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, 2009 |
DATE OF REPORTING PERIOD: MARCH 31, 2009 |
Item 1. | Reports to Stockholders |
The semi-annual report to stockholders follows |
![](https://capedge.com/proxy/N-CSRS/0000886048-09-000006/incomeequityx1x1.jpg)
FOREWORD
This report is for the information of the shareholders of the Funds. It is the Funds’ practice to mail only one copy of their 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. The Funds 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 Management 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 address: 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 carefully before investing. The prospectus contains this and other information about the Fund, and should be read carefully before investing.
An investment in a Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although the 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. See Note 9 in the Notes to Financial Statements for information regarding the Cash Management Fund’s participation in the U.S. Department of the Treasury Temporary Guarantee Program for Money Market 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 Funds, including information about its Trustees.
Market Overview
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
Dear Investor:
The reporting period was defined by the global economic crisis. Policymakers responded in force, and as such, events in Washington, D.C. drove much of the market’s movement during the period. Under the Bush administration, the $700 billion Troubled Asset Relief Program (“TARP”) was signed into law, becoming one of the largest economic interventions in the country’s history. The Obama administration followed up with a fiscal stimulus plan and the announcement and implementation of its Financial Stability Plan. The Federal Reserve (the “Fed”) also entered unprecedented territory, cutting its target federal funds rate to historic lows — between zero and 25 basis points — and announcing a plan to pump more than $1 trillion into the economy.
Despite these actions, economic woes persisted, and in some cases, intensified during the period. Consumers were fearful, and pulled back sharply on spending. The U.S. economy shrank at a 6.3% pace in the fourth quarter of 2008, and 6.1% in the first quarter of this year. In March, the unemployment rate rose to 8.5%, the highest level in over 25 years.
Bond market returns in the aggregate were positive: the Merrill Lynch Broad Market Index was up 4.2% for the two quarters. But returns by sector varied, from 7.4% in the Treasury sector to –13.5% in the high yield (i.e., below investment grade) bond market. High quality bonds benefited from the substantial decline in benchmark U.S. Treasury rates. Specifically, the two-year U.S. Treasury note yield fell from 2.0% to 0.8%, and the ten-year note yield fell from 3.8% to 2.7%.
High quality mortgage-backed bonds returned 6.6%. The market benefited from the ongoing purchases of Fannie Mae, Freddie Mac, and Ginnie Mae mortgage-backed securities by the Fed and the Treasury. The government’s commitment to support the mortgage-backed market was underlined by the Fed’s announcement in March that it would increase its purchase program from $500 billion to $1.25 trillion and extend the program through 2009. The investment grade corporate bond market returned 0.1% as the slowing economy and concern about financial issuers affected performance. High yield corporate bonds (sometimes referred to as “high risk” or “junk” bonds) returned –13.5%, reflecting the very weak economy.
1 |
Market Overview (continued)
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
The tax-exempt bond market returned 4.3%. Virtually all of the return occurred in January, which was the best month in the thirty-year history of Merrill Lynch’s Municipal Master Index. The market benefited from substantial demand from individuals, both through direct purchases and mutual funds, as well as from total return investors who viewed municipal bonds as attractive relative to other sectors of the bond market.
In the money markets, the actions by the Fed and the Treasury Department to restore liquidity following the Lehman bankruptcy were successful. As the period ended, the money markets were functioning normally, with yields at very low levels as a result of the Fed’s rate cuts.
In the equities markets, the reporting period was marked by record-setting lows and continued extreme volatility. In the U.S., all segments of the market posted steep losses: large-cap stocks, as measured by the S&P 500 Index, were down 30.5%; mid-cap stocks, as measured by the S&P MidCap 400 Index, fell 32.8%; and small-cap stocks, as measured by the Russell 2000 Index, lost 37.8%. 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 32.0% in U.S. dollars.
There were some reasons for cautious optimism by equity investors during the period. March saw a sharp turnaround in the form of a 20% rally in the Dow Jones Industrial Average (the “Dow”) over a span of three weeks. This sharp rebound marked the Dow’s fastest rise from a bear market low since 1938. Signs of an economic bottom may be beginning to appear. There was an unexpected lift in home sales during the period, as prices became more affordable to families and renters who had previously been priced out of the market. More unexpected, yet positive, news came from a few heavyweights in the financial sector when Citigroup, JP Morgan Chase, and Bank of America all announced that they were profitable in January and February 2009. However, overall the sector continued to struggle: financials fell 24% worldwide during the period. It remains to be seen if this rally will be the one to break the current bear market trend. There may be several such rebounds befor e a final capitulation marks the end of a bear market.
2 |
Thank you for placing your trust in First Investors. As always, we appreciate the opportunity to serve your investment needs.
![](https://capedge.com/proxy/N-CSRS/0000886048-09-000006/incomeequityx5x1.jpg)
Edwin D. Miska
Director of Equities
First Investors Management Company, Inc.
![](https://capedge.com/proxy/N-CSRS/0000886048-09-000006/incomeequityx5x2.jpg)
Clark D. Wagner
Director of Fixed Income
First Investors Management Company, Inc.
May 1, 2009
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 decline 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 w ith your fund.
3 |
Understanding Your Fund’s Expenses (unaudited)
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
As a mutual fund shareholder, you incur two types of costs: (1) transaction costs, including a sales charge (load) on purchase payments (on Class A shares only), a contingent 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, 2008, and held for the entire six-month period ended March 31, 2009. The calculations assume that no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.
Actual Expenses Example:
These amounts help you to estimate the actual expenses that you paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the “Expenses Paid During Period” shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.
To estimate the expenses you paid on your account during this period, simply divide your ending account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number given for your Fund under the heading “Expenses Paid During Period”.
Hypothetical Expenses Example:
These amounts provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio for 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 (unaudited)
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 | |
(10/1/08) | (3/31/09) | (10/1/08–3/31/09)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $1,004.61 | $3.90 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,021.04 | $3.93 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $1,001.40 | $7.09 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,017.80 | $7.14 |
* Expenses are equal to the annualized expense ratio of .78% for Class A shares and 1.42% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
![](https://capedge.com/proxy/N-CSRS/0000886048-09-000006/incomeequityx7x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2009, and are based on the total value of investments.
5 |
Portfolio of Investments
CASH MANAGEMENT FUND
March 31, 2009
Principal | Interest | ||||
Amount | Security | Rate | * | Value | |
CORPORATE NOTES—71.7% | |||||
$ 1,200M | 3M Co., 11/6/09 | 1.07 | % | $1,228,737 | |
Abbott Laboratories: | |||||
7,000M | 4/7/09 (a) | 0.35 | 6,999,591 | ||
2,000M | 5/15/09 | 2.86 | 2,006,020 | ||
800M | 5/15/09 | 2.80 | 802,399 | ||
585M | Atlantic Richfield Co., 4/15/09 | 1.07 | 586,053 | ||
6,000M | Becton Dickinson & Co., 4/6/09 | 0.25 | 5,999,792 | ||
4,400M | BP Capital Markets PLC, 3/15/10 | 1.55 | 4,537,307 | ||
2,000M | Chevron Funding Corp., 4/24/09 | 0.28 | 1,999,642 | ||
3,000M | Citigroup Funding Inc., 5/6/09 | 0.30 | 2,999,125 | ||
8,000M | Coca-Cola Co., 4/14/09 (a) | 0.37 | 7,998,931 | ||
2,605M | DuPont (E.I.) de Nemours & Co., 10/15/09 | 1.55 | 2,678,903 | ||
2,350M | Electric Data Systems Corp., 10/15/09 | 1.41 | 2,421,832 | ||
8,000M | Emerson Electric Co., 6/18/09 (a) | 0.28 | 7,995,146 | ||
8,500M | Fannie Mae, 4/3/09 | 0.33 | 8,499,844 | ||
Freddie Mac: | |||||
5,000M | 4/24/09 | 0.32 | 4,998,977 | ||
1,500M | 5/11/09 | 0.26 | 1,499,567 | ||
6,700M | 5/11/09 | 0.37 | 6,697,244 | ||
9,500M | 5/13/09 | 0.40 | 9,495,563 | ||
General Electric Capital Corp.: | |||||
2,276M | 4/1/09 | 2.80 | 2,276,000 | ||
1,000M | 9/1/09 | 2.25 | 1,007,705 | ||
2,000M | 9/15/09 | 2.59 | 2,018,237 | ||
Illinois Tool Works, Inc.: | |||||
2,500M | 4/6/09 (a) | 0.38 | 2,499,868 | ||
8,000M | 5/8/09 (a) | 0.42 | 7,996,544 | ||
International Business Machines Corp.: | |||||
500M | 6/1/09 | 1.50 | 502,386 | ||
2,675M | 9/15/09 | 1.46 | 2,709,624 | ||
3,095M | John Deere Capital Corp., 7/15/09 | 1.40 | 3,121,638 | ||
2,900M | Johnson & Johnson, 6/8/09 (a) | 0.33 | 2,898,192 | ||
7,000M | Kimberly-Clark Worldwide, 5/1/09 (a) | 0.32 | 6,998,133 | ||
3,700M | Northwest Natural Gas Co., 5/14/09 (a) | 0.65 | 3,697,124 | ||
7,000M | PepsiCo, Inc., 4/16/09 (a) | 0.19 | 6,999,446 | ||
4,000M | Pfizer, Inc., 6/5/09 (a) | 0.35 | 3,997,472 | ||
Pitney Bowes Credit Corp.: | |||||
5,000M | 9/15/09 | 1.80 | 1,622,937 | ||
1,585M | 9/15/09 | 3.17 | 5,151,401 | ||
800M | 9/15/09 | 1.27 | 826,084 |
6 |
Principal | Interest | ||||
Amount | Security | Rate | * | Value | |
CORPORATE NOTES (continued) | |||||
Procter & Gamble Co.: | |||||
$ 345M | 8/10/09 | 2.50 | % | $ 352,363 | |
1,500M | 9/15/09 | 0.99 | 1,539,774 | ||
2,000M | Procter & Gamble International Finance, 7/6/09 | 5.30 | 2,016,717 | ||
4,500M | SBC Communications, Inc., 9/15/09 | 1.70 | 4,548,671 | ||
4,000M | Toyota Motor Credit Corp., 4/23/09 | 0.40 | 3,999,022 | ||
2,000M | United Technologies Corp., 6/1/09 | 1.13 | 2,017,930 | ||
960M | Vastar Resources, Inc., 4/1/09 | 0.90 | 960,000 | ||
Wal-Mart Stores, Inc.: | |||||
3,000M | 8/10/09 | 2.27 | 3,049,423 | ||
2,500M | 8/10/09 | 2.50 | 2,538,879 | ||
2,000M | 8/10/09 | 1.46 | 2,038,802 | ||
1,500M | 8/10/09 | 1.90 | 1,526,593 | ||
Total Value of Corporate Notes (cost $158,355,638) | 158,355,638 | ||||
FLOATING RATE NOTES—19.7% | |||||
1,500M | AstraZeneca PLC, 9/11/09 | 1.61 | 1,502,909 | ||
1,500M | BP Capital Markets PLC, 3/17/10 | 1.53 | 1,502,005 | ||
5,000M | Federal Home Loan Bank, 10/13/09 | 1.19 | 5,004,400 | ||
Freddie Mac: | |||||
2,250M | 10/8/09 | 0.46 | 2,247,943 | ||
4,000M | 1/8/10 | 0.61 | 4,001,533 | ||
6,750M | IBM International Group Capital, LLC, 7/29/09 | 1.52 | 6,752,019 | ||
4,210M | Monongallia Health Systems, 7/1/40 | 1.00 | 4,210,000 | ||
700M | Port Blakely Community WA Rev., 2/15/21 | 0.95 | 700,000 | ||
2,880M | Procter & Gamble Co., 3/9/10 | 1.46 | 2,886,422 | ||
3,500M | Procter & Gamble International Finance, 7/6/09 (b) | 1.42 | 3,501,205 | ||
3,000M | Toyota Motor Credit Corp., 1/29/10 | 2.43 | 3,000,000 | ||
3,175M | University of Oklahoma Hospital Rev., 8/15/21 | 0.85 | 3,175,000 | ||
5,000M | Walt Disney Co., 9/10/09 | 1.39 | 5,001,294 | ||
Total Value of Floating Rate Notes (cost $43,484,730) | 43,484,730 |
7 |
Portfolio of Investments (continued)
CASH MANAGEMENT FUND
March 31, 2009
Principal | Interest | ||||||
Amount | Security | Rate | * | Value | |||
U.S. GOVERNMENT AGENCY | |||||||
OBLIGATIONS—4.7% | |||||||
Federal Home Loan Bank: | |||||||
$ 3,500M | 4/30/09 | 2.63 | % | $ 3,500,000 | |||
1,250M | 12/15/09 (c) | 1.55 | 1,250,000 | ||||
1,500M | 1/6/10 | 0.93 | 1,529,186 | ||||
2,000M | 1/26/10 | 1.00 | 1,997,866 | ||||
2,000M | Freddie Mac, 2/5/10 | 1.05 | 2,000,000 | ||||
Total Value of U.S. Government Agency Obligations (cost $10,277,052) | 10,277,052 | ||||||
BANKERS’ ACCEPTANCES—2.3% | |||||||
5,000M | Bank of America NA, 4/20/09 (cost $4,998,468) | 0.58 | 4,998,468 | ||||
U.S. GOVERNMENT OBLIGATIONS—.9% | |||||||
2,000M | U.S. Treasury Bills, 6/25/09 (cost $1,998,963) | 0.22 | 1,998,963 | ||||
Total Value of Investments (cost $219,114,851)** | 99.3 | % | 219,114,851 | ||||
Other Assets, Less Liabilities | .7 | 1,642,554 | |||||
Net Assets | 100.0 | % | $220,757,405 |
* 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, 2009.
** Aggregate cost for federal income tax purposes is the same.
(a) Security exempt from registration under Secton 4(2) of the Securities Act of 1933 (see Note 4).
(b) Security exempt from registration under Rule 144A of Securities Act of 1933 (see Note 4).
(c) Denotes a step bond (a zero coupon bond that converts to a fixed interest rate at a designated date).
8 | See notes to financial statements |
Fund Expenses (unaudited)
GOVERNMENT FUND
The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 4 for a detailed explanation of the information presented in these examples.
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/08) | (3/31/09) | (10/1/08–3/31/09)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $1,058.36 | $5.64 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,019.45 | $5.54 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $1,054.70 | $9.22 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,015.95 | $9.05 |
* 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 182/365 (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/0000886048-09-000006/incomeequityx11x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2009, and are based on the total value of investments.
9 |
Portfolio of Investments
GOVERNMENT FUND
March 31, 2009
Principal | |||||||
Amount | Security | Value | |||||
MORTGAGE-BACKED CERTIFICATES—100.7% | |||||||
Fannie Mae—7.6% | |||||||
$ 9,675M | 5.5%, 7/1/2033 – 12/1/2035 | $ 10,082,044 | |||||
10,722M | 6%, 1/1/2036 – 12/1/2037 | 11,214,226 | |||||
21,296,270 | |||||||
Government National Mortgage Association I | |||||||
Program—93.1% | |||||||
8,500M | 4.5%, 4/20/2039 | 8,696,562 | |||||
53,858M | 5%, 5/15/2033 – 4/20/2039 | 56,008,153 | |||||
85,028M | 5.5%, 3/15/2033 – 2/15/2039 | 88,791,398 | |||||
73,554M | 6%, 3/15/2031 – 12/15/2038 | 77,231,054 | |||||
23,443M | 6.5%, 10/15/2028 – 12/15/2038 | 24,936,312 | |||||
3,849M | 7%, 4/15/2032 – 4/15/2034 | 4,125,360 | |||||
1,346M | 7.5%, 7/15/2023 – 6/15/2034 | 1,446,470 | |||||
261,235,309 | |||||||
Total Value of Mortgage-Backed Certificates (cost $274,249,504) | 282,531,579 | ||||||
SHORT-TERM INVESTMENTS—2.5% | |||||||
Money Market Fund | |||||||
7,028M | First Investors Cash Reserve Fund, 0.59% (cost $7,028,000)* | 7,028,000 | |||||
Total Value of Investments (cost $281,277,504) | 103.2 | % | 289,559,579 | ||||
Excess of Liabilities Over Other Assets | (3.2 | ) | (8,949,952) | ||||
Net Assets | 100.0 | % | $280,609,627 |
* Affiliated unregistered money market fund available only to First Investors funds and certain accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield at March 31, 2009 (see Note 2).
10 | See notes to financial statements |
Fund Expenses (unaudited)
INVESTMENT GRADE FUND
The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 4 for a detailed explanation of the information presented in these examples.
Beginning | `Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/08) | (3/31/09) | (10/1/08–3/31/09)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $989.26 | $5.46 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,019.45 | $5.54 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $985.89 | $8.91 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,015.95 | $9.05 |
* 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 182/365 (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/0000886048-09-000006/incomeequityx13x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2009, and are based on the total value of investments.
11 |
Portfolio of Investments
INVESTMENT GRADE FUND
March 31, 2009
Principal | |||
Amount | Security | Value | |
CORPORATE BONDS—80.4% | |||
Automotive—3.4% | |||
$ 10,301M | Daimler Chrysler NA Holdings Corp., 6.5%, 2013 | $ 9,342,255 | |
Chemicals—1.2% | |||
1,700M | Air Products & Chemicals, Inc., 4.125%, 2010 | 1,701,511 | |
1,700M | Cabot Corp., 5.25%, 2013 (a) | 1,641,986 | |
3,343,497 | |||
Consumer Durables—.5% | |||
1,650M | Black & Decker Corp., 5.75%, 2016 | 1,486,600 | |
Consumer Non-Durables—1.0% | |||
1,600M | Newell Rubbermaid, Inc., 6.75%, 2012 | 1,533,627 | |
1,060M | Procter & Gamble Co., 4.6%, 2014 | 1,123,013 | |
2,656,640 | |||
Energy—12.9% | |||
2,700M | Canadian Natural Resources, Ltd., 5.9%, 2018 | 2,422,607 | |
2,250M | ConocoPhillips, 5.75%, 2019 | 2,269,134 | |
800M | Halliburton Co., 7.45%, 2039 | 803,306 | |
850M | Kinder Morgan Finance Co., 5.35%, 2011 | 816,000 | |
2,800M | Nabors Industries, Inc., 6.15%, 2018 | 2,194,130 | |
Nexen, Inc.: | |||
2,000M | 5.05%, 2013 | 1,843,888 | |
1,800M | 6.4%, 2037 | 1,280,029 | |
2,000M | Northern Border Pipeline Co., 7.1%, 2011 | 2,005,888 | |
2,150M | Pacific Energy Partners LP, 7.125%, 2014 | 1,993,906 | |
7,200M | Rockies Express Pipeline, 6.25%, 2013 (a) | 7,071,005 | |
5,800M | Spectra Energy Capital, LLC, 6.2%, 2018 | 5,362,425 | |
4,400M | Suncor Energy, Inc., 6.85%, 2039 | 3,334,043 | |
3,600M | TransOcean, Inc., 6%, 2018 | 3,397,367 | |
900M | Valero Energy Corp., 10.5%, 2039 | 929,786 | |
35,723,514 | |||
Financial Services—7.7% | |||
5,040M | Amvescap PLC, 5.375%, 2013 | 3,647,871 | |
2,700M | Citigroup, Inc., 5.5%, 2013 | 2,374,207 | |
7,460M | CoBank, ACB, 7.875%, 2018 (a) | 7,292,240 | |
1,800M | Compass Bank, 6.4%, 2017 | 1,671,872 | |
625M | Greenpoint Bank, 9.25%, 2010 | 601,391 |
12 |
Principal | ||||
Amount | Security | Value | ||
Financial Services (continued) | ||||
$ 2,420M | Hibernia Corp., 5.35%, 2014 | $ 1,724,141 | ||
2,900M | Royal Bank of Scotland Group PLC, 5%, 2014 | 1,833,090 | ||
SunTrust Bank, Inc.: | ||||
1,600M | 7.25%, 2018 | 1,542,864 | ||
3,000M | 5.853%, 2049 | 750,321 | ||
21,437,997 | ||||
Financials—8.0% | ||||
American General Finance Corp.: | ||||
875M | 8.125%, 2009 | 672,748 | ||
1,800M | 6.9%, 2017 | 631,580 | ||
1,500M | Bear Stearns Cos., Inc., 7.25%, 2018 | 1,551,589 | ||
1,170M | ERAC USA Finance Enterprise Co., 8%, 2011 (a) | 1,060,156 | ||
2,363M | Ford Motor Credit Co., 9.75%, 2010 | 1,944,508 | ||
Goldman Sachs Group, Inc.: | ||||
500M | 6.15%, 2018 | 457,472 | ||
1,600M | 6.45%, 2036 | 1,014,032 | ||
2,750M | 6.75%, 2037 | 1,864,453 | ||
3,600M | HSBC Finance Corp., 4.75%, 2010 | 3,372,422 | ||
6,700M | Merrill Lynch & Co., 5.45%, 2013 | 5,496,908 | ||
Morgan Stanley: | ||||
1,425M | 5.3%, 2013 | 1,371,409 | ||
1,100M | 6.625%, 2018 | 1,050,595 | ||
2,300M | UBS AG, 5.875%, 2016 | 1,793,809 | ||
22,281,681 | ||||
Food/Beverage/Tobacco—5.4% | ||||
4,600M | Altria Group, Inc., 10.2%, 2039 | 4,710,207 | ||
1,980M | Bunge Limited Finance Corp., 5.875%, 2013 | 1,766,105 | ||
1,900M | Cargill, Inc., 6%, 2017 (a) | 1,788,023 | ||
1,949M | ConAgra Foods, Inc., 6.75%, 2011 | 2,062,227 | ||
4,600M | Philip Morris International, Inc., 5.65%, 2018 | 4,578,642 | ||
14,905,204 | ||||
Food/Drug—1.0% | ||||
2,000M | Kroger Co., 6.75%, 2012 | 2,117,506 | ||
700M | Safeway, Inc., 6.5%, 2011 | 734,428 | ||
2,851,934 |
13 |
Portfolio of Investments (continued)
INVESTMENT GRADE FUND
March 31, 2009
Principal | |||
Amount | Security | Value | |
Health Care—2.4% | |||
$ 2,400M | Novartis, 5.125%, 2019 | $ 2,441,462 | |
4,000M | Pfizer, Inc., 5.35%, 2015 | 4,225,556 | |
6,667,018 | |||
Industrials—.6% | |||
2,365M | Harley-Davidson Funding Corp., 6.8%, 2018 (a) | 1,536,777 | |
Information Technology—1.2% | |||
1,600M | Cisco Systems, Inc., 4.95%, 2019 | 1,577,221 | |
1,750M | Xerox Corp., 6.875%, 2011 | 1,670,858 | |
3,248,079 | |||
Manufacturing—2.9% | |||
1,750M | Briggs & Stratton Corp., 8.875%, 2011 | 1,723,750 | |
2,500M | Crane Co., 6.55%, 2036 | 1,869,987 | |
John Deere Capital Corp.: | |||
2,800M | 5.5%, 2017 | 2,657,586 | |
272M | 5.35%, 2018 | 252,767 | |
1,550M | United Technologies Corp., 6.125%, 2019 | 1,671,715 | |
8,175,805 | |||
Media-Broadcasting—2.7% | |||
2,600M | Comcast Cable Communications, Inc., 7.125%, 2013 | 2,708,519 | |
Cox Communications, Inc.: | |||
2,000M | 4.625%, 2013 | 1,820,460 | |
3,100M | 8.375%, 2039 (a) | 2,916,185 | |
7,445,164 | |||
Media-Diversified—11.5% | |||
3,208M | Dun & Bradstreet Corp., 6%, 2013 | 3,275,743 | |
McGraw-Hill Cos., Inc.: | |||
1,800M | 5.9%, 2017 | 1,576,519 | |
2,300M | 6.55%, 2037 | 1,611,451 | |
6,900M | News America, Inc., 5.3%, 2014 | 6,493,666 | |
4,500M | Thomson Reuters Corp., 5.95%, 2013 | 4,399,542 | |
Time Warner Cable, Inc.: | |||
4,430M | 6.2%, 2013 | 4,316,503 | |
2,700M | 6.75%, 2018 | 2,538,743 |
14 |
Principal | |||
Amount | Security | Value | |
Media-Diversified (continued) | |||
Time Warner, Inc.: | |||
$ 3,550M | 6.875%, 2012 | $ 3,615,671 | |
1,000M | 9.125%, 2013 | 1,051,367 | |
2,800M | Walt Disney Co., 4.5%, 2013 | 2,864,739 | |
31,743,944 | |||
Metals/Mining—.5% | |||
1,300M | Alcoa, Inc., 6%, 2012 | 1,133,834 | |
803M | ArcelorMittal, 6.125%, 2018 | 581,859 | |
1,715,693 | |||
Real Estate Investment Trusts—.6% | |||
200M | AvalonBay Communities, Inc., 6.625%, 2011 | 194,551 | |
1,350M | Duke Weeks Realty Corp., 7.75%, 2009 | 1,329,256 | |
1,523,807 | |||
Retail—.4% | |||
1,000M | McDonald’s Corp., 5%, 2019 | 1,042,094 | |
Telecommunications—5.2% | |||
3,000M | AT&T, Inc., 5.8%, 2019 | 2,942,235 | |
6,100M | Deutsche Telekom International Finance BV, 5.875%, 2013 | 6,210,556 | |
1,359M | GTE Corp., 6.84%, 2018 | 1,348,059 | |
2,000M | SBC Communications, Inc., 6.25%, 2011 | 2,089,946 | |
1,725M | Sprint Capital Corp., 6.375%, 2009 | 1,725,000 | |
14,315,796 | |||
Transportation—1.7% | |||
4,397M | Burlington Northern Santa Fe Corp., 4.3%, 2013 | 4,261,520 | |
300M | Union Pacific Railroad, 7.28%, 2011 | 310,038 | |
4,571,558 | |||
Utilities—7.8% | |||
1,800M | Consumers Energy Co., 6.875%, 2018 | 1,886,992 | |
8,250M | E. ON International Finance BV, 5.8%, 2018 (a) | 8,129,146 | |
2,100M | Electricite de France, 6.95%, 2039 (a) | 2,087,938 | |
2,650M | Entergy Gulf States, Inc., 5.25%, 2015 | 2,397,797 | |
655M | Great River Energy Co., 5.829%, 2017 (a) | 676,859 | |
1,400M | OGE Energy Corp., 5%, 2014 | 1,323,710 |
15 |
Portfolio of Investments (continued)
INVESTMENT GRADE FUND
March 31, 2009
Principal | ||||
Amount | Security | Value | ||
Utilities (continued) | ||||
$ 775M | PSI Energy, Inc., 8.85%, 2022 | $ 938,110 | ||
1,510M | Public Service Electric & Gas Co., 6.75%, 2016 | 1,649,539 | ||
2,575M | Trans-Canada Pipelines, Ltd., 7.625%, 2039 | 2,553,594 | ||
21,643,685 | ||||
Waste Management—.9% | ||||
500M | Allied Waste NA, Inc., 5.75%, 2011 | 488,337 | ||
2,000M | Waste Management, Inc., 6.875%, 2009 | 2,004,794 | ||
2,493,131 | ||||
Wireless Communications—.9% | ||||
2,400M | Verizon Wireless Capital, 5.55%, 2014 (a) | 2,404,522 | ||
Total Value of Corporate Bonds (cost $237,466,925) | 222,556,395 | |||
U.S. GOVERNMENT AGENCY | ||||
OBLIGATIONS—5.0% | ||||
4,500M | Fannie Mae, 4.02%, 2015 | 4,633,974 | ||
5,500M | Federal Farm Credit Bank, 5.37%, 2018 | 5,517,930 | ||
1,000M | Federal Home Loan Bank, 7.23%, 2015 | 1,078,521 | ||
2,500M | Freddie Mac, 6%, 2017 | 2,529,545 | ||
Total Value of U.S. Government Agency Obligations (cost $13,384,819) | 13,759,970 | |||
FLOATING RATE NOTES(b)—4.1% | ||||
Financial Services—1.0% | ||||
4,800M | Wachovia Bank, 1.65%, 2016 | 2,875,930 | ||
Financial—3.1% | ||||
2,300M | General Electric Capital Corp., 1.614%, 2026 | 1,089,137 | ||
4,500M | Goldman Sachs Group, Inc., 1.522%, 2015 | 3,171,641 | ||
2,800M | HSBC Finance Corp., 1.691%, 2016 | 1,531,928 | ||
3,800M | Morgan Stanley, 1.574%, 2015 | 2,703,882 | ||
8,496,588 | ||||
Total Value of Floating Rate Notes (cost $11,324,055) | 11,372,518 |
16 |
Principal | |||||
Amount | Security | Value | |||
MORTGAGE-BACKED CERTIFICATES—4.1% | |||||
Fannie Mae | |||||
$ 8,764M | 5.5%, 8/1/2038 – 10/1/2038 | $ 9,106,464 | |||
2,144M | 6%, 11/1/2038 | 2,242,184 | |||
Total Value of Mortgage-Backed Certificates (cost $11,022,158) | 11,348,648 | ||||
MUNICIPAL BONDS—2.7% | |||||
2,250M | Massachusetts Bay Trans. Auth. MA Rev., 5.25%, 2034 | 2,301,120 | |||
1,800M | Platte Riv. Pwr. Auth. CO, 5%, 2024 | 1,892,484 | |||
1,730M | Tobacco Settlement Fin. Auth. WV, Series “A”, 7.467%, 2047 | 899,946 | |||
2,250M | Triborough Brdg. & Tunl. Auth. NY Rev. Bonds, 5.25%, 2034 | 2,280,398 | |||
Total Value of Municipal Bonds (cost $8,079,375) | 7,373,948 | ||||
U.S. GOVERNMENT OBLIGATIONS—.4% | |||||
953M | FDA Queens LP, 6.99%, 2017 (cost $1,023,770) (a) | 1,126,877 | |||
PASS THROUGH CERTIFICATES—.3% | |||||
Transportation | |||||
458M | American Airlines, Inc., 7.377%, 2019 | 219,624 | |||
1,161M | Continental Airlines, Inc., 8.388%, 2020 | 742,961 | |||
Total Value of Pass Through Certificates (cost $1,618,846) | 962,585 | ||||
SHORT-TERM INVESTMENTS—.8% | |||||
Money Market Fund | |||||
2,115M | First Investors Cash Reserve Fund, 0.59% (cost $2,115,000) (c) | 2,115,000 | |||
Total Value of Investments (cost $286,034,948) | 97.8 | % | 270,615,941 | ||
Other Assets, Less Liabilities | 2.2 | 6,220,342 | |||
Net Assets | 100.0 | % | $ 276,836,283 |
(a) Security exempt from registration under Rule 144A of Securities Act of 1933 (see Note 4).
(b) Interest rates on floating rate notes are determined and reset periodically by the issuer and are the rates in effect on March 31, 2009.
(c) Affiliated unregistered money market fund available only to First Investors funds and certain accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield at March 31, 2009 (see Note 2).
See notes to financial statements | 17 |
Fund Expenses (unaudited)
FUND FOR INCOME
The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 4 for a detailed explanation of the information presented in these examples.
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/08) | (3/31/09) | (10/1/08–3/31/09)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $826.87 | $6.47 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,017.85 | $7.14 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $822.34 | $9.63 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,014.31 | $10.65 |
* Expenses are equal to the annualized expense ratio of 1.42% for Class A shares and 2.12% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
TOP TEN SECTORS
![](https://capedge.com/proxy/N-CSRS/0000886048-09-000006/incomeequityx20x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2009, and are based on the total value of investments.
18 |
Portfolio of Investments
FUND FOR INCOME
March 31, 2009
Principal | |||
Amount | Security | Value | |
CORPORATE BONDS—87.9% | |||
Aerospace/Defense—4.3% | |||
$ 4,775M | Alliant Techsystems, Inc., 6.75%, 2016 | $ 4,560,125 | |
5,508M | DynCorp International, LLC, 9.5%, 2013 | 5,191,290 | |
1,747M | GenCorp, Inc., 9.5%, 2013 | 1,266,575 | |
4,375M | L-3 Communications Corp., 7.625%, 2012 | 4,402,344 | |
15,420,334 | |||
Automotive—3.2% | |||
2,700M | Accuride Corp., 8.5%, 2015 (a) | 587,250 | |
Asbury Automotive Group, Inc.: | |||
5,400M | 8%, 2014 | 2,646,000 | |
2,000M | 7.625%, 2017 | 950,000 | |
6,975M | Avis Budget Car Rental, LLC, 7.75%, 2016 | 1,778,625 | |
General Motors Corp.: | |||
3,500M | 7.7%, 2016 (a) | 437,500 | |
3,500M | 8.375%, 2033 (a) | 437,500 | |
500M | Tenneco Automotive, Inc., 8.625%, 2014 | 95,000 | |
6,575M | United Auto Group, Inc., 7.75%, 2016 | 3,320,375 | |
3,600M | United Components, Inc., 9.375%, 2013 | 1,422,000 | |
11,674,250 | |||
Chemicals—4.2% | |||
Huntsman, LLC: | |||
1,636M | 11.625%, 2010 | 1,623,730 | |
4,515M | 11.5%, 2012 | 3,544,275 | |
4,800M | Newmarket Corp., 7.125%, 2016 | 3,828,000 | |
4,500M | Terra Capital, Inc., 7%, 2017 | 4,162,500 | |
3,075M | Westlake Chemical Corp., 6.625%, 2016 | 2,167,875 | |
15,326,380 | |||
Consumer Non-Durables—1.5% | |||
3,815M | GFSI, Inc., 10.5%, 2011 (b)(c) | 2,880,325 | |
3,125M | Levi Strauss & Co., 9.75%, 2015 | 2,703,125 | |
5,583,450 |
19 |
Portfolio of Investments (continued)
FUND FOR INCOME
March 31, 2009
Principal | |||
Amount | Security | Value | |
Energy—12.9% | |||
$ 5,275M | Basic Energy Services, Inc., 7.125%, 2016 | $ 3,085,875 | |
3,600M | Calfrac Holdings, 7.75%, 2015 (b) | 1,728,000 | |
Chesapeake Energy Corp.: | |||
1,800M | 7.5%, 2014 | 1,633,500 | |
8,850M | 6.625%, 2016 | 7,411,875 | |
4,500M | Cimarex Energy Co., 7.125%, 2017 | 3,645,000 | |
Compagnie Generale de Geophysique: | |||
4,350M | 7.5%, 2015 | 3,458,250 | |
2,900M | 7.75%, 2017 | 2,233,000 | |
4,375M | Complete Production Services, Inc., 8%, 2016 | 2,800,000 | |
4,400M | Connacher Oil & Gas, Ltd., 10.25%, 2015 (b) | 1,408,000 | |
5,900M | Delta Petroleum Corp., 7%, 2015 | 1,917,500 | |
3,100M | Hilcorp Energy I, LP, 9%, 2016 (b) | 2,309,500 | |
3,501M | National Oilwell Varco, Inc., 6.125%, 2015 | 3,059,883 | |
950M | Pacific Energy Partners LP, 7.125%, 2014 | 881,028 | |
Petroplus Finance, Ltd.: | |||
900M | 6.75%, 2014 (b) | 670,500 | |
3,950M | 7%, 2017 (b) | 2,863,750 | |
2,625M | Plains Exploration & Production Co., 7.625%, 2018 | 2,139,375 | |
3,600M | Stallion Oilfield Services, Ltd., 9.75%, 2015 (b) | 468,000 | |
2,600M | Stewart & Stevenson, LLC, 10%, 2014 | 1,976,000 | |
3,490M | Tesoro Corp., 6.25%, 2012 | 3,062,475 | |
46,751,511 | |||
Food/Beverage/Tobacco—4.1% | |||
9,000M | Constellation Brands, Inc. , 7.25%, 2016 | 8,595,000 | |
Land O’Lakes, Inc.: | |||
1,800M | 9%, 2010 | 1,811,250 | |
775M | 8.75%, 2011 | 771,125 | |
4,125M | Southern States Cooperative, Inc., 10.5%, 2010 (b) | 3,691,875 | |
14,869,250 |
20 |
Principal | |||
Amount | Security | Value | |
Food/Drug—2.2% | |||
$ 8,300M | Ingles Markets, Inc., 8.875%, 2011 | $ 8,134,000 | |
Forest Products/Containers—1.3% | |||
2,150M | Jefferson Smurfit Corp., 8.25%, 2012 (d) | 279,500 | |
4,400M | Sappi Papier Holding, AG, 6.75%, 2012 (b) | 2,474,393 | |
2,000M | Tekni-Plex, Inc., 8.75%, 2013 (a) | 990,000 | |
3,275M | Verso Paper Holdings, LLC, 4.92%, 2014 (c) | 966,125 | |
4,710,018 | |||
Gaming/Leisure—4.7% | |||
4,250M | Circus & Eldorado/Silver Legacy, 10.125%, 2012 | 2,783,750 | |
2,513M | Isle of Capri Casinos, Inc., 7%, 2014 | 1,495,235 | |
5,220M | Mandalay Resort Group, 6.375%, 2011 | 1,853,100 | |
6,960M | MGM Mirage, Inc., 6.625%, 2015 | 2,505,600 | |
1,800M | Pinnacle Entertainment, Inc., 7.5%, 2015 | 1,125,000 | |
8,445M | Speedway Motorsports, Inc., 6.75%, 2013 | 7,114,913 | |
16,877,598 | |||
Health Care—9.7% | |||
Alliance Imaging, Inc.: | |||
900M | 7.25%, 2012 | 868,500 | |
3,150M | 7.25%, 2012 | 3,039,750 | |
4,375M | Community Health Systems, 8.875%, 2015 | 4,156,250 | |
1,000M | Cooper Companies, Inc., 7.125%, 2015 | 907,500 | |
4,350M | DaVita, Inc., 7.25%, 2015 | 4,203,187 | |
3,480M | Fisher Scientific International, Inc., 6.125%, 2015 | 3,460,749 | |
4,400M | Genesis Health Ventures, Inc., 9.75%, 2011 (d)(e) | 2,750 | |
5,700M | HCA, Inc., 6.75%, 2013 | 4,289,250 | |
4,000M | Omnicare, Inc., 6.875%, 2015 | 3,600,000 | |
3,025M | Res-Care, Inc., 7.75%, 2013 | 2,684,687 | |
Tenet Healthcare Corp.: | |||
3,450M | 7.375%, 2013 | 2,760,000 | |
2,250M | 9.25%, 2015 | 1,743,750 | |
4,500M | Universal Hospital Services, Inc., 5.943%, 2015 (c) | 3,285,000 | |
35,001,373 |
21 |
Portfolio of Investments (continued)
FUND FOR INCOME
March 31, 2009
Principal | |||
Amount | Security | Value | |
Housing—.9% | |||
$ 2,180M | Beazer Homes USA, Inc., 6.875%, 2015 | $ 479,600 | |
6,100M | Builders FirstSource, Inc., 5.484%, 2012 (c) | 884,500 | |
900M | NTK Holdings, Inc., 0%—10.75%, 2014 (a)(f) | 58,500 | |
3,500M | Realogy Corp., 12.375%, 2015 | 612,500 | |
William Lyon Homes, Inc.: | |||
4,500M | 7.625%, 2012 | 787,500 | |
2,700M | 10.75%, 2013 | 472,500 | |
3,295,100 | |||
Information Technology—3.4% | |||
7,650M | Belden CDT, Inc., 7%, 2017 | 6,311,250 | |
3,000M | Exodus Communications, Inc., 10.75%, 2009 (d)(e) | 1,875 | |
5,250M | Freescale Semiconductor, Inc., 9.125%, 2014 | 420,000 | |
Iron Mountain, Inc.: | |||
1,000M | 8.625%, 2013 | 1,005,000 | |
1,000M | 6.625%, 2016 | 930,000 | |
1,500M | 8%, 2020 | 1,402,500 | |
Sanmina – SCI Corp.: | |||
875M | 4.07%, 2014 (b)(c) | 485,625 | |
1,300M | 8.125%, 2016 | 461,500 | |
Xerox Corp.: | |||
500M | 6.4%, 2016 | 381,728 | |
1,000M | 6.75%, 2017 | 764,821 | |
12,164,299 | |||
Investment/Finance Companies—1.8% | |||
7,300M | LaBranche & Co., Inc., 11%, 2012 | 6,615,625 | |
Manufacturing—2.7% | |||
2,740M | Case New Holland, Inc., 7.125%, 2014 | 2,027,600 | |
ESCO Corp.: | |||
250M | 5.195%, 2013 (b)(c) | 158,750 | |
2,000M | 8.625%, 2013 (b) | 1,530,000 | |
2,500M | Itron, Inc., 7.75%, 2012 | 2,253,125 | |
4,500M | Terex Corp., 8%, 2017 | 3,667,500 | |
9,636,975 |
22 |
Principal | |||
Amount | Security | Value | |
Media-Broadcasting—1.9% | |||
$ 5,250M | Block Communications, Inc., 8.25%, 2015 (b) | $ 3,924,375 | |
4,400M | LBI Media, Inc., 8.5%, 2017 (b) | 1,210,000 | |
3,196M | Nexstar Finance Holding, LLC, 11.375%, 2013 | 1,166,505 | |
1,357M | Sinclair Broadcasting Group, Inc., 8%, 2012 | 742,958 | |
Young Broadcasting, Inc.: | |||
2,920M | 10%, 2011 (d) | 321 | |
4,900M | 8.75%, 2014 (d) | 539 | |
7,044,698 | |||
Media-Cable TV—8.1% | |||
6,250M | Atlantic Broadband Finance, LLC, 9.375%, 2014 | 4,968,750 | |
6,900M | Cablevision Systems Corp., 8%, 2012 | 6,744,750 | |
Charter Communications Holdings, LLC: | |||
8,250M | 11.75%, 2011 (d) | 92,812 | |
2,000M | 8%, 2012 (b)(d) | 1,840,000 | |
5,444M | 10%, 2015 (d) | 61,245 | |
1,875M | CSC Holdings, Inc., 8.5%, 2014 (b) | 1,856,250 | |
6,940M | Echostar DBS Corp., 6.375%, 2011 | 6,714,450 | |
Mediacom LLC/Mediacom Capital Corp.: | |||
4,000M | 7.875%, 2011 | 3,820,000 | |
2,000M | 9.5%, 2013 | 1,880,000 | |
Quebecor Media, Inc.: | |||
800M | 7.75%, 2016 | 612,000 | |
1,000M | 7.75%, 2016 | 765,000 | |
29,355,257 | |||
Media-Diversified—2.6% | |||
Cenveo, Inc.: | |||
5,200M | 7.875%, 2013 | 2,730,000 | |
500M | 10.5%, 2016 (b) | 283,125 | |
2,000M | Deluxe Corp., 7.375%, 2015 | 1,490,000 | |
7,875M | Idearc, Inc., 8%, 2016 (d) | 246,094 | |
MediaNews Group, Inc.: | |||
2,625M | 6.875%, 2013 | 72,187 | |
3,100M | 6.375%, 2014 | 85,250 | |
6,450M | R.H. Donnelley Corp., 8.875%, 2017 | 387,000 | |
4,700M | Universal City Development Partners, Ltd., 11.75%, 2010 | 4,042,000 | |
250M | Universal City Florida Holding Co., 5.92%, 2010 (c) | 88,750 | |
9,424,406 |
23 |
Portfolio of Investments (continued)
FUND FOR INCOME
March 31, 2009
Principal | |||
Amount | Security | Value | |
Metals/Mining—1.8% | |||
$ 500M | Freeport-McMoRan Copper & Gold, Inc., 8.375%, 2017 | $ 468,159 | |
1,750M | Metals USA, Inc., 11.125%, 2015 | 1,058,750 | |
6,010M | Russell Metals, Inc., 6.375%, 2014 | 4,868,100 | |
6,395,009 | |||
Retail-General Merchandise—1.4% | |||
2,900M | GSC Holdings Corp., 8%, 2012 | 2,943,500 | |
6,100M | Neiman Marcus Group, Inc., 10.375%, 2015 (a) | 1,982,500 | |
4,926,000 | |||
Services—6.0% | |||
Allied Waste NA, Inc.: | |||
1,800M | 7.875%, 2013 | 1,792,528 | |
6,000M | 7.375%, 2014 | 5,690,844 | |
5,250M | 6.875%, 2017 | 4,784,708 | |
4,700M | Ashtead Capital, Inc., 9%, 2016 (b) | 2,702,500 | |
3,950M | First Data Corp., 9.875%, 2015 | 2,330,500 | |
United Rentals, Inc.: | |||
2,863M | 6.5%, 2012 | 2,304,715 | |
4,350M | 7%, 2014 | 2,218,500 | |
21,824,295 | |||
Telecommunications—2.9% | |||
5,250M | Citizens Communications Co., 7.125%, 2019 | 4,147,500 | |
3,500M | Qwest Communications International, Inc., 7.5%, 2014 | 3,045,000 | |
3,500M | Windstream Corp., 8.625%, 2016 | 3,456,250 | |
10,648,750 | |||
Transportation—.0% | |||
500M | Titan Petrochemicals Group, Ltd., 8.5%, 2012 (b) | 62,500 | |
Utilities—2.7% | |||
5,250M | Dynergy Holdings, Inc., 7.75%, 2019 | 3,438,750 | |
500M | El Paso Corp., 8.25%, 2016 | 470,000 | |
2,600M | Energy Future Holdings Corp., 10.875%, 2017 | 1,690,000 | |
4,625M | NRG Energy, Inc., 7.375%, 2017 | 4,312,813 | |
9,911,563 |
24 |
Principal | |||
Amount | |||
or Shares | Security | Value | |
Wireless Communications—3.6% | |||
$ 3,500M | Metro PCS Wireless, Inc., 9.25%, 2014 (b) | $ 3,395,000 | |
8,000M | Nextel Communications, Inc., 5.95%, 2014 | 4,480,000 | |
5,200M | Rogers Wireless, Inc., 6.375%, 2014 | 5,269,867 | |
13,144,867 | |||
Total Value of Corporate Bonds (cost $493,106,177) | 318,797,508 | ||
COMMON STOCKS—1.0% | |||
Automotive—.0% | |||
37,387 | * | Safelite Glass Corporation – Class “B” (b)(e) | 23,180 |
2,523 | * | Safelite Realty Corporation (e) | 25 |
23,205 | |||
Chemicals—.2% | |||
182,350 | * | Texas Petrochemicals Corporation (e) | 638,225 |
Consumer Staples—.4% | |||
60,249 | Time Warner Cable, Inc. | 1,494,175 | |
Media-Broadcasting—.1% | |||
325,000 | Sinclair Broadcasting Group, Inc. | 334,750 | |
Telecommunications—.3% | |||
175,000 | Frontier Communications Corporation | 1,256,500 | |
8 | * | Viatel Holding (Bermuda), Ltd. (e) | 29 |
18,224 | * | World Access, Inc. | 15 |
1,256,544 | |||
Total Value of Common Stocks (cost $18,420,986) | 3,746,899 |
25 |
Portfolio of Investments (continued)
FUND FOR INCOME
March 31, 2009
Principal | |||||
Amount | |||||
or Warrants | Security | Value | |||
AUCTION RATE SECURITIES (g)—1.0% | |||||
$2,300M | New York State Twy. Auth. Svc. Contract Rev., 0.838%, 2021 (e) | $2,131,341 | |||
1,725M | Winter Park, FL Elec. Rev., 0.891%, 2034 (e) | 1,425,747 | |||
Total Value of Auction Rate Securities (cost $4,025,000) | 3,557,088 | ||||
WARRANTS—.0% | |||||
Telecommunication Services | |||||
3,500 | * | GT Group Telecom, Inc. (expiring 2/1/10) (cost $316,222) (b)(e) | — | ||
SHORT-TERM INVESTMENTS—7.0% | |||||
Money Market Fund | |||||
$25,360M | First Investors Cash Reserve Fund, 0.59% (cost $25,360,000) (h) | 25,360,000 | |||
REPURCHASE AGREEMENT (i)—1.1% | |||||
3,828M | Barclays Bank PLC, .2%, dated 3/31/09, to be repurchased | ||||
at $3,828,021 on 4/1/09 (collateralized by Fannie Mae, | |||||
5.125%, 4/15/11, valued at $3,926,501) (cost $3,828,000) | 3,828,000 | ||||
Total Value of Investments (cost $545,056,385) | 98.0 | % | 355,289,495 | ||
Other Assets, Less Liabilities | 2.0 | 7,033,443 | |||
Net Assets | 100.0 | % | $362,322,938 |
* Non-income producing
(a) Loaned security; a portion or all of the security is on loan as of March 31, 2009 (see Note 1G).
(b) Security exempt from registration under Rule 144A of Securities Act of 1933 (see Note 4).
(c) Interest rates on adjustable rate bonds are determined and reset periodically by the indentures. The interest rates shown are the rated in effect on March 31, 2009.
(d) In default as to principal and/or interest payment
(e) Securities valued at fair value (see Note 1A).
(f) Denotes a step bond (a zero coupon bond that converts to a fixed interest rate at a designated date).
(g) The interest rates shown are the rates that were in effect on March 31, 2009. While interest rates on auction rate securities are normally determined and reset periodically by the issuer, the auctions on these securities have failed. Therefore, the rates are those that are stipulated under the auction procedures when there are no sufficient clearing bids on an auction date.
(h) Affiliated unregistered money market fund available only to First Investors funds and certain accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield at March 31, 2009 (see Note 2).
(i) Collateral for securities on loan.
26 | See notes to financial statements |
Fund Expenses (unaudited)
TOTAL RETURN FUND
The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 4 for a detailed explanation of the information presented in these examples.
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/08) | (3/31/09) | (10/1/08–3/31/09)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $839.80 | $6.70 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,017.65 | $7.34 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $837.29 | $9.89 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,014.16 | $10.85 |
* Expenses are equal to the annualized expense ratio of 1.46% for Class A shares and 2.16% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Portfolio Composition
TOP TEN SECTORS
![](https://capedge.com/proxy/N-CSRS/0000886048-09-000006/incomeequityx29x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2009, and are based on the total market value of investments.
27 |
Portfolio of Investments
TOTAL RETURN FUND
March 31, 2009
Shares | Security | Value | |
COMMON STOCKS—52.8% | |||
Consumer Discretionary—6.1% | |||
29,800 | BorgWarner, Inc. | $ 604,940 | |
69,000 | Brown Shoe Company, Inc. | 258,750 | |
53,100 | CBS Corporation – Class “B” | 203,904 | |
61,600 | * | CEC Entertainment, Inc. | 1,594,208 |
45,200 | * | Coach, Inc. | 754,840 |
26,800 | * | Eddie Bauer Holdings, Inc. | 11,524 |
23,500 | Genuine Parts Company | 701,710 | |
65,700 | H&R Block, Inc. | 1,195,083 | |
66,400 | Home Depot, Inc. | 1,564,384 | |
74,800 | * | Jack in the Box, Inc. | 1,742,092 |
82,500 | * | Lincoln Educational Services Corporation | 1,511,400 |
29,800 | Luxottica Group SpA (ADR) | 458,920 | |
34,900 | McDonald’s Corporation | 1,904,493 | |
135,300 | * | Morgans Hotel Group Company | 420,783 |
27,400 | Newell Rubbermaid, Inc. | 174,812 | |
13,200 | Polo Ralph Lauren Corporation – Class “A” | 557,700 | |
67,500 | * | Ruby Tuesday, Inc. | 197,100 |
49,700 | Staples, Inc. | 900,067 | |
31,700 | * | Steiner Leisure, Ltd. | 773,797 |
198,300 | Stewart Enterprises, Inc – Class “A” | 642,492 | |
71,660 | Wyndham Worldwide Corporation | 300,972 | |
16,473,971 | |||
Consumer Staples—9.8% | |||
128,500 | Altria Group, Inc. | 2,058,570 | |
33,900 | Avon Products, Inc. | 651,897 | |
30,500 | * | Chattem, Inc. | 1,709,525 |
27,400 | Coca-Cola Company | 1,204,230 | |
101,700 | CVS Caremark Corporation | 2,795,733 | |
46,900 | * | Dean Foods Company | 847,952 |
35,449 | Kraft Foods, Inc. – Class “A” | 790,158 | |
55,200 | McCormick & Company, Inc. | 1,632,264 | |
188,100 | Nu Skin Enterprises, Inc. – Class “A” | 1,973,169 | |
34,200 | PepsiCo, Inc. | 1,760,616 | |
76,300 | Philip Morris International, Inc. | 2,714,754 | |
25,600 | Procter & Gamble Company | 1,205,504 | |
97,100 | Safeway, Inc. | 1,960,449 |
28 |
Shares | Security | Value | |
Consumer Staples (continued) | |||
14,541 | Tootsie Roll Industries, Inc. | $ 315,820 | |
84,700 | Walgreen Company | 2,198,812 | |
48,700 | Wal-Mart Stores, Inc. | 2,537,270 | |
26,356,723 | |||
Energy—4.4% | |||
19,700 | Anadarko Petroleum Corporation | 766,133 | |
67,500 | * | Cal Dive International, Inc. | 456,975 |
29,900 | ConocoPhillips | 1,170,884 | |
34,000 | ExxonMobil Corporation | 2,315,400 | |
1,897 | Hugoton Royalty Trust | 18,135 | |
25,986 | Marathon Oil Corporation | 683,172 | |
48,800 | Noble Corporation | 1,175,592 | |
24,300 | Sasol, Ltd. (ADR) | 703,485 | |
67,400 | Suncor Energy, Inc. | 1,496,954 | |
14,470 | * | Transocean, Inc. | 851,415 |
21,000 | World Fuel Services Corporation | 664,230 | |
52,500 | XTO Energy, Inc. | 1,607,550 | |
11,909,925 | |||
Financials—4.1% | |||
17,200 | American Express Company | 234,436 | |
29,100 | Astoria Financial Corporation | 267,429 | |
16,797 | Bank of America Corporation | 114,556 | |
48,600 | Brookline Bancorp, Inc. | 461,700 | |
20,692 | Capital One Financial Corporation | 253,270 | |
16,400 | Citigroup, Inc. | 41,492 | |
26,550 | Discover Financial Services | 167,530 | |
181,500 | Financial Select Sector SPDR Fund (ETF) | 1,599,015 | |
53,750 | * | First Mercury Financial Corporation | 776,150 |
13,324 | Hartford Financial Services Group, Inc. | 104,593 | |
48,200 | Hudson City Bancorp, Inc. | 563,458 | |
57,900 | JPMorgan Chase & Company | 1,538,982 | |
24,499 | KeyCorp | 192,807 | |
46,100 | Morgan Stanley | 1,049,697 | |
67,800 | New York Community Bancorp, Inc. | 757,326 | |
88,200 | NewAlliance Bancshares, Inc. | 1,035,468 | |
39,400 | SPDR KBW Regional Banking ETF | 757,268 | |
99,272 | Sunstone Hotel Investors, Inc. (REIT) | 261,085 |
29 |
Portfolio of Investments (continued)
TOTAL RETURN FUND
March 31, 2009
Shares | Security | Value | |
Financials (continued) | |||
33,300 | U.S. Bancorp | $ 486,513 | |
16,700 | Webster Financial Corporation | 70,975 | |
28,700 | Wells Fargo & Company | 408,688 | |
11,142,438 | |||
Health Care—8.9% | |||
47,500 | Abbott Laboratories | 2,265,750 | |
15,100 | * | Amgen, Inc. | 747,752 |
18,500 | Baxter International, Inc. | 947,570 | |
28,800 | Becton, Dickinson & Company | 1,936,512 | |
17,500 | * | Cephalon, Inc. | 1,191,750 |
23,700 | * | Genzyme Corporation | 1,407,543 |
57,800 | Johnson & Johnson | 3,040,280 | |
15,500 | * | Laboratory Corporation of America Holdings | 906,595 |
45,100 | Medtronic, Inc. | 1,329,097 | |
33,600 | Merck & Company, Inc. | 898,800 | |
45,800 | Perrigo Company | 1,137,214 | |
134,680 | Pfizer, Inc. | 1,834,342 | |
72,900 | * | PSS World Medical, Inc. | 1,046,115 |
33,700 | Sanofi-Aventis (ADR) | 941,241 | |
16,200 | * | St. Jude Medical, Inc. | 588,546 |
27,500 | * | Thermo Fisher Scientific, Inc. | 980,925 |
62,900 | Wyeth | 2,707,216 | |
23,907,248 | |||
Industrials—6.2% | |||
26,400 | 3M Company | 1,312,608 | |
69,300 | * | AAR Corporation | 869,022 |
27,600 | Alexander & Baldwin, Inc. | 525,228 | |
35,504 | * | Altra Holdings, Inc. | 137,756 |
50,000 | * | Armstrong World Industries, Inc. | 550,500 |
12,600 | Barnes Group, Inc. | 134,694 | |
25,450 | * | BE Aerospace, Inc. | 220,652 |
9,500 | Burlington Northern Santa Fe Corporation | 571,425 | |
55,600 | Chicago Bridge & Iron Company NV – NY Shares | 348,612 | |
39,000 | * | Esterline Technologies Corporation | 787,410 |
77,200 | General Electric Company | 780,492 | |
25,500 | Harsco Corporation | 565,335 | |
46,100 | Honeywell International, Inc. | 1,284,346 | |
41,300 | IDEX Corporation | 903,231 | |
20,300 | Lockheed Martin Corporation | 1,401,309 |
30 |
Shares | Security | Value | |
Industrials (continued) | |||
59,700 | * | Mobile Mini, Inc. | $ 687,744 |
25,400 | Northrop Grumman Corporation | 1,108,456 | |
39,230 | * | PGT, Inc. | 54,530 |
27,000 | * | Pinnacle Airlines Corporation | 37,530 |
25,400 | Raytheon Company | 989,076 | |
18,510 | Republic Services, Inc. | 317,446 | |
93,300 | TAL International Group, Inc. | 682,956 | |
59,200 | Textainer Group Holdings, Ltd. | 399,600 | |
32,975 | Tyco International, Ltd. | 644,991 | |
28,700 | United Technologies Corporation | 1,233,526 | |
16,548,475 | |||
Information Technology—9.1% | |||
25,400 | * | CACI International, Inc. – Class “A” | 926,846 |
64,600 | * | Cisco Systems, Inc. | 1,083,342 |
37,400 | * | Electronics for Imaging, Inc. | 366,520 |
116,600 | * | EMC Corporation | 1,329,240 |
79,400 | * | Entrust, Inc. | 119,894 |
62,500 | Harris Corporation | 1,808,750 | |
43,900 | Hewlett-Packard Company | 1,407,434 | |
58,400 | Intel Corporation | 878,920 | |
36,000 | International Business Machines Corporation | 3,488,040 | |
91,500 | * | Macrovision Solutions Corporation | 1,627,785 |
132,200 | Microsoft Corporation | 2,428,514 | |
21,950 | * | NCI, Inc. – Class “A” | 570,700 |
90,900 | Nokia Corporation – Class “A” (ADR) | 1,060,803 | |
69,500 | * | Parametric Technology Corporation | 693,610 |
52,900 | QUALCOMM, Inc. | 2,058,339 | |
52,675 | * | SRA International, Inc. – Class “A” | 774,322 |
134,400 | * | Symantec Corporation | 2,007,936 |
115,200 | * | TIBCO Software, Inc. | 676,224 |
66,076 | Western Union Company | 830,575 | |
17,600 | Xilinx, Inc. | 337,216 | |
24,475,010 |
31 |
Portfolio of Investments (continued)
TOTAL RETURN FUND
March 31, 2009
Shares or | |||
Principal | |||
Amount | Security | Value | |
Materials—1.9% | |||
18,500 | Agrium, Inc. | $ 662,115 | |
58,100 | Celanese Corporation – Series “A” | 776,797 | |
23,100 | Freeport-McMoRan Copper & Gold, Inc. | 880,341 | |
12,600 | PPG Industries, Inc. | 464,940 | |
17,000 | Praxair, Inc. | 1,143,930 | |
73,700 | RPM International, Inc. | 938,201 | |
41,550 | Temple-Inland, Inc. | 223,124 | |
5,089,448 | |||
Telecommunication Services—1.7% | |||
79,300 | AT&T, Inc. | 1,998,360 | |
87,600 | Verizon Communications, Inc. | 2,645,520 | |
4,643,880 | |||
Utilities—.6% | |||
38,100 | Atmos Energy Corporation | 880,872 | |
15,700 | Consolidated Edison, Inc. | 621,877 | |
1,502,749 | |||
Total Value of Common Stocks (cost $178,285,302) | 142,049,867 | ||
MORTGAGE-BACKED CERTIFICATES—17.3% | |||
Fannie Mae—16.4% | |||
$ 1,729M | 5%, 7/1/2033 | 1,789,839 | |
13,772M | 5.5%, 4/1/2033 – 5/1/2037 | 14,345,261 | |
20,481M | 6%, 5/1/2036 – 7/1/2038 | 21,426,364 | |
4,630M | 6.5%, 11/1/2033 – 7/1/2037 | 4,894,006 | |
1,559M | 7%, 3/1/2032 – 8/1/2032 | 1,692,466 | |
44,147,936 | |||
Freddie Mac—.9% | |||
2,293M | 6%, 9/1/2032 – 9/1/2037 | 2,403,185 | |
Total Value of Mortgage-Backed Certificates (cost $44,667,831) | 46,551,121 | ||
CORPORATE BONDS—16.2% | |||
Consumer Non-Durables—.2% | |||
700M | Newell Rubbermaid, Inc., 6.75%, 2012 | 670,962 |
32 |
Principal | |||
Amount | Security | Value | |
Energy—1.9% | |||
$ 1,000M | Canadian Natural Resources, Ltd., 5.9%, 2018 | $ 897,262 | |
500M | ConocoPhillips, 5.75%, 2019 | 504,252 | |
130M | Halliburton Co., 7.45%, 2039 | 130,537 | |
500M | Kinder Morgan Finance Co., 5.35%, 2011 | 480,000 | |
1,000M | Nexen, Inc., 6.4%, 2037 | 711,127 | |
1,000M | Northern Border Pipeline Co., 7.1%, 2011 | 1,002,944 | |
1,000M | Pacific Energy Partners LP, 7.125%, 2014 | 927,398 | |
500M | Spectra Energy Capital, LLC, 6.2%, 2018 | 462,278 | |
5,115,798 | |||
Financial Services—1.3% | |||
1,000M | CoBank, ACB, 7.875%, 2018 (a) | 977,512 | |
1,000M | Fifth Third Bancorp, 5.45%, 2017 | 745,829 | |
500M | Hibernia Corp., 5.35%, 2014 | 356,227 | |
1,000M | Nationsbank Corp., 7.8%, 2016 | 643,054 | |
1,000M | Prudential Financial, Inc., 6%, 2017 | 661,401 | |
3,384,023 | |||
Financials—2.3% | |||
1,000M | American General Finance Corp., 6.9%, 2017 | 350,878 | |
1,000M | Bear Stearns Cos., Inc., 7.25%, 2018 | 1,034,393 | |
1,000M | Caterpillar Financial Services Corp., 5.85%, 2017 | 870,225 | |
927M | Ford Motor Credit Co., 9.75%, 2010 | 762,826 | |
850M | General Motors Acceptance Corp., LLC, 7.75%, 2010 (a) | 714,221 | |
1,000M | Goldman Sachs Group, Inc., 6.45%, 2036 | 633,770 | |
1,000M | HSBC Finance Corp., 4.75%, 2010 | 936,784 | |
1,000M | Merrill Lynch & Co., 5.45%, 2013 | 820,434 | |
6,123,531 | |||
Food/Beverage/Tobacco—1.9% | |||
1,000M | Altria Group, Inc., 10.2%, 2039 | 1,023,958 | |
1,170M | Bunge Limited Finance Corp., 5.875%, 2013 | 1,043,607 | |
900M | Cargill, Inc., 6%, 2017 (a) | 846,959 | |
1,000M | Coca-Cola Enterprises, Inc., 7.125%, 2017 | 1,094,371 | |
1,000M | Philip Morris International, Inc., 5.65%, 2018 | 995,357 | |
5,004,252 | |||
Food/Drug—.3% | |||
700M | Kroger Co., 6.75%, 2012 | 741,127 |
33 |
Portfolio of Investments (continued)
TOTAL RETURN FUND
March 31, 2009
Principal | |||
Amount | Security | Value | |
Health Care—.4% | |||
$ 400M | Novartis, 5.125%, 2019 | $ 406,910 | |
650M | Pfizer, Inc., 5.35%, 2015 | 686,653 | |
1,093,563 | |||
Information Technology—.1% | |||
275M | Cisco Systems, Inc., 4.95%, 2019 | 271,085 | |
Manufacturing—1.0% | |||
1,000M | Crane Co., 6.55%, 2036 | 747,995 | |
1,000M | John Deere Capital Corp., 5.35%, 2018 | 929,289 | |
1,000M | United Technologies Corp., 6.125%, 2019 | 1,078,526 | |
2,755,810 | |||
Manufacturing-Diversified—.4% | |||
1,200M | General Electric Co., 5.25%, 2017 | 1,111,657 | |
Media-Broadcasting—.7% | |||
750M | Comcast Cable Communications, Inc., 7.125%, 2013 | 781,303 | |
Cox Communications, Inc.: | |||
800M | 5.5%, 2015 | 709,821 | |
500M | 8.375%, 2039 (a) | 470,353 | |
1,961,477 | |||
Media-Diversified—1.2% | |||
AOL Time Warner, Inc.: | |||
750M | 6.75%, 2011 | 761,553 | |
1,000M | 6.875%, 2012 | 1,018,499 | |
1,000M | McGraw-Hill Cos., Inc., 5.9%, 2017 | 875,844 | |
500M | News America, Inc., 5.3%, 2014 | 470,556 | |
3,126,452 | |||
Metals/Mining—.5% | |||
1,000M | Alcoa, Inc., 6%, 2012 | 872,180 | |
500M | ArcelorMittal, 6.125%, 2018 | 362,303 | |
1,234,483 |
34 |
Principal | |||
Amount | Security | Value | |
Telecommunications—.9% | |||
$ 500M | AT&T, Inc., 5.8%, 2019 | $ 490,372 | |
800M | GTE Corp., 6.84%, 2018 | 793,559 | |
600M | SBC Communications, Inc., 6.25%, 2011 | 626,984 | |
400M | Verizon Wireless Capital, 5.55%, 2014 (a) | 400,754 | |
2,311,669 | |||
Transportation—.2% | |||
500M | Burlington Northern Santa Fe Corp., 4.3%, 2013 | 484,594 | |
Utilities—2.5% | |||
1,000M | Consolidated Edison Co. of New York, 7.125%, 2018 | 1,065,540 | |
2,000M | E. ON International Finance BV, 5.8%, 2018 (a) | 1,970,702 | |
600M | Electricite de France, 6.95%, 2039 (a) | 596,554 | |
350M | Entergy Gulf States, Inc., 5.25%, 2015 | 316,690 | |
873M | Great River Energy, 5.829%, 2017 (a) | 902,478 | |
900M | Public Service Electric & Gas Co., 6.75%, 2016 | 983,169 | |
1,000M | Trans-Canada Pipelines, Ltd., 7.625%, 2039 | 991,687 | |
6,826,820 | |||
Waste Management—.4% | |||
1,000M | Waste Management, Inc., 6.875%, 2009 | 1,002,397 | |
Total Value of Corporate Bonds (cost $47,505,413) | 43,219,700 | ||
U.S. GOVERNMENT AGENCY | |||
OBLIGATIONS—2.8% | |||
1,000M | Fannie Mae, 5.5%, 2018 | 1,001,100 | |
2,000M | Federal Farm Credit Bank, 5.37%, 2018 | 2,006,520 | |
1,000M | Freddie Mac, 6%, 2017 | 1,011,818 | |
Tennessee Valley Authority: | |||
1,450M | 4.375%, 2015 | 1,544,816 | |
2,000M | 4.5%, 2018 | 2,074,764 | |
Total Value of U.S. Government Agency Obligations (cost $7,548,651) | 7,639,018 | ||
MUNICIPAL BONDS—2.5% | |||
3,000M | Kentucky State Ppty. & Bldgs, 5.375%, 2023 | 3,162,960 | |
2,500M | Massachusetts Bay Trans. Auth. MA Rev., 5.25%, 2034 | 2,556,800 | |
1,965M | Tobacco Settlement Fin. Auth., WV, Series “A”, 7.467%, 2047 | 1,022,193 | |
Total Value of Municipal Bonds (cost $7,376,767) | 6,741,953 |
35 |
Portfolio of Investments (continued)
TOTAL RETURN FUND
March 31, 2009
Principal | |||||
Amount | |||||
or Shares | Security | Value | |||
U.S. GOVERNMENT FDIC GUARANTEED | |||||
DEBT—1.9% | |||||
Financials | |||||
$ 1,500M | Bank of America NA, 1.361%, 2010 | $ 1,502,073 | |||
1,000M | JPMorgan Chase & Co., 1.331%, 2011 | 1,002,107 | |||
2,500M | Regions Bank, 2.75%, 2010 | 2,558,333 | |||
Total Value of U.S. Government FDIC Guaranteed Debt (cost $5,028,684) | 5,062,513 | ||||
PASS THROUGH CERTIFICATES—.1% | |||||
Transportation | |||||
578M | Continental Airlines, Inc., 8.388%, 2020 (cost $596,102) | 369,972 | |||
PREFERRED STOCKS—.0% | |||||
Financials | |||||
150,000 | Preferred Blocker, Inc., 9%, 2011 (cost $146,737) (a) | 29,873 | |||
SHORT-TERM CORPORATE NOTES—5.9% | |||||
Money Market Fund | |||||
$15,840M | First Investors Cash Reserve Fund, .59% (cost $15,840,000) (b) | 15,840,000 | |||
Total Value of Investments (cost $306,995,487) | 99.5 | % | 267,504,017 | ||
Other Assets, Less Liabilities | .5 | 1,466,595 | |||
Net Assets | 100.0 | % | $268,970,612 |
* Non-income producing
(a) Security exempt from registration under Rule 144A of Securities Act of 1933 (see Note 4).
(b) Affiliated unregistered money market fund available only to First Investors funds and certain accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield at March 31, 2009 (see Note 2).
Summary of Abbreviations:
ADR American Depositary Receipts
ETF Exchange Traded Fund
REIT Real Estate Investment Trust
36 | See notes to financial statements |
Fund Expenses (unaudited)
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 | |
(10/1/08) | (3/31/09) | (10/1/08–3/31/09)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $716.53 | $6.46 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,017,40 | $7.59 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $714.21 | $9.45 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,013.91 | $11.10 |
* Expenses are equal to the annualized expense ratio of 1.51% for Class A shares and 2.21% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Portfolio Composition
TOP TEN SECTORS
![](https://capedge.com/proxy/N-CSRS/0000886048-09-000006/incomeequityx39x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2009, and are based on the total value of investments.
37 |
Portfolio of Investments
VALUE FUND
March 31, 2009
Shares | Security | Value | |
COMMON STOCKS—92.3% | |||
Consumer Discretionary—11.5% | |||
24,500 | Best Buy Company, Inc. | $ 930,020 | |
46,700 | Bob Evans Farms, Inc. | 1,047,014 | |
55,800 | Carnival Corporation | 1,205,280 | |
56,100 | CBS Corporation – Class “B” | 215,424 | |
78,900 | Cinemark Holdings, Inc. | 740,871 | |
95,500 | Family Dollar Stores, Inc. | 3,186,835 | |
62,200 | Genuine Parts Company | 1,857,292 | |
60,600 | H&R Block, Inc. | 1,102,314 | |
80,900 | Home Depot, Inc. | 1,906,004 | |
29,700 | J.C. Penney Company, Inc. | 596,079 | |
93,100 | Leggett & Platt, Inc. | 1,209,369 | |
96,400 | Lowe’s Companies, Inc. | 1,759,300 | |
32,800 | Marine Products Corporation | 139,072 | |
56,400 | McDonald’s Corporation | 3,077,748 | |
55,700 | Newell Rubbermaid, Inc. | 355,366 | |
125,800 | Pearson PLC (ADR) | 1,259,258 | |
112,400 | * | Ruby Tuesday, Inc. | 328,208 |
78,000 | Staples, Inc. | 1,412,580 | |
72,800 | Tiffany & Company | 1,569,568 | |
16,701 | Time Warner Cable, Inc. | 414,173 | |
66,533 | Time Warner, Inc. | 1,284,093 | |
131,500 | Walt Disney Company | 2,388,040 | |
39,220 | Wyndham Worldwide Corporation | 164,724 | |
28,148,632 | |||
Consumer Staples—18.0% | |||
77,200 | Avon Products, Inc. | 1,484,556 | |
95,700 | Coca-Cola Company | 4,206,015 | |
15,800 | Colgate-Palmolive Company | 931,884 | |
65,400 | ConAgra Foods, Inc. | 1,103,298 | |
35,700 | Costco Wholesale Corporation | 1,653,624 | |
53,100 | CVS Caremark Corporation | 1,459,719 | |
48,200 | Diageo PLC (ADR) | 2,156,950 | |
33,000 | Estee Lauder Companies, Inc. – Class “A” | 813,450 | |
58,600 | H.J. Heinz Company | 1,937,316 | |
91,100 | Hershey Corporation | 3,165,725 | |
63,600 | Kimberly-Clark Corporation | 2,932,596 | |
169,700 | Kraft Foods, Inc. – Class “A” | 3,782,613 | |
54,000 | McCormick & Company, Inc. | 1,596,780 | |
71,000 | PepsiAmericas, Inc. | 1,224,750 |
38 |
Shares | Security | Value | |
Consumer Staples (continued) | |||
51,400 | PepsiCo, Inc. | $ 2,646,072 | |
81,000 | Philip Morris International, Inc. | 2,881,980 | |
37,400 | Ruddick Corporation | 839,630 | |
37,200 | Safeway, Inc. | 751,068 | |
176,700 | Sara Lee Corporation | 1,427,736 | |
78,300 | Walgreen Company | 2,032,668 | |
97,400 | Wal-Mart Stores, Inc. | 5,074,540 | |
44,102,970 | |||
Energy—9.3% | |||
54,400 | Anadarko Petroleum Corporation | 2,115,616 | |
53,800 | BP PLC (ADR) | 2,157,380 | |
60,417 | Chevron Corporation | 4,062,439 | |
64,700 | ConocoPhillips | 2,533,652 | |
30,800 | Diamond Offshore Drilling, Inc. | 1,936,088 | |
23,200 | ExxonMobil Corporation | 1,579,920 | |
23,200 | Hess Corporation | 1,257,440 | |
106,600 | Marathon Oil Corporation | 2,802,514 | |
56,100 | Royal Dutch Shell PLC – Class “A” (ADR) | 2,485,230 | |
53,900 | Tidewater, Inc. | 2,001,307 | |
22,931,586 | |||
Financials—14.4% | |||
21,700 | ACE, Ltd. | 876,680 | |
39,500 | Allstate Corporation | 756,425 | |
44,300 | Aon Corporation | 1,808,326 | |
29,000 | Aspen Insurance Holdings, Ltd. | 651,340 | |
157,200 | Bank Mutual Corporation | 1,424,232 | |
130,887 | Bank of America Corporation | 892,649 | |
93,028 | Bank of New York Mellon Corporation | 2,628,041 | |
51,521 | Brookfield Asset Management, Inc. – Class “A” | 709,959 | |
25,903 | Capital One Financial Corporation | 317,053 | |
46,456 | Chubb Corporation | 1,966,018 | |
54,047 | Cincinnati Financial Corporation | 1,236,055 | |
89,600 | Citigroup, Inc. | 226,688 | |
44,800 | Comerica, Inc. | 820,288 | |
32,700 | EMC Insurance Group, Inc. | 688,989 | |
39,149 | Erie Indemnity Company – Class “A” | 1,338,113 | |
58,700 | Financial Select Sector SPDR Fund (ETF) | 517,147 | |
85,900 | First Potomac Realty Trust (REIT) | 631,365 | |
88,900 | Hudson City Bancorp, Inc. | 1,039,241 |
39 |
Portfolio of Investments (continued)
VALUE FUND
March 31, 2009
Shares | Security | Value | |
Financials (continued) | |||
68,300 | Invesco, Ltd. | $ 946,638 | |
196,700 | Investors Real Estate Trust (REIT) | 1,939,462 | |
100,300 | JPMorgan Chase & Company | 2,665,974 | |
58,600 | KeyCorp | 461,182 | |
41,074 | Lincoln National Corporation | 274,785 | |
53,600 | Morgan Stanley | 1,220,472 | |
118,300 | NewAlliance Bancshares, Inc. | 1,388,842 | |
116,200 | People’s United Financial, Inc. | 2,088,114 | |
47,300 | Plum Creek Timber Company, Inc. (REIT) | 1,375,011 | |
43,300 | PNC Financial Services Group, Inc. | 1,268,257 | |
49,300 | Protective Life Corporation | 258,825 | |
16,800 | SunTrust Banks, Inc. | 197,232 | |
34,600 | Waddell & Reed Financial, Inc. – Class “A” | 625,222 | |
87,200 | Wells Fargo & Company | 1,241,728 | |
107,400 | Westfield Financial, Inc. | 945,120 | |
35,425,473 | |||
Health Care—8.5% | |||
71,400 | Abbott Laboratories | 3,405,780 | |
20,700 | Becton, Dickinson & Company | 1,391,868 | |
44,775 | Covidien, Ltd. | 1,488,321 | |
58,600 | GlaxoSmithKline PLC (ADR) | 1,820,702 | |
98,800 | Johnson & Johnson | 5,196,880 | |
48,900 | Medtronic, Inc. | 1,441,083 | |
52,700 | Novartis AG (ADR) | 1,993,641 | |
179,500 | Pfizer, Inc. | 2,444,790 | |
67,300 | Schering-Plough Corporation | 1,584,915 | |
20,767,980 | |||
Industrials—9.6% | |||
39,600 | 3M Company | 1,968,912 | |
8,700 | Alexander & Baldwin, Inc. | 165,561 | |
30,600 | * | Armstrong World Industries, Inc. | 336,906 |
57,300 | Avery Dennison Corporation | 1,280,082 | |
73,300 | Dover Corporation | 1,933,654 | |
31,400 | Emerson Electric Company | 897,412 | |
43,100 | General Dynamics Corporation | 1,792,529 | |
149,800 | General Electric Company | 1,514,478 | |
71,900 | Honeywell International, Inc. | 2,003,134 | |
23,900 | Hubbell, Inc. – Class “B” | 644,344 | |
60,600 | Illinois Tool Works, Inc. | 1,869,510 |
40 |
Shares | Security | Value | |
Industrials (continued) | |||
33,000 | ITT Corporation | $ 1,269,510 | |
38,430 | Lawson Products, Inc. | 467,693 | |
37,400 | Norfolk Southern Corporation | 1,262,250 | |
51,600 | Pitney Bowes, Inc. | 1,204,860 | |
47,800 | Textainer Group Holdings, Ltd. | 322,650 | |
38,175 | Tyco International, Ltd. | 746,703 | |
49,000 | United Parcel Service, Inc. – Class “B” | 2,411,780 | |
106,500 | Werner Enterprises, Inc. | 1,610,280 | |
23,702,248 | |||
Information Technology—7.1% | |||
5,300 | * | Adobe Systems, Inc. | 113,367 |
79,700 | Automatic Data Processing, Inc. | 2,802,252 | |
110,900 | AVX Corporation | 1,006,972 | |
43,365 | Bel Fuse, Inc. – Class “B” | 582,826 | |
85,300 | Hewlett-Packard Company | 2,734,718 | |
59,300 | Intel Corporation | 892,465 | |
15,700 | International Business Machines Corporation | 1,521,173 | |
171,200 | Methode Electronics, Inc. | 612,896 | |
144,900 | Microsoft Corporation | 2,661,813 | |
80,900 | Molex, Inc. | 1,111,566 | |
122,300 | Nokia Corporation – Class “A” (ADR) | 1,427,241 | |
53,600 | Texas Instruments, Inc. | 884,936 | |
47,875 | Tyco Electronics, Ltd. | 528,540 | |
35,500 | Xilinx, Inc. | 680,180 | |
17,560,945 | |||
Materials—5.3% | |||
36,700 | Air Products & Chemicals, Inc. | 2,064,375 | |
70,200 | Alcoa, Inc. | 515,268 | |
39,000 | Bemis Company, Inc. | 817,830 | |
27,100 | Compass Minerals International, Inc. | 1,527,627 | |
106,700 | Dow Chemical Company | 899,481 | |
105,100 | DuPont (E.I.) de Nemours & Company | 2,346,883 | |
72,300 | Glatfelter | 451,152 | |
39,800 | Lubrizol Corporation | 1,353,598 | |
31,600 | PPG Industries, Inc. | 1,166,040 | |
89,200 | Sonoco Products Company | 1,871,416 | |
13,013,670 |
41 |
Portfolio of Investments (continued)
VALUE FUND
March 31, 2009
Shares | Security | Value | |
Telecommunication Services—3.9% | |||
155,430 | AT&T, Inc. | $ 3,916,836 | |
60,200 | D&E Communications, Inc. | 323,274 | |
21,420 | Embarq Corporation | 810,747 | |
24,000 | Telephone & Data Systems, Inc. | 636,240 | |
30,000 | Telephone & Data Systems, Inc. – Special Shares | 709,500 | |
108,128 | Verizon Communications, Inc. | 3,265,465 | |
9,662,062 | |||
Utilities—4.7% | |||
20,150 | American States Water Company | 731,848 | |
61,100 | Duke Energy Corporation | 874,952 | |
33,200 | FPL Group, Inc. | 1,684,236 | |
18,200 | Integrys Energy Group, Inc. | 473,928 | |
80,050 | MDU Resources Group, Inc. | 1,292,007 | |
130,600 | NiSource, Inc. | 1,279,880 | |
36,800 | ONEOK, Inc. | 832,784 | |
67,500 | Portland General Electric Company | 1,187,325 | |
56,700 | Southwest Gas Corporation | 1,194,669 | |
6,831 | United Utilites Group PLC (ADR) | 94,268 | |
59,700 | Vectren Corporation | 1,259,073 | |
15,000 | Wisconsin Energy Corporation | 617,550 | |
11,522,520 | |||
Total Value of Common Stocks (cost $289,756,160) | 226,838,086 | ||
PREFERRED STOCKS—.8% | |||
Telecommunication Services—.5% | |||
49,800 | AT&T, Inc., 6.375%, 2056 | 1,246,992 | |
Utilities—.3% | |||
31,600 | Entergy Louisiana, LLC., 7.6%, 2032 | 789,368 | |
Total Value of Preferred Stocks (cost $2,045,426) | 2,036,360 |
42 |
Principal | |||||
Amount | Security | Value | |||
SHORT-TERM INVESTMENTS—6.6% | |||||
Money Market Fund | |||||
$16,200M | First Investors Cash Reserve Fund, .59% (cost $16,200,000)** | $ 16,200,000 | |||
Total Value of Investments (cost $308,001,586) | 99.7 | % | 245,074,446 | ||
Other Assets, Less Liabilities | .3 | 736,691 | |||
Net Assets | 100.0 | % | $245,811,137 |
* Non-income producing
** Affiliated unregistered money market fund available only to First Investors funds and certain accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield at March 31, 2009 (see Note 2).
Summary of Abbreviations:
ADR American Depositary Receipts
ETF Exchange Traded Fund
REIT Real Estate Investment Trust
See notes to financial statements | 43 |
Fund Expenses (unaudited)
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 | |
(10/1/08) | (3/31/09) | (10/1/08–3/31/09)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $714.67 | $6.84 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,016.95 | $8.05 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $711.98 | $9.82 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,013.46 | $11.55 |
* Expenses are equal to the annualized expense ratio of 1.60% for Class A shares and 2.30% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Portfolio Composition
TOP TEN SECTORS
![](https://capedge.com/proxy/N-CSRS/0000886048-09-000006/incomeequityx46x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2009, and are based on the total value of investments.
44 |
Portfolio of Investments
BLUE CHIP FUND
March 31, 2009
Shares | Security | Value | |
COMMON STOCKS—97.0% | |||
Consumer Discretionary—8.9% | |||
20,900 | Best Buy Company, Inc. | $ 793,364 | |
45,100 | Carnival Corporation | 974,160 | |
47,394 | Comcast Corporation – Class “A” | 646,454 | |
84,350 | Comcast Corporation – Special Class “A” | 1,085,584 | |
58,400 | H&R Block, Inc. | 1,062,296 | |
127,700 | Home Depot, Inc. | 3,008,612 | |
35,600 | * | Kohl’s Corporation | 1,506,592 |
157,000 | Lowe’s Companies, Inc. | 2,865,250 | |
51,200 | McDonald’s Corporation | 2,793,984 | |
162,400 | News Corporation – Class “A” | 1,075,088 | |
29,500 | NIKE, Inc. – Class “B” | 1,383,255 | |
64,100 | Staples, Inc. | 1,160,851 | |
46,200 | Target Corporation | 1,588,818 | |
23,704 | Time Warner Cable, Inc. | 587,852 | |
94,433 | Time Warner, Inc. | 1,822,563 | |
70,600 | * | Viacom, Inc. – Class “B” | 1,227,028 |
143,400 | Walt Disney Company | 2,604,144 | |
26,185,895 | |||
Consumer Staples—16.4% | |||
81,600 | Altria Group, Inc. | 1,307,232 | |
78,600 | Avon Products, Inc. | 1,511,478 | |
143,700 | Coca-Cola Company | 6,315,615 | |
34,800 | Colgate-Palmolive Company | 2,052,504 | |
33,800 | Costco Wholesale Corporation | 1,565,616 | |
116,000 | CVS Caremark Corporation | 3,188,840 | |
34,100 | Hershey Company | 1,184,975 | |
61,800 | Kimberly-Clark Corporation | 2,849,598 | |
123,724 | Kraft Foods, Inc. – Class “A” | 2,757,808 | |
109,900 | PepsiCo, Inc. | 5,657,652 | |
94,900 | Philip Morris International, Inc. | 3,376,542 | |
125,940 | Procter & Gamble Company | 5,930,515 | |
44,600 | Safeway, Inc. | 900,474 | |
108,200 | Walgreen Company | 2,808,872 | |
128,330 | Wal-Mart Stores, Inc. | 6,685,993 | |
48,093,714 |
45 |
Portfolio of Investments (continued)
BLUE CHIP FUND
March 31, 2009
Shares | Security | Value | |
Energy—12.0% | |||
650 | Apache Corporation | $ 41,659 | |
39,300 | BP PLC (ADR) | 1,575,930 | |
108,600 | Chevron Corporation | 7,302,264 | |
89,870 | ConocoPhillips | 3,519,309 | |
33,200 | Devon Energy Corporation | 1,483,708 | |
161,700 | ExxonMobil Corporation | 11,011,770 | |
105,790 | Halliburton Company | 1,636,571 | |
17,500 | Hess Corporation | 948,500 | |
61,000 | Marathon Oil Corporation | 1,603,690 | |
75,200 | Schlumberger, Ltd. | 3,054,624 | |
78,450 | Spectra Energy Corporation | 1,109,283 | |
23,251 | * | Transocean, Ltd. | 1,368,089 |
39,470 | Valero Energy Corporation | 706,513 | |
35,361,910 | |||
Financials—9.5% | |||
42,600 | ACE, Ltd. | 1,721,040 | |
48,700 | Allstate Corporation | 932,605 | |
98,500 | American Express Company | 1,342,555 | |
170,236 | Bank of America Corporation | 1,161,010 | |
141,787 | Bank of New York Mellon Corporation | 4,005,483 | |
850 | * | Berkshire Hathaway, Inc. – Class “B” | 2,397,000 |
43,000 | Capital One Financial Corporation | 526,320 | |
55,000 | Chubb Corporation | 2,327,600 | |
92,000 | Citigroup, Inc. | 232,760 | |
135,100 | Financial Select Sector SPDR Fund (ETF) | 1,190,231 | |
174,068 | JPMorgan Chase & Company | 4,626,727 | |
56,900 | Marsh & McLennan Companies, Inc. | 1,152,225 | |
65,300 | Morgan Stanley | 1,486,881 | |
20,000 | PNC Financial Services Group, Inc. | 585,800 | |
48,700 | Travelers Companies, Inc. | 1,979,168 | |
64,500 | U.S. Bancorp | 942,345 | |
87,100 | Wells Fargo & Company | 1,240,304 | |
27,850,054 | |||
Health Care—15.5% | |||
89,800 | Abbott Laboratories | 4,283,460 | |
47,000 | Aetna, Inc. | 1,143,510 | |
70,800 | * | Amgen, Inc. | 3,506,016 |
27,300 | Baxter International, Inc. | 1,398,306 | |
136,300 | Bristol-Myers Squibb Company | 2,987,696 |
46 |
Shares | Security | Value | |
Health Care (continued) | |||
48,325 | Covidien, Ltd. | $ 1,606,323 | |
17,500 | * | Genzyme Corporation | 1,039,325 |
184,800 | Johnson & Johnson | 9,720,480 | |
42,300 | McKesson Corporation | 1,482,192 | |
90,700 | Medtronic, Inc. | 2,672,929 | |
91,800 | Merck & Company, Inc. | 2,455,650 | |
75,300 | Novartis AG (ADR) | 2,848,599 | |
322,860 | Pfizer, Inc. | 4,397,353 | |
25,700 | * | St. Jude Medical, Inc. | 933,681 |
44,200 | Teva Pharmaceutical Industries, Ltd. (ADR) | 1,991,210 | |
35,600 | UnitedHealth Group, Inc. | 745,108 | |
56,000 | Wyeth | 2,410,240 | |
45,622,078 | |||
Industrials—10.4% | |||
56,100 | 3M Company | 2,789,292 | |
21,200 | Boeing Company | 754,296 | |
25,800 | Danaher Corporation | 1,398,876 | |
45,600 | Dover Corporation | 1,202,928 | |
70,700 | Emerson Electric Company | 2,020,606 | |
434,300 | General Electric Company | 4,390,773 | |
62,200 | Honeywell International, Inc. | 1,732,892 | |
38,700 | Illinois Tool Works, Inc. | 1,193,895 | |
37,800 | ITT Corporation | 1,454,166 | |
28,500 | Lockheed Martin Corporation | 1,967,355 | |
30,700 | Northrop Grumman Corporation | 1,339,748 | |
34,900 | Raytheon Company – Class “B” | 1,359,006 | |
64,725 | Tyco International, Ltd. | 1,266,021 | |
34,700 | United Parcel Service, Inc. – Class “B” | 1,707,934 | |
102,700 | United Technologies Corporation | 4,414,046 | |
54,600 | Waste Management, Inc. | 1,397,760 | |
30,389,594 |
47 |
Portfolio of Investments (continued)
BLUE CHIP FUND
March 31, 2009
Shares | Security | Value | |
Information Technology—17.6% | |||
49,220 | Accenture, Ltd. – Class “A” | $ 1,353,058 | |
69,000 | * | Adobe Systems, Inc. | 1,475,910 |
36,000 | Analog Devices, Inc. | 693,720 | |
17,400 | * | Apple, Inc. | 1,829,088 |
72,100 | Applied Materials, Inc. | 775,075 | |
41,000 | Automatic Data Processing, Inc. | 1,441,560 | |
272,200 | * | Cisco Systems, Inc. | 4,564,794 |
130,200 | * | Dell, Inc. | 1,234,296 |
226,625 | * | EMC Corporation | 2,583,525 |
134,300 | Hewlett-Packard Company | 4,305,658 | |
251,400 | Intel Corporation | 3,783,570 | |
57,600 | International Business Machines Corporation | 5,580,864 | |
537,545 | Microsoft Corporation | 9,874,702 | |
139,400 | Nokia Corporation – Class “A” (ADR) | 1,626,798 | |
183,300 | * | Oracle Corporation | 3,312,231 |
52,570 | QUALCOMM, Inc. | 2,045,499 | |
99,100 | * | Symantec Corporation | 1,480,554 |
109,900 | Texas Instruments, Inc. | 1,814,449 | |
103,200 | Western Union Company | 1,297,224 | |
56,200 | * | Yahoo!, Inc. | 719,922 |
51,792,497 | |||
Materials—1.6% | |||
58,600 | Alcoa, Inc. | 430,124 | |
89,900 | Dow Chemical Company | 757,857 | |
77,600 | DuPont (E.I.) de Nemours & Company | 1,732,808 | |
28,000 | Newmont Mining Corporation | 1,253,280 | |
17,500 | PPG Industries, Inc. | 645,750 | |
4,819,819 | |||
Telecommunication Services—3.3% | |||
190,000 | AT&T, Inc. | 4,788,000 | |
160,000 | Verizon Communications, Inc. | 4,832,000 | |
9,620,000 |
48 |
Shares or | |||||
Principal | |||||
Amount | Security | Value | |||
Utilities—1.8% | |||||
55,000 | American Electric Power Company, Inc. | $ 1,389,300 | |||
159,600 | Duke Energy Corporation | 2,285,472 | |||
29,700 | FPL Group, Inc. | 1,506,681 | |||
5,181,453 | |||||
Total Value of Common Stocks (cost $313,126,565) | 284,917,014 | ||||
SHORT-TERM INVESTMENTS—2.8% | |||||
Money Market Fund | |||||
$8,202M | First Investors Cash Reserve Fund, .59% (cost $8,202,000)** | 8,202,000 | |||
Total Value of Investments (cost $321,328,565) | 99.8 | % | 293,119,014 | ||
Other Assets, Less Liabilities | .2 | 463,635 | |||
Net Assets | 100.0 | % | $293,582,649 |
* Non-income producing
** Affiliated unregistered money market fund available only to First Investors funds and certain accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield at March 31, 2009 (see Note 2).
Summary of Abbreviations:
ADR American Depositary Receipts
ETF Exchange Traded Fund
See notes to financial statements | 49 |
Fund Expenses (unaudited)
GROWTH & INCOME FUND
The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 4 for a detailed explanation of the information presented in these examples.
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/08) | (3/31/09) | (10/1/08–3/31/09)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $694.28 | $6.56 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,017.20 | $7.80 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $694.28 | $9.50 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,013.71 | $11.30 |
* Expenses are equal to the annualized expense ratio of 1.55% for Class A shares and 2.25% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Portfolio Composition
TOP TEN SECTORS
![](https://capedge.com/proxy/N-CSRS/0000886048-09-000006/incomeequityx52x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2009, and are based on the total value of investments.
50 |
Portfolio of Investments
GROWTH & INCOME FUND
March 31, 2009
Shares | Security | Value | |
COMMON STOCKS—96.4% | |||
Consumer Discretionary—11.5% | |||
110,000 | BorgWarner, Inc. | $ 2,233,000 | |
248,625 | Brown Shoe Company, Inc. | 932,344 | |
195,000 | CBS Corporation – Class “B” | 748,800 | |
181,850 | * | CEC Entertainment, Inc. | 4,706,278 |
146,250 | * | Coach, Inc. | 2,442,375 |
97,500 | * | Eddie Bauer Holdings, Inc. | 41,925 |
68,250 | Genuine Parts Company | 2,037,945 | |
195,500 | H&R Block, Inc. | 3,556,145 | |
200,000 | Home Depot, Inc. | 4,712,000 | |
221,000 | * | Jack in the Box, Inc. | 5,147,090 |
250,000 | * | Lincoln Educational Services Corporation | 4,580,000 |
87,750 | Luxottica Group SpA (ADR) | 1,351,350 | |
110,000 | McDonald’s Corporation | 6,002,700 | |
445,000 | * | Morgans Hotel Group Company | 1,383,950 |
97,500 | Newell Rubbermaid, Inc. | 622,050 | |
48,750 | Polo Ralph Lauren Corporation – Class “A” | 2,059,687 | |
238,875 | * | Ruby Tuesday, Inc. | 697,515 |
175,500 | Staples, Inc. | 3,178,305 | |
93,502 | * | Steiner Leisure, Ltd. | 2,282,384 |
660,000 | Stewart Enterprises, Inc. – Class “A” | 2,138,400 | |
234,000 | Wyndham Worldwide Corporation | 982,800 | |
51,837,043 | |||
Consumer Staples—17.3% | |||
378,900 | Altria Group, Inc. | 6,069,978 | |
100,000 | Avon Products, Inc. | 1,923,000 | |
90,000 | * | Chattem, Inc. | 5,044,500 |
80,812 | Coca-Cola Company | 3,551,687 | |
300,000 | CVS Caremark Corporation | 8,247,000 | |
130,000 | * | Dean Foods Company | 2,350,400 |
104,581 | Kraft Foods, Inc. – Class “A” | 2,331,110 | |
165,000 | McCormick & Company, Inc. | 4,879,050 | |
555,000 | Nu Skin Enterprises, Inc. – Class “A” | 5,821,950 | |
100,000 | PepsiCo, Inc. | 5,148,000 | |
225,000 | Philip Morris International, Inc. | 8,005,500 | |
75,562 | Procter & Gamble Company | 3,558,215 | |
288,750 | Safeway, Inc. | 5,829,862 |
51 |
Portfolio of Investments (continued)
GROWTH & INCOME FUND
March 31, 2009
Shares | Security | Value | |
Consumer Staples (continued) | |||
50,765 | Tootsie Roll Industries, Inc. | $1,102,607 | |
250,000 | Walgreen Company | 6,490,000 | |
146,250 | Wal-Mart Stores, Inc. | 7,619,625 | |
77,972,484 | |||
Energy—8.1% | |||
58,046 | Anadarko Petroleum Corporation | 2,257,409 | |
248,625 | * | Cal Dive International, Inc. | 1,683,191 |
87,750 | ConocoPhillips | 3,436,290 | |
100,000 | ExxonMobil Corporation | 6,810,000 | |
6,920 | Hugoton Royalty Trust | 66,155 | |
76,519 | Marathon Oil Corporation | 2,011,685 | |
156,000 | Noble Corporation | 3,758,040 | |
78,000 | Sasol, Ltd. (ADR) | 2,258,100 | |
198,750 | Suncor Energy, Inc. | 4,414,237 | |
53,208 | * | Transocean, Ltd. | 3,130,759 |
61,400 | World Fuel Services Corporation | 1,942,082 | |
155,000 | XTO Energy, Inc. | 4,746,100 | |
36,514,048 | |||
Financials—8.0% | |||
50,700 | American Express Company | 691,041 | |
102,625 | Astoria Financial Corporation | 943,124 | |
64,260 | Bank of America Corporation | 438,253 | |
182,000 | Brookline Bancorp, Inc. | 1,729,000 | |
63,745 | Capital One Financial Corporation | 780,239 | |
61,150 | Citigroup, Inc. | 154,709 | |
97,500 | Discover Financial Services | 615,225 | |
550,000 | Financial Select Sector SPDR Fund (ETF) | 4,845,500 | |
175,500 | * | First Mercury Financial Corporation | 2,534,220 |
48,750 | Hartford Financial Services Group, Inc. | 382,687 | |
155,000 | Hudson City Bancorp, Inc. | 1,811,950 | |
173,062 | JPMorgan Chase & Company | 4,599,988 | |
88,725 | KeyCorp | 698,266 | |
165,750 | Morgan Stanley | 3,774,127 | |
200,000 | New York Community Bancorp, Inc. | 2,234,000 | |
265,000 | NewAlliance Bancshares, Inc. | 3,111,100 | |
125,000 | SPDR KBW Regional Banking (ETF) | 2,402,500 | |
352,766 | Sunstone Hotel Investors, Inc. (REIT) | 927,775 |
52 |
Shares | Security | Value | |
Financials (continued) | |||
100,000 | U.S. Bancorp | $ 1,461,000 | |
58,500 | Webster Financial Corporation | 248,625 | |
107,250 | Wells Fargo & Company | 1,527,240 | |
35,910,569 | |||
Health Care—15.9% | |||
140,000 | Abbott Laboratories | 6,678,000 | |
45,532 | * | Amgen, Inc. | 2,254,745 |
55,000 | Baxter International, Inc. | 2,817,100 | |
85,000 | Becton, Dickinson & Company | 5,715,400 | |
52,500 | * | Cephalon, Inc. | 3,575,250 |
70,000 | * | Genzyme Corporation | 4,157,300 |
170,625 | Johnson & Johnson | 8,974,875 | |
48,750 | * | Laboratory Corporation of America Holdings | 2,851,387 |
133,125 | Medtronic, Inc. | 3,923,194 | |
97,500 | Merck & Company, Inc. | 2,608,125 | |
135,000 | Perrigo Company | 3,352,050 | |
414,375 | Pfizer, Inc. | 5,643,787 | |
215,000 | * | PSS World Medical, Inc. | 3,085,250 |
121,875 | Sanofi-Aventis (ADR) | 3,403,969 | |
50,000 | * | St. Jude Medical, Inc. | 1,816,500 |
80,000 | * | Thermo Fisher Scientific, Inc. | 2,853,600 |
185,625 | Wyeth | 7,989,300 | |
71,699,832 | |||
Industrials—11.5% | |||
78,000 | 3M Company | 3,878,160 | |
204,457 | * | AAR Corporation | 2,563,891 |
82,485 | Alexander & Baldwin, Inc. | 1,569,690 | |
129,382 | * | Altra Holdings, Inc. | 502,002 |
185,000 | * | Armstrong World Industries, Inc. | 2,036,850 |
50,000 | Barnes Group, Inc. | 534,500 | |
97,500 | * | BE Aerospace, Inc. | 845,325 |
35,000 | Burlington Northern Santa Fe Corporation | 2,105,250 | |
175,500 | Chicago Bridge & Iron Company NV – NY Shares | 1,100,385 | |
115,000 | * | Esterline Technologies Corporation | 2,321,850 |
219,375 | General Electric Company | 2,217,881 | |
79,900 | Harsco Corporation | 1,771,383 | |
136,500 | Honeywell International, Inc. | 3,802,890 | |
121,875 | IDEX Corporation | 2,665,406 | |
60,000 | Lockheed Martin Corporation | 4,141,800 |
53 |
Portfolio of Investments (continued)
GROWTH & INCOME FUND
March 31, 2009
Shares | Security | Value | |
Industrials (continued) | |||
216,450 | * | Mobile Mini, Inc. | $ 2,493,504 |
77,500 | Northrop Grumman Corporation | 3,382,100 | |
142,888 | * | PGT, Inc. | 198,614 |
96,743 | * | Pinnacle Airlines Corporation | 134,473 |
75,000 | Raytheon Company — Class “B” | 2,920,500 | |
55,000 | Republic Services, Inc. | 943,250 | |
300,100 | TAL International Group, Inc. | 2,196,732 | |
175,000 | Textainer Group Holdings, Ltd. | 1,181,250 | |
97,500 | Tyco International, Ltd. | 1,907,100 | |
100,000 | United Technologies Corporation | 4,298,000 | |
51,712,786 | |||
Information Technology—16.5% | |||
75,000 | * | CACI International, Inc. – Class “A” | 2,736,750 |
200,000 | * | Cisco Systems, Inc. | 3,354,000 |
135,000 | * | Electronics for Imaging, Inc. | 1,323,000 |
361,725 | * | EMC Corporation | 4,123,665 |
292,500 | * | Entrust, Inc. | 441,675 |
185,250 | Harris Corporation | 5,361,135 | |
129,500 | Hewlett-Packard Company | 4,151,770 | |
180,375 | Intel Corporation | 2,714,644 | |
108,525 | International Business Machines Corporation | 10,514,987 | |
270,000 | * | Macrovision Solutions Corporation | 4,803,300 |
390,000 | Microsoft Corporation | 7,164,300 | |
65,000 | * | NCI, Inc. – Class “A” | 1,690,000 |
268,125 | Nokia Corporation – Class “A” (ADR) | 3,129,019 | |
248,625 | * | Parametric Technology Corporation | 2,481,277 |
156,000 | QUALCOMM, Inc. | 6,069,960 | |
156,225 | * | SRA International, Inc. – Class A | 2,296,508 |
400,625 | * | Symantec Corporation | 5,985,338 |
365,625 | * | TIBCO Software, Inc. | 2,146,219 |
195,000 | Western Union Company | 2,451,150 | |
60,000 | Xilinx, Inc. | 1,149,600 | |
74,088,297 | |||
Materials—3.6% | |||
50,000 | Agrium, Inc. | 1,789,500 | |
220,000 | Celanese Corporation – Series “A” | 2,941,400 | |
68,250 | Freeport-McMoRan Copper & Gold, Inc. | 2,601,008 | |
45,000 | PPG Industries, Inc. | 1,660,500 |
54 |
Shares or | |||||
Principal | |||||
Amount | Security | Value | |||
Materials (continued) | |||||
50,000 | Praxair, Inc. | $ 3,364,500 | |||
229,125 | RPM International, Inc. | 2,916,761 | |||
146,250 | Temple-Inland, Inc. | 785,363 | |||
16,059,032 | |||||
Telecommunication Services—3.0% | |||||
234,000 | AT&T, Inc. | 5,896,800 | |||
258,375 | Verizon Communications, Inc. | 7,802,925 | |||
13,699,725 | |||||
Utilities—1.0% | |||||
112,515 | Atmos Energy Corporation | 2,601,347 | |||
48,371 | Consolidated Edison, Inc. | 1,915,975 | |||
4,517,322 | |||||
Total Value of Common Stocks (cost $567,391,512) | 434,011,138 | ||||
SHORT-TERM INVESTMENTS—3.5% | |||||
Money Market Fund | |||||
$16,010M | First Investors Cash Reserve Fund, .59% (cost $16,010,000)** | 16,010,000 | |||
Total Value of Investments (cost $583,401,512) | 99.9 | % | 450,021,138 | ||
Other Assets, Less Liabilities | .1 | 330,092 | |||
Net Assets | 100.0 | % | $450,351,230 |
* Non-income producing
** Affiliated unregistered money market fund available only to First Investors funds and certain accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield at March 31, 2009 (see Note 2).
Summary of Abbreviations:
ADR American Depositary Receipts
ETF Exchange Traded Fund
REIT Real Estate Investment Trust
See notes to financial statements | 55 |
Fund Expenses (unaudited)
GLOBAL FUND
The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 4 for a detailed explanation of the information presented in these examples.
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/08) | (3/31/09) | (10/1/08–3/31/09)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $712.27 | $8.45 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,015.06 | $9.95 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $709.11 | $11.42 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,011.57 | $13.44 |
* Expenses are equal to the annualized expense ratio of 1.98% for Class A shares and 2.68% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
TOP TEN SECTORS
![](https://capedge.com/proxy/N-CSRS/0000886048-09-000006/incomeequityx58x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2009, and are based on the total value of investments.
56
Portfolio of Investments
GLOBAL FUND
March 31, 2009
Shares | Security | Value | |
COMMON STOCKS—94.6% | |||
United States—44.7% | |||
39,380 | Abbott Laboratories | $ 1,878,426 | |
18,900 | Accenture, Ltd. – Class “A” | 519,561 | |
6,990 | ACE, Ltd. | 282,396 | |
20,700 | Aflac, Inc. | 400,752 | |
11,500 | * | Akamai Technologies, Inc. | 223,100 |
27,500 | * | Alliance Data Systems Corporation | 1,016,125 |
23,600 | * | Amdocs, Ltd. | 437,072 |
23,300 | American Electric Power Company, Inc. | 588,558 | |
17,300 | Ameriprise Financial, Inc. | 354,477 | |
26,410 | * | Amgen, Inc. | 1,307,823 |
37,435 | Apache Corporation | 2,399,209 | |
1,800 | * | Apple, Inc. | 189,216 |
42,000 | Assured Guaranty, Ltd. | 284,340 | |
104,450 | AT&T, Inc. | 2,632,140 | |
30,200 | * | Atwood Oceanics, Inc. | 501,018 |
5,135 | * | BMC Software, Inc. | 169,455 |
10,390 | Bristol-Myers Squibb Company | 227,749 | |
17,000 | * | Broadcom Corporation – Class “A” | 339,660 |
11,255 | Caterpillar, Inc. | 314,690 | |
5,300 | * | Cephalon, Inc. | 360,930 |
148,765 | * | Cisco Systems, Inc. | 2,494,789 |
13,300 | * | Coach, Inc. | 222,110 |
3,100 | Consol Energy, Inc. | 78,244 | |
70,480 | Corning, Inc. | 935,270 | |
21,590 | * | Coventry Health Care, Inc. | 279,375 |
23,485 | Covidien, Ltd. | 780,641 | |
25,400 | CVS Caremark Corporation | 698,246 | |
15,900 | Deere & Company | 522,633 | |
146,165 | * | EMC Corporation | 1,666,281 |
11,190 | EOG Resources, Inc. | 612,764 | |
17,470 | Exelon Corporation | 792,963 | |
28,650 | ExxonMobil Corporation | 1,951,065 | |
3,900 | FedEx Corporation | 173,511 | |
9,100 | Flowserve Corporation | 510,692 | |
10,245 | FPL Group, Inc. | 519,729 | |
19,060 | Freeport-McMoRan Copper & Gold, Inc. | 726,377 | |
13,100 | * | GameStop Corporation – Class “A” | 367,062 |
102,300 | General Electric Company | 1,034,253 | |
21,845 | * | Genzyme Corporation | 1,297,375 |
12,965 | Goldman Sachs Group, Inc. | 1,374,549 |
57 |
Portfolio of Investments (continued)
GLOBAL FUND
March 31, 2009
Shares | Security | Value | |
United States (continued) | |||
4,500 | * | Google, Inc. – Class “A” | $1,566,270 |
18,500 | * | Gymboree Corporation | 394,975 |
19,766 | Halliburton Company | 305,780 | |
8,800 | Hartford Financial Services Group, Inc. | 69,080 | |
18,760 | Hess Corporation | 1,016,792 | |
48,455 | Hewlett-Packard Company | 1,553,467 | |
56,745 | Honeywell International, Inc. | 1,580,916 | |
52,275 | Intel Corporation | 786,739 | |
12,295 | International Business Machines Corporation | 1,191,263 | |
62,275 | JPMorgan Chase & Company | 1,655,270 | |
53,980 | * | Kohl’s Corporation | 2,284,434 |
7,645 | Lockheed Martin Corporation | 527,734 | |
56,885 | Lowe’s Companies, Inc. | 1,038,151 | |
57,845 | Marathon Oil Corporation | 1,520,745 | |
6,315 | Marsh & McLennan Companies, Inc. | 127,879 | |
29,365 | Maxim Integrated Products, Inc. | 387,912 | |
41,805 | Medtronic, Inc. | 1,231,993 | |
17,600 | * | Micron Technology, Inc. | 71,456 |
118,910 | Microsoft Corporation | 2,184,377 | |
16,270 | Mosaic Company | 683,015 | |
30,500 | * | National Oilwell Varco, Inc. | 875,655 |
7,500 | NIKE, Inc. – Class “B” | 351,675 | |
7,800 | Noble Energy, Inc. | 420,264 | |
8,600 | Nucor Corporation | 328,262 | |
122,905 | * | Oracle Corporation | 2,220,893 |
29,875 | PepsiCo, Inc. | 1,537,965 | |
8,600 | Pfizer, Inc. | 117,132 | |
65,240 | Philip Morris International, Inc. | 2,321,239 | |
26,135 | PNC Financial Services Group, Inc. | 765,494 | |
36,740 | Precision Castparts Corporation | 2,200,726 | |
53,590 | Procter & Gamble Company | 2,523,553 | |
33,275 | QUALCOMM, Inc. | 1,294,730 | |
36,740 | Schering-Plough Corporation | 865,227 | |
10,700 | * | St. Jude Medical, Inc. | 388,731 |
68,720 | Staples, Inc. | 1,244,519 | |
24,490 | State Street Corporation | 753,802 | |
13,485 | Texas Instruments, Inc. | 222,637 | |
21,200 | * | Thomas & Betts Corporation | 530,424 |
18,883 | * | Transocean, Ltd. | 1,111,076 |
19,200 | Travelers Companies, Inc. | 780,288 | |
24,125 | * | Ultra Petroleum Corporation | 865,846 |
58 |
Shares | Security | Value | |
United States (continued) | |||
60,155 | UnitedHealth Group, Inc. | $ 1,259,044 | |
36,950 | Wal-Mart Stores, Inc. | 1,925,095 | |
8,300 | * | WellPoint, Inc. | 315,151 |
56,895 | Wells Fargo & Company | 810,185 | |
60,235 | Western Union Company | 757,154 | |
14,000 | * | Whiting Petroleum Corporation | 361,900 |
39,515 | Wyeth | 1,700,726 | |
80,492,267 | |||
United Kingdom—12.5% | |||
51,018 | AstraZeneca PLC | 1,804,905 | |
16,100 | AstraZeneca PLC (ADR) | 570,745 | |
121,172 | BG Group PLC | 1,825,893 | |
41,019 | BHP Billiton PLC | 808,276 | |
336,868 | BP PLC | 2,256,456 | |
41,854 | British Land Company PLC | 216,034 | |
346,100 | HSBC Holdings PLC | 1,924,914 | |
82,647 | Imperial Tobacco Group PLC | 1,854,170 | |
291,159 | National Grid PLC | 2,233,899 | |
91,701 | Rio Tinto PLC | 3,075,912 | |
110,204 | SABMiller PLC | 1,636,867 | |
83,859 | Standard Chartered PLC | 1,040,210 | |
1,686,381 | Vodafone Group PLC | 2,937,042 | |
90,701 | * | Wolseley PLC | 299,118 |
22,484,441 | |||
Japan—6.2% | |||
19,000 | Astellas Pharma, Inc. | 589,256 | |
22,600 | Daiichi Sankyo Company, Ltd. | 380,802 | |
27,700 | Denso Corporation | 561,184 | |
23,200 | East Japan Railway Company | 1,212,147 | |
25,600 | Eisai Company, Ltd. | 755,167 | |
140,000 | Fuji Heavy Industries, Ltd. | 466,969 | |
11,500 | Honda Motor Company, Ltd. | 274,362 | |
11,600 | Ibiden Company, Ltd. | 284,365 | |
163 | Japan Tobacco, Inc. | 436,678 | |
124,000 | Mitsubishi Electric Corporation | 564,753 | |
83,000 | Mitsubishi Estate Company, Ltd. | 943,628 | |
32,000 | NGK Spark Plug Company, Ltd. | 272,991 | |
14,400 | Nidec Corporation | 649,623 | |
1,900 | Nintendo Company, Ltd. | 557,020 |
59 |
Portfolio of Investments (continued)
GLOBAL FUND
March 31, 2009
Shares | Security | Value | |
Japan (continued) | |||
29,900 | Nippon Telegraph & Telephone Corporation | $ 1,143,609 | |
700 | Nitori Company, Ltd. | 39,264 | |
23,900 | Olympus Corporation | 390,863 | |
11,400 | Secom Company, Ltd. | 422,999 | |
42,300 | Softbank Corporation | 545,955 | |
15,100 | Sumitomo Mitsui Banking Corporation, Inc. | 532,849 | |
87,000 | Toshiba Corporation | 227,136 | |
11,251,620 | |||
France—6.2% | |||
18,994 | BNP Paribas SA | 783,098 | |
30,305 | Compagnie Generale des Etablissement Michelin – Class “B” | 1,122,479 | |
116,527 | France Telecom SA | 2,654,691 | |
41,582 | Group Danone | 2,022,161 | |
18,520 | L’Oreal SA | 1,272,304 | |
16,483 | Sanofi-Aventis | 924,421 | |
49,696 | Total SA | 2,455,780 | |
11,234,934 | |||
Canada—4.7% | |||
7,900 | Agrium, Inc. | 282,741 | |
17,375 | Barrick Gold Corporation | 563,298 | |
91,200 | Brookfield Asset Management, Inc. – Class ‘A’ | 1,262,730 | |
42,700 | Canadian Natural Resources, Ltd. | 1,648,064 | |
29,900 | EnCana Corporation | 1,217,721 | |
5,200 | Petro-Canada | 138,216 | |
11,300 | Potash Corporation of Saskatchewan, Inc. | 913,153 | |
67,600 | Toronto-Dominion Bank | 2,342,077 | |
8,368,000 | |||
Switzerland—4.5% | |||
49,400 | ABB Ltd. (ADR) | 688,636 | |
45,595 | Julius Baer Holding, Ltd. AG – Registered | 1,121,538 | |
90,631 | Nestle SA – Registered | 3,065,277 | |
4,682 | Roche Holding AG – Genusscheine | 643,312 | |
9,009 | Synthes, Inc. | 1,004,702 | |
174,600 | * | UBS AG – Registered | 1,638,717 |
8,162,182 |
60 |
Shares | Security | Value | |
Germany—3.8% | |||
16,093 | Allianz AG | $ 1,353,138 | |
33,213 | Deutsche Boerse AG | 1,996,566 | |
11,044 | Muenchener Rueckversicherungs-Gesellschaft AG – Registered | 1,346,804 | |
20,809 | SAP AG | 732,591 | |
25,702 | Siemens AG | 1,474,168 | |
6,903,267 | |||
Ireland—1.8% | |||
90,875 | CRH PLC | 1,976,330 | |
21,678 | * | CRH PLC (FPR) | 471,161 |
36,700 | * | Ryanair Holdings PLC (ADR) | 848,137 |
3,295,628 | |||
Spain—1.6% | |||
62,207 | Enagas | 880,230 | |
30,454 | Industria de Diseno Textil SA | 1,185,960 | |
20,601 | Red Electrica Corporacion SA | 804,235 | |
2,870,425 | |||
Netherlands—1.5% | |||
79,719 | ING Groep NV | 436,519 | |
163,851 | Koninklijke (Royal) KPN NV | 2,186,106 | |
2,622,625 | |||
Hong Kong—1.4% | |||
300,000 | Cathay Pacific Airways, Ltd. | 297,613 | |
171,500 | Esprit Holdings, Ltd. | 875,122 | |
1,140,888 | Shangri-La Asia, Ltd. | 1,295,787 | |
2,468,522 | |||
South Africa—.9% | |||
100,188 | Impala Platinum Holdings, Ltd. | 1,670,067 | |
Israel—.9% | |||
36,600 | Teva Pharmaceutical Industries, Ltd. (ADR) | 1,648,830 |
61 |
Portfolio of Investments (continued)
GLOBAL FUND
March 31, 2009
Shares | Security | Value | |
Taiwan—.8% | |||
166,509 | Hon Hai Precision Industry Company, Ltd. – Registered (GDR) | $ 715,989 | |
86,600 | Taiwan Semiconductor Manufacturing Company, Ltd. (ADR) | 775,070 | |
1,491,059 | |||
Sweden—.7% | |||
73,921 | Assa Abloy AB – Class “B” | 687,754 | |
14,423 | Hennes Mauritz AB – Class “B” | 537,587 | |
1,225,341 | |||
Finland—.5% | |||
15,000 | Nokia Corporation – Class “A” (ADR) | 175,050 | |
62,901 | Nokia OYJ | 735,157 | |
910,207 | |||
South Korea—.5% | |||
2,188 | Samsung Electronics Company, Ltd. | 903,988 | |
Brazil—.5% | |||
38,875 | Itau Unibanco Banco Multiplo SA (ADR) | 422,960 | |
14,300 | Petroleo Brasileiro SA (ADR) | 435,721 | |
858,681 | |||
China—.4% | |||
102,000 | China Life Insurance Company, Ltd. | 335,505 | |
724,000 | Industrial and Commercial Bank of China, Ltd. | 376,308 | |
711,813 | |||
Mexico—.2% | |||
66,200 | * | Cemex SAB de CV (ADR) | 413,750 |
Turkey—.2% | |||
201,617 | * | Turkiye Garanti Bankasi AS | 283,604 |
Russia—.1% | |||
7,300 | Mobile TeleSystems (ADR) | 218,416 | |
Total Value of Common Stocks (cost $197,958,344) | 170,489,667 |
62 |
Shares or | |||||
Principal | |||||
Amount | Security | Value | |||
RIGHTS—.2% | |||||
United Kingdom | |||||
144,207 | * | HSBC Holdings PLC (expiring 4/3/09) (cost $521,263) | $ 291,443 | ||
SHORT-TERM INVESTMENTS—4.8% | |||||
Money Market Fund | |||||
$8,605M | First Investors Cash Reserve Fund, .59% (cost $8,605,000)** | 8,605,000 | |||
Total Value of Investments (cost $207,084,607) | 99.6 | % | 179,386,110 | ||
Other Assets, Less Liabilities | .4 | 791,532 | |||
Net Assets | 100.0 | % | $180,177,642 |
* Non-income producing
** Affiliated unregistered money market fund available only to First Investors funds and certain accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield at March 31, 2009 (see Note 2).
Summary of Abbreviations:
ADR American Depositary Receipts
FPR Fully Purchased Rights
GDR Global Depositary Receipts
See notes to financial statements | 63 |
Fund Expenses (unaudited)
SELECT GROWTH FUND
The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 4 for a detailed explanation of the information presented in these examples.
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/08) | (3/31/09) | (10/1/08–3/31/09)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $684.60 | $7.10 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,016.50 | $8.50 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $681.60 | $10.02 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,013.01 | $11.99 |
* 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 182/365 (to reflect the one-half year period).
Portfolio Composition
BY SECTOR
![](https://capedge.com/proxy/N-CSRS/0000886048-09-000006/incomeequityx66x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2009, and are based on the total value of investments.
64 |
Portfolio of Investments
SELECT GROWTH FUND
March 31, 2009
Shares | Security | Value | |
COMMON STOCKS—98.1% | |||
Consumer Discretionary—14.3% | |||
54,700 | * | Apollo Group, Inc. – Class “A” | $ 4,284,651 |
22,300 | * | AutoZone, Inc. | 3,626,426 |
115,500 | Family Dollar Stores, Inc. | 3,854,235 | |
66,400 | McDonald’s Corporation | 3,623,448 | |
107,200 | Ross Stores, Inc. | 3,846,336 | |
16,595 | Strayer Education, Inc. | 2,984,943 | |
22,220,039 | |||
Consumer Staples—15.2% | |||
124,400 | * | BJ’s Wholesale Club, Inc. | 3,979,556 |
84,700 | Church & Dwight Company, Inc. | 4,423,881 | |
69,080 | Colgate-Palmolive Company | 4,074,338 | |
194,800 | * | Dean Foods Company | 3,521,984 |
70,400 | Procter & Gamble Company | 3,315,136 | |
82,700 | Wal-Mart Stores, Inc. | 4,308,670 | |
23,623,565 | |||
Energy—6.6% | |||
54,400 | ExxonMobil Corporation | 3,704,640 | |
220,600 | Tesoro Corporation | 2,971,482 | |
198,800 | Valero Energy Corporation | 3,558,520 | |
10,234,642 | |||
Financials—6.6% | |||
88,000 | Aon Corporation | 3,592,160 | |
33,200 | Goldman Sachs Group, Inc. | 3,519,864 | |
117,070 | JPMorgan Chase & Company | 3,111,721 | |
10,223,745 | |||
Health Care—23.2% | |||
62,085 | Becton, Dickinson & Company | 4,174,595 | |
80,725 | * | Biogen Idec, Inc. | 4,231,605 |
184,500 | Bristol-Myers Squibb Company | 4,044,240 | |
59,200 | * | Cephalon, Inc. | 4,031,520 |
82,000 | * | Express Scripts, Inc. | 3,785,940 |
88,000 | * | Gen-Probe, Inc. | 4,011,040 |
65 |
Portfolio of Investments (continued)
SELECT GROWTH FUND
March 31, 2009
Shares or | |||||
Principal | |||||
Amount | Security | Value | |||
Health Care (continued) | |||||
158,800 | Omnicare, Inc. | $ 3,889,012 | |||
116,400 | * | OSI Pharmaceuticals, Inc. | 4,453,464 | ||
110,300 | * | Varian Medical Systems, Inc. | 3,357,532 | ||
35,978,948 | |||||
Industrials—7.1% | |||||
55,100 | L-3 Communications Holdings, Inc. | 3,735,780 | |||
86,500 | Raytheon Company – Class “B” | 3,368,310 | |||
78,700 | Watson Wyatt Worldwide, Inc. – Class “A” | 3,885,419 | |||
10,989,509 | |||||
Information Technology—23.4% | |||||
91,885 | * | Affiliated Computer Services, Inc. – Class “A” | 4,400,373 | ||
131,600 | * | BMC Software, Inc. | 4,342,800 | ||
344,200 | * | EMC Corporation | 3,923,880 | ||
98,600 | Harris Corporation | 2,853,484 | |||
115,200 | Hewlett-Packard Company | 3,693,312 | |||
43,300 | International Business Machines Corporation | 4,195,337 | |||
108,435 | * | McAfee, Inc. | 3,632,572 | ||
267,180 | * | Red Hat, Inc. | 4,766,491 | ||
235,500 | * | SAIC, Inc. | 4,396,785 | ||
36,205,034 | |||||
Materials—1.7% | |||||
178,000 | * | Pactiv Corporation | 2,597,020 | ||
Total Value of Common Stocks (cost $165,375,363) | 152,072,502 | ||||
SHORT-TERM INVESTMENTS—1.8% | |||||
Money Market Fund | |||||
$2,745M | First Investors Cash Reserve Fund, .59% (cost $2,745,000)** | 2,745,000 | |||
Total Value of Investments (cost $168,120,363) | 99.9 | % | 154,817,502 | ||
Other Assets, Less Liabilities | .1 | 102,337 | |||
Net Assets | 100.0 | % | $154,919,839 |
* Non-income producing
** Affiliated unregistered money market fund available only to First Investors funds and certain accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield at March 31, 2009 (see Note 2).
66 | See notes to financial statements |
Fund Expenses (unaudited)
OPPORTUNITY FUND
The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 4 for a detailed explanation of the information presented in these examples.
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/08) | (3/31/09) | (10/1/08–3/31/09)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $672.03 | $6.88 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,016.70 | $8.30 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $669.72 | $9.78 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,013.21 | $11.80 |
* Expenses are equal to the annualized expense ratio of 1.65% for Class A shares and 2.35% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Portfolio Composition
TOP TEN SECTORS
![](https://capedge.com/proxy/N-CSRS/0000886048-09-000006/incomeequityx69x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2009, and are based on the total value of investments.
67 |
Portfolio of Investments
OPPORTUNITY FUND
March 31, 2009
Shares | Security | Value | |
COMMON STOCKS—99.9% | |||
Consumer Discretionary—13.8% | |||
170,000 | BorgWarner, Inc. | $ 3,451,000 | |
220,000 | Brown Shoe Company, Inc. | 825,000 | |
45,000 | * | CEC Entertainment, Inc. | 1,164,600 |
159,000 | Cinemark Holdings, Inc. | 1,493,010 | |
142,500 | * | Coach, Inc. | 2,379,750 |
90,000 | * | Dreamworks Animation SKG, Inc. – Class “A” | 1,947,600 |
126,900 | H&R Block, Inc. | 2,308,311 | |
166,000 | * | Jack in the Box, Inc. | 3,866,140 |
295,000 | * | Morgans Hotel Group Company | 917,450 |
50,000 | Nordstrom, Inc. | 837,500 | |
65,000 | Polo Ralph Lauren Corporation – Class “A” | 2,746,250 | |
165,000 | * | Red Robin Gourmet Burgers, Inc. | 2,908,950 |
550,900 | Stewart Enterprises, Inc. – Class “A” | 1,784,916 | |
117,500 | Tiffany & Company | 2,533,300 | |
235,000 | * | Warnaco Group, Inc. – Class “A” | 5,640,000 |
150,000 | Wolverine World Wide, Inc. | 2,337,000 | |
37,140,777 | |||
Consumer Staples—10.0% | |||
55,000 | * | Chattem, Inc. | 3,082,750 |
280,500 | * | Dean Foods Company | 5,071,440 |
117,500 | McCormick & Company, Inc. | 3,474,475 | |
358,000 | Nu Skin Enterprises, Inc. – Class “A” | 3,755,420 | |
85,500 | Philip Morris International, Inc. | 3,042,090 | |
190,000 | Safeway, Inc. | 3,836,100 | |
375,000 | Sara Lee Corporation | 3,030,000 | |
75,169 | Tootsie Roll Industries, Inc. | 1,632,679 | |
26,924,954 | |||
Energy—8.4% | |||
280,000 | * | Cal Dive International, Inc. | 1,895,600 |
47,500 | EOG Resources, Inc. | 2,601,100 | |
43,000 | Hess Corporation | 2,330,600 | |
110,000 | * | National-Oilwell Varco, Inc. | 3,158,100 |
125,000 | * | Plains Exploration & Production Company | 2,153,750 |
275,000 | Talisman Energy, Inc. | 2,887,500 |
68 |
Shares | Security | Value | |
Energy (continued) | |||
52,500 | * | Transocean, Ltd. | $ 3,089,100 |
190,000 | * | Weatherford International, Ltd. | 2,103,300 |
80,000 | XTO Energy, Inc. | 2,449,600 | |
22,668,650 | |||
Financials—10.8% | |||
40,000 | City National Corporation | 1,350,800 | |
130,000 | Discover Financial Services | 820,300 | |
150,000 | Douglas Emmett, Inc. (REIT) | 1,108,500 | |
32,500 | Federal Realty Investment Trust (REIT) | 1,495,000 | |
450,000 | Financial Select Sector SPDR Fund (ETF) | 3,964,500 | |
130,000 | Hudson City Bancorp, Inc. | 1,519,700 | |
175,000 | Lazard, Ltd. – Class “A” | 5,145,000 | |
165,000 | * | Nasdaq OMX Group, Inc. | 3,230,700 |
220,000 | NewAlliance Bancshares, Inc. | 2,582,800 | |
105,000 | Protective Life Corporation | 551,250 | |
165,000 | SPDR KBW Regional Banking (ETF) | 3,171,300 | |
265,705 | Sunstone Hotel Investors, Inc. (REIT) | 698,804 | |
195,000 | Waddell & Reed Financial, Inc. – Class “A” | 3,523,650 | |
29,162,304 | |||
Health Care—14.3% | |||
72,500 | Beckman Coulter, Inc. | 3,698,225 | |
47,500 | * | Cephalon, Inc. | 3,234,750 |
90,000 | * | Cubist Pharmaceuticals, Inc. | 1,472,400 |
185,000 | DENTSPLY International, Inc. | 4,967,250 | |
57,500 | * | Gilead Sciences, Inc. | 2,663,400 |
67,500 | * | Laboratory Corporation of America Holdings | 3,948,075 |
67,500 | McKesson Corporation | 2,365,200 | |
125,000 | Perrigo Company | 3,103,750 | |
255,000 | * | PSS World Medical, Inc. | 3,659,250 |
177,800 | * | Psychiatric Solutions, Inc. | 2,796,794 |
55,000 | * | St. Jude Medical, Inc. | 1,998,150 |
95,000 | * | Thermo Fisher Scientific, Inc. | 3,388,650 |
110,000 | * | Warner Chilcott, Ltd. – Class “A” | 1,157,200 |
38,453,094 |
69 |
Portfolio of Investments (continued)
OPPORTUNITY FUND
March 31, 2009
Shares | Security | Value | |
Industrials—10.4% | |||
176,800 | * | AAR Corporation | $ 2,217,072 |
135,000 | * | Armstrong World Industries, Inc. | 1,486,350 |
50,000 | * | Axsys Technologies, Inc. | 2,102,000 |
159,500 | Baldor Electric Company | 2,311,155 | |
140,000 | Chicago Bridge & Iron Company NV – NY Shares | 877,800 | |
130,200 | * | Esterline Technologies Corporation | 2,628,738 |
68,700 | Harsco Corporation | 1,523,079 | |
170,000 | IDEX Corporation | 3,717,900 | |
115,000 | J.B. Hunt Transport Services, Inc. | 2,772,650 | |
240,000 | * | Mobile Mini, Inc. | 2,764,800 |
85,000 | Republic Services, Inc. | 1,457,750 | |
110,000 | Rolls-Royce Group PLC (ADR) | 2,299,000 | |
40,000 | Roper Industries, Inc. | 1,698,000 | |
27,856,294 | |||
Information Technology—17.4% | |||
75,000 | * | CACI International, Inc. – Class “A” | 2,736,750 |
90,000 | * | Electronics for Imaging, Inc. | 882,000 |
75,400 | * | FEI Company | 1,163,422 |
95,000 | * | Fiserv, Inc. | 3,463,700 |
145,000 | Harris Corporation | 4,196,300 | |
210,000 | * | Intuit, Inc. | 5,670,000 |
300,000 | * | Macrovision Solutions Corporation | 5,337,000 |
65,000 | * | Mettler-Toledo International, Inc. | 3,336,450 |
45,000 | * | Open Text Corporation | 1,549,800 |
129,200 | * | SRA International, Inc. – Class A | 1,899,240 |
280,000 | * | Sybase, Inc. | 8,481,200 |
282,725 | * | Symantec Corporation | 4,223,912 |
250,000 | Technology Select Sector SPDR Fund (ETF) | 3,905,000 | |
46,844,774 | |||
Materials—5.5% | |||
160,000 | Agrium, Inc. | 5,726,400 | |
72,500 | Allegheny Technologies, Inc. | 1,589,925 | |
44,000 | Freeport-McMoRan Copper & Gold, Inc. | 1,676,840 | |
40,000 | Praxair, Inc. | 2,691,600 | |
80,000 | Sigma-Aldrich Corporation | 3,023,200 | |
14,707,965 |
70 |
Shares or | |||||
Principal | |||||
Amount | Security | Value | |||
Telecommunication Services—1.9% | |||||
250,000 | Frontier Communications Corporation | $ 1,795,000 | |||
190,000 | NTELOS Holdings Corporation | 3,446,600 | |||
5,241,600 | |||||
Utilities—7.4% | |||||
111,000 | AGL Resources, Inc. | 2,944,830 | |||
45,000 | California Water Service Group | 1,883,700 | |||
100,000 | EQT Corporation | 3,133,000 | |||
171,700 | Portland General Electric Company | 3,020,203 | |||
125,000 | SCANA Corporation | 3,861,250 | |||
120,000 | Wisconsin Energy Corporation | 4,940,400 | |||
19,783,383 | |||||
Total Value of Common Stocks (cost $365,987,831) | 268,783,795 | ||||
SHORT-TERM INVESTMENTS—.5% | |||||
Money Market Fund | |||||
$1,420M | First Investors Cash Reserve Fund, .59% (cost $1,420,000)** | 1,420,000 | |||
Total Value of Investments (cost $367,407,831) | 100.4 | % | 270,203,795 | ||
Excess of Liabilities Over Other Assets | (.4 | ) | (1,178,702) | ||
Net Assets | 100.0 | % | $269,025,093 |
* Non-income producing
** Affiliated unregistered money market fund available only to First Investors funds and certain accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield at March 31, 2009 (see Note 2).
Summary of Abbreviations:
ADR American Depositary Receipts
ETF Exchange Traded Fund
REIT Real Estate Investment Trust
See notes to financial statements | 71 |
Fund Expenses (unaudited)
SPECIAL SITUATIONS FUND
The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 4 for a detailed explanation of the information presented in these examples.
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/08) | (3/31/09) | (10/1/08–3/31/09)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $706.83 | $7.28 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,016.40 | $8.60 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $704.65 | $10.24 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,012.91 | $12.09 |
* Expenses are equal to the annualized expense ratio of 1.71% for Class A shares and 2.41% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
TOP TEN SECTORS
![](https://capedge.com/proxy/N-CSRS/0000886048-09-000006/incomeequityx74x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2009, and are based on the total value of investments.
72 |
Portfolio of Investments
SPECIAL SITUATIONS FUND
March 31, 2009
Shares | Security | Value | |
COMMON STOCKS—94.2% | |||
Consumer Discretionary—10.2% | |||
184,900 | American Eagle Outfitters, Inc. | $ 2,263,176 | |
270,800 | Foot Locker, Inc. | 2,837,984 | |
182,500 | Interactive Data Corporation | 4,536,950 | |
89,500 | PetSmart, Inc. | 1,875,920 | |
161,400 | Phillips Van-Heusen Corporation | 3,660,552 | |
298,900 | Regal Entertainment Group – Class “A” | 4,008,249 | |
19,182,831 | |||
Consumer Staples—7.1% | |||
62,950 | Church & Dwight Company, Inc. | 3,287,879 | |
149,100 | Flowers Foods, Inc. | 3,500,868 | |
99,200 | Hormel Foods Corporation | 3,145,632 | |
91,100 | J. M. Smucker Company | 3,395,297 | |
13,329,676 | |||
Energy—4.6% | |||
85,300 | * | Denbury Resources, Inc. | 1,267,558 |
111,600 | * | Plains Exploration & Production Company | 1,922,868 |
214,600 | St. Mary Land & Exploration Company | 2,839,158 | |
99,500 | * | Whiting Petroleum Corporation | 2,572,075 |
8,601,659 | |||
Financials—21.2% | |||
16,232 | * | Alleghany Corporation | 4,396,188 |
198,600 | American Financial Group, Inc. | 3,187,530 | |
789,600 | Anworth Mortgage Asset Corporation (REIT) | 4,840,248 | |
118,400 | Arthur J. Gallagher & Company | 2,012,800 | |
59,300 | Everest Re Group, Ltd. | 4,198,440 | |
173,100 | * | EZCORP, Inc. – Class “A” | 2,002,767 |
167,700 | Harleysville Group, Inc. | 5,334,537 | |
235,000 | Jefferies Group, Inc. | 3,243,000 | |
9,600 | * | Markel Corporation | 2,725,248 |
687,300 | MFA Financial, Inc. (REIT) | 4,041,324 | |
9,752 | National Western Life Insurance Company – Class A | 1,101,976 | |
100,700 | * | Piper Jaffray Companies, Inc. | 2,597,053 |
39,681,111 |
73 |
Portfolio of Investments (continued)
SPECIAL SITUATIONS FUND
March 31, 2009
Shares | Security | Value | |
Health Care—14.5% | |||
237,400 | * | Endo Pharmaceuticals Holdings, Inc. | $ 4,197,232 |
122,600 | * | Life Technologies Corporation | 3,982,048 |
139,500 | * | Lincare Holdings, Inc. | 3,041,100 |
126,500 | * | Magellan Health Services, Inc. | 4,609,660 |
94,300 | * | MEDNAX, Inc. | 2,779,021 |
208,552 | PerkinElmer, Inc. | 2,663,209 | |
173,200 | STERIS Corporation | 4,032,096 | |
58,700 | West Pharmaceutical Services, Inc. | 1,925,947 | |
27,230,313 | |||
Industrials—11.6% | |||
74,600 | Alexander & Baldwin, Inc. | 1,419,638 | |
43,200 | * | Alliant Techsystems, Inc. | 2,893,536 |
109,600 | Curtiss-Wright Corporation | 3,074,280 | |
72,500 | * | EMCOR Group, Inc. | 1,244,825 |
79,527 | * | Kansas City Southern, Inc. | 1,010,788 |
28,100 | Parker-Hannifin Corporation | 954,838 | |
73,000 | Pentair, Inc. | 1,581,910 | |
54,800 | Precision Castparts Corporation | 3,282,520 | |
90,800 | Robbins & Myers, Inc. | 1,377,436 | |
94,900 | Rockwell Collins, Inc. | 3,097,536 | |
168,900 | Woodward Governor Company | 1,888,302 | |
21,825,609 | |||
Information Technology—13.4% | |||
193,750 | * | Avnet, Inc. | 3,392,562 |
93,100 | * | Cabot Microelectronics Corporation | 2,237,193 |
577,500 | * | Compuware Corporation | 3,805,725 |
433,000 | * | Convergys Corporation | 3,498,640 |
143,500 | Fair Isaac Corporation | 2,019,045 | |
144,500 | * | MICROS Systems, Inc. | 2,709,375 |
231,000 | * | QLogic Corporation | 2,568,720 |
93,400 | * | Sybase, Inc. | 2,829,086 |
242,500 | * | Verigy, Ltd. | 2,000,625 |
25,060,971 |
74 |
Shares or | |||||
Principal | |||||
Amount | Security | Value | |||
Materials—5.6% | |||||
109,000 | AptarGroup, Inc. | $ 3,394,260 | |||
157,100 | * | Crown Holdings, Inc. | 3,570,883 | ||
183,300 | Innospec, Inc. | 691,041 | |||
104,000 | * | OM Group, Inc. | 2,009,280 | ||
164,800 | Titanium Metals Corporation | 901,456 | |||
10,566,920 | |||||
Telecommunication Services—3.5% | |||||
465,000 | * | Premiere Global Services, Inc. | 4,101,300 | ||
102,675 | Telephone & Data Systems, Inc. – Special Shares | 2,428,264 | |||
6,529,564 | |||||
Utilities—2.5% | |||||
201,800 | CMS Energy Corporation | 2,389,312 | |||
133,700 | Portland General Electric Company | 2,351,783 | |||
4,741,095 | |||||
Total Value of Common Stocks (cost $211,799,490) | 176,749,749 | ||||
SHORT-TERM INVESTMENTS—6.0% | |||||
Money Market Fund | |||||
$11,236M | First Investors Cash Reserve Fund, .59% (cost $11,236,000)** | 11,236,000 | |||
Total Value of Investments (cost $223,035,490) | 100.2 | % | 187,985,749 | ||
Excess of Liabilities Over Other Assets | (.2 | ) | (450,514) | ||
Net Assets | 100.0 | % | $187,535,235 |
* Non-income producing
** Affiliated unregistered money market fund available only to First Investors funds and certain accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield at March 31, 2009 (see Note 2).
Summary of Abbreviations:
REIT Real Estate Investment Trust
See notes to financial statements | 75 |
Fund Expenses (unaudited)
INTERNATIONAL FUND
The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 4 for a detailed explanation of the information presented in these examples.
Beginning | Ending | ||
Account | Account | Expenses Paid | |
Value | Value | During Period | |
(10/1/08) | (3/31/09) | (10/1/08–3/31/09)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $711.28 | $9.47 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,013.86 | $11.15 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $709.72 | $12.45 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,010.37 | $14.64 |
* Expenses are equal to the annualized expense ratio of 2.22% for Class A shares and 2.92% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Portfolio Composition
TOP TEN SECTORS
![](https://capedge.com/proxy/N-CSRS/0000886048-09-000006/incomeequityx78x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2009, and are based on the total value of investments.
76 |
Portfolio of Investments
INTERNATIONAL FUND
March 31, 2009
Shares | Security | Value | |
COMMON STOCKS—93.1% | |||
United Kingdom—21.1% | |||
88,499 | BG Group PLC | $ 1,333,557 | |
173,039 | British American Tobacco PLC | 3,993,153 | |
156,237 | Cadbury PLC | 1,177,258 | |
38,100 | Capita Group PLC | 370,167 | |
59,800 | De La Rue PLC | 831,875 | |
100,218 | Diageo PLC | 1,117,943 | |
124,612 | Imperial Tobacco Group PLC | 2,795,647 | |
67,931 | Reckitt Benckiser Group PLC | 2,546,072 | |
519,968 | Tesco PLC | 2,481,670 | |
16,647,342 | |||
Switzerland—13.6% | |||
499 | Lindt & Spruengli AG | 668,262 | |
98,520 | Nestle SA – Registered | 3,332,095 | |
47,691 | Novartis AG – Registered | 1,806,304 | |
23,976 | Roche Holding AG – Genusscheine | 3,294,327 | |
15,000 | Synthes, Inc. | 1,672,831 | |
10,773,819 | |||
India—11.1% | |||
13,582 | Bharat Heavy Electricals, Ltd. | 405,229 | |
75,729 | * | Bharti Airtel, Ltd. | 937,202 |
216,155 | Cipla, Ltd. | 939,725 | |
28,445 | HDFC Bank, Ltd. (ADR) | 1,733,154 | |
264,637 | Hindustan Unilever, Ltd. | 1,238,127 | |
73,056 | Housing Development Finance Corporation, Ltd. | 2,038,659 | |
287,691 | ITC, Ltd. | 1,050,072 | |
12,824 | Nestle India, Ltd. | 394,658 | |
8,736,826 | |||
France—6.3% | |||
15,352 | Air Liquide SA | 1,247,558 | |
31,923 | Essilor International SA | 1,232,591 | |
50,390 | Total SA | 2,490,074 | |
4,970,223 |
77 |
Portfolio of Investments (continued)
INTERNATIONAL FUND
March 31, 2009
Shares | Security | Value | |
Brazil—5.4% | |||
15,200 | Companhia de Bebidas das Americas (ADR) | $ 725,800 | |
40,900 | Companhia Energetica de Minas Gerais | 610,236 | |
23,800 | CPFL Energia SA | 325,638 | |
16,800 | Petroleo Brasileiro SA – Petrobras (ADR) | 411,600 | |
89,900 | Redecard SA | 1,097,661 | |
55,030 | Souza Cruz SA | 1,060,324 | |
4,231,259 | |||
Japan—5.3% | |||
17,400 | East Japan Railway Company | 909,110 | |
4,100 | Nintendo Company, Ltd. | 1,201,991 | |
25,200 | Secom Company, Ltd. | 935,049 | |
9,300 | Shimano, Inc. | 283,751 | |
246,500 | Tokyo Gas Company, Ltd. | 866,647 | |
4,196,548 | |||
Spain—5.1% | |||
142,070 | Enagas | 2,010,292 | |
51,200 | Red Electrica Corporacion SA | 1,998,778 | |
4,009,070 | |||
United States—4.9% | |||
108,400 | Philip Morris International, Inc. | 3,856,872 | |
Australia—4.3% | |||
133,000 | Coca-Cola Amatil, Ltd. | 800,872 | |
43,985 | QBE Insurance Group, Ltd. | 589,591 | |
116,058 | Woolworths, Ltd. | 2,012,783 | |
3,403,246 | |||
Netherlands—3.7% | |||
39,761 | Core Laboratories NV | 2,908,915 | |
Denmark—3.1% | |||
51,301 | Novo Nordisk A/S – Series “B” | 2,458,137 | |
Germany—2.4% | |||
20,178 | Fresenius Medical Care AG & Company | 781,667 | |
16,029 | RWE AG | 1,128,134 | |
1,909,801 |
78 |
Shares or | |||||
Principal | |||||
Amount | Security | Value | |||
Canada—1.5% | |||||
17,612 | Canadian Natural Resources, Ltd. | $ 679,759 | |||
16,100 | Shoppers Drug Mart Corporation | 554,603 | |||
1,234,362 | |||||
Italy—1.4% | |||||
355,500 | Terna-Rete Elettrica Nationale SpA | 1,105,891 | |||
China—1.2% | |||||
54,590 | China Mobile, Ltd. | 475,566 | |||
10,400 | China Mobile, Ltd. (ADR) | 452,608 | |||
928,174 | |||||
South Korea—.9% | |||||
13,563 | KT&G Corporation | 748,636 | |||
Norway—.7% | |||||
81,860 | Orkla ASA | 558,907 | |||
Hong Kong—.6% | |||||
110,666 | Cheung Kong Infrastructure Holdings, Ltd. | 442,777 | |||
Belgium—.5% | |||||
1,587 | Colruyt SA | 363,702 | |||
Total Value of Common Stocks (cost $92,196,805) | 73,484,507 | ||||
SHORT-TERM INVESTMENTS—2.8% | |||||
Money Market Fund | |||||
$2,190M | First Investors Cash Reserve Fund, .59% (cost $2,190,000)** | 2,190,000 | |||
Total Value of Investments (cost $94,386,805) | 95.9 | % | 75,674,507 | ||
Other Assets, Less Liabilities | 4.1 | 3,264,923 | |||
Net Assets | 100.0 | % | $78,939,430 |
* Non-income producing
** Affiliated unregistered money market fund available only to First Investors funds and certain accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield at March 31, 2009 (see Note 2).
Summary of Abbreviations:
ADR American Depositary Receipts
See notes to financial statements | 79 |
Statements of Assets and Liabilities
FIRST INVESTORS INCOME FUNDS
March 31, 2009
CASH | INVESTMENT | ||||||||||||||
MANAGEMENT | GOVERNMENT | GRADE | INCOME | ||||||||||||
Assets | |||||||||||||||
Investments in securities: | |||||||||||||||
Cost – Unaffiliated issuers | $219,114,851 | $274,249,504 | $283,919,948 | $519,696,385 | ** | ||||||||||
Cost – Affiliated money market fund (Note 2) | — | 7,028,000 | 2,115,000 | 25,360,000 | |||||||||||
Total cost of investments | $219,114,851 | $281,277,504 | $286,034,948 | $545,056,385 | |||||||||||
Value – Unaffiliated issuers (Note 1A) | $219,114,851 | $282,531,579 | $268,500,941 | $329,929,495 | ** | ||||||||||
Value – Affiliated money market fund (Note 2) | — | 7,028,000 | 2,115,000 | 25,360,000 | |||||||||||
Total value of investments | 219,114,851 | 289,559,579 | 270,615,941 | 355,289,495 | |||||||||||
Cash | 1,775,566 | 58,108 | 50,627 | 90,681 | |||||||||||
Receivables: | |||||||||||||||
Investment securities sold | — | 2,432,736 | 2,658,946 | 2,002,228 | |||||||||||
Interest and dividends | 723,686 | 1,255,681 | 4,460,416 | 10,158,524 | |||||||||||
Shares sold | — | 1,576,995 | 1,080,246 | 677,415 | |||||||||||
Other assets | 61,553 | 56,030 | 34,830 | 293,242 | |||||||||||
Total Assets | 221,675,656 | 294,939,129 | 278,901,006 | 368,511,585 | |||||||||||
Liabilities | |||||||||||||||
Payables: | |||||||||||||||
Investment securities purchased | — | 12,678,850 | 1,326,470 | 845,793 | |||||||||||
Collateral for securities loaned (Note 1G) | — | — | — | 3,828,000 | |||||||||||
Shares redeemed. | 737,135 | 1,358,135 | 409,604 | 483,418 | |||||||||||
Dividends payable | 51,058 | 101,029 | 158,359 | 670,242 | |||||||||||
Accrued advisory fees | 7,059 | 101,913 | 101,068 | 217,844 | |||||||||||
Accrued shareholder servicing costs. | 87,262 | 58,621 | 60,930 | 114,544 | |||||||||||
Accrued expenses | 35,737 | 30,954 | 8,292 | 28,806 | |||||||||||
Total Liabilities | 918,251 | 14,329,502 | 2,064,723 | 6,188,647 | |||||||||||
Net Assets | $220,757,405 | $280,609,627 | $276,836,283 | $362,322,938 | |||||||||||
Net Assets Consist of: | |||||||||||||||
Capital paid in | $220,757,405 | $281,725,014 | $342,407,926 | $750,708,316 | |||||||||||
Undistributed net investment income (loss) | — | (217,746 | ) | (2,207,783 | ) | 1,638,894 | |||||||||
Accumulated net realized loss on investments. | — | (9,179,716 | ) | (47,944,853 | ) | (200,257,382 | ) | ||||||||
Net unrealized appreciation (depreciation) in value of investments | — | 8,282,075 | (15,419,007 | ) | (189,766,890 | ) | |||||||||
Total | $220,757,405 | $280,609,627 | $276,836,283 | $362,322,938 | |||||||||||
Net Assets: | |||||||||||||||
Class A | $215,765,936 | $267,736,818 | $261,911,056 | $351,778,239 | |||||||||||
Class B | $4,991,469 | $12,872,809 | 14,925,227 | $10,544,699 | |||||||||||
Shares outstanding (Note 7): | |||||||||||||||
Class A | 215,765,936 | 24,034,847 | 33,155,860 | 183,255,211 | |||||||||||
Class B | 4,991,469 | 1,155,815 | 1,889,355 | 5,487,053 | |||||||||||
Net asset value and redemption price per share — Class A | $1.00 | # | $11.14 | $7.90 | $1.92 | ||||||||||
Maximum offering price per share — Class A | |||||||||||||||
(Net asset value/.9425)* | N/A | $11.82 | $8.38 | $2.04 | |||||||||||
Net asset value and offering price per share — Class B (Note 7) | 1.00 | 11.14 | 7.90 | 1.92 |
# Also maximum offering price per share. |
* On purchases of $100,000 or more, the sales charge is reduced. |
** Investments at cost and value include $3,828,000 of collateral for securities loaned (Note 1G). |
80 | See notes to financial statements | 81 |
Statements of Assets and Liabilities
FIRST INVESTORS EQUITY FUNDS
March 31, 2009
TOTAL | GROWTH & | ||||||||||||||
RETURN | VALUE | BLUE CHIP | INCOME | GLOBAL | |||||||||||
Assets | |||||||||||||||
Investments in securities: | |||||||||||||||
Cost – Unaffiliated issuers. | $291,155,487 | $291,801,586 | $313,126,565 | $567,391,512 | $198,479,607 | ||||||||||
Cost – Affiliated money market fund (Note 2) | 15,840,000 | 16,200,000 | 8,202,000 | 16,010,000 | 8,605,000 | ||||||||||
Total cost of investments | $306,995,487 | $308,001,586 | $321,328,565 | $583,401,512 | $207,084,607 | ||||||||||
Value – Unaffiliated issuers (Note 1A) | $251,664,017 | $228,874,446 | $284,917,014 | $434,011,138 | $170,781,110 | ||||||||||
Value – Affiliated money market fund (Note 2) | 15,840,000 | 16,200,000 | 8,202,000 | 16,010,000 | 8,605,000 | ||||||||||
Total value of investments | 267,504,017 | 245,074,446 | 293,119,014 | 450,021,138 | 179,386,110 | ||||||||||
Cash | 68,284 | 73,423 | 56,485 | 135,886 | 75,932 | ||||||||||
Receivables: | |||||||||||||||
Investment securities sold | 422,055 | 426,945 | 1,492,271 | 41 | 1,646,116 | ||||||||||
Dividends and interest | 1,591,283 | 795,254 | 709,950 | 729,633 | 590,835 | ||||||||||
Shares sold | 913,954 | 488,643 | 756,191 | 1,248,225 | 284,915 | ||||||||||
Other assets | 38,749 | 41,703 | 50,507 | 78,904 | 50,953 | ||||||||||
Total Assets | 270,538,342 | 246,900,414 | 296,184,418 | 452,213,827 | 182,034,861 | ||||||||||
Liabilities | |||||||||||||||
Payables: | |||||||||||||||
Investment securities purchased | 892,268 | 496,452 | 1,752,439 | 495,820 | 1,293,489 | ||||||||||
Shares redeemed. | 390,831 | 314,114 | 522,603 | 876,632 | 289,515 | ||||||||||
Dividends payable | 9,429 | 20,288 | 7,961 | — | — | ||||||||||
Forward currency contracts (Note 6) | — | — | — | — | 17,083 | ||||||||||
Accrued advisory fees | 171,217 | 152,733 | 182,904 | 277,337 | 142,657 | ||||||||||
Accrued shareholder servicing costs. | 74,272 | 84,992 | 132,276 | 183,499 | 86,482 | ||||||||||
Accrued expenses | 29,713 | 20,698 | 3,586 | 29,309 | 27,993 | ||||||||||
Total Liabilities | 1,567,730 | 1,089,277 | 2,601,769 | 1,862,597 | 1,857,219 | ||||||||||
Net Assets | $268,970,612 | $245,811,137 | $293,582,649 | $450,351,230 | $180,177,642 | ||||||||||
Net Assets Consist of: | |||||||||||||||
Capital paid in | $321,256,932 | $349,971,629 | $428,491,503 | $607,719,152 | $282,772,009 | ||||||||||
Undistributed net investment income (loss) | (725,056 | ) | 1,329,908 | 1,485,891 | (431,008 | ) | (1,647,557 | ) | |||||||
Accumulated net realized loss on investments | |||||||||||||||
and foreign currency transactions | (12,069,794 | ) | (42,563,260 | ) | (108,185,194 | ) | (23,556,540 | ) | (73,247,799 | ) | |||||
Net unrealized depreciation in value of investments | |||||||||||||||
and foreign currency transactions | (39,491,470 | ) | (62,927,140 | ) | (28,209,551 | ) | (133,380,374 | ) | (27,699,011 | ) | |||||
Total | $268,970,612 | $245,811,137 | $293,582,649 | $450,351,230 | $180,177,642 | ||||||||||
Net Assets: | |||||||||||||||
Class A | $250,201,119 | $234,816,663 | $277,088,182 | $424,923,942 | $174,477,497 | ||||||||||
Class B | $18,769,493 | $10,994,474 | $16,494,467 | $25,427,288 | $5,700,145 | ||||||||||
Shares outstanding (Note 7): | |||||||||||||||
Class A | 22,898,885 | 49,831,781 | 19,071,934 | 47,588,971 | 42,975,335 | ||||||||||
Class B | 1,745,043 | 2,370,773 | 1,219,612 | 3,016,326 | 1,592,583 | ||||||||||
Net asset value and redemption price | |||||||||||||||
per share – Class A. | $10.93 | $4.71 | $14.53 | $8.93 | $4.06 | ||||||||||
Maximum offering price per share – Class A | |||||||||||||||
(Net asset value/.9425)* | $11.60 | $5.00 | $15.42 | $9.47 | $4.31 | ||||||||||
Net asset value and offering price per share – | |||||||||||||||
Class B (Note 7) | $10.76 | $4.64 | $13.52 | $8.43 | $3.58 |
* | On purchases of $100,000 or more, the sales charge is reduced. |
82 | See notes to financial statements | 83 |
Statements of Assets and Liabilities
FIRST INVESTORS EQUITY FUNDS
March 31, 2009
SELECT | SPECIAL | ||||||||||||||
GROWTH | OPPORTUNITY | SITUATIONS | INTERNATIONAL | ||||||||||||
Assets | |||||||||||||||
Investments in securities: | |||||||||||||||
Cost – Unaffiliated issuers. | $165,375,363 | $365,987,831 | $211,799,490 | $92,196,805 | |||||||||||
Cost – Affiliated money market fund (Note 2) | 2,745,000 | 1,420,000 | 11,236,000 | 2,190,000 | |||||||||||
Total cost of investments | $168,120,363 | $367,407,831 | $223,035,490 | $94,386,805 | |||||||||||
Value – Unaffiliated issuers (Note 1A) | $152,072,502 | $268,783,795 | $176,749,749 | $73,484,507 | |||||||||||
Value – Affiliated money market fund (Note 2) | 2,745,000 | 1,420,000 | 11,236,000 | 2,190,000 | |||||||||||
Total value of investments | 154,817,502 | 270,203,795 | 187,985,749 | 75,674,507 | |||||||||||
Cash | 54,045 | 88,553 | 72,292 | 42,685 | |||||||||||
Receivables: | |||||||||||||||
Investment securities sold | — | 436 | 883,344 | 831,458 | |||||||||||
Dividends and interest | 53,247 | 500,273 | 102,587 | 666,874 | |||||||||||
Shares sold | 325,638 | 547,455 | 468,350 | 285,014 | |||||||||||
Foreign exchange contracts (Note 6) | — | — | — | 1,853,023 | |||||||||||
Other assets | 27,740 | 48,668 | 31,933 | 13,224 | |||||||||||
Total Assets | 155,278,172 | 271,389,180 | 189,544,255 | 79,366,785 | |||||||||||
Liabilities | |||||||||||||||
Payables: | |||||||||||||||
Investment securities purchased | — | 1,446,570 | 1,406,630 | 136,059 | |||||||||||
Shares redeemed. | 168,893 | 597,321 | 369,450 | 156,659 | |||||||||||
Forward currency contracts (Note 6) | — | — | — | 3,768 | |||||||||||
Accrued advisory fees | 97,616 | 168,008 | 123,358 | 66,301 | |||||||||||
Accrued shareholder servicing costs. | 76,417 | 122,814 | 84,492 | 45,959 | |||||||||||
Accrued expenses | 15,407 | 29,374 | 25,090 | 18,609 | |||||||||||
Total Liabilities | 358,333 | 2,364,087 | 2,009,020 | 427,355 | |||||||||||
Net Assets | $154,919,839 | $269,025,093 | $187,535,235 | $78,939,430 | |||||||||||
Net Assets Consist of: | |||||||||||||||
Capital paid in | $267,555,211 | $380,077,578 | $264,152,498 | $139,536,560 | |||||||||||
Undistributed net investment income (loss) | (478,171 | ) | 376,987 | 382,661 | (2,220,944 | ) | |||||||||
Accumulated net realized loss on investments | |||||||||||||||
and foreign currency transactions | (98,854,340 | ) | (14,225,436 | ) | (41,950,183 | ) | (41,513,910 | ) | |||||||
Net unrealized depreciation in value of investments | |||||||||||||||
and foreign currency transactions | (13,302,861 | ) | (97,204,036 | ) | (35,049,741 | ) | (16,862,276 | ) | |||||||
Total | $154,919,839 | $269,025,093 | $187,535,235 | $78,939,430 | |||||||||||
Net Assets: | |||||||||||||||
Class A | $144,719,163 | $250,522,881 | $180,118,230 | $76,327,835 | |||||||||||
Class B | $10,200,676 | $18,502,212 | $7,417,005 | $2,611,595 | |||||||||||
Shares outstanding (Note 7): | |||||||||||||||
Class A | 31,617,581 | 16,834,955 | 13,114,704 | 11,505,651 | |||||||||||
Class B | 2,393,556 | 1,412,296 | 615,098 | 400,776 | |||||||||||
Net asset value and redemption price | |||||||||||||||
per share – Class A. | $4.58 | $14.88 | $13.73 | $6.63 | |||||||||||
Maximum offering price per share – Class A | |||||||||||||||
(Net asset value/.9425)* | $4.86 | $15.79 | $14.57 | $7.03 | |||||||||||
Net asset value and offering price per share – | |||||||||||||||
Class B (Note 7) | $4.26 | $13.10 | $12.06 | $6.52 |
* | On purchases of $100,000 or more, the sales charge is reduced. |
84 | See notes to financial statements | 85 |
Statements of Operations
FIRST INVESTORS INCOME FUNDS
Six Months Ended March 31, 2009
CASH | INVESTMENT | ||||||||||||||
MANAGEMENT | GOVERNMENT | GRADE | INCOME | ||||||||||||
Investment Income | |||||||||||||||
Income: | |||||||||||||||
Interest. | $1,968,708 | $6,726,372 | $8,298,686 | $20,050,594 | |||||||||||
Dividends | — | — | 446,936 | 2,045,718 | |||||||||||
Dividends from affiliate (Note 2) | — | 63,492 | 44,355 | 134,021 | |||||||||||
Securities lending income | — | — | — | 74,280 | |||||||||||
Total income | 1,968,708 | 6,789,864 | 8,789,977 | 22,304,613 | |||||||||||
Expenses (Notes 1 and 3): | |||||||||||||||
Advisory fees | 571,041 | 850,123 | 893,452 | 1,383,471 | |||||||||||
Distribution plan expenses – Class A | — | 368,426 | 382,978 | 543,932 | |||||||||||
Distribution plan expenses – Class B | 17,302 | 59,980 | 77,121 | 56,441 | |||||||||||
Shareholder servicing costs | 400,540 | 298,743 | 335,376 | 607,201 | |||||||||||
U.S. Treasury Guarantee Program fees (Note 9) | 50,721 | — | — | — | |||||||||||
Professional fees. | 45,476 | 30,082 | 26,076 | 45,605 | |||||||||||
Registration fees | 40,069 | 26,243 | 31,092 | 26,724 | |||||||||||
Custodian fees | 13,721 | 21,588 | 12,227 | 18,643 | |||||||||||
Reports to shareholders | 12,587 | 10,538 | 13,674 | 23,724 | |||||||||||
Trustees’ fees | 7,371 | 8,641 | 9,356 | 13,387 | |||||||||||
Other expenses | 17,730 | 33,968 | 30,700 | 53,546 | |||||||||||
Total expenses | 1,176,558 | 1,708,332 | 1,812,052 | 2,772,674 | |||||||||||
Less: Expenses waived | (266,794 | ) | (248,912 | ) | (268,499 | ) | (74,788 | ) | |||||||
Expenses paid indirectly. | (1,453 | ) | (645 | ) | (724 | ) | (1,532 | ) | |||||||
Net expenses | 908,311 | 1,458,775 | 1,542,829 | 2,696,354 | |||||||||||
Net investment income. | 1,060,397 | 5,331,089 | 7,247,148 | 19,608,259 | |||||||||||
Realized and Unrealized Gain (Loss) on Investments (Note 2): | |||||||||||||||
Net realized gain (loss) on investments | — | 454,868 | (16,495,016 | ) | (18,829,260 | ) | |||||||||
Net unrealized appreciation (depreciation) of investments | — | 8,895,594 | 5,890,488 | (83,226,853 | ) | ||||||||||
Net gain (loss) on investments | — | 9,350,462 | (10,604,528 | ) | (102,056,113 | ) | |||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $1,060,397 | $14,681,551 | $(3,357,380 | ) | $(82,447,854 | ) |
86 | See notes to financial statements | 87 |
Statements of Operations
FIRST INVESTORS EQUITY FUNDS
Six Months Ended March 31, 2009
TOTAL | GROWTH & | ||||||||||||||
RETURN | VALUE | BLUE CHIP | INCOME | GLOBAL | |||||||||||
Investment Income | |||||||||||||||
Dividends | $2,105,304 | (a) | $5,340,450 | (b) | $5,025,721 | (c) | $6,576,008 | (d) | $2,016,877 | (e) | |||||
Dividends from affiliate (Note 2) | 129,104 | 117,494 | 49,232 | 113,844 | 88,232 | ||||||||||
Interest. | 3,492,740 | — | — | — | 1,216 | ||||||||||
Total income | 5,727,148 | 5,457,944 | 5,074,953 | 6,689,852 | 2,106,325 | ||||||||||
Expenses (Notes 1 and 3): | |||||||||||||||
Advisory fees | 1,036,756 | 997,831 | 1,191,024 | 1,783,749 | 939,145 | ||||||||||
Distribution plan expenses – Class A | 384,385 | 380,449 | 449,562 | 682,426 | 278,181 | ||||||||||
Distribution plan expenses – Class B | 101,214 | 62,597 | 94,301 | 142,476 | 31,040 | ||||||||||
Shareholder servicing costs | 421,714 | 467,928 | 709,725 | 1,007,140 | 470,027 | ||||||||||
Professional fees. | 24,234 | 25,383 | 36,167 | 40,947 | 31,635 | ||||||||||
Custodian fees | 18,652 | 11,742 | 13,145 | 20,296 | 82,854 | ||||||||||
Registration fees | 26,022 | 33,321 | 29,183 | 26,660 | 22,889 | ||||||||||
Reports to shareholders | 25,810 | 20,636 | 30,569 | 43,016 | 21,795 | ||||||||||
Trustees’ fees | 9,805 | 9,674 | 11,585 | 17,671 | 6,962 | ||||||||||
Other expenses | 37,499 | 37,822 | 43,731 | 67,464 | 52,028 | ||||||||||
Total expenses | 2,086,091 | 2,047,383 | 2,608,992 | 3,831,845 | 1,936,556 | ||||||||||
Less: Expenses waived | — | — | — | — | (28,750 | ) | |||||||||
Expenses paid indirectly. | (1,027 | ) | (1,087 | ) | (1,310 | ) | (2,104 | ) | (818 | ) | |||||
Net expenses | 2,085,064 | 2,046,296 | 2,607,682 | 3,829,741 | 1,906,988 | ||||||||||
Net investment income. | 3,642,084 | 3,411,648 | 2,467,271 | 2,860,111 | 199,337 | ||||||||||
Realized and Unrealized Gain (Loss) on Investments | |||||||||||||||
(Note 2): | |||||||||||||||
Net realized loss on: | |||||||||||||||
Investments | (8,451,460 | ) | (10,835,677 | ) | (6,808,574 | ) | (19,332,013 | ) | (66,227,124 | ) | |||||
Foreign currency transactions | — | — | — | — | (44,406 | ) | |||||||||
Net realized loss on investments | |||||||||||||||
and foreign currency transactions | (8,451,460 | ) | (10,835,677 | ) | (6,808,574 | ) | (19,332,013 | ) | (66,271,530 | ) | |||||
Net unrealized appreciation (depreciation) of: | |||||||||||||||
Investments | (47,987,436 | ) | (91,872,733 | ) | (115,721,855 | ) | (184,685,623 | ) | (8,155,763 | ) | |||||
Foreign currency transactions | — | — | — | — | 12,963 | ||||||||||
Net unrealized depreciation of investments | |||||||||||||||
and foreign currency transactions | (47,987,436 | ) | (91,872,733 | ) | (115,721,855 | ) | (184,685,623 | ) | (8,142,800 | ) | |||||
Net loss on investments and foreign currency transactions. | (56,438,896 | ) | (102,708,410 | ) | (122,530,429 | ) | (204,017,636 | ) | (74,414,330 | ) | |||||
Net Decrease in Net Assets Resulting from Operations | $(52,796,812 | ) | $(99,296,762 | ) | $(120,063,158 | ) | $(201,157,525 | ) | $(74,214,993 | ) |
(a) | Net of $1,148 foreign taxes withheld |
(b) | Net of $28,972 foreign taxes withheld |
(c) | Net of $19,754 foreign taxes withheld |
(d) | Net of $3,804 foreign taxes withheld |
(e) | Net of $113,934 foreign taxes withheld |
88 | See notes to financial statements | 89 |
Statements of Operations
FIRST INVESTORS EQUITY FUNDS
Six Months Ended March 31, 2009
SELECT | SPECIAL | ||||||||||||||
GROWTH | OPPORTUNITY | SITUATIONS | INTERNATIONAL | ||||||||||||
Investment Income | |||||||||||||||
Dividends | $936,510 | $2,709,572 | (f) | $1,936,089 | $1,121,322 | (g) | |||||||||
Dividends from affiliate (Note 2) | 26,260 | 87,221 | 149,491 | 21,215 | |||||||||||
Interest. | — | — | — | 2,763 | |||||||||||
Total income | 962,770 | 2,796,793 | 2,085,580 | 1,145,300 | |||||||||||
Expenses (Notes 1 and 3): | |||||||||||||||
Advisory fees | 623,009 | 1,074,977 | 977,554 | 413,117 | |||||||||||
Distribution plan expenses – Class A | 231,418 | 398,913 | 282,916 | 122,184 | |||||||||||
Distribution plan expenses – Class B | 59,284 | 104,758 | 41,506 | 14,266 | |||||||||||
Shareholder servicing costs | 429,904 | 697,824 | 475,868 | 277,534 | |||||||||||
Professional fees. | 14,790 | 21,092 | 25,956 | 14,200 | |||||||||||
Custodian fees | 10,140 | 13,282 | 10,727 | 52,621 | |||||||||||
Registration fees | 19,941 | 25,372 | 22,205 | 14,288 | |||||||||||
Reports to shareholders | 20,223 | 28,658 | 21,395 | 12,916 | |||||||||||
Trustees’ fees | 6,041 | 10,527 | 7,173 | 3,032 | |||||||||||
Other expenses | 26,896 | 45,708 | 28,326 | 19,656 | |||||||||||
Total expenses | 1,441,646 | 2,421,111 | 1,893,626 | 943,814 | |||||||||||
Less: Expenses waived | — | — | (189,908 | ) | — | ||||||||||
Expenses paid indirectly. | (705 | ) | (1,305 | ) | (847 | ) | (335 | ) | |||||||
Net expenses | 1,440,941 | 2,419,806 | 1,702,871 | 943,479 | |||||||||||
Net investment income (loss) | (478,171 | ) | 376,987 | 382,709 | 201,821 | ||||||||||
Realized and Unrealized Gain (Loss) on Investments | |||||||||||||||
and Foreign Currency Transactions (Note 2): | |||||||||||||||
Net realized gain (loss) on: | |||||||||||||||
Investments | (65,520,464 | ) | (14,285,900 | ) | (41,903,457 | ) | (25,224,119 | ) | |||||||
Foreign currency transactions | — | — | — | 985,108 | |||||||||||
Net realized loss on investments | |||||||||||||||
and foreign currency transactions | (65,520,464 | ) | (14,285,900 | ) | (41,903,457 | ) | (24,239,011 | ) | |||||||
Net unrealized appreciation (depreciation) of: | |||||||||||||||
Investments | (5,436,487 | ) | (120,033,800 | ) | (37,616,469 | ) | (8,198,166 | ) | |||||||
Foreign currency transactions | — | — | — | 743,071 | |||||||||||
Net unrealized depreciation of investments | |||||||||||||||
and foreign currency transactions | (5,436,487 | ) | (120,033,800 | ) | (37,616,469 | ) | (7,455,095 | ) | |||||||
Net loss on investments and foreign currency transactions. | (70,956,951 | ) | (134,319,700 | ) | (79,519,926 | ) | (31,694,106 | ) | |||||||
Net Decrease in Net Assets Resulting from Operations. | $(71,435,122 | ) | $(133,942,713 | ) | $(79,137,217 | ) | $(31,492,285 | ) |
(f) | Net of $5,814 foreign taxes withheld |
(g) | Net of $110,380 foreign taxes withheld |
90 | See notes to financial statements | 91 |
Statements of Changes in Net Assets
FIRST INVESTORS INCOME FUNDS
CASH MANAGEMENT | GOVERNMENT | INVESTMENT GRADE | INCOME | |||||||||||||||||||||
10/1/08 to | 10/1/07 to | 10/1/08 to | 10/1/07 to | 10/1/08 to | 10/1/07 to | 10/1/08 to | 10/1/07 to | |||||||||||||||||
3/31/09 | 9/30/08 | 3/31/09 | 9/30/08 | 3/31/09 | 9/30/08 | 3/31/09 | 9/30/08 | |||||||||||||||||
Increase (Decrease) in Net Assets From Operations | ||||||||||||||||||||||||
Net investment income | $ | 1,060,397 | $ | 6,356,325 | $ | 5,331,089 | $ | 9,571,332 | $ | 7,247,148 | $ | 14,702,832 | $ | 19,608,259 | $ | 39,939,941 | ||||||||
Net realized gain (loss) on investments | — | — | 454,868 | 241,855 | (16,495,016 | ) | (19,862,926 | ) | (18,829,260 | ) | (23,520,343 | ) | ||||||||||||
Net unrealized appreciation (depreciation) of investments | — | — | 8,895,594 | 2,251,120 | 5,890,488 | (20,764,517 | ) | (83,226,853 | ) | (80,270,992 | ) | |||||||||||||
Net increase (decrease) in net assets resulting | ||||||||||||||||||||||||
from operations | 1,060,397 | 6,356,325 | 14,681,551 | 12,064,307 | (3,357,380 | ) | (25,924,611 | ) | (82,447,854 | ) | (63,851,394 | ) | ||||||||||||
Dividends to Shareholders | ||||||||||||||||||||||||
Net investment income – Class A | (1,054,137 | ) | (6,300,152 | ) | (5,425,822 | ) | (9,508,609 | ) | (7,694,349 | ) | (14,466,779 | ) | (19,243,884 | ) | (39,378,847 | ) | ||||||||
Net investment income – Class B | (6,260 | ) | (56,173 | ) | (223,560 | ) | (433,580 | ) | (393,293 | ) | (901,522 | ) | (537,120 | ) | (1,353,711 | ) | ||||||||
Total dividends | (1,060,397 | ) | (6,356,325 | ) | (5,649,382 | ) | (9,942,189 | ) | (8,087,642 | ) | (15,368,301 | ) | (19,781,004 | ) | (40,732,558 | ) | ||||||||
Share Transactions * | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Proceeds from shares sold | 105,289,111 | 228,564,733 | 53,424,025 | 53,495,830 | 27,686,005 | 76,586,604 | 15,440,302 | 45,861,746 | ||||||||||||||||
Reinvestment of dividends | 1,026,286 | 6,186,351 | 4,841,253 | 8,447,996 | 6,797,929 | 12,726,546 | 15,063,059 | 31,092,107 | ||||||||||||||||
Cost of shares redeemed | (124,645,088 | ) | (218,169,828 | ) | (27,428,602 | ) | (34,189,386 | ) | (29,328,865 | ) | (53,576,760 | ) | (39,220,953 | ) | (79,571,081 | ) | ||||||||
(18,329,691 | ) | 16,581,256 | 30,836,676 | 27,754,440 | 5,155,069 | 35,736,390 | (8,717,592 | ) | (2,617,228 | ) | ||||||||||||||
Class B: | ||||||||||||||||||||||||
Proceeds from shares sold | 4,052,192 | 6,076,772 | 2,663,029 | 2,672,620 | 1,227,662 | 2,841,907 | 684,449 | 1,365,640 | ||||||||||||||||
Reinvestment of dividends | 6,062 | 52,562 | 207,237 | 400,468 | 354,707 | 819,873 | 427,327 | 1,062,813 | ||||||||||||||||
Cost of shares redeemed | (2,630,609 | ) | (4,896,034 | ) | (2,030,114 | ) | (3,225,273 | ) | (3,397,044 | ) | (5,550,881 | ) | (2,465,654 | ) | (8,257,605 | ) | ||||||||
1,427,645 | 1,233,300 | 840,152 | (152,185 | ) | (1,814,675 | ) | (1,889,101 | ) | (1,353,878 | ) | (5,829,152 | ) | ||||||||||||
Net increase (decrease) from share transactions | (16,902,046 | ) | 17,814,556 | 31,676,828 | 27,602,255 | 3,340,394 | 33,847,289 | (10,071,470 | ) | (8,446,380 | ) | |||||||||||||
Net increase (decrease) in net assets | (16,902,046 | ) | 17,814,556 | 40,708,997 | 29,724,373 | (8,104,628 | ) | (7,445,623 | ) | (112,300,328 | ) | (113,030,332 | ) | |||||||||||
Net Assets | ||||||||||||||||||||||||
Beginning of period | 237,659,451 | 219,844,895 | 239,900,630 | 210,176,257 | 284,940,911 | 292,386,534 | 474,623,266 | 587,653,598 | ||||||||||||||||
End of period † | $ | 220,757,405 | $ | 237,659,451 | $ | 280,609,627 | $ | 239,900,630 | $ | 276,836,283 | $ | 284,940,911 | $ | 362,322,938 | $ | 474,623,266 | ||||||||
† Includes undistributed net investment income (deficit) of | $ | — | $ | — | $ | (217,746 | ) | $ | 100,547 | $ | (2,207,783 | ) | $ | (1,367,287 | ) | $ | 1,638,894 | $ | 1,811,639 | |||||
* Shares Issued and Redeemed | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Sold | 105,289,111 | 228,564,733 | 4,887,001 | 4,941,143 | 3,495,324 | 8,193,353 | 7,781,489 | 16,524,176 | ||||||||||||||||
Issued for dividends reinvested | 1,026,286 | 6,186,351 | 442,575 | 780,509 | 863,292 | 1,373,634 | 7,728,993 | 11,314,035 | ||||||||||||||||
Redeemed. | (124,645,088 | ) | (218,169,828 | ) | (2,510,423 | ) | (3,164,061 | ) | (3,709,067 | ) | (5,787,841 | ) | (19,657,374 | ) | (28,751,382 | ) | ||||||||
Net increase (decrease) in Class A shares outstanding | (18,329,691 | ) | 16,581,256 | 2,819,153 | 2,557,591 | 649,549 | 3,779,146 | (4,146,892 | ) | (913,171 | ) | |||||||||||||
Class B: | ||||||||||||||||||||||||
Sold | 4,052,192 | 6,076,772 | 243,801 | 246,088 | 155,328 | 302,164 | 348,573 | 491,818 | ||||||||||||||||
Issued for dividends reinvested | 6,062 | 52,562 | 18,954 | 36,992 | 45,094 | 88,380 | 219,268 | 386,088 | ||||||||||||||||
Redeemed. | (2,630,609 | ) | (4,896,034 | ) | (186,154 | ) | (298,716 | ) | (430,019 | ) | (595,157 | ) | (1,221,074 | ) | (2,979,556 | ) | ||||||||
Net increase (decrease) in Class B shares outstanding | 1,427,645 | 1,233,300 | 76,601 | (15,636 | ) | (229,597 | ) | (204,613 | ) | (653,233 | ) | (2,101,650 | ) |
92 | See notes to financial statements | 93 |
Statements of Changes in Net Assets
FIRST INVESTORS EQUITY FUNDS
TOTAL RETURN | VALUE | BLUE CHIP | GROWTH & INCOME | |||||||||||||||||||||
10/1/08 to | 10/1/07 to | 10/1/08 to | 10/1/07 to | 10/1/08 to | 10/1/07 to | 10/1/08 to | 10/1/07 to | |||||||||||||||||
3/31/09 | 9/30/08 | 3/31/09 | 9/30/08 | 3/31/09 | 9/30/08 | 3/31/09 | 9/30/08 | |||||||||||||||||
Increase (Decrease) in Net Assets From Operations | ||||||||||||||||||||||||
Net investment income | $ | 3,642,084 | $ | 8,357,946 | $ | 3,411,648 | $ | 6,282,240 | $ | 2,467,271 | $ | 4,058,380 | $ | 2,860,111 | $ | 6,911,851 | ||||||||
Net realized gain (loss) on investments | (8,451,460 | ) | (1,608,059 | ) | (10,835,677 | ) | (4,080,397 | ) | (6,808,574 | ) | (6,119,538 | ) | (19,332,013 | ) | 1,823,903 | |||||||||
Net unrealized depreciation of investments | (47,987,436 | ) | (55,680,582 | ) | (91,872,733 | ) | (75,530,195 | ) | (115,721,855 | ) | (104,718,281 | ) | (184,685,623 | ) | (192,026,266 | ) | ||||||||
Net decrease in net assets resulting from operations | (52,796,812 | ) | (48,930,695 | ) | (99,296,762 | ) | (73,328,352 | ) | (120,063,158 | ) | (106,779,439 | ) | (201,157,525 | ) | (183,290,512 | ) | ||||||||
Distributions to Shareholders | ||||||||||||||||||||||||
Net investment income – Class A | (4,474,637 | ) | (8,482,572 | ) | (2,900,815 | ) | (6,075,415 | ) | (2,167,047 | ) | (3,843,653 | ) | (5,492,497 | ) | (5,193,481 | ) | ||||||||
Net investment income – Class B | (287,616 | ) | (544,177 | ) | (98,427 | ) | (206,356 | ) | (77,746 | ) | (67,462 | ) | (312,818 | ) | (90,794 | ) | ||||||||
Net realized gains – Class A | — | (6,767,191 | ) | — | — | — | — | (1,098,693 | ) | (10,953,020 | ) | |||||||||||||
Net realized gains – Class B | — | (625,604 | ) | — | — | — | — | (73,074 | ) | (913,158 | ) | |||||||||||||
Total distributions. | (4,762,253 | ) | (16,419,544 | ) | (2,999,242 | ) | (6,281,771 | ) | (2,244,793 | ) | (3,911,115 | ) | (6,977,082 | ) | (17,150,453 | ) | ||||||||
Share Transactions * | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Proceeds from shares sold | 22,665,195 | 54,926,724 | 22,913,233 | 61,763,002 | 21,163,119 | 50,687,564 | 38,748,428 | 109,163,017 | ||||||||||||||||
Reinvestment of distributions. | 4,404,598 | 15,063,988 | 2,858,858 | 5,987,167 | 2,148,611 | 3,808,942 | 6,533,076 | 16,025,049 | ||||||||||||||||
Cost of shares redeemed | (28,075,660 | ) | (60,728,853 | ) | (27,205,227 | ) | (73,184,887 | ) | (27,142,625 | ) | (82,062,296 | ) | (48,304,612 | ) | (123,461,494 | ) | ||||||||
(1,005,867 | ) | 9,261,859 | (1,433,136 | ) | (5,434,718 | ) | (3,830,895 | ) | (27,565,790 | ) | (3,023,108 | ) | 1,726,572 | |||||||||||
Class B: | ||||||||||||||||||||||||
Proceeds from shares sold | 1,043,892 | 2,333,837 | 805,991 | 2,259,660 | 1,000,219 | 2,402,580 | 1,687,232 | 4,516,660 | ||||||||||||||||
Reinvestment of distributions. | 283,985 | 1,161,520 | 97,711 | 204,520 | 77,502 | 67,354 | 384,206 | 1,001,473 | ||||||||||||||||
Cost of shares redeemed | (3,248,765 | ) | (7,419,892 | ) | (2,384,099 | ) | (7,612,489 | ) | (3,628,888 | ) | (13,705,467 | ) | (5,084,490 | ) | (17,146,873 | ) | ||||||||
(1,920,888 | ) | (3,924,535 | ) | (1,480,397 | ) | (5,148,309 | ) | (2,551,167 | ) | (11,235,533 | ) | (3,013,052 | ) | (11,628,740 | ) | |||||||||
Net increase (decrease) from share transactions | (2,926,755 | ) | 5,337,324 | (2,913,533 | ) | (10,583,027 | ) | (6,382,062 | ) | (38,801,323 | ) | (6,036,160 | ) | (9,902,168 | ) | |||||||||
Net decrease in net assets. | (60,485,820 | ) | (60,012,915 | ) | (105,209,537 | ) | (90,193,150 | ) | (128,690,013 | ) | (149,491,877 | ) | (214,170,767 | ) | (210,343,133 | ) | ||||||||
Net Assets | ||||||||||||||||||||||||
Beginning of period | 329,456,432 | 389,469,347 | 351,020,674 | 441,213,824 | 422,272,662 | 571,764,539 | 664,521,997 | 874,865,130 | ||||||||||||||||
End of period†. | $ | 268,970,612 | $ | 329,456,432 | $ | 245,811,137 | $ | 351,020,674 | $ | 293,582,649 | $ | 422,272,662 | $ | 450,351,230 | $ | 664,521,997 | ||||||||
†Includes undistributed net investment income (deficit) of | $ | (725,056 | ) | $ | 978,375 | $ | 1,329,908 | $ | 917,502 | $ | 1,485,891 | $ | 1,263,414 | $ | (431,008 | ) | $ | 2,514,196 | ||||||
*Shares Issued and Redeemed | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Sold | 2,021,600 | 3,736,223 | 4,524,314 | 8,384,742 | 1,358,928 | 2,197,104 | 4,081,914 | 7,284,893 | ||||||||||||||||
Issued for distributions reinvested | 384,106 | 1,020,067 | 568,179 | 840,055 | 138,455 | 169,700 | 657,251 | 1,021,080 | ||||||||||||||||
Redeemed. | (2,501,469 | ) | (4,155,693 | ) | (5,407,351 | ) | (9,967,213 | ) | (1,749,766 | ) | (3,565,342 | ) | (5,104,064 | ) | (8,286,295 | ) | ||||||||
Net increase (decrease) in Class A shares outstanding | (95,763 | ) | 600,597 | (314,858 | ) | (742,416 | ) | (252,383 | ) | (1,198,538 | ) | (364,899 | ) | 19,678 | ||||||||||
Class B: | ||||||||||||||||||||||||
Sold | 94,785 | 162,847 | 163,057 | 311,458 | 68,668 | 111,952 | 187,266 | 318,321 | ||||||||||||||||
Issued for distributions reinvested | 25,024 | 79,189 | 19,695 | 28,911 | 5,337 | 3,069 | 40,829 | 65,169 | ||||||||||||||||
Redeemed. | (295,602 | ) | (509,436 | ) | (476,367 | ) | (1,051,771 | ) | (245,197 | ) | (633,838 | ) | (555,098 | ) | (1,209,209 | ) | ||||||||
Net decrease in Class B shares outstanding | (175,793 | ) | (267,400 | ) | (293,615 | ) | (711,402 | ) | (171,192 | ) | (518,817 | ) | (327,003 | ) | (825,719 | ) |
94 | See notes to financial statements | 95 |
Statements of Changes in Net Assets
FIRST INVESTORS EQUITY FUNDS
GLOBAL | SELECT GROWTH | OPPORTUNITY | SPECIAL SITUATIONS | ||||||||||||||||||||||
10/1/08 to | 10/1/07 to | 10/1/08 to | 10/1/07 to | 10/1/08 to | 10/1/07 to | 10/1/08 to | 10/1/07 to | ||||||||||||||||||
3/31/09 | 9/30/08 | 3/31/09 | 9/30/08 | 3/31/09 | 9/30/08 | 3/31/09 | 9/30/08 | ||||||||||||||||||
Increase (Decrease) in Net Assets From Operations | |||||||||||||||||||||||||
Net investment income (loss) | $ | 199,337 | $ | 1,143,022 | $ | (478,171 | ) | $ | (1,423,106 | ) | $ | 376,987 | $ | (335,753 | ) | $ | 382,709 | $ | 317,458 | ||||||
Net realized gain (loss) on investments | |||||||||||||||||||||||||
and foreign currency transactions | (66,271,530 | ) | (2,586,400 | ) | (65,520,464 | ) | (33,331,034 | ) | (14,285,900 | ) | 11,704,587 | (41,903,457 | ) | 7,202,882 | |||||||||||
Net unrealized depreciation of investments | |||||||||||||||||||||||||
and foreign currency transactions | (8,142,800 | ) | (85,621,345 | ) | (5,436,487 | ) | (33,242,861 | ) | (120,033,800 | ) | (111,901,468 | ) | (37,616,469 | ) | (46,989,996 | ) | |||||||||
Net decrease in net assets resulting from operations | (74,214,993 | ) | (87,064,723 | ) | (71,435,122 | ) | (67,997,001 | ) | (133,942,713 | ) | (100,532,634 | ) | (79,137,217 | ) | (39,469,656 | ) | |||||||||
Distributions to Shareholders | |||||||||||||||||||||||||
Net investment income – Class A | (1,700,458 | ) | (1,935,582 | ) | — | — | — | (2,157,616 | ) | (316,738 | ) | — | |||||||||||||
Net investment income – Class B | (53,370 | ) | (88,410 | ) | — | — | — | (241,374 | ) | (769 | ) | — | |||||||||||||
Net realized gains – Class A | — | (39,760,740 | ) | — | (34,525,068 | ) | (10,298,044 | ) | (40,556,491 | ) | (6,706,340 | ) | (14,772,999 | ) | |||||||||||
Net realized gains – Class B | — | (1,816,126 | ) | — | (3,724,631 | ) | (918,723 | ) | (4,537,080 | ) | (335,771 | ) | (966,711 | ) | |||||||||||
Total distributions. | (1,753,828 | ) | (43,600,858 | ) | — | (38,249,699 | ) | (11,216,767 | ) | (47,492,561 | ) | (7,359,618 | ) | (15,739,710 | ) | ||||||||||
Share Transactions * | |||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||
Proceeds from shares sold | 13,297,748 | 51,429,580 | 17,942,429 | 60,620,663 | 22,853,737 | 64,628,411 | 14,347,444 | 41,157,489 | |||||||||||||||||
Reinvestment of distributions. | 1,665,406 | 41,083,108 | — | 34,371,915 | 10,254,773 | 42,542,593 | 6,983,765 | 14,700,522 | |||||||||||||||||
Cost of shares redeemed | (15,950,886 | ) | (40,792,493 | ) | (14,424,557 | ) | (33,794,385 | ) | (25,876,354 | ) | (76,137,000 | ) | (16,747,114 | ) | (40,045,712 | ) | |||||||||
(987,732 | ) | 51,720,195 | 3,517,872 | 61,198,193 | 7,232,156 | 31,034,004 | 4,584,095 | 15,812,299 | |||||||||||||||||
Class B: | |||||||||||||||||||||||||
Proceeds from shares sold | 586,759 | 1,994,555 | 640,408 | 2,501,234 | 1,069,117 | 3,091,684 | 387,875 | 1,305,910 | |||||||||||||||||
Reinvestment of distributions. | 53,157 | 1,896,632 | — | 3,702,717 | 916,291 | 4,761,120 | 335,504 | 963,948 | |||||||||||||||||
Cost of shares redeemed | (1,124,516 | ) | (4,097,969 | ) | (2,994,784 | ) | (3,964,542 | ) | (4,067,679 | ) | (13,013,176 | ) | (1,652,529 | ) | (4,810,972 | ) | |||||||||
(484,600 | ) | (206,782 | ) | (2,354,376 | ) | 2,239,409 | (2,082,271 | ) | (5,160,372 | ) | (929,150 | ) | (2,541,114 | ) | |||||||||||
Net increase (decrease) from share transactions | (1,472,332 | ) | 51,513,413 | 1,163,496 | 63,437,602 | 5,149,885 | 25,873,632 | 3,654,945 | 13,271,185 | ||||||||||||||||
Net decrease in net assets. | (77,441,153 | ) | (79,152,168 | ) | (70,271,626 | ) | (42,809,098 | ) | (140,009,595 | ) | (122,151,563 | ) | (82,841,890 | ) | (41,938,181 | ) | |||||||||
Net Assets | |||||||||||||||||||||||||
Beginning of period | 257,618,795 | 336,770,963 | 225,191,465 | 268,000,563 | 409,034,688 | 531,186,251 | 270,377,125 | 312,315,306 | |||||||||||||||||
End of period† | $ | 180,177,642 | $ | 257,618,795 | $ | 154,919,839 | $ | 225,191,465 | $ | 269,025,093 | $ | 409,034,688 | $ | 187,535,235 | $ | 270,377,125 | |||||||||
†Includes undistributed net investment income (deficit) of | $ | (1,647,557 | ) | $ | (93,065 | ) | $ | (478,171 | ) | $ | — | $ | 376,987 | $ | — | $ | 382,661 | $ | 317,458 | ||||||
*Shares Issued and Redeemed | |||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||
Sold | 3,091,115 | 7,067,592 | 3,599,195 | 7,496,389 | 1,427,292 | 2,401,751 | 988,039 | 1,867,242 | |||||||||||||||||
Issued for distributions reinvested | 370,090 | 5,206,984 | — | 3,919,261 | 620,749 | 1,490,630 | 471,557 | 625,820 | |||||||||||||||||
Redeemed. | (3,736,328 | ) | (5,614,081 | ) | (2,946,349 | ) | (4,199,720 | ) | (1,624,296 | ) | (2,831,995 | ) | (1,155,044 | ) | (1,820,109 | ) | |||||||||
Net increase (decrease) in Class A shares outstanding | (275,123 | ) | 6,660,495 | 652,846 | 7,215,930 | 423,745 | 1,060,386 | 304,552 | 672,953 | ||||||||||||||||
Class B: | |||||||||||||||||||||||||
Sold | 160,481 | 306,217 | 140,586 | 323,798 | 76,212 | 127,952 | 30,592 | 65,821 | |||||||||||||||||
Issued for distributions reinvested | 13,356 | 270,176 | — | 449,359 | 62,889 | 186,857 | 25,749 | 46,166 | |||||||||||||||||
Redeemed. | (297,932 | ) | (619,922 | ) | (618,695 | ) | (526,068 | ) | (282,488 | ) | (538,141 | ) | (126,676 | ) | (245,486 | ) | |||||||||
Net increase (decrease) in Class B shares outstanding | (124,095 | ) | (43,529 | ) | (478,109 | ) | 247,089 | (143,387 | ) | (223,332 | ) | (70,335 | ) | (133,499 | ) |
96 | See notes to financial statements | 97 |
Statements of Changes in Net Assets
FIRST INVESTORS EQUITY FUNDS
INTERNATIONAL | ||||||||
10/1/08 to | 10/1/07 to | |||||||
3/31/09 | 9/30/08 | |||||||
Increase (Decrease) in Net Assets From Operations | ||||||||
Net investment income | $ | 201,821 | $ | 213,540 | ||||
Net realized loss on investments | ||||||||
and foreign currency transactions | (24,239,011 | ) | (14,285,235 | ) | ||||
Net unrealized depreciation of investments | ||||||||
and foreign currency transactions | (7,455,095 | ) | (23,330,472 | ) | ||||
Net decrease in net assets resulting from operations | (31,492,285 | ) | (37,402,167 | ) | ||||
Dividends to Shareholders | ||||||||
Net investment income – Class A | (1,461,636 | ) | (2,659,071 | ) | ||||
Net investment income – Class B | (46,959 | ) | (111,221 | ) | ||||
Total dividends | (1,508,595 | ) | (2,770,292 | ) | ||||
Share Transactions * | ||||||||
Class A: | ||||||||
Proceeds from shares sold | 10,941,379 | 61,600,305 | ||||||
Reinvestment of dividends | 1,452,292 | 2,652,722 | ||||||
Cost of shares redeemed | (8,910,307 | ) | (17,297,672 | ) | ||||
3,483,364 | 46,955,355 | |||||||
Class B: | ||||||||
Proceeds from shares sold | 279,662 | 1,980,202 | ||||||
Reinvestment of dividends | 46,946 | 111,198 | ||||||
Cost of shares redeemed | (445,418 | ) | (870,776 | ) | ||||
(118,810 | ) | 1,220,624 | ||||||
Net increase from share transactions | 3,364,554 | 48,175,979 | ||||||
Net increase (decrease) in net assets | (29,636,326 | ) | 8,003,520 | |||||
Net Assets | ||||||||
Beginning of period | 108,575,756 | 100,572,236 | ||||||
End of period † | $ | 78,939,430 | $ | 108,575,756 | ||||
†Includes undistributed net investment deficit of | $ | (2,220,944 | ) | $ | (914,170 | ) | ||
*Shares Issued and Redeemed | ||||||||
Class A: | ||||||||
Sold | 1,507,562 | 5,014,211 | ||||||
Reinvestment of dividends | 189,594 | 196,789 | ||||||
Redeemed. | (1,234,357 | ) | (1,479,150 | ) | ||||
Net increase in Class A shares outstanding | 462,799 | 3,731,850 | ||||||
Class B: | ||||||||
Sold | 39,205 | 161,304 | ||||||
Reinvestment of dividends | 6,235 | 8,336 | ||||||
Redeemed. | (60,850 | ) | (73,967 | ) | ||||
Net increase (decrease) in Class B shares outstanding | (15,410 | ) | 95,673 |
98 | See notes to financial statements |
This page left intentionally blank.
99 |
Notes to Financial Statements
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
March 31, 2009
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, Opportunity 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, liab ilities and operations of each Fund. The objective of each Fund as of March 31, 2009 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 seeks high current income.
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 seeks long-term capital growth.
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.
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
100 |
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. Securities 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 securities that are held by the Funds. Examples of such events include trading halts, natural disasters, political events and issuer-specific developments. If the Valuation Committee decides that such events warrant using fair value estimates, it will take such events into consideration in determining the fair values of such securities. If market 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 or if a foreign market is closed. For valuation purposes, where applicable, quo tations of foreign securities in foreign currency are translated to U.S. dollar equivalents using the foreign exchange quotation in effect. At March 31, 2009, Fund For Income held nine securities that were fair valued by its Valuation Committee with an aggregate value of $4,223,172, representing 1.2% of the Fund’s net assets. At March 31, 2009, fair value pricing was used for certain foreign securities in the Global Fund and International Fund portfolios.
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 between its acquisition cost and market value at maturity is amortized on a straight-line basis over the remaining life of the instrument. The effect of changes in the market value of a security as a result of fluctuating interest rates is not taken into account and thus the amortized cost method of valuation may result in the value of a security being higher or lower than its actual market value.
Adoption of Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (“FAS 157”) — In September 2006, the Financial Accounting Standards Board issued FAS 157 effective for fiscal years beginning after November 15, 2007.
101 |
Notes to Financial Statements (continued)
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
March 31, 2009
This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. The Funds have adopted FAS 157 as of October 1, 2008. The three levels of the fair value hierarchy under FAS 157 are described below:
Level 1 — quoted prices in active markets for identical securities
Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The summary of inputs used to value each Fund’s net assets as of March 31, 2009 is as follows:
Level 2 | |||||||||||
Other | Level 3 | ||||||||||
Level 1 | Significant | Significant | |||||||||
Quoted | Observable | Unobservable | |||||||||
Fund | Total | Prices | Inputs | Inputs | |||||||
Cash Management | $219,114,851 | $ | — | $219,114,851 | $ | — | |||||
Government | 289,559,579 | 7,028,000 | 282,531,579 | — | |||||||
Investment Grade | 270,615,941 | 2,115,000 | 268,500,941 | — | |||||||
Fund For Income | 355,289,495 | 32,273,440 | 318,792,883 | 4,223,172 | |||||||
Total Return | 267,504,017 | 157,889,867 | 109,614,150 | — | |||||||
Value | 245,074,446 | 245,074,446 | — | — | |||||||
Blue Chip | 293,119,014 | 293,119,014 | — | — | |||||||
Growth & Income | 450,021,138 | 450,021,138 | — | — | |||||||
Global | 179,386,110 | 107,117,505 | 72,268,605 | — | |||||||
Select Growth | 154,817,502 | 154,817,502 | — | — | |||||||
Opportunity | 270,203,795 | 270,203,795 | — | — | |||||||
Special Situations | 187,985,749 | 187,985,749 | — | — | |||||||
International | 75,674,507 | 16,607,169 | 59,067,338 | — |
102 |
The following is a reconciliation of Fund investments valued using Level 3 inputs for the period:
Balance, September 30, 2008 | $ | 3,361,199 | ||
Net purchases (sales) | — | |||
Change in unrealized appreciation (depreciation) | (2,695,115 | ) | ||
Realized gain (loss) | — | |||
Transfer in and/or out of Level 3 | 3,557,088 | |||
Balance, March 31, 2009 | $ | 4,223,172 |
B. Federal Income Taxes—No provision has been made for federal income taxes on net income or capital gains since it is the policy of each Fund to continue to comply with the special provisions of the Internal Revenue Code applicable to investment companies, and to make sufficient distributions of income and capital gains (in excess of any available capital loss carryovers) to relieve it from all, or substantially all, such taxes. At September 30, 2008, capital loss carryovers were as follows:
Year Capital Loss Carryovers Expire | ||||||||||||||||||||||||||||
Fund | Total | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |||||||||||||||||||
Government | $ | 9,634,584 | $ | 2,144,197 | $ | — | $ | 54,921 | $ | 2,120,906 | $ | 1,600,894 | $ | 740,643 | $ | 1,909,473 | $ | 1,063,550 | ||||||||||
Investment Grade… | 8,943,990 | 1,715,940 | 27,419 | 407,283 | 1,356,376 | 14 | 741,116 | 4,294,433 | 401,409 | |||||||||||||||||||
Fund For Income… | 157,563,760 | 13,810,649 | 18,563,112 | 52,099,335 | 25,740,298 | 10,200,012 | 7,456,986 | 24,660,250 | 5,033,118 | |||||||||||||||||||
Value | 21,180,006 | — | — | 21,180,006 | — | — | — | — | — | |||||||||||||||||||
Blue Chip* | 85,248,208 | — | 14,615,567 | 70,632,641 | — | — | — | — | — | |||||||||||||||||||
International | 1,635,239 | — | — | — | — | — | — | 82,339 | 1,552,900 | |||||||||||||||||||
Select Growth | 2,098,139 | — | — | — | — | — | — | — | 2,098,139 |
*For Blue Chip Fund, $3,583,654 of the $85,248,208 capital loss carryover was acquired in the reorganization with the Focused Equity Fund. Due to the reorganization, the Fund will have available for utilization $2,138,552 for the taxable year 2010 and $1,445,102 for the taxable year 2011. These capital loss carryovers will expire as follows: $2,832,002 in 2010 and $751,652 in 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 2005 to 2008 and has determined the adoption of FIN 48 had no impact on the financial statements of the Funds.
103 |
Notes to Financial Statements (continued)
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
March 31, 2009
C. Distributions to Shareholders—Dividends from net investment income of the Government 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 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 ma y 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. 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.
F. 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.
104 |
Net realized and unrealized gains and losses on foreign currency transactions include gains and losses from the sales of foreign currency and gains and losses on accrued foreign dividends and related withholding taxes.
G. 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 permissible 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, 2009, was $2,639,749 (including $256,994 of accrued interest), for which the Fund received cash collateral of $3,828,000.
H. Other—Security transactions are generally accounted for on the date the securities are purchased 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, 2009, the Bank of New York Mellon, custodian of each Fund (other than Global Fund and International Fund), has provided credits in the amount of $658 for the Income Funds and $358 for the Equity Funds against custodian charges based on the uninvested cash balances of these Funds. The Funds also reduced expenses through brokerage service arrangements. For the six months ended March 31, 2009, expenses were reduced by $3,696 for the Income Funds and by $9,180 for the Equity Funds under these a rrangements.
2. Security Transactions—For the six months ended March 31, 2009, 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:
105 |
Notes to Financial Statements (continued)
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
March 31, 2009
Long-Term U.S. | |||||||||||||
Securities | Government Obligations | ||||||||||||
Cost of | Proceeds | Cost of | Proceeds | ||||||||||
Fund | Purchases | of Sales | Purchases | of Sales | |||||||||
Government | $ | — | $ | — | $ | 90,606,144 | $ | 52,731,399 | |||||
Investment Grade | 88,460,556 | 64,451,673 | 14,470,908 | 36,297,133 | |||||||||
Fund For Income | 21,797,480 | 36,465,829 | — | — | |||||||||
Total Return | 68,852,108 | 49,610,280 | 11,334,431 | 30,072,357 | |||||||||
Value | 24,789,143 | 25,236,785 | — | — | |||||||||
Blue Chip | 14,845,800 | 28,276,387 | — | — | |||||||||
Growth & Income | 71,439,101 | 86,190,312 | — | — | |||||||||
Global | 143,677,324 | 140,851,502 | — | — | |||||||||
Select Growth | 117,584,737 | 115,882,357 | — | — | |||||||||
Opportunity | 59,299,433 | 49,294,165 | — | — | |||||||||
Special Situations | 66,022,990 | 47,926,065 | — | — | |||||||||
International | 39,362,079 | 35,981,247 | — | — |
At March 31, 2009, 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 | $281,277,504 | $ | 8,304,596 | $ | 22,521 | $ | 8,282,075 | |||||||||||
Investment Grade | 288,007,223 | 2,423,753 | 19,815,035 | (17,391,282 | ) | |||||||||||||
Fund For Income | 542,289,643 | 1,635,648 | 192,463,796 | (190,828,148 | ) | |||||||||||||
Total Return | 308,920,988 | 16,340,196 | 57,757,167 | (41,416,971 | ) | |||||||||||||
Value | 308,020,690 | 18,963,997 | 81,910,241 | (62,946,244 | ) | |||||||||||||
Blue Chip | 328,190,897 | 41,515,643 | 76,587,527 | (35,071,884 | ) | |||||||||||||
Growth & Income | 586,782,873 | 52,322,207 | 189,083,942 | (136,761,735 | ) | |||||||||||||
Global | 209,413,154 | 6,442,615 | 36,469,659 | (30,027,044 | ) | |||||||||||||
Select Growth | 168,120,363 | 5,580,597 | 18,883,458 | (13,302,861 | ) | |||||||||||||
Opportunity | 367,410,457 | 20,603,821 | 117,810,483 | (97,206,662 | ) | |||||||||||||
Special Situations | 223,082,219 | 8,749,236 | 43,845,706 | (35,096,470 | ) | |||||||||||||
International* | 95,226,402 | — | 19,551,894 | (19,551,894 | ) |
*Aggregate cost includes PFIC income of $586,401 for International Fund.
106 |
Certain of the Funds may invest in First Investors Cash Reserve Fund, LLC (“Cash Reserve Fund”), an affiliated unregistered money market fund managed by First Investors Management Company, Inc. During the six months ended March 31, 2009, purchases, sales and dividend income earned by the Funds that invested in the Cash Reserve Fund were as follows:
Value at | Purchase | Sales | Value at | Dividend | ||||||||||||||||||
Fund | 9/30/08 | Shares/Cost | Shares/Costs | 3/31/09 | Income | |||||||||||||||||
Government | $ | 6,785,000 | $ | 68,203,000 | $ | 67,960,000 | $ | 7,028,000 | $ | 63,492 | ||||||||||||
Investment Grade | 5,750,000 | 67,650,000 | 71,285,000 | 2,115,000 | 44,355 | |||||||||||||||||
Fund For Income | 16,005,000 | 49,705,000 | 40,350,000 | 25,360,000 | 134,021 | |||||||||||||||||
Total Return | 3,400,000 | 69,165,000 | 56,725,000 | 15,840,000 | 129,104 | |||||||||||||||||
Value | 18,480,000 | 17,280,000 | 19,560,000 | 16,200,000 | 117,494 | |||||||||||||||||
Blue Chip | 1,225,000 | 21,942,000 | 14,965,000 | 8,202,000 | 49,232 | |||||||||||||||||
Growth & Income | 5,890,000 | 63,095,000 | 52,975,000 | 16,010,000 | 113,844 | |||||||||||||||||
Global | 13,310,000 | 36,455,000 | 41,160,000 | 8,605,000 | 88,232 | |||||||||||||||||
Select Growth | 5,150,000 | 51,000,000 | 53,405,000 | 2,745,000 | 26,260 | |||||||||||||||||
Opportunity | 12,900,000 | 39,410,000 | 50,890,000 | 1,420,000 | 87,221 | |||||||||||||||||
Special Situations | 34,010,000 | 25,374,000 | 48,148,000 | 11,236,000 | 149,491 | |||||||||||||||||
International | 2,450,000 | 22,030,000 | 22,290,000 | 2,190,000 | 21,215 |
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, 2009, total trustees fees accrued by the Income Funds and Equity Funds amounted to $38,755 and $82,470, 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, 2008 to January 31, 2009, FIMCO has voluntarily waived $105,040 in advisory fees to limit the Fund’s overall expense ratio to .80% on Class A shares and 1.55% on Class B shares. During the period February 1, 2009 to March 31, 2009, FIMCO has voluntarily waived $161,754 in advisory fees to limit the Fund’s overall expense ratio to .60% on Class A shares and 1.35% on Class B shares.
107 |
Notes to Financial Statements (continued)
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
March 31, 2009
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. For the six months ended March 31, 2009, FIMCO has voluntarily waived $248,912 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. For the six months ended March 31, 2009, FIMCO has voluntarily waived $268,499 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. FIMCO has voluntarily waived 6.7% of the .75% annual fee to limit the advisory fee to .70% of the Fund’s average daily net assets.
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.
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. For the six months ended March 31, 2009, 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 the Fund’s average daily net assets, .95% on the next $300 million, .92% on the next $400 million, .90% on the next $500 million and .88% on average daily net assets over $1.5 billion. For the six months ended March 31, 2009, FIMCO has voluntarily 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, 2009, total advisory fees accrued to FIMCO by the Income Funds and Equity Funds were $3,698,087 and $9,037,162, respectively, of which $856,413 and $218,657, respectively, was voluntarily waived by FIMCO as noted above.
108 |
For the six months ended March 31, 2009, FIC, as underwriter, received from the Income Funds and Equity Funds $2,472,184 and $10,086,692, respectively, in commissions in connection with the sale of shares of the Funds, after allowing $36,970 and $7,089, respectively, to other dealers. For the six months ended March 31, 2009, shareholder servicing costs for the Income Funds and Equity Funds included $1,285,853 and $3,678,337, respectively, in transfer agent fees accrued to ADM and $194,170 and $973,204, 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, 2009, total distribution plan fees accrued to FIC by the Income Funds and Equity Funds amounted to $1,506,180 and $3,861,876, respectively.
Wellington Management Company, LLP (“Wellington”) serves as investment sub-adviser to Global Fund, Smith Asset Management Group, L.P. serves as investment subadviser 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. Effective April 24, 2009, Muzinich & Co., Inc., serves as investment subadviser to Fund For Income. The subadvisers are paid by FIMCO and not by the Funds.
4. Restricted Securities—Certain restricted securities are exempt from the registration requirements under Rule 144A of the Securities Act of 1933 and may only be sold to qualified institutional investors. Unless otherwise noted, these 144A securities are deemed to be liquid. At March 31, 2009, Cash Management Fund held one 144A security with a value of $3,501,205 representing 1.6% of the Fund’s net assets, Investment Grade Fund held 12 144A securities with an aggregate value of $37,731,714 representing 13.6% of the Fund’s net assets, Fund For Income held 22 144A securities with an aggregate value of $35,965,648 representing 9.9% of the Fund’s net assets, Total Return Fund held nine 144A securities with an aggregate value of $6,909,406 representing 2.6% 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. Unless otherwise noted, these section 4(2) securities are deemed to be liquid. At March 31, 2009, Cash Management Fund held ten Section 4(2) securities with an aggregate value of
109 |
Notes to Financial Statements (continued)
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
March 31, 2009
$58,080,447 representing 26.3% 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 securities whether rated or unrated may be considered speculative and subject to greater market fluctuations and risks of loss of income and principal than lower-yielding, higher-rated, fixed-income securities. The risk of loss due to default by the issuer may be significantly greater for holders of high-yielding securities, because such securities are generally unsecured and are often subordinated to other creditors of the issuer.
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 has the following forward currency contracts outstanding at March 31, 2009:
Contracts to Buy | Unrealized | ||||||||||||
Foreign Currency | In Exchange for | Settlement Date | Loss | ||||||||||
41,579,718 | Japanese Yen | US | $ 426,424 | 4/1/09 | US | $ (5,448 | ) | ||||||
16,463,024 | Japanese Yen | 169,757 | 4/2/09 | (3,076 | ) | ||||||||
$ 596,181 | $ (8,524 | ) | |||||||||||
Contracts to Sell | Unrealized | ||||||||||||
Foreign Currency | In Exchange for | Settlement Date | Loss | ||||||||||
660,766 | British Pound | US | $ 938,546 | 4/2/09 | US | $ (8,559 | ) | ||||||
Net Unrealized Loss on Forward Currency Contracts | $ (17,083 | ) |
110 |
The International Fund has the following forward currency contracts outstanding at March 31, 2009:
Contracts to Buy | Unrealized | ||||||||||||
Foreign Currency | In Exchange for | Settlement Date | Gain | ||||||||||
58,527 | Euro | US | $ 79,360 | 3/31/09 | US | $ 290 | |||||||
293,809 | Brazilian Real | 131,300 | 3/31/09 | 1,439 | |||||||||
104,774 | Brazilian Real | 45,501 | 4/2/09 | 118 | |||||||||
2,805,600 | Japanese Yen | 28,949 | 4/3/09 | 544 | |||||||||
$ 285,110 | $ 2,391 | ||||||||||||
Contracts to Sell | Unrealized | ||||||||||||
Foreign Currency | In Exchange for | Settlement Date | (Loss) | ||||||||||
36,278 | Hong Kong Dollar | US $ 4,681 | 3/30/09 | US | $ — | ||||||||
35,963 | Hong Kong Dollar | 4,640 | 3/31/09 | — | |||||||||
462,448 | Canadian Dollar | 373,192 | 4/1/09 | (5,606 | ) | ||||||||
7,184,513 | Japanese Yen | 73,293 | 4/1/09 | (553 | ) | ||||||||
151,290 | Hong Kong Dollar | 19,521 | 4/1/09 | — | |||||||||
$ 475,327 | $ (6,159 | ) | |||||||||||
Net Unrealized Loss on Forward Currency Contracts | $ (3,768 | ) |
The Global Fund had no foreign exchange contracts open at March 31, 2009.
The International Fund had the following foreign exchange contracts open at March 31, 2009:
Contracts to Buy | Unrealized | ||||||||||||
Foreign Currency | In Exchange for | Settlement Date | Gain (Loss) | ||||||||||
7,921,000 | British Pound | US $ 11,734,985 | 4/17/09 | US $ (381,479 | ) | ||||||||
5,190,000 | Euro | 6,516,336 | 4/17/09 | 374,447 | |||||||||
3,013,000 | Australian Dollar | 1,885,909 | 4/17/09 | 207,528 | |||||||||
4,205,000 | Swiss Franc | 3,463,571 | 4/23/09 | 234,596 | |||||||||
7,843,000 | British Pound | 11,895,438 | 5/29/09 | (653,733 | ) | ||||||||
7,564,000 | Euro | 9,803,776 | 5/29/09 | 238,976 | |||||||||
5,847,000 | Swiss Franc | 4,923,002 | 5/29/09 | 219,252 | |||||||||
3,562,000 | Australian Dollar | 2,335,425 | 5/29/09 | 139,458 | |||||||||
8,095,000 | Euro | 10,902,459 | 6/17/09 | (154,697 | ) | ||||||||
5,245,000 | Australian Dollar | 3,500,290 | 6/17/09 | 143,943 | |||||||||
3,061,000 | British Pound | 4,440,602 | 7/20/09 | (53,141 | ) | ||||||||
6,744,000 | Swiss Franc | 5,927,697 | 7/28/09 | 3,441 |
111 |
Notes to Financial Statements (continued)
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
March 31, 2009
Contracts to Buy | Unrealized | ||||||||||||
Foreign Currency (continued) | In Exchange for | Settlement Date | Gain (Loss) | ||||||||||
626,619,000 | Korean Wan | US | $ 474,896 | 8/19/09 | US | $ (21,891 | ) | ||||||
104,244,000 | Indian Rupee | 2,003,536 | 8/20/09 | 51,140 | |||||||||
24,654,000 | Indian Rupee | 472,299 | 9/2/09 | 13,638 | |||||||||
$ 80,280,221 | $ 361,478 | ||||||||||||
Contracts to Sell | Unrealized | ||||||||||||
Foreign Currency | In Exchange for | Settlement Date | Gain (Loss) | ||||||||||
7,921,000 | British Pound | US | $ 13,710,126 | 4/17/09 | US | $ 2,356,621 | |||||||
5,190,000 | Euro | 7,044,257 | 4/17/09 | 153,474 | |||||||||
3,013,000 | Australian Dollar | 2,018,766 | 4/17/09 | (74,671 | ) | ||||||||
4,205,000 | Swiss Franc | 3,651,759 | 4/23/09 | (46,408 | ) | ||||||||
7,843,000 | British Pound | 11,986,290 | 5/29/09 | 744,586 | |||||||||
7,564,000 | Euro | 9,767,925 | 5/29/09 | (274,827 | ) | ||||||||
5,847,000 | Swiss Franc | 4,955,308 | 5/29/09 | (186,946 | ) | ||||||||
3,562,000 | Australian Dollar | 2,277,578 | 5/29/09 | (197,305 | ) | ||||||||
8,095,000 | Euro | 10,437,603 | 6/17/09 | (310,160 | ) | ||||||||
5,245,000 | Australian Dollar | 3,384,438 | 6/17/09 | (259,796 | ) | ||||||||
10,032,000 | British Pound | 14,145,628 | 7/20/09 | (233,663 | ) | ||||||||
6,744,000 | Swiss Franc | 5,822,657 | 7/28/09 | (108,481 | ) | ||||||||
1,034,052,000 | Korean Wan | 719,240 | 8/19/09 | (28,312 | ) | ||||||||
221,517,000 | Indian Rupee | 4,350,397 | 8/20/09 | (15,760 | ) | ||||||||
48,109,000 | Indian Rupee | 921,434 | 9/2/09 | (26,807 | ) | ||||||||
$ 95,193,406 | $ 1,491,545 | ||||||||||||
Net Unrealized Gain on Foreign Exchange Contracts | $ 1,853,023 |
7. Capital—The Trusts are authorized to issue an unlimited number of shares of beneficial interest without par value. The Trusts consist of the Funds listed on the cover page, each of which is a separate and distinct series of the Trusts. Each Fund has designated 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 terms 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
112 |
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 distribution plan fees as described in Note 3. Class B shares are sold without an initial sales charge, but are generally subject to a contingent deferred sales charge which declines in steps from 4% to 0% over a six-year period. Class B shares automatically convert into Class A shares after eight years. Realized and unrealized gains or losses, investment income and expe nses (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. New Accounting Pronouncements—In March 2008, Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”) was issued and is effective for fiscal years beginning after November 15, 2008. SFAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operation and financial position. Management is currently evaluating the implications of SFAS 161. The impact on the Fund’s financial statement disclosures, if any, is currently being assessed.
9. U.S. Treasury’s Temporary Guarantee Program for Money Market Funds—The Board approved the Cash Management Fund’s participation in the U.S. Department of the Treasury’s Temporary Guarantee Program for Money Market Funds (the “Program”) through December 18, 2008, which has subsequently been extended twice through April 30, 2009 and September 18, 2009, respectively. The Program is designed to protect shareholders of the Cash Management Fund as of September 18, 2008, against the risk of loss in the event that the Cash Management Fund net asset value falls below $0.995. The fee paid to the U.S. Treasury to participate in the initial three-month stage of the Program, which expired on December 18, 2008, was 0.01% of the net asset value of the Cash Management Fund as of September 18, 2008. The fee paid to participate in each extension was 0.015% of the net assets value of the Ca sh Management Fund on September 18, 2008. The fees were borne by the Cash Management Fund without regard to any expenses limitation currently in effect for the Cash Management Fund. Additional information about the Program is available at www.ustreas.gov.
113 |
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 | |||||||||||||||||||||||||||||||||
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 | 1.00 | .027 | — | .027 | .027 | — | .027 | 1.00 | 2.69 | 234 | .80 | .80 | 2.63 | .92 | 2.51 | — | |||||||||||||||||
2009(b) | 1.00 | .005 | — | .005 | .005 | — | .005 | 1.00 | .46 | 216 | .78 | † | .78 | † | .94 | † | 1.01 | † | .71 | † | — | ||||||||||||
Class B | |||||||||||||||||||||||||||||||||
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 | 1.00 | .019 | — | .019 | .019 | — | .019 | 1.00 | 1.92 | 4 | 1.55 | 1.55 | 1.88 | 1.67 | 1.76 | — | |||||||||||||||||
2009(b) | 1.00 | .001 | — | .001 | .001 | — | .001 | 1.00 | .14 | 5 | 1.42 | † | 1.42 | † | .26 | † | 1.78 | † | (.10 | )† | — | ||||||||||||
GOVERNMENT FUND | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
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 | 10.64 | .49 | .11 | .60 | .48 | — | .48 | 10.76 | 5.73 | 228 | 1.10 | 1.10 | 4.29 | 1.24 | 4.15 | 37 | |||||||||||||||||
2009(b) | 10.76 | .23 | .39 | .62 | .24 | — | .24 | 11.14 | 5.84 | 268 | 1.10 | † | 1.10 | † | 4.17 | † | 1.29 | † | 3.98 | † | 21 | ||||||||||||
Class B | |||||||||||||||||||||||||||||||||
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 | 10.64 | .41 | .12 | .53 | .41 | — | .41 | 10.76 | 4.99 | 12 | 1.80 | 1.80 | 3.59 | 1.94 | 3.45 | 37 | |||||||||||||||||
2009(b) | 10.76 | .19 | .39 | .58 | .20 | — | .20 | 11.14 | 5.47 | 13 | 1.80 | † | 1.80 | † | 3.47 | † | 1.99 | † | 3.28 | † | 21 |
114 | 115 |
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 | |||||||||||||||||||||||||||||||||
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 | 9.42 | .48 | (1.20 | ) | (.72 | ) | .47 | — | .47 | 8.23 | (8.12 | ) | 268 | 1.10 | 1.10 | 4.80 | 1.23 | 4.67 | 127 | ||||||||||||||
2009(b) | 8.23 | .21 | (.30 | ) | (.09 | ) | .24 | — | .24 | 7.90 | (1.07 | ) | 262 | 1.10 | † | 1.10 | † | 5.39 | † | 1.30 | † | 5.19 | † | 38 | |||||||||
Class B | |||||||||||||||||||||||||||||||||
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 | 9.41 | .42 | (1.21 | ) | (.79 | ) | .40 | — | .40 | 8.22 | (8.78 | ) | 17 | 1.80 | 1.80 | 4.10 | 1.93 | 3.97 | 127 | ||||||||||||||
2009(b) | 8.22 | .19 | (.31 | ) | (.12 | ) | .20 | — | .20 | 7.90 | (1.41 | ) | 15 | 1.80 | † | 1.80 | † | 4.71 | † | 2.00 | † | 4.51 | † | 38 | |||||||||
INCOME FUND | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
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 | 2.99 | .21 | (.54 | ) | (.33 | ) | .21 | — | .21 | 2.45 | (11.58 | ) | 460 | 1.29 | 1.29 | 7.40 | 1.30 | 7.39 | 17 | ||||||||||||||
2009(b) | 2.45 | .10 | (.52 | ) | (.42 | ) | .11 | — | .11 | 1.92 | (17.31 | ) | 352 | 1.42 | † | 1.42 | † | 10.53 | † | 1.46 | † | 10.49 | † | 6 | |||||||||
Class B | |||||||||||||||||||||||||||||||||
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 | 2.99 | .19 | (.54 | ) | (.35 | ) | .19 | — | .19 | 2.45 | (12.25 | ) | 15 | 1.99 | 1.99 | 6.70 | 2.00 | 6.69 | 17 | ||||||||||||||
2009(b) | 2.45 | .10 | (.54 | ) | (.44 | ) | .09 | — | .09 | 1.92 | (17.77 | ) | 11 | 2.12 | † | 2.12 | † | 9.82 | † | 2.16 | † | 9.78 | † | 6 |
* | Calculated without sales charges. |
** | Net of expenses waived or assumed by the investment adviser (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 1H). | |
(b) | For the period October 1, 2008 to March 31, 2009. |
116 | See notes to financial statements | 117 |
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 | |||||||||||||||||||||||||||||||||
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 | 15.86 | .36 | (2.31 | ) | (1.95 | ) | .37 | .30 | .67 | 13.24 | (12.66 | ) | 304 | 1.34 | 1.34 | 2.32 | N/A | N/A | 59 | ||||||||||||||
2009 | (b) | 13.24 | .13 | (2.24 | ) | (2.11 | ) | .20 | — | .20 | 10.93 | (16.02 | ) | 250 | 1.46 | † | 1.46 | † | 2.69 | † | N/A | N/A | 30 | ||||||||||
Class B | |||||||||||||||||||||||||||||||||
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 | 15.63 | .26 | (2.29 | ) | (2.03 | ) | .27 | .30 | .57 | 13.03 | (13.35 | ) | 25 | 2.04 | 2.04 | 1.62 | N/A | N/A | 59 | ||||||||||||||
2009 | (b) | 13.03 | .09 | (2.20 | ) | (2.11 | ) | .16 | — | .16 | 10.76 | (16.27 | ) | 19 | 2.16 | † | 2.16 | † | 1.99 | † | N/A | N/A | 30 | ||||||||||
VALUE FUND | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
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 | 8.14 | .12 | (1.49 | ) | (1.37 | ) | .12 | — | .12 | 6.65 | (16.91 | ) | 334 | 1.35 | 1.35 | 1.62 | N/A | N/A | 17 | ||||||||||||||
2009 | (b) | 6.65 | .07 | (1.95 | ) | (1.88 | ) | .06 | — | .06 | 4.71 | (28.35 | ) | 235 | 1.51 | † | 1.51 | † | 2.60 | † | N/A | N/A | 10 | ||||||||||
Class B | |||||||||||||||||||||||||||||||||
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 | 8.01 | .07 | (1.46 | ) | (1.39 | ) | .07 | — | .07 | 6.55 | (17.42 | ) | 17 | 2.05 | 2.05 | .92 | N/A | N/A | 17 | ||||||||||||||
2009 | (b) | 6.55 | .05 | (1.92 | ) | (1.87 | ) | .04 | — | .04 | 4.64 | (28.58 | ) | 11 | 2.21 | † | 2.21 | † | 1.90 | † | N/A | N/A | 10 | ||||||||||
118 | 119 |
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 | ||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
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 | 25.64 | .21 | (5.18 | ) | (4.97 | ) | .19 | — | .19 | 20.48 | (19.43 | ) | 396 | 1.40 | 1.41 | .86 | N/A | N/A | 8 | ||||||||||||||
2009 | (b) | 20.48 | .13 | (5.97 | ) | (5.84 | ) | .11 | — | .11 | 14.53 | (28.53 | ) | 277 | 1.60 | † | 1.60 | † | 1.59 | † | N/A | N/A | 5 | ||||||||||
Class B | |||||||||||||||||||||||||||||||||
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 | 23.88 | .03 | (4.80 | ) | (4.77 | ) | .04 | — | .04 | 19.07 | (20.00 | ) | 27 | 2.10 | 2.11 | .16 | N/A | N/A | 8 | ||||||||||||||
2009 | (b) | 19.07 | .06 | (5.55 | ) | (5.49 | ) | .06 | — | .06 | 13.52 | (28.80 | ) | 17 | 2.30 | † | 2.30 | † | .89 | † | N/A | N/A | 5 | ||||||||||
GROWTH & INCOME FUND | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
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 | 16.86 | .14 | (3.66 | ) | (3.52 | ) | .11 | .23 | .34 | 13.00 | (21.23 | ) | 623 | 1.35 | 1.35 | .94 | N/A | N/A | 24 | ||||||||||||||
2009 | (b) | 13.00 | .06 | (3.99 | ) | (3.93 | ) | .12 | .02 | .14 | 8.93 | (30.35 | ) | 425 | 1.55 | † | 1.55 | † | 1.22 | † | N/A | N/A | 15 | ||||||||||
Class B | |||||||||||||||||||||||||||||||||
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 | 15.99 | .03 | (3.47 | ) | (3.44 | ) | .02 | .23 | .25 | 12.30 | (21.82 | ) | 41 | 2.05 | 2.05 | .24 | N/A | N/A | 24 | ||||||||||||||
2009 | (b) | 12.30 | .02 | (3.77 | ) | (3.75 | ) | .10 | .02 | .12 | 8.43 | (30.57 | ) | 25 | 2.25 | † | 2.25 | † | .52 | † | N/A | N/A | 15 | ||||||||||
120 | 121 |
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 | |||||||||||||||||||||||||||||||||
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 | 8.82 | .03 | (1.97 | ) | (1.94 | ) | .01 | 1.12 | 1.13 | 5.75 | (25.44 | ) | 249 | 1.70 | 1.70 | .39 | 1.73 | .36 | 133 | ||||||||||||||
2009 | (b) | 5.75 | — | (1.65 | ) | (1.65 | ) | .04 | — | .04 | 4.06 | (28.77 | ) | 174 | 1.98 | † | 1.98 | † | .22 | † | 2.01 | † | .19 | † | 75 | ||||||||
Class B | |||||||||||||||||||||||||||||||||
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 | 7.98 | (.02 | ) | (1.75 | ) | (1.77 | ) | — | 1.12 | 1.12 | 5.09 | (25.91 | ) | 9 | 2.40 | 2.40 | (.31 | ) | 2.43 | (.34 | ) | 133 | |||||||||||
2009 | (b) | 5.09 | (.02 | ) | (1.46 | ) | (1.48 | ) | .03 | — | .03 | 3.58 | (29.09 | ) | 6 | 2.68 | † | 2.68 | † | (.48 | )† | 2.71 | † | (.51 | )† | 75 | |||||||
SELECT GROWTH FUND†† | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
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 | 10.21 | (.04 | ) | (2.06 | ) | (2.10 | ) | — | 1.42 | 1.42 | 6.69 | (23.84 | ) | 207 | 1.46 | 1.47 | (.52 | ) | N/A | N/A | 99 | ||||||||||||
2009 | (b) | 6.69 | (.01 | ) | (2.10 | ) | (2.11 | ) | — | — | — | 4.58 | (31.54 | ) | 145 | 1.69 | † | 1.69 | † | (.53 | )† | N/A | N/A | 68 | |||||||||
Class B | |||||||||||||||||||||||||||||||||
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 | 9.70 | (.09 | ) | (1.94 | ) | (2.03 | ) | — | 1.42 | 1.42 | 6.25 | (24.43 | ) | 18 | 2.16 | 2.17 | (1.22 | ) | N/A | N/A | 99 | ||||||||||||
2009 | (b) | 6.25 | (.09 | ) | (1.90 | ) | (1.99 | ) | — | — | — | 4.26 | (31.84 | ) | 10 | 2.39 | † | 2.39 | † | (1.23 | )† | N/A | N/A | 68 | |||||||||
122 | 123 |
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 | |||||||||||||||||||||||||||||||||
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 | 31.32 | — | (5.53 | ) | (5.53 | ) | .14 | 2.66 | 2.80 | 22.99 | (19.40 | ) | 377 | 1.39 | 1.40 | (.01 | ) | N/A | N/A | 40 | |||||||||||||
2009 | (b) | 22.99 | .06 | (7.54 | ) | (7.48 | ) | — | .63 | .63 | 14.88 | (32.80 | ) | 251 | 1.64 | † | 1.65 | † | .31 | † | N/A | N/A | 17 | ||||||||||
Class B | |||||||||||||||||||||||||||||||||
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 | 28.31 | (.21 | ) | (4.89 | ) | (5.10 | ) | .14 | 2.66 | 2.80 | 20.41 | (19.99 | ) | 32 | 2.09 | 2.10 | (.71 | ) | N/A | N/A | 40 | ||||||||||||
2009 | (b) | 20.41 | (.39 | ) | (6.29 | ) | (6.68 | ) | — | .63 | .63 | 13.10 | (33.03 | ) | 19 | 2.34 | † | 2.35 | † | (.39 | )† | N/A | N/A | 17 | |||||||||
SPECIAL SITUATIONS FUND | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
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 | 24.27 | .03 | (2.93 | ) | (2.90 | ) | — | 1.22 | 1.22 | 20.15 | (12.67 | ) | 258 | 1.49 | 1.50 | .14 | 1.61 | .02 | 52 | ||||||||||||||
2009 | (b) | 20.15 | .03 | (5.90 | ) | (5.87 | ) | .02 | .53 | .55 | 13.73 | (29.32 | ) | 180 | 1.71 | † | 1.71 | † | .42 | † | 1.91 | † | .22 | † | 25 | ||||||||
Class B | |||||||||||||||||||||||||||||||||
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 | 21.73 | (.13 | ) | (2.57 | ) | (2.70 | ) | — | 1.22 | 1.22 | 17.81 | (13.26 | ) | 12 | 2.19 | 2.20 | (.56 | ) | 2.31 | (.68 | ) | 52 | |||||||||||
2009 | (b) | 17.81 | (.03 | ) | (5.19 | ) | (5.22 | ) | — | .53 | .53 | 12.06 | (29.54 | ) | 7 | 2.41 | † | 2.41 | † | (.28 | )† | 2.61 | † | (.48 | )† | 25 | |||||||
124 | 125 |
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 | 13.18 | .07 | (3.45 | ) | (3.38 | ) | — | .32 | .32 | 9.48 | (26.37 | ) | 105 | 1.95 | 1.95 | .20 | 1.94 | .20 | 122 | ||||||||||||||
2009 | (b) | 9.48 | .02 | (2.74 | ) | (2.72 | ) | .13 | — | .13 | 6.63 | (28.87 | ) | 76 | 2.22 | † | 2.22 | † | .49 | † | N/A | N/A | 45 | ||||||||||
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 | 13.07 | (.02 | ) | (3.40 | ) | (3.42 | ) | — | .32 | .32 | 9.33 | (26.91 | ) | 4 | 2.65 | 2.65 | (.50 | ) | 2.64 | (.50 | ) | 122 | |||||||||||
2009 | (b) | 9.33 | (.02 | ) | (2.67 | ) | (2.69 | ) | .12 | — | .12 | 6.52 | (29.03 | ) | 3 | 2.92 | † | 2.92 | † | (.21 | )† | N/A | N/A | 45 | |||||||||
* | 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 1H). | |
(b) | For the period October 1, 2008 to March 31, 2009. |
(c) | For the period June 27, 2006 (commencement of operations) to September 30, 2006. |
126 | See notes to financial statements | 127 |
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, 2009, 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 financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate 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 confirmation of securities owned as of March 3 1, 2009, 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.
128 |
In our opinion, the financial 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, 2009, 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 28, 2009
129 |
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 |
130 |
Shareholder Information | |
——————————————————— | |
Investment Adviser | |
First Investors Management | Underwriter |
Company, Inc. | First Investors Corporation |
110 Wall Street | 110 Wall Street |
New York, NY 10005 | New York, NY 10005 |
Subadviser | Custodian |
(Fund For Income) | The Bank of New York Mellon |
Muzinich & Co., Inc. | One Wall Street |
450 Park Avenue | New York, NY 10286 |
New York, NY 10022 | |
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, Suite 1150 | |
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 |
K&L Gates LLP | |
Subadviser | 1601 K Street, N.W. |
(International Fund) | Washington, DC 20006 |
Vontobel Asset Management, Inc. | |
1540 Broadway, 38th Floor | |
New York, NY 10036 |
131 |
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 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.
132 |
NOTES |
133 |
![](https://capedge.com/proxy/N-CSRS/0000886048-09-000006/iefbackcoverx7x1.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 8, 2009 |
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 8, 2009 |