Highland Opportunistic Credit Fund

Data updated: 2021-03-01

C000141934 — Highland Opportunistic Credit Fund. Money Market · $6.90M AUM · 2.49% expense ratio. Holdings, fees, performance and SEC filings.

C000141934 Fund Overview

Highland Opportunistic Credit Fund is a US mutual fund managed by Nexpoint Funds I, categorised as Money Market. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

Type: US mutual fund
Manager: Nexpoint Funds I
Category: Money Market
Assets under management: $6.90M
1-year return: -18.0%
SEC CIK: 0001354917
SEC series ID: S000045651
Share class ID: C000141934

C000141934 Investment Objective and Strategy

Highland Opportunistic Credit Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Nexpoint Funds I.

Investment objective

The investment objective of Highland Opportunistic Credit Fund (“Highland Opportunistic Credit Fund” or the “Fund”) is to seek to achieve high total returns while attempting to minimize losses.

Principal investment strategy

The Fund seeks to achieve its investment objective by investing at least 80% of the value of its total assets (net assets plus any borrowings for investment purposes) under normal circumstances in credit instruments. This investment policy may be changed by the Fund upon 60 days prior written notice to shareholders. Credit instruments include secured and unsecured floating and fixed rate loans; bonds and other debt obligations; debt obligations of stressed, distressed and bankrupt issuers; structured products, including but not limited to, mortgage-backed and other asset-backed securities and collateralized debt obligations, convertible bonds or preferred stock, and master limited partnerships (MLPs). Floating rate investments are debt obligations of companies or other entities, the interest rates of which float or vary periodically based upon a benchmark indicator of prevailing interest rates.

Floating rate investments may include, by way of example, floating rate debt securities, money market securities of all types and repurchase agreements with remaining maturities of no more than 60 days. In making these investments, the Adviser will seek to purchase instruments that the Adviser believes are undervalued or are generally out of favor with investors and have the potential to grow intrinsic value per share. For purposes of satisfying the 80% requirement, the fund may invest in derivative instruments that have economic characteristics similar to such credit instruments. The Funds investment strategy utilizes analytical models to evaluate the assets of various companies in an attempt to isolate those assets with the greatest potential for capital appreciation. The Adviser intends to follow a flexible approach in order to place the Fund in the best position to capitalize on opportunities in the financial markets.

Subject only to this general guideline, the Adviser has broad discretion to allocate the Funds assets among these instruments and to change allocations as conditions warrant. The Fund may invest without limitation in securities of U.S. issuers and in securities of non-U.S. issuers, including investments in the securities of so-called emerging or developing market issuers. Such investment may be denominated in U.S. dollars, non-U.S. currencies or multinational currency units. The Fund may invest in securities issued by other investment companies, including exchange-traded funds (ETFs). Within the categories of obligations and securities in which the Fund invests, the Adviser employs various trading strategies, including capital structure arbitrage. Capital structure arbitrage is a strategy in which the Fund seeks opportunities created by mispricing in different markets of various instruments issued by one corporation.

The Fund may use derivatives for investment gain, or speculative, purposes. There is no limitation on the amount of securities rated below investment grade (Ba/BB or lower), which are commonly referred to as junk securities, that the Fund may purchase. Junk securities are subject to greater risk of loss of principal and interest and may be less liquid than investment grade securities. There can be no assurance that the Funds investment objectives will be achieved. The Fund may borrow an amount up to 33 1/3% (or such other percentage permitted by law) of its total assets (including the amount borrowed) less all liabilities other than borrowings. The Fund may borrow for investment purposes, to meet redemption requests, and for temporary, extraordinary or emergency purposes. The use of leverage for investment purposes increases both investment opportunity and investment risk.

As part of its investment program, the Fund may invest, from time to time, in debt or synthetic instruments that are sold in direct placement transactions between their issuers and their purchasers and that are neither listed on an exchange, nor traded over the counter. The Fund may also receive equity or equity-related securities from time to time in connection with a workout transaction. Such equity-related securities may be unregistered and/or restricted. The Fund may invest without limitation in warrants and may also use derivatives, primarily swaps (including equity, variance and volatility swaps), options and futures contracts on securities, interest rates, non-physical commodities and/or currencies, as substitutes for direct investments the Fund can make. The Fund may also use derivatives such as swaps, options (including options on futures), futures, and foreign currency transactions (e.g., foreign currency swaps, futures and forwards) to any extent deemed by the Adviser to be in the best interest of the Fund, and to the extent permitted by the 1940 Act, to hedge various investments for risk management and speculative purposes.

The Adviser also anticipates employing leverage in managing the Funds assets and the Fund may invest in the securities of companies whose capital structures are highly leveraged. From time to time, the Fund may also invest some of the Funds assets in short-term U.S. Government obligations, certificates of deposit, commercial paper and other money market instruments, including repurchase agreements with respect to such obligations, to enable the Fund to make investments quickly and to serve as collateral with respect to certain of its investments. A greater percentage of Fund assets may be invested in such obligations if the Adviser believes that a defensive position is appropriate because of expected economic or business conditions or the outlook for security prices. From time to time, cash positions may be placed in one or more money-market funds or cash and cash equivalents may be used as defensive instruments.

When following a defensive strategy, the Fund will be less likely to achieve its investment objective. The Fund is a non-diversified fund as defined in the 1940 Act, but it intends to adhere to the diversification requirements applicable to regulated investment companies (RICs) under Subchapter M of the Internal Revenue Code of 1986, as amended (the Code). The Fund is not intended to be a complete investment program.

C000141934 Performance

Total returns for C000141934 (as of 2026-10-01), from SEC filings.

Period	Total return
1 year	-18.0%

C000141934 Risk Information

Risk metrics for C000141934, derived from monthly returns in SEC filings.

1-year volatility (annualised): 13.7%

C000141934 Costs and Fees

C000141934 costs about $249 per $10,000 invested per year in fund expenses.

Net expense ratio: 2.49%
Gross expense ratio: 2.49%
Portfolio turnover: 67%
Brokerage commissions: 5.14 bps of average net assets (SEC N-CEN)

C000141934 Cashflows

Over the 12 months to 2020-12, Highland Opportunistic Credit Fund had net inflows of $8.07M, from monthly SEC N-PORT filings.

Month	Net flow
2020-12	−$4.11M
2020-11	$957.43K
2020-10	$957.59K
2020-09	$1.02M
2020-08	$286.76K
2020-07	$505.80K

C000141934 Debt Constituents

No individual debt constituents are reported in Highland Opportunistic Credit Fund's latest SEC N-PORT filing.

C000141934 Prospectus and SEC Filings

Official Highland Opportunistic Credit Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

Related Funds

Other Money Market funds tracked on ABC INVEST:

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.