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Collective Investment Funds 2018-07-09T17:15:12+00:00

Swan Defined Risk

Collective Investment Funds (CIFs)

For finan­cial pro­fes­sion­al use only.

The State of the Defined Contribution Marketplace

It’s all about Out­comes, right?

Advi­sors and par­tic­i­pants need a solu­tion focused on par­tic­i­pant out­comes that address­es risk and smooths returns to help keep par­tic­i­pants on-track.

But, is that what the mar­ket offers? 

The indus­try seems to be prod­uct-ori­ent­ed, focused on design­ing and mar­ket­ing prod­ucts that:

  • Are ‘easy to sell’,
  • Fit’ a box or trend,

NOT focused on what’s best for the investor.  Read more about the state of the retire­ment mar­ket­place.

Stop the Fiduciary Insanity

Let’s look at the typ­i­cal asset allo­ca­tion of Tar­get Date Funds (TDF) in 2007 vs 2017.  The port­fo­lio con­struc­tion for the aver­age TDF is near­ly the same in 2017 as it was in 2007, just before the 2008 Finan­cial Crises. So the indus­try is doing near­ly the same thing, but should investors expect a dif­fer­ent result?

Solving Fiduciary Insanity - Swan Global Investments

Source: Zephyr StyleAd­vi­sor, Morn­ingstar.  The charts above show Morn­ingstar cat­e­go­ry aver­ages for Tar­get Date Fund Series 2010 ver­sus the Tar­get Date Fund Series 2020.

We believe investors deserve better.  

The time has come to put the Par­tic­i­pant and the Advi­sor back in the driver’s seat towards achiev­ing out­comes.

An Outcome-Oriented Solution

Collective Investment Funds — Client-Centered & Outcome-Oriented

A client-cen­tered, risk-man­aged approach to invest­ing is an ide­al fit for retire­ment plans. Our Defined Risk Strat­e­gy is a full mar­ket cycle strat­e­gy, designed to smooth returns and pro­vide down­side pro­tec­tion.

There are five Swan Defined Risk Collective Funds.

  1. Defined Risk Income
  2. Defined Risk Con­ser­v­a­tive
  3. Defined Risk Mod­er­ate
  4. Defined Risk Mod­er­ate Growth
  5. Defined Risk Aggres­sive Growth

Swan Defined Risk Collective Investment Funds | Risk Profles

WHY and HOW — Learn more about the Swan Defined Risk Col­lec­tive Funds.

    

The Swan Defined Risk Col­lec­tive Invest­ment Funds series is co-man­aged in asso­ci­a­tion with Gor­don Asset Man­age­ment, LLC. and Alta Trust Com­pa­ny, Inc.

Reduce Downside Risk with a Time-Tested Approach

Seeking Consistent Outcomes through Smoothing of Return - Swan Global Investment

We devel­oped our Defined Risk Strat­e­gy in 1997 to offer investors a dis­tinct, inno­v­a­tive tool for min­i­miz­ing mar­ket risk.

The strat­e­gy is designed to min­i­mize the impacts of large mar­ket declines (bear mar­kets), while cap­tur­ing much of the market’s appre­ci­a­tion over time.

Smooth­ing of returns and avoid­ing major loss­es can help reduce ‘state­ment shock’ and emo­tion­al reac­tions.

Rolling return peri­ods demon­strate a strategy’s abil­i­ty to deliv­er on its objec­tive.

These graphs show the rolling returns, using nine 10-year invest­ment peri­ods from Jan­u­ary 1998 to Decem­ber 2015, for the S&P 500 and the Swan Defined Risk Strat­e­gy (per­for­mance based on the Swan DRS Select Com­pos­ite net of fees). See here for more infor­ma­tion and dis­clo­sures.

Protect Plan Participants from ‘Statement Shock’ by Minimizing Losses

Large loss­es cre­ate state­ment shock, often result­ing in emo­tion­al reac­tions and poor deci­sions.

  • Min­i­miz­ing the impact of large loss­es helps keep par­tic­i­pants on track to desired out­comes.

Large loss­es are often fol­lowed by long recov­er­ies, reduc­ing port­fo­lio growth.

  • By reduc­ing draw­down and recov­ery time, par­tic­i­pants ben­e­fit more from com­pound­ing.

The Investment Process behind the Defined Risk Collective Investment Funds:

  • Remains invest­ed at all times using index-based ETFs;
  • Seeks pro­tec­tion for invest­ments with puts;
  • Seeks to gen­er­ate mar­ket-neu­tral income through the use of options;
  • Fol­lows a rules-based process that elim­i­nates the impact of emo­tions on invest­ment deci­sions.

Become an Outcome-Oriented Advisor

Stop the fidu­cia­ry insan­i­ty. Focus on plan par­tic­i­pant out­comes, not prod­uct.

Uti­lize an invest­ment solu­tion that address­es risk direct­ly and the chal­lenges plan par­tic­i­pants face.

The Swan Defined Risk Col­lec­tive Invest­ment Funds (CIFs) are an ide­al invest­ment solu­tion for Out­come-Ori­ent­ed Advi­sors:

  • Address risk aver­sion and lim­it state­ment shock
  • Uti­lize a broad range of funds across var­i­ous risk tol­er­ances pro­vid­ing flex­i­bil­i­ty for a glide path
  • Access a unique Stair-Step QDIA, an auto­mat­ed, age-based glide path
  • Achieve align­ment between plan goals and par­tic­i­pants out­comes

The Swan Defined Risk CIFs are cur­rent­ly avail­able on numer­ous retire­ment plat­forms and indi­vid­ual com­pa­ny employ­ee benefit/retirement plans.

For gen­er­al CIF inquiries, please con­tact Alta Trust at: 866–516-4015; or vis­it their web page at www.trustalta.com/swan.

For CIF invest­ment and par­tic­i­pa­tion relat­ed ques­tions, please con­tact Gor­don Asset Man­age­ment at: (866) 216‑1920, or vis­it their web page at www.wealthQB.com.

Speak with Some­one About the Swan CITs

Alta Trust is a South Dako­ta char­tered trust com­pa­ny that acts as the trustee of the Swan Col­lec­tive Invest­ment Funds. Col­lec­tive invest­ment funds are bank main­tained and not reg­is­tered with the Secu­ri­ties and Exchange Com­mis­sion. Addi­tion­al infor­ma­tion about the funds may be obtained by con­tact­ing Swan Glob­al Invest­ments at 970.382.8901.