One commodity fund has received the dreaded Negative rating from Morningstar.
According to analyst Michelle Canavan, a higher fee at Oppenheimer Commodity Strategy Total Return (141 basis point expense ratio) and the departure of its long-time portfolio manager, Kevin Baum, who left in April, doesn't help the fund’s case. “Robert Baker, co-manager since 2007 and analyst at the fund for over a decade, was promoted to the lead role, but the small team lacked sufficient resources following Baum's departure,” wrote Canavan.
“The fund's unimpressive track record, mostly untested management team, and higher fees don't instill much optimism. For now, investors are likely better off gaining commodity exposure from cheaper and more proven options.”