AQR Funds News
GREENWICH, Connecticut, June 8, 2020 — AQR Capital Management, LLC (“AQR”) today announced the launch of its AQR Diversifying Strategies Fund (Class I Shares: QDSIX; “The Fund"). The Fund is designed to be a single solution to gain exposure to liquid alternatives with attractive long-term risk-adjusted returns by investing in a portfolio of AQR’s alternative mutual funds.
Leveraging AQR’s 20-year track record in alternative investing and position as a leader in liquid alternatives, the Fund is intended to serve as a complementary addition to an investor’s traditional stock and bond portfolio. The Fund will offer exposure to multiple alternative return sources that are independent from traditional stock and bond markets, which creates the potential to do well in various market environments.
“We developed this Fund to help investors effectively meet the challenge of building an alternatives allocation, which can be a critical piece of a more stable portfolio,” said David Kabiller, Co-Founder of AQR. “By providing access to a diversified range of alternatives strategies, geographies and asset classes in one comprehensive vehicle, we believe the Fund offers our clients a valuable way to further their long-term investing goals.”
The Fund’s is managed by AQR’s Multi-Strategy team, which has deep expertise in creating custom solutions for some of the most sophisticated investors around the globe.
“Our approach is grounded in AQR’s systematic and disciplined investment process,” said Ashwin Thapar, Principal at AQR. “We aim to thoughtfully design the portfolio to provide diversified, systematic exposure to alternative return sources, with meticulous portfolio construction, risk management and trading to seek additional value for our clients.”
The Fund will provide exposure to two different types of alternative strategies – active multi-asset strategies and absolute return strategies. Active multi-asset strategies like risk parity will provide tactical, risk-balanced, active global market exposure. Absolute return strategies, such as managed futures, will seek to harvest well-established risk premia and provide exposure to less accessible, more proprietary sources of return.
The underlying AQR mutual funds that will comprise the portfolio are:
- AQR Multi-Asset Fund
- AQR Equity Market Neutral Fund
- AQR Global Macro Fund
- AQR Managed Futures Strategy HV Fund
- AQR Style Premia Alternative Fund
- AQR Diversified Arbitrage Fund
The Fund began operation on June 8, 2020. The Fund offers class R6, I and N shares.
AQR is a global investment management firm dedicated to delivering results for our clients. At the nexus of economics, behavioral finance, data and technology, AQR’s evolution over two decades has been a continuous exploration of what drives markets and how it can be applied to client portfolios. The firm is headquartered in Greenwich, Connecticut, with offices in Bangalore, Boston, Chicago, Frankfurt, Hong Kong, London, Los Angeles and Sydney. As of March 31, 2020, AQR and its affiliates had approximately $143 billion* in assets under management.
* Source: AQR. All figures approximate as of 3/31/2020; AUM includes assets managed by AQR and its advisory affiliates.
This is being provided solely for information purposes and does not constitute an offer or solicitation of an offer, or any advice or recommendation, to purchase securities or financial instruments, and may not be construed as such or serve as the basis of any investment decision.
Investment Objective: Seeks capital appreciation.
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.
Please refer to the prospectus or summary prospectus for complete information regarding all risks associated with the fund. An investor should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. To obtain a prospectus or summary prospectus containing this and other information, please call 1-866-290-2688 or download the file from www.aqrfunds.com. Read the prospectus carefully before you invest. There is no assurance the stated objectives will be met.
© AQR Funds are distributed by ALPS Distributors, Inc. AQR Capital Management, LLC is the Investment Manager of the Funds and a federally registered investment adviser. ALPS Distributors is not affiliated with AQR Capital Management.
Not FDIC Insured – No Bank Guarantee – May Lose Value