Goldman Sachs Variable Insurance Trust. Goldman Sachs Global Trends Allocation Fund

Goldman Sachs Variable Insurance Trust Goldman Sachs Global Trends Allocation Fund Annual Report December 31, 2017

INVESTMENT OBJECTIVE The Fund seeks total return while seeking to provide volatility management. Portfolio Management Discussion and Analysis Below, the Goldman Sachs Quantitative Investment Strategies Team discusses the Goldman Sachs Variable Insurance Trust Goldman Sachs Global Trends Allocation Fund s (the Fund ) performance and positioning for the 12-month period ended December 31, 2017 (the Reporting Period ). How did the Fund perform during the Reporting Period? During the Reporting Period, the Fund s Institutional and Service Shares generated average annual total returns of 13.36% and 13.11%, respectively. These returns compare to the 14.90% average annual total return of the Fund s benchmark, the Global Trends Allocation Composite Index (the Index ), during the same time period. The components of the Fund s benchmark, the MSCI World Index and the Bloomberg Barclays U.S. Aggregate Bond Index, generated average annual total returns of 23.07% and 3.54%, respectively, during the same time period. Importantly, during the Reporting Period, the Fund s overall annualized volatility (which is measured versus the S&P 500 Index) was 3.00%, less than the S&P 500 Index s annualized volatility of 3.77% during the same time period. What economic and market factors most influenced the Fund during the Reporting Period? During the Reporting Period, global equities recorded strong gains, while the broad fixed income market generated modestly positive returns. When the Reporting Period started in the first quarter of 2017, global equities advanced, driven by the possibility of deregulation, tax reform and infrastructure spending in the U.S. and also in response to stronger economic data. The Federal Reserve (the Fed ) raised U.S. interest rates in March 2017, but a seemingly cautious stance on the future path of monetary tightening from Fed Chair Janet Yellen and the presence of a dissenter on the Fed committee led to a dovish market reaction and Japanese yen appreciation, despite the Bank of Japan maintaining its policy rate. (Dovish tends to suggest lower interest rates; opposite of hawkish.) Meanwhile, the European Central Bank ( ECB ) kept its monetary policy unchanged at its March 2017 meeting but revised its economic growth and inflation forecasts upwards. Equity markets interpreted the positive economic assessment as hawkish, sparking concerns around the sequencing of the ECB s policy steps namely, whether interest rates might rise before quantitative easing ends. During the second quarter of 2017, global equities were buoyed by receding political risk. However, market optimism for pro-growth U.S. fiscal policy was dampened by political developments in Washington, D.C. Strong first quarter 2017 corporate earnings results, with double-digit growth across virtually all major developed market regions, were supportive for global equity markets. In June 2017, the Fed raised U.S. interest rates. During the same month, European markets reacted hawkishly to the ECB President s optimistic outlook for recovering inflation and cautious reference to tapering of asset purchases. Japanese equities saw a temporary pullback in June 2017, as market sentiment deteriorated and as the Japanese yen strengthened immediately after the Fed interest rate hike, but quickly rebounded. During the third quarter of 2017, U.S. economic activity and labor market data showed rather consistent strength, while inflation reversed five consecutive months of downside surprises. Details about the U.S. tax reform plan extended bullish, or optimistic, market moves and further boosted the U.S. dollar. Meanwhile, the ECB kept its monetary policy unchanged at its September 2017 meeting and revised downward its forecast for headline inflation for the second time in the calendar year. ECB President Draghi maintained a dovish stance and deferred discussion around tapered asset purchases to the ECB s October 2017 meeting. Risk sentiment amid North Korean missile launches and escalating geopolitical tensions between U.S. and North Korea drove the Japanese yen higher and its equities lower. Japanese equities subsequently rallied in September 2017 on rising U.S. bond yields, a weakening yen and reports that the Prime Minister had dissolved the Japanese Lower House and called a general election to be held in October 2017. Global equities continued to advance in October 2017, supported by encouraging tax reform progress and ongoing strength in both U.S. and global economic activity data. As expected, the ECB kept its interest rates unchanged but announced its plan to reduce monthly asset purchases for nine months from January 2018. In the U.S., the Fed started trimming the size of its balance sheet. In Japan, the ruling coalition won a significant majority in the Japanese election, which reassured markets and signaled a continuation of current macro policies. Japanese equities rallied on election anticipation and following the landslide victory and were further buoyed by strong corporate earnings results and rather stable overseas markets. In December 2017, the Fed delivered the third interest rate hike of the calendar year, as had been widely 1

expected, and maintained its projections for three additional interest rate hikes in 2018. Outside the U.S., equity market returns were relatively muted during the month, particularly amongst larger companies. The U.K., however, performed better than many other developed markets. Although the U.K. Prime Minister suffered a defeat in the House of Commons over the European Union Withdrawal Bill in December, the U.K. was judged by the European Union to have made sufficient progress on key issues to allow the next phase of Brexit negotiations including discussions on trade to begin. (Brexit refers to the U.K. s efforts to exit the European Union.) Elsewhere, the ECB upgraded its growth forecasts for the Eurozone s economy, though optimism was tempered by lackluster inflation. The German and French equity markets declined for the month. The Bank of Japan s ( BoJ ) quarterly Tankan survey of business sentiment showed that confidence improved, boosted by strengthening export activity, and the Japanese equity market eked out a modest gain for December 2017. In terms of fixed income, when the Reporting Period started, government bond sectors sold off and spread (or non-government bond) sectors generally posted gains. Investors focused on the prospect of pro-growth policies from the U.S. Administration, which helped boost business and consumer sentiment to near record levels, and also on the positive impact of earlier fiscal stimulus in China. Global purchasing managers indices ( PMI ) pointed to solid expansion across the largest global economies, the U.S. in particular. In Europe, economic data strengthened and political risk remained contained, as markets weathered the official start of Brexit negotiations. Monetary policy presented few surprises during the first calendar quarter, as the ECB, BoJ and Bank of England ( BoE ) kept their respective monetary policies unchanged. In March 2017, the ECB raised its economic growth and inflation forecast. The same month, Fed policymakers hiked interest rates. The U.S. dollar weakened versus many global currencies during the first calendar quarter. During the second quarter of 2017, spread sectors generally recorded positive returns, though with mixed results relative to government bond sectors. Political developments led to temporary bouts of volatility early in the quarter. However, political risks receded in May 2017 on the centrist candidate s victory in the French presidential election, which was supportive of French and European peripheral bonds broadly. On the economic front, U.S. core inflation weakened for the third consecutive month in May 2017, casting uncertainty over the pace of Fed monetary tightening. Nonetheless, comments included in minutes from the Fed s May and June 2017 policy meetings suggested an announcement about how and when the Fed would begin reducing the size of its balance sheet would be made sooner than the markets had previously anticipated. In Europe, economic data continued to surprise to the upside. At its June 2017 policy meeting, the ECB provided an optimistic assessment of the risks to economic growth, but revised downward its medium-term inflation forecasts. The ECB, BoJ and BoE left their respective monetary policies unchanged during the second calendar quarter, while the Fed raised interest rates for the second time in 2017 at its June policy meeting. As the quarter came to an end, a string of comments from global central bankers triggered a hawkish market reaction. Global interest rates rose as the market anticipated a faster than expected pace of monetary policy tightening by the BoE, ECB and Bank of Canada ( BoC ). During the second quarter of 2017, the U.S. dollar weakened versus many global currencies. In the third quarter of 2017, spread sectors broadly advanced, outperforming government bond sectors. The Fed kept its monetary policy unchanged but unveiled its plans for balance sheet normalization. (Balance sheet normalization refers to the steps the Fed takes to reverse quantitative easing and remove the substantial monetary accommodation it has provided to the economy since the financial crisis began in 2007.) This prompted a hawkish market reaction, with the U.S. dollar appreciating and yields on U.S. government bonds rising. However, the U.S. Treasury yield curve only steepened modestly due to geopolitical uncertainty and mixed U.S. economic data, including weak inflation readings. The central banks of other developed countries also set the stage for less accommodative monetary policy. The BoE noted a majority of its policymakers were in favor of tightening policy over the coming months, while the BoC surprised the markets with two consecutive rate hikes. The market s expectations for a BoE rate hike in November 2017, along with a constructive tone for Brexit negotiations, drove the British pound higher versus the U.S. dollar. The U.S. dollar also continued to weaken relative to many other global currencies during the third calendar quarter. During the fourth calendar quarter, spread sector performance was broadly positive, supported by ongoing strength in the global macro environment and contained market, macro and political volatility. Passage of U.S. tax legislation and solid corporate earnings were particularly supportive of U.S. corporate credit. In October 2017, the ECB announced it would reduce its monthly asset purchases from 60 billion to 30 billion for nine months beginning in January 2018, mainly by purchasing fewer sovereign government bonds. The ECB also said its policy rates would remain low for an extended period of time, and well past the horizon of the net asset purchases. During the same month, the BoE reversed an emergency interest rate cut, made in August 2016 following the Brexit referendum, and signaled that future monetary policy tightening would be limited, gradual and dependent on the economic reaction to the U.K. s eventual departure from the European Union. In December 2017, the Fed delivered its third short-term interest rate hike of 2017. The Fed s dot plot, which shows rate projections of the members of the Fed s Open Market Committee, indicated that three rate increases were on tap for 2018 and potentially two in 2019. The U.S. dollar weakened further versus many global currencies during the fourth quarter of 2017. 2

What key factors were responsible for the Fund s performance during the Reporting Period? The Fund primarily seeks to achieve its investment objective by investing in a global portfolio of equity and fixed income asset classes. Under normal market conditions, the Fund expects to invest at least 40% of its assets in equity investments and at least 20% of its assets in fixed income investments. The percentage of the Fund s portfolio exposed to any asset class or geographic region will vary from time to time as the weightings of the Fund change, and the Fund may not be invested in each asset class at all times. As part of the Fund s investment strategy, the Investment Adviser seeks to manage volatility and limit losses by allocating the Fund s assets away from risky investments in distressed or volatile market environments. Volatility is a statistical measurement of the magnitude of up and down fluctuations in the value of a financial instrument or index. In distressed or volatile market environments, the Fund may also hold significant amounts of U.S. Treasury, short-term or other fixed income investments, including money market funds and repurchase agreements or cash, and at times may invest up to 100% of its assets in such investments. During the Reporting Period, the Fund continued dynamically allocating across global asset classes, using a momentum-based methodology, as it sought total return while also seeking to provide volatility management. Momentum investing seeks growth of capital by gaining exposure to asset classes that have exhibited trends in price performance over selected time periods. In managing the Fund, we use a methodology that evaluates historical three-, six- and nine-month returns, volatilities and correlations across a range of nine global asset classes. Represented by indices, these asset classes include, within the equities category, U.S. large-cap and small-cap, European, Asian, emerging markets and U.K. stocks. Within the fixed income category, the Fund may allocate assets to the U.S., Europe and Japan. The analysis of these asset classes drives the aggregate allocations of the Fund over time. We believe market price momentum either positive or negative has significant predictive power. During the Reporting Period, the Fund was hurt by its allocation to U.S. Treasury securities, although this was offset somewhat by its allocation to German government bonds, which contributed positively. The Fund benefited from its allocation to global equities, including U.S. large-cap stocks, emerging markets stocks and Japanese equities. The Fund s allocations to U.K. and European equities also contributed positively, albeit to a lesser extent. What was the Fund s volatility during the Reporting Period? As part of our investment approach, we seek to mitigate the Fund s volatility. As mentioned earlier, for the Reporting Period overall, the Fund s actual volatility (annualized, using daily returns) was 3.00%, less than the S&P 500 Index s annualized volatility of 3.77%. How was the Fund positioned during the Reporting Period? During the Reporting Period, we tactically managed the Fund s allocations across equity and fixed income markets based on the momentum and volatility of these asset classes. At the beginning of the Reporting Period, the Fund s total assets were allocated 80% to equities, 20% to fixed income and 0% to cash. (Many of these positions were implemented through the use of exchangetraded index future contracts.) Within the equity category, the Fund had allocations to five of six global equity asset classes. It did not have an allocation to emerging markets equities at the start of the Reporting Period. As for fixed income, the Fund had an emphasis on German government bonds. At the end of January 2017, we added a small allocation to emerging markets equities, increasing it slightly by the end of May 2017. We increased the Fund s allocation to U.S. large-cap stocks early in the first quarter and eliminated its allocation to U.S. small-cap stocks. We also reduced the Fund s allocation to German government bonds and in March 2017, added an allocation to Japanese government bonds. By the end of the second calendar quarter, we reduced the size of the Fund s equity allocation and increased the size of its fixed income allocation. Within its equity allocation, the Fund had exposure to U.S. large-cap equities; European, Japanese and U.K. equities; and emerging markets equities. It had no exposure to U.S. small-cap equities. Within fixed income, we added some exposure to U.S. Treasuries, reduced the Fund s allocation to Japanese government bonds and eliminated the Fund s allocation to German government bonds. The Fund continued to have a 0% allocation to cash. In September 2017, we increased the size of the Fund s equity allocation and reduced the size of its fixed income allocation. Within its equity allocation, we increased the Fund s exposure to emerging markets equities and U.S. large-cap equities. We added an allocation to U.S. small-cap equities. Also, we reduced the Fund s exposure to Japanese and European equities, while maintaining its exposure to U.K. equities. Within fixed income, we added an allocation to U.S. Treasuries and Japanese government bonds. We also added exposure to German government bonds. 3

Near the end of the Reporting Period, within the equity allocation, we increased the Fund s exposure to Japanese equities and reduced its exposure to European equities. We eliminated the Fund s allocation to U.S. small-cap stocks. Within fixed income, we increased the Fund s allocation to Japanese government bonds and eliminated its allocations to U.S. Treasuries and German government bonds. How did the Fund use derivatives and similar instruments during the Reporting Period? During the Reporting Period, the Fund employed exchange-traded index futures contracts to gain exposure to U.S. large-cap and small-cap stocks; the European, Japanese and U.K. equity markets; and U.S., Japanese and German government bonds. On an absolute basis, the use of these instruments had a positive impact on the Fund s performance, as these allocations added to returns. What is the Fund s tactical asset allocation view and strategy for the months ahead? At the end of the Reporting Period, the Fund s total assets were allocated 80% to equities, 20% to fixed income and 0% to cash (Many of these positions were implemented through the use of exchange-traded index future contracts). Within the equity allocation, we prepared for 2018 by increasing the Fund s exposure to emerging markets equities, slightly moderating its exposure to European equities. Within the fixed income allocation, the Fund maintained its allocation to Japanese government bonds. It had no exposure to U.S. Treasuries and German government bonds. Going forward, we intend to position the Fund to provide exposure to price momentum from among nine underlying asset classes, while dynamically managing the volatility, or risk, of the overall portfolio. In general, the Fund seeks to maintain a strategic allocation of 60% of its assets in equity investments and 40% of its assets in fixed income investments. The Fund may deviate from these strategic allocations in order to allocate a greater percentage to asset classes with strong momentum and to reduce its allocation to assets with weak momentum. When volatility increases, our goal is to preserve capital by proportionally increasing the Fund s cash exposure and reducing its exposure to riskier asset classes. There is no guarantee the Fund s dynamic management strategy will cause it to achieve its investment objective. 4

Index Definitions Global Trends Allocation Composite Index is composed 60% of MSCI World Index and 40% of Bloomberg Barclays U.S. Aggregate Bond Index. It is a composite representation prepared by the Investment Adviser of the performance of the Fund s asset classes, weighted according to their respective weightings in the Fund s target range. MSCI World Index (Net, USD, Unhedged) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of 23 developed markets. Bloomberg Barclays U.S. Aggregate Bond Index represents an unmanaged diversified portfolio of fixed income securities, including U.S. Treasuries, investment grade corporate bonds, and mortgage-backed and asset-backed securities. It is not possible to invest directly in an unmanaged index. S&P 500 Index is an unmanaged index of 500 stocks that is generally representative of the performance of larger companies in the U.S. 5

FUND BASICS Global Trends Allocation Fund as of December 31, 2017 STANDARDIZED TOTAL RETURNS 1 For the year ended 12/31/17 One Year Five Years Since Inception Inception Date Institutional 13.36% N/A 4.49% 10/16/13 Service 13.11 5.58% 5.54 4/16/12 1 Standardized Total Returns are average annual total returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at net asset value ( NAV ). Because Institutional Shares and Service Shares do not involve a sales charge, such a charge is not applied to their Standardized Total Returns. Total return figures in the above chart 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. Current performance may be lower or higher than the total return figures in the above chart. Please visit www.gsamfunds.com to obtain the most recent month-end returns. Performance reflects fee waivers and/or expense limitations in effect during the periods shown. In their absence, performance would be reduced. EXPENSE RATIOS 2 Net Expense Ratio (Current) Gross Expense Ratio (Before Waivers) Institutional 0.73% 1.00% Service 0.99 1.24 2 The expense ratios of the Fund, both current (net of any fee waivers and/or expense limitations) and before waivers (gross of any fee waivers and/or expense limitations) are as set forth above according to the most recent publicly available Prospectuses for the Fund and may differ from the expense ratios disclosed in the Financial Highlights in this report. Pursuant to a contractual arrangement, the Fund s fee waivers and/or expense limitations will remain in place through at least April 28, 2018, and prior to such date, the Investment Adviser may not terminate the arrangements without the approval of the Fund s Board of Trustees. If these arrangements are discontinued in the future, the expense ratios may change without shareholder approval. 6

FUND BASICS FUND COMPOSITION 3 70% as of 12/31/17 as of 12/31/16 60% 55.0% 50% 45.0% 40% 35.1% 30% 20% 21.0% 23.1% 10% 0% Investment Companies Exchange Traded Funds Short-Term Investments 4 0.0% 3 The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets (excluding investments in the securities lending reinvestment vehicle if any). Figures in the above graph may not sum to 100% due to the exclusion of other assets and liabilities. The underlying composition of exchange traded funds and investment companies held by the Fund are not reflected in the graph above. Consequently, the Fund s overall composition may differ from the percentages contained in the graph above. The graph depicts the Fund s investments but may not represent the Fund s market exposure due to the exclusion of certain derivatives, if any, as listed in the Additional Investment Information section of the Schedule of Investments. 4 Short-Term Investments include investments in U.S. Government Agency Securities. U.S. Government Agency Securities include agency securities offered by companies such as Federal Home Loan Bank, Federal Home Loan Mortgage Corporation and Federal National Mortgage Association, which operate under a government charter. While they are required to report to a government regulator, their assets are not explicitly guaranteed by the government and they otherwise operate like any other publicly traded company. 7

Performance Summary December 31, 2017 The following graph shows the value, as of December 31, 2017, of a $10,000 investment made on April 16, 2012 (commencement of the Fund s operations) in Service Shares at NAV. For comparative purposes, the performance of the Fund s benchmark, the Global Trends Allocation Composite Index, (comprised of the Morgan Stanley Capital International (MSCI) World Index (60%) and the Bloomberg Barclays U.S. Aggregate Bond Index (40%)) 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 may 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 reflects applicable fee waivers and/or expense limitations in effect during the periods shown, and in their absence, performance would be reduced. Performance of Institutional Shares will vary from Service Shares due to differences in class specific fees. 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 the Fund. Global Trends Allocation Fund s Lifetime Performance Performance of a $10,000 investment, with distributions reinvested, from April 16, 2012 through December 31, 2017. $20,000 $18,000 Service Shares Global Trends Allocation Composite Index MSCI World Index Bloomberg Barclays U.S. Aggregate Bond Index $19,237 $16,000 $15,742 $14,000 $13,615 $12,000 $11,425 $10,000 $8,000 4/16/12 12/12 12/13 12/14 12/15 12/16 12/17 Average Annual Total Return through December 31, 2017 One Year Five Years Since Inception Institutional (Commenced October 16, 2013) 13.36% N/A 4.49% Service (Commenced April 16, 2012) 13.11 5.58% 5.54 8

Schedule of Investments December 31, 2017 Shares Description Value Exchange Traded Funds 35.1% 196,944 ishares Core S&P 500 Fund $ 52,948,394 868,574 ishares MSCI Emerging Markets Fund 40,927,207 199,162 Vanguard S&P 500 Fund 48,852,447 TOTAL EXCHANGE TRADED FUNDS (Cost $114,614,170) $142,728,048 Shares Distribution Rate Value Investment Companies (a) 55.0% Goldman Sachs Financial Square Government Fund Institutional Shares 122,370,204 1.228% $122,370,204 Goldman Sachs Financial Square Treasury Obligations Fund Institutional Shares 50,802,535 1.242 50,802,535 Goldman Sachs Financial Square Treasury Solutions Fund Institutional Shares 50,802,535 1.163 50,802,535 TOTAL INVESTMENT COMPANIES (Cost $223,975,274) $223,975,274 TOTAL INVESTMENTS 90.1% (Cost $338,589,444) $366,703,322 OTHER ASSETS IN EXCESS OF LIABILITIES 9.9% 40,193,710 NET ASSETS 100.0% $406,897,032 The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. (a) Represents an Affiliated Issuer. ADDITIONAL INVESTMENT INFORMATION FUTURES CONTRACTS At December 31, 2017, the Fund had the following futures contracts: Description Number of Contracts Expiration Date Notional Amount Unrealized Appreciation/ (Depreciation) Long position contracts: EURO STOXX 50 Index 486 03/16/2018 $ 20,368,629 $ (480,550) FTSE 100 Index 200 03/16/2018 20,624,891 556,722 Japan 10 Year Bond 61 03/13/2018 81,629,288 (35,687) S&P 500 E-Mini Index 758 03/16/2018 101,420,400 442,073 TOPIX Index 251 03/08/2018 40,476,326 606,460 Total Futures Contracts $1,089,018 The accompanying notes are an integral part of these financial statements. 9

Statement of Assets and Liabilities December 31, 2017 Assets: Investments in unaffiliated issuers, at value (cost $114,614,170) $142,728,048 Investments in affiliated issuers, at value (cost $223,975,274) 223,975,274 Cash 46,398,982 Receivables: Collateral on certain derivative contracts 7,341,039 Dividends 205,122 Fund shares sold 104,934 Reimbursement from investment adviser 10,412 Securities lending income 1,158 Variation margin on futures 444,479 Other assets 286 Total assets 421,209,734 Liabilities: Payables: Investments purchased 13,866,895 Management fees 215,136 Distribution and Service fees and Transfer Agency fees 92,639 Fund shares redeemed 31,166 Accrued expenses and other liabilities 106,866 Total liabilities 14,312,702 Net Assets: Paid-in capital 373,846,335 Undistributed net investment income 888,720 Accumulated net realized gain 2,972,979 Net unrealized gain 29,188,998 NET ASSETS $406,897,032 Net Assets: Institutional $ 30,107 Service 406,866,925 Total Net Assets $406,897,032 Shares outstanding $0.001 par value (unlimited shares authorized): Institutional 2,415 Service 32,688,839 Net asset value, offering and redemption price per share: Institutional $12.46 Service 12.45 10 The accompanying notes are an integral part of these financial statements.

Statement of Operations For the Fiscal Year Ended December 31, 2017 Investment income: Dividends unaffiliated issuers $ 2,770,709 Dividends affiliated issuers 1,450,194 Interest 88,833 Securities lending income affiliated issuer 29,514 Total investment income 4,339,250 Expenses: Management fees 2,994,132 Distribution and Service fees Service Shares 947,439 Professional fees 102,999 Transfer Agency fees (a) 75,796 Custody, accounting and administrative services 53,685 Printing and mailing costs 20,931 Trustee fees 18,255 Other 12,034 Total expenses 4,225,271 Less expense reductions (698,870) Net expenses 3,526,401 NET INVESTMENT INCOME 812,849 Realized and unrealized gain (loss): Net realized gain from: Investments unaffiliated issuers 10,232,892 Futures contracts 20,192,438 Foreign currency transactions 190,458 Net change in unrealized gain (loss) on: Investments unaffiliated issuers 16,219,348 Futures contracts (1,123,151) Foreign currency translation 6,039 Net realized and unrealized gain 45,718,024 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $46,530,873 (a) Institutional and Service Shares incurred Transfer Agency fees of $7 and $75,789, respectively. The accompanying notes are an integral part of these financial statements. 11

Statements of Changes in Net Assets For the Fiscal Year Ended December 31, 2017 For the Fiscal Year Ended December 31, 2016 From operations: Net investment income $ 812,849 $ 701,709 Net realized gain 30,615,788 225,837 Net change in unrealized gain 15,102,236 14,319,840 Net increase in net assets resulting from operations 46,530,873 15,247,386 Distributions to shareholders: From net investment income Institutional Shares (157) (119) Service Shares (1,185,638) (992,542) From net realized gains Institutional Shares (744) Service Shares (10,068,418) Total distributions to shareholders (11,254,957) (992,661) From share transactions: Proceeds from sales of shares 38,959,444 57,559,506 Reinvestment of distributions 11,254,957 992,661 Cost of shares redeemed (32,234,857) (74,879,513) Net increase (decrease) in net assets resulting from share transactions 17,979,544 (16,327,346) TOTAL INCREASE (DECREASE) 53,255,460 (2,072,621) Net assets: Beginning of year 353,641,572 355,714,193 End of year $406,897,032 $353,641,572 Undistributed net investment income $ 888,720 $ 887,561 12 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 investment operations Distributions to shareholders Year - Share Class Net asset value, beginning of year Net investment income (loss) (a) Net realized and unrealized gain (loss) Total from investment operations From net investment income From net realized gains Total distributions Net asset value, end of year Total return (b) Net assets, end of period (in 000s) Ratio of net expenses to average net assets Ratio of total expenses to average net assets Ratio of net investment income (loss) to average net assets Portfolio turnover rate (c) FOR THE FISCAL YEARS ENDED DECEMBER 31, 2017 - Institutional $11.33 $ 0.06 $ 1.46 $ 1.52 $(0.07) $(0.32) $(0.39) $12.46 13.36% $ 30 0.68% 0.86% 0.46% 64% 2017 - Service 11.32 0.03 1.46 1.49 (0.04) (0.32) (0.36) 12.45 13.11 406,867 0.93 1.11 0.21 64 2016 - Institutional 10.89 (0.03) 0.52 0.49 (0.05) (0.05) 11.33 4.49 27 0.74 0.89 (0.25) 260 2016 - Service 10.88 0.02 0.45 0.47 (0.03) (0.03) 11.32 4.33 353,615 1.00 1.13 0.20 260 2015 - Institutional 11.82 0.01 (0.67) (0.66) (0.03) (0.24) (0.27) 10.89 (5.52) 1,008 0.75 0.92 0.12 504 2015 - Service 11.82 (0.02) (0.67) (0.69) (0.01) (0.24) (0.25) 10.88 (5.82) 354,706 1.00 1.17 (0.16) 504 2014 - Institutional 11.46 0.08 0.41 0.49 (0.03) (0.10) (0.13) 11.82 4.23 739 0.77 1.01 0.68 304 2014 - Service 11.47 (d) 0.45 0.45 (d) (0.10) (0.10) 11.82 3.95 267,720 1.03 1.24 0.04 304 2013 - Institutional (Commenced October 16, 2013) 11.41 0.01 0.34 0.35 (0.02) (0.28) (0.30) 11.46 3.17 26 0.81 (e) 1.09 (e) 0.33 (e) 195 2013 - Service 10.36 (0.02) 1.42 1.40 (0.01) (0.28) (0.29) 11.47 13.57 136,116 1.04 1.51 (0.21) 195 (a) Calculated based on the average shares outstanding methodology. (b) 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. Total returns for periods less than one full year are not annualized. (c) The Fund s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short term investments and certain derivatives. If such transactions were included, the Fund s portfolio turnover rate may be higher. (d) Amount is less than $0.005 per share. (e) Annualized. The accompanying notes are an integral part of these financial statements. 13

Notes to Financial Statements December 31, 2017 1. ORGANIZATION Goldman Sachs Variable Insurance Trust (the Trust or VIT ) 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 Global Trends Allocation Fund (the Fund ). The Fund is a diversified portfolio under the Act offering two classes of shares Institutional and Service Shares. Shares of the Trust are offered to separate accounts of participating life insurance companies for the purpose of funding variable annuity contracts and variable life insurance policies. Goldman Sachs Asset Management, L.P. ( GSAM ), an affiliate of Goldman Sachs & Co. LLC (formerly, Goldman, Sachs & Co.) ( Goldman Sachs ), serves as investment adviser to the Fund pursuant to a management agreement (the Agreement ) with the Trust. 2. SIGNIFICANT ACCOUNTING POLICIES The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ( GAAP ) and require management to make estimates and assumptions that may affect the reported amounts and disclosures. Actual results may differ from those estimates and assumptions. A. Investment Valuation The Fund s valuation policy is to value investments at fair value. B. Investment Income and Investments Investment income includes interest income, dividend income, and securities lending income. Interest income is accrued daily and adjusted for amortization of premiums and accretion of discounts. Dividend income is recognized on ex-dividend date or, for certain foreign securities, as soon as such information is obtained subsequent to the ex-dividend date. Investment transactions are reflected on trade date. Realized gains and losses are calculated using identified cost. Investment transactions are recorded on the following business day for daily net asset value ( NAV ) calculations. Investment income is recorded net of any foreign withholding taxes, less any amounts reclaimable. The Fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any foreign capital gains tax is accrued daily based upon net unrealized gains, and is payable upon sale of such investments. For derivative contracts, realized gains and losses are recorded upon settlement of the contract. C. Class Allocations and Expenses Investment income, realized and unrealized gain (loss), if any, and non-class specific expenses of the Fund are allocated daily based upon the proportion of net assets of each class. Non-class specific expenses directly incurred by the Fund are charged to the Fund, while such expenses incurred by the Trust are allocated across the Fund on a straightline and/or pro-rata basis depending upon the nature of the expenses. Class-specific expenses, where applicable, are borne by the respective share classes and include Distribution and Service and Transfer Agency fees. D. Federal Taxes and Distributions to Shareholders It is the Fund s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended (the Code ), applicable to regulated investment companies (mutual funds) and to distribute each year substantially all of its investment company taxable income and capital gains to its shareholders. Accordingly, the Fund is not required to make any provisions for the payment of federal income tax. Distributions to shareholders are recorded on the ex-dividend date. Income and capital gains distributions, if any, are declared and paid annually. Net capital losses, if any, are carried forward to future fiscal years and may be used to the extent allowed by the Code to offset any future capital gains. Losses that are carried forward will retain their character as either short-term or long-term capital losses. Utilization of capital loss carryforwards will reduce the requirement of future capital gains distributions. The characterization of distributions to shareholders for financial reporting purposes is determined in accordance with federal income tax rules, which may differ from GAAP. The source of the Fund s distributions may be shown in the accompanying financial statements as either from net investment income, net realized gain or capital. Certain components of the Fund s net assets on the Statement of Assets and Liabilities reflect permanent GAAP/tax differences based on the appropriate tax character. E. Foreign Currency Translation The accounting records and reporting currency of the Fund are maintained in United States ( U.S. ) dollars. Assets and liabilities denominated in foreign currencies are translated into U.S. dollars using the current exchange 14

2. SIGNIFICANT ACCOUNTING POLICIES (continued) rates at the close of each business day. The effect of changes in foreign currency exchange rates on investments is included within net realized and unrealized gain (loss) on investments. Changes in the value of other assets and liabilities as a result of fluctuations in foreign exchange rates are included in the Statement of Operations within net change in unrealized gain (loss) on foreign currency translation. Transactions denominated in foreign currencies are translated into U.S. dollars on the date the transaction occurred, the effects of which are included within net realized gain (loss) on foreign currency transactions. 3. INVESTMENTS AND FAIR VALUE MEASUREMENTS U.S. GAAP defines the fair value of a financial instrument as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price); the Fund s policy is to use the market approach. GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The levels used for classifying investments are not necessarily an indication of the risk associated with investing in these investments. The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active or financial instruments for which significant inputs are observable (including, but not limited to, quoted prices for similar investments, interest rates, foreign exchange rates, volatility and credit spreads), either directly or indirectly; Level 3 Prices or valuations that require significant unobservable inputs (including GSAM s assumptions in determining fair value measurement). Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Fund s policy, transfers between different levels of the fair value hierarchy resulting from such changes are deemed to have occurred as of the beginning of the reporting period. The Board of Trustees ( Trustees ) has approved Valuation Procedures that govern the valuation of the portfolio investments held by the Fund, including investments for which market quotations are not readily available. The Trustees have delegated to GSAM day-to-day responsibility for implementing and maintaining internal controls and procedures related to the valuation of the Fund s investments. To assess the continuing appropriateness of pricing sources and methodologies, GSAM regularly performs price verification procedures and issues challenges as necessary to third party pricing vendors or brokers, and any differences are reviewed in accordance with the Valuation Procedures. A. Level 1 and Level 2 Fair Value Investments The valuation techniques and significant inputs used in determining the fair values for investments classified as Level 1 and Level 2 are as follows: Equity Securities Equity securities traded on a U.S. securities exchange or the NASDAQ system, or those located on certain foreign exchanges, including but not limited to the Americas, are valued daily at their last sale price or official closing price on the principal exchange or system on which they are traded. If there is no sale or official closing price or such price is believed by GSAM to not represent fair value, equity securities are valued at the last bid price for long positions and at the last ask price for short positions. To the extent these investments are actively traded, they are classified as Level 1 of the fair value hierarchy, otherwise they are generally classified as Level 2. Unlisted equity securities for which market quotations are available are valued at the last sale price on the valuation date, or if no sale occurs, at the last bid price. Unlisted equities are generally classified as Level 2 (fair valued and single source broker securities may be treated differently). Securities traded on certain foreign securities exchanges are valued daily at fair value determined by an independent fair value service (if available) under Valuation Procedures approved by the Trustees and consistent with applicable regulatory guidance. The independent fair value service takes into account multiple factors including, but not 15

Notes to Financial Statements (continued) December 31, 2017 3. INVESTMENTS AND FAIR VALUE MEASUREMENTS (continued) limited to, movements in the securities markets, certain depositary receipts, futures contracts and foreign currency exchange rates that have occurred subsequent to the close of the foreign securities exchange. These investments are generally classified as Level 2 of the fair value hierarchy. Underlying Funds (including Money Market Funds) Underlying Funds ( Underlying Funds ) include other investment companies and exchange-traded funds ( ETFs ). Investments in the Underlying Funds (except ETFs) are valued at the NAV per share of the Institutional Share class on the day of valuation. ETFs are valued daily at the last sale price or official closing price on the principal exchange or system on which the investment is traded. Because the Fund invests in Underlying Funds that fluctuate in value, the Fund s shares will correspondingly fluctuate in value. To the extent these investments are actively traded, they are classified as Level 1 of the fair value hierarchy, otherwise they are generally classified as Level 2. For information regarding an Underlying Fund s accounting policies and investment holdings, please see the Underlying Fund s shareholder report. Debt Securities Debt securities for which market quotations are readily available are valued daily on the basis of quotations supplied by dealers or an independent pricing service approved by the Trustees. The pricing services may use valuation models or matrix pricing, which consider: (i) yield or price with respect to bonds that are considered comparable in characteristics such as rating, interest rate and maturity date or (ii) quotations from securities dealers to determine current value. With the exception of treasury securities of G8 countries, which are generally classified as Level 1, these investments are generally classified as Level 2 of the fair value hierarchy. Derivative Contracts A derivative is an instrument whose value is derived from underlying assets, indices, reference rates or a combination of these factors. The Fund enters into derivative transactions to hedge against changes in interest rates, securities prices, and/or currency exchange rates, to increase total return, or to gain access to certain markets or attain exposure to other underliers. Exchange-traded derivatives, including futures and options contracts, are valued at the last sale or settlement price and typically fall within Level 1 of the fair value hierarchy. Over-the-counter ( OTC ) and centrally cleared derivatives are valued using market transactions and other market evidence, including market-based inputs to models, calibration to market-clearing transactions, broker or dealer quotations, or other alternative pricing sources. Where models are used, the selection of a particular model to value OTC and centrally cleared derivatives depends upon the contractual terms of, and specific risks inherent in, the instrument, as well as the availability of pricing information in the market. Valuation models require a variety of inputs, including contractual terms, market prices, yield curves, credit curves, measures of volatility, voluntary and involuntary prepayment rates, loss severity rates and correlations of such inputs. For OTC and centrally cleared derivatives that trade in liquid markets, model inputs can generally be verified and model selection does not involve significant management judgment. OTC and centrally cleared derivatives are classified within Level 2 of the fair value hierarchy when significant inputs are corroborated by market evidence. i. Futures Contracts Futures contracts are contracts to buy or sell a standardized quantity of a specified commodity or security and are valued based on exchanged settlement prices or independent market quotes. Futures contracts are valued at the last settlement price, or in the absence of a sale, the last bid price for long positions and at the last ask price for short positions, 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 deposits cash or securities in an account on behalf of the broker in an amount sufficient to meet the initial margin requirement. Subsequent payments are made or received by the Fund equal to the daily change in the contract value and are recorded as variation margin receivable or payable with a corresponding offset to unrealized gains or losses. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund and cash collateral received, if any, is reported separately on the Statement of Assets and Liabilities as receivables/payables for collateral on certain derivative contracts. Non-cash collateral pledged by the Fund, if any, is noted in the Schedule of Investments. B. Level 3 Fair Value Investments To the extent that significant inputs to valuation models and other alternative pricing sources are unobservable, or if quotations are not readily available, or if GSAM believes that such quotations do not accurately reflect fair value, the fair value of the Fund s investments may be determined under Valuation Procedures approved by the 16

3. INVESTMENTS AND FAIR VALUE MEASUREMENTS (continued) Trustees. GSAM, consistent with its procedures and applicable regulatory guidance, may make an adjustment to the most recent valuation prices of either domestic or foreign securities in light of significant events to reflect what it believes to be the fair value of the securities at the time of determining the Fund s NAV. Significant events which could affect a large number of securities in a particular market may include, but are not limited to: significant fluctuations in U.S. or foreign markets; market dislocations; market disruptions; or unscheduled market closings. Significant events which could also affect a single issuer may include, but are not limited to: corporate actions such as reorganizations, mergers and buy-outs; ratings downgrades; and bankruptcies. C. Fair Value Hierarchy The following is a summary of the Fund s investments and derivatives classified in the fair value hierarchy as of December 31, 2017: Investment Type Level 1 Level 2 Level 3 Assets Exchange Traded Funds $142,728,048 $ $ Investment Companies 223,975,274 Total $366,703,322 $ $ Derivative Type Assets (a) Futures Contracts $ 1,605,255 $ $ Liabilities (a) Futures Contracts $ (516,237) $ $ (a) Amount shown represents unrealized gain (loss) at fiscal year end. For further information regarding security characteristics, see the Schedule of Investments. 4. INVESTMENTS IN DERIVATIVES The following table sets forth, by certain risk types, the gross value of derivative contracts (not considered to be hedging instruments for accounting purposes) as of December 31, 2017. These instruments were used as part of the Fund s investment strategies and to obtain and/or manage exposure related to the risks below. The values in the table below exclude the effects of cash collateral received or posted pursuant to these derivative contracts, and therefore are not representative of the Fund s net exposure. Risk Statement of Assets and Liabilities Assets (a) Statement of Assets and Liabilities Liabilities (a) Equity Variation margin on futures $1,605,255 Variation margin on futures $(480,550) Interest Rate Variation margin on futures (35,687) Total $1,605,255 $(516,237) (a) Includes unrealized gain (loss) on futures contracts described in the Additional Investment Information section of the Schedule of Investments. Only the variation margin as of December 31,2017 is reported within the Statement of Assets and Liabilities. The following table sets forth, by certain risk types, the Fund s gains (losses) related to these derivatives and their indicative volumes for the fiscal year ended December 31, 2017. These gains (losses) should be considered in the context that these derivative contracts may have been executed to create investment opportunities and/or economically hedge certain investments, and 17