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.

CHRIS MAWN
Managing Director

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CHRIS MAWN
Managing Director

Mr. Mawn is a Managing Director at Highland Capital where he is responsible for the retail credit mutual fund business including investments across senior-secured loans, high yield bonds, stressed and distressed corporate credit, structured credit, and preferred and common equities. Previously at Highland, he served as a Director of Research, a Senior Credit Trader, and as Portfolio Manager in the Special Situations Group (SSG) covering distressed and special situation credit and equity investments. Before joining Highland in December 2003, Chris worked as a management consultant at Deloitte Consulting and A.T. Kearney where he led performance improvement, cost reduction, merger and acquisition and corporate and business unit strategy engagements across a number of industries. Prior to this, Chris worked at Electronic Data Systems (now HP) in corporate strategy and sales and marketing. Formerly, Mr. Mawn served as an Officer in the United States Marine Corps with 3rd Infantry Battalion, 2nd Marine Regiment and later 3rd Force Reconnaissance Company. He received an MBA in Finance with Honors from the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill. He received a BA from Dartmouth College where he was the starting Tight End on two back-to-back Ivy League Football Championship Teams.

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 Mar 22, 2017)
SYMBOLNAV
HFRAX (Class A)$7.37
HFRCX (Class C)$7.37
HFRZX (Class Z)$7.36
Fund AUM (As of Mar 22, 2017)
AUM
Total Net Assets$842.13 M
VIEW FULL PERFORMANCE
Class AClass CClass Z
SymbolHFRAXHFRCXHFRZX
Inception01/13/0001/13/0001/13/00
Gross Expense Ratio1.38%1.88%1.04%
Net Expense Ratio11.39%1.89%1.05%

Historical Returns & NAV

As of 03/22/2017Class AClass CClass Z
Net Asset Value (NAV)$7.37$7.37$7.36
Daily NAV Change ($)$-0.01$-0.01$-0.02
Daily NAV Change (%)-0.14%-0.14%-0.27%
As of 02/28/2017 MonthlyQuarterlyClass AClass A (w/sales charge)Class CClass Z
Year To Date2.42%-1.11%2.34%2.48%
One Year21.25%17.08%20.49%21.50%
Three Year1.84%0.62%1.28%2.18%
Five Year6.92%6.17%6.36%7.30%
Since Inception3.78%3.56%3.25%4.13%



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 exclude 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.