UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number:
811-05639
Pacholder High Yield Fund, Inc.
(Exact name of registrant as specified in charter)
270 Park Avenue
New York, NY 10017
(Address of principal executive offices) (Zip code)
Frank J. Nasta
270 Park Avenue
New York, NY 10017
(Name and Address of Agent for Service)
Registrants telephone number, including area code: (877) 217-9502
Date of fiscal year
end: December 31
Date of reporting period: January 1, 2011 through June 30, 2011
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the
Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (OMB) control
number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The
OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
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 Funds NAV, share price, news releases, and SEC filings. We created this site to provide stockholders quick and easy access to the timeliest information available regarding
the Fund.
This report is for the
information of stockholders of Pacholder High Yield Fund, Inc. It is not a prospectus, offering circular or other representation intended for use in connection with the purchase or sale of shares of the Fund or any securities mentioned in this
report.
P
ACHOLDER
H
IGH
Y
IELD
F
UND
, I
NC
.
S
EMI
-A
NNUAL
R
EPORT
J
UNE
30, 2011
(U
NAUDITED
)
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
(Unaudited)
Dear Shareholders:
2011 Six Month Review
In the six months 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. Despite broad-based
concerns about economic contagion from Europes debt crisis, political unrest in the Middle East and the tragic earthquake and subsequent tsunami in Japan, flows into high yield and leveraged loan mutual funds remained strong during the period,
as investors continued to favor these investments over other areas of the U.S. fixed income market.
For the six months ended June 30, 2011, the Pacholder High Yield Fund, Inc. (the Fund) returned 6.07% based on Net Asset Value (NAV) compared to the 4.82% return for the Credit Suisse High
Yield Index, Developed Countries Only (the Index) and the 6.47% average total return of the Morningstar Closed-End High Yield Category.
The Funds relative outperformance versus the Index for the six months ended June 30, 2011 was due in large part to security selection in the financial and
media/telecom sectors. Security selection in the healthcare and transportation sectors detracted from the Funds overall performance. The Funds relative outperformance was enhanced due to its leverage obtained through its Auction Rate
Preferred Shares (ARPS).
According to Moodys Investor
Services, Inc. (Moodys), the global speculative-grade issuer-weighted default rate declined to 2.2% in June 2011 from the March 2011 rate of 2.6%. Moodys predicted, under its baseline scenario, that the global speculative-grade default
rate will continue to fall to 1.5%-1.7% by the 2011 year-end.
As of June
30, 2011, the Funds largest sector concentration was in consumer discretionary, which accounted for 30.2% of its market value. For the six months ended June 30, 2011, the average price of the Index increased 1.56 from $100.94 to $102.50, the
average yield decreased 0.03% from 7.45% to 7.42% and the spread over the comparable U.S. Treasury narrowed 0.03% from 5.72% to 5.69%.
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 Funds 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 have failed. The weekly auctions for the
Funds 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 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. Should you have any questions, please visit www.pacholder.com or call Shareholder Services at 1-877-217-9502.
Sincerely,
George C.W. Gatch
CEO-Investment
Management Americas
J.P. Morgan Asset Management
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
(Unaudited)
The
performance quoted is past performance and is not a guarantee of future results. Closed-end funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investors shares, when
sold, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown.
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 & Poors and Moodys Investors Service. Although these securities tend to provide higher yields than higher rated securities, there
is a greater risk that the Funds share value will decline. Because this Fund primarily invests in bonds, it is subject to interest rate risks. Bond prices generally fall when interest rates rise.
Opinions and estimates offered constitute our judgment and are subject to change
without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an
offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only, and is not intended to provide,
and should not be relied on for, accounting and legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only
and are not to be relied upon as advice or interpreted as a recommendation.
Availability of Portfolio Holdings and Other Information
No sooner than 10 days after the end of each month, the Funds uncertified complete schedule of its portfolio holdings will be available on our website (www.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 Funds Forms N-Q are available, without charge, on
the SECs website at www.sec.gov. The Funds Forms N-Q may be reviewed and copied at the SECs Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
No sooner than 10 calendar days after the end of each
month, the Funds top ten holdings as of the last day of each month as well as certain other fund facts including estimated undistributed net income and statistical information will also be available on the Funds website.
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
(Unaudited)
|
|
|
|
|
|
|
|
|
Total Return *
|
|
Net Asset Value
(NAV)
|
|
|
Market
Price
|
|
6 Months
#
|
|
|
6.07
|
%**
|
|
|
21.06
|
%
|
1 Year
|
|
|
21.94
|
%
|
|
|
37.02
|
%
|
5 Year
|
|
|
10.66
|
%
|
|
|
12.22
|
%
|
10 Year
|
|
|
12.25
|
%
|
|
|
11.46
|
%
|
|
|
|
|
|
|
|
|
|
Price per share at June 30, 2011
|
|
$
|
8.80
|
|
|
$
|
9.80
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Total returns assume the reinvestment of all dividends and capital gains, if any. Total returns shown are average annual returns unless otherwise noted.
|
**
|
|
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in
accordance with accounting principles generally accepted in the United States of America.
|
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONVERTIBLE BOND
0.0%
12
|
|
|
|
|
|
|
|
|
|
|
|
|
MATERIALS
0.0%
12
|
|
|
|
|
|
|
|
|
|
CONSTRUCTION MATERIALS
0.0%
12
|
|
|
|
|
|
|
|
|
|
U.S. Concrete, Inc., Private Placement Secd Nt, 9.500%,
08/31/15
2
(cost $46,000)
|
|
$
|
46
|
|
|
$
|
55,775
|
|
|
|
0.0
|
%
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORPORATE BONDS 106.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSUMER DISCRETIONARY 31.3%
|
|
|
|
|
|
|
|
|
|
AUTO COMPONENTS 0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Pittsburgh Glass Works LLC, Private Placement, Sr Secd Nt,
8.500%, 04/15/16
2
|
|
|
100
|
|
|
|
102,750
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AUTOMOBILES 1.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Chrysler Group LLC/CG Co-Issuer, Inc., Private Placement, Sr Secd Nt,
|
|
|
|
|
|
|
|
|
|
|
|
|
8.000%, 06/15/19
2
|
|
|
200
|
|
|
|
196,500
|
|
|
|
0.2
|
|
8.250%, 06/15/21
2
|
|
|
200
|
|
|
|
196,000
|
|
|
|
0.2
|
|
Ford Holdings LLC,
|
|
|
|
|
|
|
|
|
|
|
|
|
9.300%, 03/01/30
|
|
|
262
|
|
|
|
323,586
|
|
|
|
0.3
|
|
9.375%, 03/01/20
10
|
|
|
150
|
|
|
|
172,196
|
|
|
|
0.1
|
|
Ford Motor Co.,
|
|
|
|
|
|
|
|
|
|
|
|
|
7.750%, 06/15/43
|
|
|
750
|
|
|
|
780,141
|
|
|
|
0.7
|
|
8.900%, 01/15/32
|
|
|
125
|
|
|
|
146,565
|
|
|
|
0.1
|
|
Ford Motor Co., Nt, 9.980%, 02/15/47
|
|
|
125
|
|
|
|
151,947
|
|
|
|
0.1
|
|
Motors Liquidation Co.,
|
|
|
|
|
|
|
|
|
|
|
|
|
0.000%, 03/15/36
1,3,4,9
|
|
|
55
|
Units
|
|
|
688
|
|
|
|
0.0
|
12
|
5.250%, 03/06/32
1,4
|
|
|
25
|
Units
|
|
|
162
|
|
|
|
0.0
|
12
|
6.250%, 07/15/33
1,4
|
|
|
15
|
Units
|
|
|
97
|
|
|
|
0.0
|
12
|
7.250%, 04/15/41
1,4
|
|
|
|
Units
11
|
|
|
1
|
|
|
|
0.0
|
12
|
7.250%, 07/15/41
1,4
|
|
|
|
Units
11
|
|
|
1
|
|
|
|
0.0
|
12
|
7.250%, 02/15/52
1,4
|
|
|
7
|
Units
|
|
|
47
|
|
|
|
0.0
|
12
|
7.375%, 05/15/48
1,4
|
|
|
10
|
Units
|
|
|
63
|
|
|
|
0.0
|
12
|
7.375%, 10/01/51
1,4
|
|
|
|
Units
11
|
|
|
1
|
|
|
|
0.0
|
12
|
Motors Liquidation Co., Debentures,
|
|
|
|
|
|
|
|
|
|
|
|
|
6.750%, 05/01/28
1,4
|
|
|
50
|
|
|
|
1,250
|
|
|
|
0.0
|
12
|
8.100%, 06/15/24
1,4
|
|
|
1,725
|
|
|
|
43,125
|
|
|
|
0.1
|
|
8.375%, 07/15/33
1,4
|
|
|
425
|
|
|
|
10,625
|
|
|
|
0.0
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,022,995
|
|
|
|
1.8
|
|
BROADCASTING & CABLE TV 4.8%
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
465
|
|
|
|
0.0
|
12
|
9.375%, 11/15/09
1,4
|
|
|
560
|
|
|
|
347
|
|
|
|
0.0
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADCASTING & CABLE TV (continued)
|
|
Cablevision Systems Corp.,
8.000%, 04/15/20
|
|
$
|
95
|
|
|
$
|
101,887
|
|
|
|
0.1
|
%
|
Cablevision Systems Corp., Sr Unsecd Nt, 7.750%, 04/15/18
|
|
|
80
|
|
|
|
85,300
|
|
|
|
0.1
|
|
CCO Holdings LLC/CCO Holdings Capital Corp., 7.000%, 01/15/19
|
|
|
235
|
|
|
|
242,050
|
|
|
|
0.2
|
|
CCO Holdings LLC/CCO Holdings Capital Corp., Co Guar,
|
|
|
|
|
|
|
|
|
|
|
|
|
6.500%, 04/30/21
|
|
|
400
|
|
|
|
394,500
|
|
|
|
0.4
|
|
7.250%, 10/30/17
|
|
|
340
|
|
|
|
352,325
|
|
|
|
0.3
|
|
7.875%, 04/30/18
|
|
|
90
|
|
|
|
94,838
|
|
|
|
0.1
|
|
8.125%, 04/30/20
|
|
|
550
|
|
|
|
594,000
|
|
|
|
0.5
|
|
CCO Holdings LLC/CCO Holdings Capital Corp., Private Placement, 7.000%, 01/15/19
2
|
|
|
90
|
|
|
|
92,475
|
|
|
|
0.1
|
|
Cequel Communications Holdings I LLC and Cequel Capital Corp., Private Placement, Sr Nt,
8.625%, 11/15/17
2
|
|
|
599
|
|
|
|
622,960
|
|
|
|
0.6
|
|
Charter Communications Operating LLC/Charter Communications Operating Capital, Private Placement, Nt, 10.875%, 09/15/14
2
|
|
|
150
|
|
|
|
165,000
|
|
|
|
0.1
|
|
CSC Holdings LLC,
|
|
|
|
|
|
|
|
|
|
|
|
|
7.625%, 07/15/18
|
|
|
50
|
|
|
|
54,125
|
|
|
|
0.1
|
|
8.625%, 02/15/19
|
|
|
44
|
|
|
|
49,610
|
|
|
|
0.0
|
12
|
CSC Holdings LLC, Sr Nt,
7.875%, 02/15/18
|
|
|
96
|
|
|
|
104,880
|
|
|
|
0.1
|
|
DISH DBS Corp., Private Placement,
Co Guar, 6.750%,
06/01/21
2
|
|
|
360
|
|
|
|
369,000
|
|
|
|
0.3
|
|
DISH DBS Corp., Sr Nt, Co Guar, 7.875%, 09/01/19
|
|
|
215
|
|
|
|
231,931
|
|
|
|
0.2
|
|
Mediacom LLC/Mediacom Capital Corp., 9.125%, 08/15/19
|
|
|
342
|
|
|
|
360,810
|
|
|
|
0.3
|
|
Sirius XM Radio, Inc., Private Placement, 9.750%,
09/01/15
2
|
|
|
150
|
|
|
|
165,000
|
|
|
|
0.1
|
|
Telesat Canada/Telesat LLC, (Canada),
|
|
|
|
|
|
|
|
|
|
|
|
|
11.000%, 11/01/15
|
|
|
136
|
|
|
|
148,750
|
|
|
|
0.1
|
|
12.500%, 11/01/17
10
|
|
|
150
|
|
|
|
180,000
|
|
|
|
0.2
|
|
Unitymedia Hessen GmbH & Co.
KG/Unitymedia NRW GmbH, Private Placement, Sr Secd Nt, (Germany), 8.125%, 12/01/17
2
|
|
|
375
|
|
|
|
398,438
|
|
|
|
0.4
|
|
See Notes to Financial Statements.
4
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADCASTING & CABLE TV (continued)
|
|
Virgin Media Finance plc, (United Kingdom), 8.375%, 10/15/19
|
|
$
|
225
|
|
|
$
|
250,875
|
|
|
|
0.2
|
%
|
XM Satellite Radio, Inc., Private Placement, Sr Nt,
13.000%,
08/01/13
2
|
|
|
330
|
|
|
|
386,925
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,446,491
|
|
|
|
4.8
|
|
DISTRIBUTORS 0.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
McJunkin Red Man Corp., Private Placement, Sr Nt,
9.500%,
12/15/16
2
|
|
|
355
|
|
|
|
361,212
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVERSIFIED CONSUMER SERVICES 1.2%
|
|
|
|
|
|
|
|
|
|
Knowledge Learning Corp., Inc., Private Placement, Sr Sub Nt,
7.750%, 02/01/15
2,10
|
|
|
700
|
|
|
|
686,875
|
|
|
|
0.6
|
|
Mac-Gray Corp., Sr Nt,
7.625%, 08/15/15
10
|
|
|
650
|
|
|
|
663,000
|
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,349,875
|
|
|
|
1.2
|
|
GAMING 6.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Ameristar Casinos, Inc., Private Placement, Nt, 7.500%,
04/15/21
2
|
|
|
285
|
|
|
|
293,906
|
|
|
|
0.3
|
|
Ceasars Entertainment Operating Co., Inc., 11.250%, 06/01/17
|
|
|
275
|
|
|
|
303,531
|
|
|
|
0.3
|
|
Chukchansi Economic Development Authority, Private Placement, 8.000%, 11/15/13
2
|
|
|
766
|
|
|
|
624,290
|
|
|
|
0.5
|
|
CityCenter Holdings LLC/CityCenter Finance Corp., Private Placement, PIK, 11.500%, 01/15/17
2
|
|
|
355
|
|
|
|
385,175
|
|
|
|
0.3
|
|
Downstream Development Authority of the Quapaw Tribe of Oklahoma, Private Placement, Sr Secd Nt, 10.500%, 07/01/19
2
|
|
|
225
|
|
|
|
223,875
|
|
|
|
0.2
|
|
Isle of Capri Casinos, Inc., Private Placement, 7.750%,
03/15/19
2
|
|
|
300
|
|
|
|
303,000
|
|
|
|
0.3
|
|
Isle of Capri Casinos, Inc., Sr Nt, 7.000%, 03/01/14
|
|
|
250
|
|
|
|
247,813
|
|
|
|
0.2
|
|
Mashantucket Western Pequot Tribe, Private Placement,
5.912%,
09/01/21
1,2,4
|
|
|
475
|
|
|
|
215,108
|
|
|
|
0.2
|
|
MCE Finance Ltd., Sr Secd Nt, (Cayman Islands),
10.250%, 05/15/18
|
|
|
200
|
|
|
|
222,750
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAMING (continued)
|
|
MGM Resorts International, Co Guar,
|
|
|
|
|
|
|
|
|
|
|
|
|
6.625%, 07/15/15
|
|
$
|
231
|
|
|
$
|
216,563
|
|
|
|
0.2
|
%
|
7.500%, 06/01/16
|
|
|
170
|
|
|
|
161,500
|
|
|
|
0.1
|
|
7.625%, 01/15/17
|
|
|
201
|
|
|
|
193,462
|
|
|
|
0.2
|
|
MGM Resorts International, Private Placement, Nt, 10.000%,
11/01/16
2
|
|
|
1,400
|
|
|
|
1,484,000
|
|
|
|
1.3
|
|
Pinnacle Entertainment, Inc.,
8.750%, 05/15/20
|
|
|
375
|
|
|
|
392,813
|
|
|
|
0.3
|
|
Pinnacle Entertainment, Inc., Nt, Co Guar, 8.625%, 08/01/17
|
|
|
200
|
|
|
|
214,750
|
|
|
|
0.2
|
|
San Pasqual Casino, Private Placement, 8.000%,
09/15/13
2
|
|
|
500
|
|
|
|
495,000
|
|
|
|
0.4
|
|
Seminole Hard Rock Entertainment, Inc., Private Placement, VAR, 2.747%, 03/15/14
2
|
|
|
500
|
|
|
|
467,500
|
|
|
|
0.4
|
|
Seminole Indian Tribe of Florida, Private Placement, 7.750%,
10/01/17
2
|
|
|
75
|
|
|
|
77,625
|
|
|
|
0.1
|
|
Seneca Gaming Corp., Private Placement, 8.250%,
12/01/18
2
|
|
|
175
|
|
|
|
180,688
|
|
|
|
0.2
|
|
Shingle Springs Tribal Gaming Authority, Private Placement, Sr Nt, 9.375%, 06/15/15
2,10
|
|
|
850
|
|
|
|
586,500
|
|
|
|
0.5
|
|
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp., Private Placement, Secd Nt, 8.625%, 04/15/16
2
|
|
|
115
|
|
|
|
118,450
|
|
|
|
0.1
|
|
Yonkers Racing Corp., Private Placement, Secd Nt,
11.375%, 07/15/16
2
|
|
|
100
|
|
|
|
108,500
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,516,799
|
|
|
|
6.6
|
|
HOTELS, RESTAURANTS & LEISURE 2.8%
|
|
|
|
|
|
|
|
|
|
Banc of America Large Loan, Inc.,
Private Placement,
Series 2010-HLTN, Class HLTN, VAR,
1.937%, 11/15/15
2
|
|
|
585
|
|
|
|
542,906
|
|
|
|
0.5
|
|
CKE Holdings, Inc., Private Placement, Nt, PIK, 10.500%,
03/14/16
2
|
|
|
95
|
|
|
|
91,437
|
|
|
|
0.1
|
|
CKE Restaurants, Inc., Sr Secd Nt, 11.375%, 07/15/18
|
|
|
350
|
|
|
|
382,375
|
|
|
|
0.3
|
|
Dave & Busters, Inc.,
11.000%, 06/01/18
|
|
|
30
|
|
|
|
32,100
|
|
|
|
0.0
|
12
|
DineEquity, Inc., Private Placement, 9.500%,
10/30/18
2
|
|
|
170
|
|
|
|
184,450
|
|
|
|
0.2
|
|
See Notes to Financial Statements.
5
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOTELS, RESTAURANTS & LEISURE (continued)
|
|
Dunkin Finance Corp., Private Placement, 9.625%,
12/01/18
2
|
|
$
|
150
|
|
|
$
|
151,311
|
|
|
|
0.1
|
%
|
Landrys Holdings, Inc., Private Placement, 11.500%,
06/01/14
2
|
|
|
100
|
|
|
|
99,750
|
|
|
|
0.1
|
|
Landrys Restaurants, Inc., Private Placement, Sr Secd Nt,
11.625%, 12/01/15
2
|
|
|
120
|
|
|
|
128,400
|
|
|
|
0.1
|
|
Landrys Restaurants, Inc., Sr Secd Nt, 11.625%, 12/01/15
|
|
|
200
|
|
|
|
214,000
|
|
|
|
0.2
|
|
Real Mex Restaurants, Inc.,
14.000%, 01/01/13
|
|
|
200
|
|
|
|
194,000
|
|
|
|
0.2
|
|
Royal Caribbean Cruises Ltd., Sr Nt, (Liberia), 11.875%, 07/15/15
|
|
|
231
|
|
|
|
284,708
|
|
|
|
0.2
|
|
Sizzling Platter LLC, Private Placement, Sr Secd Nt, 12.250%, 04/15/16
2
|
|
|
300
|
|
|
|
306,750
|
|
|
|
0.3
|
|
Speedway Motorsports, Inc., Sr Nt, 8.750%, 06/01/16
|
|
|
300
|
|
|
|
323,625
|
|
|
|
0.3
|
|
Universal City Development Partners Ltd./UCDP Finance, Inc.,
10.875%, 11/15/16
|
|
|
250
|
|
|
|
297,500
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,233,312
|
|
|
|
2.8
|
|
HOUSEHOLD DURABLES 1.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
American Standard Americas, Private Placement, 10.750%,
01/15/16
2
|
|
|
100
|
|
|
|
96,125
|
|
|
|
0.1
|
|
Beazer Homes USA, Inc., Nt, Co Guar, 6.875%, 07/15/15
|
|
|
240
|
|
|
|
213,000
|
|
|
|
0.2
|
|
K Hovnanian Enterprises, Inc., Sr Nt, 10.625%, 10/15/16
|
|
|
445
|
|
|
|
443,888
|
|
|
|
0.4
|
|
Lennar Corp., Nt, Co Guar,
12.250%, 06/01/17
|
|
|
90
|
|
|
|
110,025
|
|
|
|
0.1
|
|
Lennar Corp., Sr Nt,
6.950%, 06/01/18
|
|
|
410
|
|
|
|
397,700
|
|
|
|
0.3
|
|
M/I Homes, Inc., Co Guar,
8.625%, 11/15/18
|
|
|
225
|
|
|
|
221,344
|
|
|
|
0.2
|
|
Standard Pacific Corp., Secd Nt, 8.375%, 05/15/18
|
|
|
165
|
|
|
|
163,556
|
|
|
|
0.1
|
|
Standard Pacific Corp., Sr Nt, 10.750%, 09/15/16
|
|
|
210
|
|
|
|
237,825
|
|
|
|
0.2
|
|
Standard Pacific Corp., Sr Nt, Co Guar, 8.375%, 01/15/21
|
|
|
90
|
|
|
|
88,200
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,971,663
|
|
|
|
1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERNET & CATALOG RETAIL 0.1%
|
|
|
|
|
|
|
|
|
|
Affinion Group, Inc., Private Placement, 7.875%,
12/15/18
2
|
|
$
|
75
|
|
|
$
|
70,125
|
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LEISURE EQUIPMENT & PRODUCTS 1.0%
|
|
|
|
|
|
|
|
|
|
Eastman Kodak Co., Private Placement, 9.750%,
03/01/18
2
|
|
|
740
|
|
|
|
706,700
|
|
|
|
0.6
|
|
FGI Holding Co., Inc., Co Guar, PIK, 13.000%, 10/01/15
|
|
|
238
|
|
|
|
239,079
|
|
|
|
0.2
|
|
Icon Health & Fitness, Private Placement, 11.875%,
10/15/16
2
|
|
|
225
|
|
|
|
229,500
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,175,279
|
|
|
|
1.0
|
|
MEDIA 6.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Barrington Broadcasting Group LLC and Barrington Broadcasting Capital Corp., Sr Sub Nt,
10.500%, 08/15/14
|
|
|
700
|
|
|
|
679,000
|
|
|
|
0.6
|
|
Block Communications, Inc., Private Placement, Sr Nt,
8.250%,
12/15/15
2,10
|
|
|
800
|
|
|
|
815,000
|
|
|
|
0.7
|
|
Bresnan Broadband Holdings LLC, Private Placement, Co Guar, 8.000%, 12/15/18
2
|
|
|
125
|
|
|
|
128,906
|
|
|
|
0.1
|
|
Clear Channel Communications, Inc., Private Placement, Nt,
9.000%, 03/01/21
2
|
|
|
500
|
|
|
|
478,750
|
|
|
|
0.4
|
|
Clear Channel Worldwide Holdings, Inc., Sr Nt,
|
|
|
|
|
|
|
|
|
|
|
|
|
9.250%, 12/15/17
|
|
|
125
|
|
|
|
135,937
|
|
|
|
0.1
|
|
9.250%, 12/15/17
|
|
|
250
|
|
|
|
272,500
|
|
|
|
0.3
|
|
Fisher Communications, Inc., Sr Nt, 8.625%, 09/15/14
|
|
|
384
|
|
|
|
388,800
|
|
|
|
0.3
|
|
Gannett Co., Inc., Private Placement,
|
|
|
|
|
|
|
|
|
|
|
|
|
6.375%, 09/01/15
2
|
|
|
50
|
|
|
|
51,750
|
|
|
|
0.0
|
12
|
7.125%, 09/01/18
2
|
|
|
200
|
|
|
|
200,750
|
|
|
|
0.2
|
|
Intelsat Jackson Holdings S.A., Co Guar, (Luxembourg),
8.500%, 11/01/19
|
|
|
150
|
|
|
|
159,000
|
|
|
|
0.1
|
|
Intelsat Jackson Holdings S.A., Private Placement, (Luxembourg),
7.250%, 10/15/20
2
|
|
|
150
|
|
|
|
149,250
|
|
|
|
0.1
|
|
Intelsat Luxembourg S.A., (Luxembourg), PIK,
12.500%, 02/04/17
|
|
|
1,032
|
|
|
|
1,109,265
|
|
|
|
1.0
|
|
See Notes to Financial Statements.
6
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEDIA (continued)
|
|
Intelsat Luxembourg S.A., Private Placement, Nt, Co Guar, (Luxembourg), PIK,
12.500%, 02/04/17
2
|
|
$
|
160
|
|
|
$
|
172,000
|
|
|
|
0.2
|
%
|
Lamar Media Corp., Sr Sub Nt, 6.625%, 08/15/15
|
|
|
125
|
|
|
|
126,562
|
|
|
|
0.1
|
|
McClatchy Co. (The),
11.500%, 02/15/17
|
|
|
200
|
|
|
|
212,500
|
|
|
|
0.2
|
|
Media General, Inc.,
11.750%, 02/15/17
|
|
|
480
|
|
|
|
466,800
|
|
|
|
0.4
|
|
Nexstar Broadcasting, Inc./Mission Broadcasting, Inc.,
8.875%, 04/15/17
|
|
|
400
|
|
|
|
421,000
|
|
|
|
0.4
|
|
Nielsen Finance LLC/Nielsen Finance Co., Private Placement,
7.750%, 10/15/18
2
|
|
|
50
|
|
|
|
52,500
|
|
|
|
0.1
|
|
Radio One, Inc., Private Placement, PIK, 12.500%,
05/24/16
2
|
|
|
496
|
|
|
|
502,954
|
|
|
|
0.4
|
|
Univision Communications, Inc., Private Placement, Sr Secd Nt,
6.875%, 05/15/19
2
|
|
|
150
|
|
|
|
148,500
|
|
|
|
0.1
|
|
Valassis Communications, Inc., Private Placement, 6.625%,
02/01/21
2
|
|
|
150
|
|
|
|
148,500
|
|
|
|
0.1
|
|
WMG Acquisition Corp.,
7.375%, 04/15/14
|
|
|
170
|
|
|
|
172,550
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,992,774
|
|
|
|
6.1
|
|
MULTILINE RETAIL 0.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
HSN, Inc., 11.250%, 08/01/16
|
|
|
323
|
|
|
|
364,183
|
|
|
|
0.3
|
|
Sears Holdings Corp., Private Placement, Secd Nt,
6.625%, 10/15/18
2
|
|
|
173
|
|
|
|
160,457
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
524,640
|
|
|
|
0.5
|
|
SPECIALTY RETAIL 3.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Chinos Acquisition Corp., Private Placement, Sr Nt,
8.125%,
03/01/19
2
|
|
|
175
|
|
|
|
168,438
|
|
|
|
0.2
|
|
Claires Stores, Inc., Private Placement, Nt, 8.875%,
03/15/19
2
|
|
|
480
|
|
|
|
448,800
|
|
|
|
0.4
|
|
Giraffe Acquisition Corp., Private Placement, 9.125%,
12/01/18
2
|
|
|
378
|
|
|
|
355,320
|
|
|
|
0.3
|
|
Michaels Stores, Inc., Private Placement, 7.750%,
11/01/18
2
|
|
|
150
|
|
|
|
150,375
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPECIALTY RETAIL (continued)
|
|
Michaels Stores, Inc., Sr Nt,
0.000%,
11/01/16
7
|
|
$
|
1,400
|
|
|
$
|
1,449,000
|
|
|
|
1.3
|
%
|
NBC Acquisition Corp.,
11.000%, 03/15/13
1,4
|
|
|
270
|
|
|
|
20,250
|
|
|
|
0.0
|
12
|
Nebraska Book Co., Inc.,
|
|
|
|
|
|
|
|
|
|
|
|
|
8.625%, 03/15/12
1,4
|
|
|
370
|
|
|
|
279,350
|
|
|
|
0.2
|
|
10.000%, 12/01/11
|
|
|
345
|
|
|
|
342,412
|
|
|
|
0.3
|
|
Needle Merger Sub Corp.,
Private Placement, Sr Nt,
8.125%,
03/15/19
2
|
|
|
200
|
|
|
|
201,500
|
|
|
|
0.2
|
|
Toys R Us Property Co II LLC, Sr Secd Nt, 8.500%, 12/01/17
|
|
|
285
|
|
|
|
297,825
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,713,270
|
|
|
|
3.3
|
|
TEXTILES, APPAREL & LUXURY GOODS 1.0%
|
|
|
|
|
|
Broder Brothers Co., Private Placement, PIK, 12.000%,
10/15/13
2
|
|
|
461
|
|
|
|
459,871
|
|
|
|
0.4
|
|
Quiksilver, Inc., 6.875%, 04/15/15
|
|
|
748
|
|
|
|
727,430
|
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,187,301
|
|
|
|
1.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consumer Discretionary
|
|
|
|
|
|
|
35,668,486
|
|
|
|
31.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSUMER STAPLES 4.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
BEVERAGES 0.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Constellation Brands, Inc., Sr Nt, 8.375%, 12/15/14
|
|
|
315
|
|
|
|
358,312
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOD & STAPLES RETAILING 1.5%
|
|
|
|
|
|
Ingles Markets, Inc.,
8.875%, 05/15/17
|
|
|
190
|
|
|
|
203,300
|
|
|
|
0.2
|
|
Rite Aid Corp., 9.500%, 06/15/17
|
|
|
1,000
|
|
|
|
912,500
|
|
|
|
0.8
|
|
Rite Aid Corp., Debentures,
7.500%, 03/01/17
|
|
|
600
|
|
|
|
595,500
|
|
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,711,300
|
|
|
|
1.5
|
|
FOOD PRODUCTS 1.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Blue Merger Sub, Inc., Private Placement, Sr Nt,
7.625%,
02/15/19
2
|
|
|
245
|
|
|
|
247,450
|
|
|
|
0.2
|
|
Eurofresh, Inc., 15.000%, 11/18/16
3,9
|
|
|
422
|
|
|
|
421,977
|
|
|
|
0.4
|
|
JBS USA LLC/JBS USA Finance, Inc., Private Placement, Sr Unsecd Nt, 7.250%, 06/01/21
2
|
|
|
590
|
|
|
|
573,775
|
|
|
|
0.5
|
|
Pilgrims Pride Corp., Private Placement, Co Guar,
7.875%, 12/15/18
2
|
|
|
400
|
|
|
|
370,000
|
|
|
|
0.3
|
|
See Notes to Financial Statements.
7
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOD PRODUCTS (continued)
|
|
Simmons Foods, Inc., Private Placement, 10.500%,
11/01/17
2
|
|
$
|
325
|
|
|
$
|
344,500
|
|
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,957,702
|
|
|
|
1.7
|
|
HOUSEHOLD PRODUCTS 0.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectrum Brands Holdings, Inc., PIK, 12.000%, 08/28/19
|
|
|
596
|
|
|
|
658,873
|
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERSONAL PRODUCTS 0.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
American Achievement Corp., Private Placement, 10.875%,
04/15/16
2
|
|
|
360
|
|
|
|
324,000
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOBACCO 0.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliance One International, Inc., Nt, 10.000%, 07/15/16
|
|
|
440
|
|
|
|
424,600
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consumer Staples
|
|
|
|
|
|
|
5,434,787
|
|
|
|
4.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENERGY 12.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
ENERGY EQUIPMENT & SERVICES 2.4%
|
|
|
|
|
|
Cie Generale de Geophysique-Veritas, Private Placement, Co Guar, (France), 6.500%, 06/01/21
2
|
|
|
365
|
|
|
|
352,225
|
|
|
|
0.3
|
|
Exterran Holdings, Inc., Private Placement, 7.250%,
12/01/18
2
|
|
|
230
|
|
|
|
232,300
|
|
|
|
0.2
|
|
Global Geophysical Services, Inc., 10.500%, 05/01/17
|
|
|
85
|
|
|
|
89,250
|
|
|
|
0.1
|
|
Helix Energy Solutions Group, Inc., Private Placement,
9.500%, 01/15/16
2,10
|
|
|
125
|
|
|
|
128,750
|
|
|
|
0.1
|
|
Key Energy Services, Inc., Nt,
6.750%, 03/01/21
|
|
|
165
|
|
|
|
165,000
|
|
|
|
0.1
|
|
Ocean Rig UDW, Inc., Sr Unsecd Nt, 9.500%, 04/27/16
|
|
|
500
|
|
|
|
498,750
|
|
|
|
0.4
|
|
Oil States International, Inc., Private Placement, Nt, Co Guar,
6.500%, 06/01/19
2
|
|
|
360
|
|
|
|
361,800
|
|
|
|
0.3
|
|
PHI, Inc., 8.625%, 10/15/18
|
|
|
310
|
|
|
|
323,950
|
|
|
|
0.3
|
|
Seadrill Ltd., (Bermuda),
6.500%, 10/05/15
|
|
|
300
|
|
|
|
291,000
|
|
|
|
0.3
|
|
Sevan Marine ASA, Private Placement, (Norway), VAR, 3.417%,
05/14/13
2
|
|
|
300
|
|
|
|
240,000
|
|
|
|
0.2
|
|
Trinidad Drilling Ltd., Private Placement, Sr Unsecd Nt, (Canada), 7.875%, 01/15/19
2
|
|
|
130
|
|
|
|
134,550
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,817,575
|
|
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OIL, GAS & CONSUMABLE FUELS 9.8%
|
|
|
|
|
|
|
|
|
|
Alpha Natural Resources, Inc., Co Guar,
|
|
|
|
|
|
|
|
|
|
|
|
|
6.000%, 06/01/19
|
|
$
|
200
|
|
|
$
|
199,500
|
|
|
|
0.2
|
%
|
6.250%, 06/01/21
|
|
|
200
|
|
|
|
201,000
|
|
|
|
0.2
|
|
Alta Mesa Holdings/Alta Mesa Finance Services Corp., Private Placement, 9.625%, 10/15/18
2
|
|
|
240
|
|
|
|
240,000
|
|
|
|
0.2
|
|
AmeriGas Partners LP/AmeriGas Finance Corp., 6.500%, 05/20/21
|
|
|
145
|
|
|
|
146,450
|
|
|
|
0.1
|
|
Antero Resources Finance Corp., Nt, 9.375%, 12/01/17
|
|
|
150
|
|
|
|
161,250
|
|
|
|
0.1
|
|
Arch Coal, Inc., 7.250%, 10/01/20
|
|
|
80
|
|
|
|
81,400
|
|
|
|
0.1
|
|
Arch Coal, Inc., Private Placement, Co Guar,
|
|
|
|
|
|
|
|
|
|
|
|
|
7.000%, 06/15/19
2
|
|
|
200
|
|
|
|
199,500
|
|
|
|
0.1
|
|
7.250%, 06/15/21
2
|
|
|
200
|
|
|
|
200,250
|
|
|
|
0.2
|
|
Bill Barrett Corp., 9.875%, 07/15/16
|
|
|
150
|
|
|
|
168,000
|
|
|
|
0.1
|
|
Brigham Exploration Co., Co Guar, 8.750%, 10/01/18
|
|
|
125
|
|
|
|
136,250
|
|
|
|
0.1
|
|
Brigham Exploration Co., Private Placement, Co Guar,
6.875%,
06/01/19
2
|
|
|
85
|
|
|
|
84,575
|
|
|
|
0.1
|
|
Calumet Specialty Products Partners LP/Calumet Finance Corp., Private Placement, Nt, Co Guar,
9.375%, 05/01/19
2
|
|
|
100
|
|
|
|
103,000
|
|
|
|
0.1
|
|
Carrizo Oil & Gas, Inc., Nt, Co Guar, 8.625%, 10/15/18
|
|
|
170
|
|
|
|
175,100
|
|
|
|
0.2
|
|
Citgo Petroleum Corp., Private Placement, Sr Nt,
11.500%,
07/01/17
2
|
|
|
300
|
|
|
|
348,000
|
|
|
|
0.3
|
|
Comstock Resources, Inc.,
7.750%, 04/01/19
|
|
|
75
|
|
|
|
75,563
|
|
|
|
0.1
|
|
Comstock Resources, Inc., Sr Nt, 8.375%, 10/15/17
|
|
|
406
|
|
|
|
426,300
|
|
|
|
0.4
|
|
Concho Resources, Inc., Co Guar, 6.500%, 01/15/22
|
|
|
230
|
|
|
|
230,575
|
|
|
|
0.2
|
|
Consol Energy, Inc.,
|
|
|
|
|
|
|
|
|
|
|
|
|
8.000%, 04/01/17
|
|
|
170
|
|
|
|
185,300
|
|
|
|
0.2
|
|
8.250%, 04/01/20
|
|
|
125
|
|
|
|
136,250
|
|
|
|
0.1
|
|
Continental Resources, Inc.,
7.125%, 04/01/21
|
|
|
75
|
|
|
|
79,125
|
|
|
|
0.1
|
|
Denbury Resources, Inc.,
8.250%, 02/15/20
|
|
|
40
|
|
|
|
43,600
|
|
|
|
0.0
|
12
|
See Notes to Financial Statements.
8
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OIL, GAS & CONSUMABLE FUELS (continued)
|
|
Eagle Rock Energy Partners LP/Eagle Rock Energy Finance Corp., Private Placement, Co Guar,
8.375%, 06/01/19
2
|
|
$
|
550
|
|
|
$
|
548,625
|
|
|
|
0.5
|
%
|
El Paso Performance-Linked Trust, Private Placement, Sr Nt,
7.750%, 07/15/11
2,10
|
|
|
450
|
|
|
|
450,913
|
|
|
|
0.4
|
|
El Paso Pipeline Partners Operating Co., LLC, 6.500%, 04/01/20
|
|
|
85
|
|
|
|
95,153
|
|
|
|
0.1
|
|
Energy XXI Gulf Coast, Inc., Private Placement, 7.750%,
06/15/19
2
|
|
|
175
|
|
|
|
174,125
|
|
|
|
0.2
|
|
Ferrellgas LP/Ferrellgas Finance Corp., Private Placement, Sr Unsecd Nt, 6.500%, 05/01/21
2
|
|
|
50
|
|
|
|
47,250
|
|
|
|
0.0
|
12
|
Foresight Energy LLC/Foresight Energy Corp., Private Placement,
9.625%, 08/15/17
2
|
|
|
180
|
|
|
|
191,025
|
|
|
|
0.2
|
|
Forest Oil Corp., Nt, 7.250%, 06/15/19
|
|
|
269
|
|
|
|
274,380
|
|
|
|
0.2
|
|
Frontier Oil Corp., 6.875%, 11/15/18
|
|
|
65
|
|
|
|
68,575
|
|
|
|
0.1
|
|
Hilcorp Energy I LP/Hilcorp Finance Co., Private Placement,
7.625%, 04/15/21
2
|
|
|
75
|
|
|
|
78,375
|
|
|
|
0.1
|
|
Holly Corp., 9.875%, 06/15/17
|
|
|
70
|
|
|
|
78,050
|
|
|
|
0.1
|
|
Holly Energy Partners LP/Holly Energy Finance Corp., Sr Unsecd Nt, 8.250%, 03/15/18
|
|
|
130
|
|
|
|
137,800
|
|
|
|
0.1
|
|
Inergy LP/Inergy Finance Corp., Co Guar, Sr Nt, 7.000%, 10/01/18
|
|
|
250
|
|
|
|
252,500
|
|
|
|
0.2
|
|
Inergy LP/Inergy Finance Corp., Private Placement, 6.875%,
08/01/21
2
|
|
|
175
|
|
|
|
175,000
|
|
|
|
0.2
|
|
James River Escrow, Inc., Private Placement, 7.875%,
04/01/19
2
|
|
|
60
|
|
|
|
59,400
|
|
|
|
0.1
|
|
Linn Energy LLC/Linn Energy Finance Corp., Private Placement, Co Guar, 6.500%, 05/15/19
2
|
|
|
145
|
|
|
|
143,550
|
|
|
|
0.1
|
|
MarkWest Energy Partners LP/MarkWest Energy Finance Corp., 6.750%, 11/01/20
|
|
|
150
|
|
|
|
153,000
|
|
|
|
0.1
|
|
NFR Energy LLC/NFR Energy Finance Corp., Private Placement,
|
|
|
|
|
|
|
|
|
|
|
|
|
9.750%, 02/15/17
2
|
|
|
360
|
|
|
|
349,200
|
|
|
|
0.3
|
|
Patriot Coal Corp., 8.250%, 04/30/18
|
|
|
125
|
|
|
|
129,375
|
|
|
|
0.1
|
|
Penn Virginia Corp.,
10.375%, 06/15/16
|
|
|
21
|
|
|
|
23,257
|
|
|
|
0.0
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OIL, GAS & CONSUMABLE FUELS (continued)
|
|
Penn Virginia Corp., Co Guar,
7.250%, 04/15/19
|
|
$
|
85
|
|
|
$
|
82,237
|
|
|
|
0.1
|
%
|
Penn Virginia Resource Partners LP/Penn Virginia Resource Finance Corp., Sr Nt, 8.250%, 04/15/18
|
|
|
160
|
|
|
|
165,200
|
|
|
|
0.1
|
|
Petrohawk Energy Corp., Private Placement, Co Guar,
6.250%,
06/01/19
2
|
|
|
260
|
|
|
|
254,150
|
|
|
|
0.2
|
|
Pioneer Drilling Co., 9.875%, 03/15/18
|
|
|
120
|
|
|
|
128,400
|
|
|
|
0.1
|
|
QEP Resources, Inc.,
6.875%, 03/01/21
|
|
|
140
|
|
|
|
147,700
|
|
|
|
0.1
|
|
Range Resources Corp.,
|
|
|
|
|
|
|
|
|
|
|
|
|
6.750%, 08/01/20
|
|
|
20
|
|
|
|
20,700
|
|
|
|
0.0
|
12
|
7.250%, 05/01/18
|
|
|
25
|
|
|
|
26,500
|
|
|
|
0.0
|
12
|
Regency Energy Partners LP/Regency Energy Finance Corp., Co Guar, 6.500%, 07/15/21
|
|
|
320
|
|
|
|
324,000
|
|
|
|
0.3
|
|
SM Energy Co., Private Placement, 6.625%,
02/15/19
2
|
|
|
130
|
|
|
|
130,325
|
|
|
|
0.1
|
|
Swift Energy Co., 8.875%, 01/15/20
|
|
|
100
|
|
|
|
107,000
|
|
|
|
0.1
|
|
Swift Energy Co., Sr Nt,
7.125%, 06/01/17
10
|
|
|
1,260
|
|
|
|
1,275,750
|
|
|
|
1.1
|
|
Targa Resources Partners LP/Targa Resources Partners Finance Corp., 8.250%, 07/01/16
|
|
|
280
|
|
|
|
295,400
|
|
|
|
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
|
|
Unit Corp., Co Guar,
6.625%, 05/15/21
|
|
|
70
|
|
|
|
70,000
|
|
|
|
0.1
|
|
Venoco, Inc., Private Placement, 8.875%,
02/15/19
2
|
|
|
225
|
|
|
|
225,000
|
|
|
|
0.2
|
|
W&T Offshore, Inc., Private Placement, Sr Nt, 8.500%,
06/15/19
2
|
|
|
235
|
|
|
|
237,938
|
|
|
|
0.2
|
|
Western Refining, Inc., Private Placement, VAR,
10.750%,
06/15/14
2
|
|
|
225
|
|
|
|
240,750
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,116,741
|
|
|
|
9.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Energy
|
|
|
|
|
|
|
13,934,316
|
|
|
|
12.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
9
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIALS 10.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL MARKETS 0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Oppenheimer Holdings, Inc., Private Placement, Sr Secd Nt,
8.750%, 04/15/18
2
|
|
$
|
135
|
|
|
$
|
140,063
|
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMERCIAL BANKS 1.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of America Corp.,
|
|
|
|
|
|
|
|
|
|
|
|
|
VAR, 8.125%, 05/15/18
14
|
|
|
160
|
|
|
|
167,090
|
|
|
|
0.1
|
|
VAR, 8.000%, 01/30/18
14
|
|
|
410
|
|
|
|
428,167
|
|
|
|
0.4
|
|
BankAmerica Capital II, Nt,
8.000%, 12/15/26
|
|
|
30
|
|
|
|
30,525
|
|
|
|
0.0
|
12
|
BankAmerica Institutional Capital B, Private Placement, Class B,
7.700%, 12/31/26
2
|
|
|
250
|
|
|
|
253,750
|
|
|
|
0.2
|
|
Barclays Bank plc, Private Placement, (United Kingdom), VAR,
7.434%, 12/15/17
2,14
|
|
|
600
|
|
|
|
612,000
|
|
|
|
0.6
|
|
Wachovia Capital Trust III, VAR, 5.570%,
08/01/11
14
|
|
|
395
|
|
|
|
361,425
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,852,957
|
|
|
|
1.6
|
|
CONSUMER FINANCE 1.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Ally Financial, Inc., 8.000%, 11/01/31
|
|
|
842
|
|
|
|
911,465
|
|
|
|
0.8
|
|
Springleaf Finance Corp.,
6.900%, 12/15/17
|
|
|
700
|
|
|
|
642,250
|
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,553,715
|
|
|
|
1.4
|
|
DIVERSIFIED FINANCIAL SERVICES 4.0%
|
|
|
|
|
|
|
|
|
|
ACE Cash Express, Inc., Private Placement, 11.000%,
02/01/19
2
|
|
|
495
|
|
|
|
496,238
|
|
|
|
0.4
|
|
Aircastle Ltd., Sr Nt, (Bermuda), 9.750%, 08/01/18
|
|
|
75
|
|
|
|
82,687
|
|
|
|
0.1
|
|
CIT Group, Inc., Private Placement, Secd Nt, 7.000%,
05/02/17
2
|
|
|
760
|
|
|
|
758,100
|
|
|
|
0.7
|
|
CNG Holdings, Inc., Private Placement,
|
|
|
|
|
|
|
|
|
|
|
|
|
12.250%, 02/15/15
2
|
|
|
140
|
|
|
|
151,550
|
|
|
|
0.1
|
|
13.750%, 08/15/15
2
|
|
|
250
|
|
|
|
273,750
|
|
|
|
0.3
|
|
Community Choice Financial, Inc., Private Placement, Sr Secd Nt, 10.750%, 05/01/19
2
|
|
|
165
|
|
|
|
167,475
|
|
|
|
0.1
|
|
Deluxe Corp., Private Placement, 7.000%,
03/15/19
2
|
|
|
156
|
|
|
|
154,440
|
|
|
|
0.1
|
|
ILFC E-Capital Trust I, Private Placement, VAR,
5.740%,
12/21/65
2
|
|
|
950
|
|
|
|
775,380
|
|
|
|
0.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVERSIFIED FINANCIAL SERVICES (continued)
|
|
ILFC E-Capital Trust II, Private Placement, VAR,
6.250%,
12/21/65
2
|
|
$
|
520
|
|
|
$
|
442,000
|
|
|
|
0.4
|
%
|
International Lease Finance Corp., 8.875%, 09/01/17
|
|
|
300
|
|
|
|
330,000
|
|
|
|
0.3
|
|
Lender Processing Services, Inc., Co Guar, 8.125%, 07/01/16
|
|
|
110
|
|
|
|
107,250
|
|
|
|
0.1
|
|
Northern Tier Energy LLC and Northern Tier Finance Corp.,
Private Placement,
10.500%, 12/01/17
2
|
|
|
100
|
|
|
|
110,250
|
|
|
|
0.1
|
|
Speedy Cash, Inc., Private Placement, Sr Secd Nt,
10.750%, 05/15/18
2
|
|
|
150
|
|
|
|
153,375
|
|
|
|
0.1
|
|
SquareTwo Financial Corp., Sr Secd Nt, 11.625%, 04/01/17
|
|
|
425
|
|
|
|
444,125
|
|
|
|
0.4
|
|
Tops Holding Corp./Tops Markets LLC, 10.125%, 10/15/15
|
|
|
115
|
|
|
|
122,044
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,568,664
|
|
|
|
4.0
|
|
INSURANCE 2.8%
|
|
|
|
|
|
|
|
|
|
American International Group, Inc., VAR, 8.175%, 05/15/58
|
|
|
520
|
|
|
|
568,152
|
|
|
|
0.5
|
|
HUB International Holdings, Inc., Private Placement,
|
|
|
|
|
|
|
|
|
|
|
|
|
9.000%, 12/15/14
2
|
|
|
250
|
|
|
|
255,000
|
|
|
|
0.2
|
|
10.250%, 06/15/15
2,10
|
|
|
450
|
|
|
|
457,875
|
|
|
|
0.4
|
|
Liberty Mutual Group, Inc., Private Placement, VAR,
10.750%,
06/15/58
2
|
|
|
1,045
|
|
|
|
1,387,237
|
|
|
|
1.2
|
|
USI Holdings Corp., Private Placement, Sr Sub Nt, 9.750%,
05/15/15
2,10
|
|
|
592
|
|
|
|
593,480
|
|
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,261,744
|
|
|
|
2.8
|
|
REAL ESTATE INVESTMENT TRUSTS (REITS) 0.9%
|
|
|
|
|
|
Aviv Healthcare Properties LP, Private Placement, Sr Nt,
7.750%, 02/15/19
2
|
|
|
220
|
|
|
|
224,950
|
|
|
|
0.2
|
|
CB Richard Ellis Services, Inc.,
6.625%, 10/15/20
|
|
|
150
|
|
|
|
154,125
|
|
|
|
0.1
|
|
CNL Income Properties, Inc., Private Placement, Sr Nt,
7.250%, 04/15/19
2
|
|
|
330
|
|
|
|
298,650
|
|
|
|
0.3
|
|
DuPont Fabros Technology LP, Nt, 8.500%, 12/15/17
|
|
|
105
|
|
|
|
114,712
|
|
|
|
0.1
|
|
See Notes to Financial Statements.
10
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REAL ESTATE INVESTMENT TRUSTS (REITS) (continued)
|
|
First Industrial LP, Sr Nt,
6.420%, 06/01/14
|
|
$
|
180
|
|
|
$
|
190,529
|
|
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
982,966
|
|
|
|
0.9
|
|
REAL ESTATE MANAGEMENT & DEVELOPMENT 0.1%
|
|
|
|
|
|
Kennedy-Wilson, Inc., Private Placement, 8.750%,
04/01/19
2
|
|
|
160
|
|
|
|
161,000
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Financials
|
|
|
|
|
|
|
12,521,109
|
|
|
|
10.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HEALTH CARE 5.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
HEALTH CARE PROVIDERS & SERVICES 3.5%
|
|
|
|
|
|
Capella Healthcare, Inc., Private Placement, 9.250%,
07/01/17
2
|
|
|
165
|
|
|
|
174,075
|
|
|
|
0.1
|
|
CHS/Community Health Systems, Inc., Co Guar, 8.875%, 07/15/15
|
|
|
336
|
|
|
|
346,080
|
|
|
|
0.3
|
|
HCA, Inc., 5.750%, 03/15/14
10
|
|
|
195
|
|
|
|
197,681
|
|
|
|
0.2
|
|
HCA, Inc., Secd Nt,
9.250%, 11/15/16
10
|
|
|
500
|
|
|
|
530,625
|
|
|
|
0.5
|
|
IASIS Healthcare LLC/IASIS Capital Corp., Private Placement, Sr Nt, 8.375%, 05/15/19
2
|
|
|
1,000
|
|
|
|
987,500
|
|
|
|
0.9
|
|
inVentiv Health, Inc., Private Placement, Sr Nt, 10.000%,
08/15/18
2
|
|
|
250
|
|
|
|
237,500
|
|
|
|
0.2
|
|
Multiplan, Inc., Private Placement, Nt, 9.875%,
09/01/18
2
|
|
|
450
|
|
|
|
478,125
|
|
|
|
0.4
|
|
OnCure Holdings, Inc.,
11.750%, 05/15/17
|
|
|
395
|
|
|
|
407,837
|
|
|
|
0.4
|
|
Radiation Therapy Services, Inc., 9.875%, 04/15/17
|
|
|
225
|
|
|
|
224,719
|
|
|
|
0.2
|
|
Tenet Healthcare Corp.,
8.875%, 07/01/19
10
|
|
|
250
|
|
|
|
275,938
|
|
|
|
0.2
|
|
Vanguard Health Holding Co. II LLC/Vanguard Holding Co. II Inc, Co Guar, 7.750%, 02/01/19
|
|
|
100
|
|
|
|
101,250
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,961,330
|
|
|
|
3.5
|
|
PHARMACEUTICALS 2.0%
|
|
|
|
|
|
|
|
|
|
Catalent Pharma Solutions, Inc., Nt, PIK, 9.500%, 04/15/15
|
|
|
152
|
|
|
|
152,352
|
|
|
|
0.1
|
|
Celtic Pharma Phinco B.V., (Bermuda), PIK, 17.000%,
06/15/12
3,9
|
|
|
2,024
|
|
|
|
792,053
|
|
|
|
0.7
|
|
Elan Finance plc/Elan Finance Corp., Private Placement, (Ireland), 8.750%, 10/15/16
2
|
|
|
500
|
|
|
|
524,375
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PHARMACEUTICALS (continued)
|
|
Elan Finance plc/Elan Finance Corp., (Ireland),
|
|
|
|
|
|
|
|
|
|
|
|
|
8.750%, 10/15/16
|
|
$
|
500
|
|
|
$
|
525,625
|
|
|
|
0.5
|
%
|
Endo Pharmaceuticals Holdings, Inc., Private Placement, Nt, Co Guar,
|
|
|
|
|
|
|
|
|
|
|
|
|
7.000%, 07/15/19
2
|
|
|
75
|
|
|
|
76,875
|
|
|
|
0.1
|
|
7.250%, 01/15/22
2
|
|
|
100
|
|
|
|
101,500
|
|
|
|
0.1
|
|
Giant Funding Corp., Private Placement, 8.250%,
02/01/18
2
|
|
|
100
|
|
|
|
104,250
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,277,030
|
|
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Health Care
|
|
|
|
|
|
|
6,238,360
|
|
|
|
5.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INDUSTRIALS 12.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
AEROSPACE & DEFENSE 1.1%
|
|
|
|
|
|
|
|
|
|
Colt Defense LLC/Colt Finance Corp.,
Sr Unsecd Nt, 8.750%, 11/15/17
|
|
|
72
|
|
|
|
62,010
|
|
|
|
0.1
|
|
CPI International Acquisition, Inc., Private Placement,
8.000%, 02/15/18
2
|
|
|
250
|
|
|
|
236,250
|
|
|
|
0.2
|
|
Ducommun, Inc., Private Placement, Sr Nt, 9.750%,
07/15/18
2
|
|
|
250
|
|
|
|
256,875
|
|
|
|
0.2
|
|
Huntington Ingalls Industries, Inc., Private Placement,
|
|
|
|
|
|
|
|
|
|
|
|
|
6.875%, 03/15/18
2
|
|
|
180
|
|
|
|
184,500
|
|
|
|
0.1
|
|
7.125%, 03/15/21
2
|
|
|
90
|
|
|
|
93,150
|
|
|
|
0.1
|
|
Kratos Defense & Security Solutions, Inc., 10.000%, 06/01/17
|
|
|
210
|
|
|
|
221,550
|
|
|
|
0.2
|
|
Kratos Defense & Security Solutions, Inc., Private Placement, Sr Secd Nt, 10.000%, 06/01/17
2
|
|
|
160
|
|
|
|
168,800
|
|
|
|
0.1
|
|
Triumph Group, Inc.,
8.625%, 07/15/18
|
|
|
80
|
|
|
|
87,700
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,310,835
|
|
|
|
1.1
|
|
AIR FREIGHT & LOGISTICS 0.1%
|
|
|
|
|
|
|
|
|
|
AMGH Merger Sub, Inc., Private Placement, 9.250%,
11/01/18
2
|
|
|
72
|
|
|
|
75,960
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AIRLINES 1.2%
|
|
|
|
|
|
|
|
|
|
American Airlines Pass Through Trust 2001-01, 7.377%, 05/23/19
|
|
|
299
|
|
|
|
256,876
|
|
|
|
0.2
|
|
Continental Airlines 2005-ERJ1 Pass Through Trust, 9.798%,
04/01/21
10
|
|
|
722
|
|
|
|
754,124
|
|
|
|
0.7
|
|
See Notes to Financial Statements.
11
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
$
|
95,419
|
|
|
|
0.1
|
%
|
7.336%, 07/02/19
2
|
|
|
82
|
|
|
|
77,192
|
|
|
|
0.0
|
12
|
UAL 2009-2B Pass Through Trust, Private Placement,
12.000%,
01/15/16
2
|
|
|
183
|
|
|
|
201,477
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,385,088
|
|
|
|
1.2
|
|
BUILDING PRODUCTS 0.3%
|
|
|
|
|
|
|
|
|
|
Associated Materials LLC, Private Placement, 9.125%,
11/01/17
2
|
|
|
75
|
|
|
|
74,812
|
|
|
|
0.1
|
|
Nortek, Inc., Private Placement, Co Guar, 8.500%,
04/15/21
2
|
|
|
235
|
|
|
|
217,375
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
292,187
|
|
|
|
0.3
|
|
COMMERCIAL SERVICES & SUPPLIES 2.6%
|
|
|
|
|
|
|
|
|
|
B-Corp. Merger Sub, Inc., Private Placement, Sr Nt,
8.250%,
06/01/19
2
|
|
|
200
|
|
|
|
198,000
|
|
|
|
0.2
|
|
CDRT Merger Sub, Inc., Private Placement, Co Guar,
8.125%,
06/01/19
2
|
|
|
225
|
|
|
|
225,000
|
|
|
|
0.2
|
|
Cenveo Corp., Nt, 8.875%, 02/01/18
|
|
|
300
|
|
|
|
291,000
|
|
|
|
0.2
|
|
Cenveo Corp., Private Placement, 10.500%,
08/15/16
2
|
|
|
500
|
|
|
|
491,250
|
|
|
|
0.4
|
|
Garda World Security Corp., Private Placement, (Canada),
9.750%, 03/15/17
2
|
|
|
180
|
|
|
|
190,350
|
|
|
|
0.2
|
|
Harland Clarke Holdings Corp.,
|
|
|
|
|
|
|
|
|
|
|
|
|
VAR, 6.000%, 05/15/15
10
|
|
|
447
|
|
|
|
373,245
|
|
|
|
0.3
|
|
9.500%, 05/15/15
|
|
|
40
|
|
|
|
36,550
|
|
|
|
0.1
|
|
Iron Mountain, Inc., 8.375%, 08/15/21
|
|
|
250
|
|
|
|
262,500
|
|
|
|
0.2
|
|
Liberty Tire Recycling, Private Placement, Nt, 11.000%,
10/01/16
2
|
|
|
275
|
|
|
|
287,375
|
|
|
|
0.2
|
|
Mobile Mini, Inc., Sr Nt, Co Guar, 7.875%, 12/01/20
|
|
|
200
|
|
|
|
206,000
|
|
|
|
0.2
|
|
Quebecor World Capital Escrow Corp., (Canada),
|
|
|
|
|
|
|
|
|
|
|
|
|
6.125%, 11/15/13
1,4
|
|
|
1,415
|
|
|
|
74,288
|
|
|
|
0.1
|
|
6.500%, 08/01/27
1,4
|
|
|
810
|
|
|
|
42,525
|
|
|
|
0.0
|
12
|
9.750%, 01/15/15
1,4
|
|
|
585
|
|
|
|
30,712
|
|
|
|
0.0
|
12
|
R.R. Donnelley & Sons Co.,
Sr Unsecd Nt,
|
|
|
|
|
|
|
|
|
|
|
|
|
7.250%, 05/15/18
|
|
|
125
|
|
|
|
125,000
|
|
|
|
0.1
|
|
7.625%, 06/15/20
|
|
|
90
|
|
|
|
88,947
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMERCIAL SERVICES & SUPPLIES (continued)
|
|
|
|
|
|
WCA Waste Corp., Private Placement, Co Guar, 7.500%,
06/15/19
2
|
|
$
|
100
|
|
|
$
|
99,500
|
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,022,242
|
|
|
|
2.6
|
|
CONSTRUCTION & ENGINEERING 1.6%
|
|
|
|
|
|
|
|
|
|
Goodman Networks, Inc., Private Placement, Sr Secd Nt,
12.125%, 07/01/18
2
|
|
|
320
|
|
|
|
318,400
|
|
|
|
0.3
|
|
Great Lakes Dredge & Dock Corp., Private Placement,
7.375%, 02/01/19
2
|
|
|
50
|
|
|
|
49,250
|
|
|
|
0.0
|
12
|
New Enterprise Stone & Lime Co., Private Placement, Nt,
11.000%, 09/01/18
2
|
|
|
750
|
|
|
|
693,750
|
|
|
|
0.6
|
|
Production Resource Group, Inc., Private Placement, Co Guar, 8.875%, 05/01/19
2
|
|
|
125
|
|
|
|
124,063
|
|
|
|
0.1
|
|
RSC Equipment Rental, Inc./RSC Holdings III LLC, Sr Nt,
9.500%, 12/01/14
10
|
|
|
271
|
|
|
|
277,775
|
|
|
|
0.3
|
|
RSC Equipment Rental, Inc./RSC Holdings III LLC, Sr Nt, Co Guar,
8.250%, 02/01/21
|
|
|
160
|
|
|
|
159,200
|
|
|
|
0.1
|
|
Tutor Perini Corp., Co Guar,
7.625%, 11/01/18
|
|
|
150
|
|
|
|
144,000
|
|
|
|
0.1
|
|
United Rentals North America, Inc.,
10.875%, 06/15/16
|
|
|
80
|
|
|
|
89,500
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,855,938
|
|
|
|
1.6
|
|
ELECTRICAL EQUIPMENT 0.4%
|
|
|
|
|
|
|
|
|
|
Belden, Inc., Sr Nt,
9.250%, 06/15/19
|
|
|
125
|
|
|
|
139,063
|
|
|
|
0.1
|
|
General Cable Corp., VAR,
2.679%, 04/01/15
|
|
|
250
|
|
|
|
245,000
|
|
|
|
0.2
|
|
International Wire Group, Inc.,
Private Placement,
9.750%,
04/15/15
2
|
|
|
100
|
|
|
|
105,500
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
489,563
|
|
|
|
0.4
|
|
ENVIRONMENTAL SERVICES 0.1%
|
|
|
|
|
|
|
|
|
|
Casella Waste Systems, Inc., Private Placement, Nt,
7.750%,
02/15/19
2
|
|
|
90
|
|
|
|
90,225
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
12
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INDUSTRIAL CONGLOMERATES 0.2%
|
|
|
|
|
|
|
|
|
|
JB Poindexter & Co., Inc., Co. Guar,
8.750%,
03/15/14
10
|
|
$
|
184
|
|
|
$
|
185,380
|
|
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACHINERY 0.9%
|
|
|
|
|
|
|
|
|
|
Boart Longyear Management Pty Ltd., Private Placement, Co Guar, (Australia),
7.000%, 04/01/21
2
|
|
|
60
|
|
|
|
61,350
|
|
|
|
0.1
|
|
Columbus McKinnon Corp., Co Guar,
7.875%, 02/01/19
|
|
|
180
|
|
|
|
182,700
|
|
|
|
0.2
|
|
CPM Holdings, Inc., Private Placement, Sr Nt,
10.625%,
09/01/14
2
|
|
|
55
|
|
|
|
59,675
|
|
|
|
0.0
|
12
|
Thermadyne Holdings Corp., Private Placement,
9.000%,
12/15/17
2
|
|
|
525
|
|
|
|
548,625
|
|
|
|
0.5
|
|
Titan International, Inc., Private Placement,
7.875%,
10/01/17
2
|
|
|
125
|
|
|
|
130,625
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
982,975
|
|
|
|
0.9
|
|
MARINE 2.3%
|
|
|
|
|
|
|
|
|
|
ACL I Corp., Private Placement, PIK,
10.625%,
02/15/16
2
|
|
|
300
|
|
|
|
280,500
|
|
|
|
0.2
|
|
American Petroleum Tankers Parent LLC/AP Tankers Co., Sr Secd Nt,
10.250%, 05/01/15
|
|
|
197
|
|
|
|
205,865
|
|
|
|
0.2
|
|
Bluewater Holding BV, Private Placement, Nt, (Netherlands), VAR,
3.275%, 07/17/14
2
|
|
|
400
|
|
|
|
316,000
|
|
|
|
0.3
|
|
CMA CGM S.A., Private Placement, Sr Unsecd Nt, (France),
8.500%, 04/15/17
2
|
|
|
225
|
|
|
|
189,000
|
|
|
|
0.2
|
|
Commercial Barge Line Co., Sr Nt,
12.500%, 07/15/17
|
|
|
350
|
|
|
|
392,875
|
|
|
|
0.3
|
|
General Maritime Corp., Sr Nt,
12.000%, 11/15/17
|
|
|
364
|
|
|
|
294,840
|
|
|
|
0.3
|
|
Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S., Inc., Private Placement, Sr Secd Nt,
8.625%, 11/01/17
2
|
|
|
140
|
|
|
|
137,900
|
|
|
|
0.1
|
|
Navios Maritime Holdings, Inc./Navios Maritime Finance U.S., Inc.,
8.875%, 11/01/17
|
|
|
377
|
|
|
|
388,310
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARINE (continued)
|
|
|
|
|
|
|
|
|
|
Navios South American Logisitcs, Inc./Navios Logistics Finance U.S., Inc., Private Placement, Co Guar,
9.250%, 04/15/19
2
|
|
$
|
125
|
|
|
$
|
125,938
|
|
|
|
0.1
|
%
|
Ultrapetrol Bahamas Ltd., 1st Mtg, (Bahamas),
9.000%,
11/24/14
10
|
|
|
310
|
|
|
|
310,775
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,642,003
|
|
|
|
2.3
|
|
ROAD & RAIL 2.0%
|
|
|
|
|
|
|
|
|
|
Avis Budget Car Rental LLC/Avis Budget Finance, Inc.,
8.250%, 01/15/19
|
|
|
150
|
|
|
|
151,875
|
|
|
|
0.2
|
|
9.625%, 03/15/18
|
|
|
240
|
|
|
|
256,200
|
|
|
|
0.2
|
|
Hertz Corp. (The), Private Placement, Co Guar,
6.750%,
04/15/19
2
|
|
|
15
|
|
|
|
14,850
|
|
|
|
0.0
|
12
|
Kansas City Southern de Mexico S.A. de C.V., Private Placement, (Mexico),
6.625%, 12/15/20
2
|
|
|
113
|
|
|
|
117,520
|
|
|
|
0.1
|
|
Kansas City Southern de Mexico S.A. de C.V., Private Placement, Sr Unsecd Nt, (Mexico),
6.125%, 06/15/21
2
|
|
|
75
|
|
|
|
75,000
|
|
|
|
0.1
|
|
Kansas City Southern Railway, Sr Nt,
8.000%, 06/01/15
|
|
|
156
|
|
|
|
167,310
|
|
|
|
0.1
|
|
Quality Distribution LLC/QD Capital Corp., PIK,
11.750%, 11/01/13
|
|
|
66
|
|
|
|
65,838
|
|
|
|
0.0
|
12
|
Quality Distribution LLC/QD Capital Corp., Private Placement,
9.875%, 11/01/18
2
|
|
|
1,100
|
|
|
|
1,120,625
|
|
|
|
1.0
|
|
RailAmerica, Inc.,
9.250%, 07/01/17
|
|
|
300
|
|
|
|
329,250
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,298,468
|
|
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Industrials
|
|
|
|
|
|
|
14,630,864
|
|
|
|
12.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INFORMATION TECHNOLOGY 6.2%
|
|
|
|
|
|
|
|
|
|
COMMUNICATIONS EQUIPMENT 1.0%
|
|
|
|
|
|
|
|
|
|
Avaya, Inc., Private Placement,
7.000%,
04/01/19
2
|
|
|
260
|
|
|
|
251,550
|
|
|
|
0.2
|
|
Avaya, Inc., Sr Nt, 9.750%, 11/01/15
|
|
|
500
|
|
|
|
510,000
|
|
|
|
0.4
|
|
Brightstar Corp., Private Placement,
9.500%,
12/01/16
2
|
|
|
260
|
|
|
|
278,200
|
|
|
|
0.2
|
|
See Notes to Financial Statements.
13
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMUNICATIONS EQUIPMENT (continued)
|
|
|
|
|
|
|
|
|
|
EH Holding Corp., Private Placement,
Sr Secd Nt,
6.500%, 06/15/19
2
|
|
$
|
88
|
|
|
$
|
89,540
|
|
|
|
0.1
|
%
|
EH Holding Corp., Private Placement, Sr Unsecd Nt,
7.625%, 06/15/21
2
|
|
|
85
|
|
|
|
86,700
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,215,990
|
|
|
|
1.0
|
|
COMPUTERS & PERIPHERALS 0.9%
|
|
|
|
|
|
|
|
|
|
Seagate HDD Cayman, Private Placement, Co Guar,
(Cayman Islands),
7.750%, 12/15/18
2
|
|
|
450
|
|
|
|
472,500
|
|
|
|
0.4
|
|
Seagate HDD Cayman, Private Placement, Sr Nt, (Cayman Islands),
6.875%, 05/01/20
2
|
|
|
170
|
|
|
|
168,725
|
|
|
|
0.2
|
|
Stratus Technologies Bermuda Ltd./Stratus Technologies, Inc.,
Sr Secd Nt, (Bermuda),
12.000%, 03/29/15
|
|
|
371
|
|
|
|
364,507
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,005,732
|
|
|
|
0.9
|
|
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 1.3%
|
|
Intcomex, Inc., 13.250%, 12/15/14
|
|
|
218
|
|
|
|
222,905
|
|
|
|
0.2
|
|
Kemet Corp., 10.500%, 05/01/18
|
|
|
375
|
|
|
|
414,375
|
|
|
|
0.3
|
|
Sanmina-SCI Corp., Private Placement, Sr Nt, VAR, 2.997%,
06/15/14
2
|
|
|
200
|
|
|
|
198,500
|
|
|
|
0.2
|
|
Smart Modular Technologies WWH, Inc., Sr Nt, (Cayman Islands), VAR,
5.805%, 04/01/12
3,9
|
|
|
423
|
|
|
|
423,013
|
|
|
|
0.4
|
|
Viasystems, Inc., Private Placement,
12.000%,
01/15/15
2
|
|
|
225
|
|
|
|
246,937
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,505,730
|
|
|
|
1.3
|
|
INTERNET SOFTWARE & SERVICES 0.2%
|
|
|
|
|
|
|
|
|
|
Equinix, Inc., Sub Nt,
8.125%, 03/01/18
|
|
|
185
|
|
|
|
201,419
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IT SERVICES 1.9%
|
|
|
|
|
|
|
|
|
|
Compucom Systems, Inc., Private Placement,
12.500%,
10/01/15
2
|
|
|
225
|
|
|
|
236,813
|
|
|
|
0.2
|
|
First Data Corp., 9.875%, 09/24/15
|
|
|
19
|
|
|
|
19,522
|
|
|
|
0.0
|
12
|
First Data Corp., Private Placement,
8.250%,
01/15/21
2
|
|
|
80
|
|
|
|
78,400
|
|
|
|
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
|
|
|
$
|
404,460
|
|
|
|
0.4
|
%
|
iGate Corp., Private Placement, Co Guar, 9.000%,
05/01/16
2
|
|
|
375
|
|
|
|
378,750
|
|
|
|
0.3
|
|
Sitel LLC/Sitel Finance Corp., Sr Unsecd Nt,
11.500%, 04/01/18
|
|
|
850
|
|
|
|
777,750
|
|
|
|
0.7
|
|
Softbrands, Inc./Atlantis Merger Sub, Inc., Private Placement, Sr Nt, 11.500%, 07/15/18
2,3,9
|
|
|
65
|
|
|
|
59,893
|
|
|
|
0.1
|
|
Stream Global Services, Inc., Sr Nt,
11.250%, 10/01/14
|
|
|
100
|
|
|
|
106,500
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,062,088
|
|
|
|
1.9
|
|
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.9%
|
|
Amkor Technology, Inc.,
7.375%, 05/01/18
|
|
|
170
|
|
|
|
172,763
|
|
|
|
0.2
|
|
Freescale Semiconductor, Inc., Private Placement, Co Guar,
8.050%, 02/01/20
2
|
|
|
385
|
|
|
|
386,925
|
|
|
|
0.3
|
|
Freescale Semiconductor, Inc., Private Placement, Nt,
9.250%,
04/15/18
2
|
|
|
105
|
|
|
|
113,138
|
|
|
|
0.1
|
|
MEMC Electronic Materials, Inc., Private Placement,
7.750%,
04/01/19
2
|
|
|
135
|
|
|
|
133,312
|
|
|
|
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,
3.028%, 10/15/13
|
|
|
98
|
|
|
|
97,510
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,015,648
|
|
|
|
0.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Information Technology
|
|
|
|
|
|
|
7,006,607
|
|
|
|
6.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MATERIALS 9.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
CHEMICALS 1.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
CF Industries, Inc.,
7.125%, 05/01/20
|
|
|
90
|
|
|
|
104,738
|
|
|
|
0.1
|
|
Chemtura Corp., Private Placement,
7.875%,
09/01/18
2
|
|
|
150
|
|
|
|
157,125
|
|
|
|
0.1
|
|
Lyondell Chemical Co.,
11.000%, 05/01/18
|
|
|
967
|
|
|
|
1,082,633
|
|
|
|
0.9
|
|
See Notes to Financial Statements.
14
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHEMICALS (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
Lyondell Chemical Co.,
Private Placement,
8.000%,
11/01/17
2
|
|
$
|
262
|
|
|
$
|
291,475
|
|
|
|
0.3
|
%
|
Nexeo Solutions LLC/Nexeo Solutions Finance Corp., Private Placement, Nt, 8.375%, 03/01/18
2
|
|
|
35
|
|
|
|
35,438
|
|
|
|
0.0
|
12
|
Omnova Solutions, Inc.,
Private Placement,
7.875%,
11/01/18
2
|
|
|
40
|
|
|
|
38,450
|
|
|
|
0.0
|
12
|
PolyOne Corp., 7.375%, 09/15/20
|
|
|
280
|
|
|
|
293,300
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,003,159
|
|
|
|
1.7
|
|
CONSTRUCTION MATERIALS 0.9%
|
|
|
|
|
|
|
|
|
|
Cemex S.A.B. de C.V., Private Placement, (Mexico),
9.000%,
01/11/18
2
|
|
|
650
|
|
|
|
661,375
|
|
|
|
0.6
|
|
Texas Industries, Inc.,
9.250%, 08/15/20
|
|
|
300
|
|
|
|
290,250
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
951,625
|
|
|
|
0.9
|
|
CONTAINERS & PACKAGING 2.2%
|
|
|
|
|
|
|
|
|
|
Ardagh Packaging Finance plc, Private Placement, Sr Sub Nt, (Ireland),
9.125%, 10/15/20
2
|
|
|
200
|
|
|
|
210,500
|
|
|
|
0.2
|
|
Berry Plastics Corp.,
9.500%, 05/15/18
|
|
|
370
|
|
|
|
367,225
|
|
|
|
0.3
|
|
Berry Plastics Corp., Co Guar,
8.250%, 11/15/15
|
|
|
165
|
|
|
|
174,075
|
|
|
|
0.1
|
|
Berry Plastics Corp., Sr Secd Nt,
9.750%, 01/15/21
|
|
|
300
|
|
|
|
290,250
|
|
|
|
0.3
|
|
Constar International, Inc.,
11.000%,
12/31/17
3,9
|
|
|
302
|
|
|
|
302,273
|
|
|
|
0.3
|
|
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu, Private Placement, Nt,
|
|
|
|
|
|
|
|
|
|
|
|
|
8.250%, 02/15/21
2
|
|
|
300
|
|
|
|
280,500
|
|
|
|
0.3
|
|
8.500%, 05/15/18
2
|
|
|
400
|
|
|
|
393,000
|
|
|
|
0.3
|
|
9.000%, 04/15/19
2
|
|
|
125
|
|
|
|
123,437
|
|
|
|
0.1
|
|
Viskase Cos., Inc., Private Placement, Sr Nt, 9.875%,
01/15/18
2
|
|
|
350
|
|
|
|
364,875
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,506,135
|
|
|
|
2.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
METALS & MINING 2.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
APERAM, Private Placement, Sr Unsecd Nt, (Luxembourg),
7.750%, 04/01/18
2
|
|
$
|
150
|
|
|
$
|
151,125
|
|
|
|
0.1
|
%
|
Constellation Enterprises LLC,
Private Placement,
10.625%,
02/01/16
2
|
|
|
275
|
|
|
|
280,844
|
|
|
|
0.3
|
|
Edgen Murray Corp., Sr Nt,
12.250%, 01/15/15
|
|
|
250
|
|
|
|
251,875
|
|
|
|
0.2
|
|
FMG Resources August 2006 Pty Ltd., Private Placement, (Australia),
7.000%, 11/01/15
2
|
|
|
100
|
|
|
|
102,000
|
|
|
|
0.1
|
|
FMG Resources August 2006 Pty Ltd., Private Placement, Co Guar, (Australia), 6.875%, 02/01/18
2
|
|
|
45
|
|
|
|
45,675
|
|
|
|
0.1
|
|
JMC Steel Group, Private Placement,
8.250%,
03/15/18
2
|
|
|
100
|
|
|
|
101,500
|
|
|
|
0.1
|
|
Murray Energy Corp., Private Placement,
10.250%,
10/15/15
2
|
|
|
330
|
|
|
|
346,500
|
|
|
|
0.3
|
|
Noranda Aluminum Acquisition Corp., Sr Nt, PIK,
4.417%, 05/15/15
|
|
|
487
|
|
|
|
461,584
|
|
|
|
0.4
|
|
Novelis, Inc., Co Guar, (Canada),
8.750%, 12/15/20
|
|
|
139
|
|
|
|
150,120
|
|
|
|
0.1
|
|
Severstal Columbus LLC,
10.250%, 02/15/18
|
|
|
100
|
|
|
|
110,500
|
|
|
|
0.1
|
|
Taseko Mines Ltd., Co Guar, (Canada),
7.750%, 04/15/19
|
|
|
50
|
|
|
|
50,375
|
|
|
|
0.1
|
|
Thompson Creek Metals Co., Inc., Private Placement, Sr Nt,
Co Guar, (Canada),
7.375%, 06/01/18
2
|
|
|
150
|
|
|
|
147,000
|
|
|
|
0.1
|
|
Wolverine Tube, Inc., Sr Nt,
15.000%,
03/31/12
1,4
|
|
|
983
|
|
|
|
491,516
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,690,614
|
|
|
|
2.4
|
|
PAPER & FOREST PRODUCTS 2.2%
|
|
|
|
|
|
|
|
|
|
AbitibiBowater, Inc., Private Placement,
10.250%,
10/15/18
2
|
|
|
260
|
|
|
|
281,450
|
|
|
|
0.3
|
|
Abitibi-Consolidated Co. of Canada, Escrow, (Canada),
|
|
|
|
|
|
|
|
|
|
|
|
|
6.000%, 06/20/13
1,4
|
|
|
1,331
|
|
|
|
6,655
|
|
|
|
0.0
|
12
|
7.500%, 04/01/28
1,4
|
|
|
287
|
|
|
|
1,435
|
|
|
|
0.0
|
12
|
See Notes to Financial Statements.
15
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAPER & FOREST PRODUCTS (continued)
|
|
|
|
|
|
|
|
|
|
Abitibi-Consolidated Co. of Canada, Sr Nt, Escrow, (Canada),
|
|
|
|
|
|
|
|
|
|
|
|
|
7.750%, 06/15/11
1,4
|
|
$
|
479
|
|
|
$
|
2,395
|
|
|
|
0.0
|
%
12
|
8.375%, 04/01/15
1,4
|
|
|
2,485
|
|
|
|
12,425
|
|
|
|
0.0
|
12
|
8.850%, 08/01/30
1,4
|
|
|
102
|
|
|
|
510
|
|
|
|
0.0
|
12
|
Appleton Papers, Inc., Private Placement, Sr Secd Nt,
10.500%, 06/15/15
2
|
|
|
250
|
|
|
|
260,625
|
|
|
|
0.2
|
|
Bowater Canada Finance Corp.,
Nt, (Canada),
7.950%,
11/15/11
1,4
|
|
|
500
|
|
|
|
155,000
|
|
|
|
0.2
|
|
Longview Fibre Paper & Packaging, Inc., Private Placement, Sr Secd Nt,
8.000%, 06/01/16
2
|
|
|
200
|
|
|
|
201,000
|
|
|
|
0.2
|
|
NewPage Corp., Sr Nt,
10.000%, 05/01/12
|
|
|
500
|
|
|
|
150,000
|
|
|
|
0.1
|
|
NewPage Corp., Sr Secd Nt,
11.375%, 12/31/14
|
|
|
1,500
|
|
|
|
1,398,750
|
|
|
|
1.2
|
|
Smurfit-Stone Container Corp., Sr Nt,
8.000%,
03/15/17
1,3,4,9
|
|
|
1,229
|
|
|
|
30,725
|
|
|
|
0.0
|
12
|
Smurfit-Stone Container Enterprises, Inc., 8.375%,
07/01/12
1,3,4,9
|
|
|
448
|
|
|
|
11,200
|
|
|
|
0.0
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,512,170
|
|
|
|
2.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Materials
|
|
|
|
|
|
|
10,663,703
|
|
|
|
9.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TELECOMMUNICATION SERVICES 8.3%
|
|
|
|
|
|
|
|
|
|
DIVERSIFIED TELECOMMUNICATION SERVICES 4.1%
|
|
|
|
|
|
Cincinnati Bell, Inc., 8.750%, 03/15/18
|
|
|
120
|
|
|
|
114,000
|
|
|
|
0.1
|
|
Clearwire Communications LLC/Clearwire Finance, Inc.,
Private Placement,
|
|
|
|
|
|
|
|
|
|
|
|
|
12.000%, 12/01/15
2
|
|
|
113
|
|
|
|
120,627
|
|
|
|
0.1
|
|
12.000%, 12/01/15
2
|
|
|
1,387
|
|
|
|
1,485,824
|
|
|
|
1.3
|
|
Frontier Communications Corp., Sr Nt,
8.250%, 04/15/17
|
|
|
115
|
|
|
|
125,062
|
|
|
|
0.1
|
|
8.500%, 04/15/20
|
|
|
115
|
|
|
|
125,350
|
|
|
|
0.1
|
|
8.750%, 04/15/22
|
|
|
110
|
|
|
|
119,900
|
|
|
|
0.1
|
|
Global Crossing Ltd., (Bermuda),
12.000%, 09/15/15
|
|
|
35
|
|
|
|
40,775
|
|
|
|
0.0
|
12
|
Level 3 Escrow, Inc., Private Placement, Sr Unsecd Nt,
8.125%, 07/01/19
2
|
|
|
600
|
|
|
|
603,000
|
|
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVERSIFIED TELECOMMUNICATION SERVICES (continued)
|
|
|
|
|
|
Level 3 Financing, Inc., Co. Guar,
9.250%,
11/01/14
10
|
|
$
|
45
|
|
|
$
|
46,294
|
|
|
|
0.1
|
%
|
Level 3 Financing, Inc., Private Placement, Sr Nt,
9.375%,
04/01/19
2
|
|
|
295
|
|
|
|
303,850
|
|
|
|
0.3
|
|
PAETEC Holding Corp., Sr Secd Nt,
8.875%, 06/30/17
|
|
|
200
|
|
|
|
210,000
|
|
|
|
0.2
|
|
Qwest Communications International, Inc., Sr Secd Nt,
7.125%, 04/01/18
|
|
|
200
|
|
|
|
214,750
|
|
|
|
0.2
|
|
Qwest Corp., Sr Nt,
7.625%, 06/15/15
10
|
|
|
515
|
|
|
|
581,950
|
|
|
|
0.5
|
|
Windstream Corp.,
|
|
|
|
|
|
|
|
|
|
|
|
|
7.875%, 11/01/17
|
|
|
320
|
|
|
|
339,600
|
|
|
|
0.3
|
|
8.125%, 09/01/18
|
|
|
250
|
|
|
|
265,000
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,695,982
|
|
|
|
4.1
|
|
WIRELESS TELECOMMUNICATION SERVICES 4.2%
|
|
|
|
|
|
Cricket Communications, Inc.,
|
|
|
|
|
|
|
|
|
|
|
|
|
7.750%, 05/15/16
|
|
|
180
|
|
|
|
190,800
|
|
|
|
0.2
|
|
7.750%, 10/15/20
|
|
|
375
|
|
|
|
367,500
|
|
|
|
0.3
|
|
MetroPCS Wireless, Inc.,
7.875%, 09/01/18
|
|
|
145
|
|
|
|
153,519
|
|
|
|
0.1
|
|
MetroPCS Wireless, Inc., Sr Nt, Co Guar, 6.625%, 11/15/20
|
|
|
200
|
|
|
|
198,000
|
|
|
|
0.2
|
|
Nextel Communications, Inc.,
7.375%,
08/01/15
10
|
|
|
1,025
|
|
|
|
1,025,000
|
|
|
|
0.9
|
|
NII Capital Corp., Sr Nt,
|
|
|
|
|
|
|
|
|
|
|
|
|
8.875%, 12/15/19
|
|
|
315
|
|
|
|
347,681
|
|
|
|
0.3
|
|
10.000%, 08/15/16
|
|
|
135
|
|
|
|
156,600
|
|
|
|
0.2
|
|
Sprint Nextel Corp., Nt,
6.000%, 12/01/16
10
|
|
|
1,400
|
|
|
|
1,398,250
|
|
|
|
1.2
|
|
VimpelCom Holdings B.V., Private Placement, Co Guar, (Netherlands),
6.255%, 03/01/17
2
|
|
|
200
|
|
|
|
199,620
|
|
|
|
0.2
|
|
VimpelCom Holdings B.V., Private Placement, Nt, Co Guar, (Netherlands),
7.504%, 03/01/22
2
|
|
|
200
|
|
|
|
200,200
|
|
|
|
0.2
|
|
Wind Acquisition Finance S.A., Private Placement, (Luxembourg),
7.250%, 02/15/18
2
|
|
|
200
|
|
|
|
208,000
|
|
|
|
0.2
|
|
See Notes to Financial Statements.
16
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIRELESS TELECOMMUNICATION SERVICES (continued)
|
|
|
|
|
|
Wind Acquisition Holdings Finance S.A., Private Placement, Sr Secd Nt, (Luxembourg), PIK,
12.250%, 07/15/17
2
|
|
$
|
233
|
|
|
$
|
268,650
|
|
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,713,820
|
|
|
|
4.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Telecommunication Services
|
|
|
|
|
|
|
9,409,802
|
|
|
|
8.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UTILITIES 5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAS UTILITIES 0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Genesis Energy LP/Genesis Energy Finance Corp., Private Placement,
7.875%, 12/15/18
2
|
|
|
160
|
|
|
|
159,200
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 4.1%
|
|
Calpine Construction Finance Co. LP and CCFC Finance Corp.,
Private Placement,
8.000%, 06/01/16
2
|
|
|
200
|
|
|
|
216,000
|
|
|
|
0.2
|
|
Calpine Corp., Private Placement, Sr Nt,
7.250%,
10/15/17
2
|
|
|
354
|
|
|
|
359,310
|
|
|
|
0.3
|
|
Calpine Generating Co. LLC, Secd Nt,
0.000%,
04/01/11
1,4
|
|
|
1,000
|
|
|
|
140,000
|
|
|
|
0.1
|
|
Dynegy Holdings, Inc., Sr Nt,
7.750%, 06/01/19
|
|
|
750
|
|
|
|
545,625
|
|
|
|
0.5
|
|
Dynegy Holdings, Inc., Sr Unsecd Nt,
7.125%, 05/15/18
|
|
|
500
|
|
|
|
345,000
|
|
|
|
0.3
|
|
Dynegy Roseton/Danskammer Pass Through Trust, Sr Unsecd Nt,
7.670%, 11/08/16
|
|
|
1,000
|
|
|
|
890,000
|
|
|
|
0.8
|
|
Edison Mission Energy,
7.200%, 05/15/19
|
|
|
500
|
|
|
|
397,500
|
|
|
|
0.3
|
|
Edison Mission Energy, Sr Nt,
7.750%, 06/15/16
|
|
|
1,000
|
|
|
|
900,000
|
|
|
|
0.8
|
|
First Wind Capital LLC, Private Placement, Sr Secd Nt,
10.250%, 06/01/18
2
|
|
|
70
|
|
|
|
70,700
|
|
|
|
0.0
|
12
|
GenOn Energy, Inc., Sr Unsecd Nt,
9.875%, 10/15/20
|
|
|
290
|
|
|
|
303,050
|
|
|
|
0.3
|
|
Homer City Funding LLC,
8.137%, 10/01/19
|
|
|
99
|
|
|
|
90,768
|
|
|
|
0.1
|
|
Midwest Generation LLC,
8.560%, 01/02/16
|
|
|
221
|
|
|
|
226,332
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (continued)
|
|
Texas Competitive Electric Holdings Co. LLC, Sr Nt,
10.250%, 11/01/15
|
|
$
|
350
|
|
|
$
|
211,750
|
|
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,696,035
|
|
|
|
4.1
|
|
MULTI-UTILITIES 0.8%
|
|
|
|
|
|
|
|
|
|
Energy Future Holdings Corp.,
10.875%, 11/01/17
|
|
|
89
|
|
|
|
76,095
|
|
|
|
0.1
|
|
Energy Future Intermediate Holding Co. LLC/EFIH Finance, Inc.,
10.000%, 12/01/20
|
|
|
730
|
|
|
|
778,516
|
|
|
|
0.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
854,611
|
|
|
|
0.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Utilities
|
|
|
|
|
|
|
5,709,846
|
|
|
|
5.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Corporate Bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
(cost $119,241,229)
|
|
|
|
|
|
|
121,217,880
|
|
|
|
106.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN PARTICIPATIONS & ASSIGNMENTS 19.5%
|
|
|
|
|
|
CONSUMER DISCRETIONARY 7.0%
|
|
|
|
|
|
|
|
|
|
AUTOMOBILES 0.6%
|
|
|
|
|
|
|
|
|
|
Chrysler, Term Loan B, VAR,
6.000%, 05/24/17
|
|
|
665
|
|
|
|
649,413
|
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAMING 1.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Boyd Gaming Corp., Term Loan, VAR,
3.686%, 12/17/15
|
|
|
237
|
|
|
|
229,068
|
|
|
|
0.2
|
|
Caesars Entertainment Operating Co., Inc., Term B-2 Loan,
VAR, 3.186%, 01/28/15
|
|
|
312
|
|
|
|
280,573
|
|
|
|
0.3
|
|
CCM Merger, Inc., Term Loan, VAR,
7.000%, 03/01/17
|
|
|
386
|
|
|
|
390,334
|
|
|
|
0.3
|
|
Golden Nugget, Inc., Additional Term Advance,
VAR, 3.190%, 06/30/14
|
|
|
9
|
|
|
|
8,110
|
|
|
|
0.0
|
12
|
VAR, 3.190%, 06/30/14
|
|
|
3
|
|
|
|
2,717
|
|
|
|
0.0
|
12
|
VAR, 3.190%, 06/30/14
|
|
|
3
|
|
|
|
2,683
|
|
|
|
0.0
|
12
|
VAR, 3.190%, 06/30/14
|
|
|
3
|
|
|
|
2,405
|
|
|
|
0.0
|
12
|
Golden Nugget, Inc., Term Advance,
VAR, 3.190%, 06/30/14
|
|
|
15
|
|
|
|
13,286
|
|
|
|
0.0
|
12
|
VAR, 3.190%, 06/30/14
|
|
|
17
|
|
|
|
14,671
|
|
|
|
0.0
|
12
|
Harrahs Operating Co., Term B-2 Loan, VAR, 3.274%, 01/28/15
|
|
|
694
|
|
|
|
624,952
|
|
|
|
0.6
|
|
See Notes to Financial Statements.
17
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAMING (continued)
|
|
|
|
|
|
Isle of Capri Casinos, Inc.,
Term Loan B, VAR,
4.750%, 11/01/13
|
|
$
|
95
|
|
|
$
|
95,376
|
|
|
|
0.1
|
%
|
VAR, 4.750%, 11/01/13
|
|
|
5
|
|
|
|
4,769
|
|
|
|
0.0
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,668,944
|
|
|
|
1.5
|
|
HOTELS, RESTAURANTS & LEISURE 0.3%
|
|
|
|
|
|
|
|
|
|
Outback Steakhouse, Inc., Prefunded RC Commitment,
VAR, 0.069%, 06/14/13
|
|
|
5
|
|
|
|
5,130
|
|
|
|
0.0
|
12
|
Outback Steakhouse, Inc.,
Term Loan B,
VAR, 2.500%, 06/14/14
|
|
|
388
|
|
|
|
370,956
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
376,086
|
|
|
|
0.3
|
|
MEDIA 3.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Clear Channel Communications, Inc., Term Loan B,
VAR, 3.836%, 01/29/16
|
|
|
572
|
|
|
|
483,921
|
|
|
|
0.4
|
|
Entercom Radio LLC, Term Loan A,
VAR, 1.311%, 06/30/12
|
|
|
381
|
|
|
|
371,213
|
|
|
|
0.3
|
|
VAR, 3.375%, 06/30/12
|
|
|
6
|
|
|
|
5,552
|
|
|
|
0.0
|
12
|
High Plains Broadcasting Operating Co. LLC, Term Loan,
VAR, 9.000%, 09/14/16
|
|
|
190
|
|
|
|
189,806
|
|
|
|
0.2
|
|
Hubbard Radio LLC,
1st Lien Term Loan B,
VAR, 5.250%, 04/28/17
|
|
|
100
|
|
|
|
100,531
|
|
|
|
0.1
|
|
Hubbard Radio LLC, 2nd Lien Term Loan C, VAR,
8.750%, 04/30/18
|
|
|
100
|
|
|
|
101,583
|
|
|
|
0.1
|
|
Media General, Inc., Term Loan,
VAR, 4.686%, 03/29/13
|
|
|
8
|
|
|
|
7,275
|
|
|
|
0.0
|
12
|
VAR, 4.754%, 03/29/13
|
|
|
47
|
|
|
|
42,225
|
|
|
|
0.1
|
|
Newport Television LLC, Term Loan, VAR, 9.000%, 09/14/16
|
|
|
694
|
|
|
|
694,403
|
|
|
|
0.6
|
|
Newsday, Fixed Rate Term Loan, VAR,
10.500%, 08/01/13
|
|
|
250
|
|
|
|
263,908
|
|
|
|
0.2
|
|
R.H. Donnelley, Inc., Exit Term Loan,
VAR, 9.000%, 10/24/14
|
|
|
184
|
|
|
|
125,157
|
|
|
|
0.1
|
|
VAR, 9.000%, 10/24/14
|
|
|
177
|
|
|
|
120,095
|
|
|
|
0.1
|
|
VAR, 9.000%, 10/24/14
|
|
|
45
|
|
|
|
30,517
|
|
|
|
0.1
|
|
Radio One, 1st Lien Term Loan B,
VAR, 7.500%, 03/31/16
|
|
|
249
|
|
|
|
251,402
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEDIA (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
TL Acquisitions Inc., Term Loan,
VAR, 2.500%, 07/03/14
|
|
$
|
737
|
|
|
$
|
662,518
|
|
|
|
0.6
|
%
|
Univision Communications, Inc., Initial Term Loan, VAR,
2.186%, 09/29/14
|
|
|
361
|
|
|
|
345,826
|
|
|
|
0.3
|
|
Vertis, Inc., 1st Lien Term Loan,
VAR, 11.750%, 12/21/15
|
|
|
282
|
|
|
|
260,687
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,056,619
|
|
|
|
3.6
|
|
SPECIALTY RETAIL 0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Claires Stores, Term Loan B,
VAR, 2.996%, 05/29/14
|
|
|
676
|
|
|
|
618,981
|
|
|
|
0.5
|
|
VAR, 3.023%, 05/29/14
|
|
|
142
|
|
|
|
129,724
|
|
|
|
0.1
|
|
J. Crew, 1st Lien Term Loan,
VAR, 4.750%, 03/07/18
|
|
|
168
|
|
|
|
160,987
|
|
|
|
0.1
|
|
VAR, 4.750%, 03/07/18
|
|
|
56
|
|
|
|
53,663
|
|
|
|
0.1
|
|
VAR, 4.750%, 03/07/18
|
|
|
1
|
|
|
|
538
|
|
|
|
0.0
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
963,893
|
|
|
|
0.8
|
|
TEXTILES, APPAREL & LUXURY GOODS 0.2%
|
|
|
|
|
|
BCBG Max Azaria, Term Loan, 05/20/15^
|
|
|
200
|
|
|
|
191,750
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consumer Discretionary
|
|
|
|
|
|
|
7,906,705
|
|
|
|
7.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSUMER STAPLES 0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOD & STAPLES RETAILING 0.4%
|
|
|
|
|
|
Rite Aid Corp., 1st Lien Term Loan 5,
VAR, 4.500%, 03/03/18
|
|
|
486
|
|
|
|
478,304
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERSONAL PRODUCTS 0.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Targus, 1st Lien Term Loan,
VAR, 11.000%, 05/24/16
|
|
|
500
|
|
|
|
490,000
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consumer Staples
|
|
|
|
|
|
|
968,304
|
|
|
|
0.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENERGY 0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
OIL, GAS & CONSUMABLE FUELS 0.2%
|
|
|
|
|
|
|
|
|
|
Big West Oil, Term Loan B,
VAR, 7.000%, 03/31/16
|
|
|
116
|
|
|
|
116,609
|
|
|
|
0.1
|
|
Western Refinancing, Inc.,
Term Loan B,
VAR, 7.500%, 03/15/17
|
|
|
100
|
|
|
|
100,831
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Energy
|
|
|
|
|
|
|
217,440
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
18
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIALS 2.6%
|
|
|
|
|
|
|
|
|
|
DIVERSIFIED FINANCIAL SERVICES 2.1%
|
|
|
|
|
|
|
|
|
|
Capmark Financial Group,
U.S. Term Loan,
VAR, 5.250%,
03/23/11
1,4
|
|
$
|
2,285
|
|
|
$
|
1,297,069
|
|
|
|
1.1
|
%
|
Capmark Financial Group, Unsecured Bridge Loan, VAR,
5.250%,
03/23/11
1,4
|
|
|
175
|
|
|
|
99,531
|
|
|
|
0.1
|
|
CIT Group, Inc., Tranche 3 Term Loan,
VAR, 6.250%, 08/11/15
|
|
|
126
|
|
|
|
126,693
|
|
|
|
0.1
|
|
VAR, 6.250%, 08/11/15
|
|
|
33
|
|
|
|
32,982
|
|
|
|
0.0
|
12
|
VAR, 6.250%, 08/11/15
|
|
|
30
|
|
|
|
30,030
|
|
|
|
0.0
|
12
|
VAR, 6.250%, 08/11/15
|
|
|
30
|
|
|
|
30,030
|
|
|
|
0.0
|
12
|
VAR, 6.250%, 08/11/15
|
|
|
16
|
|
|
|
16,491
|
|
|
|
0.0
|
12
|
VAR, 6.250%, 08/11/15
|
|
|
125
|
|
|
|
126,008
|
|
|
|
0.1
|
|
VAR, 6.250%, 08/11/15
|
|
|
54
|
|
|
|
53,833
|
|
|
|
0.1
|
|
VAR, 6.250%, 08/11/15
|
|
|
49
|
|
|
|
49,226
|
|
|
|
0.1
|
|
VAR, 6.250%, 08/11/15
|
|
|
41
|
|
|
|
41,463
|
|
|
|
0.1
|
|
Clarke American Corp., Term Loan B,
VAR, 2.686%, 06/30/14
|
|
|
71
|
|
|
|
63,200
|
|
|
|
0.1
|
|
VAR, 2.686%, 06/30/14
|
|
|
97
|
|
|
|
86,746
|
|
|
|
0.1
|
|
VAR, 2.746%, 06/30/14
|
|
|
152
|
|
|
|
135,694
|
|
|
|
0.1
|
|
VAR, 2.746%, 06/30/14
|
|
|
59
|
|
|
|
52,419
|
|
|
|
0.0
|
12
|
VAR, 2.746%, 06/30/14
|
|
|
101
|
|
|
|
90,215
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,331,630
|
|
|
|
2.1
|
|
REAL ESTATE INVESTMENT TRUSTS (REITS) 0.5%
|
|
|
|
|
|
CB Richard Ellis Services, Inc., Delayed Draw Term Loan D, 09/04/19^
|
|
|
107
|
|
|
|
105,929
|
|
|
|
0.1
|
|
I-Star, Term Loan A-1,
VAR, 5.000%, 06/28/13
|
|
|
211
|
|
|
|
208,031
|
|
|
|
0.2
|
|
VAR, 5.000%, 06/28/13
|
|
|
186
|
|
|
|
183,030
|
|
|
|
0.1
|
|
Tishman Speyer Office, Term Loan, 05/04/12^
|
|
|
140
|
|
|
|
139,825
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
636,815
|
|
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Financials
|
|
|
|
|
|
|
2,968,445
|
|
|
|
2.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HEALTH CARE 0.2%
|
|
|
|
|
|
|
|
|
|
HEALTH CARE PROVIDERS & SERVICES 0.1%
|
|
|
|
|
|
Inventive Health, Consolidated Term Loan, VAR,
4.750%, 08/04/16
|
|
|
100
|
|
|
|
98,944
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PHARMACEUTICALS 0.1%
|
|
|
|
|
|
|
|
|
|
Axcan Pharmaceuticals, Term Loan,
VAR, 5.500%, 02/10/17
|
|
$
|
11
|
|
|
$
|
11,016
|
|
|
|
0.0
|
%
12
|
VAR, 5.500%, 02/10/17
|
|
|
103
|
|
|
|
102,082
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
113,098
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Health Care
|
|
|
|
|
|
|
212,042
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INDUSTRIALS 2.7%
|
|
|
|
|
|
|
|
|
|
AIRLINES 0.4%
|
|
|
|
|
|
|
|
|
|
Delta Air Lines, Inc., Term Loan,
VAR, 4.250%, 03/07/16
|
|
|
499
|
|
|
|
490,960
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUILDING PRODUCTS 0.8%
|
|
|
|
|
|
|
|
|
|
Jacuzzi Brands, Inc., 1st Lien Synthetic Credit Facility, VAR,
0.146%, 02/07/14
|
|
|
81
|
|
|
|
62,971
|
|
|
|
0.1
|
|
Jacuzzi Brands, Inc., 1st Lien Term Loan B, VAR,
2.523%, 02/07/14
|
|
|
888
|
|
|
|
689,043
|
|
|
|
0.6
|
|
Jacuzzi Luxco S.A.R.L.,
New Term Loan, VAR,
6.246%,
11/15/13
3,9
|
|
|
124
|
|
|
|
124,269
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
876,283
|
|
|
|
0.8
|
|
COMMERCIAL SERVICES & SUPPLIES 0.5%
|
|
|
|
|
|
|
|
|
|
Cenveo Corp., Term Loan, VAR,
6.250%, 12/21/16
|
|
|
199
|
|
|
|
200,369
|
|
|
|
0.2
|
|
SCH Group, 1st Lien Term Loan,
VAR, 6.625%, 04/28/17
|
|
|
125
|
|
|
|
120,375
|
|
|
|
0.1
|
|
SCH Group, 2nd Lien Term Loan, VAR,
10.500%, 04/30/18
|
|
|
225
|
|
|
|
214,173
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
534,917
|
|
|
|
0.5
|
|
INDUSTRIAL CONGLOMERATES 1.0%
|
|
|
|
|
|
|
|
|
|
BOC Edwards, Extended Term Loan,
VAR, 5.500%, 05/31/16
|
|
|
1,178
|
|
|
|
1,174,662
|
|
|
|
1.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Industrials
|
|
|
|
|
|
|
3,076,822
|
|
|
|
2.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INFORMATION TECHNOLOGY 2.5%
|
|
|
|
|
|
|
|
|
|
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 0.1%
|
|
Sensus USA, Inc., 1st Lien Term Loan,
VAR, 4.750%, 05/09/17
|
|
|
100
|
|
|
|
99,906
|
|
|
|
0.1
|
|
Sensus USA, Inc., 2nd Lien Term Loan,
VAR, 8.500%, 05/09/18
|
|
|
50
|
|
|
|
50,541
|
|
|
|
0.0
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
150,447
|
|
|
|
0.1
|
|
See Notes to Financial Statements.
19
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Par (000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IT SERVICES 2.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Compucom Systems, Inc., Term Loan,
VAR,
3.690%, 08/25/14
3,9
|
|
$
|
770
|
|
|
$
|
749,326
|
|
|
|
0.6
|
%
|
First Data Corp., Initial Tranche B-1 Term Loan, VAR, 2.936%, 09/24/14
|
|
|
350
|
|
|
|
323,726
|
|
|
|
0.3
|
|
First Data Corp., Initial Tranche B-3 Term Loan, VAR, 2.936%, 09/24/14
|
|
|
1,313
|
|
|
|
1,214,986
|
|
|
|
1.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,288,038
|
|
|
|
2.0
|
|
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.4%
|
|
|
|
|
|
Freescale Semiconductor, Inc., Extended Maturity Term Loan,
VAR, 4.441%, 12/01/16
|
|
|
389
|
|
|
|
386,088
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Information Technology
|
|
|
|
|
|
|
2,824,573
|
|
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MATERIALS 1.7%
|
|
|
|
|
|
|
|
|
|
CHEMICALS 1.3%
|
|
|
|
|
|
AZ Chem US, Inc. (Arizona Chemical), Term Loan, VAR, 4.750%, 11/21/16
|
|
|
98
|
|
|
|
98,275
|
|
|
|
0.1
|
|
Cristal Inorganic Chemicals (Millenium), 2nd Lien Term Loan, VAR,
5.996%, 11/15/14
|
|
|
500
|
|
|
|
495,155
|
|
|
|
0.4
|
|
Nexeo Solutions, Term Loan,
VAR, 5.000%, 09/08/17
|
|
|
38
|
|
|
|
38,037
|
|
|
|
0.1
|
|
VAR, 5.000%, 09/08/17
|
|
|
31
|
|
|
|
30,628
|
|
|
|
0.0
|
12
|
VAR, 5.000%, 09/08/17
|
|
|
31
|
|
|
|
30,628
|
|
|
|
0.0
|
12
|
Rentech Energy Midwest Corp. Term Loan, VAR, 10.000%, 06/10/16
|
|
|
430
|
|
|
|
425,700
|
|
|
|
0.4
|
|
Styron, 1st Lien Term Loan,
VAR, 6.000%, 08/02/17
|
|
|
249
|
|
|
|
248,347
|
|
|
|
0.2
|
|
Univar, Inc., Term Loan B,
VAR, 5.000%, 06/30/17
|
|
|
164
|
|
|
|
163,747
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,530,517
|
|
|
|
1.3
|
|
CONTAINERS & PACKAGING 0.1%
|
|
|
|
|
|
|
|
|
|
Reynolds Group Holdings, U.S. Term Loan, VAR,
4.250%, 02/09/18
|
|
|
52
|
|
|
|
51,486
|
|
|
|
0.1
|
|
4.250%, 02/09/18
|
|
|
46
|
|
|
|
45,718
|
|
|
|
0.0
|
12
|
4.250%, 02/09/18
|
|
|
27
|
|
|
|
26,632
|
|
|
|
0.0
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
123,836
|
|
|
|
0.1
|
|
METALS & MINING 0.1%
|
|
|
|
|
|
|
|
|
|
American Rock Salt, 1st Lien Term Loan, VAR, 5.500%, 04/25/17
|
|
|
125
|
|
|
|
124,922
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Shares/Par
(000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAPER & FOREST PRODUCTS 0.2%
|
|
|
|
|
|
|
|
|
|
Xerium Technologies, Inc., Initial U.S. Term Loan, VAR,
5.500%, 05/26/17
|
|
$
|
200
|
|
|
$
|
200,312
|
|
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Materials
|
|
|
|
|
|
|
1,979,587
|
|
|
|
1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TELECOMMUNICATION SERVICES 0.4%
|
|
|
|
|
|
|
|
|
|
DIVERSIFIED TELECOMMUNICATION SERVICES 0.4%
|
|
|
|
|
|
Level 3 Communications, Tranche A Term Loan,
VAR, 2.533%, 03/13/14
|
|
|
179
|
|
|
|
172,823
|
|
|
|
0.1
|
|
VAR, 2.533%, 03/13/14
|
|
|
71
|
|
|
|
69,130
|
|
|
|
0.1
|
|
Level 3 Communications, Tranche B Term Loan, VAR, 11.500%, 03/13/14
|
|
|
250
|
|
|
|
263,985
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Telecommunication Services
|
|
|
|
505,938
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UTILITIES 1.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 1.4%
|
|
Texas Competitive Electric Holdings Co. LLC, Extended Term Loan,
|
|
|
|
|
|
|
|
|
|
|
|
|
VAR, 4.690%, 10/10/17
|
|
|
330
|
|
|
|
257,848
|
|
|
|
0.2
|
|
VAR, 4.768%, 10/10/17
|
|
|
350
|
|
|
|
273,609
|
|
|
|
0.3
|
|
Texas Competitive Electric Holdings Co. LLC, Non-Extended Term Loan, VAR, 3.690%, 10/10/14
|
|
|
680
|
|
|
|
574,741
|
|
|
|
0.5
|
|
TPF Generation Holdings LLC, 2nd Lien Term Loan, VAR, 4.496%, 12/15/14
|
|
|
500
|
|
|
|
480,625
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Utilities
|
|
|
|
|
|
|
1,586,823
|
|
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loan Participations & Assignments
|
|
|
|
|
|
|
|
|
|
(cost $21,784,917)
|
|
|
|
|
|
|
22,246,679
|
|
|
|
19.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET-BACKED SECURITIES 1.3%
|
|
|
|
|
|
|
|
|
|
Countrywide Asset-Backed Certificates, Series 2004-13, Class MV8, VAR,
1.886%, 01/25/35
3,9
|
|
|
115
|
|
|
|
6,571
|
|
|
|
0.0
|
12
|
Long Beach Mortgage Loan Trust, Series 2004-5, Class M6, VAR,
2.686%, 09/25/34
3,9
|
|
|
53
|
|
|
|
11,769
|
|
|
|
0.0
|
12
|
See Notes to Financial Statements.
20
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Shares/Par
(000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET-BACKED SECURITIES (continued)
|
|
|
|
|
|
|
|
|
|
Unipac IX LLC,
13.000%, 04/11/13
3,9
|
|
$
|
1,500
|
|
|
$
|
1,480,187
|
|
|
|
1.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Asset-Backed Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
(cost $1,641,310)
|
|
|
|
|
|
|
1,498,527
|
|
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fixed Income Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
(cost $142,713,456)
|
|
|
|
|
|
|
145,018,861
|
|
|
|
127.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCKS 3.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSUMER DISCRETIONARY 1.1%
|
|
|
|
|
|
|
|
|
|
AUTO COMPONENTS 0.0%
|
|
|
|
|
|
|
|
|
|
Glasstech, Inc., Class C
1,3,9
|
|
|
|
11
|
|
|
|
|
|
|
0.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AUTOMOBILES 0.4%
|
|
|
|
|
|
|
|
|
|
General Motors Co.
1
|
|
|
14
|
|
|
|
433,025
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADCASTING & CABLE TV 0.0%
12
|
|
|
|
|
|
|
|
|
|
Adelphia Recovery Trust
1,3,9
|
|
|
157
|
|
|
|
2
|
|
|
|
0.0
|
12
|
Adelphia Recovery Trust
|
|
|
1,297
|
|
|
|
130
|
|
|
|
0.0
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
132
|
|
|
|
0.0
|
12
|
LEISURE EQUIPMENT & PRODUCTS 0.3%
|
|
|
|
|
|
|
|
|
|
True Temper Holdings, Inc. ADR
1,3,9
|
|
|
43
|
|
|
|
393,413
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TEXTILES, APPAREL & LUXURY GOODS 0.4%
|
|
|
|
|
|
Broder Brothers Co.
1,3,9
|
|
|
38
|
|
|
|
403,694
|
|
|
|
0.4
|
|
WestPoint International, Inc.
1,3,9
|
|
|
28
|
|
|
|
|
|
|
|
0.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
403,694
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consumer Discretionary
|
|
|
|
|
|
|
1,230,264
|
|
|
|
1.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSUMER STAPLES 0.1%
|
|
|
|
|
|
|
|
|
|
FOOD PRODUCTS 0.1%
|
|
|
|
|
|
|
|
|
|
Eurofresh, Inc., ADR
1,3,9
|
|
|
106
|
|
|
|
85,767
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INDUSTRIALS 0.2%
|
|
|
|
|
|
|
|
|
|
BUILDING PRODUCTS 0.1%
|
|
|
|
|
|
|
|
|
|
Jupiter Holding I Corp.
1,3,9
|
|
|
8
|
|
|
|
138,873
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMERCIAL SERVICES & SUPPLIES 0.1%
|
|
|
|
|
|
Quad/Graphics, Inc.
|
|
|
3
|
|
|
|
123,964
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Industrials
|
|
|
|
|
|
|
262,837
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
82,600
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Shares
(000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.7%
|
|
|
|
|
|
MagnaChip Semiconductor S.A./MagnaChip Semiconductor
Finance Co., (Luxembourg)
1,3,9
|
|
|
99
|
|
|
$
|
856,569
|
|
|
|
0.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Information Technology
|
|
|
|
|
|
|
939,169
|
|
|
|
0.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MATERIALS 1.2%
|
|
|
|
|
|
|
|
|
|
CHEMICALS 0.3%
|
|
|
|
|
|
|
|
|
|
LyondellBasell Industries N.V., (Netherlands), Class A
|
|
|
10
|
|
|
|
382,773
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTRUCTION MATERIALS 0.1%
|
|
|
|
|
|
|
|
|
|
U.S. Concrete, Inc.
1
|
|
|
10
|
|
|
|
87,684
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTAINERS & PACKAGING 0.0%
12
|
|
|
|
|
|
|
|
|
|
Constar International, Inc., ADR
1,3,9
|
|
|
4
|
|
|
|
1,199
|
|
|
|
0.0
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
METALS & MINING
0.0%
12
|
|
|
|
|
|
|
|
|
|
|
|
|
Lexington Coal Co.
1,3,9
|
|
|
25
|
|
|
|
7,973
|
|
|
|
0.0
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAPER & FOREST PRODUCTS 0.8%
|
|
|
|
|
|
|
|
|
|
AbitibiBowater, Inc., (Canada)
1
|
|
|
43
|
|
|
|
876,003
|
|
|
|
0.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Materials
|
|
|
|
|
|
|
1,355,632
|
|
|
|
1.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TELECOMMUNICATION SERVICES 0.4%
|
|
|
|
|
|
|
|
|
|
DIVERSIFIED TELECOMMUNICATION SERVICES 0.4%
|
|
|
|
|
|
AboveNet, Inc.
|
|
|
7
|
|
|
|
471,518
|
|
|
|
0.4
|
|
XO Holdings, Inc.
1
|
|
|
1
|
|
|
|
367
|
|
|
|
0.0
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
471,885
|
|
|
|
0.4
|
|
WIRELESS TELECOMMUNICATION SERVICES 0.0%
12
|
|
|
|
|
|
USA Mobility, Inc.
|
|
|
|
11
|
|
|
442
|
|
|
|
0.0
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Telecommunication Services
|
|
|
|
|
|
|
472,327
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UTILITIES 0.0%
12
|
|
|
|
|
|
|
|
|
|
|
|
|
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.0%
12
|
|
GenOn Energy, Inc.
1
|
|
|
3
|
|
|
|
10,218
|
|
|
|
0.0
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Stocks
|
|
|
|
|
|
|
|
|
|
|
|
|
(cost $6,694,363)
|
|
|
|
|
|
|
4,356,214
|
|
|
|
3.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREFERRED STOCKS 3.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSUMER DISCRETIONARY 1.3%
|
|
|
|
|
|
AUTO COMPONENTS 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Glasstech, Inc., Pfd, Series C
1,3,9
|
|
|
|
11
|
|
|
|
|
|
|
0.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AUTOMOBILES 0.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
General Motors Co., Pfd., Series B, 4.750%, 12/01/13
|
|
|
7
|
|
|
|
341,180
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
21
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (continued)
As of June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Shares
(000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVERSIFIED CONSUMER SERVICES 0.5%
|
|
|
|
|
|
|
|
|
|
Carraige Services Capital Trust, Pfd,
7.000%, 06/01/29
|
|
|
16
|
|
|
$
|
600,400
|
|
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOUSEHOLD DURABLES 0.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
M/I Homes, Inc., Pfd, Series A,
9.750%,
03/15/12
1,14
|
|
|
21
|
|
|
|
359,992
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEDIA 0.2%
|
|
|
|
|
|
|
|
|
|
Spanish Broadcasting System, Inc., Pfd
1,3,9
|
|
|
481
|
|
|
|
3,465
|
|
|
|
0.0
|
12
|
Spanish Broadcasting System, Inc., Pfd, Series B, PIK,
10.750%, 08/01/11
1,3,9,14
|
|
|
|
11
|
|
|
218,160
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
221,625
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consumer Discretionary
|
|
|
|
|
|
|
1,523,197
|
|
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSUMER STAPLES 0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOD PRODUCTS 0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Eurofresh, Inc., Pfd, ADR
1,3,9
|
|
|
|
11
|
|
|
147,687
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIALS 2.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMERCIAL BANKS 1.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
CoBank ACB, Pfd, Series D,
11.000%,
10/01/14
14
|
|
|
30
|
|
|
|
1,575,939
|
|
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSUMER FINANCE 0.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Ally Financial, Inc., 7.000%, 12/31/11
2,14
|
|
|
1
|
|
|
|
574,263
|
|
|
|
0.5
|
|
GMAC Capital Trust I, Series 2, VAR,
8.125%,
02/15/40
1
|
|
|
4
|
|
|
|
92,160
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
666,423
|
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Financials
|
|
|
|
|
|
|
2,242,362
|
|
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INFORMATION TECHNOLOGY 0.0%
|
|
|
|
|
|
|
|
|
|
COMPUTERS & PERIPHERALS 0.0%
|
|
|
|
|
|
|
|
|
|
Stratus Technologies, Inc., ADR
1,3,9
|
|
|
2
|
|
|
|
|
|
|
|
0.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MATERIALS 0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTAINERS & PACKAGING 0.1%
|
|
|
|
|
|
|
|
|
|
Constar International, Inc., Pfd
1,3,9
|
|
|
1
|
|
|
|
90,682
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Preferred Stocks
|
|
|
|
|
|
|
|
|
|
|
|
|
(cost $4,640,830)
|
|
|
|
|
|
|
4,003,928
|
|
|
|
3.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Shares
(000)
|
|
|
Value
|
|
|
Percent
of Net
Assets*
|
|
WARRANTS 0.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSUMER DISCRETIONARY 0.5%
|
|
|
|
|
|
|
|
|
|
AUTOMOBILES 0.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
General Motors Co., expiring 07/10/16
1
|
|
|
13
|
|
|
$
|
277,473
|
|
|
|
0.3
|
%
|
expiring 07/10/19
1
|
|
|
13
|
|
|
|
206,548
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consumer Discretionary
|
|
|
|
|
|
|
484,021
|
|
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Warrants
|
|
|
|
|
|
|
|
|
|
|
|
|
(cost $486,355)
|
|
|
|
|
|
|
484,021
|
|
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
(cost $11,821,548)
|
|
|
|
|
|
|
8,844,163
|
|
|
|
7.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHORT-TERM INVESTMENT 1.0%
|
|
INVESTMENT COMPANY 1.0%
|
|
JPMorgan Prime Money Market Fund, Institutional Class Shares,
0.050%
5,13
|
|
|
|
|
|
|
|
|
|
|
|
|
(cost $1,140,653)
|
|
|
1,141
|
|
|
|
1,140,653
|
|
|
|
1.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
(cost $155,675,657)
|
|
|
|
|
|
$
|
155,003,677
|
|
|
|
136.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock and Liabilities in Excess of Other Assets
|
|
|
|
|
|
|
(41,025,895
|
)
|
|
|
(36.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets Applicable to Common Stockholders
|
|
|
$
|
113,977,782
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
22
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Schedule of Portfolio Investments (concluded)
As of June 30, 2011 (Unaudited)
ADR
|
|
American Depositary Receipt
|
VAR
|
|
Variable Rate Security. The interest rate shown is the rate in effect as of June 30, 2011.
|
*
|
|
Applicable to common stockholders.
|
1
|
|
Non-income producing security.
|
2
|
|
Security is exempt from registration under Rule 144A of the Securities Act of 1933. Unless otherwise indicated, this security has been determined to be liquid
under procedures established by the Board of Directors and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities amounted to $56,111,378 and 49.2% of net assets applicable to common
stockholders.
|
3
|
|
Fair valued security. These securities amounted to $6,761,428 and 5.9% of net assets applicable to common stockholders.
|
5
|
|
Investment in affiliate. Money market fund registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc.
|
7
|
|
Step-up bond. Interest rate is effective rate as of June 30, 2011.
|
9
|
|
Security deemed to be illiquid. These securities amounted to $6,761,428 and 5.9% 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, units or shares).
|
12
|
|
Amount rounds to less than 0.1%.
|
13
|
|
The rate shown is the current yield as of June 30, 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 June 30, 2011.
|
^
|
|
Unsettled security, coupon rate is undetermined at June 30, 2011.
|
See Notes to Financial Statements.
23
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Statement of Assets And Liabilities
As of June 30, 2011 (Unaudited)
|
|
|
|
|
ASSETS:
|
|
|
|
|
Investments in non-affiliates, at value
|
|
$
|
153,863,024
|
|
Investments in affiliates, at value
|
|
|
1,140,653
|
|
|
|
|
|
|
Total investment securities, at value
|
|
|
155,003,677
|
|
Cash
|
|
|
58,923
|
|
Receivables:
|
|
|
|
|
Investment securities sold
|
|
|
2,034,886
|
|
Interest and dividends
|
|
|
2,245,794
|
|
|
|
|
|
|
Total Assets
|
|
|
159,343,280
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
Payables:
|
|
|
|
|
Dividends on preferred stock
|
|
|
226
|
|
Investment securities purchased
|
|
|
2,099,045
|
|
Accrued liabilities:
|
|
|
|
|
Investment advisory fees
|
|
|
198,685
|
|
Administration fees
|
|
|
9,526
|
|
Custodian and accounting fees
|
|
|
6,438
|
|
Directors and Chief Compliance Officers fees
|
|
|
479
|
|
Collateral management fees
|
|
|
850
|
|
Other
|
|
|
50,249
|
|
|
|
|
|
|
Total Liabilities
|
|
|
2,365,498
|
|
Less: Outstanding Preferred Stock (1,720 shares at
$25,000 per share) at liquidation value
|
|
|
43,000,000
|
|
|
|
|
|
|
Net Assets applicable to common stockholders
|
|
$
|
113,977,782
|
|
|
|
|
|
|
NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS:
|
|
|
|
|
Common Stock, $0.01 par value; 49,996,320 shares authorized, 12,958,759 shares issued and outstanding
|
|
$
|
129,588
|
|
Capital in excess of par
|
|
|
160,212,643
|
|
Undistributed net investment income
|
|
|
2,026,770
|
|
Accumulated net realized gains (losses)
|
|
|
(47,719,239
|
)
|
Net unrealized appreciation (depreciation)
|
|
|
(671,980
|
)
|
|
|
|
|
|
Total Net Assets applicable to common stockholders
|
|
$
|
113,977,782
|
|
|
|
|
|
|
Shares Outstanding
|
|
|
12,958,759
|
|
Net asset value per Common Share
($113,977,782/12,958,759)
|
|
$
|
8.80
|
|
Cost of investments in non-affiliates
|
|
$
|
154,535,004
|
|
Cost of investments in affiliates
|
|
|
1,140,653
|
|
See Notes to Financial Statements.
Statement of Operations
For the
Six Months Ended June 30, 2011 (Unaudited)
|
|
|
|
|
INVESTMENT INCOME:
|
|
|
|
|
Interest income from non-affiliates
|
|
$
|
6,674,265
|
|
Dividend income from non-affiliates
|
|
|
149,521
|
|
Dividend income from affiliates
|
|
|
1,105
|
|
|
|
|
|
|
Total investment income
|
|
|
6,824,891
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
Investment advisory fees (Note 6)
|
|
|
1,078,381
|
|
Administration fees (Note 6)
|
|
|
79,225
|
|
Custodian and accounting fees (Note 6)
|
|
|
31,055
|
|
Collateral management fees
|
|
|
850
|
|
Audit fees
|
|
|
35,863
|
|
Legal fees
|
|
|
46,965
|
|
Directors and Chief Compliance Officers fees
|
|
|
|
|
Printing and mailing costs
|
|
|
72,371
|
|
Transfer agent fees
|
|
|
5,976
|
|
Stock exchange listing fees
|
|
|
10,155
|
|
Insurance
|
|
|
14,983
|
|
Other
|
|
|
2,812
|
|
|
|
|
|
|
Operating expenses
|
|
|
1,378,636
|
|
|
|
|
|
|
Commissions on auction rate preferred stock
|
|
|
18,200
|
|
|
|
|
|
|
Total expenses
|
|
|
1,396,836
|
|
|
|
|
|
|
Less amounts waived
|
|
|
(2,245
|
)
|
|
|
|
|
|
Net expenses
|
|
|
1,394,591
|
|
|
|
|
|
|
Net investment income (loss)
|
|
|
5,430,300
|
|
|
|
|
|
|
REALIZED/UNREALIZED GAINS (LOSSES):
|
|
|
|
|
Net realized gain (loss) on transactions from:
|
|
|
|
|
Investments in non-affiliates
|
|
|
2,000,385
|
|
Swaps
|
|
|
(94,815
|
)
|
|
|
|
|
|
Net realized gain (loss)
|
|
|
1,905,570
|
|
|
|
|
|
|
Change in net unrealized appreciation (depreciation) of:
|
|
|
|
|
Investments in non-affiliates
|
|
|
(503,377
|
)
|
Swaps
|
|
|
93,260
|
|
|
|
|
|
|
Change in net unrealized appreciation (depreciation)
|
|
|
(410,117
|
)
|
|
|
|
|
|
Net realized/unrealized gains (losses)
|
|
|
1,495,453
|
|
|
|
|
|
|
Change in net assets resulting from operations
|
|
$
|
6,925,753
|
|
|
|
|
|
|
DISTRIBUTIONS TO PREFERRED STOCKHOLDERS FROM
NET INVESTMENT INCOME
|
|
|
(38,774
|
)
|
|
|
|
|
|
NET INCREASE/(DECREASE) IN NET ASSETS APPLICABLE
TO COMMON STOCKHOLDERS
RESULTING FROM
OPERATIONS
|
|
$
|
6,886,979
|
|
|
|
|
|
|
See Notes to Financial Statements.
24
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Statements of Changes in Net Assets
For the Periods Indicated
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
6/30/2011
(Unaudited)
|
|
|
Year Ended
12/31/2010
|
|
INCREASE/(DECREASE) IN NET ASSETS:
|
|
|
|
|
|
|
|
|
Operations:
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
|
$
|
5,430,300
|
|
|
$
|
11,638,480
|
|
Net realized gain (loss)
|
|
|
1,905,570
|
|
|
|
(3,338,382
|
)
|
Change in net unrealized appreciation (depreciation)
|
|
|
(410,117
|
)
|
|
|
14,836,930
|
|
Distributions to preferred stockholders from net investment income
|
|
|
(38,774
|
)
|
|
|
(108,868
|
)
|
|
|
|
|
|
|
|
|
|
Net increase/(decrease) in net assets resulting from operations applicable to common stockholders
|
|
|
6,886,979
|
|
|
|
23,028,160
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTIONS TO COMMON STOCKHOLDERS FROM:
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(5,052,816
|
)
|
|
|
(11,852,808
|
)
|
|
|
|
|
|
|
|
|
|
Total distributions to common stockholders
|
|
|
(5,052,816
|
)
|
|
|
(11,852,808
|
)
|
|
|
|
|
|
|
|
|
|
FUND SHARE TRANSACTIONS (NOTE 2):
|
|
|
|
|
|
|
|
|
Value of 2,141 and 5,713 shares issued in reinvestment of dividends to common stockholders in 2011 and 2010, respectively
|
|
|
20,533
|
|
|
|
47,803
|
|
|
|
|
|
|
|
|
|
|
Total increase in net assets derived from fund share transactions
|
|
|
20,533
|
|
|
|
47,803
|
|
|
|
|
|
|
|
|
|
|
Total net increase/(decrease) in net assets applicable to common stockholders
|
|
|
1,854,696
|
|
|
|
11,223,155
|
|
NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS:
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
112,123,086
|
|
|
|
100,899,931
|
|
|
|
|
|
|
|
|
|
|
End of period
|
|
$
|
113,977,782
|
|
|
$
|
112,123,086
|
|
|
|
|
|
|
|
|
|
|
Undistributed Net Investment Income
|
|
$
|
2,026,770
|
|
|
$
|
1,688,060
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
Statement of Cash Flows
For the
Six Months Ended June 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN CASH
|
|
|
|
|
Cash flows provided (used) by operating activities:
|
|
|
|
|
Net increase/decrease in net assets from operations
|
|
$
|
6,925,753
|
|
Adjustments to reconcile net increase/decrease in net assets from operations to net cash provided (used) by operating
activities:
|
|
|
|
|
Purchase of investment securities
|
|
|
(48,675,820
|
)
|
Proceeds from disposition of investment securities
|
|
|
49,012,231
|
|
Purchases of short-term investments, net
|
|
|
(87,298
|
)
|
Unrealized appreciation/depreciation on swap contracts
|
|
|
(93,260
|
)
|
Unrealized appreciation/depreciation on investments
|
|
|
503,377
|
|
Net realized gain/loss on investments
|
|
|
(2,000,385
|
)
|
Net realized gain/loss on swap contracts
|
|
|
94,815
|
|
Decrease in due from Advisor and Affiliates
|
|
|
33,722
|
|
Increase in receivable for investments sold
|
|
|
(166,666
|
)
|
Increase in interest and dividends receivable
|
|
|
(13,550
|
)
|
Decrease in securities lending income receivable
|
|
|
50
|
|
Increase in payable for investments purchased
|
|
|
85,124
|
|
Decrease in excise tax payable
|
|
|
(59,359
|
)
|
Increase in accrued expenses and other liabilities
|
|
|
1,632
|
|
Net (amortization)/accretion of income
|
|
|
(534,553
|
)
|
|
|
|
|
|
Net cash provided (used) by operating activities
|
|
|
5,025,813
|
|
|
|
|
|
|
Cash flows provided (used) by financing activities:
|
|
|
|
|
Cash distributions paid to shareholders (net of reinvestments of $20,533)
|
|
|
(5,032,283
|
)
|
Cash distributions paid to preferred stockholders
|
|
|
(39,535
|
)
|
|
|
|
|
|
Net cash provided (used) by financing activities
|
|
|
(5,071,818
|
)
|
|
|
|
|
|
Net increase/decrease in cash
|
|
|
(46,005
|
)
|
|
|
|
|
|
Cash:
|
|
|
|
|
Beginning of period
|
|
|
104,928
|
|
|
|
|
|
|
End of period
|
|
$
|
58,923
|
|
|
|
|
|
|
Supplemental information:
For purposes of reporting the Statement
of Cash Flows, the Fund considers all cash accounts that are not subject to withdrawal restrictions or penalties to be cash equivalents.
See Notes to Financial Statements.
25
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Financial Highlights
(Contained below is per share operating performance data for a share of common stock outstanding, total return performance, ratios to average net
assets and other supplemental data. This information has been derived from information provided in the financial statements calculated using average shares outstanding and market price data for the Funds shares.)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Six
Months Ended
June 30, 2011
(Unaudited)
|
|
|
For the Year Ended December 31,
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
Net asset value, beginning of period
|
|
$
|
8.65
|
|
|
$
|
7.79
|
|
|
$
|
4.14
|
|
|
$
|
9.15
|
|
|
$
|
9.95
|
|
|
$
|
8.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
0.42
|
|
|
|
0.90
|
|
|
|
0.76
|
|
|
|
1.21
|
|
|
|
1.21
|
|
|
|
1.09
|
|
Net realized and unrealized gain/(loss) on investments
|
|
|
0.12
|
|
|
|
0.89
|
|
|
|
3.56
|
|
|
|
(5.18
|
)
|
|
|
(0.84
|
)
|
|
|
1.07
|
|
Distributions to preferred stockholders from net investment income
|
|
|
|
(15)
|
|
|
(0.01
|
)
|
|
|
(0.01
|
)
|
|
|
(0.16
|
)
|
|
|
(0.27
|
)
|
|
|
(0.25
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase/(decrease) in net asset value resulting from operations
|
|
|
0.54
|
|
|
|
1.78
|
|
|
|
4.31
|
|
|
|
(4.13
|
)
|
|
|
0.10
|
|
|
|
1.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Common Stockholders from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.39
|
)
|
|
|
(0.92
|
)
|
|
|
(0 .66
|
)
|
|
|
(0 .88
|
)
|
|
|
(0.90
|
)
|
|
|
(0.90
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to common stockholders
|
|
|
(0.39
|
)
|
|
|
(0.92
|
)
|
|
|
(0 .66
|
)
|
|
|
(0 .88
|
)
|
|
|
(0.90
|
)
|
|
|
(0.90
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period
|
|
$
|
8.80
|
|
|
$
|
8.65
|
|
|
$
|
7 .79
|
|
|
$
|
4 .14
|
|
|
$
|
9.15
|
|
|
$
|
9.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value per share, end of period
|
|
$
|
9.80
|
|
|
$
|
8.45
|
|
|
$
|
7 .38
|
|
|
$
|
3 .68
|
|
|
$
|
8.10
|
|
|
$
|
9.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENT
RETURN:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on market value per common share
(2)(3)
|
|
|
21.06
|
%
|
|
|
27.90
|
%
|
|
|
126 .57
|
%
|
|
|
(47.76
|
)%
|
|
|
(9.01
|
)%
|
|
|
26.78
|
%
|
Based on net asset value per common
share
(3)(4)(5)
|
|
|
6.14
|
%
|
|
|
24.03
|
%
|
|
|
112 .51
|
%
|
|
|
(47.98
|
)%
|
|
|
1.24
|
%
|
|
|
22.38
|
%
|
RATIOS TO AVERAGE NET
ASSETS:
(6)(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Expenses (including expenses related to
leverage)
(8)(9)(10)
|
|
|
1.76
|
%
(13)
|
|
|
1.74
|
%
(13)
|
|
|
1.73
|
%
(13)
|
|
|
0.59
|
%
|
|
|
1.27
|
%
|
|
|
1.95
|
%
|
Applicable to common stockholders
only
(8)(10)(11)
|
|
|
2.41
|
%
(14)
|
|
|
2.43
|
%
(14)
|
|
|
2.40
|
%
(14)
|
|
|
0.99
|
%
|
|
|
1.92
|
%
|
|
|
3.01
|
%
|
Net Expenses (prior to expenses related to
leverage)
(8)(9)(10)
|
|
|
1.74
|
%
(13)
|
|
|
1.67
|
%
(13)
|
|
|
1.64
|
%
(13)
|
|
|
0.49
|
%
|
|
|
1.18
|
%
|
|
|
1.86
|
%
|
Applicable to common stockholders
only
(8)(10)(11)
|
|
|
2.38
|
%
(14)
|
|
|
2.34
|
%
(14)
|
|
|
2.56
|
%
(14)
|
|
|
0.82
|
%
|
|
|
1.79
|
%
|
|
|
2.87
|
%
|
Net investment income
(10)(11)
|
|
|
9.38
|
%
|
|
|
10.81
|
%
|
|
|
12.80
|
%
|
|
|
16.22
|
%
|
|
|
12.18
|
%
|
|
|
11.61
|
%
|
SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period, net of preferred stock (000)
|
|
$
|
113,978
|
|
|
$
|
112,123
|
|
|
$
|
100,900
|
|
|
$
|
53,537
|
|
|
$
|
118,402
|
|
|
$
|
128,712
|
|
Portfolio turnover rate
(3)
|
|
|
31
|
%
|
|
|
58
|
%
|
|
|
63
|
%
|
|
|
36
|
%
|
|
|
64
|
%
|
|
|
75
|
%
|
SENIOR SECURITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of preferred shares outstanding at end of period
|
|
|
1,720
|
|
|
|
1,720
|
|
|
|
1,720
|
|
|
|
1,720
|
|
|
|
2,640
|
|
|
|
2,640
|
|
Asset coverage per share of preferred stock outstanding at end of
period
(12)
|
|
$
|
91,266
|
|
|
$
|
90,188
|
|
|
$
|
83,663
|
|
|
$
|
56,126
|
|
|
$
|
69,849
|
|
|
$
|
73,755
|
|
Involuntary liquidation preference and average market value per share of preferred stock
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
(1)
|
|
Total investment return excludes the effects of commissions. Dividends and
distributions to common stockholders, if any, are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Funds dividend reinvestment plan. Rights offerings, if any, are assumed, for purposes of this
calculation, to be fully subscribed under the terms of the rights offering.
|
(2)
|
|
Assumes an investment at the common share market value at the beginning of the period
indicated and sale of all shares at the closing common share market value at the end of the period indicated. Dividends and distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Funds
dividend reinvestment plan.
|
(3)
|
|
Not annualized for periods less than one year.
|
(4)
|
|
Assumes an investment at the common share net asset value at the beginning of the
period indicated and sale of all shares at the closing common share net asset value at the end of the period indicated. Dividends and distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the
Funds dividend reinvestment plan.
|
(5)
|
|
Includes adjustments in accordance with accounting principles generally accepted in
the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for common stockholder transactions.
|
(6)
|
|
Ratios do not include the effect of dividends to preferred stock.
|
(7)
|
|
See Note 6 in the Notes to Financial Statements.
|
(8)
|
|
Includes earnings credits and interest expense, each of which is less than 0.01%, if
applicable or unless otherwise noted.
|
(9)
|
|
Ratios calculated relative to the average net assets of both common and preferred
stockholders.
|
(10)
|
|
Annualized for periods less than one year.
|
(11)
|
|
Ratios calculated relative to the average net assets of common stockholders only.
|
(12)
|
|
Calculated by subtracting the Funds total liabilities (not including the preferred stock) from the Funds total assets, and dividing this by the
number of preferred shares outstanding.
|
(13)
|
|
The Advisor and Administrator voluntarily agreed to waive/reimburse fees during the six months ended June 30, 2011 and the years ended December 31, 2010 and
2009. Without these waivers/reimbursements, the ratios would have been higher by, less than 0.01%, 0.03% and 0.17%, respectively.
|
(14)
|
|
The Advisor and Administrator voluntarily agreed to waive/reimburse fees during the six months ended June 30, 2011 and the years ended December 31, 2010 and
2009. Without these waivers/reimbursements, the ratios would have been higher by, less than 0.01%, 0.04% and 0.27%, respectively.
|
(15)
|
|
Amount rounds to less than $0.01.
|
See Notes
to Financial Statements.
26
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Notes to Financial Statements (Unaudited)
1.
|
|
SIGNIFICANT ACCOUNTING POLICIES
Pacholder High Yield Fund, Inc. (the Fund) is a closed-end, diversified
management investment company with a leveraged capital structure. The Funds investment objective is to provide a high level of total return through current income and capital appreciation. Under normal circumstances, the Fund invests at least
80% of the value of its assets in high yield debt securities. The Fund invests primarily in fixed income securities of domestic companies. The Fund was incorporated under the laws of the State of Maryland in August 1988.
|
The following is a summary of significant accounting policies followed
by the Fund in the preparation of its financial statements. The policies are in accordance with accounting principles generally accepted in the United States of America. The preparation of financial statements requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.
|
A.
|
|
SECURITY VALUATIONS
Fixed income securities (other than certain short-term investments maturing in less
than 61 days) are valued each day based on quotations received from independent or affiliated pricing services approved by the Board of Directors or third party broker-dealers. The broker-dealers or pricing services use multiple valuation techniques
to determine fair value. In instances where sufficient market activity exists, the broker-dealer or pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances, where
sufficient market activity may not exist or is limited, the broker-dealers or pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, option-adjusted spreads, credit
spreads, estimated default rates, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair
value. Generally, short-term investments of sufficient credit quality maturing in less than 61 days are valued at amortized cost, which approximates market value. Certain investments of the Fund may, depending upon market conditions, trade in
relatively thin markets and/or in markets that experience significant volatility. As a result of these conditions, the prices used by the Fund to value securities may differ from the value that would be realized if these securities were sold, and
the differences could be material. Futures and options shall generally be valued on the basis of available market quotations. Swaps and other derivatives are valued daily, primarily using independent or affiliated pricing services approved by the
Board of Directors. If valuations are not available from such services or values received are deemed not representative of market value, values will be obtained from a third party broker-dealer or counterparty. Investments in other open-end
investment companies are valued at such investment companys current day closing net asset value per share. Equity securities listed on a North American, Central American, South American or Caribbean securities exchange shall generally be
valued at the last sale price on the exchange on which the security is principally traded that is reported before the time when the net assets of the Fund are valued. The value of securities listed on The NASDAQ Stock Market LLC shall generally be
the NASDAQ Official Closing Price.
|
Securities
or other assets for which market quotations are not readily available or for which market quotations do not represent the value at the time of pricing (including certain illiquid securities) are fair valued in accordance with procedures established
by and under the supervision and responsibility of the Board of Directors. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples,
book values, and other relevant information for the investment to determine the fair value of the investment. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to
calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. It is possible that the estimated values may differ significantly from the values that would have been used
had a ready market for the investments existed, and such differences could be material. At June 30, 2011, $6,761,428 of the Funds investments were fair valued.
Valuations reflected in this report are as of the report date. As a
result, changes in valuation due to market events and/or issuer related events after the report date and prior to issuance of the report are not reflected herein.
The various inputs that are used in determining the fair value of the
Funds 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 Funds own assumptions in determining the fair value of investments)
|
A financial instruments 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.
27
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Notes to Financial Statements (Unaudited)
(continued)
The following table represents each valuation input by sector as
presented in the Schedule of Portfolio Investments (SOI):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1
Quoted prices
|
|
|
Level 2
Other significant
observable inputs
|
|
|
Level 3
Significant
unobservable inputs
|
|
|
Total
|
|
Investments in Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Discretionary
|
|
$
|
433,155
|
|
|
$
|
|
|
|
$
|
797,109
|
|
|
$
|
1,230,264
|
|
Consumer Staples
|
|
|
|
|
|
|
|
|
|
|
85,767
|
|
|
|
85,767
|
|
Industrials
|
|
|
123,964
|
|
|
|
|
|
|
|
138,873
|
|
|
|
262,837
|
|
Information Technology
|
|
|
82,600
|
|
|
|
|
|
|
|
856,569
|
|
|
|
939,169
|
|
Materials
|
|
|
1,346,460
|
|
|
|
|
|
|
|
9,172
|
|
|
|
1,355,632
|
|
Telecommunication Services
|
|
|
472,327
|
|
|
|
|
|
|
|
|
|
|
|
472,327
|
|
Utilities
|
|
|
10,218
|
|
|
|
|
|
|
|
|
|
|
|
10,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Stocks
|
|
|
2,468,724
|
|
|
|
|
|
|
|
1,887,490
|
|
|
|
4,356,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stocks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Discretionary
|
|
|
|
|
|
|
1,301,572
|
|
|
|
221,625
|
|
|
|
1,523,197
|
|
Consumer Staples
|
|
|
|
|
|
|
|
|
|
|
147,687
|
|
|
|
147,687
|
|
Financials
|
|
|
|
|
|
|
2,242,362
|
|
|
|
|
|
|
|
2,242,362
|
|
Information Technology
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
|
(a)
|
Materials
|
|
|
|
|
|
|
|
|
|
|
90,682
|
|
|
|
90,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Preferred Stocks
|
|
|
|
|
|
|
3,543,934
|
|
|
|
459,994
|
|
|
|
4,003,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-Backed Securities
|
|
|
|
|
|
|
|
|
|
|
1,498,527
|
|
|
|
1,498,527
|
|
Convertible Bond
|
|
|
|
|
|
|
55,775
|
|
|
|
|
|
|
|
55,775
|
|
Corporate Bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Discretionary
|
|
|
|
|
|
|
35,667,798
|
|
|
|
688
|
|
|
|
35,668,486
|
|
Consumer Staples
|
|
|
|
|
|
|
5,012,810
|
|
|
|
421,977
|
|
|
|
5,434,787
|
|
Energy
|
|
|
|
|
|
|
13,934,316
|
|
|
|
|
|
|
|
13,934,316
|
|
Financials
|
|
|
|
|
|
|
12,521,109
|
|
|
|
|
|
|
|
12,521,109
|
|
Health Care
|
|
|
|
|
|
|
5,446,307
|
|
|
|
792,053
|
|
|
|
6,238,360
|
|
Industrials
|
|
|
|
|
|
|
14,630,864
|
|
|
|
|
|
|
|
14,630,864
|
|
Information Technology
|
|
|
|
|
|
|
6,523,701
|
|
|
|
482,906
|
|
|
|
7,006,607
|
|
Materials
|
|
|
|
|
|
|
10,319,505
|
|
|
|
344,198
|
|
|
|
10,663,703
|
|
Telecommunication Services
|
|
|
|
|
|
|
9,409,802
|
|
|
|
|
|
|
|
9,409,802
|
|
Utilities
|
|
|
|
|
|
|
5,709,846
|
|
|
|
|
|
|
|
5,709,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Corporate Bonds
|
|
|
|
|
|
|
119,176,058
|
|
|
|
2,041,822
|
|
|
|
121,217,880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt Securities
|
|
|
|
|
|
|
119,231,833
|
|
|
|
3,540,349
|
|
|
|
122,772,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Participations & Assignments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Discretionary
|
|
|
|
|
|
|
7,906,705
|
|
|
|
|
|
|
|
7,906,705
|
|
Consumer Staples
|
|
|
|
|
|
|
968,304
|
|
|
|
|
|
|
|
968,304
|
|
Energy
|
|
|
|
|
|
|
217,440
|
|
|
|
|
|
|
|
217,440
|
|
Financials
|
|
|
|
|
|
|
2,968,445
|
|
|
|
|
|
|
|
2,968,445
|
|
Health Care
|
|
|
|
|
|
|
212,042
|
|
|
|
|
|
|
|
212,042
|
|
Industrials
|
|
|
|
|
|
|
2,952,553
|
|
|
|
124,269
|
|
|
|
3,076,822
|
|
Information Technology
|
|
|
|
|
|
|
2,075,247
|
|
|
|
749,326
|
|
|
|
2,824,573
|
|
Materials
|
|
|
|
|
|
|
1,979,587
|
|
|
|
|
|
|
|
1,979,587
|
|
Telecommunication Services
|
|
|
|
|
|
|
505,938
|
|
|
|
|
|
|
|
505,938
|
|
Utilities
|
|
|
|
|
|
|
1,586,823
|
|
|
|
|
|
|
|
1,586,823
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loan Participations & Assignments
|
|
|
|
|
|
|
21,373,084
|
|
|
|
873,595
|
|
|
|
22,246,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Notes to Financial Statements (Unaudited)
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1
Quoted prices
|
|
|
Level 2
Other significant
observable inputs
|
|
|
Level 3
Significant
unobservable inputs
|
|
|
Total
|
|
Warrants
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Discretionary
|
|
$
|
|
|
|
$
|
484,021
|
|
|
$
|
|
|
|
$
|
484,021
|
|
Short-Term Investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Company
|
|
|
1,140,653
|
|
|
|
|
|
|
|
|
|
|
|
1,140,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments in Securities
|
|
$
|
3,609,377
|
|
|
$
|
144,632,872
|
|
|
$
|
6,761,428
|
|
|
$
|
155,003,677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Security has a zero value.
|
There were no significant transfers
between Levels 1 and 2 during the six months ended June 30, 2011.
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
6/30/11
|
|
Investments in Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-Backed Security
|
|
$
|
1,488,539
|
|
|
$
|
|
|
|
$
|
8,425
|
|
|
$
|
4,759
|
|
|
$
|
|
|
|
$
|
(3,196
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
1,498,527
|
|
Common Stocks Consumer Discretionary
|
|
|
343,970
|
|
|
|
|
|
|
|
453,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
797,109
|
|
Common Stocks Consumer Staples
|
|
|
219,182
|
|
|
|
|
|
|
|
(133,415
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
85,767
|
|
Common Stocks Industrials
|
|
|
187,887
|
|
|
|
|
|
|
|
(49,014
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
138,873
|
|
Common Stocks Information Technology
|
|
|
1,030,974
|
|
|
|
|
|
|
|
(174,405
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
856,569
|
|
Common Stocks Materials
|
|
|
27,083
|
|
|
|
|
|
|
|
(19,110
|
)
|
|
|
|
|
|
|
1,199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,172
|
|
Corporate Bond Consumer Discretionary
|
|
|
424,142
|
|
|
|
|
|
|
|
688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(424,142
|
)
|
|
|
688
|
|
Corporate Bond Consumer Staples
|
|
|
406,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
421,977
|
|
Corporate Bond Financials
|
|
|
880,000
|
|
|
|
154,170
|
|
|
|
(19,756
|
)
|
|
|
1,461
|
|
|
|
|
|
|
|
(1,015,875
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Bond Health Care
|
|
|
932,291
|
|
|
|
|
|
|
|
(299,162
|
)
|
|
|
(445
|
)
|
|
|
159,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
792,053
|
|
Corporate Bond Industrials
|
|
|
465,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(465,443
|
)
|
|
|
|
|
Corporate Bond Information Technology
|
|
|
418,093
|
|
|
|
|
|
|
|
4,920
|
|
|
|
|
|
|
|
59,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
482,906
|
|
Corporate Bond Materials
|
|
|
84,204
|
|
|
|
|
|
|
|
(42,279
|
)
|
|
|
|
|
|
|
302,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
344,198
|
|
Loan Participations &
Assignment Financials
|
|
|
817,789
|
|
|
|
(4,782
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(813,007
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Participations &
Assignment Industrials
|
|
|
123,718
|
|
|
|
|
|
|
|
551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
124,269
|
|
Loan Participations &
Assignment Information Technology
|
|
|
857,780
|
|
|
|
|
|
|
|
7,732
|
|
|
|
302
|
|
|
|
|
|
|
|
(116,488
|
)
|
|
|
|
|
|
|
|
|
|
|
749,326
|
|
Loan Participations &
Assignment Materials
|
|
|
493,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(493,750
|
)
|
|
|
|
|
Preferred Stocks Consumer Discretionary
|
|
|
206,234
|
|
|
|
|
|
|
|
15,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
221,625
|
|
29
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Notes to Financial Statements (Unaudited)
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
6/30/11
|
|
Preferred Stocks Consumer Staples
|
|
$
|
147,688
|
|
|
$
|
|
|
|
$
|
(1
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
147,687
|
|
Preferred Stocks Financials
|
|
|
1,622,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,622,814
|
)
|
|
|
|
|
Preferred Stocks Information Technology
|
|
|
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Preferred Stocks Materials
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
11,178,306
|
|
|
$
|
149,388
|
|
|
$
|
(246,296
|
)
|
|
$
|
6,077
|
|
|
$
|
628,668
|
|
|
$
|
(1,948,566
|
)
|
|
$
|
|
|
|
$
|
(3,006,149
|
)
|
|
$
|
6,761,428
|
|
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(a)
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Security has zero value.
|
1
|
|
Purchases include all purchases of securities and securities received in corporate actions.
|
2
|
|
Sales include all sales of securities, maturities, paydowns and securities tendered in a corporate action.
|
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 June 30, 2011, which were valued using significant unobservable inputs (Level 3) amounted to $(226,540). This amount is included in Change in net unrealized appreciation (depreciation) of investments in non-affiliates on the
Statement of Operations.
|
B.
|
|
FEDERAL TAXES
It is the Funds policy to make distributions to stockholders of net investment
income and net realized capital gains to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies.
|
The Fund intends to continue to qualify as a regulated investment
company by complying with the appropriate provisions of the Internal Revenue Code and to distribute to stockholders each year substantially all of its taxable income, if any, including realized gains on investments.
The Fund reserves the right to retain investment company taxable income
and/or net capital gains. As such, excise taxes may be recognized and paid on undistributed income and capital gain amounts.
Distributions paid by the Fund are subject to recharacterization for tax purposes. A portion of dividends paid may consist of net realized gains. To
the extent that capital loss carryforwards are available to offset the distribution of capital gains but are not utilized at the end of the Funds fiscal year, such capital gain distributions may be taxable to stockholders as ordinary income.
The amount of dividends and distributions from net
investment income and net realized capital gains is determined in accordance with Federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. To the extent these
book/tax differences are permanent in nature (i.e., that they result from other than timing of recognition temporary differences), such amounts are reclassified within the capital accounts based on their
Federal tax-basis treatment.
The Fund is not aware of any
tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits or losses will significantly change in the next twelve months. However, the Funds conclusions may be subject to future review based on
changes in, or the interpretation of, the accounting standards or tax laws and regulations. The Funds federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.
|
C.
|
|
SECURITIES TRANSACTIONS AND INVESTMENT
INCOME
Investment transactions are accounted for on the date the
securities are purchased or sold (trade date). Realized gains and losses on securities transactions are determined on an identified cost basis.
|
30
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Notes to Financial Statements (Unaudited)
(continued)
|
Interest income is determined on the basis of coupon interest accrued using the effective interest method adjusted for amortization of premiums and accretion of discounts. Dividend income is
recorded on the ex-dividend date.
|
|
D.
|
|
SECURITIES LENDING
The Fund may lend securities to brokers approved by J.P. Morgan Investment Management Inc. (JPMIM or the Advisor)
in order to generate additional income. JPMorgan Chase Bank, N.A. (JPMCB), an affiliate of the Fund, serves as lending agent for the Fund pursuant to an Amended and Restated Securities Lending Agreement effective February 9, 2010
(Securities Lending Agreement). Securities loaned are collateralized by cash, which is invested in Capital Shares of the JPMorgan Prime Money Market Fund. Upon termination of a loan, the Fund is required to return to the borrower the
posted cash collateral. Loans are subject to termination by the Fund or the borrower at any time.
|
Securities lending income is comprised of income earned on cash collateral investments (Collateral Investments), net of a rebate
received from or paid to borrowers for use of cash collateral and lending agent fees. This amount is recorded as Income from securities lending (net) on the Statement of Operations. The Fund also receives payments from the borrower during the period
of the loan, equivalent to dividends and interest earned on the securities loaned, which are recorded as Dividend or Interest income, respectively, on the Statement of Operations.
At the inception of a loan, securities are exchanged for cash
collateral equal to at least 102% of the value of loaned U.S. dollar-denominated securities, plus accrued interest, and 105% of the value of loaned non-dollar denominated securities, plus accrued interest. The Securities Lending Agreement requires
that the loaned securities be marked to market on a daily basis and additional cash collateral is requested from borrowers when the cash received from borrowers becomes less than 102% and 105% of the value of loaned U.S. dollar-denominated and
non-dollar denominated securities, respectively, subject to certain
de minimis
guidelines.
The value of the cash collateral received is recorded as a liability on the Statement of Assets and Liabilities and details of Collateral Investments are disclosed in the SOI.
The Fund bears the risk of loss associated with the Collateral
Investments and is not entitled to additional collateral from the borrower to cover any such losses. To the extent that the value of the Collateral Investments declines below the amount owed to a borrower, the Fund may incur losses that exceed the
amount it earned on lending the security. Upon termination of a loan, the Fund may use leverage (borrow money) to repay the borrower for cash collateral posted, if the Advisor does not believe that it is prudent to sell the Collateral Investments to
fund the payment of this liability.
Securities lending also
involves counterparty risks, including the risk that the loaned securities may not be returned in a timely manner or at all. Subject to certain conditions, JPMCB has agreed to indemnify the Fund from losses resulting from a borrowers failure
to return a loaned security.
The Advisor waives fees
associated with the Funds investment in JPMorgan Prime Money Market Fund. This amount offsets the administration fees and shareholder servicing fees incurred by JPMorgan Prime Money Market Fund related to the Funds investment in such
fund. A portion of the waiver is voluntary.
Under the JPMCB
Securities Lending Agreement, JPMCB is entitled to a fee paid monthly in arrears equal to: (i) 0.03% of the average dollar value of the loans of U.S. dollar-denominated securities outstanding during a given month; and (ii) 0.09% of the
average dollar value of loans of non-dollar-denominated securities outstanding during a given month.
The Fund did not have any outstanding securities on loan at June 30, 2011, or at any time during the six month period.
|
E.
|
|
EXPENSES AND DISTRIBUTIONS
Expenses are accrued as incurred. Dividends to common stockholders are paid from net
investment income monthly and distributions of net realized capital gains, if any, are paid at least annually. Dividends to preferred stockholders are accrued daily based on a variable interest rate set at weekly auctions or, in the absence of a
successful auction, at a maximum rate as calculated in accordance with the Funds Articles Supplementary for Auction Rate Cumulative Preferred Stock and are paid weekly from net investment income. Distributions are determined in accordance with
federal income tax regulations which may differ from generally accepted accounting principles.
|
|
F.
|
|
WHEN, AS AND IF ISSUED
SECURITIES
The Fund may engage in when-issued or
delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities
purchased
|
31
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Notes to Financial Statements (Unaudited)
(continued)
|
on a when-issued or delayed delivery basis begin earning interest on the settlement date.
|
The Fund had no when-issued or delayed-delivery purchase commitments as
of June 30, 2011.
|
G.
|
|
LOAN PARTICIPATIONS AND ASSIGNMENTS
The Fund may invest in loan participations and assignments of all or a portion of the
loans. When the Fund purchases a loan participation, the Fund typically enters into a contractual relationship with the lender or third party selling such participations (Selling Participant), but not the borrower. In contrast, the Fund
has direct rights against the borrower on a loan when it purchases an assignment; provided, however, that the Funds rights may be more limited than the lender from which it acquired the assignment and the Fund may be able to enforce its rights
only through an administrative agent. As a result, the Fund assumes the credit risk of the Borrower and the Selling Participant and any other persons interpositioned between the Fund and the Borrower (Intermediate Participants). Although
certain loan assignments or participations are secured by collateral, the Fund could experience delays or limitations in realizing on such collateral or have its interest subordinated to other indebtedness of the obligor. In addition, loan
assignments and participations are vulnerable to market conditions such that economic conditions or other events may reduce the demand for loan assignments and participations and certain loan assignments and participations which were liquid, when
purchased, may become illiquid.
|
|
H.
|
|
UNFUNDED COMMITMENTS
The Fund may enter into commitments to buy and sell investments including commitments to buy loan assignments and participations to settle on future dates as part of its normal investment
activities. Unfunded commitments are generally traded and priced as part of a related loan participation or assignment (Note 1.G.). The value of the unfunded portion of the investment is determined using a pro-rata allocation, based on its par
value relative to the par value of the entire investment. The unrealized appreciation/depreciation from unfunded commitments is reported in the Statement of Assets and Liabilities. The Fund segregates sufficient liquid assets for unfunded and funded
commitments that will settle on future dates. Credit risks exist on these commitments to the extent of any difference between the sales price and current value of the underlying securities sold. Market risk exists on these commitments to buy to the
same extent as if the securities were owned on a settled basis and gains and losses are recorded and reported in the same manner. However, during the commitment period, these investments earn no interest or dividends.
|
At June 30, 2011, the Fund did not have any outstanding unfunded
loan commitments.
2.
|
|
COMMON STOCK
At June 30, 2011, there were 49,996,320 shares of common stock with a $0.01 par
value authorized and 12,958,759 shares outstanding. During the six months ended June 30, 2011, and the year ended December 31, 2010, the Fund issued 2,141 and 5,713 shares of common stock, respectively, in connection with its dividend
reinvestment plan.
|
3.
|
|
PREFERRED STOCK
On June 29, 2001, the Fund issued shares of Series W Auction Rate Cumulative
Preferred Stock (ARPS) at an offering price of $25,000 per share. Dividends on these shares are paid weekly at an annual rate determined by a weekly auction or, in the absence of a successful auction, at a maximum rate as calculated in
accordance with the Funds Articles Supplementary for Auction Rate Cumulative Preferred Stock. In general, the holders of the ARPS and the common stock vote together as a single class, except that the ARPS stockholders, as a separate class,
vote to elect two members of the Board of Directors. The ARPS have a liquidation value of $25,000 per share, plus accumulated and unpaid dividends. At June 30, 2011, accrued ARPS dividends were $226.
|
The Fund is subject to certain limitations and restrictions associated
with outstanding shares of ARPS, including maintaining an asset coverage ratio of 200% for such shares. Failure to comply with these limitations and restrictions could preclude the Fund from declaring any dividends or distributions to common
stockholders or repurchasing common shares and/or could trigger the mandatory redemption of Preferred Stock at their liquidation value.
The weekly auction for the ARPS issued by the Fund has failed since February 13, 2008, due to insufficient demand (bids to buy shares) to meet
supply (shares offered for sale) at the auction. Holders of preferred shares who wish to sell will not be able to do so until there is a successful auction with sufficient demand for the shares. Failed auctions are not considered a default by the
Fund and do not alter the credit quality of the ARPS. However, failed auctions may increase the cost of the Funds leverage and decrease the income available for common stockholders. ARPS holders have continued to receive dividends at the
maximum rate set on the date of the failed auction, and the redemption price of $25,000 per share (plus accumulated but
32
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Notes to Financial Statements (Unaudited)
(continued)
unpaid dividends, if any) is unaffected. Based on the rating assigned to the Funds ARPS, the maximum rate may range from 150%-275% of the AA Financial Composite Commercial Paper
Rate as of a given auction date. The maximum rate incurred during the six months ended June 30, 2011, ranged from 0.06% to 0.285%. The maximum rate as of the August 10, 2011 auction was 0.075%, which is 150% of the AA Financial
Composite Commercial Paper Rate on that date.
See Note 4
for discussion of interest rate swaps used to partially hedge the ARPS dividend payment obligations.
4.
|
|
INTEREST RATE SWAPS
Interest rate swaps are agreements between the counterparties to exchange periodic interest
payments based on interest rates. One cash flow stream will typically be a floating rate payment based upon a specified interest rate while the other is typically a fixed interest rate.
|
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 ARPS.
The Fund may be subject to various risks from the use of interest rate swaps including: (i) the risk that changes in the value of an interest
rate swap may not correlate perfectly with the underlying asset, rate or index; (ii) counterparty credit risk related to the failure, by the counterparty to the swap, to perform under the terms of the contract; (iii) liquidity risk related
to the lack of a liquid market for these contracts allowing the Fund to close out its position(s); and, (iv) documentation risk relating to disagreement over contract terms. Investing in swaps also results in a form of leverage and as such, the
Funds risk of loss associated with these instruments may exceed their value, as recorded in the Statement of Assets and Liabilities.
The table below discloses the volume of the Funds interest rate swaps activities during the six months ended June 30, 2011:
|
|
|
|
|
Interest Rate Swap Contracts:
|
|
|
|
Average Notional Balance Long
|
|
$
|
5,000,000
|
(a)
|
Ending Notional Balance Long
|
|
|
|
|
|
(a)
|
|
For the period January 1, 2011 through May 31, 2011.
|
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 0.185% to 0.266% during the six months ended
June 30, 2011.
At June 30, 2011, there were no
interest swap contracts outstanding.
For the six months
ended June 30, 2011, the Funds receipts under the swap agreements were less than the amount paid and accrued to Citibank by $94,815 and are shown in net realized gain (loss) in the accompanying Statement of Operations.
5.
|
|
PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding short-term securities) for the six
months ended June 30, 2011, aggregated $48,675,820 and $49,012,231, respectively. During the six months ended June 30, 2011, there were no purchases or sales of U.S. Government securities.
|
6.
|
|
TRANSACTIONS WITH INVESTMENT ADVISOR,
ADMINISTRATOR, ACCOUNTING SERVICES AGENT AND CUSTODIAN
JPMIM, an
indirect, wholly-owned subsidiary of JPMorgan Chase & Co., serves as investment advisor to the Fund under an Investment Advisory Agreement (the Advisory Agreement). Under the Advisory Agreement, JPMIM is entitled to receive an
annual investment advisory fee (the Performance Fee), computed and paid monthly after the end of each calendar month, at a rate that increases or decreases from a fulcrum fee of 0.90% of the Funds average net assets
over a rolling 12-month period. The increase or decrease is calculated by comparing the total return investment performance of the Fund (net of all fees and expenses, including the advisory fee) for the prior 12-month period (the Fund
Return) to the percentage change in the CSFB High Yield Index, Developed Countries Only (the Index) for the same period. The fee rate is 0.90% of the Funds average net assets if the performance of the Fund Return equals the
Index Return. The fee rate increases or decreases from the 0.90% fulcrum fee by 10% of the difference between the Fund Return and the Index Return, up to the maximum fee rate of 1.40% or down to the minimum fee rate of 0.40%. The fee
rate is calculated monthly based on the performance of the Fund compared to the Index during the rolling twelve month period. This rate is applied to the average net assets (defined as the total assets of the Fund minus liabilities other than the
principal amount of any outstanding senior securities representing indebtedness and the liquidation preference of the ARPS) during the entire 12-month period. The compensation due to the Advisor after the end of each month shall be equal to 1/12th
of the amount of the advisory fee calculated as stated above.
|
33
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Notes to Financial Statements (Unaudited)
(continued)
The effective advisory fee rate calculated for the six month period
ended June 30, 2011, was an annual effective rate of 1.40%. Advisory fees calculated for the semi-annual period ended June 30, 2011, resulted in a net expense to the Fund of $1,078,381.
The Fund has an administrative services agreement with JPMorgan Funds
Management, Inc. (the Administrator or JPMFM) (an affiliate of JPMIM) pursuant to which the Administrator provides administrative services to the Fund. Under the agreement, the Administrator receives from the Fund a fee,
accrued at least weekly and paid monthly, at the annual rate of 0.10% of the average weekly net assets of the Fund. At June 30, 2011, accrued administrative fees were $9,526.
JPMFM and JPMIM have agreed that JPMFM will not increase the 10 basis
point fee payable under the Funds administrative services contract through December 31, 2012.
J.P. Morgan Investor Services, Co. (JPMIS), an indirect, wholly-owned subsidiary of JPMorgan Chase & Co., is the Funds
sub-administrator. For its services as sub-administrator, JPMIS receives a portion of the fees payable to the Administrator.
The Fund has a Global Custody and Fund Accounting Agreement (the Agreement) with JPMCB. For providing custody services under the
Agreement, JPMCB is entitled to a fee from the Fund, accrued weekly and paid monthly. The amounts paid directly to JPMCB by the Fund for custody and accounting services are included in Custodian and accounting fees in the Statement of Operations.
The custodian fees may be reduced by credits earned by the Fund, based on uninvested cash balances held by the custodian. Such earnings credits are presented separately in the Statement of Operations.
Interest expense, if any, paid to the custodian related to cash
overdrafts is included in Interest expense to affiliates in the Statement of Operations.
In addition JPMFM and JPMIM have agreed to cap director compensation expenses and legal fees payable by the Fund through December 31, 2012, at the amount of such compensation and fees for 2007 (exclusive of
extraordinary director compensation and legal fees attributable to the 2008 Board consolidation whereby the former Board of Directors was elected). The agreed-upon cap does not apply to director compensation expenses for special meetings or to legal
fees incurred with respect to matters not in the ordinary course of the Funds business.
In addition to investing cash collateral from securities lending in a J.P. Morgan money market fund, the Fund may invest in one or more money market funds advised by the Advisor or its affiliates. The Advisor and
Administrator waive fees in an amount sufficient to offset the advisory, administration and shareholder servicing fees each charged to the affiliated money market fund on the Funds investment in such affiliated money market fund. A portion of
the waiver is voluntary.
The amount of waivers resulting
from investments in the money market funds for the six months ended June 30, 2011 was $2,245.
JPMCB provides derivative collateral management services for the Fund. The amounts paid directly to JPMCB by the Fund for these services are included in the Collateral Management fees on the Statement of
Operations.
Certain officers of the Fund are affiliated
with the Advisor, the Administrator and the Distributor. Such officers, with the exception of the Chief Compliance Officer, receive no compensation from the Fund for serving in their respective roles.
The Board of Directors appointed a Chief Compliance Officer to the Fund
in accordance with federal securities regulations. The Fund, along with other affiliated funds, makes reimbursement payments, on a pro-rata basis, to the Administrator for a portion of the fees associated with the Office of the Chief Compliance
Officer. Such fees are included in Directors and Chief Compliance Officers fees in the Statement of Operations.
The Fund adopted a Directors Deferred Compensation Plan (the Plan) which allows the Independent Directors to defer the receipt of
all or a portion of compensation related to performance of their duties as a Director. The deferred fees are invested in various J.P. Morgan Funds until distribution in accordance with the Plan.
7.
|
|
COMPONENTS OF ACCUMULATED EARNINGS (LOSSES)
At June 30, 2011, the components of net assets applicable to common stockholders (excluding paid in capital) on a tax basis were as
follows:
|
|
|
|
|
|
|
|
June 30,
2011
|
|
Gross unrealized appreciation on investments
|
|
$
|
8,837,331
|
|
Gross unrealized depreciation on investments
|
|
|
(9,509,311
|
)
|
|
|
|
|
|
Net unrealized appreciation/(depreciation) on investments
|
|
$
|
(671,980
|
)
|
|
|
|
|
|
Cost of investments for Federal Tax purposes
|
|
$
|
155,675,657
|
|
34
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Notes to Financial Statements (Unaudited)
(continued)
Under the recently enacted Regulated Investment Company Modernization
Act of 2010 (the Act), net capital losses recognized by the Fund after December 31, 2010, may get carried forward indefinitely, and retain their character as short-term and/or long term losses. Prior to this Act, pre-enactment net
capital losses incurred by the Fund were carried forward for eight years and treated as short-term losses. The Act requires under the transition that post-enactment net capital losses are used before pre-enactment net capital losses.
8.
|
|
ILLIQUID
SECURITIES
Certain securities held by the Fund may be subject to
legal or contractual restrictions on resale or are illiquid. An illiquid security is a security which cannot be disposed of promptly (within seven days) and in the usual course of business at approximately its fair value and includes, but is not
limited to, repurchase agreements maturing in excess of seven days, time deposits with a withdrawal penalty, non-negotiable instruments and instruments for which no market exists. Disposal of these securities may involve time-consuming negotiations
and expense, and prompt sale at the current valuation may be difficult. At June 30, 2011, the Fund held illiquid securities representing 5.9% of net assets applicable to common stockholders.
|
9.
|
|
RISKS, CONCENTRATIONS AND INDEMNIFICATIONS
The Fund invests at least 80% of its assets in high yield debt securities. Investments in lower-rated securities or unrated securities of
comparable quality tend to be more sensitive to economic conditions than higher rated securities. These securities involve a greater risk of default by the issuer because such securities are generally unsecured and are often subordinated to other
creditors claims.
|
The ability of the
issuers of debt and asset-backed securities, including sub-prime securities, along with counterparties to swap agreements, to meet their obligations may be affected by the economic and political developments in a specific industry or region. The
value of asset-backed securities, including sub-prime securities, can be significantly affected by changes in interest rates or rapid principal payments including prepayments.
The Funds officers and directors are indemnified against certain
liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for general indemnifications. The Funds maximum
exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund. However, based on experience, the Fund expects the risk of loss to be remote.
The Fund is party to a derivative contract governed by International
Swaps and Derivatives Association Master Agreements (ISDA agreements) with a counterparty. The Funds ISDA agreement, which is separately negotiated with the dealer counterparty, may contain provisions allowing, absent other
considerations, the counterparty to exercise rights, to the extent not otherwise waived, against the Fund in the event the Funds net assets decline over time by a pre-determined percentage or fall below a pre-determined floor. Such rights
often include the ability to terminate (i.e., close out) open contracts at prices which may favor the counterparty, which could have an adverse impact on the Fund.
Citigroup and Morgan Stanley are beneficial owners of a significant
portion of the Funds outstanding ARPS and based on such ownership, could each be deemed to be an affiliate of the Fund. Both Citigroup and Morgan Stanley have informed the Fund that they intend to comply with a No Action Letter that enables
them not to be deemed affiliates of the Fund. These parties could have an impact on matters that affect the Funds shareholders due to the voting rights associated with the ARPS, as detailed in the Preferred Stock note, included in
this report.
As of June 30, 2011, the Fund is a party
to certain securities loans and loan participations and assignments that were transacted with either Citigroup or Morgan Stanley in the normal course of business.
The Fund is subject to interest rate and credit risk. The value of debt
securities may decline as interest rates increase. The Fund could lose money if the issuer of a fixed income security is unable to pay interest or repay principal when it is due. The ability of the issuers of debt to meet their obligations may be
affected by the economic and political developments in a specific industry or region.
The Fund is also subject to counterparty credit risk, which is the risk that a counterparty fails to perform on agreements with the Fund such as swap contracts.
The Fund is subject to risks associated with asset-backed and
mortgage-related securities such as collateralized mortgage obligations backed by sub-prime mortgage loans. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate value,
prepayments, delinquencies and/or defaults, and may be adversely affected by shifts in the markets perception of the issuers and changes in interest rates.
35
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Notes to Financial Statements (Unaudited)
(concluded)
The Fund is subject to the risk that should the Fund decide to sell an
illiquid investment when a ready buyer is not available at a price the Fund deems representative of its value, the value of the Funds net assets could be adversely affected.
36
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Annual Meeting Results (Unaudited)
The Fund held its 2011 annual meeting of shareholders on April 27,
2011, for the purpose of considering and voting upon the following proposals:
The results of voting were as follows (by number of shares):
|
|
|
|
|
Proposal 1: For nominees to the Board of Directors
|
|
|
|
|
|
|
Fergus Reid,
III
1
|
|
|
|
|
In Favor
|
|
|
11,050,113
|
|
Withheld
|
|
|
444,564
|
|
|
|
William J.
Armstrong
1
|
|
|
|
|
In Favor
|
|
|
11,085,416
|
|
Withheld
|
|
|
409,261
|
|
|
|
John F. Finn
1
|
|
|
|
|
In Favor
|
|
|
11,114,667
|
|
Withheld
|
|
|
380,010
|
|
|
|
Dr. Matthew
Goldstein
1
|
|
|
|
|
In Favor
|
|
|
11,027,557
|
|
Withheld
|
|
|
467,120
|
|
|
|
Robert J.
Higgins
1
|
|
|
|
|
In Favor
|
|
|
11,077,362
|
|
Withheld
|
|
|
417,315
|
|
|
|
Frankie D.
Hughes
1
|
|
|
|
|
In Favor
|
|
|
11,040,138
|
|
Withheld
|
|
|
454,539
|
|
|
|
Peter C.
Marshall
1
|
|
|
|
|
In Favor
|
|
|
11,069,580
|
|
Withheld
|
|
|
425,097
|
|
|
|
Marilyn
McCoy
1
|
|
|
|
|
In Favor
|
|
|
11,028,927
|
|
Withheld
|
|
|
465,750
|
|
|
|
William G. Morton,
Jr.
1
|
|
|
|
|
In Favor
|
|
|
11,051,603
|
|
Withheld
|
|
|
443,074
|
|
|
|
Robert A. Oden,
Jr.
1
|
|
|
|
|
In Favor
|
|
|
11,041,235
|
|
Withheld
|
|
|
453,442
|
|
|
|
|
|
|
Leonard M. Spalding,
Jr.
1
|
|
|
|
|
In Favor
|
|
|
11,041,990
|
|
Withheld
|
|
|
452,687
|
|
|
|
Frederick W.
Ruebeck
2
|
|
|
|
|
In Favor
|
|
|
1,572
|
|
Withheld
|
|
|
13
|
|
|
|
James J.
Schonbachler
2
|
|
|
|
|
In Favor
|
|
|
1,572
|
|
Withheld
|
|
|
13
|
|
1
|
|
Elected by the holders of the Funds Auction Rate Preferred Stock and Common Stock voting together as a single class.
|
2
|
|
Elected by holders of the Funds Auction Rate Preferred Stock voting separately as a class.
|
37
P
ACHOLDER
H
IGH
Y
IELD
F
UND,
I
NC.
Supplemental Information (Unaudited)
Portfolio Holdings Information
No sooner than 10 days after the end of each month, the Funds uncertified complete schedule of its portfolio holdings as well as certain other fund facts and statistical information 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 Funds Forms N-Q are available, without charge, on the SECs website at www.sec.gov. The Funds Forms N-Q may be reviewed and copied at the SECs Public Reference Room in Washington, DC. Information on the operation of the
Public Reference Room may be obtained by calling 1-800-SEC-0330.
No sooner
than 10 calendar days after the end of each month, the Funds top 10 holdings as of the last day of each month as well as certain other fund facts and statistical information will also be available on the Funds website.
Proxy Voting
A description of the policies and procedures used by the Fund to vote proxies relating
to portfolio securities, as well as information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available (i) without charge, on the Funds website at
www.pacholder.com and (ii) on the SECs website at www.sec.gov.
Dividend Reinvestment Plan
The Funds Dividend Reinvestment Plan (the Plan) offers Common Stockholders (Shareholders) a convenient way to invest their income dividends and capital gain distributions in additional
shares of the Funds common stock.
Shareholders who participate in the
Plan will have all income dividends and capital gain distributions automatically reinvested by Computershare Investor Services LLC (the Plan Agent) pursuant to the Plan. When a dividend is declared, Shareholders who do not participate in
the Plan will receive all distributions in cash, paid by check, mailed directly to the Shareholder of record (or if the shares are held in street name or nominee name, then to the nominee) by the Plan Agent, which serves as agent for the
Shareholders in administering the Plan. Shareholders who participate in the Plan will receive the equivalent in shares of the Fund valued at the lower of market price or net asset valued as described below. (i) If the shares are trading at net
asset value or at a premium above net asset value on the payment date, the Fund will issue new shares at the greater of net asset value or 95% of the current market price. (ii) If the shares are trading at a discount from net asset value on
payment date, the Plan Agent will receive the dividend or distribution in cash and apply it to the purchase of the Funds shares in the open market, on the NYSE Amex or elsewhere, for the participants accounts. If before the Plan Agent
has completed its purchases, the market price exceeds the net asset value per share, the average purchase price per share paid by the Plan Agent may exceed the exceed the net asset value of the Funds shares, resulting in the acquisition of
fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. If the purchases have not been made prior to 30 days after the payment date, the Plan Agent may receive the uninvested portion in newly issued shares.
The Plan Agents fees for handling the reinvestment of Dividends will
be paid by the Fund. There will be no brokerage charge to Shareholders for shares issued directly by the Fund as a result of dividends or distributions payable either in stock or cash. Each Shareholder who participates in the Plan, however will pay
pro rate share of brokerage commissions incurred with respect to the Plan Agents open-market-purchases in connection with the reinvestment of dividends or distributions.
The automatic reinvestment of income dividends and capital gain distributions will not
relieve a Shareholder of any federal, state or local income tax that may be payable on such dividends. Therefore, income and capital gains may still be realized even though Shareholders do not receive cash.
A Shareholder may terminate his/her account under the Plan by notifying the Plan Agent
in writing. Upon termination, a shareholder can either receive a certificate for the number of full shares held in the Plan and a check for fractional shares or have shares sold by the Plan Agent and the proceeds sent to the shareholder, less a
transaction fee of $15 plus $0.07 per share.
The Fund reserves the right to
amend or terminate the Plan. All correspondence concerning the Plan should be directed to the Plan Agent at Computershare Trust Company, N.A. Dividend Reinvestment Services, P.O. Box A3309, Chicago, IL 60690-3309, by calling 888-294-8217 or
www.computershare.com.
38
Rev. January 2011
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FACTS
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WHAT DOES PACHOLDER HIGH YIELD FUND, INC. DO WITH YOUR PERSONAL
INFORMATION?
|
|
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|
Why?
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|
Financial companies choose how they share your personal information.
Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we
do.
|
|
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What?
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The types of personal
information we collect and share depend on the product or service you have with us. This information can include:
n
Social Security number and account balances
n
transaction history and account transactions
n
checking account information and wire transfer instructions
When you are
no longer
our customer, we continue to share your information as described in this notice.
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|
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|
How?
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|
All financial companies need to share customers personal
information to run their everyday business. In the section below, we list the reasons financial companies can share their customers personal information; the reasons Pacholder High Yield Fund, Inc. chooses to share; and whether you can limit
this sharing.
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|
|
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Reasons we can share your personal information
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Does Pacholder
High Yield Fund,
Inc. share?
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|
Can you limit this
sharing?
|
For our everyday business purposes
such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit
bureaus
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Yes
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No
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For marketing purposes
to offer our products and services to you
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Yes
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No
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For joint marketing with other financial companies
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|
No
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|
We dont share
|
For our affiliates everyday
business purposes
information about your transactions and experiences
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|
No
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|
We dont share
|
For our affiliates everyday
business purposes
information about your creditworthiness
|
|
No
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|
We dont share
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For nonaffiliates to market to you
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|
No
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We dont share
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Questions?
|
|
Call 1-877-217-9502 or go to www.pacholder.com
|
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Who we are
|
Who is providing this notice?
|
|
Pacholder High Yield Fund, Inc.
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|
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|
What we do
|
How does Pacholder High Yield Fund, Inc. protect my
personal information?
|
|
To protect your personal information from unauthorized access and use, we use security measures
that comply with federal law. These measures include computer safeguards and secured files and buildings. We authorize our employees to access your information only when they need it to do their work and we require companies that work for us to
protect your information.
|
How does Pacholder High Yield Fund, Inc. collect my
personal information?
|
|
We collect your personal information, for example,
when you:
n
open an account or provide account information
n
give us your account information or pay us by check
n
make a wire transfer
We also collect your personal information from others, such as credit bureaus, affiliates and other companies.
|
Why cant I limit all sharing?
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|
Federal law gives you the right to limit
only
n
sharing for affiliates everyday business purposes information about your
creditworthiness
n
affiliates from using your information to market to you
n
sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit
sharing.
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Definitions
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Affiliates
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|
Companies related by common ownership or control.
They can be financial and nonfinancial companies.
n
Pacholder High Yield Fund,
Inc. does not share with our affiliates.
|
Nonaffiliates
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Companies not related by common ownership or
control. They can be financial and nonfinancial companies.
n
Pacholder High Yield Fund,
Inc. does not share with nonaffiliates so they can market to you.
|
Joint Marketing
|
|
A formal agreement between nonaffiliated financial
companies that together market financial products or services to you.
n
Pacholder High Yield Fund,
Inc. doesnt jointly market.
|
ITEM 2. CODE OF ETHICS.
Disclose whether, as of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrants principal executive officer, principal financial
officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, explain
why it has not done so.
The registrant must briefly describe the nature of any amendment, during the period covered by the report, to a
provision of its code of ethics that applies to the registrants principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these
individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item. The registrant must file a copy of any such amendment as an exhibit pursuant
to Item 12(a)(1), unless the registrant has elected to satisfy paragraph (f) of this Item by positing its code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by undertaking to provide its code of ethics to any
person without charge, upon request, pursuant to paragraph (f)(3) of this Item.
If the registrant has, during the period covered by the
report, granted a waiver, including an implicit waiver, from a provision of the code of ethics that applies to the registrants principal executive officer, principal financial officer, principal accounting officer or controller, or persons
performing similar functions, regardless of whether these individuals are employed by the registrant or third party, that relates to one or more items set forth in paragraph (b) of this Item, the registrant must briefly describe the nature of
the waiver, the name of the person to whom the waiver was granted, and the date of the waiver.
Not applicable to a semiannual report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrants board of directors has determined that the registrant either:
(i) Has at least one audit committee financial expert serving on its audit committee; or
(ii) Does not have an audit committee financial expert serving on its audit committee.
(2) If the registrant provides the disclosure required by paragraph (a)(1)(i) of this Item, it must disclose the name of the audit committee financial expert and whether that person is
independent. In order to be considered independent for purposes of this Item, a member of an audit committee may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other
board committee:
(i) Accept directly or indirectly any consulting, advisory, or other compensatory fee from
the issuer; or
(ii) Be an interested person of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
(3) If the registrant provides the disclosure
required by paragraph (a)(1)(ii) of this Item, it must explain why it does not have an audit committee financial expert.
Not applicable to
a semiannual report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption Audit Fees, the aggregate fees billed for each of the last two fiscal years for professional services rendered by the
principal accountant for the audit of the registrants annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years.
(b) Disclose, under the caption Audit-Related Fees, the aggregate fees billed in each of the last two fiscal years for assurance and related services by
the principal accountant that are reasonably related to the performance of the audit of the registrants financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
(c) Disclose, under the caption Tax Fees, the aggregate fees billed in each of the last
two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
(d) Disclose, under the caption All Other Fees, the aggregate fees billed in each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
(e) (1) Disclose the audit committees pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were
approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) If greater than 50 percent, disclose
the percentage of hours expended on the principal accountants engagement to audit the registrants financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal
accountants full-time, permanent employees.
(g) Disclose the aggregate non-audit fees billed by the registrants accountant for
services rendered to the registrant, and rendered to the registrants investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any
entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant.
(h) Disclose whether the registrants audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrants investment
adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser
that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountants independence.
Not applicable to a semiannual report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
(a) If the registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act (17CFR 240.10A-3), state whether or not the registrant has a separately-designated standing audit committee
established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has such a committee, however designated, identify each committee member. If the entire board of directors is acting as the
registrants audit committee as specified in Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)), so state.
(b) If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act (17CFR
240.10A-3(d)) regarding an exemption from the listing standards for all audit committees.
Not applicable to a semiannual report.
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule I Investments in securities of unaffiliated issuers as of the close of the reporting period as set forth in Section 210.12-12 of Regulation S-X, unless the schedule is included
as part of the report to shareholders filed under Item 1 of this Form.
Included in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on this Form N-CSR must, unless it invests exclusively in
non-voting securities, describe the policies and procedures that it uses to determine how to vote proxies relating to portfolio securities, including the procedures that the company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the companys investment adviser; principal underwriter; or any affiliated person (as defined in Section 2(a)(3) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal underwriter, on the other. Include any policies and procedures of the companys investment adviser, or any other third party, that the company uses, or that are used on the
companys behalf, to determine how to vote proxies relating to portfolio securities.
Not applicable to a semiannual report.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to a semiannual report.
ITEM 9. PURCHASE OF EQUITY SECURITIES BY
CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
provide the information specified in paragraph (b) of this Item with respect to any purchase made by or on behalf of the registrant or any affiliated purchaser, as defined in Rule 10b-18(a)(3) under the Exchange Act (17 CFR
240.10b-18(a)(3)), of shares or other units of any class of the registrants equity securities that is registered by the registrant pursuant to Section 12 of the Exchange Act (15 U.S.C. 78
1
).
There were no purchases covered by this Item during the period covered by this report.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes
to the procedures by which shareholders may recommend nominees to the registrants board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of
Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this Item.
No material changes to report.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrants principal executive and principal financial officers, or persons performing similar functions, regarding the effectiveness of the registrants
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of
these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The Registrants principal executive and principal financial officers have
concluded, based on their evaluation of the Registrants disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrants disclosure controls and procedures are reasonably designed to
ensure that information required to be disclosed by the Registrant on Form N-CSR 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-CSR is accumulated and communicated to the Registrants management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) Disclose any change in the registrants internal control over financial reporting (as defined in Rule 30a-3(d)
under the Act (17 CFR 270.30a-3(d)) that occurred during the registrants second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal
control over financial reporting.
There were no changes in the Registrants internal control over financial reporting that occurred
during the last fiscal quarter covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrants internal control over financial reporting.
ITEM 12. EXHIBITS.
(a) File the exhibits
listed below as part of this Form. Letter or number the exhibits in the sequence indicated.
(a)(1) Any code of ethics, or
amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit.
Not applicable.
(a)(2)
A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2).
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 are attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or
more persons.
Not applicable.
(b) A separate or combined certification for each principal executive officer and principal officer of the registrant as required by Rule 30a-2(b) under the Act of 1940.
Certifications pursuant to Rule 30a-2(b) 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
|
|
|
Patricia A. Maleski
|
|
|
President and Principal Executive Officer
|
|
|
September 2, 2011
|
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.
|
|
|
By:
|
|
/s/
Patricia A. Maleski
|
|
|
Patricia A. Maleski
|
|
|
President and Principal Executive Officer
|
|
|
September 2, 2011
|
|
|
By:
|
|
/s/
Joy C. Dowd
|
|
|
Joy C. Dowd
|
|
|
Treasurer and Principal Financial Officer
|
|
|
September 2, 2011
|
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