Highland Opportunities and Income Fund Announces the Regular Monthly Distribution

Rhea-AI Summary

Highland Opportunities and Income Fund (HFRO) announced a regular monthly distribution of $0.0385 per share, payable on February 29, 2024, to shareholders of record at the close of business February 22, 2024. The Fund seeks growth of capital and income by investing in various categories of securities and instruments. The distribution rate was adjusted on January 4, 2024, to align with the Fund's current portfolio and investment objective.

Financial Analyst

The announcement of the Highland Opportunities and Income Fund's monthly distribution of $0.0385 per share is a critical piece of information for current and potential investors. Distributions are a key factor in the total return on investment, especially for income-focused funds. The ability of HFRO to maintain or adjust its distribution rate can be indicative of its operational efficiency and underlying asset performance. Investors often look at the consistency and sustainability of distributions as a sign of the fund's health and management's confidence in cash flow generation.

Furthermore, the fund's strategy to invest in a diverse range of securities, including REITs and structured products, suggests a broad exposure to various market conditions. The mix of fixed-rate investments with floating rate loans is particularly noteworthy, as it can provide a natural hedge against interest rate fluctuations. The performance of these underlying assets will directly affect the fund's ability to sustain its distributions. Thus, monitoring the quality and performance of the fund's portfolio is essential for assessing the risk and return profile of the investment.

Market Research Analyst

The HFRO's investment strategy, which includes a combination of real estate securities, corporate bonds and derivatives, is reflective of a broader trend in the closed-end fund market to seek diversified income sources. The mention of distressed securities and mezzanine debt highlights a higher risk tolerance in pursuit of yield, which may appeal to certain investor segments. The fund's performance is thus not only a factor of real estate market conditions but also of the credit markets and overall economic health.

Investors should be aware of the implications of the fund's investment in derivatives and structured products. These instruments can introduce additional layers of complexity and risk, including credit, liquidity and market risks. Insight into the fund's risk management strategies for these investments would be valuable for stakeholders to understand the potential volatility and impact on the fund's capital growth objective.

DALLAS, Feb. 1, 2024 /PRNewswire/ -- The Highland Opportunities and Income Fund (NYSE: HFRO) ("HFRO" or the "Fund") today announced its regular monthly distribution on its common stock of $0.0385 per share. The distribution will be payable on February 29, 2024, to shareholders of record at the close of business February 22, 2024.

The Fund is a closed-end fund that seeks to provide growth of capital along with income in a registered fund format. The Fund pursues its investment objective by investing directly and indirectly (e.g., through derivatives that are the economic equivalent of direct investments) in the following categories of securities and instruments: (i) 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; (ii) 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; and (iii) floating rate loans and other securities deemed to be floating rate investments.

The Fund declares and pays distributions monthly.

On January 4, 2024, the Fund adjusted the monthly distribution rate to align the distribution with the Fund's current portfolio and investment objective. Additional information on the distribution can be found on the Fund's website at http://www.nexpointassetmgmt.com/opportunities-income-fund.

About the Highland Opportunities and Income Fund

The Highland Opportunities and Income Fund (NYSE: HFRO) is a closed-end fund managed by NexPoint Asset Management, L.P. For more information visit nexpointassetmgmt.com/opportunities-income-fund.

Effective June 15, 2023, the Fund changed its name to the Highland Opportunities and Income Fund to reflect a new investment objective. Under the modified investment objective, the Fund will pursue growth of capital along with income. More information can be found in the press release announcing the changes, issued on May 16, 2023.

About NexPoint Asset Management, L.P.

NexPoint Asset Management, L.P. is an SEC-registered investment adviser. It is the adviser to a suite of registered funds, including open-end mutual funds, closed-end funds, and an exchange-traded fund. For more information visit nexpointassetmgmt.com.

Investors should consider the investment objectives, risks, charges, and expenses of the Highland Opportunities and 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 nexpointassetmgmt.com. Please read the prospectus carefully before you invest.

The distribution may include a return of capital. Please refer to the 19(a)-1 Source of Distribution Notice on the NexPoint Asset Management website for Section 19 notices that provide estimated amounts and sources of the Fund's distributions, which should not be relied upon for tax reporting purposes.

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 affected.

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 NexPoint 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.

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.

CONTACTS
Investor Relations
Kristen Thomas
IR@nexpoint.com
Media Relations
Prosek Partners for NexPoint
Pro-nexpoint@prosek.com

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SOURCE Highland Opportunities and Income Fund

What is the monthly distribution announced by Highland Opportunities and Income Fund (HFRO)?

The Fund announced a regular monthly distribution of $0.0385 per share.

When will the distribution be payable?

The distribution will be payable on February 29, 2024.

What is the Fund's investment objective?

The Fund seeks growth of capital and income by investing in various categories of securities and instruments.

When was the distribution rate adjusted?

The distribution rate was adjusted on January 4, 2024, to align with the Fund's current portfolio and investment objective.

Where can additional information on the distribution be found?

Additional information can be found on the Fund's website at http://www.nexpointassetmgmt.com/opportunities-income-fund.