JONATHAN LAMENSDORF, CFA
- Seek to achieve positive absolute returns with reduced correlation to equity and fixed income markets.
- Invest in publicly announced mergers to capture the spread between the current price of the target company and the announced offer price for that company.
- Alternative investment that seeks to reduce overall portfolio volatility and correlation.
- Potential alternative or complement to fixed income given similar levels of risk and volatility.
|Fund NAV (As of Feb 23, 2017)|
|HMEAX (Class A)||$20.67|
|HMECX (Class C)||$20.60|
|HMEZX (Class Z)||$20.75|
|Fund AUM (As of Feb 23, 2017)|
|Total Net Assets||$26.03 M|
|VIEW FULL PERFORMANCE|
|Class A||Class C||Class Z|
|Gross Expense Ratio||2.94%||3.59%||2.59%|
|Net Expense Ratio1||2.64%||3.29%||2.29%|
Historical Returns & NAV
|As of 02/23/2017||Class A||Class C||Class Z|
|Net Asset Value (NAV)||$20.67||$20.60||$20.75|
|Daily NAV Change ($)||$0.03||$0.03||$0.03|
|Daily NAV Change (%)||0.15%||0.15%||0.14%|
|As of 01/31/2017 MonthlyQuarterly||Class A||Class A (w/sales charge)||Class C||Class Z|
|Year To Date||0.15%||-5.34%||0.10%||0.15%|
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.
On May 12, 2016, the Predecessor Fund transferred its assets to the Fund in exchange for the Fund’s Class Z shares. The investment policies, objectives, guidelines and restrictions of the Fund are in all material respects equivalent to those of the Predecessor Fund. In addition, the Predecessor Fund’s portfolio manager is the current portfolio manager of the Fund. As a mutual fund registered under the 1940 Act, the Fund is subject to certain restrictions under the 1940 Act and the Internal Revenue Code of 1986, as amended (the “Code”) to which the Predecessor Fund was not subject. Had the Predecessor Fund been registered under the 1940 Act and been subject to the provisions of the 1940 Act and the Code, its investment performance could have been adversely affected, but these restrictions are not expected to have a material effect on the Fund’s investment program.
The Predecessor Fund did not have distribution policies. The Predecessor Fund was an unregistered Delaware limited partnership and did not qualify as a regulated investment company for federal income tax purposes.
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 total annual operating expenses of the Fund are Class A 2.94%, Class C 3.59%, Class Z 2.59%. The Adviser has contractually agreed to limit the total annual operating expenses (exclusive of fees paid by the Fund pursuant to its distribution plan under Rule 12b-1 under the Investment Company Act of 1940, as amended (the “1940 Act”), taxes, dividend expenses on short sales, interest payments, brokerage commissions and other transaction costs, acquired fund fees and expenses, and extraordinary expenses (collectively, the “Excluded Expenses”)) of the Fund to 1.50% of average daily net assets attributable to any class of the Fund (the “Expense Cap”). The Expense Cap will continue through at least October 31, 2017 and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees. Under the expense limitation agreement, the Adviser may recoup waived and/or reimbursed amounts with respect to the Fund within thirty-six months of the date such amounts were waived or reimbursed, provided the Fund’s total annual operating expenses, including such recoupment, do not exceed the Expense Cap in effect at the time of such waiver/ reimbursement. Class A Max Sales Charge: 5.50%. 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.
*The maximum sales charge for Class A shares is 5.50%.
Equity Securities Risk. Equity securities, such as common stocks, are subject to market, economic and business risks that may cause their prices to fluctuate.
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.
Hedging Risk. Although intended to limit or reduce investment risk, hedging strategies may also limit or reduce the potential for profit. There is no assurance that hedging strategies will be successful.
Market Risk. The Fund’s share price will fluctuate with changes in the market value of its portfolio securities. Many factors can affect this value and you may lose money by investing in the Fund.
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.
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.
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 net asset value (“NAV”) of the Fund generally to decline faster than it would otherwise.
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 Highland’s ability to achieve its investment objective. Highland may be incorrect in its assessment of the intrinsic value of companies whose securities the Fund holds, which may result in a decline in the value of Fund shares.
Source: State Street Bank and Trust Company
Highland Funds’ mutual funds are distributed by Highland Capital Funds Distributor