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AQR Launches Sustainable Long-Short Equity Carbon Aware Fund

December 16, 2021

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AQR Capital Management, LLC today announced the launch of its AQR Sustainable Long-Short Equity Carbon Aware Fund. 

In recent years, the importance of global issues such as climate change and workplace inequality have encouraged investors to prioritize their ESG efforts. AQR believes ESG-conscious investors should not have to choose between a responsible investment approach and a well-diversified portfolio that incorporates alternative strategies. The Fund aims to help investors meet their ESG goals, while also providing exposure to multiple sources of return that may not be available through a traditional investment strategy.

With twenty years of experience in systematic, sustainable investing, AQR believes it is uniquely positioned to expand its liquid alternatives offering to include the industry’s first sustainable long-short equity mutual fund. The Fund invests long and short across global equity markets, integrating certain Environmental, Social, and Governance (“ESG”) considerations into its security selection and portfolio construction processes and seeking to hedge climate risks. 

Compared to long-only approaches that may prohibit exposure to a company with poor ESG characteristics, the Fund’s approach of shorting companies with poor ESG profiles may allow investors to more strongly express their ESG views and more effectively achieve ESG goals, such as reducing the carbon footprint of their portfolio. 

As part of its carbon-aware approach, the Fund seeks to help investors hedge against climate risk by incorporating multiple metrics of climate exposure, such as carbon emissions and fossil fuel reserves, in an effort to hedge against climate-related investment risks.

For more information, click here: AQR Sustainable Long-Short Equity Carbon Aware Fund (QNZIX, QNZNX, QNZRX).

Investment Objective: Seeks capital appreciation.

PRINCIPAL RISKS: 

Investing in securities that meet ESG criteria may result in the fund forgoing otherwise attractive opportunities, which may result in underperformance when compared to funds that do not consider ESG factors.

This Fund is new and has a limited operating history.

The Fund’s use of derivative instruments and short positions exposes the Fund to additional risks, such as increased volatility, risk of default by the counterparty to the transaction and possible losses greater (sometimes substantially) than the Fund's initial investment as well as increased transaction costs. Investments in foreign and emerging markets involves risks not associated with investments in US markets, such as currency fluctuations and political and regulatory uncertainty.  Funds that have exposure to mid and small-cap companies generally will experience greater price volatility. The Adviser employs various hedging techniques. It is not possible to hedge fully or perfectly against any risk, and hedging entails its own costs. 

Sustainable investing is qualitative and subjective by nature, and there is no guarantee that the environmental, social and governance (“ESG”) criteria utilized, judgment exercised, or techniques employed, by AQR will be successful, or that they will reflect the beliefs or values of any one particular investor. Certain information used to evaluate ESG factors, including, but not limited to, the carbon emissions of the companies to which the Fund has exposure, or a company’s commitment to, or implementation of, responsible practices is obtained through voluntary or third-party reporting, which may not be accurate or complete. ESG investing can limit the investment opportunities available to a portfolio, such as the exclusion of certain securities or issuers for nonfinancial reasons and, therefore, the portfolio may perform differently than or underperform other similar portfolios that do not apply ESG factors.
Please review the Fund’s prospectus for additional details regarding the risks associated with an investment in the FundThis Fund is not suitable for all investors. An investor considering the Funds should be able to tolerate potentially wide price fluctuations. 

An investment in the Fund is subject to risks, including the possibility that the value of the Fund’s portfolio holdings may fluctuate in response to events specific to the companies in which the Fund invests, as well as economic, political or social events in the United States or abroad. 

There are risks involved with investing including the possible loss of principal. Past performance does not guarantee future results. Diversification does not eliminate the risk of experiencing investment losses. This document is intended exclusively for the use of the person to whom it has been delivered by AQR and it is not to be reproduced or redistributed to any other person without AQR’s written consent.

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.