highlighting/annotating PDF files?

I'm researching Kobo ereaders and making some progress. However, I get stuck when I try to find out whether I'll be able to highlight and/or annotate PDF files. Both functions would be better than one or the other.

Does the software that comes with the Kobo, e.g. the Aura HD, allow one to do this? And if not, would a 3rd party program like Calibre be the thing?

Thanks for any help you can provide. I've been searching this site and the web in general and have not been able to find an answer.

Paul