Highland Income Fund Announces Regular Monthly Income | news
DALLAS, October 1, 2021 (GLOBE NEWSWIRE) – Highland Income Fund (NYSE: HFRO) (“HFRO” or the “Fund”) today announced its regular monthly dividend of $ 0.0770 per share on its common stock. The distribution will be payable to registered shareholders on October 29, 2021 at the close of business on October 22, 2021.
The Fund is a closed-end fund managed by Highland Capital Management Fund Advisors, LP (the “Manager”). The Fund pursues its investment objective by investing primarily in the following categories of securities and instruments: (i) floating rate loans and other securities that qualify as floating rate investments; (ii) investments in securities or other instruments directly or indirectly backed by real estate (including real estate investment trusts (“REITs”), preferred stocks, equity convertible securities and mezzanine debt securities); and (iii) other instruments including, but not limited to, secured and unsecured fixed income and corporate bonds, distressed securities, mezzanine securities, structured products (including but not limited to mortgage-backed securities, secured loan liabilities and asset-backed securities), convertible and asset-backed securities Preferred securities, stocks (public and private), and futures and options. The investment objective of the fund is to achieve high ongoing income consistent with the preservation of capital in a registered fund format. The Fund declares and pays distributions of investment income on a monthly basis.
About the Highland Income Fund
The Highland Income Fund (NYSE: HFRO) is a closed-end fund managed by Highland Capital Management Fund Advisors, LP. More information can be found at www.highlandfunds.com/income-fund/
About Highland Capital Management Fund Advisors, LP
Highland Capital Management Fund Advisors, LP is an SEC registered investment advisor. It is the advisor to a number of registered funds including mutual funds, closed end funds and exchange traded funds. More information is available at www.highlandfunds.com.
Investors should carefully consider the investment objectives, risks, fees and expenses of the Highland Income Fund before investing. This and other information can be found in the fund’s prospectus, which can be obtained by calling 1-800-357-9167 or at www.highlandfunds.com. Please read the prospectus carefully before investing.
Effective shortly after close of business on November 3, 2017, the Highland Floating Rate Fund was converted from an open-ended fund to a closed-end fund and commenced trading on the NYSE under the symbol HFRO on November 6, 2017 for periods prior to November 3, 2017 2017 corresponds to the Class Z Shares of the Fund when it was an open-ended fund, HFRZX. The closed-end fund pursues the same investment objective and strategy as before its conversion. The expense ratio will be that of the Z Class Shares of the Fund prior to conversion.
The distribution can include a capital repayment. See Section 19 (a) -1 Source of Distribution Notice on the Highland Funds website for references to Section 19 which contain estimated amounts and sources of distributions by the Fund that should not be relied on for tax filing purposes.
There can be no assurance that the Fund will achieve its investment objectives.
Closed-end investment company stocks often trade at a discount to their net asset value. The price of Shares in the Fund will be determined by a number of factors, some of which are beyond the control of the Fund. As a result, the Fund cannot predict whether its shares will trade at, below or above net asset value. Past performance does not guarantee future results.
Closed Fund Risk. The fund is a closed-end investment company designed primarily for long-term investors and not as a trading vehicle. There can be no assurance that any shareholder will be able to sell their shares on the NYSE if they wish, nor can any assurance be given as to the price at which such a sale can be made.
Credit risk. The Fund may invest all or substantially all of its assets in senior loans or other securities rated below investment grade and unrated senior loans which Highland considers 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 regard to the further ability of the issuing company to make principal and interest payments. Failure to pay the scheduled interest and / or principal would result in a reduction in the Fund’s income, a reduction in the value of the Senior Loan in the event of non-payment and a possible reduction in the Fund’s Net Asset Value. Investments in high yield senior loans and other securities may cause NAV to fluctuate more than if the Fund had not made such investments.
Senior Loan Risk. The London Interbank Offered Rate (“LIBOR”) is the average interest rate offered on various maturities of short-term loans between major international banks that are members of the British Bankers Association. The LIBOR is the most common benchmark interest rate index used to make adjustments to floating rate loans. It is used across the global banking and finance industry to determine interest rates on a wide variety of financial instruments (such as debt and derivatives) and loan arrangements. Due to allegations of manipulation in 2012 and less activity in the financial markets it measured, the Financial Conduct Authority (the âFCAâ) announced in July 2017 a desire to phase out the use of LIBOR at the end of 2021. Although the period From the FCA announcement to the end of 2021 there will generally be enough time for market participants to switch to using a different benchmark for new securities and transactions, uncertainty remains about the future use of LIBOR and the specific replacement rate (n ). Therefore, the possible effects of a move away from LIBOR on the trust or the financial instruments used by the trust cannot yet be determined. The transition process may include increased volatility or illiquidity in the 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 to the trust, or (iii) the effectiveness of related trust transactions such as hedges, as applicable. If LIBOR is discontinued, the LIBOR replacement rate may be lower than market expectations, which could adversely affect the value of preferred and debt securities with floating or fixed-to-floating coupons. Any such move away from LIBOR, as well as other unforeseen effects, could result in losses for the trust. Since the utility of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur before the end of 2021.
Real Estate Industry Risks: Issuers primarily active in the real estate industry, including real estate investment trusts, may be exposed to risks similar to those associated with direct ownership of real estate, including: (i) changes in general economic and market conditions; (ii) changes in the value of real estate; (iii) risks related to local economic conditions, urban development and increased competition; (iv) increases in property taxes and business expenses; (v) changes to building code laws; (vi) casualty and conviction losses; (vii) fluctuations in rental income, neighborhood value or attractiveness of the property to tenants; (viii) the availability of funding; and (ix) changes in interest rates and leverage.
Investment illiquidity risk. The investments made by the Fund may be illiquid and the Fund may not be able to sell these investments at prices which the Investment Advisor believes are worth their value or the amount originally paid by the Fund for these investments.
Ongoing surveillance risk. On behalf of the various lenders, the agent is generally responsible for administering and administering the senior loans and servicing or overseeing the collateral in relation to secured senior loans. Agent financial difficulties can pose a risk to the Fund.
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