First Investors Income Funds N-CSRS Certified semi-annual shareholder report (management investment company)

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 811-3967

FIRST INVESTORS INCOME FUNDS

(Exact name of registrant as specified in charter)

40 Wall Street

New York, NY 10005

(Address of principal executive offices) (Zip code)

Joseph I. Benedek

Foresters Investment Management Company, Inc.

Raritan Plaza I

Edison, NJ 08837-3620

(Name and address of agent for service)

REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:

1-212-858-8000

DATE OF FISCAL YEAR END: SEPTEMBER 30

DATE OF REPORTING PERIOD: MARCH 31, 2018

Item 1. Reports to Stockholders

The semi-annual report to stockholders follows

 

FOREWORD

This report is for the information of the shareholders of the Funds. It is the policy of each Fund described in this report to mail only one copy of a Fund’s prospectus, annual report, semi-annual report and proxy statements to all shareholders who share the same mailing address and share the same last name and have invested in a Fund covered by the same document. You are deemed to consent to this policy unless you specifically revoke this policy and request that separate copies of such documents be mailed to you. In such case, you will begin to receive your own copies within 30 days after our receipt of the revocation. You may request that separate copies of these disclosure documents be mailed to you by writing to us at: Foresters Investor Services, Inc., Raritan Plaza I, Edison, NJ 08837-3620 or calling us at 1-800-423-4026.

You may obtain a free prospectus for any of the Funds by contacting your representative, calling 1-800-423-4026, writing to us at the following address: Foresters Financial Services, Inc., 40 Wall Street, New York, NY 10005, or by visiting our website at www.foresters.com. You should consider the investment objectives, risks, charges and expenses of a Fund carefully before investing. The prospectus contains this and other information about the Fund, and should be read carefully before investing.

An investment in a Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although the Government Cash Management Fund seeks to preserve a net asset value at $1.00 per share, it is possible to lose money by investing in it, just as it is possible to lose money by investing in any of the other Funds. Past performance is no guarantee of future results. There is no guarantee that a Fund’s investment objective will be achieved.

A Statement of Additional Information (“SAI”) for any of the Funds may also be obtained, without charge, upon request by calling 1-800-423-4026, writing to us at our address or by visiting our website listed above. The SAI contains more detailed information about the Funds, including information about its Trustees.

Foresters FinancialTM and ForestersTM are the trade names and trademarks of The Independent Order of Foresters (Foresters), a fraternal benefit society, 789 Don Mills Road, Toronto, Canada M3C 1T9 and its subsidiaries.

Understanding Your Fund’s Expenses (unaudited)

FIRST INVESTORS INCOME FUNDS

FIRST INVESTORS EQUITY FUNDS

As a mutual fund shareholder, you incur two types of costs: (1) transaction costs, including a sales charge (load) on purchase payments (on Class A shares only) and a contingent deferred sales charge on redemptions (on Class B shares and, under certain circumstances when a Class A load was waived, on Class A shares); and (2) ongoing costs, including advisory fees; distribution and service fees (12b-1) (on Class A and Class B shares only); and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000 in each Fund at the beginning of the period, October 1, 2017, and held for the entire six-month period ended March 31, 2018. The calculations assume that no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

Actual Expenses Example:

These amounts help you to estimate the actual expenses that you paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the “Expenses Paid During Period” shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.

To estimate the expenses you paid on your account during this period, simply divide your ending account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number given for your Fund under the heading “Expenses Paid During Period”.

Hypothetical Expenses Example:

These amounts provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio for each class of shares of a Fund, 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 and help you compare your ongoing costs only and do not reflect any transaction costs, such as front-end or contingent deferred sales charges (loads) or account fees that are charged to certain types of accounts, such as an annual custodial fee of $15 for certain IRA accounts and certain other retirement accounts or an annual custodial fee of $30 for 403(b) custodial accounts (subject to exceptions and certain waivers as described in the Funds’ Statement of Additional Information). Therefore, the hypothetical expenses example is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these costs were included, your costs would have been higher.

1

Fund Expenses (unaudited)

BALANCED INCOME FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.15%
Actual		$1,000.00	$1,000.43	$5.74
Hypothetical**		$1,000.00	$1,019.20	$5.79
Advisor Class Shares	0.82%
Actual		$1,000.00	$1,004.11	$4.10
Hypothetical**		$1,000.00	$1,020.84	$4.13
Institutional Class Shares	0.69%
Actual		$1,000.00	$1,005.86	$3.45
Hypothetical**		$1,000.00	$1,021.49	$3.48

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived and/or assumed.
**	Assumed rate of return of 5% before expenses

Portfolio Composition

TOP TEN SECTORS

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

2

Portfolio of Investments

BALANCED INCOME FUND

March 31, 2018

Principal Amount			Security	Value
			CORPORATE BONDS—50.0%
			Aerospace/Defense—.5%
$	25	M	Bombardier, Inc., 8.75%, 12/1/2021 (a)	$	27,531
	200	M	Rolls-Royce, PLC, 3.625%, 10/14/2025 (a)		201,123
	25	M	TransDigm, Inc., 6.5%, 5/15/2025		25,313
					253,967
			Automotive—1.2%
	25	M	American Axle & Manufacturing, Inc., 6.25%, 4/1/2025		25,031
	25	M	Asbury Automotive Group, Inc., 6%, 12/15/2024		25,562
	25	M	Cooper Standard Automotive, Inc., 5.625%, 11/15/2026 (a)		25,000
	55	M	Dana Holding Corp., 5.5%, 12/15/2024		56,100
	500	M	O’Reilly Automotive, Inc., 3.55%, 3/15/2026		489,840
					621,533
			Building Materials—.1%t
	25	M	Building Materials Corp., 5.375%, 11/15/2024 (a)		25,437
	25	M	Griffon Corp., 5.25%, 3/1/2022		25,195
					50,632
			Chemicals—1.5%
	200	M	Agrium, Inc., 3.375%, 3/15/2025		194,456
	25	M	Blue Cube Spinco, Inc., 10%, 10/15/2025		29,500
	25	M	Chemours Co., 6.625%, 5/15/2023		26,344
	25	M	CVR Partners, LP, 9.25%, 6/15/2023 (a)		26,711
	500	M	Dow Chemical Co., 3.5%, 10/1/2024		496,174
	25	M	Rain CII Carbon, LLC, 7.25%, 4/1/2025 (a)		26,500
	30	M	Rayonier AM Products, Inc., 5.5%, 6/1/2024 (a)		29,550
					829,235
			Consumer Non-Durables—.1%
	25	M	Reynolds Group Holdings, Inc., 5.125%, 7/15/2023 (a)		25,274
			Energy—5.9%
	25	M	Blue Racer Midstream, LLC, 6.125%, 11/15/2022 (a)		25,562
	500	M	BP Capital Markets, PLC, 3.216%, 11/28/2023		496,026

3

Portfolio of Investments (continued)

BALANCED INCOME FUND

March 31, 2018

Principal Amount			Security	Value
			Energy (continued)
$	50	M	Endeavor Energy Resources, LP, 5.75%, 1/30/2028 (a)	$	50,000
	500	M	Enterprise Products Operating, 7.55%, 4/15/2038		677,301
	30	M	Exterran Partners, LP, 6%, 10/1/2022		29,925
	25	M	Global Partners, LP, 6.25%, 7/15/2022		25,000
	500	M	Kinder Morgan Energy Partners, LP, 3.45%, 2/15/2023		491,755
	500	M	Magellan Midstream Partners, LP, 5%, 3/1/2026		537,536
	25	M	Matador Resources Co., 6.875%, 4/15/2023		26,063
	25	M	Murphy Oil Corp., 6.875%, 8/15/2024		26,125
	25	M	NGPL Pipeco, LLC, 4.875%, 8/15/2027 (a)		24,719
	25	M	Oasis Petroleum, Inc., 6.875%, 1/15/2023		25,406
	25	M	Parkland Fuel Corp., 6%, 4/1/2026 (a)		25,188
	25	M	PDC Energy, Inc., 6.125%, 9/15/2024		25,625
	25	M	SESI, LLC, 7.75%, 9/15/2024 (a)		25,938
	500	M	Valero Energy Corp., 6.625%, 6/15/2037		633,176
	25	M	Whiting Petroleum Corp., 5.75%, 3/15/2021		25,312
	30	M	WPX Energy, Inc., 5.25%, 9/15/2024		29,700
					3,200,357
			Financial Services—7.1%
	500	M	American International Group, Inc., 3.75%, 7/10/2025		493,118
	200	M	Assured Guaranty U.S. Holding, Inc., 5%, 7/1/2024		213,487
	1,000	M	Brookfield Finance, Inc., 4%, 4/1/2024		1,008,664
	500	M	Ford Motor Credit Co., LLC, 8.125%, 1/15/2020		541,529
	300	M	GE Capital International Funding Services, Ltd., 4.418%, 11/15/2035		293,797
	500	M	General Motors Financial Co., Inc., 5.25%, 3/1/2026		528,935
	250	M	Key Bank NA, 3.4%, 5/20/2026		242,029
	500	M	Travelers Cos., Inc., 4.05%, 3/7/2048		505,992
					3,827,551
			Financials—9.2%
	25	M	Ally Financial, Inc., 8%, 11/1/2031		30,625
			Bank of America Corp.:
	500	M	4.1%, 7/24/2023		516,521
	400	M	5.875%, 2/7/2042		500,047

4

Principal Amount			Security	Value
$	400	M	Capital One Financial Corp., 3.75%, 4/24/2024	$	397,610
	500	M	Citigroup, Inc., 4.3%, 11/20/2026		501,168
	25	M	DAE Funding, LLC, 5%, 8/1/2024 (a)		23,719
	500	M	Deutsche Bank AG, 3.7%, 5/30/2024		483,301
	500	M	Goldman Sachs Group, Inc., 3.625%, 1/22/2023		502,275
			Icahn Enterprises, LP:
	25	M	6.25%, 2/1/2022		25,500
	25	M	6.75%, 2/1/2024		25,531
	400	M	JPMorgan Chase & Co., 6.4%, 5/15/2038		521,981
	25	M	Ladder Capital Finance Holdings, LLLP, 5.25%, 10/1/2025 (a)		23,750
	25	M	LPL Holdings, Inc., 5.75%, 9/15/2025 (a)		24,743
			Morgan Stanley:
	100	M	5.5%, 7/28/2021		106,887
	500	M	4%, 7/23/2025		505,132
	25	M	Springleaf Finance Corp., 7.75%, 10/1/2021		27,156
			U.S. Bancorp:
	200	M	3.6%, 9/11/2024		200,658
	200	M	3.1%, 4/27/2026		191,136
	300	M	Wells Fargo & Co., 5.606%, 1/15/2044		344,714
					4,952,454
			Food/Beverage/Tobacco—1.8%
			Anheuser-Busch InBev Finance, Inc.:
	100	M	3.65%, 2/1/2026		99,573
	200	M	4.7%, 2/1/2036		212,247
	100	M	4.9%, 2/1/2046		108,269
	500	M	Dr. Pepper Snapple Group, Inc., 3.43%, 6/15/2027		479,801
	25	M	Pilgrim’s Pride Corp., 5.75%, 3/15/2025 (a)		24,340
	25	M	Post Holdings, Inc., 5.75%, 3/1/2027 (a)		24,938
					949,168
			Forest Products/Containers—.9%
	450	M	Packaging Corp. of America, 3.4%, 12/15/2027		431,356

5

Portfolio of Investments (continued)

BALANCED INCOME FUND

March 31, 2018

Principal Amount			Security	Value
			Forest Products/Containers (continued)
$	25	M	Sealed Air Corp., 6.875%, 7/15/2033 (a)	$	27,875
					459,231
			Gaming/Leisure—.1%
	25	M	CRC Escrow Issuer, LLC, 5.25%, 10/15/2025 (a)		24,029
	25	M	Golden Nugget, Inc., 6.75%, 10/15/2024 (a)		25,187
	25	M	IRB Holding Corp., 6.75%, 2/15/2026 (a)		24,565
	25	M	Viking Cruises, Ltd., 6.25%, 5/15/2025 (a)		25,125
					98,906
			Health Care—1.2%
	25	M	Centene Corp., 5.625%, 2/15/2021		25,750
	25	M	CHS/Community Health Systems, Inc., 6.25%, 3/31/2023		23,156
	400	M	CVS Health Corp., 3.875%, 7/20/2025		397,152
	25	M	DaVita, Inc., 5.125%, 7/15/2024		24,453
	25	M	HCA, Inc., 6.25%, 2/15/2021		26,313
	25	M	HealthSouth Corp., 5.75%, 11/1/2024		25,531
	25	M	LifePoint Health, Inc., 5.875%, 12/1/2023		25,336
	25	M	Mallinckrodt Finance SB, 5.75%, 8/1/2022 (a)		21,500
	25	M	Molina Healthcare, Inc., 4.875%, 6/15/2025 (a)		23,438
	25	M	Universal Hospital Services, Inc., 7.625%, 8/15/2020		25,313
			Valeant Pharmaceuticals International, Inc.:
	25	M	6.5%, 3/15/2022 (a)		25,906
	25	M	7.25%, 7/15/2022 (a)		25,094
					668,942
			Information Technology—2.3%
	25	M	Alliance Data Systems Corp., 5.375%, 8/1/2022 (a)		25,125
	500	M	Apple, Inc., 2.5%, 2/9/2025		474,495
	25	M	CommScope Technologies, LLC, 6%, 6/15/2025 (a)		26,138
	300	M	Corning, Inc., 7.25%, 8/15/2036		366,605
	300	M	Microsoft Corp., 3.45%, 8/8/2036		293,194
	25	M	Rackspace Hosting, Inc., 8.625%, 11/15/2024 (a)		24,750

6

Principal Amount			Security	Value
$	25	M	Solera, LLC, 10.5%, 3/1/2024 (a)	$	27,938
					1,238,245
			Manufacturing—.1%
	25	M	ATS Automation Tooling Systems, Inc., 6.5%, 6/15/2023 (a)		26,187
	25	M	Grinding Media, Inc., 7.375%, 12/15/2023 (a)		26,313
					52,500
			Media-Broadcasting—1.1%
	500	M	Comcast Corp., 4.25%, 1/15/2033		518,904
	25	M	Nexstar Broadcasting, Inc., 5.625%, 8/1/2024 (a)		24,555
	25	M	Sirius XM Radio, Inc., 6%, 7/15/2024 (a)		25,766
					569,225
			Media-Cable TV—.4%
			CCO Holdings, LLC:
	25	M	5.125%, 2/15/2023		25,225
	25	M	5.875%, 4/1/2024 (a)		25,500
	25	M	Clear Channel Worldwide Holdings, Inc. - Series “A”, 6.5%, 11/15/2022		25,500
	50	M	CSC Holdings, LLC, 6.75%, 11/15/2021		52,187
	25	M	DISH DBS Corp., 5%, 3/15/2023		22,563
	25	M	Gray Television, Inc., 5.875%, 7/15/2026 (a)		24,375
	25	M	Midcontinent Communications & Finance Corp., 6.875%, 8/15/2023 (a)		26,406
	25	M	Radiate Holdco, LLC, 6.875%, 2/15/2023 (a)		24,313
					226,069
			Media-Diversified—.5%
	25	M	Outdoor Americas Capital, LLC, 5.875%, 3/15/2025		25,437
	200	M	Time Warner, Inc., 3.6%, 7/15/2025		194,925
	25	M	Tribune Media Co., 5.875%, 7/15/2022		25,469
					245,831

7

Portfolio of Investments (continued)

BALANCED INCOME FUND

March 31, 2018

Principal Amount			Security	Value
			Metals/Mining—.3%
$	25	M	Big River Steel, LLC, 7.25%, 9/1/2025 (a)	$	26,000
	25	M	Cleveland-Cliffs Inc., 4.875%, 1/15/2024 (a)		24,313
	25	M	Commercial Metals Co., 4.875%, 5/15/2023		24,996
	25	M	HudBay Minerals, Inc., 7.25%, 1/15/2023 (a)		26,063
	25	M	Novelis, Inc., 5.875%, 9/30/2026 (a)		24,563
	30	M	SunCoke Energy Partners, LP, 7.5%, 6/15/2025 (a)		31,050
					156,985
			Real Estate—6.6%
	300	M	Alexandria Real Estate Equities, Inc., 3.95%, 1/15/2028		293,573
	450	M	Boston Properties, LP, 2.75%, 10/1/2026		410,404
	211	M	Digital Realty Trust, LP, 4.75%, 10/1/2025		220,622
	25	M	Equinix, Inc., 5.375%, 4/1/2023		25,656
	200	M	ERP Operating, LP, 3.375%, 6/1/2025		197,659
	300	M	Essex Portfolio, LP, 3.875%, 5/1/2024		302,212
	30	M	Geo Group, Inc., 5.875%, 10/15/2024		29,850
	25	M	Greystar Real Estate Partners, 5.75%, 12/1/2025 (a)		25,000
	50	M	Iron Mountain, Inc., 5.75%, 8/15/2024		48,688
	500	M	Realty Income Corp., 3.25%, 10/15/2022		496,580
	200	M	Simon Property Group, LP, 3.375%, 10/1/2024		197,569
	500	M	Tanger Properties, LP, 3.125%, 9/1/2026		459,332
	300	M	Vornado Realty, LP, 3.5%, 1/15/2025		289,275
			Welltower, Inc.:
	400	M	4%, 6/1/2025		400,296
	140	M	4.25%, 4/1/2026		141,972
					3,538,688
			Retail-General Merchandise—2.5%
			Amazon.com, Inc.:
	200	M	4.8%, 12/5/2034		222,193
	400	M	4.05%, 8/22/2047 (a)		402,023
	25	M	AmeriGas Partners, LP, 5.5%, 5/20/2025		24,250
	500	M	Home Depot, Inc., 5.875%, 12/16/2036		643,728

8

Principal Amount			Security	Value
$	25	M	J.C. Penney Co., Inc., 8.625%, 3/15/2025	$	23,563
	25	M	KFC Holding Co., LLC, 5%, 6/1/2024 (a)		24,906
					1,340,663
			Services—.1%
	50	M	AECOM, 5.125%, 3/15/2027		48,285
	25	M	United Rentals, Inc., 4.625%, 10/15/2025		24,375
					72,660
			Telecommunications—1.2%
	200	M	AT&T, Inc., 5.15%, 3/15/2042		206,767
	25	M	CenturyLink, Inc., 5.8%, 3/15/2022		24,531
	25	M	Cincinnati Bell, Inc., 7%, 7/15/2024 (a)		22,500
	50	M	GCI, Inc., 6.875%, 4/15/2025		52,625
	25	M	Sprint Capital Corp., 6.875%, 11/15/2028		23,375
	300	M	Verizon Communications, Inc., 4.272%, 1/15/2036		288,058
	25	M	Zayo Group, LLC, 6.375%, 5/15/2025		25,969
					643,825
			Transportation—2.1%
	25	M	BCD Acquisition, Inc., 9.625%, 9/15/2023 (a)		27,125
			Burlington Northern Santa Fe, LLC:
	100	M	7%, 12/15/2025		123,122
	400	M	5.15%, 9/1/2043		464,025
	200	M	Cummins, Inc., 4.875%, 10/1/2043		226,442
	300	M	Southwest Airlines Co., 3%, 11/15/2026		282,732
	25	M	XPO Logistics, Inc., 6.5%, 6/15/2022 (a)		25,875
					1,149,321
			Utilities—2.9%
	25	M	Calpine Corp., 5.25%, 6/1/2026 (a)		24,219
	25	M	Cheniere Corpus Christi Holdings, 5.875%, 3/31/2025		26,250
	500	M	Commonwealth Edison Co., 5.9%, 3/15/2036		616,484
	30	M	DCP Midstream, LP, 7.375%, 12/29/2049†		29,944
	200	M	Duke Energy Progress, Inc., 4.15%, 12/1/2044		205,832

9

Portfolio of Investments (continued)

BALANCED INCOME FUND

March 31, 2018

Principal Amount or Shares			Security	Value
			Utilities (continued)
$	500	M	Entergy Arkansas, Inc., 4.95%, 12/15/2044	$	512,914
	25	M	NRG Yield Operating, LLC, 5%, 9/15/2026		24,688
	100	M	Oklahoma Gas & Electric Co., 4%, 12/15/2044		100,978
					1,541,309
			Waste Management—.1%
	25	M	Covanta Holding Corp., 5.875%, 3/1/2024		24,563
	25	M	GFL Environmental, Inc., 5.375%, 3/1/2023 (a)		24,625
					49,188
			Wireless Communications—.2%
	25	M	Intelsat Jackson Holdings SA, 8%, 2/15/2024 (a)		26,344
	25	M	Level 3 Financing, Inc., 5.375%, 1/15/2024		24,422
	25	M	Sprint Communications, Inc., 6%, 11/15/2022		24,594
	25	M	T-Mobile USA, Inc., 6%, 3/1/2023		26,063
					101,423
	Total Value of Corporate Bonds (cost $27,480,658)				26,863,182
			COMMON STOCKS—37.5%
			Consumer Discretionary—3.0%
	4,400		Acushnet Holdings Corp.		101,596
	400		CBS Corp. - Class “B”		20,556
	7,600		DSW, Inc. - Class “A”		170,696
	3,400		Ford Motor Co.		37,672
	3,700		L Brands, Inc.		141,377
	2,400		Meredith Corp.		129,120
	3,900		Nordstrom, Inc.		188,799
	4,900		Tapestry, Inc.		257,789
	4,400		Tupperware Brands Corp.		212,872
	450		Whirlpool Corp.		68,899
	2,300		Wyndham Worldwide Corp.		263,189
					1,592,565

10

Shares		Security	Value
		Consumer Staples—5.0%
	7,800	Altria Group, Inc.	$	486,096
	6,000	B&G Foods, Inc.		142,200
	5,200	Coca-Cola Co.		225,836
	9,100	Koninklijke Ahold Delhaize NV (ADR)		215,852
	3,600	PepsiCo, Inc.		392,940
	5,600	Philip Morris International, Inc.		556,640
	2,350	Procter & Gamble Co.		186,308
	3,700	Sysco Corp.		221,852
	3,200	Wal-Mart Stores, Inc.		284,704
				2,712,428
		Energy—2.8%
	1,700	Chevron Corp.		193,868
	2,350	ExxonMobil Corp.		175,333
	3,400	Marathon Petroleum Corp.		248,574
	1,400	Occidental Petroleum Corp.		90,944
	4,000	PBF Energy, Inc. - Class “A”		135,600
	1,600	Phillips 66		153,472
	2,800	Royal Dutch Shell, PLC - Class “A” (ADR)		178,668
	2,000	Schlumberger, Ltd.		129,560
	5,300	Suncor Energy, Inc.		183,062
				1,489,081
		Financials—4.8%
	2,300	Ameriprise Financial, Inc.		340,262
	3,500	Berkshire Hills Bancorp, Inc.		132,825
	1,300	Chubb, Ltd.		177,801
	4,200	Discover Financial Services		302,106
	3,300	Hamilton Lane, Inc. - Class “A”		122,859
	3,600	JPMorgan Chase & Co.		395,892
	4,500	MetLife, Inc.		206,505
	1,500	PNC Financial Services Group, Inc.		226,860
	4,800	U.S. Bancorp		242,400
	9,800	Waddell & Reed Financial, Inc. - Class “A”		198,058

11

Portfolio of Investments (continued)

BALANCED INCOME FUND

March 31, 2018

Shares		Security	Value
		Financials (continued)
	4,000	Wells Fargo & Co.	$	209,640
				2,555,208
		Health Care—5.0%
	6,200	Abbott Laboratories		371,504
	6,100	AbbVie, Inc.		577,365
	7,300	GlaxoSmithKline, PLC (ADR)		285,211
	3,700	Johnson & Johnson		474,155
	6,700	Koninklijke Philips NV (ADR)		256,677
	4,800	Merck & Co., Inc.		261,456
	13,400	Pfizer, Inc.		475,566
				2,701,934
		Industrials—4.6%
	2,100	3M Co.		460,992
	9,300	General Electric Co.		125,364
	2,600	Honeywell International, Inc.		375,726
	5,664	Johnson Controls International, PLC		199,599
	1,650	Lockheed Martin Corp.		557,584
	3,900	Mobile Mini, Inc.		169,650
	13,300	Triton International, Ltd.		406,980
	1,600	United Technologies Corp.		201,312
				2,497,207
		Information Technology—5.9%
	3,800	Apple, Inc.		637,564
	10,900	Cisco Systems, Inc.		467,501
	5,600	Intel Corp.		291,648
	7,200	Maxim Integrated Products, Inc.		433,584
	8,100	Microsoft Corp.		739,287
	5,600	QUALCOMM, Inc.		310,296
	9,100	Travelport Worldwide, Ltd.		148,694
	1,300	Western Digital Corp.		119,951
				3,148,525

12

Shares		Security	Value
		Materials—1.0%
	4,600	International Paper Co.	$	245,778
	1,350	Praxair, Inc.		194,805
	2,200	RPM International, Inc.		104,874
				545,457
		Real Estate—2.4%
	4,900	Americold Realty Trust (REIT)		93,492
	13,000	Brixmor Property Group, Inc. (REIT)		198,250
	5,000	Chesapeake Lodging Trust (REIT)		139,050
	1,200	Federal Realty Investment Trust (REIT)		139,332
	6,500	GGP, Inc. (REIT)		132,990
	8,304	RLJ Lodging Trust (REIT)		161,430
	10,400	Tanger Factory Outlet Centers, Inc. (REIT)		228,800
	6,000	Urstadt Biddle Properties, Inc. - Class “A” (REIT)		115,800
	9,400	Whitestone REIT (REIT)		97,666
				1,306,810
		Telecommunication Services—1.3%
	10,300	AT&T, Inc.		367,195
	6,800	Verizon Communications, Inc.		325,176
				692,371
		Utilities—1.7%
	3,200	Black Hills Corp.		173,760
	3,800	Duke Energy Corp.		294,386
	3,800	Exelon Corp.		148,238
	6,400	NiSource, Inc.		153,024
	2,500	WEC Energy Group, Inc.		156,750
				926,158
	Total Value of Common Stocks (cost $18,277,019)			20,167,744

13

Portfolio of Investments (continued)

BALANCED INCOME FUND

March 31, 2018

Principal Amount			Security		Value
			RESIDENTIAL MORTGAGE-BACKED SECURITIES—5.4%
			Fannie Mae
$	224	M	3%, 5/1/2029		$	225,097
	900	M	3.5%, 9/1/2045 - 11/1/2046			903,502
	925	M	4%, 11/1/2045 - 7/1/2046			951,860
	747	M	4.5%, 1/1/2047 - 2/1/2048 (b)			785,780
	56	M	5%, 8/1/2039			60,652
	Total Value of Residential Mortgage-Backed Securities (cost $2,980,699)					2,926,891
			PASS-THROUGH CERTIFICATES—.9%
			Transportation
	500	M	American Airlines 17-2 AA PTT, 3.35%, 10/15/2029 (cost $504,010) (a)			486,114
			SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS—4.7%
			Federal Home Loan Bank:
	1,000	M	1.53%, 4/5/2018			999,862
	1,000	M	1.54%, 4/11/2018			999,587
	500	M	1.56%, 4/12/2018			499,771
	Total Value of Short-Term U.S. Government Agency Obligations (cost $2,499,163)					2,499,220
	Total Value of Investments (cost $51,741,549)			98.5%		52,943,151
	Other Assets, Less Liabilities			1.5		819,013
	Net Assets			100.0%	$	53,762,164

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 4).

(b) A portion or all of the security purchased on a when-issued or delayed delivery basis.

† Interest rates are determined and reset periodically. The interest rates above are the rates in effect at March 31, 2018.

14

Summary of Abbreviations:

ADR	American Depositary Receipts
LLLP	Limited Liability Limited Partnership
REIT	Real Estate Investment Trust

Futures contracts outstanding at March 31, 2018:

Number of Contracts	Type	Expiration		Notional Amounts			Value at March 31, 2018			Unrealized Depreciation
(5)	5 Year U.S. Treasury Note	June 2018	$	(569,180	)	$	(572,369	)	$	(3,189	)
(19)	10 Year U.S. Treasury Note	June 2018		(2,275,844	)		(2,301,913	)		(26,069	)
(7)	U.S. Treasury Long Bond	June 2018		(997,828	)		(1,026,464	)		(28,636	)
(Premium received $394)									$	(57,894	)

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

15

Portfolio of Investments (continued)

BALANCED INCOME FUND

March 31, 2018

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1			Level 2		Level 3		Total
Corporate Bonds	$	—		$	26,863,182	$	—	$	26,863,182
Common Stocks		20,167,744			—		—		20,167,744
Residential Mortgage-Backed Securities		—			2,926,891		—		2,926,891
Pass-Through Certificates		—			486,114		—		486,114
Short-Term U.S. Government Agency Obligations		—			2,499,220		—		2,499,220
Total Investments in Securities*	$	20,167,744		$	32,775,407	$	—	$	52,943,151
Liabilities
Futures Contracts	$	(57,500	)	$	—	$	—	$	(57,500	)

* The Portfolio of Investments provides information on the industry categorization for corporate bonds, common stocks and pass-through certificates.

There were no transfers into or from Level 1 and Level 2 by the Fund during the period ended March 31, 2018. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

16

Fund Expenses (unaudited)

FLOATING RATE FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.10%
Actual		$1,000.00	$1,017.01	$5.53
Hypothetical**		$1,000.00	$1,019.45	$5.54
Advisor Class Shares	0.90%
Actual		$1,000.00	$1,016.96	$4.53
Hypothetical**		$1,000.00	$1,020.44	$4.53
Institutional Class Shares	0.70%
Actual		$1,000.00	$1,018.78	$3.52
Hypothetical**		$1,000.00	$1,021.44	$3.53

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived and/or assumed.
**	Assumed rate of return of 5% before expenses

Portfolio Composition

TOP TEN SECTORS

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

17

Portfolio of Investments

FLOATING RATE FUND

March 31, 2018

Principal Amount			Security	Value
			LOAN PARTICIPATIONS†—91.3%
			Aerospace/Defense—.8%
			TransDigm, Inc.:
$	1,342	M	4.3980%, 8/22/2024	$	1,347,859
	344	M	4.6269%, 5/14/2022		345,906
					1,693,765
			Automotive—4.9%
			Dexko Global, Inc.:
	2,985	M	5.802%, 7/24/2024		3,015,791
	500	M	10.552%, 7/24/2025		505,158
	340	M	Horizon Global, 5%, 2/16/2024		336,600
	771	M	Innovative XC, 6.58%, 11/29/2022		781,708
	1,586	M	Key Safety Systems, Inc., 6.28%, 8/29/2021		1,588,429
	1,250	M	Navistar International Corp., 5.21%, 11/6/2024		1,258,075
	1,067	M	Superior Industries International, Inc., 6.3769%, 5/22/2024		1,079,596
			Truck Hero, Inc.:
	1,092	M	6.2225%, 4/22/2024		1,100,391
	500	M	10.4725%, 4/21/2025		503,958
					10,169,706
			Chemicals—5.4%
	1,493	M	Archroma Finance Sarl, 5.9702%, 8/12/2024		1,496,231
	2,993	M	Avantor Performance Materials Holdings, Inc., 5.8769%, 11/21/2024		3,027,811
	2,483	M	ColourOz Investment, 4.7413%, 9/7/2021		2,346,703
			Invictus U.S. Newco, LLC:
	500	M	3%, 2/14/2025		504,500
	1,000	M	6.75%, 2/13/2026		1,017,915
	656	M	Methanol Holdings Trinidad, Ltd., 5.3769%, 6/30/2022		658,899
	1,347	M	PQ Group Holdings, Inc., 4.2907%, 2/8/2025		1,352,934
	945	M	Venator Finance Sarl, 4.8769%, 8/8/2024		950,567
					11,355,560

18

Principal Amount			Security	Value
			Consumer Durables—1.2%
			TGP Holdings III, LLC:
$	122	M	4.25%, 9/25/2024 (a)	$	123,288
	181	M	6%, 9/25/2024 (a)		182,885
	2,198	M	7.3020%, 9/25/2024 (a)		2,219,152
					2,525,325
			Consumer Non-Durables—1.5%
	299	M	Belron International, Ltd, 4.2935%, 11/7/2024		301,494
	1,575	M	Kronos Acquisiton Intermediate, Inc., 5.875%, 5/15/2023		1,592,057
	1,217	M	Reynolds Group Holdings, Inc., 4.6269%, 2/5/2023		1,224,794
					3,118,345
			Energy—.8%
	450	M	California Resources Corp., 6.5721%, 12/31/2022		457,033
	1,287	M	Foresight Energy, LLC, 7.6269%, 3/28/2022		1,260,719
					1,717,752
			Financial Services—5.7%
	2,722	M	Alliant Holdings Intermediate,LLC, 5.1269%, 8/12/2022		2,740,528
	1,835	M	EIG Investors Corp., 5.9563%, 2/9/2023		1,850,541
	2,722	M	NFP Corp., 4.8769%, 1/8/2024		2,736,057
	4,552	M	USI Holdings Corp., 5.302%, 5/16/2024		4,566,920
					11,894,046
			Financials—4.9%
	498	M	Acrisure, LLC, 5.9913%, 11/22/2023		504,754
	1,990	M	AssuredPartners, Inc., 5.3769%, 10/22/2024		1,997,462
	1,318	M	Canyon Valor Cos., Inc., 5.1269%, 6/16/2023		1,330,847
	249	M	Edelman Financial Services, LLC, 5.9702%, 11/11/2024		252,063
			Jaguar Holding Co. I, LLC:
	960	M	4.802%, 8/18/2022		964,266
	871	M	4.37688%, 8/18/2022		874,925
	1,500	M	PI U.K. Holdco II, LLC, 5.3583%, 1/3/2025		1,508,437
	1,750	M	Sigma Bidco BV, 3%, 3/6/2025		1,751,094

19

Portfolio of Investments (continued)

FLOATING RATE FUND

March 31, 2018

Principal Amount			Security	Value
			Financials (continued)
$	1,085	M	VFH Parent, LLC, 4.9447%, 12/30/2021	$	1,096,520
					10,280,368
			Food/Beverage/Tobacco—1.5%
	1,562	M	Chobani, LLC, 5.3769%, 10/10/2023 (a)		1,571,612
	1,000	M	Refresco Group NV, 2.75%, 12/13/2024		998,125
	525	M	Utz Quality Foods, LLC, 5.3538%, 11/21/2024		530,988
					3,100,725
			Forest Products/Containers—2.4%
	1,737	M	BWay Holding Co., 4.9580%, 4/3/2024		1,748,095
	3,270	M	Coveris Holdings SA, 5.582789%, 6/29/2022		3,288,903
					5,036,998
			Gaming/Leisure—11.5%
			AMC Entertainment Holdings, Inc.:
	867	M	4.0266%, 12/15/2022		870,571
	371	M	4.0266%, 12/15/2023		372,256
	3,990	M	Caesars Entertainment Operating Co., Inc., 4.6269%, 12/23/2024		4,019,675
	2,978	M	Cyan Blue Holdco 2, Ltd., 5.052%, 8/23/2024		2,981,259
	2,500	M	Dorna Sports SL, 3.25%, 4/12/2024		2,484,375
	3,865	M	Golden Nugget, Inc., 4.9788%, 10/4/2023		3,902,120
	1,300	M	La Quinta Intermediate Holdings, LLC, 4.4702%, 4/14/2021		1,304,836
			Landry’s, Inc.:
	650	M	5.03893%, 10/4/2023		655,960
	456	M	4.90006%, 10/4/2023		460,229
	1,454	M	Live Nation Entertainment, Inc., 3.4375%, 10/31/2023		1,466,684
	2,400	M	Scientific Games International, 2.75%, 8/14/2024		2,411,256
	860	M	Seminole Hard Rock Entertainment, Inc., 4.4434%, 5/14/2020		867,111
			WorldStrides Lakeland Tours:
	162	M	4%, 12/16/2024		164,348
	1,971	M	6.1245%, 12/16/2024		1,995,649
					23,956,329

20

Principal Amount			Security	Value
			Health Care—8.7%
			Air Medical Group Holdings, Inc.:
$	1,315	M	4.9362%, 4/28/2022	$	1,322,304
	175	M	6.015%, 3/14/2025		176,472
	1,100	M	Air Methods Corp., 5.802%, 4/22/2024		1,105,637
	250	M	Albany Molecular Research, Inc., 8.8769%, 8/30/2025		251,875
	1,985	M	American Renal Holdings, Inc., 5.1269%, 6/21/2024		1,990,578
	900	M	Amneal Pharmaceuticals, LLC, 3.5%, 3/21/2025 (a)		903,375
	375	M	Concentra Operating Corp., 4.53%, 6/1/2022		378,202
	607	M	Envision Healthcare Corp., 4.88%, 12/01/2023		610,361
	1,496	M	Equian Buyer Corp., 5.1539%, 5/20/2024		1,506,054
	987	M	ExamWorks Group, Inc., 5.1269%, 7/27/2023		996,095
	993	M	Geronimo Intermediate Parent, Inc., 5.1269%, 6/22/2023		1,001,810
			Mallinckrodt International Finance SA:
	462	M	5.203%, 9/24/2024		460,902
	500	M	4.82%, 2/24/2025		501,615
	469	M	MPH Acquisition Holdings, LLC, 5.052%, 6/7/2023		471,415
	188	M	Onex Carestream Finance, LP, 5.8769%, 6/7/2019		189,733
	348	M	Parexel International Corp., 4.6269%, 9/27/2024		348,905
			PetVet Care Centers, LLC:
	1,500	M	4.5266%, 1/31/2025		1,490,003
	500	M	8.0266%, 1/31/2026		502,500
	750	M	PharMerica Corp., 5.2113%, 12/6/2024		753,518
	1,485	M	Sterigenics-Nordion Holdings, LLC, 4.8769%, 5/15/2022		1,489,641
	820	M	U.S. Anesthesia Partners Inc., 4.8769%, 6/23/2024		824,672
	756	M	Valeant Pharmaceuticals International, Inc., 5.24%, 4/1/2022		765,002
					18,040,669
			Information Technology—9.1%
	1,671	M	Avast Holdings BV, 5.052%, 9/30/2023		1,682,380
	866	M	Change Heathcare Holdings, Inc., 4.6269%, 3/1/2024		869,295
	970	M	Digicel International Finance, Ltd., 5.02%, 5/27/2024		967,324
	3,275	M	DigiCert Holdings, Inc., 6.5223%, 10/31/2024		3,315,527
	740	M	Hyland Software, Inc., 5.1269%, 7/1/2022		747,166
	1,995	M	ION Trading Technologies, Ltd., 5.052%, 11/21/2024		1,980,038

21

Portfolio of Investments (continued)

FLOATING RATE FUND

March 31, 2018

Principal Amount			Security	Value
			Information Technology (continued)
$	2,313	M	Project Leopard Holdings, Inc., 5.8769%, 7/7/2023	$	2,331,469
	1,450	M	Quest Software U.S. Holdings, Inc., 7.2723%, 10/31/2022		1,479,712
	723	M	Redtop Acquisitions, Ltd., 5.02225%, 12/3/2020		724,724
	1,995	M	Solarwinds, Inc., 4.8769%, 2/5/2024		2,006,232
	2,275	M	SS&C Technologies Holdings, Inc, 2.5%, 2/28/2025		2,290,322
	606	M	Western Digital Corp., 3.8769%, 4/29/2023		609,705
					19,003,894
			Manufacturing—7.5%
	2,000	M	Altran Technologies SA, 4.5721%, 1/31/2025		2,015,830
	2,200	M	AMG Advanced Metallurgical, 3%, 2/3/2025		2,222,000
	3,473	M	Brand Energy & Infrastructure Services, Inc., 6.0012%, 6/21/2024		3,507,619
	997	M	Engineered Machinery Holdings, Inc., 5.552%, 7/19/2024		999,061
	1,350	M	Filtration Group Corp., 3.5%, 3/27/2025 (a)		1,360,125
	992	M	Gardner Denver, Inc., 5.052%, 7/30/2024		998,345
	1,500	M	GrafTech International, Ltd., 5.2396%, 2/12/2025		1,501,876
	2,474	M	HII Holding Corp., 5.12688%, 12/20/2019		2,268,261
	750	M	NCI Building Systems, Inc., 3.8769%, 2/7/2025		750,938
					15,624,055
			Media-Broadcasting—4.4%
	1,216	M	Altice Financing SA, 4.4702%, 7/15/2025		1,196,815
	1,340	M	Altice U.S. Finance I Corp., 4.5223%, 6/22/2025		1,293,535
	124	M	CBS Radio, Inc., 4.6225%, 11/18/2024		125,289
	272	M	Mission Broadcasting, Inc., 4.1642%, 1/17/2024 (a)		273,388
	2,140	M	Nexstar Broadcasting, Inc., 4.1642%, 1/17/2024 (a)		2,150,196
	4,000	M	Sinclair Broadcasting Group, 2.5%, 12/12/2024		4,022,500
					9,061,723
			Media-Cable TV—5.0%
	3,775	M	Atlantic Broadband Finance, LLC, 4.25188%, 8/11/2024		3,780,908
			CSC Holdings, LLC:
	1,857	M	4.0364%, 7/17/2025		1,857,255
	250	M	4.2766%, 1/25/2026		250,820

22

Principal Amount			Security	Value
$	741	M	Gray Television, Inc., 3.9201%, 2/07/2024	$	745,254
	1,739	M	Midcontinent Communications, Inc., 3.9896%, 12/31/2023		1,751,567
	1,493	M	Raycom TV Broadcasting, LLC, 3.8707%, 8/23/2024		1,496,231
	600	M	Ziggo Secured Finance Partnership, 4.2766%, 4/15/2025		596,502
					10,478,537
			Media-Diversified—.2%
	462	M	Tribune Media Co., 4.8769%, 1/26/2024		463,159
			Metals/Mining—2.4%
	1,238	M	Arch Coal, Inc., 5.1269%, 3/7/2024		1,240,594
	1,368	M	Big River Steel, LLC, 7.302%, 8/23/2023		1,390,357
	1,397	M	MRC Global (U.S.), Inc., 5.3869%, 9/20/2024		1,405,228
	846	M	TMS International Corp., 4.6269%, 8/14/2024		849,699
					4,885,878
			Retail-General Merchandise—4.5%
	1,437	M	1011778 B.C., ULC, 4.2937%, 2/16/2024		1,440,135
	1,290	M	BJ’s Wholesale Club, Inc., 5.1905%, 2/3/2024		1,290,734
	907	M	CNT Holdings III Corp., 5.13%, 1/22/2023		881,656
	1,519	M	Harbor Freight Tools USA, Inc., 4.3769%, 8/18/2023		1,522,676
	1,037	M	Party City Holdings, Inc., 4.4874%, 8/19/2022		1,042,124
	1,995	M	Staples, Inc., 5.787%, 9/12/2024		1,979,040
	1,147	M	Varsity Brands, 5.3769%, 12/7/2024		1,158,493
					9,314,858
			Services—.7%
	531	M	GW Honos Security Corp., 5.5106%, 5/24/2024		537,143
	936	M	Monitronics International, Inc., 7.802%, 9/30/2022		914,593
					1,451,736
			Telecommunications—.8%
	1,675	M	Cincinnati Bell, Inc., 5.4447%, 10/2/2024		1,689,656
			Utilities—4.9%
	2,864	M	Calpine Corp., 4.81%, 1/15/2024		2,875,363

23

Portfolio of Investments (continued)

FLOATING RATE FUND

March 31, 2018

Principal Amount			Security	Value
			Utilities (continued)
$	1,570	M	Charah, LLC, 8.1864%, 10/25/2024	$	1,588,644
	1,993	M	Dayton Power & Light Co., 3.88%, 8/24/2022		2,005,279
	1,496	M	ExGen Renewables I, LLC, 4.99%, 11/28/2024		1,514,961
			HD Supply, Inc.:
	626	M	4.552%, 8/13/2021		631,184
	543	M	4.802%, 10/17/2023		547,445
	1,062	M	Talen Energy Supply, LLC, 5.8769%, 7/15/2023		1,045,666
					10,208,542
			Waste Management—.5%
	1,000	M	Gopher Resource, LLC, 5.4784%, 3/6/2025		1,009,690
			Wireless Communications—2.0%
	1,000	M	Intelsat Jackson Holdings SA, 5.7063%, 11/27/2023		1,001,980
	1,436	M	Sprint Communications, Inc., 4.4375%, 2/2/2024		1,437,474
	1,689	M	Telesat Canada, 5.31%, 11/17/2023		1,700,098
					4,139,552
	Total Value of Loan Participations (cost $188,712,569)				190,220,868
			CORPORATE BONDS—5.0%
			Aerospace/Defense—.2%
	325	M	Bombardier, Inc., 8.75%, 12/1/2021 (b)		357,906
			Energy—.5%
	750	M	Oasis Petroleum, Inc., 6.5%, 11/1/2021		763,125
	271	M	Precision Drilling Corp., 6.5%, 12/15/2021		274,388
					1,037,513
			Financials—.7%
			DAE Funding, LLC:
	300	M	4%, 8/1/2020 (b)		293,250
	350	M	4.5%, 8/1/2022 (b)		332,937
	850	M	Icahn Enterprises, LP, 6.25%, 2/1/2022		867,000
					1,493,187

24

Principal Amount			Security	Value
			Forest Products/Containers—1.0%
$	1,000	M	Ardagh Holdings USA, Inc., 7.25%, 5/15/2024 (b)	$	1,067,500
	900	M	BWAY Holding Co., 5.5%, 4/15/2024 (b)		907,875
					1,975,375
			Health Care—.8%
	800	M	Centene Corp., 5.625%, 2/15/2021		824,000
	450	M	Endo Finance, LLC, 7.25%, 1/15/2022 (b)		392,625
	450	M	Molina Healthcare, Inc., 5.375%, 11/15/2022		446,625
					1,663,250
			Media-Cable TV—.9%
	750	M	CSC Holdings, LLC, 10.125%, 1/15/2023 (b)		834,375
	500	M	DISH DBS Corp., 7.875%, 9/1/2019		523,750
	425	M	Numericable Group SA, 6.25%, 5/15/2024 (b)		402,156
					1,760,281
			Metals/Mining—.2%
	100	M	Aleris International, Inc., 9.5%, 4/1/2021 (b)		104,375
	325	M	Teck Resources, Ltd., 8.5%, 6/1/2024 (b)		361,953
					466,328
			Services—.2%
	450	M	Cimpress NV, 7%, 4/1/2022 (b)		471,375
			Telecommunications—.3%
	650	M	GCI, Inc., 6.875%, 4/15/2025		684,125
			Utilities—.2%
	430	M	Calpine Corp., 6%, 1/15/2022 (b)		442,534
	Total Value of Corporate Bonds (cost $10,476,103)				10,351,874

25

Portfolio of Investments (continued)

FLOATING RATE FUND

March 31, 2018

	Principal Amount	Security		Value
		SHORT-TERM CORPORATE NOTES—3.6%
$	7,500M	Federal Home Loan Bank, 1.7%, 4/26/2018 (cost $7,491,139)		$	7,491,750
	Total Value of Investments (cost $206,679,811)		99.9%		208,064,492
	Other Assets, Less Liabilities		.1		145,965
	Net Assets		100.0%	$	208,210,457

(a) A portion or all of the security purchased on a when-issued or delayed delivery basis.

(b) Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 4).

† Interest rates are determined and reset periodically. The interest rates above are the rates in effect at March 31, 2018.

Summary of Abbreviations:

ULC Unlimited Liability Corporation

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

See notes to financial statements

26

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1		Level 2		Level 3		Total
Loan Participations	$	—	$	190,220,868	$	—	$	190,220,868
Corporate Bonds		—		10,351,874		—		10,351,874
Short-Term U.S. Government Agency Obligations		—		7,491,750		—		7,491,750
Total Investments in Securities*	$	—	$	208,064,492	$	—	$	208,064,492

* The Portfolio of Investments provides information on the industry categorization of loan participations and corporate bonds.

There were no transfers into or from Level 1 and Level 2 by the Fund for the period ended March 31, 2018. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

27

Fund Expenses (unaudited)

FUND FOR INCOME

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.21%
Actual		$1,000.00	$ 992.72	$ 6.01
Hypothetical**		$1,000.00	$ 1,018.90	$ 6.09
Class B Shares	2.02%
Actual		$1,000.00	$ 950.13	$ 9.82
Hypothetical**		$1,000.00	$ 1,014.86	$ 10.15
Advisor Class Shares	0.95%
Actual		$1,000.00	$ 994.05	$ 4.72
Hypothetical**		$1,000.00	$ 1,020.19	$ 4.78
Institutional Class Shares	0.79%
Actual		$1,000.00	$ 994.89	$ 3.93
Hypothetical**		$1,000.00	$ 1,020.99	$ 3.98

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
**	Assumed rate of return of 5% before expenses

Portfolio Composition

TOP TEN SECTORS

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

28

Portfolio of Investments

FUND FOR INCOME

March 31, 2018

Principal Amount			Security	Value
			CORPORATE BONDS—90.4%
			Aerospace/Defense—2.6%
			Bombardier, Inc.:
$	2,600	M	8.75%, 12/1/2021 (a)	$	2,863,250
	1,950	M	7.5%, 12/1/2024 (a)		2,023,125
	1,200	M	7.5%, 3/15/2025 (a)		1,237,500
	3,275	M	KLX, Inc., 5.875%, 12/1/2022 (a)		3,386,514
			Meccanica Holdings USA, Inc.:
	1,871	M	7.375%, 7/15/2039 (a)		2,291,975
	750	M	6.25%, 1/15/2040 (a)		832,500
			TransDigm, Inc.:
	1,650	M	5.5%, 10/15/2020		1,662,375
	3,225	M	6.375%, 6/15/2026		3,257,250
					17,554,489
			Automotive—2.7%
	3,500	M	Adient Global Holdings, Ltd., 4.875%, 8/15/2026 (a)		3,325,000
	1,475	M	American Axle & Manufacturing, Inc., 6.25%, 4/1/2025		1,476,844
	1,725	M	Asbury Automotive Group, Inc., 6%, 12/15/2024		1,763,813
	1,700	M	Avis Budget Group, Inc., 6.375%, 4/1/2024 (a)		1,725,500
	1,675	M	Cooper Standard Automotive, Inc., 5.625%, 11/15/2026 (a)		1,675,000
	1,000	M	Dana Financing Luxembourg Sarl, 6.5%, 6/1/2026 (a)		1,042,500
			Dana Holding Corp.:
	2,000	M	6%, 9/15/2023		2,077,000
	700	M	5.5%, 12/15/2024		714,000
	1,425	M	Group 1 Automotive, Inc., 5.25%, 12/15/2023 (a)		1,432,125
	1,650	M	Hertz Corp., 7.625%, 6/1/2022 (a)		1,678,875
	1,675	M	Meritor, Inc., 6.25%, 2/15/2024		1,748,281
					18,658,938
			Building Materials—1.2%
	3,250	M	Building Materials Corp., 5.375%, 11/15/2024 (a)		3,306,875
	3,425	M	Griffon Corp., 5.25%, 3/1/2022		3,451,715
	1,200	M	New Enterprise Stone & Lime Co., 6.25%, 3/15/2026 (a)		1,204,500
					7,963,090

29

Portfolio of Investments (continued)

FUND FOR INCOME

March 31, 2018

Principal Amount			Security	Value
			Chemicals—2.6%
$	1,200	M	A. Schulman, Inc., 6.875%, 6/1/2023	$	1,272,000
	1,800	M	Blue Cube Spinco, Inc., 10%, 10/15/2025		2,124,000
	1,850	M	CF Industries, Inc., 4.95%, 6/1/2043		1,621,063
	1,625	M	Chemours Co., 6.625%, 5/15/2023		1,712,344
	1,950	M	CVR Partners, LP, 9.25%, 6/15/2023 (a)		2,083,478
	1,600	M	PQ Corp., 6.75%, 11/15/2022 (a)		1,688,000
	4,300	M	Rain CII Carbon, LLC, 7.25%, 4/1/2025 (a)		4,558,000
	2,475	M	Rayonier AM Products, Inc., 5.5%, 6/1/2024 (a)		2,437,875
					17,496,760
			Consumer Non-Durables—1.2%
	1,600	M	First Quality Finance Co., 4.625%, 5/15/2021 (a)		1,600,000
	3,575	M	Kronos Acquisition, Inc., 9%, 8/15/2023 (a)		3,405,188
	1,525	M	Reynolds Group Holdings, Inc., 5.125%, 7/15/2023 (a)		1,541,699
	1,375	M	Standard Industries, Inc., 5.5%, 2/15/2023 (a)		1,426,562
					7,973,449
			Energy—12.5%
			Andeavor Logistics, LP:
	725	M	5.2%, 12/1/2047		716,488
	1,700	M	6.875%, 12/29/2049		1,711,050
			Antero Resources Corp.:
	950	M	5.375%, 11/1/2021		970,187
	475	M	5.125%, 12/1/2022		480,937
	1,725	M	Baytex Energy Corp., 5.125%, 6/1/2021 (a)		1,621,500
	1,475	M	Berry Petroleum Co., 7%, 2/15/2026 (a)		1,490,192
	1,375	M	Blue Racer Midstream, LLC, 6.125%, 11/15/2022 (a)		1,405,938
	850	M	Callon Petroleum Co., 6.125%, 10/1/2024		873,630
			Carrizo Oil & Gas, Inc.:
	500	M	6.25%, 4/15/2023		502,500
	600	M	8.25%, 7/15/2025		631,500
	2,175	M	Chesapeake Energy Corp., 8%, 1/15/2025 (a)		2,109,750
	925	M	CONSOL Energy, Inc., 5.875%, 4/15/2022		933,094

30

Principal Amount			Security	Value
			Consolidated Energy Finance SA:
$	1,700	M	6.75%, 10/15/2019 (a)	$	1,721,250
	1,400	M	6.875%, 6/15/2025 (a)		1,470,000
			Continental Resources, Inc.:
	1,775	M	3.8%, 6/1/2024		1,715,094
	1,950	M	4.375%, 1/15/2028 (a)		1,903,687
			Crestwood Midstream Partners, LP:
	2,175	M	6.25%, 4/1/2023		2,202,187
	1,375	M	5.75%, 4/1/2025		1,368,125
	1,825	M	CSI Compressco, LP, 7.5%, 4/1/2025 (a)		1,847,812
			DCP Midstream Operating, LP:
	2,250	M	5.35%, 3/15/2020 (a)		2,323,125
	1,575	M	7.375%, 12/29/2049 †		1,572,047
	1,775	M	Delek Logistics Partners, LP, 6.75%, 5/15/2025 (a)		1,801,625
			Diamondback Energy, Inc.:
	500	M	4.75%, 11/1/2024		496,250
	775	M	5.375%, 5/31/2025 (a)		787,981
			Endeavor Energy Resources, LP:
	1,825	M	5.5%, 1/30/2026 (a)		1,820,437
	1,475	M	5.75%, 1/30/2028 (a)		1,475,000
	2,767	M	Exterran Partners, LP, 6%, 10/1/2022		2,760,083
	975	M	Forum Energy Technologies, Inc., 6.25%, 10/1/2021		970,125
			Genesis Energy, LP:
	1,400	M	6.75%, 8/1/2022		1,443,750
	500	M	5.625%, 6/15/2024		473,750
	1,875	M	Global Partners, LP, 6.25%, 7/15/2022		1,875,000
	1,150	M	Gulfport Energy Corp., 6.375%, 5/15/2025		1,105,437
	1,300	M	Laredo Petroleum, Inc., 5.625%, 1/15/2022		1,296,750
	1,825	M	Matador Resources Co., 6.875%, 4/15/2023		1,902,563
			Murphy Oil Corp.:
	1,425	M	4.7%, 12/1/2022		1,382,250
	1,100	M	5.75%, 8/15/2025		1,086,250
	700	M	5.875%, 12/1/2042		644,000
	1,850	M	Nabors Industries, Inc., 5.75%, 2/1/2025 (a)		1,748,250
	1,675	M	Newfield Exploration Co., 5.375%, 1/1/2026		1,737,812

31

Portfolio of Investments (continued)

FUND FOR INCOME

March 31, 2018

Principal Amount			Security	Value
			Energy (continued)
$	1,725	M	NGPL Pipeco, LLC, 4.875%, 8/15/2027 (a)	$	1,705,594
	1,750	M	Oasis Petroleum, Inc., 6.875%, 1/15/2023		1,778,438
	1,650	M	Parkland Fuel Corp., 6%, 4/1/2026 (a)		1,662,375
			Parsley Energy, LLC:
	425	M	6.25%, 6/1/2024 (a)		441,469
	1,775	M	5.25%, 8/15/2025 (a)		1,768,344
	300	M	5.625%, 10/15/2027 (a)		300,750
			PDC Energy, Inc.:
	1,250	M	6.125%, 9/15/2024		1,281,250
	675	M	5.75%, 5/15/2026 (a)		664,031
			Precision Drilling Corp.:
	1,148	M	6.5%, 12/15/2021		1,162,350
	950	M	7.125%, 1/15/2026 (a)		942,875
	1,350	M	QEP Resources, Inc., 6.875%, 3/1/2021		1,437,750
	350	M	Range Resources Corp., 4.875%, 5/15/2025		326,375
	700	M	RSP Permian, Inc., 5.25%, 1/15/2025		727,125
	575	M	SESI, LLC, 7.75%, 9/15/2024 (a)		596,563
	1,025	M	SM Energy Co., 5%, 1/15/2024		955,812
			Southwestern Energy Co.:
	1,000	M	7.5%, 4/1/2026		1,015,000
	1,250	M	7.75%, 10/1/2027		1,278,125
	700	M	Suburban Propane Partners, LP, 5.875%, 3/1/2027		666,750
	1,125	M	Sunoco, LP, 5.875%, 3/15/2028 (a)		1,089,844
			Targa Resources Partners, LP:
	900	M	5.25%, 5/1/2023		909,000
	2,800	M	4.25%, 11/15/2023		2,698,500
	325	M	TransMontaigne Partners, LP, 6.125%, 2/15/2026		327,438
	375	M	Unit Corp., 6.625%, 5/15/2021		376,875
			Weatherford Bermuda, PLC:
	600	M	4.5%, 4/15/2022		493,500
	625	M	6.5%, 8/1/2036		446,875
	2,375	M	Whiting Petroleum Corp., 6.25%, 4/1/2023		2,410,625
	3,150	M	WPX Energy, Inc., 6%, 1/15/2022		3,252,375
					85,093,414

32

Principal Amount			Security	Value
			Financials—6.9%
$	2,225	M	Ally Financial, Inc., 8%, 11/1/2031	$	2,725,625
	1,925	M	Arch Merger Sub, Inc., 8.5%, 9/15/2025 (a)		1,785,437
	1,825	M	Argos Merger Sub, Inc., 7.125%, 3/15/2023 (a)		1,044,812
	1,200	M	AssuredPartners, Inc., 7%, 8/15/2025 (a)		1,188,000
	1,525	M	Credit Suisse Group AG, 7.5%, 12/11/2023 (a)		1,654,779
	2,575	M	CSTN Merger Sub, Inc., 6.75%, 8/15/2024 (a)		2,564,571
	3,600	M	DAE Funding, LLC, 5%, 8/1/2024 (a)		3,415,500
			Icahn Enterprises, LP:
	2,225	M	6.25%, 2/1/2022		2,269,500
	1,450	M	6.75%, 2/1/2024		1,480,813
	1,000	M	6.375%, 12/15/2025		1,007,500
			Intesa Sanpaolo SpA:
	3,425	M	5.017%, 6/26/2024 (a)		3,382,708
	1,675	M	5.71%, 1/15/2026 (a)		1,683,589
			Ladder Capital Finance Holdings, LLLP:
	325	M	5.875%, 8/1/2021 (a)		331,893
	1,350	M	5.25%, 3/15/2022 (a)		1,353,375
	2,700	M	5.25%, 10/1/2025 (a)		2,565,000
	2,425	M	LPL Holdings, Inc., 5.75%, 9/15/2025 (a)		2,400,023
	2,650	M	Navient Corp., 5.875%, 3/25/2021		2,719,563
	2,550	M	Royal Bank of Scotland Group, PLC, 8.625%, 8/15/2021		2,776,312
	1,600	M	Societe Generale SA, 7.375%, 9/13/2071 (a)		1,706,000
			Springleaf Finance Corp.:
	1,225	M	7.75%, 10/1/2021		1,330,656
	1,450	M	5.625%, 3/15/2023		1,426,438
	1,600	M	6.875%, 3/15/2025		1,610,000
	4,325	M	UniCredit SpA, 5.861%, 6/19/2032 (a)		4,401,596
					46,823,690
			Food/Beverage/Tobacco—1.8%
	1,225	M	Barry Callebault Services SA, 5.5%, 6/15/2023 (a)		1,311,975
	2,050	M	JBS USA LUX SA, 6.75%, 2/15/2028 (a)		1,970,562
	625	M	Lamb Weston Holdings, Inc., 4.875%, 11/1/2026 (a)		621,094

33

Portfolio of Investments (continued)

FUND FOR INCOME

March 31, 2018

Principal Amount			Security	Value
			Food/Beverage/Tobacco (continued)
			Pilgrim’s Pride Corp.:
$	250	M	5.75%, 3/15/2025 (a)	$	243,403
	2,075	M	5.875%, 9/30/2027 (a)		1,960,460
			Post Holdings, Inc.:
	1,725	M	5.5%, 3/1/2025 (a)		1,703,438
	2,800	M	5.75%, 3/1/2027 (a)		2,793,000
	1,300	M	Simmons Foods, Inc., 5.75%, 11/1/2024 (a)		1,181,375
	350	M	Vector Group, Ltd., 6.125%, 2/1/2025 (a)		350,875
					12,136,182
			Forest Products/Containers—2.5%
			Ardagh Holdings USA, Inc.:
	525	M	4.625%, 5/15/2023 (a)		528,937
	4,750	M	7.25%, 5/15/2024 (a)		5,070,625
			BWAY Holding Co.:
	1,725	M	5.5%, 4/15/2024 (a)		1,740,094
	2,825	M	7.25%, 4/15/2025 (a)		2,888,562
	2,000	M	Crown Americas, LLC, 4.25%, 9/30/2026		1,855,000
			Mercer International, Inc.:
	350	M	7.75%, 12/1/2022		372,312
	1,175	M	6.5%, 2/1/2024		1,233,750
	525	M	5.5%, 1/15/2026 (a)		522,375
	2,175	M	Sealed Air Corp., 6.875%, 7/15/2033 (a)		2,425,125
					16,636,780
			Gaming/Leisure—3.1%
	2,300	M	Boyd Gaming Corp., 6.875%, 5/15/2023		2,435,125
	3,100	M	CRC Escrow Issuer, LLC, 5.25%, 10/15/2025 (a)		2,979,658
			Golden Nugget, Inc.:
	1,425	M	8.75%, 10/1/2025 (a)		1,482,000
	1,875	M	6.75%, 10/15/2024 (a)		1,889,044
	3,750	M	IRB Holding Corp., 6.75%, 2/15/2026 (a)		3,684,750
	575	M	Lions Gate Entertainment Corp., 5.875%, 11/1/2024 (a)		599,437
	1,650	M	National CineMedia, LLC, 6%, 4/15/2022		1,674,750
	1,125	M	Silversea Cruise Finance, Ltd., 7.25%, 2/1/2025 (a)		1,195,313

34

Principal Amount			Security	Value
			Viking Cruises, Ltd.:
$	3,325	M	6.25%, 5/15/2025 (a)	$	3,341,625
	1,500	M	5.875%, 9/15/2027 (a)		1,425,000
					20,706,702
			Health Care—6.8%
	2,725	M	Centene Corp., 6.125%, 2/15/2024		2,842,720
			CHS/Community Health Systems, Inc.:
	1,125	M	7.125%, 7/15/2020		922,500
	950	M	5.125%, 8/1/2021		888,250
	2,450	M	6.25%, 3/31/2023		2,269,313
	5,575	M	DaVita, Inc., 5.125%, 7/15/2024		5,453,047
			Endo Finance, LLC:
	725	M	7.25%, 1/15/2022 (a)		632,562
	1,575	M	6%, 7/15/2023 (a)		1,197,000
	375	M	6%, 2/1/2025 (a)		270,937
			HCA, Inc.:
	3,600	M	6.25%, 2/15/2021		3,789,000
	1,800	M	5.875%, 5/1/2023		1,867,500
			HealthSouth Corp.:
	1,150	M	5.125%, 3/15/2023		1,170,125
	1,325	M	5.75%, 11/1/2024		1,353,156
	300	M	inVentiv Group Holdings, Inc., 7.5%, 10/1/2024 (a)		320,250
			LifePoint Health, Inc.:
	2,900	M	5.875%, 12/1/2023		2,939,005
	1,175	M	5.375%, 5/1/2024		1,152,969
			Mallinckrodt Finance SB:
	2,575	M	5.75%, 8/1/2022 (a)		2,214,500
	1,025	M	5.5%, 4/15/2025 (a)		800,781
			Molina Healthcare, Inc.:
	2,925	M	5.375%, 11/15/2022		2,903,062
	1,750	M	4.875%, 6/15/2025 (a)		1,640,625
	775	M	MPH Operating Partnership, LP, 7.125%, 6/1/2024 (a)		802,125
	1,775	M	Polaris Intermediate Corp., 8.5%, 12/1/2022 (a)		1,814,955

35

Portfolio of Investments (continued)

FUND FOR INCOME

March 31, 2018

Principal Amount			Security	Value
			Health Care (continued)
$	850	M	RegionalCare Hospital Partners Holdings, Inc., 8.25%, 5/1/2023 (a)	$	888,250
	1,534	M	Universal Hospital Services, Inc., 7.625%, 8/15/2020		1,553,175
			Valeant Pharmaceuticals International, Inc.:
	400	M	6.5%, 3/15/2022 (a)		414,500
	1,925	M	7.25%, 7/15/2022 (a)		1,932,219
	800	M	7%, 3/15/2024 (a)		837,000
	2,150	M	6.125%, 4/15/2025 (a)		1,863,513
	1,900	M	9%, 12/15/2025 (a)		1,895,250
					46,628,289
			Home Building—.2%
	1,650	M	William Lyon Homes, Inc., 6%, 9/1/2023 (a)		1,652,063
			Information Technology—4.2%
	3,850	M	Alliance Data Systems Corp., 5.375%, 8/1/2022 (a)		3,869,250
	1,650	M	CDW, LLC, 5%, 9/1/2025		1,650,000
	1,625	M	CommScope Technologies, LLC, 6%, 6/15/2025 (a)		1,698,938
			Diamond 1 Finance Corp.:
	1,525	M	5.875%, 6/15/2021 (a)		1,570,750
	1,200	M	6.02%, 6/15/2026 (a)		1,294,357
	1,325	M	Equinix, Inc., 5.875%, 1/15/2026		1,384,625
	825	M	Match Group, Inc., 6.375%, 6/1/2024		880,687
			NCR Corp.:
	600	M	4.625%, 2/15/2021		598,500
	525	M	5.875%, 12/15/2021		536,156
	1,375	M	Nuance Communications, Inc., 6%, 7/1/2024		1,416,250
	1,000	M	NXP BV, 3.875%, 9/1/2022 (a)		995,000
	1,300	M	Open Text Corp., 5.625%, 1/15/2023 (a)		1,353,625
	3,850	M	Rackspace Hosting, Inc., 8.625%, 11/15/2024 (a)		3,811,500
	1,800	M	Radiate Holdco, LLC, 6.625%, 2/15/2025 (a)		1,660,500
	1,225	M	Sensata Technologies U.K. Financing Co., 6.25%, 2/15/2026 (a)		1,293,539
	3,975	M	Solera, LLC, 10.5%, 3/1/2024 (a)		4,442,063
					28,455,740

36

Principal Amount			Security	Value
			Manufacturing—2.3%
$	800	M	American Woodmark Corp., 4.875%, 3/15/2026 (a)	$	783,000
	2,525	M	ATS Automation Tooling Systems, Inc., 6.5%, 6/15/2023 (a)		2,644,938
	700	M	Boise Cascade Co., 5.625%, 9/1/2024 (a)		719,250
	775	M	Brand Energy & Infrastructure Services, Inc., 8.5%, 7/15/2025 (a)		809,875
	925	M	Cloud Crane, LLC, 10.125%, 8/1/2024 (a)		1,026,750
	2,925	M	Grinding Media, Inc., 7.375%, 12/15/2023 (a)		3,078,563
	2,050	M	H&E Equipment Services, Inc., 5.625%, 9/1/2025		2,073,062
	1,300	M	Park-Ohio Industries, Inc., 6.625%, 4/15/2027		1,352,000
	3,025	M	Wabash National Corp., 5.5%, 10/1/2025 (a)		2,956,938
					15,444,376
			Media-Broadcasting—2.0%
			Belo Corp.:
	725	M	7.75%, 6/1/2027		804,750
	150	M	7.25%, 9/15/2027		162,187
	2,225	M	LIN Television Corp., 5.875%, 11/15/2022		2,300,094
			Nexstar Broadcasting, Inc.:
	1,625	M	6.125%, 2/15/2022 (a)		1,677,325
	2,075	M	5.625%, 8/1/2024 (a)		2,038,065
			Sinclair Television Group, Inc.:
	2,175	M	5.375%, 4/1/2021		2,199,469
	475	M	5.625%, 8/1/2024 (a)		472,625
	975	M	5.875%, 3/15/2026 (a)		968,906
	575	M	5.125%, 2/15/2027 (a)		536,187
	2,150	M	Sirius XM Radio, Inc., 6%, 7/15/2024 (a)		2,215,833
					13,375,441
			Media-Cable TV—9.9%
			Altice Financing SA:
	3,675	M	6.625%, 2/15/2023 (a)		3,647,438
	1,150	M	7.5%, 5/15/2026 (a)		1,129,875
			Altice Finco SA:
	970	M	8.125%, 1/15/2024 (a)		1,003,950
	900	M	7.625%, 2/15/2025 (a)		891,000

37

Portfolio of Investments (continued)

FUND FOR INCOME

March 31, 2018

Principal Amount			Security	Value
			Media-Cable TV (continued)
			Altice U.S. Finance I Corp.:
$	2,625	M	5.375%, 7/15/2023 (a)	$	2,665,688
	1,325	M	5.5%, 5/15/2026 (a)		1,298,367
	775	M	AMC Networks, Inc., 4.75%, 8/1/2025		748,751
	1,250	M	Block Communications, Inc., 6.875%, 2/15/2025 (a)		1,263,225
			CCO Holdings, LLC:
	2,275	M	5.125%, 2/15/2023		2,295,475
	925	M	5.75%, 9/1/2023		941,188
	3,675	M	5.875%, 4/1/2024 (a)		3,748,500
	1,350	M	5.125%, 5/1/2027 (a)		1,285,065
	1,275	M	5.875%, 5/1/2027 (a)		1,278,187
	975	M	5%, 2/1/2028 (a)		918,937
			Cequel Communications Holdings I, LLC:
	1,457	M	6.375%, 9/15/2020 (a)		1,486,184
	1,700	M	7.75%, 7/15/2025 (a)		1,806,250
			Clear Channel Worldwide Holdings, Inc.:
	2,900	M	Series “A”, 6.5%, 11/15/2022		2,958,000
	3,775	M	Series “B”, 6.5%, 11/15/2022		3,872,018
			CSC Holdings, LLC:
	7,400	M	10.125%, 1/15/2023 (a)		8,232,500
	1,475	M	6.625%, 10/15/2025 (a)		1,526,625
	900	M	10.875%, 10/15/2025 (a)		1,059,741
			DISH DBS Corp.:
	1,675	M	7.875%, 9/1/2019		1,754,562
	1,650	M	5%, 3/15/2023		1,489,125
	1,750	M	5.875%, 11/15/2024		1,566,250
			Gray Television, Inc.:
	350	M	5.125%, 10/15/2024 (a)		339,500
	2,025	M	5.875%, 7/15/2026 (a)		1,974,375
			Mediacom Broadband, LLC:
	1,550	M	5.5%, 4/15/2021		1,561,625
	1,950	M	6.375%, 4/1/2023		2,012,166
	4,280	M	Midcontinent Communications & Finance Corp., 6.875%, 8/15/2023 (a)		4,520,750

38

Principal Amount			Security	Value
			Netflix, Inc.
$	700	M	4.375%, 11/15/2026	$	665,000
	725	M	4.875%, 4/15/2028 (a)		698,066
			Numericable Group SA:
	1,575	M	6%, 5/15/2022 (a)		1,541,500
	3,225	M	6.25%, 5/15/2024 (a)		3,051,656
	1,950	M	Virgin Media Finance, PLC, 6.375%, 4/15/2023 (a)		1,989,000
					67,220,539
			Media-Diversified—1.3%
	750	M	E.W. Scripps Co., 5.125%, 5/15/2025 (a)		699,375
	1,700	M	Gannett Co., Inc., 5.125%, 7/15/2020		1,724,803
	500	M	LSC Communications, Inc., 8.75%, 10/15/2023 (a)		516,400
	2,100	M	Outdoor Americas Capital, LLC, 5.875%, 3/15/2025		2,136,750
	3,650	M	Tribune Media Co., 5.875%, 7/15/2022		3,718,438
					8,795,766
			Metals/Mining—7.8%
	1,625	M	AK Steel Corp., 7%, 3/15/2027		1,596,563
			Aleris International, Inc.:
	1,840	M	7.875%, 11/1/2020		1,821,600
	650	M	9.5%, 4/1/2021 (a)		678,437
	1,180	M	Allegheny Technologies, Inc., 7.875%, 8/15/2023		1,287,675
	1,275	M	Alliance Resourse Operating Partners, LP, 7.5%, 5/1/2025 (a)		1,343,531
	1,175	M	Big River Steel, LLC, 7.25%, 9/1/2025 (a)		1,222,000
	1,725	M	Cleveland-Cliffs, Inc., 4.875%, 1/15/2024 (a)		1,677,563
	825	M	Cliffs Natural Resources, Inc., 5.75%, 3/1/2025 (a)		790,969
			Commercial Metals Co.:
	1,725	M	4.875%, 5/15/2023		1,724,707
	1,100	M	5.375%, 7/15/2027		1,086,250
	2,050	M	CONSOL Mining Corp., 11%, 11/15/2025 (a)		2,194,115
	1,550	M	Constellium NV, 5.75%, 5/15/2024 (a)		1,526,750
			First Quantum Minerals, Ltd.:
	3,350	M	7.25%, 5/15/2022 (a)		3,366,750
	2,275	M	6.5%, 3/1/2024 (a)		2,164,094

39

Portfolio of Investments (continued)

FUND FOR INCOME

March 31, 2018

Principal Amount			Security	Value
			Metals/Mining (continued)
$	1,400	M	Freeport-McMoRan, Inc., 5.45%, 3/15/2043	$	1,294,580
			HudBay Minerals, Inc.:
	1,425	M	7.25%, 1/15/2023 (a)		1,485,563
	450	M	7.625%, 1/15/2025 (a)		477,562
	3,000	M	Joseph T. Ryerson & Son, Inc., 11%, 5/15/2022 (a)		3,315,000
	1,675	M	Mountain Province Diamonds, Inc., 8%, 12/15/2022 (a)		1,679,187
	3,250	M	Natural Resource Partners, LP, 10.5%, 3/15/2022		3,485,625
			Novelis, Inc.:
	2,750	M	6.25%, 8/15/2024 (a)		2,825,625
	2,125	M	5.875%, 9/30/2026 (a)		2,087,813
	4,950	M	SunCoke Energy Partners, LP, 7.5%, 6/15/2025 (a)		5,123,250
			Teck Resources, Ltd.:
	850	M	8.5%, 6/1/2024 (a)		946,645
	2,150	M	6%, 8/15/2040		2,225,250
	3,900	M	TMS International Corp., 7.25%, 8/15/2025 (a)		4,075,500
	1,200	M	United States Steel Corp., 6.25%, 3/15/2026		1,200,000
					52,702,604
			Real Estate—2.1%
			Geo Group, Inc.:
	400	M	5.125%, 4/1/2023		397,000
	1,575	M	6%, 4/15/2026		1,547,438
	1,125	M	Greystar Real Estate Partners, 5.75%, 12/1/2025 (a)		1,125,000
			Iron Mountain, Inc.:
	1,875	M	5.75%, 8/15/2024		1,825,781
	1,800	M	5.25%, 3/15/2028 (a)		1,703,250
			Lennar Corp.:
	1,350	M	4.875%, 12/15/2023		1,360,260
	675	M	4.75%, 5/30/2025		667,406
	625	M	MPT Operating Partnership, LP, 6.375%, 3/1/2024		659,388
	1,100	M	Realogy Group/Co-Issuer, 5.25%, 12/1/2021 (a)		1,107,205
	1,500	M	Sabra Health Care, LP, 5.125%, 8/15/2026		1,448,475
	2,435	M	VICI Properties 1, LLC, 8%, 10/15/2023		2,708,938
					14,550,141

40

Principal Amount			Security	Value
			Retail-General Merchandise—1.4%
			1011778 B.C., ULC:
$	550	M	4.625%, 1/15/2022 (a)	$	552,750
	1,750	M	5%, 10/15/2025 (a)		1,675,100
			AmeriGas Partners, LP:
	775	M	5.625%, 5/20/2024		774,031
	1,725	M	5.5%, 5/20/2025		1,673,250
	1,450	M	J.C. Penney Co., Inc., 8.625%, 3/15/2025		1,366,625
	1,075	M	KFC Holding Co., LLC, 5%, 6/1/2024 (a)		1,070,969
	2,800	M	L Brands, Inc., 6.75%, 7/1/2036		2,702,000
					9,814,725
			Services—2.3%
	1,500	M	AECOM, 5.875%, 10/15/2024		1,576,875
	1,525	M	BlueLine Rental Finance Corp., 9.25%, 3/15/2024 (a)		1,638,887
	2,520	M	Cimpress NV, 7%, 4/1/2022 (a)		2,639,700
	1,675	M	First Data Corp., 5.375%, 8/15/2023 (a)		1,708,500
	2,250	M	GW Honos Security Corp., 8.75%, 5/15/2025 (a)		2,362,500
	325	M	KAR Auction Services, Inc., 5.125%, 6/1/2025 (a)		324,187
	1,725	M	Monitronics International, Inc., 9.125%, 4/1/2020		1,331,182
	1,378	M	Prime Security Services Borrower, LLC, 9.25%, 5/15/2023 (a)		1,496,756
			United Rentals, Inc.:
	975	M	4.625%, 10/15/2025		950,625
	1,225	M	5.5%, 5/15/2027		1,237,250
					15,266,462
			Telecommunications—3.6%
	2,000	M	CenturyLink, Inc., 5.8%, 3/15/2022		1,962,500
	725	M	Cincinnati Bell, Inc., 7%, 7/15/2024 (a)		652,500
			Frontier Communications Corp.:
	925	M	10.5%, 9/15/2022		778,230
	2,400	M	11%, 9/15/2025		1,810,500
	575	M	8.5%, 4/1/2026 (a)		557,750

41

Portfolio of Investments (continued)

FUND FOR INCOME

March 31, 2018

Principal Amount			Security	Value
			Telecommunications (continued)
			GCI, Inc.:
$	2,023	M	6.75%, 6/1/2021	$	2,050,816
	3,850	M	6.875%, 4/15/2025		4,052,125
	1,575	M	Qwest Corp., 7.25%, 9/15/2025		1,701,762
	1,425	M	Telecom Italia Capital SA, 7.2%, 7/18/2036		1,677,938
	2,925	M	Telecom Italia SpA, 5.303%, 5/30/2024		2,987,156
	1,275	M	Telesat Canada, 8.875%, 11/15/2024 (a)		1,402,500
	2,775	M	Wind Tre SpA, 5%, 1/20/2026 (a)		2,371,904
			Zayo Group, LLC:
	1,075	M	6.375%, 5/15/2025		1,116,656
	1,525	M	5.75%, 1/15/2027 (a)		1,494,500
					24,616,837
			Transportation—1.4%
			Avolon TLB Borrower 1 (U.S.), LLC:
	600	M	5.25%, 8/15/2022 (a)		590,070
	725	M	5.5%, 2/15/2024 (a)		705,062
	1,375	M	BCD Acquisition, Inc., 9.625%, 9/15/2023 (a)		1,491,875
	925	M	Fly Leasing, Ltd., 6.375%, 10/15/2021		963,156
	1,750	M	Mobile Mini, Inc., 5.875%, 7/1/2024		1,806,875
	3,650	M	XPO Logistics, Inc., 6.125%, 9/1/2023 (a)		3,782,313
					9,339,351
			Utilities—3.6%
	650	M	AES Corp., 5.125%, 9/1/2027		663,000
	950	M	Avantor, Inc., 9%, 10/1/2025 (a)		938,125
			Calpine Corp.:
	1,750	M	5.375%, 1/15/2023		1,681,837
	1,550	M	5.75%, 1/15/2025		1,422,125
	900	M	5.25%, 6/1/2026 (a)		871,875
			Cheniere Corpus Christi Holdings:
	1,550	M	5.875%, 3/31/2025		1,627,500
	1,675	M	5.125%, 6/30/2027		1,668,719

42

Principal Amount			Security	Value
			Dynegy, Inc.:
$	2,100	M	7.375%, 11/1/2022	$	2,218,125
	900	M	8%, 1/15/2025 (a)		983,250
	1,775	M	Energy Transfer Partners, LP, 6.25%, 12/29/2049		1,701,781
	1,310	M	FirstLight Hydro Generating, 8.812%, 10/15/2026		1,455,216
	328	M	Indiantown Cogeneration Utilities, LP, 9.77%, 12/15/2020		345,124
	350	M	InterGen NV, 7%, 6/30/2023 (a)		350,875
	1,525	M	NRG Energy, Inc., 6.625%, 1/15/2027		1,566,937
	1,350	M	NRG Yield Operating, LLC, 5%, 9/15/2026		1,333,125
	2,468	M	NSG Holdings, LLC, 7.75%, 12/15/2025 (a)		2,721,257
	3,150	M	Terraform Power Operating, LLC, 5%, 1/31/2028 (a)		3,000,375
					24,549,246
			Waste Management—.5%
	2,200	M	Covanta Holding Corp., 5.875%, 7/1/2025		2,139,500
	1,175	M	GFL Environmental, Inc., 5.625%, 5/1/2022 (a)		1,180,875
	400	M	Waste Pro USA, Inc., 5.5%, 2/15/2026 (a)		396,000
					3,716,375
			Wireless Communications—3.9%
	1,025	M	CB Escrow Corp., 8%, 10/15/2025 (a)		959,656
	775	M	Inmarsat Finance, PLC, 4.875%, 5/15/2022 (a)		757,562
	2,950	M	Intelsat Jackson Holdings SA, 8%, 2/15/2024 (a)		3,108,563
			Level 3 Financing, Inc.:
	2,150	M	5.125%, 5/1/2023		2,115,062
	1,475	M	5.375%, 1/15/2024		1,440,898
	675	M	5.25%, 3/15/2026		637,875
			Sprint Communications, Inc.:
	1,650	M	7%, 8/15/2020		1,720,125
	5,750	M	6%, 11/15/2022		5,656,563
			Sprint Corp.,
	1,325	M	7.625%, 3/1/2026		1,296,115
	4,575	M	7.875%, 9/15/2023		4,677,937

43

Portfolio of Investments (continued)

FUND FOR INCOME

March 31, 2018

Principal Amount			Security	Value
			Wireless Communications (continued)
			T-Mobile USA, Inc.:
$	300	M	6.5%, 1/15/2024	$	315,000
	3,800	M	6%, 4/15/2024		3,967,580
					26,652,936
	Total Value of Corporate Bonds (cost $617,126,122)				613,824,385
			LOAN PARTICIPATIONS†—7.7%
			Automotive—.7%
	1,500	M	Horizon Global, 5%, 2/16/2024		1,485,000
	3,002	M	Truck Hero, Inc., 6.2225%, 4/22/2024		3,026,076
					4,511,076
			Chemicals—1.2%
	3,250	M	Avantor Performance Materials, 4%, 11/21/2024 (b)		3,288,350
	3,250	M	ColourOz Investment, 3%, 9/7/2021 (b)		3,071,250
	1,900	M	Cyanco Intermediate Corp., 5.6721%, 3/16/2025		1,911,875
					8,271,475
			Energy—.7%
	800	M	California Resources Corp., 6.5721%, 12/31/2022		812,504
	3,250	M	Foresight Energy, LLC, 5.75%, 3/28/2022 (b)		3,183,635
	748	M	Medallion Midland Acquisition, 5.1269%, 10/30/2024		750,306
					4,746,445
			Financials—.3%
	2,275	M	Sigma Bidco BV, 3%, 3/6/2025		2,276,422
			Food/Beverage/Tobacco—.5%
	3,250	M	Chobani, LLC, 3.5%, 10/10/2023 (b)		3,270,312
			Gaming/Leisure—1.0%
	3,250	M	Dorna Sports SL, 3.5%, 4/12/2024		3,229,687
	3,500	M	Scientific Games International, 2.75%, 8/14/2024 (b)		3,516,415
					6,746,102

44

Principal Amount			Security	Value
			Health Care—.7%
$	1,500	M	Amneal Pharmaceuticals, LLC, 3.5%, 3/21/2025 (b)	$	1,505,625
	2,943	M	ExamWorks Group, Inc., 5.12688%, 7/27/2023		2,969,818
					4,475,443
			Information Technology—.7%
	1,621	M	Solarwinds, Inc., 4.8769%, 2/5/2024		1,630,063
	3,250	M	SS&C Technologies Holdings, Inc., 2.5%, 2/28/2025 (b)		3,271,889
					4,901,952
			Manufacturing—.7%
	625	M	Filtration Group Corp., 4%, 3/27/2025 (b)		629,687
	3,575	M	GrafTech International, Ltd., 5.2396%, 2/12/2025 (b)		3,579,469
	364	M	Peabody Energy Corp., 5.3769%, 3/31/2022		368,395
					4,577,551
			Metals/Mining—.4%
	2,687	M	Big River Steel, LLC, 7.302%, 8/23/2023		2,730,156
			Retail-General Merchandise—.2%
	1,688	M	Staples, Inc., 5.7870%, 9/12/2024		1,674,744
			Utilities—.4%
	2,748	M	Charah, LLC, 8.1864%, 10/25/2024		2,780,127
			Waste Management—.2%
	1,250	M	Gopher Resource, LLC, 5.4784%, 3/6/2025		1,262,113
	Total Value of Loan Participations (cost $51,864,334)				52,223,918
			PASS-THROUGH CERTIFICATES—.4%
			Transportation
	2,528	M	American Airlines 13-2 B PTT, 5.6%, 1/15/2022 (cost $2,577,662) (a)		2,593,375

45

Portfolio of Investments (continued)

FUND FOR INCOME

March 31, 2018

	Principal Amount	Security		Value
		SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS—1.5%
$	10,000M	Federal Home Loan Bank, 1.7%, 4/26/2018 (cost $9,988,185)		$	9,989,000
	Total Value of Investments (cost $681,556,303)		100.0%		678,630,678
	Other Assets, Less Liabilities		—		244,974
	Net Assets		100.0%	$	678,875,652

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 4).

(b) A portion or all of the security purchased on a when-issued or delayed delivery basis (see Note 1G).

† Interest rates are determined and reset periodically. The interest rates above are the rates in efffect at March 31, 2018.

Summary of Abbreviations:

LLLP	Limited Liability Limited Partnership
PTT	Pass-Through Trust
ULC	Unlimited Liability Corporation

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

46

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1		Level 2		Level 3		Total
Corporate Bonds	$	—	$	613,824,385	$	—	$	613,824,385
Loan Participations		—		52,223,918		—		52,223,918
Pass-Through Certificates		—		2,593,375		—		2,593,375
Short-Term U.S. Government Agency Obligations		—		9,989,000		—		9,989,000
Total Investments in Securities*	$	—	$	678,630,678	$	—	$	678,630,678

* The Portfolio of Investments provides information on the industry categorization for corporate bonds, loan participations and pass-through certificates.

There were no transfers into or from Level 1 and Level 2 by the Fund during the period ended March 31, 2018. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

47

Fund Expenses (unaudited)

GOVERNMENT FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.07%
Actual		$1,000.00	$ 986.72	$ 5.30
Hypothetical**		$1,000.00	$ 1,019.59	$ 5.39
Class B Shares	1.98%
Actual		$1,000.00	$ 942.22	$ 9.59
Hypothetical**		$1,000.00	$ 1,015.06	$ 9.95
Advisor Class Shares	0.80%
Actual		$1,000.00	$ 987.07	$ 3.96
Hypothetical**		$1,000.00	$ 1,020.94	$ 4.03
Institutional Class Shares	0.64%
Actual		$1,000.00	$ 989.47	$ 3.17
Hypothetical**		$1,000.00	$ 1,021.74	$ 3.23

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
**	Assumed rate of return of 5% before expenses

Portfolio Composition

BY SECTOR

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

48

Portfolio of Investments

GOVERNMENT FUND

March 31, 2018

Principal Amount			Security	Value
			RESIDENTIAL MORTGAGE-BACKED SECURITIES—34.0%
			Fannie Mae—25.4%
$	10,358	M	3%, 12/1/2028 - 4/1/2031	$	10,380,553
	24,197	M	3.5%, 4/1/2033 - 4/1/2046		24,420,861
	21,701	M	4%, 8/1/2026 - 4/1/2047		22,457,532
	5,203	M	4.5%, 11/1/2040 - 1/1/2042		5,564,790
	1,755	M	5%, 8/1/2039 - 11/1/2039		1,897,200
	1,561	M	5.5%, 7/1/2033 - 10/1/2039		1,713,537
					66,434,473
			Freddie Mac—4.2%
	217	M	3%, 6/1/2021		216,806
	4,402	M	3.5%, 9/1/2032 - 2/1/2046		4,446,976
	5,110	M	4%, 6/1/2047		5,257,121
	1,057	M	5%, 8/1/2039		1,152,774
					11,073,677
			Government National Mortgage Association I Program—4.4%
	591	M	4%, 6/15/2042		627,972
	4,094	M	5%, 6/15/2033 - 4/15/2040		4,408,935
	2,263	M	5.5%, 3/15/2033 - 10/15/2039		2,521,427
	2,350	M	6%, 3/15/2033 - 11/15/2039		2,680,428
	1,323	M	7%, 6/15/2023 - 4/15/2034		1,408,970
					11,647,732
	Total Value of Residential Mortgage-Backed Securities (cost $87,876,844)				89,155,882
			COMMERCIAL MORTGAGE-BACKED SECURITIES—18.3%
			Fannie Mae—10.4%
	2,705	M	2.27%, 1/1/2023		2,631,795
	1,300	M	2.96%, 11/1/2018		1,300,694
	5,110	M	2.995%, 11/1/2022		5,130,027
	2,700	M	3.33%, 4/1/2035		2,672,744

49

Portfolio of Investments (continued)

GOVERNMENT FUND

March 31, 2018

Principal Amount			Security	Value
			Fannie Mae (continued)
$	1,419	M	3.41%, 11/1/2046	$	1,358,548
	6,900	M	3.34%, 2/1/2027		7,031,852
	2,700	M	3.4%, 6/1/2031		2,669,720
	4,500	M	3.84%, 5/1/2018		4,493,794
					27,289,174
			Federal Home Loan Mortgage Corporation—7.9%
			Multi-Family Structured Pass-Throughs:
	3,630	M	2.0401%, 5/25/2024†		3,641,779
	4,500	M	2.1101%, 8/25/2027†		4,509,135
	1,830	M	2.454%, 8/25/2023		1,786,468
	4,330	M	2.849%, 3/25/2026		4,226,595
	4,700	M	3.08%, 1/25/2031		4,633,030
	2,000	M	3.35%, 1/28/2028		2,017,614
					20,814,621
	Total Value of Commercial Mortgage-Backed Securities (cost $52,847,969)				48,103,795
			U.S. GOVERNMENT OBLIGATIONS—15.9%
			U.S. Treasury Bonds:
	2,475	M	2.75%, 8/15/2047		2,365,947
	4,100	M	2.75%, 11/15/2047		3,920,305
	1,500	M	4.5%, 2/15/2036		1,853,994
			U.S. Treasury Notes:
	2,000	M	1.125%, 8/31/2021		1,913,204
	13,230	M	1.375%, 10/31/2020		12,904,158
	5,100	M	1.5%, 3/31/2023		4,845,796
	5,000	M	1.75%, 5/31/2022		4,849,315
	2,560	M	1.875%, 8/31/2022		2,490,299
	6,800	M	2.25%, 10/31/2024		6,626,947
	Total Value of U.S. Government Obligations (cost $42,941,002)				41,769,965

50

Principal Amount			Security	Value
			U.S. GOVERNMENT AGENCY OBLIGATIONS—10.5%
			Fannie Mae:
$	5,000	M	1.25%, 5/6/2021	$	4,821,685
	1,700	M	1.375%, 2/26/2021		1,649,005
	5,000	M	1.5%, 2/28/2020		4,925,445
	1,800	M	Federal Farm Credit Bank, 3%, 9/13/2029		1,756,458
			Freddie Mac:
	4,300	M	1.375%, 5/28/2019		4,260,913
	5,000	M	2.375%, 3/30/2020		5,002,110
	5,000	M	3.75%, 3/27/2019		5,075,840
	Total Value of U.S. Government Agency Obligations (cost $28,102,525)				27,491,456
			TAXABLE MUNICIPAL BONDS—8.5%
			California State Dept. Wtr. Rev.:
	3,000	M	2.977%, 12/1/2027		2,915,010
	1,950	M	3.077%, 12/1/2028		1,893,781
	3,600	M	New York State Urban Dev. Corp. Rev., 3.27%, 3/15/2027		3,587,652
	2,700	M	Texas State A&M Perm. Univ. Fund, 3.66%, 7/1/2047		2,632,338
	1,900	M	Texas State Wtr. Dev. Brd. Rev., 3.7%, 10/15/2047		1,904,009
	3,895	M	University of North Carolina at Chapel Hill Rev., 3.326%, 12/1/2038		3,742,004
	2,900	M	University of Southern California, 3.841%, 10/1/2047		2,980,342
	2,700	M	University of Texas, 3.376%, 7/1/2047		2,578,257
	Total Value of Taxable Municipal Bonds (cost $22,756,480)				22,233,393
			COLLATERALIZED MORTGAGE OBLIGATIONS—4.4%
			Fannie Mae:
	5,211	M	4%, 2/25/2025		5,367,486
	1,800	M	3.0859%, 12/25/2027†		1,765,989
	4,335	M	Freddie Mac, 3.5%, 12/15/2028		4,420,881
	Total Value of Collateralized Mortgage Obligations (cost $11,982,408)				11,554,356

51

Portfolio of Investments (continued)

GOVERNMENT FUND

March 31, 2018

	Principal Amount	Security		Value
		COVERED BONDS—3.6%
		Financial Services
$	4,750M	Canadian Imperial Bank of Commerce, 2.35%, 7/27/2022 (a)		$	4,628,713
	5,000M	Royal Bank of Canada, 2.3%, 3/22/2021			4,917,245
	Total Value of Covered Bonds (cost $9,768,424)				9,545,958
		SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS—3.8%
	10,000M	Federal Home Loan Bank, 1.715%, 4/16/2018 (cost $9,992,850)			9,993,580
	Total Value of Investments (cost $266,268,502)		99.0%		259,848,385
	Other Assets, Less Liabilities		1.0		2,493,051
	Net Assets		100.0%	$	262,341,436

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 4).

† Interest rates are determined and reset periodically. The interest rates above are the rates in effect at March 31, 2018.

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

52

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1		Level 2		Level 3		Total
Residential Mortgage-Backed Securities	$	—	$	89,155,882	$	—	$	89,155,882
Commercial Mortgage-Backed Securities		—		48,103,795		—		48,103,795
U.S. Government Obligations		—		41,769,965		—		41,769,965
U.S. Government Agency Obligations		—		27,491,456		—		27,491,456
Taxable Municipal Bonds		—		22,233,393		—		22,233,393
Collateralized Mortgage Obligations		—		11,554,356		—		11,554,356
Covered Bonds		—		9,545,958		—		9,545,958
Short-Term U.S. Government Agency Obligations		—		9,993,580		—		9,993,580
Total Investments in Securities	$	—	$	259,848,385	$	—	$	259,848,385

There were no transfers into or from Level 1 and Level 2 by the Fund during the period ended March 31, 2018. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

53

Fund Expenses (unaudited)

GOVERNMENT CASH MANAGEMENT FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	0.60%
Actual		$1,000.00	$ 1,003.23	$ 3.00
Hypothetical**		$1,000.00	$ 1,021.94	$ 3.02
Class B Shares	1.25%
Actual		$1,000.00	$ 960.00	$ 6.11
Hypothetical**		$1,000.00	$ 1,018.70	$ 6.29
Institutional Class Shares	0.60%
Actual		$1,000.00	$ 1,003.23	$ 3.00
Hypothetical**		$1,000.00	$ 1,021.94	$ 3.02

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived and/or assumed.
**	Assumed rate of return of 5% before expenses

Portfolio Composition

BY SECTOR

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

54

Portfolio of Investments

GOVERNMENT CASH MANAGEMENT FUND

March 31, 2018

Principal Amount			Security	Interest Rate*			Value
			SHORT-TERM U.S. GOVERNMENT OBLIGATIONS—50.2%
			U.S. Treasury Bills:
$	13,000	M	4/5/2018		1.60	%	$	12,997,687
	5,000	M	4/12/2018		1.60			4,997,562
	4,000	M	4/19/2018		1.54			3,996,915
	3,000	M	4/26/2018		1.21			2,997,473
	4,700	M	5/3/2018		1.50			4,693,720
	5,000	M	5/24/2018		1.58			4,988,350
	6,000	M	6/7/2018		1.43			5,983,992
	7,000	M	6/14/2018		1.61			6,976,729
	4,000	M	6/21/2018		1.50			3,986,435
	3,000	M	6/28/2018		1.50			2,988,934
	4,500	M	7/26/2018		1.76			4,474,520
	4,200	M	8/2/2018		1.79			4,174,283
	4,000	M	8/16/2018		1.51			3,976,998
	Total Value of Short-Term U.S. Government Obligations (cost $67,233,598)							67,233,598
			U.S. GOVERNMENT AGENCY OBLIGATIONS—34.5%
			Federal Home Loan Bank:
	5,500	M	4/4/2018		1.54			5,499,293
	5,750	M	4/11/2018		1.70			5,747,283
	3,450	M	4/18/2018		1.45			3,447,639
	8,000	M	4/30/2018		1.59			7,989,739
	8,000	M	4/30/2018		1.61			7,989,606
	8,300	M	5/8/2018		1.71			8,285,406
	6,000	M	5/22/2018		1.75			5,985,158
	1,396	M	6/8/2018		1.48			1,392,095
	Total Value of U.S. Government Agency Obligations (cost $46,336,219)							46,336,219

55

Portfolio of Investments (continued)

GOVERNMENT CASH MANAGEMENT FUND

March 31, 2018

Principal Amount			Security	Interest Rate*			Value
			VARIABLE AND FLOATING RATE NOTES—15.3%
			Federal Farm Credit Bank:
$	1,500	M	9/18/2018		2.15	%	$	1,501,388
	5,000	M	10/19/2018		1.73			5,006,735
			Federal Home Loan Bank:
	5,200	M	8/24/2018		1.75			5,199,985
	2,630	M	9/14/2018		1.98			2,631,123
	5,000	M	10/5/2018		1.55			5,000,000
	1,225	M	10/26/2018		1.54			1,225,078
	Total Value of Variable and Floating Rate Notes (cost $20,564,309)							20,564,309
	Total Value of Investments (cost $134,134,126)**				100.0	%		134,134,126
	Other Assets, Less Liabilities				—			61,462
	Net Assets				100.0	%	$	134,195,588

* The interest rates shown are the effective rates at the time of purchase by the Fund. The interest rates shown on floating rate notes are adjusted periodically; the rates shown are the rates in effect at March 31, 2018.

** Aggregate cost for federal income tax purposes is the same.

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

56

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1		Level 2		Level 3		Total
Short-Term U.S. Government Obligations	$	—	$	67,233,598	$	—	$	67,233,598
U.S. Government Agency Obligations		—		46,336,219		—		46,336,219
Variable and Floating Rate Notes:
U.S. Government Agency Obligations		—		20,564,309		—		20,564,309
Total Investments in Securities	$	—	$	134,134,126	$	—	$	134,134,126

There were no transfers into or from Level 1 and Level 2 by the Fund during the period ended March 31, 2018. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

57

Fund Expenses (unaudited)

INTERNATIONAL OPPORTUNITIES BOND FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.41%
Actual		$1,000.00	$ 1,038.72	$ 7.17
Hypothetical**		$1,000.00	$ 1,017.90	$ 7.09
Advisor Class Shares	1.10%
Actual		$1,000.00	$ 1,040.37	$ 5.60
Hypothetical**		$1,000.00	$ 1,019.45	$ 5.54
Institutional Class Shares	0.94%
Actual		$1,000.00	$ 1,040.41	$ 4.78
Hypothetical**		$1,000.00	$ 1,020.24	$ 4.73

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived and/or assumed.
**	Assumed rate of return of 5% before expenses

Portfolio Composition

BY SECTOR

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

58

Portfolio of Investments

INTERNATIONAL OPPORTUNITIES BOND FUND

March 31, 2018

Principal Amount				Security	Value
				SOVEREIGN BONDS—53.9%
				Mexico—12.3%
				United Mexican States:
	288	M	MXN	7.75%, 11/23/2034	$	1,619,010
	1,248	M	MXN	7.75%, 11/13/2042		6,974,315
	166	M	MXN	8%, 11/7/2047 (c)		953,602
	724	M	MXN	8.5%, 5/31/2029		4,323,650
	851	M	MXN	8.5%, 11/18/2038		5,117,749
						18,988,326
				Malaysia—7.4%
				Federation of Malaysia:
	14,190	M	MYR	3.48%, 3/15/2023		3,622,353
	1,750	M	MYR	3.62%, 11/30/2021		455,190
	7,020	M	MYR	3.659%, 10/15/2020		1,827,033
	6,190	M	MYR	3.882%, 3/10/2022		1,619,685
	5,330	M	MYR	3.899%, 11/16/2027		1,372,340
	890	M	MYR	3.9%, 11/30/2026		228,367
	2,405	M	MYR	3.955%, 9/15/2025		622,037
	6,540	M	MYR	4.048%, 9/30/2021		1,718,356
						11,465,361
				Poland—7.3%
				Republic of Poland:
	17,325	M	PLN	Zero Coupon, 4/25/2019 (Effecitve Yield 1.551%) (d)		4,992,043
	14,085	M	PLN	1.5%, 4/25/2020		4,119,569
	7,330	M	PLN	3.25%, 7/25/2019		2,195,692
						11,307,304
				South Africa—5.6%
				Republic of South Africa:
	54,690	M	ZAR	6.5%, 2/28/2041		3,571,001
	60,755	M	ZAR	8.75%, 2/28/2048		5,073,629
						8,644,630

59

Portfolio of Investments (continued)

INTERNATIONAL OPPORTUNITIES BOND FUND

March 31, 2018

Principal Amount				Security	Value
				Colombia—4.6%
	18,540,000	M	COP	Titulos De Tesoreria, 7.5%, 8/26/2026	$	7,150,421
				Brazil—4.4%
	21	M	BRL	Nota Do Tesouro Nacional, 10%, 1/1/2027		6,725,052
				United Kingdom—4.1%
	4,430	M	GBP	United Kingdom Gilt, 1.25%, 7/22/2018		6,229,695
				Indonesia—3.1%
				Republic of Indonesia:
	34,800,000	M	IDR	8.375%, 3/15/2034		2,755,184
	23,800,000	M	IDR	9%, 3/15/2029		1,989,049
						4,744,233
				Peru—1.9%
	8,570	M	PEN	Bonos De Tesoreria, 6.15%, 8/12/2032(e)		2,928,063
				Australia—1.8%
	3,625	M	AUD	Commonwealth of Australia, 2.75%, 10/21/2019		2,818,677
				Turkey—1.4%
	9,080	M	TRY	Republic of Turkey, 10.6%, 2/11/2026		2,088,586
	Total Value of Sovereign Bonds (cost $88,432,222)					83,090,348
				CORPORATE BONDS—17.3%
				United States—15.4%
	2,100	M	USD	Citibank NA, 2.1888%, 2/12/2021 (a)		2,098,887
	1,650	M	USD	Citigroup, Inc., 2.4980%, 1/10/2020 (a)		1,660,053
	2,395	M	USD	Daimler Finance NA, LLC, 2.3539%, 2/22/2021 (a)(b)		2,397,496
				Ford Motor Credit Co., LLC:
	2,055	M	USD	2.7039%, 1/9/2020 (a)		2,071,619
	930	M	USD	2.8346%, 4/5/2021 (a)		930,204
	2,505	M	USD	General Motors Financial Co., Inc., 2.6502%, 4/13/2020 (a)		2,529,286
	4,180	M	USD	Goldman Sachs Group, Inc., 2.5562%, 2/23/2023 (a)		4,166,536
	1,505	M	USD	HP Enterprise Co., 6.35%, 10/15/2045		1,613,298
	735	M	USD	JP Morgan Chase Bank NA, 2.6725%, 9/21/2018 (a)		735,838

60

Principal Amount				Security	Value
	1,410	M	USD	Metropolitan Life Global Funding I, 2.3975%, 9/19/2019 (a)(b)	$	1,412,191
	2,410	M	USD	NBCUniversal Enterprise, Inc., 2.0947%, 4/1/2021 (a)(b)		2,418,288
	1,760	M	USD	Wells Fargo & Co., 2.7775%, 7/26/2021 (a)		1,790,899
						23,824,595
				Australia—1.9%
	1,395	M	USD	Macquarie Bank, Ltd., 2.0469%, 4/4/2019 (a)(b)		1,396,267
	1,500	M	USD	National Australia Bank, Ltd., 2.4139%, 5/22/2020 (a)(b)		1,506,012
						2,902,279
	Total Value of Corporate Bonds (cost $26,524,536)					26,726,874
				U.S. GOVERNMENT OBLIGATIONS—9.5%
				United States
				U.S. Treasury Notes:
	5,305	M	USD	1.8279%, 7/31/2019 (a)		5,311,101
	9,310	M	USD	1.8379%, 4/30/2019 (a)		9,319,999
	Total Value of U.S. Government Obligations (cost $14,619,852)					14,631,100
				GOVERNMENT REGIONAL AGENCY—5.1%
				Australia—3.9%
	3,700	M	AUD	Queensland Treasury Corp., 4%, 6/21/2019 (e)		2,909,610
	1,010	M	AUD	New South Wales Treasury Corp., 3.5%, 3/20/2019		787,324
	2,740	M	AUD	Western Australia Treasury Corp., 7%, 10/15/2019		2,259,143
						5,956,077
				Norway—1.2%
	1,872	M	USD	Kommunalbanken AS, 2.475%, 6/16/2020 (a)(b)		1,885,426
	Total Value of Government Regional Agency (cost $8,056,274)					7,841,503

61

Portfolio of Investments (continued)

INTERNATIONAL OPPORTUNITIES BOND FUND

March 31, 2018

Principal Amount				Security		Value
				SUPRANATIONALS—3.6%
				United Kingdom—2.9%
	4,410	M	USD	Inter-American Development Bank, 1.7179%, 10/9/2020 (a)		$	4,409,316
				Venezuela—.7%
	1,075	M	USD	Corp. Andina De Formento, 2%, 5/10/2019			1,068,286
	Total Value of Supranational (cost $5,480,553)						5,477,602
				GOVERNMENT GUARANTEED PROGRAM—.9%
				France
	1,400	M	USD	Dexia Credit Local SA of New York, NY, 2.2246%, 6/5/2018 (cost $1,400,000) (a)(b)			1,400,238
				SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS—7.0%
	5,235	M	USD	Fannie Mae, 1.540%, 4/16/2018			5,231,639
				Federal Home Loan Bank:
	2,785	M	USD	1.548%, 4/4/2018			2,784,744
	2,835	M	USD	1.545%, 4/6/2018			2,834,481
	Total Value of Short-Term U.S. Government Agency Obligations (cost $10,850,669)						10,850,864
	Total Value of Investments (cost $155,364,106)				97.3%		150,018,529
	Other Assets, Less Liabilities				2.7		4,170,068
	Net Assets				100.0%	$	154,188,597

(a) Interest rates are determined and reset periodically. The interest rates above are the rates in effect at March 31, 2018.

(b) Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 4).

(c) A portion or all of the security purchased on a when-issued or delayed delivery basis.

(d) The effective yields shown for the zero coupon obligations are the effective yields at March 31, 2018.

(e) Security exempt from registration under Regulation S of the Securities Act of 1933 (see Note 4).

62

At March 31, 2018, International Opportunities Bond Fund has open foreign currency contracts as described below.

The unrealized appreciation (depreciation) on the open contracts were as follows:

International Opportunities Bond Fund

Counterparty	Settlement Date	Foreign Currency	Receive (Deliver)			Asset		Liability		Unrealized Appreciation (Depreciation)
HSBC	4/11/18	ZAR		(19,900,000	)	$	1,590,448	$	1,680,921	$	(90,473	)
BCI	4/11/18	ZAR		(3,900,000	)		320,213		329,427		(9,214	)
CITI	4/11/18	ZAR		(34,500,000	)		2,879,490		2,914,159		(34,669	)
JPM	4/13/18	TRY		2,900,000			735,052		760,098		(25,046	)
BCI	4/13/18	TRY		8,500,000			2,154,462		2,150,940		3,522
MSD	4/17/18	PLN		9,520,000			2,781,064		2,777,818		3,246
HSBC	4/17/18	PLN		(15,000,000	)		4,419,304		4,381,929		37,375
HSBC	4/20/18	NOK		49,100,000			6,263,714		6,248,409		15,305
HSBC	4/20/18	NOK		(32,200,000	)		4,082,745		4,107,771		(25,026	)
HSBC	4/23/18	SEK		30,100,000			3,604,877		3,778,369		(173,492	)
GS	5/9/18	CAD		1,570,000			1,218,613		1,280,712		(62,099	)
HSBC	5/9/18	CAD		(1,570,000	)		1,213,076		1,218,613		(5,537	)
JPM	5/11/18	JPY		1,580,000,000			14,848,926		14,654,461		194,465
JPM	5/11/18	JPY		644,000,000			6,052,347		6,060,395		(8,048	)
HSBC	5/15/18	NOK		40,100,000			5,115,579		5,042,122		73,457
MSD	5/17/18	AUD		(4,670,000	)		3,655,629		3,586,790		68,839
JPM	5/18/18	EUR		(630,000	)		783,433		775,184		8,249
JPM	5/18/18	EUR		570,000			701,357		704,047		(2,690	)
JPM	5/18/18	EUR		60,000			73,827		74,183		(356	)
CITI	6/15/18	GBP		8,320,000			11,672,933		11,603,280		69,653
HSBC	6/21/18	SEK		52,700,000			6,311,528		6,468,798		(157,270	)
Net Unrealized loss on open foreign exchange contracts										$	(119,809	)

A summary of abbreviations for counterparties to foreign currency contracts are as follows:

BCI	Barclays Capital, Inc.
CITI	Citigroup Global Markets
GS	Goldman Sachs & Co.
HSBC	HSBC Bank USA N.A.
JPM	J.P. Morgan Securities, Inc.
MSD	Morgan Stanley
FBO	Barclays Capital, Inc.
MSD	Morgan Stanley

63

Portfolio of Investments (continued)

INTERNATIONAL OPPORTUNITIES BOND FUND

March 31, 2018

Summary of Abbreviations:

AUD	Australian Dollar
BRL	BRL Brazillian Real
CAD	Canadian Dollar
COP	Colombian Peso
EUR	EUR Euro
GBP	British Pound
IDR	Indonesian Rupiah
JPY	Japanese Yen
MXN	Mexican Peso
MYR	Malaysian Ringgit
NOK	Norwegian Krone
PLN	Polish Zloty
SEK	Swedish Krona
TRY	Turkish Lira
USD	United States Dollar
ZAR	South African Rand

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

64

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1		Level 2			Level 3		Total
Sovereign Bonds
Mexico	$	—	$	18,988,326		$	—	$	18,988,326
Malaysia		—		11,465,361			—		11,465,361
Poland		—		11,307,304			—		11,307,304
South Africa		—		8,644,630			—		8,644,630
Colombia		—		7,150,421			—		7,150,421
Brazil		—		6,725,052			—		6,725,052
United Kingdom		—		6,229,695			—		6,229,695
Indonesia		—		4,744,233			—		4,744,233
Peru		—		2,928,063			—		2,928,063
Australia		—		2,818,677			—		2,818,677
Turkey		—		2,088,586			—		2,088,586
Corporate Bonds
United States		—		23,824,595			—		23,824,595
Australia		—		2,902,279			—		2,902,279
U.S. Government Obligations		—		14,631,100			—		14,631,100
Government Regional Agency
Australia		—		5,956,077			—		5,956,077
Norway		—		1,885,426			—		1,885,426
Supranationals
United Kingdom		—		4,409,316			—		4,409,316
Venezuela		—		1,068,286			—		1,068,286
Government Guaranteed Program
France		—		1,400,238			—		1,400,238
Short-Term U.S Government Agency Obligations		—		10,850,864			—		10,850,864
Total Investments in Securities	$	—	$	150,018,529		$	—	$	150,018,529
Other Financial Instruments*	$	—	$	(119,809	)	$	—	$	(119,809	)

* Other financial instruments are foreign exchange contracts and are considered derivative instruments, which are valued at the net unrealized depreciation on the instruments.

During the period ended March 31, 2018, there were no transfers between Level 1 investments and Level 2 investments that had a material impact to the Fund. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

65

Fund Expenses (unaudited)

INVESTMENT GRADE FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.05%
Actual		$1,000.00	$ 984.74	$ 5.20
Hypothetical**		$1,000.00	$ 1,019.69	$ 5.29
Class B Shares	1.92%
Actual		$1,000.00	$ 942.35	$ 9.30
Hypothetical**		$1,000.00	$ 1,015.36	$ 9.65
Advisor Class Shares	0.72%
Actual		$1,000.00	$ 987.35	$ 3.57
Hypothetical**		$1,000.00	$ 1,021.34	$ 3.63
Institutional Class Shares	0.64%
Actual		$1,000.00	$ 987.64	$ 3.17
Hypothetical**		$1,000.00	$ 1,021.74	$ 3.23

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
**	Assumed rate of return of 5% before expenses

Portfolio Composition

TOP TEN SECTORS

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

66

Portfolio of Investments

INVESTMENT GRADE FUND

March 31, 2018

Principal Amount			Security	Value
			CORPORATE BONDS—97.8%
			Aerospace/Defense—1.5%
$	275	M	Bombardier, Inc., 8.75%, 12/1/2021 (a)	$	302,844
	5,000	M	Rockwell Collins, Inc., 3.2%, 3/15/2024		4,866,480
	4,000	M	Rolls-Royce, PLC, 3.625%, 10/14/2025 (a)		4,022,460
	275	M	TransDigm, Inc., 6.5%, 5/15/2025		278,438
					9,470,222
			Automotive—1.8%
	275	M	American Axle & Manufacturing, Inc., 6.25%, 4/1/2025		275,344
	275	M	Asbury Automotive Group, Inc., 6%, 12/15/2024		281,187
	275	M	Cooper Standard Automotive, Inc., 5.625%, 11/15/2026 (a)		275,000
	2,000	M	Daimler Finance NA, LLC, 3.35%, 2/22/2023 (a)		1,994,318
	545	M	Dana Holding Corp., 5.5%, 12/15/2024		555,900
	3,600	M	Lear Corp., 5.25%, 1/15/2025		3,805,484
	4,000	M	O’Reilly Automotive, Inc., 3.55%, 3/15/2026		3,918,724
					11,105,957
			Building Materials—.1%
	275	M	Building Materials Corp., 5.375%, 11/15/2024 (a)		279,812
	150	M	Griffon Corp., 5.25%, 3/1/2022		151,170
					430,982
			Chemicals—3.0%
	4,000	M	Agrium, Inc., 3.375%, 3/15/2025		3,889,120
	275	M	Blue Cube Spinco, Inc., 10%, 10/15/2025		324,500
	275	M	Chemours Co., 6.625%, 5/15/2023		289,781
	275	M	CVR Partners, LP, 9.25%, 6/15/2023 (a)		293,824
	4,020	M	Dow Chemical Co., 3.5%, 10/1/2024		3,989,239
	4,000	M	LYB International Finance Co. BV, 3.5%, 3/2/2027		3,846,084
	5,000	M	LyondellBasell Industries NV, 6%, 11/15/2021		5,401,580
	275	M	Rain CII Carbon, LLC, 7.25%, 4/1/2025 (a)		291,500
	270	M	Rayonier AM Products, Inc., 5.5%, 6/1/2024 (a)		265,950
					18,591,578

67

Portfolio of Investments (continued)

INVESTMENT GRADE FUND

March 31, 2018

Principal Amount			Security	Value
			Consumer Non-Durables—.0%
$	275	M	Reynolds Group Holdings, Inc., 5.125%, 7/15/2023 (a)	$	278,011
			Energy—11.4%
			Andeavor Logistics, LP:
	2,700	M	3.5%, 12/1/2022		2,656,157
	1,800	M	5.25%, 1/15/2025		1,832,220
	275	M	Blue Racer Midstream, LLC, 6.125%, 11/15/2022 (a)		281,187
	4,300	M	BP Capital Markets, PLC, 3.216%, 11/28/2023		4,265,828
	5,000	M	Canadian Oil Sands, Ltd., 7.75%, 5/15/2019 (a)		5,251,400
	5,000	M	Continental Resources, Inc., 5%, 9/15/2022		5,081,250
	4,000	M	Enable Midstream Partners, LP, 4.4%, 3/15/2027		3,921,960
	5,000	M	Enbridge Energy Partners, LP, 4.2%, 9/15/2021		5,090,145
	550	M	Endeavor Energy Resources, LP, 5.75%, 1/30/2028 (a)		550,000
	4,031	M	Enterprise Products Operating, 7.55%, 4/15/2038		5,460,405
	270	M	Exterran Partners, LP, 6%, 10/1/2022		269,325
	275	M	Global Partners, LP, 6.25%, 7/15/2022		275,000
			Kinder Morgan Energy Partners, LP:
	3,000	M	3.5%, 3/1/2021		3,000,891
	5,000	M	3.45%, 2/15/2023		4,917,550
			Kinder Morgan, Inc.:
	1,750	M	5.625%, 11/15/2023 (a)		1,874,553
	2,250	M	4.3%, 3/1/2028		2,244,670
	5,000	M	Magellan Midstream Partners, LP, 5%, 3/1/2026		5,375,365
	100	M	Matador Resources Co., 6.875%, 4/15/2023		104,250
	275	M	Murphy Oil Corp., 6.875%, 8/15/2024		287,375
	275	M	NGPL Pipeco, LLC, 4.875%, 8/15/2027 (a)		271,906
	4,300	M	Noble Energy, Inc., 3.85%, 1/15/2028		4,236,450
	275	M	Oasis Petroleum, Inc., 6.875%, 1/15/2023		279,469
	4,000	M	ONEOK Partners, LP, 3.375%, 10/1/2022		3,941,196
	75	M	Parkland Fuel Corp., 6%, 4/1/2026 (a)		75,563
	275	M	PDC Energy, Inc., 6.125%, 9/15/2024		281,875
	275	M	SESI, LLC, 7.75%, 9/15/2024 (a)		285,313
			Valero Energy Corp.:
	4,000	M	9.375%, 3/15/2019		4,241,996
	3,000	M	6.625%, 6/15/2037		3,799,059

68

Principal Amount			Security	Value
$	275	M	Whiting Petroleum Corp., 5.75%, 3/15/2021	$	278,432
	270	M	WPX Energy, Inc., 5.25%, 9/15/2024		267,300
					70,698,090
			Financial Services—11.3%
			American International Group, Inc.:
	3,700	M	3.75%, 7/10/2025		3,649,073
	2,000	M	4.7%, 7/10/2035		2,072,150
	5,400	M	Assured Guaranty U.S. Holding, Inc., 5%, 7/1/2024		5,764,154
	4,500	M	Brookfield Finance, Inc., 4%, 4/1/2024		4,538,988
	3,750	M	ERAC USA Finance, LLC, 4.5%, 8/16/2021 (a)		3,890,445
	6,200	M	Ford Motor Credit Co., LLC, 8.125%, 1/15/2020		6,714,966
	5,000	M	GE Capital International Funding Services, Ltd., 4.418%, 11/15/2035		4,896,620
	6,400	M	General Electric Capital Corp., 4.65%, 10/17/2021		6,685,478
	4,000	M	General Motors Financial Co., Inc., 5.25%, 3/1/2026		4,231,480
	4,500	M	International Lease Finance Corp., 8.25%, 12/15/2020		5,013,279
	5,000	M	Key Bank NA, 3.4%, 5/20/2026		4,840,575
	4,000	M	Liberty Mutual Group, Inc., 4.95%, 5/1/2022 (a)		4,227,532
	3,000	M	National City Corp., 6.875%, 5/15/2019		3,132,279
	5,135	M	Protective Life Corp., 7.375%, 10/15/2019		5,465,139
	3,000	M	Prudential Financial, Inc., 7.375%, 6/15/2019		3,160,833
	2,000	M	Travelers Cos., Inc., 4.05%, 3/7/2048		2,023,968
					70,306,959
			Financials—22.6%
	275	M	Ally Financial, Inc., 8%, 11/1/2031		336,875
			Bank of America Corp.:
	5,250	M	4.1%, 7/24/2023		5,423,476
	4,725	M	5.875%, 2/7/2042		5,906,808
			Barclays Bank, PLC:
	2,000	M	5.125%, 1/8/2020		2,066,822
	3,800	M	3.75%, 5/15/2024		3,809,253
	3,200	M	Capital One Financial Corp., 3.75%, 4/24/2024		3,180,880

69

Portfolio of Investments (continued)

INVESTMENT GRADE FUND

March 31, 2018

Principal Amount			Security	Value
			Financials (continued)
			Citigroup, Inc.:
$	2,250	M	8.5%, 5/22/2019	$	2,391,113
	6,200	M	4.5%, 1/14/2022		6,448,260
	4,000	M	3.4%, 5/1/2026		3,872,836
	5,000	M	4.3%, 11/20/2026		5,011,680
	275	M	DAE Funding, LLC, 5%, 8/1/2024 (a)		260,906
	3,000	M	Deutsche Bank AG, 3.7%, 5/30/2024		2,899,809
			Goldman Sachs Group, Inc.:
	7,700	M	5.75%, 1/24/2022		8,336,120
	3,000	M	3.625%, 1/22/2023		3,013,653
	2,700	M	3.272%, 9/29/2025		2,601,409
	4,700	M	3.5%, 11/16/2026		4,533,145
	4,050	M	3.814%, 4/23/2029		3,975,039
	4,550	M	6.125%, 2/15/2033		5,476,903
	275	M	Icahn Enterprises, LP, 6.75%, 2/1/2024		280,844
	275	M	Intesa Sanpaolo SpA, 5.71%, 1/15/2026 (a)		276,410
			JPMorgan Chase & Co.:
	2,500	M	4.5%, 1/24/2022		2,602,355
	9,450	M	3.54%, 5/1/2028		9,246,532
	5,500	M	6.4%, 5/15/2038		7,177,242
	275	M	Ladder Capital Finance Holdings, LLLP, 5.25%, 10/1/2025 (a)		261,250
			Morgan Stanley:
	5,750	M	5.5%, 7/28/2021		6,145,997
	3,000	M	4%, 7/23/2025		3,030,792
	3,600	M	3.625%, 1/20/2027		3,527,665
	150	M	Navient Corp., 5.875%, 3/25/2021		153,938
			Springleaf Finance Corp.:
	175	M	5.625%, 3/15/2023		172,156
	75	M	6.875%, 3/15/2025		75,469
			U.S. Bancorp:
	4,000	M	3.6%, 9/11/2024		4,013,164
	2,700	M	3.1%, 4/27/2026		2,580,331
	4,000	M	UBS AG, 4.875%, 8/4/2020		4,163,284
	3,000	M	UBS Group Funding (Switzerland) AG, 4.253%, 3/23/2028 (a)		3,025,494
	275	M	UniCredit SpA, 5.861%, 6/19/2032 (a)		279,870

70

Principal Amount			Security	Value
$	5,000	M	Visa, Inc., 3.15%, 12/14/2025	$	4,908,980
			Wells Fargo & Co.:
	8,600	M	3.45%, 2/13/2023		8,490,092
	3,250	M	4.75%, 12/7/2046		3,338,218
			Wells Fargo Bank NA:
	2,350	M	5.85%, 2/1/2037		2,864,948
	3,250	M	6.6%, 1/15/2038		4,308,252
					140,468,270
			Food/Beverage/Tobacco—3.7%
			Anheuser-Busch InBev Finance, Inc.:
	2,000	M	3.65%, 2/1/2026		1,991,456
	4,000	M	4.9%, 2/1/2046		4,330,760
	5,225	M	Bunge Ltd. Finance Corp., 8.5%, 6/15/2019		5,553,182
	6,000	M	Ingredion, Inc., 4.625%, 11/1/2020		6,215,862
	5,000	M	PepsiCo, Inc., 3.45%, 10/6/2046		4,607,875
	275	M	Pilgrim’s Pride Corp., 5.75%, 3/15/2025 (a)		267,743
	275	M	Post Holdings, Inc., 5.75%, 3/1/2027 (a)		274,313
					23,241,191
			Forest Products/Containers—.9%
	3,000	M	Packaging Corp. of America, 3.4%, 12/15/2027		2,875,710
	2,500	M	Rock-Tenn Co., 4.9%, 3/1/2022		2,633,202
	275	M	Sealed Air Corp., 6.875%, 7/15/2033 (a)		306,625
					5,815,537
			Gaming/Leisure—.2%
	150	M	CRC Escrow Issuer, LLC, 5.25%, 10/15/2025 (a)		144,177
	275	M	Golden Nugget, Inc., 6.75%, 10/15/2024 (a)		277,060
	275	M	IRB Holding Corp., 6.75%, 2/15/2026 (a)		270,215
	75	M	National CineMedia, LLC, 6%, 4/15/2022		76,125
	275	M	Viking Cruises, Ltd., 6.25%, 5/15/2025 (a)		276,375
					1,043,952

71

Portfolio of Investments (continued)

INVESTMENT GRADE FUND

March 31, 2018

Principal Amount			Security	Value
			Health Care—3.3%
$	275	M	Centene Corp., 5.625%, 2/15/2021	$	283,250
	275	M	CHS/Community Health Systems, Inc., 6.25%, 3/31/2023		254,719
			CVS Health Corp.:
	4,000	M	3.875%, 7/20/2025		3,971,520
	1,800	M	4.3%, 3/25/2028		1,811,237
	3,000	M	5.05%, 3/25/2048		3,167,712
	275	M	DaVita, Inc., 5.125%, 7/15/2024		268,984
	4,050	M	Express Scripts Holding Co., 4.75%, 11/15/2021		4,225,405
	275	M	HCA, Inc., 6.25%, 2/15/2021		289,438
	275	M	HealthSouth Corp., 5.75%, 11/1/2024		280,844
	25	M	inVentiv Group Holdings, Inc., 7.5%, 10/1/2024 (a)		26,688
	4,000	M	Laboratory Corp. of America Holdings, 3.75%, 8/23/2022		4,071,724
	275	M	LifePoint Health, Inc., 5.875%, 12/1/2023		278,699
	275	M	Mallinckrodt Finance SB, 5.75%, 8/1/2022 (a)		236,500
	275	M	Molina Healthcare, Inc., 4.875%, 6/15/2025 (a)		257,813
	300	M	Universal Hospital Services, Inc., 7.625%, 8/15/2020		303,750
			Valeant Pharmaceuticals International, Inc.:
	275	M	6.5%, 3/15/2022 (a)		284,969
	275	M	7.25%, 7/15/2022 (a)		276,031
					20,289,283
			Home Building—.0%
	75	M	William Lyon Homes, Inc., 6%, 9/1/2023 (a)		75,094
			Information Technology—2.9%
	275	M	Alliance Data Systems Corp., 5.375%, 8/1/2022 (a)		276,375
	3,500	M	Apple, Inc., 3%, 11/13/2027		3,356,258
	275	M	CommScope Technologies, LLC, 6%, 6/15/2025 (a)		287,512
	4,000	M	Corning, Inc., 7.25%, 8/15/2036		4,888,068
			Diamond 1 Finance Corp.:
	8,550	M	4.42%, 6/15/2021 (a)		8,776,669
	75	M	5.875%, 6/15/2021 (a)(b)		77,250
	275	M	Rackspace Hosting, Inc., 8.625%, 11/15/2024 (a)		272,250
	275	M	Solera, LLC, 10.5%, 3/1/2024 (a)		307,313
					18,241,695

72

Principal Amount			Security	Value
			Manufacturing—2.4%
$	275	M	ATS Automation Tooling Systems, Inc., 6.5%, 6/15/2023 (a)	$	288,062
	1,800	M	CRH America Finance, Inc., 3.95%, 4/4/2028 (a)(b)		1,798,020
			CRH America, Inc.:
	5,000	M	8.125%, 7/15/2018		5,075,460
	2,250	M	3.4%, 5/9/2027 (a)		2,159,532
	275	M	Grinding Media, Inc., 7.375%, 12/15/2023 (a)		289,438
	5,000	M	Johnson Controls International, PLC, 5%, 3/30/2020		5,205,935
	275	M	United Rentals, Inc., 4.625%, 10/15/2025		268,125
					15,084,572
			Media-Broadcasting—2.1%
	1,800	M	ABC, Inc., 8.75%, 8/15/2021		2,113,974
			Comcast Corp.:
	4,300	M	2.75%, 3/1/2023		4,189,241
	5,800	M	4.25%, 1/15/2033		6,019,292
	275	M	Nexstar Broadcasting, Inc., 5.625%, 8/1/2024 (a)		270,105
	275	M	Sirius XM Radio, Inc., 6%, 7/15/2024 (a)		283,421
					12,876,033
			Media-Cable TV—.5%
	275	M	Altice Financing SA, 6.625%, 2/15/2023 (a)		272,937
	275	M	Altice U.S. Finance I Corp., 5.375%, 7/15/2023 (a)		279,262
			CCO Holdings, LLC:
	275	M	5.125%, 2/15/2023		277,475
	275	M	5.875%, 4/1/2024 (a)		280,500
	300	M	Clear Channel Worldwide Holdings, Inc. - Series “A”, 6.5%, 11/15/2022		306,000
	400	M	CSC Holdings, LLC, 10.125%, 1/15/2023 (a)		445,000
	275	M	DISH DBS Corp., 5%, 3/15/2023		248,188
	275	M	Gray Television, Inc., 5.875%, 7/15/2026 (a)		268,125
	275	M	Midcontinent Communications & Finance Corp., 6.875%, 8/15/2023 (a)		290,469
	275	M	Radiate Holdco, LLC, 6.875%, 2/15/2023 (a)		267,438
					2,935,394

73

Portfolio of Investments (continued)

INVESTMENT GRADE FUND

March 31, 2018

Principal Amount			Security	Value
			Media-Diversified—.7%
$	275	M	Outdoor Americas Capital, LLC, 5.875%, 3/15/2025	$	279,812
	4,000	M	Time Warner, Inc., 3.6%, 7/15/2025		3,898,492
	275	M	Tribune Media Co., 5.875%, 7/15/2022		280,156
					4,458,460
			Metals/Mining—2.7%
	150	M	AK Steel Corp., 7%, 3/15/2027		147,375
	5,000	M	Arconic, Inc., 6.15%, 8/15/2020		5,256,250
	275	M	Big River Steel, LLC, 7.25%, 9/1/2025 (a)		286,000
	250	M	Cleveland-Cliffs Inc., 4.875%, 1/15/2024 (a)		243,125
	275	M	Commercial Metals Co., 4.875%, 5/15/2023		274,953
	5,000	M	Glencore Funding, LLC, 4.625%, 4/29/2024 (a)		5,129,000
	275	M	HudBay Minerals, Inc., 7.25%, 1/15/2023 (a)		286,688
	125	M	Joseph T. Ryerson & Son, Inc., 11%, 5/15/2022 (a)		138,125
	4,200	M	Newmont Mining Corp., 5.125%, 10/1/2019		4,323,417
	275	M	Novelis, Inc., 5.875%, 9/30/2026 (a)		270,188
	270	M	SunCoke Energy Partners, LP, 7.5%, 6/15/2025 (a)		279,450
	50	M	United States Steel Corp., 6.25%, 3/15/2026		50,000
					16,684,571
			Real Estate—9.6%
	4,600	M	Alexandria Real Estate Equities, Inc., 3.95%, 1/15/2028		4,501,459
	4,000	M	Boston Properties, LP, 5.875%, 10/15/2019		4,155,472
			Digital Realty Trust, LP:
	2,700	M	5.25%, 3/15/2021		2,843,240
	2,700	M	4.75%, 10/1/2025		2,823,120
	2,800	M	Duke Realty Corp., 3.25%, 6/30/2026		2,689,478
	275	M	Equinix, Inc., 5.375%, 4/1/2023		282,219
	4,000	M	ERP Operating, LP, 3.375%, 6/1/2025		3,953,176
	3,500	M	Essex Portfolio, LP, 3.875%, 5/1/2024		3,525,802
	270	M	Geo Group, Inc., 5.875%, 10/15/2024		268,650
	275	M	Greystar Real Estate Partners,, 5.75%, 12/1/2025 (a)		275,000
	2,200	M	HCP, Inc., 4.25%, 11/15/2023		2,254,833
	550	M	Iron Mountain, Inc., 5.75%, 8/15/2024		535,563

74

Principal Amount			Security	Value
			Realty Income Corp.:
$	5,528	M	3.25%, 10/15/2022	$	5,490,188
	1,800	M	4.125%, 10/15/2026		1,819,715
	3,000	M	Simon Property Group, LP, 3.375%, 10/1/2024		2,963,529
	2,000	M	STORE Capital Corp., 4.5%, 3/15/2028		1,990,508
	5,000	M	Tanger Properties, LP, 3.125%, 9/1/2026		4,593,320
	4,000	M	Ventas Realty, LP, 4.75%, 6/1/2021		4,164,828
	4,125	M	Vornado Realty, LP, 3.5%, 1/15/2025		3,977,535
	6,500	M	Welltower, Inc., 4%, 6/1/2025		6,504,803
					59,612,438
			Retail-General Merchandise—2.4%
	25	M	1011778 B.C., ULC, 4.625%, 1/15/2022 (a)		25,125
			Amazon.com, Inc.:
	1,800	M	3.15%, 8/22/2027 (a)		1,740,209
	4,000	M	4.8%, 12/5/2034		4,443,860
	1,300	M	4.05%, 8/22/2047 (a)		1,306,575
	275	M	AmeriGas Partners, LP, 5.5%, 5/20/2025		266,750
	5,300	M	Home Depot, Inc., 5.875%, 12/16/2036		6,823,522
	50	M	J.C. Penney Co., Inc., 8.625%, 3/15/2025		47,125
	275	M	KFC Holding Co., LLC, 5%, 6/1/2024 (a)		273,969
					14,927,135
			Schools—.8%
	4,600	M	George Washington University, 4.126%, 9/15/2048(b)		4,643,369
			Services—.1%
	400	M	AECOM, 5.125%, 3/15/2027		386,280
	275	M	Cimpress NV, 7%, 4/1/2022 (a)		288,063
	75	M	First Data Corp., 5.375%, 8/15/2023 (a)		76,500
					750,843

75

Portfolio of Investments (continued)

INVESTMENT GRADE FUND

March 31, 2018

Principal Amount			Security	Value
			Telecommunications—2.5%
			AT&T, Inc.:
$	4,500	M	4.25%, 3/1/2027	$	4,557,163
	2,700	M	5.3%, 8/14/2058		2,733,917
	275	M	CenturyLink, Inc., 5.8%, 3/15/2022		269,844
	275	M	Cincinnati Bell, Inc., 7%, 7/15/2024 (a)		247,500
			Frontier Communications Corp.:
	50	M	10.5%, 9/15/2022		42,067
	25	M	8.5%, 4/1/2026 (a)		24,250
	225	M	GCI, Inc., 6.875%, 4/15/2025		236,813
	275	M	Sprint Capital Corp., 6.875%, 11/15/2028		257,125
	7,100	M	Verizon Communications, Inc., 4.272%, 1/15/2036		6,817,384
	150	M	Zayo Group, LLC, 6.375%, 5/15/2025		155,813
					15,341,876
			Transportation—3.0%
	2,700	M	Aviation Capital Group, LLC, 3.5%, 11/1/2027 (a)		2,538,397
	275	M	BCD Acquisition, Inc., 9.625%, 9/15/2023 (a)		298,375
			Burlington Northern Santa Fe, LLC:
	1,800	M	5.75%, 5/1/2040		2,217,989
	4,000	M	5.15%, 9/1/2043		4,640,252
	3,000	M	Penske Truck Leasing Co., LP, 4.875%, 7/11/2022 (a)		3,160,446
	5,800	M	Southwest Airlines Co., 3%, 11/15/2026		5,466,152
	275	M	XPO Logistics, Inc., 6.5%, 6/15/2022 (a)		284,625
					18,606,236
			Utilities—8.0%
	275	M	Calpine Corp., 5.25%, 6/1/2026 (a)		266,406
	275	M	Cheniere Corpus Christi Holdings, 5.875%, 3/31/2025		288,750
	270	M	DCP Midstream, LP, 7.375%, 12/29/2049		269,494
	5,000	M	Duke Energy Progress, Inc., 4.15%, 12/1/2044		5,145,795
	3,000	M	E.ON International Finance BV, 5.8%, 4/30/2018 (a)		3,006,873
	3,000	M	Electricite de France SA, 3.625%, 10/13/2025 (a)		3,004,371
	3,150	M	Entergy Arkansas, Inc., 4.95%, 12/15/2044		3,231,361
	4,000	M	Exelon Generation Co., LLC, 3.4%, 3/15/2022		4,006,964

76

Principal Amount			Security	Value
$	6,246	M	Great River Energy, 4.478%, 7/1/2030 (a)	$	6,766,744
	275	M	NRG Yield Operating, LLC, 5%, 9/15/2026		271,563
	3,850	M	Ohio Power Co., 5.375%, 10/1/2021		4,145,079
	4,550	M	Oklahoma Gas & Electric Co., 4%, 12/15/2044		4,594,490
	4,000	M	ONEOK, Inc., 7.5%, 9/1/2023		4,666,736
	1,543	M	San Diego Gas & Electric Co., 1.914%, 2/1/2022		1,505,683
			Sempra Energy:
	4,000	M	9.8%, 2/15/2019		4,235,916
	2,700	M	2.209%, 1/15/2021 (b)		2,702,292
	1,800	M	Valero Energy Partners, LP, 4.5%, 3/15/2028		1,814,094
					49,922,611
			Waste Management—.1%
	275	M	Covanta Holding Corp., 5.875%, 3/1/2024		270,188
	225	M	GFL Environmental, Inc., 5.375%, 3/1/2023 (a)		221,625
					491,813
			Wireless Communications—.2%
	275	M	Intelsat Jackson Holdings SA, 8%, 2/15/2024 (a)		289,781
	275	M	Level 3 Financing, Inc., 5.375%, 1/15/2024		268,642
	275	M	Sprint Communications, Inc., 6%, 11/15/2022		270,531
	275	M	T-Mobile USA, Inc., 6%, 3/1/2023		286,688
					1,115,642
	Total Value of Corporate Bonds (cost $609,047,750)				607,507,814

77

Portfolio of Investments (continued)

INVESTMENT GRADE FUND

March 31, 2018

	Principal Amount	Security		Value
		PASS-THROUGH CERTIFICATES—1.1%
		Transportation
$	4,500M	American Airlines 17-2 AA PTT, 3.35%, 10/15/2029		$	4,375,026
	2,700M	British Airways 2018-1 AA PTT, 3.8%, 9/20/2031 (a)(c)			2,700,000
	Total Value of Pass-Through Certificates (cost $7,200,000)				7,075,026
	Total Value of Investments (cost $616,247,750)		98.9%		614,582,840
	Other Assets, Less Liabilities		1.1		6,728,029
	Net Assets		100.0%	$	621,310,869

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 4).

(b) A portion or all of the security purchased on a when-issued or delayed delivery basis.

(c) Securities valued at fair value (see Note 1A)

Summary of Abbreviations:

LLLP	Limited Liability Limited Partnership
PTT	Pass-Through Trust
ULC	Unlimited Liability Corporation

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.  

See notes to financial statements

78

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1		Level 2		Level 3		Total
Corporate Bonds	$	—	$	607,507,814	$	—	$	607,507,814
Pass-Through Certificates		—		7,075,026		—		7,075,026
Total Investments in Securities*	$	—	$	614,582,840	$	—	$	614,582,840

* The Portfolio of Investments provides information on the industry categorization for corporate bonds and pass-through certificates.

There were no transfers into or from Level 1 and Level 2 by the Fund during the period ended March 31, 2018. Transfers, if any, between Levels are recognized at the end of the reporting period.

79

Fund Expenses (unaudited)

LIMITED DURATION BOND FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.02%
Actual		$1,000.00	$ 987.78	$ 5.05
Hypothetical**		$1,000.00	$ 1,019.84	$ 5.14
Advisor Class Shares	0.72%
Actual		$1,000.00	$ 988.05	$ 3.57
Hypothetical**		$1,000.00	$ 1,021.34	$ 3.63
Institutional Class Shares	0.58%
Actual		$1,000.00	$ 988.88	$ 2.88
Hypothetical**		$1,000.00	$ 1,022.04	$ 2.92

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived and/or assumed.
**	Assumed rate of return of 5% before expenses

Portfolio Composition

TOP TEN SECTORS

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

80

Portfolio of Investments

LIMITED DURATION BOND FUND

March 31, 2018

Principal Amount			Security	Value
			CORPORATE BONDS—73.9%
			Aerospace/Defense—.1%
$	50	M	Bombardier, Inc., 8.75%, 12/1/2021 (a)	$	55,062
	50	M	TransDigm, Inc., 6.5%, 5/15/2025		50,625
					105,687
			Automotive—3.4%
	60	M	American Axle & Manufacturing., Inc., 6.25%, 4/1/2025		60,075
	50	M	Asbury Automotive Group, Inc., 6%, 12/15/2024		51,125
	50	M	Cooper Standard Automotive, Inc., 5.625%, 11/15/2026 (a)		50,000
	450	M	Daimler Finance NA, LLC, 3.35%, 2/22/2023 (a)		448,722
	110	M	Dana Holding Corp., 5.5%, 12/15/2024		112,200
	700	M	General Motors Financial Co., Inc, 3.2702%, 1/14/2022†		717,109
	900	M	Hyundai Capital America, 2%, 7/1/2019 (a)		887,645
	2,000	M	O’Reilly Automotive, Inc., 4.625%, 9/15/2021		2,083,990
					4,410,866
			Building Materials—.1%
	50	M	Building Materials Corp., 5.375%, 11/15/2024 (a)		50,875
	25	M	Griffon Corp., 5.25%, 3/1/2022		25,195
					76,070
			Chemicals—1.0%
	50	M	Blue Cube Spinco, Inc., 10%, 10/15/2025		59,000
	75	M	Chemours Co., 6.625%, 5/15/2023		79,031
	50	M	CVR Partners, LP, 9.25%, 6/15/2023 (a)		53,422
	1,000	M	Dow Chemical Co., 4.25%, 11/15/2020		1,026,483
	65	M	Rain CII Carbon, LLC, 7.25%, 4/1/2025 (a)		68,900
	60	M	Rayonier AM Products, Inc., 5.5%, 6/1/2024 (a)		59,100
					1,345,936
			Consumer Non-Durables—.1%
	75	M	Reynolds Group Holdings, Inc., 5.125%, 7/15/2023 (a)		75,821
			Energy—2.9%
	50	M	Blue Racer Midstream, LLC, 6.125%, 11/15/2022 (a)		51,125

81

Portfolio of Investments (continued)

LIMITED DURATION BOND FUND

March 31, 2018

Principal Amount			Security	Value
			Energy (continued)
$	1,998	M	BP Capital Markets, PLC, 3.216%, 11/28/2023	$	1,982,122
	100	M	Endeavor Energy Resources, LP, 5.75%, 1/30/2028 (a)		100,000
	1,000	M	Enterprise Products Operating, 5.2%, 9/1/2020		1,047,254
	60	M	Exterran Partners, LP, 6%, 10/1/2022		59,850
	50	M	Global Partners, LP, 6.25%, 7/15/2022		50,000
	25	M	Matador Resources Co., 6.875%, 4/15/2023		26,063
	50	M	Murphy Oil Corp., 6.875%, 8/15/2024		52,250
	60	M	NGPL Pipeco, LLC, 4.875%, 8/15/2027 (a)		59,325
	50	M	Oasis Petroleum, Inc., 6.875%, 1/15/2023		50,813
	25	M	Parkland Fuel Corp., 6%, 4/1/2026 (a)		25,188
	50	M	PDC Energy, Inc., 6.125%, 9/15/2024		51,250
	50	M	SESI, LLC, 7.75%, 9/15/2024 (a)		51,875
	50	M	Whiting Petroleum Corp., 5.75%, 3/15/2021		50,624
	60	M	WPX Energy, Inc., 5.25%, 9/15/2024		59,400
					3,717,139
			Financial Services—7.6%
	1,825	M	Ford Motor Credit Co., LLC, 5%, 5/15/2018		1,829,433
	2,000	M	PNC Bank NA, 2.7%, 11/1/2022		1,937,518
	1,500	M	Protective Life Corp., 7.375%, 10/15/2019		1,596,438
	700	M	Prudential Financial, Inc., 7.375%, 6/15/2019		737,528
			Siemens Financieringsmaatschappij NV:
	750	M	1.45%, 5/25/2018 (a)		749,092
	1,000	M	1.7%, 9/15/2021 (a)		955,352
	1,025	M	State Street Bank & Trust Co., 5.25%, 10/15/2018		1,039,710
	900	M	SunTrust Bank, 2.59%, 1/29/2021 †		894,406
					9,739,477
			Financials—29.3%
	50	M	Ally Financial, Inc., 8%, 11/1/2031		61,250
			Bank of America Corp.:
	1,400	M	5.65%, 5/1/2018		1,403,545
	1,000	M	2.369%, 7/21/2021		981,615
	900	M	Bank of Montreal, 1.9%, 8/27/2021		864,842
	900	M	Bank of New York Mellon Corp., 2.05%, 5/3/2021		874,102

82

Principal Amount			Security	Value
$	700	M	Barclays Bank, PLC, 6.75%, 5/22/2019	$	730,598
	2,000	M	Capital One Financial Corp., 3.05%, 3/9/2022		1,963,144
			Citigroup, Inc.:
	250	M	8.5%, 5/22/2019		265,679
	1,000	M	2.65%, 10/26/2020		988,662
	1,000	M	2.876%, 7/24/2023†		974,031
	1,850	M	Citizens Bank, 2.25%, 3/2/2020		1,819,146
	50	M	DAE Funding, LLC, 5%, 8/1/2024 (a)		47,437
			Danske Bank A/S:
	1,000	M	2%, 9/8/2021 (a)		958,309
	800	M	2.7%, 3/2/2022 (a)		781,828
			Deutsche Bank AG of New York:
	1,000	M	2.7%, 7/13/2020		979,345
	900	M	3.15%, 1/22/2021		887,170
	1,000	M	DNB Bank ASA, 2.375%, 6/2/2021 (a)		974,608
			Goldman Sachs Group, Inc.:
	1,000	M	2.6%, 12/27/2020		985,685
	1,000	M	5.75%, 1/24/2022		1,082,613
	1,000	M	3.0746%, 6/5/2023†		1,005,876
			Icahn Enterprises, LP:
	50	M	6.25%, 2/1/2022		51,000
	50	M	6.75%, 2/1/2024		51,063
	1,000	M	ING Groep NV, 3.15%, 3/29/2022		987,373
			JPMorgan Chase & Co.:
	2,000	M	4.5%, 1/24/2022		2,081,884
	1,000	M	2.6452%, 4/25/2023†		1,004,403
	50	M	Ladder Capital Finance Holdings, LLLP, 5.25%, 10/1/2025 (a)		47,500
			Lloyds Bank, PLC:
	1,000	M	6.375%, 1/21/2021		1,088,112
	800	M	3%, 1/11/2022		788,176
	50	M	LPL Holdings, Inc., 5.75%, 9/15/2025 (a)		49,485
			Morgan Stanley:
	3,000	M	5.5%, 7/28/2021		3,206,607
	500	M	2.9247%, 1/20/2022†		506,240
	25	M	Navient Corp., 5.875%, 3/25/2021		25,656

83

Portfolio of Investments (continued)

LIMITED DURATION BOND FUND

March 31, 2018

Principal Amount			Security	Value
			Financials (continued)
$	1,000	M	Northern Trust Co., 6.5%, 8/15/2018	$	1,013,702
	1,340	M	Santander U.K., PLC, 2%, 8/24/2018		1,336,685
			Springleaf Finance Corp.:
	50	M	7.75%, 10/1/2021		54,313
	25	M	5.625%, 3/15/2023		24,594
	1,300	M	U.S. Bank NA, 2.125%, 10/28/2019		1,287,224
	2,000	M	UBS Group Funding (Switzerland) AG, 3.491%, 5/23/2023 (a)		1,978,234
	900	M	Wells Fargo Bank, NA, 2.6%, 1/15/2021		887,797
			Wells Fargo & Co.:
	1,500	M	3.45%, 2/13/2023		1,480,830
	1,000	M	3.00225%, 10/31/2023†		1,015,173
					37,595,536
			Food/Beverage/Tobacco—3.4%
	2,500	M	Bunge Ltd. Finance Corp., 8.5%, 6/15/2019		2,657,025
	1,000	M	Ingredion, Inc., 4.625%, 11/1/2020		1,035,977
	500	M	Philip Morris International, Inc., 5.65%, 5/16/2018		501,903
	50	M	Pilgrim’s Pride Corp., 5.75%, 3/15/2025 (a)		48,681
			Post Holdings, Inc.:
	10	M	5.5%, 3/1/2025 (a)		9,875
	50	M	5.75%, 3/1/2027 (a)		49,875
					4,303,336
			Forest Products/Containers—.7%
	900	M	Georgia-Pacific, LLC, 3.163%, 11/15/2021 (a)		900,226
	50	M	Sealed Air Corp., 6.875%, 7/15/2033 (a)		55,750
					955,976
			Gaming/Leisure—.1%
	25	M	CRC Escrow Issuer, LLC, 5.25%, 10/15/2025 (a)		24,029
	50	M	Golden Nugget, Inc., 6.75%, 10/15/2024 (a)		50,374
	50	M	IRB Holding Corp., 6.75%, 2/15/2026 (a)		49,130
	50	M	Viking Cruises, Ltd., 6.25%, 5/15/2025 (a)		50,250
					173,783

84

Principal Amount			Security	Value
			Health Care—2.7%
$	900	M	AstraZeneca, PLC, 2.375%, 6/12/2022	$	870,059
	50	M	Centene Corp., 5.625%, 2/15/2021		51,500
	50	M	CHS/Community Health Systems, Inc., 6.25%, 3/31/2023		46,312
	1,000	M	CVS Health Corp., 3.35%, 3/9/2021		1,006,141
	50	M	DaVita, Inc., 5.125%, 7/15/2024		48,906
	1,000	M	Gilead Sciences, Inc., 2.55%, 9/1/2020		992,274
	50	M	HCA, Inc., 6.25%, 2/15/2021		52,625
	50	M	HealthSouth Corp., 5.75%, 11/1/2024		51,063
	50	M	LifePoint Health, Inc., 5.875%, 12/1/2023		50,673
	50	M	Mallinckrodt Finance SB, 5.75%, 8/1/2022 (a)		43,000
	50	M	Molina Healthcare, Inc., 4.875%, 6/15/2025 (a)		46,875
	50	M	Universal Hospital Services, Inc., 7.625%, 8/15/2020		50,625
			Valeant Pharmaceuticals International, Inc.:
	50	M	6.5%, 3/15/2022 (a)		51,813
	50	M	7.25%, 7/15/2022 (a)		50,188
					3,412,054
			Home Building—.0%
	25	M	William Lyon Homes, Inc., 6%, 9/1/2023 (a)		25,031
			Information Technology—2.9%
	50	M	Alliance Data Systems Corp., 5.375%, 8/1/2022 (a)		50,250
	50	M	CommScope Technologies, LLC, 6%, 6/15/2025 (a)		52,275
			Diamond 1 Finance Corp.:
	750	M	3.48%, 6/1/2019 (a)		753,605
	900	M	4.42%, 6/15/2021 (a)		923,860
	25	M	5.875%, 6/15/2021 (a)		25,750
	1,000	M	Oracle Corp., 1.9%, 9/15/2021		965,935
	900	M	QUALCOMM, Inc., 2.6%, 1/30/2023		863,782
	50	M	Rackspace Hosting, Inc., 8.625%, 11/15/2024 (a)		49,500
	50	M	Solera, LLC, 10.5%, 3/1/2024 (a)		55,875
					3,740,832
			Manufacturing—.3%
	50	M	ATS Automation Tooling Systems, Inc., 6.5%, 6/15/2023 (a)		52,375

85

Portfolio of Investments (continued)

LIMITED DURATION BOND FUND

March 31, 2018

Principal Amount			Security	Value
			Manufacturing (continued)
$	250	M	CRH America, Inc., 8.125%, 7/15/2018	$	253,773
	50	M	Grinding Media, Inc., 7.375%, 12/15/2023 (a)		52,625
					358,773
			Media-Broadcasting—.1%
	50	M	Nexstar Broadcasting, Inc., 5.625%, 8/1/2024 (a)		49,110
	50	M	Sirius XM Radio, Inc., 6%, 7/15/2024 (a)		51,531
					100,641
			Media-Cable TV—.4%
			CCO Holdings, LLC:
	50	M	5.125%, 2/15/2023		50,450
	50	M	5.875%, 4/1/2024 (a)		51,000
	50	M	Cequel Communications Holdings I, LLC, 5.125%, 12/15/2021 (a)		50,187
	50	M	Clear Channel Worldwide Holdings, Inc. - Series “A”, 6.5%, 11/15/2022		51,000
	100	M	CSC Holdings, LLC, 6.75%, 11/15/2021		104,375
	50	M	DISH DBS Corp., 5%, 3/15/2023		45,125
	50	M	Gray Television, Inc., 5.875%, 7/15/2026 (a)		48,750
	75	M	Mediacom Broadband, LLC, 6.375%, 4/1/2023		77,391
	50	M	Midcontinent Communications & Finance Corp., 6.875%, 8/15/2023 (a)		52,813
	50	M	Radiate Holdco, LLC, 6.875%, 2/15/2023 (a)		48,625
					579,716
			Media-Diversified—.1%
	50	M	Outdoor Americas Capital, LLC, 5.875%, 3/15/2025		50,875
	50	M	Tribune Media Co., 5.875%, 7/15/2022		50,938
					101,813
			Metals/Mining—.3%
	25	M	AK Steel Corp., 7%, 3/15/2027		24,562
	60	M	Big River Steel, LLC, 7.25%, 9/1/2025 (a)		62,400
	50	M	Cleveland-Cliffs Inc., 4.875%, 1/15/2024 (a)		48,625
	50	M	Commercial Metals Co., 4.875%, 5/15/2023		49,991

86

Principal Amount			Security	Value
$	50	M	HudBay Minerals, Inc., 7.25%, 1/15/2023 (a)	$	52,125
	25	M	Joseph T. Ryerson & Son, Inc., 11%, 5/15/2022 (a)		27,625
	50	M	Novelis, Inc., 5.875%, 9/30/2026 (a)		49,125
	60	M	SunCoke Energy Partners, LP, 7.5%, 6/15/2025 (a)		62,100
					376,553
			Real Estate—5.8%
	1,570	M	American Tower Trust I, 3.07%, 3/15/2023 (a)		1,551,640
	1,000	M	Boston Properties, LP, 5.875%, 10/15/2019		1,038,868
	900	M	Digital Realty Trust, LP, 2.75%, 2/1/2023		865,061
	50	M	Equinix, Inc., 5.375%, 4/1/2023		51,312
	60	M	Geo Group, Inc., 5.875%, 10/15/2024		59,700
	50	M	Greystar Real Estate Partners, 5.75%, 12/1/2025 (a)		50,000
	100	M	Iron Mountain, Inc., 5.75%, 8/15/2024		97,375
	1,250	M	Realty Income Corp., 3.25%, 10/15/2022		1,241,450
	1,500	M	WEA Finance, LLC, 3.15%, 4/5/2022 (a)		1,484,769
	1,000	M	Welltower, Inc., 6.125%, 4/15/2020		1,059,394
					7,499,569
			Retail-General Merchandise—1.5%
	1,900	M	Amazon.com, Inc., 2.4%, 2/22/2023 (a)		1,836,920
	50	M	AmeriGas Partners, LP, 5.5%, 5/20/2025		48,500
	25	M	J.C. Penney Co., Inc., 8.625%, 3/15/2025		23,563
	50	M	KFC Holding Co., LLC, 5%, 6/1/2024 (a)		49,813
					1,958,796
			Services—.1%
	110	M	AECOM, 5.125%, 3/15/2027		106,227
	50	M	United Rentals, Inc., 4.625%, 10/15/2025		48,750
					154,977
			Telecommunications—2.1%
			AT&T, Inc.:
	500	M	5.875%, 10/1/2019		521,558
	500	M	2.45%, 6/30/2020		494,527

87

Portfolio of Investments (continued)

LIMITED DURATION BOND FUND

March 31, 2018

Principal Amount			Security	Value
			Telecommunications (continued)
$	50	M	CenturyLink, Inc., 5.8%, 3/15/2022	$	49,062
	50	M	Cincinnati Bell, Inc., 7%, 7/15/2024 (a)		45,000
	100	M	GCI, Inc., 6.875%, 4/15/2025		105,250
	50	M	Sprint Capital Corp., 6.875%, 11/15/2028		46,750
	1,400	M	Verizon Communications, Inc., 1.75%, 8/15/2021		1,337,244
	50	M	Zayo Group, LLC, 6.375%, 5/15/2025		51,938
					2,651,329
			Transportation—3.0%
	1,600	M	Aviation Capital Group, LLC, 7.125%, 10/15/2020 (a)		1,747,563
	50	M	BCD Acquisition, Inc., 9.625%, 9/15/2023 (a)		54,250
	1,000	M	Heathrow Funding, Ltd., 4.875%, 7/15/2021 (a)		1,056,585
	1,000	M	Southwest Airlines Co., 2.65%, 11/5/2020		990,107
	50	M	XPO Logistics, Inc., 6.5%, 6/15/2022 (a)		51,750
					3,900,255
			Utilities—5.6%
	500	M	Arizona Public Service Co., 8.75%, 3/1/2019		526,873
	50	M	Calpine Corp., 5.25%, 6/1/2026 (a)		48,437
	60	M	Cheniere Corpus Christi Holdings, 5.875%, 3/31/2025		63,000
	500	M	Consolidated Edison Co. of New York, 7.125%, 12/1/2018		513,815
	60	M	DCP Midstream, LP, 7.375%, 12/29/2049†		59,887
	500	M	Entergy Gulf States Louisiana, LLC, 6%, 5/1/2018		501,286
	1,000	M	Exelon Generation Co., LLC, 3.4%, 3/15/2022		1,001,741
	50	M	NRG Yield Operating, LLC, 5%, 9/15/2026		49,375
	1,000	M	Ohio Power Co., 6.05%, 5/1/2018		1,002,722
	500	M	Public Service Electric and Gas Co., 1.8%, 6/1/2019		493,852
	446	M	San Diego Gas & Electric Co., 1.914%, 2/1/2022		434,975
			Sempra Energy:
	500	M	9.8%, 2/15/2019		529,489
	1,200	M	2.5745%, 3/15/2021†		1,204,002
	700	M	Wisconsin Public Service Corp., 1.65%, 12/4/2018		695,796
					7,125,250

88

Principal Amount			Security	Value
			Waste Management—.1%
$	50	M	Covanta Holding Corp., 5.875%, 3/1/2024	$	49,125
	50	M	GFL Environmental, Inc., 5.375%, 3/1/2023 (a)		49,250
					98,375
			Wireless Communications—.2%
	50	M	Intelsat Jackson Holdings SA, 8%, 2/15/2024 (a)		52,688
	50	M	Level 3 Financing, Inc., 5.375%, 1/15/2024		48,844
	50	M	Sprint Communications, Inc., 6%, 11/15/2022		49,188
	50	M	T-Mobile USA, Inc., 6%, 3/1/2023		52,125
					202,845
	Total Value of Corporate Bonds (cost $96,282,289)				94,786,436
			RESIDENTIAL MORTGAGE-BACKED SECURITIES—7.6%
			Fannie Mae—4.1%
	754	M	3%, 8/1/2026 - 9/1/2027		757,697
	4,340	M	3.5%, 12/1/2025 - 12/1/2029		4,431,687
					5,189,384
			Freddie Mac—3.5%
	4,119	M	3%, 8/1/2027 - 12/1/2031		4,121,542
	334	M	3.5%, 12/1/2025		340,712
					4,462,254
	Total Value of Residential Mortgage-Backed Securities (cost $9,915,742)				9,651,638
			COVERED BONDS—4.8%
			Financial Services—2.1%
	2,750	M	Stadshypotek AB, 1.875%, 10/2/2019 (a)		2,720,305
			Financials—2.7%
	3,500	M	Royal Bank of Canada, 2.2%, 9/23/2019		3,480,519
	Total Value of Covered Bonds (cost $6,279,211)				6,200,824

89

Portfolio of Investments (continued)

LIMITED DURATION BOND FUND

March 31, 2018

	Principal Amount	Security		Value
		U.S. GOVERNMENT AGENCY OBLIGATIONS—3.1%
$	4,000M	Federal Home Loan Bank, 2.375%, 3/30/2020 (cost $3,996,151)		$	4,001,688
		SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS—5.5%
	7,000M	Federal Home Loan Bank, 1.715%, 4/16/2018 (cost $6,994,995)			6,995,506
	Total Value of Investments (cost $123,468,388)		94.9%		121,636,092
	Other Assets, Less Liabilities		5.1		6,574,874
	Net Assets		100.0%	$	128,210,966

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 4).

† Interest rates are determined and reset periodically. The interest rates above are the rates in effect at March 31, 2018.

Summary of Abbreviations:

LLLP Limited Liability Limited Partnership

Futures contracts outstanding at March 31, 2018:

Number of Contracts		Type	Expiration	Notional Amounts			Value at March 31, 2018			Unrealized Depreciation
	(50)	5 Year U.S. Treasury Note (Premium received $634)	June 2018	$	(5,706,641	)	$	(5,723,681	)	$	(17,040	)

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

90

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1			Level 2		Level 3		Total
Corporate Bonds	$	—		$	94,786,436	$	—	$	94,786,436
Residential Mortgage-Backed Securities		—			9,651,638		—		9,651,638
Covered Bonds		—			6,200,824		—		6,200,824
U.S. Government Obligations		—			4,001,688		—		4,001,688
Short-Term U.S. Government Agency Obligations		—			6,995,506		—		6,995,506
Total Investments in Securities*	$	—		$	121,636,092	$	—	$	121,636,092
Liabilities
Futures Contracts	$	(16,406	)	$	—	$	—	$	(16,406	)

* The Portfolio of Investments provides information on the industry categorization for corporate bonds and covered bonds.

There were no transfers into or from Level 1 and Level 2 by the Fund during the period ended March 31, 2018. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

91

Fund Expenses (unaudited)

STRATEGIC INCOME FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	0.57%
Actual		$1,000.00	$ 995.92	$ 2.84
Hypothetical**		$1,000.00	$ 1,022.09	$ 2.87
Advisor Class Shares	0.24%
Actual		$1,000.00	$ 1,000.13	$ 1.20
Hypothetical**		$1,000.00	$ 1,023.73	$ 1.21

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
**	Assumed rate of return of 5% before expenses

Portfolio Composition

BY FIRST INVESTORS UNDERLYING FUNDS

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

92

Portfolio of Investments

STRATEGIC INCOME FUND

March 31, 2018

Shares or Principal Amount			Security		Value
			MUTUAL FUNDS—95.3%
			First Investors Income Funds—90.3%
	2,548,964		Floating Rate Fund - Institutional Class Shares		$	24,673,974
	19,744,456		Fund For Income - Institutional Class Shares			48,571,361
	791,322		Government Fund - Institutional Class Shares			8,126,880
	847,043		International Opportunities Bond Fund - Institutional Class Shares			8,190,907
	2,558,469		Investment Grade Fund - Institutional Class Shares			23,998,440
	3,487,865		Limited Duration Bond Fund - Institutional Class Shares			32,367,384
						145,928,946
			First Investors Tax Exempt Funds—5.0%
	887,272		Tax Exempt Income Fund - Institutional Class Shares			8,171,774
	Total Value of Mutual Funds (cost $160,391,660)					154,100,720
			SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS—2.5%
$	4,000	M	Federal Home Loan Bank, 1.56%, 4/12/2018 (cost $3,998,091)			3,998,168
	Total Value of Investments (cost $164,389,751)			97.8%		158,098,888
	Other Assets, Less Liabilities			2.2		3,496,429
	Net Assets			100.0%	$	161,595,319

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

93

Portfolio of Investments (continued)

STRATEGIC INCOME FUND

March 31, 2018

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1		Level 2		Level 3		Total
Mutual Funds
First Investors Income Funds	$	145,928,946	$	—	$	—	$	145,928,946
First Investors Tax Exempt Funds		8,171,774		—		—		8,171,774
Short-Term U.S. Government Agency Obligations		—		3,998,168		—		3,998,168
Total Investments in Securities	$	154,100,720	$	3,998,168	$	—	$	158,098,888

There were no transfers into or from Level 1 and Level 2 by the Fund during the period ended March 31, 2018. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

94

Fund Expenses (unaudited)

COVERED CALL STRATEGY FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.30%
Actual		$1,000.00	$1,000.86	$6.48
Hypothetical**		$1,000.00	$1,018.45	$6.54
Advisor Class Shares	0.97%
Actual		$1,000.00	$1,002.26	$4.84
Hypothetical**		$1,000.00	$1,020.09	$4.89
Institutional Class Shares	0.84%
Actual		$1,000.00	$1,002.52	$4.19
Hypothetical**		$1,000.00	$1,020.74	$4.23

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
**	Assumed rate of return of 5% before expenses

Portfolio Composition

BY SECTOR

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

95

Portfolio of Investments

COVERED CALL STRATEGY FUND

March 31, 2018

Shares			Security	Value
			COMMON STOCKS—99.9%
			Consumer Discretionary—13.5%
	116,800		CBS Corp. - Class “B”	$	6,002,352
	739,800		Ford Motor Co.		8,196,984
	45,400		Home Depot, Inc.		8,092,096
	162,500		Time Warner, Inc.		15,369,250
	73,800		Whirlpool Corp.		11,299,518
					48,960,200
			Consumer Staples—4.9%
	47,800		Costco Wholesale Corp.		9,006,954
	98,000		CVS Health Corp.		6,096,580
	30,400		Wal-Mart Stores, Inc.		2,704,688
					17,808,222
			Energy—5.1%
	92,100		Chevron Corp.		10,503,084
	170,500		Halliburton Co.		8,003,270
					18,506,354
			Financials—19.5%
	117,200		American Express Co.		10,932,416
	559,800		Bank of America Corp.		16,788,402
	23,000		BlackRock, Inc.		12,459,560
	142,400		JPMorgan Chase & Co.		15,659,728
	265,600		Morgan Stanley		14,331,776
					70,171,882
			Health Care—13.0%
	45,800		Allergan, PLC		7,707,682
	81,900	*	Celgene Corp.		7,306,299
	187,200		Medtronic, PLC		15,017,184
	105,000		Merck & Co., Inc.		5,719,350
	313,000		Pfizer, Inc.		11,108,370
					46,858,885

96

Shares		Security		Value
		Industrials—14.7%
	152,500	Delta Air Lines, Inc.		$	8,358,525
	94,600	Honeywell International, Inc.			13,670,646
	26,200	Lockheed Martin Corp.			8,853,766
	59,100	Parker Hannifin Corp.			10,107,873
	90,400	Union Pacific Corp.			12,152,472
					53,143,282
		Information Technology—20.8%
	96,200	Apple, Inc.			16,140,436
	40,800	Broadcom, Ltd.			9,614,520
	296,300	Cisco Systems, Inc.			12,708,307
	237,100	Intel Corp.			12,348,168
	49,300	International Business Machines Corp.			7,564,099
	53,400	Mastercard, Inc.			9,353,544
	165,200	Oracle Corp.			7,557,900
					75,286,974
		Materials—5.8%
	203,100	DowDuPont, Inc.			12,939,501
	131,000	Nucor Corp.			8,002,790
					20,942,291
		Telecommunication Services—1.5%
	154,400	AT&T, Inc.			5,504,360
		Utilities—1.1%
	23,700	NextEra Energy, Inc.			3,870,921
	Total Value of Common Stocks (cost $333,452,376)		99.9%		361,053,371
	Other Assets, Less Liabilities		.1		430,797
	Net Assets		100.0%	$	361,484,168

* Non-income producing

97

Portfolio of Investments (continued)

COVERED CALL STRATEGY FUND

March 31, 2018

CALL OPTIONS WRITTEN—1.4%	Expiration Date	Exercise Price		Contracts			Value
Allergan, PLC	06/15/18	$	190.00		(458	)	$	(101,676	)
American Express Co.	07/20/18		105.00		(1,137	)		(133,029	)
American Express Co.	07/20/18		100.00		(35	)		(8,925	)
Apple, Inc.	07/20/18		175.00		(962	)		(692,640	)
AT&T, Inc.	06/15/18		42.00		(1,498	)		(7,490	)
AT&T, Inc.	07/20/18		38.00		(46	)		(2,806	)
Bank of America Corp.	04/20/18		33.00		(5,432	)		(38,024	)
Bank of America Corp.	05/18/18		32.00		(166	)		(7,802	)
BlackRock, Inc.	04/20/18		600.00		(223	)		(24,530	)
BlackRock, Inc.	10/19/18		590.00		(7	)		(15,225	)
Broadcom, Ltd.	04/20/18		262.50		(408	)		(22,848	)
CBS Corp	05/18/18		55.00		(1,168	)		(123,808	)
Celgene Corp.	06/15/18		105.00		(795	)		(90,630	)
Celgene Corp.	06/15/18		95.00		(24	)		(8,160	)
Chevron Corp.	05/18/18		120.00		(921	)		(128,940	)
Cisco Systems, Inc.	06/15/18		47.00		(2,963	)		(145,187	)
Costco Wholesale Corp.	06/15/18		195.00		(478	)		(197,414	)
CVS Health Corp.	08/17/18		77.50		(62	)		(2,852	)
CVS Health Corp.	08/17/18		75.00		(918	)		(58,752	)
Delta Air Lines, Inc.	04/13/18		58.00		(1,525	)		(67,100	)
DowDuPont, Inc.	06/15/18		77.50		(1,971	)		(31,536	)
DowDuPont, Inc.	09/21/18		70.00		(60	)		(11,220	)
Ford Motor Co.	09/21/18		11.87		(7,398	)		(273,726	)
Halliburton Co.	05/18/18		50.00		(623	)		(64,169	)
Halliburton Co.	06/15/18		55.00		(1,082	)		(43,280	)
Home Depot, Inc.	08/17/18		210.00		(441	)		(52,479	)
Home Depot, Inc.	09/21/18		195.00		(13	)		(5,915	)
Honeywell International, Inc.	06/15/18		165.00		(918	)		(27,540	)
Honeywell International, Inc.	06/15/18		155.00		(28	)		(3,892	)
Intel Corp.	04/20/18		55.00		(2,226	)		(100,170	)
Intel Corp.	06/15/18		52.50		(145	)		(39,585	)
International Business Machines Corp.	09/21/18		170.00		(493	)		(145,435	)
JPMorgan Chase & Co.	09/21/18		120.00		(1,424	)		(427,200	)
Lockheed Martin Corp.	06/15/18		390.00		(227	)		(17,025	)
Lockheed Martin Corp.	06/15/18		360.00		(35	)		(16,765	)
Mastercard, Inc.	05/18/18		185.00		(534	)		(162,870	)
Medtronic, PLC	04/20/18		85.00		(1,816	)		(32,688	)
Medtronic, PLC	06/15/18		82.50		(56	)		(12,824	)

98

CALL OPTIONS WRITTEN—1.4%	Expiration Date	Exercise Price		Contracts			Value
Merck & Co., Inc.	09/21/18	$	60.00		(1,050	)	$	(124,950	)
Morgan Stanley	04/20/18		60.00		(2,577	)		(30,924	)
Morgan Stanley	04/20/18		57.00		(79	)		(3,950	)
NextEra Energy, Inc.	05/18/18		165.00		(237	)		(94,800	)
Nucor Corp.	04/20/18		72.50		(1,271	)		(6,355	)
Nucor Corp.	05/18/18		67.50		(39	)		(2,535	)
Oracle Corp.	06/15/18		52.50		(1,652	)		(26,432	)
Parker Hannifin Corp.	05/18/18		210.00		(364	)		(6,188	)
Parker Hannifin Corp.	08/17/18		200.00		(227	)		(49,372	)
Pfizer, Inc.	05/18/18		37.00		(3,130	)		(125,200	)
Time Warner, Inc.	07/20/18		100.00		(1,625	)		(390,813	)
Union Pacific Corp.	08/17/18		140.00		(904	)		(549,632	)
Wal-Mart, Inc.	09/21/18		95.00		(304	)		(92,112	)
Whirlpool Corp.	05/18/18		170.00		(738	)		(112,176	)
Total Value of Call Options Written (premium received $8,103,872)							$	(4,961,596	)

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. Government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

99

Portfolio of Investments (continued)

COVERED CALL STRATEGY FUND

March 31, 2018

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1			Level 2		Level 3		Total
Assets
Common Stocks*	$	361,053,371		$	—	$	—	$	361,053,371
Liabilities
Call Options Written	$	(4,961,596	)	$	—	$	—	$	(4,961,596	)

* The Portfolio of Investments provides information on the industry categorization for common stocks.

There were no transfers into or from Level 1 and Level 2 by the Fund during the period ended March 31, 2018. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

100

Fund Expenses (unaudited)

EQUITY INCOME FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.20%
Actual		$1,000.00	$ 1,018.22	$ 6.04
Hypothetical**		$1,000.00	$ 1,018.95	$ 6.04
Class B Shares	2.03%
Actual		$1,000.00	$ 975.80	$ 10.00
Hypothetical**		$1,000.00	$ 1,014.81	$ 10.20
Advisor Class Shares	0.85%
Actual		$1,000.00	$ 1,020.36	$ 4.28
Hypothetical**		$1,000.00	$ 1,020.69	$ 4.28
Institutional Class Shares	0.80%
Actual		$1,000.00	$ 1,020.83	$ 4.03
Hypothetical**		$1,000.00	$ 1,020.94	$ 4.03

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
**	Assumed rate of return of 5% before expenses

Portfolio Composition

TOP TEN SECTORS

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

101

Portfolio of Investments

EQUITY INCOME FUND

March 31, 2018

Shares		Security	Value
		COMMON STOCKS—94.5%
		Consumer Discretionary—6.9%
	86,000	Acushnet Holdings Corp.	$	1,985,740
	55,000	American Eagle Outfitters, Inc.		1,096,150
	25,000	Aptiv, PLC		2,124,250
	35,568	CBS Corp. - Class “B”		1,827,839
	155,400	Comcast Corp. - Special Shares “A”		5,310,018
	109,200	Dana Holding Corp.		2,812,992
	218,500	Ford Motor Co.		2,420,980
	32,200	Home Depot, Inc.		5,739,328
	31,100	McDonald’s Corp.		4,863,418
	13,300	Oxford Industries, Inc.		991,648
	85,100	Tapestry, Inc.		4,477,111
	37,933	Time Warner, Inc.		3,587,703
	21,900	Walt Disney Co.		2,199,636
	39,100	Wyndham Worldwide Corp.		4,474,213
				43,911,026
		Consumer Staples—8.7%
	105,000	Altria Group, Inc.		6,543,600
	92,200	Coca-Cola Co.		4,004,246
	40,000	Dr. Pepper Snapple Group, Inc.		4,735,200
	6,000	J.M. Smucker Co.		744,060
	38,300	Kimberly-Clark Corp.		4,217,979
	109,117	Koninklijke Ahold Delhaize NV (ADR)		2,588,255
	18,066	Kraft Heinz Co.		1,125,331
	63,500	PepsiCo, Inc.		6,931,025
	84,500	Philip Morris International, Inc.		8,399,300
	65,000	Pinnacle Foods, Inc.		3,516,500
	71,400	Procter & Gamble Co.		5,660,592
	74,400	Wal-Mart Stores, Inc.		6,619,368
				55,085,456
		Energy—8.1%
	60,000	Anadarko Petroleum Corp.		3,624,600
	94,400	Chevron Corp.		10,765,376

102

Shares			Security	Value
	71,500		ConocoPhillips	$	4,239,235
	83,000		Devon Energy Corp.		2,638,570
	57,900		ExxonMobil Corp.		4,319,919
	65,400		Marathon Petroleum Corp.		4,781,394
	92,500		Occidental Petroleum Corp.		6,008,800
	72,200		PBF Energy, Inc. - Class “A”		2,447,580
	81,100		Royal Dutch Shell, PLC - Class “A” (ADR)		5,174,991
	55,000		Schlumberger, Ltd.		3,562,900
	106,300		Suncor Energy, Inc.		3,671,602
					51,234,967
			Financials—18.3%
	151,800	*	AllianceBernstein Holding, LP (MLP)		4,075,830
	33,000		American Express Co.		3,078,240
	21,300		Ameriprise Financial, Inc.		3,151,122
	65,000		Bank of New York Mellon Corp.		3,349,450
	103,400		Berkshire Hills Bancorp, Inc.		3,924,030
	61,010		Chubb, Ltd.		8,344,338
	72,000		Citizens Financial Group, Inc.		3,022,560
	60,000		Comerica, Inc.		5,755,800
	65,000		Discover Financial Services		4,675,450
	115,000		Financial Select Sector SPDR Fund (ETF)		3,170,550
	42,700		IBERIABANK Corp.		3,330,600
	87,100		Invesco, Ltd.		2,788,071
	110,000		iShares S&P U.S. Preferred Stock Index Fund (ETF)		4,131,600
	127,800		JPMorgan Chase & Co.		14,054,166
	100,000		MetLife, Inc.		4,589,000
	156,700		Old National Bancorp of Indiana		2,648,230
	47,900		PNC Financial Services Group, Inc.		7,244,396
	60,000		Prosperity Bancshares, Inc.		4,357,800
	59,000		SPDR S&P Regional Banking (ETF)		3,563,010
	154,300		Sterling Bancorp		3,479,465
	27,800		Travelers Cos., Inc.		3,860,308
	108,300		U.S. Bancorp		5,469,150

103

Portfolio of Investments (continued)

EQUITY INCOME FUND

March 31, 2018

Shares		Security	Value
		Financials (continued)
	105,000	Waddell & Reed Financial, Inc. - Class “A”	$	2,122,050
	227,500	Wells Fargo & Co.		11,923,275
				116,108,491
		Health Care—13.8%
	116,100	Abbott Laboratories		6,956,712
	73,100	AbbVie, Inc.		6,918,915
	22,500	Aetna, Inc.		3,802,500
	28,468	Baxter International, Inc.		1,851,559
	61,700	CVS Health Corp.		3,838,357
	53,000	Gilead Sciences, Inc.		3,995,670
	52,400	GlaxoSmithKline, PLC (ADR)		2,047,268
	96,900	Johnson & Johnson		12,417,735
	85,000	Koninklijke Philips NV (ADR)		3,256,350
	62,594	Medtronic, PLC		5,021,291
	180,211	Merck & Co., Inc.		9,816,093
	383,924	Pfizer, Inc.		13,625,463
	90,000	Phibro Animal Health Corp. - Class “A”		3,573,000
	18,500	Thermo Fisher Scientific, Inc.		3,819,510
	22,000	UnitedHealth Group, Inc.		4,708,000
	24,452	Zoetis, Inc.		2,041,987
				87,690,410
		Industrials—9.6%
	25,100	3M Co.		5,509,952
	25,400	A.O. Smith Corp.		1,615,186
	70,000	Eaton Corp., PLC		5,593,700
	16,800	General Dynamics Corp.		3,711,120
	54,900	Honeywell International, Inc.		7,933,599
	35,000	Industrial Select Sector SPDR Fund (ETF)		2,600,150
	51,100	Ingersoll-Rand, PLC		4,369,561
	31,450	ITT, Inc.		1,540,421
	128,461	Johnson Controls International, PLC		4,526,966
	19,000	Lockheed Martin Corp.		6,420,670
	135,100	Schneider National, Inc. - Class “B”		3,520,706

104

Shares		Security	Value
	120,800	Triton International, Ltd.	$	3,696,480
	43,700	United Parcel Service, Inc. - Class “B”		4,573,642
	42,500	United Technologies Corp.		5,347,350
				60,959,503
		Information Technology—13.7%
	45,900	Apple, Inc.		7,701,102
	45,000	Applied Materials, Inc.		2,502,450
	18,600	Automatic Data Processing, Inc.		2,110,728
	17,500	Broadcom, Ltd.		4,123,875
	342,100	Cisco Systems, Inc.		14,672,669
	50,000	Cypress Semiconductor Corp.		848,000
	75,000	HP Enterprise Co.		1,315,500
	140,000	HP, Inc.		3,068,800
	169,700	Intel Corp.		8,837,976
	12,900	Lam Research Corp.		2,620,764
	42,600	Microchip Technology, Inc.		3,891,936
	167,500	Microsoft Corp.		15,287,725
	95,300	QUALCOMM, Inc.		5,280,573
	72,700	Silicon Motion Technology Corp. (ADR)		3,498,324
	58,300	Symantec Corp.		1,507,055
	39,200	TE Connectivity, Ltd.		3,916,080
	32,000	Technology Select Sector SPDR Fund (ETF)		2,093,440
	35,000	Western Digital Corp.		3,229,450
				86,506,447
		Materials—5.3%
	115,423	DowDuPont, Inc.		7,353,599
	23,400	Eastman Chemical Co.		2,470,572
	46,900	FMC Corp.		3,591,133
	38,000	Greif, Inc.		1,985,500
	80,500	International Paper Co.		4,301,115
	31,700	LyondellBasell Industries NV - Class “A”		3,350,056
	28,000	Praxair, Inc.		4,040,400

105

Portfolio of Investments (continued)

EQUITY INCOME FUND

March 31, 2018

Shares		Security	Value
		Materials (continued)
	53,600	Sealed Air Corp.	$	2,293,544
	62,500	WestRock Co.		4,010,625
				33,396,544
		Real Estate—3.1%
	71,900	Americold Realty Trust (REIT)		1,371,852
	86,400	Brixmor Property Group, Inc. (REIT)		1,317,600
	88,000	Chesapeake Lodging Trust (REIT)		2,447,280
	68,700	Douglas Emmett, Inc. (REIT)		2,525,412
	23,000	Federal Realty Investment Trust (REIT)		2,670,530
	170,000	GGP, Inc. (REIT)		3,478,200
	105,000	Sunstone Hotel Investors, Inc. (REIT)		1,598,100
	75,000	Tanger Factory Outlet Centers, Inc. (REIT)		1,650,000
	151,800	Urstadt Biddle Properties, Inc. (REIT)		2,929,740
				19,988,714
		Telecommunication Services—3.0%
	240,730	AT&T, Inc.		8,582,024
	212,800	Verizon Communications, Inc.		10,176,096
				18,758,120
		Utilities—4.0%
	36,500	American Electric Power Co., Inc.		2,503,535
	100,000	CenterPoint Energy, Inc.		2,740,000
	50,000	Dominion Energy, Inc.		3,371,500
	35,000	Duke Energy Corp.		2,711,450
	128,000	Exelon Corp.		4,993,280
	17,100	NextEra Energy, Inc.		2,792,943
	65,000	PPL Corp.		1,838,850
	65,400	Vectren Corp.		4,180,368
				25,131,926
	Total Value of Common Stocks (cost $397,493,351)			598,771,604

106

Shares or Principal Amount			Security		Value
			PREFERRED STOCKS—1.1%
			Financials—.5%
	800		Citizens Financial Group, Inc., Series A, 5.5%, 2049		$	819,000
	102,800		JPMorgan Chase & Co., Series Y, 6.125%, 2020			2,690,276
						3,509,276
			Real Estate—.6%
	50,500		Digital Realty Trust, Inc. (REIT), Series G, 5.875%, 2049			1,261,490
			Urstadt Biddle Properties, Inc. (REIT):
	49,000		Series G, 6.75% 2049			1,252,930
	41,700		Series H, 6.25% 2022			1,034,160
						3,548,580
	Total Value of Preferred Stocks (cost $6,889,446)					7,057,856
			SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS—3.5%
			Federal Home Loan Bank:
$	6,000	M	1.54%, 4/11/2018			5,997,522
	2,000	M	1.715%, 4/16/2018			1,998,716
	10,000	M	1.68%, 4/19/2018			9,992,210
	2,500	M	1.68%, 4/25/2018			2,497,365
	1,500	M	1.7%, 4/26/2018			1,498,350
	Total Value of Short-Term Corporate Notes (cost $21,983,024)					21,984,163
			SHORT-TERM U.S. GOVERNMENT OBLIGATIONS—.5%
	3,000	M	U.S. Treasury Bills, 1.535%, 4/26/2018 (cost $2,996,799)			2,996,820
	Total Value of Investments (cost $429,362,620)			99.6%		630,810,443
	Other Assets, Less Liabilities			.4		2,798,031
	Net Assets			100.0%	$	633,608,474

* Non-income producing

107

Portfolio of Investments (continued)

EQUITY INCOME FUND

March 31, 2018

Summary of Abbreviations:

ADR	American Depositary Receipts
ETF	Exchange Traded Fund
MLP	Master Limited Partnership
REIT	Real Estate Investment Trust

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1		Level 2		Level 3		Total
Common Stocks	$	598,771,604	$	—	$	—	$	598,771,604
Preferred Stocks		7,057,856		—		—		7,057,856
Short-Term U.S. Government Agency Obligations		—		21,984,163		—		21,984,163
Short-Term U.S. Government Obligations		—		2,996,820		—		2,996,820
Total Investments in Securities*	$	605,829,460	$	24,980,983	$	—	$	630,810,443

* The Portfolio of Investments provides information on the industry categorization for common stocks and preferred stocks.

There were no transfers into or from Level 1 and Level 2 by the Fund during the period ended March 31, 2018. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

108

Fund Expenses (unaudited)

GLOBAL FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.44%
Actual		$1,000.00	$1,061.63	$ 7.40
Hypothetical**		$1,000.00	$1,017.75	$ 7.24
Class B Shares	2.23%
Actual		$1,000.00	$1,018.35	$ 11.22
Hypothetical**		$1,000.00	$1,013.81	$ 11.20
Advisor Class Shares	1.05%
Actual		$1,000.00	$1,062.37	$ 5.40
Hypothetical**		$1,000.00	$1,019.69	$ 5.29
Institutional Class Shares	1.01%
Actual		$1,000.00	$1,063.50	$ 5.20
Hypothetical**		$1,000.00	$1,019.89	$ 5.09

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
**	Assumed rate of return of 5% before expenses

Portfolio Composition

TOP TEN SECTORS

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

109

Portfolio of Investments

GLOBAL FUND

March 31, 2018

Shares			Security	Value
			COMMON STOCKS—98.1%
			United States—61.6%
	90,372		Abbott Laboratories	$	5,415,090
	52,398		Activision Blizzard, Inc.		3,534,769
	110,706		Air Lease Corp.		4,718,290
	6,378	*	Alphabet, Inc. - Class “C”		6,580,757
	5,554	*	Amazon.com, Inc.		8,038,526
	101,170		Apple, Inc.		16,974,303
	42,934		Aptiv, PLC		3,648,102
	130,215		Aramark Holdings Corp.		5,151,305
	54,925		Assured Guaranty, Ltd.		1,988,285
	145,606		Ball Corp.		5,782,014
	523,533		Bank of America Corp.		15,700,755
	14,298		BlackRock, Inc.		7,745,513
	12,457	*	bluebird bio, Inc.		2,127,033
	3,238	*	Booking Holdings, Inc.		6,736,303
	127,179		Bristol-Myers Squibb Co.		8,044,072
	40,264		Broadcom, Ltd.		9,488,212
	33,538		Capital One Financial Corp.		3,213,611
	12,530	*	CBRE Group, Inc. - Class “A”		591,667
	54,128		Citigroup, Inc.		3,653,640
	78,370		Cognizant Technology Solutions Corp. - Class “A”		6,308,785
	183,030		Coty, Inc. - Class “A”		3,349,449
	114,092		Danaher Corp.		11,170,748
	76,591		Delphi Technologies, PLC		3,649,561
	27,394	*	Diamondback Energy, Inc.		3,465,889
	98,121		Edison International		6,246,383
	18,738	*	Electronic Arts, Inc.		2,271,795
	95,924		EOG Resources, Inc.		10,097,920
	32,489		Expedia, Inc.		3,587,111
	52,054	*	Facebook, Inc. - Class “A”		8,317,709
	40,281		First Republic Bank		3,730,423
	26,992	*	FleetCor Technologies, Inc.		5,465,880
	504,939	*	Flex, Ltd.		8,245,654
	90,570		Fortune Brands Home & Security, Inc.		5,333,667

110

Shares			Security	Value
	12,913		General Dynamics Corp.	$	2,852,482
	98,359		General Motors Corp.		3,574,366
	45,987		Global Payments, Inc.		5,128,470
	27,131	*	Guidewire Software, Inc.		2,192,999
	114,672	*	Hologic, Inc.		4,284,146
	122,315	*	IHS Markit, Ltd.		5,900,476
	111,800		Intercontinental Exchange, Inc.		8,107,736
	175,442	*	JetBlue Airways Corp.		3,564,981
	180,985		Kinder Morgan, Inc.		2,725,634
	53,498		KLA-Tencor Corp.		5,831,817
	83,176		Knight-Swift Transportation Holdings, Inc.		3,826,928
	33,078		Marriott International, Inc.		4,497,946
	176,160		MGM Resorts International		6,169,123
	110,618	*	Micron Technology, Inc.		5,767,623
	68,499	*	Mylan NV		2,820,104
	22,572	*	Netflix, Inc.		6,666,640
	120,541		NIKE, Inc. - Class “B”		8,008,744
	52,815		Northern Trust Corp.		5,446,811
	17,432		NVIDIA Corp.		4,037,077
	32,215		Old Dominion Freight Line, Inc.		4,734,639
	58,781	*	Post Holdings, Inc.		4,453,249
	55,594		PPG Industries, Inc.		6,204,290
	31,378		Public Storage (REIT)		6,287,837
	59,331	*	salesforce.com, Inc.		6,900,195
	42,338	*	ServiceNow, Inc.		7,004,822
	31,751		Skyworks Solutions, Inc.		3,183,355
	46,680	*	Spirit Airlines, Inc.		1,763,570
	43,137	*	Splunk, Inc.		4,244,249
	68,835	*	Sprint Corp.		335,915
	45,011		SunTrust Banks, Inc.		3,062,548
	105,738		Tapestry, Inc.		5,562,876
	67,908		Teradyne, Inc.		3,104,075
	34,004		Thermo Fisher Scientific, Inc.		7,020,466
	32,887	*	TripAdvisor, Inc.		1,344,749

111

Portfolio of Investments (continued)

GLOBAL FUND

March 31, 2018

Shares			Security	Value
			United States (continued)
	9,050	*	Ultimate Software Group, Inc.	$	2,205,485
	135,725	*	Under Armour, Inc. - Class “A”		2,219,104
	46,853		UnitedHealth Group, Inc.		10,026,542
	54,907		Visa, Inc. - Class “A”		6,567,975
	27,054	*	Workday, Inc. - Class “A”		3,438,834
					381,442,099
			China—6.4%
	48,985	*	Alibaba Group Holding, Ltd. (ADR)		8,990,707
	298,000		China Merchants BankCo., Ltd. - Class “H”		1,236,959
	32,798	*	Ctrip.com International, Ltd. (ADR)		1,529,043
	7,481		NetEase, Inc. (ADR)		2,097,598
	80,993	*	New Oriental Education & Technology Group, Inc. (ADR)		7,099,036
	792,500		Ping An Insurance (Group) Co. of China, Ltd.		8,171,212
	210,600		Sunny Optical Technology		3,951,763
	121,410		Tencent Holdings, Ltd.		6,517,237
					39,593,555
			Japan—5.7%
	49,300		Komatsu, Ltd.		1,651,499
	59,130		Seven & I Holdings Co., Ltd.		2,532,676
	91,307		SoftBank Group Corp.		6,810,704
	156,671		Sony Corp.		7,708,262
	203,767		Sumitomo Mitsui Financial Group, Inc.		8,644,669
	179,400		Tokio Marine Holdings, Inc.		8,134,509
					35,482,319
			France—4.3%
	90,192	*	Airbus SE		10,440,432
	119,715	*	ArcelorMittal SA (ADR)		3,808,134
	69,033		Safran SA		7,326,457
	77,536		Valeo SA		5,129,020
					26,704,043

112

Shares			Security	Value		��
			Switzerland—4.2%
	30,420	*	ams AG	$	3,194,413
	131,964		Nestle SA		10,430,636
	693,650	*	UBS Group AG		12,221,369
					25,846,418
			United Kingdom—3.9%
	58,248	*	Atlassian Corp., PLC - Class “A”		3,140,732
	154,471		Anglo American PLC		3,598,342
	128,956		British American Tobacco, PLC		7,454,526
	1,947,041	*	Glencore, PLC		9,675,274
					23,868,874
			Italy—3.2%
	59,709		Banca Generali SpA		1,926,433
	32,500		Ferrari NV		3,906,885
	271,345	*	Fiat Chrysler Automobiles NV		5,534,438
	237,361		FinecoBank Banca Fineco SpA		2,856,946
	254,470	*	UniCredit SpA		5,318,718
					19,543,420
			Spain—2.0%
	1,158,910		Iberdrola SA		8,521,929
	131,223		Industria de Diseno Textil SA (a)		4,125,479
					12,647,408
			Taiwan—1.6%
	220,019		Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)		9,628,031
			South Korea—1.3%
	3,406		Samsung Electronics Co., Ltd.		7,958,038
			Brazil—1.2%
	46,000	*	PagSeguro Digital, Ltd.		1,762,720
	391,923	*	Petroleo Brasileiro SA		5,541,791
					7,304,511

113

Portfolio of Investments (continued)

GLOBAL FUND

March 31, 2018

Shares or Principal Amount			Security		Value
			India—1.1%
	62,630		HDFC Bank, Ltd.		$	1,824,473
	1,128,064		ICICI Bank, Ltd.			4,895,611
						6,720,084
			Netherlands—.8%
	100,824	*	AerCap Holdings NV			5,113,793
			Canada—.4%
	47,320		Magna International, Inc.			2,665,434
			Germany—.4%
	50,890		Vonovia SE			2,523,628
	Total Value of Common Stocks (cost $510,023,321)					607,041,655
			SHORT-TERM U.S. GOVERNMENT OBLIGATIONS—1.5%
			United States
	9,000	M	U.S. Treasury Bills, 1.535%, 4/26/2018 (cost $8,990,396)			8,990,460
			SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS—.3%
			United States
	2,000	M	Federal Home Loan Bank, 1.7%, 4/26/2018 (cost $1,997,637)			1,997,800
	Total Value of Investments (cost $521,011,354)			99.9%		618,029,915
	Other Assets, Less Liabilities			.1		802,748
	Net Assets			100.0%	$	618,832,663

* Non-income producing

(a) A portion or all of the security purchased on a when-issued or delayed delivery basis (see Note 1G).

Summary of Abbreviations:

ADR	American Depositary Receipts
REIT	Real Estate Investment Trust

114

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:    

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.    

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1		Level 2		Level 3		Total
Common Stocks
United States	$	381,442,099	$	—	$	—	$	381,442,099
China		19,716,384		19,877,171		—		39,593,555
Japan		—		35,482,319		—		35,482,319
France		3,808,134		22,895,909		—		26,704,043
Switzerland		—		25,846,418		—		25,846,418
United Kingdom		—		23,868,874		—		23,868,874
Italy		—		19,543,420		—		19,543,420
Spain		—		12,647,408		—		12,647,408
Taiwan		9,628,031		—		—		9,628,031
South Korea		—		7,958,038		—		7,958,038
Brazil		7,304,511		—		—		7,304,511
India		—		6,720,084		—		6,720,084
Netherlands		—		5,113,793		—		5,113,793
Canada		2,665,434		—		—		2,665,434
Germany		—		2,523,628		—		2,523,628
Short-Term U.S. Government Obligations		—		8,990,460		—		8,990,460
Short-Term U.S. Government Agency Obligations		—		1,997,800		—		1,997,800
Total Investments in Securities	$	424,564,593	$	193,465,322	$	—	$	618,029,915

115

Portfolio of Investments (continued)

GLOBAL FUND

March 31, 2018

Transfers between Level 1 and Level 2 securities as of March 31, 2018 resulted from securities priced previously with an official close price (Level 1 securities) or securities fair valued by the Valuation Committee (Level 2 securities). Transfers from Level 1 to Level 2 as of March 31, 2018 were $151,278,987. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

116

Fund Expenses (unaudited)

GROWTH & INCOME FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.14%
Actual		$1,000.00	$ 1,030.80	$5.77
Hypothetical**		$1,000.00	$ 1,019.25	$5.74
Class B Shares	1.91%
Actual		$1,000.00	$ 987.31	$9.46
Hypothetical**		$1,000.00	$ 1,015.41	$9.60
Advisor Class Shares	0.77%
Actual		$1,000.00	$ 1,032.43	$3.90
Hypothetical**		$1,000.00	$ 1,021.09	$3.88
Institutional Class Shares	0.74%
Actual		$1,000.00	$ 1,033.00	$3.75
Hypothetical**		$1,000.00	$ 1,021.24	$3.73

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
**	Assumed rate of return of 5% before expenses

Portfolio Composition

TOP TEN SECTORS

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

117

Portfolio of Investments

GROWTH & INCOME FUND

March 31, 2018

Shares		Security	Value
		COMMON STOCKS—97.9%
		Consumer Discretionary—10.8%
	100,000	Aptiv, PLC	$	8,497,000
	200,000	Aramark Holdings Corp.		7,912,000
	190,000	Big Lots, Inc.		8,270,700
	220,000	BorgWarner, Inc.		11,050,600
	400,000	CBS Corp. - Class “B”		20,556,000
	294,600	DSW, Inc. - Class “A”		6,616,716
	250,000	Ford Motor Co.		2,770,000
	180,000	Home Depot, Inc.		32,083,200
	255,000	L Brands, Inc.		9,743,550
	50,000	Lear Corp.		9,304,500
	192,900	Magna International, Inc.		10,869,915
	38,200	Meredith Corp.		2,055,160
	110,000	Penske Automotive Group, Inc.		4,876,300
	60,000	Ross Stores, Inc.		4,678,800
	250,000	Tapestry, Inc.		13,152,500
	195,000	Tupperware Brands Corp.		9,434,100
	160,000	Walt Disney Co.		16,070,400
	40,000	Whirlpool Corp.		6,124,400
	142,000	Wyndham Worldwide Corp.		16,249,060
				200,314,901
		Consumer Staples—8.7%
	480,000	Altria Group, Inc.		29,913,600
	293,500	B&G Foods, Inc.		6,955,950
	360,000	Coca-Cola Co.		15,634,800
	265,000	Conagra Brands, Inc.		9,773,200
	45,000	Dr. Pepper Snapple Group, Inc.		5,327,100
	631,904	Koninklijke Ahold Delhaize NV (ADR)		14,988,763
	165,000	PepsiCo, Inc.		18,009,750
	310,000	Philip Morris International, Inc.		30,814,000
	200,000	Procter & Gamble Co.		15,856,000
	160,000	Wal-Mart Stores, Inc.		14,235,200
				161,508,363

118

Shares		Security	Value
		Energy—7.6%
	174,000	Anadarko Petroleum Corp.	$	10,511,340
	270,000	ConocoPhillips		16,008,300
	370,000	Devon Energy Corp.		11,762,300
	200,000	ExxonMobil Corp.		14,922,000
	282,700	Halliburton Co.		13,269,938
	100,000	Hess Corp.		5,062,000
	300,000	Marathon Oil Corp.		4,839,000
	385,000	Marathon Petroleum Corp.		28,147,350
	120,000	Occidental Petroleum Corp.		7,795,200
	115,000	Phillips 66		11,030,800
	485,000	Suncor Energy, Inc.		16,751,900
				140,100,128
		Financials—18.2%
	300,000	American Express Co.		27,984,000
	170,000	American International Group, Inc.		9,251,400
	157,900	Ameriprise Financial, Inc.		23,359,726
	301,600	Bank of America Corp.		9,044,984
	130,000	Chubb, Ltd.		17,780,100
	67,000	Citigroup, Inc.		4,522,500
	515,000	Citizens Financial Group, Inc.		21,619,700
	114,000	Comerica, Inc.		10,936,020
	325,000	Discover Financial Services		23,377,250
	550,000	Financial Select Sector SPDR Fund (ETF)		15,163,500
	143,700	Hamilton Lane, Inc. - Class “A”		5,349,951
	166,800	IBERIABANK Corp.		13,010,400
	431,730	JPMorgan Chase & Co.		47,477,348
	275,000	MetLife, Inc.		12,619,750
	56,300	Morgan Stanley		3,037,948
	150,000	PNC Financial Services Group, Inc.		22,686,000
	250,000	SPDR S&P Regional Banking (ETF)		15,097,500
	480,000	Sterling Bancorp		10,824,000
	355,000	U.S. Bancorp		17,927,500

119

Portfolio of Investments (continued)

GROWTH & INCOME FUND

March 31, 2018

Shares			Security	Value
			Financials (continued)
	496,850		Wells Fargo & Co.	$	26,039,909
					337,109,486
			Health Care—17.0%
	425,000		Abbott Laboratories		25,466,000
	335,000		AbbVie, Inc.		31,707,750
	45,000		Aetna, Inc.		7,605,000
	42,000		Allergan, PLC		7,068,180
	168,669		Baxter International, Inc.		10,970,232
	94,400	*	Centene Corp.		10,088,528
	290,000		CVS Health Corp.		18,040,900
	170,000		Gilead Sciences, Inc.		12,816,300
	91,300		Hill-Rom Holdings, Inc.		7,943,100
	270,625		Johnson & Johnson		34,680,594
	250,000		Koninklijke Philips NV (ADR)		9,577,500
	150,000		Medtronic, PLC		12,033,000
	370,000		Merck & Co., Inc.		20,153,900
	869,301		Pfizer, Inc.		30,851,492
	298,100		Phibro Animal Health Corp. - Class “A”		11,834,570
	64,162		Shire, PLC (ADR)		9,585,161
	200,000		Thermo Fisher Scientific, Inc.		41,292,000
	143,800		Zoetis, Inc.		12,008,738
					313,722,945
			Industrials—12.2%
	125,000		3M Co.		27,440,000
	155,800		Apogee Enterprises, Inc.		6,753,930
	434,800	*	Gardner Denver Holdings, Inc.		13,339,664
	209,700		Honeywell International, Inc.		30,303,747
	145,000		Ingersoll-Rand, PLC		12,398,950
	505,530		Johnson Controls International, PLC		17,814,877
	27,500		Lockheed Martin Corp.		9,293,075
	40,900		ManpowerGroup, Inc.		4,707,590
	340,100		Masco Corp.		13,753,644
	275,000	*	MasTec, Inc.		12,938,750

120

Shares			Security	Value
	120,100		Owens Corning	$	9,656,040
	440,000		Schneider National, Inc. - Class “B”		11,466,400
	65,000		Snap-On, Inc.		9,590,100
	55,000		Stanley Black & Decker, Inc.		8,426,000
	592,000		Triton International, Ltd.		18,115,200
	150,000		United Technologies Corp.		18,873,000
					224,870,967
			Information Technology—15.7%
	214,400		Apple, Inc.		35,972,032
	300,000		Applied Materials, Inc.		16,683,000
	60,000		Broadcom, Ltd.		14,139,000
	900,000		Cisco Systems, Inc.		38,601,000
	105,887	*	Dell Technologies, Inc. - Class “V”		7,751,987
	149,709		DXC Technology Co.		15,050,246
	250,000	*	eBay, Inc.		10,060,000
	75,000	*	FleetCor Technologies, Inc.		15,187,500
	583,775		Intel Corp.		30,403,002
	524,000		Microsoft Corp.		47,825,480
	74,400	*	NXP Semiconductors NV		8,704,800
	350,000		Oracle Corp.		16,012,500
	335,000		QUALCOMM, Inc.		18,562,350
	85,400		TE Connectivity, Ltd.		8,531,460
	75,000		Western Digital Corp.		6,920,250
					290,404,607
			Materials—2.8%
	60,300		FMC Corp.		4,617,171
	285,000		International Paper Co.		15,227,550
	60,000		Praxair, Inc.		8,658,000
	135,000		RPM International, Inc.		6,435,450
	200,000		Sealed Air Corp.		8,558,000
	114,300		Trinseo SA		8,463,915
					51,960,086

121

Portfolio of Investments (continued)

GROWTH & INCOME FUND

March 31, 2018

Shares or Principal Amount			Security		Value
			Real Estate—1.8%
	725,000		Brixmor Property Group, Inc. (REIT)		$	11,056,250
	250,000		GGP, Inc. (REIT)			5,115,000
	480,000		Tanger Factory Outlet Centers, Inc. (REIT)			10,560,000
	373,500		Urstadt Biddle Properties, Inc. (REIT)			7,208,550
						33,939,800
			Telecommunication Services—2.1%
	530,000		AT&T, Inc.			18,894,500
	425,000		Verizon Communications, Inc.			20,323,500
						39,218,000
			Utilities—1.0%
	72,000		Dominion Energy, Inc.			4,854,960
	325,000		Exelon Corp.			12,678,250
						17,533,210
	Total Value of Common Stocks (cost $1,086,042,040)					1,810,682,493
			SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS—2.2%
			Federal Home Loan Bank:
$	5,000	M	1.56%, 4/12/2018			4,997,710
	10,000	M	1.715%, 4/16/2018			9,993,580
	16,000	M	1.68%, 4/17/2018			15,988,992
	6,500	M	1.68%, 4/25/2018			6,493,149
	3,500	M	1.7%, 4/26/2018			3,496,150
	Total Value of Short-Term U.S. Government Agency Obligations (cost $40,967,093)					40,969,581
	Total Value of Investments (cost $1,127,009,133)			100.1%		1,851,652,074
	Excess of Liabilties Over Other Assets			(.1)		(2,401,426	)
	Net Assets			100.0%	$	1,849,250,648

* Non-income producing

122

Summary of Abbreviations:

ADR	American Depositary Receipts
ETF	Exchange Traded Fund
REIT	Real Estate Investment Trust

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1		Level 2		Level 3		Total
Common Stocks	$	1,810,682,493	$	—	$	—	$	1,810,682,493
Short-Term U.S. Government Agency Obligations		—		40,969,581		—		40,969,581
Total Investments in Securities*	$	1,810,682,493	$	40,969,581	$	—	$	1,851,652,074

* The Portfolio of Investments provides information on the industry categorization for common stocks.

There were no transfers into or from Level 1 and Level 2 by the Fund during the period ended March 31, 2018.

Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

123

Fund Expenses (unaudited)

HEDGED U.S. EQUITY OPPORTUNITIES FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.75%
Actual		$1,000.00	$1,039.93	$8.90
Hypothetical**		$1,000.00	$1,016.20	$8.80
Advisor Class Shares	1.42%
Actual		$1,000.00	$1,040.70	$7.22
Hypothetical**		$1,000.00	$1,017.85	$7.14
Institutional Class Shares	1.31%
Actual		$1,000.00	$1,042.51	$6.67
Hypothetical**		$1,000.00	$1,018.40	$6.59

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
**	Assumed rate of return of 5% before expenses

Portfolio Composition

TOP TEN SECTORS

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

124

Portfolio of Investments

HEDGED U.S. EQUITY OPPORTUNITIES FUND

March 31, 2018

Shares			Security	Value
			COMMON STOCKS—96.0%
			Consumer Discretionary—12.1%
	420		Autoliv, Inc.	$	61,295
	116	*	Booking Holdings, Inc.		241,325
	7,261	*	CarMax, Inc.		449,746
	1,289		CBS Corp. - Class “B”		66,242
	6,061		Choice Hotels International, Inc.		485,789
	4,100		Comcast Corp. - Special Shares “A”		140,097
	5,812		D.R. Horton, Inc.		254,798
	1,621	*	Dave & Buster’s Entertainment, Inc.		67,661
	4,017	*	Dollar Tree, Inc.		381,213
	2,723		Expedia, Inc.		300,646
	5,500	*	Floor & Decor Holdings, Inc.		286,660
	3,519		General Motors Corp.		127,880
	2,740		Genuine Parts Co.		246,162
	376,339	*	Global Brands Group Holding, Ltd. (Hong Kong)		21,294
	7,374		Goodyear Tire & Rubber Co.		196,001
	5,025		Harley-Davidson, Inc.		215,472
	3,655		Hilton, Inc.		287,868
	4,395		Home Depot, Inc.		783,365
	8,137	*	JELD-WEN Holding, Inc.		249,155
	1,690		Las Vegas Sands Corp.		121,511
	1,020		Marriott International, Inc.		138,700
	3,268		McDonald’s Corp.		511,050
	5,660		Newell Brands, Inc.		144,217
	17,243		NIKE, Inc.		1,145,625
	3,097	*	Norwegian Cruise Line Holdings. Inc.		164,048
	224	*	NVR, Inc.		627,200
	5,080		Ross Stores, Inc.		396,138
	2,213		Royal Caribbean Cruises Ltd.		260,559
	4,108		SES SA (Luxembourg)		55,606
	13,493		TJX Cos., Inc.		1,100,489
	2,476		Tractor Supply Co.		156,038
	22,093	*	Under Armour, Inc.		361,221
	3,342	*	Wayfair, Inc.- Class “A”		225,685

125

Portfolio of Investments (continued)

HEDGED U.S. EQUITY OPPORTUNITIES FUND

March 31, 2018

Shares			Security	Value
			Consumer Discretionary (continued)
	274		Whirlpool Corp.	$	41,952
	978		Wyndham Worldwide Corp.		111,913
	5,512		Yum! Brands, Inc.		469,237
					10,893,858
			Consumer Staples—7.0%
	11,307		Altria Group, Inc.		704,652
	3,616		British American Tobacco, PLC (United Kingdom)		209,029
	785	*	Cimpress NV		121,439
	17,013		Coca-Cola Co.		738,875
	10,492		Colgate-Palmolive Co.		752,067
	3,091		Costco Wholesale Corp.		582,437
	6,553		Coty, Inc.		119,920
	4,449	*	Delivery Hero AG (Germany)		214,856
	24,763		Diageo, PLC (United Kingdom)		837,476
	2,239		Hershey Co.		221,571
	2,543		Hormel Foods Corp.		87,276
	3,769	*	Hostess Brands, Inc.		55,743
	582		J.M. Smucker Co.		72,174
	1,468		Kellogg Co.		95,435
	12,043		Kroger Co.		288,309
	3,381	*	Monster Beverage Corp.		193,427
	4,757		PepsiCo, Inc.		519,227
	805		Philip Morris International, Inc.		80,017
	3,432	*	Simply Good Foods Co.		47,121
	5,717	*	U.S. Foods Holding Corp.		187,346
	2,127		Walgreens Boots Alliance, Inc.		139,255
					6,267,652
			Energy—2.2%
	3,272		Anadarko Petroleum Corp.		197,662
	4,997		Canadian Natural Resources, Ltd. (Canada)		157,256
	1,494		Cimarex Energy Co.		139,689
	3,856	*	Diamondback Energy, Inc.		487,861
	3,421		Halliburton Co.		160,582

126

Shares			Security	Value
	2,427		Hess Corp.	$	122,855
	7,741	*	Laredo Petroleum, Inc.		67,424
	1,575	*	Lundin Petroleum AB (Sweden)		39,789
	5,984		Marathon Oil Corp.		96,522
	608		Marathon Petroleum Corp.		44,451
	11,523	*	Newfield Exploration Co.		281,392
	1,440		Noble Energy, Inc.		43,632
	448		Pioneer Natural Resources Co.		76,957
	5,578	*	Southwestern Energy Co.		24,153
					1,940,225
			Financials—18.0%
	11,089		Aflac, Inc.		485,255
	305		Alleghany Corp.		187,404
	2,041		Allstate Corp.		193,487
	13,580		American Express Co.		1,266,742
	3,796		American International Group, Inc.		206,578
	3,596		Arthur J. Gallagher & Co.		247,153
	10,425		Bank of America Corp.		312,646
	2,778		Bank of the Ozarks		134,094
	2,157	*	Berkshire Hathaway, Inc. - Class “B”		430,278
	756		BlackRock, Inc.		409,540
	754	*	Brighthouse Financial, Inc.		38,756
	7,391		Chubb, Ltd.		1,010,867
	5,431		Citigroup, Inc.		366,592
	11,792		CNO Financial Group, Inc.		255,533
	4,349		Comerica, Inc.		417,200
	1,081	*	Credit Acceptance Corp.		357,173
	1,806		FactSet Research Systems, Inc.		360,153
	579		Fairfax Financial Holdings, Ltd. (Canada)		293,498
	370		First Citizens BancShares, Inc.		152,899
	2,880		First Republic Bank		266,717
	5,800		FNF Group, Inc.		232,116
	4,197		IBERIABANK Corp.		327,366

127

Portfolio of Investments (continued)

HEDGED U.S. EQUITY OPPORTUNITIES FUND

March 31, 2018

Shares			Security	Value
			Financials (continued)
	13,200	*	J2 Acquisition, Ltd. (Virgin Islands)	$	125,004
	14,763		KeyCorp		288,617
	9,228		Lancashire Holdings, Ltd. (United Kingdom)		75,092
	3,630		Lincoln National Corp.		265,208
	5,116		M&T Bank Corp.		943,186
	784	*	Markel Corp.		917,476
	7,405		Marsh & McLennan Cos., Inc.		611,579
	8,170		MetLife, Inc.		374,921
	927		Moody’s Corp.		149,525
	5,994	*	Ocean Outdoors, Ltd. (Virgin Islands) (a)		57,393
	10,864		People’s United Financial, Inc.		202,722
	8,249		PNC Financial Services Group, Inc.		1,247,579
	1,288		Principal Financial Group, Inc.		78,452
	1,816		Reinsurance Group of America, Inc.		279,664
	3,488		RenaissanceRe Holdings		483,123
	11,416	*	SLM Corp.		127,973
	10,159		TD Ameritrade Holding Corp.		601,718
	1,074		Travelers Cos., Inc.		149,136
	4,581		Unum Group		218,101
	6,783		Wells Fargo & Co.		355,497
	271		White Mountain Insurance Group		222,903
	7,732		Zions Bancorp		407,708
					16,134,624
			Health Care—12.2%
	4,540	*	Acadia Healthcare Co., Inc.		177,877
	2,768		Agilent Technologies, Inc.		185,179
	1,168	*	Align Technology, Inc.		293,320
	3,706	*	Alkermes, PLC (Ireland)		214,800
	702		Allergan, PLC (United Kingdom)		118,140
	1,372	*	Alnylam Pharmaceuticals, Inc.		163,405
	1,695		AstraZeneca, PLC (ADR)		59,274
	8,533		Baxter International, Inc.		554,986
	2,705		Becton, Dickinson & Co.		586,173
	1,371	*	BeiGene, Ltd. (China) (ADR)		230,328

128

Shares			Security	Value
	365	*	Biogen, Inc.	$	99,944
	17,265		Bristol-Myers Squibb Co.		1,092,011
	7,937		Cardinal Health, Inc.		497,491
	831		CVS Health Corp.		51,696
	1,321		Dentsply Sirona, Inc.		66,459
	3,097	*	Edwards Lifesciences Corp.		432,093
	7,225	*	Envision Healthcare Corp.		277,657
	8,602	*	Exact Sciences Corp.		346,919
	1,130	*	Five Prime Therapeutics, Inc.		19,413
	4,037	*	Ionis Pharmaceuticals, Inc.		177,951
	5,161		Johnson & Johnson		661,382
	3,108		Koninklijke Philips NV (ADR)		119,067
	2,337	*	Laboratory Corp. of America Holdings		378,010
	4,929		McKesson Corp.		694,348
	11,173		Medtronic, PLC		896,298
	298	*	Mettler Toledo International, Inc.		171,359
	5,058	*	Mylan NV (Netherlands)		208,238
	786	*	Nektar Therapeutics		83,520
	20,329		Pfizer, Inc.		721,476
	1,224	*	Seattle Genetic, Inc.		64,064
	3,578		Stryker Corporation		575,772
	724		Teleflex, Inc.		184,606
	2,322		UnitedHealth Group, Inc.		496,908
					10,900,164
			Industrials—13.4%
	4,358		Allison Transmission Holdings, Inc.		170,223
	1,213		AMERCO		418,606
	16,267		Canadian National Railway Co. (Canada)		1,188,886
	2,982		Cintas Corp.		508,670
	3,815	*	Clean Harbors, Inc.		186,210
	6,551		CSX Corp.		364,956
	704		Cummins, Inc.		114,111
	2,364		Deere & Co.		367,176

129

Portfolio of Investments (continued)

HEDGED U.S. EQUITY OPPORTUNITIES FUND

March 31, 2018

Shares			Security	Value
			Industrials (continued)
	2,232		Delta Air Lines, Inc.	$	122,336
	860		Dover Corp.		84,469
	1,874		Dun & Bradstreet Corp.		219,258
	1,354		Eaton Corp., PLC (United Kingdom)		108,198
	1,918		Equifax, Inc.		225,960
	4,146		Fastenal Co.		226,330
	13,140	*	Genesee & Wyoming, Inc. - Class “A”		930,181
	3,567		Herman Miller, Inc.		113,966
	253		Huntington Ingalls Industries, Inc.		65,213
	4,118		IDEX Corp.		586,856
	4,653	*	Ichor Holdings, Ltd.		112,649
	3,676		Ingersoll-Rand, PLC		314,335
	1,048	*	JetBlue Airways Corp.		21,295
	4,717		Knight-Swift Transportation Holdings, Inc.		217,029
	1,485		L3 Technologies, Inc.		308,880
	3,127		Lennox International, Inc.		639,065
	1,245		Lockheed Martin Corp.		420,723
	14,805	*	Milacron Holdings Corp.		298,173
	5,102		PACCAR, Inc.		337,599
	6,639		Republic Services, Inc.		439,701
	2,039		Rockwell Automation, Inc.		355,194
	8,243		Sanwa Holdings Corp. (Japan)		106,290
	2,618		Southwest Airlines Co.		149,959
	8,423		Steelcase, Inc. - Class “A”		114,553
	3,942	*	TransUnion		223,827
	1,446		UniFirst Corp.		233,746
	6,100		Union Pacific Corp.		820,023
	3,879		United Parcel Service, Inc. - Class “B”		405,976
	374		Wabtec Corp.		30,444
	2,426		Waste Connections, Inc.		174,041
	3,931		Xylem, Inc.		302,373
					12,027,480
			Information Technology—17.7%
	6,703	*	Acacia Communications, Inc.		257,797

130

Shares			Security	Value
	4,519		Accenture, PLC	$	693,666
	1,792	*	Adobe Systems, Inc.		387,215
	917	*	Alibaba Group Holding, Ltd. (China) (ADR)		168,306
	566	*	Alphabet, Inc.		583,993
	1,229		Amdocs, Ltd.		81,999
	2,637	*	Arrow Electronics, Inc.		203,102
	3,882	*	Atlassian Corp., PLC (United Kingdom)		209,317
	6,701	*	Black Knight, Inc.		315,617
	5,737		Booz Allen Hamilton Holdings Corp.		222,137
	3,244		CDW Corp.		228,086
	1,586		Cisco Systems, Inc.		68,024
	1,996	*	CoStar Group, Inc.		723,909
	3,913	*	Facebook, Inc.		625,258
	2,864		FleetCor Technologies, Inc.		579,960
	100	*	ForeScout Technologies, Inc.		3,244
	367	*	Gartner Group, Inc.		43,167
	10,801		Genpact, Ltd.		345,524
	2,087		Global Payments, Inc.		232,742
	5,427	*	Guidewire Software, Inc.		438,664
	2,364		Harris Corp.		381,266
	1,738		International Business Machines Corp.		266,661
	17,947	*	Just Eat, PLC (United Kingdom)		175,744
	2,731	*	Keysight Technologies, Inc.		143,077
	1,535		KLA-Tencor Corp.		167,330
	4,612		Marvell Technology Group, Ltd.		96,852
	1,823		Maxim Integrated Products, Inc.		109,781
	3,178		Microchip Technology, Inc.		290,342
	5,839	*	Micron Technology, Inc.		304,445
	11,205		Microsoft Corp.		1,022,680
	2,300		Motorola Solutions, Inc.		242,190
	2,041		NVIDIA Corp.		472,675
	6,274	*	PayPal Holdings, Inc.		476,008
	4,142		QUALCOMM, Inc.		229,508
	3,733	*	salesforce.com, Inc.		434,148

131

Portfolio of Investments (continued)

HEDGED U.S. EQUITY OPPORTUNITIES FUND

March 31, 2018

Shares			Security	Value
			Information Technology (continued)
	3,903	*	ServiceNow, Inc.	$	645,751
	2,372	*	Shopify, Inc.		295,527
	6,360		Silicon Motion Technology Corp. (ADR) (Taiwan)		306,043
	8,137		SS&C Technologies Holdings, Inc.		436,469
	5,180		TE Connectivity, Ltd.		517,482
	5,320	*	Trade Desk, Inc. - Class “A”		263,978
	3,828	*	Verisign, Inc.		453,848
	5,032		Visa, Inc.		601,928
	1,903		Western Digital Corp.		175,590
	3,212	*	Workday, Inc. - Class “A”		408,277
	5,795	*	Yandex NV - Class “A” (Russia)		228,613
	4,218	*	Zillow Group, Inc. - Class “A”		227,772
	977	*	Zillow Group, Inc. - Class “C”		52,563
					15,838,275
			Materials—4.8%
	7,281		Ball Corp.		289,128
	426		Bunge, Ltd.		31,498
	970		Cabot Corp.		54,048
	4,468		Celanese Corp. - Class “A”		447,738
	3,264		CRH, PLC (Ireland)		110,335
	2,895		Eastman Chemical Co.		305,654
	3,958		Nucor Corp.		241,794
	1,883		Nutrien, Ltd. (Canada)		88,994
	5,099		Packaging Corp. of America		574,657
	986		PPG Industries, Inc.		110,038
	4,174		Praxair, Inc.		602,308
	5,561		Reliance Steel & Aluminum Co.		476,800
	845		Sherwin-Williams Co.		331,341
	6,475		Silgan Holdings, Inc.		180,329
	2,335		Tenaris SA		80,954
	1,923		Vulcan Materials Co.		219,549
	1,554		Westlake Chemical Corp.		172,727
					4,317,892

132

Shares		Security	Value
		Real Estate—4.8%
	5,394	American Tower Corp. (REIT)	$	783,964
	2,017	AvalonBay Communities, Inc. (REIT)		331,716
	6,669	Brixmor Property Group, Inc. (REIT)		101,702
	4,958	Columbia Property Trust, Inc. (REIT)		101,441
	3,240	Education Realty Trust, Inc. (REIT)		106,110
	429	Federal Realty Investment Trust (REIT)		49,811
	10,587	Host Hotels & Resorts, Inc. (REIT)		197,342
	7,002	Kimco Realty Corp. (REIT)		100,829
	548	Mid-America Apartment Communities, Inc. (REIT)		50,000
	2,261	PS Business Park, Inc. (REIT)		255,583
	6,494	Public Storage (REIT)		1,301,333
	537	Simon Property Group, Inc. (REIT)		82,886
	396	SL Green Realty Corp. (REIT)		38,345
	16,568	STORE Capital Corp. (REIT)		411,218
	875	Taubman Centers, Inc. (REIT)		49,796
	2,691	UDR, Inc. (REIT)		95,853
	4,661	Welltower, Inc. (REIT)		253,698
				4,311,627
		Telecommunication Services—1.2%
	21,698	AT&T, Inc.		773,534
	5,851	Verizon Communications, Inc.		279,795
				1,053,329
		Utilities—2.6%
	2,472	CMS Energy Corp.		111,957
	2,509	Dominion Energy, Inc.		169,182
	2,515	Edison International		160,105
	2,181	Eversourse Energy		128,505
	5,679	Exelon Corp.		221,538
	2,902	Iberdrola SA		85,580
	5,983	NRG Energy, Inc.		182,661
	3,914	OGE Energy Corp.		128,262
	1,002	Pinnacle West Capital Corp.		79,960

133

Portfolio of Investments (continued)

HEDGED U.S. EQUITY OPPORTUNITIES FUND

March 31, 2018

Shares		Security	Value
		Utilities (continued)
	1,009	Sempra Energy	$	112,221
	10,027	Southern Co.		447,806
	10,990	UGI Corp.		488,176
				2,315,953
	Total Value of Common Stocks (cost $76,956,831)			86,001,079

PUT OPTIONS PURCHASED—.9%
	Contracts	S&P 500 Index	Exercise Price	Notional Amount	Value
	29	Expiration 6/15/2018	2,525.00	7,658,523	142,100
	31	Expiration 9/21/2018	2,325.00	4,225,392	167,710
	26	Expiration 12/21/2018	2,400.00	6,866,262	217,100
	25	Expiration 3/15/2019	2,500.00	6,602,175	321,000
	Total Value of Put Options Purchased (premium paid $874,872)				847,910

		WARRANTS—.0%
		Financials
13,200	*	J2 Acquisition, Ltd. (Virgin Islands) (Expires 9/7/2027) (cost $132)			6,468
Total Value of Investments (cost $77,831,835)			96.9%		86,855,457
Other Assets, Less Liabilities			3.1		2,732,620
Net Assets			100.0%	$	89,588,077

* Non-income producing

(a) Securities valued at fair value (see Note 1A)

134

At March 31, 2018, Hedged U.S. Equity Opportunities Fund has open foreign currency contracts as described below.

The unrealized appreciation on the open contracts were as follows:

Hedged U.S. Equity Opportunities Fund

Counterparty	Settlement Date	Foreign Currency	Receive (Deliver)			Asset		Liability		Unrealized Appreciation
ANZ	6/20/18	JPY		(8,518,000	)	$	80,546	$	80,052	$	494
DMG	6/20/18	EUR		(89,000	)		110,389		109,510		879
Net Unrealized gain on open foreign exchange contracts										$	1,373

A summary of abbreviations for counterparties to foreign currency contracts are as follows:

ANZ	Australia and New Zealand Banking Group. Ltd.
DMG	Deutsche Bank AG

Summary of Abbreviations:

ADR	American Depositary Receipts
EUR	Euro
JPY	Japanese Yen
REIT	Real Estate Investment Trust

PUT OPTIONS WRITTEN—(.4)%

Contracts		S&P 500 Index	Exercise Price		Notional Amount			Value
	(29)	Expiration 6/15/2018		2,325.00		(7,658,523	)		(55,680	)
	(16)	Expiration 9/21/2018		2,075.00		(4,225,392	)		(33,040	)
	(26)	Expiration 12/21/2018		2,150.00		(6,866,262	)		(113,490	)
	(25)	Expiration 3/15/2019		2,300.00		(6,602,175	)	$	(162,424	)
	Total Value of Put Options Written (premium received $416,922)							$	(364,634	)

135

Portfolio of Investments (continued)

HEDGED U.S. EQUITY OPPORTUNITIES FUND

March 31, 2018

Futures contracts outstanding at March 31, 2018:

Number of Contracts		Type	Expiration	Notional Amounts			Value at March 31, 2018			Unrealized Appreciation
	(52)	E-mini Russell 2000 Index	June 2018	$	(4,101,370	)	$	(3,974,729	)	$	126,641
	(73)	E-mini S&P 500	June 2018		(10,179,485	)		(9,647,102	)		532,383
	(19)	E-mini S&P MidCap 400	June 2018		(3,714,500	)		(3,577,928	)		136,572
	(8)	FTSE 100 Index	June 2018		(570,320	)		(555,125	)		15,195
	(23)	MSCI EAFE Index	June 2018		(2,341,340	)		(2,300,734	)		40,606
	(13)	MSCI EM Index	June 2018		(796,230	)		(772,095	)		24,135
	(5)	S&P/TSE 60 Index	June 2018		(917,308	)		(908,542	)		8,766
	(Premium received $393)									$	884,298

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. Government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

136

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1			Level 2		Level 3		Total
Assets
Common Stocks	$	83,446,524		$	2,554,555	$	—	$	86,001,079
Put Options Purchased		847,910			—		—		847,910
Warrants		6,468			—		—		6,468
Total Investments in Securities*	$	84,300,902		$	2,554,555	$	—	$	86,855,457
Other Assets
Futures Contracts	$	884,691		$	—	$	—	$	884,691
Liabilities
Put Options Written	$	(364,634	)	$	—	$	—	$	(364,634	)
Other Financial Instruments**	$	—		$	1,373	$	—	$	1,373

* The Portfolio of Investments provides information on the industry categorization for common stocks and warrants.

** Other financial instruments are foreign exchange contracts and are considered derivative instruments, which are valued at the net unrealized appreciation on the instrument.

Transfers between Level 1 and Level 2 securities as of March 31, 2018 resulted from securities priced previously with an official close price (Level 1 securities) or securities fair valued by the Valuation Committee (Level 2 securities). Transfers from Level 1 to Level 2 as of March 31, 2018 were $2,339,699. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

137

Fund Expenses (unaudited)

INTERNATIONAL FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.57%
Actual		$1,000.00	$ 1,022.81	$ 7.92
Hypothetical**		$1,000.00	$ 1,017.10	$ 7.90
Class B Shares	2.38%
Actual		$1,000.00	$ 978.46	$ 11.74
Hypothetical**		$1,000.00	$ 1,013.06	$ 11.94
Advisor Class Shares	1.20%
Actual		$1,000.00	$ 1,024.61	$ 6.06
Hypothetical**		$1,000.00	$ 1,018.95	$ 6.04
Institutional Class Shares	1.10%
Actual		$1,000.00	$ 1,025.46	$ 5.55
Hypothetical**		$1,000.00	$ 1,019.45	$ 5.54

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
**	Assumed rate of return of 5% before expenses

Portfolio Composition

BY SECTOR

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

138

Portfolio of Investments

INTERNATIONAL FUND

March 31, 2018

Shares			Security	Value
			COMMON STOCKS—96.3%
			United States—16.0%
	48,284		Accenture, PLC - Class “A”	$	7,411,594
	45,385		Aptiv, PLC		3,856,363
	7,729	*	Booking Holdings, Inc.		16,079,334
	83,435		Mastercard, Inc. - Class “A”		14,614,475
	113,183		Philip Morris International, Inc.		11,250,390
	74,883		Visa, Inc. - Class “A”		8,957,504
					62,169,660
			United Kingdom—13.7%
	255,291		British American Tobacco, PLC		14,757,540
	81,729		DCC, PLC		7,530,260
	114,577		Diageo, PLC		3,874,952
	1,125,763		Domino’s Pizza Group, PLC		5,225,053
	131,683		Reckitt Benckiser Group, PLC		11,115,046
	358,836		RELX NV		7,438,282
	917,165		Rentokil Initial, PLC		3,495,313
					53,436,446
			Canada—8.1%
	256,532		Alimentation Couche-Tard, Inc. - Class “B”		11,483,060
	114,650		Canadian National Railway Co.		8,379,279
	17,510		Constellation Software, Inc.		11,880,597
					31,742,936
			France—8.0%
	27,652		Essilor International SA		3,730,276
	17,892		L’Oreal SA		4,041,067
	24,357		LVMH Moet Hennessy Louis Vuitton SE		7,506,182
	74,048		Safran SA		7,858,697
	51,910		Teleperformance		8,050,043
					31,186,265

139

Portfolio of Investments (continued)
INTERNATIONAL FUND
March 31, 2018

Shares			Security	Value
			India—7.7%
	551,607		HDFC Bank, Ltd.	$	16,068,851
	499,954		Housing Development Finance Corp., Ltd.		14,082,761
					30,151,612
			Spain—6.1%
	42,105		Aena SA		8,490,208
	283,286		Grifols SA - Class “A”		8,031,408
	227,487		Industria de Diseno Textil SA		7,151,892
					23,673,508
			Ireland—4.8%
	1,530,100		AIB Group, PLC		9,210,234
	91,021		Paddy Power Betfair, PLC		9,346,141
					18,556,375
			Japan—4.1%
	33,210		Daito Trust Construction Co., Ltd.		5,654,564
	6,777		Keyence Corp.		4,233,308
	42,400		Shimano, Inc.		6,118,586
					16,006,458
			Germany—4.1%
	74,537		HeidelbergCement AG		7,322,669
	81,348		SAP SE		8,540,073
					15,862,742
			China—4.0%
	85,761	*	Alibaba Group Holding, Ltd. (ADR)		15,740,574
			Switzerland—3.7%
	129,142		Nestle SA		10,207,581
	240,119	*	UBS Group AG		4,230,639
					14,438,220

140

Shares			Security	Value
			Netherlands—3.4%
	238,043		Unilever NV - CVA	$	13,436,456
			Taiwan—2.7%
	237,924		Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)		10,411,554
			Belgium—2.5%
	89,113		Anheuser-Busch InBev SA		9,797,697
			Hong Kong—2.1%
	593,130		Techtronic Industries Co., Ltd.		3,481,134
	88,350		Tencent Holdings, Ltd.		4,742,590
					8,223,724
			Brazil—1.6%
	844,501		Ambev SA (ADR)		6,139,522
			Israel—1.3%
	52,113	*	Check Point Software Technologies, Inc.		5,176,905
			South Africa—1.3%
	20,182		Naspers, Ltd.		4,938,798
			Australia—1.1%
	34,471		CSL, Ltd.		4,153,014
	Total Value of Common Stocks (cost $278,170,142)				375,242,466

141

Portfolio of Investments (continued)

INTERNATIONAL FUND

March 31, 2018

Principal Amount			Security		Value
			SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS—3.1%
			United States
			Federal Home Loan Bank:
$	2,000	M	1.53%, 4/5/2018		$	1,999,724
	7,000	M	1.54%, 4/11/2018			6,997,109
	1,000	M	1.715%, 4/16/2018			999,358
	2,000	M	1.7%, 4/26/2018			1,997,800
	Total Value of Short-Term U.S. Government Agency Obligations (cost $11,993,583)					11,993,991
	Total Value of Investments (cost $290,163,725)			99.4%		387,236,457
	Other Assets, Less Liabilities			.6		2,415,297
	Net Assets			100.0%	$	389,651,754

* Non-income producing

Summary of Abbreviations:

ADR American Depositary Receipts

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:    

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

142

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1		Level 2		Level 3		Total
Common Stocks
United States	$	62,169,660	$	—	$	—	$	62,169,660
United Kingdom		—		53,436,446		—		53,436,446
Canada		31,742,936		—		—		31,742,936
France		—		31,186,265		—		31,186,265
India		—		30,151,612		—		30,151,612
Spain		—		23,673,508		—		23,673,508
Ireland		—		18,556,375		—		18,556,375
Japan		—		16,006,458		—		16,006,458
Germany		—		15,862,742		—		15,862,742
China		15,740,574		—		—		15,740,574
Switzerland		—		14,438,220		—		14,438,220
Netherlands		—		13,436,456		—		13,436,456
Taiwan		10,411,554		—		—		10,411,554
Belgium		—		9,797,697		—		9,797,697
Hong Kong		—		8,223,724		—		8,223,724
Brazil		6,139,522		—		—		6,139,522
Israel		—		5,176,905		—		5,176,905
South Africa		—		4,938,798		—		4,938,798
Australia		—		4,153,014		—		4,153,014
Short-Term U.S. Government Agency Obligations		—		11,993,991		—		11,993,991
Total Investments in Securities	$	126,204,246	$	261,032,211	$	—	$	387,236,457

Transfers between Level 1 and Level 2 securities as of March 31, 2018 resulted from securities priced previously with an official close price (Level 1 securities) or securities fair valued by the Valuation Committee (Level 2 securities). Transfers from Level 1 to Level 2 as of March 31, 2018 were $226,880,406. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

143

Fund Expenses (unaudited)

LONG SHORT FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	2.93%
Actual		$1,000.00	$ 986.57	$ 14.51
Hypothetical***		$1,000.00	$ 1,010.32	$ 14.69
Advisor Class Shares	2.63%
Actual		$1,000.00	$ 987.57	$ 13.03
Hypothetical***		$1,000.00	$ 1,011.82	$ 13.19
Institutional Class Shares	2.44%
Actual		$1,000.00	$ 987.58	$ 12.09
Hypothetical***		$1,000.00	$ 1,012.76	$ 12.24

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived and/or assumed.
**	Assumed rate of return of 5% before expenses

Portfolio Composition

BY SECTOR

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

144

Portfolio of Investments

LONG SHORT FUND

March 31, 2018

Shares			Security	Value
			COMMON STOCKS—80.8%
			Consumer Discretionary—9.4%
	25,801		Comcast Corp. - Special Shares “A”	$	881,620
	17,839	*	Dollar Tree, Inc.		1,692,921
	24,440	*	Floor & Decor Holdings, Inc. (a)		1,273,813
	15,662		Lowe’s Cos., Inc. (a)		1,374,341
					5,222,695
			Energy—8.4%
	37,621		ConocoPhillips (a)		2,230,549
	18,176		EOG Resources, Inc. (a)		1,913,387
	11,900		Halliburton Co.		558,586
					4,702,522
			Financials—20.9%
	26,348		Citigroup, Inc. (a)		1,778,490
	51,783		Citizens Financial Group, Inc. (a)		2,173,850
	25,319		Comerica, Inc.		2,428,852
	24,729		Intercontinental Exchange, Inc. (a)		1,793,347
	70,805		Sterling Bancorp (a)		1,596,653
	27,498		SunTrust Banks, Inc. (a)		1,870,964
					11,642,156
			Health Care—10.6%
	6,769	*	Agios Pharmaceuticals, Inc. (a)		553,569
	2,986	*	Biogen, Inc. (a)		817,626
	3,599	*	BioMarin Pharmaceutical, Inc		291,771
	8,859		Danaher Corp.		867,385
	14,506		Gilead Sciences, Inc.		1,093,607
	3,120		Humana, Inc. (a)		838,750
	10,907		Medtronic, PLC (a)		874,959
	7,338	*	Molina Healthcare, Inc.		595,699
					5,933,366

145

Portfolio of Investments (continued)

LONG SHORT FUND

March 31, 2018

Shares			Security	Value
			Industrials—10.1%
	5,495		Caterpillar, Inc. (a)	$	809,853
	6,949		Deere & Co.		1,079,319
	7,258		Eaton Corp., PLC		579,987
	62,720	*	Gate Industrial Corp., PLC		1,098,227
	23,591		Kennametal, Inc.		947,414
	4,079		Norfolk Southern Corp.		553,847
	4,479		United Technologies Corp.		563,548
					5,632,195
			Information Technology—16.5%
	599	*	Alphabet, Inc. (a)		618,042
	6,858		Analog Devices, Inc.		624,969
	22,880		Cisco Systems, Inc. (a)		981,323
	13,070	*	CoreLogic, Inc.		591,156
	18,679	*	CyberArk Software, Ltd.		953,003
	18,531		DXC Technology Co. (a)		1,862,921
	11,043	*	eBay, Inc. (a)		444,370
	32,334		Intel Corp.		1,683,955
	13,785		Motorola Solutions, Inc. (a)		1,451,560
					9,211,299
			Materials—1.8%
	23,306		Steel Dynamics, Inc.		1,030,591
			Real Estate—1.1%
	9,263		Prologis, Inc. (REIT)		583,476
			Telecommunication Services—2.0%
	31,103		AT&T, Inc. (a)		1,108,822
	Total Value of Common Stocks (cost $41,083,756)				45,067,122
			SECURITIES SOLD SHORT—(45.0)%
			Consumer Discretionary—(9.2)%
	(29,956	)	Hanesbrands, Inc.		(551,790	)
	(3,318	)	Jack In The Box, Inc.		(283,125	)

146

Shares				Security	Value
	(30,243	)		Macy’s, Inc.	$	(899,427	)
	(12,917	)		NIKE, Inc.		(858,205	)
	(9,563	)		Omnicom Group, Inc.		(694,943	)
	(16,555	)	*	Sally Beauty Co., Inc.		(272,330	)
	(5,380	)		Target Corp		(373,533	)
	(2,757	)	*	Tesla, Inc.		(733,720	)
	(6,491	)		VF Corp.		(481,113	)
						(5,148,186	)
				Consumer Staples—(4.0)%
	(7,807	)		Craker Barrel Old Country Store, Inc.		(1,242,874	)
	(17,209	)		Interpublic Group of Cos., Inc		(396,323	)
	(3,853	)	*	Post Holdings, Inc.		(291,903	)
	(16,537	)		Wendy’s Co.		(290,224	)
						(2,221,324	)
				Financials—(4.2)%
	(24,064	)		Janus Henderson Group, PLC		(796,278	)
	(42,840	)		New York Community Bancorp, Inc.		(558,205	)
	(14,100	)		United Bankshares, Inc.		(497,025	)
	(25,676	)		Waddell & Reed Financial, Inc. - Class “A”		(518,912	)
						(2,370,420	)
				Health Care—(5.8)%
	(3,071	)		Amgen, Inc.		(523,544	)
	(5,183	)		Eli Lilly & Co.		(401,009	)
	(12,257	)		GlaxoSmithKline, PLC (ADR)		(478,881	)
	(9,305	)	*	Integra LifeSciences Holdings Corp.		(514,939	)
	(21,427	)	*	Intrexon Corp.		(328,476	)
	(14,110	)		Roche Holdings, Inc.		(403,899	)
	(14,112	)		Sanofi		(565,609	)
						(3,216,357	)

147

Portfolio of Investments (continued)

LONG SHORT FUND

March 31, 2018

Shares				Security	Value
				Industrials—(9.0)%
	(1,954	)		Acuity Brands, Inc.	$	(271,977	)
	(5,278	)		Canadian National Railway Co.		(385,980	)
	(2,791	)		Equifax, Inc.		(328,808	)
	(6,525	)		Flowserve Corp.		(282,728	)
	(16,134	)		Fluor Corp.		(923,187	)
	(8,802	)		Graco, Inc.		(402,427	)
	(10,910	)	*	HD Supply Holdings. Inc.		(413,925	)
	(4,157	)		MSC Industrial Direct Co., Inc.		(381,238	)
	(27,286	)		Ritchie Bros Auctioneers, Inc.		(858,690	)
	(4,200	)	*	Stericycle, Inc.		(245,826	)
	(1,855	)		W.W. Grainger, Inc.		(523,611	)
						(5,018,397	)
				Information Technology—(9.0)%
	(10,053	)		Amdocs, Ltd.		(670,736	)
	(2,590	)	*	athenahealth, Inc.		(370,448	)
	(10,555	)	*	Blackline, Inc.		(413,862	)
	(3,987	)		Cognizant Technology Solutions Corp.		(320,954	)
	(24,322	)		Convergys Corp.		(550,164	)
	(8,123	)	*	Cree Research, Inc.		(327,438	)
	(33,161	)	*	Infinera Corp.		(360,128	)
	(19,357	)		Infosys Technologies, Ltd.		(345,522	)
	(7,103	)	*	Square, Inc.		(349,468	)
	(31,763	)	*	TrueCar, Inc.		(300,478	)
	(26,765	)	*	Workiva, Inc.		(634,331	)
	(7,603	)	*	Zendesk, Inc.		(363,956	)
						(5,007,485	)
				Materials—(.7)%
	(17,474	)	*	Owens-Illinois, Inc.		(378,487	)

148

Shares	Security		Value
	Real Estate—(3.1)%
(5,348)	AvalonBay Communities, Inc. (REIT)		$	(879,532	)
(9,506)	Mid-America Apartment Communities, Inc. (REIT)			(867,327	)
				(1,746,859	)
Total Value of Securities Sold Short (proceeds $24,325,387)				(25,107,515	)
Total Value of Investments (cost and short proceeds $16,758,369)		35.8%		19,959,607
Other Assets, Less Liabilities		64.2		35,799,100
Net Assets		100.0%	$	55,758,707

* Non-income producing

(a) A portion or all of the security has been pledged to cover collateral requirements on securities sold short.

Summary of Abbreviations:

ADR	American Depositary Receipts
REIT	Real Estate Investment Trust

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. Government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.    

149

Portfolio of Investments (continued)

LONG SHORT FUND

March 31, 2018

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1			Level 2		Level 3		Total
Assets
Common Stocks*	$	45,067,122		$	—	$	—	$	45,067,122
Liabilities
Securities Sold Short*	$	(25,107,515	)	$	—	$	—	$	(25,107,515	)

* The Portfolio of Investments provides information on the industry categorization for common stocks and securities sold short.

There were no transfers into or from Level 1 and Level 2 by the Fund during the period ended March 31, 2018. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

150

Fund Expenses (unaudited)

OPPORTUNITY FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.20%
Actual		$1,000.00	$ 1,022.59	$ 6.05
Hypothetical**		$1,000.00	$ 1,018.95	$ 6.04
Class B Shares	1.95%
Actual		$1,000.00	$ 980.82	$ 9.63
Hypothetical**		$1,000.00	$ 1,015.21	$ 9.80
Advisor Class Shares	0.91%
Actual		$1,000.00	$ 1,024.35	$ 4.59
Hypothetical**		$1,000.00	$ 1,020.39	$ 4.58
Institutional Class Shares	0.77%
Actual		$1,000.00	$ 1,025.07	$ 3.89
Hypothetical**		$1,000.00	$ 1,021.09	$ 3.88

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
**	Assumed rate of return of 5% before expenses

Portfolio Composition

BY SECTOR

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

151

Portfolio of Investments

OPPORTUNITY FUND

March 31, 2018

Shares			Security	Value
			COMMON STOCKS—97.7%
			Consumer Discretionary—19.6%
	330,000		Acushnet Holdings Corp.	$	7,619,700
	70,000		Aptiv, PLC		5,947,900
	170,000		Aramark Holdings Corp.		6,725,200
	240,000		Big Lots, Inc.		10,447,200
	130,000		BorgWarner, Inc.		6,529,900
	212,500		Dana Holding Corp.		5,474,000
	353,200		DSW, Inc. - Class “A”		7,932,872
	185,000	*	Fox Factory Holding Corp.		6,456,500
	124,700	*	Helen of Troy, Ltd.		10,848,900
	40,000		Lear Corp.		7,443,600
	160,000	*	LKQ Corp.		6,072,000
	131,500		Magna International, Inc.		7,410,025
	162,900		Meredith Corp.		8,764,020
	320,000	*	Michaels Cos., Inc.		6,307,200
	95,000		Nordstrom, Inc.		4,598,950
	104,800		Oxford Industries, Inc.		7,813,888
	129,000		Penske Automotive Group, Inc.		5,718,570
	25,000		Ralph Lauren Corp.		2,795,000
	55,000		Ross Stores, Inc.		4,288,900
	200,000		Ruth’s Hospitality Group, Inc.		4,890,000
	340,000	*	ServiceMaster Holdings, Inc.		17,289,000
	200,000	*	Sleep Number Corp.		7,030,000
	247,500		Tapestry, Inc.		13,020,975
	300,000	*	Taylor Morrison Home Corp. - Class “A”		6,984,000
	500,000	*	TRI Pointe Group, Inc.		8,215,000
	115,400		Tupperware Brands Corp.		5,583,052
	475,000	*	William Lyon Homes - Class “A”		13,057,750
	102,000		Wyndham Worldwide Corp.		11,671,860
					216,935,962
			Consumer Staples—6.1%
	204,500		B&G Foods, Inc.		4,846,650
	195,000		Conagra Brands, Inc.		7,191,600

152

Shares			Security	Value
	40,000		Dr. Pepper Snapple Group, Inc.	$	4,735,200
	20,000		J.M. Smucker Co.		2,480,200
	513,725		Koninklijke Ahold Delhaize NV (ADR)		12,185,557
	21,700		McCormick & Co., Inc.		2,308,663
	289,000	*	Performance Food Group Co.		8,626,650
	175,000		Pinnacle Foods, Inc.		9,467,500
	104,711		Tootsie Roll Industries, Inc.		3,083,734
	385,000	*	U.S. Foods Holding Corp.		12,616,450
					67,542,204
			Energy—3.6%
	179,000		Devon Energy Corp.		5,690,410
	80,000		EOG Resources, Inc.		8,421,600
	90,000		EQT Corp.		4,275,900
	85,000		Hess Corp.		4,302,700
	146,500		National Oilwell Varco, Inc.		5,392,665
	282,800		PBF Energy, Inc. - Class “A”		9,586,920
	165,000	*	ProPetro Holding Corp.		2,621,850
					40,292,045
			Financials—13.7%
	75,600		Ameriprise Financial, Inc.		11,184,264
	220,000		Berkshire Hills Bancorp, Inc.		8,349,000
	500,000		Citizens Financial Group, Inc.		20,990,000
	65,000		Comerica, Inc.		6,235,450
	230,000		Discover Financial Services		16,543,900
	390,475		Financial Select Sector SPDR Fund (ETF)		10,765,396
	150,500		First Republic Bank		13,937,805
	250,500		FNF Group, Inc.		10,025,010
	91,250		Great Western Bancorp, Inc.		3,674,637
	139,200		IBERIABANK Corp.		10,857,600
	120,000		Nasdaq, Inc.		10,346,400
	200,000		SPDR S&P Regional Banking (ETF)		12,078,000
	500,000		Sterling Bancorp		11,275,000

153

Portfolio of Investments (continued)

OPPORTUNITY FUND

March 31, 2018

Shares			Security	Value
			Financials (continued)
	250,000		Waddell & Reed Financial, Inc. - Class “A”	$	5,052,500
					151,314,962
			Health Care—10.4%
	35,000		Allergan, PLC		5,890,150
	221,300	*	Centene Corp.		23,650,331
	100,000	*	Charles River Laboratories International, Inc.		10,674,000
	120,000		Gilead Sciences, Inc.		9,046,800
	151,200		Hill-Rom Holdings, Inc.		13,154,400
	350,500		Phibro Animal Health Corp. - Class “A”		13,914,850
	340,000	*	Prestige Brands, Inc.		11,464,800
	55,000		Quest Diagnostics, Inc.		5,516,500
	105,000		Thermo Fisher Scientific, Inc.		21,678,300
					114,990,131
			Industrials—15.8%
	260,000		A.O. Smith Corp.		16,533,400
	220,500		Apogee Enterprises, Inc.		9,558,675
	230,000	*	Atkore International Group Co.		4,565,500
	195,000		ESCO Technologies, Inc.		11,417,250
	260,000	*	Evoqua Water Technologies Corp.		5,535,400
	381,300	*	Gardner Denver Holdings, Inc.		11,698,284
	90,000		Ingersoll-Rand, PLC		7,695,900
	82,500		J. B. Hunt Transport Services, Inc.		9,664,875
	260,000		Korn/Ferry International		13,413,400
	40,900		ManpowerGroup, Inc.		4,707,590
	377,000		Masco Corp.		15,245,880
	250,000	*	MasTec, Inc.		11,762,500
	80,000		Owens Corning		6,432,000
	29,000		Roper Technologies, Inc.		8,140,010
	450,000		Schneider National, Inc. - Class “B”		11,727,000
	40,000		Snap-On, Inc.		5,901,600
	50,000		Stanley Black & Decker, Inc.		7,660,000
	430,000		Triton International, Ltd.		13,158,000
					174,817,264

154

Shares			Security	Value
			Information Technology—14.2%
	111,500		Belden, Inc.	$	7,686,810
	50,000		Broadcom, Ltd.		11,782,500
	200,000		Cypress Semiconductor Corp.		3,392,000
	160,000	*	Fiserv, Inc.		11,409,600
	70,000	*	FleetCor Technologies, Inc.		14,175,000
	70,000		Lam Research Corp.		14,221,200
	7,500		LogMeIn, Inc.		866,625
	128,200		Methode Electronics, Inc.		5,012,620
	100,000	*	Microsemi Corp.		6,472,000
	49,000		MKS Instruments, Inc.		5,666,850
	120,000		NetApp, Inc.		7,402,800
	130,000	*	NETGEAR, Inc.		7,436,000
	85,000		Silicon Motion Technology Corp. (ADR)		4,090,200
	110,300		SS&C Technologies Holdings, Inc.		5,916,492
	64,900		TE Connectivity, Ltd.		6,483,510
	71,200	*	Tech Data Corp.		6,061,256
	188,825		Technology Select Sector SPDR Fund (ETF)		12,352,932
	685,000		Travelport Worldwide, Ltd.		11,192,900
	70,000		Western Digital Corp.		6,458,900
	60,000	*	Zebra Technologies Corp. - Class “A”		8,351,400
					156,431,595
			Materials—7.9%
	148,100	*	Berry Global Group, Inc.		8,117,361
	36,400		Eastman Chemical Co.		3,843,112
	235,600	*	Ferro Corp.		5,470,632
	150,000		FMC Corp.		11,485,500
	115,000		Greif, Inc.		6,008,750
	85,000		KMG Chemicals, Inc.		5,095,750
	40,000		Praxair, Inc.		5,772,000
	160,000		Sealed Air Corp.		6,846,400
	477,168	*	Summit Materials, Inc. - Class “A”		14,448,647
	184,300		Trinseo SA		13,647,415

155

Portfolio of Investments (continued)

OPPORTUNITY FUND

March 31, 2018

Shares or Principal Amount			Security	Value
			Materials (continued)
	350,000	*	Venator Materials, PLC	$	6,331,500
					87,067,067
			Real Estate—4.2%
	153,800		Americold Realty Trust (REIT)		2,934,504
	540,000		Brixmor Property Group, Inc. (REIT)		8,235,000
	154,500		Douglas Emmett, Inc. (REIT)		5,679,420
	65,000		Federal Realty Investment Trust (REIT)		7,547,150
	250,000		GGP, Inc. (REIT)		5,115,000
	403,700		RLJ Lodging Trust (REIT)		7,847,928
	420,000		Tanger Factory Outlet Centers, Inc. (REIT)		9,240,000
					46,599,002
			Utilities—2.2%
	236,000		NiSource, Inc.		5,642,760
	144,800		Portland General Electric Co.		5,865,848
	200,000		WEC Energy Group, Inc.		12,540,000
					24,048,608
	Total Value of Common Stocks (cost $745,198,636)				1,080,038,840
			SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS—1.4%
			Federal Home Loan Bank:
$	4,000	M	1.54%, 4/11/2018		3,998,348
	3,500	M	1.56%, 4/12/2018		3,498,397
	1,000	M	1.715%, 4/16/2018		999,358
	7,000	M	1.68%, 4/19/2018		6,994,547
	Total Value of Short-Term U.S. Government Agency Obligations (cost $15,490,019)				15,490,650

156

Principal Amount	Security		Value
	SHORT-TERM U.S. GOVERNMENT OBLIGATIONS—.5%
$5,000M	U.S. Treasury Bills, 1.535%, 4/26/2018 (cost $4,994,665)		$	4,994,700
Total Value of Investments (cost $765,683,320)		99.6%		1,100,524,190
Other Assets, Less Liabilities		.4		4,622,214
Net Assets		100.0%	$	1,105,146,404

* Non-income producing

Summary of Abbreviations:

ADR	American Depositary Receipts
ETF	Exchange Traded Fund
REIT	Real Estate Investment Trust

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.    

157

Portfolio of Investments (continued)

OPPORTUNITY FUND

March 31, 2018

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1		Level 2		Level 3		Total
Common Stocks	$	1,080,038,840	$	—	$	—	$	1,080,038,840
Short-Term U.S. Government Agency Obligations		—		15,490,650		—		15,490,650
Short-Term U.S. Government Obligations		—		4,994,700		—		4,994,700
Total Investments in Securities*	$	1,080,038,840	$	20,485,350	$	—	$	1,100,524,190

* The Portfolio of Investments provides information on the industry categorization for common stocks.

There were no transfers into or from Level 1 and Level 2 by the Fund during the period ended March 31, 2018. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

158

Fund Expenses (unaudited)

REAL ESTATE FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.45%
Actual		$1,000.00	$ 963.70	$ 7.10
Hypothetical**		$1,000.00	$ 1,017.70	$ 7.29
Advisor Class Shares	1.12%
Actual		$1,000.00	$ 966.56	$ 5.49
Hypothetical**		$1,000.00	$ 1,019.35	$ 5.64
Institutional Class Shares	1.00%
Actual		$1,000.00	$ 966.87	$ 4.90
Hypothetical**		$1,000.00	$ 1,019.94	$ 5.04

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived and/or assumed.
**	Assumed rate of return of 5% before expenses

Portfolio Composition

TOP TEN SECTORS

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

159

Portfolio of Investments

REAL ESTATE FUND

March 31, 2018

Shares			Security	Value
			COMMON STOCKS—96.4%
			Apartments REITs—11.4%
	18,517		Apartment Investment & Management Co. - Class “A”	$	754,568
	29,167		AvalonBay Communities, Inc.		4,796,805
	15,557		Camden Property Trust		1,309,588
	62,581		Equity Residential Properties		3,856,241
	5,741		Essex Property Trust, Inc.		1,381,744
	18,696		Mid-America Apartment Communities, Inc.		1,705,823
	8,351		UDR, Inc.		297,463
					14,102,232
			Diversified REITs—3.6%
	7,564		CoreCivic, Inc.		147,649
	2,812		Digital Realty Trust, Inc.		296,329
	30,516		Duke Realty Corp.		808,064
	35,370		Forest City Realty Trust, Inc.		716,596
	37,558		Vornado Realty Trust		2,527,653
					4,496,291
			Health Care REITs—13.1%
	166,341		HCP, Inc.		3,864,101
	1,630		Healthcare Realty Trust, Inc.		45,167
	3,260		Healthcare Trust of America, Inc.		86,227
	3,528		LTC Properties, Inc.		134,064
	63,430		Omega Heathcare Investors, Inc.		1,715,147
	19,176	*	Quality Care Properties, Inc.		372,590
	147,583		Sabra Health Care REIT, Inc.		2,604,840
	43,379		Senior Housing Properties Trust		679,315
	50,604		Ventas, Inc.		2,506,416
	78,051		Welltower, Inc.		4,248,316
					16,256,183
			Hotels REITs—3.8%
	16,612		Hospitality Properties Trust		420,948
	72,104		Host Hotels & Resorts, Inc.		1,344,019

160

Shares			Security	Value
	17,324		LaSalle Hotel Properties	$	502,569
	120,800		RLJ Lodging Trust		2,348,352
	7,948		Sunstone Hotel Investors, Inc.		120,969
					4,736,857
			Infrastructure REITs—3.8%
	3,048		CorEnergy Infrastructure Trust, Inc.		114,422
	1,700		Crown Castle International Corp.		186,337
	272,031		Uniti Group, Inc.		4,420,504
					4,721,263
			Manufactured Homes REITs—3.7%
	37,159		Equity LifeStyle Properties, Inc.		3,261,445
	14,371		Sun Communities, Inc.		1,313,078
					4,574,523
			Office Property REITs—7.5%
	9,051		Alexandria Real Estate Equities, Inc.		1,130,379
	35,194		Boston Properties, Inc.		4,336,605
	5,700		Brandywine Realty Trust		90,516
	14,800		City Office REIT, Inc.		171,088
	17,825		Corporate Office Properties Trust		460,420
	5,120		Douglas Emmett, Inc.		188,211
	7,040		Empire State Realty Trust, Inc. - Class “A”		118,202
	20,515	*	Equity Commonwealth		629,195
	424		Franklin Street Properties Corp.		3,566
	16,729		JBG SMITH Properties		563,935
	10,665		Mack-Cali Realty Corp.		178,212
	14,867		Paramount Group, Inc.		211,706
	8,180		Piedmont Office Realty Trust, Inc. - Class “A”		143,886
	5,912		SL Green Realty Corp.		572,459
	29,565		Tier REIT, Inc.		546,361
					9,344,741

161

Portfolio of Investments (continued)

REAL ESTATE FUND

March 31, 2018

Shares			Security	Value
			Real Estate Services—2.1%
	12,200		FNF Group, Inc.	$	488,244
	58,531	*	Marcus & Millichap, Inc.		2,110,628
					2,598,872
			Regional Malls REITs—25.3%
	167,794		CBL & Associates Properties, Inc.		699,701
	355,120		GGP, Inc.		7,265,755
	82,992		Macerich Co.		4,649,212
	64,870		Pennsylvania REIT		625,995
	70,585		Simon Property Group, Inc.		10,894,795
	155,653		Tanger Factory Outlet Centers, Inc.		3,424,366
	60,555		Taubman Centers, Inc.		3,446,185
	56,320		Washington Prime Group, Inc.		375,654
					31,381,663
			Shopping Centers REITs—2.1%
	1,282		Acadia Realty Trust		31,537
	13,400		Brixmor Property Group, Inc.		204,350
	5,800		Cedar Realty Trust, Inc.		22,852
	68,076		DDR Corp.		498,997
	3,713		Federal Realty Investment Trust		431,116
	16,971		Kimco Realty Corp.		244,382
	7,090		Kite Realty Group Trust		107,981
	2,580		Ramco-Gershenson Properties Trust		31,889
	5,202		Regency Centers Corp.		306,814
	57,523		Retail Properties of America, Inc. - Class “A’		670,718
	995		Weingarten Realty Investors		27,940
					2,578,576
			Single Tenant REITs—2.2%
	93,662		Select Income REIT		1,824,536
	20,266		Spirit Realty Capital, Inc.		157,264
	26,522		STORE Capital Corp.		658,276

162

Shares		Security		Value
	8,000	VEREIT, Inc.		$	55,680
					2,695,756
		Storage REITs—13.4%
	118,146	CubeSmart			3,331,717
	31,361	Extra Space Storage, Inc.			2,739,697
	1,459	Iron Mountain, Inc.			47,943
	35,332	Life Storage, Inc.			2,950,929
	37,912	Public Storage			7,597,186
					16,667,472
		Specialized REITs—.7%
	44,400	OUTFRONT Media, Inc.			832,056
		Student Housing REITs—.3%
	10,392	American Campus Communities, Inc.			401,339
		Warehouse/Industrial REITs—3.4%
	400	Americold Realty Trust			7,632
	1,260	DCT Industrial Trust, Inc.			70,988
	684	EastGroup Properties, Inc.			56,539
	3,320	First Industrial Realty Trust, Inc.			97,044
	136,600	Industrial Logistics Properties Trust			2,778,444
	2,737	Liberty Property Trust			108,741
	17,840	Prologis, Inc.			1,123,742
					4,243,130
	Total Value of Common Stocks (cost $128,825,873)		96.4%		119,630,954
	Other Assets, Less Liabilities		3.6		4,405,211
	Net Assets		100.0%	$	124,036,165

* Non-income producing

Summary of Abbreviations:

REITs Real Estate Investment Trusts

163

Portfolio of Investments (continued)

REAL ESTATE FUND

March 31, 2018

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1		Level 2		Level 3		Total
Common Stocks*	$	119,630,954	$	—	$	—	$	119,630,954

* The Portfolio of Investments provides information on the industry categorization for common stocks.

There were no transfers into or from Level 1 and Level 2 by the Fund during the period ended March 31, 2018. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

164

Fund Expenses (unaudited)

SELECT GROWTH FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.22%
Actual		$1,000.00	$1,080.08	$ 6.33
Hypothetical**		$1,000.00	$1,018.85	$ 6.14
Class B Shares	1.98%
Actual		$1,000.00	$1,037.44	$ 10.06
Hypothetical**		$1,000.00	$1,015.06	$ 9.95
Advisor Class Shares	0.84%
Actual		$1,000.00	$1,082.39	$ 4.36
Hypothetical**		$1,000.00	$1,020.74	$ 4.23
Institutional Class Shares	0.81%
Actual		$1,000.00	$1,082.97	$ 4.21
Hypothetical**		$1,000.00	$1,020.89	$ 4.08

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
**	Assumed rate of return of 5% before expenses

Portfolio Composition

BY SECTOR

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

165

Portfolio of Investments

SELECT GROWTH FUND

March 31, 2018

Shares			Security	Value
			COMMON STOCKS—97.3%
			Consumer Discretionary—12.9%
	113,000		Home Depot, Inc.	$	20,141,120
	151,448		Las Vegas Sands Corp.		10,889,111
	77,800		Lear Corp.		14,477,802
	89,800		McDonald’s Corp.		14,042,924
	104,500		PVH Corp.		15,824,435
					75,375,392
			Consumer Staples—6.0%
	78,110		Procter & Gamble Co.		6,192,561
	264,000		Sysco Corp.		15,829,440
	147,600		Wal-Mart Stores, Inc.		13,131,972
					35,153,973
			Energy—.9%
	44,200		Chevron Corp.		5,040,568
			Financials—10.3%
	243,900		Bank of New York Mellon Corp.		12,568,167
	128,800		Discover Financial Services		9,264,584
	137,400		JPMorgan Chase & Co.		15,109,878
	187,800		SunTrust Banks, Inc.		12,777,912
	215,800		U.S. Bancorp		10,897,900
					60,618,441
			Health Care—15.9%
	229,300		Baxter International, Inc.		14,913,672
	43,400	*	Biogen, Inc.		11,883,788
	186,400	*	Centene Corp.		19,920,568
	124,652	*	Express Scripts Holding Co.		8,610,960
	119,598		Perrigo Co., PLC		9,967,298
	115,900	*	Varian Medical Systems, Inc.		14,215,135
	70,400	*	Waters Corp.		13,984,960
					93,496,381

166

Shares			Security	Value
			Industrials—11.8%
	52,600		Boeing Co.	$	17,246,488
	149,200		Eaton Corp., PLC		11,922,572
	191,600		Emerson Electric Co.		13,086,280
	55,000		Huntington Ingalls Industries, Inc.		14,176,800
	76,300		Parker Hannifin Corp.		13,049,589
					69,481,729
			Information Technology—37.3%
	148,000	*	Adobe Systems, Inc.		31,979,840
	13,600	*	Alphabet, Inc. - Class “A”		14,105,104
	77,500		Apple, Inc.		13,002,950
	102,100	*	Arista Networks, Inc.		26,066,130
	568,600	*	Cadence Design Systems, Inc.		20,907,422
	99,600	*	F5 Networks, Inc.		14,403,156
	120,000	*	Facebook, Inc.		19,174,800
	65,200	*	FleetCor Technologies, Inc.		13,203,000
	166,000		Microsoft Corp.		15,150,820
	312,800		NetApp, Inc.		19,296,632
	173,100	*	PayPal Holdings, Inc.		13,133,097
	187,800	*	Take-Two Interactive Software, Inc.		18,363,084
					218,786,035
			Materials—2.2%
	131,300		Celanese Corp. - Class “A”		13,157,573
	Total Value of Common Stocks (cost $418,012,705)				571,110,092

167

Portfolio of Investments (continued)

SELECT GROWTH FUND

March 31, 2018

Principal Amount			Security		Value
			SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS—1.6%
			Federal Home Loan Bank:
$	1,000	M	1.53%, 4/5/2018		$	999,862
	3,000	M	1.54%, 4/11/2018			2,998,761
	1,000	M	1.56%, 4/12/2018			999,542
	3,500	M	1.68%, 4/25/2018			3,496,311
	1,000	M	1.7%, 4/26/2018			998,900
	Total Value of Short-Term U.S. Government Agency Obligations (cost $9,492,964)					9,493,376
			SHORT-TERM U.S. GOVERNMENT OBLIGATIONS—.5%
	3,000	M	U.S. Treasury Bills, 1.535%, 4/26/2018 (cost $2,996,799)			2,996,820
	Total Value of Investments (cost $430,502,468)			99.4%		583,600,288
	Other Assets, Less Liabilities			.6		3,359,192
	Net Assets			100.0%	$	586,959,480

* Non-income producing

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:    

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

168

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1		Level 2		Level 3		Total
Common Stocks	$	571,110,092	$	—	$	—	$	571,110,092
Short-Term U.S. Government Agency Obligations		—		9,493,376		—		9,493,376
Short-Term U.S. Government Obligations		—		2,996,820		—		2,996,820
Total Investments in Securities*	$	571,110,092	$	12,490,196	$	—	$	583,600,288

* The Portfolio of Investments provides information on the industry categorization for common stocks.

There were no transfers into or from Level 1 and Level 2 by the Fund during the period ended March 31, 2018. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

169

Fund Expenses (unaudited)

SPECIAL SITUATIONS FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.29%
Actual		$1,000.00	$ 1,020.26	$ 6.50
Hypothetical**		$1,000.00	$ 1,018.50	$ 6.49
Class B Shares	2.06%
Actual		$1,000.00	$ 977.21	$ 10.15
Hypothetical**		$1,000.00	$ 1,014.66	$ 10.35
Advisor Class Shares	0.95%
Actual		$1,000.00	$ 1,021.81	$ 4.79
Hypothetical**		$1,000.00	$ 1,020.19	$ 4.78
Institutional Class Shares	0.86%
Actual		$1,000.00	$ 1,022.32	$ 4.34
Hypothetical**		$1,000.00	$ 1,020.64	$ 4.33

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
**	Assumed rate of return of 5% before expenses

Portfolio Composition

TOP TEN SECTORS

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

170

Portfolio of Investments

SPECIAL SITUATIONS FUND

March 31, 2018

Shares			Security	Value
			COMMON STOCKS—98.6%
			Consumer Discretionary—12.4%
	278,500	*	Century Communities, Inc.	$	8,341,075
	58,500		Cheesecake Factory, Inc.		2,820,870
	187,000		Dana Holding Corp.		4,817,120
	252,500		DSW, Inc. - Class “A”		5,671,150
	34,500	*	Genesco Inc.		1,400,700
	155,000		Haverty Furniture Cos., Inc.		3,123,250
	38,300	*	Helen of Troy, Ltd.		3,332,100
	83,000		Meredith Corp.		4,465,400
	171,000	*	Michaels Cos., Inc.		3,370,410
	112,000	*	Motorcar Parts of America, Inc.		2,400,160
	68,500		Oxford Industries, Inc.		5,107,360
	96,000		Penske Automotive Group, Inc.		4,255,680
	136,500		Ruth’s Hospitality Group, Inc.		3,337,425
	146,500	*	ServiceMaster Holdings, Inc.		7,449,525
	151,000	*	Taylor Morrison Home Corp. - Class “A”		3,515,280
	376,000	*	TRI Pointe Group, Inc.		6,177,680
	72,000		Tupperware Brands Corp.		3,483,360
	53,000	*	Visteon Corp.		5,842,720
	214,000	*	William Lyon Homes - Class “A”		5,882,860
	115,000		Wolverine World Wide, Inc.		3,323,500
					88,117,625
			Consumer Staples—4.0%
	126,000		B&G Foods, Inc.		2,986,200
	88,000		Energizer Holdings, Inc.		5,243,040
	31,500		Lancaster Colony Corp.		3,878,910
	115,000	*	Performance Food Group Co.		3,432,750
	110,500		Pinnacle Foods, Inc.		5,978,050
	114,000		Tootsie Roll Industries, Inc.		3,357,300
	116,500	*	U.S. Foods Holding Corp.		3,817,705
					28,693,955

171

Portfolio of Investments (continued)

SPECIAL SITUATIONS FUND

March 31, 2018

Shares			Security	Value
			Energy—5.1%
	51,500		Andeavor Logistics, LP	$	5,178,840
	186,500	*	Carrizo Oil & Gas, Inc.		2,984,000
	146,500		Delek U.S. Holdings, Inc.		5,962,550
	113,500	*	Dril-Quip, Inc.		5,084,800
	57,500		Energy Select Sector SPDR Fund (ETF)		3,876,075
	310,000	*	Jagged Peak Energy, Inc.		4,380,300
	204,500	*	Liberty Oilfield Services, Inc. - Class “A”		3,454,005
	166,500		PBF Energy, Inc. - Class “A”		5,644,350
					36,564,920
			Financials—23.7%
	247,000	*	AllianceBernstein Holding, LP (MLP)		6,631,950
	158,000		American Financial Group, Inc.		17,730,760
	120,500		Aspen Insurance Holdings, Ltd.		5,404,425
	135,900	*	Atlas Financial Holdings, Inc.		1,406,565
	235,500		Berkshire Hills Bancorp, Inc.		8,937,225
	319,000		Brown & Brown, Inc.		8,115,360
	215,500	*	Capstar Financial Holdings, Inc.		4,057,865
	169,500		Citizens Financial Group, Inc.		7,115,610
	107,500	*	FCB Financial Holdings, Inc. - Class “A”		5,493,250
	205,000		Financial Select Sector SPDR Fund (ETF)		5,651,850
	149,500		Great Western Bancorp, Inc.		6,020,365
	196,500	*	Green Bancorp, Inc.		4,372,125
	132,000		Guaranty Bancorp		3,742,200
	83,500		IBERIABANK Corp.		6,513,000
	119,500		iShares U.S. Regional Banks ETF (ETF)		6,019,215
	63,500		Kemper Corp.		3,619,500
	217,000		OceanFirst Financial Corp.		5,804,750
	344,500		Old National Bancorp of Indiana		5,822,050
	86,400		Popular, Inc.		3,595,968
	103,500		Prosperity Bancshares, Inc.		7,517,205
	92,000		QCR Holdings, Inc.		4,126,200
	129,500	*	Seacoast Banking Corp.		3,427,865
	181,000		Simmons First National Corp. - Class “A”		5,149,450

172

Shares			Security	Value
	88,000		SPDR S&P Regional Banking (ETF)	$	5,314,320
	517,000		Sterling Bancorp		11,658,350
	392,000		TCF Financial Corp.		8,941,520
	336,000		Waddell & Reed Financial, Inc. - Class “A”		6,790,560
					168,979,503
			Health Care—6.1%
	63,000	*	Cambrex Corp.		3,294,900
	80,500	*	Centene Corp.		8,603,035
	34,500	*	Charles River Laboratories International, Inc.		3,682,530
	57,800		Hill-Rom Holdings, Inc.		5,028,600
	37,500	*	ICON, PLC		4,430,250
	82,000		PerkinElmer, Inc.		6,209,040
	199,500		Phibro Animal Health Corp. - Class “A”		7,920,150
	115,500	*	Varex Imaging Corp.		4,132,590
					43,301,095
			Industrials—15.9%
	73,000		Apogee Enterprises, Inc.		3,164,550
	112,500	*	Atkore International Group Co.		2,233,125
	102,000		Comfort Systems USA, Inc.		4,207,500
	72,500		ESCO Technologies, Inc.		4,244,875
	205,500	*	Gardner Denver Holdings, Inc.		6,304,740
	101,000		Industrial Select Sector SPDR Fund (ETF)		7,503,290
	24,000		iShares U.S. Industrials (ETF)		3,480,720
	83,500		ITT, Inc.		4,089,830
	100,500		Korn/Ferry International		5,184,795
	117,500		Masco Corp.		4,751,700
	396,500	*	NCI Building Systems, Inc.		7,018,050
	109,000		Orbital ATK, Inc.		14,454,490
	46,000		Owens Corning		3,698,400
	88,500		Park-Ohio Holdings Corp.		3,438,225
	76,750	*	Patrick Industries, Inc.		4,746,987
	63,000		Regal Beloit Corp.		4,621,050

173

Portfolio of Investments (continued)

SPECIAL SITUATIONS FUND

March 31, 2018

Shares			Security	Value
			Industrials (continued)
	138,500		Schneider National, Inc. - Class “B”	$	3,609,310
	33,000		Snap-On, Inc.		4,868,820
	173,500	*	SPX Corp.		5,635,280
	63,000		Standex International Corp.		6,007,050
	79,000		Timken Co.		3,602,400
	198,000		Triton International, Ltd.		6,058,800
					112,923,987
			Information Technology—12.5%
	178,000	*	ARRIS International, PLC		4,729,460
	130,000	*	Autoweb, Inc.		387,400
	122,000	*	Axcelis Technologies, Inc.		3,001,200
	52,000		Belden, Inc.		3,584,880
	188,000	*	CommScope Holding Co., Inc.		7,514,360
	88,700	*	Diodes, Inc.		2,701,802
	132,000	*	Microsemi Corp.		8,543,040
	603,000	*	Mitel Networks Corp.		5,595,840
	86,000		MKS Instruments, Inc.		9,945,900
	114,500		NetApp, Inc.		7,063,505
	168,000	*	Perficient, Inc.		3,850,560
	49,000		Silicon Motion Technology Corp. (ADR)		2,357,880
	28,000	*	Tech Data Corp.		2,383,640
	431,000		Travelport Worldwide, Ltd.		7,042,540
	287,000	*	TTM Technologies, Inc.		4,388,230
	112,000	*	Web.com Group, Inc.		2,027,200
	92,000		Western Digital Corp.		8,488,840
	37,500	*	Zebra Technologies Corp. - Class “A”		5,219,625
					88,825,902
			Materials—9.8%
	123,500		AptarGroup, Inc.		11,094,005
	103,500	*	Berry Global Group, Inc.		5,672,835
	311,000	*	Constellium NV - Class “A”		3,374,350
	290,000	*	Ferro Corp.		6,733,800
	79,000		Greif, Inc.		4,127,750

174

Shares			Security	Value
	178,000		Louisiana-Pacific Corp.	$	5,121,060
	256,500	*	PQ Group Holdings, Inc.		3,583,305
	70,500		Sealed Air Corp.		3,016,695
	51,500		Sensient Technologies Corp.		3,634,870
	158,000		Trinseo SA		11,699,900
	340,500	*	Venator Materials, PLC		6,159,645
	89,000		WestRock Co.		5,711,130
					69,929,345
			Real Estate—5.4%
	199,000		Americold Realty Trust (REIT)		3,796,920
	344,500		Brixmor Property Group, Inc. (REIT)		5,253,625
	182,500		Douglas Emmett, Inc. (REIT)		6,708,700
	54,500		Federal Realty Investment Trust (REIT)		6,327,995
	300,000		RLJ Lodging Trust (REIT)		5,832,000
	218,500		Sunstone Hotel Investors, Inc. (REIT)		3,325,570
	199,500		Tanger Factory Outlet Centers, Inc. (REIT)		4,389,000
	147,500		Urstadt Biddle Properties, Inc. (REIT)		2,846,750
					38,480,560
			Telecommunication Services—.5%
	124,000		iShares U.S. Telecommunications ETF (ETF)		3,350,480
			Utilities—3.2%
	123,500		Black Hills Corp.		6,706,050
	67,500		Pinnacle West Capital Corp.		5,386,500
	125,000		Portland General Electric Co.		5,063,750
	87,500		WEC Energy Group, Inc.		5,486,250
					22,642,550
	Total Value of Common Stocks (cost $562,594,540)				701,809,922

175

Portfolio of Investments (continued)

SPECIAL SITUATIONS FUND

March 31, 2018

	Principal Amount	Security		Value
		SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS—1.1%
		Federal Home Loan Bank:
$	4,000M	1.53%, 4/5/2018		$	3,999,448
	2,000M	1.54%, 4/11/2018			1,999,174
	2,000M	1.7%, 4/26/2018			1,997,800
	Total Value of Short-Term U.S. Government Agency Obligations (cost $7,996,099)				7,996,422
	Total Value of Investments (cost $570,590,639)		99.7%		709,806,344
	Other Assets, Less Liabilities		.3		2,118,045
	Net Assets		100.0%	$	711,924,389

* Non-income producing

Summary of Abbreviations:

ADR	American Depositary Receipts
ETF	Exchange Traded Fund
REIT	Real Estate Investment Trust

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:    

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

176

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1		Level 2		Level 3		Total
Common Stocks	$	701,809,922	$	—	$	—	$	701,809,922
Short-Term U.S. Government Agency Obligations		—		7,996,422		—		7,996,422
Total Investments in Securities*	$	701,809,922	$	7,996,422	$	—	$	709,806,344

* The Portfolio of Investments provides information on the industry categorization for common stocks.

There were no transfers into or from Level 1 and Level 2 by the Fund during the period ended March 31, 2018. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

177

Fund Expenses (unaudited)

TOTAL RETURN FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 6 for a detailed explanation of the information presented in these examples.

Expense Example	Annualized Expense Ratio	Beginning Account Value (10/1/17)	Ending Account Value (3/31/18)	Expenses Paid During Period (10/1/17–3/31/18)*
Class A Shares	1.16%
Actual		$1,000.00	$ 1,012.79	$ 5.82
Hypothetical**		$1,000.00	$ 1,019.15	$ 5.84
Class B Shares	1.92%
Actual		$1,000.00	$ 969.32	$ 9.43
Hypothetical**		$1,000.00	$ 1,015.36	$ 9.65
Advisor Class Shares	0.82%
Actual		$1,000.00	$ 1,014.40	$ 4.12
Hypothetical**		$1,000.00	$ 1,020.84	$ 4.13
Institutional Class Shares	0.77%
Actual		$1,000.00	$ 1,014.85	$ 3.87
Hypothetical**		$1,000.00	$ 1,021.09	$ 3.88

*	Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
**	Assumed rate of return of 5% before expenses

Portfolio Composition

TOP TEN SECTORS

Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2018, and are based on the total market value of investments.

178

Portfolio of Investments

TOTAL RETURN FUND

March 31, 2018

Shares			Security	Value
			COMMON STOCKS—59.7%
			Consumer Discretionary—6.6%
	28,800		Aptiv, PLC	$	2,447,136
	57,800		Aramark Holdings Corp.		2,286,568
	55,800		Big Lots, Inc.		2,428,974
	63,530		BorgWarner, Inc.		3,191,112
	116,075		CBS Corp. - Class “B”		5,965,094
	87,300		DSW, Inc. - Class “A”		1,960,758
	72,250		Ford Motor Co.		800,530
	52,230		Home Depot, Inc.		9,309,475
	74,545		L Brands, Inc.		2,848,364
	14,500		Lear Corp.		2,698,305
	56,000		Magna International, Inc.		3,155,600
	11,000		Meredith Corp.		591,800
	14,400	*	Michaels Cos., Inc.		283,824
	32,000		Penske Automotive Group, Inc.		1,418,560
	17,800		Ross Stores, Inc.		1,388,044
	74,800		Tapestry, Inc.		3,935,228
	56,910		Tupperware Brands Corp.		2,753,306
	46,400		Walt Disney Co.		4,660,416
	12,075		Whirlpool Corp.		1,848,803
	40,990		Wyndham Worldwide Corp.		4,690,486
					58,662,383
			Consumer Staples—5.4%
	141,550		Altria Group, Inc.		8,821,396
	85,500		B&G Foods, Inc.		2,026,350
	104,690		Coca-Cola Co.		4,546,687
	78,500		Conagra Brands, Inc.		2,895,080
	13,100		Dr. Pepper Snapple Group, Inc.		1,550,778
	189,930		Koninklijke Ahold Delhaize NV (ADR)		4,505,140
	47,860		PepsiCo, Inc.		5,223,919
	94,610		Philip Morris International, Inc.		9,404,234
	59,900		Procter & Gamble Co.		4,748,872

179

Portfolio of Investments (continued)

TOTAL RETURN FUND

March 31, 2018

Shares		Security	Value
		Consumer Staples (continued)
	46,870	Wal-Mart Stores, Inc.	$	4,170,024
				47,892,480
		Energy—4.8%
	48,175	Anadarko Petroleum Corp.		2,910,252
	20,400	Chevron Corp.		2,326,416
	74,100	ConocoPhillips		4,393,389
	109,475	Devon Energy Corp.		3,480,210
	57,902	ExxonMobil Corp.		4,320,068
	66,200	Halliburton Co.		3,107,428
	26,500	Hess Corp.		1,341,430
	80,101	Marathon Oil Corp.		1,292,029
	111,650	Marathon Petroleum Corp.		8,162,731
	32,150	Occidental Petroleum Corp.		2,088,464
	33,350	Phillips 66		3,198,932
	24,200	Schlumberger, Ltd.		1,567,676
	145,160	Suncor Energy, Inc.		5,013,826
				43,202,851
		Financials—10.0%
	83,970	American Express Co.		7,832,722
	48,900	American International Group, Inc.		2,661,138
	45,525	Ameriprise Financial, Inc.		6,734,968
	37,600	Chubb, Ltd.		5,142,552
	157,300	Citizens Financial Group, Inc.		6,603,454
	28,100	Comerica, Inc.		2,695,633
	97,610	Discover Financial Services		7,021,087
	43,100	Hamilton Lane, Inc. - Class “A”		1,604,613
	49,500	IBERIABANK Corp.		3,861,000
	124,680	JPMorgan Chase & Co.		13,711,060
	80,600	MetLife, Inc.		3,698,734
	35,730	Morgan Stanley		1,927,991
	43,225	PNC Financial Services Group, Inc.		6,537,349
	72,300	SPDR S&P Regional Banking (ETF)		4,366,197
	142,200	Sterling Bancorp		3,206,610

180

Shares			Security	Value
	107,345		U.S. Bancorp	$	5,420,923
	128,220		Wells Fargo & Co.		6,720,010
					89,746,041
			Health Care—10.5%
	122,960		Abbott Laboratories		7,367,763
	97,400		AbbVie, Inc.		9,218,910
	13,300		Aetna, Inc.		2,247,700
	12,876		Allergan, PLC		2,166,902
	49,569		Baxter International, Inc.		3,223,968
	30,300	*	Centene Corp.		3,238,161
	87,960		CVS Health Corp.		5,471,992
	49,680		Gilead Sciences, Inc.		3,745,375
	27,300		Hill-Rom Holdings, Inc.		2,375,100
	78,300		Johnson & Johnson		10,034,145
	73,700		Koninklijke Philips NV (ADR)		2,823,447
	46,400		Medtronic, PLC		3,722,208
	106,745		Merck & Co., Inc.		5,814,400
	251,929		Pfizer, Inc.		8,940,960
	93,475		Phibro Animal Health Corp. - Class “A”		3,710,958
	19,515		Shire, PLC (ADR)		2,915,346
	57,895		Thermo Fisher Scientific, Inc.		11,953,002
	58,515		Zoetis, Inc.		4,886,588
					93,856,925
			Industrials—7.4%
	36,185		3M Co.		7,943,331
	45,000		Apogee Enterprises, Inc.		1,950,750
	126,700	*	Gardner Denver Holdings, Inc.		3,887,156
	60,800		Honeywell International, Inc.		8,786,208
	43,000		Ingersoll-Rand, PLC		3,676,930
	153,073		Johnson Controls International, PLC		5,394,293
	8,120		Lockheed Martin Corp.		2,743,992
	12,700		ManpowerGroup, Inc.		1,461,770

181

Portfolio of Investments (continued)

TOTAL RETURN FUND

March 31, 2018

Shares			Security	Value
			Industrials (continued)
	98,500		Masco Corp.	$	3,983,340
	80,500	*	MasTec, Inc.		3,787,525
	35,500		Owens Corning		2,854,200
	131,200		Schneider National, Inc. - Class “B”		3,419,072
	18,930		Snap-On, Inc.		2,792,932
	16,400		Stanley Black & Decker, Inc.		2,512,480
	175,100		Triton International, Ltd.		5,358,060
	43,330		United Technologies Corp.		5,451,781
					66,003,820
			Information Technology—10.6%
	89,605		Apple, Inc.		15,033,927
	86,700		Applied Materials, Inc.		4,821,387
	21,925		Broadcom, Ltd.		5,166,626
	260,900		Cisco Systems, Inc.		11,190,001
	30,868	*	Dell Technologies, Inc.- Class “V”		2,259,846
	44,775		DXC Technology Co.		4,501,231
	72,100	*	eBay, Inc.		2,901,304
	22,300	*	FleetCor Technologies, Inc.		4,515,750
	175,675		Intel Corp.		9,149,154
	3,000		Lam Research Corp.		609,480
	181,285		Microsoft Corp.		16,545,882
	21,440	*	NXP Semiconductors NV		2,508,480
	101,090		Oracle Corp.		4,624,867
	110,120		QUALCOMM, Inc.		6,101,749
	23,610		TE Connectivity, Ltd.		2,358,639
	22,072		Western Digital Corp.		2,036,583
					94,324,906
			Materials—1.5%
	82,700		International Paper Co.		4,418,661
	17,930		Praxair, Inc.		2,587,299
	39,010		RPM International, Inc.		1,859,607
	58,800		Sealed Air Corp.		2,516,052

182

Shares or Principal Amount			Security	Value
	32,585		Trinseo SA	$	2,412,919
					13,794,538
			Real Estate—1.1%
	216,025		Brixmor Property Group, Inc. (REIT)		3,294,381
	73,900		GGP, Inc. (REIT)		1,511,994
	148,100		Tanger Factory Outlet Centers, Inc. (REIT)		3,258,200
	112,430		Urstadt Biddle Properties, Inc. - Class “A” (REIT)		2,169,899
					10,234,474
			Telecommunication Services—1.3%
	153,000		AT&T, Inc.		5,454,450
	123,225		Verizon Communications, Inc.		5,892,620
					11,347,070
			Utilities—.5%
	13,100		Dominion Energy, Inc.		883,333
	93,700		Exelon Corp.		3,655,237
					4,538,570
	Total Value of Common Stocks (cost $330,400,425)				533,604,058
			CORPORATE BONDS—27.2%
			Aerospace/Defense—.5%
$	150	M	Bombardier, Inc., 8.75%, 12/1/2021 (a)		165,187
	2,500	M	Rockwell Collins, Inc., 3.2%, 3/15/2024		2,433,240
	1,500	M	Rolls-Royce, PLC, 3.625%, 10/14/2025 (a)		1,508,422
	150	M	TransDigm, Inc., 6.5%, 5/15/2025		151,875
					4,258,724
			Automotive—.9%
	150	M	American Axle & Manufacturing, Inc., 6.25%, 4/1/2025		150,187
	150	M	Asbury Automotive Group, Inc., 6%, 12/15/2024		153,375

183

Portfolio of Investments (continued)

TOTAL RETURN FUND

March 31, 2018

Principal Amount			Security	Value
			Automotive (continued)
$	150	M	Cooper Standard Automotive, Inc., 5.625%, 11/15/2026 (a)	$	150,000
	2,000	M	Daimler Finance NA, LLC, 3.35%, 2/22/2023 (a)		1,994,318
	290	M	Dana Holding Corp., 5.5%, 12/15/2024		295,800
	3,380	M	Lear Corp., 5.25%, 1/15/2025		3,572,927
	2,000	M	O’Reilly Automotive, Inc., 3.55%, 3/15/2026		1,959,362
					8,275,969
			Building Materials—.0%
	150	M	Building Materials Corp., 5.375%, 11/15/2024 (a)		152,625
	75	M	Griffon Corp., 5.25%, 3/1/2022		75,585
					228,210
			Chemicals—1.1%
	2,000	M	Agrium, Inc., 3.375%, 3/15/2025		1,944,560
	150	M	Blue Cube Spinco, Inc., 10%, 10/15/2025		177,000
	150	M	Chemours Co., 6.625%, 5/15/2023		158,062
	150	M	CVR Partners, LP, 9.25%, 6/15/2023 (a)		160,267
	2,000	M	Dow Chemical Co., 3.5%, 10/1/2024		1,984,696
	3,000	M	LYB International Finance Co. BV, 3.5%, 3/2/2027		2,884,563
	2,100	M	LyondellBasell Industries NV, 6%, 11/15/2021		2,268,664
	150	M	Rain CII Carbon, LLC, 7.25%, 4/1/2025 (a)		159,000
	140	M	Rayonier AM Products, Inc., 5.5%, 6/1/2024 (a)		137,900
					9,874,712
			Consumer Non-Durables—.0%
	150	M	Reynolds Group Holdings, Inc., 5.125%, 7/15/2023 (a)		151,643
			Energy—3.5%
	3,000	M	Andeavor Logistics, LP, 5.25%, 1/15/2025		3,053,700
	150	M	Blue Racer Midstream, LLC, 6.125%, 11/15/2022 (a)		153,375
	3,600	M	BP Capital Markets, PLC, 3.216%, 11/28/2023		3,571,391
	3,400	M	Canadian Oil Sands, Ltd., 7.75%, 5/15/2019 (a)		3,570,952
	1,500	M	Enbridge Energy Partners, LP, 4.2%, 9/15/2021		1,527,043
	300	M	Endeavor Energy Resources, LP, 5.75%, 1/30/2028 (a)		300,000
	2,000	M	Enterprise Products Operating, 7.55%, 4/15/2038		2,709,206

184

Principal Amount			Security	Value
$	140	M	Exterran Partners, LP, 6%, 10/1/2022	$	139,650
	150	M	Global Partners, LP, 6.25%, 7/15/2022		150,000
			Kinder Morgan Energy Partners, LP:
	1,000	M	3.5%, 3/1/2021		1,000,297
	1,100	M	3.45%, 2/15/2023		1,081,861
			Kinder Morgan, Inc.:
	2,000	M	5.625%, 11/15/2023 (a)		2,142,346
	2,250	M	4.3%, 3/1/2028		2,244,670
	3,500	M	Magellan Midstream Partners, LP, 5%, 3/1/2026		3,762,755
	75	M	Matador Resources Co., 6.875%, 4/15/2023		78,188
	150	M	Murphy Oil Corp., 6.875%, 8/15/2024		156,750
	150	M	NGPL Pipeco, LLC, 4.875%, 8/15/2027 (a)		148,313
	150	M	Oasis Petroleum, Inc., 6.875%, 1/15/2023		152,438
	1,000	M	ONEOK Partners, LP, 3.375%, 10/1/2022		985,299
	50	M	Parkland Fuel Corp., 6%, 4/1/2026 (a)		50,375
	150	M	PDC Energy, Inc., 6.125%, 9/15/2024		153,750
	150	M	SESI, LLC, 7.75%, 9/15/2024 (a)		155,625
	1,500	M	Spectra Energy, LLC, 6.2%, 4/15/2018		1,501,723
	1,600	M	Valero Energy Corp., 9.375%, 3/15/2019		1,696,798
	150	M	Whiting Petroleum Corp., 5.75%, 3/15/2021		151,872
	140	M	WPX Energy, Inc., 5.25%, 9/15/2024		138,600
					30,776,977
			Financial Services—3.7%
			American International Group, Inc.:
	1,000	M	3.75%, 7/10/2025		986,236
	1,000	M	4.7%, 7/10/2035		1,036,075
	1,000	M	Ameriprise Financial, Inc., 5.3%, 3/15/2020		1,042,515
	1,000	M	Assured Guaranty U.S. Holding, Inc., 5%, 7/1/2024		1,067,436
			Brookfield Finance, Inc.:
	3,700	M	4%, 4/1/2024		3,732,057
	1,300	M	4.25%, 6/2/2026		1,307,130
			ERAC USA Finance, LLC:
	1,000	M	4.5%, 8/16/2021 (a)		1,037,452
	1,000	M	3.3%, 10/15/2022 (a)		999,436

185

Portfolio of Investments (continued)

TOTAL RETURN FUND

March 31, 2018

Principal Amount			Security	Value
			Financial Services (continued)
$	2,000	M	Ford Motor Credit Co., LLC, 8.125%, 1/15/2020	$	2,166,118
	3,000	M	GE Capital International Funding Services, Ltd., 4.418%, 11/15/2035		2,937,972
	1,000	M	General Electric Capital Corp., 4.65%, 10/17/2021		1,044,606
	3,845	M	General Motors Financial Co., Inc., 5.25%, 3/1/2026		4,067,510
	4,100	M	Key Bank NA, 3.4%, 5/20/2026		3,969,271
	2,000	M	Liberty Mutual Group, Inc., 4.95%, 5/1/2022 (a)		2,113,766
	100	M	Navient Corp., 5.875%, 3/25/2021		102,625
	1,000	M	Protective Life Corp., 7.375%, 10/15/2019		1,064,292
	2,000	M	Prudential Financial, Inc., 7.375%, 6/15/2019		2,107,222
			Springleaf Finance Corp.:
	100	M	5.625%, 3/15/2023		98,375
	25	M	6.875%, 3/15/2025		25,156
	2,000	M	Travelers Cos., Inc., 4.05%, 3/7/2048		2,023,968
					32,929,218
			Financials—5.1%
	150	M	Ally Financial, Inc., 8%, 11/1/2031		183,750
			Bank of America Corp.:
	5,600	M	4.1%, 7/24/2023		5,785,041
	1,000	M	5.875%, 2/7/2042		1,250,118
			Barclays Bank, PLC:
	1,100	M	6.75%, 5/22/2019		1,148,082
	1,000	M	5.125%, 1/8/2020		1,033,411
	1,000	M	Capital One Financial Corp., 3.75%, 4/24/2024		994,025
			Citigroup, Inc.:
	1,000	M	8.5%, 5/22/2019		1,062,717
	1,000	M	4.5%, 1/14/2022		1,040,042
	1,100	M	3.4%, 5/1/2026		1,065,030
	1,500	M	Deutsche Bank AG, 3.7%, 5/30/2024		1,449,904
			Goldman Sachs Group, Inc.:
	2,700	M	5.375%, 3/15/2020		2,816,070
	1,000	M	3.625%, 1/22/2023		1,004,551
	2,000	M	4%, 3/3/2024		2,032,372
	1,000	M	6.125%, 2/15/2033		1,203,715

186

Principal Amount			Security	Value
$	2,000	M	HSBC Holdings, PLC, 2.65%, 1/5/2022	$	1,945,608
	150	M	Icahn Enterprises, LP, 6.75%, 2/1/2024		153,188
			JPMorgan Chase & Co.:
	1,000	M	4.5%, 1/24/2022		1,040,942
	1,000	M	3.54%, 5/1/2028 †		978,469
	150	M	Ladder Capital Finance Holdings, LLLP, 5.25%, 10/1/2025 (a)		142,500
			Morgan Stanley:
	5,550	M	5.5%, 7/28/2021		5,932,223
	2,000	M	4%, 7/23/2025		2,020,528
			U.S. Bancorp:
	1,000	M	3.6%, 9/11/2024		1,003,291
	1,000	M	3.1%, 4/27/2026		955,678
	1,500	M	UBS AG, 4.875%, 8/4/2020		1,561,231
	3,000	M	UBS Group Funding (Switzerland) AG, 4.253%, 3/23/2028 (a)		3,025,494
	5,100	M	Wells Fargo & Co., 3.45%, 2/13/2023		5,034,822
					45,862,802
			Food/Beverage/Tobacco—.7%
			Anheuser-Busch InBev Finance, Inc.:
	1,500	M	3.65%, 2/1/2026		1,493,592
	1,000	M	4.9%, 2/1/2046		1,082,690
	1,750	M	Bunge Ltd. Finance Corp., 8.5%, 6/15/2019		1,859,917
	1,000	M	Ingredion, Inc., 4.625%, 11/1/2020		1,035,977
	150	M	Pilgrim’s Pride Corp., 5.75%, 3/15/2025 (a)		146,042
	150	M	Post Holdings, Inc., 5.75%, 3/1/2027 (a)		149,625
					5,767,843
			Forest Products/Containers—.4%
	1,500	M	Packaging Corp. of America, 3.4%, 12/15/2027		1,437,855
	2,000	M	Rock-Tenn Co., 4.9%, 3/1/2022		2,106,562
	150	M	Sealed Air Corp., 6.875%, 7/15/2033 (a)		167,250
					3,711,667

187

Portfolio of Investments (continued)

TOTAL RETURN FUND

March 31, 2018

Principal Amount			Security	Value
			Gaming/Leisure—.1%
$	75	M	CRC Escrow Issuer, LLC, 5.25%, 10/15/2025 (a)	$	72,088
	150	M	Golden Nugget, Inc., 6.75%, 10/15/2024 (a)		151,124
	150	M	IRB Holding Corp., 6.75%, 2/15/2026 (a)		147,390
	25	M	National CineMedia, LLC, 6%, 4/15/2022		25,375
	150	M	Viking Cruises, Ltd., 6.25%, 5/15/2025 (a)		150,750
					546,727
			Health Care—.8%
	150	M	Centene Corp., 5.625%, 2/15/2021		154,500
	150	M	CHS/Community Health Systems, Inc., 6.25%, 3/31/2023		138,937
	2,000	M	CVS Health Corp., 3.875%, 7/20/2025		1,985,760
	150	M	DaVita, Inc., 5.125%, 7/15/2024		146,719
	2,100	M	Express Scripts Holding Co., 4.75%, 11/15/2021		2,190,951
	150	M	HCA, Inc., 6.25%, 2/15/2021		157,875
	150	M	HealthSouth Corp., 5.75%, 11/1/2024		153,188
	25	M	inVentiv Group Holdings, Inc., 7.5%, 10/1/2024 (a)		26,688
	1,500	M	Laboratory Corp. of America Holdings, 3.75%, 8/23/2022		1,526,896
	150	M	LifePoint Health, Inc., 5.875%, 12/1/2023		152,018
	150	M	Mallinckrodt Finance SB, 5.75%, 8/1/2022 (a)		129,000
	150	M	Molina Healthcare, Inc., 4.875%, 6/15/2025 (a)		140,625
	150	M	Universal Hospital Services, Inc., 7.625%, 8/15/2020		151,875
			Valeant Pharmaceuticals International, Inc.:
	150	M	6.5%, 3/15/2022 (a)		155,438
	150	M	7.25%, 7/15/2022 (a)		150,563
					7,361,033
			Home Building—.0%
	50	M	William Lyon Homes, Inc., 6%, 9/1/2023 (a)		50,063
			Information Technology—1.1%
	150	M	Alliance Data Systems Corp., 5.375%, 8/1/2022 (a)		150,750
	1,500	M	Apple, Inc., 2.5%, 2/9/2025		1,423,485
	150	M	CommScope Technologies, LLC, 6%, 6/15/2025 (a)		156,825

188

Principal Amount			Security	Value
$	4,000	M	Corning, Inc., 7.25%, 8/15/2036	$	4,888,068
			Diamond 1 Finance Corp.:
	3,000	M	4.42%, 6/15/2021 (a)		3,079,533
	50	M	5.875%, 6/15/2021 (a)		51,500
	150	M	Rackspace Hosting, Inc., 8.625%, 11/15/2024 (a)		148,500
	150	M	Solera, LLC, 10.5%, 3/1/2024 (a)		167,625
					10,066,286
			Manufacturing—.3%
	150	M	ATS Automation Tooling Systems, Inc., 6.5%, 6/15/2023 (a)		157,125
	1,000	M	CRH America, Inc., 8.125%, 7/15/2018		1,015,092
	150	M	Grinding Media, Inc., 7.375%, 12/15/2023 (a)		157,875
	1,100	M	Johnson Controls International, PLC, 5%, 3/30/2020		1,145,306
					2,475,398
			Media-Broadcasting—.6%
			Comcast Corp.:
	1,600	M	5.15%, 3/1/2020		1,665,286
	3,000	M	4.25%, 1/15/2033		3,113,427
	150	M	Nexstar Broadcasting, Inc., 5.625%, 8/1/2024 (a)		147,330
	150	M	Sirius XM Radio, Inc., 6%, 7/15/2024 (a)		154,593
					5,080,636
			Media-Cable TV—.2%
	200	M	Altice Financing SA, 6.625%, 2/15/2023 (a)		198,500
	200	M	Altice U.S. Finance I Corp., 5.375%, 7/15/2023 (a)		203,100
			CCO Holdings, LLC:
	150	M	5.125%, 2/15/2023		151,350
	150	M	5.875%, 4/1/2024 (a)		153,000
	150	M	Clear Channel Worldwide Holdings, Inc. - Series “A”, 6.5%, 11/15/2022		153,000
	225	M	CSC Holdings, LLC, 10.125%, 1/15/2023 (a)		250,313
	150	M	DISH DBS Corp., 5%, 3/15/2023		135,375

189

Portfolio of Investments (continued)

TOTAL RETURN FUND

March 31, 2018

Principal Amount			Security	Value
			Media-Cable TV (continued)
$	150	M	Gray Television, Inc., 5.875%, 7/15/2026 (a)	$	146,250
	150	M	Midcontinent Communications & Finance Corp., 6.875%, 8/15/2023 (a)		158,438
	150	M	Radiate Holdco, LLC, 6.875%, 2/15/2023 (a)		145,875
					1,695,201
			Media-Diversified—.1%
	150	M	Outdoor Americas Capital, LLC, 5.875%, 3/15/2025		152,625
	1,000	M	Time Warner, Inc., 3.6%, 7/15/2025		974,623
	150	M	Tribune Media Co., 5.875%, 7/15/2022		152,813
					1,280,061
			Metals/Mining—.6%
	75	M	AK Steel Corp., 7%, 3/15/2027		73,687
	150	M	Big River Steel, LLC, 7.25%, 9/1/2025 (a)		156,000
	140	M	Cleveland-Cliffs Inc., 4.875%, 1/15/2024 (a)		136,150
	150	M	Commercial Metals Co., 4.875%, 5/15/2023		149,975
	3,000	M	Glencore Funding, LLC, 4.625%, 4/29/2024 (a)		3,077,400
	150	M	HudBay Minerals, Inc., 7.25%, 1/15/2023 (a)		156,375
	50	M	Joseph T. Ryerson & Son, Inc., 11%, 5/15/2022 (a)		55,250
	1,500	M	Newmont Mining Corp., 5.125%, 10/1/2019		1,544,078
	150	M	Novelis, Inc., 5.875%, 9/30/2026 (a)		147,375
	140	M	SunCoke Energy Partners, LP, 7.5%, 6/15/2025 (a)		144,900
	25	M	United States Steel Corp., 6.25%, 3/15/2026		25,000
					5,666,190
			Real Estate—2.9%
	2,000	M	Alexandria Real Estate Equities, Inc., 3.95%, 1/15/2028		1,957,156
	1,000	M	Boston Properties, LP, 5.875%, 10/15/2019		1,038,868
			Digital Realty Trust, LP:
	500	M	5.25%, 3/15/2021		526,526
	675	M	4.75%, 10/1/2025		705,780
	150	M	Equinix, Inc., 5.375%, 4/1/2023		153,938
	1,000	M	ERP Operating, LP, 3.375%, 6/1/2025		988,294

190

Principal Amount			Security	Value
$	1,500	M	Essex Portfolio, LP, 3.875%, 5/1/2024	$	1,511,058
	140	M	Geo Group, Inc., 5.875%, 10/15/2024		139,300
	150	M	Greystar Real Estate Partners,, 5.75%, 12/1/2025 (a)		150,000
	1,000	M	HCP, Inc., 4.25%, 11/15/2023		1,024,924
	300	M	Iron Mountain, Inc., 5.75%, 8/15/2024		292,125
	2,000	M	Realty Income Corp., 3.25%, 10/15/2022		1,986,320
	2,000	M	Simon Property Group, LP, 3.375%, 10/1/2024		1,975,686
	2,700	M	STORE Capital Corp., 4.5%, 3/15/2028		2,687,186
	3,000	M	Tanger Properties, LP, 3.125%, 9/1/2026		2,755,992
	1,600	M	Ventas Realty, LP, 4.75%, 6/1/2021		1,665,931
	1,500	M	Vornado Realty, LP, 3.5%, 1/15/2025		1,446,376
			Welltower, Inc.:
	3,000	M	4%, 6/1/2025		3,002,217
	2,000	M	4.25%, 4/1/2026		2,028,164
					26,035,841
			Retail-General Merchandise—1.0%
	25	M	1011778 B.C., ULC, 4.625%, 1/15/2022 (a)		25,125
	4,000	M	Amazon.com, Inc., 4.8%, 12/5/2034		4,443,860
	150	M	AmeriGas Partners, LP, 5.5%, 5/20/2025		145,500
	3,000	M	Home Depot, Inc., 5.875%, 12/16/2036		3,862,371
	25	M	J.C. Penney Co., Inc., 8.625%, 3/15/2025		23,563
	150	M	KFC Holding Co., LLC, 5%, 6/1/2024 (a)		149,438
					8,649,857
			Schools—.2%
	1,750	M	Yale University, 2.086%, 4/15/2019		1,746,328
			Services—.0%
	175	M	AECOM, 5.125%, 3/15/2027		168,997
	25	M	First Data Corp., 5.375%, 8/15/2023 (a)		25,500
	150	M	United Rentals, Inc., 4.625%, 10/15/2025		146,250
					340,747

191

Portfolio of Investments (continued)

TOTAL RETURN FUND

March 31, 2018

Principal Amount			Security	Value
			Telecommunications—.6%
$	3,000	M	AT&T, Inc., 4.25%, 3/1/2027	$	3,038,109
	150	M	CenturyLink, Inc., 5.8%, 3/15/2022		147,187
	150	M	Cincinnati Bell, Inc., 7%, 7/15/2024 (a)		135,000
	25	M	Frontier Communications Corp., 10.5%, 9/15/2022		21,033
	125	M	GCI, Inc., 6.875%, 4/15/2025		131,563
	150	M	Sprint Capital Corp., 6.875%, 11/15/2028		140,250
	1,500	M	Verizon Communications, Inc., 4.272%, 1/15/2036		1,440,292
	75	M	Zayo Group, LLC, 6.375%, 5/15/2025		77,906
					5,131,340
			Transportation—.9%
	150	M	BCD Acquisition, Inc., 9.625%, 9/15/2023 (a)		162,750
			Burlington Northern Santa Fe, LLC:
	1,500	M	7%, 12/15/2025		1,846,830
	1,000	M	5.15%, 9/1/2043		1,160,063
	1,000	M	Penske Truck Leasing Co., LP, 4.875%, 7/11/2022 (a)		1,053,482
	4,000	M	Southwest Airlines Co., 3%, 11/15/2026		3,769,760
	150	M	XPO Logistics, Inc., 6.5%, 6/15/2022 (a)		155,250
					8,148,135
			Utilities—1.8%
	150	M	Calpine Corp., 5.25%, 6/1/2026 (a)		145,312
	150	M	Cheniere Corpus Christi Holdings, 5.875%, 3/31/2025		157,500
	1,500	M	Commonwealth Edison Co., 5.9%, 3/15/2036		1,849,452
	140	M	DCP Midstream, LP, 7.375%, 12/29/2049 †		139,738
	2,335	M	Duke Energy Progress, Inc., 4.15%, 12/1/2044		2,403,086
	1,000	M	E.ON International Finance BV, 5.8%, 4/30/2018 (a)		1,002,291
	1,000	M	Electricite de France SA, 3.625%, 10/13/2025 (a)		1,001,457
	2,000	M	Entergy Arkansas, Inc., 4.95%, 12/15/2044		2,051,658
	1,500	M	Exelon Generation Co., LLC, 3.4%, 3/15/2022		1,502,611
	150	M	NRG Yield Operating, LLC, 5%, 9/15/2026		148,125
	2,000	M	Ohio Power Co., 5.375%, 10/1/2021		2,153,288
	2,000	M	Oklahoma Gas & Electric Co., 4%, 12/15/2044		2,019,556

192

Principal Amount			Security	Value
$	1,100	M	Sempra Energy, 9.8%, 2/15/2019	$	1,164,877
					15,738,951
			Waste Management—.0%
	150	M	Covanta Holding Corp., 5.875%, 3/1/2024		147,375
	100	M	GFL Environmental, Inc., 5.375%, 3/1/2023 (a)		98,500
					245,875
			Wireless Communications—.1%
	150	M	Intelsat Jackson Holdings SA, 8%, 2/15/2024 (a)		158,063
	150	M	Level 3 Financing, Inc., 5.375%, 1/15/2024		146,532
	150	M	Sprint Communications, Inc., 6%, 11/15/2022		147,563
	150	M	T-Mobile USA, Inc., 6%, 3/1/2023		156,375
					608,533
	Total Value of Corporate Bonds (cost $245,674,382)				242,704,967
			RESIDENTIAL MORTGAGE-BACKED SECURITIES—5.6%
			Fannie Mae—4.8%
	1,453	M	2.5%, 2/1/2030 - 7/1/2031		1,426,947
	4,999	M	3%, 3/1/2027 - 2/1/2031		5,009,370
	11,708	M	3.5%, 11/1/2028 - 1/1/2048		11,765,789
	18,525	M	4%, 12/1/2040 - 4/1/2047		19,070,841
	1,910	M	4.5%, 9/1/2040 - 1/1/2047		2,019,186
	1,746	M	5%, 4/1/2040 - 3/1/2042		1,890,629
	630	M	5.5%, 5/1/2033 - 10/1/2039		693,758
	444	M	6%, 5/1/2036 - 10/1/2040		498,214
	228	M	6.5%, 11/1/2033 - 6/1/2036		254,734
	530	M	7%, 3/1/2032 - 8/1/2032		568,256
					43,197,724
			Freddie Mac—.8%
	1,597	M	3.5%, 8/1/2026 - 7/1/2044		1,622,069
	842	M	4%, 7/1/2044 - 4/1/2045		867,712

193

Portfolio of Investments (continued)

TOTAL RETURN FUND

March 31, 2018

Principal Amount			Security	Value
			Freddie Mac (continued)
$	3,584	M	4.5%, 10/1/2040 - 5/1/2044	$	3,780,254
	778	M	5.5%, 5/1/2038 - 10/1/2039		852,343
					7,122,378
	Total Value of Residential Mortgage-Backed Securities (cost $51,011,678)				50,320,102
			U.S. GOVERNMENT OBLIGATIONS—1.8%
	5,000	M	U.S. Treasury Bonds, 3.125%, 8/15/2044		5,150,000
			U.S. Treasury Notes:
	5,500	M	1.375%, 4/30/2020		5,395,478
	6,000	M	2.375%, 5/15/2027		5,822,226
	Total Value of U.S. Government Obligations (cost $16,918,876)				16,367,704
			TAXABLE MUNICIPAL BONDS—.8%
	2,325	M	Met. St. Louis, MO Swr. Dist. Wstwtr. Sys. Rev., 5%, 5/1/2047		2,692,071
	2,700	M	New Jersey State Tpk. Auth., 4%, 1/1/2043		2,787,993
	1,425	M	Tomball, TX ISD GO, 5%, 2/15/2041		1,665,469
	Total Value of Taxable Municipal Bonds (cost $7,268,736)				7,145,533
			U.S. GOVERNMENT AGENCY OBLIGATIONS—.6%
			Federal Farm Credit Bank:
	4,500	M	1.72918%, 10/19/2018 †		4,505,625
	1,000	M	1.92394%, 5/22/2018 †		1,000,267
	Total Value of U.S. Government Agency Obligations (cost $5,506,318)				5,505,892
			PASS-THROUGH CERTIFICATES—.3%
			Transportation
	2,429	M	American Airlines 17-2 AA PTT, 3.35%, 10/15/2029 (cost $2,448,480)		2,361,542

194

Principal Amount			Security		Value
			SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS—3.0%
			Federal Home Loan Bank:
$	7,000	M	1.54%, 4/11/2018		$	6,997,109
	17,700	M	1.57%, 4/18/2018			17,687,026
	2,000	M	1.7%, 4/26/2018			1,997,800
	Total Value of Short-Term U.S. Government Agency Obligations (cost $26,681,499)					26,681,935
			SHORT-TERM U.S. GOVERNMENT OBLIGATIONS—.2%
	1,500	M	U.S. Treasury Bills, 1.535%, 4/26/2018 (cost $1,498,399)			1,498,410
	Total Value of Investments (cost $687,408,793)			99.2%		886,190,143
	Other Assets, Less Liabilities			.8		7,198,265
	Net Assets			100.0%	$	893,388,408

* Non-income producing

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 4).

† Interest rates on adjustable rate bonds are determined and reset periodically. The interest rates shown are the rates in effect of March 31, 2018.

Summary of Abbreviations:

ADR	American Depositary Receipts
ETF	Exchange Traded Fund
GO	General Obligation
ISD	Independent School District
LLLP	Limited Liability Limited Partnership
REIT	Real Estate Investment Trust
PTT	Pass-Through Trust
ULC	Unlimited Liability Corporation

195

Portfolio of Investments (continued)

TOTAL RETURN FUND

March 31, 2018

The Fund’s assets and liabilities are classified into the following three levels based on the inputs used to value the assets and liabilities:

Level 1 —   Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 —   Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 —   Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2018:

	Level 1		Level 2		Level 3		Total
Common Stocks	$	533,604,058	$	—	$	—	$	533,604,058
Corporate Bonds		—		242,704,967		—		242,704,967
Residential Mortgage-Backed Securities		—		50,320,102		—		50,320,102
U.S. Government Obligations		—		16,367,704		—		16,367,704
Taxable Municipal Bonds		—		7,145,533		—		7,145,533
U.S. Government Agency Obligations		—		5,505,892		—		5,505,892
Pass-Through Certificates		—		2,361,542		—		2,361,542
Short-Term U.S. Government Agency Obligations		—		26,681,935		—		26,681,935
Short-Term U.S. Government Obligations		—		1,498,410		—		1,498,410
Total Investments in Securities*	$	533,604,058	$	352,586,085	$	—	$	886,190,143

* The Portfolio of Investments provides information on the industry categorization for common stocks, corporate bonds and pass-through certificates.

There were no transfers into or from Level 1 and Level 2 by the Fund during the period ended March 31, 2018. Transfers, if any, between Levels are recognized at the end of the reporting period.

See notes to financial statements

196

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197

Statements of Assets and Liabilities

FIRST INVESTORS INCOME FUNDS

March 31, 2018

	BALANCED INCOME
Assets
Investments in securities
At identified cost	$	51,741,549
At value (Note 1A)	$	52,943,151
Cash		784,310
Receivables:
Investment securities sold		—
Deposits at broker for futures contracts		289,232
Interest and dividends		372,164
Shares sold		70,527
Due from broker-variation margin futures		102,401
Other assets		2,355
Total Assets		54,564,140
Liabilities
Payables:
Investment securities purchased		602,983
Shares redeemed		11,910
Dividends payable		2,985
Unrealized depreciation on open futures contracts		57,500
Accrued advisory fees		18,643
Accrued shareholder servicing costs		6,798
Accrued expenses		101,157
Total Liabilities		801,976
Net Assets	$	53,762,164
Net Assets Consist of:
Capital paid in	$	52,381,185
Undistributed net investment deficit		(93,223	)
Accumulated net realized gain (loss) on investments and futures contracts		330,494
Net unrealized appreciation (depreciation) in value on investments and futures contracts		1,143,708
Total	$	53,762,164

See notes to financial statements

198

FLOATING RATE			FUND FOR INCOME			GOVERNMENT			GOVERNMENT CASH MANAGEMENT
$	206,679,811		$	681,556,303		$	266,268,502		$	134,134,126
$	208,064,492		$	678,630,678		$	259,848,385		$	134,134,126
	21,491,138			18,795,368			2,011,290			1,080,227
	4,729,220			4,760,450			—			—
	—			—			—			—
	710,209			10,698,025			1,020,073			32,119
	153,307			289,964			177,807			2,471
	—			—			—			—
	12,392			45,903			19,900			8,356
	235,160,758			713,220,388			263,077,455			135,257,299
	26,298,490			32,215,254			—			—
	329,097			937,766			510,947			939,057
	77,510			544,078			18,272			2,451
	—			—			—			—
	92,045			406,542			108,655			14,641
	32,610			116,170			54,366			44,425
	120,549			124,926			43,779			61,137
	26,950,301			34,344,736			736,019			1,061,711
$	208,210,457		$	678,875,652		$	262,341,436		$	134,195,588
$	210,988,033		$	830,181,625		$	288,325,283		$	134,195,588
	(349,997	)		(3,853,910	)		(489,127	)		—
	(3,812,260	)		(144,526,438	)		(19,074,603	)		—
	1,384,681			(2,925,625	)		(6,420,117	)		—
$	208,210,457		$	678,875,652		$	262,341,436		$	134,195,588

199

Statements of Assets and Liabilities

FIRST INVESTORS INCOME FUNDS

March 31, 2018

	BALANCED INCOME
Net Assets:
Class A	$	53,537,603
Class B		N/A
Advisor Class	$	49,949
Institutional Class	$	174,612
Shares outstanding (Note 7):
Class A		4,956,297
Class B		N/A
Advisor Class		4,604
Institutional Class		16,091
Net asset value and redemption price per share - Class A	$	10.80
Maximum offering price per share - Class A*	$	11.25+
Net asset value and offering price per share - Class B**		N/A
Net asset value, offering price and redemption price per share - Advisor Class	$	10.85
Net asset value, offering price and redemption price per share - Institutional Class	$	10.85

#	Also maximum offering price per share.
*	On purchases of $100,000 or more, the sales charge is reduced (Note 7).
+	Net asset value/.96
++	Net asset value/.975
**	Redemption price is equal to net asset value less contingent deferred sales charges, if applicable (Note 7).

See notes to financial statements

200

FLOATING RATE		FUND FOR INCOME		GOVERNMENT		GOVERNMENT CASH MANAGEMENT
$	64,807,315	$	539,443,106	$	215,282,684	$	131,662,112
	N/A	$	1,956,004	$	679,262	$	181,034
$	117,949,113	$	85,734,320	$	37,707,108		N/A
$	25,454,029	$	51,742,222	$	8,672,382	$	2,352,442
	6,697,745		220,650,056		21,110,762		131,662,112
	N/A		798,786		66,731		181,034
	12,182,398		35,077,246		3,692,179		N/A
	2,630,032		21,070,126		844,651		2,352,442
$	9.68	$	2.44	$	10.20		$1.00#
$	9.93++	$	2.54+	$	10.63+		N/A
	N/A	$	2.45	$	10.18	$	1.00
$	9.68	$	2.44	$	10.21		N/A
$	9.68	$	2.46	$	10.27	$	1.00

201

Statements of Assets and Liabilities

FIRST INVESTORS INCOME FUNDS

March 31, 2018

	INTERNATIONAL OPPORTUNITIES BOND
Assets
Investments in securities:
Cost - Unaffiliated issuers	$	155,364,106
Cost - Affiliated issuers (Note 2)		—
Total cost of investments	$	155,364,106
Value - Unaffiliated issuers (Note 1A)	$	150,018,529
Value - Affiliated issuers (Note 2)		—
Total value of investments		150,018,529
Cash		2,901,086
Receivables:
Investment securities sold		—
Deposits at broker for futures contracts		—
Dividends and interest		1,640,243
Shares sold		527,992
Due from broker-variation margin futures		—
Unrealized gain on foreign exchange contracts (Note 5)		474,111
Other assets		8,237
Total Assets		155,570,198
Liabilities
Cash overdrafts		—
Payables:
Investment securities purchased		480,244
Shares redeemed		100,003
Dividends payable		—
Unrealized loss on foreign exchange contracts (Note 5)		593,920
Unrealized depreciation on open futures contracts (Note 5)		—
Accrued advisory fees		96,348
Accrued shareholder servicing costs		30,433
Accrued expenses		80,653
Total Liabilities		1,381,601
Net Assets	$	154,188,597
Net Assets Consist of:
Capital paid in	$	161,433,682
Undistributed net investment income (deficit)		(20,018	)
Accumulated net realized loss on investments, futures contracts and foreign currency transactions		(1,772,753	)
Net unrealized depreciation in value of investments, futures contracts and foreign currency transactions		(5,452,314	)
Total	$	154,188,597

See notes to financial statements

202

INVESTMENT GRADE			LIMITED DURATION BOND			STRATEGIC INCOME
$	616,247,750		$	123,468,388		$	3,998,091
	—			—			160,391,660
$	616,247,750		$	123,468,388		$	164,389,751
$	614,582,840		$	121,636,092		$	3,998,168
	—			—			154,100,720
	614,582,840			121,636,092			158,098,888
	1,049,617			—			3,233,498
	9,620,188			10,649,994			—
	—			28,000			—
	7,158,294			1,083,709			494,173
	376,763			82,869			124,202
	—			12,117			—
	—			—			—
	38,531			8,212			9,956
	632,826,233			133,500,993			161,960,717
	—			11,052			—
	10,206,693			4,591,779			—
	742,011			515,948			283,375
	161,994			82,068			17,422
	—			—			—
	—			16,406			—
	288,967			17,345			6,873
	90,561			19,713			20,622
	25,138			35,716			37,106
	11,515,364			5,290,027			365,398
$	621,310,869		$	128,210,966		$	161,595,319
$	640,421,307		$	135,823,641		$	170,071,552
	(14,760,701	)		(2,962,907	)		56,751
	(2,684,827	)		(2,800,432	)		(2,242,121	)
	(1,664,910	)		(1,849,336	)		(6,290,863	)
$	621,310,869		$	128,210,966		$	161,595,319

203

Statements of Assets and Liabilities

FIRST INVESTORS INCOME FUNDS

March 31, 2018

	INTERNATIONAL OPPORTUNITIES BOND
Net Assets:
Class A	$	62,032,202
Class B		N/A
Advisor Class	$	83,212,314
Institutional Class	$	8,944,081
Shares outstanding (Note 7):
Class A		6,495,048
Class B		N/A
Advisor Class		8,644,731
Institutional Class		924,896
Net asset value and redemption price per share - Class A	$	9.55
Maximum offering price per share - Class A*	$	9.95+
Net asset value and offering price per share - Class B**		N/A
Net asset value, offering price and redemption price per share - Advisor Class	$	9.63
Net asset value, offering price and redemption price per share - Institutional Class	$	9.67

*	On purchases of $100,000 or more, the sales charge is reduced (Note 7).
+	Net asset value/.96
++	Net asset value/.975
**	Redemption price is equal to net asset value less contingent deferred sales charges, if applicable (Note 7).

See notes to financial statements

204

INVESTMENT GRADE		LIMITED DURATION BOND		STRATEGIC INCOME
$	437,020,893	$	61,355,762	$	160,840,747
$	1,734,556		N/A		N/A
$	156,739,446	$	34,317,411	$	754,572
$	25,815,974	$	32,537,793		N/A
	46,724,577		6,643,648		17,260,515
	186,361		N/A		N/A
	16,658,640		3,705,176		81,082
	2,751,982		3,506,788		N/A
$	9.35	$	9.24	$	9.32
$	9.74+	$	9.48++	$	9.71+
$	9.31		N/A		N/A
$	9.41	$	9.26	$	9.31
$	9.38	$	9.28		N/A

205

Statements of Assets and Liabilities

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

	COVERED CALL STRATEGY
Assets
Investments in securities
At identified cost	$	333,452,376
At value (Note 1A)	$	361,053,371
Cash		4,882,803
Receivables:
Investment securities sold		—
Options contracts written		3,534
Deposits at broker for futures contracts		—
Dividends and interest		230,590
Shares sold		1,335,581
Unrealized gain on foreign exchange and futures contracts (Note 5)		—
Other assets		11,014
Total Assets		367,516,893
Liabilities
Options written, at value (Note 5)		4,961,596	(a)
Payables:
Investment securities purchased		—
Shares redeemed		749,137
Due to broker-variation margin futures		—
Accrued advisory fees		224,980
Accrued shareholder servicing costs		70,070
Accrued expenses		26,942
Total Liabilities		6,032,725
Net Assets	$	361,484,168
Net Assets Consist of:
Capital paid in	$	348,291,833
Undistributed net investment income (deficit)		13,924
Accumulated net realized gain (loss) on investments, options and futures contracts, and foreign currency transactions		(17,564,860	)
Net unrealized appreciation in value of foreign exchange contracts		—
Net unrealized appreciation in value of investments, options and futures contracts, and foreign currency transactions		30,743,271
Total	$	361,484,168

(a)	Premiums received from written options $8,103,872
(b)	Premiums received from written options $416,922

See notes to financial statements

206

EQUITY INCOME			GLOBAL			GROWTH & INCOME		HEDGED U.S. EQUITY OPPORTUNITIES			INTERNATIONAL
$	429,362,620		$	521,011,354		$	1,127,009,133	$	77,831,835		$	290,163,725
$	630,810,443		$	618,029,915		$	1,851,652,074	$	86,855,457		$	387,236,457
	3,714,855			549,025			732,246		2,511,212			551,407
	1,162,886			375,357			13,472,480		67,830			—
	—			—			—		—			—
	—			—			—		1,045,964			—
	1,070,316			1,234,054			2,701,356		94,958			1,715,737
	320,364			461,923			1,005,223		87,635			1,050,918
	—			—			—		886,064			—
	38,246			34,199			112,121		3,298			20,052
	637,117,110			620,684,473			1,869,675,500		91,552,418			390,574,571
	—			—			—		364,634	(b)		—
	2,105,076			489,267			15,988,662		46,891			—
	871,955			683,522			2,993,952		217,687			436,742
	—			—			—		1,157,925			—
	398,724			483,447			1,085,620		88,521			321,131
	89,233			85,143			264,625		13,808			71,817
	43,648			110,431			91,993		74,875			93,127
	3,508,636			1,851,810			20,424,852		1,964,341			922,817
$	633,608,474		$	618,832,663		$	1,849,250,648	$	89,588,077		$	389,651,754
$	424,826,841		$	508,074,663		$	1,062,329,979	$	80,709,184		$	295,597,229
	(541,751	)		(2,300,811	)		93,322		(105,025	)		(712,815	)
	7,875,561			16,011,001			62,184,406		(977,739	)		(2,324,484	)
	—			—			—		1,373			—
	201,447,823			97,047,810			724,642,941		9,960,284			97,091,824
$	633,608,474		$	618,832,663		$	1,849,250,648	$	89,588,077		$	389,651,754

207

Statements of Assets and Liabilities

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

	COVERED CALL STRATEGY
Net Assets:
Class A	$	204,021,504
Class B		N/A
Advisor Class	$	155,066,438
Institutional Class	$	2,396,226
Shares outstanding (Note 7):
Class A		18,307,180
Class B		N/A
Advisor Class		13,944,873
Institutional Class		216,995
Net asset value and redemption price per share - Class A	$	11.14
Maximum offering price per share - Class A (Net asset value/.9425)*	$	11.82
Net asset value and offering price per share - Class B**		N/A
Net asset value, offering price and redemption price per share - Advisor Class	$	11.12
Net asset value, offering price and redemption price per share - Institutional Class	$	11.04

*	On purchases of $50,000 or more, the sales charge is reduced (Note 7).
**	Redemption price is equal to net asset value less contingent deferred sales charges, if applicable (Note 7).

See notes to financial statements

208

EQUITY INCOME		GLOBAL		GROWTH & INCOME		HEDGED U.S. EQUITY OPPORTUNITIES		INTERNATIONAL
$	545,534,922	$	390,110,994	$	1,640,951,863	$	52,520,962	$	254,765,245
$	2,599,935	$	2,452,292	$	12,598,978		N/A	$	1,345,003
$	83,080,624	$	222,064,727	$	184,502,683	$	36,663,346	$	129,997,188
$	2,392,993	$	4,204,650	$	11,197,124	$	403,769	$	3,544,318
	52,044,418		46,180,157		71,571,471		4,690,452		15,899,422
	253,430		374,459		593,209		N/A		90,241
	7,875,430		25,689,637		7,987,534		3,257,607		7,983,388
	227,901		483,768		486,277		35,805		217,049
$	10.48	$	8.45	$	22.93	$	11.20	$	16.02
$	11.12	$	8.97	$	24.33	$	11.88	$	17.00
$	10.26	$	6.55	$	21.24		N/A	$	14.90
$	10.55	$	8.64	$	23.10	$	11.25	$	16.28
$	10.50	$	8.69	$	23.03	$	11.28	$	16.33

209

Statements of Assets and Liabilities

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

	LONG SHORT
Assets
Investments in securities:
At identified cost	$	41,083,756
At value (Note 1A)	$	45,067,122
Cash		15,936,744
Cash held at broker for securities sold short		19,792,988
Receivables:
Investment securities sold		1,066,267
Dividends and interest		1,557
Shares sold		33,280
Other assets		2,157
Total Assets		81,900,115
Liabilities
Cash overdraft		—
Securities sold short (at value)		25,107,515	(c)
Payables:
Investment securities purchased		833,990
Dividends payable		—
Dividends on securities sold short		27,295
Shares redeemed		64,130
Accrued advisory fees		70,530
Accrued shareholder servicing costs		11,454
Accrued expenses		26,494
Total Liabilities		26,141,408
Net Assets	$	55,758,707
Net Assets Consist of:
Capital paid in	$	55,680,359
Undistributed net investment income (deficit)		(401,383	)
Accumulated net realized gain (loss) on investments		(2,721,508	)
Net unrealized appreciation (depreciation) in value of investments		3,201,239
Total	$	55,758,707

(c) Proceeds from securities sold short $24,325,387

See notes to financial statements

210

OPPORTUNITY		REAL ESTATE			SELECT GROWTH			SPECIAL SITUATIONS			TOTAL RETURN
$	765,683,320	$	128,825,873		$	430,502,468		$	570,590,639		$	687,408,793
$	1,100,524,190	$	119,630,954		$	583,600,288		$	709,806,344		$	886,190,143
	3,808,595		4,177,029			3,515,046			—			1,552,857
	—		—			—			—			—
	6,633,056		370,609			—			7,945,054			6,126,449
	1,183,666		559,911			178,180			778,030			3,978,170
	1,018,883		149,283			1,060,830			1,388,927			315,284
	63,891		6,163			30,123			37,535			57,586
	1,113,232,281		124,893,949			588,384,467			719,955,890			898,220,489
	—		—			—			657,432			—
	—		—			—			—			—
	5,396,596		613,369			—			5,918,652			2,752,587
	—		—			230
	—		—			—			—			—
	1,732,752		73,508			939,547			826,210			1,362,043
	668,168		87,389			371,368			476,104			534,192
	191,559		32,467			75,817			114,874			116,899
	96,802		51,051			38,025			38,229			66,360
	8,085,877		857,784			1,424,987			8,031,501			4,832,081
$	1,105,146,404	$	124,036,165		$	586,959,480		$	711,924,389		$	893,388,408
$	731,829,952	$	133,733,225		$	431,897,415		$	513,817,512		$	684,400,197
	544,614		576,849			(101,112	)		(256,733	)		(6,999,726	)
	37,930,968		(1,078,990	)		2,065,357			59,147,905			17,206,589
	334,840,870		(9,194,919	)		153,097,820			139,215,705			198,781,348
$	1,105,146,404	$	124,036,165		$	586,959,480		$	711,924,389		$	893,388,408

211

Statements of Assets and Liabilities

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

	LONG SHORT
Net Assets:
Class A	$	13,168,752
Class B		N/A
Advisor Class	$	42,476,118
Institutional Class	$	113,837
Shares outstanding (Note 7):
Class A		1,280,007
Class B		N/A
Advisor Class		4,113,542
Institutional Class		11,007
Net asset value and redemption price per share - Class A	$	10.29
Maximum offering price per share - Class A (Net asset value/.9425)*	$	10.92
Net asset value and offering price per share - Class B**		N/A
Net asset value, offering price and redemption price per share - Advisor Class	$	10.33
Net asset value, offering price and redemption price per share - Institutional Class	$	10.34

*	On purchases of $50,000 or more, the sales charge is reduced (Note 7).
**	Redemption price is equal to net asset value less contingent deferred sales charges, if applicable (Note 7).

See notes to financial statements

212

OPPORTUNITY		REAL ESTATE		SELECT GROWTH		SPECIAL SITUATIONS		TOTAL RETURN
$	1,002,472,286	$	38,213,932	$	481,214,129	$	554,527,894	$	852,784,591
$	6,730,590		N/A	$	3,014,351	$	2,751,415	$	6,331,294
$	90,076,502	$	85,349,838	$	96,617,438	$	145,661,882	$	944,978
$	5,867,026	$	472,395	$	6,113,562	$	8,983,198	$	33,327,545
	24,817,809		4,361,458		40,334,274		17,909,277		43,452,512
	217,037		N/A		304,887		118,919		328,019
	2,189,217		9,726,290		7,951,669		4,655,211		47,899
	142,797		53,892		500,414		285,265		1,683,502
$	40.39	$	8.76	$	11.93	$	30.96	$	19.63
$	42.85	$	9.29	$	12.66	$	32.85	$	20.83
$	31.01		N/A	$	9.89	$	23.14	$	19.30
$	41.15	$	8.78	$	12.15	$	31.29	$	19.73
$	41.09	$	8.77	$	12.22	$	31.49	$	19.80

213

Statements of Operations

FIRST INVESTORS INCOME FUNDS

Six Months Ended March 31, 2018

	BALANCED INCOME
Investment Income
Interest	$	505,926
Dividends		296,561	(a)
Total income		802,487
Expenses (Notes 1 and 3):
Advisory fees		178,971
Distribution plan expenses-Class A		76,438
Distribution plan expenses-Class B		N/A
Shareholder servicing costs-Class A		36,465
Shareholder servicing costs-Class B		N/A
Shareholder servicing costs-Advisor Class		18
Shareholder servicing costs-Institutional Class		28
Professional fees		17,400
Custodian fees		6,454
Registration fees		44,999
Reports to shareholders		6,426
Trustees’ fees		1,457
Other expenses		8,165
Total expenses		376,821
Less: Expenses waived and/or assumed (Note 3)		(84,173	)
Expenses paid indirectly (Note 1G)		(813	)
Net expenses		291,835
Net investment income		510,652
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts (Notes 2 and 5):
Net realized gain (loss) on:
Investments		199,194
Futures contracts		206,109
Net realized gain (loss) on investments and futures contracts		405,303
Net unrealized appreciation (depreciation) on:
Investments		(781,396	)
Futures contracts		(103,867	)
Net unrealized appreciation (depreciation) on investments and futures contracts		(885,263	)
Net gain (loss) on investments and futures contracts		(479,960	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	30,692

(a) Net of $1,401 foreign taxes withheld

See notes to financial statements

214

FLOATING RATE			FUND FOR INCOME				GOVERNMENT			GOVERNMENT CASH MANAGEMENT
$	3,994,454		$	20,609,478			$	3,478,354		$	817,841
	—			—				—			—
	3,994,454			20,609,478				3,478,354			817,841
	588,541			2,542,754				861,346			327,371
	98,415			837,520				336,354			N/A
	N/A			12,505				3,958			545
	58,283			434,315				201,088			230,302
	N/A			74,252				1,526			327
	77,868			2,708				37,209			N/A
	3,348			10,058				85			369
	24,901			53,050				30,148			28,349
	39,088			24,953				9,050			9,696
	28,100			38,499				37,750			35,000
	7,361			16,045				10,655			8,917
	5,682			20,905				7,786			3,847
	42,336			59,253				22,860			13,535
	973,923			4,126,817				1,559,815			658,258
	(56,511	)		(76,967	)			(208,811	)		(262,731	)
	(2,608	)		(10,008	)			(3,157	)		(2,248	)
	914,804			4,039,842				1,347,847			393,279
	3,079,650			16,569,636				2,130,507			424,562
	106,864			5,154,064				(486,615	)		—
	—			—				—			—
	106,864			5,154,064				(486,615	)		—
	154,876			(26,331,735	)	��		(5,224,622	)		—
	—			—				—			—
	154,876			(26,331,735	)			(5,224,622	)		—
	261,740			(21,177,671	)			(5,711,237	)		—
$	3,341,390		$	(4,608,035	)		$	(3,580,730	)	$	424,562

215

Statements of Operations

FIRST INVESTORS INCOME FUNDS

Six Months Ended March 31, 2018

	INTERNATIONAL OPPORTUNITIES BOND
Investment Income
Interest	$	2,825,618	(b)
Dividends from affiliate (Note 2)		—
Total income		2,825,618
Expenses (Notes 1 and 3):
Advisory fees		534,271
Distribution plan expenses-Class A		90,043
Distribution plan expenses-Class B		N/A
Shareholder servicing costs-Class A		59,907
Shareholder servicing costs-Class B		N/A
Shareholder servicing costs-Advisor Class		68,293
Shareholder servicing costs-Institutional Class		1,290
Professional fees		21,900
Custodian fees		33,176
Registration fees		33,001
Reports to shareholders		8,119
Trustees’ fees		4,120
Other expenses		16,277
Total expenses		870,397
Less: Expenses waived and/or assumed (Note 3)		—
Expenses paid indirectly (Note 1G)		(551	)
Net expenses		869,846
Net investment income		1,955,772
Realized and Unrealized Gain (Loss) on Investments, Affiliate, Futures Contracts and Foreign Currency Transactions (Notes 2 and 5):
Net realized gain (loss) on:
Investments		2,142,903
Affiliate		—
Foreign currency transactions		485,391
Net realized gain (loss) on investments, affiliate and foreign currency transactions		2,628,294
Net unrealized appreciation (depreciation) on:
Investments		1,432,856
Affiliate		—
Foreign currency transactions		(271,104	)
Net unrealized appreciation (depreciation) on investments, affiliate and foreign currency transactions		1,161,752
Net gain (loss) on investments, affiliate and foreign currency transactions		3,790,046
Net Increase (Decrease) in Net Assets Resulting from Operations	$	5,745,818

(b) Net of $2,152 foreign taxes reimbursed.

See notes to financial statements

216

INVESTMENT GRADE			LIMITED DURATION BOND			STRATEGIC INCOME
$	11,645,038		$	1,459,470		$	34,817
	—			—			3,255,339
	11,645,038			1,459,470			3,290,156
	2,047,068			374,142			40,713
	676,802			93,026			243,103
	9,494			N/A			N/A
	340,254			45,536			106,801
	2,981			N/A			N/A
	81,463			29,214			378
	3,665			5,251			N/A
	44,800			26,398			24,813
	9,703			5,217			4,881
	52,999			37,500			27,750
	19,558			5,909			4,486
	18,467			3,810			4,812
	27,874			15,890			6,969
	3,335,128			641,893			464,706
	(330,720	)		(105,716	)		—
	(7,544	)		(1,628	)		(1,978	)
	2,996,864			534,549			462,728
	8,648,174			924,921			2,827,428
	1,559,932			(631,204	)		(264	)
	—			—			(14,064	)
	—			—			—
	1,559,932			(631,204	)		(14,328	)
	(19,322,365	)		(1,831,898	)		2
	—			—			(3,570,664	)
	—			—			—
	(19,322,365	)		(1,831,898	)		(3,570,662	)
	(17,762,433	)		(2,463,102	)		(3,584,990	)
$	(9,114,259	)	$	(1,538,181	)	$	(757,562	)

217

Statements of Operations

FIRST INVESTORS EQUITY FUNDS

Six Months Ended March 31, 2018

	COVERED CALL STRATEGY
Investment Income
Dividends	$	3,704,454
Interest		—
Total income		3,704,454
Expenses (Notes 1 and 3):
Advisory fees		1,331,037
Distribution plan expenses-Class A		237,445
Distribution plan expenses-Class B		N/A
Shareholder servicing costs-Class A		157,802
Shareholder servicing costs-Class B		N/A
Shareholder servicing costs-Advisor Class		88,272
Shareholder servicing costs-Institutional Class		1,171
Professional fees		24,498
Custodian fees		7,395
Registration fees		61,500
Reports to shareholders		16,399
Trustees’ fees		9,400
Other expenses		22,293
Total expenses		1,957,212
Less: Expenses waived (Note 3)		(20,609	)
Expenses paid indirectly (Note 1G)		(3,700	)
Net expenses		1,932,903
Net investment income (loss)		1,771,551
Realized and Unrealized Gain (Loss) on Investments, Options and Futures Contracts, and Foreign Currency Transactions (Note 2 and 5):
Net realized gain (loss) on:
Investments		924,580
Options contracts		(17,348,723	)
Futures contracts		—
Foreign currency transactions		—
Net realized gain (loss) on investments, options and futures contracts, and foreign currency transactions		(16,424,143	)
Net unrealized appreciation (depreciation) on:
Investments		7,998,009
Options contracts		5,259,659
Futures contracts		—
Foreign currency transactions		—
Net unrealized appreciation (depreciation) on investments, options, futures contracts, and foreign currency transactions		13,257,668
Net gain (loss) on investments, options, futures contracts, and foreign currency transactions		(3,166,475	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(1,394,924	)

(a)	Net of $30,531 foreign taxes withheld
(b)	Net of $45,127 foreign taxes withheld
(c)	Net of $56,061 foreign taxes withheld
(d)	Net of $3,547 foreign taxes withheld
(e)	Net of $167,384 foreign taxes withheld

See notes to financial statements

218

EQUITY INCOME			GLOBAL			GROWTH & INCOME			HEDGED U.S. EQUITY OPPORTUNITIES			INTERNATIONAL
$	7,810,409	(a)	$	2,775,605	(b)	$	20,988,670	(c)	$	652,384	(d)	$	1,949,865	(e)
	142,074			61,110			119,933			—			77,913
	7,952,483			2,836,715			21,108,603			652,384			2,027,778
	2,385,656			2,916,663			6,498,920			506,121			1,842,449
	858,931			594,623			2,578,334			61,980			376,554
	14,159			12,844			68,609			N/A			7,108
	365,551			312,957			1,122,591			41,381			253,991
	3,671			3,251			13,795			N/A			2,231
	28,963			77,348			60,378			5,444			78,545
	361			613			1,708			117			535
	31,263			29,275			74,550			22,650			22,600
	9,692			67,472			29,579			25,064			46,340
	45,500			43,799			51,500			37,502			39,000
	16,186			21,520			38,014			3,242			15,835
	19,302			17,774			56,476			2,504			10,963
	27,136			60,764			59,698			13,628			46,245
	3,806,371			4,158,903			10,654,152			719,633			2,742,396
	—			(150,852	)		—			(12,696	)		—
	(10,305	)		(4,711	)		(17,854	)		(1,259	)		(1,847	)
	3,796,066			4,003,340			10,636,298			705,678			2,740,549
	4,156,417			(1,166,625	)		10,472,305			(53,294	)		(712,771	)
	13,687,543			22,930,720			68,913,236			2,681,914			11,321,391
	108,844			—			—			(203,063	)		—
	—			—			—			(1,838,816	)		—
	—			(16,196	)		—			(4,343	)		(91,953	)
	13,796,387			22,914,524			68,913,236			635,692			11,229,438
	(5,364,937	)		13,975,357			(20,039,570	)		1,100,740			(2,450,675	)
	(12,463	)		—			—			202,802			—
	—			—			—			1,355,640			—
	—			17,537			—			(2,148	)		10,536
	(5,377,400	)		13,992,894			(20,039,570	)		2,657,034			(2,440,139	)
	8,418,987			36,907,418			48,873,666			3,292,726			8,789,299
$	12,575,404		$	35,740,793		$	59,345,971		$	3,239,432		$	8,076,528

219

Statements of Operations

FIRST INVESTORS EQUITY FUNDS

Six Months Ended March 31, 2018

	LONG SHORT
Investment Income
Dividends	$	350,780
Interest		18,599
Total income		369,379
Expenses (Notes 1 and 3):
Advisory fees		399,965
Distribution plan expenses-Class A		15,708
Distribution plan expenses-Class B		N/A
Shareholder servicing costs-Class A		10,968
Shareholder servicing costs-Class B		N/A
Shareholder servicing costs-Advisor Class		30,135
Shareholder servicing costs-Institutional Class		39
Professional fees		13,100
Custodian fees		8,488
Registration fees		43,501
Reports to shareholders		5,279
Trustees’ fees		1,627
Divdend expense		270,316
Other expenses		7,255
Total expenses		806,381
Less: Expenses (waived and/or assumed) repaid to adviser (Note 3)		(35,040	)
Expenses paid indirectly (Note 1G)		(579	)
Net expenses		770,762
Net investment income (loss)		(401,383	)
Realized and Unrealized Gain (Loss) on Investments (Note 2):
Net realized gain (loss) on investments		(1,166,261	)
Net unrealized appreciation (depreciation) of investments		666,700
Net gain (loss) on investments		(499,561	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(900,944	)

(f)	Net of $7,234 foreign taxes withheld
(g)	Net of $16,729 foreign taxes withheld

See notes to financial statements

220

OPPORTUNITY			REAL ESTATE			SELECT GROWTH			SPECIAL SITUATIONS			TOTAL RETURN
$	7,802,378	(f)	$	2,238,635		$	3,383,136		$	4,320,862		$	6,230,079	(g)
	111,072			—			39,202			76,224			5,391,821
	7,913,450			2,238,635			3,422,338			4,397,086			11,621,900
	3,960,902			459,059			2,121,793			2,786,812			3,212,537
	1,543,817			61,046			719,651			848,095			1,327,998
	36,218			N/A			16,062			14,674			33,897
	832,404			52,476			343,984			450,500			558,012
	7,705			N/A			3,300			3,436			6,235
	75,874			67,949			26,735			84,691			418
	897			86			858			1,347			5,165
	48,134			12,699			26,166			30,139			48,548
	18,935			4,329			8,261			11,821			14,296
	55,501			42,500			44,499			42,501			45,197
	35,023			5,707			17,751			26,349			21,908
	33,032			3,579			16,674			20,660			27,383
	—			—			—			—			—
	29,723			9,345			19,442			24,803			40,136
	6,678,165			718,775			3,365,176			4,345,828			5,341,730
	—			35,025			—			—			—
	(15,120	)		(1,824	)		(6,812	)		(11,127	)		(11,533	)
	6,663,045			751,976			3,358,364			4,334,701			5,330,197
	1,250,405			1,486,659			63,974			62,385			6,291,703
	41,397,701			(876,166	)		2,065,357			61,378,034			18,592,484
	(17,271,509	)		(4,880,648	)		40,804,682			(47,636,259	)		(12,459,801	)
	24,126,192			(5,756,814	)		42,870,039			13,741,775			6,132,683
$	25,376,597		$	(4,270,155	)	$	42,934,013		$	13,804,160		$	12,424,386

221

Statements of Changes in Net Assets

FIRST INVESTORS INCOME FUNDS

	BALANCED INCOME
	10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
Increase (Decrease) in Net Assets From Operations
Net investment income	$	510,652		$	714,212
Net realized gain (loss) on investments and futures contracts		405,303			537,846
Net unrealized appreciation (depreciation) of investments and futures contracts		(885,263	)		967,240
Net increase (decrease) in net assets resulting from operations		30,692			2,219,298
Distribution to Shareholders
Net investment income-Class A		(574,643	)		(867,757	)
Net investment income-Class B		N/A			N/A
Net investment income-Advisor Class		(227	)		(1,558	)
Net investment income-Institutional Class		(2,130	)		(4,535	)
Net realized gains-Class A		(507,295	)		(33,013	)
Net realized gains-Class B		N/A			N/A
Net realized gains-Advisor Class		(113	)		(95	)
Net realized gains-Institutional Class		(1,558	)		(197	)
Total distributions		(1,085,966	)		(907,155	)
Share Transactions
Class A:
Proceeds from shares sold		10,822,231			23,655,494
Reinvestment of distributions		1,062,887			877,264
Cost of shares redeemed		(3,904,556	)		(8,907,180	)
		7,980,562			15,625,578
Class B:
Proceeds from shares sold		N/A			N/A
Reinvestment of distributions		N/A			N/A
Cost of shares redeemed		N/A			N/A
		N/A			N/A
Advisor Class:
Proceeds from shares sold		70,000			—
Reinvestment of distributions		317			1,653
Cost of shares redeemed		(30,578	)		(99,978	)
		39,739			(98,325	)
Institutional Class:
Proceeds from shares sold		52,922			157,282
Reinvestment of distributions		3,688			4,689
Cost of shares redeemed		(19,723	)		(182,559	)
		36,887			(20,588	)
Net increase (decrease) from share transactions		8,057,188			15,506,665
Net increase (decrease) in net assets		7,001,914			16,818,808
Net Assets
Beginning of year		46,760,250			29,941,442
End of year+	$	53,762,164		$	46,760,250
+Includes undistributed net investment income (deficit) of	$	(93,223	)	$	(26,875	)

See notes to financial statements

222

FLOATING RATE						FUND FOR INCOME						GOVERNMENT
10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
$	3,079,650		$	4,877,492		$	16,569,636		$	32,364,116		$	2,130,507		$	4,224,031
	106,864			506,695			5,154,064			14,665,726			(486,615	)		(2,591,182	)
	154,876			191,917			(26,331,735	)		1,058,678			(5,224,622	)		(7,974,036	)
	3,341,390			5,576,104			(4,608,035	)		48,088,520			(3,580,730	)		(6,341,187	)
	(1,042,306	)		(2,083,709	)		(13,960,415	)		(28,276,744	)		(2,220,450	)		(4,643,274	)
	N/A			N/A			(44,747	)		(104,124	)		(4,204	)		(15,507	)
	(1,821,865	)		(2,514,716	)		(2,091,863	)		(3,365,654	)		(393,932	)		(1,155,252	)
	(401,684	)		(695,405	)		(1,743,261	)		(3,563,174	)		(9,438	)		(110,625	)
	—			—			—			—			—			—
	N/A			N/A			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	(3,265,855	)		(5,293,830	)		(17,840,286	)		(35,309,696	)		(2,628,024	)		(5,924,658	)
	6,382,308			19,572,438			19,621,773			48,739,034			10,968,755			30,162,048
	995,131			1,995,483			12,081,090			24,445,941			2,119,098			4,414,386
	(9,375,041	)		(16,136,415	)		(47,130,168	)		(81,958,579	)		(25,409,291	)		(50,584,990	)
	(1,997,602	)		5,431,506			(15,427,305	)		(8,773,604	)		(12,321,438	)		(16,008,556	)
	N/A			N/A			83,135			107,501			18,530			180,893
	N/A			N/A			35,587			83,643			4,149			15,070
	N/A			N/A			(452,744	)		(799,349	)		(368,471	)		(1,137,367	)
	N/A			N/A			(334,022	)		(608,205	)		(345,792	)		(941,404	)
	22,439,822			44,356,222			17,052,589			21,499,769			7,293,559			18,019,685
	1,718,304			2,506,209			1,964,429			3,331,094			363,576			1,145,374
	(5,205,804	)		(9,907,811	)		(4,064,250	)		(20,618,681	)		(2,009,757	)		(48,045,052	)
	18,952,322			36,954,620			14,952,768			4,212,182			5,647,378			(28,879,993	)
	4,266,387			13,827,603			831,961			37,313,292			8,132,450			15,534,065
	14,202			24,082			173,832			170,801			6,421			12,625
	(104,001	)		(4,060,363	)		(26,047,135	)		(22,408,501	)		(21,815	)		(22,925,163	)
	4,176,588			9,791,322			(25,041,342	)		15,075,592			8,117,056			(7,378,473	)
	21,131,308			52,177,448			(25,849,901	)		9,905,965			1,097,204			(53,208,426	)
	21,206,843			52,459,722			(48,298,222	)		22,684,789			(5,111,550	)		(65,474,271	)
	187,003,614			134,543,892			727,173,874			704,489,085			267,452,986			332,927,257
$	208,210,457		$	187,003,614		$	678,875,652		$	727,173,874		$	262,341,436		$	267,452,986
$	(349,997	)	$	(163,792	)	$	(3,853,910	)	$	(2,583,260	)	$	(489,127	)	$	8,390

223

Statements of Changes in Net Assets

FIRST INVESTORS INCOME FUNDS

	BALANCED INCOME
	10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
Shares Issued and Redeemed
Class A:
Sold		975,508			2,211,121
Issued for distributions reinvested		95,591			81,486
Redeemed		(352,959	)		(827,142	)
Net increase (decrease) in Class A shares outstanding		718,140			1,465,465
Class B:
Sold		N/A			N/A
Issued for distributions reinvested		N/A			N/A
Redeemed		N/A			N/A
Net decrease in Class B shares outstanding		N/A			N/A
Advisor Class:
Sold		6,372			—
Issued for distributions reinvested		29			154
Redeemed		(2,808	)		(9,300	)
Net increase (decrease) in Advisor Class shares outstanding		3,593			(9,146	)
Institutional Class:
Sold		4,767			14,709
Issued for distributions reinvested		330			436
Redeemed		(1,780	)		(16,981	)
Net increase (decrease) in Institutional Class shares outstanding		3,317			(1,836	)

See notes to financial statements

224

FLOATING RATE						FUND FOR INCOME						GOVERNMENT
10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
	659,128			2,022,863			7,844,352			19,557,429			1,062,474			2,866,271
	102,788			206,256			4,848,719			9,789,318			205,931			420,873
	(968,378	)		(1,668,028	)		(18,868,833	)		(32,899,756	)		(2,467,192	)		(4,807,201	)
	(206,462	)		561,091			(6,175,762	)		(3,553,009	)		(1,198,787	)		(1,520,057	)
	N/A			N/A			33,199			43,176			1,800			16,975
	N/A			N/A			14,240			33,479			404			1,439
	N/A			N/A			(180,442	)		(324,958	)		(35,558	)		(108,761	)
	N/A			N/A			(133,003	)		(248,303	)		(33,354	)		(90,347	)
	2,316,313			4,584,134			6,834,416			8,615,120			706,703			1,712,468
	177,307			259,046			789,062			1,334,256			35,329			108,989
	(537,330	)		(1,024,184	)		(1,629,056	)		(8,402,016	)		(194,709	)		(4,598,626	)
	1,956,290			3,818,996			5,994,422			1,547,360			547,323			(2,777,169	)
	439,084			1,430,225			330,354			14,940,723			794,917			1,475,253
	1,467			2,492			68,984			68,143			620			1,195
	(10,736	)		(420,736	)		(10,400,451	)		(9,005,052	)		(2,096	)		(2,154,908	)
	429,815			1,011,981			(10,001,113	)		6,003,814			793,441			(678,460	)

225

Statements of Changes in Net Assets

FIRST INVESTORS INCOME FUNDS

	GOVERNMENT CASH MANAGEMENT
	10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
Increase (Decrease) in Net Assets From Operations
Net investment income	$	424,562		$	100,143
Net realized gain (loss) on investments and foreign currency transactions		—			—
Net unrealized appreciation (depreciation) of investments and foreign currency transactions		—			—
Net increase (decrease) in net assets resulting from operations		424,562			100,143
Dividends to Shareholders
Net investment income-Class A		(416,789	)		(98,406	)
Net investment income-Class B		—			—
Net investment income-Advisor Class		N/A			N/A
Net investment income-Institutional Class		(7,773	)		(1,737	)
Total dividends		(424,562	)		(100,143	)
Share Transactions
Class A:
Proceeds from shares sold		129,960,868			237,067,138
Reinvestment of dividends		403,685			94,891
Cost of shares redeemed		(125,781,847	)		(232,120,074	)
		4,582,706			5,041,955
Class B:
Proceeds from shares sold		49,666			234,482
Reinvestment of dividends		—			—
Cost of shares redeemed		(29,424	)		(321,734	)
		20,242			(87,252	)
Advisor Class:
Proceeds from shares sold		N/A			N/A
Reinvestment of dividends		N/A			N/A
Cost of shares redeemed		N/A			N/A
		N/A			N/A
Institutional Class:
Proceeds from shares sold		957,823			981,622
Reinvestment of dividends		7,773			1,737
Cost of shares redeemed		(1,007,644	)		(1,432,697	)
		(42,048	)		(449,338	)
Net increase (decrease) from share transactions		4,560,900			4,505,365
Net increase (decrease) in net assets		4,560,900			4,505,365
Net Assets
Beginning of year		129,634,688			125,129,323
End of year+	$	134,195,588		$	129,634,688
+Includes undistributed net investment income (deficit) of	$	—		$	—

See notes to financial statements

226

INTERNATIONAL OPPORTUNITIES BOND						INVESTMENT GRADE						LIMITED DURATION BOND
10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
$	1,955,772		$	3,151,702		$	8,648,174		$	16,586,332		$	924,921		$	1,329,506
	2,628,294			1,976,439			1,559,932			2,274,276			(631,204	)		(152,663	)
	1,161,752			1,277,498			(19,322,365	)		(11,799,740	)		(1,831,898	)		(639,208	)
	5,745,818			6,405,639			(9,114,259	)		7,060,868			(1,538,181	)		537,635
	(1,886,224	)		(949,007	)		(7,791,999	)		(15,914,378	)		(763,782	)		(1,275,364	)
	N/A			N/A			(23,968	)		(60,406	)		N/A			N/A
	(2,402,791	)		(1,108,952	)		(2,733,225	)		(3,815,384	)		(443,620	)		(1,124,965	)
	(271,216	)		(170,411	)		(473,826	)		(1,164,966	)		(487,990	)		(668,870	)
	(4,560,231	)		(2,228,370	)		(11,023,018	)		(20,955,134	)		(1,695,392	)		(3,069,199	)
	6,172,869			6,893,066			25,044,166			61,465,866			8,912,519			28,509,300
	1,808,009			912,178			7,321,118			14,913,130			745,792			1,246,526
	(6,155,004	)		(15,017,955	)		(43,851,418	)		(78,881,456	)		(9,562,760	)		(14,203,767	)
	1,825,874			(7,212,711	)		(11,486,134	)		(2,502,460	)		95,551			15,552,059
	N/A			N/A			155,254			401,194			N/A			N/A
	N/A			N/A			23,370			58,469			N/A			N/A
	N/A			N/A			(566,202	)		(1,116,565	)		N/A			N/A
	N/A			N/A			(387,578	)		(656,902	)		N/A			N/A
	16,258,543			23,297,688			29,322,191			62,781,202			5,577,807			13,309,489
	1,992,072			1,107,823			2,518,164			3,804,200			416,443			1,109,557	��
	(3,882,350	)		(9,400,690	)		(6,653,686	)		(12,364,180	)		(2,488,745	)		(32,421,165	)
	14,368,265			15,004,821			25,186,669			54,221,222			3,505,505			(18,002,119	)
	272,665			4,726,374			4,454,244			2,672,181			5,909,314			19,542,286
	20,279			12,245			34,720			67,704			2,431			5,615
	(96,537	)		(4,589,624	)		(3,975,594	)		(7,256,733	)		(13,612,435	)		(305,440	)
	196,407			148,995			513,370			(4,516,848	)		(7,700,690	)		19,242,461
	16,390,546			7,941,105			13,826,327			46,545,012			(4,099,634	)		16,792,401
	17,576,133			12,118,374			(6,310,950	)		32,650,746			(7,333,207	)		14,260,837
	136,612,464			124,494,090			627,621,819			594,971,073			135,544,173			121,283,336
$	154,188,597		$	136,612,464		$	621,310,869		$	627,621,819		$	128,210,966		$	135,544,173
$	(20,018	)	$	2,584,441		$	(14,760,701	)	$	(12,385,857	)	$	(2,962,907	)	$	(2,192,436	)

227

Statements of Changes in Net Assets

FIRST INVESTORS INCOME FUNDS

	GOVERNMENT CASH MANAGEMENT
	10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
Shares Issued and Redeemed
Class A:
Sold		129,960,868			237,067,138
Issued for dividends reinvested		403,685			94,891
Redeemed		(125,781,847	)		(232,120,074	)
Net increase (decrease) in Class A shares outstanding		4,582,706			5,041,955
Class B:
Sold		49,666			234,482
Issued for dividends reinvested		—			—
Redeemed		(29,424	)		(321,734	)
Net increase (decrease) in Class B shares outstanding		20,242			(87,252	)
Advisor Class:
Sold		N/A			N/A
Issued for dividends reinvested		N/A			N/A
Redeemed		N/A			N/A
Net increase (decrease) in Advisor Class shares outstanding		N/A			N/A
Institutional Class:
Sold		957,823			981,622
Issued for dividends reinvested		7,773			1,737
Redeemed		(1,007,644	)		(1,432,697	)
Net increase (decrease) in Institutional Class shares outstanding		(42,048	)		(449,338	)

See notes to financial statements

228

INTERNATIONAL OPPORTUNITIES BOND						INVESTMENT GRADE						LIMITED DURATION BOND
10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
	653,592			755,813			2,622,304			6,384,045			953,624			2,993,642
	194,863			96,323			768,627			1,548,716			79,827			131,129
	(651,830	)		(1,658,321	)		(4,598,322	)		(8,193,164	)		(1,023,176	)		(1,493,876	)
	196,625			(806,185	)		(1,207,391	)		(260,403	)		10,275			1,630,895
	N/A			N/A			16,370			41,679			N/A			N/A
	N/A			N/A			2,464			6,110			N/A			N/A
	N/A			N/A			(59,437	)		(116,646	)		N/A			N/A
	N/A			N/A			(40,603	)		(68,857	)		N/A			N/A
	1,707,546			2,556,618			3,056,393			6,505,014			594,789			1,394,264
	212,335			116,124			263,226			392,866			44,490			116,326
	(407,461	)		(1,024,846	)		(694,003	)		(1,278,296	)		(264,851	)		(3,404,372	)
	1,512,420			1,647,896			2,625,616			5,619,584			374,428			(1,893,782	)
	28,573			524,480			462,600			277,663			636,069			2,049,150
	2,165			1,279			3,635			7,013			259			588
	(10,198	)		(513,536	)		(412,070	)		(750,208	)		(1,445,202	)		(31,987	)
	20,540			12,223			54,165			(465,532	)		(808,874	)		2,017,751

229

Statements of Changes in Net Assets

FIRST INVESTORS INCOME FUNDS

	STRATEGIC INCOME
	10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
Increase (Decrease) in Net Assets From Operations
Net investment income	$	2,827,428		$	5,095,776
Net realized loss on investments, affiliate and options contracts (Note 2)		(14,328	)		(243,666	)
Capital gain distributions from affiliate (Note 2)		—			77,283
Net unrealized appreciation (depreciation) of investments and affiliate (Note 2)		(3,570,662	)		958,049
Net increase (decrease) in net assets resulting from operations		(757,562	)		5,887,442
Dividends to Shareholders
Net investment income-Class A		(2,936,233	)		(4,937,441	)
Net investment income-Class B		N/A			N/A
Net investment income-Advisor Class		(15,387	)		(24,178	)
Net investment income-Institutional Class		N/A			N/A
Total dividends		(2,951,620	)		(4,961,619	)
Share Transactions
Class A:
Proceeds from shares sold		13,721,825			34,639,076
Reinvestment of dividends		2,816,327			4,732,036
Cost of shares redeemed		(14,793,965	)		(26,691,084	)
		1,744,187			12,680,028
Class B:
Proceeds from shares sold		N/A			N/A
Reinvestment of dividends		N/A			N/A
Cost of shares redeemed		N/A			N/A
		N/A			N/A
Advisor Class:
Proceeds from shares sold		108,217			673,565
Reinvestment of dividends		14,575			18,696
Cost of shares redeemed		(314,470	)		(151,144	)
		(191,678	)		541,117
Institutional Class:
Proceeds from shares sold		N/A			N/A
Reinvestment of dividends		N/A			N/A
Cost of shares redeemed		N/A			N/A
		N/A			N/A
Net increase from share transactions		1,552,509			13,221,145
Net increase (decrease) in net assets		(2,156,673	)		14,146,968
Net Assets
Beginning of year		163,751,992			149,605,024
End of year+	$	161,595,319		$	163,751,992
+Includes undistributed net investment income of	$	56,751		$	180,943

See notes to financial statements

230

	STRATEGIC INCOME
	10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
Shares Issued and Redeemed
Class A:
Sold		1,453,149			3,665,904
Issued for dividends reinvested		298,342			499,484
Redeemed		(1,567,079	)		(2,820,332	)
Net increase in Class A shares outstanding		184,412			1,345,056
Class B:
Sold		N/A			N/A
Issued for dividends reinvested		N/A			N/A
Redeemed		N/A			N/A
Net increase in Class B shares outstanding		N/A			N/A
Advisor Class:
Sold		11,448			71,470
Issued for dividends reinvested		1,546			1,974
Redeemed		(33,100	)		(16,057	)
Net increase (decrease) in Advisor Class shares outstanding		(20,106	)		57,387
Institutional Class:
Sold		N/A			N/A
Issued for dividends reinvested		N/A			N/A
Redeemed		N/A			N/A
Net increase in Institutional Class shares outstanding		N/A			N/A

231

Statements of Changes in Net Assets

FIRST INVESTORS EQUITY FUNDS

	COVERED CALL STRATEGY
	10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
Increase (Decrease) in Net Assets From Operations
Net investment income (deficit)	$	1,771,551		$	2,633,458
Net realized gain (loss) on investments, options contracts and foreign currency transactions		(16,424,143	)		(637,556	)
Net unrealized appreciation (depreciation) of investments, options contracts, and foreign currency transactions		13,257,668			15,531,537
Net increase (decrease) in net assets resulting from operations		(1,394,924	)		17,527,439
Distributions to Shareholders
Net investment income-Class A		(877,972	)		(1,362,794	)
Net investment income-Class B		N/A			N/A
Net investment income-Advisor Class		(860,919	)		(1,157,434	)
Net investment income-Institutional Class		(50,459	)		(97,118	)
Net realized gains-Class A		—			(139,400	)
Net realized gains-Class B		N/A			N/A
Net realized gains-Advisor Class		—			(90,537	)
Net realized gains-Institutional Class		—			(7,569	)
Total distributions		(1,789,350	)		(2,854,852	)
Share Transactions
Class A:
Proceeds from shares sold		51,359,188			120,901,915
Reinvestment of distributions		863,808			1,481,088
Cost of shares redeemed		(13,769,960	)		(12,548,151	)
		38,453,036			109,834,852
Class B:
Proceeds from shares sold		N/A			N/A
Reinvestment of distributions		N/A			N/A
Cost of shares redeemed		N/A			N/A
		N/A			N/A
Advisor Class:
Proceeds from shares sold		56,742,904			76,007,680
Reinvestment of distributions		761,294			1,187,791
Cost of shares redeemed		(10,262,410	)		(12,464,429	)
		47,241,788			64,731,042
Institutional Class:
Proceeds from shares sold		4,224,698			2,958,902
Reinvestment of distributions		33,702			26,464
Cost of shares redeemed		(9,074,689	)		(291,292	)
		(4,816,289	)		2,694,074
Net increase (decrease) from share transactions		80,878,535			177,259,968
Net increase (decrease) in net assets		77,694,261			191,932,555
Net Assets
Beginning of year		283,789,907			91,857,352
End of year+	$	361,484,168		$	283,789,907
+Includes undistributed net investment income (deficit) of	$	13,924		$	31,723

See notes to financial statements

232

EQUITY INCOME						GLOBAL						GROWTH & INCOME
10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
$	4,156,417		$	9,990,134		$	(1,166,625	)	$	2,340,520		$	10,472,305		$	20,740,825
	13,796,387			18,636,854			22,914,524			57,332,738			68,913,236			79,625,849
	(5,377,400	)		54,893,753			13,992,894			32,286,780			(20,039,570	)		135,711,245
	12,575,404			83,520,741			35,740,793			91,960,038			59,345,971			236,077,919
	(3,997,543	)		(11,273,714	)		(1,904,849	)		(511,315	)		(12,971,255	)		(26,399,032	)
	(10,025	)		(36,046	)		(11,556	)		(608	)		(31,767	)		(106,278	)
	(669,801	)		(1,323,504	)		(1,156,269	)		(438,669	)		(1,644,819	)		(3,214,231	)
	(20,799	)		(92,288	)		(22,952	)		(8,341	)		(107,713	)		(211,869	)
	(18,700,796	)		(9,458,693	)		(27,517,933	)		—			(66,425,749	)		(54,318,955	)
	(94,816	)		(60,661	)		(225,878	)		—		��	(577,823	)		(594,347	)
	(2,533,033	)		(1,034,281	)		(14,205,335	)		—			(6,908,711	)		(4,880,138	)
	(76,275	)		(114,200	)		(273,391	)		—			(435,766	)		(354,035	)
	(26,103,088	)		(23,393,387	)		(45,318,163	)		(958,933	)		(89,103,603	)		(90,078,885	)
	23,994,225			59,467,706			17,303,130			30,039,159			57,517,361			134,434,194
	22,430,185			20,445,699			29,037,446			503,982			78,761,290			80,062,251
	(54,332,462	)		(97,241,265	)		(29,276,254	)		(49,742,939	)		(144,839,997	)		(259,016,736	)
	(7,908,052	)		(17,327,860	)		17,064,322			(19,199,798	)		(8,561,346	)		(44,520,291	)
	99,652			388,601			137,897			264,229			587,137			1,251,634
	104,659			96,533			237,434			608			607,232			698,021
	(562,328	)		(1,230,597	)		(473,452	)		(990,232	)		(2,712,728	)		(5,872,934	)
	(358,017	)		(745,463	)		(98,121	)		(725,395	)		(1,518,359	)		(3,923,279	)
	17,323,425			26,199,816			36,371,638			56,793,376			29,859,070			59,881,381
	2,534,279			2,338,792			14,647,751			436,620			8,051,889			8,040,009
	(6,483,233	)		(17,859,121	)		(17,495,375	)		(66,051,439	)		(16,961,897	)		(45,818,902	)
	13,374,471			10,679,487			33,524,014			(8,821,443	)		20,949,062			22,102,488
	1,119,022			4,873,757			296,525			483,915			521,410			954,437
	97,074			109,108			296,343			8,341			543,479			565,904
	(923,133	)		(5,789,919	)		(130,141	)		(558,623	)		(516,527	)		(2,140,286	)
	292,963			(807,054	)		462,727			(66,367	)		548,362			(619,945	)
	5,401,365			(8,200,890	)		50,952,942			(28,813,003	)		11,417,719			(26,961,027	)
	(8,126,319	)		51,926,464			41,375,572			62,188,102			(18,339,913	)		119,038,007
	641,734,793			589,808,329			577,457,091			515,268,989			1,867,590,561			1,748,552,554
$	633,608,474		$	641,734,793		$	618,832,663		$	577,457,091		$	1,849,250,648		$	1,867,590,561
$	(541,751	)	$	—		$	(2,300,811	)	$	1,961,440		$	93,322		$	4,376,571

233

Statements of Changes in Net Assets

FIRST INVESTORS EQUITY FUNDS

	COVERED CALL STRATEGY
	10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
Shares Issued and Redeemed
Class A:
Sold		4,497,252			11,272,774
Issued for distributions reinvested		76,637			135,329
Redeemed		(1,207,160	)		(1,151,656	)
Net increase (decrease) in Class A shares outstanding		3,366,729			10,256,447
Class B:
Sold		N/A			N/A
Issued for distributions reinvested		N/A			N/A
Redeemed		N/A			N/A
Net decrease in Class B shares outstanding		N/A			N/A
Advisor Class
Sold		4,972,563			7,060,934
Issued for distributions reinvested		67,978			109,184
Redeemed		(897,451	)		(1,152,999	)
Net increase (decrease) in Advisor Class shares outstanding		4,143,090			6,017,119
Institutional Class:
Sold		363,281			274,157
Issued for distributions reinvested		3,056			2,423
Redeemed		(806,079	)		(27,013	)
Net increase (decrease) in Institutional Class shares outstanding		(439,742	)		249,567

See notes to financial statements

234

EQUITY INCOME						GLOBAL						GROWTH & INCOME
10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
	2,198,350			5,839,599			1,972,786			3,825,654			2,400,350			6,090,140
	2,068,203			2,010,968			3,469,229			68,944			3,310,003			3,713,906
	(4,975,843	)		(9,559,888	)		(3,344,453	)		(6,357,116	)		(6,047,106	)		(11,744,645	)
	(709,290	)		(1,709,321	)		2,097,562			(2,462,518	)		(336,753	)		(1,940,599	)
	9,332			39,050			20,255			42,603			26,455			61,214
	9,833			9,780			36,529			104			27,487			35,415
	(52,699	)		(123,729	)		(69,258	)		(159,084	)		(122,690	)		(288,223	)
	(33,534	)		(74,899	)		(12,474	)		(116,377	)		(68,748	)		(191,594	)
	1,582,432			2,551,165			4,062,637			7,098,039			1,238,015			2,680,319
	232,692			229,751			1,711,186			58,764			336,354			367,930
	(589,457	)		(1,735,500	)		(1,939,854	)		(8,060,119	)		(699,695	)		(2,050,426	)
	1,225,667			1,045,416			3,833,969			(903,316	)		874,674			997,823
	103,023			506,702			32,974			59,751			21,614			43,161
	8,944			10,632			34,458			1,117			22,766			26,082
	(88,624	)		(563,132	)		(14,445	)		(70,450	)		(21,429	)		(96,837	)
	23,343			(45,798	)		52,987			(9,582	)		22,951			(27,594	)

235

Statements of Changes in Net Assets

FIRST INVESTORS EQUITY FUNDS

	HEDGED U.S. EQUITY OPPORTUNITIES
	10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
Increase (Decrease) in Net Assets From Operations
Net investment income (loss)	$	(53,294	)	$	(36,121	)
Net realized gain (loss) on investments, options and futures contracts, and foreign currency transactions		635,692			(1,621,396	)
Net unrealized appreciation (depreciation) of investments, options and futures contracts, and foreign currency transactions		2,657,034			7,333,832
Net increase (decrease) in net assets resulting from operations		3,239,432			5,676,315
Distribution to Shareholders
Net investment income-Class A		—			—
Net investment income-Class B		N/A			N/A
Net investment income-Advisor Class		—			(6,858	)
Net investment income-Institutional Class		—			(21	)
Net realized gains-Class A		—			—
Net realized gains-Class B		N/A			N/A
Net realized gains-Advisor Class		—			—
Net realized gains-Institutional Class		—			—
Total distributions		—			(6.879	)
Share Transactions
Class A:
Proceeds from shares sold		10,576,814			35,240,953
Reinvestment of distributions		—			—
Cost of shares redeemed		(4,079,172	)		(3,201,304	)
		6,497,642			32,039,649
Class B:
Proceeds from shares sold		N/A			N/A
Reinvestment of distributions		N/A			N/A
Cost of shares redeemed		N/A			N/A
		N/A			N/A
Advisor Class:
Proceeds from shares sold		8,107,265			15,554,353
Reinvestment of distributions		—			6,857
Cost of shares redeemed		(6,637,019	)		(9,051,079	)
		1,470,246			6,510,131
Institutional Class:
Proceeds from shares sold		99,345			387,153
Reinvestment of distributions		—			22
Cost of shares redeemed		(188,344	)		(39,925	)
		(88,999	)		347,250
Net increase from share transactions		7,878,889			38,897,030
Net increase in net assets		11,118,321			44,566,466
Net Assets
Beginning of year		78,469,756			33,903,290
End of year+	$	89,588,077		$	78,469,756
+Includes undistributed net investment income (deficit) of	$	(105,025	)	$	(51,731	)

* From December 1, 2016 (commencement of operations) to September 30, 2017.

See notes to financial statements

236

INTERNATIONAL						LONG SHORT						OPPORTUNITY
10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			12/1/2016 to 9/30/2017*			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
$	(712,771	)	$	915,117		$	(401,383	)	$	(369,475	)	$	1,250,405		$	2,998,302
	11,229,438			18,653,171			(1,166,261	)		(1,552,452	)		41,397,701			58,838,680
	(2,440,139	)		26,399,299			666,700			2,534,539			(17,271,509	)		99,884,040
	8,076,528			45,967,587			(900,944	)		612,612			25,376,597			161,721,022
	(275,588	)		(1,018,350	)		—			—			(2,804,178	)		(5,116,339	)
	—			(5,219	)		N/A			N/A			(14,369	)		(47,551	)
	(239,073	)		(498,093	)		—			—			(288,632	)		(497,612	)
	(7,737	)		(15,915	)		—			—			(22,342	)		(34,340	)
	—			—			—			—			(56,621,327	)		(31,438,505	)
	—			—			N/A			N/A			(518,174	)		(364,203	)
	—			—			—			—			(4,684,317	)		(2,762,934	)
	—			—			—			—			(323,573	)		(178,958	)
	(522,398	)		(1,537,577	)		—			—			(65,276,912	)		(40,440,442	)
	29,798,885			33,297,820			4,161,761			10,941,882			55,148,671			117,186,485
	273,396			1,009,767			—			—			59,060,707			36,264,899
	(19,143,174	)		(34,179,761	)		(1,472,166	)		(400,013	)		(78,107,156	)		(141,149,197	)
	10,929,107			127,826			2,689,595			10,541,869			36,102,222			12,302,187
	90,112			226,279			N/A			N/A			302,961			723,577
	—			5,219			N/A			N/A			530,291			407,984
	(237,858	)		(541,783	)		N/A			N/A			(1,287,584	)		(2,946,112	)
	(147,746	)		(310,285	)		N/A			N/A			(454,332	)		(1,814,551	)
	25,378,954			35,045,544			10,013,058			40,714,739			14,173,575			27,637,225
	222,902			494,244			—			—			4,553,410			3,240,840
	(9,324,202	)		(20,173,738	)		(6,891,011	)		(1,132,783	)		(7,339,925	)		(32,403,469	)
	16,277,654			15,366,050			3,122,047			39,581,956			11,387,060			(1,525,404	)
	536,974			677,943			55,714			166,014			577,964			917,940
	7,737			15,915			—			—			345,915			213,296
	(349,022	)		(496,317	)		(110,156	)		—			(538,213	)		(1,078,669	)
	195,689			197,541			(54,442	)		166,014			385,666			52,567
	27,254,704			15,381,132			5,757,200			50,289,839			47,420,616			9,014,799
	34,808,834			59,811,142			4,856,256			50,902,451			7,520,301			130,295,379
	354,842,920			295,031,778			50,902,451			—			1,097,626,103			967,330,724
$	389,651,754		$	354,842,920		$	55,758,707		$	50,902,451		$	1,105,146,404		$	1,097,626,103
$	(712,815	)	$	522,354		$	(401,383	)	$	—		$	544,614		$	2,423,730

237

Statements of Changes in Net Assets

FIRST INVESTORS EQUITY FUNDS

	HEDGED U.S. EQUITY OPPORTUNITIES
	10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
Shares Issued and Redeemed
Class A:
Sold		948,686			3,477,221
Issued for distributions reinvested		—			—
Redeemed		(364,078	)		(306,330	)
Net increase (decrease) in Class A shares outstanding		584,608			3,170,891
Class B:
Sold		N/A			N/A
Issued for distributions reinvested		N/A			N/A
Redeemed		N/A			N/A
Net decrease in Class B shares outstanding		N/A			N/A
Advisor Class:
Sold		723,262			1,514,819
Issued for distributions reinvested		—			687
Redeemed		(589,938	)		(866,689	)
Net increase (decrease) in Advisor Class shares outstanding		133,324			648,817
Institutional Class:
Sold		8,874			37,331
Issued for distributions reinvested		—			2
Redeemed		(16,661	)		(3,742	)
Net increase (decrease) in Institutional Class shares outstanding		(7,787	)		33,591

* From December 1, 2016 (commencement of operations) to September 30, 2017.

See notes to financial statements

238

INTERNATIONAL						LONG SHORT							OPPORTUNITY
10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			12/1/2016 to 9/30/2017*				10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
	1,835,582			2,349,634			395,913			1,063,585		��		1,309,415			3,018,607
	16,773			81,828			—			—				1,413,612			972,249
	(1,178,946	)		(2,465,649	)		(140,986	)		(38,505	)			(1,856,434	)		(3,647,153	)
	673,409			(34,187	)		254,927			1,025,080				866,593			343,703
	5,983			16,786			N/A			N/A				9,272			23,735
	—			451			N/A			N/A				16,499			13,901
	(15,883	)		(41,880	)		N/A			N/A				(39,457	)		(96,871	)
	(9,900	)		(24,643	)		N/A			N/A				(13,686	)		(59,235	)
	1,540,789			2,454,155			951,159			3,935,899				331,044			701,161
	13,468			39,571			—			—				107,063			85,668
	(564,179	)		(1,377,242	)		(664,868	)		(108,648	)			(170,052	)		(809,965	)
	990,078			1,116,484			286,291			3,827,251				268,055			(23,136	)
	32,292			47,081			5,340			16,325				13,502			23,312
	466			1,272			—			—				8,149			5,652
	(20,845	)		(37,030	)		(10,658	)		—				(12,468	)		(27,264	)
	11,913			11,323			(5,318	)		16,325				9,183			1,700

239

Statements of Changes in Net Assets

FIRST INVESTORS EQUITY FUNDS

	REAL ESTATE
	10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
Increase (Decrease) in Net Assets From Operations
Net investment income	$	1,486,659		$	1,932,240
Net realized gain (loss) on investments		(876,166	)		877,331
Net unrealized appreciation (depreciation) of investments		(4,880,648	)		(8,194,394	)
Net increase (decrease) in net assets resulting from operations		(4,270,155	)		(5,384,823	)
Distributions to Shareholders
Net investment income-Class A		(470,169	)		(476,967	)
Net investment income-Class B		N/A			N/A
Net investment income-Advisor Class		(1,113,393	)		(1,184,480	)
Net investment income-Institutional Class		(7,077	)		(9,862	)
Net realized gains-Class A		(293,621	)		(483,384	)
Net realized gains-Class B		N/A			N/A
Net realized gains-Advisor Class		(563,523	)		(846,808	)
Net realized gains-Institutional Class		(3,873	)		(6,438	)
Total distributions		(2,451,656	)		(3,007,939	)
Share Transactions
Class A:
Proceeds from shares sold		3,628,953			20,509,861
Reinvestment of distributions		745,573			932,353
Cost of shares redeemed		(4,852,508	)		(5,378,540	)
		(477,982	)		16,063,674
Class B:
Proceeds from shares sold		N/A			N/A
Reinvestment of distributions		N/A			N/A
Cost of shares redeemed		N/A			N/A
		N/A			N/A
Advisor Class:
Proceeds from shares sold		19,269,866			32,609,296
Reinvestment of distributions		1,500,059			2,023,957
Cost of shares redeemed		(8,368,850	)		(6,988,569	)
		12,401,075			27,644,684
Institutional Class:
Proceeds from shares sold		102,398			347,100
Reinvestment of distributions		10,950			16,299
Cost of shares redeemed		(187,051	)		(361,956	)
		(73,703	)		1,443
Net increase (decrease) from share transactions		11,849,390			43,709,801
Net increase (decrease) in net assets		5,127,579			35,317,039
Net Assets
Beginning of year		118,908,586			83,591,547
End of year+	$	124,036,165		$	118,908,586
+Includes undistributed net investment income (deficit) of	$	576,849		$	680,829

See notes to financial statements

240

SELECT GROWTH						SPECIAL SITUATIONS						TOTAL RETURN
10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
$	63,974		$	311,436		$	62,385		$	229,155		$	6,291,703		$	11,119,121
	2,065,357			53,073,004			61,378,034			17,392,867			18,592,484			20,432,642
	40,804,682			52,198,026			(47,636,259	)		92,338,759			(12,459,801	)		38,301,406
	42,934,013			105,582,466			13,804,160			109,960,781			12,424,386			69,853,169
	(239,159	)		(980,941	)		(223,805	)		(2,826,286	)		(7,185,594	)		(14,323,503	)
	—			(4,818	)		—			(19,506	)		(31,366	)		(63,441	)
	(130,189	)		(256,691	)		(152,568	)		(407,771	)		(9,724	)		(20,752	)
	(8,316	)		(14,719	)		(12,819	)		(49,172	)		(346,272	)		(628,895	)
	(39,548,693	)		(50,530,233	)		(15,226,717	)		(4,182,726	)		(15,297,108	)		(13,217,287	)
	(318,093	)		(489,800	)		(105,510	)		(36,300	)		(119,932	)		(120,124	)
	(7,349,893	)		(9,424,580	)		(3,496,476	)		(543,887	)		(17,418	)		(16,705	)
	(445,150	)		(515,355	)		(235,100	)		(63,359	)		(575,977	)		(511,002	)
	(48,039,493	)		(62,217,137	)		(19,452,995	)		(8,129,007	)		(23,583,391	)		(28,901,709	)
	39,832,656			47,219,387			36,109,389			59,202,042			39,384,918			92,125,136
	39,481,516			51,034,443			15,336,562			6,946,846			22,231,945			27,179,030
	(38,921,784	)		(62,537,793	)		(42,560,427	)		(74,959,984	)		(75,501,776	)		(126,717,199	)
	40,392,388			35,716,037			8,885,524			(8,811,096	)		(13,884,913	)		(7,413,033	)
	133,291			273,477			123,091			342,733			278,939			617,192
	310,573			483,108			105,121			55,728			150,974			181,959
	(515,238	)		(1,142,221	)		(510,302	)		(1,111,237	)		(958,957	)		(1,954,537	)
	(71,374	)		(385,636	)		(282,090	)		(712,776	)		(529,044	)		(1,155,386	)
	18,296,924			25,744,123			31,963,266			60,722,551			78,543			502,073
	7,092,254			9,596,890			3,459,240			948,283			23,888			32,818
	(9,120,898	)		(27,553,052	)		(9,265,731	)		(14,035,967	)		(144,015	)		(802,922	)
	16,268,280			7,787,961			26,156,775			47,634,867			(41,584	)		(268,031	)
	1,052,362			895,148			655,655			1,184,681			219,387			447,742
	453,466			530,075			247,919			112,531			922,249			1,139,897
	(279,645	)		(835,332	)		(576,068	)		(848,107	)		(929,533	)		(2,149,845	)
	1,226,183			589,891			327,506			449,105			212,103			(562,206	)
	57,815,477			43,708,253			35,087,715			38,560,100			(14,243,438	)		(9,398,656	)
	52,709,997			87,073,582			29,438,880			140,391,874			(25,402,443	)		31,552,804
	534,249,483			447,175,901			682,485,509			542,093,635			918,790,851			887,238,047
$	586,959,480		$	534,249,483		$	711,924,389		$	682,485,509		$	893,388,408		$	918,790,851
$	(101,112	)	$	212,578		$	(256,733	)	$	70,074		$	(6,999,726	)	$	(5,718,473	)

241

Statements of Changes in Net Assets

FIRST INVESTORS EQUITY FUNDS

	REAL ESTATE
	10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
Shares Issued and Redeemed
Class A:
Sold		392,653			2,145,744
Reinvestment of distributions		80,518			98,721
Redeemed		(533,994	)		(564,924	)
Net increase (decrease) in Class A shares outstanding		(60,823	)		1,679,541
Class B:
Sold		N/A			N/A
Reinvestment of distributions		N/A			N/A
Redeemed		N/A			N/A
Net decrease in Class B shares outstanding		N/A			N/A
Advisor Class:
Sold		2,105,999			3,422,585
Reinvestment of distributions		163,248			213,906
Redeemed		(890,427	)		(728,074	)
Net increase (decrease) in Advisor Class shares outstanding		1,378,820			2,908,417
Institutional Class:
Sold		11,234			36,276
Reinvestment of distributions		1,182			1,725
Redeemed		(20,612	)		(38,418	)
Net increase (decrease) in Institutional Class shares outstanding		(8,196	)		(417	)

See notes to financial statements

242

SELECT GROWTH						SPECIAL SITUATIONS						TOTAL RETURN
10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017			10/1/2017 to 3/31/2018			10/1/2016 to 9/30/2017
	3,201,600			4,294,908			1,134,722			2,073,735			1,947,048			4,792,452
	3,292,870			5,154,994			478,221			248,456			1,101,183			1,425,706
	(3,118,682	)		(5,689,031	)		(1,335,807	)		(2,636,533	)		(3,733,840	)		(6,585,924	)
	3,375,788			3,760,871			277,136			(314,342	)		(685,609	)		(367,766	)
	12,791			29,073			5,165			15,897			14,089			32,703
	31,213			57,376			4,378			2,619			7,582			9,767
	(49,919	)		(121,992	)		(21,230	)		(51,787	)		(48,453	)		(103,501	)
	(5,915	)		(35,543	)		(11,687	)		(33,271	)		(26,782	)		(61,031	)
	1,444,135			2,306,144			993,207			2,064,158			3,892			25,816
	581,332			957,774			106,833			33,687			1,178			1,714
	(712,738	)		(2,480,897	)		(286,569	)		(487,241	)		(7,010	)		(41,389	)
	1,312,729			783,021			813,471			1,610,604			(1,940	)		(13,859	)
	82,662			81,566			20,281			40,888			10,756			23,175
	36,987			52,639			7,610			3,976			45,349			59,362
	(21,930	)		(74,392	)		(17,786	)		(29,155	)		(45,722	)		(109,856	)
	97,719			59,813			10,105			15,709			10,383			(27,319	)

243

Statement of Cash Flows

LONG SHORT FUND

For the period October 1, 2017 through March 31, 2018

Increase/decrease in cash
Cash flows from operating activities:
Net decrease in assets from operations	$	(900,944	)
Adjustments to reconcile net increase in net assets from opertions to net cash used in operating activities:
Purchases of investment securities		(47,244,443	)
Proceeds from sale of investment securities		50,349,511
Proceeds from short sales		32,332,613
Closed short transactions		(41,042,302	)
Decrease in cash deposited with broker for securities sold short		8,679,217
Increase in receivables for securities sold		(761,650	)
Decrease in dividends receivable		3,148
Decrease in interest receivable		7,723
Decrease in fund shares sold		41,700
Increase in other assets		(1,394	)
Increase in payables for securities purchased		833,990
Decrease in dividends on securities sold short payable		27,295
Increase in fund shares redeemed		63,867
Increase in accrued advisory fees		70,530
Decrease in accrued expenses		(7,918	)
Net realized (gain) loss on investments		1,166,261
Net change in unrealized (appreciation) depreciation on securities		(666,700	)
Net cash provided by operating activities		2,950,504
Cash flows from financing activities:
Proceeds from sale of shares		14,230,533
Redemption of shares		(8,473,333	)
Net cash provided by financing activities		5,757,200
Net increase in cash		8,707,704
Cash:
Beginning balance		7,229,040
Ending balance	$	15,936,744

See notes to financial statements

244

Notes to Financial Statements

FIRST INVESTORS INCOME FUNDS

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

1. Significant Accounting Policies— First Investors Income Funds (“Income Funds”) and First Investors Equity Funds (“Equity Funds”), each a Delaware statutory trust (each a “Trust”, collectively, “the Trusts”), are registered under the Investment Company Act of 1940 (the “1940 Act”) as open-end management investment companies and operate as series funds. Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standard Board (FASB) Accounting Standard Codification Topic 946 “Financial Services – Investment Companies” including FASB Accounting Standard Update ASU 2013-08.The Income Funds issue shares of beneficial interest in the Balanced Income Fund, Floating Rate Fund, Fund For Income, Government Fund, Government Cash Management Fund, International Opportunities Bond Fund, Investment Grade Fund, Limited Duration Bond Fund and Strategic Income Fund. All of the Income Funds are diversified funds except International Opportunities Bond Fund which is a non-diversified fund. The Equity Funds issue shares of beneficial interest in the Covered Call Strategy Fund, Equity Income Fund, Global Fund, Growth & Income Fund, Hedged U.S. Equity Opportunities Fund, International Fund, Long Short Fund, Opportunity Fund, Real Estate Fund, Select Growth Fund, Special Situations Fund and Total Return Fund (each a “Fund”, collectively, “the Funds”). All of the Equity Funds are diversified funds, except Long Short Fund and Real Estate Fund which are non-diversified funds. The Trusts account separately for the assets, liabilities and operations of each Fund. The objective of each Fund as of March 31, 2018, is as follows:

Balanced Income Fund seeks income as its primary objective and has a secondary objective of capital appreciation.

Floating Rate Fund seeks a high level of current income.

Fund For Income seeks high current income.

Government Fund seeks to achieve a significant level of current income which is consistent with security and liquidity of principal.

Government Cash Management Fund seeks to earn a high rate of current income consistent with the preservation of capital and maintenance of liquidity.

International Opportunities Bond Fund seeks total return consisting of income and capital appreciation.

Investment Grade Fund seeks to generate a maximum level of income consistent with investment primarily in investment grade debt securities.

Limited Duration Bond Fund seeks current income consistent with low volatility of principal.

Strategic Income Fund seeks a high level of current income.

Covered Call Strategy Fund seeks long-term capital appreciation.

245

Notes to Financial Statements (continued)

FIRST INVESTORS INCOME FUNDS

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

Equity Income Fund seeks total return.

Global Fund seeks long-term capital growth.

Growth & Income Fund seeks long-term growth of capital and current income.

Hedged U.S. Equity Opportunities Fund seeks total return and, secondarily, capital appreciation.

International Fund primarily seeks long-term capital growth.

Long Short Fund seeks capital appreciation.

Opportunity Fund seeks long-term capital growth.

Real Estate Fund seeks total return.

Select Growth Fund seeks long-term growth of capital.

Special Situations Fund seeks long-term growth of capital.

Total Return Fund seeks high, long-term total investment return consistent with moderate investment risk.

A. Security Valuation—Except as provided below, a security listed or traded on an exchange or the Nasdaq Stock Market is valued at its last sale price on the exchange or market where the security is principally traded, and lacking any sales, the security is valued at the mean between the closing bid and asked prices. Securities traded in the over-the-counter (“OTC”) market (including securities listed on exchanges whose primary market is believed to be OTC) are valued at the mean between the last bid and asked prices based on quotes furnished by a market maker for such securities or an authorized pricing service. Fixed income securities, other than short-term debt securities held by the Government Cash Management Fund, are priced based upon evaluated prices that are provided by a pricing service approved by the Trust’s Board of Trustees (the “Board”). Other securities may also be priced based upon valuations that are provided by pricing services approved by the Board. The pricing services consider security type, rating, market condition and yield data as well as market quotations, prices provided by market makers and other available information in determining evaluated prices. The net asset value of the Strategic Income Fund is derived from the net asset values of the underlying Funds in which it invests.

The Funds monitor for significant events occurring prior to the close of trading on the New York Stock Exchange that could have a material impact on the value of any securities that are held by the Funds. Examples of such events include trading halts, natural disasters, political events and issuer-specific developments. If the Valuation Committee of Foresters Investment Management Company, Inc. (“FIMCO”) decides that such events warrant using fair value estimates, it will take such events into consideration in determining the fair values of such securities. If market

246

quotations or prices are not readily available or are deemed to be unreliable, or do not appear to effect significant events that have occurred prior to the time as of which the net asset value is calculated, the securities may be valued at fair value as determined in good faith pursuant to procedures adopted by the Board. The Funds also use evaluated prices from a pricing service to fair value foreign equity securities in the event that fluctuation in U.S. securities markets exceed a predetermined level or if a foreign market is closed. For valuation purposes, where applicable, quotations of foreign securities in foreign currencies are translated to U.S. dollar equivalents using the foreign exchange quotation in effect. At March 31, 2018, the Investment Grade Fund held one security that was fair valued at a value of $2,700,000, representing 0.4% of the Fund’s net assets and Hedged U.S. Equity Opportunities Fund held one security that was fair valued at a value of $57,393, representing 0.1% of the Fund’s net assets.

The Government Cash Management Fund values its portfolio securities in accordance with the amortized cost method of valuation under Rule 2a-7 under the 1940 Act. Amortized cost is an approximation of market value of an instrument, whereby the difference between its acquisition cost and market value at maturity is amortized on a straight-line basis over the remaining life of the instrument. The effect of changes in the market value of a security as a result of fluctuating interest rates is not taken into account and thus the amortized cost method of valuation may result in the value of a security being higher or lower than its actual market value.

In accordance with Accounting Standards Codification 820 “Fair Value Measurements and Disclosures” (“ASC 820”), investments held by the Funds are carried at “fair value”. As defined by ASC 820, fair value is the price that a fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs are used in determining the value of the fund’s investments.

In addition to defining fair value, ASC 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:

Level 1—Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2—Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3—Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

Equity securities and options and futures contracts traded on an exchange or the Nasdaq Stock Market are categorized in Level 1 of the fair value hierarchy to the extent that they are actively

247

Notes to Financial Statements (continued)

FIRST INVESTORS INCOME FUNDS

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

traded and valuation adjustments are not applied. The underlying Funds in which Strategic Income Fund invests are also categorized in Level 1. Foreign securities that are fair valued in the event that fluctuations in U.S. securities markets exceed a predetermined level or if a foreign market is closed are categorized in Level 2. Variable and floating rate, corporate, sovereign and municipal bonds, asset backed, U.S. Government and U.S. Government Agency securities, pass-through certificates and loan participations are categorized in Level 2 to the extent that the inputs are observable and timely, otherwise they would be categorized in Level 3. Short-term notes that are valued at amortized cost by the Government Cash Management Fund are categorized in Level 2. Foreign exchange contracts that are considered derivative instruments and are valued at the net unrealized appreciation or depreciation on the instruments are categorized in Level 2. Securities that are fair valued by the Valuation Committee may be categorized in either Level 2 or Level 3 of the fair value hierarchy depending on the relative significance of the unobservable valuation inputs.

The aggregate value by input level, as of March 31, 2018, for each Fund’s investments is included following each Fund’s portfolio of investments.

B. Federal Income Taxes—No provision has been made for federal income taxes on net income or capital gains since it is the policy of each Fund to continue to comply with the special provisions of the Internal Revenue Code applicable to investment companies, and to make sufficient distributions of income and capital gains (in excess of any available capital loss carryovers) to relieve it from all, or substantially all, such taxes. At September 30, 2017, capital loss carryovers were as follows:

			Year Capital Loss Carryforwards Expire				Capital Loss Carryovers Not Subject to Expiration
Fund	Total		2018		2019		Long Term		Short Term
Floating Rate	$	3,919,125	$	—	$	—	$	3,201,056	$	718,069
Fund For Income		149,609,253		110,622,886		—		34,750,808		4,235,559
Government		18,571,459		—		40,595		—		18,530,864
International Opportunities Bond		4,401,046		—		—		6,764		4,394,282
Investment Grade		4,244,754		—		—		4,244,754		—
Limited Duration Bond		2,169,228		—		—		1,213,489		955,739
Strategic Income		2,225,804		—		—		2,167,668		58,136
Hedged U.S. Equity Opportunities		1,874,861		—		—		1,769,414		105,447
International		13,051,390		10,860,148		2,191,242		—		—
Long Short		1,404,177		—		—		—		1,404,177

As a result of the passage of the Regulated Investment Company Modernization Act of 2010 (“the Modernization Act of 2010”), losses incurred in fiscal year 2010 and beyond retain their

248

character as short-term or long-term, have no expiration date and are utilized prior to capital loss carryovers occurring prior to the enactment of the Modernization Act of 2010.

The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Funds’ tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years 2015 – 2017, or expected to be taken in the Funds’ 2018 tax returns. The Funds identify their major tax jurisdictions as U.S. Federal, New York State, New York City and foreign jurisdictions where the Funds make significant investments; however, the Funds are not aware of any tax position for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.

C. Distributions to Shareholders—Dividends from net investment income of Balanced Income Fund, Floating Rate Fund, Fund For Income, Government Fund, Investment Grade Fund, Limited Duration Bond Fund, and Strategic Income Fund are generally declared daily and paid monthly. The Government Cash Management Fund declares distributions, if any, daily and pays distributions monthly, from the total of net investment income plus or minus all realized short-term gains and losses on investments. Prior to March 31, 2016, dividends from net investment income of International Opportunities Bond Fund were generally declared daily and paid monthly. Effective April 1, 2016, dividends from net investment income, if any, of International Opportunities Bond Fund are declared and paid quarterly. Dividends from net investment income, if any, of Covered Call Strategy Fund, Equity Income Fund, Growth & Income Fund, Real Estate Fund and Total Return Fund are declared and paid quarterly. Dividends from net investment income, if any, of Global Fund, Hedged U.S. Equity Opportunities Fund, International Fund, Long Short Fund, Opportunity Fund, Select Growth Fund and Special Situations Fund are declared and paid annually. Distributions from net realized capital gains, if any, of each of the Funds are normally declared and paid annually. Income dividends and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for capital loss carryforwards, deferral of wash sales losses, post-October capital losses, late loss deferrals, net operating losses and foreign currency transactions.

D. Expense Allocation—Expenses directly charged or attributable to a Fund are paid from the assets of that Fund. General expenses of the Trusts are allocated among and charged to the assets of each Fund on a fair and equitable basis, which may be based on the relative assets of each Fund or the nature of the services performed and relative applicability to each Fund.

E. Use of Estimates—The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expense during the reporting period. Actual results could differ from those estimates.

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Notes to Financial Statements (continued)

FIRST INVESTORS INCOME FUNDS

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

F. Foreign Currency Translations—The accounting records of all of the Funds are maintained in U.S. dollars, including those Funds that invest in foreign securities. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated to U.S. dollars at the date of valuation. Purchases and sales of foreign investment securities, dividend income and certain expenses are translated to U.S. dollars at the rates of exchange prevailing on the respective dates of such transactions.

International Opportunities Bond Fund, Global Fund, Hedged U.S. Equity Opportunities Fund and International Fund do not isolate that portion of gains and losses on foreign investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. These changes are included with the net realized and unrealized gains and losses from investments.

Net realized and unrealized gains and losses on foreign currency transactions include gains and losses from the sales of foreign currency and gains and losses on accrued foreign dividends and related withholding taxes.

G. Other—Security transactions are generally accounted for on the first business day following the date the securities are purchased or sold, except for financial reporting purposes, which is trade date. Investments in securities issued on a when-issued or delayed delivery basis are generally reflected in the assets of the Funds on the first business day following the date the securities are purchased and the Funds segregate assets for these transactions. Cost of securities is determined and gains and losses are based on the identified cost basis for both financial statement and federal income tax purposes. Dividend income is recorded on the ex-dividend date or for certain foreign dividends, as soon as the Fund becomes aware of the dividends. Interest income and estimated expenses are accrued daily. Bond discounts and premiums are accreted or amortized using the interest method. Withholding taxes on foreign dividends have been provided in accordance with the Funds’ understanding of the applicable country’s tax rules and rates. The Bank of New York Mellon serves as custodian for the Funds and may provide credits against custodian charges based on uninvested cash balance of the Funds. For the period ended March 31, 2018, the Income Funds and Equity Funds received credits in the amount of $30,380 and $69,050, respectively. Certain of the Income and Equity Funds reduced expenses through brokerage service arrangements. For the period ended March 31, 2018, expenses were reduced by a total of $155 for certain of the Income Funds and $17,621 for certain of the Equity Funds under these arrangements.

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2. Security Transactions—For the period ended March 31, 2018, purchases and sales of securities and long-term U.S. Government obligations (excluding U.S. Treasury bills, short-term securities and foreign currencies) were as follows:

	Securities				Long-Term U.S. Government Obligations
Fund	Cost of Purchases		Proceeds of Sales		Cost of Purchases		Proceeds of Sales
Balanced Income	$	16,749,416	$	7,605,075	$	—	$	—
Floating Rate		66,541,944		49,420,378		—		—
Fund For Income		260,253,715		285,187,915		—		—
Government		43,555,223		50,986,706		19,118,431		15,361,902
International Opportunities Bond		43,539,920		34,304,368		5,219,099		9,688,023
Investment Grade		188,757,441		170,586,776		—		—
Limited Duration Bond		28,683,979		39,693,779		985,273		7,178,025
Strategic Income		46,260,164		48,859,622		—		—
Covered Call Strategy		253,699,472		189,909,768		—		—
Equity Income		56,070,178		80,363,351		—		—
Global		236,117,876		227,834,053		—		—
Growth & Income.		184,736,423		259,850,597		—		—
Hedged U.S. Equity Opportunities		44,823,259		35,365,877		—		—
International		86,581,395		59,320,708		—		—
Long Short		47,244,443		50,349,511		—		—
Opportunity		170,816,182		168,649,891		—		—
Real Estate		18,335,085		7,810,368		—		—
Select Growth .		59,253,513		59,189,469		—		—
Special Situations		199,235,132		189,092,641		—		—
Total Return		174,581,916		155,684,350		5,461,973		18,633,268

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Notes to Financial Statements (continued)

FIRST INVESTORS INCOME FUNDS

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

At March 31, 2018, aggregate cost and net unrealized appreciation (depreciation) of securities for federal income tax purposes were as follows:

Fund	Aggregate Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)
Balanced Income	$	51,845,144	$	2,893,506	$	1,795,499	$	1,098,007
Floating Rate		206,943,294		1,882,378		761,180		1,121,198
Fund For Income		684,338,623		8,100,748		13,808,693		(5,707,945	)
Government		266,268,502		821,885		7,242,002		(6,420,117	)
International Opportunities Bond		156,084,624		3,413,117		9,479,212		(6,066,095	)
Investment Grade		628,572,220		4,446,898		18,436,278		(13,989,380	)
Limited Duration Bond		125,720,707		50,901		4,135,516		(4,084,615	)
Strategic Income		164,391,740		57,220		6,350,072		(6,292,852	)
Covered Call Strategy		333,479,036		37,728,547		10,154,212		27,574,335
Equity Income		429,420,522		208,900,624		7,510,703		201,389,921
Global		522,354,271		106,620,678		10,945,034		95,675,644
Growth & Income.		1,131,886,922		760,960,727		41,195,575		719,765,152
Hedged U.S. Equity Opportunities		78,080,915		10,502,231		1,727,689		8,774,542
International		290,499,435		102,012,846		5,275,824		96,737,022
Long Short		16,780,729		5,840,811		2,661,933		3,178,878
Opportunity		765,683,320		363,372,669		28,531,799		334,840,870
Real Estate		129,023,561		4,457,147		13,849,754		(9,392,607	)
Select Growth		430,502,468		157,303,942		4,206,122		153,097,820
Special Situations		571,021,495		167,945,751		29,160,902		138,784,849
Total Return		693,521,652		214,929,613		22,261,122		192,668,491

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The Strategic Income Fund may invest in Institutional Class shares of the Floating Rate Fund, Fund For Income, Government Fund, Government Cash Management Fund, International Opportunities Bond Fund, Investment Grade Fund, Limited Duration Bond Fund, Covered Call Strategy Fund, Equity Income Fund, Real Estate Fund, Tax Exempt Income Fund and Tax Exempt Opportunities Fund. During the period ended March 31, 2018, purchases and sales of shares, dividends, capital gain distributions received and realized gains (losses) recognized by Strategic Income Fund from investments in these Funds were as follows:

Fund	Balance of Shares Held 9/30/2017		Purchases/ Additions		Sales/ Reductions			Balance of Shares Held 3/31/2018		Value 3/31/2018		Dividend Income		Capital Gain Distributions		Realized Gain (Loss) on Security Transactions
Floating Rate		2,116,830		432,134		—			2,548,964	$	24,673,974	$	387,597	$	—	$	—
Fund For Income		24,252,191		249,884		(4,757,619	)		19,744,456		48,571,361		1,571,531		—		8,309
Government		—		791,322		—			791,322		8,126,880		3,017		—		—
International Opportunities Bond		838,186		8,857		—			847,043		8,190,907		250,937		—		—
Investment Grade		2,513,571		447,365		(402,467	)		2,558,469		23,998,440		439,106		—		(111,678	)
Limited Duration Bond		4,292,273		630,102		(1,434,510	)		3,487,865		32,367,384		485,560		—		(158,076	)
Covered Call Strategy		446,068		339,053		(785,121	)		—		—		16,757		—		365,604
Equity Income		—		74,784		(74,784	)		—		—		—		—		(38,140	)
Tax Exempt Income		—		1,060,486		(173,214	)		887,272		8,171,774		70,345		—		(6,928	)
Tax Exempt Opportunities		—		508,352		(508,352	)		—		—		30,489		—		(73,155	)
		34,459,119		4,542,339		(8,136,067	)		30,865,391	$	154,100,720	$	3,255,339	$	—	$	(14,064	)

The Strategic Income Fund operates as a fund of funds - also referred to as a multi-manager investment - an investment strategy in which a fund invests in other types of funds. This strategy invests in a portfolio that contains different underlying assets instead of investing directly in bonds, stocks and other types of securities.

The financial statements of each of the Funds in which Strategic Income Fund had investments during the period ended March 31, 2018 are included in this report except Tax Exempt Income Fund and Tax Exempt Opportunities Fund, whose most recent financial statements as of December 31, 2017 are available and can be viewed by visiting our website www.foresters.com, by calling 1-800-423-4026 or by writing to us at the following address: Foresters Financial Services, Inc., 40 Wall Street, New York, NY 10005.

3. Advisory Fee and Other Transactions With Affiliates—Certain officers of the Trusts are officers of the Trusts’ investment adviser, FIMCO, their underwriter, Foresters Financial Services, Inc. (“FFS”) and their transfer agent, Foresters Investor Services, Inc. (“FIS”). Trustees of the Trusts who are not officers or directors of FIMCO or its affiliates are remunerated by the

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Notes to Financial Statements (continued)

FIRST INVESTORS INCOME FUNDS

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

Funds. For the period ended March 31, 2018, total trustees fees accrued by the Income Funds and Equity Funds amounted to $70,886 and $219,374, respectively.

The Investment Advisory Agreements provide as compensation to FIMCO for each Fund, an annual fee, payable monthly, at the following rates:

Balanced Income Fund—.70% on the first $300 million of the Fund’s average daily net assets, .65% on the next $200 million, .60% on the next $500 million, .55% on the next $1 billion, declining by .05% on each $1 billion thereafter down to .45% on average daily net assets over $3 billion. For the period ended March 31, 2018, FIMCO has waived, pursuant to an expense limitation agreement, $84,123 in advisory fees and assumed $50 in other expenses to limit the Fund’s overall expense ratio (exclusive of certain expenses) to 1.15% on Class A shares, .82% on Advisor Class shares and .69% on Institutional Class shares.

Floating Rate Fund—.60% on the first $250 million of the Fund’s average daily net assets, .55% on the next $250 million, .50% on the next $500 million, .45% on the next $1 billion and .40% on average daily net assets over $2 billion. For the period ended March 31, 2018, FIMCO has waived, pursuant to an expense limitation agreement, $40,669 in advisory fees and assumed $15,842 in other expenses to limit the Fund’s overall expense ratio (exclusive of certain expenses) to 1.10% on Class A shares, .90% on Advisor Class shares and .70% on Institutional Class shares.

Fund For Income and International Opportunities Bond Fund—.75% on the first $250 million of each Fund’s average daily net assets, .72% on the next $250 million, .69% on the next $250 million, .66% on the next $500 million, declining by .02% on each $500 million thereafter, down to .60% on average daily net assets over $2.25 billion. For the period ended March 31, 2018, FIMCO has voluntarily waived $76,967 in advisory fees on Fund For Income to limit the advisory fee to .70% of its average daily net assets.

Government and Investment Grade Funds—.66% on the first $500 million of each Fund’s average daily net assets, declining by .02% on each $500 million thereafter, down to .60% on average daily net assets over $1.5 billion. For the period ended March 31, 2018, FIMCO has voluntarily waived $208,811 in advisory fees on Government Fund to limit the advisory fee to .50% of its average daily net assets. For the period ended March 31, 2018, FIMCO has voluntarily waived $330,720 in advisory fees on Investment Grade Fund to limit the advisory fee to .55% of its average daily net assets.

Government Cash Management Fund—.50% of the Fund’s average daily net assets. For the period ended March 31, 2018, FIMCO has voluntarily waived $240,591 in advisory fees to limit the advisory fee on the Fund to .60% of the Fund’s net assets and assumed $72 of other Fund expenses to prevent a negative yield on the Fund’s shares.

Limited Duration Bond Fund—During the period October 1, 2017 through January 30, 2018, the rate was .66% on the first $500 million of each Fund’s average daily net assets, declining by .02% on each $500 million thereafter, down to .60% on average daily net assets over $1.5 billion.

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Effective January 31, 2018, the rate was changed to .41% on the first $500 million of the Fund’s average daily net assets, .39% on the next $500 million, .37% on the next $500 million and .35% on average daily net assets over $1.5 billion. During the period October 1, 2017 through January 30, 2018, FIMCO has waived, pursuant to an expense limitation agreement that expired on January 31, 2018, $66,967 in advisory fees and assumed $6,251 in other expenses to limit the Fund’s overall expense ratio (exclusive of certain expenses) to 1.05% on Class A shares, .75% on Advisor Class shares and .60% on Institutional Class shares. During the period March 14, 2018 through March 31, 2018, FIMCO has waived, pursuant to an expense limitation agreement $26,497 in advisory fees and $6,001 in other expenses to limit the Fund’s overall expense ratio (exclusive of certain expenses) to .79% on Class a shares, .51% on Advisor Class shares and .36% on Institutional Class shares.

Strategic Income Fund—.05% of the Fund’s average daily net assets.

Covered Call Strategy Fund—.80% on the first $300 million of each Fund’s average daily net assets, .75% on the next $200 million, .70% on the next $500 million, declining by .05% on each $1 billion thereafter, down to .55% on average daily net assets over $3 billion. For the period ended March 31, 2018, FIMCO has waived, pursuant to an expense limitation agreement $20,214 in advisory fees and assumed $395 in other expenses to limit the Covered Call Strategy Fund’s overall expense ratio (exclusive of certain expenses) to 1.30% on Class A shares, .97% on Advisor Class shares and .84% on Institutional Class shares.

Equity Income, Growth & Income, Opportunity, Real Estate and Select Growth Funds—.75% on the first $300 million of each Fund’s average daily net assets, .72% on the next $200 million, .69% on the next $250 million, .66% on the next $500 million, declining by .02% on each $500 million thereafter, down to .60% on average daily net assets over $2.25 billion.

Global Fund—.95% on the first $600 million, .92% on the next $400 million, .90% on the next $500 million and .88% on average daily net assets over $1.5 billion. For the period ended March 31, 2018, FIMCO has voluntarily waived $150,852 in advisory fees to limit the advisory fee to .90% of the Fund’s average daily net assets.

Hedged U.S. Equity Opportunities Fund—1.15% on the first $100 million of each Fund’s average daily net assets, 1.10% on the next $400 million, 1.05% on the next $500 million, declining by .05% on each $1 billion thereafter, down to .90% on average daily net assets over $3 billion. For the period ended March 31, 2018, FIMCO has waived, pursuant to an expense limitation agreement, $12,523 in advisory fees and assumed $173 in other expenses to limit the Hedged U.S. Equity Opportunities Fund’s overall expense ratio (exclusive of certain expenses) to 1.75% on Class A shares, 1.42% on Advisor Class shares and 1.31% on Institutional Class shares.

International Fund—.98% on the first $300 million of the Fund’s average daily net assets, .95% on the next $300 million, .92% on the next $400 million, .90% on the next $500 million and .88% on average daily net assets over $1.5 billion.

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Notes to Financial Statements (continued)

FIRST INVESTORS INCOME FUNDS

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

Long Short Fund—1.40% of the Fund’s average daily net assets. For the period ended March 31, 2018, FIMCO has waived, pursuant to an expense limitation agreement $34,379 in advisory fees and assumed $661 in other expenses to limit the Long Short Fund’s overall expense ratio (exclusive of certain expenses) to 1.95% on Class A shares, 1.67% on Advisor Class shares and 1.54% on Institutional Class shares.

Special Situations Fund—.90% on the first $200 million of the Fund’s average daily net assets, .75% on the next $300 million, .72% on the next $250 million, .69% on the next $250 million, .66% on the next $500 million and .64% on average daily net assets over $1.5 billion.

Total Return Fund—.75% on the first $300 million of the Fund’s average daily net assets, .70% on the next $200 million, .65% on the next $500 million, .60% on the next $1 billion, .55% on the next $1 billion, down to .50% on average daily net assets over $3 billion.

For the period ended March 31, 2018, total advisory fees accrued to FIMCO by the Income Funds and Equity Funds were $7,495,177 and $28,421,914, respectively, of which $1,026,390 and $219,197, respectively, was waived by FIMCO as noted above.

FIMCO has entered into an expense limitation agreement with the Balanced Income Fund (“BIF”) to limit BIF’s total annual fund operating expenses (exclusive of interest expenses, taxes, brokerage commissions, acquired fund fees and expenses, dividend costs related to short sales, and extraordinary expenses, such as litigation expenses, if any) to 1.15% of the average daily net assets on Class A shares, .82% of the average daily net assets on Advisor Class shares and .69% of the average daily net assets on Institutional Class shares. The agreement expires on January 31, 2019. For the period ended March 31, 2018, FIMCO assumed $84,173 under terms of the agreement. FIMCO and BIF have agreed that any expenses of BIF assumed by FIMCO pursuant to this agreement be repaid to FIMCO by BIF within three years after the date the fee limitation and/or expense reimbursement has been made by FIMCO, provided that such repayment does not cause the expenses of BIF’s Class A shares, Advisor Class shares and Institutional Class shares to exceed the applicable expense ratio in place at the time the expenses are waived or assumed or the current limits established under the expense limitation agreement. For the period October 1, 2015 (commencement of operations) through March 31, 2018, FIMCO assumed $421,569 under the terms of the agreement of which $176,568 expires on September 30, 2019, $160,828 expires on September 30, 2020 and $84,173 expires on September 30, 2021. The expense limitation agreement may be terminated or amended prior to January 31, 2019, with the approval of the Board.

FIMCO has entered into an expense limitation agreement with the Floating Rate Fund (“FRF”) to limit FRF’s total annual fund operating expenses (exclusive of interest expenses, taxes, brokerage commissions, acquired fund fees and expenses, dividend costs related to short sales, and extraordinary expenses, such as litigation expenses, if any) to 1.10% of the average daily net assets on Class A shares, .90% of the average daily net assets on Advisor Class shares and .70% of the average daily net assets on Institutional Class shares. The agreement expires on January 31, 2019. For the period ended March 31, 2018, FIMCO assumed $56,511, under the

256

terms of the agreement. FIMCO and FRF have agreed that any expenses of FRF assumed by FIMCO pursuant to this agreement be repaid to FIMCO by FRF within three years after the date the fee limitation and/or expense reimbursement has been made by FIMCO, provided that such repayment does not cause the expenses of FRF’s Class A shares, Advisor Class shares and Institutional Class shares to exceed the applicable expense ratio in place at the time the expenses are waived or assumed or the current limits established under the expense limitation agreement. For the period October 21, 2013 (commencement of operations) through March 31, 2018, FIMCO assumed $771,516 under the terms of the agreement of which $223,534 expired on September 30, 2017, $198,431 expires on September 30, 2018, $161,613 expires on September 30, 2019, $131,427 expires on September 30, 2020 and $56,511 expires on September 30, 2021. The expense limitation agreement may be terminated or amended prior to January 31, 2019, with the approval of the Board.

FIMCO had entered into an expense limitation agreement with the International Opportunities Bond Fund (“IOBF”) to limit IOBF’s total annual fund operating expenses (exclusive of interest expenses, taxes, brokerage commissions, acquired fund fees and expenses, dividend costs related to short sales, and extraordinary expenses, such as litigation expenses, if any) to 1.30% of the average daily net assets on Class A shares. The agreement expired on January 31, 2016. FIMCO and IOBF have agreed that any expenses of IOBF assumed by FIMCO pursuant to this agreement be repaid to FIMCO by IOBF within three years after the date the fee limitation and/or expense reimbursement has been made by FIMCO, provided that such repayment does not cause the expenses of IOBF’s Class A shares to exceed the applicable expense ratio in place at the time the expenses are waived or assumed or the current limits established under the expense limitation agreement. For the period August 20, 2012 (commencement of operations) to January 31, 2016 (expiration of the expense limitation agreement), FIMCO assumed $684,479 under the terms of the agreement of which $278,248 expired on September 30, 2015, $228,243 expired on September 30, 2016, $94,746 expired on September 30, 2017, $62,359 expires on September 30, 2018, and $20,883 expires on September 30, 2019.

FIMCO has entered into an expense limitation agreement with the Limited Duration Bond Fund (“LDB”) on March 14, 2018, to limit LDB’s total annual fund operating expenses (exclusive of interest expenses, taxes, brokerage commissions, acquired fund fees and expenses, dividend costs related to short sales, and extraordinary expenses, such as litigation expenses, if any) to .79% of the average daily net assets on Class A shares, .51% of the average daily net assets on Advisor Class shares and .36% of the average daily net assets on Institutional Class shares. The agreement expires on March 14, 2019. FIMCO and LDB have agreed that any expenses of LDB assumed by FIMCO pursuant to this agreement be repaid to FIMCO by LDB within three years after the date the fee limitation and/or expense reimbursement has been made by FIMCO, provided that such repayment does not cause the expenses of LDB’s Class A shares, Advisor Class shares and Institutional Class shares to exceed the applicable expense ratio in place at the time the expenses are waived or assumed or the current limits established under the expense limitation agreement. For the period March 14, 2018 to March 31, 2018, FIMCO assumed $32,498 under the terms of the agreement of which $32,498 expires on September 30, 2021. The expense limitation agreement may be terminated or amended prior to March 14, 2019, with

257

Notes to Financial Statements (continued)

FIRST INVESTORS INCOME FUNDS

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

the approval of the Board. FIMCO had previously entered into an expense limitation agreement with LDB to limit LDB’s total annual fund operating expenses (exclusive of interest expenses, taxes, brokerage commissions, acquired fund fees and expenses, dividend costs related to short sales, and extraordinary expenses, such as litigation expenses, if any) to 1.05% of the average daily net assets on Class A shares, .75% of the average daily net assets on Advisor Class shares and .60% of the average daily net assets on Institutional Class shares. The agreement expired on January 31, 2018. FIMCO and LDB have agreed that any expenses of LDB assumed by FIMCO pursuant to this agreement be repaid to FIMCO by LDB within three years after the date the fee limitation and/or expense reimbursement has been made by FIMCO, provided that such repayment does not cause the expenses of LDB’s Class A shares, Advisor Class shares and Institutional Class shares to exceed the applicable expense ratio in place at the time the expenses are waived or assumed or the current limits established under the expense limitation agreement. For the period October 1, 2017 to January 31, 2018, FIMCO assumed $73,218 under the terms of the agreement. For the period May 19, 2014 (commencement of operations) to January 31, 2018 (expiration of the expense limitation agreement), FIMCO assumed $894,488 under the terms of the agreement of which $143,148 expired on September 30, 2017, $179,140 expires on September 30, 2018, $224,276 expires on September 30, 2019, $274,706 expires on September 30, 2020, and $73,218 expires on September 30, 2021.

FIMCO has entered into an expense limitation agreement with the Covered Call Strategy Fund (“CCS”) to limit CCS’s total annual fund operating expenses (exclusive of interest expenses, taxes, brokerage commissions, acquired fund fees and expenses, dividend costs related to short sales, and extraordinary expenses, such as litigation expenses, if any) to 1.30% of the average daily net assets on Class A shares, .97% of the average daily net assets on Advisor Class shares and .84% of the average daily net assets on Institutional Class shares. The agreement expires on January 31, 2019. For the period ended March 31, 2018, FIMCO assumed $20,609 under the terms of the agreement. FIMCO and CCS have agreed that any expenses of CCS assumed by FIMCO pursuant to this agreement be repaid to FIMCO by CCS within three years after the date the fee limitation and/or expense reimbursement has been made by FIMCO, provided that such repayment does not cause the expenses of CCS’s Class A shares, Advisor Class shares and Institutional Class shares to exceed the applicable expense ratio in place at the time the expenses are waived or assumed or the current limits established under the expense limitation agreement. For the period April 1, 2016 (commencement of operations) through March 31, 2018, FIMCO assumed $289,051 under the terms of the agreement of which $130,501 expires on September 30, 2019, $137,941 expires on September 30, 2020 and $20,609 expires on September 30, 2021. The expense limitation agreement may be terminated or amended prior to January 31, 2019, with the approval of the Board.

FIMCO has entered into an expense limitation agreement with the Hedged U.S. Equity Opportunities Fund (“HUSEO”) to limit HUSEO’s total annual fund operating expenses (exclusive of interest expenses, taxes, brokerage commissions, acquired fund fees and expenses, dividend costs related to short sales, and extraordinary expenses, such as litigation expenses, if any) to 1.75% of the average daily net assets on Class A shares, 1.42% of the average daily net assets on Advisor Class shares and 1.31% of the average daily net assets on Institutional

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Class shares. The agreement expires on January 31, 2019. For the period ended March 31, 2018, FIMCO assumed $12,696 under terms of the agreement. FIMCO and HUSEO have agreed that any expenses of HUSEO assumed by FIMCO pursuant to this agreement be repaid to FIMCO by HUSEO within three years after the date the fee limitation and/or expense reimbursement has been made by FIMCO, provided that such repayment does not cause the expenses of HUSEO’s Class A shares, Advisor Class shares and Institutional Class shares to exceed the applicable expense ratio in place at the time the expenses are waived or assumed or the current limits established under the expense limitation agreement. For the period August 1, 2016 (commencement of operations) through March 31, 2018, FIMCO assumed $286,782 under the terms of the agreement of which $59,255 expires on September 30, 2019, $214,831 expires on September 30, 2020 and $12,696 expires on September 30, 2021. The expense limitation agreement may be terminated or amended prior to January 31, 2019, with the approval of the Board.

FIMCO has entered into an expense limitation agreement with the Long Short Fund (“LSF”) to limit LSF’s total annual fund operating expenses (exclusive of interest expenses, taxes, brokerage commissions, acquired fund fees and expenses, dividend costs related to short sales, including dividend and borrowing expenses, and extraordinary expenses, such as litigation expenses, if any) to 1.95% of the average daily net assets on Class A shares, 1.67% of the average daily net assets on Advisor Class shares and 1.54% of the average daily net assets on Institutional Class shares. The agreement expires on January 31, 2019. For the period ended March 31, 2018, FIMCO assumed $35,040 under the terms of the agreement. FIMCO and LSF have agreed that any expenses of LSF assumed by FIMCO pursuant to this agreement be repaid to FIMCO by LSF within three years after the date the fee limitation and/or expense reimbursement has been made by FIMCO, provided that such repayment does not cause the expenses of LSF’s Class A shares, Advisor Class shares and Institutional Class shares to exceed the applicable expense ratio in place at the time the expenses are waived or assumed or the current limits established under the expense limitation agreement. For the period December 1, 2016 (commencement of operations) through March 31, 2018, FIMCO assumed $194,404 under the terms of the agreement of which $159,364 expires on September 30, 2020 and $35,040 expires on September 30, 2021. The expense limitation agreement may be terminated or amended prior to January 31, 2019, with the approval of the Board.

FIMCO had entered into an expense limitation agreement with the Real Estate Fund (“REIT”) to limit REIT’s total annual fund operating expenses (exclusive of interest expenses, taxes, brokerage commissions, acquired fund fees and expenses, dividend costs related to short sales, and extraordinary expenses, such as litigation expenses, if any) to 1.45% of the average daily net assets on the Class A shares, 1.12% of the average daily net assets on Advisor Class shares and 1.00% of the average daily net assets on Institutional Class shares. The agreement expired on January 31, 2018. For the period ended March 31, 2018, REIT repaid FIMCO $35,025, under the terms of the agreement. FIMCO and REIT have agreed that any expenses of REIT assumed by FIMCO pursuant to this agreement be repaid to FIMCO by REIT within three years after the date the fee limitation and/or expense reimbursement has been made by FIMCO, provided that such repayment does not cause the expenses of REIT’s Class A shares, Advisor Class shares

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FIRST INVESTORS EQUITY FUNDS

March 31, 2018

and Institutional Class shares to exceed the applicable expense ratio in place at the time the expenses are waived or assumed or the current limits established under the expense limitation agreement. For the period April 6, 2015 (commencement of operations) through January 31, 2018 (expiration of the expense limitation agreement), FIMCO assumed $107,261 under the terms of the agreement of which $46,231 expires on September 30, 2018 and $61,030 expires on September 30, 2019.

For the period ended March 31, 2018, FFS, as underwriter, received from the Income Funds and Equity Funds $2,276,212 and $9,669,078, respectively, in commissions in connection with the sale of shares of the Funds, after allowing $39,437 and $161,970, respectively, to other dealers. For the period ended March 31, 2018, shareholder servicing costs for the Income Funds and Equity Funds included $1,632,740 and $4,477,227, respectively, in transfer agent fees accrued to FIS, of which FIS voluntarily waived $22,068 on the Government Cash Management Fund.

Pursuant to Distribution Plans adopted under Rule 12b-1 of the 1940 Act, each Fund, other than the Government Cash Management Fund, is authorized to pay FFS a fee up to .30% (and for certain Funds, up to .25%) of the average daily net assets of the Class A shares and 1% of the average daily net assets of the Class B shares on an annualized basis each fiscal year, payable monthly. The Government Cash Management Fund is authorized to pay FFS a fee up to 1% of the average daily net assets of the Class B shares. The fee consists of a distribution fee and a service fee. The service fee is paid for the ongoing servicing of clients who are shareholders of that Fund. For the period ended March 31, 2018, total distribution plan fees accrued to FFS by the Income Funds and Equity Funds amounted to $2,478,203 and $9,427,753, respectively.

Brandywine Global Investment Management, LLC, serves as investment subadviser to International Opportunities Bond Fund. Muzinich & Co., Inc., serves as investment subadviser to Floating Rate Fund and Fund For Income. Effective January 31, 2018, Muzinich & Co., Inc. serves as investment subadviser to Balanced Income, Investment Grade, Limited Duration Bond and Total Return Funds. Ziegler Capital Management, LLC serves as investment subadviser to Covered Call Strategy Fund. Wellington Management Company, LLP serves as investment subadviser to Global Fund and Hedged U.S. Equity Opportunities Fund. Vontobel Asset Management, Inc. serves as investment subadviser to International Fund. Lazard Asset Management, LLC serves as investment subadviser to Long Short Fund. Smith Asset Management Group, L.P. serves as investment subadviser to Select Growth Fund. The subadvisers are paid by FIMCO and not by the Funds.

4. Restricted Securities—Certain restricted securities are exempt from the registration requirements under Rule 144A of the Securities Act of 1933 and may only be sold to qualified institutional investors. Unless otherwise noted, these 144A securities are deemed to be liquid. At March 31, 2018, the Balanced Income Fund held fifty-four 144A securities with an aggregate value of $2,410,828 representing 4.5% of the Fund’s net assets, Floating Rate Fund held twelve 144A securities with an aggregate value of $5,968,861 representing 2.9% of the Fund’s net assets, Fund For Income held one hundred ninety-seven 144A securities with an aggregate value of $345,812,324 representing 50.9% of the Fund’s net assets, Government Fund held one 144A

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security with a value of $4,628,713 representing 1.8% of the Fund’s net assets, International Opportunities Bond Fund held seven 144A securities with an aggregate value of $12,415,918 representing 8.1% of the Fund’s net assets, Investment Grade Fund held eighty-two 144A securities with an aggregate value of $82,406,239 representing 13.3% of the Fund’s net assets, Limited Duration Bond Fund held seventy-three 144A securities with an aggregate value of $23,503,103 representing 18.3% of the Fund’s net assets and Total Return Fund held seventy-one 144A securities with an aggregate value of $33,818,392 representing 3.8% of the Fund’s net assets. These securities are valued as set forth in Note 1A. Certain restricted securities are exempt from the registration requirements under Regulation S of the Securities Act of 1933 and may only be sold to qualified investors. Unless otherwise noted, these Regulation S securities are deemed to be liquid. At March 31, 2018, International Opportunities Bond Fund held two Regulation S securities with an aggregate value of $5,837,673 representing 3.8% of the Fund’s net assets. These securities are valued as set forth in Note 1A.

5. Derivatives—Some of the Funds may invest in various derivatives. A derivative is a financial instrument which has a value that is based on – or “derived from” – the values of other assets, reference rates, or indices. The Funds may invest in derivatives for hedging purposes.

Derivatives may relate to a wide variety of underlying references, such as commodities, stocks, bonds, interest rates, currency exchange rates, and related indices. Derivatives include futures contracts and options on futures contracts, forward-commitment transactions, options on securities, caps, floors, collars, swap contracts, and other financial instruments. Some derivatives, such as futures contracts and certain options, are traded on U.S. commodity and securities exchanges, while other derivatives, such as swap contracts, are privately negotiated and entered into in the over-the-counter market (“OTC”). The risks associated with the use of derivatives are different from, and possibly greater than, the risks associated with investing directly in securities and other traditional investments.

The use of a derivative involves the risk that a loss may be sustained as a result of the insolvency or bankruptcy of the other party to the contract (usually referred to as a “counterparty”) or the failure of the counterparty to make required payments or otherwise comply with the terms of the contract. Additionally, the use of credit derivatives can result in losses if FIMCO, or a Fund’s subadviser, as applicable, does not correctly evaluate the creditworthiness of the issuer on which the credit derivative is based.

Derivatives may be subject to liquidity risk, which exists when a particular derivative is difficult to purchase or sell. If a derivative transaction is particularly large or if the relevant market is relatively illiquid (as is the case with many OTC derivatives), it may not be possible to initiate a transaction or liquidate a position at an advantageous time or price.

Derivatives may be subject to pricing or “basis” risk, which exists when a particular derivative becomes extraordinarily expensive relative to historical prices or the prices of corresponding cash market instruments. Under certain market conditions, it may not be economically feasible to initiate a transaction or liquidate a position in time to avoid a loss or take advantage of an opportunity.

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FIRST INVESTORS EQUITY FUNDS

March 31, 2018

Because many derivatives have leverage or borrowing components, adverse changes in the value or level of the underlying asset, reference rate, or index can result in a loss substantially greater than the amount invested in the derivative itself. Certain derivatives have the potential for unlimited loss, regardless of the size of the initial investment.

Like most other investments, derivative instruments are subject to the risk that the market value of the instrument will change in a way detrimental to the Funds’ interest. The Funds bear the risk that FIMCO will incorrectly forecast future market trends or the values of assets, reference rates, indices, or other financial or economic factors in establishing derivative positions for the Funds. If FIMCO attempts to use a derivative as a hedge against, or as a substitute for, a portfolio investment, the Funds will be exposed to the risk that the derivative will have or will develop an imperfect or no correlation with the portfolio investment. This could cause substantial losses for the Funds. While hedging strategies involving derivative instruments can reduce the risk of loss, they can also reduce the opportunity for gain or even result in losses by offsetting favorable price movements in other investments. Many derivatives, in particular OTC derivatives, are complex and often valued subjectively. Improper valuations can result in increased cash payment requirements to counterparties or a loss of value to a Fund.

The following provides more information on specific types of derivatives and activity in the Funds.

Options Contracts—Some of the Funds may write covered call and put options on securities, derivative instruments, or currencies the Fund owns or in which it may invest. Writing put options tends to increase a Fund’s exposure to the underlying instrument. Writing call options tends to decrease a Fund’s exposure to the underlying instrument. When a Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. These liabilities are reflected as written options outstanding in the Statement of Assets and Liabilities. Payments received or made, if any, from writing options with premiums to be determined on a future date are reflected as such on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying future, swap, security or currency transaction to determine the realized gain or loss. A Fund, as a writer of an option, has no control over whether the underlying future, swap, security or currency may be sold (call) or purchased (put) and, as a result, bears the market risk of an unfavorable change in the price of the future, swap, security or currency underlying the written option. The risk exists that a Fund may not be able to enter into a closing transaction because of an illiquid market.

Some of the Funds may also purchase put and call options. Purchasing call options tends to increase a Fund’s exposure to the underlying instrument. Purchasing put options tends to decrease a Fund’s exposure to the underlying instrument. A Fund pays a premium which is included in its Statement of Assets and Liabilities as an investment and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. The risk associated with purchasing put and call options

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is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying future, swap, security or currency transaction to determine the realized gain or loss.

The premium amount and the number of option contracts written or purchased by the Funds during the period ended March 31, 2018, were as follows:

	Covered Call Strategy						Equity Income						Hedged U.S. Equity Opportunities
	Call Options						Call Options						Call Options						Put Options
	Number of Contracts			Premium Amount			Number of Contracts			Premium Amount			Number of Contracts			Premium Amount			Number of Contracts			Premium Amount
Options outstanding at September 30, 2017		(43,758	)	$	(6,258,541	)		(210	)	$	(18,984	)		108		$	726,822			(95	)	$	(342,648	)
Put options written		—			—			—			—			—			—			(80	)		(351,002	)
Put options purchased to cover		—			—			—			—			—			—			38			144,529
Put options written expirations		—			—			—			—			—			—			41			132,199
Put options purchased		—			—			—			—			80			616,765			—			—
Put options sold		—			—			—			—			(23	)		(163,370	)		—			—
Put options purchased expired		—			—			—			—			(54	)		(305,345	)		—			—
Call options written		(237,205	)		(25,242,817	)		(1,902	)		(176,968	)		—			—			—			—
Call options exercised		104			103,729			962			87,110			—			—			—			—
Call options purchased to cover		168,668			18,312,374			—			—			—			—			—			—
Call options expirations		59,278			4,981,383			1,150			108,842			—			—			—			—
Options outstanding at March 31, 2018		(52,913	)	$	(8,103,872	)		—		$	—			111		$	874,872			(96	)	$	(416,922	)

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Notes to Financial Statements (continued)

FIRST INVESTORS INCOME FUNDS

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

Derivative Investment Holdings Categorized by Risk Exposure – The following table sets forth the fair value and the location in the Statement of Assets and Liabilities of the Funds’ derivative contracts by primary risk exposure as of March 31, 2018:

	Asset derivatives			Liability derivatives
Risk exposure category	Statement of Assets and Liabilities location	Value		Statement of Assets and Liabilities location	Value
Options Contracts:
Covered Call Strategy	N/A		N/A	Written options, at value	$	4,961,596	Purchased Options, at value		N/A
Hedged U.S. Equity Opportunities	Purchased options, at value	$	847,910	Written options, at value	$	364,634	Purchased Options, at value	$	N/A

The following table sets forth the Funds’ realized gain (loss), as reflected in the Statement of Operations, by primary risk exposure and by type of derivative contract for the period ended March 31, 2018:

Risk exposure category	Written options			Purchased options
Options contracts:
Covered Call Strategy	$	(17,348,723	)		N/A
Equity Income	$	108,844			N/A
Hedged U.S. Equity Opportunities	$	(203,063	)	$	—

The following table sets forth the Funds’ change in unrealized appreciation (depreciation) by primary risk exposure and by type of derivative contract for the period ended March 31, 2018:

Risk exposure category	Covered Call Strategy		Equity Income			Hedged U.S. Equity Opportunities
Option contracts	$	5,259,659	$	(12,463	)	$	202,802

Futures Contracts—The Funds may enter into futures contracts including interest rate futures contracts and index futures, including futures on equity market indices and debt market indices. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Funds may use futures contracts to manage exposure to the stock market. Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily

264

variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations. Any open futures contracts at period end are presented in the Schedule of Investments under the caption “Futures Contracts”. The notional amount at value reflects each contract’s exposure to the underlying instrument or index at period end.

The Funds may enter into interest rate futures contracts on U.S. Treasury obligations and options thereon that are traded on a U.S. exchange. An interest rate futures contract provides for the future sale by one party and the purchase by another party of a specified amount of a particular financial instrument (debt security) at a specified price, date, time and place. Such investments may be used for, among other purposes, the purpose of hedging against changes in the value of a Fund’s portfolio securities due to anticipated changes in interest rates and market conditions. A public market exists for interest rate futures contracts covering a number of debt securities, including long-term U.S. Treasury Bonds, 10-year U.S. Treasury Notes and three-month U.S. Treasury Bills. No price is paid upon entering into futures contracts. Instead, upon entering into a futures contract, a Fund is required to deposit with its custodian in a segregated account in the name of the futures broker through which the transaction is effected an amount of cash or U.S. Government securities generally equal to 3%-5% or less of the contract value. This amount is known as “initial margin.”

An option on an interest rate futures contract generally gives the purchaser the right, in return for the premium paid, to assume a position in a futures contract at a specified exercise price at any time prior to the expiration date of the option. The Funds may purchase put and call options on interest rate futures contracts on U.S. Treasury obligations which are traded on a U.S. exchange as a hedge against changes in interest rates, and may enter into closing transactions with respect to such options to terminate existing positions. There is no guarantee such closing transactions can be effected. When writing a call or put option on a futures contract, margin also must be deposited in accordance with applicable exchange rules. Initial margin on futures contracts is in the nature of a performance bond or good-faith deposit that is returned to a Fund upon termination of the transaction, assuming all obligations have been satisfied. Under certain circumstances, such as periods of high volatility, a Fund may be required by an exchange to increase the level of its initial margin payment. Subsequent payments, called “variation margin,” to and from the broker, are made on a daily basis as the value of the futures position varies, a process known as “marking to market.” Variation margin does not involve borrowing to finance the futures transactions, but rather represents a daily settlement of a Fund’s obligation to or from a clearing organization. A Fund is also obligated to make initial and variation margin payments when it writes options on futures contracts.

To the extent that a Fund participates in the futures or options markets, it will incur investment risks and transaction costs to which it would not be subject absent the use of these strategies. The use of these strategies involves certain special risks, including: (1) dependence on the ability of the Funds’ investment adviser, FIMCO, or a Fund’s subadviser, as applicable, to predict correctly movements in the direction of interest rates and securities prices; (2) imperfect correlation

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FIRST INVESTORS INCOME FUNDS

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

between the price of futures contracts and options thereon and movements in the prices of the securities or currencies being hedged; (3) the fact that skills needed to use these strategies are different from those needed to select portfolio securities; (4) the leverage (if any) that is created by investing in the option or futures contract; and (5) the possible absence of a liquid secondary market for any particular instrument at any time. If FIMCO’s, or a Fund’s subadviser, as applicable, prediction of movements in the direction of the securities and interest rate markets is inaccurate, the adverse consequences to that Fund may leave it in a worse position than if such strategies were not used. Derivatives may be difficult to sell, unwind or value.

The amount of realized gains (losses) on futures contracts recognized by the Funds in the accompanying Statement of Operations for the six months March 31, 2018 are summarized in the following table:

	Statement of Operations
Futures Contracts	Realized Gain (Loss)
Balanced Income	$	206,109
Hedged U.S. Equity Opportunities	$	(1,838,816	)

The following table summarizes the value of the Funds’ futures contracts held as of March 31, 2018, and the related location in the accompanying Statement of Operations.

	Statement of Operations Location
Futures Contracts	Unrealized appreciation (depreciation) in value of investments
Balanced Income	$	(103,867	)
Hedged U.S. Equity Opportunities	$	1,355,640

Short Sales—The Long Short Fund may sell securities short. A short sale is a transaction in which a Fund sells securities it does not own but has borrowed in anticipation of a decline in the market price of the securities. The initial amount of a short sale is recorded as a liability which is marked-to-market daily. Fluctuations in the value of the short liability are recorded as unrealized gains or losses. The Fund realizes a gain or loss upon closing of the short sale (returning the security to the counterparty by way of purchase or delivery of a long position owned). Short sales by the Fund involves certain risks and special considerations. Possible losses from short sales differ from losses that could be incurred from a purchase of a security because losses from short sales may be unlimited, whereas losses from purchases cannot exceed the total amount invested. The use of short sales may also involve counterparty risk and leverage risk. The Fund is liable to the buyer for any dividends payable on securities while those securities are in a short position. These dividends are an

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expense of the Fund. The Fund designates collateral consisting of cash, U.S. Government securities or other liquid assets sufficient to collateralize the market value of short positions.

Proceeds from short sales are generally retained in cash accounts or invested in securities that are cash equivalents. With regard to securities borrowed as of March 31, 2018 pursuant to short sale arrangements, the Fund has a right to set off any assets held (including the borrowed securities) or obligations owed to the lender, in the event of the lender’s default, against any obligations owed by the lender to the Funds under any agreement or collateral document, including the collateral value of the Securities Loan Collateral, as that term is defined in the Securities Lending and Services Agreement between the Fund and the lender. At March 31, 2018, Long Short Fund had pledged $34,753,165 of securities and cash as collateral under such arrangement.

For the period ended March 31, 2018, the Long Short Fund received proceeds from securities sold short and paid funds for securities purchased to cover short positions in the amounts of $32,332,613 and $41,042,302, respectively.

Foreign Exchange Contracts—The International Opportunities Bond Fund, Global Fund and Hedged U.S. Equity Opportunities Fund may enter into foreign exchange contracts for the purchase or sale of foreign currencies at negotiated rates at future dates. These contracts are considered derivative instruments and a Fund may invest in them in order to hedge its currency exposure in bond positions or to gain currency exposure held by the Fund. A Fund could be exposed to risk if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. Foreign exchange contracts are “marked-to-market” daily at the applicable translation rate and the resulting unrealized gains and losses are reflected in the Funds’ assets. During the period, the Funds used currency forwards to hedge currency exposure from certain bonds as well as to gain currency exposure in certain countries.

Disclosures about Offsetting Assets and Liabilities—Disclosures about Offsetting Assets and Liabilities requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The guidance requires retrospective application for all comparative periods presented.

A Fund may mitigate credit risk with respect to OTC derivative counterparties through credit support annexes included with an International Swaps and Derivatives Association, Inc. Master Agreements or other Master Netting Agreements which are the standard contracts governing most derivative transactions between the Fund and each of its counterparties. These agreements may allow the Fund and each counterparty to offset certain derivative financial instruments’ payables and/or receivables against each other and/or with collateral, which is generally held by the Fund’s custodian. The amount of collateral moved to/from applicable counterparties is based upon minimum transfer amounts specified in the agreement. To the extent amounts due to the Fund from its counterparties are not fully collateralized contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance.

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Notes to Financial Statements (continued)

FIRST INVESTORS INCOME FUNDS

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

The Funds’ Statement of Assets and Liabilities (“SOAL”) presents financial instruments on a gross basis, therefore there are no net amounts and no offset amounts within the SOAL to present below. Gross amounts of the financial instruments, amounts related to financial instruments/cash collateral not offset in the SOAL and net amounts are presented below:

International Opportunities Bond

Description/Financial Instrument/Statement of Assets and Liabilities Category	Counterparty		Gross Amounts Presented in Statement of Assets and Liabilities			Financial Instruments*			Net Amount
Unrealized gain on foreign exchange contracts		BCI	$	3,522		$	(3,522	)	$	—
		CITI		69,653			(34,669	)		34,984
		GS		—			—			—
		HSBC		126,137			(126,137	)		—
		JPM		202,714			(36,140	)		166,574
		MSD		72,085			—			72,085
		Total	$	474,111		$	(200,468	)	$	273,643
Unrealized loss on foreign exchange contracts		BCI	$	(9,214	)	$	3,522		$	(5,692	)
		CITI		(34,669	)		34,669			—
		GS		(62,099	)		—			(62,099	)
		HSBC		(451,798	)		126,137			(325,661	)
		JPM		(36,140	)		36,140			—
		MSD		—			—			—
		Total	$	(593,920	)	$	200,468		$	(393,452	)

Hedged U.S. Equity Opportunities

Description/Financial Instrument/Statement of Assets and Liabilities Category	Counterparty		Gross Amounts Presented in Statement of Assets and Liabilities		Financial Instruments*		Net Amount
Unrealized gain on foreign exchange contracts		ANZ	$	494	$	—	$	494
		DMG		879		—		879
			$	1,373	$	—	$	1,373

* Amounts related to master netting arrangements (for example, ISDA) which have been determined by the Fund to be legally enforceable in the event of default and where certain other criteria are met in accordance with applicable offsetting accouting guidance.

Summary of abbreviations for counterparties appear at the end of the Portfolio of Investments for the respective Funds.

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During the period ended March 31, 2018, the volume of derivative activity for the Funds based on average monthly market values for forward foreign currency contracts (to buy) and for forward foreign currency contracts (to sell) were as follows:

	Forward Foreign Currency Contracts
	(to Buy)		(to Sell)
International Opportunities Bond	$	54,560,690	$	17,664,478
Hedged U.S. Equity Opportunities		65,679		184,282

Fair Value of Derivative Instruments—The fair value of derivative instruments held by the Funds as of March 31, 2018, was as follows:

	Assets Derivatives			Liability Derivatives
Derivatives not accounted for as hedging instruments under ASC 815	Statements of Assets and Liabilities Location			Statements of Assets and Liabilities Location
Foreign exchange and futures contracts:	Unrealized appreciation of foreign exchange contracts	Value		Unrealized depreciation of foreign exchange contracts	Value
International Opportunities Bond		$	474,111		$	593,920
Hedged U.S. Equity Opportunities		$	886,064		$	—

The effect of the Funds’ derivative instruments on the Statement of Operations are as follows:

Amount of Realized Gain or Loss Recognized on Derivatives
Derivatives not accounted for as hedging instruments under ASC 815	Net Realized Gain (Loss) on Foreign Exchange Transactions
Foreign exchange transactions:
International Opportunities Bond	$	485,391
Global	$	(16,196	)
Hedged U.S. Equity Opportunities	$	(4,343	)
International	$	(91,953	)

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Notes to Financial Statements (continued)

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FIRST INVESTORS EQUITY FUNDS

March 31, 2018

Amount of Change in Unrealized Appreciation or Depreciation Recognized on Derivatives
Derivatives not accounted for as hedging instruments under ASC 815	Net Unrealized Appreciation (Depreciation) on Foreign Exchange Transactions
Foreign exchange transactions:
International Opportunities Bond	$	(271,104	)
Global	$	17,537
Hedged U.S. Equity Opportunities	$	(2,148	)
International	$	10,536

6. High Yield Credit Risk—The investments of Floating Rate Fund and Fund For Income in high yield securities, whether rated or unrated, may be considered speculative and subject to greater market fluctuations and risks of loss of income and principal than lower-yielding, higher-rated, fixed-income securities. The risk of loss due to default by the issuer may be significantly greater for holders of high-yielding securities, because such securities are generally unsecured and are often subordinated to other creditors of the issuer.

7. Capital—The Trusts are authorized to issue an unlimited number of shares of beneficial interest without par value. The Trusts consist of the Funds listed on the cover page, each of which is a separate and distinct series of the Trusts. Each Fund has designated four classes of shares, Class A, Class B, Advisor Class and Institutional Class shares (each, a “Class”) except for Government Cash Management Fund which has designated only Class A, Class B and Institutional Class shares, Strategic Income Fund which has designated only Class A and Advisor Class shares and Balanced Income Fund, Floating Rate Fund, International Opportunities Bond Fund, Limited Duration Bond Fund, Covered Call Strategy Fund, Hedged U.S. Equity Opportunities Fund, Long Short Fund and Real Estate Fund which have designated only Class A, Advisor Class and Institutional Class shares. Advisor Class and Institutional Class shares became available for sale to the public, for those Funds in existence at the time, in May 2013 and October 2013, respectively. Not all classes of shares of each Fund may be available in all jurisdictions. Each share of each Class has an equal beneficial interest in the assets, has identical voting, dividend, liquidation and other rights and is subject to the same terms and conditions except that expenses allocated to a Class may be borne solely by that Class as determined by the Board and a Class may have exclusive voting rights with respect to matters affecting only that Class. Government Cash Management Fund’s Class A, Class B and Institutional Class shares are sold without an initial sales charge; however, its Class B shares may only be acquired through an exchange of Class B shares from another First Investors eligible Fund or through the reinvestment of dividends on Class B shares and are generally subject to a contingent deferred sales charge at the rate of 4% in the first year and declining to 0% over a six-year period, which is payable to FFS as underwriter of the Trusts. The shares sold by the other Funds have a public offering price that reflects different sales charges and expense levels. Class A shares are sold with an initial sales charge of up to 4% for the First Investors Income Funds, except for Floating

270

Rate Fund and Limited Duration Bond Fund which have an initial sales charge of up to 2.5% (effective June 12, 2017, the maximum sales charge on Class A shares was changed from 5.75% to 4% on the Income Funds, except for Floating Rate Fund and Limited Duration Bond Fund which was changed to 2.5%) and 5.75% for the First Investors Equity Funds and together with the Class B shares are subject to distribution plan fees as described in Note 3. Class B shares are sold without an initial sales charge, but are generally subject to a contingent deferred sales charge which declines in steps from 4% to 0% over a six-year period. Class B shares automatically convert into Class A shares after eight years. There are no sales charges associated with the purchase of Advisor Class and Institutional Class shares. Realized and unrealized gains or losses, investment income and expenses (other than distribution plan fees and shareholder servicing costs) are allocated daily to each class of shares based upon the relative proportion of net assets to each class.

8. Litigation—The Blue Chip and Equity Income Funds have been named, and have received notice that they may be putative members of the proposed defendant class of shareholders, in a lawsuit filed in the United States Bankruptcy Court for the District of Delaware on November 1, 2010, by the Official Committee of Unsecured Creditors of Tribune Company (the “Committee”). The Committee is seeking to recover all payments made to beneficial owners of common stock in connection with a leveraged buyout of the Tribune Company (“LBO”), including payments made in connection with a 2007 tender offer into which the Blue Chip and Equity Income Funds tendered their shares of common stock of the Tribune Company. On December 9, 2011, the Blue Chip Fund was reorganized into the Growth & Income Fund pursuant to a Plan of Reorganization and Termination, whereby all of the assets of the Blue Chip Fund were transferred to the Growth & Income Fund, the Growth & Income Fund assumed all of the liabilities of the Blue Chip Fund, including any contingent liabilities with respect to pending or threatened litigation or actions, and shareholders of Blue Chip Fund became shareholders of Growth & Income Fund. The adversary proceeding brought by the Committee has been transferred to the Southern District of New York and administratively consolidated with other similar suits as discussed below. In addition, on June 2, 2011, the Blue Chip and Equity Income Funds were named as defendants in a lawsuit brought in connection with the Tribune Company’s LBO by Deutsche Bank Trust Company Americas, in its capacity as successor indenture trustee for a certain series of Senior Notes, Law Debenture Trust Company of New York, in its capacity as successor indenture trustee for a certain series of Senior Notes, and Wilmington Trust Company, in its capacity as successor indenture trustee for the PHONES Notes (together, the “Bondholder Plaintiffs”) in the Supreme Court of the State of New York. The Blue Chip and Equity Income Funds have also been named in a similar suit filed on behalf of participants in Tribune defined-compensation plans (the “Retiree Plaintiffs”). As with the Bondholder Plaintiffs and the Committee, the Retiree Plaintiffs seek to recover payments of the proceeds of the LBO. (All of these suits have been removed to the United States District Court for the Southern District of New York and administratively consolidated with other substantially similar suits against other former Tribune shareholders (the “MDL Proceeding”)). On September 23, 2013, the Judge in the MDL Proceeding dismissed various state law constructive fraudulent transfer suits, resulting in the Funds being dismissed from the Bondholder and Retiree Plaintiffs’ actions. On

271

Notes to Financial Statements (continued)

FIRST INVESTORS INCOME FUNDS

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

September 30, 2013, counsel for the plaintiffs in those suits appealed the MDL Judge’s dismissal ruling to the Second Circuit. On March 24, 2016, the Second Circuit Court of Appeals affirmed the MDL Judge’s dismissal of the various state law constructive fraudulent transfer suits. In September 2016, the Bondholder and Retiree Plaintiffs petitioned the U.S. Supreme Court to review the Second Circuit’s decision. The Supreme Court has not yet ruled on that request. On January 9, 2017, the Tribune MDL judge granted the defendants’ motion to dismiss the Committee lawsuit alleging a single claim for intentional fraudulent transfer. An appeal of that decision to the Second Circuit is expected, but has not yet been made. The extent of the Funds’ potential liability in any such actions has not been determined. The Funds have been advised by counsel that the Funds could be held liable to return all or part of the proceeds received in any of these actions, as well as interest and court costs, even though the Funds had no knowledge of, or participation in, any misconduct. The Equity Income Fund received proceeds of $1,526,566 in connection with the LBO, representing 0.24% of its net assets as of March 31, 2018. The Blue Chip Fund received proceeds of $790,772 in connection with the LBO, representing 0.04% of the net assets of Growth & Income Fund as of March 31, 2018. The Equity Income and Growth & Income Funds cannot predict the outcomes of these proceedings, and thus have not accrued any of the amounts sought in the various actions in the accompanying financial statements.

9. Name Change—Effective January 31, 2018, the First Investors Limited Duration High Quality Bond Fund changed its name to First Investors Limited Duration Bond Fund. The purpose of the name change is to reflect some changes to the Fund’s investment strategies.

10. New Fund—On February 22, 2018, the Board approved the establishment of a new series of the First Investors Equity Funds, First Investors Premium Income Fund (the “Premium Income Fund”). The Fund is registered under the Investment Company Act of 1940 as a diversified fund and is authorized to issue an unlimited number of shares of beneficial interest of Class A, Advisor Class and Institutional Class. The primary investment objective of the Fund is to generate income. The Fund commenced operations on April 2, 2018.

11. Reorganizations of Government Fund into Limited Duration Bond Fund and Balanced Income Fund into Total Return Fund—On April 19, 2018: (a) the Board of Trustees (the “Board”) of First Investors Income Funds (the “Income Trust”) approved a Plan of Reorganization and Termination (the “Plan”) pursuant to which First Investors Government Fund (“Government Fund”), a series of the Income Trust, would be reorganized into First Investors Limited Duration Bond Fund (“Limited Duration Bond Fund”), also a series of the Income Trust; and (b) the Board of the Income Trust and the Board of First Investors Equity Funds (the “Equity Trust”) approved an Agreement and Plan of Reorganization and Termination (the “Agreement”) pursuant to which First Investors Balanced Income Fund (“Balanced Income Fund”), a series of the Income Trust, would be reorganized into First Investors Total Return Fund (“Total Return Fund”), a series of the Equity Trust. Each of these transactions is referred to as a Reorganization.

Reorganization of Government Fund into Limited Duration Bond Fund

Pursuant to the Plan, (a) Class A, Advisor Class and Institutional Class shares of Government Fund held by each shareholder of Government Fund will be exchanged for Class A, Advisor

272

Class and Institutional Class shares, respectively, of Limited Duration Bond Fund and (b) Class B shares of Government Fund held by each shareholder of Government Fund will be exchanged for Class A shares of Limited Duration Bond Fund, in each case with the same aggregate net asset value as the shareholder had in Government Fund as of the scheduled close of regular trading on the New York Stock Exchange on the closing date of the Reorganization. Upon the completion of the Reorganization, shareholders of Government Fund will become shareholders of Limited Duration Bond Fund and Government Fund will then be terminated. The Reorganization is expected to occur during the third quarter of 2018. A shareholder vote is not required to reorganize Government Fund into Limited Duration Bond Fund. Government Fund shareholders will receive, prior to the Reorganization, a Prospectus and Information Statement that will describe, among other things, the investment objectives, policies and risks of each Fund in the Reorganization and the terms of the Plan. Government Fund will continue sales, redemptions and exchanges of its shares as described in its prospectus until the closing date of the Reorganization.

Reorganization of Balanced Income Fund into Total Return Fund

Shareholders of Balanced Income Fund will be asked to consider and approve the Agreement at a special meeting of shareholders expected to be held during the third calendar quarter of 2018. Balanced Income Fund shareholders will receive, prior to the shareholder meeting, a Prospectus and Proxy Statement that that will describe, among other things, the investment objectives, policies and risks of each Fund in the Reorganization and the terms of the Agreement. If the Agreement is approved by shareholders of Balanced Income Fund, the Reorganization will take place during the third or fourth calendar quarter of 2018 and, pursuant to the Agreement, Class A, Advisor Class and Institutional Class shares of Balanced Income Fund held by each shareholder of Balanced Income Fund will be exchanged for Class A, Advisor Class and Institutional Class shares, respectively, of Total Return Fund with the same aggregate net asset value as the shareholder had in Balanced Income Fund as of the scheduled close of regular trading on the New York Stock Exchange on the closing date of the Reorganization. Upon the completion of the Reorganization, shareholders of Balanced Income Fund will become shareholders of Total Return Fund and Balanced Income Fund will then be terminated. Balanced Income Fund will continue sales, redemptions and exchanges of its shares as described in its prospectus until the closing date of the Reorganization.

The exchange of shares in each Reorganization is intended to be a tax-free transaction for federal income tax purposes and, as such, is not expected to be considered a taxable event. It is anticipated that no sales loads, commissions or other transaction fees will be imposed on shareholders of Government Fund or Balanced Income Fund in connection with the Reorganizations.

12. Plan of Liquidation and Termination of First Investors Real Estate Fund—On May 17, 2018, the Board of Trustees of the First Investors Equity Funds (the “Trust”), upon the recommendation of Foresters Investment Management Company, Inc., the investment adviser for the First Investors Funds, approved a plan to liquidate and terminate (the “Liquidation”)

273

Notes to Financial Statements (continued)

FIRST INVESTORS INCOME FUNDS

FIRST INVESTORS EQUITY FUNDS

March 31, 2018

the First Investors Real Estate Fund (the “Fund”), a series of the Trust. It is anticipated that the Liquidation will be completed on or about June 22, 2018 (the “Liquidation Date”). A shareholder vote is not required to approve the Liquidation.

Any shares of the Fund outstanding on the Liquidation Date will be automatically redeemed on that date. Effective as of the regularly scheduled close of regular trading on the New York Stock Exchange on May 18, 2018, the Fund will no longer accept investments from new shareholders. Existing shareholders can continue to make purchases until the Liquidation Date. The Fund reserves the right, in its discretion, to modify the extent to which sales are permitted or limited prior to the Liquidation Date. Redemption orders received in proper form as described in the Fund’s prospectus after the regularly scheduled close of regular trading on the New York Stock Exchange on May 18, 2018 will not be subject to any contingent deferred sales charges or other sales charges imposed by the Fund, except that shares held through a broker-dealer or other financial intermediary, such as omnibus accounts, may be subject to sales charges in accordance with the protocols of the financial intermediary.

At any time prior to the Liquidation Date, shareholders may redeem their shares of the Fund pursuant to the procedures set forth in the prospectus under “Shareholder Information.” Shareholders may also exchange their shares prior to the Liquidation Date for shares of another First Investors Fund without paying a sales charge, subject to minimum investment account requirements and other restrictions on exchanges as described in the prospectus under “Shareholder Information.” Any such redemption or exchange of Fund shares for shares of another fund will generally be considered a taxable event for federal income tax purposes, except exchanges in a tax-advantaged retirement plan or account. A letter will be sent to shareholders who hold shares directly with the Fund, setting forth various options and instructions with respect to the Liquidation and the distribution of their redemption proceeds. Shareholders who hold their shares in the Fund through a financial intermediary should contact their financial representative to discuss their options with respect to the Liquidation and the distribution of such shareholders’ redemption proceeds.

It is expected that as soon as practicable following the Liquidation, the cash proceeds of the Liquidation will be distributed to shareholders of the Fund in complete redemption of their shares, after all charges, taxes, expenses and liabilities of the Fund have been paid or accounted for; except that for certain retirement accounts, any proceeds will generally be exchanged for shares of the First Investors Government Cash Management Fund, subject to any operational requirements of a particular shareholder account. For federal income tax purposes, the automatic redemption on the Liquidation Date will generally be considered a taxable event like any other redemption of shares. Shareholders should consult with their tax advisors for more information about the tax consequences of the Liquidation to them, including any federal, state, local, foreign or other tax consequences.

In order to provide for an orderly liquidation and satisfy redemptions in anticipation of the Liquidation, the Fund likely will no longer pursue its investment objectives and strategies between now and the Liquidation Date.

274

13. Subsequent Events—Subsequent events occurring after March 31, 2018 have been evaluated for potential impact to this report through the date the financial statements were issued. There were no subsequent events to report that would have a material impact on the Funds’ financial statements.

275

Financial Highlights

FIRST INVESTORS INCOME FUNDS

The following table sets forth the per share operating performance data for a share outstanding, total return, ratios to average net assets and other supplemental data for each fiscal year ended September 30 unless otherwise indicated.

			P E R  S H A R E  D A T A
				Investment Operations									Less Distributions from
	Net Asset Value, Beginning of Period			Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total From Investment Operations			Net Investment Income		Net Realized Gain		Total Distributions		Net Asset Value, End of Period
BALANCED INCOME FUND
Class A
2016 (g)	$	10.00		$	.17	(c)	$	.68		$	.85		$	.15	$	—	$	.15	$	10.70
2017		10.70			.18	(c)		.36			.54			.23		.01		.24		11.00
2018 (l)		11.00			.11	(c)		(.08	)		.03			.12		.11		.23		10.80
Advisor Class
2016 (g)		10.00			.20	(c)		.69			.89			.16		—		.16		10.73
2017		10.73			.48	(c)		.09			.57			.24		.01		.25		11.05
2018 (l)		11.05			.12	(c)		(.07	)		.05			.14		.11		.25		10.85
Institutional Class
2016 (g)		10.00			.21	(c)		.69			.90			.17		—		.17		10.73
2017		10.73			.28	(c)		.30			.58			.26		.01		.27		11.04
2018 (l)		11.04			.14	(c)		(.07	)		.07			.15		.11		.26		10.85
FLOATING RATE FUND
Class A
2014 (i)	$	10.00		$	.21	(c)	$	(.10	)	$	.11		$	.23		—	$	.23	$	9.88
2015		9.88			.26	(c)		(.27	)		(.01	)		.29		—		.29		9.58
2016		9.58			.27	(c)		.09			.36			.28		—		.28		9.66
2017		9.66			.27	(c)		.05			.32			.31		—		.31		9.67
2018 (l)		9.67			.14	(c)		.02			.16			.15		—		.15		9.68
Advisor Class
2014 (i)		10.00			.25	(c)		(.11	)		.14			.26		—		.26		9.88
2015		9.88			.28	(c)		(.26	)		.02			.32		—		.32		9.58
2016		9.58			.29	(c)		.08			.37			.30		—		.30		9.65
2017		9.65			.26	(c)		.09			.35			.32		—		.32		9.68
2018 (l)		9.68			.15	(c)		.01			.16			.16		—		.16		9.68
Institutional Class
2014 (i)		10.00			.27	(c)		(.13	)		.14			.28		—		.28		9.86
2015		9.86			.30	(c)		(.25	)		.05			.34		—		.34		9.57
2016		9.57			.31	(c)		.08			.39			.32		—		.32		9.64
2017		9.64			.26	(c)		.11			.37			.34		—		.34		9.67
2018(1)		9.67			.16	(c)		.02			.18			.17		—		.17		9.68

See notes to financial statements

276

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived or Assumed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income			Expenses***			Net Investment Income			Portfolio Turnover Rate
	8.55	%††	$	29,676		1.15	%†		1.15	%†		1.61	%†		2.21	%†		.55	%†		57	%††
	5.11			46,608		1.15			1.15			1.75			1.54			1.36			51
	.28	††		53,538		1.15	†		1.15	†		2.02	†		1.48	†		1.69	†		16	††
	8.97	††		109		.82	†		.82	†		1.91	†		1.98	†		.75	†		57	††
	5.42			11		.82			.82			1.93			1.14			1.61			51
	.42	††		50		.82	†		.82	†		2.11	†		1.25	†		1.68	†		16	††
	9.08	††		157		.69	†		.69	†		2.04	†		1.93	†		.80	†		57	††
	5.46			141		.69			.69			2.15			1.14			1.71			51
	.59	††		175		.69	†		.69	†		2.44	†		1.07	†		2.06	†		16	††
	1.12	%††	$	50,361		1.10	%†		1.10	%†		2.21	%†		1.58	%†		1.73	%†		26	%††
	(.08	)		57,101		1.10			1.10			2.72			1.33			2.49			49
	3.69			61,243		1.10			1.10			2.86			1.27			2.69			38
	3.47			66,769		1.10			1.10			2.90			1.24			2.76			89
	1.70	††		64,807		1.10	†		1.10	†		2.99	†		1.24	†		2.85	†		26	††
	1.43	††		34,942		.90	†		.90	†		2.63	†		.95	†		2.58	†		26	††
	.18			50,122		.90			.90			2.92			1.03			2.79			49
	3.92			61,844		.90			.90			3.06			.98			2.98			38
	3.70			98,958		.90			.90			3.07			.92			3.05			89
	1.70	††		117,949		.90	†		.90	†		3.17	†		.90	†		3.17	†		26	††
	1.36	††		5,329		.70	†		.70	†		2.76	†		1.06	†		2.40	†		26	††
	.47			10,458		.70			.70			3.17			.90			2.97			49
	4.14			11,456		.70			.70			3.27			.83			3.14			38
	3.87			21,277		.70			.70			3.23			.80			3.13			89
	1.88	††		25,454		.70	†		.70	†		3.37	†		.78	†		3.29	†		26	††

277

Financial Highlights (continued)

FIRST INVESTORS INCOME FUNDS

	P E R  S H A R E  D A T A
			Investment Operations									Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total From Investment Operations			Net Investment Income		Net Realized Gain		Total Distributions		Net Asset Value, End of Period
FUND FOR INCOME
Class A
2013	$	2.60	$	.15		$	(.01	)	$	.14		$	.15		—	$	.15	$	2.59
2014		2.59		.12	(c)		.02			.14			.14		—		.14		2.59
2015		2.59		.11	(c)		(.18	)		(.07	)		.13		—		.13		2.39
2016		2.39		.11	(c)		.10			.21			.12		—		.12		2.48
2017		2.48		.11	(c)		.05			.16			.12		—		.12		2.52
2018 (l)		2.52		.05	(c)		(.07	)		(.02	)		.06		—		.06		2.44
Class B
2013		2.60		.13			(.01	)		.12			.13		—		.13		2.59
2014		2.59		.10	(c)		.02			.12			.12		—		.12		2.59
2015		2.59		.09	(c)		(.18	)		(.09	)		.11		—		.11		2.39
2016		2.39		.09	(c)		.10			.19			.10		—		.10		2.48
2017		2.48		.10	(c)		.05			.15			.10		—		.10		2.53
2018 (l)		2.53		.04	(c)		(.07	)		(.03	)		.05		—		.05		2.45
Advisor Class
2013 (k)		2.66		.06			(.05	)		.01			.08		—		.08		2.59
2014		2.59		.12	(c)		.02			.14			.14		—		.14		2.59
2015		2.59		.12	(c)		(.18	)		(.06	)		.14		—		.14		2.39
2016		2.39		.12	(c)		.10			.22			.13		—		.13		2.48
2017		2.48		.12	(c)		.05			.17			.13		—		.13		2.52
2018 (l)		2.52		.06	(c)		(.07	)		(.01	)		.07		—		.07		2.44
Institutional Class
2013 (k)		2.66		.03			(.01	)		.02			.08		—		.08		2.60
2014		2.60		.13	(c)		.02			.15			.15		—		.15		2.60
2015		2.60		.12	(c)		(.17	)		(.05	)		.15		—		.15		2.40
2016		2.40		.12	(c)		.10			.22			.13		—		.13		2.49
2017		2.49		.13	(c)		.05			.18			.13		—		.13		2.54
2018 (l)		2.54		.06	(c)		(.07	)		(.01	)		.07		—		.07		2.46

See notes to financial statements

278

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived or Assumed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income			Expenses***			Net Investment Income			Portfolio Turnover Rate
	5.55	%	$	647,603		1.23	%		1.23	%		5.17	%		1.25	%		5.15	%		60	%
	5.38			621,618		1.21			1.21			4.67			1.23			4.65			47
	(2.85	)		567,249		1.21			1.21			4.39			1.23			4.37			47
	9.07			571,028		1.22			1.22			4.76			1.24			4.74			55
	6.79			572,631		1.21			1.21			4.57			1.23			4.55			65
	(.73	)††		539,443		1.21	†		1.21	†		4.63	†		1.23	†		4.61	†		38	††
	4.84			5,001		1.99			1.99			4.42			2.01			4.40			60
	4.67			4,690		2.02			2.02			3.86			2.04			3.84			47
	(3.65	)		3,376		2.01			2.01			3.60			2.03			3.58			47
	7.99			2,923		2.04			2.05			3.94			2.07			3.92			55
	6.15			2,356		1.98			1.98			3.79			2.00			3.77			65
	(1.11	)††		1,956		2.02	†		2.02	†		3.83	†		2.04	†		3.81	†		38	††
	.23	††		1		1.03	†		1.03	†		4.59	†		5.13	†		.49	†		60	††
	5.42			31,132		.91			.91			4.83			.93			4.81			47
	(2.47	)		41,699		.93			.93			4.65			.95			4.63			47
	9.34			68,198		.93			.94			5.02			.96			5.00			55
	7.05			73,403		.94			.94			4.84			.96			4.82			65
	(.60	)††		85,734		.95	†		.95	†		4.92	†		.97	†		4.90	†		38	††
	.66	††		18,575		.81	†		.81	†		4.93	†		.83	†		4.91	†		60	††
	5.59			42,941		.78			.78			5.07			.80			5.05			47
	(2.28	)		51,704		.78			.78			4.81			.80			4.79			47
	9.58			62,340		.79			.79			5.19			.81			5.17			55
	7.59			78,784		.78			.78			4.99			.80			4.97			65
	(.51	)††		51,742		.79	†		.79	†		5.04	†		.81	†		5.02	†		38	††

279

Financial Highlights (continued)

FIRST INVESTORS INCOME FUNDS

	P E R S H A R E D A T A
			Investment Operations									Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total From Investment Operations			Net Investment Income		Net Realized Gain		Total Distributions		Net Asset Value, End of Period
GOVERNMENT FUND
Class A
2013	$	11.52	$	.17		$	(.43	)	$	(.26	)	$	.32		—	$	.32	$	10.94
2014		10.94		.19	(c)		—			.19			.26		—		.26		10.87
2015		10.87		.17	(c)		.04			.21			.25		—		.25		10.83
2016		10.83		.15	(c)		.08			.23			.21		—		.21		10.85
2017		10.85		.14	(c)		(.35	)		(.21	)		.20		—		.20		10.44
2018 (l)		10.44		.08	(c)		(.22	)		(.14	)		.10		—		.10		10.20
Class B
2013		11.51		.07			(.42	)		(.35	)		.24		—		.24		10.92
2014		10.92		.10	(c)		(.01	)		.09			.17		—		.17		10.84
2015		10.84		.08	(c)		.03			.11			.15		—		.15		10.80
2016		10.80		.06	(c)		.09			.15			.12		—		.12		10.83
2017		10.83		.07	(c)		(.36	)		(.29	)		.11		—		.11		10.43
2018 (l)		10.43		.04	(c)		(.24	)		(.20	)		.05		—		.05		10.18
Advisor Class
2013 (k)		11.29		.10			(.30	)		(.20	)		.15		—		.15		10.94
2014		10.94		.23	(c)		(.04	)		.19			.27		—		.27		10.86
2015		10.86		.21	(c)		.03			.24			.26		—		.26		10.84
2016		10.84		.18	(c)		.09			.27			.24		—		.24		10.87
2017		10.87		.23	(c)		(.41	)		(.18	)		.23		—		.23		10.46
2018 (l)		10.46		.10	(c)		(.23	)		(.13	)		.12		—		.12		10.21
Institutional Class
2013 (k)		11.29		.14			(.31	)		(.17	)		.16		—		.16		10.96
2014		10.96		.24	(c)		(.01	)		.23			.29		—		.29		10.90
2015		10.90		.22	(c)		.04			.26			.28		—		.28		10.88
2016		10.88		.20	(c)		.08			.28			.26		—		.26		10.90
2017		10.90		.10	(c)		(.24	)		(.14	)		.25		—		.25		10.51
2018 (l)		10.51		.11	(c)		(.23	)		(.12	)		.12		—		.12		10.27

See notes to financial statements

280

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived, Assumed or Reimbursed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income			Expenses***			Net Investment Income (Loss)			Portfolio Turnover Rate
	(2.29	)%	$	355,264		1.10	%		1.10	%		1.57	%		1.21	%		1.46	%		101	%
	1.71			289,928		1.07			1.07			1.76			1.18			1.65			138
	1.90			265,856		1.08			1.08			1.60			1.19			1.49			82
	2.16			258,545		1.08			1.08			1.40			1.19			1.29			97
	(1.92	)		232,982		1.08			1.08			1.35			1.21			1.22			61
	(1.33	)††		215,283		1.07	†		1.07	†		1.60	†		1.23	†		1.44	†		25	††
	(3.06	)		4,717		1.84			1.84			.82			1.95			.71			101
	.86			3,255		1.89			1.89			.94			2.00			.83			138
	1.04			2,514		1.91			1.91			.78			2.02			.67			82
	1.38			2,062		1.89			1.90			.59			2.01			.48			97
	(2.67	)		1,043		1.92			1.92			.51			2.04			.39			61
	(1.87	)††		679		1.98	†		1.98	†		.68	†		2.14	†		.52	†		25	††
	(1.75	)††		1		.95	†		.95	†		1.68	†		5.17	†		(2.54	)†		101	††
	1.73			33,699		.73			.73			2.06			.84			1.95			138
	2.21			50,190		.78			.78			1.89			.89			1.78			82
	2.50			64,370		.78			.78			1.70			.89			1.59			97
	(1.61	)		32,889		.82			.82			1.64			.94			1.52			61
	(1.29	)††		37,707		.80	†		.80	†		1.87	†		.96	†		1.71	†		25	††
	(1.54	)††		4,656		.68	†		.68	†		2.14	†		.81	†		2.01	†		101	††
	2.08			10,753		.65			.65			2.17			.76			2.06			138
	2.38			14,027		.65			.65			2.03			.76			1.92			82
	2.62			7,951		.65			.65			1.85			.76			1.74			97
	(1.18	)		538		.63			.63			1.67			.77			1.53			61
	(1.11	)††		8,672		.64	†		.64	†		2.04	†		.80	†		1.88	†		25	††

281

Financial Highlights (continued)

FIRST INVESTORS INCOME FUNDS

	P E R S H A R E D A T A
			Investment Operations							Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments		Total From Investment Operations		Net Investment Income			Net Realized Gain		Total Distributions			Net Asset Value, End of Period
GOVERNMENT CASH MANAGEMENT FUND(f)
Class A
2013	$	1.00	$	—			—	$	—	$	—			—	$	—		$	1.00
2014		1.00		—			—		—		—			—		—			1.00
2015		1.00		—			—		—		—			—		—			1.00
2016		1.00		—			—		—		—			—		—			1.00
2017		1.00		.00	(c)		—		.00		.00	(d)		—		.00	(d)		1.00
2018 (l)		1.00		.00	(c)		—		.00		.00	(d)		—		.00	(d)		1.00
Class B
2013		1.00		—			—		—		—			—		—			1.00
2014		1.00		—			—		—		—			—		—			1.00
2015		1.00		—			—		—		—			—		—			1.00
2016		1.00		—			—		—		—			—		—			1.00
2017		1.00		—			—		—		—			—		—			1.00
2018 (l)		1.00		—			—		—		—			—		—			1.00
Institutional Class
2013 (k)		1.00		—			—		—		—			—		—			1.00
2014		1.00		—			—		—		—			—		—			1.00
2015		1.00		—			—		—		—			—		—			1.00
2016		1.00		—			—		—		—			—		—			1.00
2017		1.00		.00	(c)		—		.00		.00	(d)		—		.00	(d)		1.00
2018 (l)		1.00		.00	(c)		—		.00		.00	(d)		—		.00	(d)		1.00

See notes to financial statements

282

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived or Assumed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income			Expenses***			Net Investment Income (Loss)			Portfolio Turnover Rate
	0.00	%	$	130,272		.11	%		.11	%		.00	%		.97	%		(.86	)%	N/A
	0.00			108,088		.08			.08			.00			1.02			(.94	)	N/A
	0.00			109,566		.10			.10			.00			1.08			(.98	)	N/A
	0.00			122,037		.33			.33			.00			1.05			(.72	)	N/A
	0.08			127,079		.60			.60			.08			1.02			(.34	)	N/A
	0.32	††		131,662		.60	†		.60	†		.65	†		1.01	†		.24	†	N/A
	0.00			571		.12			.12			.00			1.72			(1.60	)	N/A
	0.00			404		.08			.08			.00			1.64			(1.56	)	N/A
	0.00			287		.10			.10			.00			1.72			(1.62	)	N/A
	0.00			248		.33			.33			.00			1.77			(1.44	)	N/A
	0.00			161		.64			.64			.00			1.76			(1.12	)	N/A
	0.00	††		181		1.25	†		1.25	†		.00	†		1.85	†		(.60	)†	N/A
	0.00	††		1		.15	†		.15	†		.00	†		2.60	†		(2.45	)†	N/A
	0.00			2,595		.08			.08			.00			.66			(.58	)	N/A
	0.00			2,267		.10			.10			.00			.67			(.57	)	N/A
	0.00			2,844		.33			.33			.00			.68			(.35	)	N/A
	0.07			2,394		.60			.60			.06			.68			(.02	)	N/A
	0.32	††		2,352		.60	†		.60	†		.65	†		.68	†		.57	†	N/A

283

Financial Highlights (continued)

FIRST INVESTORS INCOME FUNDS

	P E R S H A R E D A T A
			Investment Operations									Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total From Investment Operations			Net Investment Income		Net Realized Gain		Total Distributions		Net Asset Value, End of Period
INTERNATIONAL OPPORTUNITIES BOND FUND
Class A
2013	$	10.22	$	.25		$	(.32	)	$	(.07	)	$	.30	$	.01	$	.31	$	9.84
2014		9.84		.21	(c)		.07			.28			.27		—		.27		9.85
2015		9.85		.12	(c)		(1.06	)		(.94	)		.28		—		.28		8.63
2016		8.63		.20	(c)		.51			.71			.13		—		.13		9.21
2017		9.21		.22	(c)		.21			.43			.15		—		.15		9.49
2018 (l)		9.49		.12	(c)		.24			.36			.30		—		.30		9.55
Advisor Class
2013 (k)		10.23		.08			(.31	)		(.23	)		.15		—		.15		9.85
2014		9.85		.24	(c)		.04			.28			.28		—		.28		9.85
2015		9.85		.14	(c)		(1.06	)		(.92	)		.29		—		.29		8.64
2016		8.64		.23	(c)		.51			.74			.13		—		.13		9.25
2017		9.25		.24	(c)		.23			.47			.16		—		.16		9.56
2018 (l)		9.56		.14	(c)		.23			.37			.30		—		.30		9.63
Institutional Class
2013 (k)		10.23		.12			(.35	)		(.23	)		.15		—		.15		9.85
2014		9.85		.25	(c)		.06			.31			.28		—		.28		9.88
2015		9.88		.17	(c)		(1.08	)		(.91	)		.30		—		.30		8.67
2016		8.67		.24	(c)		.52			.76			.14		—		.14		9.29
2017		9.29		.22	(c)		.27			.49			.19		—		.19		9.59
2018 (l)		9.59		.15	(c)		.23			.38			.30		—		.30		9.67

See notes to financial statements

284

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived or Assumed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income (Loss)			Expenses***			Net Investment Income (Loss)			Portfolio Turnover Rate
	(0.72	)%	$	99,161		1.30	%		1.30	%		.68	%		1.83	%		.15	%		53	%
	2.84			80,197		1.30			1.30			2.06			1.41			1.95			76
	(9.72	)		69,394		1.30			1.30			1.29			1.38			1.21			61
	8.30			65,456		1.38			1.38			2.29			1.41			2.26			72
	4.70			59,782		1.41			1.41			2.35			N/A			N/A			76
	3.87	††		62,032		1.41	†		1.41	†		2.56	†		N/A			N/A			33	††
	(2.26	)††		1		1.07	†		1.07	†		(1.43	)†		5.23	†		(5.59	)†		53	††
	2.81			33,851		1.10			1.10			2.21			N/A			N/A			76
	(9.51	)		50,912		1.04			1.04			1.56			N/A			N/A			61
	8.70			50,749		1.08			1.08			2.60			N/A			N/A			72
	5.07			68,162		1.11			1.11			2.66			N/A			N/A			76
	4.04	††		83,212		1.10	†		1.10	†		2.87	†		N/A			N/A			33	††
	(2.26	)††		6,998		.96	†		.96	†		(1.31	)†		N/A			N/A			53	††
	3.19			16,014		.93			.93			2.43			N/A			N/A			76
	(9.36	)		19,097		.90			.90			1.69			N/A			N/A			61
	8.85			8,289		.93			.93			2.75			N/A			N/A			72
	5.27			8,669		.94			.95			2.80			N/A			N/A			76
	4.04	††		8,944		.94	†		.94	†		3.03	†		N/A			N/A			33	††

285

Financial Highlights (continued)

FIRST INVESTORS INCOME FUNDS

	P E R S H A R E D A T A
			Investment Operations									Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total From Investment Operations			Net Investment Income		Net Realized Gain		Total Distributions		Net Asset Value, End of Period
INVESTMENT GRADE FUND
Class A
2013	$	10.27	$	.35		$	(.46	)	$	(.11	)	$	.38		—	$	.38	$	9.78
2014		9.78		.31	(c)		.22			.53			.39		—		.39		9.92
2015		9.92		.28	(c)		(.17	)		.11			.39		—		.39		9.64
2016		9.64		.27	(c)		.35			.62			.36		—		.36		9.90
2017		9.90		.26	(c)		(.17	)		.09			.33		—		.33		9.66
2018 (l)		9.66		.13	(c)		(.28	)		(.15	)		.16		—		.16		9.35
Class B
2013		10.26		.27			(.45	)		(.18	)		.32		—		.32		9.76
2014		9.76		.22	(c)		.22			.44			.33		—		.33		9.87
2015		9.87		.20	(c)		(.17	)		.03			.33		—		.33		9.57
2016		9.57		.19	(c)		.34			.53			.27		—		.27		9.83
2017		9.83		.19	(c)		(.18	)		.01			.23		—		.23		9.61
2018 (l)		9.61		.09	(c)		(.27	)		(.18	)		.12		—		.12		9.31
Advisor Class
2013 (k)		10.23		.08			(.34	)		(.26	)		.19		—		.19		9.78
2014		9.78		.34	(c)		.20			.54			.40		—		.40		9.92
2015		9.92		.31	(c)		(.16	)		.15			.40		—		.40		9.67
2016		9.67		.30	(c)		.34			.64			.37		—		.37		9.94
2017		9.94		.26	(c)		(.14	)		.12			.35		—		.35		9.71
2018 (l)		9.71		.14	(c)		(.26	)		(.12	)		.18		—		.18		9.41
Institutional Class
2013 (k)		10.23		.14			(.38	)		(.24	)		.20		—		.20		9.79
2014		9.79		.35	(c)		.23			.58			.43		—		.43		9.94
2015		9.94		.32	(c)		(.17	)		.15			.43		—		.43		9.66
2016		9.66		.31	(c)		.35			.66			.40		—		.40		9.92
2017		9.92		.31	(c)		(.18	)		.13			.37		—		.37		9.68
2018 (l)		9.68		.15	(c)		(.27	)		(.12	)		.18		—		.18		9.38

See notes to financial statements

286

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived, Assumed or Reimbursed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income			Expenses***			Net Investment Income (Loss)			Portfolio Turnover Rate
	(1.10	)%	$	543,955		1.07	%		1.07	%		3.20	%		1.18	%		3.09	%		33	%
	5.50			475,090		1.05			1.05			3.11			1.16			3.00			49
	1.12			458,704		1.04			1.04			2.85			1.15			2.74			36
	6.55			477,010		1.04			1.05			2.78			1.15			2.68			37
	.97			462,999		1.04			1.04			2.68			1.15			2.57			52
	(1.53	)††		437,021		1.05	†		1.05	†		2.68	†		1.16	†		2.57	†		28	††
	(1.82	)		6,161		1.84			1.84			2.42			1.94			2.32			33
	4.53			4,727		1.92			1.92			2.24			2.03			2.13			49
	.27			3,623		1.92			1.92			1.98			2.03			1.87			36
	5.61			2,907		1.92			1.92			1.91			2.03			1.80			37
	.12			2,181		1.90			1.90			1.84			2.01			1.73			52
	(1.89	)††		1,735		1.92	†		1.92	†		1.81	†		2.03	†		1.70	†		28	††
	(2.53	)††		1		.95	†		.95	†		2.64	†		5.17	†		(1.58	)†		33	††
	5.61			44,351		.69			.69			3.38			.80			3.27			49
	1.53			63,614		.73			.73			3.17			.84			3.06			36
	6.78			83,659		.74			.74			3.08			.85			2.97			37
	1.32			136,316		.72			.72			2.99			.82			2.89			52
	(1.27	)††		156,739		.72	†		.72	†		3.02	†		.82	†		2.92	†		28	††
	(2.37	)††		9,326		.66	†		.66	†		3.06	†		.77	†		2.95	†		33	††
	5.98			22,269		.63			.63			3.51			.74			3.40			49
	1.48			15,025		.63			.63			3.26			.74			3.15			36
	6.97			31,395		.63			.63			3.17			.74			3.06			37
	1.41			26,127		.63			.63			3.10			.74			2.99			52
	(1.24	)††		25,816		.64	†		.64	†		3.10	†		.74	†		3.00	†		28	††

287

Financial Highlights (continued)

FIRST INVESTORS INCOME FUNDS

	P E R S H A R E D A T A
			Investment Operations									Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total From Investment Operations			Net Investment Income		Net Realized Gain		Total Distributions		Net Asset Value, End of Period
LIMITED DURATION BOND FUND (e)
Class A
2014 (h)	$	10.00	$	—	(c)	$	(.05	)	$	(.05	)	$	.06		—	$	.06	$	9.89
2015		9.89		.03	(c)		.04			.07			.20		—		.20		9.76
2016		9.76		(.03	)(c)		.15			.12			.22		—		.22		9.66
2017		9.66		.08	(c)		(.06	)		.02			.21		—		.21		9.47
2018 (l)		9.47		.06	(c)		(.17	)		(.11	)		.12		—		.12		9.24
Advisor Class
2014 (h)		10.00		.02	(c)		(.05	)		(.03	)		.06		—		.06		9.91
2015		9.91		.06	(c)		.05			.11			.22		—		.22		9.80
2016		9.80		—	(c)		.14			.14			.25		—		.25		9.69
2017		9.69		.13	(c)		(.08	)		.05			.24		—		.24		9.50
2018 (l)		9.50		.07	(c)		(.18	)		(.11	)		.13		—		.13		9.26
Institutional Class
2014 (h)		10.00		.02	(c)		(.03	)		(.01	)		.07		—		.07		9.92
2015		9.92		.08	(c)		.04			.12			.23		—		.23		9.81
2016		9.81		.02	(c)		.14			.16			.27		—		.27		9.70
2017		9.70		.11	(c)		(.04	)		.07			.25		—		.25		9.52
2018 (l)		9.52		.08	(c)		(.18	)		(.10	)		.14		—		.14		9.28

See notes to financial statements

288

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived, Assumed or Reimbursed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income (Loss)			Expenses***			Net Investment Income (Loss)			Portfolio Turnover Rate
	(.50	)%††	$	8,911		1.05	%†		1.05	%†		.15	%†		3.37	%†		(2.17	)%†		19	%††
	.67			26,852		1.05			1.05			.37			1.32			.10			57
	1.21			48,342		1.05			1.05			(.25	)		1.23			(.43	)		54
	.22			62,841		1.05			1.05			.85			1.22			.68			60
	(1.22	)††		61,356		1.02	†		1.02	†		1.25	†		1.17	†		1.10	†		24	††
	(.28	)††		25,649		.75	†		.75	†		.46	†		1.02	†		.19	†		19	††
	1.08			40,502		.75			.75			.66			1.09			.32			57
	1.47			50,645		.75			.75			.04			1.01			(.22	)		54
	.54			31,638		.75			.75			1.14			1.02			.87			60
	(1.20	)††		34,317		.72	†		.72	†		1.56	†		.90	†		1.38	†		24	††
	(.14	)††		5,125		.60	†		.60	†		.53	†		3.32	†		(2.19	)†		19	††
	1.21			6,747		.60			.60			.81			.92			.49			57
	1.64			22,296		.60			.60			.20			.82			(.02	)		54
	.77			41,065		.60			.60			1.30			.82			1.08			60
	(1.11	)††		32,538		.58	†		.58	†		1.68	†		.77	†		1.49	†		24	††

289

Financial Highlights (continued)

FIRST INVESTORS INCOME FUNDS

	P E R S H A R E D A T A
			Investment Operations									Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total From Investment Operations			Net Investment Income		Net Realized Gain			Total Distributions		Net Asset Value, End of Period
STRATEGIC INCOME FUND
Class A
2013 (j)	$	10.00	$	.14	(a)	$	(.23	)	$	(.09	)	$	.13	$	—		$	.13	$	9.78
2014		9.78		.32	(a)(c)		.12			.44			.28		.00	(d)		.28		9.94
2015		9.94		.34	(a)(c)		(.57	)		(.23	)		.34		.07			.41		9.30
2016		9.30		.30	(a)(c)		.22			.52			.32		.02			.34		9.48
2017		9.48		.30	(a)(c)		.05			.35			.30		—			.30		9.53
2018 (l)		9.53		.16	(a)(c)		(.20	)		(.04	)		.17		—			.17		9.32
Advisor Class
2013 (j)		10.00		.14	(a)		(.22	)		(.08	)		.15		—			.15		9.77
2014		9.77		.36	(a)(c)		.11			.47			.32		.00	(d)		.32		9.92
2015		9.92		.38	(a)(c)		(.56	)		(.18	)		.38		.07			.45		9.29
2016		9.29		.33	(a)(c)		.23			.56			.36		.02			.38		9.47
2017		9.47		.29	(a)(c)		.09			.38			.33		—			.33		9.52
2018 (l)		9.52		.18	(a)(c)		(.21	)		(.03	)		.18		—			.18		9.31

*	Calculated without sales charges.
**	Net of expenses waived or assumed (Note 3).
***	The ratios do not include a reduction of expenses from cash balances maintained with the custodian or from brokerage service arrangements (Note1G).
†	Annualized
††	Not annualized
(a)	Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. The ratio does not include net investment income of the investment companies in which the Fund invests.
(b)	Does not include expenses of the investment companies in which the Fund invests.
(c)	Based on average shares during the period.
(d)	Due to rounding, amount is less than .005 per share.
(e)	Prior to January 31, 2018, known as Limited Duration High Quality Bond Fund.
(f)	Prior to October 3, 2016, known as Cash Management Fund.
(g)	For the period October 1, 2015 (commencement of operations) to September 30, 2016.
(h)	For the period May 19, 2014 (commencement of operations) to September 30, 2014.
(i)	For the period October 21, 2013 (commencement of operations) to September 30, 2014.
(j)	For the period April 3, 2013 (commencement of operations) to September 30, 2013.
(k)	For the period April 1, 2013 (commencement of operations) to September 30, 2013.
(l)	For the period October 1, 2017 to March 31, 2018.

See notes to financial statements

290

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived or Assumed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income			Expenses***			Net Investment Income (Loss)			Portfolio Turnover Rate
	(.87	)%††	$	47,344		1.30	%†(b)		1.30	%†(b)		2.88	%†(a)		2.10	%†(b)		2.08	%†(a)		19	%††
	4.55			101,540		.80	(b)		.80	(b)		3.18	(a)		.68	(b)		3.30	(a)		20
	(2.37	)		131,734		.59	(b)		.59	(b)		3.55	(a)		N/A			N/A			40
	5.64			149,190		.58	(b)		.58	(b)		3.19	(a)		N/A			N/A			49
	3.73			162,789		.57	(b)		.57	(b)		3.24	(a)		N/A			N/A			37
	(.42	)††		160,841		.57	†(b)		.57	†(b)		3.47	†(a)		N/A			N/A			30	††
	(.79	)††		1		1.00	†(b)		1.00	†(b)		2.89	†(a)		14.79	†(b)		(10.90	)†(a)		19	††
	4.82			323		.36	(b)		.36	(b)		3.62	(a)		.29	(b)		3.69	(a)		20
	(1.93	)		306		.19	(b)		.19	(b)		3.95	(a)		N/A			N/A			40
	6.14			415		.17	(b)		.17	(b)		3.59	(a)		N/A			N/A			49
	4.14			963		.18	(b)		.18	(b)		3.66	(a)		N/A			N/A			37
	(.28	)††		755		.24	†(b)		.24	†(b)		3.79	†(a)		N/A			N/A			30	††

291

Financial Highlights

FIRST INVESTORS EQUITY FUNDS

The following table sets forth the per share operating performance data for a share outstanding, total return, ratios to average net assets and other supplemental data for each fiscal year ended September 30 unless otherwise indicated.

	P E R S H A R E D A T A
			Investment Operations								Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total From Investment Operations		Net Investment Income		Net Realized Gain		Total Distributions		Net Asset Value, End of Period
COVERED CALL STRATEGY FUND
Class A
2016 (e)	$	10.00	$	.06	(a)	$	.33		$	.39	$	.03	$	—	$	.03	$	10.36
2017		10.36		.10	(a)		.85			.95		.11		.02		.13		11.18
2018 (h)		11.18		.05	(a)		(.04	)		.01		.05		—		.05		11.14
Advisor Class
2016 (e)		10.00		.08	(a)		.32			.40		.06		—		.06		10.34
2017		10.34		.13	(a)		.86			.99		.15		.02		.17		11.16
2018 (h)		11.16		.07	(a)		(.04	)		.03		.07		—		.07		11.12
Institutional Class
2016 (e)		10.00		.09	(a)		.33			.42		.07		—		.07		10.35
2017		10.35		.16	(a)		.85			1.01		.17		.02		.19		11.17
2018 (h)		11.17		.08	(a)		(.05	)		.03		.16		—		.16		11.04

See notes to financial statements

292

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived or Assumed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income			Expenses***			Net Investment Income			Portfolio Turnover Rate
	3.94	%††	$	48,514		1.30	%†		1.30	%†		1.19	%†		1.73	%†		.76	%†		83	%††
	9.17			167,906		1.30			1.30			1.18			1.36			1.12			121
	.09	††		204,022		1.30	†		1.30	†		.91	†		1.29	†		.92	†		57	††
	4.05	††		39,129		.97	†		.97	†		1.64	†		1.50	†		1.11	†		83	††
	9.62			109,360		.97			.97			1.53			1.06			1.44			121
	.23	††		155,066		.97	†		.97	†		1.24	†		1.01	†		1.20	†		57	††
	4.18	††		4,214		.84	†		.84	†		1.76	†		1.25	†		1.35	†		83	††
	9.77			7,334		.84			.84			1.65			.96			1.53			151
	.25	††		2,396		.85	†		.85	†		1.36	†		.90	†		1.31	†		57	††

293

Financial Highlights (continued)

FIRST INVESTORS EQUITY FUNDS

	P E R S H A R E D A T A
			Investment Operations									Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total From Investment Operations			Net Investment Income		Net Realized Gain		Total Distributions		Net Asset Value, End of Period
EQUITY INCOME FUND
Class A
2013	$	7.67	$	.14		$	1.32		$	1.46		$	.14	$	—	$	.14	$	8.99
2014		8.99		.13	(a)		1.16			1.29			.14		.15		.29		9.99
2015		9.99		.15	(a)		(.54	)		(.39	)		.15		.46		.61		8.99
2016		8.99		.16	(a)		1.08			1.24			.16		.35		.51		9.72
2017		9.72		.16	(a)		1.22			1.38			.21		.18		.39		10.71
2018 (h)		10.71		.07	(a)		.14			.21			.08		.36		.44		10.48
Class B
2013		7.55		.09			1.28			1.37			.08		—		.08		8.84
2014		8.84		.05	(a)		1.13			1.18			.05		.15		.20		9.82
2015		9.82		.06	(a)		(.53	)		(.47	)		.07		.46		.53		8.82
2016		8.82		.08	(a)		1.06			1.14			.09		.35		.44		9.52
2017		9.52		.08	(a)		1.19			1.27			.12		.18		.30		10.49
2018 (h)		10.49		.02	(a)		.15			.17			.04		.36		.40		10.26
Advisor Class
2013 (g)		8.40		.08			.58			.66			.07		—		.07		8.99
2014		8.99		.17	(a)		1.13			1.30			.15		.15		.30		9.99
2015		9.99		.19	(a)		(.55	)		(.36	)		.17		.46		.63		9.00
2016		9.00		.20	(a)		1.08			1.28			.19		.35		.54		9.74
2017		9.74		.19	(a)		1.23			1.42			.21		.18		.39		10.77
2018 (h)		10.77		.09	(a)		.14			.23			.09		.36		.45		10.55
Institutional Class
2013 (g)		8.40		.04			.63			.67			.05		—		.05		9.02
2014		9.02		.17	(a)		1.16			1.33			.17		.15		.32		10.03
2015		10.03		.19	(a)		(.55	)		(.36	)		.17		.46		.63		9.04
2016		9.04		.20	(a)		1.09			1.29			.20		.35		.55		9.78
2017		9.78		.37	(a)		1.06			1.43			.31		.18		.49		10.72
2018 (h)		10.72		.08	(a)		.16			.24			.10		.36		.46		10.50

See notes to financial statements

294

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived or Assumed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income			Expenses***			Net Investment Income (Loss)			Portfolio Turnover Rate
	19.14	%	$	475,422		1.28	%		1.28	%		1.66	%		N/A			N/A			32	%
	14.48			510,981		1.21			1.22			1.33			N/A			N/A			27
	(4.31	)		485,342		1.21			1.21			1.52			N/A			N/A			23
	14.16			529,327		1.22			1.22			1.72			N/A			N/A			22
	14.46			564,918		1.20			1.20			1.58			N/A			N/A			15
	1.82	††		545,535		1.20	†		1.20	†		1.23	†		N/A			N/A			9	††
	18.21			6,337		2.05			2.05			.90			N/A			N/A			32
	13.49			5,721		2.06			2.06			.49			N/A			N/A			27
	(5.16	)		3,847		2.06			2.06			.67			N/A			N/A			23
	13.20			3,446		2.07			2.07			.87			N/A			N/A			22
	13.48			3,012		2.03			2.03			.76			N/A			N/A			15
	1.49	††		2,600		2.03	†		2.03	†		.40	†		N/A			N/A			9	††
	7.87	††		1		1.01	†		1.01	†		1.78	†		4.68	%†		(1.89	)%†		32	††
	14.57			32,160		.81			.81			1.71			N/A			N/A			27
	(3.96	)		38,482		.84			.84			1.90			N/A			N/A			23
	14.63			54,576		.85			.85			2.08			N/A			N/A			22
	14.87			71,611		.84			.84			1.94			N/A			N/A			15
	2.03	††		83,081		.85	†		.85	†		1.56	†		N/A			N/A			9	††
	7.95	††		4,717		.86	†		.86	†		1.74	†		.86	†		1.74	†		32	††
	14.88			7,399		.80			.80			1.76			N/A			N/A			27
	(3.97	)		9,773		.81			.81			1.93			N/A			N/A			23
	14.67			2,448		.78			.78			2.08			N/A			N/A			22
	14.84			2,193		.80			.80			2.02			N/A			N/A			15
	2.08	††		2,393		.80	†		.80	†		1.51	†		N/A			N/A			9	††

295

Financial Highlights (continued)

FIRST INVESTORS EQUITY FUNDS

	P E R S H A R E D A T A
			Investment Operations							Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain on Investments		Total From Investment Operations		Net Investment Income			Net Realized Gain		Total Distributions			Net Asset Value, End of Period
GLOBAL FUND
Class A
2013	$	6.79	$	.05		$	1.20	$	1.25	$	.03		$	—	$	.03		$	8.01
2014		8.01		—	(a)		.80		.80		.04			.11		.15			8.66
2015		8.66		—	(a)		.11		.11		—			1.51		1.51			7.26
2016		7.26		.01	(a)		.43		.44		.00	(b)		.40		.40			7.30
2017		7.30		.02	(a)		1.29		1.31		.01			—		.01			8.60
2018 (h)		8.60		(.02	)(a)		.54		.52		.04			.63		.67			8.45
Class B
2013		5.86		(.07	)		1.09		1.02		.02			—		.02			6.86
2014		6.86		(.06	)(a)		.69		.63		—			.11		.11			7.38
2015		7.38		(.05	)(a)		.10		.05		—			1.51		1.51			5.92
2016		5.92		(.04	)(a)		.36		.32		—			.40		.40			5.84
2017		5.84		(.03	)(a)		1.02		.99		.00	(b)		—		.00	(b)		6.83
2018 (h)		6.83		(.05	)(a)		.43		.38		.03			.63		.66			6.55
Advisor Class
2013 (g)		7.28		.06			.67		.73		—			—		—			8.01
2014		8.01		—	(a)		.82		.82		—			.11		.11			8.72
2015		8.72		.03	(a)		.12		.15		—			1.51		1.51			7.36
2016		7.36		.04	(a)		.44		.48		.01			.40		.41			7.43
2017		7.43		.06	(a)		1.31		1.37		.02			—		.02			8.78
2018 (h)		8.78		(.01	)(a)		.55		.54		.05			.63		.68			8.64
Institutional Class
2013 (g)		7.28		.06			.68		.74		—			—		—			8.02
2014		8.02		—	(a)		.84		.84		—			.11		.11			8.75
2015		8.75		.04	(a)		.11		.15		—			1.51		1.51			7.39
2016		7.39		.04	(a)		.45		.49		.01			.40		.41			7.47
2017		7.47		.06	(a)		1.31		1.37		.02			—		.02			8.82
2018 (h)		8.82		—	(a)		.55		.55		.05			.63		.68			8.69

See notes to financial statements

296

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived or Assumed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income (Loss)			Expenses***			Net Investment Income (Loss)			Portfolio Turnover Rate
	18.56	%	$	317,329		1.60	%		1.61	%		.66	%		1.62	%		.65	%		92	%
	10.00			332,416		1.49			1.49			.03			1.54			(.02	)		154
	.87			331,382		1.47			1.47			(.01	)		1.52			(.06	)		97
	6.03			339,956		1.47			1.47			.09			1.52			.04			94
	17.99			379,176		1.44			1.44			.30			1.49			.25			117
	6.16	††		390,111		1.44	†		1.44	†		(.52	)†		1.49	†		(.57	)†		38	††
	17.55			4,419		2.36			2.36			(.10	)		2.38			(.12	)		92
	9.18			4,023		2.31			2.31			(.79	)		2.36			(.84	)		154
	.09			3,405		2.28			2.28			(.82	)		2.33			(.87	)		97
	5.29			2,937		2.27			2.27			(.72	)		2.32			(.77	)		94
	16.98			2,642		2.24			2.24			(.52	)		2.29			(.57	)		117
	5.67	††		2,452		2.23	†		2.23	†		(1.32	)†		2.28	†		(1.37	)†		38	††
	10.03	††		1		1.27	†		1.27	†		1.46	†		4.88	†		(2.15	)†		92	††
	10.24			66,590		1.06			1.06			.53			1.11			.48			154
	1.37			114,556		1.06			1.06			.43			1.11			.38			97
	6.48			169,088		1.05			1.05			.53			1.10			.48			94
	18.46			191,839		1.04			1.04			.70			1.09			.65			117
	6.24	††		222,065		1.05	†		1.05	†		(.12	)†		1.10	†		(.17	)†		38	††
	10.17	††		1		1.14	†		1.14	†		1.55	†		4.59	†		(1.90	)†		92	††
	10.48			3,001		1.03			1.03			.48			1.08			.43			154
	1.37			2,955		1.02			1.02			.45			1.07			.40			97
	6.61			3,288		1.01			1.01			.55			1.06			.50			94
	18.38			3,800		1.00			1.00			.74			1.05			.69			117
	6.35	††		4,205		1.01	†		1.01	†		(.08	)†		1.06	†		(.13	)†		38	††

297

Financial Highlights (continued)

FIRST INVESTORS EQUITY FUNDS

	P E R S H A R E D A T A
			Investment Operations									Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total From Investment Operations			Net Investment Income		Net Realized Gain		Total Distributions		Net Asset Value, End of Period
GROWTH & INCOME FUND
Class A
2013	$	16.66	$	.20		$	3.90		$	4.10		$	.22	$	—	$	.22	$	20.54
2014		20.54		.18	(a)		2.92			3.10			.20		.68		.88		22.76
2015		22.76		.20	(a)		(1.37	)		(1.17	)		.19		1.05		1.24		20.35
2016		20.35		.26	(a)		2.07			2.33			.24		.93		1.17		21.51
2017		21.51		.25	(a)		2.66			2.91			.37		.75		1.12		23.30
2018 (h)		23.30		.13	(a)		.62			.75			.18		.94		1.12		22.93
Class B
2013		15.64		.06			3.67			3.73			.11		—		.11		19.26
2014		19.26		—	(a)		2.73			2.73			—		.68		.68		21.31
2015		21.31		.02	(a)		(1.27	)		(1.25	)		.04		1.05		1.09		18.97
2016		18.97		.10	(a)		1.91			2.01			.08		.93		1.01		19.97
2017		19.97		.08	(a)		2.45			2.53			.13		.75		.88		21.62
2018 (h)		21.62		.03	(a)		.58			.61			.05		.94		.99		21.24
Advisor Class
2013 (g)		18.49		.13			2.00			2.13			.08		—		.08		20.54
2014		20.54		.27	(a)		2.91			3.18			.20		.68		.88		22.84
2015		22.84		.29	(a)		(1.38	)		(1.09	)		.24		1.05		1.29		20.46
2016		20.46		.35	(a)		2.08			2.43			.29		.93		1.22		21.67
2017		21.67		.33	(a)		2.69			3.02			.48		.75		1.23		23.46
2018 (h)		23.46		.17	(a)		.63			.80			.22		.94		1.16		23.10
Institutional Class
2013 (g)		18.49		.15			2.00			2.15			.09		—		.09		20.55
2014		20.55		.27	(a)		2.92			3.19			.28		.68		.96		22.78
2015		22.78		.29	(a)		(1.39	)		(1.10	)		.24		1.05		1.29		20.39
2016		20.39		.35	(a)		2.07			2.42			.30		.93		1.23		21.58
2017		21.58		.34	(a)		2.67			3.01			.45		.75		1.20		23.39
2018 (h)		23.39		.18	(a)		.63			.81			.23		.94		1.17		23.03

See notes to financial statements

298

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived or Assumed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income			Expenses***			Net Investment Loss			Portfolio Turnover Rate
	24.86	%	$	1,538,582		1.22	%		1.22	%		1.11	%		N/A			N/A			20	%
	15.26			1,632,920		1.15			1.15			.80			N/A			N/A			22
	(5.62	)		1,496,803		1.15			1.15			.89			N/A			N/A			23
	11.72			1,588,423		1.16			1.16			1.28			N/A			N/A			23
	13.99			1,675,590		1.15			1.15			1.13			N/A			N/A			16
	3.08	††		1,640,952		1.14	†		1.14	†		1.06	†		N/A			N/A			10	††
	24.02			27,762		1.96			1.96			.37			N/A			N/A			20
	14.32			25,497		1.93			1.93			.02			N/A			N/A			22
	(6.33	)		19,316		1.93			1.93			.11			N/A			N/A			23
	10.82			17,047		1.94			1.94			.50			N/A			N/A			23
	13.14			14,310		1.93			1.93			.35			N/A			N/A			16
	2.66	††		12,599		1.91	†		1.91	†		.28	†		N/A			N/A			10	††
	11.53	††		1		.97	†		.97	†		1.31	†		4.60	%†		(2.32	)%†		20	††
	15.67			123,039		.74			.74			1.17			N/A			N/A			22
	(5.24	)		141,229		.75			.75			1.29			N/A			N/A			23
	12.18			132,486		.77			.77			1.68			N/A			N/A			23
	14.42			166,851		.78			.78			1.50			N/A			N/A			16
	3.24	††		184,503		.77	†		.77	†		1.42	†		N/A			N/A			10	††
	11.64	††		1		.78	†		.78	†		1.50	†		4.19	†		(1.91	)†		20	††
	15.75			9,746		.74			.74			1.21			N/A			N/A			22
	(5.27	)		9,380		.75			.75			1.29			N/A			N/A			23
	12.18			10,596		.74			.74			1.70			N/A			N/A			23
	14.47			10,839		.74			.74			1.54			N/A			N/A			16
	3.30	††		11,197		.74	†		.74	†		1.46	†		N/A			N/A			10	††

299

Financial Highlights (continued)

FIRST INVESTORS EQUITY FUNDS

	P E R S H A R E D A T A
			Investment Operations									Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total From Investment Operations			Net Investment Income			Net Realied Gain		Total Distributions			Net Asset Value, End of Period
HEDGED U.S. EQUITY OPPORTUNITIES FUND
Class A
2016 (d)	$	10.00	$	—	(a)	$	(.09	)	$	(.09	)	$	—			—	$	—		$	9.91
2017		9.91		(.02	)(a)		.88			.86			—			—		—			10.77
2018 (h)		10.77		(.01	)(a)		.44			.43			—			—		—			11.20
Advisor Class
2016 (d)		10.00		—	(a)		(.09	)		(.09	)		—			—		—			9.91
2017		9.91		.01	(a)		.89			.90			.00	(b)		—		.00	(b)		10.81
2018 (h)		10.81		—	(a)		.44			.44			—			—		—			11.25
Institutional Class
2016 (d)		10.00		.01	(a)		(.10	)		(.09	)		—			—		—			9.91
2017		9.91		.02	(a)		.89			.91			.00	(b)		—		.00	(b)		10.82
2018 (h)		10.82		.01	(a)		.45			.46			—			—		—			11.28
INTERNATIONAL FUND
Class A
2013	$	11.68	$	.04		$	.81		$	.85		$	—			—	$	—		$	12.53
2014		12.53		.05	(a)		.50			.55			.02			—		.02			13.06
2015		13.06		.05	(a)		(.41	)		(.36	)		.05			—		.05			12.65
2016		12.65		.06	(a)		1.05			1.11			.05			—		.05			13.71
2017		13.71		.02	(a)		2.02			2.04			.07			—		.07			15.68
2018 (h)		15.68		(.04	)(a)		.40			.36			.02			—		.02			16.02
Class B
2013		11.25		(.11	)		.84			.73			—			—		—			11.98
2014		11.98		(.05	)(a)		.47			.42			—			—		—			12.40
2015		12.40		(.06	)(a)		(.38	)		(.44	)		—			—		—			11.96
2016		11.96		(.06	)(a)		1.00			.94			.03			—		.03			12.87
2017		12.87		(.09	)(a)		1.90			1.81			.05			—		.05			14.63
2018 (h)		14.63		(.10	)(a)		.37			.27			—			—		—			14.90
Advisor Class
2013 (g)		12.79		.06			(.30	)		(.24	)		—			—		—			12.55
2014		12.55		.14	(a)		.44			.58			—			—		—			13.13
2015		13.13		.11	(a)		(.43	)		(.32	)		.05			—		.05			12.76
2016		12.76		.11	(a)		1.06			1.17			.06			—		.06			13.87
2017		13.87		.08	(a)		2.05			2.13			.08			—		.08			15.92
2018 (h)		15.92		(.01	)(a)		.40			.39			.03			—		.03			16.28
Institutional Class
2013 (g)		12.79		.08			(.31	)		(.23	)		—			—		—			12.56
2014		12.56		.12	(a)		.51			.63			—			—		—			13.19
2015		13.19		.12	(a)		(.43	)		(.31	)		.10			—		.10			12.78
2016		12.78		.13	(a)		1.07			1.20			.07			—		.07			13.91
2017		13.91		.09	(a)		2.05			2.14			.09			—		.09			15.96
2018 (h)		15.96		—	(a)		.41			.41			.04			—		.04			16.33

See notes to financial statements

300

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived or Assumed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income (Loss)			Expenses***			Net Investment Gain (Loss)			Portfolio Turnover Rate
	(.90	)%††	$	9,265		1.75	%†		1.75	%†		(.02	)%†		4.24	%†		(2.51	)%†		7	%††
	8.68			44,228		1.75			1.75			(.21	)†		2.09			(.55	)		75
	3.99	††		52,521		1.75	†		1.75	†		(.27	)†		1.80	†		(.32	)†		43	††
	(.90	)††		24,539		1.42	†		1.42	†		.26	†		3.37	†		(1.69	)†		7	††
	9.11			33,770		1.42			1.42			.10	†		1.76			(.24	)		75
	4.07	††		36,663		1.42	†		1.42	†		.06	†		1.42	†		.06	†		43	††
	(.90	)††		99		1.31	†		1.31	†		.30	†		3.24	†		(1.63	)†		7	††
	9.21			472		1.31			1.31			.23	†		1.74			(.20	)		75
	4.25	††		404		1.31	†		1.31	†		.16	†		1.43	†		.04	†		43	††
	7.28	%	$	215,873		1.71	%		1.71	%		.34	%		N/A			N/A			31	%
	4.43			193,174		1.66			1.66			.39			N/A			N/A			34
	(2.78	)		194,991		1.64			1.64			.40			N/A			N/A			27
	8.80			209,205		1.61			1.61			.45			N/A			N/A			28
	15.00			238,770		1.58			1.58			.17			N/A			N/A			38
	2.28	††		254,765		1.57	†		1.57	†		(.50	)†		N/A			N/A			16	††
	6.49			3,200		2.46			2.46			(.45	)		N/A			N/A			31
	3.51			2,893		2.49			2.49			(.42	)		N/A			N/A			34
	(3.55	)		2,094		2.47			2.47			(.49	)		N/A			N/A			27
	7.83			1,607		2.45			2.45			(.45	)		N/A			N/A			28
	14.12			1,465		2.40			2.40			(.68	)		N/A			N/A			38
	1.85	††		1,345		2.38	†		2.38	†		(1.33	)†		N/A			N/A			16	††
	(1.88	)††		1		1.45	†		1.45	†		.97	†		5.30	%†		(2.88	)%†		31	††
	4.62			35,249		1.27			1.27			.98			N/A			N/A			34
	(2.45	)		57,623		1.24			1.24			.83			N/A			N/A			27
	9.22			81,525		1.23			1.24			.85			N/A			N/A			28
	15.50			111,334		1.18			1.18			.59			N/A			N/A			38
	2.46	††		129,997		1.20	†		1.20	†		(.12	)†		N/A			N/A			16	††
	(1.80	)††		1		1.19	†		1.19	†		1.23	†		4.84	†		(2.42	)†		31	††
	5.02			2,357		1.17			1.17			.93			N/A			N/A			34
	(2.33	)		2,347		1.14			1.14			.89			N/A			N/A			27
	9.39			2,695		1.12			1.12			.95			N/A			N/A			28
	15.54			3,274		1.09			1.09			.65			N/A			N/A			38
	2.55	††		3,544		1.10	†		1.10	†		(.03	)†		N/A			N/A			16	††

301

Financial Highlights (continued)

FIRST INVESTORS EQUITY FUNDS

	P E R S H A R E D A T A
			Investment Operations									Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total From Investment Operations			Net Investment Income		Net Realized Gain		Total Distributions		Net Asset Value, End of Period
LONG SHORT FUND
Class A
2017 (c)	$	10.00	$	(.11	)(a)	$	.55		$	.44			—		—		—	$	10.44
2018 (h)		10.44		(.09	)(a)		(.06	)		(.15	)		—		—		—		10.29
Advisor Class
2017 (c)		10.00		(.09	)(a)		.55			.46			—		—		—		10.46
2018 (h)		10.46		(.07	)(a)		(.06	)		(.13	)		—		—		—		10.33
Institutional Class
2017 (c)		10.00		(.11	)(a)		.58			.47			—		—		—		10.47
2018 (h)		10.47		(.06	)(a)		(.07	)		(.13	)		—		—		—		10.34
OPPORTUNITY FUND
Class A
2013	$	29.37	$	.18		$	9.64		$	9.82		$	.26	$	.80	$	1.06	$	38.13
2014		38.13		.07	(a)		5.29			5.36			.16		2.43		2.59		40.90
2015		40.90		.04	(a)		(.39	)		(.35	)		.06		2.70		2.76		37.79
2016		37.79		.20	(a)		2.52			2.72			.04		3.18		3.22		37.29
2017		37.29		.11	(a)		6.03			6.14			.22		1.35		1.57		41.86
2018 (h)		41.86		.04	(a)		(.99	)		(1.03	)		.12		2.38		2.50		40.39
Class B
2013		25.15		(.12	)		8.26			8.14			.22		.80		1.02		32.27
2014		32.27		(.21	)(a)		4.47			4.26			—		2.43		2.43		34.10
2015		34.10		(.23	)(a)		(.29	)		(.52	)		—		2.70		2.70		30.88
2016		30.88		(.07	)(a)		2.05			1.98			—		3.18		3.18		29.68
2017		29.68		(.16	)(a)		4.77			4.61			.18		1.35		1.53		32.76
2018 (h)		32.76		(.09	)(a)		.79			.70			.07		2.38		2.45		31.01
Advisor Class
2013 (g)		33.13		.16			4.89			5.05			—		—		—		38.18
2014		38.18		.23	(a)		5.22			5.45			—		2.43		2.43		41.20
2015		41.20		.16	(a)		(.40	)		(.24	)		.08		2.70		2.78		38.18
2016		38.18		.30	(a)		2.56			2.86			.07		3.18		3.25		37.79
2017		37.79		.24	(a)		6.12			6.36			.24		1.35		1.59		42.56
2018 (h)		42.56		.11	(a)		1.01			1.12			.15		2.38		2.53		41.15
Institutional Class
2013 (g)		33.13		.19			4.89			5.08			—		—		—		38.21
2014		38.21		.24	(a)		5.30			5.54			.17		2.43		2.60		41.15
2015		41.15		.22	(a)		(.40	)		(.18	)		.20		2.70		2.90		38.07
2016		38.07		.36	(a)		2.54			2.90			.08		3.18		3.26		37.71
2017		37.71		.27	(a)		6.12			6.39			.26		1.35		1.61		42.49
2018 (h)		42.49		.14	(a)		1.00			1.14			.16		2.38		2.54		41.09

(1) For the periods ended September 30, 2017 and March 31, 2018, the ratios of net expenses after fee credits to average net assets excluding expenses on securities sold short were 1.95% on Class A shares, 1.67% on Advisor Class shares and 1.54% on Institutional Class shares.

See notes to financial statements

302

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived or Assumed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income (Loss)			Expenses***			Net Investment Loss			Portfolio Turnover Rate
	4.40	%††	$	10,697		3.21	%†(1)		3.21	%†		(1.77	)%†		3.99	%†		(2.55	)%†		89	%††
	(1.44	)††		13,169		2.93	†(1)		2.93	†		(1.63	)†		3.06	†		(1.76	)†		97	††
	4.60	††		40,038		2.87	†(1)		2.87	†		(1.50	)†		3.52	†		(2.15	)†		89	††
	(1.24	)††		42,476		2.63	†(1)		2.63	†		(1.34	)†		2.76	†		(1.47	)†		97	††
	4.70	††		171		2.74	†(1)		2.74	†		(1.41	)†		3.61	†		(2.28	)†		89	††
	(1.24	)††		114		2.44	†(1)		2.44	†		(1.17	)†		2.60	†		(1.33	)†		97	††
	34.47	%	$	726,942		1.28	%		1.28	%		.56	%		N/A			N/A			40	%
	14.20			805,113		1.20			1.20			.16			N/A			N/A			34
	(1.16	)		818,955		1.20			1.20			.11			N/A			N/A			37
	7.39			880,274		1.22			1.22			.54			N/A			N/A			36
	16.99			1,002,618		1.20			1.20			.27			N/A			N/A			32
	2.26	††		1,002,472		1.20	†		1.20	†		.20	†		N/A			N/A			15	††
	33.49			13,677		2.02			2.02			(.18	)		N/A			N/A			40
	13.32			12,145		1.99			1.99			(.63	)		N/A			N/A			34
	(1.94	)		9,691		1.97			1.97			(.67	)		N/A			N/A			37
	6.58			8,606		1.99			1.99			(.22	)		N/A			N/A			36
	16.12			7,557		1.96			1.96			(.49	)		N/A			N/A			32
	1.87	††		6,731		1.95	†		1.95	†		(.56	)†		N/A			N/A			15	††
	15.24	††		1		.98	†		.98	†		.91	†		4.48	%†		(2.59	)%†		40	††
	14.43			35,733		.90			.90			.51			N/A			N/A			34
	(.87	)		48,322		.91			.91			.40			N/A			N/A			37
	7.69			73,477		.93			.93			.83			N/A			N/A			36
	17.37			81,773		.88			.88			.59			N/A			N/A			32
	2.43	††		90,077		.91	†		.91	†		.50	†		N/A			N/A			15	††
	15.33	††		1		.85	†		.85	†		1.06	†		4.17	†		(2.26	)†		40	††
	14.66			3,838		.79			.79			.58			N/A			N/A			34
	(.74	)		4,228		.78			.78			.52			N/A			N/A			37
	7.84			4,975		.79			.79			.98			N/A			N/A			36
	17.49			5,678		.78			.78			.70			N/A			N/A			32	††
	2.51	††		5,867		.77	†		.77	†		.64	†		N/A			N/A			15	††

303

Financial Highlights (continued)

FIRST INVESTORS EQUITY FUNDS

	P E R S H A R E D A T A
			Investment Operations									Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total From Investment Operations			Net Investment Income		Net Realized Gain		Total Distributions		Net Asset Value, End of Period
REAL ESTATE FUND
Class A
2015 (f)	$	10.00	$	.09	(a)	$	(1.06	)	$	(.97	)	$	.07	$	—	$	.07	$	8.96
2016		8.96		.24	(a)		1.11			1.35			.18		.02		.20		10.11
2017		10.11		.14	(a)		(.72	)		(.58	)		.13		.14		.27		9.26
2018 (h)		9.26		.10	(a)		(.42	)		(.32	)		.11		.07		.18		8.76
Advisor Class
2015 (f)		10.00		.11	(a)		(1.06	)		(.95	)		.07		—		.07		8.98
2016		8.98		.27	(a)		1.13			1.40			.21		.02		.23		10.15
2017		10.15		.18	(a)		(.74	)		(.56	)		.18		.14		.32		9.27
2018 (h)		9.27		.11	(a)		(.41	)		(.30	)		.12		.07		.19		8.78
Institutional Class
2015 (f)		10.00		.09	(a)		(1.04	)		(.95	)		.09		—		.09		8.96
2016		8.96		.28	(a)		1.13			1.41			.21		.02		.23		10.14
2017		10.14		.22	(a)		(.77	)		(.55	)		.19		.14		.33		9.26
2018 (h)		9.26		.13	(a)		(.42	)		(.29	)		.13		.07		.20		8.77

See notes to financial statements

304

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Paid Back
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income			Expenses***			Net Investment Income			Portfolio Turnover Rate
	(9.67	)%††	$	11,410		1.45	%†		1.45	%†		1.99	%†		2.31	%†		1.13	%†		18	%††
	15.19			27,741		1.45			1.45			2.47			1.54			2.38			31
	(5.77	)		40,935		1.45			1.45			1.58			1.45			1.58			17
	(3.63	)††		38,214		1.45	†		1.45	†		2.24	†		1.44	†		2.25	†		7	††
	(9.45	)††		40,824		1.12	†		1.12	†		2.36	†		1.63	†		1.85	†		18	††
	15.66			55,218		1.12			1.12			2.75			1.21			2.66			31
	(5.54	)		77,398		1.12			1.12			2.09			1.08			2.13			17
	(3.34	)††		85,350		1.12	†		1.12	†		2.52	†		1.05	†		2.59	†		7	††
	(9.45	)††		963		1.00	†		1.00	†		2.08	†		2.18	†		.90	†		18	††
	15.89			634		1.00			1.00			2.87			1.06			2.81			31
	(5.45	)		575		1.00			1.00			2.38			.94			2.44			17
	(3.31	)††		472		1.00	†		1.00	†		2.74			.91	†		2.83	†		7	††

305

Financial Highlights (continued)

FIRST INVESTORS EQUITY FUNDS

	P E R S H A R E D A T A
			Investment Operations							Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain on Investments		Total From Investment Operations		Net Investment Income			Net Realized Gain		Total Distributions			Net Asset Value, End of Period
SELECT GROWTH FUND
Class A
2013	$	7.98	$	.02		$	1.24	$	1.26	$	—		$	—	$	—		$	9.24
2014		9.24		—	(a)		1.73		1.73		.00	(b)		—		.00	(b)		10.97
2015		10.97		.02	(a)		.65		.67		.00	(b)		—		.00	(b)		11.64
2016		11.64		.02	(a)		.73		.75		.02			1.13		1.15			11.24
2017		11.24		—	(a)		2.38		2.38		.03			1.55		1.58			12.04
2018 (h)		12.04		—	(a)		.97		.97		.01			1.07		1.08			11.93
Class B
2013		7.25		(.06	)		1.15		1.09		—			—		—			8.34
2014		8.34		(.07	)(a)		1.55		1.48		—			—		—			9.82
2015		9.82		(.07	)(a)		.59		.52		—			—		—			10.34
2016		10.34		(.06	)(a)		.65		.59		.00	(b)		1.13		1.13			9.80
2017		9.80		(.07	)(a)		2.02		1.95		.02			1.55		1.57			10.18
2018 (h)		10.18		(.04	)(a)		.82		.78		—			1.07		1.07			9.89
Advisor Class
2013 (g)		8.46		.01			.79		.80		—			—		—			9.26
2014		9.26		.06	(a)		1.69		1.75		—			—		—			11.01
2015		11.01		.07	(a)		.66		.73		.01			—		.01			11.73
2016		11.73		.07	(a)		.73		.80		.03			1.13		1.16			11.37
2017		11.37		.05	(a)		2.40		2.45		.04			1.55		1.59			12.23
2018 (h)		12.23		.02	(a)		.99		1.01		.02			1.07		1.09			12.15
Institutional Class
2013 (g)		8.46		.02			.79		.81		—			—		—			9.27
2014		9.27		.05	(a)		1.74		1.79		—			—		—			11.06
2015		11.06		.07	(a)		.66		.73		.02			—		.02			11.77
2016		11.77		.07	(a)		.74		.81		.03			1.13		1.16			11.42
2017		11.42		.05	(a)		2.41		2.46		.04			1.55		1.59			12.29
2018 (h)		12.29		.02	(a)		1.00		1.02		.02			1.07		1.09			12.22

See notes to financial statements

306

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived or Assumed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income (Loss)			Expenses***			Net Investment Loss			Portfolio Turnover Rate
	15.79	%	$	315,833		1.35	%		1.35	%		.25	%		N/A			N/A			71	%
	18.77			330,595		1.27			1.27			.03			N/A			N/A			33
	6.12			352,651		1.25			1.25			.16			N/A			N/A			48
	6.50			373,279		1.27			1.27			.22			N/A			N/A			59
	24.16			444,933		1.25			1.25			.00			N/A			N/A			58
	8.01	††		481,214		1.22	†		1.22	†		(.04	)†		N/A			N/A			10	††
	15.03			5,308		2.10			2.10			(.48	)		N/A			N/A			71
	17.75			4,868		2.06			2.06			(.76	)		N/A			N/A			33
	5.30			4,101		2.03			2.03			(.63	)		N/A			N/A			48
	5.71			3,393		2.03			2.03			(.56	)		N/A			N/A			59
	23.13			3,163		2.01			2.01			(.75	)		N/A			N/A			58
	7.63	††		3,014		1.98	†		1.98	†		(.80	)†		N/A			N/A			10	††
	9.46	††		1		1.02	†		1.02	†		.25	†		4.63	%†		(3.36	)%†		71	††
	18.90			31,902		.83			.83			.51			N/A			N/A			33
	6.61			46,793		.84			.84			.57			N/A			N/A			48
	6.93			66,588		.85			.86			.62			N/A			N/A			59
	24.61			81,203		.84			.84			.40			N/A			N/A			58
	8.24	††		96,617		.84	†		.84	†		.35	†		N/A			N/A			10	††
	9.57	††		1		.89	†		.89	†		.39	†		4.32	†		(3.04	)†		71	††
	19.31			3,057		.83			.83			.48			N/A			N/A			33
	6.56			3,608		.82			.82			.59			N/A			N/A			48
	7.00			3,915		.83			.83			.66			N/A			N/A			59
	24.61			4,950		.82			.82			.43			N/A			N/A			58
	8.30	††		6,114		.81	†		.81	†		.38	†		N/A			N/A			10	††

307

Financial Highlights (continued)

FIRST INVESTORS EQUITY FUNDS

	P E R S H A R E D A T A
			Investment Operations								Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain on Investments		Total From Investment Operations			Net Investment Income		Net Realized Gain		Total Distributions		Net Asset Value, End of Period
SPECIAL SITUATIONS FUND
Class A
2013	$	24.40	$	.11		$	4.68	$	4.79		$	.12	$	1.00	$	1.12	$	28.07
2014		28.07		.02	(a)		3.16		3.18			—		4.60		4.60		26.65
2015		26.65		.02	(a)		.07		.09			.04		1.43		1.47		25.27
2016		25.27		.17	(a)		2.36		2.53			.02		1.44		1.46		26.34
2017		26.34		—	(a)		5.24		5.24			.16		.24		.40		31.18
2018 (h)		31.18		(.01	)(a)		.67		.66			.01		.87		.88		30.96
Class B
2013		20.67		(.10	)		3.96		3.86			.08		1.00		1.08		23.45
2014		23.45		(.17	)(a)		2.62		2.45			—		4.60		4.60		21.30
2015		21.30		(.16	)(a)		.08		(.08	)		—		1.43		1.43		19.79
2016		19.79		(.02	)(a)		1.81		1.79			—		1.44		1.44		20.14
2017		20.14		(.19	)(a)		4.01		3.82			.13		.24		.37		23.59
2018 (h)		23.59		(.10	)(a)		.52		.42			—		.87		.87		23.14
Advisor Class
2013 (g)		25.71		.01			2.37		2.38			—		—		—		28.09
2014		28.09		.12	(a)		3.10		3.22			—		4.60		4.60		26.71
2015		26.71		.10	(a)		.08		.18			.08		1.43		1.51		25.38
2016		25.38		.23	(a)		2.39		2.62			.04		1.44		1.48		26.52
2017		26.52		.08	(a)		5.29		5.37			.18		.24		.42		31.47
2018 (h)		31.47		.05	(a)		.68		.73			.04		.87		.91		31.29
Institutional Class
2013 (g)		25.71		.06			2.37		2.43			—		—		—		28.14
2014		28.14		.14	(a)		3.16		3.30			—		4.60		4.60		26.84
2015		26.84		.14	(a)		.08		.22			.16		1.43		1.59		25.47
2016		25.47		.28	(a)		2.39		2.67			.05		1.44		1.49		26.65
2017		26.65		.12	(a)		5.31		5.43			.18		.24		.42		31.66
2018 (h)		31.66		.06	(a)		.69		.75			.05		.87		.92		31.49

See notes to financial statements

308

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived or Assumed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income (Loss)			Expenses***			Net Investment Income (Loss)			Portfolio Turnover Rate
	20.47	%	$	412,102		1.39	%		1.39	%		.42	%		1.47	%		.34	%		110	%
	11.65			425,957		1.33			1.33			.06			1.38			.01			55
	.12			432,235		1.32			1.32			.07			1.33			.06			43
	10.35			472,720		1.33			1.34			.68			1.34			.68			39
	20.06			549,780		1.31			1.31			(.01	)		N/A			N/A			27
	2.03	††		554,528		1.29	†		1.29	†		(.05	)†		N/A			N/A			27	††
	19.62			4,932		2.13			2.13			(.29	)		2.21			(.37	)		110
	10.71			4,441		2.16			2.16			(.77	)		2.21			(.82	)		55
	(.67	)		3,618		2.13			2.13			(.74	)		2.14			(.75	)		43
	9.43			3,301		2.14			2.14			(.12	)		2.15			(.13	)		39
	19.13			3,081		2.10			2.10			(.80	)		N/A			N/A			27
	1.65	††		2,751		2.06	†		2.06	†		(.83	)†		N/A			N/A			27	††
	9.26	††		1		1.16	†		1.16	†		.08	†		4.82	†		(3.58	)†		110	††
	11.82			26,458		1.01			1.01			.39			1.06			.34			55
	.46			38,790		1.02			1.03			.37			1.04			.36			43
	10.67			59,159		1.03			1.03			.94			1.04			.93			39
	20.45			120,912		.97			.97			.34			N/A			N/A			27
	2.21	††		145,662		.95	†		.95	†		.29	†		N/A			N/A			27	††
	9.45	††		1		.84	†		.84	†		.42	†		4.43	†		(3.17	)†		110	††
	12.10			5,750		.89			.89			.51			.94			.46			55
	.60			5,905		.88			.88			.51			.89			.50			43
	10.84			6,914		.88			.89			1.11			.90			1.10			39
	20.56			8,712		.87			.87			.42			N/A			N/A			27
	2.26	††		8,983		.86	†		.86	†		.38	†		N/A			N/A			27	††

309

Financial Highlights (continued)

FIRST INVESTORS EQUITY FUNDS

	P E R S H A R E D A T A
			Investment Operations									Less Distributions from
	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total From Investment Operations			Net Investment Income		Net Realized Gain		Total Distributions		Net Asset Value, End of Period
TOTAL RETURN FUND
Class A
2013	$	16.81	$	.27		$	1.99		$	2.26		$	.34	$	.24	$	.58	$	18.49
2014		18.49		.22	(a)		1.65			1.87			.31		.42		.73		19.63
2015		19.63		.21	(a)		(.68	)		(.47	)		.28		.67		.95		18.21
2016		18.21		.23	(a)		1.26			1.49			.27		.43		.70		19.00
2017		19.00		.23	(a)		1.27			1.50			.32		.30		.62		19.88
2018 (h)		19.88		.14	(a)		.13			.27			.17		.35		.52		19.63
Class B
2013		16.53		.15			1.95			2.10			.22		.24		.46		18.17
2014		18.17		.07	(a)		1.61			1.68			.16		.42		.58		19.27
2015		19.27		.06	(a)		(.68	)		(.62	)		.06		.67		.73		17.92
2016		17.92		.09	(a)		1.25			1.34			.13		.43		.56		18.70
2017		18.70		.09	(a)		1.24			1.33			.17		.30		.47		19.56
2018 (h)		19.56		.06	(a)		.12			.18			.09		.35		.44		19.30
Advisor Class
2013 (g)		17.62		.09			.95			1.04			.17		—		.17		18.49
2014		18.49		.29	(a)		1.60			1.89			.32		.42		.74		19.64
2015		19.64		.29	(a)		(.69	)		(.40	)		.31		.67		.98		18.26
2016		18.26		.26	(a)		1.27			1.53			.32		.43		.75		19.04
2017		19.04		.32	(a)		1.30			1.62			.38		.30		.68		19.98
2018 (h)		19.98		.17	(a)		.13			.30			.20		.35		.55		19.73
Institutional Class
2013 (g)		17.62		.10			.95			1.05			.17		—		.17		18.50
2014		18.50		.30	(a)		1.63			1.93			.36		.42		.78		19.65
2015		19.65		.29	(a)		(.70	)		(.41	)		.28		.67		.95		18.29
2016		18.29		.31	(a)		1.28			1.59			.32		.43		.75		19.13
2017		19.13		.32	(a)		1.27			1.59			.37		.30		.67		20.05
2018 (h)		20.05		.18	(a)		.13			.31			.21		.35		.56		19.80

*	Calculated without sales charges.
**	Net of expenses waived or assumed (Note 3).
***	The ratios do not include a reduction of expenses from cash balances maintained with the custodian or from brokerage service arrangements (Note1G).
†	Annualized
††	Not annualized
(a)	Based on average shares during the period.

See notes to financial statements

310

R A T I O S / S U P P L E M E N T A L D A T A
					Ratio to Average Net Assets**									Ratio to Average Net Assets Before Expenses Waived or Assumed
Total Return*			Net Assets End of Period (in thousands)		Net Expenses After Fee Credits			Net Expenses Before Fee Credits***			Net Investment Income			Expenses***			Net Investment Loss			Portfolio Turnover Rate
	13.77	%	$	664,054		1.26	%		1.26	%		1.45	%		N/A			N/A			32	%
	10.18			767,354		1.19			1.19			1.14			N/A			N/A			44
	(2.65	)		784,281		1.18			1.18			1.05			N/A			N/A			40
	8.36			845,726		1.19			1.19			1.27			N/A			N/A			63
	8.09			877,311		1.19			1.19			1.22			N/A			N/A			39
	1.28	††		852,785		1.16	†		1.16	†		1.35	†		N/A			N/A			20	††
	12.98			10,207		2.01			2.01			.71			N/A			N/A			32
	9.29			10,016		1.97			1.97			.36			N/A			N/A			44
	(3.44	)		8,270		1.96			1.96			.27			N/A			N/A			40
	7.61			7,774		1.96			1.96			.50			N/A			N/A			63
	7.23			6,939		1.93			1.93			.48			N/A			N/A			39
	.88	††		6,331		1.92	†		1.92	†		.59	†		N/A			N/A			20	††
	5.89	††		1		1.01	†		1.01	†		1.40	†		4.76	%†		(2.35	)%†		32	††
	10.34			2,106		.78			.78			1.46			N/A			N/A			44
	(2.24	)		976		.78			.78			1.44			N/A			N/A			40
	8.55			1,213		.82			.82			1.63			N/A			N/A			63
	8.69			996		.80			.80			1.61			N/A			N/A			39
	1.44	††		945		.82	†		.82	†		1.68	†		N/A			N/A			20	††
	5.98	††		1		.82	†		.82	†		1.48	†		4.35	†		(2.05	)†		32	††
	10.55			2,885		.78			.78			1.55			N/A			N/A			44
	(2.28	)		30,644		.77			.77			1.47			N/A			N/A			40
	8.88			32,525		.77			.77			1.68			N/A			N/A			63
	8.50			33,545		.77			.77			1.65			N/A			N/A			39
	1.49	††		33,328		.77	†		.77	†		1.74	†		N/A			N/A			20	††

(b)	Due to rounding, amount is less than .005 per share.
(c)	For the period December 1, 2016 (commencement of operations) to September 30, 2017.
(d)	For the period August 1, 2016 (commencement of operations) to September 30, 2016.
(e)	For the period April 1, 2016 (commencement of operations) to September 30, 2016.
(f)	For the period April 6, 2015 (commencement of operations) to September 30, 2015.
(g)	For the period April 1, 2013 (commencement of operations) to September 30, 2013.
(h)	For the period October 1, 2017 to March 31, 2018.

311

Report of Independent Registered Public
Accounting Firm

To the Shareholders and Board of Trustees of
First Investors Income Funds
First Investors Equity Funds

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of the Balanced Income Fund, Floating Rate Fund, Fund For Income, Government Fund, Government Cash Management Fund, International Opportunities Bond Fund, Investment Grade Fund, Limited Duration Bond Fund and Strategic Income Fund, (the “Income Funds”), each a series of the First Investors Income Funds and the Covered Call Strategy Fund, Equity Income Fund, Global Fund, Growth & Income Fund, Hedged U.S. Equity Opportunities Fund, International Fund, Long Short Fund, Opportunity Fund, Real Estate Fund, Select Growth Fund, Special Situations Fund and Total Return Fund (the “Equity Funds”), each a series of First Investors Equity Funds, including the portfolio of investments, as of March 31, 2018, the related statement of operations, the statements of changes in net assets and financial highlights for each of the periods indicated thereon, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Income Funds and Equity Funds as of March 31, 2018, the results of their operations, the changes in their net assets, and their financial highlights for each of the periods indicated thereon, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Income and Equity Funds’ management. Our responsibility is to express an opinion on the Income Funds’ and Equity Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Income Funds and Equity Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the auditor of one or more of the funds in the First Investors Family of Funds since 1978.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Income and Equity Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Income Funds’ and Equity Funds’ internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall

312

presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

TAIT, WELLER & BAKER LLP

Philadelphia, Pennsylvania
May 30, 2018

313

Board Considerations of Advisory Contracts and Fees (Unaudited)

FIRST INVESTORS INCOME FUNDS

Consideration of the Sub-Advisory Agreement with Muzinich & Co., Inc. with respect to the Investment Grade Fund, Limited Duration High Quality Bond Fund and Balanced Income Fund

At the November 16, 2017 meeting (the “November Meeting”) of the Board of Trustees (the “Board” or the “Trustees”) of the First Investors Income Funds (the “Trust”), the Board, including a majority of Board members who are not interested persons of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), discussed and approved, for the Investment Grade Fund, Limited Duration High Quality Bond Fund and Balanced Income Fund (each, a “Fund” and collectively, the “Funds”), the sub-advisory agreement (the “Sub-Advisory Agreement”) with Muzinich & Co., Inc. (the Sub-Adviser”).

The Trustees were provided with materials relating to the proposed appointment of the Sub-Adviser by Foresters Investment Management Company, Inc. (“FIMCO”), the Funds’ investment adviser, and by the Sub-Adviser in advance of and at the November Meeting. The Trustees also met in person with senior officers of FIMCO, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”) and others to receive information on, and discuss the approval of, the Sub-Advisory Agreement. The material factors and conclusions that formed the basis for the approval of the Sub-Advisory Agreement are discussed below.

In making their determinations, the Trustees took into account management style, investment strategies, investment philosophy and process, the Sub-Adviser’s past performance and the Sub-Adviser’s personnel that would be providing services to the Funds. In evaluating the Sub-Advisory Agreement, the Trustees also reviewed information provided by FIMCO and the Sub-Adviser, including the terms of the Sub-Advisory Agreement and information regarding fee arrangements, including the structure of the sub-advisory fee, the method of computing fees, and the frequency of payment of fees. In addition, the Trustees reviewed, among other things, information regarding the Sub-Adviser’s investment program for implementing a high yield strategy for a portion of each Fund’s assets and compliance program. The Board also considered information provided by the Sub-Adviser in connection with the renewal of its sub-advisory agreement with respect to other funds in the First Investors fund complex a few months prior to the November Meeting.

After discussion and consideration among themselves, and with FIMCO, Trust counsel and Independent Legal Counsel, including during an executive session with Independent Legal Counsel held the day before the November Meeting, the Trustees concluded as follows with respect to the Sub-Advisory Agreement:

● The nature and extent of the investment sub-advisory services to be provided to the Funds by the Sub-Adviser was consistent with the terms of the Sub-Advisory Agreement;

● The prospects for satisfactory investment performance of the Funds’ high yield strategy were reasonable;

314

● FIMCO and not the Funds would pay the subadvisory fees of the Sub-Adviser and therefore, there would be no change to the overall advisory fees charged to the Funds by FIMCO;

● The Sub-Adviser had agreed to a fee schedule that included breakpoints to reflect economies of scale, although the Board noted that reduced sub-advisory fees would benefit FIMCO and not the Funds since FIMCO pays the Sub-Adviser out of its investment advisory fees;

● The cost of services to be provided by the Sub-Adviser to the Funds and the profits realized by the Sub-Adviser from its relationship with the Funds would be assessed when the Trustees first consider the renewal of the Sub-Advisory Agreement; and

● The Sub-Adviser does not utilize any soft dollar arrangements or receive other “fall out” or ancillary benefits from its services to the Funds.

Based on all relevant information and factors, none of which was individually determinative of the outcome, the Board, including a majority of the Independent Trustees, concluded that the approval of the Sub-Advisory Agreement was in the best interests of each Fund and its shareholders and unanimously approved such Agreement.

315

Board Considerations of Advisory Contracts and Fees (Unaudited)

FIRST INVESTORS EQUITY FUNDS

Consideration of the Sub-Advisory Agreement with Muzinich & Co., Inc. with respect to the Total Return Fund

At the November 16, 2017 meeting (the “November Meeting”) of the Board of Trustees (the “Board” or the “Trustees”) of the First Investors Equity Funds (the “Trust”), the Board, including a majority of Board members who are not interested persons of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), discussed and approved, for the Total Return Fund (the “Fund”), the sub-advisory agreement (the “Sub-Advisory Agreement”) with Muzinich & Co., Inc. (the Sub-Adviser”).

The Trustees were provided with materials relating to the proposed appointment of the Sub-Adviser by Foresters Investment Management Company, Inc. (“FIMCO”), the Fund’s investment adviser, and by the Sub-Adviser in advance of and at the November Meeting. The Trustees also met in person with senior officers of FIMCO, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”) and others to receive information on, and discuss the approval of, the Sub-Advisory Agreement. The material factors and conclusions that formed the basis for the approval of the Sub-Advisory Agreement are discussed below.

In making their determinations, the Trustees took into account management style, investment strategies, investment philosophy and process, the Sub-Adviser’s past performance and the Sub-Adviser’s personnel that would be providing services to the Fund. In evaluating the Sub-Advisory Agreement, the Trustees also reviewed information provided by FIMCO and the Sub-Adviser, including the terms of the Sub-Advisory Agreement and information regarding fee arrangements, including the structure of the sub-advisory fee, the method of computing fees, and the frequency of payment of fees. In addition, the Trustees reviewed, among other things, information regarding the Sub-Adviser’s investment program for implementing a high yield strategy for a portion of the Fund’s assets and compliance program. The Board also considered information provided by the Sub-Adviser in connection with the renewal of its sub-advisory agreement with respect to other funds in the First Investors fund complex a few months prior to the November Meeting.

After discussion and consideration among themselves, and with FIMCO, Trust counsel and Independent Legal Counsel, including during an executive session with Independent Legal Counsel held the day before the November Meeting, the Trustees concluded as follows with respect to the Sub-Advisory Agreement:

● The nature and extent of the investment sub-advisory services to be provided to the Fund by the Sub-Adviser was consistent with the terms of the Sub-Advisory Agreement;

● The prospects for satisfactory investment performance of the Fund’s high yield strategy were reasonable;

● FIMCO and not the Fund would pay the subadvisory fees of the Sub-Adviser and therefore, there would be no change to the overall advisory fees charged to the Fund by FIMCO;

316

● The Sub-Adviser had agreed to a fee schedule that included breakpoints to reflect economies of scale, although the Board noted that reduced sub-advisory fees would benefit FIMCO and not the Fund since FIMCO pays the Sub-Adviser out of its investment advisory fees;

● The cost of services to be provided by the Sub-Adviser to the Fund and the profits realized by the Sub-Adviser from its relationship with the Fund would be assessed when the Trustees first consider the renewal of the Sub-Advisory Agreement; and

● The Sub-Adviser does not utilize any soft dollar arrangements or receive other “fall out” or ancillary benefits from its services to the Fund.

Based on all relevant information and factors, none of which was individually determinative of the outcome, the Board, including a majority of the Independent Trustees, concluded that the approval of the Sub-Advisory Agreement was in the best interests of the Fund and its shareholders and unanimously approved such Agreement.

317

FIRST INVESTORS INCOME FUNDS

FIRST INVESTORS EQUITY FUNDS

Trustees

Susan E. Artmann

Mary J. Barneby

Charles R. Barton, III

Arthur M. Scutro, Jr.

Mark R. Ward

Officers

E. Blake Moore Jr.*

President

Marc S. Milgram

Chief Compliance Officer

Joseph I. Benedek

Treasurer

Mark S. Spencer

Assistant Treasurer

Mary C. Carty

Secretary

Carol Lerner Brown

Assistant Secretary

* Effective February 22, 2018, Mr. E. Blake Moore Jr. became President of the Funds and Foresters Investment Management Company, Inc.

318

Shareholder Information

Investment Adviser
Foresters Investment Management Company, Inc.
40 Wall Street
New York, NY 10005

Subadviser

(Balanced Income Fund, Floating Rate Fund,
Fund For Income, Investment Grade Fund,
Limited Duration Bond Fund and Total
Return Fund)
Muzinich & Co., Inc.
450 Park Avenue
New York, NY 10022

Subadviser
(International Opportunities Bond Fund)
Brandywine Global Investment Management, LLC
2929 Arch Street
Philadelphia, PA 19104

Subadviser
(Covered Call Strategy Fund)
Ziegler Capital Management, LLC
70 W. Madison Street
Chicago, IL 60602

Subadviser
(Global Fund and Hedged U.S. Equity Opportunities Fund)
Wellington Management Company LLP
280 Congress Street
Boston, MA 02210

Subadviser
(International Fund)
Vontobel Asset Management, Inc.
1540 Broadway
New York, NY 10036

Subadviser
(Long Short Fund)
Lazard Asset Management, LLC
30 Rockefeller Plaza
New York, NY 10112

Subadviser
(Select Growth Fund)
Smith Asset Management Group, L.P.
100 Crescent Court
Dallas, TX 75201

Underwriter
Foresters Financial Services, Inc.
40 Wall Street
New York, NY 10005

CustodianThe Bank of New York Mellon
225 Liberty Street
New York, NY 10286

Transfer Agent
Foresters Investor Services, Inc.
Raritan Plaza I – 8th Floor
Edison, NJ 08837-3620

Independent Registered Public
Accounting FirmTait, Weller & Baker LLP
1818 Market Street
Philadelphia, PA 19103

Legal Counsel
K&L Gates LLP
1601 K Street, N.W.
Washington, D.C. 20006

319

A description of the policies and procedures that the Funds use to vote proxies relating to a portfolio’s securities is available, without charge, upon request by calling toll free 1-800-423-4026 or can be viewed online or downloaded from the EDGAR database on the U.S. Securities and Exchange Commission’s (“SEC”) internet website at http://www.sec.gov. In addition, information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available, without charge, upon request in writing or by calling 1-800-423-4026 and on the SEC’s internet website at http://www.sec.gov.

The Funds file their complete schedule of portfolio holdings with the SEC on Form N-Q for the first and third quarters of each fiscal year. The Funds’ Form N-Q is available on the SEC’s website at http://www.sec.gov; and may also 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 1-800-SEC-0330. The schedule of portfolio holdings is available, without charge, upon request in writing or by calling 1-800-423-4026.

320

NOTES

321

 

Item 2. Code of Ethics

Not applicable for semi-annual report

Item 3. Audit Committee Financial Expert

Not applicable for semi-annual report

Item 4. Principal Accountant Fees and Services

Not applicable for semi-annual report

Item 5. Audit Committee of Listed Registrants

Not applicable

Item 6. Schedule of Investments

(a) Schedule is included as part of the report to shareholders filed under Item 1 of this Form.

(b) Not applicable

Item 7. Disclosure of Proxy Voting Policies & Procedures for Closed-End Management Investment Companies

Not applicable to open-end investment companies

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable to open-end investment companies

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers

Not applicable to open-end investment companies

Item 10. Submission of Matters to a Vote of Security Holders

There were no material changes to the procedure by which shareholders may recommend nominees to the Registrant's Board of Trustees.

Item 11. Controls and Procedures

(a)       The Registrant's Principal Executive Officer and Principal Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective, based on their evaluation of these

disclosure controls and procedures as of a date within 90 days of the filing date of this report.

(b)       There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 as amended) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits

(a)(1) Code of Ethics - Not applicable for semi-annual report

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Filed herewith

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Filed herewith

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.

First Investors Income Funds

By	/s/ E. Blake Moore Jr.
	E. Blake Moore Jr.
	President and Principal Executive Officer

Date: May 25, 2018

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/ E. Blake Moore Jr.
	E. Blake Moore Jr.
	President and Principal Executive Officer
By	/s/ Joseph I. Benedek
	Joseph I. Benedek
	Treasurer and Principal Financial Officer
Date:	May 25, 2018