# EDGAR Filing Document

**Accession Number:** 0001710680
**File Stem:** 0001752724-23-057150
**Filing Date:** 2023-3
**Character Count:** 32136
**Document Hash:** 4599c68d1788f48f2155cf0cf15b1845
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001752724-23-057150.hdr.sgml**: 20230315

**ACCESSION NUMBER**: 0001752724-23-057150

**CONFORMED SUBMISSION TYPE**: N-CEN

**PUBLIC DOCUMENT COUNT**: 3

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230315

**DATE AS OF CHANGE**: 20230315

**EFFECTIVENESS DATE**: 20230315

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HIGHLAND INCOME FUND\MA
- **CENTRAL INDEX KEY:** 0001710680
- **IRS NUMBER:** 456245636
- **STATE OF INCORPORATION:** MA
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** N-CEN
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-23268
- **FILM NUMBER:** 23734687

**BUSINESS ADDRESS:**
- **STREET 1:** 300 CRESCENT COURT
- **STREET 2:** SUITE 700
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75201
- **BUSINESS PHONE:** 214-276-6300

**MAIL ADDRESS:**
- **STREET 1:** 300 CRESCENT COURT
- **STREET 2:** SUITE 700
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75201

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HIGHLAND FLOATING RATE OPPORTUNITIES FUND
- **DATE OF NAME CHANGE:** 20170925

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HIGHLAND FLOATING RATE OPPORTUNITIES FUND II
- **DATE OF NAME CHANGE:** 20170628

## Legal

```

Highland Income Fund
Item G.1.a.i. - Legal Proceedings

Two affiliated funds, including the Highland Income Fund (f/k/a Highland
Floating Rate Opportunities Fund), are the beneficiaries of an approximately
$122 million judgment against Credit Suisse related  to a syndicated real
estate transaction fraudulently underwritten by the Swiss bank.  The judgment
was appealed up to the Dallas Court of Appeals, then the Texas Supreme Court,
remanded to the trial court, and is back to the Dallas Court of Appeals.  The
Dallas Court of Appeals has issued  a ruling reducing the judgment to an amount
that, including offsets for prior settlement proceeds received by the funds,
may result in the two funds recovering zero net dollars on the outstanding
judgment. The two funds also are participants in a similar action against
Credit Suisse related to five additional real estate deals in which the funds
allege Credit Suisse committed fraud in relation to the underwriting.

```

## Internal

```

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Trustees of
Highland Income Fund

In planning and performing our audit of the financial statements of
Highland Income Fund (the "Fund") as of and for the year ended December
31, 2022, in accordance with the standards of the Public Company
Accounting Oversight Board (United States) (PCAOB), we considered the
Fund's internal control over financial reporting, including controls over
safeguarding securities, as a basis for designing our auditing procedures for
the purpose of expressing our opinion on the financial statements and to
comply with the requirements of Form N-CEN, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control
over financial reporting.  Accordingly, we express no such opinion.

The management of the Fund is responsible for establishing and
maintaining effective internal control over financial reporting. In fulfilling
this responsibility, estimates and judgments by management are required
to assess the expected benefits and related costs of controls.  A fund's
internal control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance
with generally accepted accounting principles (GAAP).  A fund's internal
control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets
of the fund; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in
accordance with GAAP, and that receipts and expenditures of the fund are
being made only in accordance with authorizations of management and
trustees of the fund; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use or
disposition of a fund's assets that could have a material effect on the
financial statements.

Because of its inherent limitations, internal control over financial reporting
may not prevent or detect misstatements.  Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.

A deficiency in internal control over financial reporting exists when the
design or operation of a control does not allow management or employees,
in the normal course of performing their assigned functions, to prevent or
detect misstatements on a timely basis.  A material weakness is a
deficiency, or combination of deficiencies, in internal control over financial
reporting, such that there is a reasonable possibility that a material
misstatement of the Fund's annual or interim financial statements will not
be prevented or detected on a timely basis.

Our consideration of the Fund's internal control over financial reporting
was for the limited purpose described in the first paragraph and would not
necessarily disclose all deficiencies in internal control that might be
material weaknesses under standards established by the PCAOB.  However,
we noted no deficiencies in the Fund's internal control over financial
reporting and its operation, including controls over safeguarding securities,
that we consider to be a material weakness as defined above as of
December 31, 2022.

This report is intended solely for the information and use of management
and the Board of Trustees of the Fund and the Securities and Exchange
Commission and is not intended to be and should not be used by anyone
other than these specified parties.

COHEN & COMPANY, LTD.
Cleveland, Ohio
March 3, 2023

```

# Form N-CEN: Annual Report for Registered Investment Companies

## N-CEN: Filer Information
**Submission Type:** N-CEN
**CIK:** 0001710680

## N-CEN: Series/Class (Contract) Information

### N-CEN: Part A: General Information

**Item A.1.a - Report for period ending:** 2022-12-31

**Item A.1.b - Does this report cover a period of less than 12 months?:** No

## N-CEN: Part B: Information About the Registrant

- **Item B.1.a - Full name of Registrant:** HIGHLAND INCOME FUND\MA

- **Item B.1.b - Investment Company Act file number:** 811-23268

- **Item B.1.c - CIK:** 0001710680

- **Item B.1.d - LEI:** 254900CMUE9FRYL2UR80

- **Item B.2.a - Street 1:** 300 Crescent Ct.

- **Item B.2.a - Street 2:** Suite 700

- **Item B.2.b - City:** Dallas

- **Item B.2.c - State:** TX

- **Item B.2.e - Zip Code:** 75201

- **Item B.2.f - Telephone:** 972-934-4700

- **Item B.2.g - Public Website:** nexpointassetmgmt.com/income-fund/

### Item B.3 - Location of books and records

**Location books Record: 1**

- **a. Name of person (e.g., a custodian of records):** American Stock Transfer & Trust Company, LLC

- **b. Street 1:** 6201 15th Avenue

- **c. City:** Brooklyn

- **d. State, if applicable:** NY

- **e. Foreign country, if applicable:** US

- **f. Zip code and zip code extension, or foreign postal code:** 11219

- **g. Telephone number:** 1-800-937-5449

- **h. Briefly describe the books and records kept at this location:** Records As Transfer Agent For Trust

**Location books Record: 2**

- **a. Name of person (e.g., a custodian of records):** SEI Investments Global Funds Services

- **b. Street 1:** 1 Freedom Valley Drive

- **c. City:** Oaks

- **d. State, if applicable:** PA

- **e. Foreign country, if applicable:** US

- **f. Zip code and zip code extension, or foreign postal code:** 19456

- **g. Telephone number:** 1-610-676-1000

- **h. Briefly describe the books and records kept at this location:** Records as Administrator for Trust

**Location books Record: 3**

- **a. Name of person (e.g., a custodian of records):** Highland Capital Management Fund Advisors, L.P.

- **b. Street 1:** 300 Crescent Court

- **Street 2:** Suite 700

- **c. City:** Dallas

- **d. State, if applicable:** TX

- **e. Foreign country, if applicable:** US

- **f. Zip code and zip code extension, or foreign postal code:** 75201

- **g. Telephone number:** 1-877-665-1287

- **h. Briefly describe the books and records kept at this location:** Records as Advisor and Administrator for Trust

**Location books Record: 4**

- **a. Name of person (e.g., a custodian of records):** NexPoint Securities, Inc.

- **b. Street 1:** 300 Crescent Court

- **Street 2:** Suite 700

- **c. City:** Dallas

- **d. State, if applicable:** TX

- **e. Foreign country, if applicable:** US

- **f. Zip code and zip code extension, or foreign postal code:** 75201

- **g. Telephone number:** 1-972-628-4100

- **h. Briefly describe the books and records kept at this location:** Records as Distributor for Trust

**Location books Record: 5**

- **a. Name of person (e.g., a custodian of records):** The Bank of New York Mellon

- **b. Street 1:** 240 Greenwich Street

- **c. City:** New York

- **d. State, if applicable:** NY

- **e. Foreign country, if applicable:** US

- **f. Zip code and zip code extension, or foreign postal code:** 10286

- **g. Telephone number:** 1-212-495-1784

- **h. Briefly describe the books and records kept at this location:** Records as Custodian for Trust

- **Item B.4.a - Is this the first filing by the Registrant?:** No

- **Item B.4.b - Is this the last filing by the Registrant?:** No

- **Item B.5.a - Is the Registrant part of a family of investment companies?:** Yes

- **Item B.5.a.i - Full name of family of investment companies:** NexPoint Funds

### Item B.6 - Organization

- [ ] a. Open-end management investment company registered under the Act on Form N-1A

- [x] b. Closed-end management investment company registered under the Act on Form N-2

- [ ] c. Separate account offering variable annuity contracts which is registered under the Act as a management investment company on Form N-3

- [ ] d. Separate account offering variable annuity contracts which is registered under the Act as a unit investment trust on Form N-4

- [ ] e. Small business investment company registered under the Act on Form N-5

- [ ] f. Separate account offering variable insurance contracts which is registered under the Act as a unit investment trust on Form N-6

- [ ] g. Unit investment trust registered under the Act on Form N-8B-2

- **Item B.6.i - Total number of Series:** —

- **Item B.7 - Is the Registrant the issuer of a class of securities registered under the Securities Act?:** Yes

### Item B.8 - Directors

| Name              | Is Interested Person?   | Other Investment Company File Numbers                                                                                              |
|:---|:---|:---|
| Dorri McWhorter   | No                      | 811-07142, 811-05344, 811-23144, 811-21866, 811-23129                                                                              |
| Dr. Bob Froehlich | No                      | 811-23152, 811-07142, 811-23129, 811-23156, 811-23144, 811-21869, 811-23143, 811-23142, 811-23153, 811-21866, 811-23369            |
| John Honis        | Yes                     | 811-07142, 811-23156, 811-23142, 811-23152, 811-23369, 811-23129, 811-23143, 811-23144, 811-23153, 811-21869, 811-21866            |
| Bryan A. Ward     | No                      | 811-23369, 811-23156, 811-21869, 811-23143, 811-21866, 811-23144, 811-23152, 811-23142, 811-23153, 811-07142, 811-23129            |
| Ethan Powell      | No                      | 811-23143, 811-23142, 811-21866, 811-23153, 811-07142, 811-23129, 811-23312, 811-23144, 811-23156, 811-21869, 811-23369, 811-23152 |

### Item B.9. Chief compliance officer.

**Chief compliance officer Record: 1**

- **a. Full Name:** Stephanie Vitiello

- **b. CRD Number, if any:** N/A

- **c. Street Address 1:** 200 Crescent Court, Suite 700

- **d. City:** Dallas

- **e. State, if applicable:** TX

- **f. Foreign country, if applicable:** US

- **g. Zip code:** 75201

- **h. Telephone number:** XXXXXX

- **i. Has the chief compliance officer changed since the last filing?:** No

If the chief compliance officer is compensated or employed by any person other than the Registrant, provide:

**CCO employer Record: 1**

- **i. Name of the person:** —

- **ii. Person’s IRS Employer Identification Number:** —

### Item B.10. Matters for security holder vote.

- **Were any matters submitted by the Registrant for its security holders’ vote during the reporting period?** —

| Series Name          | Series ID   |
|:---|:---|
| Highland Income Fund | N/A         |

- **Item B.11.b - Has any proceeding previously reported been terminated?:** No

- **Item B.12.a - Were any claims with respect to the Registrant filed under a fidelity bond?:** No

- **Item B.13.a - Are the Registrant's officers or directors covered under any insurance policy?:** Yes

- **Item B.13.a.i - If yes, were any claims filed under the policy during the reporting period?:** No

- **Item B.14 - Did an affiliated person provide any form of financial support to the Registrant?:** No

- **Item B.15.a.i - Release numbers:**
  - IC-32078

### Item B.16. Principal underwriters.

**Principal underwriter Record: 1**

- **i. Full name:** NexPoint Securities, Inc.

- **ii. SEC file number:** 8-69128

- **iii. CRD number:** 000165013

- **iv. LEI, if any:** N/A

- **v. State, if applicable:** TX

- **vi. Foreign country, if applicable:** US

- **vii. Is the principal underwriter an affiliated person...?:** Yes

- **b. Have any principal underwriters been hired or terminated during the reporting period?** No

### Item B.17. Independent public accountant.

**Public accountant Record: 1**

- **a. Full Name:** Cohen & Company, Ltd.

- **b. PCAOB Number:** 925

- **c. LEI, if any:** N/A

- **d. State, if applicable:** OH

- **e. Foreign country, if applicable:** US

- **f. Has the independent public accountant changed since the last filing?** No

- **Item B.18 - Did an independent public accountant's report on internal control note any material weaknesses?:** No

- **Item B.19 - Did an independent public accountant issue an opinion other than an unqualified opinion?:** No

- **Item B.20 - Have there been material changes in the method of valuation?:** No

- **Item B.21 - Have there been any changes in accounting principles or practices?:** No

- **Item B.22.a - Were any payments made to shareholders as a result of an error in calculating NAV?:** No

## Part C: Additional Questions for Management Investment Companies

### Management Investment Record: 1 - Highland Income Fund

**Item C.1. Background information.**

- **a. Full Name of the Fund:** Highland Income Fund

- **c. LEI:** 254900CMUE9FRYL2UR80

- **d. Is this the first filing on this form by the Fund?:** No

**Item C.2. Classes of open-end management investment companies.**

- **a. How many Classes of shares of the Fund (if any) are authorized?:** 0

- **b. How many new Classes of shares of the Fund were added during the reporting period?:** 0

- **c. How many Classes of shares of the Fund were terminated during the reporting period?:** 0

**Item C.3. Type of fund.**

- [ ] Exchange-Traded Fund or Exchange-Traded Managed Fund or offers a Class that itself is an Exchange-Traded Fund or Exchange-Traded Managed Fund

-   [ ] i. Exchange-Traded Fund

-   [ ] ii. Exchange-Traded Managed Fund

- [ ] b. Index Fund

- [ ] c. Seeks to achieve performance results that are a multiple of a benchmark, the inverse of a benchmark, or a multiple of the inverse of a benchmark

- [ ] d. Interval Fund

- [ ] e. Fund of Funds

- [ ] f. Master-Feeder Fund

- [ ] g. Money Market Fund

- [ ] h. Target Date Fund

-   [ ] i. Underlying fund to a variable annuity or variable life insurance contract

- [x] N/A

**Item C.4 - Does the Fund seek to operate as a 'non-diversified company'?** Yes

**Item C.5 - Does the fund invest in a controlled foreign corporation?** No

**Item C.6. Securities lending.**

- **a. Is the Fund authorized to engage in securities lending transactions?** Yes

- **b. Did the Fund lend any of its securities during the reporting period?** Yes

  - **i. If yes, during the reporting period, did any borrower fail to return the loaned securities by the contractual deadline with the result that:**

    - **1. The Fund (or it securities lending agent) liquidated collateral pledged to secure the loaned securities?** No

    - **2. The Fund was otherwise adversely impacted?** No

**c. Provide the information requested below about each securities lending agent, if any, retained by the Fund:**

**Securities Lending Record: 1**

- **i. Full name of securities lending agent:** The Bank of New York Mellon

- **ii. LEI, if any:** HPFHU0OQ28E4N0NFVK49

- **iii. Is the securities lending agent an affiliated person...?** No

- **iv. Does the securities lending agent... indemnify the Fund against borrower default?** Yes

- **v. If the entity providing the indemnification is not the securities lending agent, provide the following information:**

  **Idemnity Providers Record: 1**

  - **1. Name of person providing indemnification:** —

  - **2. LEI, if any:** —

- **vi. Did the Fund exercise its indemnification rights during the reporting period?** No

**d. If a person providing cash collateral management services to the Fund in connection with the Fund's securities lending activities does not also serve as securities lending agent, provide the following information about each cash collateral manager:**

**Collateral Managers Record: 1**

- **i. Full name of cash collateral manager:** BNY Mellon

- **ii. LEI, if any:** HPFHU0OQ28E4N0NFVK49

- **iii. Is the cash collateral manager an affiliated person, or an affiliated person of an affiliated person, of a securities lending agent retained by the Fund??** Yes

- **iv. Is the cash collateral manager an affiliated person of the Fund?** No

**e. Types of payments made to one or more securities lending agents and cash collateral managers (check all that apply):**

- [x] Revenue sharing split

- [ ] Fee-based revenue split (other than administrative fee)

- [ ] Administrative fee

- [ ] Cash collateral reinvestment fee

- [ ] Indemnification fee

- [ ] Other

- [ ] N/A

- **f. Provide the monthly average of the value of portfolio securities on loan during the reporting period:** $4,807,176.25

- **g. Provide the net income from securities lending activities:** $46,330.65

**Item C.7. Reliance on certain statutory exemption and rules.**

Did the Fund rely on the following rules?

- Rule 23c-1 (17 CFR 270.23c-1)

- Rule 17a-7 (17 CFR 270.17a-7)

- Rule 12d1-1 (17 CFR 270.12d1-1)

- Rule 32a-4 (17 CFR 270.32a-4)

- Rule 12d1-4 (17 CFR 270.12d1-4)

- Rule 17a-6 (17 CFR 270.17a-6)

- Rule 18f-4 (17 CFR 270.18f-4)

**Item C.8. Expense limitations.**

- **a. Did the Fund have an expense limitation arrangement?** No

- **b. Were any expenses reduced or waived?** No

- **c. Are the fees waived subject to recoupment?** No

- **d. Were any expenses previously waived recouped during the period?** No

**Item C.9. Investment advisers.**

**Investment Advisers Record: 1**

- **i. Full name:** Highland Capital Management Fund Advisors, L.P.

- **ii. SEC file number:** 801-69968

- **iii. CRD number:** 000149653

- **iv. LEI, if any:** 5493002K2NSYVU046L11

- **v. State, if applicable:** TX

- **vi. Foreign country, if applicable:** US

- **vii. Was the investment adviser hired during the reporting period?:** No

**Item C.10. Transfer agents.**

**Transfer Agents Record: 1**

- **i. Full name:** American Stock Transfer & Trust Company, LLC

- **ii. SEC file number:** 084-00416

- **iii. LEI, if any:** 254900TS5EWP83BEOU02

- **iv. State, if applicable:** NY

- **v. Foreign country, if applicable:** US

- **vi. Is the transfer agent an affiliated person of the Fund or its investment adviser(s)?:** No

- **vii. Is the transfer agent a sub-transfer agent?:** No

- **b. Has a transfer agent been hired or terminated during the reporting period?** No

**Item C.11. Pricing services.**

**Pricing Services Record: 1**

- **i. Full name:** Intercontinental Exchange, Inc.

- **ii. LEI, if any, or provide and describe other identifying number:** 5493000F4ZO33MV32P92

- **iii. State, if applicable:** NY

- **iv. Foreign country, if applicable:** US

- **v. Is the pricing service an affiliated person of the Fund or its investment adviser(s)?:** No

**Pricing Services Record: 2**

- **i. Full name:** IHS Markit

- **ii. LEI, if any, or provide and describe other identifying number:** 549300HLPTRASHS0E726

- **v. Is the pricing service an affiliated person of the Fund or its investment adviser(s)?:** No

**Pricing Services Record: 3**

- **i. Full name:** S&P

- **ii. LEI, if any, or provide and describe other identifying number:** 549300U4VWNITEKO2881

- **iii. State, if applicable:** DE

- **iv. Foreign country, if applicable:** US

- **v. Is the pricing service an affiliated person of the Fund or its investment adviser(s)?:** No

**Pricing Services Record: 4**

- **i. Full name:** Thomson Reuters Corporation

- **ii. LEI, if any, or provide and describe other identifying number:** 549300561UZND4C7B569

- **v. Is the pricing service an affiliated person of the Fund or its investment adviser(s)?:** No

**Pricing Services Record: 5**

- **i. Full name:** Pricing Direct

- **ii. LEI, if any, or provide and describe other identifying number:** 549300WIC0TOJ7N7GD54

- **iii. State, if applicable:** DE

- **iv. Foreign country, if applicable:** US

- **v. Is the pricing service an affiliated person of the Fund or its investment adviser(s)?:** No

**Pricing Services Record: 6**

- **i. Full name:** Bloomberg

- **ii. LEI, if any, or provide and describe other identifying number:** 254900BF4G8VMW8GG471

- **iii. State, if applicable:** NY

- **iv. Foreign country, if applicable:** US

- **v. Is the pricing service an affiliated person of the Fund or its investment adviser(s)?:** No

- **b. Was a pricing service hired or terminated during the reporting period?** No

**Item C.12. Custodians.**

**a. Provide the following information about each person that provided custodial services to the Fund during the reporting period:**

**Custodians Record: 1**

- **i. Full name:** The Bank of New York Mellon

- **ii. LEI, if any:** HPFHU0OQ28E4N0NFVK49

- **iii. State, if applicable:** NY

- **iv. Foreign country, if applicable:** US

- **v. Is the custodian an affiliated person of the Fund or its investment adviser(s)?:** No

- **vi. Is the custodian a sub-custodian?:** No

- **vii. With respect to the custodian, check below to indicate the type of custody:** Bank - section 17(f)(1) (15 U.S.C. 80a-17(f)(1))

- **b. Was a custodian hired or terminated during the reporting period?** No

**Item C.13 - Shareholder Servicing Agents**

**Shareholder Servicing Agents Record: 1**

- **i. Full name:** American Stock Transfer & Trust Company, LLC

- **ii. LEI, if any:** 254900TS5EWP83BEOU02

- **iii. State, if applicable:** NY

- **iv. Foreign country, if applicable:** US

- **v. Is the shareholder servicing agent an affiliated person?:** No

- **vi. Is the shareholder servicing agent a sub-shareholder servicing agent?:** No

- **b. Has a shareholder servicing agent been hired or terminated during the reporting period?** No

**Item C.14. Administrators.**

**a. Provide the following information about each administrator of the Fund:**

**Administrators Record: 1**

- **i. Full name:** SEI INVESTMENTS GLOBAL FUNDS SERVICES

- **ii. LEI, if any, or other identifying number:** 801-24593

- **iii. State, if applicable:** PA

- **iv. Foreign country, if applicable:** US

- **v. Is the administrator an affiliated person of the Fund or its investment adviser(s)?:** No

- **vi. Is the administrator a sub-administrator?:** No

**Administrators Record: 2**

- **i. Full name:** Highland Capital Management Fund Advisors, L.P.

- **ii. LEI, if any, or other identifying number:** 5493002K2NSYVU046L11

- **iii. State, if applicable:** DE

- **iv. Foreign country, if applicable:** US

- **v. Is the administrator an affiliated person of the Fund or its investment adviser(s)?:** Yes

- **vi. Is the administrator a sub-administrator?:** No

- **b. Has a third-party administrator been hired or terminated during the reporting period?** No

**Item C.15 - Affiliated broker-dealers.**

**Broker Dealers Record: 1**

- **a. Full name:** NexPoint Securities, Inc.

- **b. SEC file number:** 8-69128

- **c. CRD number:** 000165013

- **d. LEI, if any:** N/A

- **e. State, if applicable:** TX

- **f. Foreign country, if applicable:** US

- **g. Total commissions paid to the affiliated broker-dealer for the reporting period::** $0.00

**Item C.16. Brokers.**

**a. For each of the ten brokers that received the largest dollar amount of brokerage commissions...**

**Brokers Record: 1**

- **i. Full name of broker:** STIFEL NICOLAUS & CO., INC.

- **ii. SEC file number:** 008-01447

- **iii. CRD number:** 000000793

- **iv. LEI, if any:** 5WUVMA08EYG4KEUPW589

- **v. State, if applicable:** MO

- **vi. Foreign country, if applicable:** US

- **vii. Gross commissions paid by the Fund for the reporting period:** $3,421.40

**Brokers Record: 2**

- **i. Full name of broker:** JONES & ASSOCIATES

- **ii. SEC file number:** 8-26089

- **iii. CRD number:** 000106861

- **iv. LEI, if any:** N/A

- **v. State, if applicable:** MD

- **vi. Foreign country, if applicable:** US

- **vii. Gross commissions paid by the Fund for the reporting period:** $33,402.10

**Brokers Record: 3**

- **i. Full name of broker:** NEWEDGE

- **ii. SEC file number:** 008-66125

- **iii. CRD number:** 000128351

- **iv. LEI, if any:** 549300F35UE0BOM1WJ55

- **v. State, if applicable:** NY

- **vi. Foreign country, if applicable:** US

- **vii. Gross commissions paid by the Fund for the reporting period:** $7,912.50

**Brokers Record: 4**

- **i. Full name of broker:** WALLACHBETH CAPITAL

- **ii. SEC file number:** 8-67936

- **iii. CRD number:** 000147853

- **iv. LEI, if any:** 549300R371KUKXEXC133

- **v. State, if applicable:** FL

- **vi. Foreign country, if applicable:** US

- **vii. Gross commissions paid by the Fund for the reporting period:** $15,915.29

**Brokers Record: 5**

- **i. Full name of broker:** MORGAN STANLEY & CO, INC

- **ii. SEC file number:** 008-15869

- **iii. CRD number:** 000008209

- **iv. LEI, if any:** 9R7GPTSO7KV3UQJZQ078

- **v. State, if applicable:** MD

- **vi. Foreign country, if applicable:** US

- **vii. Gross commissions paid by the Fund for the reporting period:** $6,566.38

**Brokers Record: 6**

- **i. Full name of broker:** J.P. MORGAN SECURITIES

- **ii. SEC file number:** 008-35008

- **iii. CRD number:** 000000079

- **iv. LEI, if any:** ZBUT11V806EZRVTWT807

- **v. State, if applicable:** OH

- **vi. Foreign country, if applicable:** US

- **vii. Gross commissions paid by the Fund for the reporting period:** $4,387.86

**Brokers Record: 7**

- **i. Full name of broker:** MKM PARTNERS

- **ii. SEC file number:** 8-50311

- **iii. CRD number:** 000043552

- **iv. LEI, if any:** 54930015ODYESNP2QX15

- **v. State, if applicable:** NY

- **vi. Foreign country, if applicable:** US

- **vii. Gross commissions paid by the Fund for the reporting period:** $3,107.98

**Brokers Record: 8**

- **i. Full name of broker:** MERRILL LYNCH, PIERCE, FENNER & SMITH

- **ii. SEC file number:** 008-07221

- **iii. CRD number:** 000007691

- **iv. LEI, if any:** 8NAV47T0Y26Q87Y0QP81

- **v. State, if applicable:** NY

- **vi. Foreign country, if applicable:** US

- **vii. Gross commissions paid by the Fund for the reporting period:** $23,886.63

**Brokers Record: 9**

- **i. Full name of broker:** BTIG

- **ii. SEC file number:** 008-65473

- **iii. CRD number:** 000122225

- **iv. LEI, if any:** 549300GTG9PL6WO3EC51

- **v. State, if applicable:** CA

- **vi. Foreign country, if applicable:** US

- **vii. Gross commissions paid by the Fund for the reporting period:** $4,663.47

**Brokers Record: 10**

- **i. Full name of broker:** RAYMOND JAMES

- **ii. SEC file number:** 008-10999

- **iii. CRD number:** 000000705

- **iv. LEI, if any:** U4ONQX15J3RO8XCKE979

- **v. State, if applicable:** MD

- **vi. Foreign country, if applicable:** US

- **vii. Gross commissions paid by the Fund for the reporting period:** $4,513.60

**Aggregate Commission:** $126,423.11

**Item C.17.a. Principal transaction counterparties.**

| Name                                | SEC file number   |   CRD number | LEI                  | State   | Country   | Total Purchase/Sale ($)   |
|:---|:---|---:|:---|:---|:---|:---|
| Cantor Fitzgerald Co.               | 008-00201         |    000000134 | 5493004J7H4GCPG6OB62 | NY      | US        | $6,120,132.00             |
| MORGAN STANLEY & CO, INC            | 008-15869         |    000008209 | 9R7GPTSO7KV3UQJZQ078 | MD      | US        | $15,640,111.33            |
| BANK OF NEW YORK                    | 008-35303         |    000017481 | N/A                  | NY      | US        | $134,443,163.75           |
| MIZUHO SECURITIES                   | 008-37710         |    000019647 | 7TK5RJIZDFROZCA6XF66 | NY      | US        | $40,474,098.33            |
| HIGHLAND INFORMATION SERVICES, INC. | 008-42215         |    000025873 | N/A                  | AL      | US        | $7,489,930.45             |
| WELLS FARGO BROKERAGE SERVICES, LLC | 008-65876         |    000126292 | VYVVCKR63DVZZN70PB21 | CA      | US        | $3,333,750.00             |
| NEWEDGE                             | 008-66125         |    000128351 | 549300F35UE0BOM1WJ55 | NY      | US        | $14,000,000.00            |
| GOLDMAN, SACHS & CO.                | 008-00129         |    000000361 | FOR8UP27PHTHYVLBNG30 | UT      | US        | $15,089,500.00            |
| J.P. MORGAN SECURITIES              | 008-35008         |    000000079 | ZBUT11V806EZRVTWT807 | OH      | US        | $11,842,750.00            |
| SEAPORT SECURITIES CORPORATION      | 8-24971           |    000008330 | N/A                  | NY      | US        | $7,172,960.00             |

- **Item C.17.b - Aggregate value of principal purchase/sale transactions:** $263,115,466.40

- **Item C.18 - Did the Fund pay commissions for 'brokerage and research services'?:** No

- **Item C.19.a - Fund's monthly average net assets:** $1,024,671,586.47

**Item C.20. Lines of credit, interfund lending and interfund borrowing.**

- **b. Did the Fund engage in interfund lending?** —

- **c. Did the Fund engage in interfund borrowing?** —

## N-CEN: Part G: Attachments

**Item G.1a. Attachments.**

Attachments applicable to all Registrants. All Registrants shall file the following attachments, as applicable, with the current report. Indicate the attachments filed with the current report by checking the applicable items below:

- [x] i. Legal proceedings

- [ ] ii. Provision of financial support

- [x] iii. Independent public accountant's report on internal control (management investment companies other than small business investment companies only)

- [ ] iv. Change in accounting principles and practices

- [ ] v. Information required to be filed pursuant to exemptive orders

- [ ] vi. Other information required to be included as an attachment pursuant to Commission rules and regulations

## N-CEN: Signature

Pursuant to the requirements of the Investment Company Act of 1940, the Registrant has duly caused this report to a be signed on its behalf by the undersigned hereunto duly authorized.

**Registrant:** HIGHLAND INCOME FUND\MA

**Date:** 2023-03-10

**Signature:** Stephanie Vitiello

**Title:** Chief Compliance Officer