STRATS(SM) Trust For Goldman Sachs Capital I Securities, Series 2005-1 Annual Report

I’m here to help you understand the latest report for this investment. Think of this as a simple guide to what is happening under the hood, without the confusing financial jargon.

1. What is this investment?

This is not a typical company that makes products. It is a Trust created on June 29, 2005. It holds $50 million in 6.345% Trust Preferred Securities from Goldman Sachs Capital I. If you own these certificates, you receive a share of the interest payments from those notes. The Trust has no active business; it simply collects and passes these payments to you.

2. Financial performance

Because this is a passive Trust, it does not aim for growth. Its performance depends entirely on the 6.345% interest rate of the underlying Goldman Sachs securities. Throughout 2025, the Trust paid out interest as scheduled, after subtracting small administrative costs. Monthly filings confirm the Trust successfully processed these payments, keeping the yield steady for certificate holders.

3. Major wins and challenges

The Trust’s "success" is its stability. It met all its obligations in 2025 without any issues. There were no missed payments, defaults, or legal problems. It acted as a reliable bridge for your interest payments, providing a predictable income stream all year.

4. Financial health

The Trust is on "autopilot." It has no debt, no employees, and very low costs. Its health depends entirely on the financial strength of The Goldman Sachs Group, Inc. As long as Goldman Sachs stays in business and pays its debts, the Trust remains stable and compliant.

5. Key risks

The main risk is credit concentration. Because the Trust holds only one asset, any trouble at Goldman Sachs directly threatens your investment. You also face liquidity risk. Because these are niche investments, they don't trade often. You might find it hard to sell your shares quickly without accepting a lower price. Finally, there is interest rate risk. If market interest rates rise, your fixed 6.345% return may look less attractive, which could lower the market price of your certificates.

6. Competitive positioning

This is a niche, fixed-income investment. It does not compete with stocks or growth funds. Instead, it competes with high-grade corporate bonds. It is designed for investors who want a steady yield backed by a major bank, rather than those looking for big price gains.

7. Strategy and management

There is no management team. The Trust follows the rules set in 2005. U.S. Bank Trust National Association acts as the Trustee, handling basic record-keeping and payments. The strategy has not changed since the Trust began.

8. Future outlook

The Trust will continue its current role until the underlying Goldman Sachs securities mature or are redeemed. Expect the same payment schedule as long as Goldman Sachs meets its obligations.

9. Market trends

The Trust is largely immune to modern market trends. It follows static, long-term agreements and remains compliant with SEC rules, operating independently of the day-to-day market volatility that impacts active companies.

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Is this right for you? This investment is best suited for those looking for a predictable, fixed income stream rather than capital appreciation. Before deciding, consider whether you are comfortable with the long-term credit risk of Goldman Sachs and whether you have the patience to hold an asset that may be difficult to sell quickly on the secondary market.