- Reports Mailed to Shareholders (registered investment company) (N-30B-2)

P ACHOLDER H IGH Y IELD F UND, I NC.

Directors and Officers

Fergus Reid, III

Chairman and Director

William J. Armstrong

Director

John F. Finn

Director

Dr. Matthew Goldstein

Director

Robert J. Higgins

Director

Frankie D. Hughes

Director

Peter C. Marshall

Director

Marilyn McCoy

Director

William G. Morton, Jr.

Director

Robert A. Oden, Jr.

Director

Frederick W. Ruebeck

Director

James J. Schonbachler

Director

Leonard M. Spalding, Jr.

Director

George C.W. Gatch

President

Robert L. Young

Senior Vice President

Patricia A. Maleski

Vice President, Chief Administrative Officer and Treasurer

Stephen M. Ungerman

Chief Compliance Officer

Frank J. Nasta

Secretary

Investment Objective

A closed-end fund seeking a high level of total return

through current income and capital appreciation by

investing primarily in high-yield, fixed income securities

of domestic companies.

Investment Advisor

J.P. Morgan Investment Management Inc.

Administrator

JPMorgan Funds Management, Inc.

Custodian

JPMorgan Chase Bank, N.A.

Transfer Agent

Computershare Investor Services, LLC

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

Independent Directors’ Counsel

Kramer Levin Naftalis & Frankel LLP

Executive Offices

Pacholder High Yield Fund, Inc.

245 Park Avenue

New York, NY 10167

Shareholder Services

(877) 217-9502

Please visit our web site, www.phf-hy.com , for information on the Fund’s NAV, share price, news releases, and SEC filings. We created this site to provide stockholders quick and easy access to the timeliest information available regarding the Fund.

This report is for the information of stockholders of Pacholder High Yield Fund, Inc. It is not a prospectus, offering circular or other representation intended for use in connection with the purchase or sale of shares of the Fund or any securities mentioned in this report.

P ACHOLDER H IGH Y IELD F UND , I NC .

F IRST Q UARTER

M ARCH 31, 2010

(U NAUDITED )

P ACHOLDER H IGH Y IELD F UND, I NC.

(Unaudited)

Dear Stockholders:

First Quarter Review

Despite concerns about deterioration in European sovereign debt markets, higher volatility and an uncertain regulatory environment, high-yield bonds had another strong quarter, propelled by better-than-expected corporate earnings, accelerating GDP growth, robust capital markets conditions, and improving default trends.

For the quarter ended March 31, 2010, the Pacholder High Yield Fund, Inc. (the “Fund”) returned 8.09% based on Net Asset Value (“NAV”) compared to the 6.02% average total return of the Morningstar Closed–End High Yield Category, and the 4.47% return of the Credit Suisse High Yield Index, Developed Countries Only (the “Index”).

The Fund’s relative outperformance in the first quarter was driven by the leverage the Fund obtained through its Auction Rate Preferred Shares (“ARPS”). Other contributors to outperformance included the transportation, media/telecom, and consumer products market segments. Performance in the energy, housing, and metals/minerals segments detracted from the overall performance.

According to Moody’s, the global high yield default rate ended the quarter at 9.9%, compared to 12.5% in the fourth quarter 2009. Moody’s predicts that the global default rate will decline to 2.8% in 2010.

The Fund is well diversified, with investments in 456 securities in 59 different industries. As of March 31, 2010, the Fund’s largest industry sector concentration was in media, which accounted for 8.36% of its market value. For the quarter, the average price of the securities in the index rose 3.73 points from 93.35 to 97.08, (calculated to the worst call date), the average yield (calculated to the worst call date) dropped 50 basis points (bps) from 8.72% to 8.22% and the spread over the comparable Treasury tightened 42 bps from 634 bps to 592 bps.

Auction Rate Preferred Shares and Dividend

Since February 2008, most auctions for preferred shares of closed-end funds and auction rate securities of other issuers failed. The weekly auction for the Fund’s ARPS failed since February 13, 2008. Since that time, a number of broker-dealers announced that they will offer to repurchase auction rate securities from certain clients. Any action taken by the Fund to provide liquidity to the ARPS must be in the best interest of the Fund as a whole.

From January 2009 to February 2010, the Fund paid a monthly dividend of $0.055 per common share. Beginning with the March 2010 dividend, the Board of Directors authorized the Fund to increase the amount of monthly dividends from $0.055 to $0.060 per common share. The Fund anticipates paying a monthly dividend of $0.060, subject to market conditions and the requirement that the Fund maintain an asset coverage of at least 200% of the ARPS after payment of dividends.

Fund Strategy

Despite substantial price appreciation in the high yield market during the 2009 rally, we continue to believe that this market has favorable near-term return potential, driven by cyclical spread tightening as defaults decline. We have been selectively adding to our holdings in lower-rated and more cyclical issuers when our fundamental analysis indicates attractive risk/reward opportunities. We also believe that there are attractive opportunities in bonds that have the prospect of being upgraded from high yield to investment grade.

As always, we appreciate your interest in the Fund and look forward to your continued support.

Sincerely,

LOGO

George C.W. Gatch

President

May 12, 2010

The performance quoted is past performance and is not a guarantee of future results. Closed-end funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown.

J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. Those businesses include, but are not limited to, J.P. Morgan Investment Management Inc., Security Capital Research & Management Incorporated and J.P. Morgan Alternative Asset Management, Inc.

P ACHOLDER H IGH Y IELD F UND, I NC.

(Unaudited)

Securities rated below investment grade are called “high-yield bonds,” “non-investment grade bonds,” “below investment-grade bonds,” or “junk bonds.” They generally are rated in the fifth or lower rating categories of Standard & Poor’s and Moody’s Investors Service. Although these securities tend to provide higher yields than higher rated securities, there is a greater risk that the Fund’s share value will decline. Because this Fund primarily invests in bonds, it is subject to interest rate risks. Bond prices generally fall when interest rates rise.

Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting and legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative

purposes only and are not to be relied upon as advice or interpreted as a recommendation.

Portfolio Holdings Availability

No sooner than 10 days after the end of each month, the Fund’s uncertified complete schedule of its portfolio holdings will be available on our website (www.phf-hy.com). In addition, the Fund files its certified, complete schedule of its portfolio holdings with the U.S. Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Qs are available, without charge, on the SEC’s website at www.sec.gov. The Fund’s Form N-Qs may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

No sooner than 10 calendar days after the end of each month, the Fund’s top ten holdings as of the last day of each month as well as certain other fund facts and statistical information will also be available on the Fund’s website.

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments

As of March 31, 2010 (Unaudited)


Description	Par (000)			Value		Percent of Net Assets ^*

CORPORATE BONDS — 102.2%
CONSUMER DISCRETIONARY — 29.0%
AUTO COMPONENTS — 1.5%
Affinia Group, Inc., Nt, 9.000%, 11/30/14	$	425		$	422,875	0.4	%
American Tire Distributors, Inc., Nt, 10.750%, 04/01/13		435			409,444	0.4
DPH Holdings Corp., 7.125%, 05/01/29 ^1,4		725			23,563	0.0	¹²
UCI Holdco, Inc., Sr Nt, PIK, 8.257%, 12/15/13		512			480,868	0.5
United Components, Inc., Sr Nt, 9.375%, 06/15/13		250			251,250	0.2

					1,588,000	1.5
AUTOMOBILES — 2.5%
Ford Holdings LLC,
9.300%, 03/01/30		112			112,560	0.1
9.375%, 03/01/20 ¹⁰		150			156,000	0.2
Ford Motor Co.,
7.750%, 06/15/43		750			626,250	0.6
8.900%, 01/15/32		125			118,906	0.1
Ford Motor Co., Nt, 9.980%, 02/15/47		125			129,688	0.1
Motors Liquidation Co.,
0.000%, 03/15/36 ^1,4		55			10,312	0.0	¹²
5.250%, 03/06/32		25			214,503	0.2
6.250%, 07/15/33		15			128,523	0.1
7.250%, 04/15/41		—	¹¹		1,761	0.0	¹²
7.250%, 07/15/41		—	¹¹		765	0.0	¹²
7.250%, 02/15/52		7			60,673	0.1
7.375%, 05/15/48		10			80,241	0.1
7.375%, 10/01/51		—	¹¹		2,028	0.0	¹²
Motors Liquidation Co., Debentures,
6.750%, 05/01/28 ^1,4		50			17,500	0.0	¹²
8.100%, 06/15/24 ^1,4		1,725			612,375	0.6
8.375%, 07/15/33 ^1,4		425			159,375	0.1
Navistar International Corp., 8.250%, 11/01/21		225			229,500	0.2

					2,660,960	2.5
BROADCASTING & CABLE TV — 2.6%
Adelphia Communications Corp., 6.000%, 02/15/06 ^1,4		125			—	0.0
Adelphia Communications Corp., Sr Nt,
8.125%, 07/15/03 ^1,4		750			9,375	0.0	¹²
9.375%, 11/15/09 ^1,4		560			7,000	0.0	¹²
Adelphia Recovery Trust, Contingent Value ^1,4		1,297			45,391	0.0	¹²


Description	Par (000)		Value		Percent of Net Assets ^*

BROADCASTING & CABLE TV (continued)
CCO Holdings LLC/CCO Holdings Capital Corp., 8.750%, 11/15/13	$	265	$	271,625	0.3	%
Charter Communications Operating LLC/Charter Communications Operating Capital, Private Placement, Nt, 10.875%, 09/15/14 ²		300		335,625	0.3
Mediacom LLC / Mediacom Capital Corp., Private Placement, 9.125%, 08/15/19 ²		156		160,875	0.1
Sirius XM Radio, Inc., Private Placement, 8.750%, 04/01/15 ^2,6		180		179,325	0.2
Telesat Canada/Telesat LLC, (Canada),
11.000%, 11/01/15		286		318,175	0.3
12.500%, 11/01/17 ¹⁰		150		172,500	0.2
UPC Germany GmbH, Private Placement, (Germany), 8.125%, 12/01/17 ²		150		154,688	0.1
Virgin Media Finance plc, (United Kingdom), 8.375%, 10/15/19		225		231,188	0.2
Virgin Media Finance plc, Sr Nt, (United Kingdom), 9.125%, 08/15/16		450		478,125	0.4
XM Satellite Radio, Inc., Private Placement, Sr Nt, 13.000%, 08/01/13 ²		430		484,287	0.5

				2,848,179	2.6
DISTRIBUTORS — 0.2%
McJunkin Red Man Corp., Private Placement, Sr Nt, 9.500%, 12/15/16 ²		200		204,250	0.2

Diversified Consumer Services — 1.5%
Knowledge Learning Corp., Inc., Private Placement, Sr Sub Nt, 7.750%, 02/01/15 ^2,10		700		679,000	0.6
Mac-Gray Corp., Sr Nt, 7.625%, 08/15/15 ¹⁰		650		637,813	0.6
Sotheby’s, 7.750%, 06/15/15		250		254,062	0.3

				1,570,875	1.5
GAMING — 4.9%
Chukchansi Economic Development Authority, Private Placement, 8.000%, 11/15/13 ²		766		628,120	0.6
Harrah’s Operating Co., Inc.,
10.000%, 12/15/18 ⁶		650		537,875	0.5
11.250%, 06/01/17		250		269,375	0.3
Isle of Capri Casinos, Inc., Sr Nt, 7.000%, 03/01/14		400		342,000	0.3

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments (continued)

As of March 31, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets ^*

GAMING (continued)
Mandalay Resort Group, Sr Nt, 6.375%, 12/15/11	$	500	$	478,750	0.4	%
Mashantucket Western Pequot Tribe, Private Placement,
5.912%, 09/01/21 ²		475		290,937	0.3
8.500%, 11/15/15 ^1,2,4		820		205,000	0.2
MGM Mirage, Co. Guar, 7.625%, 01/15/17 ⁶		150		124,875	0.1
MGM Mirage, Private Placement,
9.000%, 03/15/20 ²		125		128,750	0.1
11.375%, 03/01/18 ^2,6		250		241,250	0.2
MGM Mirage, Sr Nt, 6.750%, 09/01/12 ⁶		172		162,540	0.2
Midwest Gaming Borrower LLC / Midwest Finance Corp., Private Placement, 11.625%, 04/15/16 ²		100		98,941	0.1
San Pasqual Casino, Private Placement, 8.000%, 09/15/13 ²		500		480,625	0.4
Seminole Hard Rock Entertainment, Inc., Private Placement, VAR, 2.757%, 03/15/14 ²		500		445,000	0.4
Shingle Springs Tribal Gaming Authority, Private Placement, Sr Nt, 9.375%, 06/15/15 ^2,10		1,000		830,000	0.8

				5,264,038	4.9
HOTELS, RESTAURANTS & LEISURE — 1.8%
Real Mex Restaurants, Inc., 14.000%, 01/01/13		200		195,000	0.2
Royal Caribbean Cruises Ltd., (Liberia), 6.875%, 12/01/13		28		28,280	0.0	¹²
Royal Caribbean Cruises Ltd., Sr Nt, (Liberia), 11.875%, 07/15/15		231		272,002	0.3
Six Flags Operations, Inc., Private Placement, 12.250%, 07/15/16 ^1,2,4		872		1,020,240	1.0
Speedway Motorsports, Inc., Sr Nt, 8.750%, 06/01/16		300		319,500	0.3
Universal City Development Partners Ltd., Private Placement, 8.875%, 11/15/15 ²		35		35,263	0.0	¹²
Universal City Development Partners Ltd., Private Placement, Sr Nt, 10.875%, 11/15/16 ²		40		41,800	0.0	¹²

				1,912,085	1.8


Description	Par (000)		Value		Percent of Net Assets ^*

HOUSEHOLD DURABLES — 1.4%
K Hovnanian Enterprises, Inc., Sr Nt, 10.625%, 10/15/16	$	475	$	505,875	0.5	%
KB Home, Sr Nt, 5.875%, 01/15/15		250		236,875	0.2
M/I Homes, Inc., Sr Nt, 6.875%, 04/01/12		260		252,200	0.3
Meritage Homes Corp., Sr Nt, 7.000%, 05/01/14		250		246,875	0.2
Standard Pacific Corp., 7.000%, 08/15/15		130		120,250	0.1
Standard Pacific Corp., Sr Nt, 6.250%, 04/01/14		139		128,227	0.1

				1,490,302	1.4
LEISURE EQUIPMENT & PRODUCTS — 0.9%
Da-Lite Screen Co., Inc., Private Placement, Sr Nt, 12.500%, 04/01/15 ²		375		378,750	0.4
Eastman Kodak Co., Private Placement, 9.750%, 03/01/18 ²		365		361,350	0.3
FGI Holding Co., Inc., Private Placement, Sr Nt, PIK, 11.250%, 10/01/15 ²		225		220,500	0.2

				960,600	0.9
MEDIA — 6.2%
Barrington Broadcasting Group LLC and Barrington Broadcasting Capital Corp., Sr Sub Nt, 10.500%, 08/15/14		700		616,000	0.6
Block Communications, Inc., Private Placement, Sr Nt, 8.250%, 12/15/15 ^2,10		800		800,000	0.8
Clear Channel Worldwide Holdings, Inc., Private Placement, Sr Nt,
9.250%, 12/15/17 ²		625		652,344	0.6
Fisher Communications, Inc., Sr Nt, 8.625%, 09/15/14		500		491,250	0.5
Gannett Co., Inc., Private Placement, 9.375%, 11/15/17 ²		135		144,281	0.1
Inmarsat Finance plc, Private Placement, (United Kingdom), 7.375%, 12/01/17 ²		100		104,000	0.1
Intelsat Intermediate Holding Co. S.A., (Bermuda), 9.500%, 02/01/15 ⁷		200		207,000	0.2
Intelsat Jackson Holdings S.A., Nt, (Bermuda), 11.250%, 06/15/16		85		92,012	0.1
Intelsat Jackson Holdings S.A., Private Placement, Sr Nt, (Bermuda), 8.500%, 11/01/19 ²		150		157,500	0.1
Intelsat Luxembourg S.A., (Bermuda),
11.250%, 02/04/17 ⁷		575		608,063	0.6
PIK, 11.500%, 02/04/17		138		141,578	0.1

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments (continued)

As of March 31, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets ^*

MEDIA (continued)
Intelsat Subsidiary Holding Co. S.A., (Bermuda), 8.875%, 01/15/15 ¹⁰	$	750	$	774,375	0.7	%
Lamar Media Corp., Sr Sub Nt, 6.625%, 08/15/15		125		120,156	0.1
McClatchy Co. (The), Private Placement, 11.500%, 02/15/17 ²		60		61,275	0.1
Media General, Inc., Private Placement, 11.750%, 02/15/17 ²		400		395,500	0.4
Nexstar Finance Holdings LLC/Nexstar Finance Holdings, Inc., Sr Disc Nt, 11.375%, 04/01/13 ⁷		479		427,852	0.4
Radio One, Inc., Sr Sub Nt, 6.375%, 02/15/13		500		410,625	0.4
Salem Communications Corp., Nt, 9.625%, 12/15/16		125		130,625	0.1
WMG Holdings Corp., Nt, 9.500%, 12/15/14 ^6,7		250		251,875	0.2

				6,586,311	6.2
MULTILINE RETAIL — 0.4%
Dollar General Corp., PIK, 11.875%, 07/15/17		69		80,385	0.1
HSN, Inc., 11.250%, 08/01/16		323		366,605	0.3

				446,990	0.4
SPECIALTY RETAIL — 3.9%
Blockbuster, Inc., Private Placement, 11.750%, 10/01/14 ^2,6		400		295,000	0.3
Burlington Coat Factory Investment Holdings, Inc., 14.500%, 10/15/14 ⁷		200		212,000	0.2
Collective Brands, Inc., 8.250%, 08/01/13		445		453,900	0.4
General Nutrition Centers, Inc., PIK, 5.750%, 03/15/14		461		436,221	0.4
KAR Auction Services, Inc., Sr Nt, 10.000%, 05/01/15		4		4,200	0.0	¹²
Michael’s Stores, Inc., Sr Nt,
0.000%, 11/01/16 ⁷		750		663,750	0.6
11.375%, 11/01/16 ⁶		325		351,000	0.4
NBC Acquisition Corp., 11.000%, 03/15/13 ⁷		280		251,300	0.2
Nebraska Book Co., Inc.,
8.625%, 03/15/12 ¹⁰		365		345,838	0.3
10.000%, 12/01/11		95		98,087	0.1
PEP Boys-Manny Moe & Jack, Sr Nt, 7.500%, 12/15/14		500		477,500	0.4


Description	Par (000)		Value		Percent of Net Assets ^*

SPECIALTY RETAIL (continued)
Toys R Us Property Co. LLC, Private Placement, Sr Sec’d Nt, 8.500%, 12/01/17 ²	$	285	$	295,688	0.3	%
Toys R Us, Inc., 7.875%, 04/15/13		300		307,500	0.3

				4,191,984	3.9
TEXTILES, APPAREL & LUXURY GOODS — 1.2%
Broder Brothers Co., Private Placement, PIK, 12.000%, 10/15/13 ^2,3,9		399		327,131	0.3
Hanesbrands, Inc., Sr Nt, VAR, 3.831%, 12/15/14		500		477,500	0.5
Quiksilver, Inc., 6.875%, 04/15/15		500		462,500	0.4

				1,267,131	1.2

Total Consumer Discretionary				30,991,705	29.0

CONSUMER STAPLES — 5.4%
BEVERAGES — 0.3%
Constellation Brands, Inc., Sr Nt, 8.375%, 12/15/14		315		340,594	0.3

FOOD & STAPLES RETAILING — 2.3%
Golden State Foods Corp., Private Placement, Sr Sub Nt, 9.240%, 01/10/12 ^2,3,8,9		1,550		1,565,500	1.5
Ingles Markets, Inc., 8.875%, 05/15/17		190		198,550	0.2
Rite Aid Corp., Debentures, 7.500%, 03/01/17		600		556,500	0.5
Tops Markets LLC, Private Placement, 10.125%, 10/15/15 ²		115		119,600	0.1

				2,440,150	2.3
FOOD PRODUCTS — 1.6%
Chiquita Brands International, Inc., Sr Nt, 8.875%, 12/01/15 ⁶		299		310,212	0.3
Eurofresh, Inc., 15.000%, 11/18/16 ^3,9		345		344,855	0.3
JBS USA LLC/JBS USA Finance, Inc., Private Placement, 11.625%, 05/01/14 ²		325		370,500	0.4
Smithfield Foods, Inc., Nt, 7.750%, 05/15/13 ¹⁰		575		580,750	0.5
Tom’s Foods, Inc., Sr Nt, 10.500%, 11/01/04 ^1,3,4,9		872		8,718	0.0	¹²
TreeHouse Foods, Inc., 7.750%, 03/01/18		100		103,750	0.1

				1,718,785	1.6

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments (continued)

As of March 31, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets ^*

HOUSEHOLD PRODUCTS — 0.6%
Spectrum Brands, Inc., PIK, 12.000%, 08/28/19	$	563	$	596,266	0.6	%

PERSONAL PRODUCTS — 0.2%
Revlon Consumer Products Corp., Private Placement, 9.750%, 11/15/15 ²		155		160,037	0.2

TOBACCO — 0.4%
Alliance One International, Inc., Private Placement, 10.000%, 07/15/16 ²		440		459,800	0.4

Total Consumer Staples				5,715,632	5.4

ENERGY — 7.4%
ENERGY EQUIPMENT & SERVICES — 1.4%
Gibson Energy ULC/GEP Midstream Finance Corp., Nt, Private Placement, (Canada), 10.000%, 01/15/18 ²		180		176,850	0.2
Helix Energy Solutions Group, Inc., Private Placement, 9.500%, 01/15/16 ^2,10		500		515,000	0.5
Key Energy Services, Inc., Sr Nt, 8.375%, 12/01/14		338		341,802	0.3
PHI, Inc., Co. Guar, 7.125%, 04/15/13		483		469,114	0.4

				1,502,766	1.4
OIL, GAS & CONSUMABLE FUELS — 6.0%
Alon Refining Krotz Springs, Inc., 13.500%, 10/15/14		175		168,438	0.2
Antero Resources Finance Corp., Private Placement, Nt, 9.375%, 12/01/17 ²		250		257,500	0.2
Denbury Resources, Inc., 8.250%, 02/15/20		40		42,400	0.0	¹²
El Paso Performance-Linked Trust, Private Placement, Sr Nt, 7.750%, 07/15/11 ^2,10		500		517,638	0.5
El Paso Pipeline Partners Operating Co. LLC, 6.500%, 04/01/20		85		86,038	0.1
Ferrellgas Partners LP / Ferrellgas Partners Finance Corp., Sr Unsecd Nt, 8.625%, 06/15/20		325		325,000	0.3
Forbes Energy Services LLC/Forbes Energy Capital, Inc., 11.000%, 02/15/15		750		705,000	0.7
Forest Oil Corp., Nt, 7.250%, 06/15/19		269		270,345	0.2
Gibson Energy ULC/GEP Midstream Finance Corp., Private Placement, (Canada), 11.750%, 05/27/14 ²		200		219,500	0.2
Holly Corp., Private Placement, 9.875%, 06/15/17 ²		70		72,100	0.1


Description	Par (000)		Value		Percent of Net Assets ^*

OIL, GAS & CONSUMABLE FUELS (continued)
Holly Energy Partners LP/Holly Energy Finance Corp., Private Placement, 8.250%, 03/15/18 ²	$	130	$	131,625	0.1	%
Linn Energy LLC/Linn Energy Finance Corp., Private Placement, 8.625%, 04/15/20 ²		125		125,156	0.1
NFR Energy LLC/NFR Energy Finance Corp., Private Placement, 9.750%, 02/15/17 ²		200		200,000	0.2
Parker Drilling Co., Private Placement, 9.125%, 04/01/18 ²		50		51,187	0.0	¹²
Pioneer Drilling Co., Private Placement, 9.875%, 03/15/18 ²		120		118,800	0.1
Plains Exploration & Production Co., 7.625%, 04/01/20		100		99,000	0.1
Range Resources Corp., 7.250%, 05/01/18		25		25,656	0.0	¹²
Range Resources Corp., Sr Sub Nt, 7.500%, 05/15/16		267		275,010	0.3
Suburban Propane Partners LP/Suburban Energy Finance Corp., 7.375%, 03/15/20		65		66,056	0.1
Swift Energy Co., Sr Nt, 7.125%, 06/01/17 ¹⁰		1,260		1,197,000	1.1
Targa Resources Partners LP/Targa Resources Partners Finance Corp., 8.250%, 07/01/16		280		286,300	0.3
W&T Offshore, Inc., Private Placement, Sr Nt, 8.250%, 06/15/14 ²		500		467,500	0.4
Western Refining, Inc., Private Placement, VAR,
10.750%, 06/15/14 ²		225		202,500	0.2
11.250%, 06/15/17 ²		225		202,500	0.2
Williams Partners LP / Williams Partners Finance Corp., 7.250%, 02/01/17		250		285,397	0.3

				6,397,646	6.0

Total Energy				7,900,412	7.4

FINANCIALS — 12.8%
COMMERCIAL BANKS — 3.2%
BankAmerica Capital II, Nt, Series 2, 8.000%, 12/15/26		30		30,150	0.0	¹²
Barclays Bank plc, Private Placement, (United Kingdom), VAR, 7.434%, 12/15/17 ^2,14		600		591,000	0.6
Capital One Capital V, 10.250%, 08/15/39 ¹⁰		950		1,125,451	1.1

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments (continued)

As of March 31, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets ^*

COMMERCIAL BANKS (continued)
Credit Agricole S.A., Private Placement, (France), VAR, 6.637%, 05/31/17 ^2,14	$	650	$	567,125	0.5	%
Wachovia Capital Trust III, VAR, 5.800%, 03/15/11 ¹⁴		1,260		1,067,850	1.0

				3,381,576	3.2
CONSUMER FINANCE — 3.9%
ACE Cash Express, Inc., Private Placement, Sr Nt, 10.250%, 10/01/14 ^2,3,9		1,000		822,500	0.8
Ford Motor Credit Co. LLC, 8.700%, 10/01/14 ¹⁰		750		813,233	0.7
Ford Motor Credit Co. LLC, Nt, 8.000%, 12/15/16 ¹⁰		700		737,536	0.7
GMAC, Inc.,
6.625%, 05/15/12 ¹⁰		158		159,580	0.2
8.000%, 11/01/31		1,492		1,424,860	1.3
SLM Corp., 8.450%, 06/15/18		264		266,999	0.2

				4,224,708	3.9
DIVERSIFIED FINANCIAL SERVICES — 0.8%
CIT Group, Inc., Nt, 7.000%, 05/01/15		750		699,375	0.7
CNG Holdings, Inc., Private Placement, 12.250%, 02/15/15 ²		140		135,625	0.1

				835,000	0.8
INSURANCE — 4.8%
Crum and Forster Holdings Corp., 7.750%, 05/01/17 ¹⁰		600		594,000	0.6
HUB International Holdings, Inc., Private Placement,
9.000%, 12/15/14 ²		250		242,500	0.2
10.250%, 06/15/15 ^2,10		900		861,750	0.8
Liberty Mutual Group, Inc., Private Placement,
7.500%, 08/15/36 ²		250		241,088	0.2
VAR, 10.750%, 06/15/58 ^2,10		1,870		2,094,400	2.0
Nationwide Mutual Insurance Co., Private Placement,
8.250%, 12/01/31 ²		108		109,402	0.1
9.375%, 08/15/39 ²		175		199,400	0.2
USI Holdings Corp., Private Placement, Sr Sub Nt, 9.750%, 05/15/15 ^2,10		842		795,690	0.7

				5,138,230	4.8


Description	Par (000)		Value		Percent of Net Assets ^*

REAL ESTATE INVESTMENT TRUSTS (REITs) — 0.1%
DuPont Fabros Technology LP, Private Placement, Nt, 8.500%, 12/15/17 ²	$	105	$	108,150	0.1	%

Total Financials				13,687,664	12.8

HEALTH CARE — 4.9%
HEALTH CARE EQUIPMENT & SUPPLIES — 0.1%
DJO Finance LLC / DJO Finance Corp., Private Placement, Sr Nt, 10.875%, 11/15/14 ²		50		54,313	0.1

HEALTH CARE PROVIDERS & SERVICES — 2.5%
HCA, Inc., 5.750%, 03/15/14 ¹⁰		195		184,031	0.2
HCA, Inc., Sec’d Nt, 9.250%, 11/15/16 ¹⁰		1,000		1,063,125	1.0
Multiplan, Inc., Private Placement, 10.375%, 04/15/16 ²		750		772,500	0.7
TeamHealth, Inc., Sr Sub Nt, 11.250%, 12/01/13		105		109,725	0.1
Tenet Healthcare Corp., Private Placement, 8.875%, 07/01/19 ^2,10		500		541,250	0.5

				2,670,631	2.5
PHARMACEUTICALS — 2.3%
Catalent Pharma Solutions, Inc., Nt, PIK, 10.250%, 04/15/15		202		198,465	0.2
Celtic Pharma Phinco B.V., (Bermuda), PIK, 17.000%, 06/15/12 ^3,9		1,584		950,328	0.9
Elan Finance plc/Elan Finance Corp., Private Placement, (Ireland), 8.750%, 10/15/16 ²		500		495,000	0.4
Elan Finance plc/Elan Finance Corp., Sr Nt, (Ireland), VAR, 4.250%, 11/15/11		830		815,475	0.8

				2,459,268	2.3

Total Health Care				5,184,212	4.9

INDUSTRIALS — 14.7%
AEROSPACE & DEFENSE — 0.4%
Bombardier, Inc., Private Placement, (Canada),
7.500%, 03/15/18 ²		50		52,125	0.0	¹²
7.750%, 03/15/20 ²		50		52,250	0.1
Colt Defense LLC/Colt Finance Corp., Private Placement, 8.750%, 11/15/17 ²		25		25,063	0.0	¹²
DigitalGlobe, Inc., Private Placement, Sr Nt, 10.500%, 05/01/14 ²		250		269,375	0.3

				398,813	0.4

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments (continued)

As of March 31, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets ^*

AIRLINES — 2.6%
American Airlines, Pass Through Trust 1991, Collateral Trust Notes, 10.180%, 01/02/13 ^3,9	$	797	$	728,844	0.7	%
American Airlines, Pass Through Trust 1991, Private Placement, Nt, 10.320%, 07/30/14 ^2,3,9		670		576,434	0.5
Continental Airlines 2005-ERJ1 Pass Through Trust, 9.798%, 04/01/21 ¹⁰		1,401		1,303,036	1.2
Delta Air Lines, Inc.,
8.300%, 12/15/29 ^1,4		1,145		22,900	0.0	¹²
10.125%, 05/15/10 ^1,4		500		10,000	0.0	¹²
UAL 2007-1 Pass Through Trust, Private Placement, Nt, VAR,
2.680%, 07/02/14 ²		111		85,312	0.1
7.336%, 07/02/19 ²		86		68,409	0.1

				2,794,935	2.6
BUILDING PRODUCTS — 0.7%
AMH Holdings, Inc., Sr Nt, 11.250%, 03/01/14 ⁷		400		411,500	0.4
Associated Materials LLC/Associated Materials Finance, Inc., 9.875%, 11/15/16		300		324,000	0.3

				735,500	0.7
COMMERCIAL SERVICES & SUPPLIES — 2.7%
Cenveo Corp., Private Placement,
8.875%, 02/01/18 ²		200		202,250	0.2
10.500%, 08/15/16 ²		1,000		1,018,750	0.9
Cenveo Corp., Sr Sub Nt, 7.875%, 12/01/13		325		311,188	0.3
Garda World Security Corp., Private Placement, (Canada), 9.750%, 03/15/17 ²		100		102,375	0.1
Harland Clarke Holdings Corp., VAR,
6.000%, 05/15/15 ¹⁰		350		287,875	0.3
9.500%, 05/15/15		625		585,937	0.5
Iron Mountain, Inc., 8.375%, 08/15/21		250		260,000	0.2
Quebecor World Capital Corp., (Canada),
6.125%, 11/15/13 ^1,3,4		1,415		77,825	0.1
6.500%, 08/01/27 ^1,3,4		810		44,550	0.1
9.750%, 01/15/15 ^1,3,4		585		32,175	0.0	¹²

				2,922,925	2.7


Description	Par (000)		Value		Percent of Net Assets ^*

CONSTRUCTION & ENGINEERING — 1.1%
RSC Equipment Rental, Inc., 9.500%, 12/01/14 ¹⁰	$	893	$	884,070	0.8	%
United Rentals North America, Inc., 10.875%, 06/15/16		240		261,000	0.3

				1,145,070	1.1
ELECTRICAL EQUIPMENT — 0.3%
Belden, Inc., Private Placement, Sr Nt, 9.250%, 06/15/19 ^2,10		125		133,437	0.1
General Cable Corp., VAR, 2.626%, 04/01/15		250		224,375	0.2

				357,812	0.3
INDUSTRIAL CONGLOMERATES — 2.0%
JB Poindexter & Co., Inc., Co. Guar, 8.750%, 03/15/14 ¹⁰		2,084		1,813,080	1.7
Milacron Escrow Corp., Sec’d Nt, 11.500%, 05/15/11 ^1,3,4,9		1,182		—	0.0
Milacron Holdings, Inc., 12.000%, 08/01/14 ^3,9		281		281,270	0.3

				2,094,350	2.0
INDUSTRIAL MACHINERY — 1.5%
RBS Global, Inc. & Rexnord Corp., Sr Sub Nt, 11.750%, 08/01/16 ¹⁰		410		439,725	0.4
RBS Global, Inc./Rexnord LLC, Private Placement, 9.500%, 08/01/14 ^2,10		1,063		1,105,520	1.1

				1,545,245	1.5
MARINE — 1.0%
Navios Maritime Holdings, Inc./Navios Maritime Finance U.S., Inc., Private Placement, 8.875%, 11/01/17 ²		165		170,775	0.2
Overseas Shipholding Group, Inc., 8.125%, 03/30/18		200		198,500	0.2
Teekay Corp., 8.500%, 01/15/20		35		36,575	0.0	¹²
Ultrapetrol Bahamas Ltd., 1st Mtg, (Bahamas), 9.000%, 11/24/14 ¹⁰		700		682,500	0.6

				1,088,350	1.0
ROAD & RAIL — 2.4%
Avis Budget Car Rental LLC / Avis Budget Finance, Inc., Nt, 7.750%, 05/15/16		200		196,000	0.2
Avis Budget Car Rental LLC / Avis Budget Finance, Inc., Private Placement, 9.625%, 03/15/18 ²		315		329,175	0.3

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments (continued)

As of March 31, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets ^*

ROAD & RAIL (continued)
Hertz Corp. (The), Sr Nt, 10.500%, 01/01/16	$	250	$	268,437	0.3	%
Kansas City Southern Railway, Sr Nt, 8.000%, 06/01/15		250		259,688	0.2
Quality Distribution LLC/QD Capital Corp., Private Placement,
10.000%, 06/01/13 ^2,3,9		850		841,500	0.8
PIK, 11.750%, 11/01/13 ^2,3,9		756		665,344	0.6

				2,560,144	2.4
TRANSPORTATION SERVICES — 0.0% ¹²
IdleAire Technologies Corp., Sr Disc Nt, 13.000%, 12/15/12 ^1,3,4,9		1,415		14,150	0.0	¹²

Total Industrials				15,657,294	14.7

INFORMATION TECHNOLOGY — 4.6%
COMMUNICATIONS EQUIPMENT — 0.4%
Avaya, Inc., Sr Nt, 9.750%, 11/01/15		500		487,500	0.4

COMPUTERS & PERIPHERALS — 0.6%
Seagate Technology HDD Holdings, (Cayman Islands), 6.800%, 10/01/16		250		250,625	0.3
Stratus Technologies, Inc., Private Placement, Sr Secd Nt, 12.000%, 03/29/15 ²		380		366,358	0.3

				616,983	0.6
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.9%
Intcomex, Inc., Private Placement, 13.250%, 12/15/14 ²		75		75,844	0.0	¹²
Sanmina-SCI Corp., Private Placement, Sr Nt, VAR, 3.007%, 06/15/14 ²		200		189,000	0.2
Smart Modular Technologies WWH, Inc., Sr Nt, (Cayman Islands), VAR, 5.751%, 04/01/12 ^3,9		423		407,190	0.4
Viasystems, Inc., Private Placement, 12.000%, 01/15/15 ²		325		351,812	0.3

				1,023,846	0.9
INTERNET SOFTWARE & SERVICES — 0.4%
Equinix, Inc., Sub Nt, 8.125%, 03/01/18		245		253,575	0.3
Terremark Worldwide, Inc., Private Placement, Sr Nt, 12.000%, 06/15/17 ^2,7		125		143,750	0.1

				397,325	0.4


Description	Par (000)		Value		Percent of Net Assets ^*

IT SERVICES — 0.7%
First Data Corp., 9.875%, 09/24/15 ¹⁰	$	300	$	258,750	0.3	%
Sitel LLC/Sitel Finance Corp., Private Placement, Sr Nt, 11.500%, 04/01/18 ²		110		110,825	0.1
Stream Global Services, Inc., Private Placement, 11.250%, 10/01/14 ²		100		104,000	0.1
Unisys Corp., Private Placement, 14.250%, 09/15/15 ²		201		239,692	0.2

				713,267	0.7
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.6%
Amkor Technology, Inc., Sr Nt, 7.750%, 05/15/13		300		302,250	0.3
NXP BV/NXP Funding LLC, Sr Nt, (Netherlands), VAR,
3.001%, 10/15/13		400		375,000	0.4
7.875%, 10/15/14 ¹⁰		1,015		989,625	0.9

				1,666,875	1.6

Total Information Technology				4,905,796	4.6

MATERIALS — 9.4%
CHEMICALS — 1.3%
LBI Escrow Corp., Private Placement, 8.000%, 11/01/17 ²		325		337,187	0.3
PolyOne Corp., Nt, 8.875%, 05/01/12		500		528,750	0.5
Sterling Chemicals, Inc., 10.250%, 04/01/15		350		349,125	0.3
Terra Capital, Inc., Sr Nt, 7.750%, 11/01/19		125		150,938	0.2

				1,366,000	1.3
CONSTRUCTION MATERIALS — 0.1%
U.S. Concrete, Inc., Sr Sub Nt, 8.375%, 04/01/14 ^1,4		229		135,110	0.1

CONTAINERS & PACKAGING — 2.3%
Berry Plastics Corp., Sr Sub Nt,
8.250%, 11/15/15		165		166,031	0.2
8.875%, 09/15/14		150		146,438	0.1
Berry Plastics Holding Corp., Nt, 8.875%, 09/15/14		400		390,500	0.4
BWAY Corp., Private Placement, 10.000%, 04/15/14 ²		100		107,500	0.1
Constar International, Inc., Co Guar, VAR, 3.625%, 02/15/12 ¹⁰		950		787,312	0.7
Solo Cup Co., Sr Nt, 8.500%, 02/15/14 ¹⁰		808		789,820	0.8

				2,387,601	2.3

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments (continued)

As of March 31, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets ^*

METALS & MINING — 1.8%
Consol Energy, Inc., Private Placement, 8.250%, 04/01/20 ²	$	125	$	128,438	0.1	%
Consol Energy, Inc., Private Placement, Sr Nt, 8.000%, 04/01/17 ²		170		174,675	0.2
FMG Resources August 2006 Pty. Ltd, Private Placement, Sr Secd Nt, (Australia), 10.625%, 09/01/16 ²		250		288,125	0.3
International Coal Group, Inc., Sr Secd Nt, 9.125%, 04/01/18		75		76,125	0.1
Murray Energy Corp., Private Placement, 10.250%, 10/15/15 ²		150		153,750	0.1
United States Steel Corp., Sr Nt, 7.375%, 04/01/20		300		300,750	0.3
Wolverine Tube, Inc., Sr Nt, PIK, 15.000%, 03/31/12 ^3,9		1,169		795,037	0.7

				1,916,900	1.8
PAPER & FOREST PRODUCTS — 3.9%
Abitibi-Consolidated Co. of Canada, Private Placement, Sr Nt, (Canada), 13.750%, 04/01/11 ^1,2,4		212		222,561	0.2
Abitibi-Consolidated Co. of Canada, Sr Nt, (Canada),
6.000%, 06/20/13 ^1,4		630		155,925	0.2
8.375%, 04/01/15 ^1,4		1,395		345,263	0.3
Abitibi-Consolidated, Inc., Sr Nt, (Canada), 8.850%, 08/01/30 ^1,4		25		6,187	0.0	¹²
Appleton Papers, Inc., Private Placement, Sr Secd Nt, 10.500%, 06/15/15 ²		258		256,710	0.2
Bowater Canada Finance Corp., Nt, (Canada), 7.950%, 11/15/11 ^1,4		500		215,000	0.2
NewPage Corp., Sr Secd Nt, 11.375%, 12/31/14		1,500		1,492,500	1.4
Smurfit-Stone Container Enterprises, Inc., 8.375%, 07/01/12 ^1,4		448		397,600	0.4
Smurfit-Stone Container Enterprises, Inc., Sr Nt, 8.000%, 03/15/17 ^1,4		1,229		1,096,882	1.0

				4,188,628	3.9

Total Materials				9,994,239	9.4

TELECOMMUNICATION SERVICES — 8.4%
DIVERSIFIED TELECOMMUNICATION SERVICES — 4.1%
Cincinnati Bell, Inc., 8.750%, 03/15/18		120		121,050	0.1


Description	Par (000)		Value		Percent of Net Assets ^*

DIVERSIFIED TELECOMMUNICATION SERVICES (continued)
Clearwire Communications LLC/Clearwire Finance, Inc., Private Placement, 12.000%, 12/01/15 ²	$	850	$	867,000	0.8	%
Frontier Communications Corp., 8.250%, 05/01/14		50		52,250	0.1
Global Crossing Ltd., Private Placement, (Bermuda), 12.000%, 09/15/15 ²		35		38,850	0.0	¹²
Level 3 Financing, Inc., Co. Guar, 9.250%, 11/01/14 ¹⁰		1,000		975,000	0.9
Level 3 Financing, Inc., Private Placement, 10.000%, 02/01/18 ²		105		100,275	0.1
New Communications Holdings, Inc., Private Placement,
7.875%, 04/15/15 ²		115		118,162	0.1
8.250%, 04/15/17 ²		115		117,013	0.1
8.500%, 04/15/20 ²		115		115,862	0.1
8.750%, 04/15/22 ²		110		110,000	0.1
PAETEC Holding Corp., Private Placement, Sr Secd Nt, 8.875%, 06/30/17 ²		200		205,500	0.2
Qwest Communications International, Inc., Private Placement, Sr Secd Nt, 7.125%, 04/01/18 ²		200		206,500	0.2
Qwest Corp., Sr Nt, 7.625%, 06/15/15 ¹⁰		1,015		1,108,888	1.0
Windstream Corp., 7.875%, 11/01/17		320		315,200	0.3

				4,451,550	4.1
WIRELESS TELECOMMUNICATION SERVICES — 4.3%
Cricket Communications, Inc., 9.375%, 11/01/14 ⁶		250		254,375	0.2
Cricket Communications, Inc., Sr Secd Nt, 7.750%, 05/15/16		180		186,750	0.2
MetroPCS Wireless, Inc., Sr Nt, 9.250%, 11/01/14 ⁶		500		511,250	0.5
Nextel Communications, Inc., 7.375%, 08/01/15 ¹⁰		1,475		1,401,250	1.3
NII Capital Corp., Private Placement,
8.875%, 12/15/19 ²		315		326,025	0.3
10.000%, 08/15/16 ²		185		202,575	0.2
Sprint Nextel Corp., Nt, 6.000%, 12/01/16 ¹⁰		1,400		1,263,500	1.2
Wind Acquisition Finance S.A., Private Placement, (Luxembourg), 11.750%, 07/15/17 ²		200		221,000	0.2

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments (continued)

As of March 31, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets ^*

WIRELESS TELECOMMUNICATION SERVICES (continued)
Wind Acquisition Holdings Finance S.A., Private Placement, Sr Secd Nt, (Luxembourg), 12.250%, 07/15/17 ²	$	205	$	202,950	0.2	%

				4,569,675	4.3

Total Telecommunication Services				9,021,225	8.4

UTILITIES — 5.6%
GAS UTILITIES — 0.1%
Crosstex Energy/Crosstex Energy Finance Corp., Private Placement, 8.875%, 02/15/18 ²		120		123,750	0.1

INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 5.2%
Calpine Construction Finance Co. LP and CCFC Finance Corp., Private Placement, 8.000%, 06/01/16 ²		200		204,500	0.2
Calpine Corp., Private Placement, Sr Nt, 7.250%, 10/15/17 ²		354		347,805	0.3
Calpine Generating Co. LLC, Secd Nt, 0.000%, 04/01/11 ^1,4		1,000		135,000	0.1
Dynegy Holdings, Inc., Sr Unsecd Nt, 7.125%, 05/15/18		500		355,000	0.3
Dynegy Roseton/Danskammer Pass Through Trust, Sr Unsecd Nt, 7.670%, 11/08/16		500		485,940	0.5
Edison Mission Energy, 7.200%, 05/15/19		500		345,000	0.3
Edison Mission Energy, Sr Nt, 7.750%, 06/15/16		1,000		730,000	0.7
Mirant Americas Generation LLC, Sr Nt, 8.500%, 10/01/21 ⁶		500		470,000	0.5
North American Energy Alliance LLC/North American Energy Alliance Finance Corp., Private Placement, 10.875%, 06/01/16 ²		125		133,125	0.1
NRG Energy, Inc., Sr Nt,
7.250%, 02/01/14		250		251,875	0.2
7.375%, 01/15/17 ¹⁰		1,375		1,361,250	1.3
RRI Energy, Inc., 7.625%, 06/15/14 ⁶		500		467,500	0.5
Texas Competitive Electric Holdings Co. LLC, 10.250%, 11/01/15 ^6,7		350		243,250	0.2

				5,530,245	5.2


Description	Par (000)		Value		Percent of Net Assets ^*

MULTI-UTILITIES — 0.3%
Energy Future Holdings Corp., 10.875%, 11/01/17 ^6,7	$	450	$	334,125	0.3	%

Total Utilities				5,988,120	5.6

Total Corporate Bonds
(Cost $112,336,153)				109,046,299	102.2

LOAN PARTICIPATIONS & ASSIGNMENTS — 29.5%
CONSUMER DISCRETIONARY — 9.4%
AUTO COMPONENTS — 0.4%
Remy, 1st Lien Term Loan,
5.750%, 12/06/13		107		106,265	0.1
5.757%, 12/06/13		38		38,272	0.1
5.790%, 12/06/13		4		3,849	0.0	¹²
8.757%, 06/06/14		250		249,688	0.2

				398,074	0.4
AUTOMOBILES — 0.7%
Ford Motor Co., Term Loan B,
3.230%, 12/15/13		39		37,505	0.1
3.260%, 12/15/13		677		654,612	0.6

				692,117	0.7
GAMING — 2.1%
Fontainebleau Las Vegas Holdings LLC, Delayed Draw Term Loan B, 4.316%, 06/06/14 ^1,4		141		29,762	0.0	¹²
Fontainebleau Las Vegas Holdings LLC, Initial Term Loan, 4.527%, 06/06/14 ^1,4		282		59,846	0.1
Harrah’s Operating Co., Inc., Term B-2 Loan, 3.249%, 01/28/15		1,006		866,738	0.8
HSP Gaming LP, Term Loan, 11.250%, 08/20/14		255		252,450	0.2
Venetian Macau, Term B Funded Project Loan, 4.800%, 05/25/13		1,112		1,077,951	1.0

				2,286,747	2.1
HOTELS, RESTAURANTS & LEISURE — 0.6%
Outback Steakhouse, Inc., Term Loan B, 4.500%, 06/14/14		1		1,151	0.0	¹²
Outback Steakhouse, Prefunded RC Commitment,
0.077%, 06/14/13		4		3,848	0.0	¹²
4.500%, 06/14/13		1		1,149	0.0	¹²

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments (continued)

As of March 31, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets ^*

HOTELS, RESTAURANTS & LEISURE (continued)
Outback Steakhouse, Term Loan B,
2.625%, 06/14/14	$	418	$	388,834	0.4	%
4.500%, 06/14/14		23		21,748	0.0	¹²
Six Flags Theme Parks, Inc., Term Loan B, 2.480%, 04/30/15		250		248,803	0.2

				665,533	0.6
MEDIA — 5.2%
Cengage Learning Acquisitions, Term Loan, 2.790%, 07/15/14		496		437,012	0.4
Clear Channel Communications, Inc., Term Loan B, 3.898%, 01/29/16		628		507,717	0.5
Dex Media West, New Term Loan,
7.500%, 10/24/14		15		13,970	0.0	¹²
7.500%, 10/24/14		15		13,970	0.0	¹²
7.500%, 10/24/14		4		3,566	0.0	¹²
Entercom Radio LLC, Term Loan A, 1.372%, 06/30/12		1,077		1,020,101	1.0
High Plains Broadcasting Operating Co. LLC, Term Loan, 9.000%, 09/14/16		193		185,492	0.2
Idearc, Inc., Exit Term Loan, 11.000%, 12/31/15		966		909,291	0.8
Newport Television LLC, Term Loan, 9.000%, 09/14/16		732		704,195	0.7
Newsday, Term Loan B, 10.500%, 08/01/13		250		271,562	0.2
R.H. Donnelley, Inc., Exit Term Loan, 9.250%, 10/24/14		200		195,042	0.2
Univision Communications, Inc., 1st Lien Term Loan,
2.540%, 09/20/14		91		80,641	0.1
2.540%, 09/20/14		1,409		1,254,419	1.1

				5,596,978	5.2
TEXTILES, APPAREL & LUXURY GOODS — 0.4%
Claire’s Stores, Term Loan B,
05/29/14 ^{^}		107		93,822	0.1
3.001%, 05/29/14		121		106,392	0.1
3.001%, 05/29/14		272		239,381	0.2

				439,595	0.4

Total Consumer Discretionary				10,079,044	9.4

CONSUMER STAPLES — 1.1%
FOOD & STAPLES RETAILING — 0.5%
Rite Aid Corp., Term Loan 3, 6.000%, 06/04/14		495		483,850	0.5


Description	Par (000)		Value		Percent of Net Assets ^*

HOUSEHOLD PRODUCTS — 0.6%
Spectrum Brands, Inc., Letter of Credit, 1.500%, 06/30/12	$	24	$	24,132	0.0	% ¹²
Spectrum Brands, Inc., Term Loan B,
8.000%, 06/30/12		252		251,775	0.2
8.000%, 06/30/12		206		205,810	0.2
8.000%, 06/30/12		206		205,810	0.2
8.750%, 06/30/12		1		1,174	0.0	¹²
8.750%, 06/30/12		1		686	0.0	¹²

				689,387	0.6

Total Consumer Staples				1,173,237	1.1

ENERGY — 0.1%
OIL, GAS & CONSUMABLE FUELS — 0.1%
Big West Oil, Term Loan B, 01/22/15 ^{^}		100		101,083	0.1

FINANCIALS — 3.7%
DIVERSIFIED FINANCIAL SERVICES — 2.4%
Capmark Financial Group, 1st Lien Term Loan, 4.750%, 03/23/11		1,213		1,030,874	1.0
Capmark Financial Group, Term Loan, 03/23/13 ^{^}		175		60,331	0.1
2.425%, 03/23/13		700		241,277	0.2
CIT Group, Inc., Initial Term Loan,
13.000%, 01/20/12		11		11,360	0.0	¹²
13.000%, 01/20/12		11		11,360	0.0	¹²
13.000%, 01/20/12		11		11,359	0.0	¹²
13.000%, 01/20/12		636		658,228	0.6
13.000%, 01/20/12		22		22,719	0.1
13.000%, 01/20/12		11		11,360	0.0	¹²
13.000%, 01/20/12		11		11,360	0.0	¹²
CIT Group, Inc., New Term Loan,
13.000%, 01/20/12		90		93,603	0.1
13.000%, 01/20/12		90		93,603	0.0	¹²
13.000%, 01/20/12		90		93,604	0.1
13.000%, 01/20/12		90		93,604	0.1
13.000%, 01/20/12		90		93,603	0.1

				2,538,245	2.4
INSURANCE — 0.8%
HMSC Corp., 1st Lien Term Loan, 2.499%, 04/03/14		963		803,907	0.8

REAL ESTATE INVESTMENT TRUSTS (REITs) — 0.5%
General Growth Properties, Inc., Term Loan, 12/31/49 ^{^,1,4}		545		556,925	0.5

Total Financials				3,899,077	3.7

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments (continued)

As of March 31, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets ^*

INDUSTRIALS — 2.6%
AIRLINES — 0.9%
Delta Airlines, Inc., 1st Lien Term Loan,
0.094%, 04/30/12	$	18	$	17,412	0.0	% ¹²
2.249%, 04/30/12		8		7,123	0.0	¹²
2.251%, 04/30/12		464		440,828	0.4
Delta Airlines, Inc., Sr Sec’d Term Loan, 8.750%, 09/30/13		499		504,984	0.5

				970,347	0.9
BUILDING PRODUCTS — 0.9%
Jacuzzi Brands, Inc., 1st Lien Term Loan B, 2.499%, 02/07/14		941		774,113	0.7
Jacuzzi Brands, Inc., 1st Lien, Letter of Credit, 0.151%, 02/07/14		40		32,732	0.1
Jacuzzi Luxco S.A.R.L., New Term Loan, 4.251%, 11/15/13 ^3,9		123		122,540	0.1

				929,385	0.9
COMMERCIAL SERVICES & SUPPLIES — 0.8%
Clarke American Corp., Term Loan B,
2.748%, 06/27/14		97		88,890	0.1
2.790%, 06/27/14		173		158,223	0.1
2.790%, 06/27/14		156		142,096	0.1
2.790%, 06/27/14		62		56,509	0.1
New Customer Service Cos., Inc., Unsecd, Term Loan, 9.500%, 03/16/17		200		196,500	0.2
Quebecor World, Inc., Exit Term Loan,
9.000%, 07/10/12		182		183,711	0.2
9.000%, 07/10/12		67		67,566	0.0	¹²

				893,495	0.8

Total Industrials				2,793,227	2.6

INFORMATION TECHNOLOGY — 4.3%
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.3%
Isola Group S.A.R.L., 1st Lien Term Loan, 11.000%, 12/18/12 ^1,9		445		391,658	0.4
Isola Group S.A.R.L., 2nd Lien Term Loan, 17.750%, 12/18/13 ^1,9		250		75,000	0.1
Sirius Computer Solutions, 2nd Lien Term Loan, 6.290%, 05/30/13 ⁹		1,000		900,000	0.8

				1,366,658	1.3
IT SERVICES — 2.3%
Compucom Systems, Inc., Term Loan, 3.750%, 08/23/14 ^3,9		901		851,634	0.8


Description	Par (000)		Value		Percent of Net Assets ^*

IT SERVICES (continued)
First Data Corp., Initial Tranche B-1 Term Loan,
2.997%, 09/24/14	$	361	$	318,949	0.3	%
3.032%, 09/24/14		11		9,697	0.0	¹²
3.040%, 09/24/14		20		17,283	0.0	¹²
First Data Corp., Initial Tranche B-3 Term Loan,
3.032%, 09/24/14		1,394		1,233,453	1.1
3.040%, 09/24/14		73		64,703	0.1

				2,495,719	2.3
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.7%
Freescale Semiconductor, Inc., Incremental Term Loan, 12.500%, 12/15/14		350		358,670	0.3
Freescale Semiconductor, Inc., Term Loan, 4.479%, 11/29/13		395		372,728	0.4

				731,398	0.7

Total Information Technology				4,593,775	4.3

MATERIALS — 5.5%
CHEMICALS — 3.3%
Cristal Inorganic Chemicals (Millenium), 1st Lien Term Loan, 2.540%, 05/15/14		890		836,822	0.8
Cristal Inorganic Chemicals (Millenium), 2nd Lien Term Loan, 6.040%, 05/15/14 ^3,9		500		464,585	0.4
Lyondell Chemical Co., Dutch Tranche A Dollar Term Loan, 3.748%, 12/20/13		55		42,595	0.0	¹²
Lyondell Chemical Co., Dutch Tranche Revolving Credit Loan, 3.748%, 12/20/13		24		18,818	0.0	¹²
Lyondell Chemical Co., German Tranche B-1 Euro Term Loan, 3.998%, 12/22/14		69		54,024	0.1
Lyondell Chemical Co., German Tranche B-2 Euro Term Loan, 3.998%, 12/22/14		69		54,024	0.1
Lyondell Chemical Co., German Tranche B-3 Euro Term Loan, 3.998%, 12/22/14		69		54,024	0.0	¹²
Lyondell Chemical Co., Roll-Up DIP Term Loan,
5.799%, 04/06/10		967		1,026,980	1.0
6.560%, 04/06/10		1		1,140	0.0	¹²
Lyondell Chemical Co., Term Loan, 12/20/14 ^{^}		17		13,444	0.0	¹²
Lyondell Chemical Co., U.S. Tranche A Dollar Term Loan, 3.748%, 12/20/13		172		134,450	0.1

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments (continued)

As of March 31, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets ^*

CHEMICALS (continued)
Lyondell Chemical Co., U.S. Tranche B-1 Dollar Term Loan, 7.000%, 12/20/14	$	301	$	234,426	0.2	%
Lyondell Chemical Co., U.S. Tranche B-2 Dollar Term Loan, 7.000%, 12/20/14		301		234,426	0.2
Lyondell Chemical Co., U.S. Tranche B-3 Dollar Term Loan, 7.000%, 12/20/14		401		312,961	0.3
Lyondell Chemical Co., U.S. Tranche Primary Revolving Credit Loan, 3.748%, 12/20/13		90		70,567	0.1

				3,553,286	3.3
DIVERSIFIED MANUFACTURING — 1.0%
BOC Edwards, 1st Priority Lien Term Loan, 2.252%, 05/31/14		1,197		1,062,019	1.0

PAPER & FOREST PRODUCTS — 1.2%
Abitibi-Consolidated Co. of Canada, Term Loan, 11.000%, 03/31/11		1,329		1,294,780	1.2

Total Materials				5,910,085	5.5

TELECOMMUNICATION SERVICES — 0.5%
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.5%
Level 3 Communications, Tranche A Term Loan,
2.501%, 03/13/14		71		66,317	0.1
2.501%, 03/13/14		179		165,793	0.1
Level 3 Communications, Tranche B Term Loan, 11.500%, 03/13/14		250		272,500	0.3

Total Telecommunication Services				504,610	0.5

UTILITIES — 2.3%
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 2.3%
Calpine Corp., 1st Priority Lien Term Loan, 3.165%, 03/29/14		1,063		1,029,492	1.0
Texas Competitive Electric Holdings Co. LLC, Initial Tranche B-2 Term Loan,
3.729%, 10/10/14		968		793,757	0.7
3.790%, 10/10/14		10		8,204	0.0	¹²
Texas Competitive Electric Holdings Co. LLC, Initial Tranche B-3 Term Loan,
3.729%, 10/10/14		247		203,006	0.2
3.751%, 10/10/14		3		2,078	0.0	¹²


Description	Shares/Par (000)			Value		Percent of Net Assets ^*

INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (continued)
TPF Generation Holdings LLC, 2nd Lien Term Loan,
4.501%, 12/15/14	$	106		$	94,129	0.1	%
4.540%, 12/15/14		394			349,621	0.3

Total Utilities					2,480,287	2.3

Total Loan Participations & Assignments
(Cost $31,585,349)					31,534,425	29.5

ASSET-BACKED SECURITIES — 1.4%
Countrywide Asset-Backed Certificates, Series 2004-13, Class MV8, VAR, 1.946%, 01/25/35 ^3,9		115			5,913	0.0	¹²
Long Beach Mortgage Loan Trust, Series 2004-5, Class M6, VAR, 2.746%, 09/25/34 ^3,9		63			5,837	0.0	¹²
Unipac IX LLC, 13.000%, 04/11/13 ^3,9		1,500			1,468,791	1.4

Total Asset-Backed Securities
(Cost $1,640,131)					1,480,541	1.4

Total Fixed Income Investments
(Cost $145,561,633)					142,061,265	133.1

COMMON STOCKS — 3.6%
CONSUMER DISCRETIONARY — 0.8%
AUTO COMPONENTS — 0.0%
Glasstech, Inc., Class C ^1,3,9		—	¹¹		—	0.0

BROADCASTING & CABLE TV — 0.0% ¹²
Adelphia Recovery Trust ^1,3,9		157			1	0.0	¹²

LEISURE EQUIPMENT & PRODUCTS — 0.3%
New True Temper Holdings, Inc. ADR ^1,3,9		43			300,972	0.3

MEDIA — 0.5%
Dex One Corp. ¹		20			567,027	0.5
SuperMedia, Inc. ¹		—	¹¹		14,602	0.0	¹²

					581,629	0.5
TEXTILES, APPAREL & LUXURY GOODS — 0.0%
Broder Brothers Co. ^1,3,9		38			—	0.0
WestPoint International, Inc. ^1,3,9		14			—	0.0

Total Consumer Discretionary					882,602	0.8

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments (continued)

As of March 31, 2010 (Unaudited)


Description	Shares (000)		Value		Percent of Net Assets ^*

CONSUMER STAPLES — 0.9%
FOOD PRODUCTS — 0.0% ¹²
Eurofresh, Inc., ADR ^1,3,9	$	106	$	52,943	0.0	% ¹²

HOUSEHOLD PRODUCTS — 0.9%
Spectrum Brands, Inc. ¹		35		952,495	0.9

Total Consumer Staples				1,005,438	0.9

INDUSTRIALS — 1.2%
BUILDING PRODUCTS — 0.2%
Jupiter Holdings LLC, ADR ^1,3,9		82		177,274	0.2

COMMERCIAL SERVICES & SUPPLIES — 0.2%
World Color Press, Inc., (Canada) ¹		20		230,546	0.2

INDUSTRIAL CONGLOMERATES — 0.8%
Milacron Holdings, Inc. ^1,3,9		1		828,416	0.8

Total Industrials				1,236,236	1.2

INFORMATION TECHNOLOGY — 0.2%
IT SERVICES — 0.1%
Unisys Corp. ¹		3		112,136	0.1

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.1%
MagnaChip Semiconductor S.A./MagnaChip Semiconductor Finance Co., (Luxembourg), ADR ^1,3,9		793		111,037	0.1

Total Information Technology				223,173	0.2

MATERIALS — 0.2%
CONTAINERS & PACKAGING — 0.2%
Constar International, Inc. ¹		8		126,400	0.1
Portola Packaging ^1,3,9		15		56,100	0.1

				182,500	0.2

METALS & MINING — 0.0% ¹²
Lexington Coal Co. ^1,3,9		25		27,083	0.0	¹²

Total Materials				209,583	0.2

TELECOMMUNICATION SERVICES — 0.3%
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.3%
AboveNet, Inc. ¹		5		260,042	0.3
XO Holdings, Inc. ¹		1		387	0.0	¹²

Total Telecommunication Services				260,429	0.3


Description	Shares (000)			Value		Percent of Net Assets ^*

UTILITIES — 0.0% ¹²
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.0% ¹²
Mirant Corp. ¹	$	1		$	10,143	0.0	% ¹²

Total Common Stocks
(Cost $7,978,847)					3,827,604	3.6

PREFERRED STOCKS — 2.0%
CONSUMER DISCRETIONARY — 0.4%
AUTO COMPONENTS — 0.0%
Glasstech, Inc., Pfd, Series C, ^1,3,9		—	¹¹		—	0.0

HOUSEHOLD DURABLES — 0.3%
M/I Homes, Inc., Series A, 9.750%, 03/15/12 ^1,14		22			358,800	0.3

MEDIA — 0.1%
Spanish Broadcasting System, Inc., Pfd ^1,3,9		481			1,215	0.0	¹²
Spanish Broadcasting System, Inc., Pfd, Series B, PIK, 10.750%, 03/11/10 ^1,3,9,14		—	¹¹		76,508	0.1

					77,723	0.1

Total Consumer Discretionary					436,523	0.4

CONSUMER STAPLES — 0.1%
FOOD PRODUCTS — 0.1%
Eurofresh, Inc., ADR ^1,3,9		—	¹¹		139,000	0.1

FINANCIALS — 1.5%
COMMERCIAL BANKS — 1.5%
CoBank ACB, 11.000%, 10/01/14 ^3,9,14		30			1,595,625	1.5

Total Preferred Stocks
(Cost $2,973,856)					2,171,148	2.0

WARRANTS — 0.2%
INDUSTRIALS — 0.2%
COMMERCIAL SERVICES & SUPPLIES — 0.1%
World Color Press, Inc., (Canada), Series I, expiring 07/20/14 (Strike Price $13.00) ¹		22			92,041	0.1

ROAD & RAIL — 0.1%
Quality Distribution, Inc., expiring 11/01/13 (Strike Price $0.01) ^1,3,9		16			68,726	0.1

TRANSPORTATION SERVICES — 0.0%
IdleAire Technologies Corp., expiring 12/15/15 (Strike Price $1.00) ^1,3,9		1			—	0.0

Total Industrials					160,767	0.2

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments (continued)

As of March 31, 2010 (Unaudited)


Description	Shares (000)		Value			Percent of Net Assets ^*

TELECOMMUNICATION SERVICES — 0.0% ¹²
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.0% ¹²
AboveNet, Inc., Class CW, expiring 09/08/10 (Strike Price $24.00) ^1,3,9	$	1	$	30,326		0.0	% ¹²

Total Warrants (Cost $1,166,218)				191,093		0.2

RIGHT — 0.0% ¹²
CONSUMER DISCRETIONARY — 0.0% ¹²
TEXTILES, APPAREL & LUXURY GOODS — 0.0% ¹²
Westpoint Stevens, Inc., expiring 04/25/14 ^1,3,9 (Cost $184,476)		13		—		0.0

Total Equity Investments
(Cost $12,303,397)				6,189,845		5.8

SHORT-TERM INVESTMENT — 4.9%
INVESTMENT COMPANY — 4.9%
JPMorgan Prime Money Market Fund, Institutional Class Shares, 0.070% ^5,13 (Cost $5,224,116)		5,224		5,224,116		4.9

INVESTMENTS OF CASH COLLATERAL FOR SECURITIES ON LOAN — 3.9%
INVESTMENT COMPANY — 3.9%
JPMorgan Prime Money Market Fund, Capital Shares, 0.100% ^5,13 (Cost $4,167,483)		4,167		4,167,483		3.9

TOTAL INVESTMENTS
(Cost $167,256,629)				157,642,709		147.7

Other Liabilities in Excess of Other Assets				(50,909,962	)	(47.7	)

NET ASSETS				106,732,747		100.0	%

ADR

American Depositary Receipt

Cert

Certificate

Company

DIP

Debtor-in-Possession

Disc

Discount

Guar

Guaranteed

LIBOR

London Interbank Offered Rate

Mtg

Mortgage

Note

Pfd

Preferred

PIK

Payment in-kind

Sec’d

Secured

Senior

Sub

Subordinate

Unsec’d

Unsecured

VAR

Variable Rate Security. The interest rate shown is the rate in effect as of March 31, 2010.

Applicable to common stockholders.

Unsettled security, coupon rate is undetermined at March 31, 2010.

Non-income producing security.

Security is exempt from registration under Rule 144A of the Securities Act of 1933. Unless otherwise indicated, this security has been determined to be liquid under procedures established by the Board of Directors and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities amounted to $37,991,494 and 35.6% of net assets applicable to common stockholders.

Fair valued security. These securities amounted to $16,234,535 and 15.2% of net assets applicable to common stockholders.

Security in default.

Investment in affiliate. Money market fund registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc.

All or a portion of the security is on loan. Securities on loan have a fair market value of $4,018,757.

Step-up bond. Interest rate is effective rate as of March 31, 2010.

Restricted security. These securities amounted to $1,565,500 and 1.5% of net assets applicable to common stockholders.

Security deemed to be illiquid. These securities amounted to $16,079,985 and 15.1% of net assets applicable to common stockholders.

All or a portion of the security is reserved for current or potential holdings of swaps, TBAs, when-issued securities and delayed delivery securities.

Amount rounds to less than one thousand (par or shares).

Amount rounds to less than 0.1%.

The rate shown is the current yield as of March 31, 2010.

Security is perpetual and, thus, does not have a predetermined maturity date. The coupon rate for this security is fixed for a period of time and may be structured to adjust thereafter. The date shown reflects the next call date. The coupon rate shown is the rate in effect as of March 31, 2010.

As of March 31, 2010, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:


Aggregate gross unrealized appreciation	$	10,890,461
Aggregate gross unrealized depreciation		(20,504,381	)

Net unrealized appreciation/depreciation	$	(9,613,920	)

Federal income tax cost of investments	$	167,256,629

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments (continued)

As of March 31, 2010 (Unaudited)

The various inputs that are used in determining the fair value of the Fund’s investments are summarized into the three broad levels listed below.

•

Level 1 — quoted prices in active markets for identical securities

•

Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

•

Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following table represents each valuation input by sector as presented in the Schedule of Portfolio Investments:


	Level 1 Quoted prices		Level 2 Other significant observable inputs		Level 3 Significant unobservable inputs		Total
Investments in Securities
Common Stocks
Consumer Discretionary	$	581,629	$	—	$	300,973	$	882,602
Consumer Staples		952,495		—		52,943		1,005,438
Industrials		230,546		—		1,005,690		1,236,236
Information Technology		112,136		—		111,037		223,173
Materials		126,400		—		83,183		209,583
Telecommunication Services		260,429		—		—		260,429
Utilities		10,143		—		—		10,143

Total Common Stocks		2,273,778		—		1,553,826		3,827,604

Preferred Stocks
Consumer Discretionary		—		358,800		77,723		436,523
Consumer Staples		—		—		139,000		139,000
Financials		—		—		1,595,625		1,595,625

Total Preferred Stocks		—		358,800		1,812,348		2,171,148

Debt Securities
Asset-Backed Securities		—		—		1,480,541		1,480,541

Corporate Bonds
Consumer Discretionary		—		30,664,574		327,131		30,991,705
Consumer Staples		—		3,796,559		1,919,073		5,715,632
Energy		—		7,900,412		—		7,900,412
Financials		—		12,865,164		822,500		13,687,664
Health Care		—		4,233,884		950,328		5,184,212
Industrials		—		12,395,202		3,262,092		15,657,294
Information Technology		—		4,498,606		407,190		4,905,796
Materials		—		9,199,202		795,037		9,994,239
Telecommunication Services		—		9,021,225		—		9,021,225
Utilities		—		5,988,120		—		5,988,120

Total Corporate Bonds		—		100,562,948		8,483,351		109,046,299

Loan Participations & Assignments
Consumer Discretionary		—		10,079,044		—		10,079,044
Consumer Staples		—		1,173,237		—		1,173,237
Energy		—		101,083		—		101,083
Financials		—		3,899,077		—		3,899,077
Industrials		—		2,670,687		122,540		2,793,227
Information Technology		—		2,375,483		2,218,292		4,593,775
Materials		—		5,445,500		464,585		5,910,085
Telecommunication Services		—		504,610		—		504,610
Utilities		—		2,480,287		—		2,480,287

Total Loan Participations & Assignments		—		28,729,008		2,805,417		31,534,425

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments (continued)

As of March 31, 2010 (Unaudited)


	Level 1 Quoted prices		Level 2 Other significant observable inputs			Level 3 Significant unobservable inputs			Total
Rights
Consumer Discretionary	$	—	$	—		$	—	^(a)	$	—	^(a)
Warrants
Industrials		92,041		—			68,726			160,767
Telecommunication Services		—		—			30,326			30,326

Total Warrants		92,041		—			99,052			191,093

Short-Term Investments
Investment Companies		5,224,116		—			—			5,224,116
Investments of Cash Collateral for Securities on Loan
Investment Companies		4,167,483		—			—			4,167,483

Total Investments in Securities	$	11,757,418	$	129,650,756		$	16,234,535		$	157,642,709

Depreciation in Other Financial Instruments
Swaps	$	—	$	(454,590	)	$	—		$	(454,590	)

(a)

Security has zero value.

There were no significant transfers into and out of Levels 1 and 2 during the three months ended March 31, 2010.

The following is a summary of investments for which significant unobservable inputs (Level 3) were used in determining fair value:


	Balance as of 12/31/09			Realized gain (loss)			Change in unrealized appreciation (depreciation)			Net amortization (accretion)			Net purchases (sales)			Transfers into Level 3		Transfers out of Level 3			Balance as of 03/31/10
Investments in Securities
Asset-Backed Securities	$	1,475,849		$	—		$	2,373		$	2,049		$	270		$	—	$	—		$	1,480,541
Common Stocks — Consumer Discretionary		300,973			—			—			—			—			—		—			300,973
Common Stocks — Consumer Staples		52,943			—			—			—			—			—		—			52,943
Common Stocks — Financials		—	^(a)		—			—			—			177,274			—		—			177,274
Common Stocks — Industrials		855,499			—			—			—			—			—		—			855,499
Common Stocks — Information Technology		111,036			—	^(b)		—	^(b)		1			—	^(b)		—		—			111,037
Common Stocks — Materials		62,100			—			(6,000	)		—			—			—		—			56,100
Corporate Bonds — Consumer Discretionary		291,226			—			36,187			(282	)		—			—		—			327,131
Corporate Bonds — Consumer Staples		2,518,525			—			15,849			(349	)		(614,952	)		—		—			1,919,073
Corporate Bonds — Financials		730,000			—			92,595			(95	)		—			—		—			822,500
Corporate Bonds — Healthcare		950,328			—			35			(35	)		—			—		—			950,328
Corporate Bonds — Industrials		1,873,259			—			305,671			(5,649	)		(231,600	)		1,394,750		(74,339	)		3,262,092
Corporate Bonds — Information Technology		405,358			—			1,832			—			—			—		—			407,190
Corporate Bonds — Materials		871,033			—			(77,065	)		1,069			—			—		—			795,037
Loan Participation & Assignments — Industrials		828,353			(1,059,641	)		996,378			—			26,960			—		(669,510	)		122,540
Loan Participation & Assignments — Information Technology		2,046,167			—			170,959			1,166			—			—		—			2,218,292
Loan Participation & Assignments — Materials		1,185,084			—			69,585			—			—			—		(790,084	)		464,585

P ACHOLDER H IGH Y IELD F UND, I NC.

Schedule of Portfolio Investments (concluded)

As of March 31, 2010 (Unaudited)


	Balance as of 12/31/09			Realized gain (loss)			Change in unrealized appreciation (depreciation)			Net amortization (accretion)			Net purchases (sales)			Transfers into Level 3		Transfers out of Level 3			Balance as of 03/31/10
Preferred Stocks — Consumer Discretionary	$	77,723		$	—		$	—		$	—		$	—		$	—	$	—		$	77,723
Preferred Stocks — Consumer Staples		139,000			—			—			—			—			—		—			139,000
Preferred Stocks — Financials		421,800			49,843			74,521			(85	)		(443,893	)		1,493,439		—			1,595,625
Preferred Stocks — Materials		—	^(a)		—			—			—			—			—		—			—	^(a)
Rights — Consumer Discretionary		—	^(a)		—			—			—			—			—		—			—	^(a)
Warrants — Industrials		—	^(a)		—			68,726			—			—	^(a)		—		—			68,726
Warrants — Telecommunication Services		41,530			—			(11,204	)		—			—			—		—			30,326

Total	$	15,237,786		$	(1,009,798	)	$	1,740,442		$	(2,210	)	$	(1,085,941	)	$	2,888,189	$	(1,533,933	)	$	16,234,535

(a)

Security has zero value.

(b)

Amount rounds to less than $1.

Transferred from Level 2 to Level 3 due to lack of observable market inputs.

Transferred from Level 3 to Level 2 due to available market inputs to determine price.

Transfers into, or out of, Level 3 are valued utilizing values as of the beginning of the period.

The change in unrealized appreciation (depreciation) attributable to securities owned at March 31, 2010, which were valued using significant unobservable inputs (Level 3) amounted to $771,728.

The Fund entered into interest payment swap arrangements with Citibank, N. A. New York (Citibank) for the purpose of partially hedging its dividend payment obligations with respect to the Auction Rate Preferred Shares (ARPS). Pursuant to each of the swap arrangements, the Fund makes payments to Citibank on a monthly basis at fixed annual rates. In exchange for such payments Citibank makes payments to the Fund on a monthly basis at a variable rate determined with reference to the one month London Interbank Offered Rate (LIBOR). The variable rates ranged from 0.228% to 0.249% for the period ended March 31, 2010. The effective date, upfront premiums, notional contract amount, maturity, fixed and floating annual rates and unrealized appreciation/depreciation of the swaps are as follows:


Effective Date	Upfront Premiums (Paid)/ Received	Notional Contract Amount		Maturity	Payments Made by the Fund	Payments Received by the Fund	Floating Annual Rate*		Unrealized Appreciation/ (Depreciation)
08/14/06	—	$	5 million	06/01/10	5.255% monthly	1 month LIBOR monthly	0.249	%	$	(62,465	)
12/01/06	—		5 million	12/01/10	5.010% monthly	1 month LIBOR monthly	0.249			(174,766	)
11/30/07	—		5 million	06/01/11	4.000% monthly	1 month LIBOR monthly	0.249			(217,359	)

									$	(454,590	)