Managed High Yield Plus Fund Inc. - New Management Announcement and Portfolio Statistics.Business Editors NEW YORK--(BUSINESS WIRE)--Oct. 25, 2000 The following information is being provided about Managed High Yield Plus Fund Inc. ("Fund") by UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Asset Management (New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ) Inc., the Fund's sub-adviser, in light of recent market volatility. The Fund will be managed in a manner consistent with the primary objective of generating high income while seeking the secondary objective of capital appreciation. Within the context of these objectives, the sub-adviser's near-term near-term adj. Of, for, or involving a short period of time in the near future. goals are to improve the average credit ratings of the portfolio and diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. both sectors and individual holdings. With regard to diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. we anticipate decreasing exposure to certain credits and sectors that are currently over-weighted in the portfolio and adding exposure where appropriate. We continue to find the Gaming, Cable and Energy sectors attractive due to their strong asset coverage and operating performance. Less compelling sectors include Metals and Mining, Chemicals and certain sub-sectors of Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. . We believe improving the credit profile and diversifying the portfolio today will yield positive results over the long term. From a technical standpoint The Standpoint is a newspaper published in the British Virgin Islands. It was originally published under the name Pennysaver, largely as a shopping-coupon promotional newspaper, but since emerged as one of the most influential sources of journalism in the , the market remains weak. Cash outflows from mutual funds have continued at very high levels. High yield mutual funds have recorded five consecutive weeks of outflows totaling $1.36 billion, bringing the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. outflows to approximately $4.7 billion (per AMG AMG All Music Guide (music website) AMG All Media Guide (group of media websites) AMG All Movie Guide (Movie website) AMG Arzneimittelgesetz (German Law) Weekly Mutual Fund Reporters). This is quite different from 1999, when $3.1 billion entered high yield funds in the first nine months of the year. The situation has been exacerbated by the lack of broker/dealer capital committed to secondary trading. Although we anticipate more volatility throughout the remainder of the year, at the current spread of 750 basis points over Treasuries (as of October October: see month. 23, 2000) we believe that the High Yield sector remains attractive after giving effect to anticipated defaults and the required liquidity premium. This is the widest level that the High Yield market has traded at since 1991 when spreads neared 1000 basis points over Treasuries. The information on Managed High Yield Plus Fund Inc. presented below is as of September September: see month. 30, 2000 and represents actions taken by the Fund's previous portfolio manager, Mitchell Mitchell, city (1990 pop. 13,798), seat of Davison co., SE S.Dak.; inc. 1881. Mitchell is a trade, distribution, and shipping center for a dairy and livestock area. Hutchins Asset Management Inc. As of October 10, 2000, UBS Asset Management (New York) Inc. became the Fund's sub-adviser and assumed day-to-day day-to-day adj. 1. Occurring on a routine or daily basis: the day-to-day movements of the stock market. 2. portfolio management responsibility for the Fund. The Fund is actively managed and its portfolio composition will vary over time.
Portfolio Statistics (% of total portfolio assets) as of September 30,
2000:
Credit Quality
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BB & Higher 25.29 %
B 50.69
CCC & Lower 4.63
Non-Rated 8.50
Cash 9.50
Equity/Preferred 1.39
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Total 100.00
Top Five Sectors
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Communications (fixed) 20.97 %
Cable 10.83
Communications (mobile) 9.27
Energy 7.68
Service 5.95
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Total 54.69
Yields (a)
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Market Yield 14.86 %
NAV Yield 14.73 %
IPO Yield 8.80 %
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Top Ten Holdings
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Williams Communications 1.99 %
United Pan Europe Communications 1.94
Blount 1.86
PTC International 1.86
Tesoro Petroleum 1.77
R&B Falcon 1.72
Allied Waste 1.62
Budget 1.56
Alestra 1.55
Northeast Optic Network 1.53
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Total 17.40
Characteristics
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Net Asset Value $8.96
Market Price $8.88
Net Leverage 20.1 %
Weighted Avg Maturity 7.75 yrs
Weighted Avg Coupon 8.73 %
Weighted Avg Price $84.43
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(a) Market yield is calculated by multiplying the current month's
distribution by 12 and dividing by the month-end market price. NAV
yield is calculated by multiplying the current month's
distribution by 12 and dividing by the month-end net asset value.
IPO yield is calculated by multiplying the current month's
distribution by 12 and dividing by the initial public offering
price. Prices and yields will vary. The Fund is actively managed
and its portfolio composition will vary over time.
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