Highland Flexible Income  

The Highland Flexible Income UCITS Fund is a long-only, total return strategy focused on floating rate structured credit (CLOs).

The strategy seeks to generate high current income (currently 4% – 5%, net of hedging), plus the potential for incremental return through capital appreciation. CLOs are floating rate instruments that will benefit from rising rates. The Fund invests globally through a combination of fundamental security analysis and dynamic allocation across ratings categories.

Highland Capital is a pioneer in leveraged corporate credit investing. Founded by Jim Dondero and Mark Okada in 1993, Highland has been involved in the leveraged loan asset class since its infancy and was one of the first non-bank/insurance firm to issue a CLO in 1996.  Today, Highland is a global credit manager that specializes in mandates for investors seeking value-based, active exposure to public corporate credit. The Firm’s area of expertise is the leveraged finance market where it provides bespoke and commingled solutions in both single-sector and multi-sector strategies in leveraged loans, high yield bonds, and structured credit (CLOs).

Highland is an SEC-registered investment adviser. The Firm is headquartered in Dallas, Texas and maintains offices in New York, Sao Paulo, Singapore, Buenos Aires and Seoul.


KEY POINTS

Highland Flexible Income UCITS Fund

1

Targeted Access to Floating Rate Debt – Access to a 100% leveraged loan portfolio in UCITS form via CLO tranches.  CLO debt base rates reset quarterly, helping limit exposure to interest rate risks.  With yields near historic lows, floating rate debt may mitigate risks to future central bank tightening.

2

Market Inefficiencies Can Create Alpha Opportunities – CLO spreads offer significant yield pick-up similarly rated corporate credit.  As real-money investors’ take-up of CLOs gathers pace, spreads should continue to narrow.  Volatility of BB tranches have been high during periods of market weakness, providing compelling opportunities to enhance total return.

3

Structural Protection from Credit Loss – Overcollateralization can provide significant protection from default loss.  Collateral tests result in lower exposure to CCC issuers and second lien structures than the broad market index.

4

An Industry Pioneer – Highland Capital Management, L.P., issued one of the first non-bank CLOs in 1996.  Today, Highland has issued approximately $30Bn in CLOs and currently employs a 19 person team dedicated CLO and loan collateral research.

Terms and Conditions Apply

read the disclaimer

ML Capital Asset Management Ltd, 23 St. Stephen's Green, Dublin 2, D02 AR55, Ireland is licensed to provide Investment Management services to Professional Clients (including Collective Investment Schemes) by the Central Bank of Ireland.

MontLake UCITS Platform ICAV is an umbrella open-ended Irish collective asset-management vehicle with segregated liability between Funds formed in Ireland under the Irish Collective Asset-management Vehicles Act 2015 and authorised by the Central Bank as a UCITS pursuant to the UCITS Regulations.

The Manager of MontLake UCITS Platform ICAV is MLC Management Ltd, a company regulated by the Central Bank of Ireland. 

This website is directed mainly for professional and institutional clients who possess the necessary experience, knowledge and expertise to make their own investment decisions and properly assess the risk that it incurs.

Information on this website was obtained from various sources and the company does not guarantee its accuracy. The information is for your private use and discussion purposes only and expressed views and opinions may change.

The Performance figures quoted refer to the past and past performance is not a guarantee of future performance or a reliable guide to future performance. The value of your investment and their income may go down as well as up.

Your investment may also be subject to currency, interest rate, as well as market fluctuations. Consequently the Investor may not get back a sum equal to that he / she originally invested.

Investors should note that an investment in those Sub-Funds which may invest in emerging markets should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors.

The Sub-Funds may invest in Over the Counter as well as Exchange Traded derivative instruments to enhance return or hedge against fluctuations in security prices or market rates as well as to short sell a security through the use of a derivative instrument. Transactions in derivative instruments involve a risk of loss or depreciation of capital due to adverse changes in security prices, exchange rates or interest rates or in the case of OTC instruments default of Counterparty. This investment may not be suitable for all types of investors. It is therefore recommended that you consult your investment advisor.

A commission or sales fee may be charged at the time of the initial purchase for an investment and may be deducted from the invested amount therefore lowering the size of your investment. The Investment Manager will be entitled to receive a performance fee as well as a management fee, calculated on a daily basis and paid quarterly by the sub-funds.

The Levels and bases of taxation are dependent on individual circumstances and subject to change and therefore it is highly recommended that you consult a professional tax advisor.