AQR Risk-Balanced Commodities Strategy Fund Class N (ARCNX)

Overview

The fund is an investment vehicle focusing on a broad spectrum of commodity sectors, including but not limited to agricultural, energy, livestock, soft commodities, precious and base metals, and even carbon pricing. It aims to achieve its investment goals by diversifying assets across these varied sectors, encompassing both standard commodities found in major indices and alternative commodities less common in such indices. To gain exposure to these commodities, the fund engages in derivative transactions and invests in a special subsidiary designed for this purpose. Notably, it operates with a non-diversified status, concentrating its investments rather than spreading them out across many assets.

Products and Services

The fund offers investment opportunities in various commodity-linked products and services, including:

• Commodity Sectors Allocation:

  Investing across multiple commodity sectors such as agricultural products, energy, livestock, and metals (both precious and base), the fund aims to provide investors with a diversified exposure to the commodities market. This also includes investments in 'softs', like coffee, sugar, and cocoa, as well as emerging carbon pricing markets, reflecting a broad approach to commodity investment.

• Alternative Commodities Investment:

  Distinguishing itself from other funds, this investment fund also targets alternative commodities not commonly found in large, widely recognized commodity indices. This allows investors to explore potentially undervalued or niche markets with growth potential, expanding beyond traditional commodity investments.

• Commodity-Linked Derivatives:

  To achieve exposure to its targeted commodity sectors, the fund invests in commodity-linked derivatives. These financial instruments derive their value from the price movements of underlying commodities, providing a way to invest in commodities without the necessity of physically holding them. This approach can offer leverage, hedging opportunities, and access to a broader array of commodities.

• Investments through a Subsidiary:

  In its strategy to gain exposure to various commodities, the fund leverages an investment in a subsidiary. This method allows the fund to potentially bypass certain investment restrictions and leverage its resources more efficiently, enabling a broader or more focused investment approach depending on market conditions and fund objectives.