The Swan Defined Risk Foreign Fund
Applying the DRS to Foreign Markets
The Swan Defined Risk Foreign Fund seeks to address common investor concerns such as seeking long-term capital appreciation while seeking preservation of that capital when investing in developed foreign markets.
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.
SWAN DEFINED RISK FOREIGN FUND OVERVIEW
Class A: SDJAX | Class C: SDJCX | Class I: SDJIX
Based on our Defined Risk Strategy, the Swan Defined Risk Foreign Fund investors seeking to achieve long-term growth of capital with superior risk-adjusted returns over a full market cycle with potentially less downside risk and volatility than the benchmark, MSCI EAFE Index. See the disclosures below for more information.
The goal: is to achieve long-term growth of capital, 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 rolling returns
> Always hedged using long-term put options
> Aims to protect client assets during major market downturns
Defined Risk Strategy
Other Defined Risk Funds
Invest in Equities
- Always Invested in ETFs or a basket of stocks that closely represent the MSCI EAFE Index
Hedge the Equities
- Always Hedged by actively managing long-term put options (LEAPs), generally one to two years to expiration, initially
- Purchased at, or near-the -money
Seek Addtional Return
- Actively managing shorter-term options portfolio utilizing a disciplined, time-tested approach
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 MSCI (Morgan Stanley Capital International) EAFE index comprises the MSCI country indexes capturing large and mid-cap equities across developed markets, excluding the U.S. and Canada. 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 advisor has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until October 31, 2021 (exclusive of any taxes, interest, brokerage commissions, dividend expense on securities sold short, acquired fund fees and expenses, or extraordinary expenses such as litigation or reorganization costs). The Fund’s total gross annual fund operating expenses are 2.42% for Class A; 3.17% for Class C; 2.17% for Class I. After the fee waiver these expenses are 1.65% for Class A, 2.40% for Class C, and 1.40% for Class I shares, respectively.. 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.
Lead Portfolio Manager, Founder, President
Portfolio Manager, Chief Operations Officer
Micah Wakefield, CAIA®
Portfolio Manager, Director of Research & Product Development
Chris Hausman, CMT®
Portfolio Manager, Managing Director-Risk
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 Swan and Rob Swan have been managing the Funds since inception.
Swan Capital Management
1099 Main Avenue, Suite 206
Durango, Co 81301
Gemini Fund Services, LLC
PO Box 541150
Omaha, Ne 68154