LoCorr Funds has announced that it has restructured its Managed Futures Strategy Fund with the intent to provide significant benefits to investors by reducing overall fund expenses, focusing on improving tax efficiency and offering access to three prominent institutional investment managers in the managed futures space.
The new Fund structure provides more transparency and clarity through the elimination of the total return swap and thereby offering direct access to the investment managers as sub-advisers of the Fund. This change eliminates all fees associated with the swap, including any performance-based incentive fees paid to the underlying managers. The overall fees will be a minimum of 1.55% lower annually, based on share class, and reductions will likely be higher than the minimum due to the elimination of incentive fees. This new structure should also result in improved tax efficiency seeking to take advantage of the long and short-term capital gains treatment of certain managed futures markets.
LoCorr Managed Futures Fund is a multi-manager solution combining three established investment managers, each with a long history of investment expertise in the managed futures space. Graham Capital Management (founded in 1994 with over $12B AUM), Millburn Ridgefield (with a history of research dating back to the 1970s), and Revolution Capital Management (a shorter-term Commodity Trading Advisor), all offer distinct, well-established strategies with long-term track records, and when combined, deliver the potential for enhanced risk-adjusted returns. The complementary nature of these three strategies is designed to make this Fund a distinctive solution for investors seeking the diversification benefits of low-correlating strategies.
“As we’ve seen the industry evolve, we’re pleased to take the lead in enhancing the LoCorr Managed Futures Strategy Fund,” said Kevin Kinzie, CEO of LoCorr Funds, “We believe these changes have the potential to offer great benefits to shareholders and make this fund one of the most competitive multi-manager investment solutions of its type in the industry. At LoCorr, we remain committed to delivering solutions that can provide low correlation to traditional stocks and bonds and to making these solutions easily available to clients.”