Message #3 From:
NewsBot Date: September 1, 2006 11:15:00 AM
HSM News The Hyperion(R) Strategic Mortgage Income Fund, Inc. Dividend Declaration, September 1, 2006
NEW YORK--(BUSINESS WIRE)--Sept. 1, 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 September 28, 2006 to shareholders of record on September 12, 2006. The ex-dividend date is September 8, 2006. Based on the NYSE closing price of $13.37 on August 31, 2006, the Fund's yield was 8.08%. Based on the net asset value per share of $14.02 on August 31, 2006, the yield of the Trust was 7.70%. As of August 31, 2006, the portfolio's average duration, as measured on a net assets basis, was 4.4 years; the average duration of total assets was 3.0 years; and leverage equaled 28.7%. One Hundred Two 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 4.8 years.
Portfolio of Investments as of August 31, 2006
Sector Allocation as a Percentage of Total Assets
------------------------------------------------------------------
Non-Agency Residential Mortgage-Backed Securities ("MBS") 22.3%
------------------------------------------------------------------
Commercial MBS 16.6%
------------------------------------------------------------------
Agency MBS Pass-throughs 39.0%
------------------------------------------------------------------
Asset-Backed Securities 9.1%
------------------------------------------------------------------
U.S. Treasury and Agency Securities 13.0%
------------------------------------------------------------------
Credit Allocation as a Percentage of Total Assets
--------------------------------------------------------------------
U. S. Government / Agency and AAA Rated 54.8%
--------------------------------------------------------------------
AA Rated 4.1%
--------------------------------------------------------------------
A Rated 8.1%
--------------------------------------------------------------------
BBB Rated 14.3%
--------------------------------------------------------------------
Below Investment Grade 18.7%
--------------------------------------------------------------------
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 July 31, 2006, Hyperion Capital managed $20.0 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
