Business & Finance
Business and Finance
Business and Finance
Thu, August 26, 2010
Wed, August 25, 2010 
NEW YORK--([ BUSINESS WIRE ])--Managed High Yield Plus Fund Inc. (NYSE: HYF) (the aFunda) is a closed-end management investment company seeking 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 July 2010 from UBS Global Asset Management (Americas) Inc. (aUBS Global AMa), the Funda™s investment manager
Market Review
The US high yield market, as measured by the BofA Merrill Lynch US High Yield Cash Pay Constrained Index1, returned 3.43% for the month of July, the marketa™s strongest month since September 2009. In a strong month for risk assets, the high yield market lagged broad equity indices, but outperformed most other fixed income asset classes, including investment grade debt and treasuries.
Sector Overview
Sector performance in July was led by insurance with technology, financials, telecommunication and transportation sectors performing strongly. Services, paper and building materials lagged, although only the environmental sector posted a negative return. From a ratings perspective, all categories posted positive returns with CC and CCC-rated securities outperforming BB and B-rated securities.
New issuance was stronger in July than in June with an estimated $20 billion coming to market globally. This exceeded new issuance levels for both May and June combined, and new issues as a group remained well oversubscribed. Proceeds were mainly used to refinance bonds and loans, although there was some issuance to fund LBO (aleveraged buy-outa by a companya™s management) and acquisition activity.
Performance Review
The Fund outperformed the BofA Merrill Lynch US High Yield Cash Pay Constrained Index (the aIndexa) for the month of July on a net asset value basis and on a market price basis. Overweight positions in gaming, technology, services and telecommunications contributed positively, while relative underweight positions in banks & thrifts and the cable sectors detracted from 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 Funda™s future investment intent.
Past performance does not predict future performance. The return and value of an investment will fluctuate so that an investor's shares, when sold, may be worth more or less than their original cost. Any Fund net asset value ("NAV") returns cited in a Fund Commentary assume, for illustration only, that dividends and other distributions, if any, were reinvested at the NAV on the payable dates. Any Fund market price returns cited in a Fund Commentary assume that all dividends and other distributions, if any, were reinvested at prices obtained under the Fund's Dividend Reinvestment Plan. Returns for periods of less than one year have not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and other distributions, if any, or the sale of Fund shares.
1 The BofA Merrill Lynch US High Yield Cash Pay Constrained Index is an index of publicly placed non-convertible, coupon-bearing US dollar denominated below investment grade corporate debt with a term to maturity of at least one year. The index is market weighted, so that larger bond issuers have a greater effect on the indexa™s return. However, the representation of any single bond issue is restricted to a maximum of 2% of the total index. Investors should note that indices do not reflect the deduction of fees and expenses.
