DALLAS, May 16, 2023
/PRNewswire/ -- The Highland Income Fund (NYSE: HFRO) ("HFRO" or
the "Fund") today announced that the Fund's Board of Trustees (the
"Board") approved a repurchase program pursuant to which the Fund
may repurchase up to $100 million of
its stock in open-market transactions over a two-year period.
In conjunction with the repurchase program, the Board approved
modifications to the Fund's investment objective. Under the
modified investment objective, the Fund will pursue growth of
capital along with income. These changes expand the Fund's universe
of opportunistic investments and provide flexibility to seek growth
of capital along with income opportunities. The Fund will change
its name to the Highland Opportunities and Income Fund to reflect
the new investment objective.
All changes will take effect on June 15,
2023.
The Fund's strategy will not change materially as a result of
the modifications to its investment objective. The Fund will invest
directly and indirectly (e.g., through derivatives that are the
economic equivalent of direct investments) in the following
categories of securities and instruments: (i) investments in
securities or other instruments directly or indirectly secured by
real estate, including real estate investment trusts ("REITs"),
preferred equity, securities convertible into equity securities and
mezzanine debt; (ii) other instruments, including, but not
limited to, secured and unsecured fixed-rate loans and corporate
bonds, distressed securities, mezzanine securities, structured
products (including but not limited to mortgage-backed securities,
collateralized loan obligations and asset-backed securities),
convertible and preferred securities, equities (public and
private), and futures and options; and (iii) floating rate loans
and other securities deemed to be floating rate investments. With
the new investment objective, the Fund may be recategorized within
fund classification systems such as Lipper and Morningstar.
The Adviser believes the share repurchase program and the new
investment objective will enhance value for HFRO shareholders.
"HFRO has traditionally provided investors with exposure to a
variety of securities and instruments that maintain a high level of
current income consistent with preservation of capital," said
Scott Johnson, the Fund's Portfolio
Manager. "Given the current market environment and our long-term
investment outlook, we believe investors will benefit from a
broader array of opportunistic investments while maintaining a
focus on generating income."
The Adviser is implementing other initiatives to help deliver
shareholder value and narrow the share price's discount to net
asset value. These include enhancing investor communications by
adding investor relations personnel and increasing portfolio-level
updates. The Adviser plans to deliver these updates by hosting
investors calls and publishing commentary on top holdings
quarterly. The latest Fund commentary is currently available on the
website at nexpointassetmgmt.com/income-fund. The Adviser plans to
host its next quarterly call in June.
About the Highland Income Fund
The Highland Income Fund (NYSE: HFRO) is a closed-end fund
managed by NexPoint Asset Management, L.P. For more information
visit nexpointassetmgmt.com/income-fund/.
About NexPoint Asset Management, L.P.
NexPoint Asset Management, L.P. is an SEC-registered investment
adviser. It is the adviser to a suite of registered funds,
including open-end mutual funds, closed-end funds, and an
exchange-traded fund. For more information
visit nexpointassetmgmt.com.
Disclosures
Before investing in the Fund, you should carefully consider
the Fund's investment objectives, risks, charges, and expenses. For
a copy of a prospectus or summary prospectus, which contains this
and other information, please visit our website
at www.nexpointassetmgmt.com or call 1-800-357-9167.
Please read the fund prospectus carefully before investing.
Shares of closed-end investment companies frequently trade at
a discount to NAV. The price of the Fund's shares is determined by
a number of factors, several of which are beyond the control of the
Fund. Therefore, the Fund cannot predict whether its shares will
trade at, below or above net asset value. Past performance does not
guarantee future results.
CONTACTS
Media Relations
Prosek Partners for NexPoint Asset
Management
Pro-nexpoint@prosek.com
Investor Relations
Kristen
Thomas
IR@nexpoint.com
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SOURCE Highland Income Fund