Managed High Yield Plus Fund Inc. — Dividend Declaration, Fund Commentary, and Updated Price and Yield Information
16 June 2009 - 7:01AM
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
June 30, 2009 to shareholders of record as of June 25, 2009. The
ex-dividend date is June 23, 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 May 2009 from UBS Global
Asset Management (Americas) Inc. (�UBS Global AM�), the Fund�s
investment advisor:
The market for US dollar-denominated high yield securities
rallied during May, gaining 6.96% during the month, as measured by
the Merrill Lynch US High Yield Cash Pay Constrained Index, the
�Index.� This continued the rally which began in mid-March, with
the market drawing strength from the US banking �stress test�
results � which investors interpreted as an indication that the
worst of the financial crisis may be over.
The Index ended the month with a spread over Treasury securities
of 1153 basis points (i.e., 11.53%), which represented a tightening
of 214�basis points (i.e.,�2.14�%) for the month. (Spread is the
difference between the yield paid on US Treasury bonds and
higher-risk securities.) The rally was broad-based, with all
sectors of the high yield market providing positive returns, with
the exception of the Cable Television sector. CCC rated issues
performed strongly, leading the way with a 13.3% return, while B
and BB rated issues returned 6.3% and 4.9%, respectively, as
measured by the Index.
In May, the Fund�outperformed the Index�due�largely to
an�overweight�to CCC rated issues as well as an overweight to the
Gaming sector, both of which outperformed.�In addition,�the Fund�s
use of leverage�contributed positively to results, magnifying�the
impact of the market�s strong performance during the month.
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�maintain our current
overall risk positioning, and anticipate only increasing risk when
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 May 31, 2009:*
Net Asset Value per share � $1.70 Market Price per share � $1.52
NAV Yield 12.71% Market Yield � 14.21%
* 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.
Managed High Yield Plus Fund, Inc. (NYSE:HYF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Managed High Yield Plus Fund, Inc. (NYSE:HYF)
Historical Stock Chart
From Jul 2023 to Jul 2024