UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-05641 | ||||||||
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The Park Avenue Portfolio | |||||||||
(Exact name of registrant as specified in charter) | |||||||||
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7 Hanover Square New York, N.Y. |
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(Address of principal executive offices) |
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John H. Walter | Thomas G. Sorell | ||||||||
The Park Avenue Portfolio | The Park Avenue Portfolio | ||||||||
7 Hanover Square | 7 Hanover Square | ||||||||
New York, N.Y. 10004 | New York, N.Y. 10004 | ||||||||
(Name and address of agent for service) | |||||||||
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Registrant’s telephone number, including area code: | (800) 221-3253 |
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Date of fiscal year end: | December 31 |
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Date of reporting period: | June 30, 2006 |
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ITEM 1. REPORTS TO STOCKHOLDERS.
The Semiannual Report to Shareholders follows.
The Park Avenue Portfolio®
Semiannual Report
to Shareholders
June 30, 2006
The Guardian Park Avenue Fund®
The Guardian UBS Large Cap Value FundSM
The Guardian Park Avenue Small Cap FundSM
The Guardian UBS Small Cap Value FundSM
The Guardian Asset Allocation FundSM
The Guardian S&P 500 Index FundSM
The Guardian Baillie Gifford International Growth FundSM
The Guardian Baillie Gifford Emerging Markets FundSM
The Guardian Investment Quality Bond FundSM
The Guardian Low Duration Bond FundSM
The Guardian High Yield Bond FundSM
The Guardian Tax-Exempt FundSM
The Guardian Cash Management FundSM
Dear Shareholder:
Thomas G. Sorell, CFA
Chief Investment Officer and President of the Park Avenue Portfolio
QUICK FACTS
• The U.S. economy rebounded strongly in the first half of 2006, averaging over 4% growth, rising 5.6% in the first quarter and 2.5% (Advance Report) in the second. Real GDP growth is projected to slow to slightly below 3% in the second half of 2006.
• The S&P 500 Index rose sharply during the first quarter, returning 4.2%, but then fell 1.4% during the second quarter on concerns about continued interest rate hikes. For the first half, the S&P 500 returned 2.7%
• International stocks greatly outperformed their U.S. counterparts in the first quarter, with the MSCI EAFE Index returning 9.5%, but treaded water in the second, returning slightly less than 1%, for a first half return of 10.5%.
• The U.S. bond market was weak for the first half of the year as four additional Federal Reserve rate hikes, as well as inflationary pressures, caused short- and long-term yields to rise.
Moderating Economic Growth
Thus far in 2006, it appears that the economy continues to be in good shape. As expected, the U.S. economy rebounded sharply from its step backwards in the fourth quarter of 2005. Following its tepid 1.8% advance in the last three months of 2005 — the first quarter that gross domestic product (GDP) didn't surpass 3.0% in nearly three years — GDP rose 5.6% in the first quarter of 2006. This marked its strongest gain since the third quarter of 2003. The economy also expanded in the second quarter, though at a slower pace, growing 2.5%, for an average pace of about 4% in the first half of the year. The economy is projected to continue to expand in the second half of 2006, but at a slower pace, likely a bit below 3%.
There are a variety of factors pointing to more modest growth. Oil prices have again surpassed $70 a barrel and $3.00 a gallon gas prices have become a familiar, albeit unwelcome, sight. This should impact consumer spending and it has already been cited as a reason for slower sales at many U.S. retailers. The cooling of the housing market is another factor. While the dire predictions surrounding the bursting of the so-called housing "bubble" have not materialized, there are numerous signs that the once red-hot market is no longer scorching as sales and price gains have slowed and inventories have risen. Finally, the actions of the Federal Reserve Board (the "Fed") cannot be underestimated.
In its attempts to ward off inflation, the Fed has been on a two-year campaign to moderate economic growth by raising interest rates. Before the Fed began its tightening campaign in June 2004, short-term rates stood at 1.00%, their lowest level since the 1950's. Since that time, the Fed has met 17 times and raised rates in 0.25% increments at every meeting. The current level of 5.25% is the highest level for short-term rates in more than five years. Over the same two-year period, long-term rates, as measured by 10-year Treasuries, have risen more modestly from 4.62% to 5.15%. This trend of higher rates has increased borrowing costs on everything from credit cards to home mortgages. In addition, the mortgage refinancing boom, which has helped fuel the economy in recent years, is now largely a thing of the past.
Equities: Taking a Ride With the Fed
The stock market has resembled that of a roller coaster thus far in 2006. Stocks rose sharply in the first quarter of 2006, as corporate profits were better than expected, inflation appeared to be contained, and investors anticipated an end to Fed rate hikes. The second quarter began on the right foot—steadily rising on the back of positive economic news and strong corporate profits. First quarter corporate earnings again surprised on the upside and posted an 11th consecutive quarter of double-digit percentage gains. In addition, based on comments from Fed Chairman Ben Bernanke at a Congressional appearance at the end of April, there appeared to be further evidence that the Fed's tightening campaign was about to end.
However, Mr. Bernanke then clarified his remarks in early May by telling a CNBC reporter that investors had misinterpreted his comments regarding rates. Then, just as the Dow Jones Industrial Average and other major indices were nearing their all-time highs on May 10th, the wheels came off the bus. Mr. Bernanke and company put an official end to the speculation regarding rates by raising them a 16th straight time and formally indicating that "some further policy firming may be needed." Concerns that the Fed would go too far and choke off the economic expansion and corporate profits led to a sharp decline in stock prices in the ensuing weeks.
The market then surged at the end of the second quarter, again coinciding with another Fed rate hike on June 29th. In its official statement at that time, the Fed said: "some" inflation risks remained and "any" additional firming that "may" be needed to address these risks would "depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information." This was a less strong statement than the May 10th press release that said "some further policy firming may yet be needed to address inflation risks." Investors read this to mean the Fed would pause from raising rates at its next meeting in August. While stock prices then rose sharply, it was not enough to overcome their weakness during the previous weeks.
All told, during the first six months of 2006, the stock market, as measured by the S&P 500 Index, returned 2.71%. Despite a sharp decline in the second quarters, small-cap stocks outperformed their mid- and large-cap counterparts over the six month reporting period. During this time, the Russell 2000,
Russell Midcap, and Russell 1000 Indexes returned 8.21%, 4.84%, and 2.76%, respectively. From an investment style perspective, value stocks continued to outperform growth stocks, as the Russell 3000 Value and the Russell 3000 Growth Indexes returned 6.90% and –0.32%, respectively.
As was the case in the U.S., international equities started the year strong, only to weaken later in the reporting period. However, they significantly outperformed U.S. stocks over the first half of the year. After gaining an outstanding 9.47% in the first quarter, the MSCI EAFE Index returned a tepid 0.94% in the second quarter and ended the full period up 10.50%. In sharp contrast to the first quarter, emerging market equities were extremely weak in the second quarter due to concerns over rising global interest rates and slower growth. Following a 12.12% gain over the first three months of 2006, the MSCI EMF Index declined 4.27% during the second quarter, with some emerging countries posting double-digit losses. For the period as a whole, the MSCI EMF Index still managed to post a 7.33% gain.
A Weak Bond Market
After its superhero resiliency in the face of steadily rising short-term interest rates in 2005, the bond market is now looking downright mortal. Thus far in 2006, the bond market hasn't been able to overcome the numerous headwinds. In particular, rising short- and long-term interest rates, inflationary pressures, and concerns over a hawkish Fed have taken their toll on bond prices. During the reporting period, two-year Treasury yields rose from 4.41% to 5.16% and 10-year Treasury yields moved from 4.39% to 5.15% (bond yields and prices move in opposite directions).
The overall bond market, as measured by the Lehman Brothers Aggregate Bond Index, fell 0.72% in the first half of 2006. Whereas riskier segments of the bond market rose in the first quarter, they had mixed results in the second quarter. Over the entire reporting period, emerging market debt, as measured by the J.P. Morgan EMBI Global Diversified Index, returned –0.53% and high yield bonds, as measured by the Lehman High Yield Bond Index returned 3.14%.
Economic Outlook: Positive but Slower Growth
We expect to see the economic expansion moderate as the year progresses. The Blue Chip consensus estimate for 2006 GDP is now 3.5%, the same as expected earlier in the year. It's likely that growth in consumer spending will slow for the reasons previously stated. In addition, if the housing market continues to cool, it could have a major impact on the overall economy. According to research firm ISI, housing was 3.5% of overall GDP in 1990 and it peaked at 6.2% of GDP during the first quarter of 2006. Given this increase, you can see the ripple effect a slower housing market could have due to less construction, lower employment, and a decline in the wealth effect. Couple this with numerous geopolitical issues including Iran, North Korea, and Iraq, and you can see areas of vulnerability for the economy. Having said that, we believe that commercial real estate investment and business capital spending are both in good shape and we've repeatedly seen that it's not wise to underestimate the spending patterns of the U.S. consumer. As such, we don't expect to see the economy fall into a recession in the foreseeable future.
In terms of the Fed, we believe upcoming inflation figures hold the key to whether a Fed "pause" will actually represent the end of the current tightening cycle. In recent months, inflation data has surpassed the Fed's comfort zone. While the Fed has given itself some wiggle room, should inflation gauges remain high, we'd expect the Fed to raise rates again later this year. We believe the Fed and its relatively new Chairman must firmly establish its inflation-fighting credentials. While some pundits feel otherwise, even if the Fed does pause in August, we think it could be just that—a pause, with one or two additional hikes either later this year, or early next year, based on continued inflationary pressures in our economy.
Equity Outlook: Single-Digit Returns
Our forecast for the U.S. equity market has not wavered this year, as we expect to see returns in the high single-digit range in 2006. While there are a myriad of factors impacting returns, we believe the overriding determinant will be corporate profitability, which, according to Thomson First Call, is 9% growth for companies in the S&P 500 Index. While year-over-year corporate profitability rates are declining (they were up 21% in 2004 and 14% in 2005), 9% remains a healthy advance in light of the interest rate and inflation environment.
In recent commentaries, we've discussed the possibility of larger, high quality companies beginning to outperform smaller, lower quality companies. Since the market peaked on May 10th, we've seen just that. Given our forecast of slower economic and corporate profit growth, we believe this trend could continue.
Looking overseas, we remain bullish on international equities. Growth is improving in key countries such as Japan and Germany and merger and acquisition activity remains robust. While interest rates are expected to rise in the Eurozone and Japan, they are still much lower than in the U.S. These factors, coupled with the positive impact of a weaker dollar for U.S. investors with international exposure, give us a positive view.
Bond Outlook: Continued Strains
While there is upside potential for bond prices when the Fed signals an end to rate hikes, we believe the uncertainty surrounding interest rates will continue during the remainder of the year. As a result, the bond market could experience periods of volatility going forward. As has been the case all year, there is very little compensation for assuming additional risk in the bond market, as 10-year Treasury yields are slightly less than 2-year yields, and we do think rates are likely to rise somewhat as the Fed hikes a few more times. So to some extent, with short-term rates around 5%, "cash is King." However, bond yields are at their highest levels in over three years and inflation is unlikely to move substantially higher, so an allocation to both longer and shorter maturity fixed income may be warranted depending upon the investor's investment horizon.
Back to the Basics
Living through the day-to-day events in the financial markets can be an unnerving experience. However, if we take a step back and look at the first half of the year in aggregate, we're just about where we expected to be. The stock market is on track to produce single-digit returns and the bond market is relatively flat for the year. While we don't advocate trying to time the market, we always believe it's worthwhile to sit down periodically with your investment professional to discuss whether adjustments are needed for your portfolio. For example, given the very strong returns of small-cap stocks in recent years, an investor's allocation to this asset class may have grown significantly larger than his or her risk tolerance calls for. As a result, that position would have left that investor vulnerable to the decline in small-caps during the second quarter. Also, while bond yields are not much higher than current money market yields, they are still the highest yields seen in over three years, and thus may warrant consideration. Your investment professional can review your goals, time horizon, and risk tolerance and recommend an appropriate course of action for your portfolio.
In closing, we truly appreciate your business and the confidence and trust you place in The Park Avenue Portfolio management team to prudently manage your fund investments. We continue to take this fiduciary responsibility very seriously and, as always, will seek to generate investment returns that warrant your continued commitment and support.
Thomas G. Sorell, CFA
President, The Park Avenue Portfolio
Chief Investment Officer,
Guardian Investor Services LLC
Special Note
Guardian Investor Services, LLC (GIS), the investment adviser for all of the Funds in The Park Avenue Portfolio except for the international and emerging markets funds, has agreed to acquire a majority interest in RS Investment Management Co., LLC (RS), a leading investment management firm specializing in growth and value small- and mid-cap mutual funds. We believe that the investment management expertise of RS complements our existing investment management strengths in large- and small-cap core equity and fixed income investing. This is an exciting opportunity for us to expand our presence in the investment management business that we anticipate will have benefits for shareholders.
As part of the reorganization, RS would become the advisor for all the Funds; GIS would become the subadviser for the index, asset allocation, and fixed income funds; Guardian Baillie Gifford Limited would become the subadviser for the international funds and Baillie Gifford Overseas Limited would continue to have day-to-day responsibilities for the funds management, and UBS Global Asset Management would continue to subadvise the large cap value fund.
GIS and RS also propose to integrate The Park Avenue Portfolio family of funds (the "Funds") into the RS mutual funds family (the "RS Funds"). We believe that the combination of the Funds with the RS Funds would create a more diverse fund family offering more choices to investors.
The Board of Trustees of The Park Avenue Portfolio, including a majority of independent Trustees, has approved the proposals. Shareholders of The Park Avenue Portfolio family of mutual funds will have an opportunity to vote on the proposals at a special shareholder meeting to be held on September 28, 2006. Your vote is important, no matter how many shares you own. If you have any questions, please call our Customer Service Representatives at (800) 343-0817, option 3, weekdays between 9:00 a.m. and 6:00 p.m. (Eastern Time).
Gross Domestic Product measures the value of goods and services produced in an economy.
The Morgan Stanley Capital International (MSCI) for Europe, Australia, and Far East (EAFE) is an index that is generally considered to be representative of international stock market activity. The MSCI EAFE is an unmanaged index that is not available for direct investment. Unlike mutual funds, there are no expenses associated with the index.
The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 Index.
The S&P Index is an index of 500 primarily large-cap U.S. stocks that is generally considered to be representative of U.S. stock market activity. The S&P 500 Index is an unmanaged index that is not available for direct investment. Unlike mutual funds, there are no expenses associated with the index.
Please note that the opinions and outlooks about the markets in general and any specific securities expressed above reflect the viewpoints of Tom Sorell as of June 30, 2006. Keep in mind that market conditions are constantly evolving and that past performance is not a guarantee of future results. This shareholder letter is not part of the funds' shareholder report for legal purposes and is submitted for the general information of The Park Avenue Portfolio shareholders. This letter is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus. Please consider the funds' investment objective, risks, fees and charges carefully before investing.
Shareholders of the Guardian-sponsored mutual funds and RS-sponsored mutual funds should read the prospectus/proxy statement or proxy statement, as applicable, for their funds carefully when it is available because it will contain important and more complete information about the proposed transactions. The prospectus/proxy statement and proxy statement will set forth the identity of the participants in the proxy solicitation and a description of the participants' direct or indirect interests, by security holdings or otherwise. No authorized offer of a security of the RS-sponsored mutual funds in connection with the proposed integration of the Guardian-sponsored funds into the RS mutual fund family may be made except pursuant to the final prospectus/proxy statement provided to shareholders of the Guardian-sponsored mutual funds. Once the prospectus/proxy statement or proxy statement, as applicable, is available, shareholders can obtain it and other relevant documents without charge at the Securities and Exchange Commission's website (www.sec.gov), or by calling Guardian at (800) 221-3253.
The Park Avenue Portfolio® family of mutual funds is sold by prospectus only. The prospectus contains important information, including fees and expenses and should be read carefully before investing or sending money. You should consider
the funds' investment objectives, risks, fees and charges carefully before investing. A prospectus contains this and other important information and can be obtained from your investment professional or by calling 800-221-3253.
Shares of The Park Avenue Portfolio® family of mutual funds are not deposits or obligations of, or guaranteed or endorsed by, any bank or depository institution, nor are they insured by the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Association (NCUA), the Federal Reserve Board, or any other agency. Investment in the funds involves risks, including possible loss of the principal amount invested. Fund shares are subject to market fluctuations and, when redeemed, may be worth more or less than their original cost.
Guardian Investor Services LLC (GIS) is the distributor of The Park Avenue Portfolio family of mutual funds. GIS is an indirect wholly owned subsidiary of The Guardian Life Insurance Company of America (Guardian Life), New York, NY. GIS is located at 7 Hanover Square, New York, NY 10004. 800-221-3253. GIS is a member: NASD, SIPC.
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THE PARK AVENUE PORTFOLIO
Table of Contents
Fund Highlights | Schedule of Investments | ||||||||||
The Guardian Park Avenue Fund | 2 | 28 | |||||||||
The Guardian UBS Large Cap Value Fund | 4 | 30 | |||||||||
The Guardian Park Avenue Small Cap Fund | 6 | 32 | |||||||||
The Guardian UBS Small Cap Value Fund | 8 | 34 | |||||||||
The Guardian Asset Allocation Fund | 10 | 36 | |||||||||
The Guardian S&P 500 Index Fund | 12 | 39 | |||||||||
The Guardian Baillie Gifford International Growth Fund | 14 | 45 | |||||||||
The Guardian Baillie Gifford Emerging Markets Fund | 16 | 48 | |||||||||
The Guardian Investment Quality Bond Fund | 18 | 50 | |||||||||
The Guardian Low Duration Bond Fund | 20 | 54 | |||||||||
The Guardian High Yield Bond Fund | 22 | 57 | |||||||||
The Guardian Tax-Exempt Fund | 24 | 62 | |||||||||
The Guardian Cash Management Fund | 26 | 65 | |||||||||
Financial Statements (Unaudited) | 68 | ||||||||||
Notes to Financial Statements (Unaudited) | 76 | ||||||||||
Financial Highlights (Unaudited) | 90 | ||||||||||
Board Approval of Investment Management Agreements (Unaudited) | 104 | ||||||||||
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About Your Semiannual Report
Information About Indexes:
Index returns are provided for comparative purposes and are quoted throughout the following fund information. Please note that the indices are not available for direct investment and the returns do not reflect the fees and expenses that have been deducted from the Fund. In addition, the return figures for the index do not reflect sales charges that an investor may pay when purchasing or redeeming shares of the Fund.
• The S&P 500 Index is an unmanaged index of 500 primarily large cap U.S. stocks that is generally considered to be representative of U.S. stock market activity.
• The Russell 1000 Value Index offers investors access to the large-cap value segment of the U.S. equity universe. The Russell 1000 Value is constructed to provide a comprehensive and unbiased barometer of the large-cap value market. Based on ongoing empirical research of investment manager behavior, the methodology used to determine growth probability approximates the aggregate large-cap value manager's opportunity set.
• The Russell 2000 Index is an unmanaged index that is generally considered to be representative of small capitalization issues in the U.S. stock market.
• The Russell 2000 Value Index offers investors access to the small-cap value segment of the U.S. equity universe. The Russell 2000 Value is constructed to provide a comprehensive and unbiased barometer of the small-cap value market. Based on ongoing empirical research of investment manager behavior, the methodology used to determine value probability approximates the aggregate small-cap value manager's opportunity set.
• The Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE) Growth Index is an unmanaged index that is generally considered to be representative of the international growth stock market activity.
• The Morgan Stanley Capital International (MSCI) Emerging Markets Free (EMF) Index is an unmanaged index that is generally considered to be representative of the stock market activity of emerging markets. The MSCI EMF Index is a market capitalization weighted index composed of companies representative of the market structure of 22 emerging market countries of Europe, Latin America and the Pacific Basin. The MSCI EMF Index excludes closed markets and those shares in otherwise free markets that may not be purchased by foreigners.
• The Lehman Brothers Aggregate Bond Index is an unmanaged index that is generally considered to be representative of U.S. bond market activity.
• The Lehman Brothers U.S. Government 1-3 Year Bond Index is an unmanaged index that is generally considered to be representative of U.S. short duration bond market activity.
• The Lehman Brothers Corporate High Yield Bond Index is an unmanaged index that is generally considered to be representative of U.S. corporate high yield bond market activity.
• The Lehman Brothers Municipal Bond Index is an unmanaged index that is generally considered to be representative of U.S. municipal bond activity.
• The Lehman Brothers 3-Month Treasury Bill Index is generally considered representative of the average yield of three-month Treasury Bills.
n The Guardian Park Avenue Fund
Semiannual Report
to Shareholders
Manind V. Govil, CFA
Portfolio Manager
Objective:
Long-term growth of capital
Portfolio:
At least 80% common stocks and securities convertible into common stocks
Inception Date:
June 1, 1972
Net Assets at
June 30, 2006:
$809,803,465
Top Ten Holdings (As of 6/30/2006)
Company | Percentage of Total Net Assets | ||||||
Viacom, Inc. - Class B | 3.26 | % | |||||
AT & T, Inc. | 3.20 | % | |||||
Chevron Corp. | 2.84 | % | |||||
Wyeth | 2.70 | % | |||||
Caterpillar, Inc. | 2.67 | % | |||||
Abbott Laboratories | 2.58 | % | |||||
Pfizer, Inc. | 2.57 | % | |||||
MasterCard, Inc. - Class A | 2.56 | % | |||||
Apple Computer, Inc. | 2.43 | % | |||||
Microsoft Corp. | 2.32 | % |
Sector Weightings vs. Index (As of 6/30/2006)
Average Annual Total Returns (For periods ended 6/30/2006)
Inception Date | Year to Date | 1 Yr | 5 Yrs | 10 Yrs | Since Inception | ||||||||||||||||||||||
Class A shares (w/o sales charge) | 6/1/72 | 2.02 | % | 8.88 | % | –0.56 | % | 5.11 | % | 12.61 | % | ||||||||||||||||
(w/ sales charge) | 6/1/72 | –2.57 | % | 3.98 | % | –1.47 | % | 4.63 | % | 12.46 | % | ||||||||||||||||
Class B shares (w/o sales charge) | 5/1/96 | 1.46 | % | 7.69 | % | –1.55 | % | 4.10 | % | 4.37 | % | ||||||||||||||||
(w/ sales charge) | 5/1/96 | –1.54 | % | 4.69 | % | –1.75 | % | 4.10 | % | 4.37 | % | ||||||||||||||||
Class C shares (w/o sales charge) | 8/7/00 | 1.45 | % | 7.64 | % | –1.73 | % | — | –8.05 | % | |||||||||||||||||
(w/ sales charge) | 8/7/00 | 0.45 | % | 6.64 | % | –1.73 | % | — | –8.05 | % | |||||||||||||||||
Class K shares (w/o sales charge) | 5/15/01 | 1.87 | % | 8.51 | % | –0.88 | % | — | –1.57 | % | |||||||||||||||||
(w/ sales charge) | 5/15/01 | 0.87 | % | 7.51 | % | –0.88 | % | — | –1.57 | % | |||||||||||||||||
S&P 500 Index | 2.71 | % | 8.63 | % | 2.50 | % | 8.32 | % | 10.92 | %* | |||||||||||||||||
*Since Class A shares inception |
About information in this report:
• It is important to consider the Fund's investment objectives, risks, fees and expenses before investing. All funds involve some risk, including possible loss of the principal amount invested.
• Please see the "About Your Semiannual Report" page for a description of the S&P 500 Index.
• All performance data quoted is historical and the results represent past performance and neither guarantee nor predict future investment results. To obtain performance data current to the most recent month (available within 7 business days of the most recent month end), please call us at (800) 221-3253 or visit our website at www.guardianinvestor.com. Current performance may be higher or lower than the performance quoted here. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.
• Total return figures are historical and assume the reinvestment of dividends and distributions and the deduction of all Fund expenses. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on distributions or redemption of shares. Total return figures for Class A shares do not take into account the current maximum sales charge of 4.5%, except where noted. Total return figures for Class B, Class C and Class K shares do not take into account the contingent deferred sales charge applicable to such shares (maximum 3% for Class B shares and 1% for Class C and Class K shares), except where noted. Prior to August 25, 1988, Class A shares of the Fund were offered at a higher sales charge, so that actual returns would have been somewhat lower.
2
n The Guardian Park Avenue Fund
Semiannual Report
to Shareholders
Fund Expenses
By investing in the Fund, you incur two types of costs: (1) transaction costs, including, as applicable, sales charges on purchase payments, reinvested dividends, or other distributions; redemption fees and exchange fees; and (2) ongoing costs, including, as applicable, management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on January 1, 2006 and held for six months ended June 30, 2006.
Actual Expenses
The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the applicable line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2006 | Ending Account Value June 30, 2006 | Expenses Paid During the Period* | Annualized Expense Ratio | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,020.20 | $ | 4.56 | 0.91 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.28 | $ | 4.56 | 0.91 | % | |||||||||||
Class B | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,014.60 | $ | 10.19 | 2.04 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,014.68 | $ | 10.19 | 2.04 | % | |||||||||||
Class C | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,014.50 | $ | 10.19 | 2.04 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,014.68 | $ | 10.19 | 2.04 | % | |||||||||||
Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,018.70 | $ | 6.26 | 1.25 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,018.60 | $ | 6.26 | 1.25 | % |
* Expenses are equal to the Fund's annualized expense ratio for the Fund's Class A, B, C and K shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the Fund's most recent fiscal half-year).
3
n The Guardian UBS Large Cap Value Fund
Semiannual Report
to Shareholders
John Leonard,
Lead Portfolio Manager
Objective:
Seeks to maximize total return, consisting of capital appreciation and current income
Portfolio:
At least 80% in equity securities issued by companies with a large market capitalization at the time of purchase
Inception Date:
February 3, 2003
Net Assets at
June 30, 2006:
$92,720,482
Top Ten Holdings (As of 6/30/2006)
Company | Percentage of Total Net Assets | ||||||
Citigroup, Inc. | 5.25 | % | |||||
Wells Fargo & Co. | 4.49 | % | |||||
Morgan Stanley | 4.37 | % | |||||
Marathon Oil Corp. | 4.25 | % | |||||
J.P. Morgan Chase & Co. | 3.70 | % | |||||
Exxon Mobil Corp. | 3.63 | % | |||||
Wyeth | 2.81 | % | |||||
American Int'l. Group, Inc. | 2.78 | % | |||||
Exelon Corp. | 2.51 | % | |||||
Sprint Nextel Corp. | 2.40 | % |
Sector Weightings vs. Index (As of 6/30/2006)
Average Annual Total Returns (For periods ended 6/30/2006)
Inception Date | Year to Date | 1 Yr | 5 Yrs | 10 Yrs | Since Inception | ||||||||||||||||||||||
Class A shares (w/o sales charge) | 2/3/03 | 4.03 | % | 11.70 | % | — | — | 16.77 | % | ||||||||||||||||||
(w/ sales charge) | 2/3/03 | -0.65 | % | 6.67 | % | — | — | 15.20 | % | ||||||||||||||||||
Class B shares (w/o sales charge) | 2/3/03 | 3.69 | % | 10.86 | % | — | — | 15.92 | % | ||||||||||||||||||
(w/ sales charge) | 2/3/03 | 0.69 | % | 7.86 | % | — | — | 15.51 | % | ||||||||||||||||||
Class C shares (w/o sales charge) | 2/3/03 | 3.69 | % | 10.86 | % | — | — | 15.92 | % | ||||||||||||||||||
(w/ sales charge) | 2/3/03 | 2.69 | % | 9.86 | % | — | — | 15.92 | % | ||||||||||||||||||
Class K shares (w/o sales charge) | 2/3/03 | 3.92 | % | 11.41 | % | — | — | 16.46 | % | ||||||||||||||||||
(w/ sales charge) | 2/3/03 | 2.92 | % | 10.41 | % | — | — | 16.46 | % | ||||||||||||||||||
Russell 1000 Value Index | 6.56 | % | 12.10 | % | — | — | 18.06 | %* | |||||||||||||||||||
*Since Class A Shares inception |
About information in this report:
• It is important to consider the Fund's investment objectives, risks, fees and expenses before investing. All funds involve some risk, including possible loss of the principal amount invested.
• Please see the "About Your Semiannual Report" page for a description of the Russell 1000 Value Index.
• All performance data quoted is historical and the results represent past performance and neither guarantee nor predict future investment results. To obtain performance data current to the most recent month (available within 7 business days of the most recent month end), please call us at (800) 221-3253 or visit our website at www.guardianinvestor.com. Current performance may be higher or lower than the performance quoted here. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.
• Total return figures are historical and assume the reinvestment of dividends and distributions and the deduction of all Fund expenses. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on distributions or redemption of shares. Total return figures for Class A shares do not take into account the current maximum sales charge of 4.5%, except where noted. Total return figures for Class B, Class C and Class K shares do not take into account the contingent deferred sales charge applicable to such shares (maximum 3% for Class B shares and 1% for Class C and Class K shares), except where noted.
4
n The Guardian UBS Large Cap Value Fund
Semiannual Report
to Shareholders
Fund Expenses
By investing in the Fund, you incur two types of costs: (1) transaction costs, including, as applicable, sales charges on purchase payments, reinvested dividends, or other distributions; redemption fees and exchange fees; and (2) ongoing costs, including, as applicable, management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on January 1, 2006 and held for six months ended June 30, 2006.
Actual Expenses
The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the applicable line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2006 | Ending Account Value June 30, 2006 | Expenses Paid During the Period* | Annualized Expense Ratio | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,040.30 | $ | 7.23 | 1.43 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,017.70 | $ | 7.15 | 1.43 | % | |||||||||||
Class B | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,036.90 | $ | 11.06 | 2.19 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,013.93 | $ | 10.94 | 2.19 | % | |||||||||||
Class C | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,036.90 | $ | 11.06 | 2.19 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,013.93 | $ | 10.94 | 2.19 | % | |||||||||||
Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,039.20 | $ | 8.65 | 1.71 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,016.31 | $ | 8.55 | 1.71 | % |
* Expenses are equal to the Fund's annualized expense ratio for the Fund's Class A, B, C and K shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the Fund's most recent fiscal half-year).
5
n The Guardian Park Avenue Small Cap Fund
Semiannual Report
to Shareholders
Matthew Ziehl, CFA, Portfolio Manager
Objective:
Long-term growth of capital
Portfolio:
At least 85% in a diversified portfolio of common stocks issued by companies with a small market capitalization at the time of initial purchase
Inception Date:
May 1, 1997
Net Assets at
June 30, 2006:
$171,418,607
Top Ten Holdings (As of 6/30/2006)
Company | Percentage of Total Net Assets | ||||||
FactSet Research Systems, Inc. | 2.61 | % | |||||
Affiliated Managers Group, Inc. | 2.51 | % | |||||
Korn/Ferry Int'l. | 2.16 | % | |||||
Resources Connection, Inc. | 2.01 | % | |||||
WebEx Comm., Inc. | 1.87 | % | |||||
Arris Group, Inc. | 1.74 | % | |||||
Stericycle, Inc. | 1.74 | % | |||||
Immucor, Inc. | 1.74 | % | |||||
Labor Ready, Inc. | 1.71 | % | |||||
Varian Semiconductor Equipment Assoc., Inc. | 1.66 | % |
Sector Weightings vs. Index (As of 6/30/2006)
Average Annual Total Returns (For periods ended 6/30/2006)
Inception Date | Year to Date | 1 Yr | 5 Yrs | 10 Yrs | Since Inception | ||||||||||||||||||||||
Class A shares (w/o sales charge) | 5/1/97 | 6.35 | % | 10.67 | % | 7.47 | % | — | 9.63 | % | |||||||||||||||||
(w/ sales charge) | 5/1/97 | 1.56 | % | 5.69 | % | 6.48 | % | — | 9.08 | % | |||||||||||||||||
Class B shares (w/o sales charge) | 5/6/97 | 5.84 | % | 9.54 | % | 6.44 | % | — | 8.27 | % | |||||||||||||||||
(w/ sales charge) | 5/6/97 | 2.84 | % | 6.54 | % | 6.28 | % | — | 8.27 | % | |||||||||||||||||
Class C shares (w/o sales charge) | 8/7/00 | 5.89 | % | 9.62 | % | 6.34 | % | — | 1.69 | % | |||||||||||||||||
(w/ sales charge) | 8/7/00 | 4.89 | % | 8.62 | % | 6.34 | % | — | 1.69 | % | |||||||||||||||||
Class K shares (w/o sales charge) | 5/15/01 | 6.27 | % | 10.36 | % | 7.16 | % | — | 7.17 | % | |||||||||||||||||
(w/ sales charge) | 5/15/01 | 5.27 | % | 9.36 | % | 7.16 | % | — | 7.17 | % | |||||||||||||||||
Russell 2000 Index | 8.21 | % | 14.58 | % | 8.50 | % | — | 9.78 | %* | ||||||||||||||||||
*Since Class A shares inception |
About information in this report:
• It is important to consider the Fund's investment objectives, risks, fees and expenses before investing. All funds involve some risk, including possible loss of the principal amount invested. Small-cap investing entails special risks, as small-cap stocks have tended to be more volatile and to drop more in down markets than large-cap stocks. This may happen because small companies may be limited in terms of product lines, financial resources and management.
• Please see the "About Your Semiannual Report" page for a description of the Russell 2000 Index.
• All performance data quoted is historical and the results represent past performance and neither guarantee nor predict future investment results. To obtain performance data current to the most recent month (available within 7 business days of the most recent month end), please call us at (800) 221-3253 or visit our website at www.guardianinvestor.com. Current performance may be higher or lower than the performance quoted here. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.
• Total return figures are historical and assume the reinvestment of dividends and distributions and the deduction of all Fund expenses. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on distributions or redemption of shares. Total return figures for Class A shares do not take into account the current maximum sales charge of 4.5%, except where noted. Total return figures for Class B, Class C and Class K shares do not take into account the contingent deferred sales charge applicable to such shares (maximum 3% for Class B shares and 1% for Class C and Class K shares), except where noted.
6
n The Guardian Park Avenue Small Cap Fund
Semiannual Report
to Shareholders
Fund Expenses
By investing in the Fund, you incur two types of costs: (1) transaction costs, including, as applicable, sales charges on purchase payments, reinvested dividends, or other distributions; redemption fees and exchange fees; and (2) ongoing costs, including, as applicable, management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on January 1, 2006 and held for six months ended June 30, 2006.
Actual Expenses
The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the applicable line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2006 | Ending Account Value June 30, 2006 | Expenses Paid During the Period* | Annualized Expense Ratio | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,063.50 | $ | 6.45 | 1.26 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,018.55 | $ | 6.31 | 1.26 | % | |||||||||||
Class B | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,058.40 | $ | 12.10 | 2.37 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,013.04 | $ | 11.83 | 2.37 | % | |||||||||||
Class C | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,058.90 | $ | 11.28 | 2.21 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,013.84 | $ | 11.03 | 2.21 | % | |||||||||||
Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,062.70 | $ | 8.13 | 1.59 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,016.91 | $ | 7.95 | 1.59 | % |
* Expenses are equal to the Fund's annualized expense ratio for the Fund's Class A, B, C and K shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the Fund's most recent fiscal half-year).
7
n The Guardian UBS Small Cap Value Fund
Semiannual Report
to Shareholders
Wilford Talbot,
Lead Portfolio Manager
Objective:
Seeks to maximize total return, consisting of capital appreciation and current income
Portfolio:
At least 80% in equity securities issued by companies with a small market capitalization at the time of initial purchase
Inception Date:
February 3, 2003
Net Assets at
June 30, 2006:
$45,105,230
Top Ten Holdings (As of 6/30/2006)
Company | Percentage of Total Net Assets | ||||||
Apollo Investment Corp. | 2.44 | % | |||||
LaSalle Hotel Pptys. | 2.26 | % | |||||
Colonial BancGroup, Inc. | 2.07 | % | |||||
Triumph Group, Inc. | 2.01 | % | |||||
Jackson Hewitt Tax Svc., Inc. | 2.01 | % | |||||
Nautilus, Inc. | 2.00 | % | |||||
KMG America Corp. | 1.96 | % | |||||
National Financial Partners Corp. | 1.95 | % | |||||
Esterline Technologies Corp. | 1.92 | % | |||||
Equitable Resources, Inc. | 1.82 | % |
Sector Weightings vs. Index (As of 6/30/2006)
Average Annual Total Returns (For periods ended 6/30/2006)
Inception Date | Year to Date | 1 Yr | 5 Yrs | 10 Yrs | Since Inception | ||||||||||||||||||||||
Class A shares (w/o sales charge) | 2/3/03 | 1.61 | % | 6.48 | % | — | — | 16.64 | % | ||||||||||||||||||
(w/ sales charge) | 2/3/03 | –2.96 | % | 1.69 | % | — | — | 15.07 | % | ||||||||||||||||||
Class B shares (w/o sales charge) | 2/3/03 | 1.13 | % | 5.69 | % | — | — | 15.73 | % | ||||||||||||||||||
(w/ sales charge) | 2/3/03 | –1.87 | % | 2.69 | % | — | — | 15.31 | % | ||||||||||||||||||
Class C shares (w/o sales charge) | 2/3/03 | 1.13 | % | 5.70 | % | — | — | 15.74 | % | ||||||||||||||||||
(w/ sales charge) | 2/3/03 | 0.13 | % | 4.70 | % | — | — | 15.74 | % | ||||||||||||||||||
Class K shares (w/o sales charge) | 2/3/03 | 1.45 | % | 6.25 | % | — | — | 16.43 | % | ||||||||||||||||||
(w/ sales charge) | 2/3/03 | 0.45 | % | 5.25 | % | — | — | 16.43 | % | ||||||||||||||||||
Russell 2000 Value Index | 10.44 | % | 14.61 | % | — | — | 24.88 | %* | |||||||||||||||||||
*Since Class A shares inception |
About information in this report:
• It is important to consider the Fund's investment objectives, risks, fees and expenses before investing. All funds involve some risk, including possible loss of the principal amount invested. Small-cap investing entails special risks, as small-cap stocks have tended to be more volatile and to drop more in down markets than large-cap stocks. This may happen because small companies may be limited in terms of product lines, financial resources and management.
• Please see the "About Your Semiannual Report" page for a description of the Russell 2000 Value Index.
• All performance data quoted is historical and the results represent past performance and neither guarantee nor predict future investment results. To obtain performance data current to the most recent month (available within 7 business days of the most recent month end), please call us at (800) 221-3253 or visit our website at www.guardianinvestor.com. Current performance may be higher or lower than the performance quoted here. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.
• Total return figures are historical and assume the reinvestment of dividends and distributions and the deduction of all Fund expenses. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on distributions or redemption of shares. Total return figures for Class A shares do not take into account the current maximum sales charge of 4.5%, except where noted. Total return figures for Class B, Class C and Class K shares do not take into account the contingent deferred sales charge applicable to such shares (maximum 3% for Class B shares and 1% for Class C and Class K shares), except where noted.
8
n The Guardian UBS Small Cap Value Fund
Semiannual Report
to Shareholders
Fund Expenses
By investing in the Fund, you incur two types of costs: (1) transaction costs, including, as applicable, sales charges on purchase payments, reinvested dividends, or other distributions; redemption fees and exchange fees; and (2) ongoing costs, including, as applicable, management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on January 1, 2006 and held for six months ended June 30, 2006.
Actual Expenses
The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the applicable line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2006 | Ending Account Value June 30, 2006 | Expenses Paid During the Period* | Annualized Expense Ratio | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,016.10 | $ | 9.65 | 1.93 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,015.22 | $ | 9.64 | 1.93 | % | |||||||||||
Class B | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,011.30 | $ | 13.41 | 2.69 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,011.46 | $ | 13.42 | 2.69 | % | |||||||||||
Class C | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,011.30 | $ | 13.41 | 2.69 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,011.46 | $ | 13.42 | 2.69 | % | |||||||||||
Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,014.50 | $ | 10.39 | 2.08 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,014.48 | $ | 10.39 | 2.08 | % |
* Expenses are equal to the Fund's annualized expense ratio for the Fund's Class A, B, C and K shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the Fund's most recent fiscal half-year).
9
n The Guardian Asset Allocation Fund
Semiannual Report
to Shareholders
Jonathan C. Jankus, CFA, Co-Portfolio Manager
Stewart Johnson, Co-Portfolio Manager
Objective:
Long- term total investment return consistent with moderate investment risk
Portfolio:
Generally purchases shares of The Guardian S&P 500 Index, The Guardian Park Avenue, The Guardian Investment Quality Bond and/or The Guardian Cash Management Funds. Also invests in individual securities and uses futures to manage allocations among the equity, debt and money market asset classes
Inception Date:
February 16, 1993
Net Assets at
June 30, 2006:
$130,031,333
Portfolio Composition by Asset Class (As of 6/30/2006)
Average Annual Total Returns (For periods ended 6/30/2006)
Inception Date | Year to Date | 1 Yr | 5 Yrs | 10 Yrs | Since Inception | ||||||||||||||||||||||
Class A shares (w/o sales charge) | 2/16/93 | 2.75 | % | 7.74 | % | 2.90 | % | 7.26 | % | 8.39 | % | ||||||||||||||||
(w/ sales charge) | 2/16/93 | –1.87 | % | 2.89 | % | 1.96 | % | 6.77 | % | 8.02 | % | ||||||||||||||||
Class B shares (w/o sales charge) | 5/1/96 | 2.18 | % | 6.72 | % | 2.01 | % | 6.21 | % | 6.39 | % | ||||||||||||||||
(w/ sales charge) | 5/1/96 | –0.82 | % | 3.72 | % | 1.82 | % | 6.21 | % | 6.39 | % | ||||||||||||||||
Class C shares (w/o sales charge) | 8/7/00 | 2.19 | % | 6.63 | % | 1.80 | % | — | –0.69 | % | |||||||||||||||||
(w/ sales charge) | 8/7/00 | 1.19 | % | 5.63 | % | 1.80 | % | — | –0.69 | % | |||||||||||||||||
Class K shares (w/o sales charge) | 5/15/01 | 2.40 | % | 7.15 | % | 2.49 | % | — | 1.61 | % | |||||||||||||||||
(w/ sales charge) | 5/15/01 | 1.40 | % | 6.15 | % | 2.49 | % | — | 1.61 | % | |||||||||||||||||
Custom Index: 60% S&P 500 Index, 40% Lehman Brothers Aggregate Bond Index | 1.35 | % | 4.83 | % | 3.78 | % | 7.82 | % | 8.97 | %* | |||||||||||||||||
*Since Class A shares inception |
About information in this report:
• It is important to consider the Fund's investment objectives, risks, fees and expenses before investing. All funds involve some risk, including possible loss of the principal amount invested.
• The Composite benchmark total return data is comprised of 60% of the S&P 500 Index and 40% of the Lehman Brothers Aggregate Bond Index to reflect a 60/40 neutral weighting of the Fund. Please see the "About Your Semiannual Report" page for a description of the S&P 500 Index and the Lehman Brothers Aggregate Bond Index.
• All performance data quoted is historical and the results represent past performance and neither guarantee nor predict future investment results. To obtain performance data current to the most recent month (available within 7 business days of the most recent month end), please call us at (800) 221-3253 or visit our website at www.guardianinvestor.com. Current performance may be higher or lower than the performance quoted here. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.
• Total return figures are historical and assume the reinvestment of dividends and distributions and the deduction of all Fund expenses. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on distributions or redemption of shares. Total return figures for Class A shares do not take into account the current maximum sales charge of 4.5%, except where noted. Total return figures for Class B, Class C and Class K shares do not take into account the contingent deferred sales charge applicable to such shares (maximum 3% for Class B shares and 1% for Class C and Class K shares), except where noted.
10
n The Guardian Asset Allocation Fund
Semiannual Report
to Shareholders
Fund Expenses
By investing in the Fund, you incur two types of costs: (1) transaction costs, including, as applicable, sales charges on purchase payments, reinvested dividends, or other distributions; redemption fees and exchange fees; and (2) ongoing costs, including, as applicable, management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on January 1, 2006 and held for six months ended June 30, 2006.
Actual Expenses
The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the applicable line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
This second table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2006 | Ending Account Value June 30, 2006 | Expenses Paid During the Period* | Annualized Expense Ratio | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,027.50 | $ | 1.86 | 0.37 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.96 | $ | 1.86 | 0.37 | % | |||||||||||
Class B | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,021.80 | $ | 6.27 | 1.25 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,018.60 | $ | 6.26 | 1.25 | % | |||||||||||
Class C | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,021.90 | $ | 6.67 | 1.33 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,018.20 | $ | 6.66 | 1.33 | % | |||||||||||
Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,024.00 | $ | 3.26 | 0.65 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.57 | $ | 3.26 | 0.65 | % |
* Expenses are equal to the Fund's annualized expense ratio for the Fund's Class A, B, C and K shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the Fund's most recent fiscal half-year).
11
n The Guardian S&P 500 Index Fund
Semiannual Report
to Shareholders
Jonathan C. Jankus, CFA, Co-Portfolio Manager
Stewart Johnson, Co-Portfolio Manager
Objective:
Seeks to track the investment performance of the Standard and Poor's 500 Composite Stock Price Index (the "S&P 500 Index") which emphasizes securities issued by large U.S. companies
Portfolio:
At least 95% of the Fund's assets are invested in common stocks of companies included in the S&P 500 Index under normal circumstances
Inception Date:
August 7, 2000
Net Assets at
June 30, 2006:
$177,397,024
Top Ten Holdings (As of 6/30/2006)
Company | Percentage of Total Net Assets | ||||||
Exxon Mobil Corp. | 3.21 | % | |||||
General Electric Co. | 2.91 | % | |||||
Citigroup, Inc. | 2.01 | % | |||||
Bank of America Corp. | 1.90 | % | |||||
Microsoft Corp. | 1.76 | % | |||||
Procter & Gamble Co. | 1.56 | % | |||||
Johnson & Johnson | 1.54 | % | |||||
Pfizer, Inc. | 1.50 | % | |||||
American Int'l. Group, Inc. | 1.32 | % | |||||
Altria Group, Inc. | 1.29 | % |
Sector Weightings vs. Index (As of 6/30/2006)
Average Annual Total Returns (For periods ended 6/30/2006)
Inception Date | Year to Date | 1 Yr | 5 Yrs | 10 Yrs | Since Inception | ||||||||||||||||||||||
Class A shares (w/o sales charge) | 8/7/00 | 2.58 | % | 8.19 | % | 2.02 | % | — | –1.21 | % | |||||||||||||||||
(w/ sales charge) | 8/7/00 | –2.04 | % | 3.32 | % | 1.08 | % | — | –1.98 | % | |||||||||||||||||
Class B shares (w/o sales charge) | 8/7/00 | 2.05 | % | 7.31 | % | 1.17 | % | — | –2.03 | % | |||||||||||||||||
(w/ sales charge) | 8/7/00 | –0.95 | % | 4.31 | % | 0.98 | % | — | –2.20 | % | |||||||||||||||||
Class C shares (w/o sales charge) | 8/7/00 | 2.15 | % | 7.43 | % | 1.17 | % | — | –2.03 | % | |||||||||||||||||
(w/ sales charge) | 8/7/00 | 1.15 | % | 6.43 | % | 1.17 | % | — | –2.03 | % | |||||||||||||||||
Class K shares (w/o sales charge) | 5/15/01 | 2.27 | % | 7.58 | % | 1.50 | % | — | 0.52 | % | |||||||||||||||||
(w/ sales charge) | 5/15/01 | 1.27 | % | 6.58 | % | 1.50 | % | — | 0.52 | % | |||||||||||||||||
S&P 500 Index | 2.71 | % | 8.63 | % | 2.50 | % | — | –0.93 | %* | ||||||||||||||||||
*Since Class A shares inception |
About information in this report:
• It is important to consider the Fund's investment objectives, risks, fees and expenses before investing. All funds involve some risk, including possible loss of the principal amount invested.
• Please see the "About Your Semiannual Report" page for a description of the S&P 500 Index.
• All performance data quoted is historical and the results represent past performance and neither guarantee nor predict future investment results. To obtain performance data current to the most recent month (available within 7 business days of the most recent month end), please call us at (800) 221-3253 or visit our website at www.guardianinvestor.com. Current performance may be higher or lower than the performance quoted here. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.
• Total return figures are historical and assume the reinvestment of dividends and distributions and the deduction of all Fund expenses. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on distributions or redemption of shares. Total return figures for Class A shares do not take into account the current maximum sales charge of 4.5%, except where noted. Total return figures for Class B, Class C and Class K shares do not take into account the contingent deferred sales charge applicable to such shares (maximum 3% for Class B shares and 1% for Class C and Class K shares), except where noted.
12
n The Guardian S&P 500 Index Fund
Semiannual Report
to Shareholders
Fund Expenses
By investing in the Fund, you incur two types of costs: (1) transaction costs, including, as applicable, sales charges on purchase payments, reinvested dividends, or other distributions; redemption fees and exchange fees; and (2) ongoing costs, including, as applicable, management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on January 1, 2006 and held for six months ended June 30, 2006.
Actual Expenses
The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the applicable line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2006 | Ending Account Value June 30, 2006 | Expenses Paid During the Period* | Annualized Expense Ratio | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,025.80 | $ | 2.66 | 0.53 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.17 | $ | 2.66 | 0.53 | % | |||||||||||
Class B | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,020.50 | $ | 6.41 | 1.28 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,018.45 | $ | 6.41 | 1.28 | % | |||||||||||
Class C | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,021.50 | $ | 6.42 | 1.28 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,018.45 | $ | 6.41 | 1.28 | % | |||||||||||
Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,022.70 | $ | 4.66 | 0.93 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.18 | $ | 4.66 | 0.93 | % |
* Expenses are equal to the Fund's annualized expense ratio for the Fund's Class A, B, C and K shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the Fund's most recent fiscal half-year).
13
n The Guardian Baillie Gifford International Growth Fund
Semiannual Report
to Shareholders
R. Robin Menzies,
Portfolio Manager
Objective:
Long-term growth of capital
Portfolio:
At least 80% in a diversified portfolio of common stocks and convertible securities of companies domiciled outside the United States
Inception Date:
February 16, 1993
Net Assets at
June 30, 2006:
$70,826,910
Top Ten Holdings (As of 6/30/2006)
Company | Country | Percentage of Total Net Assets | |||||||||
Total S.A. | France | 2.78 | % | ||||||||
UBS AG | Switzerland | 2.75 | % | ||||||||
Atlas Copco AB - Class B | Sweden | 2.73 | % | ||||||||
Royal Dutch Shell PLC - Class A | United Kingdom | 2.66 | % | ||||||||
Essilor Int'l. S.A. | France | 2.53 | % | ||||||||
Danske Bank AS | Denmark | 2.30 | % | ||||||||
Royal Bank of Scotland | United Kingdom | 2.24 | % | ||||||||
GlaxoSmithKline PLC | United Kingdom | 2.22 | % | ||||||||
SAP AG | Germany | 2.13 | % | ||||||||
Kone OYJ - Class B | Finland | 2.01 | % |
Geographical Location vs. Index (As of 6/30/2006)
Average Annual Total Returns (For periods ended 6/30/2006)
Inception Date | Year to Date | 1 Yr | 5 Yrs | 10 Yrs | Since Inception | ||||||||||||||||||||||
Class A shares (w/o sales charge) | 2/16/93 | 8.94 | % | 26.20 | % | 6.28 | % | 5.48 | % | 7.61 | % | ||||||||||||||||
(w/ sales charge) | 2/16/93 | 4.04 | % | 20.52 | % | 5.31 | % | 5.00 | % | 7.24 | % | ||||||||||||||||
Class B shares (w/o sales charge) | 5/1/96 | 8.22 | % | 24.64 | % | 5.02 | % | 4.24 | % | 4.23 | % | ||||||||||||||||
(w/ sales charge) | 5/1/96 | 5.22 | % | 21.64 | % | 4.86 | % | 4.24 | % | 4.23 | % | ||||||||||||||||
Class C shares (w/o sales charge) | 8/7/00 | 8.39 | % | 25.04 | % | 5.14 | % | — | -0.41 | % | |||||||||||||||||
(w/ sales charge) | 8/7/00 | 7.39 | % | 24.04 | % | 5.14 | % | — | -0.41 | % | |||||||||||||||||
Class K shares (w/o sales charge) | 5/15/01 | 8.81 | % | 25.90 | % | 6.10 | % | — | 4.73 | % | |||||||||||||||||
(w/ sales charge) | 5/15/01 | 7.81 | % | 24.90 | % | 6.10 | % | — | 4.73 | % | |||||||||||||||||
MSCI EAFE Growth Index | 9.55 | % | 26.34 | % | 8.46 | % | 4.17 | % | 6.44 | %* | |||||||||||||||||
*Since Class A shares inception |
About information in this report:
• It is important to consider the Fund's investment objectives, risks, fees and expenses before investing. All funds involve some risk, including possible loss of the principal amount invested. International investing has special risks relating to changes in currency rates, foreign taxation, differences in auditing and other financial standards, political uncertainty and greater volatility.
• Please see the "About Your Semiannual Report" page for a description of the Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE) Growth Index.
• All performance data quoted is historical and the results represent past performance and neither guarantee nor predict future investment results. To obtain performance data current to the most recent month (available within 7 business days of the most recent month end), please call us at (800) 221-3253 or visit our website at www.guardianinvestor.com. Current performance may be higher or lower than the performance quoted here. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.
• Total return figures are historical and assume the reinvestment of dividends and distributions and the deduction of all Fund expenses. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on distributions or redemption of shares. Total return figures for Class A shares do not take into account the current maximum sales charge of 4.5%, except where noted. Total return figures for Class B, Class C and Class K shares do not take into account the contingent deferred sales charge applicable to such shares (maximum 3% for Class B shares and 1% for Class C and Class K shares), except where noted.
14
n The Guardian Baillie Gifford International Growth Fund
Semiannual Report
to Shareholders
Fund Expenses
By investing in the Fund, you incur two types of costs: (1) transaction costs, including, as applicable, sales charges on purchase payments, reinvested dividends, or other distributions; redemption fees and exchange fees; and (2) ongoing costs, including, as applicable, management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on January 1, 2006 and held for six months ended June 30, 2006.
Actual Expenses
The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the applicable line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2006 | Ending Account Value June 30, 2006 | Expenses Paid During the Period* | Annualized Expense Ratio | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,089.40 | $ | 9.01 | 1.74 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,016.17 | $ | 8.70 | 1.74 | % | |||||||||||
Class B | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,082.20 | $ | 15.33 | 2.97 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,010.07 | $ | 14.80 | 2.97 | % | |||||||||||
Class C | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,083.90 | $ | 13.80 | 2.67 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,011.55 | $ | 13.32 | 2.67 | % | |||||||||||
Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,088.10 | $ | 10.25 | 1.98 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,014.98 | $ | 9.89 | 1.98 | % |
* Expenses are equal to the Fund's annualized expense ratio for the Fund's Class A, B, C and K shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the Fund's most recent fiscal half-year).
15
n The Guardian Baillie Gifford Emerging Markets Fund
Semiannual Report to Shareholders
Edward H. Hocknell, Portfolio Manager
Objective:
Long-term capital appreciation
Portfolio:
At least 80% in a diversified portfolio of common stocks and convertible securities issued by companies in emerging markets
Inception Date:
May 1, 1997
Net Assets at
June 30, 2006:
$193,155,565
Top Ten Holdings (As of 6/30/2006)
Company | Country | Percentage of Total Net Assets | |||||||||
Petroleo Brasileiro S.A. ADR | Brazil | 4.25 | % | ||||||||
Samsung Corp. | South Korea | 4.15 | % | ||||||||
OAO Gazprom ADR | Russia | 3.96 | % | ||||||||
Itausa-Investimentos Itau S.A. | Brazil | 3.29 | % | ||||||||
LUKOIL ADR | Russia | 3.04 | % | ||||||||
Taiwan Semiconductor Mfg. | Taiwan | 3.03 | % | ||||||||
High Tech Computer Corp. | Taiwan | 2.89 | % | ||||||||
Hon Hai Precision Inds. Co. Ltd. | Taiwan | 2.84 | % | ||||||||
Infosys Technologies Ltd. ADR | India | 2.54 | % | ||||||||
Samsung Heavy Inds. Co. Ltd. | South Korea | 2.50 | % |
Geographical Location vs. Index (As of 6/30/2006)
Average Annual Total Returns (For periods ended 6/30/2006)
Inception Date | Year to Date | 1 Yr | 5 Yrs | 10 Yrs | Since Inception | ||||||||||||||||||||||
Class A shares (w/o sales charge) | 5/1/97 | 10.51 | % | 42.91 | % | 22.20 | % | — | 10.05 | % | |||||||||||||||||
(w/ sales charge) | 5/1/97 | 5.54 | % | 36.48 | % | 21.08 | % | — | 9.50 | % | |||||||||||||||||
Class B shares (w/o sales charge) | 5/6/97 | 9.99 | % | 41.58 | % | 20.91 | % | — | 8.27 | % | |||||||||||||||||
(w/ sales charge) | 5/6/97 | 6.99 | % | 38.58 | % | 20.82 | % | — | 8.27 | % | |||||||||||||||||
Class C shares (w/o sales charge) | 8/7/00 | 10.00 | % | 41.65 | % | 21.00 | % | — | 13.92 | % | |||||||||||||||||
(w/ sales charge) | 8/7/00 | 9.00 | % | 40.65 | % | 21.00 | % | — | 13.92 | % | |||||||||||||||||
Class K shares (w/o sales charge) | 5/15/01 | 10.33 | % | 42.42 | % | 21.83 | % | — | 21.80 | % | |||||||||||||||||
(w/ sales charge) | 5/15/01 | 9.33 | % | 41.42 | % | 21.83 | % | — | 21.80 | % | |||||||||||||||||
MSCI EMF Index | 7.33 | % | 35.91 | % | 21.54 | % | — | 6.82 | %* | ||||||||||||||||||
*Since Class A Shares inception |
About information in this report:
• It is important to consider the Fund's investment objectives, risks, fees and expenses before investing. All funds involve some risk, including possible loss of the principal amount invested. International investing has special risks relating to changes in currency rates, foreign taxation, differences in auditing and other financial standards, political uncertainty and greater volatility. These risks are even greater when investing in emerging markets
• Please see the "About Your Semiannual Report" page for a description of the Morgan Stanley Capital International (MSCI) Emerging Markets Free (EMF) Index.
• All performance data quoted is historical and the results represent past performance and neither guarantee nor predict future investment results. To obtain performance data current to the most recent month (available within 7 business days of the most recent month end), please call us at (800) 221-3253 or visit our website at www.guardianinvestor.com. Current performance may be higher or lower than the performance quoted here. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.
• Total return figures are historical and assume the reinvestment of dividends and distributions and the deduction of all Fund expenses. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on distributions or redemption of shares. Total return figures for Class A shares do not take into account the current maximum sales charge of 4.5%, except where noted. Total return figures for Class B, Class C and Class K shares do not take into account the contingent deferred sales charge applicable to such shares (maximum 3% for Class B shares and 1% for Class C and Class K shares), except where noted.
16
n The Guardian Baillie Gifford Emerging Markets Fund
Semiannual Report to Shareholders
Fund Expenses
By investing in the Fund, you incur two types of costs: (1) transaction costs, including, as applicable, sales charges on purchase payments, reinvested dividends, or other distributions; redemption fees and exchange fees; and (2) ongoing costs, including, as applicable, management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on January 1, 2006 and held for six months ended June 30, 2006.
Actual Expenses
The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the applicable line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2006 | Ending Account Value June 30, 2006 | Expenses Paid During the Period* | Annualized Expense Ratio | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,105.10 | $ | 8.72 | 1.67 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,016.51 | $ | 8.35 | 1.67 | % | |||||||||||
Class B | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,099.90 | $ | 13.43 | 2.58 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,012.00 | $ | 12.87 | 2.58 | % | |||||||||||
Class C | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,100.00 | $ | 13.07 | 2.51 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,012.35 | $ | 12.52 | 2.51 | % | |||||||||||
Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,103.30 | $ | 10.48 | 2.01 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,014.83 | $ | 10.04 | 2.01 | % |
* Expenses are equal to the Fund's annualized expense ratio for the Fund's Class A, B, C and K shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the Fund's most recent fiscal half-year).
17
n The Guardian Investment Quality Bond Fund
Semiannual Report to Shareholders
Howard W. Chin, Co-Portfolio Manager
Robert Crimmins, Co-Portfolio Manager
Objective:
High level of current income and capital appreciation without undue risk to principal
Portfolio:
At least 80% in different kinds of investment grade bonds, such as corporate bonds, mortgage-backed and asset-backed securities, and obligations of the U.S. government and its agencies
Inception Date:
February 16, 1993
Net Assets at
June 30, 2006:
$122,620,544
Top Ten Holdings (As of 6/30/2006)
Company | Coupon | Maturity Date | Percentage of Total Net Assets | ||||||||||||
FNMA | 6.500 | % | (30 yr. TBA) | 3.28 | % | ||||||||||
FHLMC | 5.500 | % | (30 yr. TBA) | 2.35 | % | ||||||||||
Countrywide Home Loans | 5.500 | % | 10/25/2035 | 2.20 | % | ||||||||||
FNMA | 5.000 | % | 4/1/2034 | 2.03 | % | ||||||||||
U.S. Treasury Bonds | 5.375 | % | 2/15/2031 | 1.99 | % | ||||||||||
J.P. Morgan Mtg. Tr. | 6.000 | % | 9/25/2035 | 1.98 | % | ||||||||||
U.S. Treasury Bonds | 6.250 | % | 8/15/2023 | 1.96 | % | ||||||||||
FHLMC | 6.000 | % | 11/1/2034 | 1.94 | % | ||||||||||
FNMA | 5.000 | % | 8/1/2035 | 1.82 | % | ||||||||||
Banc of America Funding Corp. | 5.500 | % | 1/25/2036 | 1.80 | % |
Sector Allocation (As of 6/30/2006 and 12/31/2005)
Average Annual Total Returns (For periods ended 6/30/2006)
Inception Date | Year to Date | 1 Yr | 5 Yrs | 10 Yrs | Since Inception | ||||||||||||||||||||||
Class A shares (w/o sales charge) | 2/16/93 | –0.96 | % | –1.36 | % | 4.72 | % | 5.69 | % | 5.32 | % | ||||||||||||||||
(w/ sales charge) | 2/16/93 | –5.42 | % | –5.80 | % | 3.76 | % | 5.20 | % | 4.96 | % | ||||||||||||||||
Class B shares (w/o sales charge) | 8/7/00 | –1.33 | % | –2.00 | % | 3.96 | % | — | 4.66 | % | |||||||||||||||||
(w/ sales charge) | 8/7/00 | –4.29 | % | –4.94 | % | 3.79 | % | — | 4.52 | % | |||||||||||||||||
Class C shares (w/o sales charge) | 8/7/00 | –1.33 | % | –2.00 | % | 3.96 | % | — | 4.66 | % | |||||||||||||||||
(w/ sales charge) | 8/7/00 | –2.32 | % | –2.98 | % | 3.96 | % | — | 4.66 | % | |||||||||||||||||
Class K shares (w/o sales charge) | 5/15/01 | –1.15 | % | –1.75 | % | 4.30 | % | — | 4.32 | % | |||||||||||||||||
(w/ sales charge) | 5/15/01 | –2.14 | % | –2.73 | % | 4.30 | % | — | 4.32 | % | |||||||||||||||||
Lehman Brothers Aggregate Bond Index | –0.72 | % | –0.81 | % | 4.97 | % | 6.22 | % | 6.16 | %* | |||||||||||||||||
*Since Class A shares inception |
About information in this report:
• It is important to consider the Fund's investment objectives, risks, fees and expenses before investing. All funds involve some risk, including possible loss of the principal amount invested. Investing in bond funds exposes you to the general risk of investing in the debt markets. Duration is a measure of bond price sensitivity to a given change in interest rates. Generally, the higher a bond's duration, the greater its price sensitivity to a given change in interest rates. Bond funds are subject to interest rate risk. When interest rates rise, bond prices generally fall, and when interest rates fall, bond prices generally rise. Currently, interest rates are at historically low levels. Please keep in mind that in this kind of environment, the risk that bond prices may fall when interest rates rise is potentially greater.
• Please see the "About Your Semiannual Report" page for a description of the Lehman Brothers Aggregate Bond Index.
• All performance data quoted is historical and the results represent past performance and neither guarantee nor predict future investment results. To obtain performance data current to the most recent month (available within 7 business days of the most recent month end), please call us at (800) 221-3253 or visit our website at www.guardianinvestor.com. Current performance may be higher or lower than the performance quoted here. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.
• Total return figures are historical and assume the reinvestment of dividends and distributions and the deduction of all Fund expenses. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on distributions or redemption of shares. Total return figures for Class A shares do not take into account the current maximum sales charge of 4.5%, except where noted. Total return figures for Class B, Class C and Class K shares do not take into account the contingent deferred sales charge applicable to such shares (maximum 3% for Class B shares and 1% for Class C and Class K shares), except where noted. Since June 1, 1994, the investment adviser for the Fund has assumed certain ordinary operating expenses for the Fund. Without this assumption of expenses, returns would have been lower.
18
n The Guardian Investment Quality Bond Fund
Semiannual Report to Shareholders
Fund Expenses
By investing in the Fund, you incur two types of costs: (1) transaction costs, including sales charges on purchase payments, reinvested dividends, or other distributions; redemption fees and exchange fees; and (2) ongoing costs, including, as applicable, management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on January 1, 2006 and held for six months ended June 30, 2006.
Actual Expenses
The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the applicable line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2006 | Ending Account Value June 30, 2006 | Expenses Paid During the Period* | Annualized Expense Ratio | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000 | $ | 990.40 | $ | 4.24 | 0.86 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.53 | $ | 4.31 | 0.86 | % | |||||||||||
Class B | |||||||||||||||||||
Actual | $ | 1,000 | $ | 986.70 | $ | 7.93 | 1.61 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,016.81 | $ | 8.05 | 1.61 | % | |||||||||||
Class C | |||||||||||||||||||
Actual | $ | 1,000 | $ | 986.70 | $ | 7.93 | 1.61 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,016.81 | $ | 8.05 | 1.61 | % | |||||||||||
Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 988.50 | $ | 6.21 | 1.26 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,018.55 | $ | 6.31 | 1.26 | % |
* Expenses are equal to the Fund's annualized expense ratio for the Fund's Class A, B, C and K shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the Fund's most recent fiscal half-year).
19
n The Guardian Low Duration Bond Fund
Semiannual Report to Shareholders
Howard W. Chin, Co-Portfolio Manager
Robert Crimmins, Co-Portfolio Manager
Objective:
Seeks a high level of current income, consistent with preservation of capital
Portfolio:
At least 80% in different kinds of investment grade bonds, such as corporate bonds, mortgage-backed and asset-backed securities, and obligations of the U.S. government and its agencies.
Inception Date:
July 30, 2003
Net Assets at
June 30, 2006:
$34,536,201
Top Ten Holdings (As of 6/30/2006)
Company | Coupon | Maturity Date | Percentage of Total Net Assets | ||||||||||||
FNMA | 5.125 | % | 4/15/2011 | 5.13 | % | ||||||||||
U.S. Treasury Notes | 4.500 | % | 11/15/2010 | 4.77 | % | ||||||||||
FNMA | 3.875 | % | 2/15/2010 | 2.53 | % | ||||||||||
Chase Comm'l. Mtg. Secs. Corp. | 6.390 | % | 11/18/2030 | 1.73 | % | ||||||||||
Chase Comm'l. Mtg. Secs. Corp. | 7.370 | % | 6/19/2029 | 1.66 | % | ||||||||||
World Omni Auto Receivables Tr. | 3.820 | % | 11/12/2011 | 1.64 | % | ||||||||||
U.S. Treasury Notes | 5.125 | % | 6/30/2008 | 1.61 | % | ||||||||||
FHLMC | 3.150 | % | 12/16/2008 | 1.61 | % | ||||||||||
Ford Credit Auto Owner Tr. | 4.380 | % | 1/15/2010 | 1.60 | % | ||||||||||
Residential Asset Mtg. Prods., Inc. | 5.670 | % | 4/25/2033 | 1.58 | % |
Sector Allocation (As of 6/30/2006 and 12/31/2005)
Average Annual Total Returns (For periods ended 6/30/2006)
Inception Date | Year to Date | 1 Yr | 5 Yrs | 10 Yrs | Since Inception | ||||||||||||||||||||||
Class A shares (w/o sales charge) | 7/30/03 | 0.98 | % | 1.47 | % | — | — | 1.60 | % | ||||||||||||||||||
(w/ sales charge) | 7/30/03 | –2.05 | % | –1.57 | % | — | — | 1.60 | % | ||||||||||||||||||
Class B shares (w/o sales charge) | 7/30/03 | 0.61 | % | 0.71 | % | — | — | 0.84 | % | ||||||||||||||||||
(w/ sales charge) | 7/30/03 | –2.39 | % | –2.29 | % | — | — | 0.47 | % | ||||||||||||||||||
Class C shares (w/o sales charge) | 7/30/03 | 0.61 | % | 0.71 | % | — | — | 0.84 | % | ||||||||||||||||||
(w/ sales charge) | 7/30/03 | –0.39 | % | –0.29 | % | — | — | 0.84 | % | ||||||||||||||||||
Class K shares (w/o sales charge) | 7/30/03 | 0.78 | % | 1.06 | % | — | — | 1.20 | % | ||||||||||||||||||
(w/ sales charge) | 7/30/03 | –0.22 | % | 0.06 | % | — | — | 1.20 | % | ||||||||||||||||||
Lehman Brothers U.S. Government 1-3 Year Bond Index | 1.08 | % | 1.87 | % | — | — | 1.66 | %* | |||||||||||||||||||
*Since Class A Shares inception |
About information in this report:
• It is important to consider the Fund's investment objectives, risks, fees and expenses before investing. All funds involve some risk, including possible loss of the principal amount invested. Investing in bond funds exposes you to the general risk of investing in the debt markets. Duration is a measure of bond price sensitivity to a given change in interest rates. Generally, the higher a bond's duration, the greater its price sensitivity to a given change in interest rates. Bond funds are subject to interest rate risk. When interest rates rise, bond prices generally fall, and when interest rates fall, bond prices generally rise. Currently, interest rates are at historically low levels. Please keep in mind that in this kind of environment, the risk that bond prices may f all when interest rates rise is potentially greater.
• Low duration bond funds may not be a suitable alternative to money market funds because, unlike money market funds, low duration bond funds do not seek to maintain a stable net asset value and, as a result, are a riskier asset class.
• Please see the "About Your Semiannual Report" page for a description of the Lehman Brothers U.S. Government 1-3 Year Bond Index.
• All performance data quoted is historical and the results represent past performance and neither guarantee nor predict future investment results. To obtain performance data current to the most recent month (available within 7 business days of the most recent month end), please call us at (800) 221-3253 or visit our website at www.guardianinvestor.com. Current performance may be higher or lower than the performance quoted here. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.
• Total return figures are historical and assume the reinvestment of dividends and distributions and the deduction of all Fund expenses. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on distributions or redemption of shares. Total return figures for Class A shares do not take into account the current maximum sales charge of 3.0%, except where noted. Total return figures for Class B, Class C and Class K shares do not take into account the contingent deferred sales charge applicable to such shares (maximum 3% for Class B shares and 1% for Class C and Class K shares), except where noted. Since inception, the investment adviser for the Fund has assumed certain operating expenses for the Fund. Without this assumption of expenses, returns would have been lower.
20
n The Guardian Low Duration Bond Fund
Semiannual Report to Shareholders
Fund Expenses
By investing in the Fund, you incur two types of costs: (1) transaction costs, including, as applicable, sales charges on purchase payments, reinvested dividends, or other distributions; redemption fees and exchange fees; and (2) ongoing costs, including, as applicable, management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on January 1, 2006 and held for six months ended June 30, 2006.
Actual Expenses
The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the applicable line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2006 | Ending Account Value June 30, 2006 | Expenses Paid During the Period* | Annualized Expense Ratio | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,009.80 | $ | 3.99 | 0.80 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.83 | $ | 4.01 | 0.80 | % | |||||||||||
Class B | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,006.10 | $ | 7.71 | 1.55 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,017.11 | $ | 7.75 | 1.55 | % | |||||||||||
Class C | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,006.10 | $ | 7.71 | 1.55 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,017.11 | $ | 7.75 | 1.55 | % | |||||||||||
Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,007.80 | $ | 5.97 | 1.20 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,018.84 | $ | 6.01 | 1.20 | % |
* Expenses are equal to the Fund's annualized expense ratio for the Fund's Class A, B, C and K shares multiplied by the average account value over the period, multiplied by 181/365 (to reflect the Fund's most recent fiscal half-year).
21
n The Guardian High Yield Bond Fund
Semiannual Report to Shareholders
Ho Wang,
Portfolio Manager
Objective:
Seeks current income. Capital appreciation is a secondary objective.
Portfolio:
At least 80% is invested in corporate bonds and other debt securities that, at the time of purchase, are rated below investment grade or are unrated.
Inception Date:
September 1, 1998
Net Assets at
June 30, 2006:
$77,747,262
A Portfolio Management Update
Ho Wang was named Portfolio Manager of The Guardian High Yield Bond Fund in April 2006. Mr. Wang joins Guardian after serving as a Senior Portfolio Manager of High Yield Bonds at Muzinich & Co. Inc., where he was responsible for a $5 billion high yield total return portfolio. Prior to that he was a Portfolio Manager in the Fixed Income Group at Fortis Advisers, Inc., where he managed a high yield mutual fund. He has a Bachelor of Arts in Economics and Political Science from Queens College, City University of New York, and holds an M.B.A. in Finance from St. John's University. Mr. Wang is a certified public accountant.
Average Annual Total Returns (For periods ended 6/30/2006)
Inception Date | Year to Date | 1 Yr | 5 Yrs | 10 Yrs | Since Inception | ||||||||||||||||||||||
Class A shares (w/o sales charge) | 9/1/98 | 1.18 | % | 3.34 | % | 7.11 | % | — | 4.91 | % | |||||||||||||||||
(w/ sales charge) | 9/1/98 | –3.37 | % | –1.31 | % | 6.13 | % | — | 4.29 | % | |||||||||||||||||
Class B shares (w/o sales charge) | 9/1/98 | 0.80 | % | 2.57 | % | 6.34 | % | — | 4.01 | % | |||||||||||||||||
(w/ sales charge) | 9/1/98 | –2.20 | % | –0.43 | % | 6.18 | % | — | 4.01 | % | |||||||||||||||||
Class C shares (w/o sales charge) | 8/7/00 | 0.80 | % | 2.57 | % | 6.34 | % | — | 4.28 | % | |||||||||||||||||
(w/ sales charge) | 8/7/00 | –0.20 | % | 1.57 | % | 6.34 | % | — | 4.28 | % | |||||||||||||||||
Class K shares (w/o sales charge) | 5/15/01 | 0.98 | % | 2.93 | % | 6.69 | % | — | 6.04 | % | |||||||||||||||||
(w/ sales charge) | 5/15/01 | –0.02 | % | 1.93 | % | 6.69 | % | — | 6.04 | % | |||||||||||||||||
Lehman Brothers Corporate High Yield Bond Index | 3.14 | % | 4.80 | % | 8.69 | % | — | 5.88 | %* | ||||||||||||||||||
*Since Class A shares inception |
Bond Quality (As of 6/30/2006 and 12/31/2005)
Source: Standard and Poor's Ratings Group
About information in this report:
• It is important to consider the Fund's investment objectives, risks, fees and expenses before investing. All funds involve some risk, including possible loss of the principal amount invested. Investing in bond funds exposes you to the general risk of investing in the debt markets. Duration is a measure of bond price sensitivity to a given change in interest rates. Generally, the higher a bond's duration, the greater its price sensitivity to a given change in interest rates. Bond funds are subject to interest rate risk. When interest rates rise, bond prices generally fall, and when interest rates fall, bond prices generally rise. Currently, interest rates are at historically low levels. Please keep in mind that in this kind of environment, the risk that bond prices may fall when interest rates rise is potentially greater. Investing in high y ield bonds involves special risks because investments in lower rated and unrated debt securities are subject to greater loss of principal and interest than higher rated securities.
• Please see the "About Your Semiannual Report" page for a description of the Lehman Brothers Corporate High Yield Bond Index.
• All performance data quoted is historical and the results represent past performance and neither guarantee nor predict future investment results. To obtain performance data current to the most recent month (available within 7 business days of the most recent month end), please call us at (800) 221-3253 or visit our website at www.guardianinvestor.com. Current performance may be higher or lower than the performance quoted here. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.
• Total return figures are historical and assume the reinvestment of dividends and distributions and the deduction of all Fund expenses. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on distributions or redemption of shares. Total return figures for Class A shares do not take into account the current maximum sales charge of 4.5%, except where noted. Total return figures for Class B, Class C and Class K shares do not take into account the contingent deferred sales charge applicable to such shares (maximum 3% for Class B shares and 1% for Class C and Class K shares), except where noted.
22
n The Guardian High Yield Bond Fund
Semiannual Report to Shareholders
Top Ten Holdings (As of 6/30/2006)
Company | Coupon | Maturity Date | Percentage of Total Net Assets | ||||||||||||
General Motors Acceptance Corp. | 6.750 | % | 12/1/2014 | 3.66 | % | ||||||||||
Sierra Pacific Resources | 8.625 | % | 3/15/2014 | 2.18 | % | ||||||||||
Lyondell Chemical Co. | 10.875 | % | 5/1/2009 | 1.96 | % | ||||||||||
Nextel Comm., Inc. | 7.375 | % | 8/1/2015 | 1.77 | % | ||||||||||
Mission Energy Hldg. | 13.500 | % | 7/15/2008 | 1.68 | % | ||||||||||
TECO Energy, Inc. | 7.000 | % | 5/1/2012 | 1.66 | % | ||||||||||
Charter Comm. Hldgs. II | 10.250 | % | 9/15/2010 | 1.64 | % | ||||||||||
Equistar Chemicals LP | 10.125 | % | 9/1/2008 | 1.60 | % | ||||||||||
Ford Motor Credit Co. | 7.250 | % | 10/25/2011 | 1.60 | % | ||||||||||
Oregon Steel Mills, Inc. | 10.000 | % | 7/15/2009 | 1.39 | % |
Fund Expenses
By investing in the Fund, you incur two types of costs: (1) transaction costs, including, as applicable, sales charges on purchase payments, reinvested dividends, or other distributions; redemption fees and exchange fees; and (2) ongoing costs, including, as applicable, management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on January 1, 2006 and held for six months ended June 30,2006.
Actual Expenses
The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the applicable line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2006 | Ending Account Value June 30, 2006 | Expenses Paid During the Period* | Annualized Expense Ratio | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,011.80 | $ | 4.24 | 0.85 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.58 | $ | 4.26 | 0.85 | % | |||||||||||
Class B | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,008.00 | $ | 7.97 | 1.60 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,016.86 | $ | 8.00 | 1.60 | % | |||||||||||
Class C | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,008.00 | $ | 7.97 | 1.60 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,016.86 | $ | 8.00 | 1.60 | % | |||||||||||
Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,009.80 | $ | 6.23 | 1.25 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,018.60 | $ | 6.26 | 1.25 | % |
* Expenses are equal to the Fund's annualized expense ratio for the Fund's Class A, B, C and K shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the Fund's most recent fiscal half-year).
23
n The Guardian Tax-Exempt Fund
Semiannual Report to Shareholders
Alexander M. Grant, Jr., Portfolio Manager
Objective:
Seeks to maximize current income exempt from federal income taxes, consistent with the preservation of capital
Portfolio:
At least 80% in investment grade municipal debt obligations
Inception Date:
February 16, 1993
Net Assets at
June 30, 2006:
$99,099,864
Top Ten Holdings (As of 6/30/2006)
Company | Coupon | Maturity Date | Percentage of Total Net Assets | ||||||||||||
Tompkins County, NY Indl. Dev. Agy. Rev. | 3.940 | % | 7/1/2034 | 3.03 | % | ||||||||||
Ohio St. Bldg. Auth. Ref. St. Facs. Hwy. | 5.000 | % | 10/1/2010 | 2.10 | % | ||||||||||
California St. Var. Purp. G.O. | 5.250 | % | 11/1/2027 | 2.09 | % | ||||||||||
New York St. Environmental Facs., | 5.000 | % | 6/15/2025 | 2.09 | % | ||||||||||
North Carolina St. Univ., NC Raleigh Rev. Gen. Ser. A | 5.000 | % | 10/1/2024 | 2.09 | % | ||||||||||
Massachusetts St. G.O. Cons. Ln. Ser. C | 5.000 | % | 9/1/2025 | 2.08 | % | ||||||||||
New York, NY City Tran. Fin. Auth. Fac. Ref. | 5.000 | % | 11/1/2008 | 2.07 | % | ||||||||||
Puerto Rico Comwlth. Hwy. & Transitional Auth. Rev. Ser. K | 5.000 | % | 7/1/2019 | 2.06 | % | ||||||||||
Wilmington, NC Wtr. & Swr. Sys. Rev. Ref. | 5.000 | % | 6/1/2030 | 2.04 | % | ||||||||||
Tobacco Settlement Fin. Corp. | 5.500 | % | 6/1/2012 | 1.82 | % |
Sector Allocation (As of 6/30/2006 and 12/31/2005)
Average Annual Total Returns (For periods ended 6/30/2006)
Inception Date | Year to Date | 1 Yr | 5 Yrs | 10 Yrs | Since Inception | ||||||||||||||||||||||
Class A shares (w/o sales charge) | 2/16/93 | –0.02 | % | 0.15 | % | 5.24 | % | 5.68 | % | 5.01 | % | ||||||||||||||||
(w/ sales charge) | 2/16/93 | –4.52 | % | –4.36 | % | 4.28 | % | 5.19 | % | 4.65 | % | ||||||||||||||||
Class C shares (w/o sales charge) | 8/7/00 | –0.39 | % | –0.60 | % | 4.45 | % | — | 4.93 | % | |||||||||||||||||
(w/ sales charge) | 8/7/00 | –1.39 | % | –1.59 | % | 4.45 | % | — | 4.93 | % | |||||||||||||||||
Lehman Brothers Municipal Bond Index | 0.28 | % | 0.89 | % | 5.05 | % | 5.79 | % | 5.84 | %* | |||||||||||||||||
*Since Class A shares inception |
About information in this report:
• It is important to consider the Fund's investment objectives, risks, fees and expenses before investing. All funds involve some risk, including possible loss of the principal amount invested. Investing in bond funds exposes you to the general risk of investing in the debt markets. Duration is a measure of bond price sensitivity to a given change in interest rates. Generally, the higher a bond's duration, the greater its price sensitivity to a given change in interest rates. Bond funds are subject to interest rate risk. When interest rates rise, bond prices generally fall, and when interest rates fall, bond prices generally rise. Currently interest rates are at historically low levels. Please keep in mind that in this kind of environment, the risk that bond prices may fa ll when interest rates is potentially greater.
Please see the "About Your Semiannual Report" page for a description of the Lehman Brothers Municipal Bond Index.
• All performance data quoted is historical and the results represent past performance and neither guarantee nor predict future investment results. To obtain performance data current to the most recent month (available within 7 business days of the most recent month end), please call us at (800) 221-3253 or visit our website at www.guardianinvestor.com. Current performance may be higher or lower than the performance quoted here. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.
• Total return figures are historical and assume the reinvestment of dividends and distributions and the deduction of all Fund expenses. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on distributions or redemption of shares. Total return figures for Class A shares do not take into account the current maximum sales charge of 4.5%, except where noted. Total return figures for Class C shares do not take into account the contingent deferred sales charges applicable to such shares (maximum of 1%) except where noted. Since June 1, 1994, the investment adviser for the Fund has assumed certain ordinary operating expenses for the Fund. Without this assumption of expenses, returns would have been lower.
24
n The Guardian Tax-Exempt Fund
Semiannual Report to Shareholders
Fund Expenses
By investing in the Fund, you incur two types of costs: (1) transaction costs, including, as applicable, sales charges on purchase payments, reinvested dividends, or other distributions; redemption fees and exchange fees; and (2) ongoing costs, including, as applicable, management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on January 1, 2006 and held for six months ended June 30, 2006.
Actual Expenses
The first table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the applicable line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2006 | Ending Account Value June 30, 2006 | Expenses Paid During the Period* | Annualized Expense Ratio | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000 | $ | 999.80 | $ | 4.21 | 0.85 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.58 | $ | 4.26 | 0.85 | % | |||||||||||
Class C | |||||||||||||||||||
Actual | $ | 1,000 | $ | 996.10 | $ | 7.92 | 1.60 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,016.86 | $ | 8.00 | 1.60 | % |
* Expenses are equal to the Fund's annualized expense ratio for the Fund's Class A, and C shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the Fund's most recent fiscal half-year).
25
n The Guardian Cash Management Fund
Semiannual Report to Shareholders
Alexander M. Grant, Jr., Portfolio Manager
Objective:
Seeks as high a level of current income as is consistent with liquidity and preservation of capital
Portfolio:
Short-term money market investments
Inception Date:
November 3, 1982
Net Assets at
June 30, 2006:
$428,795,172
Portfolio Statistics (as of 6/30/2006)
Average Maturity (days) | 33 | ||||||
Yields: | |||||||
Effective 7-day Yield | With subsidy 4.45% Without subsidy 4.39% | ||||||
Current 7-day Yield | With subsidy 4.36% Without subsidy 4.30% |
Annualized historical yields for the 7-day periods ended June 30, 2006. Effective yield assumes reinvested income. Yields will vary. The yield figures cited represent yield for Class A shares.
Sector Allocation (as of 6/30/2006)
Average Annual Total Returns (For periods ended 6/30/2006)
Inception Date | Year to Date | 1 Yr | 5 Yrs | 10 Yrs | Since Inception | ||||||||||||||||||||||
Class A shares (w/o sales charge) | 9/13/82 | 1.94 | % | 3.44 | % | 1.47 | % | 3.14 | % | 4.90 | % | ||||||||||||||||
Class B shares (w/o sales charge) | 5/1/96 | 1.57 | % | 2.67 | % | 1.00 | % | 2.83 | % | 2.84 | % | ||||||||||||||||
(w/ sales charge) | 5/1/96 | –1.43 | % | –0.33 | % | 0.81 | % | 2.83 | % | 2.84 | % | ||||||||||||||||
Class C shares (w/o sales charge) | 8/7/00 | 1.57 | % | 2.67 | % | 1.00 | % | — | 1.49 | % | |||||||||||||||||
(w/ sales charge) | 8/7/00 | 0.57 | % | 1.67 | % | 1.00 | % | — | 1.49 | % | |||||||||||||||||
Class K shares (w/o sales charge) | 5/15/01 | 1.74 | % | 3.03 | % | 1.16 | % | — | 1.21 | % | |||||||||||||||||
(w/ sales charge) | 5/15/01 | 1.74 | % | 3.03 | % | 1.16 | % | — | 1.21 | % | |||||||||||||||||
Lehman Brothers 3-Month T-Bill Index | 2.20 | % | 4.01 | % | 2.25 | % | 3.85 | % | 5.45 | %* | |||||||||||||||||
*Since Class A Shares inception |
About information in this report:
• It is important to consider the Fund's investment objectives, risks, fees and expenses before investing. All funds involve some risk, including possible loss of the principal amount invested.
• Please see the "About Your Semiannual Report" page for a description of the Lehman Brothers 3-Month Treasury Bill Index.
• The Shares of The Guardian Cash Management Fund are not issued or guaranteed by the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Association (NCUA), the Federal Reserve Board or any other agency. Although the Fund seeks to preserve the value of an investment at $1.00 per share, it is possible to lose money by investing in the Fund.
• All performance data quoted is historical and the results represent past performance and neither guarantee nor predict future investment results. To obtain performance data current to the most recent month (available within 7 business days of the most recent month end), please call us at (800) 221-3253 or visit our website at www.guardianinvestor.com. Current performance may be higher or lower than the performance quoted here. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.
• Total return figures are historical and assume the reinvestment of dividends and distributions and the deduction of all Fund expenses. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on distributions or redemption of shares. Total return figures for Class B, Class C and Class K shares do not take into account the contingent deferred sales charge applicable to such shares (maximum 3% for Class B shares and 1% for Class C and Class K shares), except where noted. Since June 1, 1994, the investment adviser for the Fund has assumed certain ordinary operating expenses of the Fund. Without these expense assumptions, the returns would have been lower.
26
n The Guardian Cash Management Fund
Semiannual Report to Shareholders
Fund Expenses
By investing in the Fund, you incur two types of costs: (1) transaction costs, including sales charges on purchase payments, reinvested dividends, or other distributions; redemption fees and exchange fees; and (2) ongoing costs, including, as applicable, management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on January 1, 2006 and held for six months ended June 30, 2006.
Actual Expenses
The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the applicable line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if transactional costs were included, your costs would have been higher.
Beginning Account Value January 1, 2006 | Ending Account Value June 30, 2006 | Expenses Paid During the Period* | Annualized Expense Ratio | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,019.40 | $ | 4.26 | 0.85 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.58 | $ | 4.26 | 0.85 | % | |||||||||||
Class B | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,015.70 | $ | 8.00 | 1.60 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,016.86 | $ | 8.00 | 1.60 | % | |||||||||||
Class C | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,015.70 | $ | 8.00 | 1.60 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,016.86 | $ | 8.00 | 1.60 | % | |||||||||||
Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,017.40 | $ | 6.25 | 1.25 | % | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,018.60 | $ | 6.26 | 1.25 | % |
* Expenses are equal to the Fund's annualized expense ratio for the Fund's Class A, B, C and K shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the Fund's most recent fiscal half-year).
27
n The Guardian Park Avenue Fund
Schedule of Investments
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
Common Stocks — 99.2% | |||||||||||
Aerospace and Defense — 2.8% | |||||||||||
165,900 | Boeing Co. | $ | 13,588,869 | ||||||||
133,100 | General Dynamics Corp. | 8,712,726 | |||||||||
22,301,595 | |||||||||||
Beverages — 0.9% | |||||||||||
121,500 | PepsiCo., Inc. | 7,294,860 | |||||||||
Biotechnology — 1.1% | |||||||||||
141,300 | Genzyme Corp.* | 8,626,365 | |||||||||
Capital Markets — 5.1% | |||||||||||
110,700 | Goldman Sachs Group, Inc. | 16,652,601 | |||||||||
153,800 | Legg Mason, Inc. | 15,306,176 | |||||||||
170,000 | Northern Trust Corp. | 9,401,000 | |||||||||
41,359,777 | |||||||||||
Chemicals — 1.6% | |||||||||||
203,000 | Dow Chemical Co. | 7,923,090 | |||||||||
105,100 | Rohm & Haas Co. | 5,267,612 | |||||||||
13,190,702 | |||||||||||
Commercial Banks — 3.0% | |||||||||||
142,200 | Compass Bancshares, Inc. | 7,906,320 | |||||||||
625,200 | Synovus Financial Corp. | 16,742,856 | |||||||||
24,649,176 | |||||||||||
Communications Equipment — 2.3% | |||||||||||
918,600 | Nokia Corp. ADR | 18,610,836 | |||||||||
Computers and Peripherals — 5.6% | |||||||||||
344,700 | Apple Computer, Inc.* | 19,689,264 | |||||||||
818,400 | EMC Corp.* | 8,977,848 | |||||||||
521,800 | Hewlett Packard Co. | 16,530,624 | |||||||||
45,197,736 | |||||||||||
Consumer Finance — 5.2% | |||||||||||
231,000 | American Express Co. | 12,293,820 | |||||||||
313,000 | Americredit Corp* | 8,738,960 | |||||||||
432,300 | MasterCard, Inc. – Class A* | 20,750,400 | |||||||||
41,783,180 | |||||||||||
Diversified Telecommunication Services — 4.3% | |||||||||||
927,897 | AT & T, Inc. | 25,879,047 | |||||||||
250,600 | BellSouth Corp. | 9,071,720 | |||||||||
34,950,767 | |||||||||||
Electric Utilities — 1.5% | |||||||||||
211,700 | Exelon Corp. | 12,030,911 | |||||||||
Electrical Equipment — 0.7% | |||||||||||
76,500 | Rockwell Automation, Inc. | 5,508,765 | |||||||||
Electronic Equipment and Instruments — 1.0% | |||||||||||
322,100 | Jabil Circuit, Inc. | 8,245,760 | |||||||||
Energy Equipment and Services — 1.5% | |||||||||||
150,700 | Transocean, Inc.* | 12,104,224 | |||||||||
Food and Staples Retailing — 2.4% | |||||||||||
206,000 | Costco Wholesale Corp. | 11,768,780 | |||||||||
163,700 | Wal-Mart Stores, Inc. | 7,885,429 | |||||||||
19,654,209 | |||||||||||
Food Products — 3.3% | |||||||||||
295,700 | Dean Foods Co.* | 10,997,083 | |||||||||
299,600 | General Mills, Inc. | 15,477,336 | |||||||||
26,474,419 | |||||||||||
Health Care Providers and Services — 1.7% | |||||||||||
119,300 | McKesson Corp. | 5,640,504 | |||||||||
188,000 | UnitedHealth Group, Inc. | 8,418,640 | |||||||||
14,059,144 |
Shares | Value | ||||||||||
Hotels, Restaurants and Leisure — 2.2% | |||||||||||
518,800 | McDonald's Corp. | $ | 17,431,680 | ||||||||
Household Durables — 1.1% | |||||||||||
193,800 | KB Home | 8,885,730 | |||||||||
Household Products — 1.6% | |||||||||||
229,400 | Procter & Gamble Co. | 12,754,640 | |||||||||
Independent Power Producers and Energy Traders — 1.6% | |||||||||||
704,100 | AES Corp.* | 12,990,645 | |||||||||
Industrial Conglomerates — 2.9% | |||||||||||
501,700 | General Electric Co. | 16,536,032 | |||||||||
255,600 | Tyco Int'l. Ltd. | 7,029,000 | |||||||||
23,565,032 | |||||||||||
Information Technology Services — 1.8% | |||||||||||
512,400 | Accenture Ltd. – Class A | 14,511,168 | |||||||||
Insurance — 6.9% | |||||||||||
222,700 | Allstate Corp. | 12,188,371 | |||||||||
534,200 | Aon Corp. | 18,600,844 | |||||||||
231,700 | Fidelity National Financial, Inc. | 9,024,715 | |||||||||
462,000 | Genworth Financial, Inc. – Class A | 16,096,080 | |||||||||
55,910,010 | |||||||||||
Internet Software and Services — 1.4% | |||||||||||
274,600 | eBay, Inc.* | 8,043,034 | |||||||||
108,800 | Yahoo! Inc.* | 3,590,400 | |||||||||
11,633,434 | |||||||||||
Machinery — 3.7% | |||||||||||
290,700 | Caterpillar, Inc. | 21,651,336 | |||||||||
202,200 | Ingersoll-Rand Co. Ltd. – Class A | 8,650,116 | |||||||||
30,301,452 | |||||||||||
Media — 3.3% | |||||||||||
735,600 | Viacom, Inc. – Class B* | 26,363,904 | |||||||||
Multiline Retail — 1.6% | |||||||||||
346,700 | Federated Department Stores, Inc. | 12,689,220 | |||||||||
Oil, Gas and Consumable Fuels — 8.4% | |||||||||||
370,700 | Chevron Corp. | 23,005,642 | |||||||||
507,800 | Enterprise Products Partners LP | 12,644,220 | |||||||||
212,100 | Exxon Mobil Corp. | 13,012,335 | |||||||||
262,300 | Noble Energy, Inc. | 12,291,378 | |||||||||
70,100 | Occidental Petroleum Corp. | 7,188,755 | |||||||||
68,142,330 | |||||||||||
Pharmaceuticals — 8.8% | |||||||||||
478,900 | Abbott Laboratories | 20,884,829 | |||||||||
125,700 | AstraZeneca PLC ADR | 7,519,374 | |||||||||
887,840 | Pfizer, Inc. | 20,837,605 | |||||||||
492,500 | Wyeth | 21,871,925 | |||||||||
71,113,733 | |||||||||||
Road and Rail — 1.9% | |||||||||||
194,300 | Burlington Northern Santa Fe | 15,398,275 | |||||||||
Software — 2.9% | |||||||||||
164,100 | Adobe Systems, Inc.* | 4,982,076 | |||||||||
807,600 | Microsoft Corp. | 18,817,080 | |||||||||
23,799,156 | |||||||||||
Specialty Retail — 1.4% | |||||||||||
219,100 | Home Depot, Inc. | 7,841,589 | |||||||||
118,500 | Tiffany & Co. | 3,912,870 | |||||||||
11,754,459 |
See notes to financial statements.
28
n The Guardian Park Avenue Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
Thrifts and Mortgage Finance — 1.5% | |||||||||||
212,400 | Federal Home Loan Mortgage Corp. | $ | 12,108,924 | ||||||||
Tobacco — 1.7% | |||||||||||
189,600 | Altria Group, Inc. | 13,922,328 | |||||||||
Wireless Telecommunication Services — 0.5% | |||||||||||
133,000 | American Tower Corp.* | 4,138,960 | |||||||||
Total Common Stocks (Cost $758,727,423) | 803,457,506 | ||||||||||
Principal Amount | Value | ||||||||||
Repurchase Agreement — 0.5% | |||||||||||
$ | 3,559,000 | State Street Bank and Trust Co. | |||||||||
repurchase agreement, | |||||||||||
dated 6/30/2006, maturity | |||||||||||
value $3,560,468 at | |||||||||||
4.95%, due 7/3/2006 (1) | |||||||||||
(Cost $3,559,000) | $ | 3,559,000 | |||||||||
Total Investments — 99.7% (Cost $762,286,423) | 807,016,506 | ||||||||||
Cash, Receivables, and Other Assets Less Liabilities — 0.3% | 2,786,959 | ||||||||||
Net Assets — 100% | $ | 809,803,465 |
* Non-income producing security.
(1) The repurchase agreement is fully collateralized by $3,690,000 in U.S. Government Agency, 4.75%, due 12/12/2008, with a value of $3,634,650.
Glossary:
ADR — American Depositary Receipt.
See notes to financial statements.
29
n The Guardian UBS Large Cap Value Fund
Schedule of Investments
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
Common Stocks — 97.7% | |||||||||||
Aerospace and Defense — 2.6% | |||||||||||
17,000 | Lockheed Martin Corp. | $ | 1,219,580 | ||||||||
18,300 | Northrop Grumman Corp. | 1,172,298 | |||||||||
2,391,878 | |||||||||||
Air Freight and Logistics — 1.9% | |||||||||||
14,900 | FedEx Corp. | 1,741,214 | |||||||||
Auto Components — 3.3% | |||||||||||
13,500 | BorgWarner, Inc. | 878,850 | |||||||||
26,100 | Johnson Controls, Inc. | 2,145,942 | |||||||||
3,024,792 | |||||||||||
Automobiles — 0.8% | |||||||||||
13,500 | Harley-Davidson, Inc. | 741,015 | |||||||||
Beverages — 1.2% | |||||||||||
24,300 | Anheuser-Busch Cos., Inc. | 1,107,837 | |||||||||
Biotechnology — 0.7% | |||||||||||
10,800 | Cephalon, Inc.* | 649,080 | |||||||||
Building Products — 1.9% | |||||||||||
59,000 | Masco Corp. | 1,748,760 | |||||||||
Capital Markets — 7.9% | |||||||||||
60,400 | Mellon Financial Corp. | 2,079,572 | |||||||||
64,100 | Morgan Stanley | 4,051,761 | |||||||||
21,700 | Northern Trust Corp. | 1,200,010 | |||||||||
7,331,343 | |||||||||||
Commercial Banks — 8.9% | |||||||||||
60,000 | Fifth Third Bancorp | 2,217,000 | |||||||||
27,200 | PNC Financial Svcs. Group | 1,908,624 | |||||||||
62,100 | Wells Fargo & Co. | 4,165,668 | |||||||||
8,291,292 | |||||||||||
Commercial Services and Supplies — 0.8% | |||||||||||
47,600 | Cendant Corp. | 775,404 | |||||||||
Diversified Financial Services — 10.7% | |||||||||||
33,356 | Bank of America Corp. | 1,604,424 | |||||||||
100,900 | Citigroup, Inc. | 4,867,416 | |||||||||
81,600 | J.P. Morgan Chase & Co. | 3,427,200 | |||||||||
9,899,040 | |||||||||||
Diversified Telecommunication Services — 2.2% | |||||||||||
65,900 | AT & T, Inc. | 1,837,951 | |||||||||
5,567 | Embarq Corp.* | 228,191 | |||||||||
2,066,142 | |||||||||||
Electric Utilities — 6.1% | |||||||||||
45,100 | American Electric Power, Inc. | 1,544,675 | |||||||||
41,000 | Exelon Corp. | 2,330,030 | |||||||||
46,500 | Northeast Utilities | 961,155 | |||||||||
35,900 | Pepco Hldgs., Inc. | 846,522 | |||||||||
5,682,382 | |||||||||||
Energy Equipment and Services — 2.5% | |||||||||||
9,300 | Baker Hughes, Inc. | 761,205 | |||||||||
8,900 | ENSCO Int'l., Inc. | 409,578 | |||||||||
20,500 | GlobalSantaFe Corp. | 1,183,875 | |||||||||
2,354,658 | |||||||||||
Food and Staples Retailing — 3.4% | |||||||||||
32,600 | Costco Wholesale Corp. | 1,862,438 | |||||||||
60,700 | Kroger Co. | 1,326,902 | |||||||||
3,189,340 |
Shares | Value | ||||||||||
Health Care Providers and Services — 3.7% | |||||||||||
8,400 | Caremark Rx, Inc. | $ | 418,908 | ||||||||
23,100 | Medco Health Solutions, Inc.* | 1,323,168 | |||||||||
37,600 | UnitedHealth Group, Inc. | 1,683,728 | |||||||||
3,425,804 | |||||||||||
Information Technology Services — 1.1% | |||||||||||
36,400 | Accenture Ltd. – Class A | 1,030,848 | |||||||||
Insurance — 5.9% | |||||||||||
24,000 | Allstate Corp. | 1,313,520 | |||||||||
43,700 | American Int'l. Group, Inc. | 2,580,485 | |||||||||
18,800 | Hartford Financial Svcs. Group, Inc. | 1,590,480 | |||||||||
5,484,485 | |||||||||||
Internet and Catalog Retail — 0.4% | |||||||||||
26,100 | Expedia, Inc.* | 390,717 | |||||||||
Machinery — 2.2% | |||||||||||
43,200 | Illinois Tool Works, Inc. | 2,052,000 | |||||||||
Media — 5.0% | |||||||||||
55,700 | News Corp. – Class A | 1,068,326 | |||||||||
21,300 | Omnicom Group, Inc. | 1,897,617 | |||||||||
79,000 | The DIRECTV Group, Inc.* | 1,303,500 | |||||||||
9,900 | Univision Comm., Inc. – Class A* | 331,650 | |||||||||
4,601,093 | |||||||||||
Multi–Utilities — 1.8% | |||||||||||
35,000 | NiSource, Inc. | 764,400 | |||||||||
20,100 | Sempra Energy | 914,148 | |||||||||
1,678,548 | |||||||||||
Oil, Gas and Consumable Fuels — 7.9% | |||||||||||
54,900 | Exxon Mobil Corp. | 3,368,115 | |||||||||
47,300 | Marathon Oil Corp. | 3,940,090 | |||||||||
7,308,205 | |||||||||||
Pharmaceuticals — 4.9% | |||||||||||
42,600 | Bristol-Myers Squibb Corp. | 1,101,636 | |||||||||
13,800 | Johnson & Johnson | 826,896 | |||||||||
58,600 | Wyeth | 2,602,426 | |||||||||
4,530,958 | |||||||||||
Road and Rail — 2.2% | |||||||||||
26,100 | Burlington Northern Santa Fe | 2,068,425 | |||||||||
Software — 3.5% | |||||||||||
82,200 | Microsoft Corp. | 1,915,260 | |||||||||
82,400 | Symantec Corp.* | 1,280,496 | |||||||||
3,195,756 | |||||||||||
Thrifts and Mortgage Finance — 1.8% | |||||||||||
28,700 | Federal Home Loan Mortgage Corp. | 1,636,187 | |||||||||
Wireless Telecommunication Services — 2.4% | |||||||||||
111,342 | Sprint Nextel Corp. | 2,225,727 | |||||||||
Total Common Stocks (Cost $67,205,650) | 90,622,930 | ||||||||||
Exchange-Traded Fund — 1.5% | |||||||||||
11,100 | S&P Depositary Receipts Trust | ||||||||||
Series I | |||||||||||
exp. 12/31/2099 | |||||||||||
(Cost $1,360,518) | $ | 1,412,808 |
See notes to financial statements.
30
n The Guardian UBS Large Cap Value Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Principal Amount | Value | ||||||||||
Repurchase Agreement — 0.8% | |||||||||||
$ | 719,000 | State Street Bank and Trust Co. | |||||||||
repurchase agreement, | |||||||||||
dated 6/30/2006, maturity | |||||||||||
value $719,297 at | |||||||||||
4.95%, due 7/3/2006 (1) | |||||||||||
(Cost $719,000) | $ | 719,000 | |||||||||
Total Investments — 100.0% (Cost $69,285,168) | 92,754,738 | ||||||||||
Liabilities in Excess of Cash, Receivables and Other Assets — 0.0% | (34,256 | ) | |||||||||
Net Assets — 100% | $ | 92,720,482 |
* Non-income producing security.
(1) The repurchase agreement is fully collateralized by $805,000 in U.S. Government Agency, 5.50%, due 7/14/2028, with a value of $735,244.
See notes to financial statements.
31
n The Guardian Park Avenue Small Cap Fund
Schedule of Investments
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
Common Stocks — 97.9% | |||||||||||
Aerospace and Defense — 2.5% | |||||||||||
83,500 | AAR Corp.* | $ | 1,856,205 | ||||||||
49,100 | Curtiss-Wright Corp. | 1,516,208 | |||||||||
38,300 | EDO Corp. | 932,222 | |||||||||
4,304,635 | |||||||||||
Air Freight and Logistics — 0.8% | |||||||||||
57,000 | UTi Worldwide, Inc. | 1,438,110 | |||||||||
Airlines — 2.6% | |||||||||||
130,100 | Republic Airways Hldgs., Inc.* | 2,214,302 | |||||||||
89,700 | Skywest, Inc. | 2,224,560 | |||||||||
4,438,862 | |||||||||||
Biotechnology — 2.0% | |||||||||||
26,200 | Cotherix, Inc.* | 225,582 | |||||||||
14,500 | Cubist Pharmaceuticals, Inc.* | 365,110 | |||||||||
10,900 | Digene Corp.* | 422,266 | |||||||||
19,400 | InterMune, Inc.* | 319,130 | |||||||||
76,700 | Keryx Biopharmaceuticals, Inc.* | 1,089,140 | |||||||||
12,800 | Progenics Pharmaceuticals, Inc.* | 307,968 | |||||||||
4,500 | United Therapeutics Corp.* | 259,965 | |||||||||
11,200 | Vertex Pharmaceuticals, Inc.* | 411,152 | |||||||||
3,400,313 | |||||||||||
Capital Markets — 5.9% | |||||||||||
49,500 | Affiliated Managers Group, Inc.* | 4,301,055 | |||||||||
134,700 | Apollo Investment Corp. | 2,489,256 | |||||||||
56,300 | Nuveen Investments – Class A | 2,423,715 | |||||||||
40,000 | optionsXpress Hldgs., Inc. | 932,400 | |||||||||
10,146,426 | |||||||||||
Chemicals — 1.6% | |||||||||||
33,000 | Albemarle Corp. | 1,580,040 | |||||||||
21,100 | Cytec Inds., Inc. | 1,132,226 | |||||||||
2,712,266 | |||||||||||
Commercial Banks — 5.3% | |||||||||||
57,100 | Center Financial Corp. | 1,349,844 | |||||||||
60,300 | East West Bancorp, Inc. | 2,285,973 | |||||||||
22,100 | IBERIABANK Corp. | 1,271,634 | |||||||||
34,200 | PrivateBancorp, Inc. | 1,416,222 | |||||||||
36,200 | Signature Bank* | 1,172,156 | |||||||||
33,500 | SVB Financial Group* | 1,522,910 | |||||||||
9,018,739 | |||||||||||
Commercial Services and Supplies — 8.1% | |||||||||||
43,600 | Knoll, Inc. | 800,496 | |||||||||
189,300 | Korn/Ferry Int'l.* | 3,708,387 | |||||||||
129,600 | Labor Ready, Inc.* | 2,935,440 | |||||||||
137,800 | Resources Connection, Inc.* | 3,447,756 | |||||||||
45,800 | Stericycle, Inc.* | 2,981,580 | |||||||||
13,873,659 | |||||||||||
Communications Equipment — 3.3% | |||||||||||
227,300 | Arris Group, Inc.* | 2,982,176 | |||||||||
119,700 | Polycom, Inc.* | 2,623,824 | |||||||||
5,606,000 | |||||||||||
Computers and Peripherals — 1.2% | |||||||||||
124,300 | Palm, Inc.* | 2,001,230 | |||||||||
Diversified Consumer Services — 0.8% | |||||||||||
34,800 | Bright Horizons Family Solutions, Inc.* | 1,311,612 | |||||||||
Diversified Financial Services — 1.5% | |||||||||||
69,700 | Int'l. Securities Exchange, Inc. | 2,653,479 | |||||||||
Diversified Telecommunication Services — 0.8% | |||||||||||
70,100 | Iowa Telecom. Svcs., Inc. | 1,326,292 |
Shares | Value | ||||||||||
Electric Utilities — 0.9% | |||||||||||
56,400 | ITC Hldgs. Corp. | $ | 1,499,112 | ||||||||
Electronic Equipment and Instruments — 2.4% | |||||||||||
102,800 | Benchmark Electronics, Inc.* | 2,479,536 | |||||||||
46,400 | Plexus Corp.* | 1,587,344 | |||||||||
4,066,880 | |||||||||||
Energy Equipment and Services — 1.3% | |||||||||||
75,100 | TETRA Technologies, Inc.* | 2,274,779 | |||||||||
Food Products — 3.5% | |||||||||||
61,400 | Flowers Foods, Inc. | 1,758,496 | |||||||||
103,400 | Hain Celestial Group, Inc.* | 2,663,584 | |||||||||
81,600 | Reddy Ice Hldgs., Inc. | 1,660,560 | |||||||||
6,082,640 | |||||||||||
Health Care Equipment and Supplies — 5.8% | |||||||||||
114,200 | American Medical Systems Hldgs., Inc.* | 1,901,430 | |||||||||
103,000 | Conceptus, Inc.* | 1,404,920 | |||||||||
29,900 | DJ Orthopedics, Inc.* | 1,101,217 | |||||||||
154,800 | Immucor, Inc.* | 2,976,804 | |||||||||
30,600 | Integra LifeSciences Hldgs.* | 1,187,586 | |||||||||
47,100 | Kensey Nash Corp.* | 1,389,450 | |||||||||
9,961,407 | |||||||||||
Health Care Providers and Services — 0.4% | |||||||||||
18,600 | Amedisys, Inc.* | 704,940 | |||||||||
Hotels, Restaurants and Leisure — 4.3% | |||||||||||
92,000 | Cheesecake Factory, Inc.* | 2,479,400 | |||||||||
44,900 | Chipotle Mexican Grill, Inc. – Class A* | 2,736,655 | |||||||||
57,100 | Orient-Express Hotels Ltd. – Class A | 2,217,764 | |||||||||
7,433,819 | |||||||||||
Household Durables — 2.1% | |||||||||||
50,900 | Snap-On, Inc. | 2,057,378 | |||||||||
60,800 | Standard Pacific Corp. | 1,562,560 | |||||||||
3,619,938 | |||||||||||
Insurance — 3.0% | |||||||||||
83,100 | Endurance Specialty Hldgs. Ltd. | 2,659,200 | |||||||||
54,200 | Hanover Insurance Group, Inc. | 2,572,332 | |||||||||
5,231,532 | |||||||||||
Internet Software and Services — 1.9% | |||||||||||
90,200 | WebEx Comm., Inc.* | 3,205,708 | |||||||||
Life Sciences Tools and Services — 1.2% | |||||||||||
25,400 | Albany Molecular Research, Inc.* | 271,272 | |||||||||
21,000 | Illumina, Inc.* | 622,860 | |||||||||
130,500 | Immunicon Corp.* | 679,905 | |||||||||
15,700 | Serologicals Corp.* | 493,608 | |||||||||
2,067,645 | |||||||||||
Machinery — 2.0% | |||||||||||
39,000 | Actuant Corp. – Class A | 1,948,050 | |||||||||
60,900 | Basin Water, Inc.* | 610,218 | |||||||||
18,600 | IDEX Corp. | 877,920 | |||||||||
3,436,188 | |||||||||||
Metals and Mining — 1.4% | |||||||||||
65,000 | Century Aluminum Co.* | 2,319,850 | |||||||||
Oil, Gas and Consumable Fuels — 4.9% | |||||||||||
28,200 | Alliance Resource Partners LP | 1,021,686 | |||||||||
53,700 | Bill Barrett Corp.* | 1,590,057 | |||||||||
74,300 | DCP Midstream Partners LP | 2,095,260 | |||||||||
98,500 | Mariner Energy, Inc.* | 1,809,445 | |||||||||
63,400 | Teekay LNG Partners LP | 1,927,360 | |||||||||
8,443,808 |
See notes to financial statements.
32
n The Guardian Park Avenue Small Cap Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
Pharmaceuticals — 0.6% | |||||||||||
43,300 | Barrier Therapeutics, Inc.* | $ | 283,182 | ||||||||
59,050 | Salix Pharmaceuticals Ltd.* | 726,315 | |||||||||
1,009,497 | |||||||||||
Real Estate Investment Trusts — 4.1% | |||||||||||
115,900 | Ashford Hospitality Trust | 1,462,658 | |||||||||
76,700 | DiamondRock Hospitality Co. | 1,135,927 | |||||||||
65,500 | New Plan Excel Realty Trust | 1,617,195 | |||||||||
31,800 | Reckson Assocs. Realty Corp. | 1,315,884 | |||||||||
48,500 | Tanger Factory Outlet Centers, Inc. | 1,569,945 | |||||||||
7,101,609 | |||||||||||
Road and Rail — 1.2% | |||||||||||
103,800 | Werner Enterprises, Inc. | 2,104,026 | |||||||||
Semiconductors and Semiconductor Equipment — 3.1% | |||||||||||
77,300 | Netlogic Microsystems, Inc.* | 2,492,925 | |||||||||
87,150 | Varian Semiconductor Equipment Assoc., Inc.* | 2,841,961 | |||||||||
5,334,886 | |||||||||||
Software — 9.2% | |||||||||||
98,000 | Ansoft Corp.* | 2,007,040 | |||||||||
91,900 | Blackboard, Inc.* | 2,661,424 | |||||||||
94,600 | FactSet Research Systems, Inc. | 4,474,580 | |||||||||
189,400 | Informatica Corp.* | 2,492,504 | |||||||||
102,100 | Internet Security Systems, Inc.* | 1,924,585 | |||||||||
169,480 | Parametric Technology Corp.* | 2,154,091 | |||||||||
15,714,224 | |||||||||||
Specialty Retail — 4.8% | |||||||||||
89,700 | Aeropostale, Inc.* | 2,591,433 | |||||||||
134,800 | bebe stores, inc. | 2,078,616 | |||||||||
120,600 | Pacific Sunwear of California, Inc.* | 2,162,358 | |||||||||
65,900 | PETCO Animal Supplies, Inc.* | 1,346,337 | |||||||||
8,178,744 | |||||||||||
Thrifts and Mortgage Finance — 2.1% | |||||||||||
63,500 | BankAtlantic Bancorp, Inc. – Class A | 942,340 | |||||||||
58,600 | BankUnited Financial Corp. – Class A | 1,788,472 | |||||||||
17,600 | Triad Guaranty, Inc.* | 860,288 | |||||||||
3,591,100 | |||||||||||
Wireless Telecommunication Services — 1.3% | |||||||||||
82,300 | SBA Comm. Corp. – Class A* | 2,151,322 | |||||||||
Total Common Stocks (Cost $152,059,196) | 167,765,277 |
Principal Amount | Value | ||||||||||
Repurchase Agreement — 0.5% | |||||||||||
$ | 856,000 | State Street Bank and Trust Co. | |||||||||
repurchase agreement, | |||||||||||
dated 6/30/2006, maturity | |||||||||||
value $856,353 at | |||||||||||
4.95%, due 7/3/2006 (1) | |||||||||||
(Cost $856,000) | $ | 856,000 | |||||||||
Total Investments — 98.4% (Cost $152,915,196) | 168,621,277 | ||||||||||
Cash, Receivables, and Other Assets Less Liabilities — 1.6% | 2,797,330 | ||||||||||
Net Assets — 100% | $ | 171,418,607 |
* Non-income producing security.
(1) The repurchase agreement is fully collateralized by $910,000 in U.S. Government Agency, 4.125%, due 11/18/2009, with a value of $874,738.
See notes to financial statements.
33
n The Guardian UBS Small Cap Value Fund
Schedule of Investments
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
Common Stocks — 97.5% | |||||||||||
Aerospace and Defense — 4.1% | |||||||||||
20,800 | Esterline Technologies Corp.* | $ | 865,072 | ||||||||
4,500 | Hexcel Corp.* | 70,695 | |||||||||
18,900 | Triumph Group, Inc.* | 907,200 | |||||||||
1,842,967 | |||||||||||
Airlines — 1.5% | |||||||||||
20,100 | AMR Corp.* | 510,942 | |||||||||
20,700 | Pinnacle Airlines Corp.* | 145,728 | |||||||||
656,670 | |||||||||||
Auto Components — 1.6% | |||||||||||
42,300 | American Axle & Mfg. Hldgs., Inc. | 723,753 | |||||||||
Biotechnology — 1.2% | |||||||||||
20,500 | Alkermes, Inc.* | 387,860 | |||||||||
9,400 | Keryx Biopharmaceuticals, Inc.* | 133,480 | |||||||||
2,500 | Telik, Inc.* | 41,250 | |||||||||
562,590 | |||||||||||
Building Products — 3.0% | |||||||||||
15,600 | American Woodmark Corp. | 546,624 | |||||||||
8,100 | Elkcorp | 224,937 | |||||||||
22,700 | Trex Co., Inc.* | 587,703 | |||||||||
1,359,264 | |||||||||||
Capital Markets — 3.7% | |||||||||||
59,600 | Apollo Investment Corp. | 1,101,408 | |||||||||
14,100 | Lazard Ltd. | 569,640 | |||||||||
1,671,048 | |||||||||||
Chemicals — 1.1% | |||||||||||
10,700 | Airgas, Inc. | 398,575 | |||||||||
1,900 | Lubrizol Corp. | 75,715 | |||||||||
474,290 | |||||||||||
Commercial Banks — 7.4% | |||||||||||
28,700 | Boston Private Financial Hldgs., Inc. | 800,730 | |||||||||
36,300 | Colonial BancGroup, Inc. | 932,184 | |||||||||
8,800 | Cullen/Frost Bankers, Inc. | 504,240 | |||||||||
27,500 | Placer Sierra Bancshares | 637,725 | |||||||||
16,700 | South Financial Group, Inc. | 441,047 | |||||||||
3,315,926 | |||||||||||
Commercial Services and Supplies — 4.0% | |||||||||||
27,000 | Coinstar, Inc.* | 646,380 | |||||||||
19,600 | Heidrick & Struggles Int'l., Inc.* | 663,264 | |||||||||
18,400 | McGrath Rentcorp | 511,704 | |||||||||
1,821,348 | |||||||||||
Communications Equipment — 1.5% | |||||||||||
12,900 | Harris Corp. | 535,479 | |||||||||
7,100 | Plantronics, Inc. | 157,691 | |||||||||
693,170 | |||||||||||
Containers and Packaging — 1.0% | |||||||||||
52,500 | Caraustar Inds., Inc.* | 472,500 | |||||||||
Diversified Consumer Services — 2.0% | |||||||||||
28,900 | Jackson Hewitt Tax Svc., Inc. | 906,015 | |||||||||
Diversified Financial Services — 1.3% | |||||||||||
51,600 | Primus Guaranty Ltd.* | 572,760 | |||||||||
Electric Utilities — 1.6% | |||||||||||
25,600 | Hawaiian Electric Inds., Inc. | 714,496 | |||||||||
Electrical Equipment — 1.3% | |||||||||||
10,100 | Regal-Beloit Corp. | 445,915 | |||||||||
12,900 | Ultralife Batteries, Inc.* | 130,677 | |||||||||
576,592 |
Shares | Value | ||||||||||
Electronic Equipment and Instruments — 1.7% | |||||||||||
1,100 | Methode Electronics, Inc. | $ | 11,561 | ||||||||
32,100 | Newport Corp.* | 517,452 | |||||||||
8,700 | Park Electrochemical Corp. | 224,025 | |||||||||
753,038 | |||||||||||
Energy Equipment and Services — 2.3% | |||||||||||
17,700 | Bristow Group, Inc.* | 637,200 | |||||||||
8,600 | Oceaneering Int'l., Inc.* | 394,310 | |||||||||
1,031,510 | |||||||||||
Food and Staples Retailing — 0.9% | |||||||||||
19,100 | Nash Finch Co. | 406,639 | |||||||||
Gas Utilities — 3.2% | |||||||||||
16,500 | AGL Resources, Inc. | 628,980 | |||||||||
24,500 | Equitable Resources, Inc. | 820,750 | |||||||||
1,449,730 | |||||||||||
Health Care Equipment and Supplies — 2.4% | |||||||||||
16,700 | Cooper Cos., Inc. | 739,643 | |||||||||
17,200 | Syneron Medical Ltd.* | 359,136 | |||||||||
1,098,779 | |||||||||||
Health Care Providers and Services — 6.0% | |||||||||||
11,600 | Amedisys, Inc.* | 439,640 | |||||||||
26,100 | Centene Corp.* | 614,133 | |||||||||
16,100 | LifePoint Hospitals, Inc.* | 517,293 | |||||||||
20,900 | Molina Healthcare, Inc.* | 795,245 | |||||||||
26,700 | Option Care, Inc. | 319,866 | |||||||||
2,686,177 | |||||||||||
Hotels, Restaurants and Leisure — 1.9% | |||||||||||
51,100 | Caribou Coffee Co., Inc.* | 381,206 | |||||||||
12,400 | Vail Resorts, Inc.* | 460,040 | |||||||||
841,246 | |||||||||||
Household Durables — 5.5% | |||||||||||
45,200 | Comstock Homebuilding Cos., Inc.* | 286,116 | |||||||||
14,400 | Jarden Corp.* | 438,480 | |||||||||
15,800 | Lenox Group, Inc.* | 112,022 | |||||||||
6,900 | Lifetime Brands, Inc. | 149,523 | |||||||||
9,300 | Ryland Group, Inc. | 405,201 | |||||||||
49,600 | Tempur-Pedic Int'l., Inc.* | 670,096 | |||||||||
17,600 | The Yankee Candle Co., Inc. | 440,176 | |||||||||
2,501,614 | |||||||||||
Information Technology Services — 0.8% | |||||||||||
29,600 | Bearingpoint, Inc.* | 247,752 | |||||||||
22,200 | SM&A* | 135,420 | |||||||||
383,172 | |||||||||||
Insurance — 6.2% | |||||||||||
10,300 | AmerUs Group Co. | 603,065 | |||||||||
99,500 | KMG America Corp.* | 882,565 | |||||||||
19,900 | National Financial Partners Corp. | 881,769 | |||||||||
26,600 | Seabright Insurance Hldgs.* | 428,526 | |||||||||
2,795,925 | |||||||||||
Internet Software and Services — 1.5% | |||||||||||
94,400 | Tumbleweed Comm. Corp.* | 269,040 | |||||||||
19,400 | Websense, Inc.* | 398,476 | |||||||||
667,516 | |||||||||||
Leisure Equipment and Products — 2.0% | |||||||||||
57,300 | Nautilus, Inc. | 900,183 | |||||||||
Life Sciences Tools and Services — 0.4% | |||||||||||
3,500 | Dionex Corp.* | 191,310 |
See notes to financial statements.
34
n The Guardian UBS Small Cap Value Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
Machinery — 1.9% | |||||||||||
12,500 | Briggs & Stratton Corp. | $ | 388,875 | ||||||||
5,800 | Harsco Corp. | 452,168 | |||||||||
841,043 | |||||||||||
Media — 3.1% | |||||||||||
18,100 | ADVO, Inc. | 445,441 | |||||||||
21,400 | Carmike Cinemas, Inc. | 451,112 | |||||||||
35,000 | Radio One, Inc.* | 259,000 | |||||||||
24,300 | Saga Comm., Inc.* | 220,158 | |||||||||
1,375,711 | |||||||||||
Multiline Retail — 0.5% | |||||||||||
15,900 | Tuesday Morning Corp. | 209,085 | |||||||||
Oil, Gas and Consumable Fuels — 2.6% | |||||||||||
13,100 | Cimarex Energy Co. | 563,300 | |||||||||
27,000 | EXCO Resources, Inc.* | 307,800 | |||||||||
6,900 | Foundation Coal Hldgs., Inc. | 323,817 | |||||||||
1,194,917 | |||||||||||
Personal Products — 2.0% | |||||||||||
15,900 | Chattem, Inc.* | 482,883 | |||||||||
29,200 | Nu Skin Enterprises, Inc. | 433,620 | |||||||||
916,503 | |||||||||||
Pharmaceuticals — 0.6% | |||||||||||
23,400 | Connetics Corp.* | 275,184 | |||||||||
Real Estate Investment Trusts — 5.2% | |||||||||||
61,300 | Capital Lease Fdg., Inc. | 699,433 | |||||||||
22,000 | LaSalle Hotel Pptys. | 1,018,600 | |||||||||
4,200 | RAIT Investment Trust | 122,640 | |||||||||
17,600 | Thornburg Mortgage, Inc. | 490,512 | |||||||||
2,331,185 | |||||||||||
Road and Rail — 2.1% | |||||||||||
15,375 | Genesee & Wyoming, Inc.* | 545,351 | |||||||||
1,100 | Landstar System, Inc. | 51,953 | |||||||||
8,300 | YRC Worldwide, Inc.* | 349,513 | |||||||||
946,817 | |||||||||||
Software — 0.5% | |||||||||||
7,900 | Reynolds & Reynolds Co. | 242,293 | |||||||||
Specialty Retail — 1.3% | |||||||||||
28,600 | PETCO Animal Supplies, Inc.* | 584,298 | |||||||||
Textiles, Apparel and Luxury Goods — 1.7% | |||||||||||
12,000 | Movado Group, Inc. | 275,400 | |||||||||
28,200 | True Religion Apparel, Inc.* | 499,140 | |||||||||
774,540 | |||||||||||
Thrifts and Mortgage Finance — 3.5% | |||||||||||
5,000 | Accredited Home Lenders Hldg. Co.* | 239,050 | |||||||||
15,500 | IndyMac Bancorp, Inc. | 710,675 | |||||||||
49,100 | Ocwen Financial Corp.* | 624,061 | |||||||||
1,573,786 | |||||||||||
Trading Companies and Distributors — 0.7% | |||||||||||
13,400 | Interline Brands, Inc.* | 313,292 | |||||||||
Wireless Telecommunication Services — 0.7% | |||||||||||
51,300 | InPhonic, Inc.* | 323,190 | |||||||||
Total Common Stocks (Cost $40,386,642) | 43,972,072 |
Principal Amount | Value | ||||||||||
Repurchase Agreement — 2.0% | |||||||||||
$ | 898,000 | State Street Bank and Trust Co. | |||||||||
repurchase agreement, | |||||||||||
dated 6/30/2006, maturity | |||||||||||
value $898,370 at | |||||||||||
4.95%, due 7/3/2006 (1) | |||||||||||
(Cost $898,000) | $ | 898,000 | |||||||||
Total Investments — 99.5% (Cost $41,284,642) | 44,870,072 | ||||||||||
Cash, Receivables, and Other Assets Less Liabilities — 0.5% | 235,158 | ||||||||||
Net Assets — 100% | $ | 45,105,230 |
* Non-income producing security.
(1) The repurchase agreement is fully collateralized by $1,005,000 in U.S. Government Agency, 5.50%, due 7/14/2028, with a value of $917,913.
See notes to financial statements.
35
n The Guardian Asset Allocation Fund
Schedule of Investments
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
Common Stocks — 4.7% | |||||||||||
Aerospace and Defense — 0.1% | |||||||||||
444 | Boeing Co. | $ | 36,368 | ||||||||
536 | Honeywell Int'l., Inc. | 21,601 | |||||||||
446 | Lockheed Martin Corp. | 31,996 | |||||||||
312 | Northrop Grumman Corp. | 19,987 | |||||||||
424 | Raytheon Co. | 18,897 | |||||||||
636 | United Technologies Corp. | 40,335 | |||||||||
169,184 | |||||||||||
Air Freight and Logistics — 0.0% | |||||||||||
619 | United Parcel Svc., Inc. – Class B | 50,962 | |||||||||
Automobiles — 0.1% | |||||||||||
2,735 | Ford Motor Co. | 18,953 | |||||||||
338 | General Motors Corp. | 10,069 | |||||||||
619 | Harley-Davidson, Inc. | 33,977 | |||||||||
62,999 | |||||||||||
Beverages — 0.1% | |||||||||||
538 | Anheuser-Busch Cos., Inc. | 24,527 | |||||||||
1,095 | Coca-Cola Co. | 47,107 | |||||||||
967 | PepsiCo., Inc. | 58,059 | |||||||||
129,693 | |||||||||||
Biotechnology — 0.1% | |||||||||||
742 | Amgen, Inc.* | 48,401 | |||||||||
417 | Biogen Idec, Inc.* | 19,320 | |||||||||
426 | MedImmune, Inc.* | 11,544 | |||||||||
79,265 | |||||||||||
Building Products — 0.0% | |||||||||||
508 | Masco Corp. | 15,057 | |||||||||
Capital Markets — 0.1% | |||||||||||
194 | Ameriprise Financial, Inc. | 8,666 | |||||||||
347 | Bank of New York, Inc. | 11,173 | |||||||||
48 | Charles Schwab Corp. | 767 | |||||||||
300 | Goldman Sachs Group, Inc. | 45,129 | |||||||||
160 | Lehman Brothers Hldgs., Inc. | 10,424 | |||||||||
756 | Mellon Financial Corp. | 26,029 | |||||||||
410 | Merrill Lynch & Co., Inc. | 28,520 | |||||||||
452 | Morgan Stanley | 28,571 | |||||||||
57 | State Street Corp. | 3,311 | |||||||||
162,590 | |||||||||||
Chemicals — 0.1% | |||||||||||
567 | Dow Chemical Co. | 22,130 | |||||||||
335 | E.I. Du Pont de Nemours & Co. | 13,936 | |||||||||
385 | Monsanto Co. | 32,413 | |||||||||
574 | PPG Inds., Inc. | 37,884 | |||||||||
170 | Rohm & Haas Co. | 8,521 | |||||||||
114,884 | |||||||||||
Commercial Banks — 0.2% | |||||||||||
872 | BB&T Corp. | 36,266 | |||||||||
617 | Fifth Third Bancorp | 22,798 | |||||||||
1,410 | KeyCorp | 50,309 | |||||||||
712 | U.S. Bancorp | 21,987 | |||||||||
1,292 | Wachovia Corp. | 69,871 | |||||||||
750 | Wells Fargo & Co. | 50,310 | |||||||||
251,541 | |||||||||||
Commercial Services and Supplies — 0.0% | |||||||||||
796 | Cendant Corp. | 12,967 | |||||||||
307 | Cintas Corp. | 12,206 | |||||||||
479 | Waste Management, Inc. | 17,187 | |||||||||
42,360 |
Shares | Value | ||||||||||
Communications Equipment — 0.1% | |||||||||||
2,325 | Cisco Systems, Inc.* | $ | 45,407 | ||||||||
1,682 | Corning, Inc.* | 40,688 | |||||||||
2,075 | Motorola, Inc. | 41,811 | |||||||||
968 | QUALCOMM, Inc. | 38,788 | |||||||||
166,694 | |||||||||||
Computers and Peripherals — 0.2% | |||||||||||
776 | Dell, Inc.* | 18,942 | |||||||||
2,986 | EMC Corp.* | 32,757 | |||||||||
1,615 | Hewlett Packard Co. | 51,163 | |||||||||
866 | Int'l. Business Machines | 66,526 | |||||||||
6,516 | Sun Microsystems, Inc.* | 27,041 | |||||||||
196,429 | |||||||||||
Consumer Finance — 0.1% | |||||||||||
972 | American Express Co. | 51,730 | |||||||||
146 | Capital One Financial Corp. | 12,475 | |||||||||
865 | SLM Corp. | 45,776 | |||||||||
109,981 | |||||||||||
Distributors — 0.0% | |||||||||||
667 | Genuine Parts Co. | 27,787 | |||||||||
Diversified Financial Services — 0.3% | |||||||||||
3,520 | Bank of America Corp. | 169,312 | |||||||||
3,073 | Citigroup, Inc. | 148,241 | |||||||||
466 | J.P. Morgan Chase & Co. | 19,572 | |||||||||
337,125 | |||||||||||
Diversified Telecommunication Services — 0.1% | |||||||||||
2,350 | AT & T, Inc. | 65,541 | |||||||||
1,378 | BellSouth Corp. | 49,884 | |||||||||
85 | Embarq Corp.* | 3,484 | |||||||||
1,371 | Verizon Comm. | 45,915 | |||||||||
164,824 | |||||||||||
Electric Utilities — 0.1% | |||||||||||
505 | Entergy Corp. | 35,729 | |||||||||
250 | Exelon Corp. | 14,207 | |||||||||
728 | FPL Group, Inc. | 30,125 | |||||||||
495 | Progress Energy, Inc. | 21,221 | |||||||||
1,250 | Southern Co. | 40,062 | |||||||||
141,344 | |||||||||||
Electrical Equipment — 0.0% | |||||||||||
424 | Cooper Inds. Ltd. – Class A | 39,398 | |||||||||
Electronic Equipment and Instruments — 0.0% | |||||||||||
2,123 | Solectron Corp.* | 7,261 | |||||||||
Energy Equipment and Services — 0.1% | |||||||||||
705 | Baker Hughes, Inc. | 57,704 | |||||||||
1,162 | Schlumberger Ltd. | 75,658 | |||||||||
133,362 | |||||||||||
Food and Staples Retailing — 0.1% | |||||||||||
1,240 | CVS Corp. | 38,068 | |||||||||
1,009 | Kroger Co. | 22,057 | |||||||||
699 | Safeway, Inc. | 18,174 | |||||||||
152 | Supervalu, Inc. | 4,666 | |||||||||
1,295 | Wal-Mart Stores, Inc. | 62,380 | |||||||||
145,345 | |||||||||||
Food Products — 0.1% | |||||||||||
994 | Archer-Daniels-Midland Co. | 41,032 | |||||||||
321 | Campbell Soup Co. | 11,912 | |||||||||
162 | ConAgra Foods, Inc. | 3,582 | |||||||||
128 | General Mills, Inc. | 6,613 | |||||||||
224 | H.J. Heinz Co. | 9,233 |
See notes to financial statements.
36
n The Guardian Asset Allocation Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
234 | Hershey Co. | $ | 12,887 | ||||||||
512 | Kellogg Co. | 24,796 | |||||||||
461 | W.M. Wrigley Jr. Co. | 20,911 | |||||||||
130,966 | |||||||||||
Health Care Equipment and Supplies — 0.1% | |||||||||||
328 | Baxter Int'l., Inc. | 12,057 | |||||||||
22 | Becton Dickinson & Co., Inc. | 1,345 | |||||||||
632 | Boston Scientific Corp.* | 10,643 | |||||||||
272 | C.R. Bard, Inc. | 19,927 | |||||||||
956 | Medtronic, Inc. | 44,856 | |||||||||
584 | St. Jude Medical, Inc.* | 18,933 | |||||||||
588 | Stryker Corp. | 24,761 | |||||||||
384 | Zimmer Hldgs., Inc.* | 21,780 | |||||||||
154,302 | |||||||||||
Health Care Providers and Services — 0.1% | |||||||||||
596 | AmerisourceBergen Corp. | 24,984 | |||||||||
246 | Cigna Corp. | 24,233 | |||||||||
306 | HCA, Inc. | 13,204 | |||||||||
1,529 | Health Management Assoc., Inc. – Class A | 30,137 | |||||||||
378 | McKesson Corp. | 17,872 | |||||||||
1,512 | Tenet Healthcare Corp.* | 10,554 | |||||||||
258 | WellPoint, Inc.* | 18,775 | |||||||||
139,759 | |||||||||||
Hotels, Restaurants and Leisure — 0.1% | |||||||||||
90 | Carnival Corp. | 3,757 | |||||||||
551 | McDonald's Corp. | 18,514 | |||||||||
1,286 | Starbucks Corp.* | 48,559 | |||||||||
70,830 | |||||||||||
Household Products — 0.1% | |||||||||||
614 | Clorox Co. | 37,436 | |||||||||
55 | Kimberly-Clark Corp. | 3,393 | |||||||||
1,874 | Procter & Gamble Co. | 104,194 | |||||||||
145,023 | |||||||||||
Independent Power Producers and Energy Traders — 0.0% | |||||||||||
1,368 | AES Corp.* | 25,240 | |||||||||
184 | TXU Corp. | 11,001 | |||||||||
36,241 | |||||||||||
Industrial Conglomerates — 0.2% | |||||||||||
636 | 3M Co. | 51,370 | |||||||||
5,003 | General Electric Co. | 164,899 | |||||||||
1,024 | Tyco Int'l. Ltd. | 28,160 | |||||||||
244,429 | |||||||||||
Information Technology Services — 0.1% | |||||||||||
242 | Automatic Data Processing, Inc. | 10,975 | |||||||||
1,125 | Electronic Data Systems Corp. | 27,067 | |||||||||
116 | First Data Corp. | 5,225 | |||||||||
957 | Paychex, Inc. | 37,304 | |||||||||
108 | Sabre Hldgs. Corp. – Class A | 2,376 | |||||||||
82,947 | |||||||||||
Insurance — 0.2% | |||||||||||
153 | AFLAC, Inc. | 7,092 | |||||||||
408 | Allstate Corp. | 22,330 | |||||||||
1,615 | American Int'l. Group, Inc. | 95,366 | |||||||||
362 | Chubb Corp. | 18,064 | |||||||||
558 | Loews Corp. | 19,781 | |||||||||
664 | Marsh & McLennan Cos., Inc. | 17,855 | |||||||||
884 | MetLife, Inc. | 45,270 | |||||||||
1,012 | Progressive Corp. | 26,018 | |||||||||
687 | St. Paul Travelers Cos., Inc. | 30,626 | |||||||||
282,402 |
Shares | Value | ||||||||||
Internet Software and Services — 0.0% | |||||||||||
784 | Yahoo! Inc.* | $ | 25,872 | ||||||||
Leisure Equipment and Products — 0.0% | |||||||||||
849 | Eastman Kodak Co. | 20,189 | |||||||||
1,448 | Mattel, Inc. | 23,907 | |||||||||
44,096 | |||||||||||
Machinery — 0.1% | |||||||||||
452 | Caterpillar, Inc. | 33,665 | |||||||||
391 | Deere & Co. | 32,645 | |||||||||
66,310 | |||||||||||
Media — 0.2% | |||||||||||
374 | CBS Corp. – Class B | 10,117 | |||||||||
1,846 | Clear Channel Comm., Inc. | 57,134 | |||||||||
1,017 | Comcast Corp. – Class A* | 33,296 | |||||||||
429 | Gannett Co., Inc. | 23,994 | |||||||||
495 | New York Times Co. – Class A | 12,147 | |||||||||
2,712 | Time Warner, Inc. | 46,918 | |||||||||
77 | Tribune Co. | 2,497 | |||||||||
374 | Viacom, Inc. – Class B* | 13,404 | |||||||||
967 | Walt Disney Co. | 29,010 | |||||||||
228,517 | |||||||||||
Metals and Mining — 0.0% | |||||||||||
1,064 | Alcoa, Inc. | 34,431 | |||||||||
Multiline Retail — 0.1% | |||||||||||
702 | Kohl's Corp.* | 41,502 | |||||||||
481 | Target Corp. | 23,507 | |||||||||
65,009 | |||||||||||
Multi–Utilities — 0.0% | |||||||||||
404 | Duke Energy Corp. | 11,865 | |||||||||
82 | Public Svc. Enterprise Group, Inc. | 5,422 | |||||||||
17,287 | |||||||||||
Oil, Gas and Consumable Fuels — 0.4% | |||||||||||
412 | Anadarko Petroleum Corp. | 19,648 | |||||||||
1,774 | Chevron Corp. | 110,095 | |||||||||
1,178 | ConocoPhillips | 77,194 | |||||||||
1,936 | El Paso Corp. | 29,040 | |||||||||
3,898 | Exxon Mobil Corp. | 239,142 | |||||||||
475,119 | |||||||||||
Personal Products — 0.0% | |||||||||||
852 | Avon Products, Inc. | 26,412 | |||||||||
Pharmaceuticals — 0.2% | |||||||||||
216 | Allergan, Inc. | 23,168 | |||||||||
962 | Bristol-Myers Squibb Corp. | 24,878 | |||||||||
449 | Eli Lilly & Co. | 24,816 | |||||||||
1,772 | Johnson & Johnson | 106,178 | |||||||||
979 | King Pharmaceuticals, Inc.* | 16,643 | |||||||||
4,515 | Pfizer, Inc. | 105,967 | |||||||||
475 | Schering-Plough Corp. | 9,039 | |||||||||
310,689 | |||||||||||
Real Estate Investment Trusts — 0.0% | |||||||||||
483 | Plum Creek Timber Co., Inc. | 17,146 | |||||||||
472 | Simon Ppty. Group, Inc. | 39,148 | |||||||||
56,294 | |||||||||||
Road and Rail — 0.1% | |||||||||||
552 | Burlington Northern Santa Fe | 43,746 | |||||||||
374 | Union Pacific Corp. | 34,767 | |||||||||
78,513 |
See notes to financial statements.
37
n The Guardian Asset Allocation Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
Semiconductors and Semiconductor Equipment — 0.2% | |||||||||||
54 | Analog Devices, Inc. | $ | 1,736 | ||||||||
548 | Applied Materials, Inc. | 8,921 | |||||||||
432 | Broadcom Corp. – Class A* | 12,982 | |||||||||
670 | Freescale Semiconductor, Inc. – Class B* | 19,698 | |||||||||
3,330 | Intel Corp. | 63,104 | |||||||||
1,048 | KLA-Tencor Corp. | 43,565 | |||||||||
249 | Linear Technology Corp. | 8,339 | |||||||||
494 | Maxim Integrated Products, Inc. | 15,862 | |||||||||
702 | Micron Technology, Inc.* | 10,572 | |||||||||
1,503 | Texas Instruments, Inc. | 45,526 | |||||||||
230,305 | |||||||||||
Software — 0.2% | |||||||||||
1,104 | Adobe Systems, Inc.* | 33,517 | |||||||||
490 | CA, Inc. | 10,070 | |||||||||
5,145 | Microsoft Corp. | 119,878 | |||||||||
1,479 | Symantec Corp.* | 22,984 | |||||||||
186,449 | |||||||||||
Specialty Retail — 0.1% | |||||||||||
716 | Bed, Bath & Beyond, Inc.* | 23,750 | |||||||||
645 | Best Buy Co., Inc. | 35,372 | |||||||||
247 | Gap, Inc. | 4,298 | |||||||||
943 | Home Depot, Inc. | 33,750 | |||||||||
315 | Lowe's Cos., Inc. | 19,111 | |||||||||
648 | Staples, Inc. | 15,759 | |||||||||
132,040 | |||||||||||
Textiles, Apparel and Luxury Goods — 0.0% | |||||||||||
455 | NIKE, Inc. – Class B | 36,855 | |||||||||
Thrifts and Mortgage Finance — 0.0% | |||||||||||
350 | Federal National Mortgage Assn. | 16,835 | |||||||||
645 | Washington Mutual, Inc. | 29,399 | |||||||||
46,234 | |||||||||||
Tobacco — 0.1% | |||||||||||
1,216 | Altria Group, Inc. | 89,291 | |||||||||
509 | UST, Inc. | 23,002 | |||||||||
112,293 | |||||||||||
Wireless Telecommunication Services — 0.1% | |||||||||||
364 | ALLTEL Corp. | 23,234 | |||||||||
1,710 | Sprint Nextel Corp. | 34,183 | |||||||||
57,417 | |||||||||||
Total Common Stocks (Cost $5,885,443) | 6,065,126 | ||||||||||
Mutual Fund — 92.8% | |||||||||||
Equity — 92.8% | |||||||||||
13,845,445 | The Guardian S&P 500 Index | ||||||||||
Fund, Class A† (1) | |||||||||||
(Cost $120,213,074) | $ | 120,732,285 |
Principal Amount | Value | ||||||||||
U.S. Government Securities — 0.8% | |||||||||||
U.S. Treasury Bills — 0.8% | |||||||||||
U.S. Treasury Bills | |||||||||||
$ | 800,000 | 4.675% due 8/31/2006 (2) | $ | 793,663 | |||||||
300,000 | 4.80% due 9/21/2006 (2) | 296,757 | |||||||||
Total U.S. Government Securities (Cost $1,090,420) | 1,090,420 | ||||||||||
Repurchase Agreement — 1.7% | |||||||||||
$ | 2,175,000 | State Street Bank and Trust Co. | |||||||||
repurchase agreement, | |||||||||||
dated 6/30/2006, maturity | |||||||||||
value $2,175,897 at | |||||||||||
4.95%, due 7/3/2006 (3) | |||||||||||
(Cost $2,175,000) | $ | 2,175,000 | |||||||||
Total Investments — 100.0% (Cost $129,363,937) | 130,062,831 | ||||||||||
Liabilities in Excess of Cash, Receivables and Other Assets — 0.0% | (31,498 | ) | |||||||||
Net Assets — 100% | $ | 130,031,333 |
* Non-income producing security.
† The Guardian S&P 500 Index Fund financial statements and financial highlights are included herein.
(1) Majority-owned subsidiary.
(2) The U.S. Treasury Bill is segregated as collateral to cover margin requirements on open futures contracts.
(3) The repurchase agreement is fully collateralized by $2,220,000 in U.S. Government Agency, 5.50%, due 5/29/2009, with a value of $2,220,000.
Contracts | Description | Expiration | Unrealized Appreciation | ||||||||||||
Sold Futures Contracts | |||||||||||||||
66 | S & P 500 Index | 9/2006 | $ | 323,069 |
See notes to financial statements.
38
n The Guardian S&P 500 Index Fund
Schedule of Investments
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
Common Stocks — 98.9% | |||||||||||
Aerospace and Defense — 2.4% | |||||||||||
12,088 | Boeing Co. | $ | 990,128 | ||||||||
6,250 | General Dynamics Corp. | 409,125 | |||||||||
2,343 | Goodrich Corp. | 94,400 | |||||||||
13,224 | Honeywell Int'l., Inc. | 532,927 | |||||||||
1,600 | L-3 Comm. Hldgs., Inc. | 120,672 | |||||||||
5,204 | Lockheed Martin Corp. | 373,335 | |||||||||
5,740 | Northrop Grumman Corp. | 367,704 | |||||||||
6,629 | Raytheon Co. | 295,455 | |||||||||
2,645 | Rockwell Collins, Inc. | 147,776 | |||||||||
15,510 | United Technologies Corp. | 983,644 | |||||||||
4,315,166 | |||||||||||
Air Freight and Logistics — 1.0% | |||||||||||
4,550 | FedEx Corp. | 531,713 | |||||||||
15,915 | United Parcel Svc., Inc. – Class B | 1,310,282 | |||||||||
1,841,995 | |||||||||||
Airlines — 0.1% | |||||||||||
12,232 | Southwest Airlines Co. | 200,238 | |||||||||
Auto Components — 0.2% | |||||||||||
945 | Cooper Tire & Rubber Co. | 10,527 | |||||||||
1,665 | Goodyear Tire & Rubber Co.* | 18,482 | |||||||||
2,858 | Johnson Controls, Inc. | 234,985 | |||||||||
263,994 | |||||||||||
Automobiles — 0.4% | |||||||||||
28,459 | Ford Motor Co. | 197,221 | |||||||||
8,879 | General Motors Corp. | 264,505 | |||||||||
4,838 | Harley-Davidson, Inc. | 265,558 | |||||||||
727,284 | |||||||||||
Beverages — 2.1% | |||||||||||
11,891 | Anheuser-Busch Cos., Inc. | 542,111 | |||||||||
690 | Brown-Forman Corp. – Class B | 49,300 | |||||||||
32,032 | Coca-Cola Co. | 1,378,017 | |||||||||
4,764 | Coca-Cola Enterprises, Inc. | 97,043 | |||||||||
3,100 | Constellation Brands, Inc. – Class A* | 77,500 | |||||||||
525 | Molson Coors Brewing Co. – Class B | 35,637 | |||||||||
2,459 | Pepsi Bottling Group, Inc. | 79,057 | |||||||||
25,065 | PepsiCo., Inc. | 1,504,902 | |||||||||
3,763,567 | |||||||||||
Biotechnology — 1.3% | |||||||||||
18,058 | Amgen, Inc.* | 1,177,924 | |||||||||
5,322 | Biogen Idec, Inc.* | 246,568 | |||||||||
4,379 | Genzyme Corp.* | 267,338 | |||||||||
7,600 | Gilead Sciences, Inc.* | 449,616 | |||||||||
3,661 | MedImmune, Inc.* | 99,213 | |||||||||
2,240,659 | |||||||||||
Building Products — 0.2% | |||||||||||
3,186 | American Standard Cos., Inc. | 137,858 | |||||||||
5,783 | Masco Corp. | 171,408 | |||||||||
309,266 | |||||||||||
Capital Markets — 3.4% | |||||||||||
3,930 | Ameriprise Financial, Inc. | 175,553 | |||||||||
11,877 | Bank of New York, Inc. | 382,439 | |||||||||
1,889 | Bear Stearns Cos., Inc. | 264,611 | |||||||||
13,989 | Charles Schwab Corp. | 223,544 | |||||||||
5,500 | E*TRADE Financial Corp.* | 125,510 | |||||||||
1,600 | Federated Investors, Inc. – Class B | 50,400 | |||||||||
2,401 | Franklin Resources, Inc. | 208,431 |
Shares | Value | ||||||||||
6,666 | Goldman Sachs Group, Inc. | $ | 1,002,766 | ||||||||
3,184 | Janus Capital Group, Inc. | 56,994 | |||||||||
1,900 | Legg Mason, Inc. | 189,088 | |||||||||
8,398 | Lehman Brothers Hldgs., Inc. | 547,130 | |||||||||
6,309 | Mellon Financial Corp. | 217,219 | |||||||||
14,354 | Merrill Lynch & Co., Inc. | 998,464 | |||||||||
16,508 | Morgan Stanley | 1,043,471 | |||||||||
3,195 | Northern Trust Corp. | 176,684 | |||||||||
5,114 | State Street Corp. | 297,072 | |||||||||
3,456 | T. Rowe Price Group, Inc. | 130,671 | |||||||||
6,090,047 | |||||||||||
Chemicals — 1.5% | |||||||||||
3,281 | Air Products & Chemicals, Inc. | 209,722 | |||||||||
966 | Ashland, Inc. | 64,432 | |||||||||
13,965 | Dow Chemical Co. | 545,054 | |||||||||
13,809 | E.I. Du Pont de Nemours & Co. | 574,454 | |||||||||
1,083 | Eastman Chemical Co. | 58,482 | |||||||||
3,253 | Ecolab, Inc. | 132,007 | |||||||||
1,497 | Hercules, Inc.* | 22,844 | |||||||||
1,377 | Int'l. Flavors & Fragrances, Inc. | 48,525 | |||||||||
4,436 | Monsanto Co. | 373,467 | |||||||||
2,774 | PPG Inds., Inc. | 183,084 | |||||||||
5,132 | Praxair, Inc. | 277,128 | |||||||||
1,534 | Rohm & Haas Co. | 76,884 | |||||||||
1,093 | Sigma-Aldrich | 79,396 | |||||||||
2,645,479 | |||||||||||
Commercial Banks — 4.2% | |||||||||||
5,373 | AmSouth Bancorporation | 142,116 | |||||||||
8,563 | BB&T Corp. | 356,135 | |||||||||
2,548 | Comerica, Inc. | 132,471 | |||||||||
2,700 | Commerce Bancorp, Inc. | 96,309 | |||||||||
1,900 | Compass Bancshares, Inc. | 105,640 | |||||||||
7,546 | Fifth Third Bancorp | 278,825 | |||||||||
1,845 | First Horizon Nat'l. Corp. | 74,169 | |||||||||
3,600 | Huntington Bancshares, Inc. | 84,888 | |||||||||
6,165 | KeyCorp | 219,967 | |||||||||
1,300 | M & T Bank Corp. | 153,296 | |||||||||
3,714 | Marshall & Ilsley Corp. | 169,878 | |||||||||
8,365 | National City Corp. | 302,729 | |||||||||
7,607 | North Fork Bancorporation, Inc. | 229,503 | |||||||||
4,177 | PNC Financial Svcs. Group | 293,100 | |||||||||
7,283 | Regions Financial Corp. | 241,213 | |||||||||
5,676 | SunTrust Banks, Inc. | 432,852 | |||||||||
4,926 | Synovus Financial Corp. | 131,918 | |||||||||
28,304 | U.S. Bancorp | 874,028 | |||||||||
24,714 | Wachovia Corp. | 1,336,533 | |||||||||
25,987 | Wells Fargo & Co. | 1,743,208 | |||||||||
1,438 | Zions Bancorporation | 112,078 | |||||||||
7,510,856 | |||||||||||
Commercial Services and Supplies — 0.7% | |||||||||||
4,995 | Allied Waste Inds., Inc.* | 56,743 | |||||||||
1,581 | Avery Dennison Corp. | 91,793 | |||||||||
15,262 | Cendant Corp. | 248,618 | |||||||||
2,425 | Cintas Corp. | 96,418 | |||||||||
2,052 | Equifax, Inc. | 70,466 | |||||||||
1,707 | Monster Worldwide, Inc.* | 72,820 | |||||||||
3,634 | Pitney Bowes, Inc. | 150,084 | |||||||||
2,723 | R.R. Donnelley & Sons Co. | 87,000 | |||||||||
2,547 | Robert Half Int'l., Inc. | 106,974 | |||||||||
8,974 | Waste Management, Inc. | 321,987 | |||||||||
1,302,903 |
See notes to financial statements.
39
n The Guardian S&P 500 Index Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
Communications Equipment — 2.7% | |||||||||||
1,590 | ADC Telecomm., Inc.* | $ | 26,807 | ||||||||
2,400 | Andrew Corp.* | 21,264 | |||||||||
6,102 | Avaya, Inc.* | 69,685 | |||||||||
10,503 | CIENA Corp.* | 50,519 | |||||||||
94,742 | Cisco Systems, Inc.* | 1,850,311 | |||||||||
2,380 | Comverse Technology, Inc.* | 47,053 | |||||||||
23,897 | Corning, Inc.* | 578,069 | |||||||||
23,634 | JDS Uniphase Corp.* | 59,794 | |||||||||
8,600 | Juniper Networks, Inc.* | 137,514 | |||||||||
67,556 | Lucent Technologies, Inc.* | 163,486 | |||||||||
36,825 | Motorola, Inc. | 742,024 | |||||||||
25,304 | QUALCOMM, Inc. | 1,013,931 | |||||||||
5,897 | Tellabs, Inc.* | 78,489 | |||||||||
4,838,946 | |||||||||||
Computers and Peripherals — 3.4% | |||||||||||
12,669 | Apple Computer, Inc.* | 723,653 | |||||||||
35,726 | Dell, Inc.* | 872,072 | |||||||||
36,868 | EMC Corp.* | 404,442 | |||||||||
4,621 | Gateway, Inc.* | 8,780 | |||||||||
43,898 | Hewlett Packard Co. | 1,390,689 | |||||||||
23,981 | Int'l. Business Machines | 1,842,220 | |||||||||
1,823 | Lexmark Int'l. Group, Inc. – Class A* | 101,778 | |||||||||
2,758 | NCR Corp.* | 101,053 | |||||||||
5,702 | Network Appliance, Inc.* | 201,281 | |||||||||
2,698 | QLogic Corp.* | 46,513 | |||||||||
2,600 | SanDisk Corp.* | 132,548 | |||||||||
54,932 | Sun Microsystems, Inc.* | 227,968 | |||||||||
6,052,997 | |||||||||||
Construction and Engineering — 0.1% | |||||||||||
1,550 | Fluor Corp. | 144,042 | |||||||||
Construction Materials — 0.1% | |||||||||||
1,439 | Vulcan Materials Co. | 112,242 | |||||||||
Consumer Finance — 1.0% | |||||||||||
19,651 | American Express Co. | 1,045,826 | |||||||||
3,450 | Capital One Financial Corp. | 294,803 | |||||||||
7,101 | SLM Corp. | 375,785 | |||||||||
1,716,414 | |||||||||||
Containers and Packaging — 0.2% | |||||||||||
1,626 | Ball Corp. | 60,227 | |||||||||
1,504 | Bemis Co., Inc. | 46,052 | |||||||||
2,261 | Pactiv Corp.* | 55,960 | |||||||||
1,781 | Sealed Air Corp. | 92,754 | |||||||||
1,394 | Temple-Inland, Inc. | 59,761 | |||||||||
314,754 | |||||||||||
Distributors — 0.1% | |||||||||||
2,486 | Genuine Parts Co. | 103,567 | |||||||||
Diversified Consumer Services — 0.1% | |||||||||||
1,845 | Apollo Group, Inc. – Class A* | 95,331 | |||||||||
5,208 | H & R Block, Inc. | 124,263 | |||||||||
219,594 | |||||||||||
Diversified Financial Services — 5.4% | |||||||||||
70,201 | Bank of America Corp. | 3,376,668 | |||||||||
3,200 | CIT Group, Inc. | 167,328 | |||||||||
73,862 | Citigroup, Inc. | 3,563,103 | |||||||||
54,053 | J.P. Morgan Chase & Co. | 2,270,226 | |||||||||
3,318 | Moody's Corp. | 180,698 | |||||||||
9,558,023 |
Shares | Value | ||||||||||
Diversified Telecommunication Services — 2.6% | |||||||||||
58,267 | AT & T, Inc. | $ | 1,625,067 | ||||||||
28,012 | BellSouth Corp. | 1,014,034 | |||||||||
1,992 | CenturyTel, Inc. | 74,003 | |||||||||
6,319 | Citizens Comm. Co. | 82,463 | |||||||||
2,290 | Embarq Corp.* | 93,867 | |||||||||
23,023 | Qwest Comm. Int'l., Inc.* | 186,256 | |||||||||
44,585 | Verizon Comm. | 1,493,152 | |||||||||
4,568,842 | |||||||||||
Electric Utilities — 1.5% | |||||||||||
2,653 | Allegheny Energy, Inc.* | 98,347 | |||||||||
6,284 | American Electric Power, Inc. | 215,227 | |||||||||
4,648 | Edison Int'l. | 181,272 | |||||||||
3,618 | Entergy Corp. | 255,974 | |||||||||
9,704 | Exelon Corp. | 551,479 | |||||||||
5,049 | FirstEnergy Corp. | 273,706 | |||||||||
5,814 | FPL Group, Inc. | 240,583 | |||||||||
1,212 | Pinnacle West Capital Corp. | 48,371 | |||||||||
5,384 | PPL Corp. | 173,903 | |||||||||
4,069 | Progress Energy, Inc. | 174,438 | |||||||||
12,246 | Southern Co. | 392,484 | |||||||||
2,605,784 | |||||||||||
Electrical Equipment — 0.5% | |||||||||||
2,786 | American Power Conversion Corp. | 54,299 | |||||||||
1,359 | Cooper Inds. Ltd. – Class A | 126,278 | |||||||||
6,564 | Emerson Electric Co. | 550,129 | |||||||||
2,645 | Rockwell Automation, Inc. | 190,467 | |||||||||
921,173 | |||||||||||
Electronic Equipment and Instruments — 0.3% | |||||||||||
7,382 | Agilent Technologies, Inc.* | 232,976 | |||||||||
2,726 | Jabil Circuit, Inc. | 69,786 | |||||||||
2,802 | Molex, Inc. | 94,063 | |||||||||
7,816 | Sanmina-SCI Corp.* | 35,954 | |||||||||
12,349 | Solectron Corp.* | 42,233 | |||||||||
3,132 | Symbol Technologies, Inc. | 33,794 | |||||||||
1,336 | Tektronix, Inc. | 39,305 | |||||||||
548,111 | |||||||||||
Energy Equipment and Services — 2.0% | |||||||||||
5,434 | B.J. Svcs. Co. | 202,471 | |||||||||
5,564 | Baker Hughes, Inc. | 455,414 | |||||||||
8,090 | Halliburton Co. | 600,359 | |||||||||
4,784 | Nabors Inds., Inc.* | 161,651 | |||||||||
2,600 | National-Oilwell Varco, Inc.* | 164,632 | |||||||||
2,008 | Noble Corp. | 149,435 | |||||||||
1,317 | Rowan Cos., Inc. | 46,872 | |||||||||
17,806 | Schlumberger Ltd. | 1,159,349 | |||||||||
4,872 | Transocean, Inc.* | 391,319 | |||||||||
5,500 | Weatherford Int'l. Ltd.* | 272,910 | |||||||||
3,604,412 | |||||||||||
Food and Staples Retailing — 2.4% | |||||||||||
7,059 | Costco Wholesale Corp. | 403,281 | |||||||||
12,602 | CVS Corp. | 386,881 | |||||||||
11,800 | Kroger Co. | 257,948 | |||||||||
7,230 | Safeway, Inc. | 187,980 | |||||||||
2,959 | Supervalu, Inc. | 90,841 | |||||||||
9,731 | Sysco Corp. | 297,379 | |||||||||
37,952 | Wal-Mart Stores, Inc. | 1,828,148 | |||||||||
15,872 | Walgreen Co. | 711,701 | |||||||||
2,200 | Whole Foods Market, Inc. | 142,208 | |||||||||
4,306,367 |
See notes to financial statements.
40
n The Guardian S&P 500 Index Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
Food Products — 1.1% | |||||||||||
9,568 | Archer-Daniels-Midland Co. | $ | 394,967 | ||||||||
2,069 | Campbell Soup Co. | 76,781 | |||||||||
8,628 | ConAgra Foods, Inc. | 190,765 | |||||||||
1,200 | Dean Foods Co.* | 44,628 | |||||||||
5,846 | General Mills, Inc. | 302,004 | |||||||||
5,823 | H.J. Heinz Co. | 240,024 | |||||||||
2,920 | Hershey Co. | 160,805 | |||||||||
2,444 | Kellogg Co. | 118,363 | |||||||||
1,968 | McCormick & Co., Inc. | 66,027 | |||||||||
12,269 | Sara Lee Corp. | 196,549 | |||||||||
3,000 | Tyson Foods, Inc. – Class A | 44,580 | |||||||||
2,912 | W.M. Wrigley Jr. Co. | 132,088 | |||||||||
1,967,581 | |||||||||||
Gas Utilities — 0.0% | |||||||||||
674 | NICOR, Inc. | 27,971 | |||||||||
527 | Peoples Energy Corp. | 18,925 | |||||||||
46,896 | |||||||||||
Health Care Equipment and Supplies — 1.5% | |||||||||||
755 | Bausch & Lomb, Inc. | 37,025 | |||||||||
9,370 | Baxter Int'l., Inc. | 344,441 | |||||||||
3,689 | Becton Dickinson & Co., Inc. | 225,509 | |||||||||
3,846 | Biomet, Inc. | 120,341 | |||||||||
18,618 | Boston Scientific Corp.* | 313,527 | |||||||||
1,442 | C.R. Bard, Inc. | 105,641 | |||||||||
2,380 | Hospira, Inc.* | 102,197 | |||||||||
18,880 | Medtronic, Inc. | 885,850 | |||||||||
5,634 | St. Jude Medical, Inc.* | 182,654 | |||||||||
4,894 | Stryker Corp. | 206,086 | |||||||||
3,813 | Zimmer Hldgs., Inc.* | 216,274 | |||||||||
2,739,545 | |||||||||||
Health Care Providers and Services — 2.7% | |||||||||||
9,344 | Aetna, Inc. | 373,106 | |||||||||
3,708 | AmerisourceBergen Corp. | 155,439 | |||||||||
6,258 | Cardinal Health, Inc. | 402,577 | |||||||||
6,800 | Caremark Rx, Inc. | 339,116 | |||||||||
1,821 | Cigna Corp. | 179,387 | |||||||||
3,000 | Coventry Health Care, Inc.* | 164,820 | |||||||||
2,330 | Express Scripts, Inc.* | 167,154 | |||||||||
6,262 | HCA, Inc. | 270,205 | |||||||||
3,671 | Health Management Assoc., Inc. – Class A | 72,356 | |||||||||
2,389 | Humana, Inc.* | 128,289 | |||||||||
2,100 | Laboratory Corp. of America* | 130,683 | |||||||||
1,456 | Manor Care, Inc. | 68,316 | |||||||||
4,585 | McKesson Corp. | 216,779 | |||||||||
4,611 | Medco Health Solutions, Inc.* | 264,118 | |||||||||
1,800 | Patterson Cos., Inc.* | 62,874 | |||||||||
2,476 | Quest Diagnostics, Inc. | 148,362 | |||||||||
6,941 | Tenet Healthcare Corp.* | 48,448 | |||||||||
20,640 | UnitedHealth Group, Inc. | 924,259 | |||||||||
10,412 | WellPoint, Inc.* | 757,681 | |||||||||
4,873,969 | |||||||||||
Health Care Technology — 0.1% | |||||||||||
3,317 | IMS Health, Inc. | 89,061 | |||||||||
Hotels, Restaurants and Leisure — 1.5% | |||||||||||
6,814 | Carnival Corp. | 284,416 | |||||||||
2,575 | Darden Restaurants, Inc. | 101,455 | |||||||||
2,649 | Harrah's Entertainment, Inc. | 188,556 | |||||||||
5,226 | Hilton Hotels Corp. | 147,791 | |||||||||
5,356 | Int'l. Game Technology | 203,207 | |||||||||
4,086 | Marriott Int'l., Inc. – Class A | 155,758 |
Shares | Value | ||||||||||
20,021 | McDonald's Corp. | $ | 672,706 | ||||||||
12,296 | Starbucks Corp.* | 464,297 | |||||||||
3,141 | Starwood Hotels & Resorts Worldwide, Inc. | 189,528 | |||||||||
1,623 | Wendy's Int'l., Inc. | 94,605 | |||||||||
4,234 | Yum! Brands, Inc. | 212,843 | |||||||||
2,715,162 | |||||||||||
Household Durables — 0.6% | |||||||||||
1,127 | Black & Decker Corp. | 95,187 | |||||||||
2,084 | Centex Corp. | 104,825 | |||||||||
4,100 | D.R. Horton, Inc. | 97,662 | |||||||||
2,219 | Fortune Brands, Inc. | 157,571 | |||||||||
900 | Harman Int'l. Inds., Inc. | 76,833 | |||||||||
1,236 | KB Home | 56,671 | |||||||||
2,782 | Leggett & Platt, Inc. | 69,494 | |||||||||
2,100 | Lennar Corp. – Class A | 93,177 | |||||||||
3,827 | Newell Rubbermaid, Inc. | 98,851 | |||||||||
2,692 | Pulte Homes, Inc. | 77,503 | |||||||||
811 | Snap-On, Inc. | 32,781 | |||||||||
1,228 | Stanley Works | 57,986 | |||||||||
1,060 | Whirlpool Corp. | 87,609 | |||||||||
1,106,150 | |||||||||||
Household Products — 2.1% | |||||||||||
1,690 | Clorox Co. | 103,039 | |||||||||
8,248 | Colgate-Palmolive Co. | 494,055 | |||||||||
6,804 | Kimberly-Clark Corp. | 419,807 | |||||||||
49,801 | Procter & Gamble Co. | 2,768,936 | |||||||||
3,785,837 | |||||||||||
Independent Power Producers and Energy Traders — 0.4% | |||||||||||
10,232 | AES Corp.* | 188,781 | |||||||||
2,535 | Constellation Energy Group, Inc. | 138,208 | |||||||||
4,647 | Dynegy, Inc. – Class A* | 25,419 | |||||||||
6,690 | TXU Corp. | 399,995 | |||||||||
752,403 | |||||||||||
Industrial Conglomerates — 4.0% | |||||||||||
11,794 | 3M Co. | 952,602 | |||||||||
156,666 | General Electric Co. | 5,163,711 | |||||||||
2,056 | Textron, Inc. | 189,522 | |||||||||
31,410 | Tyco Int'l. Ltd. | 863,775 | |||||||||
7,169,610 | |||||||||||
Information Technology Services — 1.1% | |||||||||||
2,100 | Affiliated Computer Svcs., Inc. – Class A* | 108,381 | �� | ||||||||
9,179 | Automatic Data Processing, Inc. | 416,268 | |||||||||
2,951 | Computer Sciences Corp.* | 142,946 | |||||||||
2,482 | Convergys Corp.* | 48,399 | |||||||||
7,704 | Electronic Data Systems Corp. | 185,358 | |||||||||
12,005 | First Data Corp. | 540,705 | |||||||||
2,689 | Fiserv, Inc.* | 121,973 | |||||||||
6,010 | Paychex, Inc. | 234,270 | |||||||||
1,910 | Sabre Hldgs. Corp. – Class A | 42,020 | |||||||||
4,516 | Unisys Corp.* | 28,361 | |||||||||
1,868,681 | |||||||||||
Insurance — 4.6% | |||||||||||
4,286 | ACE Ltd. | 216,829 | |||||||||
7,659 | AFLAC, Inc. | 354,995 | |||||||||
9,558 | Allstate Corp. | 523,109 | |||||||||
1,504 | Ambac Financial Group, Inc. | 121,974 | |||||||||
39,706 | American Int'l. Group, Inc. | 2,344,639 | |||||||||
4,649 | Aon Corp. | 161,878 | |||||||||
5,778 | Chubb Corp. | 288,322 | |||||||||
3,377 | Cincinnati Financial Corp. | 158,753 |
See notes to financial statements.
41
n The Guardian S&P 500 Index Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
6,100 | Genworth Financial, Inc. – Class A | $ | 212,524 | ||||||||
4,461 | Hartford Financial Svcs. Group, Inc. | 377,401 | |||||||||
4,765 | Lincoln Nat'l. Corp. | 268,937 | |||||||||
6,753 | Loews Corp. | 239,394 | |||||||||
7,535 | Marsh & McLennan Cos., Inc. | 202,616 | |||||||||
2,115 | MBIA, Inc. | 123,833 | |||||||||
11,597 | MetLife, Inc. | 593,882 | |||||||||
4,016 | Principal Financial Group, Inc. | 223,491 | |||||||||
11,744 | Progressive Corp. | 301,938 | |||||||||
7,527 | Prudential Financial, Inc. | 584,848 | |||||||||
1,823 | SAFECO Corp. | 102,726 | |||||||||
10,367 | St. Paul Travelers Cos., Inc. | 462,161 | |||||||||
931 | Torchmark Corp. | 56,530 | |||||||||
4,975 | UnumProvident Corp. | 90,197 | |||||||||
2,213 | XL Capital Ltd. – Class A | 135,657 | |||||||||
8,146,634 | |||||||||||
Internet and Catalog Retail — 0.1% | |||||||||||
4,900 | Amazon.com, Inc* | 189,532 | |||||||||
Internet Software and Services — 1.4% | |||||||||||
17,312 | eBay, Inc.* | 507,068 | |||||||||
3,000 | Google, Inc. – Class A* | 1,257,990 | |||||||||
3,300 | VeriSign, Inc.* | 76,461 | |||||||||
20,701 | Yahoo! Inc.* | 683,133 | |||||||||
2,524,652 | |||||||||||
Leisure Equipment and Products — 0.2% | |||||||||||
1,223 | Brunswick Corp. | 40,665 | |||||||||
4,324 | Eastman Kodak Co. | 102,825 | |||||||||
2,426 | Hasbro, Inc. | 43,935 | |||||||||
6,117 | Mattel, Inc. | 100,991 | |||||||||
288,416 | |||||||||||
Life Sciences Tools and Services — 0.3% | |||||||||||
3,019 | Applera Corp.-Applied Biosystems Group | 97,665 | |||||||||
1,700 | Fisher Scientific Int'l., Inc.* | 124,185 | |||||||||
653 | Millipore Corp.* | 41,132 | |||||||||
2,010 | PerkinElmer, Inc. | 42,009 | |||||||||
2,568 | Thermo Electron Corp.* | 93,064 | |||||||||
2,045 | Waters Corp.* | 90,798 | |||||||||
488,853 | |||||||||||
Machinery — 1.6% | |||||||||||
10,476 | Caterpillar, Inc. | 780,252 | |||||||||
571 | Cummins, Inc. | 69,805 | |||||||||
3,776 | Danaher Corp. | 242,872 | |||||||||
3,730 | Deere & Co. | 311,418 | |||||||||
2,911 | Dover Corp. | 143,891 | |||||||||
2,354 | Eaton Corp. | 177,492 | |||||||||
5,742 | Illinois Tool Works, Inc. | 272,745 | |||||||||
5,306 | Ingersoll-Rand Co. Ltd. – Class A | 226,991 | |||||||||
2,512 | ITT Inds., Inc. | 124,344 | |||||||||
1,366 | Navistar Int'l. Corp.* | 33,617 | |||||||||
2,467 | PACCAR, Inc. | 203,231 | |||||||||
1,735 | Pall Corp. | 48,580 | |||||||||
1,682 | Parker-Hannifin Corp. | 130,523 | |||||||||
2,765,761 | |||||||||||
Media — 3.4% | |||||||||||
11,795 | CBS Corp. – Class B | 319,055 | |||||||||
9,260 | Clear Channel Comm., Inc. | 286,597 | |||||||||
32,394 | Comcast Corp. – Class A* | 1,060,580 | |||||||||
1,237 | Dow Jones & Co., Inc. | 43,307 | |||||||||
4,065 | Gannett Co., Inc. | 227,355 | |||||||||
5,651 | Interpublic Group Cos., Inc.* | 47,186 | |||||||||
684 | McClatchy Co. – Class A | 27,453 |
Shares | Value | ||||||||||
5,632 | McGraw-Hill Cos., Inc. | $ | 282,895 | ||||||||
690 | Meredith Corp. | 34,183 | |||||||||
2,319 | New York Times Co. – Class A | 56,908 | |||||||||
31,800 | News Corp. – Class A | 609,924 | |||||||||
2,399 | Omnicom Group, Inc. | 213,727 | |||||||||
1,400 | E.W. Scripps Co. – Class A | 60,396 | |||||||||
68,118 | Time Warner, Inc. | 1,178,441 | |||||||||
3,202 | Tribune Co. | 103,841 | |||||||||
3,287 | Univision Comm., Inc. – Class A* | 110,115 | |||||||||
10,995 | Viacom, Inc. – Class B* | 394,061 | |||||||||
31,096 | Walt Disney Co. | 932,880 | |||||||||
5,988,904 | |||||||||||
Metals and Mining — 0.9% | |||||||||||
13,096 | Alcoa, Inc. | 423,787 | |||||||||
1,448 | Allegheny Technologies, Inc. | 100,259 | |||||||||
2,626 | Freeport-McMoran Copper & Gold, Inc. – Class B | 145,507 | |||||||||
7,119 | Newmont Mining Corp. | 376,809 | |||||||||
4,870 | Nucor Corp. | 264,197 | |||||||||
2,850 | Phelps Dodge Corp. | 234,156 | |||||||||
1,892 | United States Steel Corp. | 132,667 | |||||||||
1,677,382 | |||||||||||
Multiline Retail — 1.2% | |||||||||||
1,561 | Big Lots, Inc.* | 26,662 | |||||||||
1,201 | Dillards, Inc. – Class A | 38,252 | |||||||||
4,737 | Dollar General Corp. | 66,223 | |||||||||
2,900 | Family Dollar Stores, Inc. | 70,847 | |||||||||
8,336 | Federated Department Stores, Inc. | 305,098 | |||||||||
3,029 | J.C. Penney Co., Inc. | 204,488 | |||||||||
5,280 | Kohl's Corp.* | 312,153 | |||||||||
2,774 | Nordstrom, Inc. | 101,251 | |||||||||
1,563 | Sears Hldgs. Corp.* | 242,015 | |||||||||
13,845 | Target Corp. | 676,605 | |||||||||
2,043,594 | |||||||||||
Multi–Utilities — 1.3% | |||||||||||
3,771 | Ameren Corp. | 190,436 | |||||||||
4,248 | CenterPoint Energy, Inc. | 53,100 | |||||||||
2,596 | CMS Energy Corp.* | 33,592 | |||||||||
3,075 | Consolidated Edison, Inc. | 136,653 | |||||||||
4,770 | Dominion Resources, Inc. | 356,748 | |||||||||
2,578 | DTE Energy Co. | 105,028 | |||||||||
17,880 | Duke Energy Corp. | 525,136 | |||||||||
2,816 | KeySpan Corp. | 113,766 | |||||||||
4,276 | NiSource, Inc. | 93,388 | |||||||||
5,044 | PG&E Corp. | 198,128 | |||||||||
3,650 | Public Svc. Enterprise Group, Inc. | 241,338 | |||||||||
3,727 | Sempra Energy | 169,504 | |||||||||
2,624 | TECO Energy, Inc. | 39,203 | |||||||||
6,601 | Xcel Energy, Inc. | 126,607 | |||||||||
2,382,627 | |||||||||||
Office Electronics — 0.1% | |||||||||||
11,648 | Xerox Corp.* | 162,024 | |||||||||
Oil, Gas and Consumable Fuels — 8.0% | |||||||||||
7,352 | Anadarko Petroleum Corp. | 350,617 | |||||||||
4,912 | Apache Corp. | 335,244 | |||||||||
5,100 | Chesapeake Energy Corp. | 154,275 | |||||||||
34,134 | Chevron Corp. | 2,118,356 | |||||||||
25,627 | ConocoPhillips | 1,679,337 | |||||||||
7,142 | Devon Energy Corp. | 431,448 | |||||||||
10,252 | El Paso Corp. | 153,780 | |||||||||
3,148 | EOG Resources, Inc. | 218,282 |
See notes to financial statements.
42
n The Guardian S&P 500 Index Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
92,780 | Exxon Mobil Corp. | $ | 5,692,053 | ||||||||
3,816 | Hess Corp. | 201,676 | |||||||||
3,700 | Kerr-McGee Corp. | 256,595 | |||||||||
1,448 | Kinder Morgan, Inc. | 144,641 | |||||||||
5,684 | Marathon Oil Corp. | 473,477 | |||||||||
2,600 | Murphy Oil Corp. | 145,236 | |||||||||
6,371 | Occidental Petroleum Corp. | 653,346 | |||||||||
2,338 | Sunoco, Inc. | 162,000 | |||||||||
8,800 | Valero Energy Corp. | 585,376 | |||||||||
9,907 | Williams Cos., Inc. | 231,428 | |||||||||
5,466 | XTO Energy, Inc. | 241,980 | |||||||||
14,229,147 | |||||||||||
Paper and Forest Products — 0.3% | |||||||||||
7,547 | Int'l. Paper Co. | 243,768 | |||||||||
1,413 | Louisiana-Pacific Corp. | 30,944 | |||||||||
2,831 | MeadWestvaco Corp. | 79,070 | |||||||||
4,011 | Weyerhaeuser Co. | 249,685 | |||||||||
603,467 | |||||||||||
Personal Products — 0.2% | |||||||||||
1,201 | Alberto-Culver Co. | 58,513 | |||||||||
6,846 | Avon Products, Inc. | 212,226 | |||||||||
1,900 | Estee Lauder Cos., Inc. – Class A | 73,473 | |||||||||
344,212 | |||||||||||
Pharmaceuticals — 6.4% | |||||||||||
22,516 | Abbott Laboratories | 981,923 | |||||||||
1,885 | Allergan, Inc. | 202,185 | |||||||||
1,600 | Barr Pharmaceuticals, Inc.* | 76,304 | |||||||||
29,523 | Bristol-Myers Squibb Corp. | 763,465 | |||||||||
17,227 | Eli Lilly & Co. | 952,136 | |||||||||
5,593 | Forest Laboratories, Inc.* | 216,393 | |||||||||
45,670 | Johnson & Johnson | 2,736,546 | |||||||||
3,608 | King Pharmaceuticals, Inc.* | 61,336 | |||||||||
32,262 | Merck & Co., Inc. | 1,175,305 | |||||||||
4,100 | Mylan Laboratories, Inc. | 82,000 | |||||||||
113,192 | Pfizer, Inc. | 2,656,616 | |||||||||
22,681 | Schering-Plough Corp. | 431,620 | |||||||||
840 | Watson Pharmaceuticals, Inc.* | 19,555 | |||||||||
20,740 | Wyeth | 921,063 | |||||||||
11,276,447 | |||||||||||
Real Estate Investment Trusts — 0.9% | |||||||||||
1,513 | Apartment Investment & Management Co. – Class A | 65,740 | |||||||||
2,900 | Archstone-Smith Trust | 147,523 | |||||||||
1,200 | Boston Properties, Inc. | 108,480 | |||||||||
6,439 | Equity Office Pptys. Trust | 235,088 | |||||||||
4,460 | Equity Residential | 199,496 | |||||||||
3,100 | Kimco Realty Corp. | 113,119 | |||||||||
2,659 | Plum Creek Timber Co., Inc. | 94,395 | |||||||||
2,678 | ProLogis | 139,577 | |||||||||
1,300 | Public Storage, Inc. | 98,670 | |||||||||
2,560 | Simon Ppty. Group, Inc. | 212,326 | |||||||||
2,100 | Vornado Realty Trust | 204,855 | |||||||||
1,619,269 | |||||||||||
Road and Rail — 0.8% | |||||||||||
5,663 | Burlington Northern Santa Fe | 448,793 | |||||||||
3,037 | CSX Corp. | 213,926 | |||||||||
6,560 | Norfolk Southern Corp. | 349,123 | |||||||||
810 | Ryder System, Inc. | 47,328 | |||||||||
4,000 | Union Pacific Corp. | 371,840 | |||||||||
1,431,010 |
Shares | Value | ||||||||||
Semiconductors and Semiconductor Equipment — 2.7% | |||||||||||
5,369 | Advanced Micro Devices, Inc.* | $ | 131,111 | ||||||||
5,686 | Altera Corp.* | 99,789 | |||||||||
5,668 | Analog Devices, Inc. | 182,170 | |||||||||
24,299 | Applied Materials, Inc. | 395,588 | |||||||||
6,292 | Broadcom Corp. – Class A* | 189,075 | |||||||||
5,113 | Freescale Semiconductor, Inc. – Class B* | 150,322 | |||||||||
90,314 | Intel Corp. | 1,711,450 | |||||||||
2,341 | KLA-Tencor Corp. | 97,315 | |||||||||
4,550 | Linear Technology Corp. | 152,379 | |||||||||
5,783 | LSI Logic Corp.* | 51,758 | |||||||||
4,899 | Maxim Integrated Products, Inc. | 157,307 | |||||||||
8,530 | Micron Technology, Inc.* | 128,462 | |||||||||
6,136 | National Semiconductor Corp. | 146,344 | |||||||||
2,577 | Novellus Systems, Inc.* | 63,652 | |||||||||
5,520 | NVIDIA Corp.* | 117,521 | |||||||||
3,235 | PMC-Sierra, Inc.* | 30,409 | |||||||||
2,493 | Teradyne, Inc.* | 34,727 | |||||||||
24,580 | Texas Instruments, Inc. | 744,528 | |||||||||
5,339 | Xilinx, Inc. | 120,928 | |||||||||
4,704,835 | |||||||||||
Software — 3.0% | |||||||||||
7,500 | Adobe Systems, Inc.* | 227,700 | |||||||||
3,550 | Autodesk, Inc.* | 122,333 | |||||||||
3,499 | BMC Software, Inc.* | 83,626 | |||||||||
6,048 | CA, Inc. | 124,286 | |||||||||
2,659 | Citrix Systems, Inc.* | 106,732 | |||||||||
5,272 | Compuware Corp.* | 35,322 | |||||||||
4,446 | Electronic Arts, Inc.* | 191,356 | |||||||||
3,242 | Intuit, Inc.* | 195,784 | |||||||||
134,276 | Microsoft Corp. | 3,128,631 | |||||||||
6,727 | Novell, Inc.* | 44,600 | |||||||||
58,999 | Oracle Corp.* | 854,896 | |||||||||
1,521 | Parametric Technology Corp.* | 19,332 | |||||||||
17,331 | Symantec Corp.* | 269,324 | |||||||||
5,403,922 | |||||||||||
Specialty Retail — 2.2% | |||||||||||
4,489 | AutoNation, Inc.* | 96,244 | |||||||||
833 | AutoZone, Inc.* | 73,471 | |||||||||
4,634 | Bed, Bath & Beyond, Inc.* | 153,710 | |||||||||
6,234 | Best Buy Co., Inc. | 341,873 | |||||||||
2,929 | Circuit City Stores, Inc. | 79,727 | |||||||||
10,290 | Gap, Inc. | 179,046 | |||||||||
32,567 | Home Depot, Inc. | 1,165,573 | |||||||||
5,655 | Limited Brands | 144,711 | |||||||||
12,053 | Lowe's Cos., Inc. | 731,256 | |||||||||
4,230 | Office Depot, Inc.* | 160,740 | |||||||||
1,654 | OfficeMax, Inc. | 67,400 | |||||||||
2,665 | RadioShack Corp. | 37,310 | |||||||||
2,265 | Sherwin-Williams Co. | 107,542 | |||||||||
11,179 | Staples, Inc. | 271,873 | |||||||||
2,083 | Tiffany & Co. | 68,781 | |||||||||
7,969 | TJX Cos., Inc. | 182,171 | |||||||||
3,861,428 | |||||||||||
Textiles, Apparel and Luxury Goods — 0.4% | |||||||||||
5,600 | Coach, Inc.* | 167,440 | |||||||||
2,039 | Jones Apparel Group, Inc. | 64,820 | |||||||||
1,864 | Liz Claiborne, Inc. | 69,080 | |||||||||
2,906 | NIKE, Inc. – Class B | 235,386 | |||||||||
1,473 | V.F. Corp. | 100,046 | |||||||||
636,772 |
See notes to financial statements.
43
n The Guardian S&P 500 Index Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
Thrifts and Mortgage Finance — 1.6% | |||||||||||
8,654 | Countrywide Financial Corp. | $ | 329,544 | ||||||||
10,495 | Federal Home Loan Mortgage Corp. | 598,320 | |||||||||
14,754 | Federal National Mortgage Assn. | 709,668 | |||||||||
3,752 | Golden West Financial Corp. | 278,398 | |||||||||
1,532 | MGIC Investment Corp. | 99,580 | |||||||||
5,355 | Sovereign Bancorp, Inc. | 108,760 | |||||||||
15,464 | Washington Mutual, Inc. | 704,849 | |||||||||
2,829,119 | |||||||||||
Tobacco — 1.5% | |||||||||||
31,165 | Altria Group, Inc. | 2,288,446 | |||||||||
1,545 | Reynolds American, Inc. | 178,138 | |||||||||
2,362 | UST, Inc. | 106,739 | |||||||||
2,573,323 | |||||||||||
Trading Companies and Distributors — 0.1% | |||||||||||
1,444 | W.W. Grainger, Inc. | 108,632 | |||||||||
Wireless Telecommunication Services — 0.7% | |||||||||||
5,814 | ALLTEL Corp. | 371,107 | |||||||||
45,819 | Sprint Nextel Corp. | 915,922 | |||||||||
1,287,029 | |||||||||||
Total Common Stocks (Cost $158,139,516) | 175,508,608 | ||||||||||
Principal Amount | Value | ||||||||||
U.S. Government Security — 0.1% | |||||||||||
U.S. Treasury Bill — 0.1% | |||||||||||
$ | 150,000 | U.S. Treasury Bill | |||||||||
4.98% due 11/2/2006 (1) | |||||||||||
(Cost $147,413) | $ | 147,413 |
Principal Amount | Value | ||||||||||
Repurchase Agreement — 0.8% | |||||||||||
$ | 1,378,000 | State Street Bank and Trust Co. | |||||||||
repurchase agreement, | |||||||||||
dated 6/30/2006, maturity | |||||||||||
value $1,378,568 at | |||||||||||
4.95%, due 7/3/2006 (2) | |||||||||||
(Cost $1,378,000) | $ | 1,378,000 | |||||||||
Total Investments — 99.8% (Cost $159,664,929) | 177,034,021 | ||||||||||
Cash, Receivables, and Other Assets Less Liabilities — 0.2% | 363,003 | ||||||||||
Net Assets — 100% | $ | 177,397,024 |
* Non-income producing security.
(1) The U.S. Treasury Bill is segregated as collateral to cover margin requirements on open futures contracts.
(2) The repurchase agreement is fully collateralized by $1,410,000 in U.S. Government Agency, 5.50%, due 5/29/2009, with a value of $1,410,000.
Contracts | Description | Expiration | Unrealized Depreciation | ||||||||||||
Purchased Futures Contracts | |||||||||||||||
5 | S & P 500 Index | 9/2006 | $ | (24,525 | ) |
See notes to financial statements.
44
n The Guardian Baillie Gifford International Growth Fund
Schedule of Investments
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
Common Stocks — 97.4% | |||||||||||
Australia — 5.7% | |||||||||||
Beverages — 0.4% | |||||||||||
78,400 | Fosters Group Ltd. | $ | 318,312 | ||||||||
Commercial Banks — 1.3% | |||||||||||
26,854 | Australia and NZ Banking Group Ltd. | 530,002 | |||||||||
23,600 | Westpac Banking Corp. | 407,798 | |||||||||
937,800 | |||||||||||
Commercial Services and Supplies — 0.5% | |||||||||||
39,000 | Brambles Inds. Ltd. | 318,425 | |||||||||
Construction Materials — 0.2% | |||||||||||
24,000 | James Hardie Inds. NV | 137,168 | |||||||||
Food and Staples Retailing — 0.7% | |||||||||||
32,806 | Woolworths Ltd. | 490,658 | |||||||||
Insurance — 0.3% | |||||||||||
29,000 | AMP Ltd. | 196,526 | |||||||||
Media — 0.1% | |||||||||||
33,000 | John Fairfax Hldgs. Ltd. | 91,853 | |||||||||
Metals and Mining — 1.4% | |||||||||||
45,406 | BHP Billiton Ltd. | 977,375 | |||||||||
Oil, Gas and Consumable Fuels — 0.4% | |||||||||||
8,400 | Woodside Petroleum Ltd. | 274,336 | |||||||||
Real Estate Investment Trusts — 0.4% | |||||||||||
24,500 | Westfield Group | 315,148 | |||||||||
4,057,601 | |||||||||||
Belgium — 1.9% | |||||||||||
Diversified Financial Services — 1.9% | |||||||||||
12,603 | Groupe Bruxelles Lambert S.A. | 1,318,979 | |||||||||
Denmark — 3.4% | |||||||||||
Chemicals — 1.1% | |||||||||||
11,980 | Novozymes AS – Class B | 808,648 | |||||||||
Commercial Banks — 2.3% | |||||||||||
42,840 | Danske Bank AS | 1,629,330 | |||||||||
2,437,978 | |||||||||||
Finland — 2.0% | |||||||||||
Construction and Engineering — 2.0% | |||||||||||
34,200 | Kone OYJ – Class B | 1,420,331 | |||||||||
France — 12.5% | |||||||||||
Beverages — 0.9% | |||||||||||
3,340 | Pernod-Ricard S.A. | 661,543 | |||||||||
Diversified Financial Services — 1.3% | |||||||||||
9,517 | Eurazeo | 941,893 | |||||||||
Food and Staples Retailing — 1.4% | |||||||||||
16,134 | Carrefour S.A. | 945,076 | |||||||||
Health Care Equipment and Supplies — 2.5% | |||||||||||
17,790 | Essilor Int'l. S.A. | 1,789,085 | |||||||||
Oil, Gas and Consumable Fuels — 2.8% | |||||||||||
29,960 | Total S.A. | 1,969,733 | |||||||||
Personal Products — 1.8% | |||||||||||
13,091 | L'Oreal S.A. | 1,235,388 | |||||||||
Pharmaceuticals — 1.8% | |||||||||||
13,265 | Sanofi-Aventis | 1,293,338 | |||||||||
8,836,056 | |||||||||||
Germany — 6.1% | |||||||||||
Diversified Financial Services — 1.0% | |||||||||||
5,000 | Deutsche Boerse AG | 680,456 | |||||||||
Health Care Providers and Services — 2.0% | |||||||||||
15,600 | Celesio AG | 1,416,743 | |||||||||
Software — 2.1% | |||||||||||
7,163 | SAP AG | 1,510,285 | |||||||||
Textiles, Apparel and Luxury Goods — 1.0% | |||||||||||
15,080 | Adidas-Salomon AG | 720,312 | |||||||||
4,327,796 |
Shares | Value | ||||||||||
Hong Kong — 1.8% | |||||||||||
Commercial Banks — 0.2% | |||||||||||
74,500 | BOC Hong Kong Hldgs. Ltd. | $ | 145,796 | ||||||||
Distributors — 0.4% | |||||||||||
136,400 | Li & Fung Ltd. | 276,593 | |||||||||
Diversified Financial Services — 0.3% | |||||||||||
32,000 | Hong Kong Exchanges & Clearing Ltd. | 206,000 | |||||||||
Media — 0.2% | |||||||||||
20,000 | Television Broadcasts Ltd. | 123,471 | |||||||||
Real Estate Management and Development — 0.7% | |||||||||||
28,000 | Cheung Kong Hldgs. Ltd. | 303,541 | |||||||||
125,000 | Hang Lung Pptys. Ltd. | 226,117 | |||||||||
529,658 | |||||||||||
1,281,518 | |||||||||||
Ireland — 3.0% | |||||||||||
Commercial Banks — 1.4% | |||||||||||
39,230 | Allied Irish Banks PLC | 940,441 | |||||||||
Construction Materials — 1.6% | |||||||||||
35,380 | CRH PLC | 1,149,247 | |||||||||
2,089,688 | |||||||||||
Japan — 22.5% | |||||||||||
Automobiles — 1.4% | |||||||||||
94,100 | Nissan Motor Co. Ltd. | 1,027,248 | |||||||||
Building Products — 1.4% | |||||||||||
76,000 | Asahi Glass Co. | 963,067 | |||||||||
Commercial Banks — 1.5% | |||||||||||
77 | Mitsubishi UFJ Financial Group, Inc. | 1,075,935 | |||||||||
Diversified Financial Services — 0.8% | |||||||||||
9,700 | Promise Co. | 561,644 | |||||||||
Electrical Equipment — 0.8% | |||||||||||
69,000 | Mitsubishi Electric Corp. | 552,578 | |||||||||
Electronic Equipment and Instruments — 2.7% | |||||||||||
3,700 | Keyence Corp. | 944,186 | |||||||||
10,300 | Nidec Corp. | 737,610 | |||||||||
20,000 | YASKAWA Electric Corp. | 232,304 | |||||||||
1,914,100 | |||||||||||
Insurance — 1.2% | |||||||||||
70,000 | Mitsui Sumitomo Insurance Co. | 878,477 | |||||||||
Internet Software and Services — 0.7% | |||||||||||
783 | Rakuten, Inc. | 464,993 | |||||||||
Machinery — 1.2% | |||||||||||
24,900 | Daikin Inds. Ltd. | 863,307 | |||||||||
Marine — 1.1% | |||||||||||
113,000 | Mitsui O.S.K. Lines Ltd. | 767,774 | |||||||||
Office Electronics — 2.0% | |||||||||||
28,950 | Canon, Inc. | 1,418,362 | |||||||||
Paper and Forest Products — 0.8% | |||||||||||
140 | Nippon Paper Group, Inc. | 572,202 | |||||||||
Real Estate Management and Development — 0.4% | |||||||||||
12,000 | Sumitomo Realty & Dev't. Co. Ltd. | 295,533 | |||||||||
Road and Rail — 0.9% | |||||||||||
105,000 | Tokyu Corp. | 612,550 | |||||||||
Specialty Retail — 1.1% | |||||||||||
7,600 | Yamada Denki Co. Ltd. | 774,569 | |||||||||
Tobacco — 1.2% | |||||||||||
230 | Japan Tobacco, Inc. | 837,605 | |||||||||
Trading Companies and Distributors — 2.4% | |||||||||||
16,400 | Hitachi High-Technologies Corp. | 498,424 | |||||||||
86,000 | Mitsui & Co. Ltd. | 1,213,711 | |||||||||
1,712,135 |
See notes to financial statements.
45
n The Guardian Baillie Gifford International Growth Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
Wireless Telecommunication Services — 0.9% | |||||||||||
104 | KDDI Corp. | $ | 638,505 | ||||||||
15,930,584 | |||||||||||
Luxembourg — 1.0% | |||||||||||
Wireless Telecommunication Services — 1.0% | |||||||||||
51,000 | SES Global | 726,650 | |||||||||
New Zealand — 0.1% | |||||||||||
Diversified Telecommunication Services — 0.1% | |||||||||||
36,800 | Telecom. Corp. of New Zealand | 90,616 | |||||||||
Russia — 0.6% | |||||||||||
Oil, Gas and Consumable Fuels — 0.3% | |||||||||||
5,300 | OAO Gazprom ADR | 222,865 | |||||||||
Wireless Telecommunication Services — 0.3% | |||||||||||
7,100 | Mobile TeleSystems ADR | 209,024 | |||||||||
431,889 | |||||||||||
Singapore — 0.4% | |||||||||||
Industrial Conglomerates — 0.4% | |||||||||||
32,000 | Keppel Corp. Ltd. | 297,063 | |||||||||
South Korea — 0.5% | |||||||||||
Semiconductors and Semiconductor Equipment — 0.5% | |||||||||||
1,080 | Samsung Electronics Co. Ltd. GDR† | 339,390 | |||||||||
Spain — 2.1% | |||||||||||
Diversified Financial Services — 1.0% | |||||||||||
12,300 | Corp. Financiera Alba S.A. | 680,728 | �� | ||||||||
Tobacco — 1.1% | |||||||||||
16,720 | Altadis S.A. | 789,675 | |||||||||
1,470,403 | |||||||||||
Sweden — 6.5% | |||||||||||
Commercial Banks — 1.4% | |||||||||||
39,376 | Svenska Handelsbanken AB – Class A | 1,012,398 | |||||||||
Health Care Equipment and Supplies — 1.2% | |||||||||||
51,430 | Getinge AB – Class B | 873,229 | |||||||||
Machinery — 3.9% | |||||||||||
74,580 | Atlas Copco AB – Class B | 1,933,035 | |||||||||
67,395 | Sandvik AB | 782,327 | |||||||||
2,715,362 | |||||||||||
4,600,989 | |||||||||||
Switzerland — 5.7% | |||||||||||
Building Products — 1.0% | |||||||||||
610 | Geberit AG | 704,201 | |||||||||
Commercial Banks — 2.8% | |||||||||||
17,810 | UBS AG | 1,948,434 | |||||||||
Health Care Equipment and Supplies — 0.9% | |||||||||||
2,600 | Straumann Hldg. AG | 661,754 | |||||||||
Machinery — 1.0% | |||||||||||
13,280 | Schindler Hldg. AG | 687,934 | |||||||||
4,002,323 | |||||||||||
Taiwan — 0.3% | |||||||||||
Semiconductors and Semiconductor Equipment — 0.3% | |||||||||||
22,327 | Taiwan Semiconductor Mfg. Co. Ltd. ADR | 204,961 | |||||||||
United Kingdom — 21.3% | |||||||||||
Commercial Banks — 3.0% | |||||||||||
48,164 | Royal Bank of Scotland | 1,583,188 | |||||||||
23,000 | Standard Chartered PLC | 561,281 | |||||||||
2,144,469 |
Shares | Value | ||||||||||
Commercial Services and Supplies — 1.2% | |||||||||||
56,000 | Capita Group PLC | $ | 477,791 | ||||||||
141,000 | Hays PLC | 351,909 | |||||||||
829,700 | |||||||||||
Health Care Equipment and Supplies — 0.5% | |||||||||||
44,000 | Smith & Nephew PLC | 338,802 | |||||||||
Hotels, Restaurants and Leisure — 0.8% | |||||||||||
14,800 | Carnival PLC | 602,774 | |||||||||
Media — 2.3% | |||||||||||
73,000 | Reed Elsevier PLC | 736,875 | |||||||||
90,805 | Yell Group PLC | 858,684 | |||||||||
1,595,559 | |||||||||||
Metals and Mining — 1.1% | |||||||||||
40,000 | BHP Billiton PLC | 775,735 | |||||||||
Oil, Gas and Consumable Fuels — 6.1% | |||||||||||
79,000 | BG Group PLC | 1,055,221 | |||||||||
20,500 | Cairn Energy PLC* | 831,133 | |||||||||
126,097 | John Wood Group PLC | 545,505 | |||||||||
56,000 | Royal Dutch Shell PLC – Class A | 1,884,246 | |||||||||
4,316,105 | |||||||||||
Pharmaceuticals — 2.2% | |||||||||||
56,302 | GlaxoSmithKline PLC | 1,572,775 | |||||||||
Specialty Retail — 1.2% | |||||||||||
200,000 | Kingfisher PLC | 881,854 | |||||||||
Tobacco — 2.0% | |||||||||||
42,000 | Gallaher Group PLC | 656,122 | |||||||||
24,000 | Imperial Tobacco Group PLC | 740,535 | |||||||||
1,396,657 | |||||||||||
Trading Companies and Distributors — 0.9% | |||||||||||
29,000 | Wolseley PLC | 639,612 | |||||||||
15,094,042 | |||||||||||
Total Common Stocks (Cost $49,121,947) | 68,958,857 | ||||||||||
Preferred Stocks — 2.2% | |||||||||||
Brazil — 2.2% | |||||||||||
Commercial Banks — 0.5% | |||||||||||
13,100 | Banco Itau Hldg. Financeira S.A. ADR | $ | 381,996 | ||||||||
Oil, Gas and Consumable Fuels — 1.7% | |||||||||||
14,700 | Petroleo Brasileiro S.A. ADR | 1,173,648 | |||||||||
Total Preferred Stocks (Cost $635,331) | 1,555,644 |
See notes to financial statements.
46
n The Guardian Baillie Gifford International Growth Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Principal Amount | Value | ||||||||||
Repurchase Agreement — 0.4% | |||||||||||
$ | 297,000 | State Street Bank and Trust Co. | |||||||||
repurchase agreement, | |||||||||||
dated 6/30/2006, maturity | |||||||||||
value $297,062 at | |||||||||||
2.50%, due 7/3/2006 (1) | |||||||||||
(Cost $297,000) | $ | 297,000 | |||||||||
Total Investments — 100.0% (Cost $50,054,278) | 70,811,501 | ||||||||||
Cash, Receivables, and Other Assets Less Liabilities — 0.0% | 15,409 | ||||||||||
Net Assets — 100% | $ | 70,826,910 |
† Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to certain qualified buyers. At 6/30/2006, the aggregate market value of these securities amounted to $339,390 representing 0.5% of net assets which have been deemed liquid pursuant to the Fund's liquidity procedures approved by the Board of Trustees.
* Non-income producing security.
(1) The repurchase agreement is fully collateralized by $265,000 in U.S. Treasury Note, 7.25%, due 5/15/2016, with a value of $307,980.
Glossary of Terms:
ADR — American Depositary Receipt.
GDR — Global Depositary Receipt .
See notes to financial statements.
47
n The Guardian Baillie Gifford Emerging Markets Fund
Schedule of Investments
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
Common Stocks — 94.7% | |||||||||||
Argentina — 0.0% | |||||||||||
Food and Staples Retailing — 0.0% | |||||||||||
11,480 | Imp. Y Exp. Patagonia | $ | 68,871 | ||||||||
Bolivia — 0.3% | |||||||||||
Metals and Mining — 0.3% | |||||||||||
43,000 | Apex Silver Mines Ltd.* | 647,150 | |||||||||
Brazil — 6.7% | |||||||||||
Metals and Mining — 2.4% | |||||||||||
195,800 | Comp. Vale Do Rio Doce ADR | 4,707,032 | |||||||||
Oil, Gas and Consumable Fuels — 4.3% | |||||||||||
91,900 | Petroleo Brasileiro S.A. ADR | 8,207,589 | |||||||||
12,914,621 | |||||||||||
Chile — 0.4% | |||||||||||
Commercial Banks — 0.4% | |||||||||||
21,000 | Banco Santander Chile ADR | 847,140 | |||||||||
Egypt — 1.3% | |||||||||||
Construction Materials — 0.5% | |||||||||||
14,500 | Orascom Construction Inds. GDR | 912,050 | |||||||||
Wireless Telecommunication Services — 0.8% | |||||||||||
40,392 | Orascom Telecom Hldg. SAE GDR | 1,647,994 | |||||||||
2,560,044 | |||||||||||
Hong Kong — 2.7% | |||||||||||
Diversified Telecommunication Services — 0.5% | |||||||||||
580,000 | Hutchison Telecom. Int'l. Ltd.* | 944,638 | |||||||||
Electronic Equipment and Instruments — 0.5% | |||||||||||
380,500 | Kingboard Chemical Hldgs. Ltd. | 1,075,315 | |||||||||
Wireless Telecommunication Services — 1.7% | |||||||||||
572,000 | China Mobile (Hong Kong) Ltd. | 3,269,834 | |||||||||
5,289,787 | |||||||||||
Hungary — 0.9% | |||||||||||
Commercial Banks — 0.9% | |||||||||||
64,000 | OTP Bank Rt. | 1,810,503 | |||||||||
India — 5.0% | |||||||||||
Chemicals — 2.4% | |||||||||||
82,900 | Reliance Inds. Ltd. GDR† | 4,687,995 | |||||||||
Information Technology Services — 2.6% | |||||||||||
64,200 | Infosys Technologies Ltd. ADR | 4,905,522 | |||||||||
9,593,517 | |||||||||||
Indonesia — 2.8% | |||||||||||
Commercial Banks — 1.4% | |||||||||||
5,824,000 | PT Bank Rakyat Indonesia | 2,577,826 | |||||||||
Diversified Telecommunication Services — 1.4% | |||||||||||
3,433,000 | PT Telekomunikasi Indonesia | 2,724,015 | |||||||||
5,301,841 | |||||||||||
Israel — 2.4% | |||||||||||
Chemicals — 0.7% | |||||||||||
259,100 | Makhteshim-Agan Inds. Ltd. | 1,373,866 | |||||||||
Commercial Banks — 0.9% | |||||||||||
386,000 | Bank Hapoalim Ltd. | 1,659,291 | |||||||||
Pharmaceuticals — 0.8% | |||||||||||
48,000 | Teva Pharmaceutical Inds. Ltd. ADR | 1,516,320 | |||||||||
4,549,477 | |||||||||||
Malaysia — 2.9% | |||||||||||
Commercial Banks — 0.5% | |||||||||||
581,000 | Bumiputra-Commerce Hldgs. Berhad | 940,795 | |||||||||
Electric Utilities — 1.0% | |||||||||||
338,600 | Malakoff Berhad | 893,841 | |||||||||
381,000 | Tenaga Nasional Berhad | 953,926 | |||||||||
1,847,767 |
Shares | Value | ||||||||||
Food Products — 1.0% | |||||||||||
506,400 | IOI Corp. Berhad | $ | 1,970,750 | ||||||||
Real Estate Management and Development — 0.4% | |||||||||||
730,000 | SP Setia Berhad | 750,959 | |||||||||
5,510,271 | |||||||||||
Mexico — 6.1% | |||||||||||
Commercial Banks — 1.3% | |||||||||||
1,122,800 | Grupo Fin. Banorte S.A. de C.V. | 2,616,113 | |||||||||
Construction and Engineering — 0.5% | |||||||||||
336,584 | Empresas ICA S.A. de C.V.* | 954,205 | |||||||||
Food and Staples Retailing — 1.0% | |||||||||||
659,022 | Wal-Mart de Mexico S.A. de C.V. | 1,850,792 | |||||||||
Household Durables — 0.6% | |||||||||||
278,000 | Consorcio Ara S.A. de C.V. | 1,150,165 | |||||||||
Wireless Telecommunication Services — 2.7% | |||||||||||
95,200 | America Movil S.A. de C.V. ADR | 3,166,352 | |||||||||
337,000 | America Telecom S.A. de C.V.* | 1,991,380 | |||||||||
5,157,732 | |||||||||||
11,729,007 | |||||||||||
Mozambique — 0.3% | |||||||||||
Metals and Mining — 0.3% | |||||||||||
900,000 | Kenmare Resources PLC* | 644,752 | |||||||||
People's Republic of China — 3.4% | |||||||||||
Energy Equipment and Services — 1.1% | |||||||||||
1,135,000 | China Shenhua Energy Co., Ltd. | 2,082,368 | |||||||||
Oil, Gas and Consumable Fuels — 2.3% | |||||||||||
2,432,000 | CNOOC Ltd. | 1,941,342 | |||||||||
2,428,000 | PetroChina Co. Ltd. | 2,594,618 | |||||||||
4,535,960 | |||||||||||
6,618,328 | |||||||||||
Russia — 8.1% | |||||||||||
Diversified Consumer Services — 0.5% | |||||||||||
49,000 | AFK Sistema GDR | 984,900 | |||||||||
Oil, Gas and Consumable Fuels — 7.0% | |||||||||||
70,600 | LUKOIL ADR | 5,873,920 | |||||||||
181,750 | OAO Gazprom ADR | 7,642,587 | |||||||||
13,516,507 | |||||||||||
Wireless Telecommunication Services — 0.6% | |||||||||||
26,000 | VimpelCom ADR* | 1,191,320 | |||||||||
15,692,727 | |||||||||||
South Africa — 9.7% | |||||||||||
Commercial Banks — 1.4% | |||||||||||
55,000 | ABSA Group Ltd. | 770,138 | |||||||||
475,000 | FirstRand Ltd. | 1,120,690 | |||||||||
80,300 | Standard Bank Group Ltd. | 863,200 | |||||||||
2,754,028 | |||||||||||
Food and Staples Retailing — 0.3% | |||||||||||
93,811 | Massmart Hldgs. Ltd. | 615,541 | |||||||||
Industrial Conglomerates — 0.5% | |||||||||||
48,268 | Imperial Hldgs. Ltd.* | 909,700 | |||||||||
Media — 0.6% | |||||||||||
70,000 | Naspers Ltd. | 1,190,967 | |||||||||
Metals and Mining — 4.3% | |||||||||||
30,135 | Anglo American Platinum Corp. | 3,176,312 | |||||||||
12,800 | Impala Platinum Hldgs. Ltd. | 2,358,466 | |||||||||
52,000 | Lonmin PLC | 2,704,278 | |||||||||
8,239,056 | |||||||||||
Oil, Gas and Consumable Fuels — 2.3% | |||||||||||
113,000 | Sasol Ltd. | 4,338,266 | |||||||||
Specialty Retail — 0.3% | |||||||||||
148,000 | Edgars Consolidated Stores Ltd. | 598,157 | |||||||||
18,645,715 |
See notes to financial statements.
48
n The Guardian Baillie Gifford Emerging Markets Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Shares | Value | ||||||||||
South Korea — 20.9% | |||||||||||
Commercial Banks — 1.1% | |||||||||||
121,530 | Industrial Bank of Korea | $ | 2,049,518 | ||||||||
Commercial Services and Supplies — 1.1% | |||||||||||
47,000 | S1 Corp. | 2,110,356 | |||||||||
Construction and Engineering — 1.3% | |||||||||||
57,270 | Hyundai Development Co. | 2,474,909 | |||||||||
Food and Staples Retailing — 0.4% | |||||||||||
2,686 | Orion Corp. | 730,422 | |||||||||
Household Durables — 1.3% | |||||||||||
115,000 | Woongjin Coway Co. Ltd. | 2,521,212 | |||||||||
Industrial Conglomerates — 1.7% | |||||||||||
135,930 | Hanwha Corp. | 3,252,291 | |||||||||
Insurance — 3.1% | |||||||||||
367,000 | Meritz Fire & Marine Ins. Co. Ltd. | 2,185,560 | |||||||||
28,700 | Samsung Fire & Marine Ins. Co. Ltd. | 3,856,917 | |||||||||
6,042,477 | |||||||||||
Marine — 3.5% | |||||||||||
67,000 | Daewoo Shipbuilding & Marine Engineering Co. Ltd. | 1,970,277 | |||||||||
209,200 | Samsung Heavy Inds. Co. Ltd. | 4,828,964 | |||||||||
6,799,241 | |||||||||||
Media — 0.6% | |||||||||||
5,700 | Cheil Comms., Inc. | 1,138,498 | |||||||||
Oil, Gas and Consumable Fuels — 1.5% | |||||||||||
95,000 | GS Hldgs. Corp. | 2,983,926 | |||||||||
Pharmaceuticals — 1.1% | |||||||||||
14,435 | Yuhan Corp. | 2,213,747 | |||||||||
Trading Companies and Distributors — 4.2% | |||||||||||
291,700 | Samsung Corp. | 8,009,260 | |||||||||
40,325,857 | |||||||||||
Taiwan — 14.9% | |||||||||||
Chemicals — 1.0% | |||||||||||
1,117,000 | Taiwan Fertilizer Co. Ltd. | 1,856,519 | |||||||||
Commercial Banks — 1.8% | |||||||||||
3,485,000 | Chang Hwa Commercial Bank | 2,470,868 | |||||||||
1,686,000 | Taishin Financial Hldgs. Co. Ltd. | 1,033,908 | |||||||||
3,504,776 | |||||||||||
Computers and Peripherals — 2.9% | |||||||||||
203,000 | High Tech Computer Corp. | 5,581,489 | |||||||||
Diversified Financial Services — 2.5% | |||||||||||
2,341,499 | Shin Kong Financial Hldg. Co. Ltd. | 2,575,182 | |||||||||
4,509,570 | SinoPac Hldgs. | 2,277,807 | |||||||||
4,852,989 | |||||||||||
Electronic Equipment and Instruments — 2.9% | |||||||||||
888,470 | Hon Hai Precision Inds. Co. Ltd. | 5,489,550 | |||||||||
Multiline Retail — 0.8% | |||||||||||
2,921,500 | Far Eastern Dept. Stores Ltd. | 1,579,458 | |||||||||
Semiconductors and Semiconductor Equipment — 3.0% | |||||||||||
3,248,589 | Taiwan Semiconductor Mfg. | 5,860,999 | |||||||||
28,725,780 | |||||||||||
Thailand — 3.5% | |||||||||||
Beverages — 0.5% | |||||||||||
5,806,000 | Thai Beverage Pub. Co., Ltd.* | 971,639 | |||||||||
Commercial Banks — 1.0% | |||||||||||
692,600 | Bangkok Bank Public Co. Ltd. | 1,851,289 | |||||||||
Diversified Financial Services — 0.4% | |||||||||||
1,165,000 | TISCO Finance Pub. Co. Ltd. | 677,751 | |||||||||
Oil, Gas and Consumable Fuels — 1.5% | |||||||||||
1,035,000 | PTT Exploration & Production Pub. Co., Ltd. | 2,875,000 |
Shares | Value | ||||||||||
Wireless Telecommunication Services — 0.1% | |||||||||||
123,392 | Advanced Info Service Pub. Co. Ltd. | $ | 291,019 | ||||||||
6,666,698 | |||||||||||
Turkey — 2.4% | |||||||||||
Commercial Banks — 1.4% | |||||||||||
764,874 | Turkiye Garanti Bankasi A.S. | 1,900,728 | |||||||||
207,400 | Turkiye Vakiflar Bankasi T.A.O. | 811,025 | |||||||||
2,711,753 | |||||||||||
Food and Staples Retailing — 0.5% | |||||||||||
33,500 | BIM Birlesik Magazalar A.S. | 977,215 | |||||||||
Wireless Telecommunication Services — 0.5% | |||||||||||
217,048 | Turkcell Iletisim Hizmetleri A.S. | 992,492 | |||||||||
4,681,460 | |||||||||||
Total Common Stocks (Cost $129,742,189) | 182,823,546 | ||||||||||
Preferred Stocks — 3.4% | |||||||||||
Brazil — 3.4% | |||||||||||
Commercial Banks — 3.3% | |||||||||||
1,585,160 | Itausa-Investimentos Itau S.A. | $ | 6,383,097 | ||||||||
Electric Utilities — 0.1% | |||||||||||
10,700,000 | AES Tiete S.A. | 256,938 | |||||||||
Food Products — 0.0% | |||||||||||
4,700,000 | Comp. Lorenz S.A.*†† | 0 | |||||||||
Total Preferred Stocks (Cost $2,513,695) | 6,640,035 | ||||||||||
Principal Amount | Value | ||||||||||
Repurchase Agreement — 0.5% | |||||||||||
$ | 1,044,000 | State Street Bank and Trust Co. | |||||||||
repurchase agreement | |||||||||||
dated 6/30/2006, maturity | |||||||||||
value $1,044,218 at | |||||||||||
2.50%, due 7/3/2006 (1) | |||||||||||
(Cost $1,044,000) | $ | 1,044,000 | |||||||||
Total Investments — 98.6% (Cost $133,299,884) | 190,507,581 | ||||||||||
Cash, Receivables, and Other Assets Less Liabilities — 1.4% | 2,647,984 | ||||||||||
Net Assets — 100% | $ | 193,155,565 |
* Non-income producing security.
† Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to certain qualified buyers. At 6/30/2006 , the aggregate market value of these securities amounted to $4,687,995 representing 2.4% of net assets which have been deemed liquid pursuant to the Fund's liquidity procedures approved by the Board of Trustees.
†† At 6/30/2006, these securities have been deemed illiquid by the investment adviser with a market value of $0.
(1) The repurchase agreement is fully collateralized by $920,000 in U.S. Treasury Bond, 7.25%, due 5/15/2016, with a value of $1,069,213.
Glossary of Terms:
ADR — American Depositary Receipt.
GDR — Global Depositary Receipt.
See notes to financial statements.
49
n The Guardian Investment Quality Bond Fund
Schedule of Investments
June 30, 2006 (Unaudited)
Principal Amount | Value | ||||||||||
Asset Backed Securities — 12.2% | |||||||||||
$ | 1,495,000 | Ameriquest Mtg. Secs., Inc. 2003-5 A6 4.541% due 4/25/2033 (1) | $ | 1,450,617 | |||||||
86,252 | Amresco 1997-1 MIF 7.42% due 3/25/2027 | 85,899 | |||||||||
1,285,341 | Capital Auto Receivables Asset Tr. 2006-1 A2B 5.229% due 9/15/2008 (1) | 1,285,258 | |||||||||
1,264,000 | Carmax Auto Owner Tr. 2005-1 A4 4.35% due 3/15/2010 | 1,234,698 | |||||||||
169,708 | Caterpillar Financial Asset Tr. 2004-A A3 3.13% due 1/26/2009 | 167,146 | |||||||||
175,000 | Chase Funding Mtg. Loan 2004-1 1A6 4.266% due 6/25/2015 | 166,587 | |||||||||
Countrywide Asset-Backed Certificates 2004-10 AF3 | |||||||||||
129,595 | 3.842% due 10/25/2030 | 128,359 | |||||||||
2004-S1 A2 | |||||||||||
249,500 | 3.872% due 3/25/2020 | 244,909 | |||||||||
1,300,000 | Hertz Vehicle Financing LLC 2005-2A A1 5.463% due 2/25/2010† (1) | 1,299,981 | |||||||||
1,500,000 | New Century Home Equity Loan Tr. 2005-A A4 5.114% due 8/25/2035 (1) | 1,433,200 | |||||||||
1,200,000 | Renaissance Home Equity Loan Tr. 2005-2 AF3 4.499% due 8/25/2035 (1) | 1,170,517 | |||||||||
Residential Asset Mtg. Prods., Inc. 2004-RS9 AII2 | |||||||||||
1,550,000 | 5.663% due 5/25/2034 (1) | 1,554,189 | |||||||||
2003-RS3 AI4 | |||||||||||
750,000 | 5.67% due 4/25/2033 | 745,899 | |||||||||
919,388 | Residential Funding Mtg. Secs. 2003-HS3 AI2 3.15% due 7/25/2018 | 902,079 | |||||||||
1,662,145 | Vanderbilt Acquisition Loan Tr. 2002-1 A3 5.70% due 9/7/2023 | 1,659,032 | |||||||||
1,495,000 | Volkswagen Auto Lease Tr. 2004-A A4A 3.09% due 8/20/2010 | 1,473,653 | |||||||||
Total Asset Backed Securities (Cost $15,228,874) | 15,002,023 | ||||||||||
Collateralized Mortgage Obligations — 15.9% | |||||||||||
$ | 2,322,997 | Banc of America Funding Corp. 2006-1 3A1 5.50% due 1/25/2036 | $ | 2,201,766 | |||||||
Countrywide Home Loans 2005-21 A2 | |||||||||||
2,824,633 | 5.50% due 10/25/2035 2002-19 1A1 | 2,692,230 | |||||||||
1,007,347 | 6.25% due 11/25/2032 | 1,004,501 | |||||||||
FHLMC 2626 KA | |||||||||||
700,000 | 3.00% due 3/15/2030 1534 Z | 633,670 |
Principal Amount | Value | ||||||||||
$ | 681,123 | 5.00% due 6/15/2023 | $ | 660,175 | |||||||
2500 TD | |||||||||||
276,054 | 5.50% due 2/15/2016 2367 ME | 275,183 | |||||||||
1,200,000 | 6.50% due 10/15/2031 | 1,227,571 | |||||||||
2,481,094 | J.P. Morgan Mtg. Tr. 2005-S2 2A15 6.00% due 9/25/2035 | 2,422,945 | |||||||||
918,000 | Mastr Asset Securitization Tr. 2003-10 3A7 5.50% due 11/25/2033 | 868,995 | |||||||||
1,828,116 | Residential Funding Mtg. Secs. 2006-S3 A7 5.50% due 3/25/2036 | 1,780,932 | |||||||||
Wells Fargo Mtg.-Backed Secs. Tr. 2005-AR10 2A15 | |||||||||||
1,220,000 | 4.11% due 6/25/2035 (1) 2003-11 1A3 | 1,172,238 | |||||||||
1,500,000 | 4.75% due 10/25/2018 2005-5 1A1 | 1,452,567 | |||||||||
1,998,549 | 5.00% due 5/25/2020 2006-1 A3 | 1,901,745 | |||||||||
1,263,544 | 5.00% due 3/25/2021 | 1,204,711 | |||||||||
Total Collateralized Mortgage Obligations (Cost $20,181,281) | 19,499,229 | ||||||||||
Commercial Mortgage Backed Securities — 11.3% | |||||||||||
Chase Comm'l. Mtg. Secs. Corp. 1998-2 A2 | |||||||||||
$ | 287,652 | 6.39% due 11/18/2030 | $ | 290,972 | |||||||
1997-1 C | |||||||||||
400,000 | 7.37% due 6/19/2029 | 402,443 | |||||||||
1,200,000 | Comm'l. Mtg. Pass-Though Certificates 2006-C7 AM 5.794% due 6/10/2046 | 1,192,761 | |||||||||
1,500,000 | Crown Castle Towers LLC 2005-1A AFX 4.643% due 6/15/2035† (1) | 1,436,298 | |||||||||
286,082 | First Union National Bank Comm'l. Mtg. Tr. 2000-C2 A1 6.94% due 10/15/2032 | 287,310 | |||||||||
1,500,000 | GE Comm'l. Mtg. Corp. 2005-C1 A5 4.772% due 6/10/2048 | 1,390,153 | |||||||||
502,259 | GMAC Comm'l. Mtg. Secs., Inc. 1997-C1 A3 6.869% due 7/15/2029 | 506,262 | |||||||||
J.P. Morgan Chase Comm'l. Mtg. Secs. Corp. 2005-LDP5 A4 | |||||||||||
1,300,000 | 5.345% due 12/15/2044 (1) 2006-RR1A A1 | 1,243,748 | |||||||||
1,200,000 | 5.61% due 10/18/2052† | 1,159,200 | |||||||||
1,250,000 | LB UBS Comm'l. Mtg. Tr. 2006-C3 AM 5.712% due 3/15/2039 | 1,229,888 |
See notes to financial statements.
50
n The Guardian Investment Quality Bond Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Principal Amount | Value | ||||||||||
Merrill Lynch Mtg. Tr. 2004-BPC1 A5 | |||||||||||
$ | 200,000 | 4.855% due 10/12/2041 (1) | $ | 186,627 | |||||||
2006-C1 AM | |||||||||||
1,100,000 | 5.844% due 5/12/2039 (1) | 1,084,728 | |||||||||
975,000 | Morgan Stanley Capital I 1999-RM1 E 7.205% due 12/15/2031 (1) | 1,003,395 | |||||||||
27,788 | Mtg. Capital Funding, Inc. 1997-MC1 A3 7.288% due 7/20/2027 | 27,806 | |||||||||
Wachovia Bank Comm'l. Mtg. Tr. 2006-C23 A4 | |||||||||||
1,200,000 | 5.418% due 1/15/2045 | 1,157,413 | |||||||||
2006-C23 AM | |||||||||||
1,290,000 | 5.466% due 1/15/2045 | 1,244,032 | |||||||||
Total Commercial Mortgage Backed Securities (Cost $14,338,753) | 13,843,036 | ||||||||||
Corporate Bonds — 20.5% | |||||||||||
Aerospace and Defense — 0.7% | |||||||||||
$ | 200,000 | General Dynamics Corp. 4.50% due 8/15/2010 | $ | 191,943 | |||||||
150,000 | TRW, Inc. 7.75% due 6/1/2029 | 174,603 | |||||||||
United Technologies Corp. | |||||||||||
200,000 | 4.375% due 5/1/2010 | 191,488 | |||||||||
300,000 | 4.875% due 5/1/2015 | 280,012 | |||||||||
838,046 | |||||||||||
Automotive — 0.7% | |||||||||||
DaimlerChrysler NA Hldg. | |||||||||||
150,000 | 4.05% due 6/4/2008 | 145,029 | |||||||||
80,000 | 6.50% due 11/15/2013 | 79,957 | |||||||||
250,000 | Ford Motor Credit Co. 6.50% due 1/25/2007 | 249,567 | |||||||||
450,000 | General Motors Acceptance Corp. 6.125% due 9/15/2006 | 449,335 | |||||||||
923,888 | |||||||||||
Chemicals — 0.1% | |||||||||||
100,000 | Lubrizol Corp. 5.50% due 10/1/2014 | 94,358 | |||||||||
Energy — 0.6% | |||||||||||
394,800 | RAS Laffan Liquefied Natural Gas 3.437% due 9/15/2009† | 378,996 | |||||||||
350,000 | Western Oil Sands, Inc. 8.375% due 5/1/2012 | 371,875 | |||||||||
750,871 | |||||||||||
Energy–Refining — 0.2% | |||||||||||
250,000 | Tosco Corp. 8.125% due 2/15/2030 | 305,649 | |||||||||
Entertainment — 0.3% | |||||||||||
400,000 | Time Warner, Inc. 7.57% due 2/1/2024 | 424,950 | |||||||||
Finance Companies — 1.4% | |||||||||||
400,000 | Capital One Bank 5.75% due 9/15/2010 | 399,056 | |||||||||
500,000 | CIT Group, Inc. 5.393% due 5/18/2007 (1) | 500,800 |
Principal Amount | Value | ||||||||||
$ | 200,000 | General Electric Capital Corp. 6.75% due 3/15/2032 | $ | 213,485 | |||||||
400,000 | Household Finance Corp. 6.375% due 11/27/2012 | 409,663 | |||||||||
250,000 | Residential Capital Corp. 6.125% due 11/21/2008 | 247,103 | |||||||||
1,770,107 | |||||||||||
Financial — 1.4% | |||||||||||
250,000 | Ameriprise Financial, Inc. 5.65% due 11/15/2015 | 240,924 | |||||||||
450,000 | Goldman Sachs Group, Inc. 5.125% due 1/15/2015 | 420,695 | |||||||||
Lehman Brothers Hldgs., Inc. | |||||||||||
300,000 | 4.25% due 1/27/2010 | 285,011 | |||||||||
200,000 | 6.625% due 1/18/2012 | 207,052 | |||||||||
250,000 | Merrill Lynch & Co. 5.00% due 1/15/2015 | 232,711 | |||||||||
Morgan Stanley | |||||||||||
150,000 | 4.00% due 1/15/2010 | 141,796 | |||||||||
200,000 | 4.75% due 4/1/2014 | 183,364 | |||||||||
1,711,553 | |||||||||||
Financial–Banks — 3.3% | |||||||||||
550,000 | Bank of America Corp. 4.875% due 9/15/2012 | 524,020 | |||||||||
300,000 | BB&T Corp. 4.90% due 6/30/2017 | 272,378 | |||||||||
Citigroup, Inc. | |||||||||||
400,000 | 4.625% due 8/3/2010 | 385,352 | |||||||||
500,000 | 5.00% due 9/15/2014 | 467,983 | |||||||||
300,000 | City Nat'l. Corp. 5.125% due 2/15/2013 | 286,356 | |||||||||
200,000 | Credit Suisse First Boston 6.50% due 1/15/2012 | 206,370 | |||||||||
200,000 | HSBC USA, Inc. 4.625% due 4/1/2014 | 183,373 | |||||||||
450,000 | J.P. Morgan Chase & Co. 5.75% due 1/2/2013 | 445,442 | |||||||||
375,000 | MBNA America Bank Nat'l. 7.125% due 11/15/2012 | 400,301 | |||||||||
400,000 | Sovereign Bank 5.125% due 3/15/2013 | 378,397 | |||||||||
150,000 | USB Capital IX 6.189% due 3/29/2049 (1) | 146,684 | |||||||||
150,000 | Wachovia Capital Tr. III 5.80% due 3/15/2042 (1) | 145,560 | |||||||||
200,000 | Wachovia Corp. 5.25% due 8/1/2014 | 190,752 | |||||||||
4,032,968 | |||||||||||
Food and Beverage — 0.5% | |||||||||||
400,000 | Kellogg Co. 2.875% due 6/1/2008 | 380,034 | |||||||||
300,000 | Kraft Foods, Inc. 5.25% due 10/1/2013 | 286,494 | |||||||||
666,528 | |||||||||||
Gaming — 0.1% | |||||||||||
150,000 | Harrahs Operating Co., Inc. 5.625% due 6/1/2015 | 138,738 | |||||||||
Health Care — 0.3% | |||||||||||
350,000 | Aetna Inc. 6.00% due 6/15/2016 | 344,928 |
See notes to financial statements.
51
n The Guardian Investment Quality Bond Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Principal Amount | Value | ||||||||||
Home Construction — 0.4% | |||||||||||
$ | 250,000 | D. R. Horton, Inc. 5.625% due 1/15/2016 | $ | 226,386 | |||||||
300,000 | Ryland Group, Inc. 5.375% due 6/1/2008 | 295,439 | |||||||||
521,825 | |||||||||||
Insurance — 1.1% | |||||||||||
250,000 | Genworth Financial, Inc. 4.95% due 10/1/2015 | 231,103 | |||||||||
125,000 | Metlife, Inc. 5.70% due 6/15/2035 | 111,506 | |||||||||
300,000 | Symetra Financial Corp. 6.125% due 4/1/2016† | 290,471 | |||||||||
300,000 | UnumProvident Finance Co. 6.85% due 11/15/2015† | 294,919 | |||||||||
400,000 | Willis Group NA 5.625% due 7/15/2015 | 371,475 | |||||||||
1,299,474 | |||||||||||
Media–Cable — 0.9% | |||||||||||
800,000 | Comcast Cable Comm., Inc. 6.875% due 6/15/2009 | 823,131 | |||||||||
300,000 | Comcast Corp. 6.45% due 3/15/2037 | 281,786 | |||||||||
1,104,917 | |||||||||||
Media–NonCable — 1.1% | |||||||||||
150,000 | News America Hldgs. 8.00% due 10/17/2016 | 168,094 | |||||||||
1,150,000 | Scholastic Corp. 5.75% due 1/15/2007 | 1,148,157 | |||||||||
1,316,251 | |||||||||||
Metals and Mining — 0.2% | |||||||||||
250,000 | Noranda, Inc. 6.00% due 10/15/2015 | 238,041 | |||||||||
Paper and Forest Products — 0.4% | |||||||||||
200,000 | Packaging Corp. of America 5.75% due 8/1/2013 | 190,163 | |||||||||
Weyerhaeuser Co. | |||||||||||
150,000 | 6.75% due 3/15/2012 | 153,249 | |||||||||
100,000 | 7.375% due 3/15/2032 | 101,242 | |||||||||
444,654 | |||||||||||
Pharmaceuticals — 0.4% | |||||||||||
Genentech, Inc. | |||||||||||
300,000 | 4.75% due 7/15/2015 | 274,741 | |||||||||
250,000 | 5.25% due 7/15/2035 | 215,806 | |||||||||
490,547 | |||||||||||
Railroads — 0.7% | |||||||||||
200,000 | Canadian Nat'l. Railway 6.20% due 6/1/2036 | 199,472 | |||||||||
150,000 | CSX Corp. 4.875% due 11/1/2009 | 145,777 | |||||||||
450,000 | Norfolk Southern Corp. 6.75% due 2/15/2011 | 466,988 | |||||||||
812,237 | |||||||||||
Real Estate Investment Trusts — 0.5% | |||||||||||
100,000 | EOP Operating LP 7.00% due 7/15/2011 | 103,886 | |||||||||
200,000 | ERP Operating LP 5.375% due 8/1/2016 | 187,706 |
Principal Amount | Value | ||||||||||
$ | 200,000 | Liberty Ppty. LP 7.25% due 3/15/2011 | $ | 209,403 | |||||||
100,000 | Regency Centers LP 6.75% due 1/15/2012 | 103,534 | |||||||||
604,529 | |||||||||||
Retailers — 0.5% | |||||||||||
250,000 | CVS Corp. 4.875% due 9/15/2014 | 228,499 | |||||||||
200,000 | J.C. Penney Co., Inc. 7.40% due 4/1/2037 | 209,496 | |||||||||
150,000 | Wal-Mart Stores, Inc. 4.50% due 7/1/2015 | 136,391 | |||||||||
574,386 | |||||||||||
Technology — 0.2% | |||||||||||
250,000 | Cisco Systems, Inc. 5.50% due 2/22/2016 | 240,057 | |||||||||
Utilities–Electric — 2.0% | |||||||||||
300,000 | Alabama Power Co. 5.65% due 3/15/2035 | 267,033 | |||||||||
200,000 | Exelon Corp. 4.45% due 6/15/2010 | 190,330 | |||||||||
200,000 | FirstEnergy Corp. 6.45% due 11/15/2011 | 203,504 | |||||||||
300,000 | Florida Power & Light Co. 4.95% due 6/1/2035 | 248,845 | |||||||||
Nevada Power Co. | |||||||||||
350,000 | 5.875% due 1/15/2015 | 331,924 | |||||||||
150,000 | 6.65% due 4/1/2036† | 141,683 | |||||||||
100,000 | Pacific Gas & Electric Co. 6.05% due 3/1/2034 | 94,382 | |||||||||
300,000 | Potomac Edison Co. 5.35% due 11/15/2014 | 286,565 | |||||||||
500,000 | Public Service Co. of New Mexico 4.40% due 9/15/2008 | 484,879 | |||||||||
200,000 | Public Service Electric Gas Co. 5.125% due 9/1/2012 | 192,691 | |||||||||
2,441,836 | |||||||||||
Wireless Communications — 1.7% | |||||||||||
300,000 | America Movil S.A. de C.V. 6.375% due 3/1/2035 | 260,766 | |||||||||
400,000 | New Cingular Wireless Svcs. 8.125% due 5/1/2012 | 440,174 | |||||||||
600,000 | Sprint Capital Corp. 8.375% due 3/15/2012 | 662,939 | |||||||||
690,000 | Verizon Wireless Capital LLC 5.375% due 12/15/2006 | 689,240 | |||||||||
2,053,119 | |||||||||||
Wireline Communications — 0.8% | |||||||||||
250,000 | Deutsche Telekom Int'l. Finance BV 8.25% due 6/15/2030 (1) | 288,637 | |||||||||
France Telecom S.A. | |||||||||||
325,000 | 7.75% due 3/1/2011 (1) | 349,117 | |||||||||
115,000 | 8.50% due 3/1/2031 (1) | 138,377 | |||||||||
200,000 | Verizon Global Funding Corp. 5.85% due 9/15/2035 | 173,989 | |||||||||
950,120 | |||||||||||
Total Corporate Bonds (Cost $25,863,053) | 25,094,577 |
See notes to financial statements.
52
n The Guardian Investment Quality Bond Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Principal Amount | Value | ||||||||||
Mortgage Pass-Through Securities — 24.3% | |||||||||||
FHLMC | |||||||||||
$ | 5,124,900 | 5.50% due 9/1/2034 - 12/1/2035 | $ | 4,931,554 | |||||||
2,412,229 | 6.00% due 11/1/2034 | 2,382,045 | |||||||||
3,721 | 7.00% due 8/1/2008 | 3,756 | |||||||||
3,000,000 | 5.50%, (30 yr. TBA) | 2,880,936 | |||||||||
FNMA | |||||||||||
6,418,828 | 5.00% due 4/1/2034 - 8/1/2035 | 6,013,622 | |||||||||
1,962,721 | 5.50% due 8/1/2019 - 5/1/2036 | 1,899,525 | |||||||||
1,267,521 | 6.00% due 12/1/2035 | 1,248,540 | |||||||||
646,593 | 6.50% due 12/1/2017 | 655,916 | |||||||||
473,426 | 7.00% due 2/1/2009 - 6/1/2032 | 485,139 | |||||||||
328,914 | 7.50% due 5/1/2027 - 2/1/2031 | 341,244 | |||||||||
129,692 | 8.00% due 6/1/2030 - 9/1/2030 | 136,872 | |||||||||
1,800,000 | 5.00%, (15 yr. TBA) | 1,733,062 | |||||||||
1,500,000 | 5.50%, (15 yr. TBA) | 1,471,875 | |||||||||
730,000 | 6.00%, (15 yr. TBA) | 732,510 | |||||||||
4,000,000 | 6.50%, (30 yr. TBA) | 4,020,000 | |||||||||
GNMA | |||||||||||
300,316 | 6.00% due 12/15/2033 | 298,310 | |||||||||
590,394 | 6.50% due 4/15/2033 | 598,472 | |||||||||
Total Mortgage Pass-Through Securities (Cost $30,645,544) | 29,833,378 | ||||||||||
Sovereign Debt Securities — 0.8% | |||||||||||
Pemex Project Funding Master Tr. | |||||||||||
$ | 200,000 | 6.625% due 6/15/2035† | $ | 181,000 | |||||||
100,000 | 6.625% due 6/15/2035 | 90,500 | |||||||||
350,000 | 7.875% due 2/1/2009 | 363,125 | |||||||||
250,000 | Quebec Province 4.60% due 5/26/2015 | 231,526 | |||||||||
100,000 | United Mexican States 4.625% due 10/8/2008 | 97,500 | |||||||||
Total Sovereign Debt Securities (Cost $992,573) | 963,651 | ||||||||||
Taxable Municipal Security — 0.1% | |||||||||||
$ | 200,000 | Oregon Sch. Brds. Association 4.759% due 6/30/2028 (Cost $200,000) | $ | 174,160 | |||||||
U.S. Government Securities — 12.6% | |||||||||||
U.S. Government Agency Securities — 3.5% | |||||||||||
$ | 1,995,000 | FHLB 5.20% due 3/28/2018 | $ | 1,847,306 | |||||||
390,000 | FHLMC 3.15% due 12/16/2008 | 369,630 | |||||||||
FNMA | |||||||||||
1,850,000 | 3.25% due 1/15/2008 | 1,789,892 | |||||||||
310,000 | 4.50% due 12/1/2009 | 299,720 | |||||||||
4,306,548 | |||||||||||
U.S. Treasury Bonds and Notes — 9.1% | |||||||||||
U.S. Treasury Bonds | |||||||||||
1,595,000 | 4.50% due 2/15/2036 | 1,430,142 | |||||||||
2,393,000 | 5.375% due 2/15/2031 | 2,434,317 | |||||||||
2,176,000 | 6.25% due 8/15/2023 (2) | 2,399,891 |
Principal Amount | Value | ||||||||||
U.S. Treasury Notes | |||||||||||
$ | 1,830,000 | 4.375% due 8/15/2012 | $ | 1,760,374 | |||||||
1,635,000 | 4.50% due 11/15/2010 - 2/15/2016 | 1,583,448 | |||||||||
180,000 | 4.75% due 3/31/2011 | 177,293 | |||||||||
175,000 | 4.875% due 5/31/2011 | 173,223 | |||||||||
1,145,000 | 5.125% due 5/15/2016 | 1,143,658 | |||||||||
11,102,346 | |||||||||||
Total U.S. Government Securities (Cost $15,815,386) | 15,408,894 | ||||||||||
Commercial Paper — 8.9% | |||||||||||
Finance Companies — 3.7% | |||||||||||
$ | 2,000,000 | Barton Capital LLC 5.15% due 7/18/2006† (2) | $ | 1,995,136 | |||||||
2,500,000 | Ricoh Finance Corp. 5.12% due 7/13/2006 (2) | 2,495,733 | |||||||||
4,490,869 | |||||||||||
Financial — 1.6% | |||||||||||
1,975,000 | Morgan Stanley 5.10% due 7/18/2006 (2) | 1,970,244 | |||||||||
Manufacturing — 1.6% | |||||||||||
2,000,000 | Danaher Corp. 5.10% due 7/13/2006 (2) | 1,996,600 | |||||||||
Personal Products — 2.0% | |||||||||||
2,500,000 | L'Oreal USA, Inc. 5.09% due 7/13/2006 (2) | 2,495,758 | |||||||||
Total Commercial Paper (Cost $10,953,471) | 10,953,471 | ||||||||||
Repurchase Agreement — 1.9% | |||||||||||
$ | 2,268,000 | State Street Bank and Trust Co. | |||||||||
repurchase agreement, | |||||||||||
dated 6/30/2006, maturity | |||||||||||
value $2,268,936 at | |||||||||||
4.95%, due 7/3/2006 (2)(3) | |||||||||||
(Cost $2,268,000) | $ | 2,268,000 | |||||||||
Total Investments — 108.5% (Cost $136,486,935) | 133,040,419 | ||||||||||
Payables for Mortgage Pass-Through Delayed Delivery Securities (2) — (8.9)% | (10,905,004 | ) | |||||||||
Cash, Receivables, and Other Assets Less Liabilities — 0.4% | 485,129 | ||||||||||
Net Assets — 100% | $ | 122,620,544 |
† Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to certain qualified buyers. At 6/30/2006, the aggregate market value of these securities amounted to $7,177,684 representing 5.9% of net assets which have been deemed liquid pursuant to the Fund's liquidity procedures approved by the Board of Trustees.
(1) Floating rate note. The rate shown is the rate in effect at 6/30/2006.
(2) Securities are segregated to cover forward mortgage purchases.
(3) The repurchase agreement is fully collateralized by $2,315,000 in U.S. Government Agency, 5.50%, due 5/29/2009, with a value of $2,315,000.
Glossary of Terms:
TBA — To Be Announced.
See notes to financial statements.
53
n The Guardian Low Duration Bond Fund
Schedule of Investments
June 30, 2006 (Unaudited)
Principal Amount | Value | ||||||||||
Asset Backed Securities — 24.4% | |||||||||||
$ | 340,000 | Ameriquest Mtg. Secs., Inc. 2003-5 A6 4.541% due 4/25/2033 | $ | 329,906 | |||||||
340,000 | Bank One Issuance Tr. 2003-A7 A7 3.35% due 3/15/2011 | 324,846 | |||||||||
326,279 | Capital Auto Receivables Asset Tr. 2006-1 A2B 5.229% due 9/15/2008 (1) | 326,258 | |||||||||
225,000 | Capital One Multi-Asset Execution Tr. 2003-A4 A4 3.65% due 7/15/2011 | 216,337 | |||||||||
390,000 | Carmax Auto Owner Tr. 2005-1 A4 4.35% due 3/15/2010 | 380,959 | |||||||||
159,526 | Caterpillar Financial Asset Tr. 2004-A A3 3.13% due 1/26/2009 | 157,117 | |||||||||
440,000 | Chase Funding Mtg. Loan 2004-1 1A6 4.266% due 6/25/2015 | 418,847 | |||||||||
378,516 | Chase Manhattan Auto Owner Tr. 2003-A A4 2.06% due 12/15/2009 | 368,018 | |||||||||
Countrywide Asset-Backed Certificates | |||||||||||
451,699 | 2004-10 AF3 3.842% due 10/25/2030 | 447,394 | |||||||||
345,000 | 2004-S1 A2 3.872% due 3/25/2020 | 338,652 | |||||||||
565,000 | Ford Credit Auto Owner Tr. 2005-B A4 4.38% due 1/15/2010 | 552,967 | |||||||||
330,000 | Hertz Vehicle Financing LLC 2005-2A A1 5.463% due 2/25/2010†(1) | 329,995 | |||||||||
340,000 | MBNA Credit Card Master Nt. Tr. 2003-A6 A6 2.75% due 10/15/2010 | 323,370 | |||||||||
134,226 | Navistar Financial Corp. Owner Tr. 2004-A A3 2.01% due 8/15/2008 | 132,726 | |||||||||
346,514 | New Century Home Equity Loan Tr. 2004-4 A4 5.603% due 2/25/2035 (1) | 346,876 | |||||||||
252,893 | PP&L Transition Bond Co. LLC 1999-1 A7 7.05% due 6/25/2009 | 255,073 | |||||||||
510,000 | Renaissance Home Equity Loan Tr. 2005-2 AF3 4.499% due 8/25/2035 (1) | 497,470 | |||||||||
Residential Asset Mtg. Prods., Inc. 2003-RZ4 A5 | |||||||||||
510,000 | 4.66% due 2/25/2032 | 488,247 | |||||||||
2004-RS9 AII2 | |||||||||||
340,000 | 5.663% due 5/25/2034 (1) | 340,919 | |||||||||
2003-RS3 AI4 | |||||||||||
550,000 | 5.67% due 4/25/2033 (2) | 546,992 | |||||||||
172,385 | Residential Funding Mtg. Secs. 2003-HS3 AI2 3.15% due 7/25/2018 | 169,140 |
Principal Amount | Value | ||||||||||
Volkswagen Auto Lease Tr. 2004-A A4A | |||||||||||
$ | 450,000 | 3.09% due 8/20/2010 | $ | 443,574 | |||||||
2005-A A2 | |||||||||||
124,325 | 3.52% due 4/20/2007 | 124,165 | |||||||||
587,000 | World Omni Auto Receivables Tr. 2005-A A4 3.82% due 11/12/2011 | 567,457 | |||||||||
Total Asset Backed Securities (Cost $8,538,755) | 8,427,305 | ||||||||||
Collateralized Mortgage Obligations — 9.2% | |||||||||||
FHLMC 2598 QC | |||||||||||
$ | 435,000 | 4.50% due 6/15/2027 | $ | 423,451 | |||||||
1534 Z | |||||||||||
284,694 | 5.00% due 6/15/2023 | 275,938 | |||||||||
2500 TD | |||||||||||
286,279 | 5.50% due 2/15/2016 | 285,375 | |||||||||
20 H | |||||||||||
126,455 | 5.50% due 10/25/2023 | 124,751 | |||||||||
1650 J | |||||||||||
266,286 | 6.50% due 6/15/2023 | 268,584 | |||||||||
FNMA 2003-24 PU | |||||||||||
327,241 | 3.50% due 11/25/2015 | 312,436 | |||||||||
2005-39 CL | |||||||||||
340,000 | 5.00% due 12/25/2021 | 332,582 | |||||||||
2003-13 ME | |||||||||||
443,000 | 5.00% due 2/25/2026 | 437,740 | |||||||||
2002-55 PC | |||||||||||
126,064 | 5.50% due 4/25/2026 | 125,325 | |||||||||
70,016 | GNMA 2002-93 NV 4.75% due 2/20/2032 | 67,678 | |||||||||
211,352 | J.P. Morgan Mtg. Tr. 2005-S2 2A15 6.00% due 9/25/2035 | 206,399 | |||||||||
330,000 | Wells Fargo Mtg.-Backed Secs. Tr. 2005-AR10 2A15 4.11% due 6/25/2035 | 317,081 | |||||||||
Total Collateralized Mortgage Obligations (Cost $3,265,374) | 3,177,340 | ||||||||||
Commercial Mortgage Backed Securities — 15.2% | |||||||||||
Chase Comm'l. Mtg. Secs. Corp. 1998-2 A2 | |||||||||||
$ | 589,452 | 6.39% due 11/18/2030 | $ | 596,254 | |||||||
1997-1 C | |||||||||||
570,000 | 7.37% due 6/19/2029 | 573,481 | |||||||||
393,000 | Comm'l. Mtg. Asset Tr. 1999-C1 A3 6.64% due 1/17/2032 | 401,949 | |||||||||
250,000 | Crown Castle Towers LLC 2005-1A AFX 4.643% due 6/15/2035† | 239,383 | |||||||||
GMAC Comm'l. Mtg. Secs., Inc. 1997-C1 A3 | |||||||||||
164,131 | 6.869% due 7/15/2029 | 165,439 | |||||||||
1999-C2 A2 | |||||||||||
293,000 | 6.945% due 9/15/2033 | 301,389 |
See notes to financial statements.
54
n The Guardian Low Duration Bond Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Principal Amount | Value | ||||||||||
Greenwich Capital Comm'l. Funding Corp. 2004-GG1 A2 | |||||||||||
$ | 222,547 | 3.835% due 6/10/2036 | $ | 217,082 | |||||||
2005-GG3 A2 | |||||||||||
336,000 | 4.305% due 8/10/2042 | 321,878 | |||||||||
504,107 | J.P. Morgan Chase Comm'l. Mtg. 2004-C1 A1 3.053% due 1/15/2038 | 479,031 | |||||||||
260,000 | J.P. Morgan Comm'l. Mtg. Fin. Corp. 1997-C5 B 7.159% due 9/15/2029 | 262,768 | |||||||||
LB UBS Comm'l. Mtg. Tr. 2003-C1 A2 | |||||||||||
250,000 | 3.323% due 3/15/2027 | 240,768 | |||||||||
2001-C3 A1 | |||||||||||
61,880 | 6.058% due 6/15/2020 | 62,360 | |||||||||
2000-C5 A1 | |||||||||||
369,709 | 6.41% due 12/15/2019 | 372,334 | |||||||||
485,000 | Morgan Stanley Capital I 1999-RM1 E 7.205% due 12/15/2031 (1) | 499,125 | |||||||||
503,986 | Salomon Brothers Mtg. Secs. VII, Inc. 2001-C2 A2 6.168% due 2/13/2010 | 506,017 | |||||||||
Total Commercial Mortgage Backed Securities (Cost $5,386,897) | 5,239,258 | ||||||||||
Corporate Bonds — 27.9% | |||||||||||
Automotive — 3.2% | |||||||||||
$ | 500,000 | Daimler Chrysler NA Hldg. 4.75% due 1/15/2008 | $ | 491,824 | |||||||
200,000 | Ford Motor Credit Co. 6.50% due 1/25/2007 | 199,654 | |||||||||
400,000 | General Motors Acceptance Corp. 6.125% due 9/15/2006 | 399,409 | |||||||||
1,090,887 | |||||||||||
Chemicals — 1.5% | |||||||||||
200,000 | Lyondell Chemical Co. 10.875% due 5/1/2009 | 203,000 | |||||||||
328,000 | Praxair, Inc. 4.75% due 7/15/2007 | 324,874 | |||||||||
527,874 | |||||||||||
Entertainment — 1.2% | |||||||||||
400,000 | AOL Time Warner, Inc. 6.15% due 5/1/2007 | 401,372 | |||||||||
Finance Companies — 3.4% | |||||||||||
500,000 | General Electric Capital Corp. 3.50% due 8/15/2007 | 488,260 | |||||||||
300,000 | Istar Financial, Inc. 7.00% due 3/15/2008 | 304,762 | |||||||||
400,000 | Residential Capital Corp. 6.125% due 11/21/2008 | 395,364 | |||||||||
1,188,386 | |||||||||||
Financial–Banks — 0.8% | |||||||||||
300,000 | Popular NA, Inc. 3.875% due 10/1/2008 | 287,032 |
Principal Amount | Value | ||||||||||
Insurance — 1.7% | |||||||||||
$ | 300,000 | UnitedHealth Group, Inc. 3.375% due 8/15/2007 | $ | 292,302 | |||||||
300,000 | WellPoint, Inc. 3.75% due 12/14/2007 | 291,497 | |||||||||
583,799 | |||||||||||
Media–Cable — 2.4% | |||||||||||
300,000 | Comcast Corp. 7.625% due 4/15/2008 | 308,596 | |||||||||
500,000 | Cox Comm., Inc. 7.75% due 8/15/2006 | 500,851 | |||||||||
809,447 | |||||||||||
Media–NonCable — 0.9% | |||||||||||
300,000 | Scholastic Corp. 5.75% due 1/15/2007 | 299,519 | |||||||||
Metals and Mining — 1.5% | |||||||||||
500,000 | Steel Dynamics, Inc. 9.50% due 3/15/2009 | 515,000 | |||||||||
Natural Gas–Pipelines — 2.6% | |||||||||||
500,000 | Enterprise Prod. Operating LP 4.00% due 10/15/2007 | 486,490 | |||||||||
400,000 | Sempra Energy 4.621% due 5/17/2007 | 396,102 | |||||||||
882,592 | |||||||||||
Paper and Forest Products — 0.8% | |||||||||||
300,000 | Packaging Corp. of America 4.375% due 8/1/2008 | 291,341 | |||||||||
Real Estate Investment Trusts — 2.3% | |||||||||||
505,000 | Avalon Bay Communities, Inc. 6.80% due 7/15/2006 | 505,147 | |||||||||
300,000 | EOP Operating LP 6.763% due 6/15/2007 | 302,364 | |||||||||
807,511 | |||||||||||
Retailers — 1.7% | |||||||||||
300,000 | CVS Corp. 3.875% due 11/1/2007 | 292,051 | |||||||||
305,000 | Federated Dept. Stores 6.625% due 9/1/2008 | 309,873 | |||||||||
601,924 | |||||||||||
Services — 0.7% | |||||||||||
250,000 | Cendant Corp. 6.875% due 8/15/2006 | 250,246 | |||||||||
Utilities–Electric and Water — 1.7% | |||||||||||
289,000 | American Electric Power 4.709% due 8/16/2007 (1) | 285,462 | |||||||||
300,000 | Tampa Electric 5.375% due 8/15/2007 | 298,210 | |||||||||
583,672 | |||||||||||
Wireline Communications — 1.5% | |||||||||||
500,000 | Sprint Capital Corp. 6.00% due 1/15/2007 | 500,671 | |||||||||
Total Corporate Bonds (Cost $9,739,935) | 9,621,273 |
See notes to financial statements.
55
n The Guardian Low Duration Bond Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Principal Amount | Value | ||||||||||
Sovereign Debt Security — 0.8% | |||||||||||
$ | 300,000 | United Mexican States 4.625% due 10/8/2008 (Cost $295,802) | $ | 292,500 | |||||||
U.S. Government Securities — 17.7% | |||||||||||
U.S. Government Agency Securities — 11.2% | |||||||||||
$ | 585,000 | FHLMC 3.15% due 12/16/2008 | $ | 554,444 | |||||||
FNMA | |||||||||||
165,000 | 3.75% due 3/18/2010 (2) | 157,431 | |||||||||
920,000 | 3.875% due 2/15/2010 | 872,605 | |||||||||
520,000 | 4.50% due 12/1/2009 | 502,757 | |||||||||
1,800,000 | 5.125% due 4/15/2011 | 1,772,867 | |||||||||
3,860,104 | |||||||||||
U.S. Treasury Notes — 6.5% | |||||||||||
U.S. Treasury Notes | |||||||||||
1,685,000 | 4.50% due 11/15/2010 | 1,645,903 | |||||||||
50,000 | 4.875% due 4/30/2011 | 49,490 | |||||||||
555,000 | 5.125% due 6/30/2008 | 554,653 | |||||||||
2,250,046 | |||||||||||
Total U.S. Government Securities (Cost $6,223,580) | 6,110,150 | ||||||||||
Repurchase Agreement — 5.6% | |||||||||||
$ | 1,938,000 | State Street Bank and Trust Co. | |||||||||
repurchase agreement, | |||||||||||
dated 6/30/2006, maturity | |||||||||||
value $1,938,799 at | |||||||||||
4.95%, due 7/3/2006 (3) | |||||||||||
(Cost $1,938,000) | $ | 1,938,000 | |||||||||
Total Investments — 100.8% (Cost $35,388,343) | 34,805,826 | ||||||||||
Liabilities in Excess of Cash, Receivables and Other Assets — (0.8)% | (269,625 | ) | |||||||||
Net Assets — 100% | $ | 34,536,201 |
† Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to certain qualified buyers. At 6/30/2006, the aggregate market value of these securities amounted to $569,378 representing 1.6% of net assets which have been deemed liquid pursuant to the Fund's liquidity procedures approved by the Board of Trustees.
(1) Floating rate note. The rate shown is the rate in effect at 6/30/2006.
(2) Step-up bond.
(3) The repurchase agreement is fully collateralized by $1,980,000 in U.S. Government Agency, 5.50%, due 5/29/2009, with a value of $1,980,000.
See notes to financial statements.
56
n The Guardian High Yield Bond Fund
Schedule of Investments
June 30, 2006 (Unaudited)
Principal Amount | Rating Moody's/ S&P* | Value | |||||||||||||
Corporate Bonds — 94.0% | |||||||||||||||
Aerospace and Defense — 2.3% | |||||||||||||||
Comm. & Power Inds., Inc. | |||||||||||||||
$ | 671,000 | Sr. Sub. Nt. 8.00% due 2/1/2012 | B3/B– | $ | 677,710 | ||||||||||
DRS Technologies, Inc. | |||||||||||||||
320,000 | Sr. Sub. Nt. 7.625% due 2/1/2018 | B3/B | 318,400 | ||||||||||||
L-3 Comms. Corp. | |||||||||||||||
404,000 | Sr. Sub. Nt. 6.125% due 7/15/2013 | Ba3/BB+ | 384,810 | ||||||||||||
200,000 | Sr. Sub. Nt. 6.375% due 10/15/2015 | Ba3/BB+ | 191,000 | ||||||||||||
Transdigm, Inc. | |||||||||||||||
200,000 | Sr. Sub. Nt.† 7.75% due 7/15/2014 | B3/B– | 199,000 | ||||||||||||
1,770,920 | |||||||||||||||
Automotive — 10.2% | |||||||||||||||
American Axle & Mfg., Inc. | |||||||||||||||
400,000 | Sr. Nt. 5.25% due 2/11/2014 | Ba3/BB | 332,000 | ||||||||||||
Ford Motor Credit Co. | |||||||||||||||
800,000 | Nt. 6.75% due 8/15/2008 | Ba2/B+ | 748,825 | ||||||||||||
1,225,000 | Nt. 7.00% due 10/1/2013 | Ba2/B+ | 1,054,281 | ||||||||||||
1,400,000 | Sr. Nt. 7.25% due 10/25/2011 | Ba2/B+ | 1,241,905 | ||||||||||||
538,391 | Sr. Nt.† 9.75% due 9/15/2010 | Ba2/B+ | 524,600 | ||||||||||||
General Motors Acceptance Corp. | |||||||||||||||
400,000 | Nt. 6.15% due 4/5/2007 | Ba1/BB | 397,661 | ||||||||||||
3,060,000 | Nt. 6.75% due 12/1/2014 | Ba1/BB | 2,842,189 | ||||||||||||
Keystone Automotive Operations | |||||||||||||||
400,000 | Sr. Sub. Nt. 9.75% due 11/1/2013 | Caa1/B– | 378,000 | ||||||||||||
United Components, Inc. | |||||||||||||||
400,000 | Sr. Sub. Nt. 9.375% due 6/15/2013 | Caa1/B– | 394,000 | ||||||||||||
7,913,461 | |||||||||||||||
Building Materials — 1.0% | |||||||||||||||
Norcraft Cos. Fin. | |||||||||||||||
500,000 | Sr. Sub. Nt. 9.00% due 11/1/2011 | B3/B– | 508,750 | ||||||||||||
U.S. Concrete, Inc. | |||||||||||||||
300,000 | Sr. Sub Nt.† 8.375% due 4/1/2014 | B3/B– | 303,000 | ||||||||||||
811,750 | |||||||||||||||
Chemicals — 5.0% | |||||||||||||||
Equistar Chemicals LP | |||||||||||||||
1,185,000 | Sr. Nt. 10.125% due 9/1/2008 | B1/BB– | 1,247,212 | ||||||||||||
Koppers, Inc. | |||||||||||||||
398,000 | Sr. Nt. 9.875% due 10/15/2013 | B1/B | 426,855 | ||||||||||||
Lyondell Chemical Co. | |||||||||||||||
1,502,000 | Sr. Sub. Nt. 10.875% due 5/1/2009 | B2/B | 1,524,530 |
Principal Amount | Rating Moody's/ S&P* | Value | |||||||||||||
Nell AF SARL | |||||||||||||||
$ | 700,000 | Sr. Nt.† 8.375% due 8/15/2015 | B2/B– | $ | 672,875 | ||||||||||
3,871,472 | |||||||||||||||
Construction Machinery — 2.4% | |||||||||||||||
Nationsrent, Inc. | |||||||||||||||
400,000 | Sr. Sub. Nt. 9.50% due 5/1/2015 | Caa1/B– | 423,000 | ||||||||||||
Terex Corp. | |||||||||||||||
285,000 | Sr. Sub. Nt. 9.25% due 7/15/2011 | B2/B+ | 302,813 | ||||||||||||
190,000 | Sr. Sub. Nt. Ser. B 10.375% due 4/1/2011 | B2/B+ | 200,925 | ||||||||||||
United Rentals NA, Inc. | |||||||||||||||
960,000 | Sr. Sub. Nt. 7.75% due 11/15/2013 | Caa1/B | 912,000 | ||||||||||||
1,838,738 | |||||||||||||||
Consumer Products — 1.7% | |||||||||||||||
Elizabeth Arden, Inc. | |||||||||||||||
410,000 | Sr. Sub. Nt. 7.75% due 1/15/2014 | B2/B– | 402,825 | ||||||||||||
Jafra Cosmetics | |||||||||||||||
539,000 | Sr. Sub. Nt. 10.75% due 5/15/2011 | B3/B– | 578,078 | ||||||||||||
Riddell Bell Hldgs., Inc. | |||||||||||||||
360,000 | Sr. Sub. Nt. 8.375% due 10/1/2012 | B3/B– | 354,600 | ||||||||||||
1,335,503 | |||||||||||||||
Electric — 9.1% | |||||||||||||||
Mission Energy Hldg. | |||||||||||||||
1,170,000 | Sr. Sec. Nt. 13.50% due 7/15/2008 | B2/B– | 1,304,550 | ||||||||||||
Nevada Power Co. | |||||||||||||||
515,000 | Mtg. Nt. Ser. L 5.875% due 1/15/2015 | Ba1/BB | 488,402 | ||||||||||||
300,000 | Mtg. Nt. Ser. N† 6.65% due 4/1/2036 | Ba1/BB | 283,366 | ||||||||||||
NRG Energy, Inc. | |||||||||||||||
500,000 | Sr. Nt. 7.375% due 2/1/2016 | B1/B– | 487,500 | ||||||||||||
Reliant Resources, Inc. | |||||||||||||||
400,000 | Sr. Sec. Nt. 9.50% due 7/15/2013 | B2/B | 402,000 | ||||||||||||
Sierra Pacific Resources | |||||||||||||||
1,600,000 | Sr. Nt. 8.625% due 3/15/2014 | B1/B– | 1,694,954 | ||||||||||||
TECO Energy, Inc. | |||||||||||||||
202,000 | Sr. Nt. 6.75% due 5/1/2015 | Ba2/BB | 196,445 | ||||||||||||
1,295,000 | Nt. 7.00% due 5/1/2012 | Ba2/BB | 1,288,525 | ||||||||||||
UtiliCorp United, Inc. | |||||||||||||||
880,000 | Sr. Nt. 7.75% due 6/15/2011 | B2/B– | 910,800 | ||||||||||||
7,056,542 | |||||||||||||||
Energy — 6.0% | |||||||||||||||
Basic Energy Services, Inc. | |||||||||||||||
200,000 | Sr. Nt.† 7.125% due 4/15/2016 | B1/B | 186,000 |
See notes to financial statements.
57
n The Guardian High Yield Bond Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Principal Amount | Rating Moody's/ S&P* | Value | |||||||||||||
Belden & Blake Corp. | |||||||||||||||
$ | 200,000 | Sr. Sec. Nt. 8.75% due 7/15/2012 | NR/CCC+ | $ | 203,000 | ||||||||||
Chaparral Energy, Inc. | |||||||||||||||
190,000 | Sr. Nt.† 8.50% due 12/1/2015 | B3/B | 189,050 | ||||||||||||
Chesapeake Energy Corp. | |||||||||||||||
318,000 | Sr. Nt. 6.375% due 6/15/2015 | Ba2/BB | 294,945 | ||||||||||||
300,000 | Sr. Nt. 7.625% due 7/15/2013 | Ba2/BB | 301,875 | ||||||||||||
Dresser, Inc. | |||||||||||||||
447,000 | Sr. Nt. 10.125% due 4/15/2011 | B2/CCC+ | 453,705 | ||||||||||||
Encore Acquisition Co. | |||||||||||||||
600,000 | Sr. Sub. Nt. 7.25% due 12/1/2017 | B2/B | 576,000 | ||||||||||||
Hanover Compressor Co. | |||||||||||||||
100,000 | Sr. Nt. 7.50% due 4/15/2013 | B3/B | 98,000 | ||||||||||||
Hilcorp Energy I LP | |||||||||||||||
200,000 | Sr. Nt.† 9.00% due 6/1/2016 | B3/B | 201,500 | ||||||||||||
Newpark Resources, Inc. | |||||||||||||||
700,000 | Sr. Sub. Nt. Ser. B 8.625% due 12/15/2007 | B2/B | 700,000 | ||||||||||||
Pioneer Natural Resource Co. | |||||||||||||||
600,000 | Sr. Nt. 6.875% due 5/1/2018 | Ba1/BB+ | 578,163 | ||||||||||||
Pride Int'l., Inc. | |||||||||||||||
219,000 | Sr. Nt. 7.375% due 7/15/2014 | Ba2/BB– | 220,095 | ||||||||||||
Western Oil Sands, Inc. | |||||||||||||||
298,000 | Sr. Sec Nt. 8.375% due 5/1/2012 | Ba2/BB+ | 316,625 | ||||||||||||
Whiting Petroleum Corp. | |||||||||||||||
400,000 | Sr. Sub. Nt. 7.00% due 2/1/2014 | B2/B | 378,000 | ||||||||||||
4,696,958 | |||||||||||||||
Entertainment — 0.4% | |||||||||||||||
Intrawest Corp. | |||||||||||||||
350,000 | Sr. Nt. 7.50% due 10/15/2013 | B1/B+ | 348,250 | ||||||||||||
Environmental — 0.4% | |||||||||||||||
Allied Waste NA, Inc. | |||||||||||||||
335,000 | Sr. Nt. 7.875% due 4/15/2013 | B2/BB– | 335,000 | ||||||||||||
Food and Beverage — 3.1% | |||||||||||||||
ASG Consolidated LLC | |||||||||||||||
550,000 | Sr. Disc. Nt. (1) 0/11.50% due 11/1/2011 | Caa1/B– | 463,375 | ||||||||||||
Dean Foods Co. | |||||||||||||||
600,000 | Sr. Nt. 7.00% due 6/1/2016 | Ba2/BB– | 580,500 | ||||||||||||
Del Monte Corp. | |||||||||||||||
618,000 | Sr. Sub. Nt. 6.75% due 2/15/2015 | B2/B | 573,195 | ||||||||||||
Michael Foods, Inc. | |||||||||||||||
808,000 | Sr. Sub. Nt. 8.00% due 11/15/2013 | B3/B– | 793,860 | ||||||||||||
2,410,930 |
Principal Amount | Rating Moody's/ S&P* | Value | |||||||||||||
Gaming — 3.1% | |||||||||||||||
Boyd Gaming Corp. | |||||||||||||||
$ | 600,000 | Sr. Sub. Nt. 6.75% due 4/15/2014 | B1/B+ | $ | 569,250 | ||||||||||
400,000 | Sr. Sub. Nt. 7.125% due 2/1/2016 | B1/B+ | 386,500 | ||||||||||||
MGM MIRAGE, Inc. | |||||||||||||||
500,000 | Sr. Nt. 6.625% due 7/15/2015 | Ba2/BB | 466,250 | ||||||||||||
400,000 | Sr. Nt. 8.50% due 9/15/2010 | Ba2/BB | 415,500 | ||||||||||||
Pokagon Gaming Authority | |||||||||||||||
200,000 | Sr. Nt.† 10.375% due 6/15/2014 | B3/B | 206,750 | ||||||||||||
Station Casinos | |||||||||||||||
400,000 | Sr. Sub. Nt. 6.875% due 3/1/2016 | B1/B+ | 373,000 | ||||||||||||
2,417,250 | |||||||||||||||
Health Care — 4.4% | |||||||||||||||
Coventry Health Care, Inc. | |||||||||||||||
618,000 | Sr. Nt. 6.125% due 1/15/2015 | Ba1/BBB– | 587,540 | ||||||||||||
DaVita, Inc. | |||||||||||||||
560,000 | Sr. Sub. Nt.† 7.25% due 3/15/2015 | B3/B | 537,600 | ||||||||||||
Fisher Scientific Int'l., Inc. | |||||||||||||||
800,000 | Sr. Sub. Nt. 6.125% due 7/1/2015 | Ba2/BB+ | 771,000 | ||||||||||||
Fresenius Medical Care | |||||||||||||||
570,000 | Capital Tr. 7.875% due 6/15/2011 | B1/B+ | 575,700 | ||||||||||||
HCA, Inc. | |||||||||||||||
600,000 | Sr. Nt. 6.30% due 10/1/2012 | Ba2/BB+ | 564,313 | ||||||||||||
HealthSouth Corp. | |||||||||||||||
400,000 | Sr. Nt.† 10.75% due 6/15/2016 | B3/CCC+ | 392,000 | ||||||||||||
3,428,153 | |||||||||||||||
Home Construction — 1.3% | |||||||||||||||
K. Hovnanian Enterprises, Inc. | |||||||||||||||
400,000 | Sr. Nt. 6.25% due 1/15/2016 | Ba1/BB | 347,000 | ||||||||||||
300,000 | Sr. Nt. 8.625% due 1/15/2017 | Ba1/BB | 297,750 | ||||||||||||
WCI Communities, Inc. | |||||||||||||||
270,000 | Sr. Sub. Nt. 6.625% due 3/15/2015 | Ba3/B+ | 224,100 | ||||||||||||
200,000 | Sr. Sub. Nt. 7.875% due 10/1/2013 | Ba3/B+ | 175,500 | ||||||||||||
1,044,350 | |||||||||||||||
Insurance — 0.5% | |||||||||||||||
UnumProvident Finance Co. | |||||||||||||||
400,000 | Sr. Nt.† 6.85% due 11/15/2015 | Ba1/BB+ | 393,225 | ||||||||||||
Lodging — 1.1% | |||||||||||||||
Host Marriott LP | |||||||||||||||
900,000 | Sr. Nt. Ser. O 6.375% due 3/15/2015 | Ba2/BB | 846,000 |
See notes to financial statements.
58
n The Guardian High Yield Bond Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Principal Amount | Rating Moody's/ S&P* | Value | |||||||||||||
Media–Cable — 3.8% | |||||||||||||||
Charter Comm. Hldgs. II | |||||||||||||||
$ | 1,272,000 | Sr. Nt. 10.25% due 9/15/2010 | Caa1/CCC– | $ | 1,275,180 | ||||||||||
Charter Comm. Operating LLC | |||||||||||||||
372,000 | Sr. Nt.† 8.00% due 4/30/2012 | B2/B– | 370,140 | ||||||||||||
CSC Hldgs., Inc. | |||||||||||||||
400,000 | Sr. Nt. Ser. B 7.625% due 4/1/2011 | B2/B+ | 400,000 | ||||||||||||
Insight Comm., Inc. | |||||||||||||||
515,000 | Sr. Disc. Nt. 12.25% due 2/15/2011 | Caa1/CCC+ | 544,612 | ||||||||||||
Insight Midwest LP | |||||||||||||||
373,000 | Sr. Nt. 10.50% due 11/1/2010 | B2/B | 388,853 | ||||||||||||
2,978,785 | |||||||||||||||
Media–NonCable — 5.4% | |||||||||||||||
Block Comm., Inc. | |||||||||||||||
200,000 | Sr. Nt.† 8.25% due 12/15/2015 | B1/B– | 192,000 | ||||||||||||
CMP Susquehanna Corp. | |||||||||||||||
200,000 | Sr. Sub. Nt.† 9.875% due 5/15/2014 | B3/CCC | 186,000 | ||||||||||||
Dex Media East LLC | |||||||||||||||
351,000 | Sr. Sub. Nt. 12.125% due 11/15/2012 | B1/B | 393,997 | ||||||||||||
DirecTV Hldgs. Fin. | |||||||||||||||
388,000 | Sr. Nt. 6.375% due 6/15/2015 | Ba2/BB– | 357,930 | ||||||||||||
181,000 | Sr. Nt. 8.375% due 3/15/2013 | Ba2/BB– | 189,598 | ||||||||||||
EchoStar DBS Corp. | |||||||||||||||
365,000 | Sr. Nt. 6.375% due 10/1/2011 | Ba3/BB– | 349,488 | ||||||||||||
295,000 | Sr. Nt. 6.625% due 10/1/2014 | Ba3/BB– | 277,300 | ||||||||||||
Houghton Mifflin Co. | |||||||||||||||
500,000 | Sr. Sub. Nt. 9.875% due 2/1/2013 | Caa1/CCC+ | 518,750 | ||||||||||||
Hughes Network Systems LLC/ HNS Finance | |||||||||||||||
100,000 | Sr. Nt.† 9.50% due 4/15/2014 | B1/B– | 98,000 | ||||||||||||
R.H. Donnelley Corp. | |||||||||||||||
140,000 | Sr. Disc. Nt. Ser. A-1† 6.875% due 1/15/2013 | Caa1/B | 128,800 | ||||||||||||
R.H. Donnelley Fin. Corp. I | |||||||||||||||
465,000 | Sr. Sub. Nt. 10.875% due 12/15/2012 | B2/B | 510,337 | ||||||||||||
R.H. Donnelley Fin. Corp. III | |||||||||||||||
260,000 | Sr. Disc. Nt. Ser. A-2† 6.875% due 1/15/2013 | Caa1/B | 239,200 | ||||||||||||
Radio One, Inc. | |||||||||||||||
400,000 | Sr. Sub. Nt. 6.375% due 2/15/2013 | B2/B | 366,000 | ||||||||||||
XM Satellite Radio, Inc. | |||||||||||||||
400,000 | Sr. Nt.† 9.75% due 5/1/2014 | Caa2/CCC | 366,000 | ||||||||||||
4,173,400 |
Principal Amount | Rating Moody's/ S&P* | Value | |||||||||||||
Metals and Mining — 1.4% | |||||||||||||||
Oregon Steel Mills, Inc. | |||||||||||||||
$ | 1,030,000 | 1st Mtg. Nt. 10.00% due 7/15/2009 | Ba3/NR | $ | 1,081,500 | ||||||||||
Natural Gas–Distributors — 1.0% | |||||||||||||||
Amerigas Partners LP | |||||||||||||||
400,000 | Sr. Nt. 7.125% due 5/20/2016 | B1/NR | 375,000 | ||||||||||||
Suburban Propane Partners LP | |||||||||||||||
400,000 | Sr. Nt. 6.875% due 12/15/2013 | B1/B– | 374,000 | ||||||||||||
749,000 | |||||||||||||||
Natural Gas–Pipelines — 5.5% | |||||||||||||||
Atlas Pipeline Partners | |||||||||||||||
200,000 | Sr. Nt.† 8.125% due 12/15/2015 | B1/B+ | 199,250 | ||||||||||||
Colorado Interstate Gas Co. | |||||||||||||||
800,000 | Sr. Nt. 6.80% due 11/15/2015 | NR/B+ | 771,076 | ||||||||||||
El Paso Natural Gas | |||||||||||||||
670,000 | Sr. Nt. Ser. A 7.625% due 8/1/2010 | Ba2/B+ | 681,725 | ||||||||||||
Holly Energy Partners LP | |||||||||||||||
410,000 | Sr. Nt. 6.25% due 3/1/2015 | Ba3/B+ | 375,150 | ||||||||||||
Kinder Morgan Finance Corp. | |||||||||||||||
500,000 | Sr. Nt. 5.70% due 1/5/2016 | Baa2/BBB | 434,136 | ||||||||||||
MarkWest Energy Partners LP | |||||||||||||||
600,000 | Sr. Nt.† 8.50% due 7/15/2016 | B2/B | 590,100 | ||||||||||||
Southern Natural Gas Co. | |||||||||||||||
623,000 | Nt. 7.35% due 2/15/2031 | Ba2/B+ | 597,763 | ||||||||||||
Williams Cos., Inc. | |||||||||||||||
600,000 | Sr. Nt. 7.75% due 6/15/2031 | Ba2/BB– | 591,000 | ||||||||||||
4,240,200 | |||||||||||||||
Non Sovereign — 1.3% | |||||||||||||||
Gazprom OAO | |||||||||||||||
900,000 | Nt.† 9.625% due 3/1/2013 | NR/BB+ | 1,031,625 | ||||||||||||
Noncaptive Consumer — 1.3% | |||||||||||||||
Dollar Financial Group, Inc. | |||||||||||||||
559,000 | Sr. Nt. 9.75% due 11/15/2011 | B3/B+ | 600,925 | ||||||||||||
Residential Capital Corp. | |||||||||||||||
400,000 | Sr. Nt. 6.375% due 6/30/2010 | Baa3/BBB– | 394,556 | ||||||||||||
995,481 | |||||||||||||||
Packaging — 2.1% | |||||||||||||||
Crown Americas | |||||||||||||||
800,000 | Sr. Nt.† 7.75% due 11/15/2015 | B1/B | 788,000 | ||||||||||||
Owens-Brockway Glass Container | |||||||||||||||
400,000 | Sr. Sec. Nt. 7.75% due 5/15/2011 | B1/BB– | 403,000 | ||||||||||||
424,000 | Sr. Sec. Nt. 8.875% due 2/15/2009 | B1/BB– | 436,720 | ||||||||||||
1,627,720 |
See notes to financial statements.
59
n The Guardian High Yield Bond Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Principal Amount | Rating Moody's/ S&P* | Value | |||||||||||||
Paper and Forest Products — 4.3% | |||||||||||||||
Abitibi-Consolidated, Inc. | |||||||||||||||
$ | 1,000,000 | Sr. Nt. 6.00% due 6/20/2013 | B1/B+ | $ | 810,000 | ||||||||||
Caraustar Inds., Inc. | |||||||||||||||
600,000 | Nt. 7.375% due 6/1/2009 | B2/B+ | 567,000 | ||||||||||||
Domtar, Inc. | |||||||||||||||
400,000 | Nt. 7.875% due 10/15/2011 | B1/B+ | 376,000 | ||||||||||||
Graphic Packaging Int'l., Inc. | |||||||||||||||
1,022,000 | Sr. Sub. Nt. 9.50% due 8/15/2013 | B3/B– | 1,011,780 | ||||||||||||
Jefferson Smurfit Corp. | |||||||||||||||
400,000 | Sr. Nt. 7.50% due 6/1/2013 | B2/CCC+ | 358,000 | ||||||||||||
Millar Western Forest | |||||||||||||||
298,000 | Sr. Nt. 7.75% due 11/15/2013 | B2/B– | 226,480 | ||||||||||||
3,349,260 | |||||||||||||||
Retailers — 1.0% | |||||||||||||||
Bon-Ton Dept.Stores, Inc. | |||||||||||||||
400,000 | Sr. Nt.† 10.25% due 3/15/2014 | B2/B– | 371,000 | ||||||||||||
Rent-A-Center | |||||||||||||||
400,000 | Sr. Sub. Nt. Ser. B 7.50% due 5/1/2010 | Ba3/BB– | 398,000 | ||||||||||||
769,000 | |||||||||||||||
Services — 0.8% | |||||||||||||||
Autonation, Inc. | |||||||||||||||
100,000 | Sr. Nt.† 7.00% due 4/15/2014 | Ba2/BB+ | 98,500 | ||||||||||||
50,000 | Sr. Nt.†(2) 7.045% due 4/15/2013 | Ba2/BB+ | 49,750 | ||||||||||||
Education Management LLC | |||||||||||||||
500,000 | Sr. Nt.† 8.75% due 6/1/2014 | B3/CCC+ | 495,000 | ||||||||||||
643,250 | |||||||||||||||
Supermarkets — 0.6% | |||||||||||||||
Delhaize America, Inc. | |||||||||||||||
400,000 | Debt. 9.00% due 4/15/2031 | Ba1/BB+ | 438,644 | ||||||||||||
Technology — 2.5% | |||||||||||||||
Activant Solutions, Inc. | |||||||||||||||
200,000 | Sr. Sub. Nt.† 9.50% due 5/1/2016 | Caa1/CCC+ | 193,500 | ||||||||||||
Iron Mountain, Inc. | |||||||||||||||
700,000 | Sr. Sub. Nt. 8.625% due 4/1/2013 | Caa1/B | 700,000 | ||||||||||||
Nortel Networks Ltd. | |||||||||||||||
200,000 | Sr. Nt.†(2) 9.73% due 7/15/2011 | B3/B– | 203,500 | ||||||||||||
200,000 | Sr. Nt.† 10.75% due 7/15/2016 | B3/B– | 203,500 | ||||||||||||
Solectron Global Fin. Ltd. | |||||||||||||||
400,000 | Sr. Sub. Nt.† 8.00% due 3/15/2016 | B3/B– | 394,000 |
Principal Amount | Rating Moody's/ S&P* | Value | |||||||||||||
Xerox Corp. | |||||||||||||||
$ | 240,000 | Sr. Nt. 6.40% due 3/15/2016 | Ba2/BB+ | $ | 226,500 | ||||||||||
1,921,000 | |||||||||||||||
Textile — 1.4% | |||||||||||||||
Oxford Inds., Inc. | |||||||||||||||
300,000 | Sr. Nt. 8.875% due 6/1/2011 | B1/B | 300,000 | ||||||||||||
Russell Corp. | |||||||||||||||
785,000 | Sr. Nt. 9.25% due 5/1/2010 | B2/B | 821,306 | ||||||||||||
1,121,306 | |||||||||||||||
Tobacco — 0.8% | |||||||||||||||
Reynolds American, Inc. | |||||||||||||||
600,000 | Sr. Sec. Nt.† 7.25% due 6/1/2013 | Ba2/BB | 586,500 | ||||||||||||
Transportation — 1.1% | |||||||||||||||
Avis Budget Car Rental LLC | |||||||||||||||
100,000 | Sr. Nt.†(2) 7.576% due 5/15/2014 | Ba3/BB– | 99,750 | ||||||||||||
100,000 | Sr. Nt.† 7.625% due 5/15/2014 | Ba3/BB– | 97,000 | ||||||||||||
100,000 | Sr. Nt.† 7.75% due 5/15/2016 | Ba3/BB– | 96,250 | ||||||||||||
OMI Corp. | |||||||||||||||
600,000 | Sr. Nt. 7.625% due 12/1/2013 | B1/B+ | 598,500 | ||||||||||||
891,500 | |||||||||||||||
Wireless Communications — 4.3% | |||||||||||||||
Centennial Cell Comm. Corp. | |||||||||||||||
300,000 | Sr. Nt. 10.125% due 6/15/2013 | B3/CCC | 315,750 | ||||||||||||
Inmarsat Fin. PLC | |||||||||||||||
310,000 | Sr. Nt. 7.625% due 6/30/2012 | Ba3/B+ | 317,750 | ||||||||||||
Intelsat Bermuda Ltd. | |||||||||||||||
100,000 | Sr. Nt.† 9.25% due 6/15/2016 | B2/B+ | 103,250 | ||||||||||||
Nextel Comm., Inc. | |||||||||||||||
1,350,000 | Sr. Nt. Ser. D 7.375% due 8/1/2015 | Baa2/A– | 1,374,135 | ||||||||||||
Nextel Partners, Inc. | |||||||||||||||
350,000 | Sr. Nt. 8.125% due 7/1/2011 | Ba3/A– | 366,188 | ||||||||||||
Nordic Telephone Co. Hldgs. | |||||||||||||||
200,000 | Sr. Nt.† 8.875% due 5/1/2016 | B2/B | 205,500 | ||||||||||||
Panamsat Corp. | |||||||||||||||
100,000 | Sr. Nt.† 9.00% due 6/15/2016 | B2/B | 101,500 | ||||||||||||
Rogers Wireless, Inc. | |||||||||||||||
580,000 | Sr. Sub. Nt. 8.00% due 12/15/2012 | Ba3/B+ | 593,050 | ||||||||||||
3,377,123 | |||||||||||||||
Wireline Communications — 3.4% | |||||||||||||||
Citizens Comm. Co. | |||||||||||||||
400,000 | Sr. Nt. 9.25% due 5/15/2011 | Ba3/BB+ | 430,000 | ||||||||||||
Qwest Corp. | |||||||||||||||
500,000 | Sr. Nt. 7.625% due 6/15/2015 | Ba3/BB | 493,750 |
See notes to financial statements.
60
n The Guardian High Yield Bond Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Principal Amount | Rating Moody's/ S&P* | Value | |||||||||||||
$ | 885,000 | Sr. Nt. 7.875% due 9/1/2011 | Ba3/BB | $ | 896,063 | ||||||||||
U.S. West Comm. | |||||||||||||||
480,000 | Debt. 8.875% due 6/1/2031 | Ba3/BB | 500,400 | ||||||||||||
Windstream Corp. | |||||||||||||||
300,000 | Sr. Nt.† 8.625% due 8/1/2016 | Ba3/BB– | 306,750 | ||||||||||||
2,626,963 | |||||||||||||||
Total Corporate Bonds (Cost $73,940,221) | 73,120,759 | ||||||||||||||
Indexed Securities — 2.4% | |||||||||||||||
Dow Jones Credit Default Index | |||||||||||||||
$ | 958,000 | Ser. HY-6-T2† 7.375% due 6/29/2011 | Ba3/NR | $ | 937,643 | ||||||||||
958,000 | Ser. HY-6-T3† 8.125% due 6/29/2011 | B3/NR | 938,840 | ||||||||||||
Total Indexed Securities (Cost $1,905,708) | 1,876,483 |
Shares | Value | ||||||||||
Warrant — 0.0% | |||||||||||
XM Satellite Radio, Inc. | |||||||||||
330 | exp. 3/15/2010 (Cost $66,660) | $ | 2,475 | ||||||||
Principal Amount | Value | ||||||||||
Repurchase Agreement — 5.0% | |||||||||||
$ | 3,848,000 | State Street Bank and Trust Co. | |||||||||
repurchase agreement, | |||||||||||
dated 6/30/2006, maturity | |||||||||||
value $3,849,587 at | |||||||||||
4.95%, due 7/3/2006 (3) | |||||||||||
(Cost $3,848,000) | $ | 3,848,000 | |||||||||
Total Investments — 101.4% (Cost $79,760,589) | 78,847,717 | ||||||||||
Liabilities in Excess of Cash, Receivables and Other Assets — (1.4)% | (1,100,455 | ) | |||||||||
Net Assets — 100% | $ | 77,747,262 |
* Unaudited.
† Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to certain qualified buyers. At 6/30/2006, the aggregate market value of these securities amounted to $13,759,814 representing 17.7% of net assets which have been deemed liquid pursuant to the Fund's liquidity procedures approved by the Board of Trustees.
(1) Step-up bond.
(2) Floating rate note. The rate shown is the rate in effect at 6/30/2006.
(3) The repurchase agreement is fully collateralized by $3,925,000 in U.S. Government Agency, 5.50%, due 5/29/2009, with a value of $3,925,000.
See notes to financial statements.
61
n The Guardian Tax-Exempt Fund
Schedule of Investments
June 30, 2006 (Unaudited)
Principal Amount | Rating Moody's/ S&P* | Value | |||||||||||||
Municipal Bonds — 98.7% | |||||||||||||||
Alabama — 1.2% | |||||||||||||||
Alabama 21st Century Auth. Tobacco Settlement Rev., | |||||||||||||||
$ | 1,000,000 | 5.25% due 12/1/2009 | Baa1/A– | $ | 1,037,750 | ||||||||||
160,000 | 5.75% due 12/1/2019 | Baa1/A– | 168,936 | ||||||||||||
1,206,686 | |||||||||||||||
Alaska — 1.4% | |||||||||||||||
1,300,000 | Northern Tobacco Securitization Corp., 5.80% due 6/1/2012 | Baa3/BBB | 1,366,456 | ||||||||||||
Arizona — 4.7% | |||||||||||||||
1,500,000 | Mesa Arizona Utility Sys. Rev., 5.00% due 7/1/2027 | Aaa/AAA | 1,546,380 | ||||||||||||
1,000,000 | Phoenix, AZ G.O. Ser. B, 5.375% due 7/1/2020 | Aa1/AA+ | 1,071,450 | ||||||||||||
Salt River Proj., AZ Agric. Impt. & Pwr. Dist. Rev. Ser. A, | |||||||||||||||
1,500,000 | 5.00% due 1/1/2028 | Aa1/AA | 1,546,860 | ||||||||||||
500,000 | 5.00% due 1/1/2029 | Aa1/AA | 514,845 | ||||||||||||
4,679,535 | |||||||||||||||
Arkansas — 1.0% | |||||||||||||||
1,000,000 | Arkansas St. G.O. Fed. Hwy. Grant Ser. A, 5.50% due 8/1/2011 | Aa2/AA | 1,044,360 | ||||||||||||
California — 8.8% | |||||||||||||||
1,305,000 | California Cnty. Tobacco Securitization Agy., 4.75% due 6/1/2019 | Baa3/NR | 1,310,246 | ||||||||||||
California St. Var. Purp. G.O., | |||||||||||||||
1,500,000 | 5.00% due 3/1/2028 | A1/A+ | 1,526,340 | ||||||||||||
2,000,000 | 5.25% due 11/1/2027 | A1/A+ | 2,074,840 | ||||||||||||
1,500,000 | Golden St. Tobacco Securitization Corp. Rev. Ser. A, 5.00% due 6/1/2035 | Aaa/AAA | 1,519,290 | ||||||||||||
750,000 | Golden St. Tobacco Securitization Corp. Ser. 2003-A-1, 5.00% due 6/1/2012 | Baa3/BBB | 777,083 | ||||||||||||
1,500,000 | Tobacco Securitization Auth. Northern California Rev. Ser. A-1, 5.375% due 6/1/2038 | Baa3/BBB | 1,519,500 | ||||||||||||
8,727,299 | |||||||||||||||
Colorado — 2.6% | |||||||||||||||
1,000,000 | Commerce City Colorado Sales & Use Tax Rev., 5.00% due 8/1/2025 | Aaa/AAA | 1,040,100 | ||||||||||||
1,500,000 | North Metro Fire Rescue Dist. Colorado G.O., 5.00% due 12/1/2027 | NR/AAA | 1,546,590 | ||||||||||||
2,586,690 | |||||||||||||||
Connecticut — 1.6% | |||||||||||||||
1,500,000 | Greater New Haven Wtr. Pollution Ctrl. Auth. Ser. A, 5.00% due 11/15/2030 | Aaa/AAA | 1,543,980 | ||||||||||||
Florida — 1.6% | |||||||||||||||
1,500,000 | Florida St. Brd. of Ed. Lottery Rev. Ser. C, 5.25% due 7/1/2016 | Aaa/AAA | 1,578,420 |
Principal Amount | Rating Moody's/ S&P* | Value | |||||||||||||
Georgia — 1.1% | |||||||||||||||
$ | 1,000,000 | Fulton Cnty., GA Dev. Auth. Rev. Georgia Tech. Foundation Ser. A, 5.125% due 11/1/2021 | Aa1/AA+ | $ | 1,045,080 | ||||||||||
Idaho — 1.0% | |||||||||||||||
1,000,000 | Ada & Canyon Cntys., ID Jt. Sch. Dist. G.O., 4.00% due 8/15/2009 | Aa2/AA– | 1,004,320 | ||||||||||||
Indiana — 2.1% | |||||||||||||||
1,000,000 | Indiana Hlth. Fac. Fin. Auth. Rev. Ser. F, 5.50% due 11/15/2008 | Aa2/AA | 1,036,580 | ||||||||||||
1,030,000 | Indiania St. Hsg. & Cmnty. Dev. Auth. Rev. AMT Mtg. Ser. C-2, 5.00% due 7/1/2031 | Aaa/NR | 1,023,449 | ||||||||||||
2,060,029 | |||||||||||||||
Kansas — 1.4% | |||||||||||||||
1,300,000 | Kansas St. Dev. Fin. Auth. Lease, 5.125% due 4/1/2022 | Aaa/AAA | 1,361,152 | ||||||||||||
Kentucky — 1.3% | |||||||||||||||
1,250,000 | Kentucky St. Ppty. & Bldgs. Comm. Rev., 5.00% due 8/1/2025 | Aaa/AAA | 1,295,138 | ||||||||||||
Maryland — 1.7% | |||||||||||||||
1,500,000 | Maryland St. Economic Dev. Corp. Student Hsg. Rev. Univ. MD College Park Proj., 6.50% due 6/1/2013 (1) | Baa3/NR | 1,708,665 | ||||||||||||
Massachusetts — 9.4% | |||||||||||||||
1,500,000 | Massachusetts St. College Bldg. Auth. Proj. Rev. Ser A, 5.00% due 5/1/2026 | Aaa/AAA | 1,549,275 | ||||||||||||
2,000,000 | Massachusetts St. G.O. Cons. Ln. Ser. C, 5.00% due 9/1/2025 | Aa2/AA | 2,063,620 | ||||||||||||
1,500,000 | Massachusetts St. Hsg. Fin. Agy. Ser. B, 5.00% due 6/1/2030 | Aa3/AA– | 1,514,160 | ||||||||||||
1,550,000 | Massachusetts St. Hsg. Fin. Agy. Rev. AMT Ser. H, 5.00% due 12/1/2028 | Aa3/AA– | 1,533,446 | ||||||||||||
1,000,000 | Massachusetts St. Wtr. Resources Auth. Rev. Ser. A, 5.00% due 8/1/2029 | Aaa/AAA | 1,026,680 | ||||||||||||
1,600,000 | Massachusetts St. Wtr. Resources Auth. Rev. Sub-Ser. C, 4.01% due 8/1/2020 (2) | Aaa/AA | 1,600,000 | ||||||||||||
9,287,181 | |||||||||||||||
Michigan — 1.6% | |||||||||||||||
1,500,000 | Michigan St. Hosp. Fin. Auth. Rev. Ref. Henry Ford Health Sys. Ser. A, 5.25% due 11/15/2032 | A1/A | 1,540,920 |
See notes to financial statements.
62
n The Guardian Tax-Exempt Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Principal Amount | Rating Moody's/ S&P* | Value | |||||||||||||
Minnesota — 3.1% | |||||||||||||||
$ | 1,500,000 | Minnesota St. Hsg. Fin. Agy. Rev. AMT Res. Hsg. Fin. Ser. I, 5.05% due 7/1/2026 | Aa1/AA+ | $ | 1,504,815 | ||||||||||
1,500,000 | Rochester, MN Waste Wtr. Ser. A G.O., 5.00% due 2/1/2026 | Aaa/AAA | 1,553,880 | ||||||||||||
3,058,695 | |||||||||||||||
Missouri — 1.1% | |||||||||||||||
1,000,000 | Camdenton, MO Reorganized Sch. Dist. Ref. & Impt. G.O., 5.25% due 3/1/2024 | Aaa/AAA | 1,052,470 | ||||||||||||
Nebraska — 1.5% | |||||||||||||||
1,500,000 | Nebraska Pub. Pwr. Dist. Rev. Gen. Ser. C, 5.00% due 1/1/2030 | Aaa/AAA | 1,536,420 | ||||||||||||
New Hampshire — 1.5% | |||||||||||||||
1,500,000 | New Hampshire St. Hsg. Fin. Auth. Rev. AMT Mtg. Acquisition Ser. E, 5.00% due 7/1/2030 | Aa2/NR | 1,497,900 | ||||||||||||
New Jersey — 1.8% | |||||||||||||||
1,735,000 | Tobacco Settlement Fin. Corp., 5.50% due 6/1/2012 | Baa3/BBB | 1,804,834 | ||||||||||||
New York — 14.7% | |||||||||||||||
1,500,000 | Long Island Pwr. Auth. NY Elec. Sys. Rev. Gen. Ser. A, 5.00% due 12/1/2026 | Aaa/AAA | 1,541,220 | ||||||||||||
1,255,000 | New York City Indl. Dev. Agy., 5.25% due 3/1/2018 | Aaa/AAA | 1,324,012 | ||||||||||||
2,000,000 | New York St. Environmental Facs., 5.00% due 6/15/2025 | Aaa/AAA | 2,071,400 | ||||||||||||
1,500,000 | New York St. Urban Dev. Corp., 5.25% due 1/1/2009 (3) | NR/AA– | 1,543,590 | ||||||||||||
2,000,000 | New York, NY City Tran. Fin. Auth. Fac. Ref. Sub. Ser. A-2, 5.00% due 11/1/2008 | Aa2/AAA | 2,051,800 | ||||||||||||
New York, NY G.O. | |||||||||||||||
1,500,000 | Ser. G-MBIA 5.00% due 8/1/2023 | Aaa/AAA | 1,550,670 | ||||||||||||
1,500,000 | Ser. J Sub. Ser. J-1, 5.00% due 6/1/2031 | A1/AA– | 1,522,170 | ||||||||||||
3,000,000 | Tompkins County, NY Indl. Dev. Agy. Rev. Civic Fac. Ithaca Coll. Proj., 3.94% due 7/1/2034 (2) | Aaa/AAA | 3,000,000 | ||||||||||||
14,604,862 | |||||||||||||||
North Carolina — 7.1% | |||||||||||||||
1,345,000 | Appalachian St. Univ. NC Rev. Ref., 5.00% due 7/15/2025 | Aaa/NR | 1,384,355 | ||||||||||||
1,500,000 | North Carolina St. Ref. G.O., 5.00% due 3/1/2010 | Aa1/AAA | 1,559,745 | ||||||||||||
2,000,000 | North Carolina St. Univ., NC Raleigh Rev. Gen. Ser. A, 5.00% due 10/1/2024 | Aaa/AAA | 2,070,160 | ||||||||||||
1,975,000 | Wilmington, NC Wtr. & Swr. Sys. Rev. Ref. 5.00% due 6/1/2030 | Aaa/AAA | 2,019,062 | ||||||||||||
7,033,322 |
Principal Amount | Rating Moody's/ S&P* | Value | |||||||||||||
Ohio — 3.2% | |||||||||||||||
$ | 2,000,000 | Ohio St. Bldg. Auth. Ref. St. Facs. Hwy., 5.00% due 10/1/2010 | Aaa/AAA | $ | 2,084,220 | ||||||||||
1,050,000 | Univ. of Cincinnati, OH Gen. Rcpts. Ser. A, 5.50% due 6/1/2011 | Aaa/AAA | 1,121,851 | ||||||||||||
3,206,071 | |||||||||||||||
Oregon — 3.1% | |||||||||||||||
1,500,000 | Oregon St. Dept. Trans. Hwy. Usertax Rev. Ser. A, 5.00% due 11/15/2031 | Aa2/AA+ | 1,534,005 | ||||||||||||
1,500,000 | Oregon St. Hsg. & Cmnty. Svcs. Dept. Mtg. Rev. AMT Single Family Mtg. Ser. E, 5.00% due 1/1/2025 | Aa2/NR | 1,507,020 | ||||||||||||
3,041,025 | |||||||||||||||
Pennsylvania — 1.6% | |||||||||||||||
1,500,000 | Philadelphia PA School Dist. G.O. Ser. B, 5.625% due 8/1/2012 (1) | Aaa/AAA | 1,629,315 | ||||||||||||
Puerto Rico — 6.3% | |||||||||||||||
1,500,000 | Puerto Rico Comwlth. Pub. Impt. G.O. Ser. A, 5.00% due 7/1/2029 | Aaa/AAA | 1,536,690 | ||||||||||||
2,000,000 | Puerto Rico Comwlth. Hwy. & Transitional Auth. Rev. Ser. K, 5.00% due 7/1/2019 | Baa3/BBB+ | 2,042,080 | ||||||||||||
1,000,000 | Puerto Rico Muni. Fin. Agy. Ser. A, 5.25% due 8/1/2021 | Aaa/AAA | 1,057,360 | ||||||||||||
1,500,000 | Puerto Rico Pub. Bldgs. Auth. Rev. Gov't. Facs. Ser. I, 5.50% due 7/1/2020 | Baa3/BBB | 1,589,370 | ||||||||||||
6,225,500 | |||||||||||||||
South Carolina — 3.9% | |||||||||||||||
1,250,000 | Charleston, SC Wtrwks. & Swr. Rev., 5.25% due 1/1/2018 | Aa3/AA | 1,320,350 | ||||||||||||
1,000,000 | Mount Pleasant, SC Wtr. & Swr. Rev. Ref. & Impt., 5.25% due 12/1/2019 | Aaa/AAA | 1,058,370 | ||||||||||||
1,500,000 | South Carolina Hsg. Fin. & Dev. Auth. Mtg. Rev. AMT Ser. A-2, 5.05% due 7/1/2027 | Aaa/NR | 1,502,670 | ||||||||||||
3,881,390 | |||||||||||||||
Tennessee — 1.6% | |||||||||||||||
1,500,000 | Memphis Tennesee G.O. Gen. Impt. Ser. A, 5.00% due 11/1/2018 | Aaa/AAA | 1,570,440 | ||||||||||||
Virginia — 4.4% | |||||||||||||||
1,180,000 | Newport News, VA Gen. Impt. Ser. D, 5.00% due 12/1/2022 | Aa2/AA | 1,230,917 | ||||||||||||
1,500,000 | Tobacco Settlement Fin. Corp. VA Asset Bkd., 5.50% due 6/1/2026 | Baa3/BBB | 1,534,875 |
See notes to financial statements.
63
n The Guardian Tax-Exempt Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Principal Amount | Rating Moody's/ S&P* | Value | |||||||||||||
$ | 1,500,000 | Upper Occoquan Swr. Auth. VA Reg. Rev. Ref., 5.00% due 7/1/2023 | Aaa/AAA | $ | 1,554,930 | ||||||||||
4,320,722 | |||||||||||||||
Washington — 1.3% | |||||||||||||||
1,250,000 | Snohomish Cnty., WA G.O., 5.375% due 12/1/2019 | Aaa/AAA | 1,321,525 | ||||||||||||
Total Municipal Bonds (Cost $98,176,204) | 97,820,402 |
Total Investments — 98.7% (Cost $98,176,204) | 97,820,402 | ||||||
Cash, Receivables, and Other Assets Less Liabilities — 1.3% | 1,279,462 | ||||||
Net Assets — 100% | $ | 99,099,864 |
* Unaudited.
(1) Pre-refunded.
(2) Variable rate demand notes.
(3) The due date shown is the mandatory put date.
Glossary of Terms:
G.O. — General Obligation.
NR — Not Rated.
AMT — Alternative Minimum Tax.
See notes to financial statements.
64
n The Guardian Cash Management Fund
Schedule of Investments
June 30, 2006 (Unaudited)
Principal Amount | Value | ||||||||||
Corporate Bonds — 7.3% | |||||||||||
Capital Markets — 1.5% | |||||||||||
$ | 1,200,000 | Goldman Sachs Group LP 7.20% due 3/1/2007† | $ | 1,215,688 | |||||||
5,000,000 | J.P. Morgan Chase 6.875% due 1/15/2007 | 5,041,892 | |||||||||
6,257,580 | |||||||||||
Computers and Peripherals — 1.1% | |||||||||||
4,669,000 | IBM Corp. 4.875% due 10/1/2006 | 4,668,156 | |||||||||
Conglomerates — 1.2% | |||||||||||
5,000,000 | General Electric Capital Corp. 2.80% due 1/15/2007 | 4,939,383 | |||||||||
Diversified Financial Services — 0.9% | |||||||||||
3,760,000 | Citigroup, Inc. 5.50% due 8/9/2006 | 3,762,604 | |||||||||
Financial — 0.3% | |||||||||||
1,462,000 | Lehman Brothers Hldgs., Inc. 8.50% due 5/1/2007 | 1,500,256 | |||||||||
Oil, Gas and Consumable Fuels — 2.3% | |||||||||||
10,000,000 | Conoco Fdg. Co. 5.45% due 10/15/2006 | 10,015,530 | |||||||||
Total Corporate Bonds (Cost $31,143,509) | 31,143,509 | ||||||||||
Certificates of Deposit — 3.5% | |||||||||||
$ | 100,000 | Societe Generale NA 4.04% due 7/27/2006 | $ | 99,957 | |||||||
10,000,000 | Washington Mutual Bank 5.28% due 8/7/2006 | 10,001,147 | |||||||||
5,000,000 | Wells Fargo Bank NA 5.207% due 7/20/2006 (1) | 5,000,000 | |||||||||
Total Certificates of Deposit (Cost $15,101,104) | 15,101,104 | ||||||||||
U.S. Government Securities — 2.3% | |||||||||||
U.S. Government Agency Securities — 2.3% | |||||||||||
$ | 5,000,000 | FHLB 5.00% due 2/9/2007 | $ | 5,000,000 | |||||||
5,000,000 | FHLMC 5.50% due 7/9/2007 | 5,000,000 | |||||||||
Total U.S. Government Securities (Cost $10,000,000) | 10,000,000 | ||||||||||
Commercial Paper — 67.3% | |||||||||||
ASSET BACKED — 9.3% | |||||||||||
$ | 10,000,000 | Barton Capital LLC 5.26% due 8/9/2006† | $ | 9,943,017 | |||||||
10,000,000 | Govco, Inc. 4.97% due 7/19/2006† | 9,975,150 | |||||||||
10,000,000 | Sheffield Receivables Corp. 5.21% due 7/18/2006† | 9,975,397 | |||||||||
10,000,000 | Surrey Funding Corp. 5.22% due 7/24/2006† | 9,966,650 | |||||||||
TOTAL ASSET BACKED | 39,860,214 |
Principal Amount | Value | ||||||||||
FINANCIAL — 16.3% | |||||||||||
Finance Companies — 2.3% | |||||||||||
$ | 10,000,000 | Danske Corp. 5.05% due 7/18/2006 | $ | 9,976,152 | |||||||
Financial–Banks — 9.3% | |||||||||||
10,000,000 | Abbey National NA LLC 4.98% due 7/3/2006 | 9,997,233 | |||||||||
10,000,000 | BNP Paribas Finance, Inc. 5.302% due 8/28/2006 | 9,914,579 | |||||||||
10,000,000 | HVB U.S. Finance 5.18% due 7/19/2006† | 9,974,100 | |||||||||
10,000,000 | UBS Finance LLC 5.275% due 7/31/2006 | 9,956,042 | |||||||||
39,841,954 | |||||||||||
Financial–Other — 4.7% | |||||||||||
10,000,000 | American General Fin. Corp. 5.27% due 8/14/2006 | 9,935,589 | |||||||||
10,000,000 | Countrywide Fin. Corp. 5.25% due 7/25/2006 | 9,965,000 | |||||||||
19,900,589 | |||||||||||
TOTAL FINANCIAL | 69,718,695 | ||||||||||
INDUSTRIAL — 41.7% | |||||||||||
Aerospace and Defense — 2.1% | |||||||||||
$ | 9,000,000 | United Technologies Corp. 5.29% due 7/3/2006 | $ | 8,997,355 | |||||||
Agricultural — 2.3% | |||||||||||
10,000,000 | Cargill Global Fdg. 5.27% due 7/13/2006 | 9,982,433 | |||||||||
Automotive — 7.0% | |||||||||||
10,000,000 | American Honda Fin. Corp. 5.19% due 7/25/2006 | 9,965,400 | |||||||||
10,000,000 | BMW U.S. Capital LLC 5.15% due 7/17/2006 | 9,977,111 | |||||||||
10,000,000 | Toyota Motor Credit Corp. 5.23% due 8/21/2006 | 9,925,909 | |||||||||
29,868,420 | |||||||||||
Electronic Equipment and Instruments — 2.3% | |||||||||||
10,000,000 | Hitachi America Capital Ltd. 5.27% due 7/11/2006† | 9,985,361 | |||||||||
Food and Beverages— 9.3% | |||||||||||
10,000,000 | Coca-Cola Enterprises, Inc. 5.19% due 7/21/2006 | 9,971,166 | |||||||||
10,000,000 | Concentrate Mfg. Co. 5.23% due 7/19/2006 | 9,973,850 | |||||||||
10,000,000 | Hershey Foods Corp. 5.21% due 8/7/2006 | 9,946,453 | |||||||||
10,000,000 | Unilever Capital Corp. 5.26% due 7/3/2006 | 9,997,078 | |||||||||
39,888,547 | |||||||||||
Manufacturing — 2.3% | |||||||||||
10,000,000 | Danaher Corp. 5.06% due 7/11/2006 | 9,985,945 | |||||||||
Media — 2.3% | |||||||||||
10,000,000 | McGraw-Hill Cos., Inc. 5.24% due 7/24/2006 | 9,966,522 |
See notes to financial statements.
65
n The Guardian Cash Management Fund
Schedule of Investments (Continued)
June 30, 2006 (Unaudited)
Principal Amount | Value | ||||||||||
Metals and Mining — 2.5% | |||||||||||
$ | 10,500,000 | Alcoa, Inc. 5.27% due 8/4/2006 | $ | 10,447,739 | |||||||
Oil and Gas Services — 2.3% | |||||||||||
10,000,000 | Koch Inds., Inc. 5.27% due 7/28/2006† | 9,960,475 | |||||||||
Personal Products — 2.3% | |||||||||||
10,000,000 | L'Oreal USA, Inc. 5.21% due 7/20/2006 | 9,972,503 | |||||||||
Pharmaceuticals — 2.3% | |||||||||||
10,000,000 | Alcon Capital Corp. 5.00% due 7/3/2006 | 9,997,222 | |||||||||
Utilities–Electric and Water — 4.7% | |||||||||||
10,000,000 | National Rural Utilities Coop. Fin. 5.25% due 7/26/2006 | 9,963,542 | |||||||||
10,000,000 | Southern Co. 5.18% due 7/13/2006 | 9,982,733 | |||||||||
19,946,275 | |||||||||||
TOTAL INDUSTRIAL | 178,998,797 | ||||||||||
Total Commercial Paper (Cost $288,577,706) | 288,577,706 | ||||||||||
Taxable Municipal Securities (1) — 19.1% | |||||||||||
California — 3.6% | |||||||||||
$ | 7,465,000 | California Housing Fin. Agency 5.43% due 7/5/2006 | $ | 7,465,000 | |||||||
8,100,000 | Sacramento Cnty., CA 5.43% due 7/5/2006 | 8,100,000 | |||||||||
15,565,000 | |||||||||||
Colorado — 2.7% | |||||||||||
Colorado Housing & Fin. Auth. | |||||||||||
5,650,000 | 5.43% due 7/5/2006 | 5,650,000 | |||||||||
5,915,000 | 5.43% due 7/5/2006 | 5,915,000 | |||||||||
11,565,000 | |||||||||||
Connecticut — 1.9% | |||||||||||
8,000,000 | Connecticut St. Housing & Fin. Auth. 5.30% due 7/6/2006 | 8,000,000 | |||||||||
Michigan — 0.9% | |||||||||||
3,950,000 | Michigan St. Housing Dev. Auth. 5.43% due 7/5/2006 | 3,950,000 | |||||||||
New York — 5.4% | |||||||||||
15,955,000 | New York City Trans. 5.43% due 7/5/2006 | 15,955,000 | |||||||||
7,385,000 | New York St. Dormitory Auth. Rev. 5.37% due 7/6/2006 | 7,385,000 | |||||||||
23,340,000 | |||||||||||
Utah — 3.9% | |||||||||||
1,010,000 | Utah Housing Corp. Single Family Ser. C-3 Cl. I 5.43% due 7/5/2006 | 1,010,000 | |||||||||
2,410,000 | Utah Housing Corp. Single Family Ser. D-2 Cl. I 5.43% due 7/5/2006 | 2,410,000 | |||||||||
4,530,000 | Utah Housing Corp. Single Family Ser. D-3 Cl. I 5.43% due 7/5/2006 | 4,530,000 |
Principal Amount | Value | ||||||||||
$ | 2,720,000 | Utah Housing Corp. Single Family Ser. E-2 Cl. I 5.43% due 7/5/2006 | $ | 2,720,000 | |||||||
2,365,000 | Utah St. Housing Fin. Agency Ser. F-3 Cl. I 5.43% due 7/5/2006 | 2,365,000 | |||||||||
3,595,000 | Utah St. Housing Fin. Agency Ser. G-3 Cl. I 5.43% due 7/5/2006 | 3,595,000 | |||||||||
16,630,000 | |||||||||||
Washington — 0.7% | |||||||||||
2,795,000 | Seattle, WA 4.24% due 8/30/2006 (2) | 2,795,000 | |||||||||
Total Taxable Municipal Securities (Cost $81,845,000) | 81,845,000 | ||||||||||
Repurchase Agreement — 0.2% | |||||||||||
$ | 637,000 | State Street Bank and Trust Co. | |||||||||
repurchase agreement, | |||||||||||
dated 6/30/2006, maturity | |||||||||||
value $637,263 at | |||||||||||
4.95%, due 7/3/2006 (3) | |||||||||||
(Cost $637,000) | $ | 637,000 | |||||||||
Total Investments — 99.7% (Cost $427,304,319) | 427,304,319 | ||||||||||
Cash, Receivables, and Other Assets Less Liabilities — 0.3% | 1,490,853 | ||||||||||
Net Assets — 100% | $ | 428,795,172 |
† Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to certain qualified buyers. At 6/30/2006, the aggregate market value of these securities amounted to $70,995,838 representing 16.6% of net assets which have been deemed liquid pursuant to the Fund's liquidity procedures approved by the Board of Trustees.
(1) Floating rate note. The rate shown is the rate in effect at 6/30/2006. The due date shown is the next reset date.
(2) Floating rate note. The rate shown is the rate in effect at 6/30/2006. The due date shown is the mandatory put date.
(3) The repurchase agreement is fully collateralized by $650,000 in U.S. Government Agency, 5.50%, due 5/29/2009, with a value of $650,000.
See notes to financial statements.
66
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67
n The Park Avenue Portfolio
Statements of Assets and Liabilities
June 30, 2006 (Unaudited)
The Guardian Park Avenue Fund | The Guardian UBS Large Cap Value Fund | The Guardian Park Avenue Small Cap Fund | The Guardian UBS Small Cap Value Fund | The Guardian Asset Allocation Fund | The Guardian S&P 500 Index Fund | The Guardian Baillie Gifford International Growth Fund | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||
Investments, at identified cost (includes majority-owned subsidiary of $120,213,074 for GAAF) | $ | 762,286,423 | $ | 69,285,168 | $ | 152,915,196 | $ | 41,284,642 | $ | 129,363,937 | $ | 159,664,929 | $ | 50,054,278 | |||||||||||||||||
Investments, at market — Note 1 (includes majority- owned subsidiary of $120,732,285 for GAAF) | 807,016,506 | 92,754,738 | 168,621,277 | 44,870,072 | 130,062,831 | 177,034,021 | 70,811,501 | ||||||||||||||||||||||||
Cash | 159 | 950 | 809 | 927 | 66 | 249,254 | 279 | ||||||||||||||||||||||||
Foreign currency (cost $33,544 GBGIF and $1,234,280 GBGEMF, respectively) | — | — | — | — | — | — | 33,997 | ||||||||||||||||||||||||
Receivable for securities sold | 9,075,634 | 68,198 | 3,022,899 | 1,311,839 | — | — | — | ||||||||||||||||||||||||
Receivable for fund shares sold | 2,124,412 | 2,317 | 165,835 | 2,408 | 75,968 | 26,515 | 10,722 | ||||||||||||||||||||||||
Dividends receivable | 907,453 | 85,128 | 146,841 | 28,797 | 6,222 | 198,886 | 56,320 | ||||||||||||||||||||||||
Interest receivable | 489 | 99 | 118 | 123 | 299 | 189 | 21 | ||||||||||||||||||||||||
Receivable for variation margin — Note 1 | — | — | — | — | 52,800 | — | — | ||||||||||||||||||||||||
Dividend reclaim receivable | — | — | — | — | — | — | 28,983 | ||||||||||||||||||||||||
Other assets | 15,800 | 1,455 | 3,304 | 829 | 2,261 | 3,556 | 14,039 | ||||||||||||||||||||||||
Total Assets | 819,140,453 | 92,912,885 | 171,961,083 | 46,214,995 | 130,200,447 | 177,512,421 | 70,955,862 | ||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||||||||
Payable for securities purchased | 8,687,491 | 61,818 | — | 1,033,665 | — | — | — | ||||||||||||||||||||||||
Accrued expenses | 147,074 | 15,466 | 17,144 | 13,575 | 21,758 | 18,607 | 28,223 | ||||||||||||||||||||||||
Payable for fund shares redeemed | — | 776 | 368,211 | 625 | 121,548 | 2,961 | 74,512 | ||||||||||||||||||||||||
Payable for variation margin — Note 1 | — | — | — | — | — | 4,000 | — | ||||||||||||||||||||||||
Accrued foreign capital gains tax | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Distributions payable | — | — | 915 | — | — | — | — | ||||||||||||||||||||||||
Payable for forward mortgage securities purchased — Note 6 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | — | — | — | — | 119 | ||||||||||||||||||||||||
Due to GIS | 502,423 | 114,343 | 156,206 | 61,900 | 25,808 | 89,829 | 26,098 | ||||||||||||||||||||||||
Total Liabilities | 9,336,988 | 192,403 | 542,476 | 1,109,765 | 169,114 | 115,397 | 128,952 | ||||||||||||||||||||||||
Net Assets | $ | 809,803,465 | $ | 92,720,482 | $ | 171,418,607 | $ | 45,105,230 | $ | 130,031,333 | $ | 177,397,024 | $ | 70,826,910 | |||||||||||||||||
COMPONENTS OF NET ASSETS | |||||||||||||||||||||||||||||||
Shares of beneficial interest, at par | $ | 249,168 | $ | 69,809 | $ | 103,338 | $ | 38,764 | $ | 108,218 | $ | 203,593 | $ | 43,828 | |||||||||||||||||
Additional paid-in capital | 1,298,261,873 | 67,461,302 | 149,974,699 | 38,518,061 | 179,877,754 | 254,207,227 | 80,065,856 | ||||||||||||||||||||||||
Undistributed/(distribution in excess of) net investment income/(accumulated net investment loss) | 365,191 | (40,685 | ) | (368,047 | ) | (199,993 | ) | 452,445 | 296,794 | (78,614 | ) | ||||||||||||||||||||
Accumulated net realized gain/(loss) on investments and foreign currency related transactions | (533,802,850 | ) | 1,760,486 | 6,002,536 | 3,162,968 | (51,429,047 | ) | (94,655,157 | ) | (29,962,131 | ) | ||||||||||||||||||||
Net unrealized appreciation/(depreciation) of investments and foreign currency related transactions | 44,730,083 | 23,469,570 | 15,706,081 | 3,585,430 | 1,021,963 | 17,344,567 | 20,757,971 | ||||||||||||||||||||||||
Net Assets | $ | 809,803,465 | $ | 92,720,482 | $ | 171,418,607 | $ | 45,105,230 | $ | 130,031,333 | $ | 177,397,024 | $ | 70,826,910 | |||||||||||||||||
NET ASSETS | |||||||||||||||||||||||||||||||
Class A | $ | 747,056,943 | $ | 26,934,288 | $ | 139,274,359 | $ | 12,882,075 | $ | 93,467,158 | $ | 141,991,910 | $ | 44,704,637 | |||||||||||||||||
Class B | $ | 45,422,422 | $ | 21,991,909 | $ | 8,819,731 | $ | 10,311,584 | $ | 16,674,397 | $ | 11,786,235 | $ | 5,325,353 | |||||||||||||||||
Class C | $ | 7,163,340 | $ | 20,512,819 | $ | 9,821,654 | $ | 9,959,552 | $ | 8,698,124 | $ | 9,398,937 | $ | 8,205,645 | |||||||||||||||||
Class K | $ | 10,160,760 | $ | 23,281,466 | $ | 13,502,863 | $ | 11,952,019 | $ | 11,191,654 | $ | 14,219,942 | $ | 12,591,275 | |||||||||||||||||
Shares of Beneficial Interest Outstanding — $0.01 Par Value | |||||||||||||||||||||||||||||||
Class A | 22,924,406 | 2,024,652 | 8,263,813 | 1,088,628 | 7,770,329 | 16,289,521 | 2,702,714 | ||||||||||||||||||||||||
Class B | 1,448,140 | 1,658,908 | 586,857 | 900,631 | 1,393,909 | 1,355,879 | 358,021 | ||||||||||||||||||||||||
Class C | 232,113 | 1,547,179 | 659,027 | 870,051 | 725,850 | 1,082,111 | 547,707 | ||||||||||||||||||||||||
Class K | 312,169 | 1,750,149 | 824,059 | 1,017,060 | 931,712 | 1,631,790 | 774,343 | ||||||||||||||||||||||||
Net Asset Value Per Share | |||||||||||||||||||||||||||||||
Class A | $ | 32.59 | $ | 13.30 | $ | 16.85 | $ | 11.83 | $ | 12.03 | $ | 8.72 | $ | 16.54 | |||||||||||||||||
Class B | $ | 31.37 | $ | 13.26 | $ | 15.03 | $ | 11.45 | $ | 11.96 | $ | 8.69 | $ | 14.87 | |||||||||||||||||
Class C | $ | 30.86 | $ | 13.26 | $ | 14.90 | $ | 11.45 | $ | 11.98 | $ | 8.69 | $ | 14.98 | |||||||||||||||||
Class K | $ | 32.55 | $ | 13.30 | $ | 16.39 | $ | 11.75 | $ | 12.01 | $ | 8.71 | $ | 16.26 | |||||||||||||||||
Maximum Offering Price Per Share | |||||||||||||||||||||||||||||||
Class A (Net Asset Value x 104.71%)* | $ | 34.12 | $ | 13.93 | $ | 17.64 | $ | 12.39 | $ | 12.60 | $ | 9.13 | $ | 17.32 | |||||||||||||||||
Class A (Net Asset Value x 103.09%)* | — | — | — | — | — | — | — |
* Based on sale of less than $100,000. On sale of $100,000 or more, the offering price is reduced.
** No load is charged on Class A shares.
See notes to financial statements.
68
The Guardian Baillie Gifford Emerging Markets Fund | The Guardian Investment Quality Bond Fund | The Guardian Low Duration Bond Fund | The Guardian High Yield Bond Fund | The Guardian Tax-Exempt Fund | The Guardian Cash Management Fund | ||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||
Investments, at identified cost (includes majority-owned subsidiary of $120,213,074 for GAAF) | $ | 133,299,884 | $ | 136,486,935 | $ | 35,388,343 | $ | 79,760,589 | $ | 98,176,204 | $ | 427,304,319 | |||||||||||||||
Investments, at market — Note 1 (includes majority- owned subsidiary of $120,732,285 for GAAF) | 190,507,581 | 133,040,419 | 34,805,826 | 78,847,717 | 97,820,402 | 427,304,319 | |||||||||||||||||||||
Cash | 426 | 70,158 | 58,985 | 82,162 | 216,111 | 67,597 | |||||||||||||||||||||
Foreign currency (cost $33,544 GBGIF and $1,234,280 GBGEMF, respectively) | 1,245,977 | — | — | — | — | — | |||||||||||||||||||||
Receivable for securities sold | 1,267,199 | — | — | 102,365 | 3,000,648 | — | |||||||||||||||||||||
Receivable for fund shares sold | 251,274 | 11,881 | 862 | 1,652 | 29,170 | 1,327,721 | |||||||||||||||||||||
Dividends receivable | 416,384 | — | — | — | — | — | |||||||||||||||||||||
Interest receivable | 73 | 950,139 | 274,549 | 1,377,385 | 1,142,605 | 1,482,892 | |||||||||||||||||||||
Receivable for variation margin — Note 1 | — | — | — | — | — | — | |||||||||||||||||||||
Dividend reclaim receivable | — | — | — | — | — | — | |||||||||||||||||||||
Other assets | 50,675 | 2,569 | 651 | 1,552 | 1,877 | 8,214 | |||||||||||||||||||||
Total Assets | 193,739,589 | 134,075,166 | 35,140,873 | 80,412,833 | 102,210,813 | 430,190,743 | |||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||||
Payable for securities purchased | 141,791 | 246,482 | 554,928 | 2,546,221 | 3,000,000 | — | |||||||||||||||||||||
Accrued expenses | — | 18,630 | 7,617 | 7,852 | 17,165 | 47,383 | |||||||||||||||||||||
Payable for fund shares redeemed | 174,911 | 100,149 | 8,984 | 40,861 | 14,283 | 1,069,634 | |||||||||||||||||||||
Payable for variation margin — Note 1 | — | — | — | — | — | — | |||||||||||||||||||||
Accrued foreign capital gains tax | 193,172 | — | — | — | — | — | |||||||||||||||||||||
Distributions payable | — | 91,706 | 599 | — | 11,504 | 5,070 | |||||||||||||||||||||
Payable for forward mortgage securities purchased — Note 6 | — | 10,905,004 | — | — | — | — | |||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | 7,008 | — | — | — | — | — | |||||||||||||||||||||
Due to GIS | 67,142 | 92,651 | 32,544 | 70,637 | 67,997 | 273,484 | |||||||||||||||||||||
Total Liabilities | 584,024 | 11,454,622 | 604,672 | 2,665,571 | 3,110,949 | 1,395,571 | |||||||||||||||||||||
Net Assets | $ | 193,155,565 | $ | 122,620,544 | $ | 34,536,201 | $ | 77,747,262 | $ | 99,099,864 | $ | 428,795,172 | |||||||||||||||
COMPONENTS OF NET ASSETS | |||||||||||||||||||||||||||
Shares of beneficial interest, at par | $ | 95,394 | $ | 129,973 | $ | 35,628 | $ | 108,141 | $ | 101,126 | $ | 4,287,952 | |||||||||||||||
Additional paid-in capital | 113,335,517 | 127,596,473 | 35,582,673 | 94,738,911 | 99,088,023 | 424,507,220 | |||||||||||||||||||||
Undistributed/(distribution in excess of) net investment income/(accumulated net investment loss) | 577,663 | — | — | — | — | — | |||||||||||||||||||||
Accumulated net realized gain/(loss) on investments and foreign currency related transactions | 22,114,320 | (1,659,386 | ) | (499,583 | ) | (16,186,918 | ) | 266,517 | — | ||||||||||||||||||
Net unrealized appreciation/(depreciation) of investments and foreign currency related transactions | 57,032,671 | (3,446,516 | ) | (582,517 | ) | (912,872 | ) | (355,802 | ) | — | |||||||||||||||||
Net Assets | $ | 193,155,565 | $ | 122,620,544 | $ | 34,536,201 | $ | 77,747,262 | $ | 99,099,864 | $ | 428,795,172 | |||||||||||||||
NET ASSETS | |||||||||||||||||||||||||||
Class A | $ | 132,137,847 | $ | 90,496,165 | $ | 9,500,799 | $ | 45,447,742 | $ | 88,153,852 | $ | 405,409,706 | |||||||||||||||
Class B | $ | 14,147,759 | $ | 12,524,274 | $ | 8,248,094 | $ | 9,643,772 | — | $ | 4,728,540 | ||||||||||||||||
Class C | $ | 21,103,638 | $ | 9,794,628 | $ | 7,762,919 | $ | 10,464,269 | $ | 10,946,012 | $ | 6,298,422 | |||||||||||||||
Class K | $ | 25,766,321 | $ | 9,805,477 | $ | 9,024,389 | $ | 12,191,479 | — | $ | 12,358,504 | ||||||||||||||||
Shares of Beneficial Interest Outstanding — $0.01 Par Value | |||||||||||||||||||||||||||
Class A | 6,373,475 | 9,592,587 | 980,172 | 6,320,902 | 8,995,600 | 405,409,706 | |||||||||||||||||||||
Class B | 762,227 | 1,327,937 | 850,868 | 1,341,881 | — | 4,728,540 | |||||||||||||||||||||
Class C | 1,131,870 | 1,038,480 | 800,829 | 1,456,331 | 1,117,023 | 6,298,422 | |||||||||||||||||||||
Class K | 1,271,789 | 1,038,342 | 930,958 | 1,694,998 | — | 12,358,504 | |||||||||||||||||||||
Net Asset Value Per Share | |||||||||||||||||||||||||||
Class A | $ | 20.73 | $ | 9.43 | $ | 9.69 | $ | 7.19 | $ | 9.80 | $ | 1.00 | |||||||||||||||
Class B | $ | 18.56 | $ | 9.43 | $ | 9.69 | $ | 7.19 | — | $ | 1.00 | ||||||||||||||||
Class C | $ | 18.64 | $ | 9.43 | $ | 9.69 | $ | 7.19 | $ | 9.80 | $ | 1.00 | |||||||||||||||
Class K | $ | 20.26 | $ | 9.44 | $ | 9.69 | $ | 7.19 | — | $ | 1.00 | ||||||||||||||||
Maximum Offering Price Per Share | |||||||||||||||||||||||||||
Class A (Net Asset Value x 104.71%)* | $ | 21.71 | $ | 9.87 | — | $ | 7.53 | $ | 10.26 | N/A** | |||||||||||||||||
Class A (Net Asset Value x 103.09%)* | — | — | $ | 9.99 | — | — | — |
69
n The Park Avenue Portfolio
Statements of Operations
Six Months Ended June 30, 2006 (Unaudited)
The Guardian Park Avenue Fund | The Guardian UBS Large Cap Value Fund | The Guardian Park Avenue Small Cap Fund | The Guardian UBS Small Cap Value Fund | The Guardian Asset Allocation Fund | The Guardian S&P 500 Index Fund | The Guardian Baillie Gifford International Growth Fund | |||||||||||||||||||||||||
INVESTMENT INCOME | |||||||||||||||||||||||||||||||
Dividends (includes $664,907 from a majority-owned subsidiary for GAAF) | $ | 7,250,409 | $ | 979,266 | $ | 810,616 | $ | 304,827 | $ | 724,685 | $ | 1,699,338 | $ | 1,122,022 | |||||||||||||||||
Interest | 79,882 | 23,745 | 74,815 | 26,843 | 118,698 | 56,206 | 16,798 | ||||||||||||||||||||||||
Less: Foreign tax withheld | (59,588 | ) | — | — | — | — | — | (116,175 | ) | ||||||||||||||||||||||
Total Income | 7,270,703 | 1,003,011 | 885,431 | 331,670 | 843,383 | 1,755,544 | 1,022,645 | ||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||
Investment advisory fees — Note 2 | 2,135,703 | 389,245 | 665,589 | 230,121 | 336,676 | 226,732 | 278,783 | ||||||||||||||||||||||||
Administrative fees — Class A — Note 2 | 787,928 | 34,234 | 178,429 | 16,605 | 120,535 | 181,879 | 55,133 | ||||||||||||||||||||||||
Administrative fees — Class B — Note 2 | 71,452 | 27,943 | 13,982 | 13,264 | 23,624 | 15,758 | 6,936 | ||||||||||||||||||||||||
Administrative fees — Class C — Note 2 | 8,406 | 26,070 | 12,656 | 12,714 | 10,807 | 11,871 | 10,256 | ||||||||||||||||||||||||
Administrative fees — Class K — Note 2 | 12,352 | 28,996 | 16,795 | 14,947 | 13,372 | 17,224 | 14,795 | ||||||||||||||||||||||||
12b-1 fees — Class B — Note 2 | 214,358 | 83,830 | 41,947 | 39,792 | 70,872 | 47,275 | 20,809 | ||||||||||||||||||||||||
12b-1 fees — Class C — Note 2 | 25,219 | 78,210 | 37,969 | 38,141 | 32,422 | 35,612 | 30,767 | ||||||||||||||||||||||||
12b-1 fees — Class K — Note 2 | 19,762 | 46,393 | 26,873 | 23,915 | 21,395 | 27,558 | 23,672 | ||||||||||||||||||||||||
Transfer agent fees — Class A | 560,770 | 18,350 | 75,797 | 18,097 | 65,998 | 22,256 | 40,169 | ||||||||||||||||||||||||
Transfer agent fees — Class B | 135,284 | 15,753 | 26,014 | 15,152 | 25,047 | 18,029 | 18,371 | ||||||||||||||||||||||||
Transfer agent fees — Class C | 15,691 | 14,471 | 15,291 | 14,445 | 15,090 | 15,475 | 14,650 | ||||||||||||||||||||||||
Transfer agent fees — Class K | 1,647 | 1,490 | 2,080 | 1,245 | 1,237 | 3,324 | 1,222 | ||||||||||||||||||||||||
Custodian fees | 87,083 | 48,524 | 64,960 | 45,599 | 47,506 | 77,825 | 117,613 | ||||||||||||||||||||||||
Trustees' fees — Note 2 | 60,430 | 5,708 | 11,393 | 2,801 | 8,823 | 12,694 | 4,460 | ||||||||||||||||||||||||
Printing expense | 42,920 | 4,464 | 8,035 | 3,536 | 7,157 | 4,312 | 4,469 | ||||||||||||||||||||||||
Registration fees | 34,967 | 25,886 | 32,859 | 25,862 | 31,978 | 40,321 | 31,416 | ||||||||||||||||||||||||
Insurance expense | 32,617 | 2,932 | 6,431 | 1,511 | 4,885 | 5,861 | 2,016 | ||||||||||||||||||||||||
Legal fees | 21,329 | 1,407 | 2,012 | 992 | 1,878 | 3,149 | 1,183 | ||||||||||||||||||||||||
Audit fees | 15,108 | 12,311 | 12,375 | 12,307 | 12,367 | 12,369 | 15,133 | ||||||||||||||||||||||||
Loan commitment fees — Note 8 | 8,500 | 796 | 1,678 | 391 | 1,309 | 1,678 | 622 | ||||||||||||||||||||||||
Interest expense on reverse repurchase agreements | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Other | 5,069 | 226 | 313 | 226 | 226 | 226 | 226 | ||||||||||||||||||||||||
Total Expenses before waiver/reimbursements and Custody credits | 4,296,595 | 867,239 | 1,253,478 | 531,663 | 853,204 | 781,428 | 692,701 | ||||||||||||||||||||||||
Less: Expenses waived and reimbursed by investment adviser — Note 2 | — | — | — | — | (462,258 | ) | (190,311 | ) | — | ||||||||||||||||||||||
Custody credits — Note 1 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Expenses Net of Waiver/Reimbursements and Custody credits | 4,296,595 | 867,239 | 1,253,478 | 531,663 | 390,946 | 591,117 | 692,701 | ||||||||||||||||||||||||
Net Investment Income/(Loss) | 2,974,108 | 135,772 | (368,047 | ) | (199,993 | ) | 452,437 | 1,164,427 | 329,944 | ||||||||||||||||||||||
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES | |||||||||||||||||||||||||||||||
Net realized gain/(loss) on investments — Note 1 | 71,105,722 | 1,811,136 | 6,961,526 | 3,331,660 | (35,586 | ) | 1,715,169 | 4,886,454 | |||||||||||||||||||||||
Net realized gain/(loss) on futures contracts | — | — | — | — | 8,348 | (10,678 | ) | — | |||||||||||||||||||||||
Net realized gains on sales of affiliated underlying funds | — | — | — | — | 713,306 | — | — | ||||||||||||||||||||||||
Realized foreign capital gains tax | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net realized loss on foreign currency related transactions — Note 1 | — | — | — | — | — | — | (14,201 | ) | |||||||||||||||||||||||
Net change in unrealized appreciation/(depreciation) on investments — Note 3 | (55,388,623 | ) | 1,718,508 | 3,577,729 | (2,542,730 | ) | 2,191,144 | 1,779,777 | 365,631 | ||||||||||||||||||||||
Net change in accrued foreign capital gains tax | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net change in unrealized appreciation/(depreciation) of futures contracts — Note 1 | — | — | — | — | 242,987 | (1,985 | ) | — | |||||||||||||||||||||||
Net change in unrealized appreciation/(depreciation) from translation of other assets and liabilities denominated in foreign currencies — Note 1 | — | — | — | — | — | — | 2,411 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currencies | 15,717,099 | 3,529,644 | 10,539,255 | 788,930 | 3,120,199 | 3,482,283 | 5,240,295 | ||||||||||||||||||||||||
NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS | $ | 18,691,207 | $ | 3,665,416 | $ | 10,171,208 | $ | 588,937 | $ | 3,572,636 | $ | 4,646,710 | $ | 5,570,239 |
See notes to financial statements.
70
The Guardian Baillie Gifford Emerging Markets Fund | The Guardian Investment Quality Bond Fund | The Guardian Low Duration Bond Fund | The Guardian High Yield Bond Fund | The Guardian Tax-Exempt Fund | The Guardian Cash Management Fund | ||||||||||||||||||||||
INVESTMENT INCOME | |||||||||||||||||||||||||||
Dividends (includes $664,907 from a majority-owned subsidiary for GAAF) | $ | 2,851,872 | — | — | — | — | — | ||||||||||||||||||||
Interest | 39,537 | $ | 3,263,193 | $ | 744,722 | $ | 2,978,735 | $ | 2,145,453 | $ | 9,788,883 | ||||||||||||||||
Less: Foreign tax withheld | (298,418 | ) | — | — | — | — | — | ||||||||||||||||||||
Total Income | 2,592,991 | 3,263,193 | 744,722 | 2,978,735 | 2,145,453 | 9,788,883 | |||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||
Investment advisory fees — Note 2 | 1,011,201 | 314,494 | 75,766 | 233,265 | 244,620 | 1,031,840 | |||||||||||||||||||||
Administrative fees — Class A — Note 2 | 176,497 | 116,949 | 11,588 | 57,136 | 108,610 | 488,081 | |||||||||||||||||||||
Administrative fees — Class B — Note 2 | 18,468 | 16,291 | 10,280 | 12,089 | — | 5,858 | |||||||||||||||||||||
Administrative fees — Class C — Note 2 | 25,980 | 12,279 | 9,591 | 13,027 | 13,700 | 7,757 | |||||||||||||||||||||
Administrative fees — Class K — Note 2 | 31,855 | 11,728 | 10,633 | 14,942 | — | 14,224 | |||||||||||||||||||||
12b-1 fees — Class B — Note 2 | 55,405 | 48,872 | 30,839 | 36,267 | — | 17,575 | |||||||||||||||||||||
12b-1 fees — Class C — Note 2 | 77,939 | 36,836 | 28,775 | 39,081 | 41,099 | 23,272 | |||||||||||||||||||||
12b-1 fees — Class K — Note 2 | 50,968 | 18,765 | 17,012 | 23,907 | — | 22,757 | |||||||||||||||||||||
Transfer agent fees — Class A | 52,285 | 30,913 | 15,845 | 16,807 | 17,471 | 157,362 | |||||||||||||||||||||
Transfer agent fees — Class B | 16,924 | 17,226 | 14,710 | 15,734 | — | 5,886 | |||||||||||||||||||||
Transfer agent fees — Class C | 16,153 | 14,804 | 14,591 | 14,675 | 14,598 | 3,367 | |||||||||||||||||||||
Transfer agent fees — Class K | 1,841 | 1,992 | 656 | 1,114 | — | 5,031 | |||||||||||||||||||||
Custodian fees | 275,433 | 63,150 | 38,105 | 49,750 | 37,546 | 63,338 | |||||||||||||||||||||
Trustees' fees — Note 2 | 10,017 | 9,053 | 2,330 | 5,484 | 6,696 | 28,943 | |||||||||||||||||||||
Printing expense | 5,450 | 4,868 | 3,315 | 3,826 | 3,463 | 10,633 | |||||||||||||||||||||
Registration fees | 32,514 | 31,714 | 26,586 | 31,728 | 14,633 | 25,666 | |||||||||||||||||||||
Insurance expense | 4,843 | 4,476 | 1,095 | 2,716 | 3,113 | 14,432 | |||||||||||||||||||||
Legal fees | 1,517 | 2,596 | 763 | 1,962 | 2,182 | 7,438 | |||||||||||||||||||||
Audit fees | 15,159 | 12,829 | 12,841 | 15,208 | 12,350 | 11,937 | |||||||||||||||||||||
Loan commitment fees — Note 8 | 1,450 | 1,182 | 304 | 718 | 859 | — | |||||||||||||||||||||
Interest expense on reverse repurchase agreements | — | 5,307 | — | — | — | — | |||||||||||||||||||||
Other | 4,850 | 227 | 227 | 226 | 226 | 254 | |||||||||||||||||||||
Total Expenses before waiver/reimbursements and Custody credits | 1,886,749 | 776,551 | 325,852 | 589,662 | 521,166 | 1,945,651 | |||||||||||||||||||||
Less: Expenses waived and reimbursed by investment adviser — Note 2 | — | (132,131 | ) | (114,531 | ) | (159,949 | ) | (58,582 | ) | (127,892 | ) | ||||||||||||||||
Custody credits — Note 1 | — | — | — | — | (5,632 | ) | — | ||||||||||||||||||||
Expenses Net of Waiver/Reimbursements and Custody credits | 1,886,749 | 644,420 | 211,321 | 429,713 | 456,952 | 1,817,759 | |||||||||||||||||||||
Net Investment Income/(Loss) | 706,242 | 2,618,773 | 533,401 | 2,549,022 | 1,688,501 | 7,971,124 | |||||||||||||||||||||
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES | |||||||||||||||||||||||||||
Net realized gain/(loss) on investments — Note 1 | 22,179,753 | (965,838 | ) | (132,740 | ) | 241,040 | 266,605 | — | |||||||||||||||||||
Net realized gain/(loss) on futures contracts | — | — | — | — | — | — | |||||||||||||||||||||
Net realized gains on sales of affiliated underlying funds | — | — | — | — | — | — | |||||||||||||||||||||
Realized foreign capital gains tax | (16,800 | ) | — | — | — | — | — | ||||||||||||||||||||
Net realized loss on foreign currency related transactions — Note 1 | (49,248 | ) | — | — | — | — | — | ||||||||||||||||||||
Net change in unrealized appreciation/(depreciation) on investments — Note 3 | (5,222,056 | ) | (2,946,072 | ) | (147,312 | ) | (1,947,876 | ) | (1,993,736 | ) | — | ||||||||||||||||
Net change in accrued foreign capital gains tax | 8,815 | — | — | — | — | — | |||||||||||||||||||||
Net change in unrealized appreciation/(depreciation) of futures contracts — Note 1 | — | — | — | — | — | — | |||||||||||||||||||||
Net change in unrealized appreciation/(depreciation) from translation of other assets and liabilities denominated in foreign currencies — Note 1 | 13,483 | — | — | — | — | — | |||||||||||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currencies | 16,913,947 | (3,911,910 | ) | (280,052 | ) | (1,706,836 | ) | (1,727,131 | ) | — | |||||||||||||||||
NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS | $ | 17,620,189 | $ | (1,293,137 | ) | $ | 253,349 | $ | 842,186 | $ | (38,630 | ) | $ | 7,971,124 |
71
n The Park Avenue Portfolio
Statements of Changes in Net Assets
The Guardian Park Avenue Fund | The Guardian UBS Large Cap Value Fund | The Guardian Park Avenue Small Cap Fund | The Guardian UBS Small Cap Value Fund | ||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||||||||||||||||||||
INCREASE/(DECREASE) IN NET ASSETS | |||||||||||||||||||||||||||||||||||
From Operations: | |||||||||||||||||||||||||||||||||||
Net investment income/(loss) | $ | 2,974,108 | $ | 11,699,270 | $ | 135,772 | $ | 300,370 | $ | (368,047 | ) | $ | (670,158 | ) | $ | (199,993 | ) | $ | (356,001 | ) | |||||||||||||||
Net realized gain/(loss) on investments and foreign currency related transactions | 71,105,722 | 85,603,277 | 1,811,136 | 9,230,191 | 6,961,526 | 21,956,703 | 3,331,660 | 6,579,020 | |||||||||||||||||||||||||||
Net change in unrealized appreciation/ (depreciation) of investments and foreign currency related transactions | (55,388,623 | ) | (68,370,583 | ) | 1,718,508 | (1,936,794 | ) | 3,577,729 | (24,814,340 | ) | (2,542,730 | ) | (4,830,288 | ) | |||||||||||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 18,691,207 | 28,931,964 | 3,665,416 | 7,593,767 | 10,171,208 | (3,527,795 | ) | 588,937 | 1,392,731 | ||||||||||||||||||||||||||
Dividends and Distributions to Shareholders from: | |||||||||||||||||||||||||||||||||||
Net investment income | |||||||||||||||||||||||||||||||||||
Class A | (7,085,183 | ) | (8,770,151 | ) | (108,765 | ) | (209,073 | ) | — | — | — | — | |||||||||||||||||||||||
Class B | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Class C | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Class K | (23,602 | ) | (81,418 | ) | (69,259 | ) | (116,217 | ) | — | — | — | — | |||||||||||||||||||||||
Net realized gain on investments and foreign currency related transactions | |||||||||||||||||||||||||||||||||||
Class A | — | — | (463,249 | ) | (2,541,630 | ) | (5,962,399 | ) | (20,505,404 | ) | (299,250 | ) | (1,667,186 | ) | |||||||||||||||||||||
Class B | — | — | (377,414 | ) | (2,146,014 | ) | (424,842 | ) | (2,470,625 | ) | (245,441 | ) | (1,353,648 | ) | |||||||||||||||||||||
Class C | — | — | (352,098 | ) | (1,987,994 | ) | (461,549 | ) | (1,564,893 | ) | (237,054 | ) | (1,283,764 | ) | |||||||||||||||||||||
Class K | — | — | (394,281 | ) | (2,149,631 | ) | (571,960 | ) | (1,807,918 | ) | (274,807 | ) | (1,454,574 | ) | |||||||||||||||||||||
Total Dividends and Distributions to Shareholders | (7,108,785 | ) | (8,851,569 | ) | (1,765,066 | ) | (9,150,559 | ) | (7,420,750 | ) | (26,348,840 | ) | (1,056,552 | ) | (5,759,172 | ) | |||||||||||||||||||
From Capital Share Transactions: | |||||||||||||||||||||||||||||||||||
Net increase/(decrease) in net assets from capital share transactions — Note 7 | (82,846,025 | ) | (265,569,217 | ) | (2,778,885 | ) | (4,015,797 | ) | 1,639,411 | (29,884,116 | ) | 880,464 | 173,598 | ||||||||||||||||||||||
Redemption fees | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
(82,846,025 | ) | (265,569,217 | ) | (2,778,885 | ) | (4,015,797 | ) | 1,639,411 | (29,884,116 | ) | 880,464 | 173,598 | |||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets | (71,263,603 | ) | (245,488,822 | ) | (878,535 | ) | (5,572,589 | ) | 4,389,869 | (59,760,751 | ) | 412,849 | (4,192,843 | ) | |||||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||||||||||
Beginning of period | 881,067,068 | 1,126,555,890 | 93,599,017 | 99,171,606 | 167,028,738 | 226,789,489 | 44,692,381 | 48,885,224 | |||||||||||||||||||||||||||
End of period* | $ | 809,803,465 | $ | 881,067,068 | $ | 92,720,482 | $ | 93,599,017 | $ | 171,418,607 | $ | 167,028,738 | $ | 45,105,230 | $ | 44,692,381 | |||||||||||||||||||
* Includes undistributed/(distribution in excess of) net investment income/(accumulated net investment loss) | $ | 365,191 | $ | 4,499,868 | $ | (40,685 | ) | $ | 1,567 | $ | (368,047 | ) | $ | — | $ | (199,993 | ) | $ | — |
See notes to financial statements.
72
The Guardian Asset Allocation Fund | The Guardian S&P 500 Index Fund | The Guardian Baillie Gifford International Growth Fund | |||||||||||||||||||||||||
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||||||||||||||
INCREASE/(DECREASE) IN NET ASSETS | |||||||||||||||||||||||||||
From Operations: | |||||||||||||||||||||||||||
Net investment income/(loss) | $ | 452,437 | $ | 1,210,995 | $ | 1,164,427 | $ | 2,236,439 | $ | 329,944 | $ | 125,760 | |||||||||||||||
Net realized gain/(loss) on investments and foreign currency related transactions | 686,068 | (220,386 | ) | 1,704,491 | 27,050 | 4,872,253 | 5,615,646 | ||||||||||||||||||||
Net change in unrealized appreciation/ (depreciation) of investments and foreign currency related transactions | 2,434,131 | 4,033,509 | 1,777,792 | 5,646,661 | 368,042 | 2,701,311 | |||||||||||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 3,572,636 | 5,024,118 | 4,646,710 | 7,910,150 | 5,570,239 | 8,442,717 | |||||||||||||||||||||
Dividends and Distributions to Shareholders from: | |||||||||||||||||||||||||||
Net investment income | |||||||||||||||||||||||||||
Class A | (1,020,629 | ) | (313,326 | ) | (785,398 | ) | (1,976,532 | ) | (262,430 | ) | (118,286 | ) | |||||||||||||||
Class B | (78,110 | ) | — | (33,116 | ) | (77,597 | ) | — | — | ||||||||||||||||||
Class C | (18,833 | ) | — | (24,681 | ) | (55,845 | ) | — | — | ||||||||||||||||||
Class K | (90,690 | ) | (7,361 | ) | (52,594 | ) | (108,909 | ) | (65,526 | ) | (25,687 | ) | |||||||||||||||
Net realized gain on investments and foreign currency related transactions | |||||||||||||||||||||||||||
Class A | — | — | — | — | — | — | |||||||||||||||||||||
Class B | — | — | — | — | — | — | |||||||||||||||||||||
Class C | — | — | — | — | — | — | |||||||||||||||||||||
Class K | — | — | — | — | — | — | |||||||||||||||||||||
Total Dividends and Distributions to Shareholders | (1,208,262 | ) | (320,687 | ) | (895,789 | ) | (2,218,883 | ) | (327,956 | ) | (143,973 | ) | |||||||||||||||
From Capital Share Transactions: | |||||||||||||||||||||||||||
Net increase/(decrease) in net assets from capital share transactions — Note 7 | (9,954,063 | ) | (25,519,608 | ) | (11,429,737 | ) | 831,769 | 1,808,468 | (1,422,124 | ) | |||||||||||||||||
Redemption fees | — | — | — | — | 7,823 | 283 | |||||||||||||||||||||
(9,954,063 | ) | (25,519,608 | ) | (11,429,737 | ) | 831,769 | 1,816,291 | (1,421,841 | ) | ||||||||||||||||||
Net Increase/(Decrease) in Net Assets | (7,589,689 | ) | (20,816,177 | ) | (7,678,816 | ) | 6,523,036 | 7,058,574 | 6,876,903 | ||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of period | 137,621,022 | 158,437,199 | 185,075,840 | 178,552,804 | 63,768,336 | 56,891,433 | |||||||||||||||||||||
End of period* | $ | 130,031,333 | $ | 137,621,022 | $ | 177,397,024 | $ | 185,075,840 | $ | 70,826,910 | $ | 63,768,336 | |||||||||||||||
* Includes undistributed/(distribution in excess of) net investment income/(accumulated net investment loss) | $ | 452,445 | $ | 1,208,270 | $ | 296,794 | $ | 28,156 | $ | (78,614 | ) | $ | (80,602 | ) |
73
n The Park Avenue Portfolio
Statements of Changes in Net Assets (Continued)
The Guardian Baillie Gifford Emerging Markets Fund | The Guardian Investment Quality Bond Fund | The Guardian Low Duration Bond Fund | |||||||||||||||||||||||||
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||||||||||||||
INCREASE/(DECREASE) IN NET ASSETS | |||||||||||||||||||||||||||
From Operations: | |||||||||||||||||||||||||||
Net investment income | $ | 706,242 | $ | 729,456 | $ | 2,618,773 | $ | 5,094,437 | $ | 533,401 | $ | 845,656 | |||||||||||||||
Net realized gain/(loss) on investments and foreign currency related transactions | 22,113,705 | 10,342,475 | (965,838 | ) | 262,547 | (132,740 | ) | (304,320 | ) | ||||||||||||||||||
Net change in unrealized appreciation/ (depreciation) of investments and foreign currency related transactions | (5,199,758 | ) | 35,046,308 | (2,946,072 | ) | (2,690,899 | ) | (147,312 | ) | (232,687 | ) | ||||||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 17,620,189 | 46,118,239 | (1,293,137 | ) | 2,666,085 | 253,349 | 308,649 | ||||||||||||||||||||
Dividends and Distributions to Shareholders from: | |||||||||||||||||||||||||||
Net investment income | |||||||||||||||||||||||||||
Class A | (177,988 | ) | (289,672 | ) | (2,024,896 | ) | (3,968,273 | ) | (167,990 | ) | (279,907 | ) | |||||||||||||||
Class B | — | — | (233,259 | ) | (466,343 | ) | (118,059 | ) | (186,640 | ) | |||||||||||||||||
Class C | — | — | (175,965 | ) | (324,807 | ) | (110,180 | ) | (170,354 | ) | |||||||||||||||||
Class K | (27,202 | ) | — | (184,653 | ) | (335,014 | ) | (137,172 | ) | (208,755 | ) | ||||||||||||||||
Net realized gain on investments and foreign currency related transactions | |||||||||||||||||||||||||||
Class A | (3,032,157 | ) | (5,997,317 | ) | (295,091 | ) | (872,637 | ) | — | — | |||||||||||||||||
Class B | (364,030 | ) | (789,741 | ) | (40,679 | ) | (122,551 | ) | — | — | |||||||||||||||||
Class C | (528,407 | ) | (1,023,484 | ) | (31,843 | ) | (85,993 | ) | — | — | |||||||||||||||||
Class K | (594,738 | ) | (1,188,897 | ) | (31,195 | ) | (76,798 | ) | — | — | |||||||||||||||||
Total Dividends and Distributions to Shareholders | (4,724,522 | ) | (9,289,111 | ) | (3,017,581 | ) | (6,252,416 | ) | (533,401 | ) | (845,656 | ) | |||||||||||||||
From Capital Share Transactions: | |||||||||||||||||||||||||||
Net increase/(decrease) in net assets from capital share transactions — Note 7 | 5,132,780 | 36,661,288 | (5,483,426 | ) | (8,241,670 | ) | 1,025,280 | 611,632 | |||||||||||||||||||
Redemption fees | 20,973 | 9,327 | — | — | — | — | |||||||||||||||||||||
5,153,753 | 36,670,615 | (5,483,426 | ) | (8,241,670 | ) | 1,025,280 | 611,632 | ||||||||||||||||||||
Net Increase/(Decrease) in Net Assets | 18,049,420 | 73,499,743 | (9,794,144 | ) | (11,828,001 | ) | 745,228 | 74,625 | |||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of period | 175,106,145 | 101,606,402 | 132,414,688 | 144,242,689 | 33,790,973 | 33,716,348 | |||||||||||||||||||||
End of period* | $ | 193,155,565 | $ | 175,106,145 | $ | 122,620,544 | $ | 132,414,688 | $ | 34,536,201 | $ | 33,790,973 | |||||||||||||||
* Includes undistributed net investment income of | $ | 577,663 | $ | 76,611 | $ | — | $ | — | $ | — | $ | — |
See notes to financial statements.
74
The Guardian High Yield Bond Fund | The Guardian Tax-Exempt Fund | The Guardian Cash Management Fund | |||||||||||||||||||||||||
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||||||||||||||
INCREASE/(DECREASE) IN NET ASSETS | |||||||||||||||||||||||||||
From Operations: | |||||||||||||||||||||||||||
Net investment income | $ | 2,549,022 | $ | 5,187,113 | $ | 1,688,501 | $ | 3,260,381 | $ | 7,971,124 | $ | 10,491,108 | |||||||||||||||
Net realized gain/(loss) on investments and foreign currency related transactions | 241,040 | 1,283,425 | 266,605 | 2,344,289 | — | — | |||||||||||||||||||||
Net change in unrealized appreciation/ (depreciation) of investments and foreign currency related transactions | (1,947,876 | ) | (3,918,482 | ) | (1,993,736 | ) | (1,962,673 | ) | — | — | |||||||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 842,186 | 2,552,056 | (38,630 | ) | 3,641,997 | 7,971,124 | 10,491,108 | ||||||||||||||||||||
Dividends and Distributions to Shareholders from: | |||||||||||||||||||||||||||
Net investment income | |||||||||||||||||||||||||||
Class A | (1,557,363 | ) | (3,388,997 | ) | (1,535,798 | ) | (2,962,128 | ) | (7,602,133 | ) | (10,064,694 | ) | |||||||||||||||
Class B | (292,938 | ) | (554,064 | ) | — | — | (73,402 | ) | (108,025 | ) | |||||||||||||||||
Class C | (315,637 | ) | (575,926 | ) | (152,703 | ) | (298,253 | ) | (97,482 | ) | (119,561 | ) | |||||||||||||||
Class K | (383,084 | ) | (668,126 | ) | — | — | (198,107 | ) | (198,828 | ) | |||||||||||||||||
Net realized gain on investments and foreign currency related transactions | |||||||||||||||||||||||||||
Class A | — | — | (43,007 | ) | (2,167,130 | ) | — | — | |||||||||||||||||||
Class B | — | — | — | — | — | — | |||||||||||||||||||||
Class C | — | — | (5,369 | ) | (276,986 | ) | — | — | |||||||||||||||||||
Class K | — | — | — | — | — | — | |||||||||||||||||||||
Total Dividends and Distributions to Shareholders | (2,549,022 | ) | (5,187,113 | ) | (1,736,877 | ) | (5,704,497 | ) | (7,971,124 | ) | (10,491,108 | ) | |||||||||||||||
From Capital Share Transactions: | |||||||||||||||||||||||||||
Net increase/(decrease) in net assets from capital share transactions — Note 7 | (900,375 | ) | (5,118,741 | ) | 3,300,501 | 6,815,254 | 11,438,017 | (51,945,439 | ) | ||||||||||||||||||
Redemption fees | 9 | 1,076 | — | — | — | — | |||||||||||||||||||||
(900,366 | ) | (5,117,665 | ) | 3,300,501 | 6,815,254 | 11,438,017 | (51,945,439 | ) | |||||||||||||||||||
Net Increase/(Decrease) in Net Assets | (2,607,202 | ) | (7,752,722 | ) | 1,524,994 | 4,752,754 | 11,438,017 | (51,945,439 | ) | ||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of period | 80,354,464 | 88,107,186 | 97,574,870 | 92,822,116 | 417,357,155 | 469,302,594 | |||||||||||||||||||||
End of period* | $ | 77,747,262 | $ | 80,354,464 | $ | 99,099,864 | $ | 97,574,870 | $ | 428,795,172 | $ | 417,357,155 | |||||||||||||||
* Includes undistributed net investment income of | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
75
n The Park Avenue Portfolio
Notes to Financial Statements
June 30, 2006 (Unaudited)
n The Guardian Park Avenue Fund
n The Guardian UBS Large Cap Value Fund
n The Guardian Park Avenue Small Cap Fund
n The Guardian UBS Small Cap Value Fund
n The Guardian Asset Allocation Fund
n The Guardian S&P 500 Index Fund
n The Guardian Baillie Gifford International Growth Fund
n The Guardian Baillie Gifford Emerging Markets Fund
n The Guardian Investment Quality Bond Fund
n The Guardian Low Duration Bond Fund
n The Guardian High Yield Bond Fund
n The Guardian Tax-Exempt Fund
n The Guardian Cash Management Fund
Note 1. Organization and Accounting Policies
The Park Avenue Portfolio (the Portfolio) is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act), which is organized as a business trust under the laws of the Commonwealth of Massachusetts. The Portfolio consists of thirteen series, namely: The Guardian Park Avenue Fund (GPAF); The Guardian UBS Large Cap Value Fund (GULCVF); The Guardian Park Avenue Small Cap Fund (GPASCF); The Guardian UBS Small Cap Value Fund (GUSCVF); The Guardian Asset Allocation Fund (GAAF); The Guardian S&P 500 Index Fund (GSP500F); The Guardian Baillie Gifford International Growth Fund (GBGIF); The Guardian Baillie Gifford Emerging Markets Fund (GBGEMF); The Guardian Investment Quality Bond Fund (GIQBF); The Guardian Low Duration Bond Fund (GLDBF); The Guardian High Yield Bond Fund (GHYBF); The Guardian Tax-Exempt Fund (GTEF); and The Guardian Cash Management Fund (GCMF). The series ar e collectively referred to herein as the "Funds".
The Funds offer up to five classes of shares: Class A, Class B, Class C, Class K and the Institutional Class. Each of the Funds offers Class A shares. Class A shares are sold with an initial sales load of up to 4.50% (up to 3.00% for GLDBF and 0.00% for GCMF) and an administrative fee of up to 0.25% on an annual basis of the Funds' average daily net assets attributable to Class A shares. A redemption fee of 2% is imposed on purchases of Class A shares of GBGIF, GBGEMF and GHYBF if redeemed within 60 days of purchase, except for shares held in omnibus accounts. Class B shares are offered by all of the Funds, except for GTEF. Class B shares are sold without an initial sales load but are subject to a 12b-1 fee of 0.75% and an administrative fee of 0.25% on an annual basis of each Fund's Class B average daily net assets, and a contingent deferred sales load (CDSL) of up to 3% imposed on certain redemptions. Each of the Funds offers Class C share s. Class C shares are sold without an initial sales load but are subject to a 12b-1 fee of 0.75% and an administrative fee of 0.25% on an annual basis of each Fund's Class C average daily net assets, and a CDSL of 1% imposed on certain redemptions. Class K shares are offered by all of the Funds, except for GTEF. Class K shares are sold without an initial sales load but are subject to a 12b-1 fee of 0.40% and an administrative fee of 0.25% on an annual basis of each Fund's Class K average daily net assets, and a CDSL of 1% imposed on certain redemptions. Institutional Class shares are offered by GPAF, GPASCF, GAAF, GSP500F, GBGIF, GBGEMF, GIQBF and GHYBF. As of June 30, 2006, none of the Funds had issued Institutional Class shares. Institutional Class shares are offered at net asset value, without an initial sales load or a CDSL. All classes of shares for each Fund represent interests in the same portfolio of investments, have the same ri ghts and are generally identical in all respects except that each class bears its separate distribution (12b-1 and administrative) and certain class expenses, and has exclusive voting rights with respect to any matter to which a separate vote of any class is required.
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income, gains (losses) and expenses during the reporting period. Actual results could differ from those estimates.
Significant accounting policies of the Funds are as follows:
Investments
Securities listed on domestic or foreign securities exchanges are valued at the last sale price on such exchanges, or if no sale occurred, at the mean of the closing bid and asked prices. Securities that are traded on the NASDAQ National Securities Market are valued at the NASDAQ Official Closing Price. In GAAF, investments in an underlying Fund are valued
76
n The Park Avenue Portfolio
Notes to Financial Statements (Continued)
June 30, 2006 (Unaudited)
at the closing net asset value of each underlying Fund on the day of valuation.
Pursuant to valuation procedures approved by the Board of Trustees, certain debt securities may be valued each business day by an independent pricing service (Service). Debt securities for which quoted bid prices are readily available and representative of the bid side of the market, in the judgment of the Service, are valued at the bid price, except for GTEF. In GTEF, debt securities are valued at the mean between the bid and asked prices obtained by the Service. 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.
Other securities, including securities for which market quotations are not readily available (such as certain mortgage-backed securities, restricted securities, illiquid securities and foreign securities subject to a "significant event") are valued at fair value as determined in good faith by or under the direction of the Funds' Board of Trustees. A "significant event" is an event that will affect the value of a portfolio security that occurs after the close of trading in the security's primary trading market or exchange but before each Fund's NAV is calculated.
Investing outside of the U.S. may involve certain considerations and risks not typically associated with domestic investments, including the possibility of political and economic unrest and different levels of governmental supervision and regulation of foreign securities markets.
GHYBF invests primarily in below investment grade securities (i.e. lower-quality debt), which are subject to certain risks. Lower-quality debt is considered to be speculative because it's less certain that the issuer will be able to pay interest or repay the principal. These securities are generally more volatile and less liquid than investment grade debt. Lower quality debt securities can also be more sensitive to adverse economic conditions, including the issuer's financial condition or stresses in its industry.
Futures contracts are valued at the settlement prices established by the boards of trade or exchanges on which they are traded.
Repurchase agreements are carried at cost which approximates market value (see Note 4). Short-term debt securities with maturities of 60 days or less are valued on an amortized cost basis which approximates market value. GCMF values its investments based on amortized cost in accordance with Rule 2a-7 under the 1940 Act.
Investment transactions are recorded on the date of purchase or sale. Security gains or losses are determined on an identified cost basis. Interest income, including amortization/accretion of premium/discount, is accrued daily. Dividend income is recorded on the ex-dividend date.
All income, expenses (other than class-specific expenses) and realized and unrealized gains or losses are allocated daily to each class of shares based upon the relative value of shares of each class. Class-specific expenses, which include any items that are specifically attributed to a particular class, are charged directly to such class. For the six months ended June 30, 2006, 12b-1, administrative and transfer agent fees were the only class-specific expenses.
Foreign Currency Translation
GPAF, GULCVF, GPASCF, GUSCVF, GAAF, GBGIF, GBGEMF and GHYBF are permitted to buy international securities that are not U.S. dollar denominated. Their books and records are maintained in U.S. dollars as follows:
(1) The foreign currency market value of investment securities and other assets and liabilities stated in foreign currencies are translated into U.S. dollars at the current rate of exchange.
(2) Security purchases and sales, income and expenses are translated at the rate of exchange prevailing on the respective dates of such transactions.
The resulting gains and losses are included in the Statement of Operations as follows:
Gains and losses attributable to foreign currency exchange rates on sales of securities are recorded for financial statement purposes as net realized gains and losses on investments. Realized foreign exchange gains and losses, which result from changes in foreign exchange rates between the date on which a Fund earns dividends and interest or pays foreign withholding taxes or other expenses and the date on which U.S. dollar equivalent amounts are actually received or paid, are included in net realized gains or losses on foreign currency related transactions. Realized foreign exchange gains and losses which result from changes in foreign exchange rates between the trade and settlement dates on security and currency transactions are also included in net realized gains and losses on foreign currency related transactions. Net currency gains and losses from valuing other assets and liabilities denominated in foreign currency at the period end exch ange rate are reflected in net change in
77
n The Park Avenue Portfolio
Notes to Financial Statements (Continued)
June 30, 2006 (Unaudited)
unrealized appreciation or depreciation from translation of other assets and liabilities denominated in foreign currencies.
Forward Foreign Currency Contracts
GPAF, GULCVF, GPASCF, GUSCVF, GAAF, GBGIF, GBGEMF and GHYBF may enter into forward foreign currency contracts in connection with planned purchases or sales of securities, or to hedge against changes in currency exchange rates affecting the values of their investments that are denominated in a particular currency. A forward foreign currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward exchange rate. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. Fluctuations in the value of forward foreign currency contracts are recorded for book purposes as unrealized gains or losses from translation of other assets and liabilities denominated in foreign currencies by the Funds. When forward contracts are closed, the Funds will record realized gains or loss es equal to the difference between the values of such forward contracts at the time each was opened and the values at the time each was closed. Such amounts are recorded in net realized gains or losses on foreign currency related transactions. The Funds will not enter into a forward foreign currency contract if such contract would obligate the applicable Funds to deliver an amount of foreign currency in excess of the value of the Funds' portfolio securities or other assets denominated in that currency.
Futures Contracts
The Funds (except GCMF) may enter into financial futures contracts for the delayed delivery of securities, currency or contracts based on financial indices at a fixed price on a future date. In entering into such contracts, the Funds are required to deposit either in cash or securities an amount equal to a certain percentage of the contract amount. Subsequent payments are made or received by the Funds each day, depending on the daily fluctuations in the value of the underlying security, and are recorded for financial statement purposes as variation margins by the Funds. The daily changes in the variation margin are recognized as unrealized gains or losses by the Funds. The Funds' investments in financial futures contracts are designed to hedge against anticipated future changes in interest or exchange rates or securities prices. In addition, GAAF may enter into financial futures contracts for non-hedging purposes. Should interest or exchange rates, securities prices or prices of futures contracts move unexpectedly, the Funds may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. GAAF's portfolio holdings correspond to the custodian bank's records and reflect accounting treatment for the futures contracts in the portfolio.
Dividend Distributions
Dividends from net investment income are declared and accrued daily and are paid monthly for GIQBF, GLDBF, GHYBF and GTEF, and declared and paid semi-annually for GPAF, GULCVF, GPASCF, GUSCVF, GAAF, GSP500F, GBGIF and GBGEMF. Net realized short-term and long-term capital gains for these Funds will be distributed at least annually. Dividends from GCMF's net investment income, which includes any net realized capital gains or losses, are declared and accrued daily and paid monthly on the last business day of each month.
All dividends and distributions are recorded 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 GAAP may cause temporary overdistributions of net realized gains and net investment income on a GAAP basis.
Taxes
Each Fund has qualified and intends to remain qualified to be taxed as a "regulated investment company" under the provisions of the U.S. Internal Revenue Code (Code), and as such will not be subject to federal income tax on taxable income (including any realized capital gains) which is distributed in accordance with the provisions of the Code. Therefore, no federal income tax provision is required.
Withholding taxes on foreign interest, dividends and capital gains in GPAF, GBGIF and GBGEMF have been provided for in accordance with the applicable country's tax rules and rates.
Reclassification of Capital Accounts
The treatment for financial statement purposes of distributions made during the year from net investment income and net realized gains may differ from their ultimate treatment for federal income tax purposes. These differences primarily are caused by differences in the timing of the recognition of certain components of income or capital gains, and the recharacterization of foreign exchange gains or losses to either ordinary income or realized capital gains for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications would have no effect on net assets, results of operations, or net asset value per share of the Funds.
78
n The Park Avenue Portfolio
Notes to Financial Statements (Continued)
June 30, 2006 (Unaudited)
Custody Credits
GTEF has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances were used to reduce a portion of the Fund's expenses. During the period, GTEF's custodian fees were reduced by $5,632 under this arrangement. GTEF could have employed the uninvested assets to produce income if GTEF had not entered into such arrangement.
Note 2. Investment Advisory Agreements and Payments to or from Related Parties
The Funds (except GBGIF and GBGEMF) have an investment advisory agreement with Guardian Investor Services LLC (GIS), an indirect wholly-owned subsidiary of The Guardian Life Insurance Company of America (Guardian Life). Fees for investment advisory are at an annual rate of 0.50% of the average daily net assets for GPAF, GIQBF and GTEF. GPASCF, GSP500F, GHYBF and GLDBF pay GIS at annual rates of 0.75%, 0.25%, 0.60% and 0.45%, respectively, of their average daily net assets. GCMF pays GIS investment advisory fees at an annual rate of 0.50% of its average daily net assets for the first $500 million and at an annual rate of 0.45% of its average daily net assets in excess of $500 million.
GAAF is subject to a contractual annual advisory fee of 0.65% of its average daily net assets. However, GIS has agreed to a waiver of 0.15% of GAAF's annual advisory fee when GAAF is operated as a "fund of funds" so that GAAF's effective advisory fee is 0.50% of its average daily net assets. There are no duplicative advisory and administrative service fees charged to GAAF on assets invested in other Guardian Funds. Under an SEC exemptive order, advisory and administrative fees are paid at the underlying Fund level.
GULCVF pays investment advisory fees to GIS at an annual rate of 0.83% of its average daily net assets. GUSCVF pays investment advisory fees to GIS at an annual rate of 1.00% of its average daily net assets for the first $50 million and an annual rate of 0.95% of its average daily net assets in excess of $50 million. GIS has entered into a sub-investment advisory agreement with UBS Global Asset Management (Americas), Inc. (UBS Global AM). UBS Global AM is responsible for the day-to-day management of GULCVF and GUSCVF. GIS continually monitors and evaluates the performance of UBS Global AM. As compensation for its services, GIS pays UBS Global AM at an annual rate of 0.43% of GULCVF's average daily net assets and at an annual rate of 0.60% for the first $50 million of GUSCVF's average daily net assets and at an annual rate of 0.55% of GUSCVF's average daily net assets in excess of $50 million. Payment of sub-investment advisory fees does not represent a separate or additional expense to GULCVF or GUSCVF.
The Portfolio, on behalf of GBGIF and GBGEMF, has an investment management agreement with Guardian Baillie Gifford Limited (GBG), a Scottish corporation owned by The Guardian Insurance & Annuity Company, Inc. (GIAC), a wholly-owned subsidiary of Guardian Life and Baillie Gifford Overseas Limited (BG Overseas). GBG is responsible for the overall investment management of GBGIF's and GBGEMF's portfolios of investments, subject to the supervision of the Portfolio's Board of Trustees. GBG has entered into a sub-investment management agreement with BG Overseas pursuant to which BG Overseas is responsible for the day-to-day management of GBGIF and GBGEMF. GBG continually monitors and evaluates the performance of BG Overseas. As compensation for its services, GBGIF and GBGEMF pay GBG annual investment management fees of 0.80% and 1.00%, respectively, of their average daily net assets. One half of these fees is payable by GBG to BG Overseas for i ts services. Payment of the sub-investment management fee does not represent a separate or additional expense to GBGIF or GBGEMF.
The Guardian Fund Complex pays trustees who are not "interested persons" (as defined in the 1940 Act) fees consisting of a $5,000 per meeting fee and an annual retainer of $30,500, allocated among all funds in the Guardian Fund Complex based on their relative average daily net assets. Board committee members also receive a fee of $2,000 per committee meeting, which also is allocated among all funds in the Guardian Fund Complex based on their relative average daily net assets. Additional compensation is paid to the Chairmen of the Nominating and Governance Committee and the Audit Committee, respectively. GIS pays compensation to certain trustees who are interested persons. Certain officers and trustees of the Funds are affiliated with GIS.
GAAF received $664,907 in dividends from other Guardian mutual funds.
Park Avenue Securities LLC (PAS), a wholly-owned subsidiary of GIAC and an affiliate of GIS, distributes the Portfolio's shares as a retail broker-dealer. For the six months ended June 30, 2006, PAS received $1,167,378 for brokerage commissions from the Portfolio.
Pursuant to the Administrative Services Agreement adopted by the Funds on behalf of the Class A, Class B, Class C and Class K shares, each of the Funds, except GPAF, pays GIS an administrative service fee at an annual rate of 0.25% of the Funds' average daily net assets. GPAF pays this fee to GIS at an annual rate of up to 0.25% of the average daily net assets for which a "dealer of record" has been designated. For the six months ended June 30, 2006, GPAF Class A shares paid an annualized rate of 0.20% of its average daily net assets pursuant to the Administrative Services Agreement.
79
n The Park Avenue Portfolio
Notes to Financial Statements (Continued)
June 30, 2006 (Unaudited)
Under Distribution Plans adopted by the Portfolio pursuant to Rule 12b-1 under the 1940 Act (the "12b-1 Plans"), each Fund is authorized to pay a monthly 12b-1 fee for certain classes of shares at an annual rate of 0.75% of the average daily net assets of the Fund's Class B and Class C shares and 0.40% of the average daily net assets of the Fund's Class K shares as compensation for distribution-related services provided to the Class B, Class C and Class K shares of the Funds.
For the six months ended June 30, 2006, GIS voluntarily assumed a portion of the ordinary operating expenses (excluding interest expense associated with reverse repurchase agreements and securities lending) so that total expenses do not exceed on an annual basis the following expense ratios of the respective Funds:
Fund | Class A | Class B | Class C | Class K | |||||||||||||||
GSP500F | 0.53 | % | 1.28 | % | 1.28 | % | 0.93 | % | |||||||||||
GIQBF | 0.85 | % | 1.60 | % | 1.60 | % | 1.25 | % | |||||||||||
GLDBF | 0.80 | % | 1.55 | % | 1.55 | % | 1.20 | % | |||||||||||
GHYBF | 0.85 | % | 1.60 | % | 1.60 | % | 1.25 | % | |||||||||||
GTEF | 0.85 | % | N/A | 1.60 | % | N/A | |||||||||||||
GCMF | 0.85 | % | 1.60 | % | 1.60 | % | 1.25 | % |
For the six months ended June 30, 2006, GIS voluntarily assumed a portion of certain Funds' expenses based on their respective average daily net assets as follows:
GSP500F*
Class A | Class B | Class C | Class K | ||||||||||||||||
Administrative Fees | 0.18 | % | 0.25 | % | 0.25 | % | 0.19 | % | |||||||||||
12b-1 Fees | — | 0.18 | % | 0.22 | % | — | |||||||||||||
0.18 | % | 0.43 | % | 0.47 | % | 0.19 | % |
GIQBF*
Class A | Class B | Class C | Class K | ||||||||||||||||
Administrative Fees | 0.17 | % | 0.25 | % | 0.25 | % | 0.15 | % | |||||||||||
12b-1 Fees | — | 0.12 | % | 0.16 | % | — | |||||||||||||
0.17 | % | 0.37 | % | 0.41 | % | 0.15 | % |
GLDBF*
Class A | Class B | Class C | Class K | ||||||||||||||||
Advisory Fees | 0.16 | % | 0.16 | % | 0.16 | % | 0.16 | % | |||||||||||
Administrative Fees | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | |||||||||||
12b-1 Fees | — | 0.36 | % | 0.38 | % | 0.01 | % | ||||||||||||
Transfer Agent | |||||||||||||||||||
Fees | 0.34 | % | — | — | — | ||||||||||||||
0.75 | % | 0.77 | % | 0.79 | % | 0.42 | % |
GHYBF*
Class A | Class B | Class C | Class K | ||||||||||||||||
Advisory Fees | 0.29 | % | 0.29 | % | 0.29 | % | 0.29 | % | |||||||||||
Transfer Agent | |||||||||||||||||||
Fees | 0.07 | % | 0.32 | % | 0.28 | % | 0.01 | % | |||||||||||
0.36 | % | 0.61 | % | 0.57 | % | 0.30 | % |
GTEF*
Class A | Class C | ||||||||||
Administrative Fees | 0.09 | % | 0.25 | % | |||||||
12b-1 Fees | — | 0.07 | % | ||||||||
0.09 | % | 0.32 | % |
GCMF*
Class A | Class B | Class C | Class K | ||||||||||||||||
Administrative Fees | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | |||||||||||
12b-1 Fees | — | 0.17 | % | 0.03 | % | — | |||||||||||||
0.06 | % | 0.23 | % | 0.09 | % | 0.06 | % |
* Annualized.
For the six months ended June 30, 2006, GIS voluntarily assumed $190,311, $132,131, $58,582 and $127,892 of the administrative and 12b-1 fees of GSP500F, GIQBF, GTEF and GCMF, respectively. GIS voluntarily assumed $114,531 of the advisory, administrative, 12b-1 and transfer agent fees of GLDBF. GIS voluntarily assumed $159,949 of the advisory and transfer agent fees of GHYBF. These arrangements can be terminated at any time by GIS.
The Portfolio has entered into an Underwriting Agreement with GIS pursuant to which GIS serves as the principal underwriter for shares of the Funds.
For the six months ended June 30, 2006, aggregate front-end sales charges for the sale of Class A shares paid to GIS were as follows:
Fund | Commissions | Fund | Commissions | ||||||||||||
GPAF | $ | 4,836 | GBGIF | $ | 2,145 | ||||||||||
GULCVF | 513 | GBGEMF | 1,860 | ||||||||||||
GPASCF | 700 | GIQBF | 716 | ||||||||||||
GUSCVF | 59 | GLDBF | 55 | ||||||||||||
GAAF | 2,364 | GHYBF | 57 | ||||||||||||
GSP500F | 2,065 | GTEF | 1,509 |
80
n The Park Avenue Portfolio
Notes to Financial Statements (Continued)
June 30, 2006 (Unaudited)
GIS is entitled to retain any CDSL imposed on certain Class B, Class C and Class K share redemptions. For the six months ended June 30, 2006, GIS received CDSL charges on Class B, Class C and Class K as follows:
Fund | Class B | Class C | Class K | ||||||||||||
GPAF | $ | 36,866 | $ | 21 | $ | 487 | |||||||||
GULCVF | 669 | 221 | 749 | ||||||||||||
GPASCF | 9,522 | 71 | 364 | ||||||||||||
GUSCVF | 325 | — | 295 | ||||||||||||
GAAF | 12,741 | 164 | 72 | ||||||||||||
GSP500F | 5,839 | 18 | 717 | ||||||||||||
GBGIF | 593 | 81 | 542 | ||||||||||||
GBGEMF | 2,152 | 291 | 1,726 | ||||||||||||
GIQBF | 3,677 | — | 572 | ||||||||||||
GLDBF | 2,367 | 4 | 445 | ||||||||||||
GHYBF | 1,691 | 19 | 703 | ||||||||||||
GTEF | N/A | — | N/A | ||||||||||||
GCMF | 5,757 | — | — |
Note 3. Investment Transactions
Purchases and proceeds from sales of securities (excluding short-term securities) for the six months ended June 30, 2006 were as follows:
GPAF | GULCVF | ||||||||||
Purchases | $ | 345,095,810 | $ | 11,989,389 | |||||||
Proceeds | 436,539,989 | 15,730,272 | |||||||||
GPASCF | GUSCVF | ||||||||||
Purchases | $ | 127,094,104 | $ | 15,955,509 | |||||||
Proceeds | 137,068,213 | 16,262,803 | |||||||||
GAAF | GSP500F | ||||||||||
Purchases | $ | 708,959 | $ | 4,128,865 | |||||||
Proceeds | 10,143,860 | 14,087,376 | |||||||||
GBGIF | GBGEMF | ||||||||||
Purchases | $ | 14,490,584 | $ | 62,989,442 | |||||||
Proceeds | 11,711,631 | 65,608,504 | |||||||||
GIQBF | GLDBF | ||||||||||
Purchases | $ | 92,504,701 | $ | 15,607,718 | |||||||
Proceeds | 94,558,251 | 13,782,016 | |||||||||
GHYBF | GTEF | ||||||||||
Purchases | $ | 30,774,924 | $ | 74,913,073 | |||||||
Proceeds | 31,016,866 | 71,584,924 |
The cost of investments owned at June 30, 2006 for federal income tax purposes was substantially the same as the cost for financial reporting purposes for the Funds. The gross unrealized appreciation and depreciation of investments excluding foreign currency and futures at June 30, 2006 were as follows:
GPAF | GULCVF | ||||||||||
Appreciation | $ | 76,173,862 | $ | 24,488,261 | |||||||
(Depreciation) | (31,443,779 | ) | (1,018,691 | ) | |||||||
Net Unrealized Appreciation | $ | 44,730,083 | $ | 23,469,570 | |||||||
GPASCF | GUSCVF | ||||||||||
Appreciation | $ | 20,557,833 | $ | 7,536,362 | |||||||
(Depreciation) | (4,851,752 | ) | (3,950,932 | ) | |||||||
Net Unrealized Appreciation | $ | 15,706,081 | $ | 3,585,430 | |||||||
GAAF | GSP500F | ||||||||||
Appreciation | $ | 1,793,982 | $ | 44,247,596 | |||||||
(Depreciation) | (1,095,088 | ) | (26,878,504 | ) | |||||||
Net Unrealized Appreciation | $ | 698,894 | $ | 17,369,092 | |||||||
GBGIF | GBGEMF | ||||||||||
Appreciation | $ | 21,328,083 | $ | 59,738,791 | |||||||
(Depreciation) | (570,860 | ) | (2,531,094 | ) | |||||||
Net Unrealized Appreciation | $ | 20,757,223 | $ | 57,207,697 | |||||||
GIQBF | GLDBF | ||||||||||
Appreciation | $ | 211,943 | $ | 9,788 | |||||||
(Depreciation) | (3,658,459 | ) | (592,305 | ) | |||||||
Net Unrealized Depreciation | $ | (3,446,516 | ) | $ | (582,517 | ) | |||||
GHYBF | GTEF | ||||||||||
Appreciation | $ | 776,272 | $ | 810,851 | |||||||
(Depreciation) | (1,689,144 | ) | (1,166,653 | ) | |||||||
Net Unrealized Depreciation | $ | (912,872 | ) | $ | (355,802 | ) |
Note 4. Repurchase Agreements
The collateral for repurchase agreements is 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 collateral falls below the value of the repurchase price plus accrued interest, the applicable Fund 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 applicable Fund maintains the right to sell the collateral and may claim any resulting loss against the seller.
81
n The Park Avenue Portfolio
Notes to Financial Statements (Continued)
June 30, 2006 (Unaudited)
Note 5. Reverse Repurchase Agreements
GAAF, GIQBF, GLDBF and GHYBF may enter into reverse repurchase agreements with banks or third party broker-dealers to borrow short-term funds. Interest on the value of reverse repurchase agreements issued and outstanding is based upon competitive market rates at the time of issuance. At the time GAAF, GIQBF, GLDBF and GHYBF enter into a reverse repurchase agreement, the Funds establish and segregate cash, U.S. government securities or liquid, unencumbered securities that are marked-to-market daily. The value of such segregated assets must be at least equal to the value of the repurchase obligation (principal plus accrued interest), as applicable. Reverse repurchase agreements involve the risk that the buyer of the securities sold by GAAF, GIQBF, GLDBF and GHYBF may be unable to deliver the securities when the Funds seek to repurchase them.
Note 6. Dollar Roll Transactions
GAAF, GIQBF, GLDBF and GHYBF may enter into dollar rolls (principally using TBA's) in which each of the Funds sell mortgage securities for delivery in the current month and simultaneously contract to repurchase similar securities at an agreed-upon price on a fixed date. The securities repurchased will bear the same interest as those sold, but generally will be collateralized at the time of delivery by different pools of mortgages with different prepayment histories than those securities sold. During the period between the sale and repurchase, the Fund will not be entitled to receive interest and principal payments on the securities sold. Dollar roll transactions involve the risk that the buyer of the securities sold by GAAF, GIQBF, GLDBF and GHYBF may be unable to deliver the securities when the Funds seek to repurchase them. GAAF, GIQBF, GLDBF and GHYBF are compensated by the difference between the current sales price and the forward price for the future purchase (often referred to as the "drop"), as well as by the interest earned on the cash proceeds of the initial sale. Dollar rolls may increase fluctuations in GAAF's, GIQBF's, GLDBF's, and GHYBF's net asset value and may be viewed as a form of leverage.
Note 7. Shares of Beneficial Interest
There is an unlimited number of $0.01 par value shares of beneficial interest authorized, divided into five classes, designated as Class A, Class B, Class C, Class K and Institutional Class shares. As of June 30, 2006: (i) the Funds (except for GULCVF, GUSCVF, GLDBF, GTEF and GCMF offered all five classes; (ii) GTEF offered Class A and Class C shares; and (iii) GULCVF, GUSCVF, GLDBF and GCMF offered Class A, Class B, Class C and Class K shares. Through June 30, 2006, no Institutional Class shares of the Funds were sold.
Transactions in shares of beneficial interest were as follows:
n The Guardian Park Avenue Fund
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||||||||
Shares | Amount | ||||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 796,464 | 1,513,157 | $ | 26,601,359 | $ | 46,723,805 | |||||||||||||
Shares issued in reinvestment of dividends | 218,371 | 277,896 | 6,824,104 | 8,486,804 | |||||||||||||||
Shares repurchased | (2,768,694 | ) | (8,378,796 | ) | (92,273,469 | ) | (258,847,128 | ) | |||||||||||
Net decrease | (1,753,859 | ) | (6,587,743 | ) | $ | (58,848,006 | ) | $ | (203,636,519 | ) | |||||||||
Class B | |||||||||||||||||||
Shares sold | 19,736 | 54,862 | $ | 631,304 | $ | 1,533,950 | |||||||||||||
Shares repurchased | (809,029 | ) | (2,154,769 | ) | (25,840,606 | ) | (63,619,864 | ) | |||||||||||
Net decrease | (789,293 | ) | (2,099,907 | ) | $ | (25,209,302 | ) | $ | (62,085,914 | ) | |||||||||
Class C | |||||||||||||||||||
Shares sold | 28,369 | 4,312 | $ | 881,879 | $ | 125,786 | |||||||||||||
Shares repurchased | (5,276 | ) | (16,450 | ) | (164,034 | ) | (478,871 | ) | |||||||||||
Net increase/(decrease) | 23,093 | (12,138 | ) | $ | 717,845 | $ | (353,085 | ) | |||||||||||
Class K | |||||||||||||||||||
Shares sold | 21,106 | 34,104 | $ | 693,025 | $ | 1,045,347 | |||||||||||||
Shares issued in reinvestment of dividends | 756 | 2,679 | 23,602 | 81,418 | |||||||||||||||
Shares repurchased | (6,792 | ) | (20,253 | ) | (223,189 | ) | (620,464 | ) | |||||||||||
Net increase | 15,070 | 16,530 | $ | 493,438 | $ | 506,301 |
82
n The Park Avenue Portfolio
Notes to Financial Statements (Continued)
June 30, 2006 (Unaudited)
n The Guardian UBS Large Cap Value Fund
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||||||||
Shares | Amount | ||||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 80,661 | 256,824 | $ | 1,091,097 | $ | 3,436,404 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 43,878 | 206,497 | 562,515 | 2,719,154 | |||||||||||||||
Shares repurchased | (170,045 | ) | (398,898 | ) | (2,307,277 | ) | (5,327,077 | ) | |||||||||||
Net increase/(decrease) | (45,506 | ) | 64,423 | $ | (653,665 | ) | $ | 828,481 | |||||||||||
Class B | |||||||||||||||||||
Shares sold | 10,017 | 79,206 | $ | 135,737 | $ | 1,051,005 | |||||||||||||
Shares issued in reinvestment of distributions | 29,186 | 162,005 | 373,002 | 2,124,852 | |||||||||||||||
Shares repurchased | (119,909 | ) | (362,510 | ) | (1,629,495 | ) | (4,807,935 | ) | |||||||||||
Net decrease | (80,706 | ) | (121,299 | ) | $ | (1,120,756 | ) | $ | (1,632,078 | ) | |||||||||
Class C | |||||||||||||||||||
Shares sold | 1,257 | 9,933 | $ | 17,204 | $ | 137,223 | |||||||||||||
Shares issued in reinvestment of distributions | 27,550 | 151,567 | 352,098 | 1,987,920 | |||||||||||||||
Shares repurchased | (95,191 | ) | (322,729 | ) | (1,300,270 | ) | (4,276,277 | ) | |||||||||||
Net decrease | (66,384 | ) | (161,229 | ) | $ | (930,968 | ) | $ | (2,151,134 | ) | |||||||||
Class K | |||||||||||||||||||
Shares sold | 69,964 | 84,885 | $ | 943,649 | $ | 1,135,639 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 36,158 | 172,078 | 463,539 | 2,265,844 | |||||||||||||||
Shares repurchased | (108,118 | ) | (334,796 | ) | (1,480,684 | ) | (4,462,549 | ) | |||||||||||
Net decrease | (1,996 | ) | (77,833 | ) | $ | (73,496 | ) | $ | (1,061,066 | ) |
n The Guardian Park Avenue Small Cap Fund
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||||||||
Shares | Amount | ||||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 1,134,035 | 1,146,962 | $ | 20,747,009 | $ | 20,825,476 | |||||||||||||
Shares issued in reinvestment of distributions | 369,113 | 1,186,890 | 5,843,363 | 20,049,455 | |||||||||||||||
Shares repurchased | (1,217,692 | ) | (3,686,700 | ) | (21,554,549 | ) | (66,493,964 | ) | |||||||||||
Net increase/(decrease) | 285,456 | (1,352,848 | ) | $ | 5,035,823 | $ | (25,619,033 | ) | |||||||||||
Class B | |||||||||||||||||||
Shares sold | 15,638 | 64,547 | $ | 255,627 | $ | 1,075,299 | |||||||||||||
Shares issued in reinvestment of distributions | 28,091 | 152,442 | 396,939 | 2,342,306 | |||||||||||||||
Shares repurchased | (324,897 | ) | (663,104 | ) | (5,269,389 | ) | (10,975,095 | ) | |||||||||||
Net decrease | (281,168 | ) | (446,115 | ) | $ | (4,616,823 | ) | $ | (7,557,490 | ) | |||||||||
Class C | |||||||||||||||||||
Shares sold | 2,116 | 21,471 | $ | 35,000 | $ | 354,526 | |||||||||||||
Shares issued in reinvestment of distributions | 32,720 | 102,339 | 458,418 | 1,554,091 | |||||||||||||||
Shares repurchased | (19,690 | ) | (27,984 | ) | (320,210 | ) | (457,564 | ) | |||||||||||
Net increase | 15,146 | 95,826 | $ | 173,208 | $ | 1,451,053 | |||||||||||||
Class K | |||||||||||||||||||
Shares sold | 47,180 | 83,010 | $ | 822,387 | $ | 1,466,414 | |||||||||||||
Shares issued in reinvestment of distributions | 37,140 | 109,684 | 571,958 | 1,807,914 | |||||||||||||||
Shares repurchased | (19,847 | ) | (83,591 | ) | (347,142 | ) | (1,432,974 | ) | |||||||||||
Net increase | 64,473 | 109,103 | $ | 1,047,203 | $ | 1,841,354 |
83
n The Park Avenue Portfolio
Notes to Financial Statements (Continued)
June 30, 2006 (Unaudited)
n The Guardian UBS Small Cap Value Fund
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||||||||
Shares | Amount | ||||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 26,431 | 89,226 | $ | 331,215 | $ | 1,143,795 | |||||||||||||
Shares issued in reinvestment of distributions | 26,126 | 135,228 | 296,281 | 1,632,731 | |||||||||||||||
Shares repurchased | (55,446 | ) | (221,474 | ) | (682,564 | ) | (2,883,276 | ) | |||||||||||
Net increase/(decrease) | (2,889 | ) | 2,980 | $ | (55,068 | ) | $ | (106,750 | ) | ||||||||||
Class B | |||||||||||||||||||
Shares sold | 3,427 | 22,136 | $ | 40,997 | $ | 281,988 | |||||||||||||
Shares issued in reinvestment of distributions | 22,142 | 113,924 | 242,908 | 1,338,329 | |||||||||||||||
Shares repurchased | (17,997 | ) | (143,366 | ) | (220,815 | ) | (1,818,944 | ) | |||||||||||
Net increase/(decrease) | 7,572 | (7,306 | ) | $ | 63,090 | $ | (198,627 | ) | |||||||||||
Class C | |||||||||||||||||||
Shares sold | 110 | 7,361 | $ | 1,319 | $ | 92,631 | |||||||||||||
Shares issued in reinvestment of distributions | 21,609 | 109,359 | 237,054 | 1,283,760 | |||||||||||||||
Shares repurchased | (407 | ) | (125,331 | ) | (5,000 | ) | (1,592,849 | ) | |||||||||||
Net increase/(decrease) | 21,312 | (8,611 | ) | $ | 233,373 | $ | (216,458 | ) | |||||||||||
Class K | |||||||||||||||||||
Shares sold | 51,665 | 82,453 | $ | 635,440 | $ | 1,061,232 | |||||||||||||
Shares issued in reinvestment of distributions | 24,405 | 121,188 | 274,807 | 1,454,573 | |||||||||||||||
Shares repurchased | (21,924 | ) | (141,014 | ) | (271,178 | ) | (1,820,372 | ) | |||||||||||
Net increase | 54,146 | 62,627 | $ | 639,069 | $ | 695,433 |
n The Guardian Asset Allocation Fund
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||||||||
Shares | Amount | ||||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 351,955 | 772,419 | $ | 4,288,167 | $ | 8,828,652 | |||||||||||||
Shares issued in reinvestment of dividends | 84,130 | 25,850 | 980,959 | 302,099 | |||||||||||||||
Shares repurchased | (911,800 | ) | (2,309,637 | ) | (11,097,676 | ) | (26,442,628 | ) | |||||||||||
Net decrease | (475,715 | ) | (1,511,368 | ) | $ | (5,828,550 | ) | $ | (17,311,877 | ) | |||||||||
Class B | |||||||||||||||||||
Shares sold | 20,477 | 83,488 | $ | 247,721 | $ | 939,236 | |||||||||||||
Shares issued in reinvestment of dividends | 6,512 | — | 75,544 | — | |||||||||||||||
Shares repurchased | (436,315 | ) | (843,757 | ) | (5,259,846 | ) | (9,574,092 | ) | |||||||||||
Net decrease | (409,326 | ) | (760,269 | ) | $ | (4,936,581 | ) | $ | (8,634,856 | ) | |||||||||
Class C | |||||||||||||||||||
Shares sold | 9,532 | 8,369 | $ | 115,229 | $ | 94,820 | |||||||||||||
Shares issued in reinvestment of dividends | 1,621 | — | 18,832 | — | |||||||||||||||
Shares repurchased | (7,299 | ) | (25,076 | ) | (88,149 | ) | (286,950 | ) | |||||||||||
Net increase/(decrease) | 3,854 | (16,707 | ) | $ | 45,912 | $ | (192,130 | ) | |||||||||||
Class K | |||||||||||||||||||
Shares sold | 70,631 | 78,598 | $ | 855,249 | $ | 898,768 | |||||||||||||
Shares issued in reinvestment of dividends | 7,778 | 630 | 90,696 | 7,361 | |||||||||||||||
Shares repurchased | (14,851 | ) | (24,773 | ) | (180,789 | ) | (286,874 | ) | |||||||||||
Net increase | 63,558 | 54,455 | $ | 765,156 | $ | 619,255 |
84
n The Park Avenue Portfolio
Notes to Financial Statements (Continued)
June 30, 2006 (Unaudited)
n The Guardian S&P 500 Index Fund
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||||||||
Shares | Amount | ||||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 177,339 | 1,249,283 | $ | 1,567,926 | $ | 10,320,093 | |||||||||||||
Shares issued in reinvestment of dividends | 92,323 | 230,660 | 774,612 | 1,953,111 | |||||||||||||||
Shares repurchased | (1,485,565 | ) | (1,462,490 | ) | (13,165,011 | ) | (12,233,454 | ) | |||||||||||
Net increase/(decrease) | (1,215,903 | ) | 17,453 | $ | (10,822,473 | ) | $ | 39,750 | |||||||||||
Class B | |||||||||||||||||||
Shares sold | 22,718 | 126,377 | $ | 199,226 | $ | 1,029,998 | |||||||||||||
Shares issued in reinvestment of dividends | 3,823 | 8,974 | 31,999 | 75,808 | |||||||||||||||
Shares repurchased | (183,490 | ) | (240,154 | ) | (1,601,483 | ) | (1,988,016 | ) | |||||||||||
Net decrease | (156,949 | ) | (104,803 | ) | $ | (1,370,258 | ) | $ | (882,210 | ) | |||||||||
Class C | |||||||||||||||||||
Shares sold | 8,404 | 41,469 | $ | 74,177 | $ | 339,240 | |||||||||||||
Shares issued in reinvestment of dividends | 2,874 | 6,473 | 24,059 | 54,669 | |||||||||||||||
Shares repurchased | (27,851 | ) | (139,012 | ) | (242,257 | ) | (1,150,094 | ) | |||||||||||
Net decrease | (16,573 | ) | (91,070 | ) | $ | (144,021 | ) | $ | (756,185 | ) | |||||||||
Class K | |||||||||||||||||||
Shares sold | 150,084 | 371,082 | $ | 1,325,175 | $ | 3,071,277 | |||||||||||||
Shares issued in reinvestment of dividends | 6,268 | 12,845 | 52,594 | 108,909 | |||||||||||||||
Shares repurchased | (53,483 | ) | (90,057 | ) | (470,754 | ) | (749,772 | ) | |||||||||||
Net increase | 102,869 | 293,870 | $ | 907,015 | $ | 2,430,414 |
n The Guardian Baillie Gifford International Growth Fund
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||||||||
Shares | Amount | ||||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 471,235 | 606,020 | $ | 7,857,605 | $ | 8,355,801 | |||||||||||||
Shares issued in reinvestment of dividends | 17,007 | 8,850 | 256,465 | 115,852 | |||||||||||||||
Shares repurchased | (388,866 | ) | (658,641 | ) | (6,435,731 | ) | (9,013,710 | ) | |||||||||||
Net increase/(decrease) | 99,376 | (43,771 | ) | $ | 1,678,339 | $ | (542,057 | ) | |||||||||||
Class B | |||||||||||||||||||
Shares sold | 22,646 | 29,711 | $ | 333,802 | $ | 372,952 | |||||||||||||
Shares repurchased | (66,270 | ) | (152,593 | ) | (998,105 | ) | (1,876,081 | ) | |||||||||||
Net decrease | (43,624 | ) | (122,882 | ) | $ | (664,303 | ) | $ | (1,503,129 | ) | |||||||||
Class C | |||||||||||||||||||
Shares sold | 11,740 | 3,859 | $ | 175,878 | $ | 51,302 | |||||||||||||
Shares repurchased | (18,362 | ) | (3,855 | ) | (290,086 | ) | (46,506 | ) | |||||||||||
Net increase/(decrease) | (6,622 | ) | 4 | $ | (114,208 | ) | $ | 4,796 | |||||||||||
Class K | |||||||||||||||||||
Shares sold | 69,380 | 60,090 | $ | 1,134,952 | $ | 813,349 | |||||||||||||
Shares issued in reinvestment of dividends | 4,418 | 1,993 | 65,525 | 25,687 | |||||||||||||||
Shares repurchased | (18,163 | ) | (16,383 | ) | (291,837 | ) | (220,770 | ) | |||||||||||
Net increase | 55,635 | 45,700 | $ | 908,640 | $ | 618,266 |
85
n The Park Avenue Portfolio
Notes to Financial Statements (Continued)
June 30, 2006 (Unaudited)
n The Guardian Baillie Gifford Emerging Markets Fund
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||||||||
Shares | Amount | ||||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 1,353,034 | 2,705,237 | $ | 29,446,314 | $ | 45,014,259 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 170,819 | 348,486 | 3,125,983 | 6,164,055 | |||||||||||||||
Shares repurchased | (1,435,147 | ) | (994,014 | ) | (30,610,622 | ) | (16,730,419 | ) | |||||||||||
Net increase | 88,706 | 2,059,709 | $ | 1,961,675 | $ | 34,447,895 | |||||||||||||
Class B | |||||||||||||||||||
Shares sold | 38,153 | 53,859 | $ | 748,342 | $ | 797,216 | |||||||||||||
Shares issued in reinvestment of distributions | 21,093 | 48,106 | 345,719 | 756,699 | |||||||||||||||
Shares repurchased | (74,008 | ) | (231,443 | ) | (1,410,867 | ) | (3,332,061 | ) | |||||||||||
Net decrease | (14,762 | ) | (129,478 | ) | $ | (316,806 | ) | $ | (1,778,146 | ) | |||||||||
Class C | |||||||||||||||||||
Shares sold | 123,874 | 73,409 | $ | 2,407,800 | $ | 1,127,203 | |||||||||||||
Shares issued in reinvestment of distributions | 31,768 | 64,416 | 522,910 | 1,019,334 | |||||||||||||||
Shares repurchased | (50,036 | ) | (26,603 | ) | (1,011,624 | ) | (434,407 | ) | |||||||||||
Net increase | 105,606 | 111,222 | $ | 1,919,086 | $ | 1,712,130 | |||||||||||||
Class K | |||||||||||||||||||
Shares sold | 95,644 | 95,468 | $ | 2,000,507 | $ | 1,541,636 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 34,784 | 69,474 | 621,939 | 1,188,894 | |||||||||||||||
Shares repurchased | (51,386 | ) | (28,267 | ) | (1,053,621 | ) | (451,121 | ) | |||||||||||
Net increase | 79,042 | 136,675 | $ | 1,568,825 | $ | 2,279,409 |
n The Guardian Investment Quality Bond Fund
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||||||||
Shares | Amount | ||||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 493,586 | 1,354,098 | $ | 4,751,855 | $ | 13,456,975 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 234,512 | 473,634 | 2,244,218 | 4,690,865 | |||||||||||||||
Shares repurchased | (1,301,861 | ) | (2,158,091 | ) | (12,524,817 | ) | (21,359,313 | ) | |||||||||||
Net decrease | (573,763 | ) | (330,359 | ) | $ | (5,528,744 | ) | $ | (3,211,473 | ) | |||||||||
Class B | |||||||||||||||||||
Shares sold | 8,891 | 55,037 | $ | 85,142 | $ | 545,715 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 27,267 | 57,043 | 260,904 | 564,839 | |||||||||||||||
Shares repurchased | (135,303 | ) | (351,460 | ) | (1,301,908 | ) | (3,485,023 | ) | |||||||||||
Net decrease | (99,145 | ) | (239,380 | ) | $ | (955,862 | ) | $ | (2,374,469 | ) | |||||||||
Class C | |||||||||||||||||||
Shares sold | 3,075 | 28,508 | $ | 29,457 | $ | 283,688 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 21,566 | 40,986 | 206,294 | 405,769 | |||||||||||||||
Shares repurchased | (11,796 | ) | (184,583 | ) | (112,319 | ) | (1,837,513 | ) | |||||||||||
Net increase/(decrease) | 12,845 | (115,089 | ) | $ | 123,432 | $ | (1,148,056 | ) | |||||||||||
Class K | |||||||||||||||||||
Shares sold | 101,315 | 147,493 | $ | 971,862 | $ | 1,464,978 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 22,533 | 41,529 | 215,736 | 411,720 | |||||||||||||||
Shares repurchased | (32,315 | ) | (339,735 | ) | (309,850 | ) | (3,384,370 | ) | |||||||||||
Net increase/(decrease) | 91,533 | (150,713 | ) | $ | 877,748 | $ | (1,507,672 | ) |
86
n The Park Avenue Portfolio
Notes to Financial Statements (Continued)
June 30, 2006 (Unaudited)
n The Guardian Low Duration Bond Fund
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||||||||
Shares | Amount | ||||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 37,920 | 45,792 | $ | 368,658 | $ | 451,141 | |||||||||||||
Shares issued in reinvestment of dividends | 17,075 | 27,885 | 166,108 | 274,046 | |||||||||||||||
Shares repurchased | (28,006 | ) | (76,056 | ) | (272,508 | ) | (747,020 | ) | |||||||||||
Net increase/(decrease) | 26,989 | (2,379 | ) | $ | 262,258 | $ | (21,833 | ) | |||||||||||
Class B | |||||||||||||||||||
Shares sold | 770 | 5,523 | $ | 7,513 | $ | 54,377 | |||||||||||||
Shares issued in reinvestment of dividends | 11,991 | 18,670 | 116,659 | 183,474 | |||||||||||||||
Shares repurchased | (12,870 | ) | (48,867 | ) | (125,057 | ) | (481,065 | ) | |||||||||||
Net decrease | (109 | ) | (24,674 | ) | $ | (885 | ) | $ | (243,214 | ) | |||||||||
Class C | |||||||||||||||||||
Shares sold | 515 | 1,859 | $ | 5,005 | $ | 18,352 | |||||||||||||
Shares issued in reinvestment of dividends | 11,319 | 17,263 | 110,115 | 169,651 | |||||||||||||||
Shares repurchased | (1,904 | ) | (15,489 | ) | (18,528 | ) | (152,795 | ) | |||||||||||
Net increase | 9,930 | 3,633 | $ | 96,592 | $ | 35,208 | |||||||||||||
Class K | |||||||||||||||||||
Shares sold | 68,002 | 139,083 | $ | 660,852 | $ | 1,373,151 | |||||||||||||
Shares issued in reinvestment of dividends | 14,093 | 21,224 | 137,100 | 208,562 | |||||||||||||||
Shares repurchased | (13,439 | ) | (75,275 | ) | (130,637 | ) | (740,242 | ) | |||||||||||
Net increase | 68,656 | 85,032 | $ | 667,315 | $ | 841,471 |
n The Guardian High Yield Bond Fund
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||||||||
Shares | Amount | ||||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 227,575 | 352,480 | $ | 1,665,041 | $ | 2,617,964 | |||||||||||||
Shares issued in reinvestment of dividends | 209,490 | 421,270 | 1,531,221 | 3,118,740 | |||||||||||||||
Shares repurchased | (680,410 | ) | (1,763,465 | ) | (4,998,643 | ) | (13,063,049 | ) | |||||||||||
Net decrease | (243,345 | ) | (989,715 | ) | $ | (1,802,381 | ) | $ | (7,326,345 | ) | |||||||||
Class B | |||||||||||||||||||
Shares sold | 2,924 | 32,448 | $ | 21,332 | $ | 241,695 | |||||||||||||
Shares issued in reinvestment of dividends | 39,402 | 72,450 | 287,937 | 536,049 | |||||||||||||||
Shares repurchased | (44,547 | ) | (82,706 | ) | (327,186 | ) | (612,615 | ) | |||||||||||
Net increase/(decrease) | (2,221 | ) | 22,192 | $ | (17,917 | ) | $ | 165,129 | |||||||||||
Class C | |||||||||||||||||||
Shares sold | 341 | 24,564 | $ | 2,524 | $ | 184,733 | |||||||||||||
Shares issued in reinvestment of dividends | 43,116 | 77,734 | 314,998 | 575,100 | |||||||||||||||
Shares repurchased | (11,609 | ) | (12,800 | ) | (85,085 | ) | (94,196 | ) | |||||||||||
Net increase | 31,848 | 89,498 | $ | 232,437 | $ | 665,637 | |||||||||||||
Class K | |||||||||||||||||||
Shares sold | 72,000 | 118,465 | $ | 527,807 | $ | 883,885 | |||||||||||||
Shares issued in reinvestment of dividends | 52,370 | 90,260 | 382,824 | 668,034 | |||||||||||||||
Shares repurchased | (30,485 | ) | (23,544 | ) | (223,145 | ) | (175,081 | ) | |||||||||||
Net increase | 93,885 | 185,181 | $ | 687,486 | $ | 1,376,838 |
87
n The Park Avenue Portfolio
Notes to Financial Statements (Continued)
June 30, 2006 (Unaudited)
n The Guardian Tax-Exempt Fund
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||||||||
Shares | Amount | ||||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 273,000 | 316,889 | $ | 2,710,962 | $ | 3,246,272 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 152,979 | 489,576 | 1,515,530 | 4,963,329 | |||||||||||||||
Shares repurchased | (101,614 | ) | (193,679 | ) | (1,009,809 | ) | (1,984,200 | ) | |||||||||||
Net increase | 324,365 | 612,786 | $ | 3,216,683 | $ | 6,225,401 | |||||||||||||
Class C | |||||||||||||||||||
Shares sold | 1,054 | 5,377 | $ | 10,450 | $ | 55,450 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 15,864 | 56,489 | 157,167 | 571,830 | |||||||||||||||
Shares repurchased | (8,486 | ) | (3,666 | ) | (83,799 | ) | (37,427 | ) | |||||||||||
Net increase | 8,432 | 58,200 | $ | 83,818 | $ | 589,853 |
n The Guardian Cash Management Fund
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 (Audited) | ||||||||||
Shares @ $1 per share | |||||||||||
Class A | |||||||||||
Shares sold | 122,043,444 | 191,144,428 | |||||||||
Shares issued in reinvestment of dividends | 7,562,132 | 10,019,075 | |||||||||
Shares repurchased | (120,207,872 | ) | (247,260,891 | ) | |||||||
Net increase/(decrease) | 9,397,704 | (46,097,388 | ) | ||||||||
Class B | |||||||||||
Shares sold | 1,388,673 | 1,308,497 | |||||||||
Shares issued in reinvestment of dividends | 68,468 | 100,850 | |||||||||
Shares repurchased | (1,758,578 | ) | (4,523,198 | ) | |||||||
Net decrease | (301,437 | ) | (3,113,851 | ) | |||||||
Class C | |||||||||||
Shares sold | 23,451 | 14,755 | |||||||||
Shares issued in reinvestment of dividends | 97,442 | 119,560 | |||||||||
Shares repurchased | (54,971 | ) | (2,527,403 | ) | |||||||
Net increase/(decrease) | 65,922 | (2,393,088 | ) | ||||||||
Class K | |||||||||||
Shares sold | 12,815,885 | 16,830,845 | |||||||||
Shares issued in reinvestment of dividends | 191,613 | 196,957 | |||||||||
Shares repurchased | (10,731,670 | ) | (17,368,914 | ) | |||||||
Net increase/(decrease) | 2,275,828 | (341,112 | ) |
88
n The Park Avenue Portfolio
Notes to Financial Statements (Continued)
June 30, 2006 (Unaudited)
Note 8. Line of Credit
A $100,000,000 line of credit available to all of the Funds and other related Guardian Funds has been established with State Street Bank and Trust Company and Bank of Montreal. The rate of interest charged on any borrowing is based upon the prevailing Federal Funds rate at the time of the loan plus 0.50% calculated on a 360 day basis per annum. For the six months ended June 30, 2006, none of the Funds borrowed against this line of credit.
The Funds are obligated to pay State Street Bank and Trust Company and Bank of Montreal a commitment fee computed at a rate of 0.08% per annum on the average daily unused portion of the revolving credit.
Note 9. Investments in Affiliates1
A summary of GAAF transactions in affiliated issuers during the six months ended June 30, 2006 is set forth below:
Name of Issuer | Balance of Shares Held December 31, 2005 | Gross Purchases and Additions | Gross Sales and Reductions | Balance of Shares Held June 30, 2006 | Value June 30, 2006 | Dividends Included in Dividend Income | Net Realized Gains from Underlying Funds | Net Realized Gain on Sales | |||||||||||||||||||||||||||
Majority-Owned Subsidiary | |||||||||||||||||||||||||||||||||||
The Guardian S&P 500 Index Fund, Class A | 14,890,483 | 79,250 | 1,124,288 | 13,845,445 | $ | 120,732,285 | $ | 664,907 | $ | — | $ | 713,306 |
1 Affiliated issuers, as defined in the 1940 Act, include issuers in which the Fund held 5% or more of the outstanding voting securities. Majority-owned subsidiaries include issuers in which the Fund held 50% or more of the outstanding voting securities.
89
n The Park Avenue Portfolio
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
Net Realized & Unrealized | Distributions from | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income/ (Loss) | Gain/(Loss) on Investments and Foreign Currency Related Transactions | Increase/ (Decrease) from Investment Operations | Dividends from Net Investment Income | Net Realized Gain on Investments and Foreign Currency Related Transactions | ||||||||||||||||||||||
The Guardian Park Avenue Fund | |||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | $ | 32.26 | $ | 0.16 | $ | 0.48 | $ | 0.64 | $ | (0.31 | ) | — | |||||||||||||||
Year ended 12/31/2005 | 31.37 | 0.47 | 0.74 | 1.21 | (0.32 | ) | — | ||||||||||||||||||||
Year ended 12/31/2004 | 30.08 | 0.34 | 1.35 | 1.69 | (0.40 | ) | — | ||||||||||||||||||||
Year ended 12/31/2003 | 25.03 | 0.23 | 5.00 | 5.23 | (0.18 | ) | — | ||||||||||||||||||||
Year ended 12/31/2002 | 32.00 | 0.17 | (7.06 | ) | (6.89 | ) | (0.08 | ) | — | ||||||||||||||||||
Year ended 12/31/2001 | 41.18 | 0.12 | (9.06 | ) | (8.94 | ) | (0.03 | ) | $ | (0.21 | ) | ||||||||||||||||
Class B: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 30.91 | (0.82 | ) | 1.28 | 0.46 | — | — | ||||||||||||||||||||
Year ended 12/31/2005 | 30.06 | (0.59 | ) | 1.44 | 0.85 | — | — | ||||||||||||||||||||
Year ended 12/31/2004 | 28.72 | (0.20 | ) | 1.54 | 1.34 | — | — | ||||||||||||||||||||
Year ended 12/31/2003 | 23.99 | (0.16 | ) | 4.89 | 4.73 | — | — | ||||||||||||||||||||
Year ended 12/31/2002 | 30.88 | (0.20 | ) | (6.69 | ) | (6.89 | ) | — | — | ||||||||||||||||||
Year ended 12/31/2001 | 40.08 | (0.23 | ) | (8.76 | ) | (8.99 | ) | — | (0.21 | ) | |||||||||||||||||
Class C: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 30.42 | 0.02 | 0.42 | 0.44 | — | — | |||||||||||||||||||||
Year ended 12/31/2005 | 29.62 | (0.00 | )†† | 0.80 | 0.80 | — | — | ||||||||||||||||||||
Year ended 12/31/2004 | 28.37 | (0.09 | ) | 1.34 | 1.25 | — | — | ||||||||||||||||||||
Year ended 12/31/2003 | 23.75 | (0.16 | ) | 4.78 | 4.62 | — | — | ||||||||||||||||||||
Year ended 12/31/2002 | 30.64 | (0.19 | ) | (6.70 | ) | (6.89 | ) | — | — | ||||||||||||||||||
Year ended 12/31/2001 | 39.85 | (0.25 | ) | (8.75 | ) | (9.00 | ) | — | (0.21 | ) | |||||||||||||||||
Class K: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 32.03 | 0.08 | 0.52 | 0.60 | (0.08 | ) | — | ||||||||||||||||||||
Year ended 12/31/2005 | 31.23 | 0.29 | 0.79 | 1.08 | (0.28 | ) | — | ||||||||||||||||||||
Year ended 12/31/2004 | 30.00 | 0.20 | 1.39 | 1.59 | (0.36 | ) | — | ||||||||||||||||||||
Year ended 12/31/2003 | 24.96 | 0.11 | 5.02 | 5.13 | (0.09 | ) | — | ||||||||||||||||||||
Year ended 12/31/2002 | 31.93 | 0.05 | (7.02 | ) | (6.97 | ) | — | — | |||||||||||||||||||
Period from 5/15/2001††† to 12/31/2001 | 35.55 | 0.00 | †† | (3.41 | ) | (3.41 | ) | — | (0.21 | ) | |||||||||||||||||
The Guardian UBS Large Cap Value Fund | |||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 13.07 | 0.05 | 0.46 | 0.51 | (0.05 | ) | (0.23 | ) | |||||||||||||||||||
Year ended 12/31/2005 | 13.30 | 0.10 | 1.12 | 1.22 | (0.11 | ) | (1.34 | ) | |||||||||||||||||||
Year ended 12/31/2004 | 12.82 | 0.08 | 1.59 | 1.67 | (0.07 | ) | (1.12 | ) | |||||||||||||||||||
Period from 2/3/2003††† to 12/31/2003 | 10.00 | 0.08 | 3.06 | 3.14 | (0.07 | ) | (0.25 | ) | |||||||||||||||||||
Class B: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 13.02 | (0.00 | )†† | 0.47 | 0.47 | — | (0.23 | ) | |||||||||||||||||||
Year ended 12/31/2005 | 13.24 | (0.00 | )†† | 1.12 | 1.12 | — | (1.34 | ) | |||||||||||||||||||
Year ended 12/31/2004 | 12.80 | (0.01 | ) | 1.57 | 1.56 | — | (1.12 | ) | |||||||||||||||||||
Period from 2/3/2003††† to 12/31/2003 | 10.00 | 0.00 | †† | 3.06 | 3.06 | (0.01 | ) | (0.25 | ) | ||||||||||||||||||
Class C: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 13.02 | (0.00 | )†† | 0.47 | 0.47 | — | (0.23 | ) | |||||||||||||||||||
Year ended 12/31/2005 | 13.24 | (0.00 | )†† | 1.12 | 1.12 | — | (1.34 | ) | |||||||||||||||||||
Year ended 12/31/2004 | 12.80 | (0.01 | ) | 1.57 | 1.56 | — | (1.12 | ) | |||||||||||||||||||
Period from 2/3/2003††† to 12/31/2003 | 10.00 | 0.00 | †† | 3.06 | 3.06 | (0.01 | ) | (0.25 | ) | ||||||||||||||||||
Class K: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 13.07 | 0.03 | 0.47 | 0.50 | (0.04 | ) | (0.23 | ) | |||||||||||||||||||
Year ended 12/31/2005 | 13.30 | 0.07 | 1.11 | 1.18 | (0.07 | ) | (1.34 | ) | |||||||||||||||||||
Year ended 12/31/2004 | 12.83 | 0.05 | 1.58 | 1.63 | (0.04 | ) | (1.12 | ) | |||||||||||||||||||
Period from 2/3/2003††† to 12/31/2003 | 10.00 | 0.05 | 3.07 | 3.12 | (0.04 | ) | (0.25 | ) |
† Unaudited.
†† Rounds to less than $0.01.
††† Commencement of operations.
* Excludes the effect of sales load.
(a) Not annualized.
(b) Annualized.
90
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net Asset Value, End of Period | Total Return* | Net Assets, End of Period (000's Omitted) | Expenses to Average Net Assets | Net Investment Income/(Loss) to Average Net Assets | Portfolio Turnover Rate | ||||||||||||||||||||||
The Guardian Park Avenue Fund | |||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | $ | 32.59 | 2.02 | %(a) | $ | 747,057 | 0.91 | %(b) | 0.79 | %(b) | 40 | % | |||||||||||||||
Year ended 12/31/2005 | 32.26 | 3.90 | 796,034 | 0.91 | 1.32 | 101 | |||||||||||||||||||||
Year ended 12/31/2004 | 31.37 | 5.64 | 980,872 | 0.88 | 0.95 | 75 | |||||||||||||||||||||
Year ended 12/31/2003 | 30.08 | 20.95 | 1,133,468 | 0.89 | 0.72 | 74 | |||||||||||||||||||||
Year ended 12/31/2002 | 25.03 | (21.56 | ) | 1,120,351 | 0.87 | 0.51 | 60 | ||||||||||||||||||||
Year ended 12/31/2001 | 32.00 | (21.75 | ) | 1,779,818 | 0.83 | 0.31 | 143 | ||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 31.37 | 1.49 | (a) | 45,422 | 2.04 | (b) | (0.35 | )(b) | 40 | ||||||||||||||||||
Year ended 12/31/2005 | 30.91 | 2.83 | 69,159 | 1.92 | 0.34 | 101 | |||||||||||||||||||||
Year ended 12/31/2004 | 30.06 | 4.67 | 130,372 | 1.84 | (0.02 | ) | 75 | ||||||||||||||||||||
Year ended 12/31/2003 | 28.72 | 19.72 | 165,274 | 1.84 | (0.24 | ) | 74 | ||||||||||||||||||||
Year ended 12/31/2002 | 23.99 | (22.31 | ) | 167,471 | 1.83 | (0.44 | ) | 60 | |||||||||||||||||||
Year ended 12/31/2001 | 30.88 | (22.46 | ) | 274,761 | 1.75 | (0.61 | ) | 143 | |||||||||||||||||||
Class C: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 30.86 | 1.45 | (a) | 7,163 | 2.04 | (b) | (0.35 | )(b) | 40 | ||||||||||||||||||
Year ended 12/31/2005 | 30.42 | 2.70 | 6,358 | 2.08 | 0.13 | 101 | |||||||||||||||||||||
Year ended 12/31/2004 | 29.62 | 4.41 | 6,551 | 2.06 | (0.21 | ) | 75 | ||||||||||||||||||||
Year ended 12/31/2003 | 28.37 | 19.45 | 6,622 | 2.12 | (0.52 | ) | 74 | ||||||||||||||||||||
Year ended 12/31/2002 | 23.75 | (22.49 | ) | 5,884 | 2.07 | (0.67 | ) | 60 | |||||||||||||||||||
Year ended 12/31/2001 | 30.64 | (22.62 | ) | 7,594 | 1.96 | (0.81 | ) | 143 | |||||||||||||||||||
Class K: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 32.55 | 1.87 | (a) | 10,161 | 1.25 | (b) | 0.44 | (b) | 40 | ||||||||||||||||||
Year ended 12/31/2005 | 32.03 | 3.51 | 9,517 | 1.25 | 0.94 | 101 | |||||||||||||||||||||
Year ended 12/31/2004 | 31.23 | 5.34 | 8,761 | 1.20 | 0.69 | 75 | |||||||||||||||||||||
Year ended 12/31/2003 | 30.00 | 20.58 | 7,145 | 1.20 | 0.41 | 74 | |||||||||||||||||||||
Year ended 12/31/2002 | 24.96 | (21.83 | ) | 5,752 | 1.21 | 0.19 | 60 | ||||||||||||||||||||
Period from 5/15/2001††† to 12/31/2001 | 31.93 | (9.63 | )(a) | 7,229 | 1.22 | (b) | 0.02 | (b) | 143 | ||||||||||||||||||
The Guardian UBS Large Cap Value Fund | |||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 13.30 | 4.03 | (a) | 26,934 | 1.43 | (b) | 0.71 | (b) | 13 | ||||||||||||||||||
Year ended 12/31/2005 | 13.07 | 9.32 | 27,050 | 1.44 | 0.75 | 35 | |||||||||||||||||||||
Year ended 12/31/2004 | 13.30 | 13.43 | 26,676 | 1.44 | 0.68 | 32 | |||||||||||||||||||||
Period from 2/3/2003††† to 12/31/2003 | 12.82 | 31.48 | (a) | 21,705 | 1.59 | (b) | 0.78 | (b) | 45 | ||||||||||||||||||
Class B: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 13.26 | 3.69 | (a) | 21,992 | 2.19 | (b) | (0.05 | )(b) | 13 | ||||||||||||||||||
Year ended 12/31/2005 | 13.02 | 8.54 | 22,643 | 2.19 | 0.01 | 35 | |||||||||||||||||||||
Year ended 12/31/2004 | 13.24 | 12.52 | 24,646 | 2.19 | (0.07 | ) | 32 | ||||||||||||||||||||
Period from 2/3/2003††† to 12/31/2003 | 12.80 | 30.65 | (a) | 21,378 | 2.33 | (b) | 0.03 | (b) | 45 | ||||||||||||||||||
Class C: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 13.26 | 3.69 | (a) | 20,513 | 2.19 | (b) | (0.05 | )(b) | 13 | ||||||||||||||||||
Year ended 12/31/2005 | 13.02 | 8.54 | 21,005 | 2.19 | 0.01 | 35 | |||||||||||||||||||||
Year ended 12/31/2004 | 13.24 | �� | 12.52 | 23,507 | 2.19 | (0.07 | ) | 32 | |||||||||||||||||||
Period from 2/3/2003††† to 12/31/2003 | 12.80 | 30.65 | (a) | 20,801 | 2.33 | (b) | 0.04 | (b) | 45 | ||||||||||||||||||
Class K: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 13.30 | 3.92 | (a) | 23,281 | 1.71 | (b) | 0.43 | (b) | 13 | ||||||||||||||||||
Year ended 12/31/2005 | 13.07 | 9.02 | 22,901 | 1.71 | 0.49 | 35 | |||||||||||||||||||||
Year ended 12/31/2004 | 13.30 | 13.05 | 24,342 | 1.70 | 0.42 | 32 | |||||||||||||||||||||
Period from 2/3/2003††† to 12/31/2003 | 12.83 | 31.22 | (a) | 20,944 | 1.88 | (b) | 0.49 | (b) | 45 |
91
n The Park Avenue Portfolio
Financial Highlights (Continued)
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
Net Realized & Unrealized | Distributions from | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income/ (Loss) | Gain/(Loss) on Investments and Foreign Currency Related Transactions | Increase/ (Decrease) from Investment Operations | Net Realized Gain on Investments and Foreign Currency Related Transactions | Net Asset Value, End of Period | ||||||||||||||||||||||
The Guardian Park Avenue Small Cap Fund | |||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | $ | 16.58 | $ | (0.02 | ) | $ | 1.03 | $ | 1.01 | $ | (0.74 | ) | $ | 16.85 | |||||||||||||
Year ended 12/31/2005 | 19.40 | (0.04 | ) | (0.05 | ) | (0.09 | ) | (2.73 | ) | 16.58 | |||||||||||||||||
Year ended 12/31/2004 | 19.05 | (0.12 | ) | 2.90 | 2.78 | (2.43 | ) | 19.40 | |||||||||||||||||||
Year ended 12/31/2003 | 13.30 | (0.10 | ) | 5.85 | 5.75 | — | 19.05 | ||||||||||||||||||||
Year ended 12/31/2002 | 15.74 | (0.07 | ) | (2.37 | ) | (2.44 | ) | — | 13.30 | ||||||||||||||||||
Year ended 12/31/2001 | 16.93 | (0.06 | ) | (1.13 | ) | (1.19 | ) | — | 15.74 | ||||||||||||||||||
Class B: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 14.94 | (0.14 | ) | 0.97 | 0.83 | (0.74 | ) | 15.03 | |||||||||||||||||||
Year ended 12/31/2005 | 17.94 | (0.25 | ) | (0.02 | ) | (0.27 | ) | (2.73 | ) | 14.94 | |||||||||||||||||
Year ended 12/31/2004 | 17.93 | (0.27 | ) | 2.71 | 2.44 | (2.43 | ) | 17.94 | |||||||||||||||||||
Year ended 12/31/2003 | 12.64 | (0.24 | ) | 5.53 | 5.29 | — | 17.93 | ||||||||||||||||||||
Year ended 12/31/2002 | 15.10 | (0.20 | ) | (2.26 | ) | (2.46 | ) | — | 12.64 | ||||||||||||||||||
Year ended 12/31/2001 | 16.39 | (0.20 | ) | (1.09 | ) | (1.29 | ) | — | 15.10 | ||||||||||||||||||
Class C: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 14.81 | (0.09 | ) | 0.92 | 0.83 | (0.74 | ) | 14.90 | |||||||||||||||||||
Year ended 12/31/2005 | 17.80 | (0.17 | ) | (0.09 | ) | (0.26 | ) | (2.73 | ) | 14.81 | |||||||||||||||||
Year ended 12/31/2004 | 17.83 | (0.26 | ) | 2.66 | 2.40 | (2.43 | ) | 17.80 | |||||||||||||||||||
Year ended 12/31/2003 | 12.59 | (0.27 | ) | 5.51 | 5.24 | — | 17.83 | ||||||||||||||||||||
Year ended 12/31/2002 | 15.07 | (0.22 | ) | (2.26 | ) | (2.48 | ) | — | 12.59 | ||||||||||||||||||
Year ended 12/31/2001 | 16.39 | (0.21 | ) | (1.11 | ) | (1.32 | ) | — | 15.07 | ||||||||||||||||||
Class K: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 16.16 | (0.05 | ) | 1.02 | 0.97 | (0.74 | ) | 16.39 | |||||||||||||||||||
Year ended 12/31/2005 | 19.05 | (0.07 | ) | (0.09 | ) | (0.16 | ) | (2.73 | ) | 16.16 | |||||||||||||||||
Year ended 12/31/2004 | 18.79 | (0.16 | ) | 2.85 | 2.69 | (2.43 | ) | 19.05 | |||||||||||||||||||
Year ended 12/31/2003 | 13.15 | (0.14 | ) | 5.78 | 5.64 | — | 18.79 | ||||||||||||||||||||
Year ended 12/31/2002 | 15.62 | (0.11 | ) | (2.36 | ) | (2.47 | ) | — | 13.15 | ||||||||||||||||||
Period from 5/15/2001†† to 12/31/2001 | 15.71 | (0.07 | ) | (0.02 | ) | (0.09 | ) | — | 15.62 | ||||||||||||||||||
The Guardian UBS Small Cap Value Fund | |||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 11.94 | (0.03 | ) | 0.20 | 0.17 | (0.28 | ) | 11.83 | |||||||||||||||||||
Year ended 12/31/2005 | 13.17 | (0.05 | ) | 0.54 | 0.49 | (1.72 | ) | 11.94 | |||||||||||||||||||
Year ended 12/31/2004 | 12.71 | (0.03 | ) | 2.25 | 2.22 | (1.76 | ) | 13.17 | |||||||||||||||||||
Period from 2/3/2003†† to 12/31/2003 | 10.00 | (0.01 | ) | 3.60 | 3.59 | (0.88 | ) | 12.71 | |||||||||||||||||||
Class B: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 11.61 | (0.07 | ) | 0.19 | 0.12 | (0.28 | ) | 11.45 | |||||||||||||||||||
Year ended 12/31/2005 | 12.94 | (0.14 | ) | 0.53 | 0.39 | (1.72 | ) | 11.61 | |||||||||||||||||||
Year ended 12/31/2004 | 12.61 | (0.12 | ) | 2.21 | 2.09 | (1.76 | ) | 12.94 | |||||||||||||||||||
Period from 2/3/2003†† to 12/31/2003 | 10.00 | (0.09 | ) | 3.58 | 3.49 | (0.88 | ) | 12.61 | |||||||||||||||||||
Class C: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 11.61 | (0.07 | ) | 0.19 | 0.12 | (0.28 | ) | 11.45 | |||||||||||||||||||
Year ended 12/31/2005 | 12.94 | (0.14 | ) | 0.53 | 0.39 | (1.72 | ) | 11.61 | |||||||||||||||||||
Year ended 12/31/2004 | 12.61 | (0.12 | ) | 2.21 | 2.09 | (1.76 | ) | 12.94 | |||||||||||||||||||
Period from 2/3/2003†† to 12/31/2003 | 10.00 | (0.10 | ) | 3.59 | 3.49 | (0.88 | ) | 12.61 | |||||||||||||||||||
Class K: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 11.87 | (0.04 | ) | 0.20 | 0.16 | (0.28 | ) | 11.75 | |||||||||||||||||||
Year ended 12/31/2005 | 13.12 | (0.06 | ) | 0.53 | 0.47 | (1.72 | ) | 11.87 | |||||||||||||||||||
Year ended 12/31/2004 | 12.68 | (0.04 | ) | 2.24 | 2.20 | (1.76 | ) | 13.12 | |||||||||||||||||||
Period from 2/3/2003†† to 12/31/2003 | 10.00 | (0.03 | ) | 3.59 | 3.56 | (0.88 | ) | 12.68 |
† Unaudited.
†† Commencement of operations.
* Excludes the effect of sales load.
(a) Not annualized.
(b) Annualized.
92
Ratios/Supplemental Data | |||||||||||||||||||||||
Total Return* | Net Assets, End of Period (000's Omitted) | Expenses to Average Net Assets | Net Investment Income/(Loss) to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||
The Guardian Park Avenue Small Cap Fund | |||||||||||||||||||||||
Class A: | |||||||||||||||||||||||
Six months ended 6/30/2006† | 6.35 | %(a) | $ | 139,274 | 1.26 | %(b) | (0.26 | )%(b) | 73 | % | |||||||||||||
Year ended 12/31/2005 | (0.15 | ) | 132,246 | 1.25 | (0.20 | ) | 124 | ||||||||||||||||
Year ended 12/31/2004 | 14.74 | 181,068 | 1.21 | (0.67 | ) | 127 | |||||||||||||||||
Year ended 12/31/2003 | 43.23 | 160,049 | 1.27 | (0.67 | ) | 105 | |||||||||||||||||
Year ended 12/31/2002 | (15.50 | ) | 111,803 | 1.25 | (0.45 | ) | 108 | ||||||||||||||||
Year ended 12/31/2001 | (7.03 | ) | 139,774 | 1.28 | (0.37 | ) | 131 | ||||||||||||||||
Class B: | |||||||||||||||||||||||
Six months ended 6/30/2006† | 5.84 | (a) | 8,820 | 2.37 | (b) | (1.42 | )(b) | 73 | |||||||||||||||
Year ended 12/31/2005 | (1.21 | ) | 12,971 | 2.21 | (1.19 | ) | 124 | ||||||||||||||||
Year ended 12/31/2004 | 13.76 | 23,574 | 2.13 | (1.59 | ) | 127 | |||||||||||||||||
Year ended 12/31/2003 | 41.85 | 22,989 | 2.21 | (1.61 | ) | 105 | |||||||||||||||||
Year ended 12/31/2002 | (16.29 | ) | 17,189 | 2.19 | (1.40 | ) | 108 | ||||||||||||||||
Year ended 12/31/2001 | (7.87 | ) | 20,876 | 2.18 | (1.27 | ) | 131 | ||||||||||||||||
Class C: | |||||||||||||||||||||||
Six months ended 6/30/2006† | 5.89 | (a) | 9,822 | 2.21 | (b) | (1.21 | )(b) | 73 | |||||||||||||||
Year ended 12/31/2005 | (1.16 | ) | 9,536 | 2.23 | (1.13 | ) | 124 | ||||||||||||||||
Year ended 12/31/2004 | 13.62 | 9,757 | 2.23 | (1.69 | ) | 127 | |||||||||||||||||
Year ended 12/31/2003 | 41.62 | 8,092 | 2.39 | (1.79 | ) | 105 | |||||||||||||||||
Year ended 12/31/2002 | (16.46 | ) | 5,824 | 2.40 | (1.60 | ) | 108 | ||||||||||||||||
Year ended 12/31/2001 | (8.05 | ) | 6,752 | 2.34 | (1.43 | ) | 131 | ||||||||||||||||
Class K: | |||||||||||||||||||||||
Six months ended 6/30/2006† | 6.27 | (a) | 13,503 | 1.59 | (b) | (0.58 | )(b) | 73 | |||||||||||||||
Year ended 12/31/2005 | (0.53 | ) | 12,276 | 1.58 | (0.48 | ) | 124 | ||||||||||||||||
Year ended 12/31/2004 | 14.47 | 12,391 | 1.52 | (0.97 | ) | 127 | |||||||||||||||||
Year ended 12/31/2003 | 42.89 | 9,893 | 1.55 | (0.96 | ) | 105 | |||||||||||||||||
Year ended 12/31/2002 | (15.81 | ) | 6,748 | 1.55 | (0.75 | ) | 108 | ||||||||||||||||
Period from 5/15/2001†† to 12/31/2001 | (0.57 | )(a) | 7,959 | 1.61 | (b) | (0.77 | )(b) | 131 | |||||||||||||||
The Guardian UBS Small Cap Value Fund | |||||||||||||||||||||||
Class A: | |||||||||||||||||||||||
Six months ended 6/30/2006† | 1.52 | (a) | 12,882 | 1.93 | (b) | (0.49 | )(b) | 35 | |||||||||||||||
Year ended 12/31/2005 | 3.70 | 13,038 | 1.92 | (0.43 | ) | 67 | |||||||||||||||||
Year ended 12/31/2004 | 18.14 | 14,332 | 1.95 | (0.25 | ) | 53 | |||||||||||||||||
Period from 2/3/2003†† to 12/31/2003 | 35.76 | (a) | 10,081 | 2.17 | (b) | (0.07 | )(b) | 94 | |||||||||||||||
Class B: | |||||||||||||||||||||||
Six months ended 6/30/2006† | 1.13 | (a) | 10,312 | 2.69 | (b) | (1.25 | )(b) | 35 | |||||||||||||||
Year ended 12/31/2005 | 2.98 | 10,369 | 2.68 | (1.19 | ) | 67 | |||||||||||||||||
Year ended 12/31/2004 | 17.22 | 11,652 | 2.71 | (1.04 | ) | 53 | |||||||||||||||||
Period from 2/3/2003†† to 12/31/2003 | 34.76 | (a) | 9,737 | 2.91 | (b) | (0.81 | )(b) | 94 | |||||||||||||||
Class C: | |||||||||||||||||||||||
Six months ended 6/30/2006† | 1.13 | (a) | 9,960 | 2.69 | (b) | (1.25 | )(b) | 35 | |||||||||||||||
Year ended 12/31/2005 | 2.99 | 9,852 | 2.69 | (1.20 | ) | 67 | |||||||||||||||||
Year ended 12/31/2004 | 17.22 | 11,095 | 2.72 | (1.04 | ) | 53 | |||||||||||||||||
Period from 2/3/2003†† to 12/31/2003 | 34.76 | (a) | 9,422 | 2.91 | (b) | (0.81 | )(b) | 94 | |||||||||||||||
Class K: | |||||||||||||||||||||||
Six months ended 6/30/2006† | 1.45 | (a) | 11,952 | 2.08 | (b) | (0.63 | )(b) | 35 | |||||||||||||||
Year ended 12/31/2005 | 3.56 | 11,433 | 2.06 | (0.56 | ) | 67 | |||||||||||||||||
Year ended 12/31/2004 | 18.01 | 11,807 | 2.07 | (0.39 | ) | 53 | |||||||||||||||||
Period from 2/3/2003†† to 12/31/2003 | 35.46 | (a) | 9,492 | 2.35 | (b) | (0.25 | )(b) | 94 |
93
n The Park Avenue Portfolio
Financial Highlights (Continued)
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
Net Realized & Unrealized | Distributions from | ||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income/ (Loss) | Gain/(Loss) on Investments and Foreign Currency Related Transactions | Increase/ (Decrease) from Investment Operations | Dividends from Net Investment Income | Net Realized Gain on Investments and Foreign Currency Related Transactions | Net Asset Value, End of Period | |||||||||||||||||||||||||
The Guardian Asset Allocation Fund | |||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | $ | 11.84 | $ | 0.06 | $ | 0.26 | $ | 0.32 | $ | (0.13 | ) | — | $ | 12.03 | |||||||||||||||||
Year ended 12/31/2005 | 11.43 | 0.14 | 0.31 | 0.45 | (0.04 | ) | — | 11.84 | |||||||||||||||||||||||
Year ended 12/31/2004 | 10.63 | 0.16 | 0.88 | 1.04 | (0.24 | ) | — | 11.43 | |||||||||||||||||||||||
Year ended 12/31/2003 | 8.45 | 0.14 | 2.20 | 2.34 | (0.16 | ) | — | 10.63 | |||||||||||||||||||||||
Year ended 12/31/2002 | 10.84 | 0.17 | (2.38 | ) | (2.21 | ) | (0.18 | ) | — | 8.45 | |||||||||||||||||||||
Year ended 12/31/2001 | 13.00 | 0.30 | (1.61 | ) | (1.31 | ) | (0.18 | ) | $ | (0.67 | ) | 10.84 | |||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 11.76 | 0.01 | 0.24 | 0.25 | (0.05 | ) | — | 11.96 | |||||||||||||||||||||||
Year ended 12/31/2005 | 11.40 | 0.03 | 0.33 | 0.36 | — | — | 11.76 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 10.57 | 0.06 | 0.87 | 0.93 | (0.10 | ) | — | 11.40 | |||||||||||||||||||||||
Year ended 12/31/2003 | 8.41 | 0.05 | 2.18 | 2.23 | (0.07 | ) | — | 10.57 | |||||||||||||||||||||||
Year ended 12/31/2002 | 10.77 | 0.09 | (2.37 | ) | (2.28 | ) | (0.08 | ) | — | 8.41 | |||||||||||||||||||||
Year ended 12/31/2001 | 12.95 | 0.19 | (1.59 | ) | (1.40 | ) | (0.11 | ) | (0.67 | ) | 10.77 | ||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 11.75 | (0.00 | )†† | 0.26 | 0.26 | (0.03 | ) | — | 11.98 | ||||||||||||||||||||||
Year ended 12/31/2005 | 11.41 | 0.01 | 0.33 | 0.34 | — | — | 11.75 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 10.56 | 0.04 | 0.88 | 0.92 | (0.07 | ) | — | 11.41 | |||||||||||||||||||||||
Year ended 12/31/2003 | 8.39 | 0.02 | 2.19 | 2.21 | (0.04 | ) | — | 10.56 | |||||||||||||||||||||||
Year ended 12/31/2002 | 10.77 | 0.05 | (2.38 | ) | (2.33 | ) | (0.05 | ) | — | 8.39 | |||||||||||||||||||||
Year ended 12/31/2001 | 12.94 | 0.17 | (1.64 | ) | (1.47 | ) | (0.03 | ) | (0.67 | ) | 10.77 | ||||||||||||||||||||
Class K: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 11.83 | 0.03 | 0.25 | 0.28 | (0.10 | ) | — | 12.01 | |||||||||||||||||||||||
Year ended 12/31/2005 | 11.42 | 0.09 | 0.33 | 0.42 | (0.01 | ) | — | 11.83 | |||||||||||||||||||||||
Year ended 12/31/2004 | 10.60 | 0.11 | 0.89 | 1.00 | (0.18 | ) | — | 11.42 | |||||||||||||||||||||||
Year ended 12/31/2003 | 8.43 | 0.09 | 2.19 | 2.28 | (0.11 | ) | — | 10.60 | |||||||||||||||||||||||
Year ended 12/31/2002 | 10.82 | 0.13 | (2.39 | ) | (2.26 | ) | (0.13 | ) | — | 8.43 | |||||||||||||||||||||
Period from 5/15/2001††† to 12/31/2001 | 12.06 | 0.11 | (0.68 | ) | (0.57 | ) | — | (0.67 | ) | 10.82 | |||||||||||||||||||||
The Guardian S&P 500 Index Fund | |||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 8.55 | 0.06 | 0.16 | 0.22 | (0.05 | ) | — | 8.72 | |||||||||||||||||||||||
Year ended 12/31/2005 | 8.30 | 0.11 | 0.25 | 0.36 | (0.11 | ) | — | 8.55 | |||||||||||||||||||||||
Year ended 12/31/2004 | 7.63 | 0.12 | 0.66 | 0.78 | (0.11 | ) | — | 8.30 | |||||||||||||||||||||||
Year ended 12/31/2003 | 6.04 | 0.08 | 1.59 | 1.67 | (0.08 | ) | — | 7.63 | |||||||||||||||||||||||
Year ended 12/31/2002 | 7.90 | 0.10 | (1.86 | ) | (1.76 | ) | (0.10 | ) | — | 6.04 | |||||||||||||||||||||
Year ended 12/31/2001 | 9.07 | 0.06 | (1.17 | ) | (1.11 | ) | (0.06 | ) | — | 7.90 | |||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 8.54 | 0.03 | 0.14 | 0.17 | (0.02 | ) | — | 8.69 | |||||||||||||||||||||||
Year ended 12/31/2005 | 8.28 | 0.05 | 0.26 | 0.31 | (0.05 | ) | — | 8.54 | |||||||||||||||||||||||
Year ended 12/31/2004 | 7.62 | 0.06 | 0.66 | 0.72 | (0.06 | ) | — | 8.28 | |||||||||||||||||||||||
Year ended 12/31/2003 | 6.03 | 0.03 | 1.59 | 1.62 | (0.03 | ) | — | 7.62 | |||||||||||||||||||||||
Year ended 12/31/2002 | 7.88 | 0.02 | (1.85 | ) | (1.83 | ) | (0.02 | ) | — | 6.03 | |||||||||||||||||||||
Year ended 12/31/2001 | 9.05 | 0.01 | (1.18 | ) | (1.17 | ) | (0.00 | )†† | — | 7.88 | |||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 8.53 | 0.03 | 0.15 | 0.18 | (0.02 | ) | — | 8.69 | |||||||||||||||||||||||
Year ended 12/31/2005 | 8.27 | 0.05 | 0.26 | 0.31 | (0.05 | ) | — | 8.53 | |||||||||||||||||||||||
Year ended 12/31/2004 | 7.61 | 0.06 | 0.66 | 0.72 | (0.06 | ) | — | 8.27 | |||||||||||||||||||||||
Year ended 12/31/2003 | 6.03 | 0.03 | 1.58 | 1.61 | (0.03 | ) | — | 7.61 | |||||||||||||||||||||||
Year ended 12/31/2002 | 7.88 | 0.02 | (1.85 | ) | (1.83 | ) | (0.02 | ) | — | 6.03 | |||||||||||||||||||||
Year ended 12/31/2001 | 9.05 | 0.01 | (1.17 | ) | (1.16 | ) | (0.01 | ) | — | 7.88 | |||||||||||||||||||||
Class K: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 8.55 | 0.04 | 0.15 | 0.19 | (0.03 | ) | — | 8.71 | |||||||||||||||||||||||
Year ended 12/31/2005 | 8.29 | 0.07 | 0.26 | 0.33 | (0.07 | ) | — | 8.55 | |||||||||||||||||||||||
Year ended 12/31/2004 | 7.63 | 0.08 | 0.66 | 0.74 | (0.08 | ) | — | 8.29 | |||||||||||||||||||||||
Year ended 12/31/2003 | 6.04 | 0.06 | 1.59 | 1.65 | (0.06 | ) | — | 7.63 | |||||||||||||||||||||||
Year ended 12/31/2002 | 7.90 | 0.05 | (1.86 | ) | (1.81 | ) | (0.05 | ) | — | 6.04 | |||||||||||||||||||||
Period from 5/15/2001††† to 12/31/2001 | 8.59 | 0.02 | (0.69 | ) | (0.67 | ) | (0.02 | ) | — | 7.90 |
† Unaudited.
†† Rounds to less than $0.01.
††† Commencement of operations.
* Excludes the effect of sales load.
(a) After expenses subsidized by GIS and do not include the expenses of the underlying Funds.
(b) Amounts include the expenses of the underlying Funds.
(c) Not annualized.
(d) Annualized.
(e) Reflects adjustments made on prior year's expense waivers.
94
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
Total Return* | Net Assets, End of Period (000's Omitted) | Expenses to Average Net Assets(a) | Expenses Waived/ Subsidized by GIS | GAAF Gross Expense Ratio(b) | Net Investment Income/(Loss) to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||||||||
The Guardian Asset Allocation Fund | |||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 2.75 | %(c) | $ | 93,467 | 0.37 | %(d) | 0.84 | %(d) | 0.86 | %(d) | 0.89 | %(d) | 1 | % | |||||||||||||||||
Year ended 12/31/2005 | 3.91 | 97,665 | 0.40 | 0.80 | 0.85 | 1.05 | 3 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 9.84 | 111,486 | 0.41 | 0.76 | 0.86 | 1.30 | 0 | ||||||||||||||||||||||||
Year ended 12/31/2003 | 27.87 | 118,988 | 0.43 | 0.77 | 0.92 | (e) | 1.25 | 0 | |||||||||||||||||||||||
Year ended 12/31/2002 | (20.64 | ) | 110,593 | 0.42 | 0.73 | 0.89 | (e) | 1.60 | 4 | ||||||||||||||||||||||
Year ended 12/31/2001 | (10.23 | ) | 169,386 | 0.47 | 0.63 | 0.83 | (e) | 2.44 | 51 | ||||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 2.18 | (c) | 16,674 | 1.25 | (d) | 0.84 | (d) | 1.74 | (d) | (0.07 | )(d) | 1 | |||||||||||||||||||
Year ended 12/31/2005 | 3.16 | 21,200 | 1.23 | 0.80 | 1.69 | 0.16 | 3 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 8.83 | 29,226 | 1.23 | 0.76 | 1.68 | 0.46 | 0 | ||||||||||||||||||||||||
Year ended 12/31/2003 | 26.65 | 32,863 | 1.27 | 0.77 | 1.75 | (e) | 0.43 | 0 | |||||||||||||||||||||||
Year ended 12/31/2002 | (21.31 | ) | 29,064 | 1.25 | 0.73 | 1.71 | (e) | 0.78 | 4 | ||||||||||||||||||||||
Year ended 12/31/2001 | (10.99 | ) | 44,813 | 1.28 | 0.63 | 1.64 | (e) | 1.62 | 51 | ||||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 2.19 | (c) | 8,698 | 1.33 | (d) | 0.84 | (d) | 1.82 | (d) | (0.05 | )(d) | 1 | |||||||||||||||||||
Year ended 12/31/2005 | 2.98 | 8,486 | 1.37 | 0.80 | 1.83 | 0.11 | 3 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 8.68 | 8,431 | 1.42 | 0.76 | 1.87 | 0.35 | 0 | ||||||||||||||||||||||||
Year ended 12/31/2003 | 26.39 | 7,857 | 1.51 | 0.77 | 2.00 | (e) | 0.19 | 0 | |||||||||||||||||||||||
Year ended 12/31/2002 | (21.70 | ) | 6,470 | 1.50 | 0.73 | 1.97 | (e) | 0.58 | 4 | ||||||||||||||||||||||
Year ended 12/31/2001 | (11.48 | ) | 8,080 | 1.46 | 0.63 | 1.82 | (e) | 1.43 | 51 | ||||||||||||||||||||||
Class K: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 2.40 | (c) | 11,192 | 0.65 | (d) | 0.84 | (d) | 1.14 | (d) | 0.64 | (d) | 1 | |||||||||||||||||||
Year ended 12/31/2005 | 3.67 | 10,271 | 0.68 | 0.80 | 1.14 | 0.84 | 3 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 9.51 | 9,293 | 0.68 | 0.76 | 1.13 | 1.13 | 0 | ||||||||||||||||||||||||
Year ended 12/31/2003 | 27.20 | 7,859 | 0.68 | 0.77 | 1.17 | (e) | 1.04 | 0 | |||||||||||||||||||||||
Year ended 12/31/2002 | (21.05 | ) | 6,126 | 0.70 | 0.73 | 1.16 | (e) | 1.39 | 4 | ||||||||||||||||||||||
Period from 5/15/2001††† to 12/31/2001 | (4.85 | )(c) | 7,619 | 0.75 | (d) | 0.72 | (d) | 1.16 | (d)(e) | 1.57 | (d) | 51 | |||||||||||||||||||
The Guardian S&P 500 Index Fund | |||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 2.58 | (c) | 141,992 | 0.53 | (d) | 0.18 | (d) | — | 1.41 | (d) | 2 | ||||||||||||||||||||
Year ended 12/31/2005 | 4.40 | 149,719 | 0.53 | 0.18 | — | 1.36 | 4 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 10.30 | 145,072 | 0.53 | 0.18 | — | 1.50 | 1 | ||||||||||||||||||||||||
Year ended 12/31/2003 | 27.78 | 129,228 | 0.53 | 0.25 | — | 1.26 | 4 | ||||||||||||||||||||||||
Year ended 12/31/2002 | (22.35 | ) | 100,129 | 0.53 | 0.13 | — | 1.03 | 10 | |||||||||||||||||||||||
Year ended 12/31/2001 | (12.25 | ) | 276,645 | 0.53 | 0.10 | — | 0.87 | 1 | |||||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 2.05 | (c) | 11,786 | 1.28 | (d) | 0.43 | (d) | — | 0.66 | (d) | 2 | ||||||||||||||||||||
Year ended 12/31/2005 | 3.75 | 12,913 | 1.28 | 0.43 | — | 0.60 | 4 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 9.40 | 13,394 | 1.28 | 0.45 | — | 0.75 | 1 | ||||||||||||||||||||||||
Year ended 12/31/2003 | 26.94 | 12,070 | 1.28 | 0.61 | — | 0.51 | 4 | ||||||||||||||||||||||||
Year ended 12/31/2002 | (23.22 | ) | 8,472 | 1.28 | 0.52 | — | 0.33 | 10 | |||||||||||||||||||||||
Year ended 12/31/2001 | (12.87 | ) | 9,705 | 1.28 | 0.47 | — | 0.09 | 1 | |||||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 2.15 | (c) | 9,399 | 1.28 | (d) | 0.47 | (d) | — | 0.66 | (d) | 2 | ||||||||||||||||||||
Year ended 12/31/2005 | 3.76 | 9,370 | 1.28 | 0.48 | — | 0.61 | 4 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 9.41 | 9,842 | 1.28 | 0.49 | — | 0.74 | 1 | ||||||||||||||||||||||||
Year ended 12/31/2003 | 26.77 | 8,796 | 1.28 | 0.67 | — | 0.51 | 4 | ||||||||||||||||||||||||
Year ended 12/31/2002 | (23.21 | ) | 6,175 | 1.28 | 0.57 | — | 0.33 | 10 | |||||||||||||||||||||||
Year ended 12/31/2001 | (12.87 | ) | 7,598 | 1.28 | 0.49 | — | 0.09 | 1 | |||||||||||||||||||||||
Class K: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 2.27 | (c) | 14,220 | 0.93 | (d) | 0.19 | (d) | — | 1.01 | (d) | 2 | ||||||||||||||||||||
Year ended 12/31/2005 | 4.05 | 13,074 | 0.93 | 0.19 | — | 0.96 | 4 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 9.72 | 10,244 | 0.93 | 0.16 | — | 1.13 | 1 | ||||||||||||||||||||||||
Year ended 12/31/2003 | 27.31 | 7,594 | 0.93 | 0.21 | — | 0.86 | 4 | ||||||||||||||||||||||||
Year ended 12/31/2002 | (23.00 | ) | 5,722 | 0.93 | 0.10 | — | 0.68 | 10 | |||||||||||||||||||||||
Period from 5/15/2001††† to 12/31/2001 | (7.76 | )(c) | 7,383 | 0.93 | (d) | 0.15 | (d) | — | 0.47 | (d) | 1 |
95
n The Park Avenue Portfolio
Financial Highlights (Continued)
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
Net Realized & Unrealized | Distributions from | ||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income/ (Loss) | Gain/(Loss) on Investments and Foreign Currency Related Transactions | Increase/ (Decrease) from Investment Operations | Dividends from Net Investment Income | Net Realized Gain on Investments and Foreign Currency Related Transactions | Redemption Fees | |||||||||||||||||||||||||
The Guardian Baillie Gifford International Growth Fund | |||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | $ | 15.28 | $ | 0.09 | $ | 1.27 | $ | 1.36 | $ | (0.10 | ) | — | $ | 0.00 | (a) | ||||||||||||||||
Year ended 12/31/2005 | 13.26 | 0.07 | 2.00 | 2.07 | (0.05 | ) | — | 0.00 | (a) | ||||||||||||||||||||||
Year ended 12/31/2004 | 11.43 | 0.03 | 1.83 | 1.86 | (0.03 | ) | — | 0.00 | (a) | ||||||||||||||||||||||
Year ended 12/31/2003 | 8.90 | 0.18 | 2.33 | 2.51 | (0.01 | ) | — | 0.03 | |||||||||||||||||||||||
Year ended 12/31/2002 | 11.09 | 0.06 | (2.25 | ) | (2.19 | ) | — | — | — | ||||||||||||||||||||||
Year ended 12/31/2001 | 14.28 | 0.01 | (3.20 | ) | (3.19 | ) | — | — | — | ||||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 13.74 | (0.21 | ) | 1.34 | 1.13 | — | — | 0.00 | (a) | ||||||||||||||||||||||
Year ended 12/31/2005 | 12.02 | (0.46 | ) | 2.18 | 1.72 | — | — | 0.00 | (a) | ||||||||||||||||||||||
Year ended 12/31/2004 | 10.45 | (0.29 | ) | 1.86 | 1.57 | — | — | 0.00 | (a) | ||||||||||||||||||||||
Year ended 12/31/2003 | 8.22 | (0.16 | ) | 2.36 | 2.20 | — | — | 0.03 | |||||||||||||||||||||||
Year ended 12/31/2002 | 10.38 | (0.19 | ) | (1.97 | ) | (2.16 | ) | — | — | — | |||||||||||||||||||||
Year ended 12/31/2001 | 13.54 | (0.20 | ) | (2.96 | ) | (3.16 | ) | — | — | — | |||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 13.82 | 0.01 | 1.15 | 1.16 | — | — | 0.00 | (a) | |||||||||||||||||||||||
Year ended 12/31/2005 | 12.06 | (0.06 | ) | 1.82 | 1.76 | — | — | 0.00 | (a) | ||||||||||||||||||||||
Year ended 12/31/2004 | 10.47 | (0.08 | ) | 1.67 | 1.59 | — | — | 0.00 | (a) | ||||||||||||||||||||||
Year ended 12/31/2003 | 8.24 | (0.08 | ) | 2.28 | 2.20 | — | — | 0.03 | |||||||||||||||||||||||
Year ended 12/31/2002 | 10.40 | (0.09 | ) | (2.07 | ) | (2.16 | ) | — | — | — | |||||||||||||||||||||
Year ended 12/31/2001 | 13.55 | (0.12 | ) | (3.03 | ) | (3.15 | ) | — | — | — | |||||||||||||||||||||
Class K: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 15.03 | 0.07 | 1.25 | 1.32 | (0.09 | ) | — | 0.00 | (a) | ||||||||||||||||||||||
Year ended 12/31/2005 | 13.06 | 0.03 | 1.98 | 2.01 | (0.04 | ) | — | 0.00 | (a) | ||||||||||||||||||||||
Year ended 12/31/2004 | 11.24 | 0.00 | †† | 1.82 | 1.82 | — | — | 0.00 | (a) | ||||||||||||||||||||||
Year ended 12/31/2003 | 8.76 | 0.00 | †† | 2.45 | 2.45 | — | — | 0.03 | |||||||||||||||||||||||
Year ended 12/31/2002 | 10.94 | 0.00 | †† | (2.18 | ) | (2.18 | ) | — | — | — | |||||||||||||||||||||
Period from 5/15/2001††† to 12/31/2001 | 12.96 | (0.04 | ) | (1.98 | ) | (2.02 | ) | — | — | — | |||||||||||||||||||||
The Guardian Baillie Gifford Emerging Markets Fund | |||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 19.28 | 0.10 | 1.86 | 1.96 | (0.03 | ) | $ | (0.48 | ) | 0.00 | (a) | ||||||||||||||||||||
Year ended 12/31/2005 | 14.67 | 0.10 | 5.61 | 5.71 | (0.05 | ) | (1.05 | ) | 0.00 | (a) | |||||||||||||||||||||
Year ended 12/31/2004 | 12.39 | 0.05 | 2.85 | 2.90 | (0.03 | ) | (0.59 | ) | 0.00 | (a) | |||||||||||||||||||||
Year ended 12/31/2003 | 8.07 | 0.05 | 4.27 | 4.32 | — | — | — | ||||||||||||||||||||||||
Year ended 12/31/2002 | 8.45 | 0.01 | (0.39 | ) | (0.38 | ) | — | — | — | ||||||||||||||||||||||
Year ended 12/31/2001 | 8.31 | 0.01 | 0.13 | 0.14 | — | — | — | ||||||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 17.37 | (0.01 | ) | 1.68 | 1.67 | — | (0.48 | ) | 0.00 | (a) | |||||||||||||||||||||
Year ended 12/31/2005 | 13.39 | (0.04 | ) | 5.07 | 5.03 | — | (1.05 | ) | 0.00 | (a) | |||||||||||||||||||||
Year ended 12/31/2004 | 11.44 | (0.05 | ) | 2.59 | 2.54 | — | (0.59 | ) | 0.00 | (a) | |||||||||||||||||||||
Year ended 12/31/2003 | 7.55 | (0.04 | ) | 3.93 | 3.89 | — | — | — | |||||||||||||||||||||||
Year ended 12/31/2002 | 7.98 | (0.10 | ) | (0.33 | ) | (0.43 | ) | — | — | — | |||||||||||||||||||||
Year ended 12/31/2001 | 7.97 | (0.10 | ) | 0.11 | 0.01 | — | — | — | |||||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 17.44 | 0.02 | 1.66 | 1.68 | — | (0.48 | ) | 0.00 | (a) | ||||||||||||||||||||||
Year ended 12/31/2005 | 13.43 | 0.00 | †† | 5.06 | 5.06 | — | (1.05 | ) | 0.00 | (a) | |||||||||||||||||||||
Year ended 12/31/2004 | 11.47 | (0.06 | ) | 2.61 | 2.55 | — | (0.59 | ) | 0.00 | (a) | |||||||||||||||||||||
Year ended 12/31/2003 | 7.56 | (0.04 | ) | 3.95 | 3.91 | — | — | — | |||||||||||||||||||||||
Year ended 12/31/2002 | 8.00 | (0.09 | ) | (0.35 | ) | (0.44 | ) | — | — | — | |||||||||||||||||||||
Year ended 12/31/2001 | 7.98 | (0.09 | ) | 0.11 | 0.02 | — | — | — | |||||||||||||||||||||||
Class K: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 18.88 | 0.05 | 1.83 | 1.88 | (0.02 | ) | (0.48 | ) | 0.00 | (a) | |||||||||||||||||||||
Year ended 12/31/2005 | 14.39 | 0.07 | 5.47 | 5.54 | — | (1.05 | ) | 0.00 | (a) | ||||||||||||||||||||||
Year ended 12/31/2004 | 12.19 | 0.01 | 2.79 | 2.80 | (0.01 | ) | (0.59 | ) | 0.00 | (a) | |||||||||||||||||||||
Year ended 12/31/2003 | 7.97 | 0.03 | 4.19 | 4.22 | — | — | — | ||||||||||||||||||||||||
Year ended 12/31/2002 | 8.36 | (0.03 | ) | (0.36 | ) | (0.39 | ) | — | — | — | |||||||||||||||||||||
Period from 5/15/2001††† to 12/31/2001 | 8.35 | (0.06 | ) | 0.07 | 0.01 | — | — | — |
† Unaudited.
†† Rounds to less than $0.01.
††† Commencement of operations.
* Excludes the effect of sales load.
(a) Rounds to less than $0.01.
(b) Not annualized.
(c) Annualized.
96
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net Asset Value, End of Period | Total Return* | Net Assets, End of Period (000's Omitted) | Expenses to Average Net Assets | Net Investment Income/(Loss) to Average Net Assets | Portfolio Turnover Rate | ||||||||||||||||||||||
The Guardian Baillie Gifford International Growth Fund | |||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | $ | 16.54 | 8.94 | %(b) | $ | 44,705 | 1.74 | %(c) | 1.21 | %(c) | 17 | % | |||||||||||||||
Year ended 12/31/2005 | 15.28 | 15.63 | 39,786 | 1.86 | 0.48 | 28 | |||||||||||||||||||||
Year ended 12/31/2004 | 13.26 | 16.34 | 35,106 | 1.94 | 0.13 | 24 | |||||||||||||||||||||
Year ended 12/31/2003 | 11.43 | 28.57 | 32,126 | 1.93 | 0.50 | 44 | |||||||||||||||||||||
Year ended 12/31/2002 | 8.90 | (19.75 | ) | 47,948 | 1.62 | 0.29 | 45 | ||||||||||||||||||||
Year ended 12/31/2001 | 11.09 | (22.34 | ) | 80,856 | 1.53 | 0.06 | 63 | ||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 14.87 | 8.22 | (b) | 5,325 | 2.97 | (c) | (0.07 | )(c) | 17 | ||||||||||||||||||
Year ended 12/31/2005 | 13.74 | 14.31 | 5,518 | 3.05 | (0.64 | ) | 28 | ||||||||||||||||||||
Year ended 12/31/2004 | 12.02 | 15.02 | 6,307 | 3.08 | (0.98 | ) | 24 | ||||||||||||||||||||
Year ended 12/31/2003 | 10.45 | 27.13 | 6,535 | 3.19 | (1.00 | ) | 44 | ||||||||||||||||||||
Year ended 12/31/2002 | 8.22 | (20.81 | ) | 5,598 | 2.87 | (0.98 | ) | 45 | |||||||||||||||||||
Year ended 12/31/2001 | 10.38 | (23.34 | ) | 8,228 | 2.62 | (1.05 | ) | 63 | |||||||||||||||||||
Class C: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 14.98 | 8.39 | (b) | 8,206 | 2.67 | (c) | 0.26 | (c) | 17 | ||||||||||||||||||
Year ended 12/31/2005 | 13.82 | 14.59 | 7,660 | 2.81 | (0.48 | ) | 28 | ||||||||||||||||||||
Year ended 12/31/2004 | 12.06 | 15.19 | 6,687 | 2.95 | (0.89 | ) | 24 | ||||||||||||||||||||
Year ended 12/31/2003 | 10.47 | 27.06 | 5,546 | 3.10 | (0.93 | ) | 44 | ||||||||||||||||||||
Year ended 12/31/2002 | 8.24 | (20.77 | ) | 4,381 | 2.85 | (0.99 | ) | 45 | |||||||||||||||||||
Year ended 12/31/2001 | 10.40 | (23.25 | ) | 5,530 | 2.60 | (1.04 | ) | 63 | |||||||||||||||||||
Class K: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 16.26 | 8.81 | (b) | 12,591 | 1.98 | (c) | 0.94 | (c) | 17 | ||||||||||||||||||
Year ended 12/31/2005 | 15.03 | 15.42 | 10,804 | 2.06 | 0.25 | 28 | |||||||||||||||||||||
Year ended 12/31/2004 | 13.06 | 16.19 | 8,792 | 2.04 | 0.00 | (a) | 24 | ||||||||||||||||||||
Year ended 12/31/2003 | 11.24 | 28.31 | 6,979 | 2.13 | 0.04 | 44 | |||||||||||||||||||||
Year ended 12/31/2002 | 8.76 | (19.93 | ) | 5,407 | 1.86 | 0.01 | 45 | ||||||||||||||||||||
Period from 5/15/2001††† to 12/31/2001 | 10.94 | (15.59 | )(b) | 6,753 | 1.84 | (c) | (0.60 | )(c) | 63 | ||||||||||||||||||
The Guardian Baillie Gifford Emerging Markets Fund | |||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 20.73 | 10.51 | (b) | 132,138 | 1.67 | (c) | 0.89 | (c) | 32 | ||||||||||||||||||
Year ended 12/31/2005 | 19.28 | 39.83 | 121,194 | 1.78 | 0.78 | 38 | |||||||||||||||||||||
Year ended 12/31/2004 | 14.67 | 23.53 | 61,975 | 1.88 | 0.42 | 71 | |||||||||||||||||||||
Year ended 12/31/2003 | 12.39 | 53.53 | 43,561 | 2.10 | 0.57 | 74 | |||||||||||||||||||||
Year ended 12/31/2002 | 8.07 | (4.50 | ) | 27,356 | 2.10 | (0.04 | ) | 81 | |||||||||||||||||||
Year ended 12/31/2001 | 8.45 | 1.68 | 19,777 | 2.39 | (0.19 | ) | 101 | ||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 18.56 | 9.99 | (b) | 14,148 | 2.58 | (c) | (0.02 | )(c) | 32 | ||||||||||||||||||
Year ended 12/31/2005 | 17.37 | 38.56 | 13,495 | 2.74 | (0.05 | ) | 38 | ||||||||||||||||||||
Year ended 12/31/2004 | 13.39 | 22.28 | 12,138 | 2.90 | (0.58 | ) | 71 | ||||||||||||||||||||
Year ended 12/31/2003 | 11.44 | 51.52 | 9,389 | 3.20 | (0.54 | ) | 74 | ||||||||||||||||||||
Year ended 12/31/2002 | 7.55 | (5.39 | ) | 5,965 | 3.21 | (1.16 | ) | 81 | |||||||||||||||||||
Year ended 12/31/2001 | 7.98 | 0.13 | 6,023 | 3.51 | (1.28 | ) | 101 | ||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 18.64 | 10.00 | (b) | 21,104 | 2.51 | (c) | 0.07 | (c) | 32 | ||||||||||||||||||
Year ended 12/31/2005 | 17.44 | 38.68 | 17,895 | 2.68 | (0.06 | ) | 38 | ||||||||||||||||||||
Year ended 12/31/2004 | 13.43 | 22.30 | 12,291 | 2.85 | (0.55 | ) | 71 | ||||||||||||||||||||
Year ended 12/31/2003 | 11.47 | 51.72 | 9,540 | 3.17 | (0.51 | ) | 74 | ||||||||||||||||||||
Year ended 12/31/2002 | 7.56 | (5.50 | ) | 6,306 | 3.12 | (1.08 | ) | 81 | |||||||||||||||||||
Year ended 12/31/2001 | 8.00 | 0.25 | 6,486 | 3.34 | (1.12 | ) | 101 | ||||||||||||||||||||
Class K: | |||||||||||||||||||||||||||
Six months ended 6/30/2006† | 20.26 | 10.33 | (b) | 25,766 | 2.01 | (c) | 0.55 | (c) | 32 | ||||||||||||||||||
Year ended 12/31/2005 | 18.88 | 39.44 | 22,522 | 2.12 | 0.49 | 38 | |||||||||||||||||||||
Year ended 12/31/2004 | 14.39 | 23.16 | 15,202 | 2.19 | 0.12 | 71 | |||||||||||||||||||||
Year ended 12/31/2003 | 12.19 | 52.95 | 11,803 | 2.38 | 0.29 | 74 | |||||||||||||||||||||
Year ended 12/31/2002 | 7.97 | (4.67 | ) | 7,685 | 2.36 | (0.32 | ) | 81 | |||||||||||||||||||
Period from 5/15/2001††† to 12/31/2001 | 8.36 | 0.12 | (b) | 8,020 | 2.63 | (c) | (1.23 | )(c) | 101 |
97
n The Park Avenue Portfolio
Financial Highlights (Continued)
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
Net Asset Value, Beginning of Period | Net Investment Income | Net Realized & Unrealized Gain/(Loss) on Investments | Increase/ (Decrease) from Investment Operations | Dividends from Net Investment Income | Distributions from Net Realized Gain on Investments | Net Asset Value, End of Period | |||||||||||||||||||||||||
The Guardian Investment Quality Bond Fund | |||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | $ | 9.76 | $ | 0.21 | $ | (0.30 | ) | $ | (0.09 | ) | $ | (0.21 | ) | $ | (0.03 | ) | $ | 9.43 | |||||||||||||
Year ended 12/31/2005 | 10.02 | 0.38 | (0.18 | ) | 0.20 | (0.38 | ) | (0.08 | ) | 9.76 | |||||||||||||||||||||
Year ended 12/31/2004 | 10.09 | 0.38 | 0.03 | 0.41 | (0.38 | ) | (0.10 | ) | 10.02 | ||||||||||||||||||||||
Year ended 12/31/2003 | 10.28 | 0.35 | 0.11 | 0.46 | (0.35 | ) | (0.30 | ) | 10.09 | ||||||||||||||||||||||
Year ended 12/31/2002 | 9.86 | 0.44 | 0.45 | 0.89 | (0.44 | ) | (0.03 | ) | 10.28 | ||||||||||||||||||||||
Year ended 12/31/2001 | 9.61 | 0.50 | 0.30 | 0.80 | (0.50 | ) | (0.05 | ) | 9.86 | ||||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 9.76 | 0.17 | (0.30 | ) | (0.13 | ) | (0.17 | ) | (0.03 | ) | 9.43 | ||||||||||||||||||||
Year ended 12/31/2005 | 10.01 | 0.31 | (0.17 | ) | 0.14 | (0.31 | ) | (0.08 | ) | 9.76 | |||||||||||||||||||||
Year ended 12/31/2004 | 10.09 | 0.30 | 0.02 | 0.32 | (0.30 | ) | (0.10 | ) | 10.01 | ||||||||||||||||||||||
Year ended 12/31/2003 | 10.28 | 0.27 | 0.11 | 0.38 | (0.27 | ) | (0.30 | ) | 10.09 | ||||||||||||||||||||||
Year ended 12/31/2002 | 9.86 | 0.37 | 0.45 | 0.82 | (0.37 | ) | (0.03 | ) | 10.28 | ||||||||||||||||||||||
Year ended 12/31/2001 | 9.60 | 0.43 | 0.31 | 0.74 | (0.43 | ) | (0.05 | ) | 9.86 | ||||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 9.76 | 0.17 | (0.30 | ) | (0.13 | ) | (0.17 | ) | (0.03 | ) | 9.43 | ||||||||||||||||||||
Year ended 12/31/2005 | 10.01 | 0.31 | (0.17 | ) | 0.14 | (0.31 | ) | (0.08 | ) | 9.76 | |||||||||||||||||||||
Year ended 12/31/2004 | 10.09 | 0.30 | 0.02 | 0.32 | (0.30 | ) | (0.10 | ) | 10.01 | ||||||||||||||||||||||
Year ended 12/31/2003 | 10.28 | 0.27 | 0.11 | 0.38 | (0.27 | ) | (0.30 | ) | 10.09 | ||||||||||||||||||||||
Year ended 12/31/2002 | 9.86 | 0.37 | 0.45 | 0.82 | (0.37 | ) | (0.03 | ) | 10.28 | ||||||||||||||||||||||
Year ended 12/31/2001 | 9.60 | 0.43 | 0.31 | 0.74 | (0.43 | ) | (0.05 | ) | 9.86 | ||||||||||||||||||||||
Class K: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 9.77 | 0.19 | (0.30 | ) | (0.11 | ) | (0.19 | ) | (0.03 | ) | 9.44 | ||||||||||||||||||||
Year ended 12/31/2005 | 10.03 | 0.34 | (0.18 | ) | 0.16 | (0.34 | ) | (0.08 | ) | 9.77 | |||||||||||||||||||||
Year ended 12/31/2004 | 10.10 | 0.34 | 0.03 | 0.37 | (0.34 | ) | (0.10 | ) | 10.03 | ||||||||||||||||||||||
Year ended 12/31/2003 | 10.29 | 0.31 | 0.11 | 0.42 | (0.31 | ) | (0.30 | ) | 10.10 | ||||||||||||||||||||||
Year ended 12/31/2002 | 9.87 | 0.40 | 0.45 | 0.85 | (0.40 | ) | (0.03 | ) | 10.29 | ||||||||||||||||||||||
Period from 5/15/2001†† to 12/31/2001 | 9.68 | 0.28 | 0.24 | 0.52 | (0.28 | ) | (0.05 | ) | 9.87 | ||||||||||||||||||||||
The Guardian Low Duration Bond Fund | |||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 9.77 | 0.17 | (0.08 | ) | 0.09 | (0.17 | ) | — | 9.69 | ||||||||||||||||||||||
Year ended 12/31/2005 | 9.93 | 0.29 | (0.16 | ) | 0.13 | (0.29 | ) | — | 9.77 | ||||||||||||||||||||||
Year ended 12/31/2004 | 10.02 | 0.23 | (0.09 | ) | 0.14 | (0.23 | ) | — | 9.93 | ||||||||||||||||||||||
Period from 7/30/2003†† to 12/31/2003 | 10.00 | 0.08 | 0.02 | 0.10 | (0.08 | ) | — | 10.02 | |||||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 9.77 | 0.14 | (0.08 | ) | 0.06 | (0.14 | ) | — | 9.69 | ||||||||||||||||||||||
Year ended 12/31/2005 | 9.93 | 0.22 | (0.16 | ) | 0.06 | (0.22 | ) | — | 9.77 | ||||||||||||||||||||||
Year ended 12/31/2004 | 10.02 | 0.15 | (0.09 | ) | 0.06 | (0.15 | ) | — | 9.93 | ||||||||||||||||||||||
Period from 7/30/2003†† to 12/31/2003 | 10.00 | 0.05 | 0.02 | 0.07 | (0.05 | ) | — | 10.02 | |||||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 9.77 | 0.14 | (0.08 | ) | 0.06 | (0.14 | ) | — | 9.69 | ||||||||||||||||||||||
Year ended 12/31/2005 | 9.93 | 0.22 | (0.16 | ) | 0.06 | (0.22 | ) | — | 9.77 | ||||||||||||||||||||||
Year ended 12/31/2004 | 10.02 | 0.15 | (0.09 | ) | 0.06 | (0.15 | ) | — | 9.93 | ||||||||||||||||||||||
Period from 7/30/2003†† to 12/31/2003 | 10.00 | 0.05 | 0.02 | 0.07 | (0.05 | ) | — | 10.02 | |||||||||||||||||||||||
Class K: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 9.77 | 0.16 | (0.08 | ) | 0.08 | (0.16 | ) | — | 9.69 | ||||||||||||||||||||||
Year ended 12/31/2005 | 9.93 | 0.25 | (0.16 | ) | 0.09 | (0.25 | ) | — | 9.77 | ||||||||||||||||||||||
Year ended 12/31/2004 | 10.02 | 0.19 | (0.09 | ) | 0.10 | (0.19 | ) | — | 9.93 | ||||||||||||||||||||||
Period from 7/30/2003†† to 12/31/2003 | 10.00 | 0.06 | 0.02 | 0.08 | (0.06 | ) | — | 10.02 |
† Unaudited.
†† Commencement of operations.
* Excludes the effect of sales load.
(a) After expenses subsidized by GIS.
(b) Expense ratio includes interest expense associated with reverse repurchase agreements.
(c) Not annualized.
(d) Annualized.
98
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
Total Return* | Net Assets, End of Period (000's Omitted) | Net Expenses to Average Net Assets(a)(b) | Expenses (excluding interest expense) to Average Net Assets(a) | Expenses Subsidized by GIS | Net Investment Income to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||||||||
The Guardian Investment Quality Bond Fund | |||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | (0.96 | )%(c) | $ | 90,496 | 0.86 | %(d) | 0.85 | %(d) | 0.17 | %(d) | 4.33 | %(d) | 75 | % | |||||||||||||||||
Year ended 12/31/2005 | 2.07 | 99,230 | 0.85 | 0.85 | 0.15 | 3.83 | 189 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 4.10 | 105,131 | 0.85 | 0.85 | 0.13 | 3.74 | 233 | ||||||||||||||||||||||||
Year ended 12/31/2003 | 4.53 | 143,536 | 0.85 | 0.85 | 0.11 | 3.40 | 257 | ||||||||||||||||||||||||
Year ended 12/31/2002 | 9.25 | 170,658 | 0.85 | 0.85 | 0.08 | 4.37 | 275 | ||||||||||||||||||||||||
Year ended 12/31/2001 | 8.55 | 144,900 | 0.86 | 0.85 | 0.09 | 5.11 | 414 | ||||||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | (1.33 | )(c) | 12,524 | 1.61 | (d) | 1.60 | (d) | 0.37 | (d) | 3.58 | (d) | 75 | |||||||||||||||||||
Year ended 12/31/2005 | 1.41 | 13,925 | 1.60 | 1.60 | 0.33 | 3.08 | 189 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 3.22 | 16,685 | 1.60 | 1.60 | 0.28 | 2.99 | 233 | ||||||||||||||||||||||||
Year ended 12/31/2003 | 3.75 | 18,374 | 1.60 | 1.60 | 0.27 | 2.65 | 257 | ||||||||||||||||||||||||
Year ended 12/31/2002 | 8.43 | 19,308 | 1.60 | 1.60 | 0.27 | 3.58 | 275 | ||||||||||||||||||||||||
Year ended 12/31/2001 | 7.86 | 13,036 | 1.61 | 1.60 | 0.31 | 4.31 | 414 | ||||||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | (1.33 | )(c) | 9,795 | 1.61 | (d) | 1.60 | (d) | 0.41 | (d) | 3.58 | (d) | 75 | |||||||||||||||||||
Year ended 12/31/2005 | 1.41 | 10,008 | 1.60 | 1.60 | 0.38 | 3.08 | 189 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 3.22 | 11,422 | 1.60 | 1.60 | 0.33 | 2.99 | 233 | ||||||||||||||||||||||||
Year ended 12/31/2003 | 3.75 | 11,206 | 1.60 | 1.60 | 0.35 | 2.66 | 257 | ||||||||||||||||||||||||
Year ended 12/31/2002 | 8.44 | 10,753 | 1.60 | 1.60 | 0.36 | 3.64 | 275 | ||||||||||||||||||||||||
Year ended 12/31/2001 | 7.85 | 9,090 | 1.61 | 1.60 | 0.36 | 4.36 | 414 | ||||||||||||||||||||||||
Class K: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | (1.15 | )(c) | 9,805 | 1.26 | (d) | 1.25 | (d) | 0.15 | (d) | 3.94 | (d) | 75 | |||||||||||||||||||
Year ended 12/31/2005 | 1.67 | 9,251 | 1.25 | 1.25 | 0.12 | 3.43 | 189 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 3.69 | 11,004 | 1.25 | 1.25 | 0.06 | 3.34 | 233 | ||||||||||||||||||||||||
Year ended 12/31/2003 | 4.11 | 9,820 | 1.25 | 1.25 | 0.05 | 3.00 | 257 | ||||||||||||||||||||||||
Year ended 12/31/2002 | 8.81 | 9,213 | 1.25 | 1.25 | 0.03 | 4.00 | 275 | ||||||||||||||||||||||||
Period from 5/15/2001†† to 12/31/2001 | 5.43 | (c) | 8,436 | 1.26 | (d) | 1.25 | (d) | 0.08 | (d) | 4.48 | (d) | 414 | |||||||||||||||||||
The Guardian Low Duration Bond Fund | |||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 0.98 | (c) | 9,501 | 0.80 | (d) | — | 0.75 | (d) | 3.62 | (d) | 41 | ||||||||||||||||||||
Year ended 12/31/2005 | 1.34 | 9,316 | 0.80 | — | 0.73 | 2.95 | 122 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 1.36 | 9,487 | 0.80 | — | 0.69 | 2.25 | 68 | ||||||||||||||||||||||||
Period from 7/30/2003†† to 12/31/2003 | 0.99 | (c) | 8,457 | 0.80 | (d) | — | 1.20 | (d) | 1.87 | (d) | 97 | ||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 0.61 | (c) | 8,248 | 1.55 | (d) | — | 0.77 | (d) | 2.87 | (d) | 41 | ||||||||||||||||||||
Year ended 12/31/2005 | 0.58 | 8,317 | 1.55 | — | 0.75 | 2.20 | 122 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 0.61 | 8,695 | 1.55 | — | 0.70 | 1.51 | 68 | ||||||||||||||||||||||||
Period from 7/30/2003†† to 12/31/2003 | 0.67 | (c) | 7,743 | 1.55 | (d) | — | 1.20 | (d) | 1.11 | (d) | 97 | ||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 0.61 | (c) | 7,763 | 1.55 | (d) | — | 0.79 | (d) | 2.87 | (d) | 41 | ||||||||||||||||||||
Year ended 12/31/2005 | 0.58 | 7,730 | 1.55 | — | 0.77 | 2.20 | 122 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 0.61 | 7,817 | 1.55 | — | 0.73 | 1.51 | 68 | ||||||||||||||||||||||||
Period from 7/30/2003†† to 12/31/2003 | 0.67 | (c) | 7,611 | 1.55 | (d) | — | 1.21 | (d) | 1.11 | (d) | 97 | ||||||||||||||||||||
Class K: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 0.78 | (c) | 9,024 | 1.20 | (d) | — | 0.42 | (d) | 3.23 | (d) | 41 | ||||||||||||||||||||
Year ended 12/31/2005 | 0.93 | 8,428 | 1.20 | — | 0.39 | 2.56 | 122 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 0.96 | 7,718 | 1.20 | — | 0.39 | 1.86 | 68 | ||||||||||||||||||||||||
Period from 7/30/2003†† to 12/31/2003 | 0.82 | (c) | 7,565 | 1.20 | (d) | — | 0.97 | (d) | 1.46 | (d) | 97 |
99
n The Park Avenue Portfolio
Financial Highlights (Continued)
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
Net Realized & Unrealized | Distributions from | ||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income | Gain/(Loss) on Investments and Foreign Currency Related Transactions | Increase/ (Decrease) from Investment Operations | Dividends from Net Investment Income | Net Realized Gain on Investments and Foreign Currency Related Transactions | Redemption Fees | |||||||||||||||||||||||||
The Guardian High Yield Bond Fund | |||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | $ | 7.35 | $ | 0.25 | $ | (0.16 | ) | $ | 0.09 | $ | (0.25 | ) | — | $ | 0.00 | (b) | |||||||||||||||
Year ended 12/31/2005 | 7.58 | 0.47 | (0.23 | ) | 0.24 | (0.47 | ) | — | 0.00 | (b) | |||||||||||||||||||||
Year ended 12/31/2004 | 7.45 | 0.52 | 0.13 | 0.65 | (0.52 | ) | — | 0.00 | (b) | ||||||||||||||||||||||
Year ended 12/31/2003 | 6.69 | 0.54 | 0.76 | 1.30 | (0.54 | ) | — | — | |||||||||||||||||||||||
Year ended 12/31/2002 | 7.19 | 0.55 | (0.50 | ) | 0.05 | (0.55 | ) | — | — | ||||||||||||||||||||||
Year ended 12/31/2001 | 7.66 | 0.69 | (0.47 | ) | 0.22 | (0.69 | ) | — | — | ||||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 7.35 | 0.22 | (0.16 | ) | 0.06 | (0.22 | ) | — | 0.00 | (b) | |||||||||||||||||||||
Year ended 12/31/2005 | 7.57 | 0.42 | (0.22 | ) | 0.20 | (0.42 | ) | — | 0.00 | (b) | |||||||||||||||||||||
Year ended 12/31/2004 | 7.45 | 0.47 | 0.12 | 0.59 | (0.47 | ) | — | 0.00 | (b) | ||||||||||||||||||||||
Year ended 12/31/2003 | 6.69 | 0.48 | 0.76 | 1.24 | (0.48 | ) | — | — | |||||||||||||||||||||||
Year ended 12/31/2002 | 7.18 | 0.50 | (0.49 | ) | 0.01 | (0.50 | ) | — | — | ||||||||||||||||||||||
Year ended 12/31/2001 | 7.66 | 0.64 | (0.48 | ) | 0.16 | (0.64 | ) | — | — | ||||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 7.34 | 0.22 | (0.15 | ) | 0.07 | (0.22 | ) | — | 0.00 | (b) | |||||||||||||||||||||
Year ended 12/31/2005 | 7.57 | 0.42 | (0.23 | ) | 0.19 | (0.42 | ) | — | 0.00 | (b) | |||||||||||||||||||||
Year ended 12/31/2004 | 7.45 | 0.47 | 0.12 | 0.59 | (0.47 | ) | — | 0.00 | (b) | ||||||||||||||||||||||
Year ended 12/31/2003 | 6.69 | 0.48 | 0.76 | 1.24 | (0.48 | ) | — | — | |||||||||||||||||||||||
Year ended 12/31/2002 | 7.18 | 0.50 | (0.49 | ) | 0.01 | (0.50 | ) | — | — | ||||||||||||||||||||||
Year ended 12/31/2001 | 7.65 | 0.64 | (0.47 | ) | 0.17 | (0.64 | ) | — | — | ||||||||||||||||||||||
Class K: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 7.35 | 0.23 | (0.16 | ) | 0.07 | (0.23 | ) | — | 0.00 | (b) | |||||||||||||||||||||
Year ended 12/31/2005 | 7.58 | 0.44 | (0.23 | ) | 0.21 | (0.44 | ) | — | 0.00 | (b) | |||||||||||||||||||||
Year ended 12/31/2004 | 7.45 | 0.49 | 0.13 | 0.62 | (0.49 | ) | — | 0.00 | (b) | ||||||||||||||||||||||
Year ended 12/31/2003 | 6.69 | 0.51 | 0.76 | 1.27 | (0.51 | ) | — | — | |||||||||||||||||||||||
Year ended 12/31/2002 | 7.19 | 0.53 | (0.50 | ) | 0.03 | (0.53 | ) | — | — | ||||||||||||||||||||||
Period from 5/15/2001†† to 12/31/2001 | 7.68 | 0.39 | (0.49 | ) | (0.10 | ) | (0.39 | ) | — | — | |||||||||||||||||||||
The Guardian Tax-Exempt Fund | |||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 9.98 | 0.17 | (0.18 | ) | (0.01 | ) | (0.17 | ) | $ | (0.00 | )(b) | — | |||||||||||||||||||
Year ended 12/31/2005 | 10.19 | 0.36 | 0.05 | 0.41 | (0.36 | ) | (0.26 | ) | — | ||||||||||||||||||||||
Year ended 12/31/2004 | 10.31 | 0.36 | 0.08 | 0.44 | (0.36 | ) | (0.20 | ) | — | ||||||||||||||||||||||
Year ended 12/31/2003 | 10.51 | 0.37 | 0.18 | 0.55 | (0.37 | ) | (0.38 | ) | — | ||||||||||||||||||||||
Year ended 12/31/2002 | 10.09 | 0.40 | 0.61 | 1.01 | (0.40 | ) | (0.19 | ) | — | ||||||||||||||||||||||
Year ended 12/31/2001 | 10.10 | 0.41 | 0.06 | 0.47 | (0.41 | ) | (0.07 | ) | — | ||||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 9.98 | 0.14 | (0.18 | ) | (0.04 | ) | (0.14 | ) | (0.00 | )(b) | — | ||||||||||||||||||||
Year ended 12/31/2005 | 10.19 | 0.28 | 0.05 | 0.33 | (0.28 | ) | (0.26 | ) | — | ||||||||||||||||||||||
Year ended 12/31/2004 | 10.31 | 0.28 | 0.08 | 0.36 | (0.28 | ) | (0.20 | ) | — | ||||||||||||||||||||||
Year ended 12/31/2003 | 10.51 | 0.29 | 0.18 | 0.47 | (0.29 | ) | (0.38 | ) | — | ||||||||||||||||||||||
Year ended 12/31/2002 | 10.09 | 0.32 | 0.61 | 0.93 | (0.32 | ) | (0.19 | ) | — | ||||||||||||||||||||||
Year ended 12/31/2001 | 10.10 | 0.34 | 0.06 | 0.40 | (0.34 | ) | (0.07 | ) | — |
† Unaudited.
†† Commencement of operations.
* Excludes the effect of sales load.
(a) After expenses subsidized by GIS.
(b) Rounds to less than $0.01.
(c) Not annualized.
(d) Annualized.
(e) Before offset of custody credits. Including the custody credits in Class A, the expense ratio is 0.85% for each year ended 12/31/2001, 2002, 2003, 2004, 2005 and for the six months ended 6/30/2006; in Class C the expense ratio is 1.60% for each year ended 12/31/2001, 2002, 2003, 2004 and 2005 and for the six months ended 6/30/2006.
100
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
Net Asset Value, End of Period | Total Return* | Net Assets, End of Period (000's Omitted) | Net Expenses to Average Net Assets(a) | Expenses Subsidized by GIS | Net Investment Income to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||||||||
The Guardian High Yield Bond Fund | |||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | $ | 7.19 | 1.18 | %(c) | $ | 45,448 | 0.85 | %(d) | 0.36 | %(d) | 6.81 | %(d) | 41 | % | |||||||||||||||||
Year ended 12/31/2005 | 7.35 | 3.34 | 48,246 | 0.85 | 0.34 | 6.38 | 89 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 7.58 | 9.15 | 57,250 | 0.85 | 0.34 | 7.00 | 95 | ||||||||||||||||||||||||
Year ended 12/31/2003 | 7.45 | 20.11 | 42,589 | 0.85 | 0.42 | 7.59 | 153 | ||||||||||||||||||||||||
Year ended 12/31/2002 | 6.69 | 0.96 | 33,894 | 0.85 | 0.45 | 8.17 | 69 | ||||||||||||||||||||||||
Year ended 12/31/2001 | 7.19 | 2.87 | 33,797 | 0.85 | 0.47 | 9.21 | 141 | ||||||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 7.19 | 0.80 | (c) | 9,644 | 1.60 | (d) | 0.61 | (d) | 6.06 | (d) | 41 | ||||||||||||||||||||
Year ended 12/31/2005 | 7.35 | 2.70 | 9,874 | 1.60 | 0.59 | 5.63 | 89 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 7.57 | 8.20 | 10,013 | 1.60 | 0.62 | 6.30 | 95 | ||||||||||||||||||||||||
Year ended 12/31/2003 | 7.45 | 19.22 | 10,018 | 1.60 | 0.72 | 6.85 | 153 | ||||||||||||||||||||||||
Year ended 12/31/2002 | 6.69 | 0.35 | 8,336 | 1.60 | 0.77 | 7.42 | 69 | ||||||||||||||||||||||||
Year ended 12/31/2001 | 7.18 | 1.96 | 8,182 | 1.60 | 0.78 | 8.42 | 141 | ||||||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 7.19 | 0.94 | (c) | 10,464 | 1.60 | (d) | 0.57 | (d) | 6.06 | (d) | 41 | ||||||||||||||||||||
Year ended 12/31/2005 | 7.34 | 2.56 | 10,463 | 1.60 | 0.55 | 5.63 | 89 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 7.57 | 8.20 | 10,110 | 1.60 | 0.59 | 6.29 | 95 | ||||||||||||||||||||||||
Year ended 12/31/2003 | 7.45 | 19.22 | 9,316 | 1.60 | 0.71 | 6.85 | 153 | ||||||||||||||||||||||||
Year ended 12/31/2002 | 6.69 | 0.35 | 7,710 | 1.60 | 0.77 | 7.42 | 69 | ||||||||||||||||||||||||
Year ended 12/31/2001 | 7.18 | 2.09 | 7,657 | 1.60 | 0.71 | 8.43 | 141 | ||||||||||||||||||||||||
Class K: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 7.19 | 0.98 | (c) | 12,191 | 1.25 | (d) | 0.30 | (d) | 6.41 | (d) | 41 | ||||||||||||||||||||
Year ended 12/31/2005 | 7.35 | 2.93 | 11,772 | 1.25 | 0.27 | 5.98 | 89 | ||||||||||||||||||||||||
Year ended 12/31/2004 | 7.58 | 8.72 | 10,734 | 1.25 | 0.28 | 6.64 | 95 | ||||||||||||||||||||||||
Year ended 12/31/2003 | 7.45 | 19.63 | 9,581 | 1.25 | 0.33 | 7.20 | 153 | ||||||||||||||||||||||||
Year ended 12/31/2002 | 6.69 | 0.55 | 7,944 | 1.25 | 0.35 | 7.77 | 69 | ||||||||||||||||||||||||
Period from 5/15/2001†† to 12/31/2001 | 7.19 | (1.31 | )(c) | 7,893 | 1.25 | (d) | 0.41 | (d) | 8.36 | (d) | 141 | ||||||||||||||||||||
The Guardian Tax-Exempt Fund | |||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 9.80 | (0.02 | )(c) | 88,154 | 0.86 | (d)(e) | 0.09 | (d) | 3.54 | (d) | 73 | ||||||||||||||||||||
Year ended 12/31/2005 | 9.98 | 4.02 | 86,515 | 0.86 | (e) | 0.10 | 3.48 | 160 | |||||||||||||||||||||||
Year ended 12/31/2004 | 10.19 | 4.38 | 82,118 | 0.87 | (e) | 0.09 | 3.49 | 161 | |||||||||||||||||||||||
Year ended 12/31/2003 | 10.31 | 5.34 | 80,025 | 0.89 | (e) | 0.09 | 3.52 | 68 | |||||||||||||||||||||||
Year ended 12/31/2002 | 10.51 | 10.20 | 113,852 | 0.87 | (e) | 0.06 | 3.85 | 99 | |||||||||||||||||||||||
Year ended 12/31/2001 | 10.09 | 4.78 | 107,676 | 0.91 | (e) | 0.09 | 4.03 | 181 | |||||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||
Six months ended 6/30/2006† | 9.80 | (0.39 | )(c) | 10,946 | 1.61 | (d)(e) | 0.32 | (d) | 2.79 | (d) | 73 | ||||||||||||||||||||
Year ended 12/31/2005 | 9.98 | 3.24 | 11,060 | 1.61 | (e) | 0.33 | 2.73 | 160 | |||||||||||||||||||||||
Year ended 12/31/2004 | 10.19 | 3.60 | 10,704 | 1.62 | (e) | 0.33 | 2.74 | 161 | |||||||||||||||||||||||
Year ended 12/31/2003 | 10.31 | 4.54 | 10,553 | 1.64 | (e) | 0.36 | 2.77 | 68 | |||||||||||||||||||||||
Year ended 12/31/2002 | 10.51 | 9.37 | 9,741 | 1.62 | (e) | 0.37 | 3.11 | 99 | |||||||||||||||||||||||
Year ended 12/31/2001 | 10.09 | 3.99 | 8,783 | 1.66 | (e) | 0.37 | 3.28 | 181 |
101
n The Park Avenue Portfolio
Financial Highlights (Continued)
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
Net Asset Value, Beginning of Period | Net Investment Income | Dividends from Net Investment Income | Net Asset Value, End of Period | Total Return* | |||||||||||||||||||
The Guardian Cash Management Fund | |||||||||||||||||||||||
Class A: | |||||||||||||||||||||||
Six months ended 6/30/2006† | $ | 1.000 | $ | 0.019 | $ | (0.019 | ) | $ | 1.000 | 1.94 | %†† | ||||||||||||
Year ended 12/31/2005 | 1.000 | 0.024 | (0.024 | ) | 1.000 | 2.41 | |||||||||||||||||
Year ended 12/31/2004 | 1.000 | 0.006 | (0.006 | ) | 1.000 | 0.57 | |||||||||||||||||
Year ended 12/31/2003 | 1.000 | 0.004 | (0.004 | ) | 1.000 | 0.37 | |||||||||||||||||
Year ended 12/31/2002 | 1.000 | 0.009 | (0.009 | ) | 1.000 | 0.95 | |||||||||||||||||
Year ended 12/31/2001 | 1.000 | 0.032 | (0.032 | ) | 1.000 | 3.27 | |||||||||||||||||
Class B: | |||||||||||||||||||||||
Six months ended 6/30/2006† | 1.000 | 0.016 | (0.016 | ) | 1.000 | 1.57 | †† | ||||||||||||||||
Year ended 12/31/2005 | 1.000 | 0.017 | (0.017 | ) | 1.000 | 1.76 | |||||||||||||||||
Year ended 12/31/2004 | 1.000 | 0.006 | (0.006 | ) | 1.000 | 0.57 | |||||||||||||||||
Year ended 12/31/2003 | 1.000 | 0.002 | (0.002 | ) | 1.000 | 0.21 | |||||||||||||||||
Year ended 12/31/2002 | 1.000 | 0.002 | (0.002 | ) | 1.000 | 0.23 | |||||||||||||||||
Year ended 12/31/2001 | 1.000 | 0.025 | (0.025 | ) | 1.000 | 2.48 | |||||||||||||||||
Class C: | |||||||||||||||||||||||
Six months ended 6/30/2006† | 1.000 | 0.016 | (0.016 | ) | 1.000 | 1.57 | †† | ||||||||||||||||
Year ended 12/31/2005 | 1.000 | 0.017 | (0.017 | ) | 1.000 | 1.76 | |||||||||||||||||
Year ended 12/31/2004 | 1.000 | 0.006 | (0.006 | ) | 1.000 | 0.57 | |||||||||||||||||
Year ended 12/31/2003 | 1.000 | 0.002 | (0.002 | ) | 1.000 | 0.21 | |||||||||||||||||
Year ended 12/31/2002 | 1.000 | 0.002 | (0.002 | ) | 1.000 | 0.22 | |||||||||||||||||
Year ended 12/31/2001 | 1.000 | 0.025 | (0.025 | ) | 1.000 | 2.48 | |||||||||||||||||
Class K: | |||||||||||||||||||||||
Six months ended 6/30/2006† | 1.000 | 0.017 | (0.017 | ) | 1.000 | 1.74 | †† | ||||||||||||||||
Year ended 12/31/2005 | 1.000 | 0.020 | (0.020 | ) | 1.000 | 2.00 | |||||||||||||||||
Year ended 12/31/2004 | 1.000 | 0.005 | (0.005 | ) | 1.000 | 0.47 | |||||||||||||||||
Year ended 12/31/2003 | 1.000 | 0.002 | (0.002 | ) | 1.000 | 0.18 | |||||||||||||||||
Year ended 12/31/2002 | 1.000 | 0.005 | (0.005 | ) | 1.000 | 0.55 | |||||||||||||||||
Period from 5/15/2001††† to 12/31/2001 | 1.000 | 0.013 | (0.013 | ) | 1.000 | 1.26 | †† |
* Excludes the effect of sales load.
† Unaudited.
†† Not annualized.
††† Commencement of operations.
(a) After expenses subsidized by GIS.
(b) Annualized.
(c) Revised to reflect additional subsidies to maintain a minimum yield threshold.
102
Ratios/Supplemental Data | |||||||||||||||||||
Net Assets, End of Period (000's Omitted) | Net Expenses to Average Net Assets(a) | Expenses Subsidized by GIS | Net Investment Income to Average Net Assets | ||||||||||||||||
The Guardian Cash Management Fund | |||||||||||||||||||
Class A: | |||||||||||||||||||
Six months ended 6/30/2006† | $ | 405,410 | 0.85 | %(b) | 0.06 | %(b) | 3.89 | %(b) | |||||||||||
Year ended 12/31/2005 | 396,012 | 0.85 | 0.06 | 2.37 | |||||||||||||||
Year ended 12/31/2004 | 442,109 | 0.85 | 0.04 | 0.55 | |||||||||||||||
Year ended 12/31/2003 | 529,321 | 0.85 | 0.05 | 0.38 | |||||||||||||||
Year ended 12/31/2002 | 658,159 | 0.85 | 0.02 | 0.94 | |||||||||||||||
Year ended 12/31/2001 | 606,045 | 0.85 | 0.04 | 3.13 | |||||||||||||||
Class B: | |||||||||||||||||||
Six months ended 6/30/2006† | 4,729 | 1.60 | (b) | 0.23 | (b) | 3.13 | (b) | ||||||||||||
Year ended 12/31/2005 | 5,030 | 1.47 | 0.39 | 1.68 | |||||||||||||||
Year ended 12/31/2004 | 8,144 | 0.85 | 0.99 | 0.53 | |||||||||||||||
Year ended 12/31/2003 | 12,498 | 1.03 | (c) | 0.73 | (c) | 0.21 | |||||||||||||
Year ended 12/31/2002 | 18,485 | 1.57 | (c) | 0.16 | (c) | 0.22 | |||||||||||||
Year ended 12/31/2001 | 15,685 | 1.60 | 0.12 | 2.37 | |||||||||||||||
Class C: | |||||||||||||||||||
Six months ended 6/30/2006† | 6,298 | 1.60 | (b) | 0.09 | (b) | 3.14 | (b) | ||||||||||||
Year ended 12/31/2005 | 6,233 | 1.47 | 0.21 | 1.69 | |||||||||||||||
Year ended 12/31/2004 | 8,626 | 0.85 | 0.80 | 0.57 | |||||||||||||||
Year ended 12/31/2003 | 9,086 | 1.02 | (c) | 0.63 | (c) | 0.21 | |||||||||||||
Year ended 12/31/2002 | 9,330 | 1.57 | (c) | 0.06 | (c) | 0.22 | |||||||||||||
Year ended 12/31/2001 | 8,492 | 1.60 | 0.04 | 2.47 | |||||||||||||||
Class K: | |||||||||||||||||||
Six months ended 6/30/2006† | 12,359 | 1.25 | (b) | 0.06 | (b) | 3.48 | (b) | ||||||||||||
Year ended 12/31/2005 | 10,083 | 1.25 | 0.07 | 1.96 | |||||||||||||||
Year ended 12/31/2004 | 10,424 | 0.95 | 0.30 | 0.48 | |||||||||||||||
Year ended 12/31/2003 | 9,682 | 1.25 | — | 0.18 | |||||||||||||||
Year ended 12/31/2002 | 8,500 | 1.25 | — | 0.54 | |||||||||||||||
Period from 5/15/2001††† to 12/31/2001 | 8,125 | 1.25 | (b) | 0.01 | (b) | 1.99 | (b) |
103
n The Park Avenue Portfolio
Board Approval of Investment Management Agreements (Unaudited)
The Board of Trustees of the Park Avenue Portfolio (the "Portfolio") approved the renewal of the management agreement for each series of the Portfolio (each a "Fund" and collectively the "Funds") and, as applicable, the subadvisory agreement for each Fund on November 17, 2005. As a part of the renewal process, the Independent Trustees (those Board Members who are not interested persons as defined by the Investment Company Act of 1940) of the Board of Trustees of the Portfolio met independently of Fund management and of the interested Trustees to consider the renewal of: (1) the management agreement ("Management Agreement") between each of the Funds and Guardian Investor Services LLC ("GIS") or as applicable, Guardian Baillie Gifford Limited ("GBG" and together with GIS, each referred to as a "Manager"); (2) as applicable, the subadvisory agreements (each a "Subadvisory Agreement") between GBG and Baillie Gifford Overseas Limited ("BGO") and the subadvisory agreements between GIS and UBS Global Asset Management (Americas) Inc. ("UBS" and together with BGO, each referred to as a "Subadvisor"). (The Management Agreements and the Subadvisory Agreements are together referred to as the "Advisory Agreements.") As part of the review process, the Independent Trustees were represented by independent legal counsel. The Independent Trustees reviewed comprehensive materials received from the Managers, Subadvisors and independent counsel in connection with contract review. The Independent Trustees noted that the Board also received regular information throughout the year regarding performance and operating results of each Fund and that in evaluating the Advisory Agreements, they were taking into account their accumulated experience as Board members in working with the Managers on matters relating to the Funds.
In preparation for the review process, the Independent Trustees met with independent legal counsel and discussed the type and nature of information to be provided and sent a formal request for information to Fund management. The Managers and Subadvisors provided extensive information to all Board members in response to the request. Among other information, the Independent Trustees reviewed materials to assess the services provided by each Manager and Subadvisor, and, as applicable, information comparing the performance, advisory fees and expense ratios of each Fund to other mutual funds, information about the profitability from the Advisory Agreements to the Managers and to the Subadvisors, information about economies of scale and information about the other benefits to the Managers and Subadvisors and their affiliates resulting from their relationship with the Funds ("fall-out benefits"). The Independent Trustees reviewed comparative perfor mance and management fee and expense ratios of peer groups of funds selected by Morningstar, Inc. ("Morningstar"). The Independent Trustees also received a memorandum from independent legal counsel advising them of their duties and responsibilities in connection with the review of the Advisory Agreements. In preparation for the November 17th meeting, the Independent Trustees met on November 3, 2005, to review and discuss with independent legal counsel the information provided by Morningstar.
Based upon their review, the Independent Trustees concluded that it was in the best interest of each Fund to renew each relevant Advisory Agreement and, accordingly, recommended to the full Board of Trustees the renewal of each applicable Advisory Agreement. In reaching this conclusion for each Fund, the Independent Trustees did not identify any single factor or group of factors as all important or controlling and considered all factors together.
Management Agreements
Nature, Quality and Extent of Services. In reviewing the nature, quality and extent of services provided by the Managers, the Independent Trustees considered the services provided by each Manager under the Management Agreements, including administrative services. The Independent Trustees considered the experience and skills of senior management responsible for fund operations, the experience and skills of the personnel performing the functions under each Management Agreement and the resources made available to such personnel, the ability of the Managers to attract and retain high-quality personnel, and the organizational depth of the Managers. The Independent Trustees concluded that appropriate resources were provided under each Management Agreement. The Independent Trustees also considered the delegation of day-to-day portfolio management responsibility to UBS w ith respect to the Guardian UBS Large Cap Value Fund and the Guardian UBS Small Cap Value Fund and to BGO with respect to the Guardian Baillie Gifford International Growth Fund and the Guardian Baillie Gifford Emerging Markets Fund and the Managers' ability to supervise the activities of the Subadvisors. The Independent Trustees concluded each Manager's supervisory program was satisfactory. The Independent Trustees also considered the compliance program established by the Managers and the level of compliance attained by the Managers. Further, the Independent Trustees considered that each Manager has had a long-term relationship with the Funds and has
104
n The Park Avenue Portfolio
Board Approval of Investment Management Agreements (Unaudited) (Continued)
demonstrated its past and future commitment to support the Funds. The Independent Trustees concluded that a long-term relationship with a capable, conscientious adviser was in the best interests of each Fund. Based upon all relevant factors, the Independent Trustees concluded that the nature, quality and extent of the services provided by the Managers to each applicable Fund were satisfactory.
Investment Performance. The Independent Trustees reviewed each Fund's investment performance over short-term (one-year) and longer-term (three year, five year and ten year) periods, as applicable, and compared those returns to various agreed-upon performance measures, including market indices and peer groups. The Independent Trustees received comparative performance information prepared by Morningstar. The Independent Trustees also considered whether investment results were consistent with a Fund's investment objective(s) and policies. For most Funds, the Independent Trustees concluded that investment performance met acceptable levels of investment performance. For Funds that experienced underperformance, the Independent Trustees reviewed the reasons for the underperformance and the remedial measures taken by the Manager to improve performance. The Independent Tr ustees concluded that the Managers have in place an effective process to monitor performance and that reasonable steps had been implemented to address circumstances of underperformance where appropriate. Therefore, the Independent Trustees concluded that it was in the best interests of the Funds to renew the Management Agreements and to continue to closely monitor performance with a particular emphasis on those Funds experiencing underperformance.
Fees and Expenses. The Independent Trustees considered each Fund's management fees and net expense ratios. The Independent Trustees received information, based on data supplied by Morningstar, comparing each Fund's management fee rates and total net expense ratio to advisory fees and total net expense ratios of the mutual funds in its peer group (as selected by Morningstar). The Independent Trustees also received and considered information on fee waivers and/or reimbursements for each Fund compared to those of its peer group. The Independent Trustees noted that a number of the Funds have received fee waivers for many years and that such fee waivers remained current through the time of the review process.
The Independent Trustees also compared each Fund's management fee rates to fees charged by the Manager for comparable mutual funds. For each Fund, the Independent Trustees reviewed the fees charged by other advisors for mutual funds in the Fund's peer group. GIS provided information on the advisory fees it charges its two institutional accounts and noted the information was not comparable with the Funds because the investment objectives and management style of the institutional accounts were very different than those of the Funds. GBG has no clients other than the Funds.
On the basis of all information provided, the Independent Trustees concluded that the management fee schedules for each Fund were reasonable and appropriate in light of the nature, quality and extent of services provided by the Manager.
Profitability. The Independent Trustees reviewed detailed information regarding revenues received by each Manager under each Management Agreement, including identification of the estimated direct and indirect costs of the Managers of providing those services to each Fund that are covered under the Management Agreements. The Independent Trustees also received information regarding the enterprise-wide profitability of the Managers with respect to all fund services in totality.
For all Funds, based upon the profitability percentage provided, the Independent Trustees concluded that the profitability to the applicable Manager from the management of each Fund was not unreasonable.
Economies of Scale. The Independent Trustees considered whether there are economies of scale with respect to the management of each Fund and whether the Funds benefit from any such economies of scale through breakpoints in fees or otherwise. The Independent Trustees noted that the Guardian UBS Small Cap Value Fund and the Guardian Cash Management Fund had management fee schedules that each contained one breakpoint. The Independent Trustees also considered whether the effective management fee rate for each Fund under the Management Agreement is reasonable in relation to the asset size of such Fund. The Independent Trustees noted GIS's representation that it did not anticipate that the Funds would experience any significant economies in the near future, given their asset size. The Independent Trustees concluded that, in light of the Funds' current asset levels, the fee schedule for each Fund reflects an appropriate level of sharing of any economies of scale.
105
n The Park Avenue Portfolio
Board Approval of Investment Management Agreements (Unaudited) (Continued)
Other Benefits to Manager. The Independent Trustees also considered the character and amount of other incidental benefits received by the Managers and their affiliates as a result of their relationship with the Funds. The Independent Trustees noted the Managers' representation that each has the ability to obtain proprietary research as a result of the Funds' brokerage business that may be used for the benefit of the Funds and other clients of the Managers. The Independent Trustees concluded that management fees for each Fund were reasonable in light of these fall-out benefits.
Subadvisory Agreements
Nature, Quality and Extent of Services. The Independent Trustees considered the nature, extent and quality of services provided under each Subadvisory Agreement. The Independent Trustees considered the reputation, qualifications and background of the Subadvisors, the experience and skills of investment personnel responsible for the day-to-day management of each Fund, and the resources made available to such personnel. The Independent Trustees also considered the Subadvisors' compliance with investment policies and general legal compliance. The Independent Trustees concluded that each Subadvisor was providing satisfactory services and recommended that the Subadvisory Agreement for each applicable Fund be continued.
Investment Performance. The Independent Trustees reviewed each Fund's investment performance over short-term (one-year) and, where applicable, longer-term periods, and compared those returns to various agreed-upon performance measures, including market indices and peer groups. Based upon all relevant factors, the Independent Trustees concluded that the investment performance of each subadvised Fund either met acceptable levels of investment performance or, in situations where there was underperformance, the underperformance was not over a long enough period of time to provide a meaningful measure of performance. Therefore, the Independent Trustees concluded, based upon each Fund's particular circumstances, that it was in the best interests of each Fund to renew the Subadvisory Agreements and to continue to closely monitor performance with a particular emphasis on those Funds experiencing underperformance.
Fees and Expenses. The Independent Trustees considered each Fund's subadvisory fees and how they related to the overall management fee structure of each Fund. The Independent Trustees evaluated the competitiveness of the subadvisory fees based upon data supplied by Fund management, which showed each Subadvisor's standard fee schedule for similarly managed institutional accounts. Based on the information provided by Fund management, the Independent Trustees noted that the Subadvisors charged comparable or lower fees for the Funds than their standard fee schedules. The Independent Trustees also considered that the Managers compensate the Subadvisors from their own management fees.
Based upon all of the above, the Independent Trustees determined that the subadvisory fees for each Fund were reasonable.
Profitability. The Independent Trustees received general information with respect to each Subadvisor's profitability. The Independent Trustees noted that the Managers compensate the Subadvisors from their own management fees and that the fees were competitive based on the information provided by the Subadvisors and the Managers. In addition, the Independent Trustees noted that the Subadvisory Agreements with UBS were negotiated at arm's length between GIS and UBS. The Independent Trustees also noted the amount of revenue generated by each Subadvisor from its subadvisory fees. The Independent Trustees reviewed data on the estimated range of profitability to UBS for the Funds it subadvised and concluded that its profitability was not unreasonable. The Independent Trustees took into account the level of revenues and the profitability to the parent entity of BGO as a result of BGO's subadvisory relationship with the Funds it subadvised and concluded that profitability was not unreasonable.
Economies of Scale. The Independent Trustees considered whether there are economies of scale with respect to the subadvisory services provided to each applicable Fund and whether the subadvisory fees reflect such economies of scale through breakpoints in fees or otherwise. The Independent Trustees noted that the Guardian UBS Small Cap Value Fund contained one breakpoint in its subadvisory fee schedule. The Independent Trustees also considered whether the effective subadvisory fee rate for each Fund under the Subadvisory Agreement is reasonable in relation to the asset size of the Fund. The Independent Trustees concluded that the fee schedule for each Fund reflects an appropriate recognition of any economies of scale.
106
n The Park Avenue Portfolio
Board Approval of Investment Management Agreements (Unaudited) (Continued)
Other Benefits to Subadvisors. The Independent Trustees also considered the character and amount of other incidental benefits received by each Subadvisor, including any benefit derived from their affiliation with the Funds. The Independent Trustees considered that UBS may use an affiliate to execute portfolio transactions for the Funds it subadvises, subject to Rule 17e-1 procedures that have been approved by the Board. The Independent Trustees also considered each Subadvisor's soft dollar practices. The Independent Trustees concluded that the fees charged under each Subadvisory Agreement were reasonable in light of these fall-out benefits.
Specific Findings as to each Fund
The Guardian Park Avenue Fund
In determining to recommend renewal of the Fund's Management Agreement, the Independent Trustees noted the investment underperformance over the period reviewed, but considered the steps taken by the Manager to remediate performance, including most recently the hiring of a new lead portfolio manager by the Manager in August 2005. The Independent Trustees noted the favorable historical record of the new portfolio manager, his prior success in remediating a fund, his investment strategy for managing the Fund and the very recent relative improvement in performance following the beginning of the implementation of his investment strategy. The Independent Trustees considered these remedial actions along with the long term support and effective administration of this Fund by the Manager, as well as the Fund's low expense ratio and management fees as compared to its peer group, and concluded that it was appropriate to renew the Management Agreement a nd monitor the impact of the remedial actions.
The Guardian UBS Large Cap Value Fund
In determining to recommend renewal of the Fund's Advisory Agreements, the Independent Trustees noted the favorable relative investment performance over the one-year period reviewed, with performance above the median of its peer group. Although the management fee rate was higher than the median of the Fund's peer group, the Independent Trustees concluded that such fees were within an acceptable range, particularly given the reasonableness of the Fund's expense ratio and the favorable investment performance of the Fund.
The Guardian Park Avenue Small Cap Fund
In determining to recommend renewal of the Fund's Management Agreement, the Independent Trustees noted the favorable relative investment performance of the Fund over the periods reviewed, with performance above the median of its peer group over the short and longer-term periods reviewed, as well as the below median advisory fees and expense ratio.
The Guardian UBS Small Cap Value Fund
In determining to recommend renewal of the Fund's Advisory Agreements, the Independent Trustees concluded that although the Fund experienced slight underperformance relative to its peer group, such performance was within a reasonable range of the peer group average in light of the Fund's satisfactory absolute performance. The Independent Trustees also noted the reasonableness of its management fee rate.
The Guardian Asset Allocation Fund
In determining to recommend renewal of the Fund's Management Agreement, the Independent Trustees concluded that investment performance was satisfactory, falling within a reasonable range of the median of its peer group, and that the management fee rate was within an acceptable range in light of the Fund's net expense ratio.
The Guardian S&P 500 Index Fund
In determining to recommend renewal of the Fund's Management Agreement, the Independent Trustees noted the favorable relative investment performance of the Fund, with performance above the median of its peer group, as well as the reasonableness of its management fee rate.
107
n The Park Avenue Portfolio
Board Approval of Investment Management Agreements (Unaudited) (Continued)
The Guardian Baillie Gifford International Growth Fund
In determining to recommend renewal of the Fund's Advisory Agreements, the Independent Trustees noted the favorable relative investment performance of the Fund, with performance above the median of its peer group, as well as the reasonableness of its management fee rate.
The Guardian Baillie Gifford Emerging Markets Fund
In determining to recommend renewal of the Fund's Advisory Agreements, the Independent Trustees noted the favorable relative investment performance of the Fund, with performance above the median of its peer group, as well as the reasonableness of its management fee rate.
The Guardian Investment Quality Bond Fund
In determining to recommend renewal of the Fund's Management Agreement, the Independent Trustees noted the favorable relative investment performance of the Fund, with performance above the median of its peer group, as well as the reasonableness of its management fee rate.
The Guardian Low Duration Bond Fund
In determining to recommend renewal of the Fund's Management Agreement, the Independent Trustees concluded that investment performance was satisfactory during the short-term period reviewed and that a longer than one-year period was needed to assess performance in comparison to its peer group, and that the management fee rate was reasonable.
The Guardian High Yield Bond Fund
In determining to recommend renewal of the Fund's Management Agreement, the Independent Trustees concluded that investment performance was satisfactory, with performance during more recent periods falling within a reasonable range of the median of its peer group, and that the management fee rate was reasonable.
The Guardian Tax-Exempt Fund
In determining to recommend renewal of the Fund's Management Agreement, the Independent Trustees noted the favorable relative investment performance of the Fund, with performance above the median of its peer group, as well as the reasonableness of its management fee rate.
The Guardian Cash Management Fund
In determining to recommend renewal of the Fund's Management Agreement, the Independent Trustees noted that the Fund pursues an investment strategy that is conservative in nature, even within its peer group of money market funds, with a shorter average portfolio maturity and more limited investment in "second tier" securities. The Independent Trustees noted that, as a result of this strategy, along with the Fund's size and fee structure, the Fund underperforms in comparison to its peer group of funds. They also noted that the Fund's management fee rate is higher than the median for its peer group. However, the Independent Trustees concluded that given the size of the Fund, the subsidies provided by the Manager and the Fund's conservative investment program, performance and the management fees, which include a breakpoint, were reasonable.
Overall Conclusions
Based upon all of the information considered and the conclusions reached, the Independent Trustees determined that the terms of each Advisory Agreement continue to be fair and reasonable and that the continuation of each Advisory Agreement is in the best interests of each Fund.
108
• Trustees
Dennis J. Manning, CLU, ChFC
Frank J. Fabozzi, Ph.D.
Arthur V. Ferrara, CLU
Leo R. Futia, CLU
Anne M. Goggin, Esq.
Sidney I. Lirtzman, Ph.D.
Robert G. Smith, Ph.D.
Kathleen C. Cuocolo
William N. Goetzmann
Steven J. Paggioli
• Officers
Thomas G. Sorell
Leslie A. Barbi
Joseph A. Caruso
Howard W. Chin
Robert J. Crimmins, Jr.
Richard A. Cumiskey
Manind V. Govil
Alexander M. Grant, Jr.
Edward H. Hocknell
Jonathan C. Jankus
Stewart M. Johnson
R. Robin Menzies
Nydia Morrison
Karen L. Olvany
Richard T. Potter, Jr.
Robert A. Reale
Donald P. Sullivan, Jr.
Raman Vardharaj
John H. Walter
Ho Wang
Matthew P. Ziehl
• Investment Adviser & Distributor
Guardian Investor Services LLC
7 Hanover Square
New York, New York 10004
• Custodian of Assets
State Street Bank and Trust Company
Custody Division
1776 Heritage Drive
North Quincy, Massachusetts 02171
• Shareholder Servicing Agent, Transfer Agent & Dividend Paying Agent for State Street Bank and Trust Company
Boston Financial Data Services
Post Office Box 219611
Kansas City, Missouri 64121-9611
• Independent Registered Public Accounting Firm
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
• Proxy Voting Policies and Procedures:
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities, as well as information regarding how each Fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2006, is available without charge upon request by logging on to www.guardianinvestor.com or the Securities and Exchange Commission's ("SEC") website at www.sec.gov.
• Form N-Q:
The Park Avenue Portfolio files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each year on the Form N-Q. The Portfolio's Forms N-Q are available on the SEC's Internet site at www.sec.gov, and can be reviewed and copied at the SEC's Public Reference Room in Washington D.C. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330.
• Code of Ethics:
The Park Avenue Portfolio has adopted a code of ethics for its Principal Executive Officer and Principal Financial Officers (the "Code"). The purpose of the Code is to promote, among other things: honest and ethical conduct, including the handling of conflicts of interest; full, fair, accurate, timely and understandable disclosure in reports and documents filed with the SEC; and compliance with applicable laws and regulations. A copy of the Code has been filed with the SEC on Form N-CSR and can be obtained on the SEC's website at www.sec.gov.
Copies for all of the above can also be obtained free of charge by calling 1-800-221-3253 or by writing Guardian Investor Services LLC at 7 Hanover Square, New York, New York 10004. Shares of the Funds are not deposits or obligations of, or guaranteed or endorsed by, any bank or depository institution, nor are they federally insured by the Federal Deposit Insurance Corporation, The Federal Reserve Board, the National Credit Union Association or any other agency. They involve investment risk, including possible loss of principal amount invested.
This report is submitted for the general information of the shareholders of The Park Avenue Portfolio family of mutual funds. This report is not authorized for distribution to the public unless accompanied or preceded by a current prospectus for the funds which comprise The Park Avenue Portfolio. The prospectus contains important information, including fees and expenses. Please read the prospectus carefully before investing or sending money. You should consider the investment objectives, risks, fees and charges of the investment company carefully before investing. For an additional prospectus, which contains this and other information, please contact your investment professional or call Guardian Investor Services LLC at 800-221-3253.
Guardian Investor Services LLC
7 Hanover Square
New York, New York 10004.
EB-011566 (8/06)
Guardian Investor Services LLC
7 Hanover Square
New York, New York 10004
PRSRT STANDARD
U.S. POSTAGE PAID
GUARDIAN
EB-011566 ADP (8/06)
ITEM 2. CODE OF ETHICS.
Not applicable for semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semiannual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Included in response to Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANIES AND AFFILIATED PURCHASES.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant’s certifying officers have evaluated the registrant’s disclosure controls and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.
(b) The registrant’s certifying officers are aware of no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Separate certifications by the registrant’s certifying officers, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
(a)(3) Not applicable.
(b) A certification by the registrant’s certifying officers, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940, is attached.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
The Park Avenue Portfolio | |||
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By: | /s/ Thomas G. Sorell |
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| Thomas G. Sorell | ||
| President of | ||
| The Park Avenue Portfolio | ||
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Date: | September 6, 2006 | ||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Thomas G. Sorell |
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| Thomas G. Sorell | ||
| President of | ||
| The Park Avenue Portfolio | ||
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Date: | September 6, 2006 | ||
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By: | /s/ John H. Walter |
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| John H. Walter | ||
| Vice President and Treasurer of | ||
| The Park Avenue Portfolio | ||
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Date: | September 6, 2006 | ||