Investors Suffer Losses in Morgan Keegan Bond Funds

Investors in various Morgan Keegan Bond Funds have suffered huge losses over recent months. Many of these Morgan Keegan Bond Funds have experienced losses in their net asset values of more than 50% since the beginning of 2007, most of these losses coming in the past five months.

Specifically, the following Morgan Keegan Bond Funds have been adversely impacted:

Regions Morgan Keegan Select High Income-A, (Sym: MKHIX), Year to Date Return a/o (12/14/07) –56.66 percent

Regions Morgan Keegan Select High Income-C, (Sym: RHICX), Year to Date Return a/o (12/14/07) –56.76 percent

Regions Morgan Keegan Select High Income-I, (Sym: RHIIX), Year to Date Return a/o (12/14/07) –56.56 percent

RMK High Income Fund, (NYSE: RMH), Year to Date Return a/o (12/14/07) –62.91 percent

RMK Strategic Income Fund, (NYSE: RSF), Year to Date Return a/o (12/14/07) –64.08 percent

Regions Morgan Keegan Select Intermediate Bond Fund-A, (Sym: MKIBX), Year to Date Return a/o (12/14/07) –47.84 percent

Regions Morgan Keegan Select Intermediate Bond Fund-C, (Sym: RIBCX), Year to Date Return a/o (12/14/07) –48.07 percent

Regions Morgan Keegan Select Intermediate Bond Fund-I, (Sym: RIBIX), Year to Date Return a/o (12/14/07) –47.72 percent

All of these funds are managed by Morgan Keegan Asset Management Inc. and James C. Kelsoe. The abysmal performance of these funds is largely attributable to management's decision to concentrate the funds' investments in high risk mortgage- backed securities and CDOs. Recent Bloomberg reports on these funds establish that mortgage-backed securities and CDOs constituted more than 50% of each funds portfolio. This investment strategy appears to have been highly imprudent in light of the many concerns about the mortgage-backed securities and CDO markets that existed in 2005 and 2006.