The Guardian Cash Fund, Inc. - 4
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The Guardian Cash Fund, Inc.
SCHEDULE OF INVESTMENTS
June 30, 1995 (Unaudited)
COMMERCIAL PAPER -- 92.9%
Principal
Amount Value
-----------------------------------------------------------------------------
FINANCIAL -- 16.9%
Bank Holding Companies -- 8.4%
$15,200,000 Barclays U.S. Funding Corp.,
5.95% due 7/3/95 $ 15,194,976
15,200,000 Commerzbank US Fin. Corp.,
5.94% due 7/31/95 15,124,760
------------
30,319,736
------------
Financial-Others -- 8.5%
15,200,000 AT&T Capital Corp.,
5.95% due 7/17/95 15,159,805
15,200,000 USAA Capital Corp.,
5.95% due 7/27/95 15,134,682
------------
30,294,487
------------
Total Financial 60,614,223
------------
INDUSTRIAL -- 76.0%
Aerospace and Defense -- 4.2%
15,200,000 Rockwell Int'l. Corp.,
5.95% due 7/14/95 15,167,341
------------
Automotive -- 8.5%
15,200,000 Ford Motor Co.,
5.96% due 7/19/95 15,154,704
15,200,000 Toyota Motor Cr. Co.,
5.93% due 7/7/95 15,184,977
------------
30,339,681
------------
Beverage-Soft Drinks -- 4.2%
15,200,00 PepsiCo, Inc.,
5.93% due 7/21/95 15,149,924
------------
Conglomerate -- 4.2%
15,200,000 GE Capital Svcs., Inc.
5.94% due 7/17/95 15,159,872
------------
Containers-Metals and Plastic -- 4.2%
15,200,000 Sonoco Products Co.,
5.90% due 7/6/95 15,187,545
------------
Drugs -- 8.5%
15,200,000 Abbott Laboratories,
5.92% due 7/10/95 15,177,504
15,200,000 Pfizer, Inc.,
5.83% due 7/13/95 15,170,461
------------
30,347,965
------------
Electronics -- 4.2%
15,200,000 TDK USA Corp.,
5.96% due 7/20/95 15,152,188
------------
Food Processing -- 4.2%
15,200,000 Cargill, Inc.,
5.92% due 7/24/95 15,142,510
------------
Insurance-Multiline -- 4.3%
15,200,000 American Gen. Cap. Svcs.,
5.94% due 7/5/95 15,189,968
------------
Machinery-Industrial Specialty -- 4.2%
15,200,000 John Deere Cap. Corp.,
5.92% due 7/10/95 15,177,504
------------
Merchandising-Special -- 4.2%
15,200,000 Toys "R" Us, Inc.,
5.91% due 7/12/95 15,172,551
------------
Oil-Integrated-Domestic -- 4.2%
15,200,000 Chevron Oil Fin. Co.,
5.93% due 7/7/95 15,184,977
------------
Oil Services -- 4.2%
15,200,000 Colonial Pipeline Co.,
5.95% due 7/6/95 15,187,439
------------
Telecommunication -- 12.7%
15,200,000 Amer. Telephone & Telegraph
Co., 5.92% due 7/26/95 15,137,511
15,200,000 Bell Atlantic Fin'l. Svcs.,
5.97% due 8/2/95 15,119,339
15,200,000 Bell South Telecomm.
Inc., 5.93% due 7/13/95 15,169,955
------------
45,426,805
------------
Total Industrial 272,986,270
------------
TOTAL COMMERCIAL PAPER
(Cost $333,600,493) 333,600,493
------------
See notes to financial statements.
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<PAGE>
The Guardian Cash Fund, Inc. - 4
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Repurchase Agreement -- 7.4%
Principal
Amount Value
-----------------------------------------------------------------------------
$26,654,000 State Street Bank & Trust
repurchase agreement,
dated 6/30/95, maturity
value $26,667,327, 6%,
due 7/3/95 (collateralized
by $26,185,000 U.S. Treasury
Notes, 6.875% due 2/28/97) $ 26,654,000
------------
TOTAL REPURCHASE AGREEMENT
(Cost $26,654,000) 26,654,000
------------
TOTAL INVESTMENTS -- 100.3%
(Cost $361,709,970) 360,254,493
PAYABLES IN EXCESS OF CASH,
RECEIVABLES AND
OTHER ASSETS -- (0.3%) (1,032,471)
------------
NET ASSETS -- 100.0% $359,222,022
============
See notes to financial statements.
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<PAGE>
The Guardian Cash Fund, Inc. - 4
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The Guardian Cash Fund, Inc.
STATEMENT OF ASSETS
AND LIABILITIES
June 30, 1995 (Unaudited)
ASSETS:
Investments, at identified cost* $360,254,493
============
Investments, at market 333,600,493
Repurchase agreements 26,654,000
------------
TOTAL INVESTMENTS 360,254,493
Cash 231
Receivable for fund shares sold 317,830
Interest receivable 4,442
Other assets 2,458
------------
TOTAL ASSETS 360,579,454
------------
LIABILITIES:
Payable for fund shares redeemed 852,036
Accrued expenses 27,833
Due to affiliates-- Note B 477,563
------------
TOTAL LIABILITIES 1,357,432
------------
NET ASSETS $359,222,022
============
COMPONENTS OF NET ASSETS:
Common Stock -- $.10 par
value each (100,000,000
shares authorized) $ 3,592,220
Paid-in capital 355,629,802
------------
NET ASSETS $359,222,022
============
SHARES OUTSTANDING 35,922,022
------------
NET ASSET VALUE PER SHARE $ 10.00
============
* Includes repurchase agreements
STATEMENT OF OPERATIONS
for the Six Months Ended
June 30, 1995 (Unaudited)
INVESTMENT INCOME:
Income:
Interest $ 11,047,222
------------
EXPENSES:
Investment advisory fees -- Note B 919,659
Custodian fees 41,494
Audit fees 8,250
Directors' fees -- Note B 5,000
Printing expense 2,750
Insurance expense 2,458
Transfer agent fees 1,650
Legal fees 1,429
Registration fees 387
Other 360
------------
Total Expenses 983,437
------------
Net Investment Income $ 10,063,785
============
See notes to financial statements.
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The Guardian Cash Fund, Inc. - 4
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STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
June 30, December 31,
1995 (Unaudited) 1994
-------------- ------------
<S> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS
From Operations:
Net investment income $ 10,063,785 $ 13,907,542
------------ ------------
Net Increase in Net Assets Resulting from Operations 10,063,785 13,907,542
------------ ------------
Distributions to Shareholders:
Net investment income (10,063,785) (13,907,542)
------------ ------------
From Capital Share Transactions:
Net increase/(decrease) in net assets from
capital share transactions -- Note E (27,763,814) 76,187,548
------------ ------------
Net Increase/(Decrease) in Net Assets (27,763,814) 76,187,548
Net Assets:
Beginning of period 386,985,836 310,798,288
------------ ------------
End of period $359,222,022 $386,985,836
============ ============
</TABLE>
See notes to financial statements
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4
<PAGE>
The Guardian Cash Fund, Inc. - 4
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The Guardian Cash Fund, Inc.
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock outstanding throughout the periods
indicated:
<TABLE>
<CAPTION>
Six Months
Ended
June 30, Year Ended December 31,
1995 -----------------------------------------------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
----------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning
of period $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from invest-
ment operations
Net investment
income 0.27 0.38 0.26 0.35 0.54 0.77 0.87 0.72 0.63 0.62 0.75
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Distributions to
Shareholders
Dividends from net
investment income (0.27) (0.38) (0.26) (0.35) (0.54) (0.77) (0.87) (0.72) (0.63) (0.62) (0.75)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of
period $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total return* 5.54% 3.82% 2.64% 3.21% 5.59% 7.95% 8.70% 7.20% 6.30% 6.20% 7.50%
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Ratios/supplemental data:
Net assets, end of
period (000's
omitted) $359,222 $386,986 $310,798 $318,879 $331,677 $331,600 $262,865 $228,310 $164,326 $87,403 $58,141
Ratio of expenses
to average net
assets 0.53%** 0.54% 0.54% 0.54% 0.55% 0.56% 0.56% 0.58% 0.61% 0.61% 0.64%
Ratio of net invest-
ment income to
average net
assets 5.47%** 3.81% 2.61% 3.17% 5.44% 7.67% 8.67% 7.17% 6.27% 6.14% 7.61%
</TABLE>
* Total returns do not reflect the effects of charges deducted under the
terms of GIAC's variable contracts. Including such charges would reduce the
total returns for all periods shown.
** Annualized.
See notes to financial statements.
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5
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The Guardian Stock, Bond & Cash - 4
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The Guardian Stock Fund, Inc., The Guardian Bond Fund, Inc.,
The Guardian Cash Fund, Inc.
COMBINED NOTES TO FINANCIAL STATEMENTS
June 30, 1995 (Unaudited)
Note A -- Organization and Accounting Policies
The Guardian Stock Fund, Inc. (GSF), The Guardian Bond Fund, Inc. (GBF) and
The Guardian Cash Fund, Inc. (GCF) (collectively, the Funds and individually, a
Fund), are each incorporated in the state of Maryland and are diversified
open-end management investment companies registered under the Investment Company
Act of 1940, as amended (1940 Act). Each Fund sold 10,000 of its shares to The
Guardian Insurance & Annuity Company, Inc. (GIAC) for $100,000 in order to
facilitate the commencement of its operations. Such shares were subsequently
deposited in The Guardian Separate Account A, a separate account of GIAC which
is registered as a unit investment trust under the 1940 Act. Shares of the Funds
are only sold to certain separate accounts of GIAC. The Funds are available for
investment only through the purchase of certain variable annuity and variable
life insurance contracts issued by GIAC. GIAC is a wholly owned subsidiary of
The Guardian Life Insurance Company of America (Guardian Life). Significant
accounting policies of the Funds are as follows:
Investments
Investments in GSF and GBF are carried at value. Securities listed on
national securities exchanges are valued based upon closing prices on these
exchanges. Securities traded in the over-the-counter market and listed
securities for which there have been no trades for the day are valued at the
mean of the bid and asked prices.
Certain debt securities may be valued each business day by an independent
pricing service (Service) approved by the Board of Directors. Debt securities
for which quoted bid prices, in the judgment of the Service, are readily
available and representative of the bid side of the market, are valued at the
mean between the quoted bid prices (as obtained by the Service from dealers in
such securities) and asked prices (as calculated by the Service based upon its
evaluation of the market for such securities). Other debt securities that are
valued by the Service are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of securities
of comparable quality, coupon, maturity and type; indications as to values from
dealers; and general market conditions.
Securities for which market quotations are not readily available, including
certain mortgage-backed securities and restricted securities, are valued by
using methods that each Fund's Board of Directors, in good faith, believes will
accurately reflect their fair value.
The valuation of securities held by GCF is based upon their amortized cost
which approximates market value, in accordance with Rule 2a-7 under the 1940
Act. Amortized cost valuations do not take into account unrealized gains and
losses.
Investment securities transactions are recorded on the date of purchase or
sale. Repurchase agreements are carried at cost, which approximates value (see
Note C).
Net realized gain or loss on sales of investments is determined on the basis
of identified cost. Interest income, including amortization of premium and
discount, is recorded when earned. Dividends are recorded on the ex-dividend
date.
Federal Income Taxes
Each Fund qualifies and intends to remain qualified to be taxed as a
"regulated investment company" under the provisions of the Internal Revenue Code
--------------------------------------------------------------------------------
6
<PAGE>
The Guardian Stock, Bond & Cash - 4
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The Guardian Stock Fund, Inc., The Guardian Bond Fund, Inc.,
The Guardian Cash Fund, Inc.
COMBINED NOTES TO FINANCIAL STATEMENTS
June 30, 1995 (Unaudited)
of 1986, as amended (Code), and as such will not be subject to federal income
tax on investment income (including any realized capital gains) which is
distributed to its shareholders in accordance with the applicable provisions of
the Code. Therefore, no federal income tax provision is required.
Reclassifications of Capital Accounts
During the year ended December 31, 1994, GSF reclassified ($113,817) to
paid-in capital from accumulated net realized gains/(losses) to reflect
permanent differences between income recognition on a tax basis and a GAAP
basis.
Dividend Distributions
GSF and GBF intend to distribute each year, as dividends or capital gain
distributions, substantially all net investment income and net capital gains
realized. All such dividends or distributions are credited in the form of
additional shares of the applicable Fund at net asset value on the ex-dividend
date. Such distributions are determined in conformity with federal income tax
regulations. Differences between the recognition of income on an income tax
basis and recognition of income based on generally accepted accounting
principles may cause temporary overdistributions of net realized gains and net
investment income. Currently, the policy of GSF and GBF is to distribute net
investment income approximately every six months and net capital gains annually.
This policy is, however, subject to change at any time by each Fund's Board of
Directors.
GCF earns interest on its investments daily and distributes all of its net
investment income, increased or decreased by realized gains or losses, each day
GCF is open for business. Earnings for Saturdays, Sundays and holidays are paid
as a dividend on the next business day.
All dividends and distributions are credited in the form of additional shares
of GCF at net asset value on the payable date.
Note B -- Investment Advisory Agreements
and Payments to Related Parties
Each Fund has an investment advisory agreement with Guardian Investor
Services Corporation (GISC), a wholly owned subsidiary of GIAC. GISC receives a
management fee from each Fund computed at the rate of .50% of the daily average
net assets during the fiscal year, payable quarterly. If total expenses of any
Fund (excluding taxes, interest and brokerage commissions, but including the
investment advisory fee) exceeds 1% per annum of the average daily net assets of
the Fund, GISC has agreed to assume any such expenses. None of the Funds
exceeded this limit during the six months ended June 30, 1995.
No compensation is paid by any of the Funds to a director who is deemed to be
an "interested person" (as defined in the 1940 Act) of a Fund. Each director not
deemed an "interested person" is paid an annual fee of $500 by each Fund, and
$350 for attendance at each meeting of each Fund. The aggregate remuneration
paid by each Fund to its disinterested directors was $5,000 for the six months
ended June 30, 1995.
Note C -- Repurchase Agreements
Collateral underlying repurchase agreements takes the form of either cash or
fully negotiable U.S. government securities. Repurchase agreements are fully
collateralized (including the interest earned thereon) and such collateral is
marked to market daily while the agreements remain in force. If the value of the
underlying securities falls below the value of the repurchase price plus accrued
--------------------------------------------------------------------------------
7
<PAGE>
The Guardian Stock, Bond & Cash - 4
--------------------------------------------------------------------------------
interest, the Funds will require the seller to deposit additional collateral by
the next business day. If the request for additional collateral is not met, or
the seller defaults, the Funds maintain the right to sell the collateral and may
claim any resulting loss against the seller. Each Fund's Board of Directors has
established standards to evaluate the creditworthiness of broker-dealers and
banks which engage in repurchase agreements with each Fund. Repurchase
agreements of more than one week's duration (or investments in any other
securities which are deemed to be not readily marketable by the staff of the
Securities and Exchange Commission) are not permitted if more than 10% of a
Fund's net assets would be so invested.
Note D -- Investment Transactions
<TABLE>
<CAPTION>
Purchases and proceeds from sales of securities (excluding short-term securities) were as follows:
Six Months Ended June 30, 1995 (Unaudited)
-----------------------------------------
GSF GBF
----- -----
<S> <C> <C>
Purchases
Stocks and debt obligations $ 383,094,399 $ 141,242,086
U.S. Government and government agency obligations -- 501,948,057
Proceeds
Stocks and debt obligations $ 310,354,216 $ 163,139,778
U.S. Government and government agency obligations -- 425,858,202
</TABLE>
<TABLE>
The cost of investments owned at June 30, 1995 for federal income tax purposes was $1,031,324,923,
$338,700,467 and $360,254,493 for GSF, GBF and GCF, respectively. The gross unrealized appreciation and
depreciation at June 30, 1995 for GSF and GBF were as follows:
GSF GBF
----- -----
<S> <C> <C>
Gross Appreciation $ 333,524,402 $ 8,305,058
Gross Depreciation (13,575,124) (2,001,919)
------------- -----------
Net Unrealized Appreciation $ 319,949,278 $ 6,303,139
============= ===========
</TABLE>
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8
<PAGE>
The Guardian Stock, Bond & Cash - 4
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The Guardian Stock Fund, Inc., The Guardian Bond Fund, Inc.,
The Guardian Cash Fund, Inc.
COMBINED NOTES TO FINANCIAL STATEMENTS
June 30, 1995 (Unaudited)
Note E -- Transactions in Capital Stock
<TABLE>
<CAPTION>
The Guardian Stock Fund, Inc.
Six Months Ended June 30, Year Ended December 31,
1995 (Unaudited) 1994
-------------------------- --------------------------
Shares Amount Shares Amount
------------ ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold 4,830,224 $143,558,734 10,511,824 $299,351,838
Shares issued through reinvestment of
dividends from net investment income and
net realized gain on sales of investments -- -- 1,661,572 45,909,555
------------ ------------ ---------- ------------
4,830,224 143,558,734 12,173,396 345,261,393
Less shares repurchased (1,882,684) (55,515,605) (4,131,682) (117,077,466)
------------ ------------ ---------- ------------
NET INCREASE 2,947,540 $ 88,043,129 8,041,714 $228,183,927
============ ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
The Guardian Bond Fund, Inc.
Six Months Ended June 30, Year Ended December 31,
1995 (Unaudited) 1994
-------------------------- --------------------------
Shares Amount Shares Amount
------------ ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold 2,619,517 $ 30,497,213 4,878,473 $ 57,770,327
Shares issued through reinvestment of
dividends from net investment income and
net realized gain on sales of investments -- -- 1,769,521 19,989,294
------------ ------------ ---------- ------------
2,619,517 30,497,213 6,647,994 77,759,621
Less shares repurchased (2,410,055) (28,156,821) (6,559,394) (77,263,256)
------------ ------------ ---------- ------------
NET INCREASE 209,462 $ 2,340,392 88,600 $ 496,365
============ ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
The Guardian Cash Fund, Inc.
Six Months Ended June 30, Year Ended December 31,
1995 (Unaudited) 1994
-------------------------- --------------------------
Shares Amount Shares Amount
------------ ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold 9,859,897 $ 98,598,981 28,157,184 $281,571,841
Shares issued through reinvestment of
dividends from net investment income and
net realized gain on sales of investments 1,006,368 10,063,680 1,390,754 13,907,542
------------ ------------ ---------- ------------
10,866,265 108,662,661 29,547,938 295,479,383
Less shares repurchased (13,642,647) (136,426,475) (21,929,183) (219,291,835)
------------ ------------ ---------- ------------
NET INCREASE (DECREASE) $ (2,776,382) $(27,763,814) 7,618,755 $ 76,187,548
============ ============ ========== ============
</TABLE>
Note F -- Line of Credit
A $20,000,000 line of credit available to all of the Funds was established
with Morgan Guaranty Trust Company. The rate of interest charged on any
borrowings is based upon the prevailing Federal Funds rate at the time of the
loan plus .25% calculated on a 360 day basis per annum. For the six months ended
June 30, 1995, none of the Funds borrowed against this line of credit.
--------------------------------------------------------------------------------
9
