Sierra Tactical Bond Fund Class C (STBDX)

Overview

The investment strategy of the fund revolves around allocating its assets primarily into high-yield corporate bonds, widely known as junk bonds, and long-duration U.S. Treasury securities. It aims to diversify its investment portfolio through a mix of open-end investment companies (mutual funds) and exchange-traded funds (ETFs) that specialize in these financial instruments. The fund maintains a commitment to invest at least 80% of its net assets, which is inclusive of any borrowed funds for investment purposes, in these underlying bond funds, adhering to its focused investment objective even under normal market conditions.

Products and Services

• High-Yield Corporate Bond Funds (HYCB Funds)

  These funds focus on investing in corporate bonds that are rated below investment grade, commonly known as junk bonds. High-yield corporate bond funds aim to offer higher returns compared to investment-grade bonds, albeit at a higher risk due to the increased likelihood of default by the bond issuers. This product is suitable for investors looking for higher income potential and who are willing to accept the associated risks of investing in lower-rated securities.

• Long-Duration U.S. Treasury Securities Funds (Treasury Bond Funds)

  This category comprises funds that invest in U.S. Treasury securities with longer maturities. Long-duration Treasury bond funds are known for their sensitivity to interest rate changes, which affects the bond prices inversely. These funds seek to provide safety and predictability, making them an attractive option for conservative investors or as a component of a diversified investment portfolio aiming to mitigate risk related to the equity market volatility.