Highland Funds Ii NPORTP NexPoint Climate Tech Fund (Jun 2024 report)

INVESTMENT PORTFOLIO (unaudited)


As of June 30, 2024		NexPoint Climate Tech Fund


Shares			Value ($)
	Common Stock — 93.0%
	CONSUMER DISCRETIONARY — 1.1%
	2,250	BorgWarner, Inc. (a)		72,540

	CONSUMER STAPLES — 4.7%
	5,600	Darling Ingredients, Inc. (b)		205,800
	5,400	Primo Water Corp. (a)		118,044

				323,844

	ENERGY — 7.5%
	26,200	Clean Energy Fuels Corp. (b)		69,954
	7,300	Green Plains, Inc. (b)		115,778
	1,109	Hess Midstream L.P., Class A (a)		40,412
	50,237	John Wood Group PLC (b)		130,446
	6,300	New Fortress Energy, Inc., Class A (a)		138,474
	15,000	Ur-Energy, Inc. (b)		21,000

				516,064

	INDUSTRIALS — 18.9%
	1,120	AECOM (a)		98,717
	2,150	Chart Industries, Inc. (a)(b)(c)		310,331
	780	Clean Harbors, Inc. (a)(b)		176,397
	3,231	Montrose Environmental Group, Inc. (a)(b)		143,973
	1,250	MYR Group, Inc. (b)		169,638
	16,200	SGL Carbon (b)		110,000
	9,000	Stem, Inc. (b)(c)		9,990
	600	Tetra Tech, Inc. (a)		122,688
	20,000	Yellow Cake PLC (b)		146,956

				1,288,690

	INFORMATION TECHNOLOGY — 3.4%
	50,000	Bitfarms (b)		128,500
	16,500	indie Semiconductor, Inc., Class A (b)		101,805

				230,305

	MATERIALS — 39.4%
	3,150	Crown Holdings, Inc. (a)		234,328
	48,000	DS Smith PLC		254,397
	32,355	Ecovyst, Inc. (a)(b)		290,224
	3,200	Freeport-McMoRan, Inc. (a)		155,520
	11,982	MP Materials Corp. (a)(b)(c)		152,531
	250,000	MPM Holdings, Inc. (b)(d)		1,250,000
	7,565	Teck Resources, Ltd., Class B (a)		362,364

				2,699,364

	UTILITIES — 18.0%
	7,000	AES Corp. (a)		122,990
	30,000	Altus Power, Inc., Class A (b)		117,600
	9,600	Brookfield Renewable Partners L.P.		237,792
	16,000	Clearway Energy, Inc., Class C (a)		395,040
	10,350	RWE		355,327

				1,228,749

		Total Common Stock (Cost $6,102,003)		6,359,556


	Corporate Obligations — 9.5%

Principal Amount ($)
	ENERGY — 3.8%
	200,000	EQM Midstream Partners L.P. 4.75%, 01/15/31 (e)		187,153
	75,000	Hess Midstream Operations L.P. 4.25%, 02/15/30 (e)		68,880

				256,033

	UTILITIES — 5.7%
	400,000	Atlantica Sustainable Infrastructure PLC 4.13%, 06/15/28 (e)		391,832

		Total Corporate Obligations (Cost $652,544)		647,865


Shares			Value ($)
	Preferred Stock — 6.0%
	UTILITIES — 6.0%
	10,000	NextEra Energy, Inc. 6.93%, 09/01/2025 (b)(c)		414,900

		Total Preferred Stock (Cost $494,005)		414,900

	Master Limited Partnership — 3.3%
	ENERGY — 3.3%
	14,072	Energy Transfer L.P. (a)		228,248

		Total Master Limited Partnership (Cost $214,255)		228,248


	Convertible Bond — 2.5%

Principal Amount ($)
	UTILITIES — 2.5%
	350,000	Sunnova Energy International, Inc. 0.25%, 12/01/26		171,438

		Total Convertible Bond (Cost $212,960)		171,438

	Rights — 0.1%

Units
	HEALTHCARE — 0.1%
	64,770	Paratek Pharmaceuticals, Inc. (b)(f)(g)		5,181

		Total Rights (Cost $–)		5,181


Contracts
	Purchased Put Options (b) — 0.1%
	500	Total Purchased Put Options (Cost $15,525)		7,500

	Warrants — 0.1%

Units
	ENERGY — 0.1%
	15,000	Ur-Energy, Inc., Expires 02/20/2026 (b)		5,100

		Total Warrants (Cost $150)		5,100


Principal Amount ($)			Value ($)
	Repurchase Agreements (h)(i) — 7.0%
	249,000	Daiwa Capital Markets 5.350%, dated 06/28/2024 to be repurchased on 07/01/2024, repurchase price $249,111 (collateralized by U.S. Government obligations, ranging in par value $16 - $30,564, 0.000% - 7.500%, 07/11/2024 - 07/01/2054; with total market value $253,990)		249,000

INVESTMENT PORTFOLIO (unaudited) (continued)


As of June 30, 2024		NexPoint Climate Tech Fund


Principal Amount ($)			Value ($)
	Repurchase Agreements (h)(i) (continued)
	226,895	RBC Dominion Securities 5.320%, dated 06/28/2024 to be repurchased on 07/01/2024, repurchase price $226,996 (collateralized by U.S. Government obligations, ranging in par value $6 - $46,182, 0.000% - 6.500%, 07/05/2024 - 05/20/2054; with total market value $231,433)		226,895

		Total Repurchase Agreements (Cost $475,895)		475,895

	Cash Equivalents — 0.5%

Shares
	MONEY MARKET FUND (j) — 0.5%
	30,980	Dreyfus Treasury Obligations Cash Management, Institutional Class 5.180%		30,980

		Total Cash Equivalents (Cost $30,980)		30,980

	Total Investments - 122.1% (Cost $8,198,317)			8,346,663


Shares			Value ($)
	Securities Sold Short — (17.8)%
	Exchange-Traded Fund — (4.2)%
	(2,350)	Industrial Select Sector SPDR Fund ETF		(286,395	)

		Total Exchange-Traded Funds (Proceeds $282,977)		(286,395	)

	Common Stock — (13.6)%
	CONSUMER DISCRETIONARY — (2.0)%
	(700)	Tesla, Inc. (k)		(138,516	)

	INDUSTRIALS — (7.7)%
	(1,100)	EnerSys		(113,872	)
	(3,350)	Fluence Energy, Inc., Class A (k)		(58,089	)
	(800)	Generac Holdings, Inc. (k)		(105,776	)
	(7,000)	Joby Aviation, Inc. (k)		(35,700	)
	(3,350)	Vestas Wind Systems (k)		(77,743	)
	(280)	Watsco, Inc.		(129,707	)

				(520,887	)

	INFORMATION TECHNOLOGY — (1.0)%
	(3,400)	JinkoSolar Holding Co, Ltd. ADR		(70,448	)

	MATERIALS — (2.9)%
	(150)	Avery Dennison Corp.		(32,798	)
	(320)	Ecolab, Inc.		(76,160	)
	(190)	Packaging Corp of America		(34,686	)


Shares			Value ($)
	MATERIALS (continued)
	(500)	Southern Copper Corp.		(53,870	)

				(197,514	)

		Total Common Stock (Proceeds $950,850)		(927,365	)

		Total Securities Sold Short - (17.8)% (Proceeds $1,233,827)		(1,213,760	)

	Other Assets & Liabilities, Net - (4.3)% (l)			(295,086	)

	Net Assets - 100.0%			6,837,817

(a)	All or part of this security is pledged as collateral for short sales. The fair value of the securities pledged as collateral was $3,162,821.

(b)	Non-income producing security.

(c)	Securities (or a portion of securities) on loan. As of June 30, 2024, the fair value of securities loaned was $887,752. The loaned securities were secured with cash and/or securities collateral of $475,895. Collateral is calculated based on prior day’s prices.

(d)

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 policies and procedures established by the Board. Additional Information regarding such securities follows:

Restricted

Security

Security
Type

Acquisition
Date

Cost of
Security

Fair Value at
Period End

Percent of
Net Assets

MPM Holdings, Inc.

Common
Stock

5/15/2019

—

1,250,000

18.3

(e)

Securities exempt from registration under Rule 144A of the 1933 Act. These securities may only be resold in transactions exempt from registration to qualified institutional buyers. The Board has determined these investments to be liquid. At June 30, 2024, these securities amounted to $794,821 or 11.6% of net assets.

(f)	Securities with a total aggregate value of $5,181, or 0.1% 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.

(g)

Represents fair value as determined by the Investment Adviser pursuant to the policies and procedures approved by the Board of Trustees (the “Board”). The Board has designated the Investment Adviser as “valuation designee” for the Fund pursuant to Rule 2a-5 of the Investment Company Act of 1940, as amended. The Investment Adviser 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 $5,181, or 0.1% of net assets, were fair valued under the Fund’s valuation procedures as of June 30, 2024. Please see Notes to Investment Portfolio.

(h)	Tri-Party Repurchase Agreement.

INVESTMENT PORTFOLIO (unaudited) (concluded)


As of June 30, 2024		NexPoint Climate Tech Fund

(i)	This security was purchased with cash collateral held from securities on loan. The total value of such securities as of June 30, 2024 was $475,895.

(j)	Rate reported is 7 day effective yield.

(k)	No dividend payable on security sold short.

(l)	As of June 30, 2024, $1,227,854 in cash was segregated or on deposit with the brokers to cover investments sold short and is included in “Other Assets & Liabilities, Net”.

Purchased options contracts outstanding as of June 30, 2024 were as follows:


Description	Exercise Price		Counterparty		Expiration Date		Number of Contracts			Notional Value			Premium			Value
PURCHASED PUT OPTIONS:
Bitfarms, Ltd.	$	2.00		Pershing		August 2024		500		$	128,500		$	15,525		$	7,500
Written options contracts outstanding as of June 30, 2024 were as follows:
Description	Exercise Price		Counterparty		Expiration Date		Number of Contracts			Notional Value			Premium			Value
WRITTEN CALL OPTIONS:
Bitfarms, Ltd.	$	3.00		Pershing		August 2024		(500	)	$	(128,500	)	$	(6,975	)	$	(14,500	)

NOTES TO INVESTMENT PORTFOLIO (unaudited)


As of June 30, 2024		NexPoint Funds II

Organization

NexPoint Funds II (the “Trust”) is a Massachusetts business trust organized on August 10, 1992. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company with one portfolio offered as of June 30, 2024, that is diversified. This report covers information for the period ended June 30, 2024 for the NexPoint Climate Tech Fund (the “Fund”).

Valuation of Investments

Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees (the “Board”) has designated NexPoint Asset Management, L.P. (“NexPoint” or the “Investment Adviser”) as the Fund’s valuation designee to perform the fair valuation determination for securities and other assets held by the Fund. NexPoint acting through its “Valuation Committee”, is responsible for determining the fair value of investments for which market quotations are not readily available. The Valuation Committee is comprised of officers of NexPoint and certain of NexPoint’s affiliated companies and determines fair value and oversees the calculation of the net asset value (“NAV”). The Valuation Committee is subject to Board oversight and certain reporting and other requirements intended to provide the Board the information it needs to oversee NexPoint’s fair value determinations.

The Fund’s investments are recorded at fair value. In computing the Fund’s net assets attributable to shares, securities with readily available market quotations on the New York Stock Exchange (“NYSE”), National Association of Securities Dealers Automated Quotation (“NASDAQ”) or other nationally recognized exchange, use the closing quotations on the respective exchange for valuation of those securities. Securities for which there are no readily available market quotations will be valued pursuant to policies and procedures established by NexPoint and approved by the Board. Typically, such securities will be valued at the mean between the most recently quoted bid and ask prices provided by the principal market makers. If there is more than one such principal market maker, the value shall be the average of such means. Securities without a sale price or quotations from principal market makers on the valuation day may be priced by an independent pricing service. Generally, the Fund’s loan and bond positions are not traded on exchanges and consequently are valued based on a mean of the bid and ask price from the third-party pricing services or broker dealer sources that the Investment Adviser has determined to have the capability to provide appropriate pricing services.

Securities for which market quotations are not readily available, or for which the Fund has determined that the price received from a pricing service or broker-dealer is “stale” or otherwise does not represent fair value (such as when events materially affecting the value of securities occur between the time when market price is determined and calculation of the Fund’s NAV) will be valued by the Fund at fair value, as determined by the Valuation Committee in good faith in accordance with policies and procedures established by NexPoint and approved by the Board, taking into account factors reasonably determined to be relevant, including, but not limited to: (i) the fundamental analytical data relating to the investment; (ii) the nature and duration of restrictions on disposition of the securities; and (iii) an evaluation of the forces that influence the market in which these securities are purchased and sold. In these cases, the Fund’s NAV will reflect the affected portfolio securities’ fair value as determined in the judgment of the Valuation Committee instead of being determined by the market. Using a fair value pricing methodology to value securities may result in a value that is different from a security’s most recent sale price and from the prices used by other investment companies to calculate their NAVs. Determination of fair value is uncertain because it involves subjective judgments and estimates.

There can be no assurance that the Fund’s valuation of a security will not differ from the amount that it realizes upon the sale of such security. Those differences could have a material impact to the Fund. The NAV shown in the Fund’s financial statements may vary from the NAV published by the Fund as of its period end because portfolio securities transactions are accounted for on the trade date (rather than the day following the trade date) for financial statement purposes.

NOTES TO INVESTMENT PORTFOLIO (unaudited) (concluded)


As of June 30, 2024		NexPoint Funds II

Fair Value Measurements

The Fund has performed an analysis of all existing investments and derivative instruments to determine the significance and character of inputs to its fair value determination. The levels of fair value inputs used to measure the Fund’s investments are characterized into a fair value hierarchy. Where inputs for an asset or liability fall into more than one level in the fair value hierarchy, the investment is classified in its entirety based on the lowest level input that is significant to that investment’s valuation. The three levels of the fair value hierarchy are described below:


Level 1 —		Quoted unadjusted prices for identical instruments in active markets to which the Fund has access at the date of measurement;

Level 2 —		Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active, but are valued based on executed trades; broker quotations that constitute an executable price; and alternative pricing sources supported by observable inputs are classified within Level 2. Level 2 inputs are either directly or indirectly observable for the asset in connection with market data at the measurement date; and

Level 3 —		Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. In certain cases, investments classified within Level 3 may include securities for which the Fund has obtained indicative quotes from broker-dealers that do not necessarily represent prices the broker may be willing to trade on, as such quotes can be subject to material management judgment. Unobservable inputs are those inputs that reflect the Fund’s own assumptions that market participants would use to price the asset or liability based on the best available information.

The Investment Adviser has established policies and procedures, as described above and approved by the Board, to ensure that valuation methodologies for investments and financial instruments that are categorized within all levels of the fair value hierarchy are fair and consistent. A Valuation Committee has been established to provide oversight of the valuation policies, processes and procedures, and is comprised of personnel from the Investment Adviser and its affiliates. The Valuation Committee meets monthly to review the proposed valuations for investments and financial instruments and is responsible for evaluating the overall fairness and consistent application of established policies.

As of June 30, 2024, the Fund’s investments consisted of common stocks, preferred stocks, master limited partnerships, exchange-traded funds, options, warrants, repurchase agreements, cash equivalents, and securities sold short.

The fair value of the Fund’s common stocks and preferred stocks, that are not actively traded on national exchanges, are generally priced using quotes derived from implied values, indicative bids, or a limited amount of actual trades and are classified as Level 3 assets because the inputs used by the brokers and pricing services to derive the values are not readily observable.

At the end of each calendar quarter, the Investment Adviser evaluates the Level 2 and 3 assets and liabilities for changes in liquidity, including but not limited to: whether a broker is willing to execute at the quoted price, the depth and consistency of prices from third party services, and the existence of contemporaneous, observable trades in the market. Additionally, the Investment Adviser evaluates the Level 1 and 2 assets and liabilities on a quarterly basis for changes in listings or delistings on national exchanges.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Fund’s investments may fluctuate from period to period. Additionally, the fair value of investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values the Fund may ultimately realize. Further, such investments may be subject to legal and other restrictions on resale or otherwise be less liquid than publicly traded securities.

For more information with regard to significant accounting policies, see the most recent annual or semi-annual report filed with the U.S. Securities and Exchange Commission.

Highland Funds Ii NPORT-PNexPoint Climate Tech Fund (Jun 2024 report)