SANTA MONICA, Calif.--(BUSINESS WIRE)--Sierra Mutual Funds, Inc., 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.
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 include 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 help retirees and other 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
Underlying Funds may invest in foreign emerging market countries that may have relatively unstable governments, weaker economies, and less-developed legal systems, which do not protect investors. In general, the price of a fixed income security falls when interest rates rise. Any strategy that includes inverse securities could cause the Fund to suffer significant losses. 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 legislature 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.