NexPoint Open-End Funds

Overview

The investment objective of NexPoint Merger Arbitrage Fund (formerly Highland Merger Arbitrage Fund) (the “Merger Arbitrage Fund” or the “Fund”) is to generate positive absolute returns. The Fund continues to be advised by Highland Capital Management Fund Advisors, L.P., an affiliate of NexPoint.

NexPoint Merger Arbitrage Fund

The Fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of the value of its total assets (net assets plus the amount of any borrowings for investment purposes) in securities of companies that are involved in publicly-announced mergers (including mergers through takeovers and tender offers, so long as tender offers are being used to effect a merger) (“Merger Transactions”) or companies that the Adviser believes may be involved in Merger Transactions. This investment policy is not fundamental and may be changed by the Fund without shareholder approval upon 60 days’ prior written notice to shareholders. There can be no assurance that the Fund will achieve its investment objective.

The Fund engages in risk arbitrage strategies, particularly merger arbitrage strategies, in order to achieve its investment objective. Merger arbitrage is a highly specialized investment approach generally designed to profit from the successful completion of Merger Transactions. Although a variety of strategies may be employed depending upon the nature of the reorganizations selected for investment, the simplest form of merger arbitrage activity involves purchasing the shares of an announced acquisition target at a discount to their expected value upon completion of the acquisition. The size of this discount, known as the arbitrage “spread,” may represent the Fund’s potential profit on such an investment. The merger arbitrage strategy is designed to provide performance that the Adviser believes will normally have relatively low correlation
with the overall performance of stock markets.

The Fund generally invests in stocks of target companies in potential Merger Transactions based on the Adviser’s expected risk adjusted return for the arbitrage transaction. In most cases, the Fund will buy the target’s stock soon after the announcement of the Merger Transaction (or when one or more publicly disclosed events point toward the possibility of some type of Merger Transaction within a reasonable time) and may, but is not required to, hold the stock until the deal is completed. While the Fund will usually invest in the common stock of the target, it may also invest in other securities of the target such as convertible debentures, debt, American Depositary Receipts (ADRs), options, and bonds.

In making merger arbitrage investments for the Fund, the Adviser is guided, without limitation, by the following general considerations:
• Annualized and absolute returns;
• Downside risk if a transaction is terminated;
• Proposed financing terms;
• Transaction size;
• Regulatory approvals needed;
• Anti-trust concerns; and
• Shareholder voting requirements.

OPEN-END FUND CONTACTS

Shareholder Services
NexPoint Merger Arbitrage Fund
(866) 351-4440

Sales Consultants
NexPoint Sales Desk (Main)
(877) 665-1287

CONTACTS BY REGION

View the territory map to find the sales contact in your area.

TERRITORY MAP

MEDIA CONTACT

Lucy Bannon
Director of Public Relations & Communications
(972) 419-6272

EMAIL

NexPoint Closed-End Funds

Overview

NexPoint manages a listed closed-end fund, the NexPoint Strategic Opportunities Fund, which aims to provide both income and capital appreciation. The fund was the first offering launched on the NexPoint platform, giving investors access to actively managed alternative strategies in a registered fund format.

NexPoint Strategic Opportunities Fund

(NYSE:NHF)

The NexPoint Strategic Opportunities Fund is a closed-end fund managed by NexPoint Advisors, L.P., a registered investment adviser on the NexPoint platform. The fund trades on the New York Stock Exchange (NYSE) under the ticker symbol NHF.

James Dondero, president of NexPoint Advisors, L.P. and founder of the NexPoint platform, serves as the fund’s portfolio manager.

The fund was the first offering on the NexPoint platform, providing investors with access to alternative strategies in a transparent, registered fund format with monthly dividends.

The fund seeks to provide both current income and capital appreciation. It primarily invests in the following asset classes: public equities; private equity investments; collateralized loan obligation (CLO) debt and equity; high-yield bonds; syndicated floating-rate bank loans; real estate assets; and non-traditional, yield-oriented investments. The fund may hedge exposure where necessary.

Visit the NexPoint Strategic Opportunities Fund site to access investor materials and other resources.

CLOSED-END FUND CONTACTS

Shareholder Services
NexPoint Strategic Opportunities Fund
(866) 351-4440

Sales Consultants
NexPoint Sales Desk (Main)
(877) 665-1287

CONTACTS BY REGION

View the territory map to find the sales contact in your area.

TERRITORY MAP

MEDIA CONTACT

Lucy Bannon
Director of Public Relations & Communications
(972) 419-6272

EMAIL

NexPoint Interval Funds

Overview

NexPoint manages a real estate focused interval fund, the NexPoint Real Estate Strategies Fund, which seeks long-term total return with an emphasis on current income. The fund pursues opportunities across real estate asset classes that are best suited for the interval fund structure.

NexPoint Real Estate Strategies Fund

The NexPoint Real Estate Strategies Fund is a continuously offered, non-diversified, closed-end investment company that operates as an interval fund.

An interval fund is a type of closed-end fund; however, unlike traditional closed-end funds, shares of an interval fund do not typically trade on the secondary market. Interval funds can also continuously offer shares at a price based on the fund’s net asset value.

The fund is managed by NexPoint Advisors, L.P., a registered investment adviser on the NexPoint platform.

The fund seeks long-term total return with an emphasis on income. It primarily invests in a broad range of real estate-related debt, equity, and preferred equity investments across multiple real estate sectors.

Investments include:

  • commercial mortgage backed securities (CMBS) and residential mortgage backed securities (RMBS);
  • direct preferred equity and mezzanine investments in real properties;
  • equity securities of public REITs (both traded and non-traded);
  • debt and equity of private REITs and real estate operating companies (REOCs); and
  • opportunistic and value added direct real estate strategies (through a wholly-owned REIT).

Visit the NexPoint Real Estate Strategies Fund website to access investor materials and other resources.

INTERVAL FUND CONTACTS

Shareholder Services
NexPoint Real Estate Strategies Fund
(844) 485-9167

Sales Consultants
NexPoint Sales Desk (Main)
(877) 665-1287

CONTACTS BY REGION

View the territory map to find the sales contact in your area.

TERRITORY MAP

MEDIA CONTACT

Lucy Bannon
Director of Public Relations & Communications
(972) 419-6272

EMAIL