Message #2 From:
NewsBot Date: August 4, 2006 08:26:00 AM
HSM News The Hyperion(R) Strategic Mortgage Income Fund, Inc. Dividend Declaration August 4, 2006
NEW YORK--(BUSINESS WIRE)--Aug. 4, 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 August 31, 2006 to shareholders of record on August 15, 2006. The ex-dividend date is August 11, 2006. Based on the NYSE closing price of $13.07 on August 3, 2006, the Fund's yield was 8.26%. Based on the net asset value per share of $13.90 on August 3, 2006, the yield of the Trust was 7.77%. As of July 31, 2006, the portfolio's average duration, as measured on a net assets basis, was 4.6 years; the average duration of total assets was 3.1 years; and leverage equaled 28.8%. One Hundred Five 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 4.9 years.
Portfolio of Investments as of July 31, 2006
Sector Allocation as a Percentage of Total Assets
Non-Agency Residential Mortgage-Backed Securities
("MBS") 22.5%
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Commercial MBS 16.5%
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Agency MBS Pass-throughs 39.0%
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Asset-Backed Securities 9.1%
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U.S. Treasury and Agency Securities 12.9%
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Credit Allocation as a Percentage of Total Assets
U. S. Government / Agency and AAA Rated 54.7%
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AA Rated 4.1%
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A Rated 8.2%
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BBB Rated 14.2%
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Below Investment Grade 18.8%
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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 over $50 billion for institutional and retail clients, as well as its own principal investments. As of June 30, 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
