UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------
FORM N-CSR
--------
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBERS 811-2860; 811-3967;
811-5690; 811-2107
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS GOVERNMENT FUND, INC.
FIRST INVESTORS SERIES FUND
FIRST INVESTORS FUND FOR INCOME, INC.
(Exact name of registrant as specified in charter)
95 Wall Street
New York, NY 10005
(Address of principal executive offices) (Zip code)
Joseph I. Benedek
First Investors Corporation
581 Main Street
Woodbridge, NJ 07095
1-732-855-2712
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
1-212-858-8000
DATE OF FISCAL YEAR END: SEPTEMBER 30, 2004
DATE OF REPORTING PERIOD: MARCH 31, 2004
Item 1. Reports to Stockholders
The Semi-Annual Report to Stockholders follows
Portfolio of Investments
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
March 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES--50.6%
$750M Abbott Laboratories, 7/1/04 1.42% $756,903 $43
2,388M Anheuser-Busch Cos., Inc., 5/10/04 + 1.00 2,385,413 137
3,000M Archer-Daniels-Midland Co., 6/8/04 + 1.03 2,994,158 172
960M Associates Corp., NA, 10/15/04 1.23 995,990 57
5,000M ChevronTexaco Funding Corp., 4/13/04 1.00 4,998,331 288
3,300M Clorox Co., 5/6/04 .99 3,296,824 190
Coca-Cola Co.:
4,000M 4/16/04 .99 3,998,348 230
1,300M 5/5/04 1.01 1,298,758 75
2,000M Dow Jones & Co., Inc., 5/17/04 + 1.00 1,997,417 115
5,000M DuPont (E.I.) de Nemours & Co., 5/7/04 1.00 4,994,997 288
3,000M Eli Lilly & Co., 5/7/04 + .98 2,997,058 172
3,500M Gannett Co., Inc., 4/21/04 + .98 3,498,094 201
5,000M General Electric Capital Corp., 5/11/04 1.02 4,994,331 288
4,250M International Business Machines Corp.,
4/16/04 .98 4,248,264 245
4,700M Madison Gas & Electric Co., 4/12/04 1.05 4,698,491 270
2,200M McDonald's Corp., 7/1/04 1.07 2,222,060 128
5,000M National Rural Utilities Cooperative
Finance Corp., 5/3/04 1.02 4,995,466 288
5,000M New York Times Co., 4/1/04 1.00 5,000,000 288
5,000M Paccar Financial Corp., 5/4/04 1.01 4,995,367 288
2,000M PepsiCo, Inc., 9/15/04 1.28 2,028,879 117
5,000M Pfizer, Inc., 4/7/04 + .99 4,999,175 288
5,000M Prudential Funding Corp., 4/26/04 .99 4,996,561 288
5,000M Verizon Network Funding Corp., 4/22/04 .98 4,997,141 288
2,500M W.W. Grainger, Inc., 4/26/04 .98 2,498,298 144
3,000M Wal-Mart Stores, Inc., 4/6/04 + .98 2,999,591 173
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Notes (cost $87,885,915) 87,885,915 5,061
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--29.7%
Fannie Mae:
4,580M 4/7/04 .98 4,579,230 264
6,000M 4/30/04 .96 5,995,248 345
3,800M 5/26/04 .99 3,794,202 218
500M 8/15/04 1.40 509,417 29
1,000M 8/27/04 1.38 1,000,000 58
1,000M 2/4/05 1.56 1,000,000 58
2,700M 2/14/05 1.38 2,700,000 155
750M Federal Farm Credit Bank, 12/15/04 1.24 763,746 44
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
March 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank:
$2,500M 4/16/04 .97% $2,498,947 $144
500M 5/14/04 1.03 502,248 29
800M 5/26/04 1.25 806,888 46
3,000M 2/2/05 1.50 3,000,000 173
670M 2/15/05 1.17 686,245 40
2,700M 2/23/05 1.41 2,697,587 155
2,000M 3/22/05 1.31 2,000,448 115
2,000M 3/23/05 1.35 2,000,000 115
3,000M 3/25/05 1.37 3,000,000 173
2,000M 3/28/05 1.38 2,000,000 115
955M 3/30/05 1.32 955,570 55
2,500M 4/27/05 1.34 2,499,000 144
Freddie Mac:
1,500M 4/13/04 1.05 1,499,510 86
1,000M 4/19/04 1.05 1,001,165 58
1,275M 5/20/04 1.19 1,278,069 74
3,750M 11/3/04 1.09 3,749,912 216
1,000M 11/19/04 1.51 999,985 58
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations
(cost $51,517,417) 51,517,417 2,967
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--8.9%
U.S. Treasury Bills:
10,500M 4/22/04 .93 10,494,311 604
5,000M 4/29/04 .93 4,996,371 288
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $15,490,682) 15,490,682 892
- ----------------------------------------------------------------------------------------------------------------------
BANKERS' ACCEPTANCES--4.7%
Bank of America, NA:
1,149M 5/12/04 1.01 1,147,690 66
3,861M 5/14/04 1.01 3,856,342 222
3,100M Regions Bank, 4/14/04 1.01 3,098,869 179
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Bankers' Acceptances (cost $8,102,901) 8,102,901 467
- ----------------------------------------------------------------------------------------------------------------------
FLOATING RATE NOTES--4.4%
2,000M Bank One Corp., 10/8/04 1.23 2,001,260 115
2,700M Fannie Mae, 9/10/04 1.05 2,700,000 155
3,000M Merrill Lynch & Co., Inc., 1/31/05 1.04 3,000,000 173
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Floating Rate Notes (cost $7,701,260) 7,701,260 443
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT--2.9%
$5,000M Chase Manhattan Bank, NA, 4/23/04
(cost $5,000,000) 1.02% $5,000,000 $288
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $175,698,175) ++ 101.2% 175,698,175 10,118
Excess of Liabilities Over Other Assets (1.2) (2,042,301) (118)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $173,655,874 $10,000
======================================================================================================================
* The interest rates shown are the effective rates at the time of purchase by the Fund. The interest
rates shown on floating rate notes are adjusted periodically and are the rates in effect at
March 31, 2004.
+ Security exempt from registration under Rule 144A of the Securities Act of 1933. See Note 4.
++ Aggregate cost for federal income tax purposes is the same.
See notes to financial statements
Portfolio of Investments
FIRST INVESTORS GOVERNMENT FUND, INC.
March 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MORTGAGE-BACKED CERTIFICATES--97.9%
Fannie Mae--15.9%
$17,350M 5.5%, 4/1/2033-11/1/2033 $17,809,361 $893
11,530M 6%, 12/1/2029-9/1/2032 12,014,305 602
1,667M 8%, 9/1/2027 1,843,866 92
- ----------------------------------------------------------------------------------------------------------------------
31,667,532 1,587
- ----------------------------------------------------------------------------------------------------------------------
Government National Mortgage Association I
Program--77.7%
44,297M 5.5%, 3/15/2033-3/15/2034 45,696,921 2,292
36,231M 6%, 3/15/2031-2/15/2034 37,965,535 1,904
41,746M 6.5%, 3/15/2028-10/15/2033 44,317,340 2,223
16,844M 7%, 7/15/2027-12/15/2033 17,999,347 903
4,943M 7.5%, 7/15/2023-12/15/2033 5,332,671 268
3,150M 8%, 4/15/2030-6/15/2030 3,492,816 175
- ----------------------------------------------------------------------------------------------------------------------
154,804,630 7,765
- ----------------------------------------------------------------------------------------------------------------------
Government National Mortgage Association II
Program--4.3%
1,317M 6.5%, 10/20/2028-1/20/2029 1,388,506 70
4,940M 7%, 6/20/2023-10/20/2029 5,265,966 264
1,826M 7.5%, 12/20/2022-10/20/2023 1,970,258 99
- ----------------------------------------------------------------------------------------------------------------------
8,624,730 433
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Mortgage-Backed Certificates
(cost $191,236,552) 195,096,892 9,785
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS--1.4%
2,800M U.S. Treasury Bills, .935%, 4/22/04
(cost $2,798,472) 2,798,472 140
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $194,035,024) 99.3% 197,895,364 9,925
Other Assets, Less Liabilities .7 1,487,868 75
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $199,383,232 $10,000
======================================================================================================================
See notes to financial statements
Portfolio of Investments
FIRST INVESTORS INVESTMENT GRADE FUND
March 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS--82.7%
Aerospace/Defense--2.2%
$100M Boeing Capital Corp., 4.75%, 2008 $105,592 $5
Honeywell International, Inc.:
1,500M 7.5%, 2010 1,805,638 94
975M 6.125%, 2011 1,097,528 57
Precision Castparts Corp.:
700M 8.75%, 2005 731,694 38
400M 5.60%, 2013 + 415,266 22
- ----------------------------------------------------------------------------------------------------------------------
4,155,718 216
- ----------------------------------------------------------------------------------------------------------------------
Automotive--3.3%
2,000M DaimlerChrysler NA Holdings Corp., 8%, 2010 2,357,900 123
886M Ford Motor Co., 8.9%, 2032 1,018,857 53
500M Lear Corp., 8.11%, 2009 593,750 31
730M Navistar International Corp., 8%, 2008 753,725 39
717M TRW, Inc., 7.125%, 2009 828,271 43
700M Visteon Corp., 8.25%, 2010 772,270 40
- ----------------------------------------------------------------------------------------------------------------------
6,324,773 329
- ----------------------------------------------------------------------------------------------------------------------
Chemicals--.4%
700M Lubrizol Corp., 7.25%, 2025 808,248 42
- ----------------------------------------------------------------------------------------------------------------------
Energy--1.9%
500M Mobil Corp., 8.625%, 2021 703,182 37
833M Repsol International Finance BV, 7.45%, 2005 890,504 46
975M Sunoco, Inc., 9.375%, 2016 1,108,870 58
800M Texaco Capital, Inc., 8.25%, 2006 926,186 48
- ----------------------------------------------------------------------------------------------------------------------
3,628,742 189
- ----------------------------------------------------------------------------------------------------------------------
Financial--5.3%
875M American General Finance Corp., 8.125%, 2009 1,065,418 55
CIT Group, Inc.:
300M 6.875%, 2009 346,582 18
1,900M 7.75%, 2012 2,298,384 120
400M Ford Motor Credit Co., 9.03%, 2009 414,611 22
General Electric Capital Corp.:
700M 7.875%, 2006 803,532 42
700M 8.5%, 2008 851,502 44
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INVESTMENT GRADE FUND
March 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Financial (continued)
$1,550M General Motors Acceptance Corp., 7.75%, 2010 $1,759,250 $92
Household Finance Corp.:
1,825M 6.5%, 2008 2,067,875 108
452M 7.75%, 2022 490,526 25
- ----------------------------------------------------------------------------------------------------------------------
10,097,680 526
- ----------------------------------------------------------------------------------------------------------------------
Financial Services--12.8%
Bank of America Corp.:
1,067M 7.8%, 2010 1,297,077 67
1,225M 7.4%, 2011 1,472,416 77
Bank One Corp.:
1,165M 7.6%, 2007 1,330,461 69
700M 7.875%, 2010 857,179 45
775M BB&T Corp., 5.2%, 2015 803,270 42
700M Chase Manhattan Corp., 7.875%, 2010 856,738 45
1,750M Comerica, 7.125%, 2013 1,999,564 104
945M Fifth Third Bank, 3.375%, 2008 959,119 50
First Union National Bank:
1,200M 7.8%, 2010 1,481,027 77
250M 6.18%, 2036 283,601 15
1,000M Fleet Capital Trust II, 7.92%, 2026 1,147,910 60
1,500M Florida Windstorm Underwriting Assoc.,
7.125%, 2019 + 1,837,104 96
1,200M Greenpoint Bank, 9.25%, 2010 1,523,782 79
775M Huntington National Bank, 8%, 2010 956,500 50
795M Manufacturers & Traders Trust Co., 8%, 2010 978,928 51
288M NBD Bancorp, Inc., 7.125%, 2007 326,727 17
1,125M Old National Bank, 6.75%, 2011 1,286,053 67
1,150M Republic NY Corp., 7.75%, 2009 1,372,539 71
1,600M Royal Bank of Scotland Group PLC, 5%, 2014 1,653,419 86
1,825M Washington Mutual, Inc., 8.25%, 2010 2,233,851 116
- ----------------------------------------------------------------------------------------------------------------------
24,657,265 1,284
- ----------------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--4.1%
Coca-Cola Enterprises, Inc.:
1,050M 7.125%, 2009 1,242,511 65
800M 7.125%, 2017 980,102 51
2,375M ConAgra Foods, Inc., 6.75%, 2011 2,730,473 142
700M Hershey Foods Corp., 6.7%, 2005 752,678 39
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco (continued)
$1,000M Pepsi Bottling Group, Inc., 7%, 2029 $1,187,508 $62
900M Philip Morris Companies, Inc., 6.95%, 2006 971,873 50
- ----------------------------------------------------------------------------------------------------------------------
7,865,145 409
- ----------------------------------------------------------------------------------------------------------------------
Food/Drug--3.3%
1,550M Delhaize America, Inc., 8.125%, 2011 1,790,250 93
Kroger Co.:
700M 6.8%, 2018 799,612 42
1,600M 7%, 2018 1,852,587 96
Safeway, Inc.:
510M 7%, 2007 577,190 30
450M 9.3%, 2007 528,025 28
700M 6.5%, 2011 782,544 41
- ----------------------------------------------------------------------------------------------------------------------
6,330,208 330
- ----------------------------------------------------------------------------------------------------------------------
Forest Products/Containers--3.1%
International Paper Co.:
700M 8.125%, 2005 755,365 39
1,190M 6.75%, 2011 1,355,249 71
1,725M Sappi Papier Holding AG, 6.75%, 2012 + 1,949,402 101
Weyerhaeuser Co.:
1,100M 7.25%, 2013 1,284,771 67
545M 7.5%, 2013 638,752 33
- ----------------------------------------------------------------------------------------------------------------------
5,983,539 311
- ----------------------------------------------------------------------------------------------------------------------
Gaming/Leisure--.9%
750M MGM Mirage, Inc., 8.5%, 2010 879,375 46
750M Park Place Entertainment Corp., 9.375%, 2007 847,500 44
- ----------------------------------------------------------------------------------------------------------------------
1,726,875 90
- ----------------------------------------------------------------------------------------------------------------------
Health Care--3.1%
1,880M Becton, Dickinson & Co., 7.15%, 2009 2,233,316 116
900M Columbia/HCA Healthcare, Inc., 7.5%, 2023 952,040 50
1,130M Tenet Healthcare Corp., 6.375%, 2011 983,100 51
1,500M Wyeth, 6.95%, 2011 1,731,292 90
- ----------------------------------------------------------------------------------------------------------------------
5,899,748 307
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INVESTMENT GRADE FUND
March 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--.2%
$450M International Business Machines Corp.,
4.875%, 2006 $481,077 $25
- ----------------------------------------------------------------------------------------------------------------------
Manufacturing--2.6%
875M Ingersoll-Rand Co., 9%, 2021 1,203,100 63
1,600M Newell Rubbermaid, Inc., 6.75%, 2012 1,793,979 93
United Technologies Corp.:
900M 6.5%, 2009 1,032,759 54
800M 7.125%, 2010 955,842 50
- ----------------------------------------------------------------------------------------------------------------------
4,985,680 260
- ----------------------------------------------------------------------------------------------------------------------
Media-Broadcasting--2.8%
Comcast Cable Communications, Inc.:
1,300M 8.375%, 2007 1,510,886 79
850M 7.125%, 2013 984,541 51
500M Cox Communications, Inc., 5.5%, 2015 513,502 27
1,480M Cox Enterprises, Inc., 8%, 2007 + 1,694,242 88
700M PanAmSat Corp., 6.375%, 2008 730,625 38
- ----------------------------------------------------------------------------------------------------------------------
5,433,796 283
- ----------------------------------------------------------------------------------------------------------------------
Media-Diversified--4.2%
750M AOL Time Warner, Inc., 6.875%, 2012 859,637 45
500M Houghton Mifflin Co., 7.2%, 2011 540,000 28
700M New York Times Co., 7.625%, 2005 743,269 39
1,600M News America, Inc., 7.3%, 2028 1,839,427 96
1,000M Time Warner, Inc., 6.875%, 2018 1,125,813 58
Viacom, Inc.:
775M 7.75%, 2005 828,902 43
500M 8.625%, 2012 639,198 33
360M 8.875%, 2014 473,379 25
900M Walt Disney Co., 7.3%, 2005 942,815 49
- ----------------------------------------------------------------------------------------------------------------------
7,992,440 416
- ----------------------------------------------------------------------------------------------------------------------
Metals/Mining--1.5%
1,446M Hanson PLC, 7.875%, 2010 1,755,143 92
950M Thiokol Corp., 6.625%, 2008 1,062,858 55
- ----------------------------------------------------------------------------------------------------------------------
2,818,001 147
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Real Estate--7.9%
$1,654M Archstone-Smith Trust, 7.9%, 2016 (REIT) $2,015,162 $105
AvalonBay Communities, Inc.:
1,900M 7.5%, 2010 (REIT) 228,489 12
200M 6.625%, 2011 (REIT) 2,267,973 118
1,800M Boston Properties, Inc., 5%, 2015 (REIT) 1,800,122 94
1,350M Duke-Weeks Realty Corp., 7.75%, 2009 (REIT) 1,623,511 84
EOP Operating LP:
1,705M 8.1%, 2010 (REIT) 2,060,591 107
150M 7.25%, 2018 (REIT) 176,977 9
1,900M Mack-Cali Realty LP, 7.75%, 2011 (REIT) 2,267,095 118
Simon Property Group, Inc.:
1,875M 7.875%, 2016 (REIT) + 2,297,089 120
425M 7.375%, 2018 (REIT) 510,298 27
- ----------------------------------------------------------------------------------------------------------------------
15,247,307 794
- ----------------------------------------------------------------------------------------------------------------------
Retail-General Merchandise--4.0%
1,750M Federated Department Stores, Inc., 7.45%, 2017 2,130,630 111
900M Lowe's Companies, Inc., 8.25%, 2010 1,126,584 59
800M RadioShack Corp., 7.375%, 2011 956,854 50
Target Corp.:
235M 5.375%, 2009 257,257 13
1,620M 7.5%, 2010 1,960,266 102
Wal-Mart Stores, Inc.:
700M 8%, 2006 796,827 41
400M 8.5%, 2024 426,277 22
- ----------------------------------------------------------------------------------------------------------------------
7,654,695 398
- ----------------------------------------------------------------------------------------------------------------------
Services--3.3%
Allied Waste NA, Inc.:
750M 8.875%, 2008 845,625 44
500M 5.75%, 2011 + 486,250 25
ERAC USA Finance Enterprise Co.:
750M 9.125%, 2004 786,950 41
1,775M 7.35%, 2008 + 2,057,181 107
520M 8%, 2011 + 633,450 33
1,400M Waste Management, Inc., 6.875%, 2009 1,601,306 84
- ----------------------------------------------------------------------------------------------------------------------
6,410,762 334
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INVESTMENT GRADE FUND
March 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Telecommunications--3.3%
$500M Chesapeake & Potomac Telephone Co. of Maryland,
8.3%, 2031 $654,986 $34
1,200M Deutsche Telekom AG, 8.5%, 2010 1,475,446 77
GTE Corp.:
909M 6.84%, 2018 1,028,993 54
500M 7.9%, 2027 563,925 29
800M New York Telephone Co., 6.125%, 2010 881,969 46
725M Sprint Capital Corp., 6.375%, 2009 808,914 42
750M Vodafone AirTouch PLC, 7.75%, 2010 904,868 47
- ----------------------------------------------------------------------------------------------------------------------
6,319,101 329
- ----------------------------------------------------------------------------------------------------------------------
Transportation--5.6%
1,217M Attransco, Inc., 6.12%, 2008 1,325,852 69
Burlington Northern Santa Fe Corp.:
725M 7.875%, 2007 839,064 44
700M 7.125%, 2010 825,233 43
700M 6.75%, 2011 818,981 42
Canadian National Railway Co.:
810M 6.45%, 2006 884,920 46
850M 7.375%, 2031 1,056,712 55
650M FedEx Corp., 3.5%, 2009 + 649,829 34
1,600M Norfolk Southern Corp., 7.7%, 2017 2,003,741 104
1,700M Union Pacific Corp., 7.375%, 2009 2,012,499 105
300M Union Pacific Railroad, 7.28%, 2011 365,576 19
- ----------------------------------------------------------------------------------------------------------------------
10,782,407 561
- ----------------------------------------------------------------------------------------------------------------------
Utilities--6.9%
700M Columbia Energy Group, 6.8%, 2005 753,850 39
Consumers Energy Co.:
735M 6.375%, 2008 812,684 42
1,500M 6.875%, 2018 1,786,187 93
1,000M DPL, Inc., 6.875%, 2011 1,020,000 53
1,650M Duke Capital Corp., 8%, 2019 1,966,699 102
795M El Paso Energy Corp., 7.375%, 2012 687,675 36
500M Entergy Gulf States, Inc., 6.2%, 2033 498,071 26
547M Niagara Mohawk Holdings, Inc., 7.625%, 2005 589,024 31
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities (continued)
$1,200M NiSource Finance Corp., 7.875%, 2010 $1,453,234 $76
1,350M PP&L Capital Funding, Inc., 8.375%, 2007 1,557,500 81
775M PSI Energy, Inc., 8.85%, 2022 1,047,406 54
900M Wisconsin Power & Light Co., 7%, 2007 1,014,072 53
- ----------------------------------------------------------------------------------------------------------------------
13,186,402 686
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $145,702,621) 158,789,609 8,266
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--4.5%
U.S. Treasury Notes:
1,000M 7.875%, 2004 1,042,344 54
2,000M 6.625%, 2007 2,276,330 119
1,300M 6%, 2009 1,500,740 78
3,300M 6.5%, 2010 3,913,338 204
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $8,367,337) 8,732,752 455
- ----------------------------------------------------------------------------------------------------------------------
PASS THROUGH CERTIFICATES--4.4%
Real Estate--.8%
1,353M FDA Queens LP, 6.99%, 2017 1,547,387 81
- ----------------------------------------------------------------------------------------------------------------------
Transportation--3.6%
751M American Airlines, Inc., 7.377%, 2019 565,402 29
446M Canadian National Railway Co., 7.195%, 2016 530,769 28
Continental Airlines, Inc.:
523M 6.748%, 2017 433,762 22
1,524M 8.388%, 2020 1,324,617 69
1,241M FedEx Corp., 7.5%, 2018 1,433,431 75
727M Northwest Airlines, Inc., 8.072%, 2019 811,601 42
1,003M NWA Trust, 10.23%, 2012 928,744 48
750M Southwest Airlines Co., 6.126%, 2006 818,205 43
- ----------------------------------------------------------------------------------------------------------------------
6,846,531 356
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Pass Through Certificates (cost $8,726,074) 8,393,918 437
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INVESTMENT GRADE FUND
March 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Principal For Each
Amount $10,000 of
or Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS--4.0%
Fannie Mae:
$1,600M 6.125%, 2012 $1,836,210 $96
960M 5%, 2016 958,733 50
1,425M Federal Home Loan Bank, 4.3%, 2008 1,432,027 74
900M Freddie Mac, 5%, 2018 899,663 47
2,300M Tennessee Valley Authority, 5.375%, 2008 2,534,204 132
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations
(cost $7,516,525) 7,660,837 399
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--.9%
Housing
Virginia State Housing Development Authority:
800M Series "A", 6.51%, 2019 834,032 44
710M Series "M", 7%, 2022 787,156 41
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $1,475,998) 1,621,188 85
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--.1%
Information Technology
Allstream, Inc.:
83 Class "A" 4,616 --
4,476 Class "B" 251,556 13
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $123,500) 256,172 13
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--1.6%
$1,600M ChevronTexaco Corp., .97%, 4/5/04 1,599,828 83
1,500M General Electric Co., 1%, 4/16/04 1,499,375 78
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $3,099,203) 3,099,203 161
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $175,011,258) 98.2% 188,553,679 9,816
Other Assets, Less Liabilities 1.8 3,542,384 184
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $192,096,063 $10,000
======================================================================================================================
+ Security exempt from registration under Rule 144A of the Securities Act of 1933. See Note 4.
Summary of Abbreviations:
REIT Real Estate Investment Trust
See notes to financial statements
Portfolio of Investments
FIRST INVESTORS FUND FOR INCOME, INC.
March 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS--88.8%
Aerospace/Defense--3.1%
$3,450M Alliant Techsystems, Inc., 8.5%, 2011 $3,829,500 $66
3,000M DeCrane Aircraft Holdings, Inc., 12%, 2008 1,998,750 34
900M DRS Technologies, Inc., 6.875%, 2013 940,500 16
2,700M GenCorp, Inc., 9.5%, 2013 2,875,500 49
L-3 Communications Corp.:
3,000M 8%, 2008 3,135,000 54
1,600M 7.625%, 2012 1,768,000 30
3,600M 6.125%, 2014 + 3,717,000 64
- ----------------------------------------------------------------------------------------------------------------------
18,264,250 313
- ----------------------------------------------------------------------------------------------------------------------
Automotive--7.8%
6,725M Accuride Corp., 9.25%, 2008 6,977,188 119
Asbury Automotive Group, Inc.:
3,400M 9%, 2012 3,655,000 63
2,700M 8%, 2014 + 2,713,500 46
4,208M Cambridge Industries Liquidating Trust ++ ** 168,337 3
7,800M Collins & Aikman Products Co., 11.5%, 2006 7,702,500 132
5,450M Dana Corp., 9%, 2011 6,580,875 113
5,500M Delco Remy International, Inc., 11%, 2009 5,912,500 101
2,500M Special Devices, Inc., 11.375%, 2008 2,415,625 41
4,693M TRW Automotive, Inc., 9.375%, 2013 5,420,415 93
3,600M United Components, Inc., 9.375%, 2013 3,906,000 67
- ----------------------------------------------------------------------------------------------------------------------
45,451,940 778
- ----------------------------------------------------------------------------------------------------------------------
Chemicals--9.6%
3,500M Equistar Chemicals LP, 10.625%, 2011 3,788,750 65
450M Ethyl Corp., 8.875%, 2010 488,250 8
3,500M FMC Corp., 10.25%, 2009 4,130,000 71
2,600M Huntsman, LLC, 11.625%, 2010 2,743,000 47
7,000M IMC Global, Inc., 10.875%, 2013 8,802,500 151
8,000M Lyondell Chemical Co., 10.875%, 2009 8,020,000 137
Millennium America, Inc.:
900M 7%, 2006 920,250 16
1,975M 9.25%, 2008 2,118,188 36
2,400M 9.25%, 2008 + 2,574,000 44
250M Nalco Co., 8.875%, 2013 + 261,875 5
3,250M Noveon, Inc., 11%, 2011 3,737,500 64
900M Omnova Solutions, Inc., 11.25%, 2010 1,003,500 17
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS FUND FOR INCOME, INC.
March 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Chemicals (continued)
$6,150M Resolution Performance Products, LLC,
13.5%, 2010 $5,166,000 $89
8,500M Terra Capital, Inc., 11.5%, 2010 9,307,500 159
4,500M Texas Petrochemicals Corp., 11.125%, 2006 ++ 1,777,500 30
900M Westlake Chemical Corp., 8.75%, 2011 999,000 17
- ----------------------------------------------------------------------------------------------------------------------
55,837,813 956
- ----------------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--3.2%
3,420M AKI, Inc., 10.5%, 2008 3,573,900 61
1,707M Chattem, Inc., 8.875%, 2008 1,766,028 30
4,000M GFSI, Inc., 9.625%, 2007 3,900,000 67
7,200M Playtex Products, Inc., 9.375%, 2011 6,948,000 119
2,500M Remington Arms Co., 10.5%, 2011 2,543,750 44
- ----------------------------------------------------------------------------------------------------------------------
18,731,678 321
- ----------------------------------------------------------------------------------------------------------------------
Energy--9.5%
7,000M Bluewater Finance, Ltd., 10.25%, 2012 7,315,000 125
4,500M Chesapeake Energy Corp., 9%, 2012 5,225,625 90
5,050M Compagnie Generale de Geophysique,
10.625%, 2007 5,479,250 94
4,075M Dresser, Inc., 9.375%, 2011 4,462,125 76
13,750M El Paso Production Holding Co., 7.75%, 2013 12,821,875 220
1,800M Energy Partners, Ltd., 8.75%, 2010 1,935,000 33
Giant Industries, Inc.:
1,730M 9%, 2007 1,790,550 31
8,500M 11%, 2012 9,583,750 164
1,000M Hanover Compressor Co., Zero Coupon
(effective yield 11.37%), 2007 ## 775,000 13
Tesoro Petroleum Corp.:
3,900M 9%, 2008 4,090,125 70
1,750M 9.625%, 2008 1,938,125 33
- ----------------------------------------------------------------------------------------------------------------------
55,416,425 949
- ----------------------------------------------------------------------------------------------------------------------
Financial Services--2.5%
14,500M Dow Jones Trac-X NA, High Yield, Series 2,
Trust 3, 8%, 2009 + 14,626,875 250
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--2.6%
Land O'Lakes, Inc.:
$1,800M 9%, 2010 + $1,827,000 $31
7,300M 8.75%, 2011 6,533,500 112
4,500M Merisant Co., 9.5%, 2013 + 4,455,000 76
1,550M Pilgrim's Pride Corp., 9.625%, 2011 1,677,875 29
150M PPC Escrow Corp, 9.25%, 2013 + 157,500 3
250M Reddy Ice Group, Inc., 8.875%, 2011 269,375 4
- ----------------------------------------------------------------------------------------------------------------------
14,920,250 255
- ----------------------------------------------------------------------------------------------------------------------
Food/Drug--1.9%
3,250M Di Giorgio Corp., 10%, 2007 3,250,000 56
4,000M Ingles Markets, Inc., 8.875%, 2011 4,190,000 72
3,500M Roundy's, Inc., 8.875%, 2012 3,867,500 66
- ----------------------------------------------------------------------------------------------------------------------
11,307,500 194
- ----------------------------------------------------------------------------------------------------------------------
Forest Products/Containers--4.1%
9,300M AEP Industries, Inc., 9.875%, 2007 9,648,750 165
1,250M Pliant Corp., 0%-11.125%, 2009 + # 1,006,250 17
4,000M Potlatch Corp., 10%, 2011 4,540,000 78
4,300M Stone Container Corp., 9.75%, 2011 4,826,750 83
3,625M Tekni-Plex, Inc., 12.75%, 2010 3,815,313 65
- ----------------------------------------------------------------------------------------------------------------------
23,837,063 408
- ----------------------------------------------------------------------------------------------------------------------
Gaming/Leisure--2.6%
2,250M Circus & Eldorado/Silver Legacy, 10.125%, 2012 2,300,625 39
4,550M Isle of Capri Casinos, Inc., 8.75%, 2009 4,771,813 82
3,000M John Q. Hammons Hotels, LP, 8.875%, 2012 3,352,500 57
2,445M Outboard Marine Corp., 10.75%, 2008 ++ ** 3,056 --
Park Place Entertainment Corp.:
3,500M 9.375%, 2007 3,955,000 68
500M 7%, 2013 547,500 9
- ----------------------------------------------------------------------------------------------------------------------
14,930,494 255
- ----------------------------------------------------------------------------------------------------------------------
Health Care--7.6%
4,176M Advanced Medical Optics, Inc., 9.25%, 2010 4,635,360 79
955M ALARIS Medical Systems, Inc., 7.25%, 2011 1,014,688 17
755M Fisher Scientific International, Inc., 8.125%, 2012 841,825 14
4,400M Genesis Health Ventures, Inc., 9.75%, 2005 ++ ** 5,500 --
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS FUND FOR INCOME, INC.
March 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care (continued)
$4,350M HCA, Inc., 5.25%, 2008 $4,500,962 $77
4,000M Insight Health Services Corp., 9.875%, 2011 4,030,000 69
500M Medex, Inc., 8.875%, 2013 + 546,250 9
4,500M MedQuest, Inc., 11.875%, 2012 5,152,500 88
2,800M Owens & Minor, Inc., 8.5%, 2011 3,143,000 54
3,600M PerkinElmer, Inc., 8.875%, 2013 4,176,000 72
1,725M Quintiles Transnational Corp., 10%, 2013 + 1,802,625 31
3,500M Rotech Healthcare, Inc., 9.5%, 2012 3,780,000 65
12,400M Tenet Healthcare Corp., 6.375%, 2011 10,788,000 185
- ----------------------------------------------------------------------------------------------------------------------
44,416,710 760
- ----------------------------------------------------------------------------------------------------------------------
Housing--2.3%
3,150M Integrated Electrical Services, Inc., 9.375%, 2009 3,315,375 57
1,500M Nortek, Inc., 9.875%, 2011 1,695,000 29
5,000M Ply Gem Industries, Inc., 9%, 2012 + 5,050,000 86
2,700M William Lyon Homes, Inc., 10.75%, 2013 3,206,250 55
- ----------------------------------------------------------------------------------------------------------------------
13,266,625 227
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--.9%
3,100M ChipPac International, Ltd., 12.75%, 2009 3,394,500 58
3,000M Exodus Communications, Inc., 10.75%, 2009 ++ ** 3,750 --
Iron Mountain, Inc.:
1,000M 8.625%, 2013 1,095,000 19
1,000M 6.625%, 2016 975,000 17
- ----------------------------------------------------------------------------------------------------------------------
5,468,250 94
- ----------------------------------------------------------------------------------------------------------------------
Investment/Finance Companies--.9%
2,600M Finova Group, Inc., 7.5%, 2009 1,618,500 28
3,400M General Motors Acceptance Corp., 4.5%, 2006 3,515,297 60
- ----------------------------------------------------------------------------------------------------------------------
5,133,797 88
- ----------------------------------------------------------------------------------------------------------------------
Manufacturing--2.8%
Columbus McKinnon Corp.:
7,900M 8.5%, 2008 7,465,500 128
500M 10%, 2010 542,500 9
1,800M Eagle-Picher Industries, Inc., 9.75%, 2013 1,980,000 34
6,000M Wolverine Tube, Inc., 10.5%, 2009 6,480,000 111
- ----------------------------------------------------------------------------------------------------------------------
16,468,000 282
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Media-Broadcasting--1.5%
$650M Block Communications, Inc., 9.25%, 2009 $695,500 $12
450M Nexstar Finance, Inc., 7%, 2014 + 447,750 7
3,000M Sinclair Broadcasting Group, Inc., 8.75%, 2011 3,337,500 57
Young Broadcasting Corp.:
2,920M 10%, 2011 3,139,000 54
900M 8.75%, 2014 + 931,500 16
- ----------------------------------------------------------------------------------------------------------------------
8,551,250 146
- ----------------------------------------------------------------------------------------------------------------------
Media-Cable TV--10.6%
2,275M Adelphia Communications Corp., 10.25%, 2011 ++ 2,286,375 39
3,700M Atlantic Broadband Finance, LLC, 9.375%, 2014 + 3,653,750 63
18,000M Cablevision Systems Corp., 8%, 2012 + 18,045,000 309
2,000M Century Communications Corp., 9.5%, 2005 ++ 2,100,000 36
Charter Communications Holdings, LLC:
8,500M 10%, 2009 7,310,000 125
1,000M 10.75%, 2009 880,000 15
2,000M 10.25%, 2010 1,705,000 29
5,800M 0%-9.92%, 2011 # 4,828,500 83
5,476M Loral Cyberstar, Inc., 10%, 2006 ++ 4,052,240 69
Mediacom LLC/Mediacom Capital Corp.:
6,500M 8.5%, 2008 6,516,250 112
4,000M 7.875%, 2011 3,880,000 66
2,000M 9.5%, 2013 1,990,000 34
4,300M Quebecor Media, Inc., 11.125%, 2011 4,955,750 85
- ----------------------------------------------------------------------------------------------------------------------
62,202,865 1,065
- ----------------------------------------------------------------------------------------------------------------------
Media-Diversified--2.8%
4,000M Garden State Newspapers, Inc., 8.625%, 2011 4,230,000 72
3,200M Mail-Well I Corp., 7.875%, 2013 + 3,040,000 52
1,500M R.H. Donnelley Financial Corp., 10.875%, 2012 + 1,796,250 31
1,800M Six Flags, Inc., 9.625%, 2014 + 1,921,500 33
3,400M Universal City Development Partners, Ltd.,
11.75%, 2010 3,973,750 68
1,000M Vivendi Universal SA, 9.25%, 2010 1,200,000 21
- ----------------------------------------------------------------------------------------------------------------------
16,161,500 277
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS FUND FOR INCOME, INC.
March 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Metals/Mining--1.0%
$3,728M Commonwealth Aluminum Corp., 10.75%, 2006 $3,755,960 $64
1,840M Euramax International, Inc., 8.5%, 2011 + 1,959,600 34
3,000M Murrin Murrin Holdings Property, Ltd.,
9.375%, 2007 ++ ** 3,750 --
- ----------------------------------------------------------------------------------------------------------------------
5,719,310 98
- ----------------------------------------------------------------------------------------------------------------------
Retail-General Merchandise--1.1%
1,848M Big 5 Corp., 10.875%, 2007 1,924,692 33
4,000M Michaels Stores, Inc., 9.25%, 2009 4,425,000 76
250M Phillips Van-Heusen Corp., 8.125%, 2013 270,625 4
- ----------------------------------------------------------------------------------------------------------------------
6,620,317 113
- ----------------------------------------------------------------------------------------------------------------------
Services--6.4%
Allied Waste NA, Inc.:
10,000M 10%, 2009 10,775,000 185
3,450M 5.75%, 2011 + 3,355,125 57
2,700M 9.25%, 2012 3,084,750 53
1,800M 7.875%, 2013 1,975,500 34
5,350M Hydrochem Industrial Services, Inc., 10.375%, 2007 5,376,750 92
1,000M IESI Corp., 10.25%, 2012 1,100,000 19
4,535M Kindercare Learning Centers, Inc., 9.5%, 2009 4,629,464 79
United Rentals, Inc.:
2,000M 9%, 2009 2,107,000 36
1,800M 6.5%, 2012 + 1,800,000 31
3,600M 7%, 2014 + 3,402,000 58
- ----------------------------------------------------------------------------------------------------------------------
37,605,589 644
- ----------------------------------------------------------------------------------------------------------------------
Telecommunications--.9%
4,000M Adelphia Business Solutions, Inc., 13%, 2003 ++ 910,000 16
6,050M E. Spire Communications, Inc., 13%, 2005 ++ 605 --
2,400M ICG Services, Inc., 10%, 2008 ++ ** 3,000 --
RCN Corp.:
9,000M 11.125%, 2007 ++ 4,185,000 72
300M 11%, 2008 ++ 139,500 2
5,500M Viatel, Inc., 12.5%, 2008 ++ ** 1,319 --
4,000M Worldwide Fiber, Inc., 12%, 2009 ++ 400 --
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Principal For Each
Amount $10,000 of
or Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Telecommunications (continued)
XO Communications, Inc.:
$7,000M 12.5%, 2006 ++ ** $8,750 $--
2,750M 9.45%, 2008 ++ ** 3,438 --
- ----------------------------------------------------------------------------------------------------------------------
5,252,012 90
- ----------------------------------------------------------------------------------------------------------------------
Transportation--.9%
2,700M General Maritime Corp., 10%, 2013 3,037,500 52
500M Great Lakes Dredge & Dock Corp., 7.75%, 2013 + 507,500 9
1,750M Overseas Shipholding Group, Inc., 8.25%, 2013 1,933,750 33
- ----------------------------------------------------------------------------------------------------------------------
5,478,750 94
- ----------------------------------------------------------------------------------------------------------------------
Utilities--.0%
5,500M AES Drax Energy, Ltd., 11.5%, 2010 ++ 55,000 1
- ----------------------------------------------------------------------------------------------------------------------
Wireless Communications--2.2%
5,000M Crown Castle International Corp., 9.375%, 2011 5,450,000 93
Triton Communications, LLC:
3,500M 8.75%, 2011 3,325,000 57
4,350M 9.375%, 2011 4,219,500 72
- ----------------------------------------------------------------------------------------------------------------------
12,994,500 222
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $539,455,721) 518,718,763 8,880
- ----------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--3.3%
Consumer Non-Durables--.0%
7,714 * Worldtex, Inc., 12%, 2004** 146,566 2
- ----------------------------------------------------------------------------------------------------------------------
Health Care--.0%
115 * Leiner Health Products, Inc., 9.625%, 2007** 1 --
- ----------------------------------------------------------------------------------------------------------------------
Media-Cable TV--3.3%
180,791 CSC Holdings, Inc., 11.125%, 2008, Series "M" 18,919,778 325
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Preferred Stocks (cost $18,900,896) 19,066,345 327
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--1.9%
U.S. Treasury Notes:
$5,500M 7.25%, 2004 5,629,338 96
5,000M 7%, 2006 5,594,535 96
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $10,630,317) 11,223,873 192
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS FUND FOR INCOME, INC.
March 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Shares or $10,000 of
Warrants Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--.7%
Automotive--.1%
37,387 * Safelite Glass Corp. - Class "B" + ** $299,096 $5
2,523 Safelite Realty Corp.** 25 --
- ----------------------------------------------------------------------------------------------------------------------
299,121 5
- ----------------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--.0%
25,200 * Worldtex, Inc.** 252 --
- ----------------------------------------------------------------------------------------------------------------------
Media-Cable TV--.2%
41,221 * Echostar Communications Corp. - Class "A" 1,349,988 23
- ----------------------------------------------------------------------------------------------------------------------
Telecommunications--.4%
5,805 * ICG Communications, Inc. 34,830 1
39,967 * NTL, Inc. 2,376,038 40
18,224 * World Access, Inc. 35 --
- ----------------------------------------------------------------------------------------------------------------------
2,410,903 41
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $9,544,403) 4,060,264 69
- ----------------------------------------------------------------------------------------------------------------------
WARRANTS--.0%
Aerospace/Defense--.0%
3,000 * DeCrane Aircraft Holdings, Inc. (expiring 9/30/08) + 30 --
- ----------------------------------------------------------------------------------------------------------------------
Automotive--.0%
Safelite Glass Corp.:
91,625 * Class "A" (expiring 9/29/06) + ** 916 --
61,084 * Class "B" (expiring 9/29/07) + ** 611 --
- ----------------------------------------------------------------------------------------------------------------------
1,527 --
- ----------------------------------------------------------------------------------------------------------------------
Media-Cable TV--.0%
22,950 * Diva Systems Corp. (expiring 3/1/08) + 230 --
54,020 * Loral Cyberstar, Inc. (expiring 12/26/06) 1,080 --
- ----------------------------------------------------------------------------------------------------------------------
1,310 --
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Warrants or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Telecommunications--.0%
11,500 * E. Spire Communications, Inc.
(expiring 11/1/05) + ** $-- $--
3,500 * GT Group Telecom, Inc. (expiring 2/1/10) + 2,625 --
5,600 * Powertel, Inc. (expiring 2/1/06)** 187,782 3
- ----------------------------------------------------------------------------------------------------------------------
190,407 3
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Warrants (cost $5,065,968) 193,274 3
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--3.7%
$12,500M ChevronTexaco Corp., .97%, 4/5/04 12,498,652 214
5,000M Du Pont (E.I.) de Nemours & Co., .98%, 4/7/04 4,999,183 86
General Electric Capital Corp.:
1,300M 1%, 4/16/04 1,299,458 22
1,200M 1.01%, 4/16/04 1,199,495 20
1,500M General Electric Co., 1%, 4/16/04 1,499,375 26
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $21,496,163) 21,496,163 368
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT
AGENCY OBLIGATIONS--2.6%
10,000M Fannie Mae, .96%, 4/15/04 9,996,265 171
5,000M Federal Home Loan Bank, .98%, 4/16/04 4,997,958 86
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term U.S. Government Agency Obligations
(cost $14,994,223) 14,994,223 257
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $620,087,691) 101.0% 589,752,905 10,096
Excess of Liabilities Over Other Assets (1.0) (5,624,029) (96)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $584,128,876 $10,000
======================================================================================================================
+ Security exempt from registration under Rule 144A of the Securities Act of 1933. See Note 4.
++ In default as to principal and/or interest payment
* Non-income producing
** Security valued at fair value (see Note 1A)
# Denotes a stepbond, a zero coupon bond that converts to a fixed interest rate at a designated
future date.
## Zero coupon bond reflects effective yield on the date of purchase.
See notes to financial statements
Statement of Assets and Liabilities
FIRST INVESTORS
March 31, 2004
- -----------------------------------------------------------------------------------------------------------------
CASH INVESTMENT
MANAGEMENT GOVERNMENT GRADE INCOME
- -----------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $175,698,175 $194,035,024 $175,011,258 $620,087,691
============ ============ ============ ============
At value (Note 1A) $175,698,175 $197,895,364 $188,553,679 $589,752,905
Cash 3,885,163 273,675 179,372 184,256
Receivables:
Interest and dividends 233,206 956,711 3,121,973 13,075,790
Shares sold -- 378,855 616,758 774,735
Investment securities sold -- 1,491,915 -- 508,750
Other assets 46,550 58,910 26,354 315,076
------------ ------------ ------------ ------------
Total Assets 179,863,094 201,055,430 192,498,136 604,611,512
------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased 5,795,733 1,035,865 -- 18,487,875
Dividends payable 10,278 79,656 99,026 819,502
Shares redeemed 211,273 372,436 146,228 633,698
Accrued advisory fees 73,954 107,912 103,178 382,895
Accrued shareholder servicing costs 58,722 41,087 36,179 112,631
Accrued directors' fees 1,500 1,500 1,170 4,000
Accrued distribution plan expenses 37 1,726 1,933 5,544
Accrued expenses 55,723 32,016 14,359 36,491
------------ ------------ ------------ ------------
Total Liabilities 6,207,220 1,672,198 402,073 20,482,636
------------ ------------ ------------ ------------
Net Assets $173,655,874 $199,383,232 $192,096,063 $584,128,876
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $173,655,874 $201,442,772 $183,607,941 $740,386,644
Undistributed net investment deficit -- (669,936) (1,614,718) (1,215,759)
Accumulated net realized loss on investments -- (5,249,944) (3,439,581) (124,707,223)
Net unrealized appreciation (depreciation)
in value of investments -- 3,860,340 13,542,421 (30,334,786)
------------ ------------ ------------ ------------
Total $173,655,874 $199,383,232 $192,096,063 $584,128,876
============ ============ ============ ============
Net Assets:
Class A $169,292,890 $181,358,605 $161,198,247 $543,190,560
Class B $ 4,362,984 $ 18,024,627 $ 30,897,816 $ 40,938,316
Shares outstanding (Note 6):
Class A 169,292,890 16,084,805 15,526,696 171,420,379
Class B 4,362,984 1,599,693 2,977,764 12,949,039
Net asset value and redemption price
per share--Class A $1.00* $11.28 $10.38 $3.17
============ ============ ============ ============
Maximum offering price per share--Class A
(Net asset value/.9425)** N/A $11.97 $11.01 $3.36
============ ============ ============ ============
Net asset value and offering price per
share--Class B (Note 6) $1.00 $11.27 $10.38 $3.16
============ ============ ============ ============
* Also maximum offering price per share.
** On purchases of $100,000 or more, the sales charge is reduced.
See notes to financial statements
Statement of Operations
FIRST INVESTORS
Six Months Ended March 31, 2004
- -----------------------------------------------------------------------------------------------------------------
CASH INVESTMENT
MANAGEMENT GOVERNMENT GRADE INCOME
- -----------------------------------------------------------------------------------------------------------------
Investment Income
Income:
Interest $ 1,001,361 $ 4,914,093 $5,059,282 $ 23,548,922
Dividends (Note 1F) -- -- 10,539 1,060,332
------------ ------------ ------------ ------------
Total income 1,001,361 4,914,093 5,069,821 24,609,254
------------ ------------ ------------ ------------
Expenses (Notes 1 and 3):
Advisory fees 446,652 1,002,437 678,789 2,082,910
Distribution plan expenses - Class A -- 227,048 188,452 797,306
Distribution plan expenses - Class B 10,181 95,444 151,245 197,982
Shareholder servicing costs 392,410 221,116 208,442 572,443
Registration fees 34,535 24,738 21,482 24,728
Professional fees 20,389 22,208 16,519 38,264
Reports to shareholders 25,233 11,189 14,996 34,566
Custodian fees 20,306 17,842 11,411 25,670
Other expenses 31,594 34,461 32,852 72,766
------------ ------------ ------------ ------------
Total expenses 981,300 1,656,483 1,324,188 3,846,635
Less: Expenses waived or assumed (341,432) (479,476) (212,474) --
Custodian fees paid indirectly (555) (1,546) (3,255) (2,914)
------------ ------------ ------------ ------------
Net expenses 639,313 1,175,461 1,108,459 3,843,721
------------ ------------ ------------ ------------
Net investment income 362,048 3,738,632 3,961,362 20,765,533
------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss) on
Investments (Note 2):
Net realized gain (loss) on investments -- (228,739) 209,701 (3,735,237)
Net unrealized appreciation of investments -- 287,367 2,169,974 24,099,339
------------ ------------ ------------ ------------
Net gain on investments -- 58,628 2,379,675 20,364,102
------------ ------------ ------------ ------------
Net Increase in Net Assets Resulting
from Operations $ 362,048 $ 3,797,260 $ 6,341,037 $ 41,129,635
============ ============ ============ ============
See notes to financial statements
Statement of Changes in Net Assets
FIRST INVESTORS
- -----------------------------------------------------------------------------------------------------------------------
CASH MANAGEMENT GOVERNMENT
--------------------------- ----------------------------
10/1/2003 to 10/1/2002 to 10/1/2003 to 10/1/2002 to
3/31/2004 9/30/2003 3/31/2004 9/30/2003
- ------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 362,048 $ 1,182,333 $ 3,738,632 $ 7,703,948
Net realized gain (loss) on investments -- -- (228,739) 8,408
Net unrealized appreciation (depreciation) of investments -- -- 287,367 (1,789,098)
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 362,048 1,182,333 3,797,260 5,923,258
------------ ------------ ------------ ------------
Dividends to Shareholders
Net investment income - Class A (362,048) (1,179,371) (4,096,128) (8,582,301)
Net investment income - Class B -- (2,962) (359,572) (801,350)
------------ ------------ ------------ ------------
Total dividends (362,048) (1,182,333) (4,455,700) (9,383,651)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 110,846,568 234,463,530 13,363,818 46,898,620
Reinvestment of dividends 356,491 1,159,375 3,484,903 7,221,886
Cost of shares redeemed (121,351,156) (248,896,616) (19,272,865) (35,011,833)
------------ ------------ ------------ ------------
(10,148,097) (13,273,711) (2,424,144) 47,648,556
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 1,595,199 5,714,577 1,247,103 10,300,873
Reinvestment of dividends -- 2,815 334,781 740,287
Cost of shares redeemed (3,036,942) (5,696,499) (4,394,843) (6,071,287)
------------ ------------ ------------ ------------
(1,441,743) 20,893 (2,812,959) 4,969,873
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions (11,589,840) (13,252,818) (5,237,103) 24,078,546
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (11,589,840) (13,252,818) (5,895,543) 20,618,153
Net Assets
Beginning of period 185,245,714 198,498,532 205,278,775 184,660,622
------------ ------------ ------------ ------------
End of period+ $173,655,874 $185,245,714 $199,383,232 $205,278,775
============ ============ ============ ============
+Includes undistributed net investment income (deficit) of $ -- $ -- $ (669,936) $ 47,132
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 110,846,568 234,463,530 1,186,518 4,098,534
Issued for dividends reinvested 356,491 1,159,375 309,675 633,021
Redeemed (121,351,156) (248,896,616) (1,711,486) (3,071,484)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding (10,148,097) (13,273,711) (215,293) 1,660,071
============ ============ ============ ============
Class B:
Sold 1,595,199 5,714,577 110,806 899,737
Issued for dividends reinvested -- 2,815 29,765 64,938
Redeemed (3,036,942) (5,696,499) (390,738) (533,219)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (1,441,743) 20,893 (250,167) 431,456
============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE INCOME
--------------------------- ----------------------------
10/1/2003 to 10/1/2002 to 10/1/2003 to 10/1/2002 to
3/31/2004 9/30/2003 3/31/2004 9/30/2003
- ------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 3,961,362 $ 7,055,455 $ 20,765,533 $ 40,172,419
Net realized gain (loss) on investments 209,701 (1,287,197) (3,735,237) (40,988,935)
Net unrealized appreciation of investments 2,169,974 7,336,387 24,099,339 110,648,829
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 6,341,037 13,104,645 41,129,635 109,832,313
------------ ------------ ------------ ------------
Dividends to Shareholders
Net investment income - Class A (3,838,150) (6,630,609) (19,215,980) (38,529,726)
Net investment income - Class B (664,533) (1,254,542) (1,283,529) (2,335,735)
------------ ------------ ------------ ------------
Total dividends (4,502,683) (7,885,151) (20,499,509) (40,865,461)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 26,077,037 54,335,625 32,357,660 74,169,454
Reinvestment of dividends 3,212,972 5,527,350 14,077,597 27,917,451
Cost of shares redeemed (13,272,919) (22,919,488) (31,670,963) (54,438,349)
------------ ------------ ------------ ------------
16,017,090 36,943,487 14,764,294 47,648,556
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 3,606,845 10,815,522 4,904,122 12,429,320
Reinvestment of dividends 580,171 1,092,655 890,883 1,486,015
Cost of shares redeemed (4,286,085) (4,647,711) (3,228,974) (5,406,924)
------------ ------------ ------------ ------------
(99,069) 7,260,466 2,566,031 8,508,411
------------ ------------ ------------ ------------
Net increase from share transactions 15,918,021 44,203,953 17,330,325 56,156,967
------------ ------------ ------------ ------------
Net increase in net assets 17,756,375 49,423,447 37,960,451 125,123,819
Net Assets
Beginning of period 174,339,688 124,916,241 546,168,425 421,044,606
------------ ------------ ------------ ------------
End of period+ $192,096,063 $174,339,688 $584,128,876 $546,168,425
============ ============ ============ ============
+Includes undistributed net investment deficit of $ (1,614,718) $ (1,073,397) $ (1,215,759) $ (1,481,783)
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 2,545,677 5,422,036 10,246,335 25,912,750
Issued for dividends reinvested 313,568 549,544 4,460,150 9,743,823
Redeemed (1,296,403) (2,282,798) (10,038,361) (19,071,100)
------------ ------------ ------------ ------------
Net increase in Class A shares outstanding 1,562,842 3,688,782 4,668,124 16,585,473
============ ============ ============ ============
Class B:
Sold 352,457 1,080,259 1,560,818 4,363,332
Issued for dividends reinvested 56,647 108,648 282,793 517,968
Redeemed (419,343) (463,573) (1,027,302) (1,892,570)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (10,239) 725,334 816,309 2,988,730
============ ============ ============ ============
See notes to financial statements
Notes to Financial Statements
March 31, 2004
1. Significant Accounting Policies--First Investors Cash Management Fund,
Inc. ("Cash Management Fund"), First Investors Government Fund, Inc.
("Government Fund"), First Investors Investment Grade Fund ("Investment
Grade Fund"), a series of First Investors Series Fund ("Series Fund"), and
First Investors Fund For Income, Inc. ("Income Fund") are registered under
the Investment Company Act of 1940 (the "1940 Act") as diversified,
open-end management investment companies. Each Fund accounts separately for
its assets, liabilities and operations of the Fund. Series Fund offers four
additional series which are not included in this report. The objective of
each Fund 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.
Income Fund primarily seeks high current income and secondarily seeks
capital appreciation.
A. Security Valuation--The Cash Management Fund values its portfolio
securities in accordance with the amortized cost method of valuation under
Rule 2a-7 under the 1940 Act. Amortized cost is an approximation of market
value of an instrument, whereby the difference between its acquisition cost
and market value at maturity is amortized on a straight-line basis over the
remaining life of the instrument. The effect of changes in the market value
of a security as a result of fluctuating interest rates is not taken into
account and thus the amortized cost method of valuation may result in the
value of a security being higher or lower than its actual market value.
With respect to each of the other Funds, except as provided below, a
security listed or traded on an exchange or the Nasdaq Stock Market is
valued at its last sale price on the exchange or market where the security
is principally traded, and lacking any sales, the security is valued at the
mean between the closing bid and asked prices. Securities traded in the
over-the-counter ("OTC") market (including securities listed on exchanges
whose primary market is believed to be OTC) are valued at the mean between
the last bid and asked prices based upon quotes furnished by a market maker
for such securities. Securities may also be priced by a pricing service
approved by the applicable Fund's Board of Directors/Trustees. The pricing
service considers security type, rating, market condition and yield data as
well as market quotations, prices provided by market makers and other
available information in determining value. Short-term debt
securities that mature in 60 days or less are valued at amortized cost. 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 Fund's Board of
Directors/Trustees. At March 31, 2004, the Income Fund held eighteen
securities that were fair valued by its Valuation Committee with an
aggregate value of $836,149 representing .1% of the Fund's net assets.
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,
federal income taxes.
At September 30, 2003, capital loss carryovers were as follows:
Year Capital Loss Carryovers Expire
----------------------------------------------------------------------------------------------------------------
Fund Total 2004 2005 2007 2008 2009 2010 2011
- ---- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Government $3,420,990 $ 204,508 $ -- $ -- $1,017,364 $2,144,197 $ -- $ 54,921
Investment
Grade 2,150,642 -- -- -- -- 1,715,940 27,419 407,283
Income 94,718,360 4,514,945 3,055,280 842,581 1,832,458 13,810,649 18,563,112 52,099,335
C. Distributions to Shareholders--The Cash Management Fund declares
distributions daily and pays distributions monthly. Distributions are
declared from the total of net investment income plus or minus all realized
short-term gains and losses on investments. Dividends from net investment
income of each of the other Funds are generally declared daily and paid
monthly and distributions from net realized capital gains, if any, are
generally 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 mortgage-backed securities, capital loss carryforwards and
post-October capital losses.
D. 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.
Notes to Financial Statements (continued)
March 31, 2004
E. Expense Allocation--Expenses directly charged or attributable to a Fund
are paid from the assets of that Fund. General expenses of Series Fund are
allocated among and charged to the assets of each Fund in Series 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.
F. Other--Security transactions are accounted for on the date the
securities are purchased or sold. Cost is determined, and gains and losses
are based, on the identified cost basis for both financial statement and
federal income tax purposes. Dividend income is recorded on the ex-dividend
date. Interest income and estimated expenses are accrued daily. Bond
discounts and premiums are accreted or amortized using the interest method.
For the six months ended March 31, 2004, the Bank of New York, custodian
for the Funds, has provided total credits in the amount of $8,270 against
custodian charges based on the uninvested cash balances of the Funds.
2. Security Transactions--For the six months ended March 31, 2004,
purchases and sales (including pay-downs on Government Fund) of securities
and long-term U.S. Government obligations (excluding short-term U.S.
Government obligations and short-term securities) were as follows:
Long-Term U.S.
Securities Government Obligations
--------------------------- ---------------------------
Cost of Proceeds Cost of Proceeds
Fund Purchases from Sales Purchases from Sales
- ---- ------------ ------------ ------------ ------------
Government $ -- $ -- $ 65,217,024 $ 66,336,232
Investment Grade 18,050,506 6,998,404 4,352,095 34,177
Income 112,783,860 86,333,161 -- --
At March 31, 2004, aggregate cost and net unrealized appreciation
(depreciation) of securities for federal income tax purposes were as
follows:
Net
Gross Gross Unrealized
Aggregate Unrealized Unrealized Appreciation
Fund Cost Appreciation Depreciation (Depreciation)
- ---- ------------ ------------ ------------ ------------
Government $194,035,024 $ 3,998,183 $ 137,843 $ 3,860,340
Investment Grade 176,808,259 12,847,791 1,102,371 11,745,420
Income 622,518,743 37,915,731 70,681,569 (32,765,838)
3. Advisory Fee and Other Transactions With Affiliates--Certain officers
and directors/trustees of the Funds are officers and directors of the
Funds' investment
adviser, First Investors Management Company, Inc. ("FIMCO"), its
underwriter, First Investors Corporation ("FIC"), its transfer agent,
Administrative Data Management Corp. ("ADM") and/or First Investors Federal
Savings Bank ("FIFSB"), custodian of the Funds' retirement accounts.
Directors/trustees of the Funds 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, 2004, total directors/trustees fees accrued by the
Funds amounted to $22,322.
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. In
addition, FIMCO has voluntarily waived $341,432 in advisory fees to limit
the Fund's overall expense ratio to .70% on Class A shares and 1.12% on
Class B shares.
Government Fund--1% on the first $200 million of the Fund's average daily
net assets, .75% on the next $300 million, declining by .03% on each $250
million thereafter, down to .66% on average daily net assets over $1
billion. In addition, FIMCO has voluntarily waived $479,476 in advisory
fees to limit the Fund's overall expense ratio to 1.10% on Class A shares
and 1.85% on Class B shares.
Investment Grade Fund--.75% on the first $300 million of the Fund's average
daily net assets, .72% on the next $200 million, .69% on the next $250
million, and .66% on average daily net assets over $750 million. In
addition, FIMCO has voluntarily waived $212,474 in advisory fees to limit
the Fund's overall expense ratio to 1.10% on Class A shares and 1.85% on
Class B shares.
Income Fund--.75% on the first $250 million of the Fund's average daily net
assets, declining by .03% on each $250 million thereafter, down to .66% on
average daily net assets over $750 million.
For the six months ended March 31, 2004, total advisory fees accrued to
FIMCO by the Funds were $4,210,788 of which $1,033,382 was waived as noted
above.
For the six months ended March 31, 2004, FIC, as underwriter, received
$2,358,462 in commissions from the sale of shares of the Funds after
allowing $24,904 to other dealers. Shareholder servicing costs included
$891,930 in transfer agent fees accrued to ADM and $200,744 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 on an
annual basis, payable monthly. Each Fund, including the Cash Management
Fund, is authorized to pay FIC
Notes to Financial Statements (continued)
March 31, 2004
a fee up to 1% of the average daily net assets of the Class B shares on an
annual basis, payable monthly. 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, 2004,
the fees paid under the distribution plans by Government Fund and
Investment Grade Fund were limited to .25% on Class A shares and 1% on
Class B shares. The distribution fees paid by Cash Management Fund were
limited to .75% on Class B shares.
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. At March 31, 2004,
Cash Management Fund held seven 144A securities with an aggregate value of
$21,870,906 representing 12.6% of the Fund's net assets, Investment Grade
Fund held nine 144A securities with an aggregate value of $12,019,813
representing 6.3% of the Fund's net assets and Income Fund held thirty-one
144A securities with an aggregate value of $79,901,358 representing 13.7%
of the Fund's net assets. These securities are valued as set forth in Note
1A.
5. High Yield Credit Risk--The investments of Income Fund 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. Capital--Cash Management Fund sell two classes of shares, Class A and
Class B, each without an initial sales charge. Class B shares may only be
acquired through an exchange of Class B shares from another First Investors
eligible fund or through the reinvestment of dividends on Class B shares
and are generally subject to a contingent deferred sales charge at the rate
of 4% in the first year and declining to 0% over a six-year period, which
is payable to FIC as underwriter of the Funds. Each of the other Funds also
sells two classes of shares, Class A and Class B, each with 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 the net assets of
each class. Of the 5,000,000,000 $.01
par value shares originally authorized by the Cash Management Fund, the
Fund has designated 2,500,000,000 shares as Class A and 2,500,000,000
shares as Class B. Of the 1,000,000,000 $.01 par value shares originally
authorized by the Government Fund and of the 1,000,000,000 $1.00 par value
shares originally authorized by the Income Fund, each Fund has designated
500,000,000 shares as Class A and 500,000,000 shares as Class B. Series
Fund, of which Investment Grade Fund is a series, has established an
unlimited number of no par value shares of beneficial interest for both
Class A and Class B shares.
Financial Highlights
FIRST INVESTORS
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
------------------------------------------------------------------------------------------------------------------
Less Distributions
Investment Operations from
---------------------------------------- -------------------------
Net Asset Net Realized Net Asset
Value, Net and Unrealized Total from Net Net Value,
Beginning Investment Gain (Loss) on Investment Investment Realized Total End of
of Period Income Investments Operations Income Gain Distributions Period
- ---------------------------------------------------------------------------------------------------------------------------------
CASH MANAGEMENT FUND
- --------------------
Class A
- -------
1999(a) $ 1.00 $.032 $ -- $.032 $.032 $ -- $.032 $ 1.00
2000 1.00 .054 -- .054 .054 -- .054 1.00
2001 1.00 .050 -- .050 .050 -- .050 1.00
2002 1.00 .014 -- .014 .014 -- .014 1.00
2003 1.00 .006 -- .006 .006 -- .006 1.00
2004(b) 1.00 .002 -- .002 .002 -- .002 1.00
Class B
- -------
1999(a) 1.00 .027 -- .027 .027 -- .027 1.00
2000 1.00 .046 -- .046 .046 -- .046 1.00
2001 1.00 .040 -- .040 .040 -- .040 1.00
2002 1.00 .006 -- .006 .006 -- .006 1.00
2003 1.00 .001 -- .001 .001 -- .001 1.00
2004(b) 1.00 -- -- -- -- -- -- 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT FUND
- ---------------
Class A
- -------
1999 $11.49 $ .63 $(.58) $ .05 $ .61 $ -- $ .61 $10.93
2000 10.93 .65 .02 .67 .66 -- .66 10.94
2001 10.94 .64 .48 1.12 .65 -- .65 11.41
2002 11.41 .59 .09 .68 .59 -- .59 11.50
2003 11.50 .54 (.19) .35 .54 -- .54 11.31
2004(b) 11.31 .26 (.04) .22 .25 -- .25 11.28
Class B
- -------
1999 11.48 .54 (.57) (.03) .53 -- .53 10.92
2000 10.92 .57 .02 .59 .58 -- .58 10.93
2001 10.93 .55 .49 1.04 .56 -- .56 11.41
2002 11.41 .50 .09 .59 .51 -- .51 11.49
2003 11.49 .45 (.19) .26 .45 -- .45 11.30
2004(b) 11.30 .22 (.04) .18 .21 -- .21 11.27
- ---------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
------------------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets** Waived or Assumed
----------------------- -----------------------
Net Net Portfolio
Total Net Assets Investment Investment Turnover
Return* End of Period Expenses Income Expenses Income Rate
(%) (in millions) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------
CASH MANAGEMENT FUND
- --------------------
Class A
- -------
1999(a) 3.29 $158 .80+ 4.33+ 1.14+ 3.99+ --
2000 5.50 182 .80 5.36 1.08 5.08 --
2001 4.63 204 .80 4.52 .99 4.33 --
2002 1.38 193 .80 1.38 .90 1.28 --
2003 .62 179 .78 .62 .97 .43 --
2004(b) .21 169 .70+ .42+ 1.08+ .04+ --
Class B
- -------
1999(b) 2.72 2 1.55+ 3.58+ 1.89+ 3.24+ --
2000 4.72 2 1.55 4.61 1.83 4.33 --
2001 3.85 4 1.55 3.77 1.74 3.58 --
2002 .63 6 1.55 .63 1.65 .53 --
2003 .05 6 1.34 .06 1.53 (.13) --
2004(b) -- 4 1.12+ -- 1.50+ (.38)+ --
- ------------------------------------------------------------------------------------------------------------------
GOVERNMENT FUND
- ---------------
Class A
- -------
1999 .50 $140 1.19 5.58 1.57 5.20 99
2000 6.38 124 1.12 6.05 1.55 5.62 26
2001 10.49 137 1.10 5.70 1.53 5.27 59
2002 6.16 168 1.10 5.21 1.56 4.75 75
2003 3.08 184 1.10 4.69 1.58 4.21 65
2004(b) 2.01 181 1.10+ 4.58+ 1.58+ 4.10+ 33
Class B
- -------
1999 (.25) 3 1.93 4.84 2.31 4.46 99
2000 5.56 3 1.87 5.30 2.30 4.87 26
2001 9.77 6 1.85 4.95 2.28 4.52 59
2002 5.29 16 1.85 4.46 2.31 4.00 75
2003 2.33 21 1.85 3.94 2.33 3.46 65
2004(b) 1.63 18 1.85+ 3.83+ 2.33+ 3.35+ 33
- ------------------------------------------------------------------------------------------------------------------
Financial Highlights (continued)
FIRST INVESTORS
- ---------------------------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
------------------------------------------------------------------------------------------------------------------
Less Distributions
Investment Operations from
---------------------------------------- -------------------------
Net Asset Net Realized Net Asset
Value, Net and Unrealized Total from Net Net Value,
Beginning Investment Gain (Loss) on Investment Investment Realized Total End of
of Period Income Investments Operations Income Gain Distributions Period
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE FUND
- ---------------------
Class A
- -------
1999 $10.53 $ .57 $(.79) $(.22) $ .58 $.07 $ .65 $ 9.66
2000 9.66 .60 (.14) .46 .58 .01 .59 9.53
2001 9.53 .61 .41 1.02 .63 -- .63 9.92
2002++ 9.92 .55 .07 .62 .58 -- .58 9.96
2003 9.96 .51 .35 .86 .54 -- .54 10.28
2004(b) 10.28 .24 .12 .36 .26 -- .26 10.38
Class B
- -------
1999 10.54 .50 (.79) (.29) .51 .07 .58 9.67
2000 9.67 .54 (.14) .40 .52 .01 .53 9.54
2001 9.54 .54 .41 .95 .56 -- .56 9.93
2002++ 9.93 .48 .06 .54 .51 -- .51 9.96
2003 9.96 .43 .36 .79 .47 -- .47 10.28
2004(b) 10.28 .19 .14 .33 .23 -- .23 10.38
- ---------------------------------------------------------------------------------------------------------------------------------
INCOME FUND
- -----------
Class A
- -------
1999 $ 4.17 $ .40 $ (.27) $ .13 $ .38 $ -- $ .38 $ 3.92
2000 3.92 .35 (.26) .09 .38 -- .38 3.63
2001 3.63 .33 (.68) (.35) .35 -- .35 2.93
2002++ 2.93 .26 (.29) (.03) .26 -- .26 2.64
2003 2.64 .24 .41 .65 .24 -- .24 3.05
2004(b) 3.05 .12 .11 .23 .11 -- .11 3.17
Class B
- -------
1999 4.16 .37 (.27) .10 .36 -- .36 3.90
2000 3.90 .33 (.26) .07 .36 -- .36 3.61
2001 3.61 .31 (.67) (.36) .33 -- .33 2.92
2002++ 2.92 .24 (.30) (.06) .23 -- .23 2.63
2003 2.63 .23 .41 .64 .22 -- .22 3.05
2004(b) 3.05 .11 .10 .21 .10 -- .10 3.16
- ---------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
------------------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets** Waived or Assumed
----------------------- -----------------------
Net Net Portfolio
Total Net Assets Investment Investment Turnover
Return* End of Period Expenses Income Expenses Income Rate
(%) (in millions) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE FUND
- ---------------------
Class A
- -------
1999 (2.21) $ 49 1.10 5.70 1.38 5.42 18
2000 5.03 47 1.10 6.36 1.35 6.11 62
2001 10.93 65 1.10 6.22 1.28 6.04 21
2002++ 6.48 102 1.10 5.63 1.33 5.40 13
2003 8.94 144 1.10 4.85 1.35 4.60 6
2004(b) 3.57 161 1.10+ 4.50+ 1.34+ 4.26+ 4
Class B
- -------
1999 (2.90) 7 1.80 5.00 2.08 4.72 18
2000 4.31 8 1.80 5.66 2.05 5.41 62
2001 10.15 13 1.84 5.48 2.02 5.30 21
2002++ 5.61 23 1.85 4.88 2.08 4.65 13
2003 8.17 31 1.85 4.10 2.10 3.85 6
2004(b) 3.21 31 1.85+ 3.75+ 2.09+ 3.51+ 4
- ------------------------------------------------------------------------------------------------------------------
INCOME FUND
- -----------
Class A
- -------
1999 3.13 $389 1.29 9.71 N/A N/A 28
2000 2.46 501 1.29 9.55 N/A N/A 14
2001 (10.20) 418 1.30 9.81 N/A N/A 18
2002++ (1.52) 397 1.35 8.90 N/A N/A 20
2003 25.78 509 1.34 8.38 N/A N/A 31
2004(b) 7.75 543 1.30+ 7.32+ N/A N/A 16
Class B
- -------
1999 2.29 14 1.99 9.01 N/A N/A 28
2000 1.81 23 1.99 8.85 N/A N/A 14
2001 (10.62) 22 2.00 9.11 N/A N/A 18
2002++ (2.33) 24 2.05 8.20 N/A N/A 20
2003 25.24 37 2.04 7.68 N/A N/A 31
2004(b) 7.01 41 2.00+ 6.62+ N/A N/A 16
- ------------------------------------------------------------------------------------------------------------------
* Calculated without sales charges.
** Net of expenses waived or assumed (Note 3).
+ Annualized
++ Prior to October 1, 2001, the Income Fund and the Investment Grade
Fund did not amortize premiums on debt securities. The per share data
and ratios prior to October 1, 2001 have not been restated. The
cumulative effect of this accounting change had no impact on total net
assets of the Funds.
(a) For the period January 1, 1999 to September 30, 1999.
(b) For the period October 1, 2003 to March 31, 2004.
See notes to financial statements
Independent Auditors' Report
To the Shareholders and Boards of Directors/Trustees of
First Investors Cash Management Fund, Inc.
First Investors Government Fund, Inc.
First Investors Investment Grade Fund
First Investors Fund For Income, Inc.
We have audited the accompanying statement of assets and liabilities,
including the portfolios of investments, of the First Investors Cash
Management Fund, Government Fund, Investment Grade Fund (a series of First
Investors Series Fund) and Fund For Income as of March 31, 2004, the
related statement of operations, the statement 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 auditing standards generally
accepted in the United States of America. 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. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of March 31, 2004,
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.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of First Investors Cash Management Fund, Government Fund, Investment Grade
Fund and Fund For Income as of March 31, 2004, 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
Philadelphia, Pennsylvania
May 3, 2004
FIRST INVESTORS TAXABLE BOND AND MONEY MARKET FUNDS
Directors/Trustees
- ------------------------------------
Robert M. Grohol
Glenn O. Head
Kathryn S. Head
Larry R. Lavoie
Rex R. Reed
Herbert Rubinstein
James M. Srygley
John T. Sullivan
Robert F. Wentworth
Officers
- ------------------------------------
Kathryn S. Head
President
George V. Ganter
Vice President
Michael J. O'Keefe
Vice President
Clark D. Wagner
Vice President
Joseph I. Benedek
Treasurer
Mark S. Spencer
Assistant Treasurer
Carol Lerner Brown
Assistant Secretary
FIRST INVESTORS TAXABLE BOND AND MONEY MARKET FUNDS
Shareholder Information
- ------------------------------------
Investment Adviser
First Investors Management Company, Inc.
95 Wall Street
New York, NY 10005
Underwriter
First Investors Corporation
95 Wall Street
New York, NY 10005
Custodian
The Bank of New York
One Wall Street
New York, NY 10286
Transfer Agent
Administrative Data Management Corp.
581 Main Street
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
1818 Market Street
Philadelphia, PA 19103
The Cash Management Fund is a money market fund and seeks to maintain a
stable net asset value of $1.00 per share. However, there can be no
assurance that the Fund will be able to do so or achieve its investment
objective. An investment in the Fund is neither insured nor guaranteed by
the Federal Deposit Insurance Corporation (FDIC) or any other U.S.
government agency.
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 800-423-4026. The Funds will ensure
that separate reports are sent to any shareholder who subsequently changes
his or her mailing address.
This report is authorized for distribution only to existing shareholders,
and, if given to prospective shareholders, must be accompanied or preceded
by the Funds' prospectus.
The Statement of Additional Information includes additional information
about the Funds' directors/trustees and is available, without charge, upon
request by calling 800-423-4026.
Item 2. Code of Ethics
The Registrant's Board of Directors/Trustees ("Board") has
adopted a Code of Ethics that applies to the First Investors Funds'
("Funds") principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the Funds or a third party. The Code of Ethics is attached to this
report as Exhibit A.
During the period of the report, there have been no amendments to the
Code of Ethics or waivers, implicit or otherwise, from its provisions.
Item 3. Audit Committee Financial Expert
Not applicable to Semi-Annual Report
Item 4. Principal Accountant Fees and Services
Not applicable to Semi-Annual Report
Item 5. Audit Committee of Listed Registrants
Not applicable to Semi-Annual Report
Item 6. Schedule of Investments
Schedule of Investments is included as part of
the Report to Stockholders filed under Item 1
of this Form.
Item 7. Disclosure of Proxy Voting Policies & Procedures for
Closed-End Management Investment Companies
Not applicable to the Registrant
Item 8. Purchases of Equity Securities by Closed-End Management
Investment Companies and Affiliated Purchasers
Not applicable to the Registrant
Item 9. Submission of Matters to a Vote of Security Holders
Not applicable to the Registrant for this filing
Item 10. 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 significant changes in the Registrant's internal
controls or in other factors that could significantly affect these controls
subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Item 11. Exhibits
(a) Code of Ethics - Filed herewith
(b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002 - Filed herewith
(c) 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 have duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
First Investors Cash Management Fund, Inc.
First Investors Government Fund, Inc.
First Investors Series Fund
First Investors Fund For Income, Inc.
(Registrant)
By /S/ KATHRYN S. HEAD
Kathryn S. Head
President and Principal Executive Officer
Date: June 1, 2004
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 Cash Management Fund, Inc.
First Investors Government Fund, Inc.
First Investors Series Fund
First Investors Fund For Income, Inc.
(Registrant)
By /S/ JOSEPH I. BENEDEK
Joseph I. Benedek
Treasurer and Principal Financial Officer
Date: June 1, 2004