AQR Diversifying Strategies Fund

QDSIX
  • daily nav $11.11
  • change $-0.03
  • daily return -0.27%
  • inception date 6/8/2020
  • AUM $25MM

As of June 18, 2021

  About the Fund

Investment Objective

Seeks capital appreciation.

A Diversified Approach to Alternative Investing

The Fund seeks attractive long-term risk-adjusted returns through strategic allocations to AQR alternative mutual funds. 

Investment Approach

Leveraging AQR’s research and 20-year track record in alternative investing, the Fund is designed to complement an investor’s traditional stock and bond portfolio. The Fund invests in a portfolio of AQR mutual funds, providing exposure to both Active Multi-Asset strategies and Absolute Return strategies:

  • Active Multi-Asset Strategies: seek to provide tactical and risk-managed allocations among major asset classes across global markets. These strategies are expected to have some correlation to traditional asset classes over the long-term.


  • Absolute Return Strategies: seek to capture returns from well-established investments styles, such as value and momentum. Certain strategies may also provide exposure to less accessible types of returns. These strategies tend to be uncorrelated to traditional asset classes over the long-term.

Why Invest in the Diversifying Strategies Fund?

A Core Alternative Allocation

The Fund seeks to provide an all-in-one solution for investors seeking a strategic, long-term approach to alternatives.

Low Exposure to Traditional Markets

The Fund seeks reduced sensitivity to stock and bond market movements, which can help improve portfolio resilience across various market environments.

Multiple Sources of Return

The Fund offers diversified exposure to a range of alternative strategies and return sources.

Strategic Fund Allocations

  Performance

Annualized Total Returns

As of May 31, 2021

MTD YTD Since Inception 6/8/2020 Gross Expense Ratio Net Expense Ratio*
AQR Diversifying Strategies Fund 1.69% 10.03% 16.31% 2.59% 1.54%
ICE BofAML US 3M T-Bill 0.00% 0.03% 0.11%
AQR Diversifying Strategies Fund ICE BofAML US 3M T-Bill
MTD 1.69% 0.00%
YTD 10.03% 0.03%
Since Inception 6/8/2020 16.31% 0.11%
Gross Expense Ratio 2.59%
Net Expense Ratio* 1.54%

As of March 31, 2021

QTD YTD Since Inception 6/8/2020 Gross Expense Ratio Net Expense Ratio*
AQR Diversifying Strategies Fund 7.04% 7.04% 13.15% 2.59% 1.54%
ICE BofAML US 3M T-Bill 0.02% 0.02% 0.11%
AQR Diversifying Strategies Fund ICE BofAML US 3M T-Bill
QTD 7.04% 0.02%
YTD 7.04% 0.02%
Since Inception 6/8/2020 13.15% 0.11%
Gross Expense Ratio 2.59%
Net Expense Ratio* 1.54%
  Managers

Ronen Israel

Principal

  • 25 years of experience
  • 21 years at AQR

M.A., Columbia University

B.S., B.A.S., University of Pennsylvania

Scott Metchick

Principal

  • 33 years of experience
  • 9 years at AQR

B.S., Lehigh University

Lars Nielsen

Lars N. Nielsen

Principal

  • 21 years of experience
  • 21 years at AQR

M.S., B.S., University of Copenhagen

Yao Hua Ooi

Principal

  • 16 years of experience
  • 16 years at AQR

B.S., B.S., University of Pennsylvania

Ashwin Thapar

Principal

  • 12 years of experience
  • 12 years at AQR

B.A. University of Pennsylvania

  Fees & Minimums

Investment Minimums

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Institutional Investors None
Individual Investors $5 Million
Accounts Offered by Financial Advisors None

Shareholder Fees

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Sales Load None
Deferred Sales Load None
Redemption Fees None

Annual Fund Operating Expenses

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Management Fee 0.00%
Distribution (12b-1) Fee None
Other Expenses  
     Dividends On Short Sales and/or Interest Expense None
     All Other Expenses 1.25%
Acquired Fund Fees 1.34%
Gross Expenses 2.59%
Less: Fee Waivers and/or Expense Reimbursements 1.05%
Net Expenses* 1.54%

Information about how each Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 will be available no later than August 31. Please click here to view the most recent Form N-PX for the AQR Funds.

PRINCIPAL RISKS:

There are risks involved with investing including the possible loss of principal. Past performance does not guarantee future results. 

The Fund is new and has a limited operating history. 

The Fund is not a complete investment program and should be considered only as one part of an investment portfolio. The Fund is more appropriate for long-term investors who can bear the risk of short-term NAV fluctuations, which at times, may be significant and rapid, however, all investments long- or short-term are subject to risk of loss. Due to the Fund’s strategy of investing in underlying funds (“affiliated funds”), shareholders bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such affiliated funds.

The affiliated funds will enter into short sales and/or make investments in futures contracts, forward contracts, options, swaps and other derivative instruments. These derivative instruments provide the economic effect of financial leverage by creating additional investment exposure to the underlying instrument, as well as the potential for greater loss. If an affiliated fund uses leverage through activities such as entering into short sales or purchasing derivative instruments, the affiliated fund has the risk that losses may exceed the net assets of the affiliated fund. The Fund could miss attractive investment opportunities by underweighting strategies that subsequently experience significant returns and could lose value by overweighting strategies that subsequently experience significant declines.

Derivatives may be more sensitive to changes in economic or market conditions than other types of investments; this could result in losses that significantly exceed the fund’s original investment. Alternative investments strategies can be subject to increased risks and costs and investors must determine if the addition of these types of investments is appropriate for their specific financial objectives. Diversification and asset allocation do not ensure a profit or guarantee against a loss. 

An investment in accordance with the Fund’s strategy is subject to risks, including the possibility that the value of the portfolio holdings may fluctuate in response to events specific to the companies in which the affiliated funds invest, as well as economic, political or social events in the United States or abroad. International investments are subject to certain risks, including currency movements and social, economic and political uncertainties, which could increase volatility. These risks are heightened in emerging markets. Commodities and futures generally are volatile and involve a high degree of risk. Investments in alternative strategies employ complex investment strategies and carry substantial risk. There can be no assurance a fund’s investment objective or strategies will be successful. Investing involves risk, including risk of loss. 

Given the complexity of the investments and strategies of the affiliated funds, the Multi-Strategy Team relies heavily on quantitative models and information and data supplied or made available by third parties. There is no guarantee that the use of the models and data will help the affiliated funds achieve their objectives. When selecting investments for the Fund, the AQR Multi-Strategy Team limits its selection to AQR mutual funds, so they will select AQR mutual funds even in cases where there are third party mutual funds that are less expensive, or that have longer track records or higher historical returns. AQR has a conflict of interest when it establishes the Fund’s target asset classes, asset allocation objectives or ongoing allocations, because it will allocate only to asset classes where AQR mutual funds are available.

The information is intended to be educational and is not tailored to the investment needs of any specific investor. The information presented herein should not be the primary basis of your investment decisions. You should carefully research any fund you may be considering prior to making an investment decision. Another allocation and other investments, including non-AQR funds, having similar risk and return characteristics may be available. We suggest only AQR funds for the Fund and other fund families may have other options available, including funds with different features and costs.

We can change or update the Fund at any time. Neither AQR nor ALPS will notify you when they are updated. The Fund does not attempt to consider the effect of income taxes on performance or returns and do not reflect any opinion on the tax-appropriateness of the portfolio for any investor. The Fund does not consider the effect of taxes, fees and/or expenses associated with investing. Please consult with your investment or tax advisor, if applicable, prior to taking action.

AQR is the investment adviser to the AQR mutual funds included in the Fund and is entitled to receive an advisory fee from each fund, as reflected in the fund’s prospectus. Additional investments in the AQR mutual funds selected the Fund can lead to additional advisory fees paid to AQR.

 

Investment in any of the funds described on this website carries substantial risk, including the possible loss of principal. There is no guarantee that the investment objectives of the funds will be achieved and returns may vary significantly over time. Investment in the funds described on this website is not suitable for all investors. Not all funds or share classes are available to all investors.

Fund offering documents contain risk warnings that are specific to each fund. Investors should only invest in a fund once they have thoroughly reviewed the prospectus and Key Investor Information Document (“KIID”) for the fund and carefully considered the relevant investment objectives, risks, charges and fees. Investors may wish to consult an independent financial advisor for personal and specific investment advice before investing.

Umbrella Fund:
The Fund is a sub-fund of AQR UCITS Funds, a Luxembourg based UCITS of which the management company is FundRock Management Company S.A.

The information contained on this website is for informational purposes only and does not constitute an offer or invitation to buy, sell or otherwise transact in any security. The information on this site is directed only at persons or entities in any jurisdiction or country where such access to information contained on this website and use of such information is not contrary to local law or regulation. Accordingly, all persons who access this website are required to inform themselves of and to comply with any such restrictions. The prospectus, KIID and the latest periodic reports for each fund are available free of charge.

Past performance does not guarantee future results.

AQR Capital Management (Europe) LLP, a U.K. limited liability partnership, is authorized by the U.K. Financial Conduct Authority (“FCA”) for advising on investments (except on Pension Transfers and Pension Opt Outs), arranging (bringing about) deals in investments, dealing in investments as agent, managing a UCITS, managing an unauthorized AIF and managing investments. This material has been approved to satisfy UK FCA COBS 4.

The use of derivatives, forward and futures contracts, and commodities exposes the Fund to additional risks including increased volatility, lack of liquidity, insolvency and possible losses greater than the Fund’s initial investment as well as increased transaction costs. Commodity prices react, among other things, to economic factors such as changing supply and demand relationships, weather conditions and other natural events, all of which may affect your investment.

The Fund is exposed to the currency markets which may be highly volatile. Large price swings can occur in such markets within very short periods and may result in your investment suffering a loss.

The Fund may be exposed to liquidity risk where, due to a lack of marketability, the Fund’s investments cannot be bought or sold quickly enough to prevent or minimize a loss.

The Fund is exposed to concentration risk as it may have increased exposure to a particular asset, reference rate or index. A fall in value of the asset, reference rate or index can result in a greater loss to the Fund which may be more than the amount borrowed or invested.

Your investment in the Fund is not guaranteed and is at risk. You may lose some or all of your investment.

The Fund relies upon the performance of the investment manager of the Fund. If the investment manager performs poorly the value of your investment is likely to be adversely affected.

More information in relation to risks in general may be found in the “Risk Factors” section of the prospectus.