Highland launches CLO-focused Highland Flexible Income UCITS Fund

By Sarah Lizee

Olympia, Wash., June 12 – Highland Capital Management, LP announced the launch of the Highland Flexible Income UCITS Fund, an Irish-domiciled fund focused on collateralized loan obligation debt.

Highland developed the product to meet the growing demand for floating-rate strategies among European investors, according to a press release.

“Such strategies are relatively uncommon within the broader UCITS fixed-income universe, forcing investors into more duration-sensitive strategies for income generation,” the release said.

“The fund, which aims to generate high current income with the potential for incremental return through capital appreciation, thus provides a valuable option for income-seeking investors at a time when interest-rate risk is a growing concern.”

The fund is overseen by Mark Okada, Highland co-founder and co-chief investment officer, along with Highland partner and co-chief investment officer Trey Parker and Neil Desai, managing director and structured products portfolio manager.

The fund invests in U.S. and European structured products through a combination of fundamental security analysis and dynamic allocation across ratings categories.

The portfolio primarily consists of high quality, resilient investment-grade CLO debt, focusing on minimizing credit risk–a key consideration at this point in the credit cycle, the company said.

The fund is hosted on the Montlake UCITS Platform, an independent platform for UCITS funds that provides investors with access to a range of liquid, transparent and regulated investment products domiciled in Dublin.

Highland is a Dallas-based investment management firm.

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