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Highland Global Allocation Fund Monthly Distribution Update

The Highland Global Allocation Fund (NYSE: HGLB) has officially announced its monthly distributions for the upcoming quarter, setting the payment at $0.085 per share for July through September 2026. This decision reflects the Fund's established level distribution policy, designed to provide a steady income stream to its shareholders. The adjusted annual distribution rate aligns with 8.5% of the Fund's net asset value (NAV) calculated from the last five trading days of the previous year.

Distribution Schedule

The monthly distribution schedule is as follows:

• - Ex-Date: July 24, 2026
• - Record Date: July 24, 2026
• - Payable Date: July 31, 2026

• - Ex-Date: August 24, 2026
• - Record Date: August 24, 2026
• - Payable Date: August 31, 2026

• - Ex-Date: September 23, 2026
• - Record Date: September 23, 2026
• - Payable Date: September 30, 2026

This structured approach intends to enhance predictability for investors looking for consistent returns.

Understanding the Level Distribution Policy

Enacted in March 2019, the Level Distribution Policy allows the Highland Global Allocation Fund to set monthly payouts at a fixed rate that is periodically adjusted. This policy provides shareholders with the option to either reinvest their distributions in additional shares through the Fund's Dividend Reinvestment Plan or opt to receive cash. For shareholders opting for cash distribution, contacting their financial advisor or brokerage is necessary to withdraw from the Dividend Reinvestment Plan.

While these policies aim to maintain a steady distribution, factors such as market conditions, interest rate fluctuations, and performance in equity and fixed-income markets will influence the Fund's ability to maintain this level of distributions. As a result, shareholders should approach any adjustments to distribution with caution, recognizing that the policy does not guarantee sustained payouts.

Capital Management Considerations

The Fund may sometimes pay out less than its net investment income or dip into accumulated income to sustain distribution levels. This could mean a portion of the distribution is classified as a return of capital, which represents funds being paid back to investors rather than profits. Shareholders must be aware that such returns will shrink the Fund’s total assets, possibly raising its expense ratio over time.

The Fund highlights that shareholders should avoid inferring the Fund’s investment performance solely from the distribution amounts. Future distributions may vary depending on multiple investment variables, and detailed notices will be provided regarding the nature of the payouts, especially when not strictly linked to net income.

Tax Implications

To help shareholders navigate potential tax repercussions, the Fund will issue a Form 1099-DIV for the calendar year, detailing how to report distributions for federal income tax purposes. Engaging with a tax professional is advisable to understand the individual implications effectively.

As the Highland Global Allocation Fund continues to manage asset distributions, it will retain the right to adjust its distribution policies as required, potentially affecting market perceptions of the Fund’s shares. Shareholders will be notified accordingly of any significant amendments.

About Highland Global Allocation Fund

Managed by NexPoint Asset Management, the Highland Global Allocation Fund serves investors looking for a mix of equity and fixed income opportunities. Prospective investors are encouraged to review the Fund's objectives, risks, and expenses before making investment decisions, ensuring they are well informed by visiting the Fund's website. Risk disclosure is paramount in all investment strategies.