Highland Capital Management Announces New Expense Cap for Global Allocation Fund

By October 27, 2014Press Releases

Contract Renewal Marks Highland’s 10th Year in 40’ Act Space, More Than Half of Highland’s Mutual Funds Now Have Expense Caps or Fee Waivers in Place

Dallas-based investment management firm Highland Capital Management Fund Advisors, L.P. (together with its affiliates “Highland”), announced a 0.65% expense cap on the Highland Global Allocation Fund (HCOAX).

“We have been a pioneer in the liquid alternatives space since 2004”

Highland’s Global Allocation Fund (HCOAX) is a best in class strategy that invests across multiple asset classes and geographies with the goal of generating alpha in any economic environment. As of September 30, 2014, Morningstar ranked the Fund Class Y number one based on Total Return for the one year period among 506 World Allocation Funds.1

Highland now has either expense caps or fee waivers in place in over half (8 out of 13) of its mutual funds. During the twelve months ending June 2014 Highland contributed approximately $16 million to support these caps and waivers. Most recently, Highland instituted an expense cap on the Highland Small Cap Equity Fund (HSZAX) in August.

“We remain committed to providing compelling differentiated strategies at a competitive price,” said Ethan Powell, Highland’s Chief Product Strategist. “Highland’s goal is to offer investors access to best in class performance with fees that are either at or below the industry average.”

Highland also announced that the Highland Fund board has approved the annual renewal of the Highland advisory contract, making December 2014 the ten year anniversary of Highland offering their investment expertise in open ended mutual funds.

“We have been a pioneer in the liquid alternatives space since 2004,” added Powell. “These expense caps are part of our ongoing commitment to providing investors with lower fee alternatives to strategies that were previously exclusive to hedge funds.”

About Highland Capital Management Fund Advisors

Highland Capital Management Fund Advisors is a SEC-registered investment adviser which, together with its affiliates, has approximately $19.5 billion of assets under management. Founded in 1993 by Jim Dondero and Mark Okada, Highland is one of the largest and most experienced global alternative credit managers. Highland specializes in credit strategies, such as credit hedge funds, long only funds and separate accounts, distressed and special situation private equity, and collateralized loan obligations (CLOs). Highland also offers alternative investments, including emerging markets, long/short equities, and natural resources. Highland’s diversified client base includes public pension plans, foundations, endowments, corporations, financial institutions, fund of funds, governments, and high net-worth individuals. Highland is headquartered in Dallas, Texas and maintains offices in New York, Sao Paolo, Singapore, and Seoul.

  1. As of September 30, 2014, the Highland Global Allocation Fund Class A, A-LW, C and Y shares absolute rankings were 2, 2, 4 and 1, respectively, based on Total Return for the 1-year period among 506 funds in the Morningstar World Allocation Category. The Class A, A-LW, C and Y shares absolute rankings for the 3-year period were 2, 2, 4 and 1, respectively, among 366 funds. The Class A, A-LW, C and Y shares absolute rankings for the 5-year period were 2, 2, 4 and 1, respectively, among 247 funds. The Class A, A-LW, C and Y shares absolute rankings for the 10-year period were 25, 25, 28 and 21, respectively, among 124 funds. The Morningstar Ranking compares a Fund’s Morningstar risk and return scores with all the Funds in the same Category, where a ranking of 1 represents the top of the category while higher numbers represent a lower rank. Past performance does not guarantee future results.

Fees and Expenses: Total gross operating expenses as reported in the Fund’s most recent Prospectus are as follows: Class A 1.16%, Class C 1.91%, Class Y 0.91%. The Advisor has contractually agreed to limit the total annual operating expenses of the Fund to 0.65% of average daily net assets of the Fund. The expense cap will continue through at least January 31, 2016. Total net operating expenses for each class after expense reimbursement are Class A 0.94%, Class C 1.69%, Class Y 0.69%. Class A Max Sales Charge: 5.75%. Class C Contingent Deferred Sales Charge (“CDSC”) is 1% within the first year from each purchase.

Before investing in the Fund, you should carefully consider the Fund’s investment objectives, risks, charges and expenses. For a copy of a prospectus or summary prospectus which contains this and other information, please visit our website at highlandfunds.com or call 1-877-665-1287. Please read the fund prospectus carefully before investing.