<PAGE> 1
- ----------------------------------------------------------
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INVESTMENT ADVISER AND MANAGER
Cardinal Management Corp.
155 East Broad Street
Columbus, Ohio 43215
DISTRIBUTOR
The Ohio Company
155 East Broad Street
Columbus, Ohio 43215
TRANSFER AGENT AND DIVIDEND PAYING AGENT
Cardinal Management Corp.
215 East Capital Street
Columbus, Ohio 43215
CUSTODIAN
The Fifth Third Bank
38 Fountain Square Plaza
Cincinnati, Ohio 45263
LEGAL COUNSEL
Baker & Hostetler
65 East State Street
Columbus, Ohio 43215
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
Two Nationwide Plaza
Columbus, Ohio 43215
------------------------
This report has been prepared for the information of shareholders of Cardinal
Balanced Fund and is not authorized for distribution to prospective investors
unless preceded or accompanied by an effective Prospectus.
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CARDINAL FUNDS [LOGO]
CARDINAL
BALANCED
FUND
----------------------------------
SEMI-ANNUAL REPORT
----------------------------------
MARCH 31, 1995
THE OHIO COMPANY
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<PAGE> 2
DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------
Each day brings new challenges, and the past six months have been no exception.
During the first half of our fiscal year, we witnessed the stabilization of
interest rates, improved corporate profitability, record highs for the stock
market and moderate inflation. Our outlook for the next six months calls for a
continuation of this favorable investment environment.
Against this backdrop, assets invested in mutual funds continued to rise.
According to recent industry studies, about one-fourth of Americans own mutual
funds today. Most cite investing for retirement and college education as their
primary goals. Over eight out of ten mutual fund investors rely upon a financial
advisor for mutual fund advice.
As a shareholder of Cardinal Balanced Fund, your investment seeks to maximize
current income and long-term growth of both capital and income. We remain
dedicated to achieving these objectives and will continue to work hard on your
behalf.
The challenges Cardinal Balanced Fund faces today seem more exciting than ever.
We have a sound operations staff, a strong portfolio management team, dedicated
employees and an excellent shareholder base. By maintaining our focus on
providing consistent performance and quality service, we hope to meet your
investment needs in the years to come.
Thank you for your investment in Cardinal Balanced Fund.
/S/ Walter R. Chambers
Walter R. Chambers
Chairman
/S/ Frank W. Siegel
Frank W. Siegel
President
1
<PAGE> 3
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MESSAGE FROM THE FUND'S PORTFOLIO MANAGER
On behalf of the Cardinal Balanced Fund Trustees and Officers, we are pleased to
present our March 31, 1995 Semi-Annual Report which contains financial
statements, including the portfolio of investments.
What a difference a year makes! The first three months of 1995 have been as
tranquil for financial markets as 1994 was turbulent. The first half of our
fiscal year, which ended on March 31, 1995, witnessed the full breadth of this
spectrum and demonstrated very vividly the importance of patience and
perseverance to succeeding in financial markets.
We are pleased to report that Cardinal Balanced Fund weathered this period in
good shape. Our rate of return on net asset value for the six months ended March
31, 1995 was 5.6%. This compares favorably with the average for balanced funds
as tracked by Lipper Analytical Services, Inc. which returned 5.0%.
As a balanced fund, Cardinal Balanced Fund is required to hold at least 25% of
its assets in senior fixed-income securities. As interest rates were rising
during 1994, this impacted us negatively. When we wrote to you last fall, we
were anticipating improvement in this area but the speed and magnitude of the
recovery has been a welcome surprise. As for the next six months, further
declines in interest rates are possible, but it is much more of a neutral
proposition at this point. Furthermore, it would not be surprising if the more
complacent psychology currently in the marketplace were to be tested.
The equity markets have been propelled to new highs in the first three months of
1995, aided by the decline in interest rates and surging corporate
profitability. Our equity holdings have had a cyclical orientation and have been
posting impressive results due to the strength in the economy. While this
positioning has generally aided our performance, we, like the managements of
many of these companies, are somewhat frustrated that the stocks have not
reacted better to the record setting results being reported. A tug-of-war is
currently being played out in the marketplace centering on the sustainability of
the current economic expansion. Cyclicals and other economically sensitive
issues are caught squarely in the middle. These uncertainties should resolve
themselves over the next six months and while we are not likely to abandon our
positions, we may reduce our exposures somewhat as events unfold. We continue to
seize opportunities to enhance our yield as they present themselves with an eye
toward continuing to grow our dividend. Dividend increases from our portfolio
holdings are also more plentiful and represent a trend that we expect to
continue.
As always, we appreciate your support, and will continue our efforts diligently
on your behalf as we look forward to a profitable 1995.
/S/ Barry McMahon
Barry
McMahon
Vice
President
As portfolio manager for Cardinal Balanced Fund, Barry McMahon is primarily
responsible for the day-to-day management of the Fund's portfolio. Mr. McMahon
has 7 years of investment management experience and has been the portfolio
manager for Cardinal Balanced Fund since its inception in 1993.
2
<PAGE> 4
CARDINAL BALANCED FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (MARKET VALUE IN THOUSANDS)
- --------------------------------------------------------------------------------
MARCH 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/ MARKET
SHARES VALUE
------- ------
<S> <C> <C>
COMMON STOCK 53.54%
American Express Company................................................................... 8,000 $ 279
Arco Chemical Company...................................................................... 5,000 223
Banc One Corporation....................................................................... 8,000 228
Burlington Northern Incorporated........................................................... 5,000 297
Cabot Medical Corporation*................................................................. 12,500 48
Cinergy Corporation........................................................................ 10,000 249
Commerce Bancshares Inc.................................................................... 5,250 161
Dow Chemical Company....................................................................... 4,500 329
Excel Industries Incorporated.............................................................. 15,000 193
Family Dollar Stores....................................................................... 15,000 191
GTE Corporation............................................................................ 10,000 332
General Motors Corporation................................................................. 5,000 221
Georgia-Pacific Corporation................................................................ 4,000 319
Houston Industries Incorporated............................................................ 5,000 191
Kemper Corporation......................................................................... 6,000 242
Maxicare Healthplans, Inc.*................................................................ 11,019 191
MCI Communications Corp.................................................................... 10,000 206
Mellon Bank Corporation.................................................................... 6,000 245
Monsanto Company........................................................................... 3,500 281
Mutual Risk Management..................................................................... 7,800 217
Mylan Laboratories, Inc.................................................................... 4,000 127
National Semiconductor Co.*................................................................ 5,000 88
J.C. Penney's Co. Incorporated............................................................. 6,000 269
Progress Software Corporation*............................................................. 4,000 208
Reliastar Financial Corp................................................................... 1,000 34
SHL Systemhouse*........................................................................... 10,000 60
Southern Indiana Gas and Electric.......................................................... 6,000 173
Spartan Motors Incorporated*............................................................... 12,000 128
Structural Dynamics*....................................................................... 30,000 263
Tribune Company............................................................................ 5,000 276
Trinova Corporation........................................................................ 6,000 184
Universal Foods Corp....................................................................... 4,000 136
VFC Corporation............................................................................ 4,000 213
Willamette Industries Incorporated......................................................... 6,000 327
------
TOTAL COMMON STOCK (COST $6,660)......................................................... 7,129
------
CONVERTIBLE PREFERRED STOCK 0.99%
Ford Motor Company, 8.40%, Series A........................................................ 1,500 132
------
TOTAL CONVERTIBLE PREFERRED STOCK (COST $154)............................................ 132
------
PREFERRED STOCK 2.54%
Chase Manhatten Corporation, 8.40%, Cumulative Series M.................................... 7,500 187
Enron Capital Resources, 9.00%, Series A, LP............................................... 6,000 151
------
TOTAL PREFERRED STOCK (COST $350)........................................................ 338
------
CONVERTIBLE CORPORATE BONDS 5.14%
Ashland Oil, Inc., 6.75%, due 7-01-2014.................................................... 150,000 142
Cabot Medical Co., 7.50%, due 3-01-1999.................................................... 100,000 83
Enserch Corp., 6.375%, due 4-01-2002....................................................... 150,000 138
Gran Care Inc., 6.50%, due 1-15-2003....................................................... 100,000 87
Masco Corporation, 5.25%, due 2-15-2012.................................................... 100,000 86
VLSI Technology, 7.00%, due 5-01-2012...................................................... 150,000 148
------
TOTAL CONVERTIBLE CORPORATE BONDS (COST $741)............................................ 684
------
</TABLE>
*Non-income producing
(continued)
3
<PAGE> 5
CARDINAL BALANCED FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
MARCH 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/ MARKET
SHARES VALUE
------- -------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS 9.15%
GNMA I # 368080, 7.00%, due 11-15-2008.................................................... 274,418 $ 267
GNMA I # 251959, 7.50%, due 6-15-2023..................................................... 262,393 254
GNMA II # 1213, 7.50%, due 6-20-2023...................................................... 351,894 337
GNMA II # 1268, 8.00%, due 7-20-2023...................................................... 366,412 360
-------
TOTAL U.S. GOVERNMENT AGENCIES (COST $1,316)............................................ 1,218
-------
CORPORATE BONDS 16.80%
American Airlines, Series 91A, 10.18%, due 1-02-2013...................................... 250,000 253
Consumers Power Co., 7.50%, due 6-01-2002................................................. 300,000 296
Dole Foods Inc., 7.00%, due 5-15-2003..................................................... 200,000 186
First USA Bank, Wilmington, 5.75%, due 1-15-1999.......................................... 300,000 280
General Motors Acceptance Corp., 7.00%, due 9-15-2002..................................... 200,000 190
Great Atlantic & Pacific Tea Co., 7.70%, due 1-15-2004.................................... 300,000 269
Pulte Homes Corp., 7.00%, due 12-15-2003.................................................. 150,000 137
Strawbridge & Clothiers, 6.625%, due 10-15-2003........................................... 200,000 180
Tele-Communications Inc., 7.25%, due 8-01-2005............................................ 250,000 230
Time Warner, 7.25%, due 9-01-2008......................................................... 250,000 216
-------
TOTAL CORPORATE BONDS (COST $2,403)..................................................... 2,237
-------
COMMERCIAL PAPER 11.64%
IBM Credit Corporation, 5.91%, due 4-03-95................................................ 400,000 400
ITT Financial Corporation, 5.93%, due 4-03-95............................................. 400,000 400
Ford Motor Credit Corporation, 5.96%, due 4-06-95......................................... 350,000 350
American General Finance Co., 5.96%, due 4-10-95.......................................... 400,000 400
-------
TOTAL COMMERCIAL PAPER (COST $1,550).................................................... 1,550
-------
TOTAL INVESTMENTS (COST $13,174) 99.80%................................................. $13,288
========
</TABLE>
GNMA -- Government National Mortgage Association
Cost also represents cost for Federal income tax purposes.
See accompanying notes to financial statements.
4
<PAGE> 6
CARDINAL BALANCED FUND
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STATEMENT OF ASSETS & LIABILITIES (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
- --------------------------------------------------------------------------------
MARCH 31, 1995 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investments in securities, at value (cost $13,174)............................... $ 13,288
Cash............................................................................. 45
Interest receivable.............................................................. 73
Dividends receivable............................................................. 11
Receivable for Fund shares sold.................................................. 13
Other assets..................................................................... 37
--------
Total assets........................................................... 13,467
--------
LIABILITIES
Payable for Fund shares redeemed................................................. 114
Accrued investment management, shareholder service, accounting and transfer agent
fees (note 3).................................................................. 17
Other accrued expenses........................................................... 21
--------
Total liabilities...................................................... 152
--------
COMMITMENTS AND CONTINGENCIES (NOTE 4)
NET ASSETS -- applicable to 1,301,433 outstanding no par value shares of
beneficial interest (unlimited number of shares authorized).................... $ 13,315
========
NET ASSET VALUE PER SHARE........................................................ $ 10.23
========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 7
CARDINAL BALANCED FUND
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STATEMENT OF OPERATIONS (AMOUNTS IN THOUSANDS)
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SIX MONTHS ENDED MARCH 31, 1995 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends........................................................................ $ 119
Interest......................................................................... 239
-----
Total income................................................................ 358
-----
EXPENSES:
Investment management fees (note 3).............................................. 50
Transfer agent fees and expenses (note 3)........................................ 13
Shareholder service fees (note 3)................................................ 17
Accounting fees (note 3)......................................................... 2
-----
Total affiliated expenses.............................................. 82
-----
Custodian fees................................................................... 6
Professional fees................................................................ 6
Reports to shareholders.......................................................... 11
Directors' fees.................................................................. 6
Registration fees................................................................ 6
Other expenses................................................................... 11
-----
Total non-affiliated expenses.......................................... 46
-----
Total expenses......................................................... 128
-----
Net investment income.................................................. 230
-----
REALIZED LOSS AND UNREALIZED GAIN ON INVESTMENTS (NOTE 2):.......................
Net realized loss from security transactions..................................... (14)
Increase in unrealized gain on investments....................................... 499
-----
Net realized loss and increase in unrealized gain on investments............ 485
-----
Net increase in net assets from operations.................................. $ 715
=====
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 8
CARDINAL BALANCED FUND
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STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED MARCH 31, 1995 (UNAUDITED)
AND FOR THE YEAR ENDED SEPTEMBER 30, 1994
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
1995 1994
---------- -----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income........................................... $ 230 $ 335
Net realized gain (loss) from security transactions............. (14) 158
Increase (decrease) in unrealized gain on investments........... 499 (462)
---------- -----------------
Net increase in net assets from operations................. 715 31
---------- -----------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Distributions of net investment income ($.175 and $.240 per
share, respectively).......................................... (238) (333)
Distribution of net realized gains from security transactions
($.035 and $.028 per share, respectively)..................... (49) (36)
---------- -----------------
Total distributions to shareholders........................ (287) (369)
---------- -----------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5):
Proceeds from sales of Fund shares.............................. 581 5,251
Net asset value of Fund shares issued in connection with
reinvestment of distributions to shareholders................. 261 335
---------- -----------------
842 5,586
Cost of Fund shares redeemed.................................... (1,928) (2,086)
---------- -----------------
Increase (decrease) in net assets derived from capital
share transactions....................................... (1,086) 3,500
---------- -----------------
Net increase (decrease) in net assets...................... (658) 3,162
NET ASSETS -- beginning of period............................... 13,973 10,811
---------- -----------------
NET ASSETS -- end of period (undistributed net investment income
of $7 and $15, respectively).................................. $ 13,315 $13,973
========== ==================
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 9
CARDINAL BALANCED FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1995 (UNAUDITED)
(1) -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cardinal Balanced Fund (the "Fund") is one of two portfolios of The Cardinal
Group (the "Group"), a diversified open-end management investment company
established as an Ohio Business Trust on March 23, 1993. The Group currently
consists of Cardinal Aggressive Growth Fund and Cardinal Balanced Fund. Before
June 24, 1993 the Fund had no operations other than those relating to
organizational matters, including the issuance of 5,000 shares of beneficial
interest for cash at $10.00 per share on June 4, 1993 to Cardinal Management
Corp. ("CMC"), the Group's investment adviser. The following is a summary of
significant accounting policies followed by the Fund in preparation of its
financial statements. The policies are in conformity with generally accepted
accounting principles for investment companies.
Security Valuation -- Investments listed or traded on a national securities
exchange are valued at the last sale price or, if there has been no recent sale,
at the last bid price. Investments traded in the over-the-counter market are
valued at either the mean between the bid and ask prices or the last sale price.
If no quotations are available, portfolio securities are valued in good faith by
the Board of Trustees to reflect their fair value.
Security Transactions and Investment Income -- Security transactions are
accounted for on the trade date and dividend income is recorded on the
ex-dividend date. Interest income is recorded on the accrual basis and includes,
when applicable, the pro rata amortization of premium or accretion of discount.
In determining the net realized gain or loss on securities sold, the cost of the
securities will be determined by the first-in, first-out (FIFO) basis. It is the
Group's policy for its Custodian, or a third-party bank, to take possession of
all securities pledged as collateral for repurchase agreements and monitor the
market value of the collateral to ensure that it remains sufficient to cover the
repurchase agreements.
Deferred organizational cost -- Costs incurred with the organization and
registration of the Fund have been deferred and are being amortized on a
straight-line basis over a 60 month period from the commencement of public
offering of its shares. In the event that any of the initial shares of the Fund
are redeemed by the Fund's investment adviser or any subsequent holders thereof
during the 60 month amortization period, the Fund will reduce the redemption
proceeds otherwise payable by any unamortized organizational costs of the Fund
in the same proportion as the number of initial shares of the Fund being
redeemed bears to the number of initial shares of the Fund outstanding at the
time of redemption.
Distributions to Shareholders -- Distributions and dividends will be recorded on
the record date. The Fund intends to declare income dividends quarterly and any
capital gain distributions annually.
Federal Income Tax -- The Fund intends to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to make
sufficient distributions of taxable income and capital gains within the required
time to relieve it from all, or substantially all, Federal income taxes.
(continued)
8
<PAGE> 10
CARDINAL BALANCED FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
MARCH 31, 1995 (UNAUDITED)
(2) -- PURCHASES AND SALES OF SECURITIES
The cost of purchases and proceeds from sales of investment securities during
the six months ended March 31, 1995 aggregated $2,361,088 and $2,882,512,
respectively.
During the six months ended March 31, 1995 the Fund realized on a FIFO cost
basis a net capital gain of $13,649 for both book and tax purposes.
As of March 31, 1995, for both book and tax purposes, gross unrealized gains and
gross unrealized losses on investment securities were $777,647 and $663,915,
respectively; resulting in a net unrealized gain of $113,732.
(3) -- TRANSACTIONS WITH AFFILIATES
As investment adviser for the Fund, CMC, an affiliated company, is allowed an
annual fee of 0.75% of the average daily net assets of the Fund. CMC has agreed
that if the aggregate expenses of the Fund, as defined, for any fiscal year
exceed the expense limitation of any state having jurisdiction over the Fund,
CMC will refund to the Fund, or otherwise bear, such excess. This limitation did
not affect the calculation of the management fee during the six months ended
March 31, 1995. CMC also serves the Fund as transfer agent and fund accountant.
Under the terms of the Group's Transfer Agency and Fund Accounting Agreement,
the transfer agent is entitled to receive fees based on a monthly charge per
shareholder account plus out-of-pocket expenses and the fund accountant is
entitled to receive fees based on a percentage of the average net assets of the
Fund. For the six months ended March 31, 1995 the Fund paid or accrued $13,310
and $2,414 for transfer agent and fund accounting services, respectively.
The Ohio Company ("TOC") serves the Group as distributor. TOC receives fees from
the Fund for providing services under the Distribution and Shareholder Service
Plan (the "Plan") pursuant to Rule 12b-1 of the Investment Company Act of 1940.
Under the Plan, the Fund pays TOC a fee not to exceed, on an accrual basis,
0.25% of the average daily net assets of the Fund for payments it makes to
banks, broker/dealers, including TOC, and other institutions for providing
shareholder services. The Fund paid or accrued shareholder service fees of
$16,755 for the six months ended March 31, 1995. The Ohio Company reported to
the Fund that it had received commissions after discounts to dealers from the
sale of shares of the Fund of $29,414 for the six months ended March 31, 1995.
(4) -- COMMITMENTS AND CONTINGENCIES
The Fund has an available $2,000,000 line of credit with its custodian, Fifth
Third Bank, which was unused at March 31, 1995. When used, borrowings under this
arrangement are secured by portfolio securities and can be used only for short
term needs of the Fund. No compensating balances are required and the
arrangement bears an interest rate of 106% of the custodian's prime lending
rate.
(continued)
9
<PAGE> 11
CARDINAL BALANCED FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
MARCH 31, 1995 (UNAUDITED)
(5) -- CAPITAL STOCK
At March 31, 1995, there were an unlimited number of no par value shares of
capital stock and the capital amounts were as follows:
<TABLE>
<S> <C>
Paid in capital............................................................... $13,124,414
Accumulated net realized gain on investments.................................. 70,475
Unrealized gain on investments................................................ 113,732
Undistributed net investment income........................................... 6,724
-----------
Net assets............................................................... $13,315,345
============
</TABLE>
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
1995 1994
---------- -------------
<S> <C> <C>
Shares sold.......................................................... 59,239 519,358
Shares issued in connection with reinvestment of distributions
to shareholders.................................................... 26,999 33,364
---------- -------------
86,238 552,722
Shares repurchased................................................... (196,099) (208,912)
---------- -------------
Net increase (decrease).............................................. (109,861) 343,810
Shares outstanding:
Beginning of period.................................................. 1,411,294 1,067,484
---------- -------------
End of period........................................................ 1,301,433 1,411,294
========== ===========
</TABLE>
10
<PAGE> 12
CARDINAL BALANCED FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for each share of capital stock outstanding throughout each
period:
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JUNE 24, 1993*
ENDED YEAR ENDED THROUGH
MARCH 31, SEPTEMBER 30, SEPTEMBER
1995 1994 30, 1993
---------- ---------------- ----------------
<S> <C> <C> <C>
Net Asset Value, beginning............................. $ 9.90 $ 10.13 $ 10.00
---------- ---------------- ----------------
Income from investment operations:
Net investment income................................ 0.18 0.23 0.02
Net realized and unrealized gain (loss) on
securities......................................... 0.37 (0.20) 0.12
---------- ---------------- ----------------
Total from investment operations....................... 0.55 0.03 0.14
---------- ---------------- ----------------
Less distributions:
Dividends............................................ (0.18) (0.23) (0.01)
Capital gain distribution............................ (0.04) (0.03) 0.00
---------- ---------------- ----------------
Total distributions.................................... (0.22) (0.26) (0.01)
---------- ---------------- ----------------
Net Asset Value, ending................................ $ 10.23 $ 9.90 $ 10.13
========= =============== ===============
Ratios/Supplemental Data:
Total return (aggregate return for period)............. 5.59% 0.37% 1.40%
========= =============== ===============
Net assets, ending (000)............................... $ 13,315 $ 13,973 $ 10,811
========= =============== ===============
Ratio of expenses to average net assets................ 1.92% 2.07% 0.70%
========= =============== ===============
Ratio of net investment income to average net assets... 3.44% 2.44% 0.35%
========= =============== ===============
Portfolio turnover rate................................ 10.62% 59.09% 60.67%
========= =============== ===============
</TABLE>
See accompanying notes to financial statements.
*Commencement of Operations
11
<PAGE> 13
[THIS PAGE LEFT BLANK INTENTIONALLY]
<PAGE> 14
[LOGO]
THE CARDINAL FUND INC.
CARDINAL GOVERNMENT SECURITIES TRUST
CARDINAL TAX EXEMPT MONEY TRUST
CARDINAL GOVERNMENT OBLIGATIONS FUND
CARDINAL BALANCED FUND
CARDINAL AGGRESSIVE GROWTH FUND
155 E. Broad St. Columbus, Ohio 43215
<TABLE>
<S> <C>
New Accounts and Toll-free Lines
General Information: In Ohio 800-282-9446
(614) 464-5511 Outside Ohio 800-848-7734
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000899580
<NAME> CARDINAL BALANCED FUND
<SERIES>
<NUMBER> 2
<NAME> CARDINAL BALANCED FUND
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-START> OCT-01-1994
<PERIOD-END> MAR-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 13,288
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 142
<ASSETS-OTHER> 37
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 13,467
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 152
<TOTAL-LIABILITIES> 152
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 11,823
<SHARES-COMMON-STOCK> 1,301
<SHARES-COMMON-PRIOR> 1,411
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (7)
<ACCUMULATED-NET-GAINS> 70
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 114
<NET-ASSETS> 13,315
<DIVIDEND-INCOME> 119
<INTEREST-INCOME> 239
<OTHER-INCOME> 0
<EXPENSES-NET> 128
<NET-INVESTMENT-INCOME> 230
<REALIZED-GAINS-CURRENT> (14)
<APPREC-INCREASE-CURRENT> 499
<NET-CHANGE-FROM-OPS> 715
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 238
<DISTRIBUTIONS-OF-GAINS> 49
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 581
<NUMBER-OF-SHARES-REDEEMED> 1,928
<SHARES-REINVESTED> 261
<NET-CHANGE-IN-ASSETS> (658)
<ACCUMULATED-NII-PRIOR> 335
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (15)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 50
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 128
<AVERAGE-NET-ASSETS> 13,457
<PER-SHARE-NAV-BEGIN> 9.90
<PER-SHARE-NII> 0.18
<PER-SHARE-GAIN-APPREC> 0.37
<PER-SHARE-DIVIDEND> 0.18
<PER-SHARE-DISTRIBUTIONS> 0.04
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.23
<EXPENSE-RATIO> 1.92
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
