NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

Pacholder High Yield Fund, Inc.

Data as of December 31, 2013

Fund overview
Objective
A closed-end fund that seeks a high level of current income by investing primarily in a diversified portfolio of debt securities that are rated below investment grade or unrated. Capital appreciation is a secondary objective.
Strategy
Yield Spread
This chart represents the difference in yield (spread), as expressed in basis points, between the Lipper
High Current Yield Funds Avergae and Treasury Notes. Average: 600; December 2013: 382.

Average Spread

2000

1500

1000

500

0

12/97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11

'12 '13

• Invests in all types of high-yield, high-risk debt securities.
• Focuses on value by looking at individual securities against the context of broader market factors.
• Monitors investments by staying abreast of positive and negative credit developments and having regular discussions with senior management of issuers of the Fund's investments.
Portfolio managers/industry experience
William J. Morgan, lead portfolio manager; 32 years James P. Shanahan, portfolio manager; 28 years James E. Gibson, principal trader; 26 years

Portfolio characteristics**
Symbol PHF Inception date 11/17/1988
Number of issuers 815
Fund assets -
common shares (in millions) $112.2
Outstanding preferred
shares (in millions) $43
Stock price $7.86
NAV $8.63
Premium/discount (%) -8.92
Common shares issued 12,995,297
Dividend yield (%) 9.61
Estimated undistributed net investment income
per common share ($0.0359)

Yield to maturity (%)***

Under 9% 91.6
9.0%-9.9% 1.6
10.0%-10.9% 2.0
11.0%-11.9% 0.8
12.0% and over 3.9
Average maturity 7.27 years

Effective weighted average life distribution(%)***
Less than one year 11.5
Years 1-5 42.2
Years 6-10 40.8
Years 11-20 5.4

Quality (%)***

BBB 3.1
BB 26.1
Credit Suisse First Boston High Yield Index (Developed Countries Only). Prior to 1999, the benchmark was the Credit Suisse First
Boston High Yield Index. The data does not include applicable sales charges, and does not depict or predict the performance of
the Fund or the indices. Past performance of the market does not guarantee future results. Fund shares, when sold, may be worth
more or less than their initial cost. It is not possible to invest in the indexes shown.
Total returns Average annual total returns
Total returns at NAV* (%) as of 12/31/13 3 month YTD 1 yr 3 yrs 5 yrs 10 yrs

Calendar-year returns* (%) 2009 2010 2011 2012 2013
Net asset value per common share 112.50 24.10 0.39 20.00 9.99

Market value per common share 126.57 27.90 17.09 9.02 -3.19
Lipper High Current Yield Funds Average 49.49 14.91 2.85 14.66 6.82

Barclays U.S. Corporate High Yield - 2% Issuer Capped 58.76 14.94 4.96 15.78 7.44
Credit Suisse First Boston High Yield Index
(Developed Countries Only) 54.33 14.39 5.46 14.76 7.53

*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 original cost. Current performance may be higher or lower than the performance data shown. For performance current to the most recent month-end please call 1-877-217-9502.

Morningstar ratings as of 12/31/13 Overall 3 year 5 year 10 year

Rating/number of funds in category