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Highland Opportunities Fund Announces Monthly Distribution

The Highland Opportunities and Income Fund (NYSE: HFRO), commonly referred to as HFRO, has recently revealed its regular monthly distribution for shareholders. The distribution is set at $0.0385 per share, and will be payable on August 31, 2026. Shareholders must be on the record, with their holdings confirmed as of August 24, 2026, to receive this payout.

This closed-end fund is designed to deliver both capital growth and income, utilizing a registered format for their operations. To achieve these investment aims, HFRO invests in various categories of securities and instruments. These investments include, but are not limited to, those categorized as follows:

1. Real Estate Investments: HFRO directly and indirectly invests in securities tied to real estate, which encompasses Real Estate Investment Trusts (REITs), preferred equity, and mezzanine debt, among others.
2. Fixed Income Instruments: This category includes both secured and unsecured loans, corporate bonds, and structured products like mortgage-backed securities and asset-backed securities.
3. Floating Rate Loans: HFRO considers various securities that are recognized as floating rate investments, allowing flexibility in a dynamic market.

The fund takes pride in its strategy of declaring and distributing monthly payments, which is an attractive option for many investors seeking consistent returns.

About Highland and Its Team

Founded and managed by NexPoint Asset Management, L.P., HFRO operates as a closed-end fund. NexPoint is a registered investment adviser under SEC regulations and oversees a range of registered open-end and closed-end funds. The emphasis on transparency and effective communication aims to inform investors about their options. Additional information regarding investment strategies and objectives can be found at their website: nexpointassetmgmt.com.

It's essential to mention that investors should carefully consider a range of aspects such as the investment objectives, risks, and expenses associated with the Highland Opportunities and Income Fund before proceeding. Detailed insights on these parameters can be accessed through the fund's prospectus, available by calling their helpline or visiting their official site.

Moreover, the monthly distribution does have the potential to include a return of capital, and interested parties are advised to view the 19(a)-1 Source of Distribution Notice provided on NexPoint's website. This document offers critical insights regarding estimated distribution amounts and their sources, although it should not be used as a basis for tax reporting.

Investors should also be aware that the fund's shares often trade at a discount to their net asset value (NAV). The share price is influenced by various factors, some of which may be outside of the fund's control, leading to unpredictable trading patterns.

Risks Associated with Investments

As with any investment strategy, certain risks accompany HFRO's operational model. The fund may involve exposure to high yield securities, which are classified as speculative, often leading to fluctuations in NAV. Additionally, the real estate sector carries various risks that can affect investment viability, mainly driven by economic conditions and property market dynamics.

The nature of closed-end funds is tailored for long-term investors. Potential shareholders must recognise that selling shares on the NYSE at a desired moment cannot be guaranteed. The prices at which shares may be offloaded will be influenced by existing market conditions.

In summary, HFRO offers a structured approach to generating income through strategic securities and asset management, providing an opportunity for investors seeking regular distributions backed by a robust management team. Detailed investment options and risk disclosures can ensure prospective investors make informed choices to align with their financial goals.