N-30D 1 dn30d.htm GOLDMAN SACHS CASH PORTFOLIO Goldman Sachs Cash Portfolio

 

 

Statement of Investments  
Cash Portfolio  
June 30, 2001  
(Unaudited)  
 
     Principal
     Amount  
     
Interest
Rate
   
Maturity
Date
Amortized
Cost
U.S. Government Agency Obligations—99.6%  
Federal Home Loan Bank  
$ 1,000,000  
       
3.94
%  
     
07/02/2001  
$999,891  
Total U.S. Government Agency Obligations  
$999,891  
Total Investments
$999,891  
Interest rate represents the annualized yield on date of purchase for discounted securities.  
 
Maturity date represents the stated date on the security.  
 
The percentage shown for each investment category reflects the value of investments in that category as a percentage of total net assets.  
The accompanying notes are an integral part of these financial statements.  
 

Cash Portfolio  
Statement of Assets and Liabilities  
June 30, 2001  
(Unaudited)  
 
Assets:  
   
Investment in securities, at value based on amortized cost  
   
$    999,891  
Cash  
   
6,951  
Receivables:  
   
        Reimbursement from adviser  
   
130,728  
        Total assets  
   
1,137,570  
Liabilities:  
   
Payables:  
   
        Income distribution  
   
3,214  
        Management fee  
   
91  
Accrued expenses and other liabilities  
   
130,752  
        Total liabilities  
   
134,057  
Net Assets:  
   
Paid-in capital  
   
1,003,513  
        NET ASSETS  
   
$1,003,513  
Net asset value, offering and redemption price per share:  
   
$1.00  
Shares outstanding:  
   
Institutional Shares  
   
1,000,503  
Preferred Shares  
   
1,505  
Administration Shares  
   
1,505  
Total shares outstanding, $.001 par value (unlimited number of shares authorized)  
   
1,003,513  

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

 

Cash Portfolio  
Statement of Operations  
For the Period Ended June 30, 2001(a)  
(Unaudited)  
 
Investment income:  
   
 
Interest  
   
$      6,935
 
       Total income  
   
6,935
 
Expenses:  
   
 
Registration fees  
   
101,468
 
Professional fees  
   
6,166
 
Custodian fees  
   
4,000
 
Management fees  
   
251
 
Other  
   
19,118
 
       Total expenses  
   
131,003
 
       Less—expense reductions  
   
(130,795
)  
       Net expenses  
   
208
 
NET INVESTMENT INCOME  
   
6,727
 
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS  
   
$      6,727
 
(a)
 
Commencement date of operations was May 1, 2001 for all share classes.  
The accompanying notes are an integral part of these financial statements.  
 

Cash Portfolio  
Statement of Changes in Net Assets  
For the Period Ended June, 30, 2001(a)  
(Unaudited)  
 
From operations:  
   
 
Net investment income  
   
$         6,727
 
          Net increase in net assets resulting from operations  
   
6,727
 
Distributions to shareholders:  
   
 
From net investment income  
   
 
          Institutional Shares  
   
(6,707
)  
          Preferred Shares  
   
(10
)  
          Administration Shares  
   
(10
)  
          Total distributions to shareholders  
   
(6,727
)  
From share transactions (at $1.00 per share):  
   
 
Proceeds from sales of shares  
   
1,000,000
 
Reinvestment of dividends and distributions  
   
3,513
 
          Net increase in net assets resulting from share transactions  
   
1,003,513
 
          Total increase  
   
1,003,513
 
Net assets:  
   
 
Beginning of period  
   
—  
 
End of period  
   
$1,003,513
 
(a)
 
Commencement date of operations was May 1, 2001 for all share classes.  
The accompanying notes are an integral part of these financial statements.  
 

Cash Portfolio  
Notes to Financial Statements  
June 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 Cash Portfolio (the “Fund”). The Fund offers three classes of shares—Institutional, Preferred and Administration. The investment objective of the Fund is to maximize current income to the extent consistent with the preservation of capital and maintenance of liquidity by investing exclusively in high quality money market instruments. The Fund invests in obligations of the U.S. Government, obligations of U.S. banks, commercial paper and other short-term obligations of U.S. companies, states, municipalities and other entities and repurchase agreements.  
 
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—  
The Fund uses the amortized-cost method for valuing portfolio securities, which approximates market value. Under this method, all investments purchased at a discount or premium are valued by amortizing the difference between the original purchase price and maturity value of the issue over the period to maturity.  
 
B.    Security Transactions and Interest Income—  
Security transactions are accounted for on a trade date basis. 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, premium amortized and discount earned. Net investment income (other than class specific expenses) 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.  
 
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 tax-exempt and taxable income to its shareholders. Accordingly, no federal tax provisions are required. Income distributions are declared daily and paid monthly by the Fund.  
     The characterization of distributions to shareholders for financial reporting purposes is determined in accordance with income tax rules. Therefore, the source of the Fund’s distributions is shown in the accompanying financial statements as from net investment income.  
     The amortized cost for the Fund stated in the accompanying Statement of Assets and Liabilities also represents aggregate cost for U.S. federal income tax purposes.  
 
D.    Expenses—  
Expenses incurred by the Fund which do not specifically relate to an individual Fund are allocated to the Fund on a straight-line or pro-rata basis depending upon the nature of the expense.  
     Shareholders of Preferred and Administration shares bear all expenses and fees paid to service organizations.  
 
E.    Segregation Transactions—  
The Fund may enter into forward commitments. These transactions involve a commitment by the Fund to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond a customary settlement. 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.  

Cash Portfolio  
Notes to Financial Statements    (continued)  
June 30, 2001  
(Unaudited)  
 

 
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, 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 or designated subcustodians under triparty repurchase agreements.  
 
3.
 
Agreements  
Goldman Sachs Asset Management (“GSAM”), a business unit of the Investment Management Division of Goldman, Sachs & Co. (“Goldman Sachs”), acts as investment adviser (the “Adviser”), pursuant to an Investment Management Agreement (the “Agreement”). Under the Agreement, GSAM, 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 and the assumption of the expenses related thereto and administering the Fund’s business affairs, including providing facilities, GSAM is entitled to a fee, computed daily and payable monthly, at an annual rate equal to .150% of the Fund’s average daily net assets. For the period ended June 30, 2001, GSAM has voluntarily agreed to waive a portion of its management fee equal annually to .04% of the average daily net assets of the Fund. For the period ended June 30, 2001, management fee waivers amounted to approximately $100.  
 
     GSAM has voluntarily agreed to limit “Other Expenses” of the Fund (excluding management fees, service organization fees, taxes, interest, brokerage commissions, litigation, indemnification, and other extraordinary expenses) to the extent such expenses exceed, on an annual basis, .01% of the average daily net assets of the Fund. For the period ended June 30, 2001, the adviser reimbursed approximately $130,800.  
 
     Goldman Sachs serves as Transfer Agent and Distributor of shares of the Fund pursuant to Transfer Agent and Distribution Agreements and receives no separate fee.  
 
4.
 
Preferred and Administration Plans  
The Trust, on behalf of the Fund, has adopted Service Plans. These plans allow for Preferred and Administration 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 Plans for Preferred and Administration shares provide for compensation to the service organizations in an amount up to 0.10% and 0.25% (on an annual basis) of the average daily net asset value of the respective shares.  
 
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. The committed 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 period ended June 30, 2001, the Fund did not have any borrowings under this facility.  
 
6.
 
Other Matters  
Pursuant to Securities and Exchange Commission exemptive orders, the Fund may enter into certain principal transactions, including repurchase agreements, with Goldman Sachs.  

 

7.
 
Summary of Share Transactions (at $1.00 per share)  
Share activity for the period ended June 30, 2001(a) is as follows:  
 
Institutional Shares:  
  
Shares sold  
  
997,000  
Reinvestment of dividends and distributions  
  
3,503  
 
 
1,000,503  
Preferred Shares:  
  
Shares sold  
  
1,500  
Reinvestment of dividends and distributions  
  
5  
 
 
1,505  
Administration Shares:  
  
Shares sold  
  
1,500  
Reinvestment of dividends and distributions  
  
5  
 
 
1,505  
Net increase in shares  
  
1,003,513  
(a)
 
Commencement of operations was May 1, 2001 for all share classes.  

Cash Portfolio  
Financial Highlights  
Selected Data for a Share Outstanding Throughout the Period  
Cash Portfolio  
 

 
                        
Ratios assuming no
expense reductions
                                                        
 
Net asset
value,
beginning
of period
   
Net
investment
income(a)
  
Distributions
to
shareholders
   
Net asset
value,
end
of period
   
Total
return(b)
   
Net assets,
end
of period
(in 000’s)
   
Ratio of net
expenses to
average net
assets(c)
  
Ratio of net
investment
income to
average net
assets(c)
 
Ratio of
expenses to
average net
assets(c)
  
Ratio of net
investment
loss to
average net
assets(c)
   
 
For the Period Ended June 30, (Unaudited)  
              
 
             
 
             
 
      
 
     
 
      
 
 
                                                                               
                                                                     
2001-Institutional Shares  
    
$1.00  
       
$0.01  
       
$(0.01
)  
       
$1.00  
       
0.67
%(d)  
       
$1,000  
       
0.12
%  
       
4.02
%  
      
78.25
%  
       
(74.11
)%  
  
2001-Preferred shares  
    
1.00  
       
0.01  
       
(0.01
)  
       
1.00  
       
0.66
(d)  
       
2  
       
0.22
 
       
4.00
 
      
78.35
 
       
(74.13
)  
  
2001-Administration shares  
    
1.00  
       
0.01  
       
(0.01
)  
       
1.00  
       
0.63
(d)  
       
2  
       
0.37
 
       
3.99
 
      
78.50
 
       
(74.14
)  
  
(a)
Calculated based on the average shares outstanding methodology.  
(b)   Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete redemption of the investment at the net asset value at the end of the period. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
(c)   Annualized.
(d)   Not annualized.

The accompanying notes are an integral part of these financial statements  

 
 
 
 
 
 
 
 
This Semiannual Report is authorized for distribution to prospective investors only when preceded or accompanied by a Cash Portfolio Prospectus which contains facts concerning the Fund’s objectives and policies, management, expenses and other information.

TRUSTEES  
Ashok N. Bakhru, Chairman  
David B. Ford  
Douglas C. Grip  
Patrick T. Harker  
John P. McNulty  
Mary P. McPherson  
Alan A. Shuch  
William H. Springer  
Richard P. Strubel  
 
OFFICERS  
Douglas C. Grip, President  
Jesse H. Cole, Vice President  
James A. Fitzpatrick, Vice President  
John M. Perlowski, Treasurer  
Peter W. Fortner, Assistant Treasurer  
Philip V. Giuca, Jr., Assistant Treasurer  
Howard B. Surloff, Secretary  
Amy E. Belanger, Assistant Secretary  
Kaysie P. Uniacke, Assistant Secretary  
Valerie A. Zondorak, Assistant Secretary  
 
GOLDMAN, SACHS & CO.  
Distributor and Transfer Agent  
 
GOLDMAN SACHS ASSET MANAGEMENT  
Investment Adviser  

Goldman Sachs Funds  
32 Old Slip  
New York, NY 10005  
CASHPORT/SAR