Stone Ridge 2048 Inflation-Linked Long Duration Fund (LIAB)

Overview

The fund described operates as an Exchange-Traded Fund (ETF) with a clear focus on investing in debt securities, primarily those issued by the U.S. Treasury. It targets Treasury Inflation-Protected Securities (TIPS) and money market funds holding U.S. government bonds or engaging in repurchase agreements secured by such bonds. The fund’s investment strategy is designed to achieve its investment objective by capitalizing on securities that offer protection against inflation, ensuring that investors' purchasing power is preserved over time. This objective aligns with the needs of investors looking for safe investment havens, especially in periods of economic uncertainty where inflation threatens the real value of capital.

Products and Services

• Treasury Inflation-Protected Securities (TIPS)

  The fund invests predominantly in TIPS, which are U.S. Treasury securities designed to protect investors from inflation. These securities' principal value is adjusted according to changes in the Consumer Price Index (CPI). This ensures that the investment grows with inflation, providing a real rate of return that is immune to the eroding effects of rising prices. TIPS are suitable for investors seeking protection against inflation, particularly those with a conservative investment profile or nearing retirement.

• Money Market Funds in U.S. Government Bonds

  Another key area of investment for the fund is money market funds that focus exclusively on U.S. government bonds. These funds offer high liquidity and safety, investing primarily in short-term, high-quality securities issued by the U.S. government. This strategy appeals to investors seeking a stable and relatively risk-free investment, providing a safe haven during volatile market conditions or economic downturns.

• Repurchase Agreements Collateralized by U.S. Government Securities

  The fund also engages in repurchase agreements (repos) collateralized by U.S. government securities. In these transactions, the fund sells government securities to investors with an agreement to repurchase them at a later date at a higher price. This investment strategy is designed to generate additional income for the fund while maintaining a high level of security, due to the collateral nature of the agreements. Repos are particularly appealing for liquidity management, as they allow the fund to leverage its existing portfolio of U.S. government securities to meet short-term liquidity needs or seize investment opportunities.