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)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
1-212-858-8000
DATE OF FISCAL YEAR END: DECEMBER 31, 2003
DATE OF REPORTING PERIOD: DECEMBER 31, 2003
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, 2003
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, 2003. During the year, the Fund's
return on a net asset value basis was 0.34% 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 low interest rate
environment. Short-term municipal interest rates were generally mixed last
year, but remained near their lowest level in decades. Yields on one-year
fixed rate notes moved lower through most of the first half of the year.
However, buoyed in part by higher taxable rates and more attractive levels
on variable securities, yields climbed through most of the second half of
the year.
The Fund continued to invest conservatively during 2003, placing a large
portion of its assets in short-term variable rate securities to provide
liquidity to shareholders. Since these securities reset interest rates at
specific intervals, they are subject to increased yield volatility. Our
exposure to variable securities during the first and third quarters
detracted from performance as fixed rate securities outperformed variables
during these periods. In an effort to mitigate this volatility and its
negative impact on performance, the Fund purchased fixed-rate securities
throughout the year.
Although money market funds are relatively conservative vehicles, 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 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, 2004
Portfolio of Investments
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL INVESTMENTS--103.1%
Alabama--4.4%
$250M Mobile County GO Warrants, 4%, 2/1/2004
(MBIA Insured) $250,650 $148
500M Mobile Industrial Dev. Board Facilities Rev. Bonds,
VR, 1.15% (CO; Kimberly-Clark Corp.) 500,000 295
- ----------------------------------------------------------------------------------------------------------------------
750,650 443
- ----------------------------------------------------------------------------------------------------------------------
Alaska--2.9%
500M Valdez Marine Terminal Rev. Bonds, VR, 1.2%
(CO; ExxonMobil Corp.) 500,000 295
- ----------------------------------------------------------------------------------------------------------------------
Arizona--1.8%
300M Casa Grande Industrial Dev. Auth. Multi-Family
Hsg. Rev. Bonds, VR, 1.28% (Fannie Mae
Liquidity Facility) 300,000 177
- ----------------------------------------------------------------------------------------------------------------------
California--2.4%
400M California State Public Works Board Rev. Bonds,
7%, 3/1/2014 (Prerefunded 3/1/2004)
(U.S. Govt. Securities) 411,905 243
- ----------------------------------------------------------------------------------------------------------------------
Colorado--2.4%
400M Colorado Housing & Financial Auth. Rev. Bonds,
VR, 1.2% (Fannie Mae Collateral Agreement) 400,000 236
- ----------------------------------------------------------------------------------------------------------------------
Florida--4.5%
450M Florida Housing Finance Agency Multi-Family
Hsg. Rev. Bonds, VR, 1.06% (LOC; Freddie Mac) 450,000 265
305M Florida State Board of Education Capital Outlay
Rev. Bonds, GO, 5.8%, 6/1/2024 (Prerefunded
6/1/2004) (U.S. Govt. Securities) 314,085 185
- ----------------------------------------------------------------------------------------------------------------------
764,085 450
- ----------------------------------------------------------------------------------------------------------------------
Georgia--7.4%
600M Fulton County Housing Auth. Multi-Family Housing
Rev., VR, 1.2% (LOC; Fannie Mae) 600,000 353
255M Georgia Municipal Association Leasing Program,
COP, 2%, 7/1/2004 (MBIA Insured) 256,205 151
400M Whitfield County Residential Care Facilities Auth.
Rev. Bonds, VR, 1 1/4% (LOC; Wachovia Bank) 400,000 236
- ----------------------------------------------------------------------------------------------------------------------
1,256,205 740
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Idaho--1.2%
$205M Lewiston Orchards District Water Rev. Bonds,
2 1/2%, 6/1/2004 (FSA Insured) $206,139 $122
- ----------------------------------------------------------------------------------------------------------------------
Illinois--8.8%
1,000M Illinois Educational Facilities Auth. Rev. Bonds,
VR, 1.15% (LOC; Northern Trust Company) 1,000,000 589
500M Illinois Housing Dev. Auth. Multi-Family Rev. Bonds,
VR, 1.15% (Freddie Mac Liquidity Facility) 500,000 295
- ----------------------------------------------------------------------------------------------------------------------
1,500,000 884
- ----------------------------------------------------------------------------------------------------------------------
Indiana--5.6%
900M Indianapolis School Building Corp. Rev. Bonds,
6.1%, 1/15/2020 (Prerefunded 7/15/2004)
(U.S. Govt. Securities) 942,271 555
- ----------------------------------------------------------------------------------------------------------------------
Kentucky--7.1%
700M Fort Mitchell Kentucky League of Cities Funding Lease
Program Rev. Bonds,VR, 1.3% (LOC; U.S. Bank, NA) 700,000 412
500M Newport League of Cities Lease Rev. Bonds, VR, 1.3%
(LOC; U.S. Bank, NA) 500,000 295
- ----------------------------------------------------------------------------------------------------------------------
1,200,000 707
- ----------------------------------------------------------------------------------------------------------------------
Massachusetts--1.9%
300M Massachusetts State Water Resource Auth. Rev.
Bonds, 6%, 8/1/2024 (Prerefunded 8/1/2004)
(U.S. Govt. Securities) 313,095 185
- ----------------------------------------------------------------------------------------------------------------------
Missouri--2.9%
500M Harrison County Pollution Control Rev. Bonds, VR,
1.3% (CO; E. I. DuPont deNemours) 500,000 295
- ----------------------------------------------------------------------------------------------------------------------
Nebraska--.6%
100M Nebraska Public Power District Rev. Bonds, 5%,
1/1/2009 (Prerefunded 7/1/2004)
(U.S. Govt. Securities) 102,908 61
- ----------------------------------------------------------------------------------------------------------------------
New Jersey--2.4%
400M Gloucester County Industrial Pollution Control
Financing Auth. Rev. Bonds, VR, 1.15%
(CO; ExxonMobil Corp.) 400,000 236
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
North Carolina--6.0%
$770M Mooresville North Carolina Enterprise Sys. Rev. Bonds,
2%, 5/1/2004 (MBIA Insured) $772,799 $455
250M Union County, COP, 2%, 6/1/2004 (Ambac Insured) 250,981 148
- ----------------------------------------------------------------------------------------------------------------------
1,023,780 603
- ----------------------------------------------------------------------------------------------------------------------
Ohio--8.7%
800M Lucas County Facilities Improvement Rev. Bonds,
VR, 1 1/4% (LOC; Fifth Third Bank) 800,000 471
668M Warren County Health Care Facilities Rev. Bonds,
VR, 1.35% (LOC; Fifth Third Bank) 668,000 394
- ----------------------------------------------------------------------------------------------------------------------
1,468,000 865
- ----------------------------------------------------------------------------------------------------------------------
Oregon--4.6%
100M Oregon State Department of Transportation Rev.
Bonds, 7%, 6/1/2004 (Escrowed to Maturity)
(U.S. Govt. Securities) 102,434 60
650M Portland Sewer Systems Rev. Bonds, 6 1/4%, 6/1/2015
(Prerefunded 6/1/2004) (U.S. Govt. Securities) 670,516 395
- ----------------------------------------------------------------------------------------------------------------------
772,950 455
- ----------------------------------------------------------------------------------------------------------------------
Tennessee--5.3%
200M Clarksville Public Building Auth. Rev. Bonds, VR, 1 1/4%
(LOC; Bank of America) 200,000 118
700M Metropolitan Govt. Nashville & Davidson County Indl.
Dev. Rev. Bonds, VR, 1 1/4% (LOC; Bank of America) 700,000 412
- ----------------------------------------------------------------------------------------------------------------------
900,000 530
- ----------------------------------------------------------------------------------------------------------------------
Texas--4.0%
685M Tarrant County Housing Rev. Bonds, VR, 1.2%
(Fannie Mae Collateral Agreement) 685,000 404
- ----------------------------------------------------------------------------------------------------------------------
Virginia--2.9%
500M Alexandria Industrial Dev. Auth. Rev. Bonds,
VR, 1 1/4% (LOC; Bank of America) 500,000 295
- ----------------------------------------------------------------------------------------------------------------------
Washington--7.0%
300M King County Limited Tax GO Bonds, 6 1/4%, 1/1/2034
(Prerefunded 1/1/2004) (U.S. Govt. Securities) 306,000 180
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Washington (continued)
$200M Lake Tapps Parkway Properties Special Rev. Bonds,
VR, 1.35% (LOC; U.S. Bank, NA) $200,000 $118
400M Yakima-Tieton Irrigation District Rev. Bonds, 2%,
6/1/2004 (FSA Insured) 401,480 237
280M Yakima Water & Sewer Rev. Bonds, 2%, 11/1/2004
(FGIC Insured) 282,006 166
- ----------------------------------------------------------------------------------------------------------------------
1,189,486 701
- ----------------------------------------------------------------------------------------------------------------------
Wisconsin--7.1%
500M Marinette School District GO Bonds, 5%, 3/1/2004
(FSA Insured) 503,321 297
700M Wisconsin State Health & Educational Facilities
Auth. Rev. Bonds, VR, 1.12% (LOC; Bank One) 700,000 412
- ----------------------------------------------------------------------------------------------------------------------
1,203,321 709
- ----------------------------------------------------------------------------------------------------------------------
Wyoming--1.2%
200M Lincoln County Pollution Control Rev. Bonds,
VR, 1.14% (CO; ExxonMobil Corp.) 200,000 118
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments
(cost $17,489,795)+ 103.1% 17,489,795 10,309
Excess of Liabilities Over Other Assets (3.1) (523,697) (309)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $16,966,098 $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 bonds are adjusted periodically and the rates shown are the rates
that were in effect at December 31, 2003. 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.
+ Aggregate cost for federal income tax purposes is the same.
Summary of Abbreviations:
CO Corporate Obligor
COP Certificate of Participation
GO General Obligation
LOC Letter of Credit
VR Variable Rate Bonds
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, 2003. 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 3.8% and 3.0%, Insured Tax Exempt Fund 4.5%
and 3.7%, and Insured Tax Exempt Fund II 5.0% and 4.3%. For the year ended
December 31, 2003, 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 4.8% and 4.0%, California 4.5% and 3.7%,
Colorado 5.1% and 4.3%, Connecticut 4.2% and 3.4%, Florida 4.2% and 3.4%,
Georgia 4.9% and 4.1%, Maryland 4.5% and 3.8%, Massachusetts 4.9% and 4.1%,
Michigan 4.7% and 3.9%, Minnesota 4.9% and 4.2%, Missouri 5.4% and 4.6%,
New Jersey 4.3% and 3.6%, New York 4.4% and 3.6%, North Carolina 5.1% and
4.3%, Ohio 4.8% and 4.0%, Oregon 4.6% and 4.0%, Pennsylvania 4.2% and 3.5%,
and Virginia 4.6% and 3.9%.
The primary factors that drove the Funds' performance were interest rate
volatility and a flattening of the municipal bond yield curve. Despite an
increase in the benchmark U.S. Treasury yields and record municipal bond
issuance, tax-exempt bond yields fell slightly year-over-year.
For the first five months of the year, the Funds benefited from relatively
long durations as interest rates fell to their lowest levels in over 40
years. During the following six months, the Funds' performance was
negatively impacted by rising interest rates during the summer, and the
subsequent efforts to reduce the Funds' interest rate sensitivity.
Reflecting shifts in the yield curve during the year, the Funds with
greater exposure to longer maturities generally performed better than those
with shorter maturities. In particular, the Intermediate, New Jersey and
Pennsylvania Funds held relatively few longer term bonds, compared to their
respective peer groups, which adversely affected performance. The Florida
Fund's total return was reduced as a result of a mandatory extraordinary
redemption feature on one of its holdings. Lastly,
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
several Funds (Insured Tax Exempt, Arizona, Massachusetts, Michigan and
Oregon) benefited from the prerefunding of certain holdings.
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, 2004
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) and the Lehman
Brothers Municipal Bond Index.
INSURED INTERMEDIATE TAX EXEMPT FUND
GRAPH PLOTS
As of December 31, 2003
FIRST INVESTORS
INSURED INTERMEDIATE
TAX EXEMPT LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 9,236 9,483
Dec-95 10,484 11,151
Dec-96 10,910 11,625
Dec-97 11,748 12,693
Dec-98 12,507 13,516
Dec-99 12,571 13,237
Dec-00 13,843 14,784
Dec-01 14,510 15,542
Dec-02 16,348 17,034
Dec-03 16,967 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 3.79% (2.14%)
Five Years 6.29% 5.03%
Ten Years 6.05% 5.43%
S.E.C. 30-Day Yield 1.60%
Class B Shares
One Year 3.02% (0.98%)
Five Years 5.41% 5.09%
Since Inception
(1/12/95) 6.17% 6.17%
S.E.C. 30-Day Yield 0.95%
The graph compares a $10,000 investment in the First Investors Insured
Intermediate Tax Exempt Fund (Class A shares) beginning 12/31/93 with a
theoretical investment in the Lehman Brothers Municipal Bond Index (the
"Index"). The Index is a total return performance benchmark for the
investment grade tax exempt bond market. The Index does 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 the Index.
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 12/31/03)
include the reinvestment of all dividends and 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 and 1/12/95, the maximum sales charges were 6.25% and
3.5%, respectively). 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 Return for One Year,
Five Years and Ten Years would have been (2.48%), 4.52% and 4.73%,
respectively, and the S.E.C. 30-Day Yield for December 2003 would have been
1.24%. The Class B "S.E.C. Standardized" Average Annual Total Return for
One Year, Five Years and Since Inception would have been (1.35%), 4.70% and
5.71%, respectively, and the S.E.C. 30-Day Yield for December 2003 would
have been 0.57%. Results represent past performance and do not indicate
future results. 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 Bond Index figures
are from Lehman Brothers, Inc. and all other figures are from First
Investors Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--100.5%
Alabama--8.1%
$1,000M Auburn University General Fee Rev. 3% 6/1/2007 $1,032,500 $148
1,000M Auburn University Housing & Dining Rev.
3 1/4% 6/1/2008 1,036,250 148
Jefferson County School Warrants General Obligations:
1,000M 5% 2/1/2009* 1,275,244 183
1,145M 5% 4/1/2009 1,127,500 161
1,125M Montgomery Waterworks & Sanitation Sewer Rev.
3 1/4% 9/1/2008 1,162,969 167
- ----------------------------------------------------------------------------------------------------------------------
5,634,463 807
- ----------------------------------------------------------------------------------------------------------------------
Alaska--.8%
500M Alaska Intl. Airport Rev. Series "B" 5 3/4% 10/1/2015 575,000 82
- ----------------------------------------------------------------------------------------------------------------------
Arizona--6.0%
300M Navajo County Unified School District #32 GO
(Blue Ridge) 5% 7/1/2012 338,250 48
500M Pima County Unified School District #12 GO
(Sunnyside) 5% 7/1/2012 563,750 81
1,000M Salt River Project Agric. Impt. & Pwr. District
5% 12/1/2008 1,113,750 160
1,000M Tucson Airport Auth. 4% 6/1/2008 1,073,750 154
1,000M University of Arizona COP Series "A" 4 1/8% 6/1/2007 1,071,250 153
- ----------------------------------------------------------------------------------------------------------------------
4,160,750 596
- ----------------------------------------------------------------------------------------------------------------------
Arkansas--3.1%
1,000M Beaver Water District Benton & Washington Counties
Water Revenue 4% 11/15/2009 1,067,500 153
1,000M University of Arkansas Various Facs.
(Fayetteville Campus) 5% 12/1/2008 1,117,500 160
- ----------------------------------------------------------------------------------------------------------------------
2,185,000 313
- ----------------------------------------------------------------------------------------------------------------------
California--1.6%
1,000M California State Department Wtr. Pwr. Supply Rev.
5 1/4% 5/1/2010 1,132,500 162
- ----------------------------------------------------------------------------------------------------------------------
Colorado--1.6%
1,000M Pueblo County School District #60 GO (Pueblo)
5% 12/15/2010 1,133,750 162
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Connecticut--8.0%
$1,000M Connecticut State Series "C" GO 5% 12/15/2007 $1,110,000 $159
1,200M Connecticut State Special Tax Oblig. 5% 10/1/2007 1,326,000 190
1,000M Hartford GO 3 1/2% 12/1/2008 1,052,500 151
1,000M New Haven Series "A" GO 4% 11/1/2007 1,071,250 153
1,000M Waterbury GO 4 1/2% 2/1/2006 1,060,000 152
- ----------------------------------------------------------------------------------------------------------------------
5,619,750 805
- ----------------------------------------------------------------------------------------------------------------------
District of Columbia--4.0%
1,000M District of Columbia COP 5 1/4% 1/1/2010 1,128,750 162
District of Columbia General Obligations:
1,000M Series "A" 5 1/4% 6/1/2008* 1,135,000 163
500M Series "C" 5% 6/1/2008 547,500 78
- ----------------------------------------------------------------------------------------------------------------------
2,811,250 403
- ----------------------------------------------------------------------------------------------------------------------
Florida--3.0%
175M Dade County Aviation Rev. 6% 10/1/2009 205,406 30
700M Florida State Municipal Power Agy. Rev. (Stanton Proj.)
5 1/2% 10/1/2011 811,125 116
1,000M Tampa Solid Waste Sys. Rev. Series "A" 4.3% 10/1/2007 1,073,750 154
- ----------------------------------------------------------------------------------------------------------------------
2,090,281 300
- ----------------------------------------------------------------------------------------------------------------------
Georgia--1.5%
1,000M Athens Housing Auth. Lease Rev. (Univ. of
Georgia-East Campus) 4% 12/1/2009 1,073,750 154
- ----------------------------------------------------------------------------------------------------------------------
Hawaii--1.6%
1,000M Maui County GO 5% 9/1/2007 1,102,500 158
- ----------------------------------------------------------------------------------------------------------------------
Illinois--6.5%
1,000M Chicago O'Hare Intl. Airport Rev. Series "E"
3 1/2% 1/1/2006 1,031,250 148
1,000M Chicago Series "A" 6 3/4% 7/1/2010* 1,245,000 178
Illinois State General Obligations:
1,000M 5% 6/1/2008 1,108,750 159
1,000M 5 3/4% 6/1/2010* 1,176,250 169
- ----------------------------------------------------------------------------------------------------------------------
4,561,250 654
- ----------------------------------------------------------------------------------------------------------------------
Indiana--1.8%
100M Boone County Hosp. Assoc. 5% 1/15/2011 110,875 16
1,000M New Albany Floyd County Sch. Bldg. Corp.
5 3/4% 7/15/2020 1,130,000 162
- ----------------------------------------------------------------------------------------------------------------------
1,240,875 178
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Iowa--1.6%
$1,000M Iowa Financial Auth. Correctional Facility
4 1/2% 6/15/2009 $1,090,000 $156
- ----------------------------------------------------------------------------------------------------------------------
Kansas--1.6%
1,060M Pottawatomie County School Dist. #320, 4% 9/1/2008 1,130,225 162
- ----------------------------------------------------------------------------------------------------------------------
Kentucky--1.2%
725M Kentucky State Property & Buildings Rev. Series "A"
(Proj. #69) 5 1/4% 8/1/2010 828,313 119
- ----------------------------------------------------------------------------------------------------------------------
Louisiana--5.8%
1,000M Lafayette Pub. Pwr. Auth. Elec. Rev. Series "A"
5% 11/1/2006 1,088,750 156
1,145M Louisiana Hsg. Fin. Agy. Mtg. Rev. (Section 8)
1.95% 6/1/2006 1,146,431 165
1,000M Louisiana Pub. Facs. Auth. Rev. 4 1/2% 10/15/2010 1,090,000 156
640M New Orleans GO 5 1/8% 12/1/2010 727,200 104
- ----------------------------------------------------------------------------------------------------------------------
4,052,381 581
- ----------------------------------------------------------------------------------------------------------------------
Maine--1.6%
1,000M Maine Municipal Bond Bank Series "A" 4 3/4% 11/1/2006 1,082,500 155
- ----------------------------------------------------------------------------------------------------------------------
Massachusetts--.5%
300M Massachusetts State Development Fin. Agy.
5 5/8% 1/1/2012 340,875 49
- ----------------------------------------------------------------------------------------------------------------------
Michigan--7.1%
1,000M Brighton Area School District GO Zero Coupon 5/1/2005
(prerefunded at $49.325)* 485,000 69
500M Detroit City School District School Building &
Site Improvement Series "A" GO 5% 5/1/2008 555,000 80
1,000M Michigan State Bldg. Auth. Rev. Series "I"
5% 10/1/2007 1,105,000 158
1,000M South Central Power Supply Systems Rev.
5% 11/1/2010 1,123,750 161
1,000M Walled Lake Cons. Sch. Dist. 5 1/2% 5/1/2007* 1,116,250 160
500M Wayne Charter County Airport Rev. Series "C"
5% 12/1/2012 555,625 80
- ----------------------------------------------------------------------------------------------------------------------
4,940,625 708
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Mississippi--1.6%
$1,000M Gulfport GO 5% 3/1/2010 $1,121,250 $161
- ----------------------------------------------------------------------------------------------------------------------
New Jersey--6.2%
Jersey City General Obligations:
1,000M Gen. Improvement Series "B" 4% 9/1/2006 1,057,500 151
1,000M Sch. Improvement Series "B" 5% 3/1/2010 1,123,750 161
1,025M Newark GO 4% 7/15/2006 1,080,094 155
1,000M Northwest Bergen Cnty. Utils. Auth. Rev. 4% 7/15/2011 1,052,500 151
- ----------------------------------------------------------------------------------------------------------------------
4,313,844 618
- ----------------------------------------------------------------------------------------------------------------------
New York--4.6%
1,000M Erie County Indl. Dev. Agy. Sch. Fac. Rev.
(City of Buffalo Proj.) 4% 5/1/2006 1,052,500 151
New York City General Obligations:
500M 5 1/4% 8/1/2008 558,750 80
150M 5 1/2% 8/1/2012 171,562 25
New York State Dorm. Auth. Revenue:
1,000M School District Financing Series "E" 5% 10/1/2010 1,126,250 161
245M United Cerebral Palsy Affiliation 4 3/4% 7/1/2009 270,725 39
- ----------------------------------------------------------------------------------------------------------------------
3,179,787 456
- ----------------------------------------------------------------------------------------------------------------------
North Carolina--1.5%
1,000M Lincoln County COP 4% 6/1/2010 1,067,500 153
- ----------------------------------------------------------------------------------------------------------------------
Ohio--4.9%
1,000M Cincinnati City School District GO 4% 12/1/2007 1,073,750 154
Ohio State Bldg. Auth. Facilities Revenue:
1,000M 5 1/2% 10/1/2008 1,140,000 163
585M 5 1/4% 10/1/2010 669,094 96
500M Wright State University 4% 5/1/2007 533,125 77
- ----------------------------------------------------------------------------------------------------------------------
3,415,969 490
- ----------------------------------------------------------------------------------------------------------------------
Oklahoma--.4%
250M Grady County Indl. Dev. Auth. Rev. 5 3/8% 11/1/2009 286,875 41
- ----------------------------------------------------------------------------------------------------------------------
Oregon--2.4%
500M Oregon State Department of Trans. Rev. (Light Rail
Ext. Westside) 5% 6/1/2009 562,500 81
1,000M Yamhill County School District #029J (Newburg) GO
5% 6/15/2010 1,130,000 162
- ----------------------------------------------------------------------------------------------------------------------
1,692,500 243
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Pennsylvania--2.7%
Philadelphia Auth. Indl. Dev. Lease Revenue:
$500M 5 1/4% 10/1/2009 $568,125 $81
150M 5 1/4% 10/1/2010 171,000 24
1,000M Philadelphia Muni. Auth. Rev. Series "B"
5 1/4% 11/15/2011 1,141,250 164
- ----------------------------------------------------------------------------------------------------------------------
1,880,375 269
- ----------------------------------------------------------------------------------------------------------------------
Puerto Rico--1.6%
1,000M Puerto Rico Highway & Trans. Auth. Series "AA"
5% 7/1/2026 1,125,000 161
- ----------------------------------------------------------------------------------------------------------------------
South Carolina--2.5%
1,500M South Carolina Transportation Series "A"
5 1/2% 10/1/2009* 1,743,750 250
- ----------------------------------------------------------------------------------------------------------------------
Virginia--3.6%
1,110M Loudoun Cnty. Indl. Dev. Auth. Public Safety Fac.
Lease Rev. Series "A" 5% 12/15/2009 1,254,300 180
1,120M Southwest Regl. Jail Authority 4 1/2% 9/1/2009 1,223,600 175
- ----------------------------------------------------------------------------------------------------------------------
2,477,900 355
- ----------------------------------------------------------------------------------------------------------------------
West Virginia--1.5%
1,000M West Virginia State Water Dev. Auth. Series "B"
2 5/8% 11/1/2007 1,017,500 146
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $68,292,256) 100.5% 70,108,288 10,047
Excess of Liabilities Over Other Assets (.5) (325,713) (47)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $69,782,575 $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 3.945% with Citibank, N.A. 11/12/2013 $500M $(12,471)
======================================================================================================================
* 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
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) and the Lehman Brothers
Municipal Bond Index.
INSURED TAX EXEMPT FUND
GRAPH PLOTS
As of December 31, 2003
FIRST INVESTORS
INSURED TAX LEHMAN BROTHERS
EXEMPT FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 9,053 9,483
Dec-95 10,911 11,151
Dec-96 11,360 11,625
Dec-97 12,530 12,693
Dec-98 13,456 13,516
Dec-99 13,198 13,237
Dec-00 14,980 14,784
Dec-01 15,948 15,542
Dec-02 17,741 17,034
Dec-03 18,635 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.50% (1.52%)
Five Years 5.14% 3.91%
Ten Years 5.16% 4.54%
S.E.C. 30-Day Yield 2.40%
Class B Shares
One Year 3.70% (0.30%)
Five Years 4.37% 4.03%
Since Inception
(1/12/95) 5.71% 5.71%
S.E.C. 30-Day Yield 1.82%
The graph compares a $10,000 investment in the First Investors Insured Tax
Exempt Fund, Inc. (Class A shares) beginning 12/31/93 with a theoretical
investment in the Lehman Brothers Municipal Bond Index (the "Index"). The
Index is a total return performance benchmark for the investment grade tax
exempt bond market. The Index does 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 the Index. 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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (1.60%),
3.85% and 4.52%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 2.26%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (0.39%), 3.97% and 5.68%, respectively, and the S.E.C. 30-Day Yield
for December 2003 would have been 1.68%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--98.7%
Alabama--.8%
$5,835M Alabama Water Pollution Control Auth. 6% 8/15/2014 $6,790,481 $77
- ----------------------------------------------------------------------------------------------------------------------
Alaska--.7%
1,500M Alaska Intl. Airport Rev. Series "B" 5 3/4% 10/1/2015 1,725,000 20
5,000M North Slope Boro GO Zero Coupon 6/30/2005 4,887,500 55
- ----------------------------------------------------------------------------------------------------------------------
6,612,500 75
- ----------------------------------------------------------------------------------------------------------------------
Arizona--1.6%
8,550M Arizona State Municipal Financing Program COP
7.7% 8/1/2010 10,644,750 120
1,000M Glendale Water & Sewer Revenue 5% 7/1/2021 1,052,500 12
Phoenix Civic Improvement Corp. Water Sys. Revenue:
1,000M 5 1/2% 7/1/2019 1,115,000 13
1,000M 5 1/2% 7/1/2020 1,108,750 12
- ----------------------------------------------------------------------------------------------------------------------
13,921,000 157
- ----------------------------------------------------------------------------------------------------------------------
California--4.4%
5,500M California State Dept. Water Resource Pwr. Supply
Rev. Series "A" 5 3/8% 5/1/2018 6,056,875 68
2,000M Colton Joint Unified School Dist. GO Series "A"
5 3/8% 8/1/2026 2,147,500 24
10,000M Los Angeles Community College Dist. GO Series "A"
5 1/2% 8/1/2021 10,962,500 124
7,070M Los Angeles Water & Power Sys. Rev. Series "A"
5% 7/1/2020 7,494,200 84
4,275M Newport Mesa Unified School Dist. GO Election
of 2000 5% 8/1/2025 4,403,250 50
5,265M Oakland Unified School Dist. Alameda County GO
5 1/4% 8/1/2020 5,673,038 64
2,000M Sacramento City Unified School Dist. GO Series "A"
5% 7/1/2027 2,060,000 23
- ----------------------------------------------------------------------------------------------------------------------
38,797,363 437
- ----------------------------------------------------------------------------------------------------------------------
Colorado--.2%
2,000M Denver City & County Airport Rev. 5 1/2% 11/15/2016 2,230,000 25
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Connecticut--2.2%
Connecticut State Special Tax Obligation Rev.
Transportation Infrastructure:
$9,000M 6 1/8% 9/1/2012 $10,743,750 $121
5,450M 5% 9/1/2019 5,831,500 66
3,000M 5% 9/1/2022 3,142,500 35
- ----------------------------------------------------------------------------------------------------------------------
19,717,750 222
- ----------------------------------------------------------------------------------------------------------------------
District of Columbia--1.8%
Washington, DC General Obligations:
5,000M Series "B" 6% 6/1/2021 5,993,750 68
9,615M Series "E" 6% 6/1/2012 9,879,509 111
- ----------------------------------------------------------------------------------------------------------------------
15,873,259 179
- ----------------------------------------------------------------------------------------------------------------------
Florida--.2%
1,395M West Coast Regl. Wtr. Supply Rev. 10.4% 10/1/2010* 1,902,431 21
- ----------------------------------------------------------------------------------------------------------------------
Georgia--11.8%
15,000M Atlanta Airport Rev. Series "A" 5 1/2% 1/1/2010* 17,400,000 196
9,040M Atlanta Water & Wastewater Rev. Series "A"
5 1/2% 11/1/2019 10,576,800 119
2,540M Fulton Cnty. Dev. Auth. Rev. Klaus Parking &
Family Hsg. Projs. (Georgia Tech. Facs.)
5 1/4% 11/1/2021 2,730,500 31
6,160M Fulton County Water & Sewer Rev. 6 3/8% 1/1/2014 7,476,700 84
Metropolitan Atlanta Rapid Transit Authority:
7,500M 6 3/4% 7/1/2004* 7,857,825 89
20,450M 6 1/4% 7/1/2011 24,718,938 279
28,305M 6% 7/1/2013 34,213,669 386
- ----------------------------------------------------------------------------------------------------------------------
104,974,432 1,184
- ----------------------------------------------------------------------------------------------------------------------
Hawaii--1.5%
Hawaii State General Obligations:
5,500M 6% 10/1/2009 6,448,750 73
6,000M 6% 10/1/2010 7,125,000 80
- ----------------------------------------------------------------------------------------------------------------------
13,573,750 153
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Illinois--19.3%
Chicago Board of Education Lease Certificates of
Participation Series "A":
$5,000M 6% 1/1/2016 $6,031,250 $68
36,200M 6% 1/1/2020 43,078,000 486
Chicago General Obligations:
7,000M 6% 7/1/2005* 7,621,250 86
16,660M 6 1/8% 7/1/2005* 18,180,225 205
Chicago O'Hare International Airport Revenue:
14,570M 6 3/8% 1/1/2012 15,519,818 175
10,000M 6 3/8% 1/1/2015 10,641,600 120
16,750M Illinois Development Fin. Auth. Poll. Cntl. Rev.
6 3/4% 3/1/2015 18,069,063 204
Illinois Development Finance Auth. Revenue
(Rockford School #205):
5,000M 6.6% 2/1/2010 6,043,750 68
3,000M 6.65% 2/1/2011 3,682,500 42
Illinois State First Series General Obligations:
5,250M 6 1/8% 1/1/2010* 6,227,813 70
4,500M 5 1/2% 2/1/2016 5,068,125 57
8,000M 5 1/2% 5/1/2017 8,930,000 101
12,000M 5 1/2% 5/1/2018 13,320,000 150
3,000M Metro Pier & Exposition Auth. (McCormick
Place Expansion) Series "B" 5 1/2% 6/15/2016 3,416,250 38
4,000M Regional Transportation Auth. 7 3/4% 6/1/2019 5,510,000 62
- ----------------------------------------------------------------------------------------------------------------------
171,339,644 1,932
- ----------------------------------------------------------------------------------------------------------------------
Indiana--.7%
Indiana State Office Building Commission Facilities
Rev. New Castle Correctional Facility:
2,515M 5 1/2% 7/1/2018 2,807,369 32
3,000M 5 1/2% 7/1/2019 3,326,250 37
- ----------------------------------------------------------------------------------------------------------------------
6,133,619 69
- ----------------------------------------------------------------------------------------------------------------------
Kansas--.3%
2,475M Wyandotte County Unified School District #500 GO
5% 9/1/2020 2,604,937 29
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Louisiana--1.2%
$5,000M Louisiana State GO 6% 5/1/2004* $5,180,800 $59
12,850M Regional Transportation Auth. Zero Coupon
12/1/2021 5,268,500 59
- ----------------------------------------------------------------------------------------------------------------------
10,449,300 118
- ----------------------------------------------------------------------------------------------------------------------
Massachusetts--4.8%
10,025M Boston Water & Sewer Rev. 5 3/4% 11/1/2013 11,816,967 133
2,885M Massachusetts Housing Finance Agy. 6% 12/1/2012 3,050,887 35
3,000M Massachusetts State Construction Loan GO Series "B"
5 1/2% 3/1/2012* 3,476,250 39
20,550M Massachusetts State GO 6% 8/1/2009 24,017,812 271
- ----------------------------------------------------------------------------------------------------------------------
42,361,916 478
- ----------------------------------------------------------------------------------------------------------------------
Michigan--2.6%
5,000M Detroit Sewer Disposal Revenue Series "A"
5% 7/1/2020 5,300,000 60
10,000M Michigan State Environment Protection Prog. GO
6 1/4% 11/1/2012 11,912,500 134
4,500M Monroe County Economic Dev. Corp.
(Detroit Edison Co.) 6.95% 9/1/2022 5,940,000 67
- ----------------------------------------------------------------------------------------------------------------------
23,152,500 261
- ----------------------------------------------------------------------------------------------------------------------
Minnesota--1.6%
Minneapolis & St. Paul Metro Airports Comm.
Airport Rev. Series "C":
3,380M 5 1/2% 1/1/2017 3,772,925 43
3,315M 5 1/2% 1/1/2018 3,683,794 41
5,770M 5 1/2% 1/1/2019 6,383,062 72
- ----------------------------------------------------------------------------------------------------------------------
13,839,781 156
- ----------------------------------------------------------------------------------------------------------------------
Missouri--3.7%
Missouri State Health & Educational Facilities Authority:
BJC Health System Series "A":
6,840M 6 3/4% 5/15/2010 8,387,550 95
10,175M 6 3/4% 5/15/2011 12,604,281 142
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Missouri (continued)
St. Louis Missouri Airport Rev. Series "A":
$4,135M 5 5/8% 7/1/2017 $4,626,031 $52
3,620M 5 5/8% 7/1/2018 4,036,300 45
3,030M 5 5/8% 7/1/2019 3,363,300 38
- ----------------------------------------------------------------------------------------------------------------------
33,017,462 372
- ----------------------------------------------------------------------------------------------------------------------
Nevada--4.3%
Clark County Nevada Bond Bank General Obligations:
8,195M 5 1/2% 6/1/2017 9,178,400 104
8,645M 5 1/2% 6/1/2018 9,574,338 108
Las Vegas New Convention & Visitors Auth. Revenue:
3,500M 5 3/4% 7/1/2015 4,029,375 45
2,500M 5 3/4% 7/1/2017 2,846,875 32
Truckee Meadows Nevada Water Authority:
6,115M 5 1/2% 7/1/2017 6,825,869 77
2,605M 5 1/2% 7/1/2018 2,891,550 33
2,500M 5 1/2% 7/1/2019 2,768,750 31
- ----------------------------------------------------------------------------------------------------------------------
38,115,157 430
- ----------------------------------------------------------------------------------------------------------------------
New Jersey--2.2%
2,200M New Jersey State Educ. Facs. Auth. Rev. Public Library
PJ Grant 5 1/2% 9/1/2018 2,453,000 28
10,000M New Jersey State Trans. Corp. COP Fed. Trans. Admin.
Grants Series "A" 5 3/4% 9/15/2009* 11,600,000 131
5,000M New Jersey Turnpike Authority Revenue Series "A"
5% 1/1/2020 5,287,500 59
- ----------------------------------------------------------------------------------------------------------------------
19,340,500 218
- ----------------------------------------------------------------------------------------------------------------------
New Mexico--.0%
295M New Mexico Mortgage Finance Auth. Single-Family
Mtge. 8% 1/1/2017 295,000 3
- ----------------------------------------------------------------------------------------------------------------------
New York--7.5%
New York City General Obligations:
5,000M Series "C" 5 1/2% 3/15/2015 5,643,750 64
3,275M Series "G" 5 5/8% 8/1/2020 3,651,625 41
22,250M New York City Municipal Water Fin. Auth. Rev.
6% 6/15/2021 27,061,562 305
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
New York (continued)
New York State Dorm. Auth. Rev. New York University:
$5,000M 5 7/8% 5/15/2017 $6,043,750 $68
10,000M Series "A" 5 3/4% 7/1/2027 11,750,000 133
5,950M New York State Housing Finance Agy. Rev.
5 7/8% 11/1/2010 6,470,625 73
5,000M Suffolk County Judicial Facs. Agy. (John P. Cohalan
Complex) 5 3/4% 10/15/2013 5,806,250 65
- ----------------------------------------------------------------------------------------------------------------------
66,427,562 749
- ----------------------------------------------------------------------------------------------------------------------
North Carolina--2.4%
North Carolina Municipal Power Agency
(Catawba Electric):
8,950M 6% 1/1/2010 10,527,438 119
8,945M 6% 1/1/2011 10,566,281 119
- ----------------------------------------------------------------------------------------------------------------------
21,093,719 238
- ----------------------------------------------------------------------------------------------------------------------
North Dakota--1.5%
10,500M Mercer County Pollution Control Rev. (Basin Elec.
Pwr. Coop.) 7.2% 6/30/2013 13,190,625 149
- ----------------------------------------------------------------------------------------------------------------------
Ohio--.8%
6,000M Jefferson County Jail Construction GO 5 3/4% 12/1/2019 7,230,000 82
- ----------------------------------------------------------------------------------------------------------------------
Oklahoma--.7%
5,540M Oklahoma State Ind. Dev. Auth. (Intregris Hlth. Sys.)
6% 8/15/2017 6,315,600 71
- ----------------------------------------------------------------------------------------------------------------------
Oregon--.7%
Portland Urban Renewal & Redev. South Park
Blocks Series "A":
2,695M 5 3/4% 6/15/2015 3,132,938 35
2,630M 5 3/4% 6/15/2016 3,040,938 35
- ----------------------------------------------------------------------------------------------------------------------
6,173,876 70
- ----------------------------------------------------------------------------------------------------------------------
Pennsylvania--3.2%
3,000M Allegheny County Sanitation Auth. Sewer Rev.
5 1/2% 12/1/2030 3,251,250 37
5,000M Pennsylvania State GO 6 3/4% 11/15/2004* 5,317,150 60
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Pennsylvania (continued)
$4,925M Philadelphia Housing Auth. Capital Fund Prog. Rev.
Series "A" 5 1/2% 12/1/2019 $5,528,312 $62
12,050M Pittsburgh Water & Sewer Auth. Rev. 6 1/2% 9/1/2013 14,716,063 166
- ----------------------------------------------------------------------------------------------------------------------
28,812,775 325
- ----------------------------------------------------------------------------------------------------------------------
Rhode Island--.5%
4,000M Rhode Island State Construction Capital Dev. GO
Series "A" 5 1/2% 7/15/2018 4,480,000 50
- ----------------------------------------------------------------------------------------------------------------------
South Carolina--1.5%
11,500M South Carolina Transportation Infrastructure Bank
Rev. Series "A" 5 1/2% 10/1/2009* 13,368,750 151
- ----------------------------------------------------------------------------------------------------------------------
South Dakota--.5%
3,855M South Dakota Hlth. & Edl. Facs. Auth. (McKennan Hosp.)
7 5/8% 7/1/2014 4,645,275 52
- ----------------------------------------------------------------------------------------------------------------------
Tennessee--.5%
3,500M Memphis-Shelby County Sports Auth. Rev.
(Memphis Arena Proj.) Series "A" 5 1/2% 11/1/2016 3,998,750 45
- ----------------------------------------------------------------------------------------------------------------------
Texas--8.4%
16,000M Austin Texas Utilities Systems Rev. 6% 11/15/2013 18,920,000 213
5,000M Bexar County Health Facs. (Baptist Memorial Hosp.)
6 3/4% 8/15/2004* 5,273,250 59
Harris County Toll Road Senior Liens General
Obligations Series "A":
11,065M 6 1/2% 8/15/2012 13,609,950 154
7,305M 6 1/2% 8/15/2013 9,049,069 102
Houston Water Conveyance System
Certificates of Participations:
2,250M 6 1/4% 12/15/2012 2,739,375 31
4,705M 6 1/4% 12/15/2013 5,769,506 65
4,950M 6 1/4% 12/15/2014 6,094,687 69
6,035M 6 1/4% 12/15/2015 7,483,400 84
5,300M Rio Grande Valley Hlth. Facility Dev. Corp.
(Valley Baptist Med. Ctr.) 6.4% 8/1/2012 5,372,716 61
- ----------------------------------------------------------------------------------------------------------------------
74,311,953 838
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utah--.3%
$1,765M Provo Utah Electric System Rev. 10 3/8% 9/15/2015 $2,497,475 $28
- ----------------------------------------------------------------------------------------------------------------------
Virginia--.4%
3,310M Norfolk Airport Auth. Rev. Series "A" 5% 7/1/2022 3,425,850 39
- ----------------------------------------------------------------------------------------------------------------------
Washington--2.1%
Snohomish County Washington Ltd. Tax
General Obligations:
7,975M 5 1/2% 12/1/2017 8,932,000 101
8,410M 5 1/2% 12/1/2018 9,366,638 105
- ----------------------------------------------------------------------------------------------------------------------
18,298,638 206
- ----------------------------------------------------------------------------------------------------------------------
Wisconsin--1.8%
12,000M Superior Wisconsin Ltd. Oblig. Rev. (Midwest Energy)
6.9% 8/1/2021 15,870,000 179
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $769,647,465) 98.7% 875,183,630 9,868
Other Assets, Less Liabilities 1.3 11,676,722 132
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $886,860,352 $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 3.945% with Citibank, N.A. 11/12/2013 $44,000M $(1,097,396)
======================================================================================================================
* 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
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) and the Lehman Brothers
Municipal Bond Index.
INSURED TAX EXEMPT FUND II
GRAPH PLOTS
As of December 31, 2003
FIRST INVESTORS
INSURED TAX LEHMAN BROTHERS
EXEMPT FUND II MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 9,053 9,483
Dec-95 10,911 11,151
Dec-96 11,360 11,625
Dec-97 12,530 12,693
Dec-98 13,456 13,516
Dec-99 13,198 13,237
Dec-00 14,980 14,784
Dec-01 15,948 15,542
Dec-02 17,741 17,034
Dec-03 18,635 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 5.04% (0.99%)
Five Years 6.73% 5.47%
Ten Years 7.05% 6.42%
S.E.C. 30-Day Yield 2.76%
Class B Shares
One Year 4.26% 0.26%
Since Inception
(12/18/00) 6.96% 6.10%
S.E.C. 30-Day Yield 2.18%
The graph compares a $10,000 investment in the First Investors Insured Tax
Exempt Fund II (Class A shares) beginning 12/31/93 with a theoretical
investment in the Lehman Brothers Municipal Bond Index (the "Index"). The
Index is a total return performance benchmark for the investment grade tax
exempt bond market. The Index does 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 the Index. 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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (1.42%),
4.78% and 5.49%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 2.39%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year and Since Inception would have been
(0.19%) and 5.66%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 1.78%. Results represent past performance and do not
indicate future results. 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
Bond Index figures are from Lehman Brothers, Inc. and all other figures are
from First Investors Management Company, Inc.
Portfolio Of Investments
FIRST INVESTORS INSURED TAX EXEMPT FUND II
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--95.7%
Alabama--.3%
$250M Coffee County Public Bldg. Auth. 6.1% 9/1/2006* $283,437 $29
- ----------------------------------------------------------------------------------------------------------------------
Alaska--1.2%
1,000M Alaska Intl. Airport Rev. Series "B" 5 3/4% 10/1/2015 1,150,000 118
- ----------------------------------------------------------------------------------------------------------------------
Arizona--7.1%
1,000M Arizona State Trans. Brd. Hwy. Rev. 5 1/4% 7/1/2020 1,085,000 111
1,745M Casa Grande Excise Tax 5% 4/1/2020 1,856,244 190
250M Maricopa County Ind. Dev. Hosp. Facs. Rev.
(Samaritan Hlth. Svcs.) 7% 12/1/2016 325,312 33
Oro Valley Muni. Ppty. Water & Sewer:
1,000M 5% 7/1/2023 1,043,750 107
2,525M 5% 7/1/2028 2,597,594 266
- ----------------------------------------------------------------------------------------------------------------------
6,907,900 707
- ----------------------------------------------------------------------------------------------------------------------
California--9.7%
940M California Community College Financing Auth.
Lease Rev. 5% 8/1/2019 1,004,625 103
3,000M California State Dept. Water Res. Supply Rev.
Series "A" 5 3/8% 5/1/2018 3,303,750 338
1,330M Grant Junction Unified High School District GO
5 1/4% 8/1/2021 1,433,075 147
690M Jefferson High School District GO (San Mateo Cnty.)
6 1/4% 2/1/2017 851,287 87
1,160M Palm Desert Financing Auth. Tax Rev. 5% 8/1/2020 1,236,850 127
500M San Francisco City & County Redev. Agy.
(Moscone Ctr.) 6 3/4% 7/1/2015 522,970 53
1,000M Santa Clara Electric Rev. 5 1/4% 7/1/2019 1,091,250 112
- ----------------------------------------------------------------------------------------------------------------------
9,443,807 967
- ----------------------------------------------------------------------------------------------------------------------
Colorado--2.7%
1,500M Adams & Arapahoe Cntys. Jnt. School District #28J
Aurora Series "A" 5 1/8% 12/1/2021 1,595,625 163
1,000M Lafayette Water Rev. 5 1/4% 12/1/2023 1,068,750 110
- ----------------------------------------------------------------------------------------------------------------------
2,664,375 273
- ----------------------------------------------------------------------------------------------------------------------
Portfolio Of Investments (continued)
FIRST INVESTORS INSURED TAX EXEMPT FUND II
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
District of Columbia--3.7%
$1,455M District of Columbia GO 5 1/4% 6/1/2014 $1,602,319 $164
1,885M Metropolitan Washington DC Airport Auth.
Sys. Rev. 5 1/4% 10/1/2019 2,052,294 210
- ----------------------------------------------------------------------------------------------------------------------
3,654,613 374
- ----------------------------------------------------------------------------------------------------------------------
Florida--6.1%
1,000M Broward County Water & Sewer Rev. 5% 10/1/2021 1,047,500 107
335M Cocoa Water & Sewer Rev. 5 3/4% 10/1/2007* 382,737 39
1,365M Florida St. Govt. Lehigh Utility System Rev.
5% 10/1/2020 1,446,900 148
1,275M Sarasota County Util. Sys. Rev. 5 1/4% 10/1/2020 1,378,594 141
1,580M Tampa Util. Tax & Spl. Rev. 5 1/4% 10/1/2021 1,698,500 174
- ----------------------------------------------------------------------------------------------------------------------
5,954,231 609
- ----------------------------------------------------------------------------------------------------------------------
Georgia--2.2%
1,000M Fulton Cnty. Dev. Auth. Rev. Klaus Parking &
Family Hsg. Projs. (Georgia Tech. Facs.)
5 1/4% 11/1/2021 1,075,000 110
1,000M Georgia Municipal Association, Inc. (City Court
Atlanta Proj.) 5 1/8% 12/1/2021 1,056,250 108
- ----------------------------------------------------------------------------------------------------------------------
2,131,250 218
- ----------------------------------------------------------------------------------------------------------------------
Illinois--.6%
500M Chicago GO 6% 7/1/2005* 544,375 56
- ----------------------------------------------------------------------------------------------------------------------
Indiana--3.9%
1,030M Baugo School Bldg. Corp. 5 1/2% 1/15/2019 1,136,863 116
1,105M Merrillville Multi-School Building Corp. GO
5 1/2% 7/15/2017 1,234,838 126
1,250M Zionsville Community Schools Bldg. Corp. GO
5 3/4% 7/15/2017 1,423,438 146
- ----------------------------------------------------------------------------------------------------------------------
3,795,139 388
- ----------------------------------------------------------------------------------------------------------------------
Kentucky--1.1%
1,000M Kentucky State Ppty. & Buildings Commn. Rev.
5 1/4% 8/1/2019 1,091,250 112
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Louisiana--3.8%
$1,845M Louisiana Local Govt. Env. Facs. & Commission
5 1/4% 10/1/2021 $1,969,538 $202
525M Louisiana Public Facs. Auth. Rev. (Dillard Univ. Proj.)
Series "A" 5 1/8% 8/1/2020 555,844 57
1,075M Louisiana St. Gas & Fuel Tax Rev. 5 3/8% 6/1/2017 1,195,938 122
- ----------------------------------------------------------------------------------------------------------------------
3,721,320 381
- ----------------------------------------------------------------------------------------------------------------------
Maine--.3%
250M Maine Municipal Bond Bank 6 1/2% 11/1/2004* 266,040 27
- ----------------------------------------------------------------------------------------------------------------------
Massachusetts--2.2%
1,000M Springfield GO 5 1/4% 1/15/2022 1,073,750 110
1,000M University Bldg. Auth. Proj. Rev. 5 1/4% 11/1/2023 1,065,000 109
- ----------------------------------------------------------------------------------------------------------------------
2,138,750 219
- ----------------------------------------------------------------------------------------------------------------------
Michigan--12.6%
1,000M Detroit City School Dist. GO (Sch. Bldg. & Site Impt.)
5 1/2% 5/1/2018 1,118,750 114
1,105M Grand Rapids Cmnty. College 5 1/4% 5/1/2021 1,187,875 122
Howell Public Schools General Obligations:
4,300M Building & Site 5% 5/1/2020 4,552,625 466
1,000M Zero Coupon 5/1/2006* 440,000 45
1,300M Lansing Community College 5% 5/1/2020 1,376,375 141
1,000M Michigan Public Pwr. Agy. Rev. (Combustion
Turbine #1 Proj.) 5 1/4% 1/1/2018 1,095,000 112
750M Milan Area School District GO 5 5/8% 5/1/2010* 874,687 90
1,490M Wayne Charter County Airport Rev. 5 3/8% 12/1/2016 1,655,763 169
- ----------------------------------------------------------------------------------------------------------------------
12,301,075 1,259
- ----------------------------------------------------------------------------------------------------------------------
Missouri--2.5%
200M Liberty Sewer System Rev. 6.15% 2/1/2015 232,250 24
1,105M Missouri State Dev. Fin. Brd. 5% 4/1/2020 1,167,156 119
310M Springfield Pub. Bldg. Corp. Leasehold Rev.
(Springfield Rec. Proj.) Series "B" 5.85% 6/1/2014 359,987 37
250M St. Joseph School District GO (Direct Deposit Prog.)
5 3/4% 3/1/2019 285,312 29
375M St. Louis County Pattonville R-3 School District GO
(Direct Deposit Prog.) 5 3/4% 3/1/2017 430,312 44
- ----------------------------------------------------------------------------------------------------------------------
2,475,017 253
- ----------------------------------------------------------------------------------------------------------------------
Portfolio Of Investments (continued)
FIRST INVESTORS INSURED TAX EXEMPT FUND II
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Nebraska--1.1%
$1,000M Municipal Energy Agency 5 1/4% 4/1/2021 $1,073,750 $110
- ----------------------------------------------------------------------------------------------------------------------
New Jersey--4.8%
1,000M Hudson County COP 5% 12/1/2021 1,060,000 109
810M Monmouth County Impt. Auth. Rev. 5% 12/1/2020 854,550 87
New Jersey State Educ. Facs. Authority:
1,000M Ramapo College 5% 7/1/2019 1,060,000 109
1,635M Rowan University 5 1/8% 7/1/2021 1,735,144 177
- ----------------------------------------------------------------------------------------------------------------------
4,709,694 482
- ----------------------------------------------------------------------------------------------------------------------
New York--6.5%
Camden Central School District General Obligations:
725M 5 1/2% 3/15/2016 828,312 85
250M 5 1/2% 3/15/2017 284,375 29
Indian River Central School District General Obligations:
560M 5% 1/15/2017 602,700 62
590M 5% 1/15/2018 630,562 65
2,000M Metropolitan Trans. Auth. 5% 1/1/2021 2,095,000 214
1,000M New York State Dormitory Auth. Rev. (Fordham Univ.)
5% 7/1/2020 1,053,750 108
785M Wayland-Cohocton Central School District GO
5% 6/15/2015 863,500 88
- ----------------------------------------------------------------------------------------------------------------------
6,358,199 651
- ----------------------------------------------------------------------------------------------------------------------
Ohio--13.6%
1,880M Akron GO 5 1/4% 12/1/2020 2,049,200 210
1,255M Akron Sewer System Rev. 5 1/4% 12/1/2020 1,367,950 140
Akron-Summit Cnty. Pub. Library General Obligations:
1,000M 5% 12/1/2018 1,073,750 110
2,500M 5% 12/1/2020 2,650,000 271
1,380M Cincinnati State Tech. & Cmnty. College Gen. Receipts
5 1/4% 10/1/2020 1,509,375 155
1,185M Fairfield County GO 5% 12/1/2022 1,242,769 127
1,500M Ohio State Bldg. Auth. State Facs. 5 1/2% 4/1/2018 1,678,125 172
1,140M Toledo City Sch. Dist. 5% 12/1/2020 1,215,525 124
450M Youngstown GO 6% 12/1/2031 518,625 53
- ----------------------------------------------------------------------------------------------------------------------
13,305,319 1,362
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Oregon--.6%
$500M Oregon State Dept. of Administrative Services COP
5.65% 5/1/2007* $565,000 $58
- ----------------------------------------------------------------------------------------------------------------------
Pennsylvania--3.4%
390M Allegheny County Port Auth. Spl. Rev. 5 1/2% 3/1/2013 443,625 45
525M Erie GO 5 3/4% 5/15/2007* 590,625 61
1,195M Pennridge Sch. Dist. GO 5% 2/15/2020 1,263,713 129
1,000M State Pub. Sch. Bldg. Auth. (Philadelphia Sch. Dist.)
5 1/4% 6/1/2024 1,062,500 109
- ----------------------------------------------------------------------------------------------------------------------
3,360,463 344
- ----------------------------------------------------------------------------------------------------------------------
Puerto Rico--.6%
545M Puerto Rico Indl. Tourist Edl. Med. & Env. Cntl. Facs.
6 1/4% 7/1/2016 579,700 59
- ----------------------------------------------------------------------------------------------------------------------
South Carolina--2.2%
1,000M Greenville Hosp. Sys. Facs. Rev. 5 1/4% 5/1/2019 1,088,750 111
1,000M Hilton Head Island Rev. 5 1/8% 12/1/2022 1,060,000 109
- ----------------------------------------------------------------------------------------------------------------------
2,148,750 220
- ----------------------------------------------------------------------------------------------------------------------
Texas--1.7%
505M Austin Texas Utility Systems Rev. 6% 11/15/2013 597,162 61
400M Harris County Toll Road GO Senior Lien Series "A"
6 1/2% 8/15/2013 495,500 51
500M Midlothian Water District GO 5 3/8% 9/1/2016 553,125 56
- ----------------------------------------------------------------------------------------------------------------------
1,645,787 168
- ----------------------------------------------------------------------------------------------------------------------
Washington--1.2%
1,090M King County Sewer Rev. 5 1/2% 1/1/2021 1,188,100 122
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $88,807,212) 93,457,341 9,566
- ----------------------------------------------------------------------------------------------------------------------
Portfolio Of Investments (continued)
FIRST INVESTORS INSURED TAX EXEMPT FUND II
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--5.1%
Adjustable Rate Notes**
$500M Gulf Coast Texas Waste Disp. Auth. Rev. 1.14% $500,000 $51
1,000M New Jersey Economic Dev. Auth. Rev. 1 1/4% 1,000,000 102
2,000M New York City Transitional Fin. Auth. Rev. 1.28% 2,000,000 205
1,500M Valdez Alaska Marine Term. Rev. 1.2% 1,500,000 154
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Tax Exempt Investments
(cost $5,000,000) 5,000,000 512
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $93,807,212) 100.8% 98,457,341 10,078
Excess of Liabilities Over Other Assets (.8) (765,752) (78)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $97,691,589 $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 3.95% with Citibank, N.A. 10/29/2015 $9,500M $(135,787)
======================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset daily by the issuer. The
interest rate shown is the rate in effect at December 31, 2003.
Summary of Abbreviations:
COP Certificate of Participation
GO General Obligation
See notes to financial statements
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) and the Lehman
Brothers Municipal Bond Index.
NEW YORK INSURED TAX FREE FUND
GRAPH PLOTS
As of December 31, 2003
NEW YORK INSURED LEHMAN BROTHERS
TAX FREE FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,949 9,483
Dec-95 10,331 11,151
Dec-96 10,636 11,625
Dec-97 11,468 12,693
Dec-98 12,109 13,516
Dec-99 11,665 13,237
Dec-00 13,113 14,784
Dec-01 13,524 15,542
Dec-02 14,938 17,034
Dec-03 15,591 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.37% (1.63%)
Five Years 5.18% 3.94%
Ten Years 5.16% 4.54%
S.E.C. 30-Day Yield 2.37%
Class B Shares
One Year 3.55% (0.45%)
Five Years 4.42% 4.08%
Since Inception
(1/12/95) 5.64% 5.64%
S.E.C. 30-Day Yield 1.77%
The graph compares a $10,000 investment in the First Investors New York
Insured Tax Free Fund, Inc. (Class A shares) beginning 12/31/93 with a
theoretical investment in the Lehman Brothers Municipal Bond Index (the
"Index"). The Index is a total return performance benchmark for the
investment grade tax exempt bond market. The Index does 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 the Index.
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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (1.79%),
3.80% and 4.46%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 2.21%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (0.60%), 3.94% and 5.54%, respectively, and the S.E.C. 30-Day Yield
for December 2003 would have been 1.60%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--93.7%
Education--16.2%
New York State Dormitory Authority Revenue:
City University:
$2,000M 5 3/4% 7/1/2012 $2,305,000 $119
5,955M 5 3/4% 7/1/2013 7,041,787 364
3,000M 6% 7/1/2020 3,663,750 189
2,350M Colgate University 6% 7/1/2021 2,861,125 148
1,500M Educational Facility 5 1/4% 5/15/2021 1,687,500 87
1,610M New York University 6% 7/1/2018 1,970,238 102
1,425M NYSARC Insured Series "A" 5 1/4% 7/1/2018 1,565,719 81
2,715M Rochester Institute of Technology 5 1/4% 7/1/2018 2,966,138 153
1,000M School Districts Financing Prog. Series "C"
5 1/4% 4/1/2021 1,077,500 56
Series "A":
1,085M 5% 7/1/2020 1,147,387 59
1,685M 5% 7/1/2021 1,771,356 91
Special Act School Districts Programs:
1,375M 6% 7/1/2012 1,605,313 83
1,460M 6% 7/1/2013 1,713,675 89
- ----------------------------------------------------------------------------------------------------------------------
31,376,488 1,621
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--35.2%
Buffalo:
Series "B":
1,130M 5 3/8% 11/15/2016 1,268,425 66
2,360M 5 3/8% 11/15/2017 2,640,250 136
2,620M 5 3/8% 11/15/2019 2,878,725 149
Series "D":
1,040M 6% 12/1/2013 1,229,800 64
1,000M 5 1/2% 12/15/2015 1,135,000 59
1,000M Central Square Central School Dist. 5% 5/15/2017 1,086,250 56
Eastport South Manor Central School District:
1,250M 5% 6/15/2016 1,368,750 71
1,315M 5% 6/15/2017 1,430,062 74
1,385M 5% 6/15/2018 1,494,069 77
1,000M Ilion Central School Dist. Series "B" 5 1/2% 6/15/2015 1,156,250 60
Nassau County:
4,355M 5.7% 8/1/2004* 4,600,796 238
3,845M 6 1/2% 11/1/2004* 4,129,838 213
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
General Obligations (continued)
New York City:
$1,000M Series "A" 7 1/4% 3/15/2018 $1,150,000 $59
3,355M Series "B1" 6.95% 8/15/2004* 3,509,062 181
4,420M Series "C" 5 5/8% 3/15/2019 4,939,350 255
Series "E":
1,000M 6.2% 8/1/2008 1,155,000 60
2,000M 5 3/4% 8/1/2018 2,285,000 118
4,570M 5 3/4% 5/15/2024 5,089,837 263
2,500M Series "F" 5 1/4% 8/1/2014 2,768,750 143
2,885M Series "G" 5 3/4% 8/1/2018 3,296,112 170
1,680M Niagara Falls Public Improvement 7 1/2% 3/1/2015 2,257,500 117
1,395M North Syracuse Central School District Series "A"
5% 6/15/2018 1,494,394 77
4,000M Puerto Rico Municipal Finance Agy. 6% 8/1/2015 4,715,000 244
1,000M Red Hook Central School District 5 1/8% 6/15/2017 1,100,000 57
1,000M Rome School District 5 1/2% 6/15/2016 1,122,500 58
Shenendehowa Central School District (Clifton Park):
Series "E":
585M 5% 1/1/2018 625,219 32
610M 5% 1/1/2019 648,125 33
Series "F":
500M 5% 7/15/2018 536,250 28
200M 5% 7/15/2019 213,250 11
Yonkers Series "A":
1,345M 5 1/8% 7/1/2016 1,482,862 77
1,900M 5 3/4% 10/1/2016 2,208,750 114
1,410M 5 1/4% 7/1/2017 1,545,712 80
1,480M 5 1/4% 7/1/2018 1,611,350 83
- ----------------------------------------------------------------------------------------------------------------------
68,172,238 3,523
- ----------------------------------------------------------------------------------------------------------------------
Health Care--4.4%
1,320M New York State Dorm. Auth. Rev. (United Cerebral
Palsy Affiliation) 5 1/8%, 7/1/2021 1,405,800 73
New York State Medical Care Facs. Agency:
1,850M Long Term Health Care 7 3/8% 11/1/2011 1,858,066 96
4,915M Mental Health Services Facs. 6 1/2% 8/15/2004* 5,176,183 267
- ----------------------------------------------------------------------------------------------------------------------
8,440,049 436
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Housing--1.3%
$2,345M New York State Housing Fin. Agy. 6.05% 5/1/2011 $2,520,875 $130
- ----------------------------------------------------------------------------------------------------------------------
Transportation--18.6%
Metropolitan Transit Authority of New York:
2,000M Commuter Facilities Series 6 1/8% 7/1/2004* 2,079,440 107
Transit Authority Revenue:
2,500M Series "A" 5% 11/15/2020 2,650,000 137
5,000M Series "B" 5 1/4% 11/15/2022 5,368,750 277
2,725M Transit Dedicated Tax 5 1/8% 11/15/2020 2,912,344 151
New York State Thruway Auth. Hwy. &
Bridge Series "A":
1,500M 6% 4/1/2015 1,766,250 91
3,250M 5 1/4% 4/1/2017 3,566,875 184
3,500M 5 1/4% 4/1/2018 3,815,000 197
Triborough Bridge & Tunnel Authority:
5,000M Series "B" 5.3% 1/1/2011* 5,737,500 297
6,900M Series "Y" 6% 1/1/2012 8,107,500 419
- ----------------------------------------------------------------------------------------------------------------------
36,003,659 1,860
- ----------------------------------------------------------------------------------------------------------------------
Utilities--14.2%
New York City Municipal Water Fin. Auth. Revenue:
2,750M 6% 6/15/2021 3,344,688 173
7,000M 5 1/2% 6/15/2033 7,577,500 392
8,000M Puerto Rico Electric Power Auth. Rev. 5 3/8% 7/1/2017 9,020,000 466
6,165M Suffolk County Water Auth. Rev. 6% 6/1/2017 7,536,713 389
- ----------------------------------------------------------------------------------------------------------------------
27,478,901 1,420
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--3.8%
2,500M Nassau County Interim Fin. Auth. 5 3/4% 11/15/2016 2,875,000 148
3,000M New York City Transitional Financial Auth.
5 1/4% 8/1/2020 3,247,500 168
895M New York State Dorm. Auth. Rev. (Jud. Facs. Lease)
7 3/8% 7/1/2016 1,135,531 59
- ----------------------------------------------------------------------------------------------------------------------
7,258,031 375
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $165,614,400) 181,250,241 9,365
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--5.1%
Adjustable Rate Notes**
New York City Transitional Financial Authority:
$2,000M Series "3" 1.28% $2,000,000 $103
1,000M Series "C" 1.28% 1,000,000 52
5,000M New York State Government Assistance Corp. 1.07% 5,000,000 259
1,900M Puerto Rico Commonwealth Govt. Dev. Bank 1.07% 1,900,000 98
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Tax Exempt Investments
(cost $9,900,000) 9,900,000 512
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $175,514,400) 98.8% 191,150,241 9,877
Other Assets, Less Liabilities 1.2 2,377,310 123
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $193,527,551 $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 3.95% with Citibank, N.A. 10/29/2015 $19,000M $(271,574)
======================================================================================================================
* 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 the rates in effect at December 31, 2003.
See notes to financial statements
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) and the
Lehman Brothers Municipal Bond Index.
ARIZONA FUND
GRAPH PLOTS
As of December 31, 2003
ARIZONA LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,894 9,483
Dec-95 10,531 11,151
Dec-96 10,921 11,625
Dec-97 11,935 12,693
Dec-98 12,672 13,516
Dec-99 12,434 13,237
Dec-00 13,787 14,784
Dec-01 14,416 15,542
Dec-02 15,873 17,034
Dec-03 16,630 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.77% (1.24%)
Five Years 5.59% 4.35%
Ten Years 5.84% 5.22%
S.E.C. 30-Day Yield 2.62%
Class B Shares
One Year 3.96% (0.04%)
Five Years 4.79% 4.46%
Since Inception
(1/12/95) 6.38% 6.38%
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 -- Arizona Fund (Class A shares) beginning 12/31/93
with a theoretical investment in the Lehman Brothers Municipal Bond Index
(the "Index"). The Index is a total return performance benchmark for the
investment grade tax exempt bond market. The Index does 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 the Index.
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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (1.63%),
3.76% and 4.53%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 2.16%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (0.45%), 3.86% and 5.69%, respectively, and the S.E.C. 30-Day Yield
for December 2003 would have been 1.55%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--ARIZONA FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--97.3%
Certificates of Participation--8.1%
$500M Arizona State Municipal Financing Prog. 5 3/8% 8/1/2030 $531,250 $214
1,000M Arizona State University 5% 7/1/2020 1,055,000 425
400M University of Arizona 5% 6/1/2020 422,000 170
- ----------------------------------------------------------------------------------------------------------------------
2,008,250 809
- ----------------------------------------------------------------------------------------------------------------------
Education--11.8%
500M Arizona School Facilities Board Rev. 5 1/4% 7/1/2016 554,375 223
500M Arizona State University Rev. Sys. 5.65% 7/1/2014 571,875 230
1,000M Energy Mgmt. Svcs. (Arizona St. Univ. Proj.
Main Campus) 5 1/4% 7/1/2018 1,098,750 443
640M South Campus Group (Arizona St. Univ. Proj.
South Campus) 5 5/8% 9/1/2023 712,800 287
- ----------------------------------------------------------------------------------------------------------------------
2,937,800 1,183
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--18.9%
Maricopa County School District:
215M #11 (Peoria) 6.1% 7/1/2004* 222,443 90
250M #11 (Peoria) 5 1/2% 7/1/2009* 290,313 117
185M #11 (Peoria) 6.1% 7/1/2010 191,070 77
1,000M #41 (Gilbert) Zero Coupon 1/1/2008 903,750 364
525M #80 (Chandler) 6 1/4% 7/1/2011 635,250 256
1,000M Phoenix Arizona Series "B" 5 3/8% 7/1/2019 1,108,750 446
Pima County Unified School District:
500M #6 (Marana) 5 1/4% 7/1/2010* 578,125 233
100M #13 (Tanque Verde) 6.7% 7/1/2010 104,565 42
200M Santa Cruz County School District #35, 6% 7/1/2008 206,468 83
Yavapai County Elementary School District:
230M #6 (Cottonwood-Oak Creek) 6.7% 7/1/2004* 238,630 96
215M #28 (Camp Verde) 6% 7/1/2008 224,088 90
- ----------------------------------------------------------------------------------------------------------------------
4,703,452 1,894
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--ARIZONA FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care--6.2%
$650M Maricopa County Ind. Dev. Auth. (Samaritan
Hlth. Svcs.) 7% 12/1/2016 $845,813 $341
600M Mesa Ind. Dev. Auth. (Discovery Hlth. Sys.)
5 7/8% 1/1/2016 684,000 275
- ----------------------------------------------------------------------------------------------------------------------
1,529,813 616
- ----------------------------------------------------------------------------------------------------------------------
Housing--.7%
150M Phoenix Ind. Dev. Auth. (Ventana Palms Apts.)
6.1% 10/1/2019 161,625 65
- ----------------------------------------------------------------------------------------------------------------------
Transportation--3.4%
385M Phoenix Airport Rev. 6 1/4% 7/1/2012 401,235 162
400M Tucson Street & Highway User Rev. 5 3/8% 7/1/2014 447,000 180
- ----------------------------------------------------------------------------------------------------------------------
848,235 342
- ----------------------------------------------------------------------------------------------------------------------
Utilities--32.2%
225M Gilbert Water & Sewer Rev. 6 1/2% 7/1/2012 232,819 94
1,000M Glendale Arizona Water & Sewer Rev. 5% 7/1/2021 1,052,500 424
Mesa Utility Systems Revenue:
350M 6 1/8% 7/1/2007* 403,375 163
500M 5 3/4% 7/1/2015 597,500 241
1,000M 5% 7/1/2019 1,110,000 447
Phoenix Arizona Civic Impt. Corp. Water
System Revenue:
250M 5 1/4% 7/1/2016 287,500 116
1,000M 5% 7/1/2018 1,068,750 430
500M 5 1/2% 7/1/2020 554,375 223
500M Phoenix Arizona Civic Wastewater Rev. 5 3/8% 7/1/2015 561,250 226
750M Pima County Sewer Rev. 5 3/8% 7/1/2014 838,125 338
250M Puerto Rico Electric Power Auth. Rev. 5 1/8% 7/1/2026 264,063 106
Tucson Water Revenue:
150M 8% 7/1/2013 204,375 82
250M 5% 7/1/2014 280,625 113
500M 5.3% 7/1/2016 549,375 221
- ----------------------------------------------------------------------------------------------------------------------
8,004,632 3,224
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--16.0%
$305M Casa Grande Excise Tax Rev. 6.1% 4/1/2009 $321,394 $129
1,000M Flagstaff Arizona Municipal Facs. Corp. 5 1/4% 7/1/2020 1,087,500 438
250M Greater Arizona Dev. Auth. Series "A" 6% 8/1/2015 288,750 116
500M Maricopa County Public Finance Rev. 5 1/2% 7/1/2015 563,750 227
750M Maricopa County Stadium District Rev. 5 3/8% 6/1/2017 838,125 338
400M Sierra Vista Municipal Property Corp. Muni. Facs. Rev.
6% 1/1/2011 421,292 170
400M Surprise Municipal Property Corp. Excise Tax Rev.
5 3/8% 7/1/2009* 448,000 180
- ----------------------------------------------------------------------------------------------------------------------
3,968,811 1,598
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $22,376,975) 24,162,618 9,731
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--1.2%
300M Puerto Rico Commonwealth Govt. Dev. Bank
Adjustable Rate Note 1.06%**
(cost $300,000) 300,000 121
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $22,676,975) 98.5% 24,462,618 9,852
Other Assets, Less Liabilities 1.5 367,418 148
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $24,830,036 $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 3.94% with Citibank, N.A. 11/17/2015 $1,200M $(14,054)
======================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset weekly by the issuer. The interest rate shown
is the rate in effect at December 31, 2003.
See notes to financial statements
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) and
the Lehman Brothers Municipal Bond Index.
CALIFORNIA FUND
GRAPH PLOTS
As of December 31, 2003
CALIFORNIA LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,850 9,483
Dec-95 10,457 11,151
Dec-96 10,866 11,625
Dec-97 11,916 12,693
Dec-98 12,669 13,516
Dec-99 12,303 13,237
Dec-00 13,971 14,784
Dec-01 14,499 15,542
Dec-02 16,026 17,034
Dec-03 16,739 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.45% (1.55%)
Five Years 5.73% 4.49%
Ten Years 5.91% 5.29%
S.E.C. 30-Day Yield 2.84%
Class B Shares
One Year 3.65% (0.35%)
Five Years 4.93% 4.59%
Since Inception
(1/12/95) 6.51% 6.51%
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 -- California Fund (Class A shares) beginning
12/31/93 with a theoretical investment in the Lehman Brothers Municipal
Bond Index (the "Index"). The Index is a total return performance benchmark
for the investment grade tax exempt bond market. The Index does 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 the
Index. 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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (1.93%),
4.07% and 4.89%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 2.41%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (0.75%), 4.18% and 6.12%, respectively, and the S.E.C. 30-Day Yield
for December 2003 would have been 1.82%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--CALIFORNIA FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--98.8%
Certificates of Participation--11.5%
$500M Castaic Lake Water Agency Water Sys. Impt. Proj.
7% 8/1/2012 $631,250 $207
750M Los Angeles Real Property Prog. 5.3% 4/1/2022 812,812 267
1,940M Riverside 5% 9/1/2020 2,051,550 673
- ----------------------------------------------------------------------------------------------------------------------
3,495,612 1,147
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--26.4%
1,000M Chaffey Community College District 5 1/4% 7/1/2022 1,070,000 351
500M Fontana School District 5 3/4% 5/1/2022 556,250 182
650M Jefferson High School District (San Mateo Cnty.)
6 1/4% 2/1/2016 800,313 263
1,000M Morgan Hill Unified School District 5 1/4% 8/1/2018 1,092,500 358
750M Natomas Unified School District 5.95% 9/1/2021 895,312 294
1,000M San Diego Unified School District Series "E"
5 1/4% 7/1/2024 1,063,750 349
Walnut Valley School District:
750M 6% 8/1/2012 915,000 300
500M 7.2% 2/1/2016 631,875 207
1,000M West Contra Costa Unified School District Series "B"
5% 8/1/2031 1,022,500 335
- ----------------------------------------------------------------------------------------------------------------------
8,047,500 2,639
- ----------------------------------------------------------------------------------------------------------------------
Transportation--6.2%
1,000M Port Oakland Revenue Bonds Series "M"
5 1/4% 11/1/2020 1,082,500 355
700M Puerto Rico Commonwealth Hwy. & Trans. Auth.
Rev. 5 3/4% 7/1/2018 807,625 265
- ----------------------------------------------------------------------------------------------------------------------
1,890,125 620
- ----------------------------------------------------------------------------------------------------------------------
Utilities--32.5%
1,000M California State Dept. Water Central Proj. Series "Z"
5% 12/1/2019 1,063,750 349
1,500M California State Dept. Water Pwr. Supply Rev.
5 3/8% 5/1/2018 1,651,875 542
250M Fresno Sewer Rev. 6 1/4% 9/1/2014 305,625 100
2,650M Los Angeles Water & Power Rev. Series "B"
5 1/8% 7/1/2020 2,835,500 930
700M Puerto Rico Electric Power Auth. Rev. 5 3/8% 7/1/2017 789,250 259
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--CALIFORNIA FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities (continued)
$1,000M San Diego Public Facs. Fin. Auth. Wtr. Rev.
5% 8/1/2020 $1,055,000 $346
1,210M San Juan Basin Auth. Rev. (Ground Wtr. Rec. Proj.)
5 1/4% 12/1/2017 1,337,050 439
750M South Gate Public Fin. Auth. Wtr. Rev. Series "A"
6% 10/1/2012 885,000 290
- ----------------------------------------------------------------------------------------------------------------------
9,923,050 3,255
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--22.2%
500M Barstow Redevelopment Agy. 7% 9/1/2014 644,375 211
1,000M California State Public Works Board 6 1/2% 12/1/2008 1,185,000 389
1,000M Long Beach Financing Auth. Rev. 6% 11/1/2017 1,217,500 399
1,000M Rohnert Park Cmnty. Dev. Commn. Tax Alloc. Rev.
5 1/4% 8/1/2020 1,083,750 355
500M San Francisco City & County Redev. Agy.
(Moscone Ctr.) 6 3/4% 7/1/2015 522,970 172
500M San Jose Redevelopment Agy. 6% 8/1/2015 605,625 199
700M San Mateo Joint Powers Auth. Lease Rev. 6 1/2% 7/1/2015 882,875 290
500M Santa Ana Financing Auth. Lease Rev. 6 1/4% 7/1/2015 616,250 202
- ----------------------------------------------------------------------------------------------------------------------
6,758,345 2,217
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $27,556,997) 98.8% 30,114,632 9,878
Other Assets, Less Liabilities 1.2 373,426 122
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $30,488,058 $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 3.95% with Citibank, N.A. 10/29/2015 $2,900M $(41,451)
======================================================================================================================
See notes to financial statements
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) and the
Lehman Brothers Municipal Bond Index.
COLORADO FUND
GRAPH PLOTS
As of December 31, 2003
COLORADO LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,881 9,483
Dec-95 10,502 11,151
Dec-96 10,982 11,625
Dec-97 12,011 12,693
Dec-98 12,764 13,516
Dec-99 12,490 13,237
Dec-00 13,953 14,784
Dec-01 14,685 15,542
Dec-02 16,264 17,034
Dec-03 17,092 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 5.09% (0.96%)
Five Years 6.01% 4.77%
Ten Years 6.13% 5.51%
S.E.C. 30-Day Yield 2.92%
Class B Shares
One Year 4.28% 0.28%
Five Years 5.19% 4.86%
Since Inception
(1/12/95) 6.73% 6.73%
S.E.C. 30-Day Yield 2.36%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund -- Colorado Fund (Class A shares) beginning 12/31/93
with a theoretical investment in the Lehman Brothers Municipal Bond Index
(the "Index"). The Index is a total return performance benchmark for the
investment grade tax exempt bond market. The Index does 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 the Index.
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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (1.58%),
3.96% and 4.57%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 2.29%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (0.38%), 4.01% and 5.71%, respectively, and the S.E.C. 30-Day Yield
for December 2003 would have been 1.69%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--COLORADO FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--95.6%
Certificate of Participation--3.6%
$250M Broomfield Open Space 5 1/2% 12/1/2020 $275,625 $202
200M Greeley Building Auth. 5.6% 11/1/2019 224,750 165
- ----------------------------------------------------------------------------------------------------------------------
500,375 367
- ----------------------------------------------------------------------------------------------------------------------
Education--14.6%
225M Colorado Postsecondary Educ. Facs. Auth. Rev.
(Auraria Foundation Proj.) 6% 9/1/2005* 241,875 178
200M Colorado School of Mines Auxiliary Facs. Rev.
5 1/4% 12/1/2020 217,250 159
1,075M University of Colorado Enterprise Rev. Series "A"
5% 6/1/2019 1,138,156 835
350M University of Northern Colorado Rev. 5 1/2% 6/1/2018 390,250 286
- ----------------------------------------------------------------------------------------------------------------------
1,987,531 1,458
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--35.0%
500M Adams & Arapahoe Cntys. Jnt. School District #28J
Aurora Series "A" 5 1/8% 12/1/2021 531,875 390
1,000M Arapahoe County School District #6 Littleton
5 1/4% 12/1/2019 1,092,500 801
200M Arapahoe County Water & Wastewater Series "B"
5 3/4% 12/1/2019 228,500 168
150M Bayfield School District #10, 6 1/2% 6/1/2005* 160,875 118
200M Clear Creek School District #RE 1, 6 1/4% 12/1/2010* 242,500 178
200M Douglas County School District #RE 1 Series "B"
5 3/4% 12/15/2019 228,750 168
150M Eagle Garfield & Routt Counties School
District #RE 50J 6.3% 12/1/2004* 160,028 117
El Paso County School District:
350M #2, (Harrison) 5 1/2% 12/1/2018 392,437 288
250M #20, 5 1/4% 12/15/2017 277,500 203
200M #49, (Falcon) 5 1/2% 12/1/2013 233,250 171
350M #49, (Falcon) 5 3/4% 12/1/2015 406,438 298
150M Garfield Pitkin & Eagle Cntys. School District #RE 1
6.6% 6/15/2004* 155,184 114
250M Hyland Hills Park & Rec. Dist. 5 1/2% 12/15/2018 281,875 207
250M Pueblo County School District #70, 5 1/4% 12/1/2022 268,125 197
100M Yuma Hospital District 6.4% 11/1/2004* 105,301 77
- ----------------------------------------------------------------------------------------------------------------------
4,765,138 3,495
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care--7.4%
Colorado Health Facilities Authority:
$200M Poudre Valley Health Care 5 5/8% 12/1/2019 $222,250 $163
100M Sisters of Charity 6 1/4% 5/15/2012 120,750 89
250M Colorado Springs Hospital Rev. 6% 12/15/2015 273,750 201
350M Denver City & County Mental Health Corp.
Series "A" 5 1/2% 7/15/2015 397,250 291
- ----------------------------------------------------------------------------------------------------------------------
1,014,000 744
- ----------------------------------------------------------------------------------------------------------------------
Transportation--6.7%
100M Arapahoe County Capital Impt. Hwy. Rev. (E-470)
6.05% 8/31/2005* 110,750 81
200M Colorado Dept. Trans. Rev. Antic. Notes Series "A"
6% 6/15/2010* 239,000 175
Denver City & County Airport Revenue:
255M 5 1/2% 11/15/2016 284,325 209
250M 5 3/4% 11/15/2020 280,000 205
- ----------------------------------------------------------------------------------------------------------------------
914,075 670
- ----------------------------------------------------------------------------------------------------------------------
Utilities--13.9%
200M Boulder Water & Sewer Rev. 5.6% 12/1/2016 228,500 168
200M Broomfield Water Activity Enterprise Water Rev.
5 1/2% 12/1/2019 223,250 164
Colorado Water Resources & Power Dev. Authority
Small Water Resources Rev. Series "A":
200M 5 3/4% 11/1/2017 230,000 169
250M 5 1/4% 11/1/2021 269,687 198
400M Denver City & County Wastewater Rev. 5 1/4% 11/1/2016 446,500 327
200M Pueblo Board Waterworks Water Rev. 6% 11/1/2014 236,500 173
150M Westminster Water & Wastewater Util. Enterprise Rev
6% 12/1/2004* 156,653 115
100M Woodland Park Wastewater Util. Rev. 6.05% 12/1/2013 105,180 77
- ----------------------------------------------------------------------------------------------------------------------
1,896,270 1,391
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--14.4%
250M Golden Sales & Use Tax Rev. 5 1/4% 12/1/2016 276,562 203
Larimer County Sales & Use Tax Revenue:
280M 5 1/4% 12/15/2016 312,900 229
400M 5 1/2% 12/15/2018 451,000 331
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--COLORADO FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue (continued)
$100M Pueblo Urban Renewal Auth. Tax Increment Rev.
6.05% 12/1/2012 $101,503 $74
250M Thornton County Sales & Use Tax Rev. 5 1/4% 9/1/2015 278,125 204
500M Westminster Sales & Use Tax Rev. 5 1/4% 12/1/2021 539,375 396
- ----------------------------------------------------------------------------------------------------------------------
1,959,465 1,437
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $12,080,994) 13,036,854 9,562
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--2.2%
300M Moffat County Poll. Cntl. Rev. Adjustable
Rate Note 1.3%** (cost $300,000) 300,000 220
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $12,380,994) 97.8% 13,336,854 9,782
Other Assets, Less Liabilities 2.2 296,715 218
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $13,633,569 $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 3.945% with Citibank, N.A. 11/12/2013 $600M $(14,965)
======================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset daily by the issuer. The interest rate shown
is the rate in effect at December 31, 2003.
See notes to financial statements
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) and
the Lehman Brothers Municipal Bond Index.
CONNECTICUT FUND
GRAPH PLOTS
As of December 31, 2003
CONNECTICUT LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,787 9,483
Dec-95 10,296 11,151
Dec-96 10,644 11,625
Dec-97 11,578 12,693
Dec-98 12,290 13,516
Dec-99 12,052 13,237
Dec-00 13,312 14,784
Dec-01 13,880 15,542
Dec-02 15,248 17,034
Dec-03 15,887 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.19% (1.79%)
Five Years 5.27% 4.02%
Ten Years 5.36% 4.74%
S.E.C. 30-Day Yield 2.46%
Class B Shares
One Year 3.40% (0.60%)
Five Years 4.47% 4.13%
Since Inception
(1/12/95) 6.00% 6.00%
S.E.C. 30-Day Yield 1.87%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund -- Connecticut Fund (Class A shares) beginning
12/31/93 with a theoretical investment in the Lehman Brothers Municipal
Bond Index (the "Index"). The Index is a total return performance benchmark
for the investment grade tax exempt bond market. The Index does 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 the
Index. 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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (2.17%),
3.63% and 4.32%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 2.09%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (1.00%), 3.73% and 5.58%, respectively, and the S.E.C. 30-Day Yield
for December 2003 would have been 1.48%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--CONNECTICUT FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--97.2%
Education--15.4%
Connecticut State Health & Educational Facilities
Authority Revenue:
$725M Choate Rosemary Hall 6.8% 7/1/2004* $752,557 $202
1,000M Fairfield University 5 5/8% 7/1/2016 1,135,000 305
500M Loomis Chafee Sch. Proj. Series "B" 6% 7/1/2004* 519,555 140
1,000M Trinity College 6 1/8% 7/1/2004* 1,044,690 281
University of Connecticut:
400M 5.4% 3/1/2016 442,000 119
1,100M 5 1/8% 2/15/2020 1,175,625 316
600M University of Connecticut Student Fees Rev. Series "A"
5 1/4% 11/15/2021 650,250 175
- ----------------------------------------------------------------------------------------------------------------------
5,719,677 1,538
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--45.6%
500M Branford 5% 5/15/2014 554,375 149
Bridgeport:
750M Series "A" 6 1/8% 7/15/2010* 906,563 244
1,000M Series "A" 5 3/8% 8/15/2019 1,093,750 294
450M Series "C" 5 3/8% 8/15/2019 487,687 131
Connecticut State:
500M Series "A" 5 1/4% 6/15/2013 560,625 151
250M Series "A" 5 3/8% 4/15/2016 280,625 75
500M Series "B" 5 3/4% 11/1/2009* 588,750 158
690M Series "E" 6% 3/15/2012 821,963 221
1,020M Series "F" 5% 10/15/2021 1,074,825 289
1,090M Cromwell 5% 6/15/2020 1,156,762 311
800M New Britain 6% 3/1/2012 951,000 256
New Haven:
985M 6% 11/1/2009* 1,173,381 315
500M 5 1/4% 11/1/2013 560,625 151
400M 5% 11/1/2017 434,500 117
1,000M 5% 11/1/2020 1,057,500 284
1,500M Puerto Rico Commonwealth 5 1/8% 7/1/2030 1,563,750 420
650M Puerto Rico Municipal Finance Agy. 5 1/2% 8/1/2017 734,500 197
330M Southington 6.55% 4/1/2012 336,732 91
1,250M Waterbury 5% 4/1/2021 1,309,375 352
1,200M Westport 5% 8/15/2019 1,315,500 354
- ----------------------------------------------------------------------------------------------------------------------
16,962,788 4,560
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care--9.2%
Connecticut State Health & Educational Facilities
Authority Revenue:
$450M Bridgeport Hospital 6 1/2% 7/1/2012 $461,970 $124
400M Child Care Facilities Program 5 1/2% 7/1/2019 443,500 119
700M New Britain General Hospital 6 1/8% 7/1/2014 728,672 196
Village Families & Children Series "A":
370M 5% 7/1/2015 405,150 109
385M 5% 7/1/2016 417,725 112
405M 5% 7/1/2017 437,906 118
500M Puerto Rico Indl. Tourist Edl. Med. & Env. Cntl. Facs.
6 1/4% 7/1/2016 531,835 143
- ----------------------------------------------------------------------------------------------------------------------
3,426,758 921
- ----------------------------------------------------------------------------------------------------------------------
Housing--3.6%
Connecticut State Housing Finance Authority:
750M 6% 11/15/2010 801,563 216
500M 5.85% 6/15/2030 533,125 143
- ----------------------------------------------------------------------------------------------------------------------
1,334,688 359
- ----------------------------------------------------------------------------------------------------------------------
Transportation--7.3%
Connecticut State Special Tax Obligation Revenue
Transportation Infrastructure:
250M 6 1/8% 9/1/2012 297,500 80
250M 5 3/8% 10/1/2014 280,938 76
500M 5 3/8% 7/1/2019 548,750 148
1,000M 5% 12/1/2021 1,048,750 282
500M Guam Intl. Airport Auth. Rev. Series "B"
5 1/4% 10/1/2022 536,250 143
- ----------------------------------------------------------------------------------------------------------------------
2,712,188 729
- ----------------------------------------------------------------------------------------------------------------------
Utilities--9.5%
Puerto Rico Electric Power Authority Revenue:
750M 5 3/8% 7/1/2017 845,625 227
250M 5 1/4% 7/1/2022 270,937 73
1,000M 5 1/8% 7/1/2026 1,056,250 284
250M 5 1/4% 7/1/2029 264,375 71
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--CONNECTICUT FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities (continued)
South Central Connecticut Regional Water Authority:
$500M 6 1/8% 8/1/2004* $519,480 $140
500M 5 1/4% 8/1/2014 563,750 152
- ----------------------------------------------------------------------------------------------------------------------
3,520,417 947
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--6.6%
545M Connecticut State Dev. Auth. Govtl. Lease Rev.
6 1/2% 6/15/2008 568,119 153
250M Connecticut State Special Assessment 5 1/4% 1/1/2011* 287,187 77
415M New Haven Air Rights Parking Facs. Rev.
5 3/8% 12/1/2015 481,919 130
1,000M Puerto Rico Public Fin. Corp. Commonwealth Approp.
Series "A" 5 1/2% 8/1/2018 1,123,750 302
- ----------------------------------------------------------------------------------------------------------------------
2,460,975 662
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $33,815,649) 36,137,491 9,716
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--.8%
300M Puerto Rico Commonwealth Govt. Dev. Bank
Adjustable Rate Note 1.06%**
(cost $300,000) 300,000 81
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $34,115,649) 98.0% 36,437,491 9,797
Other Assets, Less Liabilities 2.0 755,367 203
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $37,192,858 $10,000
======================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset weekly by the issuer. The interest rate shown
is the rate in effect at December 31, 2003.
See notes to financial statements
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) and the
Lehman Brothers Municipal Bond Index.
FLORIDA FUND
GRAPH PLOTS
As of December 31, 2003
FLORIDA LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,918 9,483
Dec-95 10,591 11,151
Dec-96 10,945 11,625
Dec-97 11,949 12,693
Dec-98 12,678 13,516
Dec-99 12,306 13,237
Dec-00 13,734 14,784
Dec-01 14,318 15,542
Dec-02 15,819 17,034
Dec-03 16,482 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.19% (1.78%)
Five Years 5.39% 4.15%
Ten Years 5.75% 5.12%
S.E.C. 30-Day Yield 2.61%
Class B Shares
One Year 3.38% (0.62%)
Five Years 4.58% 4.24%
Since Inception
(1/12/95) 6.30% 6.30%
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 12/31/93
with a theoretical investment in the Lehman Brothers Municipal Bond Index
(the "Index"). The Index is a total return performance benchmark for the
investment grade tax exempt bond market. The Index does 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 the Index.
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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (2.09%),
3.80% and 4.72%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 2.33%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (0.94%), 3.90% and 5.92%, respectively, and the S.E.C. 30-Day Yield
for December 2003 would have been 1.72%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--FLORIDA FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--93.3%
General Obligations--7.9%
$1,325M Miami-Dade County School District 5 3/8% 8/1/2015 $1,528,719 $375
1,000M Miami Homeland Defense 5 1/2% 1/1/2020 1,100,000 270
500M North Springs Improvement District 7% 10/1/2009 613,750 150
- ----------------------------------------------------------------------------------------------------------------------
3,242,469 795
- ----------------------------------------------------------------------------------------------------------------------
Health Care--4.6%
1,000M Escambia County Health Facs. Auth. Rev.
5.95% 7/1/2020 1,061,250 260
750M Puerto Rico Indl. Tourist Edl. Med. & Env. Cntl. Facs.
6 1/4% 7/1/2016 797,753 196
- ----------------------------------------------------------------------------------------------------------------------
1,859,003 456
- ----------------------------------------------------------------------------------------------------------------------
Transportation--7.0%
500M Dade County Aviation Rev. Series "A" 6% 10/1/2010 543,750 133
1,000M Miami-Dade County Aviation Rev. (Miami Int'l. Airport)
5.35% 10/1/2013 1,112,500 273
1,000M Miami-Dade County Expressway Auth. Toll Sys. Rev.
6% 7/1/2014 1,180,000 290
- ----------------------------------------------------------------------------------------------------------------------
2,836,250 696
- ----------------------------------------------------------------------------------------------------------------------
Utilities--32.0%
1,000M Cocoa Water & Sewer Rev. 5 3/4% 10/1/2007* 1,142,500 280
1,000M Escambia County Utilities Auth. Sys. Rev. 6 1/4% 1/1/2015 1,225,000 300
1,000M Florida Keys Aqueduct Auth. Wtr. Rev. 5% 9/1/2021 1,051,250 258
1,000M Florida State Municipal Power Agy. Rev. 5 1/2% 10/1/2019 1,113,750 273
1,495M Lakeland Electric & Water Rev. 6.05% 10/1/2014 1,816,425 446
1,000M Miami Beach Stormwater Rev. 5 3/8% 9/1/2030 1,057,500 259
1,130M Palm Bay Utility Rev. 5 1/4% 10/1/2018 1,238,762 304
1,000M Plant City Utility System Rev. 6% 10/1/2015 1,213,750 298
1,000M Sarasota County Utility System Rev. 5 1/4% 10/1/2020 1,081,250 265
1,480M Stuart Utilities Rev. 5 1/4% 10/1/2020 1,600,250 392
480M West Melbourne Water & Sewer Rev. 6 3/4% 10/1/2014 503,626 124
- ----------------------------------------------------------------------------------------------------------------------
13,044,063 3,199
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--41.8%
1,380M DeSoto County Capital Improvement Rev.
5 1/4% 10/1/2019 1,502,475 368
1,000M Escambia County Sales Tax Rev. 5 1/4% 10/1/2018 1,102,500 270
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue (continued)
Florida Municipal Loan Council Revenue:
$1,160M 6% 4/1/2015 $1,358,650 $333
1,715M 5 1/4% 11/1/2019 1,875,781 460
1,000M 5 3/8% 11/1/2025 1,063,750 261
1,205M Highlands County Infrastructure Sales Surtax Rev.
5% 11/1/2018 1,283,325 315
1,000M Indian Trace Community Dev. Dist. 5 3/4% 5/1/2011 1,072,500 263
1,000M Jacksonville Capital Improvement (Gator Bowl Proj.)
5 7/8% 10/1/2005* 1,076,250 264
2,000M Jacksonville Sales Tax Rev. 5 3/8% 10/1/2017 2,225,000 546
Osceola County Tourist Development Tax Revenue:
1,000M 5 1/2% 10/1/2017 1,127,500 276
1,000M 5 1/2% 10/1/2018 1,123,750 275
1,000M Pasco County Sales Tax Rev. 5% 12/1/2020 1,058,750 260
1,000M Tampa Sports Auth. Sales Tax Rev. (Tampa Bay Arena)
5 3/4% 10/1/2020 1,185,000 291
- ----------------------------------------------------------------------------------------------------------------------
17,055,231 4,182
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $34,939,997) 38,037,016 9,328
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--4.3%
Adjustable Rate Notes**
700M Jacksonville Fla. Health Facs. Auth. Hosp. Rev. 1.18% 700,000 172
200M Puerto Rico Commonwealth Govt. Dev. Bank 1.06% 200,000 49
850M University Athletic Assoc. Cap. Impt. Rev. 1.35% 850,000 208
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Tax Exempt Investments (cost $1,750,000) 1,750,000 429
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $36,689,997) 97.6% 39,787,016 9,757
Other Assets, Less Liabilities 2.4 992,857 243
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $40,779,873 $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 3.95% with Citibank, N.A. 10/29/2015 $3,900M $(55,744)
======================================================================================================================
* 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 the rates in effect at December 31, 2003.
See notes to financial statements
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) and the
Lehman Brothers Municipal Bond Index.
GEORGIA FUND
GRAPH PLOTS
As of December 31, 2003
GEORGIA LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,985 9,483
Dec-95 10,638 11,151
Dec-96 11,057 11,625
Dec-97 12,161 12,693
Dec-98 12,901 13,516
Dec-99 12,509 13,237
Dec-00 14,212 14,784
Dec-01 14,854 15,542
Dec-02 16,464 17,034
Dec-03 17,278 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.94% (1.12%)
Five Years 6.02% 4.77%
Ten Years 6.25% 5.62%
S.E.C. 30-Day Yield 2.85%
Class B Shares
One Year 4.13% 0.13%
Five Years 5.20% 4.88%
Since Inception
(1/12/95) 6.73% 6.73%
S.E.C. 30-Day Yield 2.28%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund -- Georgia Fund (Class A shares) beginning 12/31/93
with a theoretical investment in the Lehman Brothers Municipal Bond Index
(the "Index"). The Index is a total return performance benchmark for the
investment grade tax exempt bond market. The Index does 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 the Index.
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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (1.73%),
3.93% and 4.60%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 2.16%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (0.49%), 4.03% and 5.70%, respectively, and the S.E.C. 30-Day Yield
for December 2003 would have been 1.54%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--GEORGIA FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--94.5%
Education--8.6%
$250M Athens Dev. Auth. Hsg. & Lease Rev. (East Campus)
5 1/4% 12/1/2022 $268,125 $240
Fulton County Development Authority Revenue:
350M Georgia Tech Athletic Assoc. 5 1/2% 10/1/2017 394,188 352
250M Morehouse College 6 1/4% 12/1/2021 295,938 264
- ----------------------------------------------------------------------------------------------------------------------
958,251 856
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--9.2%
255M Atlanta 5 3/8% 12/1/2018 279,225 249
400M Cherokee County School District 5% 8/1/2017 433,000 387
100M Hall County School District 6.7% 12/1/2004* 107,043 96
100M Mitchell County School District 6 1/2% 3/1/2009 107,500 96
100M Peach County School District 6.4% 2/1/2005* 107,584 96
- ----------------------------------------------------------------------------------------------------------------------
1,034,352 924
- ----------------------------------------------------------------------------------------------------------------------
Health Care--14.8%
500M Cobb County Hospital Auth. Rev. 5 1/4% 4/1/2024 534,375 477
500M Fulton DeKalb Hospital Auth. Rev. 5 1/4% 1/1/2018 550,000 491
125M Puerto Rico Indl. Tourist Edl. Med. & Env. Cntl. Facs.
6 1/4% 7/1/2016 132,959 119
400M Tift County Hospital Auth. Rev. 5 1/4% 12/1/2019 434,500 388
- ----------------------------------------------------------------------------------------------------------------------
1,651,834 1,475
- ----------------------------------------------------------------------------------------------------------------------
Housing--1.4%
150M Georgia State Hsg. & Fin. Auth. Rev. 5.7% 12/1/2011 157,312 140
- ----------------------------------------------------------------------------------------------------------------------
Utilities--44.5%
235M Atlanta Water & Wastewater Rev. 5 1/2% 11/1/2017 275,831 246
255M Brunswick Water & Sewer Rev. 6.1% 10/1/2019 315,563 282
250M Columbia County Water & Sewer Rev. 6 1/4% 6/1/2010* 301,250 269
250M Fayetteville Water & Sewer Rev. 5% 11/1/2021 263,125 235
250M Forsyth County Water & Sewer Rev. 6 1/4% 4/1/2010* 302,188 270
250M Fulton County Water & Sewer Rev. 6 3/8% 1/1/2014 303,438 271
235M Gainesville Water & Sewer Rev. 5 1/4% 11/15/2015 261,731 234
Georgia Municipal Gas Authority Revenue:
Buford Project:
80M 6.8% 11/1/2009 85,114 76
250M 5 1/2% 11/1/2012 283,125 253
100M Warner Robins Series "B" 5.8% 1/1/2015 109,500 98
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--GEORGIA FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities (continued)
$245M Griffin County Combined Pub. Utility Rev. 5% 1/1/2021 $259,087 $231
400M Gwinnett County Water & Sewer Rev. 5% 8/1/2018 428,500 383
250M Milledgeville Water & Sewer Rev. 6% 12/1/2021 306,250 273
200M Newnan Water Sewer & Light Comm. Pub. Utils. Rev.
5% 1/1/2015 219,000 196
Puerto Rico Electric Power Authority Revenue:
400M 5 3/8% 7/1/2017 451,000 403
250M 5 1/8% 7/1/2026 264,062 236
500M Virgin Island Water & Power Authority Rev.
5% 7/1/2014 559,375 499
- ----------------------------------------------------------------------------------------------------------------------
4,988,139 4,455
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--16.0%
80M Appling County Dev. Auth. Poll. Cntl. Rev.
7.1% 1/1/2014 80,800 72
250M Atlanta & Fulton Cntys. Rec. Auth. Rev. 5 1/4% 12/1/2016 275,312 246
300M Atlanta Dev. Auth. Rev. (Yamacraw Design Ctr. Proj.)
Series "A" 5 3/8% 1/1/2019 328,875 294
500M Cobb-Marietta Coliseum & Exhibit Hall Auth. Rev.
5 1/2% 10/1/2018 586,875 524
250M College Park Dev. Auth. Rev. (Civic Ctr. Proj.)
5 3/4% 9/1/2026 281,250 251
200M Fayette Cnty. Pub. Facs. Auth. Rev. (Criminal
Justice Ctr.) 6 1/4% 6/1/2010* 242,750 217
- ----------------------------------------------------------------------------------------------------------------------
1,795,862 1,604
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $9,712,594) 10,585,750 9,454
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--3.6%
$400M Puerto Rico Commonwealth Govt. Dev. Bank
Adjustable Rate Note 1.06%**
(cost $400,000) $400,000 $357
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $10,112,594) 98.1% 10,985,750 9,811
Other Assets, Less Liabilities 1.9 211,310 189
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $11,197,060 $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 3.95% with Citibank, N.A. 10/29/2015 $1,000M $(14,293)
======================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset weekly by the issuer. The interest rate shown
is the rate in effect at December 31, 2003.
See notes to financial statements
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) and the
Lehman Brothers Municipal Bond Index.
MARYLAND FUND
GRAPH PLOTS
As of December 31, 2003
MARYLAND LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,899 9,483
Dec-95 10,456 11,151
Dec-96 10,804 11,625
Dec-97 11,841 12,693
Dec-98 12,596 13,516
Dec-99 12,276 13,237
Dec-00 13,755 14,784
Dec-01 14,298 15,542
Dec-02 15,743 17,034
Dec-03 16,447 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.47% (1.52%)
Five Years 5.48% 4.24%
Ten Years 5.72% 5.10%
S.E.C. 30-Day Yield 2.52%
Class B Shares
One Year 3.75% (0.25%)
Five Years 4.67% 4.34%
Since Inception
(1/12/95) 6.29% 6.29%
S.E.C. 30-Day Yield 1.93%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund -- Maryland Fund (Class A shares) beginning 12/31/93
with a theoretical investment in the Lehman Brothers Municipal Bond Index
(the "Index"). The Index is a total return performance benchmark for the
investment grade tax exempt bond market. The Index does 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 the Index.
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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (1.89%),
3.63% and 4.37%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 2.23%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (0.65%), 3.71% and 5.44%, respectively, and the S.E.C. 30-Day Yield
for December 2003 would have been 1.62%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MARYLAND FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--102.1%
Certificates of Participation--2.6%
$750M Baltimore Board of Education Admin. Proj.
5.8% 4/1/2011 $872,813 $265
- ----------------------------------------------------------------------------------------------------------------------
Education--9.1%
750M Maryland St. Econ. Dev. Corp. Util. Infrastructure Rev.
(Univ. MD-College Park) 5 3/8% 7/1/2016 833,438 253
Morgan State University Academic & Auxiliary
Facilities Fees Revenue:
500M 6.05% 7/1/2015 596,875 181
200M 6.1% 7/1/2020 242,000 73
750M Puerto Rico Indl. Tourist Edl. Med. & Env. Cntl. Facs.
(University Plaza Proj.) Series "A" 5 5/8% 7/1/2013 858,750 261
430M St. Mary's College Rev. 5.45% 9/1/2020 474,612 144
- ----------------------------------------------------------------------------------------------------------------------
3,005,675 912
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--39.2%
1,475M Anne Arundel 5 3/8% 3/1/2015 1,672,281 507
350M Anne Arundel County Water & Sewer 6.3% 8/1/2005* 380,625 115
Baltimore:
250M 5 5/8% 10/15/2006* 281,562 85
700M 5 1/2% 10/15/2015 823,375 250
1,000M Baltimore County Metropolitan District #68,
5% 8/1/2019 1,076,250 327
90M Chesapeake Beach 6 1/2% 5/1/2012 90,360 27
1,000M Maryland State 5 1/2% 8/1/2010 1,161,250 352
1,000M Ocean City 5% 3/1/2021 1,050,000 319
1,000M Prince Georges County 5 1/4% 12/1/2014 1,128,750 342
400M Puerto Rico Commonwealth 5 1/4% 7/1/2027 423,500 129
650M Puerto Rico Commonwealth Series "A" 6 1/4% 7/1/2013 800,312 243
1,050M Puerto Rico Municipal Finance Agency 5 1/2% 8/1/2017 1,186,500 360
425M Queen Annes County School & Public Facs.
5 1/4% 1/15/2014 474,406 144
1,000M St. Mary's County Hospital 5% 10/1/2020 1,075,000 326
325M Washington County Pub. Impt. 5.8% 1/1/2005* 346,336 105
350M Wicomico County 5 1/2% 12/1/2016 397,687 121
500M Worcester County 5 5/8% 3/1/2014 570,625 173
- ----------------------------------------------------------------------------------------------------------------------
12,938,819 3,925
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--MARYLAND FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care--8.4%
Maryland State Health & Higher Edl. Facilities:
$500M Maryland General Hosp. 6 1/8% 7/1/2014 $520,480 $158
1,250M University of Maryland Med. Sys. 5% 7/1/2024 1,290,625 391
150M Maryland State Indl. Dev. Fin. Auth. (Holy Cross
Hlth. Sys.) 5.7% 12/1/2010 171,188 52
325M Puerto Rico Indl. Tourist Edl. Med. & Env. Cntl. Facs.
6 1/4% 7/1/2016 345,693 105
350M Takoma Park Hospital Facs. (Adventist Hosp.)
6 1/2% 9/1/2012 428,750 130
- ----------------------------------------------------------------------------------------------------------------------
2,756,736 836
- ----------------------------------------------------------------------------------------------------------------------
Housing--7.3%
250M Baltimore County Mortgage Rev. (Old Orchard Apts.)
7% 7/1/2016 257,738 78
Maryland State Community Development Admin.
Dept. Hsg. & Community Development:
1,000M 5% 7/1/2015 1,097,500 333
490M 5 7/8% 7/1/2016 518,175 157
500M Montgomery County Multi-Family Mortgage Rev.
6% 7/1/2020 537,500 163
- ----------------------------------------------------------------------------------------------------------------------
2,410,913 731
- ----------------------------------------------------------------------------------------------------------------------
Transportation--9.6%
Puerto Rico Commonwealth Hwy. & Trans.
Authority Revenue:
1,425M Series "G" 5 1/4% 7/1/2019 1,572,844 477
1,275M Series "Z" 6 1/4% 7/1/2014 1,579,406 479
- ----------------------------------------------------------------------------------------------------------------------
3,152,250 956
- ----------------------------------------------------------------------------------------------------------------------
Utilities--17.3%
Baltimore Wastewater Utilities Revenue Series "A":
500M 5 1/2% 7/1/2010* 581,250 176
200M 6% 7/1/2015 243,250 74
1,090M 5% 7/1/2020 1,152,675 350
Baltimore Water Project Revenue Series "A":
220M 6% 7/1/2010* 262,350 80
250M 5.8% 7/1/2012* 297,813 90
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities (continued)
Puerto Rico Electric Power Auth. Revenue:
$1,390M 5 3/8% 7/1/2017 $1,567,225 $475
1,500M 5 1/4% 7/1/2029 1,586,250 481
- ----------------------------------------------------------------------------------------------------------------------
5,690,813 1,726
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--8.6%
250M Baltimore Convention Center 5 1/2% 9/1/2014 282,813 86
250M Maryland Stadium Auth. Rev. 5 7/8% 12/15/2013 265,337 80
1,000M Puerto Rico Municipal Fin. Agy. 5 1/4% 8/1/2021 1,088,750 330
1,025M Puerto Rico Public Fin. Corp. Comwlth. Approp.
Series "A" 5 3/8% 6/1/2015 1,189,000 361
- ----------------------------------------------------------------------------------------------------------------------
2,825,900 857
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $31,187,162) 102.1% 33,653,919 10,208
Excess of Liabilities Over Other Assets (2.1) (686,317) (208)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $32,967,602 $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 3.95% with Citibank, N.A. 10/29/2015 $3,200M $(45,739)
======================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
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)
and the Lehman Brothers Municipal Bond Index.
MASSACHUSETTS FUND
GRAPH PLOTS
As of December 31, 2003
MASSACHUSETTS LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,927 9,483
Dec-95 10,451 11,151
Dec-96 10,763 11,625
Dec-97 11,653 12,693
Dec-98 12,274 13,516
Dec-99 11,981 13,237
Dec-00 13,398 14,784
Dec-01 13,955 15,542
Dec-02 15,386 17,034
Dec-03 16,135 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.86% (1.16%)
Five Years 5.62% 4.38%
Ten Years 5.52% 4.90%
S.E.C. 30-Day Yield 2.45%
Class B Shares
One Year 4.05% 0.05%
Five Years 4.80% 4.46%
Since Inception
(1/12/95) 6.02% 6.02%
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 -- Massachusetts Fund (Class A shares) beginning
12/31/93 with a theoretical investment in the Lehman Brothers Municipal
Bond Index (the "Index"). The Index is a total return performance benchmark
for the investment grade tax exempt bond market. The Index does 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 the
Index. 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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (1.52%),
3.99% and 4.53%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 2.05%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (0.32%), 4.08% and 5.65%, respectively, and the S.E.C. 30-Day Yield
for December 2003 would have been 1.43%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MASSACHUSETTS FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--95.0%
Education--7.9%
$1,000M Massachusetts State College Bldg. Auth. Proj.
5 1/4% 5/1/2021 $1,068,750 $360
1,000M University of Massachusetts Bldg. Auth. Rev.
6 7/8% 5/1/2014 1,277,500 430
- ----------------------------------------------------------------------------------------------------------------------
2,346,250 790
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--48.1%
1,000M Holliston 5 1/4% 4/1/2018 1,100,000 370
1,000M Lawrence 5 1/4% 3/15/2018 1,092,500 368
150M Massachusetts Series "B" 7% 7/1/2009 182,062 61
1,000M Massachusetts State Construction Loan Series "E"
5 3/8% 1/1/2013* 1,157,500 390
1,080M North Hampton 5.2% 6/15/2015 1,190,700 401
1,155M Quaboag Regional School District 5 1/2% 6/1/2017 1,300,819 438
Springfield:
1,000M 6% 10/1/2015 1,181,250 398
1,000M 5 3/8% 8/1/2017 1,106,250 373
1,000M 5 1/4% 1/15/2023 1,063,750 358
1,000M Tantasqua Regional School District 5% 8/15/2017 1,078,750 363
1,370M Westfield 5 1/2% 12/15/2017 1,549,813 522
1,040M Westford 5 1/8% 4/1/2017 1,137,500 383
1,000M Worcester 5 1/2% 8/15/2017 1,127,500 380
- ----------------------------------------------------------------------------------------------------------------------
14,268,394 4,805
- ----------------------------------------------------------------------------------------------------------------------
Health Care--12.5%
1,000M Harvard Pilgrim Health Care 5 1/4% 7/1/2013 1,088,750 367
750M Massachusetts General Hospital Series "F" 6 1/4% 7/1/2012 876,563 295
Massachusetts Health & Educational Facilities Auth.
Capital Asset Program:
145M 7.35% 8/1/2008 145,635 49
40M 7.2% 7/1/2009 40,123 13
1,500M Mt. Auburn Hospital 6 1/4% 8/15/2014 1,570,410 529
- ----------------------------------------------------------------------------------------------------------------------
3,721,481 1,253
- ----------------------------------------------------------------------------------------------------------------------
Housing--1.5%
420M Massachusetts Housing Finance Agy. 6% 12/1/2012 444,150 150
- ----------------------------------------------------------------------------------------------------------------------
Transportation--7.9%
1,000M Massachusetts State Port Auth. Rev. Series "A"
5 3/4% 7/1/2012 1,167,500 393
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--MASSACHUSETTS FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Transportation (continued)
$1,000M Route 3 North Trans. Impt. Assoc. 5 5/8% 6/15/2010* $1,168,750 $394
- ----------------------------------------------------------------------------------------------------------------------
2,336,250 787
- ----------------------------------------------------------------------------------------------------------------------
Utilities--11.6%
1,035M Boston Water & Sewer Commission Rev. 5 3/4% 11/1/2013 1,220,006 411
1,455M Holyoke Gas & Electric Dept. Rev. 5 3/8% 12/1/2018 1,607,775 541
600M South Essex Sewer District Series "B" 6 3/4% 6/1/2004* 625,776 211
- ----------------------------------------------------------------------------------------------------------------------
3,453,557 1,163
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--5.5%
1,000M Boston Convention Center Act 1997 Series "A"
5% 5/1/2017 1,072,500 361
500M Massachusetts Development Fin. Agy. Res. Recovery
Rev. (Semass Sys.) Series "A" 5 5/8% 1/1/2013 570,625 192
- ----------------------------------------------------------------------------------------------------------------------
1,643,125 553
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $25,697,410) 28,213,207 9,501
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--4.0%
Adjustable Rate Notes**
700M Massachusetts St. Hlth. & Edl. Facs. Auth. Rev. 1.3% 700,000 236
200M Massachusetts St. Indv. Fin. Agy. Rev. 1.35% 200,000 67
300M Puerto Rico Commonwealth Govt. Dev. Bank 1.06% 300,000 101
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short Term Tax Exempt Investments (cost $1,200,000) 1,200,000 404
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $26,897,410) 99.0% 29,413,207 9,905
Other Assets, Less Liabilities 1.0 281,843 95
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $29,695,050 $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 3.945% with Citibank, N.A. 11/12/2013 $1,400M $(34,917)
======================================================================================================================
* 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 the rates in effect at December 31, 2003.
See notes to financial statements
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) and the
Lehman Brothers Municipal Bond Index.
MICHIGAN FUND
GRAPH PLOTS
As of December 31, 2003
MICHIGAN LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,824 9,483
Dec-95 10,365 11,151
Dec-96 10,715 11,625
Dec-97 11,719 12,693
Dec-98 12,375 13,516
Dec-99 12,049 13,237
Dec-00 13,368 14,784
Dec-01 13,888 15,542
Dec-02 15,267 17,034
Dec-03 15,979 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.66% (1.32%)
Five Years 5.25% 4.00%
Ten Years 5.42% 4.80%
S.E.C. 30-Day Yield 2.11%
Class B Shares
One Year 3.91% (0.09%)
Five Years 4.44% 4.10%
Since Inception
(1/12/95) 6.02% 6.02%
S.E.C. 30-Day Yield 1.50%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund -- Michigan Fund (Class A shares) beginning 12/31/93
with a theoretical investment in the Lehman Brothers Municipal Bond Index
(the "Index"). The Index is a total return performance benchmark for the
investment grade tax exempt bond market. The Index does 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 the Index.
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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (1.56%),
3.73% and 4.49%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 1.85%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (0.35%), 3.82% and 5.71%, respectively, and the S.E.C. 30-Day Yield
for December 2003 would have been 1.22%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MICHIGAN FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--98.2%
Education--2.4%
$1,000M Western University Revenue 5% 11/15/2019 $1,068,750 $247
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--52.4%
1,000M Detroit City School District 5 1/4% 5/1/2016 1,140,000 263
1,800M Detroit Downtown Development Series "A"
5 3/4% 7/15/2015 2,018,250 466
1,000M Godwin Heights Public School District 5 5/8% 5/1/2015 1,138,750 263
1,000M Grand Blanc Community School District 5 5/8% 5/1/2015 1,145,000 265
1,000M Grand Ledge Public School District 7 7/8% 5/1/2004* 1,042,120 241
1,040M Grand Rapids Building Authority 5 3/4% 8/1/2015 1,199,900 277
1,000M Gull Lake Community School District Zero
Coupon 5/1/2013 695,000 160
1,575M Jenison Public School District 5 1/2% 5/1/2018 1,764,000 408
1,000M Lake Orion Community School District 7% 5/1/2005* 1,086,250 251
1,000M Lincoln Park School District 7% 5/1/2006* 1,135,000 263
1,000M Michigan State Environmental Protection Prog.
6 1/4% 11/1/2012 1,191,250 276
1,000M Montrose Township School District 6.2% 5/1/2017 1,241,250 287
1,200M Newaygo Public School 5 3/4% 5/1/2018 1,366,500 316
1,000M Plainwell Community School District 5 1/2% 5/1/2019 1,118,750 258
1,000M Portage Lake Water & Sewer Authority 6.1% 10/1/2014 1,095,000 253
1,500M Puerto Rico Municipal Finance Agency 5 3/4% 8/1/2013 1,743,750 403
380M Saline Building Authority 7.1% 7/1/2009 392,323 91
500M Waterford Township School District 6 1/4% 6/1/2004* 515,500 119
1,485M West Ottawa Public School District 5 3/8% 5/1/2019 1,648,350 381
- ----------------------------------------------------------------------------------------------------------------------
22,676,943 5,241
- ----------------------------------------------------------------------------------------------------------------------
Health Care--10.3%
Michigan State Hospital Finance Authority Revenue:
1,000M Ascension Health Credit 5 3/4% 11/15/2009* 1,172,500 271
1,000M Mercy Mount Clemens 5 3/4% 5/15/2017 1,126,250 260
1,000M St. John's Hospital 6% 5/15/2008 1,023,880 237
1,000M Saginaw Hospital Fin. Auth. (Covenant Med. Ctr.)
5 5/8% 7/1/2013 1,127,500 261
- ----------------------------------------------------------------------------------------------------------------------
4,450,130 1,029
- ----------------------------------------------------------------------------------------------------------------------
Transportation--2.6%
1,000M Wayne Charter County Airport Rev. Series "C"
5 3/8% 12/1/2016 1,111,250 257
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities--26.8%
Detroit Water Supply System Revenue:
$1,750M 5 1/2% 7/1/2014 $1,977,500 $457
1,275M 6 1/2% 7/1/2015 1,593,750 368
1,000M Kalamazoo Water Rev. 6% 9/1/2005* 1,085,000 251
1,625M Lansing Sewer Disposal System Rev. 5% 5/1/2021 1,716,406 397
Michigan State Strategic Fund (Detroit Edison Co.):
1,750M 6.95% 5/1/2011 2,180,938 504
1,000M 7% 5/1/2021 1,310,000 303
1,000M Michigan State Trunk Line 5 1/4% 10/1/2021 1,078,750 248
500M Monroe County Economic Dev. Corp. (Detroit
Edison Co.) 6.95% 9/1/2022 660,000 153
- ----------------------------------------------------------------------------------------------------------------------
11,602,344 2,681
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--3.7%
Michigan Municipal Bond Authority Revenue:
530M 6.55% 11/1/2008 562,807 130
1,000M 6 1/8% 5/1/2014 1,035,020 239
- ----------------------------------------------------------------------------------------------------------------------
1,597,827 369
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $38,204,749) 42,507,244 9,824
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--.7%
300M University of Michigan Regent Hospital Rev.
Adjustable Rate Note 1.3%** (cost $300,000) 300,000 69
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $38,504,749) 98.9% 42,807,244 9,893
Other Assets, Less Liabilities 1.1 463,661 107
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $43,270,905 $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 3.95% with Citibank, N.A. 10/29/2015 $4,200M $(60,032)
======================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset daily by the issuer. The
interest rate shown is the rate in effect at December 31, 2003.
See notes to financial statements
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) and
the Lehman Brothers Municipal Bond Index.
MINNESOTA FUND
GRAPH PLOTS
As of December 31, 2003
MINNESOTA LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,865 9,483
Dec-95 10,255 11,151
Dec-96 10,610 11,625
Dec-97 11,519 12,693
Dec-98 12,237 13,516
Dec-99 12,035 13,237
Dec-00 13,368 14,784
Dec-01 13,965 15,542
Dec-02 15,302 17,034
Dec-03 16,054 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.91% (1.14%)
Five Years 5.58% 4.33%
Ten Years 5.47% 4.85%
S.E.C. 30-Day Yield 2.60%
Class B Shares
One Year 4.17% 0.17%
Five Years 4.78% 4.44%
Since Inception
(1/12/95) 6.06% 6.06%
S.E.C. 30-Day Yield 2.01%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund -- Minnesota Fund (Class A shares) beginning 12/31/93
with a theoretical investment in the Lehman Brothers Municipal Bond Index
(the "Index"). The Index is a total return performance benchmark for the
investment grade tax exempt bond market. The Index does 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 the Index.
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 12/31/03)
include the reinvestment of all dividends and 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 Return for One Year, Five Years and Ten Years would
have been (1.75%), 3.64% and 4.15%, respectively, and the S.E.C. 30-Day
Yield for December 2003 would have been 1.97%. The Class B "S.E.C.
Standardized" Average Annual Total Return for One Year, Five Years and
Since Inception would have been (0.43%), 3.76% and 5.37%, respectively, and
the S.E.C. 30-Day Yield for December 2003 would have been 1.35%. Results
represent past performance and do not indicate future results. 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 Bond Index figures are from Lehman
Brothers, Inc. and all other figures are from First Investors Management
Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MINNESOTA FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--93.2%
Certificates of Participation--2.9%
$400M Minneapolis Special School District #001
5.9% 2/1/2006* $435,500 $290
- ----------------------------------------------------------------------------------------------------------------------
Education--3.2%
400M University of Minnesota 5 3/4% 7/1/2017 477,000 317
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--45.1%
400M Becker Ind. School District #726, 6% 2/1/2017 464,500 309
325M Bloomington Ind. School District #271, 5 1/8% 2/1/2015 359,937 239
200M Delano Ind. School District #879, 5.6% 2/1/2015 227,000 151
Eagan Recreational Facilities Series "A":
480M 5% 2/1/2015 525,600 349
250M 5% 2/1/2016 271,250 180
400M Elk River Ind. School District #728, 5 1/2% 2/1/2021 439,000 292
285M Inver Grove Heights Ind. School District #199,
5 3/4% 2/1/2006* 307,800 205
500M Lake Superior Ind. School District #381, 5% 4/1/2019 533,750 355
280M Lakeville 5 1/2% 2/1/2011 300,300 200
405M Lino Lakes 5.7% 2/1/2012 444,994 296
260M Mahtomedi Ind. School District #832, 5% 2/1/2017 280,475 187
400M Moorehead Ind. School District #152, 5% 4/1/2017 432,000 287
350M North St. Paul Maplewood Ind. School District #622,
7.1% 2/1/2005* 372,222 247
Pequot Lakes Ind. School District #186:
250M 5% 2/1/2016 271,250 180
250M 5 1/8% 2/1/2018 270,938 180
St. Paul Ind. School District #625:
250M 5 5/8% 2/1/2015 281,250 187
400M 5% 2/1/2017 433,000 288
535M Upsala Ind. School District #487, 5% 2/1/2020 567,100 377
- ----------------------------------------------------------------------------------------------------------------------
6,782,366 4,509
- ----------------------------------------------------------------------------------------------------------------------
Health Care--11.7%
200M Hibbing Health Care Facilities Rev. (Duluth Clinic)
5 1/2% 11/1/2013* 235,250 156
500M Minneapolis Health Care Sys. Rev. (Fairview Hlth. Svcs.)
5 1/2% 5/15/2017 563,125 374
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--MINNESOTA FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care (continued)
$350M Minnesota Agriculture & Econ. Dev. Brd. Rev.
(Benedictine Hlth.) 5 1/4% 2/15/2014 $388,063 $258
500M St. Cloud Healthcare Oblig. Group "A" 5.8% 5/1/2016 575,625 383
- ----------------------------------------------------------------------------------------------------------------------
1,762,063 1,171
- ----------------------------------------------------------------------------------------------------------------------
Housing--7.0%
Minnesota State Housing Finance Authority:
425M Rental Housing Revenue 5.9% 8/1/2015 440,096 293
Single-Family Mortgage Revenue:
65M 6.4% 1/1/2015 66,544 44
115M 6% 1/1/2018 123,481 82
400M Minnetonka Multi-Family Housing Rev.
(Cedar Hills Proj.) 5.9% 10/20/2019 428,500 285
- ----------------------------------------------------------------------------------------------------------------------
1,058,621 704
- ----------------------------------------------------------------------------------------------------------------------
Transportation--7.4%
Minneapolis & St. Paul Metro Airports Comm.
Airport Rev. Series "A":
800M 5% 1/1/2018 855,000 569
250M 5% 1/1/2028 257,812 171
- ----------------------------------------------------------------------------------------------------------------------
1,112,812 740
- ----------------------------------------------------------------------------------------------------------------------
Utilities--10.5%
400M Northern Minnesota Municipal Pwr. Agy. Elec.
Sys. Rev. 5.4% 1/1/2016 443,500 295
210M Southern Minnesota Municipal Pwr. Agy. Pwr.
Supply Sys. 5 3/4% 1/1/2018 216,474 144
Western Minnesota Municipal Power Agency:
325M 5 1/2% 1/1/2011 353,844 235
500M 5 1/2% 1/1/2015 561,875 374
- ----------------------------------------------------------------------------------------------------------------------
1,575,693 1,048
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--5.4%
750M Hopkins Hsg. & Redev. Auth. Public Works &
Fire Station Series "A" 5% 2/1/2016 814,687 541
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $12,957,318) 14,018,742 9,320
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--3.3%
$500M Cohasset Revenue (Minnesota Power & Light Co.)
Adjustable Rate Note 1.32%** (cost $500,000) $500,000 $332
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $13,457,318) 96.5% 14,518,742 9,652
Other Assets, Less Liabilities 3.5 523,414 348
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $15,042,156 $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 3.94% with Citibank, N.A. 11/17/2015 $700M $(8,199)
======================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset daily by the issuer. The
interest rate shown is the rate in effect at December 31, 2003.
See notes to financial statements
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) and the
Lehman Brothers Municipal Bond Index.
MISSOURI FUND
GRAPH PLOTS
As of December 31, 2003
MISSOURI LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,843 9,483
Dec-95 10,483 11,151
Dec-96 10,885 11,625
Dec-97 11,913 12,693
Dec-98 12,698 13,516
Dec-99 12,442 13,237
Dec-00 13,960 14,784
Dec-01 14,542 15,542
Dec-02 16,165 17,034
Dec-03 17,043 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 5.43% (0.61%)
Five Years 6.06% 4.81%
Ten Years 6.10% 5.48%
S.E.C. 30-Day Yield 3.10%
Class B Shares
One Year 4.60% 0.60%
Five Years 5.25% 4.93%
Since Inception
(1/12/95) 6.73% 6.73%
S.E.C. 30-Day Yield 2.54%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund -- Missouri Fund (Class A shares) beginning 12/31/93
with a theoretical investment in the Lehman Brothers Municipal Bond Index
(the "Index"). The Index is a total return performance benchmark for the
investment grade tax exempt bond market. The Index does 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 the Index.
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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (1.28%),
3.83% and 4.35%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 2.49%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (0.06%), 3.98% and 5.59%, respectively, and the S.E.C. 30-Day Yield
for December 2003 would have been 1.90%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MISSOURI FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--97.5%
Education--4.2%
$125M Bowling Green School District 5.85% 3/1/2020 $142,031 $126
150M Missouri Southern State College Rev. Aux. Ent.
Sys. 5.3% 4/1/2015 167,250 148
150M Missouri State Health & Educ. Facs. Auth.
(Webster Univ.) 5 1/2% 4/1/2018 166,313 148
- ----------------------------------------------------------------------------------------------------------------------
475,594 422
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--28.5%
100M Belton School District #124, 6% 3/1/2018 116,125 103
400M Cass County Reorg. School District #2, 5 1/2% 3/1/2017 451,000 400
350M Clay County Pub. School District #53, 5% 3/1/2017 377,562 335
Greene County Reorg. School District #8:
200M 5 1/4% 3/1/2018 219,250 195
250M 5 1/4% 3/1/2019 272,500 242
300M Jackson County Reorg. School District #7, 5 1/4% 3/1/2020 326,250 290
100M Jefferson County School District #6, 6% 3/1/2014 115,750 103
150M Kansas City Streetlight Project Series "A" 5 1/4% 2/1/2016 164,813 146
400M Maplewood Richmond Heights School District
5 1/4% 3/1/2016 439,500 390
125M St. Joseph's School District 5 3/4% 3/1/2019 142,656 127
125M St. Louis County Pattonville School District #3,
5 3/4% 3/1/2017 143,437 127
150M St. Louis School District 5 3/8% 4/1/2017 165,563 147
250M Washington School District 5% 3/1/2015 273,750 243
- ----------------------------------------------------------------------------------------------------------------------
3,208,156 2,848
- ----------------------------------------------------------------------------------------------------------------------
Health Care--11.5%
400M Jackson County Spl. Oblig. Truman Medical Center
5% 12/1/2022 418,500 371
Missouri State Health & Educational Facilities Authority:
140M BJC Health System Series "A" 6 3/4% 5/15/2011 173,425 154
90M Health Midwest 6.1% 6/1/2011 93,632 83
500M North Kansas City Hospital Revenue Series "A"
5% 11/15/2020 526,875 468
80M Puerto Rico Indl. Tourist Edl. Med. & Env. Cntl. Facs.
6 1/4% 7/1/2016 85,094 76
- ----------------------------------------------------------------------------------------------------------------------
1,297,526 1,152
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--MISSOURI FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Housing--.9%
$90M Missouri State Housing Dev. Comm.
(Ecumenical Hsg.) 5.8% 3/1/2006* $98,212 $87
- ----------------------------------------------------------------------------------------------------------------------
Transportation--10.2%
400M Bi-State Dev. Agency Met. District Metrolink Cross
County Proj. Series "B" 5 1/4% 10/1/2019 438,500 389
250M Kansas City Airport Revenue Series "B" 5 1/4% 9/1/2016 276,250 245
St. Louis Airport Revenue:
150M 5 1/8% 7/1/2015 161,250 143
255M 5.3% 7/1/2021 273,488 243
- ----------------------------------------------------------------------------------------------------------------------
1,149,488 1,020
- ----------------------------------------------------------------------------------------------------------------------
Utilities--16.2%
250M Jefferson County Cons. Public Water Supply
5 1/4% 12/1/2016 279,688 248
80M Liberty Sewer System Rev. 6.15% 2/1/2015 92,900 82
Missouri State Environmental Impt. & Energy
Res. Auth. Water Pollution Control:
250M 5 1/2% 7/1/2014 288,750 257
150M 5.4% 7/1/2018 165,938 147
250M Puerto Rico Electric Power Auth. Rev. 5 3/8% 7/1/2017 281,875 250
150M St. Louis Water and Sewer Rev. 6% 7/1/2004* 156,613 139
500M Virgin Islands Water & Power Auth. Electric
Sys. Rev. 5% 7/1/2014 559,375 497
- ----------------------------------------------------------------------------------------------------------------------
1,825,139 1,620
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--26.0%
100M Clay County Public Building Auth. Leasehold Rev.
5 1/8% 5/15/2014 109,875 97
250M Kansas City Municipal Assistance Corp. Rev.
Series "A" 5% 3/1/2019 265,625 236
250M Missouri State Board Public Buildings Series "A"
5% 5/1/2021 262,187 233
Missouri State Dev. Finance Board Infrastructure
Facilities Revenue:
500M Hartman Heritage Center Phase II 5% 4/1/2020 528,125 469
125M Midtown Redevelopment Project Series "A"
6% 4/1/2014 146,875 130
500M Missouri State Regional Convention & Sports
Complex Auth. 5 1/4% 8/15/2020 543,750 483
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue (continued)
Springfield Public Building Corp. Leasehold Revenue:
$125M Capital Improvement 5.6% 6/1/2014 $142,031 $126
230M Jordan Valley 5.85% 6/1/2014 271,688 241
St. Louis Municipal Finance Corp. Leasehold Revenue:
250M Carnahan Courthouse Series "A" 5% 2/15/2020 265,000 235
City Justice Center Series "A":
225M 5 1/4% 2/15/2015 252,000 224
125M 5 3/4% 2/15/2018 142,969 127
- ----------------------------------------------------------------------------------------------------------------------
2,930,125 2,601
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $10,261,318) 97.5% 10,984,240 9,750
Other Assets, Less Liabilities 2.5 281,388 250
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $11,265,628 $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 3.95% with Citibank, N.A. 10/29/2015 $1,000M $(14,294)
======================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
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) and
the Lehman Brothers Municipal Bond Index.
NEW JERSEY FUND
GRAPH PLOTS
As of December 31, 2003
NEW JERSEY LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,863 9,483
Dec-95 10,326 11,151
Dec-96 10,645 11,625
Dec-97 11,535 12,693
Dec-98 12,208 13,516
Dec-99 11,958 13,237
Dec-00 13,203 14,784
Dec-01 13,739 15,542
Dec-02 15,074 17,034
Dec-03 15,720 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.28% (1.74%)
Five Years 5.19% 3.95%
Ten Years 5.25% 4.63%
S.E.C. 30-Day Yield 2.33%
Class B Shares
One Year 3.59% (0.41%)
Five Years 4.39% 4.05%
Since Inception
(1/12/95) 5.75% 5.75%
S.E.C. 30-Day Yield 1.73%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund -- New Jersey Fund (Class A shares) beginning
12/31/93 with a theoretical investment in the Lehman Brothers Municipal
Bond Index (the "Index"). The Index is a total return performance benchmark
for the investment grade tax exempt bond market. The Index does 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 the
Index. 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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (1.93%),
3.76% and 4.42%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 2.12%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (0.62%), 3.86% and 5.56%, respectively, and the S.E.C. 30-Day Yield
for December 2003 would have been 1.51%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--NEW JERSEY FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--97.5%
Education--19.6%
New Jersey Educational Facilities Auth. Revenue:
$2,125M College of New Jersey Series "C" 5 3/8% 7/1/2016 $2,372,031 $336
5,000M Higher Educ. Cap. Impt. Series "A" 5 1/8% 9/1/2022 5,250,000 745
1,210M Puerto Rico Indl. Tourist Edl. University Plaza
Series "A" 5 5/8% 7/1/2013 1,385,450 197
1,000M University of Medicine & Dentistry of New Jersey
Series "A" 5 3/8% 12/1/2016 1,121,250 159
University of Puerto Rico:
1,715M 5 3/4% 6/1/2017 1,985,112 282
1,500M 5 3/4% 6/1/2018 1,732,500 246
- ----------------------------------------------------------------------------------------------------------------------
13,846,343 1,965
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--15.2%
1,750M Atlantic City Board of Education 6.1% 12/1/2015 2,165,625 307
Essex County Improvement Authority:
Orange County School District:
1,025M Series "A" 6.95% 7/1/2005* 1,131,344 161
1,220M Series "B" 6.95% 7/1/2005* 1,346,575 191
1,500M Jersey City Series "B" 5% 9/1/2019 1,595,625 226
1,000M Manalapan-Englishtown Regional Board of Education
5% 10/1/2026 1,033,750 147
1,000M Perth Amboy Board of Education 5% 7/15/2017 1,075,000 153
995M Union City 6.4% 11/1/2013 1,236,287 175
1,000M West Deptford 5 1/2% 9/1/2020 1,108,750 157
- ----------------------------------------------------------------------------------------------------------------------
10,692,956 1,517
- ----------------------------------------------------------------------------------------------------------------------
Health Care--11.5%
New Jersey State Health Care Facilities
Financing Authority:
1,045M Bayonne Hospital 6 1/4% 7/1/2012 1,088,430 154
1,745M General Hospital Center at Passaic 6% 7/1/2014 2,109,269 299
1,000M Meridian Health System Oblig. Group 5 5/8% 7/1/2014 1,130,000 160
3,120M Riverview Medical Center 6 1/4% 7/1/2011 3,794,700 539
- ----------------------------------------------------------------------------------------------------------------------
8,122,399 1,152
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--NEW JERSEY FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Housing--2.7%
New Jersey State Hsg. & Mtge. Fing. Agency:
Regency Park Project:
$1,375M 6.05% 11/1/2017 $1,493,594 $212
365M 5.7% 5/1/2020 387,813 55
- ----------------------------------------------------------------------------------------------------------------------
1,881,407 267
- ----------------------------------------------------------------------------------------------------------------------
Transportation--14.3%
1,000M Burlington County Bridge Commission 5 1/4% 8/15/2021 1,065,000 151
1,000M Delaware River & Bay Auth. 5 1/2% 1/1/2016 1,125,000 159
1,000M Delaware River Port Auth. PA & NJ Rev.
5 3/4% 1/1/2022 1,126,250 160
1,000M New Jersey Econ. Dev. Auth. Rev. Light Rail Sys.
6% 5/1/2009* 1,167,500 166
1,000M New Jersey State Hwy. Auth. (Garden State Parkway)
6.2% 1/1/2010 1,170,000 166
4,100M Port Authority of New York & New Jersey
125th Series 5% 10/15/2018 4,412,625 626
- ----------------------------------------------------------------------------------------------------------------------
10,066,375 1,428
- ----------------------------------------------------------------------------------------------------------------------
Utilities--11.6%
1,250M Evesham Municipal Utilities Auth. Rev. 5% 7/1/2018 1,332,812 189
1,035M New Jersey Wastewater Treatment Trust 6 1/4% 4/1/2004* 1,068,669 152
Passaic Valley Sewer Commission:
1,250M Series "E" 5 5/8% 12/1/2018 1,418,750 201
1,000M Series "F" 5% 12/1/2020 1,056,250 150
Puerto Rico Electric Power Authority:
1,000M Series "HH" 5 1/4% 7/1/2029 1,057,500 150
2,000M Series "II" 5 3/8% 7/1/2017 2,255,000 320
- ----------------------------------------------------------------------------------------------------------------------
8,188,981 1,162
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--22.6%
2,900M Atlantic County Impt. Auth. Lux. Tax (Convention Ctr.)
7.4% 7/1/2016 3,799,000 539
1,000M Camden County Impt. Auth. Lease Rev. 5 1/8% 9/1/2019 1,070,000 152
1,665M Cape May County Indl. Poll. Cntl. Fin. Auth.
6.8% 3/1/2021 2,174,906 309
Essex County Improvement Authority:
1,000M Cogen Fac. Proj. 5 1/4% 1/1/2017 1,093,750 155
1,000M Correctional Fac. Proj. 5 1/2% 10/1/2018 1,115,000 158
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue (continued)
$1,020M Mercer County Impt. Auth. Lease Rev.
Governmental Leasing Proj. 5% 12/15/2023 $1,063,350 $151
New Jersey Economic Development Authority:
2,000M Educational Testing Service 6 1/8% 5/15/2005* 2,175,000 309
2,085M Market Transition Facility 5 7/8% 7/1/2004* 2,175,656 309
1,155M Puerto Rico Municipal Finance Agency 5 1/4% 8/1/2020 1,264,725 179
- ----------------------------------------------------------------------------------------------------------------------
15,931,387 2,261
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $62,824,044) 68,729,848 9,752
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--1.4%
1,000M New Jersey Econ. Dev. Auth. (Lawrenceville
School Proj.) Adjustable Rate Note 1 1/4%**
(cost $1,000,000) 1,000,000 142
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $63,824,044) 98.9% 69,729,848 9,894
Other Assets, Less Liabilities 1.1 744,190 106
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $70,474,038 $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 3.95% with Citibank, N.A. 10/29/2015 $5,000M $(71,467)
Receive quarterly a floating rate based on
the BMA Index and pay quarterly a fixed
rate equal to 3.94% with Citibank, N.A. 11/17/2015 1,000M (11,711)
- ----------------------------------------------------------------------------------------------------------------------
$6,000M $(83,178)
======================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset daily by the issuer. The interest
rate shown is the rate in effect at December 31, 2003.
See notes to financial statements
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)
and the Lehman Brothers Municipal Bond Index.
NORTH CAROLINA FUND
GRAPH PLOTS
As of December 31, 2003
NORTH CAROLINA LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,816 9,483
Dec-95 10,466 11,151
Dec-96 10,851 11,625
Dec-97 11,888 12,693
Dec-98 12,687 13,516
Dec-99 12,389 13,237
Dec-00 13,931 14,784
Dec-01 14,480 15,542
Dec-02 16,012 17,034
Dec-03 16,830 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 5.11% (0.94%)
Five Years 5.81% 4.56%
Ten Years 5.97% 5.34%
S.E.C. 30-Day Yield 2.38%
Class B Shares
One Year 4.30% 0.30%
Five Years 5.00% 4.67%
Since Inception
(1/12/95) 6.63% 6.63%
S.E.C. 30-Day Yield 1.78%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund -- North Carolina Fund (Class A shares) beginning
12/31/93 with a theoretical investment in the Lehman Brothers Municipal
Bond Index (the "Index"). The Index is a total return performance benchmark
for the investment grade tax exempt bond market. The Index does 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 the
Index. 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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (1.39%),
3.87% and 4.46%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 1.86%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (0.16%), 3.97% and 5.78%, respectively, and the S.E.C. 30-Day Yield
for December 2003 would have been 1.22%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--NORTH CAROLINA FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--92.1%
Certificates of Participation--15.2%
$400M Carteret County 5 5/8% 6/1/2020 $447,000 $185
1,000M Dare County 5% 6/1/2023 1,046,250 433
Harnett County:
500M 5 1/2% 12/1/2014 575,000 238
500M 5 1/8% 12/1/2023 530,625 219
250M Pitt County 5 1/4% 4/1/2015 277,812 115
250M Randolph County 5 1/2% 6/1/2015 282,188 116
500M Rutherford County Schools Proj. 5% 3/1/2023 521,875 216
- ----------------------------------------------------------------------------------------------------------------------
3,680,750 1,522
- ----------------------------------------------------------------------------------------------------------------------
Education--13.5%
500M Appalachian State Univ. Hsg. & Student Ctr.
5.6% 7/15/2020 558,750 231
430M Iredell County Public Facs. School Projs. 6% 6/1/2010* 515,462 213
500M North Carolina Capital Facs. Fin. Agy.
(Meredith College) 5 1/8% 6/1/2014 550,000 228
250M North Carolina Central Univ. Housing Rev.
5.6% 11/1/2012 277,812 115
500M University North Carolina Asheville Rev. 5% 6/1/2018 536,875 222
750M University North Carolina Sys. Pool Rev. 5 3/8% 4/1/2021 822,188 340
- ----------------------------------------------------------------------------------------------------------------------
3,261,087 1,349
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--16.3%
250M Bladen County 5.6% 5/1/2016 286,875 119
Brunswick County:
125M 5% 5/1/2017 135,938 56
500M 5 3/4% 5/1/2017 580,000 240
250M Cleveland County 5 1/2% 3/1/2012 273,750 113
750M Craven County 5% 5/1/2018 810,937 335
400M Johnston County 5% 6/1/2018 432,500 179
200M Morganton 5.7% 6/1/2005* 216,250 90
400M Onslow County 5.7% 3/1/2011 426,500 176
280M Rowan County 5.6% 4/1/2005* 301,000 124
250M Union County 5.4% 3/1/2015 280,625 116
200M Watauga County 5.9% 6/1/2004* 207,910 86
- ----------------------------------------------------------------------------------------------------------------------
3,952,285 1,634
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--NORTH CAROLINA FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care--3.8%
$250M Cumberland County Finance Corp. Installment Pmt. Rev.
(Detention Ctr. & Mental Hlth.) 5 5/8% 6/1/2017 $279,375 $116
400M North Carolina Medical Care Community Hosp. Rev.
(Northeast Med. Ctr.) 5 3/8% 11/1/2016 446,000 184
175M Puerto Rico Indl. Tourist Edl. Med. & Env. Cntl. Facs.
6 1/4% 7/1/2016 186,142 77
- ----------------------------------------------------------------------------------------------------------------------
911,517 377
- ----------------------------------------------------------------------------------------------------------------------
Housing--.4%
100M North Carolina Hsg. Fin. Agy. Multi-Family Series "F"
6.6% 7/1/2017 102,910 43
- ----------------------------------------------------------------------------------------------------------------------
Transportation--8.6%
Piedmont Triad Airport Authority Revenue:
800M 5 1/2% 7/1/2013 888,000 367
500M 5 1/4% 7/1/2016 548,125 227
520M Puerto Rico Commonwealth Hwy. & Trans. Auth. Rev.
6 1/4% 7/1/2014 644,150 267
- ----------------------------------------------------------------------------------------------------------------------
2,080,275 861
- ----------------------------------------------------------------------------------------------------------------------
Utilities--32.5%
600M Broad River Water Auth. Water Sys. Rev. 5 3/4% 6/1/2017 692,250 286
250M Buncombe County Solid Waste Sys. Rev. 5.6% 3/1/2011 274,063 113
Charlotte Storm Water Fee Revenue:
250M 5.65% 6/1/2010* 294,688 122
615M 5 1/4% 6/1/2017 683,419 283
300M Durham County Enterprise Sys. Rev. 5% 6/1/2018 324,375 134
300M Fayetteville Public Works Commission Rev.
5 1/2% 3/1/2010* 349,125 144
250M Gastonia Combined Utilities Sys. Rev. 5 5/8% 5/1/2015 286,562 119
250M Greensboro Enterprise Sys. Rev. 5% 6/1/2017 268,438 111
Greenville Combined Enterprise Sys. Revenue:
250M 5 3/4% 9/1/2014 299,687 124
250M 5 1/2% 9/1/2017 280,000 116
250M 5 1/2% 9/1/2018 278,750 115
250M Kinston Enterprise Sys. Rev. 5.7% 4/1/2012 275,000 114
220M Laurinburg Sanitation Swr. 5.3% 6/1/2012 235,400 97
200M North Carolina Eastern Municipal Pwr. Agy.
5.6% 1/1/2010 222,000 92
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities (continued)
$1,000M North Carolina Municipal Pwr. Agy. (Catawba Elec.)
5 1/4% 1/1/2018 $1,092,500 $452
650M Puerto Rico Electric Pwr. Auth. Rev. 5 1/4% 71/2022 704,437 291
1,210M Union County Enterprise Sys. Rev. 5% 6/1/2019 1,294,700 536
- ----------------------------------------------------------------------------------------------------------------------
7,855,394 3,249
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--1.8%
390M Fayetteville Finance Corp. Inst. Municipal Bldg. Prog.
5.7% 2/1/2010 427,538 177
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $20,478,126) 22,271,756 9,212
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--6.6%
Adjustable Rate Notes**
600M North Carolina Medical Care Community Hosp. Rev.
(Rowan Regional Med.) 1.18% 600,000 248
1,000M University of North Carolina (Chapel Hill Rev.) 1.16% 1,000,000 414
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Tax Exempt Investments
(cost $1,600,000) 1,600,000 662
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $22,078,126) 98.7% 23,871,756 9,874
Other Assets, Less Liabilities 1.3 306,089 126
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $24,177,845 $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 3.945% with Citibank, N.A. 11/12/2013 $1,100M $(27,435)
======================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset daily by the issuer. The interest
rates shown are the rates in effect at December 31, 2003.
See notes to financial statements
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) and the
Lehman Brothers Municipal Bond Index.
OHIO FUND
GRAPH PLOTS
As of December 31, 2003
OHIO LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,869 9,483
Dec-95 10,408 11,151
Dec-96 10,848 11,625
Dec-97 11,785 12,693
Dec-98 12,405 13,516
Dec-99 12,186 13,237
Dec-00 13,565 14,784
Dec-01 14,115 15,542
Dec-02 15,638 17,034
Dec-03 16,391 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.82% (1.18%)
Five Years 5.73% 4.49%
Ten Years 5.69% 5.06%
S.E.C. 30-Day Yield 2.37%
Class B Shares
One Year 4.04% 0.04%
Five Years 4.93% 4.59%
Since Inception
(1/12/95) 6.25% 6.25%
S.E.C. 30-Day Yield 1.77%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund -- Ohio Fund (Class A shares) beginning 12/31/93 with
a theoretical investment in the Lehman Brothers Municipal Bond Index (the
Index). The Index is a total return performance benchmark for the
investment grade tax exempt bond market. The Index does 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 the Index.
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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (1.60%),
4.05% and 4.62%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 1.90%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (0.40%), 4.15% and 5.80%, respectively, and the S.E.C. 30-Day Yield
for December 2003 would have been 1.27%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--OHIO FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--93.2%
Education--12.9%
$1,200M Cincinnati Tech. College Gen. Receipts 5 1/4% 10/1/2020 $1,312,500 $480
1,000M Cuyahoga Cmnty. College District Gen. Receipts
5% 12/1/2022 1,051,250 385
1,000M University Akron Gen. Receipts 6% 1/1/2016 1,167,500 427
- ----------------------------------------------------------------------------------------------------------------------
3,531,250 1,292
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--63.2%
1,000M Adams County Valley Local School District
7% 12/1/2015 1,311,250 480
1,000M Akron-Summit County Public Library 5% 12/1/2018 1,073,750 393
800M Avon Local School District 6 1/2% 12/1/2015 1,019,000 373
1,000M Beaver Creek Local School District 6.6% 12/1/2015 1,283,750 470
425M Bedford Heights Jail Facilities 6 1/2% 12/1/2014 452,923 166
500M Brecksville-Broadview Heights City School District
6 1/2% 12/1/2016 571,250 209
500M Clyde-Green Springs Exempted Village Local
School District 7% 12/1/2013 557,500 204
450M Dublin 6.4% 12/1/2014 550,125 201
1,000M Dublin City School District Facility Construction &
Improvement 5% 12/1/2021 1,058,750 387
525M East Clinton Local School District 6 7/8% 12/1/2005* 584,063 214
1,135M Eaton City School District 5 3/8% 12/1/2018 1,275,456 466
700M Garfield Heights 6.3% 12/1/2014 744,744 272
655M Jefferson County Jail Construction 5 3/4% 12/1/2019 789,275 289
1,000M Licking County Joint Voc. School District 5% 12/1/2020 1,060,000 388
1,300M Lorain 5 1/2% 12/1/2018 1,464,125 535
250M North Fork Local School District 5 3/4% 12/1/2018 301,562 110
500M North Royalton City School District 6% 12/1/2014 595,625 218
1,000M Oakwood City School District 5% 12/1/2020 1,066,250 390
350M Portage County 6.2% 12/1/2014 372,057 136
240M Shaker Heights City School District 7.1% 12/15/2010 280,500 103
750M Youngstown 6% 12/1/2031 864,375 316
- ----------------------------------------------------------------------------------------------------------------------
17,276,330 6,320
- ----------------------------------------------------------------------------------------------------------------------
Health Care--2.0%
500M Lorain County Hosp. Rev. (Catholic Healthcare
Partners) 5 1/2% 9/1/2011 558,125 204
- ----------------------------------------------------------------------------------------------------------------------
Utilities--6.6%
600M Alliance Sewer System Rev. 6% 10/15/2010 633,252 232
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--OHIO FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities (continued)
$280M Hamilton Wastewater Rev. 5.9% 10/15/2011 $311,850 $114
500M Mahoning Valley Sanitary District Water Rev.
5 3/4% 11/15/2018 572,500 209
250M Ohio State Water Dev. Auth. Rev. Pure Water Series "I"
7% 12/1/2009 291,562 107
- ----------------------------------------------------------------------------------------------------------------------
1,809,164 662
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--8.5%
1,000M Hamilton County Sales Tax 5 3/4% 12/1/2013 1,172,500 429
1,000M New Albany Cmnty. Auth. Dev. 5 1/2% 10/1/2015 1,138,750 416
- ----------------------------------------------------------------------------------------------------------------------
2,311,250 845
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $23,026,153) 25,486,119 9,323
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--6.2%
Adjustable Rate Notes **
300M Cuyahoga County Hospital Rev. (Univ. Hosp.
Cleveland) 1.16% 300,000 110
800M Ohio State Air Quality Dev. Auth. Poll. Cntl.
Rev. 1.3% 800,000 293
600M Puerto Rico Commonwealth Govt. Dev. Bank 1.06% 600,000 219
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Tax Exempt Investments
(cost $1,700,000) 1,700,000 622
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $24,726,153) 99.4% 27,186,119 9,945
Other Assets, Less Liabilities .6 150,181 55
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $27,336,300 $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 3.95% with Citibank, N.A. 10/29/2015 $2,600M $(37,163)
======================================================================================================================
* 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 the rates in effect at December 31, 2003.
See notes to financial statements
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) and the
Lehman Brothers Municipal Bond Index.
OREGON FUND
GRAPH PLOTS
As of December 31, 2003
OREGON LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,799 9,483
Dec-95 10,382 11,151
Dec-96 10,763 11,625
Dec-97 11,836 12,693
Dec-98 12,580 13,516
Dec-99 12,335 13,237
Dec-00 13,697 14,784
Dec-01 14,251 15,542
Dec-02 15,682 17,034
Dec-03 16,408 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.63% (1.39%)
Five Years 5.46% 4.21%
Ten Years 5.70% 5.08%
S.E.C. 30-Day Yield 2.45%
Class B Shares
One Year 3.96% (0.04%)
Five Years 4.65% 4.32%
Since Inception
(1/12/95) 6.36% 6.36%
S.E.C. 30-Day Yield 1.85%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund -- Oregon Fund (Class A shares) beginning 12/31/93
with a theoretical investment in the Lehman Brothers Municipal Bond Index
(the "Index"). The Index is a total return performance benchmark for the
investment grade tax exempt bond market. The Index does 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 the Index.
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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (1.82%),
3.62% and 4.31%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 2.02%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (0.49%), 3.72% and 5.53%, respectively, and the S.E.C. 30-Day Yield
for December 2003 would have been 1.40%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--OREGON FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--94.6%
Certificates of Participation--4.3%
Oregon State Dept. of Administrative Services:
$500M 5.65% 5/1/2007* $565,000 $196
500M 5 1/4% 5/1/2017 552,500 192
100M Washington County Educational Service District
7% 6/1/2005* 108,000 38
- ----------------------------------------------------------------------------------------------------------------------
1,225,500 426
- ----------------------------------------------------------------------------------------------------------------------
Education--6.1%
200M Chemeketa Community College District 6.4% 7/1/2009 214,000 74
1,250M Oregon Health Sciences Univ. Rev. 5 1/4% 7/1/2022 1,342,188 467
200M Oregon State Hlth. & Hsg. Educ. & Cult. Facs.
(Lewis & Clark College) 6% 10/1/2013 210,652 73
- ----------------------------------------------------------------------------------------------------------------------
1,766,840 614
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--55.1%
1,000M Benton and Linn County School District #509J
(Corvallis) 5% 6/1/2020 1,063,750 370
300M Chemeketa Community College District
5.8% 6/1/2006* 330,375 115
1,000M Deschutes County 5% 12/1/2015 1,102,500 383
500M Deschutes County Administrative School District #1
(Bend LA Pine) 5 1/2% 6/15/2016 562,500 196
1,055M Gresham 5 3/8% 6/1/2017 1,180,281 410
250M Jackson County School District #4 (Phoenix)
5 1/2% 6/15/2016 281,250 98
635M Jefferson County School District #509J 5 1/4% 6/15/2019 693,738 241
500M Josephine County School District (Three Rivers)
5 1/4% 6/15/2017 547,500 190
245M La Grande 5 5/8% 6/1/2011 265,519 92
200M Lane County School District #019 (Springfield)
6 1/4% 10/15/2004* 210,066 73
Linn County School District:
250M #9 (Lebanon) 6 1/8% 6/15/2010* 299,688 104
500M #055 (Sweet Home) 5 1/2% 6/15/2025 538,125 187
180M #095 (Scio) 5 3/4% 7/15/2011 196,425 68
1,000M Metro 5% 1/1/2010 1,120,000 390
250M Morrow County School District #1, 5 5/8% 6/15/2014 284,375 99
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
General Obligations (continued)
$250M Multnomah County School District #7 (Reynolds)
5 5/8% 6/15/2014 $283,750 $99
Polk Marion & Benton Counties School District #13J:
200M 5 1/2% 12/1/2004* 209,954 73
760M 5 5/8% 6/15/2016 865,450 301
1,000M Puerto Rico Commonwealth 6 1/4% 7/1/2013 1,231,250 428
600M Southwestern Community College District
6.05% 6/1/2010* 716,250 249
250M Tillamook County 5.6% 1/15/2007* 277,187 97
Umatilla County School District #016R (Pendleton):
200M 6% 7/1/2004* 206,828 72
500M 5 1/4% 7/1/2014 573,125 199
520M Wasco County School District #12, 5 1/2% 6/15/2018 610,350 212
Washington and Clackamas County School
District #23 (Tigard):
600M 5 1/4% 6/1/2016 690,750 240
1,000M 5 3/8% 6/15/2020 1,102,500 383
Washington County School District:
170M #003JT (Hillsboro) 6% 11/1/2005* 184,025 64
200M #088J (Sherwood) 6.1% 6/1/2005* 213,500 74
- ----------------------------------------------------------------------------------------------------------------------
15,841,011 5,507
- ----------------------------------------------------------------------------------------------------------------------
Housing--.8%
Oregon State Housing & Community Svcs. Dept.
Mortgage Rev. Single-Family Mortgage Program:
85M 6% 7/1/2012 89,037 31
140M 5.95% 7/1/2013 148,925 52
- ----------------------------------------------------------------------------------------------------------------------
237,962 83
- ----------------------------------------------------------------------------------------------------------------------
Transportation--6.4%
Oregon State Department of Transportation Revenue:
100M 6.2% 6/2/2004* 104,076 36
200M 6 1/4% 6/2/2004* 208,192 73
500M Portland Airport Way Urban Renewal & Redevelopment
6% 6/15/2016 572,500 199
Puerto Rico Commonwealth Hwy. & Trans. Auth. Revenue:
500M 6 1/4% 7/1/2014 619,375 215
300M 5 3/4% 7/1/2018 346,125 120
- ----------------------------------------------------------------------------------------------------------------------
1,850,268 643
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--OREGON FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities--15.5%
$440M Columbia River Oregon Peoples Utility District
Elec. Sys. 5.55% 12/1/2020 $489,500 $170
125M Emerald Peoples Utility District 7.35% 11/1/2011 160,625 56
600M Eugene Water Utility System 5.8% 8/1/2020 681,750 237
200M Klamath Falls Water Revenue 6.1% 6/1/2004* 206,080 72
250M Marion County Solid Waste & Electric
Revenue 5 3/8% 10/1/2008 272,188 95
250M Portland Gas Tax Revenue 5 3/4% 6/1/2012 271,875 94
Portland Sewer System Revenue Series "A":
400M 6.2% 6/1/2004* 412,320 143
300M 5 1/4% 6/1/2020 327,000 114
Puerto Rico Electric Power Authority:
500M 5 1/8% 7/1/2026 528,125 183
500M 5 1/4% 7/1/2029 528,750 184
250M Salem Water & Sewer Revenue 5 1/2% 6/1/2006* 273,437 95
250M Washington County Unified Sewer Agy. 5 3/4% 10/1/2012 296,250 103
- ----------------------------------------------------------------------------------------------------------------------
4,447,900 1,546
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--6.4%
500M Oregon State Administrative Services Lottery
5 3/4% 4/1/2014 574,375 200
Portland Urban Renewal & Redevelopment:
700M 5 3/4% 6/15/2017 805,875 280
405M 5 1/2% 6/15/2020 448,537 156
- ----------------------------------------------------------------------------------------------------------------------
1,828,787 636
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $25,070,693) 27,198,268 9,455
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--3.1%
Adjustable Rate Notes**
$400M Oregon State Hlth. Hsg. Educ. & Cult. Facs.
Auth. 1.18% $400,000 $139
500M Puerto Rico Commonwealth Govt. Dev. Bank 1.06% 500,000 174
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Tax Exempt Investments (cost $900,000) 900,000 313
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $25,970,693) 97.7% 28,098,268 9,768
Other Assets, Less Liabilities 2.3 667,650 232
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $28,765,918 $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 3.95% with Citibank, N.A. 10/29/2015 $2,700M $(38,592)
======================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset weekly by the issuer. The interest
rates shown are the rates in effect at December 31, 2003.
See notes to financial statements
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)
and the Lehman Brothers Municipal Bond Index.
PENNSYLVANIA FUND
GRAPH PLOTS
As of December 31, 2003
PENNSYLVANIA LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,832 9,483
Dec-95 10,448 11,151
Dec-96 10,802 11,625
Dec-97 11,790 12,693
Dec-98 12,406 13,516
Dec-99 12,129 13,237
Dec-00 13,498 14,784
Dec-01 14,102 15,542
Dec-02 15,614 17,034
Dec-03 16,265 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.17% (1.83%)
Five Years 5.57% 4.32%
Ten Years 5.61% 4.98%
S.E.C. 30-Day Yield 2.09%
Class B Shares
One Year 3.45% (0.55%)
Five Years 4.77% 4.44%
Since Inception
(1/12/95) 6.22% 6.22%
S.E.C. 30-Day Yield 1.47%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund -- Pennsylvania Fund (Class A shares) beginning
12/31/93 with a theoretical investment in the Lehman Brothers Municipal
Bond Index (the "Index"). The Index is a total return performance benchmark
for the investment grade tax exempt bond market. The Index does 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 the
Index. 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 12/31/03)
include the reinvestment of all dividends and 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
Return for One Year, Five Years and Ten Years would have been (2.08%),
4.05% and 4.68%, respectively, and the S.E.C. 30-Day Yield for December
2003 would have been 1.83%. The Class B "S.E.C. Standardized" Average
Annual Total Return for One Year, Five Years and Since Inception would have
been (0.81%), 4.16 and 5.93%, respectively, and the S.E.C. 30-Day Yield for
December 2003 would have been 1.20%. Results represent past performance and
do not indicate future results. 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
Bond Index figures are from Lehman Brothers, Inc. and all other figures are
from First Investors Management Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--PENNSYLVANIA FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--95.3%
Education--11.5%
$1,000M Pennsylvania State Higher Educ. Assistance Agy.
6 1/8% 12/15/2010* $1,205,000 $247
Pennsylvania State Higher Educ. Facs. Authority:
1,410M 5 1/2% 6/15/2014 1,596,825 328
1,000M 5% 6/15/2018 1,066,250 219
State Public School Bldg. Auth. College Revenue:
1,000M Butler Cnty. Cmnty. College Proj. 5.7% 7/15/2010* 1,176,250 242
500M Delaware Cnty. Cmnty. College Proj. 5 3/4% 10/1/2016 577,500 119
- ----------------------------------------------------------------------------------------------------------------------
5,621,825 1,155
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--30.7%
1,000M Adams County 5 3/8% 5/15/2011* 1,156,250 238
1,000M Ambridge Pennsylvania Area Sch. Dist. Series "B"
5 1/8% 5/1/2023 1,047,500 215
1,000M Erie 5.7% 5/15/2007* 1,123,750 231
1,545M Garnet Valley School District 5 1/2% 4/1/2014 1,763,231 362
1,000M General McLane School District 5 3/4% 5/15/2007* 1,125,000 231
1,065M Mifflin County 5 1/2% 9/1/2020 1,172,831 241
1,365M Owen J. Roberts School District 5 1/2% 8/15/2016 1,542,450 317
1,000M Pennsbury School District 5 1/2% 1/15/2017 1,121,250 230
385M Philadelphia 6% 11/15/2014 407,796 84
Philadelphia School District:
1,180M 6% 3/1/2015 1,385,025 284
1,000M 5 1/2% 2/1/2026 1,080,000 222
1,600M Pittsburgh 5 1/2% 9/1/2014 1,818,000 373
200M Stroudsburg Area School District 5.8% 10/1/2005* 215,250 44
- ----------------------------------------------------------------------------------------------------------------------
14,958,333 3,072
- ----------------------------------------------------------------------------------------------------------------------
Health Care--13.9%
Allegheny County Hospital Development Authority:
1,000M Allegheny General Hospital Proj. 6.2% 9/1/2007* 1,146,250 235
Health Center--University of Pittsburgh:
1,000M 5.6% 4/1/2013 1,100,000 226
1,000M 5.65% 4/1/2014 1,101,250 226
1,000M Berks County Municipal Auth. Hosp. (Reading
Hosp. Med. Ctr.) 5.7% 10/1/2014 1,175,000 241
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--PENNSYLVANIA FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care (continued)
$1,000M Dauphin County General Hlth. Sys. (Pinnacle
Hlth. Sys.) 5 1/2% 5/15/2013 $1,093,750 $225
1,000M Pennsylvania State Higher Edl. Facs. Auth.
Hlth. Svcs. 5.7% 11/15/2011 1,152,500 237
- ----------------------------------------------------------------------------------------------------------------------
6,768,750 1,390
- ----------------------------------------------------------------------------------------------------------------------
Transportation--3.6%
1,620M Allegheny County Port. Auth. Spl. Rev. 5 1/4% 3/1/2020 1,743,525 358
- ----------------------------------------------------------------------------------------------------------------------
Utilities--19.7%
1,000M Allegheny County Sanitation Auth. Sewer Rev.
6 1/4% 12/1/2014 1,063,470 218
1,325M Bucks County Water & Sewer Auth. Rev.
5 3/8% 6/1/2019 1,454,187 299
1,000M Erie Sewer Authority Rev. 5 7/8% 6/1/2010* 1,182,500 243
1,000M Philadelphia Water & Wastewater Rev. 6 1/4% 8/1/2012 1,213,750 249
2,950M Pittsburgh Water & Sewer Auth. 6 1/2% 9/1/2013 3,602,688 740
1,000M Washington County Indl. Dev. Auth. (West Penn Pwr. Co.)
6.05% 4/1/2014 1,068,750 220
- ----------------------------------------------------------------------------------------------------------------------
9,585,345 1,969
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--15.9%
1,000M Pennsylvania Intergovernmental Coop. Auth.
Spl. Tax Rev. 7% 6/15/2005* 1,081,250 222
1,000M Pennsylvania State Indl. Dev. Auth. 6% 1/1/2012 1,025,000 210
Philadelphia Auth. Indl. Dev. Lease Revenue:
1,000M 5 1/2% 10/1/2014 1,135,000 233
1,000M 5 1/2% 10/1/2016 1,123,750 231
1,000M Philadelphia Housing Auth. Rev. Bonds Series "A"
5 1/2% 12/1/2019 1,122,500 231
Philadelphia Redev. Neighborhood Transformation
Series "A":
1,000M 5 1/2% 4/15/2016 1,126,250 231
1,000M 5 1/2% 4/15/2019 1,108,750 228
- ----------------------------------------------------------------------------------------------------------------------
7,722,500 1,586
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $41,628,243) 46,400,278 9,530
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--3.3%
$1,600M Delaware County PA. Indl. Dev. Auth. Arpt. Facs. Rev.
Adjustable Rate Note 1.14%** (cost $1,600,000) $1,600,000 $329
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $43,228,243) 98.6% 48,000,278 9,859
Other Assets, Less Liabilities 1.4 688,457 141
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $48,688,735 $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 3.945% with Citibank, N.A. 11/12/2013 $2,400M $(59,858)
======================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset daily by the issuer. The interest
rate shown is the rate in effect at December 31, 2003.
See notes to financial statements
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) and the
Lehman Brothers Municipal Bond Index.
VIRGINIA FUND
GRAPH PLOTS
As of December 31, 2003
VIRGINIA LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
Dec-93 $ 9,425 $10,000
Dec-94 8,861 9,483
Dec-95 10,405 11,151
Dec-96 10,766 11,625
Dec-97 11,738 12,693
Dec-98 12,405 13,516
Dec-99 12,080 13,237
Dec-00 13,465 14,784
Dec-01 14,009 15,542
Dec-02 15,429 17,034
Dec-03 16,142 17,938
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 4.62% (1.43%)
Five Years 5.41% 4.16%
Ten Years 5.53% 4.91%
S.E.C. 30-Day Yield 2.39%
Class B Shares
One Year 3.89% (0.11%)
Five Years 4.60% 4.26%
Since Inception
(1/12/95) 6.09% 6.09%
S.E.C. 30-Day Yield 1.79%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund-- Virginia Fund (Class A shares)
beginning 12/31/93 with a theoretical investment in the Lehman Brothers
Municipal Bond Index (the "Index"). The Index is a total return
performance benchmark for the investment grade tax exempt bond market.
The Index does 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 the Index. 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
12/31/03) include the reinvestment of all dividends and 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 Return for One Year, Five
Years and Ten Years would have been (1.72%), 3.80% and 4.50%,
respectively, and the S.E.C. 30-Day Yield for December 2003 would have
been 2.13%. The Class B "S.E.C. Standardized" Average Annual Total
Return for One Year, Five Years and Since Inception would have been
(0.41%), 3.89% and 5.70%, respectively, and the S.E.C. 30-Day Yield for
December 2003 would have been 1.52%. Results represent past performance
and do not indicate future results. 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 Bond Index figures are from Lehman Brothers, Inc. and
all other figures are from First Investors Management Company, Inc.
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--VIRGINIA FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--92.7%
Education--6.6%
$575M George Mason University 6 3/8% 2/1/2005* $618,453 $139
1,100M Norfolk Redev. & Housing Auth. (Tidewater
Cmnty. College) 5 7/8% 11/1/2005* 1,210,000 271
1,000M Virginia College Building Auth. Educ. Facs. Rev.
5 1/4% 2/1/2017 1,101,250 247
- ----------------------------------------------------------------------------------------------------------------------
2,929,703 657
- ----------------------------------------------------------------------------------------------------------------------
General Obligations--27.6%
1,000M Hampton 5 3/4% 2/1/2014 1,165,000 261
1,065M Harrisonburg Public Safety & Steam Plant Series "A"
5% 7/15/2020 1,138,219 255
1,000M Lunenburg County 5 14% 2/1/2029 1,061,250 238
Norfolk:
1,730M 5% 7/1/2020 1,835,962 412
1,100M 5% 7/1/2021 1,160,500 260
980M Portsmouth Public Utility 5 12% 8/1/2019 1,002,628 225
Richmond:
1,000M 5 3/8% 1/15/2015 1,117,500 250
1,000M 5 1/2% 1/15/2017 1,130,000 253
1,000M 5% 7/15/2019 1,071,250 240
1,000M Roanoke Public Improvement Series "A"
5 1/4% 10/1/2020 1,096,250 246
500M Virginia State Public School Auth. 6 1/2% 8/1/2004* 525,515 118
- ----------------------------------------------------------------------------------------------------------------------
12,304,074 2,758
- ----------------------------------------------------------------------------------------------------------------------
Health Care--9.5%
1,050M Danville Indl. Dev. Auth. (Danville Reg. Med. Ctr.)
6 3/8% 10/1/2004* 1,101,692 247
Roanoke Industrial Development Authority:
1,000M Carilion Health Sys. Series "A" 5 1/2% 7/1/2021 1,101,250 247
1,675M Roanoke Memorial Hosp. Proj. 6 1/8% 7/1/2017 2,058,156 461
- ----------------------------------------------------------------------------------------------------------------------
4,261,098 955
- ----------------------------------------------------------------------------------------------------------------------
Transportation--10.2%
Metropolitan Washington DC Airport Auth. System:
960M Series "B" 5.1% 10/1/2021 1,006,800 226
500M Series "B" 5 1/8% 10/1/2022 523,750 117
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
First Investors Multi-State Insured Tax Free Fund--VIRGINIA FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Transportation (continued)
$1,585M Norfolk Airport Auth. 5 3/8% 7/1/2015 $1,771,237 $397
1,000M Puerto Rico Commonwealth. Hwy. & Trans. Auth.
Rev. 6 1/4% 7/1/2014 1,241,250 278
- ----------------------------------------------------------------------------------------------------------------------
4,543,037 1,018
- ----------------------------------------------------------------------------------------------------------------------
Utilities--14.2%
1,165M Bristol Utility Sys. Rev. 5 3/4% 7/15/2015 1,390,719 312
1,000M Norfolk Water Rev. 5 7/8% 11/1/2015 1,095,000 245
500M Powhatan Cnty. Econ. Dev. Auth. Lease Rev.
5 1/8% 7/15/2018 546,875 123
Puerto Rico Electric Power Authority:
1,000M 5 3/8% 7/1/2017 1,127,500 253
1,000M Series "II" 5 1/4% 7/1/2022 1,083,750 243
1,000M Virginia Beach Water & Sewer Rev. 5% 10/1/2018 1,066,250 239
- ----------------------------------------------------------------------------------------------------------------------
6,310,094 1,415
- ----------------------------------------------------------------------------------------------------------------------
Other Revenue--24.6%
500M Frederick County Indl. Dev. Auth. (Govt.
Complex Proj.) 6 1/2% 12/1/2004* 534,320 120
1,000M Gloucester County Indl. Dev. Auth. (Courthouse Proj.)
5 3/8% 11/1/2020 1,093,750 245
1,000M Hampton Convention Center Rev. 5 1/4% 1/15/2016 1,120,000 251
500M Henrico County Econ. Dev. Auth. (Regional Jail Proj.)
5 5/8% 11/1/2015 574,375 129
1,000M Middlesex County Indl. Dev. Auth. Lease Rev.
5 1/8% 8/1/2023 1,061,250 238
1,000M Montgomery County Indl. Dev. Auth. Series "C"
6% 1/15/2017 1,171,250 263
1,000M Richmond Redev. & Housing Auth. (Old Manchester
Projects) 6.8% 3/1/2005* 1,085,000 243
1,000M Riverside Regional Jail Auth. Facs. Revenue
5 7/8% 7/1/2005* 1,087,500 244
Southwest Regional Jail Authority Revenue:
1,000M 5 1/8% 9/1/2021 1,058,750 237
1,020M 5 1/8% 9/1/2022 1,072,275 240
1,010M Virginia State Res. Auth. Infrastructure Rev. Series "B"
5 1/2% 5/1/2018 1,127,413 253
- ----------------------------------------------------------------------------------------------------------------------
10,985,883 2,463
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $38,099,282) 41,333,889 9,266
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--4.7%
Adjustable Rate Notes**
$595M Alexandria Redev. & Housing Auth. Res. Care
Facs. Rev. 1.18% $595,000 $134
300M Peninsula Ports Auth. Coal Terminal Rev. 1.16% 300,000 67
400M Puerto Rico Commonwealth Govt. Dev. Bank 1.06% 400,000 90
800M Roanoke Indl. Dev. Auth. 1.18% 800,000 179
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Tax Exempt Investments (cost $2,095,000) 2,095,000 470
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $40,194,282) 97.4% 43,428,889 9,736
Other Assets, Less Liabilities 2.6 1,180,068 264
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $44,608,957 $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 3.94% with Citibank, N.A. 11/17/2015 $2,100M $(24,594)
======================================================================================================================
* 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 the rates in effect at December 31, 2003.
See notes to financial statements
Statement of Assets and Liabilities
FIRST INVESTORS
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
INSURED
TAX-EXEMPT INTERMEDIATE INSURED INSURED
MONEY MARKET TAX EXEMPT TAX EXEMPT TAX EXEMPT II
- ----------------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $17,489,795 $68,292,256 $769,647,465 $93,807,212
============ ============ ============ ============
At value (Note 1A) $17,489,795 $70,108,288 $875,183,630 $98,457,341
Cash (overdraft) (585,679) 86,852 492,777 394,026
Receivables:
Interest 91,828 673,909 14,522,237 1,045,783
Investment securities sold -- -- -- 2,246,931
Shares sold -- 117,672 31,716 112,939
Other assets 4,891 -- 81,733 --
------------ ------------ ------------ ------------
Total Assets 17,000,835 70,986,721 890,312,093 102,257,020
------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased -- 1,048,204 -- 4,069,732
Distributions payable 1,078 82,900 1,476,883 159,418
Shares redeemed 10,900 11,262 269,048 130,754
Unrealized loss on swap agreements -- 12,471 1,097,396 135,787
Accrued advisory fees 7,326 31,387 495,494 52,748
Accrued shareholder servicing costs 2,635 3,549 52,582 6,765
Accrued expenses 12,798 14,373 60,338 10,227
------------ ------------ ------------ ------------
Total Liabilities 34,737 1,204,146 3,451,741 4,565,431
------------ ------------ ------------ ------------
Net Assets $16,966,098 $69,782,575 $886,860,352 $97,691,589
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $16,966,098 $67,966,409 $782,254,858 $93,172,565
Undistributed net investment income -- 12,605 316,606 4,101
Accumulated net realized gain (loss)
on investments. -- -- (149,881) 581
Net unrealized appreciation in value
of investments and swap agreements -- 1,803,561 104,438,769 4,514,342
------------ ------------ ------------ ------------
Total $16,966,098 $69,782,575 $886,860,352 $97,691,589
============ ============ ============ ============
Net Assets:
Class A $16,902,194 $57,102,857 $882,284,752 $80,299,850
Class B $ 63,904 $12,679,718 $ 4,575,600 $17,391,739
Shares outstanding (Note 2):
Class A 16,902,194 8,783,781 84,704,033 5,210,848
Class B 63,904 1,947,122 439,959 1,129,274
Net asset value and redemption price
per share -- Class A $1.00+ $6.50 $10.42 $15.41
====== ====== ====== ======
Maximum offering price per share -- Class A
(Net asset value/.9425)* N/A $6.90 $11.06 $16.35
====== ====== ====== ======
Net asset value and offering price per
share -- Class B (Note 2) $1.00 $6.51 $10.40 $15.40
====== ====== ====== ======
* On purchases of $100,000 or more, the sales charge is reduced.
+ Also maximum offering price per share.
See notes to financial statements
Statement of Assets and Liabilities
FIRST INVESTORS
December 31, 2003
- ------------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-------------------------------------------
NEW YORK
INSURED
TAX FREE ARIZONA CALIFORNIA COLORADO
- ------------------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $175,514,400 $22,676,975 $27,556,997 $12,380,994
============ ============ ============ ============
At value (Note 1A) $191,150,241 $24,462,618 $30,114,632 $13,336,854
Cash (overdraft) 582,671 31,654 35,696 261,922
Receivables:
Interest 2,800,918 490,226 456,486 73,323
Investment securities sold -- -- -- --
Shares sold 23,807 1,008 24,453 --
Other assets 10,408 -- 628 --
------------ ------------ ------------ ------------
Total Assets 194,568,045 24,985,506 30,631,895 13,672,099
------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased -- -- -- --
Distributions payable 457,076 62,760 61,442 13,342
Shares redeemed 168,043 60,598 24,375 1,781
Unrealized loss on swap agreements 271,574 14,054 41,451 14,965
Accrued advisory fees 104,536 8,997 11,028 3,067
Accrued shareholder servicing costs 9,304 961 1,185 759
Accrued expenses 29,961 8,100 4,356 4,616
------------ ------------ ------------ ------------
Total Liabilities 1,040,494 155,470 143,837 38,530
------------ ------------ ------------ ------------
Net Assets $193,527,551 $24,830,036 $30,488,058 $13,633,569
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $177,918,759 $23,052,784 $27,961,363 $12,719,539
Undistributed net investment income 244,525 5,663 10,511 9,055
Accumulated net realized gain (loss)
on investments. -- -- -- (35,920)
Net unrealized appreciation in value
of investments and swap agreements 15,364,267 1,771,589 2,516,184 940,895
------------ ------------ ------------ ------------
Total $193,527,551 $24,830,036 $30,488,058 $13,633,569
============ ============ ============ ============
Net Assets:
Class A $184,944,495 $21,708,825 $26,977,410 $11,955,552
Class B $ 8,583,056 $ 3,121,211 $ 3,510,648 $ 1,678,017
Shares outstanding (Note 2):
Class A 12,473,818 1,551,535 2,156,416 861,348
Class B 579,470 223,047 280,547 120,954
Net asset value and redemption price
per share -- Class A $14.83 $13.99 $12.51 $13.88
====== ====== ====== ======
Maximum offering price per share -- Class A
(Net asset value/.9425)* $15.73 $14.84 $13.27 $14.73
====== ====== ====== ======
Net asset value and offering price per
share -- Class B (Note 2) $14.81 $13.99 $12.51 $13.87
====== ====== ====== ======
Statement of Assets and Liabilities
FIRST INVESTORS
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
------------------------------------------------------------
CONNECTICUT FLORIDA GEORGIA MARYLAND
- ----------------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $34,115,649 $36,689,997 $10,112,594 $31,187,162
============ ============ ============ ============
At value (Note 1A) $36,437,491 $39,787,016 $10,985,750 $33,653,919
Cash 221,411 507,780 336,236 129,072
Receivables:
Interest 616,271 548,757 140,770 612,239
Shares sold 36,404 121,681 80,159 6,496
Other assets -- -- -- --
------------ ------------ ------------ ------------
Total Assets 37,311,577 40,965,234 11,542,915 34,401,726
------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased -- -- 266,155 1,288,875
Distributions payable 74,215 92,049 23,495 56,941
Shares redeemed 20,298 16,815 37,337 21,398
Unrealized loss on swap agreements -- 55,744 14,293 45,739
Accrued advisory fees 16,935 18,337 2,460 14,860
Accrued shareholder servicing costs 1,671 1,645 452 1,290
Accrued expenses 5,600 771 1,663 5,021
------------ ------------ ------------ ------------
Total Liabilities 118,719 185,361 345,855 1,434,124
------------ ------------ ------------ ------------
Net Assets $37,192,858 $40,779,873 $11,197,060 $32,967,602
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $34,858,564 $37,709,630 $10,330,402 $30,531,094
Undistributed net investment income 12,452 28,968 7,795 15,483
Accumulated net realized gain (loss)
on investments. -- -- -- 7
Net unrealized appreciation in value
of investments and swap agreements 2,321,842 3,041,275 858,863 2,421,018
------------ ------------ ------------ ------------
Total $37,192,858 $40,779,873 $11,197,060 $32,967,602
============ ============ ============ ============
Net Assets:
Class A $31,233,600 $37,425,741 $9,633,359 $26,934,200
Class B $ 5,959,258 $ 3,354,132 $1,563,701 $ 6,033,402
Shares outstanding (Note 2):
Class A 2,308,377 2,710,982 695,264 1,895,122
Class B 440,773 242,868 112,964 424,309
Net asset value and redemption price
per share -- Class A $13.53 $13.81 $13.86 $14.21
====== ====== ====== ======
Maximum offering price per share --
Class A (Net asset value/.9425)* $14.36 $14.65 $14.71 $15.08
====== ====== ====== ======
Net asset value and offering price
per share -- Class B (Note 2) $13.52 $13.81 $13.84 $14.22
====== ====== ====== ======
* On purchases of $100,000 or more, the sales charge is reduced.
See notes to financial statements
Statement of Assets and Liabilities
FIRST INVESTORS
December 31, 2003
- ------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
---------------------------------------------
MASSACHUSETTS MICHIGAN MINNESOTA
- ------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $26,897,410 $38,504,749 $13,457,318
============ ============ ============
At value (Note 1A) $29,413,207 $42,807,244 $14,518,742
Cash 36,598 186,330 247,347
Receivables:
Interest 374,238 519,792 271,513
Shares sold 1,637 799 26,805
Other assets 644 608 528
------------ ------------ ------------
Total Assets 29,826,324 43,514,773 15,064,935
------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased -- -- --
Distributions payable 57,181 82,947 8,410
Shares redeemed 12,824 62,163 --
Unrealized loss on swap agreements 34,917 60,032 8,199
Accrued advisory fees 13,397 19,525 3,341
Accrued shareholder servicing costs 1,744 2,321 874
Accrued expenses 11,211 16,880 1,955
------------ ------------ ------------
Total Liabilities 131,274 243,868 22,779
------------ ------------ ------------
Net Assets $29,695,050 $43,270,905 $15,042,156
============ ============ ============
Net Assets Consist of:
Capital paid in $27,205,915 $39,005,716 $14,021,166
Undistributed net investment income 8,255 22,726 13,045
Accumulated net realized gain (loss)
on investments. -- -- (45,280)
Net unrealized appreciation in value
of investments and swap agreements 2,480,880 4,242,463 1,053,225
------------ ------------ ------------
Total $29,695,050 $43,270,905 $15,042,156
============ ============ ============
Net Assets:
Class A $25,819,218 $41,584,744 $13,847,851
Class B $ 3,875,832 $ 1,686,161 $ 1,194,305
Shares outstanding (Note 2):
Class A 2,110,219 3,192,317 1,138,323
Class B 316,593 129,638 98,067
Net asset value and redemption price
per share -- Class A $12.24 $13.03 $12.17
====== ====== ======
Maximum offering price per share --
Class A (Net asset value/.9425)* $12.99 $13.82 $12.91
====== ====== ======
Net asset value and offering price
per share -- Class B (Note 2) $12.24 $13.01 $12.18
====== ====== ======
Statement of Assets and Liabilities
FIRST INVESTORS
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
------------------------------------------------------------
MISSOURI NEW JERSEY NORTH CAROLINA OHIO
- ----------------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $10,261,318 $63,824,044 $22,078,126 $24,726,153
============ ============ ============ ============
At value (Note 1A) $10,984,240 $69,729,848 $23,871,756 $27,186,119
Cash 142,218 113,250 174,145 78,133
Receivables:
Interest 174,719 1,195,759 263,024 168,848
Investment securities sold -- -- -- --
Shares sold 70 26,618 1,244 2,971
Other assets -- 277 -- 572
------------ ------------ ------------ ------------
Total Assets 11,301,247 71,065,752 24,310,169 27,436,643
------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased -- -- -- --
Distributions payable 16,222 151,251 39,509 20,635
Shares redeemed -- 297,252 54,083 22,171
Unrealized loss on swap agreements 14,294 83,178 27,435 37,163
Accrued advisory fees 2,526 35,285 8,740 9,849
Accrued shareholder servicing costs 511 3,186 1,246 1,360
Accrued expenses 2,066 21,562 1,311 9,165
------------ ------------ ------------ ------------
Total Liabilities 35,619 591,714 132,324 100,343
------------ ------------ ------------ ------------
Net Assets $11,265,628 $70,474,038 $24,177,845 $27,336,300
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $10,549,805 $64,638,172 $22,405,870 $24,909,841
Undistributed net investment income 7,195 13,240 5,780 11,585
Accumulated net realized loss on investments -- -- -- (7,929)
Net unrealized appreciation in value
of investments and swap agreements 708,628 5,822,626 1,766,195 2,422,803
------------ ------------ ------------ ------------
Total $11,265,628 $70,474,038 $24,177,845 $27,336,300
============ ============ ============ ============
Net Assets:
Class A $8,157,648 $63,407,439 $19,591,889 $23,032,297
Class B $3,107,980 $ 7,066,599 $ 4,585,956 $ 4,304,003
Shares outstanding (Note 2):
Class A 589,793 4,766,014 1,437,569 1,778,574
Class B 224,685 532,719 336,429 332,214
Net asset value and redemption price
per share--Class A $13.83 $13.30 $13.63 $12.95
====== ====== ====== ======
Maximum offering price per share --
Class A (Net asset value/.9425)* $14.67 $14.11 $14.46 $13.74
====== ====== ====== ======
Net asset value and offering price
per share--Class B (Note 2) $13.83 $13.27 $13.63 $12.96
====== ====== ====== ======
* On purchases of $100,000 or more, the sales charge is reduced.
See notes to financial statements
Statement of Assets and Liabilities
FIRST INVESTORS
December 31, 2003
- --------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
--------------------------------------------
OREGON PENNSYLVANIA VIRGINIA
- --------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $25,970,693 $43,228,243 $40,194,282
============ ============ ============
At value (Note 1A) $28,098,268 $48,000,278 $43,428,889
Cash 438,369 320,913 519,218
Receivables:
Interest 281,569 564,706 804,722
Investment securities sold -- 1,030,702 --
Shares sold 36,186 2,534 58,261
Other assets -- -- --
------------ ------------ ------------
Total Assets 28,854,392 49,919,133 44,811,090
------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased -- 1,024,662 --
Distributions payable 17,974 111,398 126,642
Shares redeemed 11,955 225 20,224
Unrealized loss on swap agreements 38,592 59,858 24,594
Accrued advisory fees 10,317 21,937 20,024
Accrued shareholder servicing costs 1,748 2,227 1,737
Accrued expenses 7,888 10,091 8,912
------------ ------------ ------------
Total Liabilities 88,474 1,230,398 202,133
------------ ------------ ------------
Net Assets $28,765,918 $48,688,735 $44,608,957
============ ============ ============
Net Assets Consist of:
Capital paid in $26,714,065 $43,941,215 $41,344,491
Undistributed net investment income 2,568 35,343 54,681
Accumulated net realized loss on investments (39,698) -- (228)
Net unrealized appreciation in value
of investments and swap agreements 2,088,983 4,712,177 3,210,013
------------ ------------ ------------
Total $28,765,918 $48,688,735 $44,608,957
============ ============ ============
Net Assets:
Class A $25,726,256 $45,154,756 $41,757,906
Class B $ 3,039,662 $ 3,533,979 $ 2,851,051
Shares outstanding (Note 2):
Class A 1,926,657 3,334,571 3,088,491
Class B 227,935 261,289 211,494
Net asset value and redemption price
per share--Class A $13.35 $13.54 $13.52
====== ====== ======
Maximum offering price per share --
Class A (Net asset value/.9425)* $14.16 $14.37 $14.34
====== ====== ======
Net asset value and offering price
per share--Class B (Note 2) $13.34 $13.53 $13.48
====== ====== ======
Statement of Operations
FIRST INVESTORS
Year Ended December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
INSURED
TAX-EXEMPT INTERMEDIATE INSURED INSURED
MONEY MARKET TAX EXEMPT TAX EXEMPT TAX EXEMPT II
- ----------------------------------------------------------------------------------------------------------------------
Investment Income
Interest income $204,955 $1,770,319 $45,696,138 $4,040,688
------------ ------------ ------------ ------------
Expenses (Notes 1 and 5):
Advisory fees 93,962 340,180 6,399,103 913,535
Distribution plan expenses -- Class A -- 113,856 2,419,977 188,137
Distribution plan expenses -- Class B 214 111,544 51,019 160,988
Shareholder servicing costs 30,018 39,004 585,727 71,145
Professional fees 28,039 23,915 147,374 35,067
Custodian fees 6,971 10,607 76,649 16,027
Reports to shareholders 6,825 5,700 81,347 10,441
Other expenses 42,220 55,413 258,636 74,927
------------ ------------ ------------ ------------
Total expenses 208,249 700,219 10,019,832 1,470,267
Less: Expenses waived or assumed (67,010) (131,275) (810,488) (430,344)
Custodian fees paid indirectly (112) (3,737) (24,197) (5,790)
------------ ------------ ------------ ------------
Net expenses 141,127 565,207 9,185,147 1,034,133
------------ ------------ ------------ ------------
Net investment income 63,828 1,205,112 36,510,991 3,006,555
------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss)
on Investments and Swap Agreements (Note 4):
Net realized gain (loss) on investments -- 453,509 6,557,587 567,556
Net unrealized appreciation (depreciation)
of investment and swap agreements -- 322,769 (3,669,638) 677,089
------------ ------------ ------------ ------------
Net gain on investments and swap agreements -- 776,278 2,887,949 1,244,645
------------ ------------ ------------ ------------
Net Increase in Net Assets Resulting
from Operations $ 63,828 $1,981,390 $39,398,940 $4,251,200
============ ============ ============ ============
See notes to financial statements
Statement of Operations
FIRST INVESTORS
Year Ended December 31, 2003
- -----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-------------------------------------------
NEW YORK
INSURED
TAX FREE ARIZONA CALIFORNIA COLORADO
- -----------------------------------------------------------------------------------------------------------------------
Investment Income
Interest income $9,686,192 $1,139,596 $1,352,575 $598,077
------------ ------------ ------------ ------------
Expenses (Notes 1 and 5):
Advisory fees 1,459,080 182,265 220,241 96,278
Distribution plan expenses -- Class A 463,281 54,272 65,303 27,926
Distribution plan expenses -- Class B 92,315 25,930 32,444 16,665
Shareholder servicing costs 118,715 11,771 13,814 8,677
Professional fees 45,255 11,073 23,807 9,836
Custodian fees 21,788 5,495 5,825 4,058
Reports to shareholders 17,921 2,920 2,768 2,025
Other expenses 66,863 16,656 13,579 12,358
------------ ------------ ------------ ------------
Total expenses 2,285,218 310,382 377,781 177,823
Less: Expenses waived or assumed (291,816) (105,160) (130,048) (86,656)
Custodian fees paid indirectly (16,237) (3,567) (3,223) (1,672)
------------ ------------ ------------ ------------
Net expenses 1,977,165 201,655 244,510 89,495
------------ ------------ ------------ ------------
Net investment income 7,709,027 937,941 1,108,065 508,582
------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss)
on Investments and Swap Agreements (Note 4):
Net realized gain (loss) on investments 1,592,997 152,366 58,308 (35,920)
Net unrealized appreciation (depreciation)
of investment and swap agreements (1,233,282) (10,549) 62,985 97,582
------------ ------------ ------------ ------------
Net gain on investments and swap agreements 359,715 141,817 121,293 61,662
------------ ------------ ------------ ------------
Net Increase in Net Assets Resulting
from Operations $8,068,742 $1,079,758 $1,229,358 $570,244
============ ============ ============ ============
Statement of Operations
FIRST INVESTORS
Year Ended December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
------------------------------------------------------------
CONNECTICUT FLORIDA GEORGIA MARYLAND
- ----------------------------------------------------------------------------------------------------------------------
Investment Income
Interest income $1,784,640 $1,841,170 $473,099 $1,562,455
------------ ------------ ------------ ------------
Expenses (Notes 1 and 5):
Advisory fees 279,502 294,472 76,309 256,829
Distribution plan expenses -- Class A 77,808 90,498 21,388 70,328
Distribution plan expenses -- Class B 61,437 30,639 16,194 61,128
Shareholder servicing costs 20,611 20,619 4,521 16,181
Professional fees 20,501 18,766 7,571 12,139
Custodian fees 7,334 7,241 2,812 6,931
Reports to shareholders 4,689 3,602 1,693 3,450
Other expenses 21,211 14,232 10,157 24,604
------------ ------------ ------------ ------------
Total expenses 493,093 480,069 140,645 451,590
Less: Expenses waived or assumed (127,302) (119,852) (65,963) (111,557)
Custodian fees paid indirectly (3,009) (3,587) (1,517) (3,119)
------------ ------------ ------------ ------------
Net expenses 362,782 356,630 73,165 336,914
------------ ------------ ------------ ------------
Net investment income 1,421,858 1,484,540 399,934 1,225,541
------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investment
and Swap Agreements (Note 4):
Net realized gain (loss) on investments 313,456 181,051 93,134 58,735
Net unrealized appreciation (depreciation)
of investments and swap agreements (266,655) (122,571) (535) 91,926
------------ ------------ ------------ ------------
Net gain on investments and swap agreements 46,801 58,480 92,599 150,661
------------ ------------ ------------ ------------
Net Increase in Net Assets Resulting
from Operations $1,468,659 $1,543,020 $492,533 $1,376,202
============ ============ ============ ============
See notes to financial statements
Statement of Operations
FIRST INVESTORS
Year Ended December 31, 2003
- -------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
---------------------------------------------
MASSACHUSETTS MICHIGAN MINNESOTA
- -------------------------------------------------------------------------------------------------------
Investment Income
Interest income $1,442,544 $2,202,290 $664,744
------------ ------------ ------------
Expenses (Notes 1 and 5):
Advisory fees 226,859 327,455 105,484
Distribution plan expenses -- Class A 65,285 105,049 32,502
Distribution plan expenses -- Class B 41,340 16,411 10,638
Shareholder servicing costs 19,518 25,279 9,191
Professional fees 14,804 24,774 13,660
Custodian fees 5,841 7,478 3,742
Reports to shareholders 3,534 4,398 2,423
Other expenses 12,634 21,949 12,600
------------ ------------ ------------
Total expenses 389,815 532,793 190,240
Less: Expenses waived or assumed (99,698) (109,152) (96,347)
Custodian fees paid indirectly (2,019) (1,426) (1,560)
------------ ------------ ------------
Net expenses 288,098 422,215 92,333
------------ ------------ ------------
Net investment income 1,154,446 1,780,075 572,411
------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investment
and Swap Agreements (Note 4):
Net realized gain (loss) on investments 391,788 179,754 (38,460)
Net unrealized appreciation (depreciation)
of investments and swap agreements (154,325) 45,495 124,888
------------ ------------ ------------
Net gain on investments and swap agreements 237,463 225,249 86,428
------------ ------------ ------------
Net Increase in Net Assets Resulting
from Operations $1,391,909 $2,005,324 $658,839
============ ============ ============
Statement of Operations
FIRST INVESTORS
Year Ended December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
------------------------------------------------------------
MISSOURI NEW JERSEY NORTH CAROLINA OHIO
- ----------------------------------------------------------------------------------------------------------------------
Investment Income
Interest income $461,026 $3,422,110 $1,103,098 $1,290,933
------------ ------------ ------------ ------------
Expenses (Notes 1 and 5):
Advisory fees 76,096 528,416 176,722 202,931
Distribution plan expenses -- Class A 18,639 158,608 47,949 58,603
Distribution plan expenses -- Class B 26,906 70,123 43,834 36,162
Shareholder servicing costs 6,074 38,003 13,683 18,029
Professional fees 11,585 28,237 21,844 14,252
Custodian fees 3,314 10,633 5,248 5,654
Reports to shareholders 2,102 5,965 2,842 4,766
Other expenses 11,629 26,760 15,670 12,785
------------ ------------ ------------ ------------
Total expenses 156,345 866,745 327,792 353,182
Less: Expenses waived or assumed (74,125) (140,911) (115,471) (122,396)
Custodian fees paid indirectly (1,201) (2,457) (2,767) (787)
------------ ------------ ------------ ------------
Net expenses 81,019 723,377 209,554 229,999
------------ ------------ ------------ ------------
Net investment income 380,007 2,698,733 893,544 1,060,934
------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investments
and Swap Agreements (Note 4):
Net realized gain (loss) on investments 15,735 610,409 186,424 (8,285)
Net unrealized appreciation (depreciation)
of investments and swap agreements 120,432 (420,147) 65,932 150,260
------------ ------------ ------------ ------------
Net gain on investments and swap agreements 136,167 190,262 252,356 141,975
------------ ------------ ------------ ------------
Net Increase in Net Assets Resulting
from Operations $516,174 $2,888,995 $1,145,900 $1,202,909
============ ============ ============ ============
See notes to financial statements
Statement of Operations
FIRST INVESTORS
Year Ended December 31, 2003
- -----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
----------------------------------------------
OREGON PENNSYLVANIA VIRGINIA
- -----------------------------------------------------------------------------------------------------------------------
Investment Income
Interest income $1,281,398 $2,343,665 $2,180,193
------------ ------------ ------------
Expenses (Notes 1 and 5):
Advisory fees 204,880 361,221 329,205
Distribution plan expenses -- Class A 60,338 112,265 103,101
Distribution plan expenses -- Class B 31,821 32,566 26,538
Shareholder servicing costs 20,306 27,327 21,338
Professional fees 15,031 15,760 16,617
Custodian fees 4,953 7,811 7,376
Reports to shareholders 3,620 4,379 4,413
Other expenses 17,278 18,206 20,209
------------ ------------ ------------
Total expenses 358,227 579,535 528,797
Less: Expenses waived or assumed (126,559) (120,407) (109,735)
Custodian fees paid indirectly (2,978) (1,853) (3,280)
------------ ------------ ------------
Net expenses 228,690 457,275 415,782
------------ ------------ ------------
Net investment income 1,052,708 1,886,390 1,764,411
------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investments
and Swap Agreements (Note 4):
Net realized gain (loss) on investments (15,454) 180,082 270,011
Net unrealized appreciation (depreciation)
of investments and swap agreements 182,459 (144,725) (53,343)
------------ ------------ ------------
Net gain on investments and swap agreements 167,005 35,357 216,668
------------ ------------ ------------
Net Increase in Net Assets Resulting
from Operations $1,219,713 $1,921,747 $1,981,079
============ ============ ============
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT INSURED INTERMEDIATE
MONEY MARKET TAX EXEMPT
---------------------------- ----------------------------
Year Ended December 31 2003 2002 2003 2002
- ----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 63,828 $ 159,052 $ 1,205,112 $ 683,744
Net realized gain on investments -- -- 453,509 604,163
Net unrealized appreciation (depreciation)
of investments and swap agreements -- -- 322,769 1,138,732
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations 63,828 159,052 1,981,390 2,426,639
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income -- Class A (63,828) (158,944) (1,024,077) (571,460)
Net investment income -- Class B -- (108) (170,089) (112,140)
Net realized gains -- Class A -- -- (371,439) (463,529)
Net realized gains -- Class B -- -- (82,394) (124,199)
------------ ------------ ------------ ------------
Total distributions (63,828) (159,052) (1,647,999) (1,271,328)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 17,639,056 18,978,559 35,524,204 19,644,815
Reinvestment of distributions 62,440 157,242 1,089,899 833,329
Cost of shares redeemed (19,208,272) (20,912,136) (9,333,508) (3,145,703)
------------ ------------ ------------ ------------
(1,506,776) (1,776,335) 27,280,595 17,332,441
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 37,069 276,927 6,039,065 5,217,690
Reinvestment of distributions -- 97 190,967 175,566
Cost of shares redeemed (37,296) (242,635) (1,528,224) (386,537)
------------ ------------ ------------ ------------
(227) 34,389 4,701,808 5,006,719
------------ ------------ ------------ ------------
Net increase (decrease) from share
transactions (1,507,003) (1,741,946) 31,982,403 22,339,160
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (1,507,003) (1,741,946) 32,315,794 23,494,471
Net Assets
Beginning of year 18,473,101 20,215,047 37,466,781 13,972,310
------------ ------------ ------------ ------------
End of year+ $16,966,098 $18,473,101 $69,782,575 $37,466,781
============ ============ ============ ============
+Includes undistributed net investment
income of $ -- $ -- $ 12,605 $ 1,659
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 17,639,056 18,978,559 5,466,490 3,070,472
Issued for distributions reinvested 62,440 157,242 167,657 130,196
Redeemed (19,208,272) (20,912,136) (1,436,243) (493,509)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares
outstanding (1,506,776) (1,776,335) 4,197,904 2,707,159
============ ============ ============ ============
Class B:
Sold 37,069 276,927 927,955 814,473
Issued for distributions reinvested -- 97 29,327 27,375
Redeemed (37,296) (242,635) (234,656) (61,296)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares
outstanding (227) 34,389 722,626 780,552
============ ============ ============ ============
See notes to financial statements
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------------------------------------------------------------------------
INSURED INSURED
TAX EXEMPT TAX EXEMPT II
---------------------------- ----------------------------
Year Ended December 31 2003 2002 2003 2002
- ----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 36,510,991 $ 38,970,201 $ 3,006,555 $ 1,906,195
Net realized gain on investments 6,557,587 21,016,758 567,556 1,264,999
Net unrealized appreciation (depreciation)
of investments and swap agreements (3,669,638) 28,203,587 677,089 2,727,714
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations 39,398,940 88,190,546 4,251,200 5,898,908
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income -- Class A (36,086,059) (39,291,166) (2,578,652) (1,687,917)
Net investment income -- Class B (170,729) (198,815) (430,820) (214,770)
Net realized gains -- Class A (6,673,491) (20,891,103) (466,638) (1,044,456)
Net realized gains -- Class B (34,695) (126,755) (101,178) (206,576)
------------ ------------ ------------ ------------
Total distributions (42,964,974) (60,507,839) (3,577,288) (3,153,719)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 10,457,029 14,106,539 26,796,706 39,358,290
Reinvestment of distributions 33,647,224 48,245,291 2,230,827 2,017,160
Cost of shares redeemed (74,035,870) (75,809,390) (14,026,089) (8,908,598)
------------ ------------ ------------ ------------
(29,931,617) (13,457,560) 15,001,444 32,466,852
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 110,563 278,885 8,014,916 9,579,331
Reinvestment of distributions 160,282 264,429 397,359 336,343
Cost of shares redeemed (1,228,694) (412,474) (3,895,784) (498,339)
------------ ------------ ------------ ------------
(957,849) 130,840 4,516,491 9,417,335
------------ ------------ ------------ ------------
Net increase (decrease) from share
transactions (30,889,466) (13,326,720) 19,517,935 41,884,187
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (34,455,500) 14,355,987 20,191,847 44,629,376
Net Assets
Beginning of year 921,315,852 906,959,865 77,499,742 32,870,366
------------ ------------ ------------ ------------
End of year+ $886,860,352 $921,315,852 $97,691,589 $77,499,742
============ ============ ============ ============
+Includes undistributed net investment
income of $ 316,606 $ 62,403 $ 4,101 $ 7,018
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 998,704 1,345,899 1,741,821 2,613,808
Issued for distributions reinvested 3,221,367 4,611,858 145,105 133,156
Redeemed (7,089,791) (7,253,694) (915,872) (590,645)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares
outstanding (2,869,720) (1,295,937) 971,054 2,156,319
============ ============ ============ ============
Class B:
Sold 10,516 26,997 521,653 637,624
Issued for distributions reinvested 15,365 25,302 25,861 22,163
Redeemed (117,470) (39,514) (255,276) (33,504)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares
outstanding (91,589) 12,785 292,238 626,283
============ ============ ============ ============
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED
TAX FREE FUND
----------------------------
NEW YORK INSURED TAX FREE ARIZONA
---------------------------- ----------------------------
Year Ended December 31 2003 2002 2003 2002
- ----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 7,709,027 $ 7,712,610 $ 937,941 $ 827,774
Net realized gain (loss) on investments 1,592,997 5,804,131 152,366 228,591
Net unrealized appreciation (depreciation)
of investments and swap agreements (1,233,282) 5,139,641 (10,549) 868,589
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 8,068,742 18,656,382 1,079,758 1,924,954
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income -- Class A (7,276,283) (7,352,770) (861,399) (761,856)
Net investment income -- Class B (296,001) (302,928) (82,595) (59,649)
Net realized gains -- Class A (1,523,133) (5,057,151) (133,299) (177,997)
Net realized gains -- Class B (70,723) (277,375) (19,163) (18,639)
------------ ------------ ------------ ------------
Total distributions (9,166,140) (12,990,224) (1,096,456) (1,018,141)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 12,857,413 18,282,678 4,053,465 3,902,340
Reinvestment of distributions 6,427,003 9,454,350 601,481 522,594
Cost of shares redeemed (20,297,927) (18,135,155) (3,077,363) (1,759,394)
------------ ------------ ------------ ------------
(1,013,511) 9,601,873 1,577,583 2,665,540
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 1,678,552 3,413,404 1,129,845 840,568
Reinvestment of distributions 297,352 488,082 59,914 50,519
Cost of shares redeemed (3,622,784) (826,546) (179,751) (341,139)
------------ ------------ ------------ ------------
(1,646,880) 3,074,940 1,010,008 549,948
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions (2,660,391) 12,676,813 2,587,591 3,215,488
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (3,757,789) 18,342,971 2,570,893 4,122,301
Net Assets
Beginning of year 197,285,340 178,942,369 22,259,143 18,136,842
------------ ------------ ------------ ------------
End of year+ $193,527,551 $197,285,340 $24,830,036 $22,259,143
============ ============ ============ ============
+Includes undistributed net investment income of $ 244,525 $ 107,782 $ 5,663 $ 11,716
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 862,828 1,224,238 288,149 284,312
Issued for distributions reinvested 431,925 633,851 42,996 37,769
Redeemed (1,369,282) (1,217,311) (220,856) (128,585)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding (74,529) 640,778 110,289 193,496
============ ============ ============ ============
Class B:
Sold 112,629 229,807 80,600 60,936
Issued for distributions reinvested 20,004 32,725 4,284 3,647
Redeemed (244,350) (54,936) (12,892) (24,855)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (111,717) 207,596 71,992 39,728
============ ============ ============ ============
See notes to financial statements
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
------------------------------------------------------------
CALIFORNIA COLORADO
---------------------------- ----------------------------
Year Ended December 31 2003 2002 2003 2002
- ----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 1,108,065 $ 859,680 $ 508,582 $ 423,759
Net realized gain (loss) on investments 58,308 247,435 (35,920) 76,093
Net unrealized appreciation (depreciation)
of investments and swap agreements 62,985 965,543 97,582 500,224
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 1,229,358 2,072,658 570,244 1,000,076
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income -- Class A (1,002,509) (804,268) (449,173) (387,758)
Net investment income -- Class B (99,414) (51,043) (54,060) (34,700)
Net realized gains -- Class A (53,523) (205,781) -- (59,552)
Net realized gains -- Class B (6,971) (22,405) -- (7,937)
------------ ------------ ------------ ------------
Total distributions (1,162,417) (1,083,497) (503,233) (489,947)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 7,226,792 6,800,935 3,709,395 3,376,587
Reinvestment of distributions 592,600 591,012 284,456 270,252
Cost of shares redeemed (4,142,221) (2,527,409) (2,128,678) (1,351,915)
------------ ------------ ------------ ------------
3,677,171 4,864,538 1,865,173 2,294,924
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 1,123,616 1,624,095 838,991 1,012,509
Reinvestment of distributions 43,940 37,096 37,440 37,378
Cost of shares redeemed (187,125) (246,242) (539,623) (176,741)
------------ ------------ ------------ ------------
980,431 1,414,949 336,808 873,146
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions 4,657,602 6,279,487 2,201,981 3,168,070
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 4,724,543 7,268,648 2,268,992 3,678,199
Net Assets
Beginning of year 25,763,515 18,494,867 11,364,577 7,686,378
------------ ------------ ------------ ------------
End of year+ $30,488,058 $25,763,515 $13,633,569 $11,364,577
============ ============ ============ ============
+Includes undistributed net investment income of $ 10,511 $ 4,369 $ 9,055 $ 3,706
============ ============ ============ ============
*Shares Issued sand Redeemed
Class A:
Sold 577,243 551,238 266,343 251,474
Issued for distributions reinvested 47,529 47,977 20,637 19,935
Redeemed (331,438) (207,380) (154,871) (99,741)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding 293,334 391,835 132,109 171,668
============ ============ ============ ============
Class B:
Sold 89,750 131,503 60,980 75,318
Issued for distributions reinvested 3,522 3,002 2,716 2,753
Redeemed (14,994) (20,452) (40,073) (12,873)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding 78,278 114,053 23,623 65,198
============ ============ ============ ============
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
------------------------------------------------------------
CONNECTICUT FLORIDA
---------------------------- ----------------------------
Year Ended December 31 2003 2002 2003 2002
- ----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 1,421,858 $ 1,247,070 $ 1,484,540 $ 1,344,786
Net realized gain on investments 313,456 376,349 181,051 450,817
Net unrealized appreciation (depreciation)
of investments and swap agreements (266,655) 1,143,070 (122,571) 1,465,562
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations 1,468,659 2,766,489 1,543,020 3,261,165
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income -- Class A (1,220,789) (1,108,108) (1,376,939) (1,273,775)
Net investment income -- Class B (194,224) (166,043) (92,085) (57,559)
Net realized gains -- Class A (263,290) (298,193) (166,162) (422,070)
Net realized gains -- Class B (50,363) (60,519) (14,925) (28,830)
------------ ------------ ------------ ------------
Total distributions (1,728,666) (1,632,863) (1,650,111) (1,782,234)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 5,501,680 8,267,518 6,638,222 6,538,967
Reinvestment of distributions 1,121,678 1,060,492 927,590 1,039,475
Cost of shares redeemed (5,039,029) (2,984,879) (4,573,440) (3,453,318)
------------ ------------ ------------ ------------
1,584,329 6,343,131 2,992,372 4,125,124
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 802,524 2,316,714 1,466,260 909,926
Reinvestment of distributions 167,320 161,599 53,553 55,684
Cost of shares redeemed (1,014,091) (283,076) (503,070) (37,834)
------------ ------------ ------------ ------------
(44,247) 2,195,237 1,016,743 927,776
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions 1,540,082 8,538,368 4,009,115 5,052,900
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 1,280,075 9,671,994 3,902,024 6,531,831
Net Assets
Beginning of year 35,912,783 26,240,789 36,877,849 30,346,018
------------ ------------ ------------ ------------
End of year+ $37,192,858 $35,912,783 $40,779,873 $36,877,849
============ ============ ============ ============
+Includes undistributed net investment income of $ 12,452 $ 5,607 $ 28,968 $ 13,452
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 404,653 609,202 478,243 476,539
Issued for distributions reinvested 82,582 78,516 67,067 75,745
Redeemed (370,866) (221,790) (331,029) (252,288)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares
outstanding 116,369 465,928 214,281 299,996
============ ============ ============ ============
Class B:
Sold 58,685 170,813 105,377 66,089
Issued for distributions reinvested 12,331 11,959 3,869 4,050
Redeemed (74,539) (20,942) (36,599) (2,739)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares
outstanding (3,523) 161,830 72,647 67,400
============ ============ ============ ============
See notes to financial statements
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
------------------------------------------------------------
GEORGIA MARYLAND
---------------------------- ----------------------------
Year Ended December 31 2003 2002 2003 2002
- ----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 399,934 $ 368,785 $ 1,225,541 $ 1,088,931
Net realized gain on investments 93,134 131,039 58,735 201,474
Net unrealized appreciation (depreciation)
of investments and swap agreements (535) 386,269 91,926 1,291,809
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations 492,533 886,093 1,376,202 2,582,214
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income -- Class A (341,869) (327,720) (1,043,499) (912,310)
Net investment income -- Class B (52,193) (39,470) (179,960) (167,706)
Net realized gains -- Class A (78,353) (98,015) (47,985) (68,751)
Net realized gains -- Class B (12,793) (18,087) (10,743) (14,982)
------------ ------------ ------------ ------------
Total distributions (485,208) (483,292) (1,282,187) (1,163,749)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 1,866,270 864,645 3,235,918 10,709,400
Reinvestment of distributions 329,385 340,377 573,720 587,940
Cost of shares redeemed (898,376) (672,078) (5,145,095) (1,997,872)
------------ ------------ ------------ ------------
1,297,279 532,944 (1,335,457) 9,299,468
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 346,488 877,924 1,071,127 1,614,435
Reinvestment of distributions 41,336 43,540 133,608 127,141
Cost of shares redeemed (350,607) (160,693) (1,347,477) (339,689)
------------ ------------ ------------ ------------
37,217 760,771 (142,742) 1,401,887
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions 1,334,496 1,293,715 (1,478,199) 10,701,355
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 1,341,821 1,696,516 (1,384,184) 12,119,820
Net Assets
Beginning of year 9,855,239 8,158,723 34,351,786 22,231,966
------------ ------------ ------------ ------------
End of year+ $11,197,060 $9,855,239 $32,967,602 $34,351,786
============ ============ ============ ============
+Includes undistributed net investment income of $ 7,795 $ 1,923 $ 15,483 $ 13,401
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 134,900 62,433 228,325 771,193
Issued for distributions reinvested 23,733 24,815 40,522 42,298
Redeemed (64,079) (49,402) (368,412) (144,071)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares
outstanding 94,554 37,846 (99,565) 669,420
============ ============ ============ ============
Class B:
Sold 24,966 63,744 75,779 116,422
Issued for distributions reinvested 2,981 3,174 9,431 9,145
Redeemed (25,611) (11,637) (95,528) (24,827)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares
outstanding 2,336 55,281 (10,318) 100,740
============ ============ ============ ============
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
------------------------------------------------------------
MASSACHUSETTS MICHIGAN
---------------------------- ----------------------------
Year Ended December 31 2003 2002 2003 2002
- ----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 1,154,446 $ 1,171,060 $ 1,780,075 $ 1,831,794
Net realized gain (loss) on investments 391,788 341,290 179,754 886,009
Net unrealized appreciation (depreciation)
of investments and swap agreements (154,325) 1,211,861 45,495 1,292,989
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 1,391,909 2,724,211 2,005,324 4,010,792
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income -- Class A (1,020,134) (1,058,097) (1,743,001) (1,735,045)
Net investment income -- Class B (129,082) (113,731) (56,187) (56,208)
Net realized gains -- Class A (343,315) (294,237) (173,185) (849,967)
Net realized gains -- Class B (51,586) (44,120) (7,021) (35,722)
------------ ------------ ------------ ------------
Total distributions (1,544,117) (1,510,185) (1,979,394) (2,676,942)
------------ ------------ ------------ ------------
Share Transactions*
Class A:
Proceeds from shares sold 2,226,047 2,472,698 3,784,383 4,923,454
Reinvestment of distributions 1,150,977 1,111,132 1,241,976 1,747,620
Cost of shares redeemed (3,112,985) (3,598,118) (5,458,503) (4,764,061)
------------ ------------ ------------ ------------
264,039 (14,288) (432,144) 1,907,013
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 1,268,406 1,232,296 239,462 372,969
Reinvestment of distributions 156,454 136,514 51,793 69,067
Cost of shares redeemed (1,383,315) (423,745) (363,439) (178,474)
------------ ------------ ------------ ------------
41,545 945,065 (72,184) 263,562
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions 305,584 930,777 (504,328) 2,170,575
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 153,376 2,144,803 (478,398) 3,504,425
Net Assets
Beginning of year 29,541,674 27,396,871 43,749,303 40,244,878
------------ ------------ ------------ ------------
End of year+ $29,695,050 $29,541,674 $43,270,905 $43,749,303
============ ============ ============ ============
+Includes undistributed net investment income of $ 8,255 $ 3,025 $ 22,726 $ 41,839
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 180,730 201,907 290,279 379,099
Issued for distributions reinvested 93,549 91,121 95,237 134,292
Redeemed (252,756) (297,357) (416,854) (363,438)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding 21,523 (4,329) (31,338) 149,953
============ ============ ============ ============
Class B:
Sold 102,998 101,138 18,396 28,635
Issued for distributions reinvested 12,714 11,178 3,978 5,312
Redeemed (112,541) (34,474) (27,835) (13,655)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding 3,171 77,842 (5,461) 20,292
============ ============ ============ ============
See notes to financial statements
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
------------------------------------------------------------
MINNESOTA MISSOURI
---------------------------- ----------------------------
Year Ended December 31 2003 2002 2003 2002
- ----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 572,411 $ 509,403 $ 380,007 $ 284,357
Net realized gain (loss) on investments (38,460) 51,819 15,735 70,172
Net unrealized appreciation (depreciation)
of investments and swap agreements 124,888 486,434 120,432 380,977
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 658,839 1,047,656 516,174 735,506
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income -- Class A (527,996) (494,136) (289,895) (236,678)
Net investment income -- Class B (34,647) (15,590) (83,235) (49,620)
Net realized gains -- Class A -- -- (7,178) --
Net realized gains -- Class B -- -- (2,734) --
------------ ------------ ------------ ------------
Total distributions (562,643) (509,726) (383,042) (286,298)
------------ ------------ ------------ ------------
Share Transactions*
Class A:
Proceeds from shares sold 1,826,248 1,749,762 1,908,687 2,138,978
Reinvestment of distributions 435,868 406,466 156,448 122,440
Cost of shares redeemed (763,021) (740,273) (661,363) (547,038)
------------ ------------ ------------ ------------
1,499,095 1,415,955 1,403,772 1,714,380
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 483,097 560,200 974,860 1,312,609
Reinvestment of distributions 26,281 11,571 65,066 36,936
Cost of shares redeemed (142,542) -- (63,210) (65,115)
------------ ------------ ------------ ------------
366,836 571,771 976,716 1,284,430
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions 1,865,931 1,987,726 2,380,488 2,998,810
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 1,962,127 2,525,656 2,513,620 3,448,018
Net Assets
Beginning of year 13,080,029 10,554,373 8,752,008 5,303,990
------------ ------------ ------------ ------------
End of year+ $15,042,156 $13,080,029 $11,265,628 $8,752,008
============ ============ ============ ============
+Includes undistributed net investment income of $ 13,045 $ 3,277 $ 7,195 $ 318
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 150,655 147,601 139,259 161,528
Issued for distributions reinvested 35,994 34,336 11,401 9,192
Redeemed (63,499) (62,644) (48,312) (41,256)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding 123,150 119,293 102,348 129,464
============ ============ ============ ============
Class B:
Sold 39,870 46,651 70,976 99,611
Issued for distributions reinvested 2,169 973 4,741 2,765
Redeemed (11,887) -- (4,623) (4,944)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding 30,152 47,624 71,094 97,432
============ ============ ============ ============
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
------------------------------------------------------------
NEW JERSEY NORTH CAROLINA
---------------------------- ----------------------------
Year Ended December 31 2003 2002 2003 2002
- ----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 2,698,733 $ 2,766,264 $ 893,544 $ 754,128
Net realized gain (loss) on investments 610,409 1,386,326 186,424 76,344
Net unrealized appreciation (depreciation)
of investments and swap agreements (420,147) 2,207,843 65,932 1,053,757
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 2,888,995 6,360,433 1,145,900 1,884,229
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income -- Class A (2,489,572) (2,628,802) (755,329) (667,439)
Net investment income -- Class B (221,919) (190,517) (141,646) (82,852)
Net realized gains -- Class A (549,243) (1,262,352) (119,281) --
Net realized gains -- Class B (61,244) (119,783) (27,909) --
------------ ------------ ------------ ------------
Total distributions (3,321,978) (4,201,454) (1,044,165) (750,291)
------------ ------------ ------------ ------------
Share Transactions*
Class A:
Proceeds from shares sold 6,708,062 8,566,598 3,454,585 5,154,214
Reinvestment of distributions 2,106,255 2,812,328 645,667 485,130
Cost of shares redeemed (10,151,256) (8,564,519) (3,075,075) (1,467,437)
------------ ------------ ------------ ------------
(1,336,939) 2,814,407 1,025,177 4,171,907
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 1,761,616 1,670,702 1,249,786 1,744,496
Reinvestment of distributions 215,404 248,494 138,567 63,969
Cost of shares redeemed (1,034,002) (618,837) (566,418) (41,162)
------------ ------------ ------------ ------------
943,018 1,300,359 821,935 1,767,303
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions (393,921) 4,114,766 1,847,112 5,939,210
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (826,904) 6,273,745 1,948,847 7,073,148
Net Assets
Beginning of year 71,300,942 65,027,197 22,228,998 15,155,850
------------ ------------ ------------ ------------
End of year+ $70,474,038 $71,300,942 $24,177,845 $22,228,998
============ ============ ============ ============
+Includes undistributed net investment income of $ 13,240 $ 25,998 $ 5,780 $ 9,211
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 501,596 641,286 254,338 392,201
Issued for distributions reinvested 157,813 210,525 47,378 36,558
Redeemed (759,893) (640,321) (225,785) (109,391)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding (100,484) 211,490 75,931 319,368
============ ============ ============ ============
Class B:
Sold 131,962 125,626 91,663 130,594
Issued for distributions reinvested 16,180 18,654 10,165 4,810
Redeemed (77,848) (45,944) (41,544) (3,111)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding 70,294 98,336 60,284 132,293
============ ============ ============ ============
See notes to financial statements
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
------------------------------------------------------------
OHIO OREGON
---------------------------- ----------------------------
Year Ended December 31 2003 2002 2003 2002
- ----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 1,060,934 $ 956,709 $ 1,052,708 $ 892,719
Net realized gain (loss) on investments (8,285) 370,990 (15,454) 134,883
Net unrealized appreciation (depreciation)
of investments and swap agreements 150,260 1,013,482 182,459 1,015,764
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 1,202,909 2,341,181 1,219,713 2,043,366
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income -- Class A (937,879) (888,092) (948,033) (827,447)
Net investment income -- Class B (117,299) (62,987) (102,136) (76,197)
Net realized gains -- Class A -- (332,660) -- --
Net realized gains -- Class B -- (37,974) -- --
------------ ------------ ------------ ------------
Total distributions (1,055,178) (1,321,713) (1,050,169) (903,644)
------------ ------------ ------------ ------------
Share Transactions*
Class A:
Proceeds from shares sold 3,743,644 2,816,788 5,706,209 5,539,804
Reinvestment of distributions 671,710 928,997 744,139 655,346
Cost of shares redeemed (4,245,078) (1,944,386) (3,463,861) (1,989,723)
------------ ------------ ------------ ------------
170,276 1,801,399 2,986,487 4,205,427
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 1,858,660 1,116,682 876,326 1,581,506
Reinvestment of distributions 91,475 79,350 91,159 70,609
Cost of shares redeemed (277,169) (111,590) (1,090,750) (189,357)
------------ ------------ ------------ ------------
1,672,966 1,084,442 (123,265) 1,462,758
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions 1,843,242 2,885,841 2,863,222 5,668,185
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 1,990,973 3,905,309 3,032,766 6,807,907
Net Assets
Beginning of year 25,345,327 21,440,018 25,733,152 18,925,245
------------ ------------ ------------ ------------
End of year+ $27,336,300 $25,345,327 $28,765,918 $25,733,152
============ ============ ============ ============
+Includes undistributed net investment income of $ 11,585 $ 5,829 $ 2,568 $ 29
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 289,942 220,345 430,607 424,769
Issued for distributions reinvested 52,123 72,686 55,996 50,442
Redeemed (332,753) (151,806) (261,724) (153,336)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding 9,312 141,225 224,879 321,875
============ ============ ============ ============
Class B:
Sold 145,068 86,682 65,950 120,789
Issued for distributions reinvested 7,096 6,198 6,867 5,436
Redeemed (21,621) (8,707) (82,901) (14,404)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding 130,543 84,173 (10,084) 111,821
============ ============ ============ ============
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
------------------------------------------------------------
PENNSYLVANIA VIRGINIA
---------------------------- ----------------------------
Year Ended December 31 2003 2002 2003 2002
- ----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 1,886,390 $ 1,851,894 $ 1,764,411 $ 1,535,587
Net realized gain on investments 180,082 501,594 270,011 260,150
Net unrealized appreciation (depreciation)
of investments and swap agreements (144,725) 2,264,128 (53,343) 1,795,007
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 1,921,747 4,617,616 1,981,079 3,590,744
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income-Class A (1,769,149) (1,736,394) (1,644,491) (1,455,054)
Net investment income-Class B (103,211) (94,951) (87,217) (58,555)
Net realized gains-Class A (167,287) (414,823) (253,174) (223,991)
Net realized gains-Class B (13,107) (29,964) (17,336) (13,112)
------------ ------------ ------------ ------------
Total distributions (2,052,754) (2,276,132) (2,002,218) (1,750,712)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 4,337,932 6,142,481 4,298,852 9,201,782
Reinvestment of distributions 1,187,579 1,372,287 968,177 828,621
Cost of shares redeemed (5,360,984) (4,250,145) (3,924,861) (3,935,591)
------------ ------------ ------------ ------------
164,527 3,264,623 1,342,168 6,094,812
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 717,677 840,555 632,395 1,066,567
Reinvestment of distributions 73,763 84,125 79,094 59,326
Cost of shares redeemed (496,640) (382,030) (217,664) (311,195)
------------ ------------ ------------ ------------
294,800 542,650 493,825 814,698
------------ ------------ ------------ ------------
Net increase from share transactions 459,327 3,807,273 1,835,993 6,909,510
------------ ------------ ------------ ------------
Net increase in net assets 328,320 6,148,757 1,814,854 8,749,542
Net Assets
Beginning of year 48,360,415 42,211,658 42,794,103 34,044,561
------------ ------------ ------------ ------------
End of year+ $48,688,735 $48,360,415 $44,608,957 $42,794,103
============ ============ ============ ============
+Includes undistributed net investment income of $ 35,343 $ 21,313 $ 54,681 $ 21,978
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 318,712 461,283 318,211 690,943
Issued for distributions reinvested 87,678 102,353 71,552 62,035
Redeemed (396,237) (318,503) (290,347) (296,954)
------------ ------------ ------------ ------------
Net increase in Class A shares outstanding 10,153 245,133 99,416 456,024
============ ============ ============ ============
Class B:
Sold 53,087 62,763 46,689 80,229
Issued for distributions reinvested 5,453 6,283 5,861 4,452
Redeemed (37,040) (28,501) (16,277) (23,567)
------------ ------------ ------------ ------------
Net increase in Class B shares outstanding 21,500 40,545 36,273 61,114
============ ============ ============ ============
See notes to financial statements
Notes to Financial Statements
December 31, 2003
1. Significant Accounting Policies--First Investors Tax-Exempt Money
Market Fund, Inc. ("Tax-Exempt Money Market"), First Investors Insured
Intermediate Tax Exempt Fund ("Insured Intermediate"), a series of First
Investors Series Fund ("Series Fund"), First Investors Insured Tax
Exempt Fund, Inc. ("Insured Tax Exempt"), First Investors Insured Tax
Exempt Fund II ("Insured Tax Exempt II"), a series of Executive
Investors Trust, First Investors New York Insured Tax Free Fund, Inc.
("New York Insured") 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"), (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 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 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 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 and Multi-State Insured 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 under 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 prices provided by a pricing service approved by the
applicable Fund's Board of Directors/Trustees. The pricing service
considers security type, rating, market condition and yield data, as well
as market quotations and prices provided by market makers. The swap
agreements held by the Funds 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 Fund's Board of Directors/Trustees. "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.
At December 31, 2003, capital loss carryovers were as follows:
Year Capital Loss Carryovers Expire
------------------------------------------------------
Fund Total 2007 2008 2011
- ---- ------------ ------------ ------------ ------------
Colorado $35,920 $ -- $ -- $35,920
Minnesota 45,280 6,201 619 38,460
Ohio 8,285 -- -- 8,285
Oregon 39,698 1,814 -- 37,884
Notes to Financial Statements (continued)
December 31, 2003
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, income, realized and unrealized gains and losses of
Multi-State Insured 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, 2003, The Bank of New York,
custodian for the Funds, has provided credits in the amount of $90,095
against custodian charges based on the uninvested cash balances of the
Funds.
F. Swap Agreements--The Funds, other than the Tax-Exempt Money Market
Fund, may invest in interest rate swaps for the purpose of managing
their exposure to interest rate risk. 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
Statement of Operations. Gains or losses are realized upon early
termination of the swap agreements. Risks may exceed the amounts shown
in the Statement 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, 2003 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.
2. Capital--At December 31, 2003, paid-in capital of the Tax-Exempt
Money Market Fund amounted to $16,966,098. The Fund offers two classes
of shares, Class A and B. Both classes are sold without an initial sales
charge. However, Class B shares, which 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, 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 sells two classes of shares, Class A and Class B.
Class A shares are sold with an initial sales charge of up to 5.75%
(6.25% prior to 6/17/2002) of the amount invested. 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. Class A and Class B shares are subject to
distribution plans and have different distribution fees as described in
Note 5. 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 to the total net assets of both classes. 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 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 has designated 500,000,000 shares
as Class A and 500,000,000 shares as Class B. Executive Investors Trust,
Multi-State Insured 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.
Notes to Financial Statements (continued)
December 31, 2003
4. Security Transactions--For the year ended December 31, 2003,
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 $ 76,050,552 $ 41,899,655
Insured Tax Exempt 219,440,740 258,497,686
Insured Tax Exempt II 121,520,660 103,990,253
New York Insured 40,154,850 54,865,839
Arizona 11,657,457 10,104,868
California 27,016,687 22,742,809
Colorado 7,327,390 5,625,325
Connecticut 10,406,172 9,082,483
Florida 16,118,228 13,791,468
Georgia 2,817,829 1,970,616
Maryland 8,904,949 8,995,895
Massachusetts 6,216,885 7,352,788
Michigan 12,519,794 13,048,524
Minnesota 5,698,587 4,378,978
Missouri 4,530,150 2,215,900
New Jersey 23,512,372 24,869,467
North Carolina 5,306,537 4,965,094
Ohio 8,773,476 8,357,156
Oregon 3,293,421 1,163,117
Pennsylvania 5,794,432 6,573,693
Virginia 7,343,693 8,321,127
At December 31, 2003, 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 $ 68,292,256 $ 1,816,032 $ -- $ 1,816,032
Insured Tax Exempt 769,647,465 105,543,013 6,848 105,536,165
Insured Tax Exempt II 93,807,212 4,650,129 -- 4,650,129
New York Insured 175,514,400 15,635,841 -- 15,635,841
Arizona 22,676,975 1,785,643 -- 1,785,643
California 27,556,997 2,557,635 -- 2,557,635
Colorado 12,380,994 955,860 -- 955,860
Connecticut 34,115,649 2,321,842 -- 2,321,842
Florida 36,689,997 3,097,019 -- 3,097,019
Georgia 10,112,594 874,936 1,780 873,156
Maryland 31,187,162 2,466,757 -- 2,466,757
Massachusetts 26,897,410 2,515,797 -- 2,515,797
Michigan 38,504,749 4,302,495 -- 4,302,495
Minnesota 13,457,318 1,061,424 -- 1,061,424
Missouri 10,261,318 722,922 -- 722,922
New Jersey 63,824,044 5,905,804 -- 5,905,804
North Carolina 22,078,126 1,793,630 -- 1,793,630
Ohio 24,726,153 2,459,966 -- 2,459,966
Oregon 25,970,693 2,127,575 -- 2,127,575
Pennsylvania 43,228,243 4,772,035 -- 4,772,035
Virginia 40,194,282 3,234,607 -- 3,234,607
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, 2003, total directors/trustees fees accrued by
the Funds amounted to $53,050.
The Investment Advisory Agreements provide as compensation to FIMCO for
each Fund other than the Tax-Exempt Money Market, Insured Intermediate
and Insured Tax Exempt II, 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
Notes to Financial Statements (continued)
December 31, 2003
annual fee for the Tax-Exempt Money Market and Insured Intermediate 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 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, 2003, FIMCO has voluntarily waived
advisory fees in excess of 0.62% for Insured Tax Exempt; 0.60% for
Insured Tax Exempt II and New York Insured; 0.55% for New Jersey; 0.50%
for Insured Intermediate, Connecticut, Florida, Maryland, Massachusetts,
Michigan, Pennsylvania and Virginia; 0.40% for Arizona, California,
North Carolina, Ohio and Oregon and 0.25% for Colorado, Georgia,
Minnesota and Missouri. For the year ended December 31, 2003, FIMCO
assumed other expenses in excess of 0.10% for Insured Intermediate,
Arizona, California, Connecticut, Florida, Georgia, Maryland,
Massachusetts, Minnesota, Missouri, North Carolina, Ohio and Oregon and
0.15% for Insured Tax Exempt II. FIMCO has assumed other expenses of the
Tax-Exempt Money Market Fund in excess of 0.30% for the period January
1, 2003 to June 30, 2003 and 0.20% for the period July 1, 2003 to
December 31, 2003.
For the year ended December 31, 2003, advisory fees accrued to FIMCO by
the Funds were $13,151,025 of which $3,053,903 was waived. In addition,
other expenses in the amount of $538,369 were assumed by FIMCO.
For the year ended December 31, 2003, FIC, as underwriter, received
$2,854,579 in commissions from the sale of shares of the Funds after
allowing $1,762,919 to other dealers. Shareholder servicing costs
included $971,513 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. For the year ended December 31, 2003, total
distribution plan fees accrued to FIC by the Funds amounted to
$5,351,969. 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.
6. Tax Components of Capital and Distributions to Shareholders--The tax
character of distributions declared for the years ended December 31,
2003 and 2002 were as follows:
Distributions Declared in 2003 from: Distributions Declared in 2002 from:
------------------------------------- -------------------------------------
Long-Term Long-Term
Tax-Exempt Ordinary Capital Tax-Exempt Ordinary Capital
Fund Income Income Gain Total Income Income Gain Total
- ---- ----------- -------- ---------- ----------- ----------- -------- ---------- -----------
Intermediate $ 1,194,166 $ 57,251 $ 396,582 $ 1,647,999 $ 683,600 $239,614 $ 348,114 $ 1,271,328
Tax Exempt 36,256,788 966,475 5,741,711 42,964,974 39,489,981 740,074 20,277,784 60,507,839
Tax Exempt II 3,009,472 234,940 332,876 3,577,288 1,902,687 555,847 695,185 3,153,719
New York 7,572,284 -- 1,593,856 9,166,140 7,655,698 -- 5,334,526 12,990,224
Arizona 943,994 -- 152,462 1,096,456 821,505 -- 196,636 1,018,141
California 1,101,923 -- 60,494 1,162,417 855,311 -- 228,186 1,083,497
Colorado 503,233 -- -- 503,233 422,458 -- 67,489 489,947
Connecticut 1,415,013 21,528 292,125 1,728,666 1,274,151 -- 358,712 1,632,863
Florida 1,469,024 -- 181,087 1,650,111 1,331,334 24,323 426,577 1,782,234
Georgia 394,062 -- 91,146 485,208 367,190 -- 116,102 483,292
Maryland 1,223,459 -- 58,728 1,282,187 1,080,016 -- 83,733 1,163,749
Massachusetts 1,149,216 -- 394,901 1,544,117 1,171,828 18,423 319,934 1,510,185
Michigan 1,799,188 81,428 98,778 1,979,394 1,791,253 -- 885,689 2,676,942
Minnesota 562,643 -- -- 562,643 509,726 -- -- 509,726
Missouri 373,130 -- 9,912 383,042 286,298 -- -- 286,298
New Jersey 2,711,491 4,316 606,171 3,321,978 2,819,319 -- 1,382,135 4,201,454
North Carolina 896,975 -- 147,190 1,044,165 750,291 -- -- 750,291
Ohio 1,055,178 -- -- 1,055,178 951,079 45,636 324,998 1,321,713
Oregon 1,050,169 -- -- 1,050,169 903,644 -- -- 903,644
Pennsylvania 1,872,360 11,362 169,032 2,052,754 1,831,345 -- 444,787 2,276,132
Virginia 1,731,708 22,670 247,840 2,002,218 1,513,609 24,993 212,110 1,750,712
Notes to Financial Statements (continued)
December 31, 2003
As of December 31, 2003, the components of distributable earnings on a
tax basis were:
Undistributed
Undistributed Undistributed Capital Gains
Tax-Exempt Taxable or Capital Total
Ordinary Ordinary (Loss) Unrealized Distributable
Fund Income Income Carryover Appreciation Earnings
- ---- -------- -------- --------- ------------ -------------
Insured Insured Intermediate $ 12,605 $ -- $ -- $ 1,803,561 $ 1,816,166
Insured Tax Exempt 99,900 216,706 (149,881)* 104,438,769 104,605,494
Insured Tax Exempt II 3,907 194 580 4,514,342 4,519,023
New York Insured 236,297 8,228 -- 15,364,267 15,608,792
Arizona 5,587 76 -- 1,771,589 1,777,252
California 4,567 5,944 -- 2,516,184 2,526,695
Colorado 8,579 476 (35,920) 940,895 914,030
Connecticut 11,220 1,232 -- 2,321,842 2,334,294
Florida 22,143 6,825 -- 3,041,275 3,070,243
Georgia 7,398 397 -- 858,863 866,658
Maryland 11,758 3,725 7 2,421,018 2,436,508
Massachusetts 3,838 4,417 -- 2,480,880 2,489,135
Michigan 16,561 6,165 -- 4,242,463 4,265,189
Minnesota 10,996 2,049 (45,280) 1,053,225 1,020,990
Missouri 6,863 332 -- 708,628 715,823
New Jersey 11,221 2,019 -- 5,822,626 5,835,866
North Carolina 3,809 1,971 -- 1,766,195 1,771,975
Ohio 11,147 438 (7,929) 2,422,803 2,426,459
Oregon 2,568 -- (39,698) 2,088,983 2,051,853
Pennsylvania 20,587 14,756 -- 4,712,177 4,747,520
Virginia 53,790 891 (228)* 3,210,013 3,264,466
* Includes post October losses of $149,881 for Insured Tax Exempt and
$11,780 for Virginia.
This page intentionally left blank.
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.
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
---------------------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
------------------------------------- -----------------------
Net Asset Net
Value Realized and
------- Net 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
- -------
1999 $ 1.00 $.026 $ -- $ .026 $.026 $ -- .026
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
Class B
- -------
1999 1.00 .018 -- .018 .018 -- .018
2000 1.00 .026 -- .026 .026 -- .026
2001 1.00 .014 -- .014 .014 -- .014
2002 1.00 .001 -- .001 .001 -- .001
2003 1.00 -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
INSURED INTERMEDIATE TAX EXEMPT FUND
- ------------------------------------
Class A
- -------
1999 $ 6.01 $.231 $(.200) $ .031 $.231 $ -- $.231
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
Class B
- -------
1999 6.02 .173 (.202) (.029) .171 -- .171
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
- ---------------------------------------------------------------------------------------------------------------------------
INSURED TAX EXEMPT FUND
- -----------------------
Class A
- -------
1999 $10.55 $.515 $(.889) $(.374) $.466 $ -- $.466
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
Class B
- -------
1999 10.55 .431 (.877) (.446) .394 -- .394
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
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------- ------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets++ Waived or Assumed
-------------------- -----------------------
Net Asset
Value Net Net Portfolio
----- Total Net Assets Investment Investment Turnover
End of Return* End of Year Expenses Income Expenses Income Rate
Year (%) (in thousands) (%) (%) (%) (%) (%)
- ---------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT MONEY MARKET FUND
- ----------------------------
Class A
- -------
1999 $ 1.00 2.61 $ 16,478 .80 2.58 1.20 2.18 N/A
2000 1.00 3.43 17,553 .80 3.38 1.09 3.09 N/A
2001 1.00 2.17 20,185 .80 2.10 0.88 2.02 N/A
2002 1.00 0.81 18,409 .80 0.81 0.92 0.69 N/A
2003 1.00 .34 16,902 .75 .35 1.11 (.01) N/A
Class B
- -------
1999 1.00 1.82 1 1.55 1.83 1.95 1.43 N/A
2000 1.00 2.66 140 1.55 2.63 1.84 2.34 N/A
2001 1.00 1.41 30 1.55 1.35 1.63 1.27 N/A
2002 1.00 0.12 64 1.48 0.13 1.60 0.01 N/A
2003 1.00 -- 64 1.10 -- 1.46 (.36) N/A
- ---------------------------------------------------------------------------------------------------------------------------
INSURED INTERMEDIATE TAX EXEMPT FUND
- ------------------------------------
Class A
- -------
1999 $ 5.81 0.51 $ 8,263 .50 3.88 1.18 3.20 142
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
Class B
- -------
1999 5.82 (0.50) 1,154 1.50 2.88 1.88 2.50 142
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
- ---------------------------------------------------------------------------------------------------------------------------
INSURED TAX EXEMPT FUND
- -----------------------
Class A
- -------
1999 $ 9.71 (3.63) $ 958,668 1.12 5.03 N/A N/A 31
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
Class B
- -------
1999 9.71 (4.31) 4,290 1.85 4.30 N/A N/A 31
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
- ---------------------------------------------------------------------------------------------------------------------------
Financial Highlights (continued)
FIRST INVESTORS
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
---------------------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
------------------------------------- -----------------------
Net Asset Net
Value Realized and
------- Net 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
- -------
1999 $14.56 $.670 $(.940) $(.270) $.650 $.030 $ .680
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
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
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK INSURED TAX FREE FUND
- ------------------------------
Class A
- -------
1999 $14.85 $.718 $(1.249) $(.531) $.659 $ -- $.659
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
Class B
- -------
1999 14.85 .618 (1.250) (.632) .558 -- .558
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
- ---------------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
- ---------------------------------
ARIZONA FUND
- ------------
Class A
- -------
1999 $13.62 $.707 $(.955) $(.248) $.662 $ -- .662
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
Class B
- -------
1999 13.61 .603 (.948) (.345) .555 -- .555
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
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------- ------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets++ Waived or Assumed
-------------------- -----------------------
Net Asset
Value Net Net Portfolio
----- Total Net Assets Investment Investment Turnover
End of Return* End of Year Expenses Income Expenses Income Rate
Year (%) (in thousands) (%) (%) (%) (%) (%)
- ---------------------------------------------------------------------------------------------------------------------------
INSURED TAX EXEMPT FUND II **
- --------------------------
Class A
- -------
1999 $13.61 (1.92) $ 15,842 .80 4.72 1.73 3.79 205
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
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
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK INSURED TAX FREE FUND
- ------------------------------
Class A
- -------
1999 $13.66 (3.67) $164,622 1.09 4.99 1.21 4.87 55
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 0.99 4.11 1.14 3.96 70
2003 14.83 4.37 184,944 .99 3.99 1.14 3.84 21
Class B
- -------
1999 13.66 (4.34) 4,734 1.79 4.29 1.91 4.17 55
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
- ---------------------------------------------------------------------------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
- ---------------------------------
ARIZONA FUND
- ------------
Class A
- -------
1999 $12.71 $(1.88) $ 11,746 .50 5.37 1.15 4.72 62
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
Class B
- -------
1999 12.71 (2.60) 508 1.30 4.57 1.95 3.92 62
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
- ---------------------------------------------------------------------------------------------------------------------------
Financial Highlights (continued)
FIRST INVESTORS
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
---------------------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
------------------------------------- -----------------------
Net Asset Net
Value Realized and
------- Net 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
- -------
1999 $12.20 $.609 $(.952) $(.343) $.558 $.019 $.577
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
Class B
- -------
1999 12.19 .511 (.949) (.438) .463 .019 .482
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
- ---------------------------------------------------------------------------------------------------------------------------
COLORADO FUND
- -------------
Class A
- -------
1999 $13.15 $.634 $(.907) $(.273) $.637 $ -- $.637
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
Class B
- -------
1999 13.15 .534 (.914) (.380) .530 -- .530
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
- ---------------------------------------------------------------------------------------------------------------------------
CONNECTICUT FUND
- ----------------
Class A
- -------
1999 $13.36 $.651 $(.902) $(.251) $.619 $ -- $.619
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
Class B
- -------
1999 13.35 .552 (.901) (.349) .511 -- .511
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
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------- ------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets++ Waived or Assumed
-------------------- -----------------------
Net Asset
Value Net Net Portfolio
----- Total Net Assets Investment Investment Turnover
End of Return* End of Year Expenses Income Expenses Income Rate
Year (%) (in thousands) (%) (%) (%) (%) (%)
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA FUND
- ---------------
Class A
- -------
1999 $11.28 (2.88) $13,383 .80 5.15 1.17 4.79 49
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
Class B
- -------
1999 11.27 (3.67) 483 1.60 4.35 1.97 3.99 49
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
- ---------------------------------------------------------------------------------------------------------------------------
COLORADO FUND
- -------------
Class A
- -------
1999 $12.24 (2.15) $ 4,068 .47 4.99 1.28 4.18 40
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
Class B
- -------
1999 12.24 (2.96) 372 1.27 4.19 2.08 3.38 40
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
- ---------------------------------------------------------------------------------------------------------------------------
CONNECTICUT FUND
- ----------------
Class A
- -------
1999 $12.49 (1.93) $17,903 .80 5.04 1.15 4.69 47
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
Class B
- -------
1999 12.49 (2.67) 3,205 1.60 4.24 1.95 3.89 47
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
- ---------------------------------------------------------------------------------------------------------------------------
Financial Highlights (continued)
FIRST INVESTORS
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
---------------------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
------------------------------------- -----------------------
Net Asset Net
Value Realized and
------- Net 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
- -------
1999 $13.75 $.679 $(1.074) $(.395) $.625 $ -- $.625
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
Class B
- -------
1999 13.75 .572 (1.065) (.493) .517 -- .517
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
- ---------------------------------------------------------------------------------------------------------------------------
GEORGIA FUND
- ------------
Class A
- -------
1999 $13.27 $.633 $(1.025) $(.392) $.638 $ -- $.638
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
Class B
- -------
1999 13.25 .540 (1.029) (.489) .531 -- .531
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
- ---------------------------------------------------------------------------------------------------------------------------
MARYLAND FUND
- -------------
Class A
- -------
1999 $13.62 $.658 $(.994) $(.336) $.654 $ -- $.654
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
Class B
- -------
1999 13.62 .551 (.995) (.444) .546 -- .546
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
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------- ------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets++ Waived or Assumed
-------------------- -----------------------
Net Asset
Value Net Net Portfolio
----- Total Net Assets Investment Investment Turnover
End of Return* End of Year Expenses Income Expenses Income Rate
Year (%) (in thousands) (%) (%) (%) (%) (%)
- ---------------------------------------------------------------------------------------------------------------------------
FLORIDA FUND
- ------------
Class A
- -------
1999 $12.73 (2.93) $23,729 .80 5.12 1.12 4.80 68
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
Class B
- -------
1999 12.74 (3.65) 789 1.60 4.32 1.92 4.00 68
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
- ---------------------------------------------------------------------------------------------------------------------------
GEORGIA FUND
- ------------
Class A
- -------
1999 $12.24 (3.04) $ 5,527 .48 4.99 1.19 4.28 57
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
Class B
- -------
1999 12.23 (3.78) 296 1.28 4.19 1.99 3.48 57
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
- ---------------------------------------------------------------------------------------------------------------------------
MARYLAND FUND
- -------------
Class A
- -------
1999 $12.63 (2.54) $12,579 .50 5.00 1.15 4.35 44
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
Class B
- -------
1999 12.63 (3.33) 2,718 1.30 4.20 1.95 3.55 44
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
- ---------------------------------------------------------------------------------------------------------------------------
Financial Highlights (continued)
FIRST INVESTORS
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
---------------------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
------------------------------------- -----------------------
Net Asset Net
Value Realized and
------- Net 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
- -------
1999 $12.02 $.609 $(.887) $(.278) $.572 $ -- $.572
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
Class B
- -------
1999 12.02 .520 (.894) (.374) .476 -- .476
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
- ---------------------------------------------------------------------------------------------------------------------------
MICHIGAN FUND
- -------------
Class A
- -------
1999 $13.09 $.603 $(.938) $(.335) $.595 $ -- $.595
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
Class B
- -------
1999 13.08 .502 (.930) (.428) .492 -- .492
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
- ---------------------------------------------------------------------------------------------------------------------------
MINNESOTA FUND
- --------------
Class A
- -------
1999 $11.75 $.597 $(.785) $(.188) $.582 $ -- $.582
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
Class B
- -------
1999 11.75 .499 (.781) (.282) .488 -- .488
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
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------- ------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets++ Waived or Assumed
-------------------- -----------------------
Net Asset
Value Net Net Portfolio
----- Total Net Assets Investment Investment Turnover
End of Return* End of Year Expenses Income Expenses Income Rate
Year (%) (in thousands) (%) (%) (%) (%) (%)
- ---------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS FUND
- ------------------
Class A
- -------
1999 $11.17 (2.39) $20,507 .80 5.20 1.15 4.85 32
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
Class B
- -------
1999 11.17 (3.19) 1,177 1.60 4.40 1.95 4.05 32
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
- ---------------------------------------------------------------------------------------------------------------------------
MICHIGAN FUND
- -------------
Class A
- -------
1999 $12.16 (2.63) $36,506 .87 4.74 1.12 4.49 21
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
Class B
- -------
1999 12.16 (3.34) 895 1.67 3.94 1.92 3.69 21
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
- ---------------------------------------------------------------------------------------------------------------------------
MINNESOTA FUND
- --------------
Class A
- -------
1999 $10.98 (1.65) $ 8,363 .50 5.26 1.25 4.51 23
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
Class B
- -------
1999 10.98 (2.46) 83 1.30 4.46 2.05 3.71 23
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
- ---------------------------------------------------------------------------------------------------------------------------
Financial Highlights (continued)
FIRST INVESTORS
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
---------------------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
------------------------------------- -----------------------
Net Asset Net
Value Realized and
------- Net 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
- -------
1999 $12.97 $.650 $(.904) $(.254) $.626 $ -- $.626
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
Class B
- -------
1999 12.97 .553 (.905) (.352) .518 -- .518
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
- ---------------------------------------------------------------------------------------------------------------------------
NEW JERSEY FUND
- ---------------
Class A
- -------
1999 $13.31 $.653 $(.919) $(.266) $.594 $ -- $.594
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
Class B
- -------
1999 13.29 .537 (.909) (.372) .488 -- .488
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
- ---------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA FUND
- -------------------
Class A
- -------
1999 $12.90 $.606 $(.900) $(.294) $.596 $ -- $.596
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
Class B
- -------
1999 12.90 .490 (.891) (.401) .489 -- .489
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
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------- ------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets++ Waived or Assumed
-------------------- -----------------------
Net Asset
Value Net Net Portfolio
----- Total Net Assets Investment Investment Turnover
End of Return* End of Year Expenses Income Expenses Income Rate
Year (%) (in thousands) (%) (%) (%) (%) (%)
- ---------------------------------------------------------------------------------------------------------------------------
MISSOURI FUND
- -------------
Class A
- -------
1999 $12.09 (2.02) $ 2,471 .47 5.20 1.50 4.17 66
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
Class B
- -------
1999 12.10 (2.78) 210 1.27 4.40 2.30 3.37 66
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
- ---------------------------------------------------------------------------------------------------------------------------
NEW JERSEY FUND
- ---------------
Class A
- -------
1999 $12.45 (2.05) $ 52,846 .97 5.02 1.12 4.87 52
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
Class B
- -------
1999 12.43 (2.85) 3,338 1.77 4.22 1.92 4.07 52
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
- ---------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA FUND
- -------------------
Class A
- -------
1999 $12.01 (2.35) $ 8,978 .48 4.84 1.24 4.08 47
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
Class B
- -------
1999 12.01 (3.18) 596 1.28 4.04 2.04 3.28 47
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
- ---------------------------------------------------------------------------------------------------------------------------
Financial Highlights (continued)
FIRST INVESTORS
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
---------------------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
------------------------------------- -----------------------
Net Asset Net
Value Realized and
------- Net 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
- -------
1999 $12.70 $.636 $(.853) $(.217) $.603 $ -- $.603
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
Class B
- -------
1999 12.70 .529 (.850) (.321) .499 -- .499
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
- ---------------------------------------------------------------------------------------------------------------------------
OREGON FUND
- -----------
Class A
- -------
1999 $12.77 $.585 $(.828) $(.243) $.577 $ -- $.577
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
Class B
- -------
1999 12.76 .489 (.846) (.357) .473 -- .473
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
- ---------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA FUND
- -----------------
Class A
- -------
1999 $13.26 $.606 $(.893) $(.287) $.613 $ -- $.613
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
Class B
- -------
1999 13.25 .498 (.890) (.392) .508 -- .508
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
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------- ------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets++ Waived or Assumed
-------------------- -----------------------
Net Asset
Value Net Net Portfolio
----- Total Net Assets Investment Investment Turnover
End of Return* End of Year Expenses Income Expenses Income Rate
Year (%) (in thousands) (%) (%) (%) (%) (%)
- ---------------------------------------------------------------------------------------------------------------------------
OHIO FUND
- ---------
Class A
- -------
1999 $11.88 (1.77) $18,574 .80 5.15 1.17 4.78 48
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
Class B
- -------
1999 11.88 (2.59) 640 1.60 4.35 1.97 3.98 48
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
- ---------------------------------------------------------------------------------------------------------------------------
OREGON FUND
- -----------
Class A
- -------
1999 $11.95 (1.95) $12,389 .50 4.72 1.21 4.01 33
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
Class B
- -------
1999 11.93 (2.85) 1,096 1.30 3.92 2.01 3.21 33
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
- ---------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA FUND
- -----------------
Class A
- -------
1999 $12.36 (2.24) $36,737 .86 4.69 1.11 4.44 36
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
Class B
- -------
1999 12.35 (3.03) 1,936 1.66 3.89 1.91 3.64 36
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
- ---------------------------------------------------------------------------------------------------------------------------
Financial Highlights (continued)
FIRST INVESTORS
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
---------------------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
------------------------------------- -----------------------
Net Asset Net
Value Realized and
------- Net 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
- -------
1999 $13.26 $.629 $(.967) $(.338) $.612 $ -- $.612
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
Class B
- -------
1999 13.24 .537 (.982) (.445) .505 -- .505
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
- ---------------------------------------------------------------------------------------------------------------------------
* Calculated without sales charges
** 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
+ Annualized
++ Net of expenses waived or assumed by the investment adviser and/or the
transfer agent (Note 5)
See notes to financial statements.
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------- ------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets++ Waived or Assumed
-------------------- -----------------------
Net Asset
Value Net Net Portfolio
----- Total Net Assets Investment Investment Turnover
End of Return* End of Year Expenses Income Expenses Income Rate
Year (%) (in thousands) (%) (%) (%) (%) (%)
- ---------------------------------------------------------------------------------------------------------------------------
VIRGINIA FUND
- -------------
Class A
- -------
1999 $12.31 (2.62) $21,008 .80 4.90 1.17 4.53 36
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
Class B
- -------
1999 12.29 (3.44) 1,059 1.60 4.10 1.97 3.73 36
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
- ---------------------------------------------------------------------------------------------------------------------------
Independent Auditors' Report
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 statement 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, 2003, the related
statement of operations for the year then ended, the statement 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 auditing standards generally
accepted in the United States of America. Those standards require that
we plan and perform the audit to obtain reasonable assurance about
whether the financial statements and financial highlights are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as
of December 31, 2003, 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, 2003, 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 2, 2004
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, Date of Birth Length of During Past Fund Complex Directorships
and Address Service 5 Years Overseen Held
- ----------- ------- ------- -------- ----
DISINTERESTED DIRECTORS/TRUSTEES
Robert M. Grohol 1/16/1932 Director/Trustee None/Retired 50 None
c/o First Investors since 6/30/00
Management Company, Inc.
95 Wall Street
New York, NY 10005
Rex R. Reed 3/19/1922 Director/Trustee None/Retired 50 None
c/o First Investors since 3/31/84
Management Company, Inc.
95 Wall Street
New York, NY 10005
Herbert Rubinstein 6/14/1921 Director/Trustee None/Retired 50 None
c/o First Investors since 9/20/79
Management Company, Inc.
95 Wall Street
New York, NY 10005
James M. Srygley 10/17/1932 Director/Trustee Owner 50 None
c/o First Investors since 1/19/95 Hampton
Management Company, Inc. Properties
95 Wall Street
New York, NY 10005
Robert F. Wentworth 7/5/1929 Director/Trustee None/Retired 50 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, Date of Birth Length of During Past Fund Complex Directorships
and Address Service 5 Years Overseen Held
- ----------- ------- ------- -------- ----
INTERESTED DIRECTORS/TRUSTEES**
Glenn O. Head 8/16/1925 Director/Trustee Chairman of 50 None
c/o First Investors since 1968 First Investors
Management Company, Inc. Corporation,
95 Wall Street Chairman of
New York, NY 10005 First Investors
Consolidated
Corporation,
Chairman of
First Investors
Management
Company, Inc.,
Chairman of
Administrative Data
Management Corp.,
and officer of
other affiliated
companies***
Kathryn S. Head 12/31/1955 Director/Trustee Vice President 50 None
c/o First Investors since 3/17/94 of First Investors
Management Company, Inc. Corporation,
581 Main Street President President of
Woodbridge, NJ 07095 since 11/15/01 First Investors
Consolidated
Corporation,
President of
First Investors
Management
Company, Inc.,
President of
Administrative Data
Management Corp.,
Chairman of
First Investors
Federal Savings
Bank and
officer of
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, Date of Birth Length of During Past Fund Complex Directorships
and Address Service 5 Years Overseen Held
- ----------- ------- ------- -------- ----
INTERESTED DIRECTORS/TRUSTEES** (continued)
Larry R. Lavoie 9/12/1947 Director/Trustee General Counsel 50 None
c/o First Investors since 9/17/98 First Investors
Management Company, Inc. Corporation
95 Wall Street and other
New York, NY 10005 affiliated
companies***
John T. Sullivan 1/18/1932 Director/Trustee Of Counsel 50 None
c/o First Investors since 9/20/79 Hawkins,
Management Company, Inc. Delafield &
95 Wall Street Wood; Director
New York, NY 10005 and Chairman
of Executive
Committee of
First Investors
Corporation
* 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 an officer of the Funds and is the daughter of Mr.
Head. Mr. Lavoie is an interested director/trustee of the Funds because
he indirectly owns securities issued by and is an officer of the
adviser and principal underwriter of the Funds. 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, School Financial Management
Services, Inc., First Investors Federal Savings Bank, First
Investors Credit Corporation and First Investors Resources, Inc.
Position(s)
Held with Principal Number of Other
Funds and Occupation(s) Portfolios in Trusteeships
Name, Date of Birth Length of During Past Fund Complex Directorships
and Address Service 5 Years Overseen Held
- ----------- ------- ------- -------- ----
OFFICERS WHO ARE NOT DIRECTORS/TRUSTEES
Clark D. Wagner 2/25/1959 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 11/24/1965 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 8/2/1957 Treasurer Treasurer 50 None
c/o First Investors since 1988 and Principal
Management Company, Inc. Accounting Officer
581 Main Street
Woodbridge, NJ 07095
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
Transfer Agent
Administrative Data Management Corp.
581 Main Street
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
1818 Market Street
Philadelphia, PA 19103
The 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 U.S. Government.
It is the Funds' practice to mail only one copy of their annual and
semi-annual reports to any address at which more than one shareholder
with the same last name has indicated that mail is to be delivered.
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.
NOTES
NOTES
NOTES
NOTES
Item 2. Code of Ethics - Filed herewith
The Registrant's Board of Directors/Trustees ("Board") has
adopted a Code of Ethics that applies to the First Investors Funds'
("Funds") principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the Funds or a third party. The Code of Ethics is attached to this
report as Exhibit A.
During the period of the report, there have been no amendments to the
Code of Ethics or waivers, implicit or otherwise, from its provisions.
Item 3. Audit Committee Financial Expert
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,
-----------------
2003 2002
---- ----
(a) Audit Fees
First Investors
Tax-Exempt Money Market Fund, Inc. $12,400 $12,500
Series Fund 7,400 8,000
Insured Tax Exempt Fund, Inc. 37,900 38,000
Executive Investors Trust 11,900 11,500
Multi-State Insured Tax Free Fund 99,000 93,000
New York Tax Free Fund, Inc. 18,400 18,500
Fiscal Year Ended
December 31,
-----------------
2003 2002
---- ----
(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,
-----------------
2003 2002
---- ----
(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,
-----------------
2003 2002
---- ----
(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 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-approved 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 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;
(f) 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;
(g) to review and approve the fees charged by the auditors for
audit and non-audit services for the Funds; and
(h) 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.
(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, 2003 and 2002
were $35,000 and $32,000, 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. [Reserved]
Item 7. Disclosure of Proxy Voting Policies & Procedures for Closed-End
Management Investment Companies
Not applicable to the Registrant
Item 8. [Reserved]
Item 9. 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 10. Exhibits
(a) Code of Ethics - Filed herewith
(b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002 - Filed herewith
(c) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 - Filed herewith
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the Registrant 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 1, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed below by
the following persons on behalf of the Registrant and in the capacities and
on the dates indicated.
First Investors 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 1, 2004