SIO actively invests in a wide range of domestic and foreign fixed income securities including corporate bonds, government debt, mortgage- and asset-backed securities, as well as preferred stocks. In seeking a high level of current income, the fund may hold high-yield bonds up to 50% of the portfolio in addition to investing at least the same percentage in investment-grade. The advisor employs a high conviction, yield-oriented investment approach while implementing a bottom-up security selection process to identify attractive opportunities, while maintaining a sector-diversified and focused number of issuers. A variety of proprietary tools are also utilized in security screening and analysis, as well as quantification of risk and reward combined with credit analysis. The fund may additionally invest in mortgage dollar-roll transactions, reverse repurchase agreements, and derivatives to remain consistent with the funds investment strategies and limitations.