May 4, 2007—The Board of Directors of the Hyperion Total Return Fund, Inc. (the “Fund”) (NYSE: HTR) has declared a monthly dividend of $0.060 per share, payable on May 31, 2007 to shareholders of record on May 15, 2007. The ex-dividend date is May 11, 2007. Based on the NYSE closing price of $9.08 on May 3, 2007, the yield of the Fund was 7.93% which was 3.34% higher than the yield of the 5-year U.S. Treasury Note. Based on the net asset value per share of $8.91 on May 3, 2007, the yield of the Fund was 8.08%. As of April 30, 2007, the Fund’s average duration, as measured on a net assets basis, was 4.4 years; the average duration of total assets was 2.8 years; and leverage equaled 27.6%. 104% 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 3.1 years.
Portfolio of Investments as of April 30, 2007
Sector Allocation as a Percentage of Total Assets
| Non-Agency Residential Mortgage-Backed Securities ("MBS") |
12.0% |
| Commercial MBS |
31.7% |
| Asset-Backed Securities |
16.3% |
| Agency MBS Pass-throughs |
28.4% |
| Agency Collateralized Mortgage Obligations |
1.4% |
| U.S. Treasury and Agency Securities |
2.7% |
| Corporates |
6.7% |
| Other |
0.8% |
Credit Allocation as a Percentage of Total Assets
| U.S. Government / Agency and AAA Rated |
38.6% |
| AA Rated |
1.9% |
| A Rated |
8.3% |
| BBB Rated |
23.2% |
| Below Investment Grade |
28.0% |
The Hyperion Total Return Fund, Inc. is managed by Hyperion Brookfield Asset Management, Inc, a
registered investment advisor located in New York City. The firm was founded in 1989 to provide relative
value driven fixed income investment strategies, such as core fixed income, high yield, and specialized
MBS. Hyperion Brookfield manages in excess of $21 billion for a client base including pension funds,
financial institutions, mutual funds, insurance companies, REITs and foundations. Hyperion Brookfield is
a subsidiary of Brookfield Asset Management Inc, a global asset manager focused on property, power
and other infrastructure assets with approximately US$70 billion of assets under management. For more
information, please contact:
The Hyperion Total Return Fund, Inc.
Three World Financial Center 200 Vesey Street, 10th Floor
New York, NY 10281-1010
1-800 HYPERION