Investment Strategies to Grow and Protect Wealth

Sierra’s comprehensive investment programs are engineered to meet your overall investment goals. We pursue positive results through market cycles and are laser-focused on limiting downside risk. Our tactical investment disciplines were developed with the goal of limiting downside risk while producing satisfying long-term investment returns.

We construct portfolios based on each client’s specific investment objectives and long-term outlook. Explore the intricacies and results of our investment programs below:

Conservative Allocation Program
Moderate Allocation Program
California Municipal Bond Program
High Yield Corporate Bond Program
Municipal Bond Program
Strategic Income Program
Tactical Bond Program

*Although Sierra believes its risk-mitigating disciplines will continue to limit the impact of major market declines, no assurance can be given that these goals can be consistently achieved in the future.

Conservative Allocation Program

The Sierra Conservative Allocation Program has two investment objectives: to provide long-term total return and to limit volatility and downside risk. The Program’s multi-asset diversification strategy employs broad diversification across asset classes, markets, industries, and issuers. A passive “buy and hold” strategy is not employed. As part of an integrated risk-management discipline, the Program monitors underlying holdings daily and applies a trailing stop discipline to each holding (other than the affiliated funds, which employ the same methodology internally), based on a proprietary approach, to help limit the impact of any sustained decline in a given asset class or holding. The overall asset allocation of the Program is not fixed. It can and does change significantly over time, re-allocating the portfolio in response to trend changes in the U.S. and global economy and in various investment markets.

Moderate Allocation Program

The Sierra Moderate Allocation Program has two investment objectives: to provide long-term total return and to limit volatility and downside risk. The Program’s multi-asset diversification strategy employs broad diversification across equity and fixed income asset classes, markets, industries, and issuers. A passive “buy and hold” strategy is not employed. The overall asset allocation of the Program is tactical, not fixed. It can and does change significantly over time, re-allocating the Program in response to trend changes in the U.S. and global investment markets. As part of Sierra’s proprietary integrated risk-management methodology, the Program monitors each underlying holding daily, applying a proprietary trailing stop discipline to each holding (other than the affiliated funds, which employ the same methodology internally) to help limit the impact of any further decline in that holding on the overall Program.

California Municipal Bond Program

The Sierra California Municipal Bond Program seeks to produce satisfying long-term returns while limiting downside risk. Returns are created from interest income and changes or fluctuations in bond prices. The interest income from municipal bonds is tax-free at the federal level. California municipal bond interest is also tax-free at the state level, providing a valuable benefit for California clients. The Program diversifies a client’s account among at least four (often up to ten) California (and sometimes national) municipal bond mutual funds. Each holding is monitored daily. A proprietary trailing stop discipline is implemented with the goal of limiting drawdowns. The Program will be fully invested when there are many buy signals and will, at times, be fully in cash when municipal bond mutual funds are showing sell signals.

High Yield Corporate Bond Program

The Sierra High Yield Corporate Bond Program seeks to produce satisfying longterm returns while limiting downside risk. Returns are created from interest income as well as fluctuations in bond prices. The Program diversifies a client’s account among at least four (often up to ten) high yield corporate bond mutual funds that are expected to generate returns superior to a simple high yield corporate bond benchmark. Each holding is monitored daily and during declines, a proprietary trailing stop discipline is implemented with the goal of limiting drawdowns. The Program will be fully invested when there are many Buy signals and will, at times, be fully in cash when the universe of high yield corporate bond mutual funds are showing Sell signals.

Municipal Bond Program

The Sierra Municipal Bond Program seeks to produce satisfying long-term returns while limiting downside risk. The interest income from municipal bonds is tax-free at the federal level, providing a valuable benefit for clients in relatively high-income tax brackets. Returns are created from interest income as well as fluctuations in bond prices. The Program diversifies a client’s account among at least four (often up to ten) municipal bond mutual funds. Each holding is monitored daily and during declines, a proprietary trailing stop discipline is implemented with the goal of limiting drawdowns. 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 bond mutual funds is showing Sell signals.

Strategic Income Program

The Sierra Strategic Income Program seeks to achieve satisfactory Total Return – income and capital appreciation – over each market cycle, while aiming to limit drawdowns, an approach that has in recent years been called absolute return. It is a globally diversified strategy, with asset allocation tactically adjusted to reflect changes in the economic and market cycles. The Program invests in a diverse selection of mutual funds to access a wide range of income-oriented asset classes. A proprietary trailing stop discipline is placed under each holding (other than the affiliated funds, which employ the same methodology internally) that rises as its price rises, and the holding is sold when the price declines below the stop level to help limit drawdowns even during periods of severe market declines. There are no set proportions or limits for the Program’s allocations.

Tactical Bond Program

The Sierra Tactical Bond Program seeks to produce satisfying long-term returns while limiting downside risk. It uses a tactical approach to move between three uncorrelated asset classes: High Yield Corporate Bonds (HYCB), U.S. Treasuries, or Cash. Tactical Bond Program accounts are diversified both directly and indirectly among a number of HYCB Funds. When each underlying HYCB mutual fund hits its proprietary Sell level, we will move the relevant assets temporarily into a long-term Treasury bond fund (provided the Treasury fund is in an uptrend) until the next set of Buy signals in the HYCB funds. If the Treasury fund is not in an uptrend, we will instead move temporarily into a money-market fund until either the HYCB funds or Treasury fund gives a new Buy signal.

Laser Focused on Tax Advantaged Investment Strategies

As specialists in working with high-net-worth clients, we understand the importance of investing in a tax advantaged way, and offer options to help you reach your goals.

MUNICIPAL BOND PROGRAMS

Particularly beneficial to those who fall within a high federal tax bracket. In addition to being exempt from federal income tax, the income from municipal bonds may also be exempt from state income tax if the investor purchases securities issued by their home state or by municipalities located in their home state.

PRIVATE PLACEMENT VARIABLE ANNUITY

A tax-deferred investment that provides a wide array of mutual fund investment options, instead of the very limited menu available in most other variable annuities. Tax-deferral of all investment gains until withdrawals are taken, which is not required before the age of 95.

Available to accredited investors and qualified purchasers.

Private Placement Variable Annuity Fact Sheet

DONOR ADVISED FUNDS / CHARITABLE GIVING

Provides you with an immediate tax deduction for contributions that may not be distributed to a charity until months or years later.

Continues your commitment to philanthropy – noted as the third most important priority for those with a net worth of $1 million or greater*

*Source: Investopedia

Donor Advised Fund / Charitable Giving

Once we have determined your investment history, goals, and risk tolerance, together we select one or more of our investment programs to meet your needs.


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