NexPoint Event Driven Fund Celebrates Three-Year Track Record

Fund's Marks Three-Year Milestone Ranked as Top Event Driven Fund^1,2

DALLAS, Jan. 29, 2025 /PRNewswire/ -- NexPoint, a multibillion-dollar alternative investment firm, today announced the three-year anniversary of the NexPoint Event Driven Fund (HHCZX) (the "Fund"). The Fund celebrates this milestone with strong performance, ranking as the top fund in the Event Driven category over this time period.

The NexPoint Event Driven Fund is an actively managed, open-end mutual fund designed to capitalize on event-driven catalysts that influence security prices. The strategy was launched on January 20, 2022, as a complementary product to the NexPoint Merger Arbitrage Fund, which is celebrating its own milestone in reaching its 10-year track record.

While the NexPoint Merger Arbitrage Fund solely focuses on investments in companies involved in publicly announced mergers, its in-depth research and due diligence processes provide visibility into a range of event catalysts. The NexPoint Event Driven Fund builds on that same rigorous process with flexibility to capture a broader universe of investment opportunities stemming from a range of events.

"The NexPoint Event Driven Fund harnesses the strength of our disciplined research, risk analysis, and portfolio management processes—honed over a decade of operating the merger arbitrage fund—while offering the flexibility to pursue total return across a wide array of event catalysts," said Scott Johnson, Portfolio Manager at NexPoint. "This milestone validates our approach, and the strong performance of both funds underscores our ability to deliver innovative and effective investment solutions to our clients."

Event catalysts may include mergers and acquisitions, restructurings, spin-offs, strategic reviews, bankruptcies, take-over rumors, or other corporate actions. This strategy is well positioned going into 2025 given the market outlook and expected M&A environment.

"We are proud of the Fund's accomplishments over the past three years; however, what excites us most are the opportunities on the horizon," Johnson said. "With improving market conditions, rising M&A activity, and shifting regulatory regimes, among other trends, we are in an environment conducive to event catalysts that favors our strategy. We look forward to capitalizing on these opportunities and continuing to deliver value to investors."

About the NexPoint Event Driven Fund

The NexPoint Event Driven Fund (: HHCZX) is an actively managed absolute return mutual fund dedicated to generating performance by capitalizing on specific events that can impact the prices of securities. These events can include mergers and acquisitions, restructurings, spin-offs, strategic reviews, bankruptcies, take-over rumors, or other corporate actions. For more information, visit https://www.nexpoint.com/funds/event-driven-fund/

Returns Since Strategy Inception January 20, 2022 (As of 12/31/2024)

Annualized Returns (%) as of 12/31/2024

About NexPoint

NexPoint is a multibillion-dollar alternative investment firm based in Dallas, Texas. The firm is structured around three major business areas: real estate, corporate credit and equities, and insurance solutions. NexPoint's businesses span asset classes, industries, and strategies, providing the flexibility to invest across capital structures and market environments. Serving a diverse client base, NexPoint's investment strategies are offered in a range of vehicles and fund structures, including mutual funds, public and private REITs, tax-advantaged vehicles, private funds, and separate accounts. For more information, visit nexpoint.com.

Risks & Disclosures

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 the performance data quoted. For performance data current to the most recent month-end, please call (833) 697-7253.

Before investing in the Fund, you should carefully consider the Fund's investment objectives, risks, charges and expense. For a copy of a prospectus or summary prospectus, which contains this and other information, please visit our website at nexpoint.com or call (833) 697-7253. Please read the fund prospectus carefully before investing.

FEES & EXPENSES

Gross Expense Ratio: Class A 3.42%, Class C 4.07% and Class Z⁵ 3.07%
Net Expense Ratio: Class A 2.73%, Class C 3.38% and Class Z⁵ 2.38%

The Net Expense Ratio excluding Investment Related Expenses is 1.50%. Investment Related expenses include acquired fund fees of 0.03% and dividend expense on short sales and other excluded expenses of 0.82%. Expenses stated as of the fund's most recent prospectus. The difference between gross and net expense ratios are due to contractual and/or voluntary waivers, if applicable. The Expense Cap will continue through at least October 31, 2025, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. Performance results reflect the contractual waivers and/or reimbursements of fund expenses by the Advisor. Absent this information, performance results would have been lower. The net expense ratio would be applicable to investors.

SALES CHARGES: Class A Max Sales Charge: 5.50%. Class C Contingent Deferred Sales Charge ("CDSC") is 1% within the first year from each purchase.

CONTACTS  

Investor Relations 

Kristen (Thomas) Griffith 

[email protected] 

Media Relations  

[email protected] 

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¹ Source: Morningstar, daily returns, as of January 20, 2025. HHCZX is ranked #1 in category, among 36 funds in the Morningstar Event Driven Category over the 3 year period ending January, 20, 2025.  The Class Z shares percentile rankings for the 3-year period ended January 20, 2025 was 1st percentile among 36 funds. The Morningstar Ranking Percentile compares a Fund's Morningstar risk and return scores with all the Funds in the same Category, where a percentile ranking of 1% represents the top of the category while higher numbers represent a lower rank, 100% = worst. Past performance does not guarantee future results.
²As of December 31, 2024, Morningstar ranked the NexPoint Event Driven Fund Class Z shares percentile rankings in the 9^th percentile , based on Total Return for the 1-year period among 40 funds in the Morningstar Event Driven Category. The Class Z shares percentile ranking for the 3-year period were 56^th percentile, among 37 funds. The Class Z shares percentile rankings for the 5-year period were in the 88^th percentile, among 37 funds. The Class Z shares percentile ranking for the 10-year period were  in the 93^rd percentile among 29 funds. The Morningstar Ranking compares a Fund's Morningstar risk and return scores with all the Funds in the same Category, where a ranking of 1 represents the top of the category while higher numbers represent a lower rank. Past performance does not guarantee future results. Prior to January 20, 2022, the Fund was managed pursuant to a different investment strategy. As a result of the difference in investment strategy, the performance information presented for periods prior to January 20, 2022 reflects management of the Fund consistent with investment strategies in effect during those periods and might have differed materially if the Fund's investments had been managed under its current investment strategies.
³ Prior to January 20, 2022, the Fund was managed pursuant to a different investment strategy. As a result of the difference in investment strategy, the performance information presented for periods prior to January 20, 2022 reflects management of the Fund consistent with investment strategies in effect during those periods and might have differed materially if the Fund's investments had been managed under its current investment strategies.
⁴ Only eligible investors may purchase Class Z Shares. Please refer to the prospectus for information and conditions.
⁵ Only eligible investors may purchase Class Z Shares. Please refer to the prospectus for information and conditions.

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SOURCE NexPoint