Highland Income Fund Declares Monthly Distribution

The Highland Opportunities and Income Fund (NYSE: HFRO) has confirmed its regular monthly distribution for common stockholders, signaling continued income generation for investors. The fund, managed by NexPoint Asset Management, L.P., will distribute $0.0385 per share. This payout is scheduled to be disbursed on September 30, 2026, to shareholders of record as of the close of business on September 23, 2026.

This distribution underscores the fund's objective of delivering both capital growth and consistent income within a registered fund structure. HFRO's investment strategy is multifaceted, encompassing direct and indirect stakes in a diverse array of financial instruments. These include real estate-backed securities, preferred equity, convertible instruments, and mezzanine debt. The fund also actively invests in fixed-rate loans, corporate bonds, distressed securities, structured products like CLOs and ABS, and various equity classes, both public and private.

The fund's approach to generating returns is particularly relevant in the current market environment, where investors are increasingly seeking yield amidst fluctuating interest rates and evolving economic conditions. The inclusion of floating rate investments within its portfolio offers a degree of protection against rising rate scenarios, a key consideration for income-focused strategies. The broader closed-end fund sector, which often trades at a discount to net asset value, presents unique opportunities for discerning investors who can identify undervalued assets.

NexPoint Asset Management, the advisory arm of the NexPoint platform, manages a suite of investment vehicles, including registered open-end and closed-end funds. Their expertise in navigating complex credit markets and real estate-related investments is central to HFRO's operational framework. Investors are advised to consult the fund's prospectus and SEC filings for a comprehensive understanding of its investment objectives, associated risks, and expense structures.

It is important for investors to note that distributions may include a return of capital, and the fund provides detailed notices regarding the estimated sources of these distributions. These notices, available on the NexPoint Asset Management website, are crucial for tax reporting but should not be solely relied upon for such purposes. The fund's strategy, which can involve investments in below-investment-grade and unrated securities, carries inherent credit risk and the potential for NAV volatility.

The real estate sector, a significant component of HFRO's investment universe, is subject to a range of economic and market-specific risks, including shifts in property values, local economic conditions, and interest rate sensitivity. Furthermore, the potential illiquidity of certain fund investments necessitates careful consideration by long-term investors, as the ability to divest assets at desired valuations cannot always be guaranteed.