Applying the DRS to stocks of the 500 Largest US Companies
The Swan Defined Risk Fund seeks to address common investor concerns, such as seeking long-term capital appreciation and mitigating risks, via a hedged-equity approach to investment in the S&P 500.
Navigating market uncertainty. Capitalizing on market weakness.
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 taking advantage of opportunities in times of extreme market weakness can 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 hedged equity approach that remains passively invested in equities to pursue long-term growth of capital while actively managing the hedge to capitalize on large moves in the equity market: raising the hedge level after large gains and unlocking the hedge value to buy more equity shares after 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 a goals-based, actively-managed hedged equity approach designed for investors seeking to achieve long-term growth of capital and risk-adjusted returns over a full market cycle with potentially less downside risk and volatility than the S&P 500 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 long-term growth of capital
> Always hedged using long-term put options
> Aims to dampen losses and potentially unlock the hedge value to gain more equity shares during major market downturns
Defined Risk Strategy
Other Defined Risk Funds
Invest in Equities
- Always Invested in low-cost equity ETFs for exposure to the US Large Cap equity market
Hedge the Equities
- Always Hedged by actively managing long long-term put options (LEAPs), generally one to two years to expiration, initially
- Purchased at, or near near-the-money
Seek Additional 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. 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 1.53% for Class A, 2.28% for Class C, and 1.28% for Class I.
Lead Portfolio Manager, Founder, President
Portfolio Manager, Chief Operations Officer
Chris Hausman, CMT®
Portfolio Manager, Managing Director-Risk
Randy Swan and 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