HYF Managed High Yield Plus Fund, Inc.

Managed High Yield Plus Fund Inc. (NYSE: HYF) (the “Fund”) 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 second quarter 2011 from UBS Global Asset Management (Americas) Inc. (“UBS Global AM”), the Fund’s investment manager

Market Review

The high yield market posted mixed results during the second quarter of 2011, but ultimately produced a modest gain. High yield prices moved sharply higher in April due to first-quarter corporate profits that generally exceeded expectations and to robust investor demand. The high yield market rose modestly in May, despite a number of headwinds, including signs that economic growth was decelerating and concerns regarding the European sovereign debt crisis. However, fears that Greece may default on its debt obligations and additional disappointing economic data triggered a flight to quality in June, and the high yield market experienced its first monthly decline since November 2010. From a ratings perspective, lower-quality securities broadly underperformed higher-quality securities during the quarter, with CCC-rated bonds significantly lagging BB-rated bonds. From a sector perspective, more defensive areas of the market outperformed their cyclical counterparts.

Performance Review

For the second quarter of 2011, the Fund posted a net asset value total return of 0.42%, and a market price return of 11.65%. On a net asset value basis, the Fund underperformed its benchmark, the BofA Merrill Lynch US High Yield Cash Pay Constrained Index1 (the “Index”), which returned 1.00% for the quarter.

During the second quarter, we maintained overweights versus the Index to insurance, gaming, retail and technology. The Fund ended the quarter with underweights to health care, metals and mining, aerospace and building materials. In addition, from a credit-quality positioning perspective, the Fund remained underweight the BB-rating category, but to a lesser extent compared to the first quarter of 2011. Corresponding overweights to B- and CCC-rated bonds were also reduced during the quarter.

The Fund’s holdings in diversified financial services, forestry/paper, insurance and gaming contributed positively to the Fund’s relative performance versus the benchmark. However, this was not enough to offset negative effects from investments in energy, transportation and publishing/printing sectors. From a ratings perspective, the Fund's underweight to higher-quality bonds detracted as they outperformed over the quarter.

Outlook

Our central scenario continues to be one of moderate economic growth, with weak housing and high unemployment expected to constrain consumption and growth prospects. Sovereign debt issues in peripheral Europe, softer economic data in the US and concerns regarding the raising of the debt ceiling have added to market volatility. In our view, this period of weaker economic data will likely prove to be transitory rather than a signal of a structural downturn for the economy. Credit fundamentals remain healthy, with corporate balance sheets generally in good shape and companies able to refinance debt at affordable rates. Consumer and commercial lending are showing signs of growth. Current high yield spreads are at levels that we believe provide a sufficient cushion for an increase in defaults, which remain below average historical levels. The current yield on the asset class remains attractive in an environment of modest growth, low cash rates and low defaults. The potential for significant volatility remains, however, given the recent weaker economic data and continued uncertainty regarding peripheral Europe.

Disclaimers Regarding Fund Commentary - The Fund Commentary is intended to assist shareholders in understanding how the Fund performed during the period 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.

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 on the sale of Fund shares.

1 The BofA Merrill Lynch US High Yield Cash Pay Constrained Index is an unmanaged 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 index’s return. However, the representation of any single bond issue is restricted to a maximum of 2% of the total index. The index is not leveraged. Investors should note that indices do not reflect the deduction of fees and expenses.

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