13(a) 04/16/99 24,996,476 30,000,000 5.63 06/02/99 29,993,954 10,000,000 5.63 06/30/99 9,997,815 130,000,000 5.00(a) 09/15/99 129,932,382
- --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 16 Statement of Investments - -------------------------------------------------------------------------------- Financial Square Federal Fund (continued) December 31, 1998 - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - --------------------------------------------------------------------------------------------- U.S. Government Agency Obligations (continued) Student Loan Marketing Association (continued) $ 75,000,000 5.37(a) 10/15/99 $ 75,000,000 100,000,000 5.45(a) 12/03/99 99,940,164 65,000,000 5.24(a)(b) 01/11/00 64,968,150 Tennessee Valley Authority 40,000,000 5.08 01/28/99 39,847,600 - --------------------------------------------------------------------------------------------- Total U.S. Government Agency Obligations $3,639,154,305 - --------------------------------------------------------------------------------------------- Total Investments $3,639,154,305(d) - ---------------------------------------------------------------------------------------------
(a) Variable rate security-base index is either U.S. Treasury Bill, Federal Funds, Prime lending rate, or LIBOR. (b) Forward commitments. (c) A portion of these securities are segregated for forward commitments. (d) The amount stated also represents aggregate cost for federal income tax purposes. Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted notes, or, for floating rate securities, the current reset rate, which is based upon current interest rate indices. The percentages shown for each investment category reflect the value of investments in that category as a percentage of total net assets. - -------------------------------------------------------------------------------- - --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 17 Statement of Investments - -------------------------------------------------------------------------------- Financial Square Tax-Free Money Market Fund December 31, 1998 - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- Alabama--4.4% City of Mobile Industrial Development PCRB for Alabama Power Series 1993 A (A-1/VMIG1) $ 4,600,000 3.95% 01/07/99 $ 4,600,000 City of Valdez Marine Terminal RB for Arco Transportation 1994 Series B (A-1/VMIG1) 8,200,000 4.15 01/07/99 8,200,000 Columbia IDB PCRB for Alabama Power Company Series 1995 B (A-1/VMIG1) 25,000,000 5.00 01/04/99 25,000,000 Columbia IDB PCRB for Alabama Power Company Series 1995 D (A-1/VMIG1) 2,000,000 4.80 01/04/99 2,000,000 Columbia Town IDRB for Alabama Power Co. Series 1996 A (A-1/VMIG1) 8,300,000 5.00 01/04/99 8,300,000 Eutaw City IDB PCRB for Mississippi Power Co. Greene County Plant Project Series 1992 (A-1/VMIG1) 6,550,000 4.10 01/07/99 6,550,000 Homewood City Educational Building Authority Educational Facilities RB for Samford University Series 1996 (Bank of Nova Scotia) (A-1+/VMIG1) 7,900,000 5.00 01/04/99 7,900,000 Jefferson County MF Hsg. RB for Hickory Knolls Project Series 1994 (Amsouth Bank LOC) (P-1) 3,770,000 4.05 01/07/99 3,770,000 Montgomery City Special Care RB Series 1994 A (Amsouth Bank) (VMIG1) 7,900,000 3.95 01/07/99 7,900,000 - ----------------------------------------------------------------------------------------------- $ 74,220,000 - ----------------------------------------------------------------------------------------------- Arizona--2.3% Maricopa County PCRB for Arizona Pollution Control Corp. Series 1994 A (Morgan Guaranty Trust Co.) (A-1+/P-1) $ 5,200,000 5.10% 01/04/99 $ 5,200,000 Maricopa County PCRB Series 1994 D (Bank of America National Trust & Savings) (A-1+/P-1) 11,700,000 5.05 01/04/99 11,700,000 Tempe VRDN Excise Tax Revenue Obligations Series 1998 (A-1+/VMIG1) 21,800,000 5.00 01/04/99 21,800,000 - ----------------------------------------------------------------------------------------------- $ 38,700,000 - ----------------------------------------------------------------------------------------------- California--2.4% California Health Facilities Authority Insured Variable Rate Hospital RB for Adventist Health System/West Series 1998 A (MBIA) (A-1+/VMIG1) $ 9,500,000 5.00% 01/04/99 $ 9,500,000
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- California (continued) California Pollution Control Financing Authority PCRB for Pacific Gas & Electric Company Series 1996 F (Banque Nationale de Paris, S.A.) (A-1) $ 3,600,000 5.00% 01/04/99 $ 3,600,000 City of Long Beach TRANS Series 1998-1999 (SP-1+) 3,400,000 4.00 10/05/99 3,421,009 Irvine Ranch Water District Consolidated Refunding Series 1985 B (Landesbank Hessen-Thuringen LOC) (A-1+) 4,000,000 5.00 01/04/99 4,000,000 Los Angeles County TRANS Series 1998-99 A (SP-1+/MIG1) 10,000,000 4.50 06/30/99 10,045,198 State of California Municipal Securities Trust Receipt Series 1997 SGA 55 (FGIC) (A-1+) 9,300,000 4.03 01/07/99 9,300,000 - ----------------------------------------------------------------------------------------------- $ 39,866,207 - ----------------------------------------------------------------------------------------------- Colorado--1.0% Jefferson County School District TANS Series 1998 (SP-1+/MIG1) $15,910,000 4.00% 06/30/99 $ 15,975,320 - ----------------------------------------------------------------------------------------------- Connecticut--1.5% State of Connecticut 2nd Lien Special TRANS VRDN (Commerzbank Bank LOC) (A-1+/VMIG1) $25,700,000 4.10% 01/07/99 $ 25,700,000 - ----------------------------------------------------------------------------------------------- Florida--1.8% Florida Local Government Finance Commission Series A (First Union National Bank) (A-1/P-1) $16,890,000 3.00% 03/15/99 $ 16,890,000 Putnam County Development Authority Floating/Fixed Rate PCRB for Seminole Electric Series 1984 H1 (NRU LOC) (A-1+/P-1) 3,600,000 4.05 01/07/99 3,600,000 Putnam County Development Authority Floating/Fixed Rate PCRB for Seminole Electric Series 1984 H2 (NRU LOC) (A-1+/P-1) 6,530,000 4.05 01/07/99 6,530,000 Putnam County Development Authority Floating/Fixed Rate PCRB for Seminole Electric Series 1984 S (NRU LOC) (A-1+/P-1) 2,655,000 4.05 01/07/99 2,655,000 - ----------------------------------------------------------------------------------------------- $ 29,675,000 - ----------------------------------------------------------------------------------------------- Georgia--13.4% Bartow County IDA PCRB for Georgia Power Co. First Series 1997 (A-1/VMIG1) $38,000,000 5.00% 01/04/99 $ 38,000,000 Burke County IDA Adjustable Tender PCRB for Oglethorpe Power Corp. Series 1993 A (FGIC) (A-1+/VMIG1) 21,200,000 3.85 01/07/99 21,200,000
- --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 18 Statement of Investments - -------------------------------------------------------------------------------- Financial Square Tax-Free Money Market Fund (continued) December 31, 1998 - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- Georgia (continued) Burke County IDA PCRB for Georgia Power Co. First Series 1997 (A-1/VMIG1) $11,200,000 5.05% 01/04/99 $ 11,200,000 Burke County IDA PCRB for Oglethorpe Power Corp. Series 1993 A (FGIC)(A- 1+/VMIG1)(a) 12,000,000 3.80 01/07/99 12,000,000 Burke County PCRB Series 1994 A for Oglethorpe Power Corp. (FGIC) (A- 1+/VMIG1) 3,175,000 3.85 01/07/99 3,175,000 Dekalb County Hospital Authority Revenue Anticipation Certificates for Dekalb Medical Center Series 1993 B (Suntrust Bank) (VMIG1) 2,030,000 4.00 01/07/99 2,030,000 Georgia Municipal Electric and Gas Project One Subordinated Bonds Series 1994 E (ABN/AMRO Bank, N.V.) (A-1+/VMIG1) 31,290,000 3.80 01/07/99 31,290,000 Georgia Municipal Gas Authority RB for Agency Project Series B (C.S. First Boston/Morgan Guaranty/Bayerische Landesbank Girozentrale/Wachovia Bank N.A./ABN/AMRO Bank, N.V.) (A-1+) 9,900,000 4.15 01/07/99 9,900,000 Georgia Municipal Gas Authority RB Series A (C.S. First Boston /Morgan Guaranty/Bayerische Landesbank Girozentrale/Wachovia Bank N.A./ABN/AMRO Bank, N.V.) (A-1+) 20,305,000 4.15 01/07/99 20,305,000 Georgia Municipal Gas Authority RB for Gas Portfolio II Project Series A (C.S. First Boston/Morgan Guaranty/Bayerische Landensbank Girozentrale/Wachovia Bank N.A. ABN/AMRO Bank, N.V.) (A-1+)(a) 6,840,000 3.80 01/07/99 6,840,000 Georgia Municipal Gas Authority RB for Gas Portfolio II Project Series B (C.S. First Boston/Morgan Guaranty/Bayerische Landesbank Girozentrale/Wachovia Bank N.A.) (A-1+) 47,055,000 3.90 01/07/99 47,055,000 Municipal Electric Authority of Georgia Subordinated General Resolution Bonds Series 1985 C (Bayerische Landesbank Girozentrale LOC) (A-1+/VMIG1) 14,400,000 4.15 01/07/99 14,400,000 Municipal Electric Authority of Georgia Subordinate General Resolution Bonds Series 1985 B (Landesbank Hessen-Thuringen LOC) (A-1+/VMIG1) 7,200,000 3.95 01/07/99 7,200,000 - ----------------------------------------------------------------------------------------------- $224,595,000 - ----------------------------------------------------------------------------------------------- Idaho--1.2% State of Idaho TANS Series 1998 (MIG1/SP-1+) $20,000,000 4.50% 06/30/99 $ 20,085,648
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- Illinois--6.0% Chicago City RB for Chicago Midway Airport Series 1996A Societe Generale Trustor Municipal Securities Trust Receipts (MBIA) (A-1+C) $ 7,540,000 4.10% 01/07/99 $ 7,540,000 Cook County GO VRDN Series 1996 (A-1+/VMIG1) 1,000,000 4.10 01/07/99 1,000,000 Illinois Health Facilities Authority VRDN Adjustable RB for Evanston Northwestern Health Care Corp. Series 1998 (A-1+/VMIG1) 7,500,000 3.70 06/01/99 7,500,000 Illinois Health Facilities Authority VRDN for Elmhurst Memorial Health Systems Series 93B (VMIG1) 3,200,000 5.15 01/04/99 3,200,000 Illinois Health Facilities Authority VRDN for Northwest Community Hospital Series 1997 (A-1+/VMIG1) 8,200,000 4.00 01/07/99 8,200,000 Illinois Health Facilities Authority VRDN for the Revolving Fund Pooled Finance Program Series 1985 C (The First National Bank of Chicago) (A- 1+/VMIG1) 19,000,000 4.10 01/07/99 19,000,000 Illinois Health Facilities Authority VRDN RB for Northwest Community Hospital Series 1995 (A-1+/VMIG1) 4,800,000 4.00 01/07/99 4,800,000 Illinois Health Facility Authority VRDN Revolving Fund Pooled Finance Program Series 85D (The First National Bank of Chicago) (A- 1+/VMIG1) 21,000,000 4.10 01/07/99 21,000,000 Illinois State GO Eagle Tax Exempt Trust Series 1995 96C1305 Class A COPS (FGIC) (A-1C) 14,850,000 4.15 01/07/99 14,850,000 O'Hare International Airport Adjustable Rate RB for American Airlines Series 1983 B (P-1) 10,100,000 5.00 01/04/99 10,100,000 Sauget Village PCRB VRDN for Monsanto Project Series 1992 (P-1) 1,000,000 4.15 01/07/99 1,000,000 Sauget Village PCRB VRDN for Monsanto Project Series 1993 (P-1) 1,900,000 4.15 01/07/99 1,900,000 - ----------------------------------------------------------------------------------------------- $100,090,000 - ----------------------------------------------------------------------------------------------- Indiana--2.3% Fort Wayne Hospital Authority VRDN for Parkview Memorial Hospital Series 1985 B (Bank of America LOC) (VMIG1) $1,600,000 3.90% 01/07/99 $ 1,600,000 Indiana Development Finance Authority Series 1997 (Bayer Corporation) (A- 1+/P-1) 4,800,000 5.15 01/04/99 4,800,000
- --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 19 - -------------------------------------------------------------------------------- - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- Indiana (continued) Indiana Health Facilities Financing Authority Hospital RB Series 1997 E (A-1+/VMIG1)(a) $19,540,000 3.80% 01/07/99 $ 19,540,000 Indiana Hospital Equipment Financing Authority VRDN Series 1985 A (MBIA) (A-1/VMIG1) 5,000,000 4.00 01/07/99 5,000,000 Warrick County PCRB for ALCOA Series 1992 (A-1) 7,475,000 4.15 01/07/99 7,475,000 - ----------------------------------------------------------------------------------------------- $ 38,415,000 - ----------------------------------------------------------------------------------------------- Iowa--1.9% Chillicothe City PCRB for Midamerican Energy Co./Midwest Power Systems Series 1993 A (A-1/VMIG1) $ 2,400,000 4.20% 01/07/99 $ 2,400,000 Louisa County PCRB for Iowa-Illinois Gas & Electric Co./Midamerican Energy Co. Series 1986 A (A-1) 9,100,000 4.20 01/07/99 9,100,000 Louisa County PCRB for Midwest Power Systems Inc. Series 1994 (A-1/VMIG1)(b) 20,000,000 4.20 01/07/99 20,000,000 - ----------------------------------------------------------------------------------------------- $ 31,500,000 - ----------------------------------------------------------------------------------------------- Kentucky--2.2% Calvert PCRB for Air Products and Chemicals, Inc. Project Series 1993 A (A-1) $ 3,000,000 4.10% 01/07/99 $ 3,000,000 Kentucky Economic Development Financing Authority Adjustable Rate Hospital Facilities RB for the Health Alliance of Greater Cincinnati Series 1997 D (MBIA) (A-1+/VMIG1) 11,700,000 4.00 01/07/99 11,700,000 Kentucky Turnpike Authority Resource Recovery Road Refunding RB Series 1987 A Trust Receipts, Series 1997 (FSA) (A-1+/VMIG1) 18,165,000 4.10 01/07/99 18,165,000 Trimble County PCRB for Louisville Gas and Electric Co. Series 1996 A (A- 1/VMIG1) 4,000,000 3.05 03/26/99 4,000,000 - ----------------------------------------------------------------------------------------------- $ 36,865,000 - ----------------------------------------------------------------------------------------------- Louisiana--1.2% Calcasieu Parish VRDN for Olin Corp. Series 1993 B (Wachovia Bank N.A. (A- 1+) $ 5,500,000 5.10% 01/04/99 $ 5,500,000 East Baton Rouge PCRB for Exxon Project Series 1993 (A-1+/P-1) 4,900,000 5.00 01/04/99 4,900,000
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- Louisiana (continued) Parish of Desoto PCRB for Central Louisiana Electric Co. Series 1991 A (Westdeutsche Landesbank Girozentrale LOC) (A-1+/VMIG1) $10,000,000 3.85% 01/07/99 $ 10,000,000 - ----------------------------------------------------------------------------------------------- $ 20,400,000 - ----------------------------------------------------------------------------------------------- Maryland--2.4% Maryland State & Local Loan of 1998 GO Puttable Floating Option Tax-Exempt Securities Receipts PA-256 Series 1 (A-1+) $29,665,000 4.10% 01/07/99 $ 29,665,000 Washington Suburban Sanitary District GO VRDN Series 1998 (A-1+/VMIG1) 11,000,000 4.05 01/07/99 11,000,000 - ----------------------------------------------------------------------------------------------- $ 40,665,000 - ----------------------------------------------------------------------------------------------- Massachusetts--4.2% Commonwealth of Massachusetts GO Refunding Bonds Series 1998 A (A- 1+/VMIG1) $ 3,000,000 3.90% 01/07/99 $ 3,000,000 Commonwealth of Massachusetts GO Refunding Bonds 1995 A (AA3/AA-) 5,000,000 5.50 07/01/99 5,053,395 Commonwealth of Massachusetts GO Refunding Bonds 1997 A (AA3/AA-) 9,485,000 4.50 08/01/99 9,571,168 Massachusetts Health & Education Facility Authority for Harvard University Series A Eagle Tax-Exempt Trust Series 972104 Class A COPS (A-1+C) 10,000,000 4.15 01/07/99 10,000,000 Massachusetts Water Resources Authority Subordinated General Revenue RB Series 1998 D (FGIC) (A-1+/VMIG1) 42,195,000 3.90 01/07/99 42,195,000 - ----------------------------------------------------------------------------------------------- $ 69,819,563 - ----------------------------------------------------------------------------------------------- Michigan--1.8% Michigan Building Authority CP Notes Series 2 (Canadian Imperial Bank of Commerce) (A-1+/P-1) $17,500,000 3.30% 02/09/99 $ 17,500,000 Michigan State Trunk Line Fund Series 1998 A--Eagle Tax-Exempt Trust Series 982202 Class A Certificates (A-1+C) 12,165,000 4.13 01/07/99 12,165,000 - ----------------------------------------------------------------------------------------------- $ 29,665,000 - ----------------------------------------------------------------------------------------------- Minnesota--0.2% Port Authority of St. Paul VRDN for Weyerhaeuser Project Series 1993 (A-1) $ 4,000,000 4.10% 01/07/99 $ 4,000,000 - -----------------------------------------------------------------------------------------------
- --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 20 Statement of Investments - -------------------------------------------------------------------------------- Financial Square Tax-Free Money Market Fund (continued) December 31, 1998 - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- Mississippi--0.6% Jackson County PCRB for Chevron U.S.A. Series 1992 (VMIG1) $10,000,000 5.10% 01/04/99 $ 10,000,000 - ----------------------------------------------------------------------------------------------- Missouri--0.4% Missouri Environmental Improvement & Energy VRDN PCRB for Monsanto Series 1993 (P-1) $ 1,500,000 4.10% 01/07/99 $ 1,500,000 Missouri Refunding RB for Washington University Series 1984 (A-1+/VMIG1) 5,800,000 4.10 01/07/99 5,800,000 - ----------------------------------------------------------------------------------------------- $ 7,300,000 - ----------------------------------------------------------------------------------------------- Nevada--3.1% Clark County Refunding RB for Nevada Airport System Series 1993 A (MBIA) (A-1+/VMIG1) $52,060,000 3.85% 01/07/99 $ 52,060,000 - ----------------------------------------------------------------------------------------------- New Jersey--1.6% New Jersey TRANS Series 1999 A (A-1+/P-1) $ 5,000,000 3.35% 03/11/99 $ 5,000,000 13,500,000 2.95 03/17/99 13,500,000 7,500,000 3.35 04/06/99 7,500,000 - ----------------------------------------------------------------------------------------------- $ 26,000,000 - ----------------------------------------------------------------------------------------------- New Mexico--0.4% State of New Mexico TRANS Series 1998 (SP-1+/MIG1) $ 6,800,000 4.25% 06/30/99 $ 6,821,041 - ----------------------------------------------------------------------------------------------- New York--6.2% Long Island Power Authority Electric System Subordinated RB Series 3 (Bayerische Landesbank Girozentrale/Westdeutsche Landesbank Girozentrale) (A-1+/VMIG1) $22,000,000 2.90% 03/11/99 $ 22,000,000 Long Island Power Authority Electric System Subordinated RB Series 4 (Bayerische Landesbank Girozentrale/Westdeutsche Landesbank Girozentrale) (A-1+/VMIG1) 24,800,000 3.05 03/09/99 24,800,000 Long Island Power Authority Electric System Subordinated RB Series 6 (Morgan Guaranty Trust Co./ABN/AMRO Bank, N.V.) (A-1+/VMIG1) 16,930,000 4.85 01/04/99 16,930,000 New York City Adjustable Rate GO Bonds Series 1994 B/Subseries B-2 (Morgan Guaranty Trust) (A-1+/VMIG1) 700,000 5.00 01/04/99 700,000 New York City GO Bonds Fiscal 1995 Series B-5 (MBIA) (A-1+/VMIG1) 2,370,000 5.15 01/04/99 2,370,000
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- New York (continued) New York City GO Puttable Tax-Exempt Receipts Series 1995 D (MBIA) (VMIG1) $ 8,500,000 4.25% 01/07/99 $ 8,500,000 New York City Health & Hospitals Corp. Health System Bonds Series 1997 B (Canadian Imperial Bank of Commerce) (A-1+/VMIG1) 600,000 3.95 01/07/99 600,000 New York City Transitional Finance Authority Future Tax Secured Bonds Series 1999 A, Subseries A-1 (A-1+/VMIG1) 5,000,000 4.05 01/07/99 5,000,000 New York City Transitional Finance Authority Future Tax Secured Bonds Series 1999 A, Subseries A-2 (A-1+/VMIG1) 10,000,000 3.90 01/07/99 10,000,000 New York State Environmental Facility Corp. RB Eagle Tax-Exempt Trust Series 1994 D, Class A COPS (A-1+) 11,000,000 4.13 01/07/99 11,000,000 Syracuse University IDA RB for Syracuse University Eggers Hall Series 1993 (Morgan Guaranty Trust Co.) (A-1+/VMIG1) 2,600,000 5.00 01/04/99 2,600,000 - ----------------------------------------------------------------------------------------------- $ 104,500,000 - ----------------------------------------------------------------------------------------------- North Carolina--4.0% Charlotte Variable Rate Airport Refunding RB Series 1993 A (MBIA) (A-1+/VMIG1) $ 1,500,000 3.85% 01/07/99 $ 1,500,000 City of Greensboro COPS Series 1998 (A-1+/VMIG1) 5,000,000 4.10 01/07/99 5,000,000 North Carolina State Public School Building Bonds Series 1998A Puttable Floating Option Tax-Exempt Receipts Series PA 283 (A-1+) 8,750,000 4.10 01/07/99 8,750,000 Person County PCRB for Carolina Power & Light Series 1992 A (A-1/P-1) 16,400,000 4.10 01/07/99 16,400,000 Rockingham County Refunding PCRB for Philip Morris Project Series 1992 (A- 1/P-1)(b) 7,700,000 4.10 01/07/99 7,700,000 Wake County Industrial Facilities & Pollution Control Financing Authority PCRB for Carolina Power & Light Series 1990 B (Bank of New York)(A-1+/P- 1) 7,000,000 3.15 03/11/99 7,000,000 10,000,000 2.90 03/23/99 10,000,000 10,000,000 2.90 03/24/99 10,000,000 - ----------------------------------------------------------------------------------------------- $ 66,350,000 - -----------------------------------------------------------------------------------------------
- --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 21 - -------------------------------------------------------------------------------- - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- Ohio--0.8% Columbus Electric System RB Series 1994 (Union Bank of Switzerland LOC) (VMIG1) $10,900,000 3.30% 02/01/99 $ 10,900,000 Hamilton County Adjustable Rate Hospital Facilities RB for the Health Alliance of Greater Cincinnati Series 1997 B (MBIA) (A-1+/VMIG1) 2,800,000 4.00 01/07/99 2,800,000 - ----------------------------------------------------------------------------------------------- $ 13,700,000 - ----------------------------------------------------------------------------------------------- Oklahoma--1.4% Muskogee Industrial Trust Pollution Control for Oklahoma Gas and Electric Company Project Series 1997 A (A-1+/VMIG1) $23,500,000 4.05% 01/07/99 $ 23,500,000 - ----------------------------------------------------------------------------------------------- Oregon--1.2% Oregon Veterans Welfare VRDN Series 73 H (A-1+/VMIG1) $19,300,000 4.10% 01/07/99 $ 19,300,000 - ----------------------------------------------------------------------------------------------- Pennsylvania--3.0% Commonwealth of Pennsylvania GO Bonds First Series 1994 Eagle Tax-Exempt Trust 943804/Class A COPS (AMBAC) (A-1C) $15,030,000 4.15% 01/07/99 $ 15,030,000 Philadelphia City TRANS Series A 1998-1999 (SP-1+/MIG1) 31,625,000 4.25 06/30/99 31,757,203 Delaware County IDA PCRB for BP Oil, Inc. Project Series 1985 (A-1+/P-1) 4,300,000 5.00 01/04/99 4,300,000 - ----------------------------------------------------------------------------------------------- $ 51,087,203 - ----------------------------------------------------------------------------------------------- South Carolina--1.7% Piedmont Municipal Power Agency Refunding RB Series 1996 C (MBIA) (A- 1+/VMIG1) $20,000,000 3.85% 01/07/99 $ 20,000,000 York County Floating/Fixed Rate PCRB Pooled Series 1984-North Carolina Electric Membership Corp. VRDN (NRU) (A-1+/VMIG1) 8,425,000 4.05 01/07/99 8,425,000 - ----------------------------------------------------------------------------------------------- $ 28,425,000 - ----------------------------------------------------------------------------------------------- Tennessee--0.1% Blount County IDB PCRB for Aluminum Company of America Series 1992 (A-1) $2,450,000 4.15% 01/07/99 $ 2,450,000 - ----------------------------------------------------------------------------------------------- Texas--13.2% City of San Antonio Electric & Gas System Revenue RB Series 1997 SG 104, SG 105 (A-1+C) $20,200,000 4.10% 01/07/99 $ 20,200,000
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- Texas (continued) Coastal Bend Health Facilities Development Corp. for Incarnate Word Health System RB Series 1998 B (AMBAC) (VMIG1) $10,100,000 4.05% 01/07/99 $ 10,100,000 Coastal Bend Health Facilities Development Corp. RB Series 1997 (First National Bank of Chicago) (VMIG1) 1,000,000 4.00 01/07/99 1,000,000 Gulf Coast Waste Disposal Authority PCRB for Monsanto Series 1996 (P-1) 5,300,000 4.15 01/07/99 5,300,000 Gulf Coast Waste Disposal Authority PCRB Series 1992 (Amoco Corp.) (A- 1+/VMIG1) 9,575,000 5.10 01/04/99 9,575,000 Harris County Health Facilities Development Corp. RB for Memorial Hospital System Series 1997 B (MBIA) (A-1+/VMIG1) 3,500,000 3.90 01/07/99 3,500,000 Harris County Health Facilities Development Corp. RB for Methodist Hospital Series 1994 (A-1+) 5,000,000 5.00 01/04/99 5,000,000 Harris County Health Facilities Development Corp. Unit Priced Demand Adjustable RB for St. Luke's Episcopal Hospital Series 1997 A (A-1+) 9,800,000 4.85 01/04/99 9,800,000 Harris County IDA PCRB for Exxon Corp. Series 1984 B (A-1+) 11,300,000 5.00 01/04/99 11,300,000 Harris County Toll Road VRDN Series 1994 E (A-1+/VMIG1) 10,700,000 3.95 01/07/99 10,700,000 Harris County Toll Road VRDN Series 1994 F (A-1+/VMIG1) 11,300,000 3.95 01/07/99 11,300,000 San Antonio Electric & Gas System CP Notes Series A (A-1+/P-1) 18,000,000 3.05 03/16/99 18,000,000 10,000,000 3.00 04/08/99 10,000,000 State of Texas TRANS Series 1997 B (A-1+/P-1) 14,000,000 2.95 07/28/99 14,000,000 14,000,000 2.95 08/23/99 14,000,000 State of Texas TRANS Series 1998 (SP-1+/MIG1) 56,000,000 4.50 08/31/99 56,539,392 Waco Health Facilities Development Corp. Variable Rate RB for Charity Obligation Group Series 1997 E (A-1+/VMIG1) 4,800,000 3.90 01/07/99 4,800,000 West Side Calhoun County Development Corp. PCRB Series 1985 (A-1+/P-1) 5,800,000 5.00 01/04/99 5,800,000 - ----------------------------------------------------------------------------------------------- $ 220,914,392 - -----------------------------------------------------------------------------------------------
- --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 22 Statement of Investments - -------------------------------------------------------------------------------- Financial Square Tax-Free Money Market Fund (continued) December 31, 1998 - --------------------------------------- ---------------------------------------
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- Utah--1.9% Central Utah Water Conservancy District GO Limited Tax Refunding Bonds Variable Rate Tender Option Bonds Series 1998 F (AMBAC) (A-1+/VMIG1) $ 6,000,000 3.95% 01/07/99 $ 6,000,000 Salt Lake County PCRB for Service Station/British Petroleum Series 1994 B (A-1+) 6,800,000 5.00 01/04/99 6,800,000 Utah State Board of Regents Auxiliary and Campus Facilities System RB Series 1997 A (A-1+/VMIG1) 18,690,000 3.75 01/07/99 18,690,000 - ----------------------------------------------------------------------------------------------- $ 31,490,000 - ----------------------------------------------------------------------------------------------- Virginia--3.5% Chesterfield County IDA PCRB for Philip Morris Companies, Inc. Series 1992 (A-1/P-1)(b) $14,700,000 4.10% 01/07/99 $ 14,700,000 Chesterfield County IDA PCRB for Virginia Electric & Power Series 1985 (A- 1/VMIG1) 8,000,000 3.10 01/15/99 8,000,000 Louisa PCRB for Virginia & Electric Power Series 1984 (A-1/VMIG1) 2,000,000 3.15 01/26/99 2,000,000 3,900,000 3.15 01/27/99 3,900,000 4,000,000 3.10 03/17/99 4,000,000 4,000,000 3.15 03/18/99 4,000,000 Roanoke City VRDN for Carilion Health System Hospital Series B (A-1/VMIG1) 6,600,000 5.00 01/04/99 6,600,000 York County IDA PCRB for Virginia Electric & Power Series 1985 (A-1/VMIG1) 5,600,000 3.10 01/15/99 5,600,000 9,000,000 3.00 02/01/99 9,000,000 - ----------------------------------------------------------------------------------------------- $ 57,800,000 - ----------------------------------------------------------------------------------------------- Washington--1.9% King County Limited Tax GO Bonds Series 1994 A Eagle Tax-Exempt Trust Series 97C 4701/Class A Certificates (A-1+C) $ 5,410,000 4.13% 01/07/99 $ 5,410,000 King County Sewer Revenue BANS CP Series A (A-1/P-1) 14,100,000 3.05 03/18/99 14,100,000 Washington Health Care Facilities Authority VRDN for Hutchinson Cancer Research Center Series 1991 A (Morgan Guaranty Trust LOC) (VMIG1) 6,075,000 5.30 01/04/99 6,075,000
Principal Interest Maturity Amortized Amount Rate Date Cost - --------------------------------------------------------------------------------------------- Washington (continued) Washington Health Care Facilities Authority VRDN for Fred Hutchinson Cancer Research Center Series 1996 (Morgan Guaranty Trust LOC) (VMIG1) $ 6,000,000 5.30% 01/04/99 $ 6,000,000 - --------------------------------------------------------------------------------------------- $ 31,585,000 - --------------------------------------------------------------------------------------------- Wisconsin--5.1% City of Milwaukee Short-Term School Order Notes Series 1998 B (SP-1+/MIG1) $48,500,000 4.25% 08/26/99 $ 48,719,616 Milwaukee IDRB Multi-Modal for Pharmacia & Upjohn, Inc. Series 1994 (P-1) 8,000,000 4.70 01/07/99 8,000,000 Milwaukee Metropolitan Sewage District GO Capital Purpose Bonds Series 1992 A Eagle Tax-Exempt Trust Series 944905 (A-1C) 10,300,000 4.15 01/07/99 10,300,000 State of Wisconsin Operating Notes Series 1998 (SP-1+/MIG1) 12,500,000 4.50 06/15/99 12,578,765 Wisconsin Health & Educational Facilities Authority VRDN for Wheaton Franciscan Services Series 1997 (Toronto Dominion Bank) (A-1+/VMIG1) 6,575,000 4.00 01/07/99 6,575,000 - --------------------------------------------------------------------------------------------- $ 86,173,381 - --------------------------------------------------------------------------------------------- Wyoming--1.6% Converse County PCRB for PacifiCorp Series 1994 (AMBAC) (A-1/VMIG1) $ 4,690,000 5.00% 01/04/99 $ 4,690,000 Kemmerer PCRB for Exxon Project Series 1984 (A-1+) 9,400,000 5.10 01/04/99 9,400,000 Lincoln County PCRB for PacifiCorp Project Series 1994 (AMBAC) (A-1/VMIG1) 4,100,000 5.00 01/04/99 4,100,000 Sweetwater PCRB for Idaho Power Co. Series 1996 C (A-1/VMIG1) 3,400,000 5.15 01/04/99 3,400,000 Uinta County PCRB for Chevron Project Series 1993 (P-1) 5,200,000 5.10 01/04/99 5,200,000 - --------------------------------------------------------------------------------------------- $ 26,790,000 - --------------------------------------------------------------------------------------------- Total Investments $1,706,482,755(c) - ---------------------------------------------------------------------------------------------
(a) Forward commitments. (b) A portion of this security is segregated for forward commitments. (c) The amount stated also represents aggregate cost for federal income tax purposes. - --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 23 - -------------------------------------------------------------------------------- - --------------------------------------- --------------------------------------- - -------------------------------------------------------------------------------- Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted notes, or, for floating rate securities, the current resent rate, which is based upon current interest rate indices. Maturity dates represent either the stated date on the security, the next interest reset date for floating rate securities, or the prerefunded date for those types of securities. Security ratings are unaudited. The percentages shown for each investment category reflect the value of investments in that category as a percentage of total net assets. - -------------------------------------------------------------------------------- Investment Abbreviations: AMBAC --Insured by American Municipal Bond Assurance Corp. COPS --Certificates of Participation FGIC --Insured by Financial Guaranty Insurance Co. FSA --Insured by Financial Security Assistance Co. GO --General Obligation IDA --Industrial Development Authority IDB --Industrial Development Bond IDRB --Industrial Development Revenue Bond LOC --Letter of Credit MBIA --Insured by Municipal Bond Investors Assurance MF Hsg. --Multi-Family Housing NRU LOC --Insured by National Rural Utilities Cooperative Finance Corp. PCRB --Pollution Control Revenue Bond RB --Revenue Bond TANS --Tax Anticipation Note TRANS --Tax Revenue Anticipation Note VRDN --Variable Rate Demand Note - ------------------------------------------------------------------------
- -------------------------------------------------------------------------------- - --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 24 Goldman Sachs Trust--Financial Square Funds - -------------------------------------------------------------------------------- Statements of Assets and Liabilities December 31, 1998 - --------------------------------------------------------------------------------
Prime Premium Obligations Money Market Money Market Fund Fund Fund ----------------------------------- Assets: Investment in securities, at value based on amortized cost $6,636,599,406 $6,085,098,505 $621,016,668 Cash 298,327 -- 80,748 Receivables: Interest 27,706,012 33,999,989 2,181,794 Reimbursement from advisor 450,137 294,071 100,349 Deferred organization expenses, net -- 3,394 -- Other assets 84,694 13,758 -- - ------------------------------------------------------------------------------- Total assets 6,665,138,576 6,119,409,717 623,379,559 - ------------------------------------------------------------------------------- Liabilities: Due to Bank -- 61,649 -- Payables: Investment securities purchased -- 100,000,000 -- Income distribution 31,259,879 32,340,715 2,339,046 Management fee 1,114,213 1,131,543 81,432 Accrued expenses and other liabilities 1,032,401 882,057 208,824 - ------------------------------------------------------------------------------- Total liabilities 33,406,493 134,415,964 2,629,302 - ------------------------------------------------------------------------------- Net Assets: Paid-in capital 6,631,732,083 5,984,993,753 620,750,257 Accumulated undistributed net investment income -- -- -- Accumulated net realized gain (loss) on investment transactions -- -- -- - ------------------------------------------------------------------------------- Net assets $6,631,732,083 $5,984,993,753 $620,750,257 - ------------------------------------------------------------------------------- Net asset value, offering and redemption price per share (net assets/shares outstanding) $1.00 $1.00 $1.00 - ------------------------------------------------------------------------------- Shares outstanding: FST shares 5,831,768,188 4,995,780,038 479,851,439 FST Preferred shares 132,561,671 93,218,173 107,516,022 FST Administration shares 331,197,822 399,471,260 13,727,829 FST Service shares 336,204,402 496,524,282 19,654,967 - ------------------------------------------------------------------------------- Total shares of beneficial interest outstanding, $.001 par value (unlimited number of shares authorized) 6,631,732,083 5,984,993,753 620,750,257 - -------------------------------------------------------------------------------
- --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 25 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Treasury Treasury Tax-Free Obligations Instruments Government Federal Money Market Fund Fund Fund Fund Fund - -------------------------------------------------------------------------- $5,400,245,358 $866,472,971 $3,092,844,155 $3,639,154,305 $1,706,482,755 3,332 27,082 14,592 4,901 762,747 11,441,856 -- 9,337,823 8,090,270 10,521,899 165,686 89,086 88,747 214,668 68,684 -- -- -- -- 8,495 18,445 1,084 -- 3,117 1,307 - -------------------------------------------------------------------------- 5,411,874,677 866,590,223 3,102,285,317 3,647,467,261 1,717,845,887 - -------------------------------------------------------------------------- -- -- -- -- -- -- -- 172,826,151 247,824,722 38,380,000 21,345,388 3,278,932 11,985,692 14,253,493 4,276,340 785,788 131,417 430,250 498,403 236,180 1,041,214 167,150 696,073 704,865 279,077 - -------------------------------------------------------------------------- 23,172,390 3,577,499 185,938,166 263,281,483 43,171,597 - -------------------------------------------------------------------------- 5,388,702,287 863,008,071 2,916,347,151 3,384,185,270 1,674,687,909 -- -- -- -- -- -- 4,653 -- 508 (13,619) - -------------------------------------------------------------------------- $5,388,702,287 $863,012,724 $2,916,347,151 $3,384,185,778 $1,674,674,290 - -------------------------------------------------------------------------- $1.00 $1.00 $1.00 $1.00 $1.00 - -------------------------------------------------------------------------- 3,521,332,237 822,206,369 1,563,870,902 2,346,253,833 1,456,015,068 285,244,600 1,616 245,628,297 26,723,880 20,882,055 1,080,496,197 23,673,636 407,360,955 690,084,049 146,800,755 501,629,253 17,126,450 699,486,997 321,123,508 50,990,031 - -------------------------------------------------------------------------- 5,388,702,287 863,008,071 2,916,347,151 3,384,185,270 1,674,687,909 - --------------------------------------------------------------------------
- --------------------------------------- --------------------------------------- 26 Goldman Sachs Trust--Financial Square Funds - -------------------------------------------------------------------------------- Statements of Operations For the Year Ended December 31, 1998 - --------------------------------------------------------------------------------
Prime Premium Obligations Money Market Money Market Fund Fund Fund ---------------------------------------- Investment income: Interest $318,336,858 $338,553,940 $22,796,216 - ------------------------------------------------------------------------------- Expenses: Management fees 11,710,577 12,445,772 843,317 Custodian fees 552,698 555,902 84,641 Registration fees 819,764 331,256 206,183 Professional fees 41,981 73,465 36,472 Trustee fees 35,073 36,175 10,931 Amortization of deferred organization expenses -- 9,038 -- Service share fees 1,167,952 2,478,988 49,926 Administration share fees 832,405 947,740 20,162 Preferred share fees 156,506 76,867 102,701 Other 165,425 107,752 20,694 - ------------------------------------------------------------------------------- Total expenses 15,482,381 17,062,955 1,375,027 Less--expenses reimbursed and fees waived by Goldman Sachs (2,956,784) (2,537,081) (534,957) - ------------------------------------------------------------------------------- Net expenses 12,525,597 14,525,874 840,070 - ------------------------------------------------------------------------------- Net investment income 305,811,261 324,028,066 21,956,146 - ------------------------------------------------------------------------------- Net realized gain on investment transactions 78,008 66,176 16,410 - ------------------------------------------------------------------------------- Net increase in net assets resulting from operations $305,889,269 $324,094,242 $21,972,556 - -------------------------------------------------------------------------------
- --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 27 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Treasury Treasury Tax-Free Obligations Instruments Government Federal Money Market Fund Fund Fund Fund Fund - ---------------------------------------------------------------------------- $251,765,564 $21,275,471 $150,324,658 $137,467,745 $48,952,424 - ---------------------------------------------------------------------------- 9,566,416 884,528 5,599,007 5,186,650 2,900,718 517,367 58,559 372,110 314,288 54,454 510,717 219,192 134,697 249,970 201,854 41,553 36,820 39,892 38,967 38,607 28,238 12,231 21,777 19,410 15,405 -- -- -- -- 15,585 2,019,235 97,057 3,225,643 1,312,961 254,984 2,373,198 49,689 845,644 951,754 360,347 307,604 -- 96,834 122,073 93,209 133,448 22,879 63,455 57,032 21,191 - ---------------------------------------------------------------------------- 15,497,776 1,380,955 10,399,059 8,253,105 3,956,354 (2,327,675) (449,425) (1,275,663) (1,269,935) (678,201) - ---------------------------------------------------------------------------- 13,170,101 931,530 9,123,396 6,983,170 3,278,153 - ---------------------------------------------------------------------------- 238,595,463 20,343,941 141,201,262 130,484,575 45,674,271 - ---------------------------------------------------------------------------- 1,450,576 174,690 -- 31,979 1,321 - ---------------------------------------------------------------------------- $240,046,039 $20,518,631 $141,201,262 $130,516,554 $45,675,592 - ----------------------------------------------------------------------------
- --------------------------------------- --------------------------------------- 28 Goldman Sachs Trust--Financial Square Funds - -------------------------------------------------------------------------------- Statements of Changes in Net Assets For the Year Ended December 31, 1998 - --------------------------------------------------------------------------------
Prime Premium Obligations Money Market Money Market Fund Fund Fund ---------------------------------------- From operations: Net investment income $ 305,811,261 $ 324,028,066 $ 21,956,146 Net realized gain on investment transactions 78,008 66,176 16,410 - --------------------------------------------------------------------------------- Net increase in net assets resulting from operations 305,889,269 324,094,242 21,972,556 - --------------------------------------------------------------------------------- Distributions to shareholders from: Net investment income FST shares (269,081,520) (276,370,684) (15,650,407) FST Preferred shares (8,232,389) (4,076,565) (5,432,663) FST Administration shares (17,131,415) (19,556,691) (410,201) FST Service shares (11,435,814) (24,091,684) (479,285) - --------------------------------------------------------------------------------- Total distributions to shareholders (305,881,138) (324,095,624) (21,972,556) - --------------------------------------------------------------------------------- From share transactions (at $1.00 per share): Proceeds from sales of shares 57,969,401,996 69,898,690,078 5,229,951,088 Reinvestment of dividends and distributions 93,909,532 166,197,933 14,446,374 Cost of shares repurchased (55,869,833,965) (68,984,229,619) (4,844,668,494) - --------------------------------------------------------------------------------- Net increase in net assets resulting from share transactions 2,193,477,563 1,080,658,392 399,728,968 - --------------------------------------------------------------------------------- Total increase 2,193,485,694 1,080,657,010 399,728,968 Net assets: Beginning of year 4,438,246,389 4,904,336,743 221,021,289 - --------------------------------------------------------------------------------- End of year $ 6,631,732,083 $ 5,984,993,753 $ 620,750,257 - --------------------------------------------------------------------------------- Accumulated undistributed net investment income -- -- -- - ---------------------------------------------------------------------------------
- --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements. 29 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Treasury Treasury Tax-Free Obligations Instruments Government Federal Money Market Fund Fund Fund Fund Fund - ---------------------------------------------------------------------------------------- $ 238,595,463 $ 20,343,941 $ 141,201,262 $ 130,484,575 $ 45,674,271 1,450,576 174,690 -- 31,979 1,321 - ---------------------------------------------------------------------------------------- 240,046,039 20,518,631 141,201,262 130,516,554 45,675,592 - ---------------------------------------------------------------------------------------- (157,673,844) (18,729,601) (87,893,105) (92,448,326) (36,931,756) (47,202,665) (78) (4,985,314) (6,428,582) (2,953,491) (19,083,866) (927,699) (17,131,280) (19,097,019) (4,375,262) (16,085,664) (857,978) (31,191,563) (12,542,759) (1,413,762) - ---------------------------------------------------------------------------------------- (240,046,039) (20,515,356) (141,201,262) (130,516,686) (45,674,271) - ---------------------------------------------------------------------------------------- 53,000,555,348 3,317,001,578 29,790,708,579 14,894,751,480 9,696,660,958 91,114,922 8,446,401 37,971,285 64,289,412 19,443,237 (51,218,122,026) (2,983,195,546) (29,278,022,826) (13,748,692,419) (9,161,617,389) - ---------------------------------------------------------------------------------------- 1,873,548,244 342,252,433 550,657,038 1,210,348,473 554,486,806 - ---------------------------------------------------------------------------------------- 1,873,548,244 342,255,708 550,657,038 1,210,348,341 554,488,127 3,515,154,043 520,757,016 2,365,690,113 2,173,837,437 1,120,186,163 - ---------------------------------------------------------------------------------------- $ 5,388,702,287 $ 863,012,724 $ 2,916,347,151 $ 3,384,185,778 $ 1,674,674,290 - ---------------------------------------------------------------------------------------- -- -- -- -- -- - ----------------------------------------------------------------------------------------
- --------------------------------------- --------------------------------------- 30 Goldman Sachs Trust--Financial Square Funds - -------------------------------------------------------------------------------- Statements of Changes in Net Assets For the Year Ended December 31, 1997 - --------------------------------------------------------------------------------
Prime Premium Obligations Money Market Money Market Fund Fund Fund(a) -------------------------------------------------- From operations: Net investment income $ 277,979,593 $ 266,229,854 $ 4,194,052 Net realized gain (loss) on investment transactions 15,992 32,849 -- - -------------------------------------------------------------------------------- Net increase in net assets resulting from operations 277,995,585 266,262,703 4,194,052 - -------------------------------------------------------------------------------- Distributions to shareholders from: Net investment income FST shares (247,361,553) (231,700,902) (3,890,656) FST Preferred shares (9,751,263) (3,010,280) (7,210) FST Administration shares (13,824,313) (16,410,842) (295,011) FST Service shares (7,042,464) (15,107,830) (1,175) Net realized gain on investment transactions FST shares (22,695) (24,966) -- FST Preferred shares (752) (571) -- FST Administration shares (1,302) (31) -- FST Service shares (464) (6,853) -- - -------------------------------------------------------------------------------- Total distributions to shareholders (278,004,806) (266,262,275) (4,194,052) - -------------------------------------------------------------------------------- From share transactions (at $1.00 per share): Proceeds from sales of shares 53,179,415,600 68,053,947,094 1,075,863,230 Reinvestment of dividends and distributions 112,453,328 134,114,443 1,495,718 Cost of shares repurchased (53,213,589,524) (66,241,742,997) (856,337,659) - -------------------------------------------------------------------------------- Net increase in net assets resulting from share transactions 78,279,404 1,946,318,540 221,021,289 - -------------------------------------------------------------------------------- Total increase 78,270,183 1,946,318,968 221,021,289 Net assets: Beginning of period 4,359,976,206 2,958,017,775 -- - -------------------------------------------------------------------------------- End of period $ 4,438,246,389 $ 4,904,336,743 $ 221,021,289 - -------------------------------------------------------------------------------- Accumulated undistributed net investment income -- -- -- - --------------------------------------------------------------------------------
(a) Commencement dates of operations for the Premium Money Market, Treasury Instruments and the Federal Fund were August 1, 1997, March 3, 1997 and February 28, 1997, respectively. - --------------------------------------- --------------------------------------- The accompanying notes are an integral part of these financial statements 31 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Treasury Treasury Tax-Free Obligations Instruments Government Federal Money Market Fund Fund(a) Fund Fund(a) Fund - --------------------------------------------------------------------------------------- $ 165,098,980 $ 11,388,062 $ 110,081,406 $ 50,895,735 $ 28,536,346 300,712 89,851 127,727 (7,673) (2,081) - --------------------------------------------------------------------------------------- 165,399,692 11,477,913 110,209,133 50,888,062 28,534,265 - --------------------------------------------------------------------------------------- (112,020,839) (10,293,085) (70,362,803) (35,377,629) (23,828,347) (5,711,597) (45) (1,492,230) (3,504,242) (542,008) (35,669,978) (62,666) (13,365,067) (7,278,709) (3,161,663) (11,696,566) (1,032,266) (24,861,306) (4,726,842) (1,004,328) (253,465) (78,370) (94,763) -- -- (9,681) (1) (1,310) -- -- (92,228) (459) (15,668) -- -- (25,376) (9,643) (42,470) -- -- - --------------------------------------------------------------------------------------- (165,479,730) (11,476,535) (110,235,617) (50,887,422) (28,536,346) - --------------------------------------------------------------------------------------- 30,901,418,469 1,886,752,702 20,842,203,467 7,175,698,490 6,856,129,085 61,924,789 3,001,270 30,237,427 17,286,075 8,395,593 (30,543,252,110) (1,368,998,334) (19,734,267,186) (5,019,147,768) (6,285,421,492) - --------------------------------------------------------------------------------------- 420,091,148 520,755,638 1,138,173,708 2,173,836,797 579,103,186 - --------------------------------------------------------------------------------------- 420,011,110 520,757,016 1,138,147,224 2,173,837,437 579,101,105 3,095,142,933 -- 1,227,542,889 -- 541,085,058 - --------------------------------------------------------------------------------------- $ 3,515,154,043 $ 520,757,016 $ 2,365,690,113 $ 2,173,837,437 $ 1,120,186,163 - --------------------------------------------------------------------------------------- -- -- -- $ 8,313 -- - ---------------------------------------------------------------------------------------
- --------------------------------------- --------------------------------------- 32 Goldman Sachs Trust--Financial Square Funds - -------------------------------------------------------------------------------- Notes to Financial Statements December 31, 1998 - --------------------------------------- --------------------------------------- 1. Organization The Goldman Sachs Trust (the "Trust") is a Delaware business trust registered under the Investment Company Act of 1940 (as amended) as an open-end management investment company. The Trust includes the Financial Square Funds, collectively "the Funds" or individually a "Fund". Financial Square consists of nine diversified funds: Prime Obligations, Money Market, Premium Money Market, Treasury Obligations, Treasury Instruments, Government, Federal, Tax-Free Money Market and Municipal Money Market (inactive as of December 31, 1998). The Financial Square Funds offer four classes of shares: FST shares, FST Preferred shares, FST Administration shares and FST Service shares. The investment objective of the Funds is to maximize current income to the extent consistent with the preservation of capital and maintenance of liquidity. In addition, the Tax-Free Money Market Fund seeks to provide shareholders with a high level of income exempt from federal income tax. 2. Significant Accounting Policies The following is a summary of significant accounting policies consistently followed by the Funds. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts. A. Investment Valuation-- Each Fund uses the amortized-cost method for valuing portfolio securities, which approximates market value. Under this method, all investments purchased at a discount or premium are valued by amortizing the difference between the original purchase price and maturity value of the issue over the period to maturity. B. Interest Income-- Interest income is determined on the basis of interest accrued, premium amortized and discount earned. C. Federal Taxes-- It is each Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute each year substantially all investment company taxable and tax-exempt income to shareholders. Accordingly, no federal tax provisions are required. The characterization of distributions to shareholders for financial reporting purposes is determined in accordance with federal income tax rules. Therefore, the source of the Funds' distributions may be shown in the accompanying financial statements as either from or in excess of net investment income or net realized gain on investment transactions, or from paid-in capital, depending on the type of book/tax differences that may exist. At December 31, 1998 (tax year-end), the following fund had a capital loss carryforward for U.S. Federal tax purposes of approximately:
Years of Fund Amount Expiration ---- ------- ---------- Tax-Free Money Market....................................... $11,000 2003-2005
This amount is available to be carried forward to offset future capital gains to the extent permitted by applicable laws or regulations. D. Deferred Organization Expenses-- Organization-related costs are amortized on a straight-line basis over a period of five years. E. Expenses-- Expenses incurred by the Funds that do not specifically relate to an individual fund are generally allocated to the Funds based on the nature of the expense. Shareholders of FST Preferred, FST Administration and FST Service shares bear all expenses and fees paid to service organizations for their services with respect to such shares. - --------------------------------------- --------------------------------------- 33 - -------------------------------------------------------------------------------- - --------------------------------------- --------------------------------------- 3. Agreements Goldman Sachs Asset Management ("GSAM"), a separate operating division of Goldman, Sachs & Co. ("Goldman Sachs"), acts as investment adviser (the "Adviser") pursuant to an Investment Management Agreement (the "Agreement"). Under the Agreement, GSAM, subject to general supervision by the Trust's Board of Trustees, manages the Funds' portfolios and administers each Fund's business affairs, including providing facilities. As compensation for the services rendered under the Agreement and the assumption of the expenses related thereto, GSAM is entitled to a fee, computed daily and payable monthly, at an annual rate equal to .205% of each Fund's average daily net assets. For the year ended December 31, 1998, GSAM has voluntarily agreed to waive a portion of its management fee. In addition, GSAM has limited certain of each of the Fund's expenses (excluding management fees, service organization fees, taxes, interest, brokerage commissions, litigation, indemnification and other extraordinary expenses) to the extent that such expenses exceed .01% per annum of each Fund's average daily net assets. Goldman Sachs serves as Transfer Agent and Distributor of shares of the Funds pursuant to Transfer Agent and Distribution Agreements and receives no separate fee. The following chart outlines the fee waivers and expense reimbursements for the year ended December 31, 1998 (in thousands):
Management Fees Expense Fund Waived Reimbursements Total - ------------------------------------------------------------------------------------------ Prime Obligations $2,000 $957 $2,957 - ------------------------------------------------------------------------------------------ Money Market 2,125 412 2,537 - ------------------------------------------------------------------------------------------ Premium Money Market 224 311 535 - ------------------------------------------------------------------------------------------ Treasury Obligations 1,633 695 2,328 - ------------------------------------------------------------------------------------------ Treasury Instruments 151 298 449 - ------------------------------------------------------------------------------------------ Government 956 320 1,276 - ------------------------------------------------------------------------------------------ Federal 886 384 1,270 - ------------------------------------------------------------------------------------------ Tax-Free Money Market 495 183 678
4. Preferred, Administration and Service Plans The Funds have adopted Preferred, Administration and Service Plans to compensate service organizations for providing varying levels of account administration and shareholder liaison services to their customers who are beneficial owners of such shares. The Preferred, Administration and Service Plans provide for compensation to the service organizations in an amount up to .10%, .25% and .50% (on an annualized basis), respectively, of the average daily net asset value of the respective shares. - --------------------------------------- --------------------------------------- 34 Goldman Sachs Trust--Financial Square Funds - -------------------------------------------------------------------------------- Notes to Financial Statements (continued) December 31, 1998 - --------------------------------------- --------------------------------------- 5.Line of Credit Facility The Funds participate in a $250,000,000 uncommitted, unsecured revolving line of credit facility to be used solely for temporary or emergency purposes. Under the most restrictive arrangement, each Fund must own securities having a market value in excess of 300% of the total bank borrowings. The interest rate on the borrowings is based on the Federal Funds rate. During the year ended December 31, 1998, the Funds did not have any borrowings under this facility. 6.Repurchase Agreements During the term of a repurchase agreement, the value of the underlying securities, including accrued interest, is required to equal or exceed the value of the repurchase agreement. The underlying securities for all repurchase agreements are held in safekeeping at a custodian. 7.Joint Repurchase Agreement Accounts The Funds, together with other registered investment companies having management agreements with GSAM or its affiliates, transfer uninvested cash balances into joint accounts, the daily aggregate balances of which are invested in one or more repurchase agreements. At December 31, 1998, the Prime Obligations, Money Market, Premium Money Market, Treasury Obligations and Government Funds had undivided interests in the repurchase agreements held in the following joint account, which equaled $201,300,000, $36,200,000, $182,800,000, $1,678,200,000 and $314,000,000 in principal amount, respectively. At December 31, 1998, the repurchase agreements held in this joint account were fully collateralized by U.S. Treasury obligations.
Principal Interest Maturity Amortized Amount Rate Date Cost - ----------------------------------------------------------------------------------------------- Donaldson, Lufkin & Jenrette, Inc. $1,285,000,000 4.95% 01/04/1999 $1,285,000,000 Goldman, Sachs & Co. 500,000,000 4.75 01/04/1999 500,000,000 SBC Warburg Dillon Read Corp. 500,000,000 4.70 01/04/1999 500,000,000 1,098,400,000 4.75 01/04/1999 1,098,400,000 - ----------------------------------------------------------------------------------------------- Total Joint Repurchase Agreement Account $3,383,400,000 - -----------------------------------------------------------------------------------------------
At December 31, 1998, the Prime Obligations, Premium Money Market, and Government Funds had undivided interests in the repurchase agreements in the following joint account II, which equaled $700,000,000 and $50,000,000, and $200,000,000 in principal amount, respectively. At December 31, 1998, the following repurchase agreements held in the following joint account were fully collateralized by Federal Agency obligations.
Principal Interest Maturity Amortized Amount Rate Date Cost - --------------------------------------------------------------------------------------------- ABN/AMRO, Inc. $120,000,000 5.15% 01/04/1999 $ 120,000,000 Deutsche Bank 77,300,000 5.07 01/04/1999 77,300,000 Donaldson, Lufkin & Jenrette, Inc. 150,000,000 4.95 01/04/1999 150,000,000 J.P. Morgan Securities, Inc. 700,000,000 4.75 01/04/1999 700,000,000 Morgan Stanley & Co. 200,000,000 4.95 01/04/1999 200,000,000 NationsBanc Montgomery Securities LLC 125,000,000 5.15 01/04/1999 125,000,000 - --------------------------------------------------------------------------------------------- Total Joint Repurchase Agreement Account II $1,372,300,000 - ---------------------------------------------------------------------------------------------
- --------------------------------------- --------------------------------------- 35 - -------------------------------------------------------------------------------- - --------------------------------------- --------------------------------------- 8.Other Matters Pursuant to an SEC exemptive order, certain of the Funds may enter into certain principal transactions, including repurchase agreements, with Goldman, Sachs & Co. subject to certain annual limitations as follows: 25% of eligible security transactions, as defined, and 10% of repurchase agreement transactions. 9. Certain Reclassifications In accordance with Statement of Position 93-2, the Financial Square Federal Fund has reclassified $8,313 from accumulated undistributed net investment income to accumulated net realized loss. This reclassification has no impact on the net asset value of the Fund and is designed to present the Fund's capital accounts on a tax basis. - --------------------------------------- --------------------------------------- 36 Goldman Sachs Trust--Financial Square Funds - -------------------------------------------------------------------------------- Notes to Financial Statements (continued) December 31, 1998 - -------------------------------------------------------------------------------- 10. Summary of Share Transactions (at $1.00 per share) Share activity for the year ended December 31, 1998 is as follows:
Prime Premium Obligations Money Market Money Market Fund Fund Fund - ------------------------------------------------------------------------------- FST shares: Shares sold 50,577,781,681 64,642,205,884 4,885,235,788 Reinvestment of dividends and distributions 81,013,084 145,091,154 9,694,829 Shares repurchased (48,694,767,051) (64,138,032,706) (4,633,271,570) ----------------------------------------- 1,964,027,714 649,264,332 261,659,047 - ------------------------------------------------------------------------------- FST Preferred shares: Shares sold 1,635,375,108 587,335,211 212,622,508 Reinvestment of dividends and distributions 1,663,959 3,560,753 4,477,152 Shares repurchased (1,657,247,424) (517,936,393) (110,141,465) ----------------------------------------- (20,208,357) 72,959,571 106,958,195 - ------------------------------------------------------------------------------- FST Administration shares: Shares sold 2,386,485,745 2,258,106,370 37,942,427 Reinvestment of dividends and distributions 5,232,944 13,668,515 128,617 Shares repurchased (2,302,131,386) (2,093,556,998) (25,799,913) ----------------------------------------- 89,587,303 178,217,887 12,271,131 - ------------------------------------------------------------------------------- FST Service shares: Shares sold 3,369,759,462 2,411,042,613 94,150,365 Reinvestment of dividends and distributions 5,999,545 3,877,511 145,776 Shares repurchased (3,215,688,104) (2,234,703,522) (75,455,546) ----------------------------------------- 160,070,903 180,216,602 18,840,595 - ------------------------------------------------------------------------------- Net increase in shares 2,193,477,563 1,080,658,392 399,728,968 - -------------------------------------------------------------------------------
- --------------------------------------- --------------------------------------- 37 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Treasury Treasury Tax-Free Obligations Instruments Government Federal Money Market Fund Fund Fund Fund Fund - ----------------------------------------------------------------------------------- 38,811,128,138 3,155,786,943 19,929,403,199 10,287,288,538 8,343,229,377 53,825,326 7,667,006 28,357,386 45,213,214 17,430,024 (37,561,525,035) (2,837,666,325) (19,872,424,728) (9,111,928,825) (7,844,065,473) - ----------------------------------------------------------------------------------- 1,303,428,429 325,787,624 85,335,857 1,220,572,927 516,593,928 - ----------------------------------------------------------------------------------- 2,747,117,320 -- 1,063,864,036 138,883,456 451,367,441 6,885,153 77 2,648,231 7,188,094 155,091 (2,714,118,870) -- (828,030,762) (313,722,647) (465,792,140) - ----------------------------------------------------------------------------------- 39,883,603 77 238,481,505 (167,651,097) (14,269,608) - ----------------------------------------------------------------------------------- 5,954,832,820 69,117,817 5,103,623,628 2,165,279,603 557,825,919 16,115,116 770,968 4,155,641 6,022,375 1,389,127 (5,629,346,838) (50,374,164) (5,000,220,220) (2,106,551,874) (515,464,054) - ----------------------------------------------------------------------------------- 341,601,098 19,514,621 107,559,049 64,750,104 43,750,992 - ----------------------------------------------------------------------------------- 5,487,477,070 92,096,818 3,693,817,716 2,303,299,883 344,238,221 14,289,327 8,350 2,810,027 5,865,729 468,995 (5,313,131,283) (95,155,057) (3,577,347,116) (2,216,489,073) (336,295,722) - ----------------------------------------------------------------------------------- 188,635,114 (3,049,889) 119,280,627 92,676,539 8,411,494 - ----------------------------------------------------------------------------------- 1,873,548,244 342,252,433 550,657,038 1,210,348,473 554,486,806 - -----------------------------------------------------------------------------------
- --------------------------------------- --------------------------------------- 38 Goldman Sachs Trust--Financial Square Funds - -------------------------------------------------------------------------------- Notes to Financial Statements (continued) December 31, 1998 - -------------------------------------------------------------------------------- 10. Summary of Share Transactions (at $1.00 per share) (continued) Share activity for the year ended December 31, 1997 is as follows:
Prime Premium Obligations Money Market Money Market Fund Fund Fund(a) - ------------------------------------------------------------------------------ FST shares: Shares sold 47,147,215,061 63,982,789,001 1,031,854,202 Reinvestment of dividends and distributions 103,377,234 118,914,805 1,491,071 Shares repurchased (47,284,643,891) (62,295,549,107) (815,152,881) ---------------------------------------- (34,051,596) 1,806,154,699 218,192,392 - ------------------------------------------------------------------------------ FST Preferred shares: Shares sold 1,624,299,212 754,498,086 553,233 Reinvestment of dividends and distributions 1,010,173 1,861,300 4,594 Shares repurchased (1,599,668,091) (753,611,334) -- ---------------------------------------- 25,641,294 2,748,052 557,827 - ------------------------------------------------------------------------------ FST Administration shares: Shares sold 2,052,177,068 2,237,080,367 42,641,449 Reinvestment of dividends and distributions 4,016,672 11,388,582 27 Shares repurchased (2,030,483,474) (2,192,980,303) (41,184,778) ---------------------------------------- 25,710,266 55,488,646 1,456,698 - ------------------------------------------------------------------------------ FST Service shares: Shares sold 2,355,724,259 1,079,579,640 814,346 Reinvestment of dividends and distributions 4,049,249 1,949,756 26 Shares repurchased (2,298,794,068) (999,602,253) -- ---------------------------------------- 60,979,440 81,927,143 814,372 - ------------------------------------------------------------------------------ Net increase in shares 78,279,404 1,946,318,540 221,021,289 - ------------------------------------------------------------------------------
(a) Commencement date of operations for the Premium Money Market, Treasury Instruments and the Federal Fund was August 1, 1997, March 3, 1997 and February 28, 1997, respectively. - --------------------------------------- --------------------------------------- 39 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Treasury Treasury Tax-Free Obligations Instruments Government Federal Money Market Fund Fund(a) Fund Fund(a) Fund - ----------------------------------------------------------------------------------- 21,293,469,586 1,757,063,242 16,068,538,976 4,332,722,729 6,019,992,055 39,794,793 2,990,503 25,573,363 11,815,388 6,844,739 (21,406,328,023) (1,263,635,000) (15,474,321,199) (3,218,857,211) (5,528,265,772) - ----------------------------------------------------------------------------------- (73,063,644) 496,418,745 619,791,140 1,125,680,906 498,571,022 - ----------------------------------------------------------------------------------- 1,389,183,384 1,500 141,301,549 300,365,996 271,642,865 1,089,957 39 164,952 2,470,479 87,192 (1,191,548,937) -- (134,432,139) (108,461,498) (265,308,952) - ----------------------------------------------------------------------------------- 198,724,404 1,539 7,034,362 194,374,977 6,421,105 - ----------------------------------------------------------------------------------- 5,271,440,356 9,051,015 2,286,537,497 1,298,319,389 271,268,796 12,077,349 5,093 2,533,048 1,136,485 865,271 (5,081,525,991) (4,897,093) (2,134,371,808) (674,121,929) (220,746,099) - ----------------------------------------------------------------------------------- 201,991,714 4,159,015 154,698,737 625,333,945 51,387,968 - ----------------------------------------------------------------------------------- 2,947,325,143 120,636,945 2,345,825,445 1,244,406,778 293,225,369 8,962,690 5,635 1,966,064 1,747,321 598,391 (2,863,849,159) (100,466,241) (1,991,142,040) (1,017,707,130) (271,100,669) - ----------------------------------------------------------------------------------- 92,438,674 20,176,339 356,649,469 228,446,969 22,723,091 - ----------------------------------------------------------------------------------- 420,091,148 520,755,638 1,138,173,708 2,173,836,797 579,103,186 - -----------------------------------------------------------------------------------
- --------------------------------------- --------------------------------------- 40 Goldman Sachs Trust--Financial Square Funds - ------------------------------------------------------------------------------- Financial Highlights Selected Data for a Share Outstanding Throughout Each Period Prime Obligations Fund - -------------------------------------------------------------------------------
Net Ratio of net Net asset Net asset assets at Ratio of net investment value at Net Distributions value at end expenses to income to beginning investment to end Total of period average net average net of period income(a) shareholders of period return(b) (in 000's) assets assets -------------------------------------------------------------------------------------------- For the Years Ended December 31, - -------------------------------- 1998-FST shares.......... $1.00 $0.05 $(0.05) $1.00 5.55% $5,831,773 0.18% 5.39% 1998-FST Pre- ferred shares... 1.00 0.05 (0.05) 1.00 5.45 132,558 0.28 5.26 1998-FST Admin- istration shares.......... 1.00 0.05 (0.05) 1.00 5.29 331,196 0.43 5.14 1998-FST Service shares.......... 1.00 0.05 (0.05) 1.00 5.03 336,205 0.68 4.89 - -------------------------------------------------------------------------------------------------------------- 1997-FST shares.......... 1.00 0.05 (0.05) 1.00 5.60 3,867,739 0.18 5.46 1997-FST Pre- ferred shares... 1.00 0.05 (0.05) 1.00 5.50 152,767 0.28 5.38 1997-FST Admin- istration shares.......... 1.00 0.05 (0.05) 1.00 5.34 241,607 0.43 5.22 1997-FST Service shares.......... 1.00 0.05 (0.05) 1.00 5.08 176,133 0.68 4.97 - -------------------------------------------------------------------------------------------------------------- 1996-FST shares.......... 1.00 0.05 (0.05) 1.00 5.41 3,901,797 0.18 5.29 1996-FST Pre- ferred Shares (commenced May 1).............. 1.00 0.03 (0.03) 1.00 5.28(c) 127,126 0.28(c) 5.19(c) 1996-FST Admin- istration shares.......... 1.00 0.05 (0.05) 1.00 5.14 215,898 0.43 5.06 1996-FST Service shares.......... 1.00 0.05 (0.05) 1.00 4.88 115,114 0.68 4.78 - -------------------------------------------------------------------------------------------------------------- 1995-FST shares.......... 1.00 0.06 (0.06) 1.00 6.02 3,295,791 0.18 5.86 1995-FST Admin- istration shares.......... 1.00 0.06 (0.06) 1.00 5.75 147,894 0.43 5.59 1995-FST Service shares.......... 1.00 0.05 (0.05) 1.00 5.49 65,278 0.68 5.33 - -------------------------------------------------------------------------------------------------------------- For the Period Ended December 31,(d) - ------------------------------------ 1994-FST shares.......... 1.00 0.04 (0.04) 1.00 4.38(c) 2,774,849 0.18(c) 4.38(c) 1994-FST Pre- ferred Shares... 1.00 0.04 (0.04) 1.00 4.12(c) 66,113 0.43(c) 4.18(c) 1994-FST Service shares.......... 1.00 0.04 (0.04) 1.00 3.86(c) 41,372 0.68(c) 3.98(c) - -------------------------------------------------------------------------------------------------------------- For the Years Ended January 31, - ------------------------------- 1994-FST shares.......... 1.00 0.03 (0.03) 1.00 3.18 1,831,413 0.17 3.11 1994-FST Admin- istration shares.......... 1.00 0.03 (0.03) 1.00 2.92 35,250 0.42 2.86 1994-FST Service shares.......... 1.00 0.03 (0.03) 1.00 2.66 14,001 0.67 2.61 Ratios assuming no waiver of fees and no expense limitations ------------------------ Ratio of net Ratio of investment expenses to income to average net average net assets assets ------------------------------------------------------------------------------------------ For the Years Ended December 31, - -------------------------------- 1998-FST shares.......... 0.24% 5.33% 1998-FST Pre- ferred shares... 0.34 5.20 1998-FST Admin- istration shares.......... 0.49 5.08 1998-FST Service shares.......... 0.74 4.83 - -------------------------------------------------------------------------------------------------------------- 1997-FST shares.......... 0.23 5.41 1997-FST Pre- ferred shares... 0.33 5.33 1997-FST Admin- istration shares.......... 0.48 5.17 1997-FST Service shares.......... 0.73 4.92 - -------------------------------------------------------------------------------------------------------------- 1996-FST shares.......... 0.23 5.24 1996-FST Pre- ferred Shares (commenced May 1).............. 0.33(c) 5.14(c) 1996-FST Admin- istration shares.......... 0.48 5.01 1996-FST Service shares.......... 0.73 4.73 - -------------------------------------------------------------------------------------------------------------- 1995-FST shares.......... 0.22 5.82 1995-FST Admin- istration shares.......... 0.47 5.55 1995-FST Service shares.......... 0.72 5.29 - -------------------------------------------------------------------------------------------------------------- For the Period Ended December 31,(d) - ------------------------------------ 1994-FST shares.......... 0.24(c) 4.32(c) 1994-FST Pre- ferred Shares... 0.49(c) 4.12(c) 1994-FST Service shares.......... 0.74(c) 3.92(c) - -------------------------------------------------------------------------------------------------------------- For the Years Ended January 31, - ------------------------------- 1994-FST shares.......... 0.25 3.03 1994-FST Admin- istration shares.......... 0.50 2.78 1994-FST Service shares.......... 0.75 2.53
- ---- (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 and a complete redemption of the investment at the net asset value at the end of the period. (c) Annualized. (d) The information presented reflects eleven months of operations due to a change in fiscal year end. This change was caused by the reorganization of the funds as a series of Goldman Sachs Trust (formerly Goldman Sachs Money Market Trust). - ------------------------------------------------------------------------------- The accompanying notes are an integral part of these financial statements. 41 Goldman Sachs Trust--Financial Square Funds - ------------------------------------------------------------------------------- Financial Highlights (continued) Selected Data for a Share Outstanding Throughout Each Period Money Market Fund - -------------------------------------------------------------------------------
Net Ratio of net Net asset Net asset assets at Ratio of net investment value at Net Distributions value at end expenses to income to beginning investment to end Total of period average net average net of period income(a) shareholders of period return(b) (in 000's) assets assets ------------------------------------------------------------------------------------------- For the Years Ended December 31, - -------------------------------- 1998-FST shares.......... $1.00 $0.05 $(0.05) $1.00 5.55% $4,995,782 0.18% 5.40% 1998-FST Pre- ferred shares... 1.00 0.05 (0.05) 1.00 5.45 93,218 0.28 5.30 1998-FST Admin- istration shares.......... 1.00 0.05 (0.05) 1.00 5.29 399,474 0.43 5.16 1998-FST Service shares.......... 1.00 0.05 (0.05) 1.00 5.03 496,520 0.68 4.86 - -------------------------------------------------------------------------------------------------------------- 1997-FST shares.......... 1.00 0.06 (0.06) 1.00 5.63 4,346,519 0.18 5.50 1997-FST Pre- ferred shares... 1.00 0.05 (0.05) 1.00 5.53 20,258 0.28 5.44 1997-FST Admin- istration shares.......... 1.00 0.05 (0.05) 1.00 5.37 221,256 0.43 5.26 1997-FST Service shares.......... 1.00 0.05 (0.05) 1.00 5.11 316,304 0.68 4.99 - -------------------------------------------------------------------------------------------------------------- 1996-FST shares.......... 1.00 0.05 (0.05) 1.00 5.45 2,540,366 0.18 5.33 1996-FST Pre- ferred shares (commenced May 1).............. 1.00 0.03 (0.03) 1.00 5.31(c) 17,510 0.28(c) 5.23(c) 1996-FST Admin- istration shares.......... 1.00 0.05 (0.05) 1.00 5.19 165,766 0.43 5.04 1996-FST Service shares.......... 1.00 0.05 (0.05) 1.00 4.93 234,376 0.68 4.84 - -------------------------------------------------------------------------------------------------------------- 1995-FST Shares.......... 1.00 0.06 (0.06) 1.00 6.07 2,069,197 0.15 5.89 1995-FST Admin- istration shares.......... 1.00 0.06 (0.06) 1.00 5.80 137,412 0.40 5.61 1995-FST Service shares (commenced July 14)........ 1.00 0.02 (0.02) 1.00 5.41(c) 4,219 0.65(c) 4.93(c) - -------------------------------------------------------------------------------------------------------------- For the Period Ended December 31, - --------------------------------- 1994-FST shares (commenced May 18)............. 1.00 0.03 (0.03) 1.00 4.91(c) 862,971 0.11(c) 4.88(c) 1994-FST Admin- istration shares (commenced May 20)............. 1.00 0.03 (0.03) 1.00 4.65(c) 66,560 0.36(c) 4.82(c) Ratios assuming no waiver of fees and no expense limitations ------------------------ Ratio of net Ratio of investment expenses to income to average net average net assets assets ------------------------------------------------------------------------------------------- For the Years Ended December 31, - -------------------------------- 1998-FST shares.......... 0.23% 5.35% 1998-FST Pre- ferred shares... 0.33 5.25 1998-FST Admin- istration shares.......... 0.48 5.11 1998-FST Service shares.......... 0.73 4.81 - -------------------------------------------------------------------------------------------------------------- 1997-FST shares.......... 0.23 5.45 1997-FST Pre- ferred shares... 0.33 5.39 1997-FST Admin- istration shares.......... 0.48 5.21 1997-FST Service shares.......... 0.73 4.94 - -------------------------------------------------------------------------------------------------------------- 1996-FST shares.......... 0.23 5.28 1996-FST Pre- ferred shares (commenced May 1).............. 0.33(c) 5.18(c) 1996-FST Admin- istration shares.......... 0.48 4.99 1996-FST Service shares.......... 0.73 4.79 - -------------------------------------------------------------------------------------------------------------- 1995-FST Shares.......... 0.23 5.81 1995-FST Admin- istration shares.......... 0.48 5.53 1995-FST Service shares (commenced July 14)........ 0.73(c) 4.85(c) - -------------------------------------------------------------------------------------------------------------- For the Period Ended December 31, - --------------------------------- 1994-FST shares (commenced May 18)............. 0.25(c) 4.74(c) 1994-FST Admin- istration shares (commenced May 20)............. 0.50(c) 4.68(c)
- ---- (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 and a complete redemption of the investment at the net asset value at the end of the period. (c) Annualized. - ------------------------------------------------------------------------------- The accompanying notes are an integral part of these financial statements. 42 Goldman Sachs Trust--Financial Square Funds - ------------------------------------------------------------------------------- Financial Highlights (continued) Selected Data for a Share Outstanding Throughout Each Period Premium Money Market Fund - -------------------------------------------------------------------------------
Net assets at Ratio of net Net asset Net asset end Ratio of net investment value at Net Distributions value at of period expenses to income to beginning investment to end Total (in average net average net of period income(a) shareholders of period return(b) 000's) assets assets ------------------------------------------------------------------------------------------ For the Year Ended December 31, - ------------------------------- 1998-FST shares.......... $1.00 $0.05 $(0.05) $1.00 5.55% $479,851 0.16% 5.38% 1998-FST Pre- ferred shares... 1.00 0.05 (0.05) 1.00 5.45 107,517 0.26 5.29 1998-FST Admin- istration shares.......... 1.00 0.05 (0.05) 1.00 5.29 13,728 0.41 5.08 1998-FST Service shares.......... 1.00 0.05 (0.05) 1.00 5.03 19,655 0.66 4.79 - ------------------------------------------------------------------------------------------------------------ For the Period Ended December 31, - --------------------------------- 1997-FST shares (commenced August 1)....... 1.00 0.02 (0.02) 1.00 5.73(c) 218,192 0.08(c) 5.59(c) 1997-FST Preferred Shares (commenced August 1)....... 1.00 0.02 (0.02) 1.00 5.62(c) 558 0.18(c) 5.50(c) 1997-FST Administration shares (commenced August 1)....... 1.00 0.02 (0.02) 1.00 5.47(c) 1,457 0.33(c) 5.33(c) 1997-FST Service shares (commenced August 1)....... 1.00 0.02 (0.02) 1.00 5.20(c) 814 0.58(c) 5.17(c) Ratios assuming no waiver of fees and no expense limitations ------------------------ Ratio of net Ratio of investment expenses to income to average net average net assets assets ------------------------------------------------------------------------------------------ For the Year Ended December 31, - ------------------------------- 1998-FST shares.......... 0.29% 5.25% 1998-FST Pre- ferred shares... 0.39 5.16 1998-FST Admin- istration shares.......... 0.54 4.95 1998-FST Service shares.......... 0.79 4.66 - ------------------------------------------------------------------------------------------------------------ For the Period Ended December 31, - --------------------------------- 1997-FST shares (commenced August 1)....... 0.43(c) 5.24(c) 1997-FST Preferred Shares (commenced August 1)....... 0.53(c) 5.15(c) 1997-FST Administration shares (commenced August 1)....... 0.68(c) 4.98(c) 1997-FST Service shares (commenced August 1)....... 0.93(c) 4.82(c)
- ---- (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 and a complete redemption of the investment at the net asset value at the end of the period. (c) Annualized. - ------------------------------------------------------------------------------- The accompanying notes are an integral part of these financial statements. 43 Goldman Sachs Trust--Financial Square Funds - ------------------------------------------------------------------------------- Financial Highlights (continued) Selected Data for a Share Outstanding Throughout Each Period Treasury Obligations Fund - -------------------------------------------------------------------------------
Net Ratio of net Net asset Net asset assets at Ratio of net investment value at Net Distributions value at end expenses to income to beginning investment to end Total of period average net average net of period income(a) shareholders of period return(b) (in 000's) assets assets ------------------------------------------------------------------------------------------- For the Years Ended December 31, - -------------------------------- 1998-FST shares.......... $1.00 $0.05 $(0.05) $1.00 5.40% $3,521,389 0.18% 5.22% 1998-FST Pre- ferred shares... 1.00 0.05 (0.05) 1.00 5.29 285,240 0.28 5.20 1998-FST Admin- istration shares.......... 1.00 0.05 (0.05) 1.00 5.14 1,080,454 0.43 4.94 1998-FST Service shares.......... 1.00 0.05 (0.05) 1.00 4.87 501,619 0.68 4.69 - --------------------------------------------------------------------------------------------------------------- 1997-FST shares.......... 1.00 0.05 (0.05) 1.00 5.50 2,217,943 0.18 5.36 1997-FST Pre- ferred shares... 1.00 0.05 (0.05) 1.00 5.40 245,355 0.28 5.32 1997-FST Admin- istration shares.......... 1.00 0.05 (0.05) 1.00 5.24 738,865 0.43 5.12 1997-FST Service shares.......... 1.00 0.05 (0.05) 1.00 4.98 312,991 0.68 4.87 - --------------------------------------------------------------------------------------------------------------- 1996-FST shares.......... 1.00 0.05 (0.05) 1.00 5.35 2,291,051 0.18 5.22 1996-FST Pre- ferred shares (commenced May 1).......... 1.00 0.03 (0.03) 1.00 5.24(c) 46,637 0.28(c) 5.11(c) 1996-FST Admin- istration shares ................ 1.00 0.05 (0.05) 1.00 5.09 536,895 0.43 4.97 1996-FST Service shares ......... 1.00 0.05 (0.05) 1.00 4.83 220,560 0.68 4.72 - --------------------------------------------------------------------------------------------------------------- 1995-FST shares ................ 1.00 0.06 (0.06) 1.00 5.96 1,587,715 0.18 5.73 1995-FST Admin- istration shares ................ 1.00 0.06 (0.06) 1.00 5.69 283,186 0.43 5.47 1995-FST Service shares ......... 1.00 0.05 (0.05) 1.00 5.43 139,117 0.68 5.21 - --------------------------------------------------------------------------------------------------------------- For the Period Ended December 31,(d) - ------------------------------------ 1994-FST shares ......... 1.00 0.04 (0.04) 1.00 4.23(c) 958,196 0.18(c) 4.13(c) 1994-FST Admin- istration shares ......... 1.00 0.04 (0.04) 1.00 3.97(c) 82,124 0.43(c) 4.24(c) 1994-FST Service shares ......... 1.00 0.03 (0.03) 1.00 3.71(c) 81,162 0.68(c) 3.82(c) - --------------------------------------------------------------------------------------------------------------- For the Year Ended January 31, - ------------------------------ 1994-FST shares.......... 1.00 0.03 (0.03) 1.00 3.11 812,420 0.17 3.01 1994-FST Admin- istration shares ................ 1.00 0.03 (0.03) 1.00 2.85 24,485 0.42 2.76 1994-FST Service shares ......... 1.00 0.03 (0.03) 1.00 2.60 35,656 0.67 2.51 Ratios assuming no waiver of fees and no expense limitations ------------------------ Ratio of net Ratio of investment expenses to income to average net average net assets assets ------------------------------------------------------------------------------------------- For the Years Ended December 31, - -------------------------------- 1998-FST shares.......... 0.23% 5.17% 1998-FST Pre- ferred shares... 0.33 5.15 1998-FST Admin- istration shares.......... 0.48 4.89 1998-FST Service shares.......... 0.73 4.64 - --------------------------------------------------------------------------------------------------------------- 1997-FST shares.......... 0.23 5.31 1997-FST Pre- ferred shares... 0.33 5.27 1997-FST Admin- istration shares.......... 0.48 5.07 1997-FST Service shares.......... 0.73 4.82 - --------------------------------------------------------------------------------------------------------------- 1996-FST shares.......... 0.24 5.16 1996-FST Pre- ferred shares (commenced May 1).......... 0.34(c) 5.05(c) 1996-FST Admin- istration shares ................ 0.49 4.91 1996-FST Service shares ......... 0.74 4.66 - --------------------------------------------------------------------------------------------------------------- 1995-FST shares ................ 0.23 5.68 1995-FST Admin- istration shares ................ 0.48 5.42 1995-FST Service shares ......... 0.73 5.16 - --------------------------------------------------------------------------------------------------------------- For the Period Ended December 31,(d) - ------------------------------------ 1994-FST shares ......... 0.25(c) 4.06(c) 1994-FST Admin- istration shares ......... 0.50(c) 4.17(c) 1994-FST Service shares ......... 0.75(c) 3.75(c) - --------------------------------------------------------------------------------------------------------------- For the Year Ended January 31, - ------------------------------ 1994-FST shares.......... 0.24 2.94 1994-FST Admin- istration shares ................ 0.49 2.69 1994-FST Service shares ......... 0.74 2.44
- ---- (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 and a complete redemption of the investment at the net asset value at the end of the period. (c) Annualized. (d) The information presented reflects eleven months of operations due to a change in fiscal year end. This change was caused by the reorganization of the funds as a series of Goldman Sachs Trust (formerly Goldman Sachs Money Market Trust). - ------------------------------------------------------------------------------- The accompanying notes are an integral part of these financial statements. 44 Goldman Sachs Trust--Financial Square Funds - ------------------------------------------------------------------------------- Financial Highlights (continued) Selected Data for a Share Outstanding Throughout Each Period Treasury Instruments Fund - -------------------------------------------------------------------------------
Net assets at Ratio of net Net asset Net asset end Ratio of net investment value at Net Distributions value at of period expenses to income to beginning investment to end Total (in average net average net of period income(a) shareholders of period return(b) 000's) assets assets ------------------------------------------------------------------------------------------- For the Year Ended December 31, - ------------------------------- 1998-FST shares.......... $1.00 $0.05 $(0.05) $1.00 5.05% $822,207 0.18% 4.74% 1998-FST Pre- ferred shares... 1.00 0.05 (0.05) 1.00 4.94 2 0.28 4.68 1998-FST Admin- istration shares.......... 1.00 0.05 (0.05) 1.00 4.79 23,676 0.43 4.62 1998-FST Service shares.......... 1.00 0.04 (0.04) 1.00 4.53 17,128 0.68 4.37 - -------------------------------------------------------------------------------------------------------------- For the Period Ended December 31, - --------------------------------- 1997-FST shares (commenced March 3)........ 1.00 0.04 (0.04) 1.00 5.25(c) 496,419 0.18(c) 5.09(c) 1997-FST Pre- ferred shares (commenced May 30)......... 1.00 0.03 (0.03) 1.00 5.13(c) 2 0.28(c) 5.00(c) 1997-FST Admin- istration shares (commenced April 1)........ 1.00 0.04 (0.04) 1.00 4.99(c) 4,159 0.43(c) 4.84(c) 1997-FST Service shares (com- menced March 5)........ 1.00 0.04 (0.04) 1.00 4.71(c) 20,177 0.68(c) 4.62(c) Ratios assuming no waiver of fees and no expense limitations ------------------------ Ratio of net Ratio of investment expenses to income to average net average net assets assets ------------------------------------------------------------------------------------------- For the Year Ended December 31, - ------------------------------- 1998-FST shares.......... 0.29% 4.63% 1998-FST Pre- ferred shares... 0.39 4.57 1998-FST Admin- istration shares.......... 0.54 4.51 1998-FST Service shares.......... 0.79 4.26 - -------------------------------------------------------------------------------------------------------------- For the Period Ended December 31, - --------------------------------- 1997-FST shares (commenced March 3)........ 0.29(c) 4.98(c) 1997-FST Pre- ferred shares (commenced May 30)......... 0.39(c) 4.89(c) 1997-FST Admin- istration shares (commenced April 1)........ 0.54(c) 4.73(c) 1997-FST Service shares (com- menced March 5)........ 0.79(c) 4.51(c)
- ---- (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 and a complete redemption of the investment at the net asset value at the end of the period. (c) Annualized. - ------------------------------------------------------------------------------- The accompanying notes are an integral part of these financial statements. 45 Goldman Sachs Trust--Financial Square Funds - ------------------------------------------------------------------------------- Financial Highlights (continued) Selected Data for a Share Outstanding Throughout Each Period Government Fund - -------------------------------------------------------------------------------
Net Ratio of net Net asset Net asset assets at Ratio of net investment value at Net Distributions value at end expenses to income to beginning investment to end Total of period average net average net of period income(a) shareholders of period return(b) (in 000's) assets assets -------------------------------------------------------------------------------------------------- For the Years Ended December 31, - -------------------------------- 1998-FST shares.......... $1.00 $0.05 $(0.05) $1.00 5.46% $1,563,875 0.18% 5.32% 1998-FST Pre- ferred shares... 1.00 0.05 (0.05) 1.00 5.36 245,628 0.28 5.15 1998-FST Admin- istration shares.......... 1.00 0.05 (0.05) 1.00 5.20 407,363 0.43 5.06 1998-FST Service shares.......... 1.00 0.05 (0.05) 1.00 4.94 699,481 0.68 4.83 - ----------------------------------------------------------------------------------------------------------------------- 1997-FST shares.......... 1.00 0.05 (0.05) 1.00 5.54 1,478,539 0.18 5.41 1997-FST Pre- ferred shares... 1.00 0.05 (0.05) 1.00 5.43 7,147 0.28 5.34 1997-FST Admin- istration shares.......... 1.00 0.05 (0.05) 1.00 5.28 299,804 0.43 5.15 1997-FST Service shares.......... 1.00 0.05 (0.05) 1.00 5.02 580,200 0.68 4.91 - ----------------------------------------------------------------------------------------------------------------------- 1996-FST shares.......... 1.00 0.05 (0.05) 1.00 5.38 858,769 0.18 5.25 1996-FST Pre- ferred shares (commenced May 1).............. 1.00 0.03 (0.03) 1.00 5.26(c) 112 0.28(c) 5.14(c) 1996-FST Admin- istration shares.......... 1.00 0.05 (0.05) 1.00 5.12 145,108 0.43 5.01 1996-FST Service shares.......... 1.00 0.05 (0.05) 1.00 4.86 223,554 0.68 4.74 - ----------------------------------------------------------------------------------------------------------------------- 1995-FST shares.......... 1.00 0.06 (0.06) 1.00 6.00 743,884 0.18 5.81 1995-FST Admin- istration shares.......... 1.00 0.06 (0.06) 1.00 5.74 82,386 0.43 5.54 1995-FST Service shares (com- menced May 16).. 1.00 0.03 (0.03) 1.00 5.40(c) 14,508 0.68(c) 5.08(c) - ----------------------------------------------------------------------------------------------------------------------- For the Period Ended December 31,(d) - ------------------------------------ 1994-FST shares.......... 1.00 0.04 (0.04) 1.00 4.36(c) 258,350 0.15(c) 4.64(c) 1994-FST Admin- istration shares.......... 1.00 0.04 (0.04) 1.00 4.10(c) 54,253 0.40(c) 4.67(c) - ----------------------------------------------------------------------------------------------------------------------- For the Period Ended January 31, - -------------------------------- 1993-FST shares (commenced April 6).............. 1.00 0.03 (0.03) 1.00 3.14(c) 44,697 0.08(c) 3.10(c) 1993-FST Administration shares (commenced September 1).. 1.00 0.01 (0.01) 1.00 2.87(c) 14,126 0.35(c) 2.85(c) Ratios assuming no waiver of fees and no expense limitations ------------------------ Ratio of net Ratio of investment expenses to income to average net average net assets assets -------------------------------------------------------------------------------------------------- For the Years Ended December 31, - -------------------------------- 1998-FST shares.......... 0.23% 5.27% 1998-FST Pre- ferred shares... 0.33 5.10 1998-FST Admin- istration shares.......... 0.48 5.01 1998-FST Service shares.......... 0.73 4.78 - ----------------------------------------------------------------------------------------------------------------------- 1997-FST shares.......... 0.24 5.35 1997-FST Pre- ferred shares... 0.34 5.28 1997-FST Admin- istration shares.......... 0.49 5.09 1997-FST Service shares.......... 0.74 4.85 - ----------------------------------------------------------------------------------------------------------------------- 1996-FST shares.......... 0.24 5.19 1996-FST Pre- ferred shares (commenced May 1).............. 0.34(c) 5.08(c) 1996-FST Admin- istration shares.......... 0.49 4.95 1996-FST Service shares.......... 0.74 4.68 - ----------------------------------------------------------------------------------------------------------------------- 1995-FST shares.......... 0.24 5.75 1995-FST Admin- istration shares.......... 0.49 5.48 1995-FST Service shares (com- menced May 16).. 0.74(c) 5.02(c) - ----------------------------------------------------------------------------------------------------------------------- For the Period Ended December 31,(d) - ------------------------------------ 1994-FST shares.......... 0.25(c) 4.54(c) 1994-FST Admin- istration shares.......... 0.50(c) 4.57(c) - ----------------------------------------------------------------------------------------------------------------------- For the Period Ended January 31, - -------------------------------- 1993-FST shares (commenced April 6).............. 0.59(c) 2.59(c) 1993-FST Administration shares (commenced September 1).. 0.76(c) 2.44(c)
- ---- (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 and complete redemption of the investment at the net asset value at the end of the period. (c) Annualized. (d) The information presented reflects eleven months of operations due to a change in fiscal year end. This change was caused by the reorganization of the funds as a series of Goldman Sachs Trust (formerly Goldman Sachs Money Market Trust). - ------------------------------------------------------------------------------- The accompanying notes are an integral part of these financial statements. 46 Goldman Sachs Trust--Financial Square Funds - ------------------------------------------------------------------------------- Financial Highlights (continued) Selected Data for a Share Outstanding Throughout Each Period Federal Fund - -------------------------------------------------------------------------------
Net Ratio of net Net Asset Net asset assets at Ratio of net investment value at Net Distributions value at end expenses to income to beginning investment to end Total of period average net average net of period income(a) shareholders of period return(b) (in 000's) assets assets ------------------------------------------------------------------------------------------- For the Year Ended December 31, - ------------------------------- 1998-FST shares.......... $1.00 $0.05 $(0.05) $1.00 5.41% $2,346,254 0.18% 5.24% 1998-FST Preferred shares.......... 1.00 0.05 (0.05) 1.00 5.31 26,724 0.28 5.20 1998-FST Administration shares.......... 1.00 0.05 (0.05) 1.00 5.15 690,084 0.43 5.02 1998-FST Service shares.......... 1.00 0.05 (0.05) 1.00 4.89 321,124 0.68 4.78 - ------------------------------------------------------------------------------------------------------------- For the Period Ended December 31, - --------------------------------- 1997-FST shares (commenced February 28).... 1.00 0.05 (0.05) 1.00 5.51(c) 1,125,681 0.18(c) 5.39(c) 1997-FST Preferred shares (commenced May 30)............. 1.00 0.03 (0.03) 1.00 5.43(c) 194,375 0.28(c) 5.26(c) 1997-FST Administration shares (commenced April 1).............. 1.00 0.04 (0.04) 1.00 5.27(c) 625,334 0.43(c) 5.15(c) 1997-FST Service shares (commenced March 25)............. 1.00 0.04 (0.04) 1.00 5.00(c) 228,447 0.68(c) 4.78(c) Ratios assuming no waiver of fees and no expense limitations ------------------------ Ratio of net Ratio of investment expenses to income to average net average net assets assets ------------------------------------------------------------------------------------------- For the Year Ended December 31, - ------------------------------- 1998-FST shares.......... 0.24% 5.18% 1998-FST Preferred shares.......... 0.34 5.14 1998-FST Administration shares.......... 0.49 4.96 1998-FST Service shares.......... 0.74 4.72 - ------------------------------------------------------------------------------------------------------------- For the Period Ended December 31, - --------------------------------- 1997-FST shares (commenced February 28).... 0.27(c) 5.30(c) 1997-FST Preferred shares (commenced May 30)............. 0.37(c) 5.17(c) 1997-FST Administration shares (commenced April 1).............. 0.52(c) 5.06(c) 1997-FST Service shares (commenced March 25)............. 0.77(c) 4.69(c)
- ---- (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 and a complete redemption of the investment at the net asset value at the end of the period. (c) Annualized. - ------------------------------------------------------------------------------- The accompanying notes are an integral part of these financial statements. 47 Goldman Sachs Trust--Financial Square Funds - ------------------------------------------------------------------------------- Financial Highlights (continued) Selected Data for a Share Outstanding Throughout Each Period Tax-Free Money Market Fund - -------------------------------------------------------------------------------
Net Ratio of net Net asset Net asset assets at Ratio of net investment value at Net Distributions value at end expenses to income to beginning investment to end Total of period average net average net of period income(a) shareholders of period return(b) (in 000's) assets assets ------------------------------------------------------------------------------------------ For the Years Ended December 31, - -------------------------------- 1998-FST shares.......... $1.00 $0.03 $(0.03) $1.00 3.34% $1,456,002 0.18% 3.28% 1998-FST Pre- ferred shares... 1.00 0.03 (0.03) 1.00 3.24 20,882 0.28 3.17 1998-FST Admin- istration shares.......... 1.00 0.03 (0.03) 1.00 3.08 146,800 0.43 3.04 1998-FST Service shares.......... 1.00 0.03 (0.03) 1.00 2.83 50,990 0.68 2.77 - -------------------------------------------------------------------------------------------------------------- 1997-FST shares.......... 1.00 0.04 (0.04) 1.00 3.54 939,407 0.18 3.50 1997-FST Pre- ferred shares... 1.00 0.03 (0.03) 1.00 3.43 35,152 0.28 3.39 1997-FST Admin- istration shares.......... 1.00 0.03 (0.03) 1.00 3.28 103,049 0.43 3.27 1997-FST Service shares.......... 1.00 0.03 (0.03) 1.00 3.02 42,578 0.68 3.01 - -------------------------------------------------------------------------------------------------------------- 1996-FST shares.......... 1.00 0.03 (0.03) 1.00 3.39 440,838 0.18 3.35 1996-FST Pre- ferred shares (commenced May 1).............. 1.00 0.02 (0.02) 1.00 3.30(c) 28,731 0.28(c) 3.26(c) 1996-FST Admin- istration shares ................ 1.00 0.03 (0.03) 1.00 3.13 51,661 0.43 3.10 1996-FST Service shares.......... 1.00 0.03 (0.03) 1.00 2.88 19,855 0.68 2.85 - -------------------------------------------------------------------------------------------------------------- 1995-FST shares.......... 1.00 0.04 (0.04) 1.00 3.89 448,367 0.14 3.81 1995-FST Admin- istration shares.......... 1.00 0.04 (0.04) 1.00 3.63 20,939 0.39 3.54 1995-FST Service shares.......... 1.00 0.03 (0.03) 1.00 3.38 19,860 0.64 3.32 - -------------------------------------------------------------------------------------------------------------- For the Period Ended December 31, - --------------------------------- 1994-FST shares (commenced July 19)............. 1.00 0.02 (0.02) 1.00 3.41(c) 183,570 0.07(c) 3.42(c) 1994-FST Admin- istration shares (commenced Au- gust 1)......... 1.00 0.01 (0.01) 1.00 3.19(c) 2,042 0.32(c) 3.25(c) 1994-FST Service shares (com- menced September 23)............. 1.00 0.01 (0.01) 1.00 3.11(c) 2,267 0.57(c) 3.32(c) Ratios assuming no waiver of fees and no expense limitations ------------------------ Ratio of net Ratio of investment expenses to income to average net average net assets assets ------------------------------------------------------------------------------------------ For the Years Ended December 31, - -------------------------------- 1998-FST shares.......... 0.23% 3.23% 1998-FST Pre- ferred shares... 0.33 3.12 1998-FST Admin- istration shares.......... 0.48 2.99 1998-FST Service shares.......... 0.73 2.72 - -------------------------------------------------------------------------------------------------------------- 1997-FST shares.......... 0.24 3.44 1997-FST Pre- ferred shares... 0.34 3.33 1997-FST Admin- istration shares.......... 0.49 3.21 1997-FST Service shares.......... 0.74 2.95 - -------------------------------------------------------------------------------------------------------------- 1996-FST shares.......... 0.23 3.30 1996-FST Pre- ferred shares (commenced May 1).............. 0.33(c) 3.21(c) 1996-FST Admin- istration shares ................ 0.48 3.05 1996-FST Service shares.......... 0.73 2.80 - -------------------------------------------------------------------------------------------------------------- 1995-FST shares.......... 0.24 3.71 1995-FST Admin- istration shares.......... 0.49 3.44 1995-FST Service shares.......... 0.74 3.22 - -------------------------------------------------------------------------------------------------------------- For the Period Ended December 31, - --------------------------------- 1994-FST shares (commenced July 19)............. 0.31(c) 3.18(c) 1994-FST Admin- istration shares (commenced Au- gust 1)......... 0.56(c) 3.01(c) 1994-FST Service shares (com- menced September 23)............. 0.81(c) 3.08(c)
- ---- (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 and a complete redemption of the investment at the net asset value at the end of the period. (c) Annualized. - ------------------------------------------------------------------------------- The accompanying notes are an integral part of these financial statements. 48 Goldman Sachs Trust--Financial Square Funds - -------------------------------------------------------------------------------- Report of Independent Public Accountants - --------------------------------------- --------------------------------------- To the Shareholders and Board of Trustees of Goldman Sachs Trust--Financial Square Funds: We have audited the accompanying statements of assets and liabilities of Goldman Sachs Trust--Financial Square Funds (a Delaware Business Trust comprising the Prime Obligations, Money Market, Premium Money Market, Treasury Obligations, Treasury Instruments, Government, Federal and Tax-Free Money Market Funds), including the statements of investments, as of December 31, 1998, and the related statements of operations and the statements of changes in net assets and the financial highlights for the periods presented. These financial statements and the financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and the financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and the financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 1998 by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective Funds constituting Goldman Sachs Trust--Financial Square Funds as of December 31, 1998, the results of their operations and the changes in their net assets and the financial highlights for the periods presented, in conformity with generally accepted accounting principles. ARTHUR ANDERSEN LLP Boston, Massachusetts February 12, 1999 49 - -------------------------------------------------------------------------------- - --------------------------------------- --------------------------------------- - -------------------------------------------------------------------------------- This Annual Report is authorized for distribution to prospective investors only when preceded or accompanied by a Goldman Sachs Trust-Financial Square Funds Prospectus which contains facts concerning each Fund's objectives and policies, management, expenses and other information. - -------------------------------------------------------------------------------- 50 TRUSTEES Ashok N. Bakhru, Chairman David B. Ford Douglas C. Grip John P. McNulty Mary P. McPherson Alan A. Shuch Jackson W. Smart, Jr. William H. Springer Richard P. Strubel OFFICERS Douglas C. Grip, President Jesse H. Cole, Vice President James A. Fitzpatrick, Vice President Anne E. Marcel, Vice President Nancy L. Mucker, Vice President John M. Perlowski, Treasurer Michael J. Richman, Secretary Howard B. Surloff, Assistant Secretary Valerie A. Zondorak, Assistant Secretary GOLDMAN SACHS Investment Adviser, Distributor and Transfer Agent Goldman Sachs Funds One New York Plaza, 41st Floor New York, NY 10004 [LOGO] Goldman Sachs -----END PRIVACY-ENHANCED MESSAGE-----