Highland Global Allocation Fund

HGLB

Market cap $210M

Highland Global Allocation Fund remains a hold due to concentration risks and sensitivity to interest rate changes. HGLB trades at a 27% discount to NAV, but its income generation relies heavily on positive net realized gains rather than stable net investment income. The fund's high 11.4% yield is attractive, yet dividend sustainability is questionable if rates fall or markets turn negative.

DALLAS, Jan. 2, 2026 /PRNewswire/ -- Highland Global Allocation Fund (NYSE: HGLB) ("the "Fund") today announced the declaration of monthly distributions of $0.085 per share, payable on the dates noted below. Under the Fund's level distribution policy, the annual distribution rate has been reset to an amount equal to 8.5% of the average of the Fund's net asset value ("NAV") per share, as reported for the final five trading days of the 2025 calendar year.

DALLAS , Oct. 7, 2025 /PRNewswire/ -- The Highland Global Allocation Fund (NYSE: HGLB) ("HGLB" or the "Fund") today announced an addition to the Fund's portfolio management team. Effective October 7, 2025.

Highland Global Allocation Fund offers global exposure and a high 11.6% yield, but faces concentration and earnings consistency risks. HGLB trades at a deep 35.76% discount to NAV, yet its heavy reliance on a few holdings increases vulnerability to market downturns. Dividend coverage is inconsistent, with payouts fueled by both net investment income and return of capital, affecting income stability and tax efficiency.

DALLAS , Oct. 1, 2025 /PRNewswire/ -- Highland Global Allocation Fund (NYSE: HGLB) ("the "Fund") today announced the declaration of monthly distributions of $0.088 per share, payable on the dates noted below. Under the Fund's level distribution policy, the annual distribution rate has been reset to an amount equal to 8.5% of the average of the Fund's net asset value ("NAV") per share, as reported for the final five trading days of the 2024 calendar year.

DALLAS , July 1, 2025 /PRNewswire/ -- Highland Global Allocation Fund (NYSE: HGLB) ("the "Fund") today announced the declaration of monthly distributions of $0.088 per share, payable on the dates noted below. Under the Fund's level distribution policy, the annual distribution rate has been reset to an amount equal to 8.5% of the average of the Fund's net asset value ("NAV") per share, as reported for the final five trading days of the 2024 calendar year.

Highland Global Allocation Fund offers a high-yield and global diversification, but its distribution history is inconsistent and partially reliant on return of capital. The fund trades at a persistent discount to NAV, reflecting structural or performance concerns compared to higher-quality closed-end funds. HGLB's heavy exposure to interest rate-sensitive sectors and reliance on net realized gains make it vulnerable in the current high-rate environment.

DALLAS , April 1, 2025 /PRNewswire/ -- Highland Global Allocation Fund (NYSE: HGLB) ("the "Fund") today announced the declaration of monthly distributions of $0.088 per share, payable on the dates noted below. Under the Fund's level distribution policy, the annual distribution rate has been reset to an amount equal to 8.5% of the average of the Fund's net asset value ("NAV") per share, as reported for the final five trading days of the 2024 calendar year.

The Highland Global Allocation Fund is a closed-end fund investing in U.S. and international equities, fixed income, and select alternative investments for long-term growth. HGLB offers a 12.69% yield with monthly dividends but has a low 5-year dividend growth rate due to past reductions. The fund's heavy concentration in MidWave Wireless (34%) and significant exposure to real estate and energy sectors pose diversification and economic risks.

Closed-end funds offer unique opportunities due to their discount/premium mechanisms, allowing share prices to deviate from net asset value per share in a wild manner. In general, CEFs often provide diverse exposure across equity and fixed-income portfolios, and they even offer exposure to hybrid portfolios, but also allowing for sector-specific exposure. One important note is that not all premiums or discounts indicate a buying or selling opportunity; instead, it can make more sense to examine relative value over historical periods.