Highland Global Allocation Fund Declares Monthly Distributions of $0.084 Per Share

Rhea-AI Summary

The Highland Global Allocation Fund (NYSE: HGLB) announced monthly distributions of $0.084 per share for April to June 2023, setting an annual distribution rate at 8.5% of the average net asset value (NAV) from late 2022. The Fund's level distribution policy allows for monthly distributions, subject to market conditions impacting investment income. Key distribution dates include April 20, May 22, and June 22, 2023. Shareholders can choose between cash payments or reinvesting distributions. Changes to the distribution policy may affect share prices, and future distributions may consist of returns on capital, potentially impacting total assets.

Positive

• Monthly distributions set at $0.084 per share enhance investor income.
• Annual distribution rate reset to 8.5% of average NAV, reflecting stable fund performance.

Negative

• The ability to maintain distributions is contingent on market conditions and may change.
• Possible distributions may consist of returns of capital, reducing total assets.

DALLAS, April 3, 2023 /PRNewswire/ -- Highland Global Allocation Fund (NYSE: HGLB) ("the "Fund") today announced the declaration of monthly distributions of $0.084 per share, payable on the dates noted below. Under the Fund's level distribution policy, the annual distribution rate has been reset to an amount equal to 8.5% of the average of the Fund's net asset value ("NAV") per share, as reported for the final five trading days of the 2022 calendar year. The Fund is declaring distributions of $0.084 per month for April through June 2023.

The following dates apply to the distributions declared:

Ex-Date	Record Date	Payable Date
April 20, 2023	April 21, 2023	April 28, 2023
May 22, 2023	May 23, 2023	May 31, 2023
June 22, 2023	June 23, 2023	June 30, 2023

About the Level Distribution Policy

In March 2019, the Fund's Board of Trustees (the "Board") approved a level distribution policy (the "Level Distribution Policy") under which the Fund makes monthly distributions to stockholders at a constant and fixed (but not guaranteed) rate that will reset annually to a rate calculated based on the average of the Fund's NAV per share (the "Distribution Amount"), as reported for the final five trading days of the month preceding the announcement of distributions. The Distribution Amount applicable to Q1 2023 was reset based upon the results of the distribution rate calculation. The Distribution Amount applicable for future periods may be reset based upon the results of the distribution rate calculation.

There can be no guarantee that the Level Distribution Policy will be successful in its goals. The Fund's ability to maintain a stable level of distributions to shareholders will depend on a number of factors, including changes in the financial market, market interest rates, and performance of overall equity and fixed-income markets. As portfolio and market conditions change, the ability of the Fund to continue to make distributions in accordance with the Level Distribution Policy may be affected.

Shareholders have the option of reinvesting distributions in additional common shares through the Fund's Dividend Reinvestment Plan, or electing to receive cash by contacting AST, their financial adviser or their brokerage firm.  Shareholders who wish to receive their distribution in cash must opt out of the Fund's Dividend Reinvestment Plan. For further information, shareholders should carefully read the description of the Dividend Reinvestment Plan in the prospectus.

The Board may amend the Level Distribution Policy, the Distribution Amount or distribution intervals, or the Fund may cease distributions entirely, at any time, without prior notice to shareholders. The announcement of, amendment to, or later termination of this Level Distribution Policy may have an adverse effect on the market price of the Fund's shares of common stock.

The Fund may at times, in its discretion, pay out less than the entire amount of net investment income earned in any particular period and may at times pay out such accumulated undistributed income in addition to net investment income earned in other periods in order to permit the Fund to maintain a stable level of distributions. As a result, the dividend paid by the Fund to shareholders for any particular period may be more or less than the amount of net investment income earned by the Fund during such period. The Fund intends to distribute all realized net long-term capital gains, if any, no more than once every twelve months.

To the extent that sufficient investment income is not available on a monthly basis, the Fund's distributions may consist of return of capital in order to maintain the distribution amount. A return of capital occurs when some or all of the money that shareholders invested in the Fund is paid back to them. A return of capital does not necessarily reflect the Fund's investment performance and should not be confused with 'yield' or 'income.' Any such returns of capital will decrease the Fund's total assets and, therefore, could have the effect of increasing the Fund's expense ratio. In addition, the Level Distribution Policy may require the Fund to sell its portfolio securities at a less than opportune time to meet the distribution amount.

Shareholders should not make any conclusions about the Fund's investment performance from the amount of the Fund's distributions or the Fund's Level Distribution Policy. With each distribution that does not consist solely of net investment income, the Fund will issue a notice to shareholders that will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to shareholders are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the distributions for tax reporting purposes will depend upon the Fund's investment experience during its full fiscal year and may be subject to changes based on tax regulations. The Fund will send individual shareholders a Form 1099-DIV for each calendar year that will tell them how to report these distributions for federal income tax purposes.  Please consult your tax advisor about any tax implications applicable to you in light of your particular circumstances.

About the Highland Global Allocation Fund

The Highland Global Allocation Fund ("HGLB") (NYSE: HGLB) is a closed-end fund managed by NexPoint Asset Management, L.P. For more information visit www.nexpointassetmgmt.com/global-allocation-fund.

About NexPoint Asset Management, L.P.

NexPoint Asset Management, L.P. is an SEC-registered investment adviser. It is the adviser to a suite of registered funds, including open-end mutual funds, closed-end funds, and an exchange-traded fund. For more information visit nexpointassetmgmt.com.

The distribution may include a return of capital. Please refer to the 19(a)-1 Source of Distribution Notice on the Highland Funds website for Section 19 notices that provide estimated amounts and sources of the fund's distributions, which should not be relied upon for tax reporting purposes.

No assurance can be given that the Fund will achieve its investment objectives.

Shares of closed-end investment companies frequently trade at a discount to net asset value. The price of the Fund's shares is determined by a number of factors, several of which are beyond the control of the Fund. Therefore, the Fund cannot predict whether its shares will trade at, below or above net asset value. Past performance does not guarantee future results.

Investors should consider the investment objectives, risks, charges and expenses of the Highland Global Allocation Fund carefully before investing. This and other information can be found in the Fund's prospectus, which may be obtained by calling 1-866-745-0264 or visiting www.highlandfunds.com. Please read the prospectus carefully before you invest.

CONTACTS
Investor Relations
Kristen Thomas
IR@nexpoint.com
Media Relations
Prosek Partners for NexPoint
Pro-nexpoint@prosek.com

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SOURCE Highland Global Allocation Fund

FAQ

What is the distribution amount declared by Highland Global Allocation Fund (HGLB) for April 2023?

Highland Global Allocation Fund (HGLB) declared a monthly distribution of $0.084 per share for April 2023.

When will the distributions for HGLB be paid to shareholders?

Distributions for HGLB will be payable on April 28, May 31, and June 30, 2023.

What is the annual distribution rate set by HGLB?

HGLB has set an annual distribution rate of 8.5% based on the average of its net asset value for the last five trading days of 2022.

Can shareholders reinvest their HGLB distributions?

Yes, HGLB shareholders have the option to reinvest their distributions through the Dividend Reinvestment Plan.

What factors might affect HGLB's distribution policy?

HGLB's ability to maintain distributions is affected by market conditions, interest rates, and overall performance of equity and fixed-income markets.