The Swan Defined Risk Fund
Applying the DRS to stocks of the 500 Largest US Companies
The Swan Defined Risk Fund seeks to address common investor concerns such as protecting capital, tax implications and market risk while investing in low-cost ETF that indexes the S&P 500.
Investing to help minimize downside risk The market is unpredictable, making it difficult to time the markets or consistently pick outperforming stocks. That’s why we believe reducing downside risk can significantly impact wealth creation. With this in mind, we developed our Defined Risk Strategy in 1997 as a way to offer our clients a distinctive, innovative tool that seeks consistent returns while protecting portfolios from large market declines.
SWAN DEFINED RISK FUND OVERVIEW
Class A: SDRAX | Class C: SDRCX | Class I: SDRIX
Based on our Defined Risk Strategy, the Swan Defined Risk Fund is an absolute return type, risk-managed approach to asset allocation designed for growth investors and based on U.S. equities/S&P 500. See the disclosures below for more information.
The goal: to achieve positive returns while minimizing the downside risk of U.S. equity markets.
Key elements of the Fund’s strategy include:
> No reliance on market timing or stock selection
> Designed to seek consistent returns
> Aims to protect client assets during market downturns
> Always hedged, all the time, using put options
• Buy all nine equally-weighted S&P 500 Select Sector SPDR ETFs
• Invested at all times
• Buy puts on the S&P 500
• At – or near-the-money
• Long-term – generally one to two years, initially
Seek to Generate Income
• Seek to sell shorter-term options
• Market-neutral trading strategies
Monitor & Adjust
• Daily monitoring
• Rebalance as required
• Re-hedge annually
Performance shown is historical and does not guarantee future results. Current performance may be lower or higher. Because share price, principal value, and return will vary, you may have a gain or loss when you sell fund shares. There is no assurance the fund will pay dividends or capital gains in the future. Performance assumes the reinvestment of dividends and capital gains. “Without sales charge” performance does not reflect the current maximum sales charge. Had the sales charge been included, the Fund’s returns would have been lower. Class I shares have no sales charge and may be purchased by specified classes of investors. You cannot invest directly in an index or average. For performance information current to the most recent month end, please call (877) 896-2590. Maximum sales charge for Class A Shares is 5.50%. Gross annual fund operating expenses are 1.55% for Class A, 2.29% for Class C, and 1.30 for Class I.
Randy Swan started Swan Global Investments in 1997, looking to supply investment management services that were not available to most investors. Early in his financial career, Randy saw that options provided an opportunity to minimize investment risk.
Randy and co-portfolio manager Rob Swan have been managing the Funds since inception.
Swan Capital Management
1099 Main Avenue – Unit 206
Durango, Co 81301
Gemini Fund Services, LLC
PO Box 541150
Omaha, Ne 68154