Resources

https://www.sec.gov/Archives/edgar/data/1354917/000175272419050667/lsef_nportex.htm

DALLAS, October 25, 2019 – Fund board approves up to $25 million of share repurchases over six-month period

Highland Capital Management Fund Advisors, L.P. (“HCMFA”) announced today that the Board of Trustees (the “Board”) of the Highland Income Fund (NYSE:HFRO) (“HFRO” or the “Fund”) approved a repurchase program pursuant to which the Fund may repurchase up to $25 million of the Fund’s shares over a period of six months.

The program allows for the Fund to repurchase shares, if trading at a discount, in open market transactions until the conclusion of the repurchase period on April 24, 2020.

By purchasing Fund shares, which are currently trading at a discount to the Fund’s net asset value, HCMFA seeks to enhance value for HFRO shareholders.

The total repurchase amount and the timing of repurchases will be subject to the Fund’s available cash, after consideration of reserves necessary for anticipated fund expenses and contingencies. The Fund may sell portfolio securities in order to generate cash. There is no assurance that the Fund will repurchase shares in any amount.

About the Highland Income Fund

The Highland Income Fund (NYSE:HFRO) (the “Fund”) is a closed-end fund managed by Highland Capital Management Fund Advisors, L.P. (“HCMFA”). On May 20, 2019, the Fund changed its name from the Highland Floating Rate Opportunities Fund to the Highland Income Fund. The Fund seeks to provide a high level of current income consistent with the preservation of capital. For more information visit www.highlandfunds.com/income-fund/.

Shares of closed-end investment companies frequently trade at a discount to net asset value. 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.

About Highland Capital Management Fund Advisors, L.P.

Highland Capital Management Fund Advisors, L.P. (“HCMFA”) is an SEC-registered investment adviser operating on a multibillion-dollar global alternative investment platform. HCMFA manages a suite of investment offerings, including closed-end funds, open-end funds, and an exchange-traded fund, which cover a range of asset classes and investment strategies. For more information visit www.highlandfunds.com.

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.highlandfunds.com or call 1-877-665-1287. Please read the fund prospectus carefully before investing.

###

Media Contact

Lucy Bannon

lbannon@highlandcapital.com

1-972-419-6272

DALLAS, Nov. 1, 2019 – Highland Income Fund (NYSE: HFRO) (“HFRO” or the “Fund”) today announced its regular monthly dividend on its common stock of $0.0770 per share. The dividend will be payable on November 29, 2019 to shareholders of record at the close of business November 20, 2019.

The Fund is a closed-end fund managed by Highland Capital Management Fund Advisors, L.P. (the “Manager”). The Fund will pursue its investment objective by investing primarily in the following categories of securities and instruments: (i) floating-rate loans and other securities deemed to be floating-rate investments; (ii) 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); and (iii) 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.  The investment objective of the Fund is to provide a high level of current income, consistent with the preservation of capital in a registered fund format. The Fund declares and pays dividends of investment income monthly.

Total operating expenses as of the most recent fund semi-annual report are 3.04%. For most recent quarter-end performance please visit www.highlandfunds.com or call 1-800-357-9167.

About Highland Capital Management Fund Advisors, L.P.

Highland Capital Management Fund Advisors, L.P. is an adviser on the Highland Capital Management investment platform (“Highland”). A pioneer in the leveraged loan market, the firm has evolved over 25 years, building on its credit expertise and value-based approach to expand into other asset classes. Today, Highland operates a diverse investment platform, serving both institutional and retail investors worldwide. In addition to high yield credit, Highland’s investment capabilities include public equities, real estate, private equity and special situations, structured credit, and sector- and region-specific verticals built around specialized teams. For more information visit www.highlandfunds.com.

Investors should consider the investment objectives, risks, charges and expenses of the Highland Income Fund carefully before investing. This and other information can be found in the Fund’s prospectus, which may be obtained by calling 1-800-357-9167 or visiting www.highlandfunds.com. Please read the prospectus carefully before you invest.

Effective May 20, 2019, the Fund changed its name to Highland Income Fund and expanded its investment strategy by removing the Fund’s policy of, under normal market circumstances, investing at least 80% of its net assets in floating-rate loans and other securities deemed to be floating-rate instruments. See the March 20, 2019 press release for further details regarding the Fund’s name change and expanded investment strategy: “Highland Floating Rate Opportunities Fund Announces Name Change to Highland Income Fund“

Effective shortly after close of business on November 3, 2017, Highland Floating Rate Fund converted from an open-end fund to a closed-end fund, and began trading on the NYSE under the symbol HFRO on November 6, 2017. The performance data presented above for periods prior to November 3, 2017 reflects that of Class Z shares of the Fund when it was an open-end fund, HFRZX. The closed-end Fund pursues the same investment objective and strategy as it did before its conversion. The expense ratio is that of Class Z shares of the Fund prior to its conversion.

No assurance can be given that the Fund will achieve its investment objectives.

Shares of closed-end investment companies frequently trade at a discount to net asset value. 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.

Closed-End Fund Risk. The Fund is a closed-end investment company designed primarily for long-term investors and not as a trading vehicle. No assurance can be given that a shareholder will be able to sell his or her shares on the NYSE when he or she chooses to do so, and no assurance can be given as to the price at which any such sale may be effected.

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. Non-payment of scheduled interest and/or principal 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. 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 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.

Real Estate Industry Risk: Issuers principally engaged in real estate industry, including real estate investment trusts, may be subject to risks similar to the risks associated with the direct ownership of real estate, including: (i) changes in general economic and market conditions; (ii) changes in the value of real estate properties; (iii) risks related to local economic conditions, overbuilding and increased competition; (iv) increases in property taxes and operating expenses; (v) changes in zoning laws; (vi) casualty and condemnation losses; (vii) variations in rental income, neighborhood values or the appeal of property to tenants; (viii) the availability of financing and (ix) changes in interest rates and leverage.

Illiquidity of Investments Risk. The investments made by the Fund may be illiquid, and consequently the Fund may not be able to sell such investments at prices that reflect the Investment Adviser’s assessment of their value or the amount originally paid for such investments by the Fund.

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. Financial difficulties of Agents can pose a risk to the Fund.

Media Contact
Lucy Bannon
lbannon@highlandcapital.com 
1-972-419-6272

DALLAS, Dec. 2, 2019 – Highland Income Fund (NYSE: HFRO) (“HFRO” or the “Fund”) today announced its regular monthly dividend on its common stock of $0.0770 per share. The dividend will be payable on December 31, 2019 to shareholders of record at the close of business December 23, 2019.

The Fund is a closed-end fund managed by Highland Capital Management Fund Advisors, L.P. (the “Manager”). The Fund will pursue its investment objective by investing primarily in the following categories of securities and instruments: (i) floating-rate loans and other securities deemed to be floating-rate investments; (ii) 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); and (iii) 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. The investment objective of the Fund is to provide a high level of current income, consistent with the preservation of capital in a registered fund format. The Fund declares and pays dividends of investment income monthly.

Total operating expenses as of the most recent fund semi-annual report are 3.04%. For most recent quarter-end performance please visit www.highlandfunds.com or call 

1-800-357-9167

.

About Highland Income Fund (HFRO)

The Highland Income Fund (“HFRO”) (NYSE:HFRO) is a closed-end fund managed by Highland Capital Management Fund Advisors, L.P., an adviser on the Highland Capital Management alternative investment platform. Launched in 2000, HFRO aims to provide a high level of current income, consistent with preservation of capital. For more information visit www.highlandfunds.com/income-fund.

About Highland Capital Management Fund Advisors, L.P. (HCMFA)

Highland Capital Management Fund Advisors, L.P. (“HCMFA”) is an investment adviser on Highland Capital Management’s multibillion-dollar global alternative investment platform (“Highland”). HCMFA is the adviser to a suite of registered funds, including open-end mutual funds, closed-end funds, and an exchange-traded fund (“ETF”). Covering a range of asset classes and strategies, the funds draw on Highland’s investment capabilities, which include high-yield credit, public equities, real estate, private equity and special situations, structured credit, and sector- and region-specific verticals built around specialized teams. For more information visit www.highlandfunds.com.

Investors should consider the investment objectives, risks, charges and expenses of the Highland Income Fund carefully before investing. This and other information can be found in the Fund’s prospectus, which may be obtained by calling 

1-800-357-9167

 or visiting www.highlandfunds.com. Please read the prospectus carefully before you invest.

Effective May 20, 2019, the Fund changed its name to Highland Income Fund and expanded its investment strategy by removing the Fund’s policy of, under normal market circumstances, investing at least 80% of its net assets in floating-rate loans and other securities deemed to be floating-rate instruments. See the March 20, 2019 press release for further details regarding the Fund’s name change and expanded investment strategy: “Highland Floating Rate Opportunities Fund Announces Name Change to Highland Income Fund“

Effective shortly after close of business on November 3, 2017, Highland Floating Rate Fund converted from an open-end fund to a closed-end fund, and began trading on the NYSE under the symbol HFRO on November 6, 2017. The performance data presented above for periods prior to November 3, 2017 reflects that of Class Z shares of the Fund when it was an open-end fund, HFRZX. The closed-end Fund pursues the same investment objective and strategy as it did before its conversion. The expense ratio is that of Class Z shares of the Fund prior to its conversion.

No assurance can be given that the Fund will achieve its investment objectives.

Shares of closed-end investment companies frequently trade at a discount to net asset value. 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.

Closed-End Fund Risk. The Fund is a closed-end investment company designed primarily for long-term investors and not as a trading vehicle. No assurance can be given that a shareholder will be able to sell his or her shares on the NYSE when he or she chooses to do so, and no assurance can be given as to the price at which any such sale may be effected.

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. Non-payment of scheduled interest and/or principal 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. 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 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.

Real Estate Industry Risk: Issuers principally engaged in real estate industry, including real estate investment trusts, may be subject to risks similar to the risks associated with the direct ownership of real estate, including: (i) changes in general economic and market conditions; (ii) changes in the value of real estate properties; (iii) risks related to local economic conditions, overbuilding and increased competition; (iv) increases in property taxes and operating expenses; (v) changes in zoning laws; (vi) casualty and condemnation losses; (vii) variations in rental income, neighborhood values or the appeal of property to tenants; (viii) the availability of financing and (ix) changes in interest rates and leverage.

Illiquidity of Investments Risk. The investments made by the Fund may be illiquid, and consequently the Fund may not be able to sell such investments at prices that reflect the Investment Adviser’s assessment of their value or the amount originally paid for such investments by the Fund.

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. Financial difficulties of Agents can pose a risk to the Fund.

Media Contact

Lucy Bannon

lbannon@highlandcapital.com

1-972-419-6272

SOURCE Highland Capital Management Fund Advisors, L.P.

Related Links

https://www.highlandfunds.com

DALLAS, Jan. 3, 2020 – Highland Income Fund (NYSE: HFRO) (“HFRO” or the “Fund”) today announced its regular monthly dividend on its common stock of $0.0770 per share. The dividend will be payable on January 31, 2020 to shareholders of record at the close of business January 24, 2020.

The Fund is a closed-end fund managed by Highland Capital Management Fund Advisors, L.P. (the “Manager”). The Fund will pursue its investment objective by investing primarily in the following categories of securities and instruments: (i) floating-rate loans and other securities deemed to be floating-rate investments; (ii) 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); and (iii) 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. The investment objective of the Fund is to provide a high level of current income, consistent with the preservation of capital in a registered fund format. The Fund declares and pays dividends of investment income monthly.

Total operating expenses as of the most recent fund semi-annual report are 3.04%. For most recent quarter-end performance please visit www.highlandfunds.com or call 

1-800-357-9167

.

About Highland Income Fund (HFRO)

The Highland Income Fund (“HFRO”) (NYSE:HFRO) is a closed-end fund managed by Highland Capital Management Fund Advisors, L.P., an adviser on the Highland Capital Management alternative investment platform. Launched in 2000, HFRO aims to provide a high level of current income, consistent with preservation of capital. For more information visit www.highlandfunds.com/income-fund.

About Highland Capital Management Fund Advisors, L.P. (HCMFA)

Highland Capital Management Fund Advisors, L.P. (“HCMFA”) is an investment adviser on Highland Capital Management’s multibillion-dollar global alternative investment platform (“Highland”). HCMFA is the adviser to a suite of registered funds, including open-end mutual funds, closed-end funds, and an exchange-traded fund (“ETF”). Covering a range of asset classes and strategies, the funds draw on Highland’s investment capabilities, which include high-yield credit, public equities, real estate, private equity and special situations, structured credit, and sector- and region-specific verticals built around specialized teams. For more information visit www.highlandfunds.com.

Investors should consider the investment objectives, risks, charges and expenses of the Highland Income Fund carefully before investing. This and other information can be found in the Fund’s prospectus, which may be obtained by calling 

1-800-357-9167

 or visiting www.highlandfunds.com. Please read the prospectus carefully before you invest.

Effective May 20, 2019, the Fund changed its name to Highland Income Fund and expanded its investment strategy by removing the Fund’s policy of, under normal market circumstances, investing at least 80% of its net assets in floating-rate loans and other securities deemed to be floating-rate instruments. See the March 20, 2019 press release for further details regarding the Fund’s name change and expanded investment strategy: “Highland Floating Rate Opportunities Fund Announces Name Change to Highland Income Fund“

Effective shortly after close of business on November 3, 2017, Highland Floating Rate Fund converted from an open-end fund to a closed-end fund, and began trading on the NYSE under the symbol HFRO on November 6, 2017. The performance data presented above for periods prior to November 3, 2017 reflects that of Class Z shares of the Fund when it was an open-end fund, HFRZX. The closed-end Fund pursues the same investment objective and strategy as it did before its conversion. The expense ratio is that of Class Z shares of the Fund prior to its conversion.

No assurance can be given that the Fund will achieve its investment objectives.

Shares of closed-end investment companies frequently trade at a discount to net asset value. 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.

Closed-End Fund Risk. The Fund is a closed-end investment company designed primarily for long-term investors and not as a trading vehicle. No assurance can be given that a shareholder will be able to sell his or her shares on the NYSE when he or she chooses to do so, and no assurance can be given as to the price at which any such sale may be effected.

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. Non-payment of scheduled interest and/or principal 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. 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 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.

Real Estate Industry Risk: Issuers principally engaged in real estate industry, including real estate investment trusts, may be subject to risks similar to the risks associated with the direct ownership of real estate, including: (i) changes in general economic and market conditions; (ii) changes in the value of real estate properties; (iii) risks related to local economic conditions, overbuilding and increased competition; (iv) increases in property taxes and operating expenses; (v) changes in zoning laws; (vi) casualty and condemnation losses; (vii) variations in rental income, neighborhood values or the appeal of property to tenants; (viii) the availability of financing and (ix) changes in interest rates and leverage.

Illiquidity of Investments Risk. The investments made by the Fund may be illiquid, and consequently the Fund may not be able to sell such investments at prices that reflect the Investment Adviser’s assessment of their value or the amount originally paid for such investments by the Fund.

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. Financial difficulties of Agents can pose a risk to the Fund.

Media Contact

Lucy Bannon
lbannon@highlandcapital.com

1-972-419-6272

SOURCE Highland Capital Management Fund Advisors, L.P.

Related Links

https://www.highlandfunds.com

DALLAS, Feb. 3, 2020 — Highland Income Fund (NYSE: HFRO) (“HFRO” or the “Fund”) today announced its regular monthly dividend on its common stock of $0.0770 per share. The dividend will be payable on February 28, 2020 to shareholders of record at the close of business February 21, 2020.

The Fund is a closed-end fund managed by Highland Capital Management Fund Advisors, L.P. (the “Manager”). The Fund will pursue its investment objective by investing primarily in the following categories of securities and instruments: (i) floating-rate loans and other securities deemed to be floating-rate investments; (ii) 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); and (iii) 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. The investment objective of the Fund is to provide a high level of current income, consistent with the preservation of capital in a registered fund format. The Fund declares and pays dividends of investment income monthly.

Total operating expenses as of the most recent fund semi-annual report are 3.04%. For most recent quarter-end performance please visit www.highlandfunds.com or call 

1-800-357-9167

.

About Highland Income Fund (HFRO)

The Highland Income Fund (“HFRO”) (NYSE:HFRO) is a closed-end fund managed by Highland Capital Management Fund Advisors, L.P., an adviser on the Highland Capital Management alternative investment platform. Launched in 2000, HFRO aims to provide a high level of current income, consistent with preservation of capital. For more information visit www.highlandfunds.com/income-fund.

About Highland Capital Management Fund Advisors, L.P. (HCMFA)

Highland Capital Management Fund Advisors, L.P. (“HCMFA”) is an investment adviser on Highland Capital Management’s multibillion-dollar global alternative investment platform (“Highland”). HCMFA is the adviser to a suite of registered funds, including open-end mutual funds, closed-end funds, and an exchange-traded fund (“ETF”). Covering a range of asset classes and strategies, the funds draw on Highland’s investment capabilities, which include high-yield credit, public equities, real estate, private equity and special situations, structured credit, and sector- and region-specific verticals built around specialized teams. For more information visit www.highlandfunds.com.

Investors should consider the investment objectives, risks, charges and expenses of the Highland Income Fund carefully before investing. This and other information can be found in the Fund’s prospectus, which may be obtained by calling 

1-800-357-9167

 or visiting www.highlandfunds.com. Please read the prospectus carefully before you invest.

Effective May 20, 2019, the Fund changed its name to Highland Income Fund and expanded its investment strategy by removing the Fund’s policy of, under normal market circumstances, investing at least 80% of its net assets in floating-rate loans and other securities deemed to be floating-rate instruments. See the March 20, 2019 press release for further details regarding the Fund’s name change and expanded investment strategy: “Highland Floating Rate Opportunities Fund Announces Name Change to Highland Income Fund“

Effective shortly after close of business on November 3, 2017, Highland Floating Rate Fund converted from an open-end fund to a closed-end fund, and began trading on the NYSE under the symbol HFRO on November 6, 2017. The performance data presented above for periods prior to November 3, 2017 reflects that of Class Z shares of the Fund when it was an open-end fund, HFRZX. The closed-end Fund pursues the same investment objective and strategy as it did before its conversion. The expense ratio is that of Class Z shares of the Fund prior to its conversion.

No assurance can be given that the Fund will achieve its investment objectives.

Shares of closed-end investment companies frequently trade at a discount to net asset value. 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.

Closed-End Fund Risk. The Fund is a closed-end investment company designed primarily for long-term investors and not as a trading vehicle. No assurance can be given that a shareholder will be able to sell his or her shares on the NYSE when he or she chooses to do so, and no assurance can be given as to the price at which any such sale may be effected.

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. Non-payment of scheduled interest and/or principal 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. 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 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.

Real Estate Industry Risk: Issuers principally engaged in real estate industry, including real estate investment trusts, may be subject to risks similar to the risks associated with the direct ownership of real estate, including: (i) changes in general economic and market conditions; (ii) changes in the value of real estate properties; (iii) risks related to local economic conditions, overbuilding and increased competition; (iv) increases in property taxes and operating expenses; (v) changes in zoning laws; (vi) casualty and condemnation losses; (vii) variations in rental income, neighborhood values or the appeal of property to tenants; (viii) the availability of financing and (ix) changes in interest rates and leverage.

Illiquidity of Investments Risk. The investments made by the Fund may be illiquid, and consequently the Fund may not be able to sell such investments at prices that reflect the Investment Adviser’s assessment of their value or the amount originally paid for such investments by the Fund.

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. Financial difficulties of Agents can pose a risk to the Fund.

Media Contact
Lucy Bannon
lbannon@highlandcapital.com

1-972-419-6272

SOURCE Highland Capital Management Fund Advisors, L.P.

Related Links

https://www.highlandfunds.com

DALLAS, March 2, 2020 — Highland Income Fund (NYSE: HFRO) (“HFRO” or the “Fund”) today announced its regular monthly dividend on its common stock of $0.0770 per share. The dividend will be payable on March 31, 2020 to shareholders of record at the close of business March 24, 2020.

The Fund is a closed-end fund managed by Highland Capital Management Fund Advisors, L.P. (the “Manager”). The Fund will pursue its investment objective by investing primarily in the following categories of securities and instruments: (i) floating-rate loans and other securities deemed to be floating-rate investments; (ii) 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); and (iii) 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. The investment objective of the Fund is to provide a high level of current income, consistent with the preservation of capital in a registered fund format. The Fund declares and pays dividends of investment income monthly.

Total operating expenses as of the most recent fund semi-annual report are 3.26%. For most recent quarter-end performance please visit www.highlandfunds.com or call 1-800-357-9167.

About Highland Income Fund (HFRO)

The Highland Income Fund (“HFRO”) (NYSE:HFRO) is a closed-end fund managed by Highland Capital Management Fund Advisors, L.P., an adviser on the Highland Capital Management alternative investment platform. Launched in 2000, HFRO aims to provide a high level of current income, consistent with preservation of capital. For more information visit www.highlandfunds.com/income-fund.

About Highland Capital Management Fund Advisors, L.P. (HCMFA)

Highland Capital Management Fund Advisors, L.P. (“HCMFA”) is an investment adviser on Highland Capital Management’s multibillion-dollar global alternative investment platform (“Highland”). HCMFA is the adviser to a suite of registered funds, including open-end mutual funds, closed-end funds, and an exchange-traded fund (“ETF”). Covering a range of asset classes and strategies, the funds draw on Highland’s investment capabilities, which include high-yield credit, public equities, real estate, private equity and special situations, structured credit, and sector- and region-specific verticals built around specialized teams. For more information visit www.highlandfunds.com.

Investors should consider the investment objectives, risks, charges and expenses of the Highland Income Fund carefully before investing. This and other information can be found in the Fund’s prospectus, which may be obtained by calling 

1-800-357-9167

 or visiting www.highlandfunds.com. Please read the prospectus carefully before you invest.

Effective May 20, 2019, the Fund changed its name to Highland Income Fund and expanded its investment strategy by removing the Fund’s policy of, under normal market circumstances, investing at least 80% of its net assets in floating-rate loans and other securities deemed to be floating-rate instruments. See the March 20, 2019 press release for further details regarding the Fund’s name change and expanded investment strategy: “Highland Floating Rate Opportunities Fund Announces Name Change to Highland Income Fund“

Effective shortly after close of business on November 3, 2017, Highland Floating Rate Fund converted from an open-end fund to a closed-end fund, and began trading on the NYSE under the symbol HFRO on November 6, 2017. The performance data presented above for periods prior to November 3, 2017 reflects that of Class Z shares of the Fund when it was an open-end fund, HFRZX. The closed-end Fund pursues the same investment objective and strategy as it did before its conversion. The expense ratio is that of Class Z shares of the Fund prior to its conversion.

No assurance can be given that the Fund will achieve its investment objectives.

Shares of closed-end investment companies frequently trade at a discount to net asset value. 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.

Closed-End Fund Risk. The Fund is a closed-end investment company designed primarily for long-term investors and not as a trading vehicle. No assurance can be given that a shareholder will be able to sell his or her shares on the NYSE when he or she chooses to do so, and no assurance can be given as to the price at which any such sale may be effected.

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. Non-payment of scheduled interest and/or principal 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. 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 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.

Real Estate Industry Risk: Issuers principally engaged in real estate industry, including real estate investment trusts, may be subject to risks similar to the risks associated with the direct ownership of real estate, including: (i) changes in general economic and market conditions; (ii) changes in the value of real estate properties; (iii) risks related to local economic conditions, overbuilding and increased competition; (iv) increases in property taxes and operating expenses; (v) changes in zoning laws; (vi) casualty and condemnation losses; (vii) variations in rental income, neighborhood values or the appeal of property to tenants; (viii) the availability of financing and (ix) changes in interest rates and leverage.

Illiquidity of Investments Risk. The investments made by the Fund may be illiquid, and consequently the Fund may not be able to sell such investments at prices that reflect the Investment Adviser’s assessment of their value or the amount originally paid for such investments by the Fund.

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. Financial difficulties of Agents can pose a risk to the Fund.

Media Contact

Lucy Bannon

lbannon@highlandcapital.com

1-972-419-6272

SOURCE Highland Capital Management Fund Advisors, L.P.

Related Links

https://www.highlandfunds.com

DALLAS, March 10, 2020 — Highland Income Fund (NYSE: HFRO) (“HFRO” or the “Fund”) today declared an initial pro-rated dividend for its 5.375% Series A Cumulative Preferred Shares (NYSE:HFRO/PA) of $0.3359375 per share. The dividend will be payable on March 31, 2020 to Series A Preferred shareholders of record at the close of business March 24, 2020.  Dividends on Series A Preferred Shares will be payable quarterly on March 31, June 30, September 30 and December 31 at the rate of 5.375% per annum to holders of record at the close of business on the fifth preceding business day.

The Fund is a closed-end fund managed by Highland Capital Management Fund Advisors, L.P. (the “Manager”). The Fund announced the pricing of the Series A Preferred Shares offering on July 29, 2019. The preferred shares were issued on July 29, 2019 (the “Issuance Date”) and commenced trading on July 30, 2019. The initial dividend accumulated from the Issuance Date.

The Series A Preferred shares, which are rated A1 by Moody’s Investors Service, are perpetual, non-callable for five years, and have a liquidation preference of $25 per share. Dividends and distributions are paid at the rate of 5.375% per annum to Series A Preferred shareholders, as outlined in the registration statement and supplemental materials filed with the Securities and Exchange Commission in conjunction with the Series A Cumulative Preferred Shares offering.

This press release is not an offering. The Fund’s prospectus supplement relating to the Series A Preferred shares and the Fund’s base prospectus contain this and additional information about the Fund and the Series A Preferred shares, and should be read carefully before investing. 

Total operating expenses as of the most recent fund semi-annual report are 3.26%. For most recent quarter-end performance please visit www.highlandfunds.com or call 1-800-357-9167.

About the Highland Income Fund

The Highland Income Fund (NYSE:HFRO) is a closed-end fund managed by Highland Capital Management Fund Advisors, L.P., an adviser on the Highland Capital Management alternative investment platform. Launched in 2000, HFRO aims to provide a high level of current income, consistent with preservation of capital. For more information visit www.highlandfunds.com/income-fund.

About Highland Capital Management Fund Advisors, L.P.

Highland Capital Management Fund Advisors, L.P. (“HCMFA”) is an investment adviser on Highland Capital Management’s multibillion-dollar global alternative investment platform (“Highland”). HCMFA is the adviser to a suite of registered funds, including open-end mutual funds, closed-end funds, and an exchange-traded fund (“ETF”). Covering a range of asset classes and strategies, the funds draw on Highland’s investment capabilities, which include high-yield credit, public equities, real estate, private equity and special situations, structured credit, and sector- and region-specific verticals built around specialized teams. For more information visit www.highlandfunds.com.

Investors should consider the investment objectives, risks, charges and expenses of the Highland Income Fund carefully before investing. This and other information can be found in the Fund’s prospectus, which may be obtained by calling 1-800-357-9167 or visiting www.highlandfunds.com. Please read the prospectus carefully before you invest.

Effective May 20, 2019, the Fund changed its name to Highland Income Fund and expanded its investment strategy by removing the Fund’s policy of, under normal market circumstances, investing at least 80% of its net assets in floating-rate loans and other securities deemed to be floating-rate instruments. See the March 20, 2019 press release for further details regarding the Fund’s name change and expanded investment strategy: “Highland Floating Rate Opportunities Fund Announces Name Change to Highland Income Fund“

Effective shortly after close of business on November 3, 2017, Highland Floating Rate Fund converted from an open-end fund to a closed-end fund, and began trading on the NYSE under the symbol HFRO on November 6, 2017. The performance data presented above for periods prior to November 3, 2017 reflects that of Class Z shares of the Fund when it was an open-end fund, HFRZX. The closed-end Fund pursues the same investment objective and strategy as it did before its conversion. The expense ratio is as of the most recent fund semi-annual report.

No assurance can be given that the Fund will achieve its investment objectives.

Shares of closed-end investment companies frequently trade at a discount to net asset value. 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.

Closed-End Fund Risk. The Fund is a closed-end investment company designed primarily for long-term investors and not as a trading vehicle. No assurance can be given that a shareholder will be able to sell his or her shares on the NYSE when he or she chooses to do so, and no assurance can be given as to the price at which any such sale may be effected.

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. Non-payment of scheduled interest and/or principal 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. 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 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.

Real Estate Industry Risk: Issuers principally engaged in real estate industry, including real estate investment trusts, may be subject to risks similar to the risks associated with the direct ownership of real estate, including: (i) changes in general economic and market conditions; (ii) changes in the value of real estate properties; (iii) risks related to local economic conditions, overbuilding and increased competition; (iv) increases in property taxes and operating expenses; (v) changes in zoning laws; (vi) casualty and condemnation losses; (vii) variations in rental income, neighborhood values or the appeal of property to tenants; (viii) the availability of financing and (ix) changes in interest rates and leverage.

Illiquidity of Investments Risk. The investments made by the Fund may be illiquid, and consequently the Fund may not be able to sell such investments at prices that reflect the Investment Adviser’s assessment of their value or the amount originally paid for such investments by the Fund.

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. Financial difficulties of Agents can pose a risk to the Fund.

Media Contact

Lucy Bannon

lbannon@highlandcapital.com

1-972-419-6272

SOURCE Highland Capital Management Fund Advisors, L.P.

Related Links

https://www.highlandfunds.com