Fund Overview

The Highland iBoxx Senior Loan ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Markit iBoxx Liquid Leveraged Loan Index (the “Underlying Index”).

  • Rules based index
  • Consists of approximately 100 of the largest, most liquid leveraged loans
  • Measured by the number of active market participants trading the security and the dollar face amount of outstanding senior loans issued
  • Loans eligible for inclusion in the Underlying Index are measured by type, size, liquidity, spread, credit rating and minimum time to maturity.

What’s in a Name?

Senior: Senior bank loans are debt obligations of a company and are generally paid before other creditors and equity
Secured: Secured by a first lien claim on assets of the company
Floating Rate Loans: Base rate plus a spread with a potential income stream that floats with interest rates

Opportunities in Senior Bank Loans

High Yield: Potential for high yield given coupon must compensate investors for credit risk
Lower Duration: Lower duration given floating rate nature of the assets
Diversification: Bank loans have exhibited historically low correlation to other risk assets
Transparency & Liquidity: Large-capitalized liquid loans in NASDAQ exchanged-traded ETF Structure

Bank Loans have had two negative years in the last 20 years

Email 1 Chart

Source: Credit Suisse Leveraged Loan Index 12/31/2015

As of 01/31/2017 MonthlyQuarterly
YTD 1-YR 3-YR Since Inception
SNLN (NAV)-0.09%8.67%1.95%2.93%
SNLN (Market Price)-0.04%8.86%1.96%2.96%
Markit iBoxx Liquid Leveraged Loan Index6.27%2.16%2.10%2.76%

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted.

The fund’s NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. The market price is the most recent price at which the fund was traded.

Quality Allocation²

  • BBB
  • BB
  • B+
  • B
  • CCC
  • Not Rated

Maturity

  • 0 - 1 years
  • 1 - 3 years
  • 3 - 5 years
  • 5 - 7 years
  • 7 - 10 years
  • 10+ years

Asset Allocation

  • Loans
  • Cash and Equivalents
  • Other Assets
Top Holdings as of: 02/24/2017 Market ValueWeight
CLEAR CHANNEL COMM LOAN D$10,280,8092.16%
PETSMART, INC.$9,868,1502.07%
DELTA 2 (FORMULA ONE) B3$9,515,5862.00%
INTELSAT JACKSON B2$9,309,4781.95%
UNIVISION COMMUNICATIONS$8,994,0041.89%
PETCO TL B 1/26/26$8,882,3851.86%
Multiplan Inc$8,871,5461.86%
CHS COMMUNITY$8,624,5491.81%
BMC SOFTWARE FINANCE INC$8,519,0991.79%
PPD TERM LOAN B 08/18/22$8,500,3721.78%

View All Fund Holdings » Holdings are subject to change.

Floating Rate Loans Education Guide

Diversification of Floating Rate Loans

An Asset Class for Defensive Times

Understanding the U.S. Senior Secured Loan Market

Higher Yields in a Low Yield World

Signal or Noise? New Quarterly Investment Newsletter by Mark Okada

Fund Facts
Ticker SymbolSNLN
CUSIP430101774
Inception11/06/2012
Index SymbolIBXXLLTR
Index Provider
Markit iBoxx Liquid Loan Index
Gross Expense Ratio0.77%
Net Expense Ratio10.55%
ExchangeNASDAQ
Fund AUM (02/23/2017)
Total Net Assets$477 M
Historical Returns & NAV (02/23/2017)
Net Asset Value(NAV)$18.63
Market Price$18.63
Bid/Ask Midpoint Price$18.63
Premium/Discount($)$-0.01
Prem/Disc to NAV Chart
Fund Characteristics (01/31/2017)
Weighted Avg Maturity (yrs)4.81
Yield to Maturity (%)4.46
Days to Reset35.1
Weighted Avg Coupon (%)4.04
30 Day SEC Yield (%)4.39
Unsubsidized 30 Day Yield (%)4.24
Number of Holdings138

The Highland/iBoxx Senior Loan ETF is distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Highland Capital Management or any of its affiliates. Check the background of SIDCO on FINRA’s BrokerCheck

Carefully consider the investment objectives, risk factors, charges, and expenses of the Fund before investing. This and additional information about the Fund can be found in the full or summary prospectus, which may be obtained by calling 1-855-799-4757 or by visiting the Literature tab above. Read the prospectus carefully before investing.

1. Fee waivers are contractual and in effect through at least October 31, 2017. In the absence of current fee waivers, total return would be reduced.

2. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). The rating categories reflected are issued by Standards and Poor’s, a Nationally Recognized Statistical Rating Organization (“NRSRO’). The ratings used were those for the specific position or debt issuer held in the Fund as of the date of the latest quarterly fact sheet. Quality ratings reflect the credit quality of the underlying positions in the fund portfolio and not the fund itself. A fund’s portfolio and composition is subject to change.

Leveraged Loans are loans to companies that typically already have a high amount of debt and are often characterized by lower credit ratings or higher interest rates.

Investing involves risk, including the possible loss of principal.

The price used to calculate market returns (“Market Price”) of the Fund generally is determined using the midpoint between the bid and the ask on the primary securities exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. The Fund’s Market Price may be at, above or below its NAV.

Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

Investing involves risk, including the possible loss of principal. There is no guarantee the Fund will meet its investment objectives. The risks associated with Senior Loans are similar to the risks of below investment grade securities, although Senior Loans are typically senior and secured in contrast to other below investment grade securities, which are often subordinated and unsecured. Narrowly focused funds typically exhibit higher volatility. The Fund is subject to interest rate risk and will decline in value as interest rates rise. The Fund is non-diversified, and an investment in the Fund could fluctuate in value more than an investment in a diversified fund. The Fund may invest in derivatives which are often more volatile than other investments and may magnify the Fund’s gains or losses.

All registered investment companies, including the Highland Funds, are obliged to distribute portfolio gains to shareholders at year’s end regardless of performance. Trading the Highland iBoxx Senior Loan ETF will also generate tax consequences and transaction expenses. The information provided is not intended to be tax advice. Tax consequences of dividend distributions may vary by individual taxpayer. There is no guarantee that dividends will be paid. To receive the distribution, you must be a registered shareholder of the ETF on the record date, and must have placed the ETF trade prior to the ex-date. Distributions are paid to shareholders on the payable date. Past distributions are not indicative of future trends. Please consult your tax professional or financial advisor for more information regarding your tax situation.

The Markit iBoxx Liquid Leveraged Loan Index has been licensed for use by Highland Capital Management Fund Advisors. The Highland iBoxx Senior Loan ETF is not sponsored, endorsed, issued, sold, or promoted by the Markit iBoxx Liquid Leveraged Loan Index, nor does this company make any representations regarding the advisability of investing in the Highland iBoxx Senior Loan ETF.

Glossary: Click for important terms and definitions
 
Data Source: SEI

The Highland iBoxx Senior Loan ETF is distributed by SEI Investments Distribution Co., which is not affiliated with Highland Capital Management or any of its affiliates.

Premium/Discount to NAV

As of: TICKER NAV CLOSE BID/ASK MID PT PREMIUM/DISCOUNT
Quarter:

Explanation of Premium/Discount:

Premium is when an ETF’s market price (selling or purchase price) is greater than its calculated NAV. So when the ETF’s price is above the NAV, the ETF is said to trade at a “premium” – the ETF is trading higher than what the underlying holdings are worth.

Discount is when an ETF’s market price (selling or purchase price) is less than its calculated NAV. So when the ETF’s price is lower than the NAV, the ETF is said to be at a “discount” – the ETF is valued less than the fund’s overall holdings.

Shareholders may pay more than net asset value when they buy Fund shares and receive less than net asset value when they sell those shares, because shares are bought and sold at current market prices.

The Premium/Discount chart demonstrates the difference between the daily market price of shares of the Fund and the Fund's net asset value (NAV). The daily market price is calculated using the Midpoint price which is the midpoint between the Ask price and the Bid price at the time the NAV is calculated (generally 4 p.m. eastern time). The vertical axis of the chart shows the premium or discount of the Midpoint price as a percentage of the NAV. The horizontal axis shows the number of trading days covered by the chart, and each bar in the chart demonstrates how many days the Fund traded within the given premium/discount range. The data presented in the chart and table above represent past performance and cannot be used to predict future results.