AQR Styles Model Portfolios

 

 



Investment Solutions Rooted in AQR Research

AQR Styles Model Portfolios seek to leverage AQR’s research and investment capabilities to create all-in-one solutions for clients. The Portfolios are constructed and managed by AQR’s Multi-Strategy team, which creates custom solutions for sophisticated investors around the globe.

 

These Models seek to maximize returns at a targeted level of risk and are designed to provide: 

A Diversified Portfolio 
The Portfolios offer a strategic allocation that is diversified across geographies and asset classes, which may include equities, fixed income, alternatives, and commodities.

Exposure to Liquid Alternatives
A  targeted allocation to independent sources of return can help reduce the Portfolios’ sensitivity to stock and bond market movements.

A Styles-Based Approach
The underlying funds employ a systematic approach to security selection and asset allocation, using investment styles such as value, momentum and quality.

 

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Capital Allocations

Each of the five Styles Model Portfolios combines select AQR mutual funds.
They aim to provide broad exposure across asset classes, geographies and investment styles. 

Style model Table of Funds
Source: AQR. Actual capital allocations experienced by an investor may be substantially different from those presented above. Allocations may not sum to 100% due to rounding. Cash is represented by ICE Bank of America Merrill Lynch 3 Month T-Bill Index. Capital allocations are illustrative and can vary depending on the assumptions. These model portfolios seek to maximize returns subject to the volatility of the portfolio being lower than a specified sample investor portfolio. AQR Styles Model Portfolios are subject to change at any time and assume quarterly rebalancing. 

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Large Cap Multi-Style Fund
(QCELX), Small Cap Multi-Style Fund (QSMLX), International Multi-Style Fund (QICLX), Emerging Multi-Style Fund (QEELX): Seek to invest in stocks of attractively valued companies that have positive momentum and strong profitability.

Core Plus Bond Fund (QCPIX): Seeks to generate returns through issue selection, curve positioning and currency selection with minimal active duration or spread “bets.”

Risk-Balanced Commodities Strategy Fund (ARCIX): Seeks to invest long or short individual commodity contracts, while always maintaining a net long position in commodities as a whole.

Alternative Risk Premia Fund (QRPIX): Seeks to invest long and short across stocks and industries, equity indices, fixed income, and currencies to capture asset allocation and security selection views.


FOR INVESTMENT PROFESSIONAL USE ONLY.


The AQR Styles Model 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. 

Diversification does not eliminate the risk of experiencing investment losses. There can be no assurance a fund’s investment objective or strategies will be successful. Investing involves risk, including risk of loss. 

The set of model portfolios produced seeks to maximize expected returns subject to the volatility of the model portfolio being lower than a specified sample investor portfolio. Each underlying mutual fund in the AQR Styles 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 Styles 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 Styles Model Portfolios can lead to additional advisory fees paid to AQR. 

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 Styles Model Portfolios and other fund families may have other options available, including funds with different features and costs. 

We can change or update the AQR Styles 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 Styles 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 portfolios 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. 

Investment Objectives of Underlying Funds: The Large Cap Multi-Style Fund, Small Cap Multi-Style Fund, International Multi-Style Fund and Emerging Multi-Style Fund seek long-term capital appreciation. The Core Plus Bond Fund seeks total return, consisting of capital appreciation and income. The Alternative Risk Premia Fund seeks positive absolute returns. The Risk-Balanced Commodities Strategy Fund seeks to generate positive long-term absolute returns. The Portfolios are not suitable for all investors. The underlying funds may attempt to increase their 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. 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. One cannot invest directly in an index. 

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 is the Investment Manager of the Funds and a federally registered investment adviser. ALPS Distributors is not affiliated with AQR Capital Management.