Strategy. ? The Fund invests 80% or more of its assets in investment-grade debt securitiesthose rated in the top four rating categories by at least one nationally recognized rating agency, such as Moodys or Standard & Poors (a Rating Agency). The dollar-weighted average quality is expected to be Baa or better. A Baa rating typically is the lowest of the four investment-grade categories. ? The Fund may invest up to twenty percent (20%) of its assets in high yield securities. The Fund considers high yield securities to include securities rated, at the time of purchase, below investment grade by at least one Rating Agency or are unrated and determined to be of comparable quality by the Adviser and may include securities … Show more… ? The Fund invests 80% or more of its assets in investment-grade debt securitiesthose rated in the top four rating categories by at least one nationally recognized rating agency, such as Moodys or Standard & Poors (a Rating Agency). The dollar-weighted average quality is expected to be Baa or better. A Baa rating typically is the lowest of the four investment-grade categories. ? The Fund may invest up to twenty percent (20%) of its assets in high yield securities. The Fund considers high yield securities to include securities rated, at the time of purchase, below investment grade by at least one Rating Agency or are unrated and determined to be of comparable quality by the Adviser and may include securities that are already in default. ? The Fund expects to maintain an effective duration of between 0 and 2 years and an effective maturity of between 0 and 3 years, under normal circumstances. ? Under normal circumstances, the Fund will invest at least eighty percent (80%) of the value of its net assets, plus any borrowings for investment purposes, in investment-grade securities with average maturities of five years or less and the dollar weighted average maturity will be three years or less. Investment-grade securities for purposes of this limitation include corporate bonds, government and agency securities, mortgage-backed securities, mortgage pass-through securities, asset-backed securities, taxable municipal bonds, bonds issued in the U.S. by foreign entities, and zero coupon bonds. ? Although the Fund normally focuses on U.S. dollar-denominated securities, the Fund may invest up to ten percent (10%) in non-U.S. dollar-denominated securities. ? The portfolio management team implements an investment strategy that is based on bottom up research and security selection. The team opportunistically seeks inefficiencies within the bond market created by the size of the market, behaviors of large investors and the nature of over-the-counter trading. The team also opportunistically focuses on discrepancies in credit ratings provided by different credit rating agencies to provide income. ? The team uses a multiple step screening process and internally built modeling to identify suitable investments, taking into account financial and credit strength, operating cash flow, free cash flow stability, interest coverage and leverage ratios. The team typically focuses on publicly available data and company data rather than third-party research. The team also meets with company management teams in a variety of venues, including direct phone contact, conferences, one-on-one meetings at conferences, visits to our offices, company-site analyst days and quarterly earnings calls, to better understand potential investments. ? SBH utilizes an integrated approach to a companys environmental, social, and corporate governance (ESG) practices within its investment process alongside other non-ESG factors. SBH believes responsible corporate citizenship is additive to the creditworthiness of underlying issuers and contributes to our quality determination and assessment of risks, however consideration of ESG factors would not necessarily result in an issuer being included or excluded from the evaluation process. ? Using a collaborative approach grounded in proprietary research, the team constructs a diversified portfolio by issuer to seek to minimize issuer-specific credit risk. Potential transactions are analyzed to evaluate impact on the entire portfolio. ? Securities may be sold when conditions have changed, and the securitys prospects are no longer attractive, the security has achieved the teams valuation target or better relative investment opportunities have been identified. Show less