Dallas – October 01, 2026 -- Highland Global Allocation Fund (NYSE: HGLB) has declared monthly distributions of $0.085 per share for October, November and December 2026, under an annual distribution rate reset to 8.5% of the fund's average net asset value.
Fund locks annual rate to 8.5% of year-end NAV average
The 8.5% rate was calculated using the average NAV per share reported over the final five trading days of the 2025 calendar year, per the fund's Level Distribution Policy. NexPoint Asset Management, L.P., the SEC-registered adviser managing the closed-end fund, confirmed the Q3 2026 Distribution Amount was reset based on this calculation and may be adjusted again in future periods.
Board-approved policy dates to March 2019
The Fund's Board of Trustees approved the Level Distribution Policy in March 2019 to provide shareholders with fixed monthly payouts rather than fluctuating distributions tied strictly to net investment income. The policy allows the fund to distribute accumulated income from prior periods alongside current earnings to maintain payout stability.
Distributions may include return of capital, fund warns
When monthly investment income falls short of the declared distribution amount, the fund may pay the difference as a return of capital -- repayment of shareholders' original investment rather than income or yield. Such returns reduce total fund assets and can raise the fund's expense ratio; the policy may also force the fund to sell portfolio securities at disadvantageous times to meet payout obligations.
Shareholders can reinvest distributions through the Dividend Reinvestment Plan or elect cash payments by contacting AST, their financial adviser or brokerage firm. The Board retains authority to amend or terminate the policy at any time without prior shareholder notice, a change the fund states could adversely affect its share price.