STRATS SM TRUST FOR Goldman Sachs Cap I SEC SERIES 2005-3 Annual Report - How They Did This Year

I’m here to help you break down the latest report for this investment. Think of this as a plain-English guide to help you understand your money, without the confusing Wall Street jargon.

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1. What does this trust do and how did it perform?

This trust was created in 2005 to hold $100 million in Goldman Sachs debt. Your certificates represent a small piece of that debt. The trust acts as a middleman: it collects interest payments from Goldman Sachs and passes them directly to you, after taking out small administrative fees.

2. Financial performance

The trust’s only income is the interest paid on the Goldman Sachs debt. This debt pays a floating interest rate based on the SOFR benchmark plus 0.75%. In 2025, the trust collected and paid out about $5.2 million to investors. Because the trust passes everything through to you, its own profit remains at zero.

3. Major wins and challenges

The trust performed reliably this year. It made all 12 monthly payments to investors on time. Goldman Sachs met its obligations, allowing the trust to distribute 100% of the interest it received. The trust continues to maintain the necessary SEC filings required by the original 2005 agreement.

4. Financial health

The trust’s assets consist almost entirely of the $100 million Goldman Sachs debt. It carries no debt of its own and holds enough cash to cover minor trustee fees—usually less than $50,000 a year. Your investment’s safety depends entirely on the financial strength of Goldman Sachs, which currently holds a solid "A" credit rating.

5. Key risks

• Credit Risk: If Goldman Sachs struggles financially or stops paying interest, the trust cannot pay you.
• Interest Rate Risk: Because the debt pays a floating rate, your monthly income will change as benchmark interest rates (SOFR) rise or fall.
• Liquidity Risk: These certificates are rarely traded. If you need to sell your shares, you might find few buyers, which could force you to accept a lower price than the assets are actually worth.

6. Leadership and operations

There is no CEO or board of directors. The trust follows a set, unchanging agreement established in 2005. U.S. Bank serves as the trustee, handling the paperwork to ensure your payments arrive on schedule.

7. Future outlook

The trust will continue these monthly payments until February 15, 2035. On that date, Goldman Sachs will pay back the $100 million, and the trust will close. You can expect steady monthly income until then, assuming Goldman Sachs remains financially stable.

8. Market trends

The trust successfully transitioned to the SOFR benchmark, replacing the older LIBOR standard. No other major regulatory changes are expected before the trust closes in 2035.

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Is this right for you? This investment is designed for those looking for steady, monthly income backed by a major financial institution. Because the interest rate is floating, your income will fluctuate with the broader economy. If you are looking for a long-term, predictable income stream and are comfortable with the credit profile of Goldman Sachs, this may align with your goals. If you need to access your cash quickly, keep in mind that these certificates can be difficult to sell on short notice.