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Highland Opportunities and Income Fund Declares Regular Monthly Distribution

The Highland Opportunities and Income Fund (NYSE: HFRO), commonly referred to as HFRO, has announced a regular monthly distribution for its shareholders. The fund will provide a payout of $0.0385 per common share, which is set for distribution on July 31, 2025. Shareholders on record as of the close of business on July 24, 2025, will be eligible for this payment.

The Highland Opportunities and Income Fund operates as a closed-end fund, primarily aiming to deliver both capital growth and income returns. The fund achieves its investment goals through a diverse approach that involves direct and indirect investments, including derivatives symbolizing these direct investments. The Fund focuses on several categories of securities and financial instruments, which include:

1. Real Estate Investments: These consist of securities and instruments backed by real estate, such as Real Estate Investment Trusts (REITs), preferred equity, and mezzanine debt.
2. Fixed-Rate Loans and Corporate Bonds: The fund invests in secured and unsecured loans, distressed securities, structured products like mortgage-backed securities, and also equities—both public and private, alongside futures and options.
3. Floating Rate Investments: This encompasses floating rate loans and securities categorized as floating rate.

Operating on a monthly distribution model not only ensures a steady flow of income for its investors but also highlights the fund's commitment to maintaining consistent payouts. The Highland Opportunities and Income Fund underwent a name change effective June 15, 2023, to better align with its revised investment objectives that emphasize both capital growth and income generation. More details regarding the modifications can be accessed via the official release dated May 16, 2023.

About Highlands Opportunities and Income Fund

The Fund is fully managed by NexPoint Asset Management, L.P., a registered investment adviser with oversight on a suite comprising registered funds. Investors interested in further details regarding their investments are encouraged to visit NexPoint Asset Management's website or reach out through their dedicated investor relations line available at 1-800-357-9167.

Risk Considerations for Investors

As investors contemplate their options, it is crucial to understand the investment objectives, risks, management fees, and any associated costs tied to the Highland Opportunities and Income Fund, which must be diligently reviewed in the fund’s prospectus prior to investment decisions.

The distributions may include a return on capital, therefore investors should refer to the 19(a)-1 Source of Distribution Notice available on the NexPoint Asset Management website for precise amounts and sources pertaining to distributions. Investors should not solely rely on this notice for tax reporting. Furthermore, various factors beyond the control of the fund could affect share prices, therefore forcing the fund to operate under the principle of unpredictability in share value.

As a closed-end investment company, the Highland Opportunities and Income Fund is primarily intended for long-term investors rather than traders. With the nature of closed-end funds, there is no assurance that shareholders will successfully execute sales of their shares on the NYSE or guarantee returns equivalent to the net asset value at sale.

Through continued monitoring, the fund aims to manage and administer senior loans determined to be compliant with its outlined investment strategies as well as ensuring prudent oversight in cases of collateralized senior loans which may enhance associated risks. Overall, investment in the Highland Opportunities and Income Fund reflects a commitment to both diverse financial strategies and consistent shareholder growth amid market fluctuations.