<PAGE>
USF&G PACHOLDER FUND, INC.
- --------------------------------------------------------------------------------
DEAR STOCKHOLDERS:
For the third quarter, USF&G Pacholder Fund, Inc. (the "Fund") posted its
best quarter of the year with a total return of 6.18%, compared to the CS First
Boston High Yield Index (the "Index") total return of 3.75%. On a year-to-date
basis through the third quarter, the Fund reported a total return of 13.52%,
which is 5.85% above the Index's total return of 7.67%. Keeping with our long
standing strategy of being well diversified, the Fund held securities of 113
companies in its portfolio at the end of the quarter. The Fund continues to
maintain a higher weighted average coupon than the Index, 11.24% compared to
10.57%, due to our preference to de-emphasize the use of zero-coupon issues,
which tend to be some of the more speculative in the high-yield market.
Interest rates were volatile during the latest period, but ended the quarter
about where they began. The 10-year U.S. Treasury Note ended the quarter yield-
ing 6.70% and has continued to fall during the month of October. The concern
that the Fed would raise short-term interest rates abated during the last few
months and this has helped fuel both the bond and stock markets. The Index's
spread relative to the comparable U.S. Treasury issues compressed approximately
35 basis points during the quarter to 383 basis points (3.83%) as demand for
high-yield bonds was stronger than the supply. The strong performance in the
high-yield market so far in 1996 has been fueled by many factors including: an
economy growing at a reasonable pace with a controllable level of inflation;
record inflows into high-yield mutual funds and strong demand from other buy-
side accounts; and an increase in tender/call redemptions and mergers & acqui-
sition activity which tends to drive the value of high-yield bonds higher.
We believe that the condition of the high-yield market is sound, but we re-
main cautious going into the fourth quarter. We feel that your Fund is well po-
sitioned, sufficiently diversified among issuers and industries, and will be
able to take advantage of select value opportunities as we have done in the
past.
The performance of the Fund as compared to the Index is illustrated in the
following table.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Performance Comparison*
(For the periods ended September 30, 1996)
- --------------------------------------------------------------------------------
Since
Nine Inception**
Months (Annualized)
- --------------------------------------------------------------------------------
<S> <C> <C>
USF&G Pacholder Fund, Inc. 13.52% 12.20%
- --------------------------------------------------------------------------------
CS First Boston High Yield Index(TM) 7.67% 11.49%
- --------------------------------------------------------------------------------
</TABLE>
*The CS First Boston High Yield Index(TM) is an unmanaged index that is widely
used as a measurement of high-yield market performance. These figures assume
reinvestment of interest, dividends and capital gains distributions. Past
performance is no guarantee of future results.
**Inception date--November 11, 1988.
We thank you for your support of the Fund and look forward to continuing to
serve your investment needs in the future.
Sincerely,
/s/ Anthony L. Longi, Jr.
Anthony L. Longi, Jr.
President
October 25, 1996
<PAGE>
USF&G PACHOLDER FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1996
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT
PAR OF NET
DESCRIPTION (000) VALUE ASSETS
- -------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE DEBT SECURITIES -- 94.7%
AEROSPACE & DEFENSE -- 1.6%
BE Aerospace, Sr Sub Nt,
9.875%, 2/1/06 $ 500 $ 503,750 0.4%
Greenwich Air, Sr Nt,
10.5%, 6/1/06 750 770,625 0.7
Sabreliner Corp., Sr Nt,
12.5%, 4/15/03 725 623,500 0.5
------------ ---
1,897,875 1.6
AUTO PARTS & EQUIPMENT -- 1.7%
APS Inc., Sr Sub Nt,
11.875%, 1/15/06 500 542,500 0.5
JPS Automotive Products Corp., Sr Nt,
11.125%, 6/15/01 1,350 1,390,500 1.2
------------ ---
1,933,000 1.7
BEVERAGE & TOBACCO -- .8%
Cott Corp., Sr Nt,
9.375%, 7/1/05 1,000 990,000 0.8
------------ ---
BROADCAST RADIO & TV -- 4.2%
Argyle Television, Sr Sub Nt,
9.75%, 11/1/05 750 751,875 0.6
Granite Broadcasting Corp., Sr Sub Nt,
10.375%, 5/15/05 1,100 1,119,250 1.0
Heritage Media, Sr Sec Nt,
11%, 6/15/02 500 532,500 0.5
Sinclair Broadcast Group, Sr Sub Nt,
10%, 9/30/05 1,500 1,507,500 1.3
Young Broadcasting, Sr Sub Nt,
9%, 1/15/06 1,000 940,000 0.8
------------ ---
4,851,125 4.2
BUILDING -- 2.1%
Harrow Industries Inc., Sr Sub Deb,
12.375%, 4/15/02 1,378 1,364,220 1.2
Triangle Pacific Corp., Sr Nt,
10.5%, 8/1/03 1,000 1,050,000 0.9
------------ ---
2,414,220 2.1
</TABLE>
<TABLE>
<CAPTION>
PERCENT
PAR OF NET
DESCRIPTION (000) VALUE ASSETS
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
BUSINESS SERVICES &
EQUIPMENT -- 6.5%
Day International Group Inc., Sr Sub Nt,
11.125%, 6/1/05 $1,000 $ 1,031,250 0.9%
Iron Mountain Inc., Sr Sub Nt,
10.125%, 10/1/06 250 256,250 0.2
Knoll Inc., Sr Sub Nt,
10.875%, 3/15/06 1,000 1,061,250 0.9
National Fiberstock, Sr Nt,
11.625%, 6/15/02/2/ 1,000 1,027,500 0.9
Pierce Leahy Corp, Sr Sub Nt,
11.125%, 7/15/06/2/ 750 800,625 0.7
San Jacinto Holdings, Sr Sub Nt,
12%, 12/31/02 2,823 2,088,724 1.8
United Stationer Supplies, Sr Nt,
12.75%, 5/1/05 1,250 1,356,250 1.1
------------ ---
7,621,849 6.5
CABLE TELEVISION -- 4.9%
Cablevision Systems Corp., Sr Sub Nt,
9.25%, 11/1/05 500 485,000 0.4
Cablevision Systems Corp., Sr Sub Nt,
10.5%, 5/15/16 1,000 1,015,000 0.9
Comcast Corporation, Sr Sub Nt,
9.125%, 10/15/06 1,000 993,750 0.9
Fundy Cable Ltd., Sr Nt,
11%, 11/15/05 1,000 1,045,000 0.9
Jones Intercable, Sr Sub Nt,
11.5%, 7/15/04 1,000 1,093,750 0.9
Rifkin Acq. Partners LP, Sr Sub Nt,
11.125%, 1/15/06 1,000 1,035,000 0.9
------------ ---
5,667,500 4.9
CHEMICALS/PLASTIC -- 7.7%
Applied Extrustion Technologies Inc.,
Sr Unsecd Nt, 11.5%, 4/1/02 1,500 1,543,125 1.3
Berry Plastics Corp., Sr Sub Nt,
12.25%, 4/15/04 1,400 1,512,000 1.3
Calmar Inc., Deb,
11.5%, 8/1/05 1,500 1,530,000 1.3
Envirodyne Industries, Sr Nt,
12%, 6/15/00 1,000 1,062,500 0.9
Plastic Specialties & Technologies Inc., Sr Nt,
11.25%, 12/1/03 1,000 1,000,000 0.9
Portola Packaging Inc., Sr Nt,
10.75%, 10/1/05 1,250 1,312,500 1.1
Printpack Inc., Sr Sub Nt,
10.625%, 8/15/06/2/ 1,000 1,025,000 0.9
------------ ---
8,985,125 7.7
</TABLE>
- --------------------------------------------------------------------------------
2
<PAGE>
USF&G PACHOLDER FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS (CONTINUED)
SEPTEMBER 30, 1996
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT
PAR OF NET
DESCRIPTION (000) VALUE ASSETS
- ----------------------------------------------------------------------
<S> <C> <C> <C>
CLOTHING & TEXTILE -- 3.7%
Ithaca Industries, Sr Sub Nt,
11.125%, 12/15/02/1/,/3/ $ 300 $ 145,500 0.1%
PT Polysindo, Co Guarantee,
11.375%, 6/15/06 1,000 1,046,250 0.9
Synthetic Industries Inc., Deb,
12.75%, 12/1/02 1,500 1,620,000 1.4
Tultex Corp, Sr Nt,
10.625%, 3/15/05 1,000 1,050,000 0.9
US Leather Inc., Sr Nt,
10.25%, 7/31/03 500 405,000 0.4
------------ ---
4,266,750 3.7
CONGLOMERATE -- 1.4%
Interlake Corp., Sr Sub Deb,
12.125%, 3/1/02 1,150 1,196,000 1.0
Siebe Inc., Sr Sec Nt,
11.22%, 1/29/01/4/ 435 434,682 0.4
------------ ---
1,630,682 1.4
COSMETICS/TOILETRIES -- 2.6%
Chattem Inc., Sr Sub Nt,
12.75%, 6/15/04 1,200 1,251,000 1.0
JB Williams Holdings Inc., Sr Nt,
12%, 3/1/04 1,000 1,000,000 0.9
Remington Products, Sr Sub Nt,
11%, 5/15/06/2/ 750 757,500 0.7
------------ ---
3,008,500 2.6
DRUGS -- .6%
Twin Labs, Sr Sub,
10.25%, 5/15/06/2/ 750 753,750 0.6
------------ ---
ECOLOGICAL SERVICES &
EQUIPMENT -- 1.9%
ICF Kaiser International Inc., Sr Sub Nt,
13%, 12/31/03 1,500 1,440,000 1.2
Norcal Waste, Sr Nt,
12.5%, 11/15/05 750 813,750 0.7
------------ ---
2,253,750 1.9
ELECTRONICS/ELECTRIC -- 1.1%
Communications & Power Industries,
Sr Sub Nt, 12%, 8/1/05 1,000 1,087,500 0.9
Plantronics Inc., Sr Nt,
10%, 1/15/01 260 266,500 0.2
------------ ---
1,354,000 1.1
</TABLE>
<TABLE>
<CAPTION>
PERCENT
PAR OF NET
DESCRIPTION (000) VALUE ASSETS
- -------------------------------------------------------------------
<S> <C> <C> <C>
EQUIPMENT LEASING -- 1.1%
Coinmach Corp., Sr Nt,
11.75%, 11/15/05 $1,250 $ 1,331,250 1.1%
------------ ---
FARMING & AGRICULTURE -- 1.7%
Darling International Inc., Sr Sub Nt,
11%, 7/15/00 2,000 1,940,000 1.7
------------ ---
FINANCIAL INTERMEDIARIES -- .9%
Amresco Inc., Sr Nt,
8.75%, 7/1/99 1,000 1,000,000 0.9
------------ ---
FOOD/DRUG RETAILERS -- 4.3%
Bruno's Inc., Sr Sub Nt,
10.5%, 8/1/05 1,500 1,537,500 1.3
Great American Cookie Co., Sr Nt,
10.875%, 1/15/01 650 540,313 0.5
Jitney Jungle Stores, Sr Nt,
12%, 3/1/06 900 955,125 0.8
P&C Food Markets Inc., Deb,
11.5%, 10/15/01 1,000 905,000 0.8
Smith's Food/Drug, Sr Sub,
11.25%, 5/15/07 1,000 1,065,000 0.9
------------ ---
5,002,938 4.3
FOOD SERVICE -- 3.3%
Beatrice Foods Inc., Sr Sub Nt,
12%, 12/1/01/1/,/3/ 2,500 1,100,000 0.9
Carrols Corp., Sr Nt,
11.5%, 8/15/03 1,500 1,563,750 1.3
Host Marriott Travel Plaza, Sr Nt,
9.5%, 5/15/05 1,250 1,250,000 1.1
------------ ---
3,913,750 3.3
FOREST PRODUCTS -- 4.0%
APP International Finance, Gtd Sec Nt,
11.75%, 10/1/05 1,000 1,046,250 0.9
Florida Coast Paper, 1st Mtg,
12.75%, 6/1/03/2/ 1,000 1,080,000 0.9
Repap Wisconsin Inc., Sr Sec Nt,
9.25%, 2/1/02 1,000 1,007,500 0.9
Stone Container Corp., 1st Mtg Bond,
10.75%, 10/1/02 500 521,250 0.4
Stone Container Corp., Sr Nt,
11.875%, 8/1/16/2/ 1,000 1,042,500 0.9
------------ ---
4,697,500 4.0
</TABLE>
- --------------------------------------------------------------------------------
3
<PAGE>
USF&G PACHOLDER FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS (CONTINUED)
SEPTEMBER 30, 1996
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT
PAR OF NET
DESCRIPTION (000) VALUE ASSETS
- -----------------------------------------------------------------
<S> <C> <C> <C>
HEALTH CARE -- 5.0%
Dade International Inc., Sr Sub,
11.125%, 5/1/06/2/ $ 750 $ 802,500 0.7%
Grancare Inc., Sr Sub Nt,
9.375%, 9/15/05 1,250 1,307,813 1.0
Maxxim Medical, Sr Sub,
10.5%, 8/1/06/2/ 1,000 1,035,000 0.9
Ornda Healthcorp, Sr Sub Nt,
11.375%, 8/15/04 1,000 1,115,000 1.0
Prime Succession Acquisitions Corp.,
Sr Sub Nt, 10.75%, 8/15/04/2/ 500 527,500 0.5
Regency Health Services, Sr Sub,
9.875%, 10/15/02 1,000 1,001,250 0.9
------------ ---
5,789,063 5.0
HOME FURNISHING -- .3%
Shop Vac Corp., Sr Sec Nt,
10.625%, 9/1/03/2/ 350 360,063 0.3
------------ ---
HOTEL & CASINOS -- 7.6%
Alliance Gaming, Sr Secd Nt,
12.875%, 6/30/03 900 931,500 0.8
Argosy Gaming, 1st Mtg,
13.25%, 6/1/04/2/ 500 500,000 0.4
Casino Magic, 1st Mtg,
13%, 8/15/03/2/ 900 914,625 0.8
Courtyard by Marriott, Sr Nt,
10.75%, 2/1/08 1,000 1,022,500 0.9
El Dorado Resorts, Sr Sub Nt,
10.5%, 8/15/06/2/ 500 516,250 0.4
GNF Corp (Bally Grand), 1st Mtg,
10.625%, 4/1/03 1,500 1,623,750 1.4
HMC Acquisition Properties, Sr Nt,
9%, 12/15/07 750 712,500 0.6
Majestic Star Casino, Sr Nt,
12.75%, 5/15/03/2/ 500 547,500 0.5
Santa Fe Hotel Inc., 1st Mtg,
11%, 12/15/00 500 335,000 0.3
Showboat Marina, 1st Mtg,
13.5%, 3/15/03 500 540,000 0.5
Trump Atlantic City, 1st Mtg,
11.25%, 5/1/06 1,250 1,234,375 1.0
------------ ---
8,878,000 7.6
</TABLE>
<TABLE>
<CAPTION>
PERCENT
PAR OF NET
DESCRIPTION (000) VALUE ASSETS
- --------------------------------------------------------------------
<S> <C> <C> <C>
INDUSTRIAL EQUIPMENT -- 2.3%
Clark-Schwebel, Sr Nt,
10.5%, 4/15/06 $ 500 $ 517,500 0.4%
Specialty Equipment Inc., Sr Sub Deb,
11.375%, 12/1/03 1,750 1,863,750 1.6
Tokheim Corp., Sr Sub Nt,
11.5%, 8/1/06/2/ 250 263,125 0.3
------------ ---
2,644,375 2.3
INSURANCE -- .8%
Riverside Group Inc., Sub Nt,
13%, 9/30/99/4/ 1,000 900,000 0.8
------------ ---
LEISURE -- 6.6%
Alliance Entertainment, Sr Sub Nt,
11.25%, 7/15/05 1,300 1,222,000 1.0
Doane Products Co., Sr Nt,
10.625%, 3/1/06 1,000 1,028,750 0.9
E&S Holdings Corp., Sr Sub Nt,
10.375%, 10/1/06/2/ 500 510,625 0.4
Guitar Center, Sr Nt,
11%, 7/1/06/2/ 500 520,000 0.4
Hines Horticulture, Sr Sub Nt,
11.75%, 10/15/05 1,500 1,575,000 1.4
Selmer Company, Sr Sub Nt,
11%, 5/15/05 1,500 1,584,375 1.4
United Artists, Sr Nt,
11.5%, 5/1/02 1,250 1,321,875 1.1
------------ ---
7,762,625 6.6
NON-FERROUS METALS -- 2.7%
Easco Corp., Sr Nt,
10%, 3/15/01 1,000 1,001,250 0.9
Magma Copper Co., Sr Sub Nt,
12%, 12/15/01 1,000 1,069,550 0.9
Renco Metals Inc., Sr Nt,
11.5%, 7/1/03 1,000 1,045,000 0.9
------------ ---
3,115,800 2.7
OIL & GAS -- 3.9%
Giant Industries Inc., Sr Sub Nt,
9.75%, 11/15/03 1,000 1,007,500 0.9
KCS Energy Inc., Sr Nt,
11%, 1/15/03 500 541,250 0.5
Petro PSC Properties, Sr Nt,
12.5%, 6/1/02 1,500 1,500,000 1.2
Transamerica Refining, 1st Mtg,
16.5%, 2/15/02 650 620,750 0.5
United Refining Corp., Sr Nt w/warrant,
13.5%, 12/31/03 1,000 900,000 0.8
------------ ---
4,569,500 3.9
</TABLE>
- --------------------------------------------------------------------------------
4
<PAGE>
USF&G PACHOLDER FUND, INC.
- -------------------------------------------------------------------------------
STATEMENT OF NET ASSETS (CONCLUDED)
SEPTEMBER 30, 1996
(UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT
PAR OF NET
DESCRIPTION (000) VALUE ASSETS
- ----------------------------------------------------------------
<S> <C> <C> <C>
PUBLISHING -- .4%
Adams Outdoor Advertising, Sr Nt,
10.75%, 3/15/06 $ 500 $ 517,500 0.4%
------------ ----
RETAILERS -- .9%
Herff Jones Inc., Sr Sub Nt,
11%, 8/15/05 1,000 1,050,000 0.9
------------ ----
STEEL -- 2.1%
Algoma Steel, 1st Mtg,
12.375%, 7/15/05 1,000 1,040,000 0.9
Gulf States Steel, 1st Mtg,
13.5%, 4/15/03 500 447,500 0.3
NS Group Inc., Sr Nt,
13.5%, 7/15/03 1,000 1,000,000 0.9
------------ ----
2,487,500 2.1
TRANSPORTATION -- 3.1%
Moran Transport Co., 1st Mtg Nt,
11.75%, 7/15/04 1,000 1,047,500 0.9
Trism Inc., Sr Sub Nt,
10.75%, 12/15/00 1,400 1,337,000 1.1
Teekay Shipping, Sr Sec Nt,
9.625%, 7/15/03 1,250 1,287,500 1.1
------------ ----
3,672,000 3.1
TELECOMMUNICATIONS/CELLULAR
COMMUNICATION -- 2.9%
Brooks Fiber Properties, Sr Dis Nt,
0%, 3/1/06 500 307,500 0.3
Metrocall Inc., Sr Sub Nt,
10.375%, 10/1/07 1,250 1,056,250 0.9
Nextlink Communications, Sr Nt,
12.5%, 4/15/06 1,000 1,035,000 0.9
Teleport Communications, Sr Nt,
9.875%, 7/1/06 500 512,500 0.4
Vanguard Cellular, Deb,
9.375%, 4/15/06 500 496,250 0.4
------------ ----
3,407,500 2.9
------------ ----
TOTAL CORPORATE DEBT SECURITIES
(amortized cost $108,324,706) 110,667,490 94.7
------------ ----
</TABLE>
<TABLE>
<CAPTION>
SHARES/ PERCENT
PAR OF NET
DESCRIPTION (000) VALUE ASSETS
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
EQUITY INVESTMENTS -- .2%
Data Documents, Common Stock, 7/15/02/1/ 22,596 $ 237,258 0.2%
Gulf States Steel, Warrants, 4/15/03/1/ 500 250 0.0
ICF Kaiser International, Warrants, 12/31/98/1/ 7,200 2,700 0.0
Sabreliner Corp., Warrants 4/15/03/1/ 500 2,500 0.0
San Jacinto Holdings, Common Stock/1/ 2,246 8,985 0.0
------------ -----
TOTAL EQUITY INVESTMENTS
(cost $2,535) 251,693 0.2
------------ -----
COMMERCIAL PAPER -- 4.1%
American General Finance,
5%, 10/2/96 $1,000 999,861 1.0
American General Finance,
5.33%, 10/9/96 500 499,408 0.4
Ford Motor Credit, 5.42%, 10/2/96 600 599,910 0.5
Ford Motor Credit, 5.26%, 10/4/96 500 499,781 0.4
Ford Motor Credit, 5.32%, 10/9/96 600 599,291 0.5
General Electric Capital Corp.,
5.25%, 10/4/96 500 499,781 0.4
General Electric Capital Corp.,
5.33%, 10/9/96 500 499,408 0.4
General Electric Capital Corp.,
5.42%, 10/9/96 600 599,277 0.5
------------ -----
TOTAL COMMERCIAL PAPER
(at amortized cost) 4,796,716 4.1
------------ -----
TOTAL INVESTMENTS
(cost $113,123,957) $115,715,899 99.0
OTHER ASSETS IN EXCESS OF LIABILITIES 1,131,795 1.0
------------ -----
NET ASSETS $116,847,694 100.0%
LESS: OUTSTANDING PREFERRED STOCK (33,000,000)
------------
NET ASSETS APPLICABLE TO 4,980,145 SHARES OF COMMON
STOCK OUTSTANDING $ 83,847,694
============
NET ASSET VALUE PER COMMON SHARE
($83,847,694 / 4,980,145) $16.84
======
- ------------------------------------------------------------------------------
</TABLE>
/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 $12,984,063 or 11.1% of net assets.
/3/ Security is in default.
/4/ Board valued security. These securities amounted to $1,334,682 or 1.1% of
net assets.
- -------------------------------------------------------------------------------
5
<PAGE>
USF&G PACHOLDER FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Dividend Reinvestment Plan
--------------------------
The Dividend Reinvestment Plan offers you an automatic way to reinvest your
dividends and capital gains distributions in shares of the Fund. For an
enrollment form and detailed information about the Plan, please contact Fifth
Third Bank Corporate Trust Services, 38 Fountain Square Plaza MD-1090F5,
Cincinnati, Ohio 45263, (800) 837-2755.
-------------
This report is sent to the shareholders of USF&G Pacholder Fund, Inc. for their
information. 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.
- --------------------------------------------------------------------------------
6
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
<PAGE>
- --------------------------------------------------------------------------------
USF&G
PACHOLDER FUND, INC.
THIRD QUARTER REPORT
SEPTEMBER 30, 1996
- --------------------------------------------------------------------------------
USF&G
PACHOLDER FUND, INC.
- --------------------------------------------------------------------------------
DIRECTORS AND OFFICERS
Asher O. Pacholder John C. Sweeney
Chairman Director
Anthony L. Longi, Jr. John F. Williamson
President Director
William J. Morgan George D. Woodard
Director and Treasurer Director
James P. Shanahan, Jr. James E. Gibson
Director and Secretary Senior Vice President
Daniel A. Grant Mark H. Prenger
Director Assistant Treasurer
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, high risk fixed-income securities
of domestic companies.
EXECUTIVE OFFICES
USF&G Pacholder Fund, Inc.
Bank One Towers
8044 Montgomery Road
Suite 382
Cincinnati, Ohio 45236
INVESTMENT ADVISOR
Pacholder & Company
ADMINISTRATOR
Kenwood Administrative Management, L.P.
CUSTODIAN
Star Bank, N.A.
TRANSFER AGENT
Fifth Third Bank Corporate Trust Services
LEGAL COUNSEL
Piper & Marbury L.L.P.
INDEPENDENT AUDITORS
Deloitte & Touche LLP
ACCOUNTING SERVICES AGENT
Pacholder Associates, Inc.
