Highland Global Allocation Fund Declares Monthly Distributions of $0.085 Per Share
Rhea-AI Summary
Highland Global Allocation Fund (NYSE:HGLB) declared monthly distributions of $0.085 per share, payable for January through March 2026. Under the Fund's level distribution policy, the annual distribution rate was reset to an amount equal to 8.5% of the average NAV per share calculated from the final five trading days of the 2025 calendar year.
The Fund listed ex‑date, record date and payable date for each distribution: January 23, 2026 (payable Jan 30), February 20, 2026 (payable Feb 27) and March 24, 2026 (payable Mar 31).
Positive
- $0.085 monthly distribution declared
- Annual distribution rate reset to 8.5% of average NAV (final 5 trading days of 2025)
Negative
- Distributions declared only for January–March 2026, not announced beyond March
Key Figures
Market Reality Check
Peers on Argus
Peers showed mixed moves: EHI -0.62%, FT -0.12%, MAV 0.00%, MPV +3.56%, NXG -0.94%, indicating stock-specific factors for HGLB.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 01 | Distribution declaration | Positive | +9.6% | Raised visibility on Q4 2025 monthly distributions at 8.5% of NAV. |
The last distribution announcement with an 8.5% NAV-based payout coincided with a strong positive price reaction.
On Oct 1, 2025, HGLB declared monthly distributions of $0.088 per share for Q4 2025, based on an annual distribution rate of 8.5% of average year-end NAV, and the stock moved +9.59% over 24 hours. Today’s news maintains the 8.5% NAV-based level distribution policy but resets the monthly amount to $0.085 per share for January–March 2026, reflecting an updated average NAV for the final five trading days of 2025.
Market Pulse Summary
This announcement details HGLB’s continued level distribution policy, setting the annual rate at 8.5% of average year-end NAV and declaring monthly payouts of $0.085 per share for January–March 2026. Compared with the prior $0.088 monthly distributions in late 2025, investors can track how payout levels evolve with NAV. Key metrics to monitor include NAV trends, coverage of distributions, and any future changes in the policy rate.
Key Terms
net asset value financial
ex-date financial
AI-generated analysis. Not financial advice.
The following dates apply to the distributions declared:
Ex-Date | Record Date | Payable Date |
January 23, 2026 | January 23, 2026 | January 30, 2026 |
February 20, 2026 | February 20, 2026 | February 27, 2026 |
March 24, 2026 | March 24, 2026 | March 31, 2026 |
About the Level Distribution Policy
In March 2019, the Fund's Board of Trustees (the "Board") approved a level distribution policy (the "Level Distribution Policy") under which the Fund makes monthly distributions to stockholders at a constant and fixed (but not guaranteed) rate that will reset annually to a rate calculated based on the average of the Fund's NAV per share (the "Distribution Amount"), as reported for the final five trading days of the month preceding the announcement of distributions. The Distribution Amount applicable to Q1 2026 was reset based upon the results of the distribution rate calculation. The Distribution Amount applicable for future periods may be reset based upon the results of the distribution rate calculation.
There can be no guarantee that the Level Distribution Policy will be successful in its goals. The Fund's ability to maintain a stable level of distributions to shareholders will depend on a number of factors, including changes in the financial market, market interest rates, and performance of overall equity and fixed-income markets. As portfolio and market conditions change, the ability of the Fund to continue to make distributions in accordance with the Level Distribution Policy may be affected.
Shareholders have the option of reinvesting distributions in additional common shares through the Fund's Dividend Reinvestment Plan, or electing to receive cash by contacting EQ, their financial adviser or their brokerage firm. Shareholders who wish to receive their distribution in cash must opt out of the Fund's Dividend Reinvestment Plan. For further information, shareholders should carefully read the description of the Dividend Reinvestment Plan in the prospectus.
The Board may amend the Level Distribution Policy, the Distribution Amount or distribution intervals, or the Fund may cease distributions entirely, at any time, without prior notice to shareholders. The announcement of, amendment to, or later termination of this Level Distribution Policy may have an adverse effect on the market price of the Fund's shares of common stock.
The Fund may at times, in its discretion, pay out less than the entire amount of net investment income earned in any particular period and may at times pay out such accumulated undistributed income in addition to net investment income earned in other periods in order to permit the Fund to maintain a stable level of distributions. As a result, the dividend paid by the Fund to shareholders for any particular period may be more or less than the amount of net investment income earned by the Fund during such period. The Fund intends to distribute all realized net long-term capital gains, if any, no more than once every twelve months.
To the extent that sufficient investment income is not available on a monthly basis, the Fund's distributions may consist of return of capital in order to maintain the distribution amount. A return of capital occurs when some or all of the money that shareholders invested in the Fund is paid back to them. A return of capital does not necessarily reflect the Fund's investment performance and should not be confused with 'yield' or 'income.' Any such returns of capital will decrease the Fund's total assets and, therefore, could have the effect of increasing the Fund's expense ratio. In addition, the Level Distribution Policy may require the Fund to sell its portfolio securities at a less than opportune time to meet the distribution amount.
Shareholders should not make any conclusions about the Fund's investment performance from the amount of the Fund's distributions or the Fund's Level Distribution Policy. With each distribution that does not consist solely of net investment income, the Fund will issue a notice to shareholders that will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to shareholders are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the distributions for tax reporting purposes will depend upon the Fund's investment experience during its full fiscal year and may be subject to changes based on tax regulations. The Fund will send individual shareholders a Form 1099-DIV for each calendar year that will tell them how to report these distributions for federal income tax purposes. Please consult your tax advisor about any tax implications applicable to you in light of your particular circumstances.
About the Highland Global Allocation Fund
The Highland Global Allocation Fund ("HGLB") (NYSE: HGLB) is a closed-end fund managed by NexPoint Asset Management, L.P. For more information visit www.nexpointassetmgmt.com/global-allocation-fund.
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 open-end funds and closed-end funds. For more information visit nexpointassetmgmt.com.
The distribution may include a return of capital. Please refer to the 19(a)-1 Source of Distribution Notice on the NexPoint Funds 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.
Investors should consider the investment objectives, risks, charges and expenses of the Highland Global Allocation Fund carefully before investing. This and other information can be found in the Fund's prospectus, which may be obtained by calling 1-866-745-0264 or visiting www.nexpointassetmgmt.com. Please read the prospectus carefully before you invest.
CONTACTS
Investor Relations
Kristen Griffith
IR@nexpoint.com
Media Relations
comms@nexpoint.com
View original content:https://www.prnewswire.com/news-releases/highland-global-allocation-fund-declares-monthly-distributions-of-0-085-per-share-302651890.html
SOURCE Highland Global Allocation Fund
FAQ
What distribution did Highland Global Allocation Fund (HGLB) declare for January 2026?
How is HGLB's annual distribution rate determined for 2026?
What are the ex‑date and payable date for HGLB's February 2026 distribution?
For which months did HGLB declare $0.085 distributions?
Does the HGLB announcement guarantee distributions after March 2026?
Which NAV period was used to reset HGLB's annual distribution rate?
