Banc One Investment Advisors Corporation Forms Strategic Alliance with High Yield Manager Pacholder Associates, Inc.
Under the terms of the agreement, which is subject to regulatory notification, Banc One Investment Advisors and Pacholder Associates, Inc. will form a company called Banc One High Yield Partners, LLC, which will be majority owned by Banc One Investment Advisors. The new firm will act to advise high yield asset s for institutional clients and will subadvise The One Group High Yield Bond Fund, to be introduced later this year in The One Group Family of Mutual Funds, BANC ONE's proprietary mutual fund family.
"This alliance adds an important asset management specialty to our broad investment management capability. It will provide us with opportunities to not only enhance existing relationships but also attract new asset management clients," said David J. Kundert, President and Chief Executive Officer of Banc One Investment Advisors. "Pacholder Associates is a highly regarded manager of high yield fixed income assets and their investment approach is very compatible with our management philosophy. We view this strategic alliance as another important step we are taking to expand our services to the benefit of our current and future clients."
This transaction is a significant step for our organization's strategic growth," said William J. Morgan, President of Pacholder Associates, Inc. "It enables us to use our prove n high yield expertise to manage an ever-increasing base of assets. The managers of Pacholder Associates, Inc. operate under guiding principles that are very similar to those of Banc One Investment Advisors. We are pleased to be associated with the high caliber investment professionals of Banc One."
Pacholder Associates, Inc. was formed in 1983 to specialize in high yield fixed income securities. Currently, Pacholder Associates manages in excess of $750 million, primarily for institutional clients, including, through Pacholder & Company, the USF&G Pacholder Fund, Inc., a closed-end, high yield bond fund with $175 million in assets as of March 31, 1998.
In a related transaction, Banc One Investment Advisors is purchasing a minority interest in Pacholder & Company, LLC, a newly formed investment advisor, subject to regulatory clearance. An advisory agreement between Pacholder & Company, LLC and the USF&G Pacholder Fund, Inc. has been approved by the USF&G Pacholder Fund's Board of Directors and is being s ubmitted to the USF&G Pacholder Fund, Inc.'s shareholders for approval at the upcoming shareholder meeting.
BANC ONE CORPORATION had managed total assets of $146.7 billion, total assets of $116.3 billion, and common equity of $10.4 billion at March 31, 1998. BANC ONE operates over 1,300 banking centers in 12 states. BANC ONE also owns several additional corporations that engage in a full range of financial services. Information about BANC ONE's financial results and its products and services can be accessed on the Internet at:
http://www.bankone.com; through InvestQuest at: http://www.investquest.com; or through Fax-on-demand at: 614-844-3860.