The Dual Dilemma

The risks to capital in equities and fixed income have rarely been higher with rates so low and stock valuations so high. Consistency of returns, portfolio resiliency and sustainable income are of premium concern, yet solutions seem scarce.

The State of Fixed Income Markets
  • Bond bull market appears out of gas
  • Traditional role of bonds is in peril
  • Low Yields, High Duration Risk
  • Inflation concerns rising
The State of Equity Markets
  • U.S. equity markets near all-time highs
  • Valuations appear rich
  • Disconnected from the economy?
  • Long-term return expectations are muted

Striking the balance between risk asset exposure to generate returns and providing sustainable income is critical to funding the mission or meeting obligations over full market cycles.


A tepid post-COVID economic recovery, coupled with historically low yields and inflation concerns, has many institutions parring down return expectations.


Meanwhile, many institutions are facing rising costs, so the margin for error is diminishing.

Addressing Market Risk and Seeking Consistent Returns

The Swan Defined Risk Strategy (DRS), launched in 1997, is a time-tested, hedged-equity approach with a track record of generating consistent rolling returns while minimizing losses during large equity market declines.