JAMES DONDERO, CFA
James Dondero is Co-founder and President of Highland Capital Management, LP (an alternative asset manager specializing in high-yield fixed income investments). Jim has over 30 years of experience in the credit markets. Prior to founding Highland in 1993, Jim served as Chief Investment Officer of Protective Life’s GIC subsidiary and helped grow the business from concept to over $2 billion between 1989 and 1993. His portfolio management experience includes mortgage-backed securities, investment grade corporates, leveraged bank loans, high-yield bonds, emerging market debt, derivatives, preferred stocks and common stocks. From 1985 to 1989, he managed approximately $1 billion in fixed income funds for American Express. Prior to American Express, he completed the financial training program at JP Morgan. Jim received a BS in Commerce (Accounting and Finance) from the University of Virginia. Jim is a Certified Public Accountant, a Certified Managerial Accountant, and a Chartered Financial Analyst. He currently serves as Chairman for CCS Medical and NexBank and serves on the Board of Directors of American Banknote Corporation, Cornerstone Healthcare Group and Metro-Goldwyn-Mayer.
Partner and Head of Credit Research
Mr. Parker is Partner and Head of Credit at Highland. Mr. Parker is responsible for managing the Credit Team/Platform. Prior to his current role, Mr. Parker was a Portfolio Manager covering a number of the industrial verticals, as well as parts of Technology, Media and Telecommunications; he also worked as a Senior Portfolio Analyst on the Distressed & Special Situations investment team. Prior to joining Highland in March 2007, Mr. Parker was a Senior Associate at Hunt Special Situations Group, L.P., a private equity group focused on distressed and special situation investing. Mr. Parker was responsible for sourcing, executing and monitoring control private equity investments across a variety of industries. Prior to joining Hunt in 2004, Mr. Parker was an analyst at BMO Merchant Banking, a private equity group affiliated with the Bank of Montreal (“BMO”). While at BMO, Mr. Parker completed a number of leveraged buyouts and mezzanine investment transactions. Prior to joining BMO, Mr. Parker worked in sales and trading for First Union Securities and Morgan Stanley. Mr. Parker received an MBA with concentrations in Finance, Strategy and Entrepreneurship from the University of Chicago Booth School of Business and a BA in Economics and Business from the Virginia Military Institute. Mr. Parker serves on the Board of Directors of Euramax Holdings, Inc., TerreStar Corporation, JHT Holdings, Inc., and a non-profit organization, the Juvenile Diabetes Research Foundation (Dallas chapter).
The Highland Opportunistic Credit Fund seeks to achieve high total returns while attempting to minimize losses.
|Fund NAV (As of Feb 23, 2017)|
|HNRAX (Class A)||$4.36|
|HNRCX (Class C)||$4.39|
|HNRZX (Class Z)||$4.34|
|Fund AUM (As of Feb 23, 2017)|
|Total Net Assets||$89.91 M|
|VIEW FULL PERFORMANCE|
|Class A||Class C||Class Z|
|Gross Expense Ratio||2.3%||2.8%||1.95%|
|Net Expense Ratio1||1.27%||1.77%||0.91%|
Historical Returns & NAV
|As of 02/23/2017||Class A||Class C||Class Z|
|Net Asset Value (NAV)||$4.36||$4.39||$4.34|
|Daily NAV Change ($)||$-0.01||$0.00||$-0.01|
|Daily NAV Change (%)||-0.23%||0.00%||-0.23%|
|As of 01/31/2017 MonthlyQuarterly||Class A||Class A (w/sales charge)||Class C||Class Z|
|Year To Date||2.46%||-1.06%||2.41%||2.50%|
On February 7, 2017 the shareholders of Highland Opportunistic Credit Fund, a series of Highland Funds I (the “Selling Fund”), approved the reorganization of the Selling Fund into NexPoint Opportunistic Credit Fund (the “Buying Fund”) (the “Reorganization”). The Buying Fund, unlike the Selling Fund, is not obligated to redeem its shares each business day at approximately their net asset value (“NAV”). Instead, the Buying Fund is a so-called “interval fund” that has adopted a fundamental policy to make quarterly repurchase offers at NAV (less any repurchase fee) for no less than 5% of its outstanding shares. There is no guarantee that shareholders will be able to sell all of the shares they desire in a quarterly repurchase offer.
You may purchase shares of the Selling Fund until close of business on March 23, 2017. It is expected that the Reorganization will take place on or about March 27, 2017. Following the Reorganization, Selling Fund shareholders will hold shares of the Buying Fund. Purchases of the Buying Fund are expected to commence on March 27, 2017. The foregoing is not an offer to sell, nor a solicitation of an offer to buy, shares of the Buying Fund or Selling Fund, nor is it a solicitation of any proxy. For more information regarding the Reorganization, please call 1-877-665-1287. You can also view the proxy statement/prospectus detailing the proposed Reorganization on the Highland Funds website at www.highlandfunds.com or on the U.S. Securities and Exchange Commission’s website at www.sec.gov.
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. The Advisor has contractually agreed to limit the total annual operating expenses of the Fund to 0.90% of average daily net assets of the Fund. The expense cap will continue through at least October 31, 2016.
*The maximum sales charge for Class A shares is 3.50%.
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.
Currency Risk. The risk that the values of foreign investments may be affected by changes in the currency rates or exchange control regulations.
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.
Derivatives Risk. Derivatives, such as futures and options, 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. Derivative contracts may expire worthless and the use of derivatives may result in losses to the Fund.
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.
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.
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.
Source: State Street Bank and Trust Company
Highland Funds’ mutual funds are distributed by Highland Capital Funds Distributor