Highland Funds I NPORT-P Highland Opportunistic Credit Fund (Mar 2020 report)

INVESTMENT PORTFOLIO (unaudited)
As of March 31, 2020	Highland Opportunistic Credit Fund

Principal Amount ($)			Value ($)
	U.S. Senior Loans (a) — 28.9%
	COMMUNICATION SERVICES —5.5%
	1,026,288	TerreStar Corporation, Term Loan A, 11.000% PIK 02/25/22 (b)(c)		1,019,104
	24,066	TerreStar Corporation, Term Loan C, 11.000% PIK 02/25/30 (b)(c)		23,898
			1,043,002
	INFORMATION TECHNOLOGY —2.5%
	554,482	Procera Networks, Inc., Initial Term Loan, LIBOR USD 3 Month+4.500%, 10/30/25		474,082
	SERVICE —7.7%
	2,000,000	Advantage Sales & Marketing Inc., Term Loan, 2nd Lien, LIBOR USD 3 Month+6.500%, 07/25/22		1,457,500
	TRANSPORTATION —5.3%
	611,030	Gruden Acquisition, Inc., Incremental Term Loan, 1st Lien, LIBOR USD 3 Month+5.500%, 08/18/22		580,479
	401,845	Kenan Advantage,Cov-Lite, Initial Term Loan, 1st Lien, 07/29/22		334,661
	95,560	Kenan Advantage, Initial Term Loan B, 07/29/22		79,583
				994,723
	UTILITIES —7.9%
	1,623,513	Granite Acquisition, Inc., Term Loan B, 2nd Lien, LIBOR USD 3 Month+7.250%, 12/19/22		1,477,396
	15,190,310	Texas Competitive Electric Holdings Co., LLC, Extended Escrow Loan (d)		9,874
				1,487,270
		Total U.S. Senior Loans (Cost $6,721,088)		5,456,577
	Common Stocks — 20.3%
Shares
	COMMUNICATION SERVICES —10.6%
	6,369	Metro-Goldwyn-Mayer, Inc. (e)(f)		436,276
	5,082	TerreStar Corporation (b)(c)(e)(f)		1,572,574
				2,008,850
	CONSUMER DISCRETIONARY —6.9%
	374	Toys ‘R’ Us (f)		65,390
	374	Tru Kids, Inc. (f)		1,242,413
				1,307,803
	MATERIALS —2.8%
	105,492	MPM Holdings, Inc. (f)		527,460

Shares			Value ($)
	Common Stocks (continued)
	MATERIALS (continued)
	6,632	Omnimax International, Inc. (b)(c)(f)		199
				527,659
		Total Common Stocks (Cost $7,286,986)		3,844,312
	Corporate Bonds & Notes — 11.9%
Principal Amount $
	ENERGY —1.1%
	2,437,000	Ocean Rig UDW, Inc. 7.25%, 04/01/19 (b)(c)(g)(h)		168,153
	4,000,000	Rex Energy Corp. 8.00%, 10/03/19 (g)		50,000
	464	Sable Permian Resources Land 7.38%, 11/01/21 (h)		67
				218,220
	UTILITIES —10.8%
	2,720,982	Bruce Mansfield Pass-Through Trust 6.85%, 06/01/34 (g)		—
	2,000,000	Pacific Gas & Electric 6.05%, 03/01/34 (g)		2,038,900
				2,038,900
		Total Corporate Bonds & Notes (Cost $3,611,986)		2,257,120
	Preferred Stock — 9.1%
Shares
	FINANCIALS —9.1%
	75,520	Federal Home Loan Mortgage 8.38% (f)(i)		459,917
	76,690	Federal National Mortgage Association 8.25% (f)(i)		485,448
	1,500	Grayson CLO, Ltd., 11/01/2021 (j)		472,500
	1,000	Westchester CLO, Ltd., 08/01/2022 (j)		303,333
		Total Preferred Stock (Cost $3,443,328)		1,721,198
	Rights — 1.5%
Units
	Utilities —1.5%
	253,272	Texas Competitive Electric Holdings Co., LLC (f)		289,237
		Total Rights (Cost $837,554)		289,237

INVESTMENT PORTFOLIO (unaudited) (concluded)
As of March 31, 2020	Highland Opportunistic Credit Fund

Principal Amount ($)			Value ($)
	Collateralized Loan Obligation — 1.2%
	500,000	Vibrant CLO V,Series 2016-5A, Class E ICE LIBOR USD 3 Month+7.000%, 8.82%, 1/20/2029 (h)(k)		225,000
		Total Collateralized Loan Obligation (Cost $500,295)		225,000
	Foreign Corporate Bond & Notes — 0.0%
	NETHERLANDS —0.0%
	317,982	Celtic Pharma Phinco BV, 17.00% (b)(c)(g)		—
		Total Foreign Corporate Bond & Notes (Cost $212,561)		—
	Cash Equivalent — 16.8%
Shares
	MONEY MARKET FUND (l) —16.8%
	3,176,511	Dreyfus Treasury & Agency Cash Management, Institutional Class 0.220%		3,176,511
		Total Cash Equivalent (Cost $3,176,511)		3,176,511
	Total Investments - 89.7% (Cost $25,790,309)			16,969,955
	Other Assets & Liabilities, Net - 10.3%			1,950,839
	Net Assets - 100.0%			18,920,794

(a) Senior loans (also called bank loans, leveraged loans, or floating rate loans) in which the Fund invests generally pay interest at rates which are periodically determined by reference to a base lending rate plus a spread (unless otherwise identified, all senior loans carry a variable rate of interest). These base lending rates are generally (i) the Prime Rate offered by one or more major United States banks, (ii) the lending rate offered by one or more European banks such as the London Interbank Offered Rate (“LIBOR”) or (iii) the Certificate of Deposit rate. As of March 31, 2020, the LIBOR USD 3 Month rate was 1.45%. Senior loans, while exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”), contain certain restrictions on resale and cannot be sold publicly. Senior secured floating rate loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity maybe substantially less than the stated maturity shown.

(b) Securities with a total aggregate value of $2,783,928, or 14.7% of net assets, were classified as Level 3 within the three-tier fair value hierarchy. Please see Notes to Investment Portfolio for an explanation of this hierarchy, as well as a list of unobservable inputs used in the valuation of these instruments.

(c) Represents fair value as determined by the Fund’s Board of Trustees (the “Board”), or its designee in good faith, pursuant to the policies and procedures approved by the Board. The Board considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $2,783,928, or 14.7% of net assets, were fair valued under the Fund’s valuation procedures as of March 31, 2020. Please see Notes to Investment Portfolio.

(d) Represents value held in escrow pending future events. No interest is being accrued.

(e) Restricted Securities. These securities are not registered and may not be sold to the public. There are legal and/or contractual restrictions on resale. The Fund does not have the right to demand that such securities be registered. The values of these securities are determined by valuations provided by pricing services, brokers, dealers, market makers, or in good faith under the procedures established by the Fund’s Board of Trustees. Additional Information regarding such securities follows:

Restricted Security	Security Type		Acquisition Date		Cost of Security		Market Value at Period End		Percent of Net Assets
Metro-Goldwyn-Mayer, Inc.		Common Stock		12/20/2010	$	238,560	$	436,276		2.3	%
TerreStar Corporation		Common Stock		12/12/2014	$	1,456,829	$	1,572,574		8.3	%

(f) Non-income producing security.

(g) The issuer is, or is in danger of being, in default of its payment obligation.

(h) Securities exempt from registration under Rule 144A of the 1933 Act. These securities may only be resold in transaction exempt from registration to qualified institutional buyers. At March 31, 2020, these securities amounted to $393,220 or 2.1% of net assets.

(i) Perpetual security with no stated maturity date.

(j) There is currently no rate available.

(k) Variable or floating rate security. The base lending rates are generally the lending rate offered by one or more European banks such as the LIBOR. The interest rate shown reflects the rate in effect March 31, 2020. LIBOR, otherwise known as London Interbank Offered Rate, is the benchmark interest rate that banks charge each other for short-term loans. Current LIBOR rates include 3 months equal to 1.45%.

(l) Rate shown is 7 day effective yield.