As filed with the Securities and Exchange Commission on March 28, 2013
Securities Act File (No. 333-153445)
Investment Company Act File (No. 811-22235)
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933 |
x |
Pre-Effective Amendment No. |
¨ |
Post-Effective Amendment No. 46 |
x |
and/or
REGISTRATION STATEMENT |
UNDER |
THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 48 |
x |
(Check appropriate box or boxes) |
x |
AQR Funds
(Exact Name of Registrant Specified in Charter)
Two Greenwich Plaza, 3rd Floor
Greenwich, CT 06830
(Address of Principal Executive Offices)
Registrants Telephone Number, Including Area Code: (203) 742-3600
Bradley D. Asness, Esq.
Principal & Chief Legal Officer
AQR Capital Management, LLC
Two Greenwich Plaza, 3rd Floor
Greenwich, CT 06830
(Name and Address of Agent for Service)
With copies to:
Rose F. DiMartino, Esq.
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, NY 10019
It is proposed that this filing will become effective (check appropriate box)
x | immediately upon filing pursuant to paragraph (b) |
¨ | on (date) pursuant to paragraph (b) |
¨ | 60 days after filing pursuant to paragraph (a)(1) |
¨ | on (date) pursuant to paragraph (a)(1) |
¨ | 75 days after filing pursuant to paragraph (a)(2) |
¨ | on (date) pursuant to paragraph (a)(2) of rule 485. |
If appropriate, check the following box:
¨ | This post-effective amendment designates a new effective date for a previously filed post-effective amendment. |
Title of Securities Being Registered: Shares of Beneficial Interest, par value, $0.001 per share.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended, the Registrant certifies that it meets all of the requirements for effectiveness of this Registration Statement under Rule 485(b) of the Securities Act and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Greenwich, Connecticut, on the 28th day of March, 2013.
AQR Funds | ||||
By: | /s/ Marco Hanig | |||
Marco Hanig President |
Pursuant to the requirements of the Securities Act of 1933, the Registration Statement has been signed below by the following persons in the capacities and on the dates indicated.
Signature | Title | Date | ||||
/s/ Marco Hanig |
Marco Hanig President (Principal Executive Officer) |
March 28, 2013 | ||||
(Marco Hanig) | ||||||
/s/ Nir Messafi |
Nir Messafi Chief Financial Officer (Principal Financial Officer) |
March 28, 2013 | ||||
(Nir Messafi) | ||||||
* |
David Kabiller Trustee |
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(David Kabiller) | ||||||
* |
Timothy K. Armour Trustee |
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(Timothy K. Armour) | ||||||
* |
William L. Atwell Trustee |
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(William L. Atwell) | ||||||
* |
Gregg D. Behrens Trustee |
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(Gregg D. Behrens) | ||||||
* |
Brian Posner Trustee |
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(Brian Posner) | ||||||
* |
L. Joe Moravy Trustee |
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(L. Joe Moravy) | ||||||
*By: |
/S/ MARCO HANIG |
March 28, 2013 | ||||
Marco Hanig | ||||||
Attorney-in-fact for each Trustee |
EXHIBIT INDEX
Item Number |
Item | |
Exhibit | ||
EX-101.INS | XBRL Instance Document | |
EX-101.SCH | XBRL Taxonomy Extension Schema Document | |
EX-101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |
EX-101.DEF | XBRL Taxonomy Extension Definition Linkbase | |
EX-101.LAB | XBRL Taxonomy Extension Labels Linkbase | |
EX-101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
Label | Element | Value | ||||
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Risk/Return: | rr_RiskReturnAbstract | |||||
Registrant Name | dei_EntityRegistrantName | AQR Funds | ||||
Prospectus Date | rr_ProspectusDate | Mar. 13, 2013 | ||||
AQR Small Cap Core Equity Fund
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Risk/Return: | rr_RiskReturnAbstract | |||||
Risk/Return [Heading] | rr_RiskReturnHeading | Fund Summary : AQR Small Cap Core Equity Fund | ||||
Objective [Heading] | rr_ObjectiveHeading | Investment Objective | ||||
Objective, Primary [Text Block] | rr_ObjectivePrimaryTextBlock | The AQR Small Cap Core Equity Fund (the “Fund”) seeks long-term capital appreciation. | ||||
Expense [Heading] | rr_ExpenseHeading | Fees and Expenses of the Fund | ||||
Operating Expenses Caption [Text] | rr_OperatingExpensesCaption | Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||
Fee Waiver or Reimbursement over Assets, Date of Termination | rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination | April 30, 2015 | ||||
Portfolio Turnover [Heading] | rr_PortfolioTurnoverHeading | Portfolio Turnover: | ||||
Portfolio Turnover [Text Block] | rr_PortfolioTurnoverTextBlock | The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. The Fund has not commenced operations as of the date of this prospectus. | ||||
Other Expenses, New Fund, Based on Estimates [Text] | rr_OtherExpensesNewFundBasedOnEstimates | Other expenses are estimated for the current fiscal year because the Fund had not commenced operations as of the date of this prospectus. | ||||
Expense Example [Heading] | rr_ExpenseExampleHeading | Example: | ||||
Expense Example Narrative [Text Block] | rr_ExpenseExampleNarrativeTextBlock | This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same and takes into account the effect of the Fee Waiver Agreement through April 30, 2015, as discussed in Footnote No. 2 to the Fee Table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: | ||||
Strategy [Heading] | rr_StrategyHeading | Principal Investment Strategies of the Fund | ||||
Strategy Narrative [Text Block] | rr_StrategyNarrativeTextBlock | The Fund pursues its investment objective by investing, under normal market conditions, at least 80% of its net assets (including borrowings for investment purposes) in equity or equity-related securities (including, but not limited to, exchange-traded funds, equity index futures, equity index swaps and depositary receipts) of small cap companies. In managing the Fund, the Adviser seeks to invest in attractively valued companies with positive momentum and a stable business. Companies are considered to be good value investments if they appear cheap based on multiple fundamental measures, including price-to-book and price-to-earnings ratios relative to other securities in its relevant universe at the time of purchase. In assessing positive momentum, the Adviser favors securities with strong medium-term performance relative to other securities in its relevant universe at the time of purchase. Further, the Adviser favors stable companies in good business health, including those with strong profitability and stable earnings. The Adviser may add to or modify the economic factors employed in selecting securities. There is no guarantee that the Fund's objective will be met. The Fund generally invests in small cap U.S. companies and the Adviser generally considers small cap U.S. companies to be those companies with market capitalizations within the range of the Russell 2000® Index at the time of purchase. The Adviser determines the weight of each security in the portfolio using a combination of the float-adjusted market capitalization of the security and the Adviser's assessment of attractiveness of the security based on each factor described above. Float adjusted market capitalization is a method of calculating the market capitalization of a security under which only the shares of the security that are readily available for purchase on open markets (as opposed to the total shares of the security outstanding) are included in the calculation of the security's market capitalization. As a result, securities with less float (i.e., less liquidity) are underweighted comparative to securities with greater float (i.e., greater liquidity). The Adviser utilizes portfolio optimization techniques to determine the frequency of trading, taking into account the transaction costs associated with trading each equity instrument. The Fund invests primarily in common stocks. The Fund may also invest in or use financial futures contracts and other types of equity-linked derivative instruments such as equity swaps and equity index swaps, as well as exchange-traded-funds and similar pooled investment vehicles, for hedging purposes, to gain exposure to the equity market and to maintain liquidity to pay for redemptions. A portion of the Fund's assets may be held in cash or cash-equivalent investments, including, but not limited to short-term investment funds. The Fund is expected to have annual turnover of approximately 85% to 100% for its first fiscal year, although actual portfolio turnover during this period may be higher or lower and will be affected by market conditions during the period. This estimated annual portfolio turnover rate is based on the expected regular turnover resulting from the Fund's implementation of its investment strategy, and does not take into account turnover that may occur as a result of flows into and out of the Fund's portfolio. A higher portfolio turnover rate results in correspondingly greater brokerage commissions and other transactional expenses, which are borne by the Fund and may negatively affect the Fund's performance, and may have adverse tax consequences. The Fund is not a complete investment program and should be considered only as one part of an investment portfolio. The Fund is more appropriate for long-term investors who can bear the risk of short-term NAV fluctuations, which at times, may be significant and rapid. |
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Risk [Heading] | rr_RiskHeading | Principal Risks of Investing in the Fund | ||||
Risk Narrative [Text Block] | rr_RiskNarrativeTextBlock | Risk is inherent in all investing. The value of your investment in the Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. The following is a summary description of certain risks of investing in the Fund. Common Stock Risk: Common stocks are subject to greater fluctuations in market value than other asset classes as a result of such factors as a company's business performance, investor perceptions, stock market trends and general economic conditions. Counterparty Risk: The Fund may enter into various types of derivative contracts. Many of these derivative contracts will be privately negotiated in the over-the-counter market. These contracts also involve exposure to credit risk, since contract performance depends in part on the financial condition of the counterparty. If a privately negotiated over-the-counter contract calls for payments by the Fund, the Fund must be prepared to make such payments when due. In addition, if a counterparty's creditworthiness declines, the Fund may not receive payments owed under the contract, or such payments may be delayed under such circumstances and the value of agreements with such counterparty can be expected to decline, potentially resulting in losses by the Fund. Derivatives Risk: In general, a derivative contract typically involves leverage, i.e., it provides exposure to potential gain or loss from a change in the level of the market price of a security, currency or commodity (or a basket or index) in a notional amount that exceeds the amount of cash or assets required to establish or maintain the derivative contract. The use of derivative instruments also exposes the Fund to additional risks and transaction costs. These instruments come in many varieties and have a wide range of potential risks and rewards, and may include futures contracts, and swaps. A risk of the Fund's use of derivatives is that the fluctuations in their values may not correlate perfectly with the overall securities markets. High Portfolio Turnover Risk: To the extent that the Fund makes investments on a shorter-term basis, the Fund may as a result trade more frequently and incur higher levels of brokerage fees and commissions, and cause higher levels of current tax liability to shareholders in the Fund. Investment in Other Investment Companies Risk: As with other investments, investments in other investment companies, including exchange traded funds ("ETFs"), are subject to market and selection risk. In addition, if the Fund acquires shares of investment companies, shareholders bear both their proportionate share of expenses in the Fund (including management and advisory fees) and, indirectly, the expenses of the investment companies. The Fund may invest in money market mutual funds. An investment in a money market mutual fund is not insured or guaranteed by a Federal Deposit Insurance Corporation or any other government agency. Although such funds seek to preserve the value of the Fund's investment at $1.00 per share, it is possible to lose money by investing in a money market mutual fund. Manager Risk: If the Fund's portfolio managers make poor investment decisions, including a failure to identify quality companies, it will negatively affect the Fund's investment performance. Market Risk: Market risk is the risk that the markets on which the Fund's investments trade will increase or decrease in value. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. If there is a general decline in the securities and other markets, your investment in the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests. Model and Data Risk: Given the complexity of the investments and strategies of the Fund, the Adviser relies heavily on quantitative models (both proprietary models developed by the Adviser, and those supplied by third parties) and information and data supplied by third parties ("Models and Data"). Models and Data are used to construct sets of transactions and investments, to provide risk management insights, and to assist in hedging the Fund's investments. When Models and Data prove to be incorrect or incomplete, any decisions made in reliance thereon expose the Fund to potential risks. Similarly, any hedging based on faulty Models and Data may prove to be unsuccessful. Some of the models used by the Adviser for the Fund are predictive in nature. The use of predictive models has inherent risks. Because predictive models are usually constructed based on historical data supplied by third parties, the success of relying on such models may depend heavily on the accuracy and reliability of the supplied historical data. All models rely on correct market data inputs. If incorrect market data is entered into even a well-founded model, the resulting information will be incorrect. However, even if market data is input correctly, "model prices" will often differ substantially from market prices, especially for securities with complex characteristics, such as derivative securities. Momentum Style Risk: Investing in securities with positive momentum entails investing in securities that have had above-average recent returns. These securities may 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 may suffer. New Fund Risk: The Fund is newly-formed. Accordingly, investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategy, and may not employ a successful investment strategy, any of which could result in the Fund being liquidated at any time without shareholder approval and at a time that may not be favorable for all shareholders. Such a liquidation could have negative tax consequences for shareholders. Small Cap Securities Risk: The Fund will invest its assets in the stocks of companies with smaller market capitalizations. While the Adviser believes these investments may provide significant potential for appreciation, they involve higher risks in some respects than do investments in stocks of larger companies. For example, prices of such stocks are often more volatile than prices of large-capitalization stocks. In addition, due to thin trading in some such stocks, an investment in these stocks may be more illiquid (i.e., harder to sell) than that of larger capitalization stocks. Smaller capitalization companies also fail more often than larger companies and may have more limited management and financial resources than larger companies. Value Style Risk: Investing in "value" stocks presents the risk that the stocks may never reach what the Adviser believes are their full market values, either because the market fails to recognize what the Adviser considers to be the companies' true business values or because the Adviser misjudged those values. In addition, value stocks may fall out of favor with investors and underperform growth stocks during given periods. |
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Risk Lose Money [Text] | rr_RiskLoseMoney | You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. | ||||
Bar Chart and Performance Table [Heading] | rr_BarChartAndPerformanceTableHeading | Performance Information | ||||
Performance Narrative [Text Block] | rr_PerformanceNarrativeTextBlock | The Fund has not commenced operations as of the date of this prospectus. As a result, no full calendar year performance information is available. | ||||
Performance One Year or Less [Text] | rr_PerformanceOneYearOrLess | The Fund has not commenced operations as of the date of this prospectus. As a result, no full calendar year performance information is available. | ||||
AQR Small Cap Core Equity Fund | Class L
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Risk/Return: | rr_RiskReturnAbstract | |||||
Management Fee | rr_ManagementFeesOverAssets | 0.45% | ||||
Distribution (12b-1) fee | rr_DistributionAndService12b1FeesOverAssets | none | ||||
Other Expenses | rr_OtherExpensesOverAssets | 0.58% | [1] | |||
Total Annual Fund Operating Expenses | rr_ExpensesOverAssets | 1.03% | ||||
Less: Fee Waivers and/or Expense Reimbursements | rr_FeeWaiverOrReimbursementOverAssets | 0.28% | [2] | |||
Total Annual Fund Operating Expenses after Fee Waivers and/or Expense Reimbursements | rr_NetExpensesOverAssets | 0.75% | ||||
1 Year | rr_ExpenseExampleYear01 | 77 | ||||
3 Years | rr_ExpenseExampleYear03 | 269 | ||||
AQR Small Cap Core Equity Fund | Class N
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Risk/Return: | rr_RiskReturnAbstract | |||||
Management Fee | rr_ManagementFeesOverAssets | 0.45% | ||||
Distribution (12b-1) fee | rr_DistributionAndService12b1FeesOverAssets | 0.25% | ||||
Other Expenses | rr_OtherExpensesOverAssets | 0.58% | [1] | |||
Total Annual Fund Operating Expenses | rr_ExpensesOverAssets | 1.28% | ||||
Less: Fee Waivers and/or Expense Reimbursements | rr_FeeWaiverOrReimbursementOverAssets | 0.28% | [2] | |||
Total Annual Fund Operating Expenses after Fee Waivers and/or Expense Reimbursements | rr_NetExpensesOverAssets | 1.00% | ||||
1 Year | rr_ExpenseExampleYear01 | 102 | ||||
3 Years | rr_ExpenseExampleYear03 | 348 | ||||
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