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Monthly Distribution Announcement from Highland Opportunities and Income Fund

The Highland Opportunities and Income Fund (NYSE: HFRO) has made a significant announcement regarding its latest monthly distribution. On January 2, 2025, the fund declared a distribution amounting to $0.0385 per share. This distribution is scheduled to be paid on January 31, 2025, to all shareholders who are on record as of January 24, 2025.

As a closed-end fund, HFRO's primary goal is to achieve both capital growth and income generation in a registered fund format. The fund employs a diverse investment strategy that encompasses various categories of securities, including real estate secured instruments such as real estate investment trusts (REITs), preferred equities, and various types of debt securities.

Investment Strategy

The Highland Opportunities and Income Fund pursues its investment objective through a mix of direct and indirect investments, which include:
1. Real Estate-Backed Investments: The fund invests in instruments secured by real estate, seeking to capitalize on the stability and appreciation potential of physical assets.
2. Fixed-Rate Loans and Corporate Bonds: It engages in the acquisition of both secured and unsecured fixed-rate loans, targeting corporate bonds and distressed securities to enhance return possibilities.
3. Diverse Securities: The portfolio also encompasses structured products, convertible and preferred securities, equities—including both public and private sectors—and futures and options trading.

The fund’s distribution underwent adjustments as of January 4, 2024, aligning the payout structure with its current portfolio strategies and investment goals. Investors are recommended to visit the fund's website (nexpointassetmgmt.com) to gather detailed information about distributions, and investment performance.

About the Fund

Established and managed by NexPoint Asset Management, L.P., the Highland Opportunities and Income Fund is tailored for long-term investors focusing on capital appreciation along with income generation. Notably, the fund adopted a new investment objective effective June 15, 2023, reflecting its commitment to evolving market dynamics and investor expectations.

Prospective investors should carefully evaluate factors such as investment objectives, risks, fees, and expenses before deciding to invest in HFRO. Detailed information can be obtained from the fund's prospectus, available either through their website or by directly contacting their investor relations department.

Investors should also be aware that the distribution may represent a return of capital, which can affect the financial statement integrity. For tax reporting purposes, it’s essential to refer to the 19(a)-1 Source of Distribution Notice available on the NexPoint Asset Management website.

Risks and Considerations

Investing in the Highland Opportunities and Income Fund comes with certain inherent risks, such as market volatility and credit risk, especially given the substantial allocation to high-yield securities and other lower-rated investments. Investors should be mindful of the potential for shares to trade at a discount to their net asset value, meaning that past performance does not guarantee future results.

In summary, the ongoing monthly distributions, alongside a robust investment approach, position the Highland Opportunities and Income Fund as a viable option for investors looking for a hybrid income and growth opportunity within the equity markets.

For further inquiries or clarifications, interested parties can reach out to the fund's investor relations contact listed below.

Contact Information:
Investor Relations Contact: Kristen Griffith, Email: kristeng@nexpointassetmgmt.com
Media Contact: Prosek Partners for NexPoint, Email: nexpoint@prosek.com

Invest wisely and stay informed!