The LoCorr Market Trend Fund has passed the USD1 billion mark in net assets this month, just 18 months after its launch on 1 July, 2014.
Based on total returns, the LoCorr Market Trend Fund Class I, ranked in the 6th percentile of 165 funds since its inception; and ranked in the 11th percentile of 179 funds during 2015 in Morningstar’s Managed Futures Category as of 31 December, 2015. Furthermore, the Fund outperformed the universe of the managed futures category since its inception, with the Class I shares returning 16.63 per cent on an annual basis over the approximate 18-month period from July 1, 2014, to 31 December, 2015. This compares to an average annual return of 9.38 per cent for the SG CTA Index, and a 5.62 per cent average return of the category. The robust returns for the Fund also came at a challenging time for equities, with the S&P 500 Index rising only 2.37 perf cent during the time frame versus the 16.63 per cent average return for the Market Trend Fund.
“We are very pleased with how well the Market Trend Fund has been received in the marketplace,” says Kevin Kinzie, CEO of LoCorr Funds. “We believe one of the keys to the Fund’s success is in the education around the role that low-correlating strategies can have in a portfolio. This conviction has been critical in driving our sales, particularly with our larger broker/dealer partners.”
LoCorr’s experienced sales teams, consisting of regionally based wholesalers and their internal partners, have been pivotal to the Fund’s success. Their dedication in delivering the firm’s message about the importance of portfolio diversification is something they believe in whole-heartedly.
The Market Trend Fund is sub-advised principally by Graham Capital Management, which manages more than USD11 billion in assets and has more than 20 years’ experience managing systematic trend-following strategies. The strategy utilises multiple trend-following models that trade a broad range of liquid, global markets, including interest rates, foreign exchange, stock indices and commodities. One of the key differentiating factors of the strategy is Graham Capital’s proprietary portfolio construction process, which seeks to build a more diverse portfolio with the goal of generating superior risk-adjusted returns. With no long or short bias, this strategy is designed to have the ability to perform well in both rising and falling markets.