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 811-3690; 811-5690; 811-2923;
811-4927; 811-4623; 811-3843
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
FIRST INVESTORS SERIES FUND
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
EXECUTIVE INVESTORS TRUST
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, 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 Management Company, Inc.
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: DECEMBER 31, 2004
DATE OF REPORTING PERIOD: DECEMBER 31, 2004
Item 1. Reports to Stockholders
The Annual Report to Stockholders follows
[Logo: "FIRST INVESTORS"]
The words "TAX EXEMPT FUNDS" in a rectangular blue box
across the top of the page.
TAX-EXEMPT MONEY MARKET
INSURED INTERMEDIATE TAX EXEMPT
INSURED TAX EXEMPT
INSURED TAX EXEMPT II
SINGLE STATE INSURED TAX FREE
ARIZONA MARYLAND NEW YORK
CALIFORNIA MASSACHUSETTS NORTH CAROLINA
COLORADO MICHIGAN OHIO
CONNECTICUT MINNESOTA OREGON
FLORIDA MISSOURI PENNSYLVANIA
GEORGIA NEW JERSEY VIRGINIA
ANNUAL REPORT
December 31, 2004
Portfolio Manager's Letter
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
Dear Investor:
This is the annual report for the First Investors Tax-Exempt Money Market
Fund for the year ended December 31, 2004. During the year, the Fund's
return on a net asset value basis was 0.5% for Class A shares (100% of
which was free from federal income taxes) and 0% for Class B shares. The
Fund maintained a $1.00 net asset value per share for each class of shares
throughout the year.
The Fund's performance was largely driven by the interest rate
environment. Municipal money market yields remained relatively stable
during the first quarter of 2004, before rising steadily through the rest
of the year. The Federal Reserve embarked on its long-anticipated
tightening cycle late in the second quarter and raised its target federal
funds rate five times during the year. Despite remaining at fairly low
absolute levels, short-term municipal rates nearly doubled in 2004.
The Fund regularly traded into and out of variable rate securities in
response to and in anticipation of directional moves in variable rate
resets. Early in the year, the Fund reduced its variable rate exposure and
maintained an underweight position in variables throughout the first half,
which helped performance, as the yields on fixed rate securities remained
higher than those on variable rates. However, fixed rate bonds bought
during the first quarter detracted from performance during the second half
of the year as tax-free rates rose steadily and sharply. In December, the
Fund reduced its variable rate security exposure to decrease yield
volatility and lock in yield as the spread between variable rate resets
and fixed rate yields had widened and was expected to widen further.
Money market funds continue to be among the most conservative investment
vehicles available. However, there can be no assurance that they will be
able to maintain a stable net asset value of $1.00 per share. Money market
mutual funds are not insured or guaranteed by the Federal Deposit Insurance
Corporation (FDIC) or any other government agency.
Portfolio Manager's Letter (continued)
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ MICHAEL J. O'KEEFE
Michael J. O'Keefe
Vice President
and Portfolio Manager
January 31, 2005
Understanding Your Fund's Expenses
FIRST INVESTORS TAX EXEMPT FUNDS
As a mutual fund shareholder, you incur two types of costs: (1) transaction
costs, including a sales charge (load) on purchase payments (on Class A
shares only), a contingent deferred sales charge on redemptions (on Class B
shares only); and (2) ongoing costs, including advisory fees; distribution
and service fees (12b-1); and other expenses. This example is intended to
help you understand your ongoing costs (in dollars) of investing in the
Funds and to compare these costs with the ongoing costs of investing in
other mutual funds.
The examples are based on an investment of $1,000 in each Fund at the
beginning of the period, July 1, 2004, and held for the entire six-month
period ended December 31, 2004. The calculations assume that no shares
were bought or sold during the period. Your actual costs may have been
higher or lower, depending on the amount of your investment and the timing
of any purchases or redemptions.
Actual Expenses Example:
These amounts help you to estimate the actual expenses that you paid over
the period. The "Ending Account Value" shown is derived from the Fund's
actual return, and the "Expenses Paid During Period" shows the dollar
amount that would have been paid by an investor who started with $1,000 in
the Fund. You may use the information here, together with the amount you
invested, to estimate the expenses that you paid over the period.
To estimate the expense you paid on your account during this period,
simply divide your ending account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.60), then multiply the result by the
number given for your Fund under the heading "Expenses Paid During
Period".
Hypothetical Expenses Example:
These amounts in the table provide information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio
for Class A and Class B shares, and an assumed rate of return of 5% per
year before expenses, which is not the Fund's actual return. The
hypothetical account values and expenses may not be used to estimate the
actual ending account balance or expenses you paid for the period. You may
use this information to compare the ongoing costs of investing in the Fund
and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the table are meant to highlight and
help you compare your ongoing costs only and do not reflect any transaction
costs, such as front-end or contingent deferred sales charges (loads).
Therefore, the hypothetical expense example is useful in comparing ongoing
costs only and will not help you determine the relative total costs of
owning different funds. In addition, if these transaction costs were
included, your costs would have been higher.
Fund Expenses
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,003.47 $3.53
Hypothetical (5% return before expenses) $1,000.00 $1,021.62 $3.56
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,000.00 $6.99
Hypothetical (5% return before expenses) $1,000.00 $1,018.15 $7.05
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .70% for Class A
shares and 1.39% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half
year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
TOP TEN STATES
(BAR CHART: Top Ten States)
New Jersey 12.4%
Georgia 9.7%
Texas 9.3%
Ohio 9.1%
Kentucky 7.9%
Nebraska 6.0%
Florida 5.8%
Colorado 5.1%
District of Columbia 4.5%
Wisconsin 4.3%
Portfolio holdings and allocations are subject to change.
Percentages are as of December 31, 2004, and are based on
the total market value of investments.
Portfolio of Investments
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL INVESTMENTS--99.0%
Alabama--3.6%
$500M Mobile Industrial Dev. Board Facs. Rev. Bonds,
VR, 2% (CO; Kimberly-Clark Corp.) $500,000 $357
- ----------------------------------------------------------------------------------------------------------------------
Arizona--3.8%
300M Casa Grande Industrial Dev. Auth. Multi-Family Hsg.
Rev. Bonds, VR, 2.03% (Fannie Mae Liquidity Fac.) 300,000 214
225M Lake Havasu City Excise Tax Rev. Bonds, 4%,
6/1/2005 (AMBAC Ins.) 227,250 162
- ----------------------------------------------------------------------------------------------------------------------
527,250 376
- ----------------------------------------------------------------------------------------------------------------------
Colorado--5.0%
700M Colorado Hsg. & Fin. Auth. Rev. Bonds, VR, 2%
(Fannie Mae Collateral Agreement) 700,000 500
- ----------------------------------------------------------------------------------------------------------------------
Connecticut--2.1%
300M Stratford GO Bonds, 2 1/2%, 2/15/2005 (FSA Ins.) 300,428 214
- ----------------------------------------------------------------------------------------------------------------------
District of Columbia--4.4%
315M District of Columbia Rev. Bonds Catholic Univ.
of America, 5 1/2%, 10/1/2005 (AMBAC Ins.) 323,891 231
300M District of Columbia Rev. Bonds National Academy
of Science, 4%, 1/1/2005 (AMBAC Ins.) 300,000 213
- ----------------------------------------------------------------------------------------------------------------------
623,891 444
- ----------------------------------------------------------------------------------------------------------------------
Florida--5.7%
200M Broward County School Board COP, 4 3/4%, 7/1/2005
(AMBAC Ins.) 202,973 145
600M Hillsborough County Aviation Auth. Rev., VR, 2%
(LOC; General Electric Capital Corp.) 600,000 428
- ----------------------------------------------------------------------------------------------------------------------
802,973 573
- ----------------------------------------------------------------------------------------------------------------------
Georgia--9.6%
300M Fulton County Hsg. Auth. Multi-Family Hsg. Rev.,
VR, 2% (LOC; Fannie Mae) 300,000 214
650M Roswell Housing Auth. Multi-Family, VR, 2%
(Fannie Mae Liquidity Fac.) 650,000 464
400M Whitfield County Residential Care Facs. Auth.
Rev. Bonds, VR, 2% (LOC; Wachovia Bank) 400,000 286
- ----------------------------------------------------------------------------------------------------------------------
1,350,000 964
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Kentucky--7.9%
$600M Fort Mitchell League of Cities Funding Lease Prog.
Rev. Bonds, VR, 2.01% (LOC; U.S. Bank, NA) $600,000 $428
500M Newport League of Cities Lease Rev. Bonds,
VR, 2.01% (LOC; U.S. Bank, NA) 500,000 357
- ----------------------------------------------------------------------------------------------------------------------
1,100,000 785
- ----------------------------------------------------------------------------------------------------------------------
Maine--2.3%
320M University of Maine System Rev. Bonds, 4%,
3/1/2005 (FSA Ins.) 321,346 230
- ----------------------------------------------------------------------------------------------------------------------
Massachusetts--1.8%
250M Massachusetts State Water Resource Auth., 5%,
8/1/2005 (FSA Ins.) 254,322 182
- ----------------------------------------------------------------------------------------------------------------------
Nebraska--6.0%
Nebraska Public Power District Rev. Bonds
Power Supply System:
100M Series "A", 5%, 1/1/2005* (U.S. Govt. Securities)
(MBIA Ins.) 101,000 72
230M Series "A", 5 1/4%, 1/1/2005* (U.S. Govt. Securities)
(MBIA Ins.) 232,300 166
500M Series "C", 4 5/8%, 1/1/2005 (U.S. Govt. Securities) 500,000 357
- ----------------------------------------------------------------------------------------------------------------------
833,300 595
- ----------------------------------------------------------------------------------------------------------------------
New Jersey--12.3%
700M New Jersey Health Care Facs. Fing. Auth. Rev. Bonds,
VR, 1.95% (LOC; JPMorgan Chase & Co.) 700,000 500
500M New Jersey State Transportation Trust Fund Auth.
Rev. Bonds, 6%, 6/15/2005 (MBIA Ins.) 510,007 364
500M New Jersey Wastewater Treatment Trust, 6 1/4%,
5/15/2005 (MBIA Ins.) 507,992 363
- ----------------------------------------------------------------------------------------------------------------------
1,717,999 1,227
- ----------------------------------------------------------------------------------------------------------------------
New York--2.9%
200M New York City GO Bonds, 6 1/2%, 8/1/2005*
(U.S Govt. Securities) 206,973 148
200M New York State Dorm Auth. Lease Rev. Bonds, 6%,
7/1/2005 (AMBAC Ins.) 204,010 146
- ----------------------------------------------------------------------------------------------------------------------
410,983 294
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
North Carolina--1.6%
$215M Greenville Combined Enterprise System Rev. Bonds,
4 1/4%, 9/1/2005 (FSA Ins.) $218,097 $156
- ----------------------------------------------------------------------------------------------------------------------
Ohio--9.0%
800M Lucas County Facs. Improvement Rev. Bonds, VR,
1.99% (LOC; Fifth Third Bank) 800,000 571
468M Warren County Health Care Facs. Rev. Bonds, VR,
2.03% (LOC; Fifth Third Bank) 468,000 333
- ----------------------------------------------------------------------------------------------------------------------
1,268,000 904
- ----------------------------------------------------------------------------------------------------------------------
Tennessee--1.4%
200M Clarksville Public Bldg. Auth. Rev. Bonds Municipal
Bldg. Fund, VR, 2.15% (LOC; Bank of America) 200,000 143
- ----------------------------------------------------------------------------------------------------------------------
Texas--9.2%
250M Houston Independent School District Maintenance
GO Tax Notes, 5%, 7/15/2005 (FSA Ins.) 254,056 181
285M Tarrant County Housing Rev. Bonds, VR, 2%
(Fannie Mae Collateral Agreement) 285,000 203
500M Texas State Turnpike Auth. Dallas North Tollway
Rev. Bonds, 6.3%, 1/1/2005 (FGIC Ins.) 500,000 358
240M Trinity River Auth. Ten Mile Creek System Rev. Bonds,
4%, 8/1/2005 (AMBAC Ins.) 243,447 174
- ----------------------------------------------------------------------------------------------------------------------
1,282,503 916
- ----------------------------------------------------------------------------------------------------------------------
Virginia--2.9%
400M Alexandria Industrial Dev. Auth. Rev. Bonds, VR, 2%
(LOC; Bank of America) 400,000 286
- ----------------------------------------------------------------------------------------------------------------------
Washington--3.2%
200M Lake Tapps Parkway Properties Special Rev. Bonds,
VR, 2.02% (LOC; U.S. Bank, NA) 200,000 143
250M Seattle Housing Auth. Rev. Bonds Pioneer Human Svcs.
Proj., VR, 2.05% (LOC; U.S. Bank, NA) 250,000 178
- ----------------------------------------------------------------------------------------------------------------------
450,000 321
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Wisconsin--4.3%
$600M Wisconsin State Health & Educ. Facs. Auth. Rev.
Bonds, VR, 1.99% (LOC; JPMorgan Chase & Co.) $600,000 $429
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $13,861,092)+ 99.0% 13,861,092 9,896
Other Assets, Less Liabilities 1.0 146,250 104
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $14,007,342 $10,000
======================================================================================================================
The interest rates shown for municipal notes and bonds are the effective
rates at the time of purchase by the Fund. Interest rates on variable
rate securities are adjusted periodically and the rates shown are the
rates that were in effect at December 31, 2004. The variable rate bonds
are subject to optional tenders (which are exercised through put options)
or mandatory redemptions. The put options are exercisable on a daily,
weekly, monthly or semi-annual basis at a price equal to the principal
amount plus accrued interest.
* Municipal Bonds which have been prerefunded are shown at the
prerefunded call date.
+ Aggregate cost for federal income tax purposes is the same.
Summary of Abbreviations:
AMBAC American Municipal Bond Assurance Corporation
CO Corporate Obligor
COP Certificates of Participation
FGIC Financial Guaranty Insurance Company
FSA Financial Security Assurance
GO General Obligation
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance Insurance Corporation
VR Variable Rate Securities
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
FIRST INVESTORS INSURED TAX EXEMPT FUND II
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
Arizona, California, Colorado, Connecticut, Florida, Georgia, Maryland,
Massachusetts, Michigan, Minnesota, Missouri, New Jersey, North Carolina,
Ohio, Oregon, Pennsylvania and Virginia Funds
Dear Investor:
This is the annual report for the First Investors Tax Exempt Municipal
Bond Funds for the year ended December 31, 2004. During the year, our
national insured tax exempt funds had the following returns on a net asset
value basis for Class A shares and Class B shares, respectively: Insured
Intermediate Tax Exempt Fund 1.3% and .5%, Insured Tax Exempt Fund 2.5%
and 1.8%, and Insured Tax Exempt Fund II 4.4% and 3.6%. Our single state
insured tax free funds had the following returns on a net asset value
basis for Class A shares and Class B shares, respectively: Arizona 3.5%
and 2.7%, California 4.0% and 3.2%, Colorado 3.5% and 2.8%, Connecticut
3.8% and 3.0%, Florida 3.4% and 2.6%, Georgia 3.2% and 2.5%, Maryland 2.5%
and 1.7%, Massachusetts 2.7% and 2.0%, Michigan 2.3% and 1.5%, Minnesota
3.4% and 2.7%, Missouri 3.7% and 3.0%, New Jersey 2.6% and 1.8%, New York
2.4% and 1.7%, North Carolina 3.2% and 2.5%, Ohio 2.6% and 1.8%, Oregon
2.8% and 2.0%, Pennsylvania 2.4% and 1.5%, and Virginia 2.8% and 2.0%.
The Funds' performance was largely driven by the flattening of the
municipal bond yield curve. Specifically, interest rates on tax-exempt
bonds with maturities of 10 years and less rose in response to the Federal
Reserve's tightening of monetary policy, while longer-term interest rates
fell as inflation expectations remained subdued and foreign buyers
continued to support the U.S. bond market.
The Funds' relative performance was hurt by the flattening of the yield
curve. The Funds were positioned for rising long-term interest rates and
generally held overweight positions in the 10-year sector of the yield
curve and underweight positions in bonds with maturities of 22 years and
greater. Conversely, the major municipal bond indexes had less exposure to
the 10-year sector and greater exposure to bonds with maturities of 22
years or more. The flatter yield curve, combined with falling long-term
rates, caused bonds with maturities of 22 years or more to outperform
those with 10-year maturities. The Insured Intermediate Tax Exempt Fund
was overweight in the five- and seven-year sectors of the yield curve and
underweight in the 10-year sector. The flattening of the yield curve
caused the Insured Intermediate Tax Exempt
Portfolio Manager's Letter (continued)
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
FIRST INVESTORS INSURED TAX EXEMPT FUND II
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
Arizona, California, Colorado, Connecticut, Florida, Georgia, Maryland,
Massachusetts, Michigan, Minnesota, Missouri, New Jersey, North Carolina,
Ohio, Oregon, Pennsylvania and Virginia Funds
Fund to underperform. Several Funds -- Insured Tax Exempt II, California,
Florida and Georgia -- outperformed their respective peer groups due to
relatively greater exposure to longer maturity bonds. In addition, the
Connecticut Fund outperformed its peer group because a large number of its
holdings were prerefunded.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ CLARK D. WAGNER
Clark D. Wagner
Director of Fixed Income
and Portfolio Manager
January 31, 2005
Fund Expenses
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ------------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ------------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,027.82 $4.84
Hypothetical (5% return before expenses) $1,000.00 $1,020.36 $4.82
- ------------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,023.96 $8.65
Hypothetical (5% return before expenses) $1,000.00 $1,016.59 $8.62
- ------------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .95% for Class A
shares and 1.70% for Class B shares, multiplied by the average account value
over the period, multiplied by 184/366 (to reflect the one-half year period).
Expenses paid during the period are net of expenses waived.
Portfolio Composition
TOP TEN STATES
(BAR CHART: Top Ten States)
New Jersey 20.7%
Arizona 8.5%
New York 8.2%
Oregon 7.8%
Michigan 7.5%
Pennsylvania 7.2%
Florida 6.2%
Alabama 3.4%
Connecticut 3.2%
Louisiana 2.3%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
Comparison of change in value of $10,000 investment in the First Investors
Insured Intermediate Tax Exempt Fund (Class A shares), the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master Index.+
First Investors Insured Intermediate Tax Exempt Fund
Graph Plot Points
As of December 31, 2004
Insured Lehman Merrill
Intermediate Brothers Lynch
Tax Exempt Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 10,700 11,759 11,768
Dec-96 11,136 12,259 12,302
Dec-97 11,990 13,385 13,645
Dec-98 12,766 14,253 14,613
Dec-99 12,831 13,959 13,686
Dec-00 14,129 15,590 16,033
Dec-01 14,810 16,389 16,750
Dec-02 16,686 17,963 18,547
Dec-03 17,318 18,916 19,692
Dec-04 17,540 19,764 20,766
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 1.28% (4.59%)
Five Years 6.45% 5.21%
Ten Years 6.41% 5.78%
S.E.C. 30-Day Yield 1.80%
Class B Shares
One Year 0.53% (3.47%)
Five Years 5.63% 5.31%
Since Inception
(1/12/95) 5.67% 5.67%
S.E.C. 30-Day Yield 1.17%
The graph compares a $10,000 investment in the First Investors Insured
Intermediate Tax Exempt Fund (Class A shares) beginning 12/31/94 with
theoretical investments in the Lehman Brothers Municipal Index and the
Merrill Lynch Municipal Securities Master Index (the "Indices"). The
Indices are total return performance benchmarks for the investment grade
tax exempt bond market. The Indices do not take into account fees and
expenses or cost of insurance of bonds held by an insured tax-exempt bond
fund. It is not possible to invest directly in these Indices. For
purposes of the graph and the accompanying table, unless otherwise
indicated, it has been assumed that the maximum sales charge was deducted
from the initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be greater
than or less than that shown in the line graph above for Class A shares
based on differences in sales loads and fees paid by shareholders
investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (4.69%), 4.94% and 5.22%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 1.70%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (3.57%), 4.99% and 5.11%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.06%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--97.8%
Alabama--3.4%
$1,000M Birmingham Series "A" 5 1/2% 4/1/2013 $1,140,000 $161
1,145M Jefferson County School Warrants GO 5% 4/1/2009 1,248,050 177
- ----------------------------------------------------------------------------------------------------------------------
2,388,050 338
- ----------------------------------------------------------------------------------------------------------------------
Arizona--8.4%
3,500M Arizona School Facs. Brd. Rev. Series "A" 5% 7/1/2008 3,797,500 538
University of Arizona COP Series "A":
1,000M 4 1/8% 6/1/2007 1,041,250 147
1,000M 5 1/4% 6/1/2009 1,106,250 157
- ----------------------------------------------------------------------------------------------------------------------
5,945,000 842
- ----------------------------------------------------------------------------------------------------------------------
Arkansas--1.5%
1,000M Beaver Water District Benton & Washington Counties
Water Rev. 4% 11/15/2009 1,053,750 149
- ----------------------------------------------------------------------------------------------------------------------
California--1.6%
1,000M California State Dept. Wtr. Pwr. Supply Rev.
5 1/4% 5/1/2010 1,118,750 158
- ----------------------------------------------------------------------------------------------------------------------
Colorado--1.6%
1,000M Pueblo County School Dist. #60 GO (Pueblo)
5% 12/15/2010 1,108,750 157
- ----------------------------------------------------------------------------------------------------------------------
Connecticut--3.1%
1,000M Connecticut State GO Series "F" 5% 10/15/2009 1,101,250 157
1,000M Hamden GO 5% 7/15/2011 1,106,250 157
- ----------------------------------------------------------------------------------------------------------------------
2,207,500 314
- ----------------------------------------------------------------------------------------------------------------------
District of Columbia--1.6%
1,000M District of Columbia COP 5 1/4% 1/1/2010 1,101,250 157
- ----------------------------------------------------------------------------------------------------------------------
Florida--6.2%
3,000M Florida State Dept. Env. Prot. Rev. (Florida Forever
Series "B") 5% 7/1/2008 3,255,000 461
1,000M Polk County Transportation Rev. 5% 12/1/2010** 1,096,250 155
- ----------------------------------------------------------------------------------------------------------------------
4,351,250 616
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Georgia--1.5%
$1,000M Athens Housing Auth. Lease Rev. (Univ. of
Georgia-East Campus) 4% 12/1/2009 $1,057,500 $150
- ----------------------------------------------------------------------------------------------------------------------
Illinois--1.6%
1,000M Chicago Transit Auth. Rev. 5 1/4% 6/1/2009 1,102,500 156
- ----------------------------------------------------------------------------------------------------------------------
Indiana--1.6%
1,000M New Albany Floyd County Sch. Bldg. Corp.
5 3/4% 7/15/2020 1,133,750 160
- ----------------------------------------------------------------------------------------------------------------------
Kentucky--1.5%
1,000M Kentucky Asset/Liability Community Gen. Fund
Rev. Series "A" 5% 7/15/2009 1,095,000 154
- ----------------------------------------------------------------------------------------------------------------------
Louisiana--2.3%
1,000M Louisiana Pub. Facs. Auth. Rev. 4 1/2% 10/15/2010 1,071,250 152
500M New Orleans GO 5 1/8% 12/1/2010 553,125 78
- ----------------------------------------------------------------------------------------------------------------------
1,624,375 230
- ----------------------------------------------------------------------------------------------------------------------
Maine--1.5%
1,000M Maine Municipal Bond Bank Series "A"
4 3/4% 11/1/2006 1,043,750 148
- ----------------------------------------------------------------------------------------------------------------------
Michigan--7.4%
1,000M Brighton Area School District GO Zero Coupon
5/1/2005 (prerefunded at $49.325)* 489,980 69
1,000M Michigan State Bldg. Auth. Rev. Series "I"
5% 10/15/2009 1,100,000 156
2,300M Rochester Cmnty. School District GO 5% 5/1/2013 2,553,000 362
1,000M South Central Power Supply Systems Rev.
5% 11/1/2010 1,103,750 156
- ----------------------------------------------------------------------------------------------------------------------
5,246,730 743
- ----------------------------------------------------------------------------------------------------------------------
Mississippi--1.5%
1,000M Gulfport GO 5% 3/1/2010 1,097,500 154
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
New Jersey--20.5%
Jersey City General Obligations:
General Improvement:
$1,000M Series "B" 4% 9/1/2006 $1,030,000 $146
1,700M Series "C" 5% 9/1/2009 1,861,500 263
1,000M School Improvement Series "B" 5% 3/1/2010 1,098,750 156
New Jersey Economic Dev. Auth. Revenue:
1,000M Cigarette Tax 5% 6/15/2009 1,087,500 154
1,000M School Facs. Series "C" 5% 6/15/2011 1,106,250 157
3,700M School Facs. Series "F" 5% 6/15/2011 4,093,125 579
2,000M New Jersey State Turnpike Auth. Rev. Series "A"
3.15% 1/1/2035 2,007,500 285
2,000M New Jersey Trans. Auth. Series "A" 5% 6/15/2009 2,190,000 310
- ----------------------------------------------------------------------------------------------------------------------
14,474,625 2,050
- ----------------------------------------------------------------------------------------------------------------------
New York--8.1%
150M New York City GO 5 1/2% 8/1/2012 169,688 25
New York State Dormitory Auth. Revenue:
1,000M School District Fing. Prog. Series "E" 5% 10/1/2010 1,103,750 156
1,000M Student Hsg. Corp. 5% 7/1/2010 1,102,500 156
3,000M New York State Thwy. Auth. Gen. Hwy. 5 1/4% 4/1/2011 3,356,250 475
- ----------------------------------------------------------------------------------------------------------------------
5,732,188 812
- ----------------------------------------------------------------------------------------------------------------------
Ohio--1.6%
1,000M Ohio State Bldg. Auth. Facs. Rev. 5 1/2% 10/1/2008 1,105,000 156
- ----------------------------------------------------------------------------------------------------------------------
Oklahoma--.4%
250M Grady County Indl. Dev. Auth. Rev. 5 3/8% 11/1/2009 276,875 39
- ----------------------------------------------------------------------------------------------------------------------
Oregon--7.7%
2,030M Umatilla County School District #008R (Hermiston)
GO 5% 6/15/2011 2,253,300 319
1,900M Washington County School District #048J (Beaverton)
GO Series "A" 5% 6/1/2009 2,082,875 295
1,000M Yamhill County School District #029J (Newburg)
GO 5% 6/15/2010 1,102,500 156
- ----------------------------------------------------------------------------------------------------------------------
5,438,675 770
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Pennsylvania--7.2%
$3,000M Pennsylvania State GO 5% 10/1/2007 $3,210,000 $454
Philadelphia Auth. Indl. Dev. Lease Revenue:
500M 5 1/4% 10/1/2009 555,000 79
150M 5 1/4% 10/1/2010 167,250 24
1,000M Philadelphia Muni. Auth. Rev. Series "B"
5 1/4% 11/15/2011 1,118,750 158
- ----------------------------------------------------------------------------------------------------------------------
5,051,000 715
- ----------------------------------------------------------------------------------------------------------------------
Puerto Rico--1.5%
1,000M Puerto Rico Pub. Bldg. Auth. Series "K"
4% 7/1/2007** 1,038,750 147
- ----------------------------------------------------------------------------------------------------------------------
Texas--1.5%
1,000M San Antonio Hotel Occupancy Rev. Series "B"
5% 8/15/2008** 1,075,000 152
- ----------------------------------------------------------------------------------------------------------------------
West Virginia--1.5%
1,000M West Virginia State Sch. Bldg. Auth. 5% 1/1/2010 1,095,000 154
- ----------------------------------------------------------------------------------------------------------------------
Wisconsin--1.5%
1,000M Wisconsin State Petroleum Ins. Fee Rev. Series "1"
5% 7/1/2011 1,098,750 155
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $67,879,239) 69,061,268 9,776
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--1.1%
$800M Valdez, AK Marine Terminal Exxon Pipeline Co.
Adjustable Rate Note 2.1%*** (cost $800,000) $800,000 $113
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $68,679,239) 98.9% 69,861,268 9,889
Other Assets, Less Liabilities 1.1 783,153 111
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $70,644,421 $10,000
======================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Municipal Bonds which have an irrevocable mandatory put by the issuer are shown maturing at
the put date.
*** Interest rates on Adjustable Rate Notes are determined and reset periodically by the issuer. The
interest rate shown is reset daily and is the rate in effect at December 31, 2004.
Summary of Abbreviations:
COP Certificate of Participation
GO General Obligation
See notes to financial statements
Fund Expenses
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- -----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- -----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,042.99 $5.14
Hypothetical (5% return before expenses) $1,000.00 $1,020.11 $5.08
- -----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,039.42 $8.87
Hypothetical (5% return before expenses) $1,000.00 $1,016.44 $8.77
- -----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.00% for Class A
shares and 1.73% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half year
period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
TOP TEN STATES
(BAR CHART: Top Ten States)
Illinois 17.4%
Georgia 11.1%
New York 8.1%
Texas 7.6%
Massachusetts 5.6%
Nevada 4.6%
Missouri 3.9%
New Jersey 3.7%
California 3.6%
Pennsylvania 3.5%
Portfolio holdings and allocations are subject to change.
Percentages are as of December 31, 2004, and are based on
the total market value of investments.
Cumulative Performance Information
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
Comparison of change in value of $10,000 investment in the First Investors
Insured Tax Exempt Fund, Inc. (Class A shares), the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master Index.+
First Investors Insured Tax Exempt Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Insured Brothers Lynch
Tax Exempt Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 10,939 11,759 11,768
Dec-96 11,247 12,259 12,302
Dec-97 12,177 13,385 13,645
Dec-98 12,861 14,253 14,613
Dec-99 12,395 13,959 13,686
Dec-00 13,873 15,590 16,033
Dec-01 14,360 16,389 16,750
Dec-02 15,810 17,963 18,547
Dec-03 16,522 18,916 19,692
Dec-04 16,929 19,764 20,766
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 2.47% (3.46%)
Five Years 6.43% 5.19%
Ten Years 6.03% 5.41%
S.E.C. 30-Day Yield 2.45%
Class B Shares
One Year 1.76% (2.24%)
Five Years 5.66% 5.34%
Since Inception
(1/12/95) 5.38% 5.38%
S.E.C. 30-Day Yield 1.88%
The graph compares a $10,000 investment in the First Investors Insured Tax
Exempt Fund, Inc. (Class A shares) beginning 12/31/94 with theoretical
investments in the Lehman Brothers Municipal Index and the Merrill Lynch
Municipal Securities Master Index (the "Indices"). The Indices are total
return performance benchmarks for the investment grade tax exempt bond
market. The Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the graph and
the accompanying table, unless otherwise indicated, it has been assumed
that the maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were reinvested.
Class B shares performance may be greater than or less than that shown in
the line graph above for Class A shares based on differences in sales loads
and fees paid by shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (3.56%), 5.12% and 5.37% respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.31%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (2.34%), 5.26% and 5.35%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.72%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--99.1%
Alabama--.8%
$5,835M Alabama Water Pollution Control Auth. 6% 8/15/2014 $6,630,019 $80
- ----------------------------------------------------------------------------------------------------------------------
Alaska--.8%
1,500M Alaska Intl. Airport Rev. Series "B" 5 3/4% 10/1/2015 1,715,625 21
5,000M North Slope Boro GO Zero Coupon 6/30/2005 4,950,650 60
- ----------------------------------------------------------------------------------------------------------------------
6,666,275 81
- ----------------------------------------------------------------------------------------------------------------------
Arizona--1.5%
8,550M Arizona State Municipal Fing. Prog. COP
7.7% 8/1/2010 10,195,875 123
Phoenix Civic Improvement Corp.
Water Sys. Revenue:
1,000M 5 1/2% 7/1/2019 1,115,000 14
1,000M 5 1/2% 7/1/2020 1,110,000 13
- ----------------------------------------------------------------------------------------------------------------------
12,420,875 150
- ----------------------------------------------------------------------------------------------------------------------
California--3.6%
5,500M California State Dept. Water Resource Pwr. Supply
Rev. Series "A" 5 3/8% 5/1/2018 6,105,000 74
10,000M California State GO 5% 6/1/2027 10,412,500 126
2,000M Colton Joint Unified School Dist. GO Series "A"
5 3/8% 8/1/2026 2,185,000 26
10,000M Los Angeles Community College Dist. GO Series "A"
5 1/2% 8/1/2021 11,175,000 135
- ----------------------------------------------------------------------------------------------------------------------
29,877,500 361
- ----------------------------------------------------------------------------------------------------------------------
Connecticut--3.0%
Connecticut State General Obligations:
9,890M Series "C" 5% 4/1/2023 10,495,762 127
3,750M Series "D" 5% 12/1/2023 3,989,062 48
9,000M Connecticut State Spl. Tax Oblig. Rev. Trans.
Infrastructure 6 1/8% 9/1/2012 10,563,750 127
- ----------------------------------------------------------------------------------------------------------------------
25,048,574 302
- ----------------------------------------------------------------------------------------------------------------------
District of Columbia--.7%
5,000M Washington DC GO Series "B" 6% 6/1/2021 6,100,000 74
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Florida--1.5%
Miami-Dade County Expwy. Auth. Toll Sys. Revenue:
$6,550M Series "B" 5% 7/1/2022 $6,951,187 $84
3,165M Series "B" 5% 7/1/2023 3,358,856 40
1,395M West Coast Regl. Wtr. Supply Rev. 10.4% 10/1/2010* 1,799,550 22
- ----------------------------------------------------------------------------------------------------------------------
12,109,593 146
- ----------------------------------------------------------------------------------------------------------------------
Georgia--11.0%
15,000M Atlanta Airport Rev. Series "A" 5 1/2% 1/1/2010* 17,025,000 206
Atlanta Water & Wastewater Revenue:
3,000M 5% 11/1/2023 3,176,250 38
9,040M Series "A" 5 1/2% 11/1/2019 10,599,400 128
2,540M Fulton County Dev. Auth. Rev. Klaus Parking & Family
Hsg. Projs. (Georgia Tech. Facs.) 5 1/4% 11/1/2021 2,784,475 34
Metropolitan Atlanta Rapid Transit Authority
Sales Tax Rev.:
20,450M 6 1/4% 7/1/2011 24,182,125 292
28,305M 6% 7/1/2013 33,399,900 403
- ----------------------------------------------------------------------------------------------------------------------
91,167,150 1,101
- ----------------------------------------------------------------------------------------------------------------------
Hawaii--1.6%
Hawaii State General Obligations:
5,500M 6% 10/1/2009 6,283,750 76
6,000M 6% 10/1/2010 6,952,500 84
- ----------------------------------------------------------------------------------------------------------------------
13,236,250 160
- ----------------------------------------------------------------------------------------------------------------------
Illinois--17.2%
Chicago Board of Education Lease Certificates of
Participation Series "A":
5,000M 6% 1/1/2016 5,962,500 72
36,200M 6% 1/1/2020 43,213,750 522
Chicago General Obligations:
7,000M 6% 7/1/2005* 7,276,640 88
16,660M 6 1/8% 7/1/2005* 17,328,399 209
16,750M Illinois Development Fin. Auth. Poll. Cntl. Rev.
6 3/4% 3/1/2015 17,202,083 208
Illinois Development Fin. Auth. Revenue
(Rockford School #205):
5,000M 6.6% 2/1/2010 5,850,000 71
3,000M 6.65% 2/1/2011 3,577,500 43
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Illinois (continued)
Illinois State First Series General Obligations:
$5,250M 6 1/8% 1/1/2010* $6,063,750 $73
4,500M 5 1/2% 2/1/2016 5,006,250 60
8,000M 5 1/2% 5/1/2017 8,890,000 107
12,000M 5 1/2% 5/1/2018 13,305,000 161
3,000M Metro Pier & Exposition Auth. (McCormick Place
Expansion) Series "B" 5 1/2% 6/15/2016 3,390,000 41
4,000M Regional Transportation Auth. 7 3/4% 6/1/2019 5,405,000 65
- ----------------------------------------------------------------------------------------------------------------------
142,470,872 1,720
- ----------------------------------------------------------------------------------------------------------------------
Kansas--.3%
2,475M Wyandotte County Unified Sch. Dist. #500 GO
5% 9/1/2020 2,620,406 32
- ----------------------------------------------------------------------------------------------------------------------
Louisiana--.7%
12,350M Regional Trans. Auth. Zero Coupon 12/1/2021 5,542,063 67
- ----------------------------------------------------------------------------------------------------------------------
Massachusetts--5.6%
10,025M Boston Water & Sewer Rev. 5 3/4% 11/1/2013 11,691,656 141
1,490M Massachusetts Housing Finance Agy. 6% 12/1/2012 1,547,737 19
9,000M Massachusetts State Construction Loan GO
Series "D" 5% 11/1/2024 9,495,000 115
20,550M Massachusetts State GO 6% 8/1/2009 23,478,375 283
- ----------------------------------------------------------------------------------------------------------------------
46,212,768 558
- ----------------------------------------------------------------------------------------------------------------------
Michigan--2.1%
10,000M Michigan State Environmental Protection Prog.
GO 6 1/4% 11/1/2012 11,662,500 141
4,500M Monroe County Economic Dev. Corp.
(Detroit Edison Co.) 6.95% 9/1/2022 6,001,875 72
- ----------------------------------------------------------------------------------------------------------------------
17,664,375 213
- ----------------------------------------------------------------------------------------------------------------------
Minnesota--1.7%
Minneapolis & St. Paul Metro Airports Comm. Airport
Rev. Series "C":
3,380M 5 1/2% 1/1/2017 3,747,575 45
3,315M 5 1/2% 1/1/2018 3,667,219 44
5,770M 5 1/2% 1/1/2019 6,354,213 77
- ----------------------------------------------------------------------------------------------------------------------
13,769,007 166
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Missouri--3.9%
Missouri State Health & Educ. Facs. Auth. Series "A"
(BJC Hlth. Sys.):
$6,840M 6 3/4% 5/15/2010 $8,113,950 $98
10,175M 6 3/4% 5/15/2011 12,260,875 148
St. Louis Airport Revenue Series "A":
4,135M 5 5/8% 7/1/2017 4,620,863 56
3,620M 5 5/8% 7/1/2018 4,031,775 49
3,030M 5 5/8% 7/1/2019 3,363,300 40
- ----------------------------------------------------------------------------------------------------------------------
32,390,763 391
- ----------------------------------------------------------------------------------------------------------------------
Nevada--4.6%
Clark County Nevada Bond Bank General Obligations:
8,195M 5 1/2% 6/1/2017 9,116,938 110
8,645M 5 1/2% 6/1/2018 9,595,950 116
Las Vegas New Convention & Visitors Auth. Revenue:
3,500M 5 3/4% 7/1/2015 3,946,250 48
2,500M 5 3/4% 7/1/2017 2,812,500 34
Truckee Meadows Nevada Water Authority Revenue:
6,115M 5 1/2% 7/1/2017 6,787,650 82
2,605M 5 1/2% 7/1/2018 2,888,294 35
2,500M 5 1/2% 7/1/2019 2,759,375 33
- ----------------------------------------------------------------------------------------------------------------------
37,906,957 458
- ----------------------------------------------------------------------------------------------------------------------
New Jersey--3.7%
2,200M New Jersey State Educ. Facs. Auth. Rev. Public
Library PJ Grant 5 1/2% 9/1/2018 2,466,750 30
10,000M New Jersey State Trans. Corp. COP Fed. Trans.
Admin. Grants Series "A" 5 3/4% 9/15/2009* 11,325,000 137
16,300M New Jersey State Turnpike Auth. Rev. Series "A"
5% 1/1/2035 16,564,875 200
- ----------------------------------------------------------------------------------------------------------------------
30,356,625 367
- ----------------------------------------------------------------------------------------------------------------------
New Mexico--1.3%
10,000M New Mexico Fin. Auth. State Trans. Rev. Series "A"
5 1/4% 6/15/2021 11,062,500 134
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
New York--8.0%
New York City General Obligations:
$5,000M Series "C" 5 1/2% 3/15/2015 $5,550,000 $67
3,275M Series "G" 5 5/8% 8/1/2020 3,668,000 44
22,250M New York City Municipal Water Fin. Auth. Rev.
6% 6/15/2021 27,311,875 330
New York State Dorm. Auth. Rev. New York University:
5,000M 5 7/8% 5/15/2017 6,000,000 72
10,000M Series "A" 5 3/4% 7/1/2027 12,000,000 145
5,950M New York State Housing Fin. Agy. Rev.
5 7/8% 11/1/2010 6,299,562 76
5,000M Suffolk County Judicial Facs. Agy. (John P. Cohalan
Complex) 5 3/4% 10/15/2013 5,706,250 69
- ----------------------------------------------------------------------------------------------------------------------
66,535,687 803
- ----------------------------------------------------------------------------------------------------------------------
North Carolina--2.9%
3,030M Charlotte Airport Rev. Series "A" 5 1/4% 7/1/2023 3,261,038 39
North Carolina Municipal Pwr. Agy. (Catawba Elec.):
8,950M 6% 1/1/2010 10,214,187 123
8,945M 6% 1/1/2011 10,320,294 125
- ----------------------------------------------------------------------------------------------------------------------
23,795,519 287
- ----------------------------------------------------------------------------------------------------------------------
North Dakota--1.5%
10,500M Mercer County Pollution Control Rev. (Basin Elec.
Pwr. Coop.) 7.2% 6/30/2013 12,849,375 154
- ----------------------------------------------------------------------------------------------------------------------
Ohio--.9%
6,000M Jefferson County Jail Construction GO 5 3/4% 12/1/2019 7,177,500 87
- ----------------------------------------------------------------------------------------------------------------------
Oklahoma--.8%
5,540M Oklahoma State Ind. Dev. Auth. (Intregris Hlth. Sys.)
6% 8/15/2017 6,239,425 75
- ----------------------------------------------------------------------------------------------------------------------
Oregon--.7%
Portland Urban Renewal & Redev. South Park Blocks
Series "A":
2,695M 5 3/4% 6/15/2015 3,058,825 37
2,630M 5 3/4% 6/15/2016 2,981,762 36
- ----------------------------------------------------------------------------------------------------------------------
6,040,587 73
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Pennsylvania--3.4%
$3,000M Allegheny County Sanitation Auth. Sewer Rev.
5 1/2% 12/1/2030 $3,255,000 $39
5,000M Moon Area School District 5% 11/15/2024 5,281,250 64
4,925M Philadelphia Housing Auth. Capital Fund Prog. Rev.
Series "A" 5 1/2% 12/1/2019 5,565,250 67
12,050M Pittsburgh Water & Sewer Auth. Rev. 6 1/2% 9/1/2013 14,460,000 174
- ----------------------------------------------------------------------------------------------------------------------
28,561,500 344
- ----------------------------------------------------------------------------------------------------------------------
Rhode Island--.5%
4,000M Rhode Island State Construction Capital Dev. GO
Series "A" 5 1/2% 7/15/2018 4,450,000 54
- ----------------------------------------------------------------------------------------------------------------------
South Dakota--.5%
3,855M South Dakota Hlth. & Educ. Facs. Auth.
(McKennan Hosp.) 7 5/8% 1/1/2008* 4,442,888 54
- ----------------------------------------------------------------------------------------------------------------------
Tennessee--.5%
3,500M Memphis-Shelby County Sports Auth. Rev.
(Memphis Arena Proj.) Series "A" 5 1/2% 11/1/2016 3,976,875 48
- ----------------------------------------------------------------------------------------------------------------------
Texas--7.6%
16,000M Austin Texas Utilities Systems Rev. 6% 11/15/2013 18,680,000 226
Harris County Toll Road Sub. Liens
General Obligations Series "A":
11,065M 6 1/2% 8/15/2012 13,305,663 161
7,305M 6 1/2% 8/15/2013 8,866,444 107
Houston Water Conveyance System
Certificates of Participation:
2,250M 6 1/4% 12/15/2012 2,688,750 32
4,705M 6 1/4% 12/15/2013 5,663,644 68
4,950M 6 1/4% 12/15/2014 6,008,062 73
6,035M 6 1/4% 12/15/2015 7,355,156 89
- ----------------------------------------------------------------------------------------------------------------------
62,567,719 756
- ----------------------------------------------------------------------------------------------------------------------
Utah--.3%
1,680M Provo Utah Electric System Rev. 10 3/8% 9/15/2015 2,358,300 29
- ----------------------------------------------------------------------------------------------------------------------
Virginia--.4%
3,310M Norfolk Airport Auth. Rev. Series "A" 5% 7/1/2022 3,434,125 42
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Washington--2.2%
Snohomish County Washington Ltd.
Tax General Obligations:
$7,975M 5 1/2% 12/1/2017 $8,882,156 $107
8,410M 5 1/2% 12/1/2018 9,345,613 113
- ----------------------------------------------------------------------------------------------------------------------
18,227,769 220
- ----------------------------------------------------------------------------------------------------------------------
Wisconsin--3.3%
12,000M Superior Wisconsin Ltd. Oblig. Rev. (Midwest Energy)
6.9% 8/1/2021 15,795,000 191
10,745M Wisconsin State Series "E" 5% 5/1/2025 11,295,681 136
- ----------------------------------------------------------------------------------------------------------------------
27,090,681 327
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $728,866,565) 99.1% 821,000,522 9,914
Other Assets, Less Liabilities .9 7,094,149 86
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $828,094,671 $10,000
======================================================================================================================
Expiration Notional Unrealized
Interest Rate Swap Date Amount Depreciation
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on
the BMA Index and pay quarterly a fixed
rate equal to 3.765% with Citibank, N.A. 8/18/2014 $40,000M $(620,339)
======================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
Summary of Abbreviations:
COP Certificate of Participation
GO General Obligation
See notes to financial statements
Fund Expenses
FIRST INVESTORS INSURED TAX EXEMPT FUND II
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,053.23 $5.16
Hypothetical (5% return before expenses) $1,000.00 $1,020.11 $5.08
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,049.89 $9.02
Hypothetical (5% return before expenses) $1,000.00 $1,016.34 $8.87
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.00% for Class A
shares and 1.75% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half
year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
TOP TEN STATES
(BAR CHART: Top Ten States)
Florida 12.0%
Michigan 11.7%
California 10.5%
Texas 8.0%
Colorado 8.0%
Ohio 7.4%
Massachusetts 5.1%
Indiana 3.6%
New Jersey 3.4%
Virginia 3.1%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
FIRST INVESTORS INSURED TAX EXEMPT FUND II
Comparison of change in value of $10,000 investment in the First Investors
Insured Tax Exempt Fund II (Class A shares), the Lehman Brothers Municipal
Index and the Merrill Lynch Municipal Securities Master Index.+
First Investors Insured Tax Exempt Fund II
Graph Plot Points
As of December 31, 2004
Insured Lehman Merrill
Tax Brothers Lynch
Exempt Municipal Municipal
Fund II Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 11,364 11,759 11,768
Dec-96 11,831 12,259 12,302
Dec-97 13,049 13,385 13,645
Dec-98 14,014 14,253 14,613
Dec-99 13,745 13,959 13,686
Dec-00 15,601 15,590 16,033
Dec-01 16,447 16,389 16,750
Dec-02 18,476 17,963 18,547
Dec-03 19,408 18,916 19,692
Dec-04 20,255 19,764 20,766
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.36% (1.64%)
Five Years 8.06% 6.79%
Ten Years 7.95% 7.31%
S.E.C. 30-Day Yield 2.69%
Class B Shares
One Year 3.62% (0.38%)
Since Inception
(12/18/00) 6.13% 5.71%
S.E.C. 30-Day Yield 2.11%
The graph compares a $10,000 investment in the First Investors Insured Tax
Exempt Fund II (Class A shares) beginning 12/31/94 with theoretical
investments in the Lehman Brothers Municipal Index and the Merrill Lynch
Municipal Securities Master Index (the "Indices"). The Indices are total
return performance benchmarks for the investment grade tax exempt bond
market. The Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the graph
and the accompanying table, unless otherwise indicated, it has been assumed
that the maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were reinvested.
Class B shares performance may be greater than or less than that shown in
the line graph above for Class A shares based on differences in sales loads
and fees paid by shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (2.10%), 6.25% and 6.43%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.27%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year and
Since Inception would have been (.85%) and 5.18%, respectively, and the
S.E.C. 30-Day Yield for December 2004 would have been 1.63%. Results
represent past performance and do not indicate future results. The graph
and the returns shown do not reflect the deduction of taxes that a
shareholder would pay on distributions or the redemption of fund shares.
Investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
the original cost. Lehman Brothers Municipal Index figures are from
Lehman Brothers, Inc., Merrill Lynch Municipal Securities Master Index
figures are from Merrill Lynch & Co. and all other figures are from
First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities Master
Index this year because it is more readily available to the Fund. After
this year, we will not show a comparison to the Lehman Brothers Municipal
Index.
Portfolio of Investments
FIRST INVESTORS INSURED TAX EXEMPT FUND II
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--100.9%
Alabama--.3%
$250M Coffee County Public Bldg. Auth. 6.1% 9/1/2006* $270,625 $27
- ----------------------------------------------------------------------------------------------------------------------
Alaska--1.1%
1,000M Alaska Intl. Airport Rev. Series "B" 5 3/4% 10/1/2015 1,143,750 114
- ----------------------------------------------------------------------------------------------------------------------
Arizona--1.4%
1,000M Arizona State Trans. Bd. Hwy. Rev. 5 1/4% 7/1/2020 1,091,250 109
250M Maricopa County Ind. Dev. Hosp. Facs. Rev.
(Samaritan Hlth. Svcs.) 7% 12/1/2016 313,750 32
- ----------------------------------------------------------------------------------------------------------------------
1,405,000 141
- ----------------------------------------------------------------------------------------------------------------------
California--11.0%
3,000M California State Dept. Water Res. Pwr. Supply Rev.
Series "A" 5 3/8% 5/1/2018 3,330,000 333
5,000M California State GO 5% 6/1/2027 5,206,250 521
690M Jefferson Unified High Sch. Dist. GO (San Mateo Cnty.)
6 1/4% 2/1/2017 846,975 85
1,500M San Mateo Unified High Sch. Dist. GO 5% 9/1/2024 1,586,250 158
- ----------------------------------------------------------------------------------------------------------------------
10,969,475 1,097
- ----------------------------------------------------------------------------------------------------------------------
Colorado--8.4%
1,500M Adams & Arapahoe Cntys. Jnt. Sch. Dist. #28J Aurora
GO Series "A" 5 1/8% 12/1/2021 1,629,375 163
1,590M Adams & Weld Cntys. Sch. Dist. #27J Brighton GO
5% 12/1/2015 1,760,925 176
1,535M Grand Cnty. Sch. Dist. #002 East Grand GO Series "B"
5% 12/1/2023 1,625,181 162
1,000M Lafayette Water Rev. 5 1/4% 12/1/2023 1,087,500 109
2,180M Widefield Water & San. Dist. Wtr. & Swr. Rev.
5% 12/1/2022 2,329,875 233
- ----------------------------------------------------------------------------------------------------------------------
8,432,856 843
- ----------------------------------------------------------------------------------------------------------------------
Connecticut--2.8%
1,250M Connecticut State GO Series "D" 5% 12/1/2023 1,329,688 133
1,425M West Haven GO 5% 7/1/2023 1,476,656 148
- ----------------------------------------------------------------------------------------------------------------------
2,806,344 281
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INSURED TAX EXEMPT FUND II
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Florida--12.6%
$335M Cocoa Water & Sewer Rev. 5 3/4% 10/1/2007* $368,919 $37
3,850M Duval Cnty. School Board 5% 7/1/2020 (when-issued) 4,143,562 414
3,000M Miami-Dade County Expwy. Auth. Toll Sys. Rev.
Series "B" 5% 7/1/2023 3,183,750 318
1,045M Port St. Lucie Util. Sys. Rev. 5% 9/1/2022 1,110,313 111
1,965M St. Lucie School Bd. Master Lease Prog. Series "A"
5% 7/1/2026 2,048,513 205
1,580M Tampa Util. Tax & Spl. Rev. 5 1/4% 10/1/2021 1,716,275 172
- ----------------------------------------------------------------------------------------------------------------------
12,571,332 1,257
- ----------------------------------------------------------------------------------------------------------------------
Georgia--3.2%
1,000M Atlanta Airport Revenue Series "G" 5% 1/1/2026 1,033,750 103
1,000M Fulton Cnty. Dev. Auth. Rev. Klaus Parking &
Family Hsg. Projs. (Georgia Tech. Facs.)
5 1/4% 11/1/2021 1,096,250 110
1,000M Georgia Municipal Association, Inc. COP
(City Court Atlanta Proj.) 5 1/8% 12/1/2021 1,076,250 108
- ----------------------------------------------------------------------------------------------------------------------
3,206,250 321
- ----------------------------------------------------------------------------------------------------------------------
Illinois--.5%
500M Chicago GO 6% 7/1/2005* 519,760 52
- ----------------------------------------------------------------------------------------------------------------------
Indiana--3.8%
1,030M Baugo School Bldg. Corp. 5 1/2% 1/15/2019 1,140,725 114
1,105M Merrillville Multi-School Building Corp. GO
5 1/2% 7/15/2017 1,229,312 123
1,250M Zionsville Community Schools Bldg. Corp. GO
5 3/4% 7/15/2017 1,420,313 142
- ----------------------------------------------------------------------------------------------------------------------
3,790,350 379
- ----------------------------------------------------------------------------------------------------------------------
Kentucky--1.1%
1,000M Kentucky State Ppty. & Buildings Comm. Rev.
5 1/4% 8/1/2013* 1,136,250 114
- ----------------------------------------------------------------------------------------------------------------------
Louisiana--2.0%
1,845M Louisiana Local Govt. Env. Facs. & Comm.
5 1/4% 10/1/2021 1,990,294 199
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Massachusetts--5.3%
$1,305M Ashland GO 5 1/4% 5/15/2021 $1,428,975 $143
1,625M Massachusetts State Construction Loan GO
Series "D" 5% 11/1/2024 1,714,375 171
1,000M Springfield GO 5 1/4% 1/15/2022 1,090,000 109
1,000M University Bldg. Auth. Proj. Rev. 5 1/4% 11/1/2023 1,080,000 108
- ----------------------------------------------------------------------------------------------------------------------
5,313,350 531
- ----------------------------------------------------------------------------------------------------------------------
Michigan--12.3%
1,000M Detroit City School Dist. GO (Sch. Bldg. & Site Impt.)
5 1/2% 5/1/2018 1,111,250 111
1,105M Grand Rapids Cmnty. College GO 5 1/4% 5/1/2021 1,203,069 120
1,825M Gull Lake Cmnty. School Dist. Sch. Bldg. & Site GO
5% 5/1/2022 1,939,063 194
1,000M Howell Public Schools GO Zero Coupon 5/1/2006* 445,000 45
1,700M Jackson Public Schools Bldg. & Site GO 5% 5/1/2026 1,768,000 177
1,000M Michigan Public Pwr. Agy. Rev. (Combustion
Turbine #1 Proj.) 5 1/4% 1/1/2018 1,088,750 109
750M Milan Area School Dist. GO 5 5/8% 5/1/2010* 851,250 85
3,600M Southfield Public School Bldg. & Site Series "B"
GO 5 1/8% 5/1/2021 3,901,500 390
- ----------------------------------------------------------------------------------------------------------------------
12,307,882 1,231
- ----------------------------------------------------------------------------------------------------------------------
Mississippi--1.1%
1,000M Mississippi Dev. Bank Spl. Oblig. (Jackson Wtr. &
Swr. Sys.) 5% 9/1/2021 1,065,000 106
- ----------------------------------------------------------------------------------------------------------------------
Missouri--1.3%
200M Liberty Sewer System Rev. 6.15% 2/1/2015 226,000 23
310M Springfield Pub. Bldg. Corp. Leasehold Rev.
(Springfield Rec. Proj.) Series "B" 5.85% 6/1/2014 351,850 35
250M St. Joseph School Dist. GO (Direct Dep. Prog.)
5 3/4% 3/1/2019 282,187 28
375M St. Louis County Pattonville R-3 School Dist. GO
(Direct Dep. Prog.) 5 3/4% 3/1/2010* 430,312 43
- ----------------------------------------------------------------------------------------------------------------------
1,290,349 129
- ----------------------------------------------------------------------------------------------------------------------
Nebraska--1.1%
1,000M Municipal Energy Agency 5 1/4% 4/1/2021 1,087,500 109
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INSURED TAX EXEMPT FUND II
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
New Jersey--3.6%
$1,000M Hudson County COP 5% 12/1/2021 $1,071,250 $107
2,350M New Jersey State Educ. Facs. Auth. Rowan Univ.
5 1/8% 7/1/2021 2,532,125 253
- ----------------------------------------------------------------------------------------------------------------------
3,603,375 360
- ----------------------------------------------------------------------------------------------------------------------
New York--2.5%
Camden Central School District General Obligations:
725M 5 1/2% 3/15/2016 814,719 82
250M 5 1/2% 3/15/2017 281,250 28
1,255M New York State Dorm Auth. Lease Rev. Univ. Dorm
Facs. Series "A" 5% 7/1/2021 1,352,263 135
- ----------------------------------------------------------------------------------------------------------------------
2,448,232 245
- ----------------------------------------------------------------------------------------------------------------------
Ohio--7.7%
1,255M Akron Sewer System Rev. 5 1/4% 12/1/2020 1,377,362 138
2,500M Akron-Summit Cnty. Pub. Library GO 5% 12/1/2020 2,662,500 266
1,380M Cincinnati State Tech. & Cmnty. College Gen. Receipts
5 1/4% 10/1/2020 1,521,450 152
1,500M Ohio State Bldg. Auth. State Facs. 5 1/2% 4/1/2018 1,663,125 167
450M Youngstown GO 6% 12/1/2031 513,000 51
- ----------------------------------------------------------------------------------------------------------------------
7,737,437 774
- ----------------------------------------------------------------------------------------------------------------------
Oregon--.5%
500M Oregon State Dept. of Administrative Services COP
5.65% 5/1/2007* 543,125 54
- ----------------------------------------------------------------------------------------------------------------------
Pennsylvania--2.7%
525M Erie GO 5 3/4% 5/15/2007* 567,000 57
State Public School Bldg. Authority:
1,000M Philadelphia 5 1/4% 6/1/2024 1,081,250 108
1,000M Richland 5% 11/15/2023 1,058,750 106
- ----------------------------------------------------------------------------------------------------------------------
2,707,000 271
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Puerto Rico--.6%
$545M Puerto Rico Indl. Tourist Educ. Med. & Env. Cntl.
Facs. 6 1/4% 7/1/2016 $558,625 $56
- ----------------------------------------------------------------------------------------------------------------------
South Carolina--1.1%
1,000M Hilton Head Island Rev. 5 1/8% 12/1/2022 1,076,250 108
- ----------------------------------------------------------------------------------------------------------------------
Texas--8.4%
505M Austin Texas Utility Systems Rev. 6% 11/15/2013 589,587 59
400M Harris County Toll Road GO Sub. Liens Series "A"
6 1/2% 8/15/2013 485,500 48
5,000M Houston Utility Systems Rev. 5 1/4% 5/15/2020 5,518,750 552
1,800M Tyler Ind. School District GO 5% 2/15/2028 1,849,500 185
- ----------------------------------------------------------------------------------------------------------------------
8,443,337 844
- ----------------------------------------------------------------------------------------------------------------------
Virginia--3.3%
1,100M Dinwiddie Cnty. Indl. Dev. Auth. Lease Rev. Series "B"
5% 2/15/2024 1,153,625 115
1,000M Front Royal & Warren Cntys. Indl. Dev. Auth.
Lease Rev. Series "B" 5% 4/1/2022 1,062,500 106
1,000M Richmond Public Utility Rev. 5% 1/15/2022 1,066,250 107
- ----------------------------------------------------------------------------------------------------------------------
3,282,375 328
- ----------------------------------------------------------------------------------------------------------------------
Washington--1.2%
1,090M King County Sewer Rev. 5 1/2% 1/1/2021 1,196,275 120
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $96,430,591) 100,902,398 10,091
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INSURED TAX EXEMPT FUND II
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--4.0%
Adjustable Rate Notes**
$2,500M Missouri St. Hlth. & Educ. Facs. Rev. 2.13% $2,500,000 $250
1,500M University of Michigan Regent Hosp. Rev. 2.15% 1,500,000 150
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Tax Exempt Investments
(cost $4,000,000) 4,000,000 400
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $100,430,591) 104.9% 104,902,398 10,491
Excess of Liabilities Over Other Assets (4.9) (4,909,105) (491)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $99,993,293 $10,000
======================================================================================================================
Unrealized
Expiration Notional Appreciation
Interest Rate Swaps Date Amount (Depreciation)
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 4.037% with Citibank, N.A. 7/30/2014 $2,600M $(98,361)
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 4,800M 32,416
- ----------------------------------------------------------------------------------------------------------------------
$7,400M $(65,945)
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset periodically by the issuer. The
interest rates shown are reset daily and are the rates in effect at December 31, 2004.
Summary of Abbreviations:
COP Certificate of Participation
GO General Obligation
See notes to financial statements
Fund Expenses
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,042.31 $5.03
Hypothetical (5% return before expenses) $1,000.00 $1,020.21 $4.98
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,038.50 $8.86
Hypothetical (5% return before expenses) $1,000.00 $1,016.44 $8.77
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .98% for Class A
shares and 1.73% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half
year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
General Obligations 31.0%
Education 24.4%
Transportation 18.8%
Utilities 15.4%
Other Revenue 4.7%
Healthcare 3.0%
Short-Term Tax-Exempt Investments 1.4%
Housing 1.3%
Portfolio holdings and allocations are subject to change.
Percentages are as of December 31, 2004, and are based on
the total market value of investments.
Cumulative Performance Information
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
Comparison of change in value of $10,000 investment in the First Investors
New York Insured Tax Free Fund, Inc. (Class A shares), the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master Index.+
First Investors New York Insured Tax Free Fund
Graph Plot Points
As of December 31, 2004
New York Lehman Merrill
Insured Brothers Lynch
Tax Free Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 10,884 11,759 11,768
Dec-96 11,205 12,259 12,302
Dec-97 12,081 13,385 13,645
Dec-98 12,757 14,253 14,613
Dec-99 12,289 13,959 13,686
Dec-00 13,814 15,590 16,033
Dec-01 14,248 16,389 16,750
Dec-02 15,737 17,963 18,547
Dec-03 16,425 18,916 19,692
Dec-04 16,825 19,764 20,766
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 2.44% (3.42%)
Five Years 6.48% 5.24%
Ten Years 5.96% 5.34%
S.E.C. 30-Day Yield 2.66%
Class B Shares
One Year 1.69% (2.31%)
Five Years 5.70% 5.38%
Since Inception
(1/12/95) 5.31% 5.31%
S.E.C. 30-Day Yield 2.08%
The graph compares a $10,000 investment in the First Investors New
York Insured Tax Free Fund, Inc. (Class A shares) beginning 12/31/94
with theoretical investments in the Lehman Brothers Municipal Index
and the Merrill Lynch Municipal Securities Master Index (the
"Indices"). The Indices are total return performance benchmarks for
the investment grade tax exempt bond market. The Indices do not take
into account fees and expenses or cost of insurance of bonds held by
an insured tax-exempt bond fund. It is not possible to invest directly
in these Indices. For purposes of the graph and the accompanying
table, unless otherwise indicated, it has been assumed that the
maximum sales charge was deducted from the initial $10,000 investment
in the Fund and all dividends and distributions were reinvested. Class
B shares performance may be greater than or less than that shown in
the line graph above for Class A shares based on differences in sales
loads and fees paid by shareholders investing in the different
classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (3.57%), 5.10% and 5.23%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.52%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (2.46%), 5.22% and 5.20%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.92%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--97.9%
Education--24.2%
$1,425M Montgomery County Indl. Dev. Agy. Lease Rev. HFM
Boces Series "A" 5% 7/1/2024 (when-issued) $1,494,469 $80
New York State Dormitory Authority Revenue:
City University:
2,000M 5 3/4% 7/1/2012 2,252,500 121
5,955M 5 3/4% 7/1/2013 6,937,575 374
3,000M 6% 7/1/2020 3,686,250 199
2,350M Colgate University 6% 7/1/2021 2,884,625 155
1,500M Educational Facility 5 1/4% 5/15/2021 1,706,250 92
1,000M Fashion Institution of Technology 5 1/4% 7/1/2019 1,108,750 60
New York University:
1,610M 6% 7/1/2018 1,956,150 105
2,155M 5% 7/1/2021 2,316,625 125
2,205M 5% 7/1/2022 2,351,081 127
2,345M 5% 7/1/2023 2,497,425 135
1,425M NYSARC Insured Series "A" 5 1/4% 7/1/2018 1,565,719 84
2,715M Rochester Institute of Technology 5 1/4% 7/1/2018 2,962,744 160
School Districts Financing Program:
3,550M Series "A" 5 1/4% 4/1/2022 3,913,875 211
1,000M Series "C" 5 1/4% 4/1/2021 1,088,750 59
Special Act School Districts Programs:
1,375M 6% 7/1/2012 1,565,781 84
1,460M 6% 7/1/2013 1,668,050 90
State Dormitory Facilities Series "A":
1,085M 5% 7/1/2020 1,160,950 62
1,685M 5% 7/1/2021 1,794,525 97
- ----------------------------------------------------------------------------------------------------------------------
44,912,094 2,420
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--30.8%
Buffalo:
1,040M General Improvement Series "D" 6% 12/1/2013 1,199,900 65
School District Series "B":
1,130M 5 3/8% 11/15/2016 1,254,300 67
2,360M 5 3/8% 11/15/2017 2,613,700 141
2,620M 5 3/8% 11/15/2019 2,904,925 156
1,000M School District Series "D" 5 1/2% 12/15/2015 1,125,000 61
1,000M Central Square Central School Dist. 5% 5/15/2017 1,082,500 58
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
General Obligations (continued)
Eastport South Manor Central School District:
$1,250M 5% 6/15/2016 $1,362,500 $73
1,315M 5% 6/15/2017 1,425,131 77
1,385M 5% 6/15/2018 1,499,262 81
1,000M Ilion Central School Dist. Series "B" 5 1/2% 6/15/2015 1,137,500 61
New York City:
1,000M Series "A" 7 1/4% 3/15/2005* 1,010,600 54
4,420M Series "C" 5 5/8% 3/15/2019 4,933,825 266
Series "E":
1,000M 6.2% 8/1/2008 1,125,000 61
2,000M 5 3/4% 8/1/2018 2,277,500 123
4,570M 5 3/4% 5/15/2024 5,129,825 276
2,500M Series "F" 5 1/4% 8/1/2014 2,750,000 148
2,885M Series "G" 5 3/4% 8/1/2018 3,285,294 177
1,680M Niagara Falls Public Improvement 7 1/2% 3/1/2015 2,223,900 120
1,395M North Syracuse Central School Dist. Series "A"
5% 6/15/2018 1,497,881 81
4,000M Puerto Rico Municipal Finance Agy. 6% 8/1/2015 4,590,000 247
1,000M Red Hook Central School Dist. 5 1/8% 6/15/2017 1,090,000 59
1,000M Rome School District 5 1/2% 6/15/2016 1,105,000 59
Shenendehowa Central School Dist. (Clifton Park):
Series "E":
585M 5% 1/1/2018 625,950 34
610M 5% 1/1/2019 649,650 35
500M Series "F" 5% 7/15/2018 537,500 29
1,775M Webster Central School District 5% 6/15/2019 1,917,000 103
Yonkers Series "A":
1,345M 5 1/8% 7/1/2016 1,464,369 79
1,900M 5 3/4% 10/1/2016 2,166,000 117
1,410M 5 1/4% 7/1/2017 1,543,950 83
1,480M 5 1/4% 7/1/2018 1,616,900 87
- ----------------------------------------------------------------------------------------------------------------------
57,144,862 3,078
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care--3.0%
New York State Dormitory Authority Revenue:
$2,000M Mental Hlth. Facs. 5 1/4% 2/15/2019 $2,182,500 $118
1,320M United Cerebral Palsy Aff. 5 1/8% 7/1/2021 1,428,900 77
1,850M New York State Medical Care Facs. Agy.
(Long Term Hlth. Care) 7 3/8% 11/1/2011 1,857,400 100
- ----------------------------------------------------------------------------------------------------------------------
5,468,800 295
- ----------------------------------------------------------------------------------------------------------------------
Housing--1.3%
2,345M New York State Hsg. Fin. Agy. Rev. 6.05% 5/1/2011 2,465,181 133
- ----------------------------------------------------------------------------------------------------------------------
Transportation--18.6%
Metropolitan Transit Authority of New York:
Transit Authority Revenue:
2,500M Series "A" 5% 11/15/2020 2,675,000 144
5,000M Series "B" 5 1/4% 11/15/2022 5,475,000 295
2,725M Transit Dedicated Tax 5 1/8% 11/15/2020 2,953,219 159
New York State Thruway Auth. Hwy. & Bridge
Series "A":
1,500M 6% 4/1/2015 1,723,125 93
3,250M 5 1/4% 4/1/2017 3,558,750 192
3,500M 5 1/4% 4/1/2018 3,810,625 205
Puerto Rico Commwlth. Hwy. & Trans. Auth.
Inverse Floater:**
1,500M 7.902%, 9/15/2018 1,768,125 95
1,500M 7.902%, 9/15/2019 1,764,375 95
1,845M 7.902%, 9/15/2020 2,156,344 116
660M 7.902%, 9/15/2021 760,650 41
6,900M Triborough Bridge & Tunnel Auth. Series "Y"
6% 1/1/2012 7,935,000 428
- ----------------------------------------------------------------------------------------------------------------------
34,580,213 1,863
- ----------------------------------------------------------------------------------------------------------------------
Utilities--15.3%
1,015M Nassau County Sewer and Storm Water Fin. Auth.
Series "B" 5% 10/1/2024 1,069,556 58
New York City Municipal Water Fin. Auth. Revenue:
2,750M 6% 6/15/2021 3,375,625 182
7,000M 5 1/2% 6/15/2033 7,577,500 408
8,000M Puerto Rico Electric Power Auth. Rev. 5 3/8% 7/1/2017 8,950,000 482
6,165M Suffolk County Water Auth. Rev. 6% 6/1/2017 7,475,063 403
- ----------------------------------------------------------------------------------------------------------------------
28,447,744 1,533
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--4.7%
$2,500M Nassau County Interim Fin. Auth. 5 3/4% 11/15/2010* $2,884,375 $155
3,000M New York City Transitional Fin. Auth. 5 1/4% 8/1/2020 3,281,250 177
865M New York State Dorm. Auth. Rev. (Jud. Facs. Lease)
7 3/8% 7/1/2016 1,074,763 58
1,425M Sales Tax Receivable Corp. Series "A" 5% 10/15/2025 1,498,031 81
- ----------------------------------------------------------------------------------------------------------------------
8,738,419 471
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $166,555,351) 181,757,313 9,793
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--1.4%
Adjustable Rate Notes***
New York City Transitional Financial Authority:
2,000M Series "3" 2.15% 2,000,000 108
400M Series "C" 2.15% 400,000 22
100M Puerto Rico Commonwealth Govt. Dev. Bank 1.92% 100,000 5
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Tax Exempt Investments
(cost $2,500,000) 2,500,000 135
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $169,055,351) 99.3% 184,257,313 9,928
Other Assets, Less Liabilities .7 1,330,498 72
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $185,587,811 $10,000
======================================================================================================================
- ----------------------------------------------------------------------------------------------------------------------
Unrealized
Expiration Notional Appreciation
Interest Rate Swaps Date Amount (Depreciation)
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 4.037% with Citibank, N.A. 7/30/2014 $11,700M $(442,625)
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 10,700M 72,261
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.858% with Citibank, N.A. 12/6/2014 10,000M (163,948)
- ----------------------------------------------------------------------------------------------------------------------
$32,400M $(534,312)
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Inverse floating rate security (see Note 1F). The interest rates are reset weekly by the issuer. The
interest rates shown are the rates in effect at December 31, 2004.
*** Interest rates on Adjustable Rate Notes are determined and reset periodically by the issuer. The
interest rates shown are the rates in effect at December 31, 2004.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--ARIZONA FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,047.77 $3.86
Hypothetical (5% return before expenses) $1,000.00 $1,021.37 $3.81
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,043.70 $7.71
Hypothetical (5% return before expenses) $1,000.00 $1,017.60 $7.61
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .75% for Class A
shares and 1.50% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half year
period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
Utilities 24.9%
General Obligations 24.3%
Other Revenue 23.7%
Education 11.9%
Health Care 7.5%
Transportation 4.2%
Certificates of Participation 2.7%
Housing 0.8%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--ARIZONA FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Arizona Fund (Class A shares), the
Lehman Brothers Municipal Index and the Merrill Lynch Municipal Securities
Master Index.+
First Investors Multi-State Insured Tax Free Fund - Arizona Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Brothers Lynch
Arizona Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 11,164 11,759 11,768
Dec-96 11,577 12,259 12,302
Dec-97 12,652 13,385 13,645
Dec-98 13,433 14,253 14,613
Dec-99 13,181 13,959 13,686
Dec-00 14,615 15,590 16,033
Dec-01 15,282 16,389 16,750
Dec-02 16,828 17,963 18,547
Dec-03 17,629 18,916 19,692
Dec-04 18,248 19,764 20,766
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 3.51% (2.42%)
Five Years 6.72% 5.46%
Ten Years 6.83% 6.20%
S.E.C. 30-Day Yield 2.49%
Class B Shares
One Year 2.71% (1.29%)
Five Years 5.91% 5.59%
Since Inception
(1/12/95) 6.09% 6.09%
S.E.C. 30-Day Yield 1.89%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Arizona Fund (Class A shares)
beginning 12/31/94 with theoretical investments in the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master
Index (the "Indices"). The Indices are total return performance
benchmarks for the investment grade tax exempt bond market. The
Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be
greater than or less than that shown in the line graph above for Class
A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (2.85%), 5.01% and 5.58%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.04%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (1.72%), 5.08% and 5.48%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.42%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--ARIZONA FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--97.6%
Certificates of Participation--2.6%
$500M Arizona State Municipal Financing Prog. 5 3/8% 8/1/2030 $531,875 $260
- ----------------------------------------------------------------------------------------------------------------------
Education--11.6%
500M Arizona State University Rev. Sys. 5.65% 7/1/2014 560,000 274
1,000M Energy Mgmt. Svcs. (Arizona St. Univ. Proj.
Main Campus) 5 1/4% 7/1/2018 1,100,000 538
640M South Campus Group (Arizona St. Univ. Proj.
South Campus) 5 5/8% 9/1/2023 723,200 353
- ----------------------------------------------------------------------------------------------------------------------
2,383,200 1,165
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--23.8%
Maricopa County School District:
1,000M #41 (Gilbert) Zero Coupon 1/1/2008 923,750 452
525M #80 (Chandler) 6 1/4% 7/1/2011 620,813 304
1,925M #89 (Dysart) 5 1/4% 7/1/2014* 2,194,500 1,074
1,000M Phoenix Series "B" 5 3/8% 7/1/2019 1,117,500 547
- ----------------------------------------------------------------------------------------------------------------------
4,856,563 2,377
- ----------------------------------------------------------------------------------------------------------------------
Health Care--7.3%
650M Maricopa County Ind. Dev. Hosp. Facs. Auth.
(Samaritan Hlth. Svcs.) 7% 12/1/2016 815,750 399
600M Mesa Ind. Dev. Auth. (Discovery Hlth. Sys.)
5 7/8% 1/1/2016 672,000 329
- ----------------------------------------------------------------------------------------------------------------------
1,487,750 728
- ----------------------------------------------------------------------------------------------------------------------
Housing--.8%
150M Phoenix Ind. Dev. Auth. (Ventana Palms Apts.)
6.1% 10/1/2019 160,688 79
- ----------------------------------------------------------------------------------------------------------------------
Transportation--4.1%
385M Phoenix Airport Rev. 6 1/4% 7/1/2012 393,701 193
400M Tucson Street & Highway User Rev. 5 3/8% 7/1/2014 443,500 217
- ----------------------------------------------------------------------------------------------------------------------
837,201 410
- ----------------------------------------------------------------------------------------------------------------------
Utilities--24.3%
Mesa Utility Systems Revenue:
250M 6 1/8% 7/1/2007* 275,312 135
1,000M 5% 7/1/2019 1,117,500 547
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities (continued)
Phoenix Civic Improvement Corp. Water Sys. Revenue:
$1,000M 5% 7/1/2018 $1,070,000 $524
500M 5 1/2% 7/1/2020 555,000 271
500M Phoenix Civic Wastewater Rev. 5 3/8% 7/1/2015 553,750 271
750M Pima County Sewer Rev. 5 3/8% 7/1/2014 831,562 407
500M Tucson Water Rev. 5.3% 7/1/2009* 557,500 273
- ----------------------------------------------------------------------------------------------------------------------
4,960,624 2,428
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--23.1%
1,000M Flagstaff Municipal Facs. Corp. 5 1/4% 7/1/2020 1,096,250 536
250M Greater Arizona Dev. Auth. Series "A" 6% 8/1/2015 280,938 137
500M Maricopa County Public Finance Rev. 5 1/2% 7/1/2015 556,875 273
750M Maricopa County Stadium District Rev. 5 3/8% 6/1/2017 833,437 408
400M Sierra Vista Municipal Property Corp. Muni.
Facs. Rev. 6% 1/1/2011 405,688 199
400M Surprise Municipal Property Corp. Excise Tax Rev.
5 3/8% 7/1/2009* 450,500 220
1,000M Tempe Excise Tax Rev. 5 1/4% 7/1/2020 1,102,500 540
- ----------------------------------------------------------------------------------------------------------------------
4,726,188 2,313
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $18,409,944) 97.6% 19,944,089 9,760
Other Assets, Less Liabilities 2.4 489,902 240
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $20,433,991 $10,000
======================================================================================================================
Expiration Notional Unrealized
Interest Rate Swap Date Amount Appreciation
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 $1,000M $6,754
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--CALIFORNIA FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,053.80 $4.39
Hypothetical (5% return before expenses) $1,000.00 $1,020.87 $4.32
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,049.73 $8.24
Hypothetical (5% return before expenses) $1,000.00 $1,017.10 $8.11
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .85% for Class A
shares and 1.60% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half year
period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
Utilities 31.3%
General Obligations 28.2%
Other Revenue 25.0%
Certificates of Participation 8.9%
Transportation 6.6%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--CALIFORNIA FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- California Fund (Class A shares), the
Lehman Brothers Municipal Index and the Merrill Lynch Municipal Securities
Master Index.+
First Investors Multi-State Insured Tax Free Fund -- California Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Brothers Lynch
California Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 11,134 11,759 11,768
Dec-96 11,570 12,259 12,302
Dec-97 12,688 13,385 13,645
Dec-98 13,489 14,253 14,613
Dec-99 13,100 13,959 13,686
Dec-00 14,876 15,590 16,033
Dec-01 15,438 16,389 16,750
Dec-02 17,064 17,963 18,547
Dec-03 17,823 18,916 19,692
Dec-04 18,528 19,764 20,766
(INSET BOX IN CHART READS:)
First Investors Multi-State Insured Tax Free Fund--CALIFORNIA FUND
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 3.96% (2.00%)
Five Years 7.18% 5.91%
Ten Years 7.00% 6.36%
S.E.C. 30-Day Yield 2.75%
Class B Shares
One Year 3.15% (0.85%)
Five Years 6.37% 6.06%
Since Inception
(1/12/95) 6.26% 6.26%
S.E.C. 30-Day Yield 2.18%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- California Fund (Class A shares)
beginning 12/31/94 with theoretical investments in the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master Index
(the "Indices"). The Indices are total return performance benchmarks
for the investment grade tax exempt bond market. The Indices do not
take into account fees and expenses or cost of insurance of bonds held
by an insured tax-exempt bond fund. It is not possible to invest
directly in these Indices. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed
that the maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were
reinvested. Class B shares performance may be greater than or less than
that shown in the line graph above for Class A shares based on
differences in sales loads and fees paid by shareholders investing in
the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (2.30%), 5.53% and 5.96%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.45%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (1.16%), 5.62% and 5.85%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.84%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--CALIFORNIA FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--98.9%
Certificates of Participation--8.7%
$500M Castaic Lake Water Agency Water Sys. Impt. Proj.
7% 8/1/2012 $621,250 $215
750M Los Angeles Real Property Prog. 5.3% 4/1/2022 825,938 285
1,000M West Contra Costa Healthcare 5 3/8% 7/1/2024 1,083,750 375
- ----------------------------------------------------------------------------------------------------------------------
2,530,938 875
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--27.9%
1,000M Chaffey Community College District 5 1/4% 7/1/2022 1,091,250 377
500M Fontana School District 5 3/4% 5/1/2022 560,625 194
650M Jefferson Unified High Sch. Dist. (San Mateo Cnty.)
6 1/4% 2/1/2016 793,813 275
1,000M Morgan Hill Unified School District 5 1/4% 8/1/2018 1,111,250 384
750M Natomas Unified School District 5.95% 9/1/2021 888,750 307
1,000M San Diego Unified School District Series "E"
5 1/4% 7/1/2013* 1,128,750 390
1,500M Santa Clarita Community College District 5 1/8% 8/1/2026 1,573,125 544
Walnut Valley School District:
250M 6% 8/1/2012 297,812 103
500M 7.2% 2/1/2016 621,250 215
- ----------------------------------------------------------------------------------------------------------------------
8,066,625 2,789
- ----------------------------------------------------------------------------------------------------------------------
Transportation--6.5%
1,000M Port of Oakland Revenue Bonds Series "M"
5 1/4% 11/1/2020 1,096,250 379
700M Puerto Rico Commonwealth Hwy. & Trans.
Auth. Rev. 5 3/4% 7/1/2018 794,500 275
- ----------------------------------------------------------------------------------------------------------------------
1,890,750 654
- ----------------------------------------------------------------------------------------------------------------------
Utilities--31.0%
1,500M California State Dept. Water Res. Pwr. Supply Rev.
Series "A" 5 3/8% 5/1/2018 1,665,000 576
250M Fresno Sewer Rev. 6 1/4% 9/1/2014 302,500 105
1,150M Los Angeles Water & Power Rev. Series "B"
5 1/8% 7/1/2020 1,249,188 432
700M Puerto Rico Electric Power Auth. Rev. 5 3/8% 7/1/2017 783,125 271
1,000M Sacramento Cnty. Sanitation Dist. Fing. Auth. Rev.
5% 12/1/2027 1,032,500 357
1,210M San Juan Basin Auth. Rev. (Ground Wtr. Rec. Proj.)
5 1/4% 12/1/2017 1,344,612 465
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities (continued)
$1,525M Semitropic Impt. Dist. Water Storage Dist.
5 1/2% 12/01/2022 $1,709,906 $591
750M South Gate Public Fing. Auth. Wtr. Rev. Series "A"
6% 10/1/2012 873,750 302
- ----------------------------------------------------------------------------------------------------------------------
8,960,581 3,099
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--24.8%
500M Barstow Redevelopment Agy. 7% 9/1/2014 602,487 208
1,000M California State Public Works Board 6 1/2% 12/1/2008 1,146,250 396
1,000M Long Beach Fing. Auth. Rev. 6% 11/1/2017 1,213,750 420
1,105M Palm Springs Fing. Auth. Lease Rev. Series "A"
(Convention Ctr. Proj.) 5 1/4% 11/01/2020 1,238,981 428
1,000M Rohnert Park Cmnty. Dev. Comm. Tax Alloc. Rev.
5 1/4% 8/1/2020 1,093,750 378
325M San Jose Redevelopment Agy. 6% 8/1/2015 389,188 135
700M San Mateo Joint Powers Auth. Lease Rev. 6 1/2% 7/1/2015 868,000 300
500M Santa Ana Fing. Auth. Lease Rev. (Police Admin. &
Hldg. Facs.) 6 1/4% 7/1/2015 608,750 211
- ----------------------------------------------------------------------------------------------------------------------
7,161,156 2,476
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $26,076,004) 98.9% 28,610,050 9,893
Other Assets, Less Liabilities 1.1 309,715 107
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $28,919,765 $10,000
======================================================================================================================
Unrealized
Expiration Notional Appreciation
Interest Rate Swaps Date Amount (Depreciation)
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 4.037% with Citibank, N.A. 7/30/2014 $1,500M $(56,747)
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 1,400M 9,455
- ----------------------------------------------------------------------------------------------------------------------
$2,900M $(47,292)
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the
prerefunded call date.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--COLORADO FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,047.13 $3.09
Hypothetical (5% return before expenses) $1,000.00 $1,022.12 $3.05
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,043.85 $6.94
Hypothetical (5% return before expenses) $1,000.00 $1,018.35 $6.85
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .60% for Class A
shares and 1.35% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half year
period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
General Obligations 37.0%
Other Revenue 18.3%
Utilities 15.1%
Education 8.6%
Healthcare 8.2%
Transportation 5.3%
Certificates of Participation 4.7%
Short-Term Tax-Exempt Investments 2.8%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--COLORADO FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Colorado Fund (Class A shares), the
Lehman Brothers Municipal Index and the Merrill Lynch Municipal Securities
Master Index.+
First Investors Multi-State Insured Tax Free Fund -- Colorado Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Brothers Lynch
Colorado Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 11,141 11,759 11,768
Dec-96 11,650 12,259 12,302
Dec-97 12,742 13,385 13,645
Dec-98 13,541 14,253 14,613
Dec-99 13,251 13,959 13,686
Dec-00 14,803 15,590 16,033
Dec-01 15,579 16,389 16,750
Dec-02 17,255 17,963 18,547
Dec-03 18,133 18,916 19,692
Dec-04 18,770 19,764 20,766
(INSET BOX IN CHART READS:)
First Investors Multi-State Insured Tax Free Fund--COLORADO FUND
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 3.51% (2.46%)
Five Years 7.21% 5.94%
Ten Years 7.14% 6.50%
S.E.C. 30-Day Yield 2.83%
Class B Shares
One Year 2.78% (1.22%)
Five Years 6.41% 6.09%
Since Inception
(1/12/95) 6.41% 6.41%
S.E.C. 30-Day Yield 2.26%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Colorado Fund (Class A shares)
beginning 12/31/94 with theoretical investments in the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master
Index (the "Indices"). The Indices are total return performance
benchmarks for the investment grade tax exempt bond market. The
Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be
greater than or less than that shown in the line graph above for Class
A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (3.10%), 5.30% and 5.60%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.16%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (1.87%), 5.35% and 5.50%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.47%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--COLORADO FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--95.8%
Certificates of Participation--4.6%
$250M Broomfield Open Space 5 1/2% 12/1/2020 $275,625 $254
200M Greeley Building Auth. 5.6% 11/1/2019 223,500 206
- ----------------------------------------------------------------------------------------------------------------------
499,125 460
- ----------------------------------------------------------------------------------------------------------------------
Education--8.5%
Colorado School of Mines Auxiliary Facs. Revenue:
200M 5 1/4% 12/1/2020 218,250 201
300M 5% 12/1/2024 316,875 292
350M University of Northern Colorado Rev. 5 1/2% 6/1/2018 389,812 359
- ----------------------------------------------------------------------------------------------------------------------
924,937 852
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--36.5%
500M Adams & Arapahoe Cntys. Jnt. Sch. Dist. #28J Aurora
Series "A" 5 1/8% 12/1/2021 543,125 501
1,000M Arapahoe Cnty. School District #6 Littleton
5 1/4% 12/1/2019 1,096,250 1,010
200M Arapahoe Cnty. Water & Wastewater Series "B"
5 3/4% 12/1/2019 228,250 211
200M Clear Creek School District #RE 1, 6 1/4% 12/1/2010* 235,750 217
El Paso County School District:
350M #2 (Harrison) 5 1/2% 12/1/2018 391,125 361
250M #20, 5 1/4% 12/15/2017 275,625 254
200M #49 (Falcon) 5 1/2% 12/1/2013 227,250 210
350M #49 (Falcon) 5 3/4% 12/1/2015 400,750 370
250M Hyland Hills Park & Rec. Dist. 5 1/2% 12/15/2018 283,438 261
250M Pueblo County School District #70, 5 1/4% 12/1/2022 271,250 250
- ----------------------------------------------------------------------------------------------------------------------
3,952,813 3,645
- ----------------------------------------------------------------------------------------------------------------------
Health Care--8.1%
200M Colorado Health Facs. (Poudre Valley Hlth. Care)
5 5/8% 12/1/2019 220,000 203
250M Colorado Springs Hospital Rev. 6% 12/15/2015 264,068 243
350M Denver City & Cnty. Mental Hlth. Corp. Series "A"
5 1/2% 7/15/2015 392,437 361
- ----------------------------------------------------------------------------------------------------------------------
876,505 807
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Transportation--5.2%
Denver City & County Airport Revenue:
$255M 5 1/2% 11/15/2016 $284,006 $262
250M 5 3/4% 11/15/2020 280,625 258
- ----------------------------------------------------------------------------------------------------------------------
564,631 520
- ----------------------------------------------------------------------------------------------------------------------
Utilities--14.9%
200M Boulder Water & Sewer Rev. 5.6% 12/1/2016 224,500 207
200M Broomfield Water Activity Enterprise Water Rev.
5 1/2% 12/1/2019 222,750 205
Colorado Water Resources & Power Dev. Authority
Small Water Resources Rev. Series "A":
200M 5 3/4% 11/1/2017 226,750 209
250M 5 1/4% 11/1/2021 272,188 251
400M Denver City & County Wastewater Rev. 5 1/4% 11/1/2016 442,000 407
200M Pueblo Board Waterworks Water Rev. 6% 11/1/2014 231,000 213
- ----------------------------------------------------------------------------------------------------------------------
1,619,188 1,492
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--18.0%
250M Golden Sales & Use Tax Rev. 5 1/4% 12/1/2016 273,437 252
Larimer County Sales & Use Tax Revenue:
280M 5 1/4% 12/15/2016 309,750 285
400M 5 1/2% 12/15/2018 453,500 418
100M Pueblo Urban Renewal Auth. Tax Increment Rev.
6.05% 12/1/2012 100,325 92
250M Thornton County Sales & Use Tax Rev. 5 1/4% 9/1/2015 274,375 253
500M Westminster Sales & Use Tax Rev. 5 1/4% 12/1/2021 545,000 502
- ----------------------------------------------------------------------------------------------------------------------
1,956,387 1,802
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $9,618,084) 10,393,586 9,578
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--COLORADO FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--2.8%
$300M Moffat Cnty. Poll. Cntl. Rev. Adjustable Rate Note
2.15%** (cost $300,000) $300,000 $277
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $9,918,084) 98.6% 10,693,586 9,855
Other Assets, Less Liabilities 1.4 157,435 145
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $10,851,021 $10,000
======================================================================================================================
Expiration Notional Unrealized
Interest Rate Swap Date Amount Appreciation
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 $500M $3,377
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the
prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset
periodically by the issuer. The interest rate shown is reset daily
and is the rate in effect at December 31, 2004.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--CONNECTICUT FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,046.41 $4.37
Hypothetical (5% return before expenses) $1,000.00 $1,020.87 $4.32
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,043.55 $8.22
Hypothetical (5% return before expenses) $1,000.00 $1,017.10 $8.11
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .85% for Class A
shares and 1.60% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half
year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
General Obligations 46.5%
Education 15.6%
Health Care 12.6%
Transportation 10.4%
Utilities 6.6%
Other Revenue 4.7%
Housing 3.6%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--CONNECTICUT FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Connecticut Fund (Class A shares),
the Lehman Brothers Municipal Index and the Merrill Lynch Municipal
Securities Master Index.+
First Investors Multi-State Insured Tax Free Fund -- Connecticut Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Brothers Lynch
Connecticut Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 11,040 11,759 11,768
Dec-96 11,413 12,259 12,302
Dec-97 12,414 13,385 13,645
Dec-98 13,178 14,253 14,613
Dec-99 12,923 13,959 13,686
Dec-00 14,274 15,590 16,033
Dec-01 14,882 16,389 16,750
Dec-02 16,350 17,963 18,547
Dec-03 17,035 18,916 19,692
Dec-04 17,675 19,764 20,766
(INSET BOX IN CHART READS:)
First Investors Multi-State Insured Tax Free Fund--CONNECTICUT FUND
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 3.76% (2.24%)
Five Years 6.46% 5.21%
Ten Years 6.49% 5.86%
S.E.C. 30-Day Yield 2.69%
Class B Shares
One Year 3.02% (0.98%)
Five Years 5.66% 5.34%
Since Inception
(1/12/95) 5.77% 5.77%
S.E.C. 30-Day Yield 2.11%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Connecticut Fund (Class A shares)
beginning 12/31/94 with theoretical investments in the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master
Index (the "Indices"). The Indices are total return performance
benchmarks for the investment grade tax exempt bond market. The
Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be
greater than or less than that shown in the line graph above for
Class A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (2.56%), 4.87% and 5.47%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.38%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (1.31%), 4.96% and 5.38%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.75%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities Master
Index this year because it is more readily available to the Fund. After
this year, we will not show a comparison to the Lehman Brothers Municipal
Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--CONNECTICUT FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--98.5%
Education--15.4%
Connecticut St. Hlth. & Educ. Facs. Auth. Revenue:
$1,000M Fairfield Univ. 5 5/8% 7/1/2016 $1,120,000 $302
1,000M Kent School Series "D" 5% 7/1/2021 1,071,250 289
1,235M Trinity College Series "H" 5% 7/1/2019 1,330,713 358
University of Connecticut:
300M 5.4% 3/1/2010* 340,125 92
1,100M 5 1/8% 2/15/2020 1,189,375 320
600M University of Connecticut Student Fees Rev. Series "A"
5 1/4% 11/15/2021 663,750 179
- ----------------------------------------------------------------------------------------------------------------------
5,715,213 1,540
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--45.8%
500M Branford 5% 5/15/2014 549,375 149
Bridgeport:
750M Series "A" 6 1/8% 7/15/2010* 880,313 237
1,000M Series "A" 5 3/8% 8/15/2019 1,103,750 298
1,000M Series "A" 5 1/4% 8/15/2024 1,075,000 290
Connecticut State:
500M Series "A" 5 1/4% 6/15/2009* 560,000 151
250M Series "A" 5 3/8% 4/15/2016 277,187 75
500M Series "B" 5 3/4% 11/1/2009* 573,125 155
690M Series "E" 6% 3/15/2012 806,438 217
1,020M Series "F" 5% 10/15/2021 1,086,300 293
1,090M Cromwell 5% 6/15/2020 1,166,300 314
1,000M Glastonbury 5% 6/15/2021 1,075,000 290
1,750M Hartford 5% 8/15/2019 1,879,062 506
1,080M Hartford County Met. Dist. 5% 5/1/2024 1,140,750 307
800M New Britain 6% 3/1/2012 940,000 253
New Haven:
735M 6% 11/1/2009* 850,763 229
500M 5 1/4% 11/1/2013 551,875 149
400M 5% 11/1/2017 434,500 117
650M Puerto Rico Municipal Finance Agy. 5 1/2% 8/1/2017 720,688 194
1,250M Waterbury 5% 4/1/2021 1,320,312 356
- ----------------------------------------------------------------------------------------------------------------------
16,990,738 4,580
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--CONNECTICUT FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care--12.4%
Connecticut State Hlth. & Educ. Facs. Auth. Revenue:
$450M Bridgeport Hospital 6 1/2% 7/1/2012 $451,224 $121
400M Child Care Facilities Program 5 1/2% 7/1/2019 441,500 119
1,165M Children's Medical Center Series "B" 5% 7/1/2021 1,237,812 333
700M New Britain General Hospital 6 1/8% 7/1/2014 715,785 193
Village Families & Children Series "A":
370M 5% 7/1/2015 403,762 109
385M 5% 7/1/2016 418,688 113
405M 5% 7/1/2017 437,906 118
500M Puerto Rico Indl. Tourist Edl. Med. & Env. Cntl. Facs.
6 1/4% 7/1/2016 512,500 138
- ----------------------------------------------------------------------------------------------------------------------
4,619,177 1,244
- ----------------------------------------------------------------------------------------------------------------------
Housing--3.6%
Connecticut State Housing Finance Authority:
750M 6% 11/15/2010 785,625 212
500M 5.85% 6/15/2030 531,250 143
- ----------------------------------------------------------------------------------------------------------------------
1,316,875 355
- ----------------------------------------------------------------------------------------------------------------------
Transportation--10.2%
Connecticut State Special Tax Obligation Revenue
Transportation Infrastructure:
500M 5 3/8% 7/1/2012* 570,000 154
250M 6 1/8% 9/1/2012 292,500 79
1,000M 5% 12/1/2021 1,062,500 286
Puerto Rico Commwlth. Hwy. & Trans. Auth.
Inverse Floater:**
850M 7.93%, 7/1/2020 996,625 269
750M 7.902%, 9/15/2020 876,563 236
- ----------------------------------------------------------------------------------------------------------------------
3,798,188 1,024
- ----------------------------------------------------------------------------------------------------------------------
Utilities--6.5%
Puerto Rico Electric Power Authority Revenue:
750M 5 3/8% 7/1/2017 839,062 226
250M 5 1/4% 7/1/2022 271,563 73
250M 5 1/4% 7/1/2029 264,687 72
1,000M South Central Connecticut Regional Water Authority
5% 8/1/2033 1,031,250 278
- ----------------------------------------------------------------------------------------------------------------------
2,406,562 649
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--4.6%
$545M Connecticut State Dev. Auth. Govtl. Lease Rev.
6 1/2% 6/15/2008 $557,442 $150
1,000M Puerto Rico Public Fin. Corp. Commonwealth
Approp. Series "A" 5 1/2% 8/1/2011* 1,143,750 308
- ----------------------------------------------------------------------------------------------------------------------
1,701,192 458
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $34,285,827) 98.5% 36,547,945 9,850
Other Assets, Less Liabilities 1.5 556,683 150
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $37,104,628 $10,000
======================================================================================================================
Unrealized
Expiration Notional Appreciation
Interest Rate Swaps Date Amount (Depreciation)
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 4.037% with Citibank, N.A. 7/30/2014 $1,000M $(37,831)
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 1,900M 12,831
- ----------------------------------------------------------------------------------------------------------------------
$2,900M $(25,000)
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Inverse floating rate security (see Note 1F). The interest rates are reset weekly by the issuer. The
interest rates shown are the rates in effect at December 31, 2004.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--FLORIDA FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,046.61 $4.63
Hypothetical (5% return before expenses) $1,000.00 $1,020.62 $4.57
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,042.49 $8.47
Hypothetical (5% return before expenses) $1,000.00 $1,016.84 $8.36
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .90% for Class A
shares and 1.65% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half
year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
Other Revenue 41.6%
Utilities 33.0%
Transportation 13.8%
Health Care 4.6%
General Obligations 4.3%
Certificates of Participation 2.7%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--FLORIDA FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Florida Fund (Class A shares), the
Lehman Brothers Municipal Index and the Merrill Lynch Municipal Securities
Master Index.+
First Investors Multi-State Insured Tax Free Fund -- Florida Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Brothers Lynch
Florida Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 11,193 11,759 11,768
Dec-96 11,567 12,259 12,302
Dec-97 12,629 13,385 13,645
Dec-98 13,398 14,253 14,613
Dec-99 13,005 13,959 13,686
Dec-00 14,515 15,590 16,033
Dec-01 15,132 16,389 16,750
Dec-02 16,718 17,963 18,547
Dec-03 17,419 18,916 19,692
Dec-04 18,007 19,764 20,766
(INSET BOX IN CHART READS:)
First Investors Multi-State Insured Tax Free Fund--FLORIDA FUND
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 3.38% (2.55%)
Five Years 6.72% 5.46%
Ten Years 6.69% 6.06%
S.E.C. 30-Day Yield 2.61%
Class B Shares
One Year 2.64% (1.36%)
Five Years 5.91% 5.59%
Since Inception
(1/12/95) 6.01% 6.01%
S.E.C. 30-Day Yield 2.02%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Florida Fund (Class A shares)
beginning 12/31/94 with theoretical investments in the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master
Index (the "Indices"). The Indices are total return performance
benchmarks for the investment grade tax exempt bond market. The
Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be
greater than or less than that shown in the line graph above for Class
A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (2.79%), 5.16% and 5.71%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.36%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (1.61%), 5.25% and 5.66%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.75%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--FLORIDA FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--99.0%
Certificates of Participation--2.6%
$1,000M Orange County School Board 5% 8/1/2023 $1,053,750 $264
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--4.3%
1,000M Miami Homeland Defense 5 1/2% 1/1/2020 1,110,000 280
500M North Springs Improvement District 7% 10/1/2009 595,000 150
- ----------------------------------------------------------------------------------------------------------------------
1,705,000 430
- ----------------------------------------------------------------------------------------------------------------------
Health Care--4.5%
1,000M Escambia County Health Facs. Auth. Rev.
5.95% 7/1/2020 1,021,840 257
750M Puerto Rico Indl. Tourist Educ. Med. & Env. Cntl. Facs.
6 1/4% 7/1/2016 768,750 194
- ----------------------------------------------------------------------------------------------------------------------
1,790,590 451
- ----------------------------------------------------------------------------------------------------------------------
Transportation--13.7%
500M Dade County Aviation Rev. Series "A" 6% 10/1/2010 523,250 132
1,000M Lee County Transportation Facs. 5% 10/1/2021 1,076,250 271
1,000M Miami-Dade County Aviation Rev. (Miami Intl.
Airport) 5.35% 10/1/2013 1,105,000 278
1,000M Miami-Dade County Expwy. Auth. Toll Sys. Rev.
6% 7/1/2014 1,147,500 289
1,500M St. John's County Transportation Impt. 5% 10/1/2023 1,586,250 400
- ----------------------------------------------------------------------------------------------------------------------
5,438,250 1,370
- ----------------------------------------------------------------------------------------------------------------------
Utilities--32.7%
1,000M Escambia County Utilities Auth. Sys. Rev.
6 1/4% 1/1/2015 1,206,250 304
1,000M Florida Keys Aqueduct Auth. Wtr. Rev. 5% 9/1/2021 1,068,750 269
1,000M Florida State Municipal Power Agy. Rev.
5 1/2% 10/1/2019 1,138,750 287
1,495M Lakeland Electric & Water Rev. 6.05% 10/1/2014 1,795,869 452
1,000M Miami Beach Stormwater Rev. 5 3/8% 9/1/2030 1,062,500 268
1,130M Palm Bay Utility Rev. 5 1/4% 10/1/2018 1,258,537 317
1,000M Plant City Utility System Rev. 6% 10/1/2015 1,206,250 304
1,210M Port St. Lucie Utility Rev. 5% 9/1/2020 1,296,213 326
1,200M Sarasota County Utility System Rev. 5 1/4% 10/1/2020 1,311,000 330
1,480M Stuart Utilities Rev. 5 1/4% 10/1/2020 1,624,300 409
- ----------------------------------------------------------------------------------------------------------------------
12,968,419 3,266
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--41.2%
$1,380M DeSoto County Capital Improvement Rev.
5 1/4% 10/1/2019 $1,528,350 $385
Florida Municipal Loan Council Revenue:
1,160M 6% 4/1/2015 1,329,650 335
1,715M 5 1/4% 11/1/2019 1,910,081 481
1,000M 5 3/8% 11/1/2025 1,088,750 274
1,205M Highlands County Infrastructure Sales Surtax Rev.
5% 11/1/2018 1,301,400 328
1,000M Indian Trace Community Dev. Dist. 5 3/4% 5/1/2011 1,031,450 260
300M Jacksonville Capital Improvement (Gator Bowl Proj.)
5 7/8% 10/1/2005* 310,479 78
2,000M Jacksonville Sales Tax Rev. 5 3/8% 10/1/2017 2,235,000 563
Osceola County Tourist Development Tax Revenue:
1,000M 5 1/2% 10/1/2017 1,130,000 284
1,000M 5 1/2% 10/1/2018 1,136,250 286
1,000M Pasco County Sales Tax Rev. 5% 12/1/2020 1,078,750 272
1,000M St. Augustine Capital Improvement 5% 10/1/2024 1,057,500 266
1,000M Tampa Sports Auth. Sales Tax Rev.
(Tampa Bay Arena) 5 3/4% 10/1/2020 1,202,500 303
- ----------------------------------------------------------------------------------------------------------------------
16,340,160 4,115
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $36,503,150) 99.0% 39,296,169 9,896
Other Assets, Less Liabilities 1.0 413,459 104
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $39,709,628 $10,000
======================================================================================================================
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--FLORIDA FUND
Unrealized
Expiration Notional Appreciation
Interest Rate Swaps Date Amount (Depreciation)
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 4.037% with Citibank, N.A. 7/30/2014 $2,000M $(75,662)
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 2,000M 13,507
- ----------------------------------------------------------------------------------------------------------------------
$4,000M $(62,155)
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--GEORGIA FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,047.03 $3.09
Hypothetical (5% return before expenses) $1,000.00 $1,022.12 $3.05
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,042.92 $6.93
Hypothetical (5% return before expenses) $1,000.00 $1,018.35 $6.85
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .60% for Class A
shares and 1.35% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half
year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
Utilities 43.2%
Education 17.4%
Other Revenue 14.4%
Health Care 14.0%
Certificates of Participation 4.7%
General Obligations 4.1%
Housing 1.3%
Short-Term Tax-Exempt Investments 0.9%
Portfolio holdings and allocations are subject to change.
Percentages are as of December 31, 2004, and are based on
the total market value of investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--GEORGIA FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Georgia Fund (Class A shares), the
Lehman Brothers Municipal Index and the Merrill Lynch Municipal Securities
Master Index.+
First Investors Multi-State Insured Tax Free Fund -- Georgia Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Brothers Lynch
Georgia Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 11,160 11,759 11,768
Dec-96 11,600 12,259 12,302
Dec-97 12,759 13,385 13,645
Dec-98 13,535 14,253 14,613
Dec-99 13,123 13,959 13,686
Dec-00 14,910 15,590 16,033
Dec-01 15,584 16,389 16,750
Dec-02 17,273 17,963 18,547
Dec-03 18,127 18,916 19,692
Dec-04 18,704 19,764 20,766
(INSET BOX IN CHART READS:)
First Investors Multi-State Insured Tax Free Fund--GEORGIA FUND
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 3.18% (2.78%)
Five Years 7.34% 6.08%
Ten Years 7.09% 6.46%
S.E.C. 30-Day Yield 2.85%
Class B Shares
One Year 2.45% (1.55%)
Five Years 6.53% 6.22%
Since Inception
(1/12/95) 6.37% 6.37%
S.E.C. 30-Day Yield 2.29%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Georgia Fund (Class A shares)
beginning 12/31/94 with theoretical investments in the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master
Index (the "Indices"). The Indices are total return performance
benchmarks for the investment grade tax exempt bond market. The
Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be
greater than or less than that shown in the line graph above for Class
A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (3.41%), 5.48% and 5.59%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.30%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (2.18%), 5.54% and 5.49%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.60%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--GEORGIA FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--96.8%
Certificates of Participation--4.6%
$500M Gwinnett County Dev. Auth. Pub. Schs. Proj.
5 1/4% 1/01/2019 $550,625 $455
- ----------------------------------------------------------------------------------------------------------------------
Education--16.9%
250M Athens Dev. Auth. Hsg. & Lease Rev. (East Campus)
5 1/4% 12/1/2022 271,562 224
500M Bulloch County Dev. Auth. 5 1/4% 8/1/2019 551,250 455
Fulton County Development Authority Revenue:
350M Georgia Tech Athletic Assoc. 5 1/2% 10/1/2017 392,875 324
250M Morehouse College 6 1/4% 12/1/2021 295,625 244
500M Valdosta Hsg. Auth. Rev. 5 1/4% 8/1/2023 541,875 447
- ----------------------------------------------------------------------------------------------------------------------
2,053,187 1,694
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--4.0%
255M Atlanta 5 3/8% 12/1/2018 279,225 231
100M Mitchell County School District 6 1/2% 3/1/2009 102,685 85
100M Peach County School District 6.4% 2/1/2005* 102,326 84
- ----------------------------------------------------------------------------------------------------------------------
484,236 400
- ----------------------------------------------------------------------------------------------------------------------
Health Care--13.7%
500M Cobb County Hospital Auth. Rev. 5 1/4% 4/1/2024 543,125 448
500M Fulton DeKalb Hospital Auth. Rev. 5 1/4% 1/1/2018 549,375 454
125M Puerto Rico Indl. Tourist Educ. Med. & Env. Cntl. Facs.
6 1/4% 7/1/2016 128,125 106
400M Tift County Hospital Auth. Rev. 5 1/4% 12/1/2019 438,000 362
- ----------------------------------------------------------------------------------------------------------------------
1,658,625 1,370
- ----------------------------------------------------------------------------------------------------------------------
Housing--1.3%
150M Georgia State Hsg. & Fin. Auth. Rev. 5.7% 12/1/2011 155,812 129
- ----------------------------------------------------------------------------------------------------------------------
Utilities--42.2%
235M Atlanta Water & Wastewater Rev. 5 1/2% 11/1/2017 273,775 226
255M Brunswick Water & Sewer Rev. 6.1% 10/1/2019 315,881 261
250M Cairo Combined Public Utility Rev. 5% 1/1/2024 262,813 217
Columbia County Water & Sewer Revenue:
250M 6 1/4% 6/1/2010* 291,875 241
400M 5% 6/1/2024 421,000 348
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--GEORGIA FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities (continued)
$565M Fayetteville Water & Sewer Rev. 5% 11/1/2021 $602,431 $497
250M Forsyth County Water & Sewer Rev. 6 1/4% 4/1/2010* 293,438 242
250M Fulton County Water & Sewer Rev. 6 3/8% 1/1/2014 296,562 245
235M Gainesville Water & Sewer Rev. 5 1/4% 11/15/2015 258,500 213
Georgia Municipal Gas Authority Revenue:
Buford Project:
80M 6.8%11/1/2009 82,048 68
250M 5 1/2% 11/1/2012 278,438 230
100M Warner Robins Series "B" 5.8% 1/1/2015 105,276 87
400M Gwinnett County Water & Sewer Rev. 5% 8/1/2018 431,000 356
200M Newnan Water Sewer & Light Comm. Pub. Utils. Rev.
5% 1/1/2015 217,500 180
500M Newton County Water Rev. 5% 7/1/2022 530,625 438
400M Puerto Rico Electric Power Authority Rev. 5 3/8% 7/1/2017 447,500 370
- ----------------------------------------------------------------------------------------------------------------------
5,108,662 4,219
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--14.1%
250M Atlanta & Fulton Cntys. Rec. Auth. Rev. 5 1/4% 12/1/2016 275,625 228
300M Atlanta Dev. Auth. Rev. (Yamacraw Design Ctr. Proj.)
Series "A" 5 3/8% 1/1/2019 330,375 273
500M Cobb-Marietta Coliseum & Exhibit Hall Auth. Rev.
5 1/2% 10/1/2018 585,625 484
250M College Park Dev. Auth. Rev. (Civic Ctr. Proj.)
5 3/4% 9/1/2026 277,813 229
200M Fayette Cnty. Pub. Facs. Auth. Rev. (Criminal Justice Ctr.)
6 1/4% 6/1/2010* 235,250 194
- ----------------------------------------------------------------------------------------------------------------------
1,704,688 1,408
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $10,894,363) 11,715,835 9,675
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--.8%
$100M Puerto Rico Commonwealth Govt. Dev. Bank
Adjustable Rate Note 1.92%** (cost $100,000) $100,000 $82
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $10,994,363) 97.6% 11,815,835 9,757
Other Assets, Less Liabilities 2.4 294,218 243
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $12,110,053 $10,000
======================================================================================================================
Unrealized
Expiration Notional Appreciation
Interest Rate Swaps Date Amount (Depreciation)
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 4.037% with Citibank, N.A. 7/30/2014 $500M $(18,915)
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 600M 4,052
- ----------------------------------------------------------------------------------------------------------------------
$1,100M $(14,863)
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset periodically by the issuer. The
interest rate shown is reset weekly and is the rate in effect at December 31, 2004.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--MARYLAND FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,038.29 $4.36
Hypothetical (5% return before expenses) $1,000.00 $1,020.87 $4.32
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,034.23 $8.18
Hypothetical (5% return before expenses) $1,000.00 $1,017.10 $8.11
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .85% for Class A
shares and 1.60% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half year
period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
General Obligations 32.2%
Utilities 17.7%
Transportation 13.1%
Other Revenue 12.3%
Education 10.4%
Health Care 8.7%
Housing 2.9%
Certificates of Participation 2.7%
Portfolio holdings and allocations are subject to change.
Percentages are as of December 31, 2004, and are based on
the total market value of investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--MARYLAND FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Maryland Fund (Class A shares), the
Lehman Brothers Municipal Index and the Merrill Lynch Municipal Securities
Master Index.+
First Investors Multi-State Insured Tax Free Fund -- Maryland Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Brothers Lynch
Maryland Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 11,072 11,759 11,768
Dec-96 11,440 12,259 12,302
Dec-97 12,538 13,385 13,645
Dec-98 13,338 14,253 14,613
Dec-99 13,000 13,959 13,686
Dec-00 14,566 15,590 16,033
Dec-01 15,141 16,389 16,750
Dec-02 16,670 17,963 18,547
Dec-03 17,416 18,916 19,692
Dec-04 17,849 19,764 20,766
(INSET BOX IN CHART READS:)
First Investors Multi-State Insured Tax Free Fund--MARYLAND FUND
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 2.48% (3.43%)
Five Years 6.55% 5.29%
Ten Years 6.59% 5.96%
S.E.C. 30-Day Yield 2.55%
Class B Shares
One Year 1.70% (2.30%)
Five Years 5.74% 5.42%
Since Inception
(1/12/95) 5.91% 5.91%
S.E.C. 30-Day Yield 1.96%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Maryland Fund (Class A shares)
beginning 12/31/94 with theoretical investments in the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master
Index (the "Indices"). The Indices are total return performance
benchmarks for the investment grade tax exempt bond market. The
Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be
greater than or less than that shown in the line graph above for Class
A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (3.75%), 4.89% and 5.35%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.24%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (2.63%), 4.97% and 5.29%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.61%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MARYLAND FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--98.9%
Certificates of Participation--2.6%
$750M Baltimore Board of Education Admin. Proj.
5.8% 4/1/2011 $853,125 $264
- ----------------------------------------------------------------------------------------------------------------------
Education--10.2%
750M Maryland St. Econ. Dev. Corp. Util. Infrastructure Rev.
(Univ. MD-College Park) 5 3/8% 7/1/2016 824,063 255
Morgan State University Academic & Auxiliary
Facilities Fees Revenue:
500M 6.05% 7/1/2015 585,625 182
200M 6.1% 7/1/2020 240,000 74
Puerto Rico Indl. Tourist Educ. Med. & Env. Cntl. Facs.:
325M Hospital Auxilio Mutuo 6 1/4% 7/1/2016 333,125 103
750M University Plaza Proj. Series "A" 5 5/8% 7/1/2013 844,687 262
430M St. Mary's College Rev. 5.45% 9/1/2020 475,688 147
- ----------------------------------------------------------------------------------------------------------------------
3,303,188 1,023
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--31.9%
1,475M Anne Arundel County 5 3/8% 3/1/2015 1,652,000 512
350M Anne Arundel County Water & Sewer 6.3% 8/1/2005* 362,117 112
1,000M Baltimore County Metropolitan District #68,
5% 8/1/2012* 1,116,250 346
700M Baltimore Maryland 5 1/2% 10/15/2015 815,500 253
1,000M Ocean City 5% 3/1/2021 1,056,250 327
1,000M Prince Georges County 5 1/4% 12/1/2014 1,111,250 344
155M Puerto Rico Commonwealth 5 1/4% 7/1/2027 164,106 51
1,050M Puerto Rico Municipal Finance Agy. 5 1/2% 8/1/2017 1,164,187 360
425M Queen Anne's County School & Public Facs.
5 1/4% 1/15/2014 463,781 144
1,000M St. Mary's County Hospital 5% 10/1/2020 1,081,250 335
325M Washington County Pub. Impt. 5.8% 1/1/2005* 331,500 103
350M Wicomico County 5 1/2% 12/1/2016 391,125 121
500M Worcester County 5 5/8% 3/1/2010* 572,500 177
- ----------------------------------------------------------------------------------------------------------------------
10,281,816 3,185
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care--8.6%
Maryland State Health & Higher Educ. Facs.:
$1,000M Anne Arundel 5% 7/1/2024 $1,058,750 $328
1,250M University of Maryland Med. Sys. 5% 7/1/2024 1,320,313 409
350M Takoma Park Hospital Facs. (Adventist Hosp.)
6 1/2% 9/1/2012 408,187 126
- ----------------------------------------------------------------------------------------------------------------------
2,787,250 863
- ----------------------------------------------------------------------------------------------------------------------
Housing--2.9%
380M Maryland State Cmnty. Dev. Admin. Dept. Hsg. &
Cmnty. Dev. 5 7/8% 7/1/2016 396,150 123
500M Montgomery County Multi-Family Mortgage Rev.
6% 7/1/2020 533,750 165
- ----------------------------------------------------------------------------------------------------------------------
929,900 288
- ----------------------------------------------------------------------------------------------------------------------
Transportation--13.0%
1,000M Maryland State Trans. Auth. Lease Rev. Metrorail
Parking Proj. 5% 7/1/2022 1,060,000 329
Puerto Rico Commwlth. Hwy. & Trans. Auth. Revenue:
1,425M Series "G" 5 1/4% 7/1/2019 1,576,406 488
1,275M Series "Z" 6 1/4% 7/1/2014 1,560,281 483
- ----------------------------------------------------------------------------------------------------------------------
4,196,687 1,300
- ----------------------------------------------------------------------------------------------------------------------
Utilities--17.5%
Baltimore Wastewater Utilities Revenue Series "A":
500M 5 1/2% 7/1/2010* 566,250 175
200M 6% 7/1/2015 238,500 74
1,090M 5% 7/1/2020 1,160,850 359
Baltimore Water Project Revenue Series "A":
220M 6% 7/1/2010* 254,650 79
250M 5.8% 7/1/2012* 292,188 90
Puerto Rico Electric Power Auth. Revenue:
1,390M 5 3/8% 7/1/2017 1,555,062 482
1,500M 5 1/4% 7/1/2029 1,588,125 492
- ----------------------------------------------------------------------------------------------------------------------
5,655,625 1,751
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--MARYLAND FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--12.2%
$1,020M Anne Arundel Cnty. Spl. Oblig. (Natl. Bus. Park Proj.)
5 1/8% 7/1/2022 $1,100,325 $341
250M Baltimore Convention Center 5 1/2% 9/1/2014 275,938 86
250M Maryland Stadium Auth. Rev. 5 7/8% 12/15/2013 255,938 79
1,000M Puerto Rico Municipal Fin. Agy. 5 1/4% 8/1/2021 1,105,000 342
1,025M Puerto Rico Public Fin. Corp. Commwlth. Approp.
Series "A" 5 3/8% 6/1/2015 1,185,156 367
- ----------------------------------------------------------------------------------------------------------------------
3,922,357 1,215
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $29,651,544) 98.9% 31,929,948 9,889
Other Assets, Less Liabilities 1.1 357,153 111
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $32,287,101 $10,000
======================================================================================================================
Unrealized
Expiration Notional Appreciation
Interest Rate Swaps Date Amount (Depreciation)
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 4.037% with Citibank, N.A. 7/30/2014 $3,200M $(121,060)
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 1,600M 10,805
- ----------------------------------------------------------------------------------------------------------------------
$4,800M $(110,255)
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--MASSACHUSETTS FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,044.39 $4.37
Hypothetical (5% return before expenses) $1,000.00 $1,020.87 $4.32
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,040.24 $8.21
Hypothetical (5% return before expenses) $1,000.00 $1,017.10 $8.11
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .85% for Class A
shares and 1.60% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half
year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
General Obligations 56.6%
Utilities 9.9%
Other Revenue 9.6%
Education 8.2%
Transportation 8.0%
Health Care 6.7%
Housing 1.0%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--MASSACHUSETTS FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Massachusetts Fund (Class A shares),
the Lehman Brothers Municipal Index and the Merrill Lynch Municipal
Securities Master Index.+
First Investors Multi-State Insured Tax Free Fund -- Massachusetts Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Brothers Lynch
Massachusetts Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 11,035 11,759 11,768
Dec-96 11,365 12,259 12,302
Dec-97 12,305 13,385 13,645
Dec-98 12,961 14,253 14,613
Dec-99 12,651 13,959 13,686
Dec-00 14,148 15,590 16,033
Dec-01 14,735 16,389 16,750
Dec-02 16,247 17,963 18,547
Dec-03 17,037 18,916 19,692
Dec-04 17,504 19,764 20,766
(INSET BOX IN CHART READS:)
First Investors Multi-State Insured Tax Free Fund--MASSACHUSETTS FUND
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 2.74% (3.19%)
Five Years 6.71% 5.46%
Ten Years 6.38% 5.76%
S.E.C. 30-Day Yield 2.51%
Class B Shares
One Year 2.01% (1.99%)
Five Years 5.90% 5.58%
Since Inception
(1/12/95) 5.69% 5.69%
S.E.C. 30-Day Yield 1.92%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Massachusetts Fund (Class A
shares) beginning 12/31/94 with theoretical investments in the Lehman
Brothers Municipal Index and the Merrill Lynch Municipal Securities
Master Index (the "Indices"). The Indices are total return performance
benchmarks for the investment grade tax exempt bond market. The
Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be
greater than or less than that shown in the line graph above for Class
A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (3.53%), 5.11% and 5.39%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.18%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (2.33%), 5.19% and 5.31%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.58%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MASSACHUSETTS FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--98.8%
Education--8.1%
$1,000M Massachusetts State College Bldg. Auth. Proj.
5 1/4% 5/1/2021 $1,095,000 $378
1,000M University of Massachusetts Bldg. Auth. Rev.
6 7/8% 5/1/2014 1,258,750 435
- ----------------------------------------------------------------------------------------------------------------------
2,353,750 813
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--56.0%
1,000M Holliston 5 1/4% 4/1/2018 1,108,750 383
1,000M Lawrence 5 1/4% 3/15/2018 1,108,750 383
Massachusetts State Construction Loan:
1,000M Series "D" 5% 11/1/2024 1,055,000 365
1,000M Series "E" 5 3/8% 1/1/2013* 1,130,000 390
1,080M North Hampton 5.2% 6/15/2015 1,182,600 409
1,155M Quaboag Regional School District 5 1/2% 6/1/2017 1,290,712 446
Springfield:
1,000M 6% 10/1/2015 1,147,500 396
1,000M 5 3/8% 8/1/2017 1,106,250 382
1,000M 5 1/4% 1/15/2023 1,082,500 374
1,000M Tantasqua Regional School District 5% 8/15/2017 1,080,000 373
1,000M Westborough 5% 11/15/2019 1,075,000 371
1,370M Westfield 5 1/2% 12/15/2011* 1,584,063 547
1,040M Westford 5 1/8% 4/1/2017 1,137,500 393
1,000M Worcester 5 1/2% 8/15/2017 1,117,500 386
- ----------------------------------------------------------------------------------------------------------------------
16,206,125 5,598
- ----------------------------------------------------------------------------------------------------------------------
Health Care--6.6%
1,000M Harvard Pilgrim Health Care 5 1/4% 7/1/2013 1,072,500 370
750M Massachusetts General Hospital Series "F"
6 1/4% 7/1/2012 851,250 294
- ----------------------------------------------------------------------------------------------------------------------
1,923,750 664
- ----------------------------------------------------------------------------------------------------------------------
Housing--1.0%
275M Massachusetts Housing Finance Agy. 6% 12/1/2012 285,656 99
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--MASSACHUSETTS FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Transportation--7.9%
$1,000M Massachusetts State Port Auth. Rev. Series "A"
5 3/4% 7/1/2012 $1,147,500 $397
1,000M Route 3 North Trans. Impt. Assoc. 5 5/8% 6/15/2010* 1,137,500 393
- ----------------------------------------------------------------------------------------------------------------------
2,285,000 790
- ----------------------------------------------------------------------------------------------------------------------
Utilities--9.8%
1,035M Boston Water & Sewer Commission Rev.
5 3/4% 11/1/2013 1,207,069 417
1,455M Holyoke Gas & Electric Dept. Rev. 5 3/8% 12/1/2018 1,616,869 558
- ----------------------------------------------------------------------------------------------------------------------
2,823,938 975
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--9.4%
1,000M Boston Convention Center Act 1997 Series "A"
5% 5/1/2017 1,077,500 372
500M Massachusetts Dev. Fin. Agy. Res. Recovery Rev.
(Semass Sys.) Series "A" 5 5/8% 1/1/2013 564,375 195
1,000M Massachusetts State Spl. Oblig. Ded. Tax. Rev.
5 1/4% 1/1/2022 1,092,500 377
- ----------------------------------------------------------------------------------------------------------------------
2,734,375 944
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $26,233,091) 98.8% 28,612,594 9,883
Other Assets, Less Liabilities 1.2 339,209 117
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $28,951,803 $10,000
======================================================================================================================
Expiration Notional Unrealized
Interest Rate Swap Date Amount Appreciation
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 $1,100M $7,428
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--MICHIGAN FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,041.62 $4.62
Hypothetical (5% return before expenses) $1,000.00 $1,020.62 $4.57
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,037.77 $8.45
Hypothetical (5% return before expenses) $1,000.00 $1,016.84 $8.36
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .90% for Class A
shares and 1.65% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half year
period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
General Obligations 68.4%
Utilities 20.0%
Health Care 11.6%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--MICHIGAN FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Michigan Fund (Class A shares), the
Lehman Brothers Municipal Index and the Merrill Lynch Municipal Securities
Master Index.+
First Investors Multi-State Insured Tax Free Fund -- Michigan Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Brothers Lynch
Michigan Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 11,071 11,759 11,768
Dec-96 11,445 12,259 12,302
Dec-97 12,517 13,385 13,645
Dec-98 13,217 14,253 14,613
Dec-99 12,870 13,959 13,686
Dec-00 14,279 15,590 16,033
Dec-01 14,834 16,389 16,750
Dec-02 16,308 17,963 18,547
Dec-03 17,068 18,916 19,692
Dec-04 17,451 19,764 20,766
(INSET BOX IN CHART READS:)
First Investors Multi-State Insured Tax Free Fund--MICHIGAN FUND
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 2.25% (3.60%)
Five Years 6.28% 5.03%
Ten Years 6.35% 5.72%
S.E.C. 30-Day Yield 2.44%
Class B Shares
One Year 1.48% (2.52%)
Five Years 5.46% 5.14%
Since Inception
(1/12/95) 5.63% 5.63%
S.E.C. 30-Day Yield 1.84%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Michigan Fund (Class A shares)
beginning 12/31/94 with theoretical investments in the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master
Index (the "Indices"). The Indices are total return performance
benchmarks for the investment grade tax exempt bond market. The
Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be
greater than or less than that shown in the line graph above for Class
A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (3.88%), 4.78% and 5.45%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.15%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (2.80%), 4.86% and 5.36%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.59%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MICHIGAN FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--99.4%
General Obligations--68.0%
$1,800M Detroit Downtown Development Series "A"
5 3/4% 7/15/2015 $1,953,000 $512
1,825M Eaton Rapids Public Schools 5 1/4% 5/1/2022 2,000,656 524
1,000M Godwin Heights Public School District 5 5/8% 5/1/2015 1,115,000 292
1,000M Grand Blanc Community School District
5 5/8% 5/1/2015 1,136,250 298
1,040M Grand Rapids Building Authority 5 3/4% 8/1/2015 1,173,900 308
1,000M Gull Lake Community School District
Zero Coupon 5/1/2013 721,250 189
1,000M Hartland School District 5% 5/1/2022 1,062,500 278
1,575M Jenison Public School District 5 1/2% 5/1/2018 1,750,219 458
400M Lincoln Park School District 7% 5/1/2006* 429,500 112
1,000M Michigan State Environmental Protection Prog.
6 1/4% 11/1/2012 1,166,250 306
1,000M Montrose Township School District 6.2% 5/1/2017 1,221,250 320
1,200M Newaygo Public Schools 5 3/4% 5/1/2018 1,347,000 353
2,020M Ovid Elsie Area Schs. Bldg. & Site 5% 5/1/2022 2,128,575 558
1,000M Plainwell Community School District 5 1/2% 5/1/2019 1,123,750 294
1,000M Portage Lake Water & Sewer Authority
6.1% 10/1/2014 1,048,750 275
1,500M Puerto Rico Municipal Finance Agency 5 3/4% 8/1/2013 1,700,625 446
1,525M Reed City Public Schools 5 1/4% 5/1/2021 1,673,688 438
1,475M Saginaw City School District Schs. Bldg. & Site
5% 5/1/2025 1,541,375 404
1,485M West Ottawa Public School District 5 3/8% 5/1/2019 1,665,056 436
- ----------------------------------------------------------------------------------------------------------------------
25,958,594 6,801
- ----------------------------------------------------------------------------------------------------------------------
Health Care--11.5%
Michigan State Hospital Finance Authority Revenue:
1,000M Ascension Health Credit 5 3/4% 11/15/2009* 1,145,000 300
1,000M Mercy Mount Clemens 5 3/4% 5/15/2017 1,111,250 291
1,000M St. John's Hospital 6% 5/15/2008 1,016,300 266
1,000M Saginaw Hospital Fin. Auth. (Covenant Med. Ctr.)
5 5/8% 7/1/2013 1,111,250 291
- ----------------------------------------------------------------------------------------------------------------------
4,383,800 1,148
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--MICHIGAN FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Utilities--19.9%
Detroit Water Supply System Revenue:
$1,750M 5 1/2% 7/1/2014 $1,931,562 $506
1,275M 6 1/2% 7/1/2015 1,571,437 412
Michigan State Strategic Fund (Detroit Edison Co.):
1,750M 6.95% 5/1/2011 2,115,313 554
1,000M 7% 5/1/2021 1,323,750 347
500M Monroe County Economic Dev. Corp. (Detroit
Edison Co.) 6.95% 9/1/2022 666,875 175
- ----------------------------------------------------------------------------------------------------------------------
7,608,937 1,994
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $34,475,819) 99.4% 37,951,331 9,943
Other Assets, Less Liabilities .6 219,217 57
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $38,170,548 $10,000
======================================================================================================================
Expiration Notional Unrealized
Interest Rate Swap Date Amount Appreciation
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 $2,000M $13,507
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--MINNESOTA FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,043.46 $3.08
Hypothetical (5% return before expenses) $1,000.00 $1,022.12 $3.05
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,040.14 $6.92
Hypothetical (5% return before expenses) $1,000.00 $1,018.35 $6.85
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .60% for Class A
shares and 1.35% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half
year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
General Obligations 61.1%
Health Care 11.5%
Utilities 10.4%
Transportation 5.7%
Housing 5.5%
Education 3.1%
Certificates of Participation 2.7%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--MINNESOTA FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Minnesota Fund (Class A shares), the
Lehman Brothers Municipal Index and the Merrill Lynch Municipal Securities
Master Index.+
First Investors Multi-State Insured Tax Free Fund -- Minnesota Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Brothers Lynch
Minnesota Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 10,902 11,759 11,768
Dec-96 11,280 12,259 12,302
Dec-97 12,246 13,385 13,645
Dec-98 13,010 14,253 14,613
Dec-99 12,795 13,959 13,686
Dec-00 14,213 15,590 16,033
Dec-01 14,847 16,389 16,750
Dec-02 16,269 17,963 18,547
Dec-03 17,068 18,916 19,692
Dec-04 17,652 19,764 20,766
(INSET BOX IN CHART READS:)
First Investors Multi-State Insured Tax Free Fund--MINNESOTA FUND
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 3.42% (2.51%)
Five Years 6.65% 5.39%
Ten Years 6.48% 5.85%
S.E.C. 30-Day Yield 2.71%
Class B Shares
One Year 2.68% (1.32%)
Five Years 5.86% 5.54%
Since Inception
(1/12/95) 5.79% 5.79%
S.E.C. 30-Day Yield 2.13%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Minnesota Fund (Class A shares)
beginning 12/31/94 with theoretical investments in the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master
Index (the "Indices"). The Indices are total return performance
benchmarks for the investment grade tax exempt bond market. The
Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be
greater than or less than that shown in the line graph above for Class
A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (3.14%), 4.77% and 5.09%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.12%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (1.96%), 4.84% and 5.03%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.47%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MINNESOTA FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--98.1%
Certificates of Participation--2.7%
$400M Minneapolis Special School District #001,
5.9% 2/1/2006* $416,068 $270
- ----------------------------------------------------------------------------------------------------------------------
Education--3.1%
400M University of Minnesota 5 3/4% 7/1/2017 475,000 308
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--59.9%
400M Becker Ind. School District #726, 6% 2/1/2017 456,000 296
325M Bloomington Ind. School District #271, 5 1/8% 2/1/2015 357,094 232
500M Crow Wing County Jail Series "B" 5% 2/1/2021 536,250 348
200M Delano Ind. School District #879, 5.6% 2/1/2015 223,750 145
Eagan Recreational Facilities Series "A":
480M 5% 2/1/2015 522,000 339
250M 5% 2/1/2016 271,250 176
400M Elk River Ind. School District #728, 5 1/2% 2/1/2021 443,500 288
285M Inver Grove Heights Ind. School District #199,
5 3/4% 2/1/2006* 295,442 192
Lake Superior Ind. School District #381 Series "A":
465M 5% 4/1/2018 503,363 327
500M 5% 4/1/2019 539,375 350
280M Lakeville 5 1/2% 2/1/2011 289,461 188
405M Lino Lakes 5.7% 2/1/2012 430,819 279
260M Mahtomedi Ind. School District #832, 5% 2/1/2017 280,800 182
1,260M Minneapolis Special School District #1, 5% 2/1/2020 1,352,925 878
400M Moorehead Ind. School District #152, 5% 4/1/2017 432,500 281
200M North St. Paul Maplewood Ind. School District #622,
7.1% 2/1/2005* 200,758 130
Pequot Lakes Ind. School District #186:
250M 5% 2/1/2016 271,250 176
250M 5 1/8% 2/1/2018 270,937 176
St. Paul Ind. School District #625:
250M 5 5/8% 2/1/2015 275,625 179
400M 5% 2/1/2017 434,000 281
535M Upsala Ind. School District #487, 5% 2/1/2020 574,456 373
255M Wabasha Water & Sewer Series "A" 5% 12/1/2022 271,894 176
- ----------------------------------------------------------------------------------------------------------------------
9,233,449 5,992
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--MINNESOTA FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care--11.2%
$200M Hibbing Health Care Facilities Rev. (Duluth Clinic)
5 1/2% 11/1/2013* $227,250 $148
500M Minneapolis Health Care Sys. Rev. (Fairview
Hlth. Svcs.) 5 1/2% 5/15/2017 560,000 363
350M Minnesota Agriculture & Econ. Dev. Brd. Rev.
(Benedictine Hlth.) 5 1/4% 2/15/2014 380,188 247
500M St. Cloud Healthcare Oblig. Group "A" 5.8% 5/1/2016 564,375 366
- ----------------------------------------------------------------------------------------------------------------------
1,731,813 1,124
- ----------------------------------------------------------------------------------------------------------------------
Housing--5.4%
395M Minnesota State Housing Finance Authority Rental
Housing Rev. 5.9% 8/1/2015 403,307 262
400M Minnetonka Multi-Family Housing Rev. (Cedar
Hills Proj.) 5.9% 10/20/2019 426,500 277
- ----------------------------------------------------------------------------------------------------------------------
829,807 539
- ----------------------------------------------------------------------------------------------------------------------
Transportation--5.6%
800M Minneapolis & St. Paul Metro Airports Comm. Airport
Rev. Series "A" 5% 1/1/2018 862,000 559
- ----------------------------------------------------------------------------------------------------------------------
Utilities--10.2%
400M Northern Minnesota Municipal Pwr. Agy. Elec. Sys.
Rev. 5.4% 1/1/2016 439,000 285
210M Southern Minnesota Municipal Pwr. Agy. Pwr. Supply
Sys. 5 3/4% 1/1/2018 236,250 153
Western Minnesota Municipal Power Agency:
325M 5 1/2% 1/1/2011 341,201 222
500M 5 1/2% 1/1/2015 557,500 362
- ----------------------------------------------------------------------------------------------------------------------
1,573,951 1,022
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $14,081,268) 98.1% 15,122,088 9,814
Other Assets, Less Liabilities 1.9 286,989 186
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $15,409,077 $10,000
======================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--MISSOURI FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,047.78 $3.09
Hypothetical (5% return before expenses) $1,000.00 $1,022.12 $3.05
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,045.47 $6.94
Hypothetical (5% return before expenses) $1,000.00 $1,018.35 $6.85
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .60% for Class A
shares and 1.35% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half
year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
General Obligations 31.7%
Other Revenue 26.7%
Transportation 15.8%
Healthcare 11.0%
Utilities 9.5%
Education 4.4%
Short-Term Tax-Exempt Investments 0.9%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--MISSOURI FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Missouri Fund (Class A shares), the
Lehman Brothers Municipal Index and the Merrill Lynch Municipal Securities
Master Index.+
First Investors Multi-State Insured Tax Free Fund -- Missouri Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Brothers Lynch
Missouri Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 11,171 11,759 11,768
Dec-96 11,600 12,259 12,302
Dec-97 12,695 13,385 13,645
Dec-98 13,532 14,253 14,613
Dec-99 13,259 13,959 13,686
Dec-00 14,877 15,590 16,033
Dec-01 15,497 16,389 16,750
Dec-02 17,227 17,963 18,547
Dec-03 18,162 18,916 19,692
Dec-04 18,839 19,764 20,766
(INSET BOX IN CHART READS:)
First Investors Multi-State Insured Tax Free Fund--MISSOURI FUND
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 3.73% (2.21%)
Five Years 7.28% 6.01%
Ten Years 7.17% 6.54%
S.E.C. 30-Day Yield 3.00%
Class B Shares
One Year 2.99% (1.01%)
Five Years 6.47% 6.16%
Since Inception
(1/12/95) 6.43% 6.43%
S.E.C. 30-Day Yield 2.44%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Missouri Fund (Class A shares)
beginning 12/31/94 with theoretical investments in the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master
Index (the "Indices"). The Indices are total return performance
benchmarks for the investment grade tax exempt bond market. The
Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be
greater than or less than that shown in the line graph above for Class
A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (2.88%), 5.32% and 5.51%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.35%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (1.69%), 5.37% and 5.41%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.77%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MISSOURI FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--97.4%
Education--4.3%
$125M Bowling Green School District 5.85% 3/1/2020 $140,938 $127
150M Missouri Southern State College Rev. Aux. Ent. Sys.
5.3% 4/1/2015 165,562 149
150M Missouri State Hlth. & Educ. Facs. Auth.
(Webster Univ.) 5 1/2% 4/1/2018 167,063 150
- ----------------------------------------------------------------------------------------------------------------------
473,563 426
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--31.2%
100M Belton School District #124, 6% 3/1/2018 113,875 103
400M Cass County Reorg. School District #2, 5 1/2% 3/1/2017 448,500 404
350M Clay County Pub. School District #53, 5% 3/1/2017 375,812 338
Greene County Reorg. School District #8:
200M 5 1/4% 3/1/2018 218,250 196
250M 5 1/4% 3/1/2019 273,750 246
300M Jackson County Reorg. School District #7, 5 1/4% 3/1/2020 328,500 296
100M Jefferson County School District #6, 6% 3/1/2014 113,000 102
150M Kansas City Streetlight Project Series "A" 5 1/4% 2/1/2016 163,875 147
400M Maplewood Richmond Heights School District
5 1/4% 3/1/2016 437,000 393
125M St. Joseph's School Dist. (Direct Dep. Prog.)
5 3/4% 3/1/2019 141,094 127
150M St. Louis Board of Education 5 3/8% 4/1/2011* 169,500 153
125M St. Louis County Pattonville R-3 School Dist.
(Direct Dep. Prog.) 5 3/4% 3/1/2010* 143,438 129
250M Washington School District 5% 3/1/2015 272,187 245
250M Wentzville School District #4, 5% 3/1/2022 265,000 238
- ----------------------------------------------------------------------------------------------------------------------
3,463,781 3,117
- ----------------------------------------------------------------------------------------------------------------------
Health Care--10.8%
400M Jackson County Spl. Oblig. (Truman Med. Ctr.)
5% 12/1/2022 423,500 381
140M Missouri State Hlth. & Educ. Facs. Auth. Series "A"
(BJC Hlth. Sys.) 6 3/4% 5/15/2011 168,700 152
500M North Kansas City Hospital Rev. Series "A"
5% 11/15/2020 530,625 477
80M Puerto Rico Indl. Tourist Educ. Med. & Env.
Cntl. Facs. 6 1/4% 7/1/2016 82,000 74
- ----------------------------------------------------------------------------------------------------------------------
1,204,825 1,084
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--MISSOURI FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Transportation--15.5%
$400M Bi-State Dev. Agy. Met. Dist. Metrolink Cross Cnty.
Proj. Series "B" 5 1/4% 10/1/2019 $442,000 $398
250M Kansas City Airport Rev. Series "B" 5 1/4% 9/1/2016 276,250 248
500M Puerto Rico Commwlth. Hwy. & Trans. Auth.
Inverse Floater 7.93%, 7/1/2022** 574,375 517
St. Louis Airport Revenue:
150M 5 1/8% 7/1/2015 160,688 144
255M 5.3% 7/1/2021 274,762 247
- ----------------------------------------------------------------------------------------------------------------------
1,728,075 1,554
- ----------------------------------------------------------------------------------------------------------------------
Utilities--9.3%
250M Jefferson County Cons. Public Water Supply
5 1/4% 12/1/2016 278,750 251
80M Liberty Sewer System Rev. 6.15% 2/1/2015 90,400 81
Missouri State Environmental Impt. & Energy Res. Auth.
Water Pollution Control:
250M 5 1/2% 7/1/2014 284,375 256
90M 5.4% 7/1/2018 99,113 89
250M Puerto Rico Electric Power Auth. Rev. 5 3/8% 7/1/2017 279,687 252
- ----------------------------------------------------------------------------------------------------------------------
1,032,325 929
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--26.3%
100M Clay County Public Building Auth. Leasehold Rev.
5 1/8% 5/15/2014 106,875 96
250M Kansas City Municipal Assistance Corp. Rev.
Series "A" 5% 3/1/2019 266,250 240
250M Missouri State Board Public Buildings Series "A"
5% 5/1/2021 263,438 237
Missouri State Dev. Finance Board Infrastructure
Facilities Revenue:
500M Hartman Heritage Center Phase II 5% 4/1/2020 530,000 477
125M Midtown Redevelopment Project Series "A"
6% 4/1/2014 142,187 128
500M Missouri State Regional Convention & Sports
Complex Auth. 5 1/4% 8/15/2020 550,000 495
Springfield Public Building Corp. Leasehold Revenue:
125M Capital Improvement 5.6% 6/1/2014 139,688 126
230M Jordan Valley 5.85% 6/1/2014 264,212 238
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue (continued)
St. Louis Municipal Finance Corp. Leasehold Revenue:
$250M Carnahan Courthouse Series "A" 5% 2/15/2020 $265,938 $239
City Justice Center Series "A":
225M 5 1/4% 2/15/2015 249,750 225
125M 5 3/4% 2/15/2018 140,781 127
- ----------------------------------------------------------------------------------------------------------------------
2,919,119 2,628
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $10,090,592) 10,821,688 9,738
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--.9%
100M Puerto Rico Commonwealth Govt. Dev. Bank
Adjustable Rate Note 1.92%*** (cost $100,000) 100,000 90
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $10,190,592) 98.3% 10,921,688 9,828
Other Assets, Less Liabilities 1.7 191,147 172
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $11,112,835 $10,000
======================================================================================================================
Unrealized
Expiration Notional Appreciation
Interest Rate Swaps Date Amount (Depreciation)
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 4.037% with Citibank, N.A. 7/30/2014 $500M $(18,916)
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 600M 4,052
- ----------------------------------------------------------------------------------------------------------------------
$1,100M $(14,864)
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Inverse floating rate security (see Note 1F). The interest rates are reset weekly by the issuer. The
interest rate shown is the rate in effect at December 31, 2004.
*** Interest rates on Adjustable Rate Notes are determined and reset periodically by the issuer. The
interest rate shown is reset weekly and is the rate in effect at December 31, 2004.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--NEW JERSEY FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,041.30 $4.87
Hypothetical (5% return before expenses) $1,000.00 $1,020.36 $4.82
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,037.92 $8.71
Hypothetical (5% return before expenses) $1,000.00 $1,016.59 $8.62
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .95% for Class A
shares and 1.70% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half
year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
Education 23.2%
Other Revenue 21.8%
Transportation 17.8%
General Obligations 12.3%
Healthcare 11.7%
Utilities 10.5%
Housing 2.2%
Short-Term Tax-Exempt Investments 0.5%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--NEW JERSEY FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- New Jersey Fund (Class A shares), the
Lehman Brothers Municipal Index and the Merrill Lynch Municipal Securities
Master Index.+
First Investors Multi-State Insured Tax Free Fund -- New Jersey Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Brothers Lynch
New Jersey Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 10,976 11,759 11,768
Dec-96 11,316 12,259 12,302
Dec-97 12,262 13,385 13,645
Dec-98 12,977 14,253 14,613
Dec-99 12,711 13,959 13,686
Dec-00 14,035 15,590 16,033
Dec-01 14,605 16,389 16,750
Dec-02 16,024 17,963 18,547
Dec-03 16,711 18,916 19,692
Dec-04 17,143 19,764 20,766
(INSET BOX IN CHART READS:)
First Investors Multi-State Insured Tax Free Fund--NEW JERSEY FUND
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 2.59% (3.30%)
Five Years 6.16% 4.91%
Ten Years 6.17% 5.54%
S.E.C. 30-Day Yield 2.61%
Class B Shares
One Year 1.75% (2.25%)
Five Years 5.36% 5.03%
Since Inception
(1/12/95) 5.43% 5.43%
S.E.C. 30-Day Yield 2.03%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- New Jersey Fund (Class A shares)
beginning 12/31/94 with theoretical investments in the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master
Index (the "Indices"). The Indices are total return performance
benchmarks for the investment grade tax exempt bond market. The
Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be
greater than or less than that shown in the line graph above for Class
A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (3.50%), 4.74% and 5.36%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.42%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (2.45%), 4.83% and 5.25%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.82%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--NEW JERSEY FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--96.7%
Education--22.5%
New Jersey Educational Facilities Auth. Revenue:
$2,125M College of New Jersey Series "C" 5 3/8% 7/1/2016 $2,356,094 $338
5,000M Higher Educ. Cap. Impt. Series "A" 5 1/8% 9/1/2022 5,350,000 767
1,800M Rowan University Series "C" 5% 7/1/2022 1,908,000 274
1,210M Puerto Rico Indl. Tourist Educ. University Plaza
Series "A" 5 5/8% 7/1/2013 1,362,762 195
1,000M University of Medicine & Dentistry of New Jersey
Series "A" 5 3/8% 12/1/2016 1,111,250 159
University of Puerto Rico:
1,715M 5 3/4% 6/1/2017 1,942,237 278
1,500M 5 3/4% 6/1/2018 1,696,875 243
- ----------------------------------------------------------------------------------------------------------------------
15,727,218 2,254
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--12.0%
1,750M Atlantic City Board of Education 6.1% 12/1/2015 2,135,000 306
Essex County Improvement Authority
Orange School District:
1,025M Series "A" 6.95% 7/1/2005* 1,070,225 153
1,120M Series "B" 6.95% 7/1/2005* 1,169,414 168
1,500M Jersey City Series "B" 5% 9/1/2019 1,612,500 231
995M Union City 6.4% 11/1/2013 1,217,631 175
1,000M West Deptford 5 1/2% 9/1/2010* 1,133,750 163
- ----------------------------------------------------------------------------------------------------------------------
8,338,520 1,196
- ----------------------------------------------------------------------------------------------------------------------
Health Care--11.4%
New Jersey State Health Care Facilities
Financing Authority:
1,045M Bayonne Hospital 6 1/4% 7/1/2012 1,068,617 153
1,745M General Hospital Center at Passaic 6% 7/1/2014 2,067,825 297
1,000M Meridian Health System Oblig. Group
5 5/8% 7/1/2014 1,105,000 158
3,120M Riverview Medical Center 6 1/4% 7/1/2011 3,701,100 531
- ----------------------------------------------------------------------------------------------------------------------
7,942,542 1,139
- ----------------------------------------------------------------------------------------------------------------------
Housing--2.1%
1,375M New Jersey State Hsg. & Mtge. Fing. Agency Regency
Park Project 6.05% 11/1/2017 1,479,844 212
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Transportation--17.3%
$1,000M Burlington County Bridge Commission
5 1/4% 8/15/2021 $1,085,000 $156
Delaware River & Bay Authority:
1,000M 5 1/2% 1/1/2016 1,107,500 159
1,000M 5 1/4% 1/1/2022 1,083,750 155
1,000M Delaware River Port Auth. PA & NJ Rev.
5 3/4% 1/1/2022 1,118,750 160
1,000M New Jersey Econ. Dev. Auth. Rev. Light Rail Sys.
6% 5/1/2009* 1,141,250 164
1,000M New Jersey State Hwy. Auth. (Garden State Parkway)
6.2% 1/1/2010 1,125,000 161
1,000M Newark Hsg. Auth. Port Auth. (Newark Marine Term.)
5 1/4% 1/1/2020 1,092,500 157
2,100M Port Authority of New York & New Jersey
125th Series 5% 10/15/2018 2,249,625 323
Puerto Rico Commwlth. Hwy. & Trans. Auth.
Inverse Floater:**
1,000M 7.93% 7/1/2019 1,181,250 169
750M 7.93% 7/1/2022 861,563 124
- ----------------------------------------------------------------------------------------------------------------------
12,046,188 1,728
- ----------------------------------------------------------------------------------------------------------------------
Utilities--10.2%
1,250M Evesham Municipal Utilities Auth. Rev. 5% 7/1/2018 1,339,062 192
Passaic Valley Sewer Commission:
1,250M Series "E" 5 5/8% 12/1/2018 1,406,250 201
1,000M Series "F" 5% 12/1/2020 1,066,250 153
Puerto Rico Electric Power Authority:
1,000M Series "HH" 5 1/4% 7/1/2029 1,058,750 152
2,000M Series "II" 5 3/8% 7/1/2017 2,237,500 321
- ----------------------------------------------------------------------------------------------------------------------
7,107,812 1,019
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--21.2%
2,900M Atlantic County Impt. Auth. Lux. Tax
(Convention Ctr.) 7.4% 7/1/2016 3,722,875 534
Camden County Impt. Auth. Lease Revenue:
1,000M 5 1/8% 9/1/2019 1,080,000 155
1,330M 5% 9/1/2020 1,419,775 203
1,395M 5% 9/1/2021 1,480,444 212
1,665M Cape May County Indl. Poll. Cntl. Fin. Auth.
6.8% 3/1/2021 2,189,475 314
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--NEW JERSEY FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue (continued)
$1,150M Casino Reinvestment Dev. Auth. Hotel Room
Fee Rev. 5% 1/1/2025 $1,217,562 $175
1,000M Essex County Impt. Auth. Lease Rev.
(Correctional Facs. Proj.) 5 1/2% 10/1/2018 1,110,000 159
1,250M New Jersey Economic Dev. Auth. Educ.
Testing Service 6 1/8% 5/15/2005* 1,293,562 185
1,155M Puerto Rico Municipal Finance Agency 5 1/4% 8/1/2020 1,274,831 183
- ----------------------------------------------------------------------------------------------------------------------
14,788,524 2,120
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $62,063,251) 67,430,648 9,668
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--.5%
350M Gloucester County Indl. Poll. Cntl. Fing. Auth.
Adjustable Rate Note 2%*** (cost $350,000) 350,000 50
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments ($62,413,251) 97.2% 67,780,648 9,718
Other Assets, Less Liabilities 2.8 1,968,535 282
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $69,749,183 $10,000
======================================================================================================================
Unrealized
Expiration Notional Appreciation
Interest Rate Swaps Date Amount (Depreciation)
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 4.037% with Citibank, N.A. 7/30/2014 $3,500M $(132,409)
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 3,400M 22,961
- ----------------------------------------------------------------------------------------------------------------------
$6,900M $(109,448)
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Inverse floating rate security (see Note 1F). The interest rates are reset weekly by the issuer.
The interest rates shown are the rates in effect at December 31, 2004.
*** Interest rates on Adjustable Rate Notes are determined and reset periodically by the issuer.
The interest rate shown is reset daily and is the rate in effect at December 31, 2004.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--NORTH CAROLINA FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,045.26 $3.86
Hypothetical (5% return before expenses) $1,000.00 $1,021.37 $3.81
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,041.54 $7.70
Hypothetical (5% return before expenses) $1,000.00 $1,017.60 $7.61
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .75% for Class A
shares and 1.50% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half year
period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
Utilities 41.9%
Certificates of Participation 18.6%
Education 16.0%
Transportation 9.9%
General Obligations 8.1%
Other Revenue 2.7%
Health Care 2.4%
Housing 0.4%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--NORTH CAROLINA FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- North Carolina Fund (Class A shares),
the Lehman Brothers Municipal Index and the Merrill Lynch Municipal
Securities Master Index.+
First Investors Multi-State Insured Tax Free Fund -- North Carolina Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
North Brothers Lynch
Carolina Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 11,194 11,759 11,768
Dec-96 11,605 12,259 12,302
Dec-97 12,714 13,385 13,645
Dec-98 13,569 14,253 14,613
Dec-99 13,250 13,959 13,686
Dec-00 14,900 15,590 16,033
Dec-01 15,486 16,389 16,750
Dec-02 17,125 17,963 18,547
Dec-03 18,000 18,916 19,692
Dec-04 18,573 19,764 20,766
(INSET BOX IN CHART READS:)
First Investors Multi-State Insured Tax Free Fund--NORTH CAROLINA FUND
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 3.18% (2.74%)
Five Years 6.99% 5.73%
Ten Years 7.01% 6.39%
S.E.C. 30-Day Yield 2.64%
Class B Shares
One Year 2.45% (1.55%)
Five Years 6.20% 5.88%
Since Inception
(1/12/95) 6.28% 6.28%
S.E.C. 30-Day Yield 2.06%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- North Carolina Fund (Class A
shares) beginning 12/31/94 with theoretical investments in the Lehman
Brothers Municipal Index and the Merrill Lynch Municipal Securities
Master Index (the "Indices"). The Indices are total return performance
benchmarks for the investment grade tax exempt bond market. The
Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be
greater than or less than that shown in the line graph above for Class
A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (3.18%), 5.24% and 5.62%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.23%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (1.99%), 5.32% and 5.51%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.58%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the
Fund. After this year, we will not show a comparison to the Lehman
Brothers Municipal Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--NORTH CAROLINA FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--98.5%
Certificates of Participation--18.3%
$400M Carteret County 5 5/8% 6/1/2020 $446,000 $173
Harnett County:
500M 5 1/2% 12/1/2014 563,750 218
500M 5 1/8% 12/1/2023 540,000 209
1,255M Nash County Public Facs. Proj. 5 1/4% 6/1/2019 1,389,912 539
1,110M North Carolina Wildlife Resources Series "A"
5 1/4% 6/1/2019 1,225,162 475
250M Pitt County 5 1/4% 4/1/2015 274,375 106
250M Randolph County 5 1/2% 6/1/2009* 282,500 110
- ----------------------------------------------------------------------------------------------------------------------
4,721,699 1,830
- ----------------------------------------------------------------------------------------------------------------------
Education--15.7%
Appalachian State University:
500M Housing & Student Ctr. 5.6% 7/15/2020 556,250 215
1,000M Series "A" 5 1/8% 5/1/2019 1,088,750 422
430M Iredell County Public Facs. School Projs.
6% 6/1/2010* 500,412 194
500M North Carolina Capital Facs. Fin. Agy.
(Meredith College) 5 1/8% 6/1/2014 545,000 211
250M North Carolina Central Univ. Housing Rev.
5.6% 11/1/2006* 268,750 104
1,000M University North Carolina Sys. Pool Rev.
5 3/8% 4/1/2021 1,106,250 428
- ----------------------------------------------------------------------------------------------------------------------
4,065,412 1,574
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--8.0%
250M Bladen County 5.6% 5/1/2010* 287,188 111
500M Brunswick County 5 3/4% 5/1/2017 570,000 221
250M Cleveland County 5 1/2% 3/1/2012 263,750 102
400M Johnston County 5% 6/1/2018 430,000 167
220M Laurinburg Sanitation Swr. 5.3% 6/1/2012 227,258 88
250M Union County 5.4% 3/1/2015* 276,250 107
- ----------------------------------------------------------------------------------------------------------------------
2,054,446 796
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--NORTH CAROLINA FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care--2.4%
$400M North Carolina Medical Care Community Hosp. Rev.
(Northeast Med. Ctr.) 5 3/8% 11/1/2016 $442,000 $171
175M Puerto Rico Indl. Tourist Educ. Med. & Env.
Cntl. Facs. 6 1/4% 7/1/2016 179,375 70
- ----------------------------------------------------------------------------------------------------------------------
621,375 241
- ----------------------------------------------------------------------------------------------------------------------
Housing--.4%
100M North Carolina Hsg. Fin. Agy. Multi-Family Series "F"
6.6% 7/1/2017 101,962 40
- ----------------------------------------------------------------------------------------------------------------------
Transportation--9.7%
1,000M Charlotte Airport Rev. Series "A" 5 1/4% 7/1/2023 1,076,250 417
Piedmont Triad Airport Authority Revenue:
800M 5 1/2% 7/1/2013 878,000 340
500M 5 1/4% 7/1/2016 548,750 213
- ----------------------------------------------------------------------------------------------------------------------
2,503,000 970
- ----------------------------------------------------------------------------------------------------------------------
Utilities--41.3%
600M Broad River Water Auth. Water Sys. Rev.
5 3/4% 6/1/2017 680,250 264
1,080M Brunswick County Enterprise Sys. Rev.
5 1/4% 4/1/2022 1,188,000 460
250M Buncombe County Solid Waste Sys. Rev.
5.6% 3/1/2011 264,062 102
250M Charlotte Storm Water Fee Rev. 5.65% 6/1/2010* 286,563 111
300M Fayetteville Public Works Comm. Rev.
5 1/2% 3/1/2010* 341,625 132
250M Gastonia Combined Utilities Sys. Rev.
5 5/8% 5/1/2015 280,625 109
250M Greensboro Enterprise Sys. Rev. 5% 6/1/2017 267,813 104
Greenville Combined Enterprise Sys. Revenue:
250M 5 1/2% 9/1/2017 275,938 107
250M 5 1/2% 9/1/2018 275,938 107
1,900M High Point Enterprise Sys. Rev. 5% 11/1/2024 2,014,000 780
250M Kinston Enterprise Sys. Rev. 5.7% 4/1/2012 264,688 103
200M North Carolina Eastern Municipal Pwr. Agy. Rev.
5.6% 1/1/2010 215,250 83
1,000M North Carolina Municipal Pwr. Agy. Rev.
(Catawba Elec.) 5 1/4% 1/1/2018 1,088,750 422
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities (continued)
$650M Puerto Rico Electric Pwr. Auth. Rev. 5 1/4% 7/1/2022 $706,062 $274
1,140M Shelby Enterprise Sys. Rev. 5% 5/1/2022 1,206,975 468
1,210M Union County Enterprise Sys. Rev. 5% 6/1/2019 1,300,750 504
- ----------------------------------------------------------------------------------------------------------------------
10,657,289 4,130
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--2.7%
250M Cumberland County Finance Corp. Installment Pmt.
Rev. (Detention Ctr. & Mental Hlth.) 5 5/8% 6/1/2017 276,562 107
390M Fayetteville Finance Corp. Inst. Municipal Bldg. Prog.
5.7% 2/1/2010 411,181 160
- ----------------------------------------------------------------------------------------------------------------------
687,743 267
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $23,829,456) 98.5% 25,412,926 9,848
Other Assets, Less Liabilities 1.5 392,416 152
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $25,805,342 $10,000
======================================================================================================================
Expiration Notional Unrealized
Interest Rate Swap Date Amount Appreciation
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 $1,300M $8,780
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--OHIO FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,044.99 $3.86
Hypothetical (5% return before expenses) $1,000.00 $1,021.37 $3.81
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,040.21 $7.69
Hypothetical (5% return before expenses) $1,000.00 $1,017.60 $7.61
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .75% for Class A
shares and 1.50% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half
year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
General Obligations 70.6%
Education 13.9%
Other Revenue 8.9%
Utilities 4.5%
Health Care 2.1%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--OHIO FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Ohio Fund (Class A shares), the
Lehman Brothers Municipal Index and the Merrill Lynch Municipal Securities
Master Index.+
First Investors Multi-State Insured Tax Free Fund -- Ohio Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Brothers Lynch
Ohio Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 11,059 11,759 11,768
Dec-96 11,527 12,259 12,302
Dec-97 12,523 13,385 13,645
Dec-98 13,182 14,253 14,613
Dec-99 12,949 13,959 13,686
Dec-00 14,414 15,590 16,033
Dec-01 14,999 16,389 16,750
Dec-02 16,616 17,963 18,547
Dec-03 17,417 18,916 19,692
Dec-04 17,874 19,764 20,766
(INSET BOX IN CHART READS:)
First Investors Multi-State Insured Tax Free Fund--OHIO FUND
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 2.63% (3.27%)
Five Years 6.66% 5.41%
Ten Years 6.61% 5.98%
S.E.C. 30-Day Yield 2.64%
Class B Shares
One Year 1.78% (2.22%)
Five Years 5.85% 5.53%
Since Inception
(1/12/95) 5.89% 5.89%
S.E.C. 30-Day Yield 2.06%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Ohio Fund (Class A shares)
beginning 12/31/94 with theoretical investments in the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master
Index (the "Indices"). The Indices are total return performance
benchmarks for the investment grade tax exempt bond market. The
Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be
greater than or less than that shown in the line graph above for Class
A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (3.70%), 5.02% and 5.56%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.22%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (2.66%), 5.09% and 5.47%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.58%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities Master
Index this year because it is more readily available to the Fund. After this
year, we will not show a comparison to the Lehman Brothers Municipal Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--OHIO FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--99.4%
Education--13.8%
$1,200M Cincinnati State Tech. & Cmnty. College Gen.
Receipts 5 1/4% 10/1/2020 $1,323,000 $515
1,000M Cuyahoga Cmnty. College Dist. Gen. Receipts
5% 12/1/2022 1,060,000 413
1,000M University Akron Gen. Receipts 6% 1/1/2010* 1,157,500 451
- ----------------------------------------------------------------------------------------------------------------------
3,540,500 1,379
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--70.2%
1,000M Adams County Valley Local School District
7% 12/1/2015 1,285,000 501
1,000M Akron-Summit County Public Library 5% 12/1/2018 1,068,750 416
800M Avon Local School District 6 1/2% 12/1/2015 992,000 386
1,000M Beaver Creek Local School District 6.6% 12/1/2015 1,248,750 487
500M Brecksville-Broadview Heights City School District
6 1/2% 12/1/2016 546,875 213
1,095M Central Solid Waste Auth. 5% 12/1/2022 1,162,069 453
1,000M Cleveland Municipal School District 5 1/4% 12/1/2023 1,095,000 427
1,000M Dublin City School Dist. Fac. Construction &
Improvement 5% 12/1/2021 1,065,000 415
1,135M Eaton City School District 5 3/8% 12/1/2018 1,266,944 494
700M Garfield Heights 6.3% 12/1/2014 725,907 283
655M Jefferson County Jail Construction 5 3/4% 12/1/2019 783,544 305
1,000M Licking County Joint Voc. School District
5% 12/1/2020 1,065,000 415
1,300M Lorain 5 1/2% 12/1/2018 1,452,750 566
250M North Fork Local School District 5 3/4% 12/1/2018 298,438 116
500M North Royalton City School District 6% 12/1/2014 581,250 226
1,000M Oakwood City School District 5% 12/1/2020 1,071,250 417
210M Shaker Heights City School District 7.1% 12/15/2010 241,237 94
1,130M Toledo City School District 5% 12/1/2020 1,210,512 472
750M Youngstown 6% 12/1/2031 855,000 333
- ----------------------------------------------------------------------------------------------------------------------
18,015,276 7,019
- ----------------------------------------------------------------------------------------------------------------------
Health Care--2.1%
500M Lorain County Hosp. Rev. (Catholic Healthcare Partners)
5 1/2% 9/1/2011 542,500 211
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities--4.5%
$280M Hamilton Wastewater Rev. 5.9% 10/15/2011 $299,250 $117
500M Mahoning Valley Sanitary District Water Rev.
5 3/4% 11/15/2018 567,500 221
250M Ohio State Water Dev. Auth. Rev. Pure Water Series "I"
7% 12/1/2009 277,812 108
- ----------------------------------------------------------------------------------------------------------------------
1,144,562 446
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--8.8%
1,000M Hamilton County Sales Tax 5 3/4% 12/1/2013 1,140,000 444
1,000M New Albany Cmnty. Auth. Dev. 5 1/2% 10/1/2015 1,125,000 439
- ----------------------------------------------------------------------------------------------------------------------
2,265,000 883
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $23,452,888) 99.4% 25,507,838 9,938
Other Assets, Less Liabilities .6 159,614 62
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $25,667,452 $10,000
======================================================================================================================
Expiration Notional Unrealized
Interest Rate Swap Date Amount Appreciation
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 $1,300M $8,779
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--OREGON FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,041.06 $3.85
Hypothetical (5% return before expenses) $1,000.00 $1,021.37 $3.81
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,037.32 $7.68
Hypothetical (5% return before expenses) $1,000.00 $1,017.60 $7.61
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .75% for Class A
shares and 1.50% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half
year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
General Obligations 55.2%
Utilities 17.7%
Certificates of Participation 7.8%
Transportation 7.4%
Other Revenue 6.2%
Education 5.4%
Short-Term Tax-Exempt Investments 0.3%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--OREGON FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Oregon Fund (Class A shares), the
Lehman Brothers Municipal Index and the Merrill Lynch Municipal Securities
Master Index.+
First Investors Multi-State Insured Tax Free Fund -- Oregon Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Brothers Lynch
Oregon Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 11,124 11,759 11,768
Dec-96 11,533 12,259 12,302
Dec-97 12,682 13,385 13,645
Dec-98 13,480 14,253 14,613
Dec-99 13,217 13,959 13,686
Dec-00 14,676 15,590 16,033
Dec-01 15,270 16,389 16,750
Dec-02 16,803 17,963 18,547
Dec-03 17,581 18,916 19,692
Dec-04 18,069 19,764 20,766
(INSET BOX IN CHART READS:)
First Investors Multi-State Insured Tax Free Fund--OREGON FUND
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 2.78% (3.10%)
Five Years 6.46% 5.20%
Ten Years 6.72% 6.09%
S.E.C. 30-Day Yield 2.58%
Class B Shares
One Year 1.96% (2.04%)
Five Years 5.67% 5.35%
Since Inception
(1/12/95) 6.00% 6.00%
S.E.C. 30-Day Yield 2.00%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Oregon Fund (Class A shares)
beginning 12/31/94 with theoretical investments in the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master
Index (the "Indices"). The Indices are total return performance
benchmarks for the investment grade tax exempt bond market. The
Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be
greater than or less than that shown in the line graph above for Class
A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (3.55%), 4.72% and 5.38%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.16%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (2.50%), 4.80% and 5.28%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.50%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--OREGON FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--98.9%
Certificates of Participation--7.8%
Oregon State Dept. of Administrative Services:
$500M 5.65% 5/1/2007* $543,125 $185
500M 5 1/4% 5/1/2017 550,625 188
1,020M 5% 5/1/2022 1,079,925 368
100M Washington County Educ. Service Dist. 7% 6/1/2005* 102,035 35
- ----------------------------------------------------------------------------------------------------------------------
2,275,710 776
- ----------------------------------------------------------------------------------------------------------------------
Education--5.3%
200M Chemeketa Community College District 6.4% 7/1/2009 204,220 70
1,250M Oregon Health Sciences Univ. Rev. 5 1/4% 7/1/2022 1,360,938 464
- ----------------------------------------------------------------------------------------------------------------------
1,565,158 534
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--54.7%
1,000M Benton and Linn Counties School District #509J
(Corvallis) 5% 6/1/2020 1,070,000 365
300M Chemeketa Community College District
5.8% 6/1/2006* 315,375 108
Clackamas County School District:
1,000M #62C (Oregon City) 5% 6/15/2020 1,077,500 367
1,000M #086 (Canby) 5% 6/15/2020 1,075,000 367
500M Deschutes County Administrative School District #1
(Bend) 5 1/2% 6/15/2016 557,500 190
1,055M Gresham 5 3/8% 6/1/2017 1,175,006 401
250M Jackson County School District #4 (Phoenix)
5 1/2% 6/15/2016 278,750 95
635M Jefferson County School District #509J 5 1/4% 6/15/2019 697,706 238
500M Josephine County School District (Three Rivers)
5 1/4% 6/15/2017 545,000 186
245M La Grande 5 5/8% 6/1/2011 256,025 87
Linn County School District:
250M #9 (Lebanon) 6 1/8% 6/15/2010* 290,625 99
500M #55 (Sweet Home) 5 1/2% 6/15/2025 546,250 186
180M #95 (Scio) 5 3/4% 7/15/2006* 189,675 65
250M Morrow County School District #1, 5 5/8% 6/15/2014 285,625 97
250M Multnomah County School District #7 (Reynolds)
5 5/8% 6/15/2014 279,688 95
760M Polk Marion & Benton Counties School District #13J
5 5/8% 6/15/2010* 864,500 295
1,000M Puerto Rico Commonwealth 6 1/4% 7/1/2013 1,212,500 414
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
General Obligations (continued)
$1,000M Salem-Keizer School District #24J 5% 6/15/2019 $1,077,500 $367
600M Southwestern Community College District
6.05% 6/1/2010* 695,250 237
250M Tillamook County 5.6% 1/15/2007* 266,563 91
500M Umatilla County School District #16R (Pendleton)
5 1/4% 7/1/2014 569,375 194
520M Wasco County School District #12, 5 1/2% 6/15/2018 607,750 207
Washington and Clackamas Counties School
District #23 (Tigard):
600M 5 1/4% 6/1/2016 684,000 233
1,000M 5 3/8% 6/15/2020 1,110,000 379
Washington County School District:
170M #3JT (Hillsboro) 6% 11/1/2005* 175,498 60
145M #88J (Sherwood) 6.1% 6/1/2005* 147,427 50
- ----------------------------------------------------------------------------------------------------------------------
16,050,088 5,473
- ----------------------------------------------------------------------------------------------------------------------
Transportation--7.4%
500M Portland Airport Way Urban Renewal & Redev.
6% 6/15/2016 568,125 194
Puerto Rico Commonwealth Hwy. & Trans.
Auth. Revenue:
1,020M 6 1/4% 7/1/2014 1,248,225 426
300M 5 3/4% 7/1/2018 340,500 116
- ----------------------------------------------------------------------------------------------------------------------
2,156,850 736
- ----------------------------------------------------------------------------------------------------------------------
Utilities--17.5%
440M Columbia River Oregon Peoples Utility District
Elec. Sys. 5.55% 12/1/2020 487,850 166
125M Emerald Peoples Utility Dist. 7.35% 11/1/2011 156,094 53
600M Eugene Water Utility System 5.8% 8/1/2020 677,250 231
250M Marion County Solid Waste & Electric Rev.
5 3/8% 10/1/2008 262,500 89
250M Portland Gas Tax Rev. 5 3/4% 6/1/2012 261,250 89
300M Portland Sewer System Rev. Series "A" 5 1/4% 6/1/2020 330,375 113
Puerto Rico Electric Power Authority:
750M 5 1/8% 7/1/2026 795,937 271
500M 5 1/4% 7/1/2029 529,375 181
250M Salem Water & Sewer Rev. 5 1/2% 6/1/2006* 261,875 89
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--OREGON FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities (continued)
$1,000M Sunrise Water Authority Water Rev. 5 1/4% 3/1/2024 $1,091,250 $372
250M Washington County Unified Sewer Agy. 5 3/4% 10/1/2012 291,875 100
- ----------------------------------------------------------------------------------------------------------------------
5,145,631 1,754
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--6.2%
500M Oregon State Administrative Services Lottery
5 3/4% 4/1/2009* 570,000 194
Portland Urban Renewal & Redevelopment:
405M Oregon Conv. Ctr. Series "A" 5 1/2% 6/15/2020 448,031 153
700M South Parks Blocks Series "A" 5 3/4% 6/15/2017 793,625 271
- ----------------------------------------------------------------------------------------------------------------------
1,811,656 618
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $27,071,780) 29,005,093 9,891
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--.3%
100M Puerto Rico Commonwealth Govt. Dev. Bank Adjustable
Rate Note 1.92%** (cost $100,000) 100,000 34
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $27,171,780) 99.2% 29,105,093 9,925
Other Assets, Less Liabilities .8 220,410 75
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $29,325,503 $10,000
======================================================================================================================
Unrealized
Expiration Notional Appreciation
Interest Rate Swaps Date Amount (Depreciation)
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 4.037% with Citibank, N.A. 7/30/2014 $1,400M $(52,964)
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 1,400M 9,455
- ----------------------------------------------------------------------------------------------------------------------
$2,800M $(43,509)
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset periodically by the issuer. The
interest rate shown is reset weekly and is the rate in effect at December 31, 2004.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--PENNSYLVANIA FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,041.10 $4.62
Hypothetical (5% return before expenses) $1,000.00 $1,020.62 $4.57
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,036.90 $8.45
Hypothetical (5% return before expenses) $1,000.00 $1,016.84 $8.36
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .90% for Class A
shares and 1.65% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half
year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
General Obligations 33.6%
Utilities 16.8%
Education 14.0%
Other Revenue 13.6%
Healthcare 13.5%
Transportation 6.7%
Short-Term Municipal Investments 1.8%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--PENNSYLVANIA FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Pennsylvania Fund (Class A shares),
the Lehman Brothers Municipal Index and the Merrill Lynch Municipal
Securities Master Index.+
First Investors Multi-State Insured Tax Free Fund -- Pennsylvania Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Brothers Lynch
Pennsylvania Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 11,153 11,759 11,768
Dec-96 11,531 12,259 12,302
Dec-97 12,585 13,385 13,645
Dec-98 13,243 14,253 14,613
Dec-99 12,947 13,959 13,686
Dec-00 14,409 15,590 16,033
Dec-01 15,054 16,389 16,750
Dec-02 16,668 17,963 18,547
Dec-03 17,363 18,916 19,692
Dec-04 17,770 19,764 20,766
(INSET BOX IN CHART READS:)
First Investors Multi-State Insured Tax Free Fund--PENNSYLVANIA FUND
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 2.35% (3.57%)
Five Years 6.54% 5.29%
Ten Years 6.54% 5.92%
S.E.C. 30-Day Yield 2.32%
Class B Shares
One Year 1.52% (2.48%)
Five Years 5.74% 5.41%
Since Inception
(1/12/95) 5.83% 5.83%
S.E.C. 30-Day Yield 1.72%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Pennsylvania Fund (Class A
shares) beginning 12/31/94 with theoretical investments in the Lehman
Brothers Municipal Index and the Merrill Lynch Municipal Securities
Master Index (the "Indices"). The Indices are total return performance
benchmarks for the investment grade tax exempt bond market. The
Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be
greater than or less than that shown in the line graph above for Class
A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (3.82%), 5.05% and 5.64%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.08%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (2.73%), 5.14% and 5.56%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.45%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--PENNSYLVANIA FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--97.1%
Education--13.9%
$1,000M Pennsylvania State Higher Educ. Assistance Agy.
6 1/8% 12/15/2010* $1,172,500 $237
1,410M Pennsylvania State Higher Educ. Facs. Authority
5 1/2% 6/15/2014 1,566,863 317
State Public School Bldg. Auth. College Revenue:
1,000M Butler Cnty. Cmnty. College Proj. 5.7% 7/15/2010* 1,143,750 231
500M Delaware Cnty. Cmnty. College Proj.
5 3/4% 10/1/2016 566,875 115
1,000M Northampton Cnty. Area Series "A" 5% 3/1/2020 1,072,500 217
1,265M Richland School District 5% 11/15/2022 1,342,481 272
- ----------------------------------------------------------------------------------------------------------------------
6,864,969 1,389
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--33.2%
1,000M Adams County 5 3/8% 5/15/2011* 1,132,500 229
1,000M Ambridge Area Sch. Dist. Series "B" 5 1/8% 5/1/2023 1,065,000 215
600M Erie 5.7% 5/15/2007* 647,250 131
1,545M Garnet Valley School District 5 1/2% 4/1/2014 1,745,850 353
1,000M General McLane School District 5 3/4% 5/15/2007* 1,080,000 219
1,065M Mifflin County 5 1/2% 9/1/2020 1,183,481 239
1,365M Owen J. Roberts School District 5 1/2% 8/15/2016 1,535,625 311
Pennsbury School District:
1,000M 5 1/2% 1/15/2017 1,117,500 226
1,085M 5% 8/1/2025 1,139,250 231
385M Philadelphia 6% 11/15/2014 394,521 80
Philadelphia School District:
1,180M 6% 3/1/2010* 1,358,475 275
1,000M 5 1/2% 2/1/2012* 1,141,250 231
1,600M Pittsburgh 5 1/2% 9/1/2014 1,790,000 362
1,000M Uniontown Area Sch. Dist. Series "A" 5 1/2% 10/1/2030 1,081,250 219
- ----------------------------------------------------------------------------------------------------------------------
16,411,952 3,321
- ----------------------------------------------------------------------------------------------------------------------
Health Care--13.4%
Allegheny County Hospital Development Authority:
1,000M Allegheny General Hospital Proj. 6.2% 9/1/2007* 1,100,000 223
Health Center--University of Pittsburgh:
1,000M 5.6% 4/1/2013 1,077,500 218
1,000M 5.65% 4/1/2014 1,077,500 218
1,000M Berks County Municipal Auth. Hosp. (Reading Hosp.
Med. Ctr.) 5.7% 10/1/2014 1,165,000 236
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--PENNSYLVANIA FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care (continued)
$1,000M Dauphin Cnty. Gen. Hlth. Sys. (Pinnacle Hlth. Sys.)
5 1/2% 5/15/2013 $1,070,000 $216
1,000M Pennsylvania State Higher Educ. Facs. Auth.
Hlth. Svcs. 5.7% 11/15/2011 (Defaulted) (Note 1A) 1,106,250 224
- ----------------------------------------------------------------------------------------------------------------------
6,596,250 1,335
- ----------------------------------------------------------------------------------------------------------------------
Transportation--6.6%
1,620M Allegheny County Port. Auth. Spl. Rev. 5 1/4% 3/1/2020 1,755,675 355
1,375M Pennsylvania State Turnpike Commn. Tpk. Rev.
5 1/4% 12/1/2022 1,514,219 306
- ----------------------------------------------------------------------------------------------------------------------
3,269,894 661
- ----------------------------------------------------------------------------------------------------------------------
Utilities--16.6%
1,000M Allegheny County Sanitation Auth. Sewer Rev.
6 1/4% 12/1/2014 1,025,000 208
1,325M Bucks County Water & Sewer Auth. Rev.
5 3/8% 6/1/2019 1,462,469 296
1,000M Delaware Cnty. Regl. Wtr. Quality Cntl. Auth. Swr.
Rev. 5% 5/1/2025 1,048,750 212
1,000M Erie Sewer Authority Rev. 5 7/8% 6/1/2010* 1,150,000 232
2,950M Pittsburgh Water & Sewer Auth. Rev. 6 1/2% 9/1/2013 3,540,000 716
- ----------------------------------------------------------------------------------------------------------------------
8,226,219 1,664
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--13.4%
Philadelphia Auth. Indl. Dev. Lease Revenue:
1,000M 5 1/2% 10/1/2014 1,125,000 228
1,000M 5 1/2% 10/1/2016 1,117,500 226
1,000M Philadelphia Housing Auth. Rev. Bonds Series "A"
5 1/2% 12/1/2019 1,130,000 229
Philadelphia Redev. Neighborhood Transformation
Series "A":
1,000M 5 1/2% 4/15/2016 1,120,000 226
1,000M 5 1/2% 4/15/2019 1,113,750 226
1,000M Washington County Indl. Dev. Auth. (West Penn
Pwr. Co.) 6.05% 4/1/2014 1,029,210 208
- ----------------------------------------------------------------------------------------------------------------------
6,635,460 1,343
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $43,873,897) 48,004,744 9,713
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--1.8%
$900M Delaware Cnty. Indl. Dev. Auth. Arpt. Facs. Rev.
Adjustable Rate Note 2.13%** (cost $900,000) $900,000 $182
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $44,773,897) 98.9% 48,904,744 9,895
Other Assets, Less Liabilities 1.1 517,178 105
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $49,421,922 $10,000
======================================================================================================================
Expiration Notional Unrealized
Interest Rate Swap Date Amount Appreciation
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 $2,400M $16,208
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset periodically by the issuer. The
interest rate shown is reset daily and is the rate in effect at December 31, 2004.
See notes to financial statements
Fund Expenses
First Investors Multi-State Insured Tax Free Fund--VIRGINIA FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing those costs with those of other
mutual funds. Please refer to page 3 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(7/1/04) (12/31/04) (7/1/04-12/31/04)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,044.34 $4.62
Hypothetical (5% return before expenses) $1,000.00 $1,020.62 $4.57
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,040.70 $8.46
Hypothetical (5% return before expenses) $1,000.00 $1,016.84 $8.36
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .90% for Class A
shares and 1.65% for Class B shares, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half
year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART: By Sector)
General Obligations 29.0%
Other Revenue 25.7%
Utilities 16.6%
Transportation 14.7%
Health Care 8.3%
Education 5.7%
Portfolio holdings and allocations are subject to change. Percentages are
as of December 31, 2004, and are based on the total market value of
investments.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--VIRGINIA FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Virginia Fund (Class A shares), the
Lehman Brothers Municipal Index and the Merrill Lynch Municipal Securities
Master Index.+
First Investors Multi-State Insured Tax Free Fund -- Virginia Fund
Graph Plot Points
As of December 31, 2004
Lehman Merrill
Brothers Lynch
Virginia Municipal Municipal
Fund Index Index
Dec-94 $ 9,425 $10,000 $10,000
Dec-95 11,070 11,759 11,768
Dec-96 11,454 12,259 12,302
Dec-97 12,488 13,385 13,645
Dec-98 13,198 14,253 14,613
Dec-99 12,851 13,959 13,686
Dec-00 14,325 15,590 16,033
Dec-01 14,904 16,389 16,750
Dec-02 16,415 17,963 18,547
Dec-03 17,173 18,916 19,692
Dec-04 17,651 19,764 20,766
(INSET BOX IN CHART READS:)
First Investors Multi-State Insured Tax Free Fund--VIRGINIA FUND
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 2.78% (3.09%)
Five Years 6.55% 5.30%
Ten Years 6.47% 5.85%
S.E.C. 30-Day Yield 2.72%
Class B Shares
One Year 1.98% (2.02%)
Five Years 5.75% 5.42%
Since Inception
(1/12/95) 5.76% 5.76%
S.E.C. 30-Day Yield 2.14%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Virginia Fund (Class A shares)
beginning 12/31/94 with theoretical investments in the Lehman Brothers
Municipal Index and the Merrill Lynch Municipal Securities Master
Index (the "Indices"). The Indices are total return performance
benchmarks for the investment grade tax exempt bond market. The
Indices do not take into account fees and expenses or cost of
insurance of bonds held by an insured tax-exempt bond fund. It is not
possible to invest directly in these Indices. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be
greater than or less than that shown in the line graph above for Class
A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 12/31/04)
include the reinvestment of all distributions. "N.A.V. Only" returns are
calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns shown are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods
shown, some of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Returns for One Year, Five Years and Ten Years
would have been (3.35%), 5.01% and 5.48%, respectively, and the S.E.C.
30-Day Yield for December 2004 would have been 2.44%. The Class B
"S.E.C. Standardized" Average Annual Total Returns for One Year, Five
Years and Since Inception would have been (2.28%), 5.10% and 5.39%,
respectively, and the S.E.C. 30-Day Yield for December 2004 would have
been 1.84%. Results represent past performance and do not indicate
future results. The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Municipal Index figures are from Lehman Brothers, Inc., Merrill Lynch
Municipal Securities Master Index figures are from Merrill Lynch & Co.
and all other figures are from First Investors Management Company, Inc.
+ We have added a comparison to the Merrill Lynch Municipal Securities
Master Index this year because it is more readily available to the Fund.
After this year, we will not show a comparison to the Lehman Brothers
Municipal Index.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--VIRGINIA FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--98.1%
Education--5.6%
$1,000M Norfolk Redev. & Housing Auth. (Tidewater
Cmnty. College) 5 7/8% 11/1/2005* $1,051,000 $274
1,000M Virginia College Building Auth. Educ. Facs. Rev.
5 1/4% 2/1/2017 1,093,750 286
- ----------------------------------------------------------------------------------------------------------------------
2,144,750 560
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--28.5%
1,000M Hampton 5 3/4% 2/1/2014 1,135,000 296
1,065M Harrisonburg Public Safety & Steam Plant Series "A"
5% 7/15/2020 1,144,875 299
1,000M Lunenburg County Series "B" 5 1/4% 2/1/2029 1,070,000 279
Norfolk:
1,730M 5% 7/1/2020 1,844,612 481
1,100M 5% 7/1/2021 1,168,750 305
1,000M Puerto Rico Pub. Bldgs. Auth. 6 1/4 7/1/2014 1,223,750 319
Richmond:
1,000M 5 3/8% 1/15/2015 1,102,500 288
1,000M 5 1/2% 1/15/2017 1,120,000 292
1,000M Roanoke Public Impt. Series "A" 5 1/4% 10/1/2020 1,111,250 290
- ----------------------------------------------------------------------------------------------------------------------
10,920,737 2,849
- ----------------------------------------------------------------------------------------------------------------------
Health Care--8.2%
Roanoke Industrial Development Authority:
1,000M Carilion Health Sys. Series "A" 5 1/2% 7/1/2021 1,110,000 289
1,675M Roanoke Memorial Hosp. Proj. 6 1/8% 7/1/2017 2,026,750 529
- ----------------------------------------------------------------------------------------------------------------------
3,136,750 818
- ----------------------------------------------------------------------------------------------------------------------
Transportation--14.4%
Metropolitan Washington DC Airport Auth. System:
960M Series "B" 5.1% 10/1/2021 1,018,800 266
500M Series "B" 5 1/8% 10/1/2022 528,125 138
1,585M Norfolk Airport Auth. 5 3/8% 7/1/2015 1,749,444 456
Puerto Rico Commwlth. Hwy. & Trans. Auth.
Inverse Floater:**
1,150M 7.93% 7/1/2020 1,348,375 351
750M 7.93% 7/1/2022 861,562 225
- ----------------------------------------------------------------------------------------------------------------------
5,506,306 1,436
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities--16.3%
$1,165M Bristol Utility Sys. Rev. 5 3/4% 7/15/2015 $1,379,069 $360
1,000M Norfolk Water Rev. 5 7/8% 11/1/2015 1,049,220 274
500M Powhatan Cnty. Econ. Dev. Auth. Lease Rev.
5 1/8% 7/15/2018 543,750 142
Puerto Rico Electric Power Authority:
1,000M 5 3/8% 7/1/2017 1,118,750 292
1,000M Series "II" 5 1/4% 7/1/2022 1,086,250 283
1,000M Virginia Beach Water & Sewer Rev. 5% 10/1/2018 1,066,250 278
- ----------------------------------------------------------------------------------------------------------------------
6,243,289 1,629
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--25.1%
1,000M Dinwiddle Cnty. Indl. Dev. Auth. Lease Rev.
Series "B" 5% 2/15/2024 1,048,750 274
1,330M Front Royal & Warren Cnty. Va. Indl. Dev. Auth.
Lease Rev. 5% 4/1/2022 1,413,125 369
1,000M Gloucester County Indl. Dev. Auth. (Courthouse Proj.)
5 3/8% 11/1/2020 1,093,750 285
500M Henrico County Econ. Dev. Auth. (Regional Jail Proj.)
5 5/8% 11/1/2015 565,000 147
1,000M Middlesex County Indl. Dev. Auth. Lease Rev.
5 1/8% 8/1/2023 1,077,500 281
1,000M Montgomery County Indl. Dev. Auth. Series "C"
6% 1/15/2017 1,160,000 303
Southwest Regional Jail Authority Revenue:
1,000M 5 1/8% 9/1/2021 1,075,000 280
1,020M 5 1/8% 9/1/2022 1,091,400 285
1,010M Virginia State Res. Auth. Infrastructure Rev. Series "B"
5 1/2% 5/1/2018 1,119,838 292
- ----------------------------------------------------------------------------------------------------------------------
9,644,363 2,516
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $34,790,234) 98.1% 37,596,195 9,808
Other Assets, Less Liabilities 1.9 736,902 192
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $38,333,097 $10,000
======================================================================================================================
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--VIRGINIA FUND
December 31, 2004
- ----------------------------------------------------------------------------------------------------------------------
Unrealized
Expiration Notional Appreciation
Interest Rate Swaps Date Amount (Depreciation)
- ----------------------------------------------------------------------------------------------------------------------
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 4.037% with Citibank, N.A. 7/30/2014 $2,100M $(79,446)
Receive quarterly a floating rate based on the
BMA Index and pay quarterly a fixed rate
equal to 3.524% with Bear Stearns Bank plc 10/22/2014 2,000M 13,507
- ----------------------------------------------------------------------------------------------------------------------
$4,100M $(65,939)
- ----------------------------------------------------------------------------------------------------------------------
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Inverse floating rate security (see Note 1F). The interest rates are reset weekly by the issuer. The
interest rates shown are the rates in effect at December 31, 2004.
See notes to financial statements
This page intentionally left blank.
Statements of Assets and Liabilities
FIRST INVESTORS
December 31, 2004
- -----------------------------------------------------------------------------------------------------------------------
INSURED
TAX-EXEMPT INTERMEDIATE INSURED INSURED
MONEY MARKET TAX EXEMPT TAX EXEMPT TAX EXEMPT II
- -----------------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $13,861,092 $68,679,239 $728,866,565 $100,430,591
============ ============ ============ ============
At value (Note 1A) $13,861,092 $69,861,268 $821,000,522 $104,902,398
Cash 59,756 91,136 613,082 92,190
Receivables:
Interest 106,669 762,277 12,499,046 1,094,589
Shares sold -- 45,114 59,272 247,643
Unrealized gain on swap agreements -- -- -- --
Other assets 4,891 -- 81,733 --
------------ ------------ ------------ ------------
Total Assets 14,032,408 70,759,795 834,253,655 106,336,820
------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased -- -- 3,356,419 5,994,979
Distributions payable 1,067 28,083 649,766 177,291
Shares redeemed 8,381 38,000 1,006,147 37,968
Unrealized loss on swap agreements -- -- 620,339 65,945
Accrued advisory fees -- 32,444 427,494 52,918
Accrued shareholder servicing costs 2,860 3,950 46,100 6,550
Accrued expenses 12,758 12,897 52,719 7,876
------------ ------------ ------------ ------------
Total Liabilities 25,066 115,374 6,158,984 6,343,527
------------ ------------ ------------ ------------
Net Assets $14,007,342 $70,644,421 $828,094,671 $99,993,293
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $14,007,342 $69,466,324 $737,473,557 $95,553,792
Undistributed net investment income -- 38,646 253,538 33,639
Accumulated net realized loss on investments
and swap agreements -- (42,578) (1,146,042) --
Net unrealized appreciation in value of investments
and swap agreements -- 1,182,029 91,513,618 4,405,862
------------ ------------ ------------ ------------
Total $14,007,342 $70,644,421 $828,094,671 $99,993,293
============ ============ ============ ============
Net Assets:
Class A $13,984,635 $59,519,830 $824,506,887 $83,554,740
Class B $22,707 $11,124,591 $3,587,784 $16,438,553
Shares outstanding (Note 2):
Class A 13,984,635 9,233,987 80,416,312 5,418,383
Class B 22,707 1,723,036 350,579 1,066,365
Net asset value and redemption price per share - Class A $1.00+ $6.45 $10.25 $15.42
============ ============ ============ ============
Maximum offering price per share - Class A
(Net asset value/.9425)* N/A $6.84 $10.88 $16.36
============ ============ ============ ============
Net asset value and offering price per share - Class B
(Note 2) $1.00 $6.46 $10.23 $15.42
============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------------------------
NEW YORK MULTI-STATE INSURED TAX FREE FUND
INSURED --------------------------------------------
TAX FREE ARIZONA CALIFORNIA COLORADO
- -----------------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $169,055,351 $18,409,944 $26,076,004 $9,918,084
============ ============ ============ ============
At value (Note 1A) $184,257,313 $19,944,089 $28,610,050 $10,693,586
Cash 451,365 95,486 140,353 108,774
Receivables:
Interest 2,781,502 433,536 444,275 58,911
Shares sold 408,851 10,508 238 5,000
Unrealized gain on swap agreements -- 6,754 -- 3,377
Other assets 10,408 -- 628 --
------------ ------------ ------------ ------------
Total Assets 187,909,439 20,490,373 29,195,544 10,869,648
------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased 1,490,607 -- -- --
Distributions payable 146,573 39,999 40,265 11,229
Shares redeemed 12,693 1,473 160,843 --
Unrealized loss on swap agreements 534,312 -- 47,292 --
Accrued advisory fees 94,194 6,574 18,002 1,485
Accrued shareholder servicing costs 9,490 873 1,218 580
Accrued expenses 33,759 7,463 8,159 5,333
------------ ------------ ------------ ------------
Total Liabilities 2,321,628 56,382 275,779 18,627
------------ ------------ ------------ ------------
Net Assets $185,587,811 $20,433,991 $28,919,765 $10,851,021
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $172,977,310 $18,885,006 $26,405,522 $10,060,614
Undistributed net investment income 91,533 8,086 28,717 15,005
Accumulated net realized loss on investments
and swap agreements (2,148,682) -- (1,228) (3,477)
Net unrealized appreciation in value of investments
and swap agreements 14,667,650 1,540,899 2,486,754 778,879
------------ ------------ ------------ ------------
Total $185,587,811 $20,433,991 $28,919,765 $10,851,021
============ ============ ============ ============
Net Assets:
Class A $177,974,983 $17,911,021 $25,873,335 $9,705,239
Class B $7,612,828 $2,522,970 $3,046,430 $1,145,782
Shares outstanding (Note 2):
Class A 12,193,508 1,291,784 2,067,138 703,121
Class B 522,182 181,887 243,264 83,022
Net asset value and redemption price per share - Class A $14.60 $13.87 $12.52 $13.80
============ ============ ============ ============
Maximum offering price per share - Class A
(Net asset value/.9425)* $15.49 $14.72 $13.28 $14.64
============ ============ ============ ============
Net asset value and offering price per share - Class B
(Note 2) $14.58 $13.87 $12.52 $13.80
============ ============ ============ ============
* On purchases of $100,000 or more, the sales charge is reduced.
+ Also maximum offering price per share.
See notes to financial statements
Statements of Assets and Liabilities
FIRST INVESTORS
December 31, 2004
- -----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------------
CONNECTICUT FLORIDA GEORGIA MARYLAND
- -----------------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $34,285,827 $36,503,150 $10,994,363 $29,651,544
============ ============ ============ ============
At value (Note 1A) $36,547,945 $39,296,169 $11,815,835 $31,929,948
Cash 71,662 75,847 160,553 9,054
Receivables:
Interest 603,032 536,359 164,468 646,388
Shares sold 41,145 2,685 236 2,391
Unrealized gain on swap agreements -- -- -- --
Other assets -- -- -- --
------------ ------------ ------------ ------------
Total Assets 37,263,784 39,911,060 12,141,092 32,587,781
------------ ------------ ------------ ------------
Liabilities
Payables:
Distributions payable 32,571 78,040 10,901 42,505
Shares redeemed 78,828 39,382 -- 125,601
Unrealized loss on swap agreements 25,000 62,155 14,863 110,255
Accrued advisory fees 14,182 15,377 1,672 12,367
Accrued shareholder servicing costs 1,700 1,727 504 1,260
Accrued expenses 6,875 4,751 3,099 8,692
------------ ------------ ------------ ------------
Total Liabilities 159,156 201,432 31,039 300,680
------------ ------------ ------------ ------------
Net Assets $37,104,628 $39,709,628 $12,110,053 $32,287,101
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $34,845,906 $36,931,357 $11,342,723 $30,257,235
Undistributed net investment income 31,185 47,407 6,519 49,947
Accumulated net realized loss on investments
and swap agreements (9,581) -- (45,798) (188,230)
Net unrealized appreciation in value of investments
and swap agreements 2,237,118 2,730,864 806,609 2,168,149
------------ ------------ ------------ ------------
Total $37,104,628 $39,709,628 $12,110,053 $32,287,101
============ ============ ============ ============
Net Assets:
Class A $32,130,021 $36,477,439 $10,815,368 $27,106,915
Class B $4,974,607 $3,232,189 $1,294,685 $5,180,186
Shares outstanding (Note 2):
Class A 2,379,744 2,660,709 787,410 1,932,018
Class B 368,886 235,578 94,324 368,968
Net asset value and redemption price per share - Class A $13.50 $13.71 $13.74 $14.03
============ ============ ============ ============
Maximum offering price per share - Class A
(Net asset value/.9425)* $14.32 $14.55 $14.58 $14.89
============ ============ ============ ============
Net asset value and offering price per share - Class B
(Note 2) $13.49 $13.72 $13.73 $14.04
============ ============ ============ ============
- --------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
--------------------------------------------
MASSACHUSETTS MICHIGAN MINNESOTA
- --------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $26,233,091 $34,475,819 $14,081,268
============ ============ ============
At value (Note 1A) $28,612,594 $37,951,331 $15,122,088
Cash 2,723 37,931 12,345
Receivables:
Interest 361,449 503,212 291,030
Shares sold 30,289 89,096 --
Unrealized gain on swap agreements 7,428 13,507 --
Other assets 644 607 528
------------ ------------ ------------
Total Assets 29,015,127 38,595,684 15,425,991
------------ ------------ ------------
Liabilities
Payables:
Distributions payable 13,842 44,984 10,726
Shares redeemed 20,341 339,539 --
Unrealized loss on swap agreements -- -- --
Accrued advisory fees 11,064 20,608 1,485
Accrued shareholder servicing costs 1,560 2,179 979
Accrued expenses 16,517 17,826 3,724
------------ ------------ ------------
Total Liabilities 63,324 425,136 16,914
------------ ------------ ------------
Net Assets $28,951,803 $38,170,548 $15,409,077
============ ============ ============
Net Assets Consist of:
Capital paid in $26,838,616 $34,671,226 $14,508,272
Undistributed net investment income 6,751 10,303 15,374
Accumulated net realized loss on investments
and swap agreements (280,495) -- (155,389)
Net unrealized appreciation in value of investments
and swap agreements 2,386,931 3,489,019 1,040,820
------------ ------------ ------------
Total $28,951,803 $38,170,548 $15,409,077
============ ============ ============
Net Assets:
Class A $25,328,578 $35,868,907 $14,286,936
Class B $3,623,225 $2,301,641 $1,122,141
Shares outstanding (Note 2):
Class A 2,093,773 2,807,703 1,183,116
Class B 299,196 180,427 92,776
Net asset value and redemption price per share - Class A $12.10 $12.78 $12.08
============ ============ ============
Maximum offering price per share - Class A
(Net asset value/.9425)* $12.84 $13.56 $12.82
============ ============ ============
Net asset value and offering price per share - Class B
(Note 2) $12.11 $12.76 $12.10
============ ============ ============
* On purchases of $100,000 or more, the sales charge is reduced.
See notes to financial statements
Statements of Assets and Liabilities
FIRST INVESTORS
December 31, 2004
- -----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------------
MISSOURI NEW JERSEY NORTH CAROLINA OHIO
- -----------------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $10,190,592 $62,413,251 $23,829,456 $23,452,888
============ ============ ============ ============
At value (Note 1A) $10,921,688 $67,780,648 $25,412,926 $25,507,838
Cash 5,131 975,271 84,019 49,781
Receivables:
Interest 172,819 1,241,726 276,907 160,899
Shares sold 51,200 10,067 64,319 489
Unrealized gain on swap agreements -- -- 8,780 8,779
Other assets -- 277 -- 572
------------ ------------ ------------ ------------
Total Assets 11,150,838 70,007,989 25,846,951 25,728,358
------------ ------------ ------------ ------------
Liabilities
Payables:
Distributions payable 14,651 62,097 21,148 24,867
Shares redeemed 29 27,530 -- 14,867
Unrealized loss on swap agreements 14,864 109,448 -- --
Accrued advisory fees 1,382 32,981 13,898 7,344
Accrued shareholder servicing costs 516 2,731 1,280 1,530
Accrued expenses 6,561 24,019 5,283 12,298
------------ ------------ ------------ ------------
Total Liabilities 38,003 258,806 41,609 60,906
------------ ------------ ------------ ------------
Net Assets $11,112,835 $69,749,183 $25,805,342 $25,667,452
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $10,445,384 $64,932,488 $24,221,397 $23,647,834
Undistributed net investment income 13,036 39,497 19,958 25,428
Accumulated net realized loss on investments
and swap agreements (61,817) (480,751) (28,263) (69,539)
Net unrealized appreciation in value of investments
and swap agreements 716,232 5,257,949 1,592,250 2,063,729
------------ ------------ ------------ ------------
Total $11,112,835 $69,749,183 $25,805,342 $25,667,452
============ ============ ============ ============
Net Assets:
Class A $7,838,874 $63,234,824 $21,430,219 $22,009,740
Class B $3,273,961 $6,514,359 $4,375,123 $3,657,712
Shares outstanding (Note 2):
Class A 568,880 4,821,242 1,584,212 1,724,178
Class B 237,481 497,816 323,482 286,369
Net asset value and redemption price per share - Class A $13.78 $13.12 $13.53 $12.77
============ ============ ============ ============
Maximum offering price per share - Class A
(Net asset value/.9425)* $14.62 $13.92 $14.36 $13.55
============ ============ ============ ============
Net asset value and offering price per share - Class B
(Note 2) $13.79 $13.09 $13.53 $12.77
============ ============ ============ ============
- --------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
--------------------------------------------
OREGON PENNSYLVANIA VIRGINIA
- --------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $27,171,780 $44,773,897 $34,790,234
============ ============ ============
At value (Note 1A) $29,105,093 $48,904,744 $37,596,195
Cash 56,810 16,642 104,920
Receivables:
Interest 282,734 572,779 740,300
Shares sold 7,718 63,351 45,319
Unrealized gain on swap agreements -- 16,208 --
Other assets -- -- --
------------ ------------ ------------
Total Assets 29,452,355 49,573,724 38,486,734
------------ ------------ ------------
Liabilities
Payables:
Distributions payable 17,980 62,680 55,482
Shares redeemed 43,239 56,431 4,045
Unrealized loss on swap agreements 43,509 -- 65,939
Accrued advisory fees 9,814 20,998 16,124
Accrued shareholder servicing costs 1,808 2,405 1,670
Accrued expenses 10,502 9,288 10,377
------------ ------------ ------------
Total Liabilities 126,852 151,802 153,637
------------ ------------ ------------
Net Assets $29,325,503 $49,421,922 $38,333,097
============ ============ ============
Net Assets Consist of:
Capital paid in $27,621,114 $45,480,050 $35,731,585
Undistributed net investment income 6,881 33,931 39,797
Accumulated net realized loss on investments
and swap agreements (192,296) (239,114) (178,307)
Net unrealized appreciation in value of investments
and swap agreements 1,889,804 4,147,055 2,740,022
------------ ------------ ------------
Total $29,325,503 $49,421,922 $38,333,097
============ ============ ============
Net Assets:
Class A $26,630,792 $45,969,301 $35,941,339
Class B $2,694,711 $3,452,621 $2,391,758
Shares outstanding (Note 2):
Class A 2,017,180 3,451,215 2,694,818
Class B 204,442 259,382 179,932
Net asset value and redemption price per share - Class A $13.20 $13.32 $13.34
============ ============ ============
Maximum offering price per share - Class A
(Net asset value/.9425)* $14.01 $14.13 $14.15
============ ============ ============
Net asset value and offering price per share - Class B
(Note 2) $13.18 $13.31 $13.29
============ ============ ============
* On purchases of $100,000 or more, the sales charge is reduced.
See notes to financial statements
Statements of Operations
FIRST INVESTORS
Year Ended December 31, 2004
- -----------------------------------------------------------------------------------------------------------------------
INSURED
TAX-EXEMPT INTERMEDIATE INSURED INSURED
MONEY MARKET TAX EXEMPT TAX EXEMPT TAX EXEMPT II
- -----------------------------------------------------------------------------------------------------------------------
Investment Income
Interest income $186,362 $2,162,761 $43,307,092 $4,291,760
------------ ------------ ------------ ------------
Expenses (Notes 1 and 5):
Advisory fees 77,912 427,932 6,380,029 960,216
Distribution plan expenses - Class A -- 148,773 2,286,208 198,237
Distribution plan expenses - Class B 132 118,128 39,268 167,266
Shareholder servicing costs 34,386 42,542 550,962 70,946
Professional fees 24,434 19,037 81,589 30,005
Registration fees 38,297 33,728 38,297 38,775
Custodian fees 6,551 11,988 73,585 14,040
Reports to shareholders 3,986 6,362 81,102 9,247
Directors/trustees' fees 584 2,503 31,456 3,522
Other expenses 7,279 29,744 222,815 36,453
------------ ------------ ------------ ------------
Total expenses 193,561 840,737 9,785,311 1,528,707
Less: Expenses waived (83,085) (71,337) (1,190,939) (437,172)
Expenses paid indirectly (911) (3,311) (13,709) (6,100)
------------ ------------ ------------ ------------
Net expenses 109,565 766,089 8,580,663 1,085,435
------------ ------------ ------------ ------------
Net investment income 76,797 1,396,672 34,726,429 3,206,325
------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investments
and Swap Agreements (Note 4):
Net realized gain (loss) on investments and swap agreements -- (42,578) (996,161) 747,721
Net unrealized depreciation of investments
and swap agreements -- (621,532) (12,925,151) (108,480)
------------ ------------ ------------ ------------
Net gain (loss) on investments and swap agreements -- (664,110) (13,921,312) 639,241
------------ ------------ ------------ ------------
Net Increase in Net Assets Resulting from Operations $76,797 $732,562 $20,805,117 $3,845,566
============ ============ ============ ============
- ------------------------------------------------------------ ------------ --------------------------------------------
NEW YORK MULTI-STATE INSURED TAX FREE FUND
INSURED --------------------------------------------
TAX FREE ARIZONA CALIFORNIA COLORADO
- -------------------------------------------------------------------------- --------------------------------------------
Investment Income
Interest income $9,133,348 $1,060,497 $1,395,086 $549,743
------------ ------------ ------------ ------------
Expenses (Notes 1 and 5):
Advisory fees 1,409,116 168,614 222,236 88,282
Distribution plan expenses - Class A 450,030 49,211 65,973 26,008
Distribution plan expenses - Class B 78,700 27,975 32,423 13,677
Shareholder servicing costs 111,495 10,524 13,567 7,084
Professional fees 38,988 8,642 11,187 6,382
Registration fees 1,391 1,632 1,632 461
Custodian fees 19,212 5,089 5,781 3,343
Reports to shareholders 14,933 1,624 2,144 1,221
Directors/trustees' fees 6,927 841 1,094 445
Other expenses 60,798 12,654 13,370 10,552
------------ ------------ ------------ ------------
Total expenses 2,191,590 286,806 369,407 157,455
Less: Expenses waived (281,823) (94,984) (91,649) (75,664)
Expenses paid indirectly (12,039) (2,210) (1,594) (902)
------------ ------------ ------------ ------------
Net expenses 1,897,728 189,612 276,164 80,889
------------ ------------ ------------ ------------
Net investment income 7,235,620 870,885 1,118,922 468,854
------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investments
and Swap Agreements (Note 4):
Net realized gain (loss) on investments and swap agreements (2,148,682) 69,920 (1,228) 32,443
Net unrealized depreciation of investments
and swap agreements (696,617) (230,690) (29,430) (162,016)
------------ ------------ ------------ ------------
Net gain (loss) on investments and swap agreements (2,845,299) (160,770) (30,658) (129,573)
------------ ------------ ------------ ------------
Net Increase in Net Assets Resulting from Operations $4,390,321 $710,115 $1,088,264 $339,281
============ ============ ============ ============
See notes to financial statements
Statements of Operations
FIRST INVESTORS
Year Ended December 31, 2004
- -----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------------
CONNECTICUT FLORIDA GEORGIA MARYLAND
- -----------------------------------------------------------------------------------------------------------------------
Investment Income
Interest income $1,794,542 $1,918,170 $520,810 $1,526,605
------------ ------------ ------------ ------------
Expenses (Notes 1 and 5):
Advisory fees 279,246 305,651 84,999 244,506
Distribution plan expenses - Class A 79,608 93,570 24,932 67,748
Distribution plan expenses - Class B 53,896 33,255 13,605 55,016
Shareholder servicing costs 20,416 19,864 5,093 15,274
Professional fees 12,267 16,252 7,280 10,626
Registration fees 1,046 461 461 1,584
Custodian fees 7,330 7,200 2,863 5,961
Reports to shareholders 2,130 2,923 901 2,579
Directors/trustees' fees 1,367 1,499 413 1,146
Other expenses 22,103 15,839 9,887 21,341
------------ ------------ ------------ ------------
Total expenses 479,409 496,514 150,434 425,781
Less: Expenses waived (119,982) (103,444) (70,389) (104,342)
Expenses paid indirectly (2,562) (1,374) (1,867) (3,113)
------------ ------------ ------------ ------------
Net expenses 356,865 391,696 78,178 318,326
------------ ------------ ------------ ------------
Net investment income 1,437,677 1,526,474 442,632 1,208,279
------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investments
and Swap Agreements (Note 4):
Net realized gain (loss) on investments and swap agreements (9,581) 109,636 (45,798) (188,230)
Net unrealized depreciation of investments
and swap agreements (84,724) (310,411) (52,254) (252,869)
------------ ------------ ------------ ------------
Net loss on investments and swap agreements (94,305) (200,775) (98,052) (441,099)
------------ ------------ ------------ ------------
Net Increase in Net Assets Resulting from Operations $1,343,372 $1,325,699 $344,580 $767,180
============ ============ ============ ============
- --------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
--------------------------------------------
MASSACHUSETTS MICHIGAN MINNESOTA
- --------------------------------------------------------------------------------------------------------
Investment Income
Interest income $1,393,209 $1,998,356 $719,219
------------ ------------ ------------
Expenses (Notes 1 and 5):
Advisory fees 222,561 301,246 114,736
Distribution plan expenses - Class A 65,031 95,281 35,171
Distribution plan expenses - Class B 36,622 20,538 11,815
Shareholder servicing costs 19,021 24,530 9,492
Professional fees 12,585 16,426 7,823
Registration fees 1,584 1,632 461
Custodian fees 6,031 7,249 3,936
Reports to shareholders 3,122 3,879 1,467
Directors/trustees' fees 1,046 1,492 558
Other expenses 12,823 18,674 11,823
------------ ------------ ------------
Total expenses 380,426 490,947 197,282
Less: Expenses waived (99,467) (112,702) (95,559)
Expenses paid indirectly (1,290) (1,383) (1,378)
------------ ------------ ------------
Net expenses 279,669 376,862 100,345
------------ ------------ ------------
Net investment income 1,113,540 1,621,494 618,874
------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investments
and Swap Agreements (Note 4):
Net realized gain (loss) on investments and swap agreements (280,495) 19,726 (110,109)
Net unrealized depreciation of investments
and swap agreements (93,949) (753,444) (12,405)
------------ ------------ ------------
Net loss on investments and swap agreements (374,444) (733,718) (122,514)
------------ ------------ ------------
Net Increase in Net Assets Resulting from Operations $739,096 $887,776 $496,360
============ ============ ============
See notes to financial statements
Statements of Operations
FIRST INVESTORS
Year Ended December 31, 2004
- -----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------------
MISSOURI NEW JERSEY NORTH CAROLINA OHIO
- -----------------------------------------------------------------------------------------------------------------------
Investment Income
Interest income $515,860 $3,406,228 $1,172,725 $1,259,094
------------ ------------ ------------ ------------
Expenses (Notes 1 and 5):
Advisory fees 82,915 521,750 187,801 196,506
Distribution plan expenses - Class A 19,696 157,163 51,245 55,599
Distribution plan expenses - Class B 31,771 67,018 45,421 39,612
Shareholder servicing costs 6,161 35,345 14,767 16,535
Professional fees 7,711 27,214 9,822 11,607
Registration fees 1,016 461 461 461
Custodian fees 2,786 11,140 5,585 5,078
Reports to shareholders 833 5,003 2,263 2,558
Directors/trustees' fees 390 2,559 914 968
Other expenses 11,560 24,874 15,900 12,618
------------ ------------ ------------ ------------
Total expenses 164,839 852,527 334,179 341,542
Less: Expenses waived (73,668) (139,134) (110,951) (114,013)
Expenses paid indirectly (1,027) (2,371) (1,404) (1,342)
------------ ------------ ------------ ------------
Net expenses 90,144 711,022 221,824 226,187
------------ ------------ ------------ ------------
Net investment income 425,716 2,695,206 950,901 1,032,907
------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investments
and Swap Agreements (Note 4):
Net realized loss on investments and swap agreements (61,817) (480,751) (28,263) (61,610)
Net unrealized appreciation (depreciation) of investments
and swap agreements 7,604 (564,678) (173,945) (359,074)
------------ ------------ ------------ ------------
Net loss on investments and swap agreements (54,213) (1,045,429) (202,208) (420,684)
------------ ------------ ------------ ------------
Net Increase in Net Assets Resulting from Operations $371,503 $1,649,777 $748,693 $612,223
============ ============ ============ ============
- --------------------------------------------------------------------------------------------------------
OREGON PENNSYLVANIA VIRGINIA
- --------------------------------------------------------------------------------------------------------
Investment Income
Interest income $1,347,651 $2,348,445 $2,068,505
------------ ------------ ------------
Expenses (Notes 1 and 5):
Advisory fees 217,899 363,256 315,087
Distribution plan expenses - Class A 65,452 112,060 98,406
Distribution plan expenses - Class B 28,725 36,100 26,491
Shareholder servicing costs 21,289 28,334 20,693
Professional fees 9,943 14,423 14,703
Registration fees 1,046 473 461
Custodian fees 6,373 8,360 7,552
Reports to shareholders 3,085 3,949 2,646
Directors/trustees' fees 1,065 1,777 1,562
Other expenses 17,414 18,507 23,040
------------ ------------ ------------
Total expenses 372,291 587,239 510,641
Less: Expenses waived (130,418) (122,242) (110,679)
Expenses paid indirectly (2,474) (2,120) (1,991)
------------ ------------ ------------
Net expenses 239,399 462,877 397,971
------------ ------------ ------------
Net investment income 1,108,252 1,885,568 1,670,534
------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investments
and Swap Agreements (Note 4):
Net realized loss on investments and swap agreements (152,598) (239,114) (166,527)
Net unrealized depreciation of investments
and swap agreements (199,179) (565,122) (469,991)
------------ ------------ ------------
Net loss on investments and swap agreements (351,777) (804,236) (636,518)
------------ ------------ ------------
Net Increase in Net Assets Resulting from Operations $756,475 $1,081,332 $1,034,016
============ ============ ============
See notes to financial statements
Statements of Changes in Net Assets
FIRST INVESTORS
- -----------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT INSURED INTERMEDIATE
MONEY MARKET TAX EXEMPT
----------------------------- ----------------------------
Year Ended December 31 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $76,797 $63,828 $1,396,672 $1,205,112
Net realized gain (loss) on investments
and swap agreements -- -- (42,578) 453,509
Net unrealized appreciation (depreciation) of investments
and swap agreements -- -- (621,532) 322,769
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 76,797 63,828 732,562 1,981,390
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income - Class A (76,797) (63,828) (1,217,150) (1,024,077)
Net investment income - Class B -- -- (153,481) (170,089)
Net realized gains - Class A -- -- -- (371,439)
Net realized gains - Class B -- -- -- (82,394)
------------ ------------ ------------ ------------
Total distributions (76,797) (63,828) (1,370,631) (1,647,999)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 15,526,220 17,639,056 12,510,318 35,524,204
Reinvestment of distributions 75,241 62,440 930,079 1,089,899
Cost of shares redeemed (18,519,020) (19,208,272) (10,485,277) (9,333,508)
------------ ------------ ------------ ------------
(2,917,559) (1,506,776) 2,955,120 27,280,595
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold -- 37,069 1,204,621 6,039,065
Reinvestment of distributions -- -- 108,582 190,967
Cost of shares redeemed (41,197) (37,296) (2,768,408) (1,528,224)
------------ ------------ ------------ ------------
(41,197) (227) (1,455,205) 4,701,808
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions (2,958,756) (1,507,003) 1,499,915 31,982,403
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (2,958,756) (1,507,003) 861,846 32,315,794
Net Assets
Beginning of year 16,966,098 18,473,101 69,782,575 37,466,781
------------ ------------ ------------ ------------
End of year+ $14,007,342 $16,966,098 $70,644,421 $69,782,575
============ ============ ============ ============
+Includes undistributed net investment income of $-- $-- $38,646 $12,605
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 15,526,220 17,639,056 1,932,760 5,466,490
Issued for distributions reinvested 75,241 62,440 144,275 167,657
Redeemed (18,519,020) (19,208,272) (1,626,829) (1,436,243)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding (2,917,559) (1,506,776) 450,206 4,197,904
============ ============ ============ ============
Class B:
Sold -- 37,069 186,548 927,955
Issued for distributions reinvested -- -- 16,809 29,327
Redeemed (41,197) (37,296) (427,443) (234,656)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (41,197) (227) (224,086) 722,626
============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------------------------
INSURED INSURED
TAX EXEMPT TAX EXEMPT II
----------------------------- ----------------------------
Year Ended December 31 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $34,726,429 $36,510,991 $3,206,325 $3,006,555
Net realized gain (loss) on investments
and swap agreements (996,161) 6,557,587 747,721 567,556
Net unrealized appreciation (depreciation) of investments
and swap agreements (12,925,151) (3,669,638) (108,480) 677,089
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 20,805,117 39,398,940 3,845,566 4,251,200
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income - Class A (34,656,091) (36,086,059) (2,730,704) (2,578,652)
Net investment income - Class B (133,406) (170,729) (446,083) (430,820)
Net realized gains - Class A -- (6,673,491) (625,204) (466,638)
Net realized gains - Class B -- (34,695) (123,282) (101,178)
------------ ------------ ------------ ------------
Total distributions (34,789,497) (42,964,974) (3,925,273) (3,577,288)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 10,859,209 10,457,029 21,227,156 26,796,706
Reinvestment of distributions 26,578,691 33,647,224 2,539,297 2,230,827
Cost of shares redeemed (81,302,747) (74,035,870) (20,457,528) (14,026,089)
------------ ------------ ------------ ------------
(43,864,847) (29,931,617) 3,308,925 15,001,444
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 129,257 110,563 2,082,638 8,014,916
Reinvestment of distributions 92,057 160,282 425,505 397,359
Cost of shares redeemed (1,137,768) (1,228,694) (3,435,657) (3,895,784)
------------ ------------ ------------ ------------
(916,454) (957,849) (927,514) 4,516,491
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions (44,781,301) (30,889,466) 2,381,411 19,517,935
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (58,765,681) (34,455,500) 2,301,704 20,191,847
Net Assets
Beginning of year 886,860,352 921,315,852 97,691,589 77,499,742
------------ ------------ ------------ ------------
End of year+ $828,094,671 $886,860,352 $99,993,293 $97,691,589
============ ============ ============ ============
+Includes undistributed net investment income of $253,538 $316,606 $33,639 $4,101
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 1,059,662 998,704 1,378,776 1,741,821
Issued for distributions reinvested 2,593,816 3,221,367 165,270 145,105
Redeemed (7,941,199) (7,089,791) (1,336,511) (915,872)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding (4,287,721) (2,869,720) 207,535 971,054
============ ============ ============ ============
Class B:
Sold 12,677 10,516 134,824 521,653
Issued for distributions reinvested 8,997 15,365 27,698 25,861
Redeemed (111,054) (117,470) (225,431) (255,276)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (89,380) (91,589) (62,909) 292,238
============ ============ ============ ============
See notes to financial statements
Statements of Changes in Net Assets
FIRST INVESTORS
- -----------------------------------------------------------------------------------------------------------------------
MULTI-STATE
INSURED TAX FREE FUND
NEW YORK ----------------------------
INSURED TAX FREE ARIZONA
----------------------------- ----------------------------
Year Ended December 31 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $7,235,620 $7,709,027 $870,885 $937,941
Net realized gain (loss) on investments
and swap agreements (2,148,682) 1,592,997 69,920 152,366
Net unrealized appreciation (depreciation) of investments
and swap agreements (696,617) (1,233,282) (230,690) (10,549)
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 4,390,321 8,068,742 710,115 1,079,758
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income - Class A (7,134,342) (7,276,283) (779,499) (861,399)
Net investment income - Class B (254,270) (296,001) (88,963) (82,595)
Net realized gains - Class A -- (1,523,133) (61,321) (133,299)
Net realized gains - Class B -- (70,723) (8,649) (19,163)
------------ ------------ ------------ ------------
Total distributions (7,388,612) (9,166,140) (938,432) (1,096,456)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 10,685,426 12,857,413 1,256,785 4,053,465
Reinvestment of distributions 5,140,818 6,427,003 510,877 601,481
Cost of shares redeemed (19,928,188) (20,297,927) (5,368,089) (3,077,363)
------------ ------------ ------------ ------------
(4,101,944) (1,013,511) (3,600,427) 1,577,583
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 422,722 1,678,552 359,824 1,129,845
Reinvestment of distributions 210,286 297,352 51,575 59,914
Cost of shares redeemed (1,472,513) (3,622,784) (978,700) (179,751)
------------ ------------ ------------ ------------
(839,505) (1,646,880) (567,301) 1,010,008
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions (4,941,449) (2,660,391) (4,167,728) 2,587,591
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (7,939,740) (3,757,789) (4,396,045) 2,570,893
Net Assets
Beginning of year 193,527,551 197,285,340 24,830,036 22,259,143
------------ ------------ ------------ ------------
End of year+ $185,587,811 $193,527,551 $20,433,991 $24,830,036
============ ============ ============ ============
+Includes undistributed net investment income of $91,533 $244,525 $8,086 $5,663
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 731,828 862,828 90,986 288,149
Issued for distributions reinvested 352,186 431,925 36,922 42,996
Redeemed (1,364,324) (1,369,282) (387,659) (220,856)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding (280,310) (74,529) (259,751) 110,289
============ ============ ============ ============
Class B:
Sold 29,106 112,629 25,997 80,600
Issued for distributions reinvested 14,423 20,004 3,728 4,284
Redeemed (100,817) (244,350) (70,885) (12,892)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (57,288) (111,717) (41,160) 71,992
============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------------
CALIFORNIA COLORADO
----------------------------- ----------------------------
Year Ended December 31 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $1,118,922 $1,108,065 $468,854 $508,582
Net realized gain (loss) on investments
and swap agreements (1,228) 58,308 32,443 (35,920)
Net unrealized appreciation (depreciation) of investments
and swap agreements (29,430) 62,985 (162,016) 97,582
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 1,088,264 1,229,358 339,281 570,244
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income - Class A (1,002,660) (1,002,509) (418,598) (449,173)
Net investment income - Class B (98,056) (99,414) (44,306) (54,060)
Net realized gains - Class A -- (53,523) -- --
Net realized gains - Class B -- (6,971) -- --
------------ ------------ ------------ ------------
Total distributions (1,100,716) (1,162,417) (462,904) (503,233)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 3,327,105 7,226,792 1,506,132 3,709,395
Reinvestment of distributions 565,902 592,600 296,650 284,456
Cost of shares redeemed (4,994,575) (4,142,221) (3,941,044) (2,128,678)
------------ ------------ ------------ ------------
(1,101,568) 3,677,171 (2,138,262) 1,865,173
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 140,274 1,123,616 88,035 838,991
Reinvestment of distributions 40,838 43,940 28,447 37,440
Cost of shares redeemed (635,385) (187,125) (637,145) (539,623)
------------ ------------ ------------ ------------
(454,273) 980,431 (520,663) 336,808
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions (1,555,841) 4,657,602 (2,658,925) 2,201,981
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (1,568,293) 4,724,543 (2,782,548) 2,268,992
Net Assets
Beginning of year 30,488,058 25,763,515 13,633,569 11,364,577
------------ ------------ ------------ ------------
End of year+ $28,919,765 $30,488,058 $10,851,021 $13,633,569
============ ============ ============ ============
+Includes undistributed net investment income of $28,717 $10,511 $15,005 $9,055
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 266,470 577,243 107,998 266,343
Issued for distributions reinvested 45,634 47,529 21,564 20,637
Redeemed (401,382) (331,438) (287,789) (154,871)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding (89,278) 293,334 (158,227) 132,109
============ ============ ============ ============
Class B:
Sold 11,086 89,750 6,444 60,980
Issued for distributions reinvested 3,292 3,522 2,070 2,716
Redeemed (51,661) (14,994) (46,446) (40,073)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (37,283) 78,278 (37,932) 23,623
============ ============ ============ ============
See notes to financial statements
Statements of Changes in Net Assets
FIRST INVESTORS
- -----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------------
CONNECTICUT FLORIDA
----------------------------- ----------------------------
Year Ended December 31 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $1,437,677 $1,421,858 $1,526,474 $1,484,540
Net realized gain (loss) on investments
and swap agreements (9,581) 313,456 109,636 181,051
Net unrealized appreciation (depreciation) of investments
and swap agreements (84,724) (266,655) (310,411) (122,571)
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 1,343,372 1,468,659 1,325,699 1,543,020
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income - Class A (1,246,426) (1,220,789) (1,409,052) (1,376,939)
Net investment income - Class B (172,518) (194,224) (98,983) (92,085)
Net realized gains - Class A -- (263,290) (100,964) (166,162)
Net realized gains - Class B -- (50,363) (8,951) (14,925)
------------ ------------ ------------ ------------
Total distributions (1,418,944) (1,728,666) (1,617,950) (1,650,111)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 4,901,311 5,501,680 4,221,290 6,638,222
Reinvestment of distributions 907,176 1,121,678 861,819 927,590
Cost of shares redeemed (4,858,857) (5,039,029) (5,762,913) (4,573,440)
------------ ------------ ------------ ------------
949,630 1,584,329 (679,804) 2,992,372
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 171,594 802,524 277,972 1,466,260
Reinvestment of distributions 107,188 167,320 46,816 53,553
Cost of shares redeemed (1,241,070) (1,014,091) (422,978) (503,070)
------------ ------------ ------------ ------------
(962,288) (44,247) (98,190) 1,016,743
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions (12,658) 1,540,082 (777,994) 4,009,115
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (88,230) 1,280,075 (1,070,245) 3,902,024
Net Assets
Beginning of year 37,192,858 35,912,783 40,779,873 36,877,849
------------ ------------ ------------ ------------
End of year+ $37,104,628 $37,192,858 $39,709,628 $40,779,873
============ ============ ============ ============
+Includes undistributed net investment income of $31,185 $12,452 $47,407 $28,968
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 365,009 404,653 307,140 478,243
Issued for distributions reinvested 67,574 82,582 63,002 67,067
Redeemed (361,216) (370,866) (420,415) (331,029)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding 71,367 116,369 (50,273) 214,281
============ ============ ============ ============
Class B:
Sold 12,821 58,685 20,240 105,377
Issued for distributions reinvested 7,989 12,331 3,422 3,869
Redeemed (92,697) (74,539) (30,952) (36,599)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (71,887) (3,523) (7,290) 72,647
============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------------
GEORGIA MARYLAND
----------------------------- ----------------------------
Year Ended December 31 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $442,632 $399,934 $1,208,279 $1,225,541
Net realized gain (loss) on investments
and swap agreements (45,798) 93,134 (188,230) 58,735
Net unrealized appreciation (depreciation) of investments
and swap agreements (52,254) (535) (252,869) 91,926
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 344,580 492,533 767,180 1,376,202
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income - Class A (399,998) (341,869) (1,011,003) (1,043,499)
Net investment income - Class B (43,910) (52,193) (162,812) (179,960)
Net realized gains - Class A -- (78,353) -- (47,985)
Net realized gains - Class B -- (12,793) -- (10,743)
------------ ------------ ------------ ------------
Total distributions (443,908) (485,208) (1,173,815) (1,282,187)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 1,678,395 1,866,270 3,855,660 3,235,918
Reinvestment of distributions 289,352 329,385 562,666 573,720
Cost of shares redeemed (697,758) (898,376) (3,913,103) (5,145,095)
------------ ------------ ------------ ------------
1,269,989 1,297,279 505,223 (1,335,457)
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 175,836 346,488 84,479 1,071,127
Reinvestment of distributions 25,438 41,336 115,905 133,608
Cost of shares redeemed (458,942) (350,607) (979,473) (1,347,477)
------------ ------------ ------------ ------------
(257,668) 37,217 (779,089) (142,742)
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions 1,012,321 1,334,496 (273,866) (1,478,199)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 912,993 1,341,821 (680,501) (1,384,184)
Net Assets
Beginning of year 11,197,060 9,855,239 32,967,602 34,351,786
------------ ------------ ------------ ------------
End of year+ $12,110,053 $11,197,060 $32,287,101 $32,967,602
============ ============ ============ ============
+Includes undistributed net investment income of $6,519 $7,795 $49,947 $15,483
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 122,182 134,900 274,901 228,325
Issued for distributions reinvested 21,159 23,733 40,140 40,522
Redeemed (51,195) (64,079) (278,145) (368,412)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding 92,146 94,554 36,896 (99,565)
============ ============ ============ ============
Class B:
Sold 12,893 24,966 5,975 75,779
Issued for distributions reinvested 1,862 2,981 8,260 9,431
Redeemed (33,395) (25,611) (69,576) (95,528)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (18,640) 2,336 (55,341) (10,318)
============ ============ ============ ============
See notes to financial statements
Statements of Changes in Net Assets
FIRST INVESTORS
- -----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------------
MASSACHUSETTS MICHIGAN
----------------------------- ----------------------------
Year Ended December 31 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $1,113,540 $1,154,446 $1,621,494 $1,780,075
Net realized gain (loss) on investments
and swap agreements (280,495) 391,788 19,726 179,754
Net unrealized appreciation (depreciation) of investments
and swap agreements (93,949) (154,325) (753,444) 45,495
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 739,096 1,391,909 887,776 2,005,324
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income - Class A (1,003,042) (1,020,134) (1,564,872) (1,743,001)
Net investment income - Class B (112,002) (129,082) (69,045) (56,187)
Net realized gains - Class A -- (343,315) (18,653) (173,185)
Net realized gains - Class B -- (51,586) (1,187) (7,021)
------------ ------------ ------------ ------------
Total distributions (1,115,044) (1,544,117) (1,653,757) (1,979,394)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 2,649,815 2,226,047 2,334,422 3,784,383
Reinvestment of distributions 838,840 1,150,977 1,047,597 1,241,976
Cost of shares redeemed (3,647,128) (3,112,985) (8,345,749) (5,458,503)
------------ ------------ ------------ ------------
(158,473) 264,039 (4,963,730) (432,144)
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 217,588 1,268,406 1,019,288 239,462
Reinvestment of distributions 97,412 156,454 59,859 51,793
Cost of shares redeemed (523,826) (1,383,315) (449,793) (363,439)
------------ ------------ ------------ ------------
(208,826) 41,545 629,354 (72,184)
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions (367,299) 305,584 (4,334,376) (504,328)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (743,247) 153,376 (5,100,357) (478,398)
Net Assets
Beginning of year 29,695,050 29,541,674 43,270,905 43,749,303
------------ ------------ ------------ ------------
End of year+ $28,951,803 $29,695,050 $38,170,548 $43,270,905
============ ============ ============ ============
+Includes undistributed net investment income of $6,751 $8,255 $10,303 $22,726
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 215,998 180,730 182,111 290,279
Issued for distributions reinvested 69,517 93,549 81,909 95,237
Redeemed (301,961) (252,756) (648,634) (416,854)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding (16,446) 21,523 (384,614) (31,338)
============ ============ ============ ============
Class B:
Sold 18,099 102,998 81,208 18,396
Issued for distributions reinvested 8,064 12,714 4,695 3,978
Redeemed (43,560) (112,541) (35,114) (27,835)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (17,397) 3,171 50,789 (5,461)
============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------------
MINNESOTA MISSOURI
----------------------------- ----------------------------
Year Ended December 31 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $618,874 $572,411 $425,716 $380,007
Net realized gain (loss) on investments
and swap agreements (110,109) (38,460) (61,817) 15,735
Net unrealized appreciation (depreciation) of investments
and swap agreements (12,405) 124,888 7,604 120,432
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 496,360 658,839 371,503 516,174
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income - Class A (577,488) (527,996) (317,027) (289,895)
Net investment income - Class B (39,057) (34,647) (102,848) (83,235)
Net realized gains - Class A -- -- -- (7,178)
Net realized gains - Class B -- -- -- (2,734)
------------ ------------ ------------ ------------
Total distributions (616,545) (562,643) (419,875) (383,042)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 1,515,312 1,826,248 680,322 1,908,687
Reinvestment of distributions 460,890 435,868 172,794 156,448
Cost of shares redeemed (1,423,828) (763,021) (1,135,071) (661,363)
------------ ------------ ------------ ------------
552,374 1,499,095 (281,955) 1,403,772
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 226,775 483,097 254,474 974,860
Reinvestment of distributions 29,562 26,281 75,436 65,066
Cost of shares redeemed (321,605) (142,542) (152,376) (63,210)
------------ ------------ ------------ ------------
(65,268) 366,836 177,534 976,716
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions 487,106 1,865,931 (104,421) 2,380,488
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 366,921 1,962,127 (152,793) 2,513,620
Net Assets
Beginning of year 15,042,156 13,080,029 11,265,628 8,752,008
------------ ------------ ------------ ------------
End of year+ $15,409,077 $15,042,156 $11,112,835 $11,265,628
============ ============ ============ ============
+Includes undistributed net investment income of $15,374 $13,045 $13,036 $7,195
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 125,475 150,655 49,594 139,259
Issued for distributions reinvested 38,275 35,994 12,616 11,401
Redeemed (118,957) (63,499) (83,123) (48,312)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding 44,793 123,150 (20,913) 102,348
============ ============ ============ ============
Class B:
Sold 18,824 39,870 18,386 70,976
Issued for distributions reinvested 2,451 2,169 5,507 4,741
Redeemed (26,566) (11,887) (11,099) (4,623)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (5,291) 30,152 12,794 71,094
============ ============ ============ ============
See notes to financial statements
Statements of Changes in Net Assets
FIRST INVESTORS
- -----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------------
NEW JERSEY NORTH CAROLINA
----------------------------- ----------------------------
Year Ended December 31 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $2,695,206 $2,698,733 $950,901 $893,544
Net realized gain (loss) on investments
and swap agreements (480,751) 610,409 (28,263) 186,424
Net unrealized appreciation (depreciation) of investments
and swap agreements (564,678) (420,147) (173,945) 65,932
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 1,649,777 2,888,995 748,693 1,145,900
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income - Class A (2,461,177) (2,489,572) (793,354) (755,329)
Net investment income - Class B (207,772) (221,919) (143,369) (141,646)
Net realized gains - Class A -- (549,243) -- (119,281)
Net realized gains - Class B -- (61,244) -- (27,909)
------------ ------------ ------------ ------------
Total distributions (2,668,949) (3,321,978) (936,723) (1,044,165)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 6,964,472 6,708,062 3,405,548 3,454,585
Reinvestment of distributions 1,658,007 2,106,255 564,125 645,667
Cost of shares redeemed (7,871,721) (10,151,256) (1,985,084) (3,075,075)
------------ ------------ ------------ ------------
750,758 (1,336,939) 1,984,589 1,025,177
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 516,658 1,761,616 596,971 1,249,786
Reinvestment of distributions 153,682 215,404 113,630 138,567
Cost of shares redeemed (1,126,781) (1,034,002) (879,663) (566,418)
------------ ------------ ------------ ------------
(456,441) 943,018 (169,062) 821,935
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions 294,317 (393,921) 1,815,527 1,847,112
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (724,855) (826,904) 1,627,497 1,948,847
Net Assets
Beginning of year 70,474,038 71,300,942 24,177,845 22,228,998
------------ ------------ ------------ ------------
End of year+ $69,749,183 $70,474,038 $25,805,342 $24,177,845
============ ============ ============ ============
+Includes undistributed net investment income of $39,497 $13,240 $19,958 $5,780
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 529,174 501,596 252,131 254,338
Issued for distributions reinvested 126,513 157,813 41,877 47,378
Redeemed (600,459) (759,893) (147,365) (225,785)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding 55,228 (100,484) 146,643 75,931
============ ============ ============ ============
Class B:
Sold 39,340 131,962 43,587 91,663
Issued for distributions reinvested 11,758 16,180 8,432 10,165
Redeemed (86,001) (77,848) (64,966) (41,544)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (34,903) 70,294 (12,947) 60,284
============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------------
OHIO OREGON
----------------------------- ----------------------------
Year Ended December 31 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $1,032,907 $1,060,934 $1,108,252 $1,052,708
Net realized gain (loss) on investments
and swap agreements (61,610) (8,285) (152,598) (15,454)
Net unrealized appreciation (depreciation) of investments
and swap agreements (359,074) 150,260 (199,179) 182,459
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 612,223 1,202,909 756,475 1,219,713
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income - Class A (890,551) (937,879) (1,013,524) (948,033)
Net investment income - Class B (128,513) (117,299) (90,415) (102,136)
Net realized gains - Class A -- -- -- --
Net realized gains - Class B -- -- -- --
------------ ------------ ------------ ------------
Total distributions (1,019,064) (1,055,178) (1,103,939) (1,050,169)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 1,568,616 3,743,644 5,005,781 5,706,209
Reinvestment of distributions 642,361 671,710 805,670 744,139
Cost of shares redeemed (2,914,221) (4,245,078) (4,599,232) (3,463,861)
------------ ------------ ------------ ------------
(703,244) 170,276 1,212,219 2,986,487
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 661,809 1,858,660 258,785 876,326
Reinvestment of distributions 94,024 91,475 82,309 91,159
Cost of shares redeemed (1,314,596) (277,169) (646,264) (1,090,750)
------------ ------------ ------------ ------------
(558,763) 1,672,966 (305,170) (123,265)
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions (1,262,007) 1,843,242 907,049 2,863,222
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (1,668,848) 1,990,973 559,585 3,032,766
Net Assets
Beginning of year 27,336,300 25,345,327 28,765,918 25,733,152
------------ ------------ ------------ ------------
End of year+ $25,667,452 $27,336,300 $29,325,503 $28,765,918
============ ============ ============ ============
+Includes undistributed net investment income of $25,428 $11,585 $6,881 $2,568
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 123,369 289,942 378,817 430,607
Issued for distributions reinvested 50,404 52,123 61,138 55,996
Redeemed (228,169) (332,753) (349,432) (261,724)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding (54,396) 9,312 90,523 224,879
============ ============ ============ ============
Class B:
Sold 51,402 145,068 19,484 65,950
Issued for distributions reinvested 7,366 7,096 6,255 6,867
Redeemed (104,613) (21,621) (49,232) (82,901)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (45,845) 130,543 (23,493) (10,084)
============ ============ ============ ============
See notes to financial statements
Statements of Changes in Net Assets
FIRST INVESTORS
- -----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------------
PENNSYLVANIA VIRGINIA
----------------------------- ----------------------------
Year Ended December 31 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $1,885,568 $1,886,390 $1,670,534 $1,764,411
Net realized gain (loss) on investments
and swap agreements (239,114) 180,082 (166,527) 270,011
Net unrealized depreciation of investments
and swap agreements (565,122) (144,725) (469,991) (53,343)
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 1,081,332 1,921,747 1,034,016 1,981,079
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income - Class A (1,773,253) (1,769,149) (1,596,737) (1,644,491)
Net investment income - Class B (113,727) (103,211) (88,681) (87,217)
Net realized gains - Class A -- (167,287) (11,293) (253,174)
Net realized gains - Class B -- (13,107) (754) (17,336)
------------ ------------ ------------ ------------
Total distributions (1,886,980) (2,052,754) (1,697,465) (2,002,218)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 5,427,673 4,337,932 3,541,235 4,298,852
Reinvestment of distributions 1,068,162 1,187,579 821,567 968,177
Cost of shares redeemed (4,940,784) (5,360,984) (9,556,243) (3,924,861)
------------ ------------ ------------ ------------
1,555,051 164,527 (5,193,441) 1,342,168
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 440,041 717,677 169,007 632,395
Reinvestment of distributions 71,681 73,763 66,124 79,094
Cost of shares redeemed (527,938) (496,640) (654,101) (217,664)
------------ ------------ ------------ ------------
(16,216) 294,800 (418,970) 493,825
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions 1,538,835 459,327 (5,612,411) 1,835,993
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 733,187 328,320 (6,275,860) 1,814,854
Net Assets
Beginning of year 48,688,735 48,360,415 44,608,957 42,794,103
------------ ------------ ------------ ------------
End of year+ $49,421,922 $48,688,735 $38,333,097 $44,608,957
============ ============ ============ ============
+Includes undistributed net investment income of $33,931 $35,343 $39,797 $54,681
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 408,428 318,712 265,085 318,211
Issued for distributions reinvested 80,182 87,678 61,717 71,552
Redeemed (371,966) (396,237) (720,475) (290,347)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding 116,644 10,153 (393,673) 99,416
============ ============ ============ ============
Class B:
Sold 32,574 53,087 12,760 46,689
Issued for distributions reinvested 5,386 5,453 4,983 5,861
Redeemed (39,867) (37,040) (49,305) (16,277)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (1,907) 21,500 (31,562) 36,273
============ ============ ============ ============
See notes to financial statements
Notes to Financial Statements
December 31, 2004
1. Significant Accounting Policies--First Investors Tax-Exempt Money Market
Fund, Inc. ("Tax-Exempt Money Market Fund"), First Investors Insured
Intermediate Tax Exempt Fund ("Insured Intermediate Fund"), a series of
First Investors Series Fund ("Series Fund"), First Investors Insured Tax
Exempt Fund, Inc. ("Insured Tax Exempt Fund"), First Investors Insured Tax
Exempt Fund II ("Insured Tax Exempt II Fund"), a series of Executive
Investors Trust, First Investors New York Insured Tax Free Fund, Inc. ("New
York Insured Fund") and the Arizona, California, Colorado, Connecticut,
Florida, Georgia, Maryland, Massachusetts, Michigan, Minnesota, Missouri,
New Jersey, North Carolina, Ohio, Oregon, Pennsylvania and Virginia Funds,
each a series of First Investors Multi-State Insured Tax Free Fund
("Multi-State Insured Fund"), (collectively, the "Funds"), 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. Series Fund offers four additional
series which are not included in this report. The investment objective of
each Fund is as follows:
Tax-Exempt Money Market Fund seeks to earn a high rate of current income
that is exempt from federal income tax, including the Alternative Minimum
Tax ("AMT"), consistent with the preservation of capital and maintenance of
liquidity.
Insured Intermediate Fund seeks a high level of interest income that is
exempt from federal income tax and is not a tax preference item for
purposes of the AMT.
Insured Tax Exempt Fund seeks a high level of interest income that is
exempt from federal income tax and is not a tax preference item for
purposes of the AMT.
Insured Tax Exempt II Fund seeks a high level of interest income that is
exempt from federal income tax and is not a tax preference item for
purposes of the AMT.
New York Insured Fund and Multi-State Insured Fund seek a high level of
interest income that is exempt from both federal and state income tax for
individual residents of a particular state and is not a tax preference item
for purposes of the AMT.
A. Security Valuation--The Tax-Exempt Money Market Fund values its
portfolio securities in accordance with the amortized cost method of
valuation under Rule 2a-7 of the 1940 Act. Amortized cost is an
approximation of market value of an instrument, whereby the difference
between its acquisition cost and 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.
The municipal securities in which the other Funds invest are traded
primarily in the over-the-counter markets. Such securities are valued daily
based upon valuations provided by a pricing service approved by the
applicable Fund's Board of Directors/Trustees (the "Board"). The pricing
service considers security type, rating, market condition and yield data,
as well as market quotations and prices provided by market makers. The swap
agreements held by the Funds, other than the Tax-Exempt Money Market Fund,
are valued by a pricing service. The pricing service determines prices by
calculating the market rate or new par swap rate. The difference between
the original fixed rate and the new par swap rate is the basis for
calculating the swap's value. If prices are not available or determined to
be unreliable, the securities will be valued at fair value as determined in
good faith pursuant to procedures adopted by the Board. "When-issued
securities" are reflected in the assets of the Funds as of the date the
securities are purchased.
Under normal circumstances, each of the Funds, other than the Tax-Exempt
Money Market Fund, invests at least 80% of its assets in municipal bonds
and municipal securities that are insured as to payment of principal and
interest under insurance policies written by independent insurance
companies. When an issuer has not provided insurance, the Fund will obtain
insurance from AMBAC Indemnity Corporation. The Funds may retain any
insured municipal bond which is in default in the payment of principal or
interest until the default has been cured, or the principal and interest
outstanding are paid by an insurer or the issuer of any letter of credit or
other guarantee supporting such municipal bond. In such case, it is the
Funds' policy to value the defaulted bond daily based upon the value of a
comparable bond which is not in default. In selecting a comparable bond,
the Funds will consider security type, rating, market condition and yield.
B. Federal Income Taxes--It is the policy of the Funds to continue to
qualify as regulated investment companies, which can distribute tax exempt
dividends, by complying with the provisions available to regulated
investment companies, as defined in the Internal Revenue Code. The Funds
make distributions of income and net realized capital gains (in excess of
any available capital loss carryovers) sufficient to relieve them from all,
or substantially all, federal income taxes.
Notes to Financial Statements (continued)
December 31, 2004
At December 31, 2004, capital loss carryovers were as follows:
Year Capital Loss Carryovers Expire
--------------------------------------------------------------------
Fund Total 2007 2008 2011 2012
- ---- ------------ ------------ ------------ ------------ ------------
>
Insured Intermediate $ 42,499 $ -- $ -- $ -- $ 42,499
Insured Tax Exempt 1,146,042 -- -- -- 1,146,042
New York Insured 2,045,952 -- -- -- 2,045,952
Colorado 3,477 -- -- 3,477 --
Connecticut 9,581 -- -- -- 9,581
Georgia 45,798 -- -- -- 45,798
Maryland 188,230 -- -- -- 188,230
Massachusetts 280,495 -- -- -- 280,495
Minnesota 155,389 6,201 619 38,460 110,109
Missouri 61,817 -- -- -- 61,817
New Jersey 480,751 -- -- -- 480,751
North Carolina 28,263 -- -- -- 28,263
Ohio 69,895 -- -- 8,285 61,610
Oregon 192,296 1,814 -- 37,884 152,598
Pennsylvania 239,114 -- -- -- 239,114
Virginia 178,307 -- -- -- 178,307
C. Distributions to Shareholders--The Tax-Exempt Money Market 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 the other Funds are 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
capital loss carryforwards, deferral of wash sales and post-October losses.
D. Expense Allocation/Class Allocation--Direct expenses attributable to a
Fund are charged to and paid from the assets of that Fund. General
expenses of Multi-State Insured Fund and Series Fund are allocated among
and charged to the assets of each Fund in the series on a fair and
equitable basis, which may be based on the relative assets of each Fund or
the nature of the services performed and relative applicability to each
Fund.
E. Security Transactions and Investment Income--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 amortized cost basis for
the Tax-Exempt
Money Market Fund and on the identified cost basis for the other Funds for
both financial statement and federal income tax purposes. Interest income
is earned from settlement date and recorded on the accrual basis. Premiums
and discounts on securities are amortized using the interest method.
Estimated expenses are accrued daily. For the year ended December 31, 2004,
The Bank of New York, custodian for the Funds, has provided credits in the
amount of $61,672 against custodian charges based on the uninvested cash
balances of the Funds. The Funds also reduced expenses through brokerage
service arrangements. For the year ended December 31, 2004, the Funds'
expenses were reduced by $4,800 under these arrangements.
F. Derivatives--The Funds, other than the Tax-Exempt Money Market Fund, may
invest in derivatives such as inverse floating rate securities ("inverse
floaters") and interest rate swap agreements ("swaps") for the purpose of
managing their exposure to interest rate risk. Inverse floaters are
securities on which the rate of interest varies inversely with interest
rates on other securities or the value of an index. For example, an inverse
floater may pay interest at a rate that increases as a specified interest
rate index decreases but decreases as that index increases. The secondary
market for inverse floaters may be limited and they may be illiquid. The
market values of such securities generally are more volatile than the
market values of ordinary fixed rate obligations. The interest rates on
inverse floaters may be significantly reduced, even to zero, if interest
rates rise. Interest rate swap transactions are agreements between two
parties to exchange interest payments on a designated amount of two
different securities for a designated period of time. For example, two
parties may agree to exchange interest payments on variable and fixed rate
instruments. The Funds may enter into interest rate swap transactions to
preserve a return or spread on a particular investment or portion of its
bond portfolio. Swaps are marked-to-market daily based on valuations
provided by a pricing service and changes in value, if any, are recorded as
unrealized appreciation or depreciation in the Statements of Operations.
Gains or losses are realized upon early termination of the swap agreements.
Risks may exceed the amounts shown in the Statements of Assets and
Liabilities. These risks include failure of the counterparty to perform
under the contract's terms and the possible lack of liquidity with respect
to the swap agreements. The swap agreements open as of December 31, 2004,
are presented following each Fund's Portfolio of Investments.
G. 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)
December 31, 2004
2. Capital--Tax-Exempt Money Market Fund sells 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 First Investors Corporation as underwriter of
the Fund. 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
5. Class B shares are sold without an initial sales charge, but are
generally subject to a contingent deferred sales charge which declines in
steps from 4% to 0% over a six-year period. Class B shares automatically
convert into Class A shares after eight years. Realized and unrealized
gains or losses, investment income and expenses (other than distribution
plan fees) are allocated daily to each class of shares based upon the
relative proportion of net assets of each class. Of the 1,000,000,000 $.01
par value shares originally authorized, Tax-Exempt Money Market Fund has
designated 500,000,000 shares as Class A and 500,000,000 shares as Class B.
Of the 500,000,000 $1.00 par value shares originally authorized, Insured
Tax Exempt Fund has designated 300,000,000 shares as Class A and
200,000,000 shares as Class B. Of the 1,000,000,000 $.01 par value shares
originally authorized, New York Insured Fund has designated 500,000,000
shares as Class A and 500,000,000 shares as Class B. Executive Investors
Trust, Multi-State Insured Fund and Series Fund have established an
unlimited number of no par value shares of beneficial interest for both
Class A and Class B shares.
3. Concentration of Credit Risk--The Funds invest in debt instruments of
municipal issuers whose ability to meet their obligations may be affected
by economic developments in a state, industry or region.
4. Security Transactions--For the year ended December 31, 2004, purchases
and sales of municipal securities, other than short-term municipal notes
and swap agreements, were as follows:
Cost of Proceeds
Fund Purchases from Sales
- ---- ------------ ------------
Insured Intermediate $ 70,960,964 $ 70,709,146
Insured Tax Exempt 231,000,254 275,013,169
Insured Tax Exempt II 114,692,999 108,253,283
New York Insured 56,485,780 54,792,156
Arizona 3,291,255 7,453,909
California 8,730,995 10,332,974
Colorado 809,496 3,356,480
Connecticut 16,574,829 16,312,133
Florida 9,055,971 7,800,752
Georgia 4,726,175 3,554,878
Maryland 4,970,582 6,533,970
Massachusetts 8,910,936 8,285,684
Michigan 9,237,447 13,415,133
Minnesota 3,893,561 2,691,967
Missouri 797,883 957,235
New Jersey 19,274,215 20,031,913
North Carolina 17,628,311 14,391,569
Ohio 6,577,013 6,233,649
Oregon 6,217,783 4,205,091
Pennsylvania 13,448,117 11,316,462
Virginia 9,358,212 12,749,839
Notes to Financial Statements (continued)
December 31, 2004
At December 31, 2004, aggregate cost and net unrealized appreciation of
securities, excluding swap agreements, for federal income tax purposes were
as follows:
Gross Gross Net
Aggregate Unrealized Unrealized Unrealized
Fund Cost Appreciation Depreciation Appreciation
- ---- ------------ ------------ ------------ ------------
Insured Intermediate $ 68,679,239 $ 1,209,035 $27,006 $ 1,182,029
Insured Tax Exempt 728,866,565 92,175,964 42,007 92,133,957
Insured Tax Exempt II 100,430,591 4,486,083 14,276 4,471,807
New York Insured 169,055,351 15,207,324 5,362 15,201,962
Arizona 18,409,944 1,534,145 -- 1,534,145
California 26,076,004 2,534,046 -- 2,534,046
Colorado 9,918,084 775,502 -- 775,502
Connecticut 34,285,827 2,268,574 6,456 2,262,118
Florida 36,503,150 2,795,279 2,260 2,793,019
Georgia 10,994,363 821,634 162 821,472
Maryland 29,651,544 2,278,404 -- 2,278,404
Massachusetts 26,233,091 2,382,142 2,639 2,379,503
Michigan 34,475,819 3,475,512 -- 3,475,512
Minnesota 14,081,268 1,040,820 -- 1,040,820
Missouri 10,190,592 731,096 -- 731,096
New Jersey 62,413,251 5,367,397 -- 5,367,397
North Carolina 23,829,456 1,583,470 -- 1,583,470
Ohio 23,452,888 2,056,685 1,735 2,054,950
Oregon 27,171,780 1,939,607 6,294 1,933,313
Pennsylvania 44,773,897 4,130,847 -- 4,130,847
Virginia 34,790,234 2,805,961 -- 2,805,961
5. 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"), their underwriter, First Investors Corporation ("FIC") and /or
their transfer agent, Administrative Data Management Corp. ("ADM").
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 year
ended December 31, 2004, total directors/trustees fees accrued by the Funds
amounted to $64,128.
The Investment Advisory Agreements provide as compensation to FIMCO for
each Fund, other than the Tax-Exempt Money Market Fund, Insured
Intermediate Fund and Insured Tax Exempt II Fund, an annual fee, payable
monthly, at the rate of .75% on the first $250 million of the average daily
net assets of each Fund, declining by
..03% on each $250 million thereafter, down to .66% on average daily net
assets over $750 million. The annual fee for the Tax-Exempt Money Market
Fund and Insured Intermediate Fund is payable monthly, at the rate of .50%
and .60%, respectively, of each Fund's average daily net assets. The annual
fee for Insured Tax Exempt II Fund is payable monthly, at the rate of 1% on
the first $200 million of the average daily net assets of the Fund, .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.
For the year ended December 31, 2004, FIMCO has voluntarily waived advisory
fees in excess of .61% for Insured Tax Exempt Fund and .60% for New York
Insured Fund. In addition, FIMCO has voluntarily waived advisory fees to
limit each of the other Fund's overall expense ratio on Class A and Class B
shares as follows: .70% on Class A and 1.45% on Class B for Tax-Exempt
Money Market; .95% on Class A and 1.70% on Class B for Insured Intermediate
and New Jersey; 1.00% on Class A and 1.75% on Class B for Insured Tax
Exempt II; .75% on Class A and 1.50% on Class B for Arizona, North
Carolina, Ohio and Oregon; .85% on Class A and 1.60% on Class B for
California, Connecticut, Maryland and Massachusetts; .60% on Class A and
1.35% on Class B for Colorado, Georgia, Minnesota and Missouri; and .90% on
Class A and 1.65% on Class B for Florida, Michigan, Pennsylvania and
Virginia. For the year ended December 31, 2004, advisory fees accrued to
FIMCO by the Funds were $13,172,496 of which $3,833,643 was waived as noted
above.
For the year ended December 31, 2004, FIC, as underwriter, received
$2,238,299 in commissions from the sale of shares of the Funds after
allowing $687,172 to other dealers. Shareholder servicing costs included
$933,815 in transfer agent fees accrued to ADM.
Pursuant to Distribution Plans adopted under Rule 12b-1 of the 1940 Act,
each Fund, other than the Tax-Exempt Money Market 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
Tax-Exempt Money Market Fund, is authorized to pay FIC 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 year ended December 31, 2004, the fees
paid under the distribution plans, other than the Tax-Exempt Money Market
Fund, were limited to .27% on Class A and 1.00% on Class B for the Insured
Tax Exempt Fund and .25% on Class A and 1.00% on Class B for each of the
remaining Funds. The distribution fees paid by Tax-Exempt Money Market Fund
were limited to. 75% on Class B shares. For the year ended December 31,
2004, total distribution plan fees accrued to FIC by the Funds amounted to
$5,222,856.
Notes to Financial Statements (continued)
December 31, 2004
6. Tax Components of Capital and Distributions to Shareholders--The tax
character of distributions declared for the years ended December 31, 2004
and 2003 were as follows:
Distributions Declared in 2004 from: Distributions Declared in 2003 from:
------------------------------------- -------------------------------------
Long-Term Long-Term
Tax-Exempt Ordinary Capital Tax-Exempt Ordinary Capital
Fund Income Income Gain Total Income Income Gain Total
- ---- ----------- -------- ---------- ----------- ----------- -------- ---------- -----------
Intermediate $ 1,370,631 $ -- $ -- $ 1,370,631 $ 1,194,166 $ 57,251 $ 396,582 $ 1,647,999
Tax Exempt 34,789,497 -- -- 34,789,497 36,256,788 966,475 5,741,711 42,964,974
Tax Exempt II 3,176,787 -- 748,486 3,925,273 3,009,472 234,940 332,876 3,577,288
New York Insured 7,388,612 -- -- 7,388,612 7,572,284 -- 1,593,856 9,166,140
Arizona 868,462 -- 69,970 938,432 943,994 -- 152,462 1,096,456
California 1,100,716 -- -- 1,100,716 1,101,923 -- 60,494 1,162,417
Colorado 462,904 -- -- 462,904 503,233 -- -- 503,233
Connecticut 1,418,944 -- -- 1,418,944 1,415,013 21,528 292,125 1,728,666
Florida 1,508,035 -- 109,915 1,617,950 1,469,024 -- 181,087 1,650,111
Georgia 443,908 -- -- 443,908 394,062 -- 91,146 485,208
Maryland 1,173,815 -- -- 1,173,815 1,223,459 -- 58,728 1,282,187
Massachusetts 1,115,044 -- -- 1,115,044 1,149,216 -- 394,901 1,544,117
Michigan 1,633,917 -- 19,840 1,653,757 1,799,188 81,428 98,778 1,979,394
Minnesota 616,545 -- -- 616,545 562,643 -- -- 562,643
Missouri 419,875 -- -- 419,875 373,130 -- 9,912 383,042
New Jersey 2,668,949 -- -- 2,668,949 2,711,491 4,316 606,171 3,321,978
North Carolina 936,723 -- -- 936,723 896,975 -- 147,190 1,044,165
Ohio 1,019,064 -- -- 1,019,064 1,055,178 -- -- 1,055,178
Oregon 1,103,939 -- -- 1,103,939 1,050,169 -- -- 1,050,169
Pennsylvania 1,886,980 -- -- 1,886,980 1,872,360 11,362 169,032 2,052,754
Virginia 1,685,418 -- 12,047 1,697,465 1,731,708 22,670 247,840 2,002,218
As of December 31, 2004, the components of distributable earnings on a tax
basis were as follows:
Undistributed
Undistributed Undistributed Capital Gains
Tax-Exempt Taxable or Capital Total
Ordinary Ordinary (Loss) Unrealized Distributable
Fund Income Income Carryover Appreciation Earnings
- ---- -------- -------- --------- ------------ -------------
Insured Intermediate $38,646 $ -- $ (42,578)* $ 1,182,029 $ 1,178,097
Insured Tax Exempt (4,157) 257,695 (1,146,042) 91,513,618 90,621,114
Insured Tax Exempt II 33,445 194 -- 4,405,862 4,439,501
New York Insured 82,187 9,346 (2,148,682)* 14,667,650 12,610,501
Arizona 8,010 76 -- 1,540,899 1,548,985
California 19,494 9,223 (1,228)* 2,486,754 2,514,243
Colorado 14,318 687 (3,477) 778,879 790,407
Connecticut 29,935 1,250 (9,581) 2,237,118 2,258,722
Florida 40,255 7,152 -- 2,730,864 2,778,271
Georgia 5,936 583 (45,798) 806,609 767,330
Maryland 38,509 11,438 (188,230) 2,168,149 2,029,866
Massachusetts 1,438 5,313 (280,495) 2,386,931 2,113,187
Michigan 1,739 8,564 -- 3,489,019 3,499,322
Minnesota 12,421 2,953 (155,389) 1,040,820 900,805
Missouri 12,524 512 (61,817) 716,232 667,451
New Jersey 35,761 3,736 (480,751) 5,257,949 4,816,695
North Carolina 17,615 2,343 (28,263) 1,592,250 1,583,945
Ohio 24,810 618 (69,539) 2,063,729 2,019,618
Oregon 6,881 -- (192,296) 1,889,804 1,704,389
Pennsylvania 13,035 20,896 (239,114) 4,147,055 3,941,872
Virginia 38,585 1,212 (178,307) 2,740,022 2,601,512
* Includes post-October losses of $79 for Insured Intermediate Tax Exempt
Fund, $102,730 for New York Insured Tax Free Fund and $1,228 for
California Fund.
For the year ended December 31, 2004, the following reclassifications were
made to reflect permanent differences between book and tax reporting:
Accumulated
Capital Net Realized
Fund Paid In Gains
- ---- ------- ------------
Insured Tax Exempt II $ (185) $ 185
Arizona (49) 49
Florida (279) 279
Michigan (114) 114
Virginia (495) 495
Financial Highlights
FIRST INVESTORS
The following table sets forth the per share operating data for a share
outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
- ---------------------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
--------------------------------------------------------------------------------------------------------------
Less Distributions
Investment Operations from
------------------------------------- ----------------------
Net Asset Net Realized
Value, Net and Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized Total
of Year Income Investments Operations Income Gain Distributions
- ---------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT MONEY MARKET FUND
- ----------------------------
Class A
- -------
2000 $ 1.00 $.034 -- $ .034 $.034 -- .034
2001 1.00 .022 -- .022 .022 -- .022
2002 1.00 .008 -- .008 .008 -- .008
2003 1.00 .003 -- .003 .003 -- .003
2004 1.00 .001 -- .001 .001 -- .001
Class B
- -------
2000 1.00 .026 -- .026 .026 -- .026
2001 1.00 .014 -- .014 .014 -- .014
2002 1.00 .001 -- .001 .001 -- .001
2003 1.00 -- -- -- -- -- --
2004 1.00 -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
INSURED INTERMEDIATE TAX EXEMPT FUND
- ------------------------------------
Class A
- -------
2000 $ 5.81 $.254 $ .319 $ .573 $.252 $.031 $.283
2001 6.10 .243 .049 .292 .245 .137 .382
2002 6.01 .208 .543 .751 .208 .103 .311
2003 6.45 .150 .092 .242 .149 .043 .192
2004 6.50 .134 (.052) .082 .132 -- .132
Class B
- -------
2000 5.82 .208 .315 .523 .202 .031 .233
2001 6.11 .195 .050 .245 .198 .137 .335
2002 6.02 .159 .544 .703 .160 .103 .263
2003 6.46 .101 .093 .194 .101 .043 .144
2004 6.51 .086 (.052) .034 .084 -- .084
- ---------------------------------------------------------------------------------------------------------------------------
INSURED TAX EXEMPT FUND
- -----------------------
Class A
- -------
2000 $ 9.71 $.468 $ .656 $1.124 $.504 $ -- $.504
2001 10.33 .460 (.099) .361 .470 .071 .541
2002 10.15 .446 .560 1.006 .452 .244 .696
2003 10.46 .425 .037 .462 .422 .080 .502
2004 10.42 .418 (.169) .249 .419 -- .419
Class B
- -------
2000 9.71 .395 .657 1.052 .432 -- .432
2001 10.33 .385 (.106) .279 .398 .071 .469
2002 10.14 .370 .564 .934 .380 .244 .624
2003 10.45 .344 .036 .380 .350 .080 .430
2004 10.40 .336 (.159) .177 .347 -- .347
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
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 Asset -------------------- ----------------------
Value, Net Assets Net Net Portfolio
End of Total End of Period Investment Investment Turnover
Year Return* (in millions) Expenses Income Expenses Income (Loss) Rate
- ---------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT MONEY MARKET FUND
- ----------------------------
Class A
- -------
2000 $ 1.00 3.43% $ 17,553 .80% 3.38% 1.09% 3.09% --
2001 1.00 2.17 20,185 .80 2.10 .88 2.02 --
2002 1.00 .81 18,409 .80 .81 .92 .69 --
2003 1.00 .34 16,902 .75 .35 1.11 (.01) --
2004 1.00 .51 13,985 .70 .49 1.24 (.05) --
Class B
- -------
2000 1.00 2.66 140 1.55 2.63 1.84 2.34 --
2001 1.00 1.41 30 1.55 1.35 1.63 1.27 --
2002 1.00 .12 64 1.48 .13 1.60 .01 --
2003 1.00 -- 64 1.10 -- 1.46 (.36) --
2004 1.00 -- 23 1.19 -- 1.73 (.54) --
- ---------------------------------------------------------------------------------------------------------------------------
INSURED INTERMEDIATE TAX EXEMPT FUND
- ------------------------------------
Class A
- -------
2000 $ 6.10 10.11% $ 9,070 .67% 4.32% 1.11% 3.88% 76%
2001 6.01 4.82 11,298 .75 3.90 1.05 3.60 134
2002 6.45 12.67 29,560 .75 3.27 1.14 2.88 168
2003 6.50 3.79 57,103 .85 2.28 1.09 2.04 77
2004 6.45 1.28 59,520 .95 2.08 1.05 1.98 102
Class B
- -------
2000 6.11 9.16 1,506 1.50 3.49 1.81 3.18 76
2001 6.02 4.02 2,674 1.50 3.15 1.80 2.85 134
2002 6.46 11.80 7,907 1.50 2.52 1.89 2.13 168
2003 6.51 3.02 12,680 1.60 1.53 1.84 1.29 77
2004 6.46 .53 11,125 1.70 1.33 1.80 1.23 102
- ---------------------------------------------------------------------------------------------------------------------------
INSURED TAX EXEMPT FUND
- -----------------------
Class A
- -------
2000 $10.33 11.93% $945,502 1.09% 4.69% 1.12% 4.66% 27%
2001 10.15 3.51 901,699 1.05 4.43 1.10 4.38 32
2002 10.46 10.10 915,763 1.03 4.26 1.10 4.19 29
2003 10.42 4.50 882,285 1.02 4.06 1.11 3.97 25
2004 10.25 2.47 824,507 1.01 4.08 1.15 3.94 27
Class B
- -------
2000 10.33 11.12 4,368 1.82 3.96 1.85 3.93 27
2001 10.14 2.70 5,260 1.78 3.70 1.83 3.65 32
2002 10.45 9.36 5,553 1.76 3.53 1.83 3.46 29
2003 10.40 3.70 4,576 1.75 3.33 1.84 3.24 25
2004 10.23 1.76 3,588 1.74 3.35 1.88 3.21 27
- ---------------------------------------------------------------------------------------------------------------------------
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
Value, Net and Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized Total
of Year Income Investments Operations Income Gain Distributions
- ---------------------------------------------------------------------------------------------------------------------------
INSURED TAX EXEMPT FUND II ++
- --------------------------
Class A
- -------
2000 $13.61 $.668 $1.120 $1.788 $.681 $.417 $1.098
2001 14.30 .591 .175 .766 .593 .143 .736
2002 14.33 .549 1.191 1.740 .548 .252 .800
2003 15.27 .526 .231 .757 .527 .090 .617
2004 15.41 .535 .123 .658 .531 .117 .648
Class B
- -------
2000+++ 14.61 .021 .109 .130 .023 .417 .440
2001 14.30 .487 .169 .656 .483 .143 .626
2002 14.33 .439 1.187 1.626 .444 .252 .696
2003 15.26 .412 .230 .642 .412 .090 .502
2004 15.40 .419 .129 .548 .411 .117 .528
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK INSURED TAX FREE FUND
- ------------------------------
Class A
- -------
2000 $13.66 $.646 $ 1.000 $1.646 $.696 $ -- $.696
2001 14.61 .622 (.164) .458 .628 -- .628
2002 14.44 .614 .869 1.483 .610 .413 1.023
2003 14.90 .596 .042 .638 .585 .123 .708
2004 14.83 .570 (.219) .351 .581 -- .581
Class B
- -------
2000 13.66 .557 .994 1.551 .601 -- .601
2001 14.61 .511 (.159) .352 .522 -- .522
2002 14.44 .500 .865 1.365 .502 .413 .915
2003 14.89 .485 .035 .520 .477 .123 .600
2004 14.81 .460 (.217) .243 .473 -- .473
- ---------------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
- ---------------------------------
ARIZONA FUND
- ------------
Class A
- -------
2000 $12.71 $.644 $ .698 $1.342 $.692 $ -- .692
2001 13.36 .616 (.012) .604 .614 -- .614
2002 13.35 .574 .752 1.326 .571 .125 .696
2003 13.98 .552 .101 .653 .556 .087 .643
2004 13.99 .552 (.074) .478 .550 .048 .598
Class B
- -------
2000 12.71 .541 .690 1.231 .591 -- .591
2001 13.35 .514 (.009) .505 .515 -- .515
2002 13.34 .470 .758 1.228 .463 .125 .588
2003 13.98 .445 .100 .545 .448 .087 .535
2004 13.99 .449 (.079) .370 .442 .048 .490
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
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 Asset -------------------- ----------------------
Value, Net Assets Net Net Portfolio
End of Total End of Period Investment Investment Turnover
Year Return* (in millions) Expenses Income Expenses Income Rate
- ---------------------------------------------------------------------------------------------------------------------------
INSURED TAX EXEMPT FUND II ++
- --------------------------
Class A
- -------
2000 $14.30 13.50% $ 15,966 .80% 4.78% 1.78% 3.80% 167%
2001 14.33 5.43 29,851 1.00 4.03 1.52 3.51 190
2002 15.27 12.34 64,728 1.00 3.67 1.47 3.20 147
2003 15.41 5.04 80,300 1.00 3.43 1.48 2.95 120
2004 15.42 4.36 83,555 1.00 3.47 1.46 3.01 115
Class B
- -------
2000+++ 14.30 .89 52 1.31+ 4.18+ 2.84+ 2.65+ 167
2001 14.33 4.63 3,019 1.75 3.28 2.27 2.76 190
2002 15.26 11.49 12,771 1.75 2.92 2.22 2.45 147
2003 15.40 4.26 17,392 1.75 2.68 2.23 2.20 120
2004 15.42 3.62 16,439 1.75 2.72 2.21 2.26 115
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK INSURED TAX FREE FUND
- ------------------------------
Class A
- -------
2000 $14.61 12.41% $167,877 1.06% 4.62% 1.20% 4.48% 20%
2001 14.44 3.14 171,962 1.01 4.22 1.16 4.07 48
2002 14.90 10.45 186,992 .99 4.11 1.14 3.96 70
2003 14.83 4.37 184,944 .99 3.99 1.14 3.84 21
2004 14.60 2.44 177,975 .98 3.88 1.13 3.73 30
Class B
- -------
2000 14.61 11.65 4,509 1.76 3.92 1.90 3.78 20
2001 14.44 2.40 6,981 1.74 3.49 1.89 3.34 48
2002 14.89 9.59 10,293 1.74 3.36 1.89 3.21 70
2003 14.81 3.55 8,583 1.74 3.24 1.89 3.09 21
2004 14.58 1.69 7,613 1.73 3.13 1.88 2.98 30
- ---------------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
- ---------------------------------
ARIZONA FUND
- ------------
Class A
- -------
2000 $13.36 10.89% $ 14,785 .60% 5.01% 1.12% 4.49% 42%
2001 13.35 4.56 16,652 .65 4.55 1.20 4.00 36
2002 13.98 10.12 20,148 .75 4.19 1.17 3.77 28
2003 13.99 4.77 21,709 .75 3.95 1.20 3.50 43
2004 13.87 3.51 17,911 .75 3.96 1.18 3.53 15
Class B
- -------
2000 13.35 9.94 823 1.40 4.21 1.92 3.69 42
2001 13.34 3.80 1,485 1.40 3.80 1.95 3.25 36
2002 13.98 9.34 2,111 1.50 3.44 1.92 3.02 28
2003 13.99 3.96 3,121 1.50 3.20 1.95 2.75 43
2004 13.87 2.71 2,523 1.50 3.21 1.93 2.78 15
- ---------------------------------------------------------------------------------------------------------------------------
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
Value, Net and Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized Total
of Year Income Investments Operations Income Gain Distributions
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA FUND
- ---------------
Class A
- -------
2000 $11.28 $.571 $ .916 $1.487 $.600 $.157 $.757
2001 12.01 .544 (.095) .449 .571 .028 .599
2002 11.86 .507 .719 1.226 .505 .111 .616
2003 12.47 .481 .063 .544 .479 .025 .504
2004 12.51 .480 .002 .482 .472 -- .472
Class B
- -------
2000 11.27 .469 .933 1.402 .505 .157 .662
2001 12.01 .456 (.097) .359 .481 .028 .509
2002 11.86 .413 .717 1.130 .409 .111 .520
2003 12.47 .387 .061 .448 .383 .025 .408
2004 12.51 .388 (.002) .386 .376 -- .376
- ---------------------------------------------------------------------------------------------------------------------------
COLORADO FUND
- -------------
Class A
- -------
2000 $12.24 $.640 $ .752 $1.392 $.642 $ -- $.642
2001 12.99 .619 .055 .674 .620 .014 .634
2002 13.03 .575 .801 1.376 .574 .082 .656
2003 13.75 .560 .126 .686 .556 -- .556
2004 13.88 .564 (.089) .475 .555 -- .555
Class B
- -------
2000 12.24 .546 .740 1.286 .546 -- .546
2001 12.98 .544 .071 .615 .551 .014 .565
2002 13.03 .471 .797 1.268 .476 .082 .558
2003 13.74 .456 .122 .578 .448 -- .448
2004 13.87 .466 (.089) .377 .447 -- .447
- ---------------------------------------------------------------------------------------------------------------------------
CONNECTICUT FUND
- ----------------
Class A
- -------
2000 $12.49 $.615 $ .653 $1.268 $.648 $ -- $.648
2001 13.11 .604 (.051) .553 .593 -- .593
2002 13.07 .564 .701 1.265 .577 .138 .715
2003 13.62 .536 .023 .559 .534 .115 .649
2004 13.53 .533 (.037) .496 .526 -- .526
Class B
- -------
2000 12.49 .515 .652 1.167 .547 -- .547
2001 13.11 .505 (.059) .446 .496 -- .496
2002 13.06 .460 .709 1.169 .481 .138 .619
2003 13.61 .434 .021 .455 .430 .115 .545
2004 13.52 .434 (.034) .400 .430 -- .430
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
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 Asset -------------------- ----------------------
Value, Net Assets Net Net Portfolio
End of Total End of Period Investment Investment Turnover
Year Return* (in millions) Expenses Income Expenses Income Rate
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA FUND
- ---------------
Class A
- -------
2000 $12.01 13.56% $14,765 .70% 4.94% 1.08% 4.56% 50%
2001 11.86 3.78 17,449 .65 4.52 1.14 4.03 36
2002 12.47 10.53 23,240 .75 4.14 1.16 3.73 51
2003 12.51 4.45 26,977 .75 3.87 1.20 3.42 81
2004 12.52 3.96 25,873 .85 3.86 1.16 3.55 30
Class B
- -------
2000 12.01 12.74 692 1.50 4.14 1.88 3.76 50
2001 11.86 3.01 1,046 1.40 3.77 1.89 3.28 36
2002 12.47 9.67 2,523 1.50 3.39 1.91 2.98 51
2003 12.51 3.65 3,511 1.50 3.12 1.95 2.67 81
2004 12.52 3.15 3,046 1.60 3.11 1.91 2.80 30
- ---------------------------------------------------------------------------------------------------------------------------
COLORADO FUND
- -------------
Class A
- -------
2000 $12.99 11.71% $ 5,139 .50% 5.14% 1.29% 4.35% 46%
2001 13.03 5.24 7,268 .50 4.70 1.15 4.05 61
2002 13.75 10.76 10,027 .60 4.28 1.27 3.61 32
2003 13.88 5.09 11,956 .60 4.07 1.29 3.38 46
2004 13.80 3.51 9,705 .60 4.06 1.25 3.41 7
Class B
- -------
2000 12.98 10.78 297 1.30 4.34 2.09 3.55 46
2001 13.03 4.56 419 1.25 3.95 1.90 3.30 61
2002 13.74 9.89 1,337 1.35 3.53 2.02 2.86 32
2003 13.87 4.28 1,678 1.35 3.32 2.04 2.63 46
2004 13.80 2.78 1,146 1.35 3.31 2.00 2.66 7
- ---------------------------------------------------------------------------------------------------------------------------
CONNECTICUT FUND
- ----------------
Class A
- -------
2000 $13.11 10.45% $19,952 .80% 5.40% 1.14% 5.06% 18%
2001 13.07 4.26 22,552 .80 4.57 1.19 4.18 33
2002 13.62 9.86 29,865 .80 4.20 1.20 3.80 52
2003 13.53 4.19 31,234 .85 3.94 1.20 3.59 25
2004 13.50 3.76 32,130 .85 3.97 1.18 3.64 45
Class B
- -------
2000 13.11 9.58 3,539 1.60 4.60 1.94 4.26 18
2001 13.06 3.43 3,689 1.55 3.82 1.94 3.43 33
2002 13.61 9.09 6,048 1.55 3.45 1.95 3.05 52
2003 13.52 3.40 5,959 1.60 3.19 1.95 2.84 25
2004 13.49 3.02 4,975 1.60 3.22 1.93 2.89 45
- ---------------------------------------------------------------------------------------------------------------------------
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
Value, Net and Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized Total
of Year Income Investments Operations Income Gain Distributions
- ---------------------------------------------------------------------------------------------------------------------------
FLORIDA FUND
- ------------
Class A
- -------
2000 $12.73 $.621 $ .812 $1.433 $.672 $.111 $.783
2001 13.38 .592 (.028) .564 .598 .146 .744
2002 13.20 .563 .796 1.359 .558 .171 .729
2003 13.83 .531 .038 .569 .527 .062 .589
2004 13.81 .523 (.068) .455 .517 .038 .555
Class B
- -------
2000 12.74 .516 .808 1.324 .573 .111 .684
2001 13.38 .491 (.035) .456 .500 .146 .646
2002 13.19 .462 .801 1.263 .452 .171 .623
2003 13.83 .429 .032 .461 .419 .062 .481
2004 13.81 .421 (.064) .357 .409 .038 .447
- ---------------------------------------------------------------------------------------------------------------------------
GEORGIA FUND
- ------------
Class A
- -------
2000 $12.24 $.632 $ .988 $1.620 $.630 $ -- $.630
2001 13.23 .619 (.027) .592 .622 -- .622
2002 13.20 .581 .823 1.404 .579 .165 .744
2003 13.86 .562 .109 .671 .557 .114 .671
2004 13.86 .547 (.119) .428 .548 -- .548
Class B
- -------
2000 12.23 .524 .999 1.523 .533 -- .533
2001 13.22 .519 (.033) .486 .526 -- .526
2002 13.18 .477 .820 1.297 .472 .165 .637
2003 13.84 .460 .103 .563 .449 .114 .563
2004 13.84 .447 (.117) .330 .440 -- .440
- ---------------------------------------------------------------------------------------------------------------------------
MARYLAND FUND
- -------------
Class A
- -------
2000 $12.63 $.626 $ .854 $1.480 $.630 $ -- $.630
2001 13.48 .605 (.077) .528 .608 -- .608
2002 13.40 .558 .773 1.331 .556 .035 .591
2003 14.14 .526 .094 .620 .525 .025 .550
2004 14.21 .538 (.194) .344 .524 -- .524
Class B
- -------
2000 12.63 .522 .856 1.378 .528 -- .528
2001 13.48 .504 (.080) .424 .504 -- .504
2002 13.40 .454 .769 1.223 .448 .035 .483
2003 14.14 .420 .102 .522 .417 .025 .442
2004 14.22 .436 (.200) .236 .416 -- .416
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
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 Asset -------------------- ----------------------
Value, Net Assets Net Net Portfolio
End of Total End of Period Investment Investment Turnover
Year Return* (in millions) Expenses Income Expenses Income Rate
- ---------------------------------------------------------------------------------------------------------------------------
FLORIDA FUND
- ------------
Class A
- -------
2000 $13.38 11.61% $25,823 .80% 4.81% 1.12% 4.49% 59%
2001 13.20 4.25 28,990 .80 4.38 1.17 4.01 73
2002 13.83 10.48 34,524 .85 4.13 1.18 3.80 42
2003 13.81 4.19 37,426 .85 3.84 1.17 3.52 37
2004 13.71 3.38 36,477 .90 3.81 1.16 3.55 20
Class B
- -------
2000 13.38 10.67 923 1.60 4.01 1.92 3.69 59
2001 13.19 3.42 1,356 1.55 3.63 1.92 3.26 73
2002 13.83 9.72 2,354 1.60 3.38 1.93 3.05 42
2003 13.81 3.38 3,354 1.60 3.09 1.92 2.77 37
2004 13.72 2.64 3,232 1.65 3.06 1.91 2.80 20
- ---------------------------------------------------------------------------------------------------------------------------
GEORGIA FUND
- ------------
Class A
- -------
2000 $13.23 13.61% $ 6,278 .50% 5.03% 1.10% 4.43% 40%
2001 13.20 4.52 7,429 .50 4.64 1.13 4.01 37
2002 13.86 10.84 8,324 .60 4.20 1.25 3.55 36
2003 13.86 4.94 9,633 .60 4.05 1.26 3.39 20
2004 13.74 3.18 10,815 .60 4.00 1.24 3.36 32
Class B
- -------
2000 13.22 12.76 566 1.30 4.23 1.90 3.63 40
2001 13.18 3.70 729 1.25 3.89 1.88 3.26 37
2002 13.84 10.00 1,531 1.35 3.45 2.00 2.80 36
2003 13.84 4.13 1,564 1.35 3.30 2.01 2.64 20
2004 13.73 2.45 1,295 1.35 3.25 1.99 2.61 32
- ---------------------------------------------------------------------------------------------------------------------------
MARYLAND FUND
- -------------
Class A
- -------
2000 $13.48 12.05% $14,580 .60% 4.86% 1.14% 4.32% 35%
2001 13.40 3.95 17,758 .65 4.46 1.17 3.94 33
2002 14.14 10.10 28,204 .75 4.04 1.17 3.62 35
2003 14.21 4.47 26,934 .85 3.71 1.18 3.38 27
2004 14.03 2.48 27,107 .85 3.83 1.18 3.50 15
Class B
- -------
2000 13.48 11.17 3,328 1.40 4.06 1.94 3.52 35
2001 13.40 3.16 4,474 1.40 3.71 1.92 3.19 33
2002 14.14 9.25 6,148 1.50 3.29 1.92 2.87 35
2003 14.22 3.75 6,033 1.60 2.96 1.93 2.63 27
2004 14.04 1.70 5,180 1.60 3.08 1.93 2.75 15
- ---------------------------------------------------------------------------------------------------------------------------
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
Value, Net and Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized Total
of Year Income Investments Operations Income Gain Distributions
- ---------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS FUND
- ------------------
Class A
- -------
2000 $11.17 $.559 $ .721 $1.280 $.600 $ -- $.600
2001 11.85 .538 (.050) .488 .540 .028 .568
2002 11.77 .512 .674 1.186 .513 .143 .656
2003 12.30 .484 .103 .587 .482 .165 .647
2004 12.24 .465 (.139) .326 .466 -- .466
Class B
- -------
2000 11.17 .466 .723 1.189 .509 -- .509
2001 11.85 .445 (.055) .390 .452 .028 .480
2002 11.76 .421 .679 1.100 .417 .143 .560
2003 12.30 .392 .099 .491 .386 .165 .551
2004 12.24 .375 (.135) .240 .370 -- .370
- ---------------------------------------------------------------------------------------------------------------------------
MICHIGAN FUND
- -------------
Class A
- -------
2000 $12.16 $.612 $ .683 $1.295 $.606 $.119 $.725
2001 12.73 .581 (.090) .491 .595 .006 .601
2002 12.62 .563 .668 1.231 .551 .270 .821
2003 13.03 .535 .061 .596 .541 .055 .596
2004 13.03 .523 (.240) .283 .526 .007 .533
Class B
- -------
2000 12.16 .509 .681 1.190 .511 .119 .630
2001 12.72 .487 (.092) .395 .499 .006 .505
2002 12.61 .464 .661 1.125 .455 .270 .725
2003 13.01 .437 .063 .500 .445 .055 .500
2004 13.01 .425 (.238) .187 .430 .007 .437
- ---------------------------------------------------------------------------------------------------------------------------
MINNESOTA FUND
- --------------
Class A
- -------
2000 $10.98 $.581 $ .600 $1.181 $.591 -- $.591
2001 11.57 .555 (.045) .510 .560 -- .560
2002 11.52 .520 .561 1.081 .521 -- .521
2003 12.08 .499 .083 .582 .492 -- .492
2004 12.17 .496 (.091) .405 .495 -- .495
Class B
- -------
2000 10.98 .492 .604 1.096 .506 -- .506
2001 11.57 .471 (.045) .426 .476 -- .476
2002 11.52 .433 .554 .987 .427 -- .427
2003 12.08 .407 .089 .496 .396 -- .396
2004 12.18 .408 (.089) .319 .399 -- .399
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
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 Asset -------------------- ----------------------
Value, Net Assets Net Net Portfolio
End of Total End of Period Investment Investment Turnover
Year Return* (in millions) Expenses Income Expenses Income Rate
- ---------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS FUND
- ------------------
Class A
- -------
2000 $11.85 11.83% $22,674 .80% 4.95% 1.16% 4.59% 38%
2001 11.77 4.15 24,626 .80 4.50 1.18 4.12 45
2002 12.30 10.26 25,687 .80 4.21 1.18 3.83 21
2003 12.24 4.86 25,819 .85 3.93 1.19 3.59 21
2004 12.10 2.74 25,329 .85 3.85 1.19 3.51 29
Class B
- -------
2000 11.85 10.95 1,530 1.60 4.15 1.96 3.79 38
2001 11.76 3.30 2,771 1.55 3.75 1.93 3.37 45
2002 12.30 9.49 3,855 1.55 3.46 1.93 3.08 21
2003 12.24 4.05 3,876 1.60 3.18 1.94 2.84 21
2004 12.11 2.01 3,623 1.60 3.10 1.94 2.76 29
- ---------------------------------------------------------------------------------------------------------------------------
MICHIGAN FUND
- -------------
Class A
- -------
2000 $12.73 10.96% $36,367 .87% 4.94% 1.12% 4.69% 23%
2001 12.62 3.89 38,797 .86 2.49 1.16 2.19 22
2002 13.03 9.93 41,992 .92 4.33 1.17 4.08 27
2003 13.03 4.66 41,585 .94 4.11 1.19 3.86 29
2004 12.78 2.25 35,869 .90 4.07 1.19 3.78 23
Class B
- -------
2000 12.72 10.03 1,088 1.67 4.14 1.92 3.89 23
2001 12.61 3.12 1,448 1.61 1.74 1.91 1.44 22
2002 13.01 9.05 1,758 1.67 3.58 1.92 3.33 27
2003 13.01 3.91 1,686 1.69 3.36 1.94 3.11 29
2004 12.76 1.48 2,302 1.65 3.32 1.94 3.03 23
- ---------------------------------------------------------------------------------------------------------------------------
MINNESOTA FUND
- --------------
Class A
- -------
2000 $11.57 11.08% $ 8,606 .50% 5.21% 1.15% 4.56% 32%
2001 11.52 4.47 10,321 .50 4.77 1.15 4.12 27
2002 12.08 9.57 12,259 .60 4.40 1.26 3.74 28
2003 12.17 4.91 13,848 .60 4.14 1.30 3.44 32
2004 12.08 3.42 14,287 .60 4.12 1.24 3.48 18
Class B
- -------
2000 11.57 10.24 96 1.30 4.41 1.95 3.76 32
2001 11.52 3.72 234 1.25 4.02 1.90 3.37 27
2002 12.08 8.71 821 1.35 3.65 2.01 2.99 28
2003 12.18 4.17 1,194 1.35 3.39 2.05 2.69 32
2004 12.10 2.68 1,122 1.35 3.37 1.99 2.73 18
- ---------------------------------------------------------------------------------------------------------------------------
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
Value, Net and Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized Total
of Year Income Investments Operations Income Gain Distributions
- ---------------------------------------------------------------------------------------------------------------------------
MISSOURI FUND
- -------------
Class A
- -------
2000 $12.09 $.618 $ .814 $1.432 $.642 $ -- $.642
2001 12.88 .604 (.073) .531 .601 -- .601
2002 12.81 .559 .844 1.403 .563 -- .563
2003 13.65 .541 .185 .726 .534 .012 .546
2004 13.83 .558 (.056) .502 .552 -- .552
Class B
- -------
2000 12.10 .520 .812 1.332 .552 -- .552
2001 12.88 .503 (.068) .435 .505 -- .505
2002 12.81 .460 .847 1.307 .467 -- .467
2003 13.65 .438 .180 .618 .426 .012 .438
2004 13.83 .454 (.050) .404 .444 -- .444
- ---------------------------------------------------------------------------------------------------------------------------
NEW JERSEY FUND
- ---------------
Class A
- -------
2000 $12.45 $.609 $ .650 $1.259 $.629 $ -- $.629
2001 13.08 .588 (.061) .527 .610 .037 .647
2002 12.96 .543 .694 1.237 .553 .264 .817
2003 13.38 .524 .038 .562 .526 .116 .642
2004 13.30 .518 (.184) .334 .514 -- .514
Class B
- -------
2000 12.43 .504 .649 1.153 .533 -- .533
2001 13.05 .491 (.060) .431 .514 .037 .551
2002 12.93 .445 .686 1.131 .457 .264 .721
2003 13.34 .424 .046 .470 .424 .116 .540
2004 13.27 .418 (.192) .226 .406 -- .406
- ---------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA FUND
- -------------------
Class A
- -------
2000 $12.01 $.595 $ .859 $1.454 $.604 $ -- $.604
2001 12.86 .583 (.082) .501 .581 -- .581
2002 12.78 .541 .788 1.329 .539 -- .539
2003 13.57 .536 .145 .681 .537 .084 .621
2004 13.63 .530 (.108) .422 .522 -- .522
Class B
- -------
2000 12.01 .497 .867 1.364 .504 -- .504
2001 12.87 .486 (.083) .403 .483 -- .483
2002 12.79 .442 .791 1.233 .443 -- .443
2003 13.58 .434 .141 .575 .441 .084 .525
2004 13.63 .429 (.103) .326 .426 -- .426
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
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 Asset -------------------- ----------------------
Value, Net Assets Net Net Portfolio
End of Total End of Period Investment Investment Turnover
Year Return* (in millions) Expenses Income Expenses Income Rate
- ---------------------------------------------------------------------------------------------------------------------------
MISSOURI FUND
- -------------
Class A
- -------
2000 $12.88 12.21% $ 3,344 .50% 5.04% 1.39% 4.15% 35%
2001 12.81 4.17 4,585 .50 4.65 1.16 3.99 29
2002 13.65 11.16 6,656 .60 4.22 1.31 3.51 45
2003 13.83 5.43 8,158 .60 3.95 1.35 3.20 22
2004 13.78 3.73 7,839 .60 4.07 1.28 3.39 7
Class B
- -------
2000 12.88 11.30 251 1.30 4.24 2.19 3.35 35
2001 12.81 3.40 719 1.25 3.90 1.91 3.24 29
2002 13.65 10.36 2,096 1.35 3.47 2.06 2.76 45
2003 13.83 4.60 3,108 1.35 3.20 2.10 2.45 22
2004 13.79 2.99 3,274 1.35 3.32 2.03 2.64 7
- ---------------------------------------------------------------------------------------------------------------------------
NEW JERSEY FUND
- ---------------
Class A
- -------
2000 $13.08 10.41% $54,051 .97% 4.80% 1.12% 4.65% 41%
2001 12.96 4.06 60,321 .96 4.47 1.16 4.27 37
2002 13.38 9.72 65,130 .96 4.06 1.16 3.86 51
2003 13.30 4.28 63,407 .96 3.90 1.16 3.70 34
2004 13.12 2.59 63,235 .95 3.95 1.15 3.75 28
Class B
- -------
2000 13.05 9.51 3,799 1.77 4.00 1.92 3.85 41
2001 12.93 3.32 4,706 1.71 3.72 1.91 3.52 37
2002 13.34 8.88 6,171 1.71 3.31 1.91 3.11 51
2003 13.27 3.59 7,067 1.71 3.15 1.91 2.95 34
2004 13.09 1.75 6,514 1.70 3.20 1.90 3.00 28
- ---------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA FUND
- -------------------
Class A
- -------
2000 $12.86 12.45% $10,723 .50% 4.86% 1.13% 4.23% 42%
2001 12.78 3.94 13,316 .65 4.50 1.20 3.95 51
2002 13.57 10.58 18,479 .75 4.10 1.23 3.62 13
2003 13.63 5.11 19,592 .75 3.94 1.25 3.44 22
2004 13.53 3.18 21,430 .75 3.94 1.20 3.49 59
Class B
- -------
2000 12.87 11.63 1,566 1.30 4.06 1.93 3.43 42
2001 12.79 3.15 1,839 1.40 3.75 1.95 3.20 51
2002 13.58 9.78 3,750 1.50 3.35 1.98 2.87 13
2003 13.63 4.30 4,586 1.50 3.19 2.00 2.69 22
2004 13.53 2.45 4,375 1.50 3.19 1.95 2.74 59
- ---------------------------------------------------------------------------------------------------------------------------
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
Value, Net and Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized Total
of Year Income Investments Operations Income Gain Distributions
- ---------------------------------------------------------------------------------------------------------------------------
OHIO FUND
- ---------
Class A
- -------
2000 $11.88 $.594 $ .710 $1.304 $.636 $.088 $.724
2001 12.46 .567 (.067) .500 .575 .105 .680
2002 12.28 .534 .768 1.302 .531 .191 .722
2003 12.86 .520 .087 .607 .517 -- .517
2004 12.95 .517 (.187) .330 .510 -- .510
Class B
- -------
2000 11.88 .495 .723 1.218 .540 .088 .628
2001 12.47 .477 (.073) .404 .479 .105 .584
2002 12.29 .441 .765 1.206 .435 .191 .626
2003 12.87 .425 .086 .511 .421 -- .421
2004 12.96 .422 (.198) .224 .414 -- .414
- ---------------------------------------------------------------------------------------------------------------------------
OREGON FUND
- -----------
Class A
- -------
2000 $11.95 $.593 $ .689 $1.282 $.602 -- $.602
2001 12.63 .573 (.067) .506 .566 -- .566
2002 12.57 .533 .707 1.240 .540 -- .540
2003 13.27 .524 .078 .602 .522 -- .522
2004 13.35 .513 (.152) .361 .511 -- .511
Class B
- -------
2000 11.93 .497 .688 1.185 .505 -- .505
2001 12.61 .477 (.057) .420 .470 -- .470
2002 12.56 .434 .700 1.134 .444 -- .444
2003 13.25 .424 .092 .516 .426 -- .426
2004 13.34 .414 (.159) .255 .415 -- .415
- ---------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA FUND
- -----------------
Class A
- -------
2000 $12.36 $.615 $ .740 $1.355 $.631 $.114 $.745
2001 12.97 .577 (.002) .575 .591 .074 .665
2002 12.88 .547 .810 1.357 .541 .126 .667
2003 13.57 .538 .016 .554 .534 .050 .584
2004 13.54 .527 (.219) .308 .528 -- .528
Class B
- -------
2000 12.35 .529 .728 1.257 .533 .114 .647
2001 12.96 .473 (.004) .469 .495 .074 .569
2002 12.86 .447 .814 1.261 .445 .126 .571
2003 13.55 .435 .024 .459 .429 .050 .479
2004 13.53 .427 (.227) .200 .420 -- .420
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
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 Asset -------------------- ----------------------
Value, Net Assets Net Net Portfolio
End of Total End of Period Investment Investment Turnover
Year Return* (in millions) Expenses Income Expenses Income Rate
- ---------------------------------------------------------------------------------------------------------------------------
OHIO FUND
- ---------
Class A
- -------
2000 $12.46 11.32% $19,327 .80% 4.92% 1.15% 4.57% 35%
2001 12.28 4.05 19,996 .80 4.51 1.18 4.13 40
2002 12.86 10.79 22,751 .75 4.20 1.19 3.76 40
2003 12.95 4.82 23,032 .75 4.02 1.20 3.57 32
2004 12.77 2.63 22,010 .75 4.06 1.19 3.62 24
Class B
- -------
2000 12.47 10.53 972 1.60 4.12 1.95 3.77 35
2001 12.29 3.26 1,444 1.55 3.76 1.93 3.38 40
2002 12.87 9.95 2,595 1.50 3.45 1.94 3.01 40
2003 12.96 4.04 4,304 1.50 3.27 1.95 2.82 32
2004 12.77 1.78 3,658 1.50 3.31 1.94 2.87 24
- ---------------------------------------------------------------------------------------------------------------------------
OREGON FUND
- -----------
Class A
- -------
2000 $12.63 11.04% $15,145 .60% 4.89% 1.22% 4.27% 37%
2001 12.57 4.05 17,341 .65 4.50 1.20 3.95 37
2002 13.27 10.04 22,578 .75 4.12 1.21 3.66 32
2003 13.35 4.63 25,726 .75 3.94 1.22 3.47 4
2004 13.20 2.78 26,631 .75 3.89 1.21 3.43 15
Class B
- -------
2000 12.61 10.18 1,226 1.40 4.09 2.02 3.47 37
2001 12.56 3.35 1,584 1.40 3.75 1.95 3.20 37
2002 13.25 9.16 3,155 1.50 3.37 1.96 2.91 32
2003 13.34 3.96 3,040 1.50 3.19 1.97 2.72 4
2004 13.18 1.96 2,695 1.50 3.14 1.96 2.68 15
- ---------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA FUND
- -----------------
Class A
- -------
2000 $12.97 11.29% $37,012 .87% 4.88% 1.12% 4.63% 40%
2001 12.88 4.47 39,649 .86 4.39 1.16 4.09 35
2002 13.57 10.72 45,111 .91 4.10 1.16 3.85 23
2003 13.54 4.17 45,155 .90 3.98 1.15 3.73 12
2004 13.32 2.35 45,969 .90 3.95 1.16 3.69 24
Class B
- -------
2000 12.96 10.44 1,235 1.67 4.08 1.92 3.83 40
2001 12.86 3.64 2,562 1.61 3.64 1.91 3.34 35
2002 13.55 9.95 3,249 1.66 3.35 1.91 3.10 23
2003 13.53 3.45 3,534 1.65 3.23 1.90 2.98 12
2004 13.31 1.52 3,453 1.65 3.20 1.91 2.94 24
- ---------------------------------------------------------------------------------------------------------------------------
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
Value, Net and Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized Total
of Year Income Investments Operations Income Gain Distributions
- ---------------------------------------------------------------------------------------------------------------------------
VIRGINIA FUND
- -------------
Class A
- -------
2000 $12.31 $.628 $ .745 $1.373 $.636 $.047 $.683
2001 13.00 .579 (.059) .520 .598 .062 .660
2002 12.86 .543 .738 1.281 .536 .075 .611
2003 13.53 .550 .063 .613 .540 .083 .623
2004 13.52 .538 (.173) .365 .541 .004 .545
Class B
- -------
2000 12.29 .538 .739 1.277 .540 .047 .587
2001 12.98 .472 (.048) .424 .502 .062 .564
2002 12.84 .439 .726 1.165 .440 .075 .515
2003 13.49 .445 .072 .517 .444 .083 .527
2004 13.48 .436 (.177) .259 .445 .004 .449
- ---------------------------------------------------------------------------------------------------------------------------
* Calculated without sales charges
** Net of expenses waived by the investment adviser (Note 5)
+ Annualized
++ Prior to December 18, 2000, known as Executive Investors Insured Tax
Exempt Fund
+++ For the period December 18, 2000 (date Class B shares were first
offered) to December 31, 2000
See notes to financial statements.
- ---------------------------------------------------------------------------------------------------------------------------
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 Asset -------------------- ----------------------
Value, Net Assets Net Net Portfolio
End of Total End of Period Investment Investment Turnover
Year Return* (in millions) Expenses Income Expenses Income Rate
- ---------------------------------------------------------------------------------------------------------------------------
VIRGINIA FUND
- -------------
Class A
- -------
2000 $13.00 11.46% $23,606 .80% 5.01% 1.15% 4.66% 34%
2001 12.86 4.04 32,580 .80 4.44 1.17 4.07 36
2002 13.53 10.14 40,430 .85 4.10 1.17 3.78 43
2003 13.52 4.62 41,758 .91 4.06 1.16 3.81 17
2004 13.34 2.78 35,941 .90 4.02 1.17 3.75 23
Class B
- -------
2000 12.98 10.64 899 1.60 4.21 1.95 3.86 34
2001 12.84 3.29 1,465 1.55 3.69 1.92 3.32 36
2002 13.49 9.21 2,364 1.60 3.35 1.92 3.03 43
2003 13.48 3.89 2,851 1.66 3.31 1.91 3.06 17
2004 13.29 1.98 2,392 1.65 3.27 1.92 3.00 23
- ---------------------------------------------------------------------------------------------------------------------------
Report of Independent Registered Public Accounting Firm
To the Shareholders and Boards of Directors/Trustees of
First Investors Tax-Exempt Money Market Fund, Inc.
First Investors Series Fund
First Investors Insured Tax Exempt Fund, Inc.
Executive Investors Trust
First Investors New York Insured Tax Free Fund, Inc.
and First Investors Multi-State Insured Tax Free Fund
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of First Investors Tax-Exempt
Money Market Fund, Inc., First Investors Insured Intermediate Tax Exempt
Fund (a series of First Investors Series Fund), First Investors Insured Tax
Exempt Fund, Inc., First Investors Insured Tax Exempt Fund II (a series of
Executive Investors Trust), First Investors New York Insured Tax Free Fund,
Inc. and the seventeen Funds comprising First Investors Multi-State Insured
Tax Free Fund, as of December 31, 2004, the related statements of
operations for the year then ended, the statements of changes in net assets
for each of the two years in the period then ended, and the financial
highlights for each of the periods indicated thereon. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements and financial highlights are free of
material misstatement. 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
December 31, 2004, by correspondence with the custodian and brokers. Where
brokers have not replied to our confirmation request, 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 Tax-Exempt Money Market Fund, Inc., First Investors
Insured Intermediate Tax Exempt Fund, First Investors Insured Tax Exempt
Fund, Inc., First Investors Insured Tax Exempt Fund II, First Investors New
York Insured Tax Free Fund, Inc. and the seventeen Funds comprising First
Investors Multi-State Insured Tax Free Fund, as of December 31, 2004, and
the results of their operations for the year then ended, changes in their
net assets for each of the two years in the period then ended, and their
financial highlights for each of the periods presented, in conformity with
accounting principles generally accepted in the United States of America.
Tait, Weller & Baker
Philadelphia, Pennsylvania
February 1, 2005
This page intentionally left blank.
FIRST INVESTORS TAX EXEMPT FUNDS
Directors/Trustees and Officers*
Position(s)
Held with Principal Number of Other
Funds and Occupation(s) Portfolios in Trusteeships
Name, Year of Birth Length of During Past Fund Complex Directorships
and Address Service 5 Years Overseen Held
- ----------- ------- ------- -------- ----
DISINTERESTED DIRECTORS/TRUSTEES
Robert M. Grohol 1932 Director/Trustee None/Retired 49 None
c/o First Investors since 6/30/00
Management Company, Inc.
95 Wall Street
New York, NY 10005
Rex R. Reed 1922 Director/Trustee None/Retired 49 None
c/o First Investors since 3/31/84
Management Company, Inc.
95 Wall Street
New York, NY 10005
Herbert Rubinstein 1921 Director/Trustee None/Retired 49 None
c/o First Investors since 9/20/79
Management Company, Inc.
95 Wall Street
New York, NY 10005
James M. Srygley 1932 Director/Trustee Owner 49 None
c/o First Investors since 1/19/95 Hampton
Management Company, Inc. Properties
95 Wall Street
New York, NY 10005
Robert F. Wentworth 1929 Director/Trustee None/Retired 49 None
c/o First Investors since 10/15/92
Management Company, Inc.
95 Wall Street
New York, NY 10005
Position(s)
Held with Principal Number of Other
Funds and Occupation(s) Portfolios in Trusteeships
Name, Year of Birth Length of During Past Fund Complex Directorships
and Address Service 5 Years Overseen Held
- ----------- ------- ------- -------- ----
INTERESTED DIRECTORS/TRUSTEES**
Glenn O. Head 1925 Director/Trustee Chairman of 49 None
c/o First Investors since 1968 + First Investors
Management Company, Inc. Corporation,
95 Wall Street First Investors
New York, NY 10005 Consolidated
Corporation,
First Investors
Management
Company, Inc.,
and Administrative
Data Management
Corp., and officer
of other affiliated
companies***
Kathryn S. Head 1955 Director/Trustee Officer and 49 None
c/o First Investors since 3/17/94 Director of
Management Company, Inc. First Investors
581 Main Street President Corporation;
Woodbridge, NJ 07095 since 11/15/01 First Investors
Consolidated
Corporation;
First Investors
Management
Company, Inc.;
Administrative
Data Management
Corp.; First
Investors
Federal Savings
Bank; School
Financial
Management
Services, Inc.;
and other affiliated
companies***
FIRST INVESTORS TAX EXEMPT FUNDS
Directors/Trustees and Officers*(continued)
Position(s)
Held with Principal Number of Other
Funds and Occupation(s) Portfolios in Trusteeships
Name, Year of Birth Length of During Past Fund Complex Directorships
and Address Service 5 Years Overseen Held
- ----------- ------- ------- -------- ----
INTERESTED DIRECTORS/TRUSTEES** (continued)
John T. Sullivan 1932 Director/Trustee Of Counsel 49 None
c/o First Investors since 9/20/79 Hawkins,
Management Company, Inc. Delafield &
95 Wall Street Wood; Director
New York, NY 10005 of First Investors
Corporation;
First Investors
Consolidated
Corporation;
First Investors
Management
Company, Inc.;
Administrative
Data Management
Corp.; and
other affiliated
companies***
* Each Director/Trustee serves for an indefinite term with the Funds,
until his/her successor is elected.
** Mr. Head and Ms. Head are Interested Directors/Trustees because (a)
they are indirect owners of more than 5% of the voting stock of the
adviser and principal underwriter of the Funds, (b) they are officers,
directors and employees of the adviser and principal underwriter of
the Funds. Ms. Head is the daughter of Mr. Head. Mr. Sullivan is an
Interested Director/Trustee because he is a director and Chairman of
the Executive Committee of First Investors Corporation and he
indirectly owns securities issued by the adviser and principal
underwriter of the Funds.
*** Other affiliated companies consist of: First Investors Realty
Company, Inc., First Investors Life Insurance Company, First Investors
Leverage Corporation, Route 33 Realty Corporation, First Investors
Credit Funding Corporation, N.A.K. Realty Corporation, Real Property
Development Corporation, First Investors Credit Corporation and First
Investors Resources, Inc.
+ Mr. Head retired effective December 31, 2004.
Position(s)
Held with Principal Number of Other
Funds and Occupation(s) Portfolios in Trusteeships
Name, Year of Birth Length of During Past Fund Complex Directorships
and Address Service 5 Years Overseen Held
- ----------- ------- ------- -------- ----
OFFICER(S) WHO ARE NOT DIRECTORS/TRUSTEES
Clark D. Wagner 1959 Vice President Director of 27 None
c/o First Investors since 1991 Fixed Income
Management Company, Inc. (previously Chief
95 Wall Street Investment Officer)
New York, NY 10005 of First Investors
Management
Company, Inc.
Michael J. O'Keefe 1965 Vice President Portfolio Manager 3 None
c/o First Investors since 1996 of First Investors
Management Company, Inc. Management
95 Wall Street Company, Inc.
New York, NY 10005
Joseph I. Benedek 1957 Treasurer Treasurer 49 None
c/o First Investors since 1988 and Principal
Management Company, Inc. Accounting Officer
581 Main Street
Woodbridge, NJ 07095
Larry R. Lavoie 1947 Chief Compliance General Counsel 49 None
c/o First Investors Officer since of First Investors
Management Company, Inc. 8/19/04 Corporation and
95 Wall Street its affiliates.
New York, NY 10005
Director/Trustee
from 9/17/1998
to 8/18/2004.
FIRST INVESTORS TAX EXEMPT 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
Legal Counsel
Kirkpatrick & Lockhart
Nicholson Graham LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
1818 Market Street
Philadelphia, PA 19103
Transfer Agent
Administrative Data Management Corp.
581 Main Street
Woodbridge, NJ 07095-1198
The Tax-Exempt Money Market 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 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 in writing or by calling 800-423-4026.
A description of the policies and procedures that the Funds use to vote
proxies relating to a portfolio's securities is available, without charge,
upon request by calling toll free 800-423-4026 or can be viewed online or
downloaded from the EDGAR database on the Securities and Exchange
Commission's ("SEC") internet website at http://www.sec.gov. In addition,
information regarding how the Funds voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30, is
available, without charge, upon request in writing or by calling
800-423-4026 and on the SEC's internet website at http://www.sec.gov.
The Funds file their complete schedule of portfolio holdings with the SEC
for the first and third quarters of each fiscal year on Form N-Q. The
Funds' Form N-Q is available on the SEC's website at http://www.sec.gov;
and may also be reviewed and copied at the SEC's Public Reference Room in
Washington D.C. Information on the operation of the Public Reference Room
may be obtained by calling 800-SEC-0330. The schedule of portfolio holdings
is also available, without charge, upon request in writing or by calling
800-423-4026.
NOTES
NOTES
NOTES
NOTES
NOTES
NOTES
Item 2. Code of Ethics
As of the end of the period, December 31, 2004, the Registrant 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. See Item 12(a) below for a copy of the
code of ethics.
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
The independent director currently serving as the audit committee
financial expert is Robert F. Wentworth.
The Registrant's Board has unanimously determined that Mr. Wentworth
satisfied the definition of an audit committee financial expert as
set forth in the instructions to Form N-CSR under the Investment
Company Act of 1940. Specifically, the Board determined that
Mr. Wentworth has all of the following: (i) an understanding of
generally accepted accounting principles and financial
statements; (ii) the ability to assess the general application of such
principles in connection with the accounting for estimates, accruals,
and reserves; (iii) experience preparing, auditing, analyzing or
evaluating financial statements that present the breadth and level of
complexity of accounting issues that are generally comparable to the
breadth and complexity of issues that can reasonably be expected to be
raised by the Funds' financial statements, or experience actively
supervising one or more persons engaged in such activities; (iv) an
understanding of internal controls and procedures for financial reports;
and (v) an understanding of audit committee functions. Furthermore, he
had acquired these attributes through education and many years of
relevant experience in various financial positions with American
Telephone and Telegraph Company, including the positions of
Director - Accounting, Director - Finance, Director - Financial
Reporting and Analysis, Controller, and Director of Business Planning.
Mr. Wentworth also has many years experience serving on the Audit
Committees of First Investors Funds and other organizations. Finally,
Mr. Wentworth is independent as defined in the instructions to the Form.
Item 4. Principal Accountant Fees and Services
Fiscal Year Ended
December 31,
-----------------
2004 2003
---- ----
(a) Audit Fees
First Investors
Tax-Exempt Money Market Fund, Inc. $12,400 $12,400
Series Fund 7,400 7,400
Insured Tax Exempt Fund, Inc. 37,900 37,900
Executive Investors Trust 11,900 11,900
Multi-State Insured Tax Free Fund 99,000 99,000
New York Tax Free Fund, Inc. 18,400 18,400
Fiscal Year Ended
December 31,
-----------------
2004 2003
---- ----
(b) Audit-Related Fees
First Investors
Tax-Exempt Money Market Fund, Inc. $ 0 $ 0
Series Fund 0 0
Insured Tax Exempt Fund, Inc. 0 0
Executive Investors Trust 0 0
Multi-State Insured Tax Free Fund 0 0
New York Tax Free Fund, Inc. 0 0
Fiscal Year Ended
December 31,
-----------------
2004 2003
---- ----
(c) Tax Fees
First Investors
Tax-Exempt Money Market Fund, Inc. $ 2,500 $ 2,500
Series Fund 3,500 3,500
Insured Tax Exempt Fund, Inc. 3,500 3,500
Executive Investors Trust 3,500 3,500
Multi-State Insured Tax Free Fund 51,000 51,000
New York Tax Free Fund, Inc. 3,500 3,500
Nature of fees: tax returns preparation and tax compliance
Fiscal Year Ended
December 31,
-----------------
2004 2003
---- ----
(d) All Other Fees
First Investors
Tax-Exempt Money Market Fund, Inc. $ 0 $ 0
Series Fund 0 0
Insured Tax Exempt Fund, Inc. 0 0
Executive Investors Trust (Insured Tax 0 0
Multi-State Insured Tax Free Fund 0 0
New York Tax Free Fund, Inc. 0 0
(e)(1) Audit committee's pre-approval policies
The Audit Committee has adopted a charter under which it has the duties,
among other things,
(a) to pre-approve, and to recommend to the full Board, the
selection, retention or termination of the independent auditors to provide
audit, review or attest services to the Funds and, in connection therewith,
evaluate the independence of the auditors and to obtain the auditors'
specific representations as to their independence;
(b) to pre-approve all non-audit services to be provided to
the Funds by the independent auditor;
(c) to pre-approve all non-audit services to be provided by
the Funds' independent auditor to the Funds' investment adviser or to any
entity that controls, is controlled by or is under common control with the
Funds investment adviser ("adviser affiliate") and that provides ongoing
services to the Funds, if the engagement relates directly to the operations
and financial reporting of the Funds;
(d) to establish, if deemed necessary or appropriate as an
alternative to Audit Committee pre-approval of services to be provided by
the independent auditor as required by paragraphs (b) and (c) above,
policies and procedures to permit such services to be pre-approved by other
means, such as by action of a designated member and members of the Audit
Committee, subject to subsequent Committee review and oversight;
(e) to consider whether the non-audit services provided by the
Funds' independent auditors to the Funds' investment adviser or any adviser
affiliate that provides ongoing services to the Funds, which services were
not pre-approved by the Audit Committee, are compatible with maintaining the
auditors' independence;
(f) to meet with the Funds' independent auditors, including
meetings without management representatives, as necessary (i) to review the
arrangements for, and scope of, the annual audit, any special audits and any
other services to be provided to the Fund's by the auditors; (ii) to discuss
any matters of concern relating to the Fund's financial statements,
including any adjustments to such statements recommended by the auditors, or
other results of said audit(s); and (iii) to review the form of opinion the
auditors propose to render to the Board and shareholders;
(g) to receive and consider (i) information and comments from
the auditors with respect to the Funds' accounting and financial reporting
policies, procedures and internal control over financial reporting
(including the Funds' critical accounting policies and practices) and to
consider management's responses to any such comments; (ii) reports from the
auditors regarding any material written communications between the auditors
and management; and (iii) reports from the auditors regarding all non-audit
services provided to any entity in the Funds' investment company complex
that were not pre-approved by the Audit Committee or pursuant to
pre-approved policies and procedures established by the Audit Committee and
associated fees;
(h) to consider the effect upon the Funds of any changes in
accounting principles or practices proposed by management or the auditors;
(i) to review and approve the fees proposed to be charged to the
Funds by the auditors for each audit and non-audit service;
(j) to receive reports from Fund management in connection with
the required certifications on Form N-CSR under the 1940 Act of any
significant deficiencies in the design or operation of the Funds' internal
control over financial reporting or material weakness therein and any
reported evidence of fraud, whether or not material, involving management or
other employees of the Funds who have a significant role in the Funds'
internal control over financial reporting;
(k) to investigate improprieties or suspected improprieties in
the Funds' accounting or financial reporting brought to the attention of the
Audit Committee;
(l) to receive and consider reports from attorneys, in
accordance with the "Up-the-Ladder" Reporting Policies for attorneys who
appear or practice before the Securities and Exchange Commission in the
representation of the Funds and in accordance with applicable federal law,
and auditors relating to possible material violations of federal or state
law or fiduciary duty;
(m) to report its activities to the full Board on a regular
basis and to make such recommendations with respect to the above and other
matters as the Audit Committee may deem necessary or appropriate;
(n) to meet with the Treasurer of the Funds and, as necessary,
with internal auditors, if any, for the management company; and
(o) to perform such other functions and to have such powers as
may be necessary or appropriate in the efficient and lawful discharge of the
powers provided in this Charter.
(e)(2) None, or 0%, of the services relating to the Audit-Related Fees,
Tax Fees and All Other Fees paid by the Registrant and Related Entities
disclosed above were approved by the audit committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X (which permits audit committee
approval after the start of the engagement with respect to services other
than audit review or attest services, if certain conditions are satisfied).
(f) Not Applicable
(g) Aggregate non-audit fees billed by the Registrant's accountant
for services rendered to the Registrant and the Registrant's investment
adviser or any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the
Registrant for the two fiscal years ended December 31, 2004 and 2003
were $35,000 and $35,000, respectively.
(h) Not Applicable
Item 5. Audit Committee of Listed Registrants
Audit Committee Members -
Robert M. Grohol
Rex R. Reed
Herbert Rubinstein
James M. Srygley
Robert F. Wentworth
Item 6. Schedule of Investments
Schedule is included as part of the report to
shareholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies & Procedures for
Closed-End Management Investment Companies
Not applicable to the Registrant
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicalbe to the Registrant
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Companies and Affiliated Purchasers
Not applicable to the Registrant
Item 10. Submission of Matters to a Vote of Security Holders
The Nominating and Compensation Committee (the "Committee") of the Board of
Directors/Trustees of the First Investors Family of Funds (the "Board") was
established in November 2004. The Committee is comprised of all the
Independent Directors/Trustees. The Committee is responsible for, among
other things, selecting and nominating persons to serve as Independent
Directors/Trustees on the Board, evaluating candidates' qualifications,
reviewing the composition of the Board to determine whether it may be
appropriate to add other Independent Directors/Trustees, and reviewing
director/trustee compensation. When the Board has, or expects to have,
vacancies, the Committee shall consider shareholder recommendations for
nominations to fill such vacancies if such recommendations are submitted in
writing and addressed to the Committee at the Funds' offices at: First
Investors Funds, 95 Wall Street, New York, NY 10005.
Item 11. Controls and Procedures
(a) The Registrant's Principal Executive Officer and Principal
Financial Officer have concluded that the Registrant's disclosure controls
and procedures (as defined in Rule 30a-3(c) under the Investment Company
Act of 1940, as amended) are effective, based on their evaluation of these
disclosure controls and procedures as of a date within 90 days of the
filing date of this report.
(b) There were no 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 12. Exhibits
(a) Code of Ethics - Previously filed on the Registrant's Form N-CSR on
September 8, 2004
(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 has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
First Investors Tax-Exempt Money Market Fund, Inc.
First Investors Series Fund
First Investors Insured Tax Exempt Fund, Inc.
Executive Investors Trust
First Investors Multi-State Insured Tax Free Fund
First Investors New York Insured Tax Free Fund, Inc.
(Registrant)
By /S/ KATHRYN S. HEAD
Kathryn S. Head
President and Principal Executive Officer
Date: March 8, 2005
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 Tax-Exempt Money Market Fund, Inc.
First Investors Series Fund
First Investors Insured Tax Exempt Fund, Inc.
Executive Investors Trust
First Investors Multi-State Insured Tax Free Fund
First Investors New York Insured Tax Free Fund, Inc.
(Registrant)
By /S/ JOSEPH I. BENEDEK
Joseph I. Benedek
Treasurer and Principal Financial Officer
Date: March 8, 2005