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, 2004

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

Growth and Income Fund

Annual Report

December 31, 2004

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, 2004.

Market Review

For the first time since 1999, the broad U.S. equity markets posted positive returns in consecutive years. With the overhang of the U.S. Presidential election finally removed, much of the market’s gains for 2004 came in the fourth quarter of the year. Throughout the reporting period, industry headlines centered on oil prices and high profile investigations conducted by New York Attorney General Eliot Spitzer and other law enforcement and regulatory agencies. On the economic front, improving trends further bolstered investor sentiment, as job growth appeared to gain traction, while inflation remained at a moderate rate.

Investment Objective

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

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2004*

		% of
Company	Business	Net Assets
ChevronTexaco Corp.	Energy Resources		4.8	%
Citigroup, Inc.	Large Banks		4.6
Bank of America Corp.	Large Banks		4.0
Altria Group, Inc.	Tobacco		3.1
J.P. Morgan Chase & Co.	Large Banks		3.1
Exxon Mobil Corp.	Energy Resources		3.0
iStar Financial, Inc.	REITS		2.7
General Electric Co.	Parts & Equipment		2.5
Sprint Corp.	Telephone		2.2
Burlington Resources, Inc.	Energy Resources		2.2

* 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.

1

 GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Shareholder Letter (continued)

Performance Review

Over the one-year period that ended December 31, 2004, the Fund generated a cumulative total return of 18.80%. Over the same time period, the Fund’s benchmark, the Standard & Poor’s 500 Index (with dividends reinvested) generated a cumulative total return of 10.88%. The Fund’s holdings in the Healthcare, Technology, and Energy sectors enhanced results, while its Transportation, Consumer Cyclicals, and Basic Materials holdings detracted from performance.

Activision, Inc. emerged as a top contributor to performance during the fiscal year. The video game maker/marketer increased its earnings outlook for 2005 and reported better-than-expected holiday sales. In the Energy sector, Burlington Resources, Inc., a holding company engaged in the exploration, development, production, and marketing of crude oil and natural gas, boosted Fund returns. While the stock was a strong performer during the fiscal year, we believe it remains attractively valued.

Conversely, Nortel Networks Corp., a global supplier of products and services that support the Internet and other public and private data, voice, and multimedia communications networks, detracted from results. Its shares declined during the period as the company lowered its outlook for operating margins and revenue growth. This short-term negative news, combined with its pending earnings restatement, overshadowed the company’s cost-reduction program and its lead position in the voice-over-Internet protocol equipment market (which allows voice telephony services using one’s computer).

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

Goldman Sachs Value Portfolio Management Team

January 19, 2005

2

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND 

SECTOR ALLOCATION AS OF DECEMBER 31, 2004†

Percentage of Portfolio Investments

† The Fund is actively managed and, as such, its composition may differ over time. The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value (excluding repurchase agreements, securities lending collateral and cash).

This Sector Allocation chart is provided for your reference. This new information has been included in response to recent rule and form amendments made by the Securities and Exchange Commission.

3

 GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Performance Summary

December 31, 2004

The following graph shows the value as of December 31, 2004, 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. Performance also would have been reduced had expense limitations not been in effect. In addition to the investment adviser’s decisions regarding issuer/industry 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, 2004.

	Since Inception	Five Years	One Year
Average Annual Total Return Through December 31, 2004
Growth and Income Fund (commenced January 12, 1998)	3.35%	2.51%	18.80%

4

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND 

Statement of Investments

December 31, 2004

Shares		Description	Value
Common Stocks – 99.1%
Brokers – 2.5%
	52,132	Merrill Lynch & Co., Inc.	$	3,115,930
	36,200	The Bear Stearns Companies, Inc.		3,703,622
				6,819,552
Chemicals – 2.9%
	78,400	Rohm and Haas Co.		3,467,632
	93,300	The Dow Chemical Co.		4,619,283
				8,086,915
Computer Hardware – 1.9%
	42,367	CDW Corp.		2,811,050
	119,300	Hewlett-Packard Co.		2,501,721
				5,312,771
Computer Software – 3.7%
	243,800	Activision, Inc.*		4,919,884
	196,411	Microsoft Corp.		5,246,138
				10,166,022
Consumer Durables – 1.3%
	98,700	Masco Corp.		3,605,511
Defense/ Aerospace – 0.9%
	23,900	General Dynamics Corp.		2,499,940
Drugs – 1.6%
	163,000	Pfizer, Inc.		4,383,070
Electrical Utilities – 8.6%
	56,800	Ameren Corp.		2,847,952
	59,000	Dominion Resources, Inc.		3,996,660
	71,512	Entergy Corp.		4,833,496
	89,410	Exelon Corp.		3,940,299
	70,653	FirstEnergy Corp.		2,791,500
	101,709	PPL Corp.		5,419,055
				23,828,962
Energy Resources – 10.9%
	136,700	Burlington Resources, Inc.		5,946,450
	252,300	ChevronTexaco Corp.		13,248,273
	30,200	ConocoPhillips		2,622,266
	159,733	Exxon Mobil Corp.		8,187,914
				30,004,903
Environmental & Other Services – 1.0%
	96,510	Waste Management, Inc.		2,889,509
Financial Technology – 1.0%
	65,000	First Data Corp.		2,765,100
Food & Beverage – 2.6%
	42,800	General Mills, Inc.		2,127,588
	57,195	H.J. Heinz Co.		2,230,033
	80,900	Kraft Foods, Inc.		2,880,849
				7,238,470
Home Products – 2.3%
	43,300	Avon Products, Inc.		1,675,710
	46,300	The Clorox Co.		2,728,459
	37,310	The Procter & Gamble Co.		2,055,035
				6,459,204
Large Banks – 11.7%
	234,050	Bank of America Corp.		10,998,010
	266,690	Citigroup, Inc.		12,849,124
	216,138	J.P. Morgan Chase & Co.		8,431,543
				32,278,677
Media – 3.8%
	81,167	Fox Entertainment Group, Inc.*		2,537,280
	217,300	Historic Time Warner, Inc.*		4,224,312
	104,700	Viacom, Inc. Class B		3,810,033
				10,571,625
Medical Products – 1.3%
	101,751	Baxter International, Inc.		3,514,480
Motor Vehicle – 0.9%
	53,428	Autoliv, Inc.		2,580,572
Paper & Packaging – 1.0%
	114,300	Packaging Corp. of America		2,691,765
Parts & Equipment – 7.1%
	65,200	Eaton Corp.		4,717,872
	187,800	General Electric Co.		6,854,700
	151,212	Tyco International Ltd.		5,404,317
	26,100	United Technologies Corp.		2,697,435
				19,674,324
Property Insurance – 5.8%
	66,025	PartnerRe Ltd.		4,089,589
	60,376	RenaissanceRe Holdings Ltd.		3,144,382
	67,700	The Allstate Corp.		3,501,444
	67,800	Willis Group Holdings Ltd.		2,791,326
	32,526	XL Capital Ltd.		2,525,644
				16,052,385
Regional Banks – 3.7%
	147,000	KeyCorp.		4,983,300
	23,400	PNC Financial Services Group		1,344,096
	106,951	Regions Financial Corp.		3,806,386
				10,133,782
REITS – 5.7%
	72,100	Apartment Investment & Management Co.		2,778,734
	64,800	Developers Diversified Realty Corp.		2,875,176
	165,360	iStar Financial, Inc.		7,484,194
	71,800	Plum Creek Timber Co., Inc.		2,759,992
				15,898,096
Retail Apparel – 2.0%
	64,900	J. C. Penney Co., Inc.		2,686,860
	98,551	The May Department Stores Co.		2,897,399
				5,584,259
Semiconductors – 0.4%
	57,100	National Semiconductor Corp.		1,024,945

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, 2004

Shares		Description	Value
Common Stocks – (continued)
Specialty Financials – 4.5%
	81,800	American Capital Strategies Ltd.@	$	2,728,030
	69,614	Countrywide Financial Corp.		2,576,414
	52,576	Fannie Mae		3,743,937
	39,708	SLM Corp.		2,120,010
	30,500	Washington Mutual, Inc.		1,289,540
				12,457,931
Telecommunications Equipment – 0.9%
	682,100	Nortel Networks Corp.*		2,380,529
Telephone – 4.0%
	247,400	Sprint Corp.		6,147,890
	124,000	Verizon Communications, Inc.		5,023,240
				11,171,130
Thrifts – 0.5%
	21,000	Golden West Financial Corp.		1,289,820
Tobacco – 3.1%
	139,200	Altria Group, Inc.		8,505,120
Transports – 0.5%
	79,600	Southwest Airlines Co.		1,295,888
Trust/ Processors – 1.0%
	85,700	The Bank of New York Co., Inc.		2,864,094
TOTAL COMMON STOCKS
(Cost $226,943,869)			$	274,029,351

Principal		Interest			Maturity
Amount		Rate			Date
							Value
Repurchase Agreement – 0.7%
Joint Repurchase Agreement Account II^
$	1,800,000		2.28	%		1/3/2005	$	1,800,000
Maturity Value  $1,800,342
(Cost $1,800,000)
TOTAL INVESTMENTS BEFORE SECURITIES
LENDING COLLATERAL
(Cost $228,743,869)							$	275,829,351

Shares		Description	Value
Securities Lending Collateral – 0.9%
	2,590,000	Boston Global Investment Trust – Enhanced Portfolio	$	2,590,000
(Cost $2,590,000)
TOTAL INVESTMENTS – 100.7%
(Cost $231,333,869)			$	278,419,351

*	Non-income producing security.
@	All or a portion of security is on loan.
^	Joint repurchase agreement was entered into on December 31, 2004.

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

Investment Abbreviation:
REIT	—	Real Estate Investment Trust

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND 

ADDITIONAL INVESTMENT INFORMATION

JOINT REPURCHASE AGREEMENT ACCOUNT II* — At December 31, 2004, the Growth and Income Fund had an undivided interest in the following Joint Repurchase Agreement Account II which equaled $1,800,000 in principal amount.

	Principal		Interest			Maturity	Maturity
Repurchase Agreements	Amount		Rate			Date	Value
Barclays Capital PLC	$	350,000,000		2.28	%	01/03/2005	$	350,066,500
Barclays Capital PLC		400,000,000		2.30		01/03/2005		400,076,667
Bear Stearns & Co.		500,000,000		2.29		01/03/2005		500,095,417
Greenwich Capital Markets		400,000,000		2.28		01/03/2005		400,076,000
J.P. Morgan Chase & Co.		364,100,000		2.28		01/03/2005		364,169,179
Morgan Stanley & Co.		300,000,000		2.27		01/03/2005		300,056,750
UBS LLC		500,000,000		2.26		01/03/2005		500,094,166
UBS LLC		250,000,000		2.28		01/03/2005		250,047,500
Westdeutsche Landesbank AG		400,000,000		2.28		01/03/2005		400,076,000
TOTAL	$	3,464,100,000					$	3,464,758,179

*  At December 31, 2004, the Joint Repurchase Agreement Account II was fully collateralized by Federal Home Loan Bank, 0.00% to 4.52%, due 03/30/2006 to 08/10/2010; Federal Home Loan Mortgage Association, 0.00% to 11.75%, due 02/01/2005 to 11/01/2035; Federal National Mortgage Association, 0.00% to 11.00%, due 12/15/2005 to 01/01/2035 and Government National Mortgage Association, 6.00%, due 12/15/2033.

The accompanying notes are an integral part of these financial statements.       7

 GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Statement of Assets and Liabilities

December 31, 2004

Assets:
Investment in securities, at value (identified cost $228,743,869)		$	275,829,351
Securities lending collateral, at value			2,590,000
Cash			4,128
Receivables:
	Dividends and interest		439,378
	Fund shares sold		384,030
	Securities lending income		196
Total assets			279,247,083
Liabilities:
Payables:
	Payable upon return of securities loaned		2,590,000
	Amounts owed to affiliates		181,226
	Fund shares repurchased		6,567
Accrued expenses			73,837
Total liabilities			2,851,630
Net Assets:
Paid-in capital			256,035,523
Accumulated undistributed net investment income			371,862
Accumulated net realized loss on investment transactions			(27,097,414	)
Net unrealized gain on investments			47,085,482
NET ASSETS		$	276,395,453
Total shares of beneficial interest outstanding, par value $0.001 (unlimited shares authorized)			23,598,207
Net asset value, offering and redemption price per share		$	11.71

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND 

Statement of Operations

For the Year Ended December 31, 2004

Investment income:
Dividends	$	6,197,040
Interest (including securities lending income of $762)		62,864
Total income		6,259,904
Expenses:
Management fees		1,803,238
Transfer agent fees		96,173
Custody and accounting fees		55,435
Professional fees		44,266
Printing fees		33,638
Trustee fees		14,439
Other		11,525
Total expenses		2,058,714
Less — expense reductions		(2,334	)
Net expenses		2,056,380
NET INVESTMENT INCOME		4,203,524
Realized and unrealized gain on investment transactions:
Net realized gain from investment transactions		31,697,872
Net increase from payment by affiliates to reimburse certain brokerage commissions		51,635
Net change in unrealized gain on investments		6,786,601
Net realized and unrealized gain on investment transactions		38,536,108
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	42,739,632

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

 GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Statements of Changes in Net Assets

	For the			For the
	Year Ended			Year Ended
	December 31, 2004			December 31, 2003
From operations:
Net investment income	$	4,203,524		$	646,377
Net realized gain on investment transactions		31,697,872			234,857
Net increase from payment by affiliates to reimburse certain brokerage commissions		51,635			—
Net change in unrealized gain on investments		6,786,601			11,541,626
Net increase in net assets resulting from operations		42,739,632			12,422,860
Distributions to shareholders:
From net investment income		(3,899,045	)		(561,152	)
From share transactions:
Proceeds from sales of shares		33,498,391			11,379,148
Proceeds in connection with merger		—			178,951,522
Reinvestment of dividends and distributions		3,899,045			561,152
Cost of shares repurchased		(30,158,379	)		(9,348,414	)
Net increase in net assets resulting from share transactions		7,239,057			181,543,408
TOTAL INCREASE		46,079,644			193,405,116
Net assets:
Beginning of year		230,315,809			36,910,693
End of year	$	276,395,453		$	230,315,809
Accumulated undistributed net investment income	$	371,862		$	117,781
Summary of share transactions:
Shares sold		3,088,976			1,300,174
Shares issued in connection with merger		—			18,241,732
Shares issued on reinvestment of dividends and distributions		335,835			57,851
Shares repurchased		(2,861,998	)		(1,100,833	)
NET INCREASE		562,813			18,498,924

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

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Year

			Income (loss) from																								Ratios assuming no
			investment operations																								expense reductions
											Distributions
					Net						to													Ratio of			Ratio of			Ratio of
	Net asset				realized						shareholders			Net asset					Net assets		Ratio of			net investment			total			net investment
	value,		Net		and			Total from			from net			value,					at end		net expenses			income			expenses			income			Portfolio
	beginning		investment		unrealized			investment			investment			end of		Total			of year		to average			to average			to average			to average			turnover
	of year		income(b)		gain (loss)			operations			income			year		return(a)			(in 000s)		net assets			net assets			net assets			net assets			rate
For the Years Ended December 31,
2004	$	10.00	$	0.19	$	1.69		$	1.88		$	(0.17	)	$	11.71		18.80	%	$	276,395		0.86	%		1.75	%		0.86	%		1.75	%		58	%
2003		8.14		0.13		1.85			1.98			(0.12	)		10.00		24.36			230,316		1.02			1.44			1.20			1.26			51
2002		9.33		0.13		(1.19	)		(1.06	)		(0.13	)		8.14		(11.34	)		36,911		1.05			1.51			1.27			1.29			98
2001		10.34		0.05		(1.02	)		(0.97	)		(0.04	)		9.33		(9.34	)		40,593		1.00			0.49			1.17			0.32			48
2000		10.89		0.04		(0.55	)		(0.51	)		(0.04	)		10.34		(4.69	)		37,116		0.99			0.40			1.22			0.17			68

(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.

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

       11

 GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Notes to Financial Statements

December 31, 2004

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 the Goldman Sachs Growth and Income Fund (the “Fund”). The Fund is a diversified portfolio 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 Fund. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts. Actual results could differ from those estimates.

A. Investment Valuation — Investments in securities traded on a U.S. securities exchange or the NASDAQ system are valued daily at their last sale price 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. Investments in investment companies are valued at the net asset value per share on valuation date. 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 or are deemed to be inaccurate by the Investment Adviser are valued at fair value using methods approved by the Trust’s Board of Trustees.

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 which are reduced by any amounts reclaimable by the Fund, where applicable. Interest income is recorded on the basis of interest accrued, premium amortized and discount accreted.

C. Federal Taxes — It is the Fund’s policy to comply with the requirements of the Internal Revenue Code (the “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 Federal income tax rules. Therefore, the source of the Fund’s distributions may be shown in the accompanying financial statements as either from net investment income or net realized gain, on investment transactions, or from paid-in-capital.

     In addition, distributions paid by the Fund’s investments in real estate investment trusts (“REITs”) often include a “return of capital” which is recorded by the Fund as a reduction of the cost basis of the securities held. The Code requires a REIT to distribute at least 95% of its taxable income to investors. In many cases, however, because of “non-cash” expenses such as property depreciation, an equity REIT’s cash flow will exceed its taxable income. The REIT may distribute this excess cash to offer a more competitive yield. This portion of the distribution is deemed a return of capital, and is generally not taxable to shareholders.

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

12

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND 

2. SIGNIFICANT ACCOUNTING POLICIES — (continued)

E. Segregation Transactions — As set forth in the prospectus, the Fund may enter into certain 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 Fund is required to segregate liquid assets on the accounting records equal to or greater than the market value of the corresponding transactions.

F. 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 Fund, including accrued interest, is required to equal or exceed the value of the repurchase agreement, including accrued interest. If the seller defaults or becomes insolvent, realization of the collateral by the Fund may be delayed or limited and there may be a decline in the value of the collateral during the period while the Fund seeks to assert its rights. The underlying securities for all repurchase agreements are held in safekeeping at the Fund’s custodian or designated subcustodians under triparty repurchase agreements.

     Pursuant to exemptive relief granted by the Securities and Exchange Commission (“SEC”) and terms and conditions contained therein, the Fund, together with other registered investment companies having management agreements with Goldman Sachs Asset Management, L.P. (“GSAM”), or its affiliates, transfers uninvested cash into joint accounts, the daily aggregate balance of which is invested in one or more repurchase agreements.

3. AGREEMENTS

GSAM, an affiliate of Goldman, Sachs & Co. (“Goldman Sachs”), serves as investment adviser pursuant to an Investment Management Agreement (the “Agreement”) with the Trust on behalf of the Fund. Under this Agreement, GSAM manages the Fund, subject to the general supervision of the Trust’s Board of Trustees.

     As compensation for the services rendered pursuant to the Agreements, the assumption of the expenses related thereto and administering the Fund’s business affairs, including providing facilities, GSAM is entitled to a fee (“Management Fee”) computed daily and payable monthly, at an annual rate equal to 0.75% of the average daily net assets of the Fund.

     GSAM has voluntarily agreed to limit certain “Other Expenses” of the Fund (excluding Management Fees, Transfer Agent fees and expenses, taxes, interest, brokerage fees, litigation and indemnification costs, shareholder meeting and other extraordinary expenses) to the extent that such expenses exceed, on an annual basis, 0.11% of the average daily net assets of the Fund. GSAM has agreed to maintain this expense limitation reductions through June 30, 2005. Such expense reimbursement, if any, is computed daily and paid monthly. In addition, the Fund is not obligated to reimburse GSAM for prior fiscal year expense reimbursements, if any. For the year ended December 31, 2004, GSAM made no reimbursements to the Fund.

     The Fund has entered into certain offset arrangements with the custodian resulting in a reduction in the Fund’s expenses. For the year ended December 31, 2004, custody fees were reduced by approximately $2,300.

     Goldman Sachs also serves as the Transfer Agent of the Fund for a fee. The 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 the Fund. Goldman Sachs serves as the distributor of the Fund’s shares at no cost to the Fund.

     At December 31, 2004, amounts owed to affiliates were approximately $172,000 and $9,200 for Management and Transfer Agent fees, respectively.

13

 GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Notes to Financial Statements (continued)

December 31, 2004

4. PORTFOLIO SECURITIES TRANSACTIONS

The cost of purchases and proceeds of sales and maturities of long term securities for the year ended December 31, 2004, were $147,573,695 and $137,457,828, respectively.

     For the year ended December 31, 2004, Goldman Sachs earned approximately $24,500 in brokerage commissions from portfolio transactions, executed on behalf of the Fund.

     GSAM voluntarily made a one-time reimbursement of approximately $59,500 to the Fund for certain brokerage commissions, including interest, paid by the Fund over the course of several years.

5. SECURITIES LENDING

Pursuant to exemptive relief granted by the SEC and the terms and conditions contained therein, the Fund may lend its securities through its securities lending agent, Boston Global Advisers (“BGA”) — a wholly owned subsidiary of Goldman Sachs, to certain qualified borrowers including Goldman Sachs. In accordance with the Fund’s securities lending procedures, 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 Fund bears the risk of delay on recovery or loss of rights in the collateral should the borrower of the securities fail financially.

     Both the Fund and BGA receive compensation relating to the lending of the Fund’s securities. The amount earned by the Fund for the year ended December 31, 2004, is reported parenthetically on the Statement of Operations. For the year ended December 31, 2004, BGA earned $135 in fees as securities lending agent. At December 31, 2004, the Fund loaned securities having a market value of $2,467,900 collateralized by cash in the amount of $2,590,000. The Fund invests 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 of up to 0.10% of the average daily net assets of the Enhanced Portfolio. The Enhanced Portfolio invests in high quality money market instruments. The Fund bears the risk of incurring a loss from the investment of cash collateral due to either credit or market factors.

6. LINE OF CREDIT FACILITY

The Fund participates in a $350,000,000 committed, unsecured revolving line of credit facility. Under the most restrictive arrangement, the Fund must own securities having a market value in excess of 300% (400% prior to May 26, 2004) 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. This committed facility also requires a fee to be paid by the Fund based on the amount of the commitment that has not been utilized. During the year ended December 31, 2004, the Fund did not have any borrowings under this facility.

7. ADDITIONAL TAX INFORMATION

The tax character of distributions paid during the fiscal years ended December 31, 2004 and December 31, 2003 were as follows:

	For the year ended December 31,
	2004		2003
Distributions paid from:
Ordinary income	$	3,899,045	$	561,152
Total taxable distributions	$	3,899,045	$	561,152

14

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND 

7. ADDITIONAL TAX INFORMATION — (continued)

As of December 31, 2004, the components of accumulated earnings (losses) on a tax basis were as follows:

Undistributed ordinary income — net		$	348,470
Capital loss carryforward:*
	Expiring 2009		(20,932,445	)
	Expiring 2010		(5,509,772	)
Total capital loss carryforward			(26,442,217	)
Timing differences (related to the recognition of certain REIT dividends for tax purposes)			23,392
Unrealized gains — net			46,430,285
Total accumulated earnings — net		$	20,359,930

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

At December 31, 2004, the Fund’s aggregate security unrealized gains and losses based on a cost for U.S. federal income tax purposes was as follows:

Tax cost	$	231,989,066
Gross unrealized gain		48,312,011
Gross unrealized loss		(1,881,726	)
Net unrealized security gain	$	46,430,285

The difference between book-basis and tax-basis unrealized gains (losses) is attributable primarily to wash sales and return of capital distributions from underlying fund investments.

8. CERTAIN RECLASSIFICATIONS

In order to present certain components of the Fund’s capital accounts on a tax basis, certain reclassifications have been recorded to the Fund’s accounts. The Fund reclassified $50,398 from accumulated undistributed net investment income and $115,396 from paid-in capital to accumulated net realized loss on investment transactions. This reclassification has no impact on the net asset value of the Fund. Reclassifications result primarily from the difference in the tax treatment of investments in partnerships and adjustments related to prior year merger activity.

9. 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 Fund of Protective Investment Company by the Fund. The acquisition was completed on December 19, 2003 following the approval of the Protective Fund shareholders on December 9, 2003.

     Pursuant to the Protective Agreement, the assets and liabilities of the Protective Growth & Income Fund were transferred to the Fund in a tax-free exchange for shares of the Fund as follows:

					Acquired Fund’s
	Exchanged Shares		Value of		Shares Outstanding
Survivor/Acquired Fund	of Survivor Issued		Exchanged Shares		as of December 19, 2003
Growth & Income/ Protective Growth & Income		18,241,732	$	178,951,522		14,281,379

15

 GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Notes to Financial Statements (continued)

December 31, 2004

9. MERGERS AND REORGANIZATIONS — (continued)

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 Fund’s unrealized appreciation (depreciation) and capital loss carryforwards.

	Survivor									Survivor Fund’s
	Fund’s		Acquired Fund’s							Aggregate
	Aggregate		Aggregate		Acquired Fund’s					Net Assets
	Net Assets		Net Assets		Unrealized		Acquired Fund’s			immediately
	before		before		Appreciation/		Capital Loss			after
Survivor/Acquired Fund	acquisition		acquisition		(Depreciation)		Carryforward*			acquisition
Growth & Income/ Protective Growth & Income	$	46,773,384	$	178,951,522	$	29,603,787	$	(48,963,923	)	$	225,724,906

*  For U.S. federal income tax purposes, certain limitations may apply to the utilization of the Acquired Fund’s capital loss carryforwards.

16

Report of Independent Registered Public Accounting Firm

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

We have audited the accompanying statement of assets and liabilities of Goldman Sachs Growth and Income Fund (one of the funds comprising the Goldman Sachs Variable Insurance Trust) (the “Fund”), including the statement of investments, as of December 31, 2004, and the related statement 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 five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (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 consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2004, by correspondence with the custodian and others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Goldman Sachs Growth and Income Fund at December 31, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York

February 9, 2005

17

 GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Fund Expenses (Unaudited) — Six Month Period Ended December 31, 2004

          As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

          The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2004 through December 31, 2004.

Actual Expenses — The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account for this period.

Hypothetical Example for Comparison Purposes — The second line of table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

          Please note that the expenses shown in the table are meant to highlight your ongoing costs only. As a shareholder of the Fund, you do not incur any transaction costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. The second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds whose shareholders may incur transaction costs.

						Expenses Paid
						for the
	Beginning		Ending Account			6 months
	Account Value		Value			ended
	7/1/04		12/31/04			12/31/04*
Actual	$	1,000	$	1,113.40		$	4.61
Hypothetical 5% return		1,000		1,020.77	+		4.41

*  Expenses are calculated using the Fund’s annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended December 31, 2004. Expenses are calculated by multiplying the annualized expense ratio by the average account value for such period; then multiplying the result by the number of days in the most recent fiscal half year; and then dividing that result by the number of days in the fiscal year. Expense ratios for the most recent fiscal half year may differ from expense ratios based on one-year data in the Financial Highlights. The annualized net expense ratio for the period was 0.87%.

+  Hypothetical expenses are based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses.

18

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND 

Trustees and Officers (Unaudited)

Independent Trustees

				Number of
		Term of		Portfolios in
	Position(s)	Office and		Fund Complex	Other
Name,	Held with	Length of	Principal Occupation(s)	Overseen by	Directorships
Address and Age1	the Trust2	Time Served3	During Past 5 Years	Trustee4	Held by Trustee5
Ashok N. Bakhru Age: 62	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, Scholarship 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) (2000-2003). Chairman of the Board and Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
John P. Coblentz, Jr. Age: 63	Trustee	Since 2003	Partner, Deloitte & Touche LLP (June 1975-May 2003). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Patrick T. Harker Age: 46	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Mary P. McPherson Age: 69	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Wilma J. Smelcer Age: 55	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-April 2004). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	Lawson Products Inc. (distributor of industrial products).
Richard P. Strubel Age: 65	Trustee	Since 1987	Vice Chairman and Director, Unext, Inc. (provider of educational services via the internet) (2003-Present); President, COO and Director, Unext, Inc. (1999-2003); 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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	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).

19

 GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND

Trustees and Officers (Unaudited) (continued)

Interested Trustees

				Number of
		Term of		Portfolios in
	Position(s)	Office and		Fund Complex	Other
Name,	Held with	Length of	Principal Occupation(s)	Overseen by	Directorships
Address and Age1	the Trust2	Time Served3	During Past 5 Years	Trustee4	Held by Trustee5
*Alan A. Shuch Age: 55	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
*Kaysie P. Uniacke Age: 43	Trustee & President	Since 2001 Since 2002	Managing Director, GSAM (1997-Present). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies). President—Goldman Sachs Mutual Fund Complex (2002- Present) (registered investment companies). Assistant Secretary—Goldman Sachs Mutual Fund Complex (1997-2002) (registered investment companies).	63	None

*	These persons are considered to be “Interested Trustees” because they hold positions with Goldman Sachs and own securities issued by The Goldman Sachs Group, Inc. Each Interested Trustee holds comparable positions with certain other companies of which Goldman Sachs, GSAM or an affiliate thereof is the investment adviser, administrator and/or distributor.
1	Each Trustee may be contacted by writing to the Trustee, c/o Goldman Sachs, One New York Plaza, 37th 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, 2004, the Trust consisted of 57 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 of America): 1-800-292-4726

20

GOLDMAN SACHS VARIABLE INSURANCE TRUST GROWTH AND INCOME FUND 

Officers of the Trust* (Unaudited)

		Term of
		Office and
	Position(s) Held	Length of
Name, Address And Age	With the Trust	Time Served1	Principal Occupation(s) 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).
James A. Fitzpatrick 4900 Sears Tower Chicago, IL 60606 Age: 44	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: 42	Vice President	Since 2001	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). Vice President—Goldman Sachs Mutual Fund Complex (registered investment companies). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies) (December 2002-May 2004).
John M. Perlowski 32 Old Slip New York, NY 10005 Age: 40	Treasurer	Since 1997	Managing Director, Goldman Sachs (November 2003-Present) and Vice President, Goldman Sachs (July 1995-November 2003). Treasurer—Goldman Sachs Mutual Fund Complex (registered investment companies).
Howard B. Surloff One New York Plaza 37th Floor New York, NY 10004 Age: 39	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 Growth and Income Fund — Tax Information (Unaudited)

For the year ended December 31, 2004, 100% of the dividends paid from net investment company taxable income by the Fund qualify for the dividends received deduction available to corporations.

21

Trustees and Officers (Unaudited) (continued)

TRUSTEES	OFFICERS
Ashok N. Bakhru, Chairman	Kaysie P. Uniacke, President
John P. Coblentz, Jr.	James A. Fitzpatrick, Vice President
Patrick T. Harker	James A. McNamara, Vice President
Mary Patterson McPherson	John M. Perlowski, Treasurer
Alan A. Shuch	Howard B. Surloff, Secretary
Wilma J. Smelcer
Richard P. Strubel
Kaysie P. Uniacke
GOLDMAN, SACHS & CO. Distributor and Transfer Agent
GOLDMAN SACHS ASSET MANAGEMENT, L.P. Investment Adviser
Visit our internet address: www.gs.com/funds to obtain the most recent month-end returns.
The reports concerning the Fund included in this shareholder report may contain certain forward-looking statements about the factors that may affect the performance of the Fund in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Fund, 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 Fund. 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.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (i) without charge, upon request by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders); and (ii) on the Securities and Exchange Commission Web site at http://www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“the Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the Commission’s website at http://www.sec.gov. The Fund’s Form N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Form N-Q may be obtained upon request and without charge by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders).
This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus for the Fund. Please consider the Fund’s objectives, risks and charges and expenses, and read the Prospectus carefully before investing.
Holdings are as of December 31, 2004 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 Fund is subject to the risk of rising and falling stock prices. In recent years, the U.S. stock market has experienced substantial price volatility.
	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 Fund.
© Copyright 2005 Goldman, Sachs & Co. All rights reserved. Date of first use: February 18, 2005
VITG&IAR

Goldman

Sachs Variable Insurance Trust

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

CORE^SM U.S. Equity Fund

Annual Report

December 31, 2004

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, 2004.

Market Review

For the one-year reporting period ended December 31, 2004, the Standard & Poor’s 500 Index (the “Index”) returned 10.88%, driven by strong returns towards the end of the year. Within the Index, the Energy (+31.6%) and Utilities (+24.7%) sectors experienced the largest absolute gains, while the top-weighted Financials sector (+10.9%) contributed most (weight times performance) for the period. Value stocks outperformed their growth counterparts by a large margin in 2004, with the Russell 1000 Value Index returning 16.49% versus the Russell 1000 Growth Index return of 6.30%. Small-cap stocks also significantly outperformed large-cap stocks as the Russell 2000 Index and Russell 1000 Index returned 18.33% and 11.40%, respectively. This was largely due to small-cap Financials and Energy stocks outpacing their larger counterparts.

Investment Objective

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

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2004*

		% of
Company	Business	Net Assets
Microsoft Corp.	Software		3.6	%
Bank of America Corp.	Banks		3.2
Pfizer, Inc.	Pharmaceuticals		3.2
Johnson & Johnson	Pharmaceuticals		3.2
International Business Machines Corp.	Computers & Peripherals		3.0
JPMorgan Chase & Co.	Diversified Financials		2.8
Verizon Communications, Inc.	Diversified Telecommunication Services		2.6
eBay, Inc.	Internet & Catalog Retail		2.3
Viacom, Inc. Class B	Media		2.1
QUALCOMM, Inc.	Communications Equipment		2.0

* 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.

1

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

Shareholder Letter (continued)

Performance Review

Over the one-year period that ended December 31, 2004, the Fund generated a cumulative total return of 14.94%. Over the same time period, the Fund’s benchmark, the Standard & Poor’s 500 Index (with dividends reinvested) generated a cumulative total return of 10.88%. Over the fiscal year, the Fund’s outperformance versus its benchmark was due to solid returns from the CORE themes, a disciplined approach to security analysis, and rigorous risk management.

Of the CORE themes, Valuation and Earnings Quality were the biggest positive contributors to relative returns, as inexpensive companies with cash-based sources of earnings outperformed their industry counterparts. Momentum, Analyst Sentiment, and Profitability also added value, while Management Impact was only slightly positive. To learn more about the CORE investment philosophy and themes, please refer to the Fund’s prospectus.

Stock selection was positive in eight of the 10 sectors contained in the S&P 500 Index, and was particularly strong in the Financials, Consumer Staples, and Information Technology sectors. Only holdings in the Industrials and Consumer Discretionary sectors lagged their peers in the benchmark for the period.

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 19, 2005

2

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

SECTOR ALLOCATION AS OF DECEMBER 31, 2004†

Percentage of Portfolio Investments

† The Fund is actively managed and, as such, its composition may differ over time. The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value (excluding repurchase agreements, securities lending collateral and cash).

This Sector Allocation chart is provided for your reference. This new information has been included in response to recent rule and form amendments made by the Securities and Exchange Commission.

3

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

Performance Summary

December 31, 2004

The following graph shows the value as of December 31, 2004, 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. Performance also would have been reduced had expense limitations not been in effect. In addition to the investment adviser’s decisions regarding issuer/industry 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, 2004.

	Since Inception	Five Years	One Year
Average Annual Total Return Through December 31, 2004
CORE U.S. Equity Fund (commenced February 13, 1998)	4.11%	-1.54%	14.94%

4

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

Statement of Investments

December 31, 2004

Shares
		Description	Value
Common Stocks – 98.5%
Aerospace & Defense – 3.5%
	89,800	Northrop Grumman Corp.	$	4,881,528
	115,400	Raytheon Co.		4,480,982
	171,900	The Boeing Co.		8,899,263
				18,261,773
Air Freight & Couriers – 1.3%
	54,400	FedEx Corp.		5,357,856
	23,935	Ryder System, Inc.		1,143,375
				6,501,231
Automobiles – 1.8%
	637,100	Ford Motor Co.		9,327,144
Banks – 6.4%
	360,266	Bank of America Corp.		16,928,899
	22,500	Bank of Hawaii Corp.		1,141,650
	161,700	U.S. Bancorp.		5,064,444
	24,500	UnionBanCal Corp.		1,579,760
	126,800	Wachovia Corp.		6,669,680
	49,000	Washington Mutual, Inc.		2,071,720
				33,456,153
Biotechnology – 2.8%
	139,500	Biogen Idec, Inc.*		9,292,095
	20,900	Chiron Corp.*		696,597
	50,300	Genentech, Inc.*		2,738,332
	42,200	ImClone Systems, Inc.*		1,944,576
				14,671,600
Chemicals – 0.7%
	68,800	Monsanto Co.		3,821,840
Commercial Services & Supplies – 2.2%
	405,800	Cendant Corp.		9,487,604
	16,500	Republic Services, Inc.		553,410
	41,400	Waste Management, Inc.		1,239,516
				11,280,530
Communications Equipment – 4.1%
	24,925	Juniper Networks, Inc.*		677,711
	585,000	Motorola, Inc.		10,062,000
	243,800	QUALCOMM, Inc.		10,337,120
				21,076,831
Computers & Peripherals – 3.6%
	8,000	Apple Computer, Inc.*		515,200
	13,300	Dell, Inc.*		560,462
	159,500	International Business Machines Corp.		15,723,510
	26,700	NCR Corp.*		1,848,441
				18,647,613
Diversified Financials – 8.3%
	73,232	Citigroup, Inc.		3,528,318
	124,900	Freddie Mac		9,205,130
	372,200	JPMorgan Chase & Co.		14,519,522
	98,900	Merrill Lynch & Co., Inc.		5,911,253
	103,500	Moody’s Corp.		8,988,975
	12,800	Principal Financial Group, Inc.		524,032
	6,000	The Bear Stearns Companies, Inc.		613,860
				43,291,090
Diversified Telecommunication Services – 3.2%
	135,400	Sprint Corp.		3,364,690
	328,800	Verizon Communications, Inc.		13,319,688
				16,684,378
Electric Utilities – 1.7%
	17,900	Alliant Energy Corp.		511,940
	134,600	Edison International		4,311,238
	31,200	Northeast Utilities		588,120
	108,200	PG&E Corp.*		3,600,896
				9,012,194
Electrical Equipment – 0.3%
	24,400	Emerson Electric Co.		1,710,440
Electronic Equipment & Instruments – 0.1%
	25,900	Avnet, Inc.*		472,416
Food & Drug Retailing – 0.5%
	74,615	SUPERVALU, INC.		2,575,710
Food Products – 2.9%
	172,100	Archer-Daniels-Midland Co.		3,839,551
	93,700	Kraft Foods, Inc.		3,336,657
	440,200	Tyson Foods, Inc.		8,099,680
				15,275,888
Health Care Equipment & Supplies – 1.4%
	38,100	Applera Corp. – Applied Biosystems Group		796,671
	8,900	Becton, Dickinson & Co.		505,520
	70,900	Boston Scientific Corp.*		2,520,495
	10,347	Guidant Corp.		746,019
	28,700	IMS Health, Inc.		666,127
	22,500	Zimmer Holdings, Inc.*		1,802,700
				7,037,532
Health Care Providers & Services – 1.4%
	7,000	Aetna, Inc.		873,250
	39,500	Cardinal Health, Inc.		2,296,925
	84,900	Caremark Rx, Inc.*		3,347,607
	22,200	McKesson Corp.		698,412
				7,216,194
Hotels Restaurants & Leisure – 0.2%
	31,100	GTECH Holdings Corp.		807,045
Household Durables – 1.7%
	65,000	Harman International Industries, Inc.		8,255,000
	8,500	The Black & Decker Corp.		750,805
				9,005,805
Household Products – 1.5%
	142,500	The Procter & Gamble Co.		7,848,900

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

5

Statement of Investments (continued)

December 31, 2004

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

Shares
		Description	Value
Common Stocks – (continued)
Household Products – (continued)
Industrial Conglomerates – 4.5%
	86,200	3M Co.	$	7,074,434
	261,600	General Electric Co.		9,548,400
	89,400	Reynolds American, Inc.@		7,026,840
				23,649,674
Insurance – 5.6%
	12,900	ACE Ltd.		551,475
	127,100	Loews Corp.		8,935,130
	97,800	MBIA, Inc.		6,188,784
	28,300	MetLife, Inc.		1,146,433
	5,700	Nationwide Financial Services, Inc.		217,911
	174,500	Prudential Financial, Inc.		9,590,520
	22,500	The Chubb Corp.		1,730,250
	21,139	The St. Paul Travelers Companies, Inc.		783,623
				29,144,126
Internet & Catalog Retail – 2.3%
	102,300	eBay, Inc.*		11,895,444
Internet Software & Services – 0.1%
	12,825	McAfee, Inc.*		371,027
IT Consulting & Services – 1.2%
	98,300	Computer Sciences Corp.*		5,541,171
	89,100	Unisys Corp.*		907,038
				6,448,209
Leisure Equipment & Products – 0.3%
	24,900	Polaris Industries, Inc.		1,693,698
Media – 3.9%
	20,764	Comcast Corp.*		691,026
	410,800	Historic Time Warner, Inc.*		7,985,952
	18,300	Liberty Media International, Inc.*		846,009
	300,500	Viacom, Inc. Class B		10,935,195
				20,458,182
Metals & Mining – 1.0%
	16,200	Alcoa, Inc.		509,004
	9,800	Newmont Mining Corp.		435,218
	79,000	Nucor Corp.		4,134,860
				5,079,082
Multiline Retail – 1.9%
	17,200	Costco Wholesale Corp.		832,652
	7,472	Dillard’s, Inc.		200,773
	41,017	Kmart Holding Corp.*@		4,058,632
	94,500	Wal-Mart Stores, Inc.		4,991,490
				10,083,547
Oil & Gas – 7.5%
	90,300	Anadarko Petroleum Corp.		5,852,343
	183,172	Burlington Resources, Inc.		7,967,982
	27,288	ConocoPhillips		2,369,417
	106,500	Devon Energy Corp.		4,144,980
	146,366	Exxon Mobil Corp.		7,502,721
	121,100	Occidental Petroleum Corp.		7,067,396
	43,000	Sunoco, Inc.		3,513,530
	18,900	Valero Energy Corp.		858,060
				39,276,429
Paper & Forest Products – 0.3%
	56,600	Louisiana-Pacific Corp.		1,513,484
Personal Products – 1.9%
	224,200	The Gillette Co.		10,039,676
Pharmaceuticals – 8.2%
	63,400	Allergan, Inc.		5,139,838
	264,300	Johnson & Johnson		16,761,906
	120,600	Merck & Co., Inc.		3,876,084
	629,405	Pfizer, Inc.		16,924,700
				42,702,528
Real Estate – 0.5%
	95,900	Equity Office Properties Trust		2,792,608
Road & Rail – 1.0%
	82,800	Burlington Northern Santa Fe Corp.		3,917,268
	15,700	Union Pacific Corp.		1,055,825
				4,973,093
Semiconductor Equipment & Products – 2.5%
	116,800	Advanced Micro Devices, Inc.*		2,571,936
	28,100	Cree, Inc.*@		1,126,248
	52,400	Freescale Semiconductor, Inc.*		933,768
	69,108	Freescale Semiconductor, Inc. Class B*		1,268,823
	353,700	Micron Technology, Inc.*		4,368,195
	104,600	Texas Instruments, Inc.		2,575,252
				12,844,222
Software – 5.3%
	151,200	Autodesk, Inc.		5,738,040
	26,700	BMC Software, Inc.*		496,620
	87,000	Cadence Design Systems, Inc.*		1,201,470
	700,600	Microsoft Corp.		18,713,026
	51,200	Symantec Corp.*		1,318,912
				27,468,068
Specialty Retail – 0.8%
	119,300	AutoNation, Inc.*		2,291,753
	16,900	Barnes & Noble, Inc.*		545,363
	21,000	Limited Brands, Inc.		483,420
	21,200	The Home Depot, Inc.		906,088
				4,226,624
Wireless Telecommunication Services – 0.1%
	12,600	United States Cellular Corp.*		563,976
TOTAL COMMON STOCKS
(Cost $459,548,409)			$	513,206,004

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

6

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

Principal		Interest			Maturity
Amount		Rate			Date
						Value
Repurchase Agreement – 1.6%
Joint Repurchase Agreement Account II^
$	8,200,000		2.28	%	1/3/2005	$	8,200,000
Maturity Value  $8,201,558
(Cost $8,200,000)
TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL
(Cost $467,748,409)						$	521,406,004

Shares
		Description	Value
Securities Lending Collateral – 1.6%
	8,380,250	Boston Global Investment Trust – Enhanced Portfolio	$	8,380,250
(Cost $8,380,250)
TOTAL INVESTMENTS – 101.7%
(Cost $476,128,659)			$	529,786,254

*	Non-income producing security.
@	All or portion of security is on loan.
^	Joint repurchase agreement was entered into on December 31, 2004.

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

ADDITIONAL INVESTMENT INFORMATION

JOINT REPURCHASE AGREEMENT ACCOUNT II* — At December 31, 2004, the CORE U.S. Equity Fund had an undivided interest in the following Joint Repurchase Agreement Account II which equaled $8,200,000 in principal amount.

	Principal		Interest			Maturity	Maturity
Repurchase Agreements	Amount		Rate			Date	Value
Barclays Capital PLC	$	350,000,000		2.28	%	01/03/2005	$	350,066,500
Barclays Capital PLC		400,000,000		2.30		01/03/2005		400,076,667
Bear Stearns & Co.		500,000,000		2.29		01/03/2005		500,095,417
Greenwich Capital Markets		400,000,000		2.28		01/03/2005		400,076,000
J.P. Morgan Chase & Co.		364,100,000		2.28		01/03/2005		364,169,179
Morgan Stanley & Co.		300,000,000		2.27		01/03/2005		300,056,750
UBS LLC		500,000,000		2.26		01/03/2005		500,094,166
UBS LLC		250,000,000		2.28		01/03/2005		250,047,500
Westdeutsche Landesbank AG		400,000,000		2.28		01/03/2005		400,076,000
TOTAL	$	3,464,100,000					$	3,464,758,179

*  At December 31, 2004, the Joint Repurchase Agreement Account II was fully collateralized by Federal Home Loan Bank, 0.00% to 4.52%, due 03/30/2006 to 08/10/2010; Federal Home Loan Mortgage Association, 0.00% to 11.75%, due 02/01/2005 to 11/01/2035; Federal National Mortgage Association, 0.00% to 11.00%, due 12/15/2005 to 01/01/2035 and Government National Mortgage Association, 6.00%, due 12/15/2033.

FUTURES CONTRACTS — At December 31, 2004, the following futures contracts were open as follows:

	Number of		Settlement				Unrealized
Type	Contracts Long		Month		Market Value		Gain
S & P 500 Index		107		March 2005	$	6,493,295	$	38,483

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

7

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

Statement of Assets and Liabilities

December 31, 2004

Assets:
Investment in securities, at value (identified cost $467,748,409)		$	521,406,004
Securities lending collateral, at value			8,380,250
Cash(a)			661,150
Receivables:
	Investment securities sold		15,506,133
	Fund shares sold		1,025,693
	Variation margin		599,998
	Dividends and interest		432,106
	Securities lending income		13,818
Total assets			548,025,152
Liabilities:
Due to custodian			2,598,778
Payables:
	Investment securities purchased		15,424,787
	Payable upon return of securities loaned		8,380,250
	Amounts owed to affiliates		296,834
	Fund shares repurchased		113,433
Accrued expenses			73,630
Total liabilities			26,887,712
Net Assets:
Paid-in capital			512,639,917
Accumulated undistributed net investment income			61,872
Accumulated net realized loss on investment and futures transactions			(45,260,427	)
Net unrealized gain on investments and futures transactions			53,696,078
NET ASSETS		$	521,137,440
Total shares of beneficial interest outstanding, par value $0.001 (unlimited shares authorized)			41,968,657
Net asset value, offering and redemption price per share		$	12.42

(a)  Represents restricted cash relating to initial margin requirements and collateral on futures transactions.

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

8

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

Statement of Operations

For the Year Ended December 31, 2004

Investment income:
Dividends		$	8,492,131
Interest (including securities lending income of $65,536)			136,287
Total income			8,628,418
Expenses:
Management fees			3,003,641
Transfer Agent fees			171,637
Custody and accounting fees			88,414
Professional fees			42,112
Printing fees			33,435
Trustee fees			14,439
Other			11,152
Total expenses			3,364,830
Less — expense reductions			(131,818	)
Net expenses			3,233,012
NET INVESTMENT INCOME			5,395,406
Realized and unrealized gain on investment and futures transactions:
Net realized gain from:
	Investment transactions		51,495,581
	Futures transactions		380,425
Net change in unrealized gain on:
	Investments		5,834,750
	Futures		7,093
Net realized and unrealized gain on investment and futures transactions			57,717,849
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		$	63,113,255

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

9

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

Statements of Changes in Net Assets

	For the			For the
	Year Ended			Year Ended
	December 31, 2004			December 31, 2003
From operations:
Net investment income	$	5,395,406		$	1,327,907
Net realized gain on investment and futures transactions		51,876,006			1,301,741
Net change in unrealized gain on investments and futures		5,841,843			45,731,567
Net increase in net assets resulting from operations		63,113,255			48,361,215
Distributions to shareholders:
From net investment income		(5,358,837	)		(1,302,647	)
From share transactions:
Proceeds from sales of shares		113,401,573			33,376,750
Proceeds in connection with merger		—			172,009,752
Reinvestment of dividends and distributions		5,358,837			1,302,647
Cost of shares repurchased		(38,402,436	)		(14,161,752	)
Net increase in net assets resulting from share transactions		80,357,974			192,527,397
TOTAL INCREASE		138,112,392			239,585,965
Net assets:
Beginning of year		383,025,048			143,439,083
End of year	$	521,137,440		$	383,025,048
Accumulated undistributed net investment income	$	61,872		$	25,303
Summary of share transactions:
Shares sold		9,833,811			3,484,303
Shares issued in connection with merger		—			16,120,873
Shares issued on reinvestment of dividends and distributions		433,562			123,709
Shares repurchased		(3,365,832	)		(1,564,060	)
TOTAL INCREASE		6,901,541			18,164,825

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

10

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

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Year

			Income (loss) from																														Ratios assuming no
			investment operations								Distributions to shareholders																						expense reductions
					Net																									Ratio of			Ratio of			Ratio of
	Net asset				realized									From						Net asset					Net assets		Ratio of			net investment			total			net investment
	value,		Net		and			Total from			From net			net						value,					at end		net expenses			income			expenses			income			Portfolio
	beginning		investment		unrealized			investment			investment			realized			Total			end of		Total			of year		to average			to average			to average			to average			turnover
	of year		income(b)		gain (loss)			operations			income			gain			distributions			year		return(a)			(in 000s)		net assets			net assets			net assets			net assets			rate
For the Years ended December 31,
2004	$	10.92	$	0.14	$	1.49		$	1.63		$	(0.13	)	$	—		$	(0.13	)	$	12.42		14.94	%	$	521,137		0.75	%		1.26	%		0.78	%		1.23	%		128	%
2003		8.49		0.07		2.43			2.50			(0.07	)		—			(0.07	)		10.92		29.47			383,025		0.85			0.79			0.85			0.79			92
2002		10.94		0.06		(2.45	)		(2.39	)		(0.06	)		—			(0.06	)		8.49		(21.89	)		143,439		0.85			0.60			0.86			0.59			84
2001		12.48		0.05		(1.54	)		(1.49	)		(0.05	)		—			(0.05	)		10.94		(11.94	)		163,904		0.81			0.48			0.82			0.47			72
2000		13.98		0.11		(1.46	)		(1.35	)		(0.08	)		(0.07	)		(0.15	)		12.48		(9.62	)		139,303		0.85			0.87			0.87			0.85			32

(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.

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

11

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

Notes to Financial Statements

December 31, 2004

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 the Goldman Sachs CORE U.S. Equity Fund (the “Fund”). The Fund is a diversified portfolio 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 Fund. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts. Actual results could differ from those estimates.

A. Investment Valuation — Investments in securities traded on a U.S. securities exchange or the NASDAQ system are valued daily at their last sale price 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. Investments in investment companies are valued at the net asset value per share on valuation date. 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 or are deemed to be inaccurate by the Investment Adviser are valued at fair value using methods approved by the Trust’s Board of Trustees.

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 which are reduced by any amounts reclaimable by the Fund, where applicable. Interest income is recorded on the basis of interest accrued, premium amortized and discount accreted.

C. Federal Taxes — It is the Fund’s policy to comply with the requirements of the Internal Revenue Code (the “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 Federal income tax rules. Therefore, the source of the Fund’s distributions may be shown in the accompanying financial statements as either from net investment income or net realized gains, or from paid-in-capital.

     In addition, distributions paid by the Fund’s investments in real estate investment trusts (“REITs”) often include a “return of capital” which is recorded by the Fund as a reduction of the cost basis of the securities held. The Code requires a REIT to distribute at least 95% of its taxable income to investors. In many cases, however, because of “non-cash” expenses such as property depreciation, an equity REIT’s cash flow will exceed its taxable income. The REIT may distribute this excess cash to offer a more competitive yield. This portion of the distribution is deemed a return of capital, and is generally not taxable to shareholders.

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

E. Segregation Transactions — As set forth in the prospectus, the Fund may enter into certain derivative transactions to seek to increase total return. Forward foreign currency exchange contracts, futures contracts, written options, when-issued

12

Notes to Financial Statements (continued)

December 31, 2004

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

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

securities and forward commitments represent examples of such transactions. As a result of entering into these transactions, the Fund is required to segregate liquid assets on the accounting records equal to or greater than the market value of the corresponding transactions.

F. 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 Fund, including accrued interest, is required to equal or exceed the value of the repurchase agreement, including accrued interest. If the seller defaults or becomes insolvent, realization of the collateral by the Fund may be delayed or limited and there may be a decline in the value of the collateral during the period while the Fund seeks to assert its rights. The underlying securities for all repurchase agreements are held in safekeeping at the Fund’s custodian or designated subcustodians under triparty repurchase agreements.

     Pursuant to exemptive relief granted by the Securities and Exchange Commission (“SEC”) and terms and conditions contained therein, the Fund, together with other registered investment companies having management agreements with Goldman Sachs Asset Management, L.P. (“GSAM”), or its affiliates, transfers uninvested cash into joint accounts, the daily aggregate balance of which is invested in one or more repurchase agreements.

G. Futures Contracts — The Fund 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 Fund is required to deposit with a broker, or the Fund’s custodian bank on behalf of the 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 Fund 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 Fund realizes a gain or loss which is reported in the Statement of Operations.

     The use of futures contracts involve, to varying degrees, elements of market and counterparty risk which may exceed the amounts recognized in the Statement 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 Fund’s strategies and potentially result in a loss.

3. AGREEMENTS

GSAM, an affiliate of Goldman, Sachs & Co. (“Goldman Sachs”), serves as investment adviser pursuant to an Investment Management Agreement (the “Agreement”) with the Trust on behalf of the Fund. Under this Agreement, GSAM manages the Fund, subject to the general supervision of the Trust’s Board of Trustees.

     As compensation for the services rendered pursuant to the Agreement, the assumption of the expenses related thereto and administering the Fund’s business affairs, including providing facilities, GSAM is entitled to a fee (“Management Fee”) computed daily and payable monthly, at an annual rate equal to 0.70% of the average daily net assets of the Fund. Effective June 1, 2004, GSAM voluntarily agreed to waive a portion of its Management Fee for the Fund, equal to an annual percentage rate of 0.05% of the Fund’s average daily net assets. For the year ended December 31, 2004, GSAM waived Management Fees of approximately $130,900.

     GSAM has voluntarily agreed to limit certain “Other Expenses” of the Fund (excluding Management Fees, Transfer Agent fees and expenses, taxes, interest, brokerage fees, litigation and indemnification costs, shareholder meeting and other extraordinary expenses) to the extent that such expenses exceed, on an annual basis, 0.16% of the average daily net assets of the Fund. GSAM has agreed to maintain this expense limitation reductions through June 30, 2005. Such expense reimbursement, if any, is computed daily and paid monthly. In addition, the Fund is not obligated to reimburse GSAM for

13

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

3. AGREEMENTS (continued)

prior fiscal year expense reimbursements, if any. For the year ended December 31, 2004, GSAM made no reimbursements to the Fund.

     The Fund has entered into certain offset arrangements with the custodian resulting in a reduction in the Fund’s expenses. For the year ended December 31, 2004, custody fees were reduced by approximately $900.

     Goldman Sachs also serves as Transfer Agent of the Fund 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 the Fund. Goldman Sachs serves as the distributor of the Fund’s shares at no cost to the Fund.

     At December 31, 2004, amounts owed to affiliates were approximately $279,600 and $17,200 for Management and Transfer Agent fees, respectively.

4. PORTFOLIO SECURITIES TRANSACTIONS

The cost of purchases and proceeds of sales and maturities of long term securities for the year ended December 31, 2004, were $618,164,199 and $543,124,662, respectively.

     For the year ended December 31, 2004, Goldman Sachs earned approximately $6,200 in brokerage commissions from futures transactions executed on behalf of the Fund.

5. SECURITIES LENDING

Pursuant to exemptive relief granted by the SEC and the terms and conditions contained therein, the Fund may lend its securities through its securities lending agent, Boston Global Advisers (“BGA”) — a wholly owned subsidiary of Goldman Sachs, to certain qualified borrowers including Goldman Sachs. In accordance with the Fund’s securities lending procedures, 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 Fund bears the risk of delay on recovery or loss of rights in the collateral should the borrower of the securities fail financially.

     Both the Fund and BGA receive compensation relating to the lending of the Fund’s securities. The amount earned by the Fund for the year ended December 31, 2004, is reported parenthetically on the Statement of Operations. A portion of this amount, $257 represents compensation earned by the Fund from lending its securities to Goldman Sachs. For the year ended December 31, 2004, BGA earned $11,564 in fees as securities lending agent. At December 31, 2004, the Fund loaned securities having a market value of $8,164,890 collateralized by cash in the amount of $8,380,250. The Fund invests 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 of up to 0.10% of the average daily net assets of the Enhanced Portfolio. The Enhanced Portfolio invests in high quality money market instruments. The Fund bears the risk of incurring a loss from the investment of cash collateral due to either credit or market factors.

6. LINE OF CREDIT FACILITY

The Fund participates in a $350,000,000 committed, unsecured revolving line of credit facility. Under the most restrictive arrangement, the Fund must own securities having a market value in excess of 300% (400% prior to May 26, 2004) 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. This committed facility also requires a fee to be paid by the Fund based on the amount of the commitment that has not been utilized. During the year ended December 31, 2004, the Fund did not have any borrowings under this facility.

14

Notes to Financial Statements (continued)

December 31, 2004

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

7. ADDITIONAL TAX INFORMATION

The tax character of distributions paid during the fiscal years ended December 31, 2004 and December 31, 2003 were as follows:

	For the year ended December 31,
	2004		2003
Distributions paid from:
Ordinary income	$	5,358,837	$	1,302,647
Total taxable distributions	$	5,358,837	$	1,302,647

As of December 31, 2004, the components of accumulated earnings (losses) on a tax basis were as follows:

Undistributed ordinary income — net		$	61,872
Capital loss carryforward:*
	Expiring 2009		(14,471,666	)
	Expiring 2010		(27,610,289	)
	Expiring 2011		(2,163,043	)
Total capital loss carryforward			(44,244,998	)
Unrealized gains — net			52,680,649
	Total accumulated earnings — net	$	8,497,523

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

At December 31, 2004, the Fund’s aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes was as follows:

Tax cost	$	477,105,605
Gross unrealized gain		58,583,356
Gross unrealized loss		(5,902,707	)
Net unrealized security gain	$	52,680,649

The difference between book-basis and tax-basis unrealized gains (losses) is attributable primarily to wash sales, financial futures contracts and return of capital distributions from underlying securities.

8. CERTAIN RECLASSIFICATIONS

In order to present certain components of the Fund’s capital accounts on a tax basis, certain reclassifications have been recorded to the Fund’s accounts. The Fund reclassified $14,702 from paid-in capital to accumulated net realized loss on investment and futures transactions. This reclassification has no impact on the net asset value of the Fund. Reclassifications result primarily from the difference in the tax treatment of adjustments related to prior year merger activity.

9. 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 CORE U.S. Equity Fund of Protective Investment Company by the Fund. The acquisition was completed on December 19, 2003 following the approval of the Protective Fund shareholders on December 9, 2003.

15

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

9. MERGERS AND REORGANIZATIONS (continued)

     Pursuant to the Protective Agreement, the assets and liabilities of the Protective CORE U.S. Equity Fund were transferred to the Fund in a tax-free exchange for shares of the Fund as follows:

					Acquired Fund’s
	Exchanged Shares		Value of		Shares Outstanding
Survivor/Acquired Fund	of Survivor Issued		Exchanged Shares		as of December 19,2003
CORE U.S. Equity/ Protective CORE U.S. Equity		16,120,873	$	172,009,752		10,870,914

     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 Fund’s unrealized appreciation (depreciation) and capital loss carryforwards.

										Survivor Fund’s
	Survivor Fund’s		Acquired Fund’s		Acquired Fund’s					Aggregate Net
	Aggregate Net		Aggregate Net		Unrealized		Acquired Fund’s			Assets
	Assets before		Assets before		Appreciation/		Capital Loss			immediately
Survivor/Acquired Fund	acquisition		acquisition		(Depreciation)		Carryforward*			after acquisition
CORE U.S. Equity/ Protective CORE U.S. Equity	$	200,597,059	$	172,009,752	$	16,701,292	$	(44,043,207	)	$	372,606,811

*  For U.S. federal income tax purposes, certain limitations may apply to the utilization of the Acquired Fund’s capital loss carryforwards.

16

Report of Independent Registered Public Accounting Firm

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

We have audited the accompanying statement of assets and liabilities of Goldman Sachs CORE U.S. Equity Fund (one of the funds comprising the Goldman Sachs Variable Insurance Trust) (the “Fund”), including the statement of investments, as of December 31, 2004, and the related statement 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 five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (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 consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2004, by correspondence with the custodian and others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Goldman Sachs CORE U.S. Equity Fund at December 31, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York

February 9, 2005

17

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

Fund Expenses (Unaudited) — Six Month Period Ended December 31, 2004

          As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

          The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2004 through December 31, 2004.

          Actual Expenses — The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account for this period.

          Hypothetical Example for Comparison Purposes — The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

          Please note that the expenses shown in the table are meant to highlight your ongoing costs only. As a shareholder of the Fund, you do not incur any transaction costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. The second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds whose shareholders may incur transaction costs.

						Expenses Paid
						for the
	Beginning		Ending Account			6 months
	Account Value		Value			ended
	7/1/04		12/31/04			12/31/04*
Actual	$	1,000.00	$	1,083.00		$	3.88
Hypothetical 5% return		1,000.00		1,021.41	+		3.77

*  Expenses are calculated using the Fund’s annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended December 31, 2004. Expenses are calculated by multiplying the annualized expense ratio by the average account value for such period; then multiplying the result by the number of days in the most recent fiscal half year; and then dividing that result by the number of days in the calendar year. Expense ratios for the most recent fiscal half year may differ from expense ratios based on one-year data in the Financial Highlights. The annualized net expense ratio for the period was 0.74%.

+  Hypothetical expenses are based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses.

18

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

Trustees and Officers (Unaudited)

Independent Trustees

				Number of
		Term of		Portfolios in
	Position(s)	Office and		Fund Complex	Other
Name,	Held with	Length of	Principal Occupation(s)	Overseen by	Directorships
Address and Age1	the Trust2	Time Served3	During Past 5 Years	Trustee4	Held by Trustee5
Ashok N. Bakhru Age: 62	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, Scholarship 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) (2000-2003). Chairman of the Board and Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
John P. Coblentz, Jr. Age: 63	Trustee	Since 2003	Partner, Deloitte & Touche LLP (June 1975-May 2003). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Patrick T. Harker Age: 46	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Mary P. McPherson Age: 69	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Wilma J. Smelcer Age: 55	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-April 2004). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	Lawson Products Inc. (distributor of industrial products).
Richard P. Strubel Age: 65	Trustee	Since 1987	Vice Chairman and Director, Unext, Inc. (provider of educational services via the internet) (2003-Present); President, COO and Director, Unext, Inc. (1999-2003); 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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	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).

19

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

Trustees and Officers (Unaudited) (continued)

Interested Trustees

				Number of
		Term of		Portfolios in
	Position(s)	Office and		Fund Complex	Other
Name,	Held with	Length of	Principal Occupation(s)	Overseen by	Directorships
Address and Age1	the Trust2	Time Served3	During Past 5 Years	Trustee4	Held by Trustee5
*Alan A. Shuch Age: 55	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
*Kaysie P. Uniacke Age: 43	Trustee & President	Since 2001 Since 2002	Managing Director, GSAM (1997-Present). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies). President—Goldman Sachs Mutual Fund Complex (2002- Present) (registered investment companies). Assistant Secretary—Goldman Sachs Mutual Fund Complex (1997-2002) (registered investment companies).	63	None

*	These persons are considered to be “Interested Trustees” because they hold positions with Goldman Sachs and own securities issued by The Goldman Sachs Group, Inc. Each Interested Trustee holds comparable positions with certain other companies of which Goldman Sachs, GSAM or an affiliate thereof is the investment adviser, administrator and/or distributor.
1	Each Trustee may be contacted by writing to the Trustee, c/o Goldman Sachs, One New York Plaza, 37th 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, 2004, the Trust consisted of 57 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 of America): 1-800-292-4726

20

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

Officers of the Trust* (Unaudited)

		Term of
		Office and
	Position(s) Held	Length of
Name, Address And Age	With the Trust	Time Served1	Principal Occupation(s) 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).
James A. Fitzpatrick 4900 Sears Tower Chicago, IL 60606 Age: 44	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: 42	Vice President	Since 2001	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). Vice President—Goldman Sachs Mutual Fund Complex (registered investment companies). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies) (December 2002-May 2004).
John M. Perlowski 32 Old Slip New York, NY 10005 Age: 40	Treasurer	Since 1997	Managing Director, Goldman Sachs (November 2003-Present) and Vice President, Goldman Sachs (July 1995-November 2003). Treasurer—Goldman Sachs Mutual Fund Complex (registered investment companies).
Howard B. Surloff One New York Plaza 37th Floor New York, NY 10004 Age: 39	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 CORE^sm U.S. Equity Fund — Tax

Information (Unaudited)

For the year ended December 31, 2004, 100% of the dividends paid from net investment company taxable income by the Fund qualify for the dividends received deduction available to corporations.

21

Trustees and Officers (Unaudited) (continued)

TRUSTEES	OFFICERS
Ashok N. Bakhru, Chairman	Kaysie P. Uniacke, President
John P. Coblentz, Jr.	James A. Fitzpatrick, Vice President
Patrick T. Harker	James A. McNamara, Vice President
Mary Patterson McPherson	John M. Perlowski, Treasurer
Alan A. Shuch	Howard B. Surloff, Secretary
Wilma J. Smelcer
Richard P. Strubel
Kaysie P. Uniacke
GOLDMAN, SACHS & CO. Distributor and Transfer Agent
GOLDMAN SACHS ASSET MANAGEMENT, L.P. Investment Adviser
Visit our internet address: www.gs.com/funds to obtain the most recent month-end returns.
The reports concerning the Fund included in this shareholder report may contain certain forward-looking statements about the factors that may affect the performance of the Fund in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Fund, 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 Fund. 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.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (i) without charge, upon request by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders); and (ii) on the Securities and Exchange Commission Web site at http://www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“the Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the Commission’s website at http://www.sec.gov. The Fund’s Form N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Form N-Q may be obtained upon request and without charge by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders).
This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus for the Fund. Please consider the Fund’s objectives, risks and charges and expenses, and read the Prospectus carefully before investing.
Holdings are as of December 31, 2004 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 Fund is subject to the risk of rising and falling stock prices. In recent years, the U.S. stock market has experienced substantial price volatility.
COREsm is a service mark of Goldman, Sachs & Co.
	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: COREsm U.S. Equity Fund.
© Copyright 2005 Goldman, Sachs & Co. All rights reserved. Date of first use: February 18, 2005
VITCOREUSAR

Goldman

Sachs Variable Insurance Trust

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

CORE^SM Small Cap Equity Fund

Annual Report

December 31, 2004

 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, 2004.

Market Review

Value stocks outperformed their growth counterparts by a large margin in 2004, with the Russell 1000 Value Index returning 16.49% versus the Russell 1000 Growth Index return of 6.30%. Small-cap stocks also significantly outperformed large-cap stocks as the Russell 2000 Index and Russell 1000 Index returned 18.33% and 11.40%, respectively. This was largely due to small-cap Financials and Energy stocks outpacing their larger counterparts. The S&P 500 Index returned 10.88% over the one-year reporting period ended December 31, 2004, driven by strong returns towards the end of the year. Within the Index, the Energy (+31.6%) and Utilities (+24.7%) sectors experienced the largest absolute gains, while the top-weighted Financials sector (+10.9%) contributed most (weight times performance) for the period.

Investment Objective

The Fund seeks long-term growth of capital. The Fund seeks this objective through a broadly diversified portfolio of equity investments of U.S. issuers.

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2004*

		% of
Company	Business	Net Assets
Silicon Valley Bancshares	Banks		1.5	%
Veritas DGC, Inc.	Energy Equipment & Services		1.5
Stage Stores, Inc.	Specialty Retail		1.5
InfoSpace, Inc.	Internet Software & Services		1.5
Anixter International, Inc.	Electronic Equipment & Instruments		1.5
The Houston Exploration Co.	Oil & Gas		1.4
LandAmerica Financial Group, Inc.	Insurance		1.4
Websense, Inc.	Internet Software & Services		1.4
American Greetings Corp.	Household Durables		1.4
Cree, Inc.	Semiconductor Equipment & Products		1.4

* 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.

1

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

Performance Review

Over the one-year period that ended December 31, 2004, the Fund generated a cumulative total return of 16.33%. Over the same time period, the Fund’s benchmark, the Russell 2000 Index (with dividends reinvested) generated a cumulative total return of 18.33%.

As these absolute returns indicate, the small-cap equity market continued to rise throughout 2004. The Fund underperformed its benchmark for the period, for the following reasons: Although the CORE investment themes performed well in the broad equity universe, certain themes worked well among large-cap stocks but not among small-cap stocks during the fiscal year. For example, the Momentum and Earnings Quality themes were not successful for the Russell 2000 benchmark holdings.

Of the CORE themes, Earnings Quality and Valuation were the biggest positive contributors to the Fund’s relative returns, as companies with cash-based sources of earnings outperformed their industry counterparts. Profitability, Momentum and Analyst Sentiment also added value, while Management Impact was only slightly positive. To learn more about the CORE investment philosophy and themes, please refer to the Fund’s prospectus.

Stock selection was negative overall across sectors, and was least successful in the Consumer Discretionary and Information Technology sectors. The Fund’s holdings in the Consumer Staples sector outperformed their peers in the benchmark, but did not offset the losses felt elsewhere.

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 19, 2005

2

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

Shareholder Letter (continued)

SECTOR ALLOCATION AS OF DECEMBER 31, 2004†

Percentage of Portfolio Investments

† The Fund is actively managed and, as such, its composition may differ over time. The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value (excluding repurchase agreements, securities lending collateral and cash).

This Sector Allocation chart is provided for your reference. This new information has been included in response to recent rule and form amendments made by the Securities and Exchange Commission.

3

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

Performance Summary

December 31, 2004

The following graph shows the value as of December 31, 2004, 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. Performance also would have been reduced had expense limitations not been in effect. In addition to the investment adviser’s decisions regarding issuer/industry 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, 2004.

	Since Inception	Five Years	One Year
Average Annual Total Return Through December 31, 2004
CORE Small Cap Equity Fund (commenced February 13, 1998)	7.42%	8.95%	16.33%

4

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

Statement of Investments

December 31, 2004

Shares		Description	Value
Common Stocks – 99.7%
Aerospace & Defense – 0.8%
	6,600	Curtiss-Wright Corp.	$	378,906
	4,800	Kaman Corp.		60,720
	20,800	Orbital Sciences Corp.*		246,064
	22,100	United Industrial Corp.@		856,154
				1,541,844
Air Freight & Couriers – 0.1%
	6,300	EGL, Inc.*		188,307
Airlines – 0.8%
	42,100	Alaska Air Group, Inc.*		1,409,929
	15,100	Continental Airlines, Inc. Class B*		204,454
				1,614,383
Auto Components – 0.3%
	16,000	American Axle & Manufacturing Holdings, Inc.		490,560
Banks – 7.6%
	52,800	Bank of Hawaii Corp.		2,679,072
	6,800	Berkshire Hills Bancorp, Inc.		252,620
	7,400	Cathay General Bancorp.		277,500
	3,000	City National Corp.		211,950
	21,000	Corus Bankshares, Inc.		1,008,210
	8,000	CVB Financial Corp.		212,480
	19,300	East West Bancorp, Inc.		809,828
	6,000	First Bancorp.		381,060
	4,000	First Citizens Bancshares, Inc.		593,000
	2,500	First Financial Bankshares, Inc.		112,025
	14,700	Hancock Holding Co.		491,862
	7,500	Hanmi Financial Corp.		269,550
	10,600	Hibernia Corp.		312,806
	3,100	IBERIABANK Corp.		205,716
	8,700	Nara Bancorp, Inc.		185,049
	6,820	Oriental Financial Group, Inc.		193,074
	7,588	Pacific Capital Bancorp.		257,916
	30,200	PFF Bancorp, Inc.		1,399,166
	9,200	Provident Bankshares Corp.		334,604
	15,070	Republic Bancorp, Inc.		230,270
	66,300	Silicon Valley Bancshares*		2,971,566
	12,095	Texas Regional Bancshares, Inc.		395,265
	6,510	U.S.B. Holding Co., Inc.		162,099
	10,470	UMB Financial Corp.		593,230
	1,200	WSFS Financial Corp.		72,384
				14,612,302
Beverages – 0.1%
	10,300	The Boston Beer Co., Inc.*		219,081
Biotechnology – 5.4%
	21,200	Albany Molecular Research, Inc.*		236,168
	87,100	Applera Corp. - Celera Genomics Group*		1,197,625
	3,800	Cephalon, Inc.*		193,344
	14,800	Charles River Laboratories International, Inc.*		680,948
	98,800	Enzon Pharmaceuticals, Inc.*		1,355,536
	41,400	Gen-Probe, Inc.*		1,871,694
	57,100	Kos Pharmaceuticals, Inc.*@		2,149,244
	15,300	Maxygen, Inc.*		195,687
	53,600	United Therapeutics Corp.*		2,420,040
				10,300,286
Building Products – 1.6%
	27,400	Crane Co.		790,216
	25,750	Griffon Corp.*		695,250
	32,800	USG Corp.*@		1,320,856
	7,200	Watsco, Inc.		253,584
				3,059,906
Chemicals – 0.7%
	16,700	Arch Chemicals, Inc.		480,626
	30,200	NewMarket Corp.*		600,980
	5,200	The Lubrizol Corp.		191,672
				1,273,278
Commercial Services & Supplies – 3.5%
	46,600	Arbitron, Inc.*		1,825,788
	22,700	Century Business Services, Inc.*		98,972
	21,100	Coinstar, Inc.*		566,113
	24,800	Consolidated Graphics, Inc.*		1,138,320
	19,200	Convergys Corp.*		287,808
	15,100	Imagistics International, Inc.*		508,266
	10,700	ITT Educational Services, Inc.*		508,785
	6,600	NCO Group, Inc.*		170,610
	12,900	Pre-Paid Legal Services, Inc.@		484,395
	10,800	SOURCECORP, Inc.*		206,388
	43,400	Spherion Corp.*		364,560
	61,100	TeleTech Holdings, Inc.*		592,059
				6,752,064
Communications Equipment – 2.0%
	77,500	Aspect Communications Corp.*		863,350
	26,000	Audiovox Corp.*		410,280
	43,000	C-COR.net Corp.*		399,900
	110,300	CommScope, Inc.*		2,084,670
	45,000	Optical Communication Products, Inc.*		112,500
				3,870,700
Computers & Peripherals – 1.9%
	161,300	InFocus Corp.*		1,477,508
	41,400	Intergraph Corp.*		1,114,902
	50,800	Komag, Inc.*		954,024
				3,546,434
Construction & Engineering – 1.3%
	9,600	Granite Construction, Inc.		255,360
	42,700	Integrated Electrical Services, Inc.*		206,668
	51,500	Washington Group International, Inc.*		2,124,375
				2,586,403
Construction Materials – 0.5%
	14,200	Texas Industries, Inc.		885,796
Distributors – 1.4%
	55,100	Handleman Co.		1,183,548
	50,800	WESCO International, Inc.*		1,505,712
				2,689,260
Diversified Financials – 3.0%
	21,300	Advanta Corp. Class B		516,951
	30,500	CharterMac		745,420
	8,100	Commercial Capital Bancorp, Inc.		187,758

5      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)
Diversified Financials – (continued)
	60,000	CompuCredit Corp.*	$	1,640,400
	24,400	eSPEED, Inc.*		301,828
	23,200	Friedman, Billings, Ramsey Group, Inc.		449,848
	3,900	Gabelli Asset Management, Inc.@		189,228
	15,700	Jackson Hewitt Tax Service, Inc.		396,425
	26,800	Knight Trading Group, Inc.*		293,460
	40,100	World Acceptance Corp.*		1,103,151
				5,824,469
Diversified Telecommunication Services – 0.5%
	13,300	Commonwealth Telephone Enterprises, Inc.*		660,478
	8,900	Golden Telecom, Inc.		235,138
				895,616
Electric Utilities – 2.7%
	15,100	IDACORP, Inc.		461,607
	33,800	Northeast Utilities		637,130
	57,500	NRG Energy, Inc.*		2,072,875
	197,500	Sierra Pacific Resources*@		2,073,750
				5,245,362
Electrical Equipment – 0.8%
	31,800	Paxar Corp.*		705,006
	5,000	The Genlyte Group, Inc.*		428,400
	5,800	Woodward Governor Co.		415,338
				1,548,744
Electronic Equipment & Instruments – 3.5%
	78,400	Anixter International, Inc.		2,821,616
	17,500	Coherent, Inc.*		532,700
	12,800	CyberOptics Corp.*		190,336
	20,800	Ingram Micro, Inc.*		432,640
	15,900	Littelfuse, Inc.*		543,144
	38,200	MTS Systems Corp.		1,291,542
	20,000	Teledyne Technologies, Inc.*		588,600
	15,700	Vishay Intertechnology, Inc.*		235,814
				6,636,392
Energy Equipment & Services – 2.2%
	38,400	Universal Compression Holdings, Inc.*		1,340,544
	129,000	Veritas DGC, Inc.*		2,890,890
				4,231,434
Food & Drug Retailing – 2.1%
	11,301	Flowers Foods, Inc.		356,886
	28,300	Longs Drug Stores Corp.		780,231
	42,100	Nash-Finch Co.		1,589,696
	9,000	Performance Food Group Co.*		242,190
	73,600	Rite Aid Corp.*		269,376
	92,200	Terra Industries, Inc.*@		818,736
				4,057,115
Food Products – 1.8%
	11,400	American Italian Pasta Co.		265,050
	10,300	Corn Products International, Inc.		551,668
	4,000	J & J Snack Foods Corp.		196,120
	35,400	Pilgrim’s Pride Corp.		1,086,072
	40,900	USANA Health Sciences, Inc.*@		1,398,780
				3,497,690
Health Care Equipment & Supplies – 2.6%
	9,800	Advanced Medical Optics, Inc.*		403,172
	4,700	American Medical Systems Holdings, Inc.*		196,507
	29,700	Applera Corp. - Applied Biosystems Group		621,027
	3,300	Bio-Rad Laboratories, Inc.*		189,321
	3,800	Biosite, Inc.*@		233,852
	13,000	Dade Behring Holdings, Inc.*		728,000
	18,500	Haemonetics Corp.*		669,885
	7,100	Hologic, Inc.*		195,037
	47,400	Immucor, Inc.*		1,114,374
	6,600	Mentor Corp.		222,684
	17,300	Noven Pharmaceuticals, Inc.*		295,138
	10,700	Nutraceutical International Corp.*		164,887
				5,033,884
Health Care Providers & Services – 4.5%
	24,400	Apria Healthcare Group, Inc.*		803,980
	49,300	First Horizon Pharmaceutical Corp.*		1,128,477
	17,800	Genesis HealthCare Corp.*		623,534
	71,400	Kindred Healthcare, Inc.*		2,138,430
	10,700	RehabCare Group, Inc.*		299,493
	37,600	Sierra Health Services, Inc.*		2,072,136
	101,800	Stewart Enterprises, Inc.*		711,582
	18,800	Universal Health Services, Inc. Class B		836,600
				8,614,232
Hotels Restaurants & Leisure – 3.7%
	10,500	CEC Entertainment, Inc.*		419,685
	27,800	Choice Hotels International, Inc.		1,612,400
	31,400	CKE Restaurants, Inc.*		455,614
	41,600	Dave & Buster’s, Inc.*		840,320
	57,000	GTECH Holdings Corp.		1,479,150
	10,300	Jack in the Box, Inc.*		379,761
	11,800	Landry’s Restaurants, Inc.		342,908
	7,000	Lone Star Steakhouse & Saloon, Inc.		196,000
	42,100	Papa John’s International, Inc.*@		1,449,924
				7,175,762
Household Durables – 2.2%
	107,800	American Greetings Corp.		2,732,730
	32,000	Applica, Inc.*		193,600
	9,700	Ethan Allen Interiors, Inc.		388,194
	21,600	Kimball International, Inc. Class B		319,896
	22,500	La-Z-Boy, Inc.		345,825
	3,300	The Toro Co.		268,455
				4,248,700
Insurance – 3.6%
	6,200	Argonaut Group, Inc.*		131,006
	6,500	FBL Financial Group, Inc.		185,575
	50,900	LandAmerica Financial Group, Inc.		2,745,037
	1,300	National Western Life Insurance Co.*		216,593

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

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

Statement of Investments (continued)

December 31, 2004

Shares		Description	Value
Common Stocks – (continued)
Insurance – (continued)
	53,600	Stewart Information Services Corp.	$	2,232,440
	5,900	The Midland Co.		184,493
	23,700	Zenith National Insurance Corp.		1,181,208
				6,876,352
Internet & Catalog Retail – 1.0%
	62,600	Coldwater Creek, Inc.*		1,932,462
Internet Software & Services – 3.9%
	242,200	CMGI, Inc.*		617,610
	6,500	Digital River, Inc.*		270,465
	13,300	FileNET Corp.*		342,608
	59,400	InfoSpace, Inc.*		2,824,470
	7,600	McAfee, Inc.*		219,868
	26,300	Sohu.com, Inc.*		465,773
	54,000	Websense, Inc.*		2,738,880
				7,479,674
IT Consulting & Services – 1.4%
	41,100	Acxiom Corp.		1,080,930
	62,800	Agilysys, Inc.		1,076,392
	29,200	Keane, Inc.*		429,240
				2,586,562
Leisure Equipment & Products – 0.4%
	10,300	Arctic Cat, Inc.		273,156
	6,400	Polaris Industries, Inc.		435,328
				708,484
Machinery – 2.0%
	6,700	Albany International Corp.		235,572
	6,600	Applied Industrial Technologies, Inc.		180,840
	8,000	CIRCOR International, Inc.		185,280
	44,900	EnPro Industries, Inc.*		1,327,693
	10,300	NACCO Industries, Inc.		1,085,620
	11,000	Stewart & Stevenson Services, Inc.		222,530
	5,700	Tennant Co.		226,005
	11,300	Wabash National Corp.*		304,309
				3,767,849
Media – 1.1%
	35,400	Hearst-Argyle Television, Inc.		933,852
	12,500	Insight Communications Co., Inc.*		115,875
	13,100	Journal Communications, Inc.		236,717
	3,000	Pulitzer, Inc.		194,550
	10,700	The Liberty Corp.		470,372
	14,000	World Wrestling Entertainment, Inc.		169,820
				2,121,186
Metals & Mining – 4.6%
	41,500	Carpenter Technology Corp.		2,426,090
	8,100	Gibraltar Industries, Inc.		191,322
	39,900	Hecla Mining Co.*		232,617
	56,200	Metals USA, Inc.*		1,042,510
	20,400	Quanex Corp.		1,398,828
	26,100	RTI International Metals, Inc.*		536,094
	152,800	Ryerson Tull, Inc.		2,406,600
	67,900	USEC, Inc.		657,951
				8,892,012
Multiline Retail – 0.6%
	58,700	Shopko Stores, Inc.*		1,096,516
Oil & Gas – 1.9%
	8,600	Cimarex Energy Co.*		325,940
	4,800	Petroleum Development Corp.*		185,136
	5,400	Pogo Producing Co.		261,846
	49,300	The Houston Exploration Co.*		2,776,083
				3,549,005
Paper & Forest Products – 0.7%
	48,000	Louisiana-Pacific Corp.		1,283,520
Personal Products – 0.4%
	14,900	Mannatech, Inc.@		283,696
	21,200	Nu Skin Enterprises, Inc.		538,056
				821,752
Pharmaceuticals – 1.3%
	92,600	Alpharma, Inc.		1,569,570
	7,900	Par Pharmaceutical Cos., Inc.*		326,902
	37,400	Perrigo Co.		645,898
				2,542,370
Real Estate – 7.3%
	37,700	American Home Mortgage Investment Corp.		1,291,225
	9,800	Bedford Property Investors, Inc.		278,418
	16,400	Brookfield Homes Corp.		555,960
	69,700	Capstead Mortgage Corp.@		734,638
	41,600	Commercial Net Lease Realty		856,960
	59,400	Cousins Properties, Inc.		1,798,038
	26,200	Entertainment Properties Trust		1,167,210
	9,000	Glenborough Realty Trust, Inc.		191,520
	5,700	Healthcare Realty Trust, Inc.		231,990
	14,100	Heritage Property Investment Trust		452,469
	25,800	Highland Hospitality Corp.		289,992
	69,700	HRPT Properties Trust		894,251
	85,000	La Quinta Corp.*		772,650
	28,200	National Health Investors, Inc.		822,876
	8,100	Nationwide Health Properties, Inc.		192,375
	33,700	New Century Financial Corp.		2,153,767
	72,500	Senior Housing Properties Trust		1,373,150
				14,057,489
Road & Rail – 1.1%
	8,800	Covenant Transport, Inc.*		183,216
	48,600	Dollar Thrifty Automotive Group, Inc.*		1,467,720
	2,600	Landstar System, Inc.*		191,464
	13,300	Swift Transportation Co., Inc.*		285,684
				2,128,084
Semiconductor Equipment & Products – 3.2%
	123,900	Adaptec, Inc.*		940,401
	200,200	Atmel Corp.*		784,784
	67,300	Cree, Inc.*@		2,697,384
	30,300	OmniVision Technologies, Inc.*@		556,005
	47,000	Silicon Image, Inc.*		773,620
	16,900	Standard Microsystems Corp.*		301,327
				6,053,521

7      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)
Software – 2.8%
	15,000	ANSYS, Inc.*	$	480,900
	55,500	Cadence Design Systems, Inc.*		766,455
	9,900	Inter-Tel, Inc.		271,062
	14,900	Internet Security Systems, Inc.*		346,425
	12,000	QAD, Inc.		107,040
	105,000	SeaChange International, Inc.*@		1,831,200
	6,100	SPSS, Inc.*		95,404
	60,800	SS&C Technologies, Inc.		1,255,520
	15,500	Sybase, Inc.*		309,225
				5,463,231
Specialty Retail – 3.8%
	24,650	Brookstone, Inc.*		481,907
	14,500	Circuit City Stores, Inc.		226,780
	25,200	Goody’s Family Clothing, Inc.		230,328
	8,600	Linens ’n Things, Inc.*		213,280
	27,800	Lithia Motors, Inc.		745,596
	48,600	Movie Gallery, Inc.		926,802
	10,700	Sonic Automotive, Inc.		265,360
	68,200	Stage Stores, Inc.*		2,831,664
	16,900	The Sports Authority, Inc.*		435,175
	48,100	United Rentals, Inc.*		909,090
				7,265,982
Textiles & Apparel – 0.7%
	9,600	Brown Shoe Co., Inc.		286,368
	67,400	Skechers U.S.A., Inc.*		873,504
	7,300	Wolverine World Wide, Inc.		229,366
				1,389,238
Wireless Telecommunication Services – 0.3%
	15,000	Boston Communications Group, Inc.*		138,600
	4,800	EMS Technologies, Inc.*		79,776
	8,900	United States Cellular Corp.*		398,364
				616,740
TOTAL COMMON STOCKS
(Cost $166,018,225)			$	191,272,033

Securities Lending Collateral – 7.3%
	14,069,800	Boston Global Investment Trust - Enhanced Portfolio
(Cost $14,069,800)			$	14,069,800
TOTAL INVESTMENTS — 107.0%
(Cost $180,088,025)			$	205,341,833

*	Non-income producing security.
@	All or portion of security is on loan.

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

ADDITIONAL INVESTMENT INFORMATION

FUTURES CONTRACTS — At December 31, 2004, the following futures contracts were open as follows:

	Number of		Settlement		Market		Unrealized
Type	Contracts Long		Month		Value		Gain
Russell 2000 Index		8		March 2005	$	523,160	$	2,194

The accompanying notes are an integral part of these financial statements.       8

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

Statement of Assets and Liabilities

December 31, 2004

Assets:
Investment in securities, at value (identified cost $166,018,225)		$	191,272,033
Securities lending collateral, at value			14,069,800
Cash(a)			610,444
Receivables:
	Dividends		181,688
	Reimbursement from adviser		64,016
	Variation margin		27,336
	Fund shares sold		26,405
	Securities lending income		10,540
Total assets			206,262,262
Liabilities:
Payables:
	Payable upon return of securities loaned		14,069,800
	Amounts owed to affiliates		126,822
	Fund shares repurchased		118,612
Accrued expenses			125,725
Total liabilities			14,440,959
Net Assets:
Paid-in capital			159,355,478
Accumulated undistributed net investment income			19,700
Accumulated net realized gain on investment and futures transactions			7,190,123
Net unrealized gain on investments and futures transactions			25,256,002
NET ASSETS		$	191,821,303
Total shares of beneficial interest outstanding, par value $0.001 (unlimited shares authorized)			13,318,067
Net asset value, offering and redemption price per share		$	14.40

(a)  A portion represents restricted cash of $350,000 relating to initial margin requirements on futures transactions.

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

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

Statement of Operations

For the Year Ended December 31, 2004

Investment income:
Dividends(a)		$	1,735,464
Interest (including securities lending income of $141,899)			146,268
Total income			1,881,732
Expenses:
Management fees			1,353,485
Printing fees			141,595
Custody and accounting fees			114,870
Transfer agent fees			72,186
Professional fees			45,112
Trustee fees			14,439
Other			5,216
Total expenses			1,746,903
Less — expense reductions			(122,847	)
Net expenses			1,624,056
NET INVESTMENT INCOME			257,676
Realized and unrealized gain (loss) on investment and futures transactions:
Net realized gain (loss) from:
	Investment transactions		15,545,596
	Futures transactions		(63,767	)
	Net increase from payment by affiliates to reimburse certain brokerage commissions		32,935
Net change in unrealized gain on:
	Investments		11,799,446
	Futures		10,922
Net realized and unrealized gain on investment and futures transactions			27,325,132
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		$	27,582,808

(a)  Foreign taxes withheld on dividends were $1,382.

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

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

Statements of Changes in Net Assets

	For the			For the
	Year Ended			Year Ended
	December 31, 2004			December 31, 2003
From operations:
Net investment income	$	257,676		$	227,356
Net realized gain on investment and futures transactions		15,481,829			6,471,097
Net increase from payment by affiliates to reimburse certain brokerage commissions		32,935			—
Net change in unrealized gain on investments and futures transactions		11,810,368			16,297,633
Net increase in net assets resulting from operations		27,582,808			22,996,086
Distributions to shareholders:
From net investment income		(339,002	)		(137,156	)
From net realized gain		(8,690,421	)		(2,020,835	)
Total distributions to shareholders		(9,029,423	)		(2,157,991	)
From share transactions:
Proceeds from sales of shares		8,359,311			9,341,036
Proceeds in connection with merger		—			110,388,436
Reinvestment of dividends and distributions		9,029,423			2,157,991
Cost of shares repurchased		(25,886,127	)		(7,965,049	)
Net increase (decrease) in net assets resulting from share transactions		(8,497,393	)		113,922,414
TOTAL INCREASE		10,055,992			134,760,509
Net assets:
Beginning of year		181,765,311			47,004,802
End of year	$	191,821,303		$	181,765,311
Accumulated undistributed net investment income	$	19,700		$	94,148
Summary of share transactions:
Shares sold		616,586			819,502
Shares issued in connection with merger		—			8,651,130
Shares issued on reinvestment of dividends and distributions		629,223			171,678
Shares repurchased		(1,920,659	)		(762,948	)
NET INCREASE (DECREASE)		(674,850	)		8,879,362

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

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

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Year

			Income (loss) from																																	Ratios assuming no
			investment operations								Distributions to shareholders																									expense reductions
					Net																												Ratio of			Ratio of			Ratio of
	Net asset				realized									From			From						Net asset					Net assets		Ratio of			net investment			total			net investment
	value,		Net		and			Total from			From net			tax			net						value,					at end		net expenses			income			expenses			income			Portfolio
	beginning		investment		unrealized			investment			investment			return of			realized			Total			end of		Total			of year		to average			to average			to average			to average			turnover
	of year		income(b)		gain (loss)			operations			income			capital			gain			distributions			year		return(a)			(in 000s)		net assets			net assets			net assets			net assets			rate
For the Years Ended December 31,
2004	$	12.99	$	0.02	$	2.10		$	2.12		$	(0.03	)		—		$	(0.68	)	$	(0.71	)	$	14.40		16.33	%	$	191,821		0.90	%		0.14	%		0.97	%		0.07	%		146	%
2003		9.19		0.04		4.18			4.22			(0.03	)		—			(0.39	)		(0.42	)		12.99		46.00			181,765		1.03			0.40			1.25			0.18			141
2002		10.84		0.03		(1.65	)		(1.62	)		(0.03	)		—			—			(0.03	)		9.19		(14.97	)		47,005		1.04			0.25			1.29			0.00			128
2001		10.40		0.03		0.44			0.47			(0.02	)		(0.01	)		—			(0.03	)		10.84		4.53			54,365		1.00			0.32			1.22			0.10			105
2000		10.60		0.06		0.09			0.15			(0.04	)		—			(0.31	)		(0.35	)		10.40		1.75			40,561		0.99			0.59			1.55			0.03			91

(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.

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

12

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

Notes to Financial Statements

December 31, 2004

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 the Goldman Sachs CORE Small Cap Equity Fund (the “Fund”). The Fund is a diversified portfolio 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 Fund. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts. Actual results could differ from those estimates.

A. Investment Valuation — Investments in securities traded on a U.S. securities exchange or the NASDAQ system are valued daily at their last sale price 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. Investments in investment companies are valued at the net asset value per share on valuation date. 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 or deemed to be inaccurate by the investment adviser are valued at fair value using methods approved by the Trust’s Board of Trustees.

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 which are reduced by any amounts reclaimable by the Fund, where applicable. Interest income is recorded on the basis of interest accrued, premium amortized and discount accreted.

C. Federal Taxes — It is the Fund’s policy to comply with the requirements of the Internal Revenue Code (the “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 Federal income tax rules. Therefore, the source of the Fund’s distributions may be shown in the accompanying financial statements as either from net investment income or net realized gain on investment transactions, or from paid-in-capital.

     In addition, distributions paid by the Fund’s investments in real estate investment trusts (“REITs”) often include a “return of capital” which is recorded by the Fund as a reduction of the cost basis of the securities held. The Code requires a REIT to distribute at least 95% of its taxable income to investors. In many cases, however, because of “non-cash” expenses such as property depreciation, an equity REIT’s cash flow will exceed its taxable income. The REIT may distribute this excess cash to offer a more competitive yield. This portion of the distribution is deemed a return of capital, and is generally not taxable to shareholders.

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

E. Segregation Transactions — As set forth in the prospectus, the Fund may enter into certain derivative transactions to seek to increase total return. Forward foreign currency exchange contracts, futures contracts, written options, when-issued

13

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

2. SIGNIFICANT ACCOUNTING POLICIES — (continued)

securities and forward commitments represent examples of such transactions. As a result of entering into these transactions, the Fund is required to segregate liquid assets on the accounting records equal to or greater than the market value of the corresponding transactions.

F. 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 Fund, including accrued interest, is required to equal or exceed the value of the repurchase agreement, including accrued interest. If the seller defaults or becomes insolvent, realization of the collateral by the Fund may be delayed or limited and there may be a decline in the value of the collateral during the period while the Fund seeks to assert its rights. The underlying securities for all repurchase agreements are held in safekeeping at the Fund’s custodian or designated subcustodians under triparty repurchase agreements. Pursuant to exemptive relief granted by the Securities and Exchange Commission (“SEC”) and terms and conditions contained therein, the Fund, together with other registered investment companies having management agreements with Goldman Sachs Asset Management, L.P. (“GSAM”), or its affiliates, transfers uninvested cash into joint accounts, the daily aggregate balance of which is invested in one or more repurchase agreements.

G. Futures Contracts — The Fund 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 Fund is required to deposit with a broker, or the Fund’s custodian bank on behalf of the 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 Fund 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 Fund realizes a gain or loss which is reported in the Statement of Operations.

     The use of futures contracts involve, to varying degrees, elements of market and counterparty risk which may exceed the amounts recognized in the Statement 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 Fund’s strategies and potentially result in a loss.

3. AGREEMENTS

GSAM, an affiliate of Goldman, Sachs & Co. (“Goldman Sachs”), serves as investment adviser pursuant to an Investment Management Agreement (the “Agreement”) with the Trust on behalf of the Fund. Under this Agreement, GSAM manages the Fund, subject to the general supervision of the Trust’s Board of Trustees.

     As compensation for the services rendered pursuant to the Agreement, the assumption of the expenses related thereto and administering the Fund’s business affairs, including providing facilities, GSAM is entitled to a fee (“Management Fee”) computed daily and payable monthly, at an annual rate equal to 0.75% of the average daily net assets of the Fund.

     GSAM has voluntarily agreed to limit certain “Other Expenses” of the Fund (excluding Management Fees, Transfer Agent fees and expenses, taxes, interest, brokerage fees, litigation and indemnification costs, shareholder meeting and other extraordinary expenses) to the extent that such expenses exceed, on an annual basis, 0.11% of the average daily net assets of the Fund. GSAM has agreed to maintain this expense limitation reductions through June 30, 2005. Such expense reimbursement, if any, is computed daily and paid monthly. In addition, the Fund is not obligated to reimburse GSAM for prior fiscal year expense reimbursements, if any.

     For the year ended December 31, 2004, the Fund’s investment adviser has voluntarily agreed to reimburse approximately $123,000 for certain expenses. In addition, the Fund has entered into certain offset arrangements with the custodian resulting

14

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

Notes to Financial Statements (continued)

December 31, 2004

3. AGREEMENTS — (continued)

in a reduction in the Fund’s expenses. For the year ended December 31, 2004, custody fees were reduced by approximately $100.

     Goldman Sachs also serves as the transfer agent of the Fund for a fee. The 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 the Fund. Goldman Sachs serves as the distributor of the Fund’s shares at no cost to the Fund.

     At December 31, 2004, the amounts owed to affiliates were approximately $120,400 and $6,400 for Management and Transfer Agent fees, respectively.

4. PORTFOLIO SECURITIES TRANSACTIONS

The cost of purchases and proceeds of sales and maturities of long term securities for the year ended December 31, 2004, were $265,010,130 and $281,234,777, respectively. For the year ended December 31, 2004, Goldman Sachs earned approximately $1,200 of brokerage commissions from portfolio transactions, including futures transactions, executed on behalf of the Fund.

     GSAM voluntarily made a one-time reimbursement of approximately $38,000 to the Fund for certain brokerage commissions, including interest, paid by the Fund over the course of several years.

5. SECURITIES LENDING

Pursuant to exemptive relief granted by the SEC and the terms and conditions contained therein, the Fund may lend its securities through its securities lending agent, Boston Global Advisers (“BGA”) — a wholly owned subsidiary of Goldman Sachs, to certain qualified borrowers including Goldman Sachs. In accordance with the Fund’s securities lending procedures, 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 Fund bears the risk of delay on recovery or loss of rights in the collateral should the borrower of the securities fail financially.

     Both the Fund and BGA receive compensation relating to the lending of the Fund’s securities. The amount earned by the Fund for the year ended December 31, 2004, is reported parenthetically on the Statement of Operations. A portion of this amount, $33,648, represents compensation earned by the Fund from lending its securities to Goldman Sachs. For the year ended December 31, 2004, BGA earned $25,038 in fees as securities lending agent. At December 31, 2004, the Fund loaned securities having a market value of $13,649,496 collateralized by cash in the amount of $14,069,800. The Fund invests 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 of up to 0.10% of the average daily net assets of the Enhanced Portfolio. The Enhanced Portfolio invests in high quality money market instruments. The Fund bears the risk of incurring a loss from the investment of cash collateral due to either credit or market factors. At December 31, 2004, the amount payable to Goldman Sachs upon return of securities loaned is $2,225,450.

15

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

6. LINE OF CREDIT FACILITY

The Fund participates in a $350,000,000 committed, unsecured revolving line of credit facility. Under the most restrictive arrangement, the Fund must own securities having a market value in excess of 300% (400% prior to May 26, 2004) 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. This committed facility also requires a fee to be paid by the Fund based on the amount of the commitment that has not been utilized. During the year ended December 31, 2004, the Fund did not have any borrowings under this facility.

7. ADDITIONAL TAX INFORMATION

The tax character of distributions paid during the fiscal years ended December 31, 2004 and December 31, 2003 were as follows:

	For the year ended December 31,
	2004		2003
Distributions paid from:
Ordinary income	$	2,262,135	$	852,662
Net long-term capital gains		6,767,288		1,305,329
Total taxable distributions	$	9,029,423	$	2,157,991

As of December 31, 2004, the components of accumulated earnings on a tax basis were as follows:

Undistributed ordinary income — net	$	4,324,438
Undistributed long-term capital gains		3,039,377
Total undistributed earnings	$	7,363,815
Timing differences (related to the recognition of certain REIT dividends for tax purposes)		19,700
Unrealized gains — net		25,082,310
Total accumulated earnings — net	$	32,465,825

At December 31, 2004, the Fund’s aggregate security unrealized gains and losses based on a cost for U.S. federal income tax purposes was as follows:

Tax cost	$	180,259,523
Gross unrealized gain		27,424,417
Gross unrealized loss		(2,342,107	)
Net unrealized security gain	$	25,082,310

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

16

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

Notes to Financial Statements (continued)

December 31, 2004

8. CERTAIN RECLASSIFICATIONS

In order to present certain components of the Fund’s capital accounts on a tax basis, certain reclassifications have been recorded to the Fund’s accounts. The Fund reclassified $6,878 from accumulated net realized gain on investment and futures transactions to accumulated undistributed net investment income. This reclassification has no impact on the net asset value of the Fund. Reclassifications result primarily from the difference in the tax treatment of dividend redesignations.

9. 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 Small Cap Value Fund of Protective Investment Company by the Fund. The acquisition was completed on December 19, 2003 following the approval of the Protective Fund shareholders on December 9, 2003.

     Pursuant to the Protective Agreement, the assets and liabilities of the Protective Small Cap Value Fund were transferred to the Fund in a tax-free exchange for shares of the Fund as follows:

					Acquired Fund’s
					Shares Outstanding
	Exchanged Shares		Value of		as of December 19,
Survivor/Acquired Fund	of Survivor Issued		Exchanged Shares		2003
CORE Small Cap Equity/ Protective Small Cap Value		8,651,130	$	110,388,436		10,265,148

The following chart shows the Survivor Fund’s and Acquired Fund’s aggregate net assets (immediately before and after the completion of the acquisition).

					Survivor Fund’s
	Survivor Fund’s		Acquired Fund’s		Aggregate Net
	Aggregate Net		Aggregate Net		Assets
	Assets before		Assets before		immediately
Survivor/Acquired Fund	acquisition		acquisition		after acquisition
CORE Small Cap Equity/ Protective Small Cap Value	$	68,670,034	$	110,388,436	$	179,058,470

17

Report of Independent Registered Public Accounting Firm

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

We have audited the accompanying statement of assets and liabilities of Goldman Sachs CORE Small Cap Equity Fund (one of the funds comprising the Goldman Sachs Variable Insurance Trust) (the “Fund”), including the statement of investments, as of December 31, 2004, and the related statement 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 five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (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 consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2004, by correspondence with the custodian and others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Goldman Sachs CORE Small Cap Equity Fund at December 31, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York

February 9, 2005

18

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

Fund Expenses (Unaudited) — Six Month Period Ended December 31, 2004

          As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

          The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2004 through December 31, 2004.

          Actual Expenses — The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account for this period.

          Hypothetical Example for Comparison Purposes — The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

          Please note that the expenses shown in the table are meant to highlight your ongoing costs only. As a shareholder of the Fund, you do not incur any transaction costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. The second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds whose shareholders may incur transaction costs.

						Expenses Paid for the
	Beginning Account Value		Ending Account Value			6 months ended
	7/1/04		12/31/04			12/31/04*
Actual	$	1,000	$	1,097.40		$	4.81
Hypothetical 5% return		1,000		1,020.55	+		4.63

*  Expenses are calculated using the Fund’s annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended December 31, 2004. Expenses are calculated by multiplying the annualized expense ratio by the average account value for such period; then multiplying the result by the number of days in the most recent fiscal half year; and then dividing that result by the number of days in the fiscal year. Expense ratios for the most recent fiscal half year may differ from expense ratios based on one-year data in the Financial Highlights. The annualized net expense ratio for the period was 0.87%.

+  Hypothetical expenses are based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses.

19

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

Trustees and Officers (Unaudited)

Independent Trustees

				Number of
		Term of		Portfolios in
	Position(s)	Office and		Fund Complex	Other
Name,	Held with	Length of	Principal Occupation(s)	Overseen by	Directorships
Address and Age1	the Trust2	Time Served3	During Past 5 Years	Trustee4	Held by Trustee5
Ashok N. Bakhru Age: 62	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, Scholarship 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) (2000-2003). Chairman of the Board and Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
John P. Coblentz, Jr. Age: 63	Trustee	Since 2003	Partner, Deloitte & Touche LLP (June 1975-May 2003). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Patrick T. Harker Age: 46	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Mary P. McPherson Age: 69	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Wilma J. Smelcer Age: 55	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-April 2004). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	Lawson Products Inc. (distributor of industrial products).
Richard P. Strubel Age: 65	Trustee	Since 1987	Vice Chairman and Director, Unext, Inc. (provider of educational services via the internet) (2003-Present); President, COO and Director, Unext, Inc. (1999-2003); 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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	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).

20

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

Trustees and Officers (Unaudited) (continued)

Interested Trustees

				Number of
		Term of		Portfolios in
	Position(s)	Office and		Fund Complex	Other
Name,	Held with	Length of	Principal Occupation(s)	Overseen by	Directorships
Address and Age1	the Trust2	Time Served3	During Past 5 Years	Trustee4	Held by Trustee5
*Alan A. Shuch Age: 55	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
*Kaysie P. Uniacke Age: 43	Trustee & President	Since 2001 Since 2002	Managing Director, GSAM (1997-Present). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies). President—Goldman Sachs Mutual Fund Complex (2002- Present) (registered investment companies). Assistant Secretary—Goldman Sachs Mutual Fund Complex (1997-2002) (registered investment companies).	63	None

*	These persons are considered to be “Interested Trustees” because they hold positions with Goldman Sachs and own securities issued by The Goldman Sachs Group, Inc. Each Interested Trustee holds comparable positions with certain other companies of which Goldman Sachs, GSAM or an affiliate thereof is the investment adviser, administrator and/or distributor.
1	Each Trustee may be contacted by writing to the Trustee, c/o Goldman Sachs, One New York Plaza, 37th 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, 2004, the Trust consisted of 57 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 of America): 1-800-292-4726

21

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

Officers of the Trust* (Unaudited)

		Term of
		Office and
	Position(s) Held	Length of
Name, Address And Age	With the Trust	Time Served1	Principal Occupation(s) 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).
James A. Fitzpatrick 4900 Sears Tower Chicago, IL 60606 Age: 44	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: 42	Vice President	Since 2001	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). Vice President—Goldman Sachs Mutual Fund Complex (registered investment companies). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies) (December 2002-May 2004).
John M. Perlowski 32 Old Slip New York, NY 10005 Age: 40	Treasurer	Since 1997	Managing Director, Goldman Sachs (November 2003-Present) and Vice President, Goldman Sachs (July 1995-November 2003). Treasurer—Goldman Sachs Mutual Fund Complex (registered investment companies).
Howard B. Surloff One New York Plaza 37th Floor New York, NY 10004 Age: 39	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 CORE^sm Small Cap Equity Fund — Tax Information (Unaudited)

For the year ended December 31, 2004, 43.85% of the dividends paid from net investment company taxable income by the Fund qualify for the dividends received deduction available to corporations.

Pursuant to Section 852 of the Internal Revenue Code, the Fund designates $6,767,288 as capital gain dividends paid during the year ended December 31, 2004.

22

TRUSTEES	OFFICERS
Ashok N. Bakhru, Chairman	Kaysie P. Uniacke, President
John P. Coblentz, Jr.	James A. Fitzpatrick, Vice President
Patrick T. Harker	James A. McNamara, Vice President
Mary Patterson McPherson	John M. Perlowski, Treasurer
Alan A. Shuch	Howard B. Surloff, Secretary
Wilma J. Smelcer
Richard P. Strubel
Kaysie P. Uniacke
GOLDMAN, SACHS & CO. Distributor and Transfer Agent
GOLDMAN SACHS ASSET MANAGEMENT, L.P. Investment Adviser
Visit our internet address: www.gs.com/funds to obtain the most recent month-end returns.
The reports concerning the Fund included in this shareholder report may contain certain forward-looking statements about the factors that may affect the performance of the Fund in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Fund, 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 Fund. 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.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (i) without charge, upon request by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders); and (ii) on the Securities and Exchange Commission Web site at http://www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“the Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the Commission’s website at http://www.sec.gov. The Fund’s Form N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Form N-Q may be obtained upon request and without charge by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders).
This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus for the Fund. Please consider the Fund’s objectives, risks and charges and expenses, and read the Prospectus carefully before investing.
Holdings are as of December 31, 2004 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 Fund is subject to the risk of rising and falling stock prices. In recent years, the U.S. stock market has experienced substantial price volatility.
Stocks of smaller companies are often more volatile and present greater risks than stocks of larger companies. At times, the Goldman Sachs Variable Insurance Trust CORESM Small Cap Equity Fund may be unable to sell certain of its portfolio securities without a substantial drop in price, if at all.
COREsm is a service mark of Goldman, Sachs & Co.
	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: COREsm Small Cap Equity Fund.
© Copyright 2005 Goldman, Sachs & Co. All rights reserved. Date of first use: February 18, 2005
VTTCORESCAR

Goldman

Sachs Variable Insurance Trust

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

Capital Growth Fund

Annual Report

December 31, 2004

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, 2004.

Market Review

Following strong U.S. equity market performance in 2003, the major indices traded in a relatively narrow range until the end of October 2004 when the markets rallied sharply. A major catalyst for the appreciation was the removal of uncertainty surrounding the presidential election. Oil prices were a focal point throughout the year. Although it was volatile, the price of oil ultimately retreated from its record highs and provided a stimulus to the markets late in the year. The U.S. dollar’s weakness captured headlines, as it continued to trade at or near record lows versus the euro. Leading the markets this year were economically sensitive and commodity-based businesses. As such, the strongest performing sectors were Energy, Utilities, and Cyclicals.

Investment Objective

The Fund seeks long-term growth of capital.

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2004*

		% of
Company	Business	Net Assets
Microsoft Corp.	Computer Software		4.4	%
QUALCOMM, Inc.	Semiconductors/Semiconductor Capital Equipment		3.6
Dell, Inc.	Computer Hardware		3.3
PepsiCo, Inc.	Beverages		3.3
Fannie Mae	Financials		3.3
Pfizer, Inc.	Drugs & Medicine		3.2
The McGraw-Hill Cos., Inc.	Commercial Services		3.1
Wal-Mart Stores, Inc.	Retailing		3.1
Viacom, Inc. Class B	Movies & Entertainment		2.9
Freddie Mac	Financials		2.7

* Opinions expressed in this report represent our present opinions only. Reference to individual securities should not be construed as a commitment that such securities will be retained in the Fund. From time to time, the Fund may change the individual securities it holds, the number or types of securities held and the markets in which it invests. 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.

1

 GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Shareholder Letter (continued)

Performance Review

Over the one-year period that ended December 31, 2004, the Fund generated a cumulative total return of 9.09%. Over the same time period, the Fund’s benchmark, the Russell 1000 Growth Index (with dividends reinvested) generated a cumulative total return of 6.30%.

The stocks of certain Technology companies in the portfolio generally performed well during the fiscal year. Contributors to performance included QUALCOMM, Inc., Dell, Inc., Microsoft Corp., Yahoo!, Inc., and eBay, Inc. The portfolio’s Consumer Staples holdings, PepsiCo, Inc., Avon Products, Inc., and Wm. Wrigley Jr. Co. were also top contributors to performance. After sustaining a difficult 2003, the portfolio’s consumer businesses were up sharply in 2004. While investors focused primarily on more-speculative companies in 2003, consumer businesses lagged due to the rotation away from their area of the market. During this period, we maintained our conviction in these consumer businesses and added to the portfolio’s positions on attractive valuations.

The portfolio’s exposure to the Media sector detracted from performance during the year. Clear Channel Communications, Inc. and Viacom, Inc. were disappointments, as companies exposed to the radio market underperformed. Local radio continued to perform reasonably well, growing revenues by a low single-digit rate over the year. In fact, local radio revenues were flat or up every month in 2004. However, national radio struggled as automotive, retailers, and telecommunications companies spent less money in 2004 in comparison to 2003. This was partially due to structural issues, such as poor automotive sales, but also due to economic reasons, as national advertising tends to be more cyclical.

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

Goldman Sachs Growth Equity Management Team

January 19, 2005

2

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND 

SECTOR ALLOCATION AS OF DECEMBER 31, 2004†

Percentage of Portfolio Investments

† The Fund is actively managed and, as such, its composition may differ over time. The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value (excluding repurchase agreements, securities lending collateral and cash).

This Sector Allocation chart is provided for your reference. This new information has been included in response to recent rule and form amendments made by the Securities and Exchange Commission.

3

 GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Performance Summary

December 31, 2004

The following graph shows the value as of December 31, 2004, of a $10,000 investment made on April 30, 1998 (commencement of operations). For comparative purposes, the performance of the Fund’s benchmark, the Russell 1000 Growth 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. Performance also would have been reduced had expense limitations not been in effect. In addition to the investment adviser’s decisions regarding issuer/industry 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, 2004.

	Since Inception	Five Years	One Year
Average Annual Total Return Through December 31, 2004
Capital Growth Fund (commenced April 30, 1998)	2.24%	-4.26%	9.09%

4

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND 

Statement of Investments

December 31, 2004

Shares		Description	Value
Common Stocks – 98.7%
Banks – 1.6%
	22,116	Citigroup, Inc.	$	1,065,549
	47,602	JPMorgan Chase & Co.		1,856,954
				2,922,503
Beverages – 3.9%
	118,960	PepsiCo, Inc.		6,209,712
	28,065	The Coca-Cola Co.		1,168,346
				7,378,058
Biotechnology – 2.4%
	69,420	Amgen, Inc.*		4,453,293
Broadcasting & Cable/ Satellite TV – 2.6%
	34,788	Clear Channel Communications, Inc.		1,165,050
	69,750	Univision Communications, Inc.*		2,041,583
	61,600	Westwood One, Inc.*		1,658,888
				4,865,521
Commercial Services – 4.5%
	28,645	Moody’s Corp.		2,487,818
	64,190	The McGraw-Hill Cos., Inc.		5,875,953
				8,363,771
Computer Hardware – 3.3%
	147,565	Dell, Inc.*		6,218,389
Computer Services – 1.9%
	85,200	First Data Corp.		3,624,408
Computer Software – 5.3%
	28,775	Electronic Arts, Inc.*		1,774,842
	307,065	Microsoft Corp.		8,201,706
				9,976,548
Drugs & Medicine – 6.7%
	25,740	Eli Lilly & Co.		1,460,745
	222,270	Pfizer, Inc.		5,976,840
	45,670	Schering-Plough Corp.		953,590
	96,095	Wyeth		4,092,686
				12,483,861
Electrical Equipment – 2.8%
	44,950	General Electric Co.		1,640,675
	99,150	Tyco International Ltd.		3,543,621
				5,184,296
Financials – 11.2%
	86,750	Fannie Mae		6,177,467
	69,465	Freddie Mac		5,119,570
	16,630	Golden West Financial Corp.		1,021,415
	141,750	MBNA Corp.		3,995,933
	23,235	Merrill Lynch & Co., Inc.		1,388,756
	25,345	Morgan Stanley		1,407,154
	155,350	The Charles Schwab Corp.		1,857,986
				20,968,281
Foods – 1.8%
	47,290	Wm. Wrigley Jr. Co.		3,271,995
Gaming/ Lodging – 5.6%
	8,300	Carnival Corp.		478,329
	61,800	GTECH Holdings Corp.		1,603,710
	51,120	Harrah’s Entertainment, Inc.		3,419,417
	7,230	Las Vegas Sands Corp.*		347,040
	35,480	Marriott International, Inc.		2,234,530
	39,390	Starwood Hotels & Resorts Worldwide, Inc.		2,300,376
				10,383,402
Household/ Personal Care – 4.9%
	89,500	Avon Products, Inc.		3,463,650
	15,545	Colgate-Palmolive Co.		795,282
	23,521	Energizer Holdings, Inc.*		1,168,759
	66,070	The Procter & Gamble Co.		3,639,136
				9,066,827
Insurance – 1.3%
	13,000	AMBAC Financial Group, Inc.		1,067,690
	32,300	Willis Group Holdings Ltd.		1,329,791
				2,397,481
Internet and Online – 3.7%
	27,780	CheckFree Corp.*		1,057,863
	21,640	eBay, Inc.*		2,516,299
	13,650	Google, Inc.*@		2,635,815
	18,200	Yahoo!, Inc.*		685,776
				6,895,753
Manufacturing – 0.7%
	15,355	3M Co.		1,260,185
Medical Products – 2.1%
	53,860	Medtronic, Inc.		2,675,226
	29,200	St. Jude Medical, Inc.*		1,224,356
				3,899,582
Movies & Entertainment – 5.9%
	231,010	Time Warner, Inc.*		4,490,834
	92,700	Liberty Media Corp. Series A*		1,017,846
	149,018	Viacom, Inc. Class B		5,422,765
				10,931,445
Networking Telecom Equipment – 1.7%
	165,000	Cisco Systems, Inc.*		3,184,500
Oil & Gas – 0.6%
	20,692	Exxon Mobil Corp.		1,060,672
Other Consumer Discretionary – 1.8%
	147,915	Cendant Corp.		3,458,253
Other Health Care – 1.9%
	91,795	Caremark Rx, Inc.*		3,619,477
Publishing – 4.0%
	23,260	Gannett Co., Inc.		1,900,342
	67,915	Lamar Advertising Co.*		2,905,404
	39,570	The E.W. Scripps Co.		1,910,439
	21,610	Valassis Communications, Inc.*		756,566
				7,472,751
Retailing – 7.9%
	34,955	Dollar Tree Stores, Inc.*		1,002,509
	77,665	Family Dollar Stores, Inc.		2,425,478
	72,100	Lowe’s Companies, Inc.		4,152,239

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

 GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Statement of Investments (continued)

December 31, 2004

Shares		Description	Value
Common Stocks – (continued)
Retailing – (continued)
	32,600	PETCO Animal Supplies, Inc.*	$	1,287,048
	110,670	Wal-Mart Stores, Inc.		5,845,590
				14,712,864
Semiconductors/ Semiconductor Capital Equipment – 6.5%
	52,670	Intel Corp.		1,231,951
	108,680	Linear Technology Corp.		4,212,437
	159,950	QUALCOMM, Inc.		6,781,880
				12,226,268
Telecommunications – 2.1%
	73,300	American Tower Corp.*		1,348,720
	77,490	Crown Castle International Corp.*		1,289,434
	21,580	Nextel Communications, Inc.*		647,400
	25,790	Sprint Corp.		640,881
				3,926,435
TOTAL COMMON STOCKS
(Cost $168,882,105)			$	184,206,819

Principal		Interest			Maturity
Amount		Rate			Date
							Value
Repurchase Agreement – 1.4%
Joint Repurchase Agreement Account II^
$	2,600,000		2.28	%		01/03/2005
Maturity Value  $2,600,494
(Cost $2,600,000)							$	2,600,000
TOTAL INVESTMENTS BEFORE SECURITIES
LENDING COLLATERAL
(Cost $171,482,105)							$	186,806,819

Shares		Description	Value
Securities Lending Collateral – 1.3%
	2,421,000	Boston Global Investment Trust – Enhanced Portfolio
(Cost $2,421,000)			$	2,421,000
TOTAL INVESTMENTS – 101.4%
(Cost $173,903,105)			$	189,227,819

*	Non-income producing security.
@	All or a portion of security is on loan.
^	Joint repurchase agreement was entered into on December 31, 2004.

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 CAPITAL GROWTH FUND 

ADDITIONAL INVESTMENT INFORMATION

JOINT REPURCHASE AGREEMENT ACCOUNT II* — At December 31, 2004, the Capital Growth Fund had an undivided interest in the following Joint Repurchase Agreement Account II which equaled $2,600,000 in principal amount.

	Principal		Interest			Maturity	Maturity
Repurchase Agreements	Amount		Rate			Date	Value
Barclays Capital PLC	$	350,000,000		2.28	%	01/03/2005	$	350,066,500
Barclays Capital PLC		400,000,000		2.30		01/03/2005		400,076,667
Bear Stearns & Co.		500,000,000		2.29		01/03/2005		500,095,417
Greenwich Capital Markets		400,000,000		2.28		01/03/2005		400,076,000
J.P. Morgan Chase & Co.		364,100,000		2.28		01/03/2005		364,169,179
Morgan Stanley & Co.		300,000,000		2.27		01/03/2005		300,056,750
UBS LLC		500,000,000		2.26		01/03/2005		500,094,166
UBS LLC		250,000,000		2.28		01/03/2005		250,047,500
Westdeutsche Landesbank AG		400,000,000		2.28		01/03/2005		400,076,000
TOTAL	$	3,464,100,000					$	3,464,758,179

*  At December 31, 2004, the Joint Repurchase Agreement Account II was fully collateralized by Federal Home Loan Bank, 0.00% to 4.52%, due 03/30/2006 to 08/10/2010; Federal Home Loan Mortgage Association, 0.00% to 11.75%, due 02/01/2005 to 11/01/2035; Federal National Mortgage Association, 0.00% to 11.00%, due 12/15/2005 to 01/01/2035 and Government National Mortgage Association, 6.00%, due 12/15/2033.

The accompanying notes are an integral part of these financial statements.       7

 GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Statement of Assets and Liabilities

December 31, 2004

Assets:
Investment in securities, at value (identified cost $171,482,105)		$	186,806,819
Securities lending collateral, at value			2,421,000
Cash			12,482
Receivables:
	Dividends and interest		159,722
	Fund shares sold		95,398
	Securities lending income		442
Total assets			189,495,863
Liabilities:
Payables:
	Payable upon return of securities loaned		2,421,000
	Fund shares repurchased		146,451
	Amounts owed to affiliates		123,167
Accrued expenses			117,540
Total liabilities			2,808,158
Net Assets:
Paid-in capital			201,497,208
Accumulated net realized loss on investment transactions			(30,134,217	)
Net unrealized gain on investments			15,324,714
NET ASSETS		$	186,687,705
Total shares of beneficial interest outstanding, par value $0.001 (unlimited shares authorized)			17,962,393
Net asset value, offering and redemption price per share		$	10.39

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND 

Statement of Operations

For the Year Ended December 31, 2004

Investment income:
Dividends	$	2,771,331
Interest (including securities lending income of $2,040)		30,514
Total income		2,801,845
Expenses:
Management fees		1,333,178
Transfer agent fees		71,103
Printing fees		56,286
Custody and accounting fees		56,814
Professional fees		34,866
Trustee fees		14,439
Other		11,344
Total expenses		1,578,030
Less — expense reductions		(565	)
Net expenses		1,577,465
NET INVESTMENT INCOME		1,224,380
Realized and unrealized gain on investment transactions:
Net realized gain on investment transactions		1,083,044
Net increase from payment by affiliates to reimburse certain brokerage commissions		665
Net change in unrealized gain on investments		13,497,200
Net realized and unrealized gain on investment transactions		14,580,909
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	15,805,289

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

 GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Statements of Changes in Net Assets

	For the			For the
	Year Ended			Year Ended
	December 31, 2004			December 31, 2003
From operations:
Net investment income	$	1,224,380		$	100,912
Net realized gain (loss) on investment transactions		1,083,044			(788,467	)
Net increase from payment by affiliates to reimburse certain brokerage commissions		665			—
Net change in unrealized gain on investments		13,497,200			8,924,917
Net increase in net assets resulting from operations		15,805,289			8,237,362
Distributions to shareholders:
From net investment income		(1,269,081	)		(67,672	)
From share transactions:
Proceeds from sales of shares		16,794,368			9,098,379
Proceeds in connection with merger		—			148,549,781
Reinvestment of dividends and distributions		1,269,081			67,672
Cost of shares repurchased		(25,605,992	)		(4,243,477	)
Net increase (decrease) in net assets resulting from share transactions		(7,542,543	)		153,472,355
TOTAL INCREASE		6,993,665			161,642,045
Net assets:
Beginning of year		179,694,040			18,051,995
End of year	$	186,687,705		$	179,694,040
Accumulated undistributed net investment income	$	—		$	33,372
Summary of share transactions:
Shares sold		1,723,683			1,076,571
Shares issued in connection with merger		—			15,836,851
Shares issued on reinvestment of dividends and distributions		122,973			7,307
Shares repurchased		(2,631,519	)		(497,754	)
NET INCREASE (DECREASE)		(784,863	)		16,422,975

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

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND 

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Year

			Income (loss) from																														Ratios assuming no
			investment operations								Distributions to shareholders																						expense reductions
																														Ratio of
					Net																				Net		Ratio of			net			Ratio of			Ratio of net
	Net asset				realized									From						Net asset					assets		net			investment			total			investment
	value,		Net		and			Total from			From net			net						value,					at end		expenses			income			expenses			income (loss)			Portfolio
	beginning		investment		unrealized			investment			investment			realized			Total			end of		Total			of year		to average			to average			to average			to average			turnover
	of year		income(b)		gain (loss)			operations			income			gain			distributions			year		return(a)			(in 000s)		net assets			net assets			net assets			net assets			rate
For the Years ended December 31,
2004	$	9.59	$	0.07	$	0.80		$	0.87		$	(0.07	)	$	—		$	(0.07	)	$	10.39		9.09	%	$	186,688		0.89	%		0.69	%		0.89	%		0.69	%		45	%
2003		7.77		0.03		1.81			1.84			(0.02	)		—			(0.02	)		9.59		23.74			179,694		1.02			0.38			1.43			(0.03	)		16
2002		10.28		0.01		(2.50	)		(2.49	)		(0.02	)		—			(0.02	)		7.77		(24.33	)		18,052		1.10			0.16			1.77			(0.51	)		24
2001		12.09		0.02		(1.78	)		(1.76	)		(0.02	)		(0.03	)		(0.05	)		10.28		(14.46	)		16,266		1.00			0.15			1.69			(0.54	)		39
2000		14.01		0.01		(1.16	)		(1.15	)		(0.01	)		(0.76	)		(0.77	)		12.09		(7.98	)		16,775		0.99			0.13			1.84			(0.72	)		37

(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.

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

11

 GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Notes to Financial Statements

December 31, 2004

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 the Goldman Sachs Capital Growth Fund (the “Fund”). The Fund is a diversified portfolio 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 Fund. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts. Actual results could differ from those estimates.

A. Investment Valuation — Investments in securities traded on a U.S. securities exchange or the NASDAQ system are valued daily at their last sale price 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. Investments in investment companies are valued at the net asset value per share on valuation date. 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 or are deemed to be inaccurate by the Investment Adviser are valued at fair value using methods approved by the Trust’s Board of Trustees.

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 which are reduced by any amount reclaimable by the Fund, where applicable. Interest income is recorded on the basis of interest accrued, premium amortized and discount accreted.

C. Federal Taxes — It is the Fund’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute each year substantially all of its investment company taxable income and capital gains to its shareholders. Accordingly, no federal tax 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 Federal income tax rules. Therefore, the source of the Fund’s distributions may be shown in the accompanying financial statements as either from net investment income or net realized gain, or from paid-in-capital.

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

E. Segregation Transactions — As set forth in the prospectus, the Fund may enter into certain 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 Fund is required to segregate liquid assets on the accounting records equal to or greater than the market value of the corresponding transactions.

F. 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

12

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND 

2. SIGNIFICANT ACCOUNTING POLICIES— (continued)

underlying securities held as collateral on behalf of the Fund, including accrued interest, is required to equal or exceed the value of the repurchase agreement, including accrued interest. If the seller defaults or becomes insolvent, realization of the collateral by the Fund may be delayed or limited and there may be a decline in the value of the collateral during the period while the Fund seeks to assert its rights. The underlying securities for all repurchase agreements are held in safekeeping at the Fund’s custodian or designated subcustodians under triparty repurchase agreements.

     Pursuant to exemptive relief granted by the Securities and Exchange Commission (“SEC”) and terms and conditions contained therein, the Fund, together with other registered investment companies having management agreements with Goldman Sachs Asset Management, L.P. (“GSAM”), or its affiliates, transfers uninvested cash into joint accounts, the daily aggregate balance of which is invested in one or more repurchase agreements.

3. AGREEMENTS

GSAM, an affiliate of Goldman, Sachs & Co. (“Goldman Sachs”), serves as investment adviser pursuant to an Investment Management Agreement (the “Agreement”) with the Trust on behalf of the Fund. Under this Agreement, GSAM manages the Fund, subject to the general supervision of the Trust’s Board of Trustees.

     As compensation for the services rendered pursuant to the Agreements, the assumption of the expenses related thereto and administering the Fund’s business affairs, including providing facilities, GSAM is entitled to a fee (“Management Fee”) computed daily and payable monthly, at an annual rate equal to 0.75% of the average daily net assets of the Fund.

     GSAM has voluntarily agreed to limit certain “Other Expenses” of the Fund (excluding Management Fees, Transfer Agent fees and expenses, taxes, interest, brokerage fees, litigation and indemnification costs, shareholder meeting and other extraordinary expenses) to the extent that such expenses exceed, on an annual basis, 0.11% of the average daily net assets of the Fund. GSAM has agreed to maintain these expense limitations reductions through June 30, 2005. Such expense reimbursements, if any, are computed daily and paid monthly. In addition, the Fund is not obligated to reimburse GSAM for prior fiscal year expense reimbursements, if any.

     For the year ended December 31, 2004, GSAM made no reimbursements to the Fund. The Fund has entered into certain offset arrangements with the custodian resulting in a reduction in the Fund’s expenses. For the year ended December 31, 2004, custody fees were reduced by approximately $600.

     Goldman Sachs also serves as the Transfer Agent of the Fund for a fee. The 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 the Fund. Goldman Sachs serves as the distributor of the Fund’s shares at no cost to the Fund.

     At December 31, 2004, amounts owed to affiliates were approximately $117,000 and $6,000 for Management and Transfer Agent fees, respectively.

4. PORTFOLIO SECURITIES TRANSACTIONS

The cost of purchases and proceeds of sales and maturities of long term securities for the year ended December 31, 2004, were $79,411,653 and $86,296,716, respectively. For the year ended December 31, 2004, Goldman Sachs earned approximately $300 of brokerage commissions from portfolio transactions executed on behalf of the Fund.

     GSAM voluntarily made a one-time reimbursement of approximately $800 to the Fund for certain brokerage commissions, including interest, paid by the Fund over the course of several years.

5. SECURITIES LENDING

Pursuant to exemptive relief granted by the SEC and the terms and conditions contained therein, the Fund may lend its securities through its securities lending agent, Boston Global Advisers (“BGA”) — a wholly owned subsidiary of Goldman Sachs, to certain qualified borrowers including Goldman Sachs. In accordance with the Fund’s securities lending procedures, the loans are collateralized at all times with cash and/or securities with a market value at least equal to the securities on loan.

13

 GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Notes to Financial Statements (continued)

December 31, 2004

5. SECURITIES LENDING— (continued)

As with other extensions of credit, the Fund bears the risk of delay on recovery or loss of rights in the collateral should the borrower of the securities fail financially.

     Both the Fund and BGA receive compensation relating to the lending of the Fund’s securities. The amount earned by the Fund for the year ended December 31, 2004, is reported parenthetically on the Statement of Operations. A portion of this amount, $541, represents compensation earned by the Fund from lending its securities to Goldman Sachs. For the year ended December 31, 2004, BGA earned $360 in fees as securities lending agent. At December 31, 2004, the Fund loaned securities having a market value of $2,313,480 collateralized by cash in the amount of $2,421,000. The Fund invests 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 of up to 0.10% of the average daily net assets of the Enhanced Portfolio. The Enhanced Portfolio invests in high quality money market instruments. The Fund bears the risk of incurring a loss from the investment of cash collateral due to either credit or market factors.

6. LINE OF CREDIT FACILITY

The Fund participates in a $350,000,000 committed, unsecured revolving line of credit facility. Under the most restrictive arrangement, the Fund must own securities having a market value in excess of 300% (400% prior to May 26, 2004) 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. This committed facility also requires a fee to be paid by the Fund based on the amount of the commitment that has not been utilized. During the year ended December 31, 2004, the Fund did not have any borrowings under this facility.

7. ADDITIONAL TAX INFORMATION

The tax character of distributions paid during the fiscal years ended December 31, 2004 and December 31, 2003 were as follows:

	For the year ended December 31,
	2004		2003
Distributions paid from:
Ordinary income	$	1,269,081	$	67,672
Total taxable distributions	$	1,269,081	$	67,672

As of December 31, 2004, the components of accumulated earnings (losses) on a tax basis were as follows:

Capital loss carryforward:*
	Expiring 2008	$	(7,813,202	)
	Expiring 2009		(13,983,325	)
	Expiring 2010		(6,239,358	)
	Expiring 2011		(1,064,803	)
Total capital loss carryforward			(29,100,688	)
Timing differences (post-October losses)			(525,543	)
Unrealized gains — net			14,816,728
Total accumulated losses — net		$	(14,809,503	)

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

14

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND 

7. ADDITIONAL TAX INFORMATION— (continued)

At December 31, 2004, the Fund’s aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes was as follows:

Tax cost	$	174,411,091
Gross unrealized gain		26,684,970
Gross unrealized loss		(11,868,242	)
Net unrealized security gain	$	14,816,728

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

8. CERTAIN RECLASSIFICATIONS

In order to present certain components of the Fund’s capital accounts on a tax basis, certain reclassifications have been recorded to the Fund’s accounts. The Fund reclassified $11,048 from paid-in capital and $281 from accumulated net realized loss on investment transactions to accumulated undistributed net investment income. This reclassification has no impact on the net asset value of the Fund. Reclassifications result primarily from the difference in the tax treatment of taxable overdistributions and adjustments related to prior year merger activity.

9. 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 Capital Growth Fund of Protective Investment Company by the Fund 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 Fund. 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 Capital Growth and Ayco Growth Funds were transferred to the Fund in a tax-free exchange for shares of the Fund as follows:

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

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 Fund’s unrealized appreciation (depreciation) and capital loss carryforwards.

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

*  For U.S. federal income tax purposes, certain limitations may apply to the utilization of the Acquired Fund’s capital loss carryforwards.

15

Report of Independent Registered Public Accounting Firm

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

We have audited the accompanying statement of assets and liabilities of Goldman Sachs Capital Growth Fund (one of the funds comprising the Goldman Sachs Variable Insurance Trust) (the “Fund”), including the statement of investments, as of December 31, 2004, and the related statement 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 five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (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 consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2004, by correspondence with the custodian and others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Goldman Sachs Capital Growth Fund at December 31, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York

February 9, 2005

16

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND 

Fund Expenses (Unaudited) — Six Month Period Ended December 31, 2004

          As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

          The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2004 through December 31, 2004.

          Actual Expenses — The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account for this period.

          Hypothetical Example for Comparison Purposes — The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

          Please note that the expenses shown in the table are meant to highlight your ongoing costs only. As a shareholder of the Fund, you do not incur any transaction costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. The second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds whose shareholders may incur transaction costs.

						Expenses Paid
						for the
	Beginning		Ending Account			6 months
	Account Value		Value			ended
	7/1/04		12/31/04			12/31/04*
Actual	$	1,000	$	1,059.90		$	4.77
Hypothetical 5% return		1,000		1,020.50	+		4.68

*  Expenses are calculated using the Fund’s annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended December 31, 2004. Expenses are calculated by multiplying the annualized expense ratio by the average account value for such period; then multiplying the result by the number of days in the most recent fiscal half year; and then dividing that result by the number of days in the calendar year. Expense ratios for the most recent fiscal half year may differ from expense ratios based on one-year data in the Financial Highlights. The annualized net expense ratio for the period was 0.92%.

+  Hypothetical expenses are based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses.

17

 GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Trustees and Officers (Unaudited)

Independent Trustees

				Number of
		Term of		Portfolios in
	Position(s)	Office and		Fund Complex	Other
Name,	Held with	Length of	Principal Occupation(s)	Overseen by	Directorships
Address and Age1	the Trust2	Time Served3	During Past 5 Years	Trustee4	Held by Trustee5
Ashok N. Bakhru Age: 62	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, Scholarship 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) (2000-2003). Chairman of the Board and Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
John P. Coblentz, Jr. Age: 63	Trustee	Since 2003	Partner, Deloitte & Touche LLP (June 1975-May 2003). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Patrick T. Harker Age: 46	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Mary P. McPherson Age: 69	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Wilma J. Smelcer Age: 55	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-April 2004). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	Lawson Products Inc. (distributor of industrial products).
Richard P. Strubel Age: 65	Trustee	Since 1987	Vice Chairman and Director, Unext, Inc. (provider of educational services via the internet) (2003-Present); President, COO and Director, Unext, Inc. (1999-2003); 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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	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).

18

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND 

Interested Trustees (Unaudited)

				Number of
		Term of		Portfolios in
	Position(s)	Office and		Fund Complex	Other
Name,	Held with	Length of	Principal Occupation(s)	Overseen by	Directorships
Address and Age1	the Trust2	Time Served3	During Past 5 Years	Trustee4	Held by Trustee5
*Alan A. Shuch Age: 55	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
*Kaysie P. Uniacke Age: 43	Trustee & President	Since 2001 Since 2002	Managing Director, GSAM (1997-Present). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies). President—Goldman Sachs Mutual Fund Complex (2002- Present) (registered investment companies). Assistant Secretary—Goldman Sachs Mutual Fund Complex (1997-2002) (registered investment companies).	63	None

*	These persons are considered to be “Interested Trustees” because they hold positions with Goldman Sachs and own securities issued by The Goldman Sachs Group, Inc. Each Interested Trustee holds comparable positions with certain other companies of which Goldman Sachs, GSAM or an affiliate thereof is the investment adviser, administrator and/or distributor.
1	Each Trustee may be contacted by writing to the Trustee, c/o Goldman Sachs, One New York Plaza, 37th 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, 2004, the Trust consisted of 57 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 of America): 1-800-292-4726

19

 GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND

Trustees and Officers (Unaudited) (continued)

Officers of the Trust*

		Term of
		Office and
	Position(s) Held	Length of
Name, Address And Age	With the Trust	Time Served1	Principal Occupation(s) 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).
James A. Fitzpatrick 4900 Sears Tower Chicago, IL 60606 Age: 44	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: 42	Vice President	Since 2001	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). Vice President—Goldman Sachs Mutual Fund Complex (registered investment companies). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies) (December 2002-May 2004).
John M. Perlowski 32 Old Slip New York, NY 10005 Age: 40	Treasurer	Since 1997	Managing Director, Goldman Sachs (November 2003-Present) and Vice President, Goldman Sachs (July 1995-November 2003). Treasurer—Goldman Sachs Mutual Fund Complex (registered investment companies).
Howard B. Surloff One New York Plaza 37th Floor New York, NY 10004 Age: 39	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.

20

GOLDMAN SACHS VARIABLE INSURANCE TRUST CAPITAL GROWTH FUND 

Goldman Sachs Variable Insurance Trust Capital Growth Fund — Tax Information (Unaudited)

For the year ended December 31, 2004, 100% of the dividends paid from net investment company taxable income by the Fund qualify for the dividends received deduction available to corporations.

21

TRUSTEES	OFFICERS
Ashok N. Bakhru, Chairman	Kaysie P. Uniacke, President
John P. Coblentz, Jr.	James A. Fitzpatrick, Vice President
Patrick T. Harker	James A. McNamara, Vice President
Mary Patterson McPherson	John M. Perlowski, Treasurer
Alan A. Shuch	Howard B. Surloff, Secretary
Wilma J. Smelcer
Richard P. Strubel
Kaysie P. Uniacke
GOLDMAN, SACHS & CO. Distributor and Transfer Agent
GOLDMAN SACHS ASSET MANAGEMENT, L.P. Investment Adviser
Visit our internet address: www.gs.com/funds to obtain the most recent month-end returns.
The reports concerning the Fund included in this shareholder report may contain certain forward-looking statements about the factors that may affect the performance of the Fund in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Fund, 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 Fund. 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.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (i) without charge, upon request by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders); and (ii) on the Securities and Exchange Commission Web site at http://www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“the Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the Commission’s website at http://www.sec.gov. The Fund’s Form N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Form N-Q may be obtained upon request and without charge by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders).
This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus for the Fund. Please consider the Fund’s objectives, risks and charges and expenses, and read the Prospectus carefully before investing.
Holdings are as of December 31, 2004 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 Fund is subject to the risk of rising and falling stock prices. In recent years, the U.S. stock market has experienced substantial price volatility.
	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: Capital Growth Fund.
© Copyright 2005 Goldman, Sachs & Co. All rights reserved. Date of first use: February 18, 2005
VITCGAR

Goldman

Sachs Variable Insurance Trust

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

Mid Cap Value Fund

Annual Report

December 31, 2004

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, 2004.

Market Review

For the first time since 1999, the broad U.S. equity markets posted positive returns in consecutive years. With the overhang of the U.S. Presidential election finally removed, much of the market’s gains for 2004 came in the fourth quarter of the year. Throughout the reporting period, industry headlines centered on oil prices and high profile investigations conducted by New York Attorney General Eliot Spitzer and other law enforcement and regulatory agencies. On the economic front, improving trends further bolstered investor sentiment, as job growth appeared to gain traction, while inflation remained at a moderate rate.

Investment Objective

The Fund seeks long-term capital appreciation.

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2004*

		% of
Company	Business	Net Assets
iStar Financial, Inc.	REITS		2.9	%
PPL Corp.	Electrical Utilities		2.9
Abercrombie & Fitch Co.	Retail Apparel		2.7
The Williams Companies, Inc.	Diversified Energy		2.4
Regions Financial Corp.	Regional Banks		2.2
Lennar Corp.	Construction		2.2
EOG Resources, Inc.	Energy Resources		2.1
Activision, Inc.	Computer Software		2.1
AGL Resources, Inc.	Gas Utilities		2.0
M&T Bank Corp.	Regional 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.

1

 GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Shareholder Letter (continued)

Performance Review

Over the one-year period that ended December 31, 2004, the Fund generated a cumulative total return of 25.88%. Over the same time period, the Fund’s benchmark, the Russell Midcap Value Index (with dividends reinvested) generated a cumulative total return of 23.71%. Stock selection was strongest in the Healthcare, Financial, and Industrial sectors, while investments in Utilities, Services, and REITs generated more modest gains.

Top contributors to performance included Abercrombie & Fitch Co. in Consumer Cyclicals, Activision, Inc. in Technology, and The Williams Companies, Inc. in Energy. Abercrombie & Fitch benefited from changes in its merchandising strategies earlier in the year. Activision, a video game maker/ marketer, increased its earnings outlook for 2005 and reported better-than-expected holiday sales. Williams Companies, the one-time troubled natural gas firm, announced further progress in its debt-reduction efforts and increased its dividend for the first time in two years. The dividend increase and its magnitude, from one cent to five cents, signaled to investors the near completion of its multi-year restructuring program.

One of the Fund’s largest detractors from performance was Ditech Communications Corp. The telecom equipment supplier reported earnings that fell short of high revenue expectations due to an order disruption in Asia and soft demand in North America. The company’s management, which we consider conservative, also guided revenue forecasts to more achievable levels. We continue to hold Ditech Communications, and even added to the Fund’s position in the fourth quarter of 2004.

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

Goldman Sachs Value Portfolio Management Team

January 19, 2005

2

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND 

SECTOR ALLOCATION AS OF DECEMBER 31, 2004†

Percentage of Portfolio Investments

† The Fund is actively managed and, as such, its composition may differ over time. The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value (excluding repurchase agreements, securities lending collateral and cash).

This Sector Allocation chart is provided for your reference. This new information has been included in response to recent rule and form amendments made by the Securities and Exchange Commission.

3

 GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Performance Summary

December 31, 2004

The following graph shows the value as of December 31, 2004, 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. Performance also would have been reduced had expense limitations not been in effect. 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, 2004.

	Since Inception	Five Years	One Year
Average Annual Total Return Through December 31, 2004
Mid Cap Value Fund (commenced May 1, 1998)	10.41%	17.72%	25.88%

4

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND 

Statement of Investments

December 31, 2004

Shares		Description	Value
Common Stocks – 97.2%
Biotechnology – 1.1%
	383,065	MedImmune, Inc.*	$	10,384,892
Brokers – 1.1%
	93,952	The Bear Stearns Companies, Inc.		9,612,229
Chemicals – 3.2%
	926,483	Agrium, Inc.		15,611,239
	316,080	Rohm and Haas Co.		13,980,218
				29,591,457
Computer Hardware – 3.1%
	131,048	CDW Corp.		8,695,035
	391,455	Ditech Communications Corp.*		5,852,252
	111,095	Hutchinson Technology, Inc.*		3,840,554
	214,320	Tech Data Corp.*		9,730,128
				28,117,969
Computer Software – 2.1%
	949,287	Activision, Inc.*		19,156,612
Construction – 2.2%
	353,665	Lennar Corp.@		20,045,732
Consumer Durables – 1.6%
	82,934	Mohawk Industries, Inc.*		7,567,727
	147,020	The Stanley Works		7,202,510
				14,770,237
Defense/ Aerospace – 1.4%
	324,092	Rockwell Collins, Inc.		12,782,188
Diversified Energy – 3.6%
	1,366,479	The Williams Companies, Inc.		22,259,943
	360,429	Western Gas Resources, Inc.		10,542,548
				32,802,491
Drugs – 1.5%
	137,540	Charles River Laboratories International, Inc.*		6,328,216
	219,314	Watson Pharmaceuticals, Inc.*		7,195,692
				13,523,908
Electrical Utilities – 8.4%
	147,425	Edison International		4,722,023
	153,821	Entergy Corp.		10,396,761
	313,739	FirstEnergy Corp.		12,395,828
	394,725	PG&E Corp.*		13,136,448
	87,050	Pinnacle West Capital Corp.		3,865,891
	497,018	PPL Corp.		26,481,119
	175,309	Wisconsin Energy Corp.		5,909,666
				76,907,736
Energy Resources – 4.1%
	272,302	EOG Resources, Inc.		19,431,471
	365,391	Patina Oil & Gas Corp.		13,702,162
	56,915	Peabody Energy Corp.		4,604,993
				37,738,626
Environmental & Other Services – 1.0%
	277,692	Republic Services, Inc.		9,313,790
Food & Beverage – 1.3%
	371,506	Archer-Daniels-Midland Co.		8,288,299
	141,241	The Pepsi Bottling Group, Inc.		3,819,157
				12,107,456
Gas Utilities – 2.0%
	539,875	AGL Resources, Inc.		17,945,445
Health Insurance – 1.9%
	601,872	Health Net, Inc.*		17,376,045
Home Products – 2.1%
	253,890	The Clorox Co.		14,961,737
	90,040	The Estee Lauder Companies, Inc.		4,121,131
				19,082,868
Hotel & Leisure – 1.9%
	134,171	Harrah’s Entertainment, Inc.		8,974,698
	351,474	Hilton Hotels Corp.		7,992,519
				16,967,217
Information Services – 0.7%
	810,790	BearingPoint, Inc.*		6,510,644
Life Insurance – 0.9%
	150,473	Torchmark Corp.		8,598,027
Media – 2.2%
	510,295	Emmis Communications Corp.*		9,792,561
	247,289	Lamar Advertising Co.*		10,579,023
				20,371,584
Medical Products – 0.3%
	54,365	Hillenbrand Industries, Inc.		3,019,432
Medical Providers – 0.6%
	726,056	WebMD Corp.*		5,924,617
Mining – 1.0%
	172,630	Nucor Corp.		9,035,454
Motor Vehicle – 1.6%
	127,946	Autoliv, Inc.		6,179,792
	145,072	Lear Corp.		8,850,843
				15,030,635
Oil Services – 1.8%
	827,843	Patterson-UTI Energy, Inc.		16,101,546
Paper & Packaging – 1.3%
	492,378	Packaging Corp. of America		11,595,502
Parts & Equipment – 3.5%
	170,233	American Standard Companies, Inc.*		7,034,028
	120,729	Cummins, Inc.		10,115,883
	204,654	Eaton Corp.		14,808,763
				31,958,674

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

5

 GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Statement of Investments (continued)

December 31, 2004

Shares		Description	Value
Common Stocks – (continued)
Property Insurance – 7.7%
	109,585	AMBAC Financial Group, Inc.	$	9,000,216
	154,049	Everest Re Group, Ltd.		13,796,629
	217,856	PartnerRe Ltd.		13,494,001
	291,164	RenaissanceRe Holdings Ltd.		15,163,821
	109,835	The PMI Group, Inc.		4,585,611
	364,330	Willis Group Holdings Ltd.		14,999,466
				71,039,744
Publishing – 0.8%
	281,566	A.H. Belo Corp.		7,388,292
Regional Banks – 7.3%
	136,709	Commerce Bancshares, Inc.		6,862,792
	461,897	FirstMerit Corp.		13,159,445
	256,263	KeyCorp.		8,687,316
	164,087	M&T Bank Corp.		17,695,142
	574,495	Regions Financial Corp.		20,446,277
				66,850,972
REITS – 8.3%
	379,270	Apartment Investment & Management Co.		14,617,066
	285,580	Developers Diversified Realty Corp.		12,671,185
	594,852	iStar Financial, Inc.		26,923,001
	297,953	Plum Creek Timber Co., Inc.		11,453,313
	273,200	Prentiss Properties Trust		10,436,240
				76,100,805
Restaurants – 1.0%
	200,510	Yum! Brands, Inc.		9,460,062
Retail Apparel – 6.4%
	526,738	Abercrombie & Fitch Co.		24,730,349
	264,577	Federated Department Stores, Inc.		15,289,905
	294,206	J. C. Penney Co., Inc.		12,180,128
	226,716	Ross Stores, Inc.		6,545,291
				58,745,673
Semiconductors – 1.2%
	189,190	Amphenol Corp.*		6,950,841
	186,626	Power Integrations, Inc.*		3,691,462
	16,200	Tessera Technologies, Inc.*		602,802
				11,245,105
Specialty Financials – 2.9%
	300,200	American Capital Strategies Ltd.@		10,011,670
	364,301	CIT Group, Inc.		16,692,272
				26,703,942
Telephone – 0.7%
	183,294	CenturyTel, Inc.		6,501,438
Tobacco – 0.8%
	90,545	Reynolds American, Inc.		7,116,837
Transports – 1.7%
	168,819	Teekay Shipping Corp.		7,108,968
	154,240	Yellow Roadway Corp.*		8,592,710
				15,701,678
Trust/ Processors – 0.9%
	165,275	Northern Trust Corp.		8,029,060
TOTAL COMMON STOCKS
(Cost $719,537,024)			$	891,256,621

Principal		Interest			Maturity
Amount		Rate			Date		Value
Repurchase Agreement – 3.8%
Joint Repurchase Agreement Account II^
$	34,700,000		2.28	%		01/03/2005	$	34,700,000
Maturity Value  $34,706,593
(Cost $34,700,000)
TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL
(Cost $754,237,024)							$	925,956,621

Shares		Description	Value
Securities Lending Collateral – 2.7%
	25,090,750	Boston Global Investment Trust — Enhanced Portfolio	$	25,090,750
(Cost $25,090,750)
TOTAL INVESTMENTS — 103.7%
(Cost $779,327,774)			$	951,047,371

*	Non-income producing security.
@	All or a portion of security is on loan.
^	Joint repurchase agreement was entered into on December 31, 2004.

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

Investment Abbreviations:
REIT	—	Real Estate Investment Trust

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

6

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND 

ADDITIONAL INVESTMENT INFORMATION

JOINT REPURCHASE AGREEMENT ACCOUNT II* — At December 31, 2004, the Mid Cap Value Fund had an undivided interest in the following Joint Repurchase Agreement Account II which equaled $34,700,000 in principal amount.

	Principal		Interest			Maturity	Maturity
Repurchase Agreements	Amount		Rate			Date	Value
Barclays Capital PLC	$	350,000,000		2.28	%	01/03/2005	$	350,066,500
Barclays Capital PLC		400,000,000		2.30		01/03/2005		400,076,667
Bear Stearns & Co.		500,000,000		2.29		01/03/2005		500,095,417
Greenwich Capital Markets		400,000,000		2.28		01/03/2005		400,076,000
J.P. Morgan Chase & Co.		364,100,000		2.28		01/03/2005		364,169,179
Morgan Stanley & Co.		300,000,000		2.27		01/03/2005		300,056,750
UBS LLC		500,000,000		2.26		01/03/2005		500,094,166
UBS LLC		250,000,000		2.28		01/03/2005		250,047,500
Westdeutsche Landesbank AG		400,000,000		2.28		01/03/2005		400,076,000
TOTAL	$	3,464,100,000					$	3,464,758,179

*  At December 31, 2004, the Joint Repurchase Agreement Account II was fully collateralized by Federal Home Loan Bank, 0.00% to 4.52%, due 03/30/2006 to 08/10/2010; Federal Home Loan Mortgage Association, 0.00% to 11.75%, due 02/01/2005 to 11/01/2035; Federal National Mortgage Association, 0.00% to 11.00%, due 12/15/2005 to 01/01/2035 and Government National Mortgage Association, 6.00%, due 12/15/2033.

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

7

 GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Statement of Assets and Liabilities

December 31, 2004

Assets:
Investment in securities, at value (identified cost $754,237,024)		$	925,956,621
Securities lending collateral, at value			25,090,750
Cash			54,613
Receivables:
	Fund shares sold		1,731,575
	Investment securities sold		1,067,262
	Dividends and interest		998,415
	Securities lending income		4,783
Total assets			954,904,019
Liabilities:
Payables:
	Payable upon return of securities loaned		25,090,750
	Investment securities purchased		8,583,943
	Fund shares repurchased		3,307,664
	Amounts owed to affiliates		629,603
Accrued expenses			140,757
Total liabilities			37,752,717
Net Assets:
Paid-in capital			728,849,673
Accumulated undistributed net investment income			123,988
Accumulated net realized gain on investment transactions			16,458,044
Net unrealized gain on investments			171,719,597
NET ASSETS		$	917,151,302
Total shares of beneficial interest outstanding, par value $0.001 (unlimited shares authorized)			60,005,261
Net asset value, offering and redemption price per share		$	15.28

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

8

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND 

Statement of Operations

For the Year Ended December 31, 2004

Investment income:
Dividends(a)	$	10,492,809
Interest (including securities lending income of $30,179)		317,845
Total income		10,810,654
Expenses:
Management fees		5,607,738
Transfer agent fees		280,387
Custody and accounting fees		136,584
Professional fees		50,666
Printing fees		40,766
Trustee fees		14,439
Other		19,124
Total expenses		6,149,704
Less — expense reductions		(2,745	)
Net expenses		6,146,959
NET INVESTMENT INCOME		4,663,695
Realized and unrealized gain on investment transactions:
Net realized gain from investment transactions		96,038,101
Net increase from payment by affiliates to reimburse certain brokerage commissions		4,488
Net change in unrealized gain on investments		71,810,943
Net realized and unrealized gain on investment transactions		167,853,532
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	172,517,227

(a)   Foreign taxes withheld on dividends were $13,726.

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

9

 GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Statements of Changes in Net Assets

	For the			For the
	Year Ended			Year Ended
	December 31, 2004			December 31, 2003
From operations:
Net investment income	$	4,663,695		$	4,414,044
Net realized gain on investment transactions		96,038,101			15,687,799
Net increase from payment by affiliates to reimburse certain brokerage commissions		4,488			—
Net change in unrealized gain on investments		71,810,943			97,691,989
Net increase in net assets resulting from operations		172,517,227			117,793,832
Distributions to shareholders:
From net investment income		(4,829,536	)		(4,441,591	)
From net realized gain on investment transactions		(77,536,102	)		(5,830,111	)
Total distributions to shareholders		(82,365,638	)		(10,271,702	)
From share transactions:
Proceeds from sales of shares		221,280,141			161,701,075
Reinvestment of dividends and distributions		82,365,638			10,271,702
Cost of shares repurchased		(54,569,105	)		(59,108,989	)
Net increase in net assets resulting from share transactions		249,076,674			112,863,788
TOTAL INCREASE		339,228,263			220,385,918
Net assets:
Beginning of year		577,923,039			357,537,121
End of year	$	917,151,302		$	577,923,039
Accumulated undistributed net investment income	$	123,988		$	—
Summary of share transactions:
Shares sold		15,134,517			14,040,664
Shares issued on reinvestment of dividends and distributions		5,458,182			788,917
Shares repurchased		(3,828,587	)		(5,300,708	)
NET INCREASE		16,764,112			9,528,873

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

10

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Year

			Income (loss) from																														Ratios assuming no
			investment operations								Distributions to shareholders																						expense reductions
					Net																									Ratio of			Ratio of			Ratio of
	Net asset				realized									From						Net asset					Net assets		Ratio of			net investment			total			net investment
	value,		Net		and			Total from			From net			net						value,					at end		net expenses			income			expenses			income			Portfolio
	beginning		investment		unrealized			investment			investment			realized			Total			end of		Total			of year		to average			to average			to average			to average			turnover
	of year		income(b)		gain (loss)			operations			income			gain			distributions			year		return(a)			(in 000s)		net assets			net assets			net assets			net assets			rate
For the Years Ended December 31,
2004	$	13.37	$	0.10	$	3.34		$	3.44		$	(0.09	)	$	(1.44	)	$	(1.53	)	$	15.28		25.88	%	$	917,151		0.88	%		0.67	%		0.88	%		0.67	%		72	%
2003		10.61		0.12		2.89			3.01			(0.11	)		(0.14	)		(0.25	)		13.37		28.39			577,923		0.91			1.02			0.91			1.02			64
2002		11.29		0.14		(0.67	)		(0.53	)		(0.12	)		(0.03	)		(0.15	)		10.61		(4.69	)		357,537		0.91			1.20			0.91			1.20			95
2001		10.67		0.14		1.14			1.28			(0.11	)		(0.55	)		(0.66	)		11.29		12.05			243,521		0.93			1.27			0.94			1.26			82
2000		8.42		0.15		2.45			2.60			(0.08	)		(0.27	)		(0.35	)		10.67		31.07			101,657		1.04			1.60			1.22			1.42			101

(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.

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

11

 GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Notes to Financial Statements

December 31, 2004

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 the Goldman Sachs Mid Cap Value Fund (the “Fund”). The Fund is a diversified portfolio 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 Fund. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts. Actual results could differ from those estimates.

A. Investment Valuation — Investments in securities traded on a U.S. securities exchange or the NASDAQ system are valued daily at their last sale price 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. Investments in investment companies are valued at the net asset value per share on valuation date. 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 or deemed to be inaccurate by the investment adviser are valued at fair value using methods approved by the Trust’s Board of Trustees.

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 which are reduced by any amounts reclaimable by the Fund, where applicable. Interest income is recorded on the basis of interest accrued, premium amortized and discount accreted.

C. Federal Taxes — It is the Fund’s policy to comply with the requirements of the Internal Revenue Code (the “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 Federal income tax rules. Therefore, the source of the Fund’s distributions may be shown in the accompanying financial statements as either from net investment income or net realized gain on investment transactions, or from paid-in-capital.

     In addition, distributions paid by the Fund’s investments in real estate investment trusts (“REITs”) often include a “return of capital” which is recorded by the Fund as a reduction of the cost basis of the securities held. The Code requires a REIT to distribute at least 95% of its taxable income to investors. In many cases, however, because of “non-cash” expenses such as property depreciation, an equity REIT’s cash flow will exceed its taxable income. The REIT may distribute this excess cash to offer a more competitive yield. This portion of the distribution is deemed a return of capital, and is generally not taxable to shareholders.

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

E. Segregation Transactions — As set forth in the prospectus, the Fund may enter into certain 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,

12

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND 

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

the Fund is required to segregate liquid assets on the accounting records equal to or greater than the market value of the corresponding transactions.

F. 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 Fund, including accrued interest, is required to equal or exceed the value of the repurchase agreement, including accrued interest. If the seller defaults or becomes insolvent, realization of the collateral by the Fund may be delayed or limited and there may be a decline in the value of the collateral during the period while the Fund seeks to assert its rights. The underlying securities for all repurchase agreements are held in safekeeping at the Fund’s custodian or designated subcustodians under triparty repurchase agreements.

     Pursuant to exemptive relief granted by the Securities and Exchange Commission (“SEC”) and terms and conditions contained therein, the Fund, together with other registered investment companies having management agreements with Goldman Sachs Asset Management, L.P. (“GSAM”), or its affiliates, transfers uninvested cash into joint accounts, the daily aggregate balance of which is invested in one or more repurchase agreements.

3. AGREEMENTS

GSAM, an affiliate of Goldman, Sachs & Co. (“Goldman Sachs”), serves as investment adviser pursuant to an Investment Management Agreement (the “Agreement”) with the Trust on behalf of the Fund. Under this Agreement, GSAM manages the Fund, subject to the general supervision of the Trust’s Board of Trustees.

     As compensation for the services rendered pursuant to the Agreement, the assumption of the expenses related thereto and administering the Fund’s business affairs, including providing facilities, GSAM is entitled to a fee (“Management Fee”) computed daily and payable monthly, at an annual rate equal to 0.80% of the average daily net assets of the Fund.

     GSAM has voluntarily agreed to limit certain “Other Expenses” of the Fund (excluding Management Fees, Transfer Agent fees and expenses, taxes, interest, brokerage fees, litigation and indemnification costs, shareholder meeting and other extraordinary expenses) to the extent that such expenses exceed, on an annual basis, 0.25% of the average daily net assets of the Fund. GSAM may waive or modify the expense limitation for the Fund, at its discretion, at anytime. Such expense reimbursements, if any, are computed daily and paid monthly. In addition, the Fund is not obligated to reimburse GSAM for prior fiscal year expense reimbursements, if any. For the year ended December 31, 2004, GSAM made no reimbursements to the Fund.

     In addition, the Fund has entered into certain offset arrangements with the custodian resulting in a reduction in the Fund’s expenses. For the year ended December 31, 2004, custody fees were reduced by approximately $3,000.

     Goldman Sachs also serves as the transfer agent of the Fund for a fee. The 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 the Fund. Goldman Sachs serves as the distributor of the Fund’s shares at no cost to the Fund.

     At December 31, 2004, the amounts owed to affiliates were approximately $600,000 and $30,000 for Management and Transfer Agent fees, respectively.

4. PORTFOLIO SECURITIES TRANSACTIONS

The cost of purchases and proceeds of sales and maturities of long term securities for the year ended December 31, 2004, were $668,474,040 and $494,043,163, respectively. For the year ended December 31, 2004, Goldman Sachs earned approximately $50,500 of brokerage commissions from portfolio transactions, executed on behalf of the Fund.

     GSAM voluntarily made a one-time reimbursement of approximately $4,800 to the Fund for certain brokerage commissions, including interest, paid by the Fund over the course of several years.

13

 GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Notes to Financial Statements (continued)

December 31, 2004

5. SECURITIES LENDING

Pursuant to exemptive relief granted by the SEC and the terms and conditions contained therein, the Fund may lend its securities through its securities lending agent, Boston Global Advisers (“BGA”) — a wholly owned subsidiary of Goldman Sachs, to certain qualified borrowers including Goldman Sachs. In accordance with the Fund’s securities lending procedures, 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 Fund bears the risk of delay on recovery or loss of rights in the collateral should the borrower of the securities fail financially.

     Both the Fund and BGA receive compensation relating to the lending of the Fund’s securities. The amount earned by the Fund for the year ended December 31, 2004, is reported parenthetically on the Statement of Operations. A portion of this amount, $451, represents compensation earned by the Fund from lending its securities to Goldman Sachs. For the year ended December 31, 2004, BGA earned $5,325 in fees as securities lending agent. At December 31, 2004, the Fund loaned securities having a market value of $24,411,290 collateralized by cash in the amount of $25,090,750. The Fund invests 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 of up to 0.10% of the average daily net assets of the Enhanced Portfolio. The Enhanced Portfolio invests in high quality money market instruments. The Fund bears the risk of incurring a loss from the investment of cash collateral due to either credit or market factors.

6 LINE OF CREDIT FACILITY

The Fund participates in a $350,000,000 committed, unsecured revolving line of credit facility. Under the most restrictive arrangement, the Fund must own securities having a market value in excess of 300% (400% prior to May 26, 2004) 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. This committed facility also requires a fee to be paid by the Fund based on the amount of the commitment that has not been utilized. During the year ended December 31, 2004, the Fund did not have any borrowings under this facility.

7. ADDITIONAL TAX INFORMATION

The tax character of distributions paid during the fiscal years ended December 31, 2004 and December 31, 2003 were as follows:

	For the year ended December 31,
	2004		2003
Distributions paid from:
Ordinary income	$	36,189,251	$	5,595,351
Net long-term capital gains		46,176,387		4,676,351
Total taxable distributions	$	82,365,638	$	10,271,702

14

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND 

7. ADDITIONAL TAX INFORMATION (continued)

     As of December 31, 2004, the components of accumulated earnings on a tax basis were as follows:

Undistributed ordinary income — net	$	5,970,416
Undistributed long-term capital gains		11,077,822
Total undistributed earnings	$	17,048,238
Timing differences (related to the recognition of certain REIT dividends for tax purposes)		123,988
Unrealized gains — net		171,129,403
Total accumulated earnings — net	$	188,301,629

     At December 31, 2004, the Fund’s aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes was as follows:

Tax cost	$	779,917,968
Gross unrealized gain		174,692,158
Gross unrealized loss		(3,562,755	)
Net unrealized security gain	$	171,129,403

The difference between book-basis and tax-basis unrealized gains (losses) is attributable primarily to wash sales and return of capital distributions from underlying fund investments.

8. CERTAIN RECLASSIFICATIONS

In order to present certain components of the Fund’s capital accounts on a tax basis, certain reclassifications have been recorded to the Fund’s accounts. The Fund reclassified $289,829 from accumulated net realized gain on investment transactions to accumulated undistributed net investment income. This reclassification has no impact on the net asset value of the Fund. Reclassifications result primarily from the difference in the tax treatment of dividend redesignations.

15

Report of Independent Registered Public Accounting Firm

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

We have audited the accompanying statement of assets and liabilities of Goldman Sachs Mid Cap Value Fund (one of the funds comprising the Goldman Sachs Variable Insurance Trust) (the “Fund”), including the statement of investments, as of December 31, 2004, and the related statement 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 five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (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 consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2004, by correspondence with the custodian and others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Goldman Sachs Mid Cap Value Fund at December 31, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York

February 9, 2005

16

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND 

Fund Expenses (Unaudited) — Six Month Period Ended December 31, 2004

          As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

          The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2004 through December 31, 2004.

Actual Expenses — The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account for this period.

Hypothetical Example for Comparison Purposes — The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

          Please note that the expenses shown in the table are meant to highlight your ongoing costs only. As a shareholder of the Fund, you do not incur any transaction costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. The second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds whose shareholders may incur transaction costs.

						Expenses Paid
	Beginning		Ending			for the
	Account		Account			6 months
	Value		Value			ended
	7/1/04		12/31/04			12/31/04*
Actual	$	1,000	$	1,140.30		$	4.75
Hypothetical 5% return		1,000		1,020.70	+		4.48

*  Expenses are calculated using the Fund’s annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended December 31, 2004. Expenses are calculated by multiplying the annualized expense ratio by the average account value for such period; then multiplying the result by the number of days in the most recent fiscal half year; and then dividing that result by the number of days in the calendar year. Expense ratios for the most recent fiscal half year may differ from expense ratios based on one-year data in the Financial Highlights. The annualized net expense ratio for the period was 0.88%.

+  Hypothetical expenses are based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses.

17

 GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Trustees and Officers (Unaudited)

Independent Trustees

				Number of
		Term of		Portfolios in
	Position(s)	Office and		Fund Complex	Other
Name,	Held with	Length of	Principal Occupation(s)	Overseen by	Directorships
Address and Age1	the Trust2	Time Served3	During Past 5 Years	Trustee4	Held by Trustee5
Ashok N. Bakhru Age: 62	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, Scholarship 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) (2000-2003). Chairman of the Board and Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
John P. Coblentz, Jr. Age: 63	Trustee	Since 2003	Partner, Deloitte & Touche LLP (June 1975-May 2003). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Patrick T. Harker Age: 46	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Mary P. McPherson Age: 69	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Wilma J. Smelcer Age: 55	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-April 2004). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	Lawson Products Inc. (distributor of industrial products).
Richard P. Strubel Age: 65	Trustee	Since 1987	Vice Chairman and Director, Unext, Inc. (provider of educational services via the internet) (2003-Present); President, COO and Director, Unext, Inc. (1999-2003); 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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	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).

18

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND 

Interested Trustees (Unaudited)

				Number of
		Term of		Portfolios in
	Position(s)	Office and		Fund Complex	Other
Name,	Held with	Length of	Principal Occupation(s)	Overseen by	Directorships
Address and Age1	the Trust2	Time Served3	During Past 5 Years	Trustee4	Held by Trustee5
*Alan A. Shuch Age: 55	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
*Kaysie P. Uniacke Age: 43	Trustee & President	Since 2001 Since 2002	Managing Director, GSAM (1997-Present). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies). President—Goldman Sachs Mutual Fund Complex (2002- Present) (registered investment companies). Assistant Secretary—Goldman Sachs Mutual Fund Complex (1997-2002) (registered investment companies).	63	None

*	These persons are considered to be “Interested Trustees” because they hold positions with Goldman Sachs and own securities issued by The Goldman Sachs Group, Inc. Each Interested Trustee holds comparable positions with certain other companies of which Goldman Sachs, GSAM or an affiliate thereof is the investment adviser, administrator and/or distributor.
1	Each Trustee may be contacted by writing to the Trustee, c/o Goldman Sachs, One New York Plaza, 37th 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, 2004, the Trust consisted of 57 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 of America): 1-800-292-4726

19

 GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND

Trustees and Officers (Unaudited) (continued)

Officers of the Trust*

		Term of
		Office and
	Position(s) Held	Length of
Name, Address And Age	With the Trust	Time Served1	Principal Occupation(s) 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).
James A. Fitzpatrick 4900 Sears Tower Chicago, IL 60606 Age: 44	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: 42	Vice President	Since 2001	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). Vice President—Goldman Sachs Mutual Fund Complex (registered investment companies). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies) (December 2002-May 2004).
John M. Perlowski 32 Old Slip New York, NY 10005 Age: 40	Treasurer	Since 1997	Managing Director, Goldman Sachs (November 2003-Present) and Vice President, Goldman Sachs (July 1995-November 2003). Treasurer—Goldman Sachs Mutual Fund Complex (registered investment companies).
Howard B. Surloff One New York Plaza 37th Floor New York, NY 10004 Age: 39	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.

20

GOLDMAN SACHS VARIABLE INSURANCE TRUST MID CAP VALUE FUND 

Goldman Sachs Variable Insurance Trust Mid Cap Value Fund — Tax Information (Unaudited)

For the year ended December 31, 2004, 20.06% of the dividends paid from net investment company taxable income by the Fund qualify for the dividends received deduction available to corporations.

Pursuant to Section 852 of the Internal Revenue Code, the Fund designates $46,176,387 as capital gain dividends paid during the year ended December 31, 2004.

21

TRUSTEES	OFFICERS
Ashok N. Bakhru, Chairman	Kaysie P. Uniacke, President
John P. Coblentz, Jr.	James A. Fitzpatrick, Vice President
Patrick T. Harker	James A. McNamara, Vice President
Mary Patterson McPherson	John M. Perlowski, Treasurer
Alan A. Shuch	Howard B. Surloff, Secretary
Wilma J. Smelcer
Richard P. Strubel
Kaysie P. Uniacke
GOLDMAN, SACHS & CO. Distributor and Transfer Agent
GOLDMAN SACHS ASSET MANAGEMENT, L.P. Investment Adviser
Visit our internet address: www.gs.com/funds to obtain the most recent month-end returns.
The reports concerning the Fund included in this shareholder report may contain certain forward-looking statements about the factors that may affect the performance of the Fund in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Fund, 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 Fund. 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.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (i) without charge, upon request by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders); and (ii) on the Securities and Exchange Commission Web site at http://www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“the Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the Commission’s website at http://www.sec.gov. The Fund’s Form N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Form N-Q may be obtained upon request and without charge by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders).
This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus for the Fund. Please consider the Fund’s objectives, risks and charges and expenses, and read the Prospectus carefully before investing.
Holdings are as of December 31, 2004 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 Fund is subject to the risk of rising and falling stock prices. In recent years, the U.S. stock market has experienced substantial price volatility.
	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: Mid Cap Value Fund.
© Copyright 2005 Goldman, Sachs & Co. All rights reserved. Date of first use: February 18, 2005
VITMIDCAPAR

Goldman

Sachs Variable Insurance Trust

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

International Equity Fund

Annual Report

December 31, 2004

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, 2004.

Market Overview

U.S. investors in international equity markets were rewarded with strong returns in 2004 given the weakening dollar and significant returns in Asia (excluding Japan). The performance of international sectors diverged dramatically over the past year. Higher risk areas, especially the Information Technology sector, performed poorly as interest rates rose and corporate earnings growth moderated. However, Information Technology was one of the strongest performing sectors at the end of 2004. The Healthcare sector demonstrated significant weakness in the latter part of 2004. This was due to increased regulatory risk and the threat of generic drugs to pharmaceutical companies.

In contrast, the Energy sector dramatically outperformed the market over the fiscal year. This was a result of the significant rise in the price of oil in 2004. The international equity markets gained momentum in November and December of 2004, on the back of a drop in energy prices from their record high levels and a clear victor in the U.S. Presidential election.

Investment Objective

The Fund seeks long-term capital appreciation.

Portfolio Composition

Top 10 Portfolio Holdings as of December 31, 2004*

			% of Net
Company	Country	Business	Assets
Vodafone Group PLC	United Kingdom	Telecommunication Services		5.1	%
Nestle SA	Switzerland	Food, Beverage & Tobacco		3.6
Total Fina Elf SA Class B	France	Energy		3.5
GlaxoSmithKline PLC	United Kingdom	Pharmaceuticals & Biotechnology		3.4
Novartis AG	Switzerland	Pharmaceuticals & Biotechnology		3.2
Zurich Financial Services AG	Switzerland	Insurance		3.0
Banco Bilbao Vizcaya Argentaria SA	Spain	Banks		3.0
WPP Group PLC	United Kingdom	Media		3.0
LVMH Moet Hennessy Louis Vuitton SA	France	Consumer Durables & Apparel		2.9
Hyundai Motor Co. GDR	South Korea	Automobiles & Components		2.6

* Opinions expressed in this report represent our present opinions only. Reference to individual securities should not be construed as a commitment that such securities will be retained in the Fund. From time to time, the Fund may change the individual securities it holds, the number or types of securities held and the markets in which it invests. 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.

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 GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Shareholder Letter (continued)

Performance Review

Over the one-year period that ended December 31, 2004, the Fund generated a cumulative total return of 13.48%. 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 20.70%.

In 2004, we saw a continued trend where larger, higher quality companies that weathered the difficult markets of 2001 and 2002 did not participate in the market rally of 2003 and 2004 as much as their more cyclical, smaller, highly leveraged peers. Our stock selection process, which has a bias towards high quality companies that should outperform over the market cycle, was therefore a leading contributor to the Fund’s underperformance. In addition, the Fund’s underweight to the strong performing Energy sector hurt results.

On the stock specific level, Yukos, Russia’s largest oil company, was the largest detractor from performance during the reporting period. We originally established a position in Yukos due to its attractive valuation and strong production growth prospects. We believed that Yukos possessed extensive reserves and had an excellent growth profile. These qualities made it a more attractive investment than a number of the major western oil companies that had been suffering from declining reserves, poor reserve replacement ratios, and rising production costs. Unfortunately, the Russian government’s ongoing attempts to extract large tax penalties from the company caused the position to detract meaningfully from performance. As part of this campaign, the Russian authorities froze Yukos’ assets, making it difficult for the company to settle this liability. In November of 2004, the already weak shares of Yukos traded down significantly after the company received additional tax claims totaling $9 billion. This brought Yukos’ total tax liability to $14 billion, a value greater than the approximate market value of the company. In light of this news, we accelerated our liquidation process and the stock is no longer held in the portfolio.

Another stock that hurt results was Nokia Corp., the world’s largest mobile telephone manufacturer. The competitive environment for Nokia products has become more intense. Nokia’s ability to execute its business strategy also deteriorated, resulting in lower margins and a reduced ability to sustain its historically high margins relative to the industry. We eliminated the position in the third quarter of 2004 as we believed the company’s earnings power had been impaired relative to its historical achievements and that its fair value was below the then current market price.

Conversely, Esprit Holdings Ltd., a Hong Kong-based clothing manufacturer, outperformed the market as it announced better-than-expected earnings for the duration of the year. Esprit demonstrated robust growth in the German market and began to show signs later in the year of penetration in the U.S.

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 19, 2005

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GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND 

Performance Summary

December 31, 2004

The following graph shows the value as of December 31, 2004, 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 (MSCI) Europe, Australasia and Far East (EAFE) Index (“MSCI EAFE Index”) (unhedged) (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. Performance also would have been reduced had expense limitations not been in effect. 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, 2004.

	Since Inception	Five Years	One Year
Average Annual Total Return Through December 31, 2004
International Equity Fund (commenced January 12, 1998)	4.30%	-3.25%	13.48%

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 GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Statement of Investments

December 31, 2004

Shares		Description	Value
Common Stocks – 99.0%
France – 15.9%
	32,097	Cap Gemini SA* (Software & Services)	$	1,023,965
	26,084	L’Oreal SA (Household & Personal Products)		1,971,396
	41,409	LVMH Moet Hennessy Louis Vuitton SA (Consumer Durables & Apparel)		3,159,017
	77,531	Pages Jaunes*@ (Media)		1,873,424
	44,727	PSA Peugeot Citroen (Automobiles & Components)		2,825,855
	37,733	Schneider Electric SA (Capital Goods)		2,614,231
	17,603	Total Fina Elf SA Class B@ (Energy)		3,839,536
				17,307,424
Germany – 6.0%
	23,805	Bayerische Motoren Werke (BMW) AG@ (Automobiles & Components)		1,070,430
	44,534	Deutsche Boerse AG* (Diversified Financials)		2,673,131
	9,591	SAP AG (Software & Services)		1,693,905
	13,624	Schering AG (Pharmaceuticals & Biotechnology)		1,010,507
				6,447,973
Greece – 1.3%
	51,980	OPAP SA (Hotels Restaurants & Leisure)		1,430,833
Hong Kong – 7.0%
	290,320	Dah Sing Banking Group Ltd. (Banks)		601,347
	147,713	Dah Sing Financial Group (Banks)		1,146,873
	408,000	Esprit Holdings Ltd. (Retailing)		2,465,927
	604,000	Techtronic Industries Co. Ltd. (Consumer Durables & Apparel)		1,320,292
	294,000	Wing Hang Bank Ltd. (Banks)		2,066,035
				7,600,474
Italy – 2.5%
	575,158	Banca Intesa SpA (Banks)		2,752,407
Japan – 13.2%
	67,400	Credit Saison Co. Ltd. (Diversified Financials)		2,459,224
	77,500	Konica Minolta Holdings, Inc. (Technology Hardware & Equipment)		1,031,808
	134	Millea Holdings, Inc. (Insurance)		1,991,603
	222,000	Mitsui Fudosan Co. Ltd. (Real Estate)		2,696,843
	5,000	OBIC Co. Ltd. (Software & Services)		990,812
	94,000	RICOH Co. Ltd.@ (Technology Hardware & Equipment)		1,816,706
	46,100	Shin-Etsu Chemical Co. Ltd. (Materials)		1,890,661
	17,780	USS Co. Ltd. (Retailing)		1,489,242
				14,366,899
Netherlands – 4.9%
	62,335	European Aeronautic Defence & Space Co.@ (Capital Goods)		1,801,270
	58,581	ING Groep NV (Diversified Financials)		1,764,353
	57,634	VNU NV (Media)		1,692,739
				5,258,362
Norway – 2.1%
	249,092	Telenor ASA (Telecommunication Services)		2,254,325
Russia – 0.6%
	4,800	Mobile Telesystems ADR (Telecommunication Services)		664,848
South Korea – 3.7%
	108,830	Hyundai Motor Co. GDR†@ (Automobiles & Components)		2,829,580
	1,000	Samsung Electronics Co. Ltd. GDR† (Semiconductors & Semiconductor Equipment)		219,000
	4,400	Samsung Electronics Co. Ltd. GDR (Semiconductors & Semiconductor Equipment)		965,519
				4,014,099
Spain – 3.0%
	184,423	Banco Bilbao Vizcaya Argentaria SA (Banks)		3,257,521
Sweden – 4.6%
	559,588	Skandia Forsakrings AB (Insurance)		2,773,779
	704,627	Telefonaktiebolaget LM Ericsson* (Technology Hardware & Equipment)		2,210,956
				4,984,735
Switzerland – 11.8%
	52,890	Credit Suisse Group (Diversified Financials)		2,215,789
	14,873	Nestle SA (Food, Beverage & Tobacco)		3,868,525
	68,225	Novartis AG (Pharmaceuticals & Biotechnology)		3,421,714
	19,664	Zurich Financial Services AG (Insurance)		3,263,091
				12,769,119
Taiwan – 1.5%
	176,363	Hon Hai Precision Industry Co. Ltd.@ (Technology Hardware & Equipment)		1,663,103

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

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GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND 

Shares		Description	Value
Common Stocks – (continued)
United Kingdom – 20.9%
	102,671	British Sky Broadcasting Group PLC (Media)	$	1,105,390
	38,926	Carnival PLC (Hotels Restaurants & Leisure)		2,369,900
	155,445	GlaxoSmithKline PLC (Pharmaceuticals & Biotechnology)		3,641,905
	143,116	HBOS PLC (Banks)		2,321,231
	35,864	Man Group PLC (Diversified Financials)		1,009,941
	237,220	Prudential PLC (Insurance)		2,052,123
	2,029,920	Vodafone Group PLC (Telecommunication Services)		5,511,257
	372,851	WM. Morrison Supermarket PLC (Food & Staples Retailing)		1,477,692
	295,395	WPP Group PLC (Media)		3,232,329
				22,721,768
TOTAL COMMON STOCKS
(Cost $87,758,027)				107,493,890

Principal		Interest			Maturity
Amount		Rate			Date		Value
Short-Term Obligation – 1.0%
State Street Bank & Trust Euro Time Deposit
$	1,100,000		2.19	%		01/03/2005
(Cost $1,100,000)							$	1,100,000
TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL
(Cost $88,858,027)							$	108,593,890

Shares		Description	Value
Securities Lending Collateral – 6.5%
	7,128,086	Boston Global Investment Trust – Enhanced Portfolio
(Cost $7,128,086)			$	7,128,086
TOTAL INVESTMENTS – 106.5%
(Cost $95,986,113)			$	115,721,976

	As a % of
	Net Assets
Common Stock Industry Classifications††
Automobiles & Components		6.2	%
Banks		11.2
Capital Goods		4.1
Consumer Durables & Apparel		4.1
Diversified Financials		9.3
Energy		3.5
Food & Staples Retailing		1.4
Food, Beverage & Tobacco		3.6
Hotels Restaurants & Leisure		3.5
Household & Personal Products		1.8
Insurance		9.3
Materials		1.7
Media		7.3
Pharmaceuticals & Biotechnology		7.4
Real Estate		2.5
Retailing		3.6
Semiconductors & Semiconductor Equipment		1.1
Software & Services		3.4
Technology Hardware & Equipment		6.2
Telecommunication Services		7.8
TOTAL COMMON STOCK		99.0	%

*	Non-income producing security.
@	All or a portion of security is on loan.
†	Securities are exempt from registration under rule 144A of the Securities Act of 1933. Under procedures approved by the Board of Trustees, such securities have been determined to be liquid by the Investment Adviser and may be resold, normally to qualified institutional buyers in transactions exempt from registration. Total market value of Rule 144A securities amounted to $3,048,580, which represent approximately 2.8% of net assets as of December 31, 2004.
††	Industry concentrations greater than one-tenth of one percent are disclosed.

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

Investment Abbreviations:
ADR	—	American Depositary Receipt
GDR	—	Global Depositary Receipt

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

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 GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Statement of Investments (continued)

December 31, 2004

ADDITIONAL INVESTMENT INFORMATION

FORWARD FOREIGN CURRENCY CONTRACTS — At December 31, 2004, the International Equity Fund had outstanding forward foreign currency exchange contracts, both to purchase and sell foreign currencies as follows:

							Unrealized
Open Forward Foreign Currency	Expiration		Value on		Current
Purchase Contracts	Date		Settlement Date		Value		Gain		Loss
Australian Dollar		01/28/2005	$	5,416,091	$	5,376,060	$	—	$	40,031
		03/16/2005		658,000		664,053		6,053		—
		03/16/2005		1,303,050		1,298,203		—		4,847
British Pounds		01/21/2005		4,510,930		4,665,652		154,722		—
		03/16/2005		1,978,000		1,953,865		—		24,135
Canadian Dollar		03/16/2005		1,326,984		1,310,501		—		16,483
Danish Krone		01/26/2005		813,036		828,664		15,628		—
Euro Currency		01/26/2005		902,775		921,589		18,814		—
		03/16/2005		1,956,089		1,988,359		32,270		—
Japanese Yen		01/31/2005		9,333,881		9,444,495		110,614		—
		03/16/2005		3,885,276		3,906,734		21,458		—
New Zealand Dollar		02/18/2005		245,347		249,401		4,054		—
Norwegian Krone		01/20/2005		780,108		784,314		4,206		—
		03/16/2005		2,672,188		2,694,474		22,286		—
Singapore Dollar		01/20/2005		896,988		904,447		7,459		—
Swedish Krona		03/16/2005		1,978,000		1,990,359		12,359		—
Swiss Franc		03/16/2005		667,000		672,232		5,232		—
TOTAL OPEN FORWARD FOREIGN CURRENCY PURCHASE CONTRACTS			$	39,323,743	$	39,653,402	$	415,155	$	85,496

							Unrealized
Open Forward Foreign Currency	Expiration		Value on		Current
Sale Contracts	Date		Settlement Date		Value		Gain		Loss
Australian Dollar		03/16/2005	$	3,292,000	$	3,353,643	$	—	$	61,643
British Pounds		03/16/2005		1,353,555		1,375,469		—		21,914
Canadian Dollar		03/16/2005		670,000		666,003		3,997		—
		03/16/2005		1,311,000		1,337,202		—		26,202
Euro Currency		03/16/2005		1,968,000		2,011,452		—		43,452
Japanese Yen		03/16/2005		1,315,000		1,343,120		—		28,120
Hong Kong Dollar		03/09/2005		5,654,463		5,653,981		482		—
Norwegian Krone		01/20/2005		2,391,033		2,452,084		—		61,051
		03/16/2005		668,000		677,177		—		9,177
Swedish Krona		03/16/2005		1,336,969		1,349,047		—		12,078
		03/18/2005		1,872,050		1,898,372		—		26,322
Swiss Franc		01/24/2005		4,807,699		4,906,087		—		98,388
		03/16/2005		3,979,860		3,999,175		—		19,315
TOTAL OPEN FORWARD FOREIGN CURRENCY SALE CONTRACTS			$	30,619,629	$	31,022,812	$	4,479	$	407,662

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

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GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND 

Statement of Assets and Liabilities

December 31, 2004

Assets:
Investment in securities, at value (identified cost $88,858,027)		$	108,593,890
Securities lending collateral, at value			7,128,086
Cash			420
Foreign currencies, at value (identified cost $57,177)			57,178
Receivables:
	Forward foreign currency exchange contracts		419,634
	Dividends and interest, at value		183,909
	Due from brokers on closed but unsettled futures		60,520
	Reimbursement from adviser		20,073
	Securities lending income		9,262
	Fund shares sold		2,826
Total assets			116,475,798
Liabilities:
Payables:
	Payable upon return of securities loaned		7,128,086
	Forward foreign currency exchange contracts		493,158
	Amounts owed to affiliates		93,579
	Fund shares repurchased		49,368
Accrued expenses			87,575
Total liabilities			7,851,766
Net Assets:
Paid-in capital			144,318,337
Accumulated undistributed net investment income			420,026
Accumulated net realized loss on investment, futures and foreign currency related transactions			(55,785,350	)
Net unrealized gain on investments and translation of assets and liabilities denominated in foreign currencies			19,671,019
NET ASSETS		$	108,624,032
Total shares of beneficial interest outstanding, par value $0.001 (unlimited shares authorized)			10,224,154
Net asset value, offering and redemption price per share		$	10.62

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

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 GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Statement of Operations

For the Year Ended December 31, 2004

Investment income:
Dividends(a)		$	1,832,321
Interest (including securities lending income of $143,509)			154,767
Total income			1,987,088
Expenses:
Management fees			1,019,839
Custody and accounting fees			211,734
Professional fees			42,165
Printing fees			41,236
Transfer agent fees			40,794
Trustee fees			14,439
Other			2,783
Total expenses			1,372,990
Less — expense reductions			(149,532	)
Net expenses			1,223,458
NET INVESTMENT INCOME			763,630
Realized and unrealized gain (loss) on investment, futures and foreign currency related transactions:
Net realized gain from:
	Investment transactions		5,838,405
	Futures transactions		35,157
	Foreign currency related transactions		211,223
Net change in unrealized gain (loss) on:
	Investments		6,018,606
	Translation of assets and liabilities denominated in foreign currencies		(122,334	)
Net realized and unrealized gain on investment, futures and foreign currency related transactions			11,981,057
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		$	12,744,687

(a)   Foreign taxes withheld on dividends were $217,110.

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

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GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND 

Statements of Changes in Net Assets

	For the Year			For the Year
	Ended			Ended
	December 31,			December 31,
	2004			2003
From operations:
Net investment income	$	763,630		$	84,538
Net realized gain on investment, futures and foreign currency related transactions		6,084,785			463,753
Net change in unrealized gain on investments and translation of assets and liabilities denominated in foreign currencies		5,896,272			7,435,932
Net increase in net assets resulting from operations		12,744,687			7,984,223
Distributions to shareholders:
From net investment income		(1,154,644	)		(641,177	)
From share transactions:
Proceeds from sales of shares		5,062,404			3,347,815
Proceeds in connection with merger		—			85,111,633
Reinvestment of dividends and distributions		1,154,644			641,177
Cost of shares repurchased		(15,975,317	)		(2,865,383	)
Net increase (decrease) in net assets resulting from share transactions		(9,758,269	)		86,235,242
TOTAL INCREASE		1,831,774			93,578,288
Net assets:
Beginning of year		106,792,258			13,213,970
End of year	$	108,624,032		$	106,792,258
Accumulated undistributed (distributions in excess of) net investment income	$	420,026		$	(366,918	)
Summary of share transactions:
Shares sold		520,639			427,150
Shares issued in connection with merger		—			9,311,989
Shares issued on reinvestment of dividends and distributions		111,462			71,006
Shares repurchased		(1,676,423	)		(364,591	)
NET INCREASE (DECREASE)		(1,044,322	)		9,445,554

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

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GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND 

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Year

			Income (loss) from																															Ratios assuming no
			investment operations								Distributions to shareholders																							expense reductions
					Net																											Ratio of		Ratio of		Ratio of
	Net asset				realized												From						Net asset					Net assets		Ratio of		net investment		total		net investment
	value,		Net		and			Total from			From net			From tax			net						value,					at end of		net expenses		income		expenses		income (loss)			Portfolio
	beginning		investment		unrealized			investment			investment			return of			realized			Total			end of		Total			year		to average		to average		to average		to average			turnover
	of year		income(b)		gain (loss)			operations			income			capital			gain			distributions			year		return(a)			(in 000s)		net assets		net assets		net assets		net assets			rate
For the Years ended December 31,
2004	$	9.48	$	0.07	$	1.18		$	1.25		$	(0.11	)	$	—		$	—		$	(0.11	)	$	10.62		13.48%		$	108,624		1.20%		0.75%		1.35%		0.60%			63%
2003		7.25		0.04		2.53			2.57			(0.34	)		—			—			(0.34	)		9.48		35.49			106,792		1.37		0.49		2.60		(0.74	)		49
2002		8.99		0.03		(1.68	)		(1.65	)		(0.09	)		—			—			(0.09	)		7.25		(18.34	)		13,214		1.46		0.32		2.96		(1.18	)		86
2001		11.78		0.05		(2.68	)		(2.63	)		(0.09	)		(0.04	)		(0.03	)		(0.16	)		8.99		(22.26	)		17,773		1.35		0.47		2.05		(0.23	)		76
2000		14.47		0.05		(1.99	)		(1.94	)		—			—			(0.75	)		(0.75	)		11.78		(13.19	)		29,261		1.34		0.37		1.99		(0.28	)		70

(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.

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

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GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND 

Notes to Financial Statements

December 31, 2004

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 the Goldman Sachs International Equity Fund (the “Fund”). The Fund is a diversified portfolio 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 Fund. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts. Actual results could differ from those estimates.

A. Investment Valuation — Investments in securities traded on a foreign securities exchange are valued daily at fair value determined by an independent service (if available) under valuation procedures approved by the Board of Trustees consistent with applicable regulatory guidance. The independent service takes into account multiple factors including, but not limited to, movements in the U.S. securities markets, certain depositary receipts, futures contracts and foreign currency exchange rates.

     Investments in securities traded on a U.S. securities exchange or the NASDAQ system or for investments in securities traded on a foreign securities exchange for which an independent service is not available are valued daily at their last sale price 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. Investments in investment companies are valued at the net asset value per share on the valuation date. 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 or are deemed inaccurate by the Investment Adviser are valued at fair value using methods approved by the Trust’s Board of Trustees.

     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 which are reduced by any amounts reclaimable by the Fund, where applicable. Interest income is recorded on the basis of interest accrued, premium amortized and discount accreted. In addition, it is the Fund’s policy to accrue for estimated capital gains taxes on foreign securities held by the Fund which are subject to such taxes.

11

 GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Notes to Financial Statements (continued)

December 31, 2004

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

C. Federal Taxes — It is the Fund’s policy to comply with the requirements of the Internal Revenue Code (the “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 Federal income tax rules. Therefore, the source of the Fund’s distributions may be shown in the accompanying financial statements as either from net investment income or net realized gain on investment transactions, or from paid-in-capital.

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

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

F. Segregation Transactions — As set forth in the prospectus, the Fund may enter into certain 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 Fund is required to segregate liquid assets on the accounting records equal to or greater than the market value of the corresponding transactions.

G. Forward Foreign Currency Exchange Contracts — The Fund may enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date as a hedge or cross-hedge against either specific transactions or portfolio positions. The Fund may also purchase and sell 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 Fund records 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.

     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, 2004, the Fund had segregated sufficient cash and/or securities to cover any commitments under these contracts.

12

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND 

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

H. Futures Contracts — The Fund 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 Fund is required to deposit with a broker, or the Fund’s custodian bank on behalf of the 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 Fund 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 Fund realizes a gain or loss which is reported in the Statement of Operations.

     The use of futures contracts involve, to varying degrees, elements of market and counterparty risk which may exceed the amounts recognized in the Statement 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 Fund’s strategies and potentially result in a loss.

3. AGREEMENTS

Pursuant to the Investment Management Agreement (the “Agreement”), Goldman Sachs Asset Management International (“GSAMI”), an affiliate of the Investment Management Division of Goldman, Sachs & Co. (“Goldman Sachs”), serves as the investment adviser to the Fund. Under the Agreement, GSAMI, subject to the general supervision of the Trust’s Board of Trustees, manages the Fund’s portfolios.

     As compensation for the services rendered pursuant to the Agreement, the assumption of the expenses related thereto and administering the Fund’s business affairs, including providing facilities, GSAMI is entitled to a fee (“Management Fee”) computed daily and payable monthly, equal to an annual percentage rate of 1.00% of the Fund’s average daily net assets.

     The investment 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) to the extent that such expenses exceed, on an annual basis, 0.16% of the average daily net assets of the Fund. Such expense reimbursements, if any, are computed daily and paid monthly. In addition, the Fund is not obligated to reimburse GSAMI for prior fiscal year expense reimbursements, if any. For the year ended December 31, 2004, GSAMI reimbursed approximately $149,200.

     In addition, the Fund has entered into certain offset arrangements with the custodian resulting in a reduction in the Fund’s expenses. For the year ended December 31, 2004, custody fees were reduced by approximately $300.

     Goldman Sachs also serves as the transfer agent of the Fund for a fee. The 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 the Fund. Goldman Sachs serves as the distributor of the Fund’s shares at no cost to the Fund.

     At December 31, 2004, the amounts owed to affiliates were approximately $90,000 and $3,600 for Management and Transfer Agent fees, respectively.

4. PORTFOLIO SECURITIES TRANSACTIONS

The cost of purchases and proceeds of sales and maturities of long term securities for the year ended December 31, 2004, were $63,571,439 and $71,901,007, respectively. For the year ended December 31, 2004, Goldman Sachs earned approximately $4,600 of brokerage commissions from portfolio transactions, including futures transactions, executed on behalf of the Fund.

5. SECURITIES LENDING

Pursuant to exemptive relief granted by the SEC and the terms and conditions contained therein, the Fund may lend its securities through its securities lending agent, Boston Global Advisers (“BGA”) — a wholly owned subsidiary of Goldman

13

 GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Notes to Financial Statements (continued)

December 31, 2004

5. SECURITIES LENDING (continued)

Sachs, to certain qualified borrowers including Goldman Sachs. In accordance with the Fund’s securities lending procedures, 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 Fund bears the risk of delay on recovery or loss of rights in the collateral should the borrower of the securities fail financially.

     Both the Fund and BGA receive compensation relating to the lending of the Fund’s securities. The amount earned by the Fund for the year ended December 31, 2004, is reported parenthetically on the Statement of Operations. A portion of this amount, $4,897, represents compensation earned by the Fund from lending its securities to Goldman Sachs. For the year ended December 31, 2004, BGA earned $25,323 in fees as securities lending agent. At December 31, 2004, the Fund loaned securities having a market value of $6,776,511 collateralized by cash in the amount of $7,128,086. The Fund invests 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 of up to 0.10% of the average daily net assets of the Enhanced Portfolio. The Enhanced Portfolio invests in high quality money market instruments. The Fund bears the risk of incurring a loss from the investment of cash collateral due to either credit or market factors. At December 31, 2004, the amount payable to Goldman Sachs upon return of securities loaned is $54,000.

6. LINE OF CREDIT FACILITY

The Fund participates in a $350,000,000 committed, unsecured revolving line of credit facility. Under the most restrictive arrangement, the Fund must own securities having a market value in excess of 300% (400% prior to May 26, 2004) 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. This committed facility also requires a fee to be paid by the Fund based on the amount of the commitment that has not been utilized. During the year ended December 31, 2004, the Fund did not have any borrowings under this facility.

7. ADDITIONAL TAX INFORMATION

The tax character of distributions paid during the fiscal years ended December 31, 2004 and December 31, 2003 was as follows:

	For the year ended December 31,
	2004		2003
Distributions paid from:
Ordinary income	$	1,154,644	$	641,177
Total taxable distributions	$	1,154,644	$	641,177

14

GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND 

7. ADDITIONAL TAX INFORMATION (continued)

As of December 31, 2004, the components of accumulated earnings (losses) on a tax basis were as follows:

Undistributed ordinary income — net		$	322,933
Capital loss carryforward:*
	Expiring 2008		(17,055,611	)
	Expiring 2009		(27,159,909	)
	Expiring 2010		(8,409,296	)
	Expiring 2011		(609,034	)
Total capital loss carryforward			(53,233,850	)
Timing differences (post October losses)			(914,343	)
Unrealized gains — net			18,130,955
Total accumulated losses — net		$	(35,694,305	)

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

At December 31, 2004, the Fund’s aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes was as follows:

Tax cost	$	97,623,270
Gross unrealized gain		18,327,521
Gross unrealized loss		(228,815	)
Net unrealized security gain	$	18,098,706

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

8. CERTAIN RECLASSIFICATIONS

In order to present certain components of the Fund’s capital accounts on a tax basis, certain reclassifications have been recorded to the Fund’s accounts. The Fund reclassified $206,560 and $1,177,958 to paid-in capital and accumulated undistributed net investment income, respectively, from accumulated net realized loss on investment, futures and foreign currency related transactions. This reclassification has no impact on the net asset value of the Fund. Reclassifications result primarily from the difference in the tax treatment of foreign currency transactions, realized capital gain taxes and investments in passive foreign investment companies.

9. 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 International Equity Fund of Protective Investment Company by the Fund. The acquisition was completed on December 19, 2003 following the approval of the Protective Fund shareholders on December 9, 2003.

     Pursuant to the Protective Agreement, the assets and liabilities of the Protective International Equity Fund were transferred to the Fund in a tax-free exchange for shares of the Fund as follows:

					Acquired Fund’s
	Exchanged Shares		Value of		Shares Outstanding
Survivor/Acquired Fund	of Survivor Issued		Exchanged Shares		as of December 19, 2003
International Equity/ Protective International Equity		9,311,989	$	85,111,633		9,431,932

15

 GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Notes to Financial Statements (continued)

December 31, 2004

9. MERGERS AND REORGANIZATIONS (continued)

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 Fund’s unrealized appreciation (depreciation) and capital loss carryforwards.

										Survivor Fund’s
	Survivor Fund’s		Acquired Fund’s							Aggregate
	Aggregate		Aggregate		Acquired Fund’s					Net Assets
	Net Assets		Net Assets		Unrealized		Acquired Fund’s			immediately
	before		before		Appreciation/		Capital Loss			after
Survivor/Acquired Fund	acquisition		acquisition		(Depreciation)		Carryforward*			acquisition
International Equity/ Protective International Equity	$	18,015,399	$	85,111,633	$	8,640,456	$	(50,026,977	)	$	103,127,032

*  For U.S. federal income tax purposes, certain limitations may apply to the utilization of the Acquired Fund’s capital loss carryforwards.

16

Report of Independent Registered Public Accounting Firm

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

We have audited the accompanying statement of assets and liabilities of Goldman Sachs International Equity Fund (one of the funds comprising the Goldman Sachs Variable Insurance Trust) (the “Fund”), including the statement of investments, as of December 31, 2004, and the related statement 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 five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (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 consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2004, by correspondence with the custodian and others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Goldman Sachs International Equity Fund at December 31, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York

February 9, 2005

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 GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Fund Expenses (Unaudited) — Six Month Period Ended December 31, 2004

          As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

          The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2004 through December 31, 2004.

          Actual Expenses — The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account for this period.

          Hypothetical Example for Comparison Purposes — The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

          Please note that the expenses shown in the table are meant to highlight your ongoing costs only. As a shareholder of the Fund, you do not incur any transaction costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. The second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds whose shareholders may incur transaction costs.

						Expenses Paid
						for the
	Beginning		Ending Account			6 months
	Account Value		Value			ended
	7/1/04		12/31/04			12/31/04*
Actual	$	1,000	$	1,134.80		$	6.44
Hypothetical 5% return		1,000		1,019.11	+		6.09

*  Expenses are calculated using the Fund’s annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended December 31, 2004. Expenses are calculated by multiplying the annualized expense ratio by the average account value for such period; then multiplying the result by the number of days in the most recent fiscal half year; and then dividing that result by the number of days in the calendar year. Expense ratios for the most recent fiscal half year may differ from expense ratios based on one-year data in the Financial Highlights. The annualized net expense ratio for the period was 1.20%.

+  Hypothetical expenses are based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses.

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GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND 

Trustees and Officers (Unaudited)

Independent Trustees

				Number of
		Term of		Portfolios in
	Position(s)	Office and		Fund Complex	Other
Name,	Held with	Length of	Principal Occupation(s)	Overseen by	Directorships
Address and Age1	the Trust2	Time Served3	During Past 5 Years	Trustee4	Held by Trustee5
Ashok N. Bakhru Age: 62	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, Scholarship 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) (2000-2003). Chairman of the Board and Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
John P. Coblentz, Jr. Age: 63	Trustee	Since 2003	Partner, Deloitte & Touche LLP (June 1975-May 2003). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Patrick T. Harker Age: 46	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Mary P. McPherson Age: 69	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
Wilma J. Smelcer Age: 55	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-April 2004). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	Lawson Products Inc. (distributor of industrial products).
Richard P. Strubel Age: 65	Trustee	Since 1987	Vice Chairman and Director, Unext, Inc. (provider of educational services via the internet) (2003-Present); President, COO and Director, Unext, Inc. (1999-2003); 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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	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).

19

 GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND

Trustees and Officers (Unaudited) (continued)

Interested Trustees

				Number of
		Term of		Portfolios in
	Position(s)	Office and		Fund Complex	Other
Name,	Held with	Length of	Principal Occupation(s)	Overseen by	Directorships
Address and Age1	the Trust2	Time Served3	During Past 5 Years	Trustee4	Held by Trustee5
*Alan A. Shuch Age: 55	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). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies).	63	None
*Kaysie P. Uniacke Age: 43	Trustee & President	Since 2001 Since 2002	Managing Director, GSAM (1997-Present). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies). President—Goldman Sachs Mutual Fund Complex (2002- Present) (registered investment companies). Assistant Secretary—Goldman Sachs Mutual Fund Complex (1997-2002) (registered investment companies).	63	None

*	These persons are considered to be “Interested Trustees” because they hold positions with Goldman Sachs and own securities issued by The Goldman Sachs Group, Inc. Each Interested Trustee holds comparable positions with certain other companies of which Goldman Sachs, GSAM or an affiliate thereof is the investment adviser, administrator and/or distributor.
1	Each Trustee may be contacted by writing to the Trustee, c/o Goldman Sachs, One New York Plaza, 37th 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, 2004, the Trust consisted of 57 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 of America): 1-800-292-4726

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GOLDMAN SACHS VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND 

Officers of the Trust* (Unaudited)

		Term of
		Office and
	Position(s) Held	Length of
Name, Address And Age	With the Trust	Time Served1	Principal Occupation(s) 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).
James A. Fitzpatrick 4900 Sears Tower Chicago, IL 60606 Age: 44	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: 42	Vice President	Since 2001	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). Vice President—Goldman Sachs Mutual Fund Complex (registered investment companies). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies) (December 2002-May 2004).
John M. Perlowski 32 Old Slip New York, NY 10005 Age: 40	Treasurer	Since 1997	Managing Director, Goldman Sachs (November 2003-Present) and Vice President, Goldman Sachs (July 1995-November 2003). Treasurer—Goldman Sachs Mutual Fund Complex (registered investment companies).
Howard B. Surloff One New York Plaza 37th Floor New York, NY 10004 Age: 39	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 International Equity Fund — Tax Information (Unaudited)

For the 2004 tax year, the Fund has elected to pass through a credit for taxes paid to foreign jurisdiction. During the year ended December 31, 2004, the Fund paid distributions of $0.1139 per share, all of which was attributable to qualified passive income. The total amount of foreign taxes paid by the Fund was $0.0222 per share. The country-by-country components of these totals, reflected as a percentage of total distributions and foreign taxes paid, are provided below.

	Source of Income %		Foreign Tax Paid %
Bermuda		2.17%		0.00%
Finland		1.98%		3.60%
France		9.96%		16.67%
Germany		1.79%		3.60%
Greece		2.35%		0.00%
Hong Kong		4.08%		0.00%
Ireland		2.23%		0.00%
Italy		1.86%		3.60%
Japan		3.34%		3.15%
Netherlands		9.16%		2.25%
Norway		1.11%		2.25%
Russia		1.18%		2.25%
Singapore		1.24%		3.15%
South Korea		5.01%		10.36%
Spain		1.86%		3.60%
Sweden		0.87%		1.80%
Switzerland		2.35%		4.50%
Taiwan		0.19%		0.00%
Thailand		0.00%		9.01%
United Kingdom		16.52%		30.21%
United States		30.75%		0.00%
TOTAL		100.00%		100.00%

21

TRUSTEES	OFFICERS
Ashok N. Bakhru, Chairman	Kaysie P. Uniacke, President
John P. Coblentz, Jr.	James A. Fitzpatrick, Vice President
Patrick T. Harker	James A. McNamara, Vice President
Mary Patterson McPherson	John M. Perlowski, Treasurer
Alan A. Shuch	Howard B. Surloff, Secretary
Wilma J. Smelcer
Richard P. Strubel
Kaysie P. 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 to obtain the most recent month-end returns.
The reports concerning the Fund included in this shareholder report may contain certain forward-looking statements about the factors that may affect the performance of the Fund in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Fund, 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 Fund. 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.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (i) without charge, upon request by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders); and (ii) on the Securities and Exchange Commission Web site at http://www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“the Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the Commission’s website at http://www.sec.gov. The Fund’s Form N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Form N-Q may be obtained upon request and without charge by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders).
This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus for the Fund. Please consider the Fund’s objectives, risks and charges and expenses, and read the Prospectus carefully before investing.
Holdings are as of December 31, 2004 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 Fund is subject to the risk of rising and falling stock prices.
Emerging markets securities are volatile. They are subject to substantial currency fluctuations and sudden economic and political developments. At times, the Goldman Sachs Variable Insurance Trust 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 the fund to greater risks than if the fund’s assets were not geographically concentrated.
	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: International Equity Fund.
© Copyright 2005 Goldman, Sachs & Co. All rights reserved. Date of first use: February 18, 2005
VITINTLAR

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”).
(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)

	2004		2003		Description of Services Rendered
Audit Fees:
• Ernst & Young LLP (“E&Y”)	$	112,000	$	115,000	Financial statement audits
Audit-Related Fees
• E&Y	$	0	$	42,000	Accounting consultations and reviews of registration statements in connection with fund mergers
Tax Fees
• E&Y	$	28,400	$	28,400	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

	2004			2003	Description of Services Rendered
Audit-Related Fees
• E&Y	$	0	$	0
Tax Fees
• E&Y	$	0	$	0
All Other Fees
• E&Y	$	0	$	6,000	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, 2004 and December 31, 2003 were approximately $28,400 and $70,400, 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, 2004 and December 31, 2003 were approximately $34.5 million and $30.9 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. SCHEDULE OF INVESTMENTS

Schedule of Investments is included as part of the Report to Shareholders filed under Item 1.

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

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees.

ITEM 11. 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 date 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1)		Goldman Sachs Variable Insurance Trust’s Code of Ethics for Principal Executive and Senior Financial officers is incorporated by reference to Exhibit 11(a)(1) of the Registrant’s Form N-CSR filed on March 8, 2004 (accession number 0000950123-04-002976)
(a)(2)	Exhibit 99.CERT     Exhibit 99.906CERT	Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith   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

/s/ Kaysie Uniacke

By: Kaysie Uniacke

Chief Executive Officer of

Goldman Sachs Variable Insurance Trust

Date: February 24, 2005

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

/s/ Kaysie Uniacke

By: Kaysie Uniacke

Chief Executive Officer of

Goldman Sachs Variable Insurance Trust

Date: February 24, 2005

/s/ John M. Perlowski

By: John M. Perlowski

Chief Financial Officer of

Goldman Sachs Variable Insurance Trust

Date: February 24, 2005