-----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, D1V357l58VsmZ0aULCOK5uV9qeICKSdKloZvvOa7TNxBQoDZHnVao+ZQByCvqc1h g4Nc4B8Dns+TraPzo2sOrQ== 0000950130-99-006032.txt : 19991028 0000950130-99-006032.hdr.sgml : 19991028 ACCESSION NUMBER: 0000950130-99-006032 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990831 FILED AS OF DATE: 19991027 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: 99734935 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 JAPANESE EQUITY FUND Goldman Sachs Funds - -------------------------------------------------------------------------------- JAPANESE EQUITY FUND ANNUAL REPORT AUGUST 31, 1999 - -------------------------------------------------------------------------------- [GRAPHIC APPEARS HERE] Capital growth potential through a diversified portfolio of Japanese stocks ------- Goldman Sachs ------- Goldman Sachs Japanese Equity Fund Market Overview Dear Shareholder, During the period under review, stronger than expected economic growth and encouraging corporate earnings forecasts set the stage for a dramatic market rebound. . Japanese Equities Surged -- The Japanese stock market advanced strongly during the period under review, against the backdrop of improved investor sentiment. In February, the government's stance on monetary policy was relaxed further. This eased concerns about continued interest rate hikes that had dampened stock prices since late 1998. Corporate restructuring also gathered momentum as a large number of Japanese companies announced plans to strategically realign business units with a stronger focus on return on capital. Then, first quarter GDP growth numbers came in much higher than expected. This helped to strengthen the market's expectations for economic recovery, which significantly improved the supply/demand balance in the stock market, further pushing up stock prices. Additionally, corporate earnings forecasts have been encouragingly strong, beating previous estimates. Profits are expected to rise some 10%, even on smaller revenues -- indicating that restructuring benefits will enhance earnings. . Market Outlook: Cautiously Optimistic About Further Strong Gains -- While this year's market performance has been impressive, we believe there are reasons to take a cautious approach going forward. On the positive side, corporate restructuring and the outlook for stronger profits could help to drive the market forward. Thus far, however, the rally has been relatively narrow, as exporters and high-tech companies have seen a disproportionate share of the gain. Stock price valuations have also triggered concerns from some investors. And while individual investors have begun to take a renewed interest in the market, overseas institutions continue to be the driving force behind the surge. Finally, the yen rose sharply toward the end of the reporting period. This could hurt exporters, as it makes Japanese products more expensive overseas. . Special Note: Reporting Period Change -- The fiscal year-end of your Fund has been changed to August 31. Previously, your Fund had a January 31 fiscal year-end. This will serve as the Fund's annual report. This change does not affect your Fund's investment objective or strategy in any way. We encourage you to maintain your long term investment program and we look forward to serving your investment needs in the years to come. Sincerely, /s/David B. Ford /s/John P. McNulty David B. Ford John P. McNulty Co-Head, Goldman Sachs Co-Head, Goldman Sachs Asset Management Asset Management September 3, 1999 - ----------------------- . NOT FDIC INSURED . May Lose Value . No Bank Guarantee - ----------------------- GOLDMAN SACHS JAPANESE EQUITY FUND Fund Basics as of August 31, 1999 Assets Under Management $64.8 Million Number of Holdings 67 NASDAQ Symbols Class A Shares GSJAX Class B Shares GSJBX Class C Shares GSJCX Institutional Shares GSJIX Service Shares GSJSX - -------------------------------------------------------------------------------- PERFORMANCE REVIEW - -------------------------------------------------------------------------------- Fund Total Return TOPIX January 31, 1999-August 31, 1999 (without sales charge)/1/ (USD)/2/ - -------------------------------------------------------------------------------- Class A 46.84% 37.38% Class B 46.33 37.38 Class C 46.41 37.38 Institutional 47.40 37.38 Service 46.92 37.38 - -------------------------------------------------------------------------------- /1/The net asset value represents the net assets of the Fund (ex-dividend) divided by the total number of shares. The Fund's performance assumes the reinvestment of dividends and other distributions. /2/The Tokyo Price Index (TOPIX) figures do not reflect any fees or expenses. In addition, investors cannot invest directly in the unmanaged Index.
- ----------------------------------------------------------------------------------------------- STANDARDIZED TOTAL RETURNS/3/ - ----------------------------------------------------------------------------------------------- For the period ended 6/30/99 Class A Class B Class C Institutional Service - ----------------------------------------------------------------------------------------------- Last 6 months 18.55% 20.00% 24.07% 25.77% 25.23% One Year 32.47 34.53 38.74 41.09 40.07 Since inception 26.11 28.50 31.94 33.15 32.21 (5/1/98) - -----------------------------------------------------------------------------------------------
/3/The Standardized Total Returns are average annual total returns or cumulative total returns (only if the performance period is one year or less) as of the most recent calendar quarter-end. They assume reinvestment all distributions at net asset value. These returns reflect a maximum initial sales charge of 5.5% for Class A shares and the assumed deferred sales charge for Class B shares (5% maximum declining to 0% after six years) and the assumed deferred sales charge for Class C shares (1% if redeemed within 12 months of purchase). Because Institutional and Service shares do not involve a sales charge, such a charge is not applied to their Standardized Total Returns. - -------------------------------------------------------------------------------- TOP 10 HOLDINGS AS OF 8/31/99 - -------------------------------------------------------------------------------- Holding % of Total Net Assets Line of Business - -------------------------------------------------------------------------------- Nippon Telephone & Telegraph Corp. 3.4% Telecommunications NTT Mobile Communications Network, Inc. 3.2 Telecommunications Fujitsu Ltd. 2.3 Computer Hardware Mitsui Mining & Smelting 2.3 Mining Bank of Tokyo-Mitsubishi 2.3 Banking Takefuji Corp. 2.2 Financial Services Ricoh Co. Ltd. 2.2 Computer Hardware Yamanouchi Pharmaceutical 2.1 Drugs Nintendo Co. Ltd. 2.1 Entertainment TDK Corp. 2.1 Computer Hardware - -------------------------------------------------------------------------------- The top 10 holdings may not be representative of the Fund's future investments. Total return figures represent past performance and do not indicate future results, which will vary. The investment return and principal value of an investment will fluctuate and, therefore, an investor's shares, when redeemed, may be worth more or less than their original cost. Performance reflects expense limitations in effect. In their absence, performance would be reduced. 1 Goldman sachs Japanese Equity Fund Performance Overview Dear Shareholder, We are pleased to report on the performance of the Goldman Sachs Japanese Equity Fund for the seven-month period ended August 31, 1999. This reporting period is based on the Fund's new August 31st fiscal year-end. Performance Review Over the seven-month period ended August 31, 1999, the Fund's Class A, B, C, Institutional and Service shares generated cumulative total returns, without sales charges, of 46.84%, 46.33%, 46.41%, 47.40%, and 46.92%, respectively. These figures compare favorably to the 37.38% cumulative total return of the Fund's benchmark, the Tokyo Price Index (TOPIX). The portfolio's outperformance was primarily due to successful stock selection. In particular, a number of the Fund's holdings of undervalued, medium-size stocks performed quite strongly. This occurred as their relatively solid fundamentals were substantiated as their earnings met or exceeded expectations. Sector Allocation As of August 31, 1999, the Fund held large positions in Services, Industrial Machinery, and Electronic Parts. It is important to note that the Fund's sector weightings are the result of our bottom-up stock selection process, rather than sector-based decisions. Portfolio Highlights . NTT Mobile Comm. -- NTT Mobile Comm. is a dominant player in Japan's fast growing cellular market. The company listed on the exchange in October 1998, as part of the government's attempt to deregulate the industry. The company's earnings before depreciation costs are expected to double over the next seven years, at a much faster pace than most domestic companies. In addition, its share price appreciated substantially during the reporting period, outperforming the overall market. . Takefuji -- Takefuji is a leading consumer loan company in Japan. The company boasts the highest profitability among its peers, based on its strict control on loan credit and a strong balance sheet. These strong fundamentals helped Takefuji to substantially outperform the market during the reporting period. 2 Goldman Sachs Japanese Equity Fund Outlook For the time being, we remain cautious on the market, given the recent rally, volatility in the yen and the concerns of equity valuations. Based on the current price levels, the market seems to have discounted much of the earnings recovery expected to materialize in late 1999. And, if the current strength in the yen persists, corporate earnings could be revised down. On a positive note, many companies are in the process of implementing restructuring plans that they announced several months back -- the benefits of which could improve earnings. Key to sustainability of market strength will be profit trends in coming years. If we become convinced of the sustainability of corporate earning growth next year onward, we may need to revise our stance. We appreciate your continued support and look forward to reporting on the Portfolio's progress in the future. Goldman Sachs Japanese Equity Team Tokyo September 3, 1999 INVESTMENT PROCESS OVERVIEW The investment process for the Goldman Sachs Japanese Equity Fund combines both qualitative and quantitative analysis, with an emphasis on portfolio manager input. Company Visits -------------- Internal Research ----------------- Return Expectations Stock Selection Portfolio Construction . Stock & Industry Views Relative to Benchmark Portfolio Review & Analysis . Performance Measurement & Attribution . BARRA . Risk Analysis 3 Goldman Sachs Japanese Equity Fund The Goldman Sachs Advantage Founded in 1869, Goldman, Sachs & Co. is a premier financial services firm traditionally known on Wall Street and around the world for its institutional expertise. Today, the firm's Asset Management Division provides individual investors the opportunity to tap the resources of a global institutional powerhouse -- and put this expertise to work in their individual portfolios. What Sets Goldman Sachs Funds Apart? 1 --------------------------- Resources and Relationships --------------------------- Our porfolio management teams are located on-site, around the world, in New York, London, Tokyo and Singapore. Their understanding of local economies, markets, industries and cultures helps deliver what many investors want: access to global investment opportunities and consistent, risk-adjusted performance. 2 --------------------------- In-Depth Research --------------------------- Our portfolio management teams make on-site visits to hundreds of companies each month, then construct selective portfolios with an emphasis on their best ideas. Our teams also have access to Goldman, Sachs & Co.'s Global Investment Research Department. 3 --------------------------- Risk Management --------------------------- In this, our institutional heritage is clear. Institutions, as well as many individual investors, often look to us to manage the risks of global investing over time in different market environments. To learn more about the Goldman Sachs Family of Funds, call your investment professional today. 4 GOLDMAN SACHS JAPANESE EQUITY FUND Performance Summary August 31, 1999 The following graph shows the value, as of August 31, 1999, of a $10,000 in- vestment made (with the maximum sales charge of 5.5% for Class A shares and a maximum contingent deferred sales charges of 5.0% declining to 0% after six years for Class B and 1% if redeemed within twelve months for Class C and at NAV for the Institutional and Service Classes) on May 1, 1998 (commencement of operations) in the Goldman Sachs Japanese Equity Fund. For comparative purposes, the performance of the Fund's benchmark (the Tokyo Price Index ("Topix")) is shown. This performance data represents past performance and should not be considered indicative of future performance which will fluctu- ate with changes in market conditions. These performance fluctuations will cause an investor's shares, when redeemed, to be worth more or less than their original cost. Japanese Equity Fund's Lifetime Performance Growth of a $10,000 Investment, Distributions Reinvested May 1, 1998 to August 31, 1999 [GRAPH APPEARS HERE] Class A Class B Class C Institutional Class Service Class Topix 5/1/98 9,450 10,000 10,000 10,000 10,000 10,000 May-98 9,367 9,910 9,910 9,910 9,910 9,544 Jun-98 9,348 9,890 9,890 9,900 9,890 9,629 Jul-98 9,537 10,080 10,080 10,100 10,090 9,443 Aug-98 8,894 9,400 9,400 9,420 9,410 8,499 Sep-98 8,620 9,110 9,110 9,140 9,120 8,266 Oct-98 9,480 10,020 10,020 10,060 10,020 9,612 Nov-98 9,991 10,550 10,560 10,610 10,560 10,047 Dec-98 10,454 11,040 11,050 11,106 11,063 10,404 Jan-99 10,454 11,030 11,040 11,106 11,043 10,495 Feb-99 10,350 10,920 10,930 11,006 10,933 10,217 Mar-99 11,446 12,070 12,080 12,177 12,093 11,578 Apr-99 12,013 12,660 12,670 12,787 12,693 12,114 May-99 11,711 12,330 12,350 12,467 12,373 11,613 Jun-99 13,110 13,800 13,820 13,968 13,853 12,666 Jul-99 14,490 15,250 15,263 15,450 15,314 13,959 Aug-99 15,350 15,740 16,164 16,371 16,224 14,417
Aggregate Total Return through August 31, 1999(a) Since Inception One Year Seven Months Class A Excluding sales charges 43.72% 72.59% 46.84% Including sales charges 37.79% 63.06% 38.81% --------------------------------------------------------------------------- Class B Excluding contingent deferred sales charges 43.05% 71.70% 46.33% Including contingent deferred sales charges 40.39% 66.70% 41.33% --------------------------------------------------------------------------- Class C Excluding contingent deferred sales charges 43.21% 71.95% 46.41% Including contingent deferred sales charges 43.21% 70.95% 45.41% --------------------------------------------------------------------------- Institutional Class 44.58% 73.79% 47.40% --------------------------------------------------------------------------- Service Class 43.61% 72.41% 46.92% ---------------------------------------------------------------------------
(a) Commencement date of operations was May 1, 1998 for all share classes. 5 GOLDMAN SACHS JAPANESE EQUITY FUND Statement of Investments August 31, 1999
Shares Description Value Common Stocks - 90.3% Japan - 90.3% 38,000 77 Bank Ltd. (Banks) $ 372,232 4,100 Advantest Corp. (Electrical Equipment) 556,867 5,750 Aiful Corp. (Financial Services) 999,748 10,700 Aiphone Co. (Electrical Equipment) 163,433 161,000 Asahi Chemical Industry Co. Ltd. (Chemicals) 861,435 170,000 Asahi Glass Co. Ltd. (Home Products) 1,075,959 98,000 Bank of Tokyo-Mitsubishi (Banks) 1,465,496 40,000 Bridgestone Corp. (Auto) 1,134,129 14,000 Canon, Inc. (Computer Hardware) 409,750 48,000 Chiba Bank Ltd. (Banks) 180,436 51,000 Citizen Watch Co. (Specialty Retail) 439,402 35,000 Dai-Ichi Kangyo Bank Ltd. (Banks) 368,455 88 East Japan Railway Co. (Railroads) 533,626 19,600 Familymart Co. (Specialty Retail) 1,007,472 20,100 Fanuc Ltd. (Machinery) 1,213,335 36,000 Fuji Bank Ltd. (Banks) 372,068 34,000 Fuji Photo Film Ltd. (Leisure) 1,243,884 63,000 Fujitec Co. Ltd. (Construction) 659,761 51,000 Fujitsu Ltd. (Computer Hardware) 1,497,325 45,000 Hitachi Construction Machinery Co. Ltd. (Heavy Machinery) 279,874 25,000 Honda Motor Co. Ltd. (Auto) 1,006,082 30,000 Inaba Denkisangyo (Electrical Equipment) 507,614 90,000 Industrial Bank of Japan Ltd. (Banks) 917,821 7,000 Ito En Ltd. (Food & Beverage) 541,638 53 Japan Tobacco, Inc. (Tobacco) 736,818 33,000 Kao Corp. (Food & Beverage) 938,675 2,000 Keyence Corp. (Industrial Parts) 454,566 72,000 Kirin Brewery Ltd. (Alcohol) 875,840 12,100 Konami Co. Ltd. (Computer Software) 1,061,316 10,000 Matsumotokyoshi (Specialty Retail) 748,159 8,800 Meitec Corp. (Business Services) 313,898 44,000 Minebea Co. (Electrical Equipment) 531,211 28,100 Ministop Co. Ltd. (Specialty Retail) 809,576 9,600 Misumi Corp. (Industrial Parts) 622,527 70,000 Mitsubishi Corp. (Wholesale) 583,253 161,000 Mitsui Co. (Wholesale) 1,135,327 168,000 Mitsui Marine & Fire (Insurance) 923,474 251,000 Mitsui Mining & Smelting (Mining) 1,485,316 12,000 Murata Manufacturing Co. Ltd. (Industrial Parts) 965,839 58,000 NEC Corp. (Computer Hardware) 944,254 7,900 Nintendo Co. Ltd. (Entertainment) 1,372,845 76,000 Nippon Mining & Metals Co. Ltd. (Mining) 590,845 194 Nippon Telephone & Telegraph Corp. (Telecommunications) 2,182,467 125 NTT Mobile Communications Network, Inc. (Telecommunications) 2,071,615 80,000 Ricoh Co. Ltd. (Computer Hardware) 1,428,271 7,800 Riso Kagaku Corp. (Specialty Retail) 420,908 4,000 Rohm Co. (Electrical Equipment) 797,549 123,000 Sakura Bank Ltd. (Banks) 652,490 85,000 Sanwa Bank (Banks) 1,166,141 8,000 Secom Co. Ltd. (Business Services) 1,093,886
Shares Description Value Common Stocks - (continued) Japan - (continued) 77,000 Sharp Corp. (Electrical Equipment) $ 1,176,110 30,000 Shin-Etsu Chemical Co. Ltd. (Chemicals) 1,223,762 3,500 SMC Corp. (Machinery) 534,596 117,000 Sumitomo Bakelite (Chemicals) 1,224,201 50,000 Sumitomo Electric Industries (Electrical Equipment) 681,392 21,000 Taisho Pharmaceutical Co. Ltd. (Drugs) 885,444 16,000 Takeda Chemical Industries Ltd. (Health) 804,866 9,000 Takefuji Corp. (Financial Services) 1,449,582 11,000 TDK Corp. (Computer Hardware) 1,338,089 23,000 Terumo Corp. (Medical Products) 736,269 5,300 Toho Co. (Specialty Retail) 819,225 49,000 Tokyo Electric Power (Electrical Utilities) 1,142,818 54,000 Toppan Forms Co. Ltd. (Publishing) 1,276,718 31,000 Yamanouchi Pharmaceutical (Drugs) 1,383,637 15,300 York-Benimaru Co. Ltd. (Specialty Retail) 597,531 22 Yoshinoya D&C Co. Ltd. (Restaurants) 523,163 -------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost $44,374,508) $58,512,311 --------------------------------------------------------------------------
Principal Interest Maturity Amount Rate Date Value Short-Term Obligation - 4.3% State Street Bank & Trust Euro-Time Deposit $2,785,000 5.50% 09/01/1999 $ 2,785,000 ---------------------------------------------------------------------------------------------- TOTAL SHORT-TERM OBLIGATION (Cost $2,785,000) $ 2,785,000 ---------------------------------------------------------------------------------------------- TOTAL INVESTMENTS (Cost $47,159,508) $61,297,311 ----------------------------------------------------------------------------------------------
The percentage shown for each investment category reflects 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 GOLDMAN SACHS JAPANESE EQUITY FUND
As a % of total net assets Common Stock Industry Concentrations Alcohol 1.3% Auto 3.3 Banks 8.5 Business Services 2.2 Chemicals 5.1 Computer Hardware 8.7 Computer Software 1.6 Construction 1.0 Drugs 3.5 Electrical Equipment 6.8 Electrical Utilities 1.8 Entertainment 2.1 Financial Services 3.8 Food & Beverage 2.3 Health 1.2 Heavy Machinery 0.4 Home Products 1.7 Industrial Parts 3.2 Insurance 1.4 Leisure 1.9 Machinery 2.7 Medical Products 1.1 Mining 3.2 Publishing 2.0 Railroads 0.8 Restaurants 0.8 Specialty Retail 7.5 Telecommunications 6.6 Tobacco 1.1 Wholesale 2.7 ------------------------------------------------------- TOTAL COMMON STOCK 90.3% -------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 7 GOLDMAN SACHS JAPANESE EQUITY FUND Statement of Assets and Liabilities August 31, 1999 Assets: Investment in securities, at value (identified cost $47,159,508) $61,297,311 Cash, at value 3,468,919 Receivables: Investment securities sold, at value 647,838 Dividends and interest, at value 18,484 Fund shares sold 360,773 Variation margin(a) 578,571 Reimbursement from investment adviser 65,324 Deferred organization expenses, net 11,364 Other assets 587 ------------------------------------------------------------------------------ Total assets 66,449,171 ------------------------------------------------------------------------------ Liabilities: Payables: Investment securities purchased, at value 1,145,071 Fund shares repurchased 205,000 Amounts owed to affiliates 76,394 Forward foreign currency exchange contracts, at value 141,914 Accrued expenses and other liabilities, at value 87,256 ------------------------------------------------------------------------------ Total liabilities 1,655,635 ------------------------------------------------------------------------------ Net Assets: Paid-in capital 46,431,275 Accumulated undistributed net investment income 270,409 Accumulated net realized gain from investment, futures and foreign currency related transactions 3,907,447 Net unrealized gain on investments, futures and translation of assets and liabilities denominated in foreign currencies 14,184,405 ------------------------------------------------------------------------------ NET ASSETS $64,793,536 ------------------------------------------------------------------------------ Net asset value, offering and redemption price per share:(b) Class A $16.24 Class B $16.14 Class C $16.16 Institutional $16.36 Service $16.22 ------------------------------------------------------------------------------ Shares outstanding: Class A 2,111,110 Class B 261,435 Class C 221,794 Institutional 1,388,399 Service 161 ------------------------------------------------------------------------------ Total shares outstanding, $.001 par value (unlimited number of shares authorized) 3,982,899 ------------------------------------------------------------------------------
(a) Includes approximately $182,000 relating to initial margin requirements for futures transactions. (b) Maximum public offering price per share for Class A shares is $17.19 (NAV per share multiplied by 1.0582). At redemption, Class B and Class C shares are subject to a contingent deferred sales charge, assessed on the amount equal to the lesser of the current net asset value or the original purchase price of the shares. The accompanying notes are an integral part of these financial statements. 8 GOLDMAN SACHS JAPANESE EQUITY FUND Statement of Operations For the Seven-Month Period Ended August 31, 1999 Investment income: Dividends(a) $ 107,462 Interest 27,508 ----------------------------------------------------------------------------- Total income 134,970 ----------------------------------------------------------------------------- Expenses: Management fees 226,009 Distribution and service fees(b) 79,638 Registration fees 61,739 Custodian fees 52,275 Professional fees 36,828 Transfer agent fees(c) 29,296 Trustee fees 6,273 Amortization of deferred organization expenses 1,493 Service share fees 6 Other 52,975 ----------------------------------------------------------------------------- Total expenses 546,532 ----------------------------------------------------------------------------- Less -- expenses reimbursed (208,419) ----------------------------------------------------------------------------- Net expenses 338,113 ----------------------------------------------------------------------------- NET INVESTMENT LOSS (203,143) ----------------------------------------------------------------------------- Realized and unrealized gain on investment, futures and foreign currency related transactions: Net realized gain from: Investment transactions 4,007,670 Futures transactions 101,078 Foreign currency related transactions 221,442 Net change in unrealized gain (loss) on: Investments 12,189,344 Futures 20,305 Translation of assets and liabilities denominated in foreign currencies 33,076 ----------------------------------------------------------------------------- Net realized and unrealized gain on investment, futures and foreign currency related transactions 16,572,915 ----------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $16,369,772 -----------------------------------------------------------------------------
(a) Taxes withheld on dividends were $19,075. (b) Class A, Class B and Class C had distribution and service fees of $55,407, $15,230 and $9,001, respectively. (c) Class A, Class B, Class C, Institutional Class and Service Class had transfer agent fees of $21,053, $2,894, $1,710, $3,638 and $1, respec- tively. The accompanying notes are an integral part of these financial statements. 9 GOLDMAN SACHS JAPANESE EQUITY FUND Statements of Changes in Net Assets
For the Seven-Month For the Period Ended Period Ended August 31, 1999 January 31, 1999(a) From operations: Net investment loss $ (203,143) $ (86,973) Net realized gain from investment, futures and foreign currency related transactions 4,330,190 140,585 Net change in unrealized gain on investments, futures and translation of assets and liabilities denominated in foreign currencies 12,242,725 1,941,680 ----------------------------------------------------------------------------- Net increase in net assets resulting from operations 16,369,772 1,995,292 ----------------------------------------------------------------------------- Distributions to shareholders: In excess of net investment income Class A shares (1,121) -- Class B shares -- -- Class C shares (715) -- Institutional shares (1,768) (6,204) Service shares -- -- ----------------------------------------------------------------------------- Total distributions to shareholders (3,604) (6,204) ----------------------------------------------------------------------------- From share transactions: Proceeds from sales of shares 29,653,297 23,719,687 Reinvestment of dividends and distributions 3,181 -- Cost of shares repurchased (2,751,373) (4,186,512) ----------------------------------------------------------------------------- Net increase in net assets resulting from share transactions 26,905,105 19,533,175 ----------------------------------------------------------------------------- TOTAL INCREASE 43,271,273 21,522,263 ----------------------------------------------------------------------------- Net assets: Beginning of period 21,522,263 -- ----------------------------------------------------------------------------- End of period $64,793,536 $21,522,263 ----------------------------------------------------------------------------- Accumulated undistributed (distributions in excess) of net investment income $ 270,409 $ (34,385) -----------------------------------------------------------------------------
(a) Commencement date of operations was May 1, 1998 for all share classes. The accompanying notes are an integral part of these financial statements. 10 GOLDMAN SACHS JAPANESE EQUITY FUND Notes to Financial Statements August 31, 1999 1. ORGANIZATION Goldman Sachs Trust (the "Trust") is a Delaware business trust registered un- der the Investment Company Act of 1940 (as amended) as an open-end, manage- ment investment company. The Trust includes the Goldman Sachs Japanese Equity Fund (the "Fund"). The Fund is a diversified portfolio offering five classes of shares -- Class A, Class B, Class C, Institutional and Service. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting policies consist- ently followed by the Fund. The preparation of financial statements in con- formity with generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts. Actual results could differ from those estimates. Effective for fiscal year 1999, the Board of Trustees approved a change in the fiscal year end of the Fund from January 31 to August 31. Accordingly, the financial statements of the Fund are presented for the seven-month period ended August 31, 1999. A. Investment Valuation -- Investments in securities traded on a U.S. or for- eign securities exchange or the NASDAQ system are valued daily at their last sale or closing price on the principal exchange on which they are traded. If no sale occurs, securities are valued at the last bid price. Debt securities are valued at prices supplied by independent pricing services, broker / deal- er-supplied valuations or matrix pricing systems. Unlisted equity and debt securities for which market quotations are available are valued at the last sale price on the valuation date or, if no sale occurs the last bid price. Short-term debt obligations maturing in sixty days or less are valued at am- ortized cost. Securities for which quotations are not readily available are valued at fair value using methods approved by the Board of Trustees of the Trust. B. Security Transactions and Investment Income -- Security transactions are recorded as of the trade date. Realized gains and losses on sales of portfo- lio securities are calculated using the identified-cost basis. Dividend in- come is recorded on the ex-dividend date. Dividends for which the Fund has the choice to receive either cash or stock are recognized as investment in- come in an amount equal to the cash dividend. Interest income is recorded on the basis of interest accrued, premium amortized and discount earned. C. Foreign Currency Translations -- The books and records of the Fund are maintained in U.S. dollars. Amounts denominated in foreign currencies are translated into U.S. dollars on the following basis: (i) investment valuations, foreign currency and other assets and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based on current exchange rates; (ii) purchases and sales of foreign investments, income and expenses are converted into U.S. dollars based on currency exchange rates prevailing on the respective dates of such transactions. Net realized and unrealized gain (loss) on foreign currency transactions will represent: (i) foreign exchange gains and losses from the sale and hold- ings of foreign currencies; (ii) currency gains and losses between trade date and settlement date on investment securities transactions and forward ex- change contracts; and (iii) gains and losses from the difference between amounts of dividends, interest and foreign withholding taxes recorded and the amounts actually received. 11 GOLDMAN SACHS JAPANESE EQUITY FUND Notes to Financial Statements (continued) August 31, 1999 D. Forward Foreign Currency Exchange Contracts -- The Fund may enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date as a hedge or cross-hedge against either specific transactions or portfolio positions. The Fund may also purchase and sell such contracts to seek to increase total re- turn. All commitments are "marked-to-market" daily at the applicable transla- tion rates and any resulting unrealized gains or losses are recorded in the Fund's financial statements. The Fund records realized gains or losses at the time a forward contract is offset by entry into a closing transaction or ex- tinguished by delivery of the currency. Risks may arise upon entering these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. E. Short Securities Position -- The Fund may enter into covered short sales. Short securities positions are accounted for at cost and subsequently marked to market to reflect the current market value of the position. The market value of the short position is recorded as a liability on the Fund's records and any difference between this market value and the sales proceeds is re- ported as an unrealized gain or loss. Gains and losses are realized when a short position is closed out by delivering securities back to the broker. F. Deferred Organization Expenses -- Organization-related costs are amortized on a straight-line basis over a period of five years. G. Option Accounting Principles -- When the Fund writes call or put options, an amount equal to the premium received is recorded as an asset and as an equivalent liability. The amount of the liability is subsequently marked-to- market to reflect the current market value of the option written. When a written option expires on its stipulated expiration date or the Fund enters into a closing purchase transaction, the Fund realizes a gain or loss without regard to any unrealized gain or loss on the underlying security, and the li- ability related to such option is extinguished. When a written call option is exercised, the Fund realizes a gain or loss from the sale of the underlying security, and the proceeds of the sale are increased by the premium origi- nally received. When a written put option is exercised, the amount of the premium originally received will reduce the cost of the security which the Fund purchases upon exercise. There is a risk of loss from a change in value of such options which may exceed the related premiums received. Upon the purchase of a call option or a protective put option by the Fund, the premium paid is recorded as an investment and subsequently marked-to-mar- ket to reflect the current market value of the option. If an option which the Fund has purchased expires on the stipulated expiration date, the Fund will realize a loss in the amount of the cost of the option. If the Fund enters into a closing sale transaction, the Fund will realize a gain or loss, de- pending on whether the sale proceeds for the closing sale transaction are greater or less than the cost of the option. If the Fund exercises a pur- chased put option, the Fund will realize a gain or loss from the sale of the underlying security, and the proceeds from such sale will be decreased by the premium originally paid. If the Fund exercises a purchased call option, the cost of the security which the Fund purchases upon exercise will be increased by the premium originally paid. 12 GOLDMAN SACHS JAPANESE EQUITY FUND H. Segregation Transactions -- The Fund may enter into certain derivative transactions to seek to increase total return. Forward foreign currency ex- change contracts, futures contracts, written options, mortgage dollar rolls, when-issued securities and forward commitments represent examples of such transactions. As a result of entering into these transactions, the Fund is required to segregate liquid assets on the accounting records equal to or greater than the market value of the corresponding transactions. I. Expenses -- Expenses incurred by the Trust which do not specifically re- late to an individual Fund of the Trust are allocated to the Funds based on a straight-line or prorata basis depending upon the nature of the expense. Class A, Class B and Class C shares bear all expenses and fees relating to their respective Distribution and Service Plans. Shareholders of Service shares bear all expenses and fees paid to service organizations. Each class of shares of the Fund separately bears its respective class-specific transfer agency fees. J. Federal Taxes -- It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute each year substantially all of its investment company taxable income and capital gains to its shareholders. Accordingly, no federal tax provision is required. The characterization of distributions to shareholders for financial reporting purposes is determined in accordance with income tax rules. Therefore, the source of the Fund's distributions may be shown in the accompanying financial statements as either from or in excess of net invest- ment 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 August 31, 1999, the aggregate cost of portfolio securities for federal income tax purposes is $47,261,756. Accordingly, the gross unrealized gain on investments was $14,350,960 and the gross unrealized loss on investments was $315,405 resulting in a net unrealized gain of $14,035,555. 3. AGREEMENTS Pursuant to the Investment Management Agreement ("the Agreement"), Goldman Sachs Asset Management International ("GSAMI"), an affiliate of Goldman Sachs Asset Management ("GSAM"), a separate operating division of Goldman Sachs & Co. ("Goldman Sachs") serves as the investment adviser to the Fund. Under the Agreement, GSAMI, subject to the general supervision of the Trust's Board of Trustees, manages the Fund's portfolio. As compensation for the services ren- dered under the Agreement, the assumption of the expenses related thereto and administering the Fund's business affairs, including providing facilities, GSAMI is entitled to a fee, computed daily and payable monthly, at an annual rate equal to 1.00% of the average daily net assets of the Fund. The adviser has voluntarily agreed to limit certain "Other Expenses" (ex- cluding management fees, distribution and service fees, transfer agent fees, taxes, interest, brokerage, litigation, Service share fees, indemnification costs and other extraordinary expenses) to the extent such expenses exceed, on an annual basis, .01% of the average daily net assets of the Fund. Goldman Sachs has agreed to reimburse approximately $208,000 for the period ended Au- gust 31, 1999. The Trust, on behalf of the Fund, had adopted Distribution and Service Plans. Under the Distribution and Service Plans, Goldman Sachs and/or Autho- rized Dealers are entitled to a monthly fee from the Fund for distribution and shareholder maintenance services equal, on an annual basis, to .50%, 1.00% and 1.00% of the Fund's average daily net assets attributable to Class A, Class B and Class C shares, respectively. 13 GOLDMAN SACHS JAPANESE EQUITY FUND Notes to Financial Statements (continued) August 31, 1999 Goldman Sachs serves as the distributor of shares of the Fund pursuant to a Distribution Agreement. Goldman Sachs may receive a portion of the Class A sales load and Class B and Class C contingent deferred sales charges and has advised the Fund that it retained approximately $13,000 for the period ended August 31, 1999. Goldman Sachs also serves as the transfer agent of the Fund for a fee. The fees charged for such transfer agent services are calculated daily and pay- able monthly at an annual rate as follows: 0.19% of average daily net assets for Class A, Class B and Class C Shares and 0.04% of average daily net assets for Institutional and Service Shares. The Trust, on behalf of the Fund, has adopted a Service Plan. This Plan al- lows for Service shares to compensate service organizations for providing va- rying levels of account administration and shareholder liaison services to their customers who are beneficial owners of such shares. The Service Plan provides for compensation to the service organizations in an amount up to .50% (on an annualized basis), of the average daily net asset value of the Service shares. As of August 31, 1999, the amounts owed to affiliates were approximately $50,000, $19,000 and $7,000 for management, distribution and service and transfer agent fees, respectively. 4. PORTFOLIO SECURITIES TRANSACTIONS Purchases and proceeds of sales or maturities of securities (excluding short- term investments and futures transactions) for the period ended August 31, 1999, were $38,131,660 and $16,215,586, respectively. For the period ended August 31, 1999, Goldman Sachs earned approximately $3,000 of brokerage commissions from portfolio transactions. At August 31, 1999, the Fund had the following outstanding forward foreign currency exchange contracts:
Value on Unrealized Open Forward Foreign Currency Settlement Current ---------------- Sale Contracts Date Value Gain Loss -------------------------------------------------------------------------------- Japanese Yen expiring 9/10/1999 $ 250,000 $ 275,276 $ -- $ 25,276 expiring 9/20/1999 108,396 116,638 $ -- 8,242 -------------------------------------------------------------------------------- TOTAL OPEN FORWARD FOREIGN CURRENCY SALE CONTRACTS $ 358,396 $ 391,914 $ -- $ 33,518 --------------------------------------------------------------------------------
Realized Closed but Unsettled Purchase ------------- Forward Currency Contracts Value Sale Value Gain Loss -------------------------------------------------------------------------- Japanese Yen expiring 9/20/1999 $4,002,000 $3,893,604 $ -- $108,396 -------------------------------------------------------------------------- TOTAL CLOSED BUT UNSETTLED FORWARD FOREIGN CURRENCY CONTRACTS $4,002,000 $3,893,604 $ -- $108,396 --------------------------------------------------------------------------
14 GOLDMAN SACHS JAPANESE EQUITY FUND The contractual amounts of forward foreign currency exchange contracts do not necessarily represent the amounts potentially subject to risk. The mea- surement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. At August 31, 1999, the Fund had sufficient cash and securities to cover any commitments under these contracts. The Fund has recorded a "Payable for forward foreign currency exchange con- tracts" of $141,914 in the accompanying Statement of Assets and Liabilities. The Fund may enter into futures transactions to hedge against changes in interest rates, securities prices, currency exchange rates or to seek to in- crease total return. Upon entering into a futures contract, the Fund is re- quired to deposit with a broker or the Fund's custodian bank, an amount of cash or securities equal to the minimum "initial margin" requirement of the associated futures exchange. Subsequent payments for futures contracts ("variation margin") are paid or received by the Fund, depending on the fluc- tuations in the value of the contracts, and are recorded as unrealized gains or losses. When contracts are closed, the Fund realizes a gain or loss which is reported in the Statement of Operations. The use of futures contracts involve, to varying degrees, elements of mar- ket risk which may exceed the amounts recognized in the Statement of Assets and Liabilities. Changes in the value of the futures contracts may not di- rectly correlate with changes in the value of the underlying securities. This risk may decrease the effectiveness of the Fund's hedging strategies and po- tentially result in a loss. At August 31, 1999, open futures contracts were as follows:
Number of Contracts Settlement Market Unrealized Type Long Month Value Gain --------------------------------------------------------------------------------------- TOPIX Index 25 September 1999 $3,357,799 $20,305 --------------------------------------------------------------------------------------- $3,357,799 $20,305 ---------------------------------------------------------------------------------------
5. LINE OF CREDIT FACILITY The Fund participated in a $250,000,000 uncommitted and a $50,000,000 commit- ted, unsecured revolving line of credit facility which was terminated on April 30, 1999. Effective April 30, 1999, the Fund now participates in a $250,000,000 uncommitted and a $250,000,000 committed, unsecured revolving line of credit facility. Under the most restrictive arrangement, the Fund must own securities having a market value in excess of 400% of the total bank borrowings. These facilities are to be used solely for temporary or emergency proposes. The interest rate on borrowings is based on the Federal Funds rate. The committed facility also requires a fee to be paid by the Fund based on the amount of the commitment which has not been utilized. During the period ended August 31, 1999, the Fund did not have any borrowings under any of these facilities. 15 GOLDMAN SACHS JAPANESE EQUITY FUND Notes to Financial Statements (continued) August 31, 1999 6. CERTAIN RECLASSIFICATIONS In accordance with Statement of Position 93-2, the Fund reclassified $509,285 from accumulated net realized gain from investment and foreign currency re- lated transactions to accumulated undistributed net investment income and $2,256 from paid-in-capital to accumulated undistributed net investment in- come. These reclassifications have no impact on the net asset value of the Fund and are designed to present the Fund's capital accounts on a tax basis. 7. OTHER MATTERS As of August 31, 1999, the Goldman Sachs Group was the beneficial owner of approximately 25% of the outstanding shares of the Fund. 16 GOLDMAN SACHS JAPANESE EQUITY FUND 8. SUMMARY OF SHARE TRANSACTIONS Share activity is as follows:
For the Seven-Month Period Ended For the Period Ended August 31, 1999 January 31, 1999(a) ---------------------- ---------------------- Shares Dollars Shares Dollars ------------------------------------------------------------------------------ Class A Shares Shares sold 1,490,616 $19,567,798 974,018 $ 9,912,925 Reinvestment of dividends and distributions 61 921 -- -- Shares repurchased (138,512) (1,823,081) (215,073) (2,211,327) ------------------------------------- 1,352,165 17,745,638 758,945 7,701,598 ------------------------------------------------------------------------------ Class B Shares Shares sold 156,293 2,037,345 143,378 1,452,502 Reinvestment of dividends and distributions -- -- -- -- Shares repurchased (24,231) (344,034) (14,005) (144,559) ------------------------------------- 132,062 1,693,311 129,373 1,307,943 ------------------------------------------------------------------------------ Class C Shares Shares sold 209,165 2,748,964 197,598 2,047,960 Reinvestment of dividends and distributions 44 665 -- -- Shares repurchased (13,133) (201,949) (171,880) (1,830,626) ------------------------------------- 196,076 2,547,680 25,718 217,334 ------------------------------------------------------------------------------ Institutional Shares Shares sold 384,318 5,299,190 1,028,740 10,304,702 Reinvestment of dividends and distributions 104 1,595 -- -- Shares repurchased (24,763) (382,309) -- -- ------------------------------------- 359,659 4,918,476 1,028,740 10,304,702 ------------------------------------------------------------------------------ Service Shares Shares sold -- -- 161 1,598 ------------------------------------- -- -- 161 1,598 ------------------------------------------------------------------------------ NET INCREASE 2,039,962 $26,905,105 1,942,937 $19,533,175 ------------------------------------------------------------------------------
(a) Commencement date of operations was May 1, 1998 for all share classes. 17 GOLDMAN SACHS JAPANESE EQUITY FUND Financial Highlights Selected Data for a Share Outstanding Throughout each Period
Income from investment operations(a) Distributions to shareholders ------------------------- ------------------------------------ Net asset In excess value, Net Net realized From net of net Net increase beginning investment and unrealized investment investment From net in net asset of period loss gains income income realized gains value FOR THE SEVEN-MONTH PERIOD ENDED AUGUST 31, 1999 - Class A Shares $11.06 $(0.06) $5.24 $-- $-- $-- $5.18 1999 - Class B Shares 11.03 (0.09) 5.20 -- -- -- 5.11 1999 - Class C Shares 11.04 (0.08) 5.20 -- -- -- 5.12 1999 - Institutional Shares 11.10 (0.03) 5.29 -- -- -- 5.26 1999 - Service Shares 11.04 (0.06) 5.24 -- -- -- 5.18 FOR THE PERIOD ENDED JANUARY 31, 1999 - Class A Shares (commenced May 1, 1998) 10.00 (0.06) 1.12 -- -- -- 1.06 1999 - Class B Shares (commenced May 1, 1998) 10.00 (0.08) 1.11 -- -- -- 1.03 1999 - Class C Shares (commenced May 1, 1998) 10.00 (0.09) 1.13 -- -- -- 1.04 1999 - Institutional Shares (commenced May 1, 1998) 10.00 (0.02) 1.13 -- (0.01) -- 1.10 1999 - Service Shares (commenced May 1, 1998) 10.00 (0.05) 1.09 -- -- -- 1.04 ----------------------------------------------------------------------------------------------------------------
(a) Includes the balancing effect of calculating per share amounts. (b) Assumes investment at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, a complete redemption of the investment at the net asset value at the end of the period and no sales or redemption charges. Total return would be reduced if a sales or redemption charge were taken into account. (c) Annualized. (d) Not annualized. The accompanying notes are an integral part of these financial statements. 18 GOLDMAN SACHS JAPANESE EQUITY FUND
Ratios assuming no voluntary waiver of fees or expense limitations ----------------------------------- Ratio of Net assets Ratio of net investment Ratio of Ratio of Net asset at end of net expenses loss to expenses to net investment loss Portfolio value, end Total period to average average net average to average net turnover of period return(b) (in 000s) net assets assets net assets assets rate $16.24 46.84%(d) $34,279 1.70%(c) (1.17)%(c 2.62%(c (2.09)%(c) 44.83%(d) 16.14 46.33(d) 4,219 2.20(c) (1.57)(c) 3.12(c) (2.49)(c) 44.83(d) 16.16 46.41(d) 3,584 2.20(c) (1.81)(c) 3.12(c) (2.73)(c) 44.83(d) 16.36 47.40(d) 22,709 1.05(c) (0.37)(c) 1.97(c) (1.29)(c) 44.83(d) 16.22 46.92(d) 3 1.55(c) (0.74)(c) 2.47(c) (1.66)(c) 44.83(d) 11.06 10.60(d) 8,391 1.64(c) (1.20)(c) 4.18(c) (3.74)(c) 53.29(d) 11.03 10.30(d) 1,427 2.15(c) (1.76)(c) 4.69(c) (4.30)(c) 53.29(d) 11.04 10.40(d) 284 2.15(c) (1.69)(c) 4.69(c) (4.23)(c) 53.29(d) 11.10 11.06(d) 11,418 1.03(c) (0.36)(c) 3.57(c) (2.90)(c) 53.29(d) 11.04 10.43(d) 2 1.53(c) (0.68)(c) 4.07(c) (3.22)(c) 53.29(d) - ----------------------------------------------------------------------------------------------------------------------------------
19 GOLDMAN SACHS JAPANESE EQUITY FUND Report of Independent Public Accountants To the Shareholders and Board of Trustees of Goldman Sachs Trust -- Japanese Equity Fund: We have audited the accompanying statement of assets and liabilities of Goldman Sachs Japanese Equity Fund, one of the portfolios constituting Goldman Sachs Trust--Equity Funds (a Delaware Business Trust), including the statement of investments, as of August 31, 1999, and the related statement of operations, the statements of changes in net assets and the financial high- lights for the periods presented. These financial statements and the finan- cial highlights are the responsibility of the Fund's 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 stan- dards. 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 finan- cial statements. Our procedures included confirmation of securities owned as of August 31, 1999, by correspondence with the custodian and brokers. An au- dit 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 the financial highlights re- ferred to above present fairly, in all material respects, the financial posi- tion of Goldman Sachs Japanese Equity Fund as of August 31, 1999, the results of its operations, the changes in its net assets and the financial highlights for the periods presented, in conformity with generally accepted accounting principles. ARTHUR ANDERSEN LLP Boston, Massachusetts October 8, 1999 20 GOLDMAN SACHS FUND PROFILE Goldman Sachs Japanese Equity Fund An Investment Idea for the Long Term History has shown that a long-term plan that includes international stocks can help provide greater protection against market volatility over time than a portfolio that invests only in U.S. stocks. Goldman Sachs Japanese Equity Fund provides investors access to the benefits associated with international market diversification. The Fund seeks long-term capital appreciation through equity securities of Japanese companies. Target Your Needs The Goldman Sachs Japanese Equity Fund has a distinct investment objective and a defined place on the risk/return spectrum. As your investment objectives change, you can exchange shares within Goldman Sachs Funds without any additional charge.* (Please note: in general, greater returns are associated with greater risk.) ---------------------------------------------------------------------- Goldman Sachs Funds Goldman Sachs Funds offers more than 30 investment options for global diversification across borders, investment styles, asset classes and security capitalizations. [GRAPHIC APPEARS HERE] For More Information To learn more about the Goldman Sachs Japanese Equity Fund and other Goldman Sachs Funds, call your investment professional today. * The exchange privilege is subject to termination and its terms are subject to change.
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TRUSTEES Officers Ashok N. Bakhru, Chairman Douglas C. Grip, President David B. Ford Jesse H. Cole, Vice President Douglas C. Grip James A. Fitzpatrick, Vice President John P. McNulty Nancy L. Mucker, Vice President Mary P. McPherson John M. Perlowski, Treasurer Alan A. Shuch Adrien E. Deberghes, Jr., Assistant Treasurer Jackson W. Smart, Jr. Philip V. Giuca, Jr., Assistant Treasurer William H. Springer Michael J. Richman, Secretary Richard P. Strubel Howard B. Surloff, Assistant Secretary Valerie A. Zondorak, Assistant Secretary GOLDMAN, SACHS & CO. Distributor and Transfer Agent GOLDMAN SACHS ASSET MANAGEMENT INTERNATIONAL Investment Adviser GOLDMAN SACHS INTERNATIONAL Peterborough Court, 133 Fleet Street London EC4A 2BB, England Visit our internet address: www.gs.com/funds This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus. Investors should read the Prospectus carefully before investing or sending money. The Fund's investment in Japanese securities will be particularly subject to the risks of adverse social, political and economic events which occur in Japan or affect Japanese markets. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Copyright 1999 Goldman, Sachs & Co. All rights reserved. Date of first use: October 15, 1999 JAPANAR / 4.25K / 10-99 -----END PRIVACY-ENHANCED MESSAGE-----