Managed High Yield Plus Fund Inc.— Dividend Declaration, Fund Commentary, and Updated Price and Yield Information
May 11 2009 - 4:35PM
Business Wire
Managed High Yield Plus Fund Inc. (the "Fund") (NYSE:HYF), a
closed-end management investment company, today announced that the
Fund�s Board of Directors has declared a dividend from net
investment income of $0.0180 per share. The dividend is payable on
May 29, 2009 to shareholders of record as of May 21, 2009. The
ex-dividend date is May 19, 2009. Managed High Yield Plus Fund Inc.
seeks high income and, secondarily, capital appreciation, primarily
through investments in lower-rated, income producing debt and
related equity securities.
Fund Commentary for the month of April 2009 from UBS Global
Asset Management (Americas) Inc. (�UBS Global AM�), the Fund�s
investment advisor:
The US high yield market rallied significantly in April, gaining
11.09% during the month, as measured by the Merrill Lynch US High
Yield Cash Pay Constrained Index, the �Index�. This represents the
best single month return since the Index, which is also the Fund�s
benchmark, was developed. The Index ended the month with a spread
over Treasury securities�of 1367 basis points (i.e., 13.67%), which
was�288 basis points (i.e.,�2.88%) tighter than it had been at the
end of March. (Spread is the difference between the yield paid on
US Treasury bonds and higher-risk securities.) As was the case in
recent months, the high yield market�s performance�exhibited a
correlation to that�of�the�equity market. Since reaching a low on
March 9, 2009, the equity market has returned 19.04%, as measured
by the S&P 500 Index.
In April, the Fund�benefited from an overweight to the Gaming
sector, which rebounded after lagging in the first quarter of 2009.
The Fund's positions in large�issues with a higher degree of
liquidity, as well as lower-priced bonds, also added to performance
as�the prices of these bonds were bid up following an influx of
cash into the high yield market.�In addition, the Fund�s use of
leverage�contributed positively to results, magnifying�the impact
of the strong�security performance.
We recognize that there has been recent spread tightening, but
we continue to believe that it is not fully reflective of the
headwinds the high yield market faces from a weak global economy.
In light of this, we plan to continue to position the Fund
relatively defensively until we see evidence of an improving
earnings outlook and a deceleration in the decline of asset
prices.
Disclaimers Regarding Fund Commentary - The Fund
Commentary is intended to assist shareholders in understanding how
the Fund performed during the month noted. Views and opinions were
current as of the date of this press release. They are not
guarantees of performance or investment results and should not be
taken as investment advice. Investment decisions reflect a variety
of factors, and the Fund and UBS Global AM reserve the right to
change views about individual securities, sectors and markets at
any time. As a result, the views expressed should not be relied
upon as a forecast of the Fund�s future investment intent.
Characteristics as of April 30, 2009:*
Net Asset Value per share � � � � $1.53 Market Price per share � �
� � $1.30 NAV Yield 14.12% Market Yield � � � � 16.62%
* 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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