Prospect Street High Income Portfolio (PHY) N-PX Annual report of proxy voting record

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-PX

annual report of proxy voting record of
registered management investment company

Investment Company Act file number:   811-05557     

Prospect Street High Income Portfolio Inc.

(Exact name of registrant as specified in charter)

c/o Highland Capital Management, L.P.
13455 Noel Road, Suite 1300
Dallas, Texas 75240

(Address of principal executive offices) (Zip code)

James D. Dondero
Highland Capital Management, L.P.
13455 Noel Road, Suite 1300
Dallas, Texas 75240

(Name and address of agent for service)

Registrant’s telephone number, including area code: (877) 532-2834

Date of fiscal year end: 10/31/2005

Date of reporting period: July 1, 2004-June 30, 2005

TABLE OF CONTENTS

	Item 1. Proxy Voting Record
SIGNATURES

Item 1. Proxy Voting Record

Prospect Street High Income Portfolio Inc.

			Shareholder		Matter proposed by	Did the Fund	How the Fund	Vote cast for
Name	Ticker	CUSIP	Meeting Date	Subject	Issuer or Security Holder	cast its vote?	cast its vote	or against Mgmt
Viatel Viatel Viatel Viatel	NA NA NA NA	G93447103 G93447103 G93447103 G93447103	12/8/04   12/8/04 12/8/04   12/8/04	Receive the Auditors’ Report and Financial Statements for year ended 12/31/03 Appointment of Auditors Authorization of Board to determine the renumeration of the Auditors Election of Directors	ISSUER   ISSUER ISSUER   ISSUER	YES   YES YES   YES	FOR PROPOSAL FOR PROPOSAL FOR PROPOSAL FOR PROPOSAL	FOR MANAGEMENT FOR MANAGEMENT FOR MANAGEMENT FOR MANAGEMENT
Motient Corporation Motient Corporation Motient Corporation Motient Corporation	MNCP MNCP MNCP MNCP	619908304 619908304 619908304 619908304	6/15/05 6/15/05 6/15/05   6/15/05	Election of Directors Appointment of Auditors Proposal to amend certifcate of Incorporation to increase number of authorized shares. Proposal to amend 2002 Stock Option Plan to increase by 2,500,000 the number of shares authorized for issuance.	ISSUER ISSUER ISSUER   ISSUER	YES YES YES   YES	FOR PROPOSAL FOR PROPOSAL FOR PROPOSAL AGAINST PROPOSAL	FOR MANAGEMENT FOR MANAGEMENT FOR MANAGEMENT AGAINST MANAGEMENT

-2-

SIGNATURES

Pursuant to the requirements of 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.

	Prospect Street High Income Portfolio Inc.
By:	/s/ James D. Dondero
	James D. Dondero
	Chief Executive Officer

Date: August 22, 2005

Pursuant to the requirements of the Investment Company Act of 1940, this Report has been signed below by the principal executive officer on behalf of the Registrant on the date indicated.

By:	/s/ James D. Dondero
	James D. Dondero
	Chief Executive Officer

Date: August 22, 2005

-3-