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

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

Directors and Officers

Fergus Reid, III

Chairman and Director

William J. Armstrong

Director

John F. Finn

Director

Dr. Matthew Goldstein

Director

Robert J. Higgins

Director

Frankie D. Hughes

Director

Peter C. Marshall

Director

Marilyn McCoy

Director

William G. Morton, Jr.

Director

Robert A. Oden, Jr.

Director

Frederick W. Ruebeck

Director

James J. Schonbachler

Director

Leonard M. Spalding, Jr.

Director

Patricia A. Maleski

President and Principal Executive Officer

Joy C. Dowd

Treasurer and Principal Financial Officer

Stephen M. Ungerman

Chief Compliance Officer

Frank J. Nasta

Secretary

Investment Objective

A closed-end fund seeking a high level of total return

through current income and capital appreciation by

investing primarily in high-yield, fixed income securities

of domestic companies.

Investment Advisor

J.P. Morgan Investment Management Inc.

Administrator

JPMorgan Funds Management, Inc.

Custodian

JPMorgan Chase Bank, N.A.

Transfer Agent

Computershare Trust Company, N.A.

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

Independent Directors’ Counsel

Kramer Levin Naftalis & Frankel LLP

Executive Offices

Pacholder High Yield Fund, Inc.

270 Park Avenue

New York, NY 10017

Shareholder Services

(877) 217-9502

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

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

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

T HIRD Q UARTER

S EPTEMBER 30, 2011

(U NAUDITED )

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

(Unaudited)

Dear Shareholders:

2011 Third Quarter Review

In the third quarter of 2011, high yield bonds (also known as “junk bonds”) declined as investors lost their appetite for risk. Uncertainty surrounding global economic growth dampened investors’ appetite for risk early in the quarter. This negative mood among investors worsened as the market seemed to lack confidence in the ability of European governments to combat the region’s debt crisis, stoking fear about economic contagion. Concerns about the credit downgrade of U.S.-issued debt exacerbated this negative sentiment among investors. Each of these factors helped trigger a sharp downturn among high yield bonds in the third quarter of 2011.

For the third quarter 2011, the Pacholder High Yield Fund, Inc. (the “Fund”) returned -11.79% based on Net Asset Value (“NAV”) compared to the -5.13% return for the Credit Suisse High Yield Index, Developed Countries Only (the “Index”) and the -7.39% average total return of the Morningstar Closed-End High Yield Category.

The Fund’s relative underperformance versus the Index for the third quarter 2011 was due in large part to security selection in the consumer products, food & tobacco, forest products & containers, housing, and information technology sectors. On industry allocation, overweights in financial, gaming & leisure, and media/telecom along with an underweight in the utilities sector weighed on returns. Security selection in the energy sector and, underweights in energy, healthcare, and metals & minerals added to returns. The Fund’s relative underperformance was magnified due to its leverage obtained through its Auction Rate Preferred Shares (“ARPS”).

According to Moody’s Investor Services, Inc. (Moody’s), the global speculative-grade issuer-weighted default rate decreased to 1.8% in September 2011 from the June 2011 rate of 2.2%. Moody’s predicted, under its baseline scenario, that the global speculative-grade default rate will continue to stay in low levels between 1.4% and 2.1% during the next twelve months.

As of September 30 2011, the Fund’s largest sector concentration was in consumer discretionary, which accounted for 29.9% of its market value. For third quarter 2011, the average price of the Index decreased $7.91 from $102.94 to $95.03, the average yield increased 1.84% from 7.42% to 9.26% and the spread over the comparable U.S. Treasury widened 2.42% from 5.69% to 8.11%.

Fund Strategy

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

Auction Rate Preferred Shares and Dividends

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

From January 2011 thru March 2011, 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.

Sincerely,

LOGO

George C.W. Gatch

CEO-Investment Management Americas

J.P. Morgan Asset Management

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

(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 investor’s shares, when sold, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown.

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

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

Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting and legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.

Availability of Portfolio Holdings and Other Information

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

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

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

Schedule of Portfolio Investments

As of September 30, 2011 (Unaudited)


Description	Par (000)			Value		Percent of Net Assets*

CONVERTIBLE BOND — 0.1%
MATERIALS — 0.1%
CONSTRUCTION MATERIALS — 0.1%
U.S. Concrete, Inc., Private Placement, Sec’d Nt, 9.500%, 08/31/15 ² (cost $46,000)	$	46		$	40,078		0.1	%

CORPORATE BONDS — 110.5%
CONSUMER DISCRETIONARY — 32.2%
AUTOMOBILES — 2.0%
Chrysler Group LLC/CG Co-Issuer, Inc., Private Placement, Sr Sec’d Nt,
8.000%, 06/15/19 ²		200			156,000		0.2
8.250%, 06/15/21 ²		200			154,000		0.1
Ford Holdings LLC,
9.300%, 03/01/30		262			335,057		0.3
9.375%, 03/01/20 ¹⁰		150			171,031		0.2
Ford Motor Co.,
7.750%, 06/15/43		750			781,802		0.8
8.900%, 01/15/32		125			152,053		0.2
Ford Motor Co., Nt, 9.980%, 02/15/47		125			155,762		0.2
Motors Liquidation Co.,
0.000%, 03/15/36 ^1,4		55 Units			275		0.0	¹²
5.250%, 03/06/32		25 Units			7,489		0.0	¹²
6.250%, 07/15/33		15 Units			4,461		0.0	¹²
7.250%, 04/15/41		–Units	¹¹		64		0.0	¹²
7.250%, 07/15/41		–Units	¹¹		28		0.0	¹²
7.250%, 02/15/52		7 Units			2,190		0.0	¹²
7.375%, 05/15/48		10 Units			2,896		0.0	¹²
7.375%, 10/01/51		–Units	¹¹		73		0.0	¹²
Motors Liquidation Co., Debentures,
6.750%, 05/01/28 ^1,4		50			500		0.0	¹²
8.100%, 06/15/24 ^1,4		1,725			17,250		0.0	¹²
8.375%, 07/15/33 ^1,4		425			4,250		0.0	¹²

					1,945,181		2.0
BROADCASTING & CABLE TV — 5.5%
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			1,200		0.0	¹²
9.375%, 11/15/09 ^1,4		560			896		0.0	¹²
Cablevision Systems Corp., 8.000%, 04/15/20		205			208,587		0.2
Description	Par (000)			Value		Percent of Net Assets*

BROADCASTING & CABLE TV — (continued)
Cablevision Systems Corp., Sr Unsec’d Nt, 7.750%, 04/15/18	$	80		$	80,800		0.1	%
CCO Holdings LLC/CCO Holdings Capital Corp., 7.000%, 01/15/19		235			227,950		0.2
CCO Holdings LLC/CCO Holdings Capital Corp., Co Guar,
6.500%, 04/30/21		300			283,500		0.3
7.250%, 10/30/17		340			340,000		0.3
7.875%, 04/30/18		90			91,575		0.1
8.125%, 04/30/20		550			572,000		0.6
CCO Holdings LLC/CCO Holdings Capital Corp., Private Placement, 7.000%, 01/15/19 ²		90			87,075		0.1
Cequel Communications Holdings I LLC and Cequel Capital Corp., Private Placement, Sr Nt, 8.625%, 11/15/17 ²		599			593,010		0.6
CSC Holdings LLC,
7.625%, 07/15/18		50			52,250		0.1
8.625%, 02/15/19		44			48,290		0.0	¹²
CSC Holdings LLC, Sr Nt, 7.875%, 02/15/18		96			100,800		0.1
DISH DBS Corp., Private Placement, Co Guar, 6.750%, 06/01/21 ²		360			343,800		0.4
DISH DBS Corp., Sr Nt, Co Guar, 7.875%, 09/01/19		215			219,300		0.2
Insight Communications Co., Inc., Private Placement, Sr Nt, 9.375%, 07/15/18 ²		215			240,800		0.2
Mediacom Broadband LLC/Mediacom Broadband Corp., Sr Unsec’d Nt, 8.500%, 10/15/15		67			66,665		0.1
Mediacom LLC/Mediacom Capital Corp., 9.125%, 08/15/19		342			340,290		0.4
Sirius XM Radio, Inc., Private Placement, 9.750%, 09/01/15 ²		150			162,375		0.2
Telesat Canada/Telesat LLC, (Canada),
11.000%, 11/01/15		136			145,520		0.1
12.500%, 11/01/17 ¹⁰		150			168,000		0.2
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, Private Placement, Sr Sec’d Nt, (Germany), 8.125%, 12/01/17 ²		375			375,000		0.4
Virgin Media Finance plc, (United Kingdom), 8.375%, 10/15/19		225			239,063		0.2

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

BROADCASTING & CABLE TV — (continued)
XM Satellite Radio, Inc., Private Placement, Sr Nt, 13.000%, 08/01/13 ²	$	330	$	369,600		0.4	%

				5,358,346		5.5
DIVERSIFIED CONSUMER SERVICES — 1.3%
Knowledge Learning Corp., Inc., Private Placement, Sr Sub Nt, 7.750%, 02/01/15 ^2,10		700		665,000		0.7
Mac-Gray Corp., Sr Nt, 7.625%, 08/15/15		650		658,125		0.6

				1,323,125		1.3
GAMING — 7.2%
Ameristar Casinos, Inc., Private Placement, Nt, 7.500%, 04/15/21 ²		285		275,738		0.3
Boyd Gaming Corp., Private Placement, Sr Nt, 9.125%, 12/01/18 ²		86		70,735		0.1
Caesars Entertainment Operating Co., Inc., 11.250%, 06/01/17		275		277,406		0.3
Chukchansi Economic Development Authority, Private Placement, 8.000%, 11/15/13 ²		766		518,965		0.5
CityCenter Holdings LLC/CityCenter Finance Corp., Private Placement, PIK, 11.500%, 01/15/17 ²		390		353,682		0.4
Downstream Development Authority of the Quapaw Tribe of Oklahoma, Private Placement, Sr Sec’d Nt, 10.500%, 07/01/19 ²		225		212,063		0.2
Isle of Capri Casinos, Inc., Sr Nt, 7.000%, 03/01/14		250		227,187		0.2
Isle of Capri Casinos, Inc., Sr Nt, Co Guar, 7.750%, 03/15/19		300		273,750		0.3
Mashantucket Western Pequot Tribe, Private Placement, 5.912%, 09/01/21 ^1,2,4		475		231,259		0.2
MCE Finance Ltd., Sr Sec’d Nt, (Cayman Islands), 10.250%, 05/15/18		225		238,500		0.2
MGM Resorts International, Co Guar, 6.625%, 07/15/15		231		195,773		0.2
7.500%, 06/01/16		170		147,475		0.1
7.625%, 01/15/17		201		172,357		0.2
MGM Resorts International, Private Placement, Nt, 10.000%, 11/01/16 ²		1,400		1,326,500		1.3
Description	Par (000)		Value		Percent of Net Assets*

GAMING — (continued)
Pinnacle Entertainment, Inc., 8.750%, 05/15/20	$	255	$	237,787		0.2	%
Pinnacle Entertainment, Inc., Nt, Co Guar, 8.625%, 08/01/17		200		201,500		0.2
ROC Finance LLC/ROC Finance 1 Corp., Private Placement, Sec’d Nt, 12.125%, 09/01/18 ²		260		262,600		0.3
San Pasqual Casino, Private Placement, 8.000%, 09/15/13 ²		500		488,750		0.5
Seminole Hard Rock Entertainment, Inc., Private Placement, VAR, 2.847%, 03/15/14 ²		500		445,000		0.5
Seminole Indian Tribe of Florida, Private Placement, 7.750%, 10/01/17 ²		75		75,375		0.1
Seneca Gaming Corp., Private Placement, 8.250%, 12/01/18 ²		175		168,437		0.2
Shingle Springs Tribal Gaming Authority, Private Placement, Sr Nt, 9.375%, 06/15/15 ^2,10		841		491,985		0.5
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp., Private Placement, Sec’d Nt, 8.625%, 04/15/16 ²		115		113,275		0.1
Yonkers Racing Corp., Private Placement, Sec’d Nt, 11.375%, 07/15/16 ²		100		102,000		0.1

				7,108,099		7.2
HOTELS, RESTAURANTS & LEISURE — 3.1%
Banc of America Large Loan, Inc., Private Placement, Series 2010-HLTN, Class HLTN, VAR, 1.979%, 11/15/15 ²		580		516,593		0.5
Burger King Corp., Sr Nt, Co Guar, 9.875%, 10/15/18		140		144,200		0.2
Cinemark USA, Inc., Sr Nt, Co Guar, 8.625%, 06/15/19		125		128,750		0.1
CKE Holdings, Inc., Private Placement, Nt, PIK, 10.500%, 03/14/16 ²		100		87,827		0.1
CKE Restaurants, Inc., Sr Sec’d Nt, 11.375%, 07/15/18		327		340,080		0.3
Dave & Buster’s, Inc., 11.000%, 06/01/18		30		29,775		0.0	¹²
DineEquity, Inc., Sr Nt, Co Guar, 9.500%, 10/30/18		170		168,725		0.2
Landry’s Holdings, Inc., Private Placement, 11.500%, 06/01/14 ²		100		92,500		0.1

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

HOTELS, RESTAURANTS & LEISURE — (continued)
Landry’s Restaurants, Inc., Private Placement, Sr Sec’d Nt, 11.625%, 12/01/15 ²	$	120	$	120,600		0.1	%
Landry’s Restaurants, Inc., Sr Sec’d Nt, 11.625%, 12/01/15		200		201,000		0.2
Real Mex Restaurants, Inc., 14.000%, 01/01/13		200		147,000		0.2
Royal Caribbean Cruises Ltd., Sr Nt, (Liberia), 11.875%, 07/15/15		231		267,960		0.3
Sizzling Platter LLC, Private Placement, Sr Sec’d Nt, 12.250%, 04/15/16 ²		50		49,250		0.1
Speedway Motorsports, Inc., Sr Nt, 8.750%, 06/01/16		300		312,750		0.3
Universal City Development Partners Ltd./UCDP Finance, Inc., 10.875%, 11/15/16		162		188,730		0.2
Wendy’s Co. (The) LLC, Nt, Co Guar, 10.000%, 07/15/16		200		210,500		0.2

				3,006,240		3.1
HOUSEHOLD DURABLES — 1.7%
American Standard Americas, Private Placement, 10.750%, 01/15/16 ²		100		76,000		0.1
Beazer Homes USA, Inc., Nt, Co Guar, 6.875%, 07/15/15		240		162,000		0.2
K Hovnanian Enterprises, Inc., Sr Nt, 10.625%, 10/15/16		445		333,750		0.3
Lennar Corp., Nt, Co Guar, 12.250%, 06/01/17		90		99,000		0.1
Lennar Corp., Sr Nt, 6.950%, 06/01/18		410		364,900		0.4
M/I Homes, Inc., Co Guar, 8.625%, 11/15/18		225		202,500		0.2
Standard Pacific Corp., Sec’d Nt, 8.375%, 05/15/18		165		140,250		0.1
Standard Pacific Corp., Sr Nt, 10.750%, 09/15/16		210		205,800		0.2
Standard Pacific Corp., Sr Nt, Co Guar, 8.375%, 01/15/21		90		74,025		0.1

				1,658,225		1.7
LEISURE EQUIPMENT & PRODUCTS — 1.0%
Eastman Kodak Co., Private Placement, 9.750%, 03/01/18 ²		740		518,000		0.5
FGI Holding Co., Inc., Co Guar, PIK, 13.000%, 10/01/15		238		232,231		0.3
Description	Par (000)		Value		Percent of Net Assets*

LEISURE EQUIPMENT & PRODUCTS — (continued)
Icon Health & Fitness, Private Placement, 11.875%, 10/15/16 ²	$	225	$	204,750		0.2	%

				954,981		1.0
MEDIA — 6.8%
Barrington Broadcasting Group LLC and Barrington Broadcasting Capital Corp., Sr Sub Nt, 10.500%, 08/15/14		700		658,000		0.7
Block Communications, Inc., Private Placement, Sr Nt, 8.250%, 12/15/15 ^2,10		800		802,000		0.8
Bresnan Broadband Holdings LLC, Private Placement, Co Guar, 8.000%, 12/15/18 ²		125		125,937		0.1
Clear Channel Communications, Inc., Sr Sec’d Nt, 9.000%, 03/01/21		400		297,000		0.3
Clear Channel Worldwide Holdings, Inc., Sr Nt, 9.250%, 12/15/17		250		255,625		0.3
9.250%, 12/15/17		125		126,875		0.1
Fisher Communications, Inc., Sr Nt, 8.625%, 09/15/14		364		363,090		0.4
Gannett Co., Inc., Nt, Co Guar, 6.375%, 09/01/15		50		49,625		0.0	¹²
7.125%, 09/01/18		200		191,000		0.2
Intelsat Jackson Holdings S.A., Co Guar, (Luxembourg), 8.500%, 11/01/19		150		146,625		0.2
Intelsat Jackson Holdings S.A., Private Placement, (Luxembourg), 7.250%, 10/15/20 ²		150		138,375		0.1
Intelsat Luxembourg S.A., (Luxembourg), PIK, 12.500%, 02/04/17		1,032		887,412		0.9
Intelsat Luxembourg S.A., Private Placement, Nt, Co Guar, (Luxembourg), PIK, 12.500%, 02/04/17 ²		160		137,600		0.1
Lamar Media Corp., Sr Sub Nt, 6.625%, 08/15/15		125		122,813		0.1
McClatchy Co. (The), 11.500%, 02/15/17		200		173,500		0.2
Media General, Inc., 11.750%, 02/15/17		480		379,200		0.4
NAI Entertainment Holdings LLC, Private Placement, 8.250%, 12/15/17 ²		100		103,000		0.1
Nexstar Broadcasting, Inc./Mission Broadcasting, Inc., 8.875%, 04/15/17		400		395,000		0.4
Nielsen Finance LLC/Nielsen Finance Co., Sr Nt, Co Guar, 7.750%, 10/15/18		50		51,000		0.1

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

MEDIA — (continued)
Radio One, Inc., Sr Sub Nt, Co Guar, PIK, 15.000%, 05/24/16	$	507	$	453,470		0.5	%
Regal Cinemas Corp., Nt, Co Guar, 8.625%, 07/15/19		100		101,750		0.1
Univision Communications, Inc., Private Placement, Sr Sec’d Nt, 6.875%, 05/15/19 ²		300		267,000		0.3
Valassis Communications, Inc., Sr Nt, Co Guar, 6.625%, 02/01/21		150		140,250		0.1
WMG Acquisition Corp., Private Placement, Co Guar, 11.500%, 10/01/18 ²		195		179,400		0.2
WMG Acquisition Corp., Private Placement, Sr Sec’d Nt, 9.500%, 06/15/16 ²		35		35,437		0.0	¹²
WMG Acquisition Corp., Sr Sec’d Nt, 9.500%, 06/15/16		100		101,250		0.1

				6,682,234		6.8
MULTILINE RETAIL — 0.6%
HSN, Inc., 11.250%, 08/01/16		323		353,685		0.4
Sears Holdings Corp., Sr Sec’d Nt, 6.625%, 10/15/18		250		206,250		0.2

				559,935		0.6
SPECIALTY RETAIL — 1.9%
Academy Ltd./Academy Finance Corp., Private Placement, Nt, Co Guar, 9.250%, 08/01/19 ²		75		69,750		0.1
Claire’s Stores, Inc., Sec’d Nt, 8.875%, 03/15/19		480		345,600		0.3
Gymboree Corp., Co Guar, 9.125%, 12/01/18		378		279,720		0.3
J. Crew Group, Inc., Sr Nt, Co Guar, 8.125%, 03/01/19		175		146,562		0.1
Michael’s Stores, Inc., Nt, Co Guar, 7.750%, 11/01/18		150		140,250		0.1
NBC Acquisition Corp., 11.000%, 03/15/13 ^1,4		270		2,700		0.0	¹²
Nebraska Book Co., Inc.,
8.625%, 03/15/12 ^1,4		370		144,300		0.2
10.000%, 12/01/11		345		303,600		0.3
Needle Merger Sub Corp., Private Placement, Sr Nt, 8.125%, 03/15/19 ²		200		174,000		0.2
Description	Par (000)		Value		Percent of Net Assets*

SPECIALTY RETAIL — (continued)
Toys R Us Property Co II LLC, Sr Sec’d Nt, 8.500%, 12/01/17	$	285	$	277,875		0.3	%

				1,884,357		1.9
TEXTILES, APPAREL & LUXURY GOODS — 1.1%
Broder Brothers Co., Private Placement, PIK, 12.000%, 10/15/13 ²		461		454,109		0.4
Quiksilver, Inc., 6.875%, 04/15/15		748		665,720		0.7

				1,119,829		1.1

Total Consumer Discretionary				31,600,552		32.2

CONSUMER STAPLES — 4.8%
BEVERAGES — 0.3%
Constellation Brands, Inc., Sr Nt, 8.375%, 12/15/14		315		345,712		0.3

FOOD & STAPLES RETAILING — 1.6%
Ingles Markets, Inc., 8.875%, 05/15/17		190		199,025		0.2
Rite Aid Corp., 9.500%, 06/15/17		1,000		790,000		0.8
Rite Aid Corp., Debentures, 7.500%, 03/01/17		600		573,000		0.6

				1,562,025		1.6
FOOD PRODUCTS — 1.6%
Blue Merger Sub, Inc., Private Placement, Sr Nt, 7.625%, 02/15/19 ²		245		207,025		0.2
Eurofresh, Inc., 15.000%, 11/18/16 ^3,9		454		399,713		0.4
JBS USA LLC/JBS USA Finance, Inc., Private Placement, Sr Unsec’d Nt, 7.250%, 06/01/21 ²		590		486,750		0.5
Pilgrim’s Pride Corp., Private Placement, Co Guar, 7.875%, 12/15/18 ²		278		211,975		0.2
Simmons Foods, Inc., Private Placement, 10.500%, 11/01/17 ²		325		281,125		0.3

				1,586,588		1.6
HOUSEHOLD PRODUCTS — 0.6%
Spectrum Brands Holdings, Inc., PIK, 12.000%, 08/28/19		596		645,457		0.6

PERSONAL PRODUCTS — 0.3%
American Achievement Corp., Private Placement, 10.875%, 04/15/16 ²		360		273,600		0.3

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

TOBACCO — 0.4%
Alliance One International, Inc., Nt, 10.000%, 07/15/16	$	440	$	363,000		0.4	%

Total Consumer Staples				4,776,382		4.8

ENERGY — 12.2%
ENERGY EQUIPMENT & SERVICES — 2.6%
Exterran Holdings, Inc., Private Placement, 7.250%, 12/01/18 ²		230		220,800		0.2
Global Geophysical Services, Inc., 10.500%, 05/01/17		50		48,500		0.1
Helix Energy Solutions Group, Inc., Private Placement, 9.500%, 01/15/16 ^2,10		125		126,875		0.1
Key Energy Services, Inc., Nt, 6.750%, 03/01/21		165		158,813		0.2
McJunkin Red Man Corp., Sr Sec’d Nt, 9.500%, 12/15/16		305		279,075		0.3
Ocean Rig UDW, Inc., Sr Unsec’d Nt, 9.500%, 04/27/16		500		435,000		0.4
Oil States International, Inc., Private Placement, Nt, Co Guar, 6.500%, 06/01/19 ²		360		351,900		0.4
PHI, Inc., 8.625%, 10/15/18		310		305,350		0.3
Seadrill Ltd., (Bermuda), 6.500%, 10/05/15		300		276,000		0.3
Sevan Marine ASA, Private Placement, (Norway), VAR, 3.417%, 05/14/13 ²		300		195,000		0.2
Trinidad Drilling Ltd., Private Placement, Sr Unsec’d Nt, (Canada), 7.875%, 01/15/19 ²		130		129,350		0.1

				2,526,663		2.6
OIL, GAS & CONSUMABLE FUELS — 9.6%
Alpha Natural Resources, Inc., Co Guar, 6.000%, 06/01/19		200		186,500		0.2
Alta Mesa Holdings/Alta Mesa Finance Services Corp., Co Guar, 9.625%, 10/15/18		240		218,400		0.2
AmeriGas Partners LP/AmeriGas Finance Corp., 6.500%, 05/20/21		145		139,925		0.1
Antero Resources Finance Corp., Nt, 9.375%, 12/01/17		102		106,080		0.1
Arch Coal, Inc., 7.250%, 10/01/20		80		76,800		0.1
Arch Coal, Inc., Private Placement, Co Guar, 7.000%, 06/15/19 ²		200		190,000		0.2
7.250%, 06/15/21 ²		200		192,500		0.2
Description	Par (000)		Value		Percent of Net Assets*

OIL, GAS & CONSUMABLE FUELS — (continued)
Bill Barrett Corp., 9.875%, 07/15/16	$	150	$	163,500		0.2	%
Bill Barrett Corp., Sr Nt, Co Guar, 7.625%, 10/01/19		130		127,725		0.1
Brigham Exploration Co., Co Guar, 8.750%, 10/01/18		125		133,750		0.1
Brigham Exploration Co., Sr Nt, Co Guar, 6.875%, 06/01/19		85		82,875		0.1
Calumet Specialty Products Partners LP/Calumet Finance Corp., Private Placement, Nt, Co Guar, 9.375%, 05/01/19 ²		100		93,000		0.1
Calumet Specialty Products Partners LP/Calumet Finance Corp., Private Placement, Sr Unsec’d Nt, 9.375%, 05/01/19 ²		125		115,000		0.1
Citgo Petroleum Corp., Private Placement, Sr Nt, 11.500%, 07/01/17 ²		300		339,000		0.3
Comstock Resources, Inc., 7.750%, 04/01/19		75		70,125		0.1
Comstock Resources, Inc., Sr Nt, 8.375%, 10/15/17		406		389,760		0.4
Concho Resources, Inc., Co Guar, 6.500%, 01/15/22		230		226,550		0.2
Consol Energy, Inc., 8.000%, 04/01/17		170		177,650		0.2
8.250%, 04/01/20		125		131,562		0.1
Continental Resources, Inc., 7.125%, 04/01/21		75		75,750		0.1
Eagle Rock Energy Partners LP/Eagle Rock Energy Finance Corp., Private Placement, Co Guar, 8.375%, 06/01/19 ²		300		288,000		0.3
El Paso Pipeline Partners Operating Co., LLC, 6.500%, 04/01/20		85		93,565		0.1
Energy XXI Gulf Coast, Inc., Sr Nt, Co Guar, 7.750%, 06/15/19		175		158,375		0.2
Ferrellgas LP/Ferrellgas Finance Corp., Sr Unsec’d Nt, 6.500%, 05/01/21		50		42,500		0.0	¹²
Foresight Energy LLC/Foresight Energy Corp., Private Placement, 9.625%, 08/15/17 ²		180		181,800		0.2
Forest Oil Corp., Nt, 7.250%, 06/15/19		269		264,965		0.3
Hilcorp Energy I LP/Hilcorp Finance Co., Private Placement, 7.625%, 04/15/21 ²		75		75,375		0.1

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

OIL, GAS & CONSUMABLE FUELS — (continued)
Holly Energy Partners LP/Holly Energy Finance Corp., Sr Unsec’d Nt, 8.250%, 03/15/18	$	130	$	135,850		0.1	%
HollyFrontier Corp., Nt, 9.875%, 06/15/17		70		75,600		0.1
Inergy LP/Inergy Finance Corp., Co Guar, 6.875%, 08/01/21		100		91,000		0.1
Inergy LP/Inergy Finance Corp., Co Guar, Sr Nt, 7.000%, 10/01/18		250		235,000		0.2
Linn Energy LLC/Linn Energy Finance Corp., Private Placement, Co Guar, 6.500%, 05/15/19 ²		145		133,400		0.1
MarkWest Energy Partners LP/MarkWest Energy Finance Corp., 6.750%, 11/01/20		150		152,250		0.2
NFR Energy LLC/NFR Energy Finance Corp., Private Placement, 9.750%, 02/15/17 ²		360		316,800		0.3
Patriot Coal Corp., 8.250%, 04/30/18		125		111,250		0.1
Penn Virginia Corp., 10.375%, 06/15/16		21		21,997		0.0	¹²
Penn Virginia Corp., Co Guar, 7.250%, 04/15/19		85		78,625		0.1
Penn Virginia Resource Partners LP/ Penn Virginia Resource Finance Corp., Sr Nt, 8.250%, 04/15/18		60		57,000		0.1
PetroHawk Energy Corp., Sr Nt, Co Guar, 6.250%, 06/01/19		260		295,100		0.3
Pioneer Drilling Co., 9.875%, 03/15/18		120		125,400		0.1
QEP Resources, Inc., 6.875%, 03/01/21		140		146,300		0.2
Range Resources Corp., 6.750%, 08/01/20		20		21,300		0.0	¹²
7.250%, 05/01/18		25		26,625		0.1
Regency Energy Partners LP/Regency Energy Finance Corp., Co Guar, 6.500%, 07/15/21		320		321,600		0.3
SM Energy Co., Private Placement, 6.625%, 02/15/19 ²		130		129,350		0.1
Swift Energy Co., 8.875%, 01/15/20		100		105,000		0.1
Swift Energy Co., Sr Nt, 7.125%, 06/01/17 ¹⁰		1,260		1,234,800		1.3
Targa Resources Partners LP/Targa Resources Partners Finance Corp., 8.250%, 07/01/16		280		291,200		0.3
Description	Par (000)		Value		Percent of Net Assets*

OIL, GAS & CONSUMABLE FUELS — (continued)
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Co Guar, 7.875%, 10/15/18	$	130	$	131,300		0.1	%
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Private Placement, 6.875%, 02/01/21 ²		200		192,000		0.2
Unit Corp., Co Guar, 6.625%, 05/15/21		70		69,650		0.1
Venoco, Inc., Sr Nt, Co Guar, 8.875%, 02/15/19		225		193,500		0.2
W&T Offshore, Inc., Private Placement, Sr Nt, 8.500%, 06/15/19 ²		235		227,950		0.2
Western Refining, Inc., Private Placement, VAR, 10.750%, 06/15/14 ²		225		235,688		0.2

				9,496,567		9.6

Total Energy				12,023,230		12.2

FINANCIALS — 12.0%
CAPITAL MARKETS — 0.1%
Oppenheimer Holdings, Inc., Sr Sec’d Nt, 8.750%, 04/15/18		135		131,625		0.1

COMMERCIAL BANKS — 2.3%
Bank of America Corp., VAR, 8.125%, 05/15/18 ¹⁴		665		565,350		0.6
VAR, 8.000%, 01/30/18 ¹⁴		660		561,099		0.6
BankAmerica Capital II, Nt, 8.000%, 12/15/26		30		27,900		0.0	¹²
BankAmerica Institutional Capital B, Private Placement, 7.700%, 12/31/26 ²		250		225,000		0.2
Barclays Bank plc, Private Placement, (United Kingdom), VAR, 7.434%, 12/15/17 ^2,14		600		492,000		0.5
Wachovia Capital Trust III, VAR, 5.570%, 08/01/11 ¹⁴		495		405,900		0.4

				2,277,249		2.3
CONSUMER FINANCE — 1.3%
Ally Financial, Inc., 8.000%, 11/01/31		842		738,855		0.8
Springleaf Finance Corp., 6.900%, 12/15/17		700		504,000		0.5

				1,242,855		1.3

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

DIVERSIFIED FINANCIAL SERVICES — 4.0%
ACE Cash Express, Inc., Private Placement, 11.000%, 02/01/19 ²	$	495	$	439,312		0.4	%
Aircastle Ltd., Sr Nt, (Bermuda), 9.750%, 08/01/18		75		77,250		0.1
CIT Group, Inc., Private Placement, Sec’d Nt, 7.000%, 05/02/17 ²		760		737,200		0.7
CNG Holdings, Inc., Private Placement, 12.250%, 02/15/15 ²		140		145,600		0.1
13.750%, 08/15/15 ²		250		260,625		0.3
Community Choice Financial, Inc., Private Placement, Sr Sec’d Nt, 10.750%, 05/01/19 ²		165		160,050		0.2
Deluxe Corp., Private Placement, 7.000%, 03/15/19 ²		156		150,540		0.2
ILFC E-Capital Trust I, Private Placement, VAR, 4.770%, 12/21/65 ²		950		660,440		0.7
ILFC E-Capital Trust II, Private Placement, VAR, 6.250%, 12/21/65 ²		520		384,800		0.4
International Lease Finance Corp., 8.875%, 09/01/17		300		301,500		0.3
Lender Processing Services, Inc., Co Guar, 8.125%, 07/01/16		110		103,400		0.1
SquareTwo Financial Corp., Sr Sec’d Nt, 11.625%, 04/01/17		417		396,150		0.4
Tops Holding Corp./Tops Markets LLC, 10.125%, 10/15/15		115		115,000		0.1

				3,931,867		4.0
INSURANCE — 3.2%
American International Group, Inc., VAR, 8.175%, 05/15/58		470		414,775		0.4
CNO Financial Group, Inc., Private Placement, Sr Sec’d Nt, 9.000%, 01/15/18 ²		200		207,000		0.2
Hartford Financial Services Group, Inc., Sub Nt, VAR, 8.125%, 06/15/38		100		94,000		0.1
HUB International Holdings, Inc., Private Placement, 10.250%, 06/15/15 ^2,10		450		416,250		0.4
Liberty Mutual Group, Inc., Private Placement, VAR, 10.750%, 06/15/58 ²		1,045		1,243,550		1.3
Liberty Mutual Group, Inc., Private Placement, Sub Nt, Co Guar, 7.800%, 03/15/37 ²		250		218,750		0.2
Stoneheath RE, Sub Nt, (Cayman Islands), VAR, 6.868%, 10/15/11 ¹⁴		250		216,250		0.2
Description	Par (000)		Value		Percent of Net Assets*

INSURANCE — (continued)
USI Holdings Corp., Private Placement, Sr Sub Nt, 9.750%, 05/15/15 ²	$	280	$	252,000		0.3	%
XL Group plc, Sub Nt, (Ireland), VAR, 6.500%, 04/15/17 ¹⁴		110		86,350		0.1

				3,148,925		3.2
REAL ESTATE INVESTMENT TRUSTS (REITs) — 0.9%
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corp., Co Guar, 7.750%, 02/15/19		220		207,350		0.2
CB Richard Ellis Services, Inc., 6.625%, 10/15/20		150		144,000		0.1
CNL Lifestyle Properties, Inc., Sr Nt, Co Guar, 7.250%, 04/15/19		285		245,100		0.3
DuPont Fabros Technology LP, Nt, 8.500%, 12/15/17		105		108,675		0.1
First Industrial LP, Sr Nt, 6.420%, 06/01/14		180		184,032		0.2

				889,157		0.9
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.2%
Kennedy-Wilson, Inc., Private Placement, 8.750%, 04/01/19 ²		160		149,200		0.2

Total Financials				11,770,878		12.0

HEALTH CARE — 6.3%
HEALTH CARE PROVIDERS & SERVICES — 4.0%
Capella Healthcare, Inc., Private Placement, 9.250%, 07/01/17 ²		165		156,750		0.2
CDRT Merger Sub, Inc., Private Placement, Co Guar, 8.125%, 06/01/19 ²		225		208,125		0.2
CHS/Community Health Systems, Inc., Co Guar, 8.875%, 07/15/15		336		330,120		0.3
HCA, Inc., 5.750%, 03/15/14 ¹⁰		195		190,125		0.2
HCA, Inc., Co Guar, 7.500%, 02/15/22		500		461,250		0.5
HCA, Inc., Sr Unsec’d Nt, 8.000%, 10/01/18		180		175,725		0.2
IASIS Healthcare LLC/IASIS Capital Corp., Private Placement, Sr Nt, 8.375%, 05/15/19 ²		1,000		810,000		0.8
inVentiv Health, Inc., Private Placement, Sr Nt, 10.000%, 08/15/18 ²		250		220,000		0.2
Multiplan, Inc., Private Placement, Nt, 9.875%, 09/01/18 ²		450		445,500		0.4

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

HEALTH CARE PROVIDERS & SERVICES — (continued)
OnCure Holdings, Inc., 11.750%, 05/15/17	$	395	$	349,575		0.4	%
Radiation Therapy Services, Inc., 9.875%, 04/15/17		225		191,813		0.2
Tenet Healthcare Corp., 8.875%, 07/01/19 ¹⁰		250		264,375		0.3
Vanguard Health Holding Co. II LLC/Vanguard Holding Co. II Inc, Co Guar, 7.750%, 02/01/19		100		89,125		0.1

				3,892,483		4.0
PHARMACEUTICALS — 2.3%
Catalent Pharma Solutions, Inc., Nt, PIK, 9.500%, 04/15/15		152		139,021		0.2
Celtic Pharma Phinco B.V., (Bermuda), PIK, 17.000%, 06/15/12 ^3,9		2,024		792,053		0.8
Elan Finance plc/Elan Finance Corp., Nt, Co Guar, (Ireland), 8.750%, 10/15/16		500		517,500		0.5
Elan Finance plc/Elan Finance Corp., (Ireland), 8.750%, 10/15/16		500		517,500		0.5
Endo Pharmaceuticals Holdings, Inc., Private Placement, Nt, Co Guar,
7.000%, 07/15/19 ²		75		75,281		0.1
7.250%, 01/15/22 ²		100		100,250		0.1
Giant Funding Corp., Private Placement, 8.250%, 02/01/18 ²		100		100,000		0.1

				2,241,605		2.3

Total Health Care				6,134,088		6.3

INDUSTRIALS — 13.1%
AEROSPACE & DEFENSE — 1.2%
Colt Defense LLC/Colt Finance Corp., Sr Unsec’d Nt, 8.750%, 11/15/17		67		44,387		0.0	¹²
CPI International, Inc., Sr Nt, Co Guar, 8.000%, 02/15/18		250		225,000		0.2
Ducommun, Inc., Private Placement, Sr Nt, 9.750%, 07/15/18 ²		250		250,000		0.3
Huntington Ingalls Industries, Inc., Private Placement,
6.875%, 03/15/18 ²		165		153,450		0.1
7.125%, 03/15/21 ²		90		83,475		0.1
Kratos Defense & Security Solutions, Inc., 10.000%, 06/01/17		370		368,150		0.4
Triumph Group, Inc., 8.625%, 07/15/18		80		85,200		0.1

				1,209,662		1.2
Description	Par (000)		Value		Percent of Net Assets*

AIRLINES — 1.3%
American Airlines Pass Through Trust 2001-01, 7.377%, 05/23/19	$	299	$	197,138		0.2	%
Continental Airlines 2005-ERJ1 Pass Through Trust, 9.798%, 04/01/21 ¹⁰		709		705,689		0.7
UAL 2007-1 Pass Through Trust, Private Placement,
VAR, 2.647%, 07/02/14		100		90,934		0.1
7.336%, 07/02/19		81		72,586		0.1
UAL 2009-2B Pass Through Trust, Private Placement, 12.000%, 01/15/16 ²		171		181,021		0.2

				1,247,368		1.3
BUILDING PRODUCTS — 0.2%
Nortek, Inc., Private Placement, Co Guar, 8.500%, 04/15/21 ²		235		189,175		0.2

COMMERCIAL SERVICES & SUPPLIES — 2.3%
B-Corp. Merger Sub, Inc., Private Placement, Sr Nt, 8.250%, 06/01/19 ²		200		180,000		0.2
Cenveo Corp., Nt, 8.875%, 02/01/18		375		295,312		0.3
Cenveo Corp., Private Placement, 10.500%, 08/15/16 ²		65		52,000		0.0	¹²
Garda World Security Corp., Private Placement, (Canada), 9.750%, 03/15/17 ²		180		183,600		0.2
Harland Clarke Holdings Corp.,
VAR, 6.000%, 05/15/15 ¹⁰		447		295,020		0.3
9.500%, 05/15/15		40		29,600		0.0	¹²
Iron Mountain, Inc., 8.375%, 08/15/21		250		255,000		0.2
Iron Mountain, Inc., Co Guar, 7.750%, 10/01/19		100		99,250		0.1
Liberty Tire Recycling, Private Placement, Nt, 11.000%, 10/01/16 ²		275		280,500		0.3
Mobile Mini, Inc., Sr Nt, Co Guar, 7.875%, 12/01/20		200		192,000		0.2
Quebecor World Capital Escrow Corp., (Canada),
6.125%, 11/15/13 ^1,4		1,415		29,715		0.1
6.500%, 08/01/27 ^1,4		810		17,010		0.0	¹²
9.750%, 01/15/15 ^1,4		585		12,285		0.0	¹²
R.R. Donnelley & Sons Co., Sr Unsec’d Nt,
7.250%, 05/15/18		125		112,969		0.1
7.625%, 06/15/20		200		177,500		0.2

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


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	$	95,000		0.1	%

				2,306,761		2.3
CONSTRUCTION & ENGINEERING — 1.7%
Goodman Networks, Inc., Private Placement, Sr Sec’d Nt, 12.125%, 07/01/18 ²		320		299,200		0.3
Great Lakes Dredge & Dock Corp., Co Guar, 7.375%, 02/01/19		50		46,000		0.1
New Enterprise Stone & Lime Co., Private Placement, Co Guar, 11.000%, 09/01/18 ²		750		594,375		0.6
Production Resource Group, Inc., Private Placement, Co Guar, 8.875%, 05/01/19 ²		125		112,813		0.1
RSC Equipment Rental, Inc./RSC Holdings III LLC, Sr Nt, 9.500%, 12/01/14 ¹⁰		271		269,645		0.3
RSC Equipment Rental, Inc./RSC Holdings III LLC, Sr Nt, Co Guar, 8.250%, 02/01/21		160		138,400		0.1
Tutor Perini Corp., Co Guar, 7.625%, 11/01/18		150		128,250		0.1
United Rentals North America, Inc., 10.875%, 06/15/16		80		86,400		0.1

				1,675,083		1.7
ELECTRICAL EQUIPMENT — 0.5%
Belden, Inc., Sr Sub Nt, Co Guar, 9.250%, 06/15/19		125		135,000		0.1
General Cable Corp., VAR, 2.621%, 04/01/15		250		235,000		0.3
International Wire Group, Inc., Private Placement, 9.750%, 04/15/15 ²		100		98,250		0.1

				468,250		0.5
ENVIRONMENTAL SERVICES — 0.1%
Casella Waste Systems, Inc., Private Placement, Nt, 7.750%, 02/15/19 ²		90		85,050		0.1

INDUSTRIAL CONGLOMERATES — 0.3%
Dynacast International LLC/Dynacast Finance, Inc., Private Placement, Sec’d Nt, 9.250%, 07/15/19 ²		100		90,500		0.1
JB Poindexter & Co., Inc., Co. Guar, 8.750%, 03/15/14 ¹⁰		184		182,160		0.2

				272,660		0.3
Description	Par (000)		Value		Percent of Net Assets*

MACHINERY — 0.9%
Boart Longyear Management Pty Ltd., Private Placement, Co Guar, (Australia), 7.000%, 04/01/21 ²	$	60	$	59,400		0.1	%
Columbus McKinnon Corp., Co Guar, 7.875%, 02/01/19		180		174,600		0.2
CPM Holdings, Inc., Sr Sec’d Nt, 10.625%, 09/01/14		55		58,300		0.0	¹²
Thermadyne Holdings Corp., Sr Sec’d Nt, 9.000%, 12/15/17		525		514,500		0.5
Titan International, Inc., Sr Sec’d Nt, 7.875%, 10/01/17		125		130,000		0.1

				936,800		0.9
MARINE — 2.2%
ACL I Corp., Private Placement, PIK, 10.625%, 02/15/16 ²		317		247,308		0.3
Bluewater Holding BV, Private Placement, Nt, (Netherlands), VAR, 3.250%, 07/17/14 ²		400		296,000		0.3
CMA CGM S.A., Private Placement, Sr Unsec’d Nt, (France), 8.500%, 04/15/17 ²		575		232,875		0.2
Commercial Barge Line Co., Sr Nt, 12.500%, 07/15/17		350		371,875		0.4
General Maritime Corp., Sr Nt, 12.000%, 11/15/17		364		130,130		0.1
Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S., Inc., Sr Sec’d Nt, 8.625%, 11/01/17		81		67,432		0.1
Navios Maritime Holdings, Inc./Navios Maritime Finance U.S., Inc., 8.875%, 11/01/17		377		367,575		0.4
Navios South American Logisitcs, Inc./Navios Logistics Finance U.S., Inc., Private Placement, Co Guar, 9.250%, 04/15/19 ²		125		109,063		0.1
Ultrapetrol Bahamas Ltd., 1st Mtg, (Bahamas), 9.000%, 11/24/14 ¹⁰		310		299,150		0.3

				2,121,408		2.2
ROAD & RAIL — 2.4%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 8.250%, 01/15/19		150		137,250		0.1
9.625%, 03/15/18		240		237,600		0.3
Hertz Corp. (The), Sr Nt, Co Guar, 6.750%, 04/15/19		125		113,438		0.1

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

ROAD & RAIL — (continued)
Kansas City Southern de Mexico S.A. de C.V., Sr Unsec’d Nt, (Mexico), 6.125%, 06/15/21	$	75	$	74,250		0.1	%
6.625%, 12/15/20		113		116,390		0.1
Kansas City Southern Railway, Sr Nt, 8.000%, 06/01/15		156		165,945		0.2
Quality Distribution LLC/QD Capital Corp., Sec’d Nt, 9.875%, 11/01/18		1,100		1,061,500		1.1
RailAmerica, Inc., 9.250%, 07/01/17		400		433,000		0.4

				2,339,373		2.4

Total Industrials				12,851,590		13.1

INFORMATION TECHNOLOGY — 6.1%
COMMUNICATIONS EQUIPMENT — 1.0%
Avaya, Inc., Private Placement, 7.000%, 04/01/19 ²		260		221,000		0.2
Avaya, Inc., Sr Nt, 9.750%, 11/01/15		500		365,000		0.4
Brightstar Corp., Private Placement, 9.500%, 12/01/16 ²		260		265,200		0.2
EH Holding Corp., Private Placement, Sr Unsec’d Nt, 7.625%, 06/15/21 ²		85		81,813		0.1
EH Holding Corp., Private Placement, Sr Sec’d Nt, 6.500%, 06/15/19 ²		88		84,700		0.1

				1,017,713		1.0
COMPUTERS & PERIPHERALS — 0.9%
Seagate HDD Cayman, Sr Nt, (Cayman Islands), 6.875%, 05/01/20		170		156,400		0.2
Seagate HDD Cayman, Private Placement, Co Guar, (Cayman Islands), 7.750%, 12/15/18 ²		450		441,000		0.4
Stratus Technologies Bermuda Ltd./Stratus Technologies, Inc., Sr Sec’d Nt, (Bermuda), 12.000%, 03/29/15		371		324,625		0.3

				922,025		0.9
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.1%
Intcomex, Inc., 13.250%, 12/15/14		218		212,005		0.2
Kemet Corp., 10.500%, 05/01/18		375		393,750		0.4
Sanmina-SCI Corp., Private Placement, Sr Nt, VAR, 3.097%, 06/15/14 ²		200		191,000		0.2
Viasystems, Inc., Private Placement, 12.000%, 01/15/15 ²		225		240,750		0.3

				1,037,505		1.1
Description	Par (000)		Value		Percent of Net Assets*

INTERNET SOFTWARE & SERVICES — 0.2%
Equinix, Inc., Sub Nt, 8.125%, 03/01/18	$	185	$	194,712		0.2	%

IT SERVICES — 1.9%
Compucom Systems, Inc., Private Placement, 12.500%, 10/01/15 ²		225		226,125		0.2
First Data Corp., 9.875%, 09/24/15		19		15,912		0.0	¹²
First Data Corp., Co Guar, PIK, 10.550%, 09/24/15		155		129,038		0.1
First Data Corp., Private Placement, Sr Nt, 8.250%, 01/15/21 ²		80		63,200		0.1
First Data Corp., Private Placement, Sr Nt, 12.625%, 01/15/21 ²		378		279,720		0.3
iGate Corp., Private Placement, Co Guar, 9.000%, 05/01/16 ²		375		348,750		0.3
Sitel LLC/Sitel Finance Corp., Sr Unsec’d Nt, 11.500%, 04/01/18		850		671,500		0.7
Softbrands, Inc./Atlantis Merger Sub, Inc., Private Placement, Sr Nt, 11.500%, 07/15/18 ²		65		57,850		0.1
Stream Global Services, Inc., Sr Nt, 11.250%, 10/01/14		100		102,250		0.1

				1,894,345		1.9
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.0%
Amkor Technology, Inc., 7.375%, 05/01/18		170		164,050		0.2
Freescale Semiconductor, Inc., Private Placement, Nt, 9.250%, 04/15/18 ²		105		107,888		0.1
Freescale Semiconductor, Inc., Sr Nt, Co Guar, 8.050%, 02/01/20		385		348,425		0.4
MEMC Electronic Materials, Inc., Private Placement, 7.750%, 04/01/19 ²		135		115,425		0.1
NXP B.V./NXP Funding LLC, Private Placement, (Netherlands), 9.750%, 08/01/18 ²		100		104,500		0.1
NXP B.V./NXP Funding LLC, Sr Nt, (Netherlands), VAR, 2.999%, 10/15/13		98		94,815		0.1

				935,103		1.0

Total Information Technology				6,001,403		6.1

MATERIALS — 11.0%
CHEMICALS — 2.1%
CF Industries, Inc., 7.125%, 05/01/20		90		102,488		0.1

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

CHEMICALS — (continued)
Chemtura Corp., Sr Nt, Co Guar, 7.875%, 09/01/18	$	150	$	147,000		0.1	%
Lyondell Chemical Co., 11.000%, 05/01/18		967		1,043,968		1.1
Lyondell Chemical Co., Private Placement, 8.000%, 11/01/17 ²		262		282,305		0.3
Nexeo Solutions LLC/Nexeo Solutions Finance Corp., Private Placement, Nt, 8.375%, 03/01/18 ²		35		34,562		0.0	¹²
Omnova Solutions, Inc., Sr Nt, Co Guar, 7.875%, 11/01/18		230		186,300		0.2
PolyOne Corp., 7.375%, 09/15/20		280		281,400		0.3

				2,078,023		2.1
CONSTRUCTION MATERIALS — 0.8%
Cemex S.A.B. de C.V., Private Placement, (Mexico), 9.000%, 01/11/18 ²		500		338,750		0.3
Texas Industries, Inc., 9.250%, 08/15/20		215		167,162		0.2
Vulcan Materials Co., Sr Unsec’d Nt, 7.500%, 06/15/21		315		293,868		0.3

				799,780		0.8
CONTAINERS & PACKAGING — 3.0%
Ardagh Packaging Finance plc, Private Placement, Sr Sub Nt, (Ireland), 9.125%, 10/15/20 ²		200		180,000		0.2
Berry Plastics Corp., 9.500%, 05/15/18		370		314,500		0.3
Berry Plastics Corp., Co Guar, 8.250%, 11/15/15		165		167,888		0.2
Berry Plastics Corp., Sr Sec’d Nt, 9.750%, 01/15/21		300		255,000		0.3
Constar International, Inc., 11.000%, 12/31/17 ^3,9		305		304,766		0.3
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC, Private Placement, Sr Sec’d Nt, 7.875%, 08/15/19 ²		250		241,250		0.2
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC, Private Placement, Sr Unsec’d Nt, 9.875%, 08/15/19 ²		275		242,000		0.3
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu, Private Placement, Nt,
8.250%, 02/15/21 ²		300		237,000		0.2
9.000%, 05/15/18 ²		400		338,000		0.4
9.000%, 04/15/19 ²		125		106,250		0.1
Description	Par (000)		Value		Percent of Net Assets*

CONTAINERS & PACKAGING — (continued)
Sealed Air Corp., Private Placement, Sr Unsec’d Nt,
8.125%, 09/15/19 ²	$	70	$	70,700		0.1	%
8.375%, 09/15/21 ²		70		70,700		0.0	¹²
Viskase Cos., Inc., Private Placement, Sr Nt, 9.875%, 01/15/18 ²		350		353,500		0.4

				2,881,554		3.0
METALS & MINING — 3.0%
APERAM, Private Placement, Sr Unsec’d Nt, (Luxembourg), 7.750%, 04/01/18 ²		300		261,000		0.3
Constellation Enterprises LLC, Private Placement, 10.625%, 02/01/16 ²		275		266,750		0.3
Edgen Murray Corp., Sr Nt, 12.250%, 01/15/15		250		224,063		0.2
FMG Resources August 2006 Pty Ltd., Private Placement, (Australia), 7.000%, 11/01/15 ²		100		93,000		0.1
FMG Resources August 2006 Pty Ltd., Private Placement, Co Guar, (Australia), 6.875%, 02/01/18 ²		395		347,600		0.4
James River Escrow, Inc., Private Placement, 7.875%, 04/01/19 ²		60		50,400		0.1
JMC Steel Group, Private Placement, 8.250%, 03/15/18 ²		100		94,000		0.1
Murray Energy Corp., Private Placement, 10.250%, 10/15/15 ²		255		243,525		0.3
Noranda Aluminum Acquisition Corp., Sr Nt, PIK, 4.417%, 05/15/15		487		438,444		0.4
Novelis, Inc., Co Guar, (Canada), 8.750%, 12/15/20		429		420,420		0.4
Severstal Columbus LLC, 10.250%, 02/15/18		100		102,000		0.1
Taseko Mines Ltd., Co Guar, (Canada), 7.750%, 04/15/19		50		46,500		0.0	¹²
Thompson Creek Metals Co., Inc., Private Placement, Sr Nt, Co Guar, (Canada), 7.375%, 06/01/18 ²		150		135,000		0.1
Wolverine Tube, Inc., Sr Sec’d Nt, 6.000%, 06/28/14 ^3,9		225		225,046		0.2

				2,947,748		3.0
PAPER & FOREST PRODUCTS — 2.1%
AbitibiBowater, Inc., Private Placement, 10.250%, 10/15/18 ²		260		271,700		0.3

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

PAPER & FOREST PRODUCTS — (continued)
Abitibi-Consolidated Co. of Canada, Escrow, (Canada), 6.000%, 06/20/13 ^1,4	$	1,331	$	3,328		0.0	% ¹²
7.500%, 04/01/28 ^1,4		287		717		0.0	¹²
Abitibi-Consolidated Co. of Canada, Sr Nt, Escrow, (Canada), 7.750%, 06/15/11 ^1,4		479		1,198		0.0	¹²
8.375%, 04/01/15 ^1,4		2,485		6,212		0.0	¹²
8.850%, 08/01/30 ^1,4		102		255		0.0	¹²
Appleton Papers, Inc., Private Placement, Sr Sec’d Nt, 10.500%, 06/15/15 ²		250		245,000		0.3
Bowater Canada Finance Corp., Nt, (Canada), 7.950%, 11/15/11 ^1,4		500		105,000		0.1
Longview Fibre Paper & Packaging, Inc., Private Placement, Sr Sec’d Nt, 8.000%, 06/01/16 ²		200		194,000		0.2
NewPage Corp., Sr Nt, 10.000%, 05/01/12 ^1,4		450		51,750		0.1
NewPage Corp., Sr Sec’d Nt, 11.375%, 12/31/14		1,500		1,113,750		1.1
Smurfit-Stone Container Corp., Sr Nt, 8.000%, 03/15/17 ^1,3,4,9		1,229		26,116		0.0	¹²
Smurfit-Stone Container Enterprises, Inc., 8.375%, 07/01/12 ^1,3,4,9		448		9,520		0.0	¹²

				2,028,546		2.1

Total Materials				10,735,651		11.0

TELECOMMUNICATION SERVICES — 8.3%
DIVERSIFIED TELECOMMUNICATION SERVICES — 4.2%
Cincinnati Bell, Inc., 8.750%, 03/15/18		120		106,500		0.1
Clearwire Communications LLC/Clearwire Finance, Inc., Private Placement, 12.000%, 12/01/15 ²		113		95,203		0.1
12.000%, 12/01/15 ²		1,387		1,175,482		1.2
Frontier Communications Corp., Sr Nt, 8.250%, 04/15/17		115		111,550		0.1
8.500%, 04/15/20		115		111,550		0.1
8.750%, 04/15/22		110		109,175		0.1
Global Crossing Ltd., (Bermuda), 12.000%, 09/15/15		35		39,681		0.0	¹²
Level 3 Escrow, Inc., Private Placement, Sr Unsec’d Nt, 8.125%, 07/01/19 ²		600		530,250		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	$	44,438		0.1	%
Level 3 Financing, Inc., Private Placement, Sr Nt, 9.375%, 04/01/19 ²		295		274,350		0.3
PAETEC Holding Corp., Sr Sec’d Nt, 8.875%, 06/30/17		200		210,000		0.2
Qwest Communications International, Inc., Sr Sec’d Nt, 7.125%, 04/01/18		200		196,000		0.2
Qwest Corp., Sr Nt, 7.625%, 06/15/15 ¹⁰		515		551,050		0.6
Windstream Corp., 7.875%, 11/01/17		320		324,000		0.3
8.125%, 09/01/18		250		251,875		0.3

				4,131,104		4.2
WIRELESS TELECOMMUNICATION SERVICES — 4.1%
Cricket Communications, Inc., 7.750%, 05/15/16		180		180,675		0.2
7.750%, 10/15/20		375		326,250		0.3
MetroPCS Wireless, Inc., 7.875%, 09/01/18		145		140,650		0.1
MetroPCS Wireless, Inc., Sr Nt, Co Guar, 6.625%, 11/15/20		200		176,000		0.2
Nextel Communications, Inc., 7.375%, 08/01/15 ¹⁰		1,025		971,187		1.0
NII Capital Corp., Sr Nt, 8.875%, 12/15/19		315		328,387		0.3
Sprint Nextel Corp., Nt, 6.000%, 12/01/16 ¹⁰		1,400		1,204,000		1.2
VimpelCom Holdings B.V., Nt, Co Guar, (Netherlands), 7.504%, 03/01/22 ²		200		161,000		0.2
VimpelCom Holdings B.V., Private Placement, Co Guar, (Netherlands), 6.255%, 03/01/17 ²		200		172,000		0.2
Wind Acquisition Finance S.A., Private Placement, (Luxembourg), 7.250%, 02/15/18 ²		200		170,750		0.2
Wind Acquisition Holdings Finance S.A., Private Placement, Sr Sec’d Nt, (Luxembourg), PIK, 12.250%, 07/15/17 ²		247		192,956		0.2

				4,023,855		4.1

Total Telecommunication Services				8,154,959		8.3

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


Description	Par (000)			Value		Percent of Net Assets*

UTILITIES — 4.5%
ELECTRIC UTILITIES — 0.2%
Dolphin Subsidiary II, Inc.,
Private Placement, Sr Unsec’d Nt,
6.500%, 10/15/16 ²	$	110		$	108,625		0.1	%
7.250%, 10/15/21 ²		100			97,000		0.1

					205,625		0.2
GAS UTILITIES — 0.1%
Genesis Energy LP/Genesis Energy Finance Corp., Private Placement, 7.875%, 12/15/18 ²		160			152,000		0.1

INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 3.2%
Calpine Construction Finance Co. LP and CCFC Finance Corp., Private Placement, 8.000%, 06/01/16 ²		200			205,000		0.2
Dynegy Holdings, LLC, Sr Nt, 7.750%, 06/01/19		750			453,750		0.5
Dynegy Holdings, LLC, Sr Unsec’d Nt, 7.125%, 05/15/18		500			292,500		0.3
Dynegy Roseton/Danskammer Pass Through Trust, Sr Unsec’d Nt, 7.670%, 11/08/16		1,000			550,000		0.5
Edison Mission Energy, 7.200%, 05/15/19		500			285,000		0.3
Edison Mission Energy, Sr Unsec’d Nt, 7.000%, 05/15/17		1,000			595,000		0.6
First Wind Capital LLC, Private Placement, Sr Sec’d Nt, 10.250%, 06/01/18 ²		70			66,500		0.1
GenOn Energy, Inc., Sr Unsec’d Nt, 9.875%, 10/15/20		290			271,150		0.3
Homer City Funding LLC, 8.137%, 10/01/19		99			83,328		0.1
Midwest Generation LLC, 8.560%, 01/02/16		198			194,747		0.2
Texas Competitive Electric Holdings Co. LLC, Sr Nt, 10.250%, 11/01/15		350			131,250		0.1

					3,128,225		3.2
MULTI-UTILITIES — 1.0%
Energy Future Intermediate Holding Co. LLC/EFIH Finance, Inc., 10.000%, 12/01/20		980			955,500		1.0

Total Utilities					4,441,350		4.5

Total Corporate Bonds
(cost $118,201,409)					108,490,083		110.5

Description	Par (000)			Value		Percent of Net Assets*

LOAN PARTICIPATIONS & ASSIGNMENTS — 21.0%
CONSUMER DISCRETIONARY — 7.6%
AUTOMOBILES — 0.6%
Chrysler, Term Loan B, VAR, 6.000%, 05/24/17	$	665		$	578,078		0.6	%

DIVERSIFIED CONSUMER SERVICES — 0.1%
Tishman Speyer Office, Term Loan, VAR, 8.000%, 05/20/12		140			136,150		0.1

GAMING — 1.6%
Boyd Gaming Corp., Term Loan, VAR, 3.739%, 12/17/15		234			217,069		0.2
Caesars Entertainment Operating Co., Inc., Term B-2 Loan,
VAR, 3.235%, 01/28/15		352			292,032		0.3
VAR, 3.253%, 01/28/15		654			543,483		0.6
CCM Merger, Inc., Term Loan, VAR, 7.000%, 03/01/17		385			373,250		0.4
Golden Nugget, Inc., Additional Term Advance,
VAR, 3.240%, 06/30/14		12			9,957		0.0	¹²
VAR, 3.240%, 06/30/14		3			2,212		0.0	¹²
VAR, 3.240%, 06/30/14		3			2,467		0.0	¹²
Golden Nugget, Inc., Term Advance,
VAR, 3.240%, 06/30/14		17			13,492		0.0	¹²
VAR, 3.240%, 06/30/14		15			12,218		0.0	¹²
Isle of Capri Casinos, Inc., Term Loan B,
VAR, 4.750%, 11/01/13		100			97,235		0.1

					1,563,415		1.6
HOTELS, RESTAURANTS & LEISURE — 0.6%
Outback Steakhouse, Inc., Prefunded RC Commitment,
VAR, 0.163%, 06/14/13		5			4,636		0.0	¹²
VAR, 2.688%, 06/14/13		—	¹¹		349		0.0	¹²
Outback Steakhouse, Inc., Term Loan B, VAR, 2.563%, 06/14/14		387			359,312		0.4
Rock Ohio Caesars LLC, Term Loan, VAR, 8.500%, 08/15/17		200			196,750		0.2

					561,047		0.6
MEDIA — 3.4%
Cengage Learning Acquisitions, Term Loan, VAR, 2.490%, 07/03/14		361			281,398		0.3
Clear Channel Communications, Inc., Term Loan B, VAR, 3.889%, 01/29/16 ^{^}		672			468,582		0.5

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


Description	Par (000)		Value		Percent of Net Assets*

MEDIA — (continued)
Cumulus Radio, Term Loan, VAR, 09/16/18 ^{^}	$	90	$	84,628		0.1	%
Entercom Radio LLC, Term Loan A,
VAR, 1.362%, 06/30/12		191		182,064		0.2
VAR, 3.375%, 06/30/12		51		48,809		0.0	¹²
High Plains Broadcasting Operating Co. LLC, Term Loan, VAR, 9.000%, 09/14/16		189		185,629		0.2
Hubbard Radio LLC, 1st Lien Term Loan B, VAR, 5.250%, 04/28/17		100		95,760		0.1
Hubbard Radio LLC, 2nd Lien Term Loan C, VAR, 8.750%, 04/30/18		100		97,375		0.1
Media General, Inc., Term Loan,
VAR, 4.734%, 03/29/13		13		10,131		0.0	¹²
VAR, 4.819%, 03/29/13		42		34,262		0.0	¹²
Newport Television LLC, Term Loan, VAR, 9.000%, 09/14/16		694		680,862		0.7
Newsday, Fixed Rate Term Loan, VAR, 10.500%, 08/01/13		250		256,562		0.3
R.H. Donnelley, Inc., Exit Term Loan
VAR, 9.000%, 10/24/14		177		79,263		0.1
VAR, 9.000%, 10/24/14		183		81,765		0.1
VAR, 9.000%, 10/24/14		41		18,463		0.0	¹²
Radio One, 1st Lien Term Loan B, VAR, 7.500%, 03/31/16		249		238,002		0.2
Univision Communications, Inc., Initial Term Loan, VAR, 2.239%, 09/29/14		361		327,808		0.3
Vertis, Inc., 1st Lien Term Loan, VAR, 11.750%, 12/21/15		277		195,743		0.2

				3,367,106		3.4
SPECIALTY RETAIL — 1.1%
Academy Sports & Outdoors, 1st Lien Term Loan, VAR, 6.000%, 08/03/18		250		238,645		0.2
Claire’s Stores, Term Loan B,
VAR, 2.989%, 05/29/14		676		567,854		0.6
VAR, 3.003%, 05/29/14		142		119,008		0.1
J. Crew, 1st Lien Term Loan, VAR, 4.750%, 03/07/18		224		198,964		0.2

				1,124,471		1.1
TEXTILES, APPAREL & LUXURY GOODS — 0.2%
BCBG Max Azaria, 1st Lien Term Loan, VAR, 9.870%, 06/09/15		200		185,666		0.2

Total Consumer Discretionary				7,515,933		7.6

Description	Par (000)		Value		Percent of Net Assets*

CONSUMER STAPLES — 0.9%
FOOD & STAPLES RETAILING — 0.4%
Rite Aid Corp., 1st Lien Term Loan 5, VAR, 4.500%, 03/03/18	$	486	$	447,689		0.4	%

PERSONAL PRODUCTS — 0.5%
Targus, 1st Lien Term Loan, VAR, 11.000%, 05/24/16		499		477,967		0.5

Total Consumer Staples				925,656		0.9

ENERGY — 0.2%
OIL, GAS & CONSUMABLE FUELS — 0.2%
Big West Oil, Term Loan B, VAR, 7.000%, 03/31/16		95		94,026		0.1
Western Refinancing, Inc., Term Loan B, VAR, 7.500%, 03/15/17		100		98,576		0.1

Total Energy				192,602		0.2

FINANCIALS — 2.0%
DIVERSIFIED FINANCIAL SERVICES — 1.7%
Capmark Financial Group, U.S. Term Loan, VAR, 03/23/11 ^1,4		2,285		1,168,546		1.2
Capmark Financial Group, Unsecured Bridge Loan, VAR, 03/23/11 ^1,4		175		90,563		0.1
Clarke American Corp., Term Loan B, VAR, 2.739%, 06/30/14		101		85,020		0.1
VAR, 2.739%, 06/30/14		97		81,750		0.1
VAR, 2.739%, 06/30/14 ^{^}		151		126,830		0.1
VAR, 2.739%, 06/30/14		71		59,561		0.1
VAR, 2.739%, 06/30/14		59		49,400		0.0	¹²

				1,661,670		1.7
REAL ESTATE INVESTMENT TRUSTS (REITS) — 0.3%
I-Star, Term Loan A-1, VAR, 5.000%, 06/28/13		197		189,561		0.2
VAR, 5.000%, 06/28/13		143		137,457		0.1

				327,018		0.3

Total Financials				1,988,688		2.0

HEALTH CARE — 0.3%
HEALTH CARE PROVIDERS & SERVICES — 0.1%
Inventive Health, Consolidated Term Loan, VAR, 6.500%, 08/04/16		99		94,571		0.1

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


Description	Par (000)			Value		Percent of Net Assets*

PHARMACEUTICALS — 0.2%
Axcan Intermediate Holdings, Inc., Term Loan, VAR, 5.500%, 02/10/17	$	103		$	91,025		0.1	%
VAR, 5.500%, 02/10/17		11			9,815		0.0	¹²
Capsugel Holdings, Inc., Term Loan, VAR, 5.250%, 08/01/18		75			73,389		0.1
VAR, 08/01/18 ^{^}		—	¹¹		369		0.0	¹²

					174,598		0.2

Total Health Care					269,169		0.3

INDUSTRIALS — 3.1%
AIRLINES — 0.5%
Delta Air Lines, Inc., New Term Loan, VAR, 4.250%, 03/07/16		498			454,590		0.5

BUILDING PRODUCTS — 0.8%
Jacuzzi Brands, Inc., 1st Lien Synthetic Credit Facility, VAR, 0.269%, 02/07/14		81			57,696		0.1
Jacuzzi Brands, Inc., 1st Lien Term Loan B, VAR, 2.503%, 02/07/14		886			630,030		0.6
Jacuzzi Luxco S.A.R.L., New Term Loan, VAR, 6.246%, 11/15/13 ^{3,9,^}		126			125,535		0.1

					813,261		0.8
COMMERCIAL SERVICES & SUPPLIES — 0.5%
Cenveo Corp., Term B Loan, VAR, 6.250%, 12/21/16		199			192,132		0.2
SCH Group, 1st Lien Term Loan, VAR, 6.625%, 04/28/17		125			110,193		0.1
SCH Group, 2nd Lien Term Loan, VAR, 10.500%, 04/30/18		225			198,423		0.2

					500,748		0.5
INDUSTRIAL CONGLOMERATES — 1.1%
BOC Edwards, Extended Term Loan, VAR, 5.500%, 05/31/16		1,178			1,085,148		1.1

PAPER & FOREST PRODUCTS — 0.2%
Xerium Technologies, Inc., Initial U.S. Term Loan, VAR, 5.500%, 05/26/17		191			184,784		0.2

Total Industrials					3,038,531		3.1

INFORMATION TECHNOLOGY — 2.7%
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.1%
Sensus USA, Inc., 1st Lien Term Loan, VAR, 4.750%, 05/09/17		99			95,173		0.1
Description	Par (000)			Value		Percent of Net Assets*

ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — (continued)
VAR, 5.750%, 05/09/17	$	—	¹¹	$	437		0.0	% ¹²
Sensus USA, Inc., 2nd Lien Term Loan, VAR, 8.500%, 05/09/18		50			48,094		0.0	¹²

					143,704		0.1
IT SERVICES — 2.2%
Compucom Systems, Inc., Term Loan, VAR, 3.740%, 08/25/14 ^3,9		767			698,296		0.7
First Data Corp., Initial Tranche B-1 Term Loan, VAR, 2.985%, 09/24/14		350			303,261		0.3
First Data Corp., Initial Tranche B-3 Term Loan, VAR, 2.985%, 09/24/14		1,313			1,138,178		1.2

					2,139,735		2.2
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.4%
Freescale Semiconductor, Inc., Extended Maturity Term Loan, VAR, 4.472%, 12/01/16		387			353,908		0.4

Total Information Technology					2,637,347		2.7

MATERIALS — 2.1%
CHEMICALS —1.7%
AZ Chem US, Inc. (Arizona Chemical), Term Loan, VAR, 4.750%, 11/21/16		98			96,188		0.1
Cristal Inorganic Chemicals (Millenium), 2nd Lien Term Loan, VAR, 6.119%, 11/15/14		500			486,665		0.5
Nexeo Solutions, Term Loan, VAR, 5.000%, 09/08/17		62			57,385		0.1
VAR, 5.000%, 09/08/17		38			35,399		0.0	¹²
OM Group, Term Loan B, VAR, 5.750%, 08/02/17		115			113,922		0.1
Rentech Energy Midwest Corp., Term Loan, VAR, 10.000%, 06/10/16		430			421,400		0.4
Styron, 1st Lien Term Loan, VAR, 6.000%, 08/02/17 ^{^}		323			290,208		0.3
Univar, Inc., Term Loan B, VAR, 5.000%, 06/30/17		164			153,241		0.2

					1,654,408		1.7
CONTAINERS & PACKAGING — 0.3%
Reynolds Group Holdings, Term Loan C, VAR, 6.500%, 08/09/18		140			135,645		0.2

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


Description	Par (000)			Value		Percent of Net Assets*

CONTAINERS & PACKAGING — (continued)
Reynolds Group Holdings, U.S. Term Loan, VAR, 6.500%, 02/09/18	$	98		$	94,566		0.1	%
VAR, 6.500%, 02/09/18		27			25,908		0.0	¹²

					256,119		0.3
METALS & MINING — 0.1%
American Rock Salt, 1st Lien Term Loan, VAR, 5.500%, 04/25/17		125			118,688		0.1

Total Materials					2,029,215		2.1

TELECOMMUNICATION SERVICES — 0.5%
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.5%
Level 3 Communications, Tranche A Term Loan, VAR, 2.492%, 03/13/14		71			66,500		0.0	¹²
VAR, 2.496%, 03/13/14		179			166,250		0.2
Level 3 Communications, Tranche B Term Loan, VAR, 11.500%, 03/13/14		250			260,000		0.3

Total Telecommunication Services					492,750		0.5

UTILITIES — 1.6%
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 1.6%
Dynegy Midwest Generation, Inc., Term Loan, VAR, 9.250%, 08/05/16		75			72,643		0.1
Dynegy Power LLC, Term Loan, VAR, 9.250%, 08/05/16		125			122,674		0.1
Texas Competitive Electric Holdings Co. LLC, Extended Term Loan, VAR, 4.726%, 10/10/17		330			219,328		0.2
VAR, 4.772%, 10/10/17		350			233,018		0.3
Texas Competitive Electric Holdings Co. LLC, Extended-Term Loan, VAR, 4.772%, 10/10/17		—	¹¹		268		0.0	¹²
Texas Competitive Electric Holdings Co. LLC, Non-Extended Term Loan, VAR, 3.726%, 10/10/14		679			477,662		0.5
VAR, 3.772%, 10/10/14		1			584		0.0	¹²
TPF Generation Holdings LLC, 2nd Lien Term Loan, VAR, 4.619%, 12/15/14		500			448,125		0.4

Total Utilities					1,574,302		1.6

Total Loan Participations & Assignments
(cost $21,870,761)					20,664,193		21.0

Description	Shares/Par (000)			Value		Percent of Net Assets*

ASSET-BACKED SECURITIES — 1.5%
Countrywide Asset-Backed Certificates, Series 2004-13, Class MV8, VAR, 1.935%, 01/25/35 ^3,9	$	115		$	5,806		0.0	% ¹²
Long Beach Mortgage Loan Trust, Series 2004-5, Class M6, VAR, 2.735%, 09/25/34 ^3,9		50			9,044		0.0	¹²
Unipac IX LLC, 13.000%, 04/11/13 ^3,9		1,500			1,482,446		1.5

Total Asset-Backed Securities
(cost $1,641,701)					1,497,296		1.5

Total Fixed Income Investments
(cost $141,759,871)					130,691,650		133.1

PREFERRED STOCKS — 3.6%
CONSUMER DISCRETIONARY — 1.4%
AUTO COMPONENTS — 0.0%
Glasstech, Inc., Pfd, Series C, ^1,3,9		—	¹¹		—		0.0

AUTOMOBILES — 0.2%
General Motors Co., Series B, 4.750%, 12/01/13		7			245,560		0.2

DIVERSIFIED CONSUMER SERVICES — 0.7%
Carraige Services Capital Trust, Pfd, 7.000%, 06/01/29		16			711,000		0.7

HOUSEHOLD DURABLES — 0.3%
M/I Homes, Inc., Pfd, Series A, 9.750%, 03/15/12 ¹		21			290,535		0.3

MEDIA — 0.2%
Spanish Broadcasting System, Inc., Pfd ^1,3,9		481			2,310		0.0	¹²
Spanish Broadcasting System, Inc., Pfd, Series B, PIK, 10.750%, 08/01/11 ^3,9,14		—	¹¹		145,440		0.2

					147,750		0.2

Total Consumer Discretionary					1,394,845		1.4

CONSUMER STAPLES — 0.0%
FOOD PRODUCTS — 0.0%
Eurofresh, Inc., Pfd, ADR ^1,3,9		—	¹¹		—		0.0

FINANCIALS — 2.1%
COMMERCIAL BANKS — 1.6%
CoBank ACB, Pfd, Series D, 11.000%, 10/01/14 ¹⁴		30			1,593,750		1.6

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


Description	Shares (000)			Value		Percent of Net Assets*

CONSUMER FINANCE — 0.5%
Ally Financial, Inc., 7.000%, 12/31/11 ^2,14		1		$	409,198		0.4	%
GMAC Capital Trust I, Series 2, VAR, 8.125%, 02/15/40		4			65,700		0.1

					474,898		0.5

Total Financials					2,068,648		2.1

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		—	¹¹		90,682		0.1

Total Preferred Stocks
(cost $4,689,223)					3,554,175		3.6

COMMON STOCKS — 3.4%
CONSUMER DISCRETIONARY — 1.0%
AUTO COMPONENTS — 0.0%
Glasstech, Inc., Class C ^1,3,9		—	¹¹		—		0.0

AUTOMOBILES — 0.3%
General Motors Co. ¹		15			295,617		0.3

BROADCASTING & CABLE TV — 0.0% ¹²
Adelphia Recovery Trust ^1,3,9		157			2		0.0	¹²
Adelphia Recovery Trust		1,297			25,937		0.0	¹²

					25,939		0.0	¹²
LEISURE EQUIPMENT & PRODUCTS — 0.3%
True Temper Holdings, Inc. ADR ^1,3,9		4			322,470		0.3

TEXTILES, APPAREL & LUXURY GOODS — 0.4%
Broder Brothers Co. ^1,3,9		38			375,530		0.4
WestPoint International, Inc. ^1,3,9		28			—		0.0

					375,530		0.4

Total Consumer Discretionary					1,019,556		1.0

CONSUMER STAPLES — 0.0%
FOOD PRODUCTS — 0.0%
Eurofresh, Inc., ADR ^1,3,9		106			—		0.0

FINANCIALS — 0.0% ¹²
DIVERSIFIED FINANCIAL SERVICES — 0.0% ¹²
Leucadia National Corp.		—	¹¹		9,889		0.0	¹²

Description	Shares (000)			Value		Percent of Net Assets*

INDUSTRIALS — 0.1%
BUILDING PRODUCTS — 0.0% ¹²
Jupiter Holding I Corp. ^1,3,9		8		$	40,845		0.0	% ¹²

COMMERCIAL SERVICES & SUPPLIES — 0.1%
Quad/Graphics, Inc.		3			57,643		0.1

Total Industrials					98,488		0.1

INFORMATION TECHNOLOGY — 0.7%
COMPUTERS & PERIPHERALS — 0.0%
Stratus Technologies, Inc., ADR ^1,3,9		8			—		0.0

IT SERVICES — 0.0% ¹²
Unisys Corp. ¹		3			50,427		0.0	¹²

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.7%
Magnachip Semiconductor Corp., (Luxembourg) ¹		99			666,221		0.7

Total Information Technology					716,648		0.7

MATERIALS — 1.2%
CHEMICALS — 0.3%
LyondellBasell Industries N.V., (Netherlands), Class A		10			242,761		0.3

CONSTRUCTION MATERIALS — 0.0% ¹²
U.S. Concrete, Inc. ¹		10			41,788		0.0	¹²

CONTAINERS & PACKAGING — 0.0% ¹²
Constar International, Inc., ADR ^1,3,9		4			1,199		0.0	¹²

METALS & MINING — 0.2%
Lexington Coal Co. ^1,3,9		25			7,973		0.0	¹²
Wolverine Tube, Inc., ADR ^1,3,9		8			183,546		0.2

					191,519		0.2
PAPER & FOREST PRODUCTS — 0.7%
AbitibiBowater, Inc., (Canada) ¹		43			647,293		0.7

Total Materials					1,124,560		1.2

TELECOMMUNICATION SERVICES — 0.4%
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.4%
AboveNet, Inc.		7			358,691		0.4
XO Holdings, Inc. ^1,3,9		1			—		0.0

					358,691		0.4
WIRELESS TELECOMMUNICATION SERVICES — 0.0% ¹²
USA Mobility, Inc.		—	¹¹		383		0.0	¹²

Total Telecommunication Services					359,074		0.4

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


Description	Shares (000)		Value			Percent of Net Assets*

UTILITIES — 0.0% ¹²
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.0% ¹²
GenOn Energy, Inc. ¹		3	$	7,359			0.0	¹² %

Total Common Stocks
(cost $6,941,149)				3,335,574			3.4


	Number of Warrants
WARRANTS — 0.3%
CONSUMER DISCRETIONARY — 0.3%
AUTOMOBILES — 0.3%
General Motors Co., expiring 07/10/16 ¹		13		154,963			0.2
General Motors Co., expiring 07/10/19 ¹		13		105,572			0.1

Total Consumer Discretionary				260,535			0.3

Total Warrants
(cost $486,355)				260,535			0.3

Total Equity Investments
(cost $12,116,727)				7,150,284			7.3


	Shares (000)
SHORT-TERM INVESTMENT — 1.8%
INVESTMENT COMPANY — 1.8%
JPMorgan Prime Money Market Fund, Institutional Class Shares, 0.070%, ^5,13
(cost $1,791,040)		1,791		1,791,040			1.8

TOTAL INVESTMENTS
(cost $155,667,638)				139,632,974			142.2

Preferred Stock and Liabilities in Excess of Other Assets				(41,404,417	)		(42.2	)

Net Assets Applicable to Common Stockholders			$	98,228,557			100.0

ADR

American Depositary Receipt

Company

Guar

Guaranteed

Mtg

Mortgage

Note

Pfd

Preferred

PIK

Payment in-kind

Sec’d

Secured

Senior

Sub

Subordinate

Unsec’d

Unsecured

VAR

Variable Rate Security. The interest rate shown is the rate in effect as of September 30, 2011.

Applicable to common stockholders.

Non-income producing security.

Security is exempt from registration under Rule 144A of the Securities Act of 1933. Unless otherwise indicated, this security has been determined to be liquid under procedures established by the Board of Directors and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities amounted to $40,727,800 and 41.5% of net assets applicable to common stockholders.

Fair valued security. These securities amounted to $5,248,338 and 5.3% of net assets applicable to common stockholders.

⁴

Security in default.

⁵

Investment in affiliate. Money market fund registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc.

⁹

Security deemed to be illiquid. These securities amounted to $5,248,338 and 5.3% 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, delayed delivery securities and unfunded commitments.

¹¹

Amount rounds to less than one thousand (par or shares).

¹²

Amount rounds to less than 0.1%.

¹³

The rate shown is the current yield as of September 30, 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 September 30, 2011.

^{^}

All or a portion of the security is unsettled as of September 30, 2011. Unless otherwise indicated, the coupon rate is undetermined. The coupon rate shown may not be accrued for the entire position.

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)

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

•

Level 1 — quoted prices in active markets for identical securities

•

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

•

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

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

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


	Level 1 Quoted prices		Level 2 Other significant observable inputs		Level 3 Significant unobservable inputs			Total
Investments in Securities
Common Stocks
Consumer Discretionary	$	321,554	$	—	$	698,002		$	1,019,556
Consumer Staples		—		—		—	^(a)		—	^(a)
Financials		9,889		—		—			9,889
Industrials		57,643		—		40,845			98,488
Information Technology		716,648		—		—			716,648
Materials		931,842		—		192,718			1,124,560
Telecommunication Services		359,074		—		—			359,074
Utilities		7,359		—		—			7,359

Total Common Stocks		2,404,009		—		931,565			3,335,574

Preferred Stocks
Consumer Discretionary		—		1,247,095		147,750			1,394,845
Consumer Staples		—		—		—	^(a)		—	^(a)
Financials		—		2,068,648		—			2,068,648
Information Technology		—		—		—	^(a)		—	^(a)
Materials		—		—		90,682			90,682

Total Preferred Stocks		—		3,315,743		238,432			3,554,175

Debt Securities
Asset-Backed Securities		—		—		1,497,296			1,497,296
Convertible Bond		—		40,078		—			40,078
Corporate Bonds
Consumer Discretionary		—		31,600,552		—			31,600,552
Consumer Staples		—		4,376,669		399,713			4,776,382
Energy		—		12,023,230		—			12,023,230
Financials		—		11,770,878		—			11,770,878
Health Care		—		5,342,035		792,053			6,134,088
Industrials		—		12,851,590		—			12,851,590
Information Technology		—		6,001,403		—			6,001,403
Materials		—		10,170,203		565,448			10,735,651

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

Schedule of Portfolio Investments (continued)

As of September 30, 2011 (Unaudited)


	Level 1 Quoted prices		Level 2 Other significant observable inputs		Level 3 Significant unobservable inputs		Total
Telecommunication Services	$	—	$	8,154,959	$	—	$	8,154,959
Utilities		—		4,441,350		—		4,441,350

Total Corporate Bonds		—		106,732,869		1,757,214		108,490,083

Total Debt Securities		—		106,772,947		3,254,510		110,027,457

Loan Participations & Assignments
Consumer Discretionary		—		7,515,933		—		7,515,933
Consumer Staples		—		925,656		—		925,656
Energy		—		192,602		—		192,602
Financials		—		1,988,688		—		1,988,688
Health Care		—		269,169		—		269,169
Industrials		—		2,912,996		125,535		3,038,531
Information Technology		—		1,939,051		698,296		2,637,347
Materials		—		2,029,215		—		2,029,215
Telecommunication Services		—		492,750		—		492,750
Utilities		—		1,574,302		—		1,574,302

Total Loan Participations & Assignments		—		19,840,362		823,831		20,664,193

Warrants
Consumer Discretionary		—		260,535		—		260,535
Short-Term Investment
Investment Company		1,791,040		—		—		1,791,040

Total Investments in Securities	$	4,195,049	$	130,189,587	$	5,248,338	$	139,632,974

^(a)

Security has a zero value.

There were no transfers between Levels 1 and 2 during the period ended September 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 9/30/11
Investments in Securities
Asset-Backed Securities	$	1,488,539	$	—	$	6,804		$	7,276	$	—	$	(5,323	)	$	—	$	—	$	1,497,296
Common Stocks — Consumer Discretionary		343,970		—		354,032			—		—		—			—		—		698,002
Common Stocks — Consumer Staples		219,182		—		(219,182	)		—		—		—			—		—		—	^(a)
Common Stocks — Industrials		187,887		—		(147,042	)		—		—		—			—		—		40,845
Common Stocks — Information Technology		1,030,974		—		521,746			—		1,552,720		(3,105,440	)		—		—		—	^(a)
Common Stocks — Materials		27,083		—		(82,350	)		—		247,985		—			—		—		192,718

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

Schedule of Portfolio Investments (concluded)

As of September 30, 2011 (Unaudited)


	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 9/30/11
Common Stocks — Telecommunication Services	$	—		$	—		$	—		$	—		$	—	^(a)	$	—		$	—	$	—		$	—	^(a)
Corporate Bonds — Consumer Discretionary		424,142			—			—			—			—			—			—		(424,142	)		—
Corporate Bonds — Consumer Staples		406,725			—			(54,505	)		—			47,493			—			—		—			399,713
Corporate Bonds — Financials		880,000			19,756			134,460			(46	)		—			(1,034,170	)		—		—			—
Corporate Bonds — Health Care		932,291			—			(298,798	)		(809	)		159,369			—			—		—			792,053
Corporate Bonds — Industrials		465,443			3,862			(30,092	)		261			2,030			(330,254	)		—		(111,250	)		—
Corporate Bonds — Information Technology		418,093			—			4,907			—			—			(423,000	)		—		—			—
Corporate Bonds — Materials		84,204			—			(48,568	)		—			529,812			—			—		—			565,448
Loan Participations & Assignments — Financials		817,789			(143,471	)		138,689			—			—			(813,007	)		—		—			—
Loan Participations & Assignments — Industrials		123,718			—			550			—			1,267			—			—		—			125,535
Loan Participations & Assignments — Information Technology		857,780			—			(41,993	)		3,517			—			(121,008	)		—		—			698,296
Loan Participations & Assignments — Materials		493,750			—			—			—			—			—			—		(493,750	)		—
Preferred Stocks — Consumer Discretionary		206,234			—			(58,484	)		—			—			—			—		—			147,750
Preferred Stocks — Consumer Staples		147,688			—			(162,371	)		—			14,683			—			—		—			—	^(a)
Preferred Stocks — Financials		1,622,814			—			—			—			—			—			—		(1,622,814	)		—
Preferred Stocks — Information Technology		—	^(a)		—			—			—			—			—			—		—			—	^(a)
Preferred Stocks — Materials		—			—			1			—			90,681			—			—		—			90,682

Total	$	11,178,306		$	(119,853	)	$	17,804		$	10,199		$	2,646,040		$	(5,832,202	)	$	—	$	(2,651,956	)	$	5,248,338

^(a)

Security has a zero value.

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

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

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

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

The change in unrealized appreciation (depreciation) attributable to securities owned at September 30, 2011, which were valued using significant unobservable inputs (Level 3) amounted to $(751,906).