Potential Benefits of Managed Futures
Managed futures can play an important role by:
- 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
Growth of a Hypothetical $1,000 investment - September 1, 2000 through December 31, 2021
Source: LoCorr Fund Management
Potential for Increased Diversification
Bonds are represented by Bloomberg U.S. Aggregate Index, 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 a specific Fund.
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.
Index performance is not illustrative of fund performance. One cannot invest directly in an index. The chart shows the signficant S&P drawdowns between 09/01/87 and 12/31/21 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).
Diversification does not assure a profit nor protect against loss in a declining market.