LoCorr's Long/Short Commodities fund navigates commodity volatility

By Toni Weeks

San Diego, Jan. 3 - LoCorr Funds announced the launch of a new fund designed to capture capital appreciation in rising and falling commodities markets, according to a 497 filing with the Securities and Exchange Commission.

The LoCorr Long/Short Commodities Strategy Fund will seek capital appreciation and a secondary objective of managing volatility by investing primarily in securities of limited partnerships, corporations, limited liability companies and other pooled investment vehicles, including commodity pools. Each of these invests long or short in one or more futures, forwards, options, spot contracts or swaps tied to energy resources, metals or agricultural products.

The fund has two strategies: a commodities strategy and a fixed-income strategy. It will execute its commodities strategy by investing up to 25% of its total assets in a wholly owned and controlled subsidiary. About 25% of the fund's assets will be allocated to the commodities strategy and about 75% to a fixed-income strategy of investing primarily in investment-grade securities.

Class A shares will incur a maximum sales charge of 5.75%; class C and class I shares have no sales charge. Only class A and class C shares carry a maximum deferred sales charge, which is 1%, and a redemption fee, which is also 1%. The redemption fee applies to shares redeemed within 30 days.

The management fee for all three share classes is 1.5%. Including other fees and expenses and a fee waiver, the total annual fund operating expenses will be 3.92% for class A shares, 4.67% for class C shares and 3.67% for class I shares.

The fund's investment adviser will be Excelsior, Minn.-based LoCorr Fund Management, LLC. The fund's portfolio managers will be Jon C. Essen of LoCorr and Andrea Johnson of Galliard Capital Management, Inc., the fund's subadviser.

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