GOLDMAN SACHS VARIABLE INSURANCE TRUST

Investment Abbreviation:

American Depositary Receipt

N-30D 1 y56173n-30d.htm N-30D GOLDMAN SACHS VARIABLE INSURANCE TRUST

Goldman

Sachs Variable Insurance Trust

GOLDMAN SACHS ASSET MANAGEMENT 32 OLD SLIP, NEW YORK, NEW YORK 10005

Annual Report

December 31, 2001

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Shareholder Letter

Dear Shareholders:

We are pleased to report on the performance of the Goldman Sachs Variable Insurance Trust — Growth and Income Fund. This annual report covers the one-year period that ended December 31, 2001.

Market Review

During the first half of 2001, the stock market was characterized by a return to investment fundamentals and a renewed awareness that earnings and cash flow are vital factors in determining a stock’s value. During the second half of 2001, amid numerous Federal Reserve Board rate cuts and downward revised company expectations, the markets were turbulent, as investors became increasingly speculative regarding the state of the economy. In general, investors rotated into defensive stocks, where the outlook seemed safer than in sectors such as Technology. Nearly all the major U.S. indices ended the year in negative territory. Despite this volatility, large cap value stocks, as represented by the Russell 1000 Value Index, outperformed their growth counterparts for the second consecutive year.

Performance Review

Over the one-year period that ended December 31, 2001, the Fund generated a -9.34% cumulative total return. Over the same time period the Fund’s benchmark, the Standard & Poor’s 500 Index (with dividends reinvested) generated a -11.88% cumulative total return.

Strong stock selection in the Technology sector helped performance last year, led by stocks such as Microsoft Corp. (3.9% of the portfolio as of December 31, 2001), International Business Machines Corp. (2.1%) and First Data Corp. (0.3%). Throughout the year, we aimed to stay invested in Technology stocks that had viable business markets, and those that could withstand the Technology bubble. Microsoft, supported by its broad, innovative product base, has been able to perform well despite slowing PC demand. Microsoft also has a strong financial base, as well as a forward thinking management team that allows it to invest in products with the most potential for future growth.

A negative contributor to performance was EMC Corp. We sold EMC in the middle of the year, due to our concerns over competitive price pressure, hardware commoditization, and excess capacity. Anadarko Petroleum (1.0%) was another negative contributor to results. The energy sector has suffered over the last year due to falling prices and supply pressures.

Investment Objective

The Fund seeks long-term growth of capital and growth of income through a diversified portfolio of equity securities.

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Shareholder Letter (continued)

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2001*


Company	Business	% Portfolio

Microsoft Corp.	Computer Software		3.9	%
General Electric Co.	Financial Services		3.2
Citigroup, Inc.	Banks		3.1
Exxon Mobil Corp.	Energy Resources		2.7
Wal-Mart Stores, Inc.	Department Stores		2.2
International Business Machines Corp.	Computer Software		2.1
Federal Home Loan Mortgage Corp.	Financial Services		2.0
ChevronTexaco Corp.	Energy Resources		1.9
XL Capital Ltd.	Property Insurance		1.8
SBC Communications, Inc.	Telephone		1.7

* Opinions expressed in this report represent our present opinions only. Reference to individual securities should not be construed as a commitment that such securities will be retained in the Fund. From time to time, the Fund may change the individual securities it holds, the number or types of securities held and the markets in which it invests. References to individual securities do not constitute a recommendation to the investor to buy, hold or sell such securities. In addition, references to past performance of the Fund do not indicate future returns, which are not guaranteed and will vary.

Outlook

Looking ahead, we believe that a low interest rate and lower energy cost environment will benefit many of the value names in the Fund. We continue to follow our opportunistic value strategy that emphasizes identifying quality companies selling at reasonable valuations. Historically, our bottom-up fundamental approach to finding stocks has helped us to locate strong prospects at the stock level. As investors become cautiously optimistic regarding the economic outlook for next year, our value strategy will continue to hold a philosophy that focuses on fundamental research and stock selection.

We thank you for your investment and look forward to serving your investment needs in the future.

Goldman Sachs Value Portfolio Management Team

January 11, 2002

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Performance Summary

December 31, 2001

The following graph shows the value as of December 31, 2001, of a $10,000 investment made on January 12, 1998 (commencement of operations). For comparative purposes, the performance of the Fund’s benchmark (the Standard and Poor’s 500 Index (“S&P 500 Index”)) is shown. This performance data represents past performance and should not be considered indicative of future performance which will fluctuate 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. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

Growth and Income Fund’s Lifetime Performance

Growth of a $10,000 Investment, Distributions Reinvested from January 12, 1998 to December 31, 2001.


	Since Inception	One Year




Average Annual Total Return through December 31, 2001




Growth and Income Fund (commenced January 12, 1998)	-1.00%	-9.34%

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Statement of Investments

December 31, 2001



Shares		Description	Value
Common Stocks – 94.9%

Airlines – 0.8%
	17,561	Southwest Airlines Co.	$	324,527

Alcohol – 0.9%
	7,996	Anheuser-Busch Cos., Inc.		361,499

Apartments – 0.3%
	4,275	Equity Residential Properties Trust		122,735

Apparel – 0.3%
	3,700	Jones Apparel Group, Inc.*		122,729

Banks – 7.5%
	6,450	Bank of America Corp.		406,028
	4,216	Bank One Corp.		164,635
	24,709	Citigroup, Inc.		1,247,310
	2,674	M&T Bank Corp.		194,801
	3,327	Mellon Financial Corp.		125,162
	6,556	PNC Financial Services Group		368,447
	11,429	U.S. Bancorp		239,209
	6,994	Wells Fargo & Co.		303,889

				3,049,481

Chemicals – 1.2%
	3,809	E.I. du Pont de Nemours & Co.		161,920
	1,904	Minnesota Mining & Manufacturing Co.		225,072
	3,214	The Dow Chemical Co.		108,569

				495,561

Computer Hardware – 1.7%
	16,380	Cisco Systems, Inc.*		296,642
	13,831	Dell Computer Corp.*		375,926

				672,568

Computer Software – 5.9%
	6,994	International Business Machines Corp.		845,995
	23,660	Microsoft Corp.*		1,567,948

				2,413,943

Defense/Aerospace – 1.8%
	3,875	General Dynamics Corp.		308,605
	3,008	Honeywell International, Inc.		101,731
	4,654	United Technologies Corp.		300,788

				711,124

Department Stores – 2.6%
	4,654	The May Department Stores Co.		172,105
	15,524	Wal-Mart Stores, Inc.		893,406

				1,065,511

Drugs – 8.5%
	5,657	American Home Products Corp.		347,114
	3,883	Amgen, Inc.*		219,157
	9,844	Bristol-Myers Squibb Co.		502,044
	3,859	Eli Lilly & Co.		303,086
	11,783	Merck & Co., Inc.		692,840
	15,191	Pfizer, Inc.		605,361
	8,556	Pharmacia Corp.		364,913
	11,647	Schering-Plough Corp.		417,079

				3,451,594

Electrical Utilities – 4.0%
	12,583	Energy East Corp.		238,951
	4,757	Entergy Corp.		186,046
	7,074	Exelon Corp.		338,703
	7,835	FirstEnergy Corp.		274,069
	8,800	PPL Corp.		306,680
	17,102	Reliant Resources, Inc.*		282,354

				1,626,803

Electronic Manufacturing Services – 0.6%
	11,250	Jabil Circuit, Inc.*		255,600

Energy Resources – 7.3%
	7,437	Anadarko Petroleum Corp.		422,793
	8,541	ChevronTexaco Corp.		765,359
	27,906	Exxon Mobil Corp.		1,096,706
	15,329	Pioneer Natural Resources Co.*		295,237
	7,996	Royal Dutch Petroleum Co. ADR		391,964

				2,972,059

Entertainment – 1.4%
	13,747	AOL Time Warner, Inc.*		441,279
	2,723	Viacom, Inc. Class B*		120,220

				561,499

Environmental Services – 0.8%
	9,873	Waste Management, Inc.		315,047

Financial Services – 8.1%
	2,880	American Express Co.		102,787
	7,596	Countrywide Credit Industries, Inc.		311,208
	12,632	Federal Home Loan Mortgage Corp.		826,133
	1,543	Federal National Mortgage Assoc.		122,668
	32,522	General Electric Co.		1,303,482
	4,757	Household International, Inc.		275,621
	4,129	J.P. Morgan Chase & Co.		150,089
	2,546	USA Education, Inc.		213,915

				3,305,903

Food & Beverage – 3.9%
	6,700	ConAgra Foods, Inc.		159,259
	14,877	H.J. Heinz Co.		611,742
	2,340	Hershey Foods Corp.		158,418
	7,138	PepsiCo, Inc.		347,549
	6,539	The Coca-Cola Co.		308,314

				1,585,282

Forest – 1.9%
	8,536	Bowater, Inc.		407,167
	9,206	International Paper Co.		371,462

				778,629

Gas Utilities – 1.0%
	11,702	KeySpan Corp.		405,474

Heavy Electrical – 0.4%
	3,093	Emerson Electric Co.		176,610

Heavy Machinery – 1.2%
	10,748	Deere & Co.		469,258

Home Products – 2.0%
	6,815	Kimberly-Clark Corp.		407,537
	5,116	The Procter & Gamble Co.		404,829

				812,366

4 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND



Shares		Description	Value
Common Stocks – (continued)

Industrial Parts – 1.6%
	2,650	American Standard Cos., Inc.*	$	180,810
	875	Parker-Hannifin Corp.		40,171
	7,096	Tyco International Ltd.		417,954

				638,935

Information Services – 1.4%
	16,250	Accenture Ltd.*		437,450
	1,578	First Data Corp.		123,794

				561,244

Life Insurance – 1.9%
	9,562	AFLAC, Inc.		234,843
	875	Cigna Corp.		81,069
	4,611	Lincoln National Corp.		223,956
	10,025	The Principal Financial Group, Inc.*		240,600

				780,468

Media – 3.8%
	6,336	Clear Channel Communications, Inc.*		322,566
	8,700	Comcast Corp.*		313,200
	6,650	Cox Communications, Inc.*		278,701
	18,504	Fox Entertainment Group, Inc.*		490,911
	10,542	Liberty Media Corp. Series A*		147,588

				1,552,966

Medical Products – 2.6%
	6,865	Abbott Laboratories		382,724
	2,442	Baxter International, Inc.		130,964
	8,968	Johnson & Johnson		530,009

				1,043,697

Mining – 0.6%
	7,010	Alcoa, Inc.		249,206

Motor Vehicle – 0.3%
	1,500	Johnson Controls, Inc.		121,125

Office/Industry/Mixed – 0.2%
	2,100	Boston Properties, Inc.		79,800

Oil Refining – 0.1%
	1,106	El Paso Corp.		49,339

Oil Services – 0.7%
	4,448	Baker Hughes, Inc.		162,219
	3,317	Transocean Sedco Forex, Inc.		112,181

				274,400

Property Insurance – 5.4%
	4,269	AMBAC Financial Group, Inc.		247,004
	8,202	American International Group, Inc.		651,239
	4,089	RenaissanceRe Holdings Ltd. Series B		390,091
	3,008	The Hartford Financial Services Group, Inc.		188,993
	7,868	XL Capital Ltd.		718,820

				2,196,147

Publishing – 0.6%
	4,115	Dow Jones & Co., Inc.		225,214

Railroads – 0.7%
	5,888	Canadian National Railway Co.		284,273

Securities/Asset Management – 1.5%
	9,101	John Hancock Financial Services, Inc.		375,871
	4,475	Merrill Lynch & Co., Inc.		233,237

				609,108

Semiconductors – 3.4%
	72,604	Agere Systems, Inc.*		413,117
	7,602	Arrow Electronics, Inc.*		227,300
	15,045	Intel Corp.		473,165
	7,275	Texas Instruments, Inc.		203,700
	2,100	Xilinx, Inc.*		82,005

				1,399,287

Specialty Retail – 0.3%
	3,400	CVS Corp.		100,640

Telecommunications Equipment – 0.5%
	3,779	QUALCOMM, Inc.*		190,840

Telephone – 3.8%
	13,065	AT&T Corp.		236,999
	17,852	SBC Communications, Inc.		699,263
	7,656	Sprint Corp.		153,733
	9,283	Verizon Communications, Inc.*		440,571

				1,530,566

Tobacco – 1.4%
	12,418	Philip Morris Cos., Inc.		569,365

TOTAL COMMON STOCKS
(Cost $38,398,552)			$	38,512,422



Principal		Interest			Maturity
Amount		Rate			Date		Value
Repurchase Agreement – 5.6%

Joint Repurchase Agreement Account^
$	2,300,000		1.78	%		01/02/2002	$	2,300,000

TOTAL REPURCHASE AGREEMENT
(Cost $2,300,000)							$	2,300,000

TOTAL INVESTMENTS
(Cost $40,698,552)							$	40,812,422


*		Non-income producing security.

^		Joint repurchase agreement was entered into on December 31, 2001.

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. 5

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM U.S. EQUITY FUND

Shareholder Letter

Dear Shareholders:

We are pleased to report on the performance of the Goldman Sachs Variable Insurance Trust — CORE^SM U.S. Equity Fund. This annual report covers the one-year period that ended December 31, 2001.

Market Review

For the year ended December 31, 2001, the S&P 500 Index (the “Index”) lost 11.88%. Though the Index bounced back in the fourth quarter, it was down over 20% during the first nine months of the year. The benchmark posted negative performance in all but one sector (Consumer Cyclicals), with the Utilities and Technology sectors posting the largest absolute negative returns.

Performance Review

Over the one-year period that ended December 31, 2001 the Fund generated a -11.94% cumulative total return, slightly underperforming that of its benchmark, the Standard & Poor’s 500 Index (with dividends reinvested), which generated a -11.88% cumulative total return.

Among our CORE themes, Fundamental Research was down overall during the year, although it came back somewhat at the beginning of the fourth quarter. Momentum’s returns fluctuated greatly, as it experienced excellent months followed by more difficult months, and vice versa. Our Profitability theme was the biggest positive contributor to excess returns relative to the benchmark, as it added considerable value in nearly all 12 months. Valuation also enhanced results versus the benchmark, while Earnings Quality was flat for the year as a whole.

Stock selection was a positive contributor in eight of the 13 sectors that make up the Fund, most notably in the Energy and Telecommunications sectors. The only area where stock selection suffered notably was the Healthcare sector.

Investment Objective and Strategies

The Fund seeks long-term capital growth and dividend income through a broadly diversified portfolio of large-cap and blue chip equity securities representing all major sectors of the U.S. economy.

The Fund employs a disciplined approach that combines fundamental investment research provided by Goldman, Sachs & Co.’s Global Investment Research Department and consensus opinions with quantitative analysis generated by the Asset Management Division’s proprietary model. This quantitative system evaluates each stock using many different criteria, including valuation measures, growth expectations, earnings momentum and risk profile. It also objectively analyzes the impact of current economic conditions on different types of stocks to determine where the emphasis should be placed. While maintaining a profile close to that of the benchmark, those stocks ranked highly by both the quantitative model and the Goldman Sachs Global Investment Research Department are selected to have overweight positions in the portfolio.

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM U.S. EQUITY FUND

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2001*


Company	Business	% Portfolio

General Electric Co.	Financial Services		3.1	%
Microsoft Corp.	Computer Software		3.0
Citigroup, Inc.	Banks		2.8
Exxon Mobil Corp.	Energy Resources		2.6
Pfizer, Inc.	Drugs		2.5
Wal-Mart Stores, Inc.	Department Stores		2.5
Merck & Co., Inc.	Drugs		2.1
International Business Machines Corp.	Computer Software		1.9
The Home Depot, Inc.	Specialty Retail		1.9
Bank of America Corp.	Banks		1.9

Outlook

Looking ahead, we continue to believe that cheaper stocks should outpace more expensive ones and good momentum stocks should do better than poor momentum stocks. We also prefer names favored by fundamental research analysts and companies that have sustainable earnings and strong profit margins. As such, we anticipate remaining fully invested and expect that the value we add over time will be due to stock selection, as opposed to sector or size allocations.

We thank you for your investment and look forward to your continued confidence.

Goldman Sachs Quantitative Equity Management Team

January 11, 2002

CORE is a service mark of Goldman, Sachs & Co.

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM U.S. EQUITY FUND

Performance Summary

December 31, 2001

The following graph shows the value as of December 31, 2001, of a $10,000 investment made on February 13, 1998 (commencement of operations). For comparative purposes, the performance of the Fund’s benchmark (the Standard and Poor’s 500 Index (“S&P 500 Index”)) is shown. This performance data represents past performance and should not be considered indicative of future performance which will fluctuate 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. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

CORE U.S. Equity Fund’s Lifetime Performance

Growth of a $10,000 Investment, Distributions Reinvested from February 13, 1998 to December 31, 2001.


	Since Inception	One Year




Average Annual Total Return through December 31, 2001




CORE U.S. Equity Fund (commenced February 13, 1998)	3.31%	-11.94%

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM U.S. EQUITY FUND

Statement of Investments

December 31, 2001



Shares		Description	Value
Common Stocks – 98.7%

Airlines – 0.1%
	11,000	AMR Corp.*	$	243,870

Apparel – 0.1%
	2,800	Liz Claiborne, Inc.		139,300

Banks – 7.8%
	10,000	Associated Banc-Corp.		352,900
	49,431	Bank of America Corp.		3,111,681
	90,966	Citigroup, Inc.		4,591,964
	2,100	Comerica, Inc.		120,330
	23,050	Fifth Third Bancorp		1,419,419
	2,500	M&T Bank Corp.		182,125
	2,600	Marshall & Ilsley Corp.		164,528
	2,600	PNC Financial Services Group		146,120
	8,100	State Street Corp.		423,225
	27,900	SunTrust Banks, Inc.		1,749,330
	6,700	U.S. Bancorp		140,231
	3,500	Union Planters Corp.		157,955
	6,600	Wells Fargo & Co.		286,770

				12,846,578

Chemicals – 1.0%
	11,100	Ashland, Inc.		511,488
	2,200	Minnesota Mining & Manufacturing Co.		260,062
	400	PPG Industries, Inc.		20,688
	3,000	Praxair, Inc.		165,750
	21,700	The Dow Chemical Co.		733,026

				1,691,014

Computer Hardware – 5.5%
	45,100	Cisco Systems, Inc.*		816,761
	28,000	Compaq Computer Corp.		273,280
	82,300	Dell Computer Corp.*		2,236,914
	100,100	Hewlett-Packard Co.		2,056,054
	62,000	Ingram Micro, Inc.*		1,073,840
	7,100	Juniper Networks, Inc.*		134,545
	9,700	Pitney Bowes, Inc.		364,817
	40,600	Sun Microsystems, Inc.*		499,380
	34,300	Tech Data Corp.*		1,484,504

				8,940,095

Computer Software – 6.0%
	26,100	International Business Machines Corp.		3,157,056
	74,300	Microsoft Corp.*		4,923,861
	4,400	NCR Corp.*		162,184
	109,900	Oracle Corp.*		1,517,719
	3,900	PeopleSoft, Inc.*		156,780

				9,917,600

Construction – 0.1%
	3,600	Lennar Corp.		168,552

Consumer Durables – 0.0%
	100	The Sherwin-Williams Co.		2,750

Defense/Aerospace – 1.6%
	8,100	General Dynamics Corp.		645,084
	5,400	ITT Industries, Inc.		272,700
	6,600	Lockheed Martin Corp.		308,022
	6,900	Rockwell Collins, Inc.		134,550
	9,500	The Boeing Co.		368,410
	13,600	United Technologies Corp.		878,968

				2,607,734

Department Stores – 3.2%
	5,200	Federated Department Stores, Inc.*		212,680
	4,900	Sears, Roebuck & Co.		233,436
	17,500	Target Corp.		718,375
	70,000	Wal-Mart Stores, Inc.		4,028,500

				5,192,991

Drugs – 10.7%
	2,800	Allergan, Inc.		210,140
	2,700	American Home Products Corp.		165,672
	44,100	Amgen, Inc.*		2,489,004
	23,000	Bristol-Myers Squibb Co.		1,173,000
	25,300	Cardinal Health, Inc.		1,635,898
	2,600	Chiron Corp.*		113,984
	25,600	Eli Lilly & Co.		2,010,624
	46,500	McKesson Corp.		1,739,100
	59,300	Merck & Co., Inc.		3,486,840
	102,950	Pfizer, Inc.		4,102,558
	7,079	Pharmacia Corp.		301,919
	10,200	SICOR, Inc.*		159,936

				17,588,675

Electrical Equipment – 1.6%
	4,500	Cabot Microelectronics Corp.*		356,625
	3,700	Danaher Corp.		223,147
	5,700	Jabil Circuit, Inc.*		129,504
	200	L-3 Communications Holdings, Inc.*		18,000
	6,600	Molex, Inc.		204,270
	39,100	Motorola, Inc.		587,282
	21,800	Sanmina Corp.*		433,820
	8,100	Scientific-Atlanta, Inc.		193,914
	23,300	Solectron Corp.*		262,824
	11,200	Tellabs, Inc.*		168,336

				2,577,722

Electrical Utilities – 2.6%
	20,200	Calpine Corp.*		339,158
	3,800	Duke Energy Corp.		149,188
	72,900	Dynegy, Inc.		1,858,950
	27,700	Entergy Corp.		1,083,347
	13,056	Mirant Corp.*		209,157
	25,600	Reliant Energy, Inc.		678,912

				4,318,712

The accompanying notes are an integral part of these financial statements. 9

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM U.S. EQUITY FUND

Statement of Investments (continued)

December 31, 2001



Shares		Description	Value
Common Stocks – (continued)

Energy Resources – 4.2%
	19,000	Anadarko Petroleum Corp.	$	1,080,150
	10,100	Conoco, Inc.		285,830
	107,212	Exxon Mobil Corp.		4,213,432
	3,900	Occidental Petroleum Corp.		103,467
	5,600	Phillips Petroleum Co.		337,456
	17,000	Royal Dutch Petroleum Co. ADR		833,340

				6,853,675

Entertainment – 2.6%
	73,350	AOL Time Warner, Inc.*		2,354,535
	2,400	Metro-Goldwyn-Mayer, Inc.*		52,560
	43,173	Viacom, Inc. Class B*		1,906,088

				4,313,183

Environmental Services – 0.5%
	25,300	Waste Management, Inc.		807,323

Equity REIT – 0.1%
	6,300	iStar Financial, Inc.		157,185

Financial Services – 5.8%
	27,900	Countrywide Credit Industries, Inc.		1,143,063
	4,500	Dun & Bradstreet Corp.*		158,850
	2,600	Federal Home Loan Mortgage Corp.		170,040
	16,800	Federal National Mortgage Assoc.		1,335,600
	125,000	General Electric Co.		5,010,000
	41,610	J.P. Morgan Chase & Co.		1,512,524
	3,200	MBNA Corp.		112,640

				9,442,717

Food & Beverage – 4.0%
	13,900	Archer-Daniels-Midland Co.		199,465
	12,100	General Mills, Inc.		629,321
	41,300	PepsiCo, Inc.		2,010,897
	14,900	Sara Lee Corp.		331,227
	12,400	Smithfield Foods, Inc.*		273,296
	4,300	Supervalu, Inc.		95,116
	50,300	SYSCO Corp.		1,318,866
	15,000	The Coca-Cola Co.		707,250
	7,700	The Pepsi Bottling Group, Inc.		180,950
	13,000	Unilever NV		748,930

				6,495,318

Forest – 0.7%
	21,300	Weyerhaeuser Co.		1,151,904

Gas Utilities – 0.4%
	6,400	Oneok, Inc.		114,176
	18,500	UtiliCorp United, Inc.		465,645

				579,821

Gold – 0.1%
	12,900	Freeport-McMoRan Copper & Gold, Inc. Class B*		172,731

Grocery – 0.1%
	6,500	Albertson’s, Inc.		204,685

Heavy Electrical – 0.4%
	10,900	Emerson Electric Co.		622,390

Heavy Machinery – 0.5%
	12,800	Caterpillar, Inc.		668,800
	4,200	Cummins, Inc.		161,868

				830,668

Home Products – 3.1%
	11,700	Avon Products, Inc.		544,050
	26,000	Colgate-Palmolive Co.		1,501,500
	17,400	The Clorox Co.		688,170
	29,400	The Procter & Gamble Co.		2,326,422

				5,060,142

Industrial Parts – 1.5%
	4,200	Pentair, Inc.		153,342
	5,500	Textron, Inc.		228,030
	36,550	Tyco International Ltd.		2,152,795

				2,534,167

Information Services – 3.0%
	28,100	Electronic Data Systems Corp.		1,926,255
	25,300	First Data Corp.		1,984,785
	9,600	Omnicom Group, Inc.		857,760
	8,100	Total Systems Services, Inc.		171,558

				4,940,358

Internet – 0.1%
	12,000	Yahoo!, Inc.*		212,880

Leisure – 0.5%
	11,100	Cendant Corp.*		217,671
	11,600	Harley-Davidson, Inc.		629,996

				847,667

Life Insurance – 1.3%
	41,900	MetLife, Inc.		1,327,392
	18,200	Nationwide Financial Services, Inc.		754,572

				2,081,964

Media – 1.1%
	14,100	Clear Channel Communications, Inc.*		717,831
	5,000	Fox Entertainment Group, Inc.*		132,650
	44,200	The Walt Disney Co.		915,824

				1,766,305

Medical Products – 3.7%
	32,100	Abbott Laboratories		1,789,575
	4,400	Baxter International, Inc.		235,972
	48,200	Johnson & Johnson		2,848,620
	21,800	Medtronic, Inc.		1,116,378

				5,990,545

10 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM U.S. EQUITY FUND



Shares		Description	Value
Common Stocks – (continued)

Medical Providers – 0.7%
	10,300	Caremark Rx, Inc.*	$	167,993
	14,100	UnitedHealth Group, Inc.		997,857

				1,165,850

Mining – 0.5%
	6,100	Alcoa, Inc.		216,855
	25,600	Massey Energy Co.		530,688

				747,543

Motor Vehicle – 2.3%
	42,400	General Motors Corp.		2,060,640
	21,500	Johnson Controls, Inc.		1,736,125

				3,796,765

Office/Industry/Mixed – 0.1%
	5,500	Equity Office Properties Trust		165,440

Oil Refining – 0.4%
	7,700	El Paso Corp.		343,497
	12,000	USX-Marathon Group		360,000

				703,497

Oil Services – 0.7%
	16,100	Baker Hughes, Inc.		587,167
	37,700	Halliburton Co.		493,870

				1,081,037

Property Insurance – 2.4%
	25,306	American International Group, Inc.		2,009,296
	7,300	CNA Financial Corp.*		212,941
	26,300	Loews Corp.		1,456,494
	4,500	The Hartford Financial Services Group, Inc.		282,735

				3,961,466

Publishing – 0.5%
	19,600	Deluxe Corp.		814,968

Railroads – 0.6%
	27,400	CSX Corp.		960,370

Restaurants – 0.2%
	7,000	Darden Restaurants, Inc.		247,800

Securities/Asset Management – 2.6%
	9,200	John Hancock Financial Services, Inc.		379,960
	24,900	Lehman Brothers Holdings, Inc.		1,663,320
	7,900	Morgan Stanley		441,926
	5,100	SEI Investments Co.		230,061
	27,200	The Bear Stearns Cos., Inc.		1,595,008

				4,310,275

Semiconductors – 2.7%
	7,200	Applied Materials, Inc.*		288,720
	22,500	Arrow Electronics, Inc.*		672,750
	22,600	Avnet, Inc.		575,622
	66,000	Intel Corp.		2,075,700
	10,200	NVIDIA Corp.*		682,380
	4,200	Semtech Corp.*		149,898

				4,445,070

Specialty Retail – 4.0%
	10,600	AutoZone, Inc.*		761,080
	20,200	Best Buy Co., Inc.*		1,504,496
	3,000	BJ’s Wholesale Club, Inc.*		132,300
	20,200	Lowes Co., Inc.		937,482
	61,600	The Home Depot, Inc.		3,142,216

				6,477,574

Telecommunications Equipment – 0.2%
	37,100	Corning, Inc.		330,932

Telephone – 3.5%
	54,565	AT&T Corp.		989,809
	6,900	BellSouth Corp.		263,235
	14,500	Qwest Communications International, Inc.		204,885
	11,022	SBC Communications, Inc.		431,732
	49,194	Verizon Communications, Inc.		2,334,747
	111,850	WorldCom, Inc.-WorldCom Group		1,574,848

				5,799,256

Thrifts – 0.4%
	18,750	Washington Mutual, Inc.		613,125

Tobacco – 0.3%
	8,100	R.J. Reynolds Tobacco Holdings, Inc.		456,030

Truck Freight – 0.6%
	17,800	United Parcel Service, Inc.		970,100

Wireless – 2.0%
	7,000	ALLTEL Corp.		432,110
	153,224	AT&T Wireless Services, Inc.*		2,201,829
	7,600	Telephone & Data Systems, Inc.		682,100
	500	United States Cellular Corp.*		22,625

				3,338,664

TOTAL COMMON STOCKS
(Cost $164,655,370)			$	161,686,983

The accompanying notes are an integral part of these financial statements. 11

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM U.S. EQUITY FUND

Statement of Investments (continued)

December 31, 2001



Principal		Interest			Maturity
Amount		Rate			Date		Value
Repurchase Agreement – 0.6%

Joint Repurchase Agreement Account^
$	1,000,000		1.78	%		01/02/2002	$	1,000,000

TOTAL REPURCHASE AGREEMENT
(Cost $1,000,000)							$	1,000,000

TOTAL INVESTMENTS
(Cost $165,655,370)							$	162,686,983


*		Non-income producing security.

^		Joint repurchase agreement was entered into on December 31, 2001.

The percentage shown for each investment category reflects the value of investments in that category as a percentage of total net assets.

12 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM LARGE CAP GROWTH FUND

Shareholder Letter

Dear Shareholders:

We are pleased to report on the performance of the Goldman Sachs Variable Insurance Trust — CORE^SM Large Cap Growth Fund. This annual report covers the one-year period that ended December 31, 2001.

Market Review

The Russell 1000 Growth Index (the “Index”) fell 20.43% during 2001, with the Consumer Cyclicals sector being the only positive contributor. The Technology sector was down 30.5% and, at 33% of the benchmark weight, was by far the biggest contributor to the decline. The next largest contributors to negative returns were the Healthcare sector (-16.5% and a 23% weight) and the Financial sector (-12.3% and a 9% weight). While the Index actually posted positive performance in the second and fourth quarters of 2001, its large declines in the first and third quarters led to the overall loss for the year.

Performance Review

Over the one-year period that ended December 31, 2001 the Fund generated a -20.76% cumulative total return. Over the same time period the Fund’s benchmark, the Russell 1000 Growth Index generated a -20.43% cumulative return.

Among our investment themes, Fundamental Research was down overall during the year versus the benchmark. Momentum’s returns fluctuated greatly, as it experienced some strong months followed by more difficult months, and vice versa. Our Profitability and Valuation themes performed relatively well compared to the Russell 1000 Growth Index, while Earnings Quality ended flat for the year, in line with how it performed on a monthly basis.

The Fund seeks sector weightings and distribution among size categories close to those of the Russell 1000 Growth Index. On a sector basis, stock selection in Technology and Consumer Cyclicals proved to be the greatest detractors from excess returns relative to the benchmark, while our holdings in the Consumer Non-Cyclicals and Telecommunications sectors enhanced relative returns.

Investment Objective

The Fund seeks long-term capital growth, primarily through a broadly diversified portfolio of equity securities that are expected to have better prospects for earnings growth than the growth rate of the general domestic economy.

The Fund employs a disciplined approach that combines fundamental investment research provided by Goldman, Sachs & Co.’s Global Investment Research Department and consensus opinions with quantitative analysis generated by the Asset Management Division’s proprietary model. This quantitative system evaluates each stock using many different criteria, including valuation measures, growth expectations, earnings momentum and risk profile. It also objectively analyzes the impact of current economic conditions on different types of stocks to determine where the emphasis should be placed. The portfolio construction process evaluates stocks based on their overall expected return and their contribution to portfolio risk. The final portfolio is the one that has the highest expected return for the targeted amount of risk.

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM LARGE CAP GROWTH FUND

Shareholder Letter (continued)

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2001*


Company	Business	% Portfolio

General Electric Co.	Financial Services		7.1	%
Pfizer, Inc.	Drugs		5.7
Microsoft Corp.	Computer Software		4.9
Intel Corp.	Semiconductors		3.5
AOL Time Warner, Inc.	Entertainment		3.2
International Business Machines Corp.	Computer Software		2.9
Merck & Co., Inc.	Drugs		2.5
Amgen, Inc.	Drugs		2.4
Wal-Mart Stores, Inc.	Department Stores		2.4
The Home Depot, Inc.	Specialty Retail		2.4

Outlook

We thank you for your investment and look forward to your continued confidence.

Goldman Sachs Quantitative Equity Management Team

January 11, 2002

CORE is a service mark of Goldman, Sachs & Co.

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM LARGE CAP GROWTH FUND

Performance Summary

December 31, 2001

The following graph shows the value as of December 31, 2001, of a $10,000 investment made on February 13, 1998 (commencement of operations). For comparative purposes, the performance of the Fund’s benchmark (Russell 1000 Growth Index) is shown. All performance data shown represents past performance and should not be considered indicative of future performance which will fluctuate 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. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

CORE Large Cap Growth Fund’s Lifetime Performance

Growth of a $10,000 Investment, Distributions Reinvested from February 13, 1998 to December 31, 2001.


	Since Inception	One Year




Average Annual Total Return through December 31, 2001




CORE Large Cap Growth Fund (commenced February 13, 1998)	-0.70%	-20.76%

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM LARGE CAP GROWTH FUND

Statement of Investments

December 31, 2001



Shares		Description	Value
Common Stocks – 98.1%

Apartments REIT – 0.1%
	800	Archstone-Smith Trust	$	21,040

Apparel – 0.2%
	900	Liz Claiborne, Inc.		44,775

Banks – 1.5%
	4,600	Bank of America Corp.		289,570
	800	Investors Financial Services Corp.		52,968

				342,538

Chemicals – 0.1%
	500	Sigma-Aldrich Corp.		19,705

Clothing – 0.4%
	1,400	Ross Stores, Inc.		44,912
	700	The Neiman Marcus Group, Inc.*		21,749
	800	The Talbots, Inc.		29,000

				95,661

Computer Hardware – 7.0%
	22,200	Cisco Systems, Inc.*		402,042
	14,200	Dell Computer Corp.*		385,956
	5,000	EMC Corp.*		67,200
	10,200	Gateway, Inc.*		82,008
	6,800	Hewlett-Packard Co.		139,672
	2,200	Imation Corp.*		47,476
	800	InFocus Corp.*		17,616
	4,700	Ingram Micro, Inc.*		81,404
	3,400	Juniper Networks, Inc.*		64,430
	1,300	Storage Technology Corp.*		26,871
	19,800	Sun Microsystems, Inc.*		243,540

				1,558,215

Computer Software – 11.4%
	2,600	Adobe Systems, Inc.		80,730
	5,400	International Business Machines Corp.		653,184
	900	Mentor Graphics Corp.*		21,213
	16,600	Microsoft Corp.*		1,100,082
	2,500	NCR Corp.*		92,150
	25,400	Oracle Corp.*		350,774
	1,900	PeopleSoft, Inc.*		76,380
	2,000	Sybase, Inc.*		31,520
	2,100	Symantec Corp.*		139,293

				2,545,326

Construction – 0.2%
	600	Jacobs Engineering Group, Inc.*		39,600

Defense/Aerospace – 0.5%
	3,100	Goodrich Corp.		82,522
	600	ITT Industries, Inc.		30,300

				112,822

Department Stores – 2.6%
	900	Sears, Roebuck & Co.		42,876
	9,400	Wal-Mart Stores, Inc.		540,970

				583,846

Drugs – 19.4%
	3,100	Allergan, Inc.		232,655
	2,700	American Home Products Corp.		165,672
	400	AmerisourceBergen Corp.		25,420
	9,700	Amgen, Inc.*		547,468
	800	Andrx Group*		56,328
	5,800	Bristol-Myers Squibb Co.		295,800
	6,600	Cardinal Health, Inc.		426,756
	1,000	Chiron Corp.*		43,840
	3,400	Eli Lilly & Co.		267,036
	500	Forest Laboratories, Inc.*		40,975
	800	Genentech, Inc.*		43,400
	1,025	IVAX Corp.*		20,644
	8,500	McKesson Corp.		317,900
	9,600	Merck & Co., Inc.		564,480
	31,850	Pfizer, Inc.		1,269,222
	1,000	SICOR, Inc.*		15,680

				4,333,276

Electrical Equipment – 2.8%
	500	Cabot Microelectronics Corp.*		39,625
	3,800	Jabil Circuit, Inc.*		86,336
	400	KLA-Tencor Corp.*		19,824
	1,300	L-3 Communications Holdings, Inc.*		117,000
	4,500	Metromedia Fiber Network, Inc.*		1,980
	400	Mettler-Toledo International, Inc.*		20,740
	2,975	Molex, Inc.		92,076
	4,900	Motorola, Inc.		73,598
	3,500	Sanmina Corp.*		69,650
	700	SPX Corp.*		95,830

				616,659

Electrical Utilities – 2.1%
	15,600	Dynegy, Inc.		397,800
	5,000	Mirant Corp.*		80,100

				477,900

Energy Resources – 0.1%
	900	Occidental Petroleum Corp.		23,877

Entertainment – 4.8%
	22,400	AOL Time Warner, Inc.*		719,040
	8,180	Viacom, Inc. Class B*		361,147

				1,080,187

Financial Services – 8.5%
	4,000	Countrywide Credit Industries, Inc.		163,880
	300	Federal National Mortgage Assoc		23,850
	39,700	General Electric Co.		1,591,176
	1,100	Household International, Inc.		63,734
	1,500	IndyMac Bancorp, Inc.*		35,070
	600	J.P. Morgan Chase & Co.		21,810

				1,899,520

Food & Beverage – 2.7%
	800	Dole Food Co., Inc.		21,464
	2,700	Interstate Bakeries Corp.		65,286
	4,360	PepsiCo, Inc.		212,288

16 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM LARGE CAP GROWTH FUND



Shares		Description	Value
Common Stocks – (continued)

Food & Beverage – (continued)
	2,700	Smithfield Foods, Inc.*	$	59,508
	5,200	SYSCO Corp.		136,344
	1,400	The Coca-Cola Co.		66,010
	1,800	The Pepsi Bottling Group, Inc.		42,300

				603,200

Forest – 0.2%
	1,400	Georgia-Pacific Corp.		38,654

Gold – 0.1%
	1,100	Newmont Mining Corp.		21,021

Grocery – 0.6%
	1,400	Albertson’s, Inc.		44,086
	2,300	Safeway, Inc.*		96,025

				140,111

Home Products – 1.7%
	1,600	Avon Products, Inc.		74,400
	2,400	Colgate-Palmolive Co.		138,600
	2,200	The Procter & Gamble Co.		174,086

				387,086

Industrial Parts – 1.2%
	800	Textron, Inc.		33,168
	4,100	Tyco International Ltd.		241,490

				274,658

Information Services – 3.2%
	900	Affiliated Computer Services, Inc.*		95,517
	6,400	Electronic Data Systems Corp.		438,720
	2,100	Omnicom Group, Inc.		187,635

				721,872

Internet – 0.7%
	400	CheckFree Corp.*		7,200
	3,700	EarthLink, Inc.*		45,029
	1,500	Expedia, Inc.*		60,915
	1,000	Hotel Reservations Network, Inc.*		46,000

				159,144

Leisure – 0.3%
	1,200	Harley-Davidson, Inc.		65,172

Life Insurance – 0.3%
	1,800	Nationwide Financial Services, Inc.		74,628

Media – 0.6%
	1,300	Clear Channel Communications, Inc.*		66,183
	2,300	General Motors Corp. Class H*		35,535
	1,100	The Interpublic Group of Cos., Inc.		32,494

				134,212

Medical Products – 5.3%
	6,400	Abbott Laboratories		356,800
	3,900	Henry Schein, Inc.*		144,417
	7,200	Johnson & Johnson		425,520
	3,500	Medtronic, Inc.		179,235
	2,300	STERIS Corp.*		42,021
	600	Stryker Corp.		35,022

				1,183,015

Medical Providers – 0.4%
	1,400	UnitedHealth Group, Inc.		99,078

Oil Refining – 0.1%
	700	Black Hills Corp.		23,688

Oil Services – 0.4%
	1,500	Baker Hughes, Inc.		54,705
	1,900	Halliburton Co.		24,890

				79,595

Property Insurance – 1.6%
	2,800	American International Group, Inc.		222,320
	400	American National Insurance Co.		33,640
	1,900	Loews Corp.		105,222

				361,182

Publishing – 0.5%
	1,900	Deluxe Corp.		79,002
	1,200	Wallace Computer Services, Inc.		22,788

				101,790

Securities/Asset Management – 1.5%
	1,200	ETRADE Group, Inc.		12,300
	600	Lehman Brothers Holdings, Inc.		40,080
	1,000	SEI Investments Co.		45,110
	1,400	The Bear Stearns Cos., Inc.		82,096
	2,800	The John Nuveen Co.		149,744

				329,330

Semiconductors – 6.3%
	6,700	Avnet, Inc.		170,649
	3,600	Axcelis Technologies, Inc.*		46,404
	4,500	Fairchild Semiconductor Corp.*		126,900
	24,800	Intel Corp.		779,960
	600	Intersil Corp.*		19,350
	4,100	LSI Logic Corp.*		64,698
	1,400	Semtech Corp.*		49,966
	5,200	Texas Instruments, Inc.		145,600

				1,403,527

Specialty Retail – 4.6%
	1,000	AutoZone, Inc.*		71,800
	2,800	Best Buy Co., Inc.*		208,544
	500	BJ’s Wholesale Club, Inc.*		22,050
	600	Krispy Kreme Doughnuts, Inc.*		26,520
	1,000	Longs Drug Stores Corp.		23,380
	10,500	The Home Depot, Inc.		535,605
	3,900	Walgreen Co.		131,274

				1,019,173

The accompanying notes are an integral part of these financial statements. 17

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM LARGE CAP GROWTH FUND

Statement of Investments (continued)

December 31, 2001



Shares		Description	Value
Common Stocks – (continued)

Telecommunications Equipment – 1.1%
	7,100	Corning, Inc.	$	63,332
	3,800	QUALCOMM, Inc.*		191,900

				255,232

Telephone – 0.3%
	2,300	BCE, Inc.		52,440
	400	WorldCom, Inc.-MCI Group		5,080
	1,518	WorldCom, Inc.-WorldCom Group		21,374

				78,894

Truck Freight – 0.1%
	400	United Parcel Service, Inc.		21,800

Wireless – 2.6%
	1,600	3Com Corp.*		10,208
	6,700	American Tower Corp. Class A*		63,449
	26,500	AT&T Wireless Services, Inc.*		380,805
	200	Telephone & Data Systems, Inc.		17,950
	1,700	United States Cellular Corp.*		76,925
	800	UTStarcom, Inc.*		22,800

				572,137

TOTAL COMMON STOCKS
(Cost $23,219,431)			$	21,943,146

Mutual Funds – 1.3%

	5,700	iShares Russell 1000 Growth Index* Fund	$	290,358

TOTAL MUTUAL FUNDS
(Cost $291,676)			$	290,358

TOTAL INVESTMENTS
(Cost $23,511,107)			$	22,233,504


*		Non-income producing security.

The percentage shown for each investment category reflects the value of investments in that category as a percentage of total net assets.

18 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM SMALL CAP EQUITY FUND

Shareholder Letter

Dear Shareholders:

We are pleased to report on the performance of the Goldman Sachs Variable Insurance Trust — CORE^SM Small Cap Equity Fund. This annual report covers the one-year period that ended December 31, 2001.

Market Review

The Russell 2000 Index (the “Index”) gained 2.49% during 2001. Within the Index the Consumer Cyclicals sector was the biggest contributor to the rise, as it posted a 24.6% return. The next largest contributors were the Financial and Consumer Services sectors. Conversely, the Technology sector was the weakest performing sector within the Index.

Performance Review

Over the one-year period that ended December 31, 2001 the Fund generated a 4.53% cumulative total return. Over the same time period the Fund’s benchmark, the Russell 2000 Index (with dividends reinvested) generated a 2.49% cumulative total return.

Of the CORE themes, Profitability, which favors companies with sound fundamentals, such as high profit margins and good operating efficiency, was the biggest positive contributor to excess returns relative to the benchmark. Valuation also performed well during the year, contributing positively to excess returns versus the benchmark in three out of four quarters. Though Momentum was up in the second and third quarters, its struggles in the first and fourth quarters caused it to be the biggest detractor from relative returns. Fundamental Research also was down for the year, while Earnings Quality ended flat.

Stock selection was a positive contributor in nine of the 13 sectors that make up the Fund. The best relative returns were generated in the Technology and Healthcare sectors, while it lagged the benchmark most notably in the Financial and Consumer Non-Cyclicals sectors.

Investment Objective

The Fund seeks long-term capital growth, primarily through a broadly diversified portfolio of equity securities of U.S. issuers which are included in the Russell 2000 Index at the time of investment.

The Fund employs a disciplined approach that combines fundamental investment research provided by Goldman, Sachs & Co.’s Global Investment Research Department and consensus opinions with quantitative analysis generated by the Asset Management Division’s proprietary model. This quantitative system evaluates each stock using many different criteria, including valuation measures, growth expectations, earnings momentum and risk profile. It also objectively analyzes the impact of current economic conditions on different types of stocks to determine where the emphasis should be placed. The portfolio construction process evaluates stocks based on their overall expected return and their contribution to portfolio risk. The final portfolio is the one that has the highest potential return for the targeted amount of risk.

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM SMALL CAP EQUITY FUND

Shareholder Letter (continued)

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2001*


Company	Business	% Portfolio

The Great Atlantic & Pacific Tea Co., Inc.	Grocery		1.1	%
Polaris Industries, Inc.	Leisure		0.7
The Toro Co.	Consumer Durables		0.7
Diagnostic Products Corp.	Drugs		0.7
The John Nuveen Co.	Security/Asset Management		0.7
Amli Residential Properties Trust	Equity REIT		0.6
Oneok, Inc.	Gas Utilities		0.6
Hughes Supply, Inc.	Industrial Parts		0.6
Airborne, Inc.	Truck Freight		0.6
Commercial Federal Corp.	Banks		0.5

Outlook

We thank you for your investment and look forward to your continued confidence.

Goldman Sachs Quantitative Equity Management Team

January 11, 2002

CORE is a service mark of Goldman, Sachs & Co.

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM SMALL CAP EQUITY FUND

Performance Summary

December 31, 2001

The following graph shows the value as of December 31, 2001, of a $10,000 investment made February 13, 1998 (commencement of operations). For comparative purposes, the performance of the Fund’s benchmark (Russell 2000 Index) is shown. All performance data shown represents past performance and should not be considered indicative of future performance which will fluctuate 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. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

CORE Small Cap Equity Fund’s Lifetime Performance

Growth of a $10,000 investment, Distributions Reinvested from February 13, 1998 to December 31, 2001.


	Since Inception	One Year




Average Annual Total Return through December 31, 2001




CORE Small Cap Equity Fund (commenced February 13, 1998)	3.29%	4.53%

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM SMALL CAP EQUITY FUND

Statement of Investments

December 31, 2001



Shares		Description	Value
Common Stocks – 97.7%

Airlines – 0.5%
	5,200	Atlantic Coast Airlines Holdings, Inc.*	$	121,108
	6,950	Frontier Airlines, Inc.*		118,150
	6,100	Mesa Air Group, Inc.*		45,872

				285,130

Alcohol – 0.1%
	1,600	The Robert Mondavi Corp.*		60,800

Apparel – 0.1%
	4,000	Skechers U.S.A., Inc.*		58,480

Banks – 6.5%
	2,200	Capital City Bank Group, Inc.		53,306
	6,800	Commerce Bancorp, Inc.		267,512
	12,700	Commercial Federal Corp.		298,450
	2,300	Compass Bancshares, Inc.		65,090
	4,300	Corus Bankshares, Inc.		195,220
	4,200	Cullen/Frost Bankers, Inc.		129,696
	2,400	First Citizens BancShares, Inc.		234,600
	4,030	Fulton Financial Corp.		87,975
	2,300	GBC Bancorp		67,850
	4,900	Greater Bay Bancorp		140,042
	2,300	Hancock Holding Co.		98,992
	3,000	Independence Community Bank Corp.		68,280
	4,300	Investors Financial Services Corp.		284,703
	1,800	MidAmerica Bancorp		59,580
	4,600	OceanFirst Financial Corp.		111,136
	3,800	Pacific Capital Bancorp		105,602
	6,300	Pacific Century Financial Corp.		163,107
	2,200	Prosperity Bancshares, Inc.		59,378
	3,500	Provident Financial Group, Inc.		91,980
	7,600	Santander BanCorp		147,516
	1,900	Silicon Valley Bancshares*		50,787
	6,600	Sterling Bancshares, Inc.		82,632
	7,700	Trustmark Corp.		186,571
	3,570	UMB Financial Corp.		142,800
	5,800	Westamerica Bancorp		229,506
	3,900	Wintrust Financial Corp.		119,223

				3,541,534

Chemicals – 2.5%
	4,200	Airgas, Inc.*		63,504
	4,900	Albemarle Corp.		117,600
	6,700	Arch Chemicals, Inc.		155,440
	3,000	Ashland, Inc.		138,240
	5,500	Brady Corp.		201,300
	1,800	H.B. Fuller Co.		51,786
	6,000	Millennium Chemicals, Inc.		75,600
	1,800	NCH Corp.		93,870
	2,200	Rogers Corp.*		66,660
	5,800	The Lubrizol Corp.		203,522
	3,800	The Scotts Co.*		180,880

				1,348,402

Clothing – 1.1%
	1,500	Chicos FAS, Inc.*		59,550
	2,400	Christopher & Banks Corp.*		82,200
	900	Payless ShoeSource, Inc.*		50,535
	5,700	Stein Mart, Inc.*		47,652
	2,500	The Childrens Place Retail Stores, Inc.*		67,875
	17,200	The Finish Line, Inc.*		262,988
	2,300	The Wet Seal, Inc.*		54,165

				624,965

Computer Hardware – 3.5%
	18,600	3Com Corp.*		118,668
	3,700	Celeritek, Inc.*		49,543
	4,000	Checkpoint Systems, Inc.*		53,600
	6,400	Coinstar, Inc.*		160,000
	3,100	Computer Network Technology Corp.*		55,149
	11,700	Daisytek International Corp.		154,089
	5,100	Echelon Corp.*		72,216
	4,000	Global Imaging Systems, Inc.*		59,720
	11,300	IKON Office Solutions, Inc.		132,097
	7,600	Imation Corp.*		164,008
	6,000	InFocus Corp.*		132,120
	1,050	Kronos, Inc.*		50,799
	3,900	Mercury Computer Systems, Inc.*		152,529
	2,900	RadiSys Corp.*		57,014
	3,800	SBS Technologies, Inc.*		55,366
	3,700	Secure Computing Corp.*		76,035
	3,700	Storage Technology Corp.*		76,479
	3,900	Tech Data Corp.*		168,792
	2,500	Zebra Technologies Corp.*		138,775

				1,926,999

Computer Software – 4.7%
	19,600	Acclaim Entertainment, Inc.*		103,880
	8,150	Activision, Inc.*		211,981
	5,600	Actuate Corp.*		29,512
	3,200	Avant! Corp.*		65,568
	4,900	Avid Technology, Inc.*		59,535
	9,700	Borland Software Corp.*		151,902
	5,800	CACI International, Inc.*		229,013
	2,900	Catapult Communications Corp.*		75,574
	6,600	Documentum, Inc.*		143,352
	5,400	Entrust, Inc.*		55,026
	4,850	EPIQ Systems, Inc.*		93,848
	4,500	FileNET Corp.*		91,305
	4,000	HNC Software, Inc.*		82,400
	4,100	Intergraph Corp.*		56,334
	5,800	J.D. Edwards & Co.*		95,410
	3,400	JDA Software Group, Inc.*		75,990
	2,600	Manhattan Associates, Inc.*		75,790
	3,400	Midway Games, Inc.*		51,034
	5,900	MSC.Software Corp.*		92,040
	32,800	Novell, Inc.*		150,552
	3,300	Pharmacopeia, Inc.*		45,837
	4,100	Radiant Systems, Inc.*		47,150
	1,700	Renaissance Learning, Inc.*		51,799
	3,600	SeaChange International, Inc.*		122,832
	4,100	SERENA Software, Inc.*		89,134

22 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM SMALL CAP EQUITY FUND



Shares		Description	Value
Common Stocks – (continued)

Computer Software – (continued)
	4,400	The Titan Corp.*	$	109,780
	2,300	Websense, Inc.*		73,761

				2,530,339

Construction – 2.0%
	2,600	Beazer Homes USA, Inc.*		190,242
	6,500	Champion Enterprises, Inc.*		80,015
	6,100	EMCOR Group, Inc.*		276,940
	8,100	Fleetwood Enterprises, Inc.		91,773
	14,550	Griffon Corp.*		218,250
	2,600	Insituform Technologies, Inc.*		66,508
	600	NVR, Inc.*		122,400
	7,600	ResortQuest International, Inc.*		36,176

				1,082,304

Consumer Durables – 1.2%
	3,800	Kimball International, Inc. Class B		57,570
	1,600	Mohawk Industries, Inc.*		87,808
	2,900	The Sherwin-Williams Co.		79,750
	8,400	The Toro Co.		378,000
	3,000	Universal Electronics, Inc.*		51,630

				654,758

Defense/Aerospace – 0.6%
	5,900	AAR Corp.		53,159
	1,000	Curtiss-Wright Corp.		47,750
	5,300	Kaman Corp.		82,680
	4,700	Moog, Inc.*		102,460
	3,300	Teledyne Technologies, Inc.*		53,757

				339,806

Department Stores – 0.4%
	7,800	Dillard’s, Inc.		124,800
	11,700	Shopko Stores, Inc.*		111,150

				235,950

Drugs – 7.1%
	4,600	3 Dimensional Pharmaceutical, Inc.*		39,054
	2,800	Affymetrix, Inc.*		105,700
	2,200	Alexion Pharmaceuticals, Inc.*		53,768
	3,178	AmerisourceBergen Corp.		201,962
	3,100	Cephalon, Inc.*		234,313
	3,500	Charles River Laboratories International, Inc.*		117,180
	3,400	Corixa Corp.*		51,238
	8,500	Diagnostic Products Corp.		373,575
	1,800	Digene Corp.*		53,100
	3,500	Diversa Corp.*		49,525
	4,800	First Horizon Pharmaceutical Corp.*		141,072
	2,600	Gene Logic, Inc.*		48,984
	7,400	Genome Therapeutics Corp.*		50,394
	5,500	Harvard Bioscience, Inc.*		54,670
	3,700	Herbalife International, Inc.		52,614
	3,400	Hyseq, Inc.*		26,248
	4,800	IDEXX Laboratories, Inc.*		136,848
	5,600	Immunomedics, Inc.*		113,456
	800	Invitrogen Corp.*		49,544
	2,600	Kos Pharmaceuticals, Inc.*		89,960
	2,100	Martek Biosciences Corp.*		45,675
	11,100	Medarex, Inc.*		199,356
	1,200	Medicis Pharmaceutical Corp.*		77,508
	2,900	MGI Pharma, Inc.*		44,312
	5,700	NBTY, Inc.*		66,690
	4,200	Onyx Pharmaceuticals, Inc.*		21,504
	20,600	Perrigo Co.*		243,492
	6,900	Pharmaceutical Resources, Inc.*		233,220
	7,172	Priority Healthcare Corp. Class B*		252,383
	2,500	Progenics Pharmaceuticals, Inc.*		46,175
	4,100	Scios, Inc.*		97,457
	4,100	Serologicals Corp.*		88,150
	9,200	SICOR, Inc.*		144,256
	5,200	Syncor International Corp.*		148,928
	2,200	Tularik, Inc.*		52,844
	3,500	Vical, Inc.*		42,840

				3,847,995

Electrical Equipment – 5.6%
	3,300	3D Systems Corp.*		47,025
	2,100	ADTRAN, Inc.*		53,592
	6,100	Allen Telecom, Inc.*		51,850
	7,800	Anixter International, Inc.*		226,278
	3,100	BEI Technologies, Inc.		54,064
	5,200	Benchmark Electronics, Inc.*		98,592
	8,700	Cable Design Technologies Corp.*		119,016
	700	Cabot Microelectronics Corp.*		55,475
	3,400	CommScope, Inc.*		72,318
	6,400	DMC Stratex Networks, Inc.*		49,792
	3,200	DSP Group, Inc.*		74,432
	1,700	FEI Co.*		53,567
	6,200	Fisher Scientific International, Inc.*		181,040
	2,500	FLIR Systems, Inc.*		94,800
	6,700	General Cable Corp.		87,770
	3,900	Helix Technology Corp.		87,945
	4,400	II-VI, Inc.*		75,812
	6,400	Input/Output, Inc.*		52,544
	5,400	InterDigital Communications Corp.*		52,380
	4,900	Interface, Inc.		27,489
	4,200	Itron, Inc.*		127,260
	9,200	MRV Communications, Inc.*		39,008
	1,900	Nanometrics, Inc.*		36,860
	8,400	Pemstar, Inc.*		100,800
	14,100	Pioneer-Standard Electronics, Inc.		179,070
	2,600	Planar Systems, Inc.*		54,860
	4,300	Plantronics, Inc.*		110,252
	5,100	Plexus Corp.*		135,456
	5,400	SymmetriCom, Inc.*		41,094
	3,600	Tekelec*		65,196
	12,500	Terayon Communication Systems, Inc.*		103,387
	5,600	Trimble Navigation Ltd.*		90,776
	10,600	Turnstone Systems, Inc.*		42,082
	2,800	Ulticom, Inc.*		28,168
	2,800	Ultratech Stepper, Inc.*		46,256

The accompanying notes are an integral part of these financial statements. 23

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM SMALL CAP EQUITY FUND

Statement of Investments (continued)

December 31, 2001



Shares		Description	Value
Common Stocks – (continued)

Electrical Equipment – (continued)
	4,500	Varian, Inc.*	$	145,980
	7,683	Vialta, Inc.*		9,527
	2,000	Vicor Corp.*		32,400
	3,700	Zygo Corp.*		58,830

				3,063,043

Electrical Utilities – 0.5%
	6,400	Avista Corp.		84,864
	7,300	Public Service Co. of New Mexico		204,035

				288,899

Energy Resources – 0.8%
	8,200	Chesapeake Energy Corp.*		54,202
	1,600	Evergreen Resources, Inc.*		61,776
	7,600	KCS Energy, Inc.*		23,712
	5,600	Quicksilver Resources, Inc.*		106,680
	2,200	Spinnaker Exploration Co.*		90,552
	2,500	Western Gas Resources, Inc.		80,800

				417,722

Entertainment – 0.3%
	7,000	Handleman Co.*		103,950
	4,200	World Wrestling Federation Entertainment, Inc.*		55,230

				159,180

Environmental Services – 0.5%
	2,800	CARBO Ceramics, Inc.		109,648
	9,000	Casella Waste Systems, Inc.*		133,290
	8,700	Covanta Energy Corp.*		39,324

				282,262

Equity REIT – 6.2%
	1,600	Alexandria Real Estate Equities, Inc.		65,760
	13,300	Amli Residential Properties Trust		335,426
	3,700	AvalonBay Communities, Inc.		175,047
	1,300	Camden Property Trust		47,710
	8,600	CBL & Associates Properties, Inc.		270,900
	6,700	EastGroup Properties, Inc.		154,569
	13,500	FelCor Lodging Trust, Inc.		225,585
	6,000	First Industrial Realty Trust, Inc.		186,600
	3,700	General Growth Properties, Inc.		143,560
	8,100	Healthcare Realty Trust, Inc.		226,800
	9,300	Highwoods Properties, Inc.		241,335
	2,200	Hospitality Properties Trust		64,900
	2,900	iStar Financial, Inc.		72,355
	4,900	Kilroy Realty Corp.		128,723
	14,500	MeriStar Hospitality Corp.		205,900
	6,300	Mid-America Apartment Communities, Inc.		165,690
	8,200	Prime Group Realty Trust		75,686
	7,200	PS Business Parks, Inc.		226,800
	4,000	Public Storage, Inc.		133,600
	4,800	Regency Centers Corp.		133,200
	3,400	Shurgard Storage Centers, Inc.		108,800

				3,388,946

Financial Services – 1.0%
	4,900	Advanta Corp.		48,706
	2,100	Brown & Brown		57,330
	3,200	Credit Acceptance Corp.*		28,480
	3,800	IndyMac Bancorp, Inc.*		88,844
	12,000	Insignia Financial Group, Inc.*		129,600
	4,100	National Processing, Inc.*		133,250
	2,257	SWS Group, Inc.		57,441

				543,651

Food & Beverage – 2.1%
	7,500	Corn Products International, Inc.		264,375
	2,800	Dole Food Co., Inc.		75,124
	14,300	Fleming Cos., Inc.		264,550
	4,400	Interstate Bakeries Corp.		106,392
	3,800	Performance Food Group Co.*		133,646
	6,200	Pilgrim’s Pride Corp.		84,010
	4,300	Smithfield Foods, Inc.*		94,772
	5,800	United Natural Foods, Inc.*		145,000

				1,167,869

Forest – 1.6%
	4,200	Chesapeake Corp.		116,802
	1,800	Greif Bros. Corp.		59,310
	4,400	Ivex Packaging Corp.*		83,600
	4,600	Louisiana-Pacific Corp.		38,824
	4,200	Pope & Talbot, Inc.		59,850
	4,900	Schweitzer-Mauduit International, Inc.		116,375
	8,500	United Stationers, Inc.*		286,025
	4,400	Universal Forest Products, Inc.		92,092

				852,878

Gas Utilities – 1.6%
	3,500	Cascade Natural Gas Corp.		77,175
	2,900	Northwest Natural Gas Co.		73,950
	17,900	Oneok, Inc.		319,336
	3,700	South Jersey Industries, Inc.		120,620
	6,400	UGI Corp.		193,280
	2,700	WGL Holdings, Inc.		78,489

				862,850

Grocery – 1.1%
	24,900	The Great Atlantic & Pacific Tea Co., Inc.		592,122

Heavy Electrical – 1.2%
	8,100	A.O. Smith Corp.		157,950
	6,200	Andrew Corp.*		135,718
	4,800	Belden, Inc.		113,040
	3,300	LSI Industries, Inc.		57,420
	2,900	Thomas & Betts Corp.		61,335
	2,300	Woodward Governor Co.		133,975

				659,438

Heavy Machinery – 1.3%
	7,000	AGCO Corp.		110,460
	13,400	JLG Industries, Inc.		142,710
	2,800	Lindsay Manufacturing Co.		54,180

24 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM SMALL CAP EQUITY FUND



Shares		Description	Value
Common Stocks – (continued)

Heavy Machinery – (continued)
	2,600	NACCO Industries, Inc.	$	147,654
	6,600	Terex Corp.*		115,764
	4,300	Trinity Industries, Inc.		116,831

				687,599

Home Products – 0.9%
	4,300	Alberto-Culver Co. Class B		192,382
	6,700	Church & Dwight Co., Inc.		178,421
	8,200	The Dial Corp.		140,630

				511,433

Hotels – 0.7%
	5,400	Ameristar Casinos, Inc.*		135,270
	1,600	Argosy Gaming Co.*		52,032
	9,500	Aztar Corp.*		173,850

				361,152

Industrial Parts – 2.7%
	7,600	Applied Industrial Technologies, Inc.		141,740
	4,100	CompX International, Inc.		53,177
	5,100	ESCO Technologies, Inc.*		175,899
	3,700	Flowserve Corp.*		98,457
	10,000	Hughes Supply, Inc.		308,700
	2,300	Kennametal, Inc.		92,621
	11,500	Lennox International, Inc.		111,550
	2,700	Nordson Corp.		71,307
	2,900	Nortek, Inc.*		80,910
	1,600	SPS Technologies, Inc.*		55,872
	2,600	Tecumseh Products Co.		131,638
	6,200	The Timken Co.		100,316
	2,600	Watts Industries, Inc.		39,000

				1,461,187

Industrial Services – 1.8%
	4,900	Administaff, Inc.*		134,309
	1,500	Copart, Inc.*		54,555
	8,200	Dollar Thrifty Automotive Group, Inc.*		127,100
	6,100	Gentiva Health Services, Inc.*		133,895
	3,900	ITT Educational Services, Inc.*		143,793
	1,900	Learning Tree International, Inc.*		53,010
	9,300	Rent-Way, Inc.*		55,707
	5,500	Ryder System, Inc.		121,825
	6,700	Spherion Corp.*		65,392
	1,900	SRI/Surgical Express, Inc.*		30,400
	2,500	United Rentals, Inc.*		56,750

				976,736

Information Services – 3.9%
	4,300	ADVO, Inc.*		184,900
	500	Affiliated Computer Services, Inc.*		53,065
	5,600	Allscripts Heathcare Solutions, Inc.*		18,144
	2,050	BARRA, Inc.*		96,534
	2,300	Cognizant Technology Solutions Corp.*		94,254
	2,400	CoStar Group, Inc.*		57,624
	3,100	Daktronics, Inc.*		26,195
	6,700	DiamondCluster International, Inc.*		87,770
	3,800	Exult, Inc.*		60,990
	1,200	F.Y.I., Inc.*		40,200
	1,500	FactSet Research Systems, Inc.		52,425
	1,300	Fair Isaac & Co., Inc.		81,926
	3,580	Global Payments, Inc.		123,152
	7,500	Interactive Data Corp.		106,050
	4,000	Jack Henry & Associates, Inc.		87,360
	4,700	Lexicon Genetics, Inc.*		54,238
	2,900	Multex.com, Inc.*		13,050
	4,300	NDCHealth Corp.		148,565
	5,500	PEC Solutions, Inc.*		206,855
	6,550	Pegasus Systems, Inc.*		93,010
	1,800	R.H. Donnelley Corp.*		52,290
	4,100	SBA Communications Corp.*		53,382
	2,500	StarTek, Inc.*		47,375
	2,600	Symyx Technologies, Inc.*		55,224
	7,600	TeleTech Holdings, Inc.*		108,908
	2,125	Tetra Tech, Inc.*		42,309
	1,900	Travelocity.com, Inc.*		54,549

				2,100,344

Internet – 2.6%
	13,300	Akamai Technologies, Inc.*		79,002
	14,500	Art Technology Group, Inc.*		50,460
	7,500	Click Commerce, Inc.*		23,700
	20,600	Commerce One, Inc.*		73,542
	5,000	HotJobs.com, Ltd.*		51,950
	6,900	Inet Technologies, Inc.*		72,933
	4,600	Investment Technology Group, Inc.*		179,722
	12,000	Macromedia, Inc.*		213,600
	6,300	Nuance Communications, Inc.*		57,330
	5,200	Overture Services, Inc.*		184,236
	9,500	Priceline.com, Inc.*		55,290
	5,200	S1 Corp.*		84,136
	4,100	SonicWall, Inc.*		79,704
	2,500	Stellent, Inc.*		73,900
	3,900	Vastera, Inc.*		64,779
	2,900	Verity, Inc.*		58,725
	1,600	WebEx Communications, Inc.*		39,760

				1,442,769

Leisure – 1.7%
	4,200	Action Performance Cos., Inc.*		128,562
	2,000	Churchill Downs, Inc.		73,940
	3,400	Concord Camera Corp.*		26,928
	6,700	Dover Downs Entertainment, Inc.		102,510
	4,900	JAKKS Pacific, Inc.*		92,855
	6,600	Polaris Industries, Inc.		381,150
	4,350	SCP Pool Corp.*		119,408

				925,353

Life Insurance – 0.6%
	5,100	AmerUs Group Co.		182,784
	1,300	National Western Life Insurance Co.*		144,560

				327,344

The accompanying notes are an integral part of these financial statements. 25

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM SMALL CAP EQUITY FUND

Statement of Investments (continued)

December 31, 2001



Shares		Description	Value
Common Stocks – (continued)

Media – 1.2%
	5,700	Arbitron, Inc.*	$	194,655
	2,700	Media General, Inc.		134,541
	11,600	Sinclair Broadcast Group, Inc.*		109,736
	3,400	The Liberty Corp.		139,910
	2,200	Westwood One, Inc.*		66,110

				644,952

Medical Products – 3.0%
	1,300	Analogic Corp.		50,063
	3,300	Arrow International, Inc.		131,802
	2,300	Closure Medical Corp.*		53,728
	6,700	Henry Schein, Inc.*		248,101
	1,300	Hillenbrand Industries, Inc.		71,851
	1,900	INAMED Corp.*		57,133
	4,600	Intuitive Surgical, Inc.*		46,138
	8,500	Magellan Health Services, Inc.*		53,975
	4,600	Ocular Sciences, Inc.*		107,180
	11,600	Owens & Minor, Inc.		214,600
	2,400	PolyMedica Corp.*		39,840
	16,200	PSS World Medical, Inc.*		132,192
	2,200	Respironics, Inc.*		76,208
	2,900	SangStat Medical Corp.*		56,956
	7,600	STERIS Corp.*		138,852
	1,300	Varian Medical Systems, Inc.*		92,638
	2,100	Ventana Medical Systems, Inc.*		47,502

				1,618,759

Medical Providers – 1.6%
	2,100	Aetna, Inc.		69,279
	11,200	Beverly Enterprises, Inc.*		96,320
	7,000	Caremark Rx, Inc.*		114,170
	7,300	Coventry Health Care, Inc.*		145,635
	2,300	Enzo Biochem, Inc.*		54,050
	10,700	Humana, Inc.*		126,153
	520	Inverness Medical Innovations, Inc.*		9,386
	2,400	Mid Atlantic Medical Services, Inc.*		54,480
	7,100	PacifiCare Health Systems, Inc.*		113,600
	13,500	Service Corp. International*		67,365

				850,438

Mining – 2.4%
	8,200	AK Steel Holding Corp.		93,316
	4,400	Allegheny Technologies, Inc.		73,700
	2,900	Ball Corp.		205,030
	1,700	Harsco Corp.		58,310
	8,100	Massey Energy Co.		167,913
	3,300	Mueller Industries, Inc.*		109,725
	14,000	Owens-Illinois, Inc.*		139,860
	7,800	Quanex Corp.		220,740
	2,000	Reliance Steel & Aluminum Corp.		52,500
	9,200	RTI International Metals, Inc.*		91,540
	9,800	USEC, Inc.		70,168

				1,282,802

Motor Vehicle – 1.8%
	10,000	Circuit City Stores, Inc. – CarMax Group*		227,400
	3,100	Cummins Engine Co., Inc.		119,474
	7,004	Dura Automotive Systems, Inc.*		77,044
	2,700	Oshkosh Truck Corp.		131,625
	4,200	Stewart & Stevenson Services, Inc.		79,002
	4,800	Thor Industries, Inc.		177,840
	8,900	Tower Automotive, Inc.*		80,367
	2,700	Winnebago Industries, Inc.		99,738

				992,490

Oil Refining – 0.9%
	7,200	NorthWestern Corp.		151,560
	2,000	Plains Resources, Inc.*		49,220
	20,900	Tesoro Petroleum Corp.*		273,999

				474,779

Oil Services – 1.3%
	3,300	Atwood Oceanics, Inc.*		115,005
	2,100	Cal Dive International, Inc.*		51,828
	3,100	Lufkin Industries, Inc.		83,080
	4,000	Oceaneering International, Inc.*		88,480
	6,000	Parker Drilling Co.*		22,140
	5,400	Pride International, Inc.*		81,540
	4,000	Seitel, Inc.*		54,400
	5,600	Varco International, Inc.*		83,888
	7,100	Veritas DGC, Inc.*		131,350

				711,711

Property Insurance – 1.7%
	2,600	Allmerica Financial Corp.		115,830
	8,400	First American Corp.		157,416
	4,600	Harleysville Group, Inc.		109,894
	6,200	LandAmerica Financial Group, Inc.		177,940
	1,400	PMA Capital Corp.		27,020
	4,200	The Commerce Group, Inc.		158,298
	3,500	The Midland Co.		153,300

				899,698

Publishing – 1.3%
	3,600	Banta Corp.		106,272
	4,900	Getty Images, Inc.*		112,602
	4,400	Martha Stewart Living Omnimedia, Inc.*		72,380
	3,600	Paxar Corp.*		51,120
	3,600	Pulitzer, Inc.		183,600
	2,100	The McClatchy Co.		98,700
	5,200	The Standard Register Co.		96,356

				721,030

Railroads – 0.1%
	3,900	Wabtec Corp.		47,970

Restaurants – 1.6%
	2,500	AFC Enterprises, Inc.*		70,975
	4,700	CBRL Group, Inc.		138,368
	10,800	Landry’s Restaurants, Inc.		201,420

26 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST CORE^SM SMALL CAP EQUITY FUND



Shares		Description	Value
Common Stocks – (continued)

Restaurants – (continued)
	10,900	Lone Star Steakhouse & Saloon, Inc.	$	161,647
	2,200	Panera Bread Co.*		114,488
	8,200	Ruby Tuesday, Inc.		169,166

				856,064

Securities/Asset Management – 1.3%
	5,310	Acacia Research Corp.		58,782
	5,600	BlackRock, Inc.*		233,520
	1,300	Jefferies Group, Inc.		55,003
	6,650	The John Nuveen Co.		355,642

				702,947

Semiconductors – 2.4%
	4,400	Alliance Semiconductor Corp.*		53,152
	3,700	ANADIGICS, Inc.*		56,425
	2,300	Arrow Electronics, Inc.*		68,770
	4,350	Avnet, Inc.		110,794
	2,900	AVX Corp.		68,411
	2,700	Cohu, Inc.		53,325
	10,400	ESS Technology, Inc.*		221,104
	3,200	Exar Corp.*		66,720
	2,100	Fairchild Semiconductor Corp.*		59,220
	3,000	hi/fn, inc.*		43,410
	2,600	Integrated Circuit Systems, Inc.*		58,734
	7,800	JNI Corp.*		64,818
	3,800	Kopin Corp.*		53,200
	2,600	Microsemi Corp.*		77,220
	6,400	Rainbow Technologies, Inc.*		47,360
	3,400	Therma-Wave, Inc.*		50,728
	4,700	TriQuint Semiconductor, Inc.*		57,622
	4,500	Xicor, Inc.*		49,950
	1,600	Zoran Corp.*		52,224

				1,313,187

Specialty Retail – 3.2%
	1,300	AutoZone, Inc.*		93,340
	7,000	Brown Shoe Co., Inc.		113,680
	1,700	Fred’s, Inc.		69,632
	4,600	Group 1 Automotive, Inc.*		131,146
	3,800	Guitar Center, Inc.*		51,832
	7,100	Hollywood Entertainment Corp.*		101,459
	2,300	Insight Communications, Inc.*		55,568
	2,300	Longs Drug Stores Corp.		53,774
	3,300	Maxygen, Inc.*		57,981
	6,850	Movie Gallery, Inc.*		166,866
	3,200	PC Connection, Inc.*		47,456
	9,900	PETsMART, Inc.*		97,416
	4,100	Pier 1 Imports, Inc.		71,094
	1,800	Rent-A-Center, Inc.*		60,426
	10,600	Sonic Automotive, Inc.*		248,464
	7,600	Spartan Stores, Inc.*		90,896
	4,500	The Pep Boys-Manny, Moe & Jack		77,175
	4,600	United Auto Group, Inc.*		118,726
	2,700	ValueVision International, Inc.*		52,893

				1,759,824

Telephone – 1.6%
	7,700	Allegiance Telecom, Inc.*		63,833
	2,700	Commonwealth Telephone Enterprises, Inc.*		122,850
	3,800	Dycom Industries, Inc.*		63,498
	13,000	IDT Corp.*		253,630
	6,500	Metro One Telecommunications, Inc.*		196,625
	4,200	NTELOS, Inc.*		65,058
	11,100	RCN Corp.*		32,523
	10,600	The Montana Power Co.*		60,950
	5,400	World Access, Inc.*		5

				858,972

Thrifts – 0.6%
	6,400	BankUnited Financial Corp.*		95,040
	3,800	Capitol Federal Financial		79,192
	2,800	Corrections Corp. of America*		51,968
	7,000	Staten Island Bancorp, Inc.		114,170

				340,370

Tobacco – 0.4%
	1,400	Universal Corp.		50,974
	4,400	Vector Group Ltd.		144,540

				195,514

Truck Freight – 1.5%
	20,800	Airborne, Inc.		308,464
	6,500	J.B. Hunt Transport Services, Inc.*		150,800
	5,900	Offshore Logistics, Inc.*		104,784
	2,300	Overseas Shipholding Group		51,750
	8,100	Yellow Corp.*		203,310

				819,108

Wireless – 0.8%
	4,600	Alamosa Holdings, Inc.*		54,878
	10,200	Audiovox Corp.*		76,092
	4,400	Boston Communications Group, Inc.*		49,940
	3,800	TeleCorp PCS, Inc.*		47,386
	10,100	US Unwired, Inc.*		102,818
	2,800	UTStarcom, Inc.*		79,800

				410,914

TOTAL COMMON STOCKS
(Cost $49,302,486)			$	53,111,768

TOTAL INVESTMENTS
(Cost $49,302,486)			$	53,111,768


*		Non-income producing security.

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. 27

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Shareholder Letter

Dear Shareholders:

We are pleased to report on the performance of the Goldman Sachs Variable Insurance Trust — Capital Growth Fund. This annual report covers the one-year period that ended December 31, 2001.

Market Review

The U.S. equity markets experienced a difficult 2001, as the majority of the major indexes finished in negative territory for the 12-month period. Throughout the year, investors dealt with the abrupt slowdown in the U.S. economy’s growth rate, and the resulting sluggish business environment. At the beginning of 2001, the market’s weakness was, for the most part, concentrated in the Technology sector. The drivers of the precipitous drop in many of this sector’s issues were weakening end-market demand, significant inventory build-up and downward earnings revisions.

As the economy’s growth slowed even further, more industries began to report a slowdown in business, and investors sold stocks across the board. In an effort to jolt the sluggish economy, the Federal Reserve Board (the “Fed”) lowered the fed funds rate on eleven separate occasions in 2001. Despite the rationale that purports that lower interest rates spur investment, and in turn boost stock prices, the market did not soar on the heels of the looser monetary policy. This was mainly due to the fact that, regardless of the interest rate level, there was simply not enough demand for companies’ products and services to warrant new investments. In addition, the events of September 11 further shook the markets. However, there exists the expectation that we will see the positive effects of the Fed’s actions in the coming year as the business cycle begins to turn upward.

Performance Review

Over the one-year period that ended December 31, 2001, the Fund generated a -14.46% cumulative total return. Over the same time period, the Fund’s benchmark, the Standard & Poor’s 500 Index (with dividends reinvested) generated a -11.88% cumulative total return.

As these returns indicate, last year was a challenging period in the financial markets, especially for large cap growth managers. The Fund’s underperformance relative to the benchmark was largely due to weak performance by several of our Utilities and Healthcare companies. On the other hand, the Fund was aided by the returns of our Producer Goods and Services holdings.

In terms of specific stocks, AES Corp. was a disappointment. Midway through the year, AES announced that it would fall short of earnings expectations because of the depreciated Brazilian currency and electricity rationing in that country, combined with sustained and continuing decline in UK electricity prices and a shortfall in the new business area. To make matters worse, the company could not provide investors with a growth rate going forward. As a result of management’s uncertainty, we sold our entire position.

Towards the end of the year, both Merck & Co., Inc. (1.1% of the portfolio on December 31, 2001) and Bristol-Myers Squibb Co. (2.1%) downwardly revised their earnings outlook for 2002. This was primarily due to impending competition from generic drugs. Although Bristol Myers will begin to face generic competition for its diabetes drug, Glucophage, it has

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

a very compelling late stage pipeline. We believe that several key acquisitions, coupled with a deep pipeline, should provide Bristol-Myers with the product line it needs to achieve strong earnings growth going forward.

First Data Corp. (1.2%) was a positive contributor to the Fund this year. The company, through its subsidiary Western Union, provides personal and business financial services to consumers and companies throughout the world. The company’s growth rate was strong and consistent throughout the year, a feat that was certainly not achieved by many U.S. businesses in 2001. First Data was able to grow its business because of its concerted effort to cut expenditures, successful global expansion, and it’s ability to take advantage of the shift from paper to electronic payments.

Investment Objective

The Fund seeks long-term capital growth, primarily through investments in a diversified portfolio of companies strategically poised for long-term growth.

Portfolio Composition

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2001*


Company	Business	% Portfolio

Microsoft Corp.	Computer Software		4.6	%
General Electric Co.	Financial Services		4.1
SPDR Trust Series 1	Other		3.7
Pfizer, Inc.	Drugs		3.3
Wal-Mart Stores, Inc.	Department Stores		3.0
Exxon Mobil Corp.	Energy Resources		3.0
AOL Time Warner, Inc.	Entertainment		2.6
Citigroup, Inc.	Banks		2.3
Intel Corp.	Semiconductors		2.1
Viacom, Inc. Class B	Entertainment		2.1

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Shareholder Letter (continued)

Outlook

The U.S. equity markets rose steadily throughout the fourth quarter of 2001. Based on the current sluggish economic environment, we are assuming that the economy will continue to experience flat growth for the next few quarters. Nevertheless, we are hopeful that 2002 will be a period of stronger growth for U.S. companies, as well as businesses around the world. This is not a forecast, but rather an assumption so that we can test the strength of our companies under the upcoming economic environment. Going forward, we will continue to focus our efforts on the strength and sustainability of our companies’ financial statements — a practice that we have always employed.

We thank you for your investment and look forward to your continued confidence.

Goldman Sachs Growth Management Team

January 11, 2002

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Performance Summary

December 31, 2001

The following graph shows the value as of December 31, 2001, of a $10,000 investment made on April 30, 1998 (commencement of operations). For comparative purposes, the performance of the Fund’s benchmark (the Standard and Poor’s 500 Index (“S&P 500 Index”)) is shown. This performance data represents past performance and should not be considered indicative of future performance which will fluctuate 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. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

Capital Growth Fund’s Lifetime Performance

Growth of a $10,000 investment, Distributions Reinvested from April 30, 1998 to December 31, 2001.


	Since Inception	One Year




Average Annual Total Return through December 31, 2001




Capital Growth Fund (commenced April 30, 1998)	3.50%	-14.46%

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Statement of Investments

December 31, 2001



Shares		Description	Value
Common Stocks – 98.5%

Banks – 5.5%
	2,400	Bank of America Corp.	$	151,080
	7,433	Citigroup, Inc.		375,218
	4,100	State Street Corp.		214,225
	1,100	The Bank of New York Co., Inc.		44,880
	2,600	Wells Fargo & Co.		112,970

				898,373

Chemicals – 1.4%
	2,467	E.I. du Pont de Nemours & Co.		104,872
	500	Minnesota Mining & Manufacturing Co.		59,105
	1,700	The Dow Chemical Co.		57,426

				221,403

Computer Hardware – 3.1%
	13,100	Cisco Systems, Inc.*		237,241
	3,700	Dell Computer Corp.*		100,566
	7,300	EMC Corp.		98,112
	5,400	Sun Microsystems, Inc.*		66,420

				502,339

Computer Software – 7.8%
	2,400	International Business Machines Corp.		290,304
	2,500	Intuit, Inc.*		106,900
	11,300	Microsoft Corp.*		748,851
	9,400	Oracle Corp.*		129,814

				1,275,869

Defense/Aerospace – 0.3%
	1,000	Honeywell International, Inc.		33,820
	300	United Technologies Corp.		19,389

				53,209

Department Stores – 3.0%
	8,500	Wal-Mart Stores, Inc.		489,175

Drugs – 9.5%
	2,600	American Home Products Corp.		159,536
	1,700	Amgen, Inc.*		95,948
	6,600	Bristol-Myers Squibb Co.		336,600
	1,700	Eli Lilly & Co.		133,518
	3,000	Merck & Co., Inc.		176,400
	13,375	Pfizer, Inc.		532,994
	3,200	Schering-Plough Corp.		114,592

				1,549,588

Electrical Utilities – 0.5%
	900	Duke Energy Corp.		35,334
	2,718	Mirant Corp.*		43,542

				78,876

Energy Resources – 5.3%
	1,654	ChevronTexaco Corp.		148,215
	12,284	Exxon Mobil Corp.		482,761
	4,500	Royal Dutch Petroleum Co. ADR		220,590
	300	Unocal Corp.		10,821

				862,387

Entertainment – 5.0%
	12,950	AOL Time Warner, Inc.*		415,695
	2,500	Metro-Goldwyn-Mayer, Inc.*		54,750
	7,672	Viacom, Inc. Class B*		338,719

				809,164

Environmental Services – 0.1%
	700	Waste Management, Inc.		22,337

Financial Services – 9.5%
	4,700	Federal Home Loan Mortgage Corp.		307,380
	4,200	Federal National Mortgage Assoc.		333,900
	16,500	General Electric Co.		661,320
	6,900	MBNA Corp.		242,880

				1,545,480

Food & Beverage – 3.9%
	6,490	PepsiCo, Inc.		315,998
	3,500	The Coca-Cola Co.		165,025
	2,900	Wm. Wrigley Jr. Co.		148,973

				629,996

Forest – 0.5%
	800	International Paper Co.		32,280
	800	Weyerhaeuser Co.		43,264

				75,544

Heavy Electrical – 0.1%
	200	Emerson Electric Co.		11,420

Home Products – 3.3%
	1,600	Avon Products, Inc.		74,400
	3,700	Colgate-Palmolive Co.		213,675
	3,600	Energizer Holdings, Inc.*		68,580
	300	Kimberly-Clark Corp.		17,940
	800	The Gillette Co.		26,720
	1,700	The Procter & Gamble Co.		134,521

				535,836

Hotels – 2.7%
	5,200	Harrah’s Entertainment, Inc.*		192,452
	3,300	Marriott International, Inc.		134,145
	3,600	Starwood Hotels & Resorts Worldwide, Inc.		107,460

				434,057

Industrial Parts – 1.5%
	4,100	Tyco International Ltd.		241,490

Information Services – 1.6%
	1,000	Automatic Data Processing, Inc.		58,900
	2,500	First Data Corp.		196,125

				255,025

32 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND



Shares		Description	Value
Common Stocks – (continued)

Internet – 2.0%
	450	CheckFree Corp.*	$	8,100
	2,900	Sabre Holdings Corp.		122,815
	2,600	TMP Worldwide, Inc.*		111,540
	2,037	VeriSign, Inc.*		77,487

				319,942

Leisure – 1.3%
	10,500	Cendant Corp.*		205,905

Life Insurance – 0.5%
	2,700	MetLife, Inc.		85,536

Media – 4.3%
	1,450	Cablevision Systems Corp.		68,803
	2,825	Cablevision Systems Corp.-Rainbow Media Group*		69,777
	1,052	Clear Channel Communications, Inc.*		53,557
	3,600	Comcast Corp.*		129,600
	3,900	EchoStar Communications Corp.*		107,133
	9,700	Liberty Media Corp. Series A*		135,800
	3,400	Univision Communications, Inc.*		137,564

				702,234

Medical Products – 1.8%
	5,000	Johnson & Johnson		295,500

Mining – 0.3%
	1,400	Alcoa, Inc.		49,770

Motor Vehicle – 0.5%
	3,287	Ford Motor Co.		51,672
	702	General Motors Corp.		34,117

				85,789

Oil Services – 0.7%
	2,000	Schlumberger Ltd.		109,900

Other – 3.7%
	5,228	SPDR Trust Series 1		597,194

Property Insurance – 3.2%
	3,700	AMBAC Financial Group, Inc.		214,082
	3,900	American International Group, Inc.		309,660

				523,742

Publishing – 1.5%
	1,100	A.H. Belo Corp.		20,625
	500	Gannett Co., Inc.		33,615
	1,400	The New York Times Co.		60,550
	3,500	Valassis Communications, Inc.*		124,670

				239,460

Restaurants – 0.9%
	5,500	McDonald’s Corp.		145,585

Securities/Asset Management – 1.4%
	900	Merrill Lynch & Co., Inc.		46,908
	800	Morgan Stanley		44,752
	8,850	The Charles Schwab Corp.		136,910

				228,570

Semiconductors – 3.0%
	11,100	Intel Corp.		349,095
	3,400	Texas Instruments, Inc.		95,200
	1,200	Xilinx, Inc.*		46,860

				491,155

Specialty Retail – 2.0%
	3,650	The Home Depot, Inc.		186,187
	4,400	Walgreen Co.		148,104

				334,291

Telecommunications Equipment – 1.4%
	4,380	QUALCOMM, Inc.*		221,190

Telephone – 2.3%
	3,059	AT&T Corp.		55,490
	4,800	SBC Communications, Inc.		188,016
	1,000	Sprint Corp.		20,080
	2,528	Verizon Communications, Inc.*		119,979

				383,565

Tobacco – 1.7%
	6,000	Philip Morris Cos., Inc.		275,100

Wireless – 1.4%
	1,400	American Tower Corp. Class A*		13,258
	8,500	Crown Castle International Corp.*		90,780
	5,400	Sprint Corp. (PCS Group)*		131,814

				235,852

TOTAL COMMON STOCKS
(Cost $17,777,204)			$	16,021,848



Principal		Interest			Maturity
Amount		Rate			Date		Value
Repurchase Agreement – 2.5%

Joint Repurchase Agreement Account^




$	400,000		1.78	%		01/02/2002	$	400,000

TOTAL REPURCHASE AGREEMENT
(Cost $400,000)							$	400,000

TOTAL INVESTMENTS
(Cost $18,177,204)							$	16,421,848

* Non-income producing security.

^ Joint repurchase agreement was entered into on December 31, 2001.

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. 33

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Shareholder Letter

Dear Shareholders:

We are pleased to report on the performance of the Goldman Sachs Variable Insurance Trust — Mid Cap Value Fund. This annual report covers the one-year period that ended December 31, 2001.

Market Review

During the first half of 2001, the stock market was characterized by a return to investment fundamentals and a renewed awareness that earnings and cash flow are vital factors in determining a stock’s value. During the second half of 2001, amid numerous Federal Reserve Board rate cuts and downward revised company expectations, the markets were turbulent, as investors became increasingly pessimistic regarding the state of the economy. In general, investors rotated into defensive stocks, where the outlook seemed safer than in sectors such as Technology. Nearly all the major U.S. indices ended the year in negative territory. Value stocks — especially those with excellent fundamentals — outperformed growth stocks during the period, and mid-sized company stocks outperformed large-cap issues. The Russell Midcap Value Index, a widely followed mid cap value benchmark, increased 2.32% during 2001, while the Russell Mid Cap Growth Index, a mid cap growth benchmark, fell 20.15%.

Performance Review

Over the one-year period that ended December 31, 2001, the Fund generated a 12.05% cumulative total return. Over the same time period, the Fund’s benchmark, the Russell Mid Cap Value Index (with dividends reinvested) generated a 2.32% cumulative total return.

Strong stock selection was the main driver of the Fund’s outperformance versus the benchmark. Our quality bias and emphasis on price and prospects, not merely price, was well founded in this increasingly uncertain investing environment. In addition, the Fund’s diversified portfolio allowed us to offer broad exposure to our best research ideas in all industries. In such a volatile market, the portfolio benefited from its diversification, as it was able to absorb significant declines in certain securities and industries, due to positive results generated in other areas.

In particular, we generated very strong relative returns in the Consumer, Energy and Financial sectors. The top contributor to performance during the year was Ross Stores Inc. (2.2%), a retail and home accessories chain. Through its mix of brand names and home products, Ross Stores has been able to sustain sales growth in a severe California recession. In the Utility sector, our focus on companies like First Energy Co. (2.2%) enhanced results. In this area we focused on companies with strong current cash flow, and avoided independent power producers whose stock prices were more dependent on “hoped for” future growth. This strategy proved to be well founded in this time of market uncertainty.

Conversely, Solectron (0.5%) was a negative contributor to performance, as it experienced slowing sales along with the semiconductor industry in general. Another negative contributor to performance was NewPower Holdings. We sold NewPower later in the year, as new regulations deterred it from entering several markets as previously planned.

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Investment Objective

The Fund seeks long-term capital appreciation, primarily through equity securities of companies with public stock market capitalizations within the range of the market capitalization of companies constituting the Russell Midcap Value Index at the time of investment (currently between $400 million and $16 billion).

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2001*


		% Portfolio
Company	Business

Mid Cap SPDR Trust	Other		2.9	%
Pioneer Natural Resources Co.	Energy Resources		2.3
Ross Stores, Inc.	Clothing		2.2
FirstEnergy Corp.	Electrical Utilities		2.1
Supervalu, Inc.	Food & Beverage		2.1
Ocean Energy, Inc.	Energy Resources		2.1
Aon Corp.	Property Insurance		2.0
ConAgra, Inc.	Food & Beverage		1.8
Deere & Co.	Heavy Machinery		1.8
Energy East Corp.	Electrical Utilities		1.8

Outlook

As in the past, we thank you for your continued confidence.

Goldman Sachs Value Portfolio Management Team

January 11, 2002

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Performance Summary

December 31, 2001

The following graph shows the value as of December 31, 2001, of a $10,000 investment made on May 1, 1998 (commencement of operations). For comparative purposes, the performance of the Fund’s benchmark, the Russell Mid Cap Value Index, is shown. This performance data represents past performance and should not be considered indicative of future performance which will fluctuate 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. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

Mid Cap Value Fund’s Lifetime Performance

Growth of a $10,000 investment, Distributions Reinvested from May 1, 1998 to December 31, 2001.


	Since Inception	One Year




Average Annual Total Return through December 31, 2001




Mid Cap Value Fund (commenced May 1, 1998)	5.06%	12.05%

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Statement of Investments

December 31, 2001



Shares		Description	Value
Common Stocks – 95.8%

Airlines – 0.3%
	40,791	Southwest Airlines Co.	$	753,818

Apartments REIT – 0.9%
	27,169	Archstone-Smith Trust		714,545
	47,397	Equity Residential Properties Trust		1,360,768

				2,075,313

Apparel – 0.5%
	24,438	Jones Apparel Group, Inc.*		810,608
	9,432	Liz Claiborne, Inc.		469,242

				1,279,850

Banks – 7.0%
	67,042	Comerica, Inc.		3,841,507
	172,770	KeyCorp.		4,205,222
	126,872	SouthTrust Corp.		3,129,932
	57,248	UnionBanCal Corp.		2,175,424
	56,566	Wilmington Trust Corp.		3,581,193

				16,933,278

Chemicals – 2.4%
	19,555	Eastman Chemical Co.		763,036
	57,052	Potash Corp. of Saskatchewan, Inc.		3,501,852
	31,466	PPG Industries, Inc.		1,627,421

				5,892,309

Clothing – 2.9%
	164,071	Ross Stores, Inc.		5,263,398
	43,898	The TJX Cos., Inc.		1,749,774

				7,013,172

Computer Hardware – 1.6%
	224,945	Ingram Micro, Inc.*		3,896,047

Computer Software – 1.2%
	47,345	Synopsys, Inc.*		2,796,669

Construction – 1.1%
	66,855	Clayton Homes, Inc.		1,143,220
	46,006	D.R. Horton, Inc.		1,493,355

				2,636,575

Consumer Durables – 1.6%
	24,062	Ethan Allen Interiors, Inc.		1,000,738
	100,457	Herman Miller, Inc.		2,376,813
	11,151	The Stanley Works		519,302

				3,896,853

Defense/Aerospace – 0.4%
	30,062	Raytheon Co.		976,113

Department Stores – 0.9%
	23,569	Federated Department Stores, Inc.*		963,972
	31,382	The May Department Stores Co.		1,160,506

				2,124,478

Drugs – 0.6%
	40,828	Mylan Labs, Inc.		1,531,050

Electrical Equipment – 0.3%
	47,370	Tellabs, Inc.*		711,971

Electrical Utilities – 8.8%
	20,662	American Electric Power Co., Inc.		899,417
	229,235	Energy East Corp.		4,353,173
	71,396	Entergy Corp.		2,792,298
	20,683	Exelon Corp.		990,302
	149,529	FirstEnergy Corp.		5,230,524
	92,063	PPL Corp.		3,208,395
	242,990	Reliant Resources, Inc.*		4,011,765

				21,485,874

Electronic Manufacturing Services – 0.5%
	97,867	Solectron Corp.*		1,103,940

Energy Resources – 5.1%
	264,928	Ocean Energy, Inc.		5,086,618
	81,159	Patterson-UTI Energy, Inc.*		1,891,816
	284,980	Pioneer Natural Resources Co.*		5,488,715

				12,467,149

Environmental Services – 1.7%
	209,513	Republic Services, Inc.*		4,183,975

Equity REIT – 0.8%
	56,353	Health Care Property Investors, Inc.		2,040,542

Financial Services – 1.3%
	43,236	Countrywide Credit Industries, Inc.		1,771,379
	57,541	Metris Cos., Inc.		1,479,379

				3,250,758

Food & Beverage – 5.3%
	168,650	Archer-Daniels-Midland Co.		2,420,128
	186,613	ConAgra, Inc.		4,435,791
	41,992	Interstate Bakeries Corp.		1,015,367
	232,187	Supervalu, Inc.		5,135,976

				13,007,262

Forest – 2.8%
	117,335	Plum Creek Timber Co., Inc.		3,326,447
	126,492	Sonoco Products Co.		3,362,158

				6,688,605

Gas Utilities – 2.1%
	111,739	KeySpan Corp.		3,871,756
	48,796	Sempra Energy		1,197,942

				5,069,698

Heavy Machinery – 1.8%
	100,859	Deere & Co.		4,403,504

Home Products – 1.6%
	86,803	Fortune Brands, Inc.		3,436,531
	15,070	The Estee Lauder Cos., Inc.		483,144

				3,919,675

The accompanying notes are an integral part of these financial statements. 37

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Statement of Investments (continued)

December 31, 2001



Shares		Description	Value
Common Stocks – (continued)

Hotels – 2.3%
	104,548	Harrah’s Entertainment, Inc.*	$	3,869,321
	55,942	Starwood Hotels & Resorts Worldwide, Inc.		1,669,869

				5,539,190

Industrial Parts – 4.1%
	10,249	American Standard Cos., Inc.*		699,289
	30,447	Eaton Corp.		2,265,561
	157,182	Pall Corp.		3,781,799
	72,381	Parker-Hannifin Corp.		3,323,012

				10,069,661

Leisure REIT – 0.5%
	41,259	Hospitality Properties Trust		1,217,141

Life Insurance – 0.5%
	52,289	The Principal Financial Group, Inc.*		1,254,936

Media – 1.3%
	64,323	DoubleClick, Inc.*		729,423
	50,850	Media General, Inc.		2,533,855

				3,263,278

Medical Products – 1.0%
	331,036	WebMD Corp.*		2,337,114

Medical Providers – 3.2%
	103,936	Health Management Associates, Inc.*		1,912,422
	133,106	Humana, Inc.*		1,569,320
	90,858	Manor Care, Inc.*		2,154,243
	37,523	Tenet Healthcare Corp.*		2,203,351

				7,839,336

Mining – 1.0%
	32,941	Nucor Corp.		1,744,555
	22,391	Phelps Dodge Corp.		725,469

				2,470,024

Motor Vehicle – 2.5%
	66,978	Delphi Automotive Systems Corp.		914,919
	18,433	Johnson Controls, Inc.		1,488,465
	32,110	Lear Corp.*		1,224,675
	158,721	Visteon Corp.		2,387,164

				6,015,223

Office/Industry/Mixed – 2.0%
	106,506	Duke-Weeks Realty Corp.		2,591,291
	79,444	Liberty Property Trust		2,371,403

				4,962,694

Oil Services – 0.9%
	62,787	Noble Drilling Corp.*		2,137,269

Other – 2.9%
	75,301	Mid Cap SPDR Trust		6,987,933

Property Insurance – 7.2%
	36,506	Allmerica Financial Corp.		1,626,342
	17,841	AMBAC Financial Group, Inc.		1,032,280
	138,995	Aon Corp.		4,937,103
	27,189	Everest Re Group, Ltd.		1,922,262
	144,573	Old Republic International Corp.		4,049,490
	42,868	The St. Paul Cos., Inc.		1,884,906
	22,359	XL Capital Ltd.		2,042,718

				17,495,101

Publishing – 0.7%
	42,743	A.H. Belo Corp.		801,431
	16,856	Dow Jones & Co., Inc.		922,529

				1,723,960

Railroads – 1.0%
	44,256	Burlington Northern Santa Fe Corp.		1,262,624
	18,089	Union Pacific Corp.		1,031,073

				2,293,697

Restaurants – 2.3%
	79,610	CBRL Group, Inc.		2,343,718
	65,442	Darden Restaurants, Inc.		2,316,647
	20,768	Tricon Global Restaurants, Inc.*		1,021,786

				5,682,151

Retail – 0.4%
	31,003	Simon Property Group, Inc.		909,318

Securities/Asset Management – 1.3%
	32,863	Alliance Capital Management Holding L.P.		1,587,940
	28,635	The Bear Stearns Cos., Inc.		1,679,157

				3,267,097

Semiconductors – 3.2%
	80,578	Arrow Electronics, Inc.*		2,409,282
	96,243	Fairchild Semiconductor Corp.*		2,714,053
	53,681	KEMET Corp.*		952,838
	88,736	Vishay Intertechnology, Inc.*		1,730,352

				7,806,525

Specialty Retail – 1.7%
	46,562	Circuit City Stores-Circuit City Group		1,208,284
	143,599	Toys ‘R’ Us, Inc.*		2,978,243

				4,186,527

Thrifts – 1.6%
	60,355	GreenPoint Financial Corp.		2,157,691
	142,717	Sovereign Bancorp, Inc.		1,746,856

				3,904,547

Tobacco – 0.5%
	33,063	UST, Inc.		1,157,205

38 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND



Shares		Description	Value
Common Stocks – (continued)

Truck Freight – 0.2%
	21,702	Werner Enterprises, Inc.	$	527,359

TOTAL COMMON STOCKS
(Cost $215,502,332)			$	233,185,764



Principal		Interest			Maturity
Amount		Rate			Date		Value
Repurchase Agreement – 4.0%

Joint Repurchase Agreement Account^
$	9,800,000		1.78	%		01/02/02	$	9,800,000

TOTAL REPURCHASE AGREEMENT
(Cost $9,800,000)							$	9,800,000

TOTAL INVESTMENTS
(Cost $225,302,332)							$	242,985,764

* Non-income producing security.

^ Joint repurchase agreement was entered into on December 31, 2001.

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. 39

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Shareholder Letter

Dear Shareholders:

We are pleased to report on the performance of the Goldman Sachs Variable Insurance Trust — International Equity Fund. This annual report covers the one-year period that ended December 31, 2001.

Market Review

The international equity markets fell during the year, with the MSCI EAFE Index falling 21.21%. Aside from a brief rally in April and a pickup in the fourth quarter, the markets were consistently weak. Concerns over the prospects of corporate profitability in a period of slowing global demand dominated sentiment, as earnings announcements continued to disappoint investors. These issues became even more acute in the immediate aftermath of the atrocities of September 11.

Prior to the terrorist attack, consumer demand was holding up fairly well. Real income growth was solid, the core of the labor market was robust and confidence was relatively high, given the economic conditions. While September 11 was to many an event that would plunge the world into recession, economic data released shortly afterwards suggested that the world economy had started to deteriorate earlier in the year.

In response to growing evidence of a U.S. economic slowdown, the Federal Reserve Board cut interest rates by 475 basis points in 2001. For much of the year, the European Central Bank (the “ECB”) held monetary conditions tight, as interest rate policy wrestled not only with producer price inflation, but also a weak Euro. However, the ECB eventually eased rates, cutting a total of 150 basis points. The UK Monetary Policy Committee was slightly more aggressive, lowering rates by 200 basis points.

At the regional level, the European markets were weak, with the MSCI Europe Index falling 16.12%, while the UK performed somewhat better, but still posted a double-digit decline. The MSCI Japan Index lost 18.8%, making it the worst performing region. The weak Yen made the situation even worse in U.S. dollar terms. The Pacific region was the strongest over the period, falling only 5.0%. The region performed especially well during the fourth quarter.

At a sector level, Information Technology was the worst performer, dropping 27.5% over the year in response to a weakening demand outlook, which in turn gave rise to widespread profit warnings. However, the sector did enjoy a buoyant fourth quarter, as investors began to anticipate an economic recovery in 2002. The Telecom sector was a more steady decliner, as it continued to underperform during the fourth quarter. The only area to finish the year in positive territory was the Materials sector, which rose a scant 0.1%.

In terms of currencies, the U.S. Dollar was the strongest performer during the period, appreciating 14.8% versus the Yen, 2.6% versus Sterling, and 6.5% versus the Euro.

Performance Review

Over the one-year period that ended December 31, 2001, the Fund generated a -22.26% cumulative total return. Over the same time period, the Fund’s benchmark, the MSCI EAFE Index (unhedged with dividends reinvested) generated an aggregate total return of -21.21%.

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

As these returns indicate, it has been an extremely challenging period in the financial markets. During the period, our overweight in the Healthcare sector detracted from performance, as the Japanese regulatory environment abruptly changed. To the surprise of many, the Ministry of Health, Labor and Welfare in Japan announced that companies producing relatively old drugs where generic drugs were not available would have to institute significant price reductions. In particular, this hurt our holding in Banyu (0.8% of the portfolio as of December 31, 2001). The sector was also negatively impacted by a number of high profile patent cases.

Conversely, our overweight in the Consumer Staples sector was positive for performance during the reporting period. In the early part of the year this relatively defensive sector did well, as investors sought companies with predictable earnings and stable demand. In the immediate aftermath of September 11, we once again benefited from this position, as the market sought refuge from an uncertain environment by favoring companies with strong balance sheets and dominant franchises.

Investment Objective

The Fund seeks long-term capital appreciation, primarily through equity securities of companies that are organized outside the United States or whose securities are principally traded outside the United States.

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2001*


Company	County	Business	% Portfolio

Vodafone Group PLC	United Kingdom	Wireless		4.0	%
Total Fina SA Class B	France	Energy Resources		3.3
Nestle SA	Switzerland	Food & Beverage		3.2
GlaxoSmithKline PLC	United Kingdom	Drugs		3.0
Barclays PLC	United Kingdom	Banks		2.7
Takeda Chemical Industries Ltd.	Japan	Drugs		2.6
Nokia Oyj	Finland	Telecommunications		2.4
Muenchener Rueckversicherungs-Gesellschaft AG	Germany	Property Insurance		2.4
Bank of Ireland	Ireland	Banks		2.4
Novartis AG	Switzerland	Health		2.3

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Shareholder Letter (continued)

Outlook

Europe — The European economic outlook was unusually cloudy in the aftermath of September 11. The attacks initially had a dramatic impact on consumer and business confidence in both the U.S. and Europe. Corporations accelerated the pace of job cuts, which acted as a further damper on consumer demand, with U.S. retail sales falling 3.7% in November, the largest monthly decline since tracking began in 1992. However, following significant monetary and fiscal policy easing, we believe that the slowdown in economic activity will be relatively short lived, with final demand starting to recover as 2002 progresses. The anticipation of such an economic recovery is likely to provide a supportive environment for equities, particularly since low interest rates reduce the attraction of cash holdings. We also believe that consensus forecasts of low double-digit earnings growth in 2002 may be exceeded following aggressive cost reduction exercises in the corporate sector over the past 18 months.

Japan — We remain cautious on Japanese equities near term. The market’s expectation of an earnings recovery for the next fiscal year appears somewhat optimistic. Earnings of listed companies are expected to fall 40% for the year ending March 2002 and to recover next year, probably during the second half, aided by the recovery in the U.S. Given continued deflationary pressures and a risk that the U.S. economic recovery is delayed, these numbers appear to be difficult to attain. We continue to look for stocks that have strong recovery potential that are selling at reasonable valuations, while maintaining an exposure to defensive sectors. Currently, we have enough defensive names in our portfolio and we feel our current risk is to be behind the market under the theme of re-flation. We believe most of the Technology stocks already reflect high expectations for earnings recovery and we would be selective in adding these issues.

Asia — Given such a strong recovery in Asia during the fourth quarter, we are cautious that further short-term upside could be limited, as the liquidity-driven rally lacks fundamental support. However, more liquidity returning into the equity markets could continue to push the markets higher. Therefore, equity markets in the region are likely to remain volatile until the U.S. shows clearer signs of an economic recovery.

We thank you for your investment and look forward to serving your investment needs in the future.

Goldman Sachs International Equity Portfolio Management Team

January 11, 2002

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Performance Summary

December 31, 2001

The following graph shows the value as of December 31, 2001, of a $10,000 investment made on January 12, 1998 (commencement of operations). For comparative purposes, the performance of the Fund’s benchmarks (FT Euro-Pac Unhedged) and the Morgan Stanley Capital International Europe, Australia and Far East Index (“MSCI EAFE (unhedged)”) are shown. This performance data represents past performance and should not be considered indicative of future performance which will fluctuate 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. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

International Equity Fund’s Lifetime Performance

Growth of a $10,000 investment, Distributions Reinvested from January 12, 1998 to December 31, 2001.


	Since Inception	One year




Average Annual Total Return through December 31, 2001




International Equity Fund (commenced January 12, 1998)	1.68%	-22.26%

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Statement of Investments

December 31, 2001



Shares		Description	Value

Common Stocks – 92.3%

Australia – 1.5%
	6,472	Australia & New Zealand Banking Group Ltd. (Financial Services)	$	58,996
	21,101	BHP Ltd. (Mining)		113,406
	3	Brambles Industries Ltd. (Multi-Industrial)		16
	16,004	Woolworths Ltd. (Specialty Retail)		92,074

				264,492

Belgium – 0.4%
	2,557	Interbrew (Food & Beverage)		69,991

Finland – 2.4%
	16,784	Nokia Oyj (Telecommunications)		432,670

France – 8.5%
	491	Axa (Insurance)		10,258
	1,106	Castorama Dubois Investissement SA (Specialty Retail)		56,954
	7,815	European Aeronautic Defence & Space Co. (Aerospace/Defense)		94,887
	3,912	Lafarge SA (Construction)		365,290
	626	Pernod-Ricard SA (Food & Beverage)		48,479
	4,644	Schneider Electric SA (Electrical Equipment)		223,228
	4,058	Total Fina SA Class B (Energy Resources)		579,402
	2,387	Vivendi Universal SA (Media)		130,674

				1,509,172

Germany – 5.6%
	10,624	Bayerische Motoren Werke (BMW) AG (Auto)		370,240
	250	Deutsche Bank AG (Banks)		17,669
	1,559	Muenchener Rueckversicherungs-Gesellschaft AG (Property Insurance)		423,192
	1,396	SAP AG (Computer Software)		181,800

				992,901

Hong Kong – 2.3%
	14,000	Hang Seng Bank Ltd. (Banks)		153,955
	4,500	Hongkong Electric Holdings Ltd. (Electrical Utilities)		16,736
	24,300	Hutchison Whampoa Ltd. (Multi-Industrial)		235,279

				405,970

Ireland – 3.1%
	44,525	Bank of Ireland (Banks)		418,179
	2,900	Elan Corp. PLC ADR* (Drugs)		130,674

				548,853

Italy – 4.4%
	29,500	Mediaset SpA (Media)		215,590
	62,000	Snam Rete Gas SpA* (Gas Utilities)		163,912
	17,315	Telecom Italia SpA (Telecommunications)		147,964
	63,500	UniCredito Italiano SpA (Banks)		254,926

				782,392

Japan – 19.7%
	9,000	Banyu Pharmaceutical Co. Ltd. (Drugs)		133,959
	5,900	C&S Co. Ltd (Specialty Retail)		152,217
	6,000	Canon, Inc. (Computer Hardware)		206,549
	25,000	Daiwa Securities Group, Inc. (Financial Services)		131,479
	4,000	Fuji Photo Film Co. Ltd. (Leisure)		142,890
	8,600	Honda Motor Co. Ltd. (Auto)		343,317
	1,300	Hoya Corp. (Electrical Equipment)		77,696
	1,000	Isetan Co. Ltd. (Retail-Major Department Store)		10,251
	8,000	Kao Corp. (Consumer Products)		166,400
	800	KEYENCE CORP (Electronics Equipment)		133,059
	34,000	Mitsui Sumitomo Insurance Co. Ltd. (Insurance)		159,606
	11,000	NGK Insulators Ltd. (Multi-Industrial)		81,528
	4	Nippon Telephone & Telegraph Corp. (Telecommunications)		13,037
	13,000	Ricoh Co. Ltd. (Computer Hardware)		242,119
	4,000	Sanyo Electric Co. Ltd. (Electrical Equipment)		18,899
	10,000	Sharp Corp. (Electrical Equipment)		117,014
	3,500	Shin-Etsu Chemical Co. Ltd. (Chemicals)		125,830
	4,000	Skylark Co. Ltd. (Restaurants)		67,171
	300	SMC Corp. (Machinery)		30,547
	1,000	Sumitomo Corp. (Wholesale)		4,587
	2,000	Sumitomo Mitsui Banking Corp. (Commercial Banks)		8,473
	2,000	Suzuki Motor Corp. (Auto)		21,892
	10,000	Taisho Pharmaceutical Co. Ltd. (Health)		157,240
	10,000	Takeda Chemical Industries Ltd. (Drugs)		452,637
	14,000	The Sumitomo Trust & Banking Co. Ltd. (Banks)		56,851
	3,600	Tokyo Electric Power (Electrical Utilities)		76,666
	50,000	Tokyo Gas Co. Ltd. (Energy Resources)		133,959
	6,300	Toppan Forms Co. Ltd. (Publishing)		105,553
	5,100	Toyota Motor Corp. (Auto)		129,242
	3	UFJ Holdings, Inc.* (Banks)		6,618

				3,507,286

44 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND



Shares		Description	Value

Common Stocks – (continued)

Netherlands – 4.9%
	80	Aegon NV (Insurance)	$	2,165
	5,432	ASM Lithography Holding NV* (Semiconductors)		94,385
	2,286	Gucci Group (Apparel)		194,433
	10,492	ING Groep NV (Financial Services)		267,482
	515	Koninklijke Royal Philips Electronics NV (Appliance)		15,302
	321	Royal Dutch Petroleum Co. (Energy Resources)		16,258
	1,229	Unilever NV (Food & Beverage)		72,040
	6,621	VNU NV (Media)		203,391

				865,456

Singapore – 0.0%
	5,000	Singapore Technologies Engineering Ltd. (Machinery)		6,363

Spain – 3.7%
	2,838	Acerinox SA (Steel)		94,861
	7,540	Banco Bilbao Vizcaya Argentaria SA (Banks)		93,293
	9,807	Banco Santander Central Hispano SA (Banks)		82,146
	10,865	Industria de Diseno Textil SA* (Apparel)		207,066
	13,204	Telefonica de Espana SA* (Telecommunications)		176,656

				654,022

Sweden – 2.3%
	6,610	Securitas AB Series B (Business Services)		125,839
	25,387	Skandia Forsakrings (Insurance)		184,580
	19,059	Telefonaktiebolaget LM Ericsson AB Series B (Telecommunications)		103,928

				414,347

Switzerland – 9.3%
	4,639	Adecco SA (Business Services)		252,271
	4,120	Converium Holding AG* (Insurance)		200,340
	2,671	Nestle SA (Food & Beverage)		569,736
	11,420	Novartis AG (Health)		412,871
	1,651	Roche Holding AG (Health)		117,886
	2,044	UBS AG* (Banks)		103,210

				1,656,314

United Kingdom – 24.2%
	14,229	Amvescap PLC (Financial Services)		204,999
	178	AstraZeneca Group PLC (Health)		8,017
	12,497	BAA PLC (Airlines)		100,015
	14,563	Barclays PLC (Banks)		481,656
	490	BP PLC ADR (Energy Resources)		22,790
	37,285	BP PLC (Energy Resources)		289,454
	12,007	British Sky Broadcasting Group PLC* (Media)		131,966
	14,506	Exel PLC (Industrial Services)		165,547
	21,413	GlaxoSmithKline PLC (Drugs)		536,373
	1,880	GlaxoSmithKline PLC ADR (Drugs)		93,662
	1,346	HSBC Holdings PLC (Banks)		15,772
	84,540	International Power PLC* (Electrical Utilities)		248,881
	28,836	P & O Princess Cruises PLC (Leisure)		167,687
	9,439	Reckitt Benckiser PLC (Food & Beverage)		137,224
	540	Royal Bank of Scotland Group PLC (Banks)		13,126
	12,766	Shell Transport & Trading Co. PLC (Energy Resources)		87,599
	19,042	Six Continents PLC (Leisure)		188,246
	26,900	Smiths Group PLC (Conglomerates)		264,756
	110,815	Tesco PLC (Specialty Retail)		401,146
	270,566	Vodafone Group PLC (Wireless)		707,044
	1,420	Vodafone Group PLC ADR (Wireless)		36,466

				4,302,426

TOTAL COMMON STOCKS
(Cost $17,926,690)			$	16,412,655

The accompanying notes are an integral part of these financial statements. 45

Statement of Investments (continued)

December 31, 2001

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND



Principal		Interest			Maturity
Amount		Rate			Date		Value
Short-Term Obligation – 6.4%

State Street Bank & Trust Euro Time Deposit Δ
$	1,128,000		1.69	%		01/02/2002	$	1,128,000

TOTAL SHORT-TERM OBLIGATION
(Cost $1,128,000)							$	1,128,000

TOTAL INVESTMENTS
(Cost $19,054,690)							$	17,540,655


*		Non-income producing security.

Δ		A portion of this security is segregated as collateral for initial margin requirements on futures transactions.


	As a % of
	Total
	Net Assets
Common Stock Industry Classifications

Aerospace/Defense		0.5	%
Airlines		0.6
Apparel		2.3
Appliance		0.1
Auto		4.9
Banks		9.6
Business Services		2.1
Chemicals		0.7
Computer Hardware		2.5
Computer Software		1.0
Conglomerates		1.5
Construction		2.1
Consumer Products		0.9
Drugs		7.6
Electrical Equipment		2.5
Electrical Utilities		1.9
Electronics Equipment		0.7
Energy Resources		6.4
Financial Services		3.7
Food & Beverage		5.1
Gas Utilities		0.9
Health		3.9
Industrial Services		0.9
Insurance		3.1
Leisure		2.8
Machinery		0.2
Media		3.8
Mining		0.6
Multi-Industrial		1.8
Property Insurance		2.4
Publishing		0.6
Restaurants		0.4
Retail-Major Department Store		0.1
Semiconductors		0.5
Specialty Retail		4.0
Steel		0.5
Telecommunications		4.9
Wireless		4.2

TOTAL COMMON STOCK		92.3	%

The percentage shown for each investment category reflects the value of investments in that category as a percentage of total net assets.

46 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST GLOBAL INCOME FUND

Shareholder Letter

Dear Shareholders:

We are pleased to report on the performance of the Goldman Sachs Variable Insurance Trust — Global Income Fund. This annual report covers the one-year period that ended December 31, 2001.

Market Review

Global bond markets performed well during the year, especially compared to their equity counterparts. This strong performance was driven by slowing economic growth, which was further exacerbated by the terrorist attacks in September. The U.S. bond market was the best performing of the major markets, as the Federal Reserve Board (the “Fed”) eased monetary policy aggressively in 2001. Two-year Treasury yields hit a 40-year low, as the Fed cut rates by 475 basis points during the year (to 1.75%) to stimulate a weakening economy. As a result, the bond market rally was led by the short end of the curve, with two-year yields falling by 207 basis points in 2001, while 10-year and 30-year yields remained virtually unchanged. European and UK bond markets largely mirrored U.S. Treasuries, as the European Central Bank (the “ECB”) and Bank of England followed the Fed and cut rates by 150 and 200 basis points, respectively. Japanese bonds lagged the other major markets, but delivered solid returns, as the Japanese economy continued to be mired in recession while suffering from broad-based deflation.

Performance Review

Over the one-year period that ended December 31, 2001, the Fund generated a 4.80% cumulative total return. Over the same time period, the Fund’s benchmark, the JP Morgan Global Government Bond Index (hedged into U.S. dollars), generated an aggregate total return of 6.15%. The Fund’s underperformance versus the benchmark was largely due to its sector and security selection.

Investment Objective

The Fund seeks high total return, emphasizing current income and, to a lesser extent, providing opportunities for capital appreciation, primarily through investments in fixed income securities of U.S. and foreign issuers and foreign currencies.

Portfolio Composition

Top Portfolio Holdings as of December 31, 2001 *


Bonds Denomination	% Portfolio

U.S. Dollar		38.5	%
Euro Currency		31.0
Japanese Yen		11.7
Great Britain Pound		6.3
U.S. Dollar Cash Equivalent		5.8
Canadian Dollar		1.5
Swedish Krona		1.2
Danish Krone		1.2

* Figures represent a percentage of net assets and may not sum to 100%. The Fund is actively managed and, as such, its components may differ over time.

GOLDMAN SACHS VARIABLE INSURANCE TRUST GLOBAL INCOME FUND

Shareholder Letter (continued)

Outlook

There has undoubtedly been stabilization in a wide range of U.S. economic indicators. However, we believe much of this recovery is “catch-up” on the inactivity in the immediate aftermath of the terrorist attack, and that a sustained recovery in the aggregate data is not yet assured. It is our belief that the market has gotten ahead of itself and is discounting excessive rate hikes.

Given the generation-low absence of inflationary pressures, substantial slack in the economy. and the magnitude of the recent sell-off, we see significant short-term value in U.S. bonds. With U.S. consumer spending accounting for 20% of consumer demand in the OECD (Organization for Economic Cooperation and Development) markets, we expect further moderation of economic activity in the Eurozone. However, we do not expect the ECB to cut rates in the early part of the year. In the near-term, we see better value on the other side of the Atlantic, and as a result maintain our underweight position in Europe versus the U.S. Given the relative strength of the UK economy, early fiscal stimulus by the government and upward pressure on long yields, we maintain a short position in long gilts.

We continue to hold a negative economic outlook for Japan, given persistent price deflation and no sign of a pick-up in capital investment activity. Based on the unattractive yield levels at the short end of the Japanese curve, we remain underweight duration in Japan, owning no bonds with less than seven years maturity. At the same time, we maintain our curve flattening trade, reflecting our bullish view on Japanese long bonds, that should be backed by a continually deteriorating economy.

Despite the recent performance of corporate bonds, we believe wide spreads continue to provide an adequate cushion to assume high quality non-government bond risk over a 12-18 month horizon, as well as increased opportunities for sector selection. However, in the short-term there are risks, especially in the event of a further slowdown, before fiscal and monetary stimuli already in the pipeline take effect. This reinforces our ongoing view that security selection is key, with a focus on high quality cyclical names that can sustain a period of revenue decline going forward.

We thank you for your investment and look forward to your continued confidence.

Goldman Sachs Global Income Management Team

January 11, 2002

GOLDMAN SACHS VARIABLE INSURANCE TRUST GLOBAL INCOME FUND

Performance Summary

December 31, 2001

The following graph shows the value as of December 31, 2001, of a $10,000 investment made on January 12, 1998 (commencement of operations). For comparative purposes, the performance of the Fund’s benchmark (the J.P. Morgan Global Government Bond Index hedged to U.S. Dollars (the “J.P. Morgan GGB Index— $ Hedged”)) is shown. This performance data represents past performance and should not be considered indicative of future performance which will fluctuate 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. Returns do not reflect the reduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

Global Income Fund’s Lifetime Performance

Growth of a $10,000 Investment, Distributions Reinvested from January 12, 1998 to December 31, 2001.


		One
	Since Inception	Year




Average Annual Total Return through December 31, 2001




Global Income Fund (commenced January 12, 1998)	6.63%	4.80%

GOLDMAN SACHS VARIABLE INSURANCE TRUST GLOBAL INCOME FUND

Statement of Investments

December 31, 2001


Principal		Interest			Maturity
Amount €		Rate			Date		Value
Foreign Debt Obligations – 52.9%

Canadian Dollar – 1.5%
Government of Canada
	CAD300,000		6.00	%		06/01/2011	$	197,258
	50,000		8.00			06/01/2027		40,696

								237,954

Danish Krone – 1.2%
Kingdom of Denmark
	DKK400,000		8.00			05/15/2003		50,373
	1,000,000		8.00			03/15/2006		134,042

								184,415

Euro Currency – 31.0%
British Telecom PLC
	EUR140,000		6.13	%		02/15/2006		128,350
Clear Channel Communications, Inc.
	100,000		6.50			07/07/2005		91,629
Federal Republic of Germany
	600,000		5.25			01/04/2011		543,308
	200,000		5.00			07/04/2011		177,844
	50,000		6.25			01/04/2024		49,020
	160,000		6.25			01/04/2030		158,857
Government of France
	650,000		3.50			07/12/2004		574,383
	300,000		5.50			04/25/2010		276,408
	250,000		8.50			10/25/2019		299,047
	200,000		5.50			04/25/2029		178,147
Household Finance Corp.
	50,000		5.88			03/31/2008		44,178
Kingdom of Belgium
	300,000		6.50			03/31/2005		285,725
Lehman Brothers Holdings PLC
	100,000		4.75			07/12/2004		89,557
Republic of Italy
	350,000		5.00			02/15/2003		317,077
	200,000		4.75			07/01/2005		180,769
	200,000		5.50			11/01/2010		182,660
	100,000		6.50			11/01/2027		98,821
	100,000		5.25			11/01/2029		84,456
Royal Bank of Scotland Group PLC
	100,000		4.88			03/26/2009		85,618
Sogerim SA
	100,000		7.00			04/20/2011		90,952
Standard Chartered Bank PLC
	50,000		5.38			05/06/2009		43,159
TPSA Eurofinance B.V.
	50,000		6.63			03/01/2006		44,683
Treuhandanstalt
	600,000		7.13			01/29/2003		554,231
Tyco International Group SA
	100,000		6.13			04/04/2007		90,171
VNU NV
	50,000		6.75			10/29/2008		44,931
Vodafone Group PLC
	100,000		5.75			10/27/2006		91,330

								4,805,311

Great Britain Pound – 6.3%
Deutsche Ausgleichsbank
	GBP100,000		6.50	%		01/15/2008	$	151,355
GMAC Canada Ltd.
	150,000		6.50			03/23/2004		216,870
United Kingdom Treasury
	40,000		7.25			12/07/2007		64,412
	250,000		5.00			03/07/2012		361,560
	50,000		8.00			06/07/2021		100,269
	50,000		6.00			12/07/2028		85,883

								980,349

Japanese Yen – 11.7%
Government of Japan
	JPY10,000,000		0.50	%		08/20/2002		76,560
	20,000,000		0.40			06/20/2003		153,408
	120,000,000		0.90			12/22/2008		915,960
	50,000,000		1.30			06/20/2011		381,070
	22,000,000		2.50			12/21/2020		182,188
	15,000,000		1.90			03/22/2021		112,687

								1,821,873

Swedish Krona – 1.2%
Kingdom of Sweden
	SEK2,000,000		3.50	%		04/20/2006		180,939

TOTAL FOREIGN DEBT OBLIGATIONS
(Cost $8,547,080)								8,210,841

Corporate Bonds – 11.5%

Automotive – 0.9%
Ford Motor Credit Co.
	USD50,000		6.88	%		02/01/2006		50,072
	100,000		6.50			01/25/2007		97,833

								147,905

Electric – 0.7%
Wisconsin Energy Corp.
	USD100,000		5.88	%		04/01/2006		101,429

Energy – 0.7%
Kinder Morgan, Inc.
	USD100,000		6.45	%		03/01/2003		102,855

Finance Companies – 4.2%
Citigroup, Inc.
	USD50,000		6.75	%		12/01/2005		53,160
Household Finance Corp.
	100,000		8.00			05/09/2005		107,235
HSBC USA, Inc.
	70,000		8.38			02/15/2007		78,005
Merrill Lynch Co., Inc.
	100,000		6.00			02/12/2003		103,599
Nederlandse Waterschapsbank
	100,000		6.13			02/13/2008		103,388

50 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST GLOBAL INCOME FUND


Principal		Interest			Maturity
Amount €		Rate			Date		Value
Corporate Bonds – (continued)

Finance Companies – (continued)
Nisource Finance Corp.
	USD50,000		5.75	%		04/15/2003	$	50,854
Sprint Capital Corp.
	50,000		6.00			01/15/2007		49,015
Wells Fargo
	100,000		7.60			05/03/2005		108,747

								654,003

Insurance Companies – 0.7%
Prudential Financial
	USD100,000		6.38	%		07/23/2006		102,349

Publishing – 0.3%
Reed Elsevier Capital, Inc.
	USD50,000		6.13	%		08/01/2006		50,889

Supermarkets – 0.3%
Delhaize America, Inc.
	USD40,000		7.38	%		04/15/2006		42,406

Telecommunications – 2.0%
AT&T Corp.†
	USD100,000		7.30	%		11/15/2011		102,442
AT&T Wireless Services, Inc.
	50,000		7.88			03/01/2011		53,451
Deutsche Telekom International Finance B.V.
	150,000		7.75			06/15/2005		160,487

								316,380

Tobacco – 1.0%
Imperial Tobacco O/ S B.V.
	USD50,000		7.13	%		04/01/2009		50,922
Philip Morris Cos., Inc.
	100,000		7.13			10/01/2004		106,721

								157,643

Yankee Banks – 0.7%
National Australia Bank Ltd.
	USD100,000		8.60	%		05/19/2010		114,537

TOTAL CORPORATE BONDS
(Cost $1,697,871)							$	1,790,396

U.S. Treasury Obligations – 27.0%

United States Treasury Bonds
	USD200,000		8.88	%		08/15/2017		265,500
	420,000		8.13			08/15/2019		530,317
	360,000		7.50			11/15/2024		438,862
	290,000		6.25			05/15/2030		313,835
United States Treasury Notes
	200,000		3.63			08/31/2003		202,812
	200,000		2.75			09/30/2003		199,719
	100,000		6.75			05/15/2005		108,727
	100,000		4.63			05/15/2006		101,394
	1,100,000		7.00			07/15/2006		1,216,182
	110,006		3.63			01/15/2008		111,174
	500,000		5.63			05/15/2008		523,830
	170,000		5.00			08/15/2011		169,575

TOTAL U.S. TREASURY OBLIGATIONS
(Cost $4,222,793)							$	4,181,927

Short-Term Obligation — 5.8%

State Street Bank & Trust Euro Time Deposit Δ
	USD904,000		1.69	%		01/02/2002	$	904,000

TOTAL SHORT-TERM OBLIGATION
(Cost $904,000)							$	904,000

TOTAL INVESTMENTS
(Cost $15,371,744)							$	15,087,164


€		The principal amount of each security is stated in the currency in which the bond is denominated. See below.

		CAD – Canadian Dollar

		DKK – Danish Krone

		EUR – Euro Currency

		GBP – Great Britain Pound

		JPY – Japanese Yen

		SEK – Swedish Krona

		USD – United States Dollar

†		Securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers in transactions exempt from registration. Total market value of Rule 144A securities amounted to $102,442 representing 0.7% of net assets, as of December 31, 2001.

Δ		A portion of this security is segregated as collateral for initial margin requirements on futures transactions.

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. 51

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNET TOLLKEEPER FUND^SM

Shareholder Letter

Dear Shareholders:

We are pleased to report on the performance of the Goldman Sachs Variable Insurance Trust — Internet Tollkeeper Fund. This annual report covers the one-year period that ended December 31, 2001.

Market Review

Investment Objective

The Fund seeks capital appreciation by investing primarily in the media, telecommunications, technology and Internet sectors.

Performance Review

During the one-year period that ended December 31, 2001, the Fund generated a -33.68% cumulative total return. Over the same time period the Fund’s benchmarks, the Goldman Sachs Internet Index, the NASDAQ Composite and S&P 500 Index (with dividends reinvested) generated cumulative total returns of -42.23%, -21.05% and -11.88%, respectively.

As previously explained in the Market Review section, the Technology sector as a whole experienced another difficult year. After plunging 39% in 2000, the technology-laden NASDAQ fell another 21.05% in 2001. In particular, the Media & Communication sector continued to be volatile, as investors remained wary of this area. Many stocks in this sector were battered throughout the year, and visibility as to when a turnaround will occur remains questionable. The market’s primary concern centers on the fact that corporate spending on advertising may continue to be reduced as the U.S. economy’s growth rate continues to slow. As a result of the overriding cynicism, even well-diversified media companies such as AOL Time Warner, Inc. (5.8% of the Fund’s portfolio as of December 31, 2001) and Viacom, Inc. (7.3%), declined along with the rest of the industry. However, we believe these strong

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNET TOLLKEEPER FUND^SM

franchises, with their diversified revenue streams, are well positioned to benefit when we emerge from the current economic slowdown.

We also believe that cable companies are solid long-term businesses, due to their excellent cash flow characteristics and recurring revenue streams. Additionally, these companies continue to benefit as the number of subscribers to high-speed Internet access through cable continues to grow. These companies are leveraging their broadband networks to extend them beyond basic multi-channel programming into digital broadcasting, video-on-demand, high-speed data services, and telephone service. Comcast Corp. (3.6%) which recently announced that it would be buying AT&T’s cable unit, will now become the largest cable operator in the nation. Comcast continues to benefit from the digital cable revolution.

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2001*


		% Portfolio
Company	Business

Viacom, Inc. Class B	Entertainment		7.3	%
Microsoft Corp.	Computer Software		6.7
AOL Time Warner, Inc.	Entertainment		5.8
Crown Castle International Corp.	Wireless		5.0
Westwood One, Inc.	Media		4.2
First Data Corp.	Information Services		4.2
VeriSign, Inc.	Internet		3.6
Comcast Corp.	Media		3.6
Liberty Media Corp. Series A	Media		3.5
Clear Channel Communications, Inc.	Media		3.3

Outlook

This is not a forecast, but rather an assumption so that we can test the strength of our companies under the upcoming economic environment. Going forward, we will continue to focus our efforts on the strength and sustainability of our companies’ financial statements — a practice that we have always employed.

Goldman Sachs Growth Portfolio Management Team

January 11, 2002

Internet Tollkeeper is a service mark of Goldman, Sachs & Co.

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNET TOLLKEEPER FUND^SM

Performance Summary

December 31, 2001

The following graph shows the value as of December 31, 2001, of a $10,000 investment made on April 28, 2000 (commencement of operations). For comparative purposes, the performance of the Fund’s benchmarks (the S&P 500 Index, NASDAQ Composite Index and Goldman Sachs Internet Index) are shown. This performance data represents past performance and should not be considered indicative of future performance which will fluctuate 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. Returns do not reflect the reduction of taxes that a shareholder would pay fund distributions or the redemption of fund shares.

Internet Tollkeeper Fund’s Lifetime Performance

Growth of a $10,000 Investment, Distributions Reinvested from April 28, 2000 to December 31, 2001.


	Since Inception	One Year




Average Annual Total Return through December 31, 2001




Internet Tollkeeper Fund (commenced April 28, 2000)	-37.76%	-33.68%

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNET TOLLKEEPER FUND^SM

Statement of Investments

December 31, 2001



Shares		Description	Value
Common Stocks – 97.4%

Computer Hardware – 6.6%
	4,230	Cisco Systems, Inc.*	$	76,605
	4,450	EMC Corp.		59,808
	3,989	McDATA Corp. Class A*		97,731
	4,020	Sun Microsystems, Inc.*		49,446

				283,590

Computer Software – 11.0%
	920	Avocent Corp.*		22,310
	2,710	Intuit, Inc.*		115,879
	4,330	Microsoft Corp.*		286,949
	3,170	Oracle Corp.*		43,778

				468,916

Entertainment – 14.1%
	7,735	AOL Time Warner, Inc.*		248,294
	1,860	Metro-Goldwyn-Mayer, Inc.*		40,734
	7,063	Viacom, Inc. Class B*		311,831

				600,859

Home Products – 0.7%
	1,600	Energizer Holdings, Inc.*		30,480

Information Services – 5.6%
	2,270	First Data Corp.		178,082
	2,130	Travelocity.com, Inc.*		61,152

				239,234

Internet – 15.0%
	1,885	Check Point Software Technologies Ltd.*		75,193
	3,030	CheckFree Corp.*		54,540
	4,515	CNET Networks, Inc.*		40,500
	6,080	Interwoven, Inc.*		59,219
	2,810	Sabre Holdings Corp.		119,003
	2,380	TMP Worldwide, Inc.*		102,102
	4,069	VeriSign, Inc.*		154,785
	1,930	Yahoo!, Inc.*		34,238

				639,580

Leisure – 2.3%
	5,020	Cendant Corp.*		98,442

Media – 24.0%
	1,770	Cablevision Systems Corp.		83,986
	3,910	Cablevision Systems Corp.-Rainbow Media Group*		96,577
	2,737	Clear Channel Communications, Inc.*		139,341
	4,270	Comcast Corp.*		153,720
	1,740	EchoStar Communications Corp.*		47,798
	2,485	Gemstar-TV Guide International, Inc.*		68,835
	10,540	Liberty Media Corp. Series A*		147,560
	2,690	Univision Communications, Inc.*		108,837
	6,010	Westwood One, Inc.*		180,600

				1,027,254

Securities/ Asset Management – 2.0%
	5,445	The Charles Schwab Corp.		84,234

Semiconductors – 4.6%
	4,800	Integrated Circuit Systems, Inc.*		108,432
	1,170	Intersil Corp.*		37,733
	1,300	Xilinx, Inc.*		50,765

				196,930

Telecommunications Equipment – 3.0%
	2,510	QUALCOMM, Inc.*		126,755

Wireless – 8.5%
	4,160	American Tower Corp. Class A*		39,395
	20,130	Crown Castle International Corp.*		214,989
	4,430	Sprint Corp. (PCS Group)*		108,136

				362,520

TOTAL COMMON STOCKS
(Cost $4,245,440)			$	4,158,794



Principal		Interest			Maturity
Amount		Rate			Date		Value
Repurchase Agreement – 2.4%

Joint Repurchase Agreement Account^
$	100,000		1.78	%		01/02/2002	$	100,000

TOTAL REPURCHASE AGREEMENT
(Cost $100,000)							$	100,000

TOTAL INVESTMENTS
(Cost $4,345,440)							$	4,258,794

* Non-income producing security.

^ Joint repurchase agreement was entered into on December 31, 2001.

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. 55

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Statements of Assets and Liabilities

December 31, 2001


		Growth and			CORE U.S.			CORE Large Cap
		Income Fund			Equity Fund			Growth Fund

Assets:

Investment in securities, at value (identified cost $40,698,552, $165,655,370, $23,511,107, $49,302,486, $18,177,204, $225,302,332, $19,054,690, $15,371,744 and $4,345,440, respectively)		$	40,812,422		$	162,686,983		$	22,233,504
Cash, at value^(a)			7,379			908,547			110,000
Receivables:
	Investment securities sold		36,263			—			—
	Dividends and interest, at value		41,055			120,139			16,329
	Fund shares sold		90,523			552,266			18,341
	Forward foreign currency exchange contracts		—			—			—
	Variation margin		—			—			—
	Reimbursement from adviser		13,557			—			29,575
Deferred organization expenses, net			3,186			3,432			3,432
Other assets			794			3,143			6,538

Total assets			41,005,179			164,274,510			22,417,719

Liabilities:

Due to custodian			—			—			21,968
Payables:
	Investment securities purchased		339,466			—			—
	Fund shares repurchased		18,648			224,364			2,520
	Amounts owed to affiliates		26,638			106,790			14,224
	Forward foreign currency exchange contracts		—			—			—
	Variation margin		—			15,150			—
Accrued expenses and other liabilities			27,670			23,769			22,095

Total liabilities			412,422			370,073			60,807

Net Assets:

Paid-in capital			45,832,902			191,270,514			31,689,804
Accumulated undistributed (distributions in excess of) net investment income			1,811			—			(360	)
Accumulated net realized gain (loss) on investment, futures and foreign currency related transactions			(5,355,826	)		(24,405,326	)		(8,054,929	)
Net unrealized gain (loss) on investments, futures and translation of assets and liabilities denominated in foreign currencies			113,870			(2,960,751	)		(1,277,603	)

NET ASSETS		$	$40,592,757		$	163,904,437		$	22,356,912

Total shares of beneficial interest outstanding, no par value (unlimited shares authorized)			4,349,862			14,988,789			2,567,242
Net asset value, offering and redemption price per share		$	9.33		$	10.94		$	8.71


(a)		Includes restricted cash of $110,000 and $310,000 for CORE Large Cap Growth Fund and CORE Small Cap Equity Fund, respectively, relating to initial margin requirements on futures transactions.

56 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST



CORE Small Cap			Capital			Mid Cap		International			Global			Internet
Equity Fund			Growth Fund			Value Fund		Equity Fund			Income Fund			Tollkeeper Fund



	$53,111,768		$	16,421,848		$	242,985,764	$	17,540,655		$	15,087,164		$	4,258,794
	392,799			59,081			50,672		72,395			33,359			44,882
	96,488			—			—		14,638			42,280			—
	37,988			14,376			265,121		38,331			323,052			—
	773,608			69,431			2,825,297		6,401			49,325			8,207
	—			—			—		127,880			261,785			—
	—			—			—		101,868			61,723			—
	36,583			13,775			—		52,911			26,986			—
	3,432			4,089			4,338		5,478			3,186			—
	986			118			4,229		355			325			125

	54,453,652			16,582,718			246,135,421		17,960,912			15,889,185			4,312,008



	—			—			—		—			—			—
	—			278,878			2,390,813		2,610			164,955			—
	22,539			5,002			7,715		19,310			2,812			8,885
	34,218			11,208			162,718		15,490			12,713			15,591
	—			—			—		112,591			155,815			—
	2,350			—			—		—			—			—
	29,968			22,069			53,669		37,655			29,567			19,235

	89,075			317,157			2,614,915		187,656			365,862			43,711



	52,460,652			19,213,952			225,408,652		25,640,162			15,837,418			8,562,137
	5,302			—			—		(21,181	)		77,737			—
	(1,912,354	)		(1,193,035	)		428,422		(6,385,228	)		(152,710	)		(4,207,194	)
	3,810,977			(1,755,356	)		17,683,432		(1,460,497	)		(239,122	)		(86,646	)

	$54,364,577		$	16,265,561		$	243,520,506	$	17,773,256		$	15,523,323		$	4,268,297

	5,015,545			1,581,809			21,574,069		1,976,020			1,577,268			947,015
	$10.84		$	10.28		$	11.29	$	8.99		$	9.84		$	4.51

The accompanying notes are an integral part of these financial statements. 57

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Statements of Operations

For the Year Ended December 31, 2001


		Growth and			CORE U.S.			CORE Large Cap
		Income Fund			Equity Fund			Growth Fund

Investment income^(a):

Dividends		$	504,809		$	1,875,748		$	158,964
Interest			72,212			68,181			14,116

Total income			577,021			1,943,929			173,080

Expenses:

Management fees			290,046			1,055,436			165,831
Custodian fees			63,461			79,681			65,916
Transfer agent fees			26,239			26,388			26,158
Professional fees			24,483			24,483			24,483
Printing fees			25,264			12,247			12,247
Deferred organization expenses			4,143			4,143			4,143
Trustee fees			9,524			9,524			9,524
Other			10,405			22,914			20,266

Total expenses			453,565			1,234,816			328,568

Less — expense reductions			(66,837	)		(15,642	)		(115,357	)

Net expenses			386,728			1,219,174			213,211

NET INVESTMENT INCOME (LOSS)			190,293			724,755			(40,131	)

Realized and unrealized gain (loss) on investment, futures and foreign currency transactions:

Net realized gain (loss) from:
	Investment transactions		(4,069,491	)		(20,827,540	)		(7,874,406	)
	Futures transactions		—			(715,511	)		(38,997	)
	Foreign currency related transactions		—			—			—
Net change in unrealized gain (loss) on:
	Investments		38,097			1,689,819			2,061,027
	Futures		—			7,636			(9,871	)
	Translation of assets and liabilities denominated in foreign currencies		—			—			—

Net realized and unrealized gain (loss) on investment, futures and foreign currency transactions			(4,031,394	)		(19,845,596	)		(5,862,247	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		$	(3,841,101	)	$	(19,120,841	)	$	(5,902,378	)


(a)		For the Growth and Income, CORE U.S. Equity, CORE Large Cap Growth, CORE Small Cap Equity, Capital Growth, Mid Cap Value, International Equity and Global Income Funds, foreign taxes withheld on dividends and interest were $2,279, $7,658, $405, $395, $798, $8,379, $48,890 and $1,222, respectively.

58 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST


CORE Small Cap			Capital			Mid Cap			International			Global			Internet
Equity Fund			Growth Fund			Value Fund			Equity Fund			Income Fund			Tollkeeper Fund



$	544,550		$	152,354		$	3,339,931		$	373,812		$	—		$	450
	32,764			18,631			364,365			53,921			530,711			9,644

	577,314			170,985			3,704,296			427,733			530,711			10,094



	345,170			111,481			1,366,161			234,413			114,916			47,697
	129,441			58,364			84,716			157,471			109,219			43,195
	26,288			26,263			26,313			26,289			26,301			26,255
	24,483			24,108			25,483			25,856			25,606			27,478
	12,247			12,456			79,264			12,456			12,247			11,322
	4,143			4,143			3,950			4,142			4,143			—
	9,524			9,524			9,524			9,524			9,524			9,524
	9,896			4,344			6,082			10,485			3,982			10

	561,192			250,683			1,601,493			480,636			305,938			165,481

	(100,965	)		(102,041	)		(16,686	)		(164,180	)		(159,101	)		(105,860	)

	460,227			148,642			1,584,807			316,456			146,837			59,621

	117,087			22,343			2,119,489			111,277			383,874			(49,527	)



	(1,050,235	)		(1,116,432	)		7,597,234			(5,930,818	)		273,836			(3,692,264	)
	(121,187	)		—			—			(129,857	)		(80,075	)		—
	—			—			—			154,644			143,313			—
	3,104,628			(1,402,370	)		9,147,130			(308,187	)		(411,646	)		1,671,108
	(60,045	)		—			—			80,450			15,889			—
	—			—			—			(183,364	)		217,441			—

	1,873,161			(2,518,802	)		16,744,364			(6,317,132	)		158,758			(2,021,156	)

$	1,990,248		$	(2,496,459	)	$	18,863,853		$	(6,205,855	)	$	542,632		$	(2,070,683	)

The accompanying notes are an integral part of these financial statements. 59

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Statements of Changes in Net Assets

For the Year Ended December 31, 2001



	Growth and			CORE U.S.			CORE Large Cap
	Income Fund			Equity Fund			Growth Fund

From operations:

Net investment income (loss)	$	190,293		$	724,755		$	(40,131	)
Net realized gain (loss) on investment, futures and foreign currency related transactions		(4,069,491	)		(21,543,051	)		(7,913,403	)
Net change in unrealized gain (loss) on investments, futures and translation of assets and liabilities denominated in foreign currencies		38,097			1,697,455			2,051,156

Net increase (decrease) in net assets resulting from operations		(3,841,101	)		(19,120,841	)		(5,902,378	)

Distributions to shareholders:

From net investment income		(192,388	)		(737,656	)		(6,628	)
From net realized gain on investment, futures and foreign currency related transactions		—			—			(9,432	)
From tax return of capital		—			—			—

Total distributions to shareholders		(192,388	)		(737,656	)		(16,060	)

From share transactions:

Proceeds from sales of shares		13,288,998			55,342,887			6,311,119
Reinvestment of dividends and distributions		192,388			737,656			16,060
Cost of shares repurchased		(5,971,356	)		(11,620,753	)		(3,967,355	)

Net increase (decrease) in net assets resulting from share transactions		7,510,030			44,459,790			2,359,824

TOTAL INCREASE (DECREASE)		3,476,541			24,601,293			(3,558,614	)

Net assets:

Beginning of year		37,116,216			139,303,144			25,915,526

End of year	$	40,592,757		$	163,904,437		$	22,356,912

Accumulated undistributed (distributions in excess of) net investment income	$	1,811		$	—		$	(360	)

Summary of share transactions:

Shares sold		1,391,584			4,820,468			654,386
Shares issued on reinvestment of dividends and distributions		20,665			67,487			1,829
Shares repurchased		(650,969	)		(1,062,345	)		(444,215	)

TOTAL		761,280			3,825,610			212,000

60 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST


CORE Small Cap			Capital			Mid Cap			International			Global			Internet
Equity Fund			Growth Fund			Value Fund			Equity Fund			Income Fund			Tollkeeper Fund



$	117,087		$	22,343		$	2,119,489		$	111,277		$	383,874		$	(49,527	)
	(1,171,422	)		(1,116,432	)		7,597,234			(5,906,031	)		337,074			(3,692,264	)
	3,044,583			(1,402,370	)		9,147,130			(411,101	)		(178,316	)		1,671,108

	1,990,248			(2,496,459	)		18,863,853			(6,205,855	)		542,632			(2,070,683	)



	(76,934	)		(26,444	)		(2,112,836	)		(175,062	)		(572,674	)		—
	—			(53,974	)		(10,913,278	)		(60,696	)		—			—
	(74,291	)		—			—			(82,175	)		—			—

	(151,225	)		(80,418	)		(13,026,114	)		(317,933	)		(572,674	)		—



	18,234,164			9,588,008			161,692,684			7,631,321			6,142,309			5,086,020
	151,225			80,418			13,026,114			317,933			572,674			—
	(6,421,071	)		(7,600,880	)		(38,692,901	)		(12,913,245	)		(1,092,103	)		(4,200,864	)

	11,964,318			2,067,546			136,025,897			(4,963,991	)		5,622,880			885,156

	13,803,341			(509,331	)		141,863,636			(11,487,779	)		5,592,838			(1,185,527	)



	40,561,236			16,774,892			101,656,870			29,261,035			9,930,485			5,453,824

$	54,364,577		$	16,265,561		$	243,520,506		$	17,773,256		$	15,523,323		$	4,268,297

$	5,302		$	—		$	—		$	(21,181	)	$	77,737		$	—



	1,763,231			888,325			14,502,257			755,369			609,720			1,040,976
	14,160			7,787			1,175,647			35,965			58,021			—
	(663,729	)		(702,136	)		(3,633,018	)		(1,299,233	)		(108,333	)		(896,133	)

	1,113,662			193,976			12,044,886			(507,899	)		559,408			144,843

The accompanying notes are an integral part of these financial statements. 61

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Statements of Changes in Net Assets

For the period ended December 31, 2000


	Growth and			CORE U.S.			CORE Large Cap
	Income Fund			Equity Fund			Growth Fund
From operations:

Net investment income (loss)		$132,085		$	866,667		$	159,880
Net realized gain (loss) on investment, futures and foreign currency related transactions		(261,627	)		(2,717,085	)		2,091,316
Net change in unrealized gain (loss) on investments, futures and translation of assets and liabilities denominated in foreign currencies		(1,530,179	)		(10,145,803	)		(9,400,818	)

Net increase (decrease) in net assets resulting from operations		(1,659,721	)		(11,996,221	)		(7,149,622	)

Distributions to shareholders:

From net investment income		(132,311	)		(865,509	)		(159,108	)
In excess of net investment income		(3,487	)		—			—
From net realized gain on investment, futures and foreign currency related transactions		—			(772,737	)		(2,390,860	)

Total distributions to shareholders		(135,798	)		(1,638,246	)		(2,549,968	)

From share transactions:

Proceeds from sales of shares		17,902,382			117,394,150			18,370,620
Reinvestment of dividends and distributions		135,798			1,638,246			2,549,968
Cost of shares repurchased		(5,115,477	)		(18,153,265	)		(9,654,397	)

Net increase in net assets resulting from share transactions		12,922,703			100,879,131			11,266,191

TOTAL INCREASE		11,127,184			87,244,664			1,566,601

Net assets:

Beginning of period		25,989,032			52,058,480			24,348,925

End of period		$37,116,216		$	139,303,144		$	25,915,526

Accumulated undistributed (distributions in excess of) net investment income		$1,743		$	6,614		$	6,604

Summary of share transactions:

Shares sold		1,660,466			8,623,035			1,188,982
Shares issued on reinvestment of dividends and distributions		13,552			135,954			240,790
Shares repurchased		(472,608	)		(1,319,313	)		(615,200	)

TOTAL		1,201,410			7,439,676			814,572


(a)		Commenced operations on April 28, 2000.

62 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST


CORE Small Cap			Capital			Mid Cap			International			Global			Internet
Equity Fund			Growth Fund			Value Fund			Equity Fund			Income Fund			Tollkeeper Fund^(a)



$	166,722		$	18,348		$	708,095		$	96,961		$	337,854		$	(20,748	)
	708,025			908,998			6,465,002			1,039,783			415,002			(514,930	)
	(751,988	)		(2,291,698	)		8,884,881			(5,270,656	)		(575	)		(1,757,754	)

	122,759			(1,364,352	)		16,057,978			(4,133,912	)		752,281			(2,293,432	)



	(163,417	)		(18,348	)		(694,182	)		—			(337,854	)		—
	—			(324	)		—			—			(551,404	)		—
	(1,165,883	)		(998,502	)		(2,242,158	)		(1,731,688	)		—			—

	(1,329,300	)		(1,017,174	)		(2,936,340	)		(1,731,688	)		(889,258	)		—



	36,030,227			13,893,398			74,750,928			16,742,243			3,768,756			8,132,879
	1,329,300			1,017,174			2,936,340			1,731,688			889,252			—
	(9,079,504	)		(6,204,400	)		(11,034,361	)		(3,506,485	)		(1,514,470	)		(385,623	)

	28,280,023			8,706,172			66,652,907			14,967,446			3,143,538			7,747,256

	27,073,482			6,324,646			79,774,545			9,101,846			3,006,561			5,453,824



	13,487,754			10,450,246			21,882,325			20,159,189			6,923,924			—

$	40,561,236		$	16,774,892		$	101,656,870		$	29,261,035		$	9,930,485		$	5,453,824

$	8,323		$	—		$	19,417		$	(153,516	)	$	(64,775	)	$	—



	3,344,425			924,852			7,892,539			1,212,761			370,375			842,934
	138,038			86,942			289,859			153,382			91,393			—
	(852,757	)		(369,914	)		(1,252,284	)		(275,266	)		(148,165	)		(40,762	)

	2,629,706			641,880			6,930,114			1,090,877			313,603			802,172

The accompanying notes are an integral part of these financial statements. 63

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period



			Income (loss) from
			investment operations									Distributions to shareholders


						Net
	Net asset		Net			realized									In excess			From			From
	value,		investment			and			Total from			From net			of net			tax			net
	beginning		income			unrealized			investment			investment			investment			return of			realized			Total
	of period		(loss)			gain (loss)			operations			income			income			capital			gain			distributions



Growth and Income Fund
For the year ended December 31, 2001	$	10.34	$	0.05	^(c)	$	(1.02	)	$	(0.97	)	$	(0.04	)	$	—		$	—		$	—		$	(0.04	)
For the year ended December 31, 2000		10.89		0.04	^(c)		(0.55	)		(0.51	)		(0.04	)		—			—			—			(0.04	)
For the year ended December 31, 1999		10.45		0.12			0.44			0.56			(0.12	)		—			—			—			(0.12	)
For the period ended December 31, 1998 (commenced January 12)		10.00		0.09			0.45			0.54			(0.09	)		—			—			—			(0.09	)

CORE U.S. Equity Fund
For the year ended December 31, 2001		12.48		0.05	^(c)		(1.54	)		(1.49	)		(0.05	)		—			—			—			(0.05	)
For the year ended December 31, 2000		13.98		0.11	^(c)		(1.46	)		(1.35	)		(0.08	)		—			—			(0.07	)		(0.15	)
For the year ended December 31, 1999		11.42		0.05			2.72			2.77			(0.05	)		—			—			(0.16	)		(0.21	)
For the period ended December 31, 1998 (commenced February 13)		10.00		0.05			1.42			1.47			(0.05	)		—			—			—			(0.05	)

CORE Large Cap Growth Fund
For the year ended December 31, 2001		11.00		(0.02	) ^(c)		(2.27	)		(2.29	)		0.00	^(d)		—			—			0.00	^(d)		0.00	^(d)
For the year ended December 31, 2000		15.80		0.08	^(c)		(3.67	)		(3.59	)		(0.08	)		—			—			(1.13	)		(1.21	)
For the year ended December 31, 1999		11.68		0.02			4.12			4.14			(0.02	)		—			—			—			(0.02	)
For the period ended December 31, 1998 (commenced February 13)		10.00		0.02			1.68			1.70			(0.02	)		—			—			—			(0.02	)

CORE Small Cap Equity Fund
For the year ended December 31, 2001		10.40		0.03	^(c)		0.44			0.47			(0.02	)		—			(0.01	)		—			(0.03	)
For the year ended December 31, 2000		10.60		0.06	^(c)		0.09			0.15			(0.04	)		—			—			(0.31	)		(0.35	)
For the year ended December 31, 1999		9.04		0.02			1.56			1.58			(0.02	)		—			—			—			(0.02	)
For the period ended December 31, 1998 (commenced February 13)		10.00		0.02			(0.95	)		(0.93	)		(0.02	)		(0.01	)		—			—			(0.03	)

Capital Growth Fund
For the year ended December 31, 2001		12.09		0.02	^(c)		(1.78	)		(1.76	)		(0.02	)		—			—			(0.03	)		(0.05	)
For the year ended December 31, 2000		14.01		0.01	^(c)		(1.16	)		(1.15	)		(0.01	)		—			—			(0.76	)		(0.77	)
For the year ended December 31, 1999		11.31		0.01			3.04			3.05			(0.01	)		—			—			(0.34	)		(0.35	)
For the period ended December 31, 1998 (commenced April 30)		10.00		0.03			1.31			1.34			(0.03	)		—			—			—			(0.03	)

Mid Cap Value Fund
For the year ended December 31, 2001		10.67		0.14	^(c)		1.14			1.28			(0.11	)		—			—			(0.55	)		(0.66	)
For the year ended December 31, 2000		8.42		0.15	^(c)		2.45			2.60			(0.08	)		—			—			(0.27	)		(0.35	)
For the year ended December 31, 1999		8.57		0.07			(0.15	)		(0.08	)		(0.07	)		—			—			—			(0.07	)
For the period ended December 31, 1998 (commenced May 1)		10.00		0.07			(1.43	)		(1.36	)		(0.07	)		—			—			—			(0.07	)

International Equity Fund
For the year ended December 31, 2001		11.78		0.05	^(c)		(2.68	)		(2.63	)		(0.09	)		—			(0.04	)		(0.03	)		(0.16	)
For the year ended December 31, 2000		14.47		0.05	^(c)		(1.99	)		(1.94	)		—			—			—			(0.75	)		(0.75	)
For the year ended December 31, 1999		11.91		0.07			3.66			3.73			(0.07	)		(0.13	)		—			(0.97	)		(1.17	)
For the period ended December 31, 1998 (commenced January 12)		10.00		0.02			1.98			2.00			—			—			—			(0.09	)		(0.09	)

Global Income Fund
For the year ended December 31, 2001		9.75		0.30	^(c)(e)		0.17	^(e)		0.47			(0.38	)		—			—			—			(0.38	)
For the year ended December 31, 2000		9.83		0.41	^(c)		0.48			0.89			(0.41	)		(0.56	)		—			—			(0.97	)
For the year ended December 31, 1999		10.32		0.39			(0.50	)		(0.11	)		(0.33	)		—			—			(0.05	)		(0.38	)
For the period ended December 31, 1998 (commenced January 12)		10.00		0.45			0.38			0.83			(0.40	)		—			—			(0.11	)		(0.51	)

Internet Tollkeeper Fund
For the year ended December 31, 2001		6.80		(0.06	) ^(c)		(2.23	)		(2.29	)		—			—			—			—			—
For the period ended December 31, 2000 (commenced April 28)		10.00		(0.04	) ^(c)		(3.16	)		(3.20	)		—			—			—			—			—


(a)		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 period. Total returns for periods less than one full year are not annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
(b)		Annualized.
(c)		Calculated based on the average shares outstanding methodology.
(d)		Amount is less than $(0.005) per share.
(e)		See note 2B — Securities Transactions and Investment Income under Significant Accounting Policies in the Notes to Financial Statements.

64 The accompanying notes are an integral part of these financial statements.

GOLDMAN SACHS VARIABLE INSURANCE TRUST



													Ratios assuming no
													expense reductions

										Ratio of						Ratio of
					Net		Ratio of			net						net
Net asset					assets		net			investment			Ratio of			investment
value,					at end		expenses			income (loss)			expenses			income (loss)			Portfolio
end of		Total			of period		to average			to average			to average			to average			turnover
period		return^(a)			(in 000s)		net assets			net assets			net assets			net assets			rate



$	9.33		(9.34	)%	$	40,593		1.00	%		0.49	%		1.17	%		0.32	%		48	%
	10.34		(4.69	)		37,116		0.99			0.40			1.22			0.17			68
	10.89		5.41			25,989		0.90			1.44			1.65			0.69			121
	10.45		5.47			13,814		0.90	^(b)		1.85	^(b)		2.69	^(b)		0.06	^(b)		88

	10.94		(11.94	)		163,904		0.81			0.48			0.82			0.47			72
	12.48		(9.62	)		139,303		0.85			0.87			0.87			0.85			32
	13.98		24.30			52,058		0.80			0.70			1.52			(0.02	)		70
	11.42		14.73			9,809		0.80	^(b)		0.70	^(b)		2.83	^(b)		(1.33	)^(b)		75

	8.71		(20.76	)		22,357		0.90			(0.17	)		1.39			(0.66	)		104
	11.00		(22.48	)		25,916		0.89			0.54			1.23			0.20			86
	15.80		35.42			24,349		0.80			0.15			1.85			(0.90	)		70
	11.68		16.99			8,214		0.80	^(b)		0.20	^(b)		2.87	^(b)		(1.87	)^(b)		69

	10.84		4.53			54,365		1.00			0.32			1.22			0.10			105
	10.40		1.75			40,561		0.99			0.59			1.55			0.03			91
	10.60		17.54			13,488		0.90			0.35			4.22			(2.97	)		101
	9.04		(9.30	)		4,841		0.90	^(b)		0.30	^(b)		3.92	^(b)		(2.72	)^(b)		74

	10.28		(14.46	)		16,266		1.00			0.15			1.69			(0.54	)		39
	12.09		(7.98	)		16,775		0.99			0.13			1.84			(0.72	)		37
	14.01		27.13			10,450		0.90			0.04			3.13			(2.19	)		34
	11.31		13.40			4,463		0.90	^(b)		0.42	^(b)		4.92	^(b)		(3.60	)^(b)		20

	11.29		12.05			243,521		0.93			1.27			0.94			1.26			82
	10.67		31.07			101,657		1.04			1.60			1.22			1.42			101
	8.42		(0.95	)		21,882		0.95			1.30			2.19			0.06			103
	8.57		(13.56	)		5,604		0.95	^(b)		1.74	^(b)		4.79	^(b)		(2.10	)^(b)		38

	8.99		(22.26	)		17,773		1.35			0.47			2.05			(0.23	)		76
	11.78		(13.19	)		29,261		1.34			0.37			1.99			(0.28	)		70
	14.47		31.85			20,159		1.25			0.41			2.57			(0.91	)		87
	11.91		20.07			11,206		1.25	^(b)		0.23	^(b)		2.97	^(b)		(1.49	)^(b)		76

	9.84		4.80			15,523		1.15			3.01	^(e)		2.40			1.76	^(e)		207
	9.75		9.05			9,930		1.14			4.08			2.95			2.27			186
	9.83		(1.01	)		6,924		1.05			4.23			3.51			1.77			200
	10.32		8.29			5,741		1.05	^(b)		4.59	^(b)		3.30	^(b)		2.34	^(b)		203

	4.51		(33.68	)		4,268		1.25			(1.04	)		3.47			(3.26	)		88
	6.80		(32.00	)		5,454		1.25	^(b)		(0.63	)^(b)		5.62	^(b)		(5.00	)^(b)		48

The accompanying notes are an integral part of these financial statements. 65

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Notes to Financial Statements

December 31, 2001

1. ORGANIZATION

Goldman Sachs Variable Insurance Trust (the “Trust”) is a Delaware business trust registered under the Investment Company Act of 1940, as amended (“the Act”) as an open-end, management investment company. The Trust includes Goldman Sachs Growth and Income Fund (“Growth and Income”), Goldman Sachs CORE U.S. Equity Fund (“CORE U.S. Equity”), Goldman Sachs CORE Large Cap Growth Fund (“CORE Large Cap Growth”), Goldman Sachs CORE Small Cap Equity Fund (“CORE Small Cap Equity”), Goldman Sachs Capital Growth Fund (“Capital Growth”), Goldman Sachs Mid Cap Value Fund (“Mid Cap Value”), Goldman Sachs International Equity Fund (“International Equity”), Goldman Sachs Global Income Fund (“Global Income”) and Goldman Sachs Internet Tollkeeper Fund (“Internet Tollkeeper”), collectively, “the Funds” or individually a “Fund”. Each Fund is diversified under the Act with the exception of the Global Income Fund which is a “non-diversified” Fund under the Act.

Shares of the Trust may be purchased and held by separate accounts of participating life insurance companies for the purpose of funding variable annuity contracts and variable life insurance policies. Shares of the Trust are not offered directly to the general public.

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. Actual results could differ from those estimates.

A. Investment Valuation — Investments in securities traded on a U.S. or foreign securities exchange or the NASDAQ system are valued daily at their last sale 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/ dealer-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 valuation date, or if no sale occurs, at the last bid price. Short-term debt obligations maturing in sixty days or less are valued at amortized cost. Securities for which quotations are not readily available are valued at fair value using methods approved by the Board of Trustees.

B. Securities Transactions and Investment Income — Securities transactions are recorded as of the trade date. Realized gains and losses on sales of portfolio securities are calculated using the identified-cost basis. Dividend income is recorded on the ex-dividend date, net of foreign withholding taxes where applicable. Interest income is determined on the basis of interest accrued, net of foreign withholding taxes where applicable, premium amortized and discount earned. In addition, it is the Funds’ policy to accrue for estimated capital gains taxes on foreign securities held by the Funds, which are subject to such taxes.

As required, effective January 1, 2001, the Global Income Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premiums on debt securities. Prior to January 1, 2001, the Fund did not amortize premiums on debt securities. The cumulative effect of this accounting change had no impact on total net assets or the net asset value per share of the Fund, but resulted in a reduction in the cost of securities and a corresponding increase in net unrealized gain (loss) on investments of $14,122, based on securities held by the Fund on January 1, 2001.

The effect of this change for the year ended December 31, 2001, was to decrease net investment income by $85,350 or $0.07 per share, increase net unrealized gain (loss) on investments by $54,146 or $0.04 per share, and increase net realized gains (losses) on investments by $31,204 or $0.03 per share. Additionally, the ratio of net investment income in the financial highlights was decreased from 3.67% to 3.01% and the ratio of net investment income without expense reductions was decreased from 2.42% to 1.76%. The statement of changes in net assets and financial highlights for prior periods have not been restated to reflect this change in presentation.

GOLDMAN SACHS VARIABLE INSURANCE TRUST

2. SIGNIFICANT ACCOUNTING POLICIES — continued

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 of its investment company taxable income to its shareholders. Accordingly, no federal tax provisions are required. Income distributions and capital gains distributions, if any, are declared and paid annually.

The characterization of distributions to shareholders for financial reporting purposes is determined in accordance with income tax rules. Therefore, the source of a portfolio’s distributions may be shown in the accompanying financial statements as either from 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 as well as timing differences.

D. Deferred Organization Expenses — Organization-related costs are being amortized on a straight-line basis over a period of five years (with the exception of those Funds which commenced operations after 1998, whose costs were expensed immediately).

E. Expenses — Expenses incurred by the Trust that do not specifically relate to an individual portfolio of the Trust are generally allocated to the portfolios on a straight-line or pro rata basis depending upon the nature of the expense.

F. Foreign Currency Translations — 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 upon current exchange rates; (ii) purchases and sales of foreign investments, income and expenses are converted into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions.

Net realized and unrealized gain (loss) on foreign currency transactions will represent: (i) foreign currency exchange gains and losses from the sale and holdings of foreign currencies and sale of investments (for Global Income only); (ii) gains and losses between trade date and settlement date on investment securities transactions and forward exchange contracts; and (iii) gains and losses from the difference between amounts of interest and dividend recorded and the amounts actually received.

G. Mortgage Dollar Rolls — Global Income may enter into mortgage “dollar rolls” in which the Fund sells securities in the current month for delivery and simultaneously contracts with the same counterparty to repurchase similar (same type, coupon and maturity) but not identical securities on a specified future date. For financial reporting and tax reporting purposes, the Fund treats mortgage dollar rolls as two separate transactions; one involving the purchase of a security and a separate transaction involving a sale.

H. Segregation Transactions — As set forth in the prospectus, certain Funds may enter into derivative transactions to seek to increase total return. Forward foreign currency exchange contracts, futures contracts, written options, mortgage dollar rolls, when-issued securities and forward commitments are examples of such transactions. As a result of entering into those transactions, the Funds are required to segregate liquid assets on the accounting records equal to or greater than the market value of the corresponding transactions.

I. Repurchase Agreements — Repurchase agreements involve the purchase of securities subject to the seller’s agreement to repurchase them at a mutually agreed upon date and price. 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, including accrued interest. The underlying securities for all repurchase agreements are held in safekeeping at the Funds’ custodian or designated subcustodians.

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Notes to Financial Statements (continued)

December 31, 2001

3. AGREEMENTS

Pursuant to the Investment Management Agreement (the “Agreement”), Goldman Sachs Asset Management (“GSAM”), a business unit of the Investment Management Division of Goldman, Sachs & Co. (“Goldman Sachs”), serves as the investment adviser for Growth and Income, CORE U.S. Equity, CORE Large Cap Growth, CORE Small Cap Equity, Capital Growth, Mid Cap Value and Internet Tollkeeper Funds. Goldman Sachs Asset Management International (“GSAMI”), an affiliate of Goldman Sachs, serves as the investment adviser for the International Equity and Global Income Funds. Under the Agreement, the advisers, subject to the general supervision of the Trust’s Board of Trustees, manage the Funds’ portfolios (GSAM and GSAMI are each referred to herein as the “investment adviser”). As compensation for the services rendered pursuant to the Agreement, the assumption of the expenses related thereto and administering the Funds’ business affairs, including providing facilities, the investment adviser is entitled to a fee, computed daily and payable monthly at an annual rate of the average daily net assets as follows:


Fund	Fee


Growth and Income		0.75	%

CORE U.S. Equity		0.70

CORE Large Cap Growth		0.70

CORE Small Cap Equity		0.75

Capital Growth		0.75

Mid Cap Value		0.80

International Equity		1.00

Global Income		0.90

Internet Tollkeeper		1.00

The investment advisers have voluntarily agreed to limit certain “Other Expenses” of the Funds (excluding management fees, taxes, interest, brokerage fees, litigation and indemnification and other extraordinary expenses) to the extent that such expenses exceed .25%, .20%, .20%, .25%, .25%, .25%, .35%, .25% and .25% of the average daily net assets of Growth and Income, CORE U.S. Equity, CORE Large Cap Growth, CORE Small Cap Equity, Capital Growth, Mid Cap Value, International Equity, Global Income and Internet Tollkeeper, respectively.

Goldman Sachs also serves as the transfer agent of the Funds and has voluntarily waived a portion of its transfer agent fees. Goldman Sachs may discontinue or modify this waiver in the future at its discretion. Goldman Sachs serves as the distributor of each Fund’s shares at no cost to the Funds.

GOLDMAN SACHS VARIABLE INSURANCE TRUST

3. AGREEMENTS — continued

For the year ended December 31, 2001, the investment adviser reimbursed and waived certain expenses and the Funds have entered into expense offset arrangements with the custodian resulting in a reduction in expenses as follows (amounts in thousands):


	Investment Adviser		Custody Fee		Transfer Agent
Fund	Reimbursement		Reduction		Fee Waiver		Total


Growth and Income	$	51	$	2	$	14	$	67

CORE U.S. Equity		—		2		14		16

CORE Large Cap Growth		100		1		14		115

CORE Small Cap Equity		85		2		14		101

Capital Growth		86		2		14		102

Mid Cap Value		—		3		14		17

International Equity		150		—		14		164

Global Income		144		1		14		159

Internet Tollkeeper		90		2		14		106

At December 31, 2001, the amounts owed to affiliates were as follows (in thousands):


					Over
					Reimbursement
	Management		Transfer Agent		of “Other
Fund	Fees		Fees		Expenses”		Total


Growth and Income	$	26	$	1	$	—	$	27

CORE U.S. Equity		96		1		10		107

CORE Large Cap Growth		13		1		—		14

CORE Small Cap Equity		33		1		—		34

Capital Growth		10		1		—		11

Mid Cap Value		156		1		6		163

International Equity		14		1		—		15

Global Income		12		1		—		13

Internet Tollkeeper		7		1		8		16

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Notes to Financial Statements (continued)

December 31, 2001

4. PORTFOLIO SECURITY TRANSACTIONS

Cost of purchases and proceeds of sales and maturities of long-term securities for the year ended December 31, 2001, were as follows:


					Sales and		Sales and Maturities
	Purchases of		Purchases		Maturities of		(excluding
	U.S. Government		(excluding U.S.		U.S. Government		U.S. Government
	and agency		Government and		and agency		and agency
Fund	obligations		agency obligations)		obligations		obligations)


Growth and Income	$	—	$	24,861,105	$	—	$	17,762,345

CORE U.S. Equity		—		149,015,667		—		107,032,854

CORE Large Cap Growth		—		27,381,822		—		24,258,044

CORE Small Cap Equity		—		60,062,167		—		47,526,965

Capital Growth		—		7,694,921		—		5,624,051

Mid Cap Value		—		258,372,849		—		132,897,403

International Equity		—		16,689,695		—		21,552,391

Global Income		6,072,556		23,744,784		3,043,276		21,707,761

Internet Tollkeeper		—		5,096,218		—		3,966,895

Forward Foreign Currency Exchange Contracts — Growth and Income, Capital Growth, Mid Cap Value, International Equity and Global Income 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. International Equity and Global Income may also purchase and sell forward contracts to seek to increase total return. All commitments are “marked-to-market” daily at the applicable translation rates. The Funds record realized gains or losses at the time the forward contract is offset by entry into a closing transaction or extinguished by delivery of the currency. Risks may arise upon entering into 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.

GOLDMAN SACHS VARIABLE INSURANCE TRUST

4. PORTFOLIO SECURITY TRANSACTIONS — continued

At December 31, 2001, the International Equity Fund had outstanding forward foreign currency exchange contracts as follows:


		Value on
Open Foreign Currency	Expiration	Settlement		Current		Unrealized		Unrealized
Purchase Contracts	Date	Date		Value		Gain		Loss


Australian Dollar	1/17/2002	$	104,000	$	102,026	$	—	$	1,974
	1/25/2002		360,199		357,553		—		2,646
Danish Krone	1/24/2002		210,016		210,232		216		—
Euro Currency	1/10/2002		1,258,798		1,264,346		5,548		—
	1/17/2002		720,629		714,039		—		6,590
Hong Kong Dollar	3/11/2002		148,050		148,044		—		6
	5/7/2002		392,190		392,101		—		89
Japanese Yen	1/17/2002		615,963		573,058		—		42,905
	1/18/2002		469,897		450,983		—		18,914
Norwegian Krone	2/27/2002		77,516		77,863		347		—
Pound Sterling	1/17/2002		209,639		209,124		—		515
	1/25/2002		851,062		865,237		14,175		—
Singapore Dollar	1/17/2002		210,000		208,107		—		1,893
	1/24/2002		91,126		90,114		—		1,012
Swedish Krona	1/11/2002		257,963		260,067		2,104		—
Swiss Franc	2/14/2002		210,397		210,111		—		286

TOTAL OPEN FOREIGN CURRENCY PURCHASE CONTRACTS		$	6,187,445	$	6,133,005	$	22,390	$	76,830


		Value on
Open Foreign Currency	Expiration	Settlement		Current		Unrealized		Unrealized
Sales Contracts	Date	Date		Value		Gain		Loss


Australian Dollar	1/17/2002	$	103,237	$	102,026	$	1,211	$	—
	1/25/2002		58,614		58,706		—		92
Euro Currency	1/10/2002		711,297		710,824		473		—
	1/17/2002		717,058		712,472		4,586		—
Hong Kong Dollar	3/11/2002		205,981		205,971		10		—
	5/7/2002		392,104		392,100		4		—
Japanese Yen	1/7/2002		40,472		40,592		—		120
	1/17/2002		615,500		569,770		45,730		—
	1/18/2002		456,070		431,370		24,700		—
Pound Sterling	1/17/2002		203,506		209,125		—		5,619
	1/25/2002		698,761		702,438		—		3,677
Singapore Dollar	1/17/2002		210,020		208,107		1,913		—
Swedish Krona	1/11/2002		232,095		235,279		—		3,184
Swiss Franc	2/14/2002		557,427		555,226		2,201		—

TOTAL OPEN FOREIGN CURRENCY SALE CONTRACTS		$	5,202,142	$	5,134,006	$	80,828	$	12,692

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Notes to Financial Statements (continued)

December 31, 2001

4. PORTFOLIO SECURITY TRANSACTIONS — continued


		Purchase		Sale
Open Foreign Currency	Expiration	Current		Current		Unrealized		Unrealized
Cross Contracts (Purchase/Sale)	Date	Value		Value		Gain		Loss


Euro Currency/ Norwegian Krone	1/17/2002	$	202,759	$	202,162	$	—	$	597
Euro Currency/ Pound Sterling	1/17/2002		406,194		402,923		—		3,271
Euro Currency/ Swedish Krona	1/17/2002		350,482		347,058		—		3,424
Euro Currency/ Swiss Franc	1/17/2002		394,932		396,856		1,924		—
Japanese Yen/ Pound Sterling	1/17/2002		424,635		408,998		—		15,637
Norwegian Krone/ Euro Currency	1/17/2002		205,243		205,503		260		—
Pound Sterling/ Euro Currency	1/17/2002		408,883		412,389		3,506		—
Pound Sterling/ Japanese Yen	1/17/2002		406,401		423,569		17,168		—
Swedish Krona/ Euro Currency	1/17/2002		348,259		350,063		1,804		—
Swiss Franc/ Euro Currency	1/17/2002		394,931		394,791		—		140

TOTAL OPEN FOREIGN CURRENCY CROSS CONTRACTS		$	3,542,719	$	3,544,312	$	24,662	$	23,069

At December 31, 2001, the Global Income Fund had outstanding forward foreign currency exchange contracts as follows:


		Value on
Open Foreign Currency	Expiration	Settlement		Current		Unrealized		Unrealized
Purchase Contracts	Date	Date		Value		Gain		Loss


Australian Dollar	1/17/2002	$	286,748	$	286,031	$	—	$	717
Canadian Dollar	1/17/2002		559,255		560,006		751		—
Euro Currency	1/10/2002		133,675		134,241		566		—
	1/17/2002		1,261,378		1,250,387		—		10,991
Japanese Yen	1/17/2002		833,660		779,695		—		53,965
	1/18/2002		39,137		37,604		—		1,533
Pound Sterling	1/17/2002		280,977		280,285		—		692
Singapore Dollar	1/17/2002		427,000		422,981		—		4,019
Swedish Krona	1/11/2002		198,709		201,672		2,963		—

TOTAL OPEN FOREIGN CURRENCY PURCHASE CONTRACTS		$	4,020,539	$	3,952,902	$	4,280	$	71,917

GOLDMAN SACHS VARIABLE INSURANCE TRUST

4. PORTFOLIO SECURITY TRANSACTIONS — continued


		Value on
Open Foreign Currency	Expiration	Settlement		Current		Unrealized		Unrealized
Sales Contracts	Date	Date		Value		Gain		Loss


Australian Dollar	1/17/2002	$	289,433	$	286,031	$	3,402	$	—
Canadian Dollar	1/17/2002		562,000		560,006		1,994		—
	3/14/2002		222,228		218,748		3,480		—
Danish Krone	1/24/2002		212,541		212,760		—		219
Euro Currency	1/10/2002		4,985,877		5,019,154		—		33,277
	1/17/2002		832,172		826,140		6,032		—
Japanese Yen	1/17/2002		1,341,639		1,268,529		73,110		—
	1/18/2002		1,983,234		1,877,220		106,014		—
Pound Sterling	1/17/2002		272,752		280,285		—		7,533
	1/25/2002		1,057,253		1,057,153		100		—
Swedish Krona	1/11/2002		365,703		368,352		—		2,649

TOTAL OPEN FOREIGN CURRENCY SALE CONTRACTS		$	12,124,832	$	11,974,378	$	194,132	$	43,678


		Purchase		Sale
Open Foreign Currency	Expiration	Current		Current		Unrealized		Unrealized
Cross Contracts (Purchase/Sale)	Date	Value		Value		Gain		Loss


Canadian Dollar/ Pound Sterling	1/17/2002	$	282,274	$	278,615	$	—	$	3,659
Euro Currency/ Norwegian Krone	1/17/2002		275,681		274,869		—		812
Euro Currency/ Pound Sterling	1/17/2002		550,945		546,487		—		4,458
Euro Currency/ Swedish Krona	1/17/2002		573,218		567,733		—		5,485
Euro Currency/ Swiss Franc	1/17/2002		816,861		821,354		4,493		—
Japanese Yen/ New Zealand Dollar	1/17/2002		588,970		578,810		—		10,160
Japanese Yen/ Pound Sterling	1/17/2002		578,718		566,413		—		12,305
New Zealand Dollar/ Japanese Yen	1/17/2002		568,171		591,108		22,937		—
Norwegian Krone/ Euro Currency	1/17/2002		279,059		279,413		354		—
Norwegian Krone/ Swiss Franc	1/17/2002		593,227		594,605		1,378		—
Pound Sterling/ Canadian Dollar	1/17/2002		285,518		286,518		1,000		—
Pound Sterling/ Euro Currency	1/17/2002		555,375		560,128		4,753		—
Pound Sterling/ Japanese Yen	1/17/2002		549,191		572,390		23,199		—
Swedish Krona/ Euro Currency	1/17/2002		859,875		865,134		5,259		—
Swiss Franc/ Euro Currency	1/17/2002		821,940		820,560		—		1,380
Swiss Franc/ Norwegian Krone	1/17/2002		589,121		587,160		—		1,961

TOTAL OPEN FOREIGN CURRENCY CROSS CONTRACTS		$	8,768,144	$	8,791,297	$	63,373	$	40,220

The contractual amounts of forward foreign currency exchange contracts do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. At December 31, 2001, the International Equity and Global Income Funds had sufficient cash and/or securities to cover any commitments under these contracts.

Option Accounting Principles — When the Funds write 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 Funds enter into a closing purchase transaction, the Funds realize a gain or loss without regard to any unrealized gain or loss on the

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Notes to Financial Statements (continued)

December 31, 2001

4. PORTFOLIO SECURITY TRANSACTIONS — continued

underlying security, and the liability related to such option is extinguished. When a written call option is exercised, the Funds realize a gain or loss from the sale of the underlying security, and the proceeds of the sale are increased by the premium originally received. When a written put option is exercised, the amount of the premium originally received will reduce the cost of the security which the Funds purchase 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 Funds, the premium paid is recorded as an investment and subsequently marked-to-market to reflect the current market value of the option. If an option which the Funds have purchased expires on the stipulated expiration date, the Funds will realize a loss in the amount of the cost of the option. If the Funds enter into a closing sale transaction, the Funds will realize a gain or loss, depending on whether the sale proceeds for the closing sale transaction are greater or less than the cost of the option. If the Funds exercise a purchased put option, the Funds 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 Funds exercise a purchased call option, the cost of the security which the Funds purchase upon exercise will be increased by the premium originally paid. As of December 31, 2001, the Funds had no open written or purchased option contracts.

Futures Contracts — The Funds may enter into futures transactions to hedge against changes in interest rates, securities prices, currency exchange rates or to seek to increase total return.

Upon entering into a futures contract, the Funds are required to deposit with a broker 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 Funds daily, dependent on the daily fluctuations in the value of the contracts, and are recorded for financial reporting purposes as unrealized gains or losses. When contracts are closed, the Funds realize a gain or loss which is reported in the Statements of Operations.

The use of futures contracts involve, to varying degrees, elements of market and counterparty risk which may exceed the amounts recognized in the Statements of Assets and Liabilities. Changes in the value of the futures contract may not directly correlate with changes in the value of the underlying securities. This risk may decrease the effectiveness of the Funds’ strategies and potentially result in a loss.

At December 31, 2001, the following futures contracts were open as follows:


		Number of
		Contracts			Settlement	Market		Unrealized
Fund	Type	Long (Short)			Month	Value		Gain (Loss)


CORE U.S. Equity	S & P 500 Index		6		March 2002	$	1,723,800	$	7,636

CORE Small Cap Equity	Russell 2000		1		March 2002	$	244,650	$	1,695

International Equity	Eurex Deutschland 50		21		March 2002	$	716,322	$	34,583
	Tokyo Stock Exchange		3		March 2002		234,028		4,007

						$	950,350	$	38,590

Global Income	10 Year Canadian Gov’t Bonds		6		March 2002	$	398,851	$	(1,190	)
	2 Year U.S. Treasury Note		3		March 2002		626,953		(1,954	)
	10 Year U.K. Note		(3	)	March 2002		492,053		12,520

						$	1,517,857	$	9,376

GOLDMAN SACHS VARIABLE INSURANCE TRUST

4. PORTFOLIO SECURITY TRANSACTIONS — continued

For the year ended December 31, 2001, Goldman Sachs earned brokerage commissions from portfolio transactions including futures executed on behalf of the Funds in the following amounts:


	Brokerage
Fund	Commissions


Growth and Income	$	2,442

CORE U.S. Equity		2,240

CORE Large Cap Growth		505

CORE Small Cap Equity		750

Mid Cap Value		26,636

Global Income		1,155

5. JOINT REPURCHASE AGREEMENT ACCOUNT

The Funds, together with other registered investment companies having management agreements with GSAM or their affiliates, transfer uninvested cash into joint accounts, the daily aggregate balance of which is invested in one or more repurchase agreements.

At December 31, 2001, the Growth and Income, CORE U.S. Equity, Capital Growth, Mid Cap Value and Internet Tollkeeper Funds had undivided interests in the repurchase agreements in the following joint account which equaled $2,300,000, $1,000,000, $400,000, $9,800,000, and $100,000, respectively, in principal amount. At December 31, 2001, the following repurchase agreements held in this joint account were fully collateralized by Federal Agency obligations.


	Principal		Interest			Maturity	Amortized		Maturity
Repurchase Agreements	Amount		Rate			Date	Cost		Value


Banc of America Securities LLC	$	500,000,000		1.85	%	01/02/2002	$	500,000,000	$	500,051,389

Barclays Capital, Inc.		500,000,000		1.80		01/02/2002		500,000,000		500,050,000

Bear Stearns Companies, Inc.		500,000,000		1.82		01/02/2002		500,000,000		500,050,556

JPM Securities, Inc.		750,000,000		1.82		01/02/2002		750,000,000		750,075,833

Credit Suisse First Boston Corp.		250,000,000		1.80		01/02/2002		250,000,000		250,025,000

Greenwich Capital Markets		700,000,000		1.80		01/02/2002		700,000,000		700,070,000

Lehman Brothers		1,000,000,000		1.75		01/02/2002		1,000,000,000		1,000,097,222

Salomon Smith Barney Holdings, Inc.		1,000,000,000		1.80		01/02/2002		1,000,000,000		1,000,100,000

UBS Warburg LLC		250,000,000		1.30		01/02/2002		250,000,000		250,018,056

UBS Warburg LLC		500,000,000		1.72		01/02/2002		500,000,000		500,047,778

UBS Warburg LLC		1,443,300,000		1.80		01/02/2002		1,443,300,000		1,443,444,330





TOTAL JOINT REPURCHASE AGREEMENT ACCOUNT							$	7,393,300,000	$	7,394,030,164

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Notes to Financial Statements (continued)

December 31, 2001

6. LINE OF CREDIT FACILITY

The Funds participate in a $350,000,000 committed, unsecured revolving line of credit facility. Under the most restrictive arrangement, each Fund must own securities having a market value in excess of 400% of the total bank borrowings. This facility is to be used solely for temporary or emergency purposes. The interest rate on borrowings is based on the federal funds rate. The committed facility also requires a fee to be paid by the Funds based on the amount of the commitment which has not been utilized. During the year ended December 31, 2001, the Funds did not have any borrowings under this facility.

7. CERTAIN RECLASSIFICATIONS

In accordance with AICPA Statement of Position 93-2, certain reclassifications have been recorded to the Funds’ accounts. These reclassifications have no impact on the net asset value of the Funds and are designed to present the Funds’ capital accounts on a tax basis. Reclassifications result primarily from the difference in the tax treatment of net operating losses, foreign currency transactions and organization costs.


							Accumulated
				Accumulated			Undistributed
				Net Realized			Net Investment
Fund	Paid-in-Capital			Gain (Loss)			Income


Growth and Income	$	(4,143	)	$	1,980		$	2,163

CORE US Equity		(6,288	)		1			6,287

CORE Large Cap Growth		(39,889	)		94			39,795

CORE Small Cap Equity		(78,436	)		47,319			31,117

Capital Growth		(4,159	)		58			4,101

Mid Cap Value		(3,950	)		30,020			(26,070	)

International Equity		(65,476	)		(212,819	)		278,295

Global Income		(4,143	)		(273,023	)		331,312

Internet Tollkeeper		(49,527	)		—			49,527

GOLDMAN SACHS VARIABLE INSURANCE TRUST

8. OTHER MATTERS

As of December 31, 2001, Goldman Sachs was the beneficial owner of 39% of the outstanding shares of the Global Income Fund.

9. SUBSEQUENT EVENTS

On January 30, 2002, the Board of Trustees of the Trust approved resolutions which authorized the liquidation of the CORE Large Cap Growth, Global Income and Internet Tollkeeper funds. The timing of such liquidations has not yet been determined.

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Notes to Financial Statements (continued)

December 31, 2001

10. ADDITIONAL TAX INFORMATION

The tax character of distributions paid during the fiscal year ended December 31, 2001 was as follows:


		Growth and		CORE U.S.		CORE Large Cap
		Income Fund		Equity Fund		Growth Fund






Distributions paid from:
Ordinary income		$	192,388	$	737,655	$	16,060
Net long-term Capital Gains			—		—		—

	Total taxable distributions	$	192,388	$	737,655	$	16,060
Tax return of capital		$	—	$	—	$	—

As of December 31, 2001, the components of accumulated earnings (losses) on a tax basis were as follows:


		Growth and			CORE U.S.			CORE Large Cap
		Income Fund			Equity Fund			Growth Fund


Undistributed (distribution in excess of) ordinary income — net		$	1,811		$	—		$	—
Undistributed long-term capital gains			—			—			—

	Total undistributed earnings	$	1,811		$	—		$	—
Capital loss carryforward			(3,584,131	)		(21,704,749	)		(6,511,881	)
Timing differences (post October losses)			(1,207,395	)		(1,729,816	)		(1,259,478	)
Unrealized gains (losses) — net			(450,431	)		(3,931,512	)		(1,561,173	)

	Total accumulated earnings (losses) — net	$	(5,240,146	)	$	(27,366,077	)	$	(9,332,532	)
Capital loss carryforward years of expiration			2006-2009			2008-2009			2009

At December 31, 2001, the Funds’ aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes was as follows:


		Growth and			CORE U.S.			CORE Large Cap
		Income Fund			Equity Fund			Growth Fund


Tax Cost			$41,262,853		$	166,618,495		$	23,794,677

Gross unrealized gain			2,098,253			9,487,175			926,885
Gross unrealized loss			(2,548,684	)		(13,418,687	)		(2,488,058	)

	Net unrealized security gain (loss)	$	(450,431	)	$	(3,931,512	)	$	(1,561,173	)

The difference between book-basis and tax-basis unrealized gains (losses) is attributable primarily to wash sales.

GOLDMAN SACHS VARIABLE INSURANCE TRUST


CORE Small Cap		Capital		Mid Cap		International		Global		Internet
Equity Fund		Growth Fund		Value Fund		Equity Fund		Income Fund		Tollkeeper Fund


$	76,934	$	26,502	$	11,870,004	$	190,595	$	572,674	$	—
	—		53,916		1,156,110		45,163		—		—

$	76,934	$	80,418	$	13,026,114	$	235,758	$	572,674	$	—
$	74,291	$	—	$	—	$	82,175	$	—	$	—


CORE Small Cap			Capital			Mid Cap		International			Global			Internet
Equity Fund			Growth Fund			Value Fund		Equity Fund			Income Fund			Tollkeeper Fund


$	2,352		$	—		$	458,221	$	(5,035	)	$	187,943		$	—
	—			—			679,018		—			—			—

$	2,352		$	—		$	1,137,239	$	(5,035	)	$	187,943		$	—
	(1,791,908	)		(836,446	)		—		(4,728,640	)		(95,983	)		(3,067,400	)
	—			(164,335	)		—		(1,226,761	)		(8,620	)		(66,678	)
	3,693,481			(1,947,609	)		16,974,614		(1,906,470	)		(397,436	)		(1,159,762	)

$	1,903,925		$	(2,948,390	)	$	18,111,853	$	(7,866,906	)	$	(314,096	)	$	(4,293,840	)
	2009			2009			—		2009			2007-2008			2008-2009


CORE Small Cap			Capital			Mid Cap			International			Global			Internet
Equity Fund			Growth Fund			Value Fund			Equity Fund			Income Fund			Tollkeeper Fund


$	49,418,287		$	18,369,457		$	226,011,150		$	19,484,517		$	15,491,263		$	5,418,556

	7,040,871			586,589			20,948,988			13,533			109,014			350,284
	(3,347,390	)		(2,534,198	)		(3,974,374	)		(1,957,395	)		(513,113	)		(1,510,046	)

$	3,693,481		$	(1,947,609	)	$	16,974,614		$	(1,943,862	)	$	(404,099	)	$	(1,159,762	)

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Report of Ernst & Young LLP, Independent Auditors

To the Shareholders and Board of Trustees
Goldman Sachs Variable Insurance Trust

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Goldman Sachs Variable Insurance Trust (comprising, respectively, Goldman Sachs Growth and Income Fund, Goldman Sachs CORE U.S. Equity Fund, Goldman Sachs CORE Large Cap Growth Fund, Goldman Sachs CORE Small Cap Equity Fund, Goldman Sachs Capital Growth Fund, Goldman Sachs Mid Cap Value Fund, Goldman Sachs International Equity Fund, Goldman Sachs Global Income Fund and Goldman Sachs Internet Tollkeeper Fund) (the “Trust”) as of December 31, 2001, the related statements of operations for the year then ended and the statements of changes in net assets and the financial highlights for each of the two periods in the period then ended. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for each of the periods ended December 31, 1998 and 1999 were audited by other auditors whose report, dated February 10, 2000, expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and 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, 2001 by correspondence with the custodian and others. 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, audited by us, referred to above present fairly, in all material respects, the financial position of each of the respective funds constituting Goldman Sachs Variable Insurance Trust at December 31, 2001, the results of their operations, the changes in their net assets, and the financial highlights for the periods indicated above, in conformity with accounting principles generally accepted in the United States.

-s- Ernst & Young

New York, New York

February 5, 2002

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Trustees and Officers (Unaudited)

Independent Trustees

Number of

Term of

Portfolios in

Position(s)

Office and

Fund Complex

Other

Name,

Held with

Length of

Principal Occupation(s)

Overseen by

Directorships

Address and Age¹

Trust

Time Served²

During Past 5 Years

Trustee³

Held by Trustee⁴

Ashok N. Bakhru
Age: 59

Chairman & Trustee

Since 1997

President, ABN Associates (July 1994-March 1996 and November 1998 to present); Executive Vice President—Finance and Administration and Chief Financial Officer, Coty Inc. (manufacturer of fragrances and cosmetics) (April 1996-November 1998); Senior Vice President of Scott Paper Company (until June 1994); Director of Arkwright Mutual Insurance Company (1984-1999);
Trustee of International House of Philadelphia (1989-Present); Member of Cornell University Council (1992-Present); Trustee of the Walnut Street Theater (1992-Present);
Trustee, Citizens Scholarship Foundation of America (since 1998); Director, Private Equity Investors—III and IV (since November 1998); and Chairman, Lenders Service Inc. (provider of mortgage lending services) (since 2000).

Chairman of the Board and Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).

None

Patrick T. Harker
Age: 43

Trustee

Since 2000

Dean and Reliance Professor of Operations and Information Management, The Wharton School, University of Pennsylvania (since February 2000); Interim and Deputy Dean, The Wharton School, University of Pennsylvania (since July 1999); Professor and Chairman of Department of Operations and Information Management, The Wharton School, University of Pennsylvania (July 1997-August 2000); UPS Transportation Professor for the Private Sector, Professor of Systems Engineering and Chairman of Systems Engineering, School of Engineering and Applied Science, University of Pennsylvania (prior thereto).

Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).

None

Mary P. McPherson
Age: 66

Trustee

Since 1997

Vice President, The Andrew W. Mellon Foundation (provider of grants for conservation, environmental and educational purposes) (since October 1997); President of Bryn Mawr College (1978-1997); Director, Smith College (since 1998); Director, Josiah Macy, Jr. Foundation (health educational programs) (since 1977); Director, Philadelphia Contributionship (insurance) (since 1985); Director Emeritus, Amherst College (1986-1998); Director, Dayton Hudson Corporation (general retailing merchandising) (1988-1997); Director, The Spencer Foundation (educational research) (since 1993); member of PNC Advisory Board (banking) (1993-1998); and Director, American School of Classical Studies in Athens (since 1997).

Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).

None

Wilma J. Smelcer
Age: 52

Trustee

Since 2001

Chairman, Bank of America, Illinois (banking) (1998-January 2001); Chief Administrative Officer, Bank of America, Illinois (1996-1997); Governor, Board of Governors, Chicago Stock Exchange (national securities exchange) (since April 2001).

Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).

None

Richard P. Strubel
Age: 62

Trustee

Since 1997

President, COO and director Unext Inc. (provider of educational services via the internet) (since 1999); Director, Cantilever Technologies, Inc. (a private software company) (since 1999); Trustee, The University of Chicago (since 1987); Managing Director, Tandem Partners, Inc. (1990-1999).

Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).

Gildan Activewear Inc. (an activewear clothing marketing and manufacturing company); Unext, Inc. (provider of educational services via the internet); Northern Mutual Fund Complex (57 Portfolios).

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Interested Trustees

Number of

Term of

Portfolios in

Position(s)

Office and

Fund Complex

Other

Name,

Held with

Length of

Principal Occupation(s)

Overseen by

Directorships

Address and Age¹

Trust

Time Served²

During Past 5 Years

Trustee³

Held by Trustee⁴

*David B. Ford
Age: 55

Trustee

Since 1997

Advisory Director, Goldman Sachs & Co. (since December 2001); Director, Goldman Sachs Princeton, LLC (formerly, Commodities Corp. LLC) (futures and commodities traders) (April 1997-December 2001); Managing Director, J. Aron & Company (commodity dealer and risk management adviser) (November 1996-December 2001); Managing Director, Goldman Sachs & Co. Investment Management Division (November 1996-December 2001); Chief Executive Officer and Director, CIN Management (investment adviser) (August 1996- December 2001); Chief Executive Officer & Managing Director and Director, Goldman Sachs Asset Management International (November 1995 and December 1994, respectively to December 2001); Co-Head, Goldman Sachs Asset Management (November 1995-December 2001); Co-Head and Director, Goldman Sachs Funds Management, L.P. (November 1995 and December 1994, respectively to December 2001); and Chairman and Director, Goldman Sachs Asset Management Japan Limited (November 1994-December 2001).

Trustee— Goldman Sachs Mutual Fund Complex (registered investment companies).

None

*Alan A. Shuch
Age: 52

Trustee

Since 1997

Advisory Director— GSAM (since May 1999); Limited Partner, Goldman Sachs (prior to May 1999); General Partner, Goldman Sachs (prior to December 1994); President and Chief Operating Officer of GSAM (prior to December 1994); and Consultant to GSAM (since December 1994).

Trustee— Goldman Sachs Mutual Fund Complex (registered investment companies).

None

*Kaysie P. Uniacke
Age: 40

Trustee
& Assistant Secret

Since 2001
ary Since 1998

Managing Director, GSAM (since 1997); and Vice President and Senior Fund Manager, GSAM (1988 to 1997).

Trustee— Goldman Sachs Mutual Fund Complex (registered investment companies).

None


*		These persons are considered to be “Interested Trustees” because they hold positions with Goldman Sachs and own securities issued by The Goldman Sachs Group, Inc. Each Interested Trustee holds comparable positions with certain other companies of which Goldman Sachs, GSAM or an affiliate thereof is the investment adviser, administrator and/or distributor.
¹		Each Trustee may be contacted by writing to the Trustee, c/o Goldman Sachs Asset Management, 32 Old Slip, New York, New York, 10005, Attn: Howard B. Surloff.
²		Each Trustee holds office for an indefinite term until the earliest of: (a) the election of his or her successor; (b) the date a Trustee resigns or is removed by the Board of Trustees or shareholders, in accordance with the Trust’s Declaration of Trust; (c) in accordance with the current resolutions of the Board of Trustees (which may be changed by the Trustees without shareholder vote) after the Trustee attains the age of 72 years; or (d) the Trust terminates.
³		The Goldman Sachs Mutual Fund Complex consists of Goldman Sachs Trust and Goldman Sachs Variable Insurance Trust. As of December 31, 2001, Goldman Sachs Trust consisted of 60 portfolios and Goldman Sachs Variable Insurance Trust consisted of 9 portfolios, including the Funds described in this Report.
⁴		This column includes only directorships of companies required to report to the SEC under the Securities and Exchange Act of 1934 (i.e., “public companies”) or other investment companies registered under the Act.

Additional Information about the Trustees is available in the Funds’ Statement of Additional Information which can be obtained from Goldman Sachs free of charge by calling this toll-free number (in the U.S.): 800-292-4726.

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Officers of the Trust



		Term of
		Office and
	Position(s) Held	Length of
Name, Age And Address	With Trust	Time Served¹		Principal Occupation(s) During Past 5 Years






Gary D. Black 32 Old Slip New York, NY 10005 Age: 41	President		Since 2001	Managing Director, Goldman Sachs (since June 2001); Executive Vice President, AllianceBernstein (October 2000-June 2001); Managing Director, Global Institutional Investment Management, Sanford Bernstein (January 1999-October 2000) and Senior Research Analyst (February 1992-December 1998). President— Goldman Sachs Mutual Fund Complex (since 2001) (registered investment companies).

John M. Perlowski 32 Old Slip New York, NY 10005 Age: 37	Treasurer		Since 1997	Vice President, Goldman Sachs (since July 1995); and Director/ Fund Accounting & Custody, Investors Bank & Trust Company (November 1993-July 1995). Treasurer— Goldman Sachs Mutual Fund Complex (registered investment companies).

Philip V. Giuca, Jr. 32 Old Slip New York, NY 10005 Age: 39	Assistant Treasurer		Since 1998	Vice President, Goldman Sachs (May 1992-Present). Assistant Treasurer— Goldman Sachs Mutual Fund Complex (registered investment companies).

Peter W. Fortner 32 Old Slip New York, NY 10005 Age: 43	Assistant Treasurer		Since 2000	Vice President, Goldman Sachs (July 2000-present); Associate, Prudential Insurance Company of America (November 1985-June 2000); and Assistant Treasurer, certain closed-end funds administered by Prudential (1999 and 2000). Assistant Treasurer— Goldman Sachs Mutual Fund Complex (registered investment companies).

Kenneth G. Curran 32 Old Slip New York, NY 10005 Age: 38	Assistant Treasurer		Since 2001	Vice President, Goldman Sachs (November 1998-Present); and Senior Tax Manager, KPMG Peat Marwick (August 1995-October 1998). Assistant Treasurer— Goldman Sachs Mutual Fund Complex (registered investment companies).

James A. Fitzpatrick 4900 Sears Tower Chicago, IL 60606 Age: 41	Vice President		Since 1997	Managing Director, Goldman Sachs (since October 1999); Vice President of GSAM (April 1997-December 1999); and Vice President and General Manager, First Data Corporation— Investor Services Group (1994 to 1997). Vice President— Goldman Sachs Mutual Fund Complex (registered investment companies).

Jesse H. Cole 4900 Sears Tower Chicago, IL 60606 Age: 38	Vice President		Since 1998	Vice President, GSAM (since June 1998); Vice President, AIM Management Group, Inc. (investment advisor) (April 1996-June 1998); and Assistant Vice President, The Northern Trust Company (June 1987-April 1996). Vice President— Goldman Sachs Mutual Fund Complex (registered investment companies).

Kerry K. Daniels 4900 Sears Tower Chicago, IL 60606 Age: 38	Vice President		Since 2000	Manager, Institutional Account Administration— Shareholder Services, Goldman Sachs (since 1986). Vice President— Goldman Sachs Mutual Fund Complex (registered investment companies).

Mary F. Hoppa 4900 Sears Tower Chicago, IL 60606 Age: 37	Vice President		Since 2000	Vice President, Goldman Sachs (since October 1999); and Senior Vice President and Director of Mutual Fund Operations, Strong Capital Management (January 1987-September 1999). Vice President— Goldman Sachs Mutual Fund Complex (registered investment companies).

Christopher Keller 4900 Sears Tower Chicago, IL 60606 Age 36	Vice President		Since 2000	Vice President, Goldman Sachs (April 1997-present); and Manager, Andersen Consulting (August 1989-April 1997). Vice President— Goldman Sachs Mutual Fund Complex (registered investment companies).

James A. McNamara 4900 Sears Tower Chicago, IL 60606 Age 39	Vice President		Since 2001	Managing Director, Goldman Sachs (since December 1998); Director of Institutional Fund Sales, GSAM (April 1998-December 2000); Senior Vice President and Manager, Dreyfus Institutional Service Corporation (January 1993-April 1998). Vice President— Goldman Sachs Mutual Fund Complex (registered investment companies).

Howard B. Surloff 32 Old Slip New York, NY 10005 Age: 36	Secretary		Since 2001	Assistant General Counsel, GSAM and General Counsel to the U.S. Funds Group (since December 1997); Assistant General Counsel and Vice President, Goldman Sachs (since November 1993 and May 1994, respectively); Counsel to the Funds Group, GSAM (November 1993-December 1997). Secretary— Goldman Sachs Mutual Fund Complex (registered investment companies) (since 2001) and Assistant Secretary prior thereto.

Dave Fishman 32 Old Slip New York, NY 10005 Age: 37	Assistant Secretary		Since 2001	Managing Director, Goldman Sachs (since December 2001), Vice President, Goldman Sachs (1997 - December 2001); Trader, Bankers Trust (1986 to 1997). Assistant Secretary— Goldman Sachs Mutual Fund Complex (registered investment companies).

Danny Burke 32 Old Slip New York, NY 10005 Age: 39	Assistant Secretary		Since 2001	Vice President, Goldman Sachs (since 1987). Assistant Secretary— Goldman Sachs Mutual Fund Complex (registered investment companies).

GOLDMAN SACHS VARIABLE INSURANCE TRUST



		Term of
		Office and
	Position(s) Held	Length of
Name, Age And Address	With Trust	Time Served¹		Principal Occupation(s) During Past 5 Years






Elizabeth D. Anderson 32 Old Slip New York, NY 10005 Age: 32	Assistant Secretary		Since 1998	Fund Manager, GSAM (since April 1996); Junior Fund Manager, GSAM (1995-April 1996); Funds Trading Assistant, GSAM (1993-1995). Assistant Secretary— Goldman Sachs Mutual Fund Complex (registered investment companies).

Amy E. Belanger 32 Old Slip New York, NY 10005 Age: 32	Assistant Secretary		Since 1999	Vice President, Goldman Sachs (since June 1999); Assistant General Counsel, Goldman Sachs (since 2000) Counsel, Goldman Sachs (since 1998); Associate, Dechert Price & Rhoads (September 1996-1998). Assistant Secretary— Goldman Sachs Mutual Fund Complex (registered investment companies).


¹		Officers hold office at the pleasure of the Board of Trustees or until their successors are duly elected and qualified. Each officer holds comparable positions with certain other companies of which Goldman Sachs, GSAM or an affiliate thereof is the investment adviser, administrator and/or distributor.

Variable Insurance Trust-Tax Information (unaudited)

For the year ended December 31, 2001, 100.0%, 100.0%, 45.82%, 91.22%, 100.0% and 24.89% of the dividends paid from net investment company taxable income by the Growth and Income, CORE US Equity, CORE Large Cap Growth, CORE Small Cap Equity, Capital Growth and Mid Cap Value Funds respectively, qualify for the dividends received deduction available to corporations.

Pursuant to Section 852 of the Internal Revenue Code, Capital Growth, Mid Cap Value and International Equity designate $53,916, $1,156,110 and $45,163 as capital gains dividends paid during its year ended December 31, 2001.

For the 2001 tax year the Goldman Sachs Variable Insurance Trust International Equity Portfolio (the Fund) has elected to pass through a credit for taxes paid to foreign jurisdictions. For the distributions paid during the year ended December 31, 2001, the total amount of income received by the Fund from sources within foreign countries and possessions of the United States was $0.0565 per share, all of which is attributable to qualified passive income. The total amount of taxes paid by the Fund to such countries was $0.0254 per share. The country-by country components of these totals are provided below, as required pursuant to Section 853 of the Internal Revenue Code.


	Foreign		Foreign
	Source Income		Taxes Withheld
Country	Per Share		Per Share


Australia	$	0.0022	$	—

Finland		0.0005		0.0003

France		0.0048		0.0027

Germany		0.0024		0.0009

Hong Kong		0.0026		—

Ireland		0.0007		—

Italy		0.0035		0.0021

Japan		0.0057		0.0033

Netherlands		0.0075		0.0040

Portugal		0.0009		0.0005

Singapore		0.0012		0.0010

Spain		0.0017		0.0006

Sweden		0.0026		0.0015

Switzerland		0.0030		0.0018

United Kingdom		0.0172		0.0066


TRUSTEES		OFFICERS
Ashok N. Bakhru, Chairman		Gary D. Black, President
David B. Ford		Jesse H. Cole, Vice President
Patrick T. Harker		James A. Fitzpatrick, Vice President
Mary P. McPherson		Kerry K. Daniels, Vice President
Alan A. Shuch		Mary F. Hoppa, Vice President
Wilma J. Smelcer		Christopher Keller, Vice President
Richard P. Strubel		James A. McNamara, Vice President
Kaysie P. Uniake		John M. Perlowski, Treasurer
		Kenneth G. Curran, Assistant Treasurer
		Peter W. Fortner, Assistant Treasurer
		Philip V. Giuca, Jr., Assistant Treasurer
		Howard B. Surloff, Secretary
		Amy E. Belanger, Assistant Secretary

GOLDMAN, SACHS & CO. Distributor and Transfer Agent

GOLDMAN SACHS ASSET MANAGEMENT Investment Adviser

GOLDMAN SACHS ASSET MANAGEMENT INTERNATIONAL 133 Peterborough Court London, England EC4A 2BB

		Toll Free (in U.S.): 800-292-4726

This report is prepared for the general information of contract owners and is not an offer of shares of the Goldman Sachs Variable Insurance Trust: Growth and Income, CORE U.S. Equity, CORE Large Cap Growth, CORE Small Cap Equity, Capital Growth, Mid Cap Value, International Equity, Global Income and Internet Tollkeeper Funds.

This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus which contains facts concerning the Fund’s objectives, policies, management, expenses and other information.

© Copyright 2001 Goldman, Sachs & Co. All rights reserved. Date of first use: February 15, 2002