Sierra Municipal Bond Program

Sierra Municipal Bond Program Goals

The goals of the Sierra Municipal Bond Program are to produce satisfying long-term returns while limiting downside risk. Returns are created from interest income as well as increases in bond prices. The interest income on Municipal bonds is tax-free at the federal level, providing a particularly valuable benefit for clients in relatively high tax brackets. The strategy diversifies a client’s account among at least four (often up to ten) Municipal bond mutual funds that are expected to generate returns superior to a simple Municipal benchmark. The managers apply our proprietary risk-limiting disciplines (similar to trailing stops) to each holding to minimize losses in the overall portfolio. The Program will be fully invested when there are many “buy” signals and will, at times, be fully in cash when the universe of Municipal mutual funds are showing “sell” signals.

Sierra Municipal Bond Program

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Sierra California Municipal Bond Program

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The benchmark for the Sierra Municipal Bond Program and the Sierra California Municipal Bond Program 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.

It is not our goal to equal or exceed the stock market averages.