AQR is a global investment management rm dedicated to delivering results for our clients. As a pioneer in quantitative investing, we believe that a disciplined and systematic approach is the best way to achieve long-term value. Over 20 years, we have applied our emphasis on research and precision to every aspect of our investment process from design to implementation.
Our model portfolios leverage this expertise to provide clients with diversied investment solutions comprised of AQR mutual funds. These models are constructed and managed by AQR’s experienced Multi-Strategy team which creates custom solutions for some of the most sophisticated investors around the globe.
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AQR Styles Model Portfolios seek to provide all-in-one solutions for investors based on a targeted level of risk. Each of the ve Portfolios thoughtfully combines AQR mutual funds, aiming to provide broad exposure across asset classes, geographies, and investment styles.
The AQR Diversifying Strategies Model Portfolio is designed to complement an investor’s traditional stock and bond portfolio. The Portfolio provides exposure to six distinct alternatives strategies through a strategic allocation to AQR mutual funds.
FOR INVESTMENT PROFESSIONAL USE ONLY.
The AQR Styles Model Portfolios and the AQR Diversifying Strategies Model Portfolio (together, the “AQR Model Portfolios” or “the Portfolios”) are theoretical portfolios and do not represent any specific account, pooled investment vehicle or investable securities managed by AQR. This presentation is intended for informational purposes only, and does not constitute investment advice or an investment recommendation by AQR. AQR is not responsible for determining securities to be purchased, held and/or determining the suitability of the AQR Model Portfolios as an investment or investment strategy. In no event shall AQR be deemed to be a fiduciary under ERISA or other applicable laws or regulations.
The Styles Model Portfolios seek to maximize expected returns subject to the volatility of each model portfolio being lower than a specified sample investor portfolio. The Diversifying Strategies Model Portfolio seeks to maximize expected returns with moderate to low exposures to traditional equity and fixed income asset classes. Each underlying mutual fund in the AQR Model Portfolios is a separate series of the AQR Funds, a registered open-end management investment company. When selecting mutual funds for the AQR Model Portfolios, the AQR Multi-Strategy Team limits its selection to AQR mutual funds. As a result, the AQR Model Portfolios’ Multi-Strategy Team 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 AQR Model Portfolios’ target asset classes, asset allocation objectives or ongoing allocations, because it will allocate only to asset classes where AQR mutual funds are available. AQR is the investment adviser to the AQR mutual funds included in the AQR Model Portfolios, 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 through the AQR Model Portfolios can lead to additional advisory fees paid to AQR. An actual investment in accordance with the Portfolio’s model strategy may be subject to different platform-specific rebalancing schedules.
AQR is not responsible for determining securities to be purchased, held and/or sold in your clients’ accounts or for determining the suitability of the AQR Model Portfolios as an investment or investment strategy for any client of yours on whose behalf you use this information. AQR does not have investment discretion and does not place trade orders for any of your clients’ accounts. The Portfolios are not suitable for all investors. The performance results for investors following the Portfolio could differ based on differences in treatment of dividends received, including the amount received and whether and when such dividends were reinvested. There are expenses associated with the underlying funds in addition to any fees charged by an intermediary. Additionally, an intermediary may make cash allocations, which are not reflected here. For these and other reasons, investors following the Portfolio are subject to differing returns, including potentially lower returns.
Diversification and asset allocation do not ensure a profit or guarantee against a loss. There can be no assurance a fund’s investment objective or strategies will be successful. Investing involves risk, including risk of loss. 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 mutual funds for the AQR Model Portfolios and other fund families may have other options available, including funds with different features and costs.
Portfolio weights for the Styles Model Portfolios were determined such that they seek to maximize expected returns relative to fixed income and equity indices while exposing the investor to similar levels of risk. The equity and fixed income mutual funds included in the portfolio provide exposure to bond and developed and emerging equity markets. They are part of AQR Funds’ suite of style mutual funds that seek to harvest well-established risk premia. The commodities and alternative risk premia mutual funds were selected for their potential ability to provide uncorrelated sources of return.
Portfolio weights for the Diversifying Strategies Model Portfolio were determined such that they seek to maximize expected returns with moderate to low exposures to traditional equity and fixed income asset classes. The Multi-Asset Mutual Fund was selected to provide some exposure to traditional asset classes. The Style Premia Alternative, Managed Futures High Volatility and Volatility Risk Premium Mutual Funds seek to harvest well established risk premia that tend to be uncorrelated to the market. The Equity Market Neutral, Global Macro and Diversified Arbitrage Mutual Funds provide exposure to harder to access, more proprietary sources of return, which are also uncorrelated to traditional asset classes.
The AQR Model Portfolios have no assets and do not involve actual purchases or sales. Model returns have many inherent limitations and may not reflect the impact that material economic and market factors may have had on the decision-making process if client funds were actually managed in the manner shown. There can be no assurance that the Portfolios will achieve profits or avoid incurring substantial losses.
We can change or update the AQR Model Portfolios at any time. Neither AQR nor ALPS will notify you when they are updated. The model portfolios do 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 AQR Model Portfolios do 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.
Investments in the Portfolios are 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 underlying 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.
An investor should consider the investment objectives, risks, charges and expenses of the underlying funds 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 objective(s) will be met.
© AQR Funds are distributed by ALPS Distributors, Inc. AQR Capital Management, LLC (“AQR”) is the Investment Manager of the AQR Funds and a federally registered investment adviser. ALPS Distributors is not affiliated with AQR Capital Management.