Sierra High Yield Corporate Bond Program

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.

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Effective September 30, 2017 the primary benchmark for the Sierra High Yield Corporate Bond Program is the Bank of America Merrill Lynch U.S. High Yield Master II Index, which tracks the performance of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market. The secondary benchmark 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.