July 25, 2018
VIA EDGAR
U.S. Securities and Exchange Commission
Division of Investment Management
100 F Street, N.E.
Washington, DC 20549
RE: | NexPoint Strategic Opportunities Fund | File No. 811-21869 | ||
NexPoint Capital, Inc. | File No. 814-01074 | |||
Highland Funds I | File No. 811-21866 | |||
Highland Funds II | File No. 811-07142 | |||
NexPoint Real Estate Strategies Fund | File No. 811-23129 | |||
Highland Floating Rate Opportunities Fund | File No. 811-23268 | |||
Highland Global Allocation Fund II | File No. 811-23269 | |||
NexPoint Healthcare Opportunities Fund | File No. 811-23144 | |||
NexPoint Latin American Opportunities Fund | File No. 811-23153 |
Ladies and Gentlemen:
On behalf of NexPoint Strategic Opportunities Fund, NexPoint Capital, Inc., Highland Funds I, Highland Funds II, NexPoint Real Estate Strategies Fund, Highland Floating Rate Opportunities Fund, Highland Global Allocation Fund II, NexPoint Healthcare Opportunities Fund, and Nexpoint Latin American Opportunities Fund (collectively, the Funds), enclosed for filing, pursuant to Rule 17g-1 of the Investment Company Act of 1940, as amended (the 1940 Act), is Rider No. 14 (the Rider) to the Funds fidelity bond, issued by ICI Mutual Insurance Company, originally filed with the U.S. Securities and Exchange Commission (the SEC) on October 24, 2017 (Accession Number 0001193125-17-317531) (the Fidelity Bond). The purpose of the Rider is to increase the Funds limit of liability under the Fidelity Bond.
The resolutions unanimously adopted by the Boards of Trustees and the Board of Directors (as the case may be) (the Board) of the Funds, including those Board members who are not interested persons of the Funds, as defined by Section 2(a)(19) of the 1940 Act, on September 14, 2017 approving the amount, type, form and coverage of the Bond and the Joint Insured Bond Agreement, were filed with the SEC when the Fidelity Bond was filed.
The premium associated with the Rider has been paid.
If the Funds had not been named as co-insureds under the Fidelity Bond, the Funds would have maintained a single insured fidelity bond in the amount of $1,000,000 for NexPoint Strategic Opportunities Fund, $525,000 for NexPoint Capital, Inc., $1,250,000 for Highland Funds I, $1,250,000 for Highland Funds II, $200,000 for NexPoint Real Estate Strategies Fund, $1,500,000 for Highland Floating Rate Opportunities Fund, $0 for Highland Global Allocation Fund II, $150,000 for NexPoint Healthcare Opportunities Fund, and $0 for NexPoint Latin American Opportunities Fund, as required under paragraph (d) of Rule 17g-1.
Please contact me at (617) 662-3968 if you have any questions.
Sincerely, |
/s/ Rebecca Gilding |
Rebecca Gilding |
Enclosure
ICI MUTUAL INSURANCE COMPANY,
a Risk Retention Group
INVESTMENT COMPANY BLANKET BOND
RIDER NO. 14
INSURED | BOND NUMBER | |||
Highland Funds I | 04704117B | |||
EFFECTIVE DATE | BOND PERIOD | AUTHORIZED REPRESENTATIVE | ||
June 30, 2018 | September 15, 2017 to September 15, 2018 | /S/ Maggie Sullivan |
In consideration of the premium charged for this Bond, it is hereby understood and agreed that the Limit of Liability for the following Insuring Agreements is hereby amended, effective June 30, 2018, to be:
Limit of Liability |
||||||
Insuring Agreement A- |
FIDELITY |
$ | 5,875,000 | |||
Insuring Agreement C- |
ON PREMISES |
$ | 5,875,000 | |||
Insuring Agreement D- |
IN TRANSIT |
$ | 5,875,000 | |||
Insuring Agreement E- |
FORGERY OR ALTERATION |
$ | 5,875,000 | |||
Insuring Agreement F- |
SECURITIES |
$ | 5,875,000 | |||
Insuring Agreement G- |
COUNTERFEIT CURRENCY |
$ | 5,875,000 | |||
Insuring Agreement I- |
PHONE/ELECTRONIC TRANSACTIONS |
$ | 5,875,000 | |||
Insuring Agreement J- |
COMPUTER SECURITY |
$ | 5,875,000 |
Except as above stated, nothing herein shall be held to alter, waive or extend any of the terms of this Bond.
RN0004.0-02 (10/08) sp