<PAGE> 1
- ----------------------------------------------------------
- ---------------------------------------------------------
INVESTMENT ADVISER AND DISTRIBUTOR
The Ohio Company
155 East Broad Street
Columbus, Ohio 43215
TRANSFER AGENT AND DIVIDEND PAYING AGENT
Cardinal Management Corp.
215 East Capital Street
Columbus, Ohio 43215
CUSTODIAN
The Fifth Third Bank
38 Fountain Square Plaza
Cincinnati, Ohio 45263
LEGAL COUNSEL
Baker & Hostetler
65 East State Street
Columbus, Ohio 43215
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
Two Nationwide Plaza
Columbus, Ohio 43215
------------------------
This report has been prepared for the information of shareholders of The
Cardinal Fund Inc. and is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective Prospectus.
- ---------------------------------------------------------
- ----------------------------------------------------------
- ----------------------------------------------------------
- ---------------------------------------------------------
CARDINAL FUNDS [LOGO]
THE
CARDINAL
FUND INC.
----------------------------------
SEMI-ANNUAL REPORT
----------------------------------
MARCH 31, 1995
THE OHIO COMPANY
- ---------------------------------------------------------
- ----------------------------------------------------------
<PAGE> 2
DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------
Each day brings new challenges, and the past six months have been no exception.
During the first half of our fiscal year, we witnessed the stabilization of
interest rates, improved corporate profitability, record highs for the stock
market and moderate inflation. Our outlook for the next six months calls for a
continuation of this favorable investment environment.
Against this backdrop, assets invested in mutual funds continued to rise.
According to recent industry studies, about one-fourth of Americans own mutual
funds today. Most cite investing for retirement and college education as their
primary goals. Over eight out of ten mutual fund investors rely upon a financial
advisor for mutual fund advice.
As a shareholder of The Cardinal Fund, Inc., your investment seeks long-term
growth of capital and income through selective participation in the long-term
progress of American businesses and industries. We remain dedicated to achieving
these objectives and will continue to work hard on your behalf.
The challenges The Cardinal Fund, Inc. faces today seem more exciting than ever.
We have a sound operations staff, a strong portfolio management team, dedicated
employees and an excellent shareholder base. By maintaining our focus on
providing consistent performance and quality service, we hope to meet your
investment needs in the years to come.
Thank you for your investment in The Cardinal Fund, Inc.
/s/ Walter R. Chambers
Walter R. Chambers
Chairman
/s/ Frank W. Siegel
Frank W. Siegel
President
1
<PAGE> 3
- --------------------------------------------------------------------------------
MESSAGE FROM THE FUND'S PORTFOLIO MANAGER
On behalf of The Cardinal Fund, Inc. Directors and Officers, we are pleased to
present our March 31, 1995 Semi-Annual Report which contains the portfolio of
investments and financial statements.
The Cardinal Fund, Inc. increased 2.6% over the past six months. This is in
comparison to the 9.7% return for the Standard and Poor's 500 Index (an
annualized market index). While the Fund out-performed the S & P 500 during
fiscal year ending September 30, 1994, performance over the past six months
slipped due to the Fund's exposure to chemical, basic industry, and interest
rate sensitive issues. As 1994 closed, investors feared the economy was going to
slow considerably and the Fed was not through raising interest rates. These
macro-economic views combined to depress most stocks, but especially
economically sensitive issues such as Dow Chemical and General Electric as well
as bank, insurance and utility stocks.
As the first quarter of calendar 1995 unfolded, investors realized the economy
was not falling apart and that quite possibly the end was near for climbing
interest rates. Both stock and bond prices have rallied since December 31, 1994.
Those same sectors and stocks which were hurt the most during the final months
of 1994 have participated in the recent stock market rally. While consumer
non-durable and technology issues have definitely lead the market, basic
industry (paper and chemical for example) and interest rate sensitive stocks
have generated positive returns. The Fund's shares advanced 7.1% during the
final three months of the first half of fiscal 1995.
During the past six month period we have taken advantage of both market strength
and weakness. During October and November of 1994, when stock prices were in a
general downward trail we added to our bank and basic industry holdings and
established new positions. Fisher Scientific, GATX Corporation, Intel, J C
Penney, Sprint, and Union Camp were all added to the portfolio. Since calendar
year-end, we have also purchased Anheuser Busch, Tektronics, and Marsh McLennan
for the portfolio.
A few of the liquidations during the first six months were BB&T Financial (which
merged with Southern National Bank), Curtice Burns (due to a buy out), Humana
and Motorola (based on valuation).
As we look forward to the second half of fiscal 1995, we are encouraged by
several factors:
- The economy appears to have durability due to strong export growth and
healthy capital expenditures.
- Interest rates do not appear to be burdensomely high. Inflation, which
may increase slightly, should not prove ominous.
- The U.S. economy and markets both are proving to be world wide leaders.
The competitiveness of U.S. businesses, we believe, is long-lasting, and
the U.S. market place is as attractive as any of the industrial nations
based on recent valuations.
- Performance of The Cardinal Fund, Inc. shares have improved as calendar
year 1995 has unfolded.
While the Fund's lagging investment results of the recent past have not met our
expectations, we are dedicated to achieving long term growth of capital and
income.
2
<PAGE> 4
- --------------------------------------------------------------------------------
As of March 31, 1995, the Fund continued to be in line with its stated
disciplines.
<TABLE>
<CAPTION>
THE CARDINAL FUND, INC.* S&P 500
------------------------ -------
<S> <C> <C>
Earnings per Share** 7.5% 6.7%
Dividends per Share** 5.9% 2.1%
Price/Latest 12 Month Earnings 14.7X 16.6X
Dividend Yield 3.4% 2.7%
</TABLE>
* Dollar-weighted average for portfolio.
** Compounded annual rate for latest five years.
We believe the market will recognize both the value and growth potential of the
assets of the Fund. We appreciate your patience and continued confidence.
/s/ John L. Schlater
John L. Schlater
Chief Investment Officer
As portfolio manager for The Cardinal Fund, Inc., John L. Schlater is primarily
responsible for the day-to-day management of the Fund's portfolio. Mr. Schlater
has 17 years of investment management experience and has served as portfolio
manager for The Cardinal Fund, Inc. since 1989.
3
<PAGE> 5
THE CARDINAL FUND INC.
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (MARKET VALUE IN THOUSANDS)
- --------------------------------------------------------------------------------
MARCH 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/ MARKET
SHARES VALUE
------- --------
<S> <C> <C>
COMMON STOCKS 94.26%
AEROSPACE/DEFENSE 2.80%
Harris Corporation........................................... 75,200 $ 3,600
Raytheon Company............................................. 40,000 2,915
--------
6,515
--------
APPAREL/RETAILERS 2.13%
Jacobson Stores Incorporated................................. 114,100 1,255
May Department Stores........................................ 100,000 3,700
--------
4,955
--------
AUTOMOTIVE MANUFACTURING 1.74%
Ford Motor Company........................................... 150,000 4,050
--------
AUTOMOTIVE PARTS 3.30%
Amcast Industries Corporation................................ 118,600 2,372
Cooper Tire & Rubber Company................................. 120,200 3,411
Simpson Industries........................................... 190,000 1,876
--------
7,659
--------
BEVERAGES 0.63%
Anheuser Busch Companies Inc................................. 25,000 1,466
--------
CENTRAL STATE BANKS 5.99%
Banc One Corporation......................................... 130,500 3,719
Huntington Bancshares Incorporated........................... 217,855 3,976
KeyCorp...................................................... 220,000 6,215
--------
13,910
--------
CHEMICALS/COMMODITY 5.57%
Akzo Nobel N.V............................................... 110,214 6,007
Dow Chemical Company......................................... 95,000 6,935
--------
12,942
--------
CLOTHING/FABRICS 1.01%
Oxford Industries Inc........................................ 121,900 2,347
--------
COMPUTER/INFORMATION 1.96%
Hewlett Packard Company...................................... 13,000 1,565
Tektronix Incorporated....................................... 75,000 3,000
--------
4,565
--------
</TABLE>
(continued)
4
<PAGE> 6
THE CARDINAL FUND INC.
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
MARCH 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/ MARKET
SHARES VALUE
------- --------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
CONGLOMERATES 9.26%
Hanson PLC................................................... 270,000 $ 5,096
Johnson Controls Incorporated................................ 100,000 5,088
Tenneco Incorporated......................................... 150,500 7,092
Textron Incorporated......................................... 75,000 4,247
--------
21,523
--------
CONSUMER SERVICES 0.47%
Scotts Company*.............................................. 60,000 1,099
--------
CONTAINERS/PACKAGING 0.44%
Liqui-Box Corporation........................................ 30,390 1,018
--------
DIVERSIFIED FINANCIAL SERVICES 1.77%
Beneficial Corporation....................................... 105,000 4,121
--------
DIVERSIFIED INDUSTRIAL 4.15%
Minnesota Mining & Manufacturing Company..................... 90,000 5,231
Myers Industries Incorporated................................ 165,275 2,335
Quixote Corporation.......................................... 90,300 835
Raven Industries Incorporated................................ 60,050 1,231
--------
9,632
--------
ELECTRIC 1.80%
Northern States Power Company................................ 95,000 4,180
--------
ELECTRICAL COMPONENTS 6.19%
Asea Brown Boveri Incorporated............................... 55,300 4,279
General Electric Company..................................... 151,400 8,195
Houston Industries Incorporated.............................. 50,000 1,906
--------
14,380
--------
FOODS 1.91%
Goodmark Foods Incorporated.................................. 174,000 2,719
Super Foods Services Incorporated............................ 160,800 1,729
--------
4,448
--------
FOREST PRODUCTS 0.99%
Potlatch Corporation......................................... 54,500 2,296
--------
GAS 0.79%
Williams Companies Incorporated.............................. 60,000 1,838
--------
INDUSTRIAL COMMERCIAL SERVICES 1.35%
Graphics Industries Incorporated............................. 123,500 1,112
New England Business Services Incorporated................... 110,500 2,030
--------
3,142
--------
</TABLE>
* Non-income producing
(continued)
5
<PAGE> 7
THE CARDINAL FUND INC.
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
MARCH 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/ MARKET
SHARES VALUE
------- --------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
INSURANCE 1.99%
Equitable of Iowa Companies.................................. 100,300 $ 3,398
Marsh & McLennan Companies Incorporated...................... 15,000 1,232
--------
4,630
--------
INTEGRATED OILS 9.61%
Mobil Corporation............................................ 85,000 7,873
Royal Dutch Petroleum Company................................ 65,000 7,800
Texaco Incorporated.......................................... 100,000 6,650
--------
22,323
--------
MEDICAL SUPPLIES 1.15%
Abbott Laboratories.......................................... 50,000 1,781
Fisher Scientific Int'l...................................... 30,000 893
--------
2,674
--------
OTHER NONFERROUS METALS 2.36%
Worthington Industries Incorporated.......................... 275,776 5,481
--------
PAPER 3.20%
Federal Paper Board Company.................................. 114,800 3,272
Kimberly Clark Corporation................................... 50,000 2,600
Union Camp Corporation....................................... 30,000 1,556
--------
7,428
--------
PHARMACEUTICALS 4.95%
American Home Products....................................... 86,000 6,128
Bristol Myers-Squibb Company................................. 85,480 5,385
--------
11,513
--------
PROPERTY/CASUALTY 3.64%
Cincinnati Financial Corporation............................. 162,750 8,463
--------
SEMICONDUCTORS 0.66%
Intel Corporation............................................ 18,000 1,528
--------
SPECIALTY/RETAILERS 3.54%
J.C. Penney Company Incorporated............................. 55,000 2,468
The Limited Incorporated..................................... 200,000 4,625
Wolohan Lumber Company....................................... 74,000 1,129
--------
8,222
--------
</TABLE>
(continued)
6
<PAGE> 8
THE CARDINAL FUND INC.
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
MARCH 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/ MARKET
SHARES VALUE
------- --------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
TELEPHONE 4.28%
GTE Corporation.............................................. 189,716 $ 6,308
Sprint Corporation........................................... 120,000 3,630
--------
9,938
--------
TOBACCO 3.23%
Philip Morris Companies Incorporated......................... 115,000 7,504
--------
TRANSPORTATION 1.39%
GATX Corporation............................................. 72,200 3,235
--------
REPURCHASE AGREEMENTS, FULLY COLLATERALIZED BY U.S.
GOVERNMENT OBLIGATIONS 5.16%
Daiwa Securities Inc., 5.95%, dated 3/31/95, due 4/04/95..... 7,000 7,000
Fifth Third Bank, 6.15%, dated 3/31/95, due 4/03/95.......... 5,000 5,000
--------
TOTAL REPURCHASE AGREEMENTS (COST $12,000).............. 12,000
--------
TOTAL INVESTMENTS (COST $183,250) 99.42%................ $231,021
=========
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 9
THE CARDINAL FUND INC.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
- --------------------------------------------------------------------------------
MARCH 31, 1995 (UNAUDITED)
ASSETS
<TABLE>
<S> <C>
Investments in securities, at value (cost $183,250)................................... $231,021
Cash.................................................................................. 458
Dividends and interest receivable..................................................... 671
Receivable for Fund shares sold....................................................... 79
Receivable for investment securities sold............................................. 1,052
Other assets.......................................................................... 114
--------
Total assets................................................................ 233,395
--------
LIABILITIES
Payable for Fund shares redeemed...................................................... 629
Payable for investment securities purchased........................................... 18
Accrued investment management and transfer agent fees (note 3)........................ 328
Other accrued expenses................................................................ 54
--------
Total liabilities........................................................... 1,029
--------
COMMITMENTS AND CONTINGENCIES (NOTE 4)
NET ASSETS -- applicable to 19,392,635 outstanding no par value shares of beneficial
interest (authorized 30,000,000).................................................... $232,366
=========
NET ASSET VALUE PER SHARE............................................................. $ 11.98
=========
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 10
THE CARDINAL FUND INC.
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SIX MONTHS ENDED MARCH 31, 1995 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends.............................................................................. $ 3,521
Interest............................................................................... 478
-------
Total income................................................................. 3,999
-------
EXPENSES:
Investment management fees (note 3).................................................... 582
Transfer agent fees and expenses (note 3).............................................. 117
-------
Total affiliated expenses......................................................... 699
-------
Custodian fees......................................................................... 10
Professional fees...................................................................... 30
Reports to shareholders................................................................ 26
Directors' fees........................................................................ 12
Other expenses......................................................................... 35
-------
Total non-affiliated expenses................................................ 113
-------
Total expenses............................................................... 812
-------
Net investment income........................................................ 3,187
-------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (NOTE 2):
Net realized gain from security transactions........................................... 6,277
Decrease in unrealized gain on investments............................................. (3,011)
-------
Net realized gain and decrease in unrealized gain on investments............. 3,266
-------
Net increase in net assets from operations................................... $ 6,453
========
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 11
THE CARDINAL FUND INC.
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED MARCH 31, 1995 (UNAUDITED)
AND FOR THE YEAR ENDED SEPTEMBER 30, 1994
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
1995 1994
------------- -------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income........................................... $ 3,187 $ 6,351
Net realized gain from security transactions.................... 6,277 17,362
Decrease in unrealized gain on investments...................... (3,011) (14,821)
------------- -------------
Net increase in net assets from operations.................... 6,453 8,892
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Distributions of net investment income ($.175 and $.325 per
share, respectively).......................................... (3,389) (6,601)
Distribution of net realized gains from security transactions
($.825 and $.278 per share, respectively)..................... (15,750) (6,006)
------------- -------------
Total distributions to shareholders........................... (19,139) (12,607)
------------- -------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5):
Proceeds from sale of Fund shares............................... 4,345 14,876
Net asset value of Fund shares issued in connection with
reinvestment of distributions to shareholders................. 17,948 11,831
------------- -------------
22,293 26,707
Cost of Fund shares redeemed.................................... (23,823) (58,535)
------------- -------------
Decrease in net assets derived from capital share
transactions.................................................. (1,530) (31,828)
------------- -------------
Net decrease in net assets...................................... (14,216) (35,543)
NET ASSETS -- beginning of period............................... 246,582 282,125
------------- -------------
NET ASSETS -- end of period (undistributed (over distributed)
net investment income of ($183) and $20, respectively)........ $ 232,366 $ 246,582
============== ==============
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 12
THE CARDINAL FUND INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1995 (UNAUDITED)
(1) -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Cardinal Fund Inc. (the "Fund") is registered under the Investment Company
Act of 1940, as a diversified, open-end management investment company. The
following is a summary of significant accounting policies followed by the Fund
in the preparation of its financial statements. The policies are in conformity
with generally accepted accounting principles for investment companies.
Security Valuation--Investments listed or traded on a national securities
exchange are valued at the last sale price or, if there has been no recent sale,
at the last bid price. Investments traded in the over-the- counter market are
valued at the last sale price. If no quotations are available, portfolio
securities are valued in good faith by the Board of Directors to reflect their
fair value.
Security Transactions and Investment Income--Security transactions are accounted
for on the trade date and dividend income is recorded on the ex-dividend date.
Interest income is recorded on the accrual basis. In determining the net
realized gain or loss on securities sold, the cost of the securities has been
determined on the first in, first out (FIFO) cost basis. It is the Fund's policy
for its Custodian, or a third-party bank, to take possession of all securities
pledged as collateral for repurchase agreements and monitor the market value of
the collateral to ensure that it remains sufficient to cover the repurchase
agreements.
Distributions to Shareholders--Distributions and dividends are recorded by the
Fund on the record date. Income dividends are declared quarterly and any capital
gain distribution is declared annually.
Federal Income Taxes--No provision has been made for Federal taxes on the Fund's
income, since it is the policy of the Fund to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to make
sufficient distributions of taxable income and capital gains within the required
time to relieve it from all, or substantially all, Federal income taxes.
(2) -- PURCHASES AND SALES OF SECURITIES
The cost of purchases and proceeds from sales of investment securities during
the six months ended March 31, 1995 aggregated $27,536,066 and $40,394,301,
respectively.
During the six months ended March 31, 1995 the Fund realized on a FIFO cost
basis a net capital gain of $6,276,863 and $6,279,583 for book and tax purposes,
respectively.
At March 31, 1995, the book cost of investment securities was $183,249,956 and
the tax cost was $183,109,033. The difference between book and tax cost is
attributable to securities acquired in the 1975 acquisition of the Ohio Capital
Fund, Inc. and remaining in the Fund's portfolio with a book cost of $233,414
and a tax cost of $92,491.
(continued)
11
<PAGE> 13
THE CARDINAL FUND INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
MARCH 31, 1995 (UNAUDITED)
As of March 31, 1995, for tax purposes, gross unrealized gains and gross
unrealized losses on investment securities were $52,826,377 and $5,055,134
respectively; resulting in a net unrealized gain of $47,771,243.
(3) -- TRANSACTIONS WITH AFFILIATES
As investment manager for the Fund, the Ohio Company (the Adviser), with whom
certain officers and directors of the Fund are affiliated is allowed an annual
fee of 0.5% of the average daily net assets of the Fund. For the six months
ended the Fund paid or accrued $582,100 for investment management services.
The Adviser has agreed that if the aggregate expenses of the Fund, as defined,
for any fiscal year exceed the expense limitation of any state having
jurisdiction over the Fund, the Adviser will refund to the Fund, or otherwise
bear, such excess. This limitation did not affect the calculation of the
management fee during the six months ended March 31, 1995. In addition to
providing management and advisory services, The Ohio Company pays the
compensation of all officers and employees of the Fund and provides office space
and certain related facilities required by the Fund.
The Ohio Company, acting as the General Distributor and Dealer, reported to the
Fund that it received commissions after discounts to dealers from the sale of
shares of the Fund of $99,363 for the six months ended March 31, 1995. Cardinal
Management Corp., a wholly-owned subsidiary of The Ohio Company, provides
transfer agent services to the Fund. Transfer agent service fees are based on a
monthly charge per shareholder account plus out-of-pocket expenses. For the six
months ended March 31, 1995 the Fund paid or accrued $117,449 for transfer agent
services provided by Cardinal Management Corp.
(4) -- COMMITMENTS AND CONTINGENCIES
The Fund has an available $5,000,000 line of credit with its custodian, Fifth
Third Bank, which was unused at March 31, 1995. When used, borrowings under this
arrangement are secured by portfolio securities and can be used only for short
term needs of the Fund. No compensating balances are required and the
arrangement bears an interest rate of 106% of the custodian's prime lending
rate.
Fidelity Bond and Errors and Omissions insurance coverage for the Fund and its
officers and directors has been obtained through ICI Mutual Insurance Company
(ICI Mutual), an industry-sponsored mutual insurance company. Included in other
assets of the Fund is a deposit of $28,588, for the initial capital of ICI
Mutual. The Fund is also committed to provide $85,764 should ICI Mutual
experience the need for additional capital contributions.
Included in other assets is a $56,000 certificate of deposit which
collateralizes a standby letter of credit in connection with the Fund's
participation in ICI Mutual. This amount is not available for investment.
(continued)
12
<PAGE> 14
THE CARDINAL FUND INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
(5) -- CAPITAL STOCK
At March 31, 1995, there were 30,000,000 shares of no par value capital stock
authorized and the capital amounts were as follows:
<TABLE>
<S> <C>
Paid in capital................................................................... $176,938,924
Accumulated net realized gains on investments..................................... 7,838,449
Unrealized gain on investments.................................................... 47,771,243
Over distributed net investment income............................................ (182,833)
------------
Net Assets........................................................................ $232,365,783
=============
</TABLE>
MARCH 31, 1995 (UNAUDITED)
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
1995 1994
------------- -------------
<S> <C> <C>
Shares sold..................................................... 366,558 1,161,378
Shares issued in connection with reinvestment of distributions
to shareholders............................................... 1,599,670 936,172
Shares repurchased.............................................. (1,946,814) (4,580,169)
------------- -------------
Net increase (decrease)......................................... 19,414 (2,482,619)
Shares outstanding:
Beginning of period............................................. 19,373,221 21,855,840
------------- -------------
End of period................................................... 19,392,635 19,373,221
============== ==============
</TABLE>
See accompanying notes to financial statements.
13
<PAGE> 15
THE CARDINAL FUND INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for each share of capital stock outstanding throughout each
period:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEARS ENDED SEPTEMBER 30,
MARCH 31, -------------------------------------------------------------
1995 1994 1993 1992 1991 1990
---------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning..................... $ 12.73 $ 12.91 $ 12.95 $ 11.88 $ 9.28 $ 11.75
---------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income........................ 0.16 0.31 0.32 0.35 0.35 0.42
Net realized and unrealized gains
(losses) on investments.................. 0.10 0.12 0.55 1.37 2.70 (1.87)
---------- -------- -------- -------- -------- --------
Total from investment operations............... 0.26 0.43 0.87 1.72 3.05 (1.45)
---------- -------- -------- -------- -------- --------
Less distributions:
Dividends.................................... (0.18) (0.33) (0.29) (0.36) (0.38) (0.53)
Capital gain distribution.................... (0.83) (0.28) (0.62) (0.29) (0.07) (0.49)
---------- -------- -------- -------- -------- --------
Total distributions............................ (1.01) (0.61) (0.91) (0.65) (0.45) (1.02)
---------- -------- -------- -------- -------- --------
Net Asset Value, ending........................ $ 11.98 $ 12.73 $ 12.91 $ 12.95 $ 11.88 $ 9.28
========== ========= ========= ========= ========= =========
Ratios/Supplemental Data:
Total return................................... 2.56% 3.38% 6.98% 15.05% 33.54% (13.42%)
========== ========= ========= ========= ========= =========
Net assets, ending (000)....................... $232,366 $246,581 $282,125 $261,392 $221,428 $168,184
========== ========= ========= ========= ========= =========
Ratio of expenses to average net assets........ 0.69% 0.72% 0.68% 0.67% 0.67% 0.74%
========== ========= ========= ========= ========= =========
Ratio of net investment income to average net
assets....................................... 2.73% 2.40% 2.46% 2.83% 3.15% 3.98%
========== ========= ========= ========= ========= =========
Portfolio turnover rate........................ 0.96% 23.20% 11.11% 6.22% 33.27% 27.10%
========== ========= ========= ========= ========= =========
</TABLE>
See accompanying notes to financial statements.
14
<PAGE> 16
THE CARDINAL FUND INC.
- --------------------------------------------------------------------------------
TEN-YEAR DISTRIBUTION HISTORY
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PER SHARE DISTRIBUTION
NET ASSET -------------------------
PERIOD VALUE PER FROM FROM REALIZED
ENDING SHARE INCOME CAPITAL GAINS
- ----------------------------------------------------- --------- ------ -------------
<S> <C> <C> <C>
3/31/95.............................................. $ 11.98 $0.18 $0.83
9/30/94.............................................. 12.73 0.33 0.28
9/30/93.............................................. 12.91 0.29 0.62
9/30/92.............................................. 12.95 0.36 0.29
9/30/91.............................................. 11.88 0.38 0.07
9/30/90.............................................. 9.28 0.53 0.49
9/30/89.............................................. 11.75 0.39 0.38
9/30/88.............................................. 10.38 0.47 0.43
9/30/87.............................................. 11.73 0.28 0.72
9/30/86.............................................. 10.35 0.23 0.56
9/30/85.............................................. 8.55 0.24 0.51
9/30/84.............................................. 7.95 0.24 0.40
</TABLE>
15
<PAGE> 17
[LOGO]
THE CARDINAL FUND INC.
CARDINAL GOVERNMENT SECURITIES TRUST
CARDINAL TAX EXEMPT MONEY TRUST
CARDINAL GOVERNMENT OBLIGATIONS FUND
CARDINAL BALANCED FUND
CARDINAL AGGRESSIVE GROWTH FUND
155 E. Broad St. Columbus, Ohio 43215
<TABLE>
<S> <C>
New Accounts and Toll-free Lines
General Information: In Ohio 800-282-9446
(614) 464-5511 Outside Ohio 800-848-7734
</TABLE>
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<NAME> THE CARDINARL FUND INC.
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