Fund Description: Highland iBoxx Senior Loan ETF, formerly Pyxis/iBoxx Senior Loan ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the Highland Funds I, formerly Pyxis Funds I, formerly Highland Funds, an open-end investment management company. INVESTMENT OBJECTIVE: The Highland iBoxx Senior Loan ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Markit iBoxx USD Liquid Leveraged Loan Index. INDEX DESCRIPTION: The Markit iBoxx USD Liquid Leveraged Loan Index is a subset of the Markit iBoxx USD Leveraged Loan Index. Leveraged Loans are loans to companies that typically already have a high amount of debt and are often characterized by lower credit ratings or higher interest rates. The Index is a rules-based index consisting of some of the largest, most liquid Leveraged Loans, as measured by the number of active market participants trading the security and the dollar face amount of outstanding senior loans issued. Currently, loans eligible for inclusion in the Index are measured by type, size, liquidity, spread, credit rating and minimum time to maturity. FUND STRATEGY: The Fund will, under normal circumstances, invest at least 80% of its assets in component securities of the Index (Component Securities). The Fund may invest the remaining 20% of its assets in securities not included in the Index, but which Pyxis Capital L.P., the Fund's Adviser, believes will help the Fund track the Index. The Fund's 20% may invest in derivatives to track the Index, such as futures contracts, options on futures contracts, options, and swaps, cash and cash equivalents, including shares of money market funds. Unlike many investment companies, the Fund does not try to beat the index it tracks. The Fund uses a passive management strategy designed to track the total return performance of the Index as a proxy for the senior secured loan universe. The Adviser uses a representative sampling which is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to the Index. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics (such as return variability, duration, maturity or credit ratings and yield) and liquidity measures similar to those of the Index. The Fund may or may not hold all of the securities in the Index. The Component Securities primarily consist of senior loans to domestic or foreign corporations, partnerships and other entities that operate in a variety of industries and geographic regions. Senior Loans generally are arranged through private negotiations between a Borrower and several financial institutions (the Lenders) represented in each case by one or more such Lenders acting as agent of the several Lenders. The Component Securities in which the Fund will invest are expected to be below investment grade securities (also known as high yield securities or junk securities). FUND MANAGEMENT: Pyxis Capital, L.P. serves as the investment adviser to the Fund.