Message #1 From:
NewsBot Date: July 7, 2006 10:58:00 AM
HSM News The Hyperion(R) Strategic Mortgage Income Fund, Inc. Dividend Declaration July 7, 2006
NEW YORK--(BUSINESS WIRE)--July 7, 2006--The Board of Directors of the Hyperion Strategic Mortgage Income Fund, Inc. (the "Fund") (NYSE: HSM) declared a monthly dividend of $0.090 per share, payable on July 27, 2006 to shareholders of record on July 18, 2006. The ex-dividend date is July 14, 2006. Based on the NYSE closing price of $12.79 on July 6, 2006, the Fund's yield was 8.44%. Based on the net asset value per share of $13.72 on July 6, 2006, the yield of the Trust was 7.87%. As of June 30, 2006, the portfolio's average duration, as measured on a net assets basis, was 4.5 years; the average duration of total assets was 3.0 years; and leverage equaled 29.5%. One Hundred Four percent of interest rate risk due to leverage is hedged using interest rate swaps and floating rate securities that have a weighted average life of 5.1 years.
Portfolio of Investments as of June 30, 2006
Sector Allocation as a Percentage of Total Assets
Non-Agency Residential Mortgage-Backed Securities
("MBS") 22.4%
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Commercial MBS 16.4%
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Agency MBS Pass-throughs 39.3%
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Asset-Backed Securities 9.1%
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U.S. Treasury and Agency Securities 12.8%
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Credit Allocation as a Percentage of Total Assets
U. S. Government / Agency and AAA Rated 54.9%
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AA Rated 2.0%
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A Rated 8.8%
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BBB Rated 15.7%
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Below Investment Grade 18.6%
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The Fund's investment advisor, Hyperion Brookfield Asset Management, Inc. ("Hyperion Brookfield"), is a wholly owned subsidiary of Brookfield Asset Management, Inc. ("Brookfield") (NYSE: BAM). Brookfield is an asset manager primarily focused on real estate, power, timber, fixed income and equity. Brookfield and its affiliates manage assets totaling approximately $50 billion for institutional and retail clients, as well as its own principal investments. As of May 31, 2006, Hyperion Capital managed $19.6 billion in fixed income client assets. Additional information on the Fund's assets and performance is available by contacting Hyperion Brookfield Shareholder Services at the following:
The Hyperion Strategic Mortgage Income Fund, Inc.
Three World Financial Center 200 Vesey Street, 10th Floor
New York, NY 10281-1010
Telephone: 1-800 HYPERION
