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

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

Dear Shareholders:

2011 First Quarter Review

In the first quarter of 2011, high yield bonds (also known as “junk bonds”) were supported by strong corporate balance sheets, improving corporate revenue and a robust primary issuance market, which provided companies with access to liquidity and the ability to roll over debt at attractive levels. Flows into high yield and leveraged loan mutual funds remained strong during the quarter, as investors continued to favor these investments over other areas of the U.S. fixed income market.

For the quarter ended March 31, 2011, the Pacholder High Yield Fund, Inc. (the “Fund”) returned 6.15% based on Net Asset Value (“NAV”) compared to the 3.74% return for the Credit Suisse High Yield Index, Developed Countries Only (the “Index”) and the 5.04% average total return of the Morningstar Closed-End High Yield Category.

The Fund’s relative outperformance for the quarter ended March 31, 2011 was due in large part to security selection in the financial, chemical and media/telecom segments. Security selection in the consumer product, food/tobacco and services segments detracted from the Fund’s overall performance. The Fund’s relative outperformance in the first quarter was enhanced due to its leverage obtained through its Auction Rate Preferred Shares (“ARPS”).

According to Moody’s Investor Services, Inc. (Moody’s), the global speculative-grade issuer-weighted default rate declined to 2.6% in March 2011 from the December 2010 rate of 3.1%. Moody’s predicted, under its baseline scenario, that the global speculative-grade default rate will continue to fall to 1.7% by the 2011 year-end. (This prediction is based on certain assumptions and there is no assurance it will be accurate.)

As of March 31 2011, the Fund’s largest industry sector concentration was in media/telecom, which accounted for 15.8% of its market value. For the quarter, the average price of the Index rose 2.68 points from $100.94 to $103.62, the average yield decreased 0.49% from 7.45% to 6.96% and the spread over the comparable U.S. Treasury narrowed 0.67% from 5.72% to 5.05%.

Fund Strategy

The Fund continued to use a credit bar bell investment strategy. To implement this strategy, the Fund invested a portion of its assets in relatively liquid high yield securities that demonstrated improving fundamentals, and took targeted credit risk when the Fund’s portfolio managers’ analysis indicated a favorable risk/reward opportunity. This targeted credit risk included investments in performing and non-performing bonds and loan assignments of firms that were trading at distressed levels or emerging from an administrative re-organization.

Auction Rate Preferred Shares and Dividends

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

Since March 2010, the Fund paid a monthly dividend of $0.06 per common share. Beginning with the April 2011 dividend, the Board of Directors authorized the Fund to increase the amount of monthly dividends from $0.06 to $0.07 per common share. The Fund anticipates paying a monthly dividend of $0.07, subject to market conditions and the requirement that the Fund maintain an asset coverage of at least 200% of the ARPS after payment of dividends. The amount of monthly dividend may be more or less than the actual income earned by the Fund in a given month and the Board of Directors will continue to monitor the continuing appropriateness of the dividend level in light of market conditions and income earned by the Fund over time.

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

Sincerely,

LOGO

George C.W. Gatch

CEO-Investment Management Americas

J.P. Morgan Asset Management

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

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

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

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

Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or

sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting and legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.

Availability of Portfolio Holdings and Other Information

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

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

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

Schedule of Portfolio Investments

As of March 31, 2011 (Unaudited)


Description	Par (000)			Value		Percent of Net Assets*

CORPORATE BONDS — 106.6%
CONSUMER DISCRETIONARY — 33.2%
AUTOMOBILES — 2.2%
Ford Holdings LLC, 9.300%, 03/01/30	$	262		$	308,681		0.3	%
9.375%, 03/01/20 ¹⁰		150			174,880		0.1
Ford Motor Co., 7.750%, 06/15/43		750			748,279		0.7
8.900%, 01/15/32		125			142,275		0.1
Ford Motor Co., Nt, 9.980%, 02/15/47		125			149,441		0.1
Motors Liquidation Co.,
0.000%, 03/15/36 ^1,4		55	Units		8,663		0.0	¹²
5.250%, 03/06/32		25	Units		182,549		0.2
6.250%, 07/15/33		15	Units		109,636		0.1
7.250%, 04/15/41		—	Units ¹¹		1,476		0.0	¹²
7.250%, 07/15/41		—	Units ¹¹		631		0.0	¹²
7.250%, 02/15/52		7	Units		50,089		0.0	¹²
7.375%, 05/15/48		10	Units		66,244		0.1
7.375%, 10/01/51		—	Units ¹¹		1,674		0.0	¹²
Motors Liquidation Co., Debentures,
6.750%, 05/01/28 ^1,4		50			14,000		0.0	¹²
8.100%, 06/15/24 ^1,4		1,725			487,313		0.4
8.375%, 07/15/33 ^1,4		425			126,437		0.1

					2,572,268		2.2
BROADCASTING & CABLE TV — 4.3%
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			13,125		0.0	¹²
9.375%, 11/15/09 ^1,4		560			9,800		0.0	¹²
Cablevision Systems Corp., 8.000%, 04/15/20		95			103,550		0.1
CCO Holdings LLC/CCO Holdings Capital Corp., 7.000%, 01/15/19		235			240,875		0.2
CCO Holdings LLC/CCO Holdings Capital Corp., Co Guar,
7.250%, 10/30/17		340			355,300		0.3
7.875%, 04/30/18		90			95,625		0.1
8.125%, 04/30/20		550			598,125		0.5
CCO Holdings LLC/CCO Holdings Capital Corp., Private Placement, 7.000%, 01/15/19 ²		90			92,025		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	$	709	$	739,133		0.6	%
Charter Communications Operating LLC/Charter Communications Operating Capital, Private Placement, Nt, 10.875%, 09/15/14 ²		150		168,000		0.2
CSC Holdings LLC,
7.625%, 07/15/18		50		54,750		0.1
8.625%, 02/15/19		44		50,380		0.0	¹²
CSC Holdings LLC, Sr Nt, 7.875%, 02/15/18		96		106,560		0.1
Mediacom LLC/Mediacom Capital Corp., 9.125%, 08/15/19		367		392,690		0.3
Sirius XM Radio, Inc., Private Placement,
8.750%, 04/01/15 ²		180		202,500		0.2
9.750%, 09/01/15 ²		150		168,938		0.1
Telesat Canada/Telesat LLC, (Canada), 11.000%, 11/01/15		136		151,470		0.1
12.500%, 11/01/17 ¹⁰		150		178,875		0.2
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, Private Placement, Sr Sec’d Nt, (Germany), 8.125%, 12/01/17 ²		375		394,687		0.4
Virgin Media Finance plc, (United Kingdom), 8.375%, 10/15/19		225		253,125		0.2
Virgin Media Finance plc, Sr Nt, (United Kingdom), 9.125%, 08/15/16		250		265,000		0.2
XM Satellite Radio, Inc., Private Placement, Sr Nt, 13.000%, 08/01/13 ²		330		391,875		0.3

				5,026,408		4.3
DISTRIBUTORS — 0.3%
McJunkin Red Man Corp., Private Placement, Sr Nt, 9.500%, 12/15/16 ²		355		359,437		0.3

DIVERSIFIED CONSUMER SERVICES — 1.2%
Knowledge Learning Corp., Inc., Private Placement, Sr Sub Nt, 7.750%, 02/01/15 ^2,10		700		693,000		0.6

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

DIVERSIFIED CONSUMER SERVICES (continued)
Mac-Gray Corp., Sr Nt, 7.625%, 08/15/15 ¹⁰	$	650	$	663,000		0.6	%

				1,356,000		1.2
GAMING — 6.6%
Ameristar Casinos, Inc., Private Placement, Nt, 7.500%, 04/15/21 ²		238		235,918		0.2
Caesars Entertainment Operating Co., Inc., 11.250%, 06/01/17		300		340,875		0.3
Chukchansi Economic Development Authority, Private Placement, 8.000%, 11/15/13 ²		766		566,840		0.5
CityCenter Holdings LLC/CityCenter Finance Corp., Private Placement,
7.625%, 01/15/16 ²		225		232,313		0.2
PIK, 10.750%, 01/15/17 ²		325		335,562		0.3
Isle of Capri Casinos, Inc., Private Placement, 7.750%, 03/15/19 ²		300		298,500		0.3
Isle of Capri Casinos, Inc., Sr Nt, 7.000%, 03/01/14		250		248,125		0.2
Mandalay Resort Group, Sr Nt, 7.625%, 07/15/13		200		198,000		0.2
Mashantucket Western Pequot Tribe, Private Placement, 5.912%, 09/01/21 ^1,2,4		475		216,111		0.2
8.500%, 11/15/15 ^1,2,4		820		82,000		0.0	¹²
MCE Finance Ltd., Sr Sec’d Nt, (Cayman Islands), 10.250%, 05/15/18		225		260,719		0.2
MGM Resorts International, Co Guar, 5.875%, 02/27/14		30		28,650		0.0	¹²
6.625%, 07/15/15		231		218,872		0.2
7.500%, 06/01/16		140		132,300		0.1
7.625%, 01/15/17		201		189,694		0.2
MGM Resorts International, Private Placement, Nt, 10.000%, 11/01/16 ²		1,400		1,473,500		1.3
Peninsula Gaming LLC, 8.375%, 08/15/15		350		373,625		0.3
Peninsula Gaming LLC, Private Placement, 8.375%, 08/15/15 ²		50		53,375		0.0	¹²
Pinnacle Entertainment, Inc., 8.750%, 05/15/20		350		364,000		0.3


Description	Par (000)		Value		Percent of Net Assets*

GAMING (continued)
San Pasqual Casino, Private Placement, 8.000%, 09/15/13 ²	$	500	$	500,000		0.4	%
Seminole Hard Rock Entertainment, Inc., Private Placement, VAR, 2.809%, 03/15/14 ²		500		487,500		0.4
Seminole Indian Tribe of Florida, Private Placement, 7.750%, 10/01/17 ²		75		79,312		0.1
Seneca Gaming Corp., Private Placement, 8.250%, 12/01/18 ²		175		180,250		0.1
Shingle Springs Tribal Gaming Authority, Private Placement, Sr Nt, 9.375%, 06/15/15 ^2,10		1,000		660,000		0.6

				7,756,041		6.6
HOTELS, RESTAURANTS & LEISURE — 2.7%
Banc of America Large Loan, Inc., Private Placement, Class HLTN, VAR, 2.005%, 11/15/15 ²		591		558,760		0.5
CKE Holdings, Inc., Private Placement, Nt, PIK, 10.500%, 03/14/16 ²		95		90,012		0.1
CKE Restaurants, Inc., Sr Sec’d Nt, 11.375%, 07/15/18		350		385,875		0.3
Dave & Buster’s, Inc., 11.000%, 06/01/18		30		32,550		0.0	¹²
DineEquity, Inc., Private Placement, 9.500%, 10/30/18 ²		170		184,450		0.2
Dunkin Finance Corp., Private Placement, 9.625%, 12/01/18 ²		190		193,563		0.2
Landry’s Holdings, Inc., Private Placement, 11.500%, 06/01/14 ²		100		99,000		0.1
Landry’s Restaurants, Inc., Private Placement, Sr Sec’d Nt, 11.625%, 12/01/15 ²		120		129,300		0.1
Landry’s Restaurants, Inc., Sr Sec’d Nt, 11.625%, 12/01/15		200		215,500		0.2
Palace Entertainment Holdings LLC/Palace Entertainment Holdings Corp., Private Placement, 8.875%, 04/15/17 ²		125		127,813		0.1
Real Mex Restaurants, Inc., 14.000%, 01/01/13		200		208,000		0.2
Royal Caribbean Cruises Ltd., Sr Nt, (Liberia), 11.875%, 07/15/15		231		283,552		0.2

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

HOTELS, RESTAURANTS & LEISURE (continued)
Speedway Motorsports, Inc., Sr Nt, 8.750%, 06/01/16	$	300	$	328,875		0.3	%
Universal City Development Partners Ltd./UCDP Finance, Inc., 10.875%, 11/15/16		250		280,625		0.2

				3,117,875		2.7
HOUSEHOLD DURABLES — 1.5%
American Standard Americas, Private Placement, 10.750%, 01/15/16 ²		100		106,750		0.1
K Hovnanian Enterprises, Inc., Sr Nt, 10.625%, 10/15/16		445		472,812		0.4
Lennar Corp., Sr Nt, 6.950%, 06/01/18		410		405,900		0.4
M/I Homes, Inc., Private Placement, 8.625%, 11/15/18 ²		375		375,000		0.3
Standard Pacific Corp., Private Placement, Co Guar, 8.375%, 05/15/18 ²		165		171,394		0.1
Standard Pacific Corp., Sr Nt, 10.750%, 09/15/16		210		244,650		0.2

				1,776,506		1.5
INTERNET & CATALOG RETAIL — 0.1%
Affinion Group, Inc., Private Placement, 7.875%, 12/15/18 ²		75		70,500		0.1

LEISURE EQUIPMENT & PRODUCTS — 1.3%
Da-Lite Screen Co., Inc., Sr Nt, 12.500%, 04/01/15		275		305,250		0.3
Eastman Kodak Co., Private Placement, 9.750%, 03/01/18 ²		740		727,050		0.6
FGI Holding Co., Inc., Private Placement, Sr Nt, PIK, 11.250%, 10/01/15 ²		231		227,918		0.2
Icon Health & Fitness, Private Placement, 11.875%, 10/15/16 ²		225		239,063		0.2

				1,499,281		1.3
MEDIA — 7.7%
Barrington Broadcasting Group LLC and Barrington Broadcasting Capital Corp., Sr Sub Nt, 10.500%, 08/15/14		700		705,250		0.6
Block Communications, Inc., Private Placement, Sr Nt, 8.250%, 12/15/15 ^2,10		800		822,000		0.7


Description	Par (000)		Value		Percent of Net Assets*

MEDIA (continued)
Bresnan Broadband Holdings LLC, Private Placement, Co Guar, 8.000%, 12/15/18 ²	$	125	$	131,875		0.1	%
Clear Channel Communications, Inc., Private Placement, Nt, 9.000%, 03/01/21 ²		500		498,750		0.4
Clear Channel Worldwide Holdings, Inc., Sr Nt, 9.250%, 12/15/17		125		136,563		0.1
9.250%, 12/15/17		250		274,062		0.3
DigitalGlobe, Inc., Sr Nt, 10.500%, 05/01/14		250		283,438		0.2
Fisher Communications, Inc., Sr Nt, 8.625%, 09/15/14		500		513,125		0.4
Gannett Co., Inc., Private Placement, 6.375%, 09/01/15 ²		50		52,000		0.0	¹²
7.125%, 09/01/18 ²		200		200,500		0.2
Intelsat Intermediate Holding Co. S.A., (Luxembourg), 9.500%, 02/01/15 ⁷		400		414,000		0.4
Intelsat Jackson Holdings S.A., Private Placement, (Luxembourg), 7.250%, 10/15/20 ²		150		150,000		0.1
7.500%, 04/01/21 ²		50		50,125		0.1
Intelsat Jackson Holdings S.A., Private Placement, Sr Nt, (Luxembourg), 8.500%, 11/01/19 ²		150		161,250		0.1
Intelsat Luxembourg S.A., (Luxembourg), PIK, 11.500%, 02/04/17		1,032		1,132,482		1.0
Intelsat Subsidiary Holding Co. S.A., (Bermuda), 8.875%, 01/15/15		140		144,550		0.1
Intelsat Subsidiary Holding Co. S.A., Private Placement, (Bermuda), 8.875%, 01/15/15 ²		360		369,900		0.3
Lamar Media Corp., Sr Sub Nt, Series B, 6.625%, 08/15/15		125		127,500		0.1
McClatchy Co. (The), 11.500%, 02/15/17		200		225,000		0.2
Media General, Inc., 11.750%, 02/15/17		650		713,375		0.6
Nexstar Broadcasting, Inc./Mission Broadcasting, Inc., 8.875%, 04/15/17		400		433,000		0.4
Nexstar Finance Holdings LLC/Nexstar Finance Holdings, Inc., Sr Disc Nt, 11.375%, 04/01/13 ⁷		349		350,597		0.3

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

MEDIA (continued)
Nielsen Finance LLC/Nielsen Finance Co., Private Placement, 7.750%, 10/15/18 ²	$	50	$	53,625		0.1	%
Radio One, Inc., Private Placement, PIK, 12.500%, 05/24/16 ²		485		510,060		0.4
Sinclair Television Group, Inc., Private Placement, 8.375%, 10/15/18 ²		100		105,750		0.1
Valassis Communications, Inc., Private Placement, 6.625%, 02/01/21 ²		150		145,687		0.1
WMG Acquisition Corp., 7.375%, 04/15/14		202		202,505		0.2
WMG Holdings Corp., Nt, 9.500%, 12/15/14 ⁷		50		51,000		0.1

				8,957,969		7.7
MULTILINE RETAIL — 0.3%
HSN, Inc., 11.250%, 08/01/16		323		365,797		0.3

SPECIALTY RETAIL — 4.0%
Chinos Acquisition Corp., Private Placement, Sr Nt, 8.125%, 03/01/19 ²		175		171,719		0.2
Claire’s Stores, Inc., Private Placement, Nt, 8.875%, 03/15/19 ²		480		458,400		0.4
Giraffe Acquisition Corp., Private Placement, 9.125%, 12/01/18 ²		300		291,000		0.3
Michael’s Stores, Inc., Private Placement, 7.750%, 11/01/18 ²		150		153,000		0.1
Michael’s Stores, Inc., Sr Nt, 0.000%, 11/01/16 ⁷		1,400		1,428,000		1.2
NBC Acquisition Corp., 11.000%, 03/15/13 ⁷		270		51,300		0.0	¹²
Nebraska Book Co., Inc., 8.625%, 03/15/12 ¹⁰		370		321,900		0.3
10.000%, 12/01/11		345		351,900		0.3
Needle Merger Sub Corp., Private Placement, Sr Nt, 8.125%, 03/15/19 ²		200		202,000		0.2
PEP Boys-Manny Moe & Jack, Sr Nt, 7.500%, 12/15/14		500		510,000		0.4
Petco Animal Supplies, Inc., Private Placement, 9.250%, 12/01/18 ²		240		256,800		0.2


Description	Par (000)		Value		Percent of Net Assets*

SPECIALTY RETAIL (continued)
Toys R Us Property Co II LLC, Sr Sec’d Nt, 8.500%, 12/01/17	$	285	$	306,375		0.3	%
Toys R Us, Inc., 7.875%, 04/15/13		118		126,850		0.1

				4,629,244		4.0
TEXTILES, APPAREL & LUXURY GOODS — 1.0%
Broder Brothers Co., Private Placement, PIK, 12.000%, 10/15/13 ²		461		461,024		0.4
Quiksilver, Inc., 6.875%, 04/15/15		748		736,780		0.6

				1,197,804		1.0

Total Consumer Discretionary				38,685,130		33.2

CONSUMER STAPLES — 4.2%
BEVERAGES — 0.3%
Constellation Brands, Inc., Sr Nt, 8.375%, 12/15/14		315		356,738		0.3

FOOD & STAPLES RETAILING — 1.5%
Ingles Markets, Inc., 8.875%, 05/15/17		190		204,013		0.2
Rite Aid Corp., 9.500%, 06/15/17		1,000		898,750		0.8
Rite Aid Corp., Debentures, 7.500%, 03/01/17		600		600,000		0.5

				1,702,763		1.5
FOOD PRODUCTS — 1.1%
Blue Merger Sub, Inc., Private Placement, Sr Nt, 7.625%, 02/15/19 ²		245		248,369		0.2
Eurofresh, Inc., 15.000%, 11/18/16 ^3,9		422		421,977		0.3
Simmons Foods, Inc., Private Placement, 10.500%, 11/01/17 ²		325		350,187		0.3
Smithfield Foods, Inc., Nt, 7.750%, 05/15/13		307		330,025		0.3

				1,350,558		1.1
HOUSEHOLD PRODUCTS — 0.6%
Spectrum Brands Holdings, Inc., PIK, 12.000%, 08/28/19		596		664,835		0.6

PERSONAL PRODUCTS — 0.3%
American Achievement Corp., Private Placement, 10.875%, 04/15/16 ²		360		353,700		0.3

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

TOBACCO — 0.4%
Alliance One International, Inc., Nt, 10.000%, 07/15/16	$	440	$	446,050		0.4	%

Total Consumer Staples				4,874,644		4.2

ENERGY — 10.9%
ENERGY EQUIPMENT & SERVICES — 2.3%
Calfrac Holdings LP, Private Placement, 7.500%, 12/01/20 ²		100		103,500		0.1
Dresser-Rand Group, Inc., Private Placement, 6.500%, 05/01/21 ²		135		139,219		0.1
Exterran Holdings, Inc., Private Placement, 7.250%, 12/01/18 ²		230		234,600		0.2
Gibson Energy ULC/GEP Midstream Finance Corp., Sr Nt, (Canada), 10.000%, 01/15/18		180		188,100		0.1
11.750%, 05/27/14		200		223,000		0.2
Global Geophysical Services, Inc., 10.500%, 05/01/17		85		91,375		0.1
Helix Energy Solutions Group, Inc., Private Placement, 9.500%, 01/15/16 ^2,10		250		263,750		0.2
Key Energy Services, Inc., Nt, 6.750%, 03/01/21		165		167,888		0.1
Parker Drilling Co., 9.125%, 04/01/18		250		268,750		0.2
PHI, Inc., 8.625%, 10/15/18		310		324,337		0.3
Pride International, Inc., 6.875%, 08/15/20		65		73,694		0.1
Seadrill Ltd., (Bermuda), 6.500%, 10/05/15		300		299,250		0.3
Sevan Marine ASA, Private Placement, (Norway), VAR, 3.443%, 05/14/13 ²		200		186,500		0.2
Trinidad Drilling Ltd., Private Placement, Sr Unsec’d Nt, (Canada), 7.875%, 01/15/19 ²		130		137,150		0.1

				2,701,113		2.3
OIL, GAS & CONSUMABLE FUELS — 8.6%
Alta Mesa Holdings/Alta Mesa Finance Services Corp., Private Placement, 9.625%, 10/15/18 ²		240		243,600		0.2
AmeriGas Partners LP/AmeriGas Finance Corp., 6.500%, 05/20/21		145		148,806		0.1
Antero Resources Finance Corp., Nt, 9.375%, 12/01/17		150		163,500		0.1


Description	Par (000)		Value		Percent of Net Assets*

OIL, GAS & CONSUMABLE FUELS (continued)
Arch Coal, Inc., 7.250%, 10/01/20	$	80	$	85,800		0.1	%
Bill Barrett Corp., 9.875%, 07/15/16		150		168,750		0.1
Brigham Exploration Co., Private Placement, 8.750%, 10/01/18 ²		125		138,750		0.1
Carrizo Oil & Gas, Inc., Private Placement, 8.625%, 10/15/18 ²		170		180,200		0.2
Citgo Petroleum Corp., Private Placement, Sr Nt, 11.500%, 07/01/17 ²		300		349,500		0.3
Comstock Resources, Inc., 7.750%, 04/01/19		75		76,312		0.1
Comstock Resources, Inc., Sr Nt, 8.375%, 10/15/17		406		425,285		0.4
Consol Energy, Inc., 8.000%, 04/01/17		170		186,150		0.2
8.250%, 04/01/20		125		138,594		0.1
Consol Energy, Inc., Private Placement, 6.375%, 03/01/21 ²		95		95,119		0.1
Continental Resources, Inc., 7.125%, 04/01/21		75		79,687		0.1
Denbury Resources, Inc., 8.250%, 02/15/20		40		44,700		0.0	¹²
El Paso Performance-Linked Trust, Private Placement, Sr Nt, 7.750%, 07/15/11 ^2,10		450		456,420		0.4
El Paso Pipeline Partners Operating Co., LLC, 6.500%, 04/01/20		85		93,469		0.1
Energy XXI Gulf Coast, Inc., Private Placement, 7.750%, 06/15/19 ²		175		175,437		0.2
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp., Sr Unsecd Nt, 8.625%, 06/15/20		113		122,605		0.1
Forbes Energy Services LLC/Forbes Energy Capital, Inc., 11.000%, 02/15/15		350		364,437		0.3
Foresight Energy LLC/Foresight Energy Corp., Private Placement, 9.625%, 08/15/17 ²		180		193,725		0.2
Forest Oil Corp., Nt, 7.250%, 06/15/19		269		281,105		0.2
Frontier Oil Corp., 6.875%, 11/15/18		65		67,763		0.1
Hilcorp Energy I LP/Hilcorp Finance Co., Private Placement, 7.625%, 04/15/21 ²		75		78,563		0.1

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

OIL, GAS & CONSUMABLE FUELS (continued)
Holly Corp., 9.875%, 06/15/17	$	70	$	79,100		0.1	%
Holly Energy Partners LP/Holly Energy Finance Corp., Private Placement, 8.250%, 03/15/18 ²		130		138,450		0.1
Inergy LP/Inergy Finance Corp., Private Placement,
6.875%, 08/01/21 ²		175		182,438		0.2
7.000%, 10/01/18 ²		250		260,000		0.2
James River Escrow, Inc., 7.875%, 04/01/19 ²		60		62,100		0.1
MarkWest Energy Partners LP/MarkWest Energy Finance Corp., 6.750%, 11/01/20		150		153,750		0.1
NFR Energy LLC/NFR Energy Finance Corp., Private Placement, 9.750%, 02/15/17 ²		360		356,400		0.3
Patriot Coal Corp., 8.250%, 04/30/18		125		133,125		0.1
Penn Virginia Corp., 10.375%, 06/15/16		21		23,730		0.0	¹²
Penn Virginia Resource Partners LP/Penn Virginia Resource Finance Corp., Sr Nt, 8.250%, 04/15/18		160		171,200		0.1
Petroleum Development Corp., Sr Nt, 12.000%, 02/15/18		48		54,420		0.0	¹²
Pioneer Drilling Co., 9.875%, 03/15/18		120		129,000		0.1
QEP Resources, Inc., 6.875%, 03/01/21		140		147,000		0.1
Range Resources Corp., 6.750%, 08/01/20		20		21,300		0.0	¹²
7.250%, 05/01/18		25		26,750		0.0	¹²
Range Resources Corp., Sr Sub Nt, 7.500%, 05/15/16		267		277,013		0.2
SM Energy Co., Private Placement, 6.625%, 02/15/19 ²		130		133,412		0.1
Swift Energy Co., 8.875%, 01/15/20		100		109,250		0.1
Swift Energy Co., Sr Nt, 7.125%, 06/01/17 ¹⁰		1,260		1,288,350		1.1
Targa Resources Partners LP/Targa Resources Partners Finance Corp., 8.250%, 07/01/16		280		294,700		0.3
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Private Placement,
6.875%, 02/01/21 ²		200		198,000		0.2
7.875%, 10/15/18 ²		130		137,150		0.1


Description	Par (000)		Value		Percent of Net Assets*

OIL, GAS & CONSUMABLE FUELS (continued)
Venoco, Inc., Private Placement, 8.875%, 02/15/19 ²	$	225	$	225,000		0.2	%
W&T Offshore, Inc., Private Placement, Sr Nt, 8.250%, 06/15/14 ²		650		672,750		0.6
Western Refining, Inc., Private Placement, VAR, 10.750%, 06/15/14 ²		225		243,000		0.2
11.250%, 06/15/17 ²		100		113,000		0.1

				9,988,665		8.6

Total Energy				12,689,778		10.9

FINANCIALS — 11.7%
COMMERCIAL BANKS — 1.3%
Bank of America Corp., VAR, 8.125%, 05/15/18 ¹⁴		160		172,059		0.2
BankAmerica Capital II, Nt, 8.000%, 12/15/26		30		30,675		0.0	¹²
BankAmerica Institutional Capital B, Private Placement, Class B, 7.700%, 12/31/26 ²		250		254,375		0.2
Barclays Bank plc, Private Placement, (United Kingdom), VAR, 7.434%, 12/15/17 ^2,14		600		600,000		0.5
Wachovia Capital Trust III, VAR, 5.570%, 05/02/11 ¹⁴		545		500,038		0.4

				1,557,147		1.3
CONSUMER FINANCE — 2.0%
Ally Financial, Inc., 8.000%, 11/01/31		842		917,780		0.8
Ford Motor Credit Co. LLC, Nt, 8.000%, 12/15/16 ¹⁰		700		794,627		0.7
Springleaf Finance Corp., 6.900%, 12/15/17		700		639,625		0.5

				2,352,032		2.0
DIVERSIFIED FINANCIAL SERVICES — 3.7%
ACE Cash Express, Inc., Private Placement, 11.000%, 02/01/19 ²		495		503,663		0.4
Aircastle Ltd., Sr Nt, (Bermuda), 9.750%, 08/01/18		75		83,063		0.1
CIT Group, Inc., Nt, 7.000%, 05/01/15		750		756,562		0.6
CIT Group, Inc., Private Placement, 6.625%, 04/01/18 ²		180		182,631		0.1

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

DIVERSIFIED FINANCIAL SERVICES (continued)
CNG Holdings, Inc., Private Placement,
12.250%, 02/15/15 ²	$	140	$	156,100		0.1	%
13.750%, 08/15/15 ²		250		279,375		0.3
Deluxe Corp., Private Placement, 7.000%, 03/15/19 ²		125		124,375		0.1
ILFC E-Capital Trust I, Private Placement, VAR, 5.970%, 12/21/65 ²		950		790,600		0.7
ILFC E-Capital Trust II, Private Placement, VAR, 6.250%, 12/21/65 ²		520		436,800		0.4
International Lease Finance Corp., 8.875%, 09/01/17		300		338,250		0.3
Northern Tier Energy LLC and Northern Tier Finance Corp., Private Placement, 10.500%, 12/01/17 ²		100		113,250		0.1
SquareTwo Financial Corp., Private Placement, 11.625%, 04/01/17 ²		425		431,375		0.4
Tops Holding Corp./Tops Markets LLC, 10.125%, 10/15/15		115		123,625		0.1

				4,319,669		3.7
INSURANCE — 3.7%
American International Group, Inc., VAR, 8.175%, 05/15/58		450		484,313		0.4
Genworth Financial, Inc., VAR, 6.150%, 11/15/66		355		280,450		0.2
HUB International Holdings, Inc., Private Placement,
9.000%, 12/15/14 ²		250		261,250		0.2
10.250%, 06/15/15 ^2,10		550		569,250		0.5
Liberty Mutual Group, Inc., Private Placement, VAR, 10.750%, 06/15/58 ²		1,495		1,943,500		1.7
Nationwide Mutual Insurance Co., Private Placement, 9.375%, 08/15/39 ²		175		212,818		0.2
USI Holdings Corp., Private Placement, Sr Sub Nt, 9.750%, 05/15/15 ^2,10		592		606,800		0.5

				4,358,381		3.7


Description	Par (000)		Value		Percent of Net Assets*

REAL ESTATE INVESTMENT TRUSTS (REITs) — 0.9%
Aviv Healthcare Properties LP, Private Placement, Sr Nt, 7.750%, 02/15/19 ²	$	220	$	229,350		0.2	%
CB Richard Ellis Services, Inc., 6.625%, 10/15/20		150		154,500		0.1
CNL Income Properties, Inc., Private Placement, Sr Nt, 7.250%, 04/15/19 ²		330		327,522		0.3
DuPont Fabros Technology LP, Nt, 8.500%, 12/15/17		105		115,631		0.1
First Industrial LP, Sr Nt, 6.420%, 06/01/14		180		183,637		0.2

				1,010,640		0.9
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.1%
Kennedy-Wilson, Inc., Private Placement, 8.750%, 04/01/19 ²		90		89,367		0.1

Total Financials				13,687,236		11.7

HEALTH CARE — 4.2%
HEALTH CARE EQUIPMENT & SUPPLIES — 0.0% ¹²
DJO Finance LLC/DJO Finance Corp., Sr Nt, 10.875%, 11/15/14		50		54,500		0.0	¹²

HEALTH CARE PROVIDERS & SERVICES — 2.1%
Capella Healthcare, Inc., Private Placement, 9.250%, 07/01/17 ²		165		175,725		0.2
HCA, Inc., 5.750%, 03/15/14 ¹⁰		195		198,656		0.2
HCA, Inc., Sec’d Nt, 9.250%, 11/15/16 ¹⁰		500		538,125		0.5
Multiplan, Inc., Private Placement, Nt, 9.875%, 09/01/18 ²		450		481,500		0.4
OnCure Holdings, Inc., 11.750%, 05/15/17		395		395,988		0.3
Radiation Therapy Services, Inc., 9.875%, 04/15/17		225		229,500		0.2
Tenet Healthcare Corp., 8.875%, 07/01/19 ¹⁰		250		285,000		0.2
Vanguard Health Holding Co. II LLC/Vanguard Holding Co. II, Inc., Private Placement, 7.750%, 02/01/19 ²		100		101,250		0.1

				2,405,744		2.1

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

PHARMACEUTICALS — 2.1%
Catalent Pharma Solutions, Inc., Nt, PIK, 9.500%, 04/15/15	$	402	$	412,914		0.3	%
Celtic Pharma Phinco B.V., (Bermuda), PIK, 17.000%, 06/15/12 ^3,9		1,865		932,291		0.8
Elan Finance plc/Elan Finance Corp., Private Placement, (Ireland),
8.750%, 10/15/16 ²		500		528,750		0.5
8.750%, 10/15/16 ²		500		527,500		0.4
Giant Funding Corp., 8.250%, 02/01/18 ²		100		102,625		0.1

				2,504,080		2.1

Total Health Care				4,964,324		4.2

INDUSTRIALS — 12.4%
AEROSPACE & DEFENSE — 0.8%
Acquisition Co. Lanza Parent, Private Placement, 10.000%, 06/01/17 ²		160		176,400		0.2
Colt Defense LLC/Colt Finance Corp., Private Placement, 8.750%, 11/15/17 ²		72		58,680		0.0	¹²
CPI International Acquisition, Inc., Private Placement, 8.000%, 02/15/18 ²		125		125,625		0.1
Huntington Ingalls Industries, Inc., Private Placement, 6.875%, 03/15/18 ²		180		187,875		0.1
7.125%, 03/15/21 ²		90		93,825		0.1
Kratos Defense & Security Solutions, Inc., 10.000%, 06/01/17		210		231,525		0.2
Triumph Group, Inc., 8.625%, 07/15/18		80		88,200		0.1

				962,130		0.8
AIR FREIGHT & LOGISTICS — 0.1%
AMGH Merger Sub, Inc., Private Placement, 9.250%, 11/01/18 ²		72		77,310		0.1

AIRLINES — 1.5%
American Airlines Pass Through Trust 2001-01, Series 01-1, 7.377%, 05/23/19		612		587,813		0.5
Continental Airlines 2005-ERJ1 Pass Through Trust, Series ERJ1, 9.798%, 04/01/21 ¹⁰		734		774,117		0.7


Description	Par (000)		Value		Percent of Net Assets*

AIRLINES (continued)
UAL 2007-1 Pass Through Trust, Private Placement, VAR, 2.707%, 07/02/14 ²	$	104	$	91,270		0.1	%
7.336%, 07/02/19 ²		82		78,013		0.0	¹²
UAL 2009-2B Pass Through Trust, Private Placement, 12.000%, 01/15/16 ²		183		203,309		0.2

				1,734,522		1.5
BUILDING PRODUCTS — 0.1%
Associated Materials LLC, Private Placement, 9.125%, 11/01/17 ²		75		80,250		0.1

COMMERCIAL SERVICES & SUPPLIES — 2.1%
Cenveo Corp., Nt, 8.875%, 02/01/18		300		300,750		0.2
Cenveo Corp., Private Placement, 10.500%, 08/15/16 ²		500		502,500		0.4
Garda World Security Corp., Private Placement, (Canada), 9.750%, 03/15/17 ²		180		193,950		0.2
Geo Group, Inc. (The), Private Placement, Nt, 6.625%, 02/15/21 ²		102		100,980		0.1
Harland Clarke Holdings Corp., VAR, 6.000%, 05/15/15 ¹⁰		447		402,859		0.4
9.500%, 05/15/15		40		39,550		0.0	¹²
Iron Mountain, Inc., 8.375%, 08/15/21		250		270,625		0.2
Liberty Tire Recycling, Private Placement, Nt, 11.000%, 10/01/16 ²		275		308,687		0.3
Mobile Mini, Inc., Private Placement, 7.875%, 12/01/20 ²		200		212,000		0.2
Quebecor World Capital Escrow Corp., (Canada), 6.125%, 11/15/13 ^1,4		1,415		84,900		0.1
6.500%, 08/01/27 ^1,4		810		48,600		0.0	¹²
9.750%, 01/15/15 ^1,4		585		35,100		0.0	¹²

				2,500,501		2.1
CONSTRUCTION & ENGINEERING — 1.5%
Great Lakes Dredge & Dock Corp., Private Placement, 7.375%, 02/01/19 ²		50		50,625		0.0	¹²
New Enterprise Stone & Lime Co., Private Placement, Nt, 11.000%, 09/01/18 ²		750		759,375		0.7
RSC Equipment Rental, Inc./RSC Holdings III LLC, Private Placement, 8.250%, 02/01/21 ²		160		166,400		0.1

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

CONSTRUCTION & ENGINEERING (continued)
RSC Equipment Rental, Inc./RSC Holdings III LLC, Sr Nt, 9.500%, 12/01/14 ¹⁰	$	271	$	283,873		0.3	%
Tutor Perini Corp., Private Placement, 7.625%, 11/01/18 ²		150		154,500		0.1
United Rentals North America, Inc., 8.375%, 09/15/20		200		209,000		0.2
10.875%, 06/15/16		80		92,400		0.1

				1,716,173		1.5
ELECTRICAL EQUIPMENT — 0.4%
Belden, Inc., Sr Nt, 9.250%, 06/15/19		125		138,594		0.1
General Cable Corp., VAR, 2.678%, 04/01/15		250		245,625		0.2
International Wire Group, Inc., Private Placement, 9.750%, 04/15/15 ²		100		106,125		0.1

				490,344		0.4
ENVIRONMENTAL SERVICES — 0.1%
Casella Waste Systems, Inc., Private Placement, Nt, 7.750%, 02/15/19 ²		90		90,000		0.1

INDUSTRIAL CONGLOMERATES — 0.4%
JB Poindexter & Co., Inc., Co. Guar, 8.750%, 03/15/14 ¹⁰		434		438,340		0.4

MACHINERY — 0.8%
Boart Longyear Management Pty Ltd., Private Placement, Co Guar, (Australia), 7.000%, 04/01/21 ²		60		61,500		0.1
Columbus McKinnon Corp., Private Placement, Co Guar, 7.875%, 02/01/19 ²		120		123,150		0.1
CPM Holdings, Inc., Private Placement, Sr Nt, 10.875%, 09/01/14 ²		55		59,400		0.0	¹²
Thermadyne Holdings Corp., Private Placement, 9.000%, 12/15/17 ²		525		554,531		0.5
Titan International, Inc., Private Placement, 7.875%, 10/01/17 ²		125		132,500		0.1

				931,081		0.8


Description	Par (000)		Value		Percent of Net Assets*

MARINE — 2.4%
ACL I Corp., Private Placement, PIK, 10.625%, 02/15/16 ²	$	500	$	510,000		0.4	%
American Petroleum Tankers LLC/AP Tankers Co., Private Placement, 10.250%, 05/01/15 ²		270		284,175		0.2
Bluewater Holding BV, Private Placement, Nt, (Netherlands), VAR, 3.303%, 07/17/14 ²		400		340,500		0.3
CMA CGM S.A., Private Placement, (France), 7.250%, 02/01/13 ²		200		199,500		0.2
Commercial Barge Line Co., Sr Nt, 12.500%, 07/15/17		350		403,375		0.3
General Maritime Corp., Sr Nt, 12.000%, 11/15/17		364		350,350		0.3
Navios Maritime Holdings, Inc./Navios Maritime Finance U.S., Inc., 8.875%, 11/01/17		377		408,574		0.4
Ultrapetrol Bahamas Ltd., 1st Mtg, (Bahamas), 9.000%, 11/24/14 ¹⁰		310		316,975		0.3

				2,813,449		2.4
ROAD & RAIL — 2.2%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 8.250%, 01/15/19		150		157,125		0.1
9.625%, 03/15/18		290		320,450		0.3
Avis Budget Car Rental LLC/Avis Budget Finance, Inc., Nt, 7.750%, 05/15/16		200		206,250		0.2
Kansas City Southern de Mexico S.A. de C.V., Private Placement, (Mexico), 6.625%, 12/15/20 ²		113		115,260		0.1
Kansas City Southern Railway, Sr Nt, 8.000%, 06/01/15		250		271,250		0.2
Quality Distribution LLC/QD Capital Corp., PIK, 11.750%, 11/01/13 ^3,9		65		65,389		0.0	¹²
Quality Distribution LLC/QD Capital Corp., Private Placement, 9.875%, 11/01/18 ²		1,100		1,141,250		1.0
RailAmerica, Inc., 9.250%, 07/01/17		300		331,875		0.3

				2,608,849		2.2

Total Industrials				14,442,949		12.4

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

INFORMATION TECHNOLOGY — 6.1%
COMMUNICATIONS EQUIPMENT — 0.9%
Avaya, Inc., Private Placement, 7.000%, 04/01/19 ²	$	260	$	253,500		0.2	%
Avaya, Inc., Sr Nt, 9.750%, 11/01/15		500		508,125		0.4
Brightstar Corp., Private Placement, 9.500%, 12/01/16 ²		260		279,175		0.3

				1,040,800		0.9
COMPUTERS & PERIPHERALS — 0.9%
Seagate HDD Cayman, Private Placement, Co Guar, (Cayman Islands), 7.750%, 12/15/18 ²		450		465,750		0.4
Seagate HDD Cayman, Private Placement, Sr Nt, (Cayman Islands), 6.875%, 05/01/20 ²		170		169,575		0.2
Stratus Technologies, Inc., Private Placement, Sr Sec’d Nt, 12.000%, 03/29/15 ²		380		350,075		0.3

				985,400		0.9
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.3%
Intcomex, Inc., 13.250%, 12/15/14		218		229,445		0.2
Kemet Corp., 10.500%, 05/01/18		375		422,812		0.4
Sanmina-SCI Corp., Private Placement, Sr Nt, VAR, 3.059%, 06/15/14 ²		200		197,000		0.2
Smart Modular Technologies WWH, Inc., Sr Nt, (Cayman Islands), VAR, 5.803%, 04/01/12 ^3,9		423		420,885		0.3
Viasystems, Inc., Private Placement, 12.000%, 01/15/15 ²		225		254,250		0.2

				1,524,392		1.3
INTERNET SOFTWARE & SERVICES — 0.2%
eAccess Ltd., Private Placement, (Japan), 8.250%, 04/01/18 ²		75		75,000		0.1
Equinix, Inc., Sub Nt, 8.125%, 03/01/18		185		200,263		0.1

				275,263		0.2
IT SERVICES — 1.6%
Compucom Systems, Inc., Private Placement, 12.500%, 10/01/15 ²		225		243,281		0.2
First Data Corp., 9.875%, 09/24/15		19		19,475		0.0	¹²
First Data Corp., Private Placement, 8.250%, 01/15/21 ²		80		79,800		0.1


Description	Par (000)		Value		Percent of Net Assets*

IT SERVICES (continued)
First Data Corp., Private Placement, Sr Nt, 12.625%, 01/15/21 ²	$	378	$	410,130		0.4	%
Sitel LLC/Sitel Finance Corp., Private Placement, Sr Nt, 11.500%, 04/01/18 ²		850		791,563		0.7
Stream Global Services, Inc., Sr Nt, 11.250%, 10/01/14		100		107,000		0.1
Unisys Corp., Private Placement, 14.250%, 09/15/15 ²		130		155,675		0.1

				1,806,924		1.6
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.2%
Amkor Technology, Inc., 7.375%, 05/01/18		170		175,950		0.1
Freescale Semiconductor, Inc., Private Placement, Nt, 9.250%, 04/15/18 ²		105		114,975		0.1
10.750%, 08/01/20 ²		65		72,963		0.1
MEMC Electronic Materials, Inc., Private Placement, 7.750%, 04/01/19 ²		135		138,206		0.1
NXP B.V./NXP Funding LLC, Private Placement, (Netherlands), 9.750%, 08/01/18 ²		100		112,000		0.1
NXP B.V./NXP Funding LLC, Sr Nt, (Netherlands), VAR, 3.053%, 10/15/13		400		396,500		0.3
7.875%, 10/15/14		415		431,081		0.4

				1,441,675		1.2

Total Information Technology				7,074,454		6.1

MATERIALS — 9.1%
CHEMICALS — 1.8%
CF Industries, Inc., 7.125%, 05/01/20		90		102,150		0.1
Chemtura Corp., Private Placement, 7.875%, 09/01/18 ²		150		158,625		0.2
Lyondell Chemical Co., 11.000%, 05/01/18		967		1,085,050		0.9
Lyondell Chemical Co., Private Placement, 8.000%, 11/01/17 ²		292		321,930		0.3
Nexeo Solutions LLC/Nexeo Solutions Finance Corp., Private Placement, Nt, 8.375%, 03/01/18 ²		35		35,700		0.0	¹²
Omnova Solutions, Inc., Private Placement, 7.875%, 11/01/18 ²		40		40,500		0.0	¹²
PolyOne Corp., 7.375%, 09/15/20		280		294,700		0.3

				2,038,655		1.8
CONSTRUCTION MATERIALS — 0.8%
Cemex S.A.B. de C.V., Private Placement, (Mexico), 9.000%, 01/11/18 ²		650		681,687		0.6

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

CONSTRUCTION MATERIALS (continued)
Texas Industries, Inc., 9.250%, 08/15/20	$	200	$	216,000		0.2	%
U.S. Concrete, Inc., Private Placement Sec’d Nt, 9.500%, 08/31/15 ²		46		58,420		0.0	¹²

				956,107		0.8
CONTAINERS & PACKAGING — 2.3%
Ardagh Packaging Finance plc, Private Placement, Sr Sub Nt, (Ireland), 9.125%, 10/15/20 ²		200		216,500		0.2
Berry Plastics Corp., 9.500%, 05/15/18		370		368,150		0.3
Berry Plastics Corp., Co Guar, 8.250%, 11/15/15		165		175,106		0.1
Berry Plastics Corp., Private Placement, 9.750%, 01/15/21 ²		300		297,000		0.3
Constar International, Inc., Co Guar, VAR, 0.000%, 02/15/12 ^1,4		950		441,750		0.4
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu, Private Placement, Nt, 8.250%, 02/15/21 ²		300		297,000		0.3
8.500%, 05/15/18 ²		400		405,000		0.3
9.000%, 04/15/19 ²		1250		129,375		0.1
Viskase Cos., Inc., Private Placement, Sr Nt, 9.875%, 01/15/18 ²		350		377,125		0.3

				2,707,006		2.3
METALS & MINING — 1.8%
Constellation Enterprises LLC, Private Placement, 10.625%, 02/01/16 ²		275		283,250		0.2
Edgen Murray Corp., Sr Nt, 12.250%, 01/15/15		250		245,312		0.2
FMG Resources August 2006 Pty Ltd., Private Placement, (Australia), 7.000%, 11/01/15 ²		200		207,500		0.2
JMC Steel Group, Private Placement, 8.250%, 03/15/18 ²		100		102,250		0.1
Murray Energy Corp., Private Placement, 10.250%, 10/15/15 ²		330		354,750		0.3
Noranda Aluminum Acquisition Corp., Sr Nt, PIK, 5.193%, 05/15/15		475		457,026		0.4
Severstal Columbus LLC, 10.250%, 02/15/18		100		110,500		0.1


Description	Par (000)		Value		Percent of Net Assets*

METALS & MINING (continued)
Wolverine Tube, Inc., Sr Nt, 15.000%, 03/31/12 ^1,4	$	983	$	344,062		0.3	%

				2,104,650		1.8
PAPER & FOREST PRODUCTS — 2.4%
AbitibiBowater, Inc., Private Placement, 10.250%, 10/15/18 ²		330		364,650		0.3
Abitibi-Consolidated Co. of Canada, Escrow, (Canada), 6.000%, 06/20/13 ^1,4		1,331		14,974		0.0	¹²
7.500%, 04/01/28 ^1,4		287		3,228		0.0	¹²
Abitibi-Consolidated Co. of Canada, Sr Nt, Escrow, (Canada), 7.500%, 06/15/11 ^1,4		479		5,389		0.0	¹²
8.375%, 04/01/15 ^1,4		2,485		27,956		0.0	¹²
8.850%, 08/01/30 ^1,4		102		1,148		0.0	¹²
Appleton Papers, Inc., Private Placement, Sr Sec’d Nt, 10.500%, 06/15/15 ²		250		263,125		0.2
Bowater Canada Finance Corp., Nt, (Canada), 7.950%, 11/15/11 ^1,4		500		152,500		0.2
NewPage Corp., Sr Nt, 10.000%, 05/01/12		500		331,250		0.3
NewPage Corp., Sr Sec’d Nt, 11.375%, 12/31/14		1,500		1,501,875		1.3
Smurfit-Stone Container Corp., Sr Nt, 8.000%, 03/15/17 ^1,3,4,9		1,229		90,639		0.1
Smurfit-Stone Container Enterprises, Inc., 8.375%, 07/01/12 ^1,3,4,9		448		33,040		0.0	¹²

				2,789,774		2.4

Total Materials				10,596,192		9.1

TELECOMMUNICATION SERVICES — 8.3%
DIVERSIFIED TELECOMMUNICATION SERVICES — 4.7%
Cincinnati Bell, Inc., 8.750%, 03/15/18		120		113,250		0.1
Clearwire Communications LLC/Clearwire Finance, Inc., Private Placement,
12.000%, 12/01/15 ²		1,500		1,620,000		1.4
12.000%, 12/01/17 ²		65		69,469		0.0	¹²
Cogent Communications Group, Inc., Private Placement, 8.375%, 02/15/18 ²		210		216,562		0.2

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

DIVERSIFIED TELECOMMUNICATION SERVICES (continued)
Frontier Communications Corp., Sr Nt,
8.250%, 05/01/14	$	50	$	55,500		0.1	%
8.250%, 04/15/17		115		124,200		0.1
8.500%, 04/15/20		115		124,631		0.1
8.750%, 04/15/22		110		119,075		0.1
Global Crossing Ltd., (Bermuda), 12.000%, 09/15/15		35		39,900		0.0	¹²
Level 3 Financing, Inc., 10.000%, 02/01/18		105		105,131		0.1
Level 3 Financing, Inc., Co. Guar, 9.250%, 11/01/14 ¹⁰		1,000		1,022,500		0.9
Level 3 Financing, Inc., Private Placement, Sr Nt, 9.375%, 04/01/19 ²		295		285,413		0.2
PAETEC Holding Corp., Sr Sec’d Nt, 8.875%, 06/30/17		200		215,500		0.2
Qwest Communications International, Inc., Sr Sec’d Nt, 7.125%, 04/01/18		200		215,750		0.2
Qwest Corp., Sr Nt, 7.625%, 06/15/15 ¹⁰		515		592,250		0.5
Windstream Corp., 7.875%, 11/01/17		320		343,200		0.3
8.125%, 09/01/18		250		266,875		0.2

				5,529,206		4.7
WIRELESS TELECOMMUNICATION SERVICES — 3.6%
Cricket Communications, Inc., 7.750%, 05/15/16		180		191,250		0.2
7.750%, 10/15/20		375		377,813		0.3
MetroPCS Wireless, Inc., 7.875%, 09/01/18		145		155,150		0.1
Nextel Communications, Inc., Series D, 7.375%, 08/01/15 ¹⁰		1,025		1,028,844		0.9
NII Capital Corp., Sr Nt, 8.875%, 12/15/19		315		346,500		0.3
10.000%, 08/15/16		135		153,900		0.1
Sprint Nextel Corp., Nt, 6.000%, 12/01/16 ¹⁰		1,400		1,405,250		1.2
Wind Acquisition Finance S.A., Private Placement, (Luxembourg), 7.250%, 02/15/18 ²		200		209,000		0.2
Wind Acquisition Holdings Finance S.A., Private Placement, Sr Sec’d Nt, (Luxembourg), PIK, 12.250%, 07/15/17 ²		233		282,053		0.3

				4,149,760		3.6

Total Telecommunication Services				9,678,966		8.3


Description	Par (000)		Value		Percent of Net Assets*

UTILITIES — 6.5%
GAS UTILITIES — 0.1%
Genesis Energy LP/Genesis Energy Finance Corp., Private Placement, 7.875%, 12/15/18 ²	$	160	$	161,600		0.1	%

INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 5.7%
Calpine Construction Finance Co. LP and CCFC Finance Corp., Private Placement, 8.000%, 06/01/16 ²		200		218,000		0.2
Calpine Corp., Private Placement, Sr Nt, 7.250%, 10/15/17 ²		354		368,160		0.3
Calpine Generating Co. LLC, Sec’d Nt, 0.000%, 04/01/11 ^1,4		1,000		127,500		0.1
Dynegy Holdings, Inc., Sr Nt, 7.750%, 06/01/19		750		582,188		0.5
Dynegy Holdings, Inc., Sr Unsecd Nt, 7.125%, 05/15/18		500		367,500		0.3
Dynegy Roseton/Danskammer Pass Through Trust, Sr Unsecd Nt, Series B, 7.670%, 11/08/16		1,000		945,000		0.8
Edison Mission Energy, 7.200%, 05/15/19		500		390,000		0.3
Edison Mission Energy, Sr Nt, 7.750%, 06/15/16		1,000		850,000		0.7
GenOn Americas Generation LLC, Sr Nt, 8.500%, 10/01/21		500		520,000		0.5
GenOn Energy, Inc., Private Placement, 9.875%, 10/15/20 ²		290		303,050		0.3
Homer City Funding LLC, 8.137%, 10/01/19		104		94,503		0.1
Midwest Generation LLC, Series B, 8.560%, 01/02/16		221		225,228		0.2
NRG Energy, Inc., Sr Nt, 7.375%, 01/15/17 ¹⁰		1,375		1,433,437		1.2
Texas Competitive Electric Holdings Co. LLC, Sr Nt, Series A, 10.250%, 11/01/15		350		204,750		0.2

				6,629,316		5.7
MULTI-UTILITIES — 0.7%
Energy Future Holdings Corp., 10.875%, 11/01/17		89		74,315		0.1
Energy Future Intermediate Holding Co. LLC/EFIH Finance, Inc., 10.000%, 12/01/20		730		773,563		0.6

				847,878		0.7

Total Utilities				7,638,794		6.5

Total Corporate Bonds
(Cost $121,244,933)				124,332,467		106.6

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

LOAN PARTICIPATIONS & ASSIGNMENTS — 20.7%
CONSUMER DISCRETIONARY — 8.1%
AUTOMOBILES — 0.5%
Ford Motor Co., Tranche B1 Term Loan, VAR, 3.010%, 12/15/13	$	364	$	363,377		0.3	%
VAR, 3.010%, 12/15/13		158		158,224		0.2
VAR, 3.010%, 12/15/13		28		27,689		0.0	¹²

				549,290		0.5
GAMING — 1.8%
Boyd Gaming Corp., 1st Lien Term Loan, VAR, 3.746%, 12/17/15		365		357,457		0.3
Caesars Entertainment Operating Co., Inc., Term B-2 Loan, VAR, 3.303%, 01/28/15		1,006		934,524		0.8
CCM Merger, Inc., Term Loan, VAR, 7.000%, 03/01/17		400		404,668		0.4
Isle of Capri Casinos, Inc., Term Loan B, VAR, 4.750%, 03/24/17		100		100,458		0.1
Sugarhouse HSP Gaming, Term Loan B, VAR, 11.250%, 09/23/14		238		240,300		0.2
VAR, 11.250%, 09/23/14		22		22,527		0.0	¹²
VAR, 11.250%, 09/23/14		2		1,912		0.0	¹²

				2,061,846		1.8
HOTELS, RESTAURANTS & LEISURE — 0.3%
Outback Steakhouse, Inc., Prefunded RC Commitment,
VAR, 0.130%, 06/14/13		1		1,144		0.0	¹²
VAR, 4.500%, 06/14/13		4		4,072		0.0	¹²
Outback Steakhouse, Inc., Term Loan B, VAR, 2.563%, 06/14/14		390		378,359		0.3

				383,575		0.3
MEDIA — 4.6%
Bresnan Communications, Term Loan B, VAR, 4.500%, 12/14/17		150		150,310		0.1
Cengage Learning Acquisitions, Term Loan, VAR, 2.500%, 07/03/14		739		707,357		0.6
Clear Channel Communications, Inc., Term Loan B, VAR, 3.896%, 01/29/16		572		502,987		0.4


Description	Par (000)		Value		Percent of Net Assets*

MEDIA (continued)
Entercom Radio LLC, Term Loan A,
VAR, 1.373%, 06/30/12	$	734	$	718,896		0.6	%
VAR, 3.375%, 06/30/12		29		28,192		0.0	¹²
High Plains Broadcasting Operating Co. LLC, Term Loan, VAR, 9.000%, 09/14/16		190		190,649		0.2
Newport Television LLC, Term Loan, VAR, 9.000%, 09/14/16		694		695,708		0.6
Newsday, Fixed Rate Term Loan, VAR, 10.500%, 08/01/13		250		264,532		0.2
R.H. Donnelley, Inc., Exit Term Loan, VAR, 9.000%, 10/24/14		181		140,924		0.1
VAR, 9.000%, 10/24/14		184		143,504		0.1
VAR, 9.000%, 10/24/14		49		37,920		0.1
Radio One, 1st Lien Term Loan B, VAR, 7.500%, 03/25/16		250		252,813		0.2
Univision Communications, Inc., Initial Term Loan, VAR, 2.246%, 09/29/14		1,311		1,280,080		1.1
Vertis, Inc., 1st Lien Term Loan, VAR, 11.750%, 12/20/15		296		291,806		0.3

				5,405,678		4.6
SPECIALTY RETAIL — 0.9%
Claire’s Stores, Term Loan B,
VAR, 3.054%, 05/29/14		142		134,674		0.1
VAR, 3.057%, 05/29/14		676		642,563		0.6
VAR, 5.000%, 05/29/14		3		2,693		0.0	¹²
J. Crew, 1st Lien Term Loan,
VAR, 4.750%, 03/07/18		168		167,739		0.1
VAR, 4.750%, 03/07/18		56		55,913		0.1
VAR, 4.750%, 03/07/18		1		560		0.0	¹²

				1,004,142		0.9

Total Consumer Discretionary				9,404,531		8.1

CONSUMER STAPLES — 0.4%
Food & Staples Retailing — 0.4%
Rite Aid Corp., 1st Lien Term Loan TL 5, VAR, 4.500%, 02/28/18		486		481,502		0.4

ENERGY — 0.2%
OIL, GAS & CONSUMABLE FUELS — 0.2%
Big West Oil, Term Loan B, VAR, 7.000%, 03/31/16		137		138,324		0.1

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

OIL, GAS & CONSUMABLE FUELS (continued)
Western Refinancing, Inc., Term Loan B, VAR, 7.500%, 03/15/17	$	100	$	100,550		0.1	%

Total Energy				238,874		0.2

FINANCIALS — 2.9%
DIVERSIFIED FINANCIAL SERVICES — 2.0%
Capmark Financial Group, U.S. Term Loan, VAR, 5.250%, 03/23/11 ^1,4		2,285		1,094,836		0.9
Capmark Financial Group, Unsecured Bridge Loan, VAR, 5.250%, 03/23/11 ^1,4		175		82,469		0.1
Checksmart Financial Co., Term Loan B, VAR, 4.750%, 05/01/12 ^3,9		200		178,500		0.2
CIT Group, Inc., Tranche 3 Term Loan,
VAR, 6.250%, 08/11/15		126		128,029		0.1
VAR, 6.250%, 08/11/15		125		127,338		0.1
VAR, 6.250%, 08/11/15		54		54,401		0.1
VAR, 6.250%, 08/11/15		49		49,745		0.1
VAR, 6.250%, 08/11/15		41		41,900		0.0	¹²
VAR, 6.250%, 08/11/15		33		33,329		0.0	¹²
VAR, 6.250%, 08/11/15		30		30,347		0.0	¹²
VAR, 6.250%, 08/11/15		30		30,347		0.0	¹²
VAR, 6.250%, 08/11/15		16		16,665		0.0	¹²
Clarke American Corp., Term Loan B,
VAR, 2.746%, 06/30/14		97		92,611		0.1
VAR, 2.746%, 06/30/14		71		67,474		0.1
VAR, 2.807%, 06/30/14		101		96,315		0.1
VAR, 2.807%, 06/30/14		59		55,964		0.0	¹²
VAR, 2.807%, 06/30/14		154		146,060		0.1

				2,326,330		2.0
REAL ESTATE INVESTMENT TRUSTS (REITs) — 0.9%
CB Richard Ellis, Delayed Draw Term Loan C, VAR, 3.811%, 03/04/18		232		231,202		0.2
CB Richard Ellis, Delayed Draw Term Loan D, VAR, 3.811%, 09/04/19		290		289,275		0.3
I-Star, Term Loan A-1, VAR, 5.000%, 06/28/13		475		470,450		0.4

				990,927		0.9

Total Financials				3,317,257		2.9


Description	Par (000)		Value		Percent of Net Assets*

HEALTH CARE — 0.2%
HEALTH CARE PROVIDERS & SERVICES — 0.1%
Inventive Health, Term B-1 Loan, VAR, 4.750%, 08/04/16	$	33	$	33,375		0.0	% ¹²
Inventive Health, Term B-2 Loan, VAR, 4.750%, 08/04/16		67		66,916		0.1

				100,291		0.1
PHARMACEUTICALS — 0.1%
Axcan Intermediate Holdings, Inc., Term Loan,
VAR, 5.500%, 02/11/17		65		65,255		0.1
VAR, 5.500%, 02/11/17		11		11,156		0.0	¹²
VAR, 5.500%, 02/11/17		38		38,206		0.0	¹²

				114,617		0.1

Total Health Care				214,908		0.2

INDUSTRIALS — 2.8%
AIRLINES — 0.8%
Delta Air Lines, Inc., 1st Lien Credit Linked Deposit,
VAR, 0.094%, 04/30/12		72		71,270		0.1
VAR, 2.256%, 04/30/12		408		406,071		0.3
Delta Air Lines, Inc., Term Loan, VAR, 4.250%, 03/05/16		500		495,000		0.4

				972,341		0.8
BUILDING PRODUCTS — 0.8%
Jacuzzi Brands, Inc., 1st Lien Synthetic Credit Facility, VAR, 0.207%, 02/07/14		81		69,057		0.1
Jacuzzi Brands, Inc., 1st Lien Term Loan B, VAR, 2.554%, 02/07/14		890		757,192		0.6
Jacuzzi Luxco S.A.R.L., New Term Loan, VAR, 6.307%, 11/15/13 ^3,9		124		124,268		0.1

				950,517		0.8
COMMERCIAL SERVICES & SUPPLIES — 0.2%
Cenveo Corp., Term Loan, VAR, 6.250%, 12/21/16		200		200,747		0.2
INDUSTRIAL CONGLOMERATES — 1.0%
BOC Edwards, Extended Term Loan, VAR, 5.500%, 05/31/16		1,181		1,176,681		1.0

Total Industrials				3,300,286		2.8

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

INFORMATION TECHNOLOGY — 2.4%
IT SERVICES — 2.1%
Compucom Systems, Inc., Term Loan, VAR, 3.750%, 08/23/14 ^3,9	$	772	$	751,118		0.6	%
First Data Corp., Initial Tranche B-1 Term Loan, VAR, 3.002%, 09/24/14		373		356,762		0.3
First Data Corp., Initial Tranche B-3 Term Loan, VAR, 3.002%, 09/24/14		1,399		1,339,156		1.2

				2,447,036		2.1
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.3%
Freescale Semiconductor, Inc., Extended Maturity Term Loan, VAR, 4.511%, 12/01/16		390		387,408		0.3

Total Information Technology				2,834,444		2.4

MATERIALS — 1.8%
CHEMICALS — 1.7%
AZ Chem US, Inc. (Arizona Chemical), Term Loan, VAR, 4.750%, 11/19/16		120		120,189		0.1
Cristal Inorganic Chemicals (Millenium), 1st Lien Term Loan, VAR, 2.557%, 05/15/14		879		871,850		0.8
Cristal Inorganic Chemicals (Millenium), 2nd Lien Term Loan, VAR, 6.057%, 11/14/14 ^3,9		500		498,750		0.4
Nexeo Solutions, Term Loan, VAR, 5.000%, 07/31/17		100		100,000		0.1
Styron, 1st Lien Term Loan, VAR, 6.000%, 08/02/17		249		250,761		0.2
Univar Inc., Term Loan B, VAR, 5.000%, 06/01/17		165		165,144		0.1

				2,006,694		1.7
CONTAINERS & PACKAGING — 0.1%
Reynolds Group Holdings, U.S. Term Loan,
VAR, 4.250%, 02/14/18		52		52,188		0.1
VAR, 4.250%, 02/14/18		27		26,995		0.0	¹²
VAR, 4.250%, 02/14/18		46		46,342		0.0	¹²

				125,525		0.1

Total Materials				2,132,219		1.8


Description	Par (000)		Value		Percent of Net Assets*

TELECOMMUNICATION SERVICES — 0.5%
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.5%
Level 3 Communications, Tranche A Term Loan,
VAR, 2.553%, 03/13/14	$	71	$	69,245		0.1	%
VAR, 2.553%, 03/13/14		179		173,113		0.1
Level 3 Communications, Tranche B Term Loan, VAR, 11.500%, 03/13/14		250		266,875		0.3

Total Telecommunication Services				509,233		0.5

UTILITIES — 1.4%
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 1.4%
Texas Competitive Electric Holdings Co. LLC, Initial Tranche B-2 Term Loan,
VAR, 3.746%, 10/10/14		35		29,461		0.0	¹²
VAR, 3.759%, 10/10/14		386		324,825		0.3
VAR, 3.803%, 10/10/14		544		457,983		0.4
Texas Competitive Electric Holdings Co. LLC, Initial Tranche B-3 Term Loan,
VAR, 3.746%, 10/10/14		9		7,514		0.0	¹²
VAR, 3.759%, 10/10/14		435		365,377		0.3
VAR, 3.803%, 10/10/14		3		2,147		0.0	¹²
TPF Generation Holdings LLC, 2nd Lien Term Loan, VAR, 4.557%, 12/15/14		500		475,625		0.4

Total Utilities				1,662,932		1.4

Total Loan Participations & Assignments
(Cost $23,282,201)				24,096,186		20.7

ASSET-BACKED SECURITIES — 1.3%
Countrywide Asset-Backed Certificates, Series 2004-13, Class MV8, VAR, 1.950%, 01/25/35 ^3,9		115		6,969		0.0	¹²
Long Beach Mortgage Loan Trust, Series 2004-5, Class M6, VAR, 2.750%, 09/25/34 ^3,9		56		6,136		0.0	¹²
Unipac IX LLC, 13.000%, 04/11/13 ^3,9		1,500		1,477,558		1.3

Total Asset-Backed Securities
(Cost $1,642,092)				1,490,663		1.3

Total Fixed Income Investments
(Cost $146,169,226)				149,919,316		128.6

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)


Description	Shares (000)			Value		Percent of Net Assets*

COMMON STOCKS — 3.8%
CONSUMER DISCRETIONARY — 0.5%
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
Adelphia Recovery Trust, Contingent Value ¹		1,297			40,204		0.0	¹²

					40,205		0.0	¹²
LEISURE EQUIPMENT & PRODUCTS — 0.3%
True Temper Holdings, Inc. ADR ^1,3,9		43			393,414		0.3

TEXTILES, APPAREL & LUXURY GOODS — 0.2%
Broder Brothers Co. ^1,3,9		38			187,765		0.2
WestPoint International, Inc. ^1,3,9		28			—		0.0

					187,765		0.2

Total Consumer Discretionary					621,384		0.5

CONSUMER STAPLES — 0.2%
FOOD PRODUCTS — 0.1%
Eurofresh, Inc., ADR ^1,3,9		106			79,414		0.1

HOUSEHOLD PRODUCTS — 0.1%
Spectrum Brands Holdings, Inc. ¹		6			172,056		0.1

Total Consumer Staples					251,470		0.2

INDUSTRIALS — 0.3%
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			135,702		0.1

Total Industrials					323,589		0.3

INFORMATION TECHNOLOGY — 1.0%
COMPUTERS & PERIPHERALS — 0.0% ¹²
Stratus Technologies, Inc., ADR ^1,3,9		8			—		0.0

IT SERVICES — 0.1%
Unisys Corp. ¹		3			100,341		0.1

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.9%
MagnaChip Semiconductor S.A./MagnaChip Semiconductor Finance Co., (Luxembourg) ^1,3,9		99			1,022,379		0.9

Total Information Technology					1,122,720		1.0


Description	Shares (000)			Value		Percent of Net Assets*

MATERIALS — 1.4%
CHEMICALS — 0.3%
LyondellBasell Industries N.V., (Netherlands), Class A ¹		10		$	393,008		0.3	%

CONSTRUCTION MATERIALS — 0.1%
U.S. Concrete, Inc. ¹		10			95,300		0.1

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

PAPER & FOREST PRODUCTS — 1.0%
AbitibiBowater, Inc., (Canada) ¹		43			1,145,177		1.0

Total Materials					1,660,568		1.4

TELECOMMUNICATION SERVICES — 0.4%
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.4%
AboveNet, Inc.		7			434,043		0.4
XO Holdings, Inc. ¹		1			387		0.0	¹²

					434,430		0.4
WIRELESS TELECOMMUNICATION SERVICES — 0.0% ¹²
USA Mobility, Inc.		—	¹¹		420		0.0	¹²

Total Telecommunication Services					434,850		0.4

UTILITIES — 0.0% ¹²
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.0% ¹²
GenOn Energy, Inc. ¹		3			10,085		0.0	¹²

Total Common Stocks
(Cost $6,394,750)					4,424,666		3.8

PREFERRED STOCKS — 3.1%
CONSUMER DISCRETIONARY — 0.8%
AUTO COMPONENTS — 0.0% ¹²
Glasstech, Inc., Pfd, Series C, ^1,3,9		—	¹¹		—		0.0

AUTOMOBILES — 0.3%
General Motors Co., Series B, 4.750%, 12/01/13		7			337,400		0.3

HOUSEHOLD DURABLES — 0.3%
M/I Homes, Inc., Pfd, Series A, 9.750%, 03/15/12 ^1,14		21			380,321		0.3

MEDIA — 0.2%
Spanish Broadcasting System, Inc., Pfd ^1,3,9		481			3,657		0.0	¹²

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)


Description	Shares (000)			Value		Percent of Net Assets*

MEDIA (continued)
Spanish Broadcasting System, Inc., Pfd, Series B, PIK, 10.750%, 05/02/11 ^1,3,9,14		—	¹¹	$	230,280		0.2	%

					233,937		0.2

Total Consumer Discretionary					951,658		0.8

CONSUMER STAPLES — 0.1%
FOOD PRODUCTS — 0.1%
Eurofresh, Inc., Pfd, ADR ^1,3,9		—	¹¹		147,688		0.1

FINANCIALS — 2.2%
COMMERCIAL BANKS — 1.4%
CoBank ACB, Pfd, Series D, 11.000%, 10/01/14 ^3,9,14		30			1,674,375		1.4

CONSUMER FINANCE — 0.7%
Ally Financial, Inc., 7.000%, 12/31/11 ^2,14		1			568,574		0.5
Citi Group Capital XIII, VAR, 7.875%, 10/30/40		7			197,280		0.2

					765,854		0.7
DIVERSIFIED FINANCIAL SERVICES — 0.1%
GMAC Capital Trust I, Series 2, VAR, 8.125%, 02/15/40 ¹		4			91,800		0.1

Total Financials					2,532,029		2.2

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

Total Preferred Stocks
(Cost $4,161,333)					3,631,375		3.1

Total Equity Investments
(Cost $10,556,083)					8,056,041		6.9


Description	Par (000)		Value			Percent of Net Assets*

SHORT-TERM INVESTMENT — 1.3%
INVESTMENT COMPANY — 1.3%
JPMorgan Prime Money Market Fund, Institutional Class Shares, 0.100% ^5,13
(Cost $1,522,800)	$	1,523	$	1,522,800			1.3	%

TOTAL INVESTMENTS (Cost $158,248,109)				159,498,157			136.8

Preferred Stock and Liabilities in Excess of Other Assets				(42,901,539	)		(36.8	)

NET ASSETS Applicable to Common Stockholders				116,596,618			100.0	%

ADR

American Depositary Receipt

Cert

Certificate

Company

Disc

Discount

Guar

Guaranteed

LIBOR

London Interbank Offered Rate

Mtg

Mortgage

Note

Pfd

Preferred

PIK

Payment in-kind

Sec’d

Secured

Senior

Sub

Subordinate

Unsec’d

Unsecured

VAR

Variable Rate Security. The interest rate shown is the rate in effect as of March 31, 2011.

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 $54,235,205 and 46.5% of net assets applicable to common stockholders.

Fair valued security. These securities amounted to $8,961,463 and 7.7% 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.

⁷

Step-up bond. Interest rate is effective rate as of March 31, 2011.

⁹

Security deemed to be illiquid. These securities amounted to $8,961,463 and 7.7% 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%.

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)

¹³

The rate shown is the current yield as of March 31, 2011.

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, 2011.

As of March 31, 2011, 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	$	11,510,238
Aggregate gross unrealized depreciation		(10,260,190	)

Net unrealized appreciation/depreciation	$	1,250,048

Federal income tax cost of investments	$	158,248,109

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)

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in aggregate that is significant to the fair value measurement. 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 (continued)

As of March 31, 2011 (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	$	—	$	40,204		$	581,180		$	621,384
Consumer Staples		172,056		—			79,414			251,470
Industrials		135,702		—			187,887			323,589
Information Technology		100,341		—			1,022,379			1,122,720
Materials		1,633,485		—			27,083			1,660,568
Telecommunication Services		434,850		—			—			434,850
Utilities		10,085		—			—			10,085

Total Common Stocks		2,486,519		40,204			1,897,943			4,424,666

Preferred Stocks
Consumer Discretionary		—		717,721			233,937			951,658
Consumer Staples		—		—			147,688			147,688
Financials		197,280		660,374			1,674,375			2,532,029
Information Technology		—		—			—	(a)		—	(a)

Total Preferred Stocks		197,280		1,378,095			2,056,000			3,631,375

Debt Securities
Asset-Backed Securities		—		—			1,490,663			1,490,663
Corporate Bonds
Consumer Discretionary		—		38,685,130			—			38,685,130
Consumer Staples		—		4,452,667			421,977			4,874,644
Energy		—		12,689,778			—			12,689,778
Financials		—		13,687,236			—			13,687,236
Health Care		—		4,032,033			932,291			4,964,324
Industrials		—		14,377,560			65,389			14,442,949
Information Technology		—		6,653,569			420,885			7,074,454
Materials		—		10,472,513			123,679			10,596,192
Telecommunication Services		—		9,678,966			—			9,678,966
Utilities		—		7,638,794			—			7,638,794

Total Corporate Bonds		—		122,368,246			1,964,221			124,332,467

Loan Participations & Assignments
Consumer Discretionary		—		9,404,531			—			9,404,531
Consumer Staples		—		481,502			—			481,502
Energy		—		238,874			—			238,874
Financials		—		3,138,757			178,500			3,317,257
Health Care		—		214,908			—			214,908
Industrials		—		3,176,018			124,268			3,300,286
Information Technology		—		2,083,326			751,118			2,834,444
Materials		—		1,633,469			498,750			2,132,219
Telecommunication Services		—		509,233			—			509,233
Utilities		—		1,662,932			—			1,662,932

Total Loan Participations & Assignments		—		22,543,550			1,552,636			24,096,186

Short-Term Investments
Investment Companies		1,522,800		—			—			1,522,800

Total Investments in Securities	$	4,206,599	$	146,330,095		$	8,961,463		$	159,498,157

Depreciation in Other Financial Instrument
Swap	$	—	$	(47,268	)	$	—		$	(47,268	)

(a)

Security has zero value.

There were no transfers between Levels 1 and 2 during the period ended March 31, 2011.

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

Schedule of Portfolio Investments (continued)

As of March 31, 2011 (Unaudited)

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


	Balance as of 12/31/10			Realized gain (loss)			Change in unrealized appreciation (depreciation)			Net amortization (accretion)			Purchases ¹		Sales ²			Transfers into Level 3		Transfers out of Level 3			Balance as of 3/31/11
Investments in Securities
Asset-Backed Securities	$	1,488,539		$	—		$	(221	)	$	2,345		$	—	$	—		$	—	$	—		$	1,490,663
Common Stocks — Consumer Discretionary		343,970			—			237,210			—			—		—			—		—			581,180
Common Stocks — Consumer Staples		219,182			—			(139,768	)		—			—		—			—		—			79,414
Common Stocks — Industrials		187,887			—			—			—			—		—			—		—			187,887
Common Stocks — Information Technology		1,030,974			—			(8,595	)		—			—		—			—		—			1,022,379	(a)
Common Stocks — Materials		27,083			—			—			—			—		—			—		—			27,083
Corporate Bonds — Consumer Discretionary		424,142			—			—			—			—		—			—		(424,142	)		—
Corporate Bonds — Consumer Staples		406,725			—			—			—			15,252		—			—		—			421,977
Corporate Bonds — Financials		880,000			154,170			(19,756	)		1,461			—		(1,015,875	)		—		—			—
Corporate Bonds — Health Care		932,291			—			97			(97	)		—		—			—		—			932,291
Corporate Bonds — Industrials		465,443			—			(185	)		618			1,581		(261,568	)		—		(140,500	)		65,389
Corporate Bonds — Information Technology		418,093			—			2,792			—			—		—			—		—			420,885
Corporate Bonds — Materials		84,204			—			39,475			—			—		—			—		—			123,679
Loan Participations & Assignments — Financials		817,789			(4,782	)		(3,500	)		—			182,000		(813,007	)		—		—			178,500
Loan Participations & Assignments — Industrials		123,718			—			—			—			550		—			—		—			124,268
Loan Participations & Assignments — Information Technology		857,780			—			8,186			(760	)		—		(114,088	)		—		—			751,118
Loan Participations & Assignments — Materials		493,750			—			5,000			—			—		—			—		—			498,750
Preferred Stocks — Consumer Discretionary		206,234			—			27,703			—			—		—			—		—			233,937
Preferred Stocks — Consumer Staples		147,688			—			—			—			—		—			—		—			147,688
Preferred Stocks — Financials		1,622,814			—			51,561			—			—		—			—		—			1,674,375
Preferred Stocks — Information Technology		—	(a)		—			—			—			—		—			—		—			—	(a)

Total	$	11,178,306		$	149,388		$	199,999		$	3,567		$	199,383	$	(2,204,538	)	$	—	$	(564,642	)	$	8,961,463

(a)

Security has zero value.

Purchases include all purchases of securities and securities received in corporate actions.

Sales include all sales of securities, maturities, paydowns and securities tendered in a corporate action.

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

Schedule of Portfolio Investments (concluded)

As of March 31, 2011 (Unaudited)

Transfers into, and out of, Level 3 are valued using 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 March 31, 2011, which were valued using significant unobservable inputs (Level 3) amounted to $219,755.

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 0.243% to 0.266% for the period ended March 31, 2011. 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)

11/30/07

—

5 million

06/01/11

4.000

% monthly

1 month LIBOR monthly

0.243

(47,268

)

Represents rate in effect at March 31, 2011.

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

Patricia A. Maleski

President and Principal Executive Officer

Joy C. Dowd

Treasurer and Principal Financial Officer

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 Trust Company, N.A.

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

Independent Directors’ Counsel

Kramer Levin Naftalis & Frankel LLP

Executive Offices

Pacholder High Yield Fund, Inc.

270 Park Avenue

New York, NY 10017

Shareholder Services

(877) 217-9502

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

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

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