Applying the DRS to U.S. Small Cap 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: SDCAX | Class C: SDCCX | Class I: SDCIX
The goal: to achieve consistent long-term returns while minimizing the downside risk of Small Cap equity investing.
Key elements of the Fund’s 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, all the time, 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
• Daily monitoring
• Rebalance as required
• Re-hedge annually, or as needed
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. 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. The Russell 2000 Index is designed to measure the equity market performance of U.S. small-cap to mid-cap companies. 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%. The fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the fund, at least until December 14, 2019. The Fund’s total annual fund operating expenses after fee waiver are 1.99% for Class A, 2.74% for Class C, and 1.74% for Class I shares, respectively. * Without these waivers, the Fund’s total annual operating expenses would be 2.12% for Class A, 2.87% for Class C, and 1.87% for Class I. Please review the fund’s prospectus for more information regarding the fund’s fees and expenses. These fee waivers and expense reimbursements are subject to possible recoupment from the Fund within the three years after the fiscal year end during which the fees have been waived or reimbursed, if such recoupment can be achieved within the foregoing expense limits. These agreements may be terminated only by the Fund’s Board of Trustees, on 60 days’ written notice to the Fund’s adviser.
Swan Capital Management
1099 Main Avenue, Suite 206
Durango, Co 81301
Gemini Fund Services, LLC
PO Box 541150
Omaha, Ne 68154