DALLAS, April 1, 2016 /PRNewswire/ -- Highland Capital Management Fund Advisors, L.P. ("Highland"), investment adviser to Highland HFR Equity Hedge ETF ("HHDG"), Highland HFR Global ETF ("HHFR") and Highland HFR Event-Driven ETF ("DRVN")(each, a "Fund", and collectively, the "Funds"), announced today that it will be closing and liquidating the Funds effective April 11, 2016.
Highland has chosen to focus on core products and will continue offering the Highland/iBoxx Senior Loan ETF ("SNLN"), which seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Markit iBoxx USD Liquid Leveraged Loan Index, a rules-based index consisting of some of the largest, most liquid leveraged loans. SNLN is a category leader in both performance and tracking error and has experienced solid trading volumes. As such, we believe SNLN has favorable prospects for continued growth.
Highland announced that the last date for authorized participants to create units in HHDG, HHFR and DRVN will be April 11, 2016 and the last date to redeem shares will be on or before 4:00 PM EST on April 13, 2016.
The last day of trading for HHDG, HHFR and DRVN on the NYSE Arca (the "Cessation Date") is expected to be April 11, 2016, after which the Funds shall cease their business as investment companies and shall not engage in any business activities except for the purpose of winding up their business affairs, preserving the value of their assets, discharging or making reasonable provision for the payment of all their liabilities, and liquidating and distributing their remaining assets to the shareholders of the Funds.
The proportionate interests of the shareholders in the net assets of each Fund will be fixed on the basis of their respective share holdings at the close of business on April 11, 2016.
On or about April 14, 2016, each Fund shall make to each shareholder of record of the applicable fund as of the Cessation Date a liquidating distribution equal to the shareholder's proportionate interest in the net assets of the Fund, in the form of either the cash or cash equivalents into which the portfolio securities of the Fund were converted. The liquidation of each Fund will be a taxable event for shareholders that do not hold shares through tax-advantaged arrangements.
About Highland Capital Management Fund Advisors, L.P.
Highland Capital Management Fund Advisors, L.P. is an SEC-registered investment adviser which, together with our affiliates, has approximately $18 billion of assets under management. Founded in 1993 by Jim Dondero and Mark Okada, Highland is one of the largest and most experienced global alternative credit managers. Highland specializes in credit strategies, such as credit hedge funds, long only funds and separate accounts, distressed and special situation private equity, and collateralized loan obligations (CLOs). Highland also offers alternative investments, including emerging markets, long/short equities, and natural resources. Highland's diversified client base includes public pension plans, foundations, endowments, corporations, financial institutions, fund of funds, governments, and high net-worth individuals. Highland is headquartered in Dallas, Texas and maintains offices in New York, Sao Paolo, Singapore, and Seoul. For more information, visit www.highlandfunds.com.
SEI Shareholder Services
Investment return and principal value will fluctuate so that you may have a gain or a loss when you sell your shares. You should consider a fund's investment objectives, risks and charges and expenses carefully before investing. For this and other important information, please obtain a fund prospectus by calling 1-855-799-4757 or visiting www.highlandfunds.com. Please read it carefully before investing. Past performance is no guarantee of future results. Distributor: SEI Investments Distribution Co., Member: FINRA.
Equity investments are subject to market fluctuations, the fund's share price can fall because of weakness in the broad market, a particular industry, or specific holdings. Investing in non-diversified funds generally will be more volatile and loss of principal could be greater than investing in more diversified funds. Emerging market and international investments involve risk of capital loss from unfavorable fluctuations in currency values, differences in generally accepted accounting principles, economic or political instability in other nations or increased volatility and lower trading volume.
Past performance does not guarantee future results. Index returns do not represent fund returns. One cannot invest directly in an index.
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SOURCE Highland Capital Management Fund Advisors, L.P.