Swan Defined Risk Funds — Define Risk, Improve Outcomes — that’s Investing Redefined®

Always Invested,
Always Hedged

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 is always invested for consistent long-term returns while remaining always hedged to protect portfolios from large market declines.

Strategy
Strategy

Based on our Defined Risk Strategy

Based on our Defined Risk Strategy (DRS), Swan Defined Risk Funds are an absolute return type, risk-managed approach to asset allocation designed for growth investors.

The goal: to achieve consistent long-term returns while minimizing the downside risk of the equity markets.
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Key elements of our Always Invested, Always Hedged strategy include:

  • 01Always invested using low-cost ETFs
  • 02Designed to seek consistent long-term rolling returns
  • 03Aims to protect client assets during major market downturns
  • 04Always hedged using long-term put options
Process
01

Invest in Equities

Why? To participate in equity markets.

  • ALWAYS INVESTED in low-cost, cap-weighted equity ETFs.
  • No stock picking or market timing.
02

Hedge the Equities

Why? To mitigate risks of bear markets.

  • ALWAYS HEDGED using long-term put options to mitigate risks of bear markets.
03

Seek Additional Return

Why? To offset the cost of the hedge.

  • Actively managing a shorter-term options portfolio, utilizing a disciplined, rules-based approach.
Funds
Swan Defined Risk Fund = CLASS A: SDRAX | CLASS C: SDRCX | CLASS I: SDRIX
Swan Defined Risk Growth Fund = CLASS A: SDAAX | CLASS C: SDACX | CLASS I: SDAIX
Swan Defined Risk Fund
Class A SDRAX Class C SDRCX Class I SDRIX
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Swan Defined Risk Growth Fund
Class A SDAAX Class C SDACX Class I SDAIX
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Portfolio Managers
Randy Swan
Randy Swan
Portfolio Manager
Rob Swan
Rob Swan
Portfolio Manager
Chris Hausman
Chris Hausman, CMT®, CAIA®
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 and co-portfolio manager Rob Swan have been managing the Funds since inception.

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Fund Documents

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Documents
Contact

Swan Capital Management

1099 Main Avenue, Suite 206
Durango, CO 81301

Ultimus Fund Solutions, LLC

Regular Mailc/o Ultimus Fund Solutions, LLC
225 Pictoria Drive, Suite 450
Cincinnati, OH 45246

Express/Overnightc/o Ultimus Fund Solutions, LLC
4221 North 203rd Street, Suite 100
Elkhorn, Nebraska 68022

For investors with general questions

P: 877.896.2590

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.

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.

© Swan Global Investments. The Funds are distributed by Northern Lights Distributors, LLC, member FINRA / SIPC.