Helping investors grow and protect wealth since 1997.
The DRS was launched in 1997 to provide investors with a better way to invest over full-market cycles—generate consistent returns and protect irreplaceable capital.
So how’d we do?
The Defined Risk Strategy is available in various structures and across major asset classes.
Across the four major asset classes shown above, our strategy has met or exceeded our Target Return Band over 98% of the time.
Source: Swan Global Investments and Zephyr StyleADVISOR. Data based on historic returns of a 60/40 blended composite and the Swan DRS Select Composite net of fees, from 7/1997 to 12/31/2018, and assume no portfolio withdrawals. The 60/40 blended composite, weighted 60% in the S&P 500 Index, which consists of approximately 500 large cap stocks, and 40% in the Barclays US Aggregate Bond Index. The 60/40 is rebalanced monthly. The Barclays US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency). Results in the table are the best, worst, and average annualized returns, based on month-end returns, for every rolling period listed within the overall time frame of July 1st, 1997 to December 31st, 2018. Prior performance is not a guarantee of future results and there can be no assurance, and investors should not assume, that future performance will be comparable to past performance.
The Defined Risk Strategy was launched in July of 1997.
So we began there, looking at rolling returns of 1, 2, 3, 4, 5, 6, 7 10, and 15-year periods. Then we moved to August 1997, and looked at those same rolling return periods.
The result: a table that shows the best, worst, and average returns investors would have experienced over those given holding periods, regardless of which month they began investing.
By reducing volatility and avoiding major losses, the DRS has a dramatic impact on rolling returns (experiences of your clients) through market cycles.
The takeaway—the longer investors held the DRS, the better their overall returns on a relative and risk-adjusted basis.
The success of our Defined Risk Strategy prompted us to apply it across multiple products and assets, providing our clients with additional opportunities to use this time-tested approach.