N-Q 1 dnq.htm THIRD QUARTER REPORT Third Quarter Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-5639

 

 

Pacholder High Yield Fund, Inc

(Exact name of registrant as specified in charter)

 

 

8044 Montgomery Road, Ste. 555, Cincinnati, OH 45236

(Address of principal executive offices) (Zip code)

 

William J. Morgan

8044 Montgomery Road, Ste. 555

Cincinnati, OH 45236

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: 513-985-3200

 

Date of fiscal year end: December 31, 2004

 

Date of reporting period: September 30, 2004

 

Item 1. Schedule of Investments.

 

PACHOLDER HIGH YIELD FUND, INC.

Statement of Net Assets Applicable to Common Stockholders

September 30, 2004 (Unaudited)

 

Description   Par
(000)		   Value   Percent
of Net
Assets*		  

CORPORATE DEBT SECURITIES — 149.0%

          

AEROSPACE — 4.6%

              

American Airlines, Inc., Pass Thru Cert, 9.71%, 1/2/07

   $       530   $       478,848   0.4 %

American Airlines, Inc., Pass Thru Cert, 7.8%, 10/1/06

   1,000   832,326   0.7  

Atlantic Coast Airlines, Tranche C Pass
Thru Cert, 8.75%, 1/1/072

   579   465,536   0.4  

Continental Airlines, Inc., Pass Thru Cert, 7.568%, 12/1/06

   100   73,270   0.1  

Continental Airlines, Inc., Pass Thru Cert, 9.558%, 9/1/19

   497   494,571   0.4  

Continental Airlines, Inc., Bank Debt, 2.9375%, 12/31/06

   455   381,818   0.3  

Continental Airlines, Inc., Ser 01-1 Pass thru Cert, 7.033%, 6/15/11

   706   545,566   0.5  

Delta Airlines, Nt, 8.3%, 12/15/29

   380   91,200   0.1  

Delta Airlines, Pass Thru Cert,
7.299%, 9/18/06

   850   354,075   0.3  

Northwest Airlines Corp., Pass Thru Cert, 8.304%, 9/1/10

   688   534,781   0.5  

Northwest Airlines Corp., Pass Thru Cert, 7.626%, 4/1/10

   1,407   1,088,075   0.9  
       
 
        5,340,066   4.6  

CHEMICALS — 18.5%

              

American Rock Salt Co., Sec’d Nt,
9.5%, 3/15/142

   400   416,000   0.4  

BCP Caylux Holdings, Sr Sub Nt,
9.625%, 6/15/142

   1,000   1,085,000   0.9  

Braskem, Nt, 11.75%, 1/22/142

   350   378,000   0.3  

Crompton Corp., Sr Nt,
9.875%, 8/1/122

   750   791,250   0.7  

Crompton Corp., FRN, Sr Nt,
7.67%, 8/1/102

   300   313,500   0.3  

Crystal US Holdings/US Sub, Sr Disc Nt, 0/10.5%, 10/1/142

   1,000   602,500   0.5  

Equistar Chemicals, Sr Nt,
10.625%, 5/1/11

   1,000   1,145,000   1.0  

HMP Equity Holdings Corp., Units,
0%, 5/15/08

   1,000   635,000   0.6  

Huntsman ICI Chemicals, Sr Sub Nt, 10.125%, 7/1/09

   1,000   1,055,000   0.9  

Huntsman Corp., Sr Nt,
11.5%, 7/15/122

   1,000   1,108,750   1.0  
Description   Par
(000)		   Value   Percent
of Net
Assets*		  

CHEMICALS (continued)

              

Huntsman Advanced Materials, Nt,
11%, 7/15/102

   $       200   $       233,000   0.2 %

Innophos, Inc., Sr Sub Nt,
8.875%, 8/15/142

   800   856,000   0.7  

Invista, Nt, 9.25%, 5/1/122

   1,000   1,072,500   0.9  

Johnsondiversey, Inc., Disc Nt,
0/10.67%, 5/15/13

   2,000   1,660,000   1.4  

Koppers Industry, Inc., Sec’d Nt,
9.875%, 10/15/13

   175   194,250   0.2  

Lyondell Chemical Co., Sr Sub Nt, 11.125%, 7/15/12

   1,000   1,165,000   1.0  

OM Group, Sr Sub Nt,
9.25%, 12/15/11

   700   733,250   0.6  

Omnova Solutions, Inc., Sr Nt,
11.25%, 6/1/10

   425   478,125   0.4  

Polyone Corp., Sr Nt, 8.875%, 5/1/12

   500   512,500   0.5  

Polyone Corp., Sr Nt,
10.625%, 5/15/10

   1,700   1,870,000   1.6  

Rhodia SA, Sr Nt, 10.25%, 6/1/10

   1,000   1,040,000   0.9  

Rockwood Specialties Corp., Sr Sub Nt, 10.625%, 5/15/11

   500   552,500   0.5  

Terra Capital, Inc., Sr Nt,
12.875%, 10/15/08

   1,025   1,276,125   1.1  

Terra Capital, Inc., Sr Nt,
11.5%, 6/1/10

   1,250   1,418,750   1.2  

United Agri Products, Sr Disc Nt,
0/10.75%, 7/15/122

   1,000   770,000   0.7  
       
 
        21,362,000   18.5  

CONSUMER PRODUCTS — 3.8%

          

Amscan Holdings, Sr Sub Nt,
8.75%, 5/1/142

   250   256,250   0.2  

Home Products International, Inc.,
Sr Sub Nt, 9.625%, 5/15/08

   932   787,540   0.7  

Leiner Health Products, Sr Sub Nt,
11%, 6/1/122

   500   533,750   0.5  

Levi Straus and Co., Nt, 7%, 11/1/06

   500   502,500   0.4  

Levi Straus and Co., Sr Nt,
12.25%, 12/15/12

   750   796,875   0.7  

Solo Cup Company, Sr Sub Nt,
8.5%, 2/15/14

   1,000   990,000   0.9  

Westpoint Stevens, Inc., Bank Debt,
9.25%, 11/30/04

   671   476,659   0.4  

Westpoint Stevens, Inc., Sr Nt,
7.875%, 6/15/051,4

   1,000   3,750   0.0  
       
 
        4,347,324   3.8  

 

 

3

PACHOLDER HIGH YIELD FUND, INC.

Statement of Net Assets Applicable to Common Stockholders (continued)

September 30, 2004 (Unaudited)

 

Description   Par
(000)		   Value   Percent
of Net
Assets*		  

ENERGY — 7.6%

          

Bluewater Finance, Ltd., Sr Nt,
10.25%, 2/15/12

   $       350   $       381,500   0.3 %

Citgo Petroleum Corp., Sr Nt,
11.375%, 2/1/11

   750   886,875   0.8  

Coastal Corp., Sr Nt, 7.625%, 9/1/08

   500   506,250   0.4  

El Paso Corp., Sr Nt, 7.875%, 6/15/12

   1,250   1,246,875   1.1  

Hanover Compressor, Sr Nt,
9%, 6/1/14

   250   275,625   0.2  

Parker Drilling Corp., Sr Sec’d Nt,
9.625%, 10/1/13

   1,100   1,232,000   1.1  

Petrobas Int’l Finance, Nt,
7.75%, 9/15/14

   1,000   995,000   0.9  

Petroleum Geo-Services, Nt,
10%, 11/5/10

   500   568,750   0.5  

Secunda Int’l, Ltd., FRN,
9.76%, 9/1/122

   500   498,750   0.4  

Seitel, Inc., Sr Nt, 11.75%, 7/15/112

   500   513,750   0.4  

Star Gas Partner/Finance, Sr Nt,
10.25%, 2/15/13

   1,000   1,100,000   1.0  

Transmontaigne, Inc., Sr Sub Nt,
9.125%, 6/1/10

   500   563,750   0.5  
       
 
        8,769,125   7.6  

FINANCE — 3.7%

          

Advanta Capital Trust, Co Guar,
8.99%, 12/17/26

   1,810   1,647,100   1.4  

Crum & Forster Holding, Inc., Sr Nt, 10.375%, 6/15/13

   500   536,250   0.5  

Providian Capital I, Bank Guar,
9.525%, 2/1/272

   1,250   1,293,750   1.1  

Refco Finance Holdings, Sr Sub Nt,
9.0%, 8/1/122

   800   858,000   0.7  
       
 
        4,335,100   3.7  

FOOD & DRUG — 1.2%

          

Great Atl & Pac Tea Co., Sr Nt,
9.125%, 12/15/11

   245   188,650   0.2  

Great Atl & Pac Tea Co., Sr Nt,
7.75%, 4/15/07

   655   573,125   0.5  

Penn Traffic, Co., Sr Nt,
11%, 6/29/091,4

   894   165,390   0.1  

Petro Shopping Center, Sec’d Nt,
9%, 2/15/12

   400   426,000   0.4  
       
 
        1,353,165   1.2  
Description   Par
(000)		   Value   Percent
of Net
Assets*		  

FOOD & TOBACCO — 10.2%

          

Apple South, Inc., Sr Nt,
9.75%, 6/1/061,4

   $    1,500   $       562,500   0.5 %

Avado Brands, Inc., Sr Sub Nt,
11.75%, 6/15/091,4

   500   7,500   0.0  

Burns Philp Cap Pty/US, Sr Sub Nt, 10.75%, 2/15/11

   500   555,000   0.5  

Gold Kist, Inc., Sr Nt,
10.25%, 3/15/142

   750   836,250   0.7  

Golden State Foods, Sr Sub Nt,
9.24%, 1/10/12

   1,250   1,259,375   1.1  

Land O Lakes, Inc., Sr Nt,
8.75%, 11/15/11

   1,000   940,000   0.8  

Land O Lakes, Inc., Sr Nt,
9%, 12/15/102

   500   523,125   0.5  

National Wine & Spirits, Inc., Sr Nt, 10.125%, 1/15/09

   1,350   1,302,750   1.1  

North Atlantic Trading, Sr Nt,
9.25%, 3/1/12

   300   289,500   0.3  

Premium Standard Farms, Sr Nt,
9.25%, 6/15/11

   1,985   2,084,250   1.8  

Real Mex Restaurants, Sec’d Nt,
10%, 4/1/102

   500   505,000   0.4  

Sbarro, Inc., Sr Nt, 11%, 9/15/09

   1,800   1,692,000   1.5  

Swift and Co., Sr Nt,
10.125%, 10/1/09

   850   937,125   0.8  

Swift and Co., Sr Sub Nt,
12.5%, 1/1/10

   250   277,500   0.2  
       
 
        11,771,875   10.2  

FOREST PRODUCTS & CONTAINERS — 7.8%

          

Anchor Glass Container, Sr Sec’d Nt,
11%, 2/15/13

   500   572,500   0.5  

Buckeye Cellulose Corp., Sr Sub Nt,
9.25%, 9/15/08

   1,410   1,417,050   1.2  

Buckeye Technologies, Inc., Sr Sub Nt,
8%, 10/15/10

   465   458,025   0.4  

Consolidated Container, Sr Disc Nt, 0/10.75%, 6/15/092

   600   486,000   0.4  

Constar International, Sr Sub Nt,
11%, 12/1/12

   1,200   1,140,000   1.0  

Crown Cork & Seal, Sr Sec’d Nt,
10.875%, 3/1/13

   500   583,750   0.5  

Fibermark, Inc., Sr Nt,
10.75%, 4/15/111,4

   720   457,200   0.4  

 

 

4

PACHOLDER HIGH YIELD FUND, INC.

Statement of Net Assets Applicable to Common Stockholders (continued)

September 30, 2004 (Unaudited)

 

Description   Par
(000)		   Value   Percent
of Net
Assets*		  

FOREST PRODUCTS & CONTAINERS (continued)

      

Portola Packaging Inc., Sr Nt,
8.25%, 2/1/12

   $    1,500   $    1,185,000   1.0 %

Tembec Industries, Sr Nt, 8.5%, 2/1/11

   1,000   1,050,000   0.9  

US Can Corp., Sec’d Nt,
10.875%, 7/15/10

   875   903,437   0.8  

Vitro Envases Norteamerica, Sec’d Nt, 10.75%, 7/23/112

   850   837,250   0.7  
       
 
        9,090,212   7.8  

GAMING & LEISURE — 1.6%

          

Bally Total Fitness Holding Corp., Sr Sub Nt, 9.875%, 10/15/07

   800   652,000   0.6  

Bally Total Fitness Holding Corp., Sr Nt, 10.5%, 7/15/11

   1,200   1,146,000   1.0  
       
 
        1,798,000   1.6  

HEALTH CARE — 10.8%

          

Alliance Imaging, Inc., Sr Sub Nt,
10.375%, 4/15/11

   1,050   1,145,813   1.0  

Ameripath, Inc., Sr Sub Nt,
10.5%, 4/1/13

   1,000   1,020,000   0.9  

Encore Medical IHC, Inc., Sr Sub Nt, 9.75%, 10/1/122

   800   794,000   0.7  

Healthsouth Corp., Sr Nt,
8.375%, 10/1/11

   500   499,375   0.4  

Healthsouth Corp., Nt, 7.625%, 6/1/12

   600   583,500   0.5  

Iasis Healthcare Corp., Sr Sub Nt,
8.75%, 6/15/142

   400   421,000   0.4  

Insight Health Services, Sr Sub Nt,
9.875%, 11/1/11

   1,950   1,959,750   1.7  

Medcath Holdings Corp., Sr Nt,
9.875%, 7/15/122

   600   630,000   0.5  

Medical Device Manufacturing, Inc.,
Sr Sub Nt, 10%, 7/15/122

   300   319,500   0.3  

Psychiatric Solutions, Sr Sub Nt,
10.625%, 6/15/13

   500   567,500   0.5  

Res-Care, Inc., Co Guar,
10.625%, 11/15/08

   540   585,900   0.5  

Team Health, Inc., Sr Sub Nt,
9%, 4/1/122

   750   750,000   0.6  

Tenet Healthcare Corp., Sr Nt,
6.375%, 12/1/11

   600   541,500   0.5  

Tenet Healthcare Corp., Sr Nt,
9.875%, 7/1/142

   1,000   1,050,000   0.9  

US Oncology, Inc., Sr Nt, 9%, 8/15/122

   300   312,000   0.3  
Description   Par
(000)		   Value   Percent
of Net
Assets*		  

HEALTH CARE (continued)

          

Universal Hospital Services, Sr Nt,
10.125%, 11/1/11

   $       250   $       255,000   0.2 %

Vanguard Health Holdings II, Sr Sub Nt,
9%, 10/1/142

   1,000   1,007,500   0.9  
       
 
        12,442,338   10.8  

HOUSING — 1.7%

              

Fedders NA, Sr Nt, 9.875%, 3/1/14

   1,000   837,500   0.7  

Interface, Inc., Sr Sub Nt, 9.5%, 2/1/14

   1,100   1,144,000   1.0  
       
 
        1,981,500   1.7  

INFORMATION TECHNOLOGY — 3.1%

          

Amkor Technology, Inc., Sr Nt,
7.125%, 5/15/11

   1,200   990,000   0.9  

Danka Business Systems, Sr Nt,
11%, 6/15/10

   875   923,125   0.8  

On Semiconductor Corp., Sr Sec’d Nt,
12%, 5/15/08

   544   612,000   0.5  

On Semiconductor Corp., Sr Sec’d Nt,
12%, 3/15/10

   130   150,150   0.1  

Viasystems, Sr Sub Nt,
10.5%, 1/15/11

   1,000   955,000   0.8  
       
 
        3,630,275   3.1  

MANUFACTURING — 6.2%

              

Blount, Sr Sub Nt, 8.875%, 8/1/122

   500   533,750   0.5  

Columbus McKinnon, Sec’d Nt,
10%, 8/1/10

   175   193,375   0.2  

Day International Group, Inc., Sub Nt,
9.5%, 3/15/08

   2,000   2,040,000   1.8  

Douglas Dynamics, Inc., 2nd Lien Bank Debt, 7.17%, 3/19/11

   160   162,000   0.1  

Douglas Dynamics, Inc., 2nd Lien Bank Debt, 7.31%, 3/19/11

   170   172,125   0.1  

Douglas Dynamics, Inc., 2nd Lien Bank Debt, 7.58625%, 3/19/11

   170   172,125   0.1  

Interline Brands, Inc., Sr Sub Nt,
11.5%, 5/15/11

   500   557,500   0.5  

Invensys PLC, Sr Nt, 9.875%, 3/15/112

   1,000   1,030,000   0.9  

Key Components, LLC, Sr Sub Nt,
10.5%, 6/1/08

   500   515,000   0.5  

Park-Ohio Industries, Sr Sub Nt,
9.25%, 12/1/07

   500   510,000   0.4  

Precision Partners, Inc., Sr Sub Nt,
12%, 2/1/073

   328   327,537   0.3  

 

 

5

PACHOLDER HIGH YIELD FUND, INC.

Statement of Net Assets Applicable to Common Stockholders (continued)

September 30, 2004 (Unaudited)

 

Description   Par
(000)		   Value   Percent
of Net
Assets*		  

MANUFACTURING (continued)

              

Precision Partners, Inc., Term Loan C, Bank Debt, 18%, 1/1/073

   $       425   $       425,331   0.4 %

Thermadyne Holdings Corp., Sr Sub Nt,
9.25%, 2/1/14

   200   195,500   0.2  

Von Hoffman Corp., Sr Nt,
10.25%, 3/15/09

   250   278,750   0.2  
       
 
        7,112,993   6.2  

MEDIA & TELECOM: BROADCASTING — 1.4%

          

Granite Broadcasting Corp., Sec’d Nt,
9.75%, 12/1/10

   700   651,000   0.6  

LBI Media, Inc., Sr Disc Nt,
0/11%, 10/15/13

   875   635,469   0.6  

Nexstar Fin Hldg LLC, Inc., Sr Disc Nt, 0/11.375%, 4/1/13

   250   192,812   0.2  
       
 
        1,479,281   1.4  

MEDIA & TELECOM: CABLE — 7.6%

          

Adelphia Communications, Corp., Sr Nt, 9.375%, 11/15/091,4

   1,500   1,387,500   1.2  

Adelphia Communications, Corp., Sr Nt, 8.125%, 7/15/031,4

   750   660,000   0.6  

Adelphia Communications, Corp., Sr Nt,
6%, 2/15/061,4

   125   34,375   0.0  

Charter Communications Holdings LLC, Sr Nt, 10%, 4/1/09

   2,000   1,630,000   1.4  

Charter Communications Holdings LLC, Sr Nt, 11.125%, 1/15/11

   200   163,000   0.1  

Insight Communications, Inc.,
Sr Disc Nt, 0/12.25%, 2/15/11

   2,000   1,880,000   1.6  

Insight Midwest, Sr Nt, 10.5%, 11/1/10

   500   550,000   0.5  

Mediacom LLC/Capital Corp., Sr Nt,
9.50%, 1/15/03

   900   870,750   0.8  

Panamsat Corp., Sr Nt, 9%, 8/15/142

   1,000   1,045,000   0.9  

Panamsat Corp., Sr Disc Nt,
10.375%, 11/1/142

   1,000   588,750   0.5  
       
 
        8,809,375   7.6  

MEDIA & TELECOM: FIXED COMMUNICATIONS — 6.2%

      

Alaska Communications Systems Holdings, Inc., Sr Sub Nt,
9.375%, 5/15/09

   530   503,500   0.4  

Cincinnati Bell Telephone, Sr Sub Nt,
8.375%, 1/15/14

   1,150   1,055,125   0.9  

Fisher Communications, Inc, Sr Nt,
8.625%, 9/15/142

   300   313,500   0.3  
Description   Par
(000)		   Value   Percent
of Net
Assets*		  

MEDIA & TELECOM: FIXED COMMUNICATIONS (continued)

      

MCI Communications, Sr Nt,
6.688%, 5/1/09

   $    1,000   $       966,250   0.8 %

Mastec, Inc., Sr Sub Nt, 7.75%, 2/1/08

   605   552,063   0.5  

Qwest Communications, Sr Nt,
5.211%, 2/15/092

   1,001   958,457   0.8  

Qwest Services Corp., Sr Nt,
7.875%, 9/1/112

   100   104,250   0.1  

RCN Corp., Sr Nt, 10%, 10/15/071,4

   1,400   721,000   0.6  

RCN Corp., Sr Nt, 10.125%, 1/15/101,4

   1,000   525,000   0.5  

Time Warner Communications, Sr Nt,
9.75%, 7/15/08

   1,000   995,000   0.9  

Time Warner Communications, Sr Nt,
9.25%, 2/15/14

   500   500,000   0.4  
       
 
        7,194,145   6.2  

MEDIA & TELECOM: WIRELESS COMMUNICATIONS — 9.0%

      

Alamosa Delaware, Inc., Co Guar,
11%, 7/31/10

   975   1,109,063   1.0  

Alamosa Delaware, Inc., Sr Nt,
8.5%, 1/31/12

   300   305,250   0.3  

ACC Escrow Corp., Sr Nt, 10%, 8/1/11

   1,000   815,000   0.7  

Centennial Cellular, Sr Nt,
10.125%, 6/15/13

   1,570   1,660,275   1.4  

Horizon PCS, Inc., Sr Nt,
11.375%, 7/15/122

   350   365,750   0.3  

Metropcs, Inc., Sr Nt,
10.75%, 10/1/11

   500   540,000   0.5  

Rural Cellular Corp., Sr Sub Nt,
9.625%, 5/15/08

   2,050   1,906,500   1.7  

SBA Communications Corp., Sr Disc Nt, 0/9.75%, 12/15/11

   500   407,500   0.3  

TSI Telecommunications, Inc.,
Sr Sub Nt, 12.75%, 2/1/09

   1,200   1,350,000   1.2  

US Unwired, Inc., Sr Sec’d Nt,
10%, 6/15/12

   450   469,125   0.4  

Ubiquitel Operating Corp., Sr Nt,
9.875%, 3/1/112

   750   784,687   0.7  

Ubiquitel Operating Corp., Sr Nt,
Add-on, 9.875%, 3/1/112

   500   523,125   0.5  
       
 
        10,236,275   9.0  

MEDIA & TELECOM: DIVERSIFIED — 8.4%

          

Dex Media West, LLC, Sr Sub Nt,
9.875%, 8/15/13

   439   518,020   0.4  

IMAX Corp., Sr Nt, 9.625%, 12/1/102

   2,100   2,105,250   1.8  

 

 

6

PACHOLDER HIGH YIELD FUND, INC.

Statement of Net Assets Applicable to Common Stockholders (continued)

September 30, 2004 (Unaudited)

 

Description   Par
(000)		   Value   Percent
of Net
Assets*		  

MEDIA & TELECOM: DIVERSIFIED (continued)

          

Liberty Group Operating, Inc.,
Sr Sub Nt, 9.375%, 2/1/08

   $    1,430   $    1,447,875   1.3 %

Liberty Group Publishing, Inc.,
Sr Disc Nt, 0/11.625%, 2/1/09

   1,125   1,119,375   1.0  

LCE Acquisition Corp., Sr Sub Nt,
9%, 8/1/142

   400   415,000   0.4  

Mail-Well I Corp., Sr Sub Nt,
7.875%, 12/1/13

   1,000   980,000   0.8  

Phoenix Color Corp., Sr Sub Nt,
10.375%, 2/1/09

   1,330   1,283,450   1.1  

Six Flags Ent Corp, Sr Nt, 9.5%, 2/1/09

   500   491,250   0.4  

True Temper Sports, Inc., Sr Sub Nt,
8.375%, 9/15/11

   500   467,500   0.4  

Universal City Development, Sr Nt,
11.75%, 4/1/10

   750   877,500   0.8  
       
 
        9,705,220   8.4  

METALS & MINERALS — 9.5%

              

AK Steel Corp., Co Guar,
7.875%, 2/15/09

   2,000   1,995,000   1.7  

Horizon Natural Resources, Sr Sub Nt,
11.75%, 5/8/091,4

   268   9,380   0.0  

ISPAT Inland ULC, Sec’d Nt,
9.75%, 4/1/14

   1,100   1,218,250   1.0  

JSC Severstal, Bonds,
9.25%, 4/19/142

   250   239,375   0.2  

MMI Products, Inc., Sr Sub Nt,
11.25%, 4/15/07

   2,355   2,390,325   2.1  

Neenah Corp., Sr Sub Nt,
11%, 9/30/102

   200   219,500   0.2  

Oglebay Norton Co., Sr Sub Nt,
10%, 2/1/091,4

   2,250   1,136,250   1.0  

Oglebay Norton Co., Sr Sub Nt,
13/18%, 10/25/081,4

   1,272   1,398,838   1.2  

Oregon Steel Mills, 1st Mtg,
10%, 7/15/09

   750   823,125   0.7  

Ryerson Tull, Inc., Sr Nt,
9.125%, 7/15/06

   750   795,000   0.7  

United Steel LLC, Sr Nt,
10.75%, 8/1/08

   485   574,725   0.5  

United Steel LLC, Sr Nt,
9.75%, 5/15/10

   168   193,200   0.2  
       
 
        10,992,968   9.5  
Description   Par
(000)		   Value   Percent
of Net
Assets*		  

RETAIL — 2.3%

              

Broder Bros. Co., Sr Nt,
11.25%, 10/15/10

   $       500   $       502,500   0.4 %

Rent-Way, Inc., Nt, 11.875%, 6/15/10

   750   821,250   0.7  

Riddell Bell Holdings, Sr Sub Nt,
8.375%, 10/1/122

   300   306,375   0.3  

Tom’s Foods, Inc., Sr Nt,
10.5%, 11/1/041,3,4

   1,000   995,000   0.9  
       
 
        2,625,125   2.3  

SERVICES — 3.1%

              

Allied Security Escrow, Sr Sub Nt,
11.375%, 7/15/112

   250   263,750   0.2  

Amerco, Sec’d Nt, 9%, 3/15/09

   366   381,951   0.3  

Amerco, Sec’d Nt, 12%, 3/15/11

   953   981,338   0.8  

Eagle-Picher, Inc., Sr Nt,
9.75%, 9/1/13

   500   512,500   0.4  

Nationsrent, Inc., Sr Sec’d Nt,
9.5%, 10/15/10

   300   327,000   0.3  

Sac Holdings, Sr Nt, 8.5%, 3/15/14

   1,323   1,303,007   1.1  
       
 
        3,769,546   3.1  

TRANSPORTATION — 12.6%

              

Airxcel, Inc., Sr Sub Nt, 11%, 11/15/07

   1,584   1,576,080   1.4  

Anchor Lamina, Inc., Sr Sub Nt,
9.875%, 2/1/08

   1,050   771,750   0.7  

Asbury Automotive, Co Guar,
9%, 6/15/12

   500   530,000   0.4  

Autocam Corp., Sr Sub Nt,
10.875%, 6/15/142

   2,175   2,180,437   1.9  

CP Ships, Ltd., Sr Sub Nt,
10.375%, 7/15/12

   500   575,000   0.5  

Delco Remy International, Inc.,
Sr Sub Nt, 11%, 5/1/09

   1,800   1,899,000   1.6  

Dura Operating Corp., Co Guar,
9%, 5/1/09

   1,000   895,000   0.8  

Greyhound Lines, Inc., Sr Sub Nt,
11.5%, 4/15/07

   1,260   1,269,450   1.1  

Laidlaw International, Inc., Sr Nt,
10.75%, 6/15/11

   500   573,125   0.5  

Milacron Escrow Corp., Sec’d Nt,
11.5%, 5/15/112

   1,750   1,863,750   1.6  

Sea Containers, Sr Nt, 10.5%, 5/15/12

   750   769,688   0.7  

TFM SA DE CV, Co Guar,
0/11.75%, 6/15/09

   400   406,000   0.3  

TFM SA DE CV, Sr Nt, 12.5%, 6/15/12

   1,100   1,226,500   1.1  
       
 
        14,535,780   12.6  

 

 

7

PACHOLDER HIGH YIELD FUND, INC.

Statement of Net Assets Applicable to Common Stockholders (continued)

September 30, 2004 (Unaudited)

 

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

UTILITIES — 8.1%

              

AES Corp., Sr Nt, 9.5%, 6/1/09

   $       875   $       982,188   0.8 %

AES Corp., Sr Nt, 9.375%, 9/15/10

   180   203,625   0.2  

Calpine Corp., Sr Nt, 8.5%, 5/1/08

   1,500   1,042,500   0.9  

Calpine Corp., Sr Nt,
8.625%, 8/15/10

   750   491,250   0.4  

Calpine Generating Co., 2nd FRN,
Sec’d Nt, 7%, 4/1/102

   500   477,500   0.4  

Calpine Generating Co., 3rd FRN,
Sec’d Nt, 10.25%, 4/1/112

   1,000   905,000   0.8  

Dynegy Holdings, Inc., Sec’d Nt,
9.875%, 7/15/102

   300   340,500   0.3  

Edison Mission, Inc., Sr Nt,
9.875%, 4/15/11

   2,000   2,340,000   2.0  

Midwest Generation LLC, Sec’d Nt,
8.75%, 5/1/34

   500   547,500   0.5  

Mirant Americas, Sr Nt,
8.3%, 5/1/111,4

   250   221,250   0.2  

Mirant Americas Generation LLC,
Sr Nt, 8.5%, 10/1/211,4

   500   440,000   0.4  

Dynegy/NGC Corp., Debentures,
7.125%, 5/15/18

   1,250   1,100,000   1.0  

NRG Energy, Inc., Sec’d Nt,
8%, 12/15/132

   250   269,062   0.2  
       
 
        9,360,375   8.1  
       
 

Total Corporate Debt Securities

              

(amortized cost $169,338,708)

       172,042,063   149.0  

CORPORATE CONVERTIBLE DEBT SECURITIES — 0.3%

      

PACKAGING — 0.3%

              

Indesco International, Inc., Conv,
Sr Sub Nt, 10%, 3/15/083

   291   290,529   0.3  
       
 
        290,529   0.3  
       
 

Total Convertible Corporate Debt Securities

              

(amortized cost $290,529)

       290,529   0.3  
       
 

Total Debt Securities

              

(amortized cost $169,629,237)

       172,332,592   149.3  

PREFERRED STOCKS — 2.0%

              

Glasstech, Inc., Series C, Pfd1,3

   5   0   0.0  

HLI Operating Co., Inc., Series A, Pfd, 8%, 12/31/49

   74   6,253   0.0  

Kaiser Group Holdings, Inc., Pfd,
7%, 12/31/07

   21,670   1,175,598   1.0  
Description   Shares/Par
(000)		   Value   Percent
of Net
Assets		  

PREFERRED STOCKS (continued)

              

McLeod USA, Inc., Conv Pfd,
2.5%, 4/18/12

   $    7,655   $         19,138   0.0 %

Rural Cellular Corp., Pfd,
11.375% PIK, 5/15/101,4

   1,000   837,500   0.7  

Spanish Broadcasting Systems, Pfd, 10.75%, 10/15/13

   261   286,447   0.3  

XO Communications, Inc., Pfd,
13.5% PIK, 6/1/101,4

   1,580   16   0.0  
       
 

Total Preferred Stocks

              

(cost $5,012,569)

       2,324,952   2.0  

COMMON STOCKS — 4.1%

              

Abovenet, Inc., Common Stock1

   1,702   40,848   0.0  

Cincinnati Bell, Inc., Common Stock1

   16,370   57,131   0.0  

Davel Communications, Inc.,
Common Stock1

   523,104   3,761   0.0  

Glasstech, Inc., Class C,
Common Stock1,3

   5   0   0.0  

Global Crossing Holding Ltd.,
Common Stock1

   5,158   85,210   0.1  

Indesco International, Inc.,
Common Stock1,3

   60,345   188,277   0.2  

Kaiser Group Holdings, Inc.,
Common Stock1

   58,011   1,508,286   1.3  

Leucadia National Corp.,
Common Stock1

   5,201   294,637   0.3  

MCI Communications, Inc.,
Common Stock1

   43,794   733,550   0.6  

Mattress Discounters,
Common Stock1,3

   8,329   8,329   0.0  

McLeod USA, Inc., Common Stock1

   375   161   0.0  

Metrocall, Inc., Common Stock1

   7,480   485,078   0.4  

Precision Partners, Inc.,
Common Stock1,3

   1,141   245,315   0.2  

Simonds Industries, Inc.,
Common Stock1,3

   8,236   138,859   0.1  

Telewest PLC, Common Stock1

   85,210   990,140   0.9  

WHX Corp., Common Stock1

   8   8   0.0  

Wiltel Communication, Rights1,3

   18   0   0.0  

XO Communications, Inc.,
Common Stock1

   1,524   4,816   0.0  
       
 

Total Common Stocks

              

(cost $16,914,854)

       4,784,406   4.1  

 

 

8

PACHOLDER HIGH YIELD FUND, INC.

Statement of Net Assets Applicable to Common Stockholders (continued)

September 30, 2004 (Unaudited)

 

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

WARRANTS — 0.0%

              

Abovenet, Inc., Warrants1,3

   $       584   $           2,336   0.0 %

Abovenet, Inc., Warrants1,3

   687   0   0.0  

Hayes Lemmerz International, Inc., Warrants1

   1,679   2,267   0.0  

Huntsman Corp., Warrants1,3

   500   11,500   0.0  

McLeod USA, Inc., Warrants1

   16,963   1,866   0.0  

XO Communications, Series A, Warrants1

   3,047   2,529   0.0  

XO Communications, Series B, Warrants1

   2,285   1,371   0.0  

XO Communications, Series C, Warrants1

   2,285   891   0.0  
       
 

Total Warrants

              

(cost $2,135,764)

       22,760   0.0  
       
 

Total Equity Investments

              

(amortized cost $24,063,187)

       7,132,118   6.1  

REPURCHASE AGREEMENTS5 — 40.7%

          

Citigroup Global Markets Corp.
1.975%, dated 9/30/04, matures 10/1/04 repurchase price $7,000,384

   7,000   7,000,000   6.1  

Goldman Sachs Corp.
1.945%, dated 9/30/04, matures 10/1/04 repurchase price $15,000,810

   15,000   15,000,000   13.0  

Lehman Brothers A3/P3 1.88%, dated 9/30/04, matures 10/1/04 repurchase price $2,031,789

   2,032   2,031,683   1.7  

Merrill Lynch A1/P1 1.905%, dated 9/30/04, matures 10/1/04 repurchase price $10,000,529

   10,000   10,000,000   8.7  

Merrill Lynch Corp. 2.025, dated 9/30/04, matures 10/1/04 repurchase price $13,000,731

   13,000   13,000,000   11.2  
       
 

Total Repurchase Agreements

              

(cost $47,031,683)

       47,031,683   40.7  
       
 

TOTAL INVESTMENTS6

              

(amortized cost $240,724,107)

       $226,496,393   196.1 %
       
 
Description   Value     Percent
of Net
Assets		  

Payable Upon Return of Securities Loaned

   $(47,031,683 )   (40.7 )%

Payable to Advisor

   (962,428 )   (0.8 )

Payable to Administrator

   (23,630 )   0.0  

Accounting Fees Payable

   (6,928 )   0.0  

Custody Fees Payable

   (5,969 )   0.0  

Other Assets in Excess of Other Liabilities

   3,013,322     2.6  

Less: Outstanding Preferred Stock (2,640 shares at $25,000 per share) at liquidation value.

   (66,000,000 )   (57.2 )
   
 

Net Assets Applicable to Common Stockholders

   $115,479,077     100.0  
   
     

Net Asset Value Per Common Share ($115,479,077/12,885,301)

   $8.96        
   
     
*   Applicable to common stockholders.
1   Non-income producing security.
2   Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities amounted to $35,565,994.
3   Board valued security. These securities amounted to $1,638,012.
4   Security in default.
5   Investments held as collateral for securities on loan. Fully collateralized by money market securities, investment grade corporate bonds, and non-investment grade corporate bonds with a fair market value of $49,546,353.
6   Includes securities loaned with a fair market value of $45,432,199.
PIK   Payment in kind.

 

 

9

Item 2. Controls and Procedures.

 

(a) The Fund’s President and Treasurer have concluded that the Fund’s disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the Fund in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

 

(b) There were no changes in the Fund’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the Fund’s internal controls over financial reporting.

 

Item 3. Exhibits.

 

(a) Certifications of President and Treasurer as required by Rule 30a-2(a) under the Investment Company Act of 1940 attached hereto as part of EX-99.CERT.

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.

 

/s/ William J. Morgan

  

November 19, 2004

William J. Morgan

  

Date

President

    

 

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.

 

/s/ William J. Morgan

  

November 19, 2004

William J. Morgan

  

Date

President

    

 

/s/ James E. Gibson

  

November 19, 2004

James E. Gibson

  

Date

Treasurer