Always Invested,
Always Hedged

Disclosures:

Investors should carefully consider the investment objective, risks, charges and expenses of the Swan Defined Risk Funds. Mutual funds involve risk, including possible loss of principal. There is no guarantee the Fund will meet its objective, generate profits or avoid losses. This and other information is contained in the prospectus and should be read carefully before investing. For a prospectus, please call Swan Defined Risk Funds at (877) 896-2590.

The Funds are distributed by Northern Lights Distributors, LLC, member FINRA / SIPC. Northern Lights Distributors, LLC is not affiliated with Swan Capital Management, LLC, Swan Global Management, LLC, or Swan Global Investments, LLC. Swan Capital Management, LLC, Swan Global Management, LLC, and Swan Global Investments, LLC are affiliated entities. 

Important Risks:

Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. Swan may invest in index ETFs as an underlying asset within each mutual fund, such as:

The use of leverage, such as that embedded in options, could magnify the Fund’s gains or losses. Written option positions expose the Fund to potential losses many times the option premium received.

The adviser’s dependence on its Defined Risk Strategy process and judgments about the attractiveness, value and potential appreciation of particular ETFs and options in which the Fund invests or sells may prove to be incorrect and may not produce the desired results.

Purchased put options may expire worthless and may have imperfect correlation to the value of the Fund’s sector ETFs. Written call and put options may limit the Fund’s participation in equity market gains and may amplify losses in market declines. The Fund’s losses are potentially large in a written put or call transaction. If un-hedged, written calls expose the Fund to potentially unlimited losses.

Definitions:

S&P 500 Index:  the Standard & Poor’s (S&P) 500 Total Return Index is an unmanaged, market-capitalization-weighted index of the 500 largest U.S. publicly traded companies by market value, and assumes any distributions are reinvested back to the index.

Hedge: Hedging is a strategy to limit investment risks. Investors hedge an investment by trading in another that is likely to move in the opposite, or inverse, direction. A risk-reward tradeoff is inherent in hedging; while it reduces potential risk, it may chip away at potential gains. Hedging via put options may be effective because the put option’s inverse relationship with its underlying assets is clearly defined.

Options: An option is a contract that gives the buyer the right to either buy (in the case of a call option) or sell (in  the case of a put option) an underlying asset at a pre-determined price by a specific date. Options are a powerful tool for creating a wide array of potential payoff profiles and may be used on a standalone basis or integrated into a broader portfolio strategy.

Put option: an option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time. 

LEAPS, or long-term equity anticipation securities, are publicly traded options contracts with expiration dates that are longer than one year, up to three years from the date of issue.

Volatility: the measurement of how varied the returns of a given security or market index are over time. It is often measured from either the standard deviation or the variance between those returns. In most cases, the higher the volatility, the riskier the security.

Standard Deviation is a measure of the dispersion of a set of data from its mean. The more spread apart from the benchmark, the higher the deviation.

Beta is a measure of the volatility, or dispersion, of a security or a portfolio in comparison to the market as a whole.