Defied Risk Global Hedged Equity Portfolios

Access Growth Opportunities While Hedging Market Risk and Volatility

Our Global Hedged Equity (GHE) Models enable investors to build globally diversified portfolios to pursue growth opportunities, while remaining always hedged against market risk.

 

Our GHE Models include allocations to major global equity markets, using our Defined Risk approach:

  • US Large Cap (S&P 500)
  • US Small Cap (Russell 2000)
  • Foreign Developed Markets (MSCI EAFE)
  • Emerging Markets (MSCI EAFE)

 

Redefine Your Global Portfolio Pie

Equity markets with high growth potential can be volatile, so they typically represent the smallest slice of traditional portfolios.

 

What would your pie look like, if you could better mitigate risk in those markets?

Strengthening Diversification

Global diversification allows investors to capture growth wherever it happens.

 

Yet global markets often fall in unison during times of crises, eroding protection investors assume that diversification provides.

It's Time to Break with Tradition

Traditional global portfolios are stuck in the past:

  1. Do not allocate enough to markets with highest growth potential.
  2. Rely on diversification, when market risk cannot be diversified away.

 

Break with tradition.

 

Capture opportunities while mitigating risks.

Global Diversification - Redefined

        Global Hedged + Hedge

•Invest in global equity markets for growth.

•Hedge the equity against major market risks and volatility.

Portfolio Construction - Redefined

Focus on what you can control—risk, cost, time, behavior—instead of what you can’t control—return.

 

In a redefined world, with low-to-negative yields, how will you allocate to achieve real, after-tax returns necessary to achieve long-term goals?

 

The Swan Defined Risk Strategy (DRS) is a time-tested, hedged equity approach that is always invested in equity for growth, always hedged to mitigate downside risk.

We applied the DRS to construct globally diversified, hedged equity model portfolios using four popular equity asset classes.

Domestic Equity

U.S. Large Cap

(S&P 500)

U.S. Small Cap

(Russell 2000)

International Equity

Foreign Developed

(MSCI EAFE)

Emerging Markets

(MSCI EM)

Three Risk-Based, Global Hedged Equity Models

Each GHE model allocation provides our DRS approach to global equity investing, the benefits of diversification are coupled with the mitigation of market risk.

Defined Risk Global Portfolio - Growth
Defined Risk Global Portfolio - Moderate
Defined Risk Global Portfolio - Conservative

More About the Defined Risk Strategy

Defining Separately Managed Accounts

A Separately Managed Account is a portfolio of assets under the management of a professional investment firm. The vast majority of such investments firms are called registered investment advisors, which are regulated by of the U.S. Securities and Exchange Commission (SEC) under the Investment Advisors Act of 1940. One or more portfolio managers are responsible for day-to-day investment decisions, supported by a team of analysts, operations and administrative staff. Separately Managed Accounts differ from mutual funds in that each portfolio is unique to a single account, in which the manager has discretion to make investment decisions for each account.