Potential Benefits of Managed Futures

Used by investment professionals for more than 30 years, managed futures are an asset class with over $300 billion in assets under management. 
Managed futures can play an important role by:
     - Providing the potential for positive returns in a variety of economic environments
     - Possibly increasing diversification in a portfolio by investing in commodities and financial futures
     - Helping to potentially reduce risk


Potential for Enhanced Returns
Managed futures have the potential to produce positive returns in both equity bull and bear markets, striving to enhancing a portfolio’s overall performance.


Performance of Managed Futures and U.S. Stock
Hypothetical Growth of a $1,000 investment - September 1, 2000 through June 30, 2019

 
Source: LoCorr Fund Management
Since inception 09/01/2000. The growth of $1,000 chart reflects a hypothetical $1,000 investment in theindex noted. Index performance is not illustrative of fund performance. One cannot invest directly in an index. Past performance is not a guarantee of future results. U.S. stocks are represented by S&P 500 Index and managed futures are represented by CISDM CTA Index. The referenced indices are shown for general market comparisons and are not meant to represent the Fund. Fund performance may be obtained by calling 1.855.LCFUNDS (1.855.523.8637).


Potential for Increased Diversification
Managed futures provide exposure to a broad variety of global investments in commodities and financial futures. The below hypothetical charts illustrate how adding managed futures to a portfolio of stocks and bonds has the potential to enhance returns and reduce volatility.
 

Source: LoCorr Fund Management
The referenced indices are shown for general market comparisons and are not meant to represent a specific Fund. Bonds are represented by Barclays Capital U.S. Aggregate Index, Stocks are represented by S&P 500 Index, and Managed Futures are represented by CISDM CTA Index.  


Potential for Mitigated Risk
Managed futures have shown strong historical performance when stocks have suffered. The graph below illustrates the performance of managed futures during the 5 worst drawdowns of the S&P 500 Index.

Source: LoCorr Fund Management
Index performance is not illustrative of fund performance. One cannot invest directly in an index. The chart shows the signficant S&P drawdowns between 1/1/87 and 12/31/18 using month end data. Managed Futures Index refers to the Barclays CTA Index. Fees and transaction costs are reflected.  Stocks refers to the S&P 500 Total Return Index. This total return index does not reflect fees or transaction costs, but includes net dividends and is calculated by adding an indexed dividend return to the index price change for a given time period. 
Fund performance may be obtained by calling 1.855.LCFUNDS (1.855.523.8637).

 

 
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Diversification does not assure a profit nor protect against loss in a declining market.