DISCLOSURES:

Swan Global Investments, LLC (“Swan”) is a 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. Further information may be obtained by contacting the company directly at 970-382-8901 or on this website. Swan Global Investments, LLC, Swan Global Management, LLC, Swan Capital Management, LLC, and Swan Wealth Advisors, LLC are affiliated entities. 

Definitions:

Options: An option is a contract that gives the buyer the right to either buy (in the case of a call option) or sell (in the case of a put option) an underlying asset at a pre-determined price by a specific date. Options are a powerful tool for creating a wide array of potential payoff profiles and may be used on a standalone basis or integrated into a broader portfolio strategy.

Expiry is the time until an option expires. In the context here, expiry is used to describe the length of time from when an option position is initiated to when it will expire.

NAV is the dollar value of a single share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding. Calculated at the end of each business day.

Market Price is the current price at which shares are bought and sold. Market returns are based upon the last trade price.

A call option is a financial contract that gives the buyer the right to buy an underlying asset at a specific price within a specific period.

A covered call is a strategy of selling call options on an investor’s long position in a stock or futures contract. It can generate income in the form of option premium, lower risk, and improve returns by selling the right to buy stock shares or the call options contracts at a predetermined price.

Out of the Money refers to an options contract where an option’s strike price, or the price at which the option contract can be exercised, is much lower or higher than the price of the underlying security, and therefore the option contract only contains extrinsic value.

Extrinsic value measures the difference between the market price of an option, called the premium, and its intrinsic value. Extrinsic value is also the portion of the worth that has been assigned to an option by factors other than the underlying asset’s price. The opposite of extrinsic value is intrinsic value, which is the inherent worth of an option.

At the Money refers to an options contract where an option’s strike price, or the price at which the option contract can be exercised, is identical to the price of the underlying security.

Near the Money refers to an options contract where an option’s strike price is close to the current market price of the corresponding underlying security.

Strike Price is the price at which an option contract can be exercised, either to buy or sell the underlying security.

Option premium is the total amount that an investor will pay for an option.

Duration reflects how much a bond’s value is expected to move when interest rates rise or fall, and is used as a tool to determine the change in a bond’s value in relation to interest rate movements.

Volatility is a statistical measurement of the degree of variability of the return of a security or market index.

Standard Deviation is a measure of the dispersion of a set of data from its mean. The more spread apart from the benchmark, the higher the deviation.

Beta is a measure of the volatility or dispersion of a security or a portfolio in comparison to the market as a whole.

Max drawdown measures the most significant percentage decline in the value of an investment or portfolio from its peak to its lowest point before a new peak is achieved.

The Cboe S&P 500 BuyWrite Index (BXM) is a benchmark index designed to track the performance of a hypothetical buy-write strategy on the S&P 500 Index®. A “Buy-Write” strategy is generally considered to be an investment strategy in which an investor buys a stock or a basket of stocks, and also writes (or sells) covered call options that correspond to the stock or basket of stocks. The Standard & Poor’s (S&P) 500 Total Return Index is an unmanaged, market-capitalization-weighted index of the 500 largest U.S. publicly traded companies by market value, and assumes any distributions are reinvested back into the index. Indexes are unmanaged, and one cannot invest directly in an index.

SCLZ Disclosures:

Distributions are made monthly and will comprise of dividends, options premium, capital gains, and return of capital to varying degrees over time. There is no guarantee the Fund will pay a distribution. Distributions may exceed the Funds’ income and gains for the Funds’ taxable year. Distributions in excess of the Funds’ current and accumulated earnings and profits will be treated as a return of capital, which may have adverse tax consequences upon disposition or sale of Fund shares. 

For more information about distributions and other important information about the Fund, please click here.

Investors should carefully consider the investment objective, risks, charges and expenses of the Swan Enhanced Dividend Income Fund. This and other information is contained in the prospectus and should be read carefully before investing. For a copy of the prospectus, please call 877-383-7259.

The fund’s investment objective is to seek income and modest capital appreciation.

An investment in the fund involves risk, including possible loss of principal. There is no guarantee the Fund will meet its objective. 

The fund will use put and call options, which are referred to as “derivative” instruments since their values are based on, or derived from, an underlying reference asset, such as an index. Derivatives can be volatile, and a small investment in a derivative can have a large impact on the performance of the Fund as derivatives can result in losses in excess of the amount invested. Options used by the Fund to reduce volatility and generate returns may not perform as intended. There can be no assurance that the Fund’s option strategy will be effective. It may expose the Fund to losses, e.g., option premiums, to which it would not have otherwise been exposed. Further, the option strategy may not fully protect the Fund against declines in the value of its portfolio securities. The prices of options may change rapidly over time and do not necessarily move in tandem with the price of the underlying securities. Selling call options reduces the Fund’s ability to profit from increases in the value of the Fund’s equity portfolio, and purchasing put options may result in the Fund’s loss of premiums paid in the event that the put options expire unexercised. To the extent that the Fund reduces its put option holdings relative to the number of call options sold by the Fund, the Fund’s ability to mitigate losses in the event of a market decline will be reduced. Diversification does not ensure a profit or guarantee against loss.

Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

The Fund is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Northern Lights Distributors, LLC and Swan Capital Management, LLC are not affiliated.  There is no guarantee the fund will meet its objective.                           

HEGD Disclosures:

The Cboe S&P 500 95-110 Collar Index SM (CLL) is based on a collar strategy. An option collar is designed to reduce the cost of hedging negative stock returns.  The CLL tracks the value of a portfolio that protects an investment in S&P 500 stocks with a long  5 % out-of-the money put option on the S&P 500 (SPX put). The premium of the put is partly defrayed by the premium collected on a short position in a 10% out-of-the-money SPX  call option (SPX call).  The CLL Index portfolio is rebalanced monthly after the expiration of SPX call and put, typically 11 am ET every third Friday. New SPX put and call options are then bought and sold, respectively.

The Standard & Poor’s (S&P) 500 Total Return Index is an unmanaged, market-capitalization-weighted index of the 500 largest U.S. publicly traded companies by market value, and assumes any distributions are reinvested back into the index. Indexes are unmanaged, and one cannot invest directly in an index.

Investors should carefully consider the investment objectives, risks, charges and expenses of Exchange Traded  Funds (ETFs) before investing. To obtain an ETF’s prospectus containing this and other important information,  please call (855) 772-8488, or visit etfs.swanglobalinvestments.com. Please read the prospectus carefully before you invest. An investment in the fund involves risk, including possible loss of principal. Past performance does not guarantee future results.

All investing involves risk, including possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

The fund’s investment objective is to seek long-term capital appreciation while mitigating overall market risk. 

There is no guarantee the Fund will meet its objective.

The Fund will use put and call options, which are referred to as “derivative” instruments since their values are based on, or derived from, an underlying reference asset, such as an index. Derivatives can be volatile, and a small investment in a derivative can have a large impact on the performance of the Fund as derivatives can result in losses in excess of the amount invested. Options used by the Fund to reduce volatility and generate returns may not perform as intended. There can be no assurance that the Fund’s option strategy will be effective. It may expose the Fund to losses, e.g., option premiums, to which it would not have otherwise been exposed. Further, the option strategy may not fully protect the Fund against declines in the value of its portfolio securities. The prices of options may change rapidly over time and do not necessarily move in tandem with the price of the underlying securities. Purchasing put options may result in the Fund’s loss of premiums paid in the event that the put options expire unexercised.

The Fund is distributed by Services, LLC member FINRA / SIPC. Foreside Fund Services, LLC and Swan Capital Management, LLC & Swan Global Investments, LLC are not Foreside Fund affiliated.