Stone Ridge Trust VI (LFAE)

Overview

The fund is a specialized Exchange-Traded Fund (ETF) that aims to achieve its investment objective by concentrating on debt securities issued by the U.S. Treasury. Its focus includes not only U.S. government bonds but also extends to money market funds that primarily invest in these types of securities or in repurchase agreements fully backed by such bonds. Given the historical lack of credit-related defaults on U.S. Treasury securities, these investments are often considered to be free of credit risk, offering a relatively safe investment option for those looking to preserve capital while earning a return on their investment.

Products and Services

• Debt Securities Issued by the U.S. Treasury:

  These are governmental bonds that the fund invests in, which are securities that the United States Department of the Treasury issues. Due to the backing by the full faith and credit of the U.S. government, these securities are highly regarded for their safety and reliability, making them a cornerstone of the fund's investment strategy.

• Money Market Funds Specializing in U.S. Government Bonds:

  The fund allocates part of its capital to money market funds that, in turn, invest strictly in U.S. government bonds or repurchase agreements. These money market funds provide liquidity and safety, contributing to the overall objective of preserving capital while ensuring a steady return. The investments in these funds are selected based on their alignment with the fund’s risk tolerance and investment strategy, focusing on minimising credit risk and enhancing portfolio stability.

• Repurchase Agreements Collateralized by U.S. Government Securities:

  Another key component of the fund’s strategy is investing in repurchase agreements that are fully collateralized by U.S. government securities. These agreements involve the sale of securities with the agreement to repurchase them at a later date, often used for short-term funding. The collateralization by U.S. government securities adds an extra layer of security, making these investments virtually risk-free in terms of credit risk, while providing a predictable source of income.