(Source: Business Wire)
Investment Grade Municipal Income Fund Inc. (the "Fund") (NYSE: PPM), a
closed-end management investment company normally investing
substantially all of its assets in a diversified portfolio of tax-exempt
municipal obligations, with common and preferred shares outstanding,
today announced that the Fund's Board of Directors has declared a
dividend from net investment income of $0.0725 per share of common
stock. The dividend is payable on October 30, 2009 to common
shareholders of record as of October 22, 2009. The ex-dividend date is
October 20, 2009. Under normal circumstances, the Fund invests at least
80% of its net assets in investment grade municipal obligations, the
income from which is exempt from regular federal income tax.
Fund Commentary for the month of September 2009 from UBS Global Asset
Management (Americas) Inc. ("UBS Global AM"), the Fund's investment
advisor
The Barclays Capital Municipal Bond Indexgained
3.59%inSeptember,outperformingUS Treasuries during the month.During
this time, BBB-rated and A-rated securities outperformed their AA- and
AAA- rated counterparts as lower-quality municipal bonds rallied. At the
same time,longer-maturity municipals outperformed intermediate-maturity
and shorter-maturity municipals significantly.
The Fund significantly outperformed its benchmark in September, due to a
relative underweight to shorter-term maturity issues. In addition, an
overweight to the long end (20+ years) of the yield curve benefited
performance. From a credit quality perspective, the Fund's overweight to
AA-rated securities detracted from relative performance, while a
significant underweight to AAA-rated securities helped relative
performance during the month.
Aslight relativeunderweight to both the IDR/PCR(industrial
development revenue bonds and pollution control revenue bonds)
sectorand the tobacco sectorhurt relative performance, especially as
tobacco was the best-performing sector for the month. In addition, an
overweight to hospitals benefited relative performance. The Fund's use
of leverage benefited results, magnifying the impact of
strongperformance during the month.
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 September 30, 2009(1)
Top ten states Percentage of total investments
California 13.3%
Texas 12.6
Illinois 8.9
New York 8.0
Washington 6.8
North Carolina 5.8
Michigan 5.2
South Carolina 5.1
Ohio 4.8
New Jersey 4.8
Total 75.3%
Yields(2)
NAV yield 5.78%
Market yield 6.07%
Top five sectors Percentage of total investments
University 15.9%
Hospital 15.2
Airport 12.4
Power 11.5
Lease 8.0
Total 63.0%
Credit quality(3)
AAA 12.5%
AA 36.0
A 23.6
BBB 16.1
A-1+ 0.3
Nonrated 11.5
Total 100.0%
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Portfolio statistics as of September 30, 2009 continued(1)
Characteristics
Net asset value per share(2) $15.06
Market price per share(2) $14.34
Weighted average maturity 14.81 years
Weighted average modified duration (4) 5.14 years
Weighted average coupon(5) 5.65%
Subject to Alternative Minimum Tax (AMT) 14.92%
Leverage(6) 39.0%
Stated maturity schedule Percentage of total investments
2009 0.3%
2010 0.0
2011 0.0
2012 0.0
2013 0.6
2014 -- 2024 56.7
2025 -- 2045 42.4
Total 100.0%
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1 The Fund is actively managed and its portfolio composition
will vary over time.
2 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.
3 Credit quality ratings shown are based on those assigned by
Standard & Poor's ("S&P"), a division of The McGraw-Hill Companies, Inc.
S&P is an independent rating agency.
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 Includes leverage attributable to both the Fund's Auction
Preferred Shares and the Tender Option Bond Program as a percentage of
total assets. Leverage may vary.
A service of YellowBrix, Inc.
