RMK Multi-Sector High Income Fund, Inc.

Objective & Strategy

RMK Multi-Sector High Income Fund, Inc. seeks a high level of current income. The Fund seeks capital growth as a secondary investment objective when consistent with its primary investment objective. The Fund invests in a diversified portfolio consisting primarily of debt securities that offer attractive yield and capital appreciation potential. Under normal market conditions, the Fund invests a majority of its total assets in below investment grade debt securities, including up to 20% of the Fund's total assets in distressed securities. The Fund maintains the flexibility to invest up to 50% of its total assets in investment grade debt securities. The Fund invests up to 30% of its total assets in equity securities of both domestic and foreign issuers and up to 15% of its total assets in a combination of foreign debt and foreign equity securities. The Fund invests in a wide range of debt securities including, corporate bonds, mortgage-backed and asset-backed securities, convertible debt securities, distressed securities, including securities of companies in bankruptcy reorganization proceedings or otherwise in the process of debt restructuring, U.S. government and municipal obligations and foreign government obligations. (Below investment grade debt securities are rated Ba1 or lower by Moody's Investors Service, Inc., BB+ or lower by Standard & Poor's Ratings Group, comparably rated by another nationally recognized statistical rating organization or, if unrated, determined by the Fund’s investment adviser to be of comparable quality.)

INVESTMENT RISKS: Investors in any bond fund should anticipate fluctuations in price Bond prices and the value of bond funds decline as interest rates rise. Bonds with longer-term maturities generally are more vulnerable to interest rate risk than bonds with shorter-term maturities. Below investment grade bonds involve greater credit risk, which is the risk that the issuer will not make interest or principal payments when due. An economic downturn or period of rising interest rates could adversely affect the ability of issuers, especially issuers of below investment grade debt, to service primary obligations and an unanticipated default could cause the Fund to experience a reduction in value of its shares. The Fund’s investments in mortgage-backed or asset-backed securities that are “subordinated” to other interests in the same pool may increase credit risk to the extent that the Fund as a holder of those securities may only receive payments after the pool’s obligations to other investors have been satisfied. Below investment grade bonds are also subject to greater price volatility and are less liquid, especially during periods of economic uncertainty or change, than higher-rated debt securities. The value of U.S. and foreign equity securities in which the Fund invests will change based on changes in a company’s financial condition and in overall market and economic conditions. Leverage creates an opportunity for an increased return to common stockholders, but unless the income and capital appreciation, if any, on securities acquired with leverage proceeds exceed the costs of the leverage, the use of leverage will diminish the investment performance of the Fund’s shares. Use of leverage may also increase the likelihood that the net asset value of the Fund and market value of its common shares will be more volatile, and the yield and total return to common stockholders will tend to fluctuate more in response to changes in interest rates and creditworthiness.

Regulatory Filings

May 20, 2008 Proxy Statement
January 19, 2006 Prospectus
January 19, 2006 Statement of Additional Information

Press Releases

7/29/08 Press Release: Hyperion Brookfield assumed its duties as Investment Advisor
7/11/08 Press Release: Results of Joint Shareholder Meetings
5/22/08 Press Release: Distribution Declared
5/20/08 Update: Change of Venue for Annual Shareholders Meeting
4/21/08 Press Release: Hyperion Brookfield Proposed Trasnaction
4/07/08 Press Release: Annual Meeting Announced
2/15/08 Press Release: Distribution Declared
1/23/08 Press Release: Dividend Declaration Date Set

Financial Reports

September 30, 2007 Semi-Annual Report
March 31, 2008 Annual Report

Portfolio Holdings

The Fund files its complete schedule of portfolio holdings as of the 1st and 3rd quarters of its fiscal year on Form N-Q with the SEC no more than sixty days after the close of those quarters. The annual and semi-annual reports contain complete portfolio holdings for the 2nd and 4th fiscal quarters.

Publicly Disclosed Porfolio Holdings (filed February 28, 2008)

Shares of RMK Select Funds, like shares of all mutual funds, are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including possible loss of principal.

An investor should consider each fund's investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about each fund can be found in the funds' prospectus. To obtain a prospectus for RMK Select Short Term Bond Fund, RMK Select Intermediate Bond Fund, or  RMK Select High Income Fund, call 1-800-564-2188. To obtain a prospectus for all other RMK Select Funds, call 1-877-757-7424.

Please read the prospectus carefully before investing.