- Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company (N-Q)

Managed High Yield Plus Fund Inc.
Schedule of investments — February 28, 2010 (unaudited)

			Face
Security description			amount ($)			Value ($)
Corporate bonds — 117.84%
Aerospace/defense — 1.35%
Global Aviation Holdings Ltd.
14.000%, due 08/15/13 1,2			1,275,000			1,284,563
Spirit Aerosystems, Inc.
7.500%, due 10/01/17 1,2			200,000			198,000
Triumph Group, Inc.
8.000%, due 11/15/17 1,2			250,000			251,875
						1,734,438
Airlines — 0.78%
Delta Air Lines, Inc.
12.250%, due 03/15/15 1,2			500,000			508,125
United Air Lines, Inc.
9.875%, due 08/01/13 1			500,000			500,000
						1,008,125
Apparel/textiles — 0.40%
Levi Strauss & Co.
9.750%, due 01/15/15 2			500,000			521,250
Auto parts & equipment — 2.53%
American Axle & Manufacturing Holdings, Inc.
9.250%, due 01/15/17 1,2			500,000			517,500
Goodyear Tire & Rubber
9.000%, due 07/01/15 2			1,300,000			1,340,625
10.500%, due 05/15/16 2			285,000			307,087
Stanadyne Corp.
10.000%, due 08/15/14 2			1,000,000			905,000
Tenneco, Inc., Series B
10.250%, due 07/15/13 2			188,000			194,110
						3,264,322
Automakers — 1.39%
Ford Motor Credit Co. LLC
8.700%, due 10/01/14 2			500,000			512,868
9.875%, due 08/10/11 2			1,000,000			1,049,016
Navistar International Corp.
8.250%, due 11/01/21 2			225,000			228,375
						1,790,259
Automotive — 0.21%
ArvinMeritor, Inc.
10.625%, due 03/15/18			275,000			276,502
Banking — 4.15%
BankAmerica Capital II
8.000%, due 12/15/26 2			280,000			268,800
Citigroup Capital XXI
8.300%, due 12/21/57 2,3			300,000			278,250
GMAC LLC
7.250%, due 03/02/11 2			1,500,000			1,507,900
8.000%, due 11/01/31 2			2,400,000			2,214,000
8.300%, due 02/12/15 1,2			325,000			327,844
						4,049,744

Managed High Yield Plus Fund Inc.
Schedule of investments — February 28, 2010 (unaudited)

			Face
Security description			amount ($)			Value ($)
Corporate bonds — (continued)
Banking — (concluded)
NB Capital Trust II
7.830%, due 12/15/26 2			300,000			282,000
Royal Bank of Scotland Group PLC
7.640%, due 09/29/17 2,4,5			750,000			461,250
						5,340,044
Building materials — 3.99%
CPG International, Inc.
10.500%, due 07/01/13 2			2,000,000			1,960,000
Headwaters, Inc.
11.375%, due 11/01/14 1,2			175,000			176,750
Interface, Inc., Series B
11.375%, due 11/01/13 2			1,500,000			1,687,500
Ply Gem Industries
11.750%, due 06/15/13 2			1,300,000			1,319,500
						5,143,750
Chemicals — 0.04%
Georgia Gulf Corp.
9.000%, due 01/15/17 1,2			50,000			51,875
Consumer products — 0.80%
American Achievement Corp.
8.250%, due 04/01/12 1,2			815,000			802,775
Libbey Glass, Inc.
10.000%, due 02/15/15 1,2			225,000			232,875
						1,035,650
Consumer/commercial/lease financing — 2.93%
American General Finance Corp. MTN
6.900%, due 12/15/17 2			375,000			268,969
ILFC E-Capital Trust I
5.900%, due 12/21/65 1,2,3			650,000			338,000
International Lease Finance Corp. MTN
4.950%, due 02/01/11 2			1,050,000			1,020,510
5.450%, due 03/24/11 2			850,000			814,531
5.625%, due 09/15/10 2			200,000			197,751
5.650%, due 06/01/14 2			200,000			169,791
Residential Capital LLC
6.375%, due 06/30/10 2			1,000,000			965,000
						3,774,552
Diversified capital goods — 3.19%
Belden, Inc.
9.250%, due 06/15/19 1,2			1,000,000			1,060,000
Southern States Cooperative, Inc.
10.500%, due 11/01/11 1,2			3,000,000			2,992,500
Trimas Corp.
9.750%, due 12/15/17 1,2			60,000			60,300
						4,112,800

Managed High Yield Plus Fund Inc.
Schedule of investments — February 28, 2010 (unaudited)

			Face
Security description			amount ($)			Value ($)
Corporate bonds — (continued)
Electric-generation — 8.34%
AES Corp.
8.000%, due 06/01/20 2			950,000			932,187
Dynegy Holdings, Inc.
7.625%, due 10/15/26 2			750,000			517,500
7.750%, due 06/01/19 2			525,000			412,125
Edison Mission Energy
7.000%, due 05/15/17 2			75,000			54,938
7.625%, due 05/15/27 2			1,500,000			975,000
Energy Future Holdings Corp.
10.875%, due 11/01/17 2			375,000			284,062
Mirant Americas Generation LLC
9.125%, due 05/01/31 2			3,600,000			3,231,000
NRG Energy, Inc.
8.500%, due 06/15/19 2			2,000,000			1,997,500
Orion Power Holdings, Inc.
12.000%, due 05/01/10 2			2,000,000			2,012,500
Texas Competitive Electric Holdings Co. LLC,
Series A
10.250%, due 11/01/15 2			425,000			317,645
						10,734,457
Electric-integrated — 0.27%
North American Energy
10.875%, due 06/01/16 1,2			325,000			344,500
Electronics — 2.63%
Advanced Micro Devices, Inc.
8.125%, due 12/15/17 1,2			220,000			222,750
Freescale Semiconductor
10.125%, due 12/15/16 2			700,000			546,000
NXP BV/NXP Funding LLC
9.500%, due 10/15/15 2			225,000			195,750
Sanmina-SCI Corp.
8.125%, due 03/01/16 2			2,000,000			1,970,000
Viasystems, Inc.
12.000%, due 01/15/15 1,2			425,000			452,625
						3,387,125
Energy-exploration & production — 3.50%
Chesapeake Energy Corp.
9.500%, due 02/15/15 2			1,350,000			1,468,125
Comstock Resources, Inc.
8.375%, due 10/15/17 2			170,000			173,400
Denbury Resources, Inc.
8.250%, due 02/15/20 2			225,000			232,875
9.750%, due 03/01/16 2			500,000			538,750
Encore Acquisition Co.
9.500%, due 05/01/16 2			500,000			532,500
Hilcorp Energy I
8.000%, due 02/15/20 1,2			300,000			288,000

Managed High Yield Plus Fund Inc.
Schedule of investments — February 28, 2010 (unaudited)

			Face
Security description			amount ($)			Value ($)
Corporate bonds — (continued)
Energy-exploration & production — (concluded)
PetroHawk Energy Corp.
7.875%, due 06/01/15 2			230,000			230,000
10.500%, due 08/01/14 2			450,000			488,250
SandRidge Energy, Inc.
8.750%, due 01/15/20 1,2			300,000			294,000
Swift Energy Co.
8.875%, due 01/15/20 2			250,000			257,500
						4,503,400
Food & drug retailers — 1.37%
Great Atlantic & Pacific Tea Co., Inc.
11.375%, due 08/01/15 1,2			905,000			868,800
Rite Aid Corp.
9.500%, due 06/15/17 2			515,000			426,163
10.375%, due 07/15/16 2			450,000			471,375
						1,766,338
Food-wholesale — 2.05%
Bumble Bee Foods LLC
7.750%, due 12/15/15 1,2			200,000			200,500
Land O’Lakes Capital Trust I
7.450%, due 03/15/28 1,2			300,000			264,000
Pinnacle Foods Finance LLC
10.625%, due 04/01/17 2			500,000			517,500
Smithfield Foods, Inc.
10.000%, due 07/15/14 1,2			250,000			270,625
Tyson Foods, Inc.
10.500%, due 03/01/14 2			500,000			581,250
Viskase Cos., Inc.
9.875%, due 01/15/18 1,2			800,000			810,000
						2,643,875
Forestry/paper — 2.52%
Appleton Papers, Inc.
10.500%, due 06/15/15 1,2			500,000			462,500
Boise Cascade LLC
7.125%, due 10/15/14 2			385,000			345,537
Boise Paper Holdings LLC
9.000%, due 11/01/17 1,2			95,000			97,850
Cellu Tissue Holdings, Inc.
11.500%, due 06/01/14 2			1,500,000			1,661,250
Domtar Corp.
7.875%, due 10/15/11 2			49,000			51,818
Verso Paper Holdings LLC
9.125%, due 08/01/14 2			685,000			630,200
						3,249,155

Managed High Yield Plus Fund Inc.
Schedule of investments — February 28, 2010 (unaudited)

			Face
Security description			amount ($)			Value ($)
Corporate bonds — (continued)
Gaming — 12.98%
FireKeepers Development Authority
13.875%, due 05/01/15 1,2			1,925,000			2,213,750
Harrah’s Operating Co., Inc.
10.750%, due 02/01/16 2			2,000,000			1,540,000
11.250%, due 06/01/17			1,000,000			1,037,500
Jacobs Entertainment, Inc.
9.750%, due 06/15/14 2			3,950,000			3,643,875
Little Traverse Bay Bands of Odawa Indians
10.250%, due 02/15/14 1,6, *			3,000,000			757,500
MGM Mirage, Inc.
11.125%, due 11/15/17 1,2			500,000			540,000
13.000%, due 11/15/13 2			1,075,000			1,225,500
Peninsula Gaming LLC
8.375%, due 08/15/15 1,2			125,000			119,375
10.750%, due 08/15/17 1,2			125,000			121,875
Pokagon Gaming Authority
10.375%, due 06/15/14 1,2			2,983,000			3,102,320
River Rock Entertainment Authority
9.750%, due 11/01/11 2			1,030,000			948,887
Scientific Games International
9.250%, due 06/15/19 2			500,000			528,750
Shingle Springs Tribal Gaming Authority
9.375%, due 06/15/15 1,2			505,000			401,475
Yonkers Racing Corp.
11.375%, due 07/15/16 1,2			500,000			527,500
						16,708,307
Gas distribution — 1.26%
Atlas Pipeline Partner/Finance
8.125%, due 12/15/15 2			1,000,000			937,500
Crosstex Energy/Crosstex Energy Finance Corp.
8.875%, due 02/15/18 1,2			400,000			406,000
Inergy LP/Inergy Finance
8.750%, due 03/01/15 2			275,000			282,563
						1,626,063
Health facilities — 5.93%
Apria Healthcare Group I
11.250%, due 11/01/14 1,2			1,560,000			1,680,900
12.375%, due 11/01/14 1,2			500,000			538,750
Biomet, Inc.
10.000%, due 10/15/17 2			1,250,000			1,365,625
Community Health Systems
8.875%, due 07/15/15 2			1,575,000			1,630,125
HCA, Inc.
9.125%, due 11/15/14 2			1,805,000			1,897,506
US Oncology, Inc.
9.125%, due 08/15/17 2			500,000			518,750
						7,631,656

Managed High Yield Plus Fund Inc.
Schedule of investments — February 28, 2010 (unaudited)

			Face
Security description			amount ($)			Value ($)
Corporate bonds — (continued)
Health services — 0.42%
Prospect Medical Holdings, Inc.
12.750%, due 07/15/14 2			500,000			540,000
Hotels — 0.19%
Host Hotels & Resorts LP
9.000%, due 05/15/17 1,2			235,000			251,450
Household & leisure products — 0.51%
ACCO Brands Corp.
10.625%, due 03/15/15 1,2			100,000			108,700
Sealy Mattress Co.
10.875%, due 04/15/16 1,2			500,000			546,250
						654,950
Insurance-life — 0.85%
American General Institutional Capital A
7.570%, due 12/01/45 1,2			480,000			386,400
Lincoln National Corp.
7.000%, due 05/17/66 2,3			500,000			426,900
MetLife Capital Trust X
9.250%, due 04/08/38 1,2,3			250,000			277,500
						1,090,800
Leisure — 1.40%
Royal Caribbean Cruises Ltd.
6.875%, due 12/01/13 2			1,000,000			995,000
7.500%, due 10/15/27 2			950,000			807,500
						1,802,500
Machinery — 0.21%
CPM Holdings, Inc.
10.625%, due 09/01/14 1,2			250,000			265,000
Media-broadcast — 3.18%
Clear Channel Communications, Inc.
7.250%, due 10/15/27 2			195,000			90,675
10.750%, due 08/01/16 2			300,000			229,500
Clear Channel Worldwide Holdings, Inc.
9.250%, due 12/15/17 1,2			195,000			200,063
LIN Television Corp.
6.500%, due 05/15/13 2			1,545,000			1,463,887
Salem Communications Corp.
9.625%, due 12/15/16 1,2			225,000			232,312
Sinclair Television Group
8.000%, due 03/15/12 2			1,250,000			1,228,125
9.250%, due 11/01/17 1,2			100,000			103,750
Univision Communications, Inc.
12.000%, due 07/01/14 1,2			500,000			541,250
						4,089,562
Media-cable — 0.73%
CSC Holdings LLC
8.625%, due 02/15/19 1,2			200,000			216,000
Virgin Media Finance PLC
9.125%, due 08/15/16 2			500,000			516,250
9.500%, due 08/15/16 2			200,000			212,000
						944,250

Managed High Yield Plus Fund Inc.
Schedule of investments — February 28, 2010 (unaudited)

			Face
Security description			amount ($)			Value ($)
Corporate bonds — (continued)
Media-services — 1.19%
Affinion Group, Inc.
10.125%, due 10/15/13 2			750,000			757,500
Nielsen Finance LLC
11.625%, due 02/01/14 2			125,000			139,219
WMG Acquisition Corp.
9.500%, due 06/15/16 1,2			600,000			630,000
						1,526,719
Metals/mining excluding steel — 1.55%
Murray Energy Corp.
10.250%, due 10/15/15 1,2			225,000			225,281
Teck Resources Ltd.
10.250%, due 05/15/16 2			1,020,000			1,216,350
10.750%, due 05/15/19 2			450,000			553,500
						1,995,131
Multi-line insurance — 1.15%
Genworth Financial, Inc.
6.150%, due 11/15/66 2,3			1,150,000			796,375
Glen Meadow Pass Through Trust
6.505%, due 02/12/67 1,2,3			250,000			194,063
Hartford Financial Services Group
8.125%, due 06/15/38 2,3			500,000			487,500
						1,477,938
Non-food & drug retailers — 2.89%
Bon-Ton Department Stores, Inc.
10.250%, due 03/15/14 2			150,000			134,625
Dollar General Corp.
10.625%, due 07/15/15 2			417,000			456,615
Freedom Group, Inc.
10.250%, due 08/01/15 1,2			790,000			837,400
Limited Brands, Inc.
7.600%, due 07/15/37 2			450,000			400,500
Macy’s Retail Holdings, Inc.
7.450%, due 07/15/17 2			350,000			357,875
Susser Holdings & Finance LLC
10.625%, due 12/15/13 2			500,000			518,750
Toys R Us Property Co. LLC
8.500%, due 12/01/17 1,2			285,000			287,850
Yankee Acquisition Corp., Series B
8.500%, due 02/15/15 2			400,000			400,000
9.750%, due 02/15/17 2			330,000			329,175
						3,722,790

Managed High Yield Plus Fund Inc.
Schedule of investments — February 28, 2010 (unaudited)

			Face
Security description			amount ($)			Value ($)
Corporate bonds — (continued)
Oil field equipment & services — 2.00%
Aquilex Holding/Aquilex Finance Corp.
11.125%, due 12/15/16 1,2			100,000			104,500
Edgen Murray Corp.
12.250%, due 01/15/15 1,2			225,000			202,500
Expro Finance Luxembourg
8.500%, due 12/15/16 1,2			295,000			293,525
Geokinetics Holdings, Inc.
9.750%, due 12/15/14 1,2			290,000			276,950
Key Energy Services, Inc.
8.375%, due 12/01/14 2			1,000,000			990,000
McJunkin Red Man Corp.
9.500%, due 12/15/16 1,2			710,000			711,775
						2,579,250
Oil refining & marketing — 0.40%
Tesoro Corp.
9.750%, due 06/01/19 2			500,000			513,750
Packaging — 4.42%
Berry Plastics Escrow LLC
8.250%, due 11/15/15 1			225,000			222,187
8.875%, due 09/15/14 1			175,000			168,438
Exopack Holding Corp.
11.250%, due 02/01/14 2			3,425,000			3,540,594
Graham Packaging Co. LP
9.875%, due 10/15/14 2			950,000			969,000
Solo Cup/Solo Cup Operating Corp.
10.500%, due 11/01/13			750,000			785,625
						5,685,844
Personal & casualty — 0.41%
Liberty Mutual Group, Inc.
10.750%, due 06/15/58 1,2,3			485,000			523,800
Pharmaceuticals — 2.02%
Axcan Intermediate Holdings, Inc.
12.750%, due 03/01/16 2			2,200,000			2,381,500
Elan Finance PLC/Elan Finance Corp.
8.750%, due 10/15/16 1,2			225,000			218,250
						2,599,750
Printing & publishing — 4.25%
Cengage Learning Acquisitions, Inc.
10.500%, due 01/15/15 1,2			225,000			205,031
Harland Clarke Holdings
9.500%, due 05/15/15 2			1,750,000			1,596,875
Hollinger, Inc.
12.875%, due 03/01/11 6,7,8,9 *			975,000			0
McClatchy Co.
11.500%, due 02/15/17 1,2			350,000			341,250
Sheridan Acquisition Corp.
10.250%, due 08/15/11 2			3,500,000			3,325,000
						5,468,156

Managed High Yield Plus Fund Inc.
Schedule of investments — February 28, 2010 (unaudited)

			Face
Security description			amount ($)			Value ($)
Corporate bonds — (continued)
Real estate development & managment — 0.60%
CB Richard Ellis Services, Inc.
11.625%, due 06/15/17 2			250,000			275,625
Realogy Corp.
10.500%, due 04/15/14 2			450,000			375,750
12.375%, due 04/15/15 2			170,000			116,450
						767,825
Real estate investment trusts — 0.37%
DuPont Fabros Technology LP
8.500%, due 12/15/17 1,2			475,000			482,125
Restaurants — 0.32%
Landry’s Restaurants, Inc.
11.625%, due 12/01/15 1,2			400,000			418,000
Software/services — 4.56%
First Data Corp.
9.875%, due 09/24/15 2			1,975,000			1,693,375
GXS Worldwide, Inc.
9.750%, due 06/15/15 1,2			325,000			308,750
Sungard Data Systems, Inc.
10.250%, due 08/15/15 2			2,000,000			2,075,000
Terremark Worldwide, Inc.
12.000%, due 06/17/17 1,2			1,000,000			1,097,500
Unisys Corp.
12.750%, due 10/15/14 1,2			600,000			693,000
						5,867,625
Steel producers/products — 1.75%
Ryerson, Inc.
12.000%, due 11/01/15 2			2,000,000			2,055,000
Severstal Columbus LLC
10.250%, due 02/15/18 1,2			200,000			200,500
						2,255,500
Support-services — 8.73%
Cenveo Corp.
8.875%, due 02/01/18 1,2			1,250,000			1,237,500
Hertz Corp.
10.500%, due 01/01/16 2			2,000,000			2,070,000
Iron Mountain, Inc.
8.375%, due 08/15/21 2			525,000			538,781
Mobile Services/Storage Group
9.750%, due 08/01/14 2			3,000,000			3,075,000
Reliance Intermediate Holdings LP
9.500%, due 12/15/19 1,2			700,000			732,375
Sunstate Equipment Co.
10.500%, due 04/01/13 1,2			3,500,000			3,080,000
West Corp.
11.000%, due 10/15/16 2			500,000			501,250
						11,234,906

Managed High Yield Plus Fund Inc.
Schedule of investments — February 28, 2010 (unaudited)

			Face
Security description			amount ($)			Value ($)
Corporate bonds — (concluded)
Technology — 0.37%
Equinix, Inc.
8.125%, due 03/01/18			475,000			475,000
Telecom-integrated/services — 5.34%
Frontier Communications
9.000%, due 08/15/31 2			3,420,000			3,317,400
Global Crossing UK Finance PLC
10.750%, due 12/15/14 2			500,000			510,000
Intelsat Bermuda Ltd.
11.250%, due 02/04/17 10			500,000			506,875
Intelsat Jackson Holdings Ltd.
11.250%, due 06/15/16 2			1,225,000			1,307,687
Level 3 Financing, Inc.
9.250%, due 11/01/14 2			225,000			213,188
10.000%, due 02/01/18 1,2			150,000			137,625
PAETEC Holding Corp.
8.875%, due 06/30/17			250,000			251,875
Qwest Communications International,
7.125%, due 04/01/18 1,2			25,000			25,000
Series B
7.500%, due 02/15/14 2			600,000			606,000
						6,875,650
Telecom-wireless — 4.35%
Clearwire Communications LLC/Finance
12.000%, due 12/01/15 1,2			995,000			972,613
Cricket Communications, Inc.
10.000%, due 07/15/15 2			605,000			612,562
Nextel Communications,
Series D
7.375%, due 08/01/15 2			1,750,000			1,614,375
Series E
6.875%, due 10/31/13 2			250,000			240,000
Sprint Capital Corp.
8.750%, due 03/15/32 2			625,000			551,562
Wind Acquisition Finance SA
11.750%, due 07/15/17 1,2			500,000			535,000
12.000%, due 12/01/15 1,2			1,000,000			1,070,000
						5,596,112
Telecommunications equipment — 0.35%
Sorenson Communications, Inc.
10.500%, due 02/01/15 1,2			500,000			455,625
Transportation excluding air/rail — 0.72%
Marquette Transportation Co./Finance
10.875%, due 01/15/17 1,2			500,000			503,125
Navios Maritime Holdings, Inc./Finance
8.875%, due 11/01/17 1,2			415,000			422,263
						925,388
Total corporate bonds (cost—$145,637,017)						151,733,839

Managed High Yield Plus Fund Inc.
Schedule of investments — February 28, 2010 (unaudited)

			Number of
Security description			shares/units			Value ($)
Common stocks* — 0.12%
Forestry/paper — 0.09%
Ainsworth Lumber Co. Ltd. 2			58,357			115,967
Investments & miscellaneous financial services — 0.00%
NCI Holdings, Inc. 7,9			5,456			0
Media-cable — 0.01%
Knology, Inc. 2			693			7,935
XO Holdings, Inc. 2			1,052			778
						8,713
Oil refining & marketing — 0.00%
Orion Refining Corp. 7,9			1,253			0
Printing & publishing — 0.00%
American Media, Inc. 7,9			43,038			0
Vertis Holdings, Inc. 7,9			109,870			0
						0
Restaurants — 0.00%
American Restaurant Group, Inc. 7,9			129			0
Buffets Restaurants Holdings, Inc. 7,9			8,602			0
						0
Telecom-wireless — 0.02%
American Tower Corp., Class A 2			636			27,132
Total common stocks (cost—$8,666,025)						151,812
Other equity security* — 0.00%
Media-cable — 0.00%
Adelphia Contingent Value Vehicle (cost—$0) 7,9,11			2,000,000			0
			Number of
			warrants
Warrant* — 0.00%
Restaurants — 0.00%
Buffets Restaurants Holdings, Inc., strike @ $22.71,
expires 04/28/14 (cost—$0) 7,9			3,800			0
			Face
			amount ($)
Repurchase agreement — 1.36%
Repurchase agreement dated 02/26/10 with State
Street Bank & Trust Co., 0.010% due 03/01/10,
collateralized by $1,799,253 US Treasury Bills,
zero coupon due 05/06/10 to 06/17/10;
(value—$1,778,895); proceeds: $1,744,001
(cost—$1,744,000)			1,744,000			1,744,000
Total investments (cost—$156,047,042) 12 — 119.32%						153,629,651
Liabilities in excess of other assets — (19.32)%						(24,871,711	)
Net assets — 100.00%						128,757,940

Aggregate cost for federal income tax purposes, which was substantially the same for book purposes, was $156,047,042; and net unrealized depreciation consisted of:

Gross unrealized appreciation			$	12,187,034
Gross unrealized depreciation				(14,604,425	)
Net unrealized depreciation			$	(2,417,391	)

*		Non-income producing security.
1		Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 35.13% of net assets as of February 28, 2010, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.
2		Entire or partial amount pledged as collateral for bank loan.
3		Floating rate security. The interest rate shown is the current rate as of February 28, 2010.
4		Perpetual bond security. The maturity date reflects next call date.
5		Variable rate security. The interest rate shown is the current rate as of February 28, 2010, and resets periodically.
6		Bond interest in default.
7		Illiquid securities representing 0.00% of net assets as of February 28, 2010.
8		Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security, which represents 0.00% of net assets as of February 28, 2010, is considered illiquid and may be resold in transactions exempt form registration, normally to qualified institutional buyers.
9		Security is being fair valued by a valuation committee under the direction of the board of directors.
10		Step Bond. Coupon rate increases in increments to maturity. Rate disclosed is as of February 28, 2010. Maturity date indicated represents the instrument’s ultimate maturity date.
11		Represents contingent value vehicle (“CVV”) obligations. The CVV obligations represent units in a trust that was formed pursuant to a Plan of Reorganization of Adelphia Communications Corporation to hold certain litigation claims against Adelphia’s third party lenders, accountants, and other parties.
12		The Fund calculates its net asset value based on the current market value, where available, for its portfolio securities. The Fund normally obtains market values for its securities from independent pricing sources and broker-dealers. Independent pricing sources may use last reported sale prices, official market closing prices, current market quotations or valuations from computerized “matrix” systems that derive values based on comparable securities. A matrix system incorporates parameters such as security quality, maturity and coupon, and/or research and evaluations by its staff, including review of broker-dealer market price quotations, if available, in determining the valuation of the portfolio securities. Securities traded in the over-the-counter (“OTC”) market and listed on The Nasdaq Stock Market, Inc. (“Nasdaq”) normally are valued at the NASDAQ Official Closing Price. Other OTC securities are valued at the last bid price available on the valuation date prior to valuation. Securities which are listed on US and foreign stock exchanges normally are valued at the market close, the last sale price on the day the securities are valued or, lacking any sales on such day, at the last available bid price. In cases where securities are traded on more than one exchange, the securities are valued on the exchange designated as the primary market by UBS Global Asset Management (Americas) Inc. (“UBS Global AM”), the investment manager and administrator of the Fund. UBS Global AM is an indirect wholly owned asset management subsidiary of UBS AG, an internationally diversified organization with headquarters in Zurich and Basel, Switzerland and operations in many areas of the financial services industry. If a market value is not available from an independent pricing source for a particular security, that security is valued at fair value as determined in good faith by or under the direction of the Fund’s Board of Directors (the “Board”). Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; and changes in overall market conditions. Occasionally, events affecting the value of foreign investments occur between the time at which they are determined and the close of the New York Stock Exchange (“NYSE”), which will not be reflected in the computation of the Fund’s net asset value. If events materially affecting the value of such securities occur during such time periods, the securities will be valued at their fair value as determined in good faith by or under the direction of the Board. The amortized cost method of valuation, which approximates market value, generally is used to value short-term debt instruments with sixty days or less remaining to maturity. All investments quoted in foreign currencies will be valued daily in US dollars on the basis of the foreign currency exchange rates prevailing at the time such valuation is determined by the Fund’s custodian. GAAP requires disclosure surrounding the various inputs that are used in determining the value of the Fund’s investments. These inputs are summarized into the three broad levels listed below: Level 1 - Unadjusted quoted prices in active markets for identical investments. Level 2 - Other significant observable inputs, including but not limited to, quoted prices for similar investments, interest rates, prepayment speeds and credit risks. Level 3 - Unobservable inputs inclusive of the Fund’s own assumptions in determining the fair value of investments.

The following is a summary of the fair valuations according to the inputs used as of February 28, 2010 in valuing the Fund’s investments:

		Unadjusted quoted
		prices in active
		markets for identical			Other significant			Unobservable
		investments			observable inputs			inputs
		(Level 1) ($)			(Level 2) ($)			(Level 3) ($) 13			Total ($)
Corporate bonds		—			151,733,839			0			151,733,839
Common stocks		151,812			—			0			151,812
Other equity security		—			—			0			0
Warrant		—			—			0			0
Repurchase agreement		—			1,744,000			—			1,744,000
Total		151,812			153,477,839			0			153,629,651

13		Securities categorized as Level 3 have values of $0.
The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) during the nine months ended February 28, 2010:

								Other
		Corporate			Common			equity
		bonds ($)			stocks ($)			security ($)			Warrant ($)			Total ($)
Beginning balance		10,908			0			0			0			10,908
Net purchases/(sales)		(471,754	)		—			—			—			(471,754	)
Accrued
discounts/(premiums)		(5,947	)		—			—			—			(5,947	)
Total realized gain/(loss)		(4,924,192	)		—			—			(46,550	)		(4,970,742	)
Net change in unrealized
appreciation/depreciation		5,390,985			—			—			46,550			5,437,535
Net transfers in/(out)
of Level 3		—			—			—			—			—
Ending balance		0			0			0			0			0

The change in unrealized appreciation/depreciation relating to the Level 3 investments held at February 28, 2010 was $5,947.

GMAC		General Motors Acceptance Corporation
MTN		Medium Term Note

Issuer breakdown by country or territory of origin
Percentage of total investments (%)
United States		92.3
United Kingdom		1.9
Canada		1.7
Luxembourg		1.2
Bermuda		1.2
Liberia		1.2
Marshall Islands		0.3
Ireland		0.1
Netherlands		0.1
Total		100.0

For more information regarding the Fund’s other significant accounting policies, please refer to the Fund’s semiannual report to shareholders dated November 30, 2009.