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Highland Opportunities and Income Fund Announces Monthly Distribution

On June 1, 2026, the Highland Opportunities and Income Fund (NYSE: HFRO), often referred to as HFRO, made a significant announcement regarding its regular monthly distribution. As part of its commitment to shareholder returns, the Fund will distribute $0.0385 per share to its investors. This distribution will be payable on June 30, 2026, to shareholders who are on record by June 23, 2026.

The Highland Opportunities and Income Fund operates as a closed-end fund aimed at fostering capital growth along with providing income to its shareholders. This strategic goal is achieved through a diverse investment approach, focusing on a mix of securities and financial instruments. The Fund primarily invests in:

1. Real Estate-Related Securities: This includes exposure to real estate investment trusts (REITs), preferred equity, convertible securities, and mezzanine debt. Such investments offer potential value appreciation and income generation stemming from the real estate market's growth.

2. Fixed-Income Instruments: The fund also invests in a mix of secured and unsecured loans, corporate bonds, distressed securities, and structured products such as mortgage-backed securities and collateralized loan obligations. This diverse range of fixed-income instruments allows for a balanced risk-reward profile.

3. Floating Rate Loans: Investments also extend to floating rate loans deemed to be advantageous in changing interest rate environments. This aspect of the Fund's strategy helps in mitigating interest rate risk while potentially enhancing returns.

Highland's commitment to monthly distributions signifies its focus on providing steady income to its investors. Notably, the declared monthly distribution underscores the Fund's objective to deliver value consistently, aligning with the interests of long-term investors who prioritize income generation.

About the Fund

The Highland Opportunities and Income Fund is part of NexPoint Asset Management, L.P., a well-established entity in the investment management sphere. Those interested in exploring investment opportunities with the Highland Opportunities and Income Fund can access further details through the NexPoint website. The firm’s proficiency in managing a suite of registered funds embodies its dedication to delivering customized investment solutions.

Considerations for Investors

While the Fund seeks to achieve its investment objectives, it is important for potential investors to consider various factors. Investments in lower-rated securities, often referred to as 'high yield' or 'junk securities,' carry higher risks. Such securities may result in greater fluctuations in net asset value (NAV) and income levels, particularly if the issuing companies encounter financial difficulties.

Investors should also pay attention to the liquidity risks associated with the Fund's investments. Given that some securities might be illiquid, there may be challenges in selling these investments at desired prices. Moreover, ongoing monitoring of these investments is essential, especially when managed by various agents who facilitate the Senior Loans.

For anyone considering an investment in HFRO, it is crucial to thoroughly review and understand the investment objectives, risks, charges, and expenses detailed in the Fund’s prospectus prior to making any financial commitments. Interested individuals can contact the Highland team directly or visit their official website for more information.

In summary, the Highland Opportunities and Income Fund continues to demonstrate its commitment to regular income distribution while navigating the complex landscape of investment opportunities. The announced distribution for June 2026 reaffirms its position as a reliable choice for investors looking for both capital growth and income.