Healthcare Opportunities Fund

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SEC Filings
  • Seeks long-term capital appreciation.
  • Seeks to participate in the long term growth potential of the Healthcare market.
  • Our strategy seeks to pair effective risk management with alpha generating potential from superior stock picking.
  • The primary focus of the Fund will be in public equities and fixed income securities across all market capitalizations in the Healthcare sector..

Fund Materials

Fund Overview

Investment Objective

The Healthcare Opportunities Fund seeks long-term capital appreciation by pairing effective risk management with alpha generating potential from investments in public equities and fixed income securities across all market capitalizations in the Healthcare industry.

  • Seeks long-term capital appreciation.
  • Seeks to participate in the long term growth potential of the Healthcare market.
  • Our strategy seeks to pair effective risk management with alpha generating potential from superior stock picking.
  • The primary focus of the Fund will be in public equities and fixed income securities across all market capitalizations in the Healthcare sector.
Fund NAV (As of Mar 27, 2020)
SYMBOLNAV
HHCAX (Class A)$12.23
HHCCX (Class C)$11.38
HHCZX (Class Z)$12.74
Fund AUM (As of Mar 27, 2020)
AUM
Total Net Assets$23.44 M
Class AClass CClass Z
SymbolHHCAXHHCCXHHCZX
Inception05/05/0805/05/0805/05/08
Gross Expense Ratio2.64%3.30%2.36%
Net Expense Ratio12.64%3.30%2.36%
As of 03/27/2020Class AClass CClass Z
Net Asset Value (NAV)$12.23$11.38$12.74
Daily NAV Change ($)$-0.28$-0.26$-0.29
Daily NAV Change (%)-2.24%-2.23%-2.23%
As of 02/29/2020 Class AClass A (w/sales charge)Class CClass C (w/sales charge)Class Z
One Year-5.28%-10.49%-5.86%-6.80%-4.90%
Three Year8.42%6.40%7.74%7.74%8.79%
Five Year-1.38%-2.49%-1.97%-1.97%-1.00%
Ten Year4.74%4.15%4.12%4.12%5.12%
Since Inception5.27%4.77%4.65%4.65%5.65%

Portfolio Manager

James Dondero, CFA

President, Co-Founder

Bio

Nate Burns

Managing Director

Bio

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 Performance results reflect the contractual waivers and/or reimbursements of fund expenses by the Advisor. Absent this limitation, performance results would have been lower. Total net operating expenses excluding dividends on short sales are Class A 2.10%, Class C 2.75%, and Class Z 1.75%.

*The maximum sales charge for Class A shares is 5.50%.

Debt Securities Risk. The Fund’s ability to invest in high-yield debt securities generally subjects the Fund to greater risk than securities with higher ratings. Such securities are regarded by the rating organizations as predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation.

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.

Equity Securities Risk. Equity securities, such as common stocks, are subject to market, economic and business risks that may cause their prices to fluctuate.

Industry Concentration Risk. Because the Fund normally invests at least 80% of the value of its assets in healthcare companies, the Fund’s performance largely depends on the overall condition of the healthcare industry and the Fund is susceptible to economic, political and regulatory risks or other occurrences associated with the healthcare industry.

Leverage Risk. Leverage may increase the risk of loss, cause fluctuations in the market value of the Fund’s portfolio to have disproportionately large effects or cause the NAV of the Fund generally to decline faster than it would otherwise.

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-U.S. Securities Risk. Investments in securities of non-U.S. issuers involve certain risks not involved in domestic investments (for example, expropriation or political or economic instability).

Portfolio Turnover Risk. High portfolio turnover will increase the Fund’s transaction costs and may result in increased realization of net short-term capital gains, higher taxable distributions and lower after-tax performance.

Short Sales Risk. Short sales that are not made “against-the-box” (as defined under “Description of Principal Investments”) theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase.

Fixed Income Market Risk is the risk that fixed income markets may, in response to governmental intervention, economic or market developments (including potentially a reduction in the number of broker dealers willing to engage in market-making activity), or other factors, experience periods of increased volatility and reduced liquidity. During those periods, the Fund may experience increased levels of shareholder redemptions, and may have to sell securities at times when it would otherwise not do so, and at unfavorable prices. Fixed income securities may be difficult to value during such periods.

High Yield Debt Securities Risk is the risk that below investment grade securities or unrated securities of similar credit quality (commonly known as “high yield securities” or “junk securities”) are more likely to default than higher rated securities. The Fund’s ability to invest in high-yield debt securities generally subjects the Fund to greater risk than securities with higher ratings. Such securities are regarded by the rating organizations as predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation. The market value of these securities is generally more sensitive to corporate developments and economic conditions and can be volatile. Market conditions can diminish liquidity and make accurate valuations difficult to obtain.

Prepayment Risk is the risk that during periods of falling interest rates, issuers of debt securities may repay higher rate securities before their maturity dates. This may cause the Fund to lose potential price appreciation and to be forced to reinvest the unanticipated proceeds at lower interest rates. This may adversely affect the NAV of the Fund’s shares.

Senior Loans Risk is the risk associated with Senior Loans, which are typically below investment grade and are considered speculative because of the credit risk of their issuers. As with any debt instrument, Senior Loans are generally subject to the risk of price declines and to increases in interest rates, particularly long-term rates. Senior loans are also subject to the risk that, as interest rates rise, the cost of borrowing increases, which may increase the risk 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. The secondary market for loans is generally less liquid than the market for higher grade debt. Less liquidity in the secondary trading market could adversely affect the price at which the Fund could sell a loan, and could adversely affect the NAV of the Fund’s shares. The volume and frequency of secondary market trading in such loans varies significantly over time and among loans. Although Senior Loans in which the Fund will invest will often be secured by collateral, there can be no assurance that liquidation of such collateral would satisfy the borrower’s obligation in the event of a default or that such collateral could be readily liquidated.

Glossary: Click for important terms and definitions

Source: SEI Investments Global Funds Services

Highland Funds’ mutual funds are distributed by NexPoint Securities, Inc., Member FINRA/SIPC