The Swan Defined Risk Growth Fund
Applying the DRS to stocks of the 500 Largest US Companies
The Swan Defined Risk Growth Fund seeks to address common investor concerns, such as pursuing portfolio growth while mitigating risk along the way, 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 monitored by smart accounting software.
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 GROWTH FUND OVERVIEW
Class A: SDAAX | Class C: SDACX | Class I: SDAIX
Based on our Defined Risk Strategy, the Swan Defined Risk Growth Fund seeks superior 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 portfolio growth
> Always hedged using long-term put options
> Aims to dampen losses during major market downturns
Defined Risk Strategy
Other Defined Risk Funds
Invest in Equities
- Always Invested in SPDR S&P 500 ETFs (SPY)
- Cap-weighted exposure
- Add additional market exposure through long-term options
Hedge the Equities
- Always Hedged by actively managing long-term put options (LEAPs), generally one to two years to expiration, initially
- Purchased near, or out-of-the-money
Seek Additional Return
- Actively managing shorter-term options portfolio
- Utilizing a disciplined, times-based 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%. 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 2.36% for Class A; 3.11% for Class C; 2.11% 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
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
For general questions or support
E: Email Client Services
For advisors or institutions with questions
P: 970-382-8901, ext. 114