486BPOS: Stone Ridge Trust V Files Amendment for Alternative Lending Risk Premium Fund

Stone Ridge Trust V files an amendment to its registration statement for the Stone Ridge Alternative Lending Risk Premium Fund, detailing expense limitations and investment policies.

Summary

• Stone Ridge Trust V filed an amendment to its registration statement for the Stone Ridge Alternative Lending Risk Premium Fund.
• The amendment includes changes to the prospectus and Statement of Additional Information.
• From January 28, 2025, through March 18, 2026, Stone Ridge Asset Management LLC will waive its management fee and/or bear operating expenses to limit total annual fund operating expenses to 2.30% of average daily net assets, excluding certain expenses.
• The Adviser can recoup waived expenses within three years if the fund's expenses, after recoupment, do not exceed the lower of the expense limitation rate at the time of waiver or recoupment.
• The fund's investment objective is to achieve total return and current income by investing in alternative lending-related securities.
• The fund will invest at least 80% of its net assets in alternative lending-related securities.
• The fund will make quarterly repurchase offers for 5% to 25% of its outstanding shares at NAV.
• The minimum initial investment is $15 million, subject to certain exceptions.
• The fund is subject to various risks, including default risk, loan modification risk, and borrowing and leverage risk.

Sentiment

Score: 6

Explanation: The document is neutral in tone, primarily providing factual information about the fund's operations, investment strategies, and risk factors. While it highlights potential benefits, it also emphasizes the speculative nature and high degree of risk associated with the fund's investments.

Positives

• The Adviser has contractually agreed to waive its management fee and/or pay or otherwise bear operating and other expenses of the Fund to limit the Total Annual Fund Operating Expenses to 2.30% of the average daily net assets of the Fund.
• The Fund makes quarterly repurchase offers to repurchase a portion of the Shares to try to provide liquidity to shareholders.

Negatives

• The Fund invests primarily in unrated securities, some of which may be of credit quality comparable to securities rated below investment grade.
• An investment in the Funds Shares should be considered speculative and involving a high degree of risk, including the risk of a substantial loss of investment.
• The Funds Shares are not listed and the Fund does not currently intend to list its Shares for trading on any national securities exchange.
• Even though the Fund makes quarterly repurchase offers for Shares, the Fund is not required to repurchase more than 5% of its outstanding Shares each quarter, so investors should consider Shares of the Fund to be an illiquid investment.

Risks

• The fund is subject to default risk, loan modification risk, and borrowing and leverage risk.
• The fund invests primarily in unrated securities, some of which may be of credit quality comparable to securities rated below investment grade.
• The Fund is subject to valuation risk, which is the risk that one or more of the securities in which the Fund invests are priced incorrectly, due to factors such as incomplete data, market instability or human error.
• The Fund is subject to platform risk, which is the risk that a platform or loan servicer will fail to sufficiently value collateral, issue margin calls, close out a loan by liquidating all or a portion of a borrowers collateral or otherwise administer a loans margin requirements timely or at all, in which case a loan to which the Fund has exposure may be adversely impacted.

Future Outlook

The Fund intends to declare and pay dividends of substantially all net investment income and net realized capital gains at least annually.

Industry Context

The document highlights the growing alternative lending industry and the Fund's strategy to capitalize on the credit risk premium in this sector, while acknowledging the associated risks and regulatory landscape.

Comparison to Industry Standards

• The document does not provide a direct comparison to industry standards.
• However, it mentions the fund's investment in alternative lending platforms, which compete with traditional lenders like banks.
• The document also discusses the regulatory landscape and the need for platforms to comply with various laws and regulations.

Stakeholder Impact

• Shareholders are subject to various risks, including default risk, loan modification risk, and borrowing and leverage risk.
• Shareholders may benefit from the Adviser's agreement to limit total annual fund operating expenses.
• Shareholders may benefit from the Fund's quarterly repurchase offers.

Next Steps

• The Fund will continue to offer shares on a continuous basis.
• The Fund will make quarterly repurchase offers for its shares.
• The Adviser will continue to monitor the Fund's investments and manage its portfolio.

Key Dates