Stone Ridge 2050 Inflation-Linked Long Duration Fund (LIAE)

Overview

The fund is structured as an Exchange-Traded Fund (ETF) focusing on mitigating the impacts of inflation on investment returns. It primarily achieves this objective through investments in various types of U.S. Treasury debt instruments. The centerpiece of its investment strategy is the allocation of assets into Treasury Inflation-Protected Securities (TIPS), which are designed to increase in value along with inflation, protecting investors' purchasing power. Additionally, the fund places a portion of its assets into money market funds, which in turn invest in U.S. government bonds or engage in repurchase agreements fully backed by U.S. government securities. This blend of investments aims at providing a balanced approach towards capital appreciation and income generation, while also ensuring a high level of liquidity and security, given the backing by the U.S. government.

Products and Services

• Treasury Inflation-Protected Securities (TIPS)

  TIPS are the fund’s primary investment vehicle, chosen for their direct link to inflation rates. These securities are designed to adjust their principal value in accordance with changes in the Consumer Price Index (CPI). As inflation rises, the principal value of TIPS increases, and they pay interest on the adjusted principal. This mechanism makes TIPS an effective tool for preserving the real value of the fund’s assets over time.

• Money Market Funds

  As part of its strategy to maintain high liquidity and secure investments, the fund invests in money market funds that specialize in U.S. government bonds or repurchase agreements collateralized by U.S. government securities. These money market funds provide a safe, albeit lower-yield, option for parking assets in instruments that can be quickly converted into cash, thus offering a buffer against market volatility and providing steady, if modest, income.