DURANGO, Colo.--(BUSINESS WIRE)--Swan Global Investments (“Swan”), a specialized asset management firm with a 24+ year track record in hedged equity solutions, today announced that the Swan Defined Risk Growth Fund (Ticker Symbols: Class A: SDAAX, Class C: SDACX, Class I: SDAIX) received a 5-Star Morningstar Rating™ for the overall and 3-year period ending 12-31-2021 out of 96 funds in the options trading category based on risk adjusted returns. Also, the Swan Defined Risk Growth Fund ranked #1 for risk-adjusted returns in Morningstar's Options-Trading category, which is comprised of 190 funds from 12/31/2020 - 12/31/2021.
“After recently hitting the milestone of our three-year track record, achieving Morningstar’s highest five-star rating within the highly competitive options trading category is a true honor,” said Randy Swan, Founder and Lead Portfolio Manager of Swan Global Investments. “Our proven approach of passively investing in the S&P while actively managing hedging strategies has been increasingly attractive to the market during these times of uncertainty, and we are proud to provide quality returns to investors and financial advisors.”
“The Defined Risk Growth Fund has allowed investors to manage market volatility in a strategic, hedged way, and we are pleased that our approach has received this rating,” said Chris Hausman, Portfolio Manager at Swan Global Investments. “There are a lot of different strategies within the category, but we believe this fund offers a distinct opportunity for attractive upside market capture while remaining hedged against market risk.”
Swan’s Defined Risk Growth Fund has consistently outperformed category benchmarks, yielding 22.93% returns in 2021 and 19.19% three-year annualized returns as of December 31, 2021. The fund seeks capital appreciation and risk-adjusted returns over a full market cycle with potentially less downside risk and volatility than the S&P 500 Index. Designed for investors seeking more upside capture out of their hedged equity solution, the fund is built upon Swan’s innovative and time-tested “Always Invested, Always Hedged” process launched in 1997—a distinct blend of passive investing and active risk management.
To learn more about the Swan Defined Risk Growth Fund, visit https://swandefinedriskfunds.com/defined-risk-growth-fund/.
About Swan
Founded in 1997, Swan Global Investments is a leading asset management firm that offers time-tested hedged equity and options-based solutions that seek consistent long-term returns over time, by prioritizing the pursuit of preserving investors’ irreplaceable capital. There is no guarantee of performance, nor that the Fund will meet its objective or perform as other investment products Swan Global Investments manages.
Swan Global Investments is an SEC registered Investment Advisor that specializes in managing money using the proprietary Defined Risk Strategy (DRS). Please note that registration of the Advisor does not imply a certain level of skill or training. All investments involve the risk of potential investment losses as well as the potential for investment gains. Prior performance is no guarantee of future results and there can be no assurance that future performance will be comparable to past performance. This communication is informational only and is not a solicitation or investment advice. Further information may be obtained by contacting the company directly at 970-382-8901 or swanglobalinvestments.com.
+ Morningstar Disclosure: The Swan Defined Risk Growth Fund ranked #1 for risk-adjusted returns in Morningstar’s Options-Trading category, comprised of 105 funds, from 12/31/2020 - 12/32/2021, and 105 funds since inception to 12/31/2021. Morningstar adjusts for risk as follows: A “risk penalty” is subtracted from each investment’s total return, based on the variation in its month-to-month return during the rating period, with an emphasis on downward variation. The greater the variation, the larger the penalty. If two funds have the exact same return, the one with more variation in its return is given the larger risk penalty. For more about Morningstar’s risk-adjusted return metric, click here.
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The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
Important Risk Information: Swan Global Investments is an SEC registered Investment Advisor that specializes in managing money using the proprietary Defined Risk Strategy (DRS). Please note that registration of the Advisor does not imply a certain level of skill or training. All investments involve the risk of potential investment losses as well as the potential for investment gains. Prior performance is no guarantee of future results and there can be no assurance that future performance will be comparable to past performance. This communication is informational only and is not a solicitation or investment advice. Further information may be obtained by contacting the company directly at 970-382-8901 or www.swanglobalinvestments.com. Performance shown is historical and does not guarantee future results. Current performance may be lower or higher. Because share price, principal value, and return will vary, you may have a gain or loss when you sell fund shares.
Performance assumes the reinvestment of dividends and capital gains. “Without sales charge” performance does not reflect the current maximum sales charge. Had the sales charge been included, the Fund’s returns would have been lower. Class I shares have no sales charge and may be purchased by specified classes of investors. For performance information current to the most recent month end, please call (877) 896-2590. Maximum sales charge for Class A Shares is 5.50%. Fund's investment advisor has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until October 31, 2022 (exclusive of any taxes, interest, brokerage commissions, dividend expense on securities sold short, acquired fund fees and expenses, or extraordinary expenses such as litigation or reorganization costs). The Fund's total gross annual fund operating expenses are 1.68% for Class A; 2.43% for Class C; 1.43% for Class I. After the fee waiver these expenses are 1.65% for Class A, 2.40% for Class C, and 1.40% for Class I shares, respectively.
All investments involve the risk of potential investment losses as well as the potential for investment gains. Prior performance is no guarantee of future results and there can be no assurance that future performance will be comparable to past performance. Investments in mutual funds involve risk including possible loss of principal. There is no guarantee that any investment strategy will achieve its objectives, generate profits, or avoid losses.
Investors should carefully consider the investment objective, risks, charges and expenses of the Swan Defined Risk Funds. 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 and Swan Capital Management, LLC & Swan Global Investments, LLC are not affiliated. 9055-NLD-01/20/2022
