<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
Aggressive Growth 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
AGGRESSIVE
GROWTH
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 Aggressive Growth Fund, your investment seeks
appreciation of capital. We remain dedicated to achieving these objectives and
will continue to work hard on your behalf.
The challenges Cardinal Aggressive Growth 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 Aggressive Growth Fund.
<TABLE>
<S> <C> <C>
/s/ Walter R. Chambers /s/ Frank W. Siegel
Walter R. Chambers Frank W. Siegel
Chairman President
</TABLE>
1
<PAGE> 3
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MESSAGE FROM THE FUND'S PORTFOLIO MANAGER
On behalf of Cardinal Aggressive Growth Fund, we welcome and extend to our
shareholders our appreciation for their support during the first half of our
fiscal year.
The first two quarters of the year could not have been more distinct, with the
first quarter a bore and the second the most exciting in recent memory. Against
a backdrop of domestic political change, international political turmoil and
domestic derivative demons it was truly a good period of equity performance.
We began the year with a continuation of mixed economic signals which
accompanied the series of Federal Reserve interest rate hikes. Such mixed
economic data, the Mexican peso's collapse and the Orange County derivative
debacle kept a lid on equity performance until mid-November. By that point, the
economic data appeared to become more biased toward slower growth. In turn,
interest rates began to stabilize and the Fed signaled that it was satisfied
with its outlook for the economy. This combination of events lit a fire under
equities, which rallied strongly through March, led by the technology and large,
blue chip growth issues.
We believe what we have witnessed in the fiscal year to date is the business
cycle progressing through its normal stages. Following an extended run of
moderate economic growth, it had become increasingly clear that the economy, by
early 1995, was searching for a rest stop. As is typical in the latter stages of
the business cycle, capacity utilization had increased, labor markets became
somewhat tighter and other manufacturing costs began to rise. Housing and auto
sales began to weaken and talk of inflation, following a strong last quarter of
growth in 1994, turned quickly to future economic weakness. We continue to
believe that although economic growth may have peaked late in 1994, future
activity will remain strong enough to generate significant levels of corporate
earnings through 1995. These earnings, when coupled with stability in the fixed
income markets, should continue to push equities higher, especially late in
calendar 1995.
The equity rally that drove stock indices to a string of new records in the
first quarter of 1995 was a powerful, but somewhat narrow surge. Technology
issues, especially the semiconductor and telecommunications equipment names and
the blue chip growth stocks lead the charge to record highs. As fears that
economic growth had peaked were substantiated by statistics, investors abandoned
marginal issues and headed directly to those issues that would continue to
generate strong growth. Blue chip growth issues, such as the pharmaceuticals and
the consumer nondurable stocks, quickly became investor favorites, after being
both unloved and underowned for an extended period. Technology stocks, with
their propensity for earnings strength became more in demand. However, the list
of rallying tech names became increasingly narrow, as investors focused on the
strongest earners. Stocks that merely met earnings expectations were slighted,
while those posting exceedingly strong numbers were bid sharply higher.
Cardinal Aggressive Growth Fund remained committed, throughout the period, to
those equities which we believed to be representative of the Fund's objectives.
Both individually and in a portfolio sense, these issues were chosen primarily
because of their potential to generate superior future earnings growth. This
growth is expected to be achieved in a number of ways, including exploitation of
new technology and/or economic conditions through intelligent management. While
we remain rooted to fundamental analysis, we continue to recognize the power of
institutional investors to influence equity prices meaningfully. In adherence to
Fund objectives, we remain invested in three major market sectors:
healthcare/biotech, telecommunications equipment and software/data management.
The healthcare/biotech sector enjoyed a very strong resurgence in the Fund
year's first half. After investors were driven away in droves from the
healthcare issues in 1994 by the threat of government mandated reform, these
stocks rebounded smartly, driven by two factors. First, mandated reform threats
faded last fall. Second, fears of slower economic growth transformed the more
predictable earnings growth rates of the healthcare equities into desired
holdings again. We believe that reform within the healthcare system was already
well underway before the specter of mandated change was raised. While most
healthcare companies had already begun to change the way
2
<PAGE> 4
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they ran their businesses, most investment pundits quickly pronounced the sector
dead, as the reform movement gained attention. We continued to believe that most
firms in the industry would be able to adapt their business practices and
thereby remain strongly profitable. As change in the healthcare delivery system
has progressed through natural market forces, we believe that these firms have
shown the ability to profitably adapt. The stocks have responded well to this
"natural reform", particularly the pharmaceutical and managed care firms owned
by the Fund. Even the much maligned biotech sector, with its history of
volatility, had much improved performance during the period, as new products
worked their way through the approval process.
The telecommunications sector had yet another strong period of performance. New
forms of communications seem to be appearing every day. The "Dick Tracy"
wristphone, that not so long ago appeared futuristic, is here today. One no
longer needs to be tethered to a telephone wire to communicate. Technologic
advances have made worldwide "wireless" communications a reality. We continue to
remain invested in this segment through ownership of paging, cellular telephone
and telecommunications equipment equities. We believe that the telecomm industry
remains in the very early stages of important positive change.
Computers and computing power continue to be the driving force in most of the
equities that we explore for possible investment. It is nearly impossible to
find a firm that has not utilized the power of computing to either create,
expand or improve its business. The advances in communications, drug research
and in general business productivity would be greatly muted without computer
power. As such, we continue to believe that the software and data management
sectors represent extremely interesting opportunities for Fund investment.
Our dedication to Fund objectives continues to result in positive Fund
performance. For the six months ended March 31, 1995, Cardinal Aggressive Growth
Fund advanced 6.74%. For the twelve months ended March 31, 1995, the Fund
advanced 10.29%. We remain dedicated to research and investment in those firms
that embody those attributes that will inspire future earnings growth. In
addition, we remain cognizant of the market's increasingly reactive nature. As a
result, we believe that we will be successful in building shareholder wealth,
over time.
<TABLE>
<S> <C>
/s/ Timothy C. McCombs
Timothy C. McCombs
Vice President
</TABLE>
As a Portfolio Manager for Cardinal Aggressive Growth Fund, Timothy C. McCombs
is primarily responsible for the day-to-day management of the Fund's Portfolio.
Mr. McCombs has 8 years of investment management experience and has been the
portfolio manager for Cardinal Aggressive Growth Fund since its inception in
1993.
3
<PAGE> 5
CARDINAL AGGRESSIVE GROWTH FUND
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STATEMENT OF INVESTMENTS (MARKET VALUE IN THOUSANDS)
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MARCH 31, 1995 (UNAUDITED)
COMMON STOCKS 87.81%
<TABLE>
<CAPTION>
FACE/ MARKET
SHARES VALUE
------- -------
<S> <C> <C>
ADVANCED MEDICAL DEVICES 2.50%
Biomet, Inc.*.................................................... 14,000 $ 236
-------
BIO TECHNOLOGY 5.29%
Alkermes, Inc.*.................................................. 6,000 17
Cephalon, Inc.*.................................................. 5,000 35
Cytel Corporation*............................................... 10,000 38
Isis Pharmaceuticals*............................................ 10,000 66
Magainin Pharmaceuticals*........................................ 10,000 45
Matrix Pharmaceuticals*.......................................... 14,000 165
Vertex Pharmaceuticals*.......................................... 10,000 135
-------
501
-------
BROADLINE RETAILERS 1.49%
Consolidated Stores Corp.*....................................... 7,000 141
-------
COMMUNICATIONS 13.83%
Airtouch Communications*......................................... 8,000 218
Arch Communications Group*....................................... 16,000 312
Broad Band Technologies*......................................... 5,000 126
DSC Communications Corp.*........................................ 4,000 130
General DataComm Industries*..................................... 6,000 89
MFS Communications Co., Inc.*.................................... 7,000 246
Metricom, Inc.*.................................................. 9,000 133
Motorola, Inc.................................................... 1,000 55
-------
1,309
-------
COMPUTERS/INFORMATION 2.92%
Compaq Computer Corp.*........................................... 8,000 276
-------
CONSUMER SERVICES 4.84%
Banta Corporation................................................ 6,000 198
Block, H&R, Inc.*................................................ 6,000 260
-------
458
-------
</TABLE>
* Non-income producing
(continued)
4
<PAGE> 6
CARDINAL AGGRESSIVE GROWTH FUND
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STATEMENT OF INVESTMENTS (CONTINUED)
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MARCH 31, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED)
<TABLE>
<CAPTION>
FACE/ MARKET
SHARES VALUE
-------- -------
<S> <C> <C>
DIVERSIFIED FINANCIAL SERVICES 2.54%
Bear Stearns Companies, Inc..................................... 13,000 $ 240
-------
ENTERTAINMENT 1.54%
Telecommunications, Inc. A*..................................... 6,950 146
-------
FOOD 2.25%
Lancaster Colony Corp........................................... 6,000 213
-------
FOOD RETAILERS 2.05%
Albertson's, Inc................................................ 6,000 193
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HEALTH-CARE PROVIDERS 11.99%
Community Psychcenters*......................................... 12,000 154
Humana, Inc.*................................................... 15,000 384
Integrated Health Services...................................... 5,000 189
Mariner Health Group, Inc.*..................................... 7,500 145
Maxicare Healthplans, Inc.*..................................... 15,000 261
-------
1,133
-------
INTEGRATED OILS 5.37%
Royal Dutch Petroleum........................................... 2,000 240
Triton Energy Corp.............................................. 7,000 268
-------
508
-------
INSURANCE 1.07%
Kemper Corp..................................................... 2,500 101
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MEDICAL SUPPLIES 3.01%
Abbott Laboratories............................................. 8,000 285
-------
PHARMACEUTICALS 12.35%
Mylan Laboratories, Inc......................................... 10,000 318
Merck & Company................................................. 6,000 256
Pfizer Inc...................................................... 4,000 343
UpJohn Company.................................................. 7,000 250
-------
1,167
-------
</TABLE>
* Non-income producing
(continued)
5
<PAGE> 7
CARDINAL AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED)
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MARCH 31, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED)
<TABLE>
<CAPTION>
FACE/ MARKET
SHARES VALUE
-------- -------
<S> <C> <C>
SOFTWARE/PROCESSING 10.04%
Computer Assoc. Int'l, Inc.*.................................... 4,000 $ 237
Computer Sciences Corp.*........................................ 6,000 296
Gupta Corporation*.............................................. 10,000 110
Microsoft Corporation*.......................................... 2,000 142
Structural Dynamics*............................................ 16,000 140
Telescan, Inc.*................................................. 5,000 24
-------
949
-------
SOUTHERN BANKS 1.78%
Hibernia Corp. A................................................ 12,000 93
Premier Bancorp*................................................ 4,600 75
-------
168
-------
SPECIALTY RETAILERS 0.89%
Sun Television & Appliances..................................... 10,000 84
-------
TRUCKING 2.06%
Frozen Food Express............................................. 15,000 195
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TOTAL COMMON STOCKS (COST $8,039).......................... 8,303
-------
CORPORATE CONVERTIBLE BONDS 1.07%
Time Warner 8.75%, 1/10/15...................................... 100,000 101
-------
TOTAL CONVERTIBLE BONDS (COST $106)........................ 101
-------
REPURCHASE AGREEMENTS, FULLY COLLATERALIZED BY U.S. GOVERNMENT
OBLIGATIONS 7.40%
Fifth Third Bank, 5.85%, dated 3/28/95, due 4/04/95............. 300,000 300
Fifth Third Bank, 5.95%, dated 3/30/95, due 4/06/95............. 400,000 400
-------
TOTAL REPURCHASE AGREEMENTS (COST $700).................... 700
-------
TOTAL INVESTMENTS (COST $8,845) 96.28%..................... $ 9,104
======
</TABLE>
* Non-income producing
Cost also represents cost for Federal income tax purposes.
See accompanying notes to financial statements.
6
<PAGE> 8
CARDINAL AGGRESSIVE GROWTH FUND
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STATEMENT OF ASSETS & LIABILITIES (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
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MARCH 31, 1995 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investments in securities, at value (cost $8,845)................................ $ 9,104
Cash............................................................................. 191
Dividends receivable............................................................. 4
Interest receivable.............................................................. 3
Receivable for Fund shares sold.................................................. 11
Receivable for investment securities sold........................................ 207
Other assets..................................................................... 37
-------
Total assets................................................................ 9,557
-------
LIABILITIES
Payable for Fund shares redeemed................................................. 47
Accrued investment management, shareholder service, accounting and transfer agent
fees (Note 3).................................................................. 14
Other accrued expenses........................................................... 40
-------
Total liabilities........................................................... 101
-------
COMMITMENTS AND CONTINGENCIES (NOTE 4)
NET ASSETS -- applicable to 891,042 outstanding no par value shares of beneficial
interest (unlimited number of shares authorized)............................... $ 9,456
======
NET ASSET VALUE PER SHARE........................................................ $ 10.61
======
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 9
CARDINAL AGGRESSIVE GROWTH FUND
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STATEMENT OF OPERATIONS (AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
SIX MONTHS ENDED MARCH 31, 1995 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends................................................................... $ 31
Interest.................................................................... 26
-----
Total income.................................................... 57
-----
EXPENSES:
Investment management fees (note 3)......................................... 35
Transfer agent fees and expenses (note 3)................................... 13
Shareholder service fees (note 3)........................................... 11
Accounting fees (note 3).................................................... 2
-----
Total affiliated expenses....................................... 61
-----
Custodian fees.............................................................. 4
Professional fees........................................................... 18
Reports to shareholders..................................................... 12
Directors' fees............................................................. 6
Registration fees........................................................... 6
Other expenses.............................................................. 8
-----
Total non-affiliated expenses................................... 54
-----
Total expenses.................................................. 115
-----
Net loss from investment activities............................. (58)
-----
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (NOTE 2):
Net realized gain from security transactions................................ 265
Increase in unrealized gain on investments.................................. 406
-----
Net realized gain and increase in unrealized gain on
investments................................................... 671
-----
Net increase in net assets from operations...................... $ 613
=====
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 10
CARDINAL AGGRESSIVE GROWTH 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
MARCH YEAR ENDED
31, SEPTEMBER 30,
1995 1994
------- ---------------
<S> <C> <C>
FROM OPERATIONS:
Net loss from investment activities.................................... $ (58) $ (136)
Net realized gain from security transactions........................... 265 118
Increase (decrease) in unrealized gain on investments.................. 406 (444)
------- ---------------
Net increase (decrease) in net assets from operations................ 613 (462)
------- ---------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Distribution of net realized gains from security transactions ($.000
and $.035 per share, respectively)................................... 0 (30)
------- ---------------
Total distributions to shareholders.................................. 0 (30)
------- ---------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5):
Proceeds from sale of Fund shares...................................... 623 5,108
Net asset value of Fund shares issued in connection with reinvestment
of distributions to shareholders..................................... 0 30
------- ---------------
623 5,138
Cost of Fund shares redeemed........................................... (1,240) (1,506)
------- ---------------
Increase (decrease) in net assets derived from capital share
transactions...................................................... (617) 3,632
------- ---------------
Net increase (decrease) in net assets................................ (4) 3,140
NET ASSETS -- beginning of period...................................... 9,460 6,320
------- ---------------
NET ASSETS -- end of period (undistributed net investment loss of $213
and $113, respectively).............................................. $ 9,456 $ 9,460
====== ===============
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 11
CARDINAL AGGRESSIVE GROWTH FUND
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NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1995 (UNAUDITED)
(1) -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cardinal Aggressive Growth 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 is 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)
10
<PAGE> 12
CARDINAL AGGRESSIVE GROWTH 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 $3,493,869 and $4,998,107,
respectively.
During the six months ended March 31, 1995 the Fund realized on a FIFO cost
basis a net capital gain of $264,750 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 $406,228 and $146,480,
respectively; resulting in a net unrealized gain of $259,748.
(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 $12,737
and $1,857 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
$11,462 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 $31,583 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)
11
<PAGE> 13
CARDINAL AGGRESSIVE GROWTH 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.................................................................. $ 9,098,417
Accumulated net realized gain on investments..................................... 310,793
Unrealized gain on investments................................................... 259,748
Undistributed net investment loss................................................ (213,052)
---------------
Net assets.................................................................. $ 9,455,906
===============
</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..................................................... 61,450 499,598
Shares issued in connection with reinvestment of distributions
to shareholders............................................... 0 2,836
---------- ---------------
61,450 502,434
Shares repurchased.............................................. (121,846) (154,659)
---------- ---------------
Net increase (decrease)......................................... (60,396) 347,775
Shares outstanding:
Beginning of period............................................. 951,438 603,663
---------- ---------------
End of period................................................... 891,042 951,438
========== ===============
</TABLE>
12
<PAGE> 14
CARDINAL AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for each share of capital stock outstanding throughout each
period:
<TABLE>
<CAPTION>
PERIOD
FROM
JUNE
24,
1993*
SIX MONTHS THROUGH
ENDED YEAR ENDED SEPTEMBER
MARCH 31, SEPTEMBER 30,
1995 30, 1994 1993
---------- ---------- -------
<S> <C> <C> <C>
Net Asset Value, beginning.................................. $ 9.94 $ 10.47 $ 10.00
---------- ---------- -------
Income from investment operations:
Net investment loss....................................... (0.06) (0.13) (0.03)
Net realized and unrealized gain (loss) on securities..... 0.73 (0.36) 0.50
---------- ---------- -------
Total from investment operations............................ 0.67 (0.49) 0.47
---------- ---------- -------
Less distributions:
Capital gain distribution................................. 0 (0.04) 0
---------- ---------- -------
Total distributions......................................... 0 (0.04) 0
---------- ---------- -------
Net Asset Value, ending..................................... $ 10.61 $ 9.94 $ 10.47
========== ========== ========
Ratios/Supplemental Data:
Total return (aggregate return for period).................. 6.74% (4.74%) 4.70%
========== ========== ========
Net assets, ending (000).................................... $ 9,456 $ 9,460 $ 6,320
========== ========== ========
Ratio of expenses to average net assets..................... 2.43% 2.51% 0.91%
========== ========== ========
Ratio of net investment loss to average net assets.......... (1.22%) (1.50%) (0.53%)
========== ========== ========
Portfolio turnover rate..................................... 52.99% 95.70% 31.15%
========== ========== ========
</TABLE>
See accompanying notes to financial statements.
*Commencement of operations
13
<PAGE> 15
[THIS PAGE LEFT BLANK INTENTIONALLY]
<PAGE> 16
[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 AGGRESSIVE GROWTH FUND
<SERIES>
<NUMBER> 1
<NAME> CARDINAL AGGRESSIVE GROWTH 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> 9,104
<INVESTMENTS-AT-VALUE> 0
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</TABLE>
