Definitive Materials Filed by Investment Companies. (497)

HIGHLAND FUNDS I

Highland Merger Arbitrage Fund (the “Fund”)

Supplement dated May 18, 2020 to the Fund’s Summary Prospectus and Statutory Prospectus, dated October 31, 2019, as supplemented from time to time (together, the “Prospectuses”).

This supplement provides new and additional information beyond that contained in the Prospectuses and should be read in conjunction with the Prospectuses.

The Fund’s after-tax returns have been revised. Accordingly, the Prospectuses are hereby amended and supplemented as follows:

1. In the “Performance” section of the Fund’s Summary Prospectus, and the corresponding section of the Statutory Prospectus, the “Average Annual Total Returns” table is hereby deleted and replaced with the following:

Average Annual Total Returns

(For the periods ended December 31, 2018)


	1 Year		Since Inception
Class Z
Return Before Taxes		6.48%		6.67%
Return After Taxes on Distributions		-0.34%		4.16%
Return After Taxes on Distributions and Sale of Fund Shares		3.97%		4.11%
Return Before Taxes
Class A		0.27%		4.80%
Class C		4.42%		5.62%
Barclays US Aggregate Bond Index (reflects no deduction for fees, expenses or taxes)		0.01%		1.34%