The Pacholder High Yield Fund, Inc. is revising the previously reported net asset values (“NAVs”) for the Fund from June 30, 2004 thru July 15, 2004 to reflect the current estimate of the Fund’s performance-based investment advisory fee. The originally reported and revised NAVs for each of the reporting dates are as follows:

Date, Originally Reported NAV, Revised NAV

June 30, 2004, $8.76, $8.73

July 1, 2004, $8.77, $8.74

July 8, 2004, $8.83, $8.80

July 15, 2004, $8.89, $8.85

The annual rate of the Fund’s investment advisory fee ranges from 0.4% to 1.4% of the Fund’s average net assets, based on the total return investment performance of the Fund (net of all fees and expenses, including the advisory fee, and dividends on the Fund’s preferred shares), relative to the percentage change in the CSFB High Yield Index, Developed Countries Only for the same period. The Fund paid advisory fees equal to 0.4% for the fiscal year ended December 31, 2002 and 1.4% for the fiscal year ended 2003.

The Fund is a closed-end diversified management investment company with a leveraged capital structure. The Fund’s investment objective is to provide a high level of total return through current income and capital appreciation. Under normal circumstances, the Fund invests at least 80% of the value of its assets in high yield securities. The Fund invests primarily in fixed income securities of domestic companies. The Fund’s common stock is traded on the American Stock Exchange under the symbol “PHF.”