DURANGO, Colo., Jan. 13, 2015 /PRNewswire/ --
- The Swan Defined Risk Emerging Markets Fund (Tickers: SDFAX, SDFCX, SDFIX) seeks to offer a defined risk hedged equity solution for the emerging markets asset class.
- The Fund objective is to seek income and growth. The Fund seeks to reach this object by minimizing risk, improving long-term returns and lowering volatility by applying Swan's proprietary Defined Risk Strategy (DRS) to a basket of international stocks and exchange-traded funds (ETFs).
- Swan's DRS has a successful track record in its U.S. equities product since 1997, and the Fund's managers believe that this innovative method of combining hedging and option income can be applied to other asset classes such as emerging markets.
Swan Global Investments, LLC. (Previously, Swan Wealth Advisors, Inc.), announced the launch of the Swan Defined Risk Emerging Markets Fund (Tickers: SDFAX, SDFCX, SDFIX). The Fund seeks to implement the Swan Defined Risk Strategy (DRS) with a basket of international stocks and exchange-traded funds (ETFs), and will be available on numerous platforms.
Information regarding the Swan Defined Risk Emerging Markets Fund may be obtained by contacting the company directly at 970-382-8901 or www.swanglobalinvestments.com.
"We believe that it is imperative for investors to find alternative forms of asset growth and diversification that have upside potential, especially in today's low interest rate and perceived risk environment," said Randy Swan, President and Portfolio Manager. "The expansion of our Defined Risk Strategy to emerging markets may provide investors with an investment product that is non-correlated to traditional asset classes, helping to guard against systematic risk to long-term returns with a carefully constructed hedging and income strategy."
Swan's investment philosophy is that market timing and stock selection are imperfect investment tools, making it extremely difficult to out-perform a respective benchmark over time. Furthermore, Swan believes that market risk, regardless of the underlying asset class, cannot be minimized or reduced solely by diversification across asset classes. This claimed risk reduction by asset allocation is strictly theoretical and typically based upon relationships that existed over a particular period. There is no guarantee that these same relationships will continue in the future. Options, and specifically hedging with options, can help to address market risk directly.
It is through this approach that Swan has been able to lower the market risk associated with the S&P 500 in its U.S. equities product since July of 1997 by quantifying risk through its proprietary DRS, rather than by using approaches built on hypothetical speculation. The company's new Defined Risk Emerging Markets Fund fully implements the principles of the DRS, with actively managed equity exposure through emerging market index ETFs that are fully hedged at all times, with no aspiration to market prediction, and an options income strategy built on defined risk.
"Our research confirms the effectiveness of the DRS engine with other asset classes and most extensively with international equities, both foreign developed and emerging markets," said Mr. Swan. "We are excited that the Defined Risk Emerging Markets Fund will bring Swan's proprietary and compelling investment method to an asset class that we believe is brimming with growth potential."
About Swan Global Investments
Swan Global Investments is a SEC registered investment advisor providing asset management services utilizing the Swan Defined Risk Strategy. Please note that registration of the Advisor does not imply a certain level of skill or training.
Investors should carefully consider the investment objective, risks, charges and expenses of the Swan Defined Risk Emerging Markets Fund. This and other information is contained in the prospectus and should be read carefully before investing. For a prospectus please call Swan Defined Risk Fund at (877) 896-2590. The Fund is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Northern Lights Distributors, LLC is not affiliated with Swan Capital Management, LLC and Swan Global Investments, LLC. Mutual funds involve risk, including possible loss of principle. ETFs are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in ETFs and may be higher than other mutual funds that invest directly in stocks. ETFs are subject to specific risks, depending on the nature of the 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 Fund is a new mutual fund and has a limited history of operation. The adviser's dependence on its DRS process and judgments about the attractiveness, value and potential appreciation of particular ETFs and options in which the Fund invests or writes 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. There is no guarantee the fund will meet its objectives. 6020-NLD-1/12/2015
SOURCE Swan Global Investments, LLC