Highland Capital Management, L.P. (“Highland”), a Dallas-based investment management firm, which together with its affiliates has approximately $19.5 billion in assets under management, announced the company has launched its first European regulated fund. Highland will act as the sub-advisor of the BB Highland Floating Rate Fund (“the Fund”), which it has launched as an Irish Qualified Investor Fund (QIF) in partnership with BB DTVM, the asset management arm of Banco do Brasil.
The Fund is designed to replicate the Highland Floating Rate Opportunities Fund by investing primarily in U.S. bank loans and other floating rate products that seek to generate yield in a rising interest rate environment. As of June 30, 2014, the Highland Floating Rate Opportunities Fund (HFRZX) was ranked as the number one Bank Loan Fund by Morningstar based on total return for the one, three and five year periods among 213, 168 and 111 funds, respectively.¹ The Fund Class Z also won the 2014 Lipper Award for “Best Loan Participation Fund over Three Years.”²
“As international investors continue their search for yield, alpha generating bank loan funds are becoming an increasingly popular solution,” said Highland’s Co-Founder and Chief Investment Officer Mark Okada, who will serve as the lead portfolio manager of the fund. “We’re excited to be able to bring the success of the Highland Floating Rate Opportunities Fund to a much wider base of international investors.”
The Fund will target an investor base comprised of investors from Europe, Latin America and Asia. It is designed to provide foreign investors with access to the U.S. bank loan market through one of the largest and most experienced global senior loan managers. As sub-advisor of the fund, Highland will have discretion and authority over all investment decisions. The Fund will offer bi-monthly liquidity.
About Highland Capital Management
Highland Capital Management is an SEC-registered investment adviser which, together with its affiliates, has approximately $19 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’s strategies include collateralized loan obligations (CLOs), high yield bonds, distressed credit, public and private equities, structured products and natural resources.
About BB DTVM
BB DTVM, established in 1986, is the leader in the Brazilian mutual funds industry, and currently has $243 billion of assets under management. As a wholly-owned subsidiary of Banco do Brasil S.A., the largest financial institution in Brazil for more than 200 years, BB DTVM is an asset management company synonymous with reliability to its clients.
1. As of June 30, 2014, the Highland Floating Rate Opportunities Fund Class A, A-LW, C and Z shares absolute rankings were 2, 2, 4 and 1, respectively, based on Total Return for the 1-year period among 213 funds in the Morningstar Bank Loan Category. The Class A, A-LW, C and Z shares absolute rankings for the 3-year period were 2, 2, 4 and 1, respectively, among 168 funds. The Class A, A-LW, C and Z shares absolute rankings for the 5-year period were 2, 2, 4 and 1, respectively, among 111 funds. The Class A, A-LW, C and Z shares absolute rankings for the 10-year period were 41, 41, 43 and 40, respectively, among 43 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.
2. The Highland Floating Rate Opportunities Fund (Class Z) was awarded the 2014 Lipper Fund Award in the Loan Participation Fund category for the 3 year period ending 12/31/13.There were 22 investment companies and 26 separate portfolios in the category for the award period. The award is based on consistent return. The highest Lipper leader for consistent return value for the classification for the 36 month period determined the winner.Lipper Leader ratings for Consistent Return reflect funds’ historic returns, adjusted for volatility, relative to peers. Ratings for Consistent Return are computed for all Lipper classifications with five or more distinct portfolios and span both equity and fixed-income funds. The Lipper Fund Awards are part of the Thomson Reuters Awards for Excellence, a global family of awards that celebrate exceptional performance throughout the professional investment community. The Thomson Reuters Awards for Excellence recognize the world’s top funds, fund management firms, sell-side firms, research analysts, and investor relations teams. The Thomson Reuters Awards for Excellence also include the Extel Survey Awards, the StarMine Analyst Awards, and the StarMine Broker Rankings. For more information, please contact firstname.lastname@example.org or visit www.excellence.thomsonreuters.com.