Time-Tested Investment Strategies
For over three decades, Sierra has been a pioneer in rules-based disciplined risk-managed multi-asset-class portfolio management.
Time-Tested Investment Strategies
For over three decades, Sierra has been a pioneer in tactical, global, multi-asset-class portfolio management.
Investment Strategies That Aim to Grow and Protect Wealth
Sierra’s investment programs are engineered to meet a variety of investment objectives and risk profiles. We pursue positive results through market cycles and are laser-focused on on our goal of limiting downside risk. Our tactical investment disciplines were developed with the objectives of limiting downside risk while producing satisfying long-term investment returns.
Explore the intricacies and results of our investment programs below:
The Sierra Conservative Allocation Program (the “Program”) has two objectives, to provide total return and to limit exposure to downside risk.
The Program offers a diversified multi-asset portfolio designed for investors with a conservative risk profile. When equities are in an uptrend, the Program targets equity exposure between 15% and 30%. Equity exposure may vary above or below this range depending on market conditions.
The Program is unconstrained, tactically managed and invests primarily across global equity and fixed income asset classes. The Program seeks to participate opportunistically in global investment uptrends, while aiming to limit downside risk. Cash equivalents and/or short-term bond funds are held in the absence of uptrends. The Program may hold affiliated funds.
The Sierra Moderate Allocation Program (the “Program”) has two objectives, to provide total return and to limit exposure to downside risk.
The Program offers a diversified multi-asset portfolio designed for investors with a moderate risk profile. When equities are in an uptrend, the Program targets equity exposure between 50% and 70%. Equity exposure may vary above or below this range depending on market conditions.
The Program is unconstrained, tactically managed and invests primarily across global equity and fixed asset classes. The Program seeks to participate opportunistically in global investment uptrends, while aiming to limit downside risk. Cash equivalents and/or short-term bond funds are held in the absence of uptrends. The Program may hold affiliated funds.
The Sierra California Municipal Bond Program (the “Program”) has two objectives, to provide total return and to limit exposure to downside risk.
The Program offers exposure to California municipal bonds. The Program will tactically allocate between California municipal bond funds and cash equivalents and/or short term bond funds. The Program will invest in both investment grade and non-investment grade California municipal bond funds. The Program may also invest in national municipal bond funds.
The Program seeks to participate opportunistically in California municipal bond market uptrends. Cash equivalents and/or short-term bond funds are held in the absence of uptrends in California municipal bonds.
The Sierra Growth Allocation Program (the “Program”) has two objectives, to provide total return and to limit exposure to downside risk.
The Program offers a diversified multi-asset portfolio designed for investors with an aggressive risk profile. When equities are in an uptrend, the Program targets equity exposure between 85% and 100%. Equity exposure may vary below this range depending on market conditions.
The Program is unconstrained, tactically managed and invests across global equity and fixed income asset classes. The Program seeks to participate opportunistically in global investment uptrends, while aiming to limit downside risk. Cash equivalents and/or short-term bond funds are held in the absence of uptrends. The Program may hold affiliated funds.
The Sierra High Yield Corporate Bond Program (the “Program”) has two objectives, to provide total return and to limit exposure to downside risk.
The Program offers exposure to high yield corporate bonds. The Program will tactically allocate between high yield corporate bond funds and cash equivalents and/or short term bond funds.
The Program seeks to participate opportunistically in high yield corporate bond market uptrends. Cash equivalents and/or short-term bond funds are held in the absence of uptrends in high yield corporate bonds.
The Sierra Moderate Growth Allocation Program (the “Program”) has two objectives, to provide total return and to limit exposure to downside risk.
The Program offers a diversified multi-asset portfolio designed for investors with a moderately aggressive risk profile. When equities are in an uptrend, the Program targets equity exposure between 70% and 85%. Equity exposure may vary above or below this range depending on market conditions.
The Program is unconstrained, tactically managed and invests primarily across global equity and fixed income asset classes. The Program seeks to participate opportunistically in global investment uptrends, while aiming to limit downside risk. Cash equivalents and/or short-term bond funds are held in the absence of uptrends. The Program may hold affiliated funds.
The Sierra Moderately Conservative Allocation Program (the “Program”) has two objectives, to provide total return and to limit exposure to market risk.
The Program offers a diversified multi-asset portfolio designed for investors with a moderately conservative risk profile. When equities are in an uptrend, the Program targets equity exposure between 30% and 50%. Equity exposure may vary above or below this range depending on market conditions.
The Program is unconstrained, tactically managed and invests primarily across global equity and fixed income asset classes. The Program seeks to participate opportunistically in global investment uptrends, while aiming to limit downside risk. Cash equivalents and/or short-term bond funds are held in the absence of uptrends. The Program may hold affiliated funds.
The Sierra Municipal Bond Program (the “Program”) has two objectives, to provide total return and to limit exposure to downside risk.
The Program offers exposure to municipal bonds of any credit quality and maturity. The Program will tactically allocate between municipal bond funds and cash equivalents and/or short term bond funds. The Program may also invest in state-specific municipal bond funds.
The Program seeks to participate opportunistically in municipal bond market uptrends. Cash equivalents and/or short-term bond funds are held in the absence of uptrends in municipal bonds. The Program may hold affiliated funds.
The Sierra Strategic Income Program (the “Program”) has two objectives, to provide total return and to limit exposure to downside risk.
The Program offers exposure to an income-oriented portfolio. Income-oriented asset classes include, but are not limited to, government bonds, corporate bonds, floating rate notes, preferred securities, convertibles and master limited partnerships (MLPs). The Program may hold funds that primarily invest in either investment grade or non-investment grade securities.
The Program is unconstrained, tactically managed and invests in a diversified selection of income-oriented asset classes. The Program seeks to participate opportunistically in global uptrends in income-oriented funds, while aiming to limit downside risk. Cash equivalents and/or short-term bond funds are held in the absence of uptrends. The Program may hold affiliated funds.
The Sierra Tactical Bond Program (the “Program”) has two objectives, to provide total return and to limit exposure to downside risk.
The Program offers exposure to high yield corporate bonds and long-term Treasuries. The Program will tactically allocate between high yield corporate bond funds, long-term Treasury funds, and cash equivalents and/or short term bond funds.
The Program seeks to participate opportunistically in bond market uptrends. When high yield corporate bonds are in an uptrend, the Program will be invested across several high yield corporate bond funds. When high yield corporate bonds are not in an uptrend, the Program may invest in long-term Treasuries, provided that long-term Treasuries are in an uptrend. Cash equivalents and/or short-term bond funds are held in the absence of uptrends in either high yield corporate bonds or long-term Treasuries. The Program may hold affiliated funds.
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.
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.
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.
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 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.
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.
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.
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.
Tax Advantaged Options
As an Advisor who works with mass affluent and high net worth clients, we understand the importance of investing in a tax advantaged way, and offer several options that could be beneficial to you.
Municipal Bond Programs
Can be particularly beneficial to individuals or families with high federal tax brackets. 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.
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
Sierra does not provide tax advice and we recommend you consult with a tax professional prior to engaging in these offerings.
Donor Advised Funds are irrevocable gifts made by an investor. Once gifted, the funds are generally under the control of the Donor Advised Fund’s Sponsor and cannot be reclaimed for the Donor’s personal use. Other limitations and risks may apply.
Tax Advantaged Options
As an Advisor who works with high-net-worth clients, we understand the importance of investing in a tax advantaged way, and offer options that can help you reach your goals.
Municipal Bond Programs
Particularly beneficial to individuals or families with high federal tax brackets. 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.
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
Sierra does not provide tax advice and we recommend you consult with a tax professional prior to engaging in these offerings.
Donor Advised Funds are irrevocable gifts made by an investor. Once gifted, the funds are generally under the control of the Donor Advised Fund’s Sponsor and cannot be reclaimed for the Donor’s personal use. Other limitations and risks may apply.
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If our investment process aligns with your needs, we believe Sierra is the ideal partner to help manage your wealth.
