G O L D M A N  S A C H S  H I G H  Y I E L D  F U N D

Market Review

Dear Shareholder:

During the period under review, fixed income securities posted strong results. This was in sharp contrast to the negative returns generated by the global equity markets.

The U.S. Economy Stumbles

In our last report to shareholders, we pointed out that economic growth in the U.S. was beginning to moderate. Since that time, we’ve seen economic activity decline sharply. By the fourth quarter of 2000, many financial and economic indicators suggested an increasing probability of a recession. The most significant signs of moderation included weak production data, higher unemployment claims, and lower consumer confidence. This triggered the Federal Reserve Board (the “Fed”) to switch gears and officially move from a “tightening” to an “easing” bias.

In January 2001, the Fed began aggressively taking steps to ward off a recession — beginning with an unexpected 50 basis point interest rate cut on January 3rd, between its regularly scheduled meeting. The Fed followed up with three additional 50 basis point cuts during the reporting period, the last of which was another inter-meeting move in mid-April. This series of four rate cuts in less than four months, constituting 200 basis points in total, demonstrates the Fed’s willingness to stimulate economic growth.

The Bond Market Excels

During most of the reporting period, bond prices in general rose, as interest rates declined. The growing demand for bonds was also a positive, as many investors abandoned the faltering stock market in favor of these “safer havens.” One of the few sectors of the market that initially faltered was corporate bonds—in particular high yield bonds. The prospect for slower economic growth and an increase in defaults caused the price of these bonds to decline during the fourth quarter. This was exacerbated by heavy outflows from high yield mutual funds and institutional investors. However, the corporate bond market reversed course in January 2001, spurred on by the Fed’s interest rate cuts. Investors flocked back into the sector, chasing what had been historically cheap levels.

As always, we appreciate your support and we look forward to serving your investment needs in the years to come.

Sincerely,
David B. Ford Co-Head, Goldman Sachs Asset Management	David W. Blood Co-Head, Goldman Sachs Asset Management
May 9, 2001

G O L D M A N  S A C H S  H I G H  Y I E L D  F U N D

What Distinguishes Goldman Sachs’
Fixed Income Investing Process?

At Goldman Sachs Asset Management, the goal of our fixed income investment process is to provide consistent, strong performance by actively managing our portfolios within a research-intensive, risk-managed framework.

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G O L D M A N  S A C H S  H I G H  Y I E L D  F U N D

Fund Basics
as of April 30, 2001

P E R F O R M A N C E   R E V I E W
October 31, 2000– April 30, 2001	Fund Total Return (based on NAV)1	30-Day Standardized Yield2		Lehman High Yield Bond Index3
Class A	2.86%	10.16%		2.82%
Class B	2.48	9.89		2.82
Class C	2.48	9.89		2.82
Institutional	3.06	11.05		2.82
Service	2.93	N/A		2.82
1  The net asset value represents the net assets of the Fund (ex-dividend) divided by the total number of net shares outstanding. The Fund’s performance reflects the reinvestment of dividends and other distributions. 2  The 30-Day Standardized Yield of the Fund is calculated by dividing the net investment income per share (as defined by securities industry regulations) earned by the Fund over a 30-day period (ending on the stated month-end date) by the maximum public offering price per share of the Fund on the last day of the period. This number is compounded semiannually and then annualized. This yield does not necessarily reflect income actually earned and distributed by the Fund and, therefore, may not be correlated with the dividends or other distributions paid to shareholders. 3  The Lehman Brothers High Yield Bond Index figures do not reflect any fees or expenses. Investors cannot invest directly in the Index.
S TA N D A R D I Z E D  A N N U A L  T O T A L  R E TU R N S 4
For the period ending 3/31/01	Class A	Class B	Class C	Institutional	Service
One Year	–3.26%	–4.40%	–0.37%	1.66%	1.16%
Since Inception	1.89	1.60	2.48	3.58	3.07
	(8/1/97)	(8/1/97)	(8/15/97)	(8/1/97)	(8/1/97)
4  The Standardized Total Returns are average annual returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at net asset value. These returns reflect a maximum initial sales charge of 4.5% for Class A shares, the assumed deferred sales charge for Class B shares (5% maximum declining to 0% after six years) and the assumed deferred sales charge for Class C shares (1% if redeemed within 12 months of purchase). Because Institutional and Service shares do not involve sales charges, such charges have not been applied to their Standardized Total Returns.
Total return figures represent past performance and do not indicate future results, which will vary. The investment return and principal value of an investment will fluctuate and, therefore, an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance reflects expense limitations in effect. In their absence, performance would be reduced.
T O P  1 0  H O L D I N G S  A S  O F  4/ 3 0/ 0 1 5
Company	Line of Business			% of Portfolio
Nextel Communications, Inc.	Telecommunications– Cellular			3.7%
Crown Castle International Corp.	Media–Non-Cable			2.7
Charter Communications Holdings LLC	Media–Cable			2.6
Telewest Communications PLC	Media–Cable			2.4
Riverwood International Corp.	Paper			2.2
Allied Waste North America, Inc.	Environmental			1.9
CSC Holdings, Inc.	Media–Cable			1.5
McLeodUSA, Inc.	Telecommunications			1.5
Fisher Scientific International, Inc.	Consumer Cyclicals			1.5
Avecia Group PLC	Chemicals			1.4
Credit Allocation:          AAA 0.8%    A 1.6%	BBB 1.7%  BB 9.9%  B 76.7%  CCC/NR  9.3%
5  The Fund is actively managed and, as such, its composition may differ over time.

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G O L D M A N  S A C H S  H I G H  Y I E L D  F U N D

Portfolio Results

Dear Shareholder:

We are pleased to report on the performance of the Goldman Sachs High Yield Fund for the six-month period that ended April 30, 2001.

Performance Review

Over the six-month reporting period that ended April 30, 2001, the Fund’s A, B, C, Institutional and Service share classes generated cumulative total returns, at net asset value, of 2.86%, 2.48%, 2.48%, 3.06% and 2.93%, respectively. These figures compared favorably to the 2.82% total return of the Fund’s benchmark, the Lehman High Yield Bond Index.

High Yield Market

The reporting period began on a negative note, as November 2000 was one of the worst months for the high yield market since 1980. Investors reacted negatively to the combination of election uncertainties, fourth quarter outlook revisions, and the threat of a possible hard landing for the U.S. economy. Then, in December, high yield bonds bounced back from their lows. The market’s improved tone forced some short covering, which accelerated the price recovery. As usual, higher quality, more liquid issues led the rally.

     The market continued to rebound during much of the first quarter of 2001. January was a standout month, as high yield bonds registered their second best month ever according to Merrill Lynch. Spurred on by the early 50 basis point interest rate cut by the Federal Reserve Board (the “Fed”), investors flocked into the market, chasing what had been historically cheap levels. While February’s returns were more modest, high yield bonds remained resilient, despite the third worst monthly performance for the NASDAQ. However, the market stumbled in March, due to the continued broad decline in the stock markets and a stream of corporate profit warnings. Telecom bonds sold off sharply amid deepening skepticism over the future of some of the newer start-up companies. With no immediate end in sight to the ballooning tech inventories, technology bonds also came under pressure. Despite this gloom, industrial company bonds continued to be sought after by investors.

     The high yield market ended the reporting period on a positive note, aided by the rebound in equities after the Fed again unexpectedly cut interest rates by 50 basis points in mid-April. In addition, first quarter conference calls from industrial companies suggested that there were some signs that demand was stabilizing, following the sharp inventory correction in the first quarter. However, the cut was too late to aid telecommunications bonds.

Investment Objective

The Fund seeks a high level of current income and may also consider the potential for capital appreciation. The Fund invests primarily in high yield, fixed income securities rated, at the time of investment, medium quality or non-investment grade.

Portfolio Composition

As of April 30, 2001, the Fund was diversified among 405 issues. Holdings in the top 10 companies represented 21.4% of the portfolio.

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G O L D M A N  S A C H S  H I G H  Y I E L D  F U N D

Throughout the reporting period, we maintained our strategy of investing using bottom-up credit analysis. Over the medium-term, we believe this can produce the best risk-adjusted returns. During this period, a number of investment grade companies such as Xerox, JC Penney and the Californian Electric Utilities found their way into the high yield market after experiencing liquidity crises. In most cases, bonds issued by these firms fell straight to distressed levels. Consequently, we have been wary of investing in these names without clear evidence of a stabilization in their operations. We continue to monitor the development of the emerging telecommunications sector, and have reduced our exposure accordingly. Conversely, the Fund added a number of new U.S. and European industrial names, as well as increasing our exposure to existing core positions.

Portfolio Highlights

• Nextel Communications, Inc. —Nextel is a major U.S. wireless operator. A slowdown in growth at Nextel caused its stock to plunge, with a residual negative effect on its bonds. However, we see Nextel as having established a valuable franchise with a sustainable balance sheet. We also believe it will continue to have the ability to meet its debt obligations on a timely basis. Consequently, we have used this period of weakness as an opportunity to add to our Nextel exposure.
• Charter Communications Holdings LLC —Charter is one of the largest U.S. cable operators. The firm recently purchased a number of cable properties from AT&T. Its management team is well-regarded, with an excellent track record of integrating acquisitions into the Charter fold — using what we believe to be an appropriate balance of debt and equity. We participated in two recent large bond issues from the company and continue to hold an overweight position.
• Grohe Holding GMBH —Grohe, a manufacturer of plumbing fixtures, is seeking to capitalize on its high-end European reputation to expand into the U.S. market. The firm was purchased as a classic leveraged buyout from the German family-owned business, BC Partners, one of Europe’s leading leverage buyout firms. The bond deal was priced cheaply during the market volatility that was taking place in November, and the bonds have subsequently rebounded strongly.

  Portfolio Outlook

  We expect the outlook for high yield bonds to remain mixed, with the market’s appetite for solid industrials undiminished and with telecom names increasingly shunned. We believe the shakeout in the telecom sector should continue for at least another quarter, absent a change in sentiment. The forward calendar, while growing, is biased towards relatively richly priced, higher quality companies. There remains a dearth of new, higher yielding single-B issuers, as new industrial issuers find their bond deals heavily oversubscribed.

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

  Goldman Sachs High Yield Investment Management Team

  May 9, 2001

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GOLDMAN SACHS HIGH YIELD FUND

Performance Summary

April 30, 2001 (Unaudited)

The following graph shows the value as of April 30, 2001, of a $10,000 investment made on August 1, 1997 (commencement of operations) in Class A shares (with the maximum sales charge of 4.5%) of the Goldman Sachs High Yield Fund. For comparative purposes, the performance of the Fund’s benchmark (the Lehman High Yield Bond 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 of Class B, Class C, Institutional and Service shares will vary from Class A due to differences in fees and loads.

High Yield Fund’s Lifetime Performance

Growth of a $10,000 Investment, Distributions Reinvested August 1, 1997 to April 30, 2001.

Average Annual Total Return through April 30, 2001	Since Inception	One Year	Six Months (a)
Class A (commenced August 1, 1997)
Excluding sales charges	3.18%	0.37%	2.86%
Including sales charges	1.92%	-4.20%	-1.82%
Class B (commenced August 1, 1997)
Excluding contingent deferred sales charges	2.41%	-0.37%	2.48%
Including contingent deferred sales charges	1.59%	-5.36%	-2.64%
Class C (commenced August 15, 1997)
Excluding contingent deferred sales charges	2.45%	-0.37%	2.48%
Including contingent deferred sales charges	2.45%	-1.37%	1.46%
Institutional Class (commenced August 1, 1997)	3.58%	0.76%	3.06%
Service Class (commenced August 1, 1997)	3.07%	0.27%	2.93%

(a) Not annualized.

GOLDMAN SACHS HIGH YIELD FUND

Statement of Investments

April 30, 2001 (Unaudited)

Principal Amount	Interest Rate		Maturity Date	Value
Corporate Bonds – 77.7%
Aerospace – 2.6%
Argo-Tech Corp. (B-/B3)
$    7,500,000	8.63	%	10/01/2007	$          6,537,500
BE Aerospace, Inc. (B/B2)
2,000,000	9.88		02/01/2006	2,097,500
Burke Industries, Inc. (CCC+/Caa1)
2,000,000	10.00		08/15/2007	400,000
Communications Instruments, Inc. (B-/B3)
2,500,000	10.00		09/15/2004	2,125,000
Dunlop Standard Aerospace Holdings (B-/B3)
3,000,000	11.88		05/15/2009	3,180,000
Hexcel Corp. (B/B2)
3,500,000	9.75		01/15/2009	3,395,000
K&F Industries, Inc. (B-/B3)
6,500,000	9.25		10/15/2007	6,678,750
Sequa Corp. (BB/Ba2)
1,500,000	9.00		08/01/2009	1,522,500
Transdigm, Inc. (B-/B3)
1,000,000	10.38		12/01/2008	962,500
Worldwide Flight Services, Inc. (B/B3)†
750,000	12.25		08/15/2007	637,500
				27,536,250
Automotive Parts – 2.9%
Accuride Corp. (B-/B2)
3,000,000	9.25		02/01/2008	2,160,000
American Axle & Manufacturing, Inc. (B+/B1)
10,000,000	9.75		03/01/2009	9,850,000
Anchor Lamina, Inc. (B-/B3)
1,500,000	9.88		02/01/2008	510,000
Federal-Mogul Corp. (B-/B3)
2,000,000	7.50		01/15/2009	320,000
Hayes Lemmerz International, Inc. (B-/B2)
4,500,000	9.13		07/15/2007	3,690,000
Hayes Wheels International, Inc. (B-/B2)
1,000,000	11.00		07/15/2006	910,000
JL French Automotive Castings (CCC+/B3)
1,500,000	11.50		06/01/2009	675,000
Navistar International Corp. (BB+/Ba2)
3,250,000	8.00		02/01/2008	3,006,250
Oxford Automotive, Inc. (B/Caa1)
3,500,000	10.13		06/15/2007	2,065,000
Prestolite Electric, Inc. (B-/B3)
2,074,000	9.63		02/01/2008	928,115
Stanadyne Automotive Corp. (B/Caa1)
3,250,000	10.25		12/15/2007	2,778,750
Tower Automotive, Inc. (BB-/B2)
1,500,000	5.00		08/01/2004	1,200,000
Venture Holdings Trust (B/B2)
4,000,000	9.50		07/01/2005	2,360,000
				30,453,115
Building Materials – 2.9%
Amatek Industries, Inc. (B/B3)
5,750,000	12.00		02/15/2008	4,485,000
Atrium Cos., Inc. (B-/B3)
3,000,000	10.50		05/01/2009	2,355,000

Principal Amount	Interest Rate		Maturity Date	Value
Corporate Bonds – (continued)
Building Materials – (continued)
Better Minerals & Aggregates (B-/B3)†
$    3,000,000	13.00	%	09/15/2009	$          2,520,000
Nortek, Inc. (B+/B1)
1,000,000	9.25		03/15/2007	977,500
3,000,000	9.13		09/01/2007	2,880,000
1,250,000	8.88		08/01/2008	1,193,750
Nortek, Inc. (B-/B3)
5,500,000	9.88		03/01/2004	5,500,000
Toll Corp. (BB+/Ba2)
1,000,000	8.25		02/01/2011	990,000
USG Corp. (BB-/Ba2)
2,000,000	8.50		08/01/2005	1,540,000
Werner Holdings Co., Inc. (B-/B2)
7,750,000	10.00		11/15/2007	7,440,000
				29,881,250
Capital Goods – 2.2%
Axiohm Transaction Solutions, Inc.V
3,000,000	9.75		10/01/2007	360,000
Flowserve Corp. (B/B3)†
3,000,000	12.25		08/15/2010	3,247,500
International Wire Group, Inc. (B-/B3)
3,000,000	11.75		06/01/2005	3,000,000
Packard BioScience Co. (B-/B3)
8,250,000	9.38		03/01/2007	7,940,625
Simonds Industries, Inc. (B-/B3)
750,000	10.25		07/01/2008	525,000
Thermadyne Holdings Corp. (CCC+/Caa3)§
4,000,000	0.00/12.50		06/01/2008	50,000
Thermadyne Manufacturing LLC (CCC+/Caa2)
5,250,000	9.88		06/01/2008	2,100,000
Trench Electric S.A. (CCC+/B3)
3,500,000	10.25		12/15/2007	2,450,000
Wabtec Corp. (BB/Ba3)
3,000,000	9.38		06/15/2005	2,902,500
				22,575,625
Chemicals – 4.7%
Avecia Group PLC (B/B2)
13,000,000	11.00		07/01/2009	13,715,000
Brunner Mond PLC (CC/Caa3)
1,000,000	11.00		07/15/2008	270,000
Equistar Chemicals LP (BBB-/Baa3)
2,000,000	7.55		02/15/2026	1,501,600
General Chemicals Industries (B/B3)
1,500,000	10.63		05/01/2009	855,000
Georgia Gulf Corp. (BB-/B1)
3,000,000	10.38		11/01/2007	3,165,000
Huntsman ICI Holdings LLC (B/B2)†
2,750,000	10.13		07/01/2009	2,805,000
Huntsman ICI Holdings LLC (B+/B3) @†
22,077,000	12.27		12/31/2009	6,954,255
Lyondell Chemical Co. (BB/Ba3)
5,000,000	9.88		05/01/2007	5,175,000
Lyondell Chemical Co. (B+/B2)
1,500,000	10.88		05/01/2009	1,541,250

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

GOLDMAN SACHS HIGH YIELD FUND

Principal Amount	Interest Rate		Maturity Date	Value
Corporate Bonds – (continued)
Chemicals – (continued)
PMD Group, Inc. (B/B3)†
$    6,000,000	11.00	%	02/28/2011	$          6,180,000
Polymer Group, Inc. (B-/B3)
2,250,000	9.00		07/01/2007	877,500
3,750,000	8.75		03/01/2008	1,387,500
Sovereign Specialty Chemicals, Inc. (B-/B3)†
5,500,000	11.88		03/15/2010	5,225,000
				49,652,105
Conglomerates – 0.4%
Actuant Corp. (B/B3)
1,500,000	13.00		05/01/2009	1,500,000
Eagle-Picher Industries, Inc. (B-/Caa1)
6,500,000	9.38		03/01/2008	3,120,000
				4,620,000
Consumer Cyclicals – 5.3%
APCOA, Inc. (CCC+/Caa2)
5,000,000	9.25		03/15/2008	2,250,000
Avis Group Holdings, Inc. (BBB-/Baa3)
4,319,000	11.00		05/01/2009	4,880,470
Fisher Scientific International, Inc. (B-/B3)
15,250,000	9.00		02/01/2008	15,271,250
Intertek Finance PLC (B-/B2)
7,000,000	10.25		11/01/2006	5,390,000
MSX International, Inc. (B/B3)
1,000,000	11.38		01/15/2008	895,000
National Equipment Services, Inc. (B/B3)
5,000,000	10.00		11/30/2004	4,020,000
United Rentals, Inc. (BB-/B2)
4,750,000	9.50		06/01/2008	4,227,500
2,750,000	8.80		08/15/2008	2,330,625
2,000,000	9.25		01/15/2009	1,740,000
Volume Services America, Inc. (B-/B3)
3,500,000	11.25		03/01/2009	3,185,000
Wesco Distribution, Inc. (B/B2)
8,000,000	9.13		06/01/2008	7,600,000
Williams Scotsman, Inc. (B-/B3)
3,750,000	9.88		06/01/2007	3,206,250
				54,996,095
Consumer Products – 2.3%
Blount, Inc. (CCC+/B3)
4,000,000	13.00		08/01/2009	2,160,000
Cabot Safety Corp. (B/B3)
5,500,000	12.50		07/15/2005	5,472,500
Corning Consumer Products Co. (CCC+/Ca)
3,250,000	9.63		05/01/2008	520,000
Generac Portable Products LLC (CCC/Caa2)
2,000,000	11.25		07/01/2006	1,900,000
Jostens, Inc. (B/B3)
4,500,000	12.75		05/01/2010	4,545,000
Playtex Products, Inc. (B+/B1)
1,000,000	8.88		07/15/2004	1,000,000
Polaroid Corp. (CCC+/B3)
2,000,000	11.50		02/15/2006	740,000

Principal Amount	Interest Rate		Maturity Date	Value
Corporate Bonds – (continued)
Consumer Products – (continued)
Sealy Mattress Co. (B-/B2)
$    1,500,000	0.00/10.88	%§	12/15/2007	$          1,290,000
2,500,000	9.88		12/15/2007	2,537,500
Sola International, Inc. (BB/Ba3)
1,500,000	11.00		03/15/2008	1,344,184
The Scotts Co. (B+/B2)†
1,000,000	8.63		01/15/2009	1,015,000
United Industries Corp. (CCC+/B3)
1,750,000	9.88		04/01/2009	1,277,500
				23,801,684
Defense – 0.5%
Condor Systems, Inc. (CCC/B3)†
2,000,000	11.88		05/01/2009	1,320,000
Newport News Shipbuilding, Inc. (B+/Ba3)
4,000,000	9.25		12/01/2006	4,260,000
				5,580,000
Energy – 1.1%
Benton Oil & Gas Co. (B/B3)
2,250,000	9.38		11/01/2007	1,355,625
Cross Timbers Oil Co. (B+/B1)
2,750,000	8.75		11/01/2009	2,873,750
P&L Coal Holdings Corp. (B/B2)
4,250,000	9.63		05/15/2008	4,462,500
R&B Falcon Corp. (A-/Baa3)
500,000	9.50		12/15/2008	586,250
Vintage Petroleum, Inc. (BB-/Ba3)
2,000,000	9.75		06/30/2009	2,180,000
				11,458,125
Entertainment – 0.7%
Premier Parks, Inc. (B/B3)
3,250,000	9.25		04/01/2006	3,306,875
Six Flags, Inc. (B/B3)†
4,000,000	9.50		02/01/2009	4,140,000
V2 Finance S.A.†
963,000	6.50		06/30/2012	221,490
				7,668,365
Environmental – 2.1%
Allied Waste North America, Inc. (BB-/Ba3)
4,000,000	8.88		04/01/2008	4,140,000
1,000,000	7.88		01/01/2009	985,000
Allied Waste North America, Inc. (B+/B2)
14,750,000	10.00		08/01/2009	15,192,500
The IT Group, Inc. (B+/B3)
2,000,000	11.25		04/01/2009	1,740,000
				22,057,500
Food – 2.7%
Agrilink Foods, Inc. (B-/B3)
1,500,000	11.88		11/01/2008	1,230,000
Aurora Foods, Inc. (CCC+/Caa1)
5,750,000	9.88		02/15/2007	5,175,000
2,000,000	8.75		07/01/2008	1,660,000

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

GOLDMAN SACHS HIGH YIELD FUND

Statement of Investments (continued)

April 30, 2001 (Unaudited)

Principal Amount	Interest Rate		Maturity Date	Value
Corporate Bonds – (continued)
Food – (continued)
Del Monte Foods Co. (B-/Caa1)§
$    6,350,000	0.00/12.50	%	12/15/2007	$          6,191,250
Domino’s, Inc. (B-/B3)
5,000,000	10.38		01/15/2009	5,062,500
Eagle Family Foods (CCC+/B3)
5,000,000	8.75		01/15/2008	2,900,000
New World Pasta Co. (CCC+/Caa1)
1,000,000	9.25		02/15/2009	560,000
Premier International Foods PLC (B-/B3)†
5,000,000	12.00		09/01/2009	5,000,000
				27,778,750
Gaming – 1.1%
Ameristar Casinos, Inc. (B-/B3)†
4,000,000	10.75		02/15/2009	4,100,000
Autotote Corp. (B-/B3)†
3,000,000	12.50		08/15/2010	2,767,500
Mandalay Resort Group (BB-/Ba3)
2,000,000	10.25		08/01/2007	2,100,000
MGM Mirage, Inc. (BB+/Ba2)
2,875,000	8.38		02/01/2011	2,900,156
				11,867,656
Health Care – 2.4%
ALARIS Medical, Inc. (CCC+/Caa1)§
4,000,000	0.00/11.13		08/01/2008	600,000
DJ Orthopedics LLC (B-/B3)
4,000,000	12.63		06/15/2009	3,940,000
Fresenius Medical Capital Trust I (B+/Ba3)
2,750,000	9.00		12/01/2006	2,798,125
Genesis Health Ventures, Inc.V
500,000	9.25		10/01/2006	80,000
1,000,000	9.88		01/15/2009	160,000
Hudson Respiratory Care, Inc. (B-/B3)
3,500,000	9.13		04/15/2008	2,458,750
Iasis Healthcare Corp. (B-/B3)†
4,250,000	13.00		10/15/2009	4,568,750
Kinetic Concepts, Inc. (CCC/B3)
5,000,000	9.63		11/01/2007	4,650,000
Triad Hospitals Holdings, Inc. (B-/B2)
5,500,000	11.00		05/15/2009	6,036,250
				25,291,875
Insurance Companies – 0.8%
Willis Corroon Corp. (B+/Ba3)
8,650,000	9.00		02/01/2009	8,563,500
Media-Cable – 8.5%
Adelphia Communications Corp. (B+/B2)
3,000,000	9.38		11/15/2009	2,940,000
1,000,000	10.88		10/01/2010	1,055,000
Advanstar Communications, Inc. (B-/B2)†
2,500,000	12.00		02/15/2011	2,550,000

Principal Amount	Interest Rate		Maturity Date	Value
Corporate Bonds – (continued)
Media-Cable – (continued)
Advanstar, Inc.§
$    2,875,000	0.00/15.00	%	10/15/2011	$          1,502,188
Avalon Cable Holding Finance (B+/B2)§
2,500,000	0.00/11.88		12/01/2008	1,956,250
Callahan Nordrhein Westfalen (B-/B3)†
3,500,000	14.00		07/15/2010	3,570,000
Charter Communications Holdings LLC (B+/B2)
2,000,000	8.63		04/01/2009	1,950,000
9,000,000	10.75		10/01/2009	9,720,000
3,000,000	0.00/11.75	§	01/15/2010	2,115,000
18,125,000	0.00/9.92	§	04/01/2011	12,914,062
Echostar DBS Corp. (B+/B1)
5,000,000	9.38		02/01/2009	5,100,000
Frontiervision Holdings LP (B+/B2)§
8,000,000	0.00/11.88		09/15/2007	8,120,000
Insight Midwest (B+/B1)†
2,500,000	10.50		11/01/2010	2,700,000
Mediacom LLC (B+/B2)
2,000,000	8.50		04/15/2008	1,900,000
2,000,000	9.50†		01/15/2013	1,950,000
Multicanal S.A.
1,000,000	13.13		04/15/2009	700,000
NTL Communications Corp. (B-/B2)
2,250,000	11.88		10/01/2010	1,912,500
Ono Finance PLC (CCC+/Caa1)†
9,250,000	13.00		05/01/2009	6,817,775
Renaissance Media Group LLC (B-/B2)§
3,000,000	0.00/10.00		04/15/2008	2,250,000
Telewest Communications PLC (B-/B2)
5,250,000	0.00/11.00	§	10/01/2007	5,072,812
5,000,000	11.25		11/01/2008	4,975,000
2,000,000	0.00/9.78	§	04/15/2009	1,060,000
2,000,000	0.00/11.38	§	02/01/2010	1,125,000
1,000,000	9.88		02/01/2010	912,500
Telewest Finance (B/B2)†
5,000,000	6.00		07/07/2005	4,075,000
				88,943,087
Media-Non Cable – 4.6%
AMFM, Inc. (BB+/Ba3)
5,250,000	8.13		12/15/2007	5,433,750
Chancellor Media Corp. LA (BBB-/Ba1)
3,500,000	8.00		11/01/2008	3,622,500
Crown Castle International Corp. (B/B3)
15,500,000	0.00/10.63	§	11/15/2007	13,058,750
4,250,000	0.00/10.38	§	05/15/2011	3,102,500
5,500,000	0.00/11.25	§	08/01/2011	3,877,500
2,875,000	10.75		08/01/2011	3,069,063
Emmis Escrow Corp. (B-/B3)† #
2,500,000	12.50		03/15/2011	1,412,500
Lin Holdings Corp. (B-/B3)§
9,500,000	0.00/10.00		03/01/2008	7,006,250

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

GOLDMAN SACHS HIGH YIELD FUND

Principal Amount	Interest Rate		Maturity Date	Value
Corporate Bonds – (continued)
Media-Non Cable – (continued)
PX Escrow Corp. (B-/Caa1)§
$    1,000,000	0.00/9.63	%	02/01/2006	$              350,000
Spectrasite Holdings, Inc. (B-/B3)§
5,500,000	0.00/11.25		04/15/2009	2,915,000
Young Broadcasting, Inc. (B/B2)
5,000,000	8.75		06/15/2007	4,500,000
				48,347,813
Metals – 0.5%
Earle M. Jorgensen Co. (B-/B3)
3,500,000	9.50		04/01/2005	3,150,000
Haynes International, Inc. (B-/Caa1)
1,500,000	11.63		09/01/2004	900,000
Republic Technologies International
2,000,000	13.75		07/15/2009	120,000
WHX Corp. (B-/Caa1)
2,500,000	10.50		04/15/2005	1,062,500
				5,232,500
Oil Services – 0.2%
Grant Prideco, Inc. (BB/Ba3)†
1,500,000	9.63		12/01/2007	1,582,500
Packaging – 2.8%
AEP Industries, Inc. (B/B3)
1,500,000	9.88		11/15/2007	1,425,000
Graham Packaging Co. (CCC+/Caa1)
7,500,000	8.75		01/15/2008	5,325,000
Graham Packaging Co. (CCC+/Caa2)§
7,750,000	0.00/10.75		01/15/2009	3,255,000
Owens-Illinois, Inc. (B+/B1)
4,000,000	7.15		05/15/2005	3,300,000
Pliant Corp. (B-/Caa1)
7,000,000	13.00		06/01/2010	4,900,000
Printpack, Inc. (B/B3)
3,000,000	10.63		08/15/2006	3,030,000
Printpack, Inc. (B+/B2)
3,000,000	9.88		08/15/2004	3,105,000
Stone Container Corp. (B/B2)†
1,500,000	9.25		02/01/2008	1,545,000
3,500,000	9.75		02/01/2011	3,626,875
				29,511,875
Paper – 3.5%
Ainsworth Lumber Co. Ltd. (CCC+/Caa1)
6,000,000	12.50		07/15/2007	4,860,000
APP China Group Ltd. (D/Caa3)†V
670,000	14.00		03/15/2010	43,550
Packaging Corp. of America (BB-/B1)
8,000,000	9.63		04/01/2009	8,580,000
Riverwood International Corp. (B-/B3)
6,000,000	10.25		04/01/2006	6,090,000
1,500,000	10.63		08/01/2007	1,537,500

Principal Amount	Interest Rate		Maturity Date	Value
Corporate Bonds – (continued)
Paper – (continued)
Riverwood International Corp. (CCC+/Caa1)
$  16,000,000	10.88	%	04/01/2008	$        15,200,000
				36,311,050
Publishing – 1.2%
American Lawyer Media, Inc. (B/B2)
4,000,000	9.75		12/15/2007	3,640,000
Day International Group, Inc. (B-/B3)
3,250,000	9.50		03/15/2008	2,860,000
Merrill Corp. (CCC+/B3)
1,500,000	12.00		05/01/2009	150,000
Transwestern Publishing Co. (B-/B2)
3,000,000	9.63		11/15/2007	2,970,000
WRC Media Corp. (B-/B3)
2,250,000	12.75		11/15/2009	2,025,000
Ziff Davis Media, Inc. (B-/B2)
1,000,000	12.00		07/15/2010	760,000
				12,405,000
Retailers – 0.5%
Advance Holdings Corp. (B-/Caa1)§
3,000,000	0.00/12.88		04/15/2009	1,770,000
Advance Stores Co., Inc. (B-/B3)
1,000,000	10.25		04/15/2008	940,000
Duane Reade, Inc. (B-/B3)
1,750,000	9.25		02/15/2008	1,645,000
Mattress Discounters Corp. (B/B3)
750,000	12.63		07/15/2007	603,750
				4,958,750
Technology – 3.5%
Amkor Technology, Inc. (B/B2)
2,500,000	5.00		03/15/2007	1,990,625
Amkor Technology, Inc. (BB-/Ba3)
2,000,000	9.25		02/15/2008	1,930,000
Chippac International Co., Ltd. (B-/B3)
1,250,000	12.75		08/01/2009	1,081,250
Details, Inc. (B/B3)§
2,000,000	0.00/12.50		11/15/2007	1,890,000
Fairchild Semiconductor Corp. (B/B2)
2,750,000	10.13		03/15/2007	2,681,250
1,500,000	10.38		10/01/2007	1,470,000
3,250,000	10.50		02/01/2009	3,168,750
Flextronics International Ltd. (BB-/Ba3)
3,250,000	9.88		07/01/2010	3,233,750
Intira Corp. (CCC)§
2,000,000	0.00/13.00		02/01/2010	840,000
MCMS, Inc. (CCC-/Caa3)
3,000,000	9.75		03/01/2008	780,000
NorthPoint Communications Group, Inc. (D/Ca)V
3,000,000	12.88		02/15/2010	45,000
SCG Holding & Semiconductor Corp. (B/B2)
7,530,000	12.00		08/01/2009	5,271,000

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

GOLDMAN SACHS HIGH YIELD FUND

Statement of Investments (continued)

April 30, 2001 (Unaudited)

Principal Amount	Interest Rate		Maturity Date	Value
Corporate Bonds – (continued)
Technology – (continued)
Seagate Technology International (B+/B1)†
$    4,000,000	12.50	%	11/15/2007	$          3,940,000
Viasystems Group, Inc. (B-/B3)
13,500,000	9.75		06/01/2007	8,235,000
				36,556,625
Telecommunications – 8.2%
360networks, Inc. (B/B3)V
806,000	12.50		12/15/2005	108,810
Alaska Communications Holdings, Inc. (B+/B3)
2,000,000	9.38		05/15/2009	1,640,000
Allegiance Telecom, Inc. (B/B3)
5,000,000	0.00/11.75	§	02/15/2008	3,150,000
1,000,000	12.88		05/15/2008	940,000
Birch Telecom, Inc.
1,000,000	14.00		06/15/2008	550,000
Carrier1 International S.A. (B-/B3)†
2,250,000	13.25		02/15/2009	1,237,500
Colt Telecom Group PLC (B+/B1)§
6,650,000	0.00/12.00		12/15/2006	6,384,000
Completel Europe N.V.§
2,250,000	0.00/14.00		02/15/2009	787,500
Destia Communications, Inc.(D)
2,000,000	13.50		07/15/2007	40,000
Energis PLC (B+/B1)†
4,250,000	9.75		06/15/2009	4,122,500
Exodus Communications, Inc. (B/B3)
3,000,000	11.25		07/01/2008	2,325,000
1,250,000	10.75		12/15/2009	950,000
3,500,000	11.63		07/15/2010	2,747,500
Global Crossing Holdings Ltd. (BB/Ba2)
1,500,000	9.13		11/15/2006	1,428,750
2,750,000	9.63		05/15/2008	2,612,500
2,500,000	9.50		11/15/2009	2,362,500
Globix Corp. (B-)
2,250,000	12.50		02/01/2010	686,250
GST Network Funding, Inc. (CCC)§
2,000,000	0.00/10.50		05/01/2008	880,000
ICG Holdings, Inc. (D/Ca)§
3,000,000	0.00/11.63		03/15/2007	195,000
Intermedia Communications, Inc. (B/B2)
7,250,000	0.00/11.25	§	07/15/2007	5,981,250
1,000,000	9.50		03/01/2009	940,000
Intermedia Communications, Inc. (CCC+/B3)§
1,000,000	0.00/12.25		03/01/2009	660,000
Jazztel PLC (CCC+/Caa1)
750,000	14.00		04/01/2009	382,500
Leap Wireless International, Inc. (CCC/Caa2)
1,000,000	0.00/14.50	§	04/15/2010	250,000
500,000	12.50		04/15/2010	300,000

Principal Amount	Interest Rate		Maturity Date	Value
Corporate Bonds – (continued)
Telecommunications – (continued)
Level 3 Communications, Inc. (B/B3)
$    4,000,000	9.13	%	05/01/2008	$          2,600,000
McLeodUSA, Inc. (B+/B1)
4,500,000	0.00/10.50	§	03/01/2007	3,420,000
1,750,000	12.00		07/15/2008	1,505,000
4,000,000	9.50		11/01/2008	3,200,000
5,500,000	11.38		01/01/2009	4,785,000
2,750,000	11.50		05/01/2009	2,365,000
Metromedia Fiber Network, Inc. (B+/B2)
3,000,000	10.00		11/15/2008	2,040,000
2,000,000	10.00		12/15/2009	1,360,000
Metronet Communications Corp. (BBB/Baa3)
3,000,000	0.00/9.95	§	06/15/2008	2,452,134
750,000	10.63		11/01/2008	825,000
NEXTLINK Communications, Inc. (B/B2)
2,000,000	9.63		10/01/2007	940,000
2,250,000	9.00		03/15/2008	1,035,000
3,500,000	10.75		06/01/2009	1,732,500
Orange PLC (A-/A3)
1,500,000	8.75		06/01/2006	1,522,500
3,500,000	9.00		06/01/2009	3,587,500
Pathnet, Inc.V
1,500,000	12.25		04/15/2008	75,000
Price Communications Wireless, Inc. (B+/Ba2)
2,125,000	9.13		12/15/2006	2,210,000
PSINet, Inc. (CC/Ca)
3,750,000	10.00		02/15/2005	281,250
1,000,000	11.50		11/01/2008	75,000
1,000,000	11.00		08/01/2009	75,000
RSL Communications PLC (D/Ca)
1,000,000	12.25		11/15/2006	15,000
2,000,000	0.00/10.13	§	03/01/2008	40,000
625,000	9.13		03/01/2008V	12,500
2,000,000	10.50		11/15/2008	40,000
Tele1 Europe B.V. (B-/B3)
1,000,000	13.00		05/15/2009	870,000
TeleCorp PCS, Inc. (B3)†
2,000,000	10.63		07/15/2010	1,900,000
United Pan-Europe Communications N.V. (B-/Caa1)
1,000,000	0.00/13.75	§	02/01/2010	335,000
2,000,000	11.25		02/01/2010	1,320,000
Viatel, Inc. (D/Ca)
2,343,000	11.50		03/15/2009	281,160
WAM!Net, Inc. (CCC)§
1,250,000	0.00/13.25		03/01/2005	187,500
Williams Communications Group, Inc. (B+/B2)
2,000,000	10.70		10/01/2007	900,000
1,000,000	11.70		08/01/2008	450,000
1,500,000	10.88		10/01/2009	660,000
1,000,000	11.88		08/01/2010	450,000

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

GOLDMAN SACHS HIGH YIELD FUND

Principal Amount	Interest Rate		Maturity Date	Value
Corporate Bonds – (continued)
Telecommunications – (continued)
World Access, Inc. (D)V
$    1,334,000	13.25	%	01/15/2008	$          28,347
XO Communications, Inc. (B/B2)
2,000,000	10.75		11/15/2008	990,000
				86,226,951
Telecommunications-Cellular – 9.1%
AirGate PCS, Inc. (CCC/Caa1)§
4,000,000	0.00/13.50		10/01/2009	2,400,000
Alamosa PCS Holdings, Inc. (CCC/Caa1)§
3,500,000	0.00/12.75		02/15/2010	1,820,000
Alamosa, Inc. (CCC/Caa1)
2,500,000	12.50		02/01/2011	2,456,250
American Tower Corp. (B/B3)†
5,000,000	9.38		02/01/2009	4,987,500
Cellco Finance N.V.
2,750,000	12.75		08/01/2005	1,980,000
Cellco Finance N.V. (B-/B2)
250,000	12.75		08/01/2005	180,000
Centennial Cellular Corp. (B-/B3)
6,000,000	10.75		12/15/2008	5,640,000
Clearnet Communications, Inc. (BBB+/Ba1)§
3,000,000	0.00/10.13		05/01/2009	2,527,500
Dobson Communications Corp. (B/B3)†
3,000,000	10.88		07/01/2010	3,045,000
Esat Telecom Group PLC (A/A2)
4,000,000	11.88		12/01/2008	4,687,240
Grupo Iusacell S.A. de C.V. (B+/B1)
2,000,000	14.25		12/01/2006	2,075,000
Horizon PCS, Inc. (CCC/Caa1)§
2,500,000	0.00/14.00		10/01/2010	975,000
IWO Holdings, Inc. (CCC/Caa1)†
3,000,000	14.00		01/15/2011	2,760,000
Millicom International Cellular S.A. (B-/Caa1)§
5,000,000	0.00/13.50		06/01/2006	4,250,000
Nextel Communications, Inc. (B/B1)
11,250,000	0.00/10.65	§	09/15/2007	8,268,750
3,750,000	0.00/9.75	§	10/31/2007	2,578,125
18,000,000	0.00/9.95	§	02/15/2008	12,150,000
8,250,000	9.38		11/15/2009	7,012,500
1,000,000	5.25		01/15/2010	627,500
5,000,000	9.50	†	02/01/2011	4,125,000
Nextel Partners, Inc. (CCC+/B3)
650,000	0.00/14.00	§	02/01/2009	396,500
5,500,000	11.00		03/15/2010	4,757,500
SBA Communications Corp. (B-/B3)†
6,000,000	10.25		02/01/2009	5,940,000
Spectrasite Holdings, Inc. (B-/B3)§
1,500,000	0.00/12.88		03/15/2010	742,500
Triton PCS Holdings, Inc. (CCC+/B3)§
9,000,000	0.00/11.00		05/01/2008	7,020,000

Principal Amount	Interest Rate		Maturity Date	Value
Corporate Bonds – (continued)
Telecommunications-Cellular – (continued)
Triton PCS, Inc. (CCC+/B3)†
$    2,000,000	9.38	%	02/01/2011	$      1,925,000
Winstar Communications, Inc. (D/Ca)V
1,000,000	12.75		04/15/2010	15,000
				95,341,865
Textiles – 0.1%
Galey & Lord, Inc. (B-/Ca)
2,000,000	9.13		03/01/2008	1,120,000
Globe Manufacturing Corp. (Ca)V
2,000,000	10.00		08/01/2008	200
				1,120,200
Transportation – 0.3%
Stena AB (BB-/Ba3)
1,000,000	10.50		12/15/2005	980,000
1,800,000	8.75		06/15/2007	1,611,000
				2,591,000
TOTAL CORPORATE BONDS
(Cost $955,237,590)				$  812,911,111
Emerging Market Debt – 2.2%
Federal Republic of Brazil
$    1,040,000	12.25	%	03/06/2030	$          893,100
Grupo Industrial Durango S.A. (BB-/B2)
2,400,000	12.63		08/01/2003	2,412,000
Hanvit Bank (B/Ba3)†#
1,990,000	11.75		03/01/2010	1,995,515
Indah Kiat Finance Mauritius (CC/Caa3)
1,240,000	10.00		07/01/2007	260,400
National Republic of Bulgaria (B+/B2)#
2,920,000	6.31		07/28/2011	2,252,050
Partner Communications Co., Ltd. (B-/B3) ADR
5,000,000	13.00		08/15/2010	4,450,000
PTC International Finance B.V. (B+/B2)§
870,000	0.00/10.75		07/01/2007	687,300
PTC International Finance II S.A. (B+/B2)
2,500,000	11.25		12/01/2009	2,475,000
Republic of Panama (BB+/Ba1)#
805,447	7.73		05/10/2002	793,849
610,000	9.38		04/01/2029	617,243
Republic of Philippines (BB+/Ba1)
1,200,000	10.63		03/16/2025	996,000
Republic of Poland (BBB+/Baa1)#
440,000	6.00		10/27/2014	429,275
Russian Federation (B-/B3)
1,750,000	8.75		07/24/2005	1,465,625
2,750,000	10.00		06/26/2007	2,194,844
State of Qatar (BBB+/Baa2)
1,200,000	9.75		06/15/2030	1,287,000
TOTAL EMERGING MARKET DEBT
(Cost $24,245,072)				$    23,209,201

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

GOLDMAN SACHS HIGH YIELD FUND

Statement of Investments (continued)

April 30, 2001 (Unaudited)

Principal Amount	Interest Rate		Maturity Date	Value
Foreign Debt ObligationsE  – 12.6%
British Pound Sterling – 4.7%
Coral Group Holdings PLC (B-/B3)†
GBP1,500,000	10.00	%	02/15/2009	$          2,167,208
Coral Group Holdings PLC (CCC)†
2,514,151	13.50		09/30/2009	3,236,845
Gala Group Holdings PLC (B-/B3)
5,500,000	12.00		06/01/2010	8,497,173
IPC Magazines Group PLC (B-/B3)
5,000,000	0.00/10.75	§	03/15/2008	4,434,552
4,000,000	9.63		03/15/2008	4,920,922
Orange PLC
2,750,000	8.88		06/01/2009	4,022,389
Polestar Corp. PLC (B/B3)
1,500,000	10.50		05/30/2008	944,130
Telewest Communications PLC (B+/B1)§
15,500,000	0.00/9.88		04/15/2009	11,640,698
United Biscuits Finance (B/B2)†
3,500,000	10.75		04/15/2011	5,232,056
William Hill Finance PLC (B-/B3)
2,750,000	10.63		04/30/2008	4,130,571
				49,226,544
Euro Currency – 6.4%
Alfa Laval Special Finance A.B. (B/B2)†
EUR     3,250,000	12.13		11/15/2010	3,200,754
BSN Financing Co., S.A. (B/B1)
2,000,000	10.25		08/01/2009	1,597,050
Completel Europe N.V. (Caa1)
1,000,000	14.00		04/15/2010	585,585
Crown Cork & Seal Finance S.A. (B/Caa3)
2,000,000	6.00		12/06/2004	887,250
Esat Telecom Group PLC (A/A2)
2,000,000	11.88		11/01/2009	2,067,293
Exodus Communications, Inc. (B/B3)
3,250,000	10.75		12/15/2009	2,105,001
FLAG Telecom Holdings Ltd. (B/B2)
2,000,000	11.63		03/30/2010	1,330,875
Flowserve Finance B.V. (B/B3)†
1,500,000	12.25		08/15/2010	1,437,345
Grohe Holding GMBH (B/B2)
10,000,000	11.50		11/15/2010	9,715,388
Huntsman ICI Chemicals (B/B2)
3,500,000	10.13		07/01/2009	3,183,009
Ineos Acrylics PLC (B+/B3)
5,250,000	10.25		05/15/2010	4,751,224
Jazztel PLC (CCC+/Caa1)
2,000,000	14.00		04/01/2009	904,995
Kappa Beheer B.V. (B/B2)§
7,250,000	0.00/12.50		07/15/2009	4,631,445
Kappa Beheer N.V. (B/B2)
5,000,000	10.63		07/15/2009	4,702,425
Neste Chemicals International OYJ (B/B3)
1,646,000	12.25		08/15/2010	1,314,372

Principal Amount	Interest Rate		Maturity Date	Value
Foreign Debt ObligationsE  – (continued)
Euro Currency – (continued)
NTL Communications Corp. (B/B2)
EUR 3,800,000	0.00/11.50	%§	11/15/2009	$          1,416,051
9,750,000	9.88		11/15/2009	6,574,523
Ono Finance PLC (CCC+/Caa1)†
2,500,000	14.00		07/15/2010	1,907,588
PTC International Finance II S.A. (B+/B2)
2,570,000	11.25		12/01/2009	2,303,035
Slovak Wireless Finance Co. (B+/B1)
1,860,000	11.25		03/30/2007	1,699,794
Tele1 Europe B.V. (B-/B3)†
1,000,000	13.00		05/15/2009	754,162
1,000,000	11.88		12/01/2009	736,418
United Pan-Europe Communications N.V. (B-/Caa1)
1,500,000	11.25		02/01/2010	851,760
Vantico Group S.A.
9,000,000	12.00		08/01/2010	8,304,660
				66,962,002
German Mark – 1.5%
Colt Telecom Group PLC (B+/B1)
DEM 5,000,000	8.88		11/30/2007	2,132,126
Exide Holding Europe S.A. (B-/B1)†
1,250,000	9.13		04/15/2004	476,326
Impress Metal Pack Holdings (B-/B3)
10,000,000	9.88		05/29/2007	4,218,887
Ineos PLC (B-/B3)
5,000,000	8.63		04/30/2005	2,421,323
Sirona Dental Systems (B-/B2)†
13,500,000	9.13		07/15/2008	5,695,497
Texon International PLC (B/Caa1)†
2,250,000	10.00		02/01/2008	785,938
				15,730,097
TOTAL FOREIGN DEBT OBLIGATIONS
(Cost $157,526,195)				$      131,918,643

Shares		Value
Common Stocks* – 0.3%
84,126	Aurora Foods, Inc.	$              417,265
59,200	Colt Telecom Group PLC	817,217
62,500	Completel Europe N.V.	156,250
33,206	Intira Corp.	0
41,141	Jazztel PLC	374,149
9,132	McLeodUSA, Inc.	80,818
33,342	Pathmark Stores, Inc.	633,498
2,881	RSL Communications Ltd.	43
18,792	Tele1 Europe Holding AB ADR	69,531
7,069	World Access, Inc.	424

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

GOLDMAN SACHS HIGH YIELD FUND

Shares		Value
Common Stocks* – (continued)
3,044	WRC Media Corp.	$                         0
TOTAL COMMON STOCKS
(Cost $1,217,347)		$          2,549,195

Shares	Interest Rate		Maturity Date	Value
Preferred Stocks – 3.0%
Avecia Group PLC (B-/B3)‡
50,388	16.00	%	07/01/2010	$          1,259,700
Crown Castle International Corp. (CCC+/Caa)‡
5,881	12.75		12/15/2010	5,586,950
CSC Holdings, Inc. (B+/B1)
63,359	11.75		10/01/2007	6,906,131
82,194	11.13		04/01/2008	8,876,952
Eagle-Picher Holdings, Inc. (CCC+/Ca)§
200	11.75		03/01/2008	240,000
Global Crossing Holdings Ltd. (B+/B1)‡
12,500	10.50		12/01/2008	1,100,000
Intermedia Communications, Inc. (CCC-/Caa)‡
1,584	13.50		03/31/2009	1,409,498
Nextel Communications, Inc. (CCC+/B3)‡
1,807	13.00		07/15/2009	1,499,706
4,030	11.13		02/15/2010	2,901,600
River Holding Corp. (CCC)‡
5,257	11.50		04/15/2010	157,705
Rural Cellular Corp. (CCC+/Caa)‡
2,325	12.25		05/15/2011	1,743,750
TOTAL PREFERRED STOCKS
(Cost $31,120,049)				$        31,681,992

Units	Expiration Date	Value
Warrants* – 0.1%
ASAT Finance LLC
2,000	11/01/2006	$                80,000
Asia Pulp & Paper Ltd.
670	05/15/2005	8,710
Avecia Group PLC
80,000	07/01/2010	90,000
Birch Telecom, Inc.
1,000	06/15/2008	55,000
Cellnet Data Systems, Inc.
3,000	09/15/2007	0
Coral Group Holdings PLC
2,000	09/30/2009	280,378
Enitel ASA
2,500	04/15/2010	0
Horizon PCS, Inc.
2,500	10/01/2010	25
Intira Corp
196,088	02/25/2002	0

Units	Expiration Date	Value
Warrants* – continued
Jostens, Inc.
3,500	05/01/2010	$                  7,000
Knology, Inc.
1,750	10/15/2007	3,500
Leap Wireless International, Inc.
1,500	04/15/2010	0
Mattress Discounters Holding Corp.
750	07/15/2007	5,625
Merrill Corp.
1,500	05/01/2009	0
Ono Finance PLC
6,250	05/01/2009	255,881
Pathnet, Inc.
1,500	04/15/2008	1,500
Pliant Corp.
7,000	06/10/2001	56,000
Republic Technologies International LLC
2,000	07/15/2009	20
V2 Music Holdings PLC
1,750	04/15/2008	0
WAM!Net, Inc.
3,750	03/01/2005	18,750
Worldwide Flight Services, Inc.
750	08/15/2007	75
TOTAL WARRANTS
(Cost $613,155)		$              862,464
TOTAL INVESTMENTS
(Cost $1,169,959,408)*		$    1,003,132,606

† Security is exempt from registration under Rule 144A of the Securities Act of 1933. Such security may be resold, normally to qualified institutional buyers in transactions exempt from registration. The market value of 144A securities amounts to $142,183,347 as of April 30, 2001.

§ These securities are issued with a zero coupon or dividend rate which increases to the stated rate at a set date in the future.

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

      DEM = German Mark.

      EUR = Euro currency.

      GBP = Great Britain Pound.

# Variable rate security. Coupon rate disclosed is that which is in effect at April 30, 2001.

‡ Pay-in-kind securities.

* Non-income producing security.

V  Security currently in default.

@ Security is issued with a zero coupon. The interest rate disclosed for this security represents effective yield to maturity.

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

Investment Abbreviations:

ADR—American Depositary Receipt

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

GOLDMAN SACHS HIGH YIELD FUND

Statement of Assets and Liabilities

April 30, 2001 (Unaudited)

Assets:
Investment in securities, at value ($1,169,959,408)	$1,003,132,606
Cash, at value	4,398,303
Receivables:
Interest, at value	28,423,235
Forward foreign currency exchange contracts, at value	9,549,591
Fund shares sold	5,981,848
Investment securities sold, at value	2,579,940
Reimbursement from investment adviser	122,704
Deferred organization expenses, net	8,057
Other assets, at value	136,161
Total assets	1,054,332,445
Liabilities:
Payables:
Fund shares repurchased	2,524,964
Investment securities purchased, at value	2,267,845
Income distribution	2,212,199
Amounts owed to affiliates	869,654
Forward foreign currency exchange contracts, at value	130,744
Accrued expenses and other liabilities, at value	151,087
Total liabilities	8,156,493
Net Assets:
Paid-in capital	1,226,977,780
Accumulated undistributed net investment income	1,221,588
Accumulated net realized loss on investment and foreign currency related transactions	(24,463,598	)
Net unrealized loss on investments and translation of assets and liabilities denominated in foreign currencies	(157,559,818	)
NET ASSETS	$1,046,175,952
Net asset value, offering and redemption price per share: (a)
Class A	$7.98
Class B	$7.98
Class C	$7.97
Institutional	$7.99
Service	$7.99
Shares outstanding:
Class A	63,451,357
Class B	5,580,653
Class C	1,690,264
Institutional	60,273,850
Service	52,734
Total shares outstanding, $.001 par value (unlimited number of shares authorized)	131,048,858

(a) Maximum public offering price per share (NAV per share multiplied by 1.0471) for Class A shares is $8.36. At redemption, Class B and Class C shares may be subject to a contingent deferred sales charge, assessed on the amount equal to the lesser of the current net asset value or the original purchase price of the shares.

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

GOLDMAN SACHS HIGH YIELD FUND

Statement of Operations

For the Six Months Ended April 30, 2001 (Unaudited)

Investment income:
Interest	$60,557,222
Dividends	1,743,885
Total income	62,301,107
Expenses:
Management fees	3,690,197
Distribution and Service fees (a)	816,784
Transfer Agent fees (b)	586,335
Custodian fees	262,192
Registration fees	66,229
Professional fees	26,011
Trustee fees	4,901
Amortization of deferred organization expenses	3,189
Service share fees	1,004
Other	50,239
Total expenses	5,507,081
Less — expense reductions	(286,240	)
Net expenses	5,220,841
NET INVESTMENT INCOME	57,080,266
Realized and unrealized gain (loss) on investment and foreign currency transactions:
Net realized gain (loss) from:
Investment transactions	(9,215,154	)
Foreign currency related transactions	7,503,524
Net change in unrealized gain (loss) on:
Investments	(11,735,411	)
Translation of assets and liabilities denominated in foreign currencies	(10,347,020	)
Net realized and unrealized loss on investment and foreign currency transactions	(23,794,061	)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$33,286,205

(a) Class A, Class B and Class C had distribution and service fees of $562,108, $197,869 and $56,807, respectively.

(b) Class A, Class B, Class C, Institutional Class and Service Class had Transfer Agent fees of $427,203, $37,595, $10,793, $110,664 and $80, respectively.

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

GOLDMAN SACHS HIGH YIELD FUND

Statement of Changes in Net Assets

For the Six Months Ended April 30, 2001 (Unaudited)

From operations:
Net investment income	$    57,080,266
Net realized loss on investment and foreign currency transactions	(1,711,630	)
Net change in unrealized gain (loss) on investments and foreign currency	(22,082,431	)
Net increase in net assets resulting from operations	33,286,205
Distributions to shareholders:
From net investment income
Class A Shares	(23,960,061	)
Class B Shares	(1,966,418	)
Class C Shares	(565,030	)
Institutional Shares	(30,585,322	)
Service Shares	(21,256	)
Total distributions to shareholders	(57,098,087	)
From share transactions:
Proceeds from sales of shares	623,850,211
Reinvestment of dividends and distributions	43,121,791
Cost of shares repurchased	(472,906,200	)
Net increase in net assets resulting from share transactions	194,065,802
TOTAL INCREASE	170,253,920
Net assets:
Beginning of period	875,922,032
End of period	$1,046,175,952
Accumulated undistributed net investment income	$      1,221,588

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

GOLDMAN SACHS HIGH YIELD FUND

Statement of Changes in Net Assets

For the Year Ended October 31, 2000

From operations:
Net investment income	$  81,792,819
Net realized loss on investment and foreign currency transactions	(8,443,395	)
Net change in unrealized gain (loss) on investments and foreign currency	(72,517,018	)
Net increase in net assets resulting from operations	832,406
Distributions to shareholders:
From net investment income
Class A shares	(51,619,818	)
Class B shares	(3,819,934	)
Class C shares	(1,022,081	)
Institutional shares	(32,870,243	)
Service shares	(44,000	)
In excess of net investment income
Class A shares	(1,135,142	)
Class B shares	(84,002	)
Class C shares	(22,476	)
Institutional shares	(722,831	)
Service shares	(968	)
Total distributions to shareholders	(91,341,495	)
From share transactions:
Proceeds from sales of shares	443,991,118
Reinvestment of dividends and distributions	63,743,194
Cost of shares repurchased	(373,740,054	)
Net increase in net assets resulting from share transactions	133,994,258
TOTAL INCREASE	43,485,169
Net assets:
Beginning of year	832,436,863
End of year	$875,922,032
Accumulated undistributed net investment income	$    1,239,409

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

GOLDMAN SACHS HIGH YIELD FUND

Financial Highlights

Selected Data for a Share Outstanding Throughout Each Period

		Income (loss) from investment operations						Distributions to shareholders
	Net asset value, beginning of period	Net investment income		Net realized and unrealized gain (loss)		Total income (loss) from investment operations		From net investment income		In excess of net investment income		Total Distributions
FOR THE SIX MONTHS ENDED APRIL 30, (Unaudited)
2001 - Class A Shares	$  8.18	$0.43	(c)	$(0.20	)	$  0.23		$(0.43	)	$    —		$(0.43	)
2001 - Class B Shares	8.18	0.40	(c)	(0.20	)	0.20		(0.40	)	—		(0.40	)
2001 - Class C Shares	8.17	0.40	(c)	(0.20	)	0.20		(0.40	)	—		(0.40	)
2001 - Institutional Shares	8.19	0.44	(c)	(0.20	)	0.24		(0.44	)	—		(0.44	)
2001 - Service Shares	8.19	0.43	(c)	(0.21	)	0.22		(0.42	)	—		(0.42	)
FOR THE YEARS ENDED OCTOBER 31,
2000 - Class A Shares	9.07	0.84	(c)	(0.78	)	0.06		(0.93	)	(0.02	)	(0.95	)
2000 - Class B Shares	9.08	0.78	(c)	(0.80	)	(0.02	)	(0.86	)	(0.02	)	(0.88	)
2000 - Class C Shares	9.07	0.78	(c)	(0.80	)	(0.02	)	(0.86	)	(0.02	)	(0.88	)
2000 - Institutional Shares	9.08	0.88	(c)	(0.79	)	0.09		(0.96	)	(0.02	)	(0.98	)
2000 - Service Shares	9.08	0.83	(c)	(0.78	)	0.05		(0.92	)	(0.02	)	(0.94	)
1999 - Class A Shares	9.16	0.85		(0.10	)	0.75		(0.84	)	—		(0.84	)
1999 - Class B Shares	9.16	0.77		(0.09	)	0.68		(0.76	)	—		(0.76	)
1999 - Class C Shares	9.16	0.78		(0.11	)	0.67		(0.76	)	—		(0.76	)
1999 - Institutional Shares	9.17	0.90	(c)	(0.12	)	0.78		(0.87	)	—		(0.87	)
1999 - Service Shares	9.17	0.86	(c)	(0.12	)	0.74		(0.83	)	—		(0.83	)
1998 - Class A Shares	9.97	0.82		(0.85	)	(0.03	)	(0.78	)	—		(0.78	)
1998 - Class B Shares	9.97	0.75		(0.86	)	(0.11	)	(0.70	)	—		(0.70	)
1998 - Class C Shares	9.97	0.75		(0.86	)	(0.11	)	(0.70	)	—		(0.70	)
1998 - Institutional Shares	9.97	0.84		(0.83	)	0.01		(0.81	)	—		(0.81	)
1998 - Service Shares	9.97	0.80		(0.84	)	(0.04	)	(0.76	)	—		(0.76	)
FOR THE PERIOD ENDED OCTOBER 31,
1997 - Class A Shares (commenced August 1)	10.00	0.17		(0.02	)	0.15		(0.17	)	(0.01	)	(0.18	)
1997 - Class B Shares (commenced August 1)	10.00	0.15		(0.02	)	0.13		(0.15	)	(0.01	)	(0.16	)
1997 - Class C Shares (commenced August 15)	9.97	0.14		0.01		0.15		(0.14	)	(0.01	)	(0.15	)
1997 - Institutional Shares (commenced August 1)	10.00	0.18		(0.02	)	0.16		(0.18	)	(0.01	)	(0.19	)
1997 - Service Shares (commenced August 1)	10.00	0.17		(0.02	)	0.15		(0.17	)	(0.01	)	(0.18	)

(a) Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions, a complete redemption of the investment at the net asset value at the end of the period and no sales charge. Total return would be reduced if a sales or redemption charge was taken into account. Total returns for less than one full year are not annualized.

(b) Annualized.

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

GOLDMAN SACHS HIGH YIELD FUND

								Ratios assuming no expense reductions
Net asset value, end of period	Total return (a)		Net assets at end of period (in 000s)	Ratio of net expenses to average net assets		Ratio of net investment income to average net assets		Ratio of expenses to average net assets		Ratio of net investment income to average net assets		Portfolio turnover rate
$7.98	2.86	%	$506,264	1.16	% (b)	10.66	% (b)	1.21	% (b)	10.61	% (b)	34	%
7.98	2.48		44,549	1.91	(b)	9.95	(b)	1.96	(b)	9.90	(b)	34
7.97	2.48		13,468	1.91	(b)	9.96	(b)	1.96	(b)	9.91	(b)	34
7.99	3.06		481,474	0.76	(b)	11.04	(b)	0.81	(b)	10.99	(b)	34
7.99	2.93		421	1.26	(b)	10.60	(b)	1.31	(b)	10.55	(b)	34
8.18	0.38		409,224	1.16		9.54		1.21		9.49		55
8.18	(0.48	)	37,085	1.91		8.79		1.96		8.74		55
8.17	(0.48	)	8,933	1.91		8.78		1.96		8.73		55
8.19	0.77		420,284	0.76		9.99		0.81		9.94		55
8.19	0.15		396	1.26		9.39		1.31		9.34		55
9.07	8.06		524,674	1.16		9.06		1.22		9.00		59
9.08	7.38		39,907	1.91		8.30		1.97		8.24		59
9.07	7.26		10,078	1.91		8.26		1.97		8.20		59
9.08	8.49		257,498	0.76		9.50		0.82		9.44		59
9.08	7.95		280	1.26		8.92		1.32		8.86		59
9.16	(0.70	)	401,626	1.09		8.25		1.36		7.98		113
9.16	(1.43	)	29,256	1.84		7.61		1.88		7.57		113
9.16	(1.43	)	8,532	1.84		7.61		1.88		7.57		113
9.17	(0.32	)	97,547	0.84		9.47		0.88		9.43		113
9.17	(0.79	)	447	1.34		9.17		1.38		9.13		113
9.97	1.50		325,911	0.95	(b)	7.06	(b)	1.57	(b)	6.44	(b)	45
9.97	1.31		10,308	1.70	(b)	6.28	(b)	2.07	(b)	5.91	(b)	45
9.97	1.46		1,791	1.70	(b)	6.17	(b)	2.07	(b)	5.80	(b)	45
9.97	1.58		2	0.70	(b)	7.16	(b)	1.07	(b)	6.79	(b)	45
9.97	1.46		2	1.20	(b)	6.69	(b)	1.57	(b)	6.32	(b)	45

GOLDMAN SACHS HIGH YIELD FUND

Notes to Financial Statements

April 30, 2001 (Unaudited)

1.  ORGANIZATION

Goldman Sachs Trust (the “Trust”) is a Delaware business trust registered under the Investment Company Act of 1940 (as amended) as an open-end, management investment company. The Trust includes the Goldman Sachs High Yield Fund (the “Fund”). The Fund is a diversified portfolio offering five classes of shares — Class A, Class B, Class C, Institutional and Service.

          The Fund invests primarily in non-investment grade fixed-income securities which are considered predominantly speculative by traditional investment standards. Non-investment grade fixed-income securities and unrated securities of comparable credit quality (commonly known as “junk bonds”) are subject to the increased risk of an issuer’s inability to meet principal and interest obligations. These securities, also referred to as high yield securities, may be subject to greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, generally negative perceptions of the junk bond markets and less secondary market liquidity.

2.  SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts. Actual results could differ from those estimates.

A.  Investment Valuation — Portfolio securities for which accurate market quotations are readily available are valued on the basis of quotations furnished by a pricing service or provided by dealers in such securities. Portfolio securities for which accurate market quotations are not readily available are valued based on yield equivalents, pricing matrices or other sources, under valuation procedures established by the Trust’s Board of Trustees. Short-term debt obligations maturing in sixty days or less are valued at amortized cost.

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. Interest income is recorded on the basis of interest accrued, net of foreign withholding taxes where applicable. Market discounts and market premiums on debt securities, other than mortgage backed securities, are amortized to interest income over the life of the security with a corresponding adjustment in the cost basis of that security. Net investment income (other than class specific expenses), unrealized and realized gains or losses are allocated daily to each class of shares of the Fund based upon the relative proportion of net assets of each class.

          In November 2000 the American Institute of Certified Public Accountants (AICPA) issued a revised version of the AICPA Audit and Accounting Guide for Investment Companies (the “Guide”). The revised version of the Guide is effective November 1, 2001 for the Fund and will require the Fund to amortize/accrete all premiums and discounts on debt securities. Currently, the Fund does amortize/accrete all such premiums and discounts and, as such, it will not be required to record any cumulative adjustments.

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 provision is required. Income distributions are declared daily and paid monthly. Capital gain distributions, if any, are declared and paid annually.

          The characterization of distributions to shareholders for financial reporting purposes is determined in accordance with income tax rules. Therefore, the source of the portfolio’s distributions may be shown in the accompanying financial 2.  SIGNIFICANT ACCOUNTING POLICIES – (continued)

statements as either from or in excess of net investment income or net realized gain on investment transactions, or from paid-in capital, depending on the type of book/tax differences that may exist.

          The Fund, as of its most recent tax year-end of October 31, 2000 had a capital loss carryforward of approximately $2,694,000 expiring in 2006 and 2007 for U.S. federal tax purposes. This amount is available to be carried forward to offset future capital gains to the extent permitted by applicable laws or regulations.

          At April 30, 2001, the aggregate cost of portfolio securities for federal income tax purposes is $1,170,232,812. Accordingly, the gross unrealized gain on investments is $19,559,501 and the gross unrealized loss on investments is $186,659,707 resulting in a net unrealized loss of $167,100,206.

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

          Class A, Class B and Class C shareholders of the Fund bear all expenses and fees relating to their respective Distribution and Service Plans. Shareholders of Service shares bear all expenses and fees paid to service organizations. Each class of shares separately bears its respective class-specific transfer agency fees.

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

F.  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; (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 and sale of investments; (ii) gains and losses between trade date and settlement date on investment securities transactions and forward exchange contracts; and (iii) gains and losses from the difference between amounts of dividends, interest and foreign withholding taxes recorded and the amounts actually received.

G.  Segregation Transactions — The Fund may enter into certain derivative transactions to seek to increase total return. Forward foreign currency exchange contracts, futures contracts, written options, mortgage dollar rolls, when-issued securities and forward commitments represent examples of such transactions. As a result of entering into those 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.

H.  Repurchase Agreements — Repurchase agreements involve the purchase of securities subject to the seller’s agreement to repurchase them at a mutually agreed upon date and price. During the term of a repurchase agreement, the value of the underlying securities, including accrued interest, is required to equal or exceed the value of the repurchase agreement. The underlying securities for all repurchase agreements are held in safekeeping at the Fund’s custodian.

3.  AGREEMENTS

Pursuant to the Investment Management Agreement (the “Agreement”), Goldman Sachs Asset Management (“GSAM”), a business unit of the Investment Management Division of Goldman, Sachs & Co. (“Goldman Sachs”), serves as the investment adviser to the Fund. Under the Agreement, the adviser, subject to the general supervision of the Trust’s Board of Trustees, manages the Fund’s portfolio. As compensation for the services rendered pursuant to the Agreement, the

GOLDMAN SACHS HIGH YIELD FUND

Notes to Financial Statements (continued)

April 30, 2001 (Unaudited)

3.  AGREEMENTS – (continued)

assumption of the expenses related thereto and administering the Fund’s business affairs, including providing facilities, the adviser is entitled to a fee, computed daily and payable monthly, at an annual rate equal to 0.70% of the average daily net assets of the Fund.

          The adviser has voluntarily agreed to limit certain “Other Expenses” of the Fund (excluding Management fees, Distribution and Service fees, Transfer Agent fees, taxes, interest, brokerage, litigation, Service Share fees, indemnification costs and other extraordinary expenses), to the extent that such expenses exceed, on an annual basis, 0.02% of the average daily net assets of the Fund. For the six months ended April 30, 2001, the adviser reimbursed approximately $255,000. In addition, the Fund has entered into certain expense offset arrangements with the custodian resulting in a reduction of the Fund’s expenses. For the six months ended April 30, 2001, custody fee reductions amounted to approximately $31,000.

          The Trust, on behalf of the Fund, has adopted Distribution and Service Plans. Under the Distribution and Service Plans, Goldman Sachs and/or authorized dealers are entitled to a monthly fee from the Fund for distribution and shareholder maintenance services equal, on an annual basis, to 0.25%, 1.00%, and 1.00% of the Fund’s average daily net assets attributable to Class A, Class B and Class C Shares, respectively.

          Goldman Sachs serves as the distributor of shares of the Fund pursuant to a Distribution Agreement. Goldman Sachs may receive a portion of the Class A sales load and Class B and Class C contingent deferred sales charges and has advised the Fund that it retained approximately $831,000 during the six months ended April 30, 2001.

          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 as follows: 0.19% of the average daily net assets for Class A, Class B, and Class C Shares and 0.04% of the average daily net assets for Institutional and Services Shares.

          The Trust, on behalf of the Fund, has adopted a Service Plan. The Plan allows for Service Shares to compensate service organizations for providing varying levels of account administration and shareholder liaison services to their customers who are beneficial owners of such shares. The Service Plan provides for compensation to the service organizations in an amount up to 0.50%, on an annualized basis, of the average daily net assets of the Service Shares.

          As of April 30, 2001, the amounts owed to affiliates were approximately $617,000, $149,000 and $104,000 for Management, Distribution and Service, and Transfer Agent fees, respectively.

4.  PORTFOLIO SECURITIES TRANSACTIONS

Cost of purchases and proceeds of sales and maturities of securities (excluding short-term investments) for the six months ended April 30, 2001, were $524,913,639 and $328,666,573, respectively.

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 the forward contract is offset by entry into a closing transaction or extinguished by delivery of the currency. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

GOLDMAN SACHS HIGH YIELD FUND

4.  PORTFOLIO SECURITIES TRANSACTIONS – (continued)

        At April 30, 2001, the Fund had the following outstanding forward foreign currency exchange contracts:

Open Foreign Currency Sale Contracts	Value on Settlement Date	Current Value	Unrealized
			Gain	Loss
British Pound
expiring 11/30/2001	$    5,539,040	$    5,186,493	$    352,547	$        —
expiring 1/30/2002	2,269,468	2,133,664	135,804	—
expiring 4/2/2002	23,364,790	22,981,189	383,601	—
expiring 7/15/2002	15,031,075	14,685,102	345,973	—
expiring 10/15/2002	8,037,460	8,012,952	24,508	—
Euro Currency
expiring 5/1/2001	2,804,608	2,357,172	447,436	—
expiring 5/15/2001	15,344,084	12,737,136	2,606,948	—
expiring 6/1/2001	15,456,997	13,239,709	2,217,288	—
expiring 11/30/2001	17,943,973	16,624,623	1,319,350	—
expiring 1/30/2002	6,677,467	6,363,482	313,985	—
expiring 4/1/2002	2,007,542	2,000,543	6,999	—
expiring 4/2/2002	7,912,834	7,792,898	119,936	—
expiring 4/2/2002	16,466,825	16,597,569	—	130,744
expiring 7/15/2002	23,106,941	21,850,568	1,256,373	—
TOTAL OPEN FOREIGN CURRENCY SALE CONTRACTS	$161,963,104	$152,563,100	$9,530,748	$130,744

Closed but Unsettled Forward Currency Contracts	Purchase Value	Sale Value	Realized
			Gain	Loss
Euro Currency
expiring 6/1/2001	$1,312,845	$1,331,688	$18,843	$—
TOTAL CLOSED BUT UNSETTLED FORWARD CURRENCY CONTRACTS	$1,312,845	$1,331,688	$18,843	$—

          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 April 30, 2001, the Fund had sufficient cash and/or securities to cover any commitments under these contracts.

5.  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 400% of the total bank borrowings. This facility is to be used solely for temporary or emergency purposes. The interest rate on borrowings is based on the Federal Funds rate. This facility also requires a fee to be paid by the Fund based on the amount of the commitment which has not been utilized. During the six months ended April 30, 2001, the Fund did not have any borrowings under this facility.

GOLDMAN SACHS HIGH YIELD FUND

Notes to Financial Statements (continued)

April 30, 2001 (Unaudited)

6.  SUMMARY OF SHARE TRANSACTIONS

Share activity is as follows:

	For the Six Months Ended April 30, 2001 (Unaudited)				For the Year Ended October 31, 2000
	Shares		Dollars		Shares		Dollars
Class A Shares
Shares sold	26,495,264		$214,487,484		19,056,447		$169,054,727
Reinvestment of dividends and distributions	2,237,781		18,019,756		4,542,703		40,044,057
Shares repurchased	(15,336,900	)	(123,112,920	)	(31,366,746	)	(276,325,256	)
	13,396,145		109,394,320		(7,767,596	)	(67,226,472	)
Class B Shares
Shares sold	1,586,717		12,931,948		1,241,333		10,926,770
Reinvestment of dividends and distributions	108,136		869,884		222,778		1,995,647
Shares repurchased	(647,804	)	(5,207,069	)	(1,331,046	)	(11,730,966	)
	1,047,049		8,594,763		133,065		1,191,451
Class C Shares
Shares sold	792,424		6,428,223		660,391		5,863,650
Reinvestment of dividends and distributions	34,383		276,431		68,188		601,201
Shares repurchased	(229,679	)	(1,850,596	)	(746,805	)	(6,585,241	)
	597,128		4,854,058		(18,226	)	(120,390	)
Institutional Shares
Shares sold	48,006,617		389,949,847		29,546,300		257,772,971
Reinvestment of dividends and distributions	2,964,718		23,955,720		2,414,141		21,102,221
Shares repurchased	(42,043,361	)	(342,718,290	)	(8,969,936	)	(78,885,981	)
	8,927,974		71,187,277		22,990,505		199,989,211
Service Shares
Shares sold	6,481		52,709		41,484		373,000
Reinvestment of dividends and distributions	—		—		7		68
Shares repurchased	(2,172	)	(17,325	)	(23,927	)	(212,610	)
	4,309		35,384		17,564		160,458
NET INCREASE	23,972,605		$194,065,802		15,355,312		$133,994,258

F U N D S  P R O F I L E

Goldman Sachs Funds

Goldman Sachsis a premier financial services firm, known since 1869 for creating thoughtful and customized investment solutions in complex global markets.

Today, the Investment Management Divisionof Goldman Sachs serves a diverse set of clients worldwide, including private institutions, public entities and individuals. With portfolio management teams located around the world — and more than $280 billion in assets under management, our investment professionals bring firsthand knowledge of local markets to every investment decision, making us one of the few truly global asset managers.

¹  An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

The Goldman Sachs Research Select Fund^SM , Internet Tollkeeper Fund^SM and the CORE^SM Funds are service marks of Goldman, Sachs & Co.

*Goldman Sachs International Growth Opportunities Fund was formerly Goldman Sachs International Small Cap Fund.