The new Fund will utilize Sierra’s distinctive tactical investment approach to seek to fulfill its objectives of providing total return while limiting volatility and downside risk. The Fund’s target exposure to global equities, via underlying mutual funds and ETFs, will average between 30%-50% over a three-year period, based on normal market conditions.
“In an increasingly volatile and dynamic market environment, investors are looking for tactical approaches that provide flexibility, but also focus on mitigating downside risk,” said Ken Sleeper, Co-CIO and Lead Portfolio Manager. “The Sierra Tactical Risk Spectrum 50 Fund will allow for more equity exposure during uptrends to increase upside capture, while still utilizing a trailing-stop discipline that will generate Sell signals when any holding enters a downtrend, limiting downside risk. Sierra’s time-tested, conservative, rules-based philosophy is re-imagined in a uniquely flexible Fund that provides a greater range of equity exposure, while adhering to the type of risk management we are known for.”
The Sierra Tactical Risk Spectrum 50 Fund will seek to achieve its twin objectives by investing tactically in a diverse combination of unaffiliated mutual funds and exchange traded funds (ETFs) for exposure to multiple asset classes and strategies, including:
- U.S. common stocks
- Foreign common stocks, including from emerging markets
- U.S. fixed income securities
- Foreign fixed income securities, including from emerging markets
- High yield corporate bonds
- Preferred stocks
- Municipal bonds
- Physical commodities (through mutual funds and ETFs that invest in commodity-linked derivatives)
- Mutual funds that implement alternative strategies
The Sierra Tactical Risk Spectrum 50 Fund will be managed by Kenneth L. Sleeper, MBA, PhD, and David C. Wright, JD, co-founders of Sierra.
Sierra will construct the Fund’s portfolio by quantitatively analyzing all potential underlying funds to identify those that exhibit the most attractive positive trends and other quantitative metrics, and have given “Buy” signals under the firm’s proprietary investment processes that have been in place for over 33 years. Each holding will be monitored daily, and Sierra’s proprietary stop-loss discipline will be executed during market declines with the goal of limiting drawdowns in the overall Fund. The Fund may temporarily be 100% in cash on occasions if all holdings trigger “Sell” signals.
Four share classes of the Fund are available (symbols SRFQX, SRFKX, SRFNX, SRFJX). All share classes have a minimum initial investment of $10,000.
For more information on the Sierra mutual funds, please visit www.sierramutualfunds.com.
About The Sierra Companies:
The Sierra Group of Companies (“Sierra”) comprises Sierra Investment Management, Inc., Ocean Park Asset Management, Inc., and Wright Fund Management, LLC, which manages the Sierra Mutual Funds, which include the Sierra Tactical All Asset Fund, Sierra Tactical Core Income Fund, Sierra Tactical Municipal Fund, Sierra Tactical Bond Fund, as well as the new Fund. As of May 31, 2021, Sierra manages or advises over $8 billion in assets, in separate managed accounts, TAMP models and mutual funds.
Since 1987 it has been Sierra’s goal to help retirees and other conservative investors preserve and grow their wealth. Through the years, Sierra has fine-tuned an investment approach specifically designed to limit downside risk and to provide returns that conservative investors would deem satisfying. Using decades of strategic research and proven risk management disciplines, Sierra strives to help its clients meet their specific investment goals.
Past performance does not guarantee future results and there is no assurance that any investment strategy will achieve its investment objective. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Sierra Mutual Funds. This and other information about the funds is contained in the prospectuses and should be read carefully before investing. The prospectuses can be obtained on Sierra’s website sierramutualfunds.com or by calling toll free 1-800-729-1467. The Sierra Mutual Funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC.
Neither Sierra Investment Management, Inc., Ocean Park Asset Management, Inc. nor Wright Fund Management LLC are affiliated with Northern Lights Distributors, LLC
Mutual Funds involve risk including the possible loss of principal. There is no assurance that the fund will achieve its investment objectives. The Fund is a new mutual fund and has a limited history of operations for investors to evaluate. When the Fund invests in commodities through Underlying Funds that invest in commodity-linked derivative instruments the Fund is exposed to risks affecting a particular industry or commodity. Investments in foreign securities could subject the Fund to greater risks including currency fluctuation, economic conditions, and different governmental and accounting standards. In addition to the risks generally associated with investing in securities of foreign companies, countries with emerging markets also may have relatively unstable governments, social and legal systems that do not protect shareholders, economies based on only a few industries, and securities markets that trade a small number of issues. In general, the price of a fixed income security falls when interest rates rise. The Fund may invest in high yield securities, also known as “junk bonds.” High yield securities provide greater income and opportunity for gain but entail greater risk of loss of principal. Any strategy that includes inverse securities could cause the Fund to suffer significant losses. The Fund will not participate in market gains to the extent it holds inverse Underlying Funds. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Municipal securities are subject to the risk that legislative changes and local and business developments may adversely affect the yield or value of the Fund’s investments in such securities. Increased portfolio turnover may result in higher brokerage commissions, dealer mark-ups and other transaction costs and may result in taxable capital gains. The value of preferred stocks will fluctuate with changes in interest rates. Investments in lesser-known, small and medium capitalization companies may be more vulnerable than larger, more established organizations. Each Underlying Fund is subject to specific risks, depending on its investments. Underlying Funds are also subject to investment advisory fees and other expenses, which are indirectly borne by the Fund. As a result, your overall cost of investing in the underlying stocks, bonds and other basic assets will be higher than the cost of investing directly in them.