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Highland Opportunities and Income Fund Announces February 2025 Distribution

On February 3, 2025, the Highland Opportunities and Income Fund (traded under NYSE: HFRO) confirmed its latest monthly distribution, amounting to $0.0385 per share. This payment is scheduled for February 28, 2025, and will be allocated to shareholders on record as of February 21, 2025.

Overview of the Fund

The Highland Opportunities and Income Fund is a closed-end investment vehicle that aims to combine capital growth with income generation. The fund achieves its objectives through a diversified portfolio that includes a variety of securities and financial instruments. These include:

• - Real estate securities, such as REITs, preferred equity, and mezzanine debt.
• - Corporate bonds and loans, focusing on both secured and unsecured assets.
• - Equities and structured products, incorporating convertible and preferred securities, and various derivatives.
• - Floating rate instruments, which ensure adaptability to changing interest rates.

The fund's strategy offers a nuanced approach, accommodating both direct and indirect investments in these categories, thereby optimizing its income potential and capital growth.

Monthly Distribution Adjustments

Notably, on January 4, 2024, the fund adjusted its monthly distribution rate to better reflect its current investment strategy and portfolio alignment. This proactive measure underscores the fund's commitment to enhancing shareholder value while fine-tuning its distribution in line with market conditions.

For prospective investors seeking more detailed information regarding the distribution and the fund's performance, resources are available on the fund's official website: NexPoint Asset Management.

Transition to a New Investment Focus

Effective June 15, 2023, the Highland Opportunities and Income Fund transitioned to its current title, emphasizing its revised investment focus prioritizing capital growth alongside income. This shift is designed to reflect the evolving landscape of investment opportunities and to meet the expectations of its shareholders more effectively. Further details regarding this change were communicated in a press release dated May 16, 2023.

About NexPoint Asset Management

NexPoint Asset Management, L.P., the firm behind HFRO, is an SEC-registered investment advisor dedicated to managing a diverse range of investment funds. These include both open-end and closed-end mutual funds as well as exchange-traded funds. For those interested in delving deeper into their offerings, NexPoint provides comprehensive data on its various funds via its official site.

Important Considerations

Investors are encouraged to carefully assess the investment objectives, risks, charges, and expenses associated with the Highland Opportunities and Income Fund before committing capital. This vital information can be sourced in the fund's prospectus, available through customer service at 1-800-357-9167 or online.

It’s essential to recognize that the distribution may encompass a return of capital, and each shareholder should consult the 19(a)-1 Source of Distribution Notice available on NexPoint’s website for details pertinent to tax reporting.

Conclusion

With the ongoing commitment to transparency and shareholder value, the Highland Opportunities and Income Fund continues to attract investors looking for income potential blended with growth prospects. As with any investment, being aware of the associated risks is crucial, particularly as the nature of closed-end funds can lead to share prices that diverge from net asset value. Historical performance is not always indicative of future results, reminding investors to remain vigilant in their assessment of risk and reward in their pursuit of investment success.

For further inquiries, investors can connect with the fund's Investor Relations team or the Media Relations group at Prosek Partners for NexPoint.

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