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Monthly Distribution Announcement from Highland Opportunities and Income Fund

On November 3, 2025, the Highland Opportunities and Income Fund, traded under the ticker symbol HFRO on the NYSE, officially announced its regular monthly distribution, which amounts to $0.0385 per share. This distribution will be payable on November 28, 2025, to all shareholders who are on record by the close of business on November 21, 2025.

The Highland Opportunities and Income Fund operates as a closed-end fund aiming to deliver both growth of capital and income, employing an investment strategy that encompasses a variety of securities and instruments. This includes direct investments in real estate-related securities such as Real Estate Investment Trusts (REITs), preferred equity, and mezzanine debt. Furthermore, the fund also engages in indirect investments, utilizing derivatives that mimic the economic equivalence of direct investments.

Investment Strategies and Instruments

The Fund’s diverse investment strategy aims to mitigate risk and enhance returns by investing in:
1. Real Estate Secured Instruments: This portion comprises investments in securities directly or indirectly guaranteed by real estate assets. REITs, mezzanine debts, and preferred equity are central to this category.
2. Other Financial Instruments: This includes secured and unsecured fixed-rate loans, distressed securities, convertible and preferred equities, and structured products such as mortgage-backed and asset-backed securities.
3. Floating Rate Loans: These are securities deemed to provide floating-rate returns, thereby offering potential for income growth amidst changing market conditions.

The Highland fund has established a routine of declaring and paying monthly distributions, thereby providing regular income to its investors.

A Brief Overview of the Fund

The Highland Opportunities and Income Fund, which transitioned its name effective June 15, 2023, reflects a renewed investment objective focused on capital growth and income generation. The shift in investment policy and structure was further detailed in a press release from May 16, 2023. The fund is managed by NexPoint Asset Management, a recognized investment adviser registered with the SEC.

For those considering investment in the Highland Opportunities and Income Fund, it is crucial to carefully evaluate the investment objectives, risks associated, and the charges involved. Detailed information about investment risks, including potential exposure to credit risks from below-investment-grade securities and real estate market fluctuations, can be found in the fund's prospectus available via NexPoint’s official website.

Understanding the Risks Involved

Investors should be aware of several risks when considering the Highland Opportunities and Income Fund:

• - Credit Risk: This includes the risk associated with investing significantly in high-yield securities, where non-payment could impact fund income and shareholder value.
• - Real Estate Risks: Investments tied directly to real estate investments face risks typical of the real estate market, including economic downturns, property value changes, and local market conditions.
• - Illiquidity Risk: The nature of the investments may result in limited marketability, which can affect the ability to sell investments at a favorable price.

Conclusion

The Highland Opportunities and Income Fund continues to position itself as a reliable entity for long-term investors seeking capital appreciation and steady income through intelligently diversified investments. With its monthly distribution strategy, it remains dedicated to delivering consistent returns, albeit with an understanding of the inherent risks within the fund's structure. Investors are encouraged to stay informed and regularly consult the fund’s advisories for the most accurate and updated information concerning their investments.