On April 18, 2008 Morgan Asset Management, Inc., the investment advisor for RMK Advantage Income Fund, Inc., RMK High Income Fund, Inc., RMK Multi-Sector High Income Fund, Inc. and RMK Strategic Income Fund, Inc., entered into an agreement with Hyperion Brookfield Asset Management, Inc. under which Hyperion became the new investment advisor for the Funds. In addition, it was announced that Hyperion would also become the advisor of three Regions Morgan Keegan open-end funds, the Select Short Term Bond Fund, the Select Intermediate Bond Fund and the Select High Income Fund.
These Morgan Keegan funds have seen dramatic declines in value over the past year. Many investors have suffered significant losses due to the funds’ over-exposure to subprime investments.
It remains to be seen how these funds (and their performance) will be effected by the change in investment advisor. For many investors, this change has come many months too late.