The Sierra High Yield Corporate Bond Program seeks to produce satisfying long-term returns while limiting downside risk. Returns are created from interest income as well as increases in bond prices. The strategy 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 significant declines, the team implements a defensive stop-loss discipline 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 mutual funds are showing sell signals.
Targets an average annual total return of 6%-8% or more per year, after fees, while limiting downside risk to 5%, even in a bad month or quarter.
*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.