NexPoint Credit Strategies Fund Announces the Regular Monthly Dividend
August 03 2015 - 9:26PM
Business Wire
NexPoint Credit Strategies Fund (NYSE: NHF) (“NHF” or the
“Fund”) today announced its regular monthly dividend on its common
stock of $.06 per share. The dividend will be
payable on August 31, 2015 to shareholders of record at the close
of business August 24, 2015.
The Fund is a closed-end fund managed by NexPoint Advisors, L.P.
(the “Manager”), an affiliated adviser of Highland Capital
Management, L.P. The Fund invests primarily in below investment
grade debt and equity and has the ability to hedge risk. The
Manager attempts to deliver consistent returns in excess of the
Credit Suisse Hedge Fund and the HFRX Global Hedge Fund indices in
a transparent, registered fund format with consistent monthly
dividends.
Fund Earnings
In 2014, the Manager recommended, and the board approved, two
dividend increases totaling 20%. The increases were driven by
increased earnings on portfolio positions. Prior to recommending
increases in the dividend to the board, the Manager carefully
analyzed each position in the Fund and its long-term earning
potential as well as the Fund’s expense run rate. While no
assurance can be given as to the future level of dividends, the
Manager believes NHF can continue to pay the $.06 per share
dividend for the remainder of 2015 based on the following
annualized projected earnings rate analysis as of June 30, 2015,
excluding any one-time income and expense items:
Income/Expense Item
Amount ($m) Estimated Interest Income (including discount
amortization) $ 22.2 Estimated Dividend Income (including
CLO equity) 58.3 Total Income 80.5
Expense Projection (21.2 ) Net Income Available to Common
Shareholders $ 59.3 Per Share Net Income $ 0.077
Current Per Share Dividend $ 0.060
Total Returns as of 7/31/15
1-year 3-year
5-year Since Inception (6/29/06)
NexPoint Credit Strategies Fund (NAV) 4.11 %
30.91 % 19.71 % 4.97 %
NexPoint Credit Strategies Fund (Market Price)
1.14 % 28.96 % 16.09 %
2.65 %
Total Returns as of 6/30/15
1-year 3-year
5-year Since Inception (6/29/06)
NexPoint Credit Strategies Fund (NAV) 4.42 %
32.61 % 20.80 % 5.32 %
NexPoint Credit Strategies Fund (Market Price)
6.13 % 32.47 % 18.92 %
3.53 %
Total operating expenses as of the most recent fund annual
report are 1.68%. Performance data represents past performance,
which does not guarantee future results. Current performance may be
higher or lower than the figures shown. Investment return and
principal value will fluctuate with market conditions, and you may
have a gain or loss when you sell your shares. For most recent
month-end performance please visit www.nexpointadvisors.com or
call 866-351-4440.
The information in this press release contains "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements can be identified by the
fact that they do not relate strictly to historical or current
facts. Forward-looking statements often include words such as
"anticipates," "estimates," "expects," "projects," "intends,"
"plans," "believes" and words and terms of similar substance in
connection with discussions of future operating or financial
performance.
These forward-looking statements are based on our current
expectations and assumptions regarding the fund’s portfolio and
performance, the economy and other future conditions and forecasts
of future events, circumstances and results. As with any
projection or forecast, they are inherently susceptible to
uncertainty and changes in circumstances. The fund’s actual
results may vary materially from those expressed or implied in its
forward-looking statements.
Investors should consider the investment objectives, risks,
charges and expenses of the NexPoint Credit Strategies Fund
carefully before investing. This and other information can be found
in the Fund's prospectuses, which may be obtained by calling
1-866-351-4440 or
visiting www.nexpointadvisors.com. Please read
the prospectus carefully before you invest.
Interest Rate Risk. Interest rate risk is the risk
that debt securities, and the Fund’s net assets, may decline in
value because of changes in interest rates. Generally, fixed rate
debt securities will decrease in value when interest rates rise and
increase in value when interest rates decline.
Leverage Risk. The Fund uses leverage through
borrowings from notes and a credit facility, and may also use
leverage through the issuances of preferred shares. The use of
leverage magnifies both the favorable and unfavorable effects of
price movements in the investments made by the Fund. Insofar as the
Fund employs leverage in its investment operations, the Fund will
be subject to substantial risks of loss.
Credit Risk. Investments rated below investment
grade are commonly referred to as high-yield, high risk or “junk
debt.” They are regarded as predominantly speculative with respect
to the issuing company’s continuing ability to meet principal and/
or interest payments.
Illiquidity of Investments Risk. The investments
made by the Fund may be illiquid, and consequently the Fund may not
be able to sell such investments at prices that reflect the
Investment Adviser’s assessment of their value or the amount
originally paid for such investments by the Fund.
About NexPoint Credit Strategies Fund
NexPoint Credit Strategies Fund is a closed-end fund managed by
NexPoint Advisors, L.P. The Fund’s investment objectives are to
provide both current income and capital appreciation. The Fund is
invested primarily in below investment grade debt and equity
securities and has the ability to hedge risk. The manager attempts
to exceed the return of Dow Jones Credit Suisse Hedge Fund Index in
a transparent, registered fund format with monthly dividends. An
investment in the Fund is not appropriate for all investors. 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20150803006466/en/
Highland Capital Management, L.P.Investor Relations:Brian Mitts,
972-419-2556BMitts@highlandfunds.comorPublic Relations:Daniel
Martin, 972-419-6293DMartin@highlandcapital.com
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