Investment Objective

Seeks long-term capital appreciation

General Nature of Fund

Seeks to outperform the MSCI EAFE Index while controlling its tracking error relative to this benchmark

Fund Benchmark

MSCI EAFE Total Return Index with Net Dividends Unhedged in U.S. Dollars

Investment Approach

Develop a ranking for each stock in the investable universe using a disciplined, systematic approach to analyze a wide variety
of factors based on the underlying philosophy of value and momentum.

Develop an independent view of the attractiveness of countries and currencies as an overlay to the selection of individual stocks.

Combine these rankings into a portfolio that takes into account trading costs and liquidity considerations. Rebalance the portfolio
in a manner that seeks to create a balance between keeping the portfolio in line with the ideal desired portfolio and the need to
minimize trading costs.

Execute trades primarily in a highly automated and liquidity-providing manner to seek to reduce the total cost of trading.

 
IEF
Monthly Review
February 2010		  
IEF Portfolio Commentary
Q4 2009
N & I Fact Sheet
December 2009

The MSCI EAFE Index is a market capitalization weighted index composed of companies representative of the market structure of 21 developed market countries in Europe, Australasia and the Far East. You cannot invest directly in an index.

International Equity Fund. The Fund uses derivatives to manage its country and currency exposures. The use of derivatives 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. Foreign investing involves special risks such as currency fluctuations and political uncertainty.


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. 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.