Managed High Yield Plus Fund Inc.—Dividend Declaration, Fund Commentary, and Updated Price and Yield Information
15 December 2009 - 9:06AM
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
December 31, 2009 to shareholders of record as of December 24,
2009. The ex-dividend date is December 22, 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 November 2009 from UBS
Global Asset Management (Americas) Inc. (“UBS Global AM”), the
Fund’s investment advisor:
US dollar-denominated high yield securities posted positive
returns for the ninth consecutive month in November. During that
month, the Merrill Lynch US High Yield Cash Pay Constrained Index
(the "Index") gained 0.98%. The Index ended November with a spread
over Treasury securities of 757 basis points, (7.57%), which
represented a modest widening during the month. (Spread is the
difference between the yield paid on US Treasury bonds and
higher-risk securities.)
In November, the distressed and CCC-rated sectors outperformed
their higher rated counterparts, as the CCC segment of the Index
returned 1.97% and distressed bonds returned 2.02%.
Spread-sensitive sectors, including homebuilding, paper,
broadcasting and automotives outperformed, while a number of
defensive sectors, such as telecommunications, electric utilities,
banks and insurance underperformed.
On a net asset value return basis, the Fund modestly lagged the
Index during the month. This was mainly due to our overweight in
the gaming sector and underweight in the telecommunications sector.
However, these negatives were somewhat mitigated by our
underweights to the financials and insurance sectors.
Our outlook for the high yield market remains unchanged. We are
looking for spreads to continue to grind tighter over the medium
term, albeit with some volatility as the market finds its
equilibrium. With the Federal Reserve Board set to keep short-term
interest rates low for an extended period, an improving economy and
a positive refinancing environment should also lead to lower
defaults. Given our outlook, we are looking to increase active risk
to longer duration bonds from higher quality issuers operating in
more cyclical industries.
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 November
30, 2009:*
Net Asset Value per share $2.05 Market Price per
share $1.89 NAV Yield 10.54 % Market Yield
11.43 % *
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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