Applying the DRS to stocks of the 500 Largest US Companies
Investing for growth, Seeking protection of capital.
The market is unpredictable, making it difficult to plan long-term outcomes. That’s why we believe reducing downside risk can help smooth out returns over market cycles and significantly impact wealth creation over the long term.
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 long-term returns while protecting portfolios from large market declines.
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: is to achieve consistent long-term returns while minimizing the downside risk of U.S. equity markets.
Key elements of our Always Invested, Always Hedged strategy include:
> Always invested using low-cost ETFs
> Designed to seek consistent long-term returns
> Aims to protect client assets during major market downturns
> Always hedged using put options
Defined Risk Strategy
Other Defined Risk Funds
Invest in Equities
• Invested at all times
Hedge the Equities
• At – or near-the-money
• Long-term – generally one to two years, initially
Trade Options Strategies
• Typically, non-directional, market-neutral initially
Monitor & Adjust
• Rebalance as required
• Re-hedge annually or as required
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 1.52% for Class A, 2.27% for Class C, and 1.27 for Class I.
Swan Capital Management
1099 Main Avenue – Unit 206
Durango, Co 81301
Gemini Fund Services, LLC
PO Box 541150
Omaha, Ne 68154