For eleven years, Mr. Bugg served as the Senior Investment Manager for Comerica Bank’s Asset Management Department in Texas. In 2000, he helped launch and manage the Dividend Income Strategy. Prior to his employment at Comerica, Mr. Bugg served as a Portfolio Manager and Equity Analyst for AmSouth Bank and SunTrust Bank. In addition to managing the Fund, Mr. Bugg’s responsibilities include managing the Dividend Equity Strategy and Managed ETF Strategy for Brookmont’s SMA clients. Mr. Bugg serves on the Investment Policy Committee and directs the firm’s asset models.
The Dividend Equity Fund utilizes a sub-advised investment strategy and seeks to Invest in high quality dividend paying stocks with the objective of providing consistent monthly income as well as the potential for capital appreciation.
Invest for Income and Capital Appreciation
The Dividend Equity Fund seeks to invest in high quality, dividend-paying stocks with appreciation potential by following a multi-step process.
- Monthly cash flow, downside protection, potential for gains
- Low turnover – 5-20%
- Unconstrained by cap and style
- Emphasize sector selection based on economic and market cycles
- Concentrated portfolio of 35-40 stocks
Parameters set by the Sub-Advisor are subject to change.
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Historical Returns & NAV
The performance data quoted here represents past performance and is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor’s shares when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted.
Please consider the investment objectives, risks, charges and expenses of Highland Funds carefully before investing. A prospectus with this and other information about Highland's mutual funds can be found on the Literature tab above. You may also obtain a prospectus for our mutual funds by calling 877-665-1287. Please read the prospectus carefully before investing.
1. The Adviser has contractually agreed to limit the total annual operating expenses of the Fund to 1.00% of average daily net assets attributable to any class of the Fund. The Expense Cap will continue through at least January 31, 2015.
*The maximum sales charge for Class A shares is 5.75%.
Derivatives Risk. Derivatives are subject to the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index. Derivatives also expose the Fund to the credit risk of the derivative counterparty.
Dividend-Paying Stock Risk. Companies that have paid regular dividends to shareholders may decrease or eliminate dividend payments in the future. A decrease in dividend payments by an issuer may result in a decrease in the value of the security held by the Fund or the Fund receiving less income. Additionally, a fund pursuing a dividend-oriented investment strategy may at times underperform other funds that invest more broadly or that have different investment styles.
Equity Securities Risk. Equity securities, such as common stocks, are subject to market, economic and business risks that may cause their prices to fluctuate. In addition, common stocks represent a share of ownership in a company, and rank after bonds and preferred stock in their claim on the company’s assets in the event of bankruptcy.
ETF Risk. ETFs that the Fund may invest in are subject to market, economic and business risks that may cause their prices to fluctuate. Shareholders will pay higher expenses than would be the case if making direct investments in the underlying ETFs. Because the Fund invests in ETFs, it is subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF’s shares may trade at a discount to its net asset value (”NAV”), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a Fund’s ability to sell its shares.
Non-U.S. Securities Risk. Investments in securities of non-U.S. issuers, particularly securities of emerging market issuers, involve certain risks not involved in domestic investments (for example, expropriation or political or economic instability).
Micro, Small and Mid-Cap Securities Risk. Investments in securities of companies with micro, small or medium capitalizations involve certain risks that may differ from, or be greater than, those for larger companies, such as higher volatility, lower trading volume, fewer business lines and lack of public information.
Non-Diversification Risk. As a non-diversified fund, the Fund may invest a larger portion of its assets in the securities of one or a few issuers than a diversified fund. A non-diversified fund’s investment in fewer issuers may result in the fund’s shares being more sensitive to the economic results of those issuers. An investment in the Fund could fluctuate in value more than an investment in a diversified fund.
Management Risk. The Fund relies on the sub-adviser (“Brookmont Capital Management, LLC”) ability to achieve its investment objective. Brookmont Capital Management, LLC may be incorrect in its assessment of the intrinsic value of the securities the Fund holds which may result in a decline in the value of Fund shares and failure to achieve its investment objective. The Fund’s ability to identify and invest in attractive opportunities is dependent upon the Adviser (“Highland Funds Asset Management, L.P.”) or Sub-Adviser, as applicable. If one or more key individuals leave, the Adviser or Sub-Adviser, as applicable, may not be able to hire qualified replacements or may require extended time to do so. This situation could prevent the Fund from achieving its investment objectives.
Source: State Street Bank and Trust Company
Highland Funds’ mutual funds are distributed by Highland Capital Funds Distributor