Strategy. ? The Fund focuses primarily on investment-grade quality municipal bonds that are rated in one of the three highest investment-grade categories at the time of purchase by one or more nationally recognized rating agencies such as Moodys or Standard & Poors (Rating Agencies). ? 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 securities, the income from which is exempt from both federal and Colorado state income tax. ? Under normal circumstances, a minimum of 80% of the portfolio will be rated investment-grade at the time of purchase. ? The Fund may invest up to twenty percent (20%) of its total assets in … Show more… ? The Fund focuses primarily on investment-grade quality municipal bonds that are rated in one of the three highest investment-grade categories at the time of purchase by one or more nationally recognized rating agencies such as Moodys or Standard & Poors (Rating Agencies). ? 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 securities, the income from which is exempt from both federal and Colorado state income tax. ? Under normal circumstances, a minimum of 80% of the portfolio will be rated investment-grade at the time of purchase. ? The Fund may invest up to twenty percent (20%) of its total assets in municipal bonds rated below investment grade. ? The Fund may invest in unrated bonds. The portfolio management team determines the comparable quality of such instruments to determine if they meet the Funds rating requirements. ? The team researches the financial condition of various counties, public projects, school districts, and taxing authorities to seek to fully understand the issuers ability to generate revenues or levy taxes in order to meet its obligations. ? Given the Funds tax-exempt focus, the team also strives to maintain a low portfolio turnover in an effort to minimize the Funds capital gain distributions. ? In addition, the team generally avoids investing in municipal bonds that are subject to the alternative minimum tax but may do so if they believe they provide sufficient relative value. ? The team seeks to purchase securities from many areas of Colorado to reduce the economic risk to the portfolio from any particular local economy within the state. ? SBH also 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 ESG factors may be important drivers of value in conjunction with the underlying strength and potential of an issuer, however its consideration of these factors would not necessarily result in an issuer being included or excluded from the evaluation process but rather would contribute to the overall evaluation of that issuer. ? 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. However, an important consideration in all sell decisions is whether the sale would generate a possible realized capital gain. Show less