Floating Rate Opportunities Fund

MARK OKADA, CFA
Co-Founder,
Chief Investment Officer

Bio »

MARK_OKADA
MARK OKADA, CFA
Co-Founder,
Chief Investment Officer

Mr. Okada is Chief Investment Officer of Highland Capital Management, L.P. and is responsible for overseeing Highland’s investment activities for its various strategies. Mr. Okada is a pioneer in the development of the bank loan market and has over 30 years of credit experience. He is responsible for structuring one of the industry’s first arbitrage CLOs and was actively involved in the development of Highland’s bank loan separate account and mutual fund platforms. Mr. Okada received a BA in Economics and a BA in Psychology, cum laude, from the University of California, Los Angeles. He has earned the right to use the Chartered Financial Analyst designation. Mr. Okada is a Director of NexBank, Chairman of the Board of Directors of Common Grace Ministries, Inc., is on the Board of Directors for Education is Freedom, and also serves on the Growsouth Fund Advisory Board.

JON POGLITSCH
Managing Director

Bio »

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JON POGLITSCH
Managing Director

Mr. Poglitsch is a Managing Director at Highland Capital Management, where he has spent a substantial amount of time covering the Energy, Competitive Power, Utilities, and Transportation industries. In his previous role at HCM, he served as a Senior Portfolio Analyst on both the Institutional and Retail fund research teams. Prior to joining the firm in 2007, Mr. Poglitsch was a consultant for Muse Stancil and Co., where he provided mergers & acquisition, valuation, and strategic advisory services to a variety of clients in the midstream and downstream energy sectors, including integrated oil, independent refinery, pipeline, power, and renewable fuel companies. Prior to Muse, Mr. Poglitsch was a senior financial analyst for American Airlines. He received an MBA with a concentration in Finance from the University of Texas at Austin and a BS in Chemical Engineering from the University of Oklahoma. Mr. Poglitsch has earned the right to use the Chartered Financial Analyst designation.

Fund Overview

Investment Objective

The investment objective of the Highland Floating Rate Opportunities Fund is to provide a high level of current income, consistent with the preservation of capital.

Attractive Alternatives for Income-Oriented Investors
  • High income potential in all markets
  • Yields that reset when short-term interest rates move, which may mitigate price declines in a rising short-term interest rate environment
  • Low correlation to other asset classes
  • Access to one of the largest and most experienced senior loan managers
  • Most fixed rate securities experience price declines when interest rates rise. Floating Rate Senior loans are different.

They are short-duration, floating-rate securities. So, as interest rates rise, yields on bank loans increase, while their short duration helps keep prices relatively stable.

Fund NAV (As of Jul 25, 2017)
SYMBOLNAV
HFRAX (Class A)$7.29
HFRCX (Class C)$7.29
HFRZX (Class Z)$7.29
Fund AUM (As of Jul 25, 2017)
AUM
Total Net Assets$866.75 M
VIEW FULL PERFORMANCE
Class AClass CClass Z
SymbolHFRAXHFRCXHFRZX
Inception01/13/0001/13/0001/13/00
Gross Expense Ratio1.73%2.23%1.38%
Net Expense Ratio11.73%2.33%1.38%

Historical Returns & NAV

As of 07/25/2017Class AClass CClass Z
Net Asset Value (NAV)$7.29$7.29$7.29
Daily NAV Change ($)$0.00$0.00$0.01
Daily NAV Change (%)0.00%0.00%0.14%
As of 06/30/2017 MonthlyQuarterlyClass AClass A (w/sales charge)Class CClass C (w/sales charge)Class Z
Year To Date2.12%-1.40%2.01%1.01%2.30%
One Year9.98%6.15%9.43%8.43%10.36%
Three Year1.08%-0.13%0.57%0.57%1.43%
Five Year6.25%5.49%5.72%5.72%6.62%
Ten Year0.43%0.08%-0.07%-0.07%0.77%
Since Inception3.68%3.47%3.17%3.17%4.03%



View all Literature & Forms

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.

*The total annual operating expenses of the Fund are Class A 1.73%, Class C 2.23%, Class Z 1.38%. Class A Max Sales Charge: 3.50%. Class A Max Sales Charge: 3.50%. Class C Contingent Deferred Sales Charge (“CDSC”) is 1% within the first year from each purchase. Class C performance results shown include CDSC. Performance results reflect any contractual waivers and/or reimbursements of fund expenses by the Advisor. Absent this limitation, performance results would have been lower.

Non-Payment Risk. Senior Loans, like other corporate debt obligations, are subject to the risk of non-payment of scheduled interest and/or principal. Non-payment would result in a reduction of income to the Fund, a reduction in the value of the Senior Loan experiencing non-payment and a potential decrease in the NAV of the Fund.

Credit Risk. The Fund may invest all or substantially all of its assets in Senior Loans or other securities that are rated below investment grade and unrated Senior Loans deemed by Highland to be of comparable quality. Securities rated below investment grade are commonly referred to as “high yield securities” or “junk securities.” They are regarded as predominantly speculative with respect to the issuing company’s continuing ability to meet principal and interest payments. Investments in high yield Senior Loans and other securities may result in greater NAV fluctuation than if the Fund did not make such investments.

Senior Loans Risk. The risks associated with senior loans are similar to the risks of below investment grade securities in that they are considered speculative. In addition, as with any debt instrument, senior loans are also generally subject to the risk of price declines and to increases in prevailing interest rates. Senior loans are also subject to the risk that, as interest rates rise, the cost of borrowing increases, which may also increase the risk and rate of default. In addition, the interest rates of floating rate loans typically only adjust to changes in short-term interest rates; long term interest rates can vary dramatically from short term interest rates. Therefore, senior loans may not mitigate price declines in a rising long-term interest rate environment.

Risk of Restrictions on Resale. Senior Loans may not be readily marketable and may be subject to restrictions on resale. As a result, the ability of the Fund to dispose of its investments in a timely fashion and at an advantageous price may be restricted.

Ongoing Monitoring Risk. On behalf of the several Lenders, the Agent generally will be required to administer and manage the Senior Loans and, with respect to collateralized Senior Loans, to service or monitor the collateral.

Sector Concentration Risk. The fund may invest up to 25% of its assets in a single sector. As a result the Fund’s investment in fewer sectors may result in the Fund’s shares being more sensitive to the economic results and other risks specific to those sectors. An investment in the Fund could fluctuate in value more than the investment in a more diversified fund.

Glossary: Click for important terms and definitions

Source: State Street Bank and Trust Company

Highland Funds’ mutual funds are distributed by Highland Capital Funds Distributor

MARK OKADA - PARTNER & SENIOR PORTFOLIO MANAGER

Mr. Okada is Chief Investment Officer of Highland Capital Management, L.P. and is responsible for overseeing Highland’s investment activities for its various strategies. Mr. Okada is a pioneer in the development of the bank loan market and has over 30 years of credit experience. He is responsible for structuring one of the industry’s first arbitrage CLOs and was actively involved in the development of Highland’s bank loan separate account and mutual fund platforms. Mr. Okada received a BA in Economics and a BA in Psychology, cum laude, from the University of California, Los Angeles. He has earned the right to use the Chartered Financial Analyst designation. Mr. Okada is a Director of NexBank, Chairman of the Board of Directors of Common Grace Ministries, Inc., is on the Board of Directors for Education is Freedom, and also serves on the GrowSouth Fund Advisory board.