Fund Awarded 4-Star Overall Morningstar Rating among 67 funds in the Systematic Trend Category as of June 30, 2024, based on risk-adjusted returns
MINNEAPOLIS, July 11, 2024 (GLOBE NEWSWIRE) — LoCorr Funds, a leader in low-correlating alternative investments, today announced the LoCorr Market Trend Fund (LOTIX) reached its 10-year anniversary on June 30, 2024.
The LoCorr Market Trend Fund is ranked 4 out of 45 funds in the Morningstar Systematic Trend Category for the 10-year period as of June 30, 2024, based on total returns, and holds a 4-star Overall Morningstar Rating. (The LoCorr Long/Short Commodities Strategy Fund, LCSIX, LCSAX and LCSCX hold the top three positions in the Category for the 10-year period ending June 30, 2024.) The Market Trend Fund features a global macro-oriented strategy that seeks to provide low correlation to nearly all asset classes, offering strong diversification benefits and positive absolute returns while mitigating downside risk.
“We are thrilled to celebrate the 10th anniversary of LoCorr Market Trend Fund, which is a significant milestone, and to see it recognized as a 4-star fund by Morningstar during this time period,” said Kevin Kinzie, CEO of LoCorr Funds. “We launched the Market Trend Fund a decade ago based on the belief that low-correlating strategies with daily liquidity belong in every client portfolio. That conviction still rings true today and we are excited to offer the top four funds in the Morningstar Systematic Trend Category.”
“In addition, we are proud to have launched the Market Trend Fund with Graham Capital Management (Graham) as the sub-advisor offering advisors and their clients access to an esteemed institutional manager through a ‘40 Act fund. We are grateful for Graham’s continuing commitment to a strategy that provides diversification through its distinct return stream and seeks to help create a smoother ride for clients.”
“We are honored to celebrate the 10-year anniversary of the LoCorr Market Trend Fund and our long-standing partnership with LoCorr,” said Brian Douglas, Chief Executive Officer of Graham Capital Management. “This milestone is a testament to our shared commitment to delivering exceptional value to clients. Over the past decade, the Fund has provided valuable diversification to investors, particularly in recent years which have been marked by significant turbulence for both stocks and bonds. We look forward to continuing our collaboration and supporting the Fund’s success in the years to come.”
With a sequence of returns typically different from traditional stock and bond investments, LoCorr Market Trend Fund was launched in response to advisor demand for diversifying strategies that seek portfolio stability and growth in an ever-changing investment landscape. Since its inception on June 30, 2014, the Fund has a 0.05 correlation with the S&P 500 Index and a -0.24 correlation with the Bloomberg U.S. Aggregate Bond Index.
The LoCorr Market Trend Fund (LOTIX) was ranked 32 out of 69 funds, 14 out of 67 funds, 11 out of 64 and 4 out of 45 funds in the Morningstar Systematic Trend Category for the 1-year, 3-year, 5-year and 10-year periods, respectively as of June 30, 2024, based on total return. The LoCorr Long/Short Commodities Strategy Fund (LCSIX) was ranked 36 out of 69, 56 out of 67 funds, 53 out of 64 funds and 1 out of 45 funds; LoCorr Long/Short Commodities Strategy Fund (LCSAX) was ranked 41 out of 69, 59 out of 67 funds, 57 out of 64 funds and 2 out of 45 funds; and LoCorr Long/Short Commodities Strategy Fund (LCSCX) was ranked 46 out of 69, 61 out of 67 funds, 62 out of 64 funds and 3 out of 45 funds in the Morningstar Systematic Trend Category for the 1-year, 3-year, 5-year and 10-year periods, respectively as of June 30, 2024, based on total return.
About LoCorr Funds
LoCorr Funds is a leading provider of low-correlating investment strategies, founded on the belief that non-traditional investment strategies with low correlation to stocks and bonds can reduce risk and help increase portfolio returns. LoCorr offers investment solutions that not only provide the potential for positive returns in rising or falling markets but also help to achieve diversification in investment portfolios. LoCorr Funds is headquartered in Excelsior, MN. For more information, please visit www.LoCorrFunds.com or call 1.888.628.2887.
About Graham Capital Management
Graham Capital Management, L.P. is an alternative investment manager founded in 1994 by Kenneth G. Tropin. For three decades, Graham has specialized in providing compelling quantitative and discretionary alpha opportunities across a variety of market environments that seek low correlation to traditional investments. While Graham is one of the longest-running macro and trend-following managers, the Firm is committed to the innovative evolution of its strategies, supported by an established investment, technology, and operational infrastructure. By leveraging the unique synergies between the Firm’s quantitative and discretionary trading businesses, Graham has developed a broad range of complementary alpha strategies with a focus on thoughtful portfolio construction, active risk management, and diversification by design. Significant proprietary capital is invested in many of Graham’s strategies, contributing to the alignment of interest between the Firm and its clients. Graham’s clients include global institutions, endowments and foundations, family offices, sovereign wealth funds, investment management advisors, and qualified individual investors. For more information, please visit www.GrahamCapital.com.
For additional information about LoCorr Funds, contact:
Jenny Brookfield, 952-767-6906
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The Morningstar Rating™ for funds is calculated for managed products with at least a three-year history, without adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating™ for a managed product is derived from a weighted average of the performance figures associated with its three- and five-year Morningstar Rating™ metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. The LoCorr Market Trend Fund (LOTIX) was rated 4 stars among 67, 4 stars among 64, and 4 stars among 45 Systematic Trend funds in the overall, 3, 5 and 10 years, respectively, as of 6/30/24, based on risk-adjusted returns. The Morningstar Rating is for the Institutional share class only; other classes may have different performance characteristics.
Morningstar classifies funds into categories based on similar investment objective and strategy. Morningstar rankings are based on a fund’s total return compared to its Morningstar Category of exchange-traded and open-end mutual funds. The highest rank is 1. The Fund’s rankings may have been lower were it not for fee waivers in effect during the ranking periods.
Rankings are relative to a peer group and do not necessarily mean the Fund had high or positive total returns. Morningstar updates its fund rankings daily. Past performance does not guarantee future results.
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 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.
Diversification does not assure a profit nor protect against loss in a declining market. Correlation measures how much the returns of two investments move together over time. Past performance is not necessarily indicative of future results.
S&P 500 Index is a capitalization weighted unmanaged benchmark index that includes the stocks of 500 large capitalization companies in major industries. Bloomberg U.S. Aggregate Bond Index is a broad-based bond index comprised of government, corporate, mortgage and asset-back issues rated investment grade or higher.
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