#United States #Dallas #Highland Fund #Investment Management #Distribution Policy

Highland Global Allocation Fund Declares Consistent Monthly Distributions

In a significant announcement for investors, the Highland Global Allocation Fund (NYSE: HGLB) has declared a series of monthly distributions of $0.088 per share. This decision reflects the fund's commitment to providing consistent income to its shareholders and follows a level distribution policy.

Distribution Overview

The monthly distributions are to be made on the following dates:

• - Ex-Date: July 24, 2025, Payable Date: July 31, 2025
• - Ex-Date: August 22, 2025, Payable Date: August 29, 2025
• - Ex-Date: September 23, 2025, Payable Date: September 30, 2025

This marks the continuation of the fund's policy established in March 2019, aimed at stabilizing shareholder distributions while also adjusting annually according to the fund's average net asset value (NAV).

Understanding the Level Distribution Policy

Under this policy, the Fund aims to distribute a constant amount to its stockholders, recalibrated annually based on the average NAV calculated over the final five trading days of the previous calendar year. Currently, the established annual distribution rate has been set to 8.5% of the calculated average NAV, allowing investors to gain confidence in the fund's potential for continued returns.

However, it is important to note that this distribution is not guaranteed, and the fund's ability to maintain this level of distributions relies on several market factors, including overall market performance and prevailing interest rates.

Shareholder Options and Financial Impact

Shareholders of the Highland Global Allocation Fund have the flexibility to choose how they wish to receive their distributions. They may opt to reinvest their distributions into additional shares via the Fund's Dividend Reinvestment Plan. Alternatively, they can choose to receive cash disbursements by contacting their financial advisor or brokerage firm.

For those selecting the cash distribution route, it is essential to withdraw from the Dividend Reinvestment Plan to receive cash instead.

Furthermore, the Board of Trustees holds the discretion to modify the Level Distribution Policy at any time, including the distribution amounts and intervals without prior notice to shareholders. This means that changes in strategy could have a direct impact on the market price of the Fund's shares and overall shareholder returns.

Important Considerations

It's crucial for shareholders to understand that the fund might occasionally distribute less than the total net investment income generated in certain periods. The Fund may also opt to pay out accumulated undistributed income from prior periods to sustain a stable distribution amount. Therefore, the dividends received might not always correlate with the net investment income earned during that specific time frame.

Investors should not draw conclusions about the Fund’s overall investment performance solely from these distribution amounts. Each distribution that does not consist distinctly of net income will be communicated to shareholders, detailing the composition of the distribution.

Conclusion

The Highland Global Allocation Fund continues to offer its shareholders regular income opportunities with its $0.088 monthly distributions. Through vigilant management, ongoing assessments of market conditions, and adaptability in its distribution approach, the Fund aims to provide a robust investment option for income-focused investors. For further information, shareholders are encouraged to review the Fund’s prospectus and stay informed about the implications of the Level Distribution Policy. Always consult a tax advisor to navigate the specific tax implications of these distributions based on individual circumstances.