The Guardian Stock Fund, Inc. - 2
--------------------------------------------------------------------------------
The Guardian Stock Fund, Inc.
SCHEDULE OF INVESTMENTS
June 30, 1995 (Unaudited)
COMMON STOCKS -- 91.1%
Shares Value
-----------------------------------------------------------------
Aerospace and Defense -- 4.6%
97,000 Litton Industries, Inc. $ 3,576,875
68,600 Lockheed Martin Corp. 4,330,375
138,200 Logicon, Inc. 6,149,900
19,500 Loral Corp. 1,009,125
351,000 McDonnell Douglas Corp. 26,939,250
201,750 Precision Castparts Corp. 7,086,469
238,000 Rockwell Int'l. Corp. 10,888,500
77,800 Thiokol Corp. 2,353,450
-----------
62,333,944
-----------
Appliance and Furniture -- 0.2%
187,000 Maytag Corp. 2,992,000
-----------
Automotive -- 0.7%
38,000 Borg Warner Automotive, Inc. 1,083,000
257,000 Echlin, Inc. 8,930,750
-----------
10,013,750
-----------
Broadcasting -- 1.4%
30,740 CBS, Inc. 2,059,580
151,000 Capital Cities, ABC, Inc. 16,308,000
-----------
18,367,580
-----------
Building Materials -- 0.3%
55,000 Coachmen Industries, Inc. 838,750
17,900 MCI Building Systems, Inc. 299,825
60,000 McGrath Rent Corp. 1,050,000
70,000 Del Webb Corp. 1,627,500
-----------
3,816,075
-----------
Business Services -- 0.9%
355,650 Paychex, Inc. 12,892,313
-----------
Capital Goods-Miscellaneous Technology -- 0.5%
77,000 Aviall, Inc. 644,875
18,796 Olsten Corp. 615,569
175,000 Read-Rite Corp. 4,681,250
60,400 Rexel, Inc. 573,800
-----------
6,515,494
-----------
Chemicals -- 6.8%
60,000 Albemarle Corp. 937,500
65,000 Avery Dennison Corp. 2,600,000
94,000 Cambrex Corp. 3,172,500
65,000 Dow Chemical Co. 4,671,875
417,100 E.I. Dupont De Nemours, Inc. 28,675,625
204,000 Eastman Chemical Co. 12,138,000
301,200 Hercules, Inc. 14,683,500
40,000 Monsanto Co. 3,605,000
21,800 OM Group, Inc. 621,300
230,000 PPG Industries, Inc. 9,890,000
28,000 A. Schulman, Inc. 805,000
300,000 Sterling Chemicals, Inc. 3,487,500
195,000 Union Carbide Corp. 6,508,125
-----------
91,795,925
-----------
Conglomerates -- 1.2%
287,100 Pittston Services Group 6,890,400
155,000 Textron, Inc. 9,009,375
-----------
15,899,775
-----------
Containers -- 0.3%
113,675 Alltrista Corp. 2,188,244
50,000 Ball Corp. 1,743,750
-----------
3,931,994
-----------
Cosmetics and Toiletries -- 0.3%
15,200 Helen of Troy Ltd. 319,200
70,000 Gillette Co. 3,123,750
-----------
3,442,950
-----------
Electrical Equipment -- 0.2%
23,000 Cable Design Technologies Corp. 494,500
32,700 Linear Technology Corp. 2,158,200
-----------
2,652,700
-----------
Electronics and Instruments -- 0.8%
240,000 Analogic Corp. 4,020,000
59,500 Electroglas, Inc. 3,406,375
50,600 Strattec Sec. Corp. 619,850
62,000 Tektronix, Inc. 3,053,500
-----------
11,099,725
-----------
Energy-Miscellaneous -- 0.5%
192,500 Giant Industries, Inc. 1,636,250
196,930 Holly Corp. 4,554,006
84,000 Howell Corp. 1,155,000
-----------
7,345,256
-----------
Entertainment -- 1.1%
100,000 Walt Disney Co. 5,562,500
193,640 Mattel, Inc. 5,034,640
See notes to financial statements.
--------------------------------------------------------------------------------
1
<PAGE>
The Guardian Stock Fund, Inc. - 2
--------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------
Entertainment -- 1.1% (Continued)
13,000 National Gaming Corp. $ 112,125
8,840 Viacom, Inc., Cl A 411,060
66,979 Viacom, Inc., Cl B 3,106,151
82,500 Viacom, Inc., Non-Voting 123,750
-----------
14,350,226
-----------
Fertilizer -- 0.8%
88,100 First Mississippi Corp. 3,006,413
86,200 Mississippi Chemical Corp. 1,718,613
499,100 Terra Industries, Inc. 6,051,587
-----------
10,776,613
-----------
Financial-Banks -- 2.0%
120,000 Bank of New York, Inc. 4,845,000
50,000 Central & Southern Hldgs. Co. 365,625
71,484 Citicorp 4,137,137
18,000 Commonwealth Bankshares, Inc. 147,375
125,000 First Bank Systems Corp. 5,125,000
19,900 First Empire State Corp. 3,412,850
61,013 Gateway Bancorp, Inc. 732,156
77,220 Hubco, Inc. 1,380,307
120,000 Premier Bancorp, Inc. 2,160,000
191,641 Signet Banking Corp. 4,192,147
18,000 Star Banc Corp. 828,000
10,000 US Bancorp, Inc. 235,000
-----------
27,560,597
-----------
Financial-Others -- 4.5%
160,000 American Express Co. 5,620,000
191,641 Capital One Financial Corp. 3,737,000
160,000 Dean Witter Discover & Co. 7,520,000
295,600 Duff & Phelps Corp. 3,177,700
21,666 Duff & Phelps Cr. Rating Co. 281,657
258,000 First USA, Inc. 11,448,750
165,500 Foothill Group, Inc. 4,220,250
317,500 Green Tree Acceptance, Inc. 14,089,063
84,500 Jefferies Group, Inc. 3,042,000
94,000 McDonald & Co. Investments, Inc. 1,492,250
256,050 Morgan Keegan, Inc. 3,136,612
153,825 Raymond James Financial, Inc. 2,980,359
--------------
60,745,641
--------------
Financial-Thrift -- 3.7%
18,500 Albank Fin'l. Corp. 483,313
22,600 Bell Bancorp. 638,450
120,000 Brooklyn Bancorp., Inc. 4,050,000
148,000 Charter One Financial, Inc. 3,626,000
66,000 Coastal Bank Svgs. Assn.-TX 1,072,500
246,600 Collective Bancorp, Inc. 4,993,650
86,900 Greenpoint Financial Corp. 2,053,012
115,200 Loyola Capital Corp. 3,571,200
17,850 MAF Bancorp, Inc. 419,475
94,700 Maryland Fed. Bancorp, Inc. 3,054,075
37,666 Pacific Crest Capital, Inc. 207,163
82,362 Progressive Bank, Inc. 2,110,526
285,000 Roosevelt Financial Group, Inc. 4,755,938
45,635 Salem Bank & Trust Nat'l. Assn. 519,097
503,278 Sovereign Bancorp, Inc. 4,844,051
167,800 Standard Fed. Bk.-Troy, MI 5,642,275
159,383 TCF Financial Corp. 7,570,692
--------------
49,611,417
--------------
Food, Beverage and Tobacco -- 3.6%
255,000 Archer Daniels Midland Co. 4,749,375
50,100 Brown-Forman Corp. 1,672,087
328,600 Coca Cola Co. 20,948,250
131,200 IBP, Inc. 5,707,200
207,000 Philip Morris Cos., Inc. 15,395,625
--------------
48,472,537
--------------
Healthcare -- 5.1%
228,300 Caremark International, Inc. 4,566,000
84,000 Circa Pharmaceuticals, Inc. 2,677,500
34,776 Coram Healthcare Corp. 491,211
83,000 Eli Lilly & Co., Inc. 6,515,500
54,900 Healthsource, Inc. 1,921,500
175,000 Humana, Inc. 3,084,375
255,000 Johnson & Johnson 17,244,375
115,700 Liposome, Inc. 1,258,238
175,000 McKesson Corp. 8,181,250
210,000 Merck & Co., Inc. 10,290,000
152,000 Universeal Health Svcs., Inc. 4,408,000
266,950 U.S. Healthcare Systems, Inc. 8,175,344
--------------
68,813,293
--------------
Household Products -- 0.9%
176,800 Procter & Gamble Co. 12,707,500
--------------
See notes to financial statements.
--------------------------------------------------------------------------------
2
<PAGE>
The Guardian Stock Fund, Inc. - 2
--------------------------------------------------------------------------------
The Guardian Stock Fund, Inc.
SCHEDULE OF INVESTMENTS
June 30, 1995 (Unaudited)
Shares Value
-----------------------------------------------------------------
Information Processing -- 8.1%
138,400 Amdahl Corp. $ 1,539,700
67,550 Astro-Med, Inc. 772,603
103,600 Ceridian Corp. 3,820,250
391,000 Computer Assoc. Int'l., Inc. 26,490,250
114,000 Fair Isaac & Co., Inc. 3,391,500
185,000 Hewlett Packard Co. 13,782,500
48,700 In Focus Systems, Inc. 1,314,900
439,700 Int'l. Business Machine 42,211,200
28,200 Legent Corp. 1,233,750
340,000 Quantum Corp. 7,777,500
73,000 Sungard Data Systems, Inc. 3,814,250
54,700 Teradyne, Inc. 3,576,013
--------------
109,724,416
--------------
Insurance -- 1.7%
80,000 AMBAC, Inc. 3,210,000
74,000 American Eagle Group, Inc. 888,000
99,000 Amer. Bankers Ins. Group, Inc. 3,143,250
44,500 Capital Guaranty Corp. 801,000
31,000 Capitol Amer. Fin'l., Corp. 705,250
109,200 Equitable Iowa Cos., Inc. 3,589,950
68,847 Liberty Financial Cos., Inc. 1,772,810
107,000 MBIA, Inc. 7,115,500
72,000 State Auto Financial Corp. 1,350,000
--------------
22,575,760
--------------
Leisure Products -- 1.0%
39,525 Arctco, Inc. 464,419
276,000 Brunswick Corp. 4,692,000
82,300 Callaway Golf Co. 1,234,500
130,000 Harley-Davidson, Inc. 3,168,750
17,000 Recoton Corp. 331,500
42,800 Sturm Ruger & Co., Inc. 1,396,350
129,700 Thor Industries, Inc. 2,561,575
--------------
13,849,094
--------------
Lodging -- 1.7%
165,000 Hospitality Franchise Sys. Co.* 5,713,125
944,700 Host Marriott Corp. 10,037,438
126,000 Marriott Int'l., Inc. 4,520,250
298,000 Prime Hospitality Corp. 2,942,750
--------------
23,213,563
--------------
Machinery and Equipment -- 5.8%
24,000 AGCO Corp. 900,000
253,000 Briggs & Stratton Corp. 8,728,500
70,000 Case Corp. 2,082,500
45,000 Caterpillar, Inc. 2,891,250
224,381 Cummins Engine, Inc. 9,788,621
114,000 Dana Corp. 3,263,250
50,000 Deere & Co. 4,281,250
91,000 Dover Corp. 6,620,250
148,500 Eaton Corp. 8,631,563
18,000 Furon Co. 396,000
249,400 Indresco, Inc. 3,865,700
67,000 Millipore Corp. 4,522,500
82,500 Parker Hannifin Corp. 2,990,625
115,900 Pentair, Inc. 5,041,650
20,000 Robbins & Myers, Inc. 550,000
37,900 Roper Industries, Inc. 1,326,500
110,100 Tecumseh Products Co. 4,844,400
98,588 Varlen Corp. 2,316,806
110,000 York International Corp. 4,950,000
--------------
` 77,991,365
--------------
Merchandising-Department Stores -- 1.4%
91,700 Carson Pirie Scott & Co. 1,501,588
385,200 Federated Dept. Stores, Inc. 9,918,900
120,000 Sears Roebuck & Co. 7,185,000
--------------
18,605,488
--------------
Merchandising-Drugs -- 0.2%
78,750 Bergen Brunswig Corp. 1,801,406
23,400 Foxmeyer Health Corp. 418,275
--------------
2,219,681
--------------
Merchandising-Food -- 0.8%
128,000 Albertson's, Inc. 3,808,000
354,600 Casey's General Stores, Inc. 6,382,800
--------------
10,190,800
--------------
Merchandising-Special -- 0.7%
168,500 Tandy Corp. 8,740,938
51,200 Waban, Inc. 761,600
--------------
9,502,538
--------------
* Includes repurchase agreements.
See notes to financial statements.
--------------------------------------------------------------------------------
3
<PAGE>
The Guardian Stock Fund, Inc. - 2
--------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------
Metals and Mining -- 2.8%
53,500 Alumax, Inc. $ 1,665,188
120,000 Aluminum Co. of America 6,015,000
232,000 Asarco, Inc. 7,076,000
64,000 Cyprus Amax Minerals Co. 1,824,000
199,600 Magma Copper Co. 3,243,500
120,000 Phelps Dodge Corp. 7,080,000
612,723 Santa Fe Pacific Gold Corp. 7,429,266
110,000 Weirton Steel Corp. 770,000
239,700 WHX Corp. 2,816,475
--------------
37,919,429
--------------
Natural Gas-Diversified -- 0.3%
177,600 Mitchell Energy & Dev. Corp. 3,174,600
132,500 USX Delhi Group 1,523,750
--------------
4,698,350
--------------
Oil and Gas Producing -- 3.2%
103,000 Alexander Energy Corp. 431,312
99,909 Apache Corp. 2,735,009
65,400 Barrett Resources Corp. 1,520,550
125,000 Basin Exploration, Inc. 742,187
192,000 Tom Brown, Inc. 2,856,000
140,000 Cairn Energy USA, Inc. 1,540,000
180,000 Chieftain International, Inc. 2,452,500
194,700 Coho Energy, Inc. 997,837
247,000 Devon Energy Corp. 5,310,500
375,100 Global Natural Res., Inc. 4,032,325
28,300 H S Resources, Inc. 396,200
220,000 Home Oil Ltd. 2,832,500
196,000 Phoenix Resource Cos., Inc. 6,223,000
161,900 Pogo Producing Co. 3,703,463
170,868 Snyder Oil Corp. 2,157,209
208,167 United Meridian Corp. 3,226,588
82,600 Vintage Petroleum, Inc. 1,548,750
220,000 Wainoco Oil Ltd. 907,500
--------------
43,613,430
--------------
Oil-Integrated-Domestic -- 1.4%
234,600 Amoco Corp. 15,630,225
342,000 Tesoro Petroleum, Inc. 3,420,000
--------------
19,050,225
--------------
Oil-Integrated-International-- 4.1%
125,000 Mobil Corp. 12,000,000
624,000 Exxon Corp. 44,070,000
--------------
56,070,000
--------------
Oil Services -- 0.8%
29,200 Cliffs Drilling Co. 416,100
341,000 Nabors Industries, Inc. 2,813,250
225,448 Noble Drilling Corp. 1,662,682
131,700 Offshore Logistics, Inc. 1,843,800
205,000 Smith International, Inc. 3,433,750
24,000 Weatherford International, Inc.* 303,000
--------------
10,472,582
--------------
Paper and Forest Products -- 4.0%
175,000 Boise Cascade Corp. 7,087,500
78,000 Federal Paper Board, Inc. 2,759,250
100,000 Georgia Pacific Corp. 8,675,000
62,000 International Paper Co. 5,316,500
115,000 Mead Corp. 6,828,125
541,000 Rayonier, Inc. 19,205,500
76,900 Willamette Industries, Inc. 4,267,950
--------------
54,139,825
--------------
Railroads -- 0.7%
200,000 Illinois Central Corp. 6,900,000
116,542 Santa Fe Pacific Corp. 2,971,821
--------------
9,871,821
--------------
Restaurants -- 0.5%
271,100 Applebees Int'l., Inc. 6,980,825
--------------
Semiconductor -- 8.6%
138,900 Adv. Micro-Devices, Inc. 5,052,488
91,000 Altera Corp. 3,935,750
57,000 Analog Devices, Inc. 1,938,000
48,900 Atmel Corp. 2,707,837
62,800 Cypress Semiconductor Corp. 2,543,400
246,000 Intel Corp. 15,574,875
62,000 International Rectifier Corp. 2,015,000
374,000 LSI Logic Corp. 14,632,750
484,500 Micron Technology, Inc. 26,586,938
151,400 Motorola, Inc. 10,162,725
23,000 Novellus Systems, Inc. 1,558,250
149,500 Texas Instruments, Inc. 20,014,313
100,000 Xilinx, Inc. 9,400,000
--------------
116,122,326
--------------
* Includes repurchase agreements.
See notes to financial statements.
--------------------------------------------------------------------------------
4
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The Guardian Stock Fund, Inc. - 2
--------------------------------------------------------------------------------
The Guardian Stock Fund, Inc.
SCHEDULE OF INVESTMENTS
June 30, 1995 (Unaudited)
Shares Value
-----------------------------------------------------------------
Telecommunication -- 1.9%
30,000 ADC Telecommunication, Inc. $ 1,072,500
270,000 Andrew Corp. 15,626,250
200,000 DSC Communication Corp. 9,300,000
--------------
25,998,750
--------------
Textile-Apparel and Production -- 0.6%
176,900 Fieldcrest Cannon, Inc. 3,825,462
160,000 Wellman, Inc. 4,380,000
--------------
8,205,462
--------------
Transportation-Miscellaneous -- 0.1%
164,100 Maritrans, Inc. 964,087
--------------
Truckers -- 0.2%
32,100 FRP Pptys., Inc. 690,150
39,500 Landstar System, Inc. 1,017,125
35,100 Werner Enterprises, Inc. 702,000
--------------
2,409,275
--------------
Utilities-Gas and Pipeline -- 0.1%
39,500 ONEOK, Inc. 844,312
--------------
Total Common Stocks
(Cost $911,331,537) 1,231,370,709
--------------
CONVERTIBLE BONDS -- 0.0%
Principal
Amount Value
-----------------------------------------------------------------
$ 600,000 Mediq, Inc. 7.25%
Deb., due 6/1/06 $ 507,000
--------------
Total Convertible Bonds
(Cost $577,045) 507,000
--------------
U.S. GOVERNMENT SECURITIES -- 1.3%
Principal
Amount Value
-----------------------------------------------------------------
$ 17,000,000 U.S. Treasury Notes,
4.25% due 7/31/95 $ 16,981,470
--------------
Total U.S. Government Securities
(Cost $17,001,341) 16,981,470
--------------
REPURCHASE AGREEMENT -- 7.6%
Principal Maturity
Amount Date Value
-----------------------------------------------------------------
$102,415,000 State Street Bank & Trust
repurchase agreement,
dated 6/30/95, maturity
value $102,466,208, 6%,
due 7/3/95(collateralized
by $100,600,000 U.S.
Treasury Notes, 6.875%
due 2/28/97) 7/3/95 $ 102,415,000
--------------
Total Repurchase Agreement
(Cost $102,415,000) 102,415,000
--------------
Total Investments -- 100.0%
(Cost $1,031,324,923) 1,351,274,179
Payables in Excess of Cash,
Receivables and Other Assets -- (0.0%) (284,009)
--------------
NET ASSETS -- 100.0% $1,350,990,170
==============
See notes to financial statements.
--------------------------------------------------------------------------------
5
<PAGE>
The Guardian Stock Fund, Inc. - 2
--------------------------------------------------------------------------------
STATEMENT OF ASSETS
AND LIABILITIES
June 30, 1995 (Unaudited)
ASSETS:
Investments, at identified cost* ........... $1,031,324,923
==============
Investments, at market ..................... 1,248,859,201
Repurchase agreements ...................... 102,415,000
--------------
TOTAL INVESTMENTS .......................... 1,351,274,201
Cash ....................................... 430
Receivable for securities sold ............. 17,456,420
Receivable for fund shares sold ............ 2,008,284
Dividends receivable ....................... 1,546,236
Interest receivable ........................ 322,069
Other assets ............................... 5,969
--------------
TOTAL ASSETS ............................... 1,372,613,609
--------------
LIABILITIES:
Payable for securities purchased ........... 19,932,840
Accrued expenses ........................... 57,789
Due to affiliates -- Note B ................ 1,632,810
--------------
TOTAL LIABILITIES .......................... 21,623,439
--------------
NET ASSETS ................................. $1,350,990,170
==============
COMPONENTS OF NET ASSETS:
Common Stock -- $.10 par value
each (100,000,000
shares authorized) ....................... $ 4,096,178
Paid-in capital ............................ 1,002,061,021
Undistributed net investment income ........ 7,527,379
Accumulated net realized gain on investments 17,356,314
Net unrealized appreciation of investments . 319,949,278
--------------
NET ASSETS .................................. $1,350,990,170
==============
SHARES OUTSTANDING ........................... 40,961,784
==============
NET ASSET VALUE PER SHARE ................... $ 32.98
==============
* Includes repurchase agreements.
STATEMENT OF OPERATIONS
For The Six Months Ended
June 30, 1995(Unaudited)
Investment Income:
Dividends .................................. $ 8,196,391
Interest ................................... 2,657,337
Other Income ............................... 11,951
--------------
Total Income ............................. 10,865,679
--------------
Expenses:
Investment advisory fees -- Note B ......... 2,921,403
Custodian fees ............................. 148,997
Registration fees .......................... 12,785
Audit fees ................................. 8,250
Insurance expense .......................... 5,969
Directors' fees -- Note B .................. 5,000
Printing expense ........................... 2,750
Transfer agent fees ........................ 1,650
Legal fees ................................. 1,429
Other ...................................... 360
--------------
Total Expenses ........................... 3,108,593
--------------
Net Investment Income ...................... 7,757,086
==============
Realized and Unrealized Gain/(Loss)
on Investments -- Note D
Net realized gain on investments ........... 13,937,145
Net change in unrealized appreciation
of investments ........................... 202,261,589
--------------
Net Realized and Unrealized Gain
on Investments ........................... 216,198,734
--------------
Net Increase in Net Assets Resulting
from Operations .......................... $ 223,955,820
==============
See notes to financial statements.
--------------------------------------------------------------------------------
6
<PAGE>
The Guardian Stock Fund, Inc. - 2
--------------------------------------------------------------------------------
The Guardian Stock Fund, Inc.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
June 30, 1995 December 31,
(Unaudited) 1994
------------- ------------
<S> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS
From Operations:
Net investment income $ 7,757,086 $ 14,181,215
Net realized gain on investments 13,937,145 18,979,488
Net change in unrealized appreciation/(depreciation) of investments 202,261,589 (45,558,052)
-------------- --------------
Net Increase/(Decrease) in Net Assets Resulting from Operations 223,955,820 (12,397,349)
-------------- --------------
Distributions to Shareholder:
Net investment income -- (14,152,347)
Realized gain from investments -- (31,757,209)
-------------- --------------
Total Distribution to Shareholders -- (45,909,556)
-------------- --------------
From Capital Share Transactions:
Net increase in net assets from capital share transactions -- Note E 88,043,130 228,183,927
-------------- --------------
Net Increase in Net Assets 311,998,950 169,877,022
Net Assets:
Beginning of period 1,038,991,220 869,114,198
-------------- --------------
End of period* $1,350,990,170 $1,038,991,220
============== ==============
* Includes undistributed net investment income of: $7,527,379 $80,253
</TABLE>
See notes to financial statements.
--------------------------------------------------------------------------------
7
<PAGE>
The Guardian Stock Fund, Inc. - 2
--------------------------------------------------------------------------------
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 ............. $27.33 $29.00 $25.52 $23.28 $17.85 $21.39 $19.18 $16.35 $17.15 $15.40 $11.96
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment
operations
Net investment
income .............. 0.19 0.40 0.58 0.48 0.63 0.69 0.84 0.52 0.33 0.24 0.26
Net realized and
unrealized gain/
(loss) on invest-
ments .............. 5.46 (0.77) 4.47 3.97 5.74 (3.13) 3.61 2.80 0.06 2.32 3.51
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net increase/
(decrease) from
investment
operations ......... 5.65 (0.37) 5.05 4.45 6.37 (2.44) 4.45 3.32 0.39 2.56 3.77
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Distributions to
shareholders
Dividends from net
investment
income ............. -- (0.40) (0.59) (0.48) (0.64) (0.71) (0.90) (0.49) (0.43) (0.22) (0.29)
Distributions from
net realized gain .. -- (0.90) (0.98) (1.73) (0.30) (0.39) (1.34) -- (0.76) (0.59) (0.04)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions ... -- (1.30) (1.57) (2.21) (0.94) (1.10) (2.24) (0.49) (1.19) (0.81) (0.33)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of
period ................ $32.98 $27.33 $29.00 $25.52 $23.28 $17.85 $21.39 $19.18 $16.35 $17.15 $15.40
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total return* ............ 20.67% (1.27)% 19.96% 20.07% 35.96% (11.85)% 23.55% 20.37% 1.87% 17.10% 32.01%
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Ratios/supplemental data:
Net assets, end of
period (000's
omitted) ........... $1,350,990 $1,038,991 $869,114 $537,354 $380,962 $256,039 $269,950 $172,900 $139,437 $66,081 $21,875
Ratio of expenses to
average net
assets ............. 0.53%** 0.53% 0.54% 0.55% 0.56% 0.57% 0.57% 0.61% 0.61% 0.75% 1.00%
Ratio of net invest-
ment income to
average net
assets ............. 1.33%** 1.49% 2.20% 2.14% 3.07% 3.66% 4.13% 2.88% 2.08% 2.00% 2.55%
Ratio of expenses
subsidized by
GISC ............... -- -- -- -- -- -- -- -- -- -- 0.10%
Portfolio turnover
rate ............... 28% 53% 45% 62% 51% 54% 38% 71% 37% 36% 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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<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
--------------------------------------------------------------------------------
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)
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
--------------------------------------------------------------------------------
10
<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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11
<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.
--------------------------------------------------------------------------------
12
