Managed High Yield Plus Fund Inc.—Dividend Declaration, Announcement of Co-Portfolio Manager, Fund Commentary and Statistics
13 April 2010 - 7:05AM
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 dividend is payable on
April 30, 2010 to shareholders of record as of April 22, 2010. The
ex-dividend date is April 20, 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.
Announcement of Co-Portfolio Manager
Effective April 30, 2010, Matthew A. Iannucci, CFA, will serve
as co-portfolio manager for the Fund. Mr. Iannucci is an Executive
Director and Senior Portfolio Manager at UBS Global Asset
Management (Americas) Inc. (“UBS Global AM”), the Fund’s investment
advisor. Mr. Iannucci is a Vice President of the Fund and has
worked with the Fund’s current portfolio manager, Shu-Yang Tan, for
several years. Prior to assuming a portfolio management role at UBS
Global AM, Mr. Iannucci had served as a member of the High Yield
Credit Research team.
Fund Commentary for the month of March 2010 from UBS Global
AM
The spectacular run in the US high yield market continued in
March, as measured by the Merrill Lynch US High Yield Cash Pay
Constrained index. This represents the 13th consecutive positive
return month for the high yield market. Securities rated “CCC”
continued to outperform other ratings classes as “low and extended”
short-term rates provided an impetus for investors to continue
investing in more risky assets.
A main highlight of March was the calendar: over $30 billion of
new issues were priced globally, over $25 billion in US high yield
alone. While the refinancing wave continued, with issuers
addressing their upcoming loan and bond maturities with new deals,
there were also a few deals done for acquisitions and dividend
payouts. The private equity owners of many issuers are taking
advantage of the strength and openness in the high yield market to
pay themselves a dividend, something the market has not experienced
since 2008.
Financials and insurance continued to outperform the market from
a sector perspective. Other outperformers include the more
economically sensitive sectors like gaming, homebuilders and
automotive. The electric, healthcare and environmental sectors,
traditionally more defensive, underperformed.
Performance attribution
The Fund outperformed the Merrill Lynch High Yield Cash Pay
Constrained Index for the month. Sector overweights to the
financials (insurance, banks and financials), media and gaming
areas were positive contributors to performance. The Fund’s
underweight in homebuilders detracted from 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 March 31, 20101 Top
ten corporate bonds, including coupon and maturity
Percentage of total portfolio assets Jacobs Entertainment, Inc.,
9.750% 06/15/14 2.3% Exopack Holding Corp., 11.250% 02/01/14 2.3%
Sheridan Acquisition Corp., 10.250% 08/15/11 2.2% Frontier
Communications, 9.000% 08/15/31 2.1% Pokagon Gaming Authority,
10.375% 06/15/14 2.0% Mobile Services/Storage Group, 9.750%
08/01/14 2.0% Sunstate Equipment Co., 10.500% 04/01/13 1.9%
Southern States Cooperative, Inc., 10.500% 11/01/11 1.9% Axcan
Intermediate Holdings, Inc., 12.750% 03/01/16 1.5% GMAC, Inc.,
8.000% 11/01/31 1.4% Total 19.6% Top five
industries Gaming 11.0% Support-services 7.6% Health
facilities 5.1% Telecom-integrated/services 4.8%
Electric-generation 4.7% Total 33.2% Credit
quality2 Ba/BB and higher 21.5% B/B 54.6% Caa/CCC and
lower 21.4% Equity/preferred 0.1% Cash equivalents 2.4%
Total 100.0% Other characteristics Net
asset value per share3 $2.15 Market price per share3 $2.27 Weighted
average maturity 6.4 Yrs Weighted average modified duration4 4.1
Yrs Weighted average coupon5 9.8% Leverage6 18.03% Yields3
NAV yield 10.88% Market yield 10.31%
1 The Fund is actively managed, and its portfolio composition
will vary over time.
2 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.
3 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.
4 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.
5 Weighted by par.
6 As a percentage of adjusted net assets. Adjusted net assets
equals total assets minus total liabilities, excluding liabilities
for borrowed money.
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