DALLAS, April 1, 2022 /PRNewswire/ — Highland Global Allocation Fund (NYSE: HGLB) (“the “Fund”) today announced the declaration of monthly distributions of $0.081 per share, payable on the dates indicated below. As part of the Fund’s level distribution policy, the annual distribution rate has been reset to an amount equal to 8.5% of the Fund’s average net asset value (“NAV”) per share, as published for the last five trading days of the 2021 calendar. year. The Fund declares distributions of $0.081 per month from April to June 2022.

The following dates apply to declared distributions:

Secondment date

Registration Date

Payment date

April 21, 2022

April 22, 2022

April 29, 2022

May 23, 2022

May 24, 2022

May 31, 2022

June 22, 2022

June 23, 2022

June 30, 2022

About the level distribution policy

In March 2019, the Board of Directors of the Fund (the “Board”) has approved a level distribution policy (the “Leveled Distribution Policy”) under which the Fund pays monthly distributions to shareholders at a constant and fixed rate (but unsecured) which will be reset each year at a rate calculated on the basis of the average net asset value of the Fund per share (the “distribution amount”), as published for the last five trading days of the month preceding the announcement distributions. The distribution amount applicable to the first quarter of 2022 has been reset based on the results of the distribution rate calculation. The applicable distribution amount for future periods may be reset based on the results of the distribution rate calculation.

There can be no guarantee that the level distribution policy will achieve its objectives. The ability of the Fund to maintain a stable level of distributions to shareholders will depend on a number of factors, including financial market developments, market interest rates and the overall performance of the equity and income securities markets. fixed. As portfolio and market conditions change, the ability of the Fund to continue to pay 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 advisor or brokerage firm. Shareholders wishing to receive their distribution in cash must opt ​​out of the Fund’s dividend reinvestment plan. For more information, shareholders are invited to carefully read the description of the Dividend Reinvestment Plan in the prospectus.

The Board may change the level distribution policy, distribution amount or distribution intervals, or the Fund may cease distributions entirely, at any time without notice to shareholders. The announcement, modification or subsequent termination of this level distribution policy may have an adverse effect on the market price of the common shares of the Fund.

The Fund may at times, at its discretion, pay out less than the total amount of net investment income earned in a particular period and may at times pay out such undistributed accumulated income in addition to net investment income earned in other periods to allow the Fund to maintain a stable level of distributions. Accordingly, the dividend paid by the Fund to shareholders for a given period may be more or less than the amount of net investment income earned by the Fund during that period. The Fund intends to distribute all net long-term realized 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, distributions from the Fund may consist of a return of capital in order to maintain the amount of the distribution. A return of capital occurs when some or all of the money shareholders have invested in the Fund is returned to them. A return of capital does not necessarily reflect the investment performance of the Fund and should not be confused with ‘yield’ or ‘income’. Such repayments of capital will reduce the total assets of the Fund and therefore may have the effect of increasing the expense ratio of the Fund. In addition, the level distribution policy may require the Fund to sell the securities in its portfolio at a less than opportune time to meet the distribution amount.

Shareholders should not draw 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 which will provide details of the amount and composition of the distribution and other related information. The amounts and sources of distributions set forth in the Notice to Shareholders are estimates only and are not provided for tax reporting purposes. The actual amounts and sources of distributions for tax reporting purposes will depend on the investment experience of the Fund over its full financial year and may be subject to change depending on tax regulations. The Fund will send individual shareholders a Form 1099-DIV for each calendar year that will tell them how to report such distributions for federal income tax purposes. Please consult your tax advisor regarding any tax consequences that apply to you based on your particular circumstances.

About the Highland Global Allocation Fund

The Highland Global Allocation Fund (“HGLB”) (NYSE: HGLB) is a closed-end fund managed by Highland Capital Management Fund Advisors, LP For more information, visit www.highlandfunds.com/global-allocation-fund.

About Highland Capital Management Fund Advisors, LP

Highland Capital Management Fund Advisors, LP is an SEC-registered investment adviser. He advises a range of registered funds, including open-end mutual funds, closed-end funds and an exchange-traded fund. For more information, visit www.highlandfunds.com.

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

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

Shares of closed-end investment companies often trade at a price below net asset value. The price of shares in the Fund is determined by a number of factors, many 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 carefully consider the Highland Global Allocation Fund’s investment objectives, risks, charges and expenses before investing. This and other information can be found in the Fund’s prospectus, which can be obtained by calling 1-866-745-0264 or by visiting www.highlandfunds.com. Please read the prospectus carefully before investing.


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SOURCE Highland Global Allocation Fund