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Swan Global Investments Announces Fee Reduction Across Two Classes of the “Defined Risk Collective Investment Funds”

February 12, 2020 GMT

DURANGO, Colo.--(BUSINESS WIRE)--Feb 12, 2020--

Swan Global Investments (“Swan”), a leading provider of hedged equity solutions and mutual fund products for more than two decades, announced today a reduction in fees for Class 1 and Class 2 of the CITs within the Swan Defined Risk Collective Investment Trust, effective February 1, 2020.

For over 20 years, Swan has remained committed to serving the best interests of long-term investors. As an extension of that commitment, Swan, Gordon Asset Management and Alta Trust have determined to reduce fees for the Swan Defined Risk CITs, the hedged, risk-managed, and globally diversified suite of CITs that are packaged for retirement plans and may be suitable as a qualified default investment alternative (“QDIA”).

The net management and trustee fee reductions are 47 BPS for Class 1 and 32 BPS Class 2 1. That is approximately 49% savings and 45% savings in trustee and management fees in Class 1 and Class 2 respectively.

This reduction in expenses, coupled with the goals-based execution of the Swan investment discipline, can provide meaningful value for investors going forward in a redefined investment landscape.

As part of Swan’s proprietary Defined Risk Strategy (“DRS”), which is a goals-based, hedged equity approach uniquely designed to serve the best interest of the average investor, the Defined Risk CITs are among the first of their kind, engineered to help advisors and fiduciaries address behavioral finance issues and plan participant loss aversion that are well documented, but often unaddressed. The DRS investment approach, behind the Swan Defined Risk Collective Investment Trust strategies, actively seeks to mitigate downside risk and create a gentler investor experience when markets are in turmoil.

“For over 20 years, investors and advisors have long-trusted Swan Global Investments’ goals-based strategy as a source of potential protection in market downturns,” said Randy Swan, Founder and Lead Portfolio Manager of Swan. “As a firm committed to our value proposition of redefining investing by remaining always invested and always hedged, we’re constantly looking for new ways to help investors achieve their long-term goals in preserving irreplaceable capital.”

In addition to seeking to smooth investor emotions, the Swan Defined Risk CITs also seek to smooth returns over market cycles. Consistency of rolling returns helps to address timing risk associated with different enrollment and retirement dates, as well as limiting “statement shock,” encouraging participants to remain invested and on track to meet their goals.

Alta Trust Company (“Alta”) is the trustee of the Swan Defined Risk Collective Investment Trust and a leader in providing quality investment offerings to the retirement plan marketplace. Adam Ponder, Executive Vice President of Alta, commented, “We have been pleased to offer the Swan Defined Risk CITs for the last several years and are excited to be able to offer a solution to retirement plans with downside protection at a very reasonable cost.”

Gordon Asset Management, LLC (“Gordon”) is a co-fiduciary of the Swan CITs. Joseph Gordon, CPFA, CFP ®, CIMA ®, AIFA ®, in his capacity as the 3(38) Fiduciary for Swan CITs and Managing Partner of Gordon commented on the matter: “Lowering fees in the highly competitive QDIA and target date fund environment is not only great news for investors, but also necessary for plan committee engagement.”

Swan is a thought leader in the asset management space and participates in speaking engagements at numerous retirement events and conferences. Joseph Gordon recently spoke at the Investment and Wealth Institute’s Retirement Management Advisor Forum on December 10, 2019.

More fee information:

Class 1
Effective 2/1/2020 the following fees will be reduced as follows:

Fund Name

Prior Trustee/Manager Fees

Current Trustee/Manager Fees

Fee Reductions

SWAN Defined Risk Income

.95%

.48%

.47%

SWAN Defined Risk Conservative

.95%

.48%

.47%

SWAN Defined Risk Moderate

.95%

.48%

.47%

SWAN Defined Risk Moderate Growth

.95%

.48%

.47%

SWAN Defined Risk Aggressive Growth

.95%

.48%

.47%

Class 2
Effective 2/1/2020 the following fees will be reduced as follows:

Fund Name

Prior Trustee/Manager Fees

Current Trustee/Manager Fees

Fee Reductions

SWAN Defined Risk Income

.70%

.38%

.32%

SWAN Defined Risk Conservative

.70%

.38%

.32%

SWAN Defined Risk Moderate

.70%

.38%

.32%

SWAN Defined Risk Moderate Growth

.70%

.38%

.32%

SWAN Defined Risk Aggressive Growth

.70%

.38%

.32%

About Swan

Founded in 1997, Swan Global Investments is a leading provider of hedged equity and option overlay strategies that offers time-tested investment solutions that seek long-term growth of capital and consistent rolling returns, by preserving irreplaceable capital from catastrophic loss.

Important Risk Information

Past performance is no guarantee of future results. A Fund’s strategy, like most investment strategies, involves risks, including possible loss of principal. Before investing in any Fund, please consider the Fund’s investment objective, strategies, risks, and expenses. Views expressed herein are not necessarily the views of Alta Trust. Be sure to consult with your financial, legal and professional tax advisers prior to investment in any Fund.

About Swan Global Investments: Swan Global Investments is an asset management firm with $3.101 billion in assets under management (as of December 3, 2019). It was formed in 1997 to offer a proprietary strategy designed to hedge against large stock market declines. The Defined Risk Strategy is an actively managed, hedged equity, rules-based process. It is available in mutual funds, separately managed accounts, and as an overlay to customize existing equity portfolios. Through a combination of techniques that seek to hedge the market and generate market-neutral income, the goal of the DRS is to minimize large losses in bear markets and outperform the S&P 500 over a full market cycle. Swan’s expanding portfolio of investment offerings is managed out of Durango, CO with affiliated offices in Tampa and Puerto Rico. In addition to the five funds in the Swan Defined Risk CITs, Swan offers its Defined Risk Strategy through separate accounts and mutual funds. For more information, please visit http://swanglobalinvestments.com. For Investment related questions please contact Swan Global Investments at: (970) 382-8901.

About Gordon Asset Management: Gordon Asset Management, LLC is an independent investment advisory firm located in Durham NC. A subadvisor on the Swan Defined Risk collective investment funds, Gordon Asset Management, LLC is considered a national thought leader on retirement plan management and fiduciary governance. For additional information, please contact Gordon Asset Management, LLC at www.WealthQB.com.

About Alta Trust Company: Alta Trust is a South Dakota chartered trust company that acts as the trustee of this CIT. Collective investment trusts are bank maintained and not registered with the Securities and Exchange Commission. The Declaration of Trust for the CIT describes the procedures for admission to and withdrawal from the CIT. The Declaration of Trust and the Fund’s Employee Benefit Summary should be read in conjunction with this press release. A copy of these documents may be obtained by contacting Alta Trust at info@trustalta.com.

Before investing in any collective investment trust, please consider the trust’s investment objective, strategies, risks, and expenses. Be sure to consult with your financial, legal and professional tax advisors prior to investment in any collective investment trust. Performance is expressed in USD. Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. All investments involve risk, including potential loss of principal. There is no guarantee that the CIT will achieve its objective.

Fund Restriction/Limitations: This CIT may only accept assets of defined contribution plans that are part of a pension, profit sharing, stock bonus or other employee benefit plan of an employer for the exclusive benefit of employees or their beneficiaries and is (i) exempt from federal income taxes under Section 501 (a) of the code, by reason of qualifying under Section 401(a) or 414(d) of the code or (ii) is part of an eligible deferred compensation plan maintained by a state or local governmental unit under Section 457(b) of the Code (“Section 457 Plan”), which is either exempt from or not subject to income taxation. NOT FDIC insured. MAY lose value. NO bank guarantee.

Detailed CIT fees and expenses can be found in the Swan Defined Risk Collective Investment Trust Employee Benefits Plans Fund Summary also known as the Investor Disclosure.

1 Class 1 is available to all Participating Trusts. Class 2 is only available to Participating Trusts where Gordon Asset Management is the plan fiduciary.

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CONTACT: Profile on Behalf of Swan Global Investments

Charlotte Kiaie

ckiaie@profileadvisors.com

Phone 347-774-4468

KEYWORD: UNITED STATES NORTH AMERICA COLORADO

INDUSTRY KEYWORD: CONSULTING PROFESSIONAL SERVICES FINANCE

SOURCE: Swan Global Investments

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PUB: 02/12/2020 08:00 AM/DISC: 02/12/2020 08:01 AM

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