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Shares			Value ($)
	U.S. Equity — 49.5%
	Communication Services — 26.5%
	169,531	MidWave Wireless, Inc. (fka Terrestar Corp.) (a)(b)(c)(d)(e)		76,166,887
	189,945	Telesat (e)(f)		3,122,696

				79,289,583

	Energy — 1.2%
	357,484	Talos Energy, Inc. (e)(f)		3,471,170

	Financials — 0.3%
	100,000	TXSE Group, Inc. (a)(b)(e)		1,000,000

	Healthcare — 0.3%
	232,800	Heron Therapeutics, Inc. (e)(f)		356,184
	17,200	Patterson (f)		530,792

				886,976

	Materials — 1.2%
	730,484	MPM Holdings, Inc. (d)(e)		3,652,420

				3,652,420

	Real Estate — 20.0%
	56,000	Alexandria Real Estate Equities, REIT (f)		5,462,800
	8,055	City Office, REIT (f)		44,464
	1,147,062	GAF REIT (a)(b)(c)(e)		13,291,922
	606,269	NexPoint Diversified Real Estate Trust, REIT (c)(f)		3,698,241
	901,385	NexPoint Real Estate Finance, Inc., REIT (c)(f)		14,142,736
	184,813	NexPoint Residential Trust, Inc., REIT (c)(f)		7,715,943
	417,500	Seritage Growth Properties (e)(f)		1,720,100
	280,000	United Development Funding IV, REIT, REIT (a)(b)		1,214,300
	875,255	Whitestone, REIT, Class B (f)		12,402,363

				59,692,869

		Total U.S. Equity (Cost $128,075,637)		147,993,018


Principal Amount ($)
	U.S. Senior Loans (g) — 12.5%
	Communication Services — 8.7%
	26,072,721	MidWave Wireless, Inc. (fka Terrestar Corp.) Term Loan A, 1st Lien, cash/0% PIK 02/27/28 (a)(b)(c)		25,986,681

	Real Estate — 3.8%
	5,000,000	NexPoint SFR Operating Partnership L.P., 05/24/27 (a)(b)(c)		4,907,500
	8,500,000	NHT Operating Partnership LLC Convertible Promissory Note, 02/22/27 (a)(b)(c)		6,438,750

				11,346,250

		Total U.S. Senior Loans (Cost $39,565,736)		37,332,931


Shares
	Non-U.S. Equity — 12.2%
	Communication Services — 0.0%
	77,866	Grupo Clarin, Class B (e)(h)		167,956


Shares			Value ($)
	Non-U.S. Equity (continued)
	Consumer Discretionary — 1.7%
	3,000	MercadoLibre, Inc. (e)(f)(h)		5,101,320

	Energy — 3.9%
	65,800	Targa Resources (f)(h)		11,745,300
	121	Transocean (e)(f)(h)		454

				11,745,754

	Financials — 0.1%
	24,300	Grupo Supervielle ADR (f)(h)		367,173
	3,995	StoneCo, Class A (e)(f)(h)		31,840

				399,013

	Healthcare — 0.0%
	10,445	HLS Therapeutics, Inc. (e)(h)		28,672

	Industrials — 0.4%
	60,593	GL Events (h)		1,154,487

	Utilities — 6.1%
	202,250	Central Puerto ADR (f)(h)		2,930,602
	67,700	Pampa Energia ADR (e)(f)(h)		5,953,538
	66,500	Vistra Corp. (f)(h)		9,168,355

				18,052,495

		Total Non-U.S. Equity (Cost $13,858,406)		36,649,697

	U.S. Master Limited Partnerships — 9.2%
	Energy — 9.2%
	1,127,440	Energy Transfer L.P. (f)		22,086,550
	139,050	Western Midstream Partners L.P. (f)		5,343,691

		Total U.S. Master Limited Partnerships (Cost $21,741,958)		27,430,241

	U.S. Registered Investment Companies — 6.6%
	334,005	Highland Opportunities and Income Fund (c)(f)		1,733,486
	1,032,870	NexPoint Event Driven Fund, Class Z (c)		16,959,729
	61,645	NexPoint Merger Arbitrage Fund, Class Z (c)		1,217,490

		Total U.S. Registered Investment Companies (Cost $20,736,908)		19,910,705

	U.S. LLC Interest — 6.5%
	Real Estate — 6.5%
	349	GAF REIT Sub II, LLC (a)(b)(c)(e)		8,453,724
	156,528	GAF REIT Sub III, LLC (a)(b)(c)(e)		10,995,981

		Total U.S. LLC Interest (Cost $20,386,562)		19,449,705


Principal Amount ($)			Value ($)
	Non-U.S. Sovereign Bonds — 6.1%
		Argentine Republic Government International Bond
	90,699	1.00%, (05/15/2024) (h)		73,875
	29,000,000	3.50%, (05/15/2024)(h)(i)		18,173,381

		Total Non-U.S. Sovereign Bonds (Cost $17,130,757)		18,247,256


Shares
	U.S. Preferred Stock — 3.4%
	Financials — 0.9%
	25,000	First Horizon (f)		627,500
	89,000	Western Alliance Bancorp (f)		1,973,130

				2,600,630

	Healthcare — 1.3%
	202,684	Apnimed, Series C-1 (a)(b)(e)(j)		2,519,362
	108,098	Apnimed, Series C-2 (a)(b)(e)(j)		1,432,298

				3,951,660

	Real Estate — 1.2%
	239,774	Braemar Hotels & Resorts, Inc. (e)(j)		3,296,893
	13,831	NexPoint Diversified Real Estate Trust, REIT (c)(f)		226,690

				3,523,583

		Total U.S. Preferred Stock (Cost $7,972,655)		10,075,873

	Non-U.S. Registered Investment Company — 1.0%
	10,000	BB Votorantim Highland Infrastructure, LLC (a)(b)(c)		2,957,187

		Total Non-U.S. Registered Investment Company (Cost $4,574,500)		2,957,187

	Non-U.S. Master Limited Partnership — 0.8%
	Energy — 0.8%
	78,631	Enterprise Products Partners L.P. (f)(h)		2,465,868

		Total Non-U.S. Master Limited Partnership (Cost $2,151,846)		2,465,868


Principal Amount ($)
	U.S. Corporate Bonds & Notes — 0.2%
	Communication Services — 0.2%
		iHeartCommunications, Inc.
	304,583	9.13%, 05/01/29 (f)		264,324
	467,594	10.88%, 05/01/30 (f)		330,944

		Total U.S. Corporate Bonds & Notes (Cost $690,945)		595,268


Principal Amount ($)			Value ($)
	U.S. Asset-Backed Security — 0.1%
	250,000	CFCRE Commercial Mortgage Trust, Series 2017-C8, Class D 3.00%, (05/15/2024)		203,484

		Total U.S. Asset-Backed Security (Cost $225,971)		203,484


Units
	U.S. Rights — 0.0%
	Healthcare — 0.0%
	2,156,000	Paratek Pharmaceuticals (a)(b)(e)		172,480

		Total U.S. Rights (Cost $–)		172,480


Principal Amount ($)
	U.S. Repurchase Agreement — 0.0%
	12	Daiwa Capital Markets 4.470%, dated 12/31/2024 to be repurchased on 01/02/2025, repurchase price $12 (collateralized by U.S. Government obligations, ranging in par value $0 - $4, 0.000% - 7.500%, 03/27/2025 - 01/01/2055; with total market value $12)(k)(l)		12

		Total U.S. Repurchase Agreement (Cost $12)		12


Shares
	U.S. Cash Equivalent — 0.1%
	Money Market Fund(m) — 0.1%
	263,358	Dreyfus Treasury Obligations Cash Management, Institutional Shares 4.340%		263,358

		Total U.S. Cash Equivalent (Cost $263,358)		263,358

	Total Investments — 108.2%			323,747,083

	(Cost $277,375,251)
	Securities Sold Short — (4.0)%
	U.S. Exchange-Traded Fund — (0.7)%
	(9,610)	iShares Russell 2000 ETF		(2,123,425	)

		Total U.S. Exchange-Traded Fund (Proceeds $2,000,747)		(2,123,425	)


Shares			Value ($)
	U.S. Equity — (3.3)%
	Communication Services — (3.0)%
	(9,952)	Netflix, Inc. (n)		(8,870,417	)

	Consumer Staples — (0.3)%
	(4,000)	WD-40 Co.		(970,720	)

		Total U.S. Equity (Proceeds $1,665,944)		(9,841,137	)

		Total Securities Sold Short- (4.0)% (Proceeds $3,666,691)		(11,964,562	)

	Other Assets & Liabilities, Net - (4.2)%(o)			(12,518,351	)

	Net Assets - 100.0%			299,264,170

(a)

Securities with a total aggregate value of $155,537,072, or 52.0% 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, as well as a list of unobservable inputs used in the valuation of these instruments.

(b)

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 $155,537,072, or 52.0% of net assets, were fair valued under the Fund’s valuation procedures as of December 31, 2024. Please see Notes to Investment Portfolio.

(c)	Affiliated issuer. Assets with a total aggregate fair value of $194,892,947, or 65.1% of net assets, were affiliated with the Fund as of December 31, 2024.

(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
MidWave Wireless, Inc. (fka Terrestar Corp.)		U.S. Equity		11/14/2014	$	48,015,561	$	76,166,887		25.5	%
MPM Holdings, Inc.		U.S. Equity		5/15/2019	$	—	$	3,652,420		1.2	%

(e)	Non-income producing security.

(f)	All or part of this security is pledged as collateral for short sales. The fair value of the securities pledged as collateral was $105,903,990.

(g)

Senior loans (also called bank loans, leveraged loans, or floating rate loans) in which the Fund invests generally pay interest at rates which are periodically determined by reference to a base lending rate plus a spread (unless otherwise identified, all senior loans carry a variable rate of interest). These base lending rates are generally (i) the Prime Rate offered by one or more major United States banks, (ii) the lending rate offered by one or more European banks such as the Secured Overnight Financing Rate (“SOFR”) or (iii) the Certificate of Deposit rate. As of December 31, 2024, the SOFR 1 Month and SOFR 3 Month rates were 4.53% and 4.69%, respectively. Senior loans, while exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”), contain certain restrictions on resale and cannot be sold publicly. Senior secured floating rate loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity maybe substantially less than the stated maturity shown.

(h)

As described in the Fund’s prospectus, a company is considered to be a non-U.S. issuer if the company’s securities principally trade on a market outside of the United States, the company derives a majority of its revenues or profits outside of the United States, the company is not organized in the United States, or the company is significantly exposed to the economic fortunes and risks of regions outside the United States.

(i)	Step Coupon Security. Coupon rate will either increase (step-up bond) or decrease (step-down bond) at regular intervals until maturity. Interest rate shown reflects the rate currently in effect.

(j)	Perpetual security with no stated maturity date.

(k)	Tri-Party Repurchase Agreement.

(l)	This security was purchased with cash collateral held from securities on loan. The total value of such securities as of December 31, 2024 was $12.

(m)	Rate reported is 7 day effective yield.

(n)	No dividend payable on security sold short.

(o)	As of December 31, 2024, $11,959,391 in cash was segregated or on deposit with the brokers to cover investments sold short and is included in “Other Assets & Liabilities, Net”.

GLOSSARY: (abbreviations that may be used in the preceding statements) (unaudited)

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 a closed-end management investment company. It comprises two portfolios (collectively the “Funds”) that are currently being offered. This report covers information for the period ended December 31, 2024 for Highland Global Allocation Fund (the “Fund”). NexPoint Climate Tech Fund is reported separately.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated NexPoint 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 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 established by NexPoint and approved by the Fund’s 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 Board or its designee in good faith in accordance with procedures approved by the Board, taking into account factors reasonably determined to be relevant including: (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 Board or its designee 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 Fund has performed an analysis of all existing investments and derivative instruments to determine the significance and character of inputs to their 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

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.

The fair value of the Fund’s loans, bonds and asset-backed securities are generally based on quotes received from brokers or independent pricing services. Loans, bonds and asset-backed securities with quotes that are based on actual trades with a sufficient level of activity on or near the measurement date are classified as Level 2 assets. Senior loans, bonds and asset-backed securities that are priced using quotes derived from implied values, indicative bids, or a limited number of actual trades are classified as Level 3 assets because the inputs used by the brokers and pricing services to derive the values are not readily observable.

The fair value of the Fund’s common stocks, exchange traded funds, rights and warrants 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. Exchange-traded options are valued based on the last trade price on the primary exchange on which they trade. If an option does not trade, the mid-price, which is the mean of the bid and ask price, is utilized to value the option. 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 less liquid than publicly traded securities.

Under Section 2(a)(3) of the Investment Company Act of 1940, as amended, a portfolio company is defined as “affiliated” if a fund owns five percent or more of its outstanding voting securities or if the portfolio company is under common control. The table below shows affiliated issuers of the Fund as of December 31, 2024:


As of December 31, 2024		Highland Global Allocation Fund


Issuer	Shares/ Principal Amount ($) September 30, 2024		Beginning Value as of September 30, 2024 $		Purchases at Cost $		Proceeds from Sales $		Distribution to Return of Capital $			Net Amortization (Accretion) of Premium/ (Discount) $		Net Realized Gain (Loss) on Sales of Affiliated Issuers $		Change in Unrealized Appreciation (Depreciation) $			Ending Value as of December 31, 2024 $		Shares/ Principal Amount ($) December 31, 2024		Affiliated Income $
Majority Owned, Not Consolidated
None
Other Affiliates
MidWave Wireless, Inc. (fka Terrestar Corp.) (U.S. Equity)		169,531		53,336,148		—		—		—			—		—		22,830,739			76,166,887		169,531		—
GAF REIT (U.S. Equity)		1,147,062		13,297,267		—		—		—			—		—		(5,345	)		13,291,922		1,147,062		—
NexPoint Diversified Real Estate Trust (U.S. Equity)		596,890		3,730,563		62,501		—		—			—		—		(94,823	)		3,698,241		606,269		(67,256	)
NexPoint Real Estate Finance (U.S. Equity)		901,385		14,088,653		—		—		(164,908	)		—		—		218,991			14,142,736		901,385		(95,671	)
NexPoint Residential Trust, Inc. (U.S. Equity)		184,813		8,133,620		—		—		—			—		—		(417,677	)		7,715,943		184,813		163,418
MidWave Wireless, Inc. (fka Terrestar Corp.) (U.S. Senior Loan)		25,288,552		25,255,677		784,168		—		—			444		—		(53,608	)		25,986,681		26,072,721		2,312,033
NexPoint SFR Operating Partnership, LP (U.S. Senior Loan)		5,000,000		4,907,500		—		—		—			—		—		—			4,907,500		5,000,000		281,250
NHT Operating Partnership LLC Secured Promissory Note (U.S. Senior Loan)		8,500,000		6,438,750		—		—		—			—		—		—			6,438,750		8,500,000		350,625
Highland Opportunities and Income Fund (U.S. Registered Investment Company)		334,005		2,047,450		—		—		—			—		—		(313,964	)		1,733,486		334,005		12,726
NexPoint Event Driven Fund (U.S. Registered Investment Company)		1,032,870		16,908,086		—		—		—			—		—		51,643			16,959,729		1,032,870		94,923
NexPoint Merger Arbitrage Fund (U.S. Registered Investment Company)		60,871		1,206,457		15,240		—		—			—		—		(4,207	)		1,217,490		61,645		59,985
GAF REIT Sub II, LLC (U.S. LLC Interest)		349		8,449,409		—		—		—			—		—		4,315			8,453,724		349		—
GAF REIT Sub III, LLC (U.S. LLC Interest)		156,528		11,055,472		—		—		—			—		—		(59,491	)		10,995,981		156,528		1,500,000
NexPoint Diversified Real Estate Trust (U.S. Preferred Stock)		13,831		213,891		—		—		—			—		—		12,799			226,690		13,831		—
BB Votorantim Highland Infrastructure LLC (Non-U.S. Registered Investment Company)		10,000		3,271,300		—		—		—			—		—		(314,113	)		2,957,187		10,000		—
Other Controlled
None

Total		43,396,687		172,340,243		861,909		—		(164,908	)		444		—		21,855,259			194,892,947		44,191,009		4,612,033