NEWS & MEDIA
Stay current on Sierra Mutual Funds news, industry happenings, upcoming events, and much more.
Sierra Mutual Funds Introduces Tactical Bond Fund
New Fund Applies Sierra’s 32 Years of Experience and Distinctive Disciplines to Contrasting Bond Categories
Santa Monica, CA (October 15, 2019) – an emerging manager and a pioneer in tactical, low volatility, conservative investing, today announced the launch of the Sierra Tactical Bond Fund, a new bond mutual fund that will utilize Sierra’s distinctive tactical investment approach to pursue total return and limiting downside risk.
The fund will typically hold a diverse selection of actively-managed high yield corporate bond mutual funds (and occasionally high yield corporate bond ETFs), but will tactically shift into Treasury bond funds relatively early in each significant downturn in the high yield corporate bond market.
“Sierra has 32 years of experience with the high yield corporate bond asset class and managing downside risk, and we are pleased to now be able to offer our proprietary approach to tactically positioning this important asset class and Treasury bonds in a mutual fund format,” said David C. Wright, Sierra principal and co-founder. “The Sierra Tactical Bond Fund will look to hold productive high yield corporate bond funds during uptrends, while utilizing a trailing-stop discipline that will generate a Sell signal when each holding enters a significant downtrend, substantially limiting downside risk.”
The Sierra Tactical Bond Fund will be managed by a team led by Mr. Wright and Kenneth L Sleeper, MBA, PhD, the co-founders of Sierra, and Terri Spath, MBA, CFA, Chief Investment Officer.
Sierra has long been regarded a thought leader in tactical management with an emphasis on risk mitigation. The term “absolute return” is a relatively recent one, but starting in the mid-1980s, Sierra independently developed an absolute return philosophy and several strategies to apply that.
To implement that philosophy in the new Sierra fund, each holding will be monitored daily, and a proprietary stop-loss discipline to shift into Treasuries will be executed during high yield market declines, with the goal of limiting drawdowns in the fund. The fund may temporarily be 100% in cash on occasions when both asset classes are in declines.
Four share classes of the fund (symbols STBKX, STBDX, STBJX and STBNX) are available to retail investors. All share classes have a minimum initial investment of $10,000.
For more information on the Sierra mutual funds, please visit sierramutualfunds.com.FUND PROSPECTUS
About The Sierra Companies
The Sierra Group of Companies ("Sierra") comprises Sierra Investment Management, Inc., Ocean Park Asset Management, Inc., and Wright Fund Management, LLC, which manages the Sierra Mutual Funds, which includes the Sierra Tactical All Asset Fund, Sierra Tactical Core Income Fund and Sierra Tactical Municipal Fund.
Since 1987 it has been Sierra’s goal to helping retirees and other conservative investors preserve and grow their wealth. Through the years, Sierra has fine-tuned an investment approach specifically designed to limit downside risk and to provide returns that conservative investors would deem satisfying, by reflecting Sierra’s current market and manager views. Using decades of strategic research and proven risk management disciplines, Sierra strives to help its clients meet their specific investment goals.
As of September 30, 2019, Sierra manages or advises close to $4.0 billion in assets for clients.
Past performance does not guarantee future results and there is no assurance that any investment strategy will achieve its investment objective. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Sierra Mutual Funds. This and other information about the funds is contained in the prospectuses and should be read carefully before investing. The prospectus can be obtained on our website sierramutualfunds.com or by calling toll free 1-800-729-1467. The Sierra Mutual Funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC.
Neither Sierra Investment Management, Inc., Ocean Park Asset Management, Inc. nor Wright Fund Management LLC are affiliated with Northern Lights Distributors, LLC
# # #
Tyler Bradford, (212) 207-9454
Important Risk Information
The Sierra Tactical Bond Fund has fixed income risk as a rise in interest rates causes a decline in the value of the underlying funds owned by the fund. Other risk factors impacting fixed income securities include credit risk, maturity risk, market risk, extension risk, illiquid security risks, foreign securities risk and prepayment risk. These risks could affect the value of a particular investment by the Fund possibly causing the Fund’s share price and total return to be reduced and fluctuate more than other types of investments. In addition, some of the underlying funds in which the Fund will from time to time invest in are sometimes referred to as high-yield or junk bonds. Because the Fund will seldom hold an underlying fund for 12 months or more, investors who own the Fund in taxable accounts will be subject to federal income tax at short-term rates.