Morgan Asset Management, Inc. Announces Proposed Transaction with Hyperion Brookfield Asset Management, Inc.
April 21 2008 - 6:28PM
Business Wire
Morgan Asset Management, Inc. (�MAM�), the investment adviser for
RMK Advantage Income Fund, Inc. (NYSE: RMA), RMK High Income Fund,
Inc. (NYSE: RMH), RMK Multi-Sector High Income Fund, Inc. (NYSE:
RHY) and RMK Strategic Income Fund, Inc. (NYSE: RSF) (each a �Fund�
and collectively, the �Funds�), announced today that on April 18,
2008, it entered into an agreement with Hyperion Brookfield Asset
Management, Inc. (�HBAM�) under which HBAM, an investment adviser
that is registered with the Securities and Exchange Commission,
would be supported by MAM to become the new investment adviser of
the Funds and of Regions Morgan Keegan Select Short Term Bond Fund,
Regions Morgan Keegan Select Intermediate Bond Fund and Regions
Morgan Keegan Select High Income Fund, three open-end funds also
managed by MAM (the �Transaction�). MAM represented to the Fund
Board that MAM believes that the proposed Transaction is in the
best interest of fund shareholders. The agreement contemplates
that, following the approval of new investment advisory agreements
by shareholders of the Funds, HBAM would become the investment
adviser for the Funds, and that MAM would no longer serve as the
Funds� investment adviser after the Transaction. The agreement also
contemplates that new Boards of Directors of the Funds, which would
consist of individuals proposed by HBAM, would be nominated by the
current Boards and elected by shareholders of the Funds, and that
the current members of the Funds� Boards of Directors would no
longer serve as directors following shareholder approval of HBAM as
the Funds� investment adviser, the election of the new Boards of
Directors and the consummation of the Transaction. In anticipation
of the consummation of the Transaction, the current Boards of
Directors of the Funds have unanimously approved new investment
advisory agreements with HBAM and the nomination of five new
directors of the Funds. The appointment of HBAM as investment
adviser of any of the Funds and the election of that Fund�s new
Board of Directors must be approved by the shareholders of that
Fund. If the new investment advisory agreements are approved and
the Transaction is consummated, the existing investment advisory
agreements between the Funds and MAM will be terminated. Joint
Special and Annual Shareholder Meetings of the Funds are scheduled
for July 11, 2008, to vote on the proposed new investment advisory
agreements and the election of directors, respectively. Although
there is no assurance that the Transaction will be completed, as of
this date it is anticipated that, subject to shareholder approval
of the proposed new investment advisory agreements, the election of
the new directors, and the completion of certain other terms and
conditions, the Transaction will close on or about July 14, 2008.
Additional information about the proposed new investment advisory
agreements and nominees will be sent to shareholders of the Funds
as part of proxy solicitation materials. About Hyperion Brookfield
Asset Management, Inc.: Formed as a registered investment adviser
in 1989, HBAM manages more than $21 billion in fixed income assets
for institutional and retail investors, such as pension funds,
financial institutions, insurance companies, and foundations.
HBAM�s expertise is centered on providing relative value driven
fixed income investment strategies, such as core fixed income, high
yield, and specialized mortgage-backed securities and asset-backed
securities markets. HBAM currently serves as an independent
valuation consultant for the Funds. About Morgan Asset Management:
Morgan Asset Management, Inc. is the investment advisory arm of
Regions Financial Corporation (NYSE: RF). Morgan Asset Management
is the investment adviser to Regions Morgan Keegan Trust, Regions
Morgan Keegan Select Funds, Morgan Keegan Select Fund, Inc., RMK
Advantage Income Fund, Inc., RMK High Income Fund, Inc., RMK
Multi-Sector High Income Fund, Inc. and RMK Strategic Income Fund,
Inc. With locations throughout the South, Morgan Asset Management,
an affiliate of Morgan Keegan & Co. Inc., manages more than $28
billion for institutions and high net worth individuals. Additional
information about Morgan Asset Management, Morgan Keegan and
Regions�a member of the S&P 100 Index�can be found at
www.morgankeegan.com and www.regions.com. For Additional
Information: Additional information about the Funds, including the
Funds� annual and semi-annual reports to stockholders, may be
obtained by visiting the Funds� website at www.rmkfunds.com or by
calling 800-564-2188.
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