Fund NAV (As of May 28, 2020)
SYMBOLNAV
XNHFX$17.44
Fund AUM (As of May 28, 2020)
AUM
Total Net Assets$794.65 M
SymbolXNHFX
Inception06/29/06
Gross Expense Ratio2.14%
Net Expense Ratio2.14%
As of 05/28/2020
Net Asset Value (NAV)$17.44
As of 04/30/2020 MonthlyQuarterlyNAVMarket Price
Year To Date-20.42%-42.40%
One Year-25.01%-44.56%
Three Year-1.94%-14.21%
Five Year-3.76%-9.54%
Ten Year7.85%3.38%
Since Inception1.95%-1.05%



Update on Claymore Holdings LLC v. Credit Suisse AG Case | May 15, 2020

Update on the Claymore Holdings LLC v. Credit Suisse AG Case Related to the NexPoint Strategic Opportunities Fund

Posted May 15, 2020

The following provides additional information on the order from the Texas Supreme Court (the “Court”) in the Claymore Holdings LLC (“Claymore”) case against Credit Suisse, AG, Cayman Islands Branch, and Credit Suisse Securities (USA), LLC (“Credit Suisse”).

Claymore is the Highland Capital Management and NexPoint affiliate (together “Highland”) that pursued the collective claims on behalf of the Highland Income Fund (NYSE:HFRO) and the NexPoint Strategic Opportunities Fund (NYSE:NHF) (together the “Funds”).

The Texas Supreme Court (the “Court”) release an order on April 24, 2020. A party may file a motion for rehearing with the Court within a 15-day window following the issuance of an order or request an extension to move for rehearing.

Claymore requested an extension from the Court to move for rehearing, which has been granted.

Claymore now has until June 12, 2020 to file a motion for rehearing. Once a motion for rehearing has been filed, the Court has 90 days to respond with a decision on whether or not it will grant a rehearing.

No award amount has been recorded in the Funds’ net asset values at this time.

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Update on Claymore Holdings LLC v. Credit Suisse AG Case | April 29, 2020

Update on the Claymore Holdings LLC v. Credit Suisse AG Case Related to the NexPoint Strategic Opportunities Fund

Posted April 24, 2020 | Updated April 29, 2020

The following provides additional information on the order released on April 24, 2020 from the Texas Supreme Court (the “Court”) in the case against Credit Suisse, AG, Cayman Islands Branch, and Credit Suisse Securities (USA), LLC (“Credit Suisse”).

Background on the Case

The case was filed in 2013 by Claymore Holdings LLC (“Claymore”), the Highland Capital Management and NexPoint affiliate (together “Highland”) that pursued the collective claims on behalf of the Highland Income Fund (NYSE:HFRO) and the NexPoint Strategic Opportunities Fund (NYSE:NHF) (together the “Funds”).

Following a bench trial and jury trial, a trial court issued a judgment in favor of Claymore in 2015, which was confirmed by an appellate court in 2018. An appeal of that ruling sent the case to the Texas Supreme Court, which heard the case on January 8, 2020. The Court issued an order on the case on April 24, 2020.

Information on the Texas Supreme Court’s April 24, 2020 Order

The Court’s April 24 order affirmed in part and reversed in part the 2018 ruling from the court of appeals. The Court upheld the $40 million fraud verdict that resulted from the jury trial; however, it did not uphold the $211 million in equitable relief awarded to Claymore by the trial court following the bench trial. In its opinion, the Court noted procedural issues related to the calculation of damages among the reasons for reversing part of the appellate court ruling.

The Court did not include a total award amount in its order, and instead remanded back to the trial court for a determination of damages.

Information on the Subsequent Legal Process with the Texas Supreme Court

A party may file a motion for rehearing with the Court within a 15-day window following the issuance of an order. Once a motion for rehearing has been filed, the Court has 90 days to respond with a decision on whether or not it will grant a rehearing.

Information on Highland’s Response to the Order

While Highland is encouraged that the Court recognized the fraud that Credit Suisse committed against the Funds, we believe the decision to reverse part of the appellate court ruling does not fully account for information on damages that Claymore presented to the lower courts.

Highland’s focus is on protecting our investors’ interests, so while the Court’s order further extends the legal process, it does not change our ultimate objective of recovering monies for our investors.  We remain committed to holding Credit Suisse accountable for the fraud, contract breaches, and other violations, and the damages caused to the Funds as a result of those actions.

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Performance data represents past performance, which does not guarantee future results. Current performance may differ from 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. See the Performance tab for most recent month-end performance.

The Expense Ratio shown is reported in the Fund's Annual Report dated December 31, 2017.

Source: American Stock Transfer & Trust Company, LLC

The performance data quoted here represents past performance and is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor’s shares when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted.

Please consider the investment objectives, risks, charges and expenses of NexPoint Strategic Opportunities Fund carefully before investing. A prospectus with this and other information about NexPoint Strategic Opportunities Fund may be found on our website's Fund Literature tab. You may also obtain a prospectus by calling 866-351-4440. Please read the prospectus carefully before investing.

Non-Payment Risk. Senior Loans, like other corporate debt obligations, are subject to the risk of non-payment of scheduled interest and/or principal. Non-payment would result in a reduction of income to the Fund, a reduction in the value of the Senior Loan experiencing non-payment and a potential decrease in the NAV of the Fund.

Credit Risk. The Fund may invest all or substantially all of its assets in Senior Loans or other securities that are rated below investment grade and unrated Senior Loans deemed by to be of comparable quality. Securities rated below investment grade are commonly referred to as “high yield securities” or “junk securities.” They are regarded as predominantly speculative with respect to the issuing company’s continuing ability to meet principal and interest payments. Investments in high yield Senior Loans and other securities may result in greater NAV fluctuation than if the Fund did not make such investments.

Interest Rate Risk. The Fund’s NAV will usually change in response to interest rate fluctuations. When interest rates decline, the value of fixed rate securities already held by the Fund can be expected to rise. Conversely, when interest rates rise, the value of existing fixed rate securities can be expected to decline.

Senior Loans Risk. The risks associated with Senior Loans are similar to the risks of below investment grade securities, although Senior Loans are typically senior and secured in contrast to other below investment grade securities, which are often subordinated and unsecured.

Risk of Restrictions on Resale. Senior Loans may not be readily marketable and may be subject to restrictions on resale. As a result, the ability of the Fund to dispose of its investments in a timely fashion and at an advantageous price may be restricted.

Ongoing Monitoring Risk. On behalf of the several Lenders, the Agent generally will be required to administer and manage the Senior Loans and, with respect to collateralized Senior Loans, to service or monitor the collateral.

Closed-End Fund Risk. The Fund is a closed-end investment company designed primarily for long-term investors and not as a trading vehicle. The Fund does not intend to list its shares for trading on any national securities. There is not expected to be any secondary trading market in the shares, and the shares should be considered illiquid.

Leverage Risk. Leverage may increase the risk of loss, cause fluctuations in the market value of the Fund’s portfolio to have disproportionately large effects or cause the net asset value (“NAV”) of the Fund generally to decline faster than it would otherwise.