Investment Solutions

An Outcome-Oriented Investment Solution

Investors do not care about where an investment product 'fits', they care about their statement balance when that money is needed. They care about achieving their desired outcomes.

Investors need solutions to the challenges they face today and beyond, not another product iteration.

In a world of products, we're offering a solution.

The Swan Defined Risk Strategy was designed for what's best for the investor, not what's easiest to "sell".  Randy Swan, Founder and Portfolio Manager created the strategy to solve investment challenges and address market risk directly, not to 'fit' into a trending category.

The Defined Risk Strategy is uniquely designed to provide what investors need to grow and protect wealth:

  • Consistent exposure to the market for capital appreciation
  • Utilizing a unique 'always hedged' approach to mitigate large losses
  • Remove timing and emotions from the process

An Investment Solution For Multiple Needs

At Swan Global Investments, we’ve applied the success of our Defined Risk Strategy across multiple investment solutions and asset classes. The Swan DRS can play varying roles inside any portfolio, including:

  • A core equity replacement or supplement
  • A fixed income replacement
  • An absolute return or alternative asset

Swan DRS offers investors a combination of upside opportunity with minimized downside risk. Contact us and we’ll be glad to tell you more about our strategy and the ways you can put it into play.

Funds

The Defined Risk Strategy applied to different asset classes.

The DRS is also available in mutual funds, designed to give investors a risk managed approach to asset allocation. The goal: to achieve positive returns while minimizing the downside risk of the equity markets. The Fund’s investment strategy is grounded in a proprietary process that has been developed and refined since 1997. Key elements of the Fund’s strategy include:

  • No reliance on market timing or stock selection
  • Aiming to protect client assets during market downturns
  • Diversifying with allocations designed to complement each other across a range of market conditions.

To learn more: 

Visit SwanDefinedRiskFunds.com

Separately Managed Accounts

Creating wealth by reducing losses.

We created the Defined Risk Strategy and began applying it to Separately Managed Accounts (SMA) in 1997 with the goal of providing an investment solution offering the possibility for income and downside protection. It has consistently outperformed the S&P 500 over full market cycles since inception.

Our SMA includes:

  • Equally weighted ETFs representing the sectors of the S&P 500
  • Put options to hedge long equity positions
  • Income-generating options strategies

The Swan SMA is available for advisors to use with their clients at TD Ameritrade. TDA has invested in its technology to allow options managers such as Swan to offer SMA accounts to retail investors.

Swan’s unique SMA offering reflects our long-term commitment to provide sophisticated options-based strategies to the investing public through advisory relationships. A minimum commitment is required by each advisor to use the SMA structure.

Overlay

Stabilize returns and minimize taxes.

The Swan DRS Overlay applies our hedge and option income components over other managers’ portfolios, such as those with low cost basis or concentrated stock positions. Overlaying these types of portfolios with protection and income features can help clients smooth out returns and protect against extreme drawdowns, without incurring the taxes that would be triggered by liquidating securities. The Overlay program is ideal for executive stock programs that are restricted from liquidation or from full investment in Swan’s SMA program. The overlay has a few differences from our traditional DRS process, including:

  • Investors may use their own underlying equity portfolios
  • Customized hedging and income strategies are available

Collective Investment Trust – CIT

Grow and protect wealth in retirement plans.

The Swan Defined Risk Collective Investment Trust series is co-managed in association with Gordon Asset Management, LLC. Gordon is an independent registered investment advisor based in Raleigh-Durham, NC, which has a specialization in fiduciary services for corporate retirement plans. Alta Trust is a South Dakota chartered Trust company that acts as the Trustee of this Collective Investment Fund. There are five Swan Defined Risk CIT funds.

  • Defined Risk Income
  • Defined Risk Conservative
  • Defined Risk Moderate
  • Defined Risk Moderate Growth
  • Defined Risk Aggressive Growth

The CITs are currently available on numerous retirement platforms as well as made available through individual company employee benefit/retirement plans.
For general inquiries, please contact Alta Trust at: 866-516-4015;or visit their web page at www.trustalta.com/swan.
For CIT investment and participation related questions, please contact Gordon Asset Management at:(866) 216-1920, or visit their web page at www.wealthQB.com.

Swan Re

Reinsurance that offers leveraged returns.

Swan Re combines our DRS with a low-risk, low-cost reinsurance company structure. Swan’s expertise in the insurance industry and market leading risk/return characteristics of the DRS make a perfect fit for leveraged returns through a reinsurance product.

The launch of this product follows a proven format demonstrated by Greenlight Re, Third Point Re and Berkshire Hathaway, all of which direct reinsurance returns to investments rather than underwriting income. For the investor, Swan Re offers the possibility of earning a multiple of DRS’ historic returns through investment of premium float (premiums yet to be paid out as claims).

Swan Re will insure low-risk (low severity, high frequency) types of business that are contractually capped and often are very predictable in their payout patterns. Underwriter expenses should be much lower than for a traditional reinsurer.

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