AQR TM Emerging Multi-Style Fund

QTELX
  • daily nav $10.17
  • change $0.08
  • daily return 0.79%
  • inception date 2/11/2015
  • AUM $363MM

As of December 06, 2019

  About the Fund

Investment Objective

Seeks long-term after-tax capital appreciation.

Disciplined Multi-Factor Investment Process

The Fund seeks to outperform capitalization-weighted indices through a disciplined, multi-factor investment approach that provides exposure to well-known drivers of returns, or investment styles. 

Investment Approach

The Fund seeks to outperform a broad equity index, investing in rigorously researched "styles." Styles are systematic investment strategies that have historically provided long-term positive returns in excess of their benchmarks.

This Fund employs three styles—value, momentum and quality—to construct a portfolio of Emerging large-cap and mid-cap companies. In addition to these three styles exhibiting positive excess returns in the long run, they have historically generated returns with low correlations (or the tendency to move in sync) with one another. 1 1 Close Source: Israel, Ronen, and Maloney, Thomas, 2013. “Understanding Style Premia.” AQR white paper.   Thus, a portfolio combining all three could help to provide a more robust, dependable stream of returns.

The Fund seeks to exploit the potential positive returns and diversification benefits of these investment styles by integrating all three into a single portfolio.

The Fund also employs tax management techniques designed to ensure investors receive lower distributions of realized capital gains than mutual funds that do not take tax consequences into account. However, investors should not expect that there will be no capital gain distributions.

 

 

Why Invest in the AQR TM Emerging Multi-Style Fund?

Opportunity to Outperform
The Fund seeks to outperform its benchmark by using a systematic, rules-based approach to select stocks for the portfolio. The result is a porfolio constructed without emotion, based on historically proven drivers of returns such as value, momentum, and quality/profitability.
Integrated Investment Approach
Rather than creating distinct sleeves of stocks that exhibit the most extreme characteristics of each style, the Fund instead integrates these ideas into one investment view with the hope of identifying stocks in the universe that simultaneously exhibit qualities of all three styles.
Increased Tax Efficiency
The Fund employs a variety of techniques designed to reduce the impact of taxes on investors' returns, seeking to maximize after-tax returns.
  Portfolio Characteristics

Sector Exposures

As of September 30, 2019

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Fund Benchmark Fund - Index
Communication Services 11.66% 11.57% 0.09%
Consumer Discretionary 13.20% 13.05% 0.14%
Consumer Staples 7.07% 6.90% 0.17%
Energy 6.52% 7.67% -1.15%
Financials 21.81% 24.69% -2.88%
Health Care 0.88% 2.60% -1.72%
Industrials 8.34% 5.40% 2.94%
Information Technology 15.95% 15.09% 0.87%
Materials 9.37% 7.34% 2.03%
Real Estate 2.46% 2.86% -0.40%
Utilities 2.74% 2.82% -0.08%
Total 100.00% 100.00% 0.00%

Top 10 Holdings

As of September 30, 2019

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% of Net Assets
Tencent Holdings 5.06%
Alibaba 4.47%
Samsung Elec 4.37%
TSMC 3.89%
China Mobile 1.89%
SK Hynix 1.80%
JBS 1.58%
Conch Cement 1.43%
TCS 1.38%
LG Elec 1.30%
Total 27.17%

Portfolio Statistics

As of September 30, 2019

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# of stocks 328
Price Momentum 0.17
EPS Growth (5 Year) 12.90
P/B 1.49
P/E (trailing 12 months) 11.43
Median Market Cap ($MM) 9,829
Average Market Cap ($MM) 85,034
  Performance

Annualized Total Returns

As of November 30, 2019

MTD YTD 1YR 3YR Since Inception 2/11/2015 Gross Expense Ratio Net Expense Ratio*
AQR TM Emerging Multi-Style Fund 0.20% 6.46% 2.56% 6.82% 1.53% 0.85% 0.75%
- Fund's return after taxes on distributions 2.20% 3.28% -5.99% 3.44% 1.25%
- Fund's return after taxes on distributions and share liquidation 1.30% 1.94% -2.82% 3.05% 1.21%
MSCI Emerging -0.14% 10.21% 7.28% 9.01% 4.14%
AQR TM Emerging Multi-Style Fund MSCI Emerging
QTD 0.2 % -0.14 %
YTD 6.46 % 10.21 %
1YR 2.56 % 7.28 %
3YR 6.82 % 9.01 %
Since Inception 2/11/2015 1.53 % 4.14 %
Gross Expense Ratio 0.85%
Net Expense Ratio* 0.75%

As of September 30, 2019

QTD YTD 1YR 3YR Since Inception 2/11/2015 Gross Expense Ratio Net Expense Ratio*
AQR TM Emerging Multi-Style Fund -5.06% 3.28% -5.68% 3.85% 0.93% 0.85% 0.75%
- Fund's return after taxes on distributions -5.06% 3.28% -5.99% 3.44% 0.64%
- Fund's return after taxes on distributions and share liquidation -3.00% 1.94% -2.82% 3.05% 0.76%
MSCI Emerging -4.25% 5.90% -2.02% 5.97% 3.40%
AQR TM Emerging Multi-Style Fund MSCI Emerging
QTD -5.06 % -4.25 %
YTD 3.28 % 5.90 %
1YR -5.68 % -2.02 %
3YR 3.85 % 5.97 %
Since Inception 2/11/2015 0.93 % 3.40 %
Gross Expense Ratio 0.85%
Net Expense Ratio* 0.75%
  Managers

Cliff Asness

Managing & Founding Principal

  • 27 years of experience
  • 21 years at AQR

Ph.D., M.B.A., University of Chicago

B.S., B.S., University of Pennyslvania

Andrea Frazzini

Principal

  • 14 years of experience
  • 11 years at AQR

Ph.D., Yale University

M.S., London School of Economics

B.S., University of Rome III

Jacques A. Friedman

Principal

  • 23 years of experience
  • 21 years at AQR

M.S., University of Washington

B.S., Brown University

Ronen Israel

Principal

  • 23 years of experience
  • 20 years at AQR

M.A., Columbia University

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

  Fees & Minimums

Investment Minimums

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Individual Investors $5 Million
Institutional Investors None
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 0.60%
Distribution (12b-1) Fee None
Other Expenses  
     Dividends On Short Sales None
     All Other Expenses 0.25%
Acquired Fund Fees 0.00%
Gross Expenses 0.85%
Less: Fee Waivers and/or Expense Reimbursements 0.10%
Net Expenses* 0.75%

An investment in any of the AQR Funds involves risk, including loss of principal. The value of the Funds’ 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. Please refer to the prospectus for complete information regarding all risks associated with the Funds. An investor considering the Funds should be able to tolerate potentially wide price fluctuations. The Funds are subject to high portfolio turnover risk as a result of frequent trading, and thus, will incur a higher level of brokerage fees and commissions, and cause a higher level of tax liability to shareholders in the Funds. The Funds may attempt to increase its income or total return through the use of securities lending, and they may be subject to the possibility of additional loss as a result of this investment technique.

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:
Past performance is no guarantee of future results. An investment in the Funds involves risk, including loss of principal.
The Fund is not suitable for all investors.

Emerging markets are riskier than more developed markets because they tend to develop unevenly and may never fully develop.
Funds that emphasize investments in small and mid-cap companies generally will experience greater price volatility. Commodities
and futures generally are volatile and involve a high degree of risk. The Adviser from time to time employs various hedging
techniques, it is not possible to hedge fully or perfectly against any risk, and hedging entails its own costs.

An investor considering the funds should be able to tolerate potentially wide price fluctuations. The Fund is subject to high portfolio turnover risk as a result of frequent trading, and thus, will incur a higher level of brokerage fees and commissions, and cause a higher level of tax liability to shareholders in the Fund. Since the Fund may also attempt to increase its income or total return through the use of securities lending, it may be subject to the possibility of additional loss as a result of this investment technique.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus containing this and other important information, please call 1-866-290-2688 or click here to view or download a prospectus online. Read the prospectus carefully before you invest.

 

 

Performance data quoted represent past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. All returns shown are total returns that assume reinvestment of dividends and capital gains. Returns for periods under a year are cumulative, all others are average annual returns. Investment returns and principal will fluctuate with market and economic conditions and you may have a gain or loss when you sell shares. From time to time the Fund’s advisor may waive fees or reimbursed expenses, without which performance would have been lower. Please call 866-290-2688 for most recent month-end performance.

Performance shown prior to a share class’s inception date reflects the historical performance of the Fund’s Class I shares, calculated using the fees and expenses of the Class N or Class R6 shares, respectively.

© 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. 

Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus containing this and other important information, please call 1-866-290-2688 or click here to view or download a prospectus online. Read the prospectus carefully before you invest. 

View definitions of benchmarks and other terms used here.

Diversification does not eliminate risk. Indexes are unmanaged and one cannot invest directly in an index.

The Adviser has contractually agreed to reimburse operating expenses of the Funds at least through January 28, 2020 for, Large Cap Defensive Style Fund, International Defensive Style Fund, Emerging Defensive Style Fund, Large Cap Momentum Style Fund, Small Cap Momentum Style Fund, International Momentum Style Fund, TM Large Cap Momentum Style Fund, TM Small Cap Momentum Style Fund, TM International Momentum Style Fund, Large Cap Multi-Style Fund, Small Cap Multi-Style Fund, International Multi-Style Fund, Emerging Multi-Style Fund, TM Large Cap Multi-Style Fund, TM Small Cap Multi-Style Fund, TM International Multi-Style Fund, TM Emerging Multi-Style Fund, Large Cap Relaxed Constraint Equity Fund, International Relaxed Constraint Equity Fund, Emerging Relaxed Constraint Equity Fund, Global Equity Fund, International Equity Fund, Core Plus Bond Fund and April 30, 2020 for Diversified Arbitrage Fund, Equity Market Neutral Fund, Global Macro Fund,  Long/Short Equity Fund, Managed Futures Strategy Fund, Managed Futures Strategy HV Fund, Multi-Strategy Alternative Fund, Risk-Balanced Commodities Strategy Fund, Style Premia Alternative Fund, Style Premia Alternative LV Fund, Volatility Risk, Premium Fund, Multi-Asset Fund, Risk Parity II HV Fund, Risk Parity II MV Fund. For additional details on annual fund operating expenses for each Fund, please see the underlying Funds’ prospectus.

The information provided herein (including any separate documents that may be accessed through this website) is not directed at any investor or category of investors and is provided solely as general information about our products and services and to otherwise provide general investment education. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of AQR Capital Management, LLC (“AQR Capital”) nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement investor, contact your financial advisor or other fiduciary unrelated to AQR about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances.

There are risks involved with investing including the possible loss of principal.
Past performance does not guarantee future results.
©2019 AQR Funds. All rights reserved.