MINNEAPOLIS, MN—(Marketwired – November 09, 2015) – Not to boast, but the LoCorr Market Trend Fund (“the Fund”) has had some notable attention as of late. The Fund began the year at $60 million and has rapidly grown to $730 million through third quarter. We anticipate the Fund could reach its $1 billion milestone by the end of 2015.
Market Trend Fund wins HFM U.S. Performance Award
LoCorr Funds is pleased to announce that its LoCorr Market Trend Fund (LOTIX), has been awarded the HFM Performance Award, in the “40 Act Fund – Other” category. There were 54 funds being considered in the category and judging was based on both quantitative and qualitative factors. The awards recognize those funds that have outperformed their peers over the past 12 months ending June 30, 2015. The winners were announced at a ceremony on October 22, 2015, in New York City.
“We were thrilled to hear that the Market Trend Fund achieved this impressive performance award over its competitors,” said Kevin Kinzie, CEO of LoCorr Funds. “The rigorous process the funds are judged on is very thorough, and we are honored that the Market Trend Fund did so well.”
Market Trend Fund achieves the Wall Street Journal “Category Kings” #1 Ranking
On October 2, 2015, the Market Trend Fund was ranked as a Category King by The Wall Street Journal (WSJ) based on Lipper data. The Fund was ranked 1st out of 91 Managed Futures funds by the WSJ and ranked 1 out of 103 Alternative Managed Futures funds by Lipper for the one–year period ending September 30, 2015. The WSJ ranked total returns for the top 10 funds in each category by one–year performance for this list. This is a repeat performance since the Market Trend Fund also achieved the #1 ranking out of 93 Managed Futures funds by WSJ and ranked 1 out of 96 Alternative Managed Futures funds by Lipper for the one–year period ending June 30, 2015.
Market Trend listed in Barron's
And finally, the Market Trend Fund was listed in the recent Barron's article, “Alternative Investments: Surfing the Market”, as a top performing alternative mutual fund in the managed futures category. The article points out that the real value of managed futures funds is the ability to hold up during a sustained downturn, and their historic uncorrelation with equities and fixed income strategies.
LoCorr Market Trend Fund
The Market Trend Fund is managed principally by Graham Capital Management, L.P., (“Graham Capital”) utilizing a quantitative trading system driven by multiple trend–following models that select long and short positions in the global futures and foreign exchange markets. The Fund trades a broad range of markets, including global interest rates, foreign exchange, global stock indices and commodities. Market Trend's primary investment objective is capital appreciation in both rising and falling markets, thereby seeking to provide further diversification for traditional investments.
LoCorr Fund Management has oversight of the Fund's investments and manages the allocations within the Fund's investment strategies. In addition to the Fund's principal investment strategy sub–advised by Graham Capital, the Fund employs a cash management program sub–advised by Nuveen Asset Management (“Nuveen”).
Graham Capital was founded in 1994 by Kenneth G. Tropin as a proprietary trading company and currently manages over $10 billion in AUM as of 9/30/15, for global institutions and individual investors. Graham Capital focuses on macro–oriented quantitative and discretionary investment strategies in the global fixed income, currency, commodity and equity markets. The firm's strategies are designed to produce robust absolute and risk–adjusted returns while maintaining low correlation to traditional asset classes, as well as other alternative investment strategies. LoCorr is pleased to offer Graham Capital's quantitative macro trading expertise in a liquid, competitively–priced mutual fund.
“Quantitative macro trading has been a core competency at Graham for 20 years. Our client base consists primarily of global institutions seeking strategies that provide strong absolute returns as well as diversification to a traditional portfolio. As the use of liquid alternatives has expanded, we are excited to bring our investment strategy to the market in a liquid, mutual fund format,” says Kenneth G. Tropin, Chairman and Founder of Graham Capital.
About LoCorr Funds
LoCorr Funds today is well known for educating advisors and investors about the potential advantages of including low–correlating, alternative investments in portfolios. The Firm has a total of over $1.5B in AUM as of 9/30/15. The LoCorr Market Trend Fund is one of six funds in LoCorr's lineup. Other Funds include, LoCorr Managed Futures Strategy Fund; LoCorr Long/Short Commodities Strategy Fund; LoCorr Long/Short Equity Fund; LoCorr Spectrum Income Fund; and LoCorr Multi–Strategy Fund.
Since its founding, LoCorr Funds has promoted the use of low–correlating investment strategies for the potential of enhancing returns and reducing risk in portfolios. Through its strong distribution network, the firm remains well positioned for continued growth as investors demand alternatives to traditional investments to help achieve portfolio diversification. LoCorr Funds is headquartered in Excelsior, MN. For more information, please visit www.LoCorrFunds.com, www.LoCorrFundManagement.com, or call 1.888.628.2887.
The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 1.855.LCFUNDS, or visiting www.LoCorrFunds.com. Read it carefully before investing.
Mutual fund investing involves risk. Principal loss is possible. The Fund is non–diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to an individual investment's volatility than a diversified fund. The Fund invests in foreign investments and foreign currencies which involve greater volatility and political, economic and currency risks and differences in accounting methods. The Fund may make short sales of securities, which involves the risk that losses may exceed the original amount invested. Investing in commodities may subject the Fund to greater risks and volatility as commodity prices may be influenced by a variety of factors including unfavorable weather, environmental factors, and changes in government regulations. The Fund may invest in derivative securities, which derive their performance from the performance of an underlying asset, index, interest rate or currency exchange rate. Derivatives can be volatile and involve various types and degrees of risks, and, depending upon the characteristics of a particular derivative, suddenly can become illiquid. Derivative contracts ordinarily have leverage inherent in their terms which can magnify the Fund's potential for gains or losses through increased long and short position exposure. The Fund may access derivatives via a swap agreement. A risk of a swap agreement is the risk that the counterparty to the agreement will default on its obligation to pay the Fund. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer–term debt securities. Investments in Asset Backed, Mortgage Backed, and Collateralized Mortgage Backed Securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. The LoCorr Market Trend Fund is new and has limited performance history.
For the HFM U.S. Performance Awards, judges looked at both quantitative and qualitative factors, including the pedigree of the managers, structural criteria, reputation with investors, as well as personal knowledge of each business. Additionally, they looked at the last 5 years performance or the history of the fund depending on the length of track record, and then narrowed it down to the last 3 years and 12 months ending June 2015. Volatility and allocator input were also considered.
The Wall Street Journal (WSJ) ranking is based on Lipper data. However, the WSJ only considers the largest class of a Fund in their “pool” of Funds for any particular category, whereas Lipper counts every class of a Fund as a separate ranking entity. Because the number of Funds in the WSJ ranking category may be smaller than the Lipper category, the WSJ ranking for the Fund may be higher than the Lipper ranking. The ranking is specific to the I Share class and does not apply to other share classes of the Fund. Past performance is not indicative of future performance.
Lipper Analytical Serviced, Inc. is an independent mutual fund research and rating service. Each Lipper average represents a universe of Funds with similar investment objectives. Ranking for the period shown are based on Fund total returns with dividends and distributions reinvested and do not reflect sales charges.
Fund holdings and sector allocations are subject to change and are not recommendations to buy or sell any security. Current and future holdings are subject to risk. References to other mutual funds should not be interpreted as an offer to these securities. One cannot invest directly in an index.
Correlation measures how much the returns of two investments move together over time. Diversification does not assure a profit nor protect against loss in a declining market.
The LoCorr Funds are distributed by Quasar Distributors, LLC. Graham Capital Management, L.P. and Nuveen Asset Management are sub–advisers to the LoCorr Market Trend Fund. The sub–advisers are not affiliated with Quasar Distributors, LLC.
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© 2015 LoCorr Funds