N-CSR

Investment Abbreviations:

Real Estate Investment Trust

N-CSR 1 e93432nvcsr.htm N-CSR N-CSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES

Investment Company Act file number 811-08361

Goldman Sachs Variable Insurance Trust

(Exact name of registrant as specified in charter)

4900 Sears Tower, Chicago, Illinois 60606-6303

(Address of principal executive offices) (Zip code)


Howard B. Surloff, Esq.		Copies to:
Goldman, Sachs & Co.		Jeffrey A. Dalke, Esq.
One New York Plaza		Drinker Biddle & Reath LLP
New York, New York 10004		One Logan Square
		18th and Cherry Streets
		Philadelphia, PA 19103

(Name and address of agents for service)

Registrant’s telephone number, including area code: (312) 655-4400

Date of fiscal year end: December 31

Date of reporting period: December 31, 2003


ITEM 1.		REPORTS TO STOCKHOLDERS.

		The Annual Report to Stockholders is filed herewith.

Goldman

Sachs Variable Insurance Trust

GOLDMAN SACHS ASSET MANAGEMENT, L.P. 32 OLD SLIP, NEW YORK, NEW YORK 10005

Annual Report

December 31, 2003

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 during the one-year reporting period that ended December 31, 2003.

Market Review

The U.S. equity markets generated strong results in 2003, ending the year in positive territory for the first time since 1999. All the major indices rose significantly, with the S&P 500 Index returning 28.69% and the technology-laden NASDAQ Composite Index soaring 50.01%, its third best year since its inception in 1971. Despite the war in Iraq, renewed terrorist fears, U.S. deficits, and a tumbling dollar, stock prices rose in nine out of the last ten months of the year. Rekindled investor confidence, an increased appetite for risk, and the anticipation of an economic rebound drove stock prices higher. The economy gained momentum during the year, with third quarter gross domestic product (“GDP”) rising 8.2% — its fastest level in two decades. The preliminary estimate for fourth quarter GDP was 4.0%, a solid gain, but somewhat lower than market expectations.

Investment Objective

The Fund seeks long-term growth of capital and growth of income.

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2003*


		% of
Company	Business	Net Assets

Citigroup, Inc.	Banks		4.2	%
Bank of America Corp.	Banks		4.0
Exxon Mobil Corp.	Energy Resources		3.5
ConocoPhillips	Energy Resources		2.9
Time Warner, Inc.	Media		2.7
U.S. Bancorp	Banks		2.2
Verizon Communications, Inc.	Telephone		2.2
ChevronTexaco Corp.	Energy Resources		2.0
Occidental Petroleum Corp.	Energy Resources		2.0
J.P. Morgan Chase & Co.	Banks		1.9

* 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. Fund holdings of stocks or bonds should not be relied on in making investment decisions and should not be construed as research or investment advice regarding particular securities. 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.

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Shareholder Letter (continued)

Performance Review

Over the one-year reporting period that ended December 31, 2003, the Fund generated a cumulative total return of 24.36%. Over the same time period, the Fund’s benchmark, the Standard & Poor’s 500 Index (with dividends reinvested) generated a cumulative total return of 28.69%.

While the Fund generated strong absolute performance during its fiscal year, it underperformed its benchmark, as 2003 was dominated by the strong rebound in higher risk, lower quality stocks. In contrast, we maintained our disciplined investment approach that calls for investing in those companies with good business models, high or improving return on invested capital, and quality managements. As such, we have not been surprised by the relative underperformance of the Fund in such a speculative market.

Some of the largest detractors to relative performance during the year have been attributable to the Fund’s underweight position in the Technology and Consumer Cyclical sectors. Positive economic news helped fuel stock price gains in these areas, particularly among more economically sensitive companies. With regard to Consumer Cyclicals, the Fund was particularly underweight Motor Vehicles, which hurt relative performance as many of these companies were up sharply. The Fund remains underexposed to this area due to unattractive industry issues. These include market share losses, unfunded retiree healthcare liabilities, and poor prospects for outperformance over time.

SBC Communications, Inc. was the largest negative contributor to performance in the Fund along with other names in the Services sector, such as AT&T and BellSouth. These companies experienced sharp declines due to deteriorating financial fundamentals and increasing pressures in the competitive environment. We eliminated AT&T from the portfolio early in the year due to concerns over increased competitive pressures.

Financial stocks led absolute performance in the Fund in 2003. Citigroup, Inc., the Fund’s largest holding, was also the top contributor to performance for the year. In particular, the portfolio benefited from its position in Countrywide Financial, U.S. Bancorp and Bank of America Corp. also posted impressive returns and aided both absolute and relative performance. The Fund’s holdings in the Energy sector also boosted relative performance, with holdings such as ConocoPhillips and Exxon Mobil Corp. generating strong results. We continue to favor Energy Resources companies over Oil Service stocks due to cash flow generation ability and valuation levels.

During the reporting period, we continued to emphasize and invest in companies that we believe represent quality. In our view, many of these emerging quality companies have both internal and external forces working in their favor. Thus, some of our favorite situations have been those where investment success does not depend on a single factor. Time Warner, Inc., a position we added to during the fourth quarter, is one example of a good franchise, saddled with an underperforming business unit for which management is taking corrective measures. The management team’s renewed focus on cutting costs and improving returns has revived the stock. Key initiatives include purging AOL’s unprofitable subscribers, decreasing network carriage costs, reducing headcount, and repairing the balance sheet. Following intense research and analysis, we found that Tyco’s new management team continues to resolve uncertainty in its business by simplifying operations, improving the company’s cost

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

structure, adopting stringent corporate governance policies, and exiting a number of non-core businesses.

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

Goldman Sachs Value Portfolio Management Team

January 15, 2004

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Performance Summary

December 31, 2003

The following graph shows the value as of December 31, 2003, 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 (with dividends reinvested) (“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. Performance reflects Fund level expenses but does not reflect fees and expenses associated with any variable annuity contract or variable life insurance policy that uses the Fund as an investment option for any contract or policy. Had performance reflected all of those fees and expenses, performance would have been reduced. In addition to the investment adviser’s decisions regarding issuer/industry/country investment selection and allocation, other factors may affect Fund performance. These factors include, but are not limited to, Fund operating fees and expenses, portfolio turnover, and subscription and redemption cash flows affecting a Fund.

Growth and Income Fund’s Lifetime Performance

Growth of a $10,000 Investment, Distributions Reinvested from January 12, 1998 to December 31, 2003.

(PERFORMANCE CHART)


	Since Inception	Five Years	One Year




Average Annual Total Return Through December 31, 2003




Growth and Income Fund (commenced January 12, 1998)	0.97%	0.09%	24.36%

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Statement of Investments

December 31, 2003



Shares		Description	Value
Common Stocks – 98.1%

Alcohol – 0.4%
	18,511	Anheuser-Busch Companies, Inc.	$	975,159

Apartment – 0.6%
	29,000	AvalonBay Communities, Inc.		1,386,200

Banks – 18.7%
	114,175	Bank of America Corp.		9,183,095
	30,324	Charter One Financial, Inc.		1,047,694
	196,990	Citigroup, Inc.		9,561,898
	121,630	J.P. Morgan Chase & Co.		4,467,470
	125,400	KeyCorp.		3,676,728
	10,407	M&T Bank Corp.		1,023,008
	45,500	National City Corp.		1,544,270
	23,800	North Fork Bancorporation, Inc.		963,186
	170,702	U.S. Bancorp.		5,083,506
	61,250	Wachovia Corp.		2,853,638
	62,832	Wells Fargo & Co.		3,700,176

				43,104,669

Brokers – 1.6%
	14,300	Lehman Brothers Holdings, Inc.		1,104,246
	22,932	Merrill Lynch & Co., Inc.		1,344,962
	20,600	Morgan Stanley		1,192,122

				3,641,330

Chemicals – 2.8%
	37,000	E.I. du Pont de Nemours & Co.		1,697,930
	63,800	Monsanto Co.		1,836,164
	78,670	Praxair, Inc.		3,005,194

				6,539,288

Computer Hardware – 2.1%
	40,500	CDW Corp.		2,339,280
	108,100	Hewlett-Packard Co.		2,483,057

				4,822,337

Computer Software – 2.2%
	123,000	Activision, Inc.*		2,238,600
	19,005	International Business Machines Corp.		1,761,383
	41,311	Microsoft Corp.		1,137,705

				5,137,688

Defense/ Aerospace – 2.1%
	18,900	ITT Industries, Inc.		1,402,569
	36,051	United Technologies Corp.		3,416,553

				4,819,122

Diversified Energy – 0.6%
	139,400	The Williams Companies, Inc.		1,368,908

Drugs – 2.7%
	28,100	Johnson & Johnson		1,451,646
	96,500	Pfizer, Inc.		3,409,345
	30,500	Wyeth		1,294,725

				6,155,716

Electrical Utilities – 6.5%
	21,800	Dominion Resources, Inc.		1,391,494
	120,993	Energy East Corp.		2,710,243
	60,012	Entergy Corp.		3,428,485
	45,705	Exelon Corp.		3,032,984
	50,253	FirstEnergy Corp.		1,768,906
	14,047	FPL Group, Inc.		918,955
	39,509	PPL Corp.		1,728,519

				14,979,586

Energy Resources – 11.7%
	55,000	Burlington Resources, Inc.		3,045,900
	54,100	ChevronTexaco Corp.		4,673,699
	100,400	ConocoPhillips		6,583,228
	195,233	Exxon Mobil Corp.		8,004,553
	107,200	Occidental Petroleum Corp.		4,528,128

				26,835,508

Environmental Services – 0.7%
	50,510	Waste Management, Inc.		1,495,096

Financial Services – 3.8%
	39,638	Countrywide Financial Corp.		3,006,542
	28,176	Fannie Mae		2,114,891
	35,085	Freddie Mac		2,046,157
	40,608	SLM Corp.		1,530,109

				8,697,699

Food & Beverage – 1.6%
	58,495	H.J. Heinz Co.		2,130,973
	48,100	Kraft Foods, Inc.		1,549,782

				3,680,755

Forest – 0.8%
	41,133	Bowater, Inc.		1,904,869

Health Insurance – 0.7%
	25,200	Aetna, Inc.		1,703,016

Heavy Machinery – 0.8%
	27,061	Deere & Co.		1,760,318

Home Products – 4.1%
	51,400	Avon Products, Inc.		3,468,986
	17,700	Colgate-Palmolive Co.		885,885
	26,900	The Clorox Co.		1,306,264
	37,855	The Procter & Gamble Co.		3,780,957

				9,442,092

Industrial Parts – 4.3%
	16,845	American Standard Companies, Inc.*		1,696,291
	28,700	Eaton Corp.		3,099,026
	60,700	General Electric Co.		1,880,486
	122,212	Tyco International Ltd.		3,238,618

				9,914,421

Information Services – 0.7%
	62,949	Accenture Ltd.*		1,656,818

Life Insurance – 0.8%
	57,500	MetLife, Inc.		1,936,025

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)

December 31, 2003



Shares		Description	Value
Common Stocks – (continued)

Media – 6.6%
	83,167	Fox Entertainment Group, Inc.*	$	2,424,318
	82,980	Hughes Electronics Corp.*		1,373,322
	75,000	Lamar Advertising Co.*		2,799,000
	346,600	Time Warner, Inc.*		6,235,334
	54,400	Viacom, Inc. Class B		2,414,272

				15,246,246

Medical Products – 1.4%
	104,051	Baxter International, Inc.		3,175,637

Mining – 0.6%
	35,804	Alcoa, Inc.		1,360,552

Office Industrial – 1.8%
	66,000	Duke Realty Corp.		2,046,000
	53,764	Liberty Property Trust		2,091,420

				4,137,420

Other REIT – 2.1%
	71,360	iStar Financial, Inc.		2,775,904
	34,900	Plum Creek Timber Co., Inc.		1,062,705
	20,000	Public Storage, Inc.		867,800

				4,706,409

Property Insurance – 6.6%
	39,400	American International Group, Inc.		2,611,432
	54,425	PartnerRe Ltd.		3,159,371
	77,676	RenaissanceRe Holdings Ltd.		3,810,008
	25,200	The Allstate Corp.		1,084,104
	56,500	Willis Group Holdings Ltd.		1,924,955
	33,326	XL Capital Ltd.		2,584,431

				15,174,301

Railroads – 0.8%
	29,934	Canadian National Railway Co.		1,894,224

Retail – 0.5%
	24,775	Simon Property Group, Inc.		1,148,073

Retail Apparel – 2.3%
	56,200	Limited Brands		1,013,286
	68,200	The Home Depot, Inc.		2,420,418
	66,151	The May Department Stores Co.		1,923,010

				5,356,714

Telephone – 3.1%
	78,800	SBC Communications, Inc.		2,054,316
	141,500	Verizon Communications, Inc.		4,963,820

				7,018,136

Tobacco – 2.0%
	66,600	Altria Group, Inc.		3,624,372
	30,200	UST, Inc.		1,077,838

				4,702,210

TOTAL COMMON STOCKS
(Cost $185,577,661)			$	225,876,542



Principal		Interest			Maturity
Amount		Rate			Date
							Value
Repurchase Agreement – 1.7%

Joint Repurchase Agreement Account II^
$	3,900,000		0.99	%		1/02/2004	$	3,900,000
Maturity Value $3,900,215

TOTAL REPURCHASE AGREEMENT
(Cost $3,900,000)							$	3,900,000

TOTAL INVESTMENTS
(Cost $189,477,661)							$	229,776,542


*		Non-income producing security.

^		Joint repurchase agreement was entered into on December 31, 2003.

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

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 during the one-year reporting period that ended December 31, 2003.

Market Review

For the one-year reporting period ended December 31, 2003, the Standard & Poor’s 500 Index (the “Index”) gained 28.69%, its largest one-year gain since 1997. All 13 sectors in the Index posted positive returns, with Technology (+47.4%) and Industrials (+40.9%) posting the largest absolute gains. The Technology sector also contributed (weight times performance) most positively to Index gains, as did the Financials sector (+32.0%).

Investment Objective

The Fund seeks long-term growth of capital and dividend income.

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2003*


		% of
Company	Business	Net Assets

Intel Corp.	Semiconductors		2.9	%
Bank of America Corp.	Banks		2.1
Pfizer, Inc.	Drugs		2.1
General Electric Co.	Industrial Parts		2.0
The Procter & Gamble Co.	Home Products		2.0
Microsoft Corp.	Computer Software		2.0
Citigroup, Inc.	Banks		1.8
Viacom, Inc. Class B	Media		1.7
Johnson & Johnson	Drugs		1.7
Time Warner, Inc.	Media		1.6

Performance Review

Over the one-year period that ended December 31, 2003, the Fund generated a cumulative total return of 29.47%. Over the same time period, the Fund’s benchmark, the S&P 500 Index (with dividends reinvested), generated a cumulative total return of 28.69%.

As these absolute returns indicate, the equity markets capped off a successful 2003 with the best results they’ve seen since before the technology bubble burst. The Fund also outperformed its benchmark for the one-year reporting period, as the CORE process benefited from the more rational environment with investors returning to quality.

Returns to the CORE themes were positive overall for the one-year reporting period. Valuation and Profitability were the most significant contributors, which was not surprising

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

Shareholder Letter (continued)

given investors’ renewed regard for strong underlying fundamentals in the second half of the year. Earnings Quality and Management Impact experienced more modest results over the period. Following a strong first quarter, Momentum lost ground the rest of the year, particularly in the second quarter, as companies with strong momentum characteristics hurt relative returns. Analyst Sentiment, formerly referred to as Fundamental Research, also detracted somewhat from returns versus the benchmark.

Stock selection was positive overall, particularly in the Healthcare sector. Meanwhile, holdings in the Technology sector lagged their peers in the benchmark, but did little to offset gains felt in other sectors.

In managing the CORE products, we do not make size or sector bets. We hope to add value versus the Fund’s Index through individual stock selection. Our quantitative process seeks out stocks with good momentum that also appear to be good values. We prefer stocks about which fundamental research analysts are becoming more positive and companies with strong profit margins, sustainable earnings, and that use their capital to enhance shareholder value. These factors are not highly correlated to each other, which diversifies the Fund’s sources of returns.

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

Goldman Sachs Quantitative Equity Portfolio Management Team

January 15, 2004

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

Performance Summary

December 31, 2003

The following graph shows the value as of December 31, 2003, 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 (with dividends reinvested) (“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. Performance reflects Fund level expenses but does not reflect fees and expenses associated with any variable annuity contract or variable life insurance policy that uses the Fund as an investment option for any contract or policy. Had performance reflected all of those fees and expenses, performance would have been reduced. In addition to the investment adviser’s decisions regarding issuer/industry/country investment selection and allocation, other factors may affect Fund performance. These factors include, but are not limited to, Fund operating fees and expenses, portfolio turnover, and subscription and redemption cash flows affecting a Fund.

CORE U.S. Equity Fund’s Lifetime Performance

Growth of a $10,000 Investment, Distributions Reinvested from February 13, 1998 to December 31, 2003.


	Since Inception	Five Years	One Year




Average Annual Total Return Through December 31, 2003




CORE U.S. Equity Fund (commenced February 13, 1998)	2.37%	0.01%	29.47%

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

Statement of Investments

December 31, 2003



Shares		Description	Value
Common Stocks – 99.5%

Airlines – 0.0%
	9,300	Southwest Airlines Co.	$	150,102

Banks – 9.5%
	100,383	Bank of America Corp.		8,073,805
	7,400	Bank of Hawaii Corp.		312,280
	6,000	Charter One Financial, Inc.		207,300
	139,332	Citigroup, Inc.		6,763,175
	20,700	FleetBoston Financial Corp.		903,555
	63,500	J.P. Morgan Chase & Co.		2,332,355
	15,200	National City Corp.		515,888
	4,300	Popular, Inc.		193,242
	6,900	SouthTrust Corp.		225,837
	47,200	SunTrust Banks, Inc.		3,374,800
	197,100	U.S. Bancorp		5,869,638
	11,600	UnionBanCal Corp.		667,464
	121,300	Wachovia Corp.		5,651,367
	17,700	Wells Fargo & Co.		1,042,353
	3,100	Zions Bancorp.		190,123

				36,323,182

Biotechnology – 2.4%
	70,628	Amgen, Inc.*		4,364,810
	18,000	Genentech, Inc.*		1,684,260
	57,000	Gilead Sciences, Inc.*		3,313,980

				9,363,050

Brokers – 1.3%
	21,800	A.G. Edwards, Inc.		789,814
	25,100	Lehman Brothers Holdings, Inc.		1,938,222
	39,600	Merrill Lynch & Co., Inc.		2,322,540

				5,050,576

Chemicals – 3.1%
	72,200	3M Co.		6,139,166
	143,700	Monsanto Co.		4,135,686
	30,700	The Dow Chemical Co.		1,276,199
	5,500	The Sherwin-Williams Co.		191,070

				11,742,121

Computer Hardware – 4.9%
	7,000	Advanced Fibre Communications, Inc.*		141,050
	73,800	Agilent Technologies, Inc.*		2,157,912
	199,500	Avaya, Inc.*		2,581,530
	123,100	Cisco Systems, Inc.*		2,990,099
	110,100	Dell, Inc.*		3,738,996
	139,400	EMC Corp.*		1,801,048
	125,510	Hewlett-Packard Co.		2,882,965
	16,400	NCR Corp.*		636,320
	27,900	SanDisk Corp.*		1,705,806

				18,635,726

Computer Software – 5.5%
	93,400	Adobe Systems, Inc.		3,670,620
	45,500	BMC Software, Inc.*		848,575
	20,300	Citrix Systems, Inc.*		430,563
	106,100	Computer Associates International, Inc.		2,900,774
	24,500	International Business Machines Corp.		2,270,660
	3,600	Intuit, Inc.*		190,476
	274,100	Microsoft Corp.		7,548,714
	93,200	Oracle Corp.*		1,230,240
	28,600	Symantec Corp.*		990,990
	27,800	VERITAS Software Corp.*		1,033,048

				21,114,660

Defense/ Aerospace – 0.2%
	20,800	The Boeing Co.		876,512

Drugs – 7.1%
	24,500	Allergan, Inc.		1,881,845
	69,000	American Pharmaceutical Partners, Inc.*		2,318,400
	27,800	Eli Lilly & Co.		1,955,174
	12,100	Endo Pharmaceuticals Holdings, Inc.*		233,046
	123,700	Johnson & Johnson		6,390,342
	100,000	McKesson Corp.		3,216,000
	66,800	Merck & Co., Inc.		3,086,160
	14,600	Mylan Laboratories, Inc.		368,796
	223,605	Pfizer, Inc.		7,899,965

				27,349,728

Electrical Utilities – 2.7%
	11,300	Constellation Energy Group, Inc.		442,508
	108,400	Edison International*		2,377,212
	66,500	Entergy Corp.		3,799,145
	44,262	Exelon Corp.		2,937,226
	30,200	Pepco Holdings, Inc.		590,108

				10,146,199

Energy Resources – 4.2%
	39,188	ConocoPhillips		2,569,557
	72,900	Devon Energy Corp.		4,174,254
	151,366	Exxon Mobil Corp.		6,206,006
	72,500	Occidental Petroleum Corp.		3,062,400

				16,012,217

Environmental Services – 1.2%
	148,100	Waste Management, Inc.		4,383,760

Financial Services – 3.2%
	32,000	American Express Co.		1,543,360
	92,500	CIT Group, Inc.		3,325,375
	50,500	Freddie Mac		2,945,160
	140,500	MBNA Corp.		3,491,425
	26,500	SLM Corp.		998,520

				12,303,840

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)

Food & Beverage – 4.3%
	225,839	Archer-Daniels-Midland Co.	$	3,437,270
	110,800	Kraft Foods, Inc.		3,569,976
	22,800	SUPERVALU, INC.		651,852
	122,700	Sysco Corp.		4,568,121
	25,000	The Coca-Cola Co.		1,268,750
	224,500	Tyson Foods, Inc.		2,972,380

				16,468,349

Forest – 0.3%
	6,600	Boise Cascade Corp.		216,876
	15,600	Weyerhaeuser Co.		998,400

				1,215,276

Gold – 0.2%
	15,700	Freeport-McMoRan Copper & Gold, Inc. Class B		661,441

Health Insurance – 0.1%
	16,400	Humana, Inc.*		374,740

Heavy Electrical – 0.1%
	13,400	Rockwell Automation, Inc.		477,040

Home Products – 3.4%
	59,400	Avon Products, Inc.		4,008,906
	5,600	The Clorox Co.		271,936
	35,600	The Gillette Co.		1,307,588
	75,600	The Procter & Gamble Co.		7,550,928

				13,139,358

Industrial Parts – 2.3%
	252,300	General Electric Co.		7,816,254
	28,100	York International Corp.		1,034,080

				8,850,334

Industrial Services – 0.2%
	15,700	ITT Educational Services, Inc.*		737,429

Information Services – 2.5%
	144,500	Accenture Ltd.*		3,803,240
	20,000	Computer Sciences Corp.*		884,600
	31,800	Convergys Corp.*		555,228
	8,000	IMS Health, Inc.		198,880
	11,800	Keane, Inc.*		172,752
	67,200	Moody’s Corp.		4,068,960

				9,683,660

Leisure & Entertainment – 0.3%
	10,100	GTECH Holdings Corp.		499,849
	9,400	Hasbro, Inc.		200,032
	27,200	Park Place Entertainment Corp.*		294,576

				994,457

Life Insurance – 3.1%
	114,700	MetLife, Inc.		3,861,949
	5,700	Nationwide Financial Services, Inc.		188,442
	98,300	Principal Financial Group, Inc.		3,250,781
	109,000	Prudential Financial, Inc.		4,552,930

				11,854,102

Media – 5.3%
	82,164	Comcast Corp.*		2,700,731
	6,900	Cox Radio, Inc.*		174,087
	132,700	Fox Entertainment Group, Inc.*		3,868,205
	9,385	Hughes Electronics Corp.*		155,316
	19,100	PanAmSat Corp.*		411,796
	350,100	Time Warner, Inc.*		6,298,299
	150,985	Viacom, Inc. Class B		6,700,714

				20,309,148

Medical Products – 3.6%
	88,900	Boston Scientific Corp.*		3,267,964
	68,000	Guidant Corp.		4,093,600
	31,700	Medtronic, Inc.		1,540,937
	10,800	St. Jude Medical, Inc.*		662,580
	61,700	Zimmer Holdings, Inc.*		4,343,680

				13,908,761

Medical Providers – 0.7%
	13,542	Medco Health Solutions, Inc.*		460,293
	39,800	UnitedHealth Group, Inc.		2,315,564

				2,775,857

Motor Vehicle – 2.7%
	130,600	AutoNation, Inc.*		2,399,122
	17,400	Delphi Corp.		177,654
	167,700	Ford Motor Co.		2,683,200
	94,100	General Motors Corp.		5,024,940

				10,284,916

Office Industrial – 0.2%
	29,100	Equity Office Properties Trust		833,715

Oil Refining – 1.7%
	72,900	Sunoco, Inc.		3,728,835
	58,800	Valero Energy Corp.		2,724,792

				6,453,627

Oil Services – 0.9%
	147,700	Transocean, Inc.*		3,546,277

Packaging – 0.2%
	12,400	Ball Corp.		738,668

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

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

Statement of Investments (continued)

December 31, 2003



Shares		Description	Value
Common Stocks – (continued)

Property Insurance – 2.7%
	38,978	American International Group, Inc.	$	2,583,462
	32,375	Fidelity National Financial, Inc.		1,255,503
	77,400	Loews Corp.		3,827,430
	12,900	MBIA, Inc.		764,067
	16,800	The Chubb Corp.		1,144,080
	37,023	Travelers Property Casualty Corp. Class B		628,280

				10,202,822

Publishing – 0.3%
	22,100	Deluxe Corp.		913,393
	4,300	Tribune Co.		221,880

				1,135,273

Railroads – 0.2%
	21,800	Burlington Northern Santa Fe Corp.		705,230
	2,900	Union Pacific Corp.		201,492

				906,722

Retail – 0.1%
	8,300	Kimco Realty Corp.		371,425

Retail Apparel – 5.9%
	16,100	Best Buy Co., Inc.		841,064
	92,100	Coach, Inc.*		3,476,775
	73,800	CVS Corp.		2,665,656
	87,900	Federated Department Stores, Inc.		4,142,727
	48,800	J. C. Penney Co., Inc.		1,282,464
	29,300	Sears, Roebuck & Co.		1,332,857
	150,700	Staples, Inc.*		4,114,110
	89,800	Wal-Mart Stores, Inc.		4,763,890

				22,619,543

Semiconductors – 5.4%
	94,600	Avnet, Inc.*		2,049,036
	343,000	Intel Corp.		11,044,619
	123,100	LSI Logic Corp.*		1,091,897
	15,800	National Semiconductor Corp.*		622,678
	193,300	Texas Instruments, Inc.		5,679,154

				20,487,384

Telecommunications Equipment – 1.6%
	274,000	Motorola, Inc.		3,855,180
	39,000	QUALCOMM, Inc.		2,103,270

				5,958,450

Telephone – 3.4%
	106,800	BellSouth Corp.		3,022,440
	31,000	CenturyTel, Inc.		1,011,220
	88,653	SBC Communications, Inc.		2,311,183
	262,900	Sprint Corp.		4,316,818
	68,960	Verizon Communications, Inc.		2,419,117

				13,080,778

Thrifts – 0.1%
	5,800	Washington Mutual, Inc.		232,696

Tobacco – 0.7%
	7,200	Altria Group, Inc.		391,824
	42,200	R.J. Reynolds Tobacco Holdings, Inc.		2,453,930

				2,845,754

Truck Freight – 0.7%
	35,900	United Parcel Service, Inc.		2,676,345

Wireless – 1.0%
	402,624	AT&T Wireless Services, Inc.*		3,216,966
	12,200	United States Cellular Corp.*		433,100

				3,650,066

TOTAL COMMON STOCKS
(Cost $333,103,241)			$	380,926,086

Principal

Interest

Maturity

Amount

Rate

Date

Value

Repurchase Agreement – 0.9%

Joint Repurchase Agreement Account II^

3,600,000

0.99%

01/02/2004

3,600,000

Maturity Value $3,600,198

TOTAL REPURCHASE AGREEMENT

(Cost $3,600,000)

3,600,000

TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL

(Cost $336,703,241)

384,526,086



Shares		Description	Value
Securities Lending Collateral – 0.5%

	1,778,000	Boston Global Investment Trust – Enhanced Portfolio	$	1,778,000

TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,778,000)			$	1,778,000

TOTAL INVESTMENTS
(Cost $338,481,241)			$	386,304,086


*		Non-income producing security.

^		Joint repurchase agreement was entered into on December 31, 2003.

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

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 Small Cap Equity Fund during the one-year reporting period that ended December 31, 2003.

Market Review

For the one-year reporting period ended December 31, 2003, the Russell 2000 Index gained 47.25%, setting a new record for a single year’s return. All 13 sectors in the Index posted positive absolute returns for the period, with Telecommunications (+71.2%) and Technology (+66.5%) emerging as the leaders. Technology was also by far the biggest contributor (weight times performance) to Index gains, followed at some distance by the Financials (+36.7%) and Healthcare (+60.6%) sectors.

Investment Objective

The Fund seeks long-term growth of capital.

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2003*


		% of
Company	Business	Net Assets

Hot Topic, Inc.	Retail Apparel		1.1	%
Sohu.com, Inc.	Internet		1.1
Engineered Support Systems, Inc.	Industrial Parts		1.0
AirTran Holdings, Inc.	Airlines		1.0
eResearch Technology, Inc.	Computer Software		0.9
Silicon Valley Bancshares	Banks		0.8
LSI Logic Corp.	Semiconductors		0.8
LandAmerica Financial Group, Inc.	Property Insurance		0.7
Papa John’s International, Inc.	Restaurants		0.7
Patina Oil & Gas Corp.	Energy Resources		0.7

Performance Review

Over the one-year reporting period that ended December 31, 2003, the Fund generated a cumulative total return of 46.00%. Over the same period, the Fund’s benchmark, the Russell 2000 Index (with dividends reinvested), generated a cumulative total return of 47.25%.

As these absolute returns indicate, the equity markets capped off a successful 2003 with the best results they’ve seen since before the technology bubble burst. Despite strong absolute performance, the Fund lagged its benchmark for the period. At the beginning of the market’s

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

Shareholder Letter continued

recovery, the underperformance was largely due to investors favoring more volatile, low quality stocks over their fundamentally strong counterparts – an effect that was particularly pronounced in the small-cap universe. The Fund was also hurt as we sought to avoid the smallest, least liquid companies. This detracted from relative returns in a period when the smallest stocks performed extremely well versus their relatively larger-sized counterparts. Although the Fund performed well in the fourth quarter as investors shifted back towards fundamentals, it was not enough to offset underperformance earlier in the reporting period.

Returns to the CORE themes were positive overall for the one-year reporting period. Profitability and Valuation were the most significant contributors, not surprising given investors’ renewed regard for strong underlying fundamentals in the second half of the year. Earnings Quality, Management Impact and Momentum experienced more modest results over the period. Meanwhile, Analyst Sentiment, formerly referred to as Fundamental Research, detracted somewhat from relative returns.

Stock selection was negative overall, most notably in the heavily weighted Technology sector. On the upside, the Fund’s holdings in the top-weighted Financials sector helped boost returns relative to the benchmark, but did little to offset losses felt in other sectors.

In managing the CORE products, we do not make size or sector bets. We hope to add value versus the Fund’s Index through individual stock selection. Our quantitative process seeks out stocks with good momentum that also appear to be good values. We prefer stocks about which fundamental research analysts are becoming more positive, and companies with strong profit margins, sustainable earnings, and that use their capital to enhance shareholder value. These factors are not highly correlated to each other, which diversifies the Fund’s sources of returns.

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

Goldman Sachs Quantitative Equity Management Team

January 15, 2004

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

Performance Summary

December 31, 2003

The following graph shows the value as of December 31, 2003, of a $10,000 investment made February 13, 1998 (commencement of operations). For comparative purposes, the performance of the Fund’s benchmark, the Russell 2000 Index (with dividends reinvested), 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. Performance reflects Fund level expenses but does not reflect fees and expenses associated with any variable annuity contract or variable life insurance policy that uses the Fund as an investment option for any contract or policy. Had performance reflected all of those fees and expenses, performance would have been reduced. In addition to the investment adviser’s decisions regarding issuer/industry/country investment selection and allocation, other factors may affect Fund performance. These factors include, but are not limited to, Fund operating fees and expenses, portfolio turnover, and subscription and redemption cash flows affecting a Fund.

CORE Small Cap Equity Fund’s Lifetime Performance

Growth of a $10,000 investment, Distributions Reinvested from February 13, 1998 to December 31, 2003.


	Since Inception	Five Years	One Year




Average Annual Total Return Through December 31, 2003




CORE Small Cap Equity Fund (commenced February 13, 1998)	5.98%	9.18%	46.00%

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

Statement of Investments

December 31, 2003



Shares		Description	Value
Common Stocks – 99.5%

Airlines – 1.8%
	152,600	AirTran Holdings, Inc.*	$	1,815,940
	17,200	Alaska Air Group, Inc.*		469,388
	9,300	America West Holdings Corp. Class B*		115,320
	14,400	ExpressJet Holdings, Inc.*		216,000
	35,100	SkyWest, Inc.		636,012

				3,252,660

Alcohol – 0.2%
	10,800	The Robert Mondavi Corp.*		419,472

Apartments – 0.4%
	8,700	Amli Residential Properties Trust		233,160
	3,300	Mid-America Apartment Communities, Inc.		110,814
	12,200	Post Properties, Inc.		340,624

				684,598

Banks – 6.9%
	3,000	AMCORE Financial, Inc.		81,060
	6,200	Associated Banc-Corp.		264,430
	1,000	BancFirst Corp.		58,702
	24,000	Bank of Hawaii Corp.		1,012,800
	29,000	BankAtlantic Bancorp, Inc.		551,000
	5,200	Berkshire Hills Bancorp, Inc.		188,240
	15,300	Boston Private Financial Holdings, Inc.		380,052
	13,100	Brookline Bancorp, Inc.		200,954
	2,750	Capital City Bank Group, Inc.		126,472
	5,100	Center Bancorp, Inc.		100,266
	3,900	Chittenden Corp.		131,196
	12,200	City National Corp.		757,864
	10,880	Commerce Bancshares, Inc.		533,338
	2,900	Community Bank System, Inc.		142,100
	12,200	Corus Bankshares, Inc.		385,032
	5,500	East West Bancorp, Inc.		295,240
	3,400	First Citizens BancShares, Inc.		413,202
	5,500	First Commonwealth Financial Corp.		78,430
	2,500	First Financial Bankshares, Inc.		104,250
	22,300	First Niagara Financial Group, Inc.		332,493
	6,600	Hancock Holding Co.		360,162
	2,200	IBERIABANK Corp.		129,800
	4,310	Independent Bank Corp.		122,232
	2,300	LNB Bancorp, Inc.		46,690
	3,190	Oriental Financial Group, Inc.		81,983
	7,866	Pacific Capital Bancorp.		289,626
	10,200	PFF Bancorp, Inc.		370,056
	4,400	Prosperity Bancshares, Inc.		99,088
	13,000	Provident Bankshares Corp.		382,720
	10,200	Provident Financial Services, Inc.		192,780
	11,600	R&G Financial Corp. Class B		461,680
	40,700	Silicon Valley Bancshares*		1,468,049
	6,275	Sterling Bancorp.		178,837
	12,600	Susquehanna Bancshares, Inc.		315,126
	6,230	Texas Regional Bancshares, Inc.		230,510
	9,400	The South Financial Group, Inc.		261,884
	7,100	TrustCo Bank Corp. NY		93,365
	2,700	Trustmark Corp.		79,029
	6,200	U.S.B. Holding Co., Inc.		120,218
	11,370	UMB Financial Corp.		540,530
	5,800	Unizan Financial Corp.		117,450
	4,500	Waypoint Financial Corp.		97,605
	1,900	Whitney Holding Corp.		77,881
	4,500	Wintrust Financial Corp.		202,950

				12,457,372

Biotechnology – 5.9%
	51,200	Affymetrix, Inc.*		1,260,032
	12,300	Albany Molecular Research, Inc.*		184,746
	18,400	Antigenics, Inc.*		208,288
	46,000	Applera Corp. — Celera Genomics Group*		639,860
	27,800	Connetics Corp.*		504,848
	45,200	CV Therapeutics, Inc.*		662,632
	25,100	deCODE genetics, Inc.*		205,569
	6,200	Diversa Corp.*		57,350
	25,000	Enzon Pharmaceuticals, Inc.*		300,000
	23,400	Gen-Probe, Inc.*		853,398
	30,500	Gene Logic, Inc.*		158,295
	48,200	Geron Corp.*		480,554
	22,400	Guilford Pharmaceuticals, Inc.*		151,872
	8,300	Invitrogen Corp.*		581,000
	29,700	Kos Pharmaceuticals, Inc.*		1,278,288
	16,700	Maxygen, Inc.*		177,521
	50,000	Medarex, Inc.*		311,500
	26,000	Nabi Biopharmaceuticals*		330,460
	7,400	NeoPharm, Inc.*		135,568
	19,000	Neurocrine Biosciences, Inc.*		1,036,260
	6,600	Techne Corp.*		249,348
	53,900	Vicuron Pharmaceuticals, Inc.*		1,005,235

				10,772,624

Brokers – 0.3%
	15,000	A.G. Edwards, Inc.		543,450

Chemicals – 0.7%
	3,800	A. Schulman, Inc.		81,016
	11,100	Arch Chemicals, Inc.		284,826
	1,500	Brady Corp.		61,125
	6,600	Carlisle Companies, Inc.		401,676
	5,900	Ethyl Corp.*		129,033
	36,400	PolyOne Corp.*		232,596
	1,500	Rogers Corp.*		66,180

				1,256,452

Computer Hardware – 2.5%
	52,700	Adaptec, Inc.*		465,341
	4,800	Advanced Digital Information Corp.*		67,200
	51,600	Advanced Fibre Communications, Inc.*		1,039,740
	11,000	Checkpoint Systems, Inc.*		208,010

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

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



Shares		Description	Value
Common Stocks – (continued)

Computer Hardware – (continued)
	12,800	CompuCom Systems, Inc.*	$	67,072
	33,800	Computer Network Technology Corp.*		322,452
	18,700	Echelon Corp.*		208,318
	29,100	Electronics for Imaging, Inc.*		757,182
	25,400	Gateway, Inc.*		116,840
	29,700	Hypercom Corp.*		141,372
	7,000	Imagistics International, Inc.*		262,500
	52,600	InFocus Corp.*		509,168
	11,000	Komag, Inc.*		160,930
	2,600	RadiSys Corp.*		43,836
	12,600	RSA Security, Inc.*		178,920

				4,548,881

Computer Software – 5.4%
	5,600	ANSYS, Inc.*		222,320
	22,225	Ascential Software Corp.*		576,294
	35,600	Aspect Communications Corp.*		561,056
	19,000	Atari, Inc.*		79,800
	51,900	Autodesk, Inc.		1,275,702
	14,400	Cerner Corp.*		545,040
	11,200	Dendrite International, Inc.*		175,504
	25,600	Epicor Software Corp.*		326,656
	62,550	eResearch Technology, Inc.*		1,590,021
	20,900	FileNET Corp.*		565,972
	28,300	Intergraph Corp.*		676,936
	18,600	Interwoven, Inc.*		235,104
	11,300	JDA Software Group, Inc.*		186,563
	16,400	Macrovision Corp.*		370,476
	6,000	Mentor Graphics Corp.*		87,240
	10,700	MSC.Software Corp.*		101,115
	4,500	Pharmacopeia, Inc.*		63,945
	12,700	QAD, Inc.*		155,702
	3,600	Quality Systems, Inc.*		160,524
	25,000	SeaChange International, Inc.*		385,000
	6,100	SPSS, Inc.*		109,068
	50,300	Sybase, Inc.*		1,035,174
	21,600	Tradestation Group, Inc.*		191,376
	12,800	Ulticom, Inc.*		123,520

				9,800,108

Construction – 1.7%
	13,900	Champion Enterprises, Inc.*		97,300
	16,400	Granite Construction, Inc.		385,236
	12,950	Griffon Corp.*		262,367
	19,100	Lennox International, Inc.		318,970
	2,000	M/I Schottenstein Homes, Inc.		78,100
	32,700	Matrix Service Co.*		593,505
	53,300	USG Corp.*		883,181
	15,000	Washington Group International, Inc.*		509,550

				3,128,209

Consumer Durables – 0.6%
	7,800	Applica, Inc.*		59,280
	2,000	CSS Industries, Inc.		62,020
	10,600	Interface, Inc.*		58,618
	18,600	Kimball International, Inc. Class B		289,230
	12,700	The Toro Co.		589,280

				1,058,428

Defense/ Aerospace – 0.7%
	4,200	Aviall, Inc.*		65,142
	14,200	Curtiss-Wright Corp.		639,142
	1,400	Moog, Inc.*		69,160
	2,100	Sequa Corp.*		102,900
	12,300	Teledyne Technologies, Inc.*		231,855
	2,300	Triumph Group, Inc.*		83,720

				1,191,919

Drugs – 2.2%
	5,200	Alpharma, Inc.		104,520
	18,400	American Pharmaceutical Partners, Inc.*		618,240
	14,000	CollaGenex Pharmaceuticals, Inc.*		156,940
	10,000	Diagnostic Products Corp.		459,100
	13,900	Endo Pharmaceuticals Holdings, Inc.*		267,714
	16,700	IDEXX Laboratories, Inc.*		772,876
	5,300	Noven Pharmaceuticals, Inc.*		80,613
	25,100	Priority Healthcare Corp. Class B*		605,161
	28,500	USANA Health Sciences, Inc.*		872,100

				3,937,264

Electrical Equipment – 1.2%
	8,200	Anaren Microwave, Inc.*		115,784
	20,600	Coherent, Inc.*		490,280
	8,100	Esterline Technologies Corp.*		216,027
	2,500	II-VI, Inc.*		64,500
	12,800	Inter-Tel, Inc.		319,744
	33,500	Intervoice, Inc.*		397,645
	7,300	Methode Electronics, Inc.		89,279
	19,300	MTS Systems Corp.		371,139
	5,400	REMEC, Inc.*		45,414

				2,109,812

Electrical Utilities – 1.4%
	19,700	Allegheny Energy, Inc.*		251,372
	25,300	Avista Corp.		458,436
	5,200	Central Vermont Public Service Corp.		122,200
	12,000	IDACORP, Inc.		359,040
	36,600	Northeast Utilities		738,222
	15,200	PNM Resources, Inc.		427,120
	12,000	Southern Union Co.*		220,800

				2,577,190

Electronic Manufacturing Services – 0.1%
	14,600	EnPro Industries, Inc.*		203,670

Energy Resources – 2.7%
	18,200	Cimarex Energy Co.*		485,758
	24,200	Comstock Resources, Inc.*		467,060

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)

December 31, 2003



Shares		Description	Value
Common Stocks – (continued)

Energy Resources – (continued)
	3,700	Encore Acquisition Co.*	$	91,205
	74,800	Magnum Hunter Resources, Inc.*		711,348
	26,925	Patina Oil & Gas Corp.		1,319,056
	14,800	Stone Energy Corp.*		628,260
	8,200	The Houston Exploration Co.*		299,464
	32,700	Vintage Petroleum, Inc.		393,381
	12,300	Western Gas Resources, Inc.		581,175

				4,976,707

Financial Services – 1.2%
	7,000	Advanta Corp. Class B		89,040
	39,900	CompuCredit Corp.*		849,072
	3,200	Credit Acceptance Corp.*		48,960
	14,900	NCO Group, Inc.*		339,273
	13,900	New Century Financial Corp.		551,413
	17,300	World Acceptance Corp.*		344,443

				2,222,201

Food & Beverage – 2.0%
	12,200	American Italian Pasta Co.*		511,180
	36,100	Chiquita Brands International, Inc.*		813,333
	10,000	Corn Products International, Inc.		344,500
	8,101	Flowers Foods, Inc.		209,006
	42,500	Interstate Bakeries Corp.		604,775
	4,000	J & J Snack Foods Corp.*		151,040
	8,400	Nash-Finch Co.		187,656
	12,000	PepsiAmericas, Inc.		205,440
	11,000	Pilgrim’s Pride Corp.		179,630
	12,100	Ralcorp Holdings, Inc.*		379,456
	2,600	Sanderson Farms, Inc.		104,780

				3,690,796

Forest – 1.3%
	10,600	Chesapeake Corp.		280,688
	5,900	Greif Bros. Corp.		209,509
	5,700	Longview Fibre Co.		70,395
	8,000	Rock-Tenn Co.		138,080
	4,600	Schweitzer-Mauduit International, Inc.		136,988
	30,000	United Stationers, Inc.*		1,227,600
	7,000	Universal Forest Products, Inc.		225,260

				2,288,520

Gas Utilities – 0.2%
	4,100	New Jersey Resources Corp.		157,891
	3,500	Northwest Natural Gas Co.		107,625
	4,100	Southwest Gas Corp.		92,045

				357,561

Gold – 0.2%
	13,600	Royal Gold, Inc.		284,648

Grocery – 0.4%
	15,800	Pathmark Stores, Inc.*		120,080
	17,100	Ruddick Corp.		306,090
	26,400	The Great Atlantic & Pacific Tea Co., Inc.*		221,760

				647,930

Health Insurance – 0.1%
	6,900	WellChoice, Inc.*		238,050

Heavy Electrical – 0.8%
	11,600	Belden, Inc.		244,644
	52,200	General Cable Corp.*		425,430
	4,250	LSI Industries, Inc.		57,375
	4,400	Rofin-Sinar Technologies, Inc.*		152,064
	21,600	Technitrol, Inc.*		447,984
	1,200	Woodward Governor Co.		68,196

				1,395,693

Heavy Machinery – 0.5%
	3,600	Joy Global, Inc.		94,140
	7,400	NACCO Industries, Inc.		662,152
	6,600	Stewart & Stevenson Services, Inc.		92,730
	2,700	Terex Corp.*		76,896
	2,500	Trinity Industries, Inc.		77,100

				1,003,018

Home Products – 0.6%
	15,200	Central Garden & Pet Co.*		426,056
	31,300	Nu Skin Enterprises, Inc.		534,917
	12,700	Perrigo Co.		199,644

				1,160,617

Hotels – 0.9%
	17,300	Choice Hotels International, Inc.*		609,825
	14,100	FelCor Lodging Trust, Inc.		156,228
	15,900	Innkeepers USA Trust		133,083
	79,000	La Quinta Corp.*		506,390
	3,800	Penn National Gaming, Inc.*		87,704
	11,300	Prime Hospitality Corp.*		115,260
	4,000	The Marcus Corp.		65,600

				1,674,090

Industrial Parts – 3.9%
	4,200	A.O. Smith Corp.		147,210
	2,100	Actuant Corp.*		76,020
	13,000	Acuity Brands, Inc.		335,400
	21,700	Applied Industrial Technologies, Inc.		517,762
	1,200	Briggs & Stratton Corp.		80,880
	3,800	CIRCOR International, Inc.		91,580
	33,500	Engineered Support Systems, Inc.		1,844,510
	13,500	Hughes Supply, Inc.		669,870
	4,800	Kaman Corp.		61,104
	50,600	UNOVA, Inc.*		1,161,270
	4,500	Wabash National Corp.*		131,850
	28,400	Watsco, Inc.		645,532

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

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



Shares		Description	Value
Common Stocks – (continued)

Industrial Parts – (continued)
	10,000	Watts Water Technologies, Inc.	$	222,000
	28,700	York International Corp.		1,056,160

				7,041,148

Industrial Services – 1.5%
	5,900	Administaff, Inc.*		102,542
	5,200	Copart, Inc.*		85,800
	14,700	Corrections Corp. of America*		423,801
	11,300	Dollar Thrifty Automotive Group, Inc.*		293,122
	25,900	Integrated Electrical Services, Inc.*		239,575
	8,600	ITT Educational Services, Inc.*		403,942
	36,100	MPS Group, Inc.*		337,535
	22,300	Quanta Services, Inc.*		162,790
	8,200	SM&A*		95,940
	49,900	Spherion Corp.*		488,521
	5,400	United Rentals, Inc.*		104,004

				2,737,572

Information Services – 3.3%
	9,200	American Management Systems, Inc.*		138,644
	22,200	Arbitron, Inc.*		926,184
	12,200	CACI International, Inc.*		593,164
	22,700	Century Business Services, Inc.*		101,469
	2,600	Charles River Associates, Inc.*		83,174
	39,500	CSG Systems International, Inc.*		493,355
	9,500	Daktronics, Inc.*		239,020
	26,700	eFunds Corp.*		463,245
	48,100	Gartner, Inc.*		544,011
	2,900	Gevity HR, Inc.		64,496
	11,600	Group 1 Software, Inc.*		204,392
	21,800	Keane, Inc.*		319,152
	16,900	Lightbridge, Inc.*		153,790
	5,500	MAXIMUS, Inc.*		215,215
	9,200	Navigant International, Inc.*		127,420
	12,900	Pre-Paid Legal Services, Inc.*		336,948
	4,100	ProQuest Co.*		120,745
	2,500	SOURCECORP, Inc.*		64,075
	1,800	StarTek, Inc.		73,422
	6,700	Symyx Technologies, Inc.*		137,685
	32,500	TeleTech Holdings, Inc.*		367,250
	5,300	The Advisory Board Co.*		185,023

				5,951,879

Internet – 3.0%
	9,100	Bankrate, Inc.*		112,658
	24,300	EarthLink, Inc.*		243,000
	9,800	eCollege.com*		180,908
	3,500	eSPEED, Inc.*		81,935
	26,000	Inet Technologies, Inc.*		312,000
	2,600	j2 Global Communications, Inc.*		64,402
	17,900	Netegrity, Inc.*		184,549
	7,700	NetFlix, Inc.*		421,113
	67,900	Priceline.com, Inc.*		1,215,410
	33,400	S1 Corp.*		268,870
	35,300	Safeguard Scientifics, Inc.*		142,612
	63,700	Sohu.com, Inc.*		1,911,637
	23,900	United Online, Inc.*		401,281

				5,540,375

Leisure & Entertainment – 2.7%
	5,200	Arctic Cat, Inc.		128,440
	17,800	Aztar Corp.*		400,500
	34,700	Callaway Golf Co.		584,695
	19,400	Concord Camera Corp.*		179,450
	5,090	Dover Downs Gaming & Entertainment, Inc.		48,151
	19,900	Handleman Co.		408,547
	32,500	K2, Inc.*		494,325
	92,000	Park Place Entertainment Corp.*		996,360
	9,600	SCP Pool Corp.*		313,728
	22,800	Shuffle Master, Inc.*		789,336
	28,700	Six Flags, Inc.*		215,824
	8,500	Vail Resorts, Inc.*		144,500
	11,600	World Wrestling Entertainment, Inc.		151,960

				4,855,816

Life Insurance – 1.2%
	22,100	AmerUs Group Co.		772,837
	11,250	Delphi Financial Group, Inc.		405,000
	1,300	National Western Life Insurance Co.*		201,305
	17,400	Protective Life Corp.		588,816
	19,700	UICI*		261,616

				2,229,574

Media – 1.5%
	6,200	ADVO, Inc.		196,912
	22,700	Cox Radio, Inc.*		572,721
	23,400	Emmis Communications Corp.*		632,970
	4,900	Gray Television, Inc.		74,088
	24,300	Hearst-Argyle Television, Inc.		669,708
	12,500	Insight Communications Co., Inc.*		128,875
	5,600	Pegasus Communications Corp.*		157,248
	8,100	The Liberty Corp.		366,039

				2,798,561

Medical Products – 3.8%
	9,200	Advanced Medical Optics, Inc.*		180,780
	15,400	ALARIS Medical Systems, Inc.*		234,234
	24,800	BioLase Technology, Inc.*		411,680
	9,200	Candela Corp.*		167,256
	10,300	D & K Healthcare Resources, Inc.		139,668
	22,900	Dade Behring Holdings, Inc.*		818,446
	4,500	Exactech, Inc.*		66,375
	9,500	Haemonetics Corp.*		226,955
	7,400	Invacare Corp.		298,738
	8,800	Laserscope*		137,192
	19,867	Merit Medical Systems, Inc.*		442,232
	2,900	Ocular Sciences, Inc.*		83,259
	12,700	Owens & Minor, Inc.		278,257
	25,900	PolyMedica Corp.		681,429

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)

December 31, 2003



Shares		Description	Value
Common Stocks – (continued)

Medical Products – (continued)
	6,800	PSS World Medical, Inc.*	$	82,076
	16,300	Respironics, Inc.*		734,967
	6,400	STAAR Surgical Co.*		72,064
	9,900	Sybron Dental Specialties, Inc.*		278,190
	34,700	Thoratec Corp.*		451,447
	9,700	Varian Medical Systems, Inc.*		404,781
	9,800	Ventana Medical Systems, Inc.*		386,120
	8,200	Wright Medical Group, Inc.*		249,608

				6,825,754

Medical Providers – 1.4%
	2,900	American Medical Security Group, Inc.*		65,018
	10,100	Kindred Healthcare, Inc.*		524,998
	7,500	PAREXEL International Corp.*		121,950
	48,200	Select Medical Corp.		784,696
	13,300	Stewart Enterprises, Inc.*		75,544
	86,600	US Oncology, Inc.*		931,816

				2,504,022

Mining – 1.7%
	10,300	AMCOL International Corp.		209,090
	6,600	Brush Engineered Materials, Inc.*		101,046
	17,400	Carpenter Technology Corp.		514,518
	14,000	Commercial Metals Co.		425,600
	11,800	Reliance Steel & Aluminum Corp.		391,878
	24,700	RTI International Metals, Inc.*		416,689
	12,000	Ryerson Tull, Inc.		137,400
	5,100	Schnitzer Steel Industries, Inc.		308,550
	4,700	Silgan Holdings, Inc.*		200,173
	39,500	USEC, Inc.		331,800

				3,036,744

Motor Vehicle – 1.6%
	26,800	Cooper Tire & Rubber Co.		572,984
	10,004	Dura Automotive Systems, Inc.*		127,751
	7,800	Lithia Motors, Inc.		196,638
	148,800	The Goodyear Tire & Rubber Co.*		1,169,568
	5,200	United Auto Group, Inc.		162,760
	65,200	Visteon Corp.		678,732

				2,908,433

Office Industrial – 1.8%
	3,000	Bedford Property Investors, Inc.		85,890
	17,000	Brandywine Realty Trust		455,090
	4,400	CenterPoint Properties Trust		329,560
	3,900	First Industrial Realty Trust, Inc.		131,625
	13,200	Glenborough Realty Trust, Inc.		263,340
	3,300	Keystone Property Trust		72,897
	16,400	Mack-Cali Realty Corp.		682,568
	7,900	PS Business Parks, Inc.		325,954
	18,500	Reckson Associates Realty Corp.		449,550
	12,600	SL Green Realty Corp.		517,230

				3,313,704

Oil Refining – 1.4%
	9,300	Frontier Oil Corp.		160,146
	20,900	Sunoco, Inc.		1,069,035
	84,400	Tesoro Petroleum Corp.*		1,229,708

				2,458,889

Oil Services – 0.8%
	19,500	Global Industries Ltd.*		100,425
	2,600	Hydril Co.*		62,218
	3,000	Lufkin Industries, Inc.		86,370
	6,000	Offshore Logistics, Inc.*		147,120
	8,400	TETRA Technologies, Inc.*		203,616
	16,700	Universal Compression Holdings, Inc.*		436,872
	45,200	Veritas DGC, Inc.*		473,696

				1,510,317

Other REIT – 2.5%
	7,600	American Mortgage Acceptance Co.		123,880
	6,300	Anthracite Capital, Inc.		69,741
	44,400	Anworth Mortgage Asset Corp.		618,492
	26,100	Capstead Mortgage Corp.		437,958
	15,400	Commercial Net Lease Realty		274,120
	5,000	Correctional Properties Trust		144,000
	17,000	Entertainment Properties Trust		590,070
	10,300	Healthcare Realty Trust, Inc.		368,225
	97,700	HRPT Properties Trust		985,793
	15,600	National Health Investors, Inc.		388,128
	10,400	Redwood Trust, Inc.		528,840
	3,100	Thornburg Mortgage, Inc.		84,320

				4,613,567

Property Insurance – 1.8%
	6,200	Argonaut Group, Inc.*		96,348
	11,600	Infinity Property & Casualty Corp.		383,380
	25,900	LandAmerica Financial Group, Inc.		1,353,534
	16,500	Ohio Casualty Corp.*		286,440
	5,400	Selective Insurance Group, Inc.		174,744
	15,900	Stewart Information Services Corp.		644,745
	7,000	The Midland Co.		165,340
	5,600	Zenith National Insurance Corp.		182,280

				3,286,811

Publishing – 1.0%
	12,500	Bowne & Co., Inc.		169,500
	10,800	Consolidated Graphics, Inc.*		341,064
	12,400	Deluxe Corp.		512,492
	3,100	John H. Harland Co.		84,630
	10,300	Pulitzer, Inc.		556,200
	8,300	The Standard Register Co.		139,689

				1,803,575

Railroads – 0.2%
	19,600	Kansas City Southern*		280,672

Real Estate Services – 0.0%
	1,400	LNR Property Corp.		69,314

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

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



Shares		Description	Value
Common Stocks – (continued)

Restaurants – 1.9%
	11,800	CEC Entertainment, Inc.*	$	559,202
	97,500	CKE Restaurants, Inc.*		623,025
	19,700	Dave & Buster’s, Inc.*		249,796
	8,200	Landry’s Restaurants, Inc.		210,904
	7,900	Lone Star Steakhouse & Saloon, Inc.		183,122
	4,500	P.F. Chang’s China Bistro, Inc.*		228,960
	40,300	Papa John’s International, Inc.*		1,345,214
	4,300	Ryan’s Family Steak Houses, Inc.*		65,102

				3,465,325

Retail – 0.3%
	17,800	Heritage Property Investment Trust		506,410

Retail Apparel – 8.0%
	4,200	Aaron Rents, Inc.		84,546
	72,600	Blockbuster, Inc.		1,303,170
	6,100	Brookstone, Inc.*		129,991
	12,000	Brown Shoe Co., Inc.		455,160
	41,700	Charming Shoppes, Inc.*		225,180
	11,300	Cost Plus, Inc.*		463,300
	47,800	Dillard’s, Inc.		786,788
	63,800	Footstar, Inc.*		245,630
	19,500	GameStop Corp.*		300,495
	17,900	Goody’s Family Clothing, Inc.		167,544
	8,700	Haverty Furniture Cos., Inc.		172,782
	5,600	Hibbett Sporting Goods, Inc.*		166,880
	69,200	Hot Topic, Inc.*		2,038,632
	42,100	Insight Enterprises, Inc.*		791,480
	34,000	K-Swiss, Inc.		818,040
	1,800	Kellwood Co.		73,800
	12,400	Longs Drug Stores Corp.		306,776
	46,300	Movie Gallery, Inc.*		864,884
	2,200	Oxford Industries, Inc.		74,536
	39,500	PETCO Animal Supplies, Inc.*		1,202,775
	7,500	Russell Corp.		131,700
	39,000	Saks, Inc.*		586,560
	40,400	Shopko Stores, Inc.*		616,100
	13,500	Skechers U.S.A., Inc.*		110,025
	10,300	Sonic Automotive, Inc.		236,076
	22,300	Stage Stores, Inc.*		622,170
	9,300	The Finish Line, Inc.*		278,721
	27,600	The Men’s Wearhouse, Inc.*		690,276
	12,400	Zale Corp.*		659,680

				14,603,697

Securities/ Asset Management – 1.4%
	16,500	Affiliated Managers Group, Inc.*		1,148,235
	4,000	BlackRock, Inc.		212,440
	18,400	Gabelli Asset Management, Inc.		732,320
	9,700	Nuveen Investments		258,602
	9,600	SWS Group, Inc.		170,880

				2,522,477

Semiconductors – 3.6%
	30,450	Avnet, Inc.*		659,547
	5,400	Entegris, Inc.*		69,390
	33,300	ESS Technology, Inc.*		566,433
	19,600	Exar Corp.*		334,768
	29,000	Integrated Silicon Solution, Inc.*		454,430
	4,900	Littelfuse, Inc.*		141,218
	159,800	LSI Logic Corp.*		1,417,426
	22,000	LTX Corp.*		330,660
	49,200	Micrel, Inc.*		766,536
	21,500	Photronics, Inc.*		428,280
	5,300	Rainbow Technologies, Inc.*		59,678
	67,000	RF Micro Devices, Inc.*		673,350
	31,100	Silicon Storage Technology, Inc.*		342,100
	6,400	Standard Microsystems Corp.*		161,920
	6,000	Ultratech, Inc.*		176,220

				6,581,956

Telecommunications – 0.3%
	29,600	Audiovox Corp.*		380,064
	17,200	TALK America Holdings, Inc.*		198,144

				578,208

Telecommunications Equipment – 2.2%
	24,300	Anixter International, Inc.*		628,884
	57,300	Arris Group, Inc.*		414,852
	54,100	Artesyn Technologies, Inc.*		460,932
	8,200	Black Box Corp.		377,774
	33,400	CommScope, Inc.*		545,422
	4,800	EMS Technologies, Inc.*		98,592
	43,700	Enterasys Networks, Inc.*		163,875
	22,200	Optical Communication Products, Inc.*		82,140
	28,500	Plantronics, Inc.*		930,525
	2,900	Verint Systems, Inc.*		65,424
	11,600	ViaSat, Inc.*		222,024

				3,990,444

Telephone – 0.5%
	21,200	IDT Corp.*		469,580
	37,200	Time Warner Telecom, Inc.*		376,836

				846,416

Thrifts – 1.7%
	14,900	Commercial Federal Corp.		397,979
	3,450	Doral Financial Corp.		111,366
	4,500	FirstFed Financial Corp.*		195,750
	49,400	Flagstar Bancorp, Inc.		1,058,148
	5,700	Flushing Financial Corp.		104,196
	3,100	Horizon Financial Corp.		54,281
	6,200	Irwin Financial Corp.		194,680
	10,200	Republic Bancorp, Inc.		137,598
	7,400	Sound Federal Bancorp, Inc.		115,366
	2,900	Sterling Financial Corp.*		99,267
	27,000	W Holding Co., Inc.		502,470
	1,200	WSFS Financial Corp.		53,820

				3,024,921

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)

December 31, 2003



Shares		Description	Value
Common Stocks – (continued)

Truck Freight – 0.2%
	8,000	Covenant Transport, Inc.*	$	152,080
	7,900	Landstar System, Inc.*		300,516

				452,596

Wireless – 1.4%
	19,000	Boston Communications Group, Inc.*		176,510
	16,600	Ditech Communications Corp.*		317,060
	113,600	Powerwave Technologies, Inc.*		869,040
	14,900	Telephone and Data Systems, Inc.		931,995
	7,400	United States Cellular Corp.*		262,700

				2,557,305

TOTAL COMMON STOCKS
(Cost $167,324,060)			$	180,778,422

TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL
(Cost $167,324,060)			$	180,778,422

Securities Lending Collateral 2.4%

	4,513,900	Boston Global Investment Trust – Enhanced Portfolio	$	4,513,900

TOTAL SECURITIES LENDING COLLATERAL
(Cost $4,513,900)			$	4,513,900

TOTAL INVESTMENTS
(Cost $171,837,960)			$	185,292,322


*		Non-income producing security.

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

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

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 during the one-year reporting period that ended December 31, 2003.

Market Review

The first quarter of 2003 was volatile as investors dealt with conflicting economic reports and the start of the war in Iraq. Most major corporations remained fiscally restrained in reaction to the continued low-demand environment. In the second, third, and fourth quarters, the U.S. equity market rallied sharply due to easing geopolitical concerns, a marked shift in investor sentiment, and an improved economic backdrop. While the gains were broad based, the largest returns were found in both highly speculative and smaller cap areas. Investors seemed optimistic that an improving economy would further stimulate demand for U.S. products and services.

Investment Objective

The Fund seeks long-term growth of capital.

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2003*


		% of
Company	Business	Net Assets

Microsoft Corp.	Computer Software		4.2	%
Wal-Mart Stores, Inc.	Retail Apparel		3.6
Pfizer, Inc.	Drugs		3.4
Intel Corp.	Semiconductors		3.3
Exxon Mobil Corp.	Energy Resources		3.3
Cisco Systems, Inc.	Computer Hardware		3.2
QUALCOMM, Inc.	Telecommunications Equipment		2.9
General Electric Co.	Industrial Parts		2.8
Viacom, Inc. Class B	Media		2.8
Citigroup, Inc.	Banks		2.8

Performance Review

Over the one-year reporting period that ended December 31, 2003, the Fund generated a cumulative total return of 23.74%. This return compares to the Fund’s benchmark, the Russell 1000 Growth Index (with dividends reinvested), and its former benchmark, the S&P 500 Index (with dividends reinvested), which generated cumulative total returns of 29.75% and 28.69%, respectively.

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Shareholder Letter (continued)

While the Fund produced strong results, it underperformed its benchmark on a relative basis primarily due to our high quality bias. In addition, although all of the Fund’s Technology holdings had positive absolute results this year, relative performance was negatively impacted by stock selection and an underweight in this area. Relative performance suffered because the Fund did not own many of the more speculative, aggressive names that had suffered the most in the last three years but which led the tech rally in 2003. These are companies in which we choose not to invest as most of them do not meet our criteria for high quality, long-term growth investments. Our disciplined investment philosophy is to buy high quality growth companies with a strong business franchise, free cash flow, recurring revenue, favorable long-term prospects, excellent management, and strong financials. We are long-term investors and believe that the companies we own will ultimately come out on top and outperform over the full market cycle. Most notably, Microsoft Corp. and Dell, Inc. suffered despite their strong fundamentals. These companies are often viewed as technology safe-havens and, in the recent tech market rally, many investors shifted out of these companies into more aggressive stocks.

Despite an underweight in the Healthcare sector, which aided performance, stock selection negatively impacted results. The Fund was hurt by the underperformance of many large pharmaceutical companies. Most of the portfolio’s Healthcare holdings are in the pharmaceutical industry because these companies often fit our criteria for long-term growth. These criteria include pricing power, free cash flow, high return on invested capital, and long product life cycles. However, the pharmaceutical group was down due to lackluster new product launches, competition from generic producers, and impending patent expirations. Merck & Co., Inc., Johnson & Johnson, and Schering-Plough Corp. ended the year in negative territory. Merck was down due to competitive issues with some of its products as well as failed clinical trials of two late-stage pipeline drugs. Johnson & Johnson suffered from a weaker than expected launch of its product to treat coronary artery disease due to numerous manufacturing issues.

Despite a difficult start to the year due to economic and geopolitical turmoil and uncertainty, Media companies finished the year in positive territory. Although national advertising showed earlier signs of increasing strength, recovery of local advertising lagged, as it typically does, and this caused concern for companies exposed to this sector. In the latter part of the year, the Fund’s Media holdings benefited from several indicators that an advertising recovery is underway. Univision Communications, Inc., Viacom, Inc., Time Warner, Inc., and Clear Channel Communications, Inc. were examples of holdings that performed well and significantly contributed to performance. The Fund’s companies in the Consumer Discretionary sector fared well as travel and lodging related companies rebounded this year as the fear of SARS and geopolitical tensions eased. In the second quarter, travel volumes reached pre-war volumes and remained strong the rest of the year. Cendant Corp., Marriott International, Inc., and Starwood Hotels & Resorts Worldwide, Inc. rallied with the travel industry.

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

Goldman Sachs Growth Equity Management Team

January 15, 2004

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Performance Summary

December 31, 2003

The following graph shows the value as of December 31, 2003, of a $10,000 investment made on April 30, 1998 (commencement of operations). For comparative purposes, the performance of the Fund’s new benchmark, the Russell 1000 Growth Index^(a) (with dividends reinvested), as well as the Fund’s former benchmark, (the Standard and Poor’s 500 Index (with dividends reinvested) (“S&P 500 Index”)), are shown. This performance data represents past performance and should not be considered indicative of future performance which will fluctuate with changes in market conditions. These performance fluctuations will cause an investor’s shares, when redeemed, to be worth more or less than their original cost. Performance reflects Fund level expenses but does not reflect fees and expenses associated with any variable annuity contract or variable life insurance policy that uses the Fund as an investment option for any contract or policy. Had performance reflected all of those fees and expenses, performance would have been reduced. In addition to the investment adviser’s decisions regarding issuer/industry/country investment selection and allocation, other factors may affect Fund performance. These factors include, but are not limited to, Fund operating fees and expenses, portfolio turnover, and subscription and redemption cash flows affecting a Fund.

Capital Growth Fund’s Lifetime Performance

Growth of a $10,000 investment, Distributions Reinvested from April 30, 1998 to December 31, 2003.


	Since Inception	Five Years	One Year




Average Annual Total Return Through December 31, 2003




Capital Growth Fund (commenced April 30, 1998)	1.08%	-1.29%	23.74%

(a) Effective December 1, 2003, the Russell 1000 Growth Index replaced the S&P 500 Index as the Fund’s benchmark. The Russell 1000 Growth Index is an unmanaged index that measures the performance of companies with higher price to earnings ratios and higher forecasted growth values compared to the S&P 500. In the Investment Adviser’s opinion, the Russell 1000 Growth Index is a more appropriate benchmark against which to measure the performance of the Fund. The Index figures do not reflect any deduction for fees, expenses or taxes.

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Statement of Investments

December 31, 2003



Shares		Description	Value
Common Stocks – 97.7%

Banks – 4.6%
	103,916	Citigroup, Inc.	$	5,044,083
	20,180	State Street Corp.		1,050,974
	38,300	Wells Fargo & Co.		2,255,487

				8,350,544

Biotechnology – 1.0%
	28,520	Amgen, Inc.*		1,762,536

Brokers – 1.8%
	25,465	Merrill Lynch & Co., Inc.		1,493,522
	28,855	Morgan Stanley		1,669,839

				3,163,361

Chemicals – 2.4%
	30,855	3M Co.		2,623,601
	37,214	E.I. du Pont de Nemours & Co.		1,707,750

				4,331,351

Computer Hardware – 6.6%
	233,200	Cisco Systems, Inc.*		5,664,428
	113,365	Dell, Inc.*		3,849,875
	188,000	EMC Corp.*		2,428,960

				11,943,263

Computer Software – 5.7%
	20,575	Electronic Arts, Inc.*		983,074
	30,255	Intuit, Inc.*		1,600,792
	276,275	Microsoft Corp.		7,608,613

				10,192,479

Defense/ Aerospace – 0.5%
	15,925	Lockheed Martin Corp.		818,545

Drugs – 9.1%
	43,940	Eli Lilly & Co.		3,090,300
	46,200	Johnson & Johnson		2,386,692
	29,240	Merck & Co., Inc.		1,350,888
	171,050	Pfizer, Inc.		6,043,197
	42,670	Schering-Plough Corp.		742,031
	66,295	Wyeth		2,814,223

				16,427,331

Energy Resources – 5.3%
	15,650	Anadarko Petroleum Corp.		798,307
	9,915	Apache Corp.		804,106
	23,304	ChevronTexaco Corp.		2,013,233
	144,392	Exxon Mobil Corp.		5,920,072

				9,535,718

Financial Services – 6.3%
	54,350	Fannie Mae		4,079,511
	65,665	Freddie Mac		3,829,583
	102,250	MBNA Corp.		2,540,913
	21,790	SLM Corp.		821,047

				11,271,054

Food & Beverage – 4.1%
	81,260	PepsiCo, Inc.		3,788,341
	35,465	The Coca-Cola Co.		1,799,849
	30,590	Wm. Wrigley Jr. Co.		1,719,464

				7,307,654

Forest – 0.5%
	14,210	Weyerhaeuser Co.		909,440

Home Products – 4.3%
	38,200	Avon Products, Inc.		2,578,118
	35,445	Colgate-Palmolive Co.		1,774,022
	21,621	Energizer Holdings, Inc.*		812,085
	26,460	The Procter & Gamble Co.		2,642,825

				7,807,050

Hotels – 4.1%
	190,015	Cendant Corp.*		4,231,634
	42,880	Marriott International, Inc.		1,981,056
	31,090	Starwood Hotels & Resorts Worldwide, Inc.		1,118,307

				7,330,997

Industrial Parts – 2.8%
	163,900	General Electric Co.		5,077,622

Information Services – 5.0%
	100,100	First Data Corp.		4,113,109
	13,545	Moody’s Corp.		820,150
	65,800	Sabre Holdings Corp.		1,420,622
	37,290	The McGraw-Hill Cos., Inc.		2,607,317

				8,961,198

Internet – 0.6%
	16,140	eBay, Inc.*		1,042,483

Leisure & Entertainment – 0.2%
	9,020	Harrah’s Entertainment, Inc.		448,925

Media – 13.2%
	47,698	Cablevision Systems New York Group*		1,115,656
	98,218	Clear Channel Communications, Inc.		4,599,549
	14,600	Cox Communications, Inc.*		502,970
	46,230	EchoStar Communications Corp.*		1,571,820
	56,815	Lamar Advertising Co.*		2,120,336
	112,000	Liberty Media Corp. Series A*		1,331,680
	28,196	Metro-Goldwyn-Mayer, Inc.*		481,870
	181,710	Time Warner, Inc.*		3,268,963
	78,450	Univision Communications, Inc.*		3,113,680
	20,010	Valassis Communications, Inc.*		587,293
	113,818	Viacom, Inc. Class B		5,051,243

				23,745,060

Medical Providers – 0.7%
	47,595	Caremark Rx, Inc.*		1,205,581

Oil Services – 0.3%
	10,900	Schlumberger Ltd.		596,448

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND



Shares		Description	Value
Common Stocks – (continued)

Processors – 0.4%
	26,380	CheckFree Corp.*	$	729,407

Property Insurance – 0.9%
	24,500	AMBAC Financial Group, Inc.		1,700,055

Publishing – 1.2%
	11,000	Gannett Co., Inc.		980,760
	21,930	Tribune Co.		1,131,588

				2,112,348

Retail Apparel – 5.8%
	42,855	Dollar Tree Stores, Inc.*		1,288,221
	28,965	Family Dollar Stores, Inc.		1,039,264
	27,700	Lowe’s Companies, Inc.		1,534,303
	122,330	Wal-Mart Stores, Inc.		6,489,607

				10,351,395

Security/ Asset Management – 0.8%
	124,510	The Charles Schwab Corp.		1,474,198

Semiconductors – 5.7%
	185,600	Intel Corp.		5,976,320
	108,700	Texas Instruments, Inc.		3,193,606
	26,550	Xilinx, Inc.*		1,028,547

				10,198,473

Telecommunications Equipment – 2.9%
	95,730	QUALCOMM, Inc.		5,162,719

Thrifts – 0.5%
	7,915	Golden West Financial Corp.		816,749

Wireless – 0.4%
	72,290	Crown Castle International Corp.*		797,359

TOTAL COMMON STOCKS
(Cost $173,910,986)			$	175,571,343

Exchange Traded Fund – 0.6%

	8,700	SPDR Trust Series 1	$	968,136

TOTAL EXCHANGE TRADED FUND
(Cost $800,979)			$	968,136



Principal		Interest			Maturity
Amount		Rate			Date		Value
Repurchase Agreement – 1.7%

Joint Repurchase Agreement Account II^
$	3,100,000		0.99	%		01/02/2004	$	3,100,000
Maturity Value $3,100,171

TOTAL REPURCHASE AGREEMENT
(Cost $3,100,000)							$	3,100,000

TOTAL INVESTMENTS
(Cost $177,811,965)							$	179,639,479

* Non-income producing security.


^	Joint repurchase agreement was entered into on December 31, 2003.

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

The accompanying notes are an integral part of these financial statements. 27

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 during the one-year reporting period that ended December 31, 2003.

Market Review

The U.S. equity markets generated strong results in 2003, ending the year in positive territory for the first time since 1999. All the major indices rose significantly, with the S&P 500 Index returning 28.69% and the technology-laden NASDAQ Composite Index soaring 50.01%, the third best year since its inception in 1971. Despite the war in Iraq, renewed terrorist fears, U.S. deficits, and a tumbling dollar, stock prices rose in nine out of the last ten months of the year. Rekindled investor confidence, an increased appetite for risk, and the anticipation of an economic rebound drove stock prices higher. The economy gained momentum during the year, with third quarter gross domestic product (“GDP”) rising 8.2% – its fastest level in two decades. The preliminary estimate for fourth quarter GDP was 4.0%, a solid gain, but somewhat lower than market expectations.

Investment Objective

The Fund seeks long-term capital appreciation.

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2003*


		% of
Company	Business	Net Assets

iStar Financial, Inc.	Other REIT		2.1	%
Energy East Corp.	Electrical Utilities		2.0
M&T Bank Corp.	Banks		1.8
The Williams Companies, Inc.	Diversified Energy		1.8
RenaissanceRe Holdings Ltd.	Property Insurance		1.8
XTO Energy, Inc.	Energy Resources		1.7
City National Corp.	Banks		1.7
Activision, Inc	Computer Software		1.7
Lamar Advertising Co.	Media		1.7
Willis Group Holdings Ltd.	Property Insurance		1.6

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Performance Review

Over the one-year reporting period that ended December 31, 2003, the Fund generated a cumulative total return of 28.39%. Over the same time period, the Fund’s benchmark, the Russell Midcap Value Index (with dividends reinvested) generated a cumulative total return of 38.07%.

Some of the largest detractors to performance during the year were stocks in the Consumer Cyclical and Healthcare sectors. The Stanley Works and Abercrombie & Fitch Co. were large detractors in the Consumer Cyclical area. These stocks were weak performers in an increasingly challenging environment for consumer spending. Despite reporting strong sales results, Abercrombie & Fitch declined in the latter part of the year after remaining cautious on sales outcomes for the remainder of 2003. Within Healthcare, AmerisourceBergen Corp. and Covance, Inc. detracted from results. AmerisourceBergen was driven lower due to negative news regarding its product sales. After initiating a position in Covance, a leading drug development services firm, the company disappointed investors with a decrease in backlog related to consolidation among its customer base. After an evaluation, it was our belief that Covance’s fundamentals remained intact. These include its dominant market position, growing market share, and strong free cash flow. Accordingly, we retained our position in the company.

In the current environment, we found opportunities in a number of “emerging” quality companies. Often, these businesses are experiencing periods of uncertainty but are taking steps to resolve those uncertainties. Many of these emerging quality companies have both internal and external forces working in their favor. Thus, some of our favorite situations are those where investment success does not depend on a single factor.

A recent example of emerging quality in the portfolio is CIT Group, Inc. CIT Group was purchased by Tyco in 2001 and subsequently sold in 2002. While CIT Group was owned by Tyco, its cost of debt spiked due to concerns about reported accounting irregularities and other scandals at Tyco. Now disassociated from Tyco, CIT Group has started to refinance high cost debt and pay down credit lines.

iStar Financial, Inc., a leading provider of customized financing to public and private owners of commercial real estate, was a top contributor to performance for the year. iStar continues to benefit from its high, safe dividend yield and good credit quality. Other strong performers included Countrywide Financial Corp., as it expanded and benefited from its mortgage banking business. Also in Financials, City National Corp. was a strong performer. We have reduced the Countrywide position to capture profits. City National performed well due to improving credit quality and an increase in non-interest income.

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

Goldman Sachs Value Portfolio Management Team

January 15, 2004

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Performance Summary

December 31, 2003

The following graph shows the value as of December 31, 2003, 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 (with dividends reinvested), 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. Performance reflects Fund level expenses but does not reflect fees and expenses associated with any variable annuity contract or variable life insurance policy that uses the Fund as an investment option for any contract or policy. Had performance reflected all of those fees and expenses, performance would have been reduced. In addition to the investment adviser’s decisions regarding issuer/ industry/ country investment selection and allocation, other factors may affect Fund performance. These factors include, but are not limited to, Fund operating fees and expenses, portfolio turnover, and subscription and redemption cash flows affecting a Fund.

Mid Cap Value Fund’s Lifetime Performance

Growth of a $10,000 investment, Distributions Reinvested from May 1, 1998 to December 31, 2003.


	Since Inception	Five Years	One Year




Average Annual Total Return Through December 31, 2003




Mid Cap Value Fund (commenced May 1, 1998)	7.89%	12.22%	28.39%

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Statement of Investments

December 31, 2003



Shares		Description	Value
Common Stocks – 93.7%

Apartment – 0.9%
	110,700	AvalonBay Communities, Inc.	$	5,291,460

Bank – 9.7%
	277,657	Banknorth Group, Inc.		9,032,182
	155,500	City National Corp.		9,659,660
	261,377	KeyCorp		7,663,574
	108,032	M&T Bank Corp.		10,619,546
	86,435	Mercantile Bankshares Corp.		3,939,707
	170,500	North Fork Bancorporation, Inc.		6,900,135
	260,287	SouthTrust Corp.		8,519,193

				56,333,997

Biotechnology – 0.5%
	113,000	MedImmune, Inc.*		2,870,200

Brokers – 0.8%
	58,961	The Bear Stearns Companies, Inc.		4,713,932

Chemicals – 3.2%
	67,250	Carlisle Cos., Inc.		4,092,835
	228,300	Monsanto Co.		6,570,474
	201,200	Praxair, Inc.		7,685,840

				18,349,149

Computer Hardware – 4.1%
	120,400	CDW Corp.		6,954,304
	75,400	Storage Technology Corp.*		1,941,550
	208,900	Symbol Technologies, Inc.		3,528,321
	141,600	Tech Data Corp.*		5,620,104
	81,848	Zebra Technologies Corp.*		5,432,252

				23,476,531

Computer Software – 3.0%
	530,700	Activision, Inc.*		9,658,740
	306,745	NetIQ Corp.*		4,064,371
	102,286	Symantec Corp.*		3,544,210

				17,267,321

Consumer Durables – 0.5%
	77,000	The Stanley Works		2,915,990

Defense/ Aerospace – 3.0%
	55,200	ITT Industries, Inc.		4,096,392
	97,600	Precision Castparts Corp.		4,432,016
	289,092	Rockwell Collins, Inc.		8,681,433

				17,209,841

Diversified Energy – 1.8%
	1,064,600	The Williams Companies, Inc.		10,454,372

Drugs – 2.7%
	109,800	AmerisourceBergen Corp.		6,165,270
	123,800	Charles River Laboratories International, Inc.*		4,250,054
	202,500	Covance, Inc.*		5,427,000

				15,842,324

Electrical Utilities – 9.4%
	61,700	Cinergy Corp.		2,394,577
	512,556	Energy East Corp.		11,481,255
	115,421	Entergy Corp.		6,594,002
	238,739	FirstEnergy Corp.		8,403,613
	51,188	FPL Group, Inc.		3,348,719
	145,300	PG&E Corp.*		4,034,981
	86,255	Pinnacle West Capital Corp.		3,451,925
	159,963	PPL Corp.		6,998,381
	110,225	Puget Energy, Inc.		2,620,048
	68,585	SCANA Corp.		2,349,036
	85,100	Wisconsin Energy Corp.		2,846,595

				54,523,132

Energy Resources – 4.1%
	162,600	Evergreen Resources, Inc.*		5,286,126
	58,800	Murphy Oil Corp.		3,840,228
	103,000	Patina Oil & Gas Corp.		5,045,970
	345,700	XTO Energy, Inc.		9,783,310

				23,955,634

Environmental Services – 1.2%
	259,776	Republic Services, Inc.		6,658,059

Financial Services – 2.8%
	203,400	CIT Group, Inc.		7,312,230
	115,008	Countrywide Financial Corp.		8,723,357

				16,035,587

Food & Beverage – 0.4%
	106,100	The Pepsi Bottling Group, Inc.		2,565,498

Forest – 0.9%
	245,874	Packaging Corp. of America		5,374,806

Health Insurance – 1.0%
	82,179	Aetna, Inc.		5,553,657

Heavy Electrical – 0.9%
	142,315	Rockwell Automation, Inc.		5,066,414

Home Products – 1.3%
	73,600	The Clorox Co.		3,574,016
	106,840	The Estee Lauder Companies, Inc.		4,194,538

				7,768,554

Hotel – 0.8%
	264,043	Hilton Hotels Corp.		4,523,056

Industrial Parts – 3.1%
	89,064	American Standard Companies, Inc.*		8,968,745
	83,821	Eaton Corp.		9,050,991

				18,019,736

Information Services – 0.7%
	107,200	Anteon International Corp.*		3,864,560

Internet – 0.3%
	31,600	Getty Images, Inc.*		1,584,108

The accompanying notes are an integral part of these financial statements. 31

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Statement of Investments (continued)

December 31, 2003



Shares		Description	Value
Common Stocks – (continued)

Leisure & Entertainment – 0.9%
	101,171	Harrah’s Entertainment, Inc.	$	5,035,281

Life Insurance – 1.4%
	113,105	Torchmark Corp.		5,150,802
	185,200	UnumProvident Corp.		2,920,604

				8,071,406

Media – 1.7%
	257,755	Lamar Advertising Co.*		9,619,417

Mining – 0.9%
	92,829	Nucor Corp.		5,198,424

Motor Vehicle – 1.9%
	37,939	Johnson Controls, Inc.		4,405,476
	108,778	Lear Corp.		6,671,355

				11,076,831

Office Industrial – 2.2%
	106,000	Highwoods Properties, Inc.		2,692,400
	111,874	Liberty Property Trust		4,351,899
	176,300	Prentiss Properties Trust		5,816,137

				12,860,436

Oil Refining – 1.3%
	146,600	Sunoco, Inc.		7,498,590

Other REIT – 3.2%
	311,762	iStar Financial, Inc.		12,127,542
	112,153	Plum Creek Timber Co., Inc.		3,415,059
	67,225	Public Storage, Inc.		2,916,892

				18,459,493

Packaging – 1.2%
	70,500	Sealed Air Corp.*		3,816,870
	123,119	Sonoco Products Co.		3,031,190

				6,848,060

Property Insurance – 6.3%
	36,254	AMBAC Financial Group, Inc.		2,515,665
	85,400	Axis Capital Holdings Ltd.		2,500,512
	147,762	PartnerRe Ltd.		8,577,584
	210,242	RenaissanceRe Holdings Ltd.		10,312,370
	75,400	The St. Paul Companies, Inc.		2,989,610
	277,130	Willis Group Holdings Ltd.		9,441,819

				36,337,560

Publishing – 1.0%
	213,322	A.H. Belo Corp.		6,045,545

Restaurants – 0.9%
	150,354	Yum! Brands, Inc.*		5,172,178

Retail Apparel – 7.3%
	73,000	Abercrombie & Fitch Co.*		1,803,830
	141,025	AnnTaylor Stores Corp.*		5,499,975
	198,640	Federated Department Stores, Inc.		9,361,903
	306,000	J. C. Penney Co., Inc.		8,041,680
	146,700	Limited Brands		2,645,001
	100,300	Michaels Stores, Inc.		4,433,260
	168,800	Ross Stores, Inc.		4,461,384
	258,341	The TJX Companies, Inc.		5,696,419

				41,943,452

Semiconductors – 0.9%
	177,700	Integrated Circuit Systems, Inc.*		5,062,673

Telecommunications Equipment – 0.8%
	569,160	Tellabs, Inc.*		4,798,019

Telephone – 0.8%
	145,000	CenturyTel, Inc.		4,729,900

Thrifts – 1.4%
	208,700	New York Community Bancorp, Inc.		7,941,035

Tobacco – 1.0%
	157,745	UST, Inc.		5,629,919

Truck Freight – 1.5%
	159,420	Landstar System, Inc.*		6,064,337
	78,300	Yellow Roadway Corp.*		2,832,111

				8,896,448

TOTAL COMMON STOCKS
(Cost $441,776,067)			$	541,442,585

Exchange Traded Fund – 1.7%

	106,200	iShares Russell Midcap Value Index Fund	$	9,908,460

TOTAL EXCHANGE TRADED FUND
(Cost $9,666,324)			$	9,908,460

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND



Principal		Interest			Maturity
Amount		Rate			Date		Value
Repurchase Agreement – 3.8%

Joint Repurchase Agreement Account II^
$	22,100,000		0.99	%		01/02/2004	$	22,100,000
Maturity Value $22,101,216

TOTAL REPURCHASE AGREEMENT
(Cost $22,100,000)							$	22,100,000

TOTAL INVESTMENTS
(Cost $473,542,391)							$	573,451,045

* Non-income producing security.


^	Joint repurchase agreement was entered into on December 31, 2003.

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

The accompanying notes are an integral part of these financial statements. 33

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 during the one-year reporting period that ended December 31, 2003.

Market Overview

As 2003 began, the global equity markets resumed the downward decline that characterized much of the previous year. Rising geopolitical risks and related uncertainty further darkened a backdrop already defined by gloomy economic data releases, slowing consumption, and declining confidence. Unsurprisingly, investors paid less attention to company-specific fundamental developments and even to the economy than to daily developments in terms of the war and world politics. The global stock markets then rallied in the second quarter, as the major combat in Iraq ended, oil prices fell, and business confidence rose. In the third quarter, investor attention moved away from the geopolitical concerns and refocused on corporate and macroeconomic news. Global investors were encouraged in the early stages of the quarter by U.S. companies’ second quarter earnings results which generally exceeded expectations. In Japan, both private and official forecasts for economic growth improved. During the fourth quarter, the equity markets continued to rise. Investor confidence was sustained by strong economic data releases and corporate news that indicated profits continued to grow at a faster than expected pace. Strong gains were made in October and December but currency concerns and the return of geopolitical tensions weighed on investor sentiment in November.

Investment Objective

The Fund seeks long-term capital appreciation.

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2003*


			% of
Company	Country	Business	Net Assets

Vodafone Group PLC	United Kingdom	Telecommunications Services		4.7	%
Total Fina Elf SA Class B	France	Energy		3.7
GlaxoSmithKline PLC	United Kingdom	Pharmaceuticals & Biotechnology		3.6
Novartis AG	Switzerland	Pharmaceuticals & Biotechnology		3.6
ING Groep NV	Netherlands	Diversified Financials		2.3
RICOH CO., LTD	Japan	Technology Hardware and
		Equipment		2.3
Nestle SA	Switzerland	Food, Beverage & Tobacco		2.3
Banca Intesa SpA	Italy	Banks		2.2
Zurich Financial Services AG	Switzerland	Insurance		2.2
Diageo PLC	United Kingdom	Food, Beverage & Tobacco		2.1

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Performance Review

Over the one-year reporting period that ended December 31, 2003, the Fund generated a cumulative total return of 35.49%. Over the same time period, the Fund’s benchmark, the Morgan Stanley Capital International (“MSCI”) Europe, Australasia and Far East (“EAFE”) Index (unhedged with dividends reinvested), generated a cumulative total return of 39.17%.

While the Fund generated strong absolute performance, it underperformed its benchmark on a relative basis. The majority of the Fund’s underperformance versus its benchmark occurred during the third quarter of 2003 and is largely explained by two factors. First, we underestimated the extent to which the equity markets in Japan would be pushed ahead by recovery and restructuring hopes. Second, larger, higher quality companies that weathered the difficult markets of the last three years did not participate in the recent market rally as much as their more cyclical, smaller, balance sheet-challenged peers. Our stock selection, which has a bias towards high quality companies that we believe should outperform over the market cycle, was therefore a leading contributor to the Fund’s underperformance.

On a stock-specific level, leading contributors to performance included overweight positions in European Aeronautic Defence & Space Co. (“EADS”), a European aviation company that owns Airbus, and Hyundai Motor Co. Ltd., the Korean automobile manufacturer. Top detractors from relative performance included overweight positions in ROHM CO., LTD., a Japanese semiconductor manufacturer, and YUKOS ADR, the largest Russian oil company.

During the period, we initiated a position in Banca Intesa SpA, Italy’s largest retail bank by assets. In addition to having a high quality Italian retail banking franchise, its new management team has successfully restructured its Latin American and corporate banking units. To purchase Banca Intesa, we reduced the Fund’s position in Royal Bank of Scotland Group. The stock had performed strongly and we took the opportunity to realize gains.

During the fourth quarter we exited our position in Tesco, the leading UK supermarket chain. Over recent months, Tesco has shown very strong operational performance, growing its market share and reporting impressive sales growth. However, after a very strong share price performance we believed Tesco’s shares were trading around our fair value target at the time we decided to exit our Tesco position, and our focus turned to concerns over the UK retail environment in the coming months. We believed that after its likely takeover by Wm. Morrison, Safeway would be a more difficult competitor, and we would also see more aggressive pricing from ASDA (a subsidiary of Wal-Mart). Given these concerns, we took the opportunity to exit our position in Tesco.

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

Goldman Sachs International Equity Portfolio Management Team

January 15, 2004

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Performance Summary

December 31, 2003

The following graph shows the value as of December 31, 2003, of a $10,000 investment made on January 12, 1998 (commencement of operations). For comparative purposes, the performance of the Fund’s benchmark (the Morgan Stanley Capital International Europe, Australasia and Far East Index (with dividends reinvested), (“MSCI EAFE (unhedged)”), is shown. The Fund’s benchmark utilizes the local close in its valuation, which could contribute to a performance variation with the Fund given the Fund’s valuation policy. 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. Performance reflects Fund level expenses but does not reflect fees and expenses associated with any variable annuity contract or variable life insurance policy that uses the Fund as an investment option for any contract or policy. Had performance reflected all of those fees and expenses, performance would have been reduced. In addition to the investment adviser’s decisions regarding issuer/ industry/ country investment selection and allocation, other factors may affect Fund performance. These factors include, but are not limited to, Fund operating fees and expenses, Portfolio turnover, and subscription and redemption cash flows affecting a Fund.

International Equity Fund’s Lifetime Performance

Growth of a $10,000 investment, Distributions Reinvested from January 12, 1998 to December 31, 2003.


	Since Inception	Five Years	One Year




Average Annual Total Return Through December 31, 2003




International Equity Fund (commenced January 12, 1998)	2.84%	-0.31%	35.49%

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Statement of Investments

December 31, 2003



Shares		Description	Value

Common Stocks – 97.4%

Australia – 1.0%
	449,340	Promina Group Ltd. (Insurance)	$	1,109,725

China – 0.4%
	520,000	China Life Insurance Co. Ltd.* (Insurance)		425,310

Denmark – 0.5%
	70	A P Moller – Maersk A/S (Transportation)		503,992

Finland – 2.1%
	128,904	Nokia Oyj (Technology Hardware & Equipment)		2,199,962

France – 15.2%
	65,960	Credit Agricole SA* (Banks)		1,573,789
	69,387	European Aeronautic Defence & Space Co. (Capital Goods)		1,654,928
	75,026	France Telecom SA* (Telecommunication Services)		2,141,087
	23,507	L’Oreal SA (Household & Personal Products)		1,928,674
	14,535	Lafarge SA (Materials)		1,298,177
	28,635	LVMH Moet Hennessy Louis Vuitton SA (Consumer Durables & Apparel)		2,089,410
	11,443	Pinault-Printemps-Redoute SA (Retailing)		1,107,990
	10,762	PSA Peugeot Citroen (Automobiles & Components)		548,337
	21,059	Total Fina Elf SA Class B (Energy)		3,902,892

				16,245,284

Germany – 3.7%
	30,866	Bayerische Motoren Werke (BMW) AG (Automobiles & Components)		1,432,771
	19,635	Deutsche Boerse AG (Diversified Financials)		1,073,453
	9,003	SAP AG (Software & Services)		1,489,033

				3,995,257

Greece – 1.0%
	35,190	Alpha Bank A.E. (Banks)		1,064,783

Hong Kong – 1.5%
	304,000	Esprit Holdings Ltd. (Retailing)		1,015,574
	42,800	Hang Seng Bank Ltd. (Banks)		562,908

				1,578,482

Hungary – 0.2%
	9,460	OTP Bank Rt. GDR (Banks)		248,325

Ireland – 2.4%
	99,423	Allied Irish Banks PLC (Banks)		1,587,099
	73,264	Bank of Ireland (Banks)		1,000,637

				2,587,736

Italy – 3.0%
	602,500	Banca Intesa SpA (Banks)		2,359,701
	42,236	ENI SpA (Energy)		799,527

				3,159,228

Japan – 18.1%
	45,300	Credit Saison Co. Ltd. (Diversified Financials)		1,027,555
	48,000	Fuji Photo Film Co. Ltd. (Consumer Durables & Apparel)		1,568,433
	43,200	Honda Motor Co. Ltd. (Automobiles & Components)		1,941,203
	73,500	Konica Minolta Holdings, Inc. (Technology Hardware & Equipment)		997,525
	66,000	Mitsui Fudosan Co. Ltd. (Real Estate)		599,358
	108,000	Nomura Holdings, Inc. (Diversified Financials)		1,833,303
	251	NTT DoCoMo, Inc. (Telecommunication Services)		574,151
	20,200	ORIX Corp. (Diversified Financials)		1,675,909
	122,000	RICOH CO., LTD. (Technology Hardware & Equipment)		2,418,264
	13,200	ROHM CO., LTD. (Semiconductors & Semiconductor Equipment)		1,554,984
	36,300	Seiko Epson Corp. (Technology Hardware & Equipment)		1,694,124
	50,400	Shin-Etsu Chemical Co. Ltd. (Materials)		2,069,838
	11,270	USS Co. Ltd. (Retailing)		799,296
	51,000	Yamato Transport Co. Ltd. (Transportation)		603,598

				19,357,541

Netherlands – 5.1%
	107,125	ING Groep NV (Diversified Financials)		2,504,341
	5,073	Royal Dutch Petroleum Co. (Energy)		265,359
	43,814	STMicroelectronics NV* (Semiconductors & Semiconductor Equipment)		1,188,431
	45,379	VNU NV (Media)		1,432,241

				5,390,372

Russia – 1.3%
	6,700	Mobile Telesystems ADR (Telecommunication Services)		554,760
	20,470	YUKOS ADR (Energy)		859,740

				1,414,500

Singapore – 0.8%
	116,000	United Overseas Bank Ltd. (Banks)		903,101

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Statement of Investments (continued)

December 31, 2003



Shares		Description	Value

Common Stocks – (continued)

South Korea – 3.9%
	59,874	Hana Bank GDR† (Banks)	$	1,105,520
	103,490	Hyundai Motor Co. Ltd. GDR † (Automobiles & Components)		2,199,162
	4,600	Samsung Electronics Co. Ltd. GDR (Semiconductors & Semiconductor Equipment)		868,571

				4,173,253

Spain – 0.5%
	23,496	Industria de Diseno Textil SA (Retailing)		476,621

Switzerland – 11.6%
	14,086	Adecco SA (Commercial Services & Supplies)		909,194
	12,534	Converium Holding AG (Insurance)		665,613
	50,106	Credit Suisse Group (Diversified Financials)		1,827,305
	9,670	Nestle SA (Food Beverage & Tobacco)		2,413,812
	84,490	Novartis AG (Pharmaceuticals & Biotechnology)		3,865,493
	4,842	Syngenta AG (Materials)		325,983
	16,297	Zurich Financial Services AG (Insurance)		2,354,762

				12,362,162

Taiwan – 1.1%
	102,200	Hon Hai Precision Industry Co. Ltd. (Technology Hardware & Equipment)		812,490
	38,100	Taiwan Semiconductor Manufacturing Co. Ltd. ADR* (Semiconductors & Semiconductor Equipment)		390,144

				1,202,634

Thailand – 0.9%
	3,065,500	Krung Thai Bank Public Co. Ltd. (Banks)		951,622

United Kingdom – 23.1%
	193,757	BAA PLC (Transportation)		1,718,077
	101,771	BP PLC (Energy)		825,179
	112,252	British Sky Broadcasting Group PLC* (Media)		1,411,030
	654,116	Cable & Wireless PLC (Telecommunication Services)		1,550,592
	102,588	Capita Group PLC (Commercial Services & Supplies)		446,939
	52,780	Carnival PLC (Hotels Restaurants & Leisure)		2,123,752
	174,474	Diageo PLC (Food Beverage & Tobacco)		2,288,121
	86,979	Exel PLC (Transportation)		1,146,911
	169,255	GlaxoSmithKline PLC (Pharmaceuticals & Biotechnology)		3,895,448
	169,391	Prudential PLC (Insurance)		1,430,970
	41,638	Reckitt Benckiser PLC (Household & Personal Products)		939,681
	2,004,936	Vodafone Group PLC (Telecommunication Services)		4,967,439
	196,285	WPP Group PLC (Media)		1,920,685

				24,664,824

TOTAL COMMON STOCKS
(Cost $90,297,457)			$	104,014,714



Principal		Interest			Maturity
Amount		Rate			Date
							Value
Short-Term Obligation – 1.4%

State Street Bank & Trust Euro Time Deposit
$	1,505,000		0.88	%		01/02/2004	$	1,505,000

TOTAL SHORT-TERM OBLIGATION
(Cost $1,505,000)							$	1,505,000

TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL
(Cost $91,802,457)							$	105,519,714



Shares		Description	Value
Securities Lending Collateral – 0.1%

	44,800	Boston Global Investment Trust – Enhanced Portfolio	$	44,800

TOTAL SECURITIES LENDING COLLATERAL
(Cost $44,800)				44,800

TOTAL INVESTMENTS
(Cost $91,847,257)			$	105,564,514


*		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 $3,304,682, which represents 3.1% of net assets as of December 31, 2003.

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

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND


	As a % of
	net assets
Common Stock Industry Classifications‡

Automobiles & Components		5.7	%
Banks		10.6
Capital Goods		1.5
Commercial Services & Supplies		1.3
Consumer Durables & Apparel		3.4
Diversified Financials		9.3
Energy		6.2
Food Beverage & Tobacco		4.4
Hotels Restaurants & Leisure		2.0
Household & Personal Products		2.7
Insurance		5.6
Materials		3.5
Media		4.5
Pharmaceuticals & Biotechnology		7.3
Real Estate		0.6
Retailing		3.2
Semiconductors & Semiconductor Equipment		3.7
Software & Services		1.4
Technology Hardware & Equipment		7.6
Telecommunication Services		9.2
Transportation		3.7

TOTAL COMMON STOCK		97.4	%


‡		Industry concentrations greater than one tenth of one percent are disclosed.

The accompanying notes are an integral part of these financial statements. 39

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Statements of Assets and Liabilities

December 31, 2003


		Growth and			CORE U.S.
		Income Fund			Equity Fund

Assets:

Investment in securities, at value (identified cost $189,477,661, $336,703,241, $167,324,060, $177,811,965, $473,542,391 and $91,802,457, respectively)		$	229,776,542		$	384,526,086
Securities lending collateral, at value			—			1,778,000
Cash^(a)			43,415			414,177
Foreign currencies, at value (identified cost $473,042)			—			—
Receivables:
	Fund shares sold		413,053			298,861
	Investment securities sold		277,469			—
	Dividends and interest, at value		373,484			456,217
	Forward foreign currency exchange contracts		—			—
	Reimbursement from adviser		20,252			—
	Securities lending income		—			3,639
	Variation margin		—			4,330
Other assets			5,242			4,744

Total assets			230,909,457			387,486,054

Liabilities:

Due to custodian			—			—
Payables:
	Payable upon return of securities loaned		—			1,778,000
	Investment securities purchased		315,766			2,103,965
	Fund shares repurchased		132,254			349,159
	Amounts owed to affiliates		69,936			159,708
	Forward foreign currency exchange contracts		—			—
	Variation margin		—			—
Accrued expenses and other liabilities			75,692			70,174

Total liabilities			593,648			4,461,006

Net Assets:

Paid-in capital			248,911,862			432,296,645
Accumulated undistributed (distributions in excess of) net investment income			117,781			25,303
Accumulated net realized gain (loss) on investment, futures and foreign currency related transactions			(59,012,715	)		(97,151,135	)
Net unrealized gain on investments, futures and translation of assets and liabilities denominated in foreign currencies			40,298,881			47,854,235

NET ASSETS		$	230,315,809		$	383,025,048

Total shares of beneficial interest outstanding, par value $0.001 (unlimited shares authorized)			23,035,394			35,067,116
Net asset value, offering and redemption price per share		$	10.00		$	10.92


(a)		Includes restricted cash of $331,150 and $6,100,000 for CORE U.S. Equity Fund and CORE Small Cap Equity Fund, respectively, relating to initial margin requirements on futures transactions.

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST



CORE Small Cap		Capital			Mid Cap			International
Equity Fund		Growth Fund			Value Fund			Equity Fund



$	180,778,422	$	179,639,479		$	573,451,045		$	105,519,714
	4,513,900		—			—			44,800
	6,100,000		6,783			24,024			511
	—		—			—			474,031
	216,864		96,878			4,621,828			35,524
	119,539		—			1,299,293			670,291
	174,017		163,099			636,358			239,996
	—		—			—			625,188
	—		31,415			—			30,929
	5,947		111			610			97
	—		—			—			—
	6,826		5,099			11,659			2,837

	191,915,515		179,942,864			580,044,817			107,643,918



	3,345,517		—			—			—
	4,513,900		—			—			44,800
	1,963,482		—			1,534,674			—
	163,053		99,733			65,066			105,724
	84,818		50,409			397,238			40,249
	—		—			—			586,409
	9,770		—			—			—
	69,664		98,682			124,800			74,478

	10,150,204		248,824			2,121,778			851,660



	167,852,871		209,050,799			479,772,999			153,870,046
	94,148		33,372			—			(366,918	)
	372,658		(31,217,645	)		(1,758,614	)		(60,485,617	)
	13,445,634		1,827,514			99,908,654			13,774,747

$	181,765,311	$	179,694,040		$	577,923,039		$	106,792,258

	13,992,917		18,747,256			43,241,149			11,268,476
$	12.99	$	9.59		$	13.37		$	9.48

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Statements of Operations

For the Year Ended December 31, 2003


		Growth and			CORE U.S.
		Income Fund			Equity Fund

Investment income:

Dividends^(a)		$	1,092,804		$	2,732,846
Interest (including securities lending income of $56, $9,536, $64,429, $249, $7,897 and $8,090, respectively)			12,406			26,725

Total income			1,105,210			2,759,571

Expenses:

Management fees			336,295			1,180,209
Custody and accounting fees			71,519			78,545
Printing fees			41,661			39,717
Transfer agent fees			17,936			67,440
Professional fees			42,595			42,594
Trustee fees			8,424			8,424
Registration fees			13,150			12,643
Other			6,384			2,500

Total expenses			537,964			1,432,072

Less — expense reductions			(79,131	)		(408	)

Net Expenses			458,833			1,431,664

NET INVESTMENT INCOME			646,377			1,327,907

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

Net realized gain (loss) from:
	Investment transactions		234,857			949,891
	Futures transactions		—			351,850
	Foreign currency related transactions		—			—
Net change in unrealized gain (loss) on:
	Investments		11,541,626			45,688,694
	Futures		—			42,873
	Translation of assets and liabilities denominated in foreign currencies		—			—

Net realized and unrealized gain on investment, futures and foreign currency transactions			11,776,483			47,033,308

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		$	12,422,860		$	48,361,215


(a)		For the Growth and Income, CORE U.S. Equity, CORE Small Cap Equity, Mid Cap Value, and International Equity Funds, foreign taxes withheld on dividends were $1,003, $629, $498, $10,434 and $33,902, respectively.

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST


CORE Small Cap			Capital			Mid Cap			International
Equity Fund			Growth Fund			Value Fund			Equity Fund



$	735,291		$	365,189		$	8,171,749		$	308,938
	80,207			5,215			184,639			11,522

	815,498			370,404			8,356,388			320,460



	428,325			198,348			3,472,612			172,679
	166,975			64,249			101,261			152,701
	30,660			25,334			131,704			53,813
	22,844			10,579			173,631			6,907
	42,594			48,994			36,194			45,294
	8,424			8,424			8,424			8,424
	8,136			10,927			63			6,288
	5,633			11,822			21,076			2,854

	713,591			378,677			3,944,965			448,960

	(125,449	)		(109,185	)		(2,621	)		(213,038	)

	588,142			269,492			3,942,344			235,922

	227,356			100,912			4,414,044			84,538



	6,447,064			(788,467	)		15,688,536			25,377
	24,033			—			—			(12,240	)
	—			—			(737	)		450,616
	16,303,456			8,924,917			97,691,989			7,401,205
	(5,823	)		—			—			10,325
	—			—			—			24,402

	22,768,730			8,136,450			113,379,788			7,899,685

$	22,996,086		$	8,237,362		$	117,793,832		$	7,984,223

The accompanying notes are an integral part of these financial statements. 43

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Statements of Changes in Net Assets

For the Year Ended December 31, 2003



	Growth and			CORE U.S.
	Income Fund			Equity Fund

From operations:

Net investment income	$	646,377		$	1,327,907
Net realized gain (loss) on investment, futures and foreign currency related transactions		234,857			1,301,741
Net change in unrealized gain on investments, futures and translation of assets and liabilities denominated in foreign currencies		11,541,626			45,731,567

Net increase in net assets resulting from operations		12,422,860			48,361,215

Distributions to shareholders:

From net investment income		(561,152	)		(1,302,647	)
From net realized gain on investments and futures transactions		—			—

Total distributions to shareholders		(561,152	)		(1,302,647	)

From share transactions:

Proceeds from sales of shares		11,379,148			33,376,750
Proceeds in connection with mergers		178,951,522			172,009,752
Reinvestment of dividends and distributions		561,152			1,302,647
Cost of shares repurchased		(9,348,414	)		(14,161,752	)

Net increase in net assets resulting from share transactions		181,543,408			192,527,397

TOTAL INCREASE		193,405,116			239,585,965

Net assets:

Beginning of year		36,910,693			143,439,083

End of year	$	230,315,809		$	383,025,048

Accumulated undistributed (distributions in excess of) net investment income	$	117,781		$	25,303

Summary of share transactions:

Shares sold		1,300,174			3,484,303
Shares issued in connection with mergers		18,241,732			16,120,873
Shares issued on reinvestment of dividends and distributions		57,851			123,709
Shares repurchased		(1,100,833	)		(1,564,060	)

NET INCREASE		18,498,924			18,164,825

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST


CORE Small Cap			Capital			Mid Cap			International
Equity Fund			Growth Fund			Value Fund			Equity Fund



$	227,356		$	100,912		$	4,414,044		$	84,538
	6,471,097			(788,467	)		15,687,799			463,753
	16,297,633			8,924,917			97,691,989			7,435,932

	22,996,086			8,237,362			117,793,832			7,984,223



	(137,156	)		(67,672	)		(4,441,591	)		(641,177	)
	(2,020,835	)		—			(5,830,111	)		—

	(2,157,991	)		(67,672	)		(10,271,702	)		(641,177	)



	9,341,036			9,098,379			161,701,075			3,347,815
	110,388,436			148,549,781			—			85,111,633
	2,157,991			67,672			10,271,702			641,177
	(7,965,049	)		(4,243,477	)		(59,108,989	)		(2,865,383	)

	113,922,414			153,472,355			112,863,788			86,235,242

	134,760,509			161,642,045			220,385,918			93,578,288



	47,004,802			18,051,995			357,537,121			13,213,970

$	181,765,311		$	179,694,040		$	577,923,039		$	106,792,258

$	94,148		$	33,372		$	—		$	(366,918	)



	819,502			1,076,571			14,040,664			427,150
	8,651,130			15,836,851			—			9,311,989
	171,678			7,307			788,917			71,006
	(762,948	)		(497,754	)		(5,300,708	)		(364,591	)

	8,879,362			16,422,975			9,528,873			9,445,554

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Statements of Changes in Net Assets

For the Year Ended December 31, 2002



	Growth and			CORE U.S.
	Income Fund			Equity Fund

From operations:

Net investment income	$	581,699		$	922,195
Net realized loss on investment, futures and foreign currency related transactions		(4,544,880	)		(28,667,737	)
Net change in unrealized gain (loss) on investments, futures and translation of assets and liabilities denominated in foreign currencies		(960,402	)		(11,617,873	)

Net decrease in net assets resulting from operations		(4,923,583	)		(39,363,415	)

Distributions to shareholders:

From net investment income		(594,255	)		(927,555	)
From net realized gain on investment, futures and foreign currency related transactions		—			—

Total distributions to shareholders		(594,255	)		(927,555	)

From share transactions:

Proceeds from sales of shares		14,862,099			37,886,405
Reinvestment of dividends and distributions		594,255			927,555
Cost of shares repurchased		(13,620,580	)		(18,988,344	)

Net increase (decrease) in net assets resulting from share transactions		1,835,774			19,825,616

TOTAL INCREASE (DECREASE)		(3,682,064	)		(20,465,354	)

Net assets:

Beginning of year		40,592,757			163,904,437

End of year	$	36,910,693		$	143,439,083

Accumulated undistributed (distributions in excess of) net investment income	$	—		$	—

Summary of share transactions:

Shares sold		1,719,473			3,923,158
Shares issued on reinvestment of dividends and distributions		72,647			108,233
Shares repurchased		(1,605,512	)		(2,117,889	)

NET INCREASE (DECREASE)		186,608			1,913,502

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST


CORE Small Cap			Capital			Mid Cap			International
Equity Fund			Growth Fund			Value Fund			Equity Fund



$	133,281		$	27,956		$	3,958,345		$	50,492
	(2,165,250	)		(1,725,376	)		(12,108,793	)		(2,424,229	)
	(6,662,976	)		(3,211,807	)		(15,466,767	)		(841,144	)

	(8,694,945	)		(4,909,227	)		(23,617,215	)		(3,214,881	)



	(141,224	)		(37,758	)		(3,899,154	)		(161,774	)
	—			—			(1,137,534	)		—

	(141,224	)		(37,758	)		(5,036,688	)		(161,774	)



	9,833,705			10,640,320			203,015,816			2,820,438
	141,224			37,758			5,036,688			161,774
	(8,498,535	)		(3,944,659	)		(65,381,986	)		(4,164,843	)

	1,476,394			6,733,419			142,670,518			(1,182,631	)

	(7,359,775	)		1,786,434			114,016,615			(4,559,286	)



	54,364,577			16,265,561			243,520,506			17,773,256

$	47,004,802		$	18,051,995		$	357,537,121		$	13,213,970

$	2,950		$	—		$	63,062		$	(4,085	)



	931,766			1,198,946			17,617,800			337,661
	15,351			4,791			475,159			22,817
	(849,107	)		(461,265	)		(5,954,752	)		(513,576	)

	98,010			742,472			12,138,207			(153,098	)

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Year



			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 year		income			gain (loss)			operations			income			income			capital			gain			distributions



Growth and Income Fund
For the year ended December 31, 2003	$	8.14	$	0.13	^(b)	$	1.85		$	1.98		$	(0.12	)	$	—		$	—		$	—		$	(0.12	)
For the year ended December 31, 2002		9.33		0.13	^(b)		(1.19	)		(1.06	)		(0.13	)		—			—			—			(0.13	)
For the year ended December 31, 2001		10.34		0.05	^(b)		(1.02	)		(0.97	)		(0.04	)		—			—			—			(0.04	)
For the year ended December 31, 2000		10.89		0.04	^(b)		(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	)

CORE U.S. Equity Fund
For the year ended December 31, 2003	$	8.49	$	0.07	^(b)	$	2.43		$	2.50		$	(0.07	)	$	—		$	—		$	—		$	(0.07	)
For the year ended December 31, 2002		10.94		0.06	^(b)		(2.45	)		(2.39	)		(0.06	)		—			—			—			(0.06	)
For the year ended December 31, 2001		12.48		0.05	^(b)		(1.54	)		(1.49	)		(0.05	)		—			—			—			(0.05	)
For the year ended December 31, 2000		13.98		0.11	^(b)		(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	)

CORE Small Cap Equity Fund
For the year ended December 31, 2003	$	9.19	$	0.04	^(b)	$	4.18		$	4.22		$	(0.03	)	$	—		$	—		$	(0.39	)	$	(0.42	)
For the year ended December 31, 2002		10.84		0.03	^(b)		(1.65	)		(1.62	)		(0.03	)		—			—			—			(0.03	)
For the year ended December 31, 2001		10.40		0.03	^(b)		0.44			0.47			(0.02	)		—			(0.01	)		—			(0.03	)
For the year ended December 31, 2000		10.60		0.06	^(b)		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	)

Capital Growth Fund
For the year ended December 31, 2003	$	7.77	$	0.03	^(b)	$	1.81		$	1.84		$	(0.02	)	$	—		$	—		$	—		$	(0.02	)
For the year ended December 31, 2002		10.28		0.01	^(b)		(2.50	)		(2.49	)		(0.02	)		—			—			—			(0.02	)
For the year ended December 31, 2001		12.09		0.02	^(b)		(1.78	)		(1.76	)		(0.02	)		—			—			(0.03	)		(0.05	)
For the year ended December 31, 2000		14.01		0.01	^(b)		(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	)

Mid Cap Value Fund
For the year ended December 31, 2003	$	10.61	$	0.12	^(b)	$	2.89		$	3.01		$	(0.11	)	$	—		$	—		$	(0.14	)	$	(0.25	)
For the year ended December 31, 2002		11.29		0.14	^(b)		(0.67	)		(0.53	)		(0.12	)		—			—			(0.03	)		(0.15	)
For the year ended December 31, 2001		10.67		0.14	^(b)		1.14			1.28			(0.11	)		—			—			(0.55	)		(0.66	)
For the year ended December 31, 2000		8.42		0.15	^(b)		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	)

International Equity Fund
For the year ended December 31, 2003	$	7.25	$	0.04	^(b)	$	2.53		$	2.57		$	(0.34	)	$	—		$	—		$	—		$	(0.34	)
For the year ended December 31, 2002		8.99		0.03	^(b)		(1.68	)		(1.65	)		(0.09	)		—			—			—			(0.09	)
For the year ended December 31, 2001		11.78		0.05	^(b)		(2.68	)		(2.63	)		(0.09	)		—			(0.04	)		(0.03	)		(0.16	)
For the year ended December 31, 2000		14.47		0.05	^(b)		(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	)


(a)		Assumes investment at the net asset value at the beginning of the year, reinvestment of all distributions and a complete redemption of the investment at the net asset value at the end of the year.

(b)		Calculated based on the average shares outstanding methodology.

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST



													Ratios assuming no
													expense reductions

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



$	10.00		24.36	%	$	230,316		1.02	%		1.44	%		1.20	%		1.26	%		51	%
	8.14		(11.34	)		36,911		1.05			1.51			1.27			1.29			98
	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

$	10.92		29.47	%	$	383,025		0.85	%		0.79	%		0.85	%		0.79	%		92	%
	8.49		(21.89	)		143,439		0.85			0.60			0.86			0.59			84
	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

$	12.99		46.00	%	$	181,765		1.03	%		0.40	%		1.25	%		0.18	%		141	%
	9.19		(14.97	)		47,005		1.04			0.25			1.29			0.00			128
	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

$	9.59		23.74	%	$	179,694		1.02	%		0.38	%		1.43	%		(0.03	)%		16	%
	7.77		(24.33	)		18,052		1.10			0.16			1.77			(0.51	)		24
	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

$	13.37		28.39	%	$	577,923		0.91	%		1.02	%		0.91	%		1.02	%		64	%
	10.61		(4.69	)		357,537		0.91			1.20			0.91			1.20			95
	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

$	9.48		35.49	%	$	106,792		1.37	%		0.49	%		2.60	%		(0.74	)%		49	%
	7.25		(18.34	)		13,214		1.46			0.32			2.96			(1.18	)		86
	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

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Notes to Financial Statements

December 31, 2003

1. ORGANIZATION

Goldman Sachs Variable Insurance Trust (the “Trust”) is a Delaware statutory 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.

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 the significant accounting policies consistently followed by the Funds. The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 the NASDAQ system are valued daily at their last sale or official closing price on the principal exchange or system 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.

Investments in securities traded on a foreign securities exchange are valued daily at fair value under valuation procedures approved by the Board of Trustees consistent with applicable regulatory guidance. Effective September 30, 2003, such securities are valued daily at fair value determined by an independent service (if available) under valuation procedures approved by the Board of Trustees. Prior to September 30, 2003, for investments in securities traded on a foreign securities exchange, the impact of events that occurred 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 were not reflected in the Fund’s next determined NAV, unless the Trust, in it’s discretion, determined to make an adjustment in light of the nature and significance of the event, consistent with applicable regulatory guidance.

Investing in foreign markets may involve special risks and considerations not typically associated with investing in the United States. These risks include revaluation of currencies, high rates of inflation, repatriation restrictions on income and capital, and adverse political and economic developments. Moreover, securities issued in these markets may be less liquid, subject to government ownership controls, delayed settlements, and their prices may be more volatile than those of comparable securities in the United States.

B. Security Transactions and Investment Income — Security 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 including reclaims, where applicable. Certain dividends from foreign securities may be recorded subsequent to the ex-dividend date as soon as the Fund is informed of such dividends. Interest income is recorded on the basis of interest accrued, premium amortized and discount accreted. 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 and capital gains to its shareholders. Accordingly, no federal tax provisions are required. Dividends and distributions to shareholders are recorded on ex-dividend date. 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 each Fund’s distributions may be shown in the accompanying financial statements

GOLDMAN SACHS VARIABLE INSURANCE TRUST

2. SIGNIFICANT ACCOUNTING POLICIES — continued

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.

D. Deferred Organization Expenses — Organization-related costs were amortized on a straight-line basis over a period of five years. At December 31, 2003, deferred organization costs have been fully amortized for all Funds.

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

F. Foreign Currency Translations — The books and records of the Funds 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; and (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) currency 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 Statements 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 represent examples of such transactions. As a result of entering into these 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 held as collateral on behalf of the Funds, 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 each Fund’s custodian or designated subcustodians under triparty repurchase agreements.

3. AGREEMENTS

Goldman Sachs Funds Management, L.P., a subsidiary of The Goldman Sachs Group, Inc., was renamed Goldman Sachs Asset Management, L.P. (“GSAM”) effective at the end of April 2003 and assumed Goldman, Sachs & Co.’s (“Goldman Sachs”) investment advisory responsibilities under its Investment Management Agreement (the “Agreement”) with the Trust on behalf of the Growth and Income, CORE U.S. Equity, CORE Small Cap Equity, Capital Growth and Mid Cap Value Funds. The fees payable under the Agreements, and the personnel who manage the Funds, did not change as a result of GSAM’s assumption of responsibilities. Pursuant to an Investment Management Agreement (collectively with the Agreement, the “Agreements”) Goldman Sachs Asset Management International (“GSAMI”), an affiliate of GSAM, serves as the investment adviser for the International Equity Fund. Under the Agreements, the respective adviser, subject to the general supervision of the Trust’s Board of Trustees, manages the Funds’ portfolios.

As compensation for the services rendered pursuant to the Agreements, the assumption of the expenses related thereto and administering the Funds’ business affairs, including providing facilities, the adviser is entitled to a fee (“Management Fee”) computed daily and payable monthly, equal to an annual percentage rate of each Funds average daily net assets.

Additionally, each adviser has voluntarily agreed to limit “Other Expenses” (excluding management fees, transfer agent fees and expenses, taxes, interest, brokerage, litigation and indemnification costs, shareholder meeting and other extraordinary expenses)

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Notes to Financial Statements (continued)

December 31, 2003

3. AGREEMENTS — continued

to the extent that such expenses exceed, on an annual basis, a percentage rate of the average daily net assets of each Fund. Effective December 22, 2003, each adviser has agreed to reduce the other expense limitation as set forth in the table below. The Adviser has agreed to maintain these expense limitation reductions through June 30, 2005.

For the year ended December 31, 2003, the Funds’ Management Fees and other expense limitations as an annual percentage rate of average daily net assets are as follows:


				Other Expense Limit			Other Expense Limit
	Management			Prior to			Effective
Fund	Fee			December 22, 2003			December 22, 2003


Growth and Income		0.75	%		0.25	%		0.11	%

CORE U.S. Equity		0.70			0.20			0.16

CORE Small Cap Equity		0.75			0.25			0.11

Capital Growth		0.75			0.25			0.11

Mid Cap Value		0.80			0.25			0.25

International Equity		1.00			0.35			0.16

Goldman Sachs also serves as the transfer agent of the Funds for a fee. Fees charged for such transfer agency services are calculated daily 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 year ended December 31, 2003, the investment adviser reimbursed certain other expenses and the Funds have entered into certain offset arrangements with the custodian resulting in a reduction of the Funds’ expenses as follows (amounts in thousands):


	Other Expense		Custody Fee
Fund	Reimbursement		Reduction		Total


Growth and Income	$	78		1	$	79

CORE U.S. Equity		—		1		1

CORE Small Cap Equity		124		1		125

Capital Growth		108		1		109

Mid Cap Value		—		3		3

International Equity		212		1		213

GOLDMAN SACHS VARIABLE INSURANCE TRUST

3. AGREEMENTS — continued

At December 31, 2003, the amounts owed to affiliates were as follows (in thousands):


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


Growth and Income	$	66	$	4		—	$	70

CORE U.S. Equity		151		9		—		160

CORE Small Cap Equity		66		4		15		85

Capital Growth		48		2		—		50

Mid Cap Value		378		19		—		397

International Equity		39		1		—		40

4. PORTFOLIO SECURITY TRANSACTIONS

Cost of purchases and proceeds of sales and maturities of long-term securities for the year ended December 31, 2003, were as follows:


			Sales and
Fund	Purchases		Maturities


Growth and Income	$	175,731,181	$	26,963,697

CORE U.S. Equity		336,227,433		161,001,502

CORE Small Cap Equity		199,304,900		87,814,008

Capital Growth		158,319,627		5,438,850

Mid Cap Value		364,167,537		270,429,250

International Equity		85,574,867		10,446,245

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 December 31, 2003, open futures contracts were as follows:

Number of

Contracts

Settlement

Market

Unrealized

Fund

Type

Long

Month

Value

Gain/(Loss)

CORE U.S. Equity

S & P 500 Index

March 2004

1,888,020

31,390

CORE Small Cap Equity

Russell 2000 Index

March 2004

835,800

(8,728

)

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Notes to Financial Statements (continued)

December 31, 2003

4. PORTFOLIO SECURITY TRANSACTIONS — continued

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 and any resulting unrealized gains or losses are recorded in the Fund’s financial statements. The Funds record realized gains or losses at the time a 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.

At December 31, 2003, the International Equity Fund had outstanding forward foreign currency exchange contracts, both to purchase and sell foreign currencies as follows:


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


Australian Dollar		01/09/2004	$	3,411,774	$	3,477,044	$	65,270	$	—
		01/22/2004		1,060,976		1,109,302		48,326		—
		01/30/2004		688,813		721,443		32,630		—
Canadian Dollar		01/22/2004		106,000		107,855		1,855		—
Danish Krone		01/09/2004		498,335		515,659		17,324		—
Euro Currency		01/09/2004		1,886,924		1,935,942		49,018		—
		01/22/2004		528,000		568,847		40,847		—
Hong Kong Dollar		01/09/2004		129,336		129,324		—		12
Japanese Yen		01/08/2004		3,865,459		3,899,703		34,244		—
		01/22/2004		1,812,912		1,823,949		11,037		—
Mexican Peso		03/17/2004		369,993		369,135		—		858
New Zealand Dollar		01/30/2004		221,615		227,796		6,181		—
Norwegian Krone		01/09/2004		497,013		500,288		3,275		—
		01/22/2004		211,000		227,851		16,851		—
		01/23/2004		62,319		65,203		2,884		—
Pound Sterling		01/09/2004		1,899,335		1,947,412		48,077		—
		01/14/2004		564,933		595,622		30,689		—
		01/22/2004		2,011,755		2,074,504		62,749		—
Singapore Dollar		01/16/2004		635,793		652,391		16,598		—
Swedish Krona		01/09/2004		1,566,647		1,596,587		29,940		—
		01/22/2004		2,007,999		2,079,606		71,607		—
		03/18/2004		405,201		412,917		7,716		—
Swiss Franc		01/22/2004		545,000		573,015		28,015		—


TOTAL OPEN FORWARD FOREIGN CURRENCY PURCHASE CONTRACTS			$	24,987,132	$	25,611,395	$	625,133	$	870

GOLDMAN SACHS VARIABLE INSURANCE TRUST

4. PORTFOLIO SECURITY TRANSACTIONS — continued


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


Australian Dollar		01/22/2004	$	319,000	$	339,382	$	—	$	20,382
Canadian Dollar		01/22/2004		853,000		879,088		—		26,088
Euro Currency		01/09/2004		921,858		946,293		—		24,435
		01/22/2004		1,278,160		1,328,631		—		50,471
Hong Kong Dollar		01/09/2004		200,405		200,358		47		—
		03/11/2004		42,581		42,573		8		—
Hungarian Forint		03/24/2004		530,424		546,895		—		16,471
Japanese Yen		01/22/2004		210,000		216,133		—		6,133
Mexican Peso		03/17/2004		877,443		879,658		—		2,215
Norwegian Krone		01/22/2004		208,892		221,996		—		13,104
Pound Sterling		01/14/2004		26,134		27,557		—		1,423
		01/22/2004		529,000		559,654		—		30,654
Singapore Dollar		01/16/2004		696,888		713,335		—		16,447
Swedish Krona		01/22/2004		427,000		458,897		—		31,897
Swiss Franc		01/09/2004		425,611		436,476		—		10,865
		01/22/2004		5,612,760		5,947,714		—		334,954


TOTAL OPEN FORWARD FOREIGN CURRENCY SALE CONTRACTS			$	13,159,156	$	13,744,640	$	55	$	585,539

The contractual amounts of forward foreign currency exchange contracts do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. At December 31, 2003, the International Equity Fund had segregated sufficient cash and/or securities to cover any commitments under these contracts.

For the year ended December 31, 2003, Goldman Sachs and affiliated broker/ dealers earned brokerage commissions from portfolio transactions, including futures, executed on behalf of the Funds in the following amounts:


	Brokerage
Fund	Commissions


Growth and Income	$	3,060

CORE U.S. Equity		3,050

CORE Small Cap Equity		87,506

Capital Growth		365

Mid Cap Value		14,721

International Equity		512

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Notes to Financial Statements (continued)

December 31, 2003

5. SECURITIES LENDING

Pursuant to exemptive relief granted by the Securities and Exchange Commission (“SEC”) and the terms and conditions contained therein, the Funds may lend their securities through their securities lending 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 Funds’ securities. The amounts earned by the Funds for the year ended December 31, 2003, are reported parenthetically on the Statements of Operations. The Funds invest the cash collateral received in connection with securities lending transactions in the Enhanced Portfolio of Boston Global Investment Trust, a Delaware statutory trust. The Enhanced Portfolio is exempt from registration under Section 3(c)(7) of the Act and is managed by GSAM, for which GSAM receives an investment advisory fee. 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.

The table below details the following items as of December 31, 2003.


					Earnings of BGA		Earnings Received		Amount Payable to
	Market Value		Cash Collateral		Relating to		From Lending to		Goldman Sachs Upon
	of Securities		Received for Loans		Securities Loaned		Goldman Sachs		Return of Securities
	on loan as of		Outstanding as of		for Year Ended		for Year Ended		Loaned as of
Fund	December 31, 2003		December 31, 2003		December 31, 2003		December 31, 2003		December 31, 2003


Growth and Income^(a)	$	—	$	—	$	10	$	20	$	—

CORE U.S. Equity		1,706,880		1,778,000		1,683		1,085		—

CORE Small Cap Equity		4,336,661		4,513,900		11,367		13,947		187,000

Capital Growth^(a)		—		—		44		—		—

Mid Cap Value^(a)		—		—		1,394		—		—

International Equity		42,500		44,800		1,427		138		—


(a)		While there was lending activity during the year ended December 31, 2003, there were no loans outstanding as of December 31, 2003.

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 that has not been utilized. During the year ended December 31, 2003, the Funds did not have any borrowings under this facility.

GOLDMAN SACHS VARIABLE INSURANCE TRUST

7. JOINT REPURCHASE AGREEMENT ACCOUNT

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

At December 31, 2003, the Growth and Income, CORE U.S. Equity, Capital Growth, and Mid Cap Value Funds had undivided interests in the following Joint Repurchase Agreement Account II which equaled $3,900,000, $3,600,000, $3,100,000 and $22,100,000, respectively, in principal amount. At December 31, 2003, the following repurchase agreements held in this joint account were fully collateralized by Federal Agency obligations.


	Principal		Interest			Maturity	Maturity
Repurchase Agreements	Amount		Rate			Date	Value


ABN AMRO, Inc.	$	150,000,000		0.98	%	01/02/2004	$	150,008,167

Banc of America Securities LLC		500,000,000		1.01		01/02/2004		500,028,056

Barclays Capital PLC		200,000,000		1.00		01/02/2004		200,011,111

Deutsche Bank Securities, Inc.		500,000,000		0.98		01/02/2004		500,027,222

Greenwich Capital Markets		400,000,000		1.01		01/02/2004		400,022,444

J.P. Morgan Chase & Co.		400,000,000		1.01		01/02/2004		400,022,444

Morgan Stanley		100,000,000		0.90		01/02/2004		100,005,000

Morgan Stanley		220,000,000		0.99		01/02/2004		220,012,100

UBS LLC		248,400,000		0.97		01/02/2004		248,413,386

UBS LLC		380,000,000		0.98		01/02/2004		380,020,689

UBS LLC		500,000,000		1.00		01/02/2004		500,027,778

Westdeutsche Landesbank AG		300,000,000		1.02		01/02/2004		300,017,000

TOTAL JOINT REPURCHASE AGREEMENT ACCOUNT II	$	3,898,400,000					$	3,898,615,397

8. ADDITIONAL TAX INFORMATION

The tax character of distributions paid during the fiscal year ended December 31, 2002 was as follows:


		Growth and		CORE U.S.		CORE Small Cap		Capital		Mid Cap		International
		Income Fund		Equity Fund		Equity Fund		Growth Fund		Value Fund		Equity Fund






Distributions paid from:
Ordinary Income		$	594,255	$	927,555	$	141,224	$	37,758	$	4,357,670	$	161,774
Net long-term capital gains			—		—		—		—		679,018		—

	Total taxable distributions	$	594,255	$	927,555	$	141,224	$	37,758	$	5,036,688	$	161,774

The tax character of distributions paid during the fiscal year ended December 31, 2003 was as follows:


		Growth and		CORE U.S.		CORE Small Cap		Capital		Mid Cap		International
		Income Fund		Equity Fund		Equity Fund		Growth Fund		Value Fund		Equity Fund






Distributions paid from:
Ordinary Income		$	561,152	$	1,302,647	$	852,662	$	67,672	$	5,595,351	$	641,177
Net long-term capital gains			—		—		1,305,329		—		4,676,351		—

	Total taxable distributions	$	561,152	$	1,302,647	$	2,157,991	$	67,672	$	10,271,702	$	641,177

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Notes to Financial Statements (continued)

December 31, 2003

8. ADDITIONAL TAX INFORMATION — continued

As of December 31, 2003, the components of accumulated earnings (losses) on a tax basis were as follows:


	Growth and			CORE U.S.			CORE Small Cap		Capital			Mid Cap		International
	Income Fund			Equity Fund			Equity Fund		Growth Fund			Value Fund		Equity Fund


Undistributed ordinary income — net	$	64,956		$	25,303		$	921,408	$	33,372		$	—	$	77,399
Undistributed long-term capital gains		—			—			66,073		—			—		—

Total undistributed earnings	$	64,956		$	25,303		$	987,481	$	33,372		$	—	$	77,399
Capital loss carryforward*		(58,199,898	)		(94,601,141	)		—		(30,989,036	)		—		(58,839,959	)
Unrealized gains (losses) — net		39,538,890			45,304,241			12,924,959		1,598,905			98,150,040		11,684,772

Total accumulated earnings (losses) — net	$	(18,596,052	)	$	(49,271,597	)	$	13,912,440	$	(29,356,759	)	$	98,150,040	$	(47,077,788	)

Capital loss carryforward years of expiration		2006-2011			2008-2011			n/a		2008-2011			n/a		2008-2011

* Utilization of these losses may be limited under the Internal Revenue Code.

At December 31, 2003, the Fund’s aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes were as follows:


	Growth and			CORE U.S.			CORE Small Cap			Capital			Mid Cap			International
	Income Fund			Equity Fund			Equity Fund			Growth Fund			Value Fund			Equity Fund


Tax Cost	$	190,237,652		$	340,999,845		$	172,367,363		$	178,040,574		$	475,301,005		$	93,915,971

Gross unrealized gain		40,233,659			51,138,303			13,684,449			19,083,262			99,056,811			13,991,959
Gross unrealized loss		(694,769	)		(5,834,062	)		(759,490	)		(17,484,357	)		(906,771	)		(2,343,416	)

Net unrealized security gain (loss)	$	39,538,890		$	45,304,241		$	12,924,959		$	1,598,905		$	98,150,040		$	11,648,543

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

9. CERTAIN RECLASSIFICATIONS

In order to present the capital accounts on a tax basis, certain reclassifications have been recorded to the Funds’ accounts. These reclassifications have no impact on the net asset value of the Funds and are designed to present the Funds’ capital accounts on a tax basis. Reclassifications result primarily from the difference in the tax treatment of foreign currency transactions, tax overdistributions and organization costs.

In addition, reclassifications were also made to adjust the accumulated accounts to reflect the balances assumed by the Funds in the reorganizations described in footnote 10.


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


Growth and Income	$	49,314,305		$	(49,346,861	)	$	32,556

CORE U.S. Equity		45,379,770			(45,379,813	)		43

CORE Small Cap Equity		(998	)		—			998

Capital Growth		27,510,635			(27,510,767	)		132

Mid Cap Value		(1,165,816	)		1,201,331			(35,515	)

International Equity		51,822,457			(52,016,263	)		193,806

GOLDMAN SACHS VARIABLE INSURANCE TRUST

10. MERGERS AND REORGANIZATIONS

At a meeting held on September 18, 2003, the Board of Trustees of the Trust approved (i) an Agreement and Plan of Reorganization (the “Protective Agreement”) providing for the tax-free acquisition of the Growth and Income, CORE U.S. Equity, Small Cap Value, Capital Growth and International Equity Funds of Protective Investment Company by the Growth and Income, CORE U.S. Equity, CORE Small Cap Equity, Capital Growth and International Equity Funds of the Trust, respectively, and (ii) an Agreement and Plan of Reorganization (the “Ayco Agreement”) providing for the tax-free acquisition of the Growth Fund of the Ayco Series Trust by the Capital Growth Fund of the Trust. The acquisitions were completed on December 19, 2003 following the approval of the Ayco Fund shareholders on November 25, 2003 and the Protective Fund shareholders on December 9, 2003.

Pursuant to the Protective Agreement and Ayco Agreement, the assets and liabilities of the Protective Growth & Income, Protective CORE U.S. Equity, Protective Small Cap Value, Protective Capital Growth, Protective International Equity and Ayco Growth Funds were transferred to the Growth and Income, CORE U.S. Equity, CORE Small Cap Equity, Capital Growth and International Equity Funds of the Trust in a tax-free exchange for Shares of such Funds of the Trust as follows:


	Exchanged Shares				Acquired Fund’s
	of Survivor		Value of		Shares Outstanding
Survivor/ Acquired Fund	Issued		Exchanged Shares		as of December 19, 2003


Growth and Income/ Protective Growth and Income		18,241,732	$	178,951,522		14,281,379

CORE U.S. Equity/ Protective CORE U.S. Equity		16,120,873		172,009,752		10,870,914

CORE Small Cap Equity/ Protective Small Cap Value		8,651,130		110,388,436		10,265,148

Capital Growth/ Protective Capital Growth		14,334,186		134,454,724		8,558,442

Capital Growth/Ayco Growth		1,502,665		14,095,057		1,671,489

International Equity/ Protective International Equity		9,311,989		85,111,633		9,431,932

The following chart shows the Survivor Fund’s and Acquired Fund’s aggregate net assets (immediately before and after the completion of the acquisition) and the Acquired Funds’ unrealized appreciation (depreciation) and capital loss carryforwards.


											Survivor Fund’s
	Survivor Fund’s		Acquired Fund’s		Acquired						Aggregate
	Aggregate		Aggregate		Fund’s			Acquired			Net Assets
	Net Assets		Net Assets		Unrealized			Fund’s			immediately
	before		before		Appreciation/			Capital Loss			after
Survivor/ Acquired Fund	acquisition		acquisition		(Depreciation)			Carryforward			acquisition


Growth and Income/ Protective Growth and Income	$	46,773,384	$	178,951,522	$	29,603,787		$	(49,065,396	)	$	225,724,906

CORE U.S. Equity/ Protective CORE U.S. Equity		200,597,059		172,009,752		16,701,292			(44,057,909	)		372,606,811

CORE Small Cap Equity/ Protective Small Cap Value		68,670,034		110,388,436		—			—			179,058,470

Capital Growth/ Protective Capital Growth		26,929,808		134,454,724		(2,149,375	)		(24,790,418	)		175,479,589

Capital Growth/Ayco Growth		26,929,808		14,095,057		19,135			(2,696,909	)		175,479,589

International Equity/ Protective International Equity		18,015,399		85,111,633		8,640,456			(50,026,977	)		103,127,032

GOLDMAN SACHS VARIABLE INSURANCE TRUST

Report of Ernst & Young LLP, Independent Auditors

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

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Goldman Sachs Variable Insurance Trust (comprising, respectively, Goldman Sachs Growth and Income Fund, Goldman Sachs CORE U.S. Equity Fund, Goldman Sachs CORE Small Cap Equity Fund, Goldman Sachs Capital Growth Fund, Goldman Sachs Mid Cap Value Fund and Goldman Sachs International Equity Fund) (the “Trust”) as of December 31, 2003, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the four years in the period then ended. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the period ended December 31, 1999 were audited by other auditors whose report, dated February 10, 2000, expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2003 by correspondence with the custodian and others. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights, audited by us, referred to above present fairly, in all material respects, the financial position of each of the respective funds constituting Goldman Sachs Variable Insurance Trust at December 31, 2003, the results of their operations, the changes in their net assets, and the financial highlights for the periods indicated above, in conformity with accounting principles generally accepted in the United States.

-s- ERNST & YOUNG LLP

New York, New York

February 10, 2004

Trustees and Officers (Unaudited)

Independent Trustees

Number of

Term of

Portfolios in

Office and

Fund

Length of

Complex

Position(s) Held

Time

Principal Occupation(s)

Overseen by

Name, Address and Age¹

with the Trust²

Served³

During Past 5 Years

Trustee⁴

Other Directorships Held by Trustee⁵

Ashok N. Bakhru
Age: 61

Chairman &
Trustee

Since 1991

President, ABN Associates (July 1994- March 1996 and November 1998-Present); Executive Vice President – Finance and Administration and Chief Financial Officer, Coty Inc. (manufacturer of fragrances and cosmetics) (April 1996- November 1998); Director of Arkwright Mutual Insurance Company (1984-1999); Trustee of International House of Philadelphia (program center and residential community for students and professional trainees from the United States and foreign countries) (1989-Present); Member of Cornell University Council (1992-Present); Trustee of the Walnut Street Theater (1992- Present); Trustee, Citizens Scholarship Foundation of America (1998-Present); Director, Private Equity Investors – III and IV (November 1998- Present), and Equity- Limited Investors II (April 2002-Present); and Chairman, Lenders Service Inc. (provider of mortgage lending services) (2000-Present).

None

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

John P. Coblentz, Jr.
Age: 62

Trustee

Since 2003

Partner, Deloitte & Touche LLP (June 1975- May 2003).

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

None

Patrick T. Harker
Age: 45

Trustee

Since 2000

Dean and Reliance Professor of Operations and Information Management, The Wharton School, University of Pennsylvania (February 2000-Present); Interim and Deputy Dean, The Wharton School, University of Pennsylvania (July 1999- Present); and Professor and Chairman of Department of Operations and Information Management, The Wharton School, University of Pennsylvania (July 1997- August 2000).

None

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

Number of

Term of

Portfolios in

Office and

Fund

Length of

Complex

Position(s) Held

Time

Principal Occupation(s)

Overseen by

Name, Address and Age¹

with the Trust²

Served³

During Past 5 Years

Trustee⁴

Other Directorships Held by Trustee⁵

Mary P. McPherson
Age: 68

Trustee

Since 1997

Vice President, The Andrew W. Mellon Foundation (provider of grants for conservation, environmental and educational purposes) (October 1997-Present); Director, Smith College (1998-Present); Director, Josiah Macy, Jr. Foundation (health educational programs) (1977-Present); Director, Philadelphia Contributionship (insurance) (1985- Present); Director Emeritus, Amherst College (1986-1998); Director, The Spencer Foundation (educational research) (1993-February 2003); Member of PNC Advisory Board (banking) (1993-1998); and Director, American School of Classical Studies in Athens (1997- Present).

None

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

Wilma J. Smelcer
Age: 54

Trustee

Since 2001

Chairman, Bank of America, Illinois (banking) (1998-January 2001); and Governor, Board of Governors, Chicago Stock Exchange (national securities exchange) (April 2001- Present).

None

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

Richard P. Strubel
Age: 64

Trustee

Since 1987

President, COO and Director Unext, Inc. (provider of educational services via the internet) (1999-Present); Director, Cantilever Technologies, Inc. (a private software company) (1999- Present); Trustee, The University of Chicago (1987-Present); and Managing Director, Tandem Partners, Inc. (management services firm) (1990-1999).

Gildan Activewear Inc. (an activewear clothing marketing and manufacturing company); Unext, Inc. (provider of educational services via the internet); Northern Mutual Fund Complex (53 Portfolios).

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

Interested Trustees

*Gary D. Black
Age: 43

Trustee

Since 2002

Managing Director, Goldman Sachs (June 2001-Present); Executive Vice President, AllianceBernstein (investment adviser) (October 2000-June 2001); Managing Director, Global Institutional Investment Management, Sanford Bernstein (investment adviser) (January 1999- October 2000); and Senior Research Analyst Sanford Bernstein (investment adviser) (February 1992-December 1998).

None

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

Number of

Term of

Portfolios in

Office and

Fund

Length of

Complex

Position(s) Held

Time

Principal Occupation(s)

Overseen by

Name, Address and Age¹

with the Trust²

Served³

During Past 5 Years

Trustee⁴

Other Directorships Held by Trustee⁵

*James A. McNamara
Age: 41

Trustee
&
Vice
President

Since 2002

Managing Director, Goldman Sachs (December 1998- Present); Director of Institutional Fund Sales, GSAM (April 1998- December 2000); and Senior Vice President and Manager, Dreyfus Institutional Service Corporation (January 1993-April 1998).

None

Since 2001

Vice President – Goldman Sachs Mutual Fund Complex (registered investment companies).

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

*Alan A. Shuch
Age: 54

Trustee

Since 1990

Advisory Director – GSAM (May 1999- Present); Consultant to GSAM (December 1994-May 1999); and Limited Partner, Goldman Sachs (December 1994-May 1999).

None

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

*Kaysie P. Uniacke
Age: 43

Trustee
&
President

Since 2001

Managing Director, GSAM (1997-Present).

None

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

Since 2002

President – Goldman Sachs Mutual Fund Complex (2002-Present) (registered investment companies).

Assistant Secretary – Goldman Sachs Mutual Fund Complex (1997- 2002) (registered investment companies).

*   These persons are considered to be “Interested Trustees” because they hold positions with Goldman Sachs and own securities issued by The Goldman Sachs Group, Inc. Each Interested Trustee holds comparable positions with certain other companies of which Goldman Sachs, GSAM or an affiliate thereof is the investment adviser, administrator and/or distributor.

¹   Each Trustee may be contacted by writing to the Trustee, c/o Goldman Sachs, One New York Plaza, 37^th Floor, New York, New York, 10004, Attn: Howard B. Surloff.

²   The Trust is a successor to a Massachusetts business trust that was combined with the Trust on April 30, 1997.

³   Each Trustee holds office for an indefinite term until the earliest of: (a) the election of his or her successor; (b) the date the Trustee resigns or is removed by the Board of Trustees or shareholders, in accordance with the Trust’s Declaration of Trust; (c) the date the Trustee attains the age of 72 years (in accordance with the current resolutions of the Board of Trustees, which may be changed by the Trustees without shareholder vote); or (d) the termination of the Trust.

⁴   The Goldman Sachs Mutual Fund Complex consists of the Trust and Goldman Sachs Variable Insurance Trust. As of December 31, 2003, the Trust consisted of 58 portfolios, including the Funds described in this Annual Report, and Goldman Sachs Variable Insurance Trust consisted of 6 portfolios.

⁵   This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934 (i.e., “public companies”) or other investment companies registered under the Act. Additional information about the Trustees is available in the Funds’ Statement of Additional Information which can be obtained from Goldman Sachs free of charge by calling this toll-free number (in the United States): 1-800-292-4726.

Officers of the Trust*


			Term of
			Office and
	Position(s) Held		Length of		Principal Occupation(s)
Name, Age And Address	With the Trust		Time Served¹		During Past 5 Years

Kaysie P. Uniacke 32 Old Slip New York, NY 10005 Age: 43		President & Trustee	Since 2002 Since 2001		Managing Director, GSAM (1997-Present). Trustee – Goldman Sachs Mutual Fund Complex (registered investment companies). President – Goldman Sachs Mutual Fund Complex (registered investment companies). Assistant Secretary – Goldman Sachs Mutual Fund Complex (1997-2002) (registered investment companies).

John M. Perlowski 32 Old Slip New York, NY 10005 Age: 39		Treasurer		Since 1997	Managing Director, Goldman Sachs (December 2003-Present) Vice President, Goldman Sachs (July 1995-December 2003). Treasurer – Goldman Sachs Mutual Fund Complex (registered investment companies).

James A. Fitzpatrick 4900 Sears Tower Chicago, IL 60606 Age: 43		Vice President		Since 1997	Managing Director, Goldman Sachs (October 1999-Present); and Vice President of GSAM (April 1997-December 1999).

					Vice President – Goldman Sachs Mutual Fund Complex (registered investment companies).

James A. McNamara 32 Old Slip New York, NY 10005 Age: 41	Vice President & Trustee			Since 2001	Managing Director, Goldman Sachs (December 1998-Present); and Director of Institutional Fund Sales, GSAM (April 1998- December 2000).

				Since 2002	Vice President – Goldman Sachs Mutual Fund Complex (registered investment companies).

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

Howard B. Surloff One New York Plaza 37^thFloor New York, NY 10004 Age: 38		Secretary		Since 2001	Managing Director, Goldman Sachs (November 2002-Present); Associate General Counsel, Goldman Sachs and General Counsel to the U.S. Funds Group (December 1997-Present). Secretary – Goldman Sachs Mutual Fund Complex (registered investment companies) (2001-Present) and Assistant Secretary prior thereto.

¹ Officers hold office at the pleasure of the Board of Trustees or until their successors are duly elected and qualified. Each officer holds comparable positions with certain other companies of which Goldman Sachs, GSAM or an affiliate thereof is the investment adviser, administrator and/or distributor.

* Represents a partial list of officers of the Trust. Additional information about all the officers is available in the Funds’ Statement of Additional Information which can be obtained from Goldman Sachs free of charge by calling this toll-free number (in the United States): 1-800-292-4726.

Goldman Sachs Variable Insurance Trust – Tax Information (Unaudited)

For the year ended December 31, 2003, 100% of the dividends paid from net investment company taxable income by the Growth and Income, CORE U.S. Equity, CORE Small Cap Equity, Capital Growth and Mid Cap Value Funds, respectively, qualify for the dividends received deduction available to corporations.

Pursuant to Section 852 of the Internal Revenue Code, the Mid Cap Value and CORE Small Cap Equity Funds designate $4,676,351 and $1,305,329, respectively, as capital gain dividends paid during the year ended December 31, 2003.

For the 2003 tax year, the International Equity Fund has elected to pass through a credit for taxes paid to foreign jurisdictions. During the year ended December 31, 2003, the Fund paid distributions of $0.3366 per share, all of which was attributable to qualified passive income. The total amount of foreign taxes paid by the Fund was $0.0202 per share. The country-by-country components of these totals, reflected as a percentage of total distributions and foreign taxes paid, are provided below.


	Foreign
	Source of			Foreign Tax
Country	Income %			Paid %


Australia		0.21	%		0.00	%
Finland		0.10			0.00
France		3.41			7.43
Germany		0.34			1.98
Hong Kong		1.03			0.00
Ireland		1.84			0.00
Italy		0.29			0.50
Japan		1.65			5.94
Mexico		0.07			0.00
Netherlands		1.72			1.98
Russia		4.00			14.36
Singapore		0.79			4.46
South Korea		0.41			2.48
Spain		0.43			1.49
Sweden		0.09			0.00
Switzerland		4.99			8.91
United Kingdom		14.19			50.47
United States		64.44			0.00

TOTAL		100.00%			100.00%


TRUSTEES		OFFICERS
Ashok N. Bakhru, Chairman		Kaysie P. Uniacke, President
Gary D. Black		James A. Fitzpatrick, Vice President
John P. Coblentz, Jr.		James A. McNamara, Vice President
Patrick T. Harker		John M. Perlowski, Treasurer
James A. McNamara		Howard B. Surloff, Secretary
Mary Patterson McPherson
Alan A. Shuch
Wilma J. Smelcer
Richard P. Strubel
Kaysie P. Uniacke
GOLDMAN, SACHS & CO. Distributor and Transfer Agent
GOLDMAN SACHS ASSET MANAGEMENT, L.P. Investment Adviser
GOLDMAN SACHS ASSET MANAGEMENT INTERNATIONAL 133 Peterborough Court London, England EC4A 2BB
Visit our internet address: www.gs.com/funds
The reports concerning the Funds included in this shareholder report may contain certain forward-looking statements about the factors that may affect the performance of the Funds in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Funds, such as performance of the economy as a whole and of specific industry sectors, changes in the levels of interest rates, the impact of developing world events, and other factors that may influence the future performance of the Funds. Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in portfolio management strategies from those currently expected to be employed.
This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus for the Funds. Investors should read the Prospectus carefully before investing or sending money.
Holdings are as of December 31, 2003 and are subject to change in the future. Fund holdings of stocks or bonds should not be relied on in making investment decisions and should not be construed as research or investment advice regarding particular securities.
The U.S. Equity Funds are subject to the risk of rising and falling stock prices. In recent years, the U.S. stock market has experienced substantial price volatility.
Emerging markets securities are volatile. They are subject to substantial currency fluctuations and sudden economic and political developments. At times, the Goldman Sachs International Equity Fund may be unable to sell certain of its portfolio securities without a substantial drop in price, if at all.
Concentration of the Fund’s assets in one or a few countries (or a particular geographic area) and currencies will subject a fund to greater risks than if a fund’s assets were not geographically concentrated.
Stocks of smaller companies are often more volatile and present greater risks than stocks of larger companies. At times, the Goldman Sachs CORE Small Cap Equity Fund may be unable to sell certain of its portfolio securities without a substantial drop in price, if at all.
CORE^smis a service mark of Goldman, Sachs & Co.
Goldman, Sachs & Co. is the distributor of the Fund.
		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.

© Copyright 2004 Goldman, Sachs & Co. All rights reserved. Date of first use: February 17, 2004

VITAR


ITEM 2.		CODE OF ETHICS.


		(a)		As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party (the “Code of Ethics”). The Code of Ethics is attached hereto as Exhibit 10(a)(1).

		(b)		During the period covered by this report, no amendments were made to the provisions of the Code of Ethics.

		(c)		During the period covered by this report, the registrant did not grant any waivers, including an implicit waiver, from any provision of the Code of Ethics.


ITEM 3.		AUDIT COMMITTEE FINANCIAL EXPERT.

		The registrant’s board of trustees has determined that the registrant has at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR) serving on its audit committee. John P. Coblentz, Jr. is the “audit committee financial expert” and is “independent” (as each term is defined in Item 3 of Form N-CSR).


ITEM 4.		PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Item 4 — Principal Accountant Fees and Services for the Goldman Sachs Variable Insurance Trust:
Table 1 – Items 4(a) -4(d)


	2003		2002		Description of Services Rendered
Audit Fees:

• Ernst & Young LLP (“E&Y”)	$	103,000	$	75,000	Financial statement audits

Audit-Related Fees

• E&Y	$	42,000	$	0	Accounting consultations and reviews of registration statements in connection with fund mergers

Tax Fees

• E&Y	$	28,400	$	27,400	Tax compliance services provided in connection with the preparation and review of the Registrant’s tax returns
All Other Fees	$	0	$	0

Items 4(b)(c) & (d) Table 2. Non-Audit Services to the Goldman Sachs Variable Insurance Trust’s service affiliates * that were pre-approved by the Goldman Sachs Variable Insurance Trust’s Audit Committee pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X


	2003		2002	Description of Services Rendered
Audit-Related Fees

• E&Y	$	0	N/A

Tax Fees

• E&Y	$	0	N/A

All Other Fees

• E&Y	$	6,000	N/A	Represents access to an on-line accounting reference tool for certain employees of the Trust’s distributor.

These include the advisor (excluding sub-advisors) and any entity controlling, controlled by or under common control with the advisor that provides ongoing services to the registrant (hereinafter referred to as “service affiliates”).

Item 4(e)(1) – Audit Committee Pre Approval Policies and Procedures

Pre-Approval of Audit and Non-Audit Services Provided to the Funds of the Goldman Sachs Variable Insurance Trust. The Audit and Non-Audit Services Pre-Approval Policy (the “Policy”) adopted by the Audit Committee of Goldman Sachs Variable Insurance Trust (“GSVIT”) sets forth the procedures and the conditions pursuant to which services performed by an independent auditor for GSVIT may be pre-approved. Services may be pre-approved specifically by the Audit Committee as a whole or, in certain circumstances, by the Audit Committee Chairman or the person designated as the Audit Committee Financial Expert. In addition, subject to specified cost limitations, certain services may be pre-approved under the provisions of the Policy. The Policy provides that the Audit Committee will consider whether the services provided by an independent auditor are consistent with the Securities and Exchange Commission’s rules on auditor independence. The Policy provides for periodic review and pre-approval by the Audit Committee of the services that may be provided by the independent auditor.

De Minimis Waiver. The pre-approval requirements of the Policy may be waived with respect to the provision of non-audit services that are permissible for an independent auditor to perform, provided (1) the aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues subject to pre-approval that was paid to the independent auditors during the fiscal year in which the services are provided; (2) such services were not recognized by GSVIT at the time of the engagement to be non-audit services; and (3) such services are promptly brought to the attention of the Audit Committee and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee to whom authority to grant such approvals has been delegated by the Audit Committee, pursuant to the pre-approval provisions of the Policy.

Pre-Approval of Non-Audit Services Provided to GSVIT’s Investment Advisers. The Policy provides that, in addition to requiring pre-approval of audit and non-audit services provided to GSVIT, the Audit Committee will pre-approve those non-audit services provided to GSVIT’s investment advisers (and entities controlling, controlled by or under common control with the investment advisers that provide ongoing services to GSVIT) where the engagement relates directly to the operations or financial reporting of GSVIT.

Item 4(e)(2) — 0% of the audit-related fees, tax fees and other fees listed in Table 1 were approved by the Trust’s audit committee pursuant to the “de minimis” exception of Rule 2-01(c)(7)(i)(C) of Regulation S-X. In addition, 0% of the non-audit services to the Goldman Sachs Trust’s service affiliates listed in Table 2 were approved by the Trust’s audit committee pursuant to the “de minimis” exception of Rule 2-01(c)(7)(i)(C) of Regulation S-X.

Item 4(f) — Not applicable.

Items 4(g) Aggregate Non-Audit Fees Disclosure

The aggregate non-audit fees billed to the GSVIT for the 12 months ended December 31, 2003 and December 31, 2002 were approximately $70,400 and $27,400, respectively.

The aggregate non-audit fees billed to the GSVIT’s adviser and service affiliates by Ernst & Young LLP for non-audit services for the twelve months ended December 31, 2003 and December 31, 2002 were approximately $30.9 million and $15.4 million, respectively. The 2003 amount includes fees for non-audit services required to be pre-approved [see Table 2] and fees for non-audit services that did not require pre-approval since they did not directly relate to the GSVIT’s operations or financial reporting.

Items 4(h) — The GSVIT’s audit committee has considered whether the provision of non-audit services to the GSVIT’s investment advisor and service affiliates that did not require pre-approval pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the auditor’s independence.


ITEM 5.		AUDIT COMMITTEE OF LISTED REGISTRANTS.

		Not applicable.


ITEM 6.		[RESERVED]


ITEM 7.		DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

		Not applicable.


ITEM 8.		PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

ITEM 9.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable to annual reports for the year ended December 31, 2003


ITEM 10.		CONTROLS AND PROCEDURES.


		(a)		The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934, as amended.

		(b)		There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal half-year (the registrant’s second fiscal half year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting.


ITEM 11.		EXHIBITS.

(a)(1) Goldman Sachs Variable Insurance Trust’s Code of Ethics for Principal Executive and Senior Financial Officers filed herewith.

(a)(2) Exhibit 99.CERT Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.

(b) Exhibit 99.906CERT Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	Goldman Sachs Variable Insurance Trust

By:		/s/ Kaysie P. Uniacke

		Kaysie P. Uniacke
		President/Principal Executive Officer
		Goldman Sachs Variable Insurance Trust

Date:		March 5, 2004

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By:				/s/ Kaysie P. Uniacke

				Kaysie P. Uniacke
				President/Principal Executive Officer
				Goldman Sachs Variable Insurance Trust

Date:				March 5, 2004

By:				/s/ John M. Perlowski

				John M. Perlowski
				Treasurer/Principal Financial Officer
				Goldman Sachs Variable Insurance Trust

Date:				March 5, 2004


*	These persons are considered to be “Interested Trustees” because they hold positions with Goldman Sachs and own securities issued by The Goldman Sachs Group, Inc. Each Interested Trustee holds comparable positions with certain other companies of which Goldman Sachs, GSAM or an affiliate thereof is the investment adviser, administrator and/or distributor.

¹	Each Trustee may be contacted by writing to the Trustee, c/o Goldman Sachs, One New York Plaza, 37^th Floor, New York, New York, 10004, Attn: Howard B. Surloff.

²	The Trust is a successor to a Massachusetts business trust that was combined with the Trust on April 30, 1997.

³	Each Trustee holds office for an indefinite term until the earliest of: (a) the election of his or her successor; (b) the date the Trustee resigns or is removed by the Board of Trustees or shareholders, in accordance with the Trust’s Declaration of Trust; (c) the date the Trustee attains the age of 72 years (in accordance with the current resolutions of the Board of Trustees, which may be changed by the Trustees without shareholder vote); or (d) the termination of the Trust.

⁴	The Goldman Sachs Mutual Fund Complex consists of the Trust and Goldman Sachs Variable Insurance Trust. As of December 31, 2003, the Trust consisted of 58 portfolios, including the Funds described in this Annual Report, and Goldman Sachs Variable Insurance Trust consisted of 6 portfolios.

⁵	This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934 (i.e., “public companies”) or other investment companies registered under the Act. Additional information about the Trustees is available in the Funds’ Statement of Additional Information which can be obtained from Goldman Sachs free of charge by calling this toll-free number (in the United States): 1-800-292-4726.


¹	Officers hold office at the pleasure of the Board of Trustees or until their successors are duly elected and qualified. Each officer holds comparable positions with certain other companies of which Goldman Sachs, GSAM or an affiliate thereof is the investment adviser, administrator and/or distributor.


*	Represents a partial list of officers of the Trust. Additional information about all the officers is available in the Funds’ Statement of Additional Information which can be obtained from Goldman Sachs free of charge by calling this toll-free number (in the United States): 1-800-292-4726.

	(a)(1)		Goldman Sachs Variable Insurance Trust’s Code of Ethics for Principal Executive and Senior Financial Officers filed herewith.

(a)(2)	Exhibit 99.CERT	Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.

(b)	Exhibit 99.906CERT	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith