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Sierra Strategic Income Fund Marks Fifth Anniversary
Since inception, the fund has outperformed its Morningstar category
Santa Monica, CA (February 3, 2017) – Sierra Investment Management today announced that the Sierra Strategic Income Fund has reached its fifth anniversary. The fund is managed with two goals: to limit downside risk (or drawdowns) of the overall portfolio, and to provide satisfying risk-adjusted returns for clients.
"Sierra Strategic Income Fund has been a steady performer since its inception five years ago, having outperformed its Morningstar category by holding up well during declines and participating in rising markets, which has been Sierra's dual investment objective for 30 years," said Dave Wright, co-portfolio manager of the fund and Managing Director of Sierra Investment Management, Inc. "We believe that fixed income markets may be entering a period of turbulence, as interest rates and inflation appear poised to rise from their current low levels, but Sierra's flexible and defensive approach can help weather tough environments. Our clients and mutual fund shareholders are conservative investors--we manage the portion of their portfolio that can't tolerate big losses."
About Sierra Strategic Income Fund
The primary focus of the Fund is to preserve capital while producing total investment returns in excess of a broad, market-weighted bond index. This may be achieved by employing an unusually broad diversification across investment categories and also by preserving capital, thanks to a strict sell discipline and extensive diversification. The portfolio is spread across a wide variety of asset classes including government bonds, corporate credit, sovereign debt, and global stocks. The risk tolerance of any specific investment is subject to strict measures of historical volatility. Managers seek to outperform the Bloomberg Barclays U.S. Aggregate Bond Index.
The benchmark for the Sierra Strategic Income fund is the Bloomberg Barclays U.S. Aggregate Bond Index, which is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market.
The Sierra Strategic Income Fund invests in underlying funds that may invest in foreign emerging market countries that may have relatively unstable governments, weaker economics, and less-developed legal systems, which do not protect investors. In general, the price of a fixed income security falls when interest rates rise. Underlying fund investments in lower-quality bonds, known as high-yield or junk bonds, present greater risk than bonds of higher quality. Municipal securities are subject to the risk that legislative changes and economic developments may adversely affect the value of the Fund's investments. REIT risks include declines from deteriorating economic conditions, changes in property value, and defaults by borrower. Underlying funds that own small and mid-capitalization companies may be more vulnerable than larger, more established organizations to adverse business or economic developments. In some instances it may be less expensive for an investor to invest in the underlying funds directly.
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.
Since 1987 Sierra has been helping retirees and other conservative investors preserve and grow their wealth. Through the years, Sierra has fine-tuned an investment approach specifically designed to try to limit downside risk and to provide satisfying returns over a market cycle by reflecting Sierra’s current market and manager views. Using decades of strategic research and our proven risk management disciplines, Sierra strives to help its clients meet their specific investment goals.
As of December 31, 2016, Sierra manages or advises over $2.2 billion in assets for conservative clients.
Neither Sierra Investment Management, Inc., Ocean Park Asset Management, Inc. nor Wright Fund Management LLC are affiliated with Northern Lights Distributors, LLC.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $200 billion in assets under advisement and management as of September 30, 2016. The company has operations in 27 countries.
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