Goldman

Sachs Variable Insurance Trust

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

Semiannual Report

June 30, 2002

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND 

Shareholder Letter

Dear Shareholders:

This report provides an overview on the performance of the Goldman Sachs Variable Insurance Trust — Growth and Income Fund for the six-month period that ended June 30, 2002.

Market Review

The first half of 2002 was marked by a defensive mood, as the markets absorbed the shock of escalating violence in the Middle East and its impact on oil prices. Furthermore, the market was characterized by investor skepticism brought on by corporate earnings disappointments, apprehension of further disturbing accounting news, and fear of additional terrorist attacks. Companies with challenging cash flow outlooks suffered severely, as investors showed an unwillingness to stand by those businesses that overbuilt capacity in recent years and now face extreme competitive pricing issues.

In market declines such as the one we have recently seen, investors often sell for emotional reasons, which usually results in valuations decreasing within industries as investors engage in the market equivalent of “throwing out the baby with the bath water.” As prepared investors, it is during these times that we seek to upgrade our portfolios, as higher quality companies become available to us at very attractive prices. The Value team avoided some of the market’s major “torpedoes,” which we attribute to our strong research governance. We adhere to a principle of not compromising on our fundamental research process, which can help us in our attempt to put only quality names into our portfolios. In summary, we will continue to emphasize balance sheet quality, cash flow stability, and companies with superior management teams.

Performance Review

Over the six-month period that ended June 30, 2002, the Fund generated a -4.18% cumulative total return. Over the same time period the Fund’s benchmark, the Standard & Poor’s 500 Index (with dividends reinvested) generated a -13.16% cumulative total return.

Strong stock selection was the main driver of the Fund’s outperformance versus the benchmark during the reporting period. The Fund’s quality bias and emphasis on price and prospects, not merely price, has been well founded during the challenging investing environment in 2002.

The Fund’s holdings in the Industrials and Consumer Staples sectors were particularly strong, with General Dynamics Corp. and ConAgra Foods, Inc. leading the way in their respective areas. General Dynamics has continued to make strategic acquisitions that have helped it to become more of a dominant market player, and the rise in military spending has benefited its industry. ConAgra’s profits increased during its fiscal fourth quarter on improved sales and earnings growth. Bank of America, the Fund’s second largest holding, also enhanced results. Through its banking subsidiaries and various non-banking entities the company provides a diversified range of banking and non-banking financial services and products. Bank of America has been experiencing earnings per share growth and continues to find ways to help expand its asset base and strengthen relationships with current customers.

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 GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Shareholder Letter (continued)

Citigroup, Inc. was a negative contributor to performance, due in part to investors concern over its amount of bad debt exposure, particularly in regards to WorldCom. We see the current problems as short term and continue to hold Citigroup due to the strength of its diverse business mix across products lines and international markets.

A new position added to the portfolio was Ocean Energy, Inc. We believe the company is a successful energy producer with strong future growth potential. Ocean Energy is in the unique position of owning its resources, and has the ability to significantly increase its excess reserves, attributes that are hard for other producers to duplicate. We also believe that the management team is disciplined in its capital allocation decisions and is committed to reducing capital expenditures relative to its cash flow.

Investment Objective

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

Portfolio Composition

Top 10 Portfolio Holdings as of June 30, 2002*

		% of Total
Company	Business	Net Assets
Exxon Mobil Corp.	Energy Resources		4.4	%
Bank of America Corp.	Banks		3.5
ConAgra Foods, Inc.	Food & Beverage		3.2
Citigroup, Inc.	Banks		3.1
Kimberly-Clark Corp.	Home Products		2.4
Merck & Co., Inc.	Drugs		2.4
H.J. Heinz Co.	Food & Beverage		2.4
General Dynamics Corp.	Defense/Aerospace		2.3
Philip Morris Companies, Inc.	Tobacco		2.3
U.S. Bancorp	Banks		2.3

* 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. Furthermore, the value of shares of the Fund may fall as well as rise.

Outlook

We expect continued market volatility as we move into the second half of the year, fueled by concerns over earnings, further accounting issues, and fear of terrorism. We believe the best way to navigate through an uncertain market is through good fundamental research — you must know what you own. In-depth financial analysis and understanding the numbers is absolutely essential in this environment, and we believe we’re particularly well suited to identify these opportunities. Our team is structured around “centers of excellence,” whereby each team member has industry/sector specific responsibility. Not only does this provide more in extensive industry expertise, but also allows each member to be more focused in our search for undervalued situations.

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GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND 

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

Goldman Sachs Value Portfolio Management Team

July 8, 2002

3

 GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Performance Summary

June 30, 2002 (Unaudited)

The following graph shows the value as of June 30, 2002, 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 June 30, 2002.

	Since Inception	One Year	Six Months(a)
Average Annual Total Return through June 30, 2002
Growth and Income Fund (commenced January 12, 1998)	-1.83%	-7.68%		-4.18%

(a)  Not annualized

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GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND 

Statement of Investments

June 30, 2002 (Unaudited)

Shares		Description	Value
Common Stocks – 100.4%
Airlines – 0.8%
	19,736	Southwest Airlines Co.	$	318,934
Alcohol – 1.6%
	12,596	Anheuser-Busch Companies, Inc.		629,800
Apartments – 1.9%
	10,375	Archstone-Smith Trust		277,013
	16,175	Equity Residential Properties Trust		465,031
				742,044
Banks – 19.0%
	19,075	Bank of America Corp.		1,342,117
	6,175	Charter One Financial, Inc.		212,296
	31,159	Citigroup, Inc.		1,207,411
	5,600	FleetBoston Financial Corp.		181,160
	20,079	J.P. Morgan Chase & Co.		681,080
	27,450	KeyCorp		749,385
	2,999	M&T Bank Corp.		257,194
	3,727	Mellon Financial Corp.		117,140
	9,781	PNC Financial Services Group		511,351
	37,304	U.S. Bancorp		871,048
	13,400	Wachovia Corp.		511,612
	13,744	Wells Fargo & Co.		688,025
				7,329,819
Brokers – 0.5%
	5,025	Merrill Lynch & Co., Inc.		203,513
Chemicals – 0.8%
	7,284	E.I. du Pont de Nemours & Co.		323,410
Computer Hardware – 0.8%
	12,356	Dell Computer Corp.*		322,986
Computer Software – 0.4%
	8,075	VERITAS Software Corp.*		159,804
Defense/Aerospace – 2.3%
	8,475	General Dynamics Corp.		901,316
Department Stores – 1.3%
	14,704	The May Department Stores Co.		484,203
Drugs – 4.7%
	5,418	Johnson & Johnson		283,145
	18,258	Merck & Co., Inc.		924,585
	5,456	Pharmacia Corp.		204,327
	16,022	Schering-Plough Corp.		394,141
				1,806,198
Electrical Utilities – 5.8%
	30,058	Energy East Corp.		679,311
	5,357	Entergy Corp.		227,351
	5,799	Exelon Corp.		303,288
	12,960	FirstEnergy Corp.		432,605
	5,175	FPL Group, Inc.		310,448
	8,821	PPL Corp.		291,798
				2,244,801
Energy Resources – 8.8%
	41,431	Exxon Mobil Corp.		1,695,357
	27,850	Ocean Energy, Inc.		603,509
	4,100	Phillips Petroleum Co.		240,767
	14,179	Pioneer Natural Resources Co.*		369,363
	8,996	Royal Dutch Petroleum Co. ADR		497,209
				3,406,205
Environmental Services – 0.7%
	11,073	Waste Management, Inc.		288,452
Financial Services – 4.4%
	8,521	Countrywide Credit Industries, Inc.		411,138
	14,182	Federal Home Loan Mortgage Corp.		867,939
	1,743	Federal National Mortgage Association		128,546
	2,871	SLM Corp.		278,200
				1,685,823
Food & Beverage – 6.4%
	44,150	ConAgra Foods, Inc.		1,220,747
	22,327	H.J. Heinz Co.		917,640
	5,090	Hershey Foods Corp.		318,125
				2,456,512
Forest – 2.7%
	9,586	Bowater, Inc.		521,191
	12,056	International Paper Co.		525,400
				1,046,591
Gas Utilities – 1.6%
	16,952	KeySpan Corp.		638,243
Heavy Electrical – 0.7%
	2,154	3M Co.		264,942
Heavy Machinery – 0.9%
	7,348	Deere & Co.		351,969
Home Products – 3.8%
	15,140	Kimberly-Clark Corp.		938,680
	5,766	The Procter & Gamble Co.		514,904
				1,453,584
Industrial Parts – 2.9%
	5,425	American Standard Companies, Inc.*		407,418
	2,500	Illinois Tool Works, Inc.		170,750
	8,079	United Technologies Corp.		548,564
				1,126,732
Information Services – 1.4%
	27,525	Accenture Ltd.*		522,975
Life Insurance – 2.0%
	5,501	John Hancock Financial Services, Inc.		193,635
	18,550	The Principal Financial Group, Inc.*		575,050
				768,685
Media – 1.7%
	7,450	Cox Communications, Inc.*		205,248
	20,779	Fox Entertainment Group, Inc.*		451,943
				657,191
Mining – 0.7%
	7,885	Alcoa, Inc.		261,388

The accompanying notes are an integral part of these financial statements.       5

 GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Statement of Investments (continued)

June 30, 2002 (Unaudited)

Shares		Description	Value
Common Stocks – (continued)
Office Industrial – 1.8%
	15,075	Equity Office Properties Trust	$	453,757
	6,564	Liberty Property Trust		229,740
				683,497
Oil Services – 1.5%
	7,998	Baker Hughes, Inc.		266,253
	4,300	Nabors Industries Ltd.*		151,790
	4,100	Weatherford International Ltd.*		177,120
				595,163
Other REIT – 0.7%
	7,125	Boston Properties, Inc.		284,644
Property Insurance – 6.3%
	16,249	Aon Corp.		479,020
	12,125	PartnerRe Ltd.		593,519
	13,842	RenaissanceRe Holdings Ltd.		506,617
	10,268	XL Capital Ltd.		869,700
				2,448,856
Publishing – 1.5%
	7,740	Dow Jones & Co., Inc.		375,003
	2,675	Gannett Co., Inc.		203,032
				578,035
Railroads – 0.9%
	6,613	Canadian National Railway Co.		342,553
Retail – 1.0%
	10,750	Simon Property Group, Inc.		396,030
Security/Asset Management – 1.4%
	15,375	Alliance Capital Management Holding L.P.		526,594
Semiconductors – 0.4%
	6,900	Texas Instruments, Inc.		163,530
Telecommunications Equipment – 1.4%
	37,075	Motorola, Inc.		534,621
Telephone – 1.8%
	23,540	AT&T Corp.		251,878
	14,202	SBC Communications, Inc.		433,161
				685,039
Tobacco – 2.3%
	20,118	Philip Morris Companies, Inc.		878,754
Wireless – 0.8%
	54,925	AT&T Wireless Services, Inc.*		321,311
TOTAL COMMON STOCKS
(Cost $38,712,245)			$	38,834,747
TOTAL INVESTMENTS
(Cost $38,712,245)			$	38,834,747

   * 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.

Investment Abbreviation:
ADR	—	American Depositary Receipt
REIT	—	Real Estate Investment Trust

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

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

Shareholder Letter

Dear Shareholders:

This report provides an overview on the performance of the Goldman Sachs Variable Insurance Trust — CORE U.S. Equity Fund for the six-month period that ended June 30, 2002.

Market Review

For the six-month period ended June 30, 2002, the S&P 500 Index returned -13.16%. The index posted negative performance in 9 out of 13 sectors, with Telecommunications (-35.76%) posting the largest absolute negative returns. The heavily weighted Technology sector contributed (weight times performance) most negatively to benchmark performance. Among the positive performers, Basic Materials posted the best absolute returns.

Performance Review

Over the six-month period that ended June 30, 2002, the Fund generated a -14.17% cumulative total return, underperforming that of its benchmark, the Standard & Poor’s 500 Index (with dividends reinvested).

Among our CORE themes, Momentum and Profitability were the biggest positive contributors. Valuation also contributed positively. Fundamental Research slightly enhanced excess returns, while Earnings Quality was essentially flat. Stock selection was negative overall, most notably in the Telecommunications sector. Even so, positive stock selection in 6 of the 13 sectors, especially in Technology, offset some of the losses.

Investment Objective and Strategies

The Fund seeks long-term growth of capital 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 portfolio 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.

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

Shareholder Letter (continued)

Portfolio Composition

Top 10 Portfolio Holdings as of June 30, 2002*

		% of Total
Company	Business	Net Assets
Wal-Mart Stores, Inc.	Department Stores		3.8	%
General Electric Co.	Financial Services		3.6
Citigroup, Inc.	Banks		3.1
Microsoft Corp.	Computer Software		2.9
Exxon Mobil Corp.	Energy Resources		2.8
Royal Dutch Petroleum Co.	Energy Resources		2.4
Bank of America Corp.	Banks		2.2
The Procter & Gamble Co.	Home Products		2.0
Merck & Co., Inc.	Drugs		1.8
Viacom, Inc. Class B	Entertainment		1.8

* 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. Furthermore, the value of shares of the Fund may fall as well as rise.

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

July 8, 2002

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

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

Performance Summary

June 30, 2002 (Unaudited)

The following graph shows the value as of June 30, 2002, 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 June 30, 2002.

	Since Inception	One Year	Six Months(a)
Average Annual Total Return through June 30, 2002
CORE U.S. Equity Fund (commenced February 13, 1998)	-0.59%	-19.45%		-14.17%

(a)  Not annualized

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

Statement of Investments

June 30, 2002 (Unaudited)

Shares		Description	Value
Common Stocks – 98.7%
Airlines – 0.1%
	11,000	AMR Corp.*	$	185,460
Apparel – 0.5%
	14,900	Sara Lee Corp.		307,536
	25,000	The TJX Companies, Inc.		490,250
				797,786
Banks – 10.0%
	11,000	Associated Banc-Corp.		414,810
	49,131	Bank of America Corp.		3,456,857
	124,166	Citigroup, Inc.		4,811,432
	2,100	Comerica, Inc.		128,940
	23,050	Fifth Third Bancorp		1,536,283
	4,700	J.P. Morgan Chase & Co.		159,424
	2,500	M&T Bank Corp.		214,400
	5,200	Marshall & Ilsley Corp.		160,836
	6,900	SouthTrust Corp.		180,228
	27,900	SunTrust Banks, Inc.		1,889,388
	6,700	U.S. Bancorp		156,445
	8,400	Union Planters Corp.		271,908
	37,300	Wachovia Corp.		1,424,114
	6,600	Wells Fargo & Co.		330,396
	6,200	Zions Bancorp		323,020
				15,458,481
Biotechnology – 2.9%
	54,000	Amgen, Inc.*		2,261,520
	35,800	Genentech, Inc.*		1,199,300
	37,300	Immunex Corp.*		833,282
	9,500	SICOR, Inc.*		176,130
				4,470,232
Brokers – 0.4%
	10,800	The Bear Stearns Companies, Inc.		660,960
Chemicals – 0.3%
	6,000	Ashland, Inc.		243,000
	13,100	The Goodyear Tire & Rubber Co.		245,101
				488,101
Computer Hardware – 4.6%
	128,500	Cisco Systems, Inc.*		1,792,575
	105,700	Dell Computer Corp.*		2,762,998
	14,411	Hewlett-Packard Co.		220,200
	67,900	Ingram Micro, Inc.*		933,625
	7,600	Storage Technology Corp.*		121,372
	36,000	Tech Data Corp.*		1,362,600
				7,193,370
Computer Software – 5.1%
	36,800	International Business Machines Corp.		2,649,600
	83,000	Microsoft Corp.*		4,491,960
	3,900	NCR Corp.*		134,940
	18,000	Network Associates, Inc.*		346,860
	7,800	Symantec Corp.*		256,230
				7,879,590
Defense/Aerospace – 1.7%
	14,700	General Dynamics Corp.		1,563,345
	5,400	ITT Industries, Inc.		381,240
	7,700	Lockheed Martin Corp.		535,150
	1,600	Northrop Grumman Corp.		200,000
				2,679,735
Department Stores – 4.4%
	9,400	Dillard’s, Inc.		247,126
	5,200	Federated Department Stores, Inc.*		206,440
	15,000	J. C. Penney Co., Inc.		330,300
	2,800	Sears, Roebuck & Co.		152,040
	106,000	Wal-Mart Stores, Inc.		5,831,060
				6,766,966
Drugs – 9.3%
	56,500	Abbott Laboratories		2,127,225
	11,200	AmerisourceBergen Corp.		851,200
	33,600	Cardinal Health, Inc.		2,063,376
	7,500	Eli Lilly & Co.		423,000
	48,200	Johnson & Johnson		2,518,932
	45,900	McKesson Corp.		1,500,930
	56,000	Merck & Co., Inc.		2,835,840
	60,450	Pfizer, Inc.		2,115,750
				14,436,253
Electrical Equipment – 0.6%
	28,600	Agilent Technologies, Inc.*		676,390
	5,700	Jabil Circuit, Inc.*		120,327
	22,600	Solectron Corp.*		138,990
				935,707
Electrical Utilities – 1.9%
	22,100	American Electric Power Co., Inc.		884,442
	6,700	Constellation Energy Group, Inc.		196,578
	3,800	Duke Energy Corp.		118,180
	11,100	Dynegy, Inc.		79,920
	13,000	Edison International*		221,000
	33,400	Entergy Corp.		1,417,496
				2,917,616
Energy Resources – 6.0%
	9,900	Anadarko Petroleum Corp.		488,070
	10,100	Conoco, Inc.		280,780
	107,212	Exxon Mobil Corp.		4,387,115
	3,900	Occidental Petroleum Corp.		116,961
	6,800	Phillips Petroleum Co.		400,384
	66,700	Royal Dutch Petroleum Co. ADR		3,686,509
				9,359,819
Entertainment – 1.8%
	63,473	Viacom, Inc. Class B*		2,816,297
Environmental Services – 0.4%
	25,300	Waste Management, Inc.		659,065

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)
Financial Services – 4.5%
	3,700	Countrywide Credit Industries, Inc.	$	178,525
	9,200	Dun & Bradstreet Corp.*		304,060
	2,600	Federal Home Loan Mortgage Corp.		159,120
	190,200	General Electric Co.		5,525,310
	3,200	MBNA Corp.		105,824
	7,900	SLM Corp.		765,510
				7,038,349
Food & Beverage – 5.0%
	22,100	Archer-Daniels-Midland Co.		282,659
	39,400	Kraft Foods, Inc.		1,613,430
	41,300	PepsiCo, Inc.		1,990,660
	11,500	Smithfield Foods, Inc.*		213,325
	37,300	SUPERVALU, INC.		914,969
	50,300	SYSCO Corp.		1,369,166
	12,800	The Coca-Cola Co.		716,800
	9,500	Unilever NV		615,600
				7,716,609
Forest – 0.6%
	6,100	Georgia-Pacific Corp.		149,938
	11,400	Weyerhaeuser Co.		727,890
				877,828
Gas Utilities – 0.3%
	27,700	Aquila, Inc.		221,600
	11,400	ONEOK, Inc.		250,230
				471,830
Gold – 0.2%
	11,000	Newmont Mining Corp., Holding Co.		289,630
Grocery – 0.1%
	6,500	Albertson’s, Inc.		197,990
Heavy Electrical – 1.3%
	9,500	3M Co.		1,168,500
	7,600	Cummins, Inc.		251,560
	10,700	Emerson Electric Co.		572,557
				1,992,617
Heavy Machinery – 0.6%
	12,800	Caterpillar, Inc.		626,560
	4,500	Deere & Co.		215,550
				842,110
Home Products – 3.2%
	6,400	Avon Products, Inc.		334,336
	17,400	The Clorox Co.		719,490
	25,100	The Gillette Co.		850,137
	34,800	The Procter & Gamble Co.		3,107,640
				5,011,603
Hotel – 0.1%
	11,400	Cendant Corp.*		181,032
Industrial Parts – 0.2%
	4,600	Genuine Parts Co.		160,402
	4,200	Pentair, Inc.		201,936
				362,338
Information Services – 1.7%
	21,100	Computer Sciences Corp.*		1,008,580
	29,400	Electronic Data Systems Corp.		1,092,210
	8,000	First Data Corp.		297,600
	9,300	SunGard Data Systems, Inc.*		246,264
				2,644,654
Leisure – 0.3%
	8,000	Harley-Davidson, Inc.		410,160
Life Insurance – 3.5%
	21,300	Aetna, Inc.		1,021,761
	9,200	John Hancock Financial Services, Inc.		323,840
	60,600	MetLife, Inc.		1,745,280
	19,300	Nationwide Financial Services, Inc.		762,350
	46,200	Prudential Financial, Inc.*		1,541,232
				5,394,463
Media – 2.9%
	159,450	AOL Time Warner, Inc.*		2,345,510
	41,600	Clear Channel Communications, Inc.*		1,332,032
	31,300	Comcast Corp.*		746,192
	5,000	Fox Entertainment Group, Inc.*		108,750
				4,532,484
Medical Products – 0.6%
	20,600	Baxter International, Inc.		915,670
Medical Providers – 0.8%
	14,100	UnitedHealth Group, Inc.		1,290,855
Mining – 1.3%
	31,500	Alcan, Inc.		1,181,880
	14,100	Ball Corp.		584,868
	12,600	Massey Energy Co.		160,020
				1,926,768
Motor Vehicle – 3.0%
	54,800	AutoNation, Inc.*		794,600
	37,300	General Motors Corp.		1,993,685
	20,000	Johnson Controls, Inc.		1,632,200
	15,200	Visteon Corp.		215,840
				4,636,325
Office Industrial – 0.2%
	9,900	Equity Office Properties Trust		297,990
Oil Refining – 1.0%
	13,500	ChevronTexaco Corp.		1,194,750
	12,000	Marathon Oil Corp.		325,440
				1,520,190

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)

June 30, 2002 (Unaudited)

Shares		Description	Value
Common Stocks – (continued)
Oil Services – 0.6%
	7,200	Baker Hughes, Inc.	$	239,688
	6,900	Schlumberger Ltd.		320,850
	12,300	Transocean, Inc.		383,145
				943,683
Property Insurance – 2.5%
	8,300	American Financial Group, Inc.		198,370
	23,306	American International Group, Inc.		1,590,168
	7,700	CNA Financial Corp.*		204,050
	31,300	Loews Corp.		1,658,587
	4,500	The Hartford Financial Services Group, Inc.		267,615
				3,918,790
Publishing – 0.8%
	6,800	Banta Corp.		244,120
	25,600	Deluxe Corp.		995,584
				1,239,704
Railroads – 0.6%
	27,400	CSX Corp.		960,370
Securities/Asset Management – 1.0%
	11,200	Franklin Resources, Inc.		477,568
	7,900	Morgan Stanley		340,332
	5,100	SEI Investments Co.		143,667
	34,600	The Charles Schwab Corp.		387,520
	5,800	The John Nuveen Co.		149,060
				1,498,147
Semiconductors – 2.8%
	34,000	Arrow Electronics, Inc.*		705,500
	35,100	Avnet, Inc.*		771,849
	79,500	Intel Corp.		1,452,465
	24,700	Teradyne, Inc.*		580,450
	8,400	Texas Instruments, Inc.		199,080
	10,400	Vishay Intertechnology, Inc.*		228,800
	15,600	Xilinx, Inc.*		349,908
				4,288,052
Specialty Retail – 2.9%
	16,600	Best Buy Co., Inc.*		602,580
	47,900	Office Depot, Inc.*		804,720
	27,100	Staples, Inc.*		533,870
	69,000	The Home Depot, Inc.		2,534,370
				4,475,540
Telecommunications Equipment – 1.3%
	140,100	Motorola, Inc.		2,020,242
Telephone – 2.5%
	61,865	AT&T Corp.		661,956
	10,722	SBC Communications, Inc.		327,021
	83,600	Sprint Corp.		886,996
	49,194	Verizon Communications, Inc.		1,975,139
				3,851,112
Thrifts – 0.1%
	6,300	Washington Federal, Inc.		159,138
Tobacco – 0.6%
	8,300	Philip Morris Companies, Inc.		362,544
	11,500	R.J. Reynolds Tobacco Holdings, Inc.		618,125
				980,669
Truck Freight – 0.7%
	17,800	United Parcel Service, Inc.		1,099,150
Wireless – 0.9%
	8,300	ALLTEL Corp.		390,100
	47,924	AT&T Wireless Services, Inc.*		280,355
	49,200	Sprint Corp. (PCS Group)*		219,924
	7,600	Telephone & Data Systems, Inc.		460,180
	500	United States Cellular Corp.*		12,725
				1,363,284
TOTAL COMMON STOCKS
(Cost $171,362,827)			$	153,054,814

Principal		Interest			Maturity
Amount		Rate			Date		Value
Repurchase Agreement – 0.5%
Joint Repurchase Agreement Account^
$	700,000		1.96	%		07/01/2002	$	700,000
TOTAL REPURCHASE AGREEMENT
(Cost $700,000)							$	700,000
TOTAL INVESTMENTS
(Cost $172,062,827)							$	153,754,814

*	Non-income producing security.
^	Joint repurchase agreement was entered into on June 28, 2002.

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

Investment Abbreviation:
ADR	—	American Depositary Receipt

12     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:

This report provides an overview on the performance of the Goldman Sachs Variable Insurance Trust — CORE^SM Small Cap Equity Fund for the six-month period that ended June 30, 2002.

Market Review

The Russell 2000 Index fell 4.70% in the six-month period ending June 30, 2002. Within the Index, the Technology and Health Care sectors were the biggest contributors (weight times performance) to the decline, while strong returns in Financials curbed some of the losses.

Performance Review

Over the six-month period that ended June 30, 2002, the Fund generated a 1.20% cumulative total return. Over the same time period the Fund’s benchmark, the Russell 2000 Index (with dividends reinvested) generated a -4.70% 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. Momentum also performed well for the six-month period, after struggling in the fourth quarter 2001. Valuation continued its positive streak, contributing significantly to positive excess returns. Fundamental Research and Earnings Quality were up only slightly for the period.

Stock selection was a positive contributor in 8 of the 13 sectors that make up the Index. The best relative returns were generated in the Technology and Health Care sectors, while it lagged the benchmark most notably in Consumer Noncyclicals.

Investment Objective

The Fund seeks long-term growth of capital, primarily through a broadly diversified portfolio of equity securities of U.S. issuers with risk characteristics similar to those of the Russell 2000 Index.

The portfolio 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.

13

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

Shareholder Letter continued

Portfolio Composition

Top 10 Portfolio Holdings as of June 30, 2002*

		% of Total
Company	Business	Net Assets
Hughes Supply, Inc.	Industrial Parts		1.2	%
The Great Atlantic & Pacific Tea Co., Inc.	Grocery		0.8
ONEOK, Inc.	Gas Utilities		0.8
Anixter International, Inc.	Electrical Equipment		0.8
Airborne, Inc.	Truck Freight		0.7
Perrigo Co.	Drugs		0.7
Commercial Federal Corp.	Banks		0.6
The John Nuveen Co.	Securities/Asset Management		0.6
Amli Residential Properties Trust	Retail		0.6
Quanex Corp.	Mining		0.6

* 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. Furthermore, the value of shares of the Fund may fall as well as rise.

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

July 8, 2002

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

14

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

Performance Summary

June 30, 2002 (Unaudited)

The following graph shows the value as of June 30, 2002, 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 June 30, 2002.

	Since Inception	One Year	Six Months(a)
Average Annual Total Return through June 30, 2002
CORE Small Cap Equity Fund (commenced February 13, 1998)	3.19%	0.65%		1.20%

(a)  Not annualized

15

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

Statement of Investments

June 30, 2002 (Unaudited)

Shares		Description	Value
Common Stocks – 100.1%
Airlines – 0.6%
	6,600	Alaska Air Group, Inc.*	$	172,260
	1,300	Atlantic Coast Airlines Holdings, Inc.*		28,210
	3,300	ExpressJet Holdings, Inc.*		43,065
	5,900	Mesa Air Group, Inc.*		54,280
	3,300	Midwest Express Holdings, Inc.*		43,236
				341,051
Alcohol – 0.2%
	2,800	The Robert Mondavi Corp.*		95,844
Apartment – 0.3%
	6,300	Mid-America Apartment Communities, Inc.		168,525
Apparel – 0.6%
	700	Coach, Inc.*		38,430
	3,400	Kellwood Co.		110,500
	3,800	Quaker Fabric Corp.*		58,838
	2,200	Quiksilver, Inc.*		54,560
	3,600	Skechers U.S.A., Inc.*		77,796
				340,124
Banks – 7.1%
	6,300	Bank of Hawaii Corp.		176,400
	2,000	Berkshire Hills Bancorp, Inc.		52,400
	2,200	Capital City Bank Group, Inc.		75,966
	1,500	Commerce Bancorp, Inc.		66,300
	12,700	Commercial Federal Corp.		368,300
	600	Compass Bancshares, Inc.		20,160
	5,100	Corus Bankshares, Inc.		234,187
	400	Cullen/Frost Bankers, Inc.		14,380
	7,200	East West Bancorp, Inc.		248,544
	6,300	Euronet Worldwide, Inc.*		100,737
	2,600	First Citizens BancShares, Inc.		287,534
	2,500	Flushing Financial Corp.		51,225
	5,037	Fulton Financial Corp.		95,350
	2,300	GBC Bancorp		66,585
	2,400	Hancock Holding Co.		161,712
	3,000	Independence Community Bank Corp.		87,810
	5,000	Investors Financial Services Corp.		167,700
	1,200	Medford Bancorp, Inc.		41,796
	14,400	NetBank, Inc.*		172,512
	6,900	OceanFirst Financial Corp.		166,566
	5,066	Pacific Capital Bancorp		120,976
	1,100	Port Financial Corp.		44,099
	4,400	Prosperity Bancshares, Inc.		81,400
	2,900	Provident Financial Group, Inc.		84,129
	1,700	Santander BanCorp		28,985
	7,300	Silicon Valley Bancshares*		192,428
	2,400	Sterling Bancorp		85,680
	6,600	Sterling Bancshares, Inc.		97,482
	2,800	Susquehanna Bancshares, Inc.		63,588
	7,700	Trustmark Corp.		196,735
	3,570	UMB Financial Corp.		167,326
	2,000	Unizan Financial Corp.		42,820
	1,400	Westamerica Bancorp		55,384
	5,850	Wintrust Financial Corp.		202,235
				4,119,431
Biotechnology – 3.0%
	1,200	3 Dimensional Pharmaceutical, Inc.*		5,340
	2,600	Albany Molecular Research, Inc.*		54,964
	2,200	Alexion Pharmaceuticals, Inc.*		33,330
	8,100	Applera Corp. - Celera Genomics Group*		96,852
	3,300	Bio-Rad Laboratories, Inc.*		150,183
	1,000	Cell Genesys, Inc.*		13,760
	1,600	Charles River Laboratories International, Inc.*		56,080
	3,500	Diversa Corp.*		34,825
	2,900	Enzo Biochem, Inc.*		41,557
	3,300	Gene Logic, Inc.*		46,200
	2,000	Genome Therapeutics Corp.*		4,620
	15,400	Immunomedics, Inc.*		80,234
	1,900	Invitrogen Corp.*		60,819
	8,500	Kos Pharmaceuticals, Inc.*		172,975
	4,700	Lexicon Genetics, Inc.*		19,364
	10,900	Ligand Pharmaceuticals, Inc. Class B*		158,050
	3,300	Maxygen, Inc.*		40,425
	800	MGI Pharma, Inc.*		5,648
	5,300	Noven Pharmaceuticals, Inc.*		135,150
	4,400	Protein Design Labs, Inc.*		47,784
	6,600	SICOR, Inc.*		122,364
	11,100	Techne Corp.*		313,242
	3,500	Vical, Inc.*		18,480
				1,712,246
Chemicals – 2.4%
	14,800	A. Schulman, Inc.		317,445
	5,100	Airgas, Inc.*		88,230
	11,100	Arch Chemicals, Inc.		274,170
	800	Ashland, Inc.		32,400
	4,900	Brady Corp.		171,500
	1,500	Carlisle Companies, Inc.		67,470
	2,800	Cytec Industries, Inc.*		88,032
	1,800	H.B. Fuller Co.		52,722
	3,900	IMC Global, Inc.		48,750
	4,900	Millennium Chemicals, Inc.		68,845
	8,100	PolyOne Corp.		91,125
	1,800	Rogers Corp.*		49,158
	1,200	The Lubrizol Corp.		40,200
	700	The Sherwin-Williams Co.		20,951
				1,410,998
Clothing – 1.0%
	8,400	Charming Shoppes, Inc.*		72,576
	1,700	Christopher & Banks Corp.*		71,910
	200	Payless ShoeSource, Inc.*		11,530

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

16

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

Shares		Description	Value
Common Stocks – (continued)
Clothing – (continued)
	8,000	Stein Mart, Inc.*	$	94,960
	13,200	The Finish Line, Inc.*		236,544
	3,900	The Wet Seal, Inc.*		94,770
				582,290
Computer Hardware – 3.7%
	18,600	3Com Corp.*		81,840
	6,700	Avocent Corp.*		104,635
	7,900	Checkpoint Systems, Inc.*		92,430
	6,400	Coinstar, Inc.*		156,480
	10,200	Computer Network Technology Corp.*		62,526
	9,700	Daisytek International Corp.*		164,512
	2,900	Global Imaging Systems, Inc.*		55,071
	21,300	IKON Office Solutions, Inc.		200,220
	6,000	Imation Corp.*		178,560
	6,100	InFocus Corp.*		71,858
	5,000	Ingram Micro, Inc.*		68,535
	4,800	Iomega Corp.*		61,680
	4,100	Kronos, Inc.*		130,541
	13,200	Maxtor Corp.*		59,664
	3,200	PC Connection, Inc.*		13,120
	2,600	RadiSys Corp.*		30,238
	3,600	SBS Technologies, Inc.*		44,096
	900	ScanSource, Inc.*		55,269
	6,700	Storage Technology Corp.*		106,999
	3,600	Take-Two Interactive Software, Inc.*		74,124
	4,500	Tech Data Corp.*		170,325
	51,800	Western Digital Corp.*		168,350
				2,151,073
Computer Software – 3.9%
	22,200	Acclaim Entertainment, Inc.*		78,366
	3,750	Activision, Inc.*		108,975
	8,000	Aspen Technology, Inc.*		66,376
	4,300	Avid Technology, Inc.*		39,818
	3,700	Borland Software Corp.*		38,110
	2,300	Documentum, Inc.*		27,600
	4,150	EPIQ Systems, Inc.*		70,633
	9,900	FileNET Corp.*		143,550
	3,200	HNC Software, Inc.*		53,302
	7,500	Hyperion Solutions Corp.*		136,780
	9,800	Intergraph Corp.*		170,914
	8,600	J.D. Edwards & Co.*		104,490
	4,200	JDA Software Group, Inc.*		118,692
	800	Midway Games, Inc.*		6,800
	2,600	MRO Software, Inc.*		29,588
	5,600	MSC.Software Corp.*		50,120
	3,700	NetIQ Corp.*		83,572
	55,300	Novell, Inc.*		177,513
	5,900	Pharmacopeia, Inc.*		50,262
	4,800	Phoenix Technologies Ltd.*		48,000
	4,100	Radiant Systems, Inc.*		53,423
	1,700	Renaissance Learning, Inc.*		34,374
	8,300	ScanSoft, Inc.*		62,997
	3,700	Secure Computing Corp.*		27,935
	2,400	SERENA Software, Inc.*		32,874
	2,200	SRA International, Inc.*		59,261
	7,000	Sybase, Inc.*		73,850
	300	Synopsys, Inc.*		16,443
	900	The Titan Corp.*		16,461
	2,600	THQ, Inc.*		77,420
	8,700	VitalWorks, Inc.*		71,340
	6,100	Websense, Inc.*		155,977
				2,285,816
Construction – 0.9%
	800	American Woodmark Corp.		44,904
	1,200	Beazer Homes USA, Inc.*		96,000
	13,450	Griffon Corp.*		243,445
	800	Lafarge North America, Inc.		28,120
	2,600	M/I Schottenstein Homes, Inc.		97,968
				510,437
Consumer Durables – 0.7%
	4,900	Interface, Inc.		39,396
	6,500	Kimball International, Inc. Class B		106,535
	300	Mohawk Industries, Inc.*		18,459
	5,600	Steelcase, Inc.		74,928
	1,600	The Toro Co.		90,944
	3,000	Universal Electronics, Inc.*		44,880
	7,683	Vialta, Inc.*		6,531
				381,673
Defense/Aerospace – 1.3%
	2,200	Cubic Corp.		52,140
	2,900	Curtiss-Wright Corp.		232,000
	4,300	GenCorp, Inc.		61,490
	5,100	Moog, Inc.*		218,688
	4,200	Stewart & Stevenson Services, Inc.		74,508
	5,100	Teledyne Technologies, Inc.*		105,825
				744,651
Department Stores – 0.8%
	8,700	Dillard’s, Inc.		228,723
	12,400	Shopko Stores, Inc.*		250,480
				479,203
Drugs – 3.8%
	5,900	Alpharma, Inc.		100,182
	400	AmerisourceBergen Corp.		30,400
	500	Barr Laboratories, Inc.*		31,765
	2,000	Biosite, Inc.*		56,300
	2,400	CIMA Labs, Inc.*		57,217
	8,400	Diagnostic Products Corp.		310,800
	4,800	First Horizon Pharmaceutical Corp.*		99,312
	900	Herbalife International, Inc.		17,190
	13,000	IDEXX Laboratories, Inc.*		335,270
	600	Medicis Pharmaceutical Corp.*		25,656
	17,100	NBTY, Inc.*		264,708
	29,900	Perrigo Co.*		388,700
	6,000	Pharmaceutical Resources, Inc.*		166,680

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

17

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

Statement of Investments (continued)

June 30, 2002 (Unaudited)

Shares		Description	Value
Common Stocks – (continued)
Drugs – (continued)
	8,072	Priority Healthcare Corp. Class B*	$	189,692
	4,600	Syncor International Corp.*		144,900
				2,218,772
Electrical Equipment – 5.6%
	3,300	3D Systems Corp.*		40,260
	7,200	Aeroflex, Inc.*		54,385
	16,200	Allen Telecom, Inc.*		69,660
	7,500	Anaren Microwave, Inc.*		64,800
	6,200	Andrew Corp.*		88,846
	19,200	Anixter International, Inc.*		451,200
	21,000	Arris Group, Inc.*		92,379
	10,400	Artesyn Technologies, Inc.*		67,402
	12,700	Audiovox Corp.*		100,965
	700	AVX Corp.		11,431
	3,100	BEI Technologies, Inc.		35,495
	8,100	Benchmark Electronics, Inc.*		234,900
	9,000	C-COR.net Corp.*		63,000
	900	Celeritek, Inc.*		5,940
	4,500	Coherent, Inc.*		133,997
	6,300	DMC Stratex Networks, Inc.*		12,663
	3,200	DSP Group, Inc.*		62,720
	4,000	FEI Co.*		98,040
	7,600	Fisher Scientific International, Inc.*		212,800
	1,100	FLIR Systems, Inc.*		46,167
	4,600	Harmonic, Inc.*		16,831
	5,500	Harvard Bioscience, Inc.*		30,745
	3,500	II-VI, Inc.*		51,695
	1,700	Input/Output, Inc.*		15,300
	7,600	Inrange Technologies Corp. Class B*		36,100
	8,700	Inter-Tel, Inc.		147,552
	2,800	Intermagnetics General Corp.*		56,560
	2,800	Itron, Inc.*		73,444
	3,400	MKS Instruments, Inc.*		68,238
	3,800	MTS Systems Corp.		50,008
	20,000	Pioneer-Standard Electronics, Inc.		207,800
	3,300	Planar Systems, Inc.*		62,717
	3,100	Plexus Corp.*		56,110
	15,900	Power-One, Inc.*		97,699
	8,200	Powerwave Technologies, Inc.*		74,760
	400	Roper Industries, Inc.		14,920
	4,200	Spectrian Corp.*		43,554
	3,200	Terayon Communication Systems, Inc.*		4,256
	5,600	Trimble Navigation Ltd.*		86,800
	10,600	Turnstone Systems, Inc.*		39,538
	7,800	Vicor Corp.*		54,522
	3,500	Zygo Corp.*		28,175
				3,264,374
Electrical Utilities – 1.3%
	14,700	Avista Corp.		202,860
	600	Conectiv		15,486
	2,100	Edison International*		35,700
	7,200	Integrated Electrical Services, Inc.*		45,000
	3,600	PNM Resources, Inc.		87,120
	13,100	Sierra Pacific Resources		102,180
	1,700	Westar Energy, Inc.		26,095
	6,100	WPS Resources Corp.		249,063
				763,504
Energy Resources – 0.9%
	2,200	Chesapeake Energy Corp.*		15,840
	2,700	Patina Oil & Gas Corp.		74,061
	900	Quicksilver Resources, Inc.*		23,265
	400	Spinnaker Exploration Co.*		14,408
	2,400	Stone Energy Corp.*		96,497
	2,500	The Houston Exploration Co.*		72,500
	3,900	Vintage Petroleum, Inc.		46,410
	4,400	Western Gas Resources, Inc.		164,560
				507,541
Entertainment – 0.4%
	11,400	Handleman Co.*		165,300
	900	Six Flags, Inc.*		13,005
	4,800	World Wrestling Federation Entertainment, Inc.*		70,080
				248,385
Environmental Services – 0.4%
	7,700	Casella Waste Systems, Inc.*		92,477
	3,100	Ionics, Inc.*		75,175
	2,200	Stericycle, Inc.*		77,902
				245,554
Financial Services – 1.2%
	3,800	Actrade Financial Technologies Ltd.*		39,596
	2,700	Brown & Brown		85,050
	5,000	Clark/Bardes, Inc.*		114,200
	3,200	Credit Acceptance Corp.*		40,224
	800	Federal Agricultural Mortgage Corp. Class C*		21,360
	20,200	Fremont General Corp.		84,436
	2,000	FTI Consulting, Inc.*		70,020
	13,100	Insignia Financial Group, Inc.*		127,332
	6,600	Metris Companies, Inc.		54,846
	2,000	National Processing, Inc.*		51,600
	600	New Century Financial Corp.		20,982
				709,646
Food & Beverage – 2.4%
	7,600	Corn Products International, Inc.		236,512
	800	Dole Food Co., Inc.		23,080
	4,500	Fleming Companies, Inc.		81,649
	2,000	Flowers Foods, Inc.*		51,700
	2,000	Green Moutain Coffee, Inc.*		42,420
	3,700	International Multifoods Corp.*		96,200
	7,400	Interstate Bakeries Corp.		213,712
	1,100	J & J Snack Foods Corp.*		49,456
	5,400	Performance Food Group Co.*		182,844
	9,300	Pilgrim’s Pride Corp.		130,200
	2,500	Ralcorp Holdings, Inc.*		78,125

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

18

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

Shares		Description	Value
Common Stocks – (continued)
Food & Beverage – (continued)
	2,500	Smithfield Foods, Inc.*	$	46,375
	2,500	Spartan Stores, Inc.*		7,525
	500	SUPERVALU, INC.		12,265
	2,700	The J.M. Smucker Co.		92,151
	2,600	United Natural Foods, Inc.*		51,220
				1,395,434
Forest – 1.7%
	3,100	Chesapeake Corp.		81,623
	1,800	Greif Bros. Corp.		60,050
	3,800	Ivex Packaging Corp.*		86,526
	6,600	Longview Fibre Co.*		62,172
	4,600	Louisiana-Pacific Corp.*		48,714
	4,000	Pope & Talbot, Inc.		74,920
	3,300	Rock-Tenn Co.		60,555
	4,200	Schweitzer-Mauduit International, Inc.		103,320
	8,500	United Stationers, Inc.*		258,400
	5,500	Universal Forest Products, Inc.		128,810
				965,090
Gas Utilities – 1.7%
	4,700	Aquila, Inc.		37,600
	3,500	Cascade Natural Gas Corp.		73,150
	500	Northwest Natural Gas Co.		14,375
	7,500	NorthWestern Corp.		127,125
	2,200	NUI Corp.		60,500
	21,400	ONEOK, Inc.		469,730
	4,000	South Jersey Industries, Inc.		135,000
	1,800	UGI Corp.		57,492
				974,972
Grocery – 0.9%
	2,800	Ruddick Corp.		47,488
	25,900	The Great Atlantic & Pacific Tea Co., Inc.*		484,071
				531,559
Heavy Electrical – 1.2%
	8,000	Belden, Inc.		166,720
	9,300	Cable Design Technologies Corp.*		95,325
	800	Cummins Engine Co., Inc.		26,480
	2,900	EMCOR Group, Inc.*		170,230
	5,400	General Cable Corp.		34,020
	3,400	LSI Industries, Inc.		62,458
	700	Thomas & Betts Corp.*		13,020
	2,600	Woodward Governor Co.		153,712
				721,965
Heavy Machinery – 1.5%
	16,700	AGCO Corp.*		325,650
	4,800	JLG Industries, Inc.		67,344
	2,700	NACCO Industries, Inc.		156,870
	6,500	Terex Corp.*		146,185
	7,800	Trinity Industries, Inc.		161,616
				857,665
Home Products – 0.7%
	2,100	Alberto-Culver Co. Class B		100,380
	5,900	Church & Dwight Co., Inc.		184,847
	4,600	The Dial Corp.		92,092
				377,319
Hotels – 0.8%
	14,200	FelCor Lodging Trust, Inc.		260,570
	600	Hospitality Properties Trust		21,900
	12,400	MeriStar Hospitality Corp.		189,100
				471,570
Industrial Parts – 4.8%
	10,200	A.O. Smith Corp.		318,342
	4,300	Applied Films Corp.*		48,461
	8,300	Applied Industrial Technologies, Inc.		161,850
	2,200	Briggs & Stratton Corp.		84,348
	2,500	CoorsTek, Inc.*		77,275
	5,700	ESCO Technologies, Inc.*		199,500
	15,400	Hughes Supply, Inc.		691,460
	5,400	Kaman Corp.		90,504
	5,300	Kennametal, Inc.		193,980
	16,500	Lennox International, Inc.		296,835
	2,400	Lindsay Manufacturing Co.		55,560
	3,100	Lufkin Industries, Inc.		89,497
	4,900	Milacron, Inc.		49,735
	2,000	Nordson Corp.		49,320
	1,400	Nortek, Inc.*		63,140
	800	Pentair, Inc.		38,464
	1,600	SPS Technologies, Inc.*		61,072
	2,600	Tecumseh Products Co.		138,008
	4,000	The Timken Co.		89,320
				2,796,671
Industrial Services – 2.5%
	3,800	Corinthian Colleges, Inc.*		128,782
	6,100	Corrections Corp. of America*		105,530
	5,400	Dollar Thrifty Automotive Group, Inc.*		139,860
	7,200	EGL, Inc.*		122,112
	400	Harsco Corp.		15,000
	9,700	ITT Educational Services, Inc.*		211,460
	10,100	Kforce, Inc.*		60,095
	10,200	Labor Ready, Inc.*		59,670
	18,000	MPS Group, Inc.*		153,000
	2,900	Rent-A-Center, Inc.*		168,229
	2,600	Right Management Consultants, Inc.*		68,377
	16,900	Spherion Corp.*		201,110
	600	United Rentals, Inc.*		13,080
				1,446,305
Information Services – 3.4%
	5,600	Allscripts Heathcare Solutions, Inc.*		20,944
	4,600	American Management Systems, Inc.*		87,906
	5,400	Arbitron, Inc.*		168,480
	500	CACI International, Inc.*		19,095

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

19

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

Statement of Investments (continued)

June 30, 2002 (Unaudited)

Shares		Description	Value
Common Stocks – (continued)
Information Services – (continued)
	1,600	Cognizant Technology Solutions Corp.*	$	85,931
	2,300	CoStar Group, Inc.*		47,219
	3,100	Daktronics, Inc.*		30,504
	1,500	FactSet Research Systems, Inc.		44,655
	1,700	Fidelity National Information Solutions, Inc.*		40,800
	9,080	Global Payments, Inc.		270,130
	4,700	Lightbridge, Inc.*		38,587
	1,500	MICROS Systems, Inc.*		41,565
	5,400	PEC Solutions, Inc.*		129,168
	8,250	Pegasus Systems, Inc.*		144,375
	3,800	Perot Systems Corp.*		41,382
	8,800	Pre-Paid Legal Services, Inc.*		175,120
	8,500	PRG-Schultz International, Inc.*		104,635
	1,200	SOURCECORP, Inc.*		31,800
	3,100	StarTek, Inc.*		82,894
	9,100	Stewart Enterprises, Inc.*		57,967
	2,100	Symyx Technologies, Inc.*		29,232
	4,000	TeleTech Holdings, Inc.*		38,160
	1,600	The Advisory Board Co.*		57,984
	1,400	The Corporate Executive Board Co.*		47,950
	5,000	The TriZetto Group, Inc.*		42,750
	3,200	Watson Wyatt & Co. Holdings*		77,504
				1,956,737
Internet – 1.9%
	6,500	DoubleClick, Inc.*		48,230
	8,600	EarthLink, Inc.*		57,792
	2,300	F5 Networks, Inc.*		22,494
	7,100	FreeMarkets, Inc.*		100,323
	7,800	Inet Technologies, Inc.*		52,650
	6,100	Internet Security Systems, Inc.*		79,770
	2,900	j2 Global Communications, Inc.*		47,647
	8,100	Macromedia, Inc.*		71,847
	3,100	NetFlix, Inc.*		43,369
	8,800	Overture Services, Inc.*		214,720
	18,300	Priceline.com, Inc.*		50,270
	10,900	SonicWall, Inc.*		54,718
	4,500	United Online, Inc.*		54,090
	4,100	Vastera, Inc.*		17,999
	5,400	Verity, Inc.*		59,900
	22,300	Vitria Technology, Inc.*		21,408
	3,500	WebEx Communications, Inc.*		55,650
	7,000	webMethods, Inc.*		68,999
				1,121,876
Leisure – 1.3%
	3,600	Aztar Corp.*		74,880
	1,200	Brunswick Corp.		33,600
	400	Churchill Downs, Inc.		16,132
	3,400	Concord Camera Corp.*		17,343
	5,690	Dover Downs Gaming & Entertainment, Inc.		72,832
	3,800	Fossil, Inc.*		78,128
	1,200	GTECH Holdings Corp.*		30,648
	2,700	JAKKS Pacific, Inc.*		47,817
	5,000	Multimedia Games, Inc.*		109,050
	1,100	SCP Pool Corp.*		30,536
	5,100	The Nautilus Group, Inc.*		156,060
	3,200	Ticketmaster Class B*		59,872
				726,898
Life Insurance – 0.5%
	700	AmerUs Group Co.		25,970
	2,500	Delphi Financial Group, Inc.		106,370
	1,300	National Western Life Insurance Co.*		149,435
				281,775
Media – 1.4%
	4,200	ADVO, Inc.*		159,894
	900	Cumulus Media, Inc.*		12,402
	3,400	Hearst-Argyle Television, Inc.*		76,670
	2,300	Insight Communications, Inc.*		27,991
	2,300	Media General, Inc.		138,000
	16,400	Sinclair Broadcast Group, Inc.*		238,784
	3,400	The Liberty Corp.		135,490
				789,231
Medical Products – 2.7%
	3,300	Arrow International, Inc.		128,865
	1,700	Henry Schein, Inc.*		75,650
	2,100	INAMED Corp.*		56,847
	4,600	Intuitive Surgical, Inc.*		38,962
	7,800	Magellan Health Services, Inc.*		7,800
	2,200	NDCHealth Corp.		61,380
	2,100	Ocular Sciences, Inc.*		55,650
	12,700	Owens & Minor, Inc.		250,952
	25,200	PSS World Medical, Inc.*		204,120
	4,700	Respironics, Inc.*		160,035
	2,700	SangStat Medical Corp.*		62,046
	7,900	STERIS Corp.*		150,969
	6,000	Varian Medical Systems, Inc.*		197,700
	2,100	Ventana Medical Systems, Inc.*		46,095
	3,600	VISX, Inc.*		39,240
				1,536,311
Medical Providers – 1.3%
	12,500	Beverly Enterprises, Inc.*		95,125
	5,900	Coventry Health Care, Inc.*		167,678
	4,100	Dynacq International, Inc.*		57,769
	9,400	Gentiva Health Services, Inc.		84,506
	1,500	Kindred Healthcare, Inc.*		66,945
	2,100	Mid Atlantic Medical Services, Inc.*		65,835
	3,400	PacifiCare Health Systems, Inc.*		92,480
	2,000	RehabCare Group, Inc.*		48,060
	13,500	Service Corp. International*		65,205
				743,603
Mining – 2.5%
	800	Ball Corp.		33,184
	2,200	Cleveland-Cliffs, Inc.*		60,720

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

20

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

Shares		Description	Value
Common Stocks – (continued)
Mining – (continued)
	11,500	Crown Cork & Seal Co., Inc.*	$	78,775
	2,900	Maverick Tube Corp.*		43,500
	6,300	Owens-Illinois, Inc.*		86,562
	7,800	Quanex Corp.		340,860
	4,500	Reliance Steel & Aluminum Corp.		137,250
	13,000	RTI International Metals, Inc.*		157,950
	2,100	Texas Industries, Inc.		66,129
	7,500	United States Steel Corp.		149,175
	31,000	USEC, Inc.		272,800
	2,500	Worthington Industries, Inc.		45,250
				1,472,155
Motor Vehicle – 1.6%
	4,000	Circuit City Stores, Inc. - CarMax Group*		86,600
	1,000	Cooper Tire & Rubber Co.		20,550
	5,804	Dura Automotive Systems, Inc.*		120,433
	1,400	Group 1 Automotive, Inc.*		53,410
	3,100	Oshkosh Truck Corp.		183,241
	900	Thor Industries, Inc.		64,134
	10,100	United Auto Group, Inc.*		211,090
	11,600	Visteon Corp.		164,720
				904,178
Office Industrial – 2.0%
	7,500	Brandywine Realty Trust		194,250
	4,700	Corporate Office Properties Trust		68,573
	6,700	EastGroup Properties, Inc.		171,520
	9,600	Glenborough Realty Trust, Inc.		227,520
	4,900	Keystone Property Trust		77,763
	4,900	Kilroy Realty Corp.		131,075
	7,400	PS Business Parks, Inc.		258,630
				1,129,331
Oil Refining – 0.5%
	3,900	Headwaters, Inc.*		61,425
	3,300	Plains Resources, Inc.*		88,275
	20,900	Tesoro Petroleum Corp.*		161,975
				311,675
Oil Services – 1.9%
	1,500	Atwood Oceanics, Inc.*		56,250
	2,100	Cal Dive International, Inc.*		46,200
	1,400	CARBO Ceramics, Inc.		51,730
	7,600	Global Industries Ltd.*		53,124
	13,600	Key Energy Services, Inc.*		142,800
	6,200	Oceaneering International, Inc.*		167,400
	2,900	Offshore Logistics, Inc.*		69,281
	17,800	Parker Drilling Co.*		58,206
	3,600	TETRA Technologies, Inc.*		95,580
	7,800	Universal Compression Holdings, Inc.*		187,122
	11,700	Veritas DGC, Inc.*		147,420
				1,075,113
Other REIT – 2.5%
	9,600	Anthracite Capital, Inc.		127,200
	400	Apartment Investment & Management Co.		19,680
	1,000	AvalonBay Communities, Inc.		46,700
	300	Camden Property Trust		11,109
	2,500	Capital Automotive REIT		59,650
	7,200	Capstead Mortgage Corp.		162,000
	2,300	Correctional Properties Trust		50,600
	2,100	FBR Asset Investment Corp.		70,035
	1,600	First Industrial Realty Trust, Inc.		52,560
	1,000	General Growth Properties, Inc.		51,000
	8,100	Healthcare Realty Trust, Inc.		259,200
	2,400	Highwoods Properties, Inc.		62,400
	9,000	HRPT Properties Trust		79,650
	2,900	iStar Financial, Inc.		82,650
	600	Kimco Realty Corp.		20,094
	5,100	National Health Investors, Inc.		81,600
	2,100	Prime Group Realty Trust*		13,671
	900	Public Storage, Inc.		33,390
	4,200	Redwood Trust, Inc.		132,300
	800	Regency Centers Corp.		23,720
				1,439,209
Property Insurance – 1.9%
	400	Allmerica Financial Corp.		18,480
	13,800	First American Corp.		317,400
	4,600	Harleysville Group, Inc.		127,512
	7,100	LandAmerica Financial Group, Inc.		223,650
	2,700	PMA Capital Corp.		57,105
	4,200	The Commerce Group, Inc.		166,110
	3,500	The Midland Co.		176,645
				1,086,902
Publishing – 2.1%
	13,000	American Greetings Corp.*		216,580
	4,500	Banta Corp.		161,550
	3,800	Consolidated Graphics, Inc.*		72,037
	2,800	John H. Harland Co.		78,960
	7,900	Mail-Well, Inc.*		41,080
	3,600	Paxar Corp.*		60,300
	3,900	Pulitzer, Inc.		202,410
	3,500	The McClatchy Co.		224,875
	5,400	The Standard Register Co.		184,626
				1,242,418
Railroads – 0.1%
	3,500	Kansas City Southern*		59,500
Real Estate Services – 0.1%
	2,000	Jones Lang LaSalle, Inc.*		49,400
Restaurants – 1.7%
	2,500	AFC Enterprises, Inc.*		78,125
	2,100	Bob Evans Farms, Inc.		66,108
	4,700	CBRL Group, Inc.		143,444
	900	Darden Restaurants, Inc.		22,230
	2,800	Jack in the Box, Inc.*		89,040

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

21

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

Statement of Investments (continued)

June 30, 2002 (Unaudited)

Shares		Description	Value
Common Stocks – (continued)
Restaurants – (continued)
	5,200	Landry’s Restaurants, Inc.	$	132,652
	9,300	Lone Star Steakhouse & Saloon, Inc.		219,387
	1,000	Panera Bread Co.*		34,750
	4,700	Ruby Tuesday, Inc.		91,180
	9,400	Ryan’s Family Steak Houses, Inc.*		124,174
				1,001,090
Retail – 1.2%
	13,300	Amli Residential Properties Trust		345,800
	6,700	CBL & Associates Properties, Inc.		271,350
	4,300	JDN Realty Corp.		53,750
				670,900
Securities/Asset Management – 1.7%
	6,100	BlackRock, Inc.*		270,230
	2,500	Gabelli Asset Management, Inc.*		91,250
	1,400	Jefferies Group, Inc.		58,940
	29,100	Knight Trading Group, Inc.*		152,484
	2,700	R&G Financial Corp. Class B		64,017
	14,300	The John Nuveen Co.		367,510
				1,004,431
Semiconductors – 2.3%
	9,000	Arrow Electronics, Inc.*		186,750
	10,650	Avnet, Inc.*		234,194
	7,700	Bell Microproducts Inc.*		61,985
	11,100	ChipPAC, Inc.*		68,598
	4,300	Cohu, Inc.		74,304
	10,600	ESS Technology, Inc.*		185,924
	6,500	Exar Corp.*		127,901
	300	Fairchild Semiconductor Corp.*		7,290
	6,900	Genesis Microchip, Inc.*		57,249
	800	hi/fn, inc.*		4,800
	1,900	JNI Corp.*		6,650
	4,500	Oak Technology, Inc.*		20,385
	7,000	PLX Technology, Inc.*		29,750
	4,600	Rainbow Technologies, Inc.*		22,632
	5,900	SanDisk Corp.*		72,906
	7,700	Silicon Image, Inc.*		47,124
	2,400	Silicon Laboratories, Inc.*		67,176
	6,600	Silicon Storage Technology, Inc.*		51,480
				1,327,098
Specialty Retail – 3.0%
	3,900	1-800-FLOWERS.COM, Inc.*		43,524
	5,600	Big Lots, Inc.*		110,208
	7,000	Brown Shoe Co., Inc.		196,700
	500	Dollar Tree Stores, Inc.*		19,705
	3,600	Guitar Center, Inc.*		66,780
	7,100	Hollywood Entertainment Corp.*		146,828
	7,900	Insight Enterprises, Inc.*		199,001
	2,300	Longs Drug Stores Corp.		65,067
	4,600	Michaels Stores, Inc.*		179,400
	3,575	Movie Gallery, Inc.*		75,504
	39,700	OfficeMax, Inc.*		233,833
	9,900	PETsMART, Inc.*		157,905
	900	Pier 1 Imports, Inc.		18,900
	6,900	Rent-Way, Inc.*		89,355
	600	School Specialty, Inc.*		15,936
	3,500	Sonic Automotive, Inc.*		90,125
	500	Zale Corp.*		18,125
				1,726,896
Telephone – 1.0%
	19,200	Broadwing, Inc.*		49,920
	2,500	Commonwealth Telephone Enterprises, Inc.*		100,600
	4,500	Dycom Industries, Inc.*		52,605
	17,900	IDT Corp.*		302,868
	2,900	Intrado, Inc.*		56,144
				562,137
Thrifts – 0.9%
	6,400	BankUnited Financial Corp.*		124,096
	4,000	Capitol Federal Financial		104,320
	7,300	IndyMac Bancorp, Inc.*		165,564
	7,000	Staten Island Bancorp, Inc.		134,400
				528,380
Tobacco – 0.2%
	3,900	Universal Corp.		143,130
Truck Freight – 1.9%
	22,200	Airborne, Inc.		426,240
	1,500	J.B. Hunt Transport Services, Inc.*		44,280
	1,400	Landstar System, Inc.*		149,590
	600	Overseas Shipholding Group		12,648
	2,500	Roadway Corp.		89,825
	4,000	Ryder System, Inc.		108,360
	8,100	Yellow Corp.*		262,440
				1,093,383
Wireless – 0.2%
	6,800	Alamosa Holdings, Inc.*		9,588
	12,600	American Tower Corp.*		43,470
	4,400	Boston Communications Group, Inc.*		35,376
	8,600	US Unwired, Inc.*		24,080
				112,514
TOTAL COMMON STOCKS
(Cost $55,066,110)			$	57,915,959

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

22

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

Principal		Interest			Maturity
Amount		Rate			Date		Value
Repurchase Agreement – 0.4%
Joint Repurchase Agreement Account^
$	200,000		1.96	%		07/01/2002	$	200,000
TOTAL REPURCHASE AGREEMENT
(Cost $200,000)							$	200,000
TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL
(Cost $55,266,110)							$	58,115,959

Shares		Description	Value
Securities Lending Collateral – 2.3%
	1,346,900	Boston Global Investment Trust – Enhanced Portfolio	$	1,346,900
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,346,900)			$	1,346,900
TOTAL INVESTMENTS
(Cost $56,613,010)			$	59,462,859

*	Non-income producing security.
^	Joint repurchase agreement was entered into on June 28, 2002.

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

Investment Abbreviation:
REIT	—	Real Estate Investment Trust

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

23

 GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Shareholder Letter

Dear Shareholders:

This report provides an overview on the performance of the Goldman Sachs Variable Insurance Trust — Capital Growth Fund for the six-month period that ended June 30, 2002.

Market Review

During the reporting period it continued to be a challenging environment for U.S. large-cap growth managers. There exists a stark disconnect between the health of the economy and the relative strength of the stock market. In the past, investors have believed that stock price movement could be a leading indicator of the future state of the economy. Over the past few months, the fragile geopolitical state, coupled with skepticism of corporate accounting practices, have led investors to place a higher risk premium on U.S. equities. While in the short term this continued discrepancy could lead to irrationally low stock price levels, we strongly believe that high quality U.S. businesses will be favorably recognized over a longer period of time.

Performance Review

Over the six-month period that ended June 30, 2002, the Fund generated a -16.81% cumulative total return. Over the same time period the Fund’s benchmark, the Standard & Poor’s 500 Index (with dividends reinvested) generated a -13.16% cumulative total return.

The Fund’s underperformance relative to the benchmark was largely due to its overweight in the Media & Communications area. In addition, the Fund was negatively impacted by its holdings in the Cyclicals sector. On the other hand, the Fund was helped by its overweight in the Consumer Staples group.

The Fund’s Media & Communications holdings suffered a difficult stretch, as the market questioned the timing of an advertising turnaround. In addition, Media & Communications companies have recently been closely scrutinized for their use of the EBITDA (earnings before interest, tax, depreciation and amortization) method of accounting, following the scandal at WorldCom. While it is appropriate to place a severe discount on companies that use EBITDA in conjunction with the manipulation of accounting figures, we believe that it is irrational to have businesses with clean accounting practices included in this group. Nonetheless, several of the Fund’s investments in this space saw their stock prices plummet. However, it’s important to note that there is a clear difference between business leaders who practice fraudulent accounting and those who use EBITDA to reflect the true value of their business.

General Electric Co. and Tyco International Ltd., both within the Cyclicals sector, detracted from results over the six-month period. In recent months large conglomerates have been forced to make their businesses more transparent to investors. This is a direct result of the prevailing cynicism surrounding companies that pursue acquisition strategies or have multiple business lines. The news stories and allegations against Tyco’s senior management impaired its ability to do business, which lowered the value of its franchise. This weakened our confidence in the company, and thus, we completely eliminated the position.

24

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND 

The Fund benefited from its overweight in the Consumer Staples sector. It’s quite likely that businesses in this particular area have been rewarded for their relatively less complex financial statements. Consumer Staples businesses typically sell smaller ticket items, particularly in the household products, personal care, and food/beverage industries. Many of these firms exhibit the characteristics we seek in high quality growth companies, such as established brand names and pricing power. In addition, companies in this group that sell goods overseas were helped by the weakening U.S. dollar.

Investment Objective

The Fund seeks long-term growth of capital, primarily through investments in a diversified portfolio of companies that the Fund’s investment advisor believes to have long-term capital appreciation potential.

Portfolio Composition

Top 10 Portfolio Holdings as of June 30, 2002*

		% of Total
Company	Line of Business	Net Assets
Microsoft Corp.	Computer Software		4.7	%
SPDR Trust Series 1	Other		4.3
Exxon Mobil Corp.	Energy Resources		3.6
Wal-Mart Stores, Inc.	Department Stores		3.6
Pfizer, Inc.	Drugs		3.4
General Electric Co.	Financial Services		2.9
Viacom, Inc. Class B	Entertainment		2.7
PepsiCo, Inc.	Food & Beverage		2.4
Federal National Mortgage Association	Financial Services		2.3
Citigroup, Inc.	Banks		2.3

* 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. Furthermore, the value of shares of the Fund may fall as well as rise.

25

 GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Shareholder Letter (continued)

Outlook

There have been recent indications that point to a modest recovery in the growth of the U.S. economy. However, this has been in stark contrast to the continued decline in U.S. equities. A number of exogenous variables have been working against companies and, as such, they have not seen their intrinsic values recognized by investors. These variables include the unsettled geopolitical situation, corporate accounting fraud, and threats of domestic terrorism. In general, we believe U.S. economic growth should continue to be gradual, with corporate investment still lagging other areas of the economy. With interest rates at historically low levels, we expect business leaders to boost investment accordingly.

As always, we will seek to invest in dominant franchise companies that we believe should come out of a recession with improved competitive positions. Additionally, strong operational leverage in these particular companies should lead to positive earnings performance as economic activity increases. Although there are factors that will continue to weigh on the market, going forward we anticipate that robust business growth will eventually be reflected in equity valuations.

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

Goldman Sachs Growth Equity Management Team

July 8, 2002

26

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND 

Performance Summary

June 30, 2002 (Unaudited)

The following graph shows the value as of June 30, 2002, 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 June 30, 2002.

	Since Inception	One Year	Six Months(a)
Average Annual Total Return through June 30, 2002
Capital Growth Fund (commenced April 30, 1998)	-1.37%	-23.39%		-16.81%

(a)  Not annualized

27

 GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Statement of Investments

June 30, 2002 (Unaudited)

Shares		Description	Value
Common Stocks – 94.5%
Banks – 5.9%
	2,900	Bank of America Corp.	$	204,044
	10,033	Citigroup, Inc.		388,779
	4,900	State Street Corp.		219,030
	1,400	The Bank of New York Co., Inc.		47,250
	3,100	Wells Fargo & Co.		155,186
				1,014,289
Biotechnology – 0.5%
	2,000	Amgen, Inc.*		83,760
Brokers – 0.3%
	1,200	Merrill Lynch & Co., Inc.		48,600
Chemicals – 0.8%
	2,967	E.I. du Pont de Nemours & Co.		131,735
Computer Hardware – 2.8%
	18,200	Cisco Systems, Inc.*		253,890
	6,200	Dell Computer Corp.*		162,068
	8,600	EMC Corp.*		64,930
				480,888
Computer Software – 7.8%
	2,400	International Business Machines Corp.		172,800
	3,400	Intuit, Inc.*		169,048
	15,000	Microsoft Corp.*		811,800
	5,500	Oracle Corp.*		52,085
	3,500	Sabre Holdings Corp.*		125,300
				1,331,033
Defense/Aerospace – 0.9%
	1,300	Honeywell International, Inc.		45,799
	900	Lockheed Martin Corp.		62,550
	900	Raytheon Co.		36,675
				145,024
Drugs – 9.9%
	6,400	Bristol-Myers Squibb Co.		164,480
	4,000	Eli Lilly & Co.		225,600
	6,500	Johnson & Johnson		339,690
	2,700	Merck & Co., Inc.		136,728
	16,775	Pfizer, Inc.		587,125
	2,000	Schering-Plough Corp.		49,200
	3,900	Wyeth		199,680
				1,702,503
Energy Resources – 6.0%
	900	Anadarko Petroleum Corp.		44,370
	700	Apache Corp.		40,236
	15,284	Exxon Mobil Corp.		625,421
	5,600	Royal Dutch Petroleum Co. ADR		309,512
				1,019,539
Entertainment – 0.2%
	2,900	Metro-Goldwyn-Mayer, Inc.*		33,930
Environmental Services – 0.2%
	1,500	Waste Management, Inc.		39,075
Financial Services – 6.2%
	6,100	Federal Home Loan Mortgage Corp.		373,320
	5,300	Federal National Mortgage Association		390,875
	7,700	MBNA Corp.		254,639
	400	SLM Corp.		38,760
				1,057,594
Food & Beverage – 5.1%
	8,490	PepsiCo, Inc.		409,218
	4,900	The Coca-Cola Co.		274,400
	3,500	Wm. Wrigley Jr. Co.		193,725
				877,343
Forest – 1.0%
	2,600	International Paper Co.		113,308
	1,000	Weyerhaeuser Co.		63,850
				177,158
Heavy Electrical – 0.8%
	1,100	3M Co.		135,300
Home Products – 4.7%
	1,900	Avon Products, Inc.		99,256
	5,200	Colgate-Palmolive Co.		260,260
	4,400	Energizer Holdings, Inc.*		120,648
	1,000	Kimberly-Clark Corp.		62,000
	1,800	The Gillette Co.		60,966
	2,300	The Procter & Gamble Co.		205,390
				808,520
Hotels – 5.0%
	14,500	Cendant Corp.*		230,260
	7,100	Harrah’s Entertainment, Inc.*		314,885
	4,500	Marriott International, Inc.		171,225
	4,400	Starwood Hotels & Resorts Worldwide, Inc.		144,716
				861,086
Industrial Parts – 3.2%
	17,000	General Electric Co.		493,850
	900	United Technologies Corp.		61,110
				554,960
Information Services – 3.0%
	1,300	Automatic Data Processing, Inc.		56,615
	6,400	First Data Corp.		238,080
	3,100	TMP Worldwide, Inc.*		66,650
	4,000	Valassis Communications, Inc.*		146,000
				507,345

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

28

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND 

Shares		Description	Value
Common Stocks – (continued)
Media – 7.4%
	16,450	AOL Time Warner, Inc.*	$	241,979
	3,425	Cablevision Systems Corp.-Rainbow Media Group*		29,969
	3,152	Clear Channel Communications, Inc.*		100,927
	1,400	Cox Communications, Inc.*		38,570
	4,700	EchoStar Communications Corp.*		87,232
	13,500	Liberty Media Corp. Series A*		135,000
	5,500	Univision Communications, Inc.*		172,700
	10,272	Viacom, Inc. Class B*		455,769
				1,262,146
Mining – 0.3%
	1,700	Alcoa, Inc.		56,355
Motor Vehicle – 0.5%
	3,387	Ford Motor Co.		54,192
	702	General Motors Corp.		37,522
				91,714
Oil Refining – 1.4%
	2,654	ChevronTexaco Corp.		234,879
Oil Services – 0.6%
	2,300	Schlumberger Ltd.		106,950
Property Insurance – 3.6%
	4,500	AMBAC Financial Group, Inc.		302,400
	4,600	American International Group, Inc.		313,858
				616,258
Publishing – 1.0%
	500	Gannett Co., Inc.		37,950
	2,400	The New York Times Co.		123,600
				161,550
Restaurants – 0.7%
	4,200	McDonald’s Corp.		119,490
Securities/Asset Management – 0.9%
	1,000	Morgan Stanley		43,080
	10,450	The Charles Schwab Corp.		117,040
				160,120
Semiconductors – 2.4%
	13,200	Intel Corp.		241,164
	2,000	Intersil Corp.*		42,760
	4,000	Texas Instruments, Inc.		94,800
	1,500	Xilinx, Inc.*		33,645
				412,369
Specialty Retail – 6.7%
	1,300	Family Dollar Stores, Inc.		45,825
	1,500	Lowe’s Companies, Inc.		68,100
	5,650	The Home Depot, Inc.		207,525
	11,100	Wal-Mart Stores, Inc.		610,611
	5,700	Walgreen Co.		220,191
				1,152,252
Telephone – 1.7%
	5,700	SBC Communications, Inc.		173,850
	3,028	Verizon Communications, Inc.		121,574
				295,424
Thrifts – 0.2%
	1,000	Washington Mutual, Inc.		37,110
Tobacco – 1.3%
	5,100	Philip Morris Companies, Inc.		222,768
Wireless – 1.5%
	9,600	Crown Castle International Corp.*		37,728
	6,680	QUALCOMM, Inc.*		183,633
	7,300	Sprint Corp. (PCS Group)*		32,631
				253,992
TOTAL COMMON STOCKS
(Cost $20,156,818)			$	16,193,059
Exchange Traded Fund – 4.3%
	7,428	SPDR Trust Series 1	$	735,075
TOTAL EXCHANGE TRADED FUND
(Cost $857,855)			$	735,075

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

29

 GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Statement of Investments (continued)

June 30, 2002 (Unaudited)

Principal		Interest			Maturity
Amount		Rate			Date		Value
Repurchase Agreement – 1.7%
Joint Repurchase Agreement Account^
$	300,000		1.96	%		07/01/2002	$	300,000
TOTAL REPURCHASE AGREEMENT
(Cost $300,000)							$	300,000
TOTAL INVESTMENTS
(Cost $21,314,673)							$	17,228,134

   *  Non-income producing security.

   ^   Joint repurchase agreement was entered into on June 28, 2002.

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

Investment Abbreviation:

ADR — American Depositary Receipt

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

30

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND 

Shareholder Letter

Dear Shareholders:

This report provides an overview on the performance of the Goldman Sachs Variable Insurance Trust — Mid Cap Value Fund for the six-month period that ended June 30, 2002.

Market Review

The first half of 2002 was marked by a defensive mood, as the markets absorbed the shock of escalating violence in the Middle East and its impact on oil prices. Furthermore, the market was characterized by investor skepticism brought on by corporate earnings disappointments, apprehension of further disturbing accounting news, and fear of additional terrorist attacks. Companies with challenging cash flow outlooks suffered severely, as investors showed an unwillingness to stand by those businesses that overbuilt capacity in recent years and now face extreme competitive pricing issues.

In market declines such as the one we have recently seen, investors often sell for emotional reasons, which usually results in valuations declining within industries as investors engage in the market equivalent of “throwing out the baby with the bath water.” As prepared investors, it is during these times that we seek to upgrade our portfolios, as higher quality companies become available to us at very attractive prices. The Value team avoided some of the market’s major “torpedoes,” which we attribute to our strong research governance. We adhere to a principle of not compromising on our fundamental research process, which can help us to put only quality names into our portfolios. In summary, we will continue to emphasize balance sheet quality, cash flow stability, and companies with superior management teams.

Performance Review

Over the six-month period that ended June 30, 2002, the Fund generated a 6.64% cumulative total return. Over the same time period, the Fund’s benchmark, the Russell Midcap Value Index (with dividends reinvested) generated a 2.86% 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, has been well founded during the challenging investing environment in 2002.

The Fund’s strongest returns were in the Consumer Staples, Financials, and Energy sectors. The Fund’s largest holding was also its top performer — Pioneer Natural Resources Co. Pioneer, an oil and gas exploration and production company, benefited from its positive returns from new wells. In the Consumer Staples sector, Fortune Brands, Inc. and ConAgra Foods, Inc. enhanced results. ConAgra, the second largest U.S. food producer, performed well in the first half of 2002. The company enjoys strong cash flow generation and its management continues to reduce capital expenditures. Among the most decentralized and active acquirers, ConAgra is attempting to reduce costs and centralize more functions. We believe the company will benefit from its potential to divest its less profitable, commodity-oriented businesses.

Technology stocks, such as Arrow Electronics, Inc., were the main detractors from performance over the period. This poor performance has occurred as many technology

31

 GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Shareholder Letter (continued)

companies experienced declines in sales, due to a slowdown in demand. In addition, Arrow Electronics’ stock suffered after the resignation of its CEO.

The Fund eliminated its position in Archer Daniels Midland Co. during the period. Although the company reported a better than usual quarter, we became concerned with management actions and uncertainty surrounding allegations that it was fixing prices for ethanol. Since management integrity cannot be compromised in our portfolios, we sold the stock. A new position in the Fund is PartnerRe Ltd., a multi-line reinsurance company, that we felt was selling at a discount to its peers. We feel the management team is very efficient and disciplined about their capital allocation. In addition, PartnerRe spreads its risk among different businesses and its management team is very focused on maintaining a sustainable return on equity.

Investment Objective

The Fund seeks long-term growth of capital, primarily through equity securities of companies that the Fund’s investment adviser believes to have long-term capital appreciation potential.

Portfolio Composition

Top 10 Portfolio Holdings as of June 30, 2002*

		% of Total Net Assets
Company	Business
Pioneer Natural Resources Co.	Energy Resources		2.5	%
Ocean Energy, Inc.	Energy Resources		2.3
SUPERVALU, INC.	Food & Beverage		2.3
Energy East Corp.	Electrical Utilities		2.3
ConAgra Foods, Inc.	Food & Beverage		2.0
Republic Services, Inc.	Environmental Services		1.9
KeyCorp	Banks		1.9
FirstEnergy Corp.	Electrical Utilities		1.7
Harrah’s Entertainment, Inc.	Hotels		1.7
KeySpan Corp.	Gas Utilities		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. Furthermore, the value of shares of the Fund may fall as well as rise.

Outlook

We expect continued market volatility as we move into the second half of the year, fueled by concerns over earnings, further accounting issues, and fear of terrorism. We believe the best way to navigate through an uncertain market is through good fundamental research — you must know what you own. In-depth financial analysis and understanding the numbers is absolutely essential in this environment, and we believe we’re particularly well suited to identify these opportunities. Our team is structured around “centers of excellence,” whereby each team member has industry/sector specific responsibility. Not only does this provide

32

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND 

more in extensive industry expertise, but also allows each member to be more focused in our search for undervalued situations.

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

Goldman Sachs Value Portfolio Management Team

July 8, 2002

33

 GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Performance Summary

June 30, 2002 (Unaudited)

The following graph shows the value as of June 30, 2002, 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 June 30, 2002.

	Since Inception	One Year	Six Months(a)
Average Annual Total Return through June 30, 2002
Mid Cap Value Fund (commenced May 1, 1998)	7.29%	10.97%		6.64%

(a)  Not annualized

34

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND 

Statement of Investments

June 30, 2002 (Unaudited)

Shares		Description	Value
Common Stocks – 96.2%
Airlines – 0.4%
	11,710	JetBlue Airways Corp.*	$	533,508
	54,534	Southwest Airlines Co.		881,269
				1,414,777
Apartments – 0.8%
	40,004	Archstone-Smith Trust		1,068,107
	66,897	Equity Residential Properties Trust		1,923,289
				2,991,396
Apparel – 1.3%
	125,809	Jones Apparel Group, Inc.*		4,717,837
Banks – 8.7%
	84,457	Banknorth Group, Inc.		2,197,571
	94,771	Charter One Financial, Inc.		3,258,227
	98,709	Comerica, Inc.		6,060,733
	254,377	KeyCorp		6,944,492
	34,307	M&T Bank Corp.		2,942,168
	144,287	SouthTrust Corp.		3,768,777
	166,570	Wilmington Trust Corp.		5,080,385
	38,312	Zions Bancorp.		1,996,055
				32,248,408
Brokers – 0.7%
	42,161	The Bear Stearns Companies, Inc.		2,580,253
Chemicals – 2.6%
	88,487	Eastman Chemical Co.		4,150,040
	84,002	Potash Corp. of Saskatchewan, Inc.		5,602,934
				9,752,974
Clothing – 2.5%
	143,800	Ross Stores, Inc.		5,859,850
	178,771	The TJX Companies, Inc.		3,505,699
				9,365,549
Computer Hardware – 1.9%
	225,909	Apple Computer, Inc.*		4,003,107
	103,075	KEMET Corp.*		1,840,920
	24,407	Zebra Technologies Corp.*		1,176,906
				7,020,933
Computer Software – 1.1%
	60,943	Symantec Corp.*		2,001,977
	36,902	Synopsys, Inc.*		2,022,599
				4,024,576
Construction – 1.1%
	98,435	Clayton Homes, Inc.		1,555,273
	101,606	D.R. Horton, Inc.		2,644,804
				4,200,077
Consumer Durables – 1.2%
	147,868	Herman Miller, Inc.		3,001,720
	36,143	The Stanley Works		1,482,225
				4,483,945
Defense/Aerospace – 1.1%
	148,527	Rockwell Collins, Inc.		4,072,610
Department Stores – 1.4%
	90,040	Federated Department Stores, Inc.*		3,574,588
	46,205	The May Department Stores Co.		1,521,531
				5,096,119
Drugs – 0.5%
	60,113	Mylan Labs, Inc.		1,884,543
Electrical Equipment – 0.5%
	15,169	SPX Corp.*		1,782,357
Electrical Utilities – 7.1%
	78,260	Constellation Energy Group, Inc.		2,296,148
	370,456	Energy East Corp.		8,372,306
	52,121	Entergy Corp.		2,212,015
	191,539	FirstEnergy Corp.		6,393,572
	72,388	FPL Group, Inc.		4,342,556
	83,963	PPL Corp.		2,777,496
				26,394,093
Energy Resources – 5.5%
	36,803	Amerada Hess Corp.		3,036,247
	390,068	Ocean Energy, Inc.		8,452,774
	350,588	Pioneer Natural Resources Co.*		9,132,817
				20,621,838
Environmental Services – 1.9%
	365,601	Republic Services, Inc.*		6,972,011
Financial Services – 1.5%
	115,956	Countrywide Credit Industries, Inc.		5,594,877
Food & Beverage – 4.8%
	274,761	ConAgra Foods, Inc.		7,597,142
	61,827	Interstate Bakeries Corp.		1,785,564
	341,861	SUPERVALU, INC.		8,385,850
				17,768,556
Forest – 3.3%
	164,474	Packaging Corp. of America*		3,271,388
	119,553	Plum Creek Timber Co., Inc.		3,670,277
	186,239	Sonoco Products Co.		5,274,288
				12,215,953
Gas Utilities – 1.7%
	164,519	KeySpan Corp.		6,194,140
Heavy Machinery – 0.9%
	150,747	Terex Corp.*		3,390,300
Home Products – 2.0%
	94,994	Fortune Brands, Inc.		5,319,664
	57,340	The Estee Lauder Companies, Inc.		2,018,368
				7,338,032

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

35

 GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Statement of Investments (continued)

June 30, 2002 (Unaudited)

Shares		Description	Value
Common Stocks – (continued)
Hotels – 3.9%
	140,886	Harrah’s Entertainment, Inc.*	$	6,248,294
	130,143	Hilton Hotels Corp.		1,808,988
	104,199	Hospitality Properties Trust		3,803,263
	82,368	Starwood Hotels & Resorts Worldwide, Inc.		2,709,084
				14,569,629
Industrial Parts – 5.3%
	72,964	American Standard Companies, Inc.*		5,479,596
	29,466	Eaton Corp.		2,143,651
	194,384	Pall Corp.		4,033,468
	106,569	Parker-Hannifin Corp.		5,092,933
	58,500	Pentair, Inc.		2,812,680
				19,562,328
Information Services – 0.3%
	54,088	IMS Health, Inc.		970,880
Life Insurance – 0.9%
	111,164	The Principal Financial Group, Inc.*		3,446,084
Media – 0.5%
	45,770	Lamar Advertising Co.*		1,703,102
Medical Providers – 3.6%
	153,030	Health Management Associates, Inc.*		3,083,555
	190,510	Humana, Inc.*		2,977,671
	133,774	Manor Care, Inc.*		3,076,802
	84,916	Universal Health Services, Inc. Class B*		4,160,884
				13,298,912
Mining – 0.8%
	48,504	Nucor Corp.		3,154,700
Motor Vehicle – 2.4%
	98,615	Delphi Automotive Systems Corp.		1,301,718
	27,139	Johnson Controls, Inc.		2,214,814
	47,278	Lear Corp.*		2,186,607
	233,694	Visteon Corp.		3,318,455
				9,021,594
Office Industrial – 2.3%
	156,813	Duke-Weeks Realty Corp.		4,539,736
	112,974	Liberty Property Trust		3,954,090
				8,493,826
Oil Services – 2.0%
	92,443	Noble Corp.*		3,568,300
	89,025	Weatherford International Ltd.*		3,845,880
				7,414,180
Other REIT – 0.8%
	39,068	Health Care Property Investors, Inc.		1,676,017
	51,369	iStar Financial, Inc.		1,464,017
				3,140,034
Property Insurance – 6.5%
	26,254	AMBAC Financial Group, Inc.		1,764,269
	106,822	Aon Corp.		3,149,113
	175,923	Old Republic International Corp.		5,541,574
	103,255	PartnerRe Ltd.		5,054,332
	101,317	RenaissanceRe Holdings Ltd.		3,708,202
	148,455	Willis Group Holdings Ltd.*		4,885,654
				24,103,144
Publishing – 2.0%
	153,222	A.H. Belo Corp.		3,464,349
	84,822	Dow Jones & Co., Inc.		4,109,626
				7,573,975
Railroads – 0.6%
	33,478	Burlington Northern Santa Fe Corp.		1,004,340
	21,144	Canadian National Railway Co.		1,095,259
				2,099,599
Restaurants – 2.0%
	65,135	CBRL Group, Inc.		1,987,920
	144,530	Darden Restaurants, Inc.		3,569,891
	61,154	Yum! Brands, Inc.*		1,788,755
				7,346,566
Retail – 0.4%
	45,646	Simon Property Group, Inc.		1,681,599
Security/Asset Management – 1.1%
	125,912	T. Rowe Price Group, Inc.		4,139,987
Semiconductors – 1.3%
	64,137	Arrow Electronics, Inc.*		1,330,843
	141,703	Fairchild Semiconductor Corp.*		3,443,383
				4,774,226
Specialty Retail – 1.0%
	211,427	Toys ’R’ Us, Inc.*		3,693,630
Thrifts – 2.0%
	88,862	GreenPoint Financial Corp.		4,363,124
	210,130	Sovereign Bancorp, Inc.		3,141,444
				7,504,568
Tobacco – 1.1%
	123,310	UST, Inc.		4,192,540

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

36

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND 

Shares		Description	Value
Common Stocks – (continued)
Truck Freight – 0.9%
	52,179	Ryder System, Inc.	$	1,413,529
	94,104	Werner Enterprises, Inc.		2,005,356
				3,418,885
TOTAL COMMON STOCKS
(Cost $332,258,236)			$	357,430,142

Principal		Interest			Maturity
Amount		Rate			Date		Value
Repurchase Agreement – 2.6%
Joint Repurchase Agreement Account^
$	9,700,000		1.96	%		07/01/2002	$	9,700,000
TOTAL REPURCHASE AGREEMENT
(Cost $9,700,000)							$	9,700,000
TOTAL INVESTMENTS
(Cost $341,958,236)							$	367,130,142

   *  Non-income producing security.

   ^   Joint repurchase agreement was entered into on June 28, 2002.

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

Investment Abbreviation:

REIT—Real Estate Investment Trust

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

37

 GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Shareholder Letter

Dear Shareholders:

This report provides an overview on the performance of the Goldman Sachs Variable Insurance Trust — International Equity Fund for the six-month period that ended June 30, 2002.

Market Overview

There were several key themes driving the international equity markets during the first half of 2002. The predominant theme at a macro level was of global economic recovery, with many leading economic indicators rising significantly throughout the period. The second theme was a general sense of investor unease in the aftermath of the Enron collapse. Investors focused heavily on the reliability of accounting information. Under this unsure corporate environment, companies that surprised the market with negative news and pre-announcements were heavily punished and, in several cases, this presented opportunities for investors to take advantage of the market’s over-reaction.

Tied to this issue was a continued focus on the high levels of outstanding corporate debt. These concerns were exacerbated by the high profile bankruptcy of Global Crossing Ltd., a U.S. communications provider, and the continued efforts of NTL, Inc., a European media company, to restructure its current debt program. News towards the end of the period from WorldCom that it had capitalized operating expenses shook markets once again. As a result, investors have become increasingly skeptical regarding corporate accounting standards.

Performance Review

Over the six-month period that ended June 30, 2002, the Fund generated a -4.34% 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 -1.38%.

As these returns indicate, it has continued to be a challenging period in the financial markets. In this environment, defensive sectors continued to outperform at the expense of more economically sensitive cyclical sectors.

In terms of specific holdings, there were several stocks that generated notable results. For example, Bank of Ireland performed well, as it benefited from the strong Irish economy, which continues to show solid momentum. The firm’s management team has maintained its focus on its retail business, and its diversified asset management business demonstrates strong growth potential. Kao Corp., a Japanese household and chemical product producer, also enhanced results. The company’s strong performance was due to more positive Japanese consumer figures and the continued strength of the yen versus the U.S. dollar. Data continued to signal that Japanese consumer trends are beating expectations, a phenomenon that we believe is typical at this stage of the economic cycle. European Aeronautic Defence and Space Co. (EADS), a France-based aviation company that owns Airbus, also performed well. EADS was a beneficiary of the overall recovery in global passenger traffic. The market is now reacting to the increased probability that Airbus will meet its order target, which lies in the range of 300-325 planes for this year. We remain optimistic regarding the company’s prospects and remain very comfortable with its management team.

38

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND 

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 June 30, 2002*

			% of Total
Company	Country	Business	Net Assets
GlaxoSmithKline PLC	United Kingdom	Drugs		4.8	%
Novartis AG	Switzerland	Health		4.8
Total Fina Elf SA Class B	France	Energy Resources		4.0
Vodafone Group PLC	United Kingdom	Wireless		3.6
VNU NV	Netherlands	Media		3.5
Bank of Ireland	Ireland	Banks		3.3
UniCredito Italiano SpA	Italy	Banks		3.2
Takeda Chemical Industries Ltd.	Japan	Drugs		2.9
Tesco PLC	United Kingdom	Specialty Retail		2.9
BNP Paribas SA	France	Banks		2.3

* 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. Furthermore, the value of shares of the Fund may fall as well as rise.

Outlook

Reviewing the broad investment landscape, we believe that economic fundamentals remain sound. The most likely scenario remains that we will see some economic recovery during the second half of the year. Though the recovery may be more tepid than we’ve been expecting, the chance of a double-dip recession is remote, particularly given the absence of the sort of banking crisis that undid the United States in the early 90s and Japan for the entire decade. Although precise opinions differ, the steam has undoubtedly come out of equity market valuations, which now look compelling relative to bonds in any historical context. Although this doesn’t necessarily indicate the direction of the markets over the next three months, it should be reassuring for long-term investors.

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

Goldman Sachs International Equity Portfolio Management Team

July 8, 2002

39

 GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Performance Summary

June 30, 2002 (Unaudited)

The following graph shows the value as of June 30, 2002, of a $10,000 investment made on January 12, 1998 (commencement of operations). For comparative purposes, the performance of the Fund’s benchmark, Morgan Stanley Capital International Europe, Australasia and Far East Index (“MSCI EAFE (unhedged)”) 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.

International Equity Fund’s Lifetime Performance

Growth of a $10,000 investment, Distributions Reinvested from January 12, 1998 to June 30, 2002.

	Since Inception	One year	Six Months(a)
Average Annual Total Return through June 30, 2002
International Equity Fund (commenced January 12, 1998)	0.49%	-12.57%		-4.34%

(a)  Not annualized

40

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND 

Statement of Investments

June 30, 2002 (Unaudited)

Shares		Description	Value
Common Stocks – 96.7%
Australia – 0.4%
	33,147	Insurance Australia Group Ltd. (Insurance)	$	58,790
Denmark – 0.4%
	1,656	Group 4 Falck A/S (Business Services)		57,142
Finland – 1.9%
	21,965	Nokia Oyj (Telecommunications)		320,883
France – 10.1%
	7,012	BNP Paribas SA (Banks)		387,076
	4,541	Business Objects SA ADR* (Business Services)		127,602
	22,499	European Aeronautic Defence & Space Co. (Aerospace/Defense)		345,318
	1,672	Lafarge SA (Construction)		166,473
	4,058	Total Fina Elf SA Class B (Energy Resources)		657,629
				1,684,098
Germany – 2.2%
	2,447	Bayerische Motoren Werke (BMW) AG (Auto)		99,163
	2,714	SAP AG (Computer Software)		265,526
				364,689
Hong Kong – 0.5%
	7,200	Hang Seng Bank Ltd. (Banks)		76,849
Ireland – 4.3%
	11,605	Allied Irish Banks PLC (Banks)		152,605
	44,525	Bank of Ireland (Banks)		552,964
				705,569
Italy – 6.1%
	10,500	ENI SpA (Energy Resources)		166,641
	24,500	Mediaset SpA (Media)		189,343
	17,315	Telecom Italia SpA (Telecommunications)		135,351
	117,000	UniCredito Italiano SpA (Banks)		528,224
				1,019,559
Japan – 18.4%
	4,000	Canon, Inc. (Computer Hardware)		151,170
	7,000	Chugai Pharmaceutical Co. Ltd. (Health)		83,744
	23	Dentsu, Inc. (Specialty Retail)		126,834
	9,000	Fuji Photo Film Co. Ltd. (Leisure)		290,577
	7,800	Honda Motor Co. Ltd. (Auto)		316,256
	14,000	Isetan Co. Ltd. (Retail-Major Department Store)		141,326
	9,000	Kao Corp. (Consumer Products)		207,233
	37,000	Mitsui O.S.K. Lines Ltd. (Transportation-Shipping)		77,787
	1,000	NGK INSULATORS LTD. (Multi-Industrial)		7,917
	6,000	Nomura Holdings, Inc. (Financial Services)		88,099
	18,000	RICOH CO. LTD (Computer Hardware)		311,601
	10,000	Sharp Corp. (Electrical Equipment)		126,976
	8,000	Shin-Etsu Chemical Co. Ltd. (Chemicals)		343,720
	3,000	SKYLARK CO. LTD (Restaurants)		70,079
	1,000	Sumitomo Corp. (Wholesale)		6,057
	2,000	Sumitomo Mitsui Banking Corp. (Commercial Banks)		9,761
	11,000	Takeda Chemical Industries Ltd. (Drugs)		482,710
	19,000	Tokyo Gas Co. Ltd. (Energy Resources)		52,784
	6,300	Toppan Forms Co. Ltd. (Publishing)		106,432
	2,300	Toyota Motor Corp. (Auto)		61,019
				3,062,082
Korea – 1.4%
	5,200	Hyundai Motor Co. Ltd. GDR (Auto)		78,000
	1,100	Samsung Electronics Co. Ltd. GDR† (Electronic Components & Instruments)		151,030
				229,030
Mexico – 1.9%
	144,300	Grupo Financiero BBVA Bancomer SA de CV Series O* (Financial Services)		117,645
	1,900	Grupo Televisa SA ADR* (Media)		71,022
	4,100	Telefonos de Mexico SA de CV ADR (Telecommunications)		131,528
				320,195
Netherlands – 7.9%
	12,862	ASM Lithography Holding NV* (Semiconductors)		203,240
	2,033	Gucci Group (Apparel)		190,383
	10,729	ING Groep NV (Financial Services)		274,979
	321	Royal Dutch Petroleum Co. (Energy Resources)		17,846
	3,790	Vedior NV (Business Services)		52,304
	20,750	VNU NV (Media)		575,584
				1,314,336
Russia – 0.4%
	500	YUKOS ADR (Energy Resources)		69,500

The accompanying notes are an integral part of these financial statements.      41

 GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Statement of Investments (continued)

June 30, 2002 (Unaudited)

Shares		Description	Value
Common Stocks – (continued)
Singapore – 3.0%
	77,000	Chartered Semiconductor Manufacturing Ltd.* (Electronic Components & Instruments)	$	156,943
	42,000	Keppel Corp. Ltd. (Financial Services)		97,970
	33,000	United Overseas Bank Ltd. (Banks)		237,282
				492,195
Spain – 2.2%
	8,267	Industria de Diseno Textil SA* (Apparel)		174,230
	3,751	Sogecable SA* (Media)		71,214
	14,759	Telefonica de Espana SA* (Telecommunications)		123,664
				369,108
Sweden – 3.3%
	4,462	Eniro AB (Metals-Non Ferrous)		34,147
	9,656	Securitas AB Series B (Business Services)		198,103
	70,024	Skandia Forsakrings (Insurance)		317,728
				549,978
Switzerland – 9.7%
	4,639	Adecco SA (Business Services)		274,950
	4,744	Converium Holding AG* (Insurance)		244,595
	1,282	Nestle SA (Food & Beverage)		298,259
	18,117	Novartis AG (Health)		795,010
				1,612,814
Taiwan – 0.5%
	6,600	Taiwan Semiconductor Manufacturing Co. Ltd. ADR (Electronic Components & Instruments)		85,800
United Kingdom – 22.1%
	15,174	Amey PLC (Business Services)		41,527
	30,348	Amvescap PLC (Financial Services)		247,314
	27,571	British Sky Broadcasting Group PLC* (Media)		264,407
	23,861	Capita Group PLC (Business Services)		113,505
	13,610	Exel PLC (Industrial Services)		173,370
	27,431	GlaxoSmithKline PLC (Drugs)		593,046
	4,859	GlaxoSmithKline PLC ADR (Drugs)		209,617
	104,984	International Power PLC* (Electrical Utilities)		268,907
	72,938	Legal & General Group PLC (Insurance)		145,401
	9,439	Reckitt Benckiser PLC (Food & Beverage)		169,384
	8,734	Royal Bank of Scotland Group PLC (Banks)		247,683
	8,029	Smiths Group PLC (Conglomerates)		104,297
	132,284	Tesco PLC (Specialty Retail)		481,023
	352,052	Vodafone Group PLC (Wireless)		483,081
	8,720	Vodafone Group PLC ADR (Wireless)		119,028
				3,661,590
TOTAL COMMON STOCKS
(Cost $17,719,639)			$	16,054,207

Principal		Interest			Maturity
Amount		Rate			Date		Value
Short-Term Obligation – 1.4%
State Street Bank & Trust Euro Time Deposit Δ
$	234,000		1.88	%		07/01/2002	$	234,000
TOTAL SHORT-TERM OBLIGATION
(Cost $234,000)							$	234,000
TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL
(Cost $17,953,639)							$	16,288,207

Shares		Description	Value
Securities Lending Collateral – 8.4%
	1,393,083	Boston Global Investment Trust – Enhanced Portfolio	$	1,393,083
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,393,083)			$	1,393,083
TOTAL INVESTMENTS
(Cost $19,346,722)			$	17,681,290

*	Non-income producing security.
†	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 $151,030 as of June 30, 2002.
Δ	A portion of this security is segregated as collateral for initial margin requirements on futures transactions.

Investment Abbreviation:
ADR	—	American Depositary Receipt
GDR	—	Global Depository Receipt

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND 

	As a % of
	Total
	Net Assets
Common Stock Industry Classifications
Aerospace/Defense		2.1	%
Apparel		2.2
Auto		3.3
Banks		13.1
Business Services		5.2
Chemicals		2.1
Commercial Banks		0.1
Computer Hardware		2.8
Computer Software		1.6
Conglomerates		0.6
Construction		1.0
Consumer Products		1.3
Drugs		7.7
Electrical Equipment		0.8
Electrical Utilities		1.6
Electronic Components & Instruments		2.4
Energy Resources		5.8
Financial Services		5.0
Food & Beverage		2.8
Health		5.3
Industrial Services		1.0
Insurance		4.6
Leisure		1.8
Media		7.1
Metals-Non Ferrous		0.2
Multi-Industrial		0.0
Publishing		0.6
Restaurants		0.4
Retail-Major Department Store		0.9
Semiconductors		1.2
Specialty Retail		3.7
Telecommunications		4.3
Transportation-Shipping		0.5
Wholesale		0.0
Wireless		3.6
TOTAL COMMON STOCK		96.7	%

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.      43

 GOLDMAN SACHS VARIABLE INSURANCE TRUST

Statements of Assets and Liabilities

June 30, 2002 (Unaudited)

		Growth and
		Income Fund
Assets:
Investment in securities, at value (identified cost $38,712,245, $172,062,827, $55,266,110, $21,314,673, $341,958,236 and $17,953,639, respectively)		$	38,834,747
Securities lending collateral, at value			—
Cash, at value(a)			88,109
Receivables:
	Investment securities sold		311,648
	Dividends and interest, at value		73,122
	Fund shares sold		2,109
	Forward foreign currency exchange contracts		—
	Variation margin		—
	Reimbursement from adviser		5,574
	Securities lending income		66
Deferred organization expenses, net			1,132
Other assets			1,180
Total assets			39,317,687
Liabilities:
Payables:
	Investment securities purchased		409,459
	Fund shares repurchased		168,418
	Amounts owed to affiliates		25,846
	Payable upon return of securities loaned		—
	Forward foreign currency exchange contracts		—
	Variation margin		—
Accrued expenses and other liabilities			36,881
Total liabilities			640,604
Net Assets:
Paid-in capital			45,677,190
Accumulated undistributed net investment income			294,326
Accumulated net realized gain (loss) on investment, futures and foreign currency related transactions			(7,416,935	)
Net unrealized gain (loss) on investments, futures and translation of assets and liabilities denominated in foreign currencies			122,502
NET ASSETS		$	38,677,083
Total shares of beneficial interest outstanding, no par value (unlimited shares authorized)			4,324,411
Net asset value, offering and redemption price per share		$	8.94

(a)  Includes restricted cash of $850,000 and $310,000 for CORE U.S. Equity Fund and CORE Small Cap Equity Fund, respectively, relating to initial margin requirements on futures transactions.

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST 

CORE U.S.			CORE Small Cap			Capital			Mid Cap		International
Equity Fund			Equity Fund			Growth Fund			Value Fund		Equity Fund
$	153,754,814		$	58,115,959		$	17,228,134		$	367,130,142	$	16,288,207
	—			1,346,900			—			—		1,393,083
	945,261			379,674			21,569			72,503		87,527
	—			11,529,009			107,774			7,294,439		171,297
	131,045			42,850			14,306			353,848		49,468
	704,801			77,587			66,432			1,680,829		—
	—			—			—			—		165,086
	—			—			—			—		53,676
	—			8,785			9,186			—		22,249
	—			1,395			—			643		3,805
	1,378			1,378			2,035			2,284		3,424
	2,315			1,272			761			10,483		1,000
	155,539,614			71,504,809			17,450,197			376,545,171		18,238,822
	—			12,117,926			36,371			4,601,377		3,703
	329,705			114,071			232,981			16,415		61,374
	92,997			36,678			11,904			244,819		14,674
	—			1,346,900			—			—		1,393,083
	—			—			—			—		105,897
	3,305			460			—			—		—
	74,843			46,843			33,060			1,135		56,976
	500,850			13,662,878			314,316			4,863,746		1,635,707
	207,400,429			55,429,831			23,368,102			336,199,048		25,235,293
	366,393			32,696			10,614			1,659,307		61,991
	(34,399,778	)		(470,445	)		(2,156,296	)		8,651,164		(7,074,905	)
	(18,328,280	)		2,849,849			(4,086,539	)		25,171,906		(1,619,264	)
$	155,038,764		$	57,841,931		$	17,135,881		$	371,681,425	$	16,603,115
	16,512,396			5,275,439			2,001,019			30,883,030		1,929,771
$	9.39		$	10.96		$	8.56		$	12.04	$	8.60

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

 GOLDMAN SACHS VARIABLE INSURANCE TRUST

Statements of Operations

For the Six Months Ended June 30, 2002 (Unaudited)

		Growth and
		Income Fund
Investment income:
Dividends(a)		$	478,214
Interest (including securities lending income of $66, $305, $3,753, $10, $5,000 and $9,403, respectively)			17,225
Total income			495,439
Expenses:
Management fees			152,193
Custodian fees			40,015
Professional fees			15,303
Transfer agent fees			13,156
Printing fees			7,693
Trustee fees			4,239
Deferred organization expenses			2,054
Other			8,261
Total expenses			242,914
Less — expense reductions			(39,990	)
Net expenses			202,924
NET INVESTMENT INCOME			292,515
Realized and unrealized gain (loss) on investment, futures and foreign currency transactions:
Net realized gain (loss) from:
	Investment transactions		(2,061,109	)
	Futures transactions		—
	Foreign currency related transactions		—
Net change in unrealized gain (loss) on:
	Investments		8,632
	Futures		—
	Translation of assets and liabilities denominated in foreign currencies		—
Net realized and unrealized gain (loss) on investment, futures and foreign currency transactions			(2,052,477	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		$	(1,759,962	)

(a)  For the Growth and Income, CORE U.S. Equity, CORE Small Cap Equity, Capital Growth, Mid Cap Value, and International Equity Funds, foreign taxes withheld on dividends were $1,451, $7,545, $167, $702, $5,687 and $21,631, respectively.

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST 

CORE U.S.			CORE Small Cap			Capital			Mid Cap			International
Equity Fund			Equity Fund			Growth Fund			Value Fund			Equity Fund
$	1,059,834		$	306,322		$	92,687		$	2,840,148		$	178,950
	13,914			6,313			5,761			130,815			21,370
	1,073,748			312,635			98,448			2,970,963			200,320
	575,468			213,931			65,875			1,244,996			86,777
	30,727			83,684			39,396			21,962			117,991
	26,891			15,296			15,046			18,062			16,032
	13,059			13,185			13,182			8,511			13,179
	7,451			4,744			4,889			17,915			4,889
	5,397			4,239			4,239			5,397			4,239
	2,054			2,054			2,054			2,054			2,054
	53,867			8,118			5,105			1,091			9,193
	714,914			345,251			149,786			1,319,988			254,354
	(7,559	)		(60,010	)		(61,952	)		(8,332	)		(137,206	)
	707,355			285,241			87,834			1,311,656			117,148
	366,393			27,394			10,614			1,659,307			83,172
	(9,808,216	)		1,481,694			(963,261	)		8,222,742			(767,251	)
	(186,236	)		(39,785	)		—			—			(40,367	)
	—			—			—			—			117,941
	(15,339,626	)		(959,433	)		(2,331,183	)		7,488,474			(151,397	)
	(27,903	)		(1,695	)		—			—			(55,658	)
	—			—			—			—			48,288
	(25,361,981	)		480,781			(3,294,444	)		15,711,216			(848,444	)
$	(24,995,588	)	$	508,175		$	(3,283,830	)	$	17,370,523		$	(765,272	)

The accompanying notes are an integral part of these financial statements.      47

 GOLDMAN SACHS VARIABLE INSURANCE TRUST

Statements of Changes in Net Assets

For the Six Months Ended June 30, 2002 (Unaudited)

	Growth and
	Income Fund
From operations:
Net investment income	$	292,515
Net realized gain (loss) on investment, futures and foreign currency related transactions		(2,061,109	)
Net change in unrealized gain (loss) on investments, futures and translation of assets and liabilities denominated in foreign currencies		8,632
Net increase (decrease) in net assets resulting from operations		(1,759,962	)
From share transactions:
Proceeds from sales of shares		5,434,441
Cost of shares repurchased		(5,590,153	)
Net increase (decrease) in net assets resulting from share transactions		(155,712	)
TOTAL INCREASE (DECREASE)		(1,915,674	)
Net assets:
Beginning of period		40,592,757
End of period	$	38,677,083
Accumulated undistributed net investment income	$	294,326
Summary of share transactions:
Shares sold		581,105
Shares repurchased		(606,556	)
TOTAL INCREASE (DECREASE)		(25,451	)

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST 

CORE U.S.			CORE Small Cap			Capital			Mid Cap			International
Equity Fund			Equity Fund			Growth Fund			Value Fund			Equity Fund
$	366,393		$	27,394		$	10,614		$	1,659,307		$	83,172
	(9,994,452	)		1,441,909			(963,261	)		8,222,742			(689,677	)
	(15,367,529	)		(961,128	)		(2,331,183	)		7,488,474			(158,767	)
	(24,995,588	)		508,175			(3,283,830	)		17,370,523			(765,272	)
	22,220,006			6,604,445			6,146,624			129,758,037			1,913,704
	(6,090,091	)		(3,635,266	)		(1,992,474	)		(18,967,641	)		(2,318,573	)
	16,129,915			2,969,179			4,154,150			110,790,396			(404,869	)
	(8,865,673	)		3,477,354			870,320			128,160,919			(1,170,141	)
	163,904,437			54,364,577			16,265,561			243,520,506			17,773,256
$	155,038,764		$	57,841,931		$	17,135,881		$	371,681,425		$	16,603,115
$	366,393		$	32,696		$	10,614		$	1,659,307		$	61,991
	2,112,526			587,160			628,921			10,901,465			215,968
	(588,919	)		(327,266	)		(209,711	)		(1,592,504	)		(262,217	)
	1,523,607			259,894			419,210			9,308,961			(46,249	)

The accompanying notes are an integral part of these financial statements.      49

 GOLDMAN SACHS VARIABLE INSURANCE TRUST

Statements of Changes in Net Assets

For the Year Ended December 31, 2001

	Growth and
	Income Fund
From operations:
Net investment income (loss)	$	190,293
Net realized gain (loss) on investment, futures and foreign currency related transactions		(4,069,491	)
Net change in unrealized gain (loss) on investments, futures and translation of assets and liabilities denominated in foreign currencies		38,097
Net increase (decrease) in net assets resulting from operations		(3,841,101	)
Distributions to shareholders:
From net investment income		(192,388	)
From net realized gain on investment, futures and foreign currency related transactions		—
From tax return of capital		—
Total distributions to shareholders		(192,388	)
From share transactions:
Proceeds from sales of shares		13,288,998
Reinvestment of dividends and distributions		192,388
Cost of shares repurchased		(5,971,356	)
Net increase (decrease) in net assets resulting from share transactions		7,510,030
TOTAL INCREASE (DECREASE)		3,476,541
Net assets:
Beginning of year		37,116,216
End of year	$	40,592,757
Accumulated undistributed (distributions in excess of) net investment income	$	1,811
Summary of share transactions:
Shares sold		1,391,584
Shares issued on reinvestment of dividends and distributions		20,665
Shares repurchased		(650,969	)
TOTAL INCREASE (DECREASE)		761,280

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST 

CORE U.S.			CORE Small Cap			Capital			Mid Cap			International
Equity Fund			Equity Fund			Growth Fund			Value Fund			Equity Fund
$	724,755		$	117,087		$	22,343		$	2,119,489		$	111,277
	(21,543,051	)		(1,171,422	)		(1,116,432	)		7,597,234			(5,906,031	)
	1,697,455			3,044,583			(1,402,370	)		9,147,130			(411,101	)
	(19,120,841	)		1,990,248			(2,496,459	)		18,863,853			(6,205,855	)
	(737,656	)		(76,934	)		(26,444	)		(2,112,836	)		(175,062	)
	—			—			(53,974	)		(10,913,278	)		(60,696	)
	—			(74,291	)		—			—			(82,175	)
	(737,656	)		(151,225	)		(80,418	)		(13,026,114	)		(317,933	)
	55,342,887			18,234,164			9,588,008			161,692,684			7,631,321
	737,656			151,225			80,418			13,026,114			317,933
	(11,620,753	)		(6,421,071	)		(7,600,880	)		(38,692,901	)		(12,913,245	)
	44,459,790			11,964,318			2,067,546			136,025,897			(4,963,991	)
	24,601,293			13,803,341			(509,331	)		141,863,636			(11,487,779	)
	139,303,144			40,561,236			16,774,892			101,656,870			29,261,035
$	163,904,437		$	54,364,577		$	16,265,561		$	243,520,506		$	17,773,256
$	—		$	5,302		$	—		$	—		$	(21,181	)
	4,820,468			1,763,231			888,325			14,502,257			755,369
	67,487			14,160			7,787			1,175,647			35,965
	(1,062,345	)		(663,729	)		(702,136	)		(3,633,018	)		(1,299,233	)
	3,825,610			1,113,662			193,976			12,044,886			(507,899	)

The accompanying notes are an integral part of these financial statements.      51

 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					realized									In excess			From			From
	value,		Net			and			Total from			From net			of net			tax			net
	beginning		investment			unrealized			investment			investment			investment			return of			realized			Total
	of period		income			gain (loss)			operations			income			income			capital			gain			distributions
Growth and Income Fund
For the six months ended June 30, 2002 (unaudited)	$	9.33	$	0.07	(c)	$	(0.46	)	$	(0.39	)	$	—		$	—		$	—		$	—		$	—
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 six months ended June 30, 2002 (unaudited)		10.94		0.02	(c)		(1.57	)		(1.55	)		—			—			—			—			—
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 Small Cap Equity Fund
For the six months ended June 30, 2002 (unaudited)		10.84		0.01	(c)		0.11			0.12			—			—			—			—			—
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 six months ended June 30, 2002 (unaudited)		10.28		0.01	(c)		(1.73	)		(1.72	)		—			—			—			—			—
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 six months ended June 30, 2002 (unaudited)		11.29		0.06	(c)		0.69			0.75			—			—			—			—			—
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 six months ended June 30, 2002 (unaudited)		8.99		0.04	(c)		(0.43	)		(0.39	)		—			—			—			—			—
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	)

(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.

52     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						Ratio of
							net			net			Ratio of			net
Net					Net		expenses			investment			expenses			investment
asset					assets		to			income			to			income
value,					at end		average			to			average			(loss)			Portfolio
end of		Total			of period		net			average			net			to average			turnover
period		return(a)			(in 000s)		assets			net assets			assets			net assets			rate
$	8.94		(4.18	)%	$	38,677		1.00	%(b)		1.44	%(b)		1.20	%(b)		1.24	%(b)		52	%
	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
	9.39		(14.17	)		155,039		0.86	(b)		0.45	(b)		0.87	(b)		0.44	(b)		37
	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
	10.96		1.20			57,842		1.00	(b)		0.10	(b)		1.21	(b)		(0.11	) (b)		64
	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
	8.56		(16.81	)		17,136		1.00	(b)		0.12	(b)		1.71	(b)		(0.59	) (b)		7
	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
	12.04		6.64			371,681		0.84	(b)		1.07	(b)		0.85	(b)		1.06	(b)		46
	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
	8.60		(4.34	)		16,603		1.35	(b)		0.96	(b)		2.93	(b)		(0.62	) (b)		54
	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

The accompanying notes are an integral part of these financial statements.      53

 GOLDMAN SACHS VARIABLE INSURANCE TRUST

Notes to Financial Statements

June 30, 2002 (Unaudited)

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 Small Cap Equity Fund (“CORE Small Cap Equity”), Goldman Sachs Capital Growth Fund (“Capital Growth”), Goldman Sachs Mid Cap Value Fund (“Mid Cap Value”) and Goldman Sachs International Equity Fund (“International Equity”), collectively, “the Funds” or individually a “Fund”. Each Fund is diversified under the Act. On May 1, 2002, the Goldman Sachs CORE Large Cap Growth Fund, Goldman Sachs Global Income Fund and Goldman Sachs Internet Tollkeeper Fund were terminated.

     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, which approximates market value. Securities for which quotations are not readily available are valued at fair value using methods approved by the Board of Trustees. In addition, the impact of events that occur after the publication of market quotations used by a fund to price its securities but before the close of regular trading on the New York Stock Exchange will not be reflected in the Fund’s next determined NAV unless the Trust, in its discretion, determines to make an adjustment in light of the nature and significance of the event, consistent with applicable regulatory guidance.

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.

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.

54

GOLDMAN SACHS VARIABLE INSURANCE TRUST 

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

D. Deferred Organization Expenses — Organization-related costs are being amortized on a straight-line basis over a period of five years.

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 — The books and records of each Fund are maintained in U.S. dollars. Amounts denominated in foreign currencies are translated into U.S. dollars on the following basis: (i) investment valuations, foreign currency and other assets and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based 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 exchange gains and losses from the sale and holdings of foreign currencies; (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, dividends and foreign withholding taxes recorded and the amounts actually received. The effect of changes in foreign currency exchange rates on securities and derivative instruments are not segregated in the Statement of Operations from the effects of changes in market prices of those securities and derivative instruments, but are included with the net realized and unrealized gain or loss on securities and derivative instruments. Net unrealized foreign exchange gains and losses arising from changes in the value of other assets and liabilities as a result of changes in foreign exchange rates are included as increases and decreases in unrealized appreciation/depreciation on foreign currency related transactions.

G. 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, 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.

H. 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.

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 Small Cap Equity, Capital Growth and Mid Cap Value Funds. Goldman Sachs Asset Management International (“GSAMI”), an affiliate of Goldman Sachs, serves as the investment adviser for the International Equity Fund. 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:

55

 GOLDMAN SACHS VARIABLE INSURANCE TRUST

Notes to Financial Statements (continued)

June 30, 2002 (Unaudited)

3. AGREEMENTS (continued)

Fund	Fee
Growth and Income		0.75	%
CORE U.S. Equity		0.70
CORE Small Cap Equity		0.75
Capital Growth		0.75
Mid Cap Value		0.80
International Equity		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%, .25%, .25%, .25% and .35% of the average daily net assets of Growth and Income, CORE U.S. Equity, CORE Small Cap Equity, Capital Growth, Mid Cap Value and International Equity, 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. Effective September 1, 2002, the fees charged for such transfer agency services will be calculated daily exclusive of the “Other Expense” limitation and payable monthly at an annual rate of 0.04% of the average daily net assets of each Fund. Goldman Sachs serves as the distributor of each Fund’s shares at no cost to the Funds.

     For the six months ended June 30, 2002, 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	$	32	$	1	$	7	$	40
CORE U.S. Equity		—		1		7		8
CORE Small Cap Equity		52		1		7		60
Capital Growth		54		1		7		62
Mid Cap Value		—		1		7		8
International Equity		130		—		7		137

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GOLDMAN SACHS VARIABLE INSURANCE TRUST 

3. AGREEMENTS (continued)

     At June 30, 2002, the amounts owed to affiliates were as follows (in thousands):

	Management		Transfer Agent
Fund	Fees		Fees		Total
Growth and Income	$	25	$	1	$	26
CORE U.S. Equity		92		1		93
CORE Small Cap Equity		36		1		37
Capital Growth		11		1		12
Mid Cap Value		244		1		245
International Equity		14		1		15

4. PORTFOLIO SECURITY TRANSACTIONS

Cost of purchases and proceeds of sales and maturities of long-term securities for the six months ended June 30, 2002, were as follows:

			Sales and
Fund	Purchases		Maturities
Growth and Income	$	22,426,158	$	20,051,356
CORE U.S. Equity		76,390,196		59,874,523
CORE Small Cap Equity		40,561,414		36,279,484
Capital Growth		5,450,663		1,249,933
Mid Cap Value		247,819,105		139,285,943
International Equity		9,337,468		8,777,268

Forward Foreign Currency Exchange Contracts — Growth and Income, Capital Growth, Mid Cap Value and International Equity 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 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.

57

Notes to Financial Statements (continued)

June 30, 2002 (Unaudited)

 GOLDMAN SACHS VARIABLE INSURANCE TRUST

4. PORTFOLIO SECURITY TRANSACTIONS (continued)

At June 30, 2002, 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	7/19/2002	$	442,000	$	451,984	$	9,984	$	—
	7/19/2002		112,000		110,589		—		1,411
	7/24/2002		439,787		435,319		—		4,468
Canadian Dollar	7/19/2002		216,000		217,360		1,360		—
Danish Krone	7/24/2002		142,484		158,611		16,127		—
Euro Currency	7/19/2002		214,000		223,584		9,584		—
Hong Kong Dollar	9/11/2002		256,070		256,058		—		12
Japanese Yen	7/19/2002		434,000		450,850		16,850		—
	7/25/2002		713,140		739,004		25,864		—
Norwegian Krone	8/29/2002		86,897		92,769		5,872		—
Pound Sterling	7/17/2002		456,863		474,088		17,225		—
	7/19/2002		112,000		117,464		5,464		—
Swedish Krona	7/19/2002		656,000		705,527		49,527		—
TOTAL OPEN FOREIGN CURRENCY PURCHASE CONTRACTS		$	4,281,241	$	4,433,207	$	157,857	$	5,891

		Value on
Open Foreign Currency	Expiration	Settlement		Current		Unrealized		Unrealized
Sales Contracts	Date	Date		Value		Gain		Loss
Australian Dollar	7/19/2002	$	104,000	$	102,425	$	1,575	$	—
Canadian Dollar	7/19/2002		333,000		337,771		—		4,771
Danish Krone	7/24/2002		77,210		80,725		—		3,515
Euro Currency	7/19/2002		336,000		354,532		—		18,532
	7/29/2002		220,194		221,423		—		1,229
Hong Kong Dollar	9/11/2002		70,016		70,021		—		5
Japanese Yen	7/25/2002		190,017		188,004		2,013		—
Mexican Peso	7/11/2002		215,117		211,476		3,641		—
	7/11/2002		113,649		113,663		—		14
Pound Sterling	7/17/2002		45,857		47,351		—		1,494
	7/19/2002		311,000		316,310		—		5,310
Singapore Dollar	7/25/2002		383,774		393,905		—		10,131
Swedish Krona	8/12/2002		205,776		218,378		—		12,602
Swiss Franc	7/15/2002		252,064		269,677		—		17,613
	7/19/2002		443,000		467,790		—		24,790
TOTAL OPEN FOREIGN CURRENCY SALE CONTRACTS		$	3,300,674	$	3,393,451	$	7,229	$	100,006

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 June 30, 2002, the International Equity Fund had sufficient cash and/or securities to cover any commitments under these contracts.

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GOLDMAN SACHS VARIABLE INSURANCE TRUST 

4. PORTFOLIO SECURITY TRANSACTIONS (continued)

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. Futures contracts are valued at the last settlement price at the end of each day on the board of trade or exchange upon which they are traded. Upon entering into a futures contract, the Funds 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 June 30, 2002, the following futures contracts were open as follows:

		Number of
		Contracts		Settlement	Market		Unrealized
Fund	Type	Long		Month	Value		Gain (Loss)
CORE U.S. Equity	S & P 500 Index		6	September 2002	$	1,485,150	$	(20,267	)
International Equity	Eurex Deutschland 50		7	September 2002	$	217,841	$	(4,554	)
	Tokyo Stock Exchange		2	September 2002		170,108		(12,514	)
					$	387,949	$	(17,068	)

     For the six months ended June 30, 2002, 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	$	1,466
CORE U.S. Equity		890
CORE Small Cap Equity		220
Capital Growth		96
Mid Cap Value		22,462
International Equity		767

Securities Lending — Pursuant to exemptive relief granted by the SEC and the terms and conditions contained therein, the Funds may lend their securities through their agent, Boston Global Advisers (BGA) — a wholly owned subsidiary of Goldman Sachs, to certain qualified borrowers including Goldman Sachs. The loans are collateralized at all times with cash and/or securities with a market value at least equal to the securities on loan. As with other extensions of credit, the Funds bear the risk of delay on recovery or loss of rights in the collateral should the borrower of the securities fail financially.

     Both the Funds and BGA receive compensation relating to the lending of the Fund’s securities. The amounts earned by the Funds for the six months ended June 30, 2002, is reported parenthetically on the Statements of Operations. The table below details the following items as of June 30, 2002: 1) market value of the securities on loan by Funds, 2) the amount of cash collateral received for loan transactions, 3) BGA earnings as securities lending agent, 4) compensation earned by the

59

 GOLDMAN SACHS VARIABLE INSURANCE TRUST

Notes to Financial Statements (continued)

June 30, 2002 (Unaudited)

4. PORTFOLIO SECURITY TRANSACTIONS (continued)

Funds from lending its securities to Goldman Sachs and 5) the amount payable to Goldman Sachs upon return of securities loaned (collateral value). The Funds invest the cash collateral received in connection with securities lending transactions in the Enhanced Portfolio of Boston Global Investment Trust, a Delaware Business Trust. The Enhanced Portfolio is exempt from registration under Section 3(c)(7) of the Investment Company Act of 1940 and is managed by GSAM. The Enhanced Portfolio invests in high quality money market instruments. The Funds bear the risk of incurring a loss from the investment of cash collateral due to either credit or market factors.

							Earnings Received
			Cash Collateral		Earnings of BGA		From Lending to		Amount Payable to
	Market Value of		Received for Loans		Relating to Securities		Goldman Sachs for		Goldman Sachs
	Securities on loan as		Outstanding as of		Loaned for Six Months		Six Months Ended		Upon Return of
Fund	of June 30, 2002		June 30, 2002		Ended June 30, 2002		June 30, 2002		Securities Loaned
Growth and Income(a)	$	—	$	—	$	2	$	66	$	—
Core U.S. Equity(a)		—		—		54		—		—
CORE Small Cap Equity		1,247,698		1,346,900		662		91		—
Capital Growth(a)		—		—		2		—		—
Mid Cap Value(a)		—		—		882		386		—
International Equity		1,322,232		1,393,083		1,659		62		310,000

(a)  While there was lending activity during the six months ended June 30, 2002, there were no loans outstandings as of June 30, 2002.

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 June 30, 2002, the CORE U.S. Equity, CORE Small Cap Equity, Capital Growth and Mid Cap Value Funds had undivided interests in the repurchase agreements in the following joint account which equaled $700,000, $200,000, $300,000, and $9,700,000, respectively, in principal amount. At June 30, 2002, the following repurchase agreements held in this joint account were fully collateralized by Federal Agency obligations.

60

GOLDMAN SACHS VARIABLE INSURANCE TRUST 

5. JOINT REPURCHASE AGREEMENT ACCOUNT (continued)

	Principal		Interest			Maturity	Amortized		Maturity
Repurchase Agreements	Amount		Rate			Date	Cost		Value
Banc of America Securities LLC	$	800,000,000		1.98	%	07/01/2002	$	800,000,000	$	800,132,000
Barclays Capital, Inc.		500,000,000		1.96		07/01/2002		500,000,000		500,081,667
Bear Stearns Companies, Inc.		500,000,000		1.97		07/01/2002		500,000,000		500,082,083
JPM Securities, Inc.		1,500,000,000		1.96		07/01/2002		1,500,000,000		1,500,245,000
Credit Suisse First Boston Corp.		1,000,000,000		1.95		07/01/2002		1,000,000,000		1,000,162,500
Greenwich Capital Markets		500,000,000		1.98		07/01/2002		500,000,000		500,082,500
Lehman Brothers		500,000,000		1.97		07/01/2002		500,000,000		500,082,083
Morgan Stanley		2,000,000,000		1.94		07/01/2002		2,000,000,000		2,000,323,333
Salomon Smith Barney Holdings, Inc.		1,600,000,000		1.97		07/01/2002		1,600,000,000		1,600,262,667
UBS Warburg LLC		1,973,100,000		1.97		07/01/2002		1,973,100,000		1,973,423,917
TOTAL JOINT REPURCHASE AGREEMENT ACCOUNT							$	10,873,100,000	$	10,874,877,750

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 six months ended June 30, 2002, the Funds did not have any borrowings under this facility.

61

Notes to Financial Statements (continued)

June 30, 2002 (Unaudited)

 GOLDMAN SACHS VARIABLE INSURANCE TRUST

7. ADDITIONAL TAX INFORMATION

As of the most recent fiscal year end December 31, 2001, the capital loss carryforwards and certain timing differences on a tax basis were as follows:

	Growth and
	Income Fund
Timing differences (post October Losses)	$	(1,207,395	)
Capital loss carryforward		(3,584,131	)
Capital loss carryforward years of expiration		2006-2009

At June 30, 2002, the Funds’ aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes was as follows:

	Growth and
	Income Fund
Tax Cost	$	39,276,546
Gross unrealized gain		2,037,387
Gross unrealized loss		(2,479,186	)
Net unrealized security gain (loss)	$	(441,799	)

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

62

GOLDMAN SACHS VARIABLE INSURANCE TRUST 

CORE U.S.			CORE Small Cap			Capital			Mid Cap		International
Equity Fund			Equity Fund			Growth Fund			Value Fund		Equity Fund
$	(1,729,816	)	$	—		$	(164,335	)	$	—	$	(1,226,761	)
	(21,704,749	)		(1,791,908	)		(836,446	)		—		(4,728,640	)
	2008-2009			2009			2009			—		2009

CORE U.S.			CORE Small Cap			Capital			Mid Cap			International
Equity Fund			Equity Fund			Growth Fund			Value Fund			Equity Fund
$	173,025,952		$	55,381,911		$	21,506,926		$	342,667,054		$	18,383,466
	6,215,993			6,894,117			589,474			33,022,351			1,021,477
	(25,487,131	)		(4,160,069	)		(4,868,266	)		(8,559,263	)		(3,116,736	)
$	(19,271,138	)	$	2,734,048		$	(4,278,792	)	$	24,463,088		$	(2,095,259	)

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TRUSTEES	OFFICERS
Ashok N. Bakhru, Chairman	Gary D. Black, President
David B. Ford	James A. Fitzpatrick, Vice President
Patrick T. Harker	James A. McNamara, Vice President
Mary Patterson McPherson	John M. Perlowski, Treasurer
Alan A. Shuch	Howard B. Surloff, Secretary
Wilma J. Smelcer
Richard P. Strubel
Kaysie P. Uniake
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 Small Cap Equity, Capital Growth, Mid Cap Value and International Equity 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 2002 Goldman, Sachs & Co. All rights reserved. Date of first use: August 14, 2002