UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
WASHINGTON, D.C. 20549 |
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FORM N-CSR |
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT |
INVESTMENT COMPANIES |
INVESTMENT COMPANY ACT FILE NUMBER 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
(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, 2010
DATE OF REPORTING PERIOD: MARCH 31, 2010
Item 1. | Reports to Stockholders |
The semi-annual report to shareholders follows |
![](https://capedge.com/proxy/N-CSRS/0000886048-10-000006/equityincomex1x1.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 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. 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:
During the reporting period, riskier investments led the way, as extremely low interest rates helped guide investors away from money market funds and toward stocks and corporate bonds.
The U.S. economy grew at a 5.6% pace in the fourth quarter of 2009, and 3.2% in the first quarter of this year. However, employers remained cautious about hiring, and the unemployment rate continued to climb in the fourth quarter of 2009, hitting 10.2% in October, its highest level in 26 years. By the end of the first quarter of 2010, however, job losses had leveled off somewhat, as the unemployment rate stood at a still high 9.7%. Interest rates remained near historically low levels.
Bond Markets
The overall bond market posted positive returns as reflected by the Bank of America Merrill Lynch Broad Market Index, which was up 2.0% for the two quarters. But returns by sector varied, from –0.2% in the Treasury sector to 11.2% in the high yield (i.e., below investment grade) bond market. Benchmark U.S. Treasury yields moved higher for the period. Specifically, the two-year U.S. Treasury note yield moved from 0.95% to 1.02%, and the ten-year note yield moved from 3.31% to 3.83%.
Money continued to pour out of the money markets, where interest rates remain near zero, as investors searched for higher yields. Investment grade corporate bonds rose 4.0% as the positive impact of much tighter spreads offset the negative impact of higher benchmark interest rates. Spreads tightened due to the improved economic outlook and generally positive corporate credit metrics. Mortgage-backed bonds returned 2.2% as spreads tightened as a result of the Federal Reserve’s (the “Fed’s”) continued support of the mortgage-backed market. The Fed’s purchases of mortgage-backed bonds, totaling $1.25 trillion, concluded at the end of March. High yield bonds turned in the strongest performance, returning 11.2%, reflecting investors’ appetites for yield.
Equity Markets
In the equity markets, the reporting period was marked by a continuation of the rebound that began in March 2009. Returns were strong in the domestic markets, with companies reporting higher-than-expected earnings. The S&P 500 Index, commonly cited as a proxy for U.S. stock market performance, returned 11.8%; mid-cap stocks, as measured by the S&P MidCap 400 Index, rose 15.2%; and small-cap stocks, as measured by the Russell 2000 Index, returned 13.1% for the six-month period.
1 |
Market Overview (continued)
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
On a worldwide scale, market appreciation slowed considerably, as the MSCI EAFE Index, an index that measures performance in developed markets, excluding the U.S., was up just 2.0% in U.S. dollars. This weak performance was the result of the tumult in Europe and of China beginning to unwind its stimulus programs. However, the Index was still up over 50% in the 12-month period ended March 31, 2010.
Looking Ahead
It appears that the recovery is well underway. However, investors are wary the equity markets may take another dip once the Fed withdraws its extensive support, and begins tightening credit once again. At the end of the first quarter, interest rates remained at low levels and spreads in risky markets were much narrower than a year ago. Consequently, bond investors face the likelihood of rising interest rates. Nonetheless, as long as money market rates remain near zero, investors seeking yield should provide support for the markets.
Thank you for placing your trust in First Investors. As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
![](https://capedge.com/proxy/N-CSRS/0000886048-10-000006/equityincomex4x1.jpg)
Edwin D. Miska
Director of Equities
First Investors Management Company, Inc.
![](https://capedge.com/proxy/N-CSRS/0000886048-10-000006/equityincomex4x2.jpg)
Clark D. Wagner
Director of Fixed Income
First Investors Management Company, Inc.
April 30, 2010
2 |
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 risk s associated with 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, 2009, and held for the entire six-month period ended March 31, 2010. 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 | |
(10/1/09) | (3/31/10) | (10/1/09–3/31/10)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $1,000.00 | $1.70 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,023.23 | $1.72 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $1,000.00 | $1.70 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,023.23 | $1.72 |
* | Expenses are equal to the annualized expense ratio of .34% for Class A shares and .34% 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 | ||
or assumed. |
Portfolio Composition
BY SECTOR
![](https://capedge.com/proxy/N-CSRS/0000886048-10-000006/equityincomex7x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2010, and are based on the total value of investments.
5 |
Portfolio of Investments
CASH MANAGEMENT FUND
March 31, 2010
Principal | Interest | ||||||||||
Amount | Security | Rate | * | Value | |||||||
U.S. GOVERNMENT AGENCY | |||||||||||
OBLIGATIONS—33.8% | |||||||||||
Fannie Mae: | |||||||||||
$ 2,900 | M | 5/3/10 | 0.15 | % | $2,899,613 | ||||||
7,000 | M | 5/5/10 | 0.15 | 6,999,008 | |||||||
1,358 | M | 5/12/10 | 0.12 | 1,357,814 | |||||||
8,000 | M | 5/20/10 | 0.17 | 8,023,806 | |||||||
9,000 | M | 6/14/10 | 0.14 | 8,997,410 | |||||||
Federal Home Loan Bank: | |||||||||||
5,000 | M | 6/11/10 | 0.11 | 4,998,915 | |||||||
1,000 | M | 10/13/10 | 0.21 | 1,000,047 | |||||||
5,000 | M | 12/28/10 | 0.50 | 5,003,305 | |||||||
2,500 | M | 4/12/11 | 0.55 | 2,500,000 | |||||||
Freddie Mac: | |||||||||||
2,500 | M | 5/4/10 | 0.17 | 2,499,610 | |||||||
2,000 | M | 6/14/10 | 0.20 | 1,999,198 | |||||||
2,030 | M | 6/22/10 | 0.16 | 2,029,260 | |||||||
3,000 | M | 9/14/10 | 0.23 | 2,996,818 | |||||||
Total Value of U.S. Government Agency Obligations (cost $51,304,804) | 51,304,804 | ||||||||||
CORPORATE NOTES—35.1% | |||||||||||
1,000 | M | Abbott Laboratories, 4/26/10 (a) | 0.15 | 999,896 | |||||||
7,000 | M | Brown-Forman Corp., 5/19/10 (a) | 0.14 | 6,998,693 | |||||||
5,600 | M | Coca-Cola Co., 6/17/10 (a) | 0.20 | 5,597,604 | |||||||
5,700 | M | ConocoPhillips Qatar, 4/7/10 (a) | 0.15 | 5,699,858 | |||||||
3,000 | M | Electricite De France, 4/1/10 (a) | 0.13 | 3,000,000 | |||||||
2,900 | M | General Electric Capital Corp., 2/1/11 | 0.73 | 3,007,701 | |||||||
5,750 | M | Merck & Co., Inc., 9/3/10 (a) | 0.29 | 5,742,820 | |||||||
7,000 | M | Microsoft Corp., 4/14/10 (a) | 0.16 | 6,999,595 | |||||||
4,100 | M | Paccar Financial Corp., 5/12/10 | 0.17 | 4,099,206 | |||||||
4,500 | M | Toyota Motor Credit Corp., 5/10/10 | 0.21 | 4,498,976 | |||||||
3,700 | M | United Technologies Corp., 5/1/10 | 0.63 | 3,711,437 | |||||||
3,000 | M | Walt Disney Co., 4/6/10 (a) | 0.12 | 2,999,950 | |||||||
Total Value of Corporate Notes (cost $53,355,736) | 53,355,736 |
6 |
Principal | Interest | ||||||||||
Amount | Security | Rate | * | Value | |||||||
VARIABLE AND FLOATING | |||||||||||
RATE NOTES—24.5% | |||||||||||
$ 5,000 | M | Federal Farm Credit Bank, 4/9/10 | 0.63 | % | $ 5,000,009 | ||||||
8,000 | M | GlaxoSmithKline Capital, Inc., 5/13/10 | 0.88 | 8,006,761 | |||||||
5,700 | M | Mississippi Business Finance Corp. | |||||||||
(Chevron USA, Inc.), 12/1/30 | 0.34 | 5,700,000 | |||||||||
4,025 | M | Monongallia Health Systems, 7/1/40 (LOC: JP Morgan) | 0.29 | 4,025,000 | |||||||
3,060 | M | University of Oklahoma Hospital Rev. Series “B” | |||||||||
8/15/21 (LOC: Bank of America) | 0.30 | 3,060,000 | |||||||||
Valdez, Alaska Marine Terminal Rev.: | |||||||||||
3,700 | M | BP Pipelines Inc., Project A, 6/1/37 | 0.30 | 3,700,000 | |||||||
5,835 | M | Exxon Pipeline Co., Project B, 12/1/33 | 0.28 | 5,835,000 | |||||||
1,900 | M | Exxon Pipeline Co., Project C, 12/1/33 | 0.32 | 1,900,000 | |||||||
Total Value of Floating Rate Notes (cost $37,226,770) | 37,226,770 | ||||||||||
CERTIFICATES OF DEPOSIT—3.5% | |||||||||||
5,300 | M | Citibank, NA, 9/3/10 (cost $5,301,536) | 0.62 | 5,301,536 | |||||||
U.S. GOVERNMENT FDIC GUARANTEED | |||||||||||
DEBT—2.6% | |||||||||||
3,950 | M | Morgan Stanley, 12/1/10 (cost $4,018,425) | 0.30 | 4,018,425 | |||||||
Total Value of Investments (cost $151,207,271)** | 99.5 | % | 151,207,271 | ||||||||
Other Assets, Less Liabilities | .5 | 790,773 | |||||||||
Net Assets | 100.0 | % | $151,998,044 |
* | The interest rates shown are the effective rates at the time of purchase by the Fund. The interest | |
rates shown on variable and floating rate notes are adjusted periodically; the rates shown are the | ||
rates in effect at March 31, 2010. | ||
** | Aggregate cost for federal income tax purposes is the same. | |
(a) | Security exempt from registration under Section 4(2) of the Securities Act of 1933 (see Note 4). | |
Summary of Abbreviations: | ||
LOC Letters of Credit |
7 |
Portfolio of Investments (continued))
CASH MANAGEMENT FUND
March 31, 2010
Accounting Standards Codification (“ASC”) 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:
Level 1 — | 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 following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2010:
Level 2 | ||||||||||||
Other | Level 3 | |||||||||||
Level 1 | Significant | Significant | ||||||||||
Quoted | Observable | Unobservable | ||||||||||
Prices | Inputs | Inputs | Total | |||||||||
Corporate Notes | $ | — | $ | $ 53,355,736 | $ | — | $ | 53,355,736 | ||||
U.S. Government Agency | ||||||||||||
Obligations | — | 51,304,804 | — | 51,304,804 | ||||||||
Variable and Floating Rate Notes: | ||||||||||||
Municipal Bonds | — | 20,195,000 | — | 20,195,000 | ||||||||
Corporate Notes | — | 12,031,761 | — | 12,031,761 | ||||||||
U.S. Government Agency | ||||||||||||
Obigations | — | 5,000,009 | — | 5,000,009 | ||||||||
Certificates of Deposit | — | 5,301,536 | — | 5,301,536 | ||||||||
U.S. Government FDIC | ||||||||||||
Guaranteed Debt | — | 4,018,425 | — | 4,018,425 | ||||||||
Total Investments in Securities | $ | — | $ | $151,207,271 | $ | — | $ | 151,207,271 |
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 | |
(10/1/09) | (3/31/10) | (10/1/09–3/31/10)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $1,020.72 | $5.69 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,019.30 | $5.69 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $1,017.32 | $9.20 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,015.81 | $9.20 |
* | Expenses are equal to the annualized expense ratio of 1.13% for Class A shares and 1.83% 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/0000886048-10-000006/equityincomex11x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2010, and are based on the total value of investments.
9 |
Portfolio of Investments)
GOVERNMENT FUND
March 31, 2010
Principal | |||||||||||
Amount | Security | Value | |||||||||
MORTGAGE-BACKED SECURITIES—98.3% | |||||||||||
Fannie Mae—17.4% | |||||||||||
$ 11,202 | M | 5%, 7/1/2035 – 12/1/2039 | $ 11,573,713 | ||||||||
29,029 | M | 5.5%, 7/1/2033 – 10/1/2039 | 30,704,376 | ||||||||
11,458 | M | 6%, 11/1/2033 – 7/1/2039 | 12,230,506 | ||||||||
54,508,595 | |||||||||||
Government National Mortgage Association I | |||||||||||
Program—80.9% | |||||||||||
108,766 | M | 5%, 4/15/2033 – 11/15/2039 | 113,485,413 | ||||||||
67,735 | M | 5.5%, 3/15/2033 – 10/15/2039 | 72,025,064 | ||||||||
44,360 | M | 6%, 3/15/2031 – 11/15/2039 | 47,818,796 | ||||||||
13,742 | M | 6.5%, 10/15/2028 – 3/15/2038 | 15,147,699 | ||||||||
3,789 | M | 7%, 1/15/2030 – 4/15/2034 | 4,292,121 | ||||||||
1,004 | M | 7.5%, 7/15/2023 – 6/15/2034 | 1,134,477 | ||||||||
253,903,570 | |||||||||||
Total Value of Mortgage-Backed Certificates (cost $299,392,501) | 308,412,165 | ||||||||||
SHORT-TERM INVESTMENTS—1.1% | |||||||||||
Money Market Fund | |||||||||||
3,490 | M | First Investors Cash Reserve Fund, .22% (cost $3,490,000)* | 3,490,000 | ||||||||
Total Value of Investments (cost $302,882,501) | 99.4 | % | 311,902,165 | ||||||||
Other Assets, Less Liabilities | .6 | 1,784,365 | |||||||||
Net Assets | 100.0 | % | $313,686,530 |
* | 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, 2010 (see Note 2). |
10 |
Accounting Standards Codification (“ASC”) 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:
Level 1 — | 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 following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2010:
Level 2 | ||||||||||||
Other | Level 3 | |||||||||||
Level 1 | Significant | Significant | ||||||||||
Quoted | Observable | Unobservable | ||||||||||
Prices | Inputs | Inputs | Total | |||||||||
Mortgage-Backed Securities | $ | — | $ | 308,412,165 | $ | — | $ | 308,412,165 | ||||
Money Market Fund | 3,490,000 | — | — | 3,490,000 | ||||||||
Total Investments in Securities | $ | 3,490,000 | $ | 308,412,165 | $ | — | $ | 311,902,165 |
See notes to financial statements | 11 |
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 | |
(10/1/09) | (3/31/10) | (10/1/09–3/31/10)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $1,044.11 | $5.76 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,019.30 | $5.69 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $1,039.32 | $9.30 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,015.81 | $9.20 |
* | Expenses are equal to the annualized expense ratio of 1.13% for Class A shares and 1.83% 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/0000886048-10-000006/equityincomex14x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2010, and are based on the total value of investments.
12 |
Portfolio of Investments
INVESTMENT GRADE FUND
March 31, 2010
Principal | |||||||||||
Amount | Security | Value | |||||||||
CORPORATE BONDS—97.5% | |||||||||||
Aerospace/Defense—1.6% | |||||||||||
$ 1,800 | M | BAE Systems Holdings, Inc., 4.95%, 2014 (a) | $ 1,890,392 | ||||||||
4,000 | M | Lockheed Martin Corp., 4.25%, 2019 | 3,875,084 | ||||||||
5,765,476 | |||||||||||
Agriculture—1.3% | |||||||||||
2,725 | M | Cargill, Inc., 6%, 2017 (a) | 2,962,459 | ||||||||
1,900 | M | Potash Corp. of Saskatchewan, Inc., 4.875%, 2020 | 1,906,990 | ||||||||
4,869,449 | |||||||||||
Automotive—1.2% | |||||||||||
4,000 | M | Daimler Chrysler NA, LLC, 6.5%, 2013 | 4,438,156 | ||||||||
Chemicals—1.0% | |||||||||||
3,000 | M | Chevron Phillips Chemicals Co., LLC, 8.25%, 2019 (a) | 3,587,439 | ||||||||
Consumer Durables—1.1% | |||||||||||
2,100 | M | Black & Decker Corp., 5.75%, 2016 | 2,302,226 | ||||||||
1,600 | M | Newell Rubbermaid, Inc., 6.75%, 2012 | 1,726,947 | ||||||||
4,029,173 | |||||||||||
Energy—16.1% | |||||||||||
3,900 | M | Canadian Oil Sands, Ltd., 7.75%, 2019 (a) | 4,595,955 | ||||||||
4,800 | M | DCP Midstream, LLC, 9.75%, 2019 (a) | 6,163,258 | ||||||||
2,400 | M | Enbridge Energy Partners, LP, 7.5%, 2038 | 2,818,723 | ||||||||
1,800 | M | Energy Transfer Partners, LP, 8.5%, 2014 | 2,095,810 | ||||||||
850 | M | Kinder Morgan Finance Co., 5.35%, 2011 | 869,125 | ||||||||
3,800 | M | Marathon Oil Corp., 7.5%, 2019 | 4,470,932 | ||||||||
3,924 | M | Maritime & Northeast Pipeline, LLC, 7.5%, 2014 (a) | 4,295,950 | ||||||||
2,800 | M | Nabors Industries, Inc., 6.15%, 2018 | 2,987,522 | ||||||||
Nexen, Inc.: | |||||||||||
2,000 | M | 5.05%, 2013 | 2,151,488 | ||||||||
2,250 | M | 7.875%, 2032 | 2,611,193 | ||||||||
1,800 | M | 6.4%, 2037 | 1,820,288 | ||||||||
2,000 | M | Northern Border Partners, LP, 7.1%, 2011 | 2,088,900 | ||||||||
3,200 | M | Pacific Energy Partners, LP, 6.25%, 2015 | 3,302,394 | ||||||||
900 | M | Plains All American Pipeline, LP, 8.75%, 2019 | 1,099,767 |
13 |
Portfolio of Investments (continued)
INVESTMENT GRADE FUND
March 31, 2010
Principal | |||||||||||
Amount | Security | Value | |||||||||
Energy (continued) | |||||||||||
$ 5,800 | M | Spectra Energy Capital, LLC, 6.2%, 2018 | $ 6,264,493 | ||||||||
4,400 | M | Suncor Energy, Inc., 6.85%, 2039 | 4,756,668 | ||||||||
2,575 | M | Trans-Canada Pipelines, Ltd., 7.625%, 2039 | 3,148,061 | ||||||||
Valero Energy Corp.: | |||||||||||
2,700 | M | 9.375%, 2019 | 3,219,507 | ||||||||
900 | M | 10.5%, 2039 | 1,158,977 | ||||||||
59,919,011 | |||||||||||
Financial Services—12.9% | |||||||||||
5,000 | M | American Express Co., 7%, 2018 | 5,687,770 | ||||||||
1,800 | M | American General Finance Corp., 6.9%, 2017 | 1,578,888 | ||||||||
5,040 | M | Amvescap, PLC, 5.375%, 2013 | 5,224,363 | ||||||||
2,500 | M | Berkshire Hathaway, Inc., 3.2%, 2015 | 2,524,155 | ||||||||
4,000 | M | BlackRock, Inc., 5%, 2019 | 4,011,724 | ||||||||
500 | M | Caterpillar Financial Services Corp., 5.85%, 2017 | 542,813 | ||||||||
3,260 | M | CoBank, ACB, 7.875%, 2018 (a) | 3,525,768 | ||||||||
1,800 | M | Compass Bank, 6.4%, 2017 | 1,799,660 | ||||||||
ERAC USA Finance Co.: | |||||||||||
1,170 | M | 8%, 2011 (a) | 1,227,696 | ||||||||
2,200 | M | 6.375%, 2017 (a) | 2,383,874 | ||||||||
2,363 | M | Ford Motor Credit Co., 9.75%, 2010 | 2,419,920 | ||||||||
3,000 | M | General Electric Capital Corp., 4.375%, 2015 | 3,097,068 | ||||||||
Harley-Davidson Funding Corp.: | |||||||||||
1,800 | M | 5.75%, 2014 (a) | 1,836,466 | ||||||||
3,000 | M | 6.8%, 2018 (a) | 2,999,970 | ||||||||
4,000 | M | Protective Life Corp., 7.375%, 2019 | 4,256,148 | ||||||||
4,600 | M | Prudential Financial, Inc., 4.75%, 2015 | 4,740,286 | ||||||||
47,856,569 | |||||||||||
Financials—14.7% | |||||||||||
Bank of America Corp.: | |||||||||||
900 | M | 4.5%, 2015 | 908,512 | ||||||||
1,900 | M | 5.65%, 2018 | 1,925,264 | ||||||||
5,400 | M | Barclays Bank, PLC, 5.125%, 2020 | 5,334,871 | ||||||||
1,500 | M | Bear Stearns Cos., Inc., 7.25%, 2018 | 1,736,180 | ||||||||
Citigroup, Inc.: | |||||||||||
2,700 | M | 6.375%, 2014 | 2,887,159 | ||||||||
2,400 | M | 6.125%, 2017 | 2,472,550 |
14 |
Principal | |||||||||||
Amount | Security | Value | |||||||||
Financials (continued) | |||||||||||
Goldman Sachs Group, Inc.: | |||||||||||
$ 2,500 | M | 6.15%, 2018 | $ 2,649,380 | ||||||||
1,600 | M | 6.45%, 2036 | 1,551,866 | ||||||||
2,750 | M | 6.75%, 2037 | 2,755,093 | ||||||||
2,420 | M | Hibernia Corp., 5.35%, 2014 | 2,392,293 | ||||||||
3,000 | M | JPMorgan Chase & Co., 3.7%, 2015 | 3,021,768 | ||||||||
6,700 | M | Merrill Lynch & Co., Inc., 5.45%, 2013 | 7,093,317 | ||||||||
Morgan Stanley: | |||||||||||
5,800 | M | 5.95%, 2017 | 5,967,933 | ||||||||
2,600 | M | 6.625%, 2018 | 2,777,419 | ||||||||
2,900 | M | Royal Bank of Scotland Group, PLC, 5%, 2014 | 2,778,046 | ||||||||
3,000 | M | SunTrust Banks, Inc., 6%, 2017 | 3,043,239 | ||||||||
2,300 | M | UBS AG, 5.875%, 2016 | 2,370,536 | ||||||||
3,000 | M | Wells Fargo & Co., 3.75%, 2014 | 3,039,456 | ||||||||
54,704,882 | |||||||||||
Food/Beverage/Tobacco—7.0% | |||||||||||
4,600 | M | Altria Group, Inc., 10.2%, 2039 | 6,184,700 | ||||||||
5,000 | M | Anheuser-Busch InBev Worldwide, Inc., 5.375%, 2020 | 5,167,700 | ||||||||
1,100 | M | Bottling Group, LLC, 5.5%, 2016 | 1,210,626 | ||||||||
1,980 | M | Bunge Limited Finance Corp., 5.875%, 2013 | 2,110,553 | ||||||||
1,600 | M | ConAgra Foods, Inc., 5.875%, 2014 | 1,758,200 | ||||||||
4,000 | M | Dr. Pepper Snapple Group, Inc., 6.82%, 2018 | 4,576,864 | ||||||||
4,600 | M | Philip Morris International, Inc., 5.65%, 2018 | 4,960,792 | ||||||||
25,969,435 | |||||||||||
Food/Drug—.5% | |||||||||||
1,875 | M | CVS Caremark Corp., 6.125%, 2039 | 1,869,836 | ||||||||
Forest Products/Container—.7% | |||||||||||
2,200 | M | International Paper Co., 9.375%, 2019 | 2,754,657 | ||||||||
Health Care—4.8% | |||||||||||
5,300 | M | Biogen IDEC, Inc., 6.875%, 2018 | 5,817,466 | ||||||||
2,400 | M | Novartis, 5.125%, 2019 | 2,548,248 | ||||||||
1,000 | M | Pfizer, Inc., 6.2%, 2019 | 1,131,453 | ||||||||
1,000 | M | Roche Holdings, Inc., 6%, 2019 (a) | 1,107,054 |
15 |
Portfolio of Investments (continued)
INVESTMENT GRADE FUND
March 31, 2010
Principal | |||||
Amount | Security | Value | |||
Health Care (continued) | |||||
$ 3,125 | M | St. Jude Medical, Inc., 4.875%, 2019 | $ 3,199,753 | ||
3,000 | M | Watson Pharmaceuticals, Inc., 5%, 2014 | 3,126,675 | ||
900 | M | Wyeth, 5.5%, 2016 | 1,005,224 | ||
17,935,873 | |||||
Information Technology—3.4% | |||||
3,000 | M | Cisco Systems, Inc., 4.45%, 2020 | 2,989,233 | ||
3,000 | M | Dell, Inc., 5.875%, 2019 | 3,252,258 | ||
3,208 | M | Dun & Bradstreet Corp., 6%, 2013 | 3,467,854 | ||
900 | M | Oracle Corp., 5%, 2019 | 943,772 | ||
Pitney Bowes, Inc.: | |||||
900 | M | 5%, 2015 | 963,498 | ||
1,000 | M | 5.25%, 2037 | 1,039,471 | ||
12,656,086 | |||||
Manufacturing—3.0% | |||||
1,750 | M | Briggs & Stratton Corp., 8.875%, 2011 | 1,850,625 | ||
2,700 | M | General Electric Co., 5.25%, 2017 | 2,836,358 | ||
2,100 | M | Ingersoll-Rand Global Holdings Co., 6.875%, 2018 | 2,365,381 | ||
2,300 | M | Johnson Controls, Inc., 5%, 2020 | 2,298,924 | ||
1,725 | M | Tyco Electronics Group SA, 6.55%, 2017 | 1,900,655 | ||
11,251,943 | |||||
Media-Broadcasting—6.4% | |||||
3,950 | M | British Sky Broadcasting Group, PLC, 9.5%, 2018 (a) | 5,088,283 | ||
4,000 | M | Comcast Corp., 5.15%, 2020 | 4,043,724 | ||
Cox Communications, Inc.: | |||||
2,000 | M | 4.625%, 2013 | 2,116,142 | ||
3,100 | M | 8.375%, 2039 (a) | 3,889,276 | ||
Time Warner Cable, Inc.: | |||||
4,000 | M | 6.2%, 2013 | 4,417,236 | ||
3,700 | M | 6.75%, 2018 | 4,140,862 | ||
23,695,523 |
16 |
Principal | |||||
Amount | Security | Value | |||
Media-Diversified—2.4% | |||||
McGraw-Hill Cos., Inc.: | |||||
$ 1,800 | M | 5.9%, 2017 | $ 1,904,418 | ||
2,300 | M | 6.55%, 2037 | 2,471,053 | ||
4,000 | M | News America, Inc., 5.3%, 2014 | 4,387,460 | ||
8,762,931 | |||||
Metals/Mining—4.1% | |||||
4,000 | M | ArcelorMittal, 6.125%, 2018 | 4,205,568 | ||
3,800 | M | Newmont Mining Corp., 5.125%, 2019 | 3,829,781 | ||
2,595 | M | Rio Tinto Finance USA, Ltd., 6.5%, 2018 | 2,925,598 | ||
4,000 | M | Vale Overseas, Ltd., 5.625%, 2019 | 4,150,552 | ||
15,111,499 | |||||
Real Estate Investment Trusts—2.9% | |||||
2,020 | M | Boston Properties, LP, 5.875%, 2019 | 2,100,790 | ||
4,000 | M | ProLogis, 7.625%, 2014 | 4,377,636 | ||
4,000 | M | Simon Property Group, LP, 5.75%, 2015 | 4,236,696 | ||
10,715,122 | |||||
Telecommunications—4.0% | |||||
4,000 | M | AT&T, Inc., 5.8%, 2019 | 4,283,228 | ||
4,000 | M | Deutsche Telekom Intl. Finance BV, 5.875%, 2013 | 4,365,528 | ||
3,300 | M | GTE Corp., 6.84%, 2018 | 3,649,529 | ||
2,400 | M | Verizon Wireless Capital, LLC, 5.55%, 2014 | 2,625,091 | ||
14,923,376 | |||||
Transportation—1.2% | |||||
3,834 | M | GATX Corp., 8.75%, 2014 | 4,401,516 | ||
Utilities—6.2% | |||||
5,000 | M | E. ON International Finance BV, 5.8%, 2018 (a) | 5,415,080 | ||
Electricite de France SA: | |||||
1,900 | M | 6.5%, 2019 (a) | 2,135,674 | ||
2,100 | M | 6.95%, 2039 (a) | 2,418,965 | ||
1,193 | M | Entergy Gulf States, Inc., 5.25%, 2015 | 1,191,690 | ||
4,000 | M | Exelon Generation Co., LLC, 6.2%, 2017 | 4,359,684 |
17 |
Portfolio of Investments (continued)
INVESTMENT GRADE FUND
March 31, 2010
Principal | |||||||
Amount | Security | Value | |||||
Utilities (continued) | |||||||
$ 833 | M | Great River Energy Co., 5.829%, 2017 (a) | $ 920,859 | ||||
3,000 | M | Ohio Power Co., 5.375%, 2021 | 3,068,928 | ||||
2,561 | M | Sempra Energy, 9.8%, 2019 | 3,333,551 | ||||
22,844,431 | |||||||
Waste Management—1.0% | |||||||
3,300 | M | Allied Waste NA, Inc., 7.125%, 2016 | 3,589,087 | ||||
Total Value of Corporate Bonds (cost $336,230,595) | 361,651,470 | ||||||
PASS THROUGH CERTIFICATES—.1% | |||||||
Transportation | |||||||
423 | M | American Airlines, Inc., 7.377%, 2019 (cost $412,699) | 350,896 | ||||
SHORT-TERM INVESTMENTS—1.1% | |||||||
Money Market Fund | |||||||
4,035 | M | First Investors Cash Reserve Fund, .22% (cost $4,035,000) (b) | 4,035,000 | ||||
Total Value of Investments (cost $340,678,294) | 98.7 | % | 366,037,366 | ||||
Other Assets, Less Liabilities | 1.3 | 5,006,148 | |||||
Net Assets | 100.0 | % | $371,043,514 |
(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, 2010 (see Note 2). |
18 |
Accounting Standards Codification (“ASC”) 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:
Level 1 — | 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 following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2010:
Level 2 | ||||||||||||
Other | Level 3 | |||||||||||
Level 1 | Significant | Significant | ||||||||||
Quoted | Observable | Unobservable | ||||||||||
Prices | Inputs | Inputs | Total | |||||||||
Corporate Bonds | $ | — | $ | 361,651,470 | $ | — | $ | 361,651,470 | ||||
Pass Through Certificates | — | 350,896 | — | 350,896 | ||||||||
Money Market Fund | 4,035,000 | — | — | 4,035,000 | ||||||||
Total Investments in Securities* | $ | 4,035,000 | $ | 362,002,366 | $ | — | $ | 366,037,366 |
* The Portfolio of Investments provides information on the industry categorization for corporate bonds. |
See notes to financial statements | 19 |
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 | |
(10/1/09) | (3/31/10) | (10/1/09–3/31/10)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $1,079.57 | $6.79 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,018.40 | $6.59 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $1,075.83 | $10.40 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,014.91 | $10.10 |
* | Expenses are equal to the annualized expense ratio of 1.31% for Class A shares and 2.01% for | |
Class B shares, multiplied by the average account value over the period, multiplied by 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/0000886048-10-000006/equityincomex22x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2010, and are based on the total value of investments.
20 |
Portfolio of Investments
FUND FOR INCOME
March 31, 2010
Principal | |||||
Amount | Security | Value | |||
CORPORATE BONDS—97.5% | |||||
Automotive—2.2% | |||||
$ 2,200 | M | Cooper Tire & Rubber Co., 8%, 2019 | $ 2,167,000 | ||
2,500 | M | Goodyear Tire & Rubber Co., 10.5%, 2016 | 2,712,500 | ||
2,300 | M | Navistar International Corp., 8.25%, 2021 | 2,357,500 | ||
1,000 | M | Oshkosh Corp., 8.5%, 2020 (a) | 1,040,000 | ||
2,325 | M | TRW Automotive, Inc., 7.25%, 2017 (a) | 2,255,250 | ||
10,532,250 | |||||
Building Materials—1.3% | |||||
3,075 | M | Building Materials Corp., 7.5%, 2020 (a)(c) | 3,082,687 | ||
1,375 | M | Interface, Inc., 11.375%, 2013 | 1,557,187 | ||
1,725 | M | Mohawk Industries, Inc., 6.875%, 2016 | 1,789,688 | ||
6,429,562 | |||||
Capital Goods—.6% | |||||
2,650 | M | Belden CDT, Inc., 9.25%, 2019 (a) | 2,842,125 | ||
Chemicals—3.5% | |||||
5,075 | M | Georgia Gulf Corp., 9%, 2017 (a) | 5,335,094 | ||
4,425 | M | Huntsman International, LLC, 5.5%, 2016 (a) | 4,037,812 | ||
2,675 | M | LBI Escrow Corp., 8%, 2017 (a) | 2,778,656 | ||
Solutia, Inc.: | |||||
3,100 | M | 8.75%, 2017 | 3,286,000 | ||
1,275 | M | 7.875%, 2020 | 1,297,313 | ||
500 | M | Titan Petrochemicals Group, Ltd., 8.5%, 2012 (a) | 192,500 | ||
16,927,375 | |||||
Consumer Durables—1.1% | |||||
Sealy Mattress Co.: | |||||
3,500 | M | 8.25%, 2014 | 3,517,500 | ||
1,392 | M | 10.875%, 2016 (a) | 1,566,000 | ||
5,083,500 |
21 |
Portfolio of Investments (continued)
FUND FOR INCOME
March 31, 2010
Principal | |||||
Amount | Security | Value | |||
Consumer Non-Durables—2.0% | |||||
$ 2,575 | M | Acco Brands Corp., 10.625%, 2015 (a) | $ 2,826,062 | ||
1,200 | M | Hanesbrands, Inc., 8%, 2016 | 1,248,000 | ||
2,450 | M | Jarden Corp., 7.5%, 2020 | 2,486,750 | ||
3,125 | M | Levi Strauss & Co., 9.75%, 2015 | 3,289,063 | ||
9,849,875 | |||||
Energy—14.0% | |||||
Berry Petroleum Co.: | |||||
2,600 | M | 10.25%, 2014 | 2,879,500 | ||
1,825 | M | 8.25%, 2016 | 1,856,937 | ||
Chesapeake Energy Corp.: | |||||
1,800 | M | 7.5%, 2014 | 1,836,000 | ||
1,750 | M | 9.5%, 2015 | 1,911,875 | ||
875 | M | Concho Resources, Inc., 8.625%, 2017 | 931,875 | ||
Consol Energy, Inc.: | |||||
2,325 | M | 8%, 2017 (a) | 2,400,562 | ||
4,075 | M | 8.25%, 2020 (a) | 4,207,437 | ||
250 | M | Continental Resources, 8.25%, 2019 | 266,250 | ||
Copano Energy, LLC: | |||||
1,075M | M | 8.125%, 2016 | 1,095,156 | ||
2,275 | M | 7.75%, 2018 | 2,280,687 | ||
2,750 | M | Crosstex Energy, LP, 8.875%, 2018 (a) | 2,849,687 | ||
700 | M | Denbury Resources, Inc., 9.75%, 2016 | 773,500 | ||
El Paso Corp.: | |||||
1,150 | M | 12%, 2013 | 1,351,250 | ||
1,050 | M | 8.25%, 2016 | 1,126,125 | ||
4,725 | M | 7%, 2017 | 4,845,908 | ||
350 | M | 7.25%, 2018 | 362,917 | ||
275 | M | 7.75%, 2032 | 271,593 | ||
700 | M | Encore Acquisition Co., 9.5%, 2016 | 760,375 | ||
2,400 | M | Expro Finance Luxembourg SCA, 8.5%, 2016 (a) | 2,436,000 | ||
Ferrellgas Partners, LP: | |||||
2,350 | M | 9.125%, 2017 (a) | 2,473,375 | ||
2,475 | M | 8.625%, 2020 | 2,481,187 | ||
1,475 | M | Forest Oil Corp., 8.5%, 2014 | 1,563,500 | ||
1,900 | M | Helix Energy Solutions Group, Inc., 9.5%, 2016 (a) | 1,966,500 | ||
Hilcorp Energy I, LP: | |||||
175 | M | 7.75%, 2015 (a) | 173,687 | ||
3,100 | M | 9%, 2016 (a) | 3,239,500 | ||
3,875 | M | 8%, 2020 (a) | 3,778,125 |
22 |
Principal | |||||
Amount | Security | Value | |||
Energy (continued) | |||||
Linn Energy, LLC: | |||||
$ 1,275 | M | 11.75%, 2017 (a) | $ 1,453,500 | ||
1,600 | M | 9.875%, 2018 | 1,720,000 | ||
1,300 | M | 8.625%, 2020 (a) | 1,304,875 | ||
2,250 | M | Mariner Energy, Inc., 11.75%, 2016 | 2,536,875 | ||
1,525 | M | Penn Virginia Corp., 10.375%, 2016 | 1,662,250 | ||
Pioneer Natural Resource Co.: | |||||
375 | M | 6.65%, 2017 | 376,793 | ||
475 | M | 6.875%, 2018 | 477,109 | ||
2,925 | M | 7.5%, 2020 | 3,024,149 | ||
Quicksilver Resources, Inc.: | |||||
1,175 | M | 7.125%, 2016 | 1,122,125 | ||
2,100 | M | 11.75%, 2016 | 2,415,000 | ||
1,775 | M | 9.125%, 2019 | 1,872,625 | ||
68,084,809 | |||||
Financials—1.2% | |||||
1,150 | M | Icahn Enterprises, LP, 7.75%, 2016 (a) | 1,112,625 | ||
International Lease Finance Corp.: | |||||
1,400 | M | 6.375%, 2013 | 1,369,067 | ||
750 | M | 6.625%, 2013 | 730,527 | ||
1,125 | M | 8.625%, 2015 (a) | 1,152,852 | ||
1,500 | M | 8.75%, 2017 (a) | 1,538,300 | ||
5,903,371 | |||||
Food/Beverage/Tobacco—3.8% | |||||
3,675 | M | Bumble Bee Foods, LLC, 7.75%, 2015 (a) | 3,730,125 | ||
3,725 | M | Constellation Brands, Inc., 7.25%, 2016 | 3,846,062 | ||
3,725 | M | JBS USA, LLC, 11.625%, 2014 (a) | 4,265,125 | ||
Smithfield Foods, Inc.: | |||||
2,700 | M | 10%, 2014 (a) | 3,024,000 | ||
3,375 | M | 7.75%, 2017 | 3,332,813 | ||
18,198,125 | |||||
Food/Drug—1.9% | |||||
5,825 | M | Ingles Markets, Inc., 8.875%, 2017 | 6,116,250 | ||
950 | M | Rite Aid Corp., 9.75%, 2016 | 1,026,000 | ||
1,775 | M | Tops Markets, LLC, 10.125%, 2015 (a) | 1,854,875 | ||
8,997,125 |
23 |
Portfolio of Investments (continued)
FUND FOR INCOME
March 31, 2010
Principal | |||||
Amount | Security | Value | |||
Forest Products/Containers—1.1% | |||||
$ 1,000 | M | Crown Americas, LLC, 7.625%, 2017 (a) | $ 1,047,500 | ||
3,775 | M | Reynolds Group Escrow, LLC, 7.75%, 2016 (a) | 3,897,688 | ||
188 | M | Tekni-Plex, Inc., 8.75%, 2013 | 151,340 | ||
5,096,528 | |||||
Gaming/Leisure—5.4% | |||||
1,050 | M | Ameristar Casinos, Inc., 9.25%, 2014 | 1,105,125 | ||
2,300 | M | Equinox Holdings, Inc., 9.5%, 2016 (a) | 2,328,750 | ||
2,550 | M | Las Vegas Sands Corp., 6.375%, 2015 | 2,428,875 | ||
2,610 | M | Mandalay Resort Group, 6.375%, 2011 | 2,512,125 | ||
MGM Mirage, Inc.: | |||||
2,550 | M | 11.375%, 2018 (a) | 2,473,500 | ||
1,950 | M | 9%, 2020 (a) | 2,018,250 | ||
Mohegan Tribal Gaming Authority: | |||||
2,525 | M | 8%, 2012 | 2,341,938 | ||
550 | M | 6.125%, 2013 | 473,000 | ||
3,000 | M | NCL Corp., 11.75%, 2016 (a) | 3,277,500 | ||
Pinnacle Entertainment, Inc.: | |||||
350 | M | 7.5%, 2015 | 304,500 | ||
1,250 | M | 8.625%, 2017 (a) | 1,228,125 | ||
2,925 | M | Wynn Las Vegas, LLC, 7.875%, 2017 (a) | 2,990,813 | ||
2,600 | M | Yonkers Racing Corp., 11.375%, 2016 (a) | 2,821,000 | ||
26,303,501 | |||||
Health Care—5.2% | |||||
2,000 | M | Biomet, Inc., 11.625%, 2017 | 2,250,000 | ||
6,375 | M | Community Health Systems, Inc., 8.875%, 2015 | 6,614,062 | ||
4,400 | M | Genesis Health Ventures, Inc., 9.75%, 2011 (b)(c) | 2,750 | ||
HCA, Inc.: | |||||
5,700 | M | 6.75%, 2013 | 5,728,500 | ||
2,800 | M | 6.375%, 2015 | 2,674,000 | ||
3,025 | M | Res-Care, Inc., 7.75%, 2013 | 3,055,250 | ||
2,475 | M | Talecris Biotherapeutics Holdings Corp., 7.75%, 2016 (a) | 2,499,750 | ||
2,250 | M | Tenet Healthcare Corp., 9.25%, 2015 | 2,370,938 | ||
25,195,250 | |||||
Information Technology—2.4% | |||||
Brocade Communications Systems, Inc.: | |||||
750 | M | 6.625%, 2018 (a) | 766,875 | ||
850 | M | 6.875%, 2020 (a) | 871,250 |
24 |
Principal | |||||
Amount | Security | Value | |||
Information Technology (continued) | |||||
$ 2,425 | M | Equinix, Inc., 8.125%, 2018 | $ 2,522,000 | ||
Jabil Circuit, Inc.: | |||||
350 | M | 7.75%, 2016 | 370,125 | ||
3,825 | M | 8.25%, 2018 | 4,150,125 | ||
1,500 | M | JDA Software Group, Inc., 8%, 2014 (a) | 1,567,500 | ||
1,350 | M | Seagate Technology International, Inc., 10%, 2014 (a) | 1,535,625 | ||
11,783,500 | |||||
Manufacturing—4.0% | |||||
2,650 | M | Baldor Electric Co., 8.625%, 2017 | 2,815,625 | ||
1,175 | M | Case New Holland, Inc., 7.75%, 2013 (a) | 1,224,937 | ||
2,850 | M | Coleman Cable, Inc., 9%, 2018 (a) | 2,892,750 | ||
1,750 | M | CPM Holdings, Inc,, 10.625%, 2014 (a) | 1,872,500 | ||
2,000 | M | ESCO Corp., 8.625%, 2013 (a) | 2,020,000 | ||
Terex Corp.: | |||||
3,100 | M | 10.875%, 2016 | 3,448,750 | ||
5,100 | M | 8%, 2017 | 4,985,250 | ||
19,259,812 | |||||
Media-Broadcasting—2.5% | |||||
Belo Corp.: | |||||
3,500 | M | 7.25%, 2027 | 2,852,500 | ||
725 | M | 7.75%, 2027 | 599,031 | ||
Lin Television Corp.: | |||||
675 | M | 6.5%, 2013 | 668,250 | ||
1,900 | M | 6.5%, 2013 | 1,862,000 | ||
2,029 | M | Nexstar Finance Holdings, LLC, 11.375%, 2013 | 1,821,386 | ||
4,000 | M | Sinclair Television Group, 9.25%, 2017 (a) | 4,230,000 | ||
12,033,167 | |||||
Media-Cable TV—9.3% | |||||
6,250 | M | Atlantic Broadband Finance, LLC, 9.375%, 2014 | 6,281,250 | ||
3,025 | M | Cablevision Systems Corp., 8.625%, 2017 (a) | 3,214,062 | ||
625 | M | CCH II, LLC, 13.5%, 2016 | 754,687 | ||
2,400M | M | CCO Holdings, LLC, 8.75%, 2013 (c) | 2,472,000 | ||
1,900M | M | Cequel Communications Holdings I, Inc., 8.625%, 2017 (a) | 1,961,750 | ||
3,185 | M | Charter Communications Holdings, LLC, 10%, 2012 (a)(c) | 3,399,987 | ||
Clear Channel Worldwide: | |||||
2,500 | M | 9.25%, 2017 (a) | 2,609,375 | ||
5,450 | M | 9.25%, 2017 (a) | 5,722,500 |
25 |
Portfolio of Investments (continued)
FUND FOR INCOME
March 31, 2010
Principal | |||||
Amount | Security | Value | |||
Media-Cable TV (continued) | |||||
$ 1,875 | M | CSC Holdings, Inc., 8.5%, 2014 (a) | $ 2,006,250 | ||
Echostar DBS Corp.: | |||||
2,250 | M | 6.625%, 2014 | 2,272,500 | ||
1,550 | M | 7.75%, 2015 | 1,627,500 | ||
Quebecor Media, Inc.: | |||||
1,025 | M | 7.75%, 2016 | 1,042,938 | ||
1,000 | M | 7.75%, 2016 | 1,017,500 | ||
2,975 | M | UPC Germany GmbH, 8.125%, 2017 (a) | 3,082,844 | ||
1,575 | M | Videotron LTEE, 6.375%, 2015 | 1,594,688 | ||
Virgin Media Finance, PLC: | |||||
4,650 | M | 9.5%, 2016 | 5,103,375 | ||
1,075 | M | 8.375%, 2019 | 1,109,938 | ||
45,273,144 | |||||
Media-Diversified—1.1% | |||||
1,225 | M | Interpublic Group of Cos., Inc., 10%, 2017 | 1,391,906 | ||
1,950 | M | McClatchy Co., 11.5%, 2017 (a) | 2,001,188 | ||
MediaNews Group, Inc.: | |||||
2,625 | M | 6.875%, 2013 (b)(c) | 1,641 | ||
3,100 | M | 6.375%, 2014 (b)(c) | 1,938 | ||
1,975 | M | WMG Acquisition Corp., 9.5%, 2016 (a) | 2,120,656 | ||
5,517,329 | |||||
Metals/Mining—6.0% | |||||
Cloud Peak Energy Resources, LLC: | |||||
750 | M | 8.25%, 2017 (a) | 768,750 | ||
1,700 | M | 8.5%, 2019 (a) | 1,751,000 | ||
1,175 | M | Drummond Co., Inc., 7.375%, 2016 | 1,151,500 | ||
2,875 | M | Essar Steel Algoma, Inc., 9.375%, 2015 (a) | 2,918,125 | ||
Novelis, Inc.: | |||||
2,075 | M | 7.25%, 2015 | 2,012,750 | ||
1,600 | M | 11.5%, 2015 | 1,730,000 | ||
6,010 | M | Russell Metals, Inc., 6.375%, 2014 | 5,656,913 | ||
1,175 | M | Steel Dynamics, Inc., 7.625%, 2020 (a) | 1,210,250 | ||
Teck Resources, Ltd.: | |||||
4,475 | M | 10.25%, 2016 | 5,347,625 | ||
3,150 | M | 10.75%, 2019 | 3,874,500 | ||
2,425 | M | Vedanta Resources PLC, 9.5%, 2018 (a) | 2,691,750 | ||
29,113,163 |
26 |
Principal | |||||
Amount | Security | Value | |||
Real Estate Investment Trusts—2.7% | |||||
$ 1,850 | M | Brandywine Operating Partnership, LP, 5.7%, 2017 | $ 1,758,314 | ||
4,650 | M | CB Richard Ellis Service, 11.625%, 2017 | 5,231,250 | ||
2,175 | M | Developers Diversified Realty Corp., 9.625%, 2016 | 2,435,769 | ||
2,675 | M | Dupont Fabros Technology, LP, 8.5%, 2017 (a) | 2,768,625 | ||
1,000 | M | HRPT Properties Trust, 6.25%, 2017 | 987,635 | ||
13,181,593 | |||||
Retail-General Merchandise—7.6% | |||||
3,075 | M | Federated Retail Holdings, Inc., 5.9%, 2016 | 3,082,687 | ||
2,900 | M | HSN, Inc., 11.25%, 2016 | 3,306,000 | ||
2,050 | M | J.C. Penney Corp., Inc., 7.95%, 2017 | 2,306,250 | ||
2,050 | M | Landry’s Restaurants, Inc., 11.625%, 2015 (a) | 2,214,000 | ||
Macys Retail Holdings, Inc.: | |||||
2,850 | M | 7.45%, 2017 | 3,035,250 | ||
1,050 | M | 6.65%, 2024 | 997,500 | ||
1,025 | M | Netflix, Inc., 8.5%, 2017 | 1,081,375 | ||
2,272 | M | Payless ShoeSource, Inc., 8.25%, 2013 | 2,328,800 | ||
QVC, Inc.: | |||||
1,025 | M | 7.125%, 2017 (a) | 1,036,531 | ||
4,775 | M | 7.5%, 2019 (a) | 4,894,375 | ||
6,950 | M | Toys R Us Property Co. I, Inc., 10.75%, 2017 (a) | 7,784,000 | ||
1,400 | M | Toys R Us Property Co. II, Inc., 8.5%, 2017 (a) | 1,459,500 | ||
3,350 | M | Yankee Acquisition Corp., 8.5%, 2015 | 3,467,250 | ||
36,993,518 | |||||
Services—1.8% | |||||
2,200 | M | Hertz Corp., 10.5%, 2016 | 2,373,250 | ||
Iron Mountain, Inc.: | |||||
225 | M | 8.75%, 2018 | 236,813 | ||
1,125 | M | 8%, 2020 | 1,158,750 | ||
2,275 | M | Kar Holdings, Inc., 8.75%, 2014 | 2,331,875 | ||
2,375 | M | Reliance Intermediate Holdings, LP, 9.5%, 2019 (a) | 2,523,438 | ||
8,624,126 | |||||
Telecommunications—10.5% | |||||
3,800 | M | Cincinnati Bell, Inc., 8.75%, 2018 | 3,852,250 | ||
5,500 | M | Citizens Communications Co., 7.125%, 2019 | 5,252,500 | ||
Frontier Communications Corp.: | |||||
775 | M | 8.25%, 2017 (a) | 792,437 | ||
1,875 | M | 8.125%, 2018 | 1,884,375 | ||
1,050 | M | 8.5%, 2020 (a) | 1,063,125 |
27 |
Portfolio of Investments (continued)
FUND FOR INCOME
March 31, 2010
Principal | |||||
Amount | Security | Value | |||
Telecommunications (continued) | |||||
$ 2,125 | M | GCI, Inc., 8.625%, 2019 (a) | $ 2,175,469 | ||
5,575 | M | Inmarsat Finance PLC, 7.375%, 2017 (a) | 5,825,875 | ||
2,475 | M | Intelsat Corp., 9.25%, 2014 | 2,549,250 | ||
Intelsat Jackson Holdings, Ltd.: | |||||
750M | M | 9.5%, 2016 | 802,500 | ||
72 | M | 8.5%, 2019 (a) | 764,875 | ||
Nextel Communications, Inc.: | |||||
3,550 | M | 5.95%, 2014 | 3,328,125 | ||
5,725 | M | 7.375%, 2015 | 5,467,375 | ||
Qwest Communications International, Inc.: | |||||
3,500 | M | 7.5%, 2014 | 3,578,750 | ||
2,125 | M | 8%, 2015 (a) | 2,273,750 | ||
1,275 | M | Sprint Nextel Corp., 8.375%, 2017 | 1,287,750 | ||
5,050 | M | Wind Acquisition Finance SA, 11.75%, 2017 (a) | 5,605,500 | ||
Windstream Corp.: | |||||
3,100 | M | 8.625%, 2016 | 3,185,250 | ||
1,550 | M | 7.875%, 2017 | 1,534,500 | ||
51,223,656 | |||||
Transportation—1.1% | |||||
Navios Maritime Holdings: | |||||
3,675 | M | 9.5%, 2014 | 3,720,938 | ||
775 | M | 8.875%, 2017 (a) | 806,000 | ||
925 | M | Teekay Corp., 8.5%, 2020 | 971,250 | ||
5,498,188 | |||||
Utilities—5.2% | |||||
875 | M | AES Corp., 9.75%, 2016 (a) | 951,562 | ||
2,600 | M | Calpine Construction Finance Co., LP, 8%, 2016 (a) | 2,671,500 | ||
875 | M | CMS Energy Corp., 8.75%, 2019 | 992,329 | ||
Dynegy Holdings, Inc.: | |||||
1,375 | M | 7.5%, 2015 (a) | 1,141,250 | ||
5,250 | M | 7.75%, 2019 | 3,990,000 | ||
1,650 | M | Edison Mission Energy, 7.5%, 2013 | 1,439,625 | ||
1,700 | M | Energy Future Holdings Corp., 10%, 2020 (a) | 1,780,750 | ||
3,475 | M | Intergen NV, 9%, 2017 (a) | 3,596,625 | ||
1,050 | M | Mirant North America, LLC, 7.375%, 2013 | 1,052,625 |
28 |
Principal | |||||||
Amount, | |||||||
Shares | |||||||
or Warrants | Security | Value | |||||
Utilities (continued) | |||||||
NRG Energy, Inc.: | |||||||
$ 4,625 | M | 7.375%, 2017 | $ 4,590,313 | ||||
1,375 | M | 8.5%, 2019 | 1,399,063 | ||||
2,050 | M | NSG Holdings, LLC, 7.75%, 2025 (a) | 1,855,250 | ||||
25,460,892 | |||||||
Total Value of Corporate Bonds (cost $457,928,711) | 473,405,484 | ||||||
COMMON STOCKS—.0% | |||||||
Automotive—.0% | |||||||
37,387 | * | Safelite Glass Corporation – Class “B” (b) | 7,290 | ||||
2,523 | * | Safelite Realty Corporation (b) | 25 | ||||
7,315 | |||||||
Building Materials—.0% | |||||||
394 | Nortek, Inc. (b) | 14,229 | |||||
Telecommunications—.0% | |||||||
8 | * | Viatel Holding (Bermuda), Ltd. (b) | — | ||||
18,224 | * | World Access, Inc. | 11 | ||||
11 | |||||||
Total Value of Common Stocks (cost $633,746) | 21,555 | ||||||
WARRANTS—.0% | |||||||
Building Materials—.0% | |||||||
1,036 | * | Nortek, Inc. (expiring 12/17/14) (b) | 17,257 | ||||
Media-Cable TV—.0% | |||||||
30,628 | * | Charter Communications, Inc. – Class “A” (expiring 11/30/14) (b) | 183,462 | ||||
Total Value of Warrants (cost $13,441,395) | 200,719 | ||||||
SHORT-TERM INVESTMENTS—2.7% | |||||||
Money Market Fund | |||||||
$ 13,240 | M | First Investors Cash Reserve Fund, .22% (cost $13,240,000) (d) | 13,240,000 | ||||
Total Value of Investments (cost $485,243,852) | 100.2 | % | 486,867,758 | ||||
Excess of Liabilities Over Other Assets | (.2 | ) | (1,283,496) | ||||
Net Assets | 100.0 | % | $485,584,262 |
29 |
Portfolio of Investments (continued)
FUND FOR INCOME
March 31, 2010
* | Non-income producing | |
(a) | Security exempt from registration under Rule 144A of Securities Act of 1933 (see Note 4). | |
(b) | Securities valued at fair value (see Note 1A) | |
(c) | In default as to principal and/or interest payment | |
(d) | 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, 2010 (see Note 2). |
Accounting Standards Codification (“ASC”) 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:
Level 1 — | 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 following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2010:
Level 2 | ||||||||||||
Other | Level 3 | |||||||||||
Level 1 | Significant | Significant | ||||||||||
Quoted | Observable | Unobservable | ||||||||||
Prices | Inputs | Inputs | Total | |||||||||
Corporate Bonds | $ | — | $ | 473,399,155 | $ | 6,329 | $ | 473,405,484 | ||||
Common Stocks | 11 | — | 21,544 | 21,555 | ||||||||
Warrants | — | — | 200,719 | 200,719 | ||||||||
Money Market Fund | 13,240,000 | — | — | 13,240,000 | ||||||||
Total Investments in Securities* | $ | 13,240,011 | $ | 473,399,155 | $ | 228,592 | $ | 486,867,758 |
* | The Portfolio of Investments provides information on the industry categorization for the portfolio. |
30 |
The following is a reconciliation of Fund investments valued using Level 3 inputs for the period:
Investments | Investments | Investments | |||||||||||||
in | in Auction | in | Investments | ||||||||||||
Corporate | Rate | Common | in | ||||||||||||
Bonds | Securities | Stocks | Warrants | Total | |||||||||||
Balance, | |||||||||||||||
September 30, | |||||||||||||||
2009 | $ | 2,750 | $ | 2,120,646 | $ | 14,045 | $ | — | $ | 2,137,441 | |||||
Net purchases | |||||||||||||||
(sales) | — | (2,300,000) | — | — | (2,300,000) | ||||||||||
Change in unrealized | |||||||||||||||
appreciation | |||||||||||||||
(depreciation) | — | 179,354 | (6,730) | — | 172,624 | ||||||||||
Realized | |||||||||||||||
gain (loss) | — | — | — | — | — | ||||||||||
Transfer in and/or | |||||||||||||||
out of Level 3 | 3,579 | — | 14,229 | 200,719 | 218,527 | ||||||||||
Balance, March 31, | |||||||||||||||
2010 | $ | 6,329 | $ | — | $ | 21,544 | $ | 200,719 | $ | 228,592 |
The following is a summary of Level 3 inputs by industry:
Media — Cable TV | $ | 183,462 | |||||
Building Materials | 31,486 | ||||||
Automotive | 7,315 | ||||||
Media — Diversified | 3,579 | ||||||
Health Care | 2,750 | ||||||
$ | 228,592 |
See notes to financial statements | 31 |
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 | |
(10/1/09) | (3/31/10) | (10/1/09–3/31/10)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $1,084.19 | $7.12 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,018.10 | $6.89 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $1,081.16 | $10.74 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,014.61 | $10.40 |
* | Expenses are equal to the annualized expense ratio of 1.37% for Class A shares and 2.07% 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/0000886048-10-000006/equityincomex34x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2010, and are based on the total market value of investments.
32 |
Portfolio of Investments
TOTAL RETURN FUND
March 31, 2010
Shares | Security | Value | ||
COMMON STOCKS—59.8% | ||||
Consumer Discretionary—9.9% | ||||
21,000 | American Greetings Corporation – Class “A” | $ 437,640 | ||
43,500 | * | Big Lots, Inc. | 1,584,270 | |
29,800 | * | BorgWarner, Inc. | 1,137,764 | |
31,400 | Brown Shoe Company, Inc. | 486,072 | ||
64,400 | CBS Corporation – Class “B” | 897,736 | ||
32,800 | * | CEC Entertainment, Inc. | 1,249,680 | |
47,500 | Coach, Inc. | 1,877,200 | ||
77,900 | * | Corinthian Colleges, Inc. | 1,370,261 | |
72,500 | * | GameStop Corporation – Class “A” | 1,588,475 | |
75,700 | H&R Block, Inc. | 1,347,460 | ||
66,400 | Home Depot, Inc. | 2,148,040 | ||
55,200 | * | Jack in the Box, Inc. | 1,299,960 | |
40,800 | Limited Brands, Inc. | 1,004,496 | ||
84,600 | * | Lincoln Educational Services Corporation | 2,140,380 | |
34,900 | McDonald’s Corporation | 2,328,528 | ||
135,300 | * | Morgans Hotel Group Company | 867,273 | |
129,700 | Newell Rubbermaid, Inc. | 1,971,440 | ||
25,500 | NIKE, Inc. – Class “B” | 1,874,250 | ||
15,900 | Polo Ralph Lauren Corporation – Class “A” | 1,352,136 | ||
147,300 | * | Ruby Tuesday, Inc. | 1,556,961 | |
57,100 | Staples, Inc. | 1,335,569 | ||
34,600 | * | Steiner Leisure, Ltd. | 1,533,472 | |
238,800 | Stewart Enterprises, Inc – Class “A” | 1,492,500 | ||
35,700 | Tupperware Brands Corporation | 1,721,454 | ||
76,860 | Wyndham Worldwide Corporation | 1,977,608 | ||
36,580,625 | ||||
Consumer Staples—8.1% | ||||
136,600 | Altria Group, Inc. | 2,803,032 | ||
32,700 | Avon Products, Inc. | 1,107,549 | ||
38,500 | Coca-Cola Company | 2,117,500 | ||
76,800 | CVS Caremark Corporation | 2,807,808 | ||
19,400 | * | Dole Food Company, Inc. | 229,890 | |
12,900 | Kellogg Company | 689,247 | ||
40,600 | McCormick & Company, Inc. | 1,557,416 | ||
107,600 | Nu Skin Enterprises, Inc. – Class “A” | 3,131,160 | ||
32,700 | PepsiCo, Inc. | 2,163,432 | ||
73,000 | Philip Morris International, Inc. | 3,807,680 | ||
30,500 | Procter & Gamble Company | 1,929,735 | ||
59,800 | Safeway, Inc. | 1,486,628 |
33 |
Portfolio of Investments (continued)
TOTAL RETURN FUND
March 31, 2010
Shares | Security | Value | ||
Consumer Staples (continued) | ||||
13,740 | Tootsie Roll Industries, Inc. | $ 371,398 | ||
84,700 | Walgreen Company | 3,141,523 | ||
47,500 | Wal-Mart Stores, Inc. | 2,641,000 | ||
29,984,998 | ||||
Energy—4.2% | ||||
19,700 | Anadarko Petroleum Corporation | 1,434,751 | ||
79,500 | * | Cal Dive International, Inc. | 582,735 | |
28,400 | ConocoPhillips | 1,453,228 | ||
31,900 | ExxonMobil Corporation | 2,136,662 | ||
1,897 | Hugoton Royalty Trust | 31,376 | ||
24,786 | Marathon Oil Corporation | 784,229 | ||
59,700 | * | Noble Corporation | 2,496,654 | |
24,300 | Sasol, Ltd. (ADR) | 1,002,861 | ||
79,900 | Suncor Energy, Inc. | 2,599,946 | ||
16,470 | * | Transocean, Ltd. | 1,422,679 | |
35,600 | XTO Energy, Inc. | 1,679,608 | ||
15,624,729 | ||||
Financials—6.9% | ||||
16,500 | American Express Company | 680,790 | ||
51,100 | Ameriprise Financial, Inc. | 2,317,896 | ||
33,300 | Astoria Financial Corporation | 482,850 | ||
20,897 | Bank of America Corporation | 373,011 | ||
60,600 | Brookline Bancorp, Inc. | 644,784 | ||
20,692 | Capital One Financial Corporation | 856,856 | ||
16,400 | * | Citigroup, Inc. | 66,420 | |
31,650 | Discover Financial Services | 471,585 | ||
181,500 | Financial Select Sector SPDR Fund (ETF) | 2,898,555 | ||
56,650 | First Mercury Financial Corporation | 738,150 | ||
15,300 | FirstMerit Corporation | 330,021 | ||
13,324 | Hartford Financial Services Group, Inc. | 378,668 | ||
89,300 | Hudson City Bancorp, Inc. | 1,264,488 | ||
7,600 | IBERIABANK Corporation | 456,076 | ||
57,900 | JPMorgan Chase & Company | 2,591,025 | ||
24,499 | KeyCorp | 189,867 | ||
53,700 | Morgan Stanley | 1,572,873 | ||
141,000 | New York Community Bancorp, Inc. | 2,332,140 | ||
88,200 | NewAlliance Bancshares, Inc. | 1,113,084 | ||
65,300 | SPDR KBW Regional Banking (ETF) | 1,712,166 | ||
117,572 | Sunstone Hotel Investors, Inc. (REIT) | 1,313,279 |
34 |
Shares | Security | Value | ||
Financials (continued) | ||||
33,300 | U.S. Bancorp | $ 861,804 | ||
29,100 | Urstadt Biddle Properties – Class “A” (REIT) | 460,071 | ||
19,100 | Webster Financial Corporation | 334,059 | ||
35,800 | Wells Fargo & Company | 1,114,096 | ||
25,554,614 | ||||
Health Care—7.1% | ||||
52,300 | Abbott Laboratories | 2,755,164 | ||
15,100 | * | Amgen, Inc. | 902,376 | |
18,500 | Baxter International, Inc. | 1,076,700 | ||
26,500 | Becton, Dickinson & Company | 2,086,345 | ||
23,700 | * | Genzyme Corporation | 1,228,371 | |
39,300 | * | Gilead Sciences, Inc. | 1,787,364 | |
16,300 | * | inVentiv Health, Inc. | 366,098 | |
57,800 | Johnson & Johnson | 3,768,560 | ||
22,700 | * | Laboratory Corporation of America Holdings | 1,718,617 | |
43,300 | Medtronic, Inc. | 1,949,799 | ||
31,600 | Merck & Company, Inc. | 1,180,260 | ||
16,500 | Perrigo Company | 968,880 | ||
135,380 | Pfizer, Inc. | 2,321,767 | ||
32,200 | * | PSS World Medical, Inc. | 757,022 | |
39,900 | Sanofi-Aventis (ADR) | 1,490,664 | ||
21,100 | * | St. Jude Medical, Inc. | 866,155 | |
21,200 | * | Thermo Fisher Scientific, Inc. | 1,090,528 | |
26,314,670 | ||||
Industrials—8.6% | ||||
25,100 | 3M Company | 2,097,607 | ||
45,100 | * | AAR Corporation | 1,119,382 | |
27,600 | Alexander & Baldwin, Inc. | 912,180 | ||
35,504 | * | Altra Holdings, Inc. | 487,470 | |
51,800 | * | Armstrong World Industries, Inc. | 1,880,858 | |
19,600 | Baldor Electric Company | 733,040 | ||
13,200 | Caterpillar, Inc. | 829,620 | ||
57,600 | * | Chicago Bridge & Iron Company NV – NY Shares | 1,339,776 | |
37,400 | * | Esterline Technologies Corporation | 1,848,682 | |
47,000 | * | Generac Holdings, Inc. | 658,470 | |
72,200 | General Electric Company | 1,314,040 | ||
15,900 | Harsco Corporation | 507,846 | ||
46,100 | Honeywell International, Inc. | 2,086,947 | ||
41,300 | IDEX Corporation | 1,367,030 |
35 |
Portfolio of Investments (continued)
TOTAL RETURN FUND
March 31, 2010
Shares | Security | Value | ||
Industrials (continued) | ||||
17,700 | Lockheed Martin Corporation | $ 1,472,994 | ||
32,900 | * | Mistras Group, Inc. | 328,671 | |
70,600 | * | Mobile Mini, Inc. | 1,093,594 | |
19,600 | Northrop Grumman Corporation | 1,285,172 | ||
61,647 | * | PGT, Inc. | 111,581 | |
27,000 | * | Pinnacle Airlines Corporation | 200,610 | |
24,400 | Raytheon Company | 1,393,728 | ||
32,110 | Republic Services, Inc. | 931,832 | ||
111,300 | TAL International Group, Inc. | 2,223,774 | ||
61,600 | Textainer Group Holdings, Ltd. | 1,327,480 | ||
53,275 | Tyco International, Ltd. | 2,037,769 | ||
32,300 | United Technologies Corporation | 2,377,603 | ||
31,967,756 | ||||
Information Technology—10.5% | ||||
18,300 | * | Avago Technologies, Ltd. | 376,248 | |
146,000 | * | Brocade Communications Systems, Inc. | 833,660 | |
23,000 | * | CACI International, Inc. – Class “A” | 1,123,550 | |
64,600 | * | Cisco Systems, Inc. | 1,681,538 | |
116,600 | * | EMC Corporation | 2,103,464 | |
24,700 | Harris Corporation | 1,173,003 | ||
48,500 | Hewlett-Packard Company | 2,577,775 | ||
58,400 | Intel Corporation | 1,299,984 | ||
35,300 | International Business Machines Corporation | 4,527,225 | ||
90,500 | Intersil Corporation – Class “A” | 1,335,780 | ||
148,400 | Microsoft Corporation | 4,343,668 | ||
118,500 | National Semiconductor Corporation | 1,712,325 | ||
54,950 | * | NCI, Inc. – Class “A” | 1,661,139 | |
119,900 | Nokia Corporation – Class “A” (ADR) | 1,863,246 | ||
80,300 | * | Parametric Technology Corporation | 1,449,415 | |
77,400 | QUALCOMM, Inc. | 3,250,026 | ||
80,875 | * | SRA International, Inc. – Class “A” | 1,681,391 | |
137,000 | * | Symantec Corporation | 2,318,040 | |
45,500 | Tyco Electronics, Ltd. | 1,250,340 | ||
97,476 | Western Union Company | 1,653,193 | ||
19,600 | Xilinx, Inc. | 499,800 | ||
38,714,810 |
36 |
Shares or | ||||
Principal | ||||
Amount | Security | Value | ||
Materials—2.8% | ||||
57,000 | Bemis Company, Inc. | $ 1,637,040 | ||
40,400 | Celanese Corporation – Series “A” | 1,286,740 | ||
26,900 | Freeport-McMoRan Copper & Gold, Inc. | 2,247,226 | ||
51,800 | Olin Corporation | 1,016,316 | ||
13,600 | Praxair, Inc. | 1,128,800 | ||
80,600 | RPM International, Inc. | 1,720,004 | ||
56,950 | Temple-Inland, Inc. | 1,163,488 | ||
10,199,614 | ||||
Telecommunication Services—1.3% | ||||
75,800 | AT&T, Inc. | 1,958,672 | ||
91,100 | Verizon Communications, Inc. | 2,825,922 | ||
4,784,594 | ||||
Utilities—.4% | ||||
32,100 | Atmos Energy Corporation | 917,097 | ||
15,700 | Consolidated Edison, Inc. | 699,278 | ||
1,616,375 | ||||
Total Value of Common Stocks (cost $189,428,654) | 221,342,785 | |||
CORPORATE BONDS—25.8% | ||||
Aerospace/Defense—.9% | ||||
$ 1,000 | M | BAE Systems Holdings, Inc., 4.95%, 2014 (a) | 1,050,218 | |
1,000 | M | Lockheed Martin Corp., 4.25%, 2019 | 968,771 | |
1,000 | M | United Technologies Corp., 6.125%, 2019 | 1,126,717 | |
3,145,706 | ||||
Agriculture—.6% | ||||
1,000 | M | Cargill, Inc., 6%, 2017 (a) | 1,087,141 | |
1,000 | M | Potash Corp. of Saskatchewan, Inc., 4.875%, 2020 | 1,003,679 | |
2,090,820 | ||||
Automotive—.3% | ||||
1,000 | M | Daimler Chrysler NA, LLC, 6.5%, 2013 | 1,109,539 | |
Chemicals—.3% | ||||
1,000 | M | Chevron Phillips Chemicals, Co., LLC, 8.25%, 2019 (a) | 1,195,813 |
37 |
Portfolio of Investments (continued)
TOTAL RETURN FUND
March 31, 2010
Principal | ||||
Amount | Security | Value | ||
Consumer Durables—.5% | ||||
$ 1,000 | M | Black & Decker Corp., 8.95%, 2014 | $ 1,184,985 | |
700 | M | Newell Rubbermaid, Inc., 6.75%, 2012 | 755,539 | |
1,940,524 | ||||
Energy—3.7% | ||||
1,000 | M | Canadian Natural Resources, Ltd., 5.9%, 2018 | 1,083,950 | |
500 | M | Canadian Oil Sands, Ltd., 7.75%, 2019 (a) | 589,225 | |
1,000 | M | ConocoPhillips, 5.75%, 2019 | 1,092,000 | |
1,000 | M | Energy Transfer Partners, LP, 8.5%, 2014 | 1,164,339 | |
500 | M | Kinder Morgan Finance Co., 5.35%, 2011 | 511,250 | |
981 | M | Maritime & Northeast Pipeline, LLC, 7.5%, 2014 (a) | 1,073,987 | |
1,000 | M | Nabors Industries, Inc., 5.375%, 2012 | 1,070,805 | |
1,000 | M | Nexen, Inc., 6.4%, 2037 | 1,011,271 | |
1,000 | M | Northern Border Partners, LP, 7.1%, 2011 | 1,044,450 | |
1,000 | M | Shell International Finance BV, 3.25%, 2015 | 1,006,222 | |
500 | M | Spectra Energy Capital, LLC, 6.2%, 2018 | 540,042 | |
1,000 | M | Suncor Energy, Inc., 6.1%, 2018 | 1,079,225 | |
1,000 | M | Trans-Canada Pipelines, Ltd., 7.625%, 2039 | 1,222,548 | |
1,000 | M | Valero Energy Corp., 6.875%, 2012 | 1,084,193 | |
13,573,507 | ||||
Financial Services—2.9% | ||||
1,000 | M | American Express Co., 7%, 2018 | 1,137,554 | |
1,000 | M | American General Finance Corp., 6.9%, 2017 | 877,160 | |
1,000 | M | Ameriprise Financial, Inc., 5.3%, 2020 | 1,013,584 | |
625 | M | Berkshire Hathaway, Inc., 3.2%, 2015 | 631,039 | |
1,000 | M | BlackRock, Inc., 5%, 2019 | 1,002,931 | |
1,000 | M | Caterpillar Financial Services Corp., 5.85%, 2017 | 1,085,626 | |
1,000 | M | CoBank, ACB, 7.875%, 2018 (a) | 1,081,524 | |
927 | M | Ford Motor Credit Co., 9.75%, 2010 | 949,330 | |
1,000 | M | General Electric Capital Corp., 4.375%, 2015 | 1,032,356 | |
1,000 | M | Harley-Davidson Funding Corp., 5.75%, 2014 (a) | 1,020,259 | |
1,000 | M | Prudential Financial, Inc., 6%, 2017 | 1,059,968 | |
10,891,331 | ||||
Financials—3.2% | ||||
1,000 | M | Bank of America Corp., 5.65%, 2018 | 1,013,297 | |
1,000 | M | Barclays Bank, PLC, 5.125%, 2020 | 987,939 | |
1,000 | M | Bear Stearns Cos., Inc., 7.25%, 2018 | 1,157,453 | |
1,000 | M | Citigroup, Inc., 6.375%, 2014 | 1,069,318 |
38 |
Principal | ||||
Amount | Security | Value | ||
Financials (continued) | ||||
$ 1,000 | M | Goldman Sachs Group, Inc., 6.45%, 2036 | $ 969,916 | |
500 | M | Hibernia Corp., 5.35%, 2014 | 494,276 | |
1,000 | M | JPMorgan Chase & Co., 3.7%, 2015 | 1,007,256 | |
1,000 | M | Merrill Lynch & Co., Inc., 5.45%, 2013 | 1,058,704 | |
1,000 | M | Morgan Stanley, 5.3%, 2013 | 1,064,952 | |
1,000 | M | Nationsbank Corp., 7.8%, 2016 | 1,111,132 | |
1,000 | M | SunTrust Banks, Inc., 6%, 2017 | 1,014,413 | |
1,000 | M | Wells Fargo & Co., 3.75%, 2014 | 1,013,152 | |
11,961,808 | ||||
Food/Beverage/Tobacco—2.6% | ||||
1,000 | M | Altria Group, Inc., 10.2%, 2039 | 1,344,500 | |
1,000 | M | Anheuser-Busch InBev Worldwide, Inc., 6.875%, 2019 (a) | 1,150,261 | |
1,170 | M | Bunge Limited Finance Corp., 5.875%, 2013 | 1,247,145 | |
1,000 | M | Coca-Cola Enterprises, Inc., 7.125%, 2017 | 1,175,906 | |
1,270 | M | ConAgra Foods, Inc., 5.875%, 2014 | 1,395,571 | |
1,000 | M | Diageo Capital, PLC, 5.75%, 2017 | 1,085,158 | |
1,000 | M | Dr. Pepper Snapple Group, Inc., 6.82%, 2018 | 1,144,216 | |
1,000 | M | Philip Morris International, Inc., 5.65%, 2018 | 1,078,433 | |
9,621,190 | ||||
Food/Drug—.3% | ||||
935 | M | CVS Caremark Corp., 6.125%, 2039 | 932,425 | |
Forest Products/Containers—.2% | ||||
650 | M | International Paper Co., 9.375%, 2019 | 813,876 | |
Health Care—1.2% | ||||
1,000 | M | Biogen IDEC, Inc., 6.875%, 2018 | 1,097,635 | |
1,200 | M | Novartis, 5.125%, 2019 | 1,274,124 | |
1,000 | M | Pfizer, Inc., 6.2%, 2019 | 1,131,453 | |
1,000 | M | Roche Holdings, Inc., 6%, 2019 (a) | 1,107,054 | |
4,610,266 | ||||
Information Technology—1.1% | ||||
1,000 | M | Cisco Systems, Inc., 4.45%, 2020 | 996,411 | |
1,000 | M | Dell, Inc., 5.875%, 2019 | 1,084,086 | |
1,000 | M | Pitney Bowes, Inc., 5%, 2015 | 1,070,553 | |
1,000 | M | Xerox Corp., 5.5%, 2012 | 1,061,232 | |
4,212,282 |
39 |
Portfolio of Investments (continued)
TOTAL RETURN FUND
March 31, 2010
Principal | ||||
Amount | Security | Value | ||
Manufacturing—.6% | ||||
$ 1,000 | M | Ingersoll-Rand Global Holdings Co., 6.875%, 2018 | $ 1,126,372 | |
1,000 | M | John Deere Capital Corp., 5.35%, 2018 | 1,065,817 | |
2,192,189 | ||||
Media-Broadcasting—1.3% | ||||
1,000 | M | British Sky Broadcasting Group, PLC, 9.5%, 2018 (a) | 1,288,173 | |
1,000 | M | Comcast Corp., 5.15%, 2020 | 1,010,931 | |
Cox Communications, Inc.: | ||||
800 | M | 5.5%, 2015 | 863,233 | |
500 | M | 8.375%, 2039 (a) | 627,303 | |
1,000 | M | Time Warner Cable, Inc., 6.2%, 2013 | 1,104,309 | |
4,893,949 | ||||
Media-Diversified—.4% | ||||
1,000 | M | McGraw-Hill Cos., Inc., 5.9%, 2017 | 1,058,010 | |
500 | M | News America, Inc., 5.3%, 2014 | 548,433 | |
1,606,443 | ||||
Metals/Mining—1.1% | ||||
1,000 | M | ArcelorMittal, 6.125%, 2018 | 1,051,392 | |
1,000 | M | Newmont Mining Corp., 5.125%, 2019 | 1,007,837 | |
1,000 | M | Rio Tinto Finance USA, Ltd., 6.5%, 2018 | 1,127,398 | |
1,000 | M | Vale Overseas, Ltd., 5.625%, 2019 | 1,037,638 | |
4,224,265 | ||||
Real Estate Investment Trusts—.6% | ||||
1,000 | M | ProLogis, 7.625%, 2014 | 1,094,409 | |
1,000 | M | Simon Property Group, LP, 5.75%, 2015 | 1,059,174 | |
2,153,583 | ||||
Telecommunications—1.0% | ||||
1,000 | M | AT&T, Inc., 5.8%, 2019 | 1,070,807 | |
800 | M | GTE Corp., 6.84%, 2018 | 884,734 | |
1,000 | M | Verizon Communications, Inc., 8.75%, 2018 | 1,256,497 | |
400 | M | Verizon Wireless Capital, LLC, 5.55%, 2014 | 437,515 | |
3,649,553 |
40 |
Principal | ||||
Amount | Security | Value | ||
Transportation—.3% | ||||
GATX Corp.: | ||||
$ 500 | M | 8.75%, 2014 | $ 574,011 | |
500 | M | 4.75%, 2015 | 496,823 | |
1,070,834 | ||||
Utilities—2.4% | ||||
1,000 | M | Consolidated Edison Co. of New York, 7.125%, 2018 | 1,181,779 | |
1,000 | M | Duke Energy Corp., 3.35%, 2015 | 994,771 | |
1,000 | M | E. ON International Finance BV, 5.8%, 2018 (a) | 1,083,016 | |
1,000 | M | Electricite de France SA, 6.5%, 2019 (a) | 1,124,039 | |
161 | M | Entergy Gulf States, Inc., 5.25%, 2015 | 160,823 | |
1,000 | M | Exelon Generation Co., LLC, 6.2%, 2017 | 1,089,921 | |
757 | M | Great River Energy Co., 5.829%, 2017 (a) | 837,145 | |
1,000 | M | Ohio Power Co., 5.375%, 2021 | 1,022,976 | |
1,000 | M | Sempra Energy, 9.8%, 2019 | 1,301,660 | |
8,796,130 | ||||
Waste Management—.3% | ||||
1,000 | M | Allied Waste NA, Inc., 7.125%, 2016 | 1,087,602 | |
Total Value of Corporate Bonds (cost $90,468,529) | 95,773,635 | |||
MORTGAGE-BACKED SECURITIES—8.7% | ||||
Fannie Mae—6.6% | ||||
9,736 | M | 5.5%, 5/1/2033 – 1/1/2037 | 10,300,379 | |
8,666 | M | 6%, 5/1/2036 – 7/1/2038 | 9,239,362 | |
2,938 | M | 6.5%, 11/1/2033 – 6/1/2036 | 3,213,141 | |
1,394 | M | 7%, 3/1/2032 – 8/1/2032 | 1,589,571 | |
24,342,453 | ||||
Freddie Mac—2.1% | ||||
4,190 | M | 5.5%, 5/1/2038 – 10/1/2039 | 4,430,233 | |
2,970 | M | 6%, 9/1/2032 – 5/1/2038 | 3,205,386 | |
7,635,619 | ||||
Total Value of Mortgage-Backed Securities (cost $30,478,763) | 31,978,072 |
41 |
Portfolio of Investments (continued)
TOTAL RETURN FUND
March 31, 2010
Principal | |||||||
Amount | Security | Value | |||||
U.S. GOVERNMENT AGENCY | |||||||
OBLIGATIONS—2.1% | |||||||
$2,000 | M | Fannie Mae, 2.5%, 2014 | $ 2,013,336 | ||||
Federal Farm Credit Bank: | |||||||
1,000 | M | 1.875%, 2012 | 1,005,591 | ||||
1,000 | M | 1.75%, 2013 | 998,295 | ||||
Tennessee Valley Authority: | |||||||
1,450 | M | 4.375%, 2015 | 1,544,060 | ||||
2,000 | M | 4.5%, 2018 | 2,066,670 | ||||
Total Value of U.S. Government Agency Obligations (cost $7,534,169) | 7,627,952 | ||||||
MUNICIPAL BONDS—2.0% | |||||||
1,000 | M | Atlanta GA Wtr. & Wastewtr. Rev. Series “A”, 6%, 2029 | 1,052,020 | ||||
1,000 | M | Connecticut St. Hlth. & Educ. Facs. Rev. Series “A-2”, 5%, 2040 | 1,058,450 | ||||
1,000 | M | Hawaii State, Series “DQ” 5%, 2028 | 1,084,450 | ||||
1,000 | M | Lower Colorado River Auth. TX Rev., 5.5%, 2033 | 1,062,550 | ||||
1,000 | M | Massachusetts St. Hlth. & Educ. Facs.Rev. Series “A”, 5%, 2034 | 1,078,470 | ||||
1,000 | M | Minnesota State Ref. Various Purpose, Series “H”, 5%, 2029 | 1,093,500 | ||||
1,000 | M | Salt River Proj. AZ Agric. Impt. & Pwr. Dist. Elec. Sys. | |||||
Rev. Series “A”, 5%, 2029 | 1,071,250 | ||||||
Total Value of Municipal Bonds (cost $7,267,968) | 7,500,690 | ||||||
U.S. GOVERNMENT FDIC | |||||||
GUARANTEED DEBT—.8% | |||||||
Financials | |||||||
2,900 | M | Citigroup Funding, Inc., 1.875%, 2012 (cost $2,909,754) | 2,924,949 | ||||
SHORT-TERM CORPORATE NOTES—.4% | |||||||
Money Market Fund | |||||||
1,400 | M | First Investors Cash Reserve Fund, .22% (cost $1,400,000) (b) | 1,400,000 | ||||
Total Value of Investments (cost $329,487,837) | 99.6 | % | 368,548,083 | ||||
Other Assets, Less Liabilities | .4 | 1,316,241 | |||||
Net Assets | 100.0 | % | $369,864,324 |
42 |
* | 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, 2010 (see Note 2). | |||
Summary of Abbreviations: | |||
ADR | American Depositary Receipts | ||
ETF | Exchange Traded Fund | ||
REIT | Real Estate Investment Trust |
Accounting Standards Codification (“ASC”) 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:
Level 1 — | 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 following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2010:
Level 2 | ||||||||||||
Other | Level 3 | |||||||||||
Level 1 | Significant | Significant | ||||||||||
Quoted | Observable | Unobservable | ||||||||||
Prices | Inputs | Inputs | Total | |||||||||
Common Stocks | $ | 221,342,785 | $ | — | $ | — | $ | 221,342,785 | ||||
Corporate Bonds | — | 95,773,635 | — | 95,773,635 | ||||||||
Mortgage-Backed Certificates | — | 31,978,072 | — | 31,978,072 | ||||||||
U.S. Government Agency | ||||||||||||
Obligations | — | 7,627,952 | — | 7,627,952 | ||||||||
Municipal Bonds | — | 7,500,690 | — | 7,500,690 | ||||||||
U.S. Government FDIC | ||||||||||||
Guaranteed Debt | — | 2,924,949 | — | 2,924,949 | ||||||||
Money Market Fund | 1,400,000 | — | — | 1,400,000 | ||||||||
Total Investments in Securities* | $ | 222,742,785 | $ | 145,805,298 | $ | — | $ | 368,548,083 |
* | The Portfolio of Investments provides information on the industry categorization for common stocks and corporate bonds. |
See notes to financial statements | 43 |
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 | |
(10/1/09) | (3/31/10) | (10/1/09–3/31/10)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $1,107.84 | $7.30 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,018.00 | $6.99 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $1,104.07 | $10.96 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,014.51 | $10.50 |
* | Expenses are equal to the annualized expense ratio of 1.39% for Class A shares and 2.09% for | |
Class B shares, multiplied by the average account value over the period, multiplied by 182/365 | ||
(to reflect the one-half year period). |
Portfolio Composition
TOP TEN SECTORS
![](https://capedge.com/proxy/N-CSRS/0000886048-10-000006/equityincomex46x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2010, and are based on the total market value of investments.
44 |
Portfolio of Investments
VALUE FUND
March 31, 2010
Shares | Security | Value | ||
COMMON STOCKS—95.6% | ||||
Consumer Discretionary—11.7% | ||||
28,400 | Best Buy Company, Inc. | $ 1,208,136 | ||
28,700 | Bob Evans Farms, Inc. | 887,117 | ||
43,300 | Carnival Corporation | 1,683,504 | ||
78,900 | Cinemark Holdings, Inc. | 1,447,026 | ||
86,800 | Comcast Corporation – Special Shares “A” | 1,559,796 | ||
73,700 | Family Dollar Stores, Inc. | 2,698,157 | ||
40,300 | Fortune Brands, Inc. | 1,954,953 | ||
65,100 | Genuine Parts Company | 2,750,475 | ||
100,300 | H&R Block, Inc. | 1,785,340 | ||
80,900 | Home Depot, Inc. | 2,617,115 | ||
45,900 | J.C. Penney Company, Inc. | 1,476,603 | ||
100,400 | Lowe’s Companies, Inc. | 2,433,696 | ||
50,700 | McDonald’s Corporation | 3,382,704 | ||
73,100 | Newell Rubbermaid, Inc. | 1,111,120 | ||
35,900 | Omnicom Group, Inc. | 1,393,279 | ||
104,300 | Pearson, PLC (ADR) | 1,636,467 | ||
128,400 | * | Ruby Tuesday, Inc. | 1,357,188 | |
88,900 | Staples, Inc. | 2,079,371 | ||
66,533 | Time Warner, Inc. | 2,080,487 | ||
129,100 | Walt Disney Company | 4,506,881 | ||
44,220 | Wyndham Worldwide Corporation | 1,137,781 | ||
41,187,196 | ||||
Consumer Staples—17.5% | ||||
74,600 | Avon Products, Inc. | 2,526,702 | ||
27,700 | Clorox Company | 1,776,678 | ||
91,000 | Coca-Cola Company | 5,005,000 | ||
65,400 | ConAgra Foods, Inc. | 1,639,578 | ||
45,800 | Costco Wholesale Corporation | 2,734,718 | ||
53,100 | CVS/Caremark Corporation | 1,941,336 | ||
51,800 | Diageo, PLC (ADR) | 3,493,910 | ||
55,900 | H.J. Heinz Company | 2,549,599 | ||
48,400 | Hershey Corporation | 2,072,004 | ||
69,800 | Kimberly-Clark Corporation | 4,389,024 | ||
169,700 | Kraft Foods, Inc. – Class “A” | 5,131,728 | ||
82,200 | Kroger Company | 1,780,452 | ||
46,100 | McCormick & Company, Inc. | 1,768,396 | ||
77,113 | PepsiCo, Inc. | 5,101,796 | ||
79,600 | Philip Morris International, Inc. | 4,151,936 | ||
26,600 | Procter & Gamble Company | 1,682,982 |
45 |
Portfolio of Investments (continued)
VALUE FUND
March 31, 2010
Shares | Security | Value | ||
Consumer Staples (continued) | ||||
44,800 | Ruddick Corporation | $ 1,417,472 | ||
48,050 | Safeway, Inc. | 1,194,523 | ||
190,200 | Sara Lee Corporation | 2,649,486 | ||
78,800 | Walgreen Company | 2,922,692 | ||
101,800 | Wal-Mart Stores, Inc. | 5,660,080 | ||
61,590,092 | ||||
Energy—8.9% | ||||
42,500 | Anadarko Petroleum Corporation | 3,095,275 | ||
53,500 | BP, PLC (ADR) | 3,053,245 | ||
59,517 | Chevron Corporation | 4,513,174 | ||
69,700 | ConocoPhillips | 3,566,549 | ||
31,300 | Diamond Offshore Drilling, Inc. | 2,779,753 | ||
50,300 | ExxonMobil Corporation | 3,369,094 | ||
25,100 | Hess Corporation | 1,570,005 | ||
110,600 | Marathon Oil Corporation | 3,499,384 | ||
55,800 | Royal Dutch Shell, PLC – Class “A” (ADR) | 3,228,588 | ||
53,700 | Tidewater, Inc. | 2,538,399 | ||
31,213,466 | ||||
Financials—15.4% | ||||
38,300 | ACE, Ltd. | 2,003,090 | ||
42,500 | Allstate Corporation | 1,373,175 | ||
42,700 | Ameriprise Financial, Inc. | 1,936,872 | ||
48,300 | Aon Corporation | 2,062,893 | ||
36,700 | Aspen Insurance Holdings, Ltd. | 1,058,428 | ||
167,200 | Bank Mutual Corporation | 1,086,800 | ||
130,887 | Bank of America Corporation | 2,336,333 | ||
92,328 | Bank of New York Mellon Corporation | 2,851,089 | ||
20,721 | Brookfield Asset Management, Inc. – Class “A” | 526,728 | ||
42,403 | Capital One Financial Corporation | 1,755,908 | ||
48,656 | Chubb Corporation | 2,522,814 | ||
62,847 | Cincinnati Financial Corporation | 1,816,278 | ||
44,800 | Comerica, Inc. | 1,704,192 | ||
40,200 | EMC Insurance Group, Inc. | 905,304 | ||
41,066 | Erie Indemnity Company – Class “A” | 1,771,176 | ||
85,900 | First Potomac Realty Trust (REIT) | 1,291,077 | ||
125,700 | Hudson City Bancorp, Inc. | 1,779,912 | ||
28,500 | IBERIABANK Corporation | 1,710,285 | ||
86,800 | Invesco, Ltd. | 1,901,788 | ||
237,200 | Investors Real Estate Trust (REIT) | 2,139,544 |
46 |
Shares | Security | Value | ||
Financials (continued) | ||||
100,200 | JPMorgan Chase & Company | $ 4,483,950 | ||
59,900 | Morgan Stanley | 1,754,471 | ||
136,100 | NewAlliance Bancshares, Inc. | 1,717,582 | ||
145,300 | People’s United Financial, Inc. | 2,272,492 | ||
44,900 | Plum Creek Timber Company, Inc. (REIT) | 1,747,059 | ||
33,400 | PNC Financial Services Group, Inc. | 1,993,980 | ||
53,600 | Protective Life Corporation | 1,178,664 | ||
25,000 | Waddell & Reed Financial, Inc. – Class “A” | 901,000 | ||
87,200 | Wells Fargo & Company | 2,713,664 | ||
107,400 | Westfield Financial, Inc. | 987,006 | ||
54,283,554 | ||||
Health Care—8.1% | ||||
103,800 | Abbott Laboratories | 5,468,184 | ||
33,400 | Becton, Dickinson & Company | 2,629,582 | ||
32,675 | Covidien PLC | 1,642,899 | ||
62,500 | GlaxoSmithKline, PLC (ADR) | 2,407,500 | ||
98,400 | Johnson & Johnson | 6,415,680 | ||
51,900 | Medtronic, Inc. | 2,337,057 | ||
38,811 | Merck & Company. Inc. | 1,449,591 | ||
55,100 | Novartis AG (ADR) | 2,980,910 | ||
189,500 | Pfizer, Inc. | 3,249,925 | ||
28,581,328 | ||||
Industrials—11.0% | ||||
41,000 | 3M Company | 3,426,370 | ||
43,200 | ABM Industries, Inc. | 915,840 | ||
31,500 | Alexander & Baldwin, Inc. | 1,041,075 | ||
30,600 | * | Armstrong World Industries, Inc. | 1,111,086 | |
47,400 | Avery Dennison Corporation | 1,725,834 | ||
32,700 | Baldor Electric Company | 1,222,980 | ||
57,200 | Dover Corporation | 2,674,100 | ||
21,800 | Emerson Electric Company | 1,097,412 | ||
41,100 | Equifax, Inc. | 1,471,380 | ||
45,100 | General Dynamics Corporation | 3,481,720 | ||
149,800 | General Electric Company | 2,726,360 | ||
76,000 | Honeywell International, Inc. | 3,440,520 | ||
54,900 | Illinois Tool Works, Inc. | 2,600,064 | ||
52,700 | ITT Corporation | 2,825,247 | ||
17,280 | Lawson Products, Inc. | 267,322 | ||
21,800 | Lockheed Martin Corporation | 1,814,196 |
47 |
Portfolio of Investments (continued)
VALUE FUND
March 31, 2010
Shares | Security | Value | ||
Industrials (continued) | ||||
51,600 | Pitney Bowes, Inc. | $ 1,261,620 | ||
47,800 | Textainer Group Holdings, Ltd. | 1,030,090 | ||
38,175 | Tyco International, Ltd. | 1,460,194 | ||
51,000 | United Parcel Service, Inc. – Class “B” | 3,284,910 | ||
38,878,320 | ||||
Information Technology—9.1% | ||||
83,700 | Automatic Data Processing, Inc. | 3,722,139 | ||
108,600 | AVX Corporation | 1,542,120 | ||
58,865 | Bel Fuse, Inc. – Class “B” | 1,186,130 | ||
56,900 | * | Electronic Arts, Inc. | 1,061,754 | |
87,400 | Hewlett-Packard Company | 4,645,310 | ||
83,700 | Intel Corporation | 1,863,162 | ||
15,100 | International Business Machines Corporation | 1,936,575 | ||
114,600 | Intersil Corporation – Class “A” | 1,691,496 | ||
125,925 | Methode Electronics, Inc. | 1,246,657 | ||
154,200 | Microsoft Corporation | 4,513,434 | ||
86,800 | Molex, Inc. | 1,810,648 | ||
121,500 | National Semiconductor Corporation | 1,755,675 | ||
132,300 | Nokia Corporation – Class “A” (ADR) | 2,055,942 | ||
72,000 | Texas Instruments, Inc. | 1,761,840 | ||
51,275 | Tyco Electronics, Ltd. | 1,409,037 | ||
32,201,919 | ||||
Materials—5.7% | ||||
20,900 | Air Products & Chemicals, Inc. | 1,545,555 | ||
70,200 | Alcoa, Inc. | 999,648 | ||
92,200 | Bemis Company, Inc. | 2,647,984 | ||
22,600 | Compass Minerals International, Inc. | 1,813,198 | ||
106,300 | Dow Chemical Company | 3,143,291 | ||
114,000 | DuPont (E.I.) de Nemours & Company | 4,245,360 | ||
80,300 | Glatfelter | 1,163,547 | ||
29,100 | PPG Industries, Inc. | 1,903,140 | ||
87,200 | Sonoco Products Company | 2,684,888 | ||
20,146,611 |
48 |
Shares or | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Telecommunication Services—3.6% | |||||||
172,830 | AT&T, Inc. | $ 4,465,927 | |||||
29,045 | CenturyTel, Inc. | 1,029,936 | |||||
23,900 | Telephone & Data Systems, Inc. | 809,015 | |||||
39,900 | Telephone & Data Systems, Inc. – Special Shares | 1,190,616 | |||||
166,628 | Verizon Communications, Inc. | 5,168,800 | |||||
12,664,294 | |||||||
Utilities—4.6% | |||||||
50,900 | American Electric Power Company, Inc. | 1,739,762 | |||||
20,150 | American States Water Company | 699,205 | |||||
61,100 | Duke Energy Corporation | 997,152 | |||||
37,400 | FPL Group, Inc. | 1,807,542 | |||||
73,650 | MDU Resources Group, Inc. | 1,589,367 | |||||
130,300 | NiSource, Inc. | 2,058,740 | |||||
36,800 | ONEOK, Inc. | 1,679,920 | |||||
67,500 | Portland General Electric Company | 1,303,425 | |||||
56,700 | Southwest Gas Corporation | 1,696,464 | |||||
61,700 | Vectren Corporation | 1,525,224 | |||||
21,700 | Wisconsin Energy Corporation | 1,072,197 | |||||
16,168,998 | |||||||
Total Value of Common Stocks (cost $297,497,582) | 336,915,778 | ||||||
PREFERRED STOCKS—.6% | |||||||
Telecommunication Services—.4% | |||||||
49,800 | AT&T, Inc., 6.375%, 2056 | 1,313,724 | |||||
Utilities—.2% | |||||||
36,600 | Entergy Louisiana, LLC, 7.6%, 2032 | 918,294 | |||||
Total Value of Preferred Stocks (cost $2,171,926) | 2,232,018 | ||||||
SHORT-TERM INVESTMENTS—3.8% | |||||||
Money Market Fund | |||||||
$ 13,315 | M | First Investors Cash Reserve Fund, .22% (cost $13,315,000)** | 13,315,000 | ||||
Total Value of Investments (cost $312,984,508) | 100.0 | % | 352,462,796 | ||||
Excess of Liabilities Over Other Assets | — | (63,758) | |||||
Net Assets | 100.0 | % | $352,399,038 |
49 |
Portfolio of Investments (continued)
VALUE FUND
March 31, 2010
* | 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, 2010 (see Note 2). | |||
Summary of Abbreviations: | |||
ADR | American Depositary Receipts | ||
REIT | Real Estate Investment Trust |
Accounting Standards Codification (“ASC”) 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:
Level 1 — | 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 following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2010:
Level 2 | ||||||||||||
Other | Level 3 | |||||||||||
Level 1 | Significant | Significant | ||||||||||
Quoted | Observable | Unobservable | ||||||||||
Prices | Inputs | Inputs | Total | |||||||||
Common Stocks | $ | 336,915,778 | $ | — | $ | — | $ | 336,915,778 | ||||
Preferred Stocks | 2,232,018 | — | — | 2,232,018 | ||||||||
Money Market Fund | 13,315,000 | — | — | 13,315,000 | ||||||||
Total Investments in Securities* | $ | 352,462,796 | $ | — | $ | — | $ | 352,462,796 |
* | The Portfolio of Investments provides information on the industry categorization for the portfolio. |
50 | See notes to financial statements |
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 | |
(10/1/09) | (3/31/10) | (10/1/09–3/31/10)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $1,100.13 | $7.64 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,017.65 | $7.34 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $1,096.33 | $11.29 |
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/0000886048-10-000006/equityincomex53x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2010, and are based on the total market value of investments.
51 |
Portfolio of Investments
BLUE CHIP FUND
March 31, 2010
Shares | Security | Value | ||
COMMON STOCKS—99.4% | ||||
Consumer Discretionary—9.7% | ||||
53,600 | Best Buy Company, Inc. | $ 2,280,144 | ||
169,150 | Comcast Corporation – Special Class “A” | 3,039,625 | ||
115,900 | H&R Block, Inc. | 2,063,020 | ||
94,000 | Home Depot, Inc. | 3,040,900 | ||
48,300 | * | Kohl’s Corporation | 2,645,874 | |
167,000 | Lowe’s Companies, Inc. | 4,048,080 | ||
45,800 | McDonald’s Corporation | 3,055,776 | ||
29,000 | NIKE, Inc. – Class “B” | 2,131,500 | ||
52,800 | Omnicom Group, Inc. | 2,049,168 | ||
92,500 | Staples, Inc. | 2,163,575 | ||
57,500 | Target Corporation | 3,024,500 | ||
97,433 | Time Warner, Inc. | 3,046,730 | ||
70,600 | * | Viacom, Inc. – Class “B” | 2,427,228 | |
123,600 | Walt Disney Company | 4,314,876 | ||
39,330,996 | ||||
Consumer Staples—15.1% | ||||
67,100 | Avon Products, Inc. | 2,272,677 | ||
49,915 | Clorox Company | 3,201,548 | ||
105,000 | Coca-Cola Company | 5,775,000 | ||
46,900 | Costco Wholesale Corporation | 2,800,399 | ||
115,000 | CVS Caremark Corporation | 4,204,400 | ||
38,300 | Kellogg Company | 2,046,369 | ||
69,300 | Kimberly-Clark Corporation | 4,357,584 | ||
128,024 | Kraft Foods, Inc. – Class “A” | 3,871,446 | ||
97,200 | Kroger Company | 2,105,352 | ||
116,000 | PepsiCo, Inc. | 7,674,560 | ||
94,600 | Philip Morris International, Inc. | 4,934,336 | ||
91,960 | Procter & Gamble Company | 5,818,309 | ||
115,000 | Walgreen Company | 4,265,350 | ||
136,130 | Wal-Mart Stores, Inc. | 7,568,828 | ||
60,896,158 | ||||
Energy—10.3% | ||||
42,000 | BP, PLC (ADR) | 2,396,940 | ||
106,600 | Chevron Corporation | 8,083,478 | ||
89,870 | ConocoPhillips | 4,598,648 | ||
48,500 | Devon Energy Corporation | 3,124,855 | ||
163,200 | ExxonMobil Corporation | 10,931,136 |
52 |
Shares | Security | Value | ||
Energy (continued) | ||||
68,990 | Halliburton Company | $ 2,078,669 | ||
33,700 | Hess Corporation | 2,107,935 | ||
66,100 | Marathon Oil Corporation | 2,091,404 | ||
64,400 | Schlumberger, Ltd. | 4,086,824 | ||
24,251 | * | Transocean, Ltd. | 2,094,801 | |
41,594,690 | ||||
Financials—13.1% | ||||
52,400 | ACE, Ltd. | 2,740,520 | ||
65,300 | Allstate Corporation | 2,109,843 | ||
97,100 | American Express Company | 4,006,346 | ||
59,000 | Ameriprise Financial, Inc. | 2,676,240 | ||
170,236 | Bank of America Corporation | 3,038,712 | ||
134,287 | Bank of New York Mellon Corporation | 4,146,783 | ||
56,700 | Capital One Financial Corporation | 2,347,947 | ||
50,700 | Chubb Corporation | 2,628,795 | ||
143,800 | Hudson City Bancorp, Inc. | 2,036,208 | ||
173,668 | JPMorgan Chase & Company | 7,771,643 | ||
89,500 | Marsh & McLennan Companies, Inc. | 2,185,590 | ||
48,300 | MetLife, Inc. | 2,093,322 | ||
70,700 | Morgan Stanley | 2,070,803 | ||
37,900 | Northern Trust Corporation | 2,094,354 | ||
53,000 | State Street Corporation | 2,392,420 | ||
57,700 | Travelers Companies, Inc. | 3,112,338 | ||
86,500 | U.S. Bancorp | 2,238,620 | ||
106,500 | Wells Fargo & Company | 3,314,280 | ||
53,004,764 | ||||
Health Care—14.5% | ||||
122,600 | Abbott Laboratories | 6,458,568 | ||
69,900 | * | Amgen, Inc. | 4,177,224 | |
145,800 | Bristol-Myers Squibb Company | 3,892,860 | ||
26,800 | C.R. Bard, Inc. | 2,321,416 | ||
48,800 | * | Gilead Sciences, Inc. | 2,219,424 | |
169,200 | Johnson & Johnson | 11,031,840 | ||
31,300 | McKesson Corporation | 2,057,036 | ||
93,500 | Medtronic, Inc. | 4,210,305 | ||
88,700 | Merck & Company. Inc. | 3,312,945 | ||
77,300 | Novartis AG (ADR) | 4,181,930 | ||
345,178 | Pfizer, Inc. | 5,919,803 | ||
37,600 | Quest Diagnostics, Inc. | 2,191,704 |
53 |
Portfolio of Investments (continued)
BLUE CHIP FUND
March 31, 2010
Shares | Security | Value | ||
Health Care (continued) | ||||
61,100 | * | St. Jude Medical, Inc. | $ 2,508,155 | |
32,600 | Teva Pharmaceutical Industries, Ltd. (ADR) | 2,056,408 | ||
36,000 | * | Zimmer Holdings, Inc. | 2,131,200 | |
58,670,818 | ||||
Industrials—11.7% | ||||
48,700 | 3M Company | 4,069,859 | ||
39,100 | Danaher Corporation | 3,124,481 | ||
41,000 | Emerson Electric Company | 2,063,940 | ||
391,500 | General Electric Company | 7,125,300 | ||
73,700 | Honeywell International, Inc. | 3,336,399 | ||
43,500 | Illinois Tool Works, Inc. | 2,060,160 | ||
72,100 | Ingersoll-Rand, PLC | 2,514,127 | ||
61,200 | ITT Corporation | 3,280,932 | ||
41,000 | Lockheed Martin Corporation | 3,412,020 | ||
37,600 | Northrop Grumman Corporation | 2,465,432 | ||
46,500 | Raytheon Company | 2,656,080 | ||
67,475 | Tyco International, Ltd. | 2,580,919 | ||
36,600 | United Parcel Service, Inc. – Class “B” | 2,357,406 | ||
83,900 | United Technologies Corporation | 6,175,879 | ||
47,222,934 | ||||
Information Technology—18.3% | ||||
186,900 | Activision Blizzard, Inc. | 2,254,014 | ||
57,500 | * | Adobe Systems, Inc. | 2,033,775 | |
16,900 | * | Apple, Inc. | 3,970,317 | |
49,000 | Automatic Data Processing, Inc. | 2,179,030 | ||
272,200 | * | Cisco Systems, Inc. | 7,085,366 | |
178,425 | * | EMC Corporation | 3,218,787 | |
135,000 | Hewlett-Packard Company | 7,175,250 | ||
281,700 | Intel Corporation | 6,270,642 | ||
53,600 | International Business Machines Corporation | 6,874,200 | ||
510,745 | Microsoft Corporation | 14,949,506 | ||
149,200 | Nokia Corporation – Class “A” (ADR) | 2,318,568 | ||
179,000 | Oracle Corporation | 4,598,510 | ||
63,170 | QUALCOMM, Inc. | 2,652,508 | ||
117,300 | * | Symantec Corporation | 1,984,716 |
54 |
Shares or | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Information Technology (continued) | |||||||
99,600 | Texas Instruments, Inc. | $ 2,437,212 | |||||
119,600 | Western Union Company | 2,028,416 | |||||
125,600 | * | Yahoo!, Inc. | 2,076,168 | ||||
74,106,985 | |||||||
Materials—2.0% | |||||||
68,200 | Dow Chemical Company | 2,016,674 | |||||
102,900 | DuPont (E.I.) de Nemours & Company | 3,831,996 | |||||
33,700 | PPG Industries, Inc. | 2,203,980 | |||||
8,052,650 | |||||||
Telecommunication Services—2.8% | |||||||
201,300 | AT&T, Inc. | 5,201,592 | |||||
200,600 | Verizon Communications, Inc. | 6,222,612 | |||||
11,424,204 | |||||||
Utilities—1.9% | |||||||
62,500 | American Electric Power, Inc. | 2,136,250 | |||||
141,800 | Duke Energy Corporation | 2,314,176 | |||||
62,200 | FPL Group, Inc. | 3,006,126 | |||||
7,456,552 | |||||||
Total Value of Common Stocks (cost $313,754,230) | 401,760,751 | ||||||
SHORT-TERM INVESTMENTS—.4% | |||||||
Money Market Fund | |||||||
$ 1,750 | M | First Investors Cash Reserve Fund, .22% (cost $1,750,000)** | 1,750,000 | ||||
Total Value of Investments (cost $315,504,230) | 99.8 | % | 403,510,751 | ||||
Other Assets, Less Liabilities | .2 | 755,246 | |||||
Net Assets | 100.0 | % | $404,265,997 |
55 |
Portfolio of Investments (continued)
BLUE CHIP FUND
March 31, 2010
* | 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, 2010 (see Note 2). | |||
Summary of Abbreviations: | |||
ADR | American Depositary Receipts |
Accounting Standards Codification (“ASC”) 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:
Level 1 — 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 following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2010:
Level 2 | ||||||||||||
Other | Level 3 | |||||||||||
Level 1 | Significant | Significant | ||||||||||
Quoted | Observable | Unobservable | ||||||||||
Prices | Inputs | Inputs | Total | |||||||||
Common Stocks | $ | 401,760,751 | $ | — | $ | — | $ | 401,760,751 | ||||
Money Market Fund | 1,750,000 | — | — | 1,750,000 | ||||||||
Total Investments in Securities* | $ | 403,510,751 | $ | — | $ | — | $ | 403,510,751 |
* | The Portfolio of Investments provides information on the industry categorization for the portfolio. |
56 | See notes to financial statements |
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 | |
(10/1/09) | (3/31/10) | (10/1/09–3/31/10)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $1,124.91 | $7.36 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,018.00 | $6.99 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $1,122.11 | $11.06 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,014.51 | $10.50 |
* | Expenses are equal to the annualized expense ratio of 1.39% for Class A shares and 2.09% for | |
Class B shares, multiplied by the average account value over the period, multiplied by 182/365 | ||
(to reflect the one-half year period). |
Portfolio Composition
TOP TEN SECTORS
![](https://capedge.com/proxy/N-CSRS/0000886048-10-000006/equityincomex59x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2010, and are based on the total market value of investments.
57 |
Portfolio of Investments
GROWTH & INCOME FUND
March 31, 2010
Shares | Security | Value | ||
COMMON STOCKS—99.6% | ||||
Consumer Discretionary—16.6% | ||||
65,000 | American Greetings Corporation – Class “A” | $ 1,354,600 | ||
135,000 | * | Big Lots, Inc. | 4,916,700 | |
110,000 | * | BorgWarner, Inc. | 4,199,800 | |
99,025 | Brown Shoe Company, Inc. | 1,532,907 | ||
195,000 | CBS Corporation – Class “B” | 2,718,300 | ||
100,000 | * | CEC Entertainment, Inc. | 3,810,000 | |
146,250 | Coach, Inc. | 5,779,800 | ||
240,000 | * | Corinthian Colleges, Inc. | 4,221,600 | |
225,000 | * | GameStop Corporation – Class “A” | 4,929,750 | |
233,300 | H&R Block, Inc. | 4,152,740 | ||
200,000 | Home Depot, Inc. | 6,470,000 | ||
160,000 | * | Jack in the Box, Inc. | 3,768,000 | |
125,000 | Limited Brands, Inc. | 3,077,500 | ||
262,000 | * | Lincoln Educational Services Corporation | 6,628,600 | |
110,000 | McDonald’s Corporation | 7,339,200 | ||
445,000 | * | Morgans Hotel Group Company | 2,852,450 | |
400,000 | Newell Rubbermaid, Inc. | 6,080,000 | ||
75,000 | NIKE, Inc. – Class “B” | 5,512,500 | ||
48,750 | Polo Ralph Lauren Corporation – Class “A” | 4,145,700 | ||
450,000 | * | Ruby Tuesday, Inc. | 4,756,500 | |
175,500 | Staples, Inc. | 4,104,945 | ||
105,002 | * | Steiner Leisure, Ltd. | 4,653,689 | |
741,800 | Stewart Enterprises, Inc. – Class “A” | 4,636,250 | ||
110,000 | Tupperware Brands Corporation | 5,304,200 | ||
234,000 | Wyndham Worldwide Corporation | 6,020,820 | ||
112,966,551 | ||||
Consumer Staples—13.4% | ||||
420,000 | Altria Group, Inc. | 8,618,400 | ||
100,000 | Avon Products, Inc. | 3,387,000 | ||
115,000 | Coca-Cola Company | 6,325,000 | ||
240,000 | CVS Caremark Corporation | 8,774,400 | ||
60,000 | * | Dole Food Company, Inc. | 711,000 | |
40,000 | Kellogg Company | 2,137,200 | ||
125,000 | McCormick & Company, Inc. | 4,795,000 | ||
327,300 | Nu Skin Enterprises, Inc. – Class “A” | 9,524,430 | ||
100,000 | PepsiCo, Inc. | 6,616,000 | ||
225,000 | Philip Morris International, Inc. | 11,736,000 | ||
90,562 | Procter & Gamble Company | 5,729,858 | ||
175,000 | Safeway, Inc. | 4,350,500 |
58 |
Shares | Security | Value | ||
Consumer Staples (continued) | ||||
42,914 | Tootsie Roll Industries, Inc. | $ 1,159,963 | ||
250,000 | Walgreen Company | 9,272,500 | ||
146,250 | Wal-Mart Stores, Inc. | 8,131,500 | ||
91,268,751 | ||||
Energy—7.1% | ||||
58,046 | Anadarko Petroleum Corporation | 4,227,490 | ||
234,625 | * | Cal Dive International, Inc. | 1,719,801 | |
87,750 | ConocoPhillips | 4,490,168 | ||
100,000 | ExxonMobil Corporation | 6,698,000 | ||
6,920 | Hugoton Royalty Trust | 114,457 | ||
76,519 | Marathon Oil Corporation | 2,421,061 | ||
182,700 | * | Noble Corporation | 7,640,514 | |
78,000 | Sasol, Ltd. (ADR) | 3,219,060 | ||
237,900 | Suncor Energy, Inc. | 7,741,266 | ||
53,208 | * | Transocean, Ltd. | 4,596,107 | |
110,000 | XTO Energy, Inc. | 5,189,800 | ||
48,057,724 | ||||
Financials—11.5% | ||||
50,700 | American Express Company | 2,091,882 | ||
157,500 | Ameriprise Financial, Inc. | 7,144,200 | ||
102,625 | Astoria Financial Corporation | 1,488,062 | ||
64,260 | Bank of America Corporation | 1,147,041 | ||
182,000 | Brookline Bancorp, Inc. | 1,936,480 | ||
63,745 | Capital One Financial Corporation | 2,639,680 | ||
61,150 | * | Citigroup, Inc. | 247,657 | |
97,500 | Discover Financial Services | 1,452,750 | ||
550,000 | Financial Select Sector SPDR Fund (ETF) | 8,783,500 | ||
175,500 | First Mercury Financial Corporation | 2,286,765 | ||
46,900 | FirstMerit Corporation | 1,011,633 | ||
48,750 | Hartford Financial Services Group, Inc. | 1,385,475 | ||
275,000 | Hudson City Bancorp, Inc. | 3,894,000 | ||
24,000 | IBERIABANK Corporation | 1,440,240 | ||
173,062 | JPMorgan Chase & Company | 7,744,524 | ||
88,725 | KeyCorp | 687,619 | ||
165,750 | Morgan Stanley | 4,854,818 | ||
425,000 | New York Community Bancorp, Inc. | 7,029,500 | ||
265,000 | NewAlliance Bancshares, Inc. | 3,344,300 | ||
200,000 | SPDR KBW Regional Banking (ETF) | 5,244,000 | ||
357,666 | * | Sunstone Hotel Investors, Inc. (REIT) | 3,995,129 |
59 |
Portfolio of Investments (continued)
GROWTH & INCOME FUND
March 31, 2010
Shares | Security | Value | ||
Financials (continued) | ||||
100,000 | U.S. Bancorp | $ 2,588,000 | ||
90,000 | Urstadt Biddle Properties – Class “A” (REIT) | 1,422,900 | ||
58,500 | Webster Financial Corporation | 1,023,165 | ||
110,450 | Wells Fargo & Company | 3,437,204 | ||
78,320,524 | ||||
Health Care—11.7% | ||||
155,000 | Abbott Laboratories | 8,165,400 | ||
45,532 | * | Amgen, Inc. | 2,720,992 | |
55,000 | Baxter International, Inc. | 3,201,000 | ||
81,600 | Becton, Dickinson & Company | 6,424,368 | ||
70,000 | * | Genzyme Corporation | 3,628,100 | |
120,000 | * | Gilead Sciences, Inc. | 5,457,600 | |
50,000 | * | inVentiv Health, Inc. | 1,123,000 | |
170,625 | Johnson & Johnson | 11,124,750 | ||
70,000 | * | Laboratory Corporation of America Holdings | 5,299,700 | |
133,125 | Medtronic, Inc. | 5,994,619 | ||
97,500 | Merck & Company. Inc. | 3,641,625 | ||
50,000 | Perrigo Company | 2,936,000 | ||
414,375 | Pfizer, Inc. | 7,106,531 | ||
100,000 | * | PSS World Medical, Inc. | 2,351,000 | |
121,875 | Sanofi-Aventis (ADR) | 4,553,250 | ||
65,000 | * | St. Jude Medical, Inc. | 2,668,250 | |
65,000 | * | Thermo Fisher Scientific, Inc. | 3,343,600 | |
79,739,785 | ||||
Industrials—14.4% | ||||
78,000 | 3M Company | 6,518,460 | ||
130,000 | * | AAR Corporation | 3,226,600 | |
82,485 | Alexander & Baldwin, Inc. | 2,726,129 | ||
129,382 | * | Altra Holdings, Inc. | 1,776,415 | |
175,000 | * | Armstrong World Industries, Inc. | 6,354,250 | |
61,200 | Baldor Electric Company | 2,288,880 | ||
40,900 | Caterpillar, Inc. | 2,570,565 | ||
175,500 | * | Chicago Bridge & Iron Company NV – NY Shares | 4,082,130 | |
115,000 | * | Esterline Technologies Corporation | 5,684,450 | |
145,000 | * | Generac Holdings, Inc. | 2,031,450 | |
219,375 | General Electric Company | 3,992,625 | ||
50,000 | Harsco Corporation | 1,597,000 | ||
136,500 | Honeywell International, Inc. | 6,179,355 | ||
121,875 | IDEX Corporation | 4,034,063 |
60 |
Shares | Security | Value | ||
Industrials (continued) | ||||
55,000 | Lockheed Martin Corporation | $ 4,577,100 | ||
100,000 | * | Mistras Group, Inc. | 999,000 | |
216,450 | * | Mobile Mini, Inc. | 3,352,811 | |
60,000 | Northrop Grumman Corporation | 3,934,200 | ||
224,538 | * | PGT, Inc. | 406,414 | |
96,743 | * | Pinnacle Airlines Corporation | 718,800 | |
75,000 | Raytheon Company | 4,284,000 | ||
98,900 | Republic Services, Inc. | 2,870,078 | ||
341,700 | TAL International Group, Inc. | 6,827,166 | ||
182,300 | Textainer Group Holdings, Ltd. | 3,928,565 | ||
160,000 | Tyco International, Ltd. | 6,120,000 | ||
100,000 | United Technologies Corporation | 7,361,000 | ||
98,441,506 | ||||
Information Technology—17.4% | ||||
56,300 | * | Avago Technologies, Ltd. | 1,157,528 | |
450,000 | * | Brocade Communications Systems, Inc. | 2,569,500 | |
68,000 | * | CACI International, Inc. – Class “A” | 3,321,800 | |
200,000 | * | Cisco Systems, Inc. | 5,206,000 | |
361,725 | * | EMC Corporation | 6,525,519 | |
75,000 | Harris Corporation | 3,561,750 | ||
150,000 | Hewlett-Packard Company | 7,972,500 | ||
180,375 | Intel Corporation | 4,015,148 | ||
108,525 | International Business Machines Corporation | 13,918,331 | ||
280,000 | Intersil Corporation – Class “A” | 4,132,800 | ||
450,000 | Microsoft Corporation | 13,171,500 | ||
365,000 | National Semiconductor Corporation | 5,274,250 | ||
170,000 | * | NCI, Inc. – Class “A” | 5,139,100 | |
358,125 | Nokia Corporation – Class “A” (ADR) | 5,565,263 | ||
248,625 | * | Parametric Technology Corporation | 4,487,681 | |
240,000 | QUALCOMM, Inc. | 10,077,600 | ||
245,500 | * | SRA International, Inc. – Class “A” | 5,103,945 | |
425,625 | * | Symantec Corporation | 7,201,575 | |
140,000 | Tyco Electronics, Ltd. | 3,847,200 | ||
300,000 | Western Union Company | 5,088,000 | ||
60,000 | Xilinx, Inc. | 1,530,000 | ||
118,866,990 |
61 |
Portfolio of Investments (continued)
GROWTH & INCOME FUND
March 31, 2010
Shares or | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Materials—4.6% | |||||||
175,000 | Bemis Company, Inc. | $ 5,026,000 | |||||
125,000 | Celanese Corporation – Series “A” | 3,981,250 | |||||
80,000 | Freeport-McMoRan Copper & Gold, Inc. | 6,683,200 | |||||
160,000 | Olin Corporation | 3,139,200 | |||||
40,000 | Praxair, Inc. | 3,320,000 | |||||
249,125 | RPM International, Inc. | 5,316,328 | |||||
176,250 | Temple-Inland, Inc. | 3,600,788 | |||||
31,066,766 | |||||||
Telecommunication Services—2.2% | |||||||
234,000 | AT&T, Inc. | 6,046,560 | |||||
280,000 | Verizon Communications, Inc. | 8,685,600 | |||||
14,732,160 | |||||||
Utilities—.7% | |||||||
100,000 | Atmos Energy Corporation | 2,857,000 | |||||
48,371 | Consolidated Edison, Inc. | 2,154,444 | |||||
5,011,444 | |||||||
Total Value of Common Stocks (cost $599,762,173) | 678,472,201 | ||||||
SHORT-TERM INVESTMENTS—.7% | |||||||
Money Market Fund | |||||||
$4,580 | M | First Investors Cash Reserve Fund, .22% (cost $4,580,000)** | 4,580,000 | ||||
Total Value of Investments (cost $604,342,173) | 100.3 | % | 683,052,201 | ||||
Excess of Liabilities Over Other Assets | (.3 | ) | (1,879,651) | ||||
Net Assets | 100.0 | % | $681,172,550 |
62 |
* | 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, 2010 (see Note 2). | |||
Summary of Abbreviations: | |||
ADR | American Depositary Receipts | ||
ETF | Exchange Traded Fund | ||
REIT | Real Estate Investment Trust |
Accounting Standards Codification (“ASC”) 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:
Level 1 — | 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 following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2010:
Level 2 | ||||||||||||
Other | Level 3 | |||||||||||
Level 1 | Significant | Significant | ||||||||||
Quoted | Observable | Unobservable | ||||||||||
Prices | Inputs | Inputs | Total | |||||||||
Common Stocks | $ | 678,472,201 | $ | — | $ | — | $ | 678,472,201 | ||||
Money Market Fund | 4,580,000 | — | — | 4,580,000 | ||||||||
Total Investments in Securities* | $ | 683,052,201 | $ | — | $ | — | $ | 683,052,201 |
* | The Portfolio of Investments provides information on the industry categorization for the portfolio. |
See notes to financial statements | 63 |
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 | |
(10/1/09) | (3/31/10) | (10/1/09–3/31/10)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $1,075.06 | $8.85 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,016.40 | $8.60 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $1,071.57 | $12.45 |
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/0000886048-10-000006/equityincomex66x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2010, and are based on the total market value of investments.
64 |
Portfolio of Investments (continued)
GLOBAL FUND
March 31, 2010
Shares | Security | Value | ||
COMMON STOCKS—96.2% | ||||
United States—45.2% | ||||
27,960 | Abbott Laboratories | $ 1,472,933 | ||
10,700 | Accenture, PLC | 448,865 | ||
17,700 | Aflac, Inc. | 960,933 | ||
5,200 | Allegheny Technologies, Inc. | 280,748 | ||
14,500 | * | Alliance Data Systems Corporation | 927,855 | |
25,700 | American Electric Power Company, Inc. | 878,426 | ||
65,550 | Ameriprise Financial, Inc. | 2,973,348 | ||
25,715 | * | Amgen, Inc. | 1,536,728 | |
34,400 | Analog Devices, Inc. | 991,408 | ||
34,650 | Apache Corporation | 3,516,975 | ||
4,050 | * | Apple, Inc. | 951,466 | |
80,290 | Assured Guaranty, Ltd. | 1,763,971 | ||
93,930 | AT&T, Inc. | 2,427,151 | ||
167,335 | Bank of America Corporation | 2,986,930 | ||
6,330 | Boeing Company | 459,621 | ||
15,300 | Buckle, Inc. | 562,428 | ||
53,100 | CBS Corporation – Class “B” | 740,214 | ||
8,100 | * | Cephalon, Inc. | 549,018 | |
9,195 | * | Children’s Place Retail Stores, Inc. | 409,637 | |
153,300 | * | Cisco Systems, Inc. | 3,990,399 | |
7,500 | Coach, Inc. | 296,400 | ||
10,000 | * | Cobalt International Energy, Inc. | 136,000 | |
34,250 | Consol Energy, Inc. | 1,461,105 | ||
70,040 | Corning, Inc. | 1,415,508 | ||
17,590 | Covidien, PLC | 884,425 | ||
16,300 | CVS Caremark Corporation | 595,928 | ||
17,500 | Deere & Company | 1,040,550 | ||
33,100 | * | eBay, Inc. | 892,045 | |
11,320 | Eli Lilly & Company | 410,010 | ||
174,145 | * | EMC Corporation | 3,141,576 | |
7,395 | Emerson Electric Company | 372,264 | ||
56,575 | ExxonMobil Corporation | 3,789,393 | ||
13,600 | Flowserve Corporation | 1,499,672 | ||
81,740 | * | Ford Motor Company | 1,027,472 | |
18,520 | FPL Group, Inc. | 895,072 | ||
179,220 | General Electric Company | 3,261,804 | ||
6,920 | Goldman Sachs Group, Inc. | 1,180,760 | ||
4,220 | * | Google, Inc. – Class “A” | 2,392,782 | |
15,100 | H.J. Heinz Company | 688,711 | ||
22,156 | Halliburton Company | 667,560 |
65 |
Portfolio of Investments (continued)
GLOBAL FUND
March 31, 2010
Shares | Security | Value | ||
United States (continued) | ||||
59,930 | Hartford Financial Services Group, Inc. | $ 1,703,211 | ||
53,375 | Hewlett-Packard Company | 2,836,881 | ||
54,775 | Honeywell International, Inc. | 2,479,664 | ||
14,555 | ngersoll-Rand, PLC | 507,533 | ||
24,700 | Intel Corporation | 549,822 | ||
14,210 | International Business Machines Corporation | 1,822,432 | ||
9,700 | * | ITT Educational Services, Inc. | 1,091,056 | |
32,350 | JPMorgan Chase & Company | 1,447,663 | ||
45,525 | * | Las Vegas Sands Corporation | 962,854 | |
54,945 | Lowe’s Companies, Inc. | 1,331,867 | ||
24,509 | LUKOIL (ADR) | 1,389,660 | ||
15,495 | Martin Marietta Materials, Inc. | 1,294,607 | ||
32,705 | Maxim Integrated Products, Inc. | 634,150 | ||
31,175 | McDonald’s Corporation | 2,079,996 | ||
54,585 | Merck & Company. Inc. | 2,038,750 | ||
7,400 | * | Meru Networks, Inc. | 141,858 | |
116,620 | Microsoft Corporation | 3,413,467 | ||
13,670 | Mosaic Company | 830,726 | ||
25,500 | Noble Corporation | 1,066,410 | ||
17,090 | Noble Energy, Inc. | 1,247,570 | ||
42,390 | Nordstrom, Inc. | 1,731,632 | ||
110,665 | Oracle Corporation | 2,842,984 | ||
54,075 | PepsiCo, Inc. | 3,577,602 | ||
158,579 | Pfizer, Inc. | 2,719,630 | ||
37,895 | Philip Morris International, Inc. | 1,976,603 | ||
19,170 | Precision Castparts Corporation | 2,429,031 | ||
9,000 | * | Primerica Inc. | 135,000 | |
60,840 | Procter & Gamble Company | 3,849,347 | ||
33,025 | QUALCOMM, Inc. | 1,386,720 | ||
4,700 | Range Resources Corporation | 220,289 | ||
7,040 | Rio Tinto, PLC (ADR) | 1,666,579 | ||
18,700 | * | SS&C Technologies Holdings, Inc. | 281,996 | |
42,965 | * | St. Jude Medical, Inc. | 1,763,713 | |
44,630 | Staples, Inc. | 1,043,896 | ||
17,300 | * | Thermo Fisher Scientific, Inc. | 889,912 | |
31,505 | TJX Companies, Inc. | 1,339,593 | ||
5,036 | * | Transocean, Ltd. | 435,010 | |
28,660 | * | Ultra Petroleum Corporation | 1,336,416 | |
28,020 | United Parcel Service, Inc. – Class “B” | 1,804,768 | ||
64,855 | UnitedHealth Group, Inc. | 2,118,813 | ||
52,210 | Wal-Mart Stores, Inc. | 2,902,876 | ||
113,900 | Wells Fargo & Company | 3,544,568 |
66 |
Shares | Security | Value | ||
United States (continued) | ||||
18,200 | * | WESCO International, Inc. | $ 631,722 | |
59,110 | Western Union Company | 1,002,506 | ||
5,700 | * | Whiting Petroleum Corporation | 460,788 | |
125,840,262 | ||||
United Kingdom—13.0% | ||||
29,232 | AstraZeneca, PLC | 1,303,210 | ||
21,200 | AstraZeneca, PLC (ADR) | 948,064 | ||
398,189 | Barclays, PLC | 2,176,256 | ||
187,672 | BG Group, PLC | 3,246,768 | ||
222,825 | BP, PLC | 2,107,110 | ||
516,480 | * | British Airways, PLC | 1,903,778 | |
347,705 | * | GKN, PLC | 727,858 | |
242,707 | HSBC Holdings, PLC | 2,459,321 | ||
115,299 | Imperial Tobacco Group, PLC | 3,515,427 | ||
110,825 | Pearson, PLC | 1,741,622 | ||
136,190 | * | Persimmon, PLC | 961,660 | |
181,382 | Reed Elsevier, PLC | 1,445,850 | ||
288,910 | Rexam, PLC | 1,283,626 | ||
55,998 | Rio Tinto, PLC | 3,317,035 | ||
70,532 | Standard Chartered, PLC | 1,923,143 | ||
199,069 | Thomas Cook Group, PLC | 814,708 | ||
35,642 | * | Wolseley, PLC | 860,719 | |
238,320 | WPP, PLC | 2,469,094 | ||
155,624 | * | Xstrata, PLC | 2,947,281 | |
36,152,530 | ||||
Japan—7.9% | ||||
81,800 | Bridgestone Corporation | 1,397,183 | ||
13,000 | Daito Trust Construction Co., Ltd. | 627,461 | ||
21,300 | Eisai Company, Ltd. | 760,226 | ||
290,000 | Hino Motors, Ltd. | 1,225,920 | ||
350 | Japan Tobacco, Inc. | 1,303,510 | ||
357 | KDDI Corporation | 1,849,187 | ||
94,000 | Konica Minolta Holdings, Inc. | 1,097,539 | ||
577,900 | Mitsubishi UFJ Financial Group, Inc. | 3,030,512 | ||
264,000 | Mitsui O.S.K. Lines, Ltd. | 1,895,805 | ||
63,000 | Nikon Corporation | 1,376,102 | ||
14,300 | OSAKA Titanium Technologies Company, Ltd. | 593,028 | ||
63,000 | Sekisui House, Ltd. | 629,730 | ||
39,000 | Softbank Corporation | 961,226 |
67 |
Portfolio of Investments (continued)
GLOBAL FUND
March 31, 2010
Shares | Security | Value | ||
Japan (continued) | ||||
589,000 | Sumitomo Metal Industries, Ltd. | $ 1,783,893 | ||
42,000 | Sumitomo Mitsui Financial Group, Inc. | 1,388,913 | ||
57,950 | T&D Holdings, Inc. | 1,372,467 | ||
27,300 | TOHO Titanium Company, Ltd. | 676,364 | ||
21,969,066 | ||||
Switzerland—7.9% | ||||
34,845 | ABB, Ltd. (ADR) | 761,015 | ||
46,630 | Compagnie Financiere Richemont SA | 1,808,848 | ||
43,589 | Julius Baer Group, Ltd. | 1,584,038 | ||
16,384 | Kuehne & Nagel International AG | 1,660,893 | ||
44,923 | Nestle SA – Registered | 2,304,729 | ||
22,648 | Roche Holding AG – Genusscheine | 3,679,453 | ||
922 | SGS SA-Registered | 1,273,657 | ||
9,879 | Synthes, Inc. | 1,235,168 | ||
132,175 | * | UBS AG – Registered | 2,151,809 | |
333,000 | * | UBS AG – Registered | 5,422,659 | |
21,882,269 | ||||
Hong Kong—3.3% | ||||
387,000 | * | Cathay Pacific Airways, Ltd. | 815,398 | |
250,027 | Esprit Holdings, Ltd. | 1,972,279 | ||
457,000 | Hang Lung Properties, Ltd. | 1,842,196 | ||
1,372,000 | Lenovo Group, Ltd. | 947,096 | ||
400,888 | Shangri-La Asia, Ltd. | 786,834 | ||
183,000 | Sun Hung Kai Properties, Ltd. | 2,752,766 | ||
9,116,569 | ||||
France—3.0% | ||||
351,342 | * | Alcatel-Lucent | 1,112,919 | |
11,876 | BNP Paribas | 913,712 | ||
44,759 | Danone SA | 2,701,141 | ||
46,347 | Safran SA | 1,210,350 | ||
20,072 | Schneider Electric SA | 2,358,536 | ||
8,296,658 |
68 |
Shares | Security | Value | ||
Germany—2.8% | ||||
4,404 | * | Continental AG | $ 225,790 | |
60,377 | Daimler AG | 2,853,251 | ||
27,505 | Deutsche Post AG | 476,752 | ||
24,948 | HeidelbergCement AG | 1,399,916 | ||
27,307 | SAP AG | 1,323,708 | ||
16,125 | Siemens AG | 1,620,049 | ||
7,899,466 | ||||
China—2.1% | ||||
399,000 | China Life Insurance Company, Ltd. | 1,911,574 | ||
408,495 | China Merchants Bank Company, Ltd. | 1,104,794 | ||
994,000 | Industrial and Commercial Bank of China, Ltd. | 757,850 | ||
4,300 | * | NetEase.com, Inc. (ADR) | 152,521 | |
3,300 | * | Perfect World Company, Ltd. (ADR) | 123,585 | |
14,400 | PetroChina Company, Ltd. (ADR) | 1,687,968 | ||
5,738,292 | ||||
Canada—1.7% | ||||
9,700 | Agrium, Inc. | 685,111 | ||
27,635 | Barrick Gold Corporation | 1,059,526 | ||
25,700 | Potash Corporation of Saskatchewan, Inc. | 3,072,196 | ||
4,816,833 | ||||
Sweden—1.5% | ||||
173,242 | Atlas Copco AB | 2,695,999 | ||
143,486 | Volvo AB – “B” Shares | 1,448,417 | ||
4,144,416 | ||||
Israel—1.1% | ||||
50,600 | Teva Pharmaceutical Industries, Ltd. (ADR) | 3,191,848 | ||
Ireland—1.1% | ||||
100,434 | CRH PLC | 2,511,394 | ||
15,800 | * | Ryanair Holdings PLC (ADR) | 429,286 | |
2,940,680 |
69 |
Portfolio of Investments (continued)
GLOBAL FUND
March 31, 2010
Shares | Security | Value | ||
South Africa—.8% | ||||
77,646 | Impala Platinum Holdings, Ltd. | $ 2,262,576 | ||
Italy—.7% | ||||
406,125 | Snam Rete Gas SpA | 2,062,113 | ||
Turkey—.7% | ||||
438,664 | Turkiye Garanti Bankasi AS | 2,046,061 | ||
Spain—.6% | ||||
32,353 | Red Electrica Corporacion SA | 1,739,482 | ||
Taiwan—.6% | ||||
182,289 | Hon Hai Precision Industry Co., Ltd. – Registered (GDR) | 1,658,830 | ||
741 | HTC Corporation | 34,626 | ||
1,693,456 | ||||
Mexico—.6% | ||||
32,600 | America Movil SA de CV (ADR) – Series “L” | 1,641,084 | ||
Netherlands—.6% | ||||
103,274 | Koninklijke (Royal) KPN NV | 1,639,159 | ||
Denmark—.5% | ||||
77,767 | DSV A/S | 1,392,255 | ||
Panama—.2% | ||||
11,200 | Copa Holdings SA – Class “A” | 680,960 | ||
Norway—.2% | ||||
19,700 | Frontline, Ltd. | 603,411 | ||
Malaysia—.1% | ||||
487,600 | * | Airasia Berhad | 207,776 | |
Total Value of Common Stocks (cost $216,955,317) | 267,957,222 | |||
PREFERRED STOCKS—.9% | ||||
Brazil | ||||
115,982 | Itau Unibanco Holdings SA (ADR) (cost $2,181,851) | 2,550,444 |
70 |
Principal | |||||||
Amount | Security | Value | |||||
SHORT-TERM INVESTMENTS—3.0% | |||||||
United States | |||||||
$ 8,240 | M | First Investors Cash Reserve Fund, .22% (cost $8,240,000)** | $ 8,240,000 | ||||
Total Value of Investments (cost $227,377,168) | 100.1 | % | 278,747,666 | ||||
Excess of Liabilities Over Other Assets | (.1 | ) | (305,470) | ||||
Net Assets | 100.0 | % | $278,442,196 |
* | 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, 2010 (see Note 2). | |||
Summary of Abbreviations: | |||
ADR | American Depositary Receipts | ||
GDR | Global Depositary Receipts |
Accounting Standards Codification (“ASC”) 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:
Level 1 — | 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 following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2010:
Level 2 | ||||||||||||
Other | Level 3 | |||||||||||
Level 1 | Significant | Significant | ||||||||||
Quoted | Observable | Unobservable | ||||||||||
Prices | Inputs | Inputs | Total | |||||||||
Common Stocks | $ | $267,957,222 | $ | — | $ | — | $ | $267,957,222 | ||||
Preferred Stocks | 2,550,444 | — | — | 2,550,444 | ||||||||
Money Market Fund | 8,240,000 | — | — | 8,240,000 | ||||||||
Total Investments in Securities* | $ | $278,747,666 | $ | — | $ | — | $ | $278,747,666 |
* | The Portfolio of Investments provides information on the country categorization for the portfolio. |
See notes to financial statements | 71 |
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 | |
(10/1/09) | (3/31/10) | (10/1/09–3/31/10)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $1,086.30 | $8.17 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,017.10 | $7.90 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $1,083.00 | $11.79 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,013.61 | $11.40 |
* | Expenses are equal to the annualized expense ratio of 1.57% for Class A shares and 2.27% 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/0000886048-10-000006/equityincomex74x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2010, and are based on the total market value of investments.
72 |
Portfolio of Investments
SELECT GROWTH FUND
March 31, 2010
Shares | Security | Value | ||
COMMON STOCKS—99.0% | ||||
Consumer Discretionary—13.8% | ||||
114,400 | * | Bed Bath & Beyond, Inc. | $ 5,006,144 | |
207,200 | Mattel, Inc. | 4,711,728 | ||
62,500 | McDonald’s Corporation | 4,170,000 | ||
109,000 | Ross Stores, Inc. | 5,828,230 | ||
35,300 | Whirlpool Corporation | 3,079,925 | ||
97,000 | * | WMS Industries, Inc. | 4,068,180 | |
26,864,207 | ||||
Consumer Staples—13.3% | ||||
78,200 | Brown-Forman Corporation – Class “B” | 4,648,990 | ||
81,500 | Church & Dwight Company, Inc. | 5,456,425 | ||
66,780 | Colgate-Palmolive Company | 5,693,663 | ||
64,600 | Wal-Mart Stores, Inc. | 3,591,760 | ||
178,300 | * | Whole Foods Market, Inc. | 6,445,545 | |
25,836,383 | ||||
Energy—4.9% | ||||
41,500 | ExxonMobil Corporation | 2,779,670 | ||
102,600 | Helmerich & Payne, Inc. | 3,907,008 | ||
54,400 | * | Newfield Exploration Company | 2,831,520 | |
9,518,198 | ||||
Financials—9.7% | ||||
125,300 | American Express Company | 5,169,878 | ||
113,000 | Capital One Financial Corporation | 4,679,330 | ||
28,900 | Franklin Resources, Inc. | 3,205,010 | ||
98,300 | PNC Financial Services Group, Inc. | 5,868,510 | ||
18,922,728 | ||||
Health Care—11.6% | ||||
59,400 | Abbott Laboratories | 3,129,192 | ||
125,300 | Bristol-Myers Squibb Company | 3,345,510 | ||
60,600 | * | Express Scripts, Inc. | 6,166,656 | |
72,800 | McKesson Corporation | 4,784,416 | ||
119,200 | * | Valeant Pharmaceuticals International | 5,114,872 | |
22,540,646 |
73 |
Portfolio of Investments (continued)
SELECT GROWTH FUND
March 31, 2010
Shares or | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Industrials—9.1% | |||||||
63,300 | Eaton Corporation | $ 4,796,241 | |||||
102,800 | Illinois Tool Works, Inc. | 4,868,608 | |||||
83,700 | Manpower, Inc. | 4,780,944 | |||||
81,852 | * | Thomas & Betts Corporation | 3,211,872 | ||||
17,657,665 | |||||||
Information Technology—31.7% | |||||||
31,400 | * | Apple, Inc. | 7,376,802 | ||||
163,800 | * | BMC Software, Inc. | 6,224,400 | ||||
186,600 | * | Cisco Systems, Inc. | 4,857,198 | ||||
86,000 | Hewlett-Packard Company | 4,570,900 | |||||
275,200 | Intel Corporation | 6,125,952 | |||||
43,200 | International Business Machines Corporation | 5,540,400 | |||||
137,700 | Lender Processing Services, Inc. | 5,198,175 | |||||
166,135 | * | McAfee, Inc. | 6,666,998 | ||||
228,380 | * | Red Hat, Inc. | 6,684,683 | ||||
149,500 | * | SAIC, Inc. | 2,646,150 | ||||
144,200 | * | Western Digital Corporation | 5,622,358 | ||||
61,514,016 | |||||||
Materials—4.9% | |||||||
79,100 | Freeport-McMoRan Copper & Gold, Inc. | 6,608,014 | |||||
116,400 | * | Pactiv Corporation | 2,930,952 | ||||
9,538,966 | |||||||
Total Value of Common Stocks (cost $161,182,440) | 192,392,809 | ||||||
SHORT-TERM INVESTMENTS—1.2% | |||||||
Money Market Fund | |||||||
$ 2,375 | M | First Investors Cash Reserve Fund, .22% (cost $2,375,000)** | 2,375,000 | ||||
Total Value of Investments (cost $163,557,440) | 100.2 | % | 194,767,809 | ||||
Excess of Liabilities Over Other Assets | (.2 | ) | (362,800) | ||||
Net Assets | 100.0 | % | $194,405,009 |
* | 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, 2010 (see Note 2). |
74 |
Accounting Standards Codification (“ASC”) 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes (see Note 1A). The three-tier hierarchy of inputs is summarized in the three broad Levels listed 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 unobservab le 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 following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2010:
Level 2 | ||||||||||||
Other | Level 3 | |||||||||||
Level 1 | Significant | Significant | ||||||||||
Quoted | Observable | Unobservable | ||||||||||
Prices | Inputs | Inputs | Total | |||||||||
Common Stocks | $ | 192,392,809 | $ | — | $ | — | $ | 192,392,809 | ||||
Money Market Fund | 2,375,000 | — | — | 2,375,000 | ||||||||
Total Investments in Securities* | $ | 194,767,809 | $ | — | $ | — | $ | 194,767,809 |
* The Portfolio of Investments provides information on the industry categorization for the portfolio. |
See notes to financial statements | 75 |
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 | |
(10/1/09) | (3/31/10) | (10/1/09–3/31/10)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $1,134.89 | $7.66 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,017.75 | $7.24 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $1,131.25 | $11.37 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,014.26 | $10.75 |
* | Expenses are equal to the annualized expense ratio of 1.44% for Class A shares and 2.14% 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/0000886048-10-000006/equityincomex78x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2010, and are based on the total market value of investments.
76 |
Portfolio of Investments (continued)
OPPORTUNITY FUND
March 31, 2010
Shares | Security | Value | ||
COMMON STOCKS—99.7% | ||||
Consumer Discretionary—18.3% | ||||
100,000 | American Greetings Corporation – Class “A” | $ 2,084,000 | ||
105,000 | * | Big Lots, Inc. | 3,824,100 | |
60,000 | * | BorgWarner, Inc. | 2,290,800 | |
159,000 | Cinemark Holdings, Inc. | 2,916,060 | ||
142,500 | Coach, Inc. | 5,631,600 | ||
250,000 | * | Corinthian Colleges, Inc. | 4,397,500 | |
90,000 | * | Dreamworks Animation SKG, Inc. – Class “A” | 3,545,100 | |
180,000 | * | GameStop Corporation – Class “A” | 3,943,800 | |
123,800 | H&R Block, Inc. | 2,203,640 | ||
110,000 | * | Jack in the Box, Inc. | 2,590,500 | |
90,000 | Limited Brands, Inc. | 2,215,800 | ||
177,000 | * | Lincoln Educational Services Corporation | 4,478,100 | |
295,000 | * | Morgans Hotel Group Company | 1,890,950 | |
50,000 | Nordstrom, Inc. | 2,042,500 | ||
45,000 | Polo Ralph Lauren Corporation – Class “A” | 3,826,800 | ||
260,000 | * | Ruby Tuesday, Inc. | 2,748,200 | |
617,200 | Stewart Enterprises, Inc. – Class “A” | 3,857,500 | ||
155,000 | * | Tempur-Pedic International, Inc. | 4,674,800 | |
120,000 | Tiffany & Company | 5,698,800 | ||
137,500 | * | TRW Automotive Holdings Corporation | 3,929,750 | |
100,000 | Tupperware Brands Corporation | 4,822,000 | ||
95,000 | * | Warnaco Group, Inc. | 4,532,450 | |
78,144,750 | ||||
Consumer Staples—4.4% | ||||
50,000 | * | Dole Food Company, Inc. | 592,500 | |
70,000 | McCormick & Company, Inc. | 2,685,200 | ||
145,000 | Nu Skin Enterprises, Inc. – Class “A” | 4,219,500 | ||
20,000 | Philip Morris International, Inc. | 1,043,200 | ||
115,000 | Safeway, Inc. | 2,858,900 | ||
425,000 | Sara Lee Corporation | 5,920,250 | ||
63,519 | Tootsie Roll Industries, Inc. | 1,716,920 | ||
19,036,470 | ||||
Energy—6.8% | ||||
182,000 | * | Cal Dive International, Inc. | 1,334,060 | |
37,500 | * | Dril-Quip, Inc. | 2,281,500 | |
40,000 | EOG Resources, Inc. | 3,717,600 | ||
43,000 | Hess Corporation | 2,689,650 |
77 |
Portfolio of Investments (continued)
OPPORTUNITY FUND
March 31, 2010
Shares | Security | Value | ||
Energy (continued) | ||||
110,000 | National-Oilwell Varco, Inc. | $ 4,463,800 | ||
110,000 | * | Plains Exploration & Production Company | 3,298,900 | |
225,000 | Talisman Energy, Inc. | 3,838,500 | ||
52,500 | * | Transocean, Ltd. | 4,534,950 | |
190,000 | * | Weatherford International, Ltd. | 3,013,400 | |
29,172,360 | ||||
Financials—15.6% | ||||
145,000 | Ameriprise Financial, Inc. | 6,577,200 | ||
75,000 | City National Corporation | 4,047,750 | ||
130,000 | Discover Financial Services | 1,937,000 | ||
150,000 | Douglas Emmett, Inc. (REIT) | 2,305,500 | ||
32,500 | Federal Realty Investment Trust (REIT) | 2,366,325 | ||
400,000 | Financial Select Sector SPDR Fund (ETF) | 6,388,000 | ||
28,100 | FirstMerit Corporation | 606,117 | ||
225,000 | Hudson City Bancorp, Inc. | 3,186,000 | ||
56,800 | IBERIABANK Corporation | 3,408,568 | ||
185,000 | Lazard, Ltd. – Class “A” | 6,604,500 | ||
210,000 | * | Nasdaq OMX Group, Inc. | 4,435,200 | |
190,000 | New York Community Bancorp, Inc. | 3,142,600 | ||
235,000 | NewAlliance Bancshares, Inc. | 2,965,700 | ||
170,000 | Protective Life Corporation | 3,738,300 | ||
185,000 | SPDR KBW Regional Banking (ETF) | 4,850,700 | ||
268,905 | * | Sunstone Hotel Investors, Inc. (REIT) | 3,003,669 | |
195,000 | Waddell & Reed Financial, Inc. – Class “A” | 7,027,800 | ||
66,590,929 | ||||
Health Care—14.6% | ||||
72,500 | Beckman Coulter, Inc. | 4,553,000 | ||
40,000 | * | Cephalon, Inc. | 2,711,200 | |
41,300 | * | Cubist Pharmaceutical, Inc. | 930,902 | |
75,000 | DENTSPLY International, Inc. | 2,613,750 | ||
62,500 | * | Gilead Sciences, Inc. | 2,842,500 | |
60,000 | * | Hologic, Inc. | 1,112,400 | |
50,000 | * | inVentiv Health, Inc. | 1,123,000 | |
300,000 | * | King Pharmaceuticals, Inc. | 3,528,000 | |
67,500 | * | Laboratory Corporation of America Holdings | 5,110,425 | |
67,500 | McKesson Corporation | 4,436,100 | ||
65,000 | * | Mettler-Toledo International, Inc. | 7,098,000 | |
40,000 | Perrigo Company | 2,348,800 | ||
140,000 | * | PSS World Medical, Inc. | 3,291,400 |
78 |
Shares | Security | Value | ||
Health Care (continued) | ||||
148,600 | * | Sirona Dental Systems, Inc. | $ 5,651,258 | |
55,000 | * | St. Jude Medical, Inc. | 2,257,750 | |
95,000 | * | Thermo Fisher Scientific, Inc. | 4,886,800 | |
310,000 | * | Warner Chilcott, PLC – Class “A” | 7,920,500 | |
62,415,785 | ||||
Industrials—12.7% | ||||
75,000 | A.O. Smith Corporation | 3,942,750 | ||
108,000 | * | AAR Corporation | 2,680,560 | |
5,000 | Aegean Marine Petroleum Network, Inc. | 141,900 | ||
155,000 | * | Argon ST, Inc. | 4,124,550 | |
125,000 | * | Armstrong World Industries, Inc. | 4,538,750 | |
159,500 | Baldor Electric Company | 5,965,300 | ||
140,000 | * | Chicago Bridge & Iron Company NV – NY Shares | 3,256,400 | |
100,000 | * | Esterline Technologies Corporation | 4,943,000 | |
95,000 | * | Generac Holdings, Inc. | 1,330,950 | |
43,000 | Harsco Corporation | 1,373,420 | ||
160,000 | IDEX Corporation | 5,296,000 | ||
82,500 | J.B. Hunt Transport Services, Inc. | 2,960,100 | ||
85,000 | * | Mistras Group, Inc. | 849,150 | |
220,000 | * | Mobile Mini, Inc. | 3,407,800 | |
140,000 | Republic Services, Inc. | 4,062,800 | ||
75,000 | Rolls-Royce Group, PLC (ADR) | 3,357,000 | ||
40,000 | Roper Industries, Inc. | 2,313,600 | ||
54,544,030 | ||||
Information Technology—14.4% | ||||
200,000 | * | Avago Technologies, Ltd. | 4,112,000 | |
405,000 | * | Brocade Communications Systems, Inc. | 2,312,550 | |
65,000 | * | CACI International, Inc. – Class “A” | 3,175,250 | |
20,000 | * | Echo Global Logistics, Inc. | 258,200 | |
140,000 | * | FEI Company | 3,207,400 | |
85,000 | * | Fiserv, Inc. | 4,314,600 | |
209,300 | * | Genpact, Ltd. | 3,507,868 | |
50,000 | Harris Corporation | 2,374,500 | ||
230,000 | Intersil Corporation – Class “A” | 3,394,800 | ||
75,000 | * | Intuit, Inc. | 2,575,500 | |
175,000 | * | JDS Uniphase Corporation | 2,192,750 | |
290,000 | National Semiconductor Corporation | 4,190,500 | ||
183,700 | * | SRA International, Inc. – Class “A” | 3,819,123 | |
90,000 | * | Sybase, Inc. | 4,195,800 |
79 |
Portfolio of Investments (continued)
OPPORTUNITY FUND
March 31, 2010
Shares or | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Information Technology (continued) | |||||||
297,725 | Symantec Corporation | $ 5,037,507 | |||||
250,000 | Technology Select Sector SPDR Fund (ETF) | 5,772,500 | |||||
170,000 | Tyco Electronics, Ltd. | 4,671,600 | |||||
60,000 | Western Digital Corporation | 2,339,400 | |||||
61,451,848 | |||||||
Materials—7.4% | |||||||
110,000 | Agrium, Inc. | 7,769,300 | |||||
50,000 | Allegheny Technologies, Inc. | 2,699,500 | |||||
125,000 | Bemis Company, Inc. | 3,590,000 | |||||
50,000 | Freeport-McMoRan Copper & Gold, Inc. | 4,177,000 | |||||
275,000 | * | Globe Specialty Metals, Inc. | 3,077,250 | ||||
145,000 | Olin Corporation | 2,844,900 | |||||
40,000 | Praxair, Inc. | 3,320,000 | |||||
80,000 | Sigma-Aldrich Corporation | 4,292,800 | |||||
31,770,750 | |||||||
Telecommunication Services—.9% | |||||||
220,000 | NTELOS Holdings Corporation | 3,913,800 | |||||
Utilities—4.6% | |||||||
111,000 | AGL Resources, Inc. | 4,290,150 | |||||
90,000 | EQT Corporation | 3,690,000 | |||||
110,000 | Portland General Electric Company | 2,124,100 | |||||
125,000 | SCANA Corporation | 4,698,750 | |||||
100,000 | Wisconsin Energy Corporation | 4,941,000 | |||||
19,744,000 | |||||||
Total Value of Common Stocks (cost $364,494,995) | 426,784,722 | ||||||
SHORT-TERM INVESTMENTS—.2% | |||||||
Money Market Fund | |||||||
$1,030 | M | First Investors Cash Reserve Fund, .22% (cost $1,030,000)** | 1,030,000 | ||||
Total Value of Investments (cost $365,524,995) | 99.9 | % | 427,814,722 | ||||
Other Assets, Less Liabilities | .1 | 265,684 | |||||
Net Assets | 100.0 | % | $428,080,406 |
80 |
* | 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, 2010 (see Note 2). | |||
Summary of Abbreviations: | |||
ADR | American Depositary Receipts | ||
ETF | Exchange Traded Fund | ||
REIT | Real Estate Investment Trust |
Accounting Standards Codification (“ASC”) 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:
Level 1 — | 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 following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2010:
Level 2 | ||||||||||||
Other | Level 3 | |||||||||||
Level 1 | Significant | Significant | ||||||||||
Quoted | Observable | Unobservable | ||||||||||
Prices | Inputs | Inputs | Total | |||||||||
Common Stocks | $ | 426,784,722 | $ | — | $ | — | $ | 426,784,722 | ||||
Money Market Fund | 1,030,000 | — | — | 1,030,000 | ||||||||
Total Investments in Securities* | $ | 427,814,722 | $ | — | $ | — | $ | 427,814,722 |
* The Portfolio of Investments provides information on the industry categorization for the portfolio. |
See notes to financial statements | 81 |
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 | |
(10/1/09) | (3/31/10) | (10/1/09–3/31/10)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $1,119.57 | $8.09 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,017.30 | $7.70 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $1,116.21 | $11.77 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,013.81 | $11.20 |
* | Expenses are equal to the annualized expense ratio of 1.53% for Class A shares and 2.23% 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/0000886048-10-000006/equityincomex84x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2010, and are based on the total market value of investments.
82 |
Portfolio of Investments
SPECIAL SITUATIONS FUND
March 31, 2010
Shares | Security | Value | ||
COMMON STOCKS—95.5% | ||||
Consumer Discretionary—10.5% | ||||
226,100 | American Eagle Outfitters, Inc. | $ 4,187,372 | ||
113,100 | * | Big Lots, Inc. | 4,119,102 | |
134,300 | * | Career Education Corporation | 4,249,252 | |
198,600 | Foot Locker, Inc. | 2,986,944 | ||
106,800 | Hasbro, Inc. | 4,088,304 | ||
101,500 | Phillips Van-Heusen Corporation | 5,822,040 | ||
246,800 | Regal Entertainment Group – Class “A” | 4,336,276 | ||
29,789,290 | ||||
Consumer Staples—10.4% | ||||
117,000 | * | American Italian Pasta Company – Class “A” | 4,547,790 | |
62,250 | Church & Dwight Company, Inc. | 4,167,638 | ||
123,000 | Corn Products International, Inc. | 4,263,180 | ||
442,500 | * | Dole Food Company, Inc. | 5,243,625 | |
142,000 | Flowers Foods, Inc. | 3,513,080 | ||
171,800 | * | Fresh Del Monte Produce, Inc. | 3,478,950 | |
72,400 | J. M. Smucker Company | 4,362,824 | ||
29,577,087 | ||||
Energy—7.4% | ||||
218,498 | EXCO Resources, Inc. | 4,015,993 | ||
254,612 | * | Matrix Service Company | 2,739,625 | |
115,300 | * | Plains Exploration & Production Company | 3,457,847 | |
359,600 | * | Resolute Energy Corporation | 4,354,756 | |
101,400 | St. Mary Land & Exploration Company | 3,529,734 | ||
35,700 | * | Whiting Petroleum Corporation | 2,885,988 | |
20,983,943 | ||||
Financials—14.6% | ||||
14,592 | * | Alleghany Corporation | 4,271,259 | |
107,700 | American Financial Group, Inc. | 3,064,065 | ||
290,700 | Anworth Mortgage Asset Corporation (REIT) | 1,959,318 | ||
32,400 | Everest Re Group, Ltd. | 2,622,132 | ||
199,200 | * | EZCORP, Inc. – Class “A” | 4,103,520 | |
112,900 | Harleysville Group, Inc. | 3,811,504 | ||
250,400 | * | Hilltop Holdings, Inc. | 2,942,200 | |
73,000 | Invesco Mortgage Capital, Inc. | 1,679,000 | ||
193,200 | * | Jefferies Group, Inc. | 4,573,044 | |
7,000 | * | Markel Corporation | 2,622,620 |
83 |
Portfolio of Investments (continued)
SPECIAL SITUATIONS FUND
March 31, 2010
Shares | ecurity | Value | ||
Financials (continued) | ||||
403,100 | MFA Financial, Inc. (REIT) | $ 2,966,816 | ||
9,752 | National Western Life Insurance Company – Class “A” | 1,797,781 | ||
92,600 | * | Piper Jaffray Companies, Inc. | 3,731,780 | |
88,200 | Walter Investment Management Corporation (REIT) | 1,411,200 | ||
41,556,239 | ||||
Health Care—11.5% | ||||
132,700 | * | AMERIGROUP Corporation | 4,410,948 | |
252,300 | * | Endo Pharmaceuticals Holdings, Inc. | 5,976,987 | |
101,100 | * | Life Technologies Corporation | 5,284,497 | |
94,400 | * | Lincare Holdings, Inc. | 4,236,672 | |
96,400 | * | Magellan Health Services, Inc. | 4,191,472 | |
73,500 | * | MEDNAX, Inc. | 4,276,965 | |
174,900 | PerkinElmer, Inc. | 4,180,110 | ||
32,557,651 | ||||
Industrials—9.9% | ||||
43,200 | * | Alliant Techsystems, Inc. | 3,512,160 | |
172,800 | * | Chart Industries, Inc. | 3,456,000 | |
75,200 | Curtiss-Wright Corporation | 2,616,960 | ||
237,600 | * | DXP Enterprises, Inc. | 3,034,152 | |
171,700 | * | EMCOR Group, Inc. | 4,228,971 | |
109,400 | * | FTI Consulting, Inc. | 4,301,608 | |
36,500 | Precision Castparts Corporation | 4,624,915 | ||
90,800 | Robbins & Myers, Inc. | 2,162,856 | ||
27,937,622 | ||||
Information Technology—17.3% | ||||
630,400 | * | Brightpoint, Inc. | 4,746,912 | |
718,200 | * | Compuware Corporation | 6,032,880 | |
360,700 | * | Convergys Corporation | 4,422,182 | |
319,000 | EarthLink, Inc. | 2,724,260 | ||
143,500 | Fair Isaac Corporation | 3,636,290 | ||
394,100 | * | Lawson Software, Inc. | 2,605,001 | |
119,800 | * | MICROS Systems, Inc. | 3,939,024 | |
215,700 | * | QLogic Corporation | 4,378,710 | |
88,700 | * | Sybase, Inc. | 4,135,194 |
84 |
Shares or | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Information Technology (continued) | |||||||
185,100 | * | TNS, Inc. | $ 4,127,730 | ||||
424,200 | * | Verigy, Ltd. | 4,742,556 | ||||
361,000 | * | Vishay Intertechnology, Inc. | 3,693,030 | ||||
49,183,769 | |||||||
Materials—9.6% | |||||||
66,500 | AptarGroup, Inc. | 2,616,775 | |||||
56,200 | Compass Minerals International, Inc. | 4,508,926 | |||||
272,024 | Innospec, Inc. | 3,090,193 | |||||
180,700 | Olin Corporation | 3,545,334 | |||||
83,500 | Schnitzer Steel Industries, Inc. – Class “A” | 4,386,255 | |||||
164,500 | Sensient Technologies Corporation | 4,780,370 | |||||
71,200 | Silgan Holdings, Inc. | 4,288,376 | |||||
27,216,229 | |||||||
Telecommunication Services—3.0% | |||||||
158,800 | * | Iridium Communications, Inc. | 1,287,868 | ||||
546,400 | * | Premiere Global Services, Inc. | 4,513,264 | ||||
92,975 | Telephone & Data Systems, Inc. – Special Shares | 2,774,374 | |||||
8,575,506 | |||||||
Utilities—1.3% | |||||||
160,900 | CMS Energy Corporation | 2,487,514 | |||||
116,400 | * | Mirant Corporation | 1,264,104 | ||||
3,751,618 | |||||||
Total Value of Common Stocks (cost $217,636,910) | 271,128,954 | ||||||
SHORT-TERM INVESTMENTS—4.4% | |||||||
Money Market Fund | |||||||
$ 12,600 | M | First Investors Cash Reserve Fund, .22% (cost $12,600,000)** | 12,600,000 | ||||
Total Value of Investments (cost $230,236,910) | 99.9 | % | 283,728,954 | ||||
Other Assets, Less Liabilities | .1 | 294,704 | |||||
Net Assets | 100.0 | % | $284,023,658 |
85 |
Portfolio of Investments (continued)
SPECIAL SITUATIONS FUND
March 31, 2010
* | 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, 2010 (see Note 2). | ||
Summary of Abbreviations: | ||
REIT Real Estate Investment Trust |
Accounting Standards Codification (“ASC”) 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:
Level 1 — | 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 following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2010:
Level 2 | ||||||||||||
Other | Level 3 | |||||||||||
Level 1 | Significant | Significant | ||||||||||
Quoted | Observable | Unobservable | ||||||||||
Prices | Inputs | Inputs | Total | |||||||||
Common Stocks | $ | 271,128,954 | $ | — | $ | — | $ | $271,128,954 | ||||
Money Market Fund | 12,600,000 | — | — | 12,600,000 | ||||||||
Total Investments in Securities* | $ | 283,728,954 | $ | — | $ | — | $ | $283,728,954 |
* | The Portfolio of Investments provides information on the industry categorization for the portfolio. |
86 | See notes to financial statements |
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 | |
(10/1/09) | (3/31/10) | (10/1/09–3/31/10)* | |
Expense Example – Class A Shares | |||
Actual | $1,000.00 | $1,083.28 | $10.34 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,015.01 | $10.00 |
Expense Example – Class B Shares | |||
Actual | $1,000.00 | $1,080.37 | $13.95 |
Hypothetical | |||
(5% annual return before expenses) | $1,000.00 | $1,011.52 | $13.49 |
* | Expenses are equal to the annualized expense ratio of 1.99% for Class A shares and 2.69% 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 SECTORS
![](https://capedge.com/proxy/N-CSRS/0000886048-10-000006/equityincomex89x1.jpg)
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2010, and are based on the total market value of investments.
87 |
Portfolio of Investments (continued)
INTERNATIONAL FUND
March 31, 2010
Shares | Security | Value | ||
COMMON STOCKS—95.9% | ||||
United Kingdom—23.7% | ||||
275,417 | Amlin, PLC | $ 1,621,403 | ||
48,635 | BG Group, PLC | 841,396 | ||
184,530 | British American Tobacco, PLC | 6,358,229 | ||
187,815 | Capita Group, PLC | 2,155,240 | ||
95,375 | De La Rue, PLC | 1,340,406 | ||
152,062 | Diageo, PLC | 2,551,128 | ||
174,344 | G4S, PLC | 691,568 | ||
174,671 | Imperial Tobacco Group, PLC | 5,325,659 | ||
70,948 | Reckitt Benckiser Group, PLC | 3,892,648 | ||
74,526 | Scottish and Southern Energy, PLC | 1,244,662 | ||
582,926 | Tesco, PLC | 3,850,421 | ||
29,872,760 | ||||
India—15.6% | ||||
31,057 | Bharat Heavy Electricals, Ltd. | 1,653,779 | ||
219,255 | Cipla, Ltd. | 1,652,410 | ||
149,800 | HDFC Bank, Ltd. | 6,451,460 | ||
30,814 | Hero Honda Motors, Ltd. | 1,334,553 | ||
82,456 | Housing Development Finance Corporation, Ltd. | 4,990,521 | ||
439,631 | ITC, Ltd. | 2,575,898 | ||
15,562 | Nestle India, Ltd. | 927,637 | ||
19,586,258 | ||||
Switzerland—12.6% | ||||
269 | Lindt & Spruengli AG | 637,647 | ||
99,920 | Nestle SA – Registered | 5,126,293 | ||
58,693 | Novartis AG – Registered | 3,175,684 | ||
28,200 | Roche Holding AG – Genusscheine | 4,581,445 | ||
18,441 | Synthes, Inc. | 2,305,673 | ||
15,826,742 | ||||
Brazil—5.6% | ||||
71,429 | CETIP SA – Balcao Organizado de Ativos e Derivatos | 582,334 | ||
160,000 | Cielo SA | 1,514,204 | ||
56,600 | CPFL Energia SA | 1,131,873 | ||
99,700 | Redecard SA | 1,837,917 | ||
58,130 | Souza Cruz SA | 2,025,284 | ||
7,091,612 |
88 |
Shares | Security | Value | ||
Australia—5.3% | ||||
98,963 | Coca-Cola Amatil, Ltd. | $ 1,021,876 | ||
117,317 | QBE Insurance Group, Ltd. | 2,242,968 | ||
133,758 | Woolworths, Ltd. | 3,437,562 | ||
6,702,406 | ||||
United States—4.8% | ||||
116,007 | Philip Morris International, Inc. | 6,050,925 | ||
Canada—4.2% | ||||
29,012 | Canadian Natural Resources, Ltd. | 2,150,414 | ||
46,485 | Power Corporation of Canada | 1,404,790 | ||
40,899 | Shoppers Drug Mart Corporation | 1,762,057 | ||
5,317,261 | ||||
Spain—4.2% | ||||
142,861 | Enagas | 3,136,393 | ||
39,573 | Red Electrica Corporacion SA | 2,127,670 | ||
5,264,063 | ||||
France—3.7% | ||||
35,058 | Essilor International SA | 2,242,357 | ||
41,890 | Total SA | 2,436,177 | ||
4,678,534 | ||||
Denmark—3.7% | ||||
59,689 | Novo Nordisk A/S – Series “B” | 4,640,031 | ||
Germany—2.7% | ||||
11,812 | Muenchener Rueckversicherungs-Gesellschaft AG – Registered | 1,922,743 | ||
16,229 | RWE AG | 1,444,281 | ||
3,367,024 | ||||
Japan—2.6% | ||||
26,150 | Nitori Company, Ltd. | 1,986,997 | ||
28,100 | Secom Company, Ltd. | 1,229,976 | ||
3,216,973 | ||||
Ireland—2.2% | ||||
55,174 | Covidien PLC | 2,774,149 |
89 |
Portfolio of Investments (continued)
INTERNATIONAL FUND
March 31, 2010
Shares or | |||||||
Principal | |||||||
Amount | Security | Value | |||||
Italy—1.8% | |||||||
515,700 | Terna-Rete Elettrica Nationale SpA | $ 2,234,695 | |||||
Netherlands—1.7% | |||||||
16,624 | Core Laboratories NV | 2,174,419 | |||||
Belgium—1.5% | |||||||
7,501 | Colruyt SA | 1,849,774 | |||||
Total Value of Common Stocks (cost $102,861,491) | 120,647,626 | ||||||
PREFERRED STOCKS—2.5% | |||||||
Brazil | |||||||
122,365 | AES Tiete SA | 1,331,500 | |||||
19,600 | Companhia de Bebidas das Americas (ADR) | 1,796,536 | |||||
Total Value of Preferred Stocks (cost $2,231,200) | 3,128,036 | ||||||
SHORT-TERM INVESTMENTS—1.4% | |||||||
Money Market Fund | |||||||
$ 1,745 | M | First Investors Cash Reserve Fund, .22% (cost $1,745,000)** | 1,745,000 | ||||
Total Value of Investments (cost $106,837,691) | 99.8 | % | 125,520,662 | ||||
Other Assets, Less Liabilities | .2 | 254,190 | |||||
Net Assets | 100.0 | % | $125,774,852 |
* | 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, 2010 (see Note 2). | |||
Smmary of Abbreviations: | |||
ADR | American Depositary Receipts | ||
REIT | Real Estate Investment Trust |
90 |
Accounting Standards Codification (“ASC”) 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:
Level 1 — | 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 following is a summary, by category of Level, of inputs used to value the Fund’s investments as of March 31, 2010:
Level 2 | ||||||||||||
Other | Level 3 | |||||||||||
Level 1 | Significant | Significant | ||||||||||
Quoted | Observable | Unobservable | ||||||||||
Prices | Inputs | Inputs | Total | |||||||||
Common Stocks | $ | 120,647,626 | $ | — | $ | — | $ | 120,647,626 | ||||
Preferred Stocks | 3,128,036 | — | — | 3,128,036 | ||||||||
Money Market Fund | 1,745,000 | — | — | 1,745,000 | ||||||||
Total Investments in Securities* | $ | 125,520,662 | $ | — | $ | — | $ | 125,520,662 | ||||
Other Financial Instruments** | $ | — | $ | (242,347) | $ | — | $ | (242,347) |
* | The Portfolio of Investments provides information on the country categorization for the portfolio. | |
** | Other financial instruments are foreign exchange contracts that are considered derivative instruments | |
and are valued at the net unrealized depreciation on the instruments. |
See notes to financial statements | 91 |
Statements of Assets and Liabilities
FIRST INVESTORS INCOME FUNDS
March 31, 2010
CASH | INVESTMENT | |||||||||||
MANAGEMENT | GOVERNMENT | GRADE | INCOME | |||||||||
Assets | ||||||||||||
Investments in securities: | ||||||||||||
Cost – Unaffiliated issuers | $151,207,271 | $299,392,501 | $336,643,294 | $472,003,852 | ||||||||
Cost – Affiliated money market fund (Note 2) | — | 3,490,000 | 4,035,000 | 13,240,000 | ||||||||
Total cost of investments | $151,207,271 | $302,882,501 | $340,678,294 | $485,243,852 | ||||||||
Value – Unaffiliated issuers (Note 1A) | $151,207,271 | $308,412,165 | $362,002,366 | $473,627,758 | ||||||||
Value – Affiliated money market fund (Note 2) | — | 3,490,000 | 4,035,000 | 13,240,000 | ||||||||
Total value of investments | 151,207,271 | 311,902,165 | 366,037,366 | 486,867,758 | ||||||||
Cash | 878,033 | 80,627 | 115,582 | 103,706 | ||||||||
Receivables: | ||||||||||||
Investment securities sold | — | 2,604,060 | — | 5,635,921 | ||||||||
Interest | 249,539 | 1,330,330 | 5,653,186 | 10,036,453 | ||||||||
Shares sold | — | 279,180 | 359,081 | 558,426 | ||||||||
Other assets | 32,725 | 58,299 | 65,114 | 86,493 | ||||||||
Total Assets | 152,367,568 | 316,254,661 | 372,230,329 | 503,288,757 | ||||||||
Liabilities | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | — | 1,388,078 | — | 16,198,400 | ||||||||
Shares redeemed | 287,648 | 862,615 | 780,079 | 496,698 | ||||||||
Dividends payable | — | 99,046 | 151,201 | 561,090 | ||||||||
Accrued advisory fees | — | 156,451 | 183,423 | 304,163 | ||||||||
Accrued shareholder servicing costs | 56,929 | 52,657 | 65,293 | 95,429 | ||||||||
Accrued expenses | 24,947 | 9,284 | 6,819 | 48,715 | ||||||||
Total Liabilities | 369,524 | 2,568,131 | 1,186,815 | 17,704,495 | ||||||||
Net Assets | $151,998,044 | $313,686,530 | $371,043,514 | $485,584,262 | ||||||||
Net Assets Consist of: | ||||||||||||
Capital paid in | $151,998,044 | $311,333,504 | $385,260,315 | $765,350,158 | ||||||||
Undistributed net investment income (deficit) | — | (562,835 | ) | (1,385,959 | ) | 808,901 | ||||||
Accumulated net realized loss on investments | — | (6,103,803 | ) | (38,189,914 | ) | (282,198,703 | ) | |||||
Net unrealized appreciation in value of investments | — | 9,019,664 | 25,359,072 | 1,623,906 | ||||||||
Total | $151,998,044 | $313,686,530 | $371,043,514 | $485,584,262 | ||||||||
Net Assets: | ||||||||||||
Class A | $149,356,459 | $301,367,801 | $356,451,515 | $474,126,575 | ||||||||
Class B | $ 2,641,585 | $ 12,318,729 | $ 14,591,999 | $ 11,457,687 | ||||||||
Shares outstanding (Note 8): | ||||||||||||
Class A | 149,356,459 | 26,891,372 | 38,468,277 | 196,380,139 | ||||||||
Class B | 2,641,585 | 1,099,737 | 1,574,203 | 4,739,388 | ||||||||
Net asset value and redemption price per share — Class A | $ | 1.00 | # | $ | 11.21 | $ | 9.27 | $ | 2.41 | |||
Maximum offering price per share — Class A | ||||||||||||
(Net asset value/.9425)* | N/A | $ | 11.89 | $ | 9.84 | $ | 2.56 | |||||
Net asset value and offering price per share — Class B (Note 8) | $ | 1.00 | $ | 11.20 | $ | 9.27 | $ | 2.42 |
#Also maximum offering price per share.
*On purchases of $100,000 or more, the sales charge is reduced.
92 | See notes to financial statements | 93 |
Statements of Assets and Liabilities
FIRST INVESTORS EQUITY FUNDS
March 31, 2010
TOTAL | GROWTH & | ||||||||||||||||||
RETURN | VALUE | BLUE CHIP | INCOME | GLOBAL | |||||||||||||||
Assets | |||||||||||||||||||
Investments in securities: | |||||||||||||||||||
Cost – Unaffiliated issuers | $328,087,837 | $299,669,508 | $313,754,230 | $599,762,173 | $219,137,168 | ||||||||||||||
Cost – Affiliated money market fund (Note 2) | 1,400,000 | 13,315,000 | 1,750,000 | 4,580,000 | 8,240,000 | ||||||||||||||
Total cost of investments | $329,487,837 | $312,984,508 | $315,504,230 | $604,342,173 | $227,377,168 | ||||||||||||||
Value – Unaffiliated issuers (Note 1A) | $367,148,083 | $339,147,796 | $401,760,751 | $678,472,201 | $270,507,666 | ||||||||||||||
Value – Affiliated money market fund (Note 2) | 1,400,000 | 13,315,000 | 1,750,000 | 4,580,000 | 8,240,000 | ||||||||||||||
Total value of investments | 368,548,083 | 352,462,796 | 403,510,751 | 683,052,201 | 278,747,666 | ||||||||||||||
Cash | 104,302 | 48,383 | 214,575 | 48,163 | 44,350 | ||||||||||||||
Receivables: | |||||||||||||||||||
Investment securities sold | 2,725,005 | 1,042,386 | 1,383,691 | 589,152 | 436,856 | ||||||||||||||
Dividends and interest | 2,095,186 | 846,484 | 718,797 | 849,080 | 634,847 | ||||||||||||||
Shares sold | 383,459 | 199,717 | 224,115 | 655,105 | 312,670 | ||||||||||||||
Other assets | 63,276 | 60,178 | 70,312 | 113,744 | 47,985 | ||||||||||||||
Total Assets | 373,919,311 | 354,659,944 | 406,122,241 | 685,307,445 | 280,224,374 | ||||||||||||||
Liabilities | |||||||||||||||||||
Payables: | |||||||||||||||||||
Investment securities purchased | 3,237,009 | 1,023,160 | 445,514 | 2,185,855 | 1,055,349 | ||||||||||||||
Shares redeemed | 446,305 | 876,669 | 986,378 | 1,289,522 | 378,140 | ||||||||||||||
Dividends payable | 23,901 | 20,069 | 6,912 | 6,571 | — | ||||||||||||||
Accrued advisory fees | 245,742 | 234,178 | 267,567 | 438,141 | 233,447 | ||||||||||||||
Accrued shareholder servicing costs | 76,264 | 79,858 | 120,172 | 170,315 | 78,351 | ||||||||||||||
Accrued expenses | 25,766 | 26,972 | 29,701 | 44,491 | 36,891 | ||||||||||||||
Total Liabilities | 4,054,987 | 2,260,906 | 1,856,244 | 4,134,895 | 1,782,178 | ||||||||||||||
Net Assets | $369,864,324 | $352,399,038 | $404,265,997 | $681,172,550 | $278,442,196 | ||||||||||||||
Net Assets Consist of: | |||||||||||||||||||
Capital paid in | $339,491,390 | $355,907,285 | $423,037,632 | $612,637,739 | $286,698,749 | ||||||||||||||
Undistributed net investment income (deficit) | (128,979 | ) | 988,839 | 789,846 | 482,400 | (678,718 | ) | ||||||||||||
Accumulated net realized loss on investments | |||||||||||||||||||
and foreign currency transactions | (8,558,333 | ) | (43,975,374 | ) | (107,568,002 | ) | (10,657,617 | ) | (58,950,605 | ) | |||||||||
Net unrealized appreciation in value of investments | |||||||||||||||||||
and foreign currency transactions | 39,060,246 | 39,478,288 | 88,006,521 | 78,710,028 | 51,372,770 | ||||||||||||||
Total | $369,864,324 | $352,399,038 | $404,265,997 | $681,172,550 | $278,442,196 | ||||||||||||||
Net Assets: | |||||||||||||||||||
Class A | $350,471,603 | $340,049,366 | $386,926,677 | $650,583,269 | $271,100,092 | ||||||||||||||
Class B | $ 19,392,721 | $ 12,349,672 | $ 17,339,320 | $ 30,589,281 | $ 7,342,104 | ||||||||||||||
Shares outstanding (Note 8): | |||||||||||||||||||
Class A | 24,656,074 | 51,407,302 | 19,080,649 | 48,643,468 | 44,088,812 | ||||||||||||||
Class B | 1,386,636 | 1,897,571 | 919,347 | 2,429,860 | 1,361,725 | ||||||||||||||
Net asset value and redemption price | |||||||||||||||||||
per share – Class A | $ | 14.21 | $ | 6.61 | $ | 20.28 | $ | 13.37 | $ | 6.15 | |||||||||
Maximum offering price per share – Class A | |||||||||||||||||||
(Net asset value/.9425)* | $ | 15.08 | $ | 7.01 | $ | 21.52 | $ | 14.19 | $ | 6.53 | |||||||||
Net asset value and offering price per share – | |||||||||||||||||||
Class B (Note 8) | $ | 13.99 | $ | 6.51 | $ | 18.86 | $ | 12.59 | $ | 5.39 |
*On purchases of $100,000 or more, the sales charge is reduced.
94 | See notes to financial statements | 95 |
Statements of Assets and Liabilities
FIRST INVESTORS EQUITY FUNDS
March 31, 2010
SELECT | SPECIAL | |||||||||||||
GROWTH | OPPORTUNITY | SITUATIONS | INTERNATIONAL | |||||||||||
Assets | ||||||||||||||
Investments in securities: | ||||||||||||||
Cost – Unaffiliated issuers | $161,182,440 | $364,494,995 | $217,636,910 | $105,092,691 | ||||||||||
Cost – Affiliated money market fund (Note 2) | 2,375,000 | 1,030,000 | 12,600,000 | 1,745,000 | ||||||||||
Total cost of investments | $163,557,440 | $365,524,995 | $230,236,910 | $106,837,691 | ||||||||||
Value – Unaffiliated issuers (Note 1A) | $192,392,809 | $426,784,722 | $271,128,954 | $123,775,662 | ||||||||||
Value – Affiliated money market fund (Note 2) | 2,375,000 | 1,030,000 | 12,600,000 | 1,745,000 | ||||||||||
Total value of investments | 194,767,809 | 427,814,722 | 283,728,954 | 125,520,662 | ||||||||||
Cash | 79,055 | 67,739 | 45,382 | 351,242 | ||||||||||
Receivables: | ||||||||||||||
Investment securities sold | — | 2,927,644 | 999,911 | 233,809 | ||||||||||
Dividends and interest | 159,494 | 578,225 | 102,786 | 697,481 | ||||||||||
Shares sold | 89,015 | 418,556 | 304,645 | 65,286 | ||||||||||
Unrealized appreciation of foreign exchange | ||||||||||||||
contracts (Note 7) | — | — | — | 611,080 | ||||||||||
Forward currency contracts (Note 6) | — | — | — | 338 | ||||||||||
Other assets | 33,956 | 71,375 | 47,974 | 20,563 | ||||||||||
Total Assets | 195,129,329 | 431,878,261 | 285,229,652 | 127,500,461 | ||||||||||
Liabilities | ||||||||||||||
Payables: | ||||||||||||||
Investment securities purchased | — | 2,618,269 | 255,295 | 453,958 | ||||||||||
Shares redeemed | 500,240 | 752,862 | 643,733 | 223,597 | ||||||||||
Unrealized depreciation of foreign exchange | ||||||||||||||
contracts (Note 7) | — | — | — | 853,427 | ||||||||||
Accrued advisory fees | 129,991 | 281,942 | 203,727 | 109,350 | ||||||||||
Accrued shareholder servicing costs | 69,712 | 113,170 | 80,172 | 46,821 | ||||||||||
Accrued expenses | 24,377 | 31,612 | 23,067 | 38,456 | ||||||||||
Total Liabilities | 724,320 | 3,797,855 | 1,205,994 | 1,725,609 | ||||||||||
Net Assets | $194,405,009 | $428,080,406 | $284,023,658 | $125,774,852 | ||||||||||
Net Assets Consist of: | ||||||||||||||
Capital paid in | $265,161,403 | $381,517,130 | $266,074,231 | $149,478,376 | ||||||||||
Undistributed net investment income (deficit) | (365,727 | ) | (298,774 | ) | 262,587 | 1,277,955 | ||||||||
Accumulated net realized loss on investments | ||||||||||||||
and foreign currency transactions | (101,601,036 | ) | (15,427,677 | ) | (35,805,204 | ) | (43,431,974 | ) | ||||||
Net unrealized appreciation in value of investments | ||||||||||||||
and foreign currency transactions | 31,210,369 | 62,289,727 | 53,492,044 | 18,450,495 | ||||||||||
Total | $194,405,009 | $428,080,406 | $284,023,658 | $125,774,852 | ||||||||||
Net Assets: | ||||||||||||||
Class A | $184,756,414 | $404,567,826 | $275,395,229 | $122,131,556 | ||||||||||
Class B | $ 9,648,595 | $ 23,512,580 | $ 8,628,429 | $ 3,643,296 | ||||||||||
Shares outstanding (Note 8): | ||||||||||||||
Class A | 31,931,251 | 17,170,810 | 13,371,284 | 12,692,987 | ||||||||||
Class B | 1,803,590 | 1,141,490 | 480,488 | 387,325 | ||||||||||
Net asset value and redemption price | ||||||||||||||
per share – Class A | $ | 5.79 | $ | 23.56 | $ | 20.60 | $ | 9.62 | ||||||
Maximum offering price per share – Class A | ||||||||||||||
(Net asset value/.9425)* | $ | 6.14 | $ | 25.00 | $ | 21.86 | $ | 10.21 | ||||||
Net asset value and offering price per share – | ||||||||||||||
Class B (Note 8) | $ | 5.35 | $ | 20.60 | $ | 17.96 | $ | 9.41 | ||||||
*On purchases of $100,000 or more, the sales charge is reduced. |
96 | See notes to financial statements | 97 |
Statements of Operations
FIRST INVESTORS INCOME FUNDS
Six Months Ended March 31, 2010
CASH | INVESTMENT | ||||||||
MANAGEMENT | GOVERNMENT | GRADE | INCOME | ||||||
Investment Income | |||||||||
Income: | |||||||||
Interest. | $ | 275,298 | $ | 7,109,923 | $ | 10,192,421 | $ | 20,227,934 | |
Dividends | — | — | — | — | |||||
Dividends from affiliate (Note 2) | — | 13,117 | 3,574 | 8,834 | |||||
Total income | 275,298 | 7,123,040 | 10,195,995 | 20,236,768 | |||||
Expenses (Notes 1 and 3): | |||||||||
Advisory fees | 402,364 | 1,011,701 | 1,174,743 | 1,714,576 | |||||
Distribution plan expenses – Class A | — | 440,573 | 510,771 | 681,509 | |||||
Distribution plan expenses – Class B | 10,625 | 64,305 | 77,343 | 57,717 | |||||
Shareholder servicing costs | 339,824 | 304,155 | 371,367 | 528,120 | |||||
Professional fees | 35,312 | 25,239 | 32,762 | 62,309 | |||||
Registration fees | 30,077 | 23,424 | 22,431 | 20,000 | |||||
Custodian fees | 14,970 | 22,671 | 17,173 | 20,443 | |||||
Reports to shareholders | 25,657 | 8,693 | 10,976 | 24,107 | |||||
Trustees’ fees | 4,205 | 7,703 | 8,903 | 11,696 | |||||
Other expenses | 19,206 | 42,681 | 35,465 | 53,315 | |||||
Total expenses | 882,240 | 1,951,145 | 2,261,934 | 3,173,792 | |||||
Less: Expenses waived or assumed | (605,282 | ) | (168,617 | ) | (195,791 | ) | (83,986 | ) | |
Expenses paid indirectly | (1,660 | ) | (683 | ) | (740 | ) | (983 | ) | |
Net expenses | 275,298 | 1,781,845 | 2,065,403 | 3,088,823 | |||||
Net investment income | — | 5,341,195 | 8,130,592 | 17,147,945 | |||||
Realized and Unrealized Gain (Loss) on Investments (Note 2): | |||||||||
Net realized gain (loss) on investments | — | 1,386,584 | 5,442,972 | (561,963 | ) | ||||
Net unrealized appreciation (depreciation) of investments | — | (422,767 | ) | 1,480,518 | 19,723,586 | ||||
Net gain on investments | — | 963,817 | 6,923,490 | 19,161,623 | |||||
Net Increase in Net Assets Resulting from Operations | $ | — | $ | 6,305,012 | $ | 15,054,082 | $ | 36,309,568 |
98 | See notes to financial statements | 99 |
Statements of Operations
FIRST INVESTORS EQUITY FUNDS
Six Months Ended March 31, 2010
TOTAL | GROWTH & | ||||||||||||||
RETURN | VALUE | BLUE CHIP | INCOME | GLOBAL | |||||||||||
Investment Income | |||||||||||||||
Dividends | $ | 2,061,156 | (a) | $ | 4,751,267 | (b) | $ | 4,516,753 | (c) | $ | 6,295,136 | (d) | $ | 2,146,917 | (e) |
Dividends from affiliate (Note 2) | 3,153 | 19,221 | 6,664 | 4,254 | 10,862 | ||||||||||
Interest | 3,648,505 | — | — | — | 2,288 | ||||||||||
Total income | 5,712,814 | 4,770,488 | 4,523,417 | 6,299,390 | 2,160,067 | ||||||||||
Expenses (Notes 1 and 3): | |||||||||||||||
Advisory fees | 1,305,808 | 1,248,581 | 1,444,390 | 2,315,671 | 1,297,118 | ||||||||||
Distribution plan expenses – Class A | 496,048 | 483,106 | 556,544 | 909,474 | 386,222 | ||||||||||
Distribution plan expenses – Class B | 97,800 | 61,459 | 88,623 | 151,028 | 36,183 | ||||||||||
Shareholder servicing costs | 431,374 | 450,924 | 671,939 | 969,205 | 455,984 | ||||||||||
Professional fees | 27,467 | 27,641 | 32,495 | 47,106 | 22,759 | ||||||||||
Custodian fees | 20,324 | 8,351 | 10,530 | 18,596 | 46,106 | ||||||||||
Registration fees | 34,602 | 29,425 | 28,353 | 24,024 | 26,942 | ||||||||||
Reports to shareholders | 14,005 | 15,119 | 22,208 | 30,509 | 16,133 | ||||||||||
Trustees’ fees | 8,783 | 8,401 | 9,799 | 15,973 | 6,700 | ||||||||||
Other expenses | 38,777 | 35,687 | 39,105 | 60,105 | 43,747 | ||||||||||
Total expenses | 2,474,988 | 2,368,694 | 2,903,986 | 4,541,691 | 2,337,894 | ||||||||||
Less: Expenses waived | — | — | — | — | (39,708 | ) | |||||||||
Less: Expenses paid indirectly | (1,197 | ) | (1,128 | ) | (1,332 | ) | (2,115 | ) | (872 | ) | |||||
Net expenses | 2,473,791 | 2,367,566 | 2,902,654 | 4,539,576 | 2,297,314 | ||||||||||
Net investment income | 3,239,023 | 2,402,922 | 1,620,763 | 1,759,814 | (137,247 | ) | |||||||||
Realized and Unrealized Gain (Loss) on Investments | |||||||||||||||
and Foreign Currency Transactions (Note 2): | |||||||||||||||
Net realized gain (loss) on: | |||||||||||||||
Investments | 5,601,087 | 748,268 | 3,785,871 | 13,887,348 | 12,407,996 | ||||||||||
Foreign currency transactions | — | — | — | — | (62,577 | ) | |||||||||
Net realized gain on investments and | |||||||||||||||
foreign currency transactions | 5,601,087 | 748,268 | 3,785,871 | 13,887,348 | 12,345,419 | ||||||||||
Net unrealized appreciation of investments | 19,790,075 | 31,496,181 | 31,782,921 | 60,364,566 | 7,088,630 | ||||||||||
Net gain on investments and foreign currency transactions | 25,391,162 | 32,244,449 | 35,568,792 | 74,251,914 | 19,434,049 | ||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 28,630,185 | $ | 34,647,371 | $ | 37,189,555 | $ | 76,011,728 | $ | 19,296,802 |
(a) Net of $2,290 foreign taxes withheld
(b) Net of $32,072 foreign taxes withheld
(c) Net of $25,316 foreign taxes withheld
(d) Net of $6,812 foreign taxes withheld
(e) Net of $113,063 foreign taxes withheld
100 | See notes to financial statements | 101 |
Statements of Operations
FIRST INVESTORS EQUITY FUNDS
Six Months Ended March 31, 2010
SELECT | SPECIAL | |||||||||
GROWTH | OPPORTUNITY | SITUATIONS | INTERNATIONAL | |||||||
Investment Income | ||||||||||
Dividends | $ | 1,118,422 | $ | 2,565,643 | (f) | $ | 1,932,090 | $ | 1,725,335 | (g) |
Dividends from affiliate (Note 2) | 2,256 | 1,890 | 13,608 | 1,920 | ||||||
Interest | — | — | — | 86 | ||||||
Total income | 1,120,678 | 2,567,533 | 1,945,698 | 1,727,341 | ||||||
Expenses (Notes 1 and 3): | ||||||||||
Advisory fees | 693,120 | 1,465,734 | 1,235,397 | 577,671 | ||||||
Distribution plan expenses – Class A | 262,428 | 557,749 | 381,603 | 171,531 | ||||||
Distribution plan expenses – Class B | 49,400 | 114,249 | 42,766 | 17,690 | ||||||
Shareholder servicing costs | 398,353 | 653,692 | 459,078 | 275,651 | ||||||
Professional fees | 19,545 | 31,296 | 22,393 | 28,993 | ||||||
Custodian fees | 5,025 | 16,248 | 14,321 | 65,194 | ||||||
Registration fees | 19,354 | 28,492 | 26,109 | 20,149 | ||||||
Reports to shareholders | 14,071 | 21,752 | 15,106 | 10,260 | ||||||
Trustees’ fees | 4,664 | 9,891 | 6,591 | 2,947 | ||||||
Other expenses | 21,107 | 41,619 | 27,646 | 18,874 | ||||||
Total expenses | 1,487,067 | 2,940,722 | 2,231,010 | 1,188,960 | ||||||
Less: Expenses waived | — | — | (183,576 | ) | — | |||||
Expenses paid indirectly | (662 | ) | (1,290 | ) | (873 | ) | (380 | ) | ||
Net expenses | 1,486,405 | 2,939,432 | 2,046,561 | 1,188,580 | ||||||
Net investment income (loss) | (365,727 | ) | (371,899 | ) | (100,863 | ) | 538,761 | |||
Realized and Unrealized Gain (Loss) on Investments | ||||||||||
and Foreign Currency Transactions (Note 2): | ||||||||||
Net realized gain (loss) on: | ||||||||||
Investments | 3,796,972 | 8,933,924 | 12,071,329 | 222,584 | ||||||
Foreign currency transactions | — | — | — | (140,051 | ) | |||||
Net realized gain on investments | ||||||||||
and foreign currency transactions | 3,796,972 | 8,933,924 | 12,071,329 | 82,533 | ||||||
Net unrealized appreciation (depreciation) of: | ||||||||||
Investments | 11,956,770 | 42,290,578 | 18,491,014 | 8,337,043 | ||||||
Foreign currency transactions | — | — | — | 506,971 | ||||||
Net unrealized appreciation of investments and | ||||||||||
foreign currency transactions | 11,956,770 | 42,290,578 | 18,491,014 | 8,844,014 | ||||||
Net gain on investments and foreign currency transactions | 15,753,742 | 51,224,502 | 30,562,343 | 8,926,547 | ||||||
Net Increase in Net Assets Resulting from Operations | $ | 15,388,015 | $ | 50,852,603 | $ | 30,461,480 | $ | 9,465,308 |
(f) Net of $4,510 foreign taxes withheld
(g) Net of $182,718 foreign taxes withheld
102 | See notes to financial statements | 103 |
Statements of Changes in Net Assets
FIRST INVESTORS INCOME FUNDS
CASH MANAGEMENT | GOVERNMENT | INVESTMENT GRADE | INCOME | ||||||||||||||
10/1/09 to | 10/1/08 to | 10/1/09 to | 10/1/08 to | 10/1/09 to | 10/1/08 to | 10/1/09 to | 10/1/08 to | ||||||||||
3/31/10 | 9/30/09 | 3/31/10 | 9/30/09 | 3/31/10 | 9/30/09 | 3/31/10 | 9/30/09 | ||||||||||
Increase (Decrease) in Net Assets From Operations | |||||||||||||||||
Net investment income | $ | — | $ | 1,221,501 | $ | 5,341,195 | $ | 10,935,987 | $ | 8,130,592 | $ | 15,274,428 | $ | 17,147,945 | $ | 35,830,693 | |
Net realized gain (loss) on investments | — | — | 1,386,584 | 980,301 | 5,442,972 | (12,048,295 | ) | (561,963 | ) | (112,253,431 | ) | ||||||
Net unrealized appreciation (depreciation) of investments | — | — | (422,767 | ) | 10,055,950 | 1,480,518 | 45,188,050 | 19,723,586 | 88,440,358 | ||||||||
Net increase in net assets resulting | |||||||||||||||||
from operations | — | 1,221,501 | 6,305,012 | 21,972,238 | 15,054,082 | 48,414,183 | 36,309,568 | 12,017,620 | |||||||||
Dividends to Shareholders | |||||||||||||||||
Net investment income – Class A | — | (1,215,241 | ) | (5,814,860 | ) | (11,010,399 | ) | (8,454,433 | ) | (15,729,968 | ) | (17,734,302 | ) | (36,620,365 | ) | ||
Net investment income – Class B | — | (6,260 | ) | (211,108 | ) | (439,921 | ) | (329,913 | ) | (760,072 | ) | (411,845 | ) | (980,700 | ) | ||
Total dividends | — | (1,221,501 | ) | (6,025,968 | ) | (11,450,320 | ) | (8,784,346 | ) | (16,490,040 | ) | (18,146,147 | ) | (37,601,065 | ) | ||
Share Transactions * | |||||||||||||||||
Class A: | |||||||||||||||||
Proceeds from shares sold | 48,272,560 | 149,200,434 | 36,058,988 | 89,368,837 | 44,944,105 | 62,035,917 | 30,468,949 | 38,647,729 | |||||||||
Reinvestment of dividends | — | 1,183,936 | 5,217,130 | 9,894,128 | 7,562,084 | 13,931,701 | 14,349,691 | 29,097,696 | |||||||||
Cost of shares redeemed | (71,252,548 | ) | (212,143,550 | ) | (27,019,902 | ) | (50,746,193 | ) | (27,357,726 | ) | (48,574,281 | ) | (26,657,087 | ) | (64,519,916 | ) | |
(22,979,988 | ) | (61,759,180 | ) | 14,256,216 | 48,516,772 | 25,148,463 | 27,393,337 | 18,161,553 | 3,225,509 | ||||||||
Class B: | |||||||||||||||||
Proceeds from shares sold | 1,022,892 | 4,860,797 | 1,039,245 | 4,308,972 | 1,030,126 | 2,161,072 | 712,526 | 1,369,449 | |||||||||
Reinvestment of dividends | — | 6,061 | 195,818 | 411,452 | 304,097 | 691,880 | 346,754 | 796,975 | |||||||||
Cost of shares redeemed | (1,811,439 | ) | (5,000,550 | ) | (2,059,121 | ) | (3,684,416 | ) | (3,394,817 | ) | (5,425,434 | ) | (1,747,410 | ) | (4,484,336 | ) | |
(788,547 | ) | (133,692 | ) | (824,058 | ) | 1,036,008 | (2,060,594 | ) | (2,572,482 | ) | (688,130 | ) | (2,317,912 | ) | |||
Net increase (decrease) from share transactions | (23,768,535 | ) | (61,892,872 | ) | 13,432,158 | 49,552,780 | 23,087,869 | 24,820,855 | 17,473,423 | 907,597 | |||||||
Net increase (decrease) in net assets | (23,768,535 | ) | (61,892,872 | ) | 13,711,202 | 60,074,698 | 29,357,605 | 56,744,998 | 35,636,844 | (24,675,848 | ) | ||||||
Net Assets | |||||||||||||||||
Beginning of period | 175,766,579 | 237,659,451 | 299,975,328 | 239,900,630 | 341,685,909 | 284,940,911 | 449,947,418 | 474,623,266 | |||||||||
End of period † | $ | 151,998,044 | $ | 175,766,579 | $ | 313,686,530 | $ | 299,975,328 | $ | 371,043,514 | $ | 341,685,909 | $ | 485,584,262 | $ | 449,947,418 | |
†Includes undistributed net investment income (deficit) of | $ | — | $ | — | $ | (562,835 | ) $ | 121,938 | $ | (1,385,959 | ) $ | (732,205 | ) $ | 808,901 | $ | 1,087,103 | |
*Shares Issued and Redeemed | |||||||||||||||||
Class A: | |||||||||||||||||
Sold | 48,272,560 | 149,200,434 | 3,210,553 | 8,119,199 | 4,880,232 | 7,506,299 | 12,854,997 | 18,474,840 | |||||||||
Issued for dividends reinvested | — | 1,183,936 | 464,731 | 896,474 | 818,991 | 1,685,746 | 6,037,576 | 14,128,160 | |||||||||
Redeemed. | (71,252,548 | ) | (212,143,550 | ) | (2,406,000 | ) | (4,609,280 | ) | (2,970,678 | ) | (5,958,625 | ) | (11,242,077 | ) | (31,275,460 | ) | |
Net increase (decrease) in Class A shares outstanding | (22,979,988 | ) | (61,759,180 | ) | 1,269,284 | 4,406,393 | 2,728,545 | 3,233,420 | 7,650,496 | 1,327,540 | |||||||
Class B: | |||||||||||||||||
Sold | 1,022,892 | 4,860,797 | 92,520 | 391,751 | 111,976 | 263,623 | 299,520 | 664,130 | |||||||||
Issued for dividends reinvested | — | 6,061 | 17,453 | 37,308 | 32,930 | 84,000 | 145,719 | 387,573 | |||||||||
Redeemed | (1,811,439 | ) | (5,000,550 | ) | (183,563 | ) | (334,945 | ) | (368,458 | ) | (668,820 | ) | (737,069 | ) | (2,160,772 | ) | |
Net increase (decrease) in Class B shares outstanding | (788,547 | ) | (133,692 | ) | (73,590 | ) | 94,114 | (223,552 | ) | (321,197 | ) | (291,830 | ) | (1,109,069 | ) |
104 | See notes to financial statements | 105 |
Statements of Changes in Net Assets
FIRST INVESTORS EQUITY FUNDS
TOTAL RETURN | VALUE | BLUE CHIP | GROWTH & INCOME | ||||||||||||||
10/1/09 to | 10/1/08 to | 10/1/09 to | 10/1/08 to | 10/1/09 to | 10/1/08 to | 10/1/09 to | 10/1/08 to | ||||||||||
3/31/10 | 9/30/09 | 3/31/10 | 9/30/09 | 3/31/10 | 9/30/09 | 3/31/10 | 9/30/09 | ||||||||||
Increase (Decrease) in Net Assets From Operations | |||||||||||||||||
Net investment income | $ | 3,239,023 | $ | 6,724,242 | $ | 2,402,922 | $ | 5,849,817 | $ | 1,620,763 | $ | 4,058,526 | $ | 1,759,814 | $ | 4,423,835 | |
Net realized gain (loss) on investments | 5,601,087 | (9,483,692 | ) | 748,268 | (13,268,873 | ) | 3,785,871 | (9,977,253 | ) | 13,887,348 | (20,403,791 | ) | |||||
Net unrealized appreciation (depreciation) of investments | 19,790,075 | 10,774,205 | 31,496,181 | (20,963,487 | ) | 31,782,921 | (31,288,703 | ) | 60,364,566 | (32,959,787 | ) | ||||||
Net increase (decrease) in net assets resulting | |||||||||||||||||
from operations | 28,630,185 | 8,014,755 | 34,647,371 | (28,382,543 | ) | 37,189,555 | (37,207,430 | ) | 76,011,728 | (48,939,743 | ) | ||||||
Distributions to Shareholders | |||||||||||||||||
Net investment income – Class A | (3,687,425 | ) | (7,294,927 | ) | (2,412,061 | ) | (5,289,493 | ) | (2,176,199 | ) | (3,817,452 | ) | (1,311,617 | ) | (6,507,658 | ) | |
Net investment income – Class B | (151,237 | ) | (411,162 | ) | (49,784 | ) | (157,251 | ) | (49,186 | ) | (110,020 | ) | — | (312,817 | ) | ||
Net realized gains – Class A | — | — | — | — | — | — | — | (1,098,693 | ) | ||||||||
Net realized gains – Class B | — | — | — | — | — | — | — | (73,074 | ) | ||||||||
Total distributions | (3,838,662 | ) | (7,706,089 | ) | (2,461,845 | ) | (5,446,744 | ) | (2,225,385 | ) | (3,927,472 | ) | (1,311,617 | ) | (7,992,242 | ) | |
Share Transactions * | |||||||||||||||||
Class A: | |||||||||||||||||
Proceeds from shares sold | 30,971,971 | 48,128,682 | 24,837,660 | 46,162,803 | 21,991,764 | 41,475,826 | 43,705,974 | 78,339,719 | |||||||||
Reinvestment of distributions | 3,633,104 | 7,183,309 | 2,373,613 | 5,211,749 | 2,157,779 | 3,786,180 | 1,299,897 | 7,539,347 | |||||||||
Cost of shares redeemed | (23,180,273 | ) | (45,000,268 | ) | (26,587,289 | ) | (44,829,250 | ) | (27,571,060 | ) | (46,153,726 | ) | (43,479,430 | ) | (79,223,395 | ) | |
11,424,802 | 10,311,723 | 623,984 | 6,545,302 | (3,421,517 | ) | (891,720 | ) | 1,526,441 | 6,655,671 | ||||||||
Class B: | |||||||||||||||||
Proceeds from shares sold | 853,903 | 1,896,768 | 504,590 | 1,383,432 | 714,028 | 1,712,240 | 1,385,581 | 2,970,932 | |||||||||
Reinvestment of distributions | 150,015 | 405,877 | 49,487 | 156,218 | 49,128 | 109,716 | — | 384,206 | |||||||||
Cost of shares redeemed | (3,542,477 | ) | (6,192,908 | ) | (1,785,494 | ) | (4,455,394 | ) | (3,400,362 | ) | (6,707,446 | ) | (4,730,955 | ) | (9,309,449 | ) | |
(2,538,559 | ) | (3,890,263 | ) | (1,231,417 | ) | (2,915,744 | ) | (2,637,206 | ) | (4,885,490 | ) | (3,345,374 | ) | (5,954,311 | ) | ||
Net increase (decrease) from share transactions | 8,886,243 | 6,421,460 | (607,433 | ) | 3,629,558 | (6,058,723 | ) | (5,777,210 | ) | (1,818,933 | ) | 701,360 | |||||
Net increase (decrease) in net assets | 33,677,766 | 6,730,126 | 31,578,093 | (30,199,729 | ) | 28,905,447 | (46,912,112 | ) | 72,881,178 | (56,230,625 | ) | ||||||
Net Assets | |||||||||||||||||
Beginning of period | 336,186,558 | 329,456,432 | 320,820,945 | 351,020,674 | 375,360,550 | 422,272,662 | 608,291,372 | 664,521,997 | |||||||||
End of period† | $ | 369,864,324 | $ | 336,186,558 | $ | 352,399,038 | $ | 320,820,945 | $ | 404,265,997 | $ | 375,360,550 | $ | 681,172,550 | $ | 608,291,372 | |
†Includes undistributed net investment income (deficit) of | $ | (128,979 | ) $ | 470,660 | $ | 988,839 | $ | 1,047,762 | $ | 789,846 | $ | 1,394,468 | $ | 482,400 | $ | 34,203 | |
*Shares Issued and Redeemed | |||||||||||||||||
Class A: | |||||||||||||||||
Sold | 2,260,958 | 4,109,052 | 3,950,852 | 8,803,750 | 1,136,582 | 2,580,194 | 3,486,924 | 7,829,046 | |||||||||
Issued for distributions reinvested | 261,183 | 603,791 | 367,344 | 985,364 | 109,018 | 232,570 | 99,755 | 746,863 | |||||||||
Redeemed | (1,688,09 | ) | (3,885,466 | ) | (4,212,382 | ) | (8,634,264 | ) | (1,418,788 | ) | (2,883,244 | ) | (3,462,752 | ) | (8,010,238 | ) | |
Net increase (decrease) in Class A shares outstanding | 834,049 | 827,377 | 105,814 | 1,154,850 | (173,188 | ) | (70,480 | ) | 123,927 | 565,671 | |||||||
Class B: | |||||||||||||||||
Sold | 63,254 | 165,872 | 81,800 | 272,994 | 39,672 | 115,095 | 117,664 | 317,151 | |||||||||
Issued for distributions reinvested | 10,980 | 34,840 | 7,789 | 30,278 | 2,685 | 7,334 | — | 40,830 | |||||||||
Redeemed | (265,450 | ) | (543,696 | ) | (291,162 | ) | (868,516 | ) | (190,120 | ) | (446,123 | ) | (404,190 | ) | (984,923 | ) | |
Net decrease in Class B shares outstanding | (191,216 | ) | (342,984 | ) | (201,573 | ) | (565,244 | ) | (147,763 | ) | (323,694 | ) | (286,526 | ) | (626,942 | ) |
106 | See notes to financial statements | 107 |
Statements of Changes in Net Assets
FIRST INVESTORS EQUITY FUNDS
GLOBAL | SELECT GROWTH | OPPORTUNITY | SPECIAL SITUATIONS | ||||||||||||||
10/1/09 to | 10/1/08 to | 10/1/09 to | 10/1/08 to | 10/1/09 to | 10/1/08 to | 10/1/09 to | 10/1/08 to | ||||||||||
3/31/10 | 9/30/09 | 3/31/10 | 9/30/09 | 3/31/10 | 9/30/09 | 3/31/10 | 9/30/09 | ||||||||||
Increase (Decrease) in Net Assets From Operations | |||||||||||||||||
Net investment gain (loss) | $ | (137,247 | ) $ | 753,481 | $ | (365,727 | ) $ | (928,942 | ) $ | (371,899 | ) $ | 121,938 | $ | (100,863 | ) $ | 418,246 | |
Net realized gain (loss) on investments | |||||||||||||||||
and foreign currency transactions | 12,345,419 | (64,378,267 | ) | 3,796,972 | (72,064,132 | ) | 8,933,924 | (24,480,008 | ) | 12,071,329 | (47,829,807 | ) | |||||
Net unrealized appreciation (depreciation) of investments | |||||||||||||||||
and foreign currency transactions | 7,088,630 | 63,840,351 | 11,956,770 | 27,119,973 | 42,290,578 | (2,830,615 | ) | 18,491,014 | 32,434,302 | ||||||||
Net increase (decrease) in net assets resulting | |||||||||||||||||
from operations | 19,296,802 | 215,565 | 15,388,015 | (45,873,101 | ) | 50,852,603 | (27,188,685 | ) | 30,461,480 | (14,977,259 | ) | ||||||
Distributions to Shareholders | |||||||||||||||||
Net investment income – Class A | (427,532 | ) | (700,428 | ) | — | — | — | — | — | (316,738 | ) | ||||||
Net investment income – Class B | — | (15,414 | ) | — | — | — | — | — | (769 | ) | |||||||
Distributions in excess of net investment income – Class A | — | (1,000,030 | ) | — | — | — | — | — | — | ||||||||
Distributions in excess of net investment income – Class B | — | (37,956 | ) | — | — | — | — | — | — | ||||||||
Net realized gains – Class A | — | — | — | — | — | (10,298,045 | ) | — | (6,706,340 | ) | |||||||
Net realized gains – Class B | — | — | — | — | — | (918,722 | ) | — | (335,771 | ) | |||||||
Total distributions | (427,532 | ) | (1,753,828 | ) | — | — | — | (11,216,767 | ) | — | (7,359,618 | ) | |||||
Share Transactions * | |||||||||||||||||
Class A: | |||||||||||||||||
Proceeds from shares sold | 20,044,559 | 27,829,425 | 15,448,049 | 30,784,311 | 28,640,961 | 45,788,903 | 17,882,916 | 31,078,864 | |||||||||
Reinvestment of distributions | 421,308 | 1,665,406 | — | — | — | 10,254,773 | — | 6,983,764 | |||||||||
Cost of shares redeemed | (16,944,174 | ) | (27,935,429 | ) | (15,242,285 | ) | (26,091,741 | ) | (27,443,445 | ) | (43,909,512 | ) | (18,084,449 | ) | (29,343,070 | ) | |
3,521,693 | 1,559,402 | 205,764 | 4,692,570 | 1,197,516 | 12,134,164 | (201,53 | ) | 8,719,558 | |||||||||
Class B: | |||||||||||||||||
Proceeds from shares sold | 451,039 | 1,013,659 | 440,048 | 1,073,575 | 924,380 | 1,869,978 | 386,037 | 785,115 | |||||||||
Reinvestment of distributions | — | 53,157 | — | — | — | 916,291 | — | 335,504 | |||||||||
Cost of shares redeemed | (944,928 | ) | (2,161,628 | ) | (2,054,291 | ) | (4,659,036 | ) | (3,338,580 | ) | (7,105,182 | ) | (1,541,169 | ) | (2,961,582 | ) | |
(493,889 | ) | (1,094,812 | ) | (1,614,243 | ) | (3,585,461 | ) | (2,414,200 | ) | (4,318,913 | ) | (1,155,132 | ) | (1,840,963 | ) | ||
Net increase (decrease) from share transactions | 3,027,804 | 464,590 | (1,408,479 | ) | 1,107,109 | (1,216,684 | ) | 7,815,251 | (1,356,665 | ) | 6,878,595 | ||||||
Net increase (decrease) in net assets | 21,897,074 | (1,073,673 | ) | 13,979,536 | (44,765,992 | ) | 49,635,919 | (30,590,201 | ) | 29,104,815 | (15,458,282 | ) | |||||
Net Assets | |||||||||||||||||
Beginning of period | 256,545,122 | 257,618,795 | 180,425,473 | 225,191,465 | 378,444,487 | 409,034,688 | 254,918,843 | 270,377,125 | |||||||||
End of period† | $ | 278,442,196 | $ | 256,545,122 | $ | 194,405,009 | $ | 180,425,473 | $ | 428,080,406 | $ | 378,444,487 | $ | 284,023,658 | $ | 254,918,843 | |
†Includes undistributed net investment income (deficit) of | $ | (678,718 | ) $ | (113,939 | ) $ | (365,727 | ) $ | — | $ | (298,774 | ) $ | 73,125 | $ | 262,587 | $ | 363,450 | |
*Shares Issued and Redeemed | |||||||||||||||||
Class A: | |||||||||||||||||
Sold | 3,406,440 | 5,981,721 | 2,807,388 | 6,231,108 | 1,312,838 | 2,694,996 | 937,953 | 2,014,582 | |||||||||
Issued for distributions reinvested | 70,927 | 370,090 | — | — | — | 620,749 | — | 471,557 | |||||||||
Redeemed | (2,873,119 | ) | (6,117,705 | ) | (2,768,144 | ) | (5,303,836 | ) | (1,255,601 | ) | (2,613,382 | ) | (942,665 | ) | (1,920,295 | ) | |
Net increase (decrease) in Class A shares outstanding | 604,248 | 234,106 | 39,244 | 927,272 | 57,237 | 702,363 | (4,712 | ) | 565,844 | ||||||||
Class B: | |||||||||||||||||
Sold | 87,417 | 257,172 | 85,808 | 236,169 | 48,356 | 126,727 | 23,264 | 58,566 | |||||||||
Issued for distributions reinvested | — | 13,356 | — | — | — | 62,889 | — | 25,749 | |||||||||
Redeemed | (183,498 | ) | (529,400 | ) | (405,252 | ) | (984,800 | ) | (176,223 | ) | (475,942 | ) | (93,010 | ) | (219,514 | ) | |
Net decrease in Class B shares outstanding | (96,081 | ) | (258,872 | ) | (319,444 | ) | (748,631 | ) | (127,867 | ) | (286,326 | ) | (69,746 | ) | (135,199 | ) |
108 | See notes to financial statements | 109 |
Statements of Changes in Net Assets
FIRST INVESTORS EQUITY FUNDS
INTERNATIONAL | |||||
10/1/09 to | 10/1/08 to | ||||
3/31/10 | 9/30/09 | ||||
Increase (Decrease) in Net Assets From Operations | |||||
Net investment gain | $ | 538,761 | $ | 1,022,732 | |
Net realized gain (loss) on investments | |||||
and foreign currency transactions | 82,533 | (23,842,576 | ) | ||
Net unrealized appreciation of investments | |||||
and foreign currency transactions | 8,844,014 | 19,013,662 | |||
Net increase (decrease) in net assets resulting | |||||
from operations | 9,465,308 | (3,806,182 | ) | ||
Dividends to Shareholders | |||||
Net investment income – Class A | (255,393 | ) | (1,461,635 | ) | |
Net investment income – Class B | — | (46,959 | ) | ||
Total dividends | (255,393 | ) | (1,508,594 | ) | |
Share Transactions * | |||||
Class A: | |||||
Proceeds from shares sold | 13,685,948 | 22,093,794 | |||
Reinvestment of dividends | 254,426 | 1,452,292 | |||
Cost of shares redeemed | (8,393,175 | ) | (15,560,100 | ) | |
5,547,199 | 7,985,986 | ||||
Class B: | |||||
Proceeds from shares sold | 258,104 | 520,694 | |||
Reinvestment of dividends | — | 46,946 | |||
Cost of shares redeemed | (286,366 | ) | (768,606 | ) | |
(28,262 | ) | (200,966 | ) | ||
Net increase from share transactions | 5,518,937 | 7,785,020 | |||
Net increase in net assets | 14,728,852 | 2,470,244 | |||
Net Assets | |||||
Beginning of period | 111,046,000 | 108,575,756 | |||
End of period † | $ | 125,774,852 | $ | 111,046,000 | |
†Includes undistributed net investment income of | $ | 1,277,955 | $ | 994,587 | |
*Shares Issued and Redeemed | |||||
Class A: | |||||
Sold | 1,482,831 | 2,936,440 | |||
Reinvestment of dividends | 27,299 | 189,594 | |||
Redeemed | (907,861 | ) | (2,078,169 | ) | |
Net increase in Class A shares outstanding | 602,269 | 1,047,865 | |||
Class B: | |||||
Sold | 28,800 | 71,230 | |||
Reinvestment of dividends | — | 6,234 | |||
Redeemed | (31,790 | ) | (103,335 | ) | |
Net decrease in Class B shares outstanding | (2,990 | ) | (25,871 | ) |
110 | See notes to financial statements |
Notes to Financial Statements
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
March 31, 2010
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, Special Situations Fund, and International Fund (each a “Fund”, collectively, “the Funds”). The Trusts account separately for the assets, liabilitie s and operations of each Fund. The objective of each Fund as of March 31, 2010 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 is valued at the mean between the closing bid and asked prices. Securities traded in
111 |
Notes to Financial Statements (continued)
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
March 31, 2010
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 pricing services approved by the Trusts’ Board of Trustees (the “Board”). The pricing services consider security type, rating, market condition and yield data as well as market quotations, prices provided by market makers and other available information in determining value. Short-term debt securities that mature in 60 days or less are valued at amortized cost.
The Funds monitor for significant events occurring prior to the close of trading on the New York Stock Exchange that could have a material impact on the value of any securities that are held by the Funds. Examples of such events include trading halts, natural disasters, political events and issuer-specific developments. If the Valuation Committee 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 fluctuations in U.S. securities markets exceed a predetermined level or if a foreign market is closed. For valuation purposes, where applicable, quotations of foreign secur ities in foreign currency are translated to U.S. dollar equivalents using the foreign exchange quotation in effect. At March 31, 2010, Fund For Income held nine securities that were fair valued by its Valuation Committee with an aggregate value of $228,592, representing 0% of the Fund’s net assets.
The Cash Management Fund values its portfolio securities in accordance with the amortized cost method of valuation under Rule 2a-7 of the 1940 Act. Amortized cost is an approximation of market value of an instrument, whereby the difference between its acquisition cost and market value at maturity is amortized on a straight-line basis over the remaining life of the instrument. The effect of changes in the market value of a security as a result of fluctuating interest rates is not taken into account and thus the amortized cost method of valuation may result in the value of a security being higher or lower than its actual market value.
In accordance with Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures” (“ASC 820”), formerly known as Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157, Fair Value Measurements, investments held by the Funds are carried at “fair value”. As defined by ASC 820, fair value is the price that a Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs are used in determining the value of the Funds’ investments.
112 |
In addition to defining fair value, ASC 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:
Level 1 — 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)
Equity securities traded on an exchange or the Nasdaq Stock Market are categorized in Level 1 of the fair value hierarchy to the extent that they are actively traded and valuation adjustments are not applied. Foreign securities that are fair valued in the event that fluctuations in U.S. securities markets exceed a predetermined level or if a foreign market is closed are categorized in Level 2. Corporate and municipal bonds, asset backed, U.S. Government and U.S. Agency securities are categorized in Level 2 to the extent that the inputs are observable and timely, otherwise they would be categorized as Level 3. Short-term notes that are valued at amortized cost are categorized in Level 2. Investments in the affiliated unregistered money market fund are categorized as Level 1. Foreign exchange contracts that are considered derivative instruments and are valued at the net unrealized appreciation or depreciation on the instruments are categorized in Level 2. Res tricted securities and securities that are fair valued by the Valuation Committee may be categorized in either Level 2 or Level 3 of the fair value hierarchy depending on the relative significance of valuation inputs.
The aggregate value by input level, as of March 31, 2010, for each Fund’s investments is included at the end of each Fund’s portfolio of investments.
In addition, effective June 15, 2009, the Funds adopted FASB Staff position (“FSP”) No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (“FSP No. 157-4”). FSP No. 157-4 emphasizes that the objective of fair value measurement described in ASC 820 remains unchanged and provides additional guidance for estimating fair value in accordance with ASC 820 when the volume and level of activity for the asset or liability have significantly decreased, as well as identifying circumstances that indicate that transactions are not orderly. FSP No. 157-4 identifies factors to be considered when determining whether or not a market is inactive and indicates that if a market is determined to be inactive and/or current market prices are reflective of “distressed sales” significant management judgment may be necessary to estimate fair value in accordance with ASC 820.
113 |
Notes to Financial Statements (continued)
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
March 31, 2010
In January 2010, FASB released Accounting Standards Update (“ASU”) No. 2010-06, Improving Disclosures about Fair Value Measurements (“ASU No. 2010-06”). Among the new disclosures and clarifications of existing disclosures ASU No. 2010-06 requires the Funds to disclose separately the amounts of significant transfers in and out of Level 1 and 2 fair value measurements and to describe the reasons for the transfers. Significance shall be judged with respect to total earnings and total assets or total liabilities. ASU No. 2010-06 requires the Level 3 roll forward reconciliation of beginning and ending balances to be prepared on a gross basis, in particular separately presenting information about purchases, sales, issuances, and settlements. ASU No. 2010-06 also requires disclosure of the reasons for significant transfers in and out of Level 3. ASU No. 2010-06 is effective for interim and annual periods beginning after December 15, 2009, e xcept for the Level 3 gross basis roll forward reconciliation which is effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years. As of March 31, 2010, FIMCO does not believe the adoption of ASU No. 2010-06 will have a material impact on the financial statement amounts of the Funds.
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, 2009, capital loss carryovers were as follows:
Year Capital Loss Carryovers Expire | ||||||||||||||||||
Total | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||
Government | $ | 7,490,387 | $ | — | $ | 54,921 | $ | 2,120,906 | $ | 1,600,894 | $ | 740,643 | $ | 1,909,473 | $ | 1,063,550 | $ | — |
Investment Grade | 34,032,850 | 27,419 | 407,283 | 1,356,376 | 14 | 741,116 | 4,294,433 | 401,409 | 26,804,800 | |||||||||
Fund For Income | 167,702,831 | 18,563,112 | 52,099,335 | 25,740,298 | 10,200,012 | 7,456,986 | 24,660,250 | 5,033,118 | 23,949,720 | |||||||||
Total Return | 5,168,651 | — | — | — | — | — | — | — | 5,168,651 | |||||||||
Value | 39,572,144 | — | 21,002,401 | — | — | — | — | — | 18,569,743 | |||||||||
Blue Chip* | 97,578,186 | 14,615,567 | 70,632,641 | — | — | — | — | — | 12,329,978 | |||||||||
Growth & Income | 8,796,265 | — | — | — | — | — | — | — | 8,796,265 | |||||||||
Global | 18,998,989 | — | — | — | — | — | — | — | 18,998,989 | |||||||||
Select Growth | 50,114,227 | — | — | — | — | — | — | 2,098,139 | 48,016,088 | |||||||||
Opportunity | 4,904,349 | — | — | — | — | — | — | — | 4,904,349 | |||||||||
Special Situations | 12,205,466 | — | — | — | — | — | — | — | 12,205,466 | |||||||||
International | 21,176,305 | — | — | — | — | — | 82,339 | 1,552,900 | 19,541,066 |
*For Blue Chip Fund, $3,583,654 of the $97,578,186 capital loss carryover was acquired on August 10, 2007 in the tax-free reorganization with the First Investors Focused Equity Fund that was approved by the Equity Funds’ Board of Trustees. 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.
114 |
As of March 31, 2010, FIMCO does not believe the adoption of ASU No. 2010-06 will have a material impact on the financial statement amounts of the Funds.
The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years 2006 – 2008, or expected to be taken in the Funds’ 2009 tax returns. The Funds identify their major tax jurisdictions as U.S. Federal, New York State, New York City and foreign jurisdictions where the Funds make significant investments; however the Funds are not aware of any tax position for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
C. Distributions to Shareholders— Dividends from net investment income of the Government Fund, Investment Grade Fund and Fund For Income are generally declared daily and paid monthly. The Cash Management Fund declares distributions, if any, daily and pays distributions monthly from the total of net investment income plus or minus all realized short-term gains and losses on investments. 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 Funds, if any, are normally declared and paid annually. Income dividends and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for capital loss carryforwards, deferral of wash sales losses, post-October capital losses, net operating losses and foreign currency transactions.
D. Expense Allocation—Expenses directly charged or attributable to a Fund are paid from the assets of that Fund. General expenses of the Trusts are allocated among and charged to the assets of each Fund on a fair and equitable basis, which may be based on the relative assets of each Fund or the nature of the services performed and relative applicability to each Fund.
E. 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.
115 |
Notes to Financial Statements (continued)
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
March 31, 2010
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.
Net realized and unrealized gains and losses on foreign currency transactions include gains and losses from the sales of foreign currency and gains and losses on accrued foreign dividends and related withholding taxes.
G. Other—Security transactions are generally accounted for on the first business day following the date the securities are purchased or sold, except for financial reporting purposes, which is trade date. 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. The Bank of New York Mellon (“BONY”) serves as custodian for the Income Funds. For the period, October 1, 2009 through October 7, 2009 BONY served as custodian for the Total Return, Value, Blue Chip, Growth & Income, Select Growth, Opportunity and Special Situations Funds. Effective October 8, 2009, Brown Brothers Harriman & Co. (“BBH”) became the custodian for the Total Return, Value, Blue Chip, Growth & Income, Select Growth, Opportunity and Special Situations Funds. BBH has served as custodian to the Global Fund and the International Fund since the Funds’ inception. The Funds reduced expenses through brokerage service arrangements. For the six months ended March 31, 2010, expenses were reduced by $4,066 for the Income Funds and by $9,849 for the Equity Funds under these arrangements.
2. Security Transactions—For the six months ended March 31, 2010, purchases and sales of securities and long-term U.S. Government obligations (excluding U.S. Treasury bills, short-term securities and foreign currencies) were as follows:
116 |
Long-Term U.S. | ||||||||||
Securities | Government Obligations | |||||||||
Cost of | Proceeds | Cost of | Proceeds | |||||||
Fund | Purchases | of Sales | Purchases | of Sales | ||||||
Government | $ | 90,590,394 | $ | 72,210,924 | $ | — | $ | — | ||
Investment Grade | 136,666,734 | 106,783,152 | — | 10,077,313 | ||||||
Fund For Income | 231,233,370 | 218,304,488 | — | — | ||||||
Total Return | 60,310,902 | 51,229,230 | 9,261,402 | 9,971,018 | ||||||
Value | 29,239,649 | 26,912,333 | — | — | ||||||
Blue Chip | 47,303,677 | 49,533,325 | — | — | ||||||
Growth & Income | 79,631,759 | 81,931,392 | — | — | ||||||
Global | 126,554,526 | 119,305,918 | — | — | ||||||
Select Growth | 85,006,173 | 86,557,853 | — | — | ||||||
Opportunity | 89,379,509 | 91,446,653 | — | — | ||||||
Special Situations | 88,758,366 | 95,634,090 | — | — | ||||||
International | 19,807,874 | 14,670,744 | — | — |
At March 31, 2010, aggregate cost and net unrealized appreciation of securities for federal income tax purposes were as follows:
Gross | Gross | Net | |||||||
Aggregate | Unrealized | Unrealized | Unrealized | ||||||
Fund | Cost | Appreciation | Depreciation | Appreciation | |||||
Government | $ | 302,882,500 | $ | 9,239,080 | $ | 219,416 | $ | 9,019,664 | |
Investment Grade | 341,546,088 | 25,437,668 | 946,390 | 24,491,278 | |||||
Fund For Income | 485,563,244 | 27,503,327 | 26,198,813 | 1,304,514 | |||||
Total Return | 331,179,839 | 53,760,107 | 16,391,863 | 37,368,244 | |||||
Value | 313,003,612 | 61,041,362 | 21,582,178 | 39,459,184 | |||||
Blue Chip | 321,547,800 | 99,745,757 | 17,782,805 | 81,962,952 | |||||
Growth & Income | 606,898,265 | 142,674,229 | 66,520,293 | 76,153,936 | |||||
Global* | 235,295,723 | 46,387,626 | 3,070,683 | 43,316,943 | |||||
Select Growth | 163,557,439 | 32,552,499 | 1,342,130 | 31,210,369 | |||||
Opportunity | 365,527,621 | 91,410,786 | 29,123,685 | 62,287,101 | |||||
Special Situations | 231,651,202 | 57,289,358 | 5,211,606 | 52,077,752 | |||||
International | 108,063,752 | 18,676,523 | 1,219,614 | 17,456,909 |
* Aggregate cost includes PFIC income of $60,104.
117 |
Notes to Financial Statements (continued)
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
March 31, 2010
Certain of the Funds may invest in First Investors Cash Reserve Fund, a series of First Investors Investment 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, 2010, 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 | 9/30/09 | Shares/Cost | Shares/Costs | 3/31/10 | Income | ||||||
Government | $ | 17,018,000 | $ | 49,750,000 | $ | 63,278,000 | $ | 3,490,000 | $ | 13,117 | |
Investment Grade | 5,775,000 | 50,085,000 | 51,825,000 | 4,035,000 | 3,574 | ||||||
Fund For Income | 4,170,000 | 112,280,000 | 103,210,000 | 13,240,000 | 8,834 | ||||||
Total Return | 700,000 | 30,760,000 | 30,060,000 | 1,400,000 | 3,153 | ||||||
Value | 15,725,000 | 16,510,000 | 18,920,000 | 13,315,000 | 19,221 | ||||||
Blue Chip | 7,485,000 | 21,520,000 | 27,255,000 | 1,750,000 | 6,664 | ||||||
Growth & Income | 5,405,000 | 41,920,000 | 42,745,000 | 4,580,000 | 4,254 | ||||||
Global | 11,955,000 | 28,505,000 | 32,220,000 | 8,240,000 | 10,862 | ||||||
Select Growth | 2,435,000 | 9,290,000 | 9,350,000 | 2,375,000 | 2,256 | ||||||
Opportunity | 3,830,000 | 33,925,000 | 36,725,000 | 1,030,000 | 1,890 | ||||||
Special Situations | 10,031,000 | 56,005,000 | 53,436,000 | 12,600,000 | 13,608 | ||||||
International | 1,250,000 | 11,990,000 | 11,495,000 | 1,745,000 | 1,920 |
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, 2010, total trustees fees accrued by the Income Funds and Equity Funds amounted to $32,507 and $73,749, 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, 2009 to March 31, 2010, FIMCO has voluntarily waived $371,683 in advisory fees to limit the Fund’s overall expense ratio to .60% on Class A shares and 1.35% on Class B shares. Also, FIMCO has voluntarily waived an additional $30,681 in advisory fees and assumed $187,639 in expenses to prevent a negative yield on the Fund’s shares.
118 |
For the period January 1, 2010 through March 31, 2010, ADM voluntarily waived $15,279 in transfer agent fees.
Government and Investment Grade Funds—.66% on the first $500 million of each Fund’s average daily net assets, declining by .02% on each $500 million thereafter, down to .60% on average daily net assets over $1.5 billion. For the six months ended March 31, 2010, FIMCO has voluntarily waived 16.7% of the .66% annual fee to limit the advisory fee to .55% of each Fund’s average daily net assets.
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. For the six months ended March 31, 2010, 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, 2010, FIMCO has voluntarily waived 20% of the 1% annual fee to limit the advisory fee to .80% of the Fund’s average daily net assets.
Global and International Funds—.98% on the first $300 million of each Fund’s average daily net assets, .95% on the next $300 million, .92% on the next $400 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, 2010, 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, 2010, total advisory fees accrued to FIMCO by the Income Funds and Equity Funds were $4,303,384 and $11,583,490, respectively, of which $850,758 and $223,284, respectively, was voluntarily waived by FIMCO as noted above.
119 |
Notes to Financial Statements (continued)
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
March 31, 2010
For the six months ended March 31, 2010, FIC, as underwriter, received from the Income Funds and Equity Funds $3,266,723 and $7,878,599, respectively, in commissions in connection with the sale of shares of the Funds, after allowing $88,933 and $5,095, respectively, to other dealers. For the six months ended March 31, 2010, shareholder servicing costs for the Income Funds and Equity Funds included $1,237,306 and $3,582,654, respectively, in transfer agent fees accrued to ADM and $205,081 and $979,543, 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, 2010, total distribution plan fees accrued to FIC by the Income Funds and Equity Funds amounted to $1,842,843 and $4,863,903, respectively.
Muzinich & Co., Inc., serves as investment subadviser to Fund For Income, Wellington Management Company, LLP serves as investment subadviser 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. 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, 2010, Investment Grade Fund held eighteen 144A securities with an aggregate value of $56,444,418 representing 15.2% of the Fund’s net assets, Fund For Income held eighty-two 144A securities with an aggregate value of $199,924,573 representing 41.2% of the Fund’s net assets, Total Return Fund held fourteen 144A securities with an aggregate value of $14,315,158 representing 3.9% of the Fund’s net assets. Unless otherwise noted, 144A securities are deemed to be liquid. 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, 2010, Cash Management Fund held eight Section 4(2) securities with an
120 |
aggregate value of $38,038,416 representing 25.0% 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—Forward currency contracts are obligations to purchase or sell a specific currency for an agreed-upon price at a future date. When the Global Fund and the International Fund purchase or sell foreign securities they may enter into a forward currency contract to minimize foreign exchange risk between the trade date and the settlement date of such transactions. The Funds could be exposed to risk if counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. Forward currency contracts are “marked-to-market” daily at the applicable translation rate and the resulting unrealized gains or losses are reflected in the Funds’ assets.
The Global Fund had no forward currency contracts outstanding at March 31, 2010.
The International Fund had the following forward currency contracts outstanding at March 31, 2010:
Contracts to Buy | Unrealized | |||||||
Foreign Currency | In Exchange for | Settlement Date | Loss | |||||
109,558 | Euro | US $ 146,792 | 3/31/10 | US $ (126 | ) | |||
110,325 | Euro | 148,618 | 4/1/10 | (45 | ) | |||
113,705 | Euro | 152,614 | 4/6/10 | (1,241 | ) | |||
112,871 | Euro | 152,726 | 4/7/10 | — | ||||
$ 600,750 | $(1,412 | ) | ||||||
Contracts to Sell | Unrealized | |||||||
Foreign Currency | In Exchange for | Settlement Date | Gain | |||||
57,866 | Euro | US $ 77,532 | 3/31/10 | US $ 767 | ||||
58,212 | Euro | 78,417 | 4/1/10 | 350 | ||||
58,009 | Euro | 77,860 | 4/6/10 | 633 | ||||
$233,809 | $1,750 | |||||||
Net Unrealized Gain on Forward Currency Contracts | $338 |
121 |
Notes to Financial Statements (continued)
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
March 31, 2010
7. Foreign Exchange Contracts—The Global Fund and the International Fund may enter into foreign exchange contracts for the purchase or sale of foreign currencies at negotiated rates at future dates. These contracts are considered derivative instruments and are used to decrease exposure to foreign exchange risk associated with foreign currency denominated securities held by the Funds. The Funds 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. Foreign exchange contracts are “marked-to-market” daily at the applicable translation rate and the resulting unrealized gains and losses are reflected in the Funds’ assets.
The Global Fund had no foreign exchange contracts open at March 31, 2010.
The International Fund had the following foreign exchange contracts open at March 31, 2010:
Contracts to Buy | Unrealized | |||||||
Foreign Currency | In Exchange for | Settlement Date | Gain (Loss | ) | ||||
4,202,000 | Brazilian Real | US $ 2,383,424 | 4/5/10 | US $ (28,966 | ) | |||
2,401,000 | Australian Dollar | 2,128,354 | 4/6/10 | 75,409 | ||||
5,812,000 | Brazilian Real | 3,184,100 | 6/21/10 | 72,469 | ||||
2,329,000 | Brazilian Real | 1,266,862 | 8/2/10 | 38,119 | ||||
$ 8,962,740 | $ 157,031 | |||||||
Contracts to Sell | Unrealized | |||||||
Foreign Currency | In Exchange for | Settlement Date | Gain (Loss) | |||||
4,202,000 | Brazilian Real | US $ 2,273,933 | 4/5/10 | US $ (80,525 | ) | |||
2,401,000 | Australian Dollar | 2,041,858 | 4/6/10 | (161,905 | ) | |||
4,723,000 | Euro | 6,751,220 | 6/10/10 | 360,497 | ||||
3,092,000 | Swiss Francs | 3,002,214 | 6/10/10 | 64,586 | ||||
1,354,000 | Australian Dollar | 1,205,182 | 6/10/10 | (37,590 | ) | |||
5,812,000 | Brazilian Real | 3,134,675 | 6/21/10 | (121,895 | ) | |||
2,329,000 | Brazilian Real | 1,197,737 | 8/2/10 | (107,244 | ) | |||
9,856,000 | British Pound | 14,662,377 | 9/27/10 | (288,172 | ) | |||
1,438,000 | Euro | 1,918,637 | 9/27/10 | (27,130 | ) | |||
$36,187,833 | $(399,378 | ) | ||||||
Net Unrealized Loss on Foreign Exchange Contracts | $(242,347 | ) |
122 |
Fair Value of Derivative Instruments – The fair value of derivative instruments as of March 31, 2010, was as follows:
Assets Derivatives | Liability Derivatives | ||||
Derivatives not accounted | Statements of | Statements of | |||
for as hedging instruments | Assets and | Assets and | |||
under ASC 815* | Liabilities Location | Value | Liabilities Location | Value | |
Foreign exchange contracts: | Unrealized | Unrealized | |||
appreciation of | depreciation of | ||||
foreign exchange | foreign exchange | ||||
contracts | $611,080 | contracts | $853,427 |
The effect of derivative instruments on the Statement of Operations is as follows:
Amount of Realized Gain or Loss Recognized on Derivatives | ||||
Derivatives not accounted | Net Realized Gain (Loss) | |||
for as hedging instruments | on Foreign Currency | |||
under ASC 815* | Transactions | |||
Foreign currency transactions | $(140,051) | |||
Amount of Change in Unrealized Gain or Loss Recognized on Derivatives | ||||
Derivatives not accounted | Net Unrealized Appreciation | |||
for as hedging instruments | (Depreciation) on Foreign | |||
under ASC 815* | Currency Transactions | |||
Foreign currency transactions | $506,971 |
*Formerly known as Statement 133
8. 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 exchange of Class B shares from a nother 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
123 |
Notes to Financial Statements (continued)
FIRST INVESTORS INCOME FUNDS
FIRST INVESTORS EQUITY FUNDS
March 31, 2010
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 expenses (other than distribution plan fees) are allocated daily to each class of shares based upon the relative proportion of net assets to each class.
9. Subsequent Events—Subsequent events occurring after March 31, 2010, have been evaluated for potential impact to this report through the date the financial statements were issued. There were no subsequent events to report that would have a material impact on the Funds’ financial statements.
124 |
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125 |
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 | ||||||||||||||||||||||||||||||||||
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 | 1.00 | .005 | — | .005 | .005 | — | .005 | 1.00 | .54 | 172 | .71 | .71 | .58 | 1.03 | .26 | — | ||||||||||||||||||
2010(b) | 1.00 | — | — | — | — | — | — | 1.00 | .00 | 149 | .34 | † | .34 | † | .00 | † | 1.08 | † | (.74 | )† | — | |||||||||||||
Class B | ||||||||||||||||||||||||||||||||||
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 | 1.00 | .001 | — | .001 | .001 | — | .001 | 1.00 | .14 | 3 | 1.13 | 1.13 | .16 | 1.78 | (.49 | ) | — | |||||||||||||||||
2010(b) | 1.00 | — | — | — | — | — | — | 1.00 | .00 | 3 | .34 | † | .34 | † | .00 | † | 1.83 | † | (1.49 | )† | — | |||||||||||||
GOVERNMENT FUND | ||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||
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 | 10.76 | .47 | .44 | .91 | .47 | — | .47 | 11.20 | 8.59 | 287 | 1.10 | 1.10 | 4.03 | 1.26 | 3.87 | 43 | ||||||||||||||||||
2010(b) | 11.20 | .20 | .03 | .23 | .22 | — | .22 | 11.21 | 2.07 | 301 | 1.13 | † | 1.13 | † | 3.51 | † | 1.24 | † | 3.40 | † | 24 | |||||||||||||
Class B | ||||||||||||||||||||||||||||||||||
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 | 10.76 | .39 | .43 | .82 | .39 | — | .39 | 11.19 | 7.75 | 13 | 1.80 | 1.80 | 3.33 | 1.96 | 3.17 | 43 | ||||||||||||||||||
2010(b) | 11.19 | .16 | .03 | .19 | .18 | — | .18 | 11.20 | 1.73 | 12 | 1.83 | † | 1.83 | † | 2.81 | † | 1.94 | † | 2.70 | † | 24 | |||||||||||||
126 | 127 |
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 | ||||||||||||||||||||||||||||||||||||
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 | 8.23 | .49 | .85 | 1.34 | .47 | — | .47 | 9.10 | 17.06 | 325 | 1.10 | 1.10 | 5.29 | 1.27 | 5.12 | 79 | ||||||||||||||||||||
2010(b) | 9.10 | .21 | .19 | .40 | .23 | — | .23 | 9.27 | 4.41 | 356 | 1.13 | † | 1.13 | † | 3.96 | † | 1.24 | † | 3.85 | † | 33 | |||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||
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 | 8.22 | .44 | .85 | 1.29 | .40 | — | .40 | 9.11 | 16.35 | 16 | 1.80 | 1.80 | 4.59 | 1.97 | 4.42 | 79 | ||||||||||||||||||||
2010(b) | 9.11 | .20 | .16 | .36 | .20 | — | .20 | 9.27 | 3.93 | 15 | 1.83 | † | 1.83 | † | 3.26 | † | 1.94 | † | 3.15 | † | 33 | |||||||||||||||
INCOME FUND | ||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
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 | 2.45 | .20 | (.13 | ) | .07 | .20 | — | .20 | 2.32 | 4.28 | 438 | 1.38 | 1.38 | 9.10 | 1.42 | 9.06 | 73 | |||||||||||||||||||
2010(b) | 2.32 | .09 | .09 | .18 | .09 | — | .09 | 2.41 | 7.96 | 474 | 1.31 | † | 1.31 | † | 7.13 | † | 1.34 | † | 7.10 | † | 48 | |||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||
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 | 2.45 | .19 | (.13 | ) | .06 | .18 | — | .18 | 2.33 | 3.75 | 12 | 2.08 | 2.08 | 8.40 | 2.12 | 8.36 | 73 | |||||||||||||||||||
2010(b) | 2.33 | .08 | .09 | .17 | .08 | — | .08 | 2.42 | 7.58 | 11 | 2.01 | † | 2.01 | † | 6.43 | † | 2.04 | † | 6.40 | † | 48 | |||||||||||||||
* Calculated without sales charges.
** Net of expenses waived or assumed by FIMCO and ADM (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 1E).
(b) For the period October 1, 2009 to March 31, 2010.
128 | See notes to financial statements | 129 |
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 | ||||||||||||||||||||||||||||||||||||
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 | 13.24 | .30 | .03 | .33 | .32 | — | .32 | 13.25 | 2.77 | 316 | 1.43 | 1.43 | 2.35 | N/A | N/A | 53 | ||||||||||||||||||||
2010(b) | 13.25 | .13 | .98 | 1.11 | .15 | — | .15 | 14.21 | 8.42 | 350 | 1.37 | † | 1.37 | † | 1.65 | † | N/A | N/A | 18 | |||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||
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 | 13.03 | .21 | .03 | .24 | .23 | — | .23 | 13.04 | 2.10 | 21 | 2.13 | 2.13 | 1.65 | N/A | N/A | 53 | ||||||||||||||||||||
2010(b) | 13.04 | .08 | .98 | 1.06 | .11 | — | .11 | 13.99 | 8.12 | 19 | 2.07 | † | 2.07 | † | .95 | † | N/A | N/A | 18 | |||||||||||||||||
VALUE FUND | ||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
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 | 6.65 | .11 | (.64 | ) | (.53 | ) | .11 | — | .11 | 6.01 | (7.81 | ) | 308 | 1.48 | 1.48 | 2.14 | N/A | N/A | 15 | |||||||||||||||||
2010(b) | 6.01 | .05 | .60 | .65 | .05 | — | .05 | 6.61 | 10.78 | 340 | 1.39 | † | 1.39 | † | 1.46 | † | N/A | N/A | 8 | |||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||
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 | 6.55 | .08 | (.64 | ) | (.56 | ) | .07 | — | .07 | 5.92 | (8.43 | ) | 12 | 2.18 | 2.18 | 1.44 | N/A | N/A | 15 | |||||||||||||||||
2010(b) | 5.92 | .02 | .60 | .62 | .03 | — | .03 | 6.51 | 10.41 | 12 | 2.09 | † | 2.09 | † | .76 | † | N/A | N/A | 8 | |||||||||||||||||
130 | 131 |
Financial Highlights (continued)
FIRST INVESTORS EQUITY FUNDS
P E R S H A R E D A T A | R A T I O S / S U P P L E M E N T A L D A T A | ||||||||||||||||||||||||||||||||||||
Less Distributions | Ratio to Average Net | ||||||||||||||||||||||||||||||||||||
Investment Operations | from | Ratio to Average Net | Assets Before Expenses | ||||||||||||||||||||||||||||||||||
Net Asset | Net | Net Realized | Net Asset | Assets** | Waived or Assumed | ||||||||||||||||||||||||||||||||
Value, | Investment | and Unrealized | Total from | Net | Net | Value, | Net Assets | Net Expenses | Net Expenses | Net | Net | Portfolio | |||||||||||||||||||||||||
Beginning | Income | Gain (Loss) on | Investment | Investment | Realized | Total | End of | Total | End of Period | After Fee | Before Fee | Investment | Investment | Turnover | |||||||||||||||||||||||
of Period | (Loss) | Investments | Operations | Income | Gain | Distributions | Period | Return | * | (in millions) | Credits | Credits | (a) | Income (Loss) | Expenses | Income (Loss) | Rate | ||||||||||||||||||||
BLUE CHIP FUND | |||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
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 | 20.48 | .21 | (1.95 | ) | (1.74 | ) | .20 | — | .20 | 18.54 | (8.36 | ) | 357 | 1.57 | 1.57 | 1.27 | N/A | N/A | 11 | ||||||||||||||||||
2010(b) | 18.54 | .08 | 1.77 | 1.85 | .11 | — | .11 | 20.28 | 10.01 | 387 | 1.46 | † | 1.46 | † | .86 | † | N/A | N/A | 12 | ||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||
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 | 19.07 | .09 | (1.82 | ) | (1.73 | ) | .09 | — | .09 | 17.25 | (9.00 | ) | 18 | 2.27 | 2.27 | .57 | N/A | N/A | 11 | ||||||||||||||||||
2010(b) | 17.25 | .01 | 1.65 | 1.66 | .05 | — | .05 | 18.86 | 9.63 | 17 | 2.16 | † | 2.16 | † | .16 | † | N/A | N/A | 12 | ||||||||||||||||||
GROWTH & INCOME FUND | |||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
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 | 13.00 | .09 | (1.02 | ) | (0.93 | ) | .14 | .02 | .16 | 11.91 | (6.93 | ) | 578 | 1.51 | 1.51 | .90 | N/A | N/A | 26 | ||||||||||||||||||
2010(b) | 11.91 | .04 | 1.45 | 1.49 | .03 | — | .03 | 13.37 | 12.49 | 651 | 1.39 | † | 1.39 | † | .58 | † | N/A | N/A | 13 | ||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||
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 | 12.30 | .01 | (.97 | ) | (.96 | ) | .10 | .02 | .12 | 11.22 | (7.59 | ) | 30 | 2.21 | 2.21 | .20 | N/A | N/A | 26 | ||||||||||||||||||
2010(b) | 11.22 | (.02 | ) | 1.39 | 1.37 | — | — | — | 12.59 | 12.21 | 31 | 2.09 | † | 2.09 | † | (.12 | )† | N/A | N/A | 13 |
132 | 133 |
Financial Highlights (continued)
FIRST INVESTORS EQUITY FUNDS
P E R S H A R E D A T A | R A T I O S / S U P P L E M E N T A L D A T A | ||||||||||||||||||||||||||||||||||||||
Less Distributions | Ratio to Average Net | ||||||||||||||||||||||||||||||||||||||
Investment Operations | from | Ratio to Average Net | Assets Before Expenses | ||||||||||||||||||||||||||||||||||||
Net Asset | Net | Net Realized | Distributions | Net Asset | Assets** | Waived or Assumed | |||||||||||||||||||||||||||||||||
Value, | Investment | and Unrealized | Total from | Net | Net | in Excess of | Value, | Net Assets | Net Expenses | Net Expenses | Net | Net | Portfolio | ||||||||||||||||||||||||||
Beginning | Income | Gain (Loss) on | Investment | Investment | Realized | Net Investment | Total | End of | Total | End of Period | After Fee | Before Fee | Investment | Investment | Turnover | ||||||||||||||||||||||||
of Period | (Loss) | Investments | Operations | Income | Gain | Income | Distributions | Period | Return | * | (in millions) | Credits | Credits | (a) | Income (Loss) | Expenses | Income (Loss) | Rate | |||||||||||||||||||||
GLOBAL FUND | |||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||
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 | 5.75 | .02 | — | .02 | .02 | — | .02 | .04 | 5.73 | .53 | 249 | 1.90 | 1.90 | .38 | 1.93 | .35 | 141 | ||||||||||||||||||||||
2010(b) | 5.73 | — | .43 | .43 | .01 | — | — | .01 | 6.15 | 7.51 | 271 | 1.71 | † | 1.71 | † | (.09 | )† | 1.74 | † | (.12 | )† | 47 | |||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||
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 | 5.09 | (.03 | ) | — | (.03 | ) | .01 | — | .02 | .03 | 5.03 | (.37 | ) | 7 | 2.60 | 2.60 | (.32 | ) | 2.63 | (.35 | ) | 141 | |||||||||||||||||
2010(b) | 5.03 | (.03 | ) | .39 | .36 | — | — | — | — | 5.39 | 7.16 | 7 | 2.41 | † | 2.41 | † | (.79 | )† | 2.44 | † | (.82 | ) † | 47 | ||||||||||||||||
SELECT GROWTH FUND†† | |||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||
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 | 6.69 | (.02 | ) | (1.34 | ) | (1.36 | ) | — | — | — | — | 5.33 | (20.33 | ) | 170 | 1.67 | 1.67 | (.51 | ) | N/A | N/A | 120 | |||||||||||||||||
2010(b) | 5.33 | (.01 | ) | .47 | .46 | — | — | — | — | 5.79 | 8.63 | 185 | 1.57† | 1.57 | † | (.36 | )† | N/A | N/A | 47 | |||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||
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 | 6.25 | (.06 | ) | (1.25 | ) | (1.31 | ) | — | — | — | — | 4.94 | (20.96 | ) | 10 | 2.37 | 2.37 | (1.21 | ) | N/A | N/A | 120 | |||||||||||||||||
2010(b) | 4.94 | (.07 | ) | .48 | .41 | — | — | — | — | 5.35 | 8.30 | 10 | 2.27† | 2.27 | † | (1.06 | )† | N/A | N/A | 47 | |||||||||||||||||||
134 | 135 |
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 | ||||||||||||||||||||
OPPORTUNITY FUND††† | |||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
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 | 22.99 | .01 | (1.61 | ) | (1.60 | ) | — | .63 | .63 | 20.76 | (6.24 | ) | 355 | 1.58 | 1.58 | .09 | N/A | N/A | 35 | ||||||||||||||||||
2010(b) | 20.76 | (.02 | ) | 2.82 | 2.80 | — | — | — | 23.56 | 13.49 | 405 | 1.44 | † | 1.44 | † | (.15 | )† | N/A | N/A | 23 | |||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||
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 | 20.41 | (.10 | ) | (1.47 | ) | (1.57 | ) | — | .63 | .63 | 18.21 | (6.90 | ) | 23 | 2.28 | 2.28 | (.61 | ) | N/A | N/A | 35 | ||||||||||||||||
2010(b) | 18.21 | (.10 | ) | 2.49 | 2.39 | — | — | — | 20.60 | 13.13 | 24 | 2.14 | † | 2.14 | † | (.85 | )† | N/A | N/A | 23 | |||||||||||||||||
SPECIAL SITUATIONS FUND | |||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
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 | 20.15 | .03 | (1.23 | ) | (1.20 | ) | .02 | .53 | .55 | 18.40 | (5.28 | ) | 246 | 1.64 | 1.64 | .22 | 1.82 | .04 | 55 | ||||||||||||||||||
2010(b) | 18.40 | (.01 | ) | 2.21 | 2.20 | — | — | — | 20.60 | 11.96 | 275 | 1.53 | † | 1.53 | † | (.04 | )† | 1.67 | † | (.18 | )† | 36 | |||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||
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 | 17.81 | (.10 | ) | (1.09 | ) | (1.19 | ) | — | .53 | .53 | 16.09 | (5.99 | ) | 9 | 2.34 | 2.34 | (.48 | ) | 2.52 | (.66 | ) | 55 | |||||||||||||||
2010(b) | 16.09 | (.10 | ) | 1.97 | 1.87 | — | — | — | 17.96 | 11.62 | 9 | 2.23 | † | 2.23 | † | (.74 | )† | 2.37 | † | (.88 | )† | 36 | |||||||||||||||
136 | 137 |
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 | 9.48 | .29 | (.74 | ) | (.45 | ) | .13 | — | .13 | 8.90 | (4.52 | ) | 108 | 2.20 | 2.20 | 1.16 | N/A | N/A | 60 | ||||||||||||||||||
2010(b) | 8.90 | .04 | .70 | .74 | .02 | — | .02 | 9.62 | 8.33 | 122 | 1.99 | † | 1.99 | † | .93 | † | N/A | N/A | 13 | ||||||||||||||||||
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 | 9.33 | .22 | (.72 | ) | (.50 | ) | .12 | — | .12 | 8.71 | (5.19 | ) | 3 | 2.90 | 2.90 | .46 | N/A | N/A | 60 | ||||||||||||||||||
2010(b) | 8.71 | .01 | .69 | .70 | — | — | — | 9.41 | 8.04 | 4 | 2.69 | † | 2.69 | † | .23 | † | N/A | N/A | 13 | ||||||||||||||||||
* Calculated without sales charges.
** Net of expenses waived or assumed by FIMCO (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 1E).
(b) For the period October 1, 2009 to March 31, 2010.
(c) For the period June 27, 2006 (commencement of operations) to September 30, 2006.
138 | See notes to financial statements | 139 |
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, 2010, 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 o f March 31, 2010, 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.
140 |
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, 2010, 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, 2010
141 |
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. |
Mark R. Ward |
Officers |
——————————————————— |
Kathryn S. Head |
President |
Larry R. Lavoie |
Chief Compliance Officer |
Joseph I. Benedek |
Treasurer |
Mark S. Spencer |
Assistant Treasurer |
Carol Lerner Brown |
Assistant Secretary |
142 |
Shareholder Information | |
——————————————————— | |
Investment Adviser | Underwriter |
First Investors Management | First Investors Corporation |
Company, Inc. | 110 Wall Street |
110 Wall Street | New York, NY 10005 |
New York, NY 10005 | |
Subadviser | Custodian |
(Fund For Income) | (Income Funds) |
Muzinich & Co., Inc. | The Bank of New York Mellon |
450 Park Avenue | One Wall Street |
New York, NY 10022 | New York, NY 10286 |
Subadviser | Custodian |
(Global Fund) | (Equity Funds) |
Wellington Management Company, LLP | Brown Brothers Harriman & Co. |
75 State Street | 40 Water Street |
Boston, MA 02109 | Boston, MA 02109 |
Subadviser | Transfer Agent |
(Select Growth Fund) | Administrative Data Management Corp. |
Smith Asset Management Group, L.P. | Raritan Plaza I – 8th Floor |
100 Crescent Court | Edison, NJ 08837-3620 |
Dallas, TX 75201 | |
Subadviser | Independent Registered Public |
(Special Situations Fund) | Accounting Firm |
Paradigm Capital Management, Inc. | Tait, Weller & Baker LLP |
Nine Elk Street | 1818 Market Street |
Albany, NY 12207 | Philadelphia, PA 19103 |
Subadviser | Legal Counsel |
(International Fund) | K&L Gates LLP |
Vontobel Asset Management, Inc. | 1601 K Street, N.W. |
1540 Broadway, 38th Floor | Washington, DC 20006 |
New York, NY 10036 |
143 |
A description of the policies and procedures that the Funds use to vote proxies relating to a portfolio’s securities is available, without charge, upon request by calling toll free 1-800-423-4026 or can be viewed online or downloaded from the EDGAR database on the Securities and Exchange Commission’s (“SEC”) internet website at http://www.sec.gov. In addition, information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available, without charge, upon request in writing or by calling 1-800-423-4026 and on the SEC’s internet website at http://www.sec.gov.
The Funds file their complete schedule of portfolio holdings with the SEC on Form N-Q, for the first and third quarters of each fiscal year. The Funds' Form N-Q is available on the SEC’s website at http://www.sec.gov; and may also be reviewed and copied at the SEC’s Public Reference Room in Washington D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The schedule of portfolio holdings is available, without charge, upon request in writing or by calling 1-800-423-4026.
144 |
NOTES
145 |
NOTES
146 |
NOTES
147 |
NOTES
148 |
![](https://capedge.com/proxy/N-CSRS/0000886048-10-000006/backpagex11x1.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 shareholders 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 | |
By | /S/ KATHRYN S. HEAD |
Kathryn S. Head | |
President and Principal Executive Officer | |
Date: | June 7, 2010 |
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 | |
By | /S/ KATHRYN S. HEAD |
Kathryn S. Head | |
President and Principal Executive Officer | |
By | /S/ JOSEPH I. BENEDEK |
Joseph I. Benedek | |
Treasurer and Principal Financial Officer | |
Date: | June 7, 2010 |