DALLAS, March 14, 2018 /PRNewswire/ -- NexPoint
Credit Strategies Fund (NYSE: NHF) (the "Fund") today announced the
Fund will change its name to NexPoint Strategic Opportunities Fund,
effective on or about March 19, 2018.
The Fund's CUSIP, 65340G205, will not change. In addition, the
Fund's investment objective of providing both current income and
capital appreciation will remain the same and the Fund will
continue to invest in the following categories of instruments: (i)
secured and unsecured floating and fixed rate loans; (ii) bonds and
other debt obligations; (iii) debt obligations of stressed,
distressed and bankrupt issuers; (iv) structured products,
including but not limited to, mortgage-backed and other
asset-backed securities and collateralized debt obligations; and
(v) equities; however, the Fund will no longer be required to
invest at least 80% of its assets in categories (i)-(iv). NexPoint
Advisors, L.P., the Fund's investment adviser, believes this will
position the Fund for continued strong performance and support the
Fund's dividend coverage in the current market environment by
allowing the Fund to purchase attractive investments with higher
yield and lower expected volatility than many credit
securities.
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.
Closed-End Fund Risk. The Fund is a
closed-end investment company designed primarily for long-term
investors and not as a trading vehicle. No assurance can be given
that a shareholder will be able to sell his or her shares on the
NYSE when he or she chooses to do so, and no assurance can be given
as to the price at which any such sale may be effected.
Industry Concentration Risk. The Fund must
invest at least 25% of the value of its total assets at the time of
purchase in securities of issuers conducting their principal
business activities in the real estate industry. The Fund may be
subject to greater market fluctuations than a fund that does not
concentrate its investments in a particular industry. Financial,
economic, business, and other developments affecting issuers in the
real estate industry will have a greater effect on the Fund, and if
securities of the real estate industry fall out of favor, the Fund
could underperform, or its NAV may be more volatile than, funds
that have greater industry diversification.
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. Non-payment of scheduled
interest and/or principal would result in a reduction of income to
the Fund, a reduction in the value of the asset experiencing
non-payment and a potential decrease in NAV of the Fund.
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.
Investors should consider the investment objectives,
risks, charges and expenses of the NexPoint Credit Strategies Fund
(to be renamed NexPoint Strategic Opportunities Fund) carefully
before investing. This and other information can be found in the
Fund's prospectus, which may be obtained by calling 1-866-351-4440
or
visiting www.nexpointadvisors.com.
Please read the prospectus carefully before you invest.
About NexPoint Credit Strategies Fund
NexPoint Credit Strategies Fund (to be renamed NexPoint Strategic
Opportunities 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, equity securities and
real estate and has the ability to hedge risk. The Fund's
investment adviser attempts to deliver consistent returns in excess
of the Dow Jones Credit Suisse Hedge Fund and the HFRX Global Hedge
Fund indices in a transparent, registered fund format consistent
with monthly dividends. 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.
MEDIA CONTACT:
Lucy Bannon
lbannon@highlandcapital.com
+1 972-419-6272
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SOURCE NexPoint Advisors, L.P.