Managed High Yield Plus Fund Inc.—Dividend Declaration, Fund Commentary and Statistics
12 January 2010 - 9:35AM
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 $0.0195 per share. The amount of this dividend
more closely reflects the current earnings of the Fund. Previously,
the Fund had been paying a monthly dividend of $0.0180 per share.
The dividend is payable on January 29, 2010 to shareholders of
record as of January 21, 2010. The ex-dividend date is January 19,
2010. 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 December 2009 from UBS
Global Asset Management (Americas) Inc. (“UBS Global AM”), the
Fund’s investment advisor:
The US high yield market ended the year on a positive note, with
a return of 3.0% for the month of December, as measured by the
Merrill Lynch High Yield Cash Pay Constrained Index (the “Index”).
Like past months, the distressed and CCC sectors outperformed the
rest of the market. Spreads tightened a further 122 basis points
(or 1.22%; a basis point is equal to 1/100th of a percentage
point), to end the year at a high yield debt spread-to-Treasuries
of 629 basis points on an options-adjusted basis (in other words,
6.29%). (Spread is the difference in yield between a fixed-income
security and a Treasury security of similar maturity.)
Spread-sensitive sectors like broadcasting, publishing and banks
outperformed. According to the Index, all industry sectors recorded
a positive return. Sectors that trade with tight spreads based on
their better fundamentals underperformed, however.
New issuance was also strong, as dealers rushed to price bonds
prior to the holiday period. Over $15.5 billion of new issues were
priced, continuing the pace of new issuance from the third
quarter.
In December, the Fund outperformed the Index on a net asset
value basis, assuming dividend reinvestment. Performance benefited
from an overweight to the gaming, technology and financial sectors.
In addition, security selection in the electric and gaming sectors
also added to relative performance.
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.
Portfolio statistics as of December 31, 20091
Top ten holdings, including coupon and maturity
Percentage of total portfolio assets Coleman Cable, Inc.,
9.875% 10/01/12 3.1% Jacobs Entertainment, Inc., 9.750% 06/15/14
2.6% Exopack Holding Corp., 11.250% 02/01/14 2.3% Frontier
Communications, 9.000% 08/15/31 2.2% Cellu Tissue Holdings, Inc.,
11.500% 06/01/14 2.2% Sheridan Acquisition Corp., 10.250% 08/15/11
2.1% Mirant Americas Generation LLC, 9.125% 05/01/31 2.1% Mobile
Services/Storage Group, 9.750% 08/01/14 2.0% Pokagon Gaming
Authority, 10.375% 06/15/14 2.0% Southern States Cooperative, Inc.,
10.500% 11/01/11 2.0% Total 22.6% Top five
industries2 Gaming 11.1% Electric-generation
6.7% Support-services 6.4% Diversified capital goods 6.2% Health
services 5.4% Total 35.8% Credit quality3
Ba/BB and higher 19.4% B/B 55.3% Caa/CCC and
lower 23.3% Equity/preferred 0.6% Cash equivalents
1.4% Total 100.0% Other characteristics
Net asset value per share4 $2.11 Market price per share4 $1.99
Weighted average maturity 6.5 Yrs Weighted average modified
duration5 3.4 Yrs Weighted average coupon6 8.2% Leverage7 17.76%
Yields4 NAV yield 11.09% Market yield 11.76%
1 The Fund is actively managed, and its portfolio composition
will vary over time.
2 Effective November 30, 2009, the Fund’s industry
categorizations for portfolio holdings have been changed. The
Fund’s advisor views the changes as relatively minor; however,
prior portfolio statistics information may not be as comparable to
current or future portfolio statistics as might have otherwise been
the case.
3 Credit quality ratings are from Moody’s, unless that rating is
unavailable. If so, the default credit quality rating will be from
Standard & Poor's; if that is unavailable, an internal rating
from UBS Global AM will be used. Standard & Poor's ("S&P")
is a division of The McGraw-Hill Companies, Inc.
4 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.
5 Modified duration is the change in the price of a security,
expressed in years, expected in response to each 1% change in the
yield to maturity of the portfolio's holdings.
6 Weighted by par.
7 As a percentage of total assets minus total liabilities,
excluding liabilities for borrowed money. Leverage may vary.
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