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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-05639

Pacholder High Yield Fund, Inc.

(Exact name of registrant as specified in charter)

245 Park Avenue

New York, NY 10167

(Address of principal executive offices) (Zip code)

Frank J. Nasta

245 Park Avenue

New York, NY 10167

(Name and Address of Agent for Service)

Registrant’s telephone number, including area code: (513) 985-3200

Date of fiscal year end: December 31

Date of reporting period: March 31, 2009

ITEM 1. SCHEDULE OF INVESTMENTS.

Pacholder High Yield Fund, Inc.

Schedule of Portfolio Investments as of March 31, 2009

(Unaudited)

THE “UNAUDITED CERTIFIED MUTUAL FUNDS HOLDINGS” LIST (“the List”) IS TO BE USED FOR REPORTING PURPOSES ONLY. IT IS NOT TO BE REPRODUCED FOR USE AS ADVERTISING OR SALES LITERATURE WITH THE GENERAL PUBLIC. The list is submitted for the general information of the shareholders of the Fund. It is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by a prospectus. The list has been created from the books and records of the Fund. Certified holdings are available 60 days after the fund’s fiscal quarter, using a trade date accounting convention, by contacting the appropriate service center. The list is subject to change without notice. The list is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.

JPMorgan Asset Management is the marketing name for the asset management business of J.P. Morgan Chase & Co.

JPMorgan Distribution Services, Inc.

^© J.P. Morgan Chase & Co., 2006.

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

Statement of Net Assets Applicable to Common Stockholders

As of March 31, 2009 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

CORPORATE BONDS — 137.2%
AIRLINES — 4.3%
American Airlines, Inc., Nt, 3.363%, 10/18/09 ^3,9	$	369	$	334,312	0.6	%
American Airlines, Pass Through Trust 1991, Collateral Trust Notes, 10.180%, 01/02/13 ⁹		1,054		590,136	1.0
American Airlines, Pass Through Trust 1991, Private Placement, Nt, 10.320%, 07/30/14 ^2,9		670		274,812	0.5
Continental Airlines, Inc., Pass Thru Cert, 9.798%, 04/01/21 ¹⁰		1,401		770,608	1.4
Continental Airlines, Inc., Unsubordinated, 8.750%, 12/01/11		86		47,515	0.1
Delta Air Lines, Inc.,
7.111%, 09/18/11		300		261,000	0.5
8.300%, 12/15/29 ^1,4,6		1,145		6,985	0.0	¹²
10.125%, 05/15/10 ^1,4		500		3,050	0.0	¹²
UAL Pass Through Trust, Series 2007-1, Private Placement, Nt, VAR, 4.025%, 07/02/14 ^2,9		177		69,188	0.1
7.336%, 07/02/19 ²		89		46,261	0.1

				2,403,867	4.3
AUTO COMPONENTS — 0.0% ¹²
Delphi Corp., 7.125%, 05/01/29 ^1,4		725		10,875	0.0	¹²

AUTOMOBILES — 1.3%
Ford Motor Co., Debentures,
6.625%, 02/15/28		120		36,000	0.1
7.125%, 11/15/25		400		120,000	0.2
7.700%, 05/15/97		650		175,500	0.3
Ford Motor Co., Nt, 9.980%, 02/15/47		400		120,000	0.2
General Motors Corp., Debentures,
6.750%, 05/01/28		50		5,750	0.0	¹²
8.100%, 06/15/24 ¹⁰		1,725		202,687	0.4
8.375%, 07/15/33		450		54,000	0.1

				713,937	1.3
BEVERAGES — 2.9%
Constellation Brands, Inc., Sr Nt,
7.250%, 05/15/17		500		475,000	0.8
8.375%, 12/15/14		1,025		1,030,125	1.8
FBG Finance Ltd., Private Placement, (Australia), 5.125%, 06/15/15 ²		175		148,953	0.3

				1,654,078	2.9


Description	Par (000)		Value		Percent of Net Assets*

BROADCASTING & CABLE TV — 2.8%
Adelphia Communications Corp., 6.000%, 02/15/06 ^1,4	$	125	$	12	0.0	% ¹²
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		22,696	0.0	¹²
Cablevision Systems Corp., Nt, 8.000%, 04/15/12		450		437,625	0.8
DirecTV Holdings LLC/DirecTV Financing Co., Private Placement, 7.625%, 05/15/16 ²		250		245,000	0.4
DirecTV Holdings LLC/DirecTV Financing Co., Sr Nt, 8.375%, 03/15/13		500		505,625	0.9
DISH DBS Corp.,
7.000%, 10/01/13		150		139,125	0.3
7.750%, 05/31/15		250		230,000	0.4

				1,596,458	2.8
BUILDING PRODUCTS — 0.2%
AMH Holdings, Inc., Sr Nt, SUB, 11.250%, 03/01/14 ⁷		400		120,000	0.2

CHEMICALS — 3.9%
Airgas, Inc., Private Placement, 7.125%, 10/01/18 ²		250		240,000	0.4
Mosaic Co. (The), Private Placement, Sr Nt, 7.375%, 12/01/14 ²		125		122,500	0.2
7.625%, 12/01/16 ²		125		122,500	0.2
PolyOne Corp., Nt, 8.875%, 05/01/12 ¹⁰		1,750		761,250	1.4
Sterling Chemicals, Inc., 10.250%, 04/01/15		350		297,500	0.5
Terra Capital, Inc., Sr Nt, 7.000%, 02/01/17		525		483,000	0.9
Westlake Chemical Corp., 6.625%, 01/15/16		250		175,000	0.3

				2,201,750	3.9
COMMERCIAL SERVICES & SUPPLIES — 2.8%
Cenveo Corp., Private Placement, 10.500%, 08/15/16 ²		1,000		561,250	1.0
Cenveo Corp., Sr Sub Nt, 7.875%, 12/01/13		325		169,000	0.3
Harland Clarke Holdings Corp., VAR, 5.984%, 05/15/15		200		70,000	0.1

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

Statement of Net Assets Applicable to Common Stockholders (continued)

As of March 31, 2009 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

COMMERCIAL SERVICES & SUPPLIES — (continued)
9.500%, 05/15/15	$	450	$	198,563	0.4	%
Quebecor World Capital Corp., Sr Nt, (Canada),
6.125%, 11/15/13 ^1,4,10		1,100		19,250	0.1
8.750%, 03/15/16 ^1,2,4,10		500		17,500	0.0	¹²
Quebecor World, Inc., Sr Nt, (Canada), 9.750%, 01/15/15 ^1,2,4,10		450		15,750	0.0	¹²
Waste Management, Inc., 7.375%, 03/11/19		500		509,962	0.9

				1,561,275	2.8
COMPUTERS & PERIPHERALS — 0.3%
Seagate Technology HDD Holdings, (Cayman Islands), 6.800%, 10/01/16		250		145,000	0.3

CONSTRUCTION ENGINEERING — 1.1%
United Rentals North America, Inc., Co Guar, 6.500%, 02/15/12		750		600,000	1.1

CONSTRUCTION MATERIALS — 0.7%
Hanson Australia Funding Ltd., (Australia), 5.250%, 03/15/13		425		187,000	0.3
Hanson Ltd., (United Kingdom), 6.125%, 08/15/16		500		215,000	0.4

				402,000	0.7
CONSUMER FINANCE — 4.3%
ACE Cash Express, Inc., Private Placement, Sr Nt, 10.250%, 10/01/14 ^2,9		1,000		250,000	0.4
Ford Motor Credit Co. LLC, VAR, 4.010%, 01/13/12		1,000		630,000	1.1
Ford Motor Credit Co. LLC, Nt,
8.000%, 12/15/16 ¹⁰		700		460,062	0.8
8.625%, 11/01/10 ¹⁰		555		442,058	0.8
GMAC LLC, Private Placement, VAR, 3.461%, 12/01/14 ²		307		153,500	0.3
6.625%, 05/15/12 ²		158		105,991	0.2
8.000%, 11/01/31 ²		767		369,050	0.7

				2,410,661	4.3
CONSUMER PRODUCTS — 2.9%
Central Garden and Pet Co., 9.125%, 02/01/13		175		138,250	0.2
Jarden Corp., 7.500%, 05/01/17 ⁶		1,300		1,046,500	1.9
Spectrum Brands, Inc., Sr Nt,
7.375%, 02/01/15 ^1,4		1,075		268,750	0.5


Description	Par (000)		Value		Percent of Net Assets*

CONSUMER PRODUCTS — (continued)
12.500%, 10/02/13 ^1,4,6	$	725	$	199,375	0.3	%

				1,652,875	2.9
CONTAINERS & PACKAGING — 2.5%
Berry Plastics Corp., VAR, 5.844%, 02/15/15		400		290,000	0.5
Berry Plastics Holding Corp., Nt, 8.875%, 09/15/14		400		224,000	0.4
Constar International, Inc., Co. Guar., VAR, 5.524%, 02/15/12		750		480,000	0.8
Constar International, Inc., Sr Sub Nt, 11.000%, 12/01/12 ^1,4,10		790		15,800	0.0	¹²
Plastipak Holdings, Inc., Private Placement, Sr Nt, 8.500%, 12/15/15 ²		300		210,000	0.4
Portola Packaging, Inc., Sr Nt, 8.250%, 02/01/12 ^1,3,4,9		270		97,537	0.2
Solo Cup Co., Sr Nt, 8.500%, 02/15/14		150		109,500	0.2

				1,426,837	2.5
DISTRIBUTORS — 0.5%
American Tire Distributors, Inc., Nt, 10.750%, 04/01/13		435		304,500	0.5

DIVERSIFIED CONSUMER SERVICES — 5.9%
Allied Waste North America, Inc., Sr Nt,
6.125%, 02/15/14		500		470,000	0.8
6.875%, 06/01/17		250		227,500	0.4
Knowledge Learning Corp., Inc., Private Placement, Sr Sub Nt, 7.750%, 02/01/15 ²		700		563,500	1.1
Mac-Gray Corp., Sr Nt, 7.625%, 08/15/15		650		600,438	1.1
Service Corp. International, 7.000%, 06/15/17		750		637,500	1.1
Sotheby’s, Private Placement, 7.750%, 06/15/15 ²		250		182,500	0.3
Stewart Enterprises, Inc., Sr Nt, 6.250%, 02/15/13 ¹⁰		724		608,160	1.1

				3,289,598	5.9
DIVERSIFIED FINANCIAL SERVICES — 0.2%
Goldman Sachs Capital II, VAR, 5.793%, 06/01/12 ¹⁴		250		104,085	0.2

DIVERSIFIED MANUFACTURING — 2.3%
Polypore, Inc., Sr Sub Nt, 8.750%, 05/15/12 ¹⁰		1,789		1,305,970	2.3

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

Statement of Net Assets Applicable to Common Stockholders (continued)

As of March 31, 2009 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

DIVERSIFIED TELECOMMUNICATION SERVICES — 6.1%
Level 3 Financing, Inc., Co. Guar, 9.250%, 11/01/14 ¹⁰	$	800	$	552,000	1.0	%
Level 3 Financing, Inc., Sr Nt, 12.250%, 03/15/13		200		150,000	0.3
Qwest Corp., Sr Nt, 7.625%, 06/15/15 ¹⁰		1,650		1,485,000	2.6
Time Warner Telecom Holdings, Inc., Sr Nt, 9.250%, 02/15/14 ¹⁰		500		482,500	0.9
Windstream Corp., 8.125%, 08/01/13		750		738,750	1.3

				3,408,250	6.1
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 2.0%
Flextronics International Ltd., Debentures, (Singapore), 6.250%, 11/15/14		210		177,450	0.3
Intcomex, Inc., Sec’d Nt, 11.750%, 01/15/11 ⁹		1,100		352,000	0.6
Sanmina-SCI Corp., 6.750%, 03/01/13		200		78,000	0.1
Sanmina-SCI Corp., Private Placement, Sr Nt, VAR, 4.070%, 06/15/14 ²		300		165,000	0.3
Smart Modular Technologies WWH, Inc., Sr Nt, (Cayman Islands), VAR, 6.935%, 04/01/12 ^3,9		423		370,078	0.7

				1,142,528	2.0
ENERGY EQUIPMENT & SERVICES — 3.6%
Bristow Group, Inc., Co Guar, 6.125%, 06/15/13		250		202,500	0.4
Calfrac Holdings LP, Private Placement, Debentures, 7.750%, 02/15/15 ²		250		118,750	0.2
Forbes Energy Services LLC/Forbes Energy Capital, Inc., 11.000%, 02/15/15		750		446,250	0.8
Helix Energy Solutions Group, Inc., Private Placement, 9.500%, 01/15/16 ²		1,000		590,000	1.0
PHI, Inc., Co Guar, 7.125%, 04/15/13		783		482,524	0.9
Pride International, Inc., Sr Nt, 7.375%, 07/15/14		200		197,000	0.3

				2,037,024	3.6
FOOD & STAPLES RETAILING — 4.2%
Golden State Foods Corp., Private Placement, Sr Sub Nt, 9.240%, 01/10/12 ^2,8,9		1,550		1,571,312	2.8
Rite Aid Corp., 10.375%, 07/15/16 ⁶		800		480,000	0.9
Rite Aid Corp., Debentures, 7.500%, 03/01/17		600		309,000	0.5

				2,360,312	4.2


Description	Par (000)		Value		Percent of Net Assets*

FOOD PRODUCTS — 2.3%
Chiquita Brands International, Inc., Sr Nt, 8.875%, 12/01/15 ⁶	$	699	$	524,250	1.0	%
Dole Food Co., Inc., Sr Nt, 13.875%, 03/15/14 ²		250		243,125	0.4
Eurofresh, Inc., Private Placement, Nt, 11.500%, 01/15/13 ^1,4,9		2,367		520,740	0.9
Tom’s Foods, Inc., Sr Nt, 10.500%, 11/01/04 ^1,3,4,9		872		8,718	0.0	¹²

				1,296,833	2.3
GAMING — 3.6%
FireKeepers Development Authority, Private Placement, 13.875%, 05/01/15 ²		75		45,750	0.1
Isle of Capri Casinos, Inc., Sr Nt, 7.000%, 03/01/14		400		236,000	0.4
Mandalay Resort Group, Sr Nt, 6.375%, 12/15/11		500		175,000	0.3
Mashantucket Western Pequot Tribe, Private Placement, 8.500%, 11/15/15 ²		1,320		224,400	0.4
MGM Mirage, Co Guar, 7.625%, 01/15/17 ⁶		150		53,250	0.1
MGM Mirage, Sr Nt, 6.750%, 09/01/12		150		52,500	0.1
Seminole Hard Rock Entertainment, Inc., Private Placement, VAR, 3.820%, 03/15/14 ²		500		260,000	0.5
Shingle Springs Tribal Gaming Authority, Private Placement, Sr Nt, 9.375%, 06/15/15 ²		1,000		415,000	0.7
Wynn Las Vegas Capital Corp., Nt, 6.625%, 12/01/14 ⁶		750		566,250	1.0

				2,028,150	3.6
HEALTH CARE EQUIPMENT & SUPPLIES — 0.4%
Biomet, Inc., Sr Nt, 10.000%, 10/15/17		250		247,500	0.4

HEALTH CARE PROVIDERS & SERVICES — 6.8%
CHS/Community Health Systems, Inc., 8.875%, 07/15/15 ⁶		800		756,000	1.3
FMC Finance III S.A., (Luxembourg), 6.875%, 07/15/17		500		488,750	0.9
HCA, Inc., Sec’d Nt, 9.250%, 11/15/16		1,000		910,000	1.6
Multiplan, Inc., Private Placement, 10.375%, 04/15/16 ²		1,000		815,000	1.4

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

Statement of Net Assets Applicable to Common Stockholders (continued)

As of March 31, 2009 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

HEALTH CARE PROVIDERS & SERVICES — (continued)
TeamHealth, Inc., Sr Sub Nt, 11.250%, 12/01/13	$	225	$	195,750	0.4	%
Tenet Healthcare Corp., Sr Nt, 9.875%, 07/01/14 ¹⁰		850		663,000	1.2

				3,828,500	6.8
HOTELS, RESTAURANTS & LEISURE — 1.2%
Six Flags Operations, Inc., Private Placement, 12.250%, 07/15/16 ²		872		470,880	0.8
Speedway Motorsports, Inc., Sr Sub Nt, 6.750%, 06/01/13		250		209,375	0.4

				680,255	1.2
HOUSEHOLD DURABLES — 1.3%
K Hovnanian Enterprises, Inc., Private Placement, Debentures, 11.500%, 05/01/13		500		348,125	0.6
KB Home, Sr Nt, 5.875%, 01/15/15		250		193,625	0.4
Meritage Homes Corp., Sr Nt, 7.000%, 05/01/14		250		160,000	0.3

				701,750	1.3
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 8.5%
Calpine Generating Co. LLC, Sec’d Nt, VAR, 4,823.931%, 04/01/11 ^1,4		1,000		95,000	0.2
Dynegy Holdings, Inc., Sr Unsec’d Nt, 7.125%, 05/15/18		500		265,000	0.5
Dynegy Roseton/Danskammer Pass Through Trust, 7.670%, 11/08/16		500		378,750	0.7
Edison Mission Energy, Sr Nt, 7.750%, 06/15/16		1,000		760,000	1.3
Mirant Americas Generation LLC, Sr Nt, 8.300%, 05/01/11 ¹⁰		1,250		1,212,500	2.1
8.500%, 10/01/21		500		370,000	0.7
NRG Energy, Inc., Sr Nt, 7.250%, 02/01/14		250		235,000	0.4
7.375%, 01/15/17		1,375		1,278,750	2.3
Texas Competitive Electric Holdings Co. LLC, 10.250%, 11/01/15		350		175,000	0.3

				4,770,000	8.5
INDUSTRIAL CONGLOMERATES — 3.4%
JB Poindexter & Co., Inc., Co Guar, 8.750%, 03/15/14 ¹⁰		2,084		1,250,400	2.2


Description	Par (000)		Value		Percent of Net Assets*

INDUSTRIAL CONGLOMERATES — (continued)
Milacron Escrow Corp., Sec’d Nt, 11.500%, 05/15/11 ^1,3,4,10	$	1,445	$	635,800	1.2	%

				1,886,200	3.4
INDUSTRIAL MACHINERY — 2.3%
General Cable Corp., VAR, 3.810%, 04/01/15		250		176,875	0.3
RBS Global, Inc. & Rexnord Corp., Sr Nt, 8.875%, 09/01/16 ¹⁰		1,150		862,500	1.5
RBS Global, Inc. & Rexnord Corp., Sr Sub Nt, 11.750%, 08/01/16 ⁶		410		250,100	0.5

				1,289,475	2.3
INSURANCE — 1.8%
Crum and Forster Holdings Corp., 7.750%, 05/01/17		600		468,000	0.8
HUB International Holdings, Inc., Private Placement, 9.000%, 12/15/14 ²		500		316,250	0.6
10.250%, 06/15/15 ²		500		237,500	0.4

				1,021,750	1.8
IT SERVICES — 0.7%
Unisys Corp., Sr Nt, 8.000%, 10/15/12		500		125,625	0.2
12.500%, 01/15/16		1,000		261,250	0.5

				386,875	0.7
LEISURE EQUIPMENT & PRODUCTS — 0.3%
Eastman Kodak Co., 7.250%, 11/15/13		150		84,750	0.2
True Temper Sports, Inc., Sr Nt, 8.375%, 09/15/11 ^1,4,9		490		68,600	0.1

				153,350	0.3
MARINE — 0.8%
Ultrapetrol Bahamas Ltd., 1st Mtg, (Bahamas), 9.000%, 11/24/14		700		451,500	0.8

MEDIA — 12.2%
Barrington Broadcasting Group LLC and Barrington Broadcasting Capital Corp., Sr Sub Nt, 10.500%, 08/15/14		700		134,750	0.2
Block Communications, Inc., Private Placement, Sr Nt, 8.250%, 12/15/15 ²		800		594,000	1.1
CanWest MediaWorks LP, Private Placement, Sr Nt, (Canada), 9.250%, 08/01/15 ²		750		52,500	0.1

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

Statement of Net Assets Applicable to Common Stockholders (continued)

As of March 31, 2009 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

MEDIA — (continued)
CCO Holdings LLC/CCO Holdings Capital Corp., 8.750%, 11/15/13 ^1,4	$	800	$	668,000	1.2	%
Charter Communications Operating LLC/Charter Communications Operating Capital, Private Placement, Nt, 10.875%, 09/15/14 ^1,2,4		500		485,000	0.9
Fisher Communications, Inc., Sr Nt, 8.625%, 09/15/14		500		425,000	0.7
HSN, Inc., Private Placement, Sr Nt, 11.250%, 08/01/16 ²		150		102,000	0.2
Idearc, Inc., Sr Nt, 8.000%, 11/15/16 ^1,4		850		22,313	0.0	¹²
Intelsat Subsidiary Holding Co., Ltd., Private Placement, (Bermuda), 8.875%, 01/15/15 ²		1,250		1,165,625	2.1
Lamar Media Corp., Sr Sub Nt,
6.625%, 08/15/15		250		180,000	0.3
7.250%, 01/01/13 ⁶		39		33,589	0.1
LBI Media, Inc., Sr Disc Nt, SUB, 11.000%, 10/15/13 ⁷		625		210,937	0.4
Nexstar Finance Holdings LLC/Nexstar Finance Holdings, Inc., Sr Disc Nt, SUB, 11.375%, 04/01/13 ⁷		479		172,579	0.3
Quebecor Media, Inc., Sr Nt, (Canada), 7.750%, 03/15/16 ¹⁰		750		570,000	1.0
Radio One, Inc., Sr Sub Nt, 6.375%, 02/15/13		500		107,500	0.2
RH Donnelley, Inc., Private Placement, 11.750%, 05/15/15 ²		795		103,350	0.2
Valassis Communications, Inc., Private Placement, 8.250%, 03/01/15		1,500		646,875	1.1
Virgin Media Finance plc, Sr Nt, (United Kingdom), 9.125%, 08/15/16		1,250		1,162,500	2.1

				6,836,518	12.2
METALS & MINING — 3.3%
AK Steel Corp., Co. Guar, Sr Nt, 7.750%, 06/15/12		800		628,000	1.1
FMG Finance Pty Ltd., Private Placement, (Australia), 10.625%, 09/01/16 ²		250		210,000	0.4
Wolverine Tube, Inc., Sr Nt, 10.500%, 04/01/09		1,145		984,700	1.8

				1,822,700	3.3


Description	Par (000)		Value		Percent of Net Assets*

MULTILINE RETAIL — 0.6%
Dollar General Corp., PIK, 11.875%, 07/15/17 ⁶	$	100	$	98,250	0.2	%
Dollar General Corp., Sr Nt, 10.625%, 07/15/15		250		249,375	0.4

				347,625	0.6
MULTI-UTILITIES — 4.8%
AES Corp. (The), Private Placement, 8.750%, 05/15/13 ²		1,000		985,000	1.8
Energy Future Holdings Corp., Private Placement, Nt, 10.875%, 11/01/17		450		290,250	0.5
Reliant Energy, Inc., 7.625%, 06/15/14		500		405,000	0.7
Reliant Energy, Inc., Sec’d Nt, 6.750%, 12/15/14 ¹⁰		1,100		1,012,000	1.8

				2,692,250	4.8
OIL, GAS & CONSUMABLE FUELS — 10.5%
Arch Western Finance LLC, 6.750%, 07/01/13		250		228,750	0.4
El Paso Corp., Sr Nt, 6.875%, 06/15/14		150		133,608	0.2
El Paso Performance-Linked Trust, Private Placement, Sr Nt, 7.750%, 07/15/11 ²		500		479,283	0.9
Encore Acquisition Co., Sr Nt, 6.000%, 07/15/15 ¹⁰		1,000		735,000	1.3
Forest Oil Corp., Nt, 7.250%, 06/15/19		269		212,510	0.4
Frontier Oil Corp., Debentures, 8.500%, 09/15/16		500		492,500	0.9
Massey Energy Co., Nt, 6.875%, 12/15/13		450		391,500	0.7
Newfield Exploration Co., Nt, 6.625%, 09/01/14		200		181,000	0.3
Northwest Pipeline Corp., Sr Nt, 7.000%, 06/15/16		500		504,532	0.9
Range Resources Corp., 7.250%, 05/01/18		25		22,375	0.0	¹²
Range Resources Corp., Sr Sub Nt, 7.500%, 05/15/16		267		246,307	0.4
Swift Energy Co., Sr Nt, 7.125%, 06/01/17		1,260		730,800	1.3
Targa Resources Partners LP, Private Placement, 8.250%, 07/01/16 ²		280		203,000	0.4
Tesoro Corp., 6.250%, 11/01/12		571		498,197	0.9

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

Statement of Net Assets Applicable to Common Stockholders (continued)

As of March 31, 2009 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

OIL, GAS & CONSUMABLE FUELS — (continued)
W&T Offshore, Inc., Private Placement, Sr Nt, 8.250%, 06/15/14 ²	$	1,000	$	640,000	1.1	%
Williams Partners LP/Williams Partners Finance Corp., Sr Nt, 7.250%, 02/01/17		250		212,500	0.4

				5,911,862	10.5
PAPER & FOREST PRODUCTS — 2.6%
Abitibi-Consolidated Co. of Canada, Sr Nt, (Canada),
6.000%, 06/20/13 ^1,4		630		56,700	0.1
8.375%, 04/01/15 ^1,4		1,395		111,600	0.2
Abitibi-Consolidated, Inc., Sr Nt, (Canada), 8.850%, 08/01/30 ^1,4		25		2,000	0.0	¹²
Bowater Canada Finance Corp., Nt, (Canada), 7.950%, 11/15/11 ^1,4		500		45,000	0.1
Cascades, Inc., Sr Nt, (Canada), 7.250%, 02/15/13		168		93,660	0.2
Domtar Corp., 7.125%, 08/15/15		500		335,000	0.6
Georgia-Pacific LLC, Private Placement, Co Guar, 7.000%, 01/15/15 ²		125		116,875	0.2
7.125%, 01/15/17 ²		325		300,625	0.5
Jefferson Smurfit Corp., Sr Nt, 8.250%, 10/01/12 ^1,4		150		18,750	0.0	¹²
NewPage Corp., Sr Nt,
10.000%, 05/01/12		200		69,500	0.1
12.000%, 05/01/13		800		168,000	0.3
Smurfit-Stone Container Enterprises, Inc., Sr Nt, 8.000%, 03/15/17 ^1,4,10		500		60,000	0.1
Verso Paper Holdings LLC/Verso Paper, Inc., Sr Nt, 9.125%, 08/01/14		250		93,750	0.2

				1,471,460	2.6
PHARMACEUTICALS — 2.8%
Celtic Pharma Phinco B.V., (Bermuda), 17.000%, 06/15/12 ⁹		1,345		874,540	1.6
Elan Finance plc/Elan Finance Corp., Sr Nt, (Ireland), VAR, 5.234%, 11/15/11		830		680,600	1.2

				1,555,140	2.8
REAL ESTATE INVESTMENT TRUSTS (REITS) — 0.1%
HRPT Properties Trust, 5.750%, 02/15/14		63		41,534	0.1


Description	Par (000)		Value		Percent of Net Assets*

ROAD & RAIL — 1.7%
Kansas City Southern Railway, Sr Nt, 8.000%, 06/01/15	$	500	$	413,750	0.7	%
Quality Distribution LLC/QD Capital Corp., Co Guar, VAR,
5.594%, 01/15/12 ⁹		850		289,000	0.5
9.000%, 11/15/10 ⁹		750		240,000	0.5

				942,750	1.7
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.7%
Amkor Technology, Inc., Sr Nt, 7.750%, 05/15/13		300		241,500	0.5
MagnaChip Semiconductor S.A./MagnaChip Semiconductor Finance Co., Sec’d Nt, (Luxembourg), VAR, 0.000%, 12/15/11 ^1,4,9		735		7,350	0.0	¹²
6.875%, 12/15/11 ^1,4,9		750		7,500	0.0	¹²
NXP BV/NXP Funding LLC, Sr Nt, (Netherlands), VAR, 3.844%, 10/15/13		400		67,500	0.1
7.875%, 10/15/14		1,640		381,300	0.7
Spansion, Inc., Private Placement, VAR, 0.000%, 06/01/13 ^1,4		1,000		225,000	0.4

				930,150	1.7
SPECIALTY RETAIL — 2.7%
ACE Hardware Corp., Private Placement, Sr Nt, 9.125%, 06/01/16 ²		250		205,000	0.4
Collective Brands, Inc., 8.250%, 08/01/13		500		395,000	0.7
General Nutrition Centers, Inc., PIK, 6.404%, 03/15/14		461		283,515	0.5
PEP Boys-Manny Moe & Jack, Sr Nt, 7.500%, 12/15/14		300		166,500	0.3
Southern States Coop, Inc., Private Placement, Sr Nt, 11.000%, 11/01/10 ^2,9		500		445,000	0.8

				1,495,015	2.7
TEXTILES, APPAREL & LUXURY GOODS — 0.8%
Broder Bros. Co., Sr Nt, 11.250%, 10/15/10 ¹⁰		835		129,425	0.2
Hanesbrands, Inc., Sr Nt, VAR, 5.697%, 12/15/14		500		332,500	0.6

				461,925	0.8

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

Statement of Net Assets Applicable to Common Stockholders (continued)

As of March 31, 2009 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

TOBACCO — 1.7%
Alliance One International, Inc., Sr Nt, 11.000%, 05/15/12 ¹⁰	$	900	$	837,000	1.5	%
12.750%, 11/15/12		150		126,000	0.2

				963,000	1.7
TRANSPORTATION SERVICES — 0.0% ¹²
IdleAire Technologies Corp., Sr Disc Nt, SUB, 13.000%, 12/15/12 ^1,3,4,7,9		1,415		14,150	0.0	¹²

WIRELESS TELECOMMUNICATION SERVICES — 3.5%
iPCS, Inc., Sr Nt, VAR, 3.295%, 05/01/13		440		330,000	0.6
MetroPCS Wireless, Inc., Sr Nt, 9.250%, 11/01/14		750		727,500	1.3
Sprint Nextel Corp., Nt, 6.000%, 12/01/16		1,300		929,500	1.6

				1,987,000	3.5

Total Corporate Bonds
(Cost $124,758,710)				77,067,097	137.2

LOAN PARTICIPATIONS & ASSIGNMENTS — 30.5%
AIRLINES — 0.7%
Delta Airlines, Inc., 1st Lien Term Loan,
0.269%, 04/30/14		27		20,593	0.1
2.508%, 04/30/14		468		351,894	0.6

				372,487	0.7
AUTOMOBILES — 0.8%
Ford Motor Co., Term Loan B, 3.560%, 12/15/13		960		459,692	0.8

BUILDING PRODUCTS — 0.6%
Jacuzzi Brands, Inc., 1st Lien Term Loan B, 2.768%, 02/07/14 ⁹		444		166,446	0.3
Jacuzzi Brands, Inc., 1st Lien Term Loan, Letter of Credit, 1.120%, 02/07/14 ⁹		40		14,924	0.0	¹²
Jacuzzi Brands, Inc., 2nd Lien Term Loan Tranche B2, 7.018%, 08/07/14 ⁹		1,110		166,495	0.3

				347,865	0.6
CHEMICALS — 1.8%
Cristal Inorganic Chemicals, 1st Lien Term Loan, 3.470%, 05/15/14 ⁹		897		524,774	1.0
Cristal Inorganic Chemicals, 2nd Lien Term Loan, 6.970%, 05/15/14 ⁹		500		245,000	0.5


Description	Par (000)		Value		Percent of Net Assets*

CHEMICALS — (continued)
Lyondell Chemical Co., Dutch Tranche A Dollar Term Loan, 5.750%, 12/22/14	$	14	$	3,385	0.0	% ¹²
Lyondell Chemical Co., Dutch Tranche Revolving Credit Loan, 5.750%, 12/20/13		6		1,421	0.0	¹²
Lyondell Chemical Co., German Tranche B-1 Euro Term Loan, 7.000%, 12/22/14		17		4,079	0.0	¹²
Lyondell Chemical Co., German Tranche B-2 Euro Term Loan, 7.000%, 12/22/14		17		4,079	0.0	¹²
Lyondell Chemical Co., German Tranche B-3 Euro Term Loan, 7.000%, 12/22/14		17		4,079	0.0	¹²
Lyondell Chemical Co., New Money Dip Term Loan, 13.000%, 12/15/09		89		88,547	0.2
Lyondell Chemical Co., Roll-Up Dip Term Loan, 5.940%, 12/15/09		134		70,892	0.1
Lyondell Chemical Co., U.S. Tranche A Dollar Term Loan, 5.750%, 12/20/13		43		10,153	0.0	¹²
Lyondell Chemical Co., U.S. Tranche B-2 Dollar Term Loan, 7.000%, 12/20/14		75		17,702	0.0	¹²
Lyondell Chemical Co., U.S. Tranche B-3 Dollar Term Loan, 7.000%, 12/20/14		75		17,702	0.0	¹²
Lyondell Chemical Co., U.S. Tranche Primary Revolving Credit Loan, 5.750%, 12/20/14		23		5,329	0.0	¹²
Lyondell Chemical, U.S. Tranche B-1 Dollar Term Loan, 7.000%, 12/20/14		75		17,702	0.0	¹²

				1,014,844	1.8
COMMERCIAL SERVICES & SUPPLIES — 1.0%
Clarke American Corp., Term Loan B,
3.018%, 06/27/14		478		284,972	0.5
3.708%, 06/27/14		84		49,791	0.1
3.720%, 06/27/14		423		252,277	0.4

				587,040	1.0
DIVERSIFIED MANUFACTURING — 1.3%
BOC Edwards, 1st Priority Lien, 2.518%, 05/31/14		1,206		723,507	1.3

ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.1%
Isola Group S.A.R.L., 1st Lien Term Loan, 9.270%, 12/18/12 ^1,4,9		445		356,053	0.6

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

Statement of Net Assets Applicable to Common Stockholders (continued)

As of March 31, 2009 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — (continued)
Isola Group S.A.R.L., 2nd Lien Term Loan, 15.430%, 12/18/13 ^1,4,9	$	250	$	50,000	0.1	%
Sirius Computer Solutions, 2nd Lien Term Loan, 7.220%, 05/30/13 ⁹		1,000		200,000	0.4

				606,053	1.1
FOOD & STAPLES RETAILING — 0.6%
Rite Aid Corp., Term Loan 3, 6.000%, 06/04/14		499		352,863	0.6

GAMING — 1.9%
Fontainebleau Las Vegas Holdings LLC, Delayed Draw, Term Loan B, 3.768%, 06/06/14		167		25,562	0.0	¹²
Fontainebleau Las Vegas Holdings LLC, Initial Term Loan, 4.527%, 06/06/14		333		51,103	0.1
Harrah’s Operating Co., Inc., Term B-2 Loan, 4.159%, 01/28/15		249		149,275	0.3
Venetian Macau, Term Loan B, 2.770%, 05/25/13		1,333		860,840	1.5

				1,086,780	1.9
HEALTH CARE PROVIDERS & SERVICES — 0.7%
HCA, Inc., Term Loan B, 3.470%, 11/18/13		478		404,579	0.7

HOTELS, RESTAURANTS & LEISURE — 1.0%
ARAMARK Corp., Letter of Credit, 1.000%, 01/26/14		20		17,422	0.0	¹²
ARAMARK Corp., Term Loan, 3.095%, 01/26/14		315		274,235	0.5
Outback Steakhouse, Prefunded RC Commitment, 1.140%, 06/14/13		5		2,571	0.0	¹²
Outback Steakhouse, Prerefunded RC Commitment, (Germany), 4.500%, 06/14/13		1		351	0.0	¹²
Outback Steakhouse, Term Loan B, 2.813%, 06/14/14		447		243,403	0.5

				537,982	1.0
HOUSEHOLD PRODUCTS — 0.9%
Spectrum Brands, Inc., Letter of Credit, 0.347%, 03/30/13 ^1,4		24		17,147	0.0	¹²
Spectrum Brands, Inc., Term Loan B,
5.398%, 03/30/13 ^1,4		155		109,681	0.2


Description	Par (000)		Value		Percent of Net Assets*

HOUSEHOLD PRODUCTS — (continued)
6.250%, 03/30/13 ^1,4	$	515	$	365,114	0.7	%

				491,942	0.9
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 5.1%
Calpine Corp., 1st Priority Term Loan, 4.095%, 03/29/14		2,428		1,846,725	3.3
Texas Competitive Electric Holdings Co. LLC, Initial Tranche B-2 Term Loan,
3.979%, 10/10/14		5		3,287	0.0	¹²
4.018%, 10/10/14		8		4,932	0.0	¹²
4.033%, 10/10/14		975		641,063	1.2
TPF Generation Holdings LLC, 2nd Lien Term Loan, 4.768%, 12/15/14		500		350,000	0.6

				2,846,007	5.1
INSURANCE — 0.8%
HMSC Corp., First Lien, 2.768%, 11/16/11		980		470,400	0.8

IT SERVICES — 3.5%
Compucom Systems, Inc., Term Loan, 4.020%, 08/23/14 ⁹		914		712,632	1.3
First Data Corp., Initial Tranche B-1 Term Loan,
3.268%, 09/24/14		23		15,164	0.0	¹²
3.272%, 09/24/14		371		249,951	0.4
First Data Corp., Initial Tranche B-3 Term Loan,
3.268%, 09/24/14		85		56,910	0.1
3.272%, 09/24/14		1,394		938,500	1.7

				1,973,157	3.5
LEISURE EQUIPMENT & PRODUCTS — 0.1%
True Temper Sports, Inc., 2nd Lien Term Loan, 6.625%, 06/30/11 ^1,4,9		77		37,214	0.1

MEDIA — 4.7%
CCO Holdings LLC, 3rd Lien Term Loan, 3.959%, 09/06/14		279		182,840	0.3
High Plains Broadcasting Operating Co. LLC, Term Loan, 7.250%, 09/14/16		194		77,670	0.1
Idearc, Inc., Term Loan B, 3.220%, 11/17/14		494		192,385	0.4
Newport Television LLC, Term Loan, 8.000%, 09/14/16		734		293,580	0.5

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

Statement of Net Assets Applicable to Common Stockholders (continued)

As of March 31, 2009 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

MEDIA — (continued)
Sirius Satellite Radio, Term Loan, 2.813%, 12/01/12	$	493	$	354,600	0.6	%
Univision Communications, Inc., 1st Lien Term Loan, 2.768%, 09/20/14		91		45,579	0.1
2.768%, 09/20/14		1,409		709,011	1.3
WMG Acquisition Corp., Term Loan,
2.508%, 02/28/11		65		57,058	0.1
2.518%, 02/28/11		60		52,242	0.1
2.533%, 02/28/11		82		71,323	0.1
2.564%, 02/28/11		102		89,535	0.2
3.125%, 02/28/11		65		57,056	0.1
3.159%, 02/28/11		129		112,405	0.2
3.249%, 02/28/11		196		171,176	0.3
3.256%, 02/28/11		196		171,176	0.3

				2,637,636	4.7
MULTILINE RETAIL — 1.6%
Dollar General Corp., Tranche B-1 Term Loan, 3.268%, 07/07/14		248		218,755	0.4
3.296%, 07/07/14		56		47,650	0.1
3.306%, 07/07/14		64		54,835	0.1
3.924%, 07/07/14		383		338,466	0.6
Dollar General Corp., Tranche B-2 Term Loan, 3.268%, 07/07/14		250		214,298	0.4

				874,004	1.6
PAPER & FOREST PRODUCTS — 1.8%
Abitibi-Consolidated Co. of Canada, Term Loan, (Canada), 11.500%, 03/30/09		694		503,003	0.9
NewPage Corp., Term Loan, 5.000%, 12/21/14		743		507,024	0.9

				1,010,027	1.8
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.5%
Freescale Semiconductor, Inc., Incremental Term Loan, 12.500%, 12/15/14		151		78,772	0.1
Freescale Semiconductor, Inc., Term Loan, 2.259%, 11/29/13		494		201,568	0.4

				280,340	0.5
Total Loan Participations & Assignments
(cost $27,017,181)				17,114,419	30.5


Description	Par (000)			Value		Percent of Net Assets*

ASSET-BACKED SECURITIES — 2.6%
Countrywide Asset-Backed Certificates, Series 2004-13, Class MV8, VAR, 2.222%, 01/25/35 ⁹	$	115		$	8,541	0.0	% ¹²
Long Beach Mortgage Loan Trust, Series 2004-5, Class M6, VAR, 3.022%, 09/25/34 ⁹		73			11,693	0.0	¹²
Unipac IX LLC, 13.000%, 04/11/13 ^3,9		1,500			1,461,038	2.6

Total Asset-Backed Securities
(cost $1,641,432)					1,481,272	2.6

Total Fixed Income Investments
(cost $153,417,323)					95,662,788	170.3

COMMON STOCKS — 0.5%
AIRLINES — 0.0% ¹²
Delta Air Lines, Inc. ¹		3			14,283	0.0	¹²

BUILDING PRODUCTS — 0.1%
Lexington Coal Co. ^1,3		25			26,323	0.1

CONTAINERS & PACKAGING — 0.0%
Glasstech, Inc., Class C ^1,3		—	¹¹		—	0.0

DIVERSIFIED TELECOMMUNICATION SERVICES — 0.2%
AboveNet, Inc. ¹		3			115,335	0.2
XO Holdings, Inc. ¹		1			101	0.0	¹²

					115,436	0.2
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.0% ¹²
Mirant Corp. ¹		1			10,648	0.0	¹²

MEDIA — 0.2%
Adelphia Recovery Trust ^1,3		157			1	0.0	¹²
Time Warner Cable, Inc., Class A ⁶		5			127,274	0.2

					127,275	0.2
TEXTILES, APPAREL & LUXURY GOODS — 0.0%
Westpoint Stevens, Inc. ^1,3		14			—	0.0

Total Common Stocks
(cost $2,133,847)					293,965	0.5

PREFERRED STOCKS — 0.9%
AUTOMOBILES — 0.0% ¹²
General Motors Corp., Pfd, Series B, 5.250%		4			10,250	0.0	¹²

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

Statement of Net Assets Applicable to Common Stockholders (continued)

As of March 31, 2009 (Unaudited)


Description	Par (000)			Value		Percent of Net Assets*

COMMERCIAL BANKS — 0.4%
Royal Bank of Scotland Group plc, Pfd, (United Kingdom), Series 1, ADR, 9.118%, 03/31/10 ¹⁴	$	500		$	245,000	0.4	%

CONTAINERS & PACKAGING — 0.0%
Glasstech, Inc., Pfd, Series C ³		—	¹¹		—	0.0

DIVERSIFIED FINANCIAL SERVICES — 0.3%
Bank of America Corp., Pfd, Series L, 7.250%, 01/30/13 ¹⁴		—	¹¹		163,000	0.3

MEDIA — 0.2%
Spanish Broadcasting System, Inc., Pfd, Series B, PIK, 10.750%, 05/04/09 ^3,14		482			77,723	0.2
Total Preferred Stocks
(cost $1,121,159)					495,973	0.9

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

WARRANTS — 0.0% ¹²
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.0% ¹²
AboveNet, Inc., expiring 09/08/10 (Strike Price $24.00) ^1,3,9		1			16,443	0.0	¹²
XO Holdings, Inc., Series A, expiring 01/16/10 (Strike Price $6.25) ¹		1			6	0.0	¹²
XO Holdings, Inc., Series B, expiring 01/16/10 (Strike Price $7.50) ¹		1			6	0.0	¹²
XO Holdings, Inc., Series C, expiring 01/16/10 (Strike Price $10.00) ¹		1			2	0.0	¹²

					16,457	0.0	¹²
TRANSPORTATION SERVICES — 0.0%
IdleAire Technologies Corp., expiring 12/15/15 (Strike Price $1.00) ^1,3		1			—	0.0

Total Warrants
(cost $208,600)					16,457	0.0	¹²

Total Equity Investments
(cost $3,648,082)					806,395	1.4


Description	Par (000)		Value			Percent of Net Assets*

SHORT-TERM INVESTMENT — 1.7%
INVESTMENT COMPANY — 1.7%
JPMorgan Prime Money Market Fund, Institutional Class Shares, 0.740% ^5,13 (cost 952,067)	$	952	$	952,067		1.7	%

INVESTMENTS OF CASH COLLATERAL FOR SECURITIES ON LOAN — 6.8%
INVESTMENT COMPANY — 6.8%
JPMorgan Prime Money Market Fund, Capital Shares, 0.780% ^5,13 (cost $3,817,220)		3,817		3,817,220		6.8

TOTAL INVESTMENTS
(cost $161,834,692)				101,238,470		180.2

Payable Upon Return of Securities Loaned				(3,817,220	)	(6.8	)
Payable to Advisor				(66,241	)	(0.1	)
Payable to Directors				(3,188	)	(0.0	) ¹²
Custody Fees Payable				(5,071	)	(0.0	) ¹²
Unrealized Appreciation on Unfunded Commitments				51,864		0.1
Unrealized Depreciation on Unfunded Commitments				(424	)	(0.0	) ¹²
Unrealized Depreciation on Swap Agreements				(1,142,465	)	(2.1	)
Assets in Excess of Other Liabilities				2,928,717		5.2
Less: Outstanding Preferred Stock (1,720 shares at $25,000 per share) at liquidation value.				(43,000,000	)	(76.5	)

Net Assets Applicable to Common Stockholders			$	56,184,442		100.0

Net Asset Value Per Common Share ($56,184,442/12,950,905)			$	4.34

Cert

Certificate

Company

Disc

Discount

Guar

Guaranteed

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, 2009.

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

Statement of Net Assets Applicable to Common Stockholders (concluded)

As of March 31, 2009 (Unaudited)

Applicable to common stockholders.

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 $15,258,480 and 27.2% of net assets applicable to common stockholders.

Fair valued security. These securities amounted to $3,042,123 and 5.4% of net assets applicable to common stockholders.

⁴

Security in default.

⁵

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.

⁶

All or a portion of the security is on loan. Securities on loan have a fair market value of $3,754,187.

⁷

Step-up bond. Interest rate is effective rate as of March 31, 2009.

⁸

Restricted security. These securities amounted to $1,571,312 and 2.8% of net assets applicable to common stockholders.

⁹

Security deemed to be illiquid. These securities amounted to $10,356,227 and 18.4% of net assets applicable to common stockholders.

¹⁰

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

¹¹

Amount rounds to less than 1,000 shares.

¹²

Amount rounds to less than 0.1%.

¹³

The rate shown is the current yield as of March 31, 2009.

¹⁴

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, 2009.

As of March 31, 2009, 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	$	609,472
Aggregate gross unrealized depreciation		(61,205,694	)

Net unrealized appreciation/depreciation	$	(60,596,222	)

Federal income tax cost of investments	$	161,834,692

INTEREST RATE SWAPS — 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 0.329% to 0.564% for the period ended March 31, 2009. 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)
6/1/2005	—	$	5 million	06/01/09	4.150% monthly	1 month LIBOR monthly	0.501	%	$	(44,463	)
12/1/2005	—	$	5 million	12/01/09	4.740% monthly	1 month LIBOR monthly	0.501			(153,692	)
8/14/2006	—	$	5 million	06/01/10	5.255% monthly	1 month LIBOR monthly	0.501			(275,200	)
12/1/2006	—	$	5 million	12/01/10	5.010% monthly	1 month LIBOR monthly	0.501			(349,277	)
11/30/2007	—	$	5 million	06/01/11	4.000% monthly	1 month LIBOR monthly	0.501			(319,833	)

									$	(1,142,465	)

Represents rate in effect at March 31, 2009.

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

Statement of Financial Accounting Standards No. 157 — Fair Value Measurements — (“SFAS 157”) defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements.

SFAS 157 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 — 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 is a summary of the inputs used as of March 31, 2009, in valuing the Fund’s assets and liabilities carried at fair value:


Valuation Inputs	Investments in Securities		Appreciation in Other Financial Instruments*		Depreciation in Other Financial Instruments*
Level 1 — Quoted prices	$	5,036,941	$	—	$	—
Level 2 — Other significant observable inputs		93,159,406		—		(1,142,465	)
Level 3 — Significant unobservable inputs		3,042,123		—		—

Total	$	101,238,470	$	—	$	(1,142,465	)

Other financial instruments may include futures, forwards and swap contracts.

SFAS 157 also requires a reconciliation of assets and liabilities for which significant unobservable inputs (Level 3) were used in determining fair value:


	Investments in Securities			Other Financial Instruments*
Balance as of 12/31/08	$	2,386,844		$	—

Realized gain (loss)		(75,160	)		—
Change in unrealized appreciation (depreciation)		182,075			—
Net Amortization/Accretion		7,564			—
Net purchases (sales)		—			—
Net transfers in (out) of Level 3		540,800			—

Balance as of 03/31/09	$	3,042,123		$	—

Other financial instruments may include futures, forwards and swap contracts.

Transfers into Level 3 are valued utilizing values as of the end of the period and transfers 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, 2009, which were valued using significant unobservable inputs (Level 3) amounted to $(222,333).

ITEM 2. CONTROLS AND PROCEDURES.

(a)

The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b)

There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal controls over financial reporting.

ITEM 3. EXHIBITS.

CERTIFICATIONS PURSUANT TO RULE 30a-2(a) UNDER THE INVESTMENT COMPANY ACT OF 1940 ARE ATTACHED HERETO.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Pacholder High Yield Fund, Inc.




By:		/s/
		George C.W. Gatch President and Principal Executive Officer May 27, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.