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
Ropes & Gray 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 Funds 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, 2009
(U
NAUDITED
)
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
(Unaudited)
Dear Stockholders:
First Quarter Review
The effects of the financial crisis spread rapidly through the broader economy in the first quarter, with large numbers of layoffs announced and economists revising growth
estimates down significantly worldwide. Fixed income markets saw the initial optimism of early January fade in February and rebound in March, with some sectors increasingly influenced by government policy actions. Despite initial market skepticism
about early policy statements from the new administration, the Treasurys announcement of its Public-Private Investment Program (PPIP) and the Federal Reserves (Fed) announced purchase of Treasuries and additional purchases of agency
mortgage-backed securities (MBS) and agency debt seemed to have important impacts on fixed income markets.
For the quarter ended March 31, 2009, the Pacholder High Yield Fund, Inc. returned 8.56%, based on Net Asset Value (NAV) compared to the 1.82% average total return of the Morningstar ClosedEnd High Yield
Category, and the 5.84% return of the Credit Suisse High Yield Index, Developed Countries Only (the Index).
The Funds relative outperformance in the first quarter was due primarily to its leverage. Other contributors to the outperformance included the forest product/container,
retail and auto/transportation market segments. Performance in the financial, consumer product and food/tobacco segments detracted from the overall performance.
Unlike the equity market, the high-yield market began the quarter on a very strong note, with the Index returning 5.94% in January. The negative momentum in equities carried
into the high-yield market in February, as the Index returned -2.14%. The high-yield market followed stocks higher in March, as equity markets showed sustained upward moves for the first time in 2009. The Index ended March with a 2.09% return and a
5.84% return for the quarter. Results for the broad equity indexes during the first quarter reflected continued concern about the potential depth of the recession and questions about credit market conditions, particularly among financial stocks. The
Russell 2000, S&P 500, NASDAQ Composite and Dow Indexes returned -14.95%, -11.01%, -2.79% and -12.48%, respectively.
The trailing 12-month default rate for below-investment-grade issuers, as measured by Moodys Investors Services, rose from 4.0% at the end of 2007 to 7.4% in March 2009.
Moodys expects defaults to peak at 14.5% in the fourth quarter and gradually decline to 9.5% by April 2010.
The Fund is well diversified across issuers and industries, with investments in 200 issuers in 53 different industries. As of March 31, the largest
industry sector concentration was in media, which accounted for 9.94% of its market value. For the quarter, the average price of the index rose 2.04 points from 61.59 to 63.66, the average yield dropped 186 basis points (bps) from 18.95% to
17.09% and the spread over the comparable Treasury tightened 207 bps from 1,707 bps to 1,500 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 have failed. The weekly auction for the Auction Rate Preferred Shares (ARPS) has failed since February 13, 2008. Since that time,
a number of broker-dealers have announced that they will offer to repurchase auction rate securities from certain of their 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.
The Fund has not been able to identify financing to redeem the ARPS that satisfies this requirement. As indicated below, the Fund has made two voluntary redemptions totaling 920 shares of the 2640 outstanding shares of the ARPS. To the extent that
the Fund determines that additional redemptions are in the best interest of the Fund as a whole, we will post additional information on the Funds website and keep shareholders informed.
On November 26, 2008, the Fund announced that it was not permitted to pay the November monthly
dividend on December 9, 2008, because the Funds asset coverage was less than 200% for its ARPS. The Fund also indicated that it would be unable to resume the declaration and payment of dividends until the asset coverage requirements were
met. During December, the Fund issued notices to redeem 920 shares of ARPS, allowing the Fund to resume the declaration and payment of monthly dividends. The Fund declared a dividend in the amount of $0.13 on December 11, 2008, consisting of
$0.075 in lieu of the cancelled November dividend and $0.055 for the December dividend.
Since January 2009, the Fund has paid a monthly dividend of $0.055. The current Board of Directors has authorized the Fund to pay a monthly dividend of $0.055 subject to the Funds compliance with its asset coverage requirements. It is
expected that the Fund would redeem additional shares of ARPS to the extent necessary for the Fund to maintain an asset coverage of at least 200% for the ARPS after payment of all dividends.
In the event that the Fund does not meet its asset coverage requirements and is not able to declare or
pay a dividend, shareholders will be notified. The Fund has posted a Q&A on the Funds website at www.phf-hy.com, which is intended to provide shareholders with additional information concerning asset coverage requirements and the impact
that such requirements have on the ability to declare and pay dividends.
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
(Unaudited)
Fund Strategy
We are continuing the Funds dual strategy of increasing positions that we expect will have lower credit volatility, such as senior secured loans
(18.12% of the Fund) and investment-grade securities (BBB- or higher), which accounted for 2.33% of the Fund, while selectively investing in total return opportunities. The investment team continued to cull the Fund of issues with poor structure and
sell credits that we believe are overvalued or that have unfavorable risk/reward characteristics.
Given the continued wide spreads in the credit markets, we have continued searching for oversold, total-return investments. While we think it remains too early in the cycle for a systematic increase in risk, we continue to selectively add
incremental total-return investments to the Portfolio as our research discovers such opportunities.
As always, we appreciate your interest in the Fund and look forward to your continued support.
Sincerely,
George C.W. Gatch
President
April 30, 2009
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 investors 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.
JPMorgan 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., JPMorgan Investment Advisors, Inc., Security Capital Research & Management Incorporated and J.P. Morgan Alternative
Asset Management, Inc.
Securities rated below investment grade are called high-yield bonds, non-investment grade bonds, below investment-grade bonds, or junk bonds, and are considered to be speculative.
They generally are rated in the fifth or lower rating categories of Standard & Poors and Moodys Investors Service. Although these securities tend to provide higher yields than higher rated securities, there is a greater risk
that the Funds 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 Funds 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 Funds Form N-Qs are available, without charge, on the SECs website at www.sec.gov. The
Funds Form N-Qs may be reviewed and copied at the SECs 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 Funds 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 Funds website.
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
|
|
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*
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Sothebys, 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
|
|
|
|
|
|
|
|
|
|
|
|
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*
|
|
|
|
|
|
|
|
|
|
|
|
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., Secd 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
|
|
Toms 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., Secd 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
|
|
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*
|
|
|
|
|
|
|
|
|
|
|
|
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, Secd Nt, VAR, 4,823.931%, 04/01/11
1,4
|
|
|
1,000
|
|
|
95,000
|
|
0.2
|
|
Dynegy Holdings, Inc., Sr Unsecd 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., Secd 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
|
|
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*
|
|
|
|
|
|
|
|
|
|
|
|
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., Secd 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
|
|
7
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., Secd 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
|
|
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
|
|
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*
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Harrahs 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
|
|
10
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
|
|
|
|
|
|
|
|
|
|
|
|
11
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VAR
|
|
Variable Rate Security. The interest rate shown is the rate in effect as of March 31, 2009.
|
12
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.
|
1
|
|
Non-income producing security.
|
2
|
|
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.
|
3
|
|
Fair valued security. These securities amounted to $3,042,123 and 5.4% of net assets applicable to common stockholders.
|
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.
|
13
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 Funds 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 Funds 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 Funds 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).
14
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