- 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: September 30, 2010

ITEM 1.

SCHEDULE OF INVESTMENTS.

Pacholder High Yield Fund, Inc.

Schedule of Portfolio Investments as of September 30, 2010

(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. Those businesses include, but are not limited to, J.P. Morgan Investment Management Inc., Security Capital Research & Management Incorporated and J.P. Morgan Alternative Asset Management, Inc.

JPMorgan Distribution Services, Inc.

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

Schedule of Portfolio Investments

As of September 30, 2010 (Unaudited)


Description	Par (000)			Value		Percent of Net Assets*

CORPORATE BONDS — 103.5%
CONSUMER DISCRETIONARY — 30.7%
AUTO COMPONENTS — 1.1%
DPH Holdings Corp., 7.125%, 05/01/29 ^1,4	$	725		$	18,125		0.0	% ¹²
Pinafore LLC/Pinafore, Inc., Private Placement, 9.000%, 10/01/18 ^2,6		375			393,750		0.4
UCI Holdco, Inc., Sr Nt, 9.250%, 12/15/13		535			519,429		0.5
United Components, Inc., Sr Nt, 9.375%, 06/15/13		250			254,375		0.2

					1,185,679		1.1
AUTOMOBILES — 2.4%
Ford Holdings LLC, 9.300%, 03/01/30		262			291,475		0.3
9.375%, 03/01/20 ¹⁰		150			162,188		0.1
Ford Motor Co., 7.750%, 06/15/43		750			720,000		0.7
8.900%, 01/15/32		125			136,875		0.1
Ford Motor Co., Nt, 9.980%, 02/15/47		125			140,000		0.1
Motors Liquidation Co., 0.000%, 03/15/36 ^1,4		55			9,487		0.0	¹²
5.250%, 03/06/32		25			197,528		0.2
6.250%, 07/15/33		15			118,856		0.1
7.250%, 04/15/41		—	¹¹		1,647		0.0	¹²
7.250%, 07/15/41		—	¹¹		705		0.0	¹²
7.250%, 02/15/52		7			55,929		0.0	¹²
7.375%, 05/15/48		10			73,966		0.1
7.375%, 10/01/51		—	¹¹		1,870		0.0	¹²
Motors Liquidation Co., Debentures, 6.750%, 05/01/28 ^1,4		50			15,500		0.0	¹²
8.100%, 06/15/24 ^1,4		1,725			547,688		0.5
8.375%, 07/15/33 ^1,4		425			143,437		0.2

					2,617,151		2.4
BROADCASTING & CABLE TV — 2.8%
Adelphia Communications Corp., Pfd, 6.000%, 02/15/06 ^1,4		125			—		0.0
Adelphia Communications Corp., Sr Nt, 8.125%, 07/15/03 ^1,4		750			10,357		0.0	¹²
9.375%, 11/15/09 ^1,4		560			7,734		0.0	¹²
Adelphia Recovery Trust, Contingent Value ¹		1,297			18,805		0.0	¹²
Cablevision Systems Corp., 8.000%, 04/15/20		95			102,244		0.1
CCO Holdings LLC/CCO Holdings Capital Corp., Private Placement, 7.250%, 10/30/17 ²		240			243,300		0.2
7.875%, 04/30/18 ²		90			93,375		0.1


Description	Par (000)		Value		Percent of Net Assets*

BROADCASTING & CABLE TV (continued)
Cequel Communications Holdings I LLC and Cequel Capital Corp., Private Placement, Sr Nt, 8.625%, 11/15/17 ²	$	260	$	274,300		0.3	%
Charter Communications Operating LLC/Charter Communications Operating Capital, Private Placement, Nt, 10.875%, 09/15/14 ²		150		169,875		0.2
Mediacom LLC/Mediacom Capital Corp., 9.125%, 08/15/19		156		161,460		0.2
Sirius XM Radio, Inc., Private Placement, 8.750%, 04/01/15 ^2,6		180		191,250		0.2
9.750%, 09/01/15 ²		150		165,187		0.1
Telesat Canada/Telesat LLC, (Canada), 11.000%, 11/01/15		136		153,680		0.1
12.500%, 11/01/17 ¹⁰		150		177,000		0.2
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, Private Placement, Sr Sec’d Nt, (Germany), 8.125%, 12/01/17 ²		250		260,000		0.2
Virgin Media Finance plc, (United Kingdom), 8.375%, 10/15/19		225		246,938		0.2
Virgin Media Finance plc, Sr Nt, (United Kingdom), 9.125%, 08/15/16		450		481,500		0.4
XM Satellite Radio, Inc., Private Placement, Sr Nt, 13.000%, 08/01/13 ²		330		379,500		0.3

				3,136,505		2.8
DISTRIBUTORS — 0.3%
McJunkin Red Man Corp., Private Placement, Sr Nt, 9.500%, 12/15/16 ²		355		312,400		0.3

DIVERSIFIED CONSUMER SERVICES — 1.4%
Knowledge Learning Corp., Inc., Private Placement, Sr Sub Nt, 7.750%, 02/01/15 ²		700		693,000		0.6
Mac-Gray Corp., Sr Nt, 7.625%, 08/15/15 ¹⁰		650		632,125		0.6
Sotheby’s, 7.750%, 06/15/15		250		260,625		0.2

				1,585,750		1.4
GAMING — 5.1%
Chukchansi Economic Development Authority, Private Placement, 8.000%, 11/15/13 ²		766		448,110		0.4
Harrah’s Operating Co., Inc., 11.250%, 06/01/17		250		273,750		0.3

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

Schedule of Portfolio Investments (continued)

As of September 30, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

GAMING (continued)
Isle of Capri Casinos, Inc., Sr Nt, 7.000%, 03/01/14 ⁶	$	400	$	362,000		0.3	%
Mandalay Resort Group, Sr Nt, 7.625%, 07/15/13		200		172,000		0.2
Marina District Finance Co., Inc., Private Placement, 9.500%, 10/15/15 ^2,6		100		97,000		0.1
9.875%, 08/15/18 ^2,6		45		43,425		0.0	¹²
Mashantucket Western Pequot Tribe, Private Placement, 5.912%, 09/01/21 ^1,2,4		475		314,037		0.3
8.500%, 11/15/15 ^1,2,4		820		123,000		0.1
MCE Finance Ltd., Private Placement, (Cayman Islands), 10.250%, 05/15/18 ²		225		250,313		0.2
MGM Resorts International, Co Guar, 5.875%, 02/27/14 ⁶		30		25,650		0.0	¹²
6.625%, 07/15/15 ⁶		231		193,462		0.2
7.500%, 06/01/16 ⁶		140		118,300		0.1
7.625%, 01/15/17 ⁶		201		169,343		0.2
13.000%, 11/15/13		175		205,625		0.2
MGM Resorts International, Private Placement, 9.000%, 03/15/20 ²		125		131,562		0.1
Midwest Gaming Borrower LLC/Midwest Finance Corp., Private Placement, 11.625%, 04/15/16 ²		100		101,750		0.1
Peninsula Gaming LLC, 8.375%, 08/15/15		350		364,000		0.3
Pinnacle Entertainment, Inc., 8.750%, 05/15/20		100		98,500		0.1
San Pasqual Casino, Private Placement, 8.000%, 09/15/13 ²		500		490,625		0.4
Seminole Hard Rock Entertainment, Inc., Private Placement, VAR, 2.792%, 03/15/14 ²		500		438,750		0.4
Shingle Springs Tribal Gaming Authority, Private Placement, Sr Nt, 9.375%, 06/15/15 ²		1,000		745,000		0.7
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., Private Placement, 7.750%, 08/15/20 ²		375		395,625		0.4

				5,561,827		5.1
HOTELS, RESTAURANTS & LEISURE — 1.6%
CKE Restaurants, Inc., Private Placement, 11.375%, 07/15/18 ²		350		358,750		0.3


Description	Par (000)		Value		Percent of Net Assets*

HOTELS, RESTAURANTS & LEISURE (continued)
Games Merger Corp., Private Placement, Sr Nt, 11.000%, 06/01/18 ²	$	30	$	32,400		0.0	% ¹²
Landry’s Holdings, Inc., Private Placement, 11.500%, 06/01/14 ²		100		93,000		0.1
Landry’s Restaurants, Inc., Sr Nt, 11.625%, 12/01/15		200		211,000		0.2
Real Mex Restaurants, Inc., 14.000%, 01/01/13		200		204,000		0.2
Royal Caribbean Cruises Ltd., Sr Nt, (Liberia), 11.875%, 07/15/15		231		280,087		0.3
Speedway Motorsports, Inc., Sr Nt, 8.750%, 06/01/16		300		324,000		0.3
Universal City Development Partners Ltd./UCDP Finance, Inc., 8.875%, 11/15/15		35		36,094		0.0	¹²
Universal City Development Partners Ltd./UCDP Finance, Inc., 10.875%, 11/15/16		250		270,625		0.2

				1,809,956		1.6
HOUSEHOLD DURABLES — 1.4%
K Hovnanian Enterprises, Inc., Sr Nt, 10.625%, 10/15/16		475		475,594		0.5
Lennar Corp., Sr Nt, 6.950%, 06/01/18		235		217,962		0.2
Meritage Homes Corp., Sr Nt, 6.250%, 03/15/15		75		73,688		0.1
7.150%, 04/15/20		260		245,700		0.2
Standard Pacific Corp., 7.000%, 08/15/15		130		124,475		0.1
Standard Pacific Corp., Sr Nt, 6.250%, 04/01/14		139		133,961		0.1
10.750%, 09/15/16		210		228,900		0.2

				1,500,280		1.4
LEISURE EQUIPMENT & PRODUCTS — 1.2%
Da-Lite Screen Co., Inc., Sr Nt, 12.500%, 04/01/15		375		382,500		0.3
Eastman Kodak Co., Private Placement, 9.750%, 03/01/18 ²		740		717,800		0.7
FGI Holding Co., Inc., Private Placement, Sr Nt, PIK, 11.250%, 10/01/15 ²		225		215,438		0.2

				1,315,738		1.2
MEDIA — 7.7%
Barrington Broadcasting Group LLC and Barrington Broadcasting Capital Corp., Sr Sub Nt, 10.500%, 08/15/14		700		644,875		0.6

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

Schedule of Portfolio Investments (continued)

As of September 30, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

MEDIA (continued)
Block Communications, Inc., Private Placement, Sr Nt, 8.250%, 12/15/15 ^2,10	$	800	$	801,000		0.7	%
Clear Channel Worldwide Holdings, Inc., Sr Nt,
9.250%, 12/15/17		125		132,500		0.1
9.250%, 12/15/17		500		533,750		0.5
CSC Holdings LLC, 7.625%, 07/15/18		50		53,875		0.1
CSC Holdings LLC, Sr Nt, 7.875%, 02/15/18		96		104,760		0.1
DigitalGlobe, Inc., Sr Nt, 10.500%, 05/01/14		250		278,125		0.3
Entravision Communications Corp., Private Placement, 8.750%, 08/01/17 ²		100		102,000		0.1
Fisher Communications, Inc., Sr Nt, 8.625%, 09/15/14		500		495,000		0.5
Gannett Co., Inc., Private Placement,
6.375%, 09/01/15 ²		50		49,437		0.0	¹²
7.125%, 09/01/18 ²		75		73,875		0.1
9.375%, 11/15/17 ²		110		120,175		0.1
Gray Television, Inc., 10.500%, 06/29/15 ⁶		50		49,938		0.0	¹²
Intelsat Intermediate Holding Co. S.A., (Luxembourg), 9.500%, 02/01/15 ⁷		200		207,000		0.2
Intelsat Jackson Holdings S.A., Private Placement, (Luxembourg), 7.250%, 10/15/20 ²		150		150,750		0.1
Intelsat Jackson Holdings S.A., Private Placement, Sr Nt, (Luxembourg), 8.500%, 11/01/19 ²		150		162,750		0.2
Intelsat Luxembourg S.A., (Luxembourg),
11.250%, 02/04/17		1,175		1,258,719		1.1
11.500%, 02/04/17		297		321,610		0.3
Intelsat Subsidiary Holding Co. S.A., (Bermuda), 8.875%, 01/15/15 ¹⁰		140		144,900		0.1
Intelsat Subsidiary Holding Co. S.A., Private Placement, (Bermuda), 8.875%, 01/15/15 ²		360		370,800		0.3
Lamar Media Corp., Sr Sub Nt, 6.625%, 08/15/15		125		126,562		0.1
Media General, Inc., 11.750%, 02/15/17 ⁶		400		433,000		0.4
Nexstar Broadcasting, Inc./Mission Broadcasting Inc., Private Placement, 8.875%, 04/15/17 ²		100		104,250		0.1


Description	Par (000)		Value		Percent of Net Assets*

MEDIA (continued)
Nexstar Finance Holdings LLC/Nexstar Finance Holdings, Inc., Sr Disc Nt, 11.375%, 04/01/13 ⁷	$	479	$	477,588		0.4	%
Nielsen Finance LLC/Nielsen Finance Co., 0.000%, 08/01/16 ⁷		94		94,118		0.1
Nielsen Finance LLC/Nielsen Finance Co., Private Placement, 7.750%, 10/15/18 ²		225		223,351		0.2
ProQuest LLC/ProQuest Notes Co., Private Placement, 9.000%, 10/15/18 ²		125		126,875		0.1
Radio One, Inc., Sr Sub Nt, 6.375%, 02/15/13 ^1,4		500		420,625		0.4
Sinclair Television Group, Inc., Private Placement, 8.375%, 10/15/18 ²		100		100,750		0.1
WMG Acquisition Corp., Nt, 9.500%, 06/15/16		61		65,270		0.1
WMG Holdings Corp., Nt, 9.500%, 12/15/14 ^6,7		.250		239,375		0.2

				8,467,603		7.7
MULTILINE RETAIL — 0.3%
HSN, Inc., 11.250%, 08/01/16		323		368,220		0.3

SPECIALTY RETAIL — 4.0%
Burlington Coat Factory Investment Holdings, Inc., 14.500%, 10/15/14 ⁷		132		140,910		0.1
Collective Brands, Inc., 8.250%, 08/01/13		445		451,675		0.4
General Nutrition Centers, Inc., 5.750%, 03/15/14		461		456,966		0.4
Michael’s Stores, Inc., Sr Nt, 0.000%, 11/01/16 ⁷		1,400		1,347,500		1.2
NBC Acquisition Corp., 11.000%, 03/15/13 ⁷		280		251,300		0.2
NBTY, Inc., Private Placement, 9.000%, 10/01/18 ²		100		105,000		0.1
Nebraska Book Co., Inc.,
8.625%, 03/15/12 ¹⁰		365		348,575		0.3
10.000%, 12/01/11		345		349,312		0.4
PEP Boys-Manny Moe & Jack, Sr Nt, 7.500%, 12/15/14		500		500,000		0.5
Toys R Us Property Co. LLC, Private Placement, Sr Sec’d Nt, 8.500%, 12/01/17 ²		285		301,388		0.3
Toys R Us, Inc., 7.875%, 04/15/13 ⁶		118		123,015		0.1

				4,375,641		4.0

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

Schedule of Portfolio Investments (continued)

As of September 30, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

TEXTILES, APPAREL & LUXURY GOODS — 1.4%
Broder Brothers Co., Private Placement, 12.000%, 10/15/13 ^2,3,9	$	429	$	373,108		0.3
Hanesbrands, Inc., Sr Nt, VAR, 4.121%, 12/15/14		500		481,250		0.4
Quiksilver, Inc., 6.875%, 04/15/15		748		708,730		0.7

				1,563,088		1.4

Total Consumer Discretionary				33,799,838		30.7

CONSUMER STAPLES — 5.1%
BEVERAGES — 0.3%
Constellation Brands, Inc., Sr Nt, 8.375%, 12/15/14		315		347,681		0.3

FOOD & STAPLES RETAILING — 1.6%
Ingles Markets, Inc., 8.875%, 05/15/17		190		204,725		0.2
Rite Aid Corp., 9.500%, 06/15/17 ⁶		1,000		840,000		0.8
Rite Aid Corp., Debentures, 7.500%, 03/01/17		600		552,750		0.5
Tops Markets LLC, Private Placement, 10.125%, 10/15/15 ²		115		123,482		0.1

				1,720,957		1.6
FOOD PRODUCTS — 1.9%
Chiquita Brands International, Inc., Sr Nt, 8.875%, 12/01/15 ⁶		299		307,970		0.3
Eurofresh, Inc., 15.000%, 11/18/16 ^3,9		392		392,024		0.4
JBS USA LLC/JBS USA Finance, Inc., 11.625%, 05/01/14		325		375,375		0.4
Michael Foods, Inc., Private Placement, Sr Nt, 9.750%, 07/15/18 ²		350		374,500		0.3
Smithfield Foods, Inc., Nt, 7.750%, 05/15/13 ¹⁰		575		594,406		0.5
Tom’s Foods, Inc., Sr Nt, 10.500%, 11/01/04 ^1,3,4,9		863		8,635		0.0	¹²

				2,052,910		1.9
HOUSEHOLD PRODUCTS — 0.6%
Spectrum Brands Holdings, Inc., 12.000%, 08/28/19		596		663,345		0.6

PERSONAL PRODUCTS — 0.3%
Visant Corp., Private Placement, 10.000%, 10/01/17 ²		305		318,725		0.3

TOBACCO — 0.4%
Alliance One International, Inc., Nt, 10.000%, 07/15/16		440		476,300		0.4

Total Consumer Staples				5,579,918		5.1


Description	Par (000)		Value		Percent of Net Assets*

ENERGY — 10.3%
ENERGY EQUIPMENT & SERVICES — 2.0%
American Petroleum Tankers LLC/AP Tankers Co., Private Placement, 10.250%, 05/01/15 ²	$	270	$	276,075		0.2
Global Geophysical Services, Inc., Private Placement, 10.500%, 05/01/17 ²		85		86,487		0.1
Helix Energy Solutions Group, Inc., Private Placement, 9.500%, 01/15/16 ²		500		506,250		0.5
Key Energy Services, Inc., Sr Nt, 8.375%, 12/01/14		338		356,590		0.3
Parker Drilling Co., Private Placement, 9.125%, 04/01/18 ²		250		253,750		0.2
PHI, Inc., Private Placement, 8.625%, 10/15/18 ²		310		304,575		0.3
Pride International, Inc., 6.875%, 08/15/20		65		70,769		0.1
Seadrill Ltd., (Bermuda), 6.500%, 10/05/15		325		325,000		0.3

				2,179,496		2.0
OIL, GAS & CONSUMABLE FUELS — 8.3%
Alon Refining Krotz Springs, Inc., 13.500%, 10/15/14		260		253,175		0.2
Antero Resources Finance Corp., Nt, 9.375%, 12/01/17		250		265,625		0.2
Arch Coal, Inc., 7.250%, 10/01/20		80		84,500		0.1
Bill Barrett Corp., 9.875%, 07/15/16		150		163,875		0.1
Brigham Exploration Co., Private Placement, 8.750%, 10/01/18 ²		125		128,750		0.1
Citgo Petroleum Corp., Private Placement, Sr Nt, 11.500%, 07/01/17 ²		300		332,250		0.3
Comstock Resources, Inc., Sr Nt, 8.375%, 10/15/17		250		257,812		0.2
Consol Energy, Inc., Private Placement, 8.250%, 04/01/20 ²		125		136,563		0.1
Consol Energy, Inc., Private Placement, Sr Nt, 8.000%, 04/01/17 ²		170		184,025		0.2
Continental Resources, Inc., Private Placement, 7.125%, 04/01/21 ²		75		78,000		0.1
Crosstex Energy LP/Crosstex Energy Finance Corp., 8.875%, 02/15/18		120		125,700		0.1
Denbury Resources, Inc., 8.250%, 02/15/20		40		43,650		0.0	¹²
El Paso Performance-Linked Trust, Private Placement, Sr Nt, 7.750%, 07/15/11 ^2,10		500		517,640		0.5

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

Schedule of Portfolio Investments (continued)

As of September 30, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

OIL, GAS & CONSUMABLE FUELS (continued)
El Paso Pipeline Partners Operating Co., LLC, 6.500%, 04/01/20	$	85	$	91,759		0.1	%
Energy Transfer Equity LP, 7.500%, 10/15/20		100		105,250		0.1
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp., Sr Unsecd Nt, 8.625%, 06/15/20		325		348,562		0.3
Forbes Energy Services LLC/Forbes Energy Capital, Inc., 11.000%, 02/15/15		350		318,500		0.3
Foresight Energy LLC/Foresight Energy Corp., Private Placement, 9.625%, 08/15/17 ²		180		185,400		0.2
Forest Oil Corp., Nt, 7.250%, 06/15/19		394		402,865		0.4
Gibson Energy ULC/GEP Midstream Finance Corp., Sr Nt, (Canada), 10.000%, 01/15/18		180		177,300		0.2
Gibson Energy ULC/GEP Midstream Finance Corp., Sr Nt, (Canada), 11.750%, 05/27/14		200		222,000		0.2
Harvest Operations Corp., Private Placement, Sr Nt, (Canada), 6.875%, 10/01/17 ²		70		71,575		0.1
Holly Corp., 9.875%, 06/15/17		70		74,113		0.1
Holly Energy Partners LP/Holly Energy Finance Corp., Private Placement, 8.250%, 03/15/18 ²		130		135,525		0.1
Inergy LP/Inergy Finance Corp., Private Placement, 7.000%, 10/01/18 ²		250		256,250		0.2
NFR Energy LLC/NFR Energy Finance Corp., Private Placement, 9.750%, 02/15/17 ²		360		360,000		0.3
Patriot Coal Corp., 8.250%, 04/30/18		125		125,000		0.1
Penn Virginia Resource Partners LP/Penn Virginia Resource Finance Corp., Sr Nt, 8.250%, 04/15/18		160		165,800		0.2
Petroleum Development Corp., Sr Nt, 12.000%, 02/15/18		48		53,280		0.0	¹²
Pioneer Drilling Co., Private Placement, 9.875%, 03/15/18 ²		120		122,700		0.1
QEP Resources, Inc., 6.875%, 03/01/21		140		151,550		0.1
Range Resources Corp.,
6.750%, 08/01/20		20		20,800		0.0	¹²
7.250%, 05/01/18		25		26,250		0.0	¹²


Description	Par (000)		Value		Percent of Net Assets*

OIL, GAS & CONSUMABLE FUELS (continued)
Range Resources Corp., Sr Sub Nt, 7.500%, 05/15/16	$	267	$	279,015		0.3	%
Suburban Propane Partners LP/Suburban Energy Finance Corp., 7.375%, 03/15/20		65		69,063		0.1
Swift Energy Co., 8.875%, 01/15/20		100		104,125		0.1
Swift Energy Co., Sr Nt, 7.125%, 06/01/17 ¹⁰		1,260		1,247,400		1.1
Targa Resources Partners LP/Targa Resources Partners Finance Corp., 8.250%, 07/01/16		280		296,100		0.3
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Private Placement, 7.875%, 10/15/18 ²		130		135,525		0.1
W&T Offshore, Inc., Private Placement, Sr Nt, 8.250%, 06/15/14 ²		650		624,000		0.6
Western Refining, Inc., Private Placement, VAR,
10.750%, 06/15/14 ²		225		213,750		0.2
11.250%, 06/15/17 ²		225		211,500		0.2

				9,166,522		8.3

Total Energy				11,346,018		10.3

FINANCIALS — 11.8%
COMMERCIAL BANKS — 2.7%
Bank of America Corp., 8.125%, 05/15/18 ¹⁴		160		165,046		0.2
BankAmerica Capital II, Nt, 8.000%, 12/15/26		30		30,900		0.0	¹²
BankAmerica Institutional Capital B, Private Placement, 7.700%, 12/31/26 ²		250		255,937		0.2
Barclays Bank plc, Private Placement, (United Kingdom), 7.434%, 12/15/17 ^2,14		600		612,000		0.6
Capital One Capital V, 10.250%, 08/15/39 ¹⁰		560		606,200		0.6
Credit Agricole S.A., Private Placement, (France), 6.637%, 05/31/17 ^2,14		850		773,500		0.7
Wachovia Capital Trust III, 5.800%, 03/15/11 ¹⁴		545		478,238		0.4

				2,921,821		2.7
CONSUMER FINANCE — 1.7%
Ally Financial, Inc., 8.000%, 11/01/31		842		903,045		0.8

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

Schedule of Portfolio Investments (continued)

As of September 30, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

CONSUMER FINANCE (continued)
American General Finance Corp., 6.900%, 12/15/17	$	200	$	167,000		0.2	%
Ford Motor Credit Co. LLC, Nt, 8.000%, 12/15/16 ¹⁰		700		791,260		0.7

				1,861,305		1.7
DIVERSIFIED FINANCIAL SERVICES — 2.6%
ACE Cash Express, Inc., Private Placement, Sr Nt, 10.250%, 10/01/14 ^2,3,9		1,000		860,000		0.8
Aircastle Ltd., Private Placement, Sr Nt, (Bermuda), 9.750%, 08/01/18 ²		75		76,594		0.1
CIT Group, Inc., Nt, 7.000%, 05/01/15		750		744,375		0.7
CNG Holdings, Inc., Private Placement, 12.250%, 02/15/15 ²		140		148,400		0.1
ILFC E-Capital Trust I, Private Placement, VAR, 5.900%, 12/21/65 ²		200		131,000		0.1
ILFC E-Capital Trust II, Private Placement, VAR, 6.250%, 12/21/65 ²		270		182,250		0.2
International Lease Finance Corp., 8.875%, 09/01/17		300		324,000		0.3
SquareTwo Financial Corp., Private Placement, 11.625%, 04/01/17 ²		425		378,250		0.3

				2,844,869		2.6
INSURANCE — 4.6%
American International Group, Inc., VAR, 8.175%, 05/15/58		254		254,000		0.2
Crum and Forster Holdings Corp., 7.750%, 05/01/17 ¹⁰		600		624,750		0.6
Genworth Financial, Inc., 6.150%, 11/15/66		100		75,875		0.1
HUB International Holdings, Inc., Private Placement, 9.000%, 12/15/14 ²		250		246,875		0.2
10.250%, 06/15/15 ^2,10		550		533,500		0.5
Liberty Mutual Group, Inc., Private Placement, 7.500%, 08/15/36 ²		250		254,279		0.2
VAR, 10.750%, 06/15/58 ^2,10		1,620		1,911,600		1.8
Nationwide Mutual Insurance Co., Private Placement, 8.250%, 12/01/31 ²		108		115,432		0.1
9.375%, 08/15/39 ²		175		206,652		0.2
USI Holdings Corp., Private Placement, Sr Sub Nt, 9.750%, 05/15/15 ^{2, 10}		842		816,740		0.7

				5,039,703		4.6


Description	Par (000)		Value		Percent of Net Assets*

REAL ESTATE INVESTMENT TRUSTS (REITS) — 0.2%
DuPont Fabros Technology LP, Nt, 8.500%, 12/15/17	$	105	$	112,612		0.1	%
First Industrial LP, Sr Nt, 6.420%, 06/01/14		180		168,795		0.1

				281,407		0.2

Total Financials				12,949,105		11.8

HEALTH CARE — 4.8%
HEALTH CARE EQUIPMENT & SUPPLIES — 0.0% ¹²
DJO Finance LLC / DJO Finance Corp., Sr Nt, 10.875%, 11/15/14		50		54,375		0.0	¹²

HEALTH CARE PROVIDERS & SERVICES — 2.7%
Capella Healthcare, Inc., Private Placement, 9.250%, 07/01/17 ²		165		176,550		0.2
HCA, Inc., 5.750%, 03/15/14 ¹⁰		195		192,319		0.2
HCA, Inc., Sec’d Nt, 9.250%, 11/15/16 ¹⁰		500		541,250		0.5
Multiplan, Inc., Private Placement, Nt, 9.875%, 09/01/18 ²		450		470,250		0.4
OnCure Holdings, Inc., Private Placement, 11.750%, 05/15/17 ²		775		713,000		0.6
Radiation Therapy Services, Inc., Private Placement, Nt, 9.875%, 04/15/17 ²		225		222,187		0.2
Team Finance LLC / Health Finance Corp., 11.250%, 12/01/13		105		108,675		0.1
Tenet Healthcare Corp., 8.875%, 07/01/19 ¹⁰		500		551,875		0.5

				2,976,106		2.7
PHARMACEUTICALS — 2.1%
Catalent Pharma Solutions, Inc., Nt, 10.250%, 04/15/15		402		406,376		0.4
Celtic Pharma Phinco B.V., (Bermuda), PIK, 17.000%, 06/15/12 ^3,9		1,719		859,254		0.8
Elan Finance plc/Elan Finance Corp., Private Placement, (Ireland), 8.750%, 10/15/16 ²		500		500,000		0.4
8.750%, 10/15/16 ²		500		505,000		0.5

				2,270,630		2.1

Total Health Care				5,301,111		4.8

INDUSTRIALS — 13.3%
AEROSPACE & DEFENSE — 0.4%
Bombardier, Inc., Private Placement, (Canada), 7.500%, 03/15/18 ²		50		53,750		0.0	¹²
7.750%, 03/15/20 ²		50		54,000		0.1

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

Schedule of Portfolio Investments (continued)

As of September 30, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

AEROSPACE & DEFENSE (continued)
Colt Defense LLC/Colt Finance Corp., Private Placement, 8.750%, 11/15/17 ²	$	22	$	16,170		0.0	% ¹²
Kratos Defense & Security Solutions, Inc., 10.000%, 06/01/17		210		222,600		0.2
Triumph Group, Inc., 8.625%, 07/15/18		80		86,000		0.1

				432,520		0.4
AIRLINES — 2.4%
American Airlines Pass Through Trust 2001-01, 7.377%, 05/23/19		636		582,060		0.5
Continental Airlines 2005-ERJ1 Pass Through Trust, 9.798%, 04/01/21 ¹⁰		1,361		1,388,395		1.3
Delta Air Lines, Inc., 8.300%, 12/15/29 ^1,4		1,145		20,037		0.0	¹²
10.125%, 05/15/11 ^1,4		500		8,750		0.0	¹²
UAL 2007-1 Pass Through Trust, Private Placement, VAR, 3.003%, 07/02/14 ²		107		87,947		0.1
7.336%, 07/02/19 ²		84		77,097		0.0	¹²
UAL 2009-2B Pass Through Trust, Private Placement, 12.000%, 01/15/16 ²		485		525,979		0.5

				2,690,265		2.4
COMMERCIAL SERVICES & SUPPLIES — 2.6%
Cenveo Corp., Nt, 8.875%, 02/01/18		200		197,750		0.2
Cenveo Corp., Private Placement, 10.500%, 08/15/16 ²		1,000		1,022,500		0.9
Garda World Security Corp., Private Placement, (Canada), 9.750%, 03/15/17 ²		180		191,700		0.2
Harland Clarke Holdings Corp., VAR, 6.000%, 05/15/15 ¹⁰		350		294,000		0.3
9.500%, 05/15/15		500		473,750		0.4
Iron Mountain, Inc., 8.375%, 08/15/21		250		270,312		0.2
Liberty Tire Recycling, Private Placement, Nt, 11.000%, 10/01/16 ²		275		280,500		0.3
Quebecor World Capital Escrow Corp., (Canada), 6.125%, 11/15/13 ^1,3,4		1,415		84,900		0.1
6.500%, 08/01/27 ^1,3,4		810		48,600		0.0	¹²
9.750%, 01/15/15 ^1,3,4		585		35,100		0.0	¹²

				2,899,112		2.6
CONSTRUCTION & ENGINEERING — 1.6%
New Enterprise Stone & Lime Co., Private Placement, Nt, 11.000%, 09/01/18 ²		750		701,250		0.6
RSC Equipment Rental, Inc./RSC Holdings III LLC, Sr Nt, 9.500%, 12/01/14 ¹⁰		893		925,371		0.9


Description	Par (000)		Value		Percent of Net Assets*

CONSTRUCTION & ENGINEERING (continued)
United Rentals North America, Inc., 10.875%, 06/15/16	$	80	$	90,300		0.1	%

				1,716,921		1.6
ELECTRICAL EQUIPMENT — 0.4%
Belden, Inc., Private Placement, Sr Nt, 9.250%, 06/15/19 ²		125		135,000		0.1
General Cable Corp., VAR, 2.908%, 04/01/15		250		231,875		0.2
International Wire Group, Inc., Private Placement, 9.750%, 04/15/15 ²		100		102,125		0.1

				469,000		0.4
ELECTRONIC MANUFACTURING SERVICES — 0.4%
Kemet Corp., Private Placement, 10.500%, 05/01/18 ²		375		392,344		0.4

INDUSTRIAL CONGLOMERATES — 1.1%
JB Poindexter & Co., Inc., Co. Guar, 8.750%, 03/15/14 ¹⁰		1,184		1,157,360		1.1

MACHINERY — 0.1%
Titan International, Inc., Private Placement, 7.875%, 10/01/17 ²		125		126,250		0.1

MARINE — 1.6%
Commercial Barge Line Co., Sr Nt, 12.500%, 07/15/17 ⁶		350		385,000		0.3
General Maritime Corp., Sr Nt, 12.000%, 11/15/17		264		278,520		0.3
Navios Maritime Holdings, Inc./Navios Maritime Finance U.S., Inc., Private Placement, 8.875%, 11/01/17 ^2,6		440		464,200		0.4
Sevan Marine ASA, Private Placement, (Norway), 12.000%, 08/10/15 ²		200		209,000		0.2
Ultrapetrol Bahamas Ltd., 1st Mtg, (Bahamas), 9.000%, 11/24/14		385		385,963		0.4

				1,722,683		1.6
ROAD & RAIL — 2.7%
Avis Budget Car Rental LLC / Avis Budget Finance, Inc., Nt, 7.750%, 05/15/16		200		196,500		0.2
Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 9.625%, 03/15/18		290		306,675		0.3
Hertz Corp. (The), Sr Nt, 10.500%, 01/01/16		295		313,437		0.3
Kansas City Southern Railway, Sr Nt, 8.000%, 06/01/15		250		269,063		0.2

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

Schedule of Portfolio Investments (continued)

As of September 30, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

ROAD & RAIL (continued)
Quality Distribution LLC/QD Capital Corp., 10.000%, 06/01/13 ^3,9	$	850	$	850,000		0.8	%
PIK, 11.750%, 11/01/13 ^3,9		767		724,346		0.6
RailAmerica, Inc., 9.250%, 07/01/17		300		328,875		0.3

				2,988,896		2.7

Total Industrials				14,595,351		13.3

INFORMATION TECHNOLOGY — 4.8%
COMMUNICATIONS EQUIPMENT — 0.4%
Avaya, Inc., Sr Nt, 9.750%, 11/01/15		500		471,250		0.4

COMPUTERS & PERIPHERALS — 0.4%
Seagate HDD Cayman, Private Placement, Sr Nt, (Cayman Islands), 6.875%, 05/01/20 ²		170		166,175		0.1
Stratus Technologies, Inc., Private Placement, Sr Sec’d Nt, 12.000%, 03/29/15 ²		380		323,475		0.3

				489,650		0.4
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.9%
Intcomex, Inc., Private Placement, 13.250%, 12/15/14 ²		75		79,125		0.1
Sanmina-SCI Corp., Private Placement, Sr Nt, VAR, 3.042%, 06/15/14 ²		200		188,500		0.2
Smart Modular Technologies WWH, Inc., Sr Nt, (Cayman Islands), VAR, 6.033%, 04/01/12 ^3,9		423		421,046		0.4
Viasystems, Inc., Private Placement, 12.000%, 01/15/15 ²		225		245,531		0.2

				934,202		0.9
INTERNET SOFTWARE & SERVICES — 0.4%
Equinix, Inc., Sub Nt, 8.125%, 03/01/18		245		261,538		0.3
Terremark Worldwide, Inc., Sr Nt, 12.000%, 06/15/17		125		142,812		0.1

				404,350		0.4
IT SERVICES — 1.0%
Compucom Systems, Inc., Private Placement, 12.500%, 10/01/15 ²		225		241,875		0.2
First Data Corp., 9.875%, 09/24/15 ¹⁰		300		245,250		0.3
Interactive Data Corp., Private Placement, 10.250%, 08/01/18 ²		100		106,500		0.1
Sitel LLC/Sitel Finance Corp., Private Placement, Sr Nt, 11.500%, 04/01/18 ²		160		128,000		0.1


Description	Par (000)		Value		Percent of Net Assets*

IT SERVICES (continued)
Stream Global Services, Inc., Sr Nt, 11.250%, 10/01/14	$	100	$	98,500		0.1	%
Unisys Corp., Private Placement, 14.250%, 09/15/15 ²		201		239,190		0.2

				1,059,315		1.0
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.7%
Amkor Technology, Inc., Private Placement, 7.375%, 05/01/18 ²		170		172,125		0.2
Freescale Semiconductor, Inc., Private Placement, Nt, 9.250%, 04/15/18 ²		105		109,200		0.1
10.750%, 08/01/20 ^2,6		65		65,162		0.1
NXP B.V./NXP Funding LLC, Sr Nt, (Netherlands), 7.875%, 10/15/14 ¹⁰		1,015		1,050,525		0.9
NXP B.V./NXP Funding LLC, Sr Nt, VAR, (Netherlands), 3.276%, 10/15/13		400		378,000		0.3
NXP B.V./NXP Funding LLC, Private Placement, (Netherlands), 9.750%, 08/01/18 ²		100		106,500		0.1

				1,881,512		1.7

Total Information Technology				5,240,279		4.8

MATERIALS — 8.9%
CHEMICALS — 2.2%
CF Industries, Inc., 7.125%, 05/01/20		90		98,438		0.1
Chemtura Corp., Private Placement, 7.875%, 09/01/18 ²		150		156,750		0.1
LBI Escrow Corp., Private Placement, 8.000%, 11/01/17 ²		325		355,062		0.3
Lyondell Chemical Co., 11.000%, 05/01/18		967		1,069,342		1.0
PolyOne Corp., 7.375%, 09/15/20		280		288,750		0.3
Sterling Chemicals, Inc., 10.250%, 04/01/15		350		352,188		0.3
TPC Group LLC, Private Placement, 8.250%, 10/01/17 ²		75		76,875		0.1

				2,397,405		2.2
CONSTRUCTION MATERIALS — 0.2%
Texas Industries, Inc., Private Placement, 9.250%, 08/15/20 ²		200		207,500		0.2
U.S. Concrete, Inc., Private Placement Sec’d Nt, 9.500%, 08/31/15 ²		46		55,200		0.0	¹²

				262,700		0.2

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

Schedule of Portfolio Investments (continued)

As of September 30, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

CONTAINERS & PACKAGING — 3.0%
Ardagh Packaging Finance plc, Private Placement, Sr Sub Nt, (Ireland), 9.125%, 10/15/20 ²	$	200	$	206,750		0.2	%
Berry Plastics Corp., 9.500%, 05/15/18		595		559,300		0.5
Berry Plastics Corp., Co Guar, 8.250%, 11/15/15		165		169,950		0.2
8.875%, 09/15/14		150		145,125		0.1
Berry Plastics Corp., Sr Nt, 10.250%, 03/01/16 ⁶		37		34,410		0.0	¹²
Berry Plastics Holding Corp., Nt, 8.875%, 09/15/14		200		194,500		0.2
Constar International, Inc., Co Guar, 3.751%, 02/15/12 ¹⁰		950		812,250		0.7
Packaging Dynamics Finance Corp., Private Placement, Sr Sub Nt, 10.000%, 05/01/16 ²		424		400,680		0.4
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC / Reynolds Group Issuer Lu, Private Placement, Nt, 8.500%, 05/15/18 ²		400		391,000		0.3
Solo Cup Co., Sr Nt, 8.500%, 02/15/14 ¹⁰		100		86,000		0.1
Viskase Cos., Inc., Private Placement, Sr Nt, 9.875%, 01/15/18 ²		350		357,000		0.3

				3,356,965		3.0
METALS & MINING — 0.6%
Murray Energy Corp., Private Placement, 10.250%, 10/15/15 ²		225		233,438		0.2
Noranda Aluminum Acquisition Corp., Sr Nt, 5.373%, 05/15/15		31		26,079		0.0	¹²
Wolverine Tube, Inc., Sr Nt, 15.000%, 03/31/12 ^1,4		954		429,480		0.4

				688,997		0.6
PAPER & FOREST PRODUCTS — 2.9%
ABI Escrow Corp., Private Placement, 10.250%, 10/15/18 ²		480		488,400		0.5
Abitibi-Consolidated Co. of Canada, Private Placement, Sr Nt, (Canada), 13.750%, 04/01/11 ^1,2,4		212		242,144		0.2
Abitibi-Consolidated Co. of Canada, Sr Nt, (Canada), 6.000%, 06/20/13 ^1,4		1,331		169,703		0.1
7.750%, 06/15/11 ^1,4		479		61,073		0.1
8.375%, 04/01/15 ^1,4		2,485		316,837		0.3


Description	Par (000)		Value		Percent of Net Assets*

PAPER & FOREST PRODUCTS (continued)
Abitibi-Consolidated, Inc., Sr Nt, (Canada), 7.500%, 04/01/28 ^1,4	$	287	$	38,027		0.1	%
8.850%, 08/01/30 ^1,4		102		12,750		0.0	¹²
Appleton Papers, Inc., Private Placement, Sr Sec’d Nt, 10.500%, 06/15/15 ²		250		234,375		0.2
Bowater Canada Finance Corp., Nt, (Canada), 7.950%, 11/15/11 ^1,4		500		157,500		0.2
NewPage Corp., Sr Sec’d Nt, 11.375%, 12/31/14		1,500		1,357,500		1.2
Smurfit-Stone Container Corp., 8.375%, 07/01/12 ^1,3,4		448		16,144		0.0	¹²
Smurfit-Stone Container Corp., Sr Nt, 8.000%, 03/15/17 ^1,3,4		1,229		44,288		0.0	¹²

				3,138,741		2.9

Total Materials				9,844,808		8.9

TELECOMMUNICATION SERVICES — 7.5%
DIVERSIFIED TELECOMMUNICATION SERVICES — 3.9%
Cincinnati Bell, Inc., 8.750%, 03/15/18		120		117,000		0.1
Clearwire Communications LLC/Clearwire Finance, Inc., Private Placement, 12.000%, 12/01/15 ²		850		915,875		0.8
Frontier Communications Corp., Sr Nt, 7.875%, 04/15/15		115		124,200		0.1
8.250%, 05/01/14		50		54,938		0.1
8.250%, 04/15/17		115		125,781		0.1
8.500%, 04/15/20		115		126,931		0.1
8.750%, 04/15/22		110		121,000		0.1
Global Crossing Ltd., (Bermuda), 12.000%, 09/15/15		35		39,550		0.1
Level 3 Financing, Inc., 10.000%, 02/01/18		105		94,500		0.1
Level 3 Financing, Inc., Co. Guar, 9.250%, 11/01/14 ¹⁰		1,000		940,000		0.9
PAETEC Holding Corp., Sr Sec’d Nt, 8.875%, 06/30/17		200		209,000		0.2
Qwest Communications International, Inc., Private Placement, Sr Sec’d Nt, 7.125%, 04/01/18 ²		200		210,000		0.2
Qwest Corp., Sr Nt, 7.625%, 06/15/15 ¹⁰		515		587,100		0.5
Windstream Corp., 7.875%, 11/01/17		320		333,600		0.3
Windstream Corp., Private Placement, 8.125%, 09/01/18 ²		250		258,750		0.2

				4,258,225		3.9

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

Schedule of Portfolio Investments (continued)

As of September 30, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

WIRELESS TELECOMMUNICATION SERVICES — 3.6%
Cricket Communications, Inc., 7.750%, 05/15/16	$	180	$	191,025		0.2	%
9.375%, 11/01/14 ⁶		250		258,750		0.2
MetroPCS Wireless, Inc., 7.875%, 09/01/18		145		149,350		0.1
Nextel Communications, Inc., 7.375%, 08/01/15		1,025		1,030,125		0.9
NII Capital Corp., Sr Nt, 8.875%, 12/15/19		315		350,044		0.3
10.000%, 08/15/16		135		153,562		0.2
Sprint Nextel Corp., Nt, 6.000%, 12/01/16 ¹⁰		1,400		1,382,500		1.3
Wind Acquisition Finance S.A., Private Placement, (Luxembourg), 11.750%, 07/15/17 ²		200		224,125		0.2
Wind Acquisition Holdings Finance S.A., Private Placement, Sr Sec’d Nt, (Luxembourg), PIK, 12.250%, 07/15/17 ²		220		235,299		0.2

				3,974,780		3.6

Total Telecommunication Services				8,233,005		7.5

UTILITIES — 6.3%
ELECTRIC UTILITIES — 0.1%
Homer City Funding LLC, 8.137%, 10/01/19		109		101,719		0.1

INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 6.0%
Calpine Construction Finance Co. LP and CCFC Finance Corp., Private Placement, 8.000%, 06/01/16 ²		200		214,000		0.2
Calpine Corp., Private Placement, Sr Nt, 7.250%, 10/15/17 ²		354		360,195		0.3
Calpine Generating Co. LLC, Sec’d Nt, 0.000%, 04/01/11 ^1,4		1,000		87,500		0.1
Dynegy Holdings, Inc., Sr Unsecd Nt, 7.125%, 05/15/18		500		341,250		0.3
Dynegy Roseton/Danskammer Pass Through Trust, Sr Unsecd Nt, 7.670%, 11/08/16		1,000		927,500		0.9
Edison Mission Energy, 7.200%, 05/15/19		500		353,750		0.3


Description	Par (000)		Value		Percent of Net Assets*

INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (continued)
Edison Mission Energy, Sr Nt, 7.750%, 06/15/16	$	1,000	$	782,500		0.7	%
GenOn Escrow Corp., Private Placement, 9.875%, 10/15/20 ²		290		276,950		0.3
Midwest Generation LLC, 8.560%, 01/02/16		243		240,232		0.2
Mirant Americas Generation LLC, Sr Nt, 8.500%, 10/01/21		500		481,250		0.4
North American Energy Alliance LLC/North American Energy Alliance Finance Corp., Private Placement, 10.875%, 06/01/16 ²		125		136,562		0.1
NRG Energy, Inc., Sr Nt, 7.250%, 02/01/14 ⁶		250		256,563		0.2
7.375%, 01/15/17 ¹⁰		1,375		1,409,375		1.3
RRI Energy, Inc., 7.625%, 06/15/14		500		495,000		0.5
Texas Competitive Electric Holdings Co. LLC, Sr Nt, 10.250%, 11/01/15 ⁶		350		229,250		0.2

				6,591,877		6.0
MULTI-UTILITIES — 0.2%
Energy Future Holdings Corp., 10.875%, 11/01/17		89		53,400		0.0	¹²
Energy Future Intermediate Holding Co. LLC/EFIH Finance, Inc., 10.000%, 12/01/20		230		228,255		0.2

				281,655		0.2

Total Utilities				6,975,251		6.3

Total Corporate Bonds
(Cost $115,634,809)				113,864,684		103.5

LOAN PARTICIPATIONS & ASSIGNMENTS — 23.2%
CONSUMER DISCRETIONARY — 8.7%
AUTO COMPONENTS — 0.4%
Remy, 1st Lien Term Loan, 5.789%, 12/06/13		4		3,648		0.0	¹²
5.792%, 12/06/13		48		47,632		0.1
5.898%, 12/06/13		96		95,264		0.1
Remy, 2nd Lien Term Loan, 8.792%, 06/06/14		250		249,297		0.2

				395,841		0.4

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

Schedule of Portfolio Investments (continued)

As of September 30, 2010 (Unaudited)


Description	Par (000)			Value		Percent of Net Assets*

AUTOMOBILES — 0.6%
Ford Motor Co., Term Loan B, 3.010%, 12/15/13	$	293		$	286,720		0.3	%
3.010%, 12/15/13		33			32,544		0.0	¹²
3.050%, 12/15/13		339			331,352		0.3

					650,616		0.6
GAMING — 1.4%
Fontainebleau Las Vegas Holdings LLC, Delayed Draw Term Loan B, 4.316%, 06/06/14 ^1,4		141			28,996		0.0	¹²
Fontainebleau Las Vegas Holdings LLC, Initial Term Loan, 4.527%, 06/06/14 ^1,4		282			57,968		0.1
Harrah’s Operating Co., Inc., Term B-2 Loan, 3.498%, 01/28/15		1,006			865,862		0.8
MGM Resorts International, Class D Loan, 6.000%, 10/03/11		300			290,196		0.3
Suqarnouse HSP Gaming LP, Term Loan, 11.250%, 09/23/14		255			256,594		0.2

					1,499,616		1.4
HOTELS, RESTAURANTS & LEISURE — 0.3%
Outback Steakhouse, Inc., Prefunded RC Commitment, 0.112%, 06/14/13		2			2,262		0.0	¹²
0.445%, 06/14/13		—	¹¹		296		0.0	¹²
2.625%, 06/14/13		2			1,580		0.0	¹²
Outback Steakhouse, Inc., Term Loan B, 2.563%, 06/14/13		—	¹¹		296		0.0	¹²
2.563%, 06/14/13		—	¹¹		246		0.0	¹²
2.625%, 06/14/14		415			380,979		0.3
2.688%, 06/14/13		—	¹¹		246		0.0	¹²

					385,905		0.3
MEDIA — 4.8%
Cengage Learning Acquisitions, Term Loan, 2.540%, 07/15/14		492			441,188		0.4
Clear Channel Communications, Inc., Term Loan B, 3.906%, 01/29/16		593			465,746		0.4
Dex Media West, New Term Loan, 7.000%, 10/24/14		14			12,105		0.0	¹²
7.000%, 10/24/14		2			1,655		0.0	¹²
7.500%, 10/24/14		13			11,593		0.0	¹²
Entercom Radio LLC, Term Loan A, 2.256%, 06/30/12		37			35,920		0.0	¹²
2.256%, 06/30/12		878			842,738		0.8
High Plains Broadcasting Operating Co. LLC, Term Loan, 9.000%, 09/14/16		191			189,986		0.2


Description	Par (000)		Value		Percent of Net Assets*

MEDIA (continued)
Idearc, Inc., (SuperMedia), Exit Term Loan, 11.000%, 12/31/15	$	741	$	577,558		0.5	%
Newport Television LLC, Term Loan, 9.000%, 09/14/16		732		726,751		0.7
Newsday, Fixed Rate Term Loan, 10.500%, 08/01/13		250		265,470		0.2
R.H. Donnelley, Inc., Exit Term Loan, 9.000%, 10/24/14		224		189,580		0.2
9.000%, 10/24/14		24		20,529		0.0	¹²
9.000%, 10/24/14		212		179,371		0.2
Univision Communications, Inc., 1st Lien Term Loan, 2.506%, 09/20/14		1,392		1,222,269		1.1
2.506%, 09/20/14		89		78,514		0.1

				5,260,973		4.8
SPECIALTY RETAIL — 0.4%
Burlington Coat Factory, Term Loan B, 2.530%, 05/28/13		249		238,831		0.2
2.540%, 05/28/13		251		241,394		0.2

				480,225		0.4
TEXTILES, APPAREL & LUXURY GOODS — 0.8%
Claire’s Stores, Term Loan B, 3.049%, 05/29/14		852		741,888		0.7
3.225%, 05/29/14		142		123,352		0.1

				865,240		0.8

Total Consumer Discretionary				9,538,416		8.7

CONSUMER STAPLES — 0.4%
FOOD & STAPLES RETAILING — 0.4%
Rite Aid Corp., Term Loan 3, 6.000%, 06/04/14		491		478,564		0.4

ENERGY — 0.1%
OIL, GAS & CONSUMABLE FUELS — 0.1%
Big West Oil, Term Loan B, 12.000%, 01/22/15		90		91,632		0.1

FINANCIALS — 2.7%
DIVERSIFIED FINANCIAL SERVICES — 1.5%
Capmark Financial Group, Term Roll-Up Certified Tranche, 4.750%, 03/23/11		700		590,696		0.5
Capmark Financial Group, U.S. Term Loan, 3.250%, 03/23/13		1,435		522,834		0.5
Capmark Financial Group, Unsecured Bridge Loan, 5.250%, 03/23/13		175		60,550		0.0	¹²

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

Schedule of Portfolio Investments (continued)

As of September 30, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

DIVERSIFIED FINANCIAL SERVICES (continued)
CIT Group, Inc., Tranche 3 Term Loan, 6.250%, 07/27/15	$	54	$	53,923		0.1	%
6.250%, 07/27/15		41		41,533		0.1
6.250%, 07/27/15		33		33,037		0.0	¹²
6.250%, 07/27/15		49		49,308		0.1
6.250%, 07/27/15		125		126,220		0.1
6.250%, 07/27/15		126		126,906		0.1
6.250%, 07/27/15		30		30,081		0.0	¹²
6.250%, 07/27/15		16		16,519		0.0	¹²
6.250%, 07/27/15		30		30,081		0.0	¹²

				1,681,688		1.5
INSURANCE — 0.7%
HMSC Corp., 1st Lien Term Loan, 2.506%, 04/03/14 ^3,9		956		755,618		0.7

REAL ESTATE INVESTMENT TRUSTS (REITS) — 0.5%
General Growth Properties, Inc., Revolving Credit Commitment, 5.250%, 02/24/10 ^1,4		540		574,914		0.5

Total Financials				3,012,220		2.7

INDUSTRIALS — 2.1%
AIRLINES — 0.9%
Delta Air Lines, Inc., 1st Lien Credit Linked Deposit, 2.244%, 04/30/12		64		61,961		0.0	¹²
2.256%, 04/30/12		8		7,242		0.0	¹²
2.257%, 04/30/12		413		399,127		0.4
Delta Air Lines, Inc., Senior Secured Term Loan, 8.750%, 09/30/13		495		500,881		0.5

				969,211		0.9
BUILDING PRODUCTS — 0.8%
Jacuzzi Brands, Inc., 1st Lien Term Loan B, 2.725%, 02/07/14		893		725,578		0.6
Jacuzzi Brands, Inc., Synthetic Credit Facility, Letter of Credit, 0.189%, 02/07/14		81		65,904		0.1
Jacuzzi Luxco S.A.R.L., New Term Loan, 4.289%, 11/15/13 ^3,9		123		123,089		0.1

				914,571		0.8
COMMERCIAL SERVICES & SUPPLIES — 0.4%
Clarke American Corp., Term Loan B, 2.756%, 06/27/14		71		62,202		0.1
2.756%, 06/27/14		97		85,375		0.1


Description	Par (000)		Value		Percent of Net Assets*

COMMERCIAL SERVICES & SUPPLIES (continued)
2.789%, 06/27/14	$	102	$	89,278		0.1	%
2.789%, 06/27/14		155		136,112		0.1
2.789%, 06/27/14		59		51,835		0.0	¹²

				424,802		0.4

Total Industrials				2,308,584		2.1

INFORMATION TECHNOLOGY — 3.3%
Electronic Equipment, Instruments & Components — 0.8%
Sirius Computer Solutions, 2nd Lien Term Loan, 6.289%, 05/30/13 ^3,9		1,000		900,000		0.8

IT SERVICES — 2.2%
Compucom Systems, Inc., Term Loan, 3.760%, 08/23/14 ^3,9		894		853,483		0.8
First Data Corp., Initial Tranche B-1 Term Loan, 3.006%, 09/24/14		346		304,781		0.3
3.006%, 09/24/14		16		13,945		0.0	¹²
3.006%, 09/24/14		11		9,266		0.0	¹²
First Data Corp., Initial Tranche B-3 Term Loan, 3.006%, 09/24/14		1,339		1,177,441		1.1
3.006%, 09/24/14		59		52,282		0.0	¹²

				2,411,198		2.2
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.3%
Freescale Semiconductor, Inc., Extended Term Loan, 4.509%, 11/29/13		393		358,035		0.3

Total Information Technology				3,669,233		3.3

MATERIALS — 3.5%
CHEMICALS — 1.3%
Cristal Inorganic Chemicals (Millenium), 1st Lien Term Loan, 2.539%, 05/15/14		883		832,078		0.8
Cristal Inorganic Chemicals (Millenium), 2nd Lien Term Loan, 6.039%, 05/15/14 ^3,9		500		460,000		0.4
Styron LLC, Term Loan, 7.500%, 07/10/16		123		124,981		0.1

				1,417,059		1.3
DIVERSIFIED MANUFACTURING — 1.0%
BOC Edwards, 1st Priority Lien, 2.256%, 05/31/14		1,187		1,076,612		1.0

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

Schedule of Portfolio Investments (continued)

As of September 30, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

PAPER & FOREST PRODUCTS — 1.2%
Abitibi-Consolidated Co. of Canada, Term Loan, 11.000%, 03/31/12	$	1,329	$	1,342,085		1.2	%

Total Materials				3,835,756		3.5

TELECOMMUNICATION SERVICES — 0.5%
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.5%
Level 3 Communications, Tranche A Term Loan, 2.507%, 03/13/14		71		65,077		0.1
2.777%, 03/13/14		179		162,691		0.1
Level 3 Communications, Tranche B Term Loan, 11.500%, 03/13/14		250		269,687		0.3

Total Telecommunication Services				497,455		0.5

UTILITIES — 1.9%
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 1.9%
Calpine Corp., 1st Priority Lien, 3.165%, 03/29/14		717		699,882		0.6
Texas Competitive Electric Holdings Co. LLC, Initial Tranche B-2 Term Loan, 3.758%, 10/10/14		82		63,577		0.1
3.758%, 10/10/14		364		282,875		0.2
3.789%, 10/10/14		3		1,941		0.0	¹²
4.066%, 10/10/14		521		404,832		0.4
Texas Competitive Electric Holdings Co. LLC, Initial Tranche B-3 Term Loan, 3.758%, 10/10/14		247		191,411		0.2
3.789%, 10/10/14		1		495		0.0	¹²
TPF Generation Holdings LLC, 2nd Lien Term Loan, 4.539%, 12/15/14		500		452,815		0.4

Total Utilities				2,097,828		1.9

Total Loan Participations & Assignments
(Cost $26,250,800)				25,529,688		23.2

ASSET-BACKED SECURITIES — 1.3%
Countrywide Asset-Backed Certificates, Series 2004-13, Class MV8, VAR, 1.956%, 01/25/35 ^3,9		115		5,408		0.0	¹²
Long Beach Mortgage Loan Trust, Series 2004-5, Class M6, VAR, 2.756%, 09/25/34 ^3,9		57		3,851		0.0	¹²


Description	Par (000)			Value		Percent of Net Assets*

ASSET-BACKED SECURITIES (continued)
Unipac IX LLC, 13.000%, 04/11/13 ^3,9	$	1,500		$	1,473,058		1.3	%

Total Asset-Backed Securities
(Cost $1,638,822)					1,482,317		1.3

Total Fixed Income Investments
(Cost $143,524,431)					140,876,689		128.0

COMMON STOCKS — 5.7%
CONSUMER DISCRETIONARY — 0.4%
AUTO COMPONENTS — 0.0%
Glasstech, Inc., Class C ^1,3,9		—	¹¹		—		0.0

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

LEISURE EQUIPMENT & PRODUCTS — 0.3%
True Temper Holdings, Inc. ADR ^1,3,9		43			343,968		0.3

MEDIA — 0.1%
Dex One Corp. ¹		10			128,056		0.1

TEXTILES, APPAREL & LUXURY GOODS — 0.0%
Broder Brothers Co. ^1,3,9		38			—		0.0
WestPoint International, Inc. ^1,3,9		27			—		0.0

					—		0.0

Total Consumer Discretionary					472,025		0.4

CONSUMER STAPLES — 1.1%
FOOD PRODUCTS — 0.2%
Eurofresh, Inc., ADR ^1,3,9		106			261,536		0.2

HOUSEHOLD PRODUCTS — 0.9%
Spectrum Brands Holdings, Inc. ^1,6		35			945,538		0.9

Total Consumer Staples					1,207,074		1.1

INDUSTRIALS — 0.4%
BUILDING PRODUCTS — 0.2%
Jupiter Holding I Corp. ^1,3,9		8			187,887		0.2

COMMERCIAL SERVICES & SUPPLIES — 0.1%
Quad/Graphics, Inc. ¹		3			149,037		0.1

ROAD & RAIL — 0.1%
Quality Distribution, Inc. ¹		16			103,570		0.1

Total Industrials					440,494		0.4

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

Schedule of Portfolio Investments (continued)

As of September 30, 2010 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

INFORMATION TECHNOLOGY — 0.8%
COMPUTERS & PERIPHERALS — 0.0%
Stratus Technologies, Inc., ADR ^1,3,9	$	8	$	—		0.0	%

IT SERVICES — 0.1%
Unisys Corp. ^1,3,8,9		3		67,253		0.1

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.7%
MagnaChip Semiconductor S.A./MagnaChip Semiconductor Finance Co., ADR, (Luxembourg) ^1,3,9		793		749,417		0.7

Total Information Technology				816,670		0.8

MATERIALS — 2.7%
CHEMICALS — 1.7%
LyondellBasell Industries N.V., (Netherlands), Class A ¹		42		994,885		0.9
LyondellBasell Industries N.V., (Netherlands), Class B ¹		38		909,830		0.8

				1,904,715		1.7
CONSTRUCTION MATERIALS — 0.1%
U.S. Concrete, Inc. ¹		10		90,189		0.1

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

PAPER & FOREST PRODUCTS — 0.9%
Smurfit-Stone Container Corp. ¹		53		973,518		0.9

Total Materials				2,995,505		2.7

TELECOMMUNICATION SERVICES — 0.3%
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.3%
AboveNet, Inc. ^1,3,9		7		348,586		0.3
XO Holdings, Inc. ¹		1		310		0.0	¹²

				348,896		0.3

Total Telecommunication Services				348,896		0.3

UTILITIES — 0.0% ¹²
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.0% ¹²
Mirant Corp. ¹		1		9,303		0.0	¹²

Total Common Stocks
(Cost $8,614,635)				6,289,967		5.7


Description	Par (000)			Value		Percent of Net Assets*

PREFERRED STOCKS — 2.6%
CONSUMER DISCRETIONARY — 0.6%
AUTO COMPONENTS — 0.0%
Glasstech, Inc., Pfd, Series C, ^1,3,9	$	—	¹¹	$	—		0.0	%

HOUSEHOLD DURABLES — 0.4%
M/I Homes, Inc., Pfd, Series A, 9.750%, 03/15/12 ^1,14		22			392,438		0.4

MEDIA — 0.2%
Spanish Broadcasting System, Inc., Pfd ^1,3,9		481			3,224		0.0	¹²
Spanish Broadcasting System, Inc., Pfd, Series B, PIK, 10.750%, 03/11/10 ^1,3,9,14		—	¹¹		203,010		0.2

					206,234		0.2

Total Consumer Discretionary					598,672		0.6

CONSUMER STAPLES — 0.1%
FOOD PRODUCTS — 0.1%
Eurofresh, Inc., Pfd, ADR ^1,3,9		—	¹¹		147,687		0.1

FINANCIALS — 1.9%
COMMERCIAL BANKS — 1.5%
CoBank ACB, Pfd, 11.000%, 10/01/14 ^3,9,14		30			1,644,375		1.5

CONSUMER FINANCE — 0.2%
Ally Financial, Inc., 7.000% ¹⁴		—	¹¹		229,375		0.2

DIVERSIFIED FINANCIAL SERVICES — 0.2%
Citi Group Capital XIII, 7.875%, 10/30/40 ¹		7			186,480		0.2

Total Financials					2,060,230		1.9

INFORMATION TECHNOLOGY — 0.0%
COMPUTERS & PERIPHERALS — 0.0%
Stratus Technologies, Inc., ADR ^1,3,9		2			—		0.0

Total Preferred Stocks
(Cost $3,383,399)					2,806,589		2.6

Total Equity Investments
(Cost $11,998,034)					9,096,556		8.3

SHORT-TERM INVESTMENT — 1.6%
INVESTMENT COMPANY — 1.6%
JPMorgan Prime Money Market Fund, Institutional Class Shares, 0.130% ^5,13 (Cost $1,714,118)		1,714			1,714,118		1.6

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

Schedule of Portfolio Investments (continued)

As of September 30, 2010 (Unaudited)


Description	Par (000)		Value			Percent of Net Assets*

INVESTMENTS OF CASH COLLATERAL FOR SECURITIES ON LOAN — 4.5%
INVESTMENT COMPANY — 4.5%
JPMorgan Prime Money Market Fund, Capital Shares, 0.160%, 09/01/10 ^5,13 (Cost $4,914,775)	$	4,915	$	4,914,775			4.5

TOTAL INVESTMENTS
(Cost $162,151,358)				156,602,138			142.4

Preferred Stock and Liabilities in Excess of Other Assets				(46,634,588	)		(42.4	)

NET ASSETS			$	109,967,550			100.0	%

ADR

American Depositary Receipt

Company

Disc

Discount

Guar

Guaranteed

Mtg

Mortgage

Note

Pfd

Preferred

PIK

Payment in-kind

Sec’d

Secured

Senior

Sub

Subordinate

VAR

Variable Rate Security. The interest rate shown is the rate in effect as of September 30, 2010.

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 $40,213,424 and 36.6% of net assets applicable to common stockholders.

Fair valued security. These securities amounted to $13,275,979 and 12.1% 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 $4,785,072.

⁷

Step-up bond. Interest rate is effective rate as of September 30, 2010.

⁸

Restricted security. This security amounted to $67,253 and 0.1% of net assets applicable to common stockholders.

⁹

Security deemed to be illiquid. These securities amounted to $13,046,947 and 11.9 % 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 one thousand (par or shares).

¹²

Amount rounds to less than 0.1%.

¹³

The rate shown is the current yield as of September 30, 2010.

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 September 30, 2010.

As of September 30, 2010, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:


Aggregate gross unrealized appreciation	$	10,209,291
Aggregate gross unrealized depreciation		(15,758,511	)

Net unrealized appreciation/depreciation	$	(5,549,220	)

Federal income tax cost of investments	$	162,151,358

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

•

Level 1 — quoted prices in active markets for identical securities

•

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

•

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

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

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

Schedule of Portfolio Investments (concluded)

As of September 30, 2010 (Unaudited)

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


	Level 1 Quoted prices		Level 2 Other significant observable inputs			Level 3 Significant unobservable inputs			Total
Investments in Securities
Common Stocks
Consumer Discretionary	$	128,056	$	—		$	343,969		$	472,025
Consumer Staples		945,538		—			261,536			1,207,074
Industrials		252,607		—			187,887			440,494
Information Technology		—		—			816,670			816,670
Materials		2,968,422		—			27,083			2,995,505
Telecommunication Services		310		—			348,586			348,896
Utilities		9,303		—			—			9,303

Total Common Stocks		4,304,236		—			1,985,731			6,289,967

Preferred Stocks
Consumer Discretionary		—		392,438			206,234			598,672
Consumer Staples		—		—			147,687			147,687
Financials		186,480		229,375			1,644,375			2,060,230
Information Technology		—		—			—	(a)		—	(a)

Total Preferred Stocks		186,480		621,813			1,998,296			2,806,589

Debt Securities
Asset-Backed Securities		—		—			1,482,317			1,482,317
Corporate Bonds
Consumer Discretionary		—		33,426,730			373,108			33,799,838
Consumer Staples		—		5,179,259			400,659			5,579,918
Energy		—		11,346,018			—			11,346,018
Financials		—		12,089,105			860,000			12,949,105
Health Care		—		4,441,857			859,254			5,301,111
Industrials		—		12,852,405			1,742,946			14,595,351
Information Technology		—		4,819,233			421,046			5,240,279
Materials		—		9,784,376			60,432			9,844,808
Telecommunication Services		—		8,233,005			—			8,233,005
Utilities		—		6,975,251			—			6,975,251

Total Corporate Bonds		—		109,147,239			4,717,445			113,864,684

Loan Participations & Assignments
Consumer Discretionary		—		9,538,416			—			9,538,416
Consumer Staples		—		478,564			—			478,564
Energy		—		91,632			—			91,632
Financials		—		2,256,602			755,618			3,012,220
Industrials		—		2,185,495			123,089			2,308,584
Information Technology		—		1,915,750			1,753,483			3,669,233
Materials		—		3,375,756			460,000			3,835,756
Telecommunication Services		—		497,455			—			497,455
Utilities		—		2,097,828			—			2,097,828

Total Loan Participations & Assignments		—		22,437,498			3,092,190			25,529,688

Short-Term Investments Investment Companies		1,714,118		—			—			1,714,118
Investments of Cash Collateral for Securities on Loan Investment Companies		4,914,775		—			—			4,914,775

Total Investments in Securities	$	11,119,609	$	132,206,550		$	13,275,979		$	156,602,138

Depreciation in Other Financial Instruments
Swaps	$	—	$	(199,142	)	$	—		$	(199,142	)

(a)

Security has no value.

There were no significant transfers between Levels 1 and 2 during the period ended September 30, 2010.

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

Schedule of Portfolio Investments (continued)

As of September 30, 2010 (Unaudited)

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


	Balance as of 12/31/09			Realized gain (loss)			Change in unrealized appreciation (depreciation)			Net amortization (accretion)			Net purchases (sales)			Transfers into Level 3		Transfers out of Level 3			Balance as of 09/30/10
Investments in Securities
Asset-Backed Securities	$	1,475,849		$	329		$	5,458		$	6,359		$	(5,678	)	$	—	$	—		$	1,482,317
Common Stocks — Consumer Discretionary		300,973			—			42,996			—			—			—		—			343,969
Common Stocks — Consumer Staples		52,943			—			208,593			—			—			—		—			261,536
Common Stocks — Financials		—			—			10,675			—			177,212			—		—			187,887
Common Stocks — Industrials		855,499			878,545			(453,011	)		—			(1,253,950	)		—		—			27,083
Common Stocks — Information Technology		111,036			(13	)		581,692			—			—			123,955		—			816,670
Common Stocks — Materials		62,100			(208,800	)		191,700			—			(45,000	)		—					—
Common Stocks — Telecommunication Services		—			—			(193,409	)		—			208,600			333,395		—			348,586
Corporate Bonds — Consumer Discretionary		291,226			(1	)		52,840			(878	)		29,921			—		—			373,108
Corporate Bonds — Consumer Staples		2,518,525			13			8,237			—			(576,116	)		—		(1,550,000	)		400,659
Corporate Bonds — Financials		730,000			—			130,294			(294	)		—			—		—			860,000
Corporate Bonds — Health Care		950,328			(1	)		(225,593	)		(110	)		134,630			—		—			859,254
Corporate Bonds — Industrials		1,873,259			(2,590,091	)		2,881,641			(629	)		(346,895	)		—		(74,339	)		1,742,946
Corporate Bonds — Information Technology		405,358			—			15,688			—			—			—		—			421,046
Corporate Bonds — Materials		871,033			—			60,432			—			—			—		(871,033	)		60,432
Loan Participation & Assignments — Financials		—			—			(17,935	)		—			(6,285	)		779,838		—			755,618
Loan Participation & Assignments — Industrials		828,353			(1,059,640	)		996,926			—			(95,580	)		122,540		(669,510	)		123,089
Loan Participation & Assignments — Information Technology		2,046,167			810			405,497			3,475			(702,466	)		—		—			1,753,483
Loan Participation & Assignments — Materials		1,185,084			—			65,000			—			—			—		(790,084	)		460,000
Preferred Stocks — Consumer Discretionary		77,723			—			128,511			—			—			—		—			206,234
Preferred Stocks — Consumer Staples		139,000			—			—			—			8,687			—		—			147,687
Preferred Stocks — Financials		421,800			49,843			123,271			(85	)		(443,893	)		1,493,439		—			1,644,375
Preferred Stocks — Information Technology		—	(a)		—			—			—			—			—		—			—	(a)
Warrants — Industrials		—	(a)		—			—			—			—			—		—			—
Warrants — Telecommunication Services		41,530			(18,792	)		167,070			—			(189,808	)		—		—			—

Total	$	15,237,786		$	(2,947,798	)	$	5,186,573		$	7,838		$	(3,106,621	)	$	2,853,167	$	(3,954,966	)	$	13,275,979

(a)

Security has zero value.

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

Schedule of Portfolio Investments (concluded)

As of September 30, 2010 (Unaudited)

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

Transfers from Level 2 to Level 3 or from Level 3 to Level 2 are due to a decline or an increase in market activity (e.g. frequency of trades), which resulted in a lack of or increase in available market inputs to determine price.

The change in unrealized appreciation (depreciation) attributable to securities owned at September 30, 2010, which were valued using significant unobservable inputs (Level 3) amounted to $1,179,137.

The Fund entered into interest payment swap arrangements with Citibank, N. A. New York (Citibank) for the purpose of partially hedging its dividend payment obligations with respect to the Auction Rate Preferred Shares (ARPS). Pursuant to each of the swap arrangements, the Fund makes payments to Citibank on a monthly basis at fixed annual rates. In exchange for such payments Citibank makes payments to the Fund on a monthly basis at a variable rate determined with reference to the one month London Interbank Offered Rate (LIBOR). The variable rates ranged from 0.228% to 0.354% for the period ended September 30, 2010. The effective date, upfront premiums, notional contract amount, maturity, fixed and floating annual rates and unrealized appreciation/depreciation of the swaps are as follows:


Effective Date	Upfront Premiums (Paid)/Received		Notional Contract Amount		Maturity		Payments Made by the Fund			Payments Received by the Fund	Floating Annual Rate*			Unrealized Appreciation/ (Depreciation)
12/01/06		—	$	5 million		12/01/10		5.010	% monthly	1 month LIBOR monthly		0.256	%	$	(59,308	)
11/30/07		—	$	5 million		06/01/11		4.000	% monthly	1 month LIBOR monthly		0.256	%		(139,834	)

														$	(199,142	)

Represents rate in effect at September 30, 2010.

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 /
		Patricia A. Maleski
		President and Principal Executive Officer
		November 29, 2010

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.