UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07359
HYPERION BROOKFIELD INCOME FUND, INC. (Exact name of registrant as specified in charter) |
THREE WORLD FINANCIAL CENTER, 200 VESEY STREET, 10TH FLOOR NEW YORK, NEW YORK 10281-1010 (Address of principal executive offices) (Zip code) |
JOHN H. DOLAN, PRESIDENT HYPERION BROOKFIELD INCOME FUND, INC. THREE WORLD FINANCIAL CENTER, 200 VESEY STREET, 10TH FLOOR NEW YORK, NEW YORK 10281-1010 (Name and address of agent for service) |
Registrant’s telephone number, including area code: 1 (800) Hyperion
Date of fiscal year end: July 31
Date of reporting period: January 31, 2007
Brookfield
Income
Fund, Inc.
Portfolio Composition (Unaudited)
1
HYPERION BROOKFIELD INCOME FUND, INC. | |||||||||||||||||
Portfolio of Investments – (Unaudited) January 31, 2007 | |||||||||||||||||
Principal | |||||||||||||||||
Interest | Amount | Value | |||||||||||||||
Rate | Maturity | (000s) | (Note 2) | ||||||||||||||
ASSET-BACKED SECURITIES – 7.2% | |||||||||||||||||
First Franklin Mortgage Loan Trust | |||||||||||||||||
Series 2004-FFH2, Class B1*(b) | 8.85 | %† | 06/25/34 | $ | 3,000 | $ | 2,250,000 | ||||||||||
Green Tree Financial Corp. | |||||||||||||||||
Series 1998-04, Class M1 | 6.83 | 03/01/28 | 2,000 | 1,000,000 | |||||||||||||
Series 1998-3, Class M1 | 6.86 | 03/01/30 | 2,000 | 1,020,000 | |||||||||||||
Series 1997-7, Class B1 | 6.99 | 07/15/29 | 1,593 | 270,811 | |||||||||||||
Series 1997-3, Class M1 | 7.53 | 03/15/28 | 2,500 | 1,862,500 | |||||||||||||
Series 1996-9, Class M1 | 7.63 | 08/15/27 | 2,300 | 2,185,000 | |||||||||||||
6,338,311 | |||||||||||||||||
Long Beach Mortgage Loan Trust | |||||||||||||||||
Series 2002-5, Class M4B | 6.00 | 11/25/32 | 1,607 | 642,651 | |||||||||||||
Mid-State Trust | |||||||||||||||||
Series 2004-1, Class B | 8.90 | 08/15/37 | 2,702 | 2,750,051 | |||||||||||||
Sail Net Interest Margin Notes | |||||||||||||||||
Series 2004-BNC2, Class B* | 7.00 | 12/27/34 | 684 | 171,047 | |||||||||||||
Series 2003-5, Class A* | 7.35 | 06/27/33 | 32 | 3,210 | |||||||||||||
Series 2003-3, Class A* | 7.75 | 04/27/33 | 78 | 14,868 | |||||||||||||
189,125 | |||||||||||||||||
Structured Asset Investment Loan Trust | |||||||||||||||||
Series 2004-4, Class B*(c) | 5.00/5.50 | 04/25/34 | 2,858 | 2,212,664 | |||||||||||||
Series 2004-11, Class B*(c) | 5.00/5.50 | 01/25/35 | 3,999 | 3,511,522 | |||||||||||||
Series 2003-BC13, Class B*(c)(a) | 6.00/5.50 | 11/25/33 | 325 | 258,464 | |||||||||||||
Series 2004-3, Class B*(c) | 6.00/5.50 | 04/25/34 | 2,500 | 1,954,250 | |||||||||||||
7,936,900 | |||||||||||||||||
Wells Fargo Alternative Loan Trust | |||||||||||||||||
Series 2005-1, Class B5 | 5.50 | 02/25/35 | 316 | 199,837 | |||||||||||||
Series 2005-1, Class B6 | 5.50 | 02/25/35 | 404 | 122,312 | |||||||||||||
322,149 | |||||||||||||||||
Total Asset-Backed Securities (Cost – $24,582,960) | 20,429,187 | ||||||||||||||||
COMMERCIAL MORTGAGE BACKED SECURITIES – 75.6% | |||||||||||||||||
Other Commercial Mortgage Backed Securities – 75.6% | |||||||||||||||||
AAC Group Holding Corp. | 14.29 | 07/09/08 | 5,430 | 5,430,000 | |||||||||||||
Banc America Commercial Mortgage, Inc. | |||||||||||||||||
Series 2004-6, Class A5 | 4.81 | 12/10/42 | 4,000 | @ | 3,825,112 | ||||||||||||
Series 2004-6, Class F* | 5.35 | 12/10/42 | 2,500 | 2,426,775 | |||||||||||||
Series 2006-2, Class J | 5.48 | 05/10/45 | 882 | 766,261 | |||||||||||||
Series 2006-2, Class K | 5.48 | 05/10/45 | 1,386 | 1,173,220 | |||||||||||||
Series 2006-2, Class L | 5.48 | 05/10/45 | 1,591 | 1,168,156 | |||||||||||||
Series 2006-2, Class M | 5.48 | 05/10/45 | 1,040 | 710,169 | |||||||||||||
Series 2006-2, Class N | 5.48 | 05/10/45 | 2,080 | 1,327,611 | |||||||||||||
Series 2006-2, Class O | 5.48 | 05/10/45 | 2,035 | 1,197,656 | |||||||||||||
Series 2006-2, Class P | 5.48 | 05/10/45 | 11,190 | 3,952,719 | |||||||||||||
Series 2002-PB2, Class K* | 6.29 | 06/11/35 | 2,000 | 2,030,040 | |||||||||||||
18,577,719 | |||||||||||||||||
2
HYPERION BROOKFIELD INCOME FUND, INC. | ||||||||||||||||
Portfolio of Investments – (Unaudited) January 31, 2007 | ||||||||||||||||
Principal | ||||||||||||||||
Interest | Amount | Value | ||||||||||||||
Rate | Maturity | (000s) | (Note 2) | |||||||||||||
COMMERCIAL MORTGAGE BACKED SECURITIES (continued) | ||||||||||||||||
Bear Stearns Commercial Mortgage Securities | ||||||||||||||||
Series 2005-PWR9, Class L* | 4.66 | % | 09/19/42 | $ | 5,000 | $ | 3,756,185 | |||||||||
Series 2004-ESA, Class A3* | 4.74 | 05/14/16 | 3,500 | @ | 3,451,357 | |||||||||||
Series 2004-T16, Class A6 | 4.75 | 02/13/46 | 5,300 | @ | 5,058,484 | |||||||||||
Series 2005-T18, Class A4 | 4.93 | 02/13/42 | 11,000 | 10,597,631 | ||||||||||||
Series 2006-PWR13, Class J* | 5.26 | 09/11/41 | 2,545 | 2,200,051 | ||||||||||||
Series 2006-PWR13, Class N* | 5.26 | 09/11/41 | 1,297 | 738,661 | ||||||||||||
Series 2006-PWR13, Class K | 5.26 | 09/11/41 | 399 | 332,900 | ||||||||||||
Series 2006-PWR13, Class L | 5.26 | 09/11/41 | 2,663 | 1,839,675 | ||||||||||||
Series 2006-PWR13, Class M* | 5.26 | 09/11/41 | 2,175 | 1,343,233 | ||||||||||||
Series 2006-PWR13, Class O | 5.26 | 09/11/41 | 2,172 | 1,139,945 | ||||||||||||
Series 2006-PWR13, Class P* | 5.26 | 09/11/41 | 10,858 | 3,433,709 | ||||||||||||
Series 2004-PWR6, Class F* | 5.44 | † | 11/11/41 | 2,250 | 2,188,895 | |||||||||||
Series 2004-PWR6, Class G* | 5.47 | † | 11/11/41 | 1,000 | 967,064 | |||||||||||
Series 2004-PWR5, Class F* | 5.48 | † | 07/11/42 | 3,500 | 3,426,889 | |||||||||||
Series 2005-PWR10, Class K* | 5.63 | 12/11/40 | 6,113 | 5,754,295 | ||||||||||||
Series 1999-C1, Class J* | 5.64 | 02/14/31 | 2,390 | 199,089 | ||||||||||||
Series 1999-C1, Class K*(d) | 5.64 | 02/14/31 | 1,502 | 3,755 | ||||||||||||
Series 2006-PWR13, Class H* | 6.03 | 09/11/41 | 1,715 | 1,707,214 | ||||||||||||
48,139,032 | ||||||||||||||||
Cascades Mezzanine Loan(e) | 9.84 | † | 06/03/08 | 5,500 | 5,500,000 | |||||||||||
CD 2006 CD2 | ||||||||||||||||
Series 2006-CD2, Class K* | 5.09 | 01/11/46 | 1,632 | 1,415,925 | ||||||||||||
Series 2006-CD2, Class L* | 5.09 | 01/15/46 | 1,166 | 964,060 | ||||||||||||
Series 2006-CD6, Class M* | 5.09 | 01/11/46 | 1,980 | 1,456,888 | ||||||||||||
Series 2006-CD2, Class J* | 5.65 | 01/11/46 | 3,300 | 3,149,896 | ||||||||||||
6,986,769 | ||||||||||||||||
Citigroup/ Deutsche Bank Commercial Mortgage Trust | ||||||||||||||||
Series 2005-CD1, Class G* | 5.40 | 07/15/44 | 5,000 | 4,819,395 | ||||||||||||
Credit Suisse First Boston Mortgage Securities Corp. | ||||||||||||||||
Series 2003-C3, Class J* | 4.23 | 05/15/38 | 1,200 | 1,110,992 | ||||||||||||
Series 2004-C3, Class J* | 4.78 | 07/15/36 | 275 | 247,469 | ||||||||||||
Series 2005-C6, Class J* | 5.23 | 12/15/40 | 5,000 | 4,692,420 | ||||||||||||
Series 2006-C1, Class L* | 5.24 | 02/15/39 | 1,717 | 1,483,845 | ||||||||||||
Series 2006-C1, Class M* | 5.24 | 02/15/39 | 1,200 | 1,011,878 | ||||||||||||
Series 2006-C1, Class N* | 5.24 | 02/15/39 | 1,288 | 949,820 | ||||||||||||
Series 2006-C1, Class O* | 5.24 | 02/15/39 | 429 | 292,560 | ||||||||||||
Series 2006-C1, Class P* | 5.24 | 02/15/39 | 430 | 279,491 | ||||||||||||
Series 2006-C1, Class Q* | 5.24 | 02/15/39 | 858 | 515,537 | ||||||||||||
Series 2006-C1, Class S* | 5.24 | 02/15/39 | 3,861 | 1,287,257 | ||||||||||||
Series 2006-C1, Class K* | 5.74 | 02/15/39 | 2,900 | 2,784,336 | ||||||||||||
14,655,605 | ||||||||||||||||
Credit Suisse Mortgage Capital Certificates | ||||||||||||||||
Series 2006-C4, Class L* | 5.15 | 09/15/39 | 623 | 530,394 | ||||||||||||
Series 2006-C4, Class M* | 5.15 | 09/15/39 | 1,004 | 833,562 | ||||||||||||
Series 2006-C4, Class N* | 5.15 | 09/15/39 | 1,619 | 1,167,550 | ||||||||||||
Series 2006-C4, Class O* | 5.15 | 09/15/39 | 1,597 | 1,035,006 | ||||||||||||
Series 2006-C4, Class P* | 5.15 | 09/15/39 | 2,405 | 1,439,027 |
3
HYPERION BROOKFIELD INCOME FUND, INC. | ||||||||||||||||
Portfolio of Investments – (Unaudited) January 31, 2007 | ||||||||||||||||
Principal | ||||||||||||||||
Interest | Amount | Value | ||||||||||||||
Rate | Maturity | (000s) | (Note 2) | |||||||||||||
COMMERCIAL MORTGAGE BACKED SECURITIES (continued) | ||||||||||||||||
Series 2006-C4, Class Q* | 5.15 | % | 09/15/39 | $ | 3,193 | $ | 1,541,766 | |||||||||
Series 2006-C4, Class S* | 5.15 | 09/15/39 | 15,963 | 5,227,883 | ||||||||||||
11,775,188 | ||||||||||||||||
Greenwich Capital Commercial Funding Corp | ||||||||||||||||
Series 2005-GG5, Class A5 | 5.22 | 04/10/37 | 11,500 | 11,288,550 | ||||||||||||
JP Morgan Commercial Mortgage Finance Corp. | ||||||||||||||||
Series 2003-C1, Class X1* | 0.53 | 01/12/37 | 55,996 | 2,053,609 | ||||||||||||
Series 2003-C1, Class K* | 5.08 | 01/12/37 | 1,625 | 1,537,021 | ||||||||||||
Series 2003-C1, Class L* | 5.08 | 01/12/37 | 1,200 | 979,428 | ||||||||||||
Series 2004-C2, Class A3 | 5.38 | 05/15/41 | 5,000 | 4,929,215 | ||||||||||||
Series 2005-LDP5, Class J* | 5.50 | 12/15/44 | 4,500 | 4,304,169 | ||||||||||||
Series 2004-PNC1, Class A4 | 5.54 | 06/12/41 | 5,000 | @ | 4,987,765 | |||||||||||
Series 1999-C7, Class F* | 6.00 | 10/15/35 | 6,000 | 5,959,518 | ||||||||||||
24,750,725 | ||||||||||||||||
LB-UBS Commercial Mortgage Trust | ||||||||||||||||
Series 2005-C1, Class G* | 5.32 | 02/15/40 | 4,286 | 4,132,938 | ||||||||||||
Series 2002-C2, Class V** | 5.68 | 07/15/32 | 0 | 0 | ||||||||||||
Series 2002-C2, Class M* | 5.68 | 07/15/35 | 900 | 876,816 | ||||||||||||
Series 2002-C2, Class N* | 5.68 | 07/15/35 | 1,450 | 1,351,326 | ||||||||||||
Series 2001-C7, Class J* | 5.87 | 11/15/33 | 3,662 | 3,639,465 | ||||||||||||
Series 2001-C7, Class L* | 5.87 | 11/15/33 | 3,299 | 3,117,829 | ||||||||||||
13,118,374 | ||||||||||||||||
Merrill Lynch Mortgage Trust | ||||||||||||||||
Series 2002-MW1, Class J* | 5.70 | 07/12/34 | 2,295 | 2,253,718 | ||||||||||||
Morgan Stanley Cap I, Inc. | ||||||||||||||||
Series 2005-HQ6, Class A4A | 4.99 | 08/13/42 | 12,000 | 11,586,876 | ||||||||||||
Series 2006-IQ11, Class J* | 5.53 | 10/15/42 | 811 | 650,926 | ||||||||||||
Series 2006-IQ11, Class K* | 5.53 | 10/15/42 | 586 | 449,893 | ||||||||||||
Series 2006-IQ11, Class L* | 5.53 | 10/15/42 | 660 | 424,993 | ||||||||||||
Series 2005-HQ6, Class J* | 5.60 | 08/13/42 | 5,000 | 4,842,145 | ||||||||||||
Series 1998-WF1, Class F* | 7.30 | 03/15/30 | 5,000 | @ | 5,043,100 | |||||||||||
22,997,933 | ||||||||||||||||
Wachovia Bank Commercial Mortgage Trust | ||||||||||||||||
Series 2005-C18, Class J* | 4.70 | 04/15/42 | 1,248 | 1,052,679 | ||||||||||||
Series 2005-C18, Class K* | 4.70 | 04/15/42 | 1,665 | 1,371,279 | ||||||||||||
Series 2005-C18, Class L* | 4.70 | 04/15/42 | 797 | 593,010 | ||||||||||||
Series 2005-C18, Class M* | 4.70 | 04/15/42 | 532 | 358,923 | ||||||||||||
Series 2005-C18, Class N* | 4.70 | 04/15/42 | 648 | 411,285 | ||||||||||||
Series 2002-C2, Class L* | 4.94 | 11/15/34 | 1,833 | 1,715,611 | ||||||||||||
Series 2002-C2, Class M* | 4.94 | 11/15/34 | 1,072 | 969,919 | ||||||||||||
Series 2002-C2, Class N* | 4.94 | 11/15/34 | 938 | 827,586 | ||||||||||||
Series 2002-C2, Class O* | 4.94 | 11/15/34 | 755 | 613,070 | ||||||||||||
Series 2002-C2, Class P* | 4.94 | 11/15/34 | 10,044 | 3,420,985 | ||||||||||||
Series 2003-C3, Class J* | 4.98 | 02/15/35 | 2,045 | 1,941,865 | ||||||||||||
Series 2006-C29, Class K* | 5.07 | 11/15/48 | 1,399 | 1,176,566 | ||||||||||||
Series 2006-C29, Class L* | 5.07 | 11/15/48 | 932 | 764,108 | ||||||||||||
Series 2006-C29, Class M* | 5.07 | 11/15/48 | 887 | 628,519 | ||||||||||||
Series 2006-C29, Class N* | 5.07 | 11/15/48 | 1,145 | 757,181 |
4
HYPERION BROOKFIELD INCOME FUND, INC. | |||||||||||||||||
Portfolio of Investments – (Unaudited) January 31, 2007 | |||||||||||||||||
Principal | |||||||||||||||||
Interest | Amount | Value | |||||||||||||||
Rate | Maturity | (000s) | (Note 2) | ||||||||||||||
COMMERCIAL MORTGAGE BACKED SECURITIES (continued) | |||||||||||||||||
Series 2006-C29, Class O* | 5.07 | % | 11/15/48 | $ | 2,464 | $ | 1,522,754 | ||||||||||
Series 2006-C29, Class P* | 5.07 | 11/15/48 | 2,507 | 1,419,401 | |||||||||||||
Series 2006-C29, Class Q* | 5.07 | 11/15/48 | 11,284 | 4,129,752 | |||||||||||||
23,674,493 | |||||||||||||||||
Total Other Commercial Mortgage Backed Securities (Cost – $213,117,588) | 213,967,501 | ||||||||||||||||
Total Commercial Mortgage Backed Securities (Cost – $213,117,588) | 213,967,501 | ||||||||||||||||
NON-AGENCY RESIDENTIAL MORTGAGE BACKED SECURITIES – 16.1% | |||||||||||||||||
Subordinated Collateralized Mortgage Obligations – 16.1% | |||||||||||||||||
Citicorp Mortgage Securities, Inc. | |||||||||||||||||
Series 2003-4, Class B4 | 5.00 | 03/25/18 | 275 | 253,326 | |||||||||||||
Series 2003-4, Class B5 | 5.00 | 03/25/18 | 137 | 110,210 | |||||||||||||
Series 2003-4, Class B6 | 5.00 | 03/25/18 | 275 | 155,208 | |||||||||||||
Series 2003-5, Class B4* | 5.35 | 04/25/33 | 498 | 444,865 | |||||||||||||
Series 2003-5, Class B5 | 5.35 | 04/25/33 | 332 | 266,330 | |||||||||||||
Series 2003-5, Class B6 | 5.35 | 04/25/33 | 499 | 241,237 | |||||||||||||
Series 2002-11, Class B4* | 5.84 | 11/25/32 | 949 | 945,761 | |||||||||||||
Series 2002-11, Class B5 | 5.84 | 11/25/32 | 475 | 464,667 | |||||||||||||
Series 2002-11, Class B6* | 5.84 | 11/25/32 | 713 | 534,476 | |||||||||||||
3,416,080 | |||||||||||||||||
Commercial | |||||||||||||||||
Series 2006-C8, Class L* | 5.06 | 12/10/46 | 2,207 | 1,861,662 | |||||||||||||
Series 2006-C8, Class M* | 5.06 | 12/10/46 | 2,207 | 1,808,005 | |||||||||||||
Series 2006-C8, Class N* | 5.06 | 12/10/46 | 551 | 391,260 | |||||||||||||
4,060,927 | |||||||||||||||||
First Horizon Mortgage Trust | |||||||||||||||||
Series 2005-FA9, Class B4 | 5.50 | 12/25/35 | 1,061 | 717,377 | |||||||||||||
Series 2005-FA9, Class B5 | 5.50 | 12/25/35 | 1,597 | 751,661 | |||||||||||||
Series 2005-FA9, Class B6 | 5.50 | 12/25/35 | 1,141 | 279,615 | |||||||||||||
1,748,653 | |||||||||||||||||
G3 Mortgage Reinsurance Ltd. | |||||||||||||||||
Series 1, Class EH* | 25.35 | † | 05/25/08 | 2,315 | 2,465,776 | ||||||||||||
Harborview Mortgage Loan Trust | |||||||||||||||||
Series 2005-14, Class B4* | 5.55 | 12/19/35 | 3,357 | 2,860,916 | |||||||||||||
Series 2005-1, Class B4*(b) | 7.07 | † | 03/19/35 | 1,167 | 1,068,344 | ||||||||||||
Series 2005-1, Class B5*(b) | 7.07 | † | 03/19/35 | 1,701 | 1,395,776 | ||||||||||||
Series 2005-1, Class B6*(b) | 7.07 | † | 03/19/35 | 2,189 | 547,241 | ||||||||||||
5,872,277 | |||||||||||||||||
5
HYPERION BROOKFIELD INCOME FUND, INC. | ||||||||||||||||||
Portfolio of Investments – (Unaudited) January 31, 2007 | ||||||||||||||||||
Principal | ||||||||||||||||||
Interest | Amount | Value | ||||||||||||||||
Rate | Maturity | (000s) | (Note 2) | |||||||||||||||
NON-AGENCY RESIDENTIAL MORTGAGE BACKED SECURITIES (continued) | ||||||||||||||||||
Residential Funding Mortgage Sec I | ||||||||||||||||||
Series 2003-S6, Class B1 | 5.00 | % | 04/25/18 | $ | 165 | $ | 148,323 | |||||||||||
Series 2003-S6, Class B2 | 5.00 | 04/25/18 | 83 | 67,868 | ||||||||||||||
Series 2003-S6, Class B3 | 5.00 | 04/25/18 | 165 | 54,589 | ||||||||||||||
Series 2005-S9, Class B1* | 5.75 | 12/25/35 | 906 | 790,563 | ||||||||||||||
Series 2005-S9, Class B2* | 5.75 | 12/25/35 | 544 | 376,095 | ||||||||||||||
Series 2005-S9, Class B3* | 5.75 | 12/25/35 | 907 | 290,091 | ||||||||||||||
1,727,529 | ||||||||||||||||||
Resix Financial Ltd. | ||||||||||||||||||
Series 2004-C, Class B7* | 8.82 | † | 09/10/36 | 1,933 | 1,933,146 | |||||||||||||
Series 2004-A, Class B8* | 10.32 | † | 02/10/36 | 837 | 859,426 | |||||||||||||
Series 2003-D, Class B7* | 11.07 | † | 12/10/35 | 2,827 | 2,939,978 | |||||||||||||
Series 2005-A, Class B9* | 11.07 | † | 03/10/37 | 1,338 | 1,338,053 | |||||||||||||
Series 2003-CB1, Class B8* | 12.07 | † | 06/10/35 | 1,095 | 1,138,683 | |||||||||||||
Series 2005-D, Class B9* | 13.32 | † | 12/15/37 | 2,937 | 2,984,501 | |||||||||||||
Series 2005-A, Class B10* | 13.82 | † | 03/10/37 | 1,044 | 1,054,118 | |||||||||||||
Series 2005-D, Class B10* | 14.82 | † | 12/15/37 | 1,468 | 1,472,060 | |||||||||||||
Series 2005-D, Class B11* | 16.82 | † | 12/15/37 | 1,958 | 1,967,642 | |||||||||||||
Series 2004-A, Class B11* | 19.82 | † | 02/10/36 | 957 | 995,361 | |||||||||||||
16,682,968 | ||||||||||||||||||
Washington Mutual | ||||||||||||||||||
Series 2003-S3, Class CB5 | 5.41 | 06/25/33 | 1,106 | 905,384 | ||||||||||||||
Series 2003-S3, Class CB6 | 5.41 | 06/25/33 | 1,106 | 574,917 | ||||||||||||||
Series 2005-AR2, Class B11(b) | 6.55 | † | 01/25/45 | 4,768 | 3,821,952 | |||||||||||||
Series 2005-AR2, Class B12(b) | 6.55 | † | 01/25/45 | 4,002 | 900,423 | |||||||||||||
6,202,676 | ||||||||||||||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||||||||||||
Series 2005-AR4, Class B6 | 4.56 | † | 04/25/35 | 1,188 | 392,156 | |||||||||||||
Series 2006-14, Class B4* | 6.00 | 11/25/36 | 1,248 | 1,068,044 | ||||||||||||||
Series 2006-15, Class B5* | 6.00 | 11/25/36 | 1,871 | 1,242,012 | ||||||||||||||
Series 2006-15, Class B6* | 6.00 | 11/25/36 | 1,992 | 791,895 | ||||||||||||||
3,494,107 | ||||||||||||||||||
Total Subordinated Collateralized Mortgage Obligations (Cost – $45,081,945) | 45,670,993 | |||||||||||||||||
Total Non-Agency Residential Mortgage Backed Securities (Cost – $45,081,945) | 45,670,993 | |||||||||||||||||
Value | ||||||||||||||||
Shares | (Note 2) | |||||||||||||||
PREFERRED STOCKS – 4.9% | ||||||||||||||||
Brandywine Realty Trust Series C, 7.50% (REIT) | 34,931 | 888,645 | ||||||||||||||
CBL & Associates Properties, Inc. 7.75% (REIT) | 51,628 | 1,329,421 | ||||||||||||||
CBL & Associates Properties, Inc. Series D, 7.38% (REIT) | 61,180 | 1,550,301 | ||||||||||||||
Cousins Properties, Inc. Series B, 7.50% (REIT) | 43,759 | 1,107,103 | ||||||||||||||
Health Care, Inc. Series F, 7.63% (REIT) | 59,703 | 1,535,561 | ||||||||||||||
Host Marriott Corp. Class E, 8.88% (REIT) | 50,000 | 1,350,500 | ||||||||||||||
Istar Financial, Inc. Series E, 7.88% (REIT) | 100,000 | 2,578,000 |
6
HYPERION BROOKFIELD INCOME FUND, INC. | |||||||||||||||
Portfolio of Investments – (Unaudited) January 31, 2007 | |||||||||||||||
Value | |||||||||||||||
Shares | (Note 2) | ||||||||||||||
PREFERRED STOCKS (continued) | |||||||||||||||
Istar Financial, Inc. Series F, 7.80% (REIT) | 20,000 | $ | 515,000 | ||||||||||||
Strategic Hotel Capital, Inc. Series A, 8.50% (REIT)* | 37,154 | 938,139 | |||||||||||||
Taubman Centers, Inc. Series G, 8.00% (REIT) | 53,666 | 1,436,102 | |||||||||||||
Urstadt Biddle Properties, Inc. Series D, 7.50% (REIT) | 23,118 | 587,428 | |||||||||||||
Total Preferred Stocks (Cost – $13,572,560) | 13,816,200 | ||||||||||||||
Principal | ||||||||||||||||
Interest | Amount | Value | ||||||||||||||
Rate | Maturity | (000s) | (Note 2) | |||||||||||||
SHORT TERM INVESTMENTS – 2.5% | ||||||||||||||||
Federal Home Loan Discount Notes(f) | 0.00 | % | 02/05/07 | 5,000 | 4,997,222 | |||||||||||
Federal Home Loan Discount Notes(f) | 0.00 | 02/02/07 | 1,800 | 1,799,750 | ||||||||||||
6,796,972 | ||||||||||||||||
United States Treasury Bill# | 4.92 | 03/15/07 | 250 | 248,557 | ||||||||||||
Total Short Term Investments (Cost – $7,043,965) | 7,045,529 | |||||||||||||||
Total Investments – 106.3% (Cost – $303,399,018) | 300,929,410 | |||||||||||||||
Liabilities in Excess of Other Assets – (6.3)% | (17,933,690 | ) | ||||||||||||||
NET ASSETS – 100.0% | $ | 282,995,720 | ||||||||||||||
@ | — | Portion or entire principal amount delivered as collateral for reverse repurchase agreements (Note 5). | ||
* | — | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may only be resold in transactions exempt from registration, normally to qualified institutional buyers. | ||
** | — | Acquired in connection with purchase of LB-UBS Commercial Mortgage Trust Series 2002-C2 Classes Q, S, T, and U. | ||
† | — | Variable Rate Security — Interest Rate is in effect as of January 31, 2007. | ||
(a) | — | Interest rate and principal amounts are based on the notional amount of the underlying mortgage pools. | ||
(b) | — | Security is a “step up” bond where coupon increases or steps up at a predetermined date. At that date the coupon increases to LIBOR plus a predetermined margin. | ||
(c) | — | Security is a “step up” bond where coupon increases or steps up at a predetermined date. Rates shown are current coupon and next coupon rate when security steps up. | ||
(d) | — | Bond is in default. | ||
(e) | — | Investments in loans receivable. | ||
(f) | — | Zero Coupon Note — Interest rate represents current yield to maturity. | ||
# | — | Portion or entire principal amount held as collateral for open future contracts (Note 7). | ||
REIT | — | Real Estate Investment Trust |
7
Statement of Assets and Liabilities – (Unaudited)
January 31, 2007
Assets: | ||||||
Investments in securities, at market (cost $297,899,018) (Note 2) | $ | 295,429,410 | ||||
Investments in loan receivable (cost $5,500,000) | 5,500,000 | |||||
Total investments (cost $303,399,018) | 300,929,410 | |||||
Cash | 657,342 | |||||
Cash collateral held for margin requirement on swap contracts | 530,000 | |||||
Interest and dividends receivable | 1,501,226 | |||||
Prepaid expenses and other assets | 85,769 | |||||
Total assets | 303,703,747 | |||||
Liabilities: | ||||||
Reverse repurchase agreements (Note 5) | 19,409,000 | |||||
Interest payable for reverse repurchase agreements (Note 5) | 27,264 | |||||
Net unrealized depreciation on swap contracts (Note 7) | 1,016,919 | |||||
Payable to broker-variation margin on open futures contracts | 89,063 | |||||
Investment advisory fee payable (Note 3) | 115,114 | |||||
Directors’ fee payable | 13,877 | |||||
Administration fee payable (Note 3) | 36,769 | |||||
Distribution payable | 21 | |||||
Total liabilities | 20,708,027 | |||||
Net Assets (equivalent to $6.83 per share based on 41,426,201 shares issued and outstanding) | $ | 282,995,720 | ||||
Composition of Net Assets: | ||||||
Capital stock, at par value ($0.001) (Note 6) | $ | 41,423 | ||||
Additional paid-in capital (Note 6) | 283,311,349 | |||||
Undistributed net investment income | 3,122,965 | |||||
Accumulated net realized gain | (552,940 | ) | ||||
Net unrealized depreciation | (2,927,077 | ) | ||||
Net assets applicable to capital stock outstanding | $ | 282,995,720 | ||||
8
Statement of Operations – (Unaudited)
For the Six Months Ended January 31, 2007
Investment Income(Note 2): | |||||||
Interest | $ | 13,581,059 | |||||
Dividends | 525,312 | ||||||
14,106,371 | |||||||
Expenses: | |||||||
Investment advisory fee (Note 3) | 700,163 | ||||||
Administration fee (Note 3) | 214,091 | ||||||
Insurance | 45,812 | ||||||
Custodian | 37,868 | ||||||
Directors’ fees | 32,268 | ||||||
Audit and tax service fees | 23,694 | ||||||
Reports to shareholders | 10,182 | ||||||
Legal fees | 9,866 | ||||||
Miscellaneous | 676 | ||||||
Total operating expenses | 1,074,620 | ||||||
Interest expense on reverse repurchase agreements (Note 5) | 364,961 | ||||||
Total expenses | 1,439,581 | ||||||
Less expenses waived by the investment adviser (Note 3) | (24,375 | ) | |||||
Net expenses | 1,415,206 | ||||||
Net investment income | 12,691,165 | ||||||
Realized and Unrealized Gain (Loss) on Investments (Note 2): | |||||||
Net realized loss on: | |||||||
Investment transactions | (93,630 | ) | |||||
Swap contracts | (126,142 | ) | |||||
Futures transactions | (73,030 | ) | |||||
Net realized loss on investment transactions, swap contracts and futures transactions | (292,802 | ) | |||||
Net change in unrealized appreciation/depreciation on: | |||||||
Investments | 741,125 | ||||||
Swap contracts | (847,411 | ) | |||||
Futures | 559,450 | ||||||
Net change in unrealized appreciation/depreciation on investments, short sales, swap contracts and futures | 453,164 | ||||||
Net realized and unrealized gain on investments, swap contracts and futures | 160,362 | ||||||
Net increase in net assets resulting from operations | $ | 12,851,527 | |||||
9
Statements of Changes in Net Assets
For the Six Months | |||||||||||
Ended | For the Year | ||||||||||
January 31, 2007 | Ended | ||||||||||
(Unaudited) | July 31, 2006 | ||||||||||
Increase (Decrease) in Net Assets Resulting from Operations: | |||||||||||
Net investment income | $ | 12,691,165 | $ | 21,678,993 | |||||||
Net realized gain (loss) on investment transactions, swap contracts and futures | (292,802 | ) | 8,369,064 | ||||||||
Net change in unrealized appreciation/depreciation on investments, swap contracts and futures | 453,164 | (9,481,975 | ) | ||||||||
Net increase in net assets resulting from operations | 12,851,527 | 20,566,082 | |||||||||
Dividends to Shareholders (Note 2): | |||||||||||
Net investment income | (9,589,452 | ) | (21,358,423 | ) | |||||||
Net realized gains | (6,066,796 | ) | (1,788,670 | ) | |||||||
Total Dividends | (15,656,248 | ) | (23,147,093 | ) | |||||||
Capital Stock Transactions (Note 6): | |||||||||||
Net Proceeds from sales of shares (0 and 10,099,573 shares, respectively) | — | 71,000,000 | |||||||||
Issued to shareholders in reinvestment of distributions (2,285,581 and 3,367,230 shares, respectively) | 15,656,227 | 23,147,077 | |||||||||
Net increase from capital stock transactions | 15,656,227 | 94,147,077 | |||||||||
Total increase in net assets | 12,851,506 | 91,566,066 | |||||||||
Net Assets: | |||||||||||
Beginning of period | 270,144,214 | 178,578,148 | |||||||||
End of period | $ | 282,995,720 | $ | 270,144,214 | |||||||
Undistributed net investment income | $ | 3,122,965 | $ | 21,252 | |||||||
10
Statement of Cash Flows – (Unaudited)
For the Six Months Ended January 31, 2007
Increase (Decrease) in Cash: | |||||||
Cash flows used for operating activities: | |||||||
Net increase in net assets resulting from operations | $ | 12,851,527 | |||||
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: | |||||||
Purchases of long-term portfolio investments | (51,616,069 | ) | |||||
Proceeds from disposition of long-term portfolio investments and principal paydowns | 40,912,073 | ||||||
Purchases of short-term portfolio investments, net | (2,225,806 | ) | |||||
Increase in interest and dividend receivable | (243,873 | ) | |||||
Increase in prepaid expenses and other assets | (46,292 | ) | |||||
Increase in variation margin payable | 89,063 | ||||||
Increase in interest payable for reverse repurchase agreements | 1,695 | ||||||
Increase in investment advisory fee payable | 32,887 | ||||||
Decrease in administration fee payable | (9,311 | ) | |||||
Decrease in accrued expenses and other liabilities | (59,182 | ) | |||||
Net accretion and paydown on investments | (2,420,472 | ) | |||||
Unrealized appreciation on investments | (741,125 | ) | |||||
Unrealized appreciation/depreciation on swap contracts | 847,411 | ||||||
Net realized loss on investment transactions | 93,630 | ||||||
Net cash used in operating activities | (2,533,844 | ) | |||||
Cash flows provided by financing activities: | |||||||
Net cash received on reverse repurchase agreements | 3,301,000 | ||||||
Dividends paid to shareholders, net of reinvestments | (21 | ) | |||||
Net cash provided by financing activities | 3,300,979 | ||||||
Net increase in cash | 767,135 | ||||||
Cash at beginning of period | 420,207 | ||||||
Cash at end of period | $ | 1,187,342 | |||||
Interest payments for the six months ended January 31, 2007 totaled $363,266.
Cash at end of period includes $530,000 received for margin requirements on swap contracts.
11
Financial Highlights
For the | |||||||||||||||||||||||||
Six Months | |||||||||||||||||||||||||
Ended | For the Year | For the Year | For the Year | For the Year | For the Year | ||||||||||||||||||||
January 31, 2007 | Ended | Ended | Ended | Ended | Ended | ||||||||||||||||||||
(Unaudited) | July 31, 2006 | July 31, 2005 | July 31, 2004 | July 31, 2003 | July 31, 2002 | ||||||||||||||||||||
Per Share Operating Performance: | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 6.90 | $ | 6.96 | $ | 6.83 | $ | 6.84 | $ | 11.14 | $ | 10.64 | |||||||||||||
Net investment income | 0.32 | 0.60 | 0.65 | * | 0.76 | * | 0.76 | 0.91 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments, short sales, futures and swap contracts | 0.01 | (0.02 | ) | 0.15 | (0.08 | ) | 0.28 | 0.63 | |||||||||||||||||
Net increase in net asset value resulting from operations | 0.33 | 0.58 | 0.80 | 0.68 | 1.04 | 1.54 | |||||||||||||||||||
Dividends from net investment income | (0.25 | ) | (0.59 | ) | (0.65 | ) | (0.65 | ) | (1.39 | ) | (0.87 | ) | |||||||||||||
Dividends from net realized gains | (0.15 | ) | (0.05 | ) | (0.02 | ) | (0.04 | ) | (0.92 | ) | (0.17 | ) | |||||||||||||
Dividends from returns of capital | — | — | — | — | (3.03 | ) | 0.00 | ||||||||||||||||||
Total dividends | (0.40 | ) | (0.64 | ) | (0.67 | ) | (0.69 | ) | (5.34 | ) | (1.04 | ) | |||||||||||||
Net asset value, end of period | $ | 6.83 | $ | 6.90 | $ | 6.96 | $ | 6.83 | $ | 6.84 | $ | 11.14 | |||||||||||||
Total Investment Return | 4.77% | (1) | 8.47% | 11.74% | 10.02% | 8.98% | 15.07% | ||||||||||||||||||
Ratios to Average Net Assets/ Supplementary Data: | |||||||||||||||||||||||||
Net assets, end of period (000’s) | $ | 282,996 | $ | 270,144 | $ | 178,578 | $ | 138,689 | $ | 98,539 | $ | 158,922 | |||||||||||||
Operating expenses | 0.77% | (2) | 0.79% | 0.87% | 0.89% | 0.77% | 0.81% | ||||||||||||||||||
Interest expense | 0.26% | (2) | 0.82% | 0.72% | 0.33% | 0.05% | 0.00% | ||||||||||||||||||
Total expenses | 1.03% | (2) | 1.61% | 1.59% | 1.22% | 0.82% | 0.81% | ||||||||||||||||||
Total expenses including fee waiver and excluding interest expense | 0.75% | (2) | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | ||||||||||||||||||
Net investment income | 9.06% | (2) | 9.34% | 9.67% | 11.02% | 7.75% | 9.08% | ||||||||||||||||||
Portfolio turnover rate | 14% | (1) | 46% | 31% | 51% | 83% | 113% |
(1) | Not Annualized |
(2) | Annualized |
* | Calculated based on the average shares outstanding during the year. |
12
Notes to Financial Statements – (Unaudited)
January 31, 2007
13
Notes to Financial Statements – (Unaudited)
January 31, 2007
14
Notes to Financial Statements – (Unaudited)
January 31, 2007
Maturity | |||||||||
Face Value | Description | Amount | |||||||
$ | 2,839,000 | Bank of America, 5.37%, dated 01/18/07, maturity date 02/13/07 | $ | 2,850,011 | |||||
3,686,000 | Bank of America, 5.37%, dated 01/18/07, maturity date 02/13/07 | 3,700,296 | |||||||
4,796,000 | Bear Stearns, 5.35%, dated 01/29/07, maturity date 02/05/07 | 4,800,989 | |||||||
3,282,000 | Bear Stearns, 5.35%, dated 01/29/07, maturity date 02/05/07 | 3,285,414 | |||||||
4,806,000 | Morgan Stanley, 5.37%, dated 01/18/07, maturity date 02/13/07 | 4,824,639 | |||||||
$ | 19,409,000 | ||||||||
Maturity Amount, Including Interest Payable | $ | 19,461,349 | |||||||
Market Value of Assets Sold Under Agreements | $ | 20,370,712 | |||||||
Weighted Average Interest Rate | 5.36 | % | |||||||
15
Notes to Financial Statements – (Unaudited)
January 31, 2007
Net Unrealized | ||||||||||||
Expiration | Appreciation/ | |||||||||||
Notional Amount | Date | Description | Depreciation | |||||||||
$ | 5,000,000 | 09/11/42 | Agreement with Bear Stearns, dated 11/02/05 to receive monthly the notional amount multiplied by 2.10% and to pay only in the event of a write down, failure to pay a principal payment or an interest shortfall on BSCMS 2005-PWR9K. | $ | 378,762 | |||||||
10,000,000 | 12/11/40 | Agreement with Bear Stearns dated 06/06/06 to pay monthly the notional amount multiplied by 1.15% and to receive in the event of a write down, failure to pay a principal amount or an interest shortfall on BSCMS 2005-PW10K. | (584,323 | ) | ||||||||
2,200,000 | 08/13/42 | Agreement with Bear Stearns, dated 06/06/06 to pay monthly the notional amount multiplied by 0.70% and to receive in the event of a write down, failure to pay a principal payment or an interest shortfall on MCS 2005-HQ6J. | (55,504 | ) | ||||||||
9,000,000 | 10/15/44 | Agreement with Bear Stearns, dated 06/06/06 to pay monthly the notional amount multiplied by 1.16% and to receive in the event of a write down, failure to pay a principal payment or an interest shortfall on WBCMT 2005-C21H. | (251,054 | ) | ||||||||
9,800,000 | 12/15/40 | Agreement with Goldman Sachs Capital Markets, LP, dated 06/06/06 to pay monthly the notional amount multiplied by 1.18% and to receive in the event of a write down, failure to pay a principal payment or an interest shortfall on CSFB 2005-C6J. | (431,361 | ) | ||||||||
8,000,000 | 01/15/46 | Agreement with Goldman Sachs Capital Markets, LP, dated 06/06/06 to pay monthly the notional amount multiplied by 1.18% and to receive in the event of a write down, failure to pay a principal payment or an interest shortfall on CD 2006-CD2J. | (300,596 | ) |
16
Notes to Financial Statements – (Unaudited)
January 31, 2007
Net Unrealized | ||||||||||||
Expiration | Appreciation/ | |||||||||||
Notional Amount | Date | Description | Depreciation | |||||||||
3,100,000 | 02/15/39 | Agreement with Greenwich Capital Markets, dated 06/06/06 to pay monthly the notional amount multiplied by 1.16% and to receive in the event of a write down, failure to pay a principal payment or an interest shortfall on CSMC 2006-C1K. | (89,051 | ) | ||||||||
6,000,000 | 04/15/42 | Agreement with Morgan Stanley Capital Services, dated 11/02/05 to receive monthly the notional amount multiplied by 2.15% and to pay only in the event of a write down, failure to pay a principal payment or an interest shortfall on WBCMT 2005-C18J. | 316,208 | |||||||||
$ | (1,016,919 | ) | ||||||||||
Number of | Unrealized | |||||||||||||
Contracts | Description | Notional Value | Appreciation | |||||||||||
300 | U.S Treasury Notes — 10 Year Futures | 32,025,000 | $ | 559,450 |
17
Shares Voted | Shares Voted | Shares Voted | |||||||||||
For | Against | Abstain | |||||||||||
1. To elect to the Fund’s Board of Directors | |||||||||||||
Clifford E. Lai | 24,332,938.38 | 0 | 0 |
Shares Voted | Shares Voted | Shares Voted | |||||||||||
For | Against | Abstain | |||||||||||
2. To elect to the Fund’s Board of Directors | |||||||||||||
Robert F. Birch | 24,332,938.38 | 0 | 0 |
Shares Voted | Shares Voted | Shares Voted | |||||||||||
For | Against | Abstain | |||||||||||
3. To elect to the Fund’s Board of Directors | |||||||||||||
Rodman L. Drake | 24,332,938.38 | 0 | 0 |
Shares Voted | Shares Voted | Shares Voted | |||||||||||
For | Against | Abstain | |||||||||||
4. To elect to the Fund’s Board of Directors | |||||||||||||
Harald R. Hansen | 24,332,938.38 | 0 | 0 |
Shares Voted | Shares Voted | Shares Voted | |||||||||||
For | Against | Abstain | |||||||||||
5. To elect to the Fund’s Board of Directors | |||||||||||||
Stuart A. McFarland | 24,332,938.38 | 0 | 0 |
Shares Voted | Shares Voted | Shares Voted | |||||||||||
For | Against | Abstain | |||||||||||
6. To elect to the Fund’s Board of Directors | |||||||||||||
Louis P. Salvatore | 24,332,938.38 | 0 | 0 |
Shares Voted | Shares Voted | Shares Voted | |||||||||||
For | Against | Abstain | |||||||||||
7. To amend the Fund’s Articles of Incorporation | |||||||||||||
Allow stockholder voting by written consent | 24,332,920.38 | 0 | 18 |
Shares Voted | Shares Voted | Shares Voted | |||||||||||
For | Against | Abstain | |||||||||||
8. To amend the Fund’s Articles of Incorporation | |||||||||||||
Perpetual duration of the Fund | 482.10 | 24,332,456.28 | 0 |
18
Shares Voted | Shares Voted | Shares Voted | |||||||||||
For | Against | Abstain | |||||||||||
9. To amend the Fund’s Articles of Incorporation | |||||||||||||
Reduce shareholder vote requirement for liquidation of the Fund | 464.11 | 24,332,456.28 | 18.00 |
Shares Voted | Shares Voted | Shares Voted | |||||||||||
For | Against | Abstain | |||||||||||
10. To amend the fundamental investment limitations of the Fund | |||||||||||||
Allow the Fund to invest in CMBS and loans where the underlying assets are non-dollar denominated Commercial Mortgage Loans | 464.11 | 24,332,456.28 | 18.00 | ||||||||||
19
Information Concerning Directors and Officer (Unaudited)
Position(s) Held with | Number of | |||||||
Fund and Term of | Portfolios in Fund | |||||||
Name, Address | Office and Length of | Principal Occupation(s) During Past 5 Years and | Complex Overseen | |||||
and Age | Time Served | Other Directorships Held by Director | by Director | |||||
Robert F. Birch c/o Three World Financial Center, 200 Vesey Street, 10th floor, New York, New York 10281-1010 Age 71 | Director, Member of the Audit Committee Elected since April 2002 | Director of several investment companies advised by the Advisor or by its affiliates (1998- Present); President and Director of New America High Income Fund (1992-Present); Director of Brandywine Funds (3) (2001- Present). | 4 | |||||
Rodman L. Drake c/o Three World Financial Center, 200 Vesey Street, 10th floor, New York, New York 10281-1010 Age 64 | Director, Member of the Audit Committee Elected since May 2005 | Chairman (since 2003) and Director of several investment companies advised by the Advisor or by its affiliates (1989-Present); Director and/or Lead Director of Crystal River Capital, Inc. (“CRZ”) (2005-Present); Director of Celgene Corporation (“CELG”) (April 2006-Present); Director of Student Loan Corporation (’‘STU”) (2005-Present); General Partner of Resource Capital Fund I, II & III CIP L.P. (1998-Present); Co-founder of Baringo Capital LLC (2002-Present); Director of Jackson Hewitt Tax Service Inc. (“JTX”) (2004-Present); Director of Animal Medical Center (2002-Present); Director and/or Lead Director of Parsons Brinckerhoff, Inc. (1995-Present); Chairman of Excelsior Funds (33) (1994-Present); Chairman of Laudus Funds (2006-Present). | 4 | |||||
Harald R. Hansen c/o Three World Financial Center, 200 Vesey Street, 10th floor, New York, New York 10281-1010 Age 75 | Director, Member of the Audit Committee Elected since December 1999 | Director of other investment company advised by the Advisor or by its affiliates (2003- Present); Director of Crystal River Capital, Inc. (2005-Present); Director and Chairman of Executive Committee of Georgia Commerce Bank (2002-Present); Director of Midtown Alliance (1988-Present); Chairman of the Board of U.S. Disabled Athletes Fund (1991- 2005); Trustee and Vice Chairman of the Board of Oglethorpe University (1993-Present); Trustee of Asheville School (1996-Present); Trustee of the Tull Foundation (1996-Present); Member of Advisory Board of Directors of Wachovia Bank, NA. (1996-Present). | 2 | |||||
Clifford E. Lai* c/o Three World Financial Center, 200 Vesey Street, 10th floor, New York, New York 10281-1010 Age 53 | Director and Chairman of the Board Elected since September 2000 | Managing Partner (2006-Present) of Brookfield Asset Management, Inc.; Managing Partner (2005-Present), Chairman (2006-Present), President (1998-2006) and Chief Investment Officer (1993-2002) of the Advisor; President, Chief Executive Officer and Director of Crystal River Capital, Inc. (“CRZ”) (2005-Present); President of several investment companies advised by the Advisor (1995-Present); Co-Chairman (2003-2006) and Board of Managers (1995-2006) of Hyperion GMAC Capital Advisors, LLC (formerly Lend Lease Hyperion Capital, LLC). | 4 |
20
Information Concerning Directors and Officer (Unaudited)
Position(s) Held with | Number of | |||||||
Fund and Term of | Portfolios in Fund | |||||||
Name, Address | Office and Length of | Principal Occupation(s) During Past 5 Years and | Complex Overseen | |||||
and Age | Time Served | Other Directorships Held by Director | by Director | |||||
Stuart A. McFarland c/o Three World Financial Center, 200 Vesey Street, 10th floor, New York, New York 10281-1010 Age 59 | Director Elected Since December 2006 | Director of several investment companies advised by the Advisor or by its affiliates (2006- Present); Director of Brandywine Funds (2003- Present); Director of New Castle Investment Corp. (2000-Present); Chairman and Chief Executive Officer of Federal City Bancorp, Inc. (2005-Present); Managing Partner of Federal City Capital Advisors, LLC (1997-Present). | 4 | |||||
Louis P. Salvatore c/o Three World Financial Center, 200 Vesey Street, 10th floor, New York, New York 10281-1010 Age 59 | Director Elected Since December 2006 | Director of several investment companies advised by the Advisor or by its affiliates (2005- Present); Director of Crystal River Capital, Inc. (“CRZ”) (2005-Present); Director of Turner Corp. (2003-Present); Director of Jackson Hewitt Tax Services, Inc. (“JTX”) (2004- Present); Director of Professional Services Insurance Company Limited (2002-Present); Employee of Arthur Andersen LLP (2002-Present); Partner of Arthur Andersen LLP (1977- 2002). | 4 | |||||
* | Interested person as defined in the 1940 Act, as amended (the “1940 Act”), because of affiliations with Hyperion Brookfiled Asset Management, Inc., the Fund’s Advisor. |
21
Information Concerning Directors and Officer (Unaudited)
Position(s) | Term of Office and | Principal Occupation(s) | ||||
Name, Address and Age | Held with Fund | Length of Time Served | During Past 5 Years | |||
John Dolan* c/o Three World Financial Center, 200 Vesey Street, 10th floor, New York, New York 10281-1010 Age 53 | President | Elected since September 2003 | Managing Partner (2005-Present), Chief Investment Strategist (1998-Present) and Chief Investment Officer (2002-Present) of the Advisor; Chief Investment Officer of Crystal River Capital, Inc. (2005-Present); Board of Managers (1995-2006) of Hyperion GMAC Capital Advisors, LLC (formerly Lend Lease Hyperion Capital, LLC). | |||
Thomas F. Doodian* c/o Three World Financial Center, 200 Vesey Street, 10th floor, New York, New York 10281-1010 Age 47 | Treasurer | Elected since December 1999 | Managing Director, Chief Operating Officer and Chief Financial Officer of Brookfield Operations and Management Services, LLC (January 2007- Present); Managing Director, Chief Operating Officer (1998-2006) and Chief Financial Officer (2000-2006) of the Advisor; Treasurer of several investment companies advised by the Advisor (1996-Present); Treasurer of Hyperion GMAC Capital Advisors, LLC (formerly Lend Lease Hyperion Capital, LLC) (1996-2006). | |||
Jonathan C. Tyras* c/o Three World Financial Center, 200 Vesey Street, 10th floor, New York, New York 10281-1010 Age 38 | Secretary | Elected November 2006** | Director, General Counsel and Secretary (October 2006-Present) of the Advisor; Vice President, General Counsel and Assistant Secretary of Crystal River Capital, Inc. (November 2006-Present); Secretary of several investment companies advised by the Advisor (November 2006-Present); Attorney at Paul, Hastings, Janofsky & Walker LLP (1998- October 2006). | |||
Josielyne K. Pacifico* c/o Three World Financial Center, 200 Vesey Street, 10th floor, New York, New York 10281-1010 Age 34 | Chief Compliance Officer (“CCO”) | Elected August 2006** | Vice President, CCO (August 2006-Present), Compliance Officer (July 2005-August 2006) and Assistant General Counsel (July 2006- Present) of the Advisor; CCO of several investment companies advised by the Advisor (August 2006-Present); Compliance Manager of Marsh & McLennan Companies (2004-2005); Staff Attorney at the United States Securities and Exchange Commission (2001-2004). | |||
* | Interested person as defined in the 1940 Act, as amended (the “1940 Act”), because of affiliations with Hyperion Brookfield Asset Management, Inc., the Fund’s Advisor. |
** | Daniel S. Kim served as the Secretary and CCO of the Fund and the Advisor until August 2006. |
22
Additional Information
President
Clifford E. Lai
Director and Chairman of the Board
Robert F. Birch*
Director
Harald R. Hansen*
Director
Rodman L. Drake*
Director
Stuart A. McFarland
Director
Louis P. Salvatore
Director
Thomas F. Doodian
Treasurer
Jonathan C. Tyras
Secretary
Josielyne K. Pacifico
Chief Compliance Officer
Item 2. Code of Ethics.
Not Applicable.
Item 3. Audit Committee Financial Expert.
Not Applicable.
Item 4. Principal Accountant Fees and Services.
Not Applicable.
Item 5. Audit Committee of Listed Registrants.
Not Applicable.
Item 6. Schedule of Investments.
See Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not Applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not Applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not Applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not Applicable.
Item 11. Controls and Procedures.
(a) The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s Disclosure Controls and Procedures are effective, based on their evaluation of such Disclosure Controls and Procedures as of a date within 90 days of the filing of this report on Form N-CSR.
(b) As of the date of filing this Form N-CSR, the Registrant’s principal executive officer and principal financial officer are aware of no changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s second fiscal quarter that has materially affected or is reasonably likely to materially affect the Registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a) (1) None.
(2) A separate certification for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 is attached as an exhibit to this Form N-CSR.
(3) None.
(b) A separate certification for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(b) under the Investment Company Act of 1940 is attached as an exhibit to this Form N-CSR.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
HYPERION BROOKFIELD INCOME FUND, INC.
By: | /s/ John H. Dolan John H. Dolan Principal Executive Officer |
Date: April 2, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ John H. Dolan John H. Dolan Principal Executive Officer |
Date: April 2, 2007
By: | /s/ Thomas F. Doodian Thomas F. Doodian Treasurer and Principal Financial Officer |
Date: April 2, 2007