Notes to Financial Statements
1. SIGNIFICANT ACCOUNTING POLICIES -- Pacholder Fund, Inc. (the "Fund") is a closed-end,
diversified management investment company registered under the Investment Company Act of 1940. The Fund
seeks a high level of total return through current income and capital appreciation by investing primarily in high
yield, lower rated fixed-income securities of domestic companies. The Fund was incorporated under the laws of
the State of Maryland in August, 1988.
The following is a summary of significant accounting policies followed by the Fund in the preparation of its
A. SECURITY VALUATIONS -- Portfolio securities are priced at the bid side of the market by an independent
pricing service. Restricted securities, portfo- lio securities not priced by the independent pricing service and other
as- sets are valued at fair value as determined under procedures established by the Board of Directors. At June
30, 1999, there were board valued securities of $60,000, or less than 0.1% of net assets as of such date. Short-
term ob- ligations with remaining maturities of 60 days or less at the date of pur- chase are valued at amortized
B. FEDERAL TAXES -- It is the Fund's policy to make sufficient distributions to shareholders of net investment
income and net realized capital gains to comply with the requirements of the Internal Revenue Code applicable to
reg- ulated investment companies. A provision of $32,828 for federal excise tax was required at December 31,
1998 because the Fund distributed less than 98% of net investment income, although the Fund did comply with
the Internal Revenue Code's requirements applicable to investment companies.
The Fund intends to continue to qualify as a regulated investment company by complying with the appropriate
provisions of the Internal Revenue Code of 1986, as amended.
C. SECURITIES TRANSACTIONS -- Securities transactions are accounted for on the date the securities are
purchased or sold (trade date). Realized gai