INVESTMENT PORTFOLIO (unaudited)

As of December 31, 2019 Highland Global Allocation Fund

Shares			Value ($)
	Non-U.S. Equity (c) — 45.7%
	Communication Services — 1.6%
	77,866	Grupo Clarin, Class B (b)		43,047
	129,945	Loral Space & Communications, Inc. (a)(b)		4,199,822
				4,242,869
	Consumer Discretionary — 4.2%
	13,500	MercadoLibre, Inc. (a)(b)		7,721,190
	718	Toys ‘R’ Us (b)		179,450
	718	Tru Kids, Inc. (b)		3,409,550
				11,310,190
	Energy — 7.0%
	5,000	Continental Resources, Inc. (a)		171,500
	29,751	NextDecade Corp. (a)(b)		182,671
	53,200	Plains GP Holdings, Class A (a)		1,008,140
	113,000	Targa Resources (a)		4,613,790
	121	Transocean (a)(b)		833
	537,700	Williams Cos., Inc. (a)		12,754,244
				18,731,178
	Financial — 2.2%
	100,000	FGL Holdings (a)		1,065,000
	188,858	Grupo Supervielle SA ADR (a)		694,998
	280,500	IRB Brasil Resseguros S (a)		2,715,956
	175,900	Itau Unibanco Holding ADR (a)		1,609,485
				6,085,439
	Industrials — 1.3%
	38,549	American Airlines Group, Inc. (a)		1,105,585
	87,855	GL Events (a)		2,371,741
				3,477,326
	Information Technology — 3.8%
	196,988	Avaya Holdings Corp. (a)(b)		2,659,338
	3,406	Black Knight, Inc. (a)(b)		219,619
	181,950	StoneCo, Class A (a)(b)		7,257,985
				10,136,942
	Utilities — 25.6%
	202,250	Central Puerto ADR (a)		982,935
	1,150	NRG Energy, Inc. (a)		45,712
	109,400	Pampa Energia ADR (a)(b)		1,797,442
	2,836,900	Vistra Energy Corp. (a)		65,220,331
	45,830	Voltalia (a)(b)		671,345
				68,717,765
		Total Non-U.S. Equity (Cost $158,612,590)		122,701,709
	U.S. Equity — 28.5%
	Communication Services — 17.6%
	48,209	Clear Channel Outdoor Holdings, Inc., Class A (a)(b)		137,878
	169,531	TerreStar Corporation (b)(d)(e)(f)(g)		46,988,907
				47,126,785
	Consumer Discretionary — 1.1%
	141,215	K12, Inc. (a)(b)		2,873,725
	698	Lennar Corp., Class B (a)		31,201
				2,904,926

Shares			Value ($)
	U.S. Equity (continued)
	Healthcare — 4.1%
	15,200	Aerie Pharmaceuticals, Inc. (a)(b)		367,384
	232,800	Heron Therapeutics, Inc. (a)(b)		5,470,800
	89,400	Patterson (a)		1,830,912
	57,200	Portola Pharmaceuticals, Inc. (a)(b)		1,365,936
	56,009	Quorum Health Corp. (a)(b)		53,550
	120,900	Surgery Partners, Inc. (a)(b)		1,892,690
	2,800	Ultragenyx Pharmaceutical, Inc. (a)(b)		119,588
				11,100,860
	Materials — 1.4%
	730,484	MPM Holdings, Inc. (b)		3,652,420
	Real Estate — 4.3%
	61,625	Brookdale Senior Living, Inc. (a)(b)		448,014
	70,700	City Office, REIT (a)		955,864
	300,100	GAF REIT (b)(d)(e)(f)		3,001,022
	114,300	Independence Realty Trust, Inc., REIT (a)		1,609,344
	101,918	Jernigan Capital, Inc., REIT (a)		1,950,710
	62,710	NexPoint Residential Trust, REIT (a)(f)		2,821,950
	44,387	RAIT Financial Trust, REIT (a)(b)		1,554
	280,000	United Development Funding IV, REIT (a)		817,600
				11,606,058
		Total U.S. Equity (Cost $90,856,068)		76,391,049
	Non-U.S. Master Limited Partnerships (c) — 18.1%
	Energy — 18.1%
	1,588,500	Energy Transfer LP (a)		20,380,455
	5,334,017	Highland Energy MLP Fund, Class Y (f)		13,495,063
	367,600	MPLX LP (a)		9,359,096
	10,400	Shell Midstream Partners LP (a)		210,184
	255,500	Western Midstream Partners LP (a)		5,030,795
		Total Non-U.S. Master Limited Partnerships (Cost $95,400,299)		48,475,593
Principal Amount $
	U.S. Senior Loans (h) — 12.1%
	Communication Services — 5.5%
	14,734,734	TerreStar Corporation, Term Loan A, 11.000% PIK 02/27/20 (d)(e)(f)		14,705,264
	Energy — 5.1%
	23,743,431	Fieldwood Energy LLC, Closing Date Loan, 2nd Lien, VAR LIBOR USD 3 Month+7.250%, 04/11/23		13,667,313
	Retail — 0.6%
	1,947,729	Academy, Ltd., Initial Term Loan, VAR LIBOR USD 3 Month+4.000%, 07/01/22		1,611,551

INVESTMENT PORTFOLIO (unaudited)(continued)

As of December 31, 2019 Highland Global Allocation Fund

Principal Amount ($)			Value ($)
	U.S. Senior Loans (continued)
	Service — 0.8%
	2,500,000	Advantage Sales & Marketing Inc., Term Loan, 2nd Lien, VAR LIBOR USD 3 Month+6.500%, 07/25/22		2,235,425
	Utilities — 0.1%
	471,039,553	Texas Competitive Electric Holdings Co., LLC, Extended Escrow Loan (i)		259,072
		Total U.S. Senior Loans (Cost $53,759,081)		32,478,625
	Non-U.S. Government Bond — 11.4%
	Sovereign — 11.4%
	62,500,000	Argentine Republic Government International Bond 3.75%, 5.25%, 03/31/29, 12/31/38 (a)(c)(j)		30,684,063
		Total Non-U.S. Government Bond (Cost $30,343,904)		30,684,063
Shares
	Non-U.S. Registered Investment Companies (c)(f) — 8.1%
	10,000	BB Votorantim Highland Infrastructure LLC (d)(e)		3,485,382
	544,599	Highland Merger Arbitrage Fund, Class Z		10,603,342
	436,131	NexPoint Strategic Opportunities Fund (a)		7,723,880
		Total U.S. Registered Investment Companies (Cost $24,669,806)		21,812,604
	U.S. LLC Interest — 5.5%
	Real Estate — 5.5%
	6,773,494	SFR WLIF I, LLC (d)(e)(f)		6,674,059
	4,437,497	SFR WLIF II, LLC (d)(e)(f)		4,395,696
	3,789,008	SFR WLIF III, LLC (d)(e)(f)		3,706,863
		Total U.S. LLC Interest (Cost $15,000,000)		14,776,618
Principal Amount $
	Non-U.S. Asset-Backed Securities (c) — 4.4%
	4,000,000	Acis CLO, Ltd., Series 2014-3A, Class E VAR ICE LIBOR USD 3 Month+4.750%, 6.66%, 2/1/2026 (k)(l)		3,444,400

Principal Amount ($)			Value ($)
	Non-U.S. Asset-Backed Securities (continued)
	4,000,000	Acis CLO, Ltd., Series 2014-4A, Class F VAR ICE LIBOR USD 3 Month+5.150%, 7.06%, 5/1/2026 (k)(l)		3,122,200
	3,500,000	Acis CLO, Ltd., Series 2014-5A, Class E1 VAR ICE LIBOR USD 3 Month+6.520%, 8.43%, 11/1/2026 (k)(l)		2,695,000
	2,500,000	Acis CLO, Ltd., Series 2014-4A, Class E VAR ICE LIBOR USD 3 Month+4.800%, 6.71%, 5/1/2026 (k)(l)		2,137,500
	180,119	Highland Park CDO I, Ltd., Series 2006-1A, Class A2 VAR LIBOR USD 3 Month+0.400%, 3.05%, 11/25/2051 (l)		180,085
	311,866	Pamco Cayman, Ltd., Series 1997-1A, Class B 7.91%, 8/6/2013 (d)(e)		116,357
		Total Non-U.S. Asset-Backed Securities (Cost $12,977,790)		11,695,542
Shares
	U.S. Preferred Stock — 3.9%
	Financial — 1.3%
	127,751	Federal Home Loan Mortgage (a)(b)(m)		2,296,583
	58,233	Federal National Mortgage Association (a)(b)(m)		1,140,987
				3,437,570
	Real Estate — 2.6%
	370,968	Braemar Hotels & Resorts, Inc., REIT (a)(b)(m)		7,048,392
		Total U.S. Preferred Stock (Cost $9,275,244)		10,485,962
Principal Amount ($)
	U.S. Agency Collateralized Mortgage Obligation — 3.7%
	10,006,124	FREMF Mortgage Trust, Series 2019-KF60, Class C VAR LIBOR USD 1 Month+6.000%, 7.70%, 2/25/2026 (k)		9,986,111
		Total U.S. Agency Collateralized Mortgage Obligation (Cost $9,991,279)		9,986,111

INVESTMENT PORTFOLIO (unaudited)(continued)

As of December 31, 2019 Highland Global Allocation Fund

Units			Value $
	U.S. Rights — 3.1%
	Utilities — 3.1%
	7,905,143	Texas Competitive Electric Holdings Co., LLC		8,316,210
		Total U.S. Rights (Cost $22,029,102)		8,316,210
Principal Amount $
	Non-U.S. Corporate Bonds & Notes (c) — 1.3%
	Communication Services — 0.4%
	315,654	iHeartCommunications, Inc. 6.38%, 05/01/26		343,076
	584,493	8.38%, 05/01/27		646,946
				990,022
	Energy — 0.9%
	37,083,000	Ocean Rig UDW, Inc. 7.25%, 04/01/19 (d)(e)(n)		2,558,727
	290	Sable Permian Resources Land 7.38%, 11/01/21		63
				2,558,790
		Total Non-U.S. Corporate Bonds & Notes (Cost $32,028,540)		3,548,812
Shares
	U.S. Exchange-Traded Fund — 0.6%
	18,900	VelocityShares 3x Long Silver ETN linked to the S&P GSCI Silver Index (a)		1,735,020
		Total U.S. Exchange-Traded Fund (Cost $1,781,518)		1,735,020
Principal Amount $
	U.S. Corporate Bonds & Notes — 0.4%
	Real Estate — 0.1%
	400,000	CBL & Associates 5.95%, 12/15/26 (a)		240,929

Principal Amount ($)			Value ($)
	U.S. Corporate Bonds & Notes (continued)
	Utilities — 0.3%
	151,234,000	Texas Competitive Electric Holdings Co., LLC (n)		725,923
	9,346,000	Texas Competitive Electric Holdings Co., LLC (n)		44,861
	3,000,000	Texas Competitive Electric Holdings Co., LLC (n)		9,750
				780,534
		Total U.S. Corporate Bonds & Notes (Cost $2,032,504)		1,021,463
	Non-U.S. Senior Loan (h) — 0.3%
	Communication Services — 0.3%
	910,672	iHeartCommunications Inc., Initial Term Loan, 1st Lien 05/01/26 (a)(c)(n)		919,588
		Total Non-U.S. Senior Loan (Cost $3,299,425)		919,588
Units
	U.S. Warrants — 0.2%
	Healthcare — 0.2%
	42,032	HLS Therapeutics, Inc., Expires 12/31/2049(b)(d)(e)		461,511
		Total U.S. Warrants (Cost $—)		461,511
	Non-U.S. Warrants (c) — 0.1%
	Communication Services — 0.0%
	1,109	iHeartCommunications, Inc., Expires 05/01/2039		17,017
	Industrials — 0.1%
	1,260,362	American Airlines, (b)		292,026
	Information Technology — 0.0%
	38,742	Avaya Holdings, Expires 12/15/2022(b)		48,427
		Total Non-U.S. Warrants (Cost $77,464)		357,470
		Total Investments - 147.4%		395,847,950
		(Cost $562,134,614)

INVESTMENT PORTFOLIO (unaudited)(continued)

As of December 31, 2019 Highland Global Allocation Fund

Shares			Value ($)
	Securities Sold Short (o) — (29.9)%
	U.S. Exchange-Traded Fund — (0.7)%
	(25,500)	Direxion Daily Small Capital Bull 3X Shares (p)		(1,835,745	)
		Total U.S. Exchange-Traded Fund (Proceeds $1,510,274)		(1,835,745	)
	Non-U.S. Equity (c) — (7.4)%
	Communication Services — (1.5)%
	(80,000)	Nintendo Co, Ltd. ADR		(3,992,000	)
	Energy — (1.5)%
	(66,250)	Cheniere Energy, Inc.		(4,045,887	)
	Healthcare — (4.4)%
	(80,000)	Zimmer Holdings, Inc.		(11,974,400	)
		Total Non-U.S. Equity (Proceeds $12,275,210)		(20,012,287	)
	U.S. Equity — (21.8)%
	Communication Services — (8.4)%
	(69,650)	Netflix, Inc.		(22,536,651	)
	Consumer Discretionary — (0.6)%
	(43,600)	Harley-Davidson		(1,621,484	)
	Healthcare — (12.8)%
	(490,150)	Boston Scientific Corp.		(22,164,583	)
	(58,000)	Stryker Corp.		(12,176,520	)
				(34,341,103	)
		Total U.S. Equity (Proceeds $21,755,594)		(58,499,238	)
		Total Securities Sold Short- (29.9)% (Proceeds $35,541,078)		(80,347,270	)
	Other Assets & Liabilities, Net - (17.5)%			(47,016,539	)
	Net Assets - 100.0%			268,484,141

(a) All or part of this security is pledged as collateral for short sales. The market value of the securities pledged as collateral was $228,724,384.

(b) Non-income producing security.

(c) As described in the Fund’s prospectus, a company is considered to be a non-U.S. issuer if the company’s securities principally trade on a market outside of the United States, the company derives a majority of its revenues or profits outside of the United States, the company is not organized in the United States, or the company is significantly exposed to the economic fortunes and risks of regions outside the United States.

(d) Securities with a total aggregate value of $86,093,788, or 32.1% 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.

(e) 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 $86,093,788, or 32.1% of net assets, were fair valued under the Fund’s valuation procedures as of December 31, 2019. Please see Notes to Investment Portfolio.

(f) Affiliated issuer. Assets with a total aggregate market value of $117,601,428, or 43.8% of net assets, were affiliated with the Fund as of December 31, 2019.

(g) 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
TerreStar Corporation		U.S. Equity		11/14/2014	$	48,015,562	$	46,988,907		17.5	%

(h) 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 December 31, 2019, the LIBOR USD 3 Month rate was 1.91%. 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.

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

(j) Step Bond - Represents the current rate, the step rate, the step date and the final maturity date.

(k) As of December 30, 2019, investments with a total aggregate value of $13,300,000 were fully or partially segregated with broker(s)/ custodian as collateral for reverse repurchase agreements.

INVESTMENT PORTFOLIO (unaudited)(concluded)

As of December 31, 2019 Highland Global Allocation Fund

(l) 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 December 31, 2019. 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 1.91%.

(m) Perpetual security with no stated maturity date.

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

(o) As of December 31, 2019, $63,330,117 in cash was segregated or on deposit with the brokers to cover investments sold short and is included in “Other Assets & Liabilities, Net”.

(p) No dividend payable on security sold short.

Futures contracts outstanding as of December 31, 2019 were as follows:

Description	Expiration Date		Number of Contracts			Notional Value			Unrealized Depreciation			Value
Short Futures:
S&P 500 Index E-MINI		March 2020		(420	)	$	(66,064,700	)	$	(1,788,400	)	$	(1,788,400	)

The average amount of borrowing by the Fund on reverse repurchase agreements outstanding during the period ended December 31, 2019 was $3,534,125 at a weighted average interest rate of 3.22%.

Counterparty	Collateral Pledged	Interest Rate	Trade Date	Maturity Date	Repurchase Amount $		Principal Amount $		Value $
BNP	Acis CLO, Ltd., Series 2014-3A, Class E, VAR LIBOR USD 3  Month+4.750%, 6.66%, 2/1/2026	3.14	10/17/2019	1/17/2020		1,814,444		4,000,000		1,800,000
BNP	Acis CLO, Ltd., Series 2014-4A, Class E, VAR LIBOR USD 3  Month+4.800%, 6.71%, 5/1/2026	3.14	10/17/2019	1/17/2020		1,134,028		2,500,000		1,125,000
BNP	Acis CLO, Ltd., Series 2014-4A, Class F, VAR LIBOR USD 3  Month+5.150%, 7.06%, 5/1/2026	3.24	10/17/2019	1/17/2020		1,209,936		4,000,000		1,200,000
BNP	Acis CLO, Ltd., Series 2014-5A, Class E1, VAR LIBOR USD 3  Month+6.520%, 8.43%, 11/1/2026	3.14	10/17/2019	1/17/2020		1,693,481		3,500,000		1,680,000
BNP	FREMF Mortgage Trust., Series 2019-KF60, Class C, VAR LIBOR USD 1  Month+6.000%, 7.70%, 2/25/2026	3.30	10/10/2019	1/10/2020		7,558,208		9,989,994		7,495,000
Total Reverse Repurchase Agreements								23,989,994		13,300,000