Healthcare Opportunities Fund

Fund Overview

NexPoint Healthcare Opportunities Fund is a closed-end interval fund designed to take a differentiated strategy, pursuing its investment objective by investing, under normal circumstances, at least 80% of its assets in the healthcare industry.

The Fund seeks total return consisting of current income and longer-term capital appreciation by primarily investing in equity and debt healthcare securities.*

Fund Attributes*

Who We Are

NexPoint Healthcare Opportunities Fund is a continually offered, non-diversified, closed-end management investment company. The Fund operates as an interval fund1, which is a type of closed-end fund, and is sponsored by NexPoint Advisors, L.P., an affiliate of Highland Capital Management, L.P. (“Highland”). Highland is an institutional investment firm and one of the largest and most experienced global alternative credit and equity managers.

About Highland Capital Management2

•  Founded 25 years ago
•  $10 billion in assets under management
•  $4.1 billion in loans
•  $1.1 billion in healthcare equity & credit

Why Healthcare?

Healthcare is the largest component of the American economy, accounting for more than 17.2% of the nation’s gross domestic product3. It is also the fastest growing segment, forecast to increase above 20% of GDP in the next few years.3 We believe demographic trends and governmental changes are contributing factors to unprecedented transformation in the industry.

Highland’s Healthcare Experience

Highland has a long history as a leading alternative asset manager with a historical focus on the healthcare sector, including over $12 billion of investments over the last five years.2 Highland currently manages $1.1 billion in healthcare assets in the form of institutional funds, mutual funds and interval funds.2 Highland’s experienced team of 6 healthcare industry investment specialists includes experts in biotechnology, pharmaceuticals and other healthcare sub-sectors with an average of >15 years of professional experience.4 We believe our specialized expertise affords us the ability to identify the “winners” and provide investors with a unique opportunity from the ongoing strength and historic change in the quickly evolving healthcare sector.

*There can be no assurance that the Fund will achieve its investment objectives.
**Distributions are not guaranteed and may be suspended, modified or terminated at the discretion of the board of trustees. Distributions may be paid from offering proceeds and may include a return of capital or borrowed funds, which may lower overall returns to the investor and may not be sustainable.

1. An interval fund is a type of investment company that periodically offers to repurchase its shares from shareholders. That is, the Fund periodically offers to buy back a stated portion of its shares from shareholders. Shareholders are not required to accept these offers and sell their shares back to the Fund. Legally, interval funds are classified as closed-end funds, but they are different from traditional closed-end funds in that:

  • Their shares typically do not trade on the secondary market. Instead, their shares are subject to periodic repurchase offers by the fund at a price based on net asset value.
  • They are permitted to continuously offer their shares at a priced based on the Fund’s net asset value.

An interval fund will make periodic repurchase offers to its shareholders, generally every three, six or twelve months, as disclosed in the fund’s prospectus and annual report. The interval fund also will periodically notify its shareholders of the upcoming repurchase dates. When the fund makes a repurchase offer to ts shareholders, it will specify a date by which shareholders must accept the repurchase offer. The actual repurchase will occur at a later, specified date.

2. Source: As of September 30, 2018, inclusive of Highland Capital Management, L.P. and affiliates, based on fee calculation AUM. Includes affiliate institutional products.

3. “National Healthcare Expenditures Projections 2013-2023 Table 1: National Health Expenditures and Selected Economic Indicators, Levels and Annual Percent Change: Calendar Years 2007-2023,” U.S. Dept. of Health and Human Services-Centers for Medicare and Medicaid Services, Office of the Actuary, January 2014.

4. Includes employees of Highland Capital Management, L.P. and affiliates.

Fund Literature
SEC Filings
Investor Forms

Fund Facts

Share
Class
Ticker CUSIP Gross
Expense
Ratio
Net
Expense
Ratio
Class A NXHAX 65343K104 2.53 2.00
Class C NXHCX 65343K203 3.28 2.75
Class L NXHLX 65343K302 2.78 2.25
Class Z NXHZX 65343K401 2.28 1.75

The Advisor has contractually agreed to waive its fees and to pay or absorb the ordinary annual operating expenses of the Fund (including organizational and offering expenses, but excluding distribution fees, interest, dividend expenses on short sales, brokerage commissions and other transaction costs, acquired fund fees and expenses, taxes, litigation expenses and extraordinary expenses), (the “Expense Limitation”). If the Fund incurs expenses excluded from the Expense Limitation Agreement, the Fund’s expense ratio would be higher and could exceed the Expense Limitation. The Expense Limitation Agreement may not be amended or terminated for one year from May 1, 2019, unless approved by the Board.

Before investing in the Fund, you should carefully consider the Fund’s investment objectives, risks, charges and expenses. For a copy of a prospectus which contains this and other information, please visit our website at www.nexpointfunds.com or call 1-844-485-9167. Please read the fund prospectus carefully before investing.

RISK FACTORS