Thank you for your interest in the the Sierra Core Retirement Fund.
The Sierra Core Fund is geared toward retirees as well as other conservative investors,
with two goals:
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To protect your capital by attempting to limit volatility and downside risk, and
specifically attempting to limit drawdowns (periods of decline in the fund's Net
Asset Value) to 4%-5% even during a month or quarter in which the stock market is
very negative.
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To produce satisfying Total Returns (dividend yield and capital gain distributions,
plus-or-minus change in Net Asset Value), with a goal to average 8% to 10% per year
Total Return through a market cycle.”
The Sierra Core Retirement Fund is managed by a team with over 24 years of experience
in managing private accounts with similar “absolute return” goals, for retirees
and other conservative investors. However, as you know, there can be no assurance
that these goals can be met, especially in the short term.
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The Sierra Core Fund will indeed experience some down months, and some down quarters
– and we cannot rule out the possibility of a down year from time to time. The past
performance that the Portfolio Managers have achieved on private accounts as shown
on page 5 of the Prospectus, or in the Core Fund since its inception, is no guarantee
that future results will be as good.
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The Sierra Core Fund invests in a very wide range of Asset Classes to create an
unusually diversified portfolio, most of the time with low or moderate correlation
with the S&P 500. The Portfolio Managers use mutual funds (all purchased at no load)
and ETFs to access the various underlying Asset Classes.
The Portfolio Managers use trailing stops under each holding in an effort to reduce
the impact of any sustained declines on the portfolio as a whole. Moreover, the
fund’s allocations among Asset Classes are not static, but are re-allocated tactically
from time to time, with each decision intended to serve one or both of the above
goals.
The Core Fund is managed by a team with over 24 years of experience in managing
private accounts in a similar style. The Core Fund invests in a very wide range
of Asset Classes to create an unusually diversified portfolio, most of the time
with only moderate correlation with the S&P 500*.
Click here for pie chart to view our recent allocation among Asset Classes.
More details on the investment strategies, goals and risks of the Sierra Core Fund
are set forth in the
Prospectus Please review the Prospectus carefully before investing. You
can also view and download the
Statement of Additional Information and account applications. The Sierra
Core Fund pays a quarterly dividend. Shares are available through TD Ameritrade,
Charles Schwab & Co, Inc., Fidelity and many other firms – please see the “Where
to Purchase” link.
* The S&P 500 Index, a registered trademark of McGraw-Hill Co., Inc., is a market-capitalization-weighted
index of 500 widely-held common stocks. Investors cannot directly invest in an index
and unmanaged index returns do not reflect any fees, expenses or sales charges.
The Fund invests in Underlying Funds, including mutual funds, closed-end funds and
ETFs. In some instances it may be less expensive for an investor to invest in the
Underlying Funds directly. There is also a risk that investment advisers of those
Underlying Funds may make investment decisions that are detrimental to the performance
of the Fund. Investments in Underlying Funds that own small and mid-capitalization
companies may be more vulnerable than larger, more established organizations to
adverse business or economic developments. Investments in Underlying Funds that
invest in foreign equity and debt securities could subject the Fund to greater risks
including, currency fluctuation, economic conditions, and different governmental
and accounting standards.