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 NUMBERS 811-6618 |
FIRST INVESTORS EQUITY FUNDS |
(Exact name of registrant as specified in charter) |
110 Wall Street |
New York, NY 10005 |
(Address of principal executive offices) (Zip code) |
Joseph I. Benedek |
First Investors Management Company, Inc. |
Raritan Plaza I |
Edison, NJ 08837-3620 |
1-732-855-2712 |
(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, 2008 |
DATE OF REPORTING PERIOD: MARCH 31, 2008 |
Item 1. Reports to Stockholders |
The semi-annual report to stockholders follows |
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/equityincomex1x1.jpg)
FOREWORD | ||
This report is for the information of the shareholders of the Trusts. It is each | ||
Trust’s practice to mail only one copy of its annual and semi-annual reports | ||
to all family members who reside in the same household. Additional copies | ||
of the reports will be mailed if requested by any shareholder in writing or by | ||
calling 1-800-423-4026. Each Trust will ensure that separate reports are sent | ||
to any shareholder who subsequently changes his or her mailing address. | ||
The views expressed in the Market Overview letter reflect those views of the | ||
Director of Equities and Director of Fixed Income of First Investors Manage- | ||
ment Company, Inc. through the end of the period covered. Any such views | ||
are subject to change at any time based upon market or other conditions and | ||
we disclaim any responsibility to update such views. These views may not be | ||
relied on as investment advice. | ||
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 ad- | ||
dress: First Investors Corporation, 110 Wall Street, New York, NY 10005, | ||
or by visiting our website at www.firstinvestors.com. You should consider | ||
the investment objectives, risks, charges and expenses of a Fund care- | ||
fully 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 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. | ||
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 Fund, including information about its Trustees. |
Market Overview |
FIRST INVESTORS INCOME FUNDS |
FIRST INVESTORS EQUITY FUNDS |
Dear Investor: |
The financial markets were extremely volatile during the past six months. Subprime |
mortgage problems, which had begun to impact the financial markets last summer, |
became a major factor for investors in the fourth quarter by creating two major chal- |
lenges. The first was a crisis of confidence that occurred as financial firms conserved |
their dwindling capital because of their subprime exposure or fears of counterparties’ |
subprime exposure. As a result, there was very little liquidity in the markets — mean- |
ing firms were not willing to take risk or make markets. Markets had big swings, |
trading off of supply and demand instead of fundamentals. At times during the last |
few months, certain markets stopped functioning, while others were operating under |
extreme stress. The crisis probably peaked with the bailout of Bear Stearns in March. |
The extraordinary actions taken by the Federal Reserve (the “Fed”) in response to |
Bear Stearns’s near-failure appeared to have restored some stability to the markets as |
the first quarter ended. |
The second challenge for investors was a substantial slowing in the economy. Fourth |
quarter growth slowed to an anemic 0.6% pace, followed by an equally anemic |
0.06% in the first quarter of this year. Consumers, facing tighter credit conditions |
and rising gasoline and food prices, reduced spending. Corporations responded by |
cutting back spending as well. The unemployment rate rose to 5.1% in March, its |
highest level since 2005. The lone bright spot in the economy was the export sec- |
tor, as overseas economies remained relatively strong. By the end of the first quarter, |
most economic forecasters agreed that the U.S. was in a recession. This by itself — |
without a financial crisis — created a difficult environment for investors, especially |
in riskier markets. The combination of a financial crisis and an economic slowdown |
created an extraordinarily challenging environment. |
The Fed was very active as it tried to both restore liquidity to the markets and head |
off recession. During the reporting period, it has cut the benchmark federal funds rate |
from 5.25% to 2.25%, an unprecedented pace of monetary easing. In addition to low- |
ering rates, the Fed also made its discount lending window available to more firms. |
The Fed and other regulators have taken a number of steps to help the housing market |
and the financial markets. |
; 1 |
Market Overview (continued) |
FIRST INVESTORS INCOME FUNDS |
FIRST INVESTORS EQUITY FUNDS |
Congress and the President also agreed to a fiscal stimulus package that should eventu- |
ally help the economy. The mailing of rebate checks began in May. These efforts have |
restored some stability to the markets, although the economy continues to look weak. |
Bond market returns in the aggregate were positive: the Merrill Lynch Broad Market |
Index was up over 5% for the two quarters. But returns by sector varied substantially, |
from up 8.5% in the Treasury sector to down 4.2% in the high yield bond market. |
High quality bonds benefited from the substantial decline in benchmark U.S. Trea- |
sury rates. Specifically, the two-year U.S. Treasury note yield fell from 3.99% to |
1.59%, its lowest quarterly close since 2004, and the ten-year note yield fell from |
4.59% to 3.41%, its lowest quarterly close in over ten years. |
Riskier sectors of the bond market generally underperformed the Treasury market |
due to both a reduced desire on the part of investors to take risk and the slowing |
economy. While reduced liquidity in the market adversely affected high quality mort- |
gage-backed bonds, the sector nonetheless had a relatively strong showing, returning |
5.7%. In contrast, the investment grade corporate bond market returned only 1.8% |
as the slowing economy and concern about financial issuers hurt performance. Not |
surprisingly, given the investment environment, high yield corporate bonds were one |
of the worse performing sectors in the bond market. Lastly, money market yields fell |
substantially during the review period, reflecting the Fed’s easing of monetary policy. |
Given the challenges in the financial system and the economic environment, the stock |
market was very volatile over the reporting period. Most segments of the market post- |
ed losses: large-cap stocks, as measured by the S&P 500 Index were down 12.5%; |
mid-cap stocks, as measured by the S&P MidCap 400 Index, were off 11.3%; and |
small-cap stocks, as measured by the Russell 2000 Index, lost 14.0%. Performance |
was not much better in international markets, as the MSCI-EAFE Index, an index that |
measures performance in developed markets, excluding the U.S., was down 10.4%. |
2 |
Thank you for placing your trust in First Investors. As always, we appreciate the |
opportunity to serve your investment needs. |
Sincerely, |
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/equityincomex5x1.jpg)
Edwin D. Miska |
Director of Equities |
First Investors Management Company, Inc. |
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/equityincomex5x2.jpg)
Clark D. Wagner |
Director of Fixed Income |
First Investors Management Company, Inc. |
May 1, 2008 |
This Market Overview is not part of the Funds’ financial report and is submitted for |
the general information of the shareholders of the Funds. It is not authorized for |
distribution to prospective investors in the Funds, unless preceded or accompanied |
by an effective prospectus. The Market Overview reflects conditions through the end |
of the period as stated on the cover. Market conditions are subject to change. This |
Market Overview may not be relied upon as investment advice or an indication of |
current or future trading intent on behalf of any Fund. |
There are a variety of risks associated with investing in mutual funds. For stock funds, |
the risks include market risk (the risk that the entire stock market will decline because |
of an event such as a deterioration in the economy or a rise in interest rates), as well as |
special risks associated with investing in certain types of stock funds, such as small- |
cap, global and international funds. For bond funds, the risks include interest rate risk |
and credit risk. Interest rate risk is the risk that bonds will decrease in value as interest |
rates rise. As a general matter, longer-term bonds fluctuate more than shorter-term |
bonds in reaction to changes in interest rates. Credit risk is the risk that bonds will de- |
cline in value as the result of a decline in the credit rating of the bonds or the economy |
as a whole, or that the issuer will be unable to pay interest and/or principal when due. |
You should consult your prospectus for a precise explanation of the risks associated |
with your fund. |
3 |
Understanding Your Fund’s Expenses |
FIRST INVESTORS INCOME FUNDS |
FIRST INVESTORS EQUITY FUNDS |
As a mutual fund shareholder, you incur two types of costs: (1) transaction costs, in- |
cluding a sales charge (load) on purchase payments (on Class A shares only), a contin- |
gent deferred sales charge on redemptions (on Class B shares only); and (2) ongoing |
costs, including advisory fees; distribution and service fees (12b-1); 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, 2007, and held for the entire six-month period ended March 31, |
2008. 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 hypotheti- |
cal expenses based on the Fund’s actual expense ratio for Class A and Class B shares, |
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). 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 transaction costs were |
included, your costs would have been higher. |
4 |
Fund Expenses | |||
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 4 for | |||
a detailed explanation of the information presented in these examples. | |||
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/07) | (3/31/08) | (10/1/07–3/31/08)* | |
Expense Example–Class A Shares | |||
Actual | $1,000.00 | $1,017.93 | $4.04 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,021.00 | $4.04 |
Expense Example–Class B Shares | |||
Actual | $1,000.00 | $1,014.15 | $7.80 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,017.25 | $7.82 |
*Expenses are equal to the annualized expense ratio of .80% for Class A shares and 1.55% for | |||
Class B shares, multiplied by the average account value over the period, multiplied by 183/366 (to | |||
reflect the one-half year period). Expenses paid during the period are net of expenses waived. | |||
Portfolio Composition | |||
BY SECTOR |
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/equityincomex7x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2008, and |
are based on the total value of investments. |
5 |
Portfolio of Investments | |||||||
CASH MANAGEMENT FUND | |||||||
March 31, 2008 | |||||||
Principal | Interest | ||||||
Amount | Security | Rate* | Value | ||||
CORPORATE NOTES—65.5% | |||||||
$ 1,000 | M | Abbott Laboratories, 9/15/08 | 4.54 | % | $ | 1,003,655 | |
10,000 | M | Anheuser-Busch Cos., Inc., 6/5/08 (a) | 2.65 | 9,952,057 | |||
Archer-Daniels-Midland Co.: | |||||||
2,000 | M | 4/8/08 (a) | 4.27 | 1,998,319 | |||
4,000 | M | 6/20/08 (a) | 2.72 | 3,975,784 | |||
2,000 | M | 6/26/08 (a) | 2.85 | 1,986,349 | |||
Chevron Funding Corp.: | |||||||
7,000 | M | 4/18/08 | 2.15 | 6,992,888 | |||
5,000 | M | 4/25/08 | 2.15 | 4,992,832 | |||
9,600 | M | Coca Cola Co., 4/18/08 (a) | 2.63 | 9,588,056 | |||
Dupont (E.I.) de Nemours & Co.: | |||||||
6,500 | M | 4/25/08 (a) | 2.22 | 6,490,376 | |||
5,000 | M | 4/29/08 (a) | 2.22 | 4,991,364 | |||
2,000 | M | Federal Home Loan Bank, 4/25/08 | 2.14 | 1,997,146 | |||
1,000 | M | Fifth Third Bank, 8/15/08 | 4.76 | 994,884 | |||
General Electric Capital Corp.: | |||||||
500 | M | 4/1/08 (b) | 5.32 | 500,000 | |||
500 | M | 4/1/08 (b) | 5.10 | 500,000 | |||
1,000 | M | 4/1/08 (b) | 4.44 | 1,000,000 | |||
500 | M | 5/1/08 | 4.75 | 499,477 | |||
4,500 | M | 7/2/08 | 2.78 | 4,467,961 | |||
4,000 | M | 7/14/08 | 2.45 | 3,971,681 | |||
1,000 | M | 7/24/08 | 4.63 | 1,011,714 | |||
Hershey Foods Co.: | |||||||
8,000 | M | 4/2/08 (a) | 2.85 | 7,999,364 | |||
4,500 | M | 4/10/08 (a) | 2.70 | 4,496,957 | |||
5,000 | M | IBM International Group Capital, LLC, 5/12/08 (a) | 2.19 | 4,987,523 | |||
10,000 | M | Illinois Tool Works, Inc., 4/4/08 | 2.70 | 9,997,746 | |||
2,000 | M | International Business Machines Corp., 2/1/09 | 2.81 | 2,040,926 | |||
7,490 | M | Kimberly Clark Worldwide, 4/11/08 (a) | 2.10 | 7,485,630 | |||
6,500 | M | Madison Gas & Electric Co., 4/11/08 | 2.35 | 6,495,756 | |||
6,955 | M | Pepsi Bottling Holdings, Inc., 2/17/09 (c) | 2.85 | 7,118,416 | |||
Pfizer, Inc.: | |||||||
8,500 | M | 4/7/08 (a) | 4.40 | 8,493,674 | |||
3,500 | M | 5/1/08 (a) | 4.37 | 3,487,014 | |||
1,500 | M | Procter & Gamble Co., 8/15/08 | 3.51 | 1,504,123 | |||
3,000 | M | Procter & Gamble International Funding, | |||||
SCA, 4/10/08 (a) | 2.70 | 2,997,971 | |||||
Prudential Funding Corp.: | |||||||
5,000 | M | 4/10/08 | 2.90 | 4,996,365 | |||
5,000 | M | 6/4/08 | 2.30 | 4,979,554 | |||
6 |
Principal | Interest | ||||||
Amount | Security | Rate* | Value | ||||
CORPORATE NOTES (continued) | |||||||
Stanley Works.: | |||||||
$ 3,000 | M | 4/3/08 (a) | 4.10 | % | $ | 2,999,310 | |
2,000 | M | 6/18/08 (a) | 2.10 | 1,990,893 | |||
4,500 | M | 6/24/08 (a) | 2.15 | 4,477,407 | |||
Toyota Motor Credit Corp.: | |||||||
6,000M | M | 6/3/08 | 2.79 | 5,970,646 | |||
6,500 | M | 6/3/08 | 2.80 | 6,468,083 | |||
Total Value of Corporate Notes (cost $165,901,901) | 165,901,901 | ||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS—15.9% | |||||||
5,000 | M | Fannie Mae, 5/9/08 | 3.54 | 4,981,178 | |||
Federal Home Loan Bank: | |||||||
6,000 | M | 5/5/08 | 4.40 | 6,008,912 | |||
2,000 | M | 5/23/08 | 3.56 | 1,989,639 | |||
5,000 | M | 8/20/08 | 2.13 | 5,051,330 | |||
3,000 | M | 1/7/09 | 4.12 | 3,000,000 | |||
3,750 | M | 1/22/09 | 3.65 | 3,750,000 | |||
1,000 | M | 3/3/09 | 2.73 | 1,000,692 | |||
500 | M | 3/17/09 | 2.58 | 500,415 | |||
Freddie Mac: | |||||||
2,408 | M | 4/15/08 | 4.25 | 2,409,252 | |||
4,500 | M | 1/14/09 | 3.54 | 4,513,706 | |||
3,250 | M | 1/30/09 | 2.81 | 3,250,000 | |||
3,700 | M | 2/19/09 | 2.80 | 3,700,288 | |||
Total Value of U.S. Government Agency Obligations (cost $40,155,412) | 40,155,412 | ||||||
CERTIFICATES OF DEPOSIT—7.9% | |||||||
Citibank, NA: | |||||||
6,900 | M | 4/16/08 | 3.85 | 6,900,000 | |||
5,000 | M | 5/28/08 | 3.07 | 5,000,000 | |||
8,000 | M | JPMorgan Chase & Co., 8/19/08 | 2.85 | 8,000,000 | |||
Total Value of Certificates of Deposit (cost $19,900,000) | 19,900,000 | ||||||
7 |
Portfolio of Investments (continued) | ||||||||
CASH MANAGEMENT FUND | ||||||||
March 31, 2008 | ||||||||
Principal | Interest | |||||||
Amount | Security | Rate* | Value | |||||
FLOATING RATE NOTES—6.7% | ||||||||
$ 5,450 | M | Advanced Packaging Corp., 10/1/36 | ||||||
(LOC; Fifth Third Bank) | 3.65 | % | $ | 5,450,000 | ||||
3,800 | M | Genesys Medsports, LLC, 1/1/27 | ||||||
(LOC; Fifth Third Bank) | 3.65 | 3,800,000 | ||||||
4,750 | M | International Business Machines Corp., 9/8/08 (c) | 3.09 | 4,748,413 | ||||
3,000 | M | Procter & Gamble International Funding, SCA, 2/19/09 | 3.14 | 3,000,000 | ||||
Total Value of Floating Rate Notes (cost $16,998,413) | 16,998,413 | |||||||
BANKERS’ ACCEPTANCES—3.9% | ||||||||
Bank of America, NA: | ||||||||
1,094 | M | 5/16/08 | 3.15 | 1,089,622 | ||||
2,106 | M | 5/19/08 | 3.15 | 2,097,269 | ||||
1,699 | M | 5/21/08 | 3.15 | 1,691,927 | ||||
5,000 | M | 7/14/08 | 3.55 | 4,948,340 | ||||
Total Value of Bankers’ Acceptances (cost $9,827,158) | 9,827,158 | |||||||
Total Value of Investments (cost $252,782,884) ** | 99.9 | % | 252,782,884 | |||||
Other Assets, Less Liabilities | .1 | 269,543 | ||||||
Net Assets | 100.0 | % | $ | 253,052,427 | ||||
* 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, 2008. | ||||||||
** Aggregate cost for federal income tax purposes is the same. | ||||||||
(a) Security exempt from registration under Section 4(2) of the Securities Act of 1933 (see Note 4). | ||||||||
(b) Denotes a step bond (a zero coupon bond that converts to a fixed interest rate at a | ||||||||
designated date). | ||||||||
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 4). | ||||||||
Summary of Abbreviations: | ||||||||
LOC Letters of Credit | ||||||||
8 | See notes to financial statements |
Fund Expenses | |||
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 4 for | |||
a detailed explanation of the information presented in these examples. | |||
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/07) | (3/31/08) | (10/1/07–3/31/08)* | |
Expense Example–Class A Shares | |||
Actual | $1,000.00 | $1,051.38 | $5.64 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,019.50 | $5.55 |
Expense Example–Class B Shares | |||
Actual | $1,000.00 | $1,047.72 | $9.21 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,016.00 | $9.07 |
*Expenses are equal to the annualized expense ratio of 1.10% for Class A shares and 1.80% for | |||
Class B shares, multiplied by the average account value over the period, multiplied by 183/366 (to | |||
reflect the one-half year period). Expenses paid during the period are net of expenses waived. | |||
Portfolio Composition | |||
BY SECTOR |
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/equityincomex11x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2008, and |
are based on the total value of investments. |
; 9 |
Portfolio of Investments | |||||||
GOVERNMENT FUND | |||||||
March 31, 2008 | |||||||
Principal | |||||||
Amount | Security | Value | |||||
MORTGAGE-BACKED CERTIFICATES—99.6% | |||||||
Fannie Mae—16.3% | |||||||
$15,183 | M | 5.5%, 4/1/2033–2/1/2038 | $ | 15,374,469 | |||
21,463 | M | 6%, 1/1/2037–4/1/2038 | 22,010,832 | ||||
37,385,301 | |||||||
Government National Mortgage | |||||||
Association I Program—83.3% | |||||||
32,357 | M | 5%, 5/15/2033–5/15/2036 | 32,413,863 | ||||
46,523 | M | 5.5%, 3/15/2033–4/15/2037 | 47,577,730 | ||||
68,543 | M | 6%, 3/15/2031–9/15/2037 | 71,008,550 | ||||
31,318 | M | 6.5%, 10/15/2028–3/15/2038 | 32,770,987 | ||||
4,423 | M | 7%, 4/15/2032–8/15/2035 | 4,744,767 | ||||
1,789 | M | 7.5%, 7/15/2023–6/15/2034 | 1,926,529 | ||||
190,442,426 | |||||||
Total Value of Mortgage-Backed Certificates (cost $225,031,924) | 227,827,727 | ||||||
SHORT-TERM U.S. GOVERNMENT | |||||||
OBLIGATIONS—4.0% | |||||||
9,200 | M | U.S. Treasury Bills, 1.41%, 4/15/08 (cost $9,194,955) | 9,194,955 | ||||
Total Value of Investments (cost $234,226,879) | 103.6 | % | 237,022,682 | ||||
Excess of Liabilities Over Other Assets | (3.6 | ) | (8,240,724) | ||||
Net Assets | 100.0 | % | $ | 228,781,958 | |||
10 | See notes to financial statements |
Fund Expenses | |||
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 4 for | |||
a detailed explanation of the information presented in these examples. | |||
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/07) | (3/31/08) | (10/1/07–3/31/08)* | |
Expense Example–Class A Shares | |||
Actual | $1,000.00 | $1,030.19 | $5.58 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,019.50 | $5.55 |
Expense Example–Class B Shares | |||
Actual | $1,000.00 | $1,026.69 | $9.12 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,016.00 | $9.07 |
*Expenses are equal to the annualized expense ratio of 1.10% for Class A shares and 1.80% for | |||
Class B shares, multiplied by the average account value over the period, multiplied by 183/366 | |||
(to reflect the one-half year period). Expenses paid during the period are net of expenses waived. | |||
Portfolio Composition | |||
TOP TEN SECTORS |
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/equityincomex13x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2008, and |
are based on the total value of investments. |
11 |
Portfolio of Investments | |||||||
INVESTMENT GRADE FUND | |||||||
March 31, 2008 | |||||||
Principal | |||||||
Amount | Security | Value | |||||
CORPORATE BONDS—67.4% | |||||||
Aerospace/Defense—1.7% | |||||||
$ 2,000 | M | Boeing Co., 7.25%, 2025 | $ | 2,350,126 | |||
Honeywell International, Inc.: | |||||||
975 | M | 6.125%, 2011 | 1,056,420 | ||||
900 | M | 4.25%, 2013 | 910,112 | ||||
400 | M | Precision Castparts Corp., 5.6%, 2013 | 444,754 | ||||
717 | M | TRW, Inc., 7.125%, 2009 | 745,576 | ||||
5,506,988 | |||||||
Automotive—.5% | |||||||
1,700 | M | Daimler Chrysler NA Holdings Corp., 5.75%, 2009 | 1,716,323 | ||||
Chemicals—1.7% | |||||||
1,700 | M | Air Products & Chemicals, Inc., 4.125%, 2010 | 1,760,328 | ||||
1,700 | M | Cabot Corp., 5.25%, 2013 (a) | 1,830,067 | ||||
1,800 | M | Praxair, Inc., 5.375%, 2016 | 1,831,131 | ||||
5,421,526 | |||||||
Consumer Durables—.5% | |||||||
1,650 | M | Black & Decker Corp., 5.75%, 2016 | 1,589,699 | ||||
Consumer Non-Durables—2.1% | |||||||
1,800 | M | Avon Products, Inc., 4.8%, 2013 | 1,829,444 | ||||
1,000 | M | Colgate-Palmolive Co., 5.98%, 2012 | 1,079,459 | ||||
1,600 | M | Newell Rubbermaid, Inc., 6.75%, 2012 | 1,677,298 | ||||
2,000 | M | Procter & Gamble Co., 4.85%, 2015 | 2,096,640 | ||||
6,682,841 | |||||||
Energy—5.3% | |||||||
1,700 | M | Anadarko Petroleum Corp., 5.95%, 2016 | 1,760,962 | ||||
2,700 | M | Canadian Natural Resources, Ltd., 5.9%, 2018 | 2,767,519 | ||||
1,550 | M | Husky Oil Ltd., 8.9%, 2028 | 1,572,898 | ||||
850 | M | Kinder Morgan Finance Co., 5.35%, 2011 | 847,875 | ||||
2,800 | M | Nabors Industries, Inc., 6.15%, 2018 (a) | 2,871,602 | ||||
2,000 | M | Nexen, Inc., 5.05%, 2013 | 2,013,218 | ||||
2,000 | M | Northern Border Pipeline Co., 7.1%, 2011 | 2,133,954 | ||||
2,150 | M | Pacific Energy Partners LP, 7.125%, 2014 | 2,277,504 | ||||
500 | M | Tesoro Corp., 6.5%, 2017 | 450,000 | ||||
16,695,532 | |||||||
12 |
Principal | |||||||
Amount | Security | Value | |||||
Financial Services—7.3% | |||||||
$ 1,800 | M | Compass Bank, 6.4%, 2017 | $ | 1,761,849 | |||
1,200 | M | Endurance Specialty Holdings, Ltd., 7%, 2034 | 1,151,526 | ||||
2,000 | M | Fifth Third Bancorp, 5.45%, 2017 | 1,837,272 | ||||
1,000 | M | Fleet Capital Trust II, 7.92%, 2026 | 1,034,630 | ||||
600 | M | GATX Financial Corp., 5.5%, 2012 | 630,722 | ||||
625 | M | Greenpoint Bank, 9.25%, 2010 | 653,556 | ||||
2,420 | M | Hibernia Corp., 5.35%, 2014 | 2,160,583 | ||||
1,880 | M | Independence Community Bank Corp., 4.9%, 2010 | 1,875,606 | ||||
2,000 | M | JPMorgan Chase & Co., 5.25%, 2015 | 1,990,418 | ||||
1,200 | M | National City Bank of Pennsylvania, 7.25%, 2011 | 1,153,391 | ||||
1,298 | M | Republic NY Corp., 7.75%, 2009 | 1,339,575 | ||||
2,000 | M | Royal Bank of Scotland Group PLC, 5%, 2014 | 1,993,308 | ||||
1,600 | M | SunTrust Bank, Inc., 7.25%, 2018 | 1,639,170 | ||||
1,800 | M | Wachovia Corp., 5.75%, 2018 | 1,766,335 | ||||
2,565 | M | Washington Mutual Bank, 5.95%, 2013 | 2,195,398 | ||||
23,183,339 | |||||||
Financials—11.7% | |||||||
395 | M | American Express Co., 6.15%, 2017 | 393,873 | ||||
American General Finance Corp.: | |||||||
875 | M | 8.125%, 2009 | 918,285 | ||||
1,800 | M | 6.9%, 2017 | 1,762,151 | ||||
3,500 | M | Bear Stearns Cos., Inc., 7.25%, 2018 | 3,623,211 | ||||
900 | M | Caterpillar Financial Services Corp., 4.6%, 2014 | 908,991 | ||||
ERAC USA Finance Enterprise Co.: | |||||||
1,775 | M | 7.35%, 2008 (a) | 1,787,594 | ||||
1,170 | M | 8%, 2011 (a) | 1,248,933 | ||||
2,363 | M | Ford Motor Credit Co., 9.75%, 2010 | 2,105,984 | ||||
2,625 | M | General Motors Acceptance Corp., 7.75%, 2010 | 2,271,431 | ||||
Goldman Sachs Group, Inc.: | |||||||
2,700 | M | 5.95%, 2018 | 2,678,578 | ||||
2,300 | M | 6.15%, 2018 | 2,300,830 | ||||
1,600 | M | 6.45%, 2036 | 1,446,349 | ||||
900 | M | HSBC Finance Corp., 5%, 2015 | 848,369 | ||||
International Lease Finance Corp.: | |||||||
2,000 | M | 5.625%, 2013 | 1,960,598 | ||||
2,600 | M | 6.375%, 2013 | 2,600,730 | ||||
13 |
Portfolio of Investments (continued) | |||||||
INVESTMENT GRADE FUND | |||||||
March 31, 2008 | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Financials (continued) | |||||||
Lehman Brothers Holdings, Inc.: | |||||||
$ 1,800 | M | 5.625%, 2013 | $ | 1,752,071 | |||
3,200 | M | 6.75%, 2017 | 3,081,584 | ||||
2,500 | M | Merrill Lynch & Co., 5.45%, 2013 | 2,462,228 | ||||
3,100 | M | Morgan Stanley, 5.95%, 2017 | 3,001,457 | ||||
37,153,247 | |||||||
Food/Beverage/Tobacco—5.1% | |||||||
900 | M | Anheuser-Busch Cos., Inc., 4.375%, 2013 | 914,710 | ||||
1,980 | M | Bunge Limited Finance Corp., 5.875%, 2013 | 2,066,211 | ||||
Cargill, Inc.: | |||||||
900 | M | 5.6%, 2012 (a) | 923,263 | ||||
1,900 | M | 6%, 2017 (a) | 1,919,920 | ||||
1,350 | M | Coca-Cola Co., 5.35%, 2017 | 1,411,331 | ||||
1,500 | M | Coca-Cola Enterprises, Inc., 7.125%, 2017 | 1,740,638 | ||||
1,949 | M | ConAgra Foods, Inc., 6.75%, 2011 | 2,103,143 | ||||
900 | M | Diageo Capital PLC, 5.2%, 2013 | 932,082 | ||||
900 | M | Kellogg Co., 4.25%, 2013 | 898,194 | ||||
910 | M | Pepsi Bottling Group, LLC, 5%, 2013 | 951,369 | ||||
1,000 | M | Pepsi Bottling Group, Inc., 7%, 2029 | 1,163,666 | ||||
1,225 | M | UST, Inc., 7.25%, 2009 | 1,274,409 | ||||
16,298,936 | |||||||
Food/Drug—.9% | |||||||
2,000 | M | Kroger Co., 6.75%, 2012 | 2,143,318 | ||||
700 | M | Safeway, Inc., 6.5%, 2011 | 744,602 | ||||
2,887,920 | |||||||
Forest Products/Containers—.5% | |||||||
1,725 | M | Sappi Papier Holding AG, 6.75%, 2012 (a) | 1,566,631 | ||||
Gaming/Leisure—.9% | |||||||
2,000 | M | International Speedway Corp., 4.2%, 2009 | 2,011,674 | ||||
750 | M | MGM Mirage, Inc., 8.5%, 2010 | 778,125 | ||||
2,789,799 | |||||||
14 |
Principal | |||||||
Amount | Security | Value | |||||
Health Care—2.9% | |||||||
$ 2,000 | M | Abbott Laboratories, 5.875%, 2016 | $ | 2,135,386 | |||
2,364 | M | Baxter International, Inc., 5.9%, 2016 | 2,499,372 | ||||
1,880 | M | Becton, Dickinson & Co., 7.15%, 2009 | 2,007,003 | ||||
2,500 | M | Fisher Scientific International, Inc., 6.75%, 2014 | 2,552,335 | ||||
9,194,096 | |||||||
Housing—.6% | |||||||
1,970 | M | D.R. Horton, Inc., 8%, 2009 | 1,945,375 | ||||
Information Technology—2.5% | |||||||
2,645 | M | International Business Machines Corp., 7%, 2025 | 2,925,106 | ||||
2,000 | M | Oracle Corp., 5.25%, 2016 | 2,002,132 | ||||
1,000 | M | Pitney Bowes, Inc., 5.75%, 2017 | 1,019,306 | ||||
1,750 | M | Xerox Corp., 6.875%, 2011 | 1,831,463 | ||||
7,778,007 | |||||||
Manufacturing—2.3% | |||||||
1,750 | M | Briggs & Stratton Corp., 8.875%, 2011 | 1,837,500 | ||||
2,500 | M | Crane Co., 6.55%, 2036 | 2,330,943 | ||||
1,112 | M | Hanson Australia Funding, Ltd., 5.25%, 2013 | 1,119,522 | ||||
646 | M | Hanson PLC, 7.875%, 2010 | 700,617 | ||||
875 | M | Ingersoll-Rand Co., 9%, 2021 | 1,186,749 | ||||
7,175,331 | |||||||
Manufacturing Diversified—.3% | |||||||
900 | M | Siemens Financieringsmaatschappij NV, 5.75%, 2016 (a) | 922,845 | ||||
Media-Broadcasting—1.3% | |||||||
2,000 | M | Comcast Cable Communications, Inc., 7.125%, 2013 | 2,127,116 | ||||
2,000 | M | Cox Communications, Inc., 4.625%, 2013 | 1,923,148 | ||||
4,050,264 | |||||||
Media-Diversified—2.7% | |||||||
1,575 | M | AOL Time Warner, Inc., 6.875%, 2012 | 1,627,366 | ||||
1,800 | M | McGraw-Hill Cos., Inc., 5.9%, 2017 | 1,788,957 | ||||
1,800 | M | News America, Inc., 5.3%, 2014 | 1,802,718 | ||||
1,000 | M | Time Warner, Inc., 9.125%, 2013 | 1,121,820 | ||||
15 |
Portfolio of Investments (continued) | |||||||
INVESTMENT GRADE FUND | |||||||
March 31, 2008 | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Media-Diversified (continued) | |||||||
Viacom, Inc.: | |||||||
$ 1,200 | M | 5.75%, 2011 | $ | 1,213,620 | |||
500 | M | 8.625%, 2012 | 540,523 | ||||
360 | M | 8.875%, 2014 | 393,515 | ||||
8,488,519 | |||||||
Metals/Mining—1.1% | |||||||
1,300 | M | Alcoa, Inc., 6%, 2012 | 1,350,835 | ||||
2,000 | M | Vale Overseas, Ltd., 6.25%, 2017 | 1,996,756 | ||||
3,347,591 | |||||||
Real Estate Investment Trusts—2.1% | |||||||
AvalonBay Communities, Inc.: | |||||||
1,900 | M | 7.5%, 2010 | 2,030,142 | ||||
200 | M | 6.625%, 2011 | 207,417 | ||||
1,350 | M | Duke Weeks Realty Corp., 7.75%, 2009 | 1,399,291 | ||||
1,200 | M | Health Care Property Investors, Inc., 6%, 2017 | 981,314 | ||||
1,900 | M | Mack-Cali Realty LP, 7.75%, 2011 | 1,992,496 | ||||
6,610,660 | |||||||
Retail—.9% | |||||||
McDonald’s Corp.: | |||||||
1,800 | M | 4.3%, 2013 | 1,823,267 | ||||
1,000 | M | 5.8%, 2017 | 1,051,925 | ||||
2,875,192 | |||||||
Telecommunications—4.3% | |||||||
2,000 | M | Deutsche Telekom AG, 8%, 2010 | 2,140,486 | ||||
1,359 | M | GTE Corp., 6.84%, 2018 | 1,459,452 | ||||
2,000 | M | SBC Communications, Inc., 6.25%, 2011 | 2,095,456 | ||||
1,725 | M | Sprint Capital Corp., 6.375%, 2009 | 1,699,558 | ||||
3,600 | M | Verizon Communications, Inc., 5.5%, 2018 | 3,512,851 | ||||
800 | M | Verizon New York, Inc., 6.875%, 2012 | 842,094 | ||||
1,750 | M | Vodafone AirTouch PLC, 7.75%, 2010 | 1,855,404 | ||||
13,605,301 | |||||||
16 |
Principal | |||||||
Amount | Security | Value | |||||
Transportation—1.7% | |||||||
$ 2,000 | M | Burlington Northern Santa Fe Corp., 4.3%, 2013 | $ | 1,965,338 | |||
2,000 | M | Canadian National Railway Co., 6.25%, 2034 | 1,947,446 | ||||
1,000 | M | Norfolk Southern Corp., 7.7%, 2017 | 1,158,906 | ||||
300 | M | Union Pacific Railroad, 7.28%, 2011 | 337,315 | ||||
5,409,005 | |||||||
Utilities—5.7% | |||||||
1,350 | M | Carolina Power & Light, Inc., 5.15%, 2015 | 1,376,584 | ||||
1,800 | M | Consumers Energy Co., 6.875%, 2018 | 1,957,637 | ||||
1,450 | M | Dominion Resources, Inc., 5%, 2013 | 1,482,268 | ||||
2,650 | M | Entergy Gulf States, Inc., 5.25%, 2015 | 2,507,573 | ||||
1,550 | M | Florida Power & Light Co., 5.85%, 2033 | 1,540,216 | ||||
750 | M | Great River Energy Co., 5.829%, 2017 (a) | 780,935 | ||||
1,325 | M | Jersey Central Power & Light Co., 5.625%, 2016 | 1,305,536 | ||||
NiSource Finance Corp.: | |||||||
900 | M | 7.875%, 2010 | 978,928 | ||||
600 | M | 5.4%, 2014 | 593,992 | ||||
570 | M | NY State Gas & Electric Co., 6.15%, 2017 (a) | 580,140 | ||||
1,400 | M | OGE Energy Corp., 5%, 2014 | 1,364,930 | ||||
775 | M | PSI Energy, Inc., 8.85%, 2022 | 996,671 | ||||
1,510 | M | Public Service Electric & Gas Co., 6.75%, 2016 | 1,667,103 | ||||
400 | M | South Carolina Electric & Gas Co., 6.7%, 2011 | 430,874 | ||||
570 | M | Southwestern Electric Power Co., 5.875%, 2018 | 558,252 | ||||
18,121,639 | |||||||
Waste Management—.8% | |||||||
500 | M | Allied Waste NA, Inc., 5.75%, 2011 | 491,250 | ||||
2,000 | M | Waste Management, Inc., 6.875%, 2009 | 2,052,306 | ||||
2,543,556 | |||||||
Total Value of Corporate Bonds (cost $212,261,040) | 213,560,162 | ||||||
17 |
Portfolio of Investments (continued) | |||||||
INVESTMENT GRADE FUND | |||||||
March 31, 2008 | |||||||
Principal | |||||||
Amount | |||||||
or Shares | Security | Value | |||||
AUCTION RATE SECURITIES (b) —10.1% | |||||||
$ 1,500 | M | Burke Cnty., GA Dev. Auth. Pollution Ctl., Rev., 8%, 2039 | $ | 1,500,000 | |||
1,500 | M | Charlotte-Mecklenburg, NC Hosp. Auth. Health Care Sys. | |||||
Rev., 6.14%, 2041 | 1,500,000 | ||||||
Citizens Property Ins. Corp. FL: | |||||||
4,000 | M | 8%, 2021 | 4,000,000 | ||||
1,000 | M | 6%, 2023 | 1,000,000 | ||||
1,500 | M | Coastal Bend, TX Health Facs. Dev. Corp., 7.14%, 2031 | 1,500,000 | ||||
975 | M | Colorado Health Facs. Auth. Rev., 5.64%, 2041 | 975,000 | ||||
1,000 | M | Colorado Springs, CO Hosp. Rev., 7%, 2032 | 1,000,000 | ||||
District of Columbia Hosp. Rev.: | |||||||
1,500 | M | 7.23%, 2035 | 1,500,000 | ||||
3,000 | M | 7.49%, 2035 | 3,000,000 | ||||
Illinois Finance Auth. Rev.: | |||||||
1,600 | M | 6%, 2025 | 1,600,000 | ||||
1,000 | M | 6.92%, 2029 | 1,000,000 | ||||
1,000 | M | Indiana Health & Edl. Facs. Fing. Auth. Rev., 7.15%, 2030 | 1,000,000 | ||||
1,500 | M | Lorain Cnty., OH Hosp. Rev. (Catholic Healthcare Partners), | |||||
8.2%, 2029 | 1,500,000 | ||||||
975 | M | Louisiana Public Facs. Auth. Rev., 5.9%, 2041 | 975,000 | ||||
1,000 | M | Lynchburg, VA Indl. Dev. Auth. Rev., 7.89%, 2035 | 1,000,000 | ||||
1,000 | M | Missouri State Health & Edl. Facs. Auth., 6.14%, 2035 | 1,000,000 | ||||
New Jersey Health Care Facs. Fing. Auth. Rev.: | |||||||
2,525 | M | 6%, 2037 | 2,525,000 | ||||
1,000 | M | 7%, 2038 | 1,000,000 | ||||
560 | M | New Mexico State Hosp. Equip. Loan Council Rev., 7%, 2031 | 560,000 | ||||
2,000 | M | North Carolina Municipal Pwr. Agy., 7.4%, 2014 | 2,000,000 | ||||
1,000 | M | Washington State Health Care Facs. Auth. Rev., 6.24%, 2034 | 1,000,000 | ||||
1,000 | M | West Virginia State Hosp. Fing. Auth. Rev., 7%, 2034 | 1,000,000 | ||||
Total Value of Auction Rate Securities (cost $32,135,000) | 32,135,000 | ||||||
PREFERRED STOCKS—9.7% | |||||||
Financial Services—6.4% | |||||||
6,300,000 | Bank of America Corp., 8%, 2049 | 6,318,207 | |||||
320,000 | Citigroup, Inc., 8.125%, 2049–Series “AA” | 7,692,800 | |||||
176,000 | Lehman Brothers Holdings, Inc., 7.95%, 2013–Series “J” | 3,622,080 | |||||
Wachovia Corp.: | |||||||
1,600,000 | 7.98%, 2049 | 1,576,853 | |||||
45,000 | 8%, 2049 | 1,111,500 | |||||
20,321,440 | |||||||
18 |
Shares or | |||||||
Principal | |||||||
Amount | Security | Value | |||||
U.S. Government Agency—3.3% | |||||||
324,000 | Fannie Mae, 8.25%, 2045 | $ | 7,792,200 | ||||
108,000 | Freddie Mac, 8.375%, 2047–Series “Z” | 2,623,000 | |||||
10,415,200 | |||||||
Total Value of Preferred Stocks (cost $32,451,550) | 30,736,640 | ||||||
MORTGAGE-BACKED CERTIFICATES—3.3% | |||||||
Fannie Mae—1.3% | |||||||
$ 2,039 | M | 5.5%, 1/1/2037 | 2,061,256 | ||||
2,136 | M | 6.5%, 7/1/2037 | 2,213,880 | ||||
4,275,136 | |||||||
Freddie Mac—2.0% | |||||||
3,253 | M | 5.5%, 6/1/2036 | 3,342,810 | ||||
2,841 | M | 6%, 11/1/2037 | 2,916,825 | ||||
6,259,635 | |||||||
Total Value of Mortgage-Backed Certificates (cost $10,231,795) | 10,534,771 | ||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS—3.0% | |||||||
Fannie Mae: | |||||||
2,000 | M | 5.65%, 2014 | 2,007,202 | ||||
2,600 | M | 6%, 2016 | 2,634,102 | ||||
1,000 | M | Federal Home Loan Bank, 7.23%, 2015 | 1,101,413 | ||||
3,500 | M | Freddie Mac, 6%, 2017 | 3,612,045 | ||||
Total Value of U.S. Government Agency Obligations (cost $9,162,350) | 9,354,762 | ||||||
PASS THROUGH CERTIFICATES—.9% | |||||||
Transportation | |||||||
495 | M | American Airlines, Inc., 7.377%, 2019 | 405,819 | ||||
1,207 | M | Continental Airlines, Inc., 8.388%, 2020 | 1,134,203 | ||||
1,257 | M | FedEx Corp., 7.5%, 2018 | 1,366,852 | ||||
Total Value of Pass Through Certificates (cost $4,062,789) | 2,906,874 | ||||||
19 |
Portfolio of Investments (continued) | |||||||
INVESTMENT GRADE FUND | |||||||
March 31, 2008 | |||||||
Principal | |||||||
Amount | Security | Value | |||||
MUNICIPAL BONDS—.5% | |||||||
$ 1,750 | M | Tobacco Settlement Fin. Auth. West Virginia Series “A”, | |||||
7.467%, 2047 (cost $1,750,000) | $ | 1,670,568 | |||||
U.S. GOVERNMENT OBLIGATIONS—.4% | |||||||
1,042 | M | FDA Queens LP, 6.99%, 2017 (cost $1,128,781) (a) | 1,211,840 | ||||
Total Value of Investments (cost $303,183,305) | 95.3 | % | 302,110,617 | ||||
Other Assets, Less Liabilities | 4.7 | 14,898,877 | |||||
Net Assets | 100.0 | % | $ | 317,009,494 | |||
(a) Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 4). | |||||||
(b) Interest rates on auction rate securities are determined and reset periodically by the issuer and | |||||||
are the rates in effect on March 31, 2008 | |||||||
20 | See notes to financial statements |
Fund Expenses | |||
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 4 for | |||
a detailed explanation of the information presented in these examples. | |||
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/07) | (3/31/08) | (10/1/07–3/31/08)* | |
Expense Example–Class A Shares | |||
Actual | $1,000.00 | $943.91 | $6.37 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,018.45 | $6.61 |
Expense Example–Class B Shares | |||
Actual | $1,000.00 | $940.43 | $9.75 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,014.95 | $10.13 |
*Expenses are equal to the annualized expense ratio of 1.31% for Class A shares and 2.01% for | |||
Class B shares, multiplied by the average account value over the period, multiplied by 183/366 (to | |||
reflect the one-half year period). |
Portfolio Composition
TOP TEN SECTORS
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/equityincomex23x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2008, and |
are based on the total value of investments. |
21 |
Portfolio of Investments | |||||||
FUND FOR INCOME | |||||||
March 31, 2008 | |||||||
Principal | |||||||
Amount | Security | Value | |||||
CORPORATE BONDS—89.8% | |||||||
Aerospace/Defense—4.3% | |||||||
$ 150 | M | Alion Science & Technology Corp., 10.25%, 2015 | $ | 85,500 | |||
4,775 | M | Alliant Techsystems, Inc., 6.75%, 2016 | 4,667,563 | ||||
DRS Technologies, Inc.: | |||||||
5,250 | M | 6.875%, 2013 | 5,171,250 | ||||
1,000 | M | 6.625%, 2016 | 982,500 | ||||
5,508 | M | DynCorp International, LLC, 9.5%, 2013 | 5,631,930 | ||||
1,747 | M | GenCorp, Inc., 9.5%, 2013 | 1,742,633 | ||||
4,375 | M | L-3 Communications Corp., 7.625%, 2012 | 4,500,775 | ||||
22,782,151 | |||||||
Automotive—4.5% | |||||||
2,700 | M | Accuride Corp., 8.5%, 2015 (a) | 2,214,000 | ||||
250 | M | American Axle & Manufacturing, Inc., 7.875%, 2017 | 213,125 | ||||
Asbury Automotive Group, Inc.: | |||||||
5,400 | M | 8%, 2014 | 4,725,000 | ||||
2,000 | M | 7.625%, 2017 | 1,590,000 | ||||
6,975 | M | Avis Budget Car Rental, LLC, 7.75%, 2016 | 5,719,500 | ||||
4,208 | M | Cambridge Industries Liquidating Trust, 2008 (b)(c) | 2,630 | ||||
500 | M | Tenneco Automotive, Inc., 8.625%, 2014 | 493,750 | ||||
6,575 | M | United Auto Group, Inc., 7.75%, 2016 | 5,720,250 | ||||
3,600 | M | United Components, Inc., 9.375%, 2013 | 3,316,500 | ||||
23,994,755 | |||||||
Chemicals—4.5% | |||||||
Huntsman, LLC: | |||||||
1,636 | M | 11.625%, 2010 | 1,734,160 | ||||
2,765 | M | 11.5%, 2012 | 2,958,550 | ||||
5,250 | M | Nell AF S.a.r.l., 8.375%, 2015 (a)(d) | 3,858,750 | ||||
4,800 | M | Newmarket Corp., 7.125%, 2016 | 4,704,000 | ||||
4,500 | M | Terra Capital, Inc., 7%, 2017 | 4,460,625 | ||||
3,900 | M | Tronox Worldwide, LLC, 9.5%, 2012 (a) | 3,354,000 | ||||
3,075 | M | Westlake Chemical Corp., 6.625%, 2016 | 2,706,000 | ||||
23,776,085 | |||||||
22 |
Principal | |||||||
Amount | Security | Value | |||||
Consumer Non-Durables—2.1% | |||||||
$4,000 | M | GFSI, Inc., 10.5%, 2011 (d)(e) | $ | 3,740,000 | |||
Levi Strauss & Co.: | |||||||
4,000 | M | 9.75%, 2015 | 4,005,000 | ||||
3,500 | M | 8.875%, 2016 (a) | 3,360,000 | ||||
11,105,000 | |||||||
Energy—11.7% | |||||||
5,275 | M | Basic Energy Services, Inc., 7.125%, 2016 | 5,050,813 | ||||
3,600 | M | Calfrac Holdings, 7.75%, 2015 (d) | 3,384,000 | ||||
Chesapeake Energy Corp.: | |||||||
1,800M | M | 7.5%, 2014 (a) | 1,854,000 | ||||
8,850 | M | 6.625%, 2016 | 8,717,250 | ||||
4,500 | M | Cimarex Energy Co., 7.125%, 2017 | 4,488,750 | ||||
4,350 | M | Compagnie Generale de Geophysique, 7.5%, 2015 | 4,437,000 | ||||
4,375 | M | Complete Production Services, Inc., 8%, 2016 | 4,221,875 | ||||
1,800 | M | Connacher Oil & Gas, Ltd., 10.25%, 2015 (d) | 1,822,500 | ||||
8,500 | M | Delta Petroleum Corp., 7%, 2015 | 7,607,500 | ||||
164 | M | Grant Prideco, Inc., 6.125%, 2013 | 168,253 | ||||
1,350 | M | Hilcorp Energy I, LP, 9%, 2016 (d) | 1,366,875 | ||||
Pacific Energy Partners LP: | |||||||
3,070 | M | 7.125%, 2014 | 3,252,063 | ||||
1,920 | M | 6.25%, 2015 | 1,911,122 | ||||
Petroplus Finance, Ltd.: | |||||||
900 | M | 6.75%, 2014 (d) | 825,750 | ||||
3,950 | M | 7%, 2017 (d) | 3,545,125 | ||||
3,600 | M | Stallion Oilfield Services, Ltd., 9.75%, 2015 (d) | 2,484,000 | ||||
2,600 | M | Stewart & Stevenson, LLC, 10%, 2014 | 2,509,000 | ||||
1,400 | M | Swift Energy Co., 7.125%, 2017 | 1,291,500 | ||||
3,490 | M | Tesoro Corp., 6.25%, 2012 | 3,306,775 | ||||
62,244,151 | |||||||
Financial Services—2.2% | |||||||
11,954 | M | Targeted Return Index Securities Trust, 7.548%, 2016 (d) | 11,414,122 | ||||
Financials—.6% | |||||||
4,350 | M | General Motors Acceptance Corp., 6.75%, 2014 | 3,082,258 | ||||
23 |
Portfolio of Investments (continued) | |||||||
FUND FOR INCOME | |||||||
March 31, 2008 | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Food/Beverage/Tobacco—3.1% | |||||||
$ 9,000 | M | Constellation Brands, Inc., 7.25%, 2016 | $ | 8,797,500 | |||
Land O’Lakes, Inc.: | |||||||
1,800 | M | 9%, 2010 | 1,876,500 | ||||
775 | M | 8.75%, 2011 | 796,313 | ||||
1,800 | M | Pierre Foods, Inc., 9.875%, 2012 | 999,000 | ||||
4,125 | M | Southern States Cooperative, Inc., 10.5%, 2010 (d) | 4,228,125 | ||||
16,697,438 | |||||||
Food/Drug—1.2% | |||||||
6,250 | M | Ingles Markets, Inc., 8.875%, 2011 | 6,343,750 | ||||
Forest Products/Containers—2.0% | |||||||
2,150 | M | Jefferson Smurfit Corp., 8.25%, 2012 | 1,948,438 | ||||
115 | M | New Page Corp., 10%, 2012 (d) | 117,300 | ||||
4,400 | M | Sappi Papier Holding, AG, 6.75%, 2012 (d) | 3,996,045 | ||||
2,000 | M | Tekni-Plex, Inc., 8.75%, 2013 (a) | 1,770,000 | ||||
3,275 | M | Verso Paper Holding, LLC, 6.989%, 2014 (e) | 2,783,750 | ||||
10,615,533 | |||||||
Gaming/Leisure—6.2% | |||||||
4,250 | M | Circus & Eldorado/Silver Legacy, 10.125%, 2012 | 4,303,125 | ||||
2,200 | M | Herbst Gaming, Inc., 8.125%, 2012 (a) | 412,500 | ||||
4,500 | M | Isle of Capri Casinos, Inc., 7%, 2014 (a) | 3,228,750 | ||||
5,220 | M | Mandalay Resort Group, 6.375%, 2011 | 4,985,100 | ||||
6,960 | M | MGM Mirage, Inc., 6.625%, 2015 | 6,090,000 | ||||
1,800 | M | Pinnacle Entertainment, Inc., 7.5%, 2015 (a)(d) | 1,426,500 | ||||
9,745 | M | Speedway Motorsports, Inc., 6.75%, 2013 | 9,550,100 | ||||
4,500 | M | Station Casinos, Inc., 6.875%, 2016 (a) | 2,643,750 | ||||
32,639,825 | |||||||
Health Care—6.2% | |||||||
Alliance Imaging, Inc.: | |||||||
3,150 | M | 7.25%, 2012 | 2,976,750 | ||||
1,800 | M | 7.25%, 2012 | 1,701,000 | ||||
4,375 | M | Community Health Systems, Inc., 8.875%, 2015 | 4,413,281 | ||||
4,350 | M | DaVita, Inc., 7.25%, 2015 | 4,263,000 | ||||
3,480 | M | Fisher Scientific International, Inc., 6.125%, 2015 | 3,470,862 | ||||
4,400 | M | Genesis Health Ventures, Inc., 9.75%, 2008 (b)(c) | 2,750 | ||||
24 |
Principal | |||||||
Amount | Security | Value | |||||
Health Care (continued) | |||||||
HCA, Inc.: | |||||||
$ 879 | M | 6.95%, 2012 (a) | $ | 830,655 | |||
3,930 | M | 6.75%, 2013 | 3,497,700 | ||||
4,000 | M | Omnicare, Inc., 6.875%, 2015 | 3,500,000 | ||||
3,025 | M | Res-Care, Inc., 7.75%, 2013 | 2,888,875 | ||||
Tenet Healthcare Corp.: | |||||||
3,450 | M | 6.375%, 2011 | 3,130,875 | ||||
2,250 | M | 9.25%, 2015 | 2,115,000 | ||||
32,790,748 | |||||||
Housing—3.1% | |||||||
2,180 | M | Beazer Homes USA, Inc., 6.875%, 2015 (a) | 1,569,600 | ||||
6,100 | M | Builders FirstSource, Inc., 7.315%, 2012 (e) | 4,300,500 | ||||
900 | M | NTK Holdings, Inc., 0%-10.75%, 2014 (a)(f) | 441,000 | ||||
6,760 | M | Ply Gem Industries, Inc., 9%, 2012 (a) | 4,968,600 | ||||
3,500 | M | Realogy Corp., 12.375%, 2015 (a) | 1,575,000 | ||||
William Lyon Homes, Inc.: | |||||||
4,500 | M | 7.625%, 2012 | 2,272,500 | ||||
2,700 | M | 10.75%, 2013 | 1,417,500 | ||||
16,544,700 | |||||||
Information Technology—3.9% | |||||||
7,650 | M | Belden CDT, Inc., 7%, 2017 | 7,420,500 | ||||
3,000 | M | Exodus Communications, Inc., 10.75%, 2009 (b)(c) | 1,875 | ||||
2,700 | M | First Data Corp., 9.875%, 2015 (a)(d) | 2,224,125 | ||||
Freescale Semiconductor, Inc.: | |||||||
5,250 | M | 9.125%, 2014 | 3,858,750 | ||||
875 | M | 10.125%, 2016 (a) | 595,000 | ||||
Iron Mountain, Inc.: | |||||||
1,000 | M | 8.625%, 2013 | 1,015,000 | ||||
1,000 | M | 6.625%, 2016 | 957,500 | ||||
1,000 | M | NXP BV/NXP Funding, LLC, 7.875%, 2014 | 920,000 | ||||
Sanmina–SCI Corp.: | |||||||
875 | M | 5.55%, 2014 (d)(e) | 791,875 | ||||
1,300 | M | 8.125%, 2016 (a) | 1,157,000 | ||||
Xerox Corp.: | |||||||
500 | M | 6.4%, 2016 | 518,068 | ||||
1,000 | M | 6.75%, 2017 | 1,057,378 | ||||
20,517,071 | |||||||
25 |
Portfolio of Investments (continued) | |||||||
FUND FOR INCOME | |||||||
March 31, 2008 | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Investment/Finance Companies—1.4% | |||||||
$ 7,300 | M | LaBranche & Co., Inc., 11%, 2012 | $ | 7,446,000 | |||
Manufacturing—2.2% | |||||||
2,740 | M | Case New Holland, Inc., 7.125%, 2014 | 2,698,900 | ||||
ESCO Corp.: | |||||||
250 | M | 6.675%, 2013 (d)(e) | 216,250 | ||||
2,000 | M | 8.625%, 2013 (d) | 1,950,000 | ||||
2,500 | M | Itron, Inc., 7.75%, 2012 | 2,425,000 | ||||
4,500 | M | Terex Corp., 8%, 2017 | 4,500,000 | ||||
11,790,150 | |||||||
Media-Broadcasting—3.7% | |||||||
5,250 | M | Block Communications, Inc., 8.25%, 2015 (d) | 4,961,250 | ||||
1 | M | Canwest Media, Inc., 8%, 2012 | 573 | ||||
4,400 | M | LBI Media, Inc., 8.5%, 2017 (d) | 3,833,500 | ||||
5,000 | M | Nexstar Finance Holding, LLC, 0%-11.375%, 2013 (f) | 4,881,250 | ||||
1,357 | M | Sinclair Broadcasting Group, Inc., 8%, 2012 | 1,373,963 | ||||
Young Broadcasting, Inc.: | |||||||
2,920 | M | 10%, 2011 (a) | 1,846,900 | ||||
4,900 | M | 8.75%, 2014 (a) | 2,915,500 | ||||
19,812,936 | |||||||
Media-Cable TV—9.0% | |||||||
8,745 | M | Adelphia Communications Escrow Bond, 2011 (b) | 699,600 | ||||
6,250 | M | Atlantic Broadband Finance, LLC, 9.375%, 2014 | 5,531,250 | ||||
6,900 | M | Cablevision Systems Corp., 8%, 2012 | 6,744,750 | ||||
Charter Communications Holdings, LLC: | |||||||
8,500 | M | 10%, 2009 | 7,703,125 | ||||
2,000 | M | 10.25%, 2010 | 1,712,500 | ||||
8,250 | M | 11.75%, 2011 | 5,001,563 | ||||
2,000 | M | 8%, 2012 (d) | 1,845,000 | ||||
4,625 | M | CSC Holdings, Inc., 8.125%, 2009 | 4,682,813 | ||||
6,940 | M | Echostar DBS Corp., 6.375%, 2011 | 6,679,750 | ||||
Mediacom LLC/Mediacom Capital Corp.: | |||||||
4,000 | M | 7.875%, 2011 | 3,580,000 | ||||
2,000 | M | 9.5%, 2013 | 1,850,000 | ||||
Quebecor Media, Inc.: | |||||||
800 | M | 7.75%, 2016 | 734,000 | ||||
1,000 | M | 7.75%, 2016 | 917,500 | ||||
47,681,851 | |||||||
26 |
Principal | |||||||
Amount | Security | Value | |||||
Media-Diversified—4.6% | |||||||
$ 5,200 | M | Cenveo, Inc., 7.875%, 2013 | $ | 4,238,000 | |||
2,000 | M | Deluxe Corp., 7.375%, 2015 | 1,875,000 | ||||
7,875 | M | Idearc, Inc., 8%, 2016 | 5,138,438 | ||||
MediaNews Group, Inc.: | |||||||
2,625 | M | 6.875%, 2013 | 1,292,813 | ||||
3,100 | M | 6.375%, 2014 | 1,457,000 | ||||
6,450 | M | R.H. Donnelley Corp., 8.875%, 2017 (a)(d) | 4,063,500 | ||||
Six Flags, Inc.: | |||||||
2,500 | M | 8.875%, 2010 (a) | 1,712,500 | ||||
1,800 | M | 9.625%, 2014 | 1,026,000 | ||||
3,400 | M | Universal City Development Partners, Ltd., 11.75%, 2010 | 3,502,000 | ||||
250 | M | Universal City Florida Holding Co., 7.98938%, 2010 (e) | 243,750 | ||||
24,549,001 | |||||||
Metals/Mining—1.5% | |||||||
500 | M | Freeport-McMoRan Copper & Gold, Inc., 8.375%, 2017 | 531,875 | ||||
1,750 | M | Metals USA, Inc., 11.125%, 2015 | 1,723,750 | ||||
6,010 | M | Russell Metals, Inc., 6.375%, 2014 | 5,589,300 | ||||
7,844,925 | |||||||
Retail-General Merchandise—2.7% | |||||||
4,400 | M | Claire’s Stores, Inc., 9.625%, 2015, PIK (a) | 2,288,000 | ||||
1,950 | M | GSC Holdings Corp., 8%, 2012 | 2,071,875 | ||||
6,100 | M | Neiman Marcus Group, Inc., 10.375%, 2015 (a) | 6,130,500 | ||||
4,750 | M | Yankee Acquisition Corp., 9.75%, 2017 (a) | 3,800,000 | ||||
14,290,375 | |||||||
Services—4.3% | |||||||
Allied Waste NA, Inc.: | |||||||
1,800 | M | 7.875%, 2013 | 1,860,750 | ||||
6,000 | M | 7.375%, 2014 (a) | 5,932,500 | ||||
5,250 | M | 6.875%, 2017 | 5,171,250 | ||||
4,700 | M | Ashtead Capital, Inc., 9%, 2016 (a)(d) | 3,830,500 | ||||
United Rentals, Inc.: | |||||||
2,863 | M | 6.5%, 2012 | 2,605,330 | ||||
4,350 | M | 7%, 2014 | 3,436,500 | ||||
22,836,830 | |||||||
27 |
Portfolio of Investments (continued) | |||||||
FUND FOR INCOME | |||||||
March 31, 2008 | |||||||
Principal | |||||||
Amount | |||||||
or Shares | Security | Value | |||||
Transportation—1.2% | |||||||
$ 1,750 | M | Overseas Shipholding Group, Inc., 8.25%, 2013 | $ | 1,765,313 | |||
4,200 | M | Roadway Corp., 8.25%, 2008 | 4,116,000 | ||||
500 | M | Titan Petrochemicals Group, Ltd., 8.5%, 2012 (d) | 362,500 | ||||
6,243,813 | |||||||
Utilities—1.5% | |||||||
102 | M | AES Corp., 8.75%, 2013 (d) | 106,590 | ||||
4,400 | M | Dynegy Holdings, Inc., 7.75%, 2019 | 4,136,000 | ||||
164 | M | Energy Future Holdings (TXU Corp.), 5.55%, 2014 | 128,681 | ||||
NRG Energy, Inc.: | |||||||
163 | M | 7.375%, 2016 | 160,148 | ||||
3,500 | M | 7.375%, 2017 | 3,412,500 | ||||
250 | M | Reliant Energy, Inc., 6.75%, 2014 | 255,625 | ||||
8,199,544 | |||||||
Wireless Communications—2.1% | |||||||
8,000 | M | Nextel Communications, Inc., 5.95%, 2014 | 5,926,880 | ||||
5,200 | M | Rogers Wireless, Inc., 6.375%, 2014 | 5,161,858 | ||||
11,088,738 | |||||||
Total Value of Corporate Bonds (cost $542,541,421) | 476,331,750 | ||||||
COMMON STOCKS—3.2% | |||||||
Automotive—.0% | |||||||
37,387 | * | Safelite Glass Corporation–Class “B” (c)(d) | 23,180 | ||||
2,523 | * | Safelite Realty Corporation (c) | 30,528 | ||||
53,708 | |||||||
Chemicals—1.0% | |||||||
14,634 | * | Texas Petrochemicals Corporation (c) | 346,416 | ||||
180,613 | * | Texas Petrochemicals Corporation (c) | 4,858,490 | ||||
5,204,906 | |||||||
Food/Drug—.1% | |||||||
27,925 | Ingles Markets, Inc. | 686,676 | |||||
28 |
Shares or | |||||||
Principal | |||||||
Amount | |||||||
or Warrants | Security | Value | |||||
Media-Broadcasting—1.1% | |||||||
105,000 | Clear Channel Communications, Inc. | $ | 3,068,100 | ||||
325,000 | Sinclair Broadcasting Group, Inc. | 2,895,750 | |||||
5,963,850 | |||||||
Media-Cable TV—1.0% | |||||||
8,731,521 | * | Adelphia Recovery Trust | 571,915 | ||||
178,083 | * | Time Warner Cable, Inc.–Class "A" | 4,448,513 | ||||
5,020,428 | |||||||
Telecommunications—.0% | |||||||
2,533 | * | Viatel Holding (Bermuda), Ltd. (c) | 30 | ||||
18,224 | * | World Access, Inc. | 11 | ||||
41 | |||||||
Total Value of Common Stocks (cost $20,878,018) | 16,929,609 | ||||||
AUCTION RATE SECURITIES (g) —.9% | |||||||
$ 2,500 | M | Citizens Property Ins. Corp., FL, 10.74%, 2026 | 2,500,000 | ||||
2,500 | M | Lorain County, OH Hosp. Rev. (Catholic Healthcare Partners), | |||||
8.2%, 2029 | 2,500,000 | ||||||
Total Value of Auction Rate Securities (cost $5,000,000) | 5,000,000 | ||||||
WARRANTS—.0% | |||||||
Aerospace/Defense—.0% | |||||||
3,000 | * | DeCrane Aircraft Holdings, Inc. (expiring 9/30/08) (c)(d) | 30 | ||||
Telecommunication Services—.0% | |||||||
3,500 | * | GT Group Telecom, Inc. (expiring 2/1/10) (c)(d) | — | ||||
Total Value of Warrants (cost $319,221) | 30 | ||||||
REPURCHASE AGREEMENTS—7.0% | |||||||
$16,903 | M | Barclays Bank PLC, 2.3%, dated 3/31/08, to be repurchased | |||||
at $16,904,080 on 4/1/08 (collateralized by Federal Home | |||||||
Loan Bank, 4.33%, 7/10/09, valued at $17,243,771) (h) | 16,903,000 | ||||||
20,000 | M | Deutsche Bank, 2.25%, dated 3/31/08, to be repurchased | |||||
at $20,001,250 on 4/1/08 (collateralized by Federal | |||||||
Home Loan Bank, 2.58%, 9/17/08, valued at $20,417,575) (h) | 20,000,000 | ||||||
Total Value of Repurchase Agreements (cost $36,903,000) | 36,903,000 | ||||||
29 |
Portfolio of Investments (continued) | |||||||
FUND FOR INCOME | |||||||
March 31, 2008 | |||||||
Principal | |||||||
Amount | Security | Value | |||||
SHORT-TERM CORPORATE NOTES—3.8% | |||||||
$ 1,750 | M | Australia & New Zealand Banking Corp., 3.02%, 5/19/08 (h) | $ | 1,743,296 | |||
5,000 | M | General Electric Capital Corp., 2.33%, 4/24/08 | 4,992,554 | ||||
1,750 | M | Macquarie Bank, Ltd., 3.05%, 5/23/08 (h) | 1,742,666 | ||||
10,000 | M | PepsiCo, Inc., 2.15%, 4/23/08 (i) | 9,986,857 | ||||
1,750 | M | WestPac Banking Corp., 3.03%, 5/12/08 (h) | 1,744,211 | ||||
Total Value of Short-Term Corporate Notes (cost $20,209,584) | 20,209,584 | ||||||
CERTIFICATES OF DEPOSIT—2.0% | |||||||
1,750 | M | Banco Bilbao Vizcaya, 3.06%, 5/29/08 (h) | 1,750,535 | ||||
1,750 | M | Banco Santander SA, 2.99%, 6/3/08 (h) | 1,749,901 | ||||
1,750 | M | Bank of America NA, 3%, 6/6/08 (h) | 1,753,646 | ||||
1,750 | M | HSBC Bank USA, 2.99%, 6/4/08 (h) | 1,749,869 | ||||
1,750 | M | Royal Bank of Canada, 3.08%, 5/2/08 (h) | 1,752,637 | ||||
1,750 | M | Royal Bank of Scotland Group PLC, 3.04%, 5/28/08 (h) | 1,750,441 | ||||
Total Value of Certificates of Deposit (cost $10,507,029) | 10,507,029 | ||||||
SHORT-TERM U.S. GOVERNMENT AGENCY | |||||||
OBLIGATIONS—.6% | |||||||
3,000 | M | Federal Home Loan Bank, 1.75%, 4/8/08 (cost $2,998,979) | 2,998,979 | ||||
Total Value of Investments (cost $639,357,252) | 107.3 | % | 568,879,981 | ||||
Excess of Liabilities Over Other Assets | (7.3) | (38,653,724) | |||||
Net Assets | 100.0 | % | $ | 530,226,257 | |||
* Non-income producing | |||||||
(a) Loaned security; a portion or all of the security is on loan as of March 31, 2008. | |||||||
(b) In default as to principal and/or interest payment | |||||||
(c) Securities valued at fair value (see Note 1A) | |||||||
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 4). | |||||||
(e) Interest rates on adjustable rate bonds are determined and reset quarterly by the indentures. The | |||||||
interest rates shown are the rates in effect on March 31, 2008. | |||||||
(f) Denotes a stepbond (a zero coupon bond that converts to a fixed interest rate at a | |||||||
designated date). | |||||||
(g) Interest rates on auction rate securities are determined and reset periodically by the issuer and | |||||||
are the rates in effect on March 31, 2008. | |||||||
(h) Issued as collateral for securities on loan | |||||||
(i) Security exempt from registration under Section 4(2) of the Securities Act of 1933 (see Note 4). | |||||||
30 | See notes to financial statements |
Fund Expenses | |||
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 4 for | |||
a detailed explanation of the information presented in these examples. | |||
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/07) | (3/31/08) | (10/1/07-3/31/08)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $935.53 | $6.49 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,018.30 | $6.76 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $931.87 | $9.85 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,014.80 | $10.28 |
* Expenses are equal to the annualized expense ratio of 1.34% for Class A shares and 2.04% for | |||
Class B shares, multiplied by the average account value over the period, multiplied by 183/366 | |||
(to reflect the one-half year period). | |||
Portfolio Composition | |||
TOP TEN SECTORS |
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/equityincomex33x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2008, and |
are based on the total market value of investments. |
31 |
Portfolio of Investments | |||||||
TOTAL RETURN FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
COMMON STOCKS—55.4% | |||||||
Consumer Discretionary—7.7% | |||||||
41,200 | bebe stores, inc. | $ | 442,900 | ||||
29,800 | BorgWarner, Inc. | 1,282,294 | |||||
69,000 | Brown Shoe Company, Inc. | 1,039,830 | |||||
32,100 | * | Carter’s, Inc. | 518,415 | ||||
53,100 | CBS Corporation – Class "B" | 1,172,448 | |||||
50,600 | * | CEC Entertainment, Inc. | 1,461,328 | ||||
40,000 | Cinemark Holdings, Inc. | 511,600 | |||||
49,600 | Clear Channel Communications, Inc. | 1,449,312 | |||||
35,500 | * | Coach, Inc. | 1,070,325 | ||||
26,800 | * | Eddie Bauer Holdings, Inc. | 104,252 | ||||
19,100 | Genuine Parts Company | 768,202 | |||||
23,600 | H&R Block, Inc. | 489,936 | |||||
64,200 | Home Depot, Inc. | 1,795,674 | |||||
14,900 | J.C. Penney Company, Inc. | 561,879 | |||||
36,100 | Leggett & Platt, Inc. | 550,525 | |||||
55,500 | * | Lincoln Educational Services Corporation | 666,000 | ||||
47,500 | McDonald’s Corporation | 2,649,075 | |||||
102,700 | * | Morgans Hotel Group Company | 1,522,014 | ||||
60,000 | Movado Group, Inc. | 1,169,400 | |||||
67,600 | Newell Rubbermaid, Inc. | 1,546,012 | |||||
13,200 | Polo Ralph Lauren Corporation – Class "A" | 769,428 | |||||
67,500 | Ruby Tuesday, Inc. | 506,250 | |||||
18,300 | Sherwin-Williams Company | 934,032 | |||||
55,100 | Staples, Inc. | 1,218,261 | |||||
26,800 | * | Steiner Leisure, Ltd. | 884,400 | ||||
30,750 | * | Viacom, Inc. – Class "B" | 1,218,315 | ||||
56,000 | Westwood One, Inc. | 117,600 | |||||
66,160 | Wyndham Worldwide Corporation | 1,368,189 | |||||
27,787,896 | |||||||
Consumer Staples—6.2% | |||||||
47,400 | Altria Group, Inc. | 1,052,280 | |||||
35,200 | Avon Products, Inc. | 1,391,808 | |||||
16,200 | * | Chattem, Inc. | 1,074,708 | ||||
18,100 | Coca-Cola Company | 1,101,747 | |||||
62,800 | CVS Caremark Corporation | 2,544,028 | |||||
29,349 | Kraft Foods, Inc. – Class "A" | 910,112 | |||||
32 |
Shares | Security | Value | |||||
Consumer Staples (continued) | |||||||
132,200 | Nu Skin Enterprises, Inc. – Class "A" | $ | 2,382,244 | ||||
13,500 | PepsiCo, Inc. | 974,700 | |||||
47,400 | * | Philip Morris International, Inc. | 2,397,492 | ||||
21,000 | Procter & Gamble Company | 1,471,470 | |||||
50,000 | Safeway, Inc. | 1,467,500 | |||||
23,818 | Tootsie Roll Industries, Inc. | 600,207 | |||||
68,700 | Walgreen Company | 2,616,783 | |||||
40,800 | Wal-Mart Stores, Inc. | 2,149,344 | |||||
22,134,423 | |||||||
Energy—5.7% | |||||||
16,000 | Anadarko Petroleum Corporation | 1,008,480 | |||||
67,500 | * | Cal Dive International, Inc. | 700,650 | ||||
12,950 | Chesapeake Energy Corporation | 597,643 | |||||
23,800 | ConocoPhillips | 1,813,798 | |||||
30,800 | ExxonMobil Corporation | 2,605,064 | |||||
1,897 | Hugoton Royalty Trust | 52,319 | |||||
8,386 | Marathon Oil Corporation | 382,401 | |||||
42,600 | Noble Corporation | 2,115,942 | |||||
36,500 | Sasol, Ltd. (ADR) | 1,766,235 | |||||
40,500 | Suncor Energy, Inc. | 3,902,175 | |||||
7,200 | * | Swift Energy Company | 323,928 | ||||
16,670 | * | Transocean, Inc. | 2,253,784 | ||||
20,600 | World Fuel Services Corporation | 578,242 | |||||
39,532 | XTO Energy, Inc. | 2,445,449 | |||||
20,546,110 | |||||||
Financials—6.2% | |||||||
13,700 | American Express Company | 598,964 | |||||
29,100 | American International Group, Inc. | 1,258,575 | |||||
2,580 | Ameriprise Financial, Inc. | 133,773 | |||||
29,100 | Astoria Financial Corporation | 790,356 | |||||
39,200 | Bank of America Corporation | 1,486,072 | |||||
48,600 | Brookline Bancorp, Inc. | 557,928 | |||||
17,092 | Capital One Financial Corporation | 841,268 | |||||
29,800 | Citigroup, Inc. | 638,316 | |||||
53,700 | Colonial BancGroup, Inc. | 517,131 | |||||
26,550 | Discover Financial Services | 434,624 | |||||
48,750 | * | First Mercury Financial Corporation | 848,738 | ||||
13,750 | * | Guaranty Financial Group, Inc. | 146,025 | ||||
13,324 | Hartford Financial Services Group, Inc. | 1,009,559 | |||||
33 |
Portfolio of Investments (continued) | |||||||
TOTAL RETURN FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
Financials (continued) | |||||||
48,200 | JPMorgan Chase & Company | $ | 2,070,190 | ||||
24,499 | KeyCorp | 537,753 | |||||
6,500 | Lehman Brothers Holdings, Inc. | 244,660 | |||||
10,100 | Merrill Lynch & Company, Inc. | 411,474 | |||||
19,100 | Morgan Stanley | 872,870 | |||||
53,900 | New York Community Bancorp, Inc. | 982,058 | |||||
73,200 | NewAlliance Bancshares, Inc. | 897,432 | |||||
12,200 | Plum Creek Timber Company, Inc. (REIT) | 496,540 | |||||
34,800 | South Financial Group, Inc. | 517,128 | |||||
59,975 | Sovereign Bancorp, Inc. | 558,967 | |||||
71,400 | Sunstone Hotel Investors, Inc. (REIT) | 1,143,114 | |||||
14,100 | SunTrust Banks, Inc. | 777,474 | |||||
53,400 | U.S. Bancorp | 1,728,024 | |||||
10,200 | Wachovia Corporation | 275,400 | |||||
16,700 | Webster Financial Corporation | 465,429 | |||||
36,800 | Wells Fargo & Company | 1,070,880 | |||||
22,310,722 | |||||||
Health Care—5.8% | |||||||
38,000 | Abbott Laboratories | 2,095,700 | |||||
27,400 | Aetna, Inc. | 1,153,266 | |||||
12,600 | * | Amgen, Inc. | 526,428 | ||||
5,900 | Baxter International, Inc. | 341,138 | |||||
12,975 | Covidien, Ltd. | 574,144 | |||||
5,300 | * | Genentech, Inc. | 430,254 | ||||
47,200 | Johnson & Johnson | 3,061,864 | |||||
13,400 | * | Laboratory Corporation of America Holdings | 987,312 | ||||
20,200 | Medtronic, Inc. | 977,074 | |||||
26,700 | Merck & Company, Inc. | 1,013,265 | |||||
114,680 | Pfizer, Inc. | 2,400,252 | |||||
33,700 | Sanofi-Aventis (ADR) | 1,265,098 | |||||
33,200 | * | St. Jude Medical, Inc. | 1,433,908 | ||||
26,900 | * | Thermo Fisher Scientific, Inc. | 1,528,996 | ||||
24,200 | * | TriZetto Group, Inc. | 403,898 | ||||
16,250 | UnitedHealth Group, Inc. | 558,350 | |||||
47,300 | Wyeth | 1,975,248 | |||||
20,726,195 | |||||||
34 |
Shares | Security | Value | |||||
Industrials—10.9% | |||||||
41,700 | 3M Company | $ | 3,300,555 | ||||
57,000 | * | AAR Corporation | 1,554,390 | ||||
22,700 | Alexander & Baldwin, Inc. | 977,916 | |||||
92,504 | * | Altra Holdings, Inc. | 1,244,179 | ||||
41,200 | Armstrong World Industries, Inc. | 1,469,192 | |||||
42,400 | Avery Dennison Corporation | 2,088,200 | |||||
55,000 | Barnes Group, Inc. | 1,262,250 | |||||
25,450 | * | BE Aerospace, Inc. | 889,478 | ||||
21,600 | Burlington Northern Santa Fe Corporation | 1,991,952 | |||||
21,800 | Dover Corporation | 910,804 | |||||
4,700 | * | Gardner Denver, Inc. | 174,370 | ||||
73,400 | General Electric Company | 2,716,534 | |||||
34,100 | Harsco Corporation | 1,888,458 | |||||
48,000 | Honeywell International, Inc. | 2,708,160 | |||||
34,100 | IDEX Corporation | 1,046,529 | |||||
37,300 | Illinois Tool Works, Inc. | 1,798,979 | |||||
14,300 | Lockheed Martin Corporation | 1,419,990 | |||||
85,100 | * | Mobile Mini, Inc. | 1,616,900 | ||||
24,600 | Northrop Grumman Corporation | 1,914,126 | |||||
30,200 | * | PGT, Inc. | 82,748 | ||||
27,000 | * | Pinnacle Airlines Corporation | 235,710 | ||||
14,400 | Precision Castparts Corporation | 1,469,952 | |||||
81,200 | TAL International Group, Inc. | 1,913,884 | |||||
39,700 | Textainer Group Holdings, Ltd. | 598,676 | |||||
27,175 | Tyco International, Ltd. | 1,197,059 | |||||
40,800 | United Technologies Corporation | 2,807,856 | |||||
39,278,847 | |||||||
Information Technology—8.4% | |||||||
7,900 | * | CACI International, Inc. – Class "A" | 359,845 | ||||
106,200 | * | Cisco Systems, Inc. | 2,558,358 | ||||
41,500 | * | Electronics for Imaging, Inc. | 619,180 | ||||
99,400 | * | EMC Corporation | 1,425,396 | ||||
79,400 | * | Entrust, Inc. | 198,500 | ||||
51,000 | Harris Corporation | 2,475,030 | |||||
40,200 | Hewlett-Packard Company | 1,835,532 | |||||
49,600 | Intel Corporation | 1,050,528 | |||||
31,000 | International Business Machines Corporation | 3,569,340 | |||||
27,000 | * | Macrovision Corporation | 364,500 | ||||
107,900 | Microsoft Corporation | 3,062,202 | |||||
72,400 | Motorola, Inc. | 673,320 | |||||
35 |
Portfolio of Investments (continued) | |||||||
TOTAL RETURN FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
Information Technology (continued) | |||||||
48,300 | * | NCI, Inc. – Class "A" | $ | 909,006 | |||
52,200 | Nokia Corporation – Class "A" (ADR) | 1,661,526 | |||||
54,600 | * | Parametric Technology Corporation | 872,508 | ||||
50,600 | QUALCOMM, Inc. | 2,074,600 | |||||
34,000 | * | SI International, Inc. | 652,460 | ||||
79,500 | * | Symantec Corporation | 1,321,290 | ||||
129,700 | * | TIBCO Software, Inc. | 926,058 | ||||
13,175 | Tyco Electronics, Ltd. | 452,166 | |||||
23,000 | * | ValueClick, Inc. | 396,750 | ||||
31,676 | Western Union Company | 673,748 | |||||
26,700 | * | Wright Express Corporation | 820,491 | ||||
53,700 | Xilinx, Inc. | 1,275,375 | |||||
30,227,709 | |||||||
Materials—3.3% | |||||||
8,200 | Ashland, Inc. | 387,860 | |||||
52,600 | Celanese Corporation – Series "A" | 2,054,030 | |||||
23,100 | Dow Chemical Company | 851,235 | |||||
20,900 | Freeport-McMoRan Copper & Gold, Inc. | 2,010,998 | |||||
38,200 | Lubrizol Corporation | 2,120,482 | |||||
18,800 | PPG Industries, Inc. | 1,137,588 | |||||
17,000 | Praxair, Inc. | 1,431,910 | |||||
57,700 | RPM International, Inc. | 1,208,238 | |||||
41,550 | Temple-Inland, Inc. | 528,516 | |||||
11,730,857 | |||||||
Telecommunication Services—.8% | |||||||
53,100 | AT&T, Inc. | 2,033,730 | |||||
20,500 | Verizon Communications, Inc. | 747,225 | |||||
2,780,955 | |||||||
Utilities—.4% | |||||||
30,700 | Atmos Energy Corporation | 782,850 | |||||
13,700 | Consolidated Edison, Inc. | 543,890 | |||||
1,326,740 | |||||||
Total Value of Common Stocks (cost $167,476,450) | 198,850,454 | ||||||
36 |
Principal | |||||||
Amount | Security | Value | |||||
CORPORATE BONDS—14.2% | |||||||
Aerospace/Defense—.3% | |||||||
$ 500 | M | Boeing Co., 7.25%, 2025 | $ | 587,532 | |||
500 | M | Precision Castparts Corp., 5.6%, 2013 | 555,942 | ||||
1,143,474 | |||||||
Automotive—.1% | |||||||
500 | M | Daimler Chrysler NA Holdings Corp., 5.75%, 2009 | 504,801 | ||||
Chemicals—.2% | |||||||
900 | M | Praxair, Inc., 5.375%, 2016 | 915,565 | ||||
Consumer Non Durables—.2% | |||||||
700 | M | Newell Rubbermaid, Inc., 6.75%, 2012 | 733,818 | ||||
Energy—1.4% | |||||||
1,000 | M | Canadian Natural Resources, Ltd., 5.9%, 2018 | 1,025,007 | ||||
500 | M | ConocoPhillips, 5.625%, 2016 | 524,846 | ||||
750 | M | Husky Oil, 8.9%, 2028 | 761,080 | ||||
500 | M | Kinder Morgan Finance Co., 5.35%, 2011 | 498,750 | ||||
1,000 | M | Northern Border Pipeline Co., 7.1%, 2011 | 1,066,977 | ||||
1,000 | M | Pacific Energy Partners LP, 7.125%, 2014 | 1,059,304 | ||||
4,935,964 | |||||||
Financial Services—2.0% | |||||||
1,000 | M | Endurance Specialty Holdings, Ltd., 7%, 2034 | 959,605 | ||||
1,000 | M | Fifth Third Bancorp, 5.45%, 2017 | 918,636 | ||||
310 | M | GATX Financial Corp., 5.5%, 2012 | 325,873 | ||||
500 | M | Hibernia Corp., 5.35%, 2014 | 446,401 | ||||
760 | M | Independence Community Bank Corp., 4.9%, 2010 | 758,224 | ||||
500 | M | JPMorgan Chase & Co., 5.25%, 2015 | 497,604 | ||||
1,000 | M | Nationsbank Corp., 7.8%, 2016 | 1,143,491 | ||||
1,000 | M | Prudential Financial, Inc., 6%, 2017 | 1,009,743 | ||||
1,000 | M | Wachovia Corp., 5.75%, 2018 | 981,297 | ||||
335 | M | Washington Mutual Bank, 5.95%, 2013 | 286,729 | ||||
7,327,603 | |||||||
37 |
Portfolio of Investments (continued) | |||||||
TOTAL RETURN FUND | |||||||
March 31, 2008 | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Financials—1.8% | |||||||
$ 1,000 | M | American General Finance Corp., 6.9%, 2017 | $ | 978,973 | |||
1,000 | M | Bear Stearns Cos., Inc., 7.25%, 2018 | 1,035,203 | ||||
927 | M | Ford Motor Credit Co., 9.75%, 2010 | 826,173 | ||||
1,000 | M | General Motors Acceptance Corp., 7.75%, 2010 | 865,307 | ||||
1,000 | M | Goldman Sachs Group, Inc., 6.45%, 2036 | 903,968 | ||||
1,000 | M | Merrill Lynch & Co., 5.45%, 2013 | 984,891 | ||||
1,000 | M | Morgan Stanley, 5.95%, 2017 | 968,212 | ||||
6,562,727 | |||||||
Food/Beverage/Tobacco—1.1% | |||||||
500 | M | Anheuser-Busch Cos., Inc., 4.375%, 2013 | 508,172 | ||||
200 | M | Bottling Group, LLC, 5%, 2013 | 209,092 | ||||
1,170 | M | Bunge Limited Finance Corp., 5.875%, 2013 | 1,220,943 | ||||
900 | M | Cargill, Inc., 6%, 2017 (a) | 909,436 | ||||
1,000 | M | Coca-Cola Enterprises, Inc., 7.125%, 2017 | 1,160,425 | ||||
4,008,068 | |||||||
Food/Drug—.2% | |||||||
700 | M | Kroger Co., 6.75%, 2012 | 750,161 | ||||
Gaming/Leisure—.4% | |||||||
700 | M | International Speedway Corp., 4.2%, 2009 | 704,086 | ||||
750 | M | MGM Mirage, Inc., 8.5%, 2010 | 778,125 | ||||
1,482,211 | |||||||
Health Care—.2% | |||||||
500 | M | Abbott Laboratories, 5.875%, 2016 | 533,846 | ||||
336 | M | Baxter International, Inc., 5.9%, 2016 | 355,241 | ||||
889,087 | |||||||
Information Technology—.3% | |||||||
1,000 | M | International Business Machines Corp., 7%, 2025 | 1,105,900 | ||||
Manufacturing—.3% | |||||||
1,000 | M | Crane Co., 6.55%, 2036 | 932,377 | ||||
Manufacturing-Diversified—.5% | |||||||
1,200 | M | General Electric Co., 5.25%, 2017 | 1,200,596 | ||||
500 | M | Siemens Financieringsmaatschappij NV, 5.75%, 2016 (a) | 512,692 | ||||
1,713,288 | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Media-Broadcasting—.4% | |||||||
$ 750 | M | Comcast Cable Communications, Inc., 7.125%, 2013 | $ | 797,668 | |||
800 | M | Cox Communications, Inc., 5.5%, 2015 | 782,914 | ||||
1,580,582 | |||||||
Media-Diversified—1.1% | |||||||
AOL Time Warner, Inc.: | |||||||
750 | M | 6.75%, 2011 | 771,780 | ||||
1,000 | M | 6.875%, 2012 | 1,033,249 | ||||
1,000 | M | McGraw-Hill Cos., Inc., 5.9%, 2017 | 993,865 | ||||
500 | M | News America, Inc., 5.3%, 2014 | 500,755 | ||||
705 | M | Viacom, Inc., 8.625%, 2012 | 762,139 | ||||
4,061,788 | |||||||
Metals/Mining—.4% | |||||||
1,000 | M | Alcoa, Inc., 6%, 2012 | 1,039,104 | ||||
500 | M | Vale Overseas, Ltd., 6.875%, 2036 | 490,358 | ||||
1,529,462 | |||||||
Real Estate Investment Trusts—.4% | |||||||
625 | M | Health Care Property Investors, Inc., 6%, 2017 | 511,101 | ||||
700 | M | Mack-Cali Realty LP, 7.75%, 2011 | 734,077 | ||||
1,245,178 | |||||||
Retail—.2% | |||||||
500 | M | McDonald’s Corp., 5.8%, 2017 | 525,962 | ||||
Telecommunications—1.2% | |||||||
800 | M | GTE Corp., 6.84%, 2018 | 859,133 | ||||
600 | M | SBC Communications, Inc., 6.25%, 2011 | 628,637 | ||||
1,000 | M | Verizon Communications, Inc., 5.5%, 2018 | 975,792 | ||||
600 | M | Verizon New York, Inc., 6.875%, 2012 | 631,571 | ||||
1,000 | M | Vodafone AirTouch PLC, 7.75%, 2010 | 1,060,231 | ||||
4,155,364 | |||||||
Transportation—.1% | |||||||
500 | M | Burlington Northern Santa Fe Corp., 4.3%, 2013 | 491,334 | ||||
39 |
Portfolio of Investments (continued) | |||||||
TOTAL RETURN FUND | |||||||
March 31, 2008 | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Utilities—1.1% | |||||||
$ 1,000 | M | Carolina Power & Light, Inc., 5.15%, 2015 | $ | 1,019,692 | |||
350 | M | Entergy Gulf States, Inc., 5.25%, 2015 | 331,189 | ||||
1,000 | M | Great River Energy, 5.829%, 2017 (a) | 1,041,246 | ||||
350 | M | NY State Gas & Electric Co., 6.15%, 2017 (a) | 356,226 | ||||
900 | M | Public Service Electric & Gas Co., 6.75%, 2016 | 993,638 | ||||
350 | M | Southwestern Electric Power Co., 5.875%, 2018 | 342,786 | ||||
4,084,777 | |||||||
Waste Management—.3% | |||||||
1,000 | M | Waste Management, Inc., 6.875%, 2009 | 1,026,153 | ||||
Total Value of Corporate Bonds (cost $51,933,506) | 51,705,644 | ||||||
MORTGAGE-BACKED CERTIFICATES—13.6% | |||||||
Fannie Mae—12.8% | |||||||
1,954 | M | 5%, 7/1/2033 | 1,940,083 | ||||
13,154 | M | 5.5%, 4/1/2033–3/1/2038 | 13,323,031 | ||||
22,788 | M | 6%, 5/1/2036–1/1/2038 | 23,372,032 | ||||
5,202 | M | 6.5%, 11/1/2033–7/1/2037 | 5,402,414 | ||||
1,786 | M | 7%, 3/1/2032–8/1/2032 | 1,917,646 | ||||
45,955,206 | |||||||
Freddie Mac—.8% | |||||||
2,670 | M | 6%, 9/1/2032–9/1/2037 | 2,745,716 | ||||
Total Value of Mortgage-Backed Certificates (cost $47,795,660) | 48,700,922 | ||||||
MUNICIPAL BONDS—6.0% | |||||||
5,000 | M | Connecticut State General Obligation, 5%, 2013 | 5,449,550 | ||||
5,000 | M | Georgia State General Obligation, Series "G", 5%, 2024 | 5,221,750 | ||||
3,005 | M | Maryland St. Trans. Auth. Trans. Fac., 5%, 2022 | 3,172,529 | ||||
5,000 | M | New Jersey St. Trans. Trust Fund Auth. Rev. Bonds, | |||||
5.25%, 2015 (b) | 5,630,300 | ||||||
2,000 | M | Tobacco Settlement Fin. Auth., West Virginia, Series "A", | |||||
7.467%, 2047 | 1,909,220 | ||||||
Total Value of Municipal Bonds (cost $21,396,926) | 21,383,349 | ||||||
Principal | |||||||
Amount | |||||||
or Shares | Security | Value | |||||
U.S. GOVERNMENT AGENCY OBLIGATIONS—3.8% | |||||||
$ 5,000 | M | Fannie Mae, 5%, 2011 | $ | 5,371,000 | |||
Federal Home Loan Bank: | |||||||
5,000 | M | 6%, 2013 | 5,037,685 | ||||
2,000 | M | 5%, 2018 | 2,035,314 | ||||
1,000 | M | Freddie Mac, 6%, 2017 | 1,042,282 | ||||
Total Value of U.S. Government Agency Obligations (cost $13,303,460) | 13,486,281 | ||||||
AUCTION RATE SECURITIES (c) —2.8% | |||||||
Citizens Property Ins. Corp. FL: | |||||||
2,000 | M | 11%, 2025 | 2,000,000 | ||||
1,000 | M | 10.74%, 2026 | 1,000,000 | ||||
1,000 | M | Connecticut St. Hlth. & Educ. Facs. Rev., 11.255%, 2028 | 1,000,000 | ||||
2,000 | M | Delaware River Toll Bridge, 6.125%, 2032 | 2,000,000 | ||||
1,975 | M | North Carolina Municipal Power Agency, 5.5%, 2020 | 1,975,000 | ||||
Philadelphia PA School District: | |||||||
1,000 | M | 10%, 2021 | 1,000,000 | ||||
1,000 | M | 11.99%, 2021 | 1,000,000 | ||||
Total Value of Auction Rate Securities (cost $9,975,000) | 9,975,000 | ||||||
PREFERRED STOCKS—1.3% | |||||||
Financials—.8% | |||||||
1,000,000 | Bank of America Corp., 8%, 2049 | 1,002,890 | |||||
40,000 | Citigroup, Inc., 8.125%, Series "AA" | 961,600 | |||||
40,000 | Lehman Brothers Holdings, 7.95%, Series "J" | 823,200 | |||||
200,000 | Wachovia Corp., 7.98%, 2049 | 197,107 | |||||
2,984,797 | |||||||
U.S. Government Agency—.5% | |||||||
40,000 | Fannie Mae, 8.25% | 962,000 | |||||
40,000 | Freddie Mac, 8.375%, Series "Z" | 976,000 | |||||
1,938,000 | |||||||
Total Value of Preferred Stocks (cost $5,267,750) | 4,922,797 | ||||||
U.S. GOVERNMENT OBLIGATIONS—1.1% | |||||||
3,500 | M | U.S. Treasury Notes, 5.375%, 2031 (cost $3,691,316) | 4,049,066 | ||||
41 |
Portfolio of Investments (continued) | |||||||
TOTAL RETURN FUND | |||||||
March 31, 2008 | |||||||
Principal | |||||||
Amount | Security | Value | |||||
PASS THROUGH CERTIFICATES—.2% | |||||||
Transportation | |||||||
$ 601 | M | Continental Airlines, Inc., 8.388%, 2020 (cost $620,784) | $ | 564,799 | |||
SHORT-TERM CORPORATE NOTES—.3% | |||||||
1,100 | M | General Electric Capital Corp., 2.3%, 4/10/08 (cost $1,099,367) | 1,099,367 | ||||
SHORT-TERM TAX EXEMPT INVESTMENTS—.3% | |||||||
Adjustable Rate Notes (d) | |||||||
1,000 | M | Berks Cnty., PA, 6.6%, 2023 (c) (cost $1,000,000) | 1,000,000 | ||||
Total Value of Investments (cost $323,560,219) | 99.0 | % | 355,737,679 | ||||
Other Assets, Less Liabilities | 1.0 | 3,482,508 | |||||
Net Assets | 100.0 | % | $ | 359,220,187 | |||
* Non-income producing | |||||||
(a) Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 4). | |||||||
(b) Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date. | |||||||
(c) Interest rates on auction rate securities are determined and reset periodically by the issuer and | |||||||
are the rates in effect on March 31, 2008. | |||||||
(d) Interest rates on adjustable rate notes are determined and reset periodically by the issuer and are | |||||||
the rates in effect on March 31, 2008. | |||||||
Summary of Abbreviations: | |||||||
ADR American Depositary Receipts | |||||||
REIT Real Estate Investment Trusts | |||||||
42 | See notes to financial statements |
Fund Expenses | |||
VALUE 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 4 for | |||
a detailed explanation of the information presented in these examples. | |||
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/07) | (3/31/08) | (10/1/07-3/31/08)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $879.96 | $6.34 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,018.25 | $6.81 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $877.30 | $9.62 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,014.75 | $10.33 |
* Expenses are equal to the annualized expense ratio of 1.35% for Class A shares and 2.05% for | |||
Class B shares, multiplied by the average account value over the period, multiplied by 183/366 | |||
(to reflect the one-half year period). | |||
Portfolio Composition | |||
TOP TEN SECTORS |
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/equityincomex45x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2008, and |
are based on the total market value of investments. |
43 |
Portfolio of Investments | |||||||
VALUE FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
COMMON STOCKS—92.0% | |||||||
Consumer Discretionary—13.6% | |||||||
123,600 | bebe stores, inc. | $ | 1,328,700 | ||||
24,500 | Best Buy Company, Inc. | 1,015,770 | |||||
58,900 | Bob Evans Farms, Inc. | 1,625,051 | |||||
55,800 | Carnival Corporation | 2,258,784 | |||||
34,300 | CBS Corporation – Class "B" | 757,344 | |||||
94,700 | Cinemark Holdings, Inc. | 1,211,213 | |||||
102,500 | Clear Channel Communications, Inc. | 2,995,050 | |||||
131,400 | Family Dollar Stores, Inc. | 2,562,300 | |||||
58,300 | Gannett Company, Inc. | 1,693,615 | |||||
46,000 | Genuine Parts Company | 1,850,120 | |||||
62,000 | H&R Block, Inc. | 1,287,120 | |||||
96,400 | Home Depot, Inc. | 2,696,308 | |||||
36,800 | J.C. Penney Company, Inc. | 1,387,728 | |||||
61,200 | Kenneth Cole Productions, Inc. – Class "A" | 1,036,728 | |||||
129,700 | Lee Enterprises, Inc. | 1,298,297 | |||||
118,300 | Leggett & Platt, Inc. | 1,804,075 | |||||
50,900 | Lowe’s Companies, Inc. | 1,167,646 | |||||
16,400 | Magna International, Inc. – Class "A" | 1,183,260 | |||||
91,900 | Marine Products Corporation | 742,552 | |||||
71,500 | McDonald’s Corporation | 3,987,555 | |||||
101,700 | New York Times Company – Class "A" | 1,920,096 | |||||
42,500 | Newell Rubbermaid, Inc. | 971,975 | |||||
113,400 | Pearson PLC (ADR) | 1,539,972 | |||||
112,400 | Ruby Tuesday, Inc. | 843,000 | |||||
78,000 | Staples, Inc. | 1,724,580 | |||||
68,700 | Tiffany & Company | 2,874,408 | |||||
170,800 | Time Warner, Inc. | 2,394,616 | |||||
132,700 | Walt Disney Company | 4,164,126 | |||||
39,220 | Wyndham Worldwide Corporation | 811,069 | |||||
51,133,058 | |||||||
Consumer Staples—13.7% | |||||||
88,800 | Anheuser-Busch Companies, Inc. | 4,213,560 | |||||
76,400 | Avon Products, Inc. | 3,020,856 | |||||
32,400 | B&G Foods, Inc. – Class "A" | 356,400 | |||||
84,300 | Coca-Cola Company | 5,131,341 | |||||
59,400 | ConAgra Foods, Inc. | 1,422,630 | |||||
34,141 | Del Monte Foods Company | 325,364 | |||||
45,200 | Diageo PLC (ADR) | 3,675,664 | |||||
34,100 | Estee Lauder Companies, Inc. – Class "A" | 1,563,485 | |||||
44 |
Shares | Security | Value | |||||
Consumer Staples (continued) | |||||||
41,400 | Fomento Economico Mexicano SA de CV (ADR) | $ | 1,729,692 | ||||
32,125 | General Mills, Inc. | 1,923,645 | |||||
53,600 | H.J. Heinz Company | 2,517,592 | |||||
91,900 | Hershey Corporation | 3,461,873 | |||||
59,600 | Kimberly-Clark Corporation | 3,847,180 | |||||
160,700 | Kraft Foods, Inc. – Class "A" | 4,983,307 | |||||
30,400 | Ruddick Corporation | 1,120,544 | |||||
148,200 | Sara Lee Corporation | 2,071,836 | |||||
18,100 | Tasty Baking Company | 103,170 | |||||
37,100 | UST, Inc. | 2,022,692 | |||||
78,300 | Walgreen Company | 2,982,447 | |||||
100,900 | Wal-Mart Stores, Inc. | 5,315,412 | |||||
51,788,690 | |||||||
Energy—8.6% | |||||||
53,900 | Anadarko Petroleum Corporation | 3,397,317 | |||||
49,200 | BP PLC (ADR) | 2,983,980 | |||||
65,917 | Chevron Corporation | 5,626,675 | |||||
59,300 | ConocoPhillips | 4,519,253 | |||||
33,100 | Diamond Offshore Drilling, Inc. | 3,852,840 | |||||
8,100 | Hess Corporation | 714,258 | |||||
101,600 | Marathon Oil Corporation | 4,632,960 | |||||
54,100 | Royal Dutch Shell PLC – Class "A" (ADR) | 3,731,818 | |||||
57,600 | Tidewater, Inc. | 3,174,336 | |||||
32,633,437 | |||||||
Financials—20.0% | |||||||
18,000 | ACE, Ltd. | 991,080 | |||||
31,900 | Allstate Corporation | 1,533,114 | |||||
44,300 | Aon Corporation | 1,780,860 | |||||
45,000 | Aspen Insurance Holdings, Ltd. | 1,187,100 | |||||
35,000 | Assured Guaranty, Ltd. | 830,900 | |||||
166,200 | Bank Mutual Corporation | 1,784,988 | |||||
91,866 | Bank of America Corporation | 3,482,640 | |||||
93,028 | Bank of New York Mellon Corporation | 3,882,058 | |||||
69,821 | Brookfield Asset Management, Inc. – Class "A" | 1,873,297 | |||||
25,903 | Capital One Financial Corporation | 1,274,946 | |||||
43,456 | Chubb Corporation | 2,150,203 | |||||
54,047 | Cincinnati Financial Corporation | 2,055,948 | |||||
99,400 | Citigroup, Inc. | 2,129,148 | |||||
44,800 | Comerica, Inc. | 1,571,584 | |||||
45 |
Portfolio of Investments (continued) | |||||||
VALUE FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
Financials (continued) | |||||||
41,400 | EMC Insurance Group, Inc. | $ | 1,113,246 | ||||
39,149 | Erie Indemnity Company – Class "A" | 2,004,037 | |||||
85,900 | First Potomac Realty Trust (REIT) | 1,320,283 | |||||
91,200 | Hudson City Bancorp, Inc. | 1,612,416 | |||||
73,500 | Invesco, Ltd. | 1,790,460 | |||||
197,200 | Investors Real Estate Trust (REIT) | 1,928,616 | |||||
100,300 | JPMorgan Chase & Company | 4,307,885 | |||||
58,600 | KeyCorp | 1,286,270 | |||||
44,074 | Lincoln National Corporation | 2,291,848 | |||||
49,300 | Merrill Lynch & Company, Inc. | 2,008,482 | |||||
53,600 | Morgan Stanley | 2,449,520 | |||||
118,300 | NewAlliance Bancshares, Inc. | 1,450,358 | |||||
33,900 | One Liberty Properties, Inc. (REIT) | 545,451 | |||||
120,600 | People’s United Financial, Inc. | 2,087,586 | |||||
47,300 | Plum Creek Timber Company, Inc. (REIT) | 1,925,110 | |||||
48,800 | PNC Financial Services Group, Inc. | 3,199,816 | |||||
49,300 | Protective Life Corporation | 1,999,608 | |||||
115,117 | Regions Financial Corporation | 2,273,561 | |||||
33,993 | State Street Corporation | 2,685,447 | |||||
41,300 | SunTrust Banks, Inc. | 2,277,282 | |||||
116,400 | U-Store-It Trust (REIT) | 1,318,812 | |||||
64,913 | Wachovia Corporation | 1,752,651 | |||||
54,000 | Waddell & Reed Financial, Inc. – Class "A" | 1,735,020 | |||||
96,300 | Wells Fargo & Company | 2,802,330 | |||||
97,300 | Westfield Financial, Inc. | 950,621 | |||||
75,644,582 | |||||||
Health Care—5.5% | |||||||
71,400 | Abbott Laboratories | 3,937,710 | |||||
27,875 | Covidien, Ltd. | 1,233,469 | |||||
55,600 | GlaxoSmithKline PLC (ADR) | 2,359,108 | |||||
90,800 | Johnson & Johnson | 5,890,196 | |||||
49,700 | Novartis AG (ADR) | 2,546,131 | |||||
179,500 | Pfizer, Inc. | 3,756,935 | |||||
81,700 | Schering-Plough Corporation | 1,177,297 | |||||
20,900,846 | |||||||
46 |
Shares | Security | Value | |||||
Industrials—10.0% | |||||||
36,900 | 3M Company | $ | 2,920,635 | ||||
2,600 | Alexander & Baldwin, Inc. | 112,008 | |||||
51,700 | Avery Dennison Corporation | 2,546,225 | |||||
73,300 | Dover Corporation | 3,062,474 | |||||
37,600 | General Dynamics Corporation | 3,134,712 | |||||
115,700 | General Electric Company | 4,282,057 | |||||
65,400 | Honeywell International, Inc. | 3,689,868 | |||||
17,800 | Hubbell, Inc. – Class "B" | 777,682 | |||||
46,800 | Illinois Tool Works, Inc. | 2,257,164 | |||||
36,230 | Lawson Products, Inc. | 998,137 | |||||
86,200 | Masco Corporation | 1,709,346 | |||||
32,900 | Norfolk Southern Corporation | 1,787,128 | |||||
65,900 | Pitney Bowes, Inc. | 2,307,818 | |||||
57,400 | Textainer Group Holdings, Ltd. | 865,592 | |||||
30,375 | Tyco International, Ltd. | 1,338,019 | |||||
47,400 | United Parcel Service, Inc. – Class "B" | 3,461,148 | |||||
139,600 | Werner Enterprises, Inc. | 2,590,976 | |||||
37,840,989 | |||||||
Information Technology—6.7% | |||||||
74,700 | Automatic Data Processing, Inc. | 3,166,533 | |||||
76,300 | AVX Corporation | 977,403 | |||||
36,465 | Bel Fuse, Inc. – Class "B" | 1,015,915 | |||||
19,100 | Broadridge Financial Solutions, Inc. | 336,160 | |||||
76,400 | Hewlett-Packard Company | 3,488,424 | |||||
64,700 | Intel Corporation | 1,370,346 | |||||
12,200 | International Business Machines Corporation | 1,404,708 | |||||
159,100 | Methode Electronics, Inc. | 1,859,879 | |||||
120,500 | Microsoft Corporation | 3,419,790 | |||||
66,300 | Molex, Inc. | 1,535,508 | |||||
130,700 | Motorola, Inc. | 1,215,510 | |||||
67,200 | Nokia Corporation – Class "A" (ADR) | 2,138,976 | |||||
38,600 | Texas Instruments, Inc. | 1,091,222 | |||||
35,275 | Tyco Electronics, Ltd. | 1,210,638 | |||||
38,500 | Xilinx, Inc. | 914,375 | |||||
25,145,387 | |||||||
47 |
Portfolio of Investments (continued) | |||||||
VALUE FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
Materials—6.8% | |||||||
31,500 | Air Products & Chemicals, Inc. | $ | 2,898,000 | ||||
63,200 | Alcoa, Inc. | 2,278,992 | |||||
38,600 | Bemis Company, Inc. | 981,598 | |||||
31,200 | Compass Minerals International, Inc. | 1,840,176 | |||||
106,700 | Dow Chemical Company | 3,931,895 | |||||
83,200 | DuPont (E.I.) de Nemours & Company | 3,890,432 | |||||
72,300 | Glatfelter | 1,092,453 | |||||
46,100 | Lubrizol Corporation | 2,559,011 | |||||
47,200 | MeadWestvaco Corporation | 1,284,784 | |||||
73,830 | Myers Industries, Inc. | 969,388 | |||||
144,800 | Sappi, Ltd. (ADR) | 1,663,752 | |||||
73,100 | Sonoco Products Company | 2,092,853 | |||||
25,483,334 | |||||||
Telecommunication Services—3.5% | |||||||
135,430 | AT&T, Inc. | 5,186,969 | |||||
55,200 | D&E Communications, Inc. | 491,280 | |||||
21,420 | Embarq Corporation | 858,942 | |||||
17,600 | Nippon Telegraph and Telephone Corporation (ADR) | 381,568 | |||||
134,400 | Sprint Nextel Corporation | 899,136 | |||||
24,000 | Telephone & Data Systems, Inc. | 942,480 | |||||
30,000 | Telephone & Data Systems, Inc. – Special Shares | 1,119,000 | |||||
86,328 | Verizon Communications, Inc. | 3,146,656 | |||||
13,026,031 | |||||||
Utilities—3.6% | |||||||
20,150 | American States Water Company | 725,400 | |||||
5,339 | Brookfield Infrastructure Partners LP | 90,496 | |||||
30,300 | FPL Group, Inc. | 1,901,022 | |||||
6,600 | Integrys Energy Group, Inc. | 307,824 | |||||
84,250 | MDU Resources Group, Inc. | 2,068,337 | |||||
130,600 | NiSource, Inc. | 2,251,544 | |||||
40,200 | ONEOK, Inc. | 1,794,126 | |||||
56,700 | Southwest Gas Corporation | 1,585,332 | |||||
48,700 | United Utilities PLC (ADR) | 1,336,698 | |||||
50,300 | Vectren Corporation | 1,349,549 | |||||
13,410,328 | |||||||
Total Value of Common Stocks (cost $300,520,088) | 347,006,682 | ||||||
48 |
Shares or | |||||||
Principal | |||||||
Amount | Security | Value | |||||
PREFERRED STOCKS—.7% | |||||||
Financials—.2% | |||||||
44,000 | Citigroup Capital XVI, 6.45%, 2066 – Series "W" | $ | 893,200 | ||||
Telecommunication Services—.3% | |||||||
44,800 | AT&T, Inc., 6.375%, 2056 | 1,119,104 | |||||
Utilities—.2% | |||||||
31,600 | Entergy Louisiana, LLC, 7.6%, 2032 | 796,952 | |||||
Total Value of Preferred Stocks (cost $3,035,046) | 2,809,256 | ||||||
CORPORATE BONDS—.1% | |||||||
Utilities | |||||||
$ 500 | M | Union Electric Co., 6.75%, 2008 (cost $499,982) | 500,961 | ||||
SHORT-TERM CORPORATE NOTES—5.2% | |||||||
2,000 | M | General Electric Capital Corp., 2.3%, 4/10/08 | 1,998,850 | ||||
17,500 | M | PepsiCo, Inc., 2.15%, 4/23/08 (a) | 17,477,000 | ||||
Total Value of Short-Term Corporate Notes (cost $19,475,850) | 19,475,850 | ||||||
SHORT-TERM U.S. GOVERNMENT AGENCY | |||||||
OBLIGATIONS—1.7% | |||||||
6,500 | M | Federal Home Loan Bank, 1.75%, 4/8/08 (cost $6,497,788) | 6,497,788 | ||||
Total Value of Investments (cost $330,028,754) | 99.7 | % | 376,290,537 | ||||
Other Assets, Less Liabilities | .3 | 1,301,924 | |||||
Net Assets | 100.0 | % | $ | 377,592,461 | |||
(a) Security exempt from registration under Section 4(2) of the Securities Act of 1933 (see Note 4). | |||||||
Summary of Abbreviations: | |||||||
ADR American Depositary Receipts | |||||||
REIT Real Estate Investment Trust | |||||||
See notes to financial statements | 49 |
Fund Expenses | |||
BLUE CHIP 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 4 for | |||
a detailed explanation of the information presented in these examples. | |||
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/07) | (3/31/08) | (10/1/07-3/31/08)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $874.96 | $6.52 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,018.05 | $7.01 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $872.19 | $9.78 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,014.55 | $10.53 |
* Expenses are equal to the annualized expense ratio of 1.39% for Class A shares and 2.09% for | |||
Class B shares, multiplied by the average account value over the period, multiplied by 183/366 | |||
(to reflect the one-half year period). | |||
Portfolio Composition | |||
TOP TEN SECTORS |
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/equityincomex52x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2008, and |
are based on the total market value of investments. |
50 |
Portfolio of Investments | |||||||
BLUE CHIP FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
COMMON STOCKS—97.9% | |||||||
Consumer Discretionary—9.5% | |||||||
41,200 | Best Buy Company, Inc. | $ | 1,708,152 | ||||
45,100 | Carnival Corporation | 1,825,648 | |||||
89,295 | CBS Corporation – Class "B" | 1,971,634 | |||||
56,800 | Clear Channel Communications, Inc. | 1,659,696 | |||||
47,394 | Comcast Corporation – Class "A" | 916,600 | |||||
84,350 | * | Comcast Corporation – Special Class "A" | 1,600,119 | ||||
57,200 | H&R Block, Inc. | 1,187,472 | |||||
151,500 | Home Depot, Inc. | 4,237,455 | |||||
35,600 | * | Kohl’s Corporation | 1,526,884 | ||||
127,100 | Lowe’s Companies, Inc. | 2,915,674 | |||||
67,400 | McDonald’s Corporation | 3,758,898 | |||||
162,400 | News Corporation – Class "A" | 3,045,000 | |||||
34,000 | NIKE, Inc. – Class "B" | 2,312,000 | |||||
64,100 | Staples, Inc. | 1,417,251 | |||||
63,500 | Target Corporation | 3,218,180 | |||||
283,300 | Time Warner, Inc. | 3,971,866 | |||||
70,600 | * | Viacom, Inc. – Class "B" | 2,797,172 | ||||
147,000 | Walt Disney Company | 4,612,860 | |||||
30,920 | Wyndham Worldwide Corporation | 639,426 | |||||
45,321,987 | |||||||
Consumer Staples—14.5% | |||||||
81,600 | Altria Group, Inc. | 1,811,520 | |||||
75,800 | Anheuser-Busch Companies, Inc. | 3,596,710 | |||||
85,600 | Avon Products, Inc. | 3,384,624 | |||||
143,700 | Coca-Cola Company | 8,747,019 | |||||
24,200 | Colgate-Palmolive Company | 1,885,422 | |||||
29,200 | Costco Wholesale Corporation | 1,897,124 | |||||
91,600 | CVS Caremark Corporation | 3,710,716 | |||||
36,400 | General Mills, Inc. | 2,179,632 | |||||
34,100 | Hershey Company | 1,284,547 | |||||
61,800 | Kimberly-Clark Corporation | 3,989,190 | |||||
123,724 | Kraft Foods, Inc. – Class "A" | 3,836,681 | |||||
106,900 | PepsiCo, Inc. | 7,718,180 | |||||
81,600 | * | Philip Morris International, Inc. | 4,127,328 | ||||
140,940 | Procter & Gamble Company | 9,875,666 | |||||
80,200 | Walgreen Company | 3,054,818 | |||||
161,730 | Wal-Mart Stores, Inc. | 8,519,936 | |||||
69,619,113 | |||||||
51 |
Portfolio of Investments (continued) | |||||||
BLUE CHIP FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
Energy—12.9% | |||||||
23,500 | BP PLC (ADR) | $ | 1,425,275 | ||||
153,100 | Chevron Corporation | 13,068,616 | |||||
89,870 | ConocoPhillips | 6,848,993 | |||||
229,600 | ExxonMobil Corporation | 19,419,568 | |||||
105,790 | Halliburton Company | 4,160,721 | |||||
17,500 | Hess Corporation | 1,543,150 | |||||
84,200 | Schlumberger, Ltd. | 7,325,400 | |||||
80,350 | Spectra Energy Corporation | 1,827,963 | |||||
32,251 | * | Transocean, Inc. | 4,360,335 | ||||
33,500 | Valero Energy Corporation | 1,645,185 | |||||
61,625,206 | |||||||
Financials—13.7% | |||||||
38,000 | ACE, Ltd. | 2,092,280 | |||||
31,200 | Allstate Corporation | 1,499,472 | |||||
98,500 | American Express Company | 4,306,420 | |||||
111,200 | American International Group, Inc. | 4,809,400 | |||||
17,900 | Ameriprise Financial, Inc. | 928,115 | |||||
171,966 | Bank of America Corporation | 6,519,231 | |||||
147,187 | Bank of New York Mellon Corporation | 6,142,114 | |||||
850 | * | Berkshire Hathaway, Inc. – Class "B" | 3,801,965 | ||||
48,600 | Capital One Financial Corporation | 2,392,092 | |||||
37,300 | Chubb Corporation | 1,845,604 | |||||
174,800 | Citigroup, Inc. | 3,744,216 | |||||
58,750 | Discover Financial Services | 961,737 | |||||
174,068 | JPMorgan Chase & Company | 7,476,221 | |||||
10,200 | Lehman Brothers Holdings, Inc. | 383,928 | |||||
55,300 | Marsh & McLennan Companies, Inc. | 1,346,555 | |||||
53,300 | Merrill Lynch & Company, Inc. | 2,171,442 | |||||
65,300 | Morgan Stanley | 2,984,210 | |||||
20,000 | PNC Financial Services Group, Inc. | 1,311,400 | |||||
22,500 | SunTrust Banks, Inc. | 1,240,650 | |||||
41,000 | Travelers Companies, Inc. | 1,961,850 | |||||
64,500 | U.S. Bancorp | 2,087,220 | |||||
73,400 | Wachovia Corporation | 1,981,800 | |||||
117,400 | Wells Fargo & Company | 3,416,340 | |||||
65,404,262 | |||||||
52 |
Shares | Security | Value | |||||
Health Care—12.3% | |||||||
93,100 | Abbott Laboratories | $ | 5,134,465 | ||||
33,200 | Aetna, Inc. | 1,397,388 | |||||
76,500 | * | Amgen, Inc. | 3,196,170 | ||||
27,300 | Baxter International, Inc. | 1,578,486 | |||||
136,300 | Bristol-Myers Squibb Company | 2,903,190 | |||||
46,725 | Covidien, Ltd. | 2,067,581 | |||||
19,100 | * | Genentech, Inc. | 1,550,538 | ||||
184,800 | Johnson & Johnson | 11,987,976 | |||||
90,700 | Medtronic, Inc. | 4,387,159 | |||||
81,700 | Merck & Company, Inc. | 3,100,515 | |||||
80,300 | Novartis AG (ADR) | 4,113,769 | |||||
403,560 | Pfizer, Inc. | 8,446,511 | |||||
31,700 | * | St. Jude Medical, Inc. | 1,369,123 | ||||
44,200 | Teva Pharmaceutical Industries, Ltd. (ADR) | 2,041,598 | |||||
87,800 | UnitedHealth Group, Inc. | 3,016,808 | |||||
66,100 | Wyeth | 2,760,336 | |||||
59,051,613 | |||||||
Industrials—11.6% | |||||||
56,100 | 3M Company | 4,440,315 | |||||
21,200 | Boeing Company | 1,576,644 | |||||
29,600 | Caterpillar, Inc. | 2,317,384 | |||||
45,600 | Dover Corporation | 1,905,168 | |||||
84,200 | Emerson Electric Company | 4,332,932 | |||||
454,200 | General Electric Company | 16,809,942 | |||||
44,600 | Honeywell International, Inc. | 2,516,332 | |||||
39,400 | Illinois Tool Works, Inc. | 1,900,262 | |||||
24,800 | ITT Corporation | 1,284,888 | |||||
33,700 | Lockheed Martin Corporation | 3,346,410 | |||||
34,500 | Northrop Grumman Corporation | 2,684,445 | |||||
41,225 | Tyco International, Ltd. | 1,815,961 | |||||
46,600 | United Parcel Service, Inc. – Class "B" | 3,402,732 | |||||
102,700 | United Technologies Corporation | 7,067,814 | |||||
55,401,229 | |||||||
53 |
Portfolio of Investments (continued) | |||||||
BLUE CHIP FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
Information Technology—17.3% | |||||||
36,320 | Accenture, Ltd. – Class "A" | $ | 1,277,374 | ||||
44,300 | Analog Devices, Inc. | 1,307,736 | |||||
17,400 | * | Apple, Inc. | 2,496,900 | ||||
72,100 | Applied Materials, Inc. | 1,406,671 | |||||
31,800 | Automatic Data Processing, Inc. | 1,348,002 | |||||
272,200 | * | Cisco Systems, Inc. | 6,557,298 | ||||
92,000 | Corning, Inc. | 2,211,680 | |||||
183,700 | * | Dell, Inc. | 3,659,304 | ||||
31,500 | * | eBay, Inc. | 939,960 | ||||
226,625 | * | EMC Corporation | 3,249,803 | ||||
100,900 | Hewlett-Packard Company | 4,607,094 | |||||
286,000 | Intel Corporation | 6,057,480 | |||||
70,100 | International Business Machines Corporation | 8,071,314 | |||||
555,945 | Microsoft Corporation | 15,777,719 | |||||
160,100 | Motorola, Inc. | 1,488,930 | |||||
135,600 | Nokia Corporation – Class "A" (ADR) | 4,316,148 | |||||
183,300 | * | Oracle Corporation | 3,585,348 | ||||
69,170 | QUALCOMM, Inc. | 2,835,970 | |||||
82,500 | * | Symantec Corporation | 1,371,150 | ||||
109,900 | Texas Instruments, Inc. | 3,106,873 | |||||
50,225 | Tyco Electronics, Ltd. | 1,723,722 | |||||
103,200 | Western Union Company | 2,195,064 | |||||
80,200 | Xerox Corporation | 1,200,594 | |||||
68,100 | * | Yahoo!, Inc. | 1,970,133 | ||||
82,762,267 | |||||||
Materials—2.8% | |||||||
58,600 | Alcoa, Inc. | 2,113,116 | |||||
96,900 | Dow Chemical Company | 3,570,765 | |||||
55,900 | DuPont (E.I.) de Nemours & Company | 2,613,884 | |||||
72,700 | International Paper Company | 1,977,440 | |||||
21,300 | Newmont Mining Corporation | 964,890 | |||||
19,700 | PPG Industries, Inc. | 1,192,047 | |||||
18,900 | Weyerhaeuser Company | 1,229,256 | |||||
13,661,398 | |||||||
54 |
Shares or | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Telecommunication Services—2.3% | |||||||
164,700 | AT&T, Inc. | $ | 6,308,010 | ||||
29,638 | Sprint Nextel Corporation | 198,278 | |||||
129,700 | Verizon Communications, Inc. | 4,727,565 | |||||
11,233,853 | |||||||
Utilities—1.0% | |||||||
177,700 | Duke Energy Corporation | 3,171,945 | |||||
23,500 | FPL Group, Inc. | 1,474,390 | |||||
4,646,335 | |||||||
Total Value of Common Stocks (cost $346,119,301) | 468,727,263 | ||||||
SHORT-TERM CORPORATE NOTES—2.0% | |||||||
$1,200 | M | General Electric Capital Corp., 2.3%, 4/10/08 | 1,199,310 | ||||
2,300 | M | Madison Gas & Electric Co., 2.35%, 4/11/08 | 2,298,498 | ||||
PepsiCo, Inc.: | |||||||
1,500 | M | 2.54%, 4/10/08 (a) | 1,499,046 | ||||
4,500 | M | 2.15%, 4/23/08 (a) | 4,494,086 | ||||
Total Value of Short-Term Corporate Notes (cost $9,490,940) | 9,490,940 | ||||||
Total Value of Investments (cost $355,610,241) | 99.9 | % | 478,218,203 | ||||
Other Assets, Less Liabilities | .1 | 370,842 | |||||
Net Assets | 100.0 | % | $ | 478,589,045 | |||
* Non-income producing | |||||||
(a) Security exempt from registration under Section 4(2) of the Securities Act of 1933 (see Note 4). | |||||||
Summary of Abbreviations: | |||||||
ADR American Depositary Receipts | |||||||
See notes to financial statements | 55 |
Fund Expenses | |||
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 4 for | |||
a detailed explanation of the information presented in these examples. | |||
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/07) | (3/31/08) | (10/1/07-3/31/08)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $866.29 | $6.30 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,018.25 | $6.81 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $863.19 | $9.55 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,014.75 | $10.33 |
* Expenses are equal to the annualized expense ratio of 1.35% for Class A shares and 2.05% for | |||
Class B shares, multiplied by the average account value over the period, multiplied by 183/366 | |||
(to reflect the one-half year period). | |||
Portfolio Composition | |||
TOP TEN SECTORS |
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/equityincomex58x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2008, and |
are based on the total market value of investments. |
56 |
Portfolio of Investments | |||||||
GROWTH & INCOME FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
COMMON STOCKS—99.5% | |||||||
Consumer Discretionary—13.9% | |||||||
155,000 | bebe stores, inc. | $ | 1,666,250 | ||||
110,000 | BorgWarner, Inc. | 4,733,300 | |||||
255,000 | Brown Shoe Company, Inc. | 3,842,850 | |||||
120,000 | * | Carter’s, Inc. | 1,938,000 | ||||
200,000 | CBS Corporation – Class "B" | 4,416,000 | |||||
186,600 | * | CEC Entertainment, Inc. | 5,389,008 | ||||
150,000 | Cinemark Holdings, Inc. | 1,918,500 | |||||
190,000 | Clear Channel Communications, Inc. | 5,551,800 | |||||
130,300 | * | Coach, Inc. | 3,928,545 | ||||
100,000 | * | Eddie Bauer Holdings, Inc. | 389,000 | ||||
70,000 | Genuine Parts Company | 2,815,400 | |||||
100,000 | H&R Block, Inc. | 2,076,000 | |||||
235,000 | Home Depot, Inc. | 6,572,950 | |||||
55,000 | J.C. Penney Company, Inc. | 2,074,050 | |||||
140,000 | Leggett & Platt, Inc. | 2,135,000 | |||||
203,900 | * | Lincoln Educational Services Corporation | 2,446,800 | ||||
175,000 | McDonald’s Corporation | 9,759,750 | |||||
385,000 | * | Morgans Hotel Group Company | 5,705,700 | ||||
221,700 | Movado Group, Inc. | 4,320,933 | |||||
245,000 | Newell Rubbermaid, Inc. | 5,603,150 | |||||
50,000 | Polo Ralph Lauren Corporation – Class "A" | 2,914,500 | |||||
245,000 | Ruby Tuesday, Inc. | 1,837,500 | |||||
67,500 | Sherwin-Williams Company | 3,445,200 | |||||
200,000 | Staples, Inc. | 4,422,000 | |||||
100,000 | * | Steiner Leisure, Ltd. | 3,300,000 | ||||
112,500 | * | Viacom, Inc. – Class "B" | 4,457,250 | ||||
212,100 | Westwood One, Inc. | 445,410 | |||||
240,000 | Wyndham Worldwide Corporation | 4,963,200 | |||||
103,068,046 | |||||||
Consumer Staples—10.9% | |||||||
175,000 | Altria Group, Inc. | 3,885,000 | |||||
130,000 | Avon Products, Inc. | 5,140,200 | |||||
60,000 | * | Chattem, Inc. | 3,980,400 | ||||
67,500 | Coca-Cola Company | 4,108,725 | |||||
230,000 | CVS Caremark Corporation | 9,317,300 | |||||
107,263 | Kraft Foods, Inc. – Class "A" | 3,326,225 | |||||
485,000 | Nu Skin Enterprises, Inc. – Class "A" | 8,739,700 | |||||
50,000 | PepsiCo, Inc. | 3,610,000 | |||||
175,000 | * | Philip Morris International, Inc. | 8,851,500 | ||||
57 |
Portfolio of Investments (continued) | |||||||
GROWTH & INCOME FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
Consumer Staples (continued) | |||||||
77,500 | Procter & Gamble Company | $ | 5,430,425 | ||||
185,000 | Safeway, Inc. | 5,429,750 | |||||
87,050 | Tootsie Roll Industries, Inc. | 2,193,671 | |||||
250,000 | Walgreen Company | 9,522,500 | |||||
150,000 | Wal-Mart Stores, Inc. | 7,902,000 | |||||
81,437,396 | |||||||
Energy—10.4% | |||||||
60,000 | Anadarko Petroleum Corporation | 3,781,800 | |||||
255,000 | * | Cal Dive International, Inc. | 2,646,900 | ||||
50,000 | Chesapeake Energy Corporation | 2,307,500 | |||||
90,000 | ConocoPhillips | 6,858,900 | |||||
115,000 | ExxonMobil Corporation | 9,726,700 | |||||
7,153 | Hugoton Royalty Trust | 197,280 | |||||
33,096 | Marathon Oil Corporation | 1,509,178 | |||||
160,000 | Noble Corporation | 7,947,200 | |||||
140,000 | Sasol, Ltd. (ADR) | 6,774,600 | |||||
150,000 | Suncor Energy, Inc. | 14,452,500 | |||||
28,200 | * | Swift Energy Company | 1,268,718 | ||||
62,964 | * | Transocean, Inc. | 8,512,733 | ||||
75,000 | World Fuel Services Corporation | 2,105,250 | |||||
150,000 | XTO Energy, Inc. | 9,279,000 | |||||
77,368,259 | |||||||
Financials—11.2% | |||||||
52,000 | American Express Company | 2,273,440 | |||||
110,000 | American International Group, Inc. | 4,757,500 | |||||
10,000 | Ameriprise Financial, Inc. | 518,500 | |||||
110,000 | Astoria Financial Corporation | 2,987,600 | |||||
150,000 | Bank of America Corporation | 5,686,500 | |||||
182,000 | Brookline Bancorp, Inc. | 2,089,360 | |||||
65,380 | Capital One Financial Corporation | 3,218,004 | |||||
114,000 | Citigroup, Inc. | 2,441,880 | |||||
200,000 | Colonial BancGroup, Inc. | 1,926,000 | |||||
100,000 | Discover Financial Services | 1,637,000 | |||||
180,000 | * | First Mercury Financial Corporation | 3,133,800 | ||||
50,000 | * | Guaranty Financial Group, Inc. | 531,000 | ||||
50,000 | Hartford Financial Services Group, Inc. | 3,788,500 | |||||
58 |
Shares | Security | Value | |||||
Financials (continued) | |||||||
177,500 | JPMorgan Chase & Company | $ | 7,623,625 | ||||
91,000 | KeyCorp | 1,997,450 | |||||
25,000 | Lehman Brothers Holdings, Inc. | 941,000 | |||||
40,000 | Merrill Lynch & Company, Inc. | 1,629,600 | |||||
70,000 | Morgan Stanley | 3,199,000 | |||||
200,000 | New York Community Bancorp, Inc. | 3,644,000 | |||||
265,000 | NewAlliance Bancshares, Inc. | 3,248,900 | |||||
44,400 | Plum Creek Timber Company, Inc. (REIT) | 1,807,080 | |||||
130,000 | South Financial Group, Inc. | 1,931,800 | |||||
221,000 | Sovereign Bancorp, Inc. | 2,059,720 | |||||
260,000 | Sunstone Hotel Investors, Inc. (REIT) | 4,162,600 | |||||
50,000 | SunTrust Banks, Inc. | 2,757,000 | |||||
200,000 | U.S. Bancorp | 6,472,000 | |||||
40,000 | Wachovia Corporation | 1,080,000 | |||||
60,000 | Webster Financial Corporation | 1,672,200 | |||||
140,000 | Wells Fargo & Company | 4,074,000 | |||||
83,289,059 | |||||||
Health Care—10.3% | |||||||
140,000 | Abbott Laboratories | 7,721,000 | |||||
100,000 | Aetna, Inc. | 4,209,000 | |||||
46,700 | * | Amgen, Inc. | 1,951,126 | ||||
22,417 | Baxter International, Inc. | 1,296,151 | |||||
48,750 | Covidien, Ltd. | 2,157,187 | |||||
20,000 | * | Genentech, Inc. | 1,623,600 | ||||
175,000 | Johnson & Johnson | 11,352,250 | |||||
50,000 | * | Laboratory Corporation of America Holdings | 3,684,000 | ||||
75,000 | Medtronic, Inc. | 3,627,750 | |||||
100,000 | Merck & Company, Inc. | 3,795,000 | |||||
425,000 | Pfizer, Inc. | 8,895,250 | |||||
125,000 | Sanofi-Aventis (ADR) | 4,692,500 | |||||
125,000 | * | St. Jude Medical, Inc. | 5,398,750 | ||||
100,000 | * | Thermo Fisher Scientific, Inc. | 5,684,000 | ||||
90,000 | * | TriZetto Group, Inc. | 1,502,100 | ||||
60,000 | UnitedHealth Group, Inc. | 2,061,600 | |||||
175,000 | Wyeth | 7,308,000 | |||||
76,959,264 | |||||||
59 |
Portfolio of Investments (continued) | |||||||
GROWTH & INCOME FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
Industrials—19.7% | |||||||
155,000 | 3M Company | $ | 12,268,250 | ||||
210,000 | * | AAR Corporation | 5,726,700 | ||||
84,600 | Alexander & Baldwin, Inc. | 3,644,568 | |||||
342,600 | * | Altra Holdings, Inc. | 4,607,970 | ||||
155,000 | Armstrong World Industries, Inc. | 5,527,300 | |||||
155,000 | Avery Dennison Corporation | 7,633,750 | |||||
210,000 | Barnes Group, Inc. | 4,819,500 | |||||
100,000 | * | BE Aerospace, Inc. | 3,495,000 | ||||
80,000 | Burlington Northern Santa Fe Corporation | 7,377,600 | |||||
80,000 | Dover Corporation | 3,342,400 | |||||
20,000 | * | Gardner Denver, Inc. | 742,000 | ||||
270,000 | General Electric Company | 9,992,700 | |||||
130,000 | Harsco Corporation | 7,199,400 | |||||
180,000 | Honeywell International, Inc. | 10,155,600 | |||||
125,000 | IDEX Corporation | 3,836,250 | |||||
137,500 | Illinois Tool Works, Inc. | 6,631,625 | |||||
55,000 | Lockheed Martin Corporation | 5,461,500 | |||||
315,000 | * | Mobile Mini, Inc. | 5,985,000 | ||||
90,000 | Northrop Grumman Corporation | 7,002,900 | |||||
110,000 | * | PGT, Inc. | 301,400 | ||||
100,000 | * | Pinnacle Airlines Corporation | 873,000 | ||||
55,000 | Precision Castparts Corporation | 5,614,400 | |||||
300,000 | TAL International Group, Inc. | 7,071,000 | |||||
137,800 | Textainer Group Holdings, Ltd. | 2,078,024 | |||||
100,000 | Tyco International, Ltd. | 4,405,000 | |||||
155,000 | United Technologies Corporation | 10,667,100 | |||||
146,459,937 | |||||||
Information Technology—15.1% | |||||||
30,000 | * | CACI International, Inc. – Class "A" | 1,366,500 | ||||
400,000 | * | Cisco Systems, Inc. | 9,636,000 | ||||
150,900 | * | Electronics for Imaging, Inc. | 2,251,428 | ||||
371,000 | * | EMC Corporation | 5,320,140 | ||||
300,000 | * | Entrust, Inc. | 750,000 | ||||
190,000 | Harris Corporation | 9,220,700 | |||||
150,000 | Hewlett-Packard Company | 6,849,000 | |||||
185,000 | Intel Corporation | 3,918,300 | |||||
115,000 | International Business Machines Corporation | 13,241,100 | |||||
100,000 | * | Macrovision Corporation | 1,350,000 | ||||
400,000 | Microsoft Corporation | 11,352,000 | |||||
275,000 | Motorola, Inc. | 2,557,500 | |||||
60 |
Shares | Security | Value | |||||
Information Technology (continued) | |||||||
175,360 | * | NCI, Inc. – Class "A" | $ | 3,300,275 | |||
200,000 | Nokia Corporation – Class "A" (ADR) | 6,366,000 | |||||
200,000 | * | Parametric Technology Corporation | 3,196,000 | ||||
190,000 | QUALCOMM, Inc. | 7,790,000 | |||||
125,000 | * | SI International, Inc. | 2,398,750 | ||||
300,000 | * | Symantec Corporation | 4,986,000 | ||||
475,000 | * | TIBCO Software, Inc. | 3,391,500 | ||||
48,750 | Tyco Electronics, Ltd. | 1,673,100 | |||||
85,000 | * | ValueClick, Inc. | 1,466,250 | ||||
120,000 | Western Union Company | 2,552,400 | |||||
100,000 | * | Wright Express Corporation | 3,073,000 | ||||
200,000 | Xilinx, Inc. | 4,750,000 | |||||
112,755,943 | |||||||
Materials—5.9% | |||||||
30,000 | Ashland, Inc. | 1,419,000 | |||||
200,000 | Celanese Corporation – Series "A" | 7,810,000 | |||||
85,000 | Dow Chemical Company | 3,132,250 | |||||
80,000 | Freeport-McMoRan Copper & Gold, Inc. | 7,697,600 | |||||
141,300 | Lubrizol Corporation | 7,843,563 | |||||
70,000 | PPG Industries, Inc. | 4,235,700 | |||||
65,000 | Praxair, Inc. | 5,474,950 | |||||
212,700 | RPM International, Inc. | 4,453,938 | |||||
150,000 | Temple-Inland, Inc. | 1,908,000 | |||||
43,975,001 | |||||||
Telecommunication Services—1.4% | |||||||
200,000 | AT&T, Inc. | 7,660,000 | |||||
75,000 | Verizon Communications, Inc. | 2,733,750 | |||||
10,393,750 | |||||||
Utilities—.7% | |||||||
115,400 | Atmos Energy Corporation | 2,942,700 | |||||
50,000 | Consolidated Edison, Inc. | 1,985,000 | |||||
4,927,700 | |||||||
Total Value of Common Stocks (cost $623,808,860) | 740,634,355 | ||||||
61 |
Portfolio of Investments (continued) | |||||||
GROWTH & INCOME FUND | |||||||
March 31, 2008 | |||||||
Principal | |||||||
Amount | Security | Value | |||||
SHORT-TERM CORPORATE NOTES—.3% | |||||||
$1,000 | M | General Electric Capital Corp., 2.3%, 4/10/08 | $ | 999,425 | |||
1,300 | M | PepsiCo, Inc., 2.54%, 4/10/08 (a) | 1,299,173 | ||||
Total Value of Short-Term Corporate Notes (cost $2,298,598) | 2,298,598 | ||||||
Total Value of Investments (cost $626,107,458) | 99.8 | % | 742,932,953 | ||||
Other Assets, Less Liabilities | .2 | 1,478,565 | |||||
Net Assets | 100.0 | % | $ | 744,411,518 | |||
* Non-income producing | |||||||
(a) Security exempt from registration under Section 4(2) of the Securities Act of 1933 (see Note 4). | |||||||
Summary of Abbreviations: | |||||||
ADR American Depositary Receipts | |||||||
REIT Real Estate Investment Trust | |||||||
62 | See notes to financial statements |
Fund Expenses | |||
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 4 for | |||
a detailed explanation of the information presented in these examples. | |||
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/07) | (3/31/08) | (10/1/07-3/31/08)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $903.81 | $8.04 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,016.55 | $8.52 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $899.51 | $11.35 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,013.05 | $12.03 |
* Expenses are equal to the annualized expense ratio of 1.69% for Class A shares and 2.39% for | |||
Class B shares, multiplied by the average account value over the period, multiplied by 183/366 | |||
(to reflect the one-half year period). Expenses paid during the period are net of expenses waived. | |||
Portfolio Composition | |||
TOP TEN SECTORS |
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/equityincomex65x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2008, and |
are based on the total market value of investments. |
63 |
Portfolio of Investments | |||||||
GLOBAL FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
COMMON STOCKS—97.3% | |||||||
United States—42.1% | |||||||
18,415 | Abbott Laboratories | $ | 1,015,587 | ||||
17,800 | Accenture, Ltd. – Class "A" | 626,026 | |||||
17,270 | ACE, Ltd. | 950,886 | |||||
11,900 | * | Adobe Systems, Inc. | 423,521 | ||||
5,000 | * | Affiliated Managers Group, Inc. | 453,700 | ||||
25,290 | Altria Group, Inc. | 561,438 | |||||
72,320 | American Eagle Outfitters, Inc. | 1,266,323 | |||||
66,820 | American Electric Power Company, Inc. | 2,781,717 | |||||
27,873 | American International Group, Inc. | 1,205,507 | |||||
39,380 | * | Amgen, Inc. | 1,645,296 | ||||
19,865 | Apache Corporation | 2,400,089 | |||||
3,000 | * | Apple, Inc. | 430,500 | ||||
34,980 | Applied Materials, Inc. | 682,460 | |||||
78,325 | AT&T, Inc. | 2,999,847 | |||||
123,225 | Bank of America Corporation | 4,671,460 | |||||
5,915 | Boeing Company | 439,899 | |||||
3,900 | Cardinal Health, Inc. | 204,789 | |||||
33,700 | * | Carter’s, Inc. | 544,255 | ||||
41,835 | Caterpillar, Inc. | 3,275,262 | |||||
133,135 | * | Cisco Systems, Inc. | 3,207,222 | ||||
690 | CME Group, Inc. | 323,679 | |||||
7,300 | Colgate-Palmolive Company | 568,743 | |||||
13,355 | ConocoPhillips | 1,017,785 | |||||
103,530 | Corning, Inc. | 2,488,861 | |||||
33,200 | * | Coventry Health Care, Inc. | 1,339,620 | ||||
30,860 | Covidien, Ltd. | 1,365,555 | |||||
10,000 | Darden Restaurants, Inc. | 325,500 | |||||
12,775 | Eli Lilly & Company | 659,062 | |||||
172,290 | * | EMC Corporation | 2,470,639 | ||||
28,020 | EOG Resources, Inc. | 3,362,400 | |||||
40,190 | Exelon Corporation | 3,266,241 | |||||
40,935 | ExxonMobil Corporation | 3,462,282 | |||||
4,000 | Franklin Resources, Inc. | 387,960 | |||||
37,110 | Freeport-McMoRan Copper & Gold, Inc. | 3,570,724 | |||||
29,005 | Gap, Inc. | 570,818 | |||||
23,735 | * | Genentech, Inc. | 1,926,807 | ||||
114,645 | General Electric Company | 4,243,011 | |||||
9,400 | * | Genzyme Corporation | 700,676 | ||||
2,865 | * | Google, Inc. – Class "A" | 1,261,947 | ||||
22,500 | Graco, Inc. | 815,850 | |||||
64 |
Shares | Security | Value | |||||
United States (continued) | |||||||
19,000 | * | Gymboree Corporation | $ | 757,720 | |||
18,081 | Halliburton Company | 711,126 | |||||
63,200 | * | Hercules Offshore, Inc. | 1,587,584 | ||||
1,600 | Hess Corporation | 141,088 | |||||
64,130 | Hewlett-Packard Company | 2,928,176 | |||||
2,000 | International Business Machines Corporation | 230,280 | |||||
203,884 | Invesco PLC | 4,966,614 | |||||
13,565 | * | Iron Mountain, Inc. | 358,659 | ||||
25,660 | JPMorgan Chase & Company | 1,102,097 | |||||
50,135 | * | Kohl’s Corporation | 2,150,290 | ||||
10,805 | Lockheed Martin Corporation | 1,072,936 | |||||
43,505 | Manpower, Inc. | 2,447,591 | |||||
37,720 | Medtronic, Inc. | 1,824,516 | |||||
6,900 | * | MEMC Electronic Materials, Inc. | 489,210 | ||||
24,500 | Merck & Company, Inc. | 929,775 | |||||
13,600 | Merrill Lynch & Company, Inc. | 554,064 | |||||
122,565 | Microsoft Corporation | 3,478,395 | |||||
15,900 | NIKE, Inc. – Class "B" | 1,081,200 | |||||
17,900 | Northrop Grumman Corporation | 1,392,799 | |||||
107,920 | * | Oracle Corporation | 2,110,915 | ||||
14,700 | Oshkosh Truck Corporation | 533,316 | |||||
43,295 | PepsiCo, Inc. | 3,125,899 | |||||
25,290 | * | Philip Morris International, Inc. | 1,279,168 | ||||
35,415 | PNC Financial Services Group, Inc. | 2,322,162 | |||||
14,000 | Precision Castparts Corporation | 1,429,120 | |||||
5,300 | * | Priceline.com, Inc. | 640,558 | ||||
30,960 | Procter & Gamble Company | 2,169,367 | |||||
37,110 | QUALCOMM, Inc. | 1,521,510 | |||||
46,510 | Schering-Plough Corporation | 670,209 | |||||
14,600 | Schlumberger, Ltd. | 1,270,200 | |||||
17,200 | St. Mary Land & Exploration Company | 662,200 | |||||
17,100 | * | St. Jude Medical, Inc. | 738,549 | ||||
69,190 | Staples, Inc. | 1,529,791 | |||||
18,480 | State Street Corporation | 1,459,920 | |||||
15,800 | * | Terex Corporation | 987,500 | ||||
45,060 | * | Thomas & Betts Corporation | 1,638,832 | ||||
19,528 | Transocean, Inc. | 2,640,186 | |||||
4,700 | Union Pacific Corporation | 589,286 | |||||
5,395 | United States Steel Corporation | 684,464 | |||||
10,585 | United Technologies Corporation | 728,460 | |||||
44,885 | UnitedHealth Group, Inc. | 1,542,249 | |||||
65 |
Portfolio of Investments (continued) | |||||||
GLOBAL FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
United States (continued) | |||||||
26,535 | * | Viacom, Inc. – Class "B" | $ | 1,051,317 | |||
30,200 | W.R. Berkley Corporation | 836,238 | |||||
43,465 | Wachovia Corporation | 1,173,555 | |||||
39,055 | Wal-Mart Stores, Inc. | 2,057,417 | |||||
15,700 | * | Waters Corporation | 874,490 | ||||
20,200 | * | WellPoint, Inc. | 891,426 | ||||
16,310 | Williams Companies, Inc. | 537,904 | |||||
129,814,272 | |||||||
United Kingdom—8.4% | |||||||
80,561 | BG Group PLC | 1,868,559 | |||||
36,857 | Johnson Matthey PLC | 1,468,742 | |||||
62,387 | Man Group PLC | 687,554 | |||||
50,745 | Reckitt Benckiser PLC | 2,814,908 | |||||
129,845 | SABMiller PLC | 2,849,085 | |||||
151,027 | Smith & Nephew PLC | 2,000,626 | |||||
9,575 | Smith & Nephew PLC (ADR) | 631,854 | |||||
102,164 | Standard Chartered PLC | 3,496,570 | |||||
882,719 | Vodafone Group PLC | 2,647,420 | |||||
108,117 | Xstrata PLC | 7,578,977 | |||||
26,044,295 | |||||||
Germany—6.0% | |||||||
12,537 | Allianz AG | 2,498,699 | |||||
26,230 | Continental AG | 2,704,505 | |||||
36,249 | Daimler AG – Registered | 3,114,902 | |||||
17,435 | Deutsche Boerse AG | 2,836,444 | |||||
19,590 | Deutsche Postbank AG | 1,882,669 | |||||
16,172 | E.ON AG | 3,028,935 | |||||
21,808 | Siemens AG | 2,390,936 | |||||
18,457,090 | |||||||
France—5.4% | |||||||
50,039 | Axa | 1,822,873 | |||||
19,781 | BNP Paribas SA | 2,002,580 | |||||
22,050 | Bouygues SA | 1,405,967 | |||||
39,963 | Essilor International SA | 2,620,971 | |||||
86,014 | France Telecom SA | 2,903,070 | |||||
66 |
Shares | Security | Value | |||||
France (continued) | |||||||
31,663 | Sanofi-Aventis | $ | 2,384,170 | ||||
12,451 | Schneider Electric SA | 1,617,018 | |||||
28,479 | Veolia Environment | 1,992,794 | |||||
16,749,443 | |||||||
Japan—5.1% | |||||||
65,250 | Canon, Inc. | 3,008,967 | |||||
38,700 | Honda Motor Company, Ltd. | 1,106,159 | |||||
1,059 | Japan Tobacco, Inc. | 5,309,097 | |||||
64,000 | Mitsubishi Estate Company, Ltd. | 1,556,036 | |||||
179,000 | Mitsui & Co., Ltd. | 3,632,692 | |||||
172,000 | Toshiba Corporation | 1,150,872 | |||||
15,763,823 | |||||||
Switzerland—4.4% | |||||||
15,700 | ABB, Ltd. (ADR) | 422,644 | |||||
75,250 | ABB, Ltd. – Registered | 2,028,376 | |||||
52,436 | Julius Baer Holding, Ltd. AG – Registered | 3,880,810 | |||||
10,553 | Nestle SA – Registered | 5,294,905 | |||||
12,629 | Synthes, Inc. | 1,773,589 | |||||
13,400,324 | |||||||
Netherlands—3.8% | |||||||
29,227 | ArcelorMittal | 2,403,126 | |||||
105,572 | * | ASML Holding NV | 2,606,303 | ||||
70,225 | Koninklijke (Royal) Philips Electronics NV | 2,696,211 | |||||
116,223 | Unilever NV | 3,917,133 | |||||
11,622,773 | |||||||
Brazil—3.4% | |||||||
103,300 | All America Latina Logistica | 1,039,794 | |||||
24,400 | Banco Itau Holding Financeira SA (ADR) | 555,344 | |||||
104,000 | Bolsa de Mercadorias e Futuros | 940,372 | |||||
68,970 | Companhia Vale do Rio Doce (ADR) | 2,389,121 | |||||
4,100 | * | MMX Mineracao e Metalicos SA | 2,215,899 | ||||
31,800 | Petroleo Brasileiro SA (ADR) | 3,247,098 | |||||
10,387,628 | |||||||
67 |
Portfolio of Investments (continued) | |||||||
GLOBAL FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
Canada—3.0% | |||||||
24,500 | Canadian Imperial Bank of Commerce | $ | 1,578,096 | ||||
59,400 | Canadian Natural Resources, Ltd. | 4,066,907 | |||||
44,200 | EnCana Corporation | 3,363,516 | |||||
1,815 | * | Research in Motion, Ltd. | 203,697 | ||||
9,212,216 | |||||||
China—1.9% | |||||||
2,926,000 | Bank of China, Ltd. | 1,248,170 | |||||
662,000 | China Communications Construction Company, Ltd. | 1,463,012 | |||||
372,500 | China Merchants Bank Company, Ltd. | 1,289,871 | |||||
7,200 | PetroChina Company, Ltd. (ADR) | 902,232 | |||||
1,458,000 | Shanghai Electric Group Company, Ltd. | 889,841 | |||||
4,400 | * | Suntech Power Holdings Company, Ltd. (ADR) | 178,464 | ||||
5,971,590 | |||||||
Finland—1.7% | |||||||
20,600 | Nokia Corporation – Class "A" (ADR) | 655,698 | |||||
148,275 | Nokia OYJ | 4,708,411 | |||||
5,364,109 | |||||||
Norway—1.6% | |||||||
56,750 | Aker Kvaerner ASA | 1,295,420 | |||||
85,300 | Norsk Hydro ASA | 1,245,488 | |||||
118,000 | Telenor ASA | 2,263,984 | |||||
4,804,892 | |||||||
Spain—1.5% | |||||||
171,378 | Banco Santander SA | 3,427,071 | |||||
179,995 | * | Iberdrola Removables | 1,257,789 | ||||
4,684,860 | |||||||
Italy—1.0% | |||||||
106,471 | Bulgari SpA | 1,234,955 | |||||
285,456 | UniCredito Italiano SpA | 1,917,846 | |||||
3,152,801 | |||||||
68 |
Shares | Security | Value | |||||
Ireland—.9% | |||||||
41,900 | * | Elan Corporation PLC (ADR) | $ | 874,034 | |||
67,900 | * | Ryanair Holdings PLC (ADR) | 1,920,212 | ||||
2,794,246 | |||||||
South Africa—.8% | |||||||
38,637 | Impala Platinum Holdings, Ltd. | 1,488,141 | |||||
73,314 | MTN Group, Ltd. | 1,109,656 | |||||
2,597,797 | |||||||
Hong Kong—.8% | |||||||
910,888 | Shangri-La Asia, Ltd. | 2,457,795 | |||||
Sweden—.7% | |||||||
128,200 | Sandvik AB | 2,232,169 | |||||
Austria—.7% | |||||||
32,206 | OMV AG | 2,136,214 | |||||
Mexico—.7% | |||||||
17,200 | America Movil SAB de CV (ADR) – Series "L" | 1,095,468 | |||||
41,700 | Grupo Aeroportuario del Centro Norte SA de CV (ADR) | 929,910 | |||||
2,025,378 | |||||||
Israel—.6% | |||||||
41,500 | Teva Pharmaceutical Industries, Ltd. (ADR) | 1,916,885 | |||||
Australia—.6% | |||||||
346,596 | * | Lihir Gold, Ltd. | 1,135,841 | ||||
10,300 | * | Lihir Gold, Ltd. (ADR) | 327,746 | ||||
7,200 | Woodside Petroleum, Ltd. (ADR) | 358,202 | |||||
1,821,789 | |||||||
Egypt—.6% | |||||||
26,100 | Orascom Telecom Holding SAE (GDR) | 1,774,800 | |||||
Denmark—.5% | |||||||
21,775 | Novo Nordisk A/S – Series "B" | 1,494,465 | |||||
69 |
Portfolio of Investments (continued) | |||||||
GLOBAL FUND | |||||||
March 31, 2008 | |||||||
Shares or | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Russia—.4% | |||||||
11,250 | Evraz Group SA (GDR) | $ | 970,875 | ||||
11,000 | TMK OAO (GDR) (a) | 357,500 | |||||
1,328,375 | |||||||
India—.3% | |||||||
26,700 | Infosys Technologies, Ltd. (ADR) | 955,059 | |||||
South Korea—.2% | |||||||
5,247 | LG Electronics, Inc. | 672,862 | |||||
Belgium—.2% | |||||||
14,284 | UCB SA | 498,058 | |||||
Total Value of Common Stocks (cost $273,161,421) | 300,136,008 | ||||||
REPURCHASE AGREEMENT—2.6% | |||||||
$8,110 | M | UBS Securities, 1.35%, dated 3/31/08, to be repurchased | |||||
at $8,110,304 on 4/1/08 (collaterized by U.S. Treasury | |||||||
Bonds, 6.875%, 8/15/2025, valued at $8,279,151) | |||||||
(cost $8,110,000) | 8,110,000 | ||||||
Total Value of Investments (cost $281,271,421) | 99.9 | % | 308,246,008 | ||||
Other Assets, Less Liabilities | .1 | 242,236 | |||||
Net Assets | 100.0 | % | $ | 308,488,244 | |||
* Non-income producing | |||||||
(a) Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 4). | |||||||
Summary of Abbreviations: | |||||||
ADR | American Depositary Receipts | ||||||
GDR | Global Depositary Receipts | ||||||
REIT | Real Estate Investment Trust | ||||||
70 | See notes to financial statements |
Fund Expenses | |||
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 4 for | |||
a detailed explanation of the information presented in these examples. | |||
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/07) | (3/31/08) | (10/1/07-3/31/08)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $853.85 | $6.72 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,017.75 | $7.31 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $850.00 | $9.94 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,014.25 | $10.83 |
* Expenses are equal to the annualized expense ratio of 1.45% for Class A shares and 2.15% for | |||
Class B shares, multiplied by the average account value over the period, multiplied by 183/366 | |||
(to reflect the one-half year period). | |||
Portfolio Composition | |||
BY SECTOR |
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/equityincomex73x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2008, and |
are based on the total market value of investments. |
; 71 |
Portfolio of Investments | |||||||
SELECT GROWTH FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
COMMON STOCKS—96.9% | |||||||
Consumer Discretionary—9.4% | |||||||
238,000 | * | Aeropostale, Inc. | $ | 6,452,180 | |||
145,400 | * | Fossil, Inc. | 4,440,516 | ||||
178,100 | Guess?, Inc. | 7,207,707 | |||||
110,400 | Omnicom Group, Inc. | 4,877,472 | |||||
22,977,875 | |||||||
Consumer Staples—9.0% | |||||||
115,400 | Church & Dwight Company, Inc. | 6,259,296 | |||||
120,650 | Colgate-Palmolive Company | 9,399,842 | |||||
87,400 | PepsiCo, Inc. | 6,310,280 | |||||
21,969,418 | |||||||
Energy—8.5% | |||||||
54,400 | ExxonMobil Corporation | 4,601,152 | |||||
85,000 | Marathon Oil Corporation | 3,876,000 | |||||
101,800 | * | National-Oilwell Varco, Inc. | 5,943,084 | ||||
86,600 | Occidental Petroleum Corporation | 6,336,522 | |||||
20,756,758 | |||||||
Financials—8.3% | |||||||
100,660 | Bank of New York Mellon Corporation | 4,200,542 | |||||
154,800 | * | Nasdaq OMX Group, Inc. | 5,984,568 | ||||
68,600 | Northern Trust Corporation | 4,559,842 | |||||
251,100 | Unum Group | 5,526,711 | |||||
20,271,663 | |||||||
Health Care—18.8% | |||||||
156,475 | Applera Corporation – Applied Biosystems Group | 3,383,538 | |||||
90,400 | Becton, Dickinson & Company | 4,972,870 | |||||
83,400 | Cigna Corporation | 5,141,768 | |||||
112,600 | * | Express Scripts, Inc. | 5,166,452 | ||||
122,100 | * | Gilead Sciences, Inc. | 6,072,370 | ||||
133,000 | * | OSI Pharmaceuticals, Inc. | 6,291,813 | ||||
189,600 | Perrigo Company | 7,153,608 | |||||
110,300 | * | Varian Medical Systems, Inc. | 7,760,840 | ||||
45,943,259 | |||||||
72 |
Shares or | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Industrials—12.7% | |||||||
81,100 | Danaher Corporation | $ | 6,166,033 | ||||
80,900 | * | Jacobs Engineering Group, Inc. | 5,953,431 | ||||
170,260 | Manitowoc Company, Inc. | 6,946,608 | |||||
61,100 | Northrop Grumman Corporation | 4,754,191 | |||||
44,215 | Republic Services, Inc. | 1,292,847 | |||||
86,000 | United Technologies Corporation | 5,918,520 | |||||
31,031,630 | |||||||
Information Technology—24.9% | |||||||
122,470 | Amphenol Corporation – Class "A" | 4,562,007 | |||||
181,700 | * | BMC Software, Inc. | 5,908,884 | ||||
95,000 | FactSet Research Systems, Inc. | 5,117,650 | |||||
138,600 | Harris Corporation | 6,726,258 | |||||
152,300 | Hewlett-Packard Company | 6,954,018 | |||||
56,000 | International Business Machines Corporation | 6,447,840 | |||||
237,600 | Microsoft Corporation | 6,743,088 | |||||
407,000 | * | Oracle Corporation | 7,960,920 | ||||
365,000 | * | Parametric Technology Corporation | 5,832,700 | ||||
157,500 | Texas Instruments, Inc. | 4,452,525 | |||||
60,705,890 | |||||||
Materials—3.0% | |||||||
101,800 | Sigma-Aldrich Corporation | 7,242,432 | |||||
Telecommunication Services—2.3% | |||||||
149,100 | AT&T, Inc. | 5,710,530 | |||||
Total Value of Common Stocks (cost $234,683,026) | 236,609,455 | ||||||
SHORT-TERM CORPORATE NOTES—3.0% | |||||||
$7,300 | M | PepsiCo, Inc., 2.15%, 4/23/08 (cost $7,290,406) (a) | 7,290,406 | ||||
Total Value of Investments (cost $241,973,432) | 99.9 | % | 243,899,861 | ||||
Other Assets, Less Liabilities | .1 | 123,196 | |||||
Net Assets | 100.0 | % | $ | 244,023,057 | |||
* Non-income producing | |||||||
(a) Security exempt from registration under Section 4(2) of the Securities Act of 1933 (see Note 4). | |||||||
See notes to financial statements | 73 |
Fund Expenses | |||
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 4 for | |||
a detailed explanation of the information presented in these examples. | |||
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/07) | (3/31/08) | (10/1/07-3/31/08)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $892.25 | $6.58 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,018.05 | $7.01 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $889.12 | $9.87 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,014.55 | $10.53 |
* Expenses are equal to the annualized expense ratio of 1.39% for Class A shares and 2.09% for | |||
Class B shares, multiplied by the average account value over the period, multiplied by 183/366 | |||
(to reflect the one-half year period). | |||
Portfolio Composition | |||
TOP TEN SECTORS |
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/equityincomex76x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2008, and |
are based on the total market value of investments. |
74 |
Portfolio of Investments | |||||||
OPPORTUNITY FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
COMMON STOCKS—97.9% | |||||||
Consumer Discretionary—13.0% | |||||||
185,000 | BorgWarner, Inc. | $ | 7,960,550 | ||||
220,000 | Brown Shoe Company, Inc. | 3,315,400 | |||||
45,000 | * | CEC Entertainment, Inc. | 1,299,600 | ||||
225,000 | Cinemark Holdings, Inc. | 2,877,750 | |||||
150,000 | * | Coach, Inc. | 4,522,500 | ||||
73,000 | Gannett Company, Inc. | 2,120,650 | |||||
210,000 | * | Morgans Hotel Group Company | 3,112,200 | ||||
170,000 | Movado Group, Inc. | 3,313,300 | |||||
135,000 | Nordstrom, Inc. | 4,401,000 | |||||
65,000 | Polo Ralph Lauren Corporation – Class "A" | 3,788,850 | |||||
122,500 | * | Red Robin Gourmet Burgers, Inc. | 4,602,325 | ||||
117,500 | Tiffany & Company | 4,916,200 | |||||
250,000 | * | Warnaco Group, Inc. | 9,860,000 | ||||
126,000 | Wolverine World Wide, Inc. | 3,655,260 | |||||
59,745,585 | |||||||
Consumer Staples—5.9% | |||||||
50,000 | Altria Group, Inc. | 1,110,000 | |||||
167,500 | Dean Foods Company | 3,365,075 | |||||
100,000 | Kraft Foods, Inc. – Class "A" | 3,101,000 | |||||
320,000 | Nu Skin Enterprises, Inc. – Class "A" | 5,766,400 | |||||
50,000 | * | Philip Morris International, Inc. | 2,529,000 | ||||
132,500 | Safeway, Inc. | 3,888,875 | |||||
325,000 | Sara Lee Corporation | 4,543,500 | |||||
119,480 | Tootsie Roll Industries, Inc. | 3,010,896 | |||||
27,314,746 | |||||||
Energy—10.8% | |||||||
280,000 | * | Cal Dive International, Inc. | 2,906,400 | ||||
70,000 | Chesapeake Energy Corporation | 3,230,500 | |||||
50,000 | EOG Resources, Inc. | 6,000,000 | |||||
85,000 | * | Grant Prideco, Inc. | 4,183,700 | ||||
71,000 | Hess Corporation | 6,260,780 | |||||
85,000 | * | Plains Exploration & Production Company | 4,516,900 | ||||
50,000 | * | Swift Energy Company | 2,249,500 | ||||
200,000 | Talisman Energy, Inc. | 3,540,000 | |||||
75 |
Portfolio of Investments (continued) | |||||||
OPPORTUNITY FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
Energy (continued) | |||||||
51,769 | * | Transocean, Inc. | $ | 6,999,169 | |||
70,000 | * | Weatherford International, Ltd. | 5,072,900 | ||||
75,000 | XTO Energy, Inc. | 4,639,500 | |||||
49,599,349 | |||||||
Financials—10.6% | |||||||
75,000 | City National Corporation | 3,709,500 | |||||
222,500 | Colonial BancGroup, Inc. | 2,142,675 | |||||
160,000 | Discover Financial Services | 2,619,200 | |||||
150,000 | Douglas Emmett, Inc. (REIT) | 3,309,000 | |||||
32,500 | Federal Realty Investment Trust (REIT) | 2,533,375 | |||||
95,000 | HCP, Inc. (REIT) | 3,211,950 | |||||
132,000 | Lazard, Ltd. – Class "A" | 5,042,400 | |||||
125,000 | * | Nasdaq OMX Group, Inc. | 4,832,500 | ||||
220,000 | NewAlliance Bancshares, Inc. | 2,697,200 | |||||
105,000 | Protective Life Corporation | 4,258,800 | |||||
230,000 | Sovereign Bancorp, Inc. | 2,143,600 | |||||
180,000 | Sunstone Hotel Investors, Inc. (REIT) | 2,881,800 | |||||
200,000 | Waddell & Reed Financial, Inc. – Class "A" | 6,426,000 | |||||
71,000 | Zions Bancorporation | 3,234,050 | |||||
49,042,050 | |||||||
Health Care—14.3% | |||||||
107,500 | * | Barr Pharmaceuticals, Inc. | 5,193,325 | ||||
70,000 | Beckman Coulter, Inc. | 4,518,500 | |||||
125,000 | * | Community Health Systems, Inc. | 4,196,250 | ||||
165,000 | DENTSPLY International, Inc. | 6,369,000 | |||||
380,000 | * | Exelixis, Inc. | 2,641,000 | ||||
97,500 | * | Express Scripts, Inc. | 6,271,200 | ||||
150,000 | * | Gilead Sciences, Inc. | 7,729,500 | ||||
75,000 | * | Laboratory Corporation of America Holdings | 5,526,000 | ||||
100,000 | McKesson Corporation | 5,237,000 | |||||
150,000 | * | Psychiatric Solutions, Inc. | 5,088,000 | ||||
120,000 | * | St. Jude Medical, Inc. | 5,182,800 | ||||
137,000 | * | Thermo Fisher Scientific, Inc. | 7,787,080 | ||||
65,739,655 | |||||||
76 |
Shares | Security | Value | |||||
Industrials—18.1% | |||||||
205,000 | * | AAR Corporation | $ | 5,590,350 | |||
110,000 | Armstrong World Industries, Inc. | 3,922,600 | |||||
125,000 | Avery Dennison Corporation | 6,156,250 | |||||
142,500 | Baldor Electric Company | 3,990,000 | |||||
172,500 | Chicago Bridge & Iron Company NV – NY Shares | 6,768,900 | |||||
107,500 | Dover Corporation | 4,491,350 | |||||
115,000 | Harsco Corporation | 6,368,700 | |||||
200,000 | IDEX Corporation | 6,138,000 | |||||
160,000 | J.B. Hunt Transport Services, Inc. | 5,028,800 | |||||
40,000 | L-3 Communications Holdings, Inc. | 4,373,600 | |||||
78,000 | Manpower, Inc. | 4,388,280 | |||||
262,962 | * | Mobile Mini, Inc. | 4,996,278 | ||||
65,500 | Northrop Grumman Corporation | 5,096,555 | |||||
37,000 | Precision Castparts Corporation | 3,776,960 | |||||
50,000 | Regal-Beloit Corporation | 1,831,500 | |||||
95,000 | Rolls-Royce Group PLC (ADR) | 3,804,608 | |||||
108,000 | Roper Industries, Inc. | 6,419,520 | |||||
83,142,251 | |||||||
Information Technology—9.6% | |||||||
225,000 | * | Cadence Design Systems, Inc. | 2,403,000 | ||||
65,000 | * | DST Systems, Inc. | 4,273,100 | ||||
150,000 | * | Electronics for Imaging, Inc. | 2,238,000 | ||||
145,000 | Harris Corporation | 7,036,850 | |||||
150,000 | * | Ingram Micro, Inc. – Class "A" | 2,374,500 | ||||
160,000 | Intersil Corporation – Class "A" | 4,107,200 | |||||
175,000 | * | Intuit, Inc. | 4,726,750 | ||||
235,000 | * | Macrovision Corporation | 3,172,500 | ||||
175,000 | * | Open Text Corporation | 5,479,250 | ||||
255,000 | * | Sybase, Inc. | 6,706,500 | ||||
60,000 | * | Varian Semiconductor Equipment Associates, Inc. | 1,689,000 | ||||
44,206,650 | |||||||
Materials—7.5% | |||||||
140,000 | Agrium, Inc. | 8,695,400 | |||||
62,500 | Allegheny Technologies, Inc. | 4,460,000 | |||||
44,000 | Freeport-McMoRan Copper & Gold, Inc. | 4,233,680 | |||||
107,100 | Lubrizol Corporation | 5,945,121 | |||||
77 |
Portfolio of Investments (continued) | |||||||
OPPORTUNITY FUND | |||||||
March 31, 2008 | |||||||
Shares or | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Materials (continued) | |||||||
67,000 | Praxair, Inc. | $ | 5,643,410 | ||||
50,000 | Sappi, Ltd. (ADR) | 574,500 | |||||
80,000 | Sigma-Aldrich Corporation | 4,772,000 | |||||
34,324,111 | |||||||
Telecommunication Services—2.3% | |||||||
235,000 | Citizens Communications Company | 2,465,150 | |||||
215,000 | NTELOS Holdings Corporation | 5,203,000 | |||||
180,000 | * | Time Warner Telecom, Inc. – Class "A" | 2,788,200 | ||||
10,456,350 | |||||||
Utilities—5.8% | |||||||
111,000 | AGL Resources, Inc. | 3,809,520 | |||||
110,000 | California Water Service Group | 4,196,500 | |||||
100,000 | Equitable Resources, Inc. | 5,890,000 | |||||
135,000 | Portland General Electric Company | 3,044,250 | |||||
125,000 | SCANA Corporation | 4,572,500 | |||||
120,000 | Wisconsin Energy Corporation | 5,278,800 | |||||
26,791,570 | |||||||
Total Value of Common Stocks (cost $379,303,972) | 450,362,317 | ||||||
SHORT-TERM CORPORATE NOTES—1.3% | |||||||
$3,400 | M | General Electric Capital Corp., 2.3%, 4/10/08 | 3,398,044 | ||||
2,800 | M | PepsiCo, Inc., 2.15%, 4/23/08 (a) | 2,796,320 | ||||
Total Value of Short-Term Corporate Notes (cost $6,194,364) | 6,194,364 | ||||||
Total Value of Investments (cost $385,498,336) | 99.2 | % | 456,556,681 | ||||
Other Assets, Less Liabilities | .8 | 3,620,118 | |||||
Net Assets | 100.0 | % | $ | 460,176,799 | |||
* Non-income producing | |||||||
(a) Security exempt from registration under Section 4(2) of the Securities Act of 1933 (see Note 4). | |||||||
Summary of Abbreviations: | |||||||
ADR American Depositary Receipts | |||||||
REIT Real Estate Investment Trust | |||||||
78 | See notes to financial statements |
Fund Expenses | |||
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 4 for | |||
a detailed explanation of the information presented in these examples. | |||
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/07) | (3/31/08) | (10/1/07-3/31/08)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $897.10 | $7.11 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,017.50 | $7.57 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $894.17 | $10.42 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,014.00 | $11.08 |
* Expenses are equal to the annualized expense ratio of 1.50% for Class A shares and 2.20% for | |||
Class B shares, multiplied by the average account value over the period, multiplied by 183/366 | |||
(to reflect the one-half year period). Expenses paid during the period are net of expenses waived. | |||
Portfolio Composition | |||
TOP TEN SECTORS |
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/equityincomex81x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2008, and |
are based on the total market value of investments. |
79 |
Portfolio of Investments | |||||||
SPECIAL SITUATIONS FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
COMMON STOCKS—92.8% | |||||||
Consumer Discretionary—8.3% | |||||||
124,900 | * | AnnTaylor Stores Corporation | $ | 3,020,082 | |||
193,000 | Interactive Data Corporation | 5,494,710 | |||||
218,200 | Penske Automotive Group, Inc. | 4,246,172 | |||||
179,100 | PetSmart, Inc. | 3,660,804 | |||||
115,900 | Phillips-Van Heusen Corporation | 4,394,928 | |||||
209,600 | Tempur-Pedic International, Inc. | 2,305,600 | |||||
23,122,296 | |||||||
Consumer Staples—7.8% | |||||||
108,250 | Church & Dwight Company, Inc. | 5,871,480 | |||||
231,100 | Flower Foods, Inc. | 5,719,725 | |||||
130,400 | Hormel Foods Corporation | 5,432,464 | |||||
91,100 | J. M. Smucker Company | 4,610,571 | |||||
21,634,240 | |||||||
Energy—6.4% | |||||||
200,600 | * | Denbury Resources, Inc. | 5,727,130 | ||||
111,600 | * | Plains Exploration & Production Company | 5,930,424 | ||||
94,700 | * | Whiting Petroleum Corporation | 6,122,355 | ||||
17,779,909 | |||||||
Financials—16.2% | |||||||
15,914 | * | Alleghany Corporation | 5,434,645 | ||||
161,900 | American Financial Group, Inc. | 4,138,164 | |||||
789,600 | Anworth Mortgage Asset Corporation | 4,840,248 | |||||
170,900 | Arthur J. Gallagher & Company | 4,036,658 | |||||
134,700 | FirstMerit Corporation | 2,782,902 | |||||
141,500 | Harleysville Group, Inc. | 5,106,735 | |||||
582,500 | MFA Mortgage Investments, Inc. | 3,669,750 | |||||
108,100 | Midland Company | 7,018,933 | |||||
370,700 | Phoenix Companies, Inc. | 4,526,247 | |||||
115,900 | Wilmington Trust Corporation | 3,604,490 | |||||
45,158,772 | |||||||
80 |
Shares | Security | Value | |||||
Health Care—12.7% | |||||||
83,800 | Hillenbrand Industries, Inc. | $ | 4,005,640 | ||||
68,000 | * | Invitrogen Corporation | 5,811,960 | ||||
158,500 | * | K-V Pharmaceutical Company – Class "A" | 3,956,160 | ||||
143,800 | * | Lincare Holdings, Inc. | 4,042,218 | ||||
132,700 | * | Magellan Health Services, Inc. | 5,266,863 | ||||
100,052 | PerkinElmer, Inc. | 2,426,261 | |||||
180,600 | STERIS Corporation | 4,845,498 | |||||
113,500 | West Pharmaceutical Services, Inc. | 5,020,105 | |||||
35,374,705 | |||||||
Industrials—18.5% | |||||||
92,500 | Alexander & Baldwin, Inc. | 3,984,900 | |||||
43,200 | * | Alliant Techsystems, Inc. | 4,472,496 | ||||
134,300 | Carlisle Companies, Inc. | 4,490,992 | |||||
107,100 | CLARCOR, Inc. | 3,807,405 | |||||
132,200 | Curtiss-Wright Corporation | 5,483,656 | |||||
187,000 | Deluxe Corporation | 3,592,270 | |||||
158,800 | * | Kansas City Southern, Inc. | 6,369,468 | ||||
170,500 | Pentair, Inc. | 5,438,950 | |||||
144,800 | Robbins & Myers, Inc. | 4,727,720 | |||||
256,700 | * | TrueBlue, Inc. | 3,450,048 | ||||
214,800 | Woodward Governor Company | 5,739,456 | |||||
51,557,361 | |||||||
Information Technology—11.5% | |||||||
128,850 | * | Avnet, Inc. | 4,217,260 | ||||
314,500 | AVX Corporation | 4,028,745 | |||||
96,800 | * | Cabot Microelectronics Corporation | 3,112,120 | ||||
215,200 | * | Checkpoint Systems, Inc. | 5,778,120 | ||||
290,400 | * | Convergys Corporation | 4,373,424 | ||||
232,300 | * | Epicor Software Corporation | 2,601,760 | ||||
156,400 | * | Sybase, Inc. | 4,113,320 | ||||
135,300 | * | Varian Semiconductor Equipment Associates, Inc. | 3,808,695 | ||||
32,033,444 | |||||||
81 |
Portfolio of Investments (continued) | |||||||
SPECIAL SITUATIONS FUND | |||||||
March 31, 2008 | |||||||
Shares or | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Materials—2.6% | |||||||
109,000 | AptarGroup, Inc. | 4,243,370 | |||||
68,200 | * | RTI International Metals, Inc. | 3,083,322 | ||||
7,326,692 | |||||||
Telecommunication Services—3.3% | |||||||
382,700 | * | Premiere Global Services, Inc. | 5,487,918 | ||||
102,675 | Telephone & Data Systems, Inc. – Special Shares | 3,829,777 | |||||
9,317,695 | |||||||
Utilities—5.5% | |||||||
264,700 | CMS Energy Corporation | 3,584,038 | |||||
�� 432,000 | * | Dynegy, Inc. – Class "A" | 3,408,480 | ||||
177,200 | Energy East Corporation | 4,274,064 | |||||
184,800 | Portland General Electric Company | 4,167,240 | |||||
15,433,822 | |||||||
Total Value of Common Stocks (cost $239,253,635) | 258,738,936 | ||||||
SHORT-TERM CORPORATE NOTES—7.2% | |||||||
$9,000 | M | General Electric Capital Corp., 2.25%, 4/23/08 | 8,987,621 | ||||
4,700 | M | Madison Gas & Electric Co., 2.35%, 4/11/08 | 4,696,932 | ||||
6,500 | M | PepsiCo, Inc., 2.54%, 4/10/08 (a) | 6,495,867 | ||||
Total Value of Short-Term Corporate Notes (cost $20,180,420) | 20,180,420 | ||||||
Total Value of Investments (cost $259,434,055) | 100.0 | % | 278,919,356 | ||||
Excess of Liabilities Over Other Assets | — | (156,336) | |||||
Net Assets | 100.0 | % | $ | 278,763,020 | |||
* Non-income producing | |||||||
(a) Security exempt from registration under Section 4(2) of the Securities Act of 1933 (see Note 4). | |||||||
82 | See notes to financial statements |
Fund Expenses | |||
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 4 for | |||
a detailed explanation of the information presented in these examples. | |||
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/07) | (3/31/08) | (10/1/07-3/31/08)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $922.67 | $9.61 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,015.00 | $10.08 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $918.90 | $12.95 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,011.50 | $13.58 |
* Expenses are equal to the annualized expense ratio of 2.00% for Class A shares and 2.70% for | |||
Class B shares, multiplied by the average account value over the period, multiplied by 183/366 | |||
(to reflect the one-half year period). | |||
Portfolio Composition | |||
BY SECTOR |
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/equityincomex85x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2008, and |
are based on the total market value of investments. |
83 |
Portfolio of Investments | |||||||
INTERNATIONAL FUND | |||||||
March 31, 2008 | |||||||
Shares | Security | Value | |||||
COMMON STOCKS—83.8% | |||||||
United Kingdom—17.0% | |||||||
194,009 | British American Tobacco PLC | $ | 7,291,629 | ||||
76,300 | Diageo PLC | 1,540,740 | |||||
66,779 | Imperial Tobacco Group PLC | 3,076,554 | |||||
50,481 | Reckitt Benckiser Group PLC | 2,800,264 | |||||
106,720 | SABMiller PLC | 2,341,672 | |||||
513,545 | Tesco PLC | 3,868,378 | |||||
20,919,237 | |||||||
Switzerland—10.4% | |||||||
18,357 | Kuehne & Nagel International AG – Registered | 1,843,959 | |||||
266 | Lindt & Spruengli AG | 887,518 | |||||
10,775 | Nestle SA – Registered | 5,406,293 | |||||
25,100 | Novartis AG – Registered | 1,291,734 | |||||
18,138 | Roche Holding AG – Genusscheine | 3,427,524 | |||||
12,857,028 | |||||||
Japan—5.8% | |||||||
325 | Japan Tobacco, Inc. | 1,629,326 | |||||
72,950 | Millea Holdings, Inc. | 2,697,102 | |||||
58,200 | Secom Company, Ltd. | 2,830,040 | |||||
7,156,468 | |||||||
Germany—5.6% | |||||||
32,000 | Deutsche Boerse AG | 5,205,977 | |||||
14,000 | RWE AG | 1,735,664 | |||||
6,941,641 | |||||||
Brazil—4.5% | |||||||
58,000 | Banco Itau Holding Financeira SA (ADR) | 1,320,080 | |||||
36,498 | Petroleo Brasileiro SA – Petrobras (ADR) | 3,726,811 | |||||
18,400 | Souza Cruz SA | 476,706 | |||||
5,523,597 | |||||||
Netherlands—4.1% | |||||||
25,725 | * | Core Laboratories NV | 3,068,992 | ||||
59,800 | Unilever NV – CVA | 2,015,475 | |||||
5,084,467 | |||||||
84 |
Shares | Security | Value | |||||
Canada—4.1% | |||||||
54,550 | Canadian Natural Resources, Ltd. | $ | 3,734,845 | ||||
13,800 | Suncor Energy, Inc. | 1,334,204 | |||||
5,069,049 | |||||||
Netherlands Antilles—3.5% | |||||||
1,600 | Schlumberger, Ltd. | 141,241 | |||||
47,450 | Schlumberger, Ltd. (ADR) | 4,128,150 | |||||
4,269,391 | |||||||
Belgium—3.3% | |||||||
46,535 | InBev NV | 4,110,128 | |||||
India—3.0% | |||||||
37,692 | HDFC Bank, Ltd. (ADR) | 3,702,862 | |||||
Mexico—2.8% | |||||||
53,125 | America Movil SAB de CV (ADR) – Series "L" | 3,383,531 | |||||
China—2.7% | |||||||
31,987 | China Mobile, Ltd. | 475,930 | |||||
8,300 | China Mobile, Ltd. (ADR) | 622,583 | |||||
1,490,500 | CNOOC, Ltd. | 2,202,374 | |||||
3,300,887 | |||||||
Hong Kong—2.6% | |||||||
87,000 | Cheung Kong Holdings, Ltd. | 1,235,216 | |||||
62,469 | Jardine Matheson Holdings, Ltd. | 1,972,771 | |||||
3,207,987 | |||||||
France—2.6% | |||||||
11,110 | Air Liquide SA | 1,700,063 | |||||
11,400 | L’Oreal SA | 1,453,067 | |||||
3,153,130 | |||||||
Finland—2.5% | |||||||
98,900 | Nokia Oyj | 3,140,528 | |||||
Spain—2.4% | |||||||
97,070 | Enagas | 2,911,685 | |||||
85 |
Portfolio of Investments (continued) | |||||||
INTERNATIONAL FUND | |||||||
March 31, 2008 | |||||||
Shares or | |||||||
Warrants | Security | Value | |||||
Norway—2.2% | |||||||
210,385 | Orkla ASA | $ | 2,670,307 | ||||
Australia—1.7% | |||||||
16,800 | BHP Billiton, Ltd. | 549,178 | |||||
51,322 | WorleyParsons, Ltd. | 1,568,046 | |||||
2,117,224 | |||||||
Denmark—1.1% | |||||||
19,200 | Novo Nordisk A/S – Series "B" | 1,317,737 | |||||
Singapore—1.0% | |||||||
179,000 | Keppel Corporation, Ltd. | 1,285,854 | |||||
Italy—.9% | |||||||
228,400 | * | Maire Tecnimont SpA | 1,158,123 | ||||
Total Value of Common Stocks (cost $96,868,795) | 103,280,861 | ||||||
WARRANTS—10.4% | |||||||
India | |||||||
21,800 | * | Asea Brown Boveri India, Ltd. (expiring 10/15/12) (a) | 637,912 | ||||
14,800 | Bharat Heavy Electricals, Ltd. (expiring 7/20/10) (a) | 760,424 | |||||
3,700 | * | Bharat Heavy Electricals, Ltd. (expiring 5/12/08) (a) | 189,662 | ||||
138,015 | * | Bharti Tele-Ventures, Ltd. (expiring 5/31/10) (a) | 2,842,281 | ||||
28,421 | HDFC Bank, Ltd. (expiring 6/28/10) (a) | 943,066 | |||||
37,330 | Housing Development Finance Corp., Ltd. (expiring 5/25/09) (a) | 2,217,999 | |||||
10,700 | * | Housing Development Finance Corp., Ltd. (expiring 11/14/11) (a) | 634,681 | ||||
21,146 | * | India Infoline, Ltd. (expiring 7/13/12) (a) | 405,919 | ||||
57,470 | * | Infrastructure Development Finance Co., Ltd. (expiring 7/28/10) (a) | 216,317 | ||||
354,700 | * | Infrastructure Development Finance Co., Ltd. (expiring 1/24/13) (a) | 1,338,992 | ||||
245,479 | * | ITC, Ltd. (expiring 5/5/10) (a) | 1,262,008 | ||||
36,000 | * | United Spirits, Ltd. (expiring 6/20/11) (a) | 1,352,520 | ||||
Total Value of Warrants (cost $12,160,050) | 12,801,781 | ||||||
86 |
Principal | |||||||
Amount | Security | Value | |||||
SHORT-TERM CORPORATE NOTES—4.9% | |||||||
United States | |||||||
$6,000 | M | PepsiCo, Inc., 2.15%, 4/23/08 (cost $5,992,114) (b) | $ | 5,992,114 | |||
Total Value of Investments (cost $115,020,959) | 99.1 | % | 122,074,756 | ||||
Other Assets, Less Liabilities | .9 | 1,169,847 | |||||
Net Assets | 100.0 | % | $ | 123,244,603 | |||
* Non-income producing | |||||||
(a) Participatory notes issued by brokers registered in the local market. Securities are valued at fair | |||||||
value (see Note 1A). | |||||||
(b) Security exempt from registration under Section 4(2) of the Securities Act of 1933 (see Note 4). | |||||||
Summary of Abbreviations: | |||||||
ADR American Depositary Receipts | |||||||
See notes to financial statements | 87 |
Statements of Assets and Liabilities | ||||||||||||||
FIRST INVESTORS INCOME FUNDS | ||||||||||||||
March 31, 2008 | ||||||||||||||
CASH | INVESTMENT | |||||||||||||
MANAGEMENT | GOVERNMENT | GRADE | INCOME | |||||||||||
Assets | ||||||||||||||
Investments in securities: | ||||||||||||||
At identified cost | $252,782,884 | $234,226,879 | $303,183,305 | $639,357,252 | ** | |||||||||
At value (Note 1A) | $252,782,884 | $237,022,682 | $302,110,617 | $568,879,981 | ** | |||||||||
Cash | 124,388 | 1,014,282 | 1,392,802 | 799,749 | ||||||||||
Receivables: | ||||||||||||||
Investment Securities sold | — | 4,854,468 | 14,798,117 | 1,958,867 | ||||||||||
Interest and dividends | 630,005 | 1,051,529 | 3,672,467 | 12,279,472 | ||||||||||
Shares sold | — | 651,781 | 1,081,846 | 570,331 | ||||||||||
Other assets | 47,410 | 49,550 | 30,146 | 293,789 | ||||||||||
Total Assets | 253,584,687 | 244,644,292 | 323,085,995 | 584,782,189 | ||||||||||
Liabilities | ||||||||||||||
Payables: | ||||||||||||||
Investment securities purchased | — | 15,290,922 | 5,265,035 | — | ||||||||||
Collateral for securities loaned (Note 1H) | — | — | — | 52,640,202 | ||||||||||
Shares redeemed | 318,868 | 312,822 | 461,711 | 718,792 | ||||||||||
Dividends payable | 49,659 | 90,099 | 153,411 | 716,197 | ||||||||||
Accrued advisory fees | 31,718 | 93,250 | 126,447 | 328,086 | ||||||||||
Accrued shareholder servicing costs | 82,220 | 41,114 | 55,747 | 113,794 | ||||||||||
Accrued expenses | 49,795 | 34,127 | 14,150 | 38,861 | ||||||||||
Total Liabilities | 532,260 | 15,862,334 | 6,076,501 | 54,555,932 | ||||||||||
Net Assets | $253,052,427 | $228,781,958 | $317,009,494 | $530,226,257 | ||||||||||
Net Assets Consist of: | ||||||||||||||
Capital paid in | $253,052,427 | $236,065,236 | $328,381,113 | $765,858,436 | ||||||||||
Undistributed net investment income (deficit) | — | 1,115 | (3,811,997) | 2,242,982 | ||||||||||
Accumulated net realized loss on investments | — | (10,080,196) | (6,486,934) | (167,397,890) | ||||||||||
Net unrealized appreciation (depreciation) in value of investments | — | 2,795,803 | (1,072,688) | (70,477,271) | ||||||||||
Total | $253,052,427 | $228,781,958 | $317,009,494 | $530,226,257 | ||||||||||
Net Assets: | ||||||||||||||
Class A | $249,593,548 | $216,858,498 | $295,360,201 | $510,713,764 | ||||||||||
Class B | $ 3,458,879 | $ 11,923,460 | $ 21,649,293 | $ 19,512,493 | ||||||||||
Shares outstanding (Note 7): | ||||||||||||||
Class A | 249,593,548 | 19,817,680 | 31,191,131 | 187,538,036 | ||||||||||
Class B | 3,458,879 | 1,089,769 | 2,288,854 | 7,173,813 | ||||||||||
Net asset value and redemption price per share — Class A | $1.00 | # | $10.94 | $ 9.47 | $2.72 | |||||||||
Maximum offering price per share — Class A | ||||||||||||||
(Net asset value/.9425)* | N/A | $11.61 | $10.05 | $2.89 | ||||||||||
Net asset value and offering price per share — Class B (Note 7) | $1.00 | $10.94 | $ 9.46 | $2.72 | ||||||||||
# Also maximum offering price per share. | ||||||||||||||
* On purchases of $100,000 or more, the sales charge is reduced. | ||||||||||||||
** Investments at cost and value include $52,640,202 of collateral for securities loaned (Note 1H). | ||||||||||||||
88 | See notes to financial statements | 89 |
Statements of Assets and Liabilities | |||||||||||||||
FIRST INVESTORS EQUITY FUNDS | |||||||||||||||
March 31, 2008 | |||||||||||||||
TOTAL | GROWTH & | ||||||||||||||
RETURN | VALUE | BLUE CHIP | INCOME | GLOBAL | |||||||||||
Assets | |||||||||||||||
Investments in securities: | |||||||||||||||
At identified cost | $323,560,219 | $330,028,754 | $355,610,241 | $626,107,458 | $281,271,421 | ||||||||||
At value (Note 1A) | $355,737,679 | $376,290,537 | $478,218,203 | $742,932,953 | $308,246,008 | ||||||||||
Cash | 44,191 | 437,629 | 358,622 | 715,108 | 2,061,578 | ||||||||||
Receivables: | |||||||||||||||
Investment securities sold | 7,129,082 | 331,706 | 196,241 | 1,529,346 | 4,197,231 | ||||||||||
Dividends and interest | 1,953,356 | 887,814 | 760,672 | 1,063,094 | 598,655 | ||||||||||
Shares sold | 568,707 | 722,844 | 585,602 | 1,400,814 | 652,654 | ||||||||||
Other assets | 40,870 | 45,935 | 59,868 | 90,767 | 56,235 | ||||||||||
Total Assets | 365,473,885 | 378,716,465 | 480,179,208 | 747,732,082 | 315,812,361 | ||||||||||
Liabilities | |||||||||||||||
Payables: | |||||||||||||||
Investment securities purchased | 5,036,533 | — | — | 1,153,901 | 6,594,215 | ||||||||||
Shares redeemed | 858,783 | 755,741 | 1,120,122 | 1,469,607 | 351,722 | ||||||||||
Dividends payable | 27,263 | 18,707 | 7,030 | 7,289 | — | ||||||||||
Forward currency contracts (Note 6) | — | — | — | — | 1,530 | ||||||||||
Accrued advisory fees | 226,355 | 237,200 | 299,174 | 453,653 | 246,600 | ||||||||||
Accrued shareholder servicing costs | 70,517 | 80,541 | 128,861 | 170,216 | 70,748 | ||||||||||
Accrued expenses | 34,247 | 31,815 | 34,976 | 65,898 | 59,302 | ||||||||||
Total Liabilities | 6,253,698 | 1,124,004 | 1,590,163 | 3,320,564 | 7,324,117 | ||||||||||
Net Assets | $359,220,187 | $377,592,461 | $478,589,045 | $744,411,518 | $308,488,244 | ||||||||||
Net Assets Consist of: | |||||||||||||||
Capital paid in | $326,354,820 | $355,742,166 | $453,679,090 | $624,865,495 | $280,361,179 | ||||||||||
Undistributed net investment income (loss) | 83,756 | 886,426 | 923,661 | 1,185,382 | (1,489,431) | ||||||||||
Accumulated net realized gain (loss) on investments | 604,151 | (25,297,914) | (98,621,668) | 1,535,146 | 2,630,073 | ||||||||||
Net unrealized appreciation in value of investments | 32,177,460 | 46,261,783 | 122,607,962 | 116,825,495 | 26,986,423 | ||||||||||
Total | $359,220,187 | $377,592,461 | $478,589,045 | $744,411,518 | $308,488,244 | ||||||||||
Net Assets: | |||||||||||||||
Class A | $330,114,104 | $356,307,234 | $444,533,152 | $692,351,631 | $296,840,273 | ||||||||||
Class B | $ 29,106,083 | $ 21,285,227 | $ 34,055,893 | $ 52,059,887 | $ 11,647,971 | ||||||||||
Shares outstanding (Note 7): | |||||||||||||||
Class A | 22,998,612 | 50,165,991 | 19,904,972 | 48,264,444 | 42,586,090 | ||||||||||
Class B | 2,059,502 | 3,045,150 | 1,637,455 | 3,832,226 | 1,883,435 | ||||||||||
Net asset value and redemption price | |||||||||||||||
per share – Class A | $14.35 | $7.10 | $22.33 | $14.34 | $6.97 | ||||||||||
Maximum offering price per share – Class A | |||||||||||||||
(Net asset value/.9425)* | $15.23 | $7.53 | $23.69 | $15.21 | $7.40 | ||||||||||
Net asset value and offering price per share – | |||||||||||||||
Class B (Note 7) | $14.13 | $6.99 | $20.80 | $13.58 | $6.18 | ||||||||||
*On purchases of $100,000 or more, the sales charge is reduced. | |||||||||||||||
90 | See notes to financial statements | 91 |
Statements of Assets and Liabilities | ||||||||||||||||||
FIRST INVESTORS EQUITY FUNDS | ||||||||||||||||||
March 31, 2008 | ||||||||||||||||||
SELECT | SPECIAL | |||||||||||||||||
GROWTH | OPPORTUNITY | SITUATIONS | INTERNATIONAL | |||||||||||||||
Assets | ||||||||||||||||||
Investments in securities: | ||||||||||||||||||
At identified cost | $241,973,432 | $385,498,336 | $259,434,055 | $115,020,959 | ||||||||||||||
At value (Note 1A) | $243,899,861 | $456,556,681 | $278,919,356 | $122,074,756 | ||||||||||||||
Cash | 597,602 | 716,785 | 1,300,652 | 1,960,210 | ||||||||||||||
Receivables: | ||||||||||||||||||
Investment securities sold | 1,821,013 | 3,851,066 | — | 187,778 | ||||||||||||||
Dividends and interest | 99,759 | 554,223 | 119,450 | 429,988 | ||||||||||||||
Shares sold | 768,134 | 709,253 | 308,863 | 767,508 | ||||||||||||||
Forward currency contracts (Note 6) | — | — | — | 372 | ||||||||||||||
Other assets | 29,246 | 56,167 | 33,897 | 10,433 | ||||||||||||||
Total Assets | 247,215,615 | 462,444,175 | 280,682,218 | 125,431,045 | ||||||||||||||
Liabilities | ||||||||||||||||||
Payables: | ||||||||||||||||||
Investment securities purchased | 2,528,459 | 821,322 | 1,090,889 | 673,765 | ||||||||||||||
Shares redeemed | 412,264 | 1,001,388 | 524,568 | 256,442 | ||||||||||||||
Foreign exchange contracts (Note 6) | — | — | — | 1,070,093 | ||||||||||||||
Accrued advisory fees | 153,618 | 285,609 | 189,050 | 100,544 | ||||||||||||||
Accrued shareholder servicing costs | 62,101 | 104,730 | 70,062 | 48,083 | ||||||||||||||
Accrued expenses | 36,116 | 54,327 | 44,629 | 37,515 | ||||||||||||||
Total Liabilities | 3,192,558 | 2,267,376 | 1,919,198 | 2,186,442 | ||||||||||||||
Net Assets | $244,023,057 | $460,176,799 | $278,763,020 | $123,244,603 | ||||||||||||||
Net Assets Consist of: | ||||||||||||||||||
Capital paid in | $259,324,156 | $382,299,834 | $261,534,281 | $123,442,581 | ||||||||||||||
Undistributed net investment income (loss) | (678,380) | 118,138 | (299,846) | (2,209,199) | ||||||||||||||
Accumulated net realized gain (loss) on investments | ||||||||||||||||||
and foreign currency transactions | (16,549,148) | 6,700,482 | (1,956,716) | (3,977,824) | ||||||||||||||
Net unrealized appreciation in value of investments | ||||||||||||||||||
and foreign currency transactions | 1,926,429 | 71,058,345 | 19,485,301 | 5,989,045 | ||||||||||||||
Total | $244,023,057 | $460,176,799 | $278,763,020 | $123,244,603 | ||||||||||||||
Net Assets: | ||||||||||||||||||
Class A | $222,874,979 | $419,990,884 | $264,208,205 | $118,502,009 | ||||||||||||||
Class B | $ 21,148,078 | $ 40,185,915 | $ 14,554,815 | $ 4,742,594 | ||||||||||||||
Shares outstanding (Note 7): | ||||||||||||||||||
Class A | 29,725,022 | 16,499,408 | 12,765,656 | 9,974,964 | ||||||||||||||
Class B | 3,007,967 | 1,771,958 | 792,885 | 404,158 | ||||||||||||||
Net asset value and redemption price | ||||||||||||||||||
per share – Class A | $7.50 | $25.45 | $20.70 | $11.88 | ||||||||||||||
Maximum offering price per share – Class A | ||||||||||||||||||
(Net asset value/.9425)* | $7.96 | $27.00 | $21.96 | $12.60 | ||||||||||||||
Net asset value and offering price per share – | ||||||||||||||||||
Class B (Note 7) | $7.03 | $22.68 | $18.36 | $11.73 | ||||||||||||||
*On purchases of $100,000 or more, the sales charge is reduced. | ||||||||||||||||||
92 | See notes to financial statements | 93 |
Statements of Operations | ||||||||||
FIRST INVESTORS INCOME FUNDS | ||||||||||
Six Months Ended March 31, 2008 | ||||||||||
CASH | INVESTMENT | |||||||||
MANAGEMENT | GOVERNMENT | GRADE | INCOME | |||||||
Investment Income | ||||||||||
Income: | ||||||||||
Interest | $5,205,098 | $6,079,394 | $8,270,546 | $ 23,886,063 | ||||||
Dividends | — | — | 440,756 | 155,385 | ||||||
Total income | 5,205,098 | 6,079,394 | 8,711,302 | 24,041,448 | ||||||
Expenses (Notes 1 and 3): | ||||||||||
Advisory fees | 601,111 | 718,886 | 1,009,353 | 2,035,160 | ||||||
Distribution plan expenses – Class A | — | 309,470 | 426,219 | 803,080 | ||||||
Distribution plan expenses – Class B | 10,866 | 57,653 | 108,591 | 109,537 | ||||||
Shareholder servicing costs | 371,639 | 204,510 | 298,790 | 574,345 | ||||||
Professional fees | 22,488 | 24,002 | 21,513 | 63,672 | ||||||
Registration fees | 38,146 | 20,200 | 32,683 | 27,538 | ||||||
Custodian fees | 29,935 | 16,332 | 10,028 | 14,890 | ||||||
Reports to shareholders | 22,307 | 9,898 | 16,245 | 33,218 | ||||||
Trustees’ fees | 5,374 | 4,929 | 6,917 | 13,430 | ||||||
Other expenses | 33,148 | 28,675 | 35,524 | 55,742 | ||||||
Total expenses | 1,135,014 | 1,394,555 | 1,965,863 | 3,730,612 | ||||||
Less: Expenses waived | (161,373) | (149,281) | (201,890) | — | ||||||
Expenses paid indirectly | (1,275) | (6,838) | (6,212) | (12,459) | ||||||
Net expenses | 972,366 | 1,238,436 | 1,757,761 | 3,718,153 | ||||||
Net investment income | 4,232,732 | 4,840,958 | 6,953,541 | 20,323,295 | ||||||
Realized and Unrealized Gain (Loss) on Investments (Note 2): | ||||||||||
Net realized gain (loss) on investments | — | 348,983 | 2,471,823 | (7,902,051) | ||||||
Net unrealized appreciation (depreciation) of investments | — | 5,660,442 | (527,709) | (44,208,226) | ||||||
Net gain (loss) on investments | — | 6,009,425 | 1,944,114 | (52,110,277) | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $4,232,732 | $10,850,383 | $8,897,655 | $ (31,786,982) | ||||||
94 | See notes to financial statements | 95 |
Statements of Operations | |||||||||||
FIRST INVESTORS EQUITY FUNDS | |||||||||||
Six Months Ended March 31, 2008 | |||||||||||
TOTAL | GROWTH & | ||||||||||
RETURN | VALUE | BLUE CHIP | INCOME | GLOBAL | |||||||
Investment Income | |||||||||||
Dividends | $2,781,899 | (a) | $5,595,717 | (b) | $5,702,504 | (c) | $10,198,624 | (d) | $2,156,241 | (e) | |
Interest | 4,421,700 | 443,469 | 170,567 | 31,381 | 173,127 | ||||||
Total income | 7,203,599 | 6,039,186 | 5,873,071 | 10,230,005 | 2,329,368 | ||||||
Expenses (Notes 1 and 3): | |||||||||||
Advisory fees | 1,410,702 | 1,526,091 | 1,944,831 | 2,924,321 | 1,607,673 | ||||||
Distribution plan expenses – Class A | 521,226 | 580,665 | 733,386 | 1,133,497 | 473,832 | ||||||
Distribution plan expenses – Class B | 158,706 | 120,839 | 199,396 | 296,884 | 64,970 | ||||||
Shareholder servicing costs | 429,258 | 483,095 | 790,263 | 1,086,253 | 468,669 | ||||||
Professional fees | 23,776 | 29,812 | 41,297 | 48,069 | 33,765 | ||||||
Custodian fees | 18,694 | 14,061 | 15,487 | 25,359 | 120,526 | ||||||
Registration fees | 26,273 | 31,479 | 28,723 | 32,637 | 18,882 | ||||||
Reports to shareholders | 18,662 | 22,278 | 27,994 | 50,944 | 20,062 | ||||||
Trustees’ fees | 8,669 | 9,630 | 12,429 | 18,772 | 7,572 | ||||||
Other expenses | 41,113 | 43,306 | 17,389 | 74,248 | 50,887 | ||||||
Total expenses | 2,657,079 | 2,861,256 | 3,811,195 | 5,690,984 | 2,866,838 | ||||||
Less: Expenses waived | — | — | — | — | (45,483) | ||||||
Expenses paid indirectly | (11,942) | (10,041) | (8,175) | (8,301) | (766) | ||||||
Net expenses | 2,645,137 | 2,851,215 | 3,803,020 | 5,682,683 | 2,820,589 | ||||||
Net investment income (loss) | 4,558,462 | 3,187,971 | 2,070,051 | 4,547,322 | (491,221) | ||||||
Realized and Unrealized Gain (Loss) on Investments | |||||||||||
(Note 2): | |||||||||||
Net realized gain (loss) on: | |||||||||||
Investments | 2,224,119 | 2,574,452 | (2,598,690) | 5,525,189 | 7,109,460 | ||||||
Foreign currency transactions | — | — | — | — | (54,937) | ||||||
Net realized gain (loss) on investments | |||||||||||
and foreign currency transactions | 2,224,119 | 2,574,452 | (2,598,690) | 5,525,189 | 7,054,523 | ||||||
Net unrealized appreciation (depreciation) of: | |||||||||||
Investments | (31,999,088) | (58,214,006) | (69,622,621) | (126,506,020) | (39,081,023) | ||||||
Foreign currency transactions | — | — | — | — | 2,312 | ||||||
Net unrealized depreciation of investments | |||||||||||
and foreign currency transactions | (31,999,088) | (58,214,006) | (69,622,621) | (126,506,020) | (39,078,711) | ||||||
Net loss on investments and foreign currency transactions | (29,774,969) | (55,639,554) | (72,221,311) | (120,980,831) | (32,024,188) | ||||||
Net Decrease in Net Assets Resulting from Operations | $(25,216,507) | $(52,451,583) | $(70,151,260) | $(116,433,509) | $ (32,515,409) | ||||||
(a) Net of $1,184 foreign taxes withheld | |||||||||||
(b) Net of $30,323 foreign taxes withheld | |||||||||||
(c) Net of $19,684 foreign taxes withheld | |||||||||||
(d) Net of $4,482 foreign taxes withheld | |||||||||||
(e) Net of $95,756 foreign taxes withheld | |||||||||||
96 | See notes to financial statements | 97 |
Statements of Operations | ||||||||||
FIRST INVESTORS EQUITY FUNDS | ||||||||||
SELECT | SPECIAL | |||||||||
GROWTH | OPPORTUNITY | SITUATIONS | INTERNATIONAL | |||||||
Investment Income | ||||||||||
Dividends | $ 1,077,450 | $ 3,626,455 | (f) | $ 1,763,605 | $ 844,513 | (g) | ||||
Interest | 202,950 | 116,397 | 258,869 | 155,072 | ||||||
Total income | 1,280,400 | 3,742,852 | 2,022,474 | 999,585 | ||||||
Expenses (Notes 1 and 3): | ||||||||||
Advisory fees | 980,884 | 1,841,691 | 1,391,459 | 574,141 | ||||||
Distribution plan expenses – Class A | 356,441 | 680,901 | 430,527 | 168,762 | ||||||
Distribution plan expenses – Class B | 119,707 | 227,553 | 83,213 | 23,319 | ||||||
Shareholder servicing costs | 428,917 | 715,944 | 481,109 | 283,648 | ||||||
Professional fees | 25,116 | 27,324 | 30,257 | 14,861 | ||||||
Custodian fees | 23,098 | 18,942 | 10,058 | 51,878 | ||||||
Registration fees | 29,756 | 21,702 | 21,225 | 9,685 | ||||||
Reports to shareholders | 8,087 | 31,693 | 20,294 | 12,897 | ||||||
Trustees’ fees | 5,972 | 11,577 | 7,053 | 2,557 | ||||||
Other expenses | 1,152 | 53,327 | 29,715 | 22,068 | ||||||
Total expenses | 1,979,130 | 3,630,654 | 2,504,910 | 1,163,816 | ||||||
Less: Expenses (waived) repaid to advisor (Note 3) | — | — | (176,817) | 19,276 | ||||||
Expenses paid indirectly | (20,350) | (5,940) | (5,773) | (294) | ||||||
Net expenses | 1,958,780 | 3,624,714 | 2,322,320 | 1,182,798 | ||||||
Net investment income (loss) | (678,380) | 118,138 | (299,846) | (183,213) | ||||||
Realized and Unrealized Gain (Loss) on Investments | ||||||||||
and Foreign Currency Transactions (Note 2): | ||||||||||
Net realized gain (loss) on: | ||||||||||
Investments | (16,545,599) | 6,792,085 | (1,749,219) | (1,765,576) | ||||||
Foreign currency transactions | — | — | — | (120,860) | ||||||
Net realized gain (loss) on investments | ||||||||||
and foreign currency transactions | (16,545,599) | 6,792,085 | (1,749,219) | (1,886,436) | ||||||
Net unrealized depreciation of: | ||||||||||
Investments | (23,450,058) | (63,672,886) | (30,071,423) | (7,357,793) | ||||||
Foreign currency transactions | — | — | — | (576,453) | ||||||
Net unrealized depreciation of investments | ||||||||||
and foreign currency transactions | (23,450,058) | (63,672,886) | (30,071,423) | (7,934,246) | ||||||
Net loss on investments and foreign currency transactions | (39,995,657) | (56,880,801) | (31,820,642) | (9,820,682) | ||||||
Net Decrease in Net Assets Resulting from Operations | $ (40,674,037) | $ (56,762,663) | $ (32,120,488) | $ (10,003,895) | ||||||
(f) Net of $5,735 foreign taxes withheld | ||||||||||
(g) Net of $98,079 foreign taxes withheld | ||||||||||
98 | See notes to financial statements | 99 |
Statements of Changes in Net Assets | |||||||||||||||
FIRST INVESTORS INCOME FUNDS | |||||||||||||||
CASH MANAGEMENT | GOVERNMENT | INVESTMENT GRADE | INCOME | ||||||||||||
10/1/07 to | 10/1/06 to | 10/1/07 to | 10/1/06 to | 10/1/07 to | 10/1/06 to | 10/1/07 to | 10/1/06 to | ||||||||
3/31/08 | 9/30/07 | 3/31/08 | 9/30/07 | 3/31/08 | 9/30/07 | 3/31/08 | 9/30/07 | ||||||||
Increase (Decrease) in Net Assets From Operations | |||||||||||||||
Net investment income | $ 4,232,732 | $ 9,601,006 | $ 4,840,958 | $ 8,749,400 | $ 6,953,541 | $ 12,265,938 | $ 20,323,295 | $ 41,632,907 | |||||||
Net realized gain (loss) on investments | — | — | 348,983 | (362,482) | 2,471,823 | 461,845 | (7,902,051) | (5,253,591) | |||||||
Net unrealized appreciation (depreciation) of investments | — | — | 5,660,442 | (191,790) | (527,709) | (2,402,019) | (44,208,226) | 1,569,619 | |||||||
Net increase (decrease) in net assets resulting | |||||||||||||||
from operations | 4,232,732 | 9,601,006 | 10,850,383 | 8,195,128 | 8,897,655 | 10,325,764 | (31,786,982) | 37,948,935 | |||||||
Dividends to Shareholders | |||||||||||||||
Net investment income – Class A | (4,193,006) | (9,508,072) | (4,628,089) | (8,953,505) | (6,976,832) | (12,261,832) | (19,716,202) | (39,264,321) | |||||||
Net investment income – Class B | (39,726) | (92,934) | (218,535) | (489,437) | (458,734) | (944,574) | (723,969) | (1,743,259) | |||||||
Total dividends | (4,232,732) | (9,601,006) | (4,846,624) | (9,442,942) | (7,435,566) | (13,206,406) | (20,440,171) | (41,007,580) | |||||||
Share Transactions * | |||||||||||||||
Class A: | |||||||||||||||
Proceeds from shares sold | 136,257,168 | 234,508,668 | 24,241,261 | 38,427,226 | 40,936,003 | 69,936,306 | 23,286,958 | 60,588,115 | |||||||
Reinvestment of dividends | 4,118,066 | 9,341,321 | 4,099,447 | 7,807,197 | 6,114,519 | 10,583,520 | 15,532,045 | 30,474,627 | |||||||
Cost of shares redeemed | (108,296,057) | (226,716,504) | (15,696,738) | (32,955,729) | (23,558,025) | (38,531,439) | (40,970,698) | (79,486,802) | |||||||
32,079,177 | 17,133,485 | 12,643,970 | 13,278,694 | 23,492,497 | 41,988,387 | (2,151,695) | 11,575,940 | ||||||||
Class B: | |||||||||||||||
Proceeds from shares sold | 3,329,745 | 2,857,393 | 1,278,137 | 1,656,236 | 1,700,795 | 2,657,890 | 682,137 | 2,526,656 | |||||||
Reinvestment of dividends | 36,777 | 84,139 | 201,849 | 449,226 | 417,352 | 853,540 | 564,204 | 1,307,604 | |||||||
Cost of shares redeemed | (2,238,167) | (3,120,867) | (1,522,014) | (3,659,377) | (2,449,773) | (5,240,826) | (4,294,834) | (9,854,689) | |||||||
1,128,355 | (179,335) | (42,028) | (1,553,915) | (331,626) | (1,729,396) | (3,048,493) | (6,020,429) | ||||||||
Net increase (decrease) from share transactions | 33,207,532 | 16,954,150 | 12,601,942 | 11,724,779 | 23,160,871 | 40,258,991 | (5,200,188) | 5,555,511 | |||||||
Net increase (decrease) in net assets | 33,207,532 | 16,954,150 | 18,605,701 | 10,476,965 | 24,622,960 | 37,378,349 | (57,427,341) | 2,496,866 | |||||||
Net Assets | |||||||||||||||
Beginning of period | 219,844,895 | 202,890,745 | 210,176,257 | 199,699,292 | 292,386,534 | 255,008,185 | 587,653,598 | 585,156,732 | |||||||
End of period † | $ 253,052,427 | $ 219,844,895 | $ 228,781,958 | $ 210,176,257 | $ 317,009,494 | $ 292,386,534 | $ 530,226,257 | $ 587,653,598 | |||||||
†Includes undistributed net investment income (deficit) of | $ — | $ — | $ 1,115 | $ 6,781 | $ (3,811,997) | $ (3,329,972) | $ 2,242,982 | $ 2,359,858 | |||||||
*Shares Issued and Redeemed | |||||||||||||||
Class A: | |||||||||||||||
Sold | 136,257,168 | 234,508,668 | 2,232,406 | 3,603,914 | 4,295,932 | 7,387,319 | 8,143,021 | 19,785,469 | |||||||
Issued for dividends reinvested | 4,118,066 | 9,341,321 | 376,770 | 731,771 | 640,284 | 1,117,383 | 5,477,625 | 9,965,886 | |||||||
Redeemed. | (108,296,057) | (226,716,504) | (1,449,599) | (3,086,866) | (2,472,250) | (4,068,637) | (14,397,884) | (25,966,873) | |||||||
Net increase (decrease) in Class A shares outstanding | 32,079,177 | 17,133,485 | 1,159,577 | 1,248,819 | 2,463,966 | 4,436,065 | (777,238) | 3,784,482 | |||||||
Class B: | |||||||||||||||
Sold | 3,329,745 | 2,857,393 | 117,228 | 155,318 | 178,424 | 280,947 | 240,095 | 829,168 | |||||||
Issued for dividends reinvested | 36,777 | 84,139 | 18,553 | 42,104 | 43,759 | 90,199 | 199,228 | 427,922 | |||||||
Redeemed | (2,238,167) | (3,120,867) | (140,862) | (342,831) | (256,894) | (552,729) | (1,507,446) | (3,219,167) | |||||||
Net increase (decrease) in Class B shares outstanding | 1,128,355 | (179,335) | (5,081) | (145,409) | (34,711) | (181,583) | (1,068,123) | (1,962,077) | |||||||
100 | See notes to financial statements | 101 |
Statements of Changes in Net Assets | |||||||||||||||
FIRST INVESTORS EQUITY FUNDS | |||||||||||||||
TOTAL RETURN | VALUE | BLUE CHIP | GROWTH & INCOME | ||||||||||||
10/1/07 to | 10/1/06 to | 10/1/07 to | 10/1/06 to | 10/1/07 to | 10/1/06 to | 10/1/07 to | 10/1/06 to | ||||||||
3/31/08 | 9/30/07 | 3/31/08 | 9/30/07 | 3/31/08 | 9/30/07 | 3/31/08 | 9/30/07 | ||||||||
Increase (Decrease) in Net Assets From Operations | |||||||||||||||
Net investment income | $ 4,558,462 | $ 7,375,510 | $ 3,187,971 | $ 5,429,775 | $ 2,070,051 | $ 3,045,447 | $ 4,547,322 | $ 4,007,275 | |||||||
Net realized gain (loss) on investments | 2,224,119 | 9,847,727 | 2,574,452 | 7,421,981 | (2,598,690) | 12,432,271 | 5,525,189 | 20,850,814 | |||||||
Net unrealized appreciation (depreciation) of investments | (31,999,088) | 23,270,714 | (58,214,006) | 29,157,401 | (69,622,621) | 56,419,022 | (126,506,020) | 99,717,015 | |||||||
Net increase (decrease) in net assets resulting | |||||||||||||||
from operations | (25,216,507) | 40,493,951 | (52,451,583) | 42,009,157 | (70,151,260) | 71,896,740 | (116,433,509) | 124,575,104 | |||||||
Distributions to Shareholders | |||||||||||||||
Net investment income – Class A | (5,372,454) | (6,496,959) | (3,319,851) | (4,884,892) | (2,208,923) | (2,538,723) | (4,169,997) | (3,321,330) | |||||||
Net investment income – Class B | (381,191) | (437,230) | (123,907) | (158,524) | (53,615) | — | (165,732) | (20,137) | |||||||
Net realized gains – Class A | (6,213,089) | (2,189,339) | — | — | — | — | (10,054,169) | (10,825,654) | |||||||
Net realized gains – Class B | (574,376) | (248,051) | — | — | — | — | (838,220) | (1,163,363) | |||||||
Total distributions | (12,541,110) | (9,371,579) | (3,443,758) | (5,043,416) | (2,262,538) | (2,538,723) | (15,228,118) | (15,330,484) | |||||||
Share Transactions * | |||||||||||||||
Class A: | |||||||||||||||
Proceeds from shares sold | 27,979,445 | 58,416,394 | 32,371,413 | 100,634,552 | 26,746,471 | 58,252,544 | 57,457,867 | 144,742,009 | |||||||
Value of shares issued for acquisition** | — | — | — | — | — | 42,266,488 | — | — | |||||||
Reinvestment of distributions. | 11,455,563 | 8,570,045 | 3,272,560 | 4,810,843 | 2,188,547 | 2,514,542 | 14,120,459 | 14,046,975 | |||||||
Cost of shares redeemed | (29,991,216) | (51,721,710) | (40,908,296) | (62,678,699) | (43,610,530) | (77,931,789) | (65,425,234) | (121,637,432) | |||||||
9,443,792 | 15,264,729 | (5,264,323) | 42,766,696 | (14,675,512) | 25,101,785 | 6,153,092 | 37,151,552 | ||||||||
Class B: | |||||||||||||||
Proceeds from shares sold | 1,124,556 | 3,131,690 | 1,146,379 | 3,741,260 | 1,204,521 | 3,077,799 | 2,480,950 | 6,702,137 | |||||||
Value of shares issued for acquisition** | — | — | — | — | — | 5,256,892 | — | — | |||||||
Reinvestment of distributions. | 950,014 | 682,111 | 122,857 | 157,220 | 53,508 | — | 1,001,473 | 1,180,077 | |||||||
Cost of shares redeemed | (4,009,905) | (8,579,532) | (3,730,935) | (7,606,342) | (7,344,213) | (13,096,048) | (8,427,500) | (22,768,583) | |||||||
(1,935,335) | (4,765,731) | (2,461,699) | (3,707,862) | (6,086,184) | (4,761,357) | (4,945,077) | (14,886,369) | ||||||||
Net increase (decrease) from share transactions | 7,508,457 | 10,498,998 | (7,726,022) | 39,058,834 | (20,761,696) | 20,340,428 | 1,208,015 | 22,265,183 | |||||||
Net increase (decrease) in net assets | (30,249,160) | 41,621,370 | (63,621,363) | 76,024,575 | (93,175,494) | 89,698,445 | (130,453,612) | 131,509,803 | |||||||
Net Assets | |||||||||||||||
Beginning of period | 389,469,347 | 347,847,977 | 441,213,824 | 365,189,249 | 571,764,539 | 482,066,094 | 874,865,130 | 743,355,327 | |||||||
End of period † | $ 359,220,187 | $ 389,469,347 | $ 377,592,461 | $ 441,213,824 | $ 478,589,045 | $ 571,764,539 | $ 744,411,518 | $ 874,865,130 | |||||||
†Includes undistributed net investment income of | $ 83,756 | $ 1,278,939 | $ 886,426 | $ 1,142,213 | $ 923,661 | $ 1,116,148 | $ 1,185,382 | $ 973,789 | |||||||
*Shares Issued and Redeemed | |||||||||||||||
Class A: | |||||||||||||||
Sold | 1,852,631 | 3,759,553 | 4,271,416 | 12,509,647 | 1,121,859 | 2,409,744 | 3,701,951 | 8,893,877 | |||||||
Issued for acquisition** | — | — | — | — | — | 1,728,265 | — | — | |||||||
Issued for distributions reinvested | 754,294 | 552,458 | 438,403 | 593,740 | 92,384 | 102,169 | 878,982 | 891,851 | |||||||
Redeemed. | (2,002,364) | (3,332,365) | (5,432,883) | (7,781,774) | (1,832,127) | (3,212,113) | (4,250,681) | (7,473,683) | |||||||
Net increase (decrease) in Class A shares outstanding | 604,561 | 979,646 | (723,064) | 5,321,613 | (617,884) | 1,028,065 | 330,252 | 2,312,045 | |||||||
Class B: | |||||||||||||||
Sold | 76,052 | 204,942 | 153,456 | 473,203 | 54,127 | 136,806 | 169,422 | 435,580 | |||||||
Issued for acquisition** | — | — | — | — | — | 230,867 | — | — | |||||||
Issued for distributions reinvested | 63,368 | 44,782 | 16,643 | 19,735 | 2,359 | — | 65,169 | 79,575 | |||||||
Redeemed. | (268,154) | (560,413) | (500,739) | (962,290) | (328,652) | (581,227) | (571,413) | (1,482,827) | |||||||
Net decrease in Class B shares outstanding | (128,734) | (310,689) | (330,640) | (469,352) | (272,166) | (213,554) | (336,822) | (967,672) | |||||||
**See Note 8 | |||||||||||||||
102 | See notes to financial statements | 103 |
Statements of Changes in Net Assets | |||||||||||||||
FIRST INVESTORS EQUITY FUNDS | |||||||||||||||
GLOBAL | SELECT GROWTH | OPPORTUNITY | SPECIAL SITUATIONS | ||||||||||||
10/1/07 to | 10/1/06 to | 10/1/07 to | 10/1/06 to | 10/1/07 to | 10/1/06 to | 10/1/07 to | 10/1/06 to | ||||||||
3/31/08 | 9/30/07 | 3/31/08 | 9/30/07 | 3/31/08 | 9/30/07 | 3/31/08 | 9/30/07 | ||||||||
Increase (Decrease) in Net Assets From Operations | |||||||||||||||
Net investment income (loss) | $ (491,221) | $ (304,687) | $ (678,380) | $ (1,259,160) | $ 118,138 | $ 2,398,990 | $ (299,846) | $ (936,145) | |||||||
Net realized gain (loss) on investments | |||||||||||||||
and foreign currenty transactions | 7,054,523 | 46,310,683 | (16,545,599) | 40,730,258 | 6,792,085 | 50,721,848 | (1,749,219) | 30,291,871 | |||||||
Net unrealized appreciation (depreciation) | |||||||||||||||
of investments and foreign currency transactions | (39,078,711) | 25,030,886 | (23,450,058) | 3,580,367 | (63,672,886) | 25,202,521 | (30,071,423) | 14,116,468 | |||||||
Net increase (decrease) in net assets resulting | |||||||||||||||
from operations | (32,515,409) | 71,036,882 | (40,674,037) | 43,051,465 | (56,762,663) | 78,323,359 | (32,120,488) | 43,472,194 | |||||||
Distributions to Shareholders | |||||||||||||||
Net investment income – Class A | (1,935,582) | (1,703,811) | — | — | (2,157,616) | — | — | — | |||||||
Net investment income – Class B | (88,410) | (95,763) | — | — | (241,374) | — | — | — | |||||||
Net realized gains – Class A | (39,760,740) | (25,963,154) | (34,525,068) | (16,002,768) | (40,556,491) | (20,488,349) | (14,772,999) | (21,193,345) | |||||||
Net realized gains – Class B | (1,816,126) | (1,455,638) | (3,724,631) | (1,981,350) | (4,537,080) | (2,618,556) | (966,711) | (1,645,023) | |||||||
Total distributions | (43,600,858) | (29,218,366) | (38,249,699) | (17,984,118) | (47,492,561) | (23,106,905) | (15,739,710) | (22,838,368) | |||||||
Share Transactions * | |||||||||||||||
Class A: | |||||||||||||||
Proceeds from shares sold | 27,135,991 | 32,159,549 | 33,865,760 | 45,079,857 | 31,012,799 | 64,062,828 | 21,179,382 | 48,294,542 | |||||||
Reinvestment of distributions | 41,083,109 | 27,199,554 | 34,371,915 | 15,949,659 | 42,542,593 | 20,403,976 | 14,700,522 | 21,100,036 | |||||||
Cost of shares redeemed | (21,200,467) | (37,229,022) | (16,491,752) | (36,742,589) | (40,208,914) | (88,627,638) | (21,087,796) | (43,381,291) | |||||||
47,018,633 | 22,130,081 | 51,745,923 | 24,286,927 | 33,346,478 | (4,160,834) | 14,792,108 | 26,013,287 | ||||||||
Class B: | |||||||||||||||
Proceeds from shares sold | 1,168,995 | 1,559,530 | 1,512,345 | 2,358,789 | 1,391,764 | 3,841,591 | 725,127 | 1,733,569 | |||||||
Reinvestment of distributions | 1,896,632 | 1,549,112 | 3,702,717 | 1,970,727 | 4,761,120 | 2,609,026 | 963,947 | 1,642,521 | |||||||
Cost of shares redeemed | (2,250,712) | (4,240,943) | (2,014,755) | (4,462,038) | (6,253,590) | (12,113,021) | (2,173,270) | (4,822,147) | |||||||
814,915 | (1,132,301) | 3,200,307 | (132,522) | (100,706) | (5,662,404) | (484,196) | (1,446,057) | ||||||||
Net increase (decrease) from share transactions | 47,833,548 | 20,997,780 | 54,946,230 | 24,154,405 | 33,245,772 | (9,823,238) | 14,307,912 | 24,567,230 | |||||||
Net increase (decrease) in net assets | (28,282,719) | 62,816,296 | (23,977,506) | 49,221,752 | (71,009,452) | 45,393,216 | (33,552,286) | 45,201,056 | |||||||
Net Assets | |||||||||||||||
Beginning of period | 336,770,963 | 273,954,667 | 268,000,563 | 218,778,811 | 531,186,251 | 485,793,035 | 312,315,306 | 267,114,250 | |||||||
End of period † | $ 308,488,244 | $ 336,770,963 | $ 244,023,057 | $ 268,000,563 | $ 460,176,799 | $ 531,186,251 | $ 278,763,020 | $ 312,315,306 | |||||||
†Includes undistributed net investment income (deficit) of | $ (1,489,431) | $ 1,025,782 | $ (678,380) | $ — | $ 118,138 | $ 2,398,990 | $ (299,846) | $ — | |||||||
*Shares Issued and Redeemed | |||||||||||||||
Class A: | |||||||||||||||
Sold | 3,519,216 | 4,050,899 | 3,970,941 | 4,765,079 | 1,119,357 | 2,107,842 | 937,882 | 2,019,030 | |||||||
Issued for distributions reinvested | 5,206,984 | 3,693,256 | 3,919,261 | 1,822,725 | 1,490,630 | 721,695 | 625,820 | 923,327 | |||||||
Redeemed. | (2,730,073) | (4,696,640) | (1,913,986) | (3,931,282) | (1,461,403) | (2,932,699) | (935,245) | (1,809,098) | |||||||
Net increase (decrease) in Class A shares outstanding | 5,996,127 | 3,047,515 | 5,976,216 | 2,656,522 | 1,148,584 | (103,162) | 628,457 | 1,133,259 | |||||||
Class B: | |||||||||||||||
Sold | 170,319 | 216,529 | 185,995 | 262,040 | 55,746 | 140,039 | 35,455 | 80,360 | |||||||
Issued for distributions reinvested | 270,176 | 230,957 | 449,359 | 235,478 | 186,857 | 101,414 | 46,166 | 79,633 | |||||||
Redeemed. | (317,267) | (592,221) | (251,963) | (501,113) | (249,660) | (441,498) | (107,669) | (225,014) | |||||||
Net increase (decrease) in Class B shares outstanding | 123,228 | (144,735) | 383,391 | (3,595) | (7,057) | (200,045) | (26,048) | (65,021) | |||||||
104 | See notes to financial statements | 105 |
Statements of Changes in Net Assets | |||||||||||||||
FIRST INVESTORS EQUITY FUNDS | |||||||||||||||
INTERNATIONAL | |||||||||||||||
10/1/07 to | 10/1/06 to | ||||||||||||||
3/31/08 | 9/30/07 | ||||||||||||||
Increase (Decrease) in Net Assets From Operations | |||||||||||||||
Net investment loss | $ (183,213) | $ (41,380) | |||||||||||||
Net realized loss on investments | |||||||||||||||
and foreign currenty transactions. | (1,886,436) | (997,950) | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||
of investments and foreign currency transactions | (7,934,246) | 13,111,602 | |||||||||||||
Net increase (decrease) in net assets resulting | |||||||||||||||
from operations | (10,003,895) | 12,072,272 | |||||||||||||
Dividends to Shareholders | |||||||||||||||
Net investment income – Class A | (2,659,071) | (191,658) | |||||||||||||
Net investment income – Class B | (111,221) | (10,723) | |||||||||||||
Total dividends | (2,770,292) | (202,381) | |||||||||||||
Share Transactions * | |||||||||||||||
Class A: | |||||||||||||||
Proceeds from shares sold | 38,364,626 | 70,673,752 | |||||||||||||
Reinvestment of dividends | 2,652,722 | 191,287 | |||||||||||||
Cost of shares redeemed | (6,639,751) | (5,066,692) | |||||||||||||
34,377,597 | 65,798,347 | ||||||||||||||
Class B: | |||||||||||||||
Proceeds from shares sold | 1,314,283 | 2,992,429 | |||||||||||||
Reinvestment of dividends | 111,198 | 10,605 | |||||||||||||
Cost of shares redeemed | (356,524) | (365,541) | This page left intentionally blank. | ||||||||||||
1,068,957 | 2,637,493 | ||||||||||||||
Net increase from share transactions | 35,446,554 | 68,435,840 | |||||||||||||
Net increase in net assets | 22,672,367 | 80,305,731 | |||||||||||||
Net Assets | |||||||||||||||
Beginning of period | 100,572,236 | 20,266,505 | |||||||||||||
End of period † | $ 123,244,603 | $ 100,572,236 | |||||||||||||
†Includes undistributed net investment income (deficit) of | $ (2,209,199) | $ 744,306 | |||||||||||||
*Shares Issued and Redeemed | |||||||||||||||
Class A: | |||||||||||||||
Sold | 2,996,421 | 5,913,413 | |||||||||||||
Reinvestment of dividends | 196,790 | 16,831 | |||||||||||||
Redeemed | (529,249) | (414,729) | |||||||||||||
Net increase in Class A shares outstanding | 2,663,962 | 5,515,515 | |||||||||||||
Class B: | |||||||||||||||
Sold | 103,498 | 253,454 | |||||||||||||
Reinvestment of dividends | 8,336 | 936 | |||||||||||||
Redeemed | (28,189) | (30,527) | |||||||||||||
Net increase in Class B shares outstanding. | 83,645 | 223,863 | |||||||||||||
106 | See notes to financial statements | 107 |
Notes to Financial Statements |
FIRST INVESTORS INCOME FUNDS |
FIRST INVESTORS EQUITY FUNDS |
March 31, 2008 |
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 diversified, open-end management |
investment companies and operate as series funds. The Income Funds issue shares of |
beneficial interest in the Cash Management Fund, Government Fund, Investment |
Grade Fund and Fund For Income. The Equity Funds issue shares of beneficial |
interest in the Total Return Fund, Value Fund, Blue Chip Fund, Growth & Income |
Fund, Global Fund, Select Growth Fund (formerly All-Cap Growth Fund), Opportu- |
nity Fund (formerly Mid-Cap Opportunity Fund), Special Situations Fund, and |
International Fund (each a “Fund”, collectively, “the Funds”). The Trusts account |
separately for the assets, liabilities and operations of each Fund. The objective of |
each Fund as of March 31, 2008 is as follows: |
Cash Management Fund seeks to earn a high rate of current income consistent with |
the preservation of capital and maintenance of liquidity. |
Government Fund seeks to achieve a significant level of current income which is |
consistent with security and liquidity of principal. |
Investment Grade Fund seeks to generate a maximum level of income consistent |
with investment in investment grade debt securities. |
Fund For Income primarily seeks high current income and, secondarily, seeks |
capital appreciation. |
Total Return Fund seeks high, long-term total investment return consistent with |
moderate investment risk. |
Value Fund seeks total return. |
Blue Chip Fund seeks high total investment return. |
Growth & Income Fund seeks long-term growth of capital and current income. |
Global Fund primarily seeks long-term capital growth and, secondarily, a reasonable |
level of current income. |
Select Growth Fund seeks long-term growth of capital. |
Opportunity Fund seeks long-term capital growth. |
Special Situations Fund seeks long-term growth of capital. |
International Fund primarily seeks long-term capital growth. |
108 |
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. Securi- |
ties may also be priced by a pricing service approved by the Trusts’ Board of Trustees |
(the “Board”). The pricing service considers security type, rating, market condition and |
yield data as well as market quotations, prices provided by market makers and other |
available information in determining value. Short-term debt securities that mature in |
60 days or less are valued at amortized cost. |
The Funds monitor for significant events occurring after the close of foreign markets |
but prior to the close of trading on the New York Stock Exchange that could have |
a material impact on the value of any foreign securities that are held by the Funds. |
Examples of such events include natural disasters, political events and issuer-specific |
developments. If the Valuation Committee decides that such events warrant using |
fair value estimates for foreign securities, it will take such events into consideration |
in determining the fair values of such securities. If market quotations or prices are |
not readily available or determined to be unreliable, the securities will be valued at |
fair value as determined in good faith pursuant to procedures adopted by the Board. |
The Funds also use a pricing service to fair value foreign securities in the event that |
fluctuation in U.S. securities markets exceed a predetermined level. For valuation |
purposes, where applicable, quotations of foreign securities in foreign currency are |
translated to U.S. dollar equivalents using the foreign exchange quotation in effect. |
At March 31, 2008, Fund For Income held ten securities that were fair valued by its |
Valuation Committee with an aggregate value of $5,265,929, representing 1.0% of |
the Fund’s net assets and International Fund held twelve securities that were fair val- |
ued by its Valuation Committee with an aggregate value of $12,801,781 representing |
10.4% of the Fund’s net assets. |
The Cash Management Fund values its portfolio securities in accordance with the |
amortized cost method of valuation under Rule 2a-7 of the 1940 Act. Amortized cost |
is an approximation of market value of an instrument, whereby the difference be- |
tween 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. |
109 |
Notes to Financial Statements (continued) |
FIRST INVESTORS INCOME FUNDS |
FIRST INVESTORS EQUITY FUNDS |
March 31, 2008 |
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 com- |
panies 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, 2007, capital loss carryovers were as follows: |
Year Capital Loss Carryovers Expire | |||||||||||||||||||||||||||
Fund | Total | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | ||||||||||||||||||
Government | $ | 9,588,398 | $ | 1,017,364 | $ | 2,144,197 | $ | — | $ | 54,921 | $ | 2,120,906 | $ | 1,600,894 | $ | 740,643 | $ | 1,909,473 | |||||||||
Investment Grade | 7,875,581 | — | 1,715,940 | 27,419 | 407,283 | 1,356,376 | 14 | 74,116 | 4,294,433 | ||||||||||||||||||
Fund For Income | 154,363,100 | 1,832,458 | 13,810,649 | 18,563,112 | 52,099,335 | 25,740,298 | 10,200,012 | 7,456,986 | 24,660,250 | ||||||||||||||||||
Value | 27,853,262 | — | — | — | 27,853,262 | — | — | — | — | ||||||||||||||||||
Blue Chip* | 87,143,349 | 2,138,552 | 2,138,552 | 12,233,984 | 70,632,261 | — | — | — | — | ||||||||||||||||||
International | 82,339 | — | — | — | — | — | — | — | 82,339 |
*For Blue Chip Fund, $7,860,758 of the $87,143,349 capital loss carryforward was acquired in the reorganization with |
Focused Equity Fund and will expire by 2011. |
Effective June 29, 2007, the Funds adopted the Financial Accounting Standards |
Board (“FASB”) Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” |
(“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be |
recognized, measured, presented and disclosed in the financial statements. FIN 48 |
requires the evaluation of tax positions taken or expected to be taken in the course |
of preparing the Funds’ tax returns to determine whether tax positions are “more- |
likely-than-not” of being sustained by the applicable tax authority. Tax positions not |
deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit |
or expense in the current year. Management has reviewed the tax positions for each |
of the open tax years 2004 to 2007 and has determined the adoption of FIN 48 had no |
impact on the financial statements of the Funds. |
C. Distributions to Shareholders—Dividends from net investment income of the Govern- |
ment Fund, Investment Grade Fund and Fund For Income are generally declared daily |
and paid monthly. The Cash Management Fund declares distributions daily and pays |
distributions monthly. Distributions are declared from the total of net investment income |
plus or minus all realized short-term gains and losses on investments. Dividends from net |
investment income, if any, of Total Return Fund, Value Fund, Blue Chip Fund and Growth |
& Income Fund are declared and paid quarterly. Dividends from net investment income, |
if any, of Global Fund, Select Growth Fund, Opportunity Fund, Special Situations Fund, |
and International Fund are declared and paid annually. Distributions from net realized |
110 |
capital gains of each of the other Funds, if any, 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, 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. Repurchase Agreements—Securities pledged as collateral for repurchase agree- |
ments entered into by the Global Fund are held by the Global Fund’s custodian until |
maturity of the repurchase agreement. The agreements provide that the Global Fund |
will receive, as collateral, securities with a market value which will at all times be at |
least equal to 100% of the amount invested by the Global Fund. |
F. 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. |
G. Foreign Currency Translations—The accounting records of Global Fund and |
International Fund are maintained in U.S. dollars. 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 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. |
Global Fund and International Fund do not isolate that portion of gains and losses on |
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. |
111 |
Notes to Financial Statements (continued) |
FIRST INVESTORS INCOME FUNDS |
FIRST INVESTORS EQUITY FUNDS |
March 31, 2008 |
H. Security Lending—Fund For Income may loan securities to other investors |
through the Securities Lending Management Agreement (“the Agreement”) with |
Credit Suisse. Under the terms of the Agreement, the Fund is required to maintain |
collateral with a market value not less than 101% of the market value of loaned |
securities. Collateral is adjusted daily in connection with changes in market value of |
securities on loan. Collateral may consist of cash or securities issued or guaranteed |
by the U.S. government or its agencies. Cash collateral may be invested in permis- |
sible instruments authorized by the Agreement. Interest earned on the collateral and |
premiums paid by the broker are recorded as income by the Fund net of fees and |
rebates charged by Credit Suisse for its services in connection with this securities |
lending program. The Fund is subject to all of the investment risks associated with |
the securities that are being loaned and the investments made with the cash collateral. |
The Fund is also subject to the risks associated with a delay in recovering the loaned |
securities or an inability to recover the loaned securities in the event the collateral |
is not sufficient. The market value of securities on loan at March 31, 2008, was |
$51,352,851 (including $1,445,393 of accrued interest), for which the Fund received |
cash collateral of $52,640,202. |
I. Other—Security transactions are accounted for on the date the securities are pur- |
chased or sold. Cost 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. Interest income and estimated expenses |
are accrued daily. Bond discounts and premiums are accreted or amortized using the |
interest method. For the six months ended March 31, 2008, the Bank of New York |
Mellon, custodian of each Fund (other than Global Fund and International Fund), |
has provided credits in the amount of $23,302 for the Income Funds and $63,129 for |
the Equity Funds against custodian charges based on the uninvested cash balances of |
these Funds. The Funds also reduced expenses through brokerage service arrange- |
ments. For the six months ended March 31, 2008, expenses were reduced by $3,482 |
for the Income Funds and by $8,453 for the Equity Funds under these arrangements. |
2. Security Transactions—For the six months ended March 31, 2008, purchases |
and sales of securities and long-term U.S. Government obligations (excluding U.S. |
Treasury bills, repurchase agreements, short-term securities and foreign currencies) |
were as follows: |
112 |
Long-Term U.S. | |||||||||||||||
Securities | Government Obligations | ||||||||||||||
Cost of | Proceeds | Cost of | Proceeds | ||||||||||||
Fund | Purchases | of Sales | Purchases | of Sales | |||||||||||
Government | $ | — | $ | — | $ | 59,912,533 | $ | 51,191,644 | |||||||
Investment Grade | 135,384,829 | 112,885,916 | 37,352,071 | 67,533,472 | |||||||||||
Fund For Income | 55,538,280 | 44,231,809 | — | — | |||||||||||
Total Return | 104,445,060 | 69,867,068 | 7,322,550 | 38,922,969 | |||||||||||
Value | 36,383,510 | 48,423,898 | — | — | |||||||||||
Blue Chip | 14,440,630 | 35,902,236 | — | — | |||||||||||
Growth & Income | 91,832,519 | 102,699,781 | — | — | |||||||||||
Global. | 200,333,450 | 191,594,870 | — | — | |||||||||||
Select Growth. | 124,339,895 | 113,049,599 | — | — | |||||||||||
Opportunity | 94,848,968 | 105,714,720 | — | — | |||||||||||
Special Situations | 69,961,384 | 78,286,030 | — | — | |||||||||||
International | 90,113,566 | 59,986,969 | — | — |
At March 31, 2008, aggregate cost and net unrealized appreciation (depreciation) of |
securities for federal income tax purposes were as follows: |
Net | |||||||||||||||
Gross | Gross | Unrealized | |||||||||||||
Aggregate | Unrealized | Unrealized | Appreciation | ||||||||||||
Fund | Cost | Appreciation | Depreciation | (Depreciation) | |||||||||||
Government | $ | 234,226,879 | $ | 3,063,487 | $ | 267,684 | $ | 2,795,803 | |||||||
Investment Grade | 306,365,860 | 3,766,114 | 8,021,357 | (4,255,243) | |||||||||||
Fund For Income | 588,598,244 | 3,018,031 | 75,376,496 | (72,358,465) | |||||||||||
Total Return | 325,785,048 | 50,462,074 | 20,509,442 | 29,952,632 | |||||||||||
Value | 330,047,858 | 76,106,052 | 29,863,373 | 46,242,679 | |||||||||||
Blue Chip | 363,723,594 | 138,215,674 | 23,721,065 | 114,494,609 | |||||||||||
Growth & Income | 630,096,392 | 184,060,878 | 71,224,317 | 112,836,561 | |||||||||||
Global* | 283,095,604 | 37,476,910 | 12,326,506 | 25,150,404 | |||||||||||
Select Growth. | 241,976,274 | 13,899,114 | 11,975,527 | 1,923,587 | |||||||||||
Opportunity | 385,589,113 | 108,037,496 | 37,069,928 | 70,967,568 | |||||||||||
Special Situations | 259,640,773 | 39,313,557 | 20,034,974 | 19,278,583 | |||||||||||
International* | 116,737,364 | 9,599,437 | 4,262,045 | 5,337,392 |
*Aggregate cost includes PFIC income of $1,106,120 for Global Fund and $1,587,080 for | |
International Fund. | |
113 |
Notes to Financial Statements (continued) |
FIRST INVESTORS INCOME FUNDS |
FIRST INVESTORS EQUITY FUNDS |
March 31, 2008 |
3. Advisory Fee and Other Transactions With Affiliates—Certain officers and |
trustees of the Trusts are officers and directors of the Trusts’ investment adviser, First |
Investors Management Company, Inc. (“FIMCO”), their underwriter, First Investors |
Corporation (“FIC”), their transfer agent, Administrative Data Management Corp. |
(“ADM”) and/or First Investors Federal Savings Bank, (“FIFSB”), custodian of the |
Funds’ retirement accounts. Trustees of the Trusts who are not “interested persons” |
of the Funds as defined in the 1940 Act are remunerated by the Funds. For the six |
months ended March 31, 2008, total trustees’ fees accrued by the Income Funds and |
Equity Funds amounted to $30,650 and $84,231, respectively. |
The Investment Advisory Agreements provide as compensation to FIMCO, an annual |
fee, payable monthly, at the following rates: |
Cash Management Fund— .50% of the Fund’s average daily net assets. During the |
period October 1, 2007 to March 31, 2008, FIMCO has voluntarily waived $161,373 |
in advisory fees to limit the Fund’s overall expense ratio to .80% on Class A shares |
and 1.55% on Class B shares. |
Government Fund—.66% on the first $500 million of the 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. During the period October 1, 2007 to March 31, |
2008, FIMCO has voluntarily waived $149,281 in advisory fees to limit the Fund’s |
overall expense ratio to 1.10% on Class A shares and 1.80% on Class B shares. |
Investment Grade Fund— .66% on the first $500 million of the 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. During the period October 1, 2007 to March 31, 2008, |
FIMCO has voluntarily waived $201,890 in advisory fees to limit the Fund’s overall |
expense ratio to 1.10% on Class A shares and 1.80% on Class B shares. |
Fund For Income— .75% on the first $250 million of the 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. |
Total Return, Value, Blue Chip, Growth & Income, Select Growth, and |
Opportunity 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. |
114 |
Special Situations Fund— 1% 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. During the period October 1, 2007 to March 31, 2008, |
FIMCO has voluntarily waived 20% of the 1% annual fee to limit the advisory fee to |
.80% of the Fund’s average daily net assets. |
Global and International Funds— .98% on the first $300 million of each Fund’s |
average daily net assets, .95% on the next $300 million, .92% on the next $400 mil- |
lion, .90% on the next $500 million and .88% on average daily net assets over $1.5 |
billion. During the period October 1, 2007 to March 31, 2008, FIMCO has volun- |
tarily waived 3.1% of the .98% annual fee on Global Fund to limit the advisory fee to |
.95% of the Fund’s average daily net assets. |
For the six months ended March 31, 2008, total advisory fees accrued to FIMCO by |
the Income Funds and Equity Funds were $4,364,510 and $14,201,793, respectively, |
of which $512,544 and $222,300, respectively, was voluntarily waived by FIMCO as |
noted above. |
FIMCO, pursuant to an expense limitation agreement, assumed for the International |
Fund organizational expenses and expenses incurred during the fiscal year ended |
September 30, 2006, to limit the International Fund’s total expenses to 2.50% of the |
average daily net assets on the Class A shares and 3.20% of the average daily net |
assets on the Class B shares. FIMCO and the International Fund have agreed that any |
expenses of the International Fund assumed by FIMCO pursuant to this agreement |
shall be repaid to FIMCO by the International Fund in the first, second, or third fiscal |
years following the year ended September 30, 2006, if the total expenses of the In- |
ternational Fund for such year or years do not exceed 2.50% of the average daily net |
assets on Class A shares and 3.20% on the average daily net assets of Class B shares |
or any lower expense limitations to which FIMCO may otherwise agree. The total or- |
ganizational expenses and expenses incurred in excess of the above stated limitations |
was $101,265. During the year ended September 30, 2007, the International Fund has |
repaid FIMCO $81,989 pursuant to the terms of the agreement. During the period |
October 1, 2007 to March 31, 2008, the International Fund has repaid to FIMCO the |
remaining amount of $19,276. |
For the six months ended March 31, 2008, FIC, as underwriter, received from the |
Income Funds and Equity Funds $2,490,952 and $12,153,302, respectively, in com- |
missions in connection with the sale of shares of the Funds, after allowing $7,795 |
and $3,674, respectively, to other dealers. For the six months ended March 31, 2008, |
shareholder servicing costs for the Income Funds and Equity Funds included $1,108,882 |
115 |
Notes to Financial Statements (continued) |
FIRST INVESTORS INCOME FUNDS |
FIRST INVESTORS EQUITY FUNDS |
March 31, 2008 |
and $3,809,781, respectively, in transfer agent fees accrued to ADM and $185,432 and |
$980,779, respectively, in retirement accounts custodian fees accrued to FIFSB. |
Pursuant to Distribution Plans adopted under Rule 12b-1 of the 1940 Act, each Fund, |
other than the Cash Management Fund, is authorized to pay FIC a fee up to .30% |
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 Cash Management Fund is authorized to pay FIC a fee of 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 six months ended March 31, 2008, total distribu- |
tion plan fees accrued to FIC by the Income Funds and Equity Funds amounted to |
$1,825,416 and $6,373,824, respectively. |
Wellington Management Company, LLP (“Wellington”) serves as investment subadvis- |
er to Global Fund, Smith Asset Management Group, L.P. serves as investment subad- |
viser to Select Growth Fund, Paradigm Capital Management, Inc. serves as investment |
subadviser to Special Situations Fund and Vontobel Asset Management, Inc. serves as |
investment subadviser to International Fund. The subadvisers are paid by FIMCO and |
not by the Funds. |
4. Restricted Securities— Certain restricted securities are exempt from the registra- |
tion requirements under Rule 144A of the Securities Act of 1933 and may only be |
sold to qualified institutional investors. At March 31, 2008, Cash Management Fund |
held two 144A securities with an aggregate value of $11,866,829 representing 4.7% |
of the Fund’s net assets, Investment Grade Fund held eleven 144A securities with an |
aggregate value of $15,643,770 representing 4.9% of the Fund’s net assets, Fund For |
Income held twenty-seven 144A securities with an aggregate value of $66,417,392 |
representing 12.5% of the Fund’s net assets, Total Return Fund held four 144A |
securities with an aggregate value of $2,819,600 representing .8% of the Fund’s net |
assets and Global Fund held one 144A security with a value of $357,500, represent- |
ing .1% of the Fund’s net assets. Certain restricted securities are exempt from the |
registration requirements under Section 4(2) of the Securities Act of 1933 and may |
only be sold to qualified investors. At March 31, 2008, Cash Management Fund held |
seventeen Section 4(2) securities with an aggregate value of $88,398,048 represent- |
ing 34.9% of the Fund’s net assets, Fund For Income held one Section 4(2) security |
with a value of $9,986,857 representing 1.9% of the Fund’s net assets, Value Fund |
held one Section 4(2) security with a value of $17,477,000 representing 4.6% of the |
Fund’s net assets, Blue Chip Fund held two Section 4(2) securities with an aggregate |
value of $5,993,132 representing 1.3% of the Fund’s net assets, Growth & Income |
116 |
Fund held one Section 4(2) security with a value of $1,299,173 representing .2% of |
the Fund’s net assets, Select Growth Fund held one Section 4(2) security with a value |
of $7,290,406 representing 3.0% of the Fund’s net assets, Opportunity Fund held |
one Section 4(2) security with a value of $2,796,320 representing .6% of the Fund’s |
net assets, Special Situations Fund held one Section 4(2) security with a value of |
$6,495,867 representing 2.3% of the Fund’s net assets and International Fund held |
one Section 4(2) security with a value of $5,992,114 representing 4.9% of the Fund’s |
net assets. These securities are valued as set forth in Note 1A. |
5. High Yield Credit Risk—The investments of Fund For Income in high yield se- |
curities 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. |
6. Forward Currency Contracts and Foreign Exchange Contracts—Forward |
currency contracts and foreign exchange contracts are obligations to purchase or sell |
a specific currency for an agreed-upon price at a future date. When a Fund purchases |
or sells foreign securities it customarily enters into a forward currency contract to |
minimize foreign exchange risk between the trade date and the settlement date of such |
transactions. The Fund could be exposed to risk if counter parties to the contracts |
are unable to meet the terms of their contracts or if the value of the foreign currency |
changes unfavorably. Forward currency contracts and foreign exchange contracts are |
“marked-to-market” daily at the applicable translation rate and the resulting unrealized |
gains or losses are reflected in the Fund’s assets. |
The Global Fund had the following forward currency contracts outstanding at |
March 31, 2008: |
Contracts to Buy | Unrealized | |||||||
Foreign Currency | In Exchange for | Settlement Date | Gain (Loss) | |||||
1,369,907 | Euro | US $2,171,262 | 3/31/08 | US $562 | ||||
481,622 | Euro | 759,299 | 4/1/08 | (3,860) | ||||
4,138,138 | Japanese Yen | 41,679 | 4/1/08 | 104 | ||||
380,754 | Swiss Franc | 382,668 | 4/1/08 | (2,302) | ||||
669,941 | Euro | 1,056,684 | 4/2/08 | (4,877) | ||||
168,457 | Swiss Franc | 168,917 | 4/2/08 | (1,406) | ||||
$4,580,509 | $(11,779) | |||||||
117 |
Notes to Financial Statements (continued) | ||||||||
FIRST INVESTORS INCOME FUNDS | ||||||||
FIRST INVESTORS EQUITY FUNDS | ||||||||
March 31, 2008 | ||||||||
Contracts to Sell | Unrealized | |||||||
Foreign Currency | In Exchange for | Settlement Date | Gain (Loss) | |||||
82,207 | Euro | US $ 130,295 | 3/31/08 | US $(34) | ||||
535,658 | Brazilian Real | 308,505 | 4/1/08 | (2,153) | ||||
967,097 | Euro | 1,524,600 | 4/1/08 | 7,823 | ||||
226,507 | Swiss Franc | 227,645 | 4/1/08 | 1,369 | ||||
235,054 | Euro | 370,746 | 4/2/08 | 1,711 | ||||
41,536,805 | Japanese Yen | 415,776 | 4/2/08 | 1,533 | ||||
$2,977,567 | $10,249 | |||||||
Net Unrealized Loss on Forward Currency Contracts | $(1,530) | |||||||
The International Fund had the following forward currency contracts outstanding at | ||||||||
March 31, 2008: | ||||||||
Contracts to Buy | Unrealized | |||||||
Foreign Currency | In Exchange for | Settlement Date | Gain | |||||
4,715,220 | Hong Kong Dollar | US $606,011 | 4/1/08 | US $163 | ||||
Contracts to Sell | Unrealized | |||||||
Foreign Currency | In Exchange for | Settlement Date | Gain | |||||
928,589 | Mexican Peso | US $ 86,847 | 3/31/08 | US $209 | ||||
Net Unrealized Gain on Forward Currency Contracts | $372 | |||||||
118 |
The International Fund had the following foreign exchange contracts outstanding at | ||||||||
March 31, 2008: | ||||||||
Contracts to Buy | Unrealized | |||||||
Foreign Currency | In Exchange for | Settlement Date | Gain | |||||
351,000,000 | Japanese Yen | US $2,977,781 | 5/12/08 | US $ 548,617 | ||||
8,310,000 | Swiss Franc | 7,020,123 | 5/13/08 | 1,381,879 | ||||
3,330,000 | Australian Dollar | 2,942,721 | 6/13/08 | 97,070 | ||||
6,187,000 | British Pound | 12,107,217 | 6/13/08 | 189,560 | ||||
9,170,000 | Euro | 13,474,581 | 6/13/08 | 1,055,834 | ||||
11,490,000 | Swiss Franc | 10,606,186 | 6/13/08 | 1,011,022 | ||||
6,233,000 | British Pound | 12,352,871 | 8/11/08 | 35,331 | ||||
8,650,000 | Euro | 12,670,953 | 8/11/08 | 1,035,492 | ||||
7,100,000 | Euro | 11,124,280 | 9/22/08 | 126,096 | ||||
6,120,000 | Swiss Franc | 6,170,288 | 9/22/08 | 17,468 | ||||
$91,447,001 | $5,498,369 | |||||||
Contracts to Sell | Unrealized | |||||||
Foreign Currency | In Exchange for | Settlement Date | Gain (Loss) | |||||
351,000,000 | Japanese Yen | US $ 3,053,627 | 5/12/08 | US $ (472,770) | ||||
8,310,000 | Swiss Franc | 6,999,078 | 5/13/08 | (1,402,923) | ||||
3,330,000 | Australian Dollar | 2,877,520 | 6/13/08 | (162,272) | ||||
6,187,000 | British Pound | 12,506,419 | 6/13/08 | 209,643 | ||||
9,170,000 | Euro | 13,433,981 | 6/13/08 | (1,096,434) | ||||
11,490,000 | Swiss Franc | 10,163,644 | 6/13/08 | (1,453,564) | ||||
6,233,000 | British Pound | 11,976,336 | 8/11/08 | (411,867) | ||||
8,650,000 | Euro | 12,490,687 | 8/11/08 | (1,215,758) | ||||
6,770,000 | British Pound | 13,253,020 | 9/22/08 | (202,480) | ||||
7,100,000 | Euro | 10,979,440 | 9/22/08 | (270,936) | ||||
6,120,000 | Swiss Franc | 6,098,655 | 9/22/08 | (89,101) | ||||
$103,832,407 | $(6,568,462) | |||||||
Net Unrealized Loss on Foreign Exchange Contracts | $(1,070,093) | |||||||
119 |
Notes to Financial Statements (continued) |
FIRST INVESTORS INCOME FUNDS |
FIRST INVESTORS EQUITY FUNDS |
March 31, 2008 |
7. Capital—The Trusts are authorized to issue an unlimited number of shares of benefi- |
cial 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 |
two classes of shares, Class A shares and Class B shares (each, a “Class”). 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 term and conditions except that |
expenses allocated to a Class may be borne solely by that Class as determined by the |
Trustees and a Class may have exclusive voting rights with respect to matters affecting |
only that Class. Cash Management Fund’s Class A and Class B 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 FIC as underwriter of the Trusts. The Class A and Class |
B 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 |
5.75% of the amount invested and together with the Class B shares are subject to distri- |
bution 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. Realized and unrealized gains or losses, investment |
income and expenses (other than distribution plan fees) are allocated daily to each class |
of shares based upon the relative proportion of net assets to each class. |
8. Reorganizations—On August 10, 2007, First Investors Blue Chip Fund (“Blue |
Chip Fund”) acquired all of the net assets of the First Investors Focused Equity |
Fund (“Focused Equity Fund”) in connection with a tax-free reorganization that |
was approved by the Equity Funds’ Board of Trustees. The Blue Chip Fund issued |
1,728,265 Class A shares and 230,867 Class B shares to the Focused Equity Fund in |
connection with the reorganization. In return, it received net assets of $47,523,380 |
from the Focused Equity Fund (which included $1,253,787 of Unrealized apprecia- |
tion and $11,500,588 of accumulated net realized losses). The Blue Chip Fund’s |
shares were issued at their current net asset values as of the date of the reorganiza- |
tion. The aggregate net assets of the Blue Chip Fund and Focused Equity Fund |
immediately before the acquisition were $549,166,656 consisting of Blue Chip Fund |
$501,643,276 ($462,090,636 Class A and $39,552,640 Class B) and Focused Equity |
Fund $47,523,380 ($42,266,488 Class A and $5,256,892 Class B), respectively. |
120 |
9. New Accounting Pronouncements—In September 2006, the FASB issued State- |
ment on Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measure- |
ments.” This standard establishes a single authoritative definition of fair value, sets out |
a framework for measuring fair value and requires additional disclosures about fair val- |
ue measurements. SFAS No. 157 applies to fair value measurements already required |
or permitted by existing standards. SFAS No. 157 is effective for financial statements |
issued for fiscal years beginning after November 15, 2007 and interim periods within |
those fiscal years. The changes to current generally accepted accounting principles for |
the application of this Statement relate to the definition of fair value, the methods used |
to measure fair value, and the expanded disclosures about fair value measurements. As |
of March 31, 2008, FIMCO does not believe the adoption of SFAS No. 157 will impact |
the financial statement amounts of the Funds, however, additional disclosures may be |
required about the inputs used to develop the measurements and the effect of certain of |
the measurements on changes in net assets for the period. |
121 |
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, except as otherwise indicated. | ||||||||||||||||||||||||||||||||||
P E R S H A R E D A T A | R A T I O S / S U P P L E M E N T A L D A T A | |||||||||||||||||||||||||||||||||
Less Distributions | Ratio to Average Net | |||||||||||||||||||||||||||||||||
Investment Operations | from | Ratio to Average Net | Assets Before Expenses | |||||||||||||||||||||||||||||||
Net Asset | Net Realized | Net Asset | Assets** | Waived or Assumed | ||||||||||||||||||||||||||||||
Value, | Net | and Unrealized | Total from | Net | Net | Value, | Net Assets | Net Expenses | Net Expenses | Net | Net | Portfolio | ||||||||||||||||||||||
Beginning | Investment | Gain (Loss) on | Investment | Investment | Realized | Total | End of | Total | End of Period | After Fee | Before Fee | Investment | Investment | Turnover | ||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Gain | Distributions | Period | Return | * | (in millions) | Credits | Credits | (a) | Income | Expenses | Income (Loss) | Rate | |||||||||||||||||
CASH MANAGEMENT FUND | ||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||
2003 | $ 1.00 | $.006 | — | $.006 | $.006 | — | $.006 | $ 1.00 | .62 | % | $179 | .78 | % | .78 | % | .62 | % | .97 | % | .43 | % | — | ||||||||||||
2004 | 1.00 | .005 | — | .005 | .005 | — | .005 | 1.00 | .50 | 171 | .70 | .70 | .50 | 1.05 | .15 | — | ||||||||||||||||||
2005 | 1.00 | .019 | — | .019 | .019 | — | .019 | 1.00 | 1.94 | 162 | .70 | .71 | 1.90 | 1.04 | 1.56 | — | ||||||||||||||||||
2006 | 1.00 | .038 | — | .038 | .038 | — | .038 | 1.00 | 3.89 | 200 | .78 | .79 | 3.85 | 1.01 | 3.62 | — | ||||||||||||||||||
2007 | 1.00 | .045 | — | .045 | .045 | — | .045 | 1.00 | 4.59 | 218 | .80 | .81 | 4.51 | .93 | 4.38 | — | ||||||||||||||||||
2008(b) | 1.00 | .018 | — | .018 | .018 | — | .018 | 1.00 | 1.79 | 250 | .80 | † | .80 | † | 3.53 | † | .94 | † | 3.39† | — | ||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||
2003 | 1.00 | .001 | — | .001 | .001 | — | .001 | 1.00 | .05 | 6 | 1.34 | 1.34 | .06 | 1.53 | (.13) | — | ||||||||||||||||||
2004 | 1.00 | — | — | — | — | — | — | 1.00 | — | 5 | 1.20 | 1.20 | — | 1.55 | (.35) | — | ||||||||||||||||||
2005 | 1.00 | .012 | — | .012 | .012 | — | .012 | 1.00 | 1.18 | 3 | 1.45 | 1.46 | 1.15 | 1.79 | .81 | — | ||||||||||||||||||
2006 | 1.00 | .031 | — | .031 | .031 | — | .031 | 1.00 | 3.11 | 3 | 1.53 | 1.54 | 3.10 | 1.76 | 2.87 | — | ||||||||||||||||||
2007 | 1.00 | .037 | — | .037 | .037 | — | .037 | 1.00 | 3.81 | 2 | 1.55 | 1.56 | 3.76 | 1.68 | 3.63 | — | ||||||||||||||||||
2008(b) | 1.00 | .014 | — | .014 | .014 | — | .014 | 1.00 | 1.42 | 3 | 1.55 | † | 1.55 | † | 2.78 | † | 1.69 | † | 2.64 | † | — | |||||||||||||
GOVERNMENT FUND | ||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||
2003 | $11.50 | $ .54 | $(.19) | $ .35 | $ .54 | — | $ .54 | $11.31 | 3.08 | % | $184 | 1.10 | % | 1.10 | % | 4.69 | % | 1.58 | % | 4.21 | % | 65 | % | |||||||||||
2004 | 11.31 | .51 | (.18) | .33 | .51 | — | .51 | 11.13 | 3.01 | 179 | 1.10 | 1.10 | 4.59 | 1.56 | 4.13 | 60 | ||||||||||||||||||
2005 | 11.13 | .50 | (.25) | .25 | .50 | — | .50 | 10.88 | 2.25 | 182 | 1.10 | 1.11 | 4.49 | 1.57 | 4.02 | 48 | ||||||||||||||||||
2006 | 10.88 | .45 | (.13) | .32 | .49 | — | .49 | 10.71 | 3.02 | 186 | 1.10 | 1.11 | 4.14 | 1.35 | 3.89 | 43 | ||||||||||||||||||
2007 | 10.71 | .49 | (.06) | .43 | .50 | — | .50 | 10.64 | 4.07 | 199 | 1.10 | 1.11 | 4.62 | 1.24 | 4.48 | 23 | ||||||||||||||||||
2008(b) | 10.64 | .24 | .30 | .54 | .24 | — | .24 | 10.94 | 5.14 | 217 | 1.10 | † | 1.11 | † | 4.47 | † | 1.24 | † | 4.34 | † | 24 | |||||||||||||
Class B | ||||||||||||||||||||||||||||||||||
2003 | 11.49 | .45 | (.19) | .26 | .45 | — | .45 | 11.30 | 2.33 | 21 | 1.85 | 1.85 | 3.94 | 2.33 | 3.46 | 65 | ||||||||||||||||||
2004 | 11.30 | .43 | (.18) | .25 | .43 | — | .43 | 11.12 | 2.25 | 17 | 1.85 | 1.85 | 3.84 | 2.31 | 3.38 | 60 | ||||||||||||||||||
2005 | 11.12 | .41 | (.25) | .16 | .41 | — | .41 | 10.87 | 1.48 | 15 | 1.85 | 1.86 | 3.74 | 2.32 | 3.27 | 48 | ||||||||||||||||||
2006 | 10.87 | .36 | (.12) | .24 | .40 | — | .40 | 10.71 | 2.32 | 13 | 1.85 | 1.86 | 3.39 | 2.10 | 3.14 | 43 | ||||||||||||||||||
2007 | 10.71 | .41 | (.06) | .35 | .42 | — | .42 | 10.64 | 3.33 | 12 | 1.82 | 1.83 | 3.90 | 1.96 | 3.76 | 23 | ||||||||||||||||||
2008(b) | 10.64 | .20 | .31 | .51 | .21 | — | .21 | 10.94 | 4.77 | 12 | 1.80 | † | 1.81 | † | 3.77 | † | 1.94 | † | 3.64 | † | 24 | |||||||||||||
122 | 123 |
Financial Highlights (continued) | ||||||||||||||||||||||||||||||||||||
FIRST INVESTORS INCOME FUNDS | ||||||||||||||||||||||||||||||||||||
P E R S H A R E D A T A | R A T I O S / S U P P L E M E N T A L D A T A | |||||||||||||||||||||||||||||||||||
Less Distributions | Ratio to Average Net | |||||||||||||||||||||||||||||||||||
Investment Operations | from | Ratio to Average Net | Assets Before Expenses | |||||||||||||||||||||||||||||||||
Net Asset | Net Realized | Net Asset | Assets** | Waived or Assumed | ||||||||||||||||||||||||||||||||
Value, | Net | and Unrealized | Total from | Net | Net | Value, | Net Assets | Net Expenses | Net Expenses | Net | Net | Portfolio | ||||||||||||||||||||||||
Beginning | Investment | Gain (Loss) on | Investment | Investment | Realized | Total | End of | Total | End of Period | After Fee | Before Fee | Investment | Investment | Turnover | ||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Gain | Distributions | Period | Return | * | (in millions) | Credits | Credits | (a) | Income | Expenses | Income | Rate | |||||||||||||||||||
INVESTMENT GRADE FUND | ||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
2003 | $ 9.96 | $.51 | $ .35 | $ .86 | $.54 | — | $.54 | $10.28 | 8.94 | % | $144 | 1.10 | % | 1.10 | % | 4.85 | % | 1.35 | % | 4.60 | % | 6 | % | |||||||||||||
2004 | 10.28 | .47 | (.11) | .36 | .53 | — | .53 | 10.11 | 3.57 | 170 | 1.10 | 1.10 | 4.49 | 1.32 | 4.27 | 9 | ||||||||||||||||||||
2005 | 10.11 | .45 | (.28) | .17 | .52 | — | .52 | 9.76 | 1.70 | 203 | 1.10 | 1.11 | 4.21 | 1.31 | 4.00 | 11 | ||||||||||||||||||||
2006 | 9.76 | .44 | (.19) | .25 | .49 | — | .49 | 9.52 | 2.69 | 231 | 1.10 | 1.11 | 4.35 | 1.27 | 4.18 | 74 | ||||||||||||||||||||
2007 | 9.52 | .45 | (.09) | .36 | .46 | — | .46 | 9.42 | 3.91 | 271 | 1.10 | 1.11 | 4.58 | 1.22 | 4.46 | 50 | ||||||||||||||||||||
2008(b) | 9.42 | .23 | .05 | .28 | .23 | — | .23 | 9.47 | 3.02 | 295 | 1.10 | † | 1.10 | † | 4.60 | † | 1.24 | † | 4.46 | † | 59 | |||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||
2003 | 9.96 | .43 | .36 | .79 | .47 | — | .47 | 10.28 | 8.17 | 31 | 1.85 | 1.85 | 4.10 | 2.10 | 3.85 | 6 | ||||||||||||||||||||
2004 | 10.28 | .38 | (.11) | .27 | .45 | — | .45 | 10.10 | 2.74 | 30 | 1.85 | 1.85 | 3.74 | 2.07 | 3.52 | 9 | ||||||||||||||||||||
2005 | 10.10 | .34 | (.24) | .10 | .45 | — | .45 | 9.75 | .97 | 28 | 1.85 | 1.86 | 3.46 | 2.06 | 3.25 | 11 | ||||||||||||||||||||
2006 | 9.75 | .30 | (.12) | .18 | .42 | — | .42 | 9.51 | 1.92 | 24 | 1.85 | 1.86 | 3.60 | 2.02 | 3.43 | 74 | ||||||||||||||||||||
2007 | 9.51 | .35 | (.05) | .30 | .40 | — | .40 | 9.41 | 3.17 | 22 | 1.82 | 1.83 | 3.86 | 1.94 | 3.74 | 50 | ||||||||||||||||||||
2008(b) | 9.41 | .18 | .07 | .25 | .20 | — | .20 | 9.46 | 2.67 | 22 | 1.80 | † | 1.80 | † | 3.90 | † | 1.94 | † | 3.76 | † | 59 | |||||||||||||||
INCOME FUND | ||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
2003 | $ 2.64 | $.24 | $ .41 | $ .65 | $.24 | — | $.24 | $ 3.05 | 25.78 | % | $509 | 1.34 | % | 1.34 | % | 8.38 | % | N/A | N/A | 31 | % | |||||||||||||||
2004 | 3.05 | .23 | .13 | .36 | .23 | — | .23 | 3.18 | 12.06 | 561 | 1.29 | 1.29 | 7.35 | N/A | N/A | 37 | ||||||||||||||||||||
2005 | 3.18 | .23 | (.11) | .12 | .23 | — | .23 | 3.07 | 3.79 | 571 | 1.30 | 1.30 | 7.33 | N/A | N/A | 39 | ||||||||||||||||||||
2006 | 3.07 | .22 | (.06) | .16 | .22 | — | .22 | 3.01 | 5.40 | 555 | 1.30 | 1.31 | 7.28 | N/A | N/A | 28 | ||||||||||||||||||||
2007 | 3.01 | .21 | (.02) | .19 | .21 | — | .21 | 2.99 | 6.38 | 563 | 1.28 | 1.29 | 7.00 | N/A | N/A | 34 | ||||||||||||||||||||
2008(b) | 2.99 | .10 | (.26) | (.16) | .11 | — | .11 | 2.72 | (5.61) | 511 | 1.31 | † | 1.31 | † | 7.32 | † | N/A | N/A | 8 | |||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||
2003 | 2.63 | .23 | .41 | .64 | .22 | — | .22 | 3.05 | 25.24 | 37 | 2.04 | 2.04 | 7.68 | N/A | N/A | 31 | ||||||||||||||||||||
2004 | 3.05 | .21 | .12 | .33 | .20 | — | .20 | 3.18 | 11.22 | 40 | 1.99 | 1.99 | 6.65 | N/A | N/A | 37 | ||||||||||||||||||||
2005 | 3.18 | .21 | (.13) | .08 | .20 | — | .20 | 3.06 | 2.68 | 37 | 2.00 | 2.00 | 6.63 | N/A | N/A | 39 | ||||||||||||||||||||
2006 | 3.06 | .20 | (.06) | .14 | .20 | — | .20 | 3.00 | 4.64 | 31 | 2.00 | 2.01 | 6.58 | N/A | N/A | 28 | ||||||||||||||||||||
2007 | 3.00 | .19 | (.01) | .18 | .19 | — | .19 | 2.99 | 5.99 | 25 | 1.98 | 1.99 | 6.30 | N/A | N/A | 34 | ||||||||||||||||||||
2008(b) | 2.99 | .09 | (.27) | (.18) | .09 | — | .09 | 2.72 | (5.96) | 20 | 2.01 | † | 2.01 | † | 6.62 | † | N/A | N/A | 8 | |||||||||||||||||
* | Calculated without sales charges. | |||||||||||||||||||||||||||||||||||
** | Net of expenses waived or assumed (Note 3). | |||||||||||||||||||||||||||||||||||
† | Annualized. | |||||||||||||||||||||||||||||||||||
(a) | The ratios do not include a reduction of expenses from cash balances maintained with the custodian | |||||||||||||||||||||||||||||||||||
or from brokerage service arrangements (Note 1I). | ||||||||||||||||||||||||||||||||||||
(b) | For the period October 1, 2007 to March 31, 2008. | |||||||||||||||||||||||||||||||||||
124 | See notes to financial statements | 125 |
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, except as otherwise indicated. | ||||||||||||||||||||||||||||||||||
P E R S H A R E D A T A | R A T I O S / S U P P L E M E N T A L D A T A | |||||||||||||||||||||||||||||||||
Less Distributions | Ratio to Average Net | |||||||||||||||||||||||||||||||||
Investment Operations | from | Ratio to Average Net | Assets Before Expenses | |||||||||||||||||||||||||||||||
Net Asset | Net Realized | Net Asset | Assets** | Waived or Assumed | ||||||||||||||||||||||||||||||
Value, | Net | and Unrealized | Total from | Net | Net | Value, | Net Assets | Net Expenses | Net Expenses | Net | Net | Portfolio | ||||||||||||||||||||||
Beginning | Investment | Gain (Loss) on | Investment | Investment | Realized | Total | End of | Total | End of Period | After Fee | Before Fee | Investment | Investment | Turnover | ||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Gain | Distributions | Period | Return | * | (in millions) | Credits | Credits | (a) | Income | Expenses | Income | Rate | |||||||||||||||||
TOTAL RETURN FUND | ||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||
2003 | $10.59 | $.20 | $ 1.44 | $1.64 | $.21 | $ — | $.21 | $12.02 | 15.58 | % | $177 | 1.52 | % | 1.52 | % | 1.72 | % | 1.77 | % | 1.47 | % | 80 | % | |||||||||||
2004 | 12.02 | .20 | .96 | 1.16 | .20 | — | .20 | 12.98 | 9.65 | 231 | 1.44 | 1.44 | 1.60 | 1.65 | 1.39 | 41 | ||||||||||||||||||
2005 | 12.98 | .23 | .97 | 1.20 | .25 | — | .25 | 13.93 | 9.25 | 281 | 1.39 | 1.40 | 1.69 | 1.57 | 1.52 | 52 | ||||||||||||||||||
2006 | 13.93 | .23 | .64 | .87 | .23 | — | .23 | 14.57 | 6.24 | 312 | 1.37 | 1.38 | 1.63 | 1.44 | 1.57 | 57 | ||||||||||||||||||
2007 | 14.57 | .29 | 1.40 | 1.69 | .30 | .10 | .40 | 15.86 | 11.68 | 355 | 1.32 | 1.33 | 2.05 | N/A | N/A | 40 | ||||||||||||||||||
2008(b) | 15.86 | .19 | (1.18) | (.99) | .24 | .28 | .52 | 14.35 | (6.45) | 330 | 1.34 | † | 1.34 | † | 2.46 | † | N/A | N/A | 31 | |||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||
2003 | 10.46 | .09 | 1.44 | 1.53 | .13 | — | .13 | 11.86 | 14.71 | 28 | 2.22 | 2.22 | 1.02 | 2.47 | .77 | 80 | ||||||||||||||||||
2004 | 11.86 | .12 | .94 | 1.06 | .12 | — | .12 | 12.80 | 8.92 | 36 | 2.14 | 2.14 | .90 | 2.35 | .69 | 41 | ||||||||||||||||||
2005 | 12.80 | .13 | .95 | 1.08 | .15 | — | .15 | 13.73 | 8.49 | 38 | 2.09 | 2.10 | .99 | 2.27 | .82 | 52 | ||||||||||||||||||
2006 | 13.73 | .13 | .63 | .76 | .13 | — | .13 | 14.36 | 5.53 | 36 | 2.07 | 2.08 | .93 | 2.14 | .87 | 57 | ||||||||||||||||||
2007 | 14.36 | .14 | 1.42 | 1.56 | .19 | .10 | .29 | 15.63 | 10.93 | 34 | 2.02 | 2.03 | 1.35 | N/A | N/A | 40 | ||||||||||||||||||
2008(b) | 15.63 | .13 | (1.17) | (1.04) | .18 | .28 | .46 | 14.13 | (6.81) | 29 | 2.04 | † | 2.04 | † | 1.76 | † | N/A | N/A | 31 | |||||||||||||||
VALUE FUND | ||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||
2003 | $ 4.26 | $.08 | $ .73 | .81 | $.08 | — | $.08 | $ 4.99 | 19.04 | % | $126 | 1.67 | % | 1.67 | % | 1.69 | % | N/A | N/A | 92 | % | |||||||||||||
2004 | 4.99 | .07 | .96 | 1.03 | .07 | — | .07 | 5.95 | 20.57 | 185 | 1.48 | 1.48 | 1.21 | N/A | N/A | 11 | ||||||||||||||||||
2005 | 5.95 | .08 | .65 | .73 | .07 | — | .07 | 6.61 | 12.31 | 267 | 1.42 | 1.43 | 1.31 | N/A | N/A | 17 | ||||||||||||||||||
2006 | 6.61 | .09 | .78 | .87 | .08 | — | .08 | 7.40 | 13.22 | 337 | 1.39 | 1.40 | 1.29 | N/A | N/A | 15 | ||||||||||||||||||
2007 | 7.40 | .10 | .74 | .84 | .10 | — | .10 | 8.14 | 11.36 | 414 | 1.32 | 1.33 | 1.34 | N/A | N/A | 8 | ||||||||||||||||||
2008(b) | 8.14 | .06 | (1.03) | (.97) | .07 | — | .07 | 7.10 | (12.00) | 356 | 1.35 | † | 1.35 | † | 1.58 | † | N/A | N/A | 9 | |||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||
2003 | 4.20 | .05 | .71 | .76 | .04 | — | .04 | 4.92 | 18.26 | 19 | 2.37 | 2.37 | .99 | N/A | N/A | 92 | ||||||||||||||||||
2004 | 4.92 | .03 | .95 | .98 | .03 | — | .03 | 5.87 | 19.91 | 23 | 2.18 | 2.18 | .51 | N/A | N/A | 11 | ||||||||||||||||||
2005 | 5.87 | .04 | .63 | .67 | .03 | — | .03 | 6.51 | 11.43 | 27 | 2.12 | 2.13 | .61 | N/A | N/A | 17 | ||||||||||||||||||
2006 | 6.51 | .04 | .76 | .80 | .03 | — | .03 | 7.28 | 12.34 | 28 | 2.09 | 2.10 | .59 | N/A | N/A | 15 | ||||||||||||||||||
2007 | 7.28 | .05 | .72 | .77 | .04 | — | .04 | 8.01 | 10.64 | 27 | 2.02 | 2.03 | .64 | N/A | N/A | 8 | ||||||||||||||||||
2008(b) | 8.01 | .03 | (1.01) | (.98) | .04 | — | .04 | 6.99 | (12.27) | 21 | 2.05 | † | 2.05 | † | .88 | † | N/A | N/A | 9 | |||||||||||||||
126 | 127 |
Financial Highlights (continued) | ||||||||||||||||||||||||||||||||||
FIRST INVESTORS EQUITY FUNDS | ||||||||||||||||||||||||||||||||||
P E R S H A R E D A T A | 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 | ||||||||||||||||||||||||||||||||||
Less Distributions | Ratio to Average Net | Assets Before Expenses | ||||||||||||||||||||||||||||||||
Investment Operations | from | Assets** | Waived or Assumed | |||||||||||||||||||||||||||||||
Net Asset | Net | Net Realized | Net Asset | |||||||||||||||||||||||||||||||
Value, | Investment | and Unrealized | Total from | Net | Net | Value, | Net Assets | Net Expenses | Net Expenses | Net | Net | Portfolio | ||||||||||||||||||||||
Beginning | Income | Gain (Loss) on | Investment | Investment | Realized | Total | End of | Total | End of Period | After Fee | Before Fee | Investment | Investment | Turnover | ||||||||||||||||||||
of Period | (Loss) | Investments | Operations | Income | Gain | Distributions | Period | Return | * | (in millions) | Credits | Credits | (a) | Income (Loss) | Expenses | Income (Loss) | Rate | |||||||||||||||||
BLUE CHIP FUND | ||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||
2003 | $14.56 | $ — | $ 2.58 | $ 2.58 | $ — | — | $ — | $17.14 | 17.72 | % | $383 | 1.56 | % | 1.56 | % | .00 | % | 1.68 | % | (.12) | % | 111 | % | |||||||||||
2004 | 17.14 | .01 | 1.54 | 1.55 | — | — | — | 18.69 | 9.04 | 414 | 1.47 | 1.47 | .03 | 1.58 | (.08) | 94 | ||||||||||||||||||
2005 | 18.69 | .10 | 1.91 | 2.01 | .10 | — | .10 | 20.60 | 10.76 | 421 | 1.45 | 1.45 | .54 | 1.56 | .43 | 55 | ||||||||||||||||||
2006 | 20.60 | .10 | 1.82 | 1.92 | .07 | — | .07 | 22.45 | 9.31 | 438 | 1.46 | 1.46 | .47 | 1.50 | .43 | 6 | ||||||||||||||||||
2007 | 22.45 | .15 | 3.17 | 3.32 | .13 | — | .13 | 25.64 | 14.81 | 526 | 1.39 | 1.39 | .65 | N/A | N/A | 3 | ||||||||||||||||||
2008(b) | 25.64 | .10 | (3.30) | (3.20) | .11 | — | .11 | 22.33 | (12.50) | 445 | 1.39† | 1.39† | .83† | N/A | N/A | 3 | ||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||
2003 | 13.91 | (.11) | 2.46 | 2.35 | — | — | — | 16.26 | 16.90 | 62 | 2.26 | 2.26 | (.70) | 2.38 | (.82) | 111 | ||||||||||||||||||
2004 | 16.26 | (.13) | 1.48 | 1.35 | — | — | — | 17.61 | 8.30 | 61 | 2.17 | 2.17 | (.67) | 2.28 | (.78) | 94 | ||||||||||||||||||
2005 | 17.61 | .09 | 1.67 | 1.76 | .07 | — | .07 | 19.30 | 9.98 | 52 | 2.15 | 2.15 | (.16) | 2.26 | (.27) | 55 | ||||||||||||||||||
2006 | 19.30 | (.08) | 1.72 | 1.64 | — | — | — | 20.94 | 8.50 | 44 | 2.16 | 2.16 | (.23) | 2.20 | (.27) | 6 | ||||||||||||||||||
2007 | 20.94 | (.06) | 3.00 | 2.94 | — | — | — | 23.88 | 14.04 | 46 | 2.09 | 2.09 | (.05) | N/A | N/A | 3 | ||||||||||||||||||
2008(b) | 23.88 | .01 | (3.06) | (3.05) | .03 | — | .03 | 20.80 | (12.78) | 34 | 2.09† | 2.09† | .13† | N/A | N/A | 3 | ||||||||||||||||||
GROWTH & INCOME FUND | ||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||
2003 | $ 8.83 | $ .04 | $ 1.85 | 1.89 | $.04 | $ — | $.04 | $10.68 | 21.49 | % | $400 | 1.52 | % | 1.52 | % | .44 | % | N/A | N/A | 70 | % | |||||||||||||
2004 | 10.68 | .06 | 1.43 | 1.49 | .03 | — | .03 | 12.14 | 13.95 | 499 | 1.42 | 1.42 | .53 | N/A | N/A | 32 | ||||||||||||||||||
2005 | 12.14 | .09 | 1.54 | 1.63 | .10 | — | .10 | 13.67 | 13.43 | 597 | 1.38 | 1.38 | .72 | N/A | N/A | 42 | ||||||||||||||||||
2006 | 13.67 | .05 | 1.05 | 1.10 | .05 | — | .05 | 14.72 | 8.06 | 671 | 1.37 | 1.37 | .35 | N/A | N/A | 34 | ||||||||||||||||||
2007 | 14.72 | .08 | 2.37 | 2.45 | .07 | .24 | .31 | 16.86 | 16.78 | 808 | 1.32 | 1.32 | .54 | N/A | N/A | 23 | ||||||||||||||||||
2008(b) | 16.86 | .09 | (2.31) | (2.22) | .09 | .21 | .30 | 14.34 | (13.37) | 692 | 1.35† | 1.35† | 1.16† | N/A | N/A | 11 | ||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||
2003 | 8.51 | (.03) | 1.78 | 1.75 | — | — | — | 10.26 | 20.56 | 76 | 2.22 | 2.22 | (.26) | N/A | N/A | 70 | ||||||||||||||||||
2004 | 10.26 | (.03) | 1.39 | 1.36 | — | — | — | 11.62 | 13.26 | 83 | 2.12 | 2.12 | (.17) | N/A | N/A | 32 | ||||||||||||||||||
2005 | 11.62 | (.04) | 1.51 | 1.47 | .03 | — | .03 | 13.06 | 12.65 | 82 | 2.08 | 2.08 | .02 | N/A | N/A | 42 | ||||||||||||||||||
2006 | 13.06 | (.12) | 1.07 | .95 | — | — | — | 14.01 | 7.28 | 72 | 2.07 | 2.07 | (.35) | N/A | N/A | 34 | ||||||||||||||||||
2007 | 14.01 | (.13) | 2.35 | 2.22 | — | .24 | .24 | 15.99 | 15.98 | 67 | 2.02 | 2.02 | (.16) | N/A | N/A | 23 | ||||||||||||||||||
2008(b) | 15.99 | .03 | (2.19) | (2.16) | .04 | .21 | .25 | 13.58 | (13.68) | 52 | 2.05† | 2.05† | .46† | N/A | N/A | 11 | ||||||||||||||||||
128 | 129 |
Financial Highlights (continued) | ||||||||||||||||||||||||||||||||||
FIRST INVESTORS EQUITY FUNDS | ||||||||||||||||||||||||||||||||||
P E R S H A R E D A T A | R A T I O S / S U P P L E M E N T A L D A T A | |||||||||||||||||||||||||||||||||
Less Distributions | Ratio to Average Net | |||||||||||||||||||||||||||||||||
Investment Operations | from | Ratio to Average Net | Assets Before Expenses | |||||||||||||||||||||||||||||||
Net Asset | Net | Net Realized | Net Asset | Assets** | Waived or Assumed | |||||||||||||||||||||||||||||
Value, | Investment | and Unrealized | Total from | Net | Net | Value, | Net Assets | Net Expenses | Net Expenses | Net | Net | Portfolio | ||||||||||||||||||||||
Beginning | Income | Gain (Loss) on | Investment | Investment | Realized | Total | End of | Total | End of Period | After Fee | Before Fee | Investment | Investment | Turnover | ||||||||||||||||||||
of Period | (Loss) | Investments | Operations | Income | Gain | Distributions | Period | Return | * | (in millions) | Credits | Credits | (a) | Income (Loss) | Expenses | Income (Loss) | Rate | |||||||||||||||||
GLOBAL FUND | ||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||
2003 | $ 4.24 | $(.01) | $ .93 | $ .92 | $ — | $ — | $ — | $ 5.16 | 21.70 | % | $192 | 1.98 | % | 1.98 | % | (.19) | % | N/A | N/A | 112 | % | |||||||||||||
2004 | 5.16 | (.01) | .78 | .77 | — | — | — | 5.93 | 14.92 | 209 | 1.86 | 1.86 | (.13) | N/A | N/A | 105 | ||||||||||||||||||
2005 | 5.93 | — | 1.13 | 1.13 | — | — | — | 7.06 | 19.06 | 239 | 1.78 | 1.78 | .05 | N/A | N/A | 104 | ||||||||||||||||||
2006 | 7.06 | .01 | .71 | .72 | .02 | — | .02 | 7.76 | 10.15 | 260 | 1.77 | 1.77 | .14 | N/A | N/A | 105 | ||||||||||||||||||
2007 | 7.76 | — | 1.87 | 1.87 | .05 | .76 | .81 | 8.82 | 26.43 | 323 | 1.70 | 1.70 | (.07) | 1.70 | % | (.07) | % | 134 | ||||||||||||||||
2008(b) | 8.82 | (.01) | (.71) | (.72) | .05 | 1.08 | 1.13 | 6.97 | (9.62) | 297 | 1.69 | † | 1.69 | † | (.28) | † | 1.72 | † | (.31) | † | 60 | |||||||||||||
Class B | ||||||||||||||||||||||||||||||||||
2003 | 4.00 | (.04) | .88 | .84 | — | — | — | 4.84 | 21.00 | 15 | 2.68 | 2.68 | (.89) | N/A | N/A | 112 | ||||||||||||||||||
2004 | 4.84 | (.05) | .73 | .68 | — | — | — | 5.52 | 14.05 | 15 | 2.56 | 2.56 | (.83) | N/A | N/A | 105 | ||||||||||||||||||
2005 | 5.52 | (.04) | 1.04 | 1.00 | — | — | — | 6.52 | 18.12 | 14 | 2.48 | 2.48 | (.65) | N/A | N/A | 104 | ||||||||||||||||||
2006 | 6.52 | (.05) | .67 | .62 | — | — | — | 7.14 | 9.51 | 14 | 2.47 | 2.47 | (.56) | N/A | N/A | 105 | ||||||||||||||||||
2007 | 7.14 | (.16) | 1.81 | 1.65 | .05 | .76 | .81 | 7.98 | 25.57 | 14 | 2.40 | 2.40 | (.77) | 2.40 | (.77) | 134 | ||||||||||||||||||
2008(b) | 7.98 | (.02) | (.65) | (.67) | .05 | 1.08 | 1.13 | 6.18 | (10.05) | 12 | 2.39 | † | 2.39 | † | (.98) | † | 2.42 | † | (1.01) | † | 60 | |||||||||||||
SELECT GROWTH FUND†† | ||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||
2003 | $ 5.33 | $(.06) | $ 1.48 | $ 1.42 | — | $ — | $ — | $ 6.75 | 26.64 | % | $ 77 | 1.94 | % | 1.94 | % | (1.15) | % | 1.96 | % | (1.17) | % | 126 | % | |||||||||||
2004 | 6.75 | (.07) | 1.12 | 1.05 | — | — | — | 7.80 | 15.56 | 130 | 1.68 | 1.68 | (1.12) | N/A | N/A | 75 | ||||||||||||||||||
2005 | 7.80 | (.05) | 1.07 | 1.02 | — | — | — | 8.82 | 13.08 | 169 | 1.58 | 1.58 | (.66) | N/A | N/A | 91 | ||||||||||||||||||
2006 | 8.82 | (.06) | .50 | .44 | — | — | — | 9.26 | 4.99 | 195 | 1.53 | 1.53 | (.65) | N/A | N/A | 107 | ||||||||||||||||||
2007 | 9.26 | (.04) | 1.75 | 1.71 | — | .76 | .76 | 10.21 | 19.81 | 243 | 1.47 | 1.47 | (.46) | N/A | N/A | 169 | ||||||||||||||||||
2008(b) | 10.21 | (.02) | (1.27) | (1.29) | — | 1.42 | 1.42 | 7.50 | (14.61) | 223 | 1.44 | † | 1.45 | † | (.47) | † | N/A | N/A | 45 | |||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||
2003 | 5.26 | (.09) | 1.44 | 1.35 | — | — | — | 6.61 | 25.67 | 14 | 2.64 | 2.64 | (1.85) | 2.66 | (1.87) | 126 | ||||||||||||||||||
2004 | 6.61 | (.12) | 1.10 | .98 | — | — | — | 7.59 | 14.83 | 20 | 2.38 | 2.38 | (1.82) | N/A | N/A | 75 | ||||||||||||||||||
2005 | 7.59 | (.11) | 1.04 | .93 | — | — | — | 8.52 | 12.25 | 23 | 2.28 | 2.28 | (1.36) | N/A | N/A | 91 | ||||||||||||||||||
2006 | 8.52 | (.12) | .49 | .37 | — | — | — | 8.89 | 4.34 | 23 | 2.23 | 2.23 | (1.35) | N/A | N/A | 107 | ||||||||||||||||||
2007 | 8.89 | (.11) | 1.68 | 1.57 | — | .76 | .76 | 9.70 | 19.00 | 25 | 2.17 | 2.17 | (1.16) | N/A | N/A | 169 | ||||||||||||||||||
2008(b) | 9.70 | (.05) | (1.20) | (1.25) | — | 1.42 | 1.42 | 7.03 | (15.00) | 21 | 2.14 | † | 2.15 | † | (1.17) | † | N/A | N/A | 45 | |||||||||||||||
130 | 131 |
Financial Highlights (continued) | ||||||||||||||||||||||||||||||||||
FIRST INVESTORS EQUITY FUNDS | ||||||||||||||||||||||||||||||||||
P E R S H A R E D A T A | R A T I O S / S U P P L E M E N T A L D A T A | |||||||||||||||||||||||||||||||||
Less Distributions | Ratio to Average Net | |||||||||||||||||||||||||||||||||
Investment Operations | from | Ratio to Average Net | Assets Before Expenses | |||||||||||||||||||||||||||||||
Net Asset | Net | Net Realized | Net Asset | Assets** | Waived or Assumed | |||||||||||||||||||||||||||||
Value, | Investment | and Unrealized | Total from | Net | Net | Value, | Net Assets | Net Expenses | Net Expenses | Net | Net | Portfolio | ||||||||||||||||||||||
Beginning | Income | Gain (Loss) on | Investment | Investment | Realized | Total | End of | Total | End of Period | After Fee | Before Fee | Investment | Investment | Turnover | ||||||||||||||||||||
of Period | (Loss) | Investments | Operations | Income | Gain | Distributions | Period | Return | * | (in millions) | Credits | Credits | (a) | Income (Loss) | Expenses | (Loss) | Rate | |||||||||||||||||
OPPORTUNITY FUND††† | ||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||
2003 | $15.78 | $(.12) | $ 3.52 | $ 3.40 | $ — | $ — | $ — | $19.18 | 21.55 | % | $192 | 1.73 | % | 1.73 | % | (.80) | % | 1.97 | % | (1.04) | % | 37 | % | |||||||||||
2004 | 19.18 | (.09) | 3.62 | 3.53 | — | — | — | 22.71 | 18.41 | 277 | 1.56 | 1.56 | (.46) | 1.73 | (.63) | 40 | ||||||||||||||||||
2005 | 22.71 | (.09) | 5.62 | 5.53 | — | — | — | 28.24 | 24.35 | 410 | 1.48 | 1.48 | (.39) | 1.61 | (.52) | 43 | ||||||||||||||||||
2006 | 28.24 | (.09) | .77 | .68 | — | .78 | .78 | 28.14 | 2.58 | 435 | 1.44 | 1.44 | (.33) | 1.47 | (.36) | 55 | ||||||||||||||||||
2007 | 28.14 | .16 | 4.35 | 4.51 | — | 1.33 | 1.33 | 31.32 | 16.57 | 481 | 1.38 | 1.38 | .52 | N/A | N/A | 50 | ||||||||||||||||||
2008(b) | 31.32 | .02 | (3.09) | (3.07) | .14 | 2.66 | 2.80 | 25.45 | (10.78) | 420 | 1.39 | † | 1.39 | † | .11 | † | N/A | N/A | 19 | |||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||
2003 | 14.87 | (.23) | 3.31 | 3.08 | — | — | — | 17.95 | 20.71 | 35 | 2.43 | 2.43 | (1.50) | 2.67 | (1.74) | 37 | ||||||||||||||||||
2004 | 17.95 | (.23) | 3.38 | 3.15 | — | — | — | 21.10 | 17.55 | 46 | 2.26 | 2.26 | (1.16) | 2.43 | (1.33) | 40 | ||||||||||||||||||
2005 | 21.10 | (.26) | 5.22 | 4.96 | — | — | — | 26.06 | 23.51 | 57 | 2.18 | 2.18 | (1.09) | 2.31 | (1.22) | 43 | ||||||||||||||||||
2006 | 26.06 | (.29) | .73 | .44 | — | .78 | .78 | 25.72 | 1.85 | 51 | 2.14 | 2.14 | (1.03) | 2.17 | (1.06) | 55 | ||||||||||||||||||
2007 | 25.72 | (.05) | 3.97 | 3.92 | — | 1.33 | 1.33 | 28.31 | 15.80 | 50 | 2.08 | 2.08 | (.18) | N/A | N/A | 50 | ||||||||||||||||||
2008(b) | 28.31 | (.07) | (2.76) | (2.83) | .14 | 2.66 | 2.80 | 22.68 | (11.09) | 40 | 2.09 | † | 2.09 | † | (.59) | † | N/A | N/A | 19 | |||||||||||||||
SPECIAL SITUATIONS FUND | ||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||
2003 | $12.66 | $(.17) | $ 3.14 | $ 2.97 | — | $ — | $ — | $15.63 | 23.46 | % | $169 | 1.80 | % | 1.80 | % | (1.26) | % | 2.05 | % | (1.51) | % | 111 | % | |||||||||||
2004 | 15.63 | (.18) | 1.39 | 1.21 | — | — | — | 16.84 | 7.74 | 190 | 1.63 | 1.63 | (1.08) | 1.86 | (1.31) | 119 | ||||||||||||||||||
2005 | 16.84 | (.12) | 3.72 | 3.60 | — | — | — | 20.44 | 21.38 | 224 | 1.59 | 1.60 | (.64) | 1.82 | (.86) | 112 | ||||||||||||||||||
2006 | 20.44 | .11 | 2.07 | 2.18 | — | — | — | 22.62 | 10.67 | 249 | 1.53 | 1.53 | (.49) | 1.73 | (.69) | 48 | ||||||||||||||||||
2007 | 22.62 | (.06) | 3.59 | 3.53 | — | 1.88 | 1.88 | 24.27 | 16.30 | 295 | 1.46 | 1.46 | (.27) | 1.61 | (.42) | 64 | ||||||||||||||||||
2008(b) | 24.27 | (.02) | (2.33) | (2.35) | — | 1.22 | 1.22 | 20.70 | (10.29) | 264 | 1.49 | † | 1.50 | † | (.16) | † | 1.61 | † | (.28) | † | 24 | |||||||||||||
Class B | ||||||||||||||||||||||||||||||||||
2003 | 11.84 | (.25) | 2.93 | 2.68 | — | — | — | 14.52 | 22.63 | 20 | 2.50 | 2.50 | (1.96) | 2.75 | (2.21) | 111 | ||||||||||||||||||
2004 | 14.52 | (.30) | 1.32 | 1.02 | — | — | — | 15.54 | 7.03 | 21 | 2.33 | 2.33 | (1.78) | 2.56 | (2.01) | 119 | ||||||||||||||||||
2005 | 15.54 | (.26) | 3.44 | 3.18 | — | — | — | 18.72 | 20.46 | 21 | 2.29 | 2.30 | (1.34) | 2.52 | (1.56) | 112 | ||||||||||||||||||
2006 | 18.72 | (.26) | 2.11 | 1.85 | — | — | — | 20.57 | 9.88 | 18 | 2.23 | 2.23 | (1.19) | 2.43 | (1.39) | 48 | ||||||||||||||||||
2007 | 20.57 | (.22) | 3.26 | 3.04 | — | 1.88 | 1.88 | 21.73 | 15.48 | 18 | 2.16 | 2.16 | (.97) | 2.31 | (1.12) | 64 | ||||||||||||||||||
2008(b) | 21.73 | (.09) | (2.06) | (2.15) | — | 1.22 | 1.22 | 18.36 | (10.58) | 15 | 2.19 | † | 2.20 | † | (.86) | † | 2.31 | † | (.98) | † | 24 | |||||||||||||
132 | 133 |
Financial Highlights (continued) | |||||||||||||||||||||||||||||||||||
FIRST INVESTORS EQUITY FUNDS | |||||||||||||||||||||||||||||||||||
P E R S H A R E D A T A | R A T I O S / S U P P L E M E N T A L D A T A | ||||||||||||||||||||||||||||||||||
Less Distributions | Ratio to Average Net | ||||||||||||||||||||||||||||||||||
Investment Operations | from | Ratio to Average Net | Assets Before Expenses | ||||||||||||||||||||||||||||||||
Net Asset | Net | Net Realized | Net Asset | Assets** | Waived or Assumed | ||||||||||||||||||||||||||||||
Value, | Investment | and Unrealized | Total from | Net | Net | Value, | Net Assets | Net Expenses | Net Expenses | Net | Net | Portfolio | |||||||||||||||||||||||
Beginning | Income | Gain (Loss) on | Investment | Investment | Realized | Total | End of | Total | End of Period | After Fee | Before Fee | Investment | Investment | Turnover | |||||||||||||||||||||
of Period | (Loss) | Investments | Operations | Income | Gain | Distributions | Period | Return | * | (in millions) | Credits | Credits | (a) | Income (Loss) | Expenses | Income (Loss) | Rate | ||||||||||||||||||
INTERNATIONAL FUND | |||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
2006(c) | $10.00 | $ — | $ .71 | $ .71 | $ — | — | $ — | $10.71 | 7.10 | % | $ 19 | 2.35 | %† | 2.35 | %† | .15 | %† | 5.65 | %† | (3.15) | %† | 9 | % | ||||||||||||
2007 | 10.71 | .08 | 2.46 | 2.54 | .07 | — | .07 | 13.18 | 23.84 | 96 | 2.50 | 2.50 | (.05) | 2.35 | .10 | 67 | |||||||||||||||||||
2008(b) | 13.18 | .01 | (.99) | (.98) | .32 | — | .32 | 11.88 | (7.73) | 119 | 2.00 | † | 2.00 | † | (.29) | † | 1.96 | † | (.25) | † | 55 | ||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||
2006(c) | 10.00 | (.01) | .71 | .70 | — | — | — | 10.70 | 7.00 | 1 | 3.05 | † | 3.05 | † | (.55) | † | 6.35 | † | (3.85) | † | 9 | ||||||||||||||
2007 | 10.70 | — | 2.44 | 2.44 | .07 | — | .07 | 13.07 | 22.93 | 4 | 3.20 | 3.20 | (.75) | 3.05 | (.60) | 67 | |||||||||||||||||||
2008(b) | 13.07 | (.02) | (1.00) | (1.02) | .32 | — | .32 | 11.73 | (8.11) | 5 | 2.70 | † | 2.70 | † | (.99) | † | 2.66 | † | (.95) | † | 55 | ||||||||||||||
* | Calculated without sales charges | ||||||||||||||||||||||||||||||||||
** | Net of expenses waived or assumed by the investment adviser (Note 3) | ||||||||||||||||||||||||||||||||||
† | Annualized | ||||||||||||||||||||||||||||||||||
†† | Prior to May 7, 2007, known as All-Cap Growth Fund. | ||||||||||||||||||||||||||||||||||
††† | Prior to January 31, 2008, known as Mid-Cap Opportunity Fund. | ||||||||||||||||||||||||||||||||||
(a) | The ratios do not include a reduction of expenses from cash balances maintained with the custodian | ||||||||||||||||||||||||||||||||||
or from brokerage service arrangements (Note 1I). | |||||||||||||||||||||||||||||||||||
(b) | For the period October 1, 2007 to March 31, 2008 | ||||||||||||||||||||||||||||||||||
(c) | For the period June 27, 2006 (commencement of operations) to September 30, 2006 | ||||||||||||||||||||||||||||||||||
134 | See notes to financial statements | 135 |
Report of Independent Registered Public |
Accounting Firm |
To the Shareholders and Board of Trustees of |
First Investors Income Funds and First Investors Equity Funds |
We have audited the accompanying statements of assets and liabilities, including |
the portfolios of investments of the Cash Management Fund, Government Fund, |
Investment Grade Fund and Fund For Income, (each a series of First Investors |
Income Funds), and the Total Return Fund, Value Fund, Blue Chip Fund, Growth |
& Income Fund, Global Fund, Select Growth Fund, Opportunity Fund, Special |
Situations Fund, and International Fund (each a series of First Investors Equity |
Funds), as of March 31, 2008, the related statements of operations, the statements of |
changes in net assets, and the financial highlights for each of the periods indicated |
thereon. These financial statements and financial highlights are the responsibility of |
the Funds’ management. Our responsibility is to express an opinion on these financial |
statements and financial highlights based on our audits. |
We conducted our audits in accordance with the standards of the Public Company |
Accounting Oversight Board (United States) . Those standards require that we plan |
and perform the audit to obtain reasonable assurance about whether the financial |
statements and financial highlights are free of material misstatement. The Funds are |
not required to have, nor were we engaged to perform an audit of the Funds’ internal |
control over fi nancial reporting. Our audits included consideration of internal control |
over fi nancial reporting as a basis for designing audit procedures that are appropri- |
ate in the circumstances, but not for the purpose of expressing an opinion on the |
effectiveness of the Funds’ internal control over financial reporting. Accordingly, |
we express no such opinion. An audit includes examining, on a test basis, evidence |
supporting the amounts and disclosures in the financial statements. Our procedures |
included confi rmation of securities owned as of March 31, 2008, by correspondence |
with the custodian and brokers. Where brokers have not replied to our confirmation |
requests, we have carried out other appropriate auditing procedures. An audit also |
includes assessing the accounting principles used and significant estimates made by |
management, as well as evaluating the overall financial statement presentation. We |
believe that our audits provide a reasonable basis for our opinion. |
136 |
In our opinion, the fi nancial statements and financial highlights referred to above |
present fairly, in all material respects, the financial position of the Cash Management |
Fund, Government Fund, Investment Grade Fund, Fund For Income, Total Return |
Fund, Value Fund, Blue Chip Fund, Growth & Income Fund, Global Fund, Select |
Growth Fund, Opportunity Fund, Special Situations Fund and International Fund, as |
of March 31, 2008, and the results of their operations, changes in their net assets, and |
their financial highlights for the periods presented, in conformity with accounting |
principles generally accepted in the United States of America. |
Tait, Weller & Baker LLP |
Philadelphia, Pennsylvania |
May 30, 2008 |
137 |
FIRST INVESTORS INCOME FUNDS |
FIRST INVESTORS EQUITY FUNDS |
Trustees |
——————————————————— |
Charles R. Barton, III |
Stefan L. Geiringer |
Robert M. Grohol |
Kathryn S. Head |
Arthur M. Scutro, Jr. |
James M. Srygley |
Robert F. Wentworth |
Officers |
——————————————————— |
Kathryn S. Head |
President |
Larry R. Lavoie |
Chief Compliance Officer |
Joseph I. Benedek |
Treasurer |
Mark S. Spencer |
Assistant Treasurer |
Ruta M. Carroll |
Secretary |
Carol Lerner Brown |
Assistant Secretary |
138 |
Shareholder Information | |
——————————��———————— | |
Investment Adviser | Custodian |
First Investors Management | The Bank of New York Mellon |
Company, Inc. | One Wall Street |
110 Wall Street | New York, NY 10286 |
New York, NY 10005 | |
Custodian | |
Subadviser | (Global and International Funds) |
(Global Fund) | Brown Brothers Harriman & Co. |
Wellington Management Company, LLP | 40 Water Street |
75 State Street | Boston, MA 02109 |
Boston, MA 02109 | |
Transfer Agent | |
Subadviser | Administrative Data Management Corp. |
(Select Growth Fund) | Raritan Plaza I – 8th Floor |
Smith Asset Management Group, L. P. | Edison, NJ 08837-3620 |
100 Crescent Court | |
Dallas, TX 75201 | Independent Registered Public |
Accounting Firm | |
Subadviser | Tait, Weller & Baker LLP |
(Special Situations Fund) | 1818 Market Street |
Paradigm Capital Management, Inc. | Philadelphia, PA 19103 |
Nine Elk Street | |
Albany, NY 12207 | Legal Counsel |
Kirkpatrick & Lockhart | |
Subadviser | Preston Gates Ellis, LLP |
(International Fund) | 1601 K Street, N. W. |
Vontobel Asset Management, Inc. | Washington, DC 20006 |
1540 Broadway | |
New York, NY 10036 | |
Underwriter | |
First Investors Corporation | |
110 Wall Street | |
New York, NY 10005 | |
139 |
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 1-800-423-4026, |
or can be viewed online or downloaded from the Edgar database on the Securities and |
Exchange Commission’s (SEC) 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 at |
our address listed above 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 also available, without charge, upon request, by calling 1-800-423-4026 or |
writing to us at our address listed above. |
140 |
NOTES | |
141 |
![](https://capedge.com/proxy/N-CSRS/0000886048-08-000006/backcoverx7x1.jpg)
Item 2. Code of Ethics | |
Not applicable | |
Item 3. Audit Committee Financial Expert | |
Not applicable | |
Item 4. Principal Accountant Fees and Services | |
Not applicable | |
Item 5. Audit Committee of Listed Registrants | |
Not applicable | |
Item 6. Schedule of Investments | |
Schedule of investments is included as part of the report to stockholders filed under | |
Item 1 of this Form. | |
Item 7. Disclosure of Proxy Voting Policies & Procedures for | |
Closed-End Management Investment Companies | |
Not applicable | |
Item 8. Portfolio Managers of Closed-End Management Investment Companies | |
Not applicable | |
Item 9. Purchases of Equity Securities by Closed-End Management | |
Investment Companies and Affiliated Purchasers | |
Not applicable | |
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 that |
occurred during the second fiscal quarter of the period covered by this report that has materially | |
affected, or is reasonably likely to materially affect, the Registrant's internal control over | |
financial reporting. | |
Item 12. Exhibits | |
(a)(1) | Code of Ethics - Not applicable |
(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 Equity Funds |
(Registrant) |
By /S/ KATHRYN S. HEAD |
Kathryn S. Head |
President and Principal Executive Officer |
Date: June 3, 2008 |
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. |
First Investors Equity Funds |
(Registrant) |
By /S/ JOSEPH I. BENEDEK |
Joseph I. Benedek |
Treasurer and Principal Financial Officer |
Date: June 3, 2008 |