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ISS Offers Recommendations for Investment Grade Municipal Income Fund Vote

^{Published on 2008-12-30 13:24:07, Last Modified on 2008-12-30 13:25:07 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Investment Grade Municipal Income Fund Inc. (the "Fund") (NYSE: PPM), today announced that Institutional Shareholder Services Inc. ("ISS"), the leading independent proxy advisory firm, has recommended that the Fund's shareholders support the Fund's incumbent directors and vote "FOR" the re-election of the Fund's current directors and "FOR" approval of the Fund's investment advisory and administration contract on the WHITE proxy card.

ISS further recommended that shareholders "DO NOT VOTE" on the GOLD proxy card with respect to nominees of dissident hedge fund shareholder Western Investment LLC ("Western") as well as Western's proposal to terminate the investment advisory agreement with UBS Global Asset Management (Americas) Inc. ("UBS Global AM"). ISS also recommended that shareholders vote "AGAINST" shareholder proposals by Karpus Investment Management ("Karpus") and Walter S. Baer ("Baer") which, like the Western proposal, would have the effect of replacing UBS Global AM as the Fund's investment adviser.

In short, ISS recommended that Fund shareholders support each of the proposals put forth by current Fund management at the annual meeting (election of incumbent directors and approval of the new investment advisory and administration agreement) and reject all of the proposals of the Fund's dissident shareholders.

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In its independent analysis, ISS rejected Western's proposed slate of directors in favor of supporting the Fund's current directors. Acknowledging that most funds in its peer group currently face a discount to NAV, ISS stated that "[d]espite the Fund's current market price discount to NAV, ISS believes that dissidents have not demonstrated that change is warranted with the Fund." Further, ISS rejected Western's misleading characterization of Fund performance and, instead, concluded that "[w]e believe that its market price and NAV outperformance relative to its peers . . . justify maintaining the current Board."

Further with respect to the dissidents' proposal to replace UBS Global AM as the Fund's investment adviser, ISS also cited the Fund's outperformance as well as "the uncertainties associated with terminating UBS Global AM" and concluded by recommending that shareholders "vote AGAINST the dissidents' proposals to terminate the advisory agreement with UBS Global AM."

In connection with the annual meeting, the Fund has filed a proxy statement and additional soliciting materials with the Securities and Exchange Commission (the "SEC"). Investors and security holders are strongly advised to read these materials because they contain important information about the annual meeting. Free copies of these materials are available on the SEC's website at [ www.sec.gov ].

The Fund urges its shareholders to support the Fund's incumbent directors by completing, signing and dating the WHITE proxy card they have received, and NOT to sign any GOLD or any other color proxy card they may receive from Western. Shareholders who have previously signed a GOLD proxy card are urged to revoke that proxy by signing, dating and mailing the Fund's WHITE proxy card.

Shareholders who have questions concerning the current proxy solicitation, or who need assistance in revoking any proxy they may have previously granted, should contact Georgeson Inc., the Fund's proxy solicitor, toll free at: 1-877-278-9670.

Investment Grade Municipal Income Fund Inc. is 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. Under normal circumstances, the Fund invests at least 80% of its net assets in investment grade municipal obligations, the income from which is exempt from regular federal income tax.

Note: ISS is a subsidiary of RiskMetrics Group, Inc.. Permission to use quotations from the ISS/RiskMetrics report was neither sought nor obtained.