SCHEDULE: Morgan Stanley Discloses 6.3% Stake in Highland Fund

Morgan Stanley and its subsidiary, Morgan Stanley Smith Barney LLC, have disclosed a 6.3% beneficial ownership stake in Highland Opportunities & Income Fund.

Summary

• Morgan Stanley and its wholly-owned subsidiary, Morgan Stanley Smith Barney LLC, filed an Amendment No. 1 to Schedule 13G.
• The filing reports beneficial ownership in Highland Opportunities & Income Fund's Common Shares of Beneficial Interest (CUSIP: 43010E404).
• Morgan Stanley beneficially owns an aggregate of 3,480,324 shares, representing 6.3% of the class.
• Morgan Stanley Smith Barney LLC beneficially owns an aggregate of 3,354,847 shares, representing 6.1% of the class.
• The shares are certified as acquired and held in the ordinary course of business, not for the purpose of changing or influencing control of the issuer.
• The date of the event which required the filing of this statement is June 30, 2025.

Sentiment

Score: 5

Explanation: The filing is a standard beneficial ownership disclosure, providing factual information without indicating positive or negative operational or financial performance of the issuer.

Positives

• Major financial institutions, Morgan Stanley and its subsidiary, hold a significant stake (6.3%) in Highland Opportunities & Income Fund, indicating institutional interest and potential confidence in the fund.

Risks

• The filing is a beneficial ownership disclosure and does not detail specific operational, financial, or market risks related to Highland Opportunities & Income Fund.

Future Outlook

The filing is a beneficial ownership disclosure and does not provide any forward-looking statements or guidance regarding the issuer's future performance or outlook.

Management Comments

• The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities.

Industry Context

This filing represents a routine disclosure of significant institutional ownership by a major financial services firm in a publicly traded fund, common in the investment management industry. Such disclosures provide transparency on large shareholder positions.

Comparison to Industry Standards

• The filing is a standard beneficial ownership disclosure and does not contain performance metrics or operational results that would allow for a direct comparison to industry benchmarks, comparable companies, or projects.

Related Party Transactions

• Morgan Stanley Smith Barney LLC is identified as a wholly-owned subsidiary of Morgan Stanley, which is the basis for Morgan Stanley reporting as a parent holding company.

Stakeholder Impact

• Shareholders: Provides transparency regarding significant institutional ownership in the fund, which can be a signal of institutional interest.

Key Dates

Keywords

Beneficial Ownership, Institutional Investment, SEC Filing, Schedule 13G, Highland Opportunities & Income Fund, Morgan Stanley, Investment Fund, Common Shares