DALLAS, April 2, 2020 /PRNewswire/ -- 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 April 30,
2020 to shareholders of record at the close of business
April 23, 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
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.
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
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
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.
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SOURCE Highland Capital Management Fund Advisors, L.P.