QICLX
AQR International Multi-Style-I
Strategic Focus on Value and Momentum
The AQR International Multi-Style-I Fund (QICLX) distinguishes itself with a strategic focus on investing in attractively valued companies that exhibit positive momentum and stable business operations. This approach is designed to capture long-term capital appreciation by targeting non-U.S. equities, which constitute at least 80% of its net assets. The fund’s management style is rooted in a disciplined, quantitative approach that seeks to identify undervalued opportunities across global markets. By emphasizing both value and momentum, the fund aims to balance the potential for growth with the stability of established companies, making it a compelling choice for investors looking to diversify their portfolios with international exposure. The fund’s ability to adapt to changing market conditions while maintaining a focus on core investment principles sets it apart in the Foreign-Large Value category.
At A Glance
Executive Summary
AQR International Multi-Style-I (QICLX) offers long-term capital growth through non-U.S. equities, with a focus on value and momentum. Competitive expense ratio and strong 1-year return.
– Strong 1-year return of 21.03% outperforming the benchmark. – Diversified international exposure with a focus on value and momentum. – Competitive expense ratio of 0.56%. – High yield of 2.98% appealing to income-focused investors.
– Higher beta of 1.10 indicates more volatility compared to the benchmark. – Lower Sharpe ratio of 0.03 suggests less risk-adjusted return. – Limited exposure to small and medium-cap stocks.
Impressive Performance in a Competitive Landscape
The AQR International Multi-Style-I Fund has demonstrated impressive performance, particularly over the past year, with a 1-year return of 21.03%, surpassing its benchmark, the MSCI ACWI xUS DivAdj Index, which returned 20.56%. This outperformance is indicative of the fund’s effective strategy in capturing value and momentum in international markets. Over longer time frames, the fund has maintained competitive returns, with a 5-year annualized return of 6.99% and a 10-year return of 5.18%. These figures highlight the fund’s ability to navigate various market cycles and deliver consistent results. The standout performance periods can be attributed to the fund’s strategic allocation in sectors like financials and technology, which have been key drivers of growth. This performance analysis underscores the fund’s capability to outperform its peers in the Foreign-Large Value category.
Navigating Risk with Strategic Precision
The AQR International Multi-Style-I Fund exhibits a nuanced risk profile, characterized by a beta of 1.10, indicating a slightly higher volatility compared to its benchmark. Despite this, the fund’s alpha of 0.45% suggests it has been able to generate excess returns relative to its risk. The Sharpe ratio of 0.03, while modest, reflects the fund’s focus on achieving returns that justify its risk exposure. The fund’s risk management strategy is further evidenced by its R-squared value of 90.58%, showing a strong correlation with the benchmark, and a downside risk (UI) of 2.29, which indicates a measured approach to mitigating losses. The fund’s ability to manage risk while pursuing growth opportunities makes it a viable option for investors with a moderate risk tolerance seeking international diversification.
Diverse Holdings Reflecting Strategic Allocation
The portfolio composition of the AQR International Multi-Style-I Fund is a testament to its strategic allocation across various sectors and regions. With significant holdings in financials (24.70%), industrials (19.51%), and technology (11.59%), the fund is well-positioned to capitalize on growth opportunities in these dynamic sectors. Notable holdings include Novartis AG, Novo Nordisk AS, and SAP SE, which reflect the fund’s focus on stable, high-performing companies. The fund’s allocation to large-cap stocks (46.56%) and extra-large-cap stocks (26.07%) underscores its emphasis on established market leaders. This strategic allocation not only enhances the fund’s growth potential but also provides a level of stability, making it an attractive option for investors seeking a balanced approach to international equity exposure.
Yielding Opportunities for Income Seekers
The AQR International Multi-Style-I Fund offers a yield of 2.98%, which is notably higher than many of its peers in the Foreign-Large Value category. This yield is a result of the fund’s strategic focus on dividend-paying stocks, providing a steady income stream for investors. The fund’s income strategy is particularly appealing to those who prioritize income generation alongside capital appreciation. By investing in companies with strong dividend histories, the fund not only enhances its yield but also aligns with the interests of income-focused investors. This approach makes the fund suitable for those looking to balance growth with income, offering a compelling option for investors seeking to diversify their income sources through international equities.
Cost-Effective Investment with Competitive Expenses
The AQR International Multi-Style-I Fund boasts a competitive expense ratio of 0.56%, which is relatively low compared to other funds in the Foreign-Large Value category. This cost-effectiveness is a significant advantage, as lower expenses can lead to higher net returns for investors. By maintaining a disciplined approach to cost management, the fund ensures that a greater portion of its returns is passed on to investors. This focus on minimizing expenses without compromising on performance makes the fund an attractive option for cost-conscious investors. The fund’s ability to deliver strong returns while keeping expenses in check highlights its commitment to providing value to its shareholders.
Standing Out in a Crowded Field
When compared to similar funds, the AQR International Multi-Style-I Fund stands out due to its unique combination of value and momentum strategies, competitive expense ratio, and strong yield. While funds like BNY Mellon Worldwide Growth-Y and American Funds Europacific Growth-A offer competitive returns, QICLX’s focus on non-U.S. equities with a disciplined investment approach provides a distinct advantage. Its higher yield of 2.98% compared to peers like BNY Mellon Worldwide Growth-I (0.44%) further differentiates it as a suitable choice for income-focused investors. The fund’s strategic allocation and risk management also set it apart, making it a compelling option for those seeking a balanced approach to international investing.
Future Outlook
The AQR International Multi-Style-I Fund is poised for growth, especially in bullish international markets. Its focus on value and momentum could capitalize on economic recoveries abroad. Ideal for investors seeking diversified international exposure with a growth and income focus.
Ideal for Growth-Oriented and Income-Focused Investors
The AQR International Multi-Style-I Fund is well-suited for investors who are looking for a blend of growth and income from their international investments. Its strategic focus on value and momentum, coupled with a competitive yield, makes it an attractive option for long-term investors with a moderate risk tolerance. The fund’s emphasis on large-cap and extra-large-cap stocks provides stability, while its diversified sector allocation offers growth potential. This makes it ideal for investors seeking to diversify their portfolios with international exposure, particularly those who are income-focused or have a growth-oriented investment strategy. The fund’s ability to deliver consistent returns while managing risk effectively makes it a suitable choice for a wide range of investors.
Current Market Context and Strategic Positioning
In the current market environment, characterized by fluctuating interest rates and evolving global economic conditions, the AQR International Multi-Style-I Fund is strategically positioned to capitalize on international opportunities. The fund’s focus on non-U.S. equities allows it to benefit from economic recoveries in foreign markets, particularly in sectors like financials and technology, which are poised for growth. Additionally, the fund’s emphasis on value and momentum strategies aligns well with the current trend of seeking undervalued opportunities with growth potential. As interest rates impact global markets, the fund’s diversified approach and strategic sector allocation provide a buffer against volatility, making it a resilient choice for investors navigating the complexities of the international investment landscape.
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