GUARDIAN BOND FUND INC
N-30D, 1995-09-19
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The Guardian Bond Fund, Inc. - 3
--------------------------------------------------------------------------------
The Guardian Bond Fund, Inc.

SCHEDULE OF INVESTMENTS
June 30, 1995 (Unaudited)

MULTI CLASS MORTGAGE PASS-THROUGHS -- 32.3%

  Principal
     Amount                                                    Value
---------------------------------------------------------------------
$  296,484  Citibank New York, NA
            9.50% due 8/1/16                               $  306,209
 5,000,000  Citicorp Mortgage Secs.,
            Inc. 7.00% due 6/25/23                          4,892,150
 4,750,000  Citicorp Mortgage Secs.,
            Inc. 6.50% due 1/25/24                          4,190,355
 5,000,000  Citicorp Mortgage Secs.,
            Inc. 6.25% due 3/25/24                          4,551,550
 3,352,519  Citicorp Mortgage Secs.,
            Inc. 7.75% due 11/25/06                         3,374,646
 7,770,759  GE Capital Mortgage Svcs.,
            Inc. 6.50% due 4/25/24                          7,486,582
 5,000,000  Residential Fdg. Mtg. Secs.,
            Inc. 5.95% due 11/25/23                         4,490,500
 7,308,326  Residential Fdg. Mtg. Secs.,
            Inc. 6.50% due 9/25/08                          7,002,253
 2,616,725  Sears Mortgage Secs. Corp.
            6.50% due 5/25/22                               2,579,568
10,000,000  Securitized Asset Sales, Inc.
            10.00% due 12/1/99                              9,794,000
 6,000,000  Federal Home Loan Mortgage
            Corp. 7.00% due 3/15/21                         5,902,500
 3,000,000  Federal Home Loan Mortgage
            Corp. 7.40% due 12/15/21                        3,042,180
12,700,000  Federal Home Loan Mortgage
            Corp. 6.50% due 5/15/19                        12,211,812
 6,000,000  Federal Home Loan Mortgage
            Corp. 6.80% due 12/15/18                        5,960,580
 5,000,000  Federal Home Loan Mortgage
            Corp. 6.00% due 11/15/20                        4,756,250
 4,000,000  Federal National Mortgage Assn.
            7.00% due 5/25/20                               3,943,720
 7,000,000  Federal National Mortgage Assn.
            7.00% due 4/25/12                               7,024,010
 4,359,000  Federal National Mortgage Assn.
            6.00% due 4/25/20                               4,141,050
 2,000,000  Federal National Mortgage Assn.
            5.75% due 4/25/06                               1,933,120
 1,000,000  Federal National Mortgage Assn.
            6.25% due 5/25/07                                 969,060
 13,000,000 Federal National Mortgage Assn.
            6.44% due 6/21/05                              12,914,200
                                                         ------------
Total Multi Class Mortgage Pass-Throughs
   (Cost $109,686,719)                                    111,466,295
                                                         ------------

MORTGAGE PASS-THROUGHS -- 9.5%

$  988,938  FNMA Pool #068106
            8.50% due 8/1/09                              $ 1,029,940
 1,318,955  FNMA Pool #068772
            8.00% due 6/1/08                                1,356,452
    15,935  FNMA Pool #072923
            8.25% due 1/1/09                                   16,390
14,266,768  FNMA Pool #190541
            7.00% due 1/1/24                               14,021,523
 7,034,058  FNMA Pool #250030
            7.00% due 5/1/24                                6,913,143
 1,969,028  FNMA Pool #250083
            7.00% due 7/1/24                                1,935,180
   783,206  FNMA Pool #277038
            7.00% due 5/1/24                                  769,743
   609,989  FNMA Pool #283501
            7.00% due 5/1/24                                  599,503
 5,964,437  FNMA Pool #307331
            8.00% due 8/1/19                                6,135,079
    12,882  GNMA Pool #000375
            11.50% due 7/20/00                                 13,562
     1,383  GNMA Pool #780002
            6.50% due 7/15/24                                   1,329
                                                         ------------
Total Mortgage Pass-Throughs
 (Cost $31,968,047)                                        32,791,844
                                                         ------------

U.S. GOVERNMENT AND AGENCIES -- 21.7%

$13,000,000 Federal Home Loan Mortgage
            Corp., 7.188% due 9/15/99                     $13,229,580
10,000,000  Federal Home Loan Mortgage
            Corp., 8.44% due 10/27/04                      10,395,800
20,500,000  U.S. Treasury Bonds 7.625%
            due 2/15/25                                    23,152,085
 9,500,000  U.S. Treasury Notes 6.875%
            due 7/31/99                                     9,796,875
10,000,000  U.S. Treasury Notes 6.875%
            due 8/31/99                                    10,317,200


                       See notes to financial statements.

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                                        1

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                                                The Guardian Bond Fund, Inc. - 3
--------------------------------------------------------------------------------



  Principal
     Amount                                                    Value
---------------------------------------------------------------------

$ 8,000,000 U.S. Treasury Notes 6.75%
            due 4/30/00                                   $ 8,242,480
                                                         ------------
Total U.S. Government and Agencies
 (Cost $73,049,457)                                        75,134,020
                                                         ------------

CORPORATE BONDS -- 32.8%

Asset Backed -- 6.8%
$2,700,000  Amer. Express Master Tr.,
            5.375% due 7/15/01                              2,569,212
 4,000,000  Banc One Auto Trust,
            6.90% due 4/15/98                               4,056,400
 8,000,000  Banc One Auto Trust,
            6.15% due 7/15/02                               7,953,600
 8,500,000  Premier Auto Trust,
            7.85% due 2/4/98                                8,715,135
                                                         ------------
                                                           23,294,347
                                                         ------------

Chemicals -- 2.5%
 8,500,000  Union Carbide Corp.,
            6.79% due 6/1/25                                8,433,870
                                                         ------------

Drugs -- 2.0%
 7,000,000  Rhone Poulenc SA,
            6.75% due 10/15/99                              7,015,820
                                                         ------------

Electronics -- 1.9%
 6,000,000  Philips Electronics NV,
            8.375% due 9/15/06                              6,627,180
                                                         ------------

Financial-Banks -- 1.6%
 3,000,000  Keycorp, 8.40% due
            4/1/99                                          3,175,320
 2,000,000  Republic NY Corp.,
            8.375% due 2/15/07                              2,231,500
                                                         ------------
                                                            5,406,820
                                                         ------------

Financial-Other -- 5.3%
 8,000,000  Gen. Motors Accep. Corp.
            MTN, 7.375% due 6/9/99                          8,204,320
 5,500,000  Gen. Motors Accep. Corp.
            MTN, 8.50% due 12/15/00                         5,928,725
 4,000,000  Grand Metropolitan Corp.
            7.00% due 6/15/99                               4,052,000
                                                         ------------
                                                           18,185,045
                                                         ------------

Machinery-Industrial Specialty -- 1.7%
 6,000,000  McDermott, Inc. MTN,
            6.57% due 4/20/98                               5,975,880
                                                         ------------

Merchandising-Department Store -- 1.0%
 3,400,000  Wal Mart Stores, Inc.,
            8.75% due 12/29/06                              3,544,330
                                                         ------------

Natural Gas-Diversified -- 0.6%
 1,000,000  Internorth, Inc.,
            9.625% due 3/15/06                              1,186,150
 1,000,000  Texas Eastern Corp.,
            8.50% due 2/10/97                               1,024,060
                                                         ------------
                                                            2,210,210
                                                         ------------

Paper and Forest Product -- 2.3%
 5,000,000  Boise Cascade Corp.,
            7.10% due 1/13/99                               4,926,900
 3,000,000  James River Corp.,
            6.75% due 10/1/99                               2,990,370
                                                         ------------
                                                            7,917,270
                                                         ------------

Telecommunications -- 1.4%
 5,000,000  Amer. Tel. & Tel. Cap. Corp.,
            5.28% due 8/15/97                               4,898,900
                                                         ------------

Tobacco -- 2.3%
 8,000,000  BAT Capital Corp.,
            6.875% due 4/15/03                              7,934,160
                                                         ------------

Utilities-Electric -- 3.4%
 2,500,000  Consumers Power Co.,
            7.50% due 6/1/02                                2,533,575
 5,000,000  Duquesne Light Co.,
            6.70% due 5/15/03                               4,940,150
 4,500,000  Illinois Power Co.,
            5.625% due 4/15/00                              4,303,890
                                                         ------------
                                                           11,777,615
                                                         ------------
Total Corporate Bonds
(Cost $111,606,244)                                       113,221,447
                                                         ------------


                       See notes to financial statements.


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                                        2


<PAGE>


The Guardian Bond Fund, Inc. - 3
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The Guardian Bond Fund, Inc.

SCHEDULE OF INVESTMENTS
June 30, 1995 (Unaudited)



REPURCHASE AGREEMENT -- 3.6%

  Principal
     Amount                                                    Value
---------------------------------------------------------------------
$12,390,000 State Street Bank & Trust
            repurchase agreement,
            dated 6/30/95, maturity
            value $12,396,195 at
            6% due 7/3/95 (colla-
            teralized by $12,000,000
            U.S. Treasury Notes, 6.875%
            due 2/28/97)                                 $ 12,390,000
                                                         ------------
TOTAL REPURCHASE AGREEMENT
 (COST $12,390,000)                                        12,390,000
                                                         ------------

TOTAL INVESTMENTS -- 99.9%
 (COST $338,700,467)                                      345,003,606

CASH, RECEIVABLES AND
 OTHER ASSETS LESS PAYABLES -- 0.1%                           486,729
                                                         ------------
NET ASSETS -- 100.0%                                     $345,490,335
                                                         ============




                       See notes to financial statements.


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                                        3


<PAGE>


                                                The Guardian Bond Fund, Inc. - 3
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STATEMENT OF ASSETS
AND LIABILITIES
June 30, 1995 (Unaudited)



ASSETS:
  Investments, at identified cost*                                $ 338,700,467
                                                                  =============

  Investments, at market                                            332,613,606
  Repurchase agreements                                              12,390,000
                                                                  -------------
  TOTAL INVESTMENTS                                                 345,003,606

  Cash                                                                  156,357
  Interest receivable                                                 3,869,896
  Other assets                                                            2,763
                                                                  -------------
  TOTAL ASSETS                                                      349,032,622
                                                                  -------------

LIABILITIES:
  Payable for securities purchased                                    3,064,440
  Accrued expenses                                                       27,611
  Due to affiliates -- Note B                                           450,236
                                                                  -------------
  TOTAL LIABILITIES                                                   3,542,287
                                                                  -------------
  NET ASSETS                                                      $ 345,490,335
                                                                  =============



COMPONENTS OF NET ASSETS:
  Common Stock -- $.10 par value each
  (100,000,000 shares authorized)                                 $   2,809,607
  Paid-in capital                                                   335,893,044
  Undistributed net investment income                                11,081,187
  Accumulated net realized (loss) on investments                    (10,596,642)
  Net unrealized appreciation of investments                          6,303,139
                                                                  -------------
  NET ASSETS                                                      $ 345,490,335
                                                                  =============

SHARES OUTSTANDING                                                   28,096,071
                                                                  -------------
NET ASSET VALUE PER SHARE                                         $       12.30
                                                                  =============


* Includes repurchase agreements.



STATEMENT OF OPERATIONS
For The Six Months Ended
June 30, 1995 (Unaudited)


Investment Income:
  Interest                                                           $11,864,769
                                                                     -----------
Expenses:
  Investment advisory fee -- Note B                                      814,615
  Custodian fees                                                          46,114
  Audit fees                                                               8,250
  Directors' fees -- Note B                                                5,000
  Printing expense                                                         2,750
  Insurance expense                                                        1,931
  Transfer agent fees                                                      1,650
  Legal fees                                                               1,429
  Registration fees                                                          826
  Other                                                                      360
                                                                     -----------
    Total Expenses                                                       882,925
                                                                     -----------

  Net Investment Income                                               10,981,844
                                                                     ===========

Realized and Unrealized Gain/(Loss)
   on Investments -- Note D
  Net realized gain on investments                                     2,667,043
  Net change in unrealized appreciation
    of investments                                                    20,522,973
                                                                     -----------
  Net Realized and Unrealized Gain
    on Investments                                                    23,190,016
                                                                     -----------
  Net Increase in Net Assets
    from Operations                                                  $34,171,860
                                                                     ===========


                       See notes to financial statements.


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                                        4


<PAGE>


The Guardian Bond Fund, Inc. - 3
--------------------------------------------------------------------------------
The Guardian Bond Fund, Inc.


STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
                                                                                Six Months
                                                                                     Ended         Year Ended
                                                                              June 30, 1995      December 31,
                                                                                (Unaudited)              1994
                                                                                -----------      ------------
<S>                                                                            <C>                <C>
INCREASE/(DECREASE) IN NET ASSETS
From Operations:
   Net investment income                                                       $ 10,981,844       $ 8,398,624
   Net realized gain/(loss) on investments                                        2,667,043       (13,787,259)
   Net change in unrealized appreciation/(depreciation) of investments           20,522,973       (16,409,226)
                                                                               ------------      ------------
     Net Increase/(Decrease) in Net Assets Resulting from Operations             34,171,860       (11,797,861)
                                                                               ------------      ------------

Distributions to Shareholders:
   Net investment income                                                                 --       (18,375,937)
   Net realized gain on investments                                                      --        (1,613,357)
                                                                               ------------      ------------
     Total Distributions to Shareholders                                                 --       (19,989,294)
                                                                               ------------      ------------

From Capital Share Transactions:
   Net increase in net assets from capital share transactions -- Note E           2,340,390           496,365
                                                                               ------------      ------------
     Net Increase/(Decrease) in Net Assets                                       36,512,250       (31,290,790)

Net Assets:
   Beginning of period                                                          308,978,085       340,268,875
                                                                               ------------      ------------
   End of period*                                                              $345,490,335      $308,978,085
                                                                               ============      ============

* Includes undistributed net investment income of:                              $11,081,187           $99,343

</TABLE>


                       See notes to financial statements.


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                                        5


<PAGE>


                                                The Guardian Bond Fund, Inc. - 3
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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 ............. $11.08   $12.24    $12.26   $12.33   $11.56   $11.67   $11.16   $11.12   $12.41  $11.57  $10.18
                           ------   ------    ------   ------   ------   ------   ------   ------   ------  ------  ------

Income from investment
   operations
   Net investment
     income ..............   0.39     0.40      0.70     0.81     0.92     0.97     0.98     1.03     0.96    0.83    0.74
   Net realized and unre-
      alized gain/(loss)
      on investments .....   0.83    (0.82)     0.50     0.13     0.91    (0.11)    0.55     0.02    (0.92)   0.83    1.44
                           ------   ------    ------   ------   ------   ------   ------   ------   ------  ------  ------
   Net increase/
      (decrease) from
      investment
      operations .........   1.22    (0.42)     1.20     0.94     1.83     0.86     1.53     1.05     0.04    1.66    2.18
                           ------   ------    ------   ------   ------   ------   ------   ------   ------  ------  ------
Distributions to
   shareholders
   Distributions from net
      investment
      income .............     --    (0.68)    (0.70)   (0.81)   (0.92)   (0.97)   (1.02)   (1.01)   (1.23)  (0.79)  (0.79)
   Distributions from net
      realized gain ......     --    (0.06)    (0.52)   (0.20)   (0.14)      --       --       --    (0.10)  (0.03)     --
                           ------   ------    ------   ------   ------   ------   ------   ------   ------  ------  ------
   Total distributions ...     --    (0.74)    (1.22)   (1.01)   (1.06)   (0.97)   (1.02)   (1.01)   (1.33)  (0.82)  (0.79)
                           ------   ------    ------   ------   ------   ------   ------   ------   ------  ------  ------

Net asset value, end of
   period ................ $12.30   $11.08    $12.24   $12.26   $12.33   $11.56   $11.67   $11.16   $11.12  $12.41  $11.57
                           ======   ======    ======   ======   ======   ======   ======   ======   ======  ======  ======
Total return* ............ 11.01%  (3.45)%     9.85%    7.70%   16.19%    7.57%   13.88%    9.70%     .32%  14.84%  22.36%
                           ======   ======    ======   ======   ======   ======   ======   ======   ======  ======  ======
Ratios/supplemental data:
   Net assets, end of
      period (000's
      omitted) ......... $345,490 $308,978 $340,2694 $284,330 $222,299 $165,844 $147,753 $113,616 $103,846 $73,491 $25,537
   Ratio of expenses to
      average net
      assets ...........    0.54%**  0.54%     0.55%    0.56%    0.57%    0.58%    0.60%    0.61%    0.62%   0.69%   1.00%
   Ratio of net invest-
      ment income to
      average net
      assets ...........    3.34%**  5.69%     5.56%    6.70%    7.81%    8.53%    8.78%    8.97%    8.97%   9.10%  10.25%
   Ratio of expenses
      subsidized by
      GISC                     --       --        --       --       --       --       --       --       --      --   0.16%
   Portfolio turnover
      rate .............     195%     311%      220%      57%      43%      39%     158%      24%      67%     55%     48%

</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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                                        6


<PAGE>



                                             The Guardian Stock, Bond & Cash - 4
--------------------------------------------------------------------------------
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


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                                        7


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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)



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


--------------------------------------------------------------------------------

                                        8


<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>


--------------------------------------------------------------------------------

                                        9


<PAGE>


The Guardian Stock, Bond & Cash - 4
--------------------------------------------------------------------------------
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.


--------------------------------------------------------------------------------

                                       10




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