DALLAS, April 1,
2022 /PRNewswire/ -- Highland Income Fund (NYSE:
HFRO) ("HFRO" or the "Fund") today announced its regular monthly
distribution on its common stock of $0.0770 per share. The distribution will be
payable on April 29, 2022 to
shareholders of record at the close of business April 22, 2022.
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 distributions of
investment income monthly.
About the Highland Income Fund
The Highland Income Fund (NYSE: HFRO) is a closed-end fund
managed by Highland Capital Management Fund Advisors, L.P. For more
information visit www.highlandfunds.com/income-fund/
About Highland Capital Management Fund Advisors, L.P.
Highland Capital Management Fund Advisors, 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
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 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.
The distribution may include a return of capital. Please
refer to the 19(a)-1 Source of Distribution Notice on the Highland
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.
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 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 London Interbank
Offered Rate ("LIBOR") is the average offered rate for various
maturities of short-term loans between major international banks
who are members of the British Bankers Association. LIBOR is the
most common benchmark interest rate index used to make adjustments
to variable-rate loans. It is used throughout global banking and
financial industries to determine interest rates for a variety of
financial instruments (such as debt instruments and derivatives)
and borrowing arrangements. Due to manipulation allegations in 2012
and reduced activity in the financial markets that it measures, in
July 2017, the Financial Conduct
Authority (the "FCA"), the United
Kingdom financial regulatory body, announced a desire to
phase out the use of LIBOR by the end of 2021. Although the period
from the FCA announcement until the end of 2021 is generally
expected to be enough time for market participants to transition to
the use of a different benchmark for new securities and
transactions, there remains uncertainty regarding the future
utilization of LIBOR and the specific replacement rate or rates. As
such, the potential effect of a transition away from LIBOR on the
Trust or the financial instruments utilized by the Trust cannot yet
be determined. The transition process may involve, among other
things, increased volatility or illiquidity in markets for
instruments that currently rely on LIBOR. The transition may also
result in a change in (i) the value of certain instruments held by
the Trust, (ii) the cost of temporary borrowing for the Trust, or
(iii) the effectiveness of related Trust transactions such as
hedges, as applicable. When LIBOR is discontinued, the LIBOR
replacement rate may be lower than market expectations, which could
have an adverse impact on the value of preferred and
debt-securities with floating or fixed-to-floating rate coupons.
Any such effects of the transition away from LIBOR, as well as
other unforeseen effects, could result in losses to the Trust.
Since the usefulness of LIBOR as a benchmark could deteriorate
during the transition period, these effects could occur prior to
the end of 2021.
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 Income Fund