Highland Funds Receives Board Approval to Become Investment Adviser for Incline Capital Trend Following Fund

DALLAS, June 2, 2011 /PRNewswire/ -- Highland Funds Asset Management, L.P. ("Highland Funds") today announced that they have received approval from the Board of Trustees (the "Board") of the Incline Capital Trend Following Fund (ticker: ICTAX) (the "Incline Fund") to become the fund's investment advisor. The Board also approved Incline Capital, Incline Fund's previous investment advisor, to become the fund's sub-advisor.

Highland Funds will become the interim investment advisor effective immediately, with the transfer finalized permanently pending shareholder approval.

The Incline Fund manages a proprietary strategy designed to profit from trends in both directions across stock, bonds, and commodities and to produce lower overall volatility and superior returns to buy and hold strategies on a risk adjusted basis over the course of a market cycle. It is in the Morningstar managed futures category.

"Adding Incline's strategies to our platform greatly enhances our goal of offering diverse and alternative mutual funds to all investors," said Joe Dougherty, President and CEO of Highland Funds. "Highlighting the tremendous diversification benefits of a fund in the managed futures category for investors, Incline has consistently demonstrated low correlation to equity markets with a proven investment process."

"We are excited to be a part of the Highland Funds family and expand the reach of our offering through their leading platform and client servicing capabilities," added Mike Hurley, Incline Capital Founder and Portfolio Manager of the Incline Fund.

Terms of the proposed transaction are not being disclosed.

About Highland Funds and Highland Capital Management, L.P.

Based in Dallas, Texas, Highland Funds is known as one of the premier providers of diverse and alternative fund strategies distributed through financial intermediaries. The Highland Funds complex consists of a number of distinct registered investment companies falling into three types: open-end "mutual" funds, closed-end "interval" funds, and traditional closed-end funds, with a total of over $3.3 billion in retail assets under management.  Highland Funds is an affiliate of Highland Capital Management, L.P., a global alternative investment manager with approximately $23 billion of assets under management.

Investors should consider the investment objectives, risks, charges and expenses of the Highland Funds carefully before investing.  Please call 1-877-665-1287 or visit www.highlandfunds.com for more information on the Funds.  Please read the prospectus carefully before you invest.

Securities may be offered through NexBank Securities, Inc., an affiliate of Highland Capital Management, L.P. NexBank Securities, Inc. is a FINRA member firm.

This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include the anticipated time of closing and anticipated earn-out amounts.  The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. Past performance is no guarantee of future results.

This is an actively managed dynamic portfolio.  There is no guarantee this investment will achieve its objectives or goals, or generate positive returns or avoid losses. Mutual fund investing involves risk. Principal loss is possible. The Incline Capital Trend Following Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. It may make short sales of securities which involves the risk that losses may exceed the original amount invested and may invest in foreign securities in developing or emerging markets which can entail additional social, political and economic risks. It also may invest in smaller companies and debt instruments (including zero-coupon US Treasury bonds) which may be subject to higher volatility & risk than larger stocks and coupon bonds. The Incline Capital Trend Following Fund is considered a "fund of funds", and will bear its share of the fees and expenses of the underlying funds. Shareholders will pay higher expenses than would be the case if making direct investments in the underlying ETFs. Because the Fund invests in ETFs, it is subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF's shares may trade at a discount to its net asset value ("NAV"), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a Fund's ability to sell its shares. The maximum sales charge for A- shares is 5.75%. A-share investors may be eligible for a reduction in sales charges.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Incline Capital Trend Following Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 866-994-5729. The prospectus should be read carefully before investing. The Incline Capital Trend Following Fund is distributed by Northern Lights Distributors, LLC member FINRA (6/11)

Correlation is a statistical measure of how two variables move in relation to each other.

SOURCE Highland Funds Asset Management, L.P.

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