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
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SOURCE Highland Income Fund
