Seeking income and capital appreciation regardless of Fed policy

DURANGO, CO / ACCESSWIRE / January 30, 2024 / Swan Global Investments and Index Provider O'Shares Investments join forces to launch the Swan Enhanced Dividend Income Strategy to provide investors with a distinct and active approach seeking regular income and capital appreciation.

Swan Global Investments combines its decades of experience in managing options strategies with O'Shares' leadership in index strategy and development to create the Swan Enhanced Dividend Income strategy.

The Swan Enhanced Dividend Income Strategy focuses on total return, seeking both sustainable income and capital appreciation, via actively-managed covered call-writing on a quality dividend growth stock portfolio. This unique approach combines Swan's decades of options management expertise alongside O'Shares' experience in creating rules-based, data-driven indexes.

"Our distinct ‘active-active' strategy offers investors a compelling ‘dual alpha' enhanced income solution," said Randy Swan, Founder and Lead Portfolio Manager of Swan Global Investments.

Building on decades of stock selection and success in index strategy development, O'Shares Investments developed the O'Shares Focused Quality Dividend Index (the Index) as the underlying of this strategy. The Index will be at least 80% invested in approximately 50 dividend-paying common stocks of large-cap and mid-cap U.S. companies exhibiting Quality and Growth characteristics as determined by O'Shares Investments. O'Shares Investments research identified important relationships between stock performance coupled with high return-on-assets (ROA), significant dividend growth, and strong balance sheets.

"Our team uses substantial research to identify important financial measures of quality used in our rules-based indexes that include profitability, cash earnings, and strong balance sheets," said Kevin O'Leary, Chairman of O'Shares Investments.

The strategy seeks to augment its total return by writing call options on its stock holdings. Covered call writing is a well-known way to monetize a stock's growth potential. Bringing over 26 years of options expertise to the strategy, Swan Global Investments has developed a proprietary options trading methodology that seeks to add alpha. The active management approach selectively writes options when conditions are favorable, avoids writing options when prospects are poor, adjusts positions as market conditions change, and actively takes profits to drive total return.

"This approach provides investors with an alternative to passively-managed equity income strategies, which may be unable to adapt to market conditions, unduly cap upside potential, and/or erode an investor's capital base over time," said Chris Hausman, CMT®, Portfolio Manager and Managing Director-Risk.

The strategy is available in a separately managed account format and other investment vehicles are being explored.

For more information, advisors or investors should contact Swan Global Investments at sales@swanglobalinvestments.com or 972-382-8901 (ext. 1).

About Swan Global Investments

Swan Global Investments is a leader in hedged equity and options-based strategies, providing goals-based investment solutions, which include both passive and active hedged equity strategies, available across a range of asset classes and investment structures, including ETFs, mutual funds, separately managed accounts, and custom portfolio overlays. For more information, click here.

About O'Shares Investments

O'Shares Investments is an independent index provider of innovative, rules-based investment solutions for long-term wealth management. O'Shares Investments solutions include custom index construction for core strategies such as broad market, growth, value, and income, as well as sector and thematic investment solutions. For more information, click here.

035-SGI-012624

Contact Information

David Lovell
Managing Director - Head of Marketing
david.lovell@swanglobalinvestments.com
970-382-8901 ext 206

Related Files

Brochure_Enhanced_Dividend_Income.pdf

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SOURCE: Swan Global Investments

View the original press release on newswire.com.