Fund Evaluator:
NexPoint Credit Catalyst Z (NEDZX)
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Best Performing in Nontraditional Bond Over the Last Year
| 11.2% | Artisan Global Unconstrained Investor (APFPX) |
| 6.3% | Goldman Sachs Dynamic Bond Inv (GZIRX) |
| 5.2% | PGIM Absolute Return Bond Z (PADZX) |
| 4.9% | Spectrum Low Volatility Investor (SVARX) |
| 4.8% | Spectrum Unconstrained Investor (SUNBX) |
Fund Details
NexPoint Credit Catalyst Z Overview
NexPoint Credit Catalyst Z (NEDZX) is an actively managed Taxable Bond Nontraditional Bond fund. NexPoint launched the fund in 2025.
The investment seeks current income and capital appreciation. The fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of the value of its total assets (net assets plus the amount of any borrowings for investment purposes) in credit instruments. The manager defines credit instruments broadly to include any debt instrument or instrument with debtlike characteristics.
About NexPoint Credit Catalyst Z (NEDZX)
There are 2 members of the management team with an average tenure of 1.08 years: James Dondero (2025), Scott Johnson (2025). Management tenure is more important for actively managed funds than passive index funds.
NexPoint Credit Catalyst Z has 29 securities in its portfolio. The top 10 holdings constitute 47.3% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
NexPoint Credit Catalyst Z is part of the Fixed Income global asset class and is within the Taxable Bond fund group. NexPoint Credit Catalyst Z has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is -1.5%. There is 0.0% allocated to foreign stock, and 1.9% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 88.7% (88.7% domestic bond, 0.0% foreign bond and 10.9% convertible bond). NexPoint Credit Catalyst Z has 0.0% of the portfolio in cash.
Assets Under Management
The fund has $25 million in total assets, which is below the $663 million average for the Nontraditional Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
NEDZX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The NexPoint Credit Catalyst Z expense ratio is high compared to funds in the Nontraditional Bond category. NexPoint Credit Catalyst Z has an expense ratio of 1.40%, which is 1% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. A portfolio turnover rate cannot be currently calculated for NexPoint Credit Catalyst Z. By way of comparison, the average portfolio turnover is 304% for the Nontraditional Bond category.
Recently, in the month of July 2026, NexPoint Credit Catalyst Z returned 0.6%, which earned it a grade of A, as the Nontraditional Bond category had an average return of -0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
NexPoint Credit Catalyst Z has a trailing yield of 3.59%, which is below the 4.94% category average. The fund normally distributes its income quarterly and its capital gains quarterly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
NexPoint Credit Catalyst Z Grades
Year to date, the fund has returned -0.7%, 2.0 percentage points worse than the category, which translates into a grade of F. The fund has returned 1.0% over the past year (grade of F).
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NEDZX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| NEDZX Return (NAV) | 0.6% | 0.6% | 1.0% | na | na | na |
| NEDZX Grade | A | C | F | na | na | na |
| +/- Category | 0.8% | 0.2% | -3.4% | na | na | na |
| Nontraditional Bond Avg | -0.2% | 0.4% | 4.4% | 5.6% | 2.5% | 3.1% |
| NEDZX Tax Cost Ratio | na | na | 1.8% | na | na | na |
NEDZX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| NEDZX Return (NAV) | -0.7% | na | na | na | na | na | na | na | na | na | na |
| NEDZX Grade | F | na | na | na | na | na | na | na | na | na | na |
| +/- Category | -2.0% | na | na | na | na | na | na | na | na | na | na |
| Nontraditional Bond Avg | 1.2% | 6.8% | 5.4% | 6.5% | -6.1% | 1.3% | 5.4% | 6.5% | -0.8% | 4.1% | 6.4% |
| Risk Measures | |
| Standard Deviation: | na |
| Total Risk Index: | na |
| Category Risk Index: | na |
| Category Risk Grade: | |
| Beta: | na |
| R-Squared: | na |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 3.6% |
| Dividend Distribution: | Quarterly |
| Cap Gains Distribution: | Quarterly |
| Total Assets: | $25 Mil |
| Fund Total Assets: | $ 26 Mil |
| Share Class Type: | Other |
| Portfolio Turnover: | na |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 1.1 years | |||
| Average Tenure: 1.1 years | |||
| Managers (Year): Dondero James (2025), Johnson Scott (2025) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 29 |
| % in Top 10 Holdings: | 47.3% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | -1.5% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 1.9% |
| Domestic Bond: | 88.7% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 10.9% |
| Other: | 0.0% |
| Cash: | 0.0% |
Purchase Information
| Fund Family: | NexPoint |
| Phone Number: | 877-665-1287 |
| Website: | www.highlandfunds.com |
| Status: | Open |
| Inception Date: | July 2, 2025 |
| Min. Initial Purchase: | $2,500 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 1.40% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.42% |
| Share Class: | NexPoint Credit Catalyst A |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 0 |
