AQR International Defensive Style Fund

ANDRX
  • daily nav $14.51
  • change $-0.04
  • daily return -0.28%
  • inception date 9/2/2014
  • AUM $241MM

As of July 19, 2024

  About the Fund

Investment Objective

The Fund seeks total return.

A Lower Risk Equity Solution

The AQR International Defensive Style Fund pursues a defensive strategy that seeks to provide exposure to international markets with lower risk through active stock selection, risk management and diversification.

 

Investment Approach

Many investors have become more focused on downside protection. Defensive Equity strategies seek to address this concern for stock market investors by focusing on stocks that have been more stable and less volatile, seeking to provide market-like returns with lower risk.

The investment universe for the Fund is comprised of International equities, including large-cap and mid-cap companies included in the MSCI World ex USA (Net) Index. 

The Fund seeks to invest in stocks that exhibit low statistical risk (low volatility and low market beta 1 1 Close Beta is a measure of a stock’s sensitivity to movements of the overall stock market. ) and exhibit high-quality characteristics, such as stable earnings and high profit margins. These stocks generally are less volatile than the market average, and have the potential to produce higher risk-adjusted returns over a full market cycle than capitalization-weighted market indices.

 

Why Invest in the AQR International Defensive Style Fund?

Seeks market-like returns with lower risk
Low-risk stocks have performed similarly to riskier stocks over the long term, suggesting that investors have not had to sacrifice significant returns when reducing risk in their portfolio. (Source: Frazzini, Andrea and Pedersen, Lasse Heje, 2014. “Betting Against Beta.” Journal of Financial Economics 111, 1-25.) The International Defensive Style Fund aims to deliver returns similar to its benchmark but with lower volatility.
Seeks to outperform during down markets
The Fund can provide investors with an attractive risk profile when they may need it most: during market downturns. In this market condition, Defensive Equity is likely to experience negative returns, but tends to fare better than the broader market.
Exposure to high quality companies
The Fund commonly targets stocks of companies that have demonstrated strong fiscal health, exhibiting characteristics such as stable earnings, high profitability and low operating and financial leverage. Many of these stocks have exhibited less volatility than their equity market counterparts and have the potential to produce higher risk-adjusted returns over a full market cycle than broader market indices.
  Portfolio Characteristics

Sector Exposures

As of June 30, 2024

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Fund Benchmark Fund - Index
Communication Services 10.58% 3.80% 6.78%
Consumer Discretionary 3.19% 10.65% -7.46%
Consumer Staples 23.63% 8.09% 15.54%
Energy 5.05% 5.67% -0.62%
Financials 11.42% 21.58% -10.16%
Health Care 11.56% 12.07% -0.50%
Industrials 9.35% 16.48% -7.13%
Information Technology 15.51% 9.49% 6.02%
Materials 4.92% 7.18% -2.25%
Real Estate 2.00% 1.88% 0.12%
Utilities 2.79% 3.12% -0.33%
Total 100.00% 100.00% 0.00%

Top 10 Holdings

As of June 30, 2024

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% of Net Assets
Loblaw 1.64%
Novo Nordisk 1.61%
SAP SE 1.61%
OCBC 1.52%
Japan Tobacco 1.47%
Telstra Group 1.47%
Beiersdorf 1.43%
Novartis 1.42%
Henkel AG 1.40%
L'Oreal 1.39%
Total 14.96%

Portfolio Statistics

As of June 30, 2024

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# of stocks 243
EPS Growth (5 Year) 7.24
P/B 2.26
P/E (trailing 12 months) 20.09
Debt/Equity 0.54
Median Market Cap ($MM) 23,491
Average Market Cap ($MM) 71,702
Predicted Beta 0.75

All Fund Statistics are subject to change. Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell securities. Please see disclosure section for a glossary of industry terms.

AQR International Defensive Style Fund: Foreign investing involves special risks such as currency fluctuations and political uncertainty. 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.

  Performance

Annualized Total Returns

As of June 28, 2024

MTD YTD 1YR 3YR 5YR Since Inception 9/2/2014 Gross Expense Ratio Net Expense Ratio*
AQR International Defensive Style Fund -1.53% 1.73% 5.44% -0.05% 4.09% 3.54% 0.54% 0.46%
MSCI World Ex United States Net Index USD End of Day -1.66% 4.96% 11.22% 2.82% 6.55% -
AQR International Defensive Style Fund MSCI World Ex United States Net Index USD End of Day
MTD -1.53% -1.66%
YTD 1.73% 4.96%
1YR 5.44% 11.22%
3YR -0.05% 2.82%
5YR 4.09% 6.55%
Since Inception 9/2/2014 3.54% 6.92%
Gross Expense Ratio 0.54%
Net Expense Ratio* 0.46%

As of June 28, 2024

QTD YTD 1YR 3YR 5YR Since Inception 9/2/2014 Gross Expense Ratio Net Expense Ratio*
AQR International Defensive Style Fund -0.28% 1.73% 5.44% -0.05% 4.09% 3.54% 0.54% 0.46%
MSCI World Ex United States Net Index USD End of Day -0.51% 4.96% 11.22% 2.82% 6.55% -
AQR International Defensive Style Fund MSCI World Ex United States Net Index USD End of Day
QTD -0.28% -0.51%
YTD 1.73% 4.96%
1YR 5.44% 11.22%
3YR -0.05% 2.82%
5YR 4.09% 6.55%
Since Inception 9/2/2014 3.54% 6.92%
Gross Expense Ratio 0.54%
Net Expense Ratio* 0.46%

The Adviser has contractually agreed to reimburse operating expenses of the Fund at least through April 30, 2025. The Expense Limitation Agreement may be terminated with the consent of the Board of Trustees.

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.

The MSCI-World ex USA Index is market capitalization weighted index designed to provide a broad measure of stock performance throughout the world, with the exception of U.S.- based companies. 

AQR International Defensive Style Fund: Foreign investing involves special risks such as currency fluctuations and political uncertainty. 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.

  Managers

Cliff Asness

Managing & Founding Principal

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

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

Michele L. Aghassi

Principal

Ph.D., Massachusetts Institute of Technology

B.S., Brown University

Andrea Frazzini

Principal

Ph.D., Yale University

M.S., London School of Economics

B.S., University of Rome III

John J. Huss

Principal

S.B., Massachusetts Institute of Technology

Laura Serban

A.B., M.S., Ph.D., Harvard University

  Fees & Minimums

Investment Minimums

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Individual Investors Not Available
Institutional Investors $100,000
Accounts Offered by Financial Advisors $50 million or $100 million aggregate investment across all series of the Trust

Reductions apply to certain eligibility groups. See “Investing With the AQR Funds” in the Fund’s prospectus.

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 0.40%
Distribution (12b-1) Fee None
Other Expenses  
     Dividends On Short Sales and/or Interest Expense 0.01%
     All Other Expenses 0.13%
Acquired Fund Fees None
Gross Expenses 0.54%
Less: Expense Reimbursements 0.08%
Net Expenses* 0.46%

*As stated in the prospectus, the Adviser has contractually agreed to reimburse operating expenses of the Fund in an amount sufficient to limit certain Specified Expenses in the table above at no more than 0.05% for Class R6 Shares at least through January 28, 2025. "Specified Expenses" for this purpose include all Fund operating expenses other than management fees and 12b-1 fees and exclude interest, taxes, dividends on short sales, borrowing costs, acquired fund fees and expenses, interest expense relating to short sales, expenses related to class action claims, contingent expenses related to tax reclaim receipts, reorganization expenses and extraordinary expenses. The Expense Limitation Agreement may be terminated with the consent of the Board of Trustees.

AQR International Defensive Style Fund: Foreign investing involves special risks such as currency fluctuations and political uncertainty. 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.

Fund Adjusted Expense Ratio
Adjusted Expense Ratio** 0.45%

**Reflects the Net Expense Ratio adjusted for certain investment related expenses, such as interest expense from borrowing and repurchase agreements and dividend expenses from investments on short sales, incurred directly by the Fund, none of which are paid to the Advisor.

  Documents

Fund Literature

Fund Reporting

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.
Foreign and Emerging Market investing involves special risks such as currency fluctuations and political uncertainty. Funds that emphasize investments in small and mid-cap companies generally will experience greater price volatility. 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.

Foreign investing involves special risks such as currency fluctuations and political uncertainty. Funds that emphasize investments in small and mid-cap companies generally will experience greater price volatility. 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 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.

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.

 

 

© 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 investingTo obtain a prospectus or summary 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.

Prior to October 18, 2021 the AQR Macro Opportunities Fund was known as the AQR Global Macro Fund.

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.
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