The Sierra Strategic Income Program seeks to generate income, while limiting drawdowns and maintaining prospects for capital appreciation, an approach that has recently been called absolute return. The broad charter uses mutual funds to access income-oriented asset classes such as corporate, foreign and U.S. Treasury bonds, as well as income producing preferred and common stocks. There are no set proportions for the strategy’s allocations, allowing flexibility and active selection of the best opportunities as conditions adjust. The tactical style incorporates integrated risk management with the goal of limiting drawdowns during difficult market episodes.
Targets an average annual total return of 4%-6% 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.