Dividend Declaration, Updated Price and Yield Information and Advisory Fee Waiver/Reduction
UBS Global Asset Management
New York, August 14, 2006 -- Insured Municipal Income Fund Inc. (PIF) , a closed-end management investment company normally investing substantially all of its assets in a diversified portfolio of tax-exempt municipal obligations, with common and preferred shares outstanding, today announced that the Fund's Board of Directors has declared a dividend from net investment income of $0.05 per share of common stock. The dividend is payable on August 31, 2006 to common shareholders of record as of August 24, 2006. The ex-dividend date is August 22, 2006. Under normal circumstances, the Fund invests at least 80% of its net assets in insured municipal obligations, the income from which is exempt from regular federal income tax.
UBS Global Asset Management (Americas) Inc. ("UBS Global AM") serves as the Fund's investment advisor and administrator. The Fund's Investment Advisory and Administration Contract provides that the Fund is to pay UBS Global AM a fee, accrued weekly and paid monthly, at the annual rate of 0.90% of the Fund's average weekly net assets applicable to holders of common and auction preferred shares. Prior to August 1, 2006, UBS Global AM had agreed to waive 0.30% of the fee so that the Fund's effective fee was 0.60% of average weekly net assets applicable to holders of common and auction preferred shares.
Effective August 1, 2006, the advisory fee has been reduced further. The prior fee waiver has been replaced with a new waiver arrangement. The Fund now pays an advisory fee at the annual rate of 0.83% of the Fund's average weekly net assets applicable to holders of common shares only. Net assets attributable to auction preferred shares are excluded from the calculation of the fee paid by the entire Fund. As a result of the new waiver arrangements, investment advisory and administration fees, when expressed as a percentage of net assets applicable to common stock, have been reduced. For example, for the annual period ended March 31, 2006, such fees when expressed as a percentage of net assets applicable to common stock were 1.01% (reflects prior fee waiver in effect through July 31, 2006); beginning August 1, 2006, this rate has been reduced to 0.83%. This waiver will continue indefinitely unless the Fund's Board of Directors agrees to any change.
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Characteristics as of July 31, 2006:*
Net Asset Value $14.60
Market Price $12.58
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NAV Yield 4.11%
Market Yield 4.77%
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* Net asset value (NAV), market price and yields will fluctuate. NAV yield is calculated by multiplying the current month's dividend by 12 and dividing by the month-end net asset value. Market yield is calculated by multiplying the current month's dividend by 12 and dividing by the month-end market price. |
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