The Hyperion -R- Total Return Fund, Inc. Dividend Declaration June 17, 2005.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- The Board of Directors of the Hyperion Total Return Fund, Inc. (the "Fund") (NYSE NYSE See: New York Stock Exchange : HTR HTR Heater HTR High Temperature Reactor HTR Hard-To-Reach HTR Hunter: the Reckoning (White-Wolf game) HTR Hemolytic Transfusion Reaction (blood transfusion) HTR Hellenic Technology of Robotics ) declared a new monthly dividend of $0.060 per share, payable on July 28, 2005 to shareholders of record on July 19, 2005. This represents a decline from $0.075 cents a share. The ex-dividend date Ex-dividend date The first day of trading when the buyer of a stock is no longer entitled to the most recently announced dividend payment ( i.e. the trade will settle the day after the record date, too late for the buyer to appear on the shareholder record and receive the dividend. is July 15, 2005. Lower reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. yields due to persistently low interest rates, coupled with continued high levels of prepayments on mortgage backed securities have lowered the income earned by the "Fund." Based on the NYSE closing price of $10.16 on June 16, 2005, the Fund's yield will be 7.09%, which is 3.25% higher than the yield of the 5-year U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. Note. As of May 31, 2005, the Fund's average duration, as measured on a net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. basis, was 2.6 years; the average duration of total assets was 2.1 years; and leverage equaled 32.7%. Eighty percent of interest rate risk due to leverage is hedged using interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. and floating rate securities that have a weighted average life of 3.4 years.
Portfolio of Investments as of May 31, 2005
Sector Allocation as a Percentage of Total Assets
Non-Agency Residential Mortgage-Backed Securities ("MBS") 10.8%
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Commercial MBS 17.4%
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Asset-Backed Securities 20.1%
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Agency MBS Pass-throughs 38.9%
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Agency Collateralized Mortgage Obligations 2.1%
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Investment Grade Corporate Securities 1.0%
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U.S. Treasury and Agency Securities 8.5%
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Other 1.2%
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Credit Allocation as a Percentage of Total Assets
U. S. Government / Agency and AAA Rated 56.3%
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AA Rated 3.2%
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A Rated 7.5%
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BBB Rated 12.8%
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Below Investment Grade 20.2%
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The Fund's investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and , Hyperion Capital Management, Inc. ("Hyperion Capital"), is a leading fixed income manager. As of April 30, 2005, Hyperion Capital, with its affiliate, managed $13 billion in client assets. Additional information on the Fund's assets and performance is available by contacting Hyperion Capital Shareholder Services at the following: |
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