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PBGC Chooses Pacholder Associates as Special Situations Manager

September 15, 1999

The Pension Benefit Guaranty Corporation (PBGC) has selected Pacholder Associates, Inc., Cincinnati, as special situations manager for the agency's portfolio of illiquid assets.

In a competitive award, Pacholder received a one-year contract, renewable annually for seven years. Pacholder currently is completing a five-year contract to value and manage possible illiquid asset holdings including, for example, real estate, structured debt and private securities. This award continues that mandate.

PBGC may receive illiquid assets when it becomes trustee of insolvent pension plans. Such holdings represent around one percent of the agency's $18 billion in assets available for investment.

A leading financial advisory and management consulting firm, Pacholder assists clients, including companies and governmental institutions, in realizing value from their illiquid asset holdings.

PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974 to guarantee payment of basic pension benefits earned by some 42 million American workers and retirees participating in more than 44,000 private-sector defined benefit pension plans. The agency receives no funds from general tax revenues. Operations are financed largely by insurance premiums paid by companies that sponsor pension plans and investment returns.

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PBGC No. 99-34