AQR Funds - Our Funds - Family of Funds Overview

Family of Funds Overview

Absolute Return Funds
Fund	Investment Objective	General Nature of Fund	Fund Benchmark	Share Classes	Ticker
Diversified Arbitrage Fund	Seeks long-term absolute (positive) returns	Invests using “alternative investment” strategies such as merger arbitrage, convertible arbitrage, and other forms of arbitrage	Merrill Lynch 3 Month Treasury Bill Index	Class N Class I	ADANX ADAIX
Managed Futures Strategy Fund	Seeks long-term absolute (positive) returns	Invests long and short in a portfolio of futures contracts and futures-related instruments, across four major asset classes: commodities, currencies, fixed income and equities	Merrill Lynch 3 Month Treasury Bill Index	Class N Class I	AQMNX AQMIX
International and Global Equity Funds
Fund	Investment Objective	General Nature of Fund	Fund Benchmark	Share Classes	Ticker
International Equity Fund	Seeks long-term capital appreciation	Invests worldwide in developed markets excluding the U.S. and Canada	MSCI EAFE Index	Class N Class I Class Y	AQINX AQIIX AQIYX
Global Equity Fund	Seeks long-term capital appreciation	Invests worldwide in developed markets including the U.S. and Canada	MSCI World Index	Class N Class I Class Y	AQGNX AQGIX AQGYX
Momentum Funds
Fund	Investment Objective	General Nature of Fund	Fund Benchmark	Share Classes	Ticker
International Momentum Fund	Seeks long-term capital appreciation	Invests in non-U.S. companies with positive momentum	MSCI World ex-USA Growth Index	Class L	AIMOX
Momentum Fund	Seeks long-term capital appreciation	Invests in large and mid-cap U.S. companies with positive momentum	Russell 1000 Growth Index	Class L	AMOMX
Small Cap Momentum Fund	Seeks long-term capital appreciation	Invests in small-cap U.S. companies with positive momentum	Russell 2000 Growth Index	Class L	ASMOX

The Merrill Lynch 3 Month Treasury Bill Index is designed to measure the performance of high-quality short-term cash-equivalent investments.

The MSCI World ex-USA Growth Index is a market capitalization weighted index composed of companies with higher price-to-book ratios representative of the market structure of 22 developed market countries in North America, Europe and the Asia/Pacific Region, excluding the U.S.A.

The Russell 1000 Growth Index measures the performance of those Russell 1000 companies that have higher price-to-book ratios and higher forecasted growth rates.

The Russell 2000 Growth Index measures the performance of those Russell 2000 companies that have higher price-to-book ratios and higher forecasted growth rates.

Indexes are unmanaged and one cannot invest directly in an index.

All AQR Funds. 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. The use of derivatives exposes the Funds to additional risks including increased volatility, lack of liquidity, and possible losses greater than the Fund's initial investment as well as increased transaction costs. Please refer to the prospectus for complete information regarding all risks associated with the Funds.

Diversified Arbitrage Fund. This Fund has the risk that the anticipated arbitrage opportunities do not play out as planned, resulting in potentially reduced returns or losses to the Fund as it unwinds its trades. This Fund enters into a short sale by selling a security it has borrowed. If the market price of a security increases after the Fund borrows the security, the Fund will suffer a potentially unlimited loss when it replaces the borrowed security at the higher price. Short sales also involve transaction and other costs that will reduce potential Fund gains and increase potential Fund losses.

Momentum Funds. An investor considering the Funds should be able to tolerate potentially wide price fluctuations. Securities with positive momentum generally will be more volatile than a broad cross-section of securities. In addition, there may be periods when the momentum style is out of favor, and during which the investment performance of a Fund using a momentum strategy generally will suffer. 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, they may be subject to the possibility of additional loss as a result of this investment technique.

Small Cap Momentum Fund. Funds that emphasize investments in smaller companies generally will experience greater price volatility.

International Momentum Fund. Foreign investing involves special risks such as currency fluctuations and political uncertainty.

Managed Futures Fund: The use of derivatives, forward and futures contracts, and commodities exposes the Fund to additional risks including increased volatility, lack of liquidity, and possible losses greater than the Fund's initial investment as well as increased transaction costs. Concentration generally will lead to greater price volatility. This Fund enters into a short sale by selling a security it has borrowed. If the market price of a security increases after the Fund borrows the security, the Fund will suffer a potentially unlimited loss when it replaces the borrowed security at the higher price. Short sales also involve transaction and other costs that will reduce potential Fund gains and increase potential Fund losses.