Highland Premium Dividend Fund to offer common shares at $20 each

By Toni Weeks

San Diego, Nov. 8 - Highland Premium Dividend Fund has registered 50,000 common shares, according to an N-2 filing with the Securities and Exchange Commission.

The shares will be sold at $20.00 apiece for proceeds of $1 million.

The fund's adviser is Dallas-based Highland Funds Asset Management, LP. The fund's sub-adviser is Brookmont Capital management LLC.

The fund's investment objective is to provide a high level of current income with the potential for long-term capital appreciation.

The fund will invest up to 80% of its net assets in a portfolio of common stocks and other equity securities, including stocks, preferred stocks, convertible securities, depositary receipts and warrants. It will invest up to 20% of its total assets in a variety of other securities and financial instruments, including asset-backed and mortgage-backed securities, securities issued through initial public offerings, bonds, money market instruments, illiquid securities and cash and cash equivalents.

Under normal market conditions, the fund's investment strategy will consist primarily of (1) investments in a portfolio of common stocks and other equity securities and (2) writing and purchasing call and put options on a month-to-month basis on equity indexes and, to a lesser extent, the fund's portfolio securities.

The sales load will be 4.5% of the offering price. The minimum investment is at least 100 common shares, or $2,000.

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