UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-08765

Managed High Yield Plus Fund Inc.

(Exact name of registrant as specified in charter)

51 West 52 nd Street, New York, New York 10019-6114

(Address of principal executive offices) (Zip code)

Mark F. Kemper, Esq.
UBS Global Asset Management
51 West 52 nd Street
New York, NY 10019-6114
(Name and address of agent for service)

Copy to:
Jack W. Murphy, Esq.
Dechert LLP
1775 I Street, N.W.
Washington, DC 20006-2401

Registrant’s telephone number, including area code: 212-882 5000

Date of fiscal year end: May 31

Date of reporting period: February 29, 2008



Item 1. Schedule of Investments

Managed High Yield Plus Fund Inc.
Schedule of investments—February 29, 2008 (unaudited)

    Face    
    amount ($) Value ($)
Corporate bonds—141.02%        
Agriculture — 1.42%        
Southern States Cooperative, Inc.        

10.500%, due 11/01/10 1,2

  3,000,000   3,105,000
Automobile OEM — 1.05%        
General Motors        

8.375%, due 07/15/33 2

  3,000,000   2,295,000
Automotive parts — 4.02%        
ArvinMeritor, Inc.        

8.125%, due 09/15/15 2

  6,200,000   5,130,500
Stanadyne Corp.        

10.000%, due 08/15/14 2

  4,000,000   3,640,000
        8,770,500
Building materials — 11.88%        
Coleman Cable, Inc.        

9.875%, due 10/01/12 2

  4,850,000   4,268,000
CPG International, Inc.        

10.500%, due 07/01/13 2

  6,000,000   5,280,000
Dayton Superior Corp.        

13.000%, due 06/15/09 2

  3,000,000   2,625,000
Interface, Inc.        

10.375%, due 02/01/10 2

  4,075,000   4,258,375
Masonite Corp.        

11.000%, due 04/06/15 2

  5,000,000   3,475,000
Masonite International Corp.        

11.000%, due 04/06/15 2

  3,000,000   2,070,000
US Concrete, Inc.        

8.375%, due 04/01/14 2

  4,800,000   3,960,000
        25,936,375
Business services/office equipment — 6.16%        
Harland Clarke Holdings        

9.500%, due 05/15/15 2

  7,750,000   5,735,000
Invensys PLC        

9.875%, due 03/15/11 1,2

  576,000   607,533
Xerox Capital Trust I        

8.000%, due 02/01/27 2

  7,000,000   7,114,891
        13,457,424
Chemicals — 5.62%        
Ineos Group Holdings PLC        

8.500%, due 02/15/16 1,2

  6,000,000   4,500,000
Momentive Performance        

9.750%, due 12/01/14 2

  2,500,000   2,237,500

10.125%, due 12/01/14 2

  4,000,000   3,430,000

11.500%, due 12/01/16 2

  1,000,000   765,000
Montell Finance Co. BV        

8.100%, due 03/15/27 1,2

  2,012,000   1,327,920
        12,260,420


Managed High Yield Plus Fund Inc.
Schedule of investments—February 29, 2008 (unaudited)

    Face    
    amount ($) Value ($)
Corporate bonds—(continued)        
Consumer products-durables — 1.04%        
Da-Lite Screen Co., Inc.        

9.500%, due 05/15/11 2

  2,500,000   2,275,000
Consumer products-non durables — 1.84%        
Prestige Brands, Inc.        

9.250%, due 04/15/12 2

  4,060,000   4,019,400
Consumer services — 5.48%        
Ahern Rentals, Inc.        

9.250%, due 08/15/13 2

  4,750,000   3,728,750
Ashtead Holdings PLC        

8.625%, due 08/01/15 1,2

  2,000,000   1,630,000
Hertz Corp.        

10.500%, due 01/01/16 2

  4,000,000   3,800,000
Sunstate Equipment Co.        

10.500%, due 04/01/13 1,2

  3,500,000   2,800,000
        11,958,750
Defense/aerospace — 3.14%        
Hawker Beechcraft Acquisition Co.        

8.875%, due 04/01/15 2

  5,750,000   5,865,000

9.750%, due 04/01/17 2

  1,000,000   992,500
        6,857,500
Electric-generation — 1.23%        
Mirant Americas Generation LLC        

9.125%, due 05/01/31 2

  3,000,000   2,685,000
Electronics — 4.95%        
NXP BV/NXP Funding LLC        

9.500%, due 10/15/15 2

  6,000,000   4,976,280
Sanmina-SCI Corp.        

7.741%, due 06/15/14 1,2,3

  1,500,000   1,380,000

8.125%, due 03/01/16 2

  5,000,000   4,450,000
        10,806,280
Finance-captive automotive — 3.02%        
Ford Motor Credit Co. LLC        

9.750%, due 09/15/10 2

  7,000,000   6,582,674
Finance-noncaptive consumer — 5.22%        
Countrywide Financial Corp.        

3.345%, due 05/05/08 2,3

  600,000   589,252
Countrywide Home Loan        

3.250%, due 05/21/08 2

  3,975,000   3,867,516
Residential Capital LLC        

5.646%, due 06/09/08 2,3

  7,800,000   6,942,000
        11,398,768


Managed High Yield Plus Fund Inc.
Schedule of investments—February 29, 2008 (unaudited)

    Face    
    amount ($) Value ($)
Corporate bonds—(continued)
Finance-noncaptive diversified — 1.81%        
GMAC LLC        

7.250%, due 03/02/11 2

  2,000,000   1,687,972

8.000%, due 11/01/31 2

  3,000,000   2,267,976
        3,955,948
Food — 1.19%        
Ameriqual Group LLC        

9.500%, due 04/01/12 1,2

  4,000,000   2,600,000
Gaming — 10.81%        
Circus & Eldorado Joint Venture        

10.125%, due 03/01/12 2

  4,500,000   4,528,125
Inn Of The Mountain Gods Resort & Casino        

12.000%, due 11/15/10 2

  4,400,000   4,334,000
Jacobs Entertainment, Inc.        

9.750%, due 06/15/14 2

  6,750,000   5,602,500
Little Traverse Bay Bands of Odawa Indians        

10.250%, due 02/15/14 1,2

  3,000,000   3,003,750
MTR Gaming Group, Inc., Series B        

9.750%, due 04/01/10 2

  2,525,000   2,449,250
Pokagon Gaming Authority        

10.375%, due 06/15/14 1,2

  2,983,000   3,102,320
Tropicana Entertainment LLC/Finance Corp.        

9.625%, due 12/15/14 2

  1,200,000   576,000
        23,595,945
Health care — 3.14%        
Community Health Systems        

8.875%, due 07/15/15 2

  4,900,000   4,808,125
HCA, Inc.        

9.125%, due 11/15/14 2

  2,000,000   2,040,000
        6,848,125
Home construction — 0.44%        
Stanley Martin-Community LLC        

9.750%, due 08/15/15 2

  2,000,000   960,000
Industrial-other — 4.31%        
ARAMARK Services, Inc.        

6.739%, due 02/01/15 2,3

  5,145,000   4,501,875
Mobile Services/Storage Group        

9.750%, due 08/01/14 2

  5,250,000   4,908,750
        9,410,625
Media-broadcast/outdoor — 7.69%        
CMP Susquehanna        

9.875%, due 05/15/14 2

  5,775,000   3,818,719
LIN Television Corp.        

6.500%, due 05/15/13 2

  2,000,000   1,810,000

Series B, 6.500%, due 05/15/13 2

  1,750,000   1,583,750
Sirius Satellite Radio        

9.625%, due 08/01/13 2

  3,450,000   2,846,250


Managed High Yield Plus Fund Inc.
Schedule of investments—February 29, 2008 (unaudited)

    Face    
    amount ($) Value ($)
Corporate bonds—(continued)        
Media-broadcast/outdoor—(concluded)        
Univision Communications        

9.750%, due 03/15/15 1,2

  7,400,000   5,106,000
Young Broadcasting, Inc.        

10.000%, due 03/01/11 2

  2,358,000   1,627,020
        16,791,739
Media-cable — 0.98%        
CCH I Holdings LLC        

10.000%, due 05/15/14 2

  3,000,000   1,455,000
Rainbow National Services LLC        

10.375%, due 09/01/14 1,2

  648,000   690,120
        2,145,120
Media-publishing — 6.12%        
American Color Graphics, Inc.        

10.000%, due 06/15/10 2

  2,250,000   1,080,000
American Media Operation, Series B        

10.250%, due 05/01/09 1,2

  145,440   99,626

10.250%, due 05/01/09 2

  4,000,000   2,740,000
Hollinger, Inc.        

12.875%, due 03/01/11 1,4, *

  975,000   97,500
Quebecor World Capital Corp.        

4.875%, due 11/15/08 4, *

  1,500,000   663,750

8.750%, due 03/15/16 1,4, *

  4,625,000   2,243,125
Sheridan Acquisition Corp.        

10.250%, due 08/15/11 2

  5,500,000   4,785,000
Vertis, Inc., Series B        

10.875%, due 06/15/09 2

  5,125,000   1,652,813
        13,361,814
Media-services — 3.71%        
Affinion Group, Inc.        

10.125%, due 10/15/13 2

  4,000,000   3,920,000
Baker & Taylor, Inc.        

11.500%, due 07/01/13 1,2

  4,500,000   4,179,375
        8,099,375
Metals/mining excluding steel — 2.72%        
American Rock Salt Co. LLC        

9.500%, due 03/15/14 2

  3,000,000   3,060,000
Neenah Corp.        

9.500%, due 01/01/17 2

  4,000,000   2,880,000
        5,940,000
Packaging & containers — 5.41%        
Exopack Holding Corp.        

11.250%, due 02/01/14 2

  4,000,000   3,700,000
Graham Packaging Co.        

9.875%, due 10/15/14 2

  3,000,000   2,557,500
Stone Container Finance        

7.375%, due 07/15/14 2

  6,250,000   5,562,500
        11,820,000


Managed High Yield Plus Fund Inc.
Schedule of investments—February 29, 2008 (unaudited)

    Face    
    amount ($) Value ($)
Corporate bonds—(continued)
Paper/forest products — 14.93%        
Abitibi-Consolidated, Inc.        

8.550%, due 08/01/10 2

  7,500,000   4,190,625
Ainsworth Lumber        

7.250%, due 10/01/12 2

  7,500,000   4,781,250
Boise Cascade LLC        

7.125%, due 10/15/14 2

  1,600,000   1,504,000
Bowater Canada Finance        

7.950%, due 11/15/11 2

  7,750,000   5,076,250
Bowater, Inc.        

9.500%, due 10/15/12 2

  1,250,000   787,500
Cellu Tissue Holdings, Inc.        

9.750%, due 03/15/10 2

  5,000,000   4,625,000
Millar Western Forest        

7.750%, due 11/15/13 2

  1,000,000   725,000
Newpage Corp.        

10.000%, due 05/01/12 2

  4,000,000   4,010,000

12.000%, due 05/01/13 2

  1,000,000   985,000
Verso Paper Holdings LLC        

9.125%, due 08/01/14 2

  1,000,000   942,500

11.375%, due 08/01/16 2

  5,500,000   4,977,500
        32,604,625
Real estate management services — 2.06%        
Realogy Corp.        

12.375%, due 04/15/15 2

  8,500,000   4,505,000
Retail-restaurants — 0.05%        
Buffets, Inc.        

12.500%, due 11/01/14 4, *

  4,500,000   112,500
Retail-specialty — 3.01%        
Brookstone Co., Inc.        

12.000%, due 10/15/12 2

  4,400,000   4,092,000
GameStop Corp.        

8.000%, due 10/01/12 2

  2,350,000   2,476,312
        6,568,312
Steel producers/products — 0.43%        
Ryerson, Inc.        

12.000%, due 11/01/15 1,2

  1,000,000   940,000
Technology-hardware — 2.72%        
Freescale Semiconductor        

8.875%, due 12/15/14 2

  1,200,000   978,000

10.125%, due 12/15/16 2

  7,000,000   4,970,000
        5,948,000
Technology-software — 4.23%        
Sungard Data Systems, Inc.        

10.250%, due 08/15/15 2

  6,250,000   6,218,750
Unisys Corp.        

8.500%, due 10/15/15 2

  3,500,000   3,027,500
        9,246,250


Managed High Yield Plus Fund Inc.
Schedule of investments—February 29, 2008 (unaudited)

    Face    
    amount ($) Value ($)
Corporate bonds—(concluded)        
Telecom-satellite — 1.81%        
Echostar DBS Corp.        

6.625%, due 10/01/14 2

  1,000,000   962,500
Intelsat Subsidiary Holding Co. Ltd.        

8.625%, due 01/15/15 2

  3,000,000   3,000,000
        3,962,500
Telecom-wireless — 2.60%        
US Unwired, Inc., Series B        

10.000%, due 06/15/12 2

  1,750,000   1,627,500
Wind Acquisition Finance SA        

10.750%, due 12/01/15 1,2

  4,000,000   4,050,000
        5,677,500
Telecom-wirelines — 2.53%        
Citizens Communications        

9.000%, due 08/15/31 2

  6,000,000   5,520,000
Textile/apparel — 1.15%        
Rafaella Apparel Group        

11.250%, due 06/15/11 2

  3,333,000   2,499,750
Transportation services — 1.10%        
Navios Maritime Holdings        

9.500%, due 12/15/14 2

  2,500,000   2,406,250
Total corporate bonds (cost—$373,599,443)       307,927,469
       
    Number of  
Security description   shares/units  
Common stocks* — 0.02%        
Consumer services — 0.00%        
NCI Holdings, Inc. 5,6   5,456   0
Energy-refining & marketing — 0.00%        
Orion Refining Corp. 5,6   1,253   0
Retail-restaurants — 0.00%        
American Restaurant Group, Inc. 5,6   129   0
Technology software — 0.01%        
Knology, Inc. 2   693   8,461
Telecom-wireless — 0.01%        
American Tower Corp., Class A 2   636   24,448
Telecom-wirelines — 0.00%        
XO Holdings, Inc. 2   1,052   1,736
Total common stocks (cost—$2,721,882)       34,645
Other equity security* — 0.00%        
Media-cable — 0.00%        
Adelphia Contingent Value Vehicle 5,6,7 (cost—$0)   2,000,000   0

Managed High Yield Plus Fund Inc.
Schedule of investments—February 29, 2008 (unaudited)

    Number of    
Security description   warrants Value ($)  
 
Warrants* — 0.26%          
 
Building materials — 0.00%          
 
Dayton Superior Corp., strike @ $0.01 expires 06/15/09 5,6,8   2,500   0  
 
Energy-oilfield services — 0.26%          
 
Key Energy Services, Inc., strike @ $4.88 expires 01/15/09 2   4,500   563,063  
 
Telecom-wirelines — 0.00%          
 
Pathnet, Inc., strike @ $0.01, expires 04/15/08 5,6   4,950   0  
 
XO Holdings, Inc.,          

Series A, strike @ $6.25, expires 01/16/10 2

  2,105   253  

Series B, strike @ $7.50, expires 01/16/10 2

  1,578   79  

Series C, strike @ $10.00, expires 01/16/10 2

  1,578   31  
 
Total warrants (cost—$46,560)       563,426  
 
           
    Face      
    amount ($)    
 
Repurchase agreement — 3.60%          
 

Repurchase agreement dated 02/29/08 with State Street Bank & Trust Co., 1.260% due 03/03/08, collateralized by $4,649,511 US Treasury Bills, zero coupon due 04/15/08, $66,674 US Treasury Bills, zero coupon due 08/21/08, $161,215 US Treasury Bonds, 7.125% to 7.250% due 05/15/16 to 02/15/23 and $3,071,963 US Treasury Notes, 4.875% due 08/31/08; (value—$8,028,442); proceeds: $7,871,826 (cost—$7,871,000)

  7,871,000   7,871,000  
 
Total investments (cost—$384,238,885) 9,10 — 144.90%       316,396,540  
 
Liabilities in excess of other assets — (44.90)%       (98,046,052 )
 
Net assets — 100.00%       218,350,488  
 

*   Non-income producing.
     
1   Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 18.99% of net assets as of February 29, 2008, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.
     
2   Entire or partial amount pledged as collateral for bank loan.
     
3   Floating rate security. The interest rate shown is the current rate as of February 29, 2008.
     
4   Bond interest in default.
     
5   Illiquid securities representing 0.00% of net assets as of February 29, 2008.
     
6   Security is being fair valued by a valuation committee under the direction of the board of directors.
     
7   Represents contingent value vehicle (“CVV”) obligations. The CVV obligations represent units in a trust that was formed pursuant to a Plan of Reorganization of Adelphia Communications Corporation to hold certain litigation claims against Adelphia’s third party lenders, accountants and other parties.

Managed High Yield Plus Fund Inc.
Schedule of investments—February 29, 2008 (unaudited)

8   Security exempt from registration under Rule 144A of the Securities Act of 1933. This security, which represents 0.00% of net assets as of February 29, 2008, is considered illiquid and restricted. (See table below for more information).

                  Acquisition            
                  cost as a           Value as a
      Acquisition     Acquisition     percentage of     Value at     percentage of
Restricted security     date     cost ($)     net assets (%)     02/29/08 ($)     net assets (%)
Dayton Superior Corp., warrants, expiring 06/15/09     06/09/00     46,550     0.02     0     0.00

9   Cost of investments shown approximates cost for federal income tax purposes. Gross unrealized appreciation of investments and gross unrealized depreciation of investments at February 29, 2008 were $1,307,042 and $69,149,387, respectively, resulting in net unrealized depreciation of investments of $67,842,345.

10   The Fund calculates its net asset value based on the current market value, where available, for its portfolio securities. The Fund normally obtains market values for its securities from independent pricing sources and broker-dealers. Independent pricing sources may use last reported sale prices, current market quotations or valuations from computerized “matrix” systems that derive values based on comparable securities. A matrix system incorporates parameters such as security quality, maturity and coupon, and/or research and evaluations by its staff, including review of broker-dealer market price quotations, if available, in determining the valuation of the portfolio securities. Securities traded in the over-the-counter (“OTC”) market and listed on The Nasdaq Stock Market, Inc. (“Nasdaq”) normally are valued at the NASDAQ Official Closing Price. Other OTC securities are valued at the last bid price available on the valuation date prior to valuation. Securities which are listed on US and foreign stock exchanges normally are valued at the last sale price on the day the securities are valued or, lacking any sales on such day, at the last available bid price. In cases where securities are traded on more than one exchange, the securities are valued on the exchange designated as the primary market by UBS Global Asset Management (Americas) Inc. (“UBS Global AM”), the investment manager and administrator of the Fund. UBS Global AM is an indirect wholly owned asset management subsidiary of UBS AG, an internationally diversified organization with headquarters in Zurich and Basel, Switzerland and operations in many areas of the financial services industry. If a market value is not available from an independent pricing source for a particular security, that security is valued at fair value as determined in good faith by or under the direction of the Fund’s Board of Director’s (the “Board”). Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; and changes in overall market conditions. Occasionally, events affecting the value of foreign investments occur between the time at which they are determined and the close of the New York Stock Exchange (“NYSE”), which will not be reflected in the computation of the Fund’s net asset value. If events materially affecting the value of such securities occur during such time periods, the securities will be valued at their fair value as determined in good faith by or under the direction of the Board. The amortized cost method of valuation, which approximates market value, generally is used to value short-term debt instruments with sixty days or less remaining to maturity, unless the Board determines that this does not represent fair value. All investments quoted in foreign currencies will be valued daily in US dollars on the basis of the foreign currency exchange rates prevailing at the time such valuation is determined by the Fund’s custodian.
 
    In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement on Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of February 29, 2008, management does not believe the adoption of FAS 157 will impact the amounts reported in the financial statements, however, additional disclosures will be required about the inputs used to develop the measurements of fair value and the effect of certain measurements reported on the Statement of operations for a fiscal period.

GMAC   General Motors Acceptance Corporation
     
OEM   Original Equipment Manufacturer

Issuer breakdown by country or territory of origin     Percentage of total investments (%)
United States     84.9
Canada     8.0
United Kingdom     2.1
Netherlands     2.0
Luxembourg     1.3
Bermuda     0.9
Marshall Islands     0.8
Total     100.0

For more information regarding the Fund’s other significant accounting policies, please refer to the Fund’s semiannual report to shareholders dated November 30, 2007.


Item 2. Controls and Procedures.

(a)  
The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (“Investment Company Act”)) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
     
(b)  
The registrant’s principal executive officer and principal financial officer are aware of no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

(a)  
Certifications of principal executive officer and principal financial officer of registrant pursuant to Rule 30a-2(a) under the Investment Company Act is attached hereto as Exhibit EX-99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Managed High Yield Plus Fund Inc.

By:   /s/ Kai R. Sotorp
    Kai R. Sotorp
    President
     
Date:   April 29, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:   /s/ Kai R. Sotorp
    Kai R. Sotorp
    President
     
Date:   April 29, 2008
     
By:   /s/ Thomas Disbrow
    Thomas Disbrow
    Vice President and Treasurer
     
Date:   April 29, 2008
Managed High Yield Plus Fund, Inc. (NYSE:HYF)
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From Jun 2024 to Jul 2024 Click Here for more Managed High Yield Plus Fund, Inc. Charts.
Managed High Yield Plus Fund, Inc. (NYSE:HYF)
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From Jul 2023 to Jul 2024 Click Here for more Managed High Yield Plus Fund, Inc. Charts.