LoCorr Funds, a provider of low-correlating alternative investment strategies, has launched the LoCorr Strategic Allocation Fund, a new mutual fund designed to capture equity market gains while minimising losses during periods of market volatility.

According to a press statement, the fund integrates tax-managed equities and multi-manager futures strategies, aiming to provide a tax-efficient, diversified investment solution.

The fund's strategy balances 50% exposure to a tax-managed US equity component with 50% allocation to trend-following and other futures-based strategies. Its equity segment incorporates an active tax-loss harvesting process, which seeks to enhance tax efficiency by offsetting potential gains. Meanwhile, the futures portion includes long and short positions across equities, fixed income, currencies, and commodities in over 250 global markets, aimed at offering diversification when traditional assets struggle.

The fund is managed by a combination of specialised firms: Parametric Portfolio Associates oversees the tax-managed equity component, while BH-DG Systematic Trading, Crabel Capital Management, and P/E Global manage the futures portfolio.

The Strategic Allocation Fund joins LoCorr’s existing lineup of alternative investment solutions, including the recently launched Hedged Core Fund and five long-standing mutual funds, each with over a decade of track record.