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 811-5690; 811-6618;
811-3169
FIRST INVESTORS SERIES FUND
FIRST INVESTORS SERIES FUND II, INC.
FIRST INVESTORS GLOBAL FUND, INC.
(Exact name of registrant as specified in charter)
95 Wall Street
New York, NY 10005
(Address of principal executive offices) (Zip code)
Joseph I. Benedek
First Investors Management Company, Inc.
Raritan Plaza I
8th Floor
Edison, NJ 08837-3620
1-732-855-2712
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
1-212-858-8000
DATE OF FISCAL YEAR END: SEPTEMBER 30, 2005
DATE OF REPORTING PERIOD: MARCH 31, 2005
Item 1. Reports to Stockholders
The Semi-Annual Report to Stockholders follows
[First Investors Logo]
EQUITY FUNDS
TOTAL RETURN
VALUE
BLUE CHIP
GROWTH & INCOME
ALL-CAP GROWTH
MID-CAP OPPORTUNITY
SPECIAL SITUATIONS
FOCUSED EQUITY
GLOBAL
SEMI-ANNUAL REPORT
March 31, 2005
Equity Market Overview
FIRST INVESTORS EQUITY FUNDS
Dear Investor:
The U.S. economy decelerated during the reporting period, primarily in
response to higher oil prices. Following a third quarter 2004 gain of 4%,
economic growth decelerated to 3.8% in the fourth quarter and 3.1% in the
first quarter of 2005. Nonetheless, the unemployment rate continued to
decline from 5.4% to 5.2% as the economy -- in its fourth year of
expansion -- added over one million new jobs.
Inflation moved higher during the reporting period, although from a low
base. The consumer price index showed a year-over-year gain of 3.1%
through March, up from 2.5% six months earlier. Excluding the volatile
food and energy components, consumer prices rose a milder 2.3% for the
twelve months ending in March.
Concern about potential inflation, as well as the belief that monetary
policy remained accommodative, kept the Federal Reserve ("the Fed") on a
steady course of tighter monetary policy. Specifically, the Fed raised the
benchmark federal funds rate four times during the reporting period, from
1.75% to 2.75%. As well, the Fed indicated that it would continue to raise
rates at a measured pace.
During the last three months of 2004, stocks rallied broadly, as the
economy was firing on all cylinders, concerns over Iraq and terrorism
lessened, the U.S. Presidential election concluded and consumer and
corporate confidence advanced. Stocks were up convincingly during this
period, with the S&P 500 up 9.2% and the Dow Jones Industrials Average up
7.6%. The smaller cap indices also posted strong results, as the Russell
2000 Index gained 13.7% during this time period. This was achieved despite
troubling issues on the horizon, such as increased inflationary pressures
due to surging energy costs and a weakening U.S. dollar.
The strong momentum from 2004's strong rally did not carry into 2005,
however, as investors became more defensively positioned amidst increased
volatility. As the Fed continued its interest rate hikes due to concerns
that inflationary pressures had accelerated, investors grew more concerned
over the sustainability of the economy's strength. Worries over the rate
of future corporate profits growth also weighed on the markets. The broad
market averages were lackluster, with both the S&P 500 and Dow Jones
Industrials off 2.6% each. The more speculative Nasdaq-OTC Composite was
down 8.1%. Small cap stocks underperformed their larger counterparts
during the first part of 2005, with the Russell 2000 down 5.6%. Overall,
the period's returns were slightly positive, even as the economy faced
challenging headwinds.
Equity Market Overview (continued)
FIRST INVESTORS EQUITY FUNDS
Thank you for placing your trust in First Investors. As always, we appreciate
the opportunity to serve your investment needs.
Sincerely,
/s/ EDWIN D. MISKA
Edwin D. Miska
Director of Equities
First Investors Management Company, Inc.
May 2, 2005
This Market Overview is not part of the Funds' financial report and is
submitted for the general information of the shareholders of the Funds. It
is not authorized for distribution to prospective investors in the Funds
unless preceded or accompanied by an effective prospectus. The Market
Overview reflects conditions through the end of the period as stated on
the cover. Market conditions are subject to change. This Market Overview
may not be relied on as investment advice or an indication of current or
future trading intent on behalf of any Fund.
There are a variety of risks associated with investing in mutual funds.
For stock funds, the risks include market risk (the risk that the entire
stock market will decline because of an event such as a deterioration in
the economy or a rise in interest rates), as well as special risks
associated with investing in certain types of stock funds, such as
small-cap, global and international funds. For bond funds, the risks
include interest rate risk and credit risk. Interest rate risk is the risk
that bonds will decrease in value as interest rates rise. As a general
matter, longer-term bonds fluctuate more than shorter-term bonds in
reaction to changes in interest rates. Credit risk is the risk that bonds
will decline in value as the result of a decline in the credit rating of
the bonds or the economy as a whole, or that the issuer will be unable to
pay interest and/or principal when due. You should consult your prospectus
for a precise explanation of the risks associated with your fund.
Understanding Your Fund's Expenses
FIRST INVESTORS EQUITY FUNDS
As a mutual fund shareholder, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchase payments
(on Class A shares only), contingent deferred sales charges on
redemptions (on Class B shares only); and (2) ongoing costs, including
advisory fees; distribution and service fees (12b-1); and other expenses.
These examples are intended to help you understand your ongoing costs (in
dollars) of investing in the Funds and to compare these costs with the
ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 in each Fund at the
beginning of the period, October 1, 2004, and held for the entire
six-month period ended March 31, 2005. The calculations assume that no
shares were bought or sold during the period. Your actual costs may have
been higher or lower, depending on the amount of your investment and the
timing of any purchases or redemptions.
Actual Expense Example:
These amounts help you to estimate the actual expenses that you paid over
the period. The "Ending Account Value" shown is derived from the Fund's
actual return, and the "Expenses Paid During Period" shows the dollar
amount that would have been paid by an investor who started with $1,000 in
the Fund. You may use the information here, together with the amount you
invested, to estimate the expenses that you paid during the period.
To estimate the expenses you paid on your account during this period
simply divide your ending account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.60), then multiply the result by the
number given for your Fund under the heading "Expenses Paid During
Period".
Hypothetical Expense Example:
The amounts in the table provide information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio
for Class A and Class B shares, and an assumed rate of return of 5% per
year before expenses, which is not the Fund's actual return. The
hypothetical account values and expenses may not be used to estimate the
actual ending account balance or expenses you paid for the period. You may
use this information to compare the ongoing costs of investing in the Fund
and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the
other funds.
Please note that the expenses shown in the table are meant to highlight
and help you compare your ongoing costs only and do not reflect any
transactional costs, such as front-end or contingent deferred sales
charges (loads). Therefore, the hypothetical expense example is useful in
comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
Fund Expenses
FIRST INVESTORS TOTAL RETURN FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with the costs of
other mutual funds. Please refer to page 3 for a detailed explanation of
the information presented in these examples.
- ---------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(10/1/04) (3/31/05) (10/1/04-3/31/05)*
- ---------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,051.95 $7.06
Hypothetical
(5% annual return before expenses) $1,000.00 $1,018.05 $6.94
- ---------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,048.38 $10.62
Hypothetical
(5% annual return before expenses) $1,000.00 $1,014.56 $10.45
- ---------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.38% for Class A shares and 2.08%
for Class B shares, multiplied by the average account value over the period, multiplied
by 182/365 (to reflect the one-half year period). Expenses paid during the period are
net of expenses waived.
Portfolio Composition
TOP TEN SECTORS
(BAR CHART: Top Ten Sectors)
Financials 20.5%
Consumer Discretionary 11.9%
Industrials 9.9%
Health Care 9.2%
Mortgage-Backed Certificates 9.1%
Information Technology 9.1%
Consumer Staples 8.7%
Materials 5.3%
Energy 5.1%
Municipals 2.8%
Portfolio holdings and allocations are subject to change. Percentages are
as of March 31, 2005, and are based on the total value of investments.
Portfolio of Investments
FIRST INVESTORS TOTAL RETURN FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--64.9%
Consumer Discretionary--10.6%
64,800 Blockbuster, Inc. - Class "A" $572,184 $19
70,500 Claire's Stores, Inc. 1,624,320 55
15,400 Clear Channel Communications, Inc. 530,838 18
58,400 * Cost Plus, Inc. 1,569,792 53
57,700 Domino's Pizza, Inc. 1,078,413 37
34,400 * GameStop Corporation - Class "A" 762,304 26
15,500 Genuine Parts Company 674,095 23
21,500 Harley-Davidson, Inc. 1,241,840 42
70,700 * Hollywood Entertainment Corporation 931,119 32
30,500 Home Depot, Inc. 1,166,320 40
23,800 J.C. Penney Company, Inc. (Holding Co.) 1,235,696 42
30,800 Kenneth Cole Productions, Inc. - Class "A" 897,512 30
20,900 Lear Corporation 927,124 31
46,100 Leggett & Platt, Inc. 1,331,368 45
64,900 McDonald's Corporation 2,020,986 69
51,300 Movado Group, Inc. 949,050 32
27,500 Neiman Marcus Group, Inc. - Class "A" 2,516,525 85
3,000 Neiman Marcus Group, Inc. - Class "B " 270,750 9
29,000 * Netflix, Inc. 314,650 11
93,300 * Office Depot, Inc. 2,069,394 70
58,300 Orient-Express Hotels, Ltd. 1,521,630 52
21,600 Oxford Industries, Inc. 790,344 27
36,500 Polo Ralph Lauren Corporation - Class "A" 1,416,200 48
28,500 RadioShack Corporation 698,250 24
16,100 Ross Stores, Inc. 469,154 16
19,900 Sherwin-Williams Company 875,401 30
43,500 * Steiner Leisure Ltd. 1,422,015 48
37,800 Viacom, Inc. - Class "B" 1,316,574 45
- ----------------------------------------------------------------------------------------------------------------------
31,193,848 1,059
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--5.3%
30,700 Altria Group, Inc. 2,007,473 68
13,500 Bunge, Ltd. 727,380 25
15,300 Coca-Cola Company 637,551 21
77,000 * Herbalife, Ltd. 1,173,480 40
35,000 Hormel Foods Corporation 1,088,850 37
19,300 Kimberly-Clark Corporation 1,268,589 43
134,700 Nu Skin Enterprises, Inc. - Class "A" 3,032,097 103
15,300 PepsiCo, Inc. 811,359 27
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS TOTAL RETURN FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples (continued)
23,100 Procter & Gamble Company $1,224,300 $41
34,900 * Smithfield Foods, Inc. 1,101,095 37
25,235 Tootsie Roll Industries, Inc. 757,050 26
23,400 Wal-Mart Stores, Inc. 1,172,574 40
23,300 WD-40 Company 757,017 26
- ----------------------------------------------------------------------------------------------------------------------
15,758,815 534
- ----------------------------------------------------------------------------------------------------------------------
Energy--5.1%
19,700 Anadarko Petroleum Corporation 1,499,170 51
76,600 Chesapeake Energy Corporation 1,680,604 57
12,000 ConocoPhillips 1,294,080 44
35,500 ExxonMobil Corporation 2,115,800 72
24,200 Noble Corporation 1,360,282 46
46,000 Suncor Energy, Inc. 1,849,660 63
30,300 * Swift Energy Company 861,732 29
36,300 * Transocean, Inc. 1,867,998 63
15,900 Unocal Corporation 980,871 33
43,866 XTO Energy, Inc. 1,440,559 49
- ----------------------------------------------------------------------------------------------------------------------
14,950,756 507
- ----------------------------------------------------------------------------------------------------------------------
Financials--14.1%
15,700 American Express Company 806,509 27
24,600 American International Group, Inc. 1,363,086 46
61,006 Bank of America Corporation 2,690,365 91
10,800 Bear Stearns Companies, Inc. 1,078,920 37
45,900 Citigroup, Inc. 2,062,746 70
62,300 Colonial BancGroup, Inc. 1,278,396 43
30,500 Comerica, Inc. 1,679,940 57
65,200 Doral Financial Corporation 1,427,228 48
39,300 Endurance Specialty Holdings, Ltd. 1,487,112 50
15,600 Fannie Mae 849,420 29
36,500 Independence Community Bank Corporation 1,423,500 48
47,400 JPMorgan Chase & Company 1,640,040 56
17,400 Lehman Brothers Holdings, Inc. 1,638,384 56
52,200 MBNA Corporation 1,281,510 43
32,100 Merrill Lynch & Company, Inc. 1,816,860 62
59,800 Montpelier Re Holdings, Ltd. 2,101,970 71
27,500 Morgan Stanley 1,574,375 53
27,700 National City Corporation 927,950 32
55,500 New York Community Bancorp, Inc. 1,007,880 34
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Financials (continued)
69,000 NewAlliance Bancshares, Inc. $966,000 $33
69,032 North Fork Bancorporation, Inc. 1,914,948 65
23,000 Plum Creek Timber Company, Inc. (REIT) 821,100 28
32,500 Safeco Corporation 1,583,075 54
15,400 South Financial Group, Inc. 470,316 16
61,800 Sovereign Bancorp, Inc. 1,369,488 47
52,100 U.S. Bancorp 1,501,522 51
20,300 U.S.B. Holding Co., Inc. 450,457 15
30,900 Wachovia Corporation 1,573,119 53
38,500 Washington Mutual, Inc. 1,520,750 52
21,500 Wells Fargo & Company 1,285,700 44
- ----------------------------------------------------------------------------------------------------------------------
41,592,666 1,411
- ----------------------------------------------------------------------------------------------------------------------
Health Care--8.4%
49,400 Abbott Laboratories 2,303,028 78
18,200 Aetna, Inc. 1,364,090 46
14,200 * Amgen, Inc. 826,582 28
95,100 * Boston Scientific Corporation 2,785,479 95
9,000 Eli Lilly & Company 468,900 16
20,200 * Forest Laboratories, Inc. 746,390 25
6,000 * Genentech, Inc. 339,660 12
20,800 Guidant Corporation 1,537,120 52
30,800 Johnson & Johnson 2,068,528 70
16,000 * Laboratory Corporation of America Holdings 771,200 26
15,100 Medtronic, Inc. 769,345 26
24,700 Merck & Company, Inc. 799,539 27
100,280 Pfizer, Inc. 2,634,356 89
44,900 * Priority Healthcare Corporation 971,187 33
36,600 * Thermo Electron Corporation 925,614 32
29,000 * Waters Corporation 1,037,910 35
23,000 * Wellpoint, Inc. 2,883,050 98
36,800 Wyeth 1,552,224 53
- ----------------------------------------------------------------------------------------------------------------------
24,784,202 841
- ----------------------------------------------------------------------------------------------------------------------
Industrials--7.4%
15,900 3M Company 1,362,471 46
63,100 * AGCO Corporation 1,151,575 39
15,600 Alexander & Baldwin, Inc. 642,720 22
29,700 Briggs & Stratton Corporation 1,081,377 37
9,300 Caterpillar, Inc. 850,392 29
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS TOTAL RETURN FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Industrials (continued)
30,600 Cendant Corporation $628,524 $21
30,600 Chicago Bridge & Iron Company NV - NY Shares 1,347,318 46
11,100 Eaton Corporation 725,940 25
15,300 Engineered Support Systems, Inc. 818,856 28
14,400 * Gardner Denver, Inc. 568,944 19
15,300 Harsco Corporation 912,033 31
42,600 Honeywell International, Inc. 1,585,146 54
16,200 Knoll, Inc. 270,216 9
18,300 Lockheed Martin Corporation 1,117,398 38
42,800 Masco Corporation 1,483,876 50
27,600 Northrop Grumman Corporation 1,489,848 51
61,300 * Pinnacle Airlines Corporation 651,006 22
18,500 Pitney Bowes, Inc. 834,720 28
15,400 Rockwell Automation, Inc. 872,256 30
41,600 SPX Corporation 1,800,448 61
15,300 United Technologies Corporation 1,555,398 53
- ----------------------------------------------------------------------------------------------------------------------
21,750,462 739
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--8.6%
30,800 Amphenol Corporation - Class "A" 1,140,832 39
4,400 Analog Devices, Inc. 159,016 5
61,100 * Cisco Systems, Inc. 1,093,079 37
42,900 * Electronics for Imaging, Inc. 765,336 26
107,300 * EMC Corporation 1,321,936 45
170,200 * Entrust, Inc. 638,250 22
500 * Fastclick, Inc. 6,000 --
43,076 First Data Corporation 1,693,318 57
61,800 Hewlett-Packard Company 1,355,892 46
53,700 Intel Corporation 1,247,451 42
24,900 Intersil Corporation - Class "A" 431,268 15
15,300 * Intuit, Inc. 669,681 23
40,800 * Lexar Media, Inc. 203,184 7
50,500 * McAfee, Inc. 1,139,280 39
107,600 Microsoft Corporation 2,600,692 88
92,600 Nokia Corporation - Class "A" (ADR) 1,428,818 49
40,300 * palmOne, Inc. 1,022,814 35
59,800 * Paxar Corporation 1,276,132 43
49,400 QUALCOMM, Inc. 1,810,510 61
49,500 * SanDisk Corporation 1,376,100 47
19,800 StarTek, Inc. 332,640 11
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Information Technology (continued)
56,985 * Taiwan Semiconductor Manufacturing Co., Ltd.
(ADR) $483,233 $16
29,300 * Tech Data Corporation 1,085,858 37
73,100 * VERITAS Software Corporation 1,697,382 58
10,800 Xilinx, Inc. 315,684 11
- ----------------------------------------------------------------------------------------------------------------------
25,294,386 859
- ----------------------------------------------------------------------------------------------------------------------
Materials--3.5%
30,800 Calgon Carbon Corporation 263,032 9
20,000 Dow Chemical Company 997,000 34
18,900 Freeport-McMoRan Copper & Gold, Inc. - Class "B" 748,629 25
38,500 Georgia-Pacific Corporation 1,366,365 46
38,200 Lubrizol Corporation 1,552,448 53
43,300 MeadWestvaco Corporation 1,377,806 47
560 Neenah Paper, Inc. 18,827 1
13,800 PPG Industries, Inc. 986,975 33
18,500 Praxair, Inc. 885,410 30
63,800 RPM International, Inc. 1,166,264 39
15,900 Weyerhaeuser Company 1,089,150 37
- ----------------------------------------------------------------------------------------------------------------------
10,451,906 354
- ----------------------------------------------------------------------------------------------------------------------
Other--.6%
23,700 Nasdaq - 100 Index Tracking Stock 866,235 30
7,800 SPDR Trust Series "1" 920,400 31
- ----------------------------------------------------------------------------------------------------------------------
1,786,635 61
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--.6%
42,800 SBC Communications, Inc. 1,013,932 35
23,100 Verizon Communications, Inc. 820,050 28
- ----------------------------------------------------------------------------------------------------------------------
1,833,982 63
- ----------------------------------------------------------------------------------------------------------------------
Utilities--.7%
35,300 Atmos Energy Corporation 953,100 32
23,000 Consolidated Edison, Inc. 970,140 33
- ----------------------------------------------------------------------------------------------------------------------
1,923,240 65
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $158,098,847) 191,320,898 6,493
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS TOTAL RETURN FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS--16.2%
Aerospace/Defense--.2%
$500M Precision Castparts Corp., 5.6%, 2013 $503,202 $17
- ----------------------------------------------------------------------------------------------------------------------
Automotive--.3%
DaimlerChrysler NA Holdings Corp.:
350M 8%, 2010 389,537 13
350M 6.5%, 2013 364,590 13
- ----------------------------------------------------------------------------------------------------------------------
754,127 26
- ----------------------------------------------------------------------------------------------------------------------
Chemicals--.1%
198M Rohm & Haas Co., 7.4%, 2009 219,652 7
- ----------------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--.3%
900M Clorox Co., 6.125%, 2011 962,996 33
- ----------------------------------------------------------------------------------------------------------------------
Financial--2.0%
CIT Group, Inc.:
500M 4.75%, 2010 496,268 17
750M 7.75%, 2012 868,695 30
1,250M ERAC USA Finance Enterprise Co., 7.35%, 2008+ 1,350,434 46
400M Ford Motor Credit Co., 7.75%, 2007 414,350 14
General Motors Acceptance Corp.:
500M 6.125%, 2006 497,864 17
650M 7.75%, 2010 624,933 21
750M Household Finance Corp., 6.5%, 2008 795,581 27
885M SLM Corp., 5%, 2015 860,745 29
- ----------------------------------------------------------------------------------------------------------------------
5,908,870 201
- ----------------------------------------------------------------------------------------------------------------------
Financial Services--1.8%
Bank of America Corp.:
500M 6.5%, 2011 534,259 18
500M 7.4%, 2011 564,343 19
638M Bank United Corp., 8%, 2009 712,853 24
1,000M Lincoln National Corp., 6.5%, 2008 1,062,853 36
725M Manufacturers & Traders Trust Co., 8%, 2010 838,208 28
853M National City Bank of Kentucky, 6.3%, 2011 920,711 31
737M Washington Mutual, Inc., 8.25%, 2010 836,902 29
- ----------------------------------------------------------------------------------------------------------------------
5,470,129 185
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--1.1%
$950M Bottling Group, LLC, Series "B", 4.625%, 2012 $934,605 $32
1,000M Coca-Cola Co., 5.75%, 2011 1,051,662 36
1,030M Coca-Cola Enterprises, Inc., 7.125%, 2009 1,131,491 38
- ----------------------------------------------------------------------------------------------------------------------
3,117,758 106
- ----------------------------------------------------------------------------------------------------------------------
Food/Drug--.9%
600M Delhaize America, Inc., 8.125%, 2011 669,913 23
1,000M Kroger Co., 7.8%, 2007 1,071,150 36
996M Safeway, Inc., 7%, 2007 1,047,654 35
- ----------------------------------------------------------------------------------------------------------------------
2,788,717 94
- ----------------------------------------------------------------------------------------------------------------------
Forest Products/Containers--.7%
1,100M International Paper Co., 6.75%, 2011 1,207,581 41
700M Weyerhaeuser Co., 6.75%, 2012 769,910 26
- ----------------------------------------------------------------------------------------------------------------------
1,977,491 67
- ----------------------------------------------------------------------------------------------------------------------
Gaming/Leisure--.3%
750M MGM Mirage, Inc., 8.5%, 2010 825,000 28
- ----------------------------------------------------------------------------------------------------------------------
Health Care--.6%
1,000M HCA, Inc., 5.25%, 2008 1,003,950 34
800M Wyeth, 6.95%, 2011 878,399 30
- ----------------------------------------------------------------------------------------------------------------------
1,882,349 64
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--.5%
1,455M International Business Machines Corp., 5.4%, 2009 1,505,670 51
- ----------------------------------------------------------------------------------------------------------------------
Manufacturing--.6%
700M Newell Rubbermaid, Inc., 6.75%, 2012 769,069 26
900M United Technologies Corp., 7.125%, 2010 1,007,078 34
- ----------------------------------------------------------------------------------------------------------------------
1,776,147 60
- ----------------------------------------------------------------------------------------------------------------------
Media - Broadcasting--.6%
Comcast Cable Communications, Inc.:
705M 8.375%, 2007 759,772 26
500M 7.125%, 2013 557,117 19
500M Cox Communications, Inc., 5.5%, 2015 484,708 16
- ----------------------------------------------------------------------------------------------------------------------
1,801,597 61
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS TOTAL RETURN FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Media-Diversified--.7%
$750M AOL Time Warner, Inc., 6.75%, 2011 $811,454 $27
500M Cox Enterprises, Inc., 8%, 2007+ 527,241 18
705M Viacom, Inc., 8.625%, 2012 842,698 29
- ----------------------------------------------------------------------------------------------------------------------
2,181,393 74
- ----------------------------------------------------------------------------------------------------------------------
Metals/Mining--.4%
500M Alcoa, Inc., 6%, 2012 533,774 18
500M Thiokol Corp., 6.625%, 2008 529,004 18
- ----------------------------------------------------------------------------------------------------------------------
1,062,778 36
- ----------------------------------------------------------------------------------------------------------------------
Real Estate Investment Trusts--1.4%
910M AvalonBay Communities, Inc., 6.875%, 2007 961,233 33
750M Boston Properties, Inc., 5%, 2015 723,975 25
700M EOP Operating LP, 8.1%, 2010 795,964 27
700M Mack-Cali Realty LP, 7.75%, 2011 792,292 27
800M Simon Property Group LP, 7.375%, 2018 896,920 30
- ----------------------------------------------------------------------------------------------------------------------
4,170,384 142
- ----------------------------------------------------------------------------------------------------------------------
Retail-General Merchandise--.4%
500M Federated Department Stores, Inc., 7.45%, 2017 570,496 20
600M Target Corp., 7.5%, 2010 680,310 23
- ----------------------------------------------------------------------------------------------------------------------
1,250,806 43
- ----------------------------------------------------------------------------------------------------------------------
Telecommunications--.4%
600M New York Telephone Co., 6.125%, 2010 624,416 21
600M SBC Communications, Inc., 6.25%, 2011 637,472 22
- ----------------------------------------------------------------------------------------------------------------------
1,261,888 43
- ----------------------------------------------------------------------------------------------------------------------
Transportation--1.0%
Burlington Northern Santa Fe Corp.:
1,000M 7.875%, 2007 1,066,448 36
250M 6.75%, 2011 274,738 9
400M Canadian National Railway Co., 6.45%, 2006 411,277 14
1,000M Union Pacific Corp., 7.375%, 2009 1,096,849 37
- ----------------------------------------------------------------------------------------------------------------------
2,849,312 96
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities--1.5%
$750M Consumers Energy Co., 6.375%, 2008 $783,668 $27
800M DPL, Inc., 6.875%, 2011 853,975 29
750M Duke Capital Corp., 8%, 2019 891,790 30
750M NiSource Finance Corp., 7.875%, 2010 856,268 29
900M PP&L Capital Funding, Inc., 8.375%, 2007 971,605 33
- ----------------------------------------------------------------------------------------------------------------------
4,357,306 148
- ----------------------------------------------------------------------------------------------------------------------
Waste Management--.4%
1,000M Waste Management, Inc., 6.875%, 2009 1,077,097 37
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $46,626,144) 47,704,669 1,619
- ----------------------------------------------------------------------------------------------------------------------
MORTGAGE-BACKED CERTIFICATES--9.0%
Fannie Mae--3.9%
6,490M 5.5%, 4/1/33 - 10/1/33 6,515,283 221
1,577M 6.5%, 11/1/33 1,644,867 56
3,132M 7%, 3/1/32 - 8/1/32 3,337,077 113
- ----------------------------------------------------------------------------------------------------------------------
11,497,227 390
- ----------------------------------------------------------------------------------------------------------------------
Freddie Mac--3.2%
7,158M 5.5%, 7/1/33 - 2/1/35 7,185,779 244
767M 6%, 9/1/32 786,207 27
1,461M 6.5%, 1/1/34 1,517,210 51
- ----------------------------------------------------------------------------------------------------------------------
9,489,196 322
- ----------------------------------------------------------------------------------------------------------------------
Government National Mortgage Association--1.9%
1,491M 5%, 11/15/34 1,472,983 50
3,014M 5.5%, 4/15/33 - 8/15/33 3,055,648 104
497M 6%, 9/15/34 511,025 17
418M 6.5%, 7/15/28 437,690 15
165M 7%, 8/15/32 174,711 6
- ----------------------------------------------------------------------------------------------------------------------
5,652,057 192
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Mortgage-Backed Certificates (cost $26,684,632) 26,638,480 904
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS TOTAL RETURN FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Principal Invested
Amount For Each
Shares or $10,000 of
Warrants Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--2.8%
$2,000M Jefferson Cnty., AL, Ltd. Oblig. Rev. Bonds,
5%, 2024 $2,035,000 $69
4,500M Massachusetts Bay Trans. Auth. Sales Tax
Rev. Bonds, 5%, 2035 4,595,625 156
1,500M Tobacco Settlement Financing Corp., NJ Rev.
Bonds, 6.75%, 2039 1,576,875 54
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $8,076,074) 8,207,500 279
- ----------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--1.6%
Financials--1.1%
Chubb Corporation:
27,800 7%, 2005 - Series "A" 838,170 28
15,400 7%, 2006 - Series "B" 463,925 16
29,800 Hartford Financial Services Group, Inc., 6%,
2006 - Class "A" 1,884,850 64
- ----------------------------------------------------------------------------------------------------------------------
3,186,945 108
- ----------------------------------------------------------------------------------------------------------------------
Health Care--.1%
5,800 Baxter International, Inc., 7%, 2006 313,200 10
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--.4%
24,200 ALLTEL Corporation, 7.75%, 2005 1,228,150 42
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Convertible Preferred Stock (cost $4,045,842) 4,728,295 160
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS--1.6%
$4,650M Federal Farm Credit Bank, 4.94%, 2012
(cost $4,651,751) 4,609,712 156
- ----------------------------------------------------------------------------------------------------------------------
PASS THROUGH CERTIFICATES--.4%
Transportation
752M Continental Airlines, Inc., 8.388%, 2020 624,287 21
604M NWA Trust, 10.23%, 2012 534,377 18
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Pass Through Certificates (cost $1,399,451) 1,158,664 39
- ----------------------------------------------------------------------------------------------------------------------
WARRANTS--.0%
Information Technology
3,736 * Lucent Technologies, Inc. (expiring 12/10/07) (cost $0) 2,503 --
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--2.8%
Colgate-Palmolive Co.:
$1,700M 2.64%, 4/5/05++ $1,699,500 $58
1,500M 2.74%, 4/14/05++ 1,498,515 51
3,600M New York Times Co., 2.74%, 4/4/05 3,599,177 122
1,400M Paccar Financial Corp., 2.7%, 4/14/05 1,398,634 47
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $8,195,826) 8,195,826 278
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT
AGENCY OBLIGATIONS--.4%
1,200M Tennessee Valley Authority, 2.67%, 4/28/05
(cost $1,197,597) 1,197,597 41
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $258,976,164) 99.7% 293,764,144 9,969
Other Assets, Less Liabilities .3 914,869 31
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $294,679,013 $10,000
======================================================================================================================
* Non-income producing
+ Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 6)
++ Security exempt from registration under Section 4(2) of the Securities Act of 1933 (see Note 6)
Summary of Abbreviations:
ADR American Depositary Receipts
REIT Real Estate Investment Trust
See notes to financial statements
Fund Expenses
FIRST INVESTORS VALUE FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with the costs of
other mutual funds. Please refer to page 3 for a detailed explanation of
the information presented in these examples.
- ---------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(10/1/04) (3/31/05) (10/1/04-3/31/05)*
- ---------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,091.46 $7.40
Hypothetical
(5% annual return before expenses) $1,000.00 $1,017.85 $7.14
- ---------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,085.87 $11.02
Hypothetical
(5% annual return before expenses) $1,000.00 $1,014.36 $10.65
- ---------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.42% for Class A shares and 2.12%
for Class B shares, multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
Portfolio Composition
TOP TEN SECTORS
(BAR CHART: Top Ten Sectors)
Financials 25.8%
Consumer Discretionary 15.3%
Energy 10.1%
Industrials 8.2%
Consumer Staples 7.8%
Materials 7.2%
Health Care 5.8%
Utilities 5.3%
Information Technology 4.8%
Telecommunication Services 4.2%
Portfolio holdings and allocations are subject to change. Percentages are
as of March 31, 2005, and are based on the total value of investments.
Portfolio of Investments
FIRST INVESTORS VALUE FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--88.3%
Consumer Discretionary--14.7%
81,800 Bob Evans Farms,Inc. $1,918,210 $74
60,500 Clear Channel Communications, Inc. 2,085,435 81
47,300 Genuine Parts Company 2,057,077 80
97,100 Hancock Fabrics, Inc. 722,424 28
41,600 Home Depot, Inc. 1,590,784 62
51,300 J.C. Penney Company, Inc. (Holding Co.) 2,663,496 103
39,600 Jones Apparel Group, Inc. 1,326,204 51
24,500 Kenneth Cole Productions, Inc. - Class "A" 713,930 28
70,974 Kimball International, Inc. - Class "B" 1,029,123 40
36,100 Lee Enterprises, Inc. 1,566,740 61
63,700 Leggett & Platt, Inc. 1,839,656 71
19,800 Liberty Corporation 802,890 31
14,200 Magna International, Inc. - Class "A" 949,980 37
44,600 May Department Stores Company 1,651,092 64
102,800 McDonald's Corporation 3,201,192 124
95,700 Natuzzi SpA (ADR) 994,323 39
53,000 New York Times Company - Class "A" 1,938,740 75
35,300 Newell Rubbermaid, Inc. 774,482 30
36,000 OshKosh B'Gosh, Inc. - Class "A" 1,098,000 43
28,200 Outback Steakhouse, Inc. 1,291,278 50
162,900 Pearson PLC (ADR) 1,997,154 77
55,100 Talbots, Inc. 1,762,098 68
29,900 Tupperware Corporation 608,764 24
110,800 Walt Disney Company 3,183,284 124
- ----------------------------------------------------------------------------------------------------------------------
37,766,356 1,465
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--7.5%
37,200 Brown-Forman Corporation - Class "B" 2,036,700 79
62,100 Coca-Cola Company 2,587,707 101
73,800 ConAgra Foods, Inc. 1,994,076 77
19,541 * Del Monte Foods Company 212,020 8
42,200 Diageo PLC (ADR) 2,401,180 93
23,900 Fomento Economico Mexicano,
SA de CV (ADR) 1,279,845 50
44,200 H.J. Heinz Company 1,628,328 63
28,300 Kimberly-Clark Corporation 1,860,159 72
52,500 Ruddick Corporation 1,215,375 47
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS VALUE FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples (continued)
58,800 Sara Lee Corporation $1,303,008 $51
58,200 Tasty Baking Company 488,298 19
46,600 UST, Inc. 2,409,220 93
- ----------------------------------------------------------------------------------------------------------------------
19,415,916 753
- ----------------------------------------------------------------------------------------------------------------------
Energy--9.7%
27,600 Anadarko Petroleum Corporation 2,100,360 82
39,000 BP PLC (ADR) 2,433,600 94
36,400 ChevronTexaco Corporation 2,122,484 82
29,500 ConocoPhillips 3,181,280 124
47,900 Diamond Offshore Drilling, Inc. 2,390,210 93
36,600 Kerr-McGee Corporation 2,866,878 111
55,700 Marathon Oil Corporation 2,613,444 101
40,200 Royal Dutch Petroleum Company - NY Shares
(ADR) 2,413,608 94
52,600 Tidewater, Inc. 2,044,036 79
46,500 Unocal Corporation 2,868,585 111
- ----------------------------------------------------------------------------------------------------------------------
25,034,485 971
- ----------------------------------------------------------------------------------------------------------------------
Financials--23.2%
46,000 A.G. Edwards, Inc. 2,060,800 80
14,600 ACE, Ltd. 602,542 23
52,600 Allstate Corporation 2,843,556 110
62,400 AmSouth Bancorporation 1,619,280 63
71,900 Amvescap PLC (ADR) 911,692 35
84,500 Aon Corporation 1,929,980 75
97,500 Bank Mutual Corporation 1,152,450 45
56,364 Bank of America Corporation 2,485,652 96
80,000 Bank of New York Company, Inc. 2,324,000 90
75,700 Brascan Corporation - Class "A" 2,857,675 111
47,855 Cincinnati Financial Corporation 2,086,957 81
34,200 Comerica, Inc. 1,883,736 73
38,500 CRT Properties, Inc. (REIT) 838,530 33
56,900 Eagle Hospitality Properties Trust, Inc. 510,393 20
6,000 Endurance Specialty Holdings, Ltd. 227,040 9
34,200 Erie Indemnity Company - Class "A" 1,782,504 69
30,300 FBL Financial Group, Inc. - Class "A" 848,400 33
30,600 Jefferson-Pilot Corporation 1,500,930 58
72,500 JPMorgan Chase & Company 2,508,500 97
56,400 KeyCorp 1,830,180 71
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Financials (continued)
30,700 Lincoln National Corporation $1,385,798 $54
43,400 Merrill Lynch & Company, Inc. 2,456,440 95
37,700 Montpelier Re Holdings, Ltd. 1,325,155 51
44,400 Morgan Stanley 2,541,900 99
96,300 NewAlliance Bancshares, Inc. 1,348,200 52
30,500 North Fork Bancorporation, Inc. 846,070 33
21,800 One Liberty Properties, Inc. (REIT) 406,788 16
50,900 Plum Creek Timber Company, Inc. (REIT) 1,817,130 70
32,400 PNC Financial Services Group 1,667,952 65
1,900 Preferred Bank 75,810 3
51,300 Protective Life Corporation 2,016,090 78
40,300 PXRE Group, Ltd. 1,033,695 40
77,100 Regions Financial Corporation 2,498,040 97
63,800 Sky Financial Group, Inc. 1,711,116 66
25,500 SunTrust Banks, Inc. 1,837,785 71
20,300 T. Rowe Price Group, Inc. 1,205,414 47
23,079 TD Banknorth, Inc. 720,988 28
36,700 Wells Fargo & Company 2,194,660 85
- ----------------------------------------------------------------------------------------------------------------------
59,893,828 2,322
- ----------------------------------------------------------------------------------------------------------------------
Health Care--5.5%
52,400 Abbott Laboratories 2,442,888 95
50,500 Bristol-Myers Squibb Company 1,285,730 50
39,100 GlaxoSmithKline PLC (ADR) 1,795,472 69
36,900 Johnson & Johnson 2,478,204 96
33,200 Novartis AG 1,553,096 60
84,500 Pfizer, Inc. 2,219,815 86
82,100 Schering-Plough Corporation 1,490,115 58
8,034 * WellPoint, Inc. 1,007,062 39
- ----------------------------------------------------------------------------------------------------------------------
14,272,382 553
- ----------------------------------------------------------------------------------------------------------------------
Industrials--7.9%
23,000 A.O. Smith Corporation 664,010 26
29,800 Adesa, Inc. 696,128 27
2,600 Alexander & Baldwin, Inc. 107,120 4
34,800 Baldor Electric Company 898,188 35
33,500 Dover Corporation 1,265,965 49
53,700 Federal Signal Corporation 814,629 32
21,300 General Dynamics Corporation 2,280,165 88
62,600 Honeywell International, Inc. 2,329,346 90
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS VALUE FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Industrials (continued)
67,200 Masco Corporation $2,329,824 $90
63,300 Norfolk Southern Corporation 2,345,265 91
69,800 Pall Corporation 1,892,976 73
47,700 Pitney Bowes, Inc. 2,152,224 84
16,300 SPX Corporation 705,464 28
28,600 Stewart & Stevenson Services, Inc. 654,654 25
21,700 Teleflex, Inc. 1,110,606 43
- ----------------------------------------------------------------------------------------------------------------------
20,246,564 785
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--4.6%
51,300 Automatic Data Processing, Inc. 2,305,935 89
68,900 AVX Corporation 844,025 33
6,381 * Freescale Semiconductor, Inc. 110,072 4
95,000 Hewlett-Packard Company 2,084,300 81
41,200 Intersil Corporation - Class "A" 713,584 28
60,900 Methode Electronics, Inc. - Class "A" 737,499 29
57,800 Motorola, Inc. 865,266 33
84,000 Nokia Corporation - Class "A" (ADR) 1,296,120 50
28,200 * palmOne, Inc. 715,716 28
26,700 Paychex, Inc. 876,294 34
77,100 * Planar Systems, Inc. 695,442 27
46,700 Woodhead Industries, Inc. 635,120 25
- ----------------------------------------------------------------------------------------------------------------------
11,879,373 461
- ----------------------------------------------------------------------------------------------------------------------
Materials--6.9%
31,500 Air Products & Chemicals, Inc. 1,993,635 77
7,800 Albemarle Corporation 283,608 11
46,800 Alcoa, Inc. 1,422,252 55
56,600 Compass Minerals International, Inc. 1,440,470 56
49,500 Du Pont (E.I.) de Nemours & Company 2,536,380 98
75,900 Glatfelter 1,119,525 44
42,700 Great Lakes Chemical Corporation 1,371,524 53
62,300 Lubrizol Corporation 2,531,872 98
21,000 MeadWestvaco Corporation 668,220 26
42,130 Myers Industries, Inc. 594,454 23
857 Neenah Paper, Inc. 28,812 1
75,900 Sonoco Products Company 2,189,715 85
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Materials (continued)
18,200 Vulcan Materials Company $1,034,306 $40
8,600 Weyerhaeuser Company 589,100 23
- ----------------------------------------------------------------------------------------------------------------------
17,803,873 690
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--3.6%
62,300 BellSouth Corporation 1,637,867 63
60,400 CT Communications, Inc. 636,012 25
42,600 D&E Communications, Inc. 388,938 15
60,100 Nippon Telegraph and Telephone Corporation
(ADR) 1,313,185 51
67,400 SBC Communications, Inc. 1,596,706 62
2,600 SureWest Communications 59,956 2
22,100 Telephone & Data Systems, Inc. 1,803,360 70
48,528 Verizon Communications, Inc. 1,722,744 67
- ----------------------------------------------------------------------------------------------------------------------
9,158,768 355
- ----------------------------------------------------------------------------------------------------------------------
Utilities--4.7%
34,550 American States Water Company 874,115 34
39,200 KeySpan Corporation 1,527,624 59
44,200 MDU Resources Group, Inc. 1,220,804 47
86,900 NiSource, Inc. 1,980,451 77
37,700 Northwest Natural Gas Company 1,363,609 53
40,300 ONEOK, Inc. 1,242,046 48
8,000 South Jersey Industries, Inc. 451,200 17
51,200 Southwest Gas Corporation 1,236,992 48
48,700 United Utilities PLC (ADR) 1,176,105 46
39,700 Vectren Corporation 1,057,608 41
- ----------------------------------------------------------------------------------------------------------------------
12,130,554 470
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $174,323,686) 227,602,099 8,825
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS VALUE FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--1.7%
Financials--1.5%
49,200 Chubb Corp., 7%, 2005 - Series "A" $1,483,380 $57
21,600 Lehman Brothers Holdings, Inc., 6.25%,
2007 - Series "GIS" 575,100 22
9,300 State Street Corp., 6.75%, 2006 1,849,333 72
- ----------------------------------------------------------------------------------------------------------------------
3,907,813 151
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--.2%
10,900 ALLTEL Corp., 7.75%, 2005 553,175 21
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Convertible Preferred Stocks (cost $4,133,635) 4,460,988 172
- ----------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--.5%
Telecommunication Services--.3%
27,300 Verizon South, Inc., 7%, 2041 - Series "F" 695,058 27
- ----------------------------------------------------------------------------------------------------------------------
Utilities--.2%
22,300 Entergy Louisiana, Inc., 7.6%, 2032 582,030 22
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Preferred Stocks (cost $1,253,436) 1,277,088 49
- ----------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS--.2%
Utilities
$500M Union Electric Co., 6.75%, 2008 (cost $499,383) 531,098 20
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--5.3%
9,500M Colgate-Palmolive Co., 2.74%, 4/14/05 9,490,597 368
4,200M New York Times Co., 2.74%, 4/4/05 4,199,041 163
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $13,689,638) 13,689,638 531
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $193,899,778) 96.0% 247,560,911 9,597
Other Assets, Less Liabilities 4.0 10,392,901 403
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $257,953,812 $10,000
======================================================================================================================
* Non-income producing
Summary of abbreviations:
ADR American Depositary Receipts
REIT Real Estate Investment Trust
See notes to financial statements
Fund Expenses
FIRST INVESTORS BLUE CHIP FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with the costs of
other mutual funds. Please refer to page 3 for a detailed explanation of
the information presented in these examples.
- ---------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(10/1/04) (3/31/05) (10/1/04-3/31/05)*
- ---------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,070.64 $7.43
Hypothetical
(5% annual return before expenses) $1,000.00 $1,017.75 $7.24
- ---------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,067.01 $11.03
Hypothetical
(5% annual return before expenses) $1,000.00 $1,014.26 $10.75
- ---------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.44% for Class A shares and 2.14%
for Class B shares, multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period). Expenses paid during the period are net of
expenses waived.
Portfolio Composition
TOP TEN SECTORS
(BAR CHART: Top Ten Sectors)
Financials 18.1%
Information Technology 16.5%
Health Care 13.5%
Industrials 13.1%
Consumer Discretionary 12.1%
Consumer Staples 9.6%
Energy 8.4%
Materials 2.8%
Telecommunication Services 2.5%
Utilities 1.6%
Portfolio holdings and allocations are subject to change. Percentages are
as of March 31, 2005, and are based on the total value of investments.
Portfolio of Investments
FIRST INVESTORS BLUE CHIP FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--98.6%
Consumer Discretionary--12.2%
22,000 Carnival Corporation $1,139,820 $24
71,996 * Comcast Corporation - Class "A" 2,432,025 50
48,900 * Comcast Corporation - Special Class "A" 1,633,260 34
55,300 Eastman Kodak Company 1,800,015 37
31,500 * eBay, Inc. 1,173,690 24
99,200 Gap, Inc. 2,166,528 45
165,800 Hilton Hotels Corporation 3,705,630 77
153,100 Home Depot, Inc. 5,854,544 122
75,100 * Kohl's Corporation 3,877,413 81
48,700 Lowe's Companies, Inc. 2,780,283 58
97,900 McDonald's Corporation 3,048,606 63
158,600 News Corporation - Class "A" 2,683,512 56
36,800 NIKE, Inc. - Class "B" 3,065,808 64
227,200 * Office Depot, Inc. 5,039,296 105
73,800 Target Corporation 3,691,476 77
258,300 * Time Warner, Inc. 4,533,165 94
125,200 Viacom, Inc. - Class "B" 4,360,716 91
137,000 Walt Disney Company 3,936,010 82
29,600 Yum! Brands, Inc. 1,533,576 32
- ----------------------------------------------------------------------------------------------------------------------
58,455,373 1,216
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--9.6%
77,400 Altria Group, Inc. 5,061,186 105
142,900 Coca-Cola Company 5,954,643 124
66,300 Corn Products International, Inc. 1,723,137 36
36,800 Costco Wholesale Corporation 1,625,824 34
47,800 CVS Corporation 2,515,236 52
29,200 General Mills, Inc. 1,435,180 30
18,400 Gillette Company 928,832 19
25,800 Hershey Foods Corporation 1,559,868 33
52,100 Kimberly-Clark Corporation 3,424,533 71
104,100 PepsiCo, Inc. 5,520,423 115
112,100 Procter & Gamble Company 5,941,300 124
77,700 Walgreen Company 3,451,434 72
139,100 Wal-Mart Stores, Inc. 6,970,301 145
- ----------------------------------------------------------------------------------------------------------------------
46,111,897 960
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Energy--8.4%
184,100 Chesapeake Energy Corporation $4,039,154 $84
172,200 ChevronTexaco Corporation 10,040,982 209
63,000 Devon Energy Corporation 3,008,250 63
10,700 EnCana Corporation 753,494 16
204,300 ExxonMobil Corporation 12,176,280 253
143,800 * Grant Prideco, Inc. 3,474,208 72
42,100 Schlumberger, Ltd. 2,967,208 62
55,100 * Transocean, Inc. 2,835,446 59
14,600 Valero Energy Corporation 1,069,742 22
- ----------------------------------------------------------------------------------------------------------------------
40,364,764 840
- ----------------------------------------------------------------------------------------------------------------------
Financials--18.2%
48,100 ACE, Ltd. 1,985,087 41
59,000 Allstate Corporation 3,189,540 66
84,900 American Express Company 4,361,313 91
130,300 American International Group, Inc. 7,219,923 150
186,166 Bank of America Corporation 8,209,921 171
117,700 Bank of New York Company, Inc. 3,419,185 71
1,150 * Berkshire Hathaway, Inc. - Class "B" 3,284,400 68
44,200 Capital One Financial Corporation 3,304,834 69
37,500 Chubb Corporation 2,972,625 62
243,100 Citigroup, Inc. 10,924,914 227
55,200 Compass Bancshares, Inc. 2,506,080 52
28,600 Fannie Mae 1,557,270 32
40,500 Freddie Mac 2,559,600 53
35,300 Goldman Sachs Group, Inc. 3,882,647 81
167,268 JPMorgan Chase & Company 5,787,473 121
40,500 Marsh & McLennan Companies, Inc. 1,232,010 26
52,300 Merrill Lynch & Company, Inc. 2,960,180 62
66,800 Morgan Stanley 3,824,300 80
158,600 New York Community Bancorp, Inc. 2,880,176 60
173,200 UnumProvident Corporation 2,947,864 61
70,200 Washington Mutual, Inc. 2,772,900 58
79,800 Wells Fargo & Company 4,772,040 99
18,400 Willis Group Holdings, Ltd. 678,408 14
- ----------------------------------------------------------------------------------------------------------------------
87,232,690 1,815
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS BLUE CHIP FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care--13.6%
93,500 Abbott Laboratories $4,358,970 $91
33,800 Aetna, Inc. 2,533,310 53
83,200 * Amgen, Inc. 4,843,072 101
103,100 * Boston Scientific Corporation 3,019,799 63
173,100 Bristol-Myers Squibb Company 4,407,126 92
14,800 Cooper Companies, Inc. 1,078,920 22
38,500 * Coventry Health Care, Inc. 2,623,390 55
22,200 Guidant Corporation 1,640,580 34
41,400 * Haemonetics Corporation 1,745,424 36
157,000 Johnson & Johnson 10,544,120 219
80,700 Medtronic, Inc. 4,111,665 86
69,600 Merck & Company, Inc. 2,252,952 47
97,800 Novartis AG 4,575,084 95
352,260 Pfizer, Inc. 9,253,870 193
36,800 Teva Pharmaceutical Industries, Ltd. (ADR) 1,140,800 24
62,700 * Triad Hospitals, Inc. 3,141,270 65
40,400 UnitedHealth Group, Inc. 3,853,352 80
- ----------------------------------------------------------------------------------------------------------------------
65,123,704 1,356
- ----------------------------------------------------------------------------------------------------------------------
Industrials--13.2%
43,800 3M Company 3,753,222 78
44,200 Boeing Company 2,583,932 54
48,000 Caterpillar, Inc. 4,389,120 91
129,600 Cendant Corporation 2,661,984 56
44,200 Cintas Corporation 1,825,902 38
38,100 Emerson Electric Company 2,473,833 52
401,600 General Electric Company 14,481,696 301
55,300 Honeywell International, Inc. 2,057,713 43
36,100 ITT Industries, Inc. 3,257,664 68
73,700 Joy Global, Inc. 2,583,922 54
59,200 Lockheed Martin Corporation 3,614,752 75
73,700 Masco Corporation 2,555,179 53
42,800 Northrop Grumman Corporation 2,310,344 48
139,200 Tyco International, Ltd. 4,704,960 98
36,800 Union Pacific Corporation 2,564,960 53
37,400 United Parcel Service, Inc. - Class "B" 2,720,476 57
47,400 United Technologies Corporation 4,818,684 100
- ----------------------------------------------------------------------------------------------------------------------
63,358,343 1,319
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--16.6%
84,700 * Amdocs, Ltd. $2,405,480 $50
44,200 * Apple Computer, Inc. 1,841,814 38
147,400 * ASML Holding NV - NY Shares 2,471,898 52
245,800 * BEA Systems, Inc. 1,959,026 41
305,600 * Cisco Systems, Inc. 5,467,184 114
121,500 * Corning, Inc. 1,352,295 28
54,800 * Cypress Semiconductor Corporation 690,480 14
119,100 * Dell, Inc. 4,575,822 95
353,400 * EMC Corporation 4,353,888 91
81,000 First Data Corporation 3,184,110 66
55,100 Hewlett-Packard Company 1,208,894 25
320,200 Intel Corporation 7,438,246 155
73,900 International Business Machines Corporation 6,752,982 141
736,200 * Lucent Technologies, Inc. 2,024,550 42
36,800 * Marvell Technology Group, Ltd. 1,410,912 29
505,300 Microsoft Corporation 12,213,101 254
136,200 Motorola, Inc. 2,038,914 42
110,500 National Semiconductor Corporation 2,277,405 47
171,000 Nokia Corporation - Class "A" (ADR) 2,638,530 55
40,500 QUALCOMM, Inc. 1,484,325 31
92,000 * SanDisk Corporation 2,557,600 53
10,100 * Sigmatel, Inc. 378,043 8
114,100 * Sybase, Inc. 2,106,286 44
109,900 Texas Instruments, Inc. 2,801,351 58
138,400 * Veritas Software Corporation 3,213,648 67
55,300 * Xerox Corporation 837,795 18
- ----------------------------------------------------------------------------------------------------------------------
79,684,579 1,658
- ----------------------------------------------------------------------------------------------------------------------
Materials--2.8%
59,000 Alcoa, Inc. 1,793,010 37
51,700 Cemex SA de CV (ADR) 1,874,125 39
73,700 Dow Chemical Company 3,673,945 76
40,400 DuPont (E.I.) de Nemours & Company 2,070,096 43
66,200 International Paper Company 2,435,498 51
18,300 Newmont Mining Corporation 773,175 16
14,800 Peabody Energy Corporation 686,128 14
3,600 Phelps Dodge Corporation 366,228 8
- ----------------------------------------------------------------------------------------------------------------------
13,672,205 284
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS BLUE CHIP FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--2.4%
119,500 * Nextel Communications, Inc. - Class "A" $3,396,190 $70
135,800 SBC Communications, Inc. 3,217,102 67
54,900 Sprint Corporation 1,248,975 26
110,900 Verizon Communications, Inc. 3,936,950 82
- ----------------------------------------------------------------------------------------------------------------------
11,799,217 245
- ----------------------------------------------------------------------------------------------------------------------
Utilities--1.6%
172,700 Duke Energy Corporation 4,837,327 101
98,400 ONEOK, Inc. 3,032,688 63
- ----------------------------------------------------------------------------------------------------------------------
7,870,015 164
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $370,807,466) 473,672,787 9,857
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--1.8%
Colgate-Palmolive Co.:
$1,000M 2.64%, 4/5/05+ 999,706 21
2,200M 2.74%, 4/14/05+ 2,197,823 46
5,600M New York Times Co., 2.74%, 4/4/05 5,598,720 116
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $8,796,249) 8,796,249 183
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $379,603,715) 100.4% 482,469,036 10,040
Excess of Liabilities Over Other Assets (.4) (1,940,209) (40)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $480,528,827 $10,000
======================================================================================================================
* Non-income producing
+ Security exempt from registration under Section 4(2) of the Securities Act of 1933 (see Note 6)
Summary of Abbreviations:
ADR American Depositary Receipts
See notes to financial statements
Fund Expenses
FIRST INVESTORS GROWTH & INCOME FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with the costs of
other mutual funds. Please refer to page 3 for a detailed explanation of
the information presented in these examples.
- ---------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(10/1/04) (3/31/05) (10/1/04-3/31/05)*
- ---------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,080.47 $7.05
Hypothetical
(5% annual return before expenses) $1,000.00 $1,018.15 $6.84
- ---------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,076.49 $10.66
Hypothetical
(5% annual return before expenses) $1,000.00 $1,014.66 $10.35
- ---------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.36% for Class A shares and 2.06%
for Class B shares, multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
Portfolio Composition
TOP TEN SECTORS
Financials 22.9%
Consumer Discretionary 16.0%
Information Technology 12.9%
Health Care 12.8%
Industrials 11.1%
Consumer Staples 7.9%
Energy 7.7%
Materials 5.2%
Telecommunication Services 1.6%
Utilities 1.0%
Portfolio holdings and allocations are subject to change. Percentages are
as of March 31, 2005, and are based on the total value of investments.
Portfolio of Investments
FIRST INVESTORS GROWTH & INCOME FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--97.7%
Consumer Discretionary--16.0%
212,500 Blockbuster, Inc. - Class "A" $1,876,375 $29
226,500 Claire's Stores, Inc. 5,218,560 82
50,000 Clear Channel Communications, Inc. 1,723,500 27
189,702 * Cost Plus, Inc. 5,099,190 80
188,300 Domino's Pizza, Inc. 3,519,327 55
112,100 * GameStop Corporation - Class "A" 2,484,136 39
50,000 Genuine Parts Company 2,174,500 34
70,000 Harley-Davidson, Inc. 4,043,200 63
230,100 * Hollywood Entertainment Corporation 3,030,417 48
100,000 Home Depot, Inc. 3,824,000 60
75,000 J.C. Penney Company, Inc. (Holding Co.) 3,894,000 61
100,000 Kenneth Cole Productions, Inc. - Class "A" 2,914,000 46
60,000 Lear Corporation 2,661,600 42
150,000 Leggett & Platt, Inc. 4,332,000 68
210,000 McDonald's Corporation 6,539,400 103
175,000 Movado Group, Inc. 3,237,500 51
90,000 Neiman Marcus Group, Inc. - Class "A" 8,235,900 129
10,000 Neiman Marcus Group, Inc. - Class "B" 902,500 14
100,000 * Netflix, Inc. 1,085,000 17
305,300 * Office Depot, Inc. 6,771,554 106
203,400 Orient-Express Hotels, Ltd. 5,308,740 83
75,000 Oxford Industries, Inc. 2,744,250 43
120,000 Polo Ralph Lauren Corporation - Class "A" 4,656,000 73
100,000 RadioShack Corporation 2,450,000 38
50,000 Ross Stores, Inc. 1,457,000 23
65,000 Sherwin-Williams Company 2,859,350 45
140,000 * Steiner Leisure Ltd. 4,576,600 72
125,000 Viacom, Inc. - Class "B" 4,353,750 68
- ----------------------------------------------------------------------------------------------------------------------
101,972,349 1,599
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--7.9%
100,000 Altria Group, Inc. 6,539,000 103
45,000 Bunge, Ltd. 2,424,600 38
50,000 Coca-Cola Company 2,083,500 33
250,000 * Herbalife, Ltd. 3,810,000 60
113,300 Hormel Foods Corporation 3,524,763 55
62,500 Kimberly-Clark Corporation 4,108,125 64
400,000 Nu Skin Enterprises, Inc. - Class "A" 9,004,000 141
50,000 PepsiCo, Inc. 2,651,500 42
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples (continued)
75,000 Procter & Gamble Company $3,975,000 $62
112,000 * Smithfield Foods, Inc. 3,533,600 55
82,091 Tootsie Roll Industries, Inc. 2,462,730 39
75,000 Wal-Mart Stores, Inc. 3,758,250 59
75,700 WD-40 Company 2,459,493 39
- ----------------------------------------------------------------------------------------------------------------------
50,334,561 790
- ----------------------------------------------------------------------------------------------------------------------
Energy--7.8%
65,000 Anadarko Petroleum Corporation 4,946,500 77
255,000 Chesapeake Energy Corporation 5,594,700 88
40,000 ConocoPhillips 4,313,600 68
115,000 ExxonMobil Corporation 6,854,000 107
80,000 Noble Corporation 4,496,800 71
150,000 Suncor Energy, Inc. 6,031,500 95
100,000 * Swift Energy Company 2,844,000 45
120,000 * Transocean, Inc. 6,175,200 97
55,000 Unocal Corporation 3,392,950 53
145,000 XTO Energy, Inc. 4,761,800 75
- ----------------------------------------------------------------------------------------------------------------------
49,411,050 776
- ----------------------------------------------------------------------------------------------------------------------
Financials--21.3%
50,000 American Express Company 2,568,500 40
80,000 American International Group, Inc. 4,432,800 70
197,718 Bank of America Corporation 8,719,364 137
35,000 Bear Stearns Companies, Inc. 3,496,500 55
150,000 Citigroup, Inc. 6,741,000 106
200,000 Colonial BancGroup, Inc. 4,104,000 64
100,000 Comerica, Inc. 5,508,000 86
225,000 Doral Financial Corporation 4,925,250 77
129,200 Endurance Specialty Holdings, Ltd. 4,888,928 77
50,000 Fannie Mae 2,722,500 43
120,000 Independence Community Bank Corporation 4,680,000 73
155,000 JPMorgan Chase & Company 5,363,000 84
57,500 Lehman Brothers Holdings, Inc. 5,414,200 85
170,000 MBNA Corporation 4,173,500 65
105,000 Merrill Lynch & Company, Inc. 5,943,000 93
190,000 Montpelier Re Holdings, Ltd. 6,678,500 105
90,000 Morgan Stanley 5,152,500 81
90,000 National City Corporation 3,015,000 47
180,000 New York Community Bancorp, Inc. 3,268,800 51
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS GROWTH & INCOME FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Financials (continued)
225,000 NewAlliance Bancshares, Inc. $3,150,000 $49
225,000 North Fork Bancorporation, Inc. 6,241,500 98
75,000 Plum Creek Timber Company, Inc. (REIT) 2,677,500 42
106,105 Safeco Corporation 5,168,374 81
50,000 South Financial Group, Inc. 1,527,000 24
200,000 Sovereign Bancorp, Inc. 4,432,000 70
170,000 U.S. Bancorp 4,899,400 77
67,000 U.S.B. Holding Co., Inc. 1,486,730 23
100,000 Wachovia Corporation 5,091,000 80
125,000 Washington Mutual, Inc. 4,937,500 78
70,000 Wells Fargo & Company 4,186,000 66
- ----------------------------------------------------------------------------------------------------------------------
135,592,346 2,127
- ----------------------------------------------------------------------------------------------------------------------
Health Care--12.6%
160,000 Abbott Laboratories 7,459,200 117
60,000 Aetna, Inc. 4,497,000 71
46,700 * Amgen, Inc. 2,718,407 43
300,000 * Boston Scientific Corporation 8,787,000 138
30,000 Eli Lilly & Company 1,563,000 24
65,000 * Forest Laboratories, Inc. 2,401,750 38
20,000 * Genentech, Inc. 1,132,200 18
65,000 Guidant Corporation 4,803,500 75
100,000 Johnson & Johnson 6,716,000 105
52,800 * Laboratory Corporation of America Holdings 2,544,960 40
50,000 Medtronic, Inc. 2,547,500 40
80,000 Merck & Company, Inc. 2,589,600 40
330,000 Pfizer, Inc. 8,669,100 136
145,000 * Priority Healthcare Corporation 3,136,350 49
120,000 * Thermo Electron Corporation 3,034,800 48
100,000 * Waters Corporation 3,579,000 56
75,000 * Wellpoint, Inc. 9,401,250 147
120,000 Wyeth 5,061,600 79
- ----------------------------------------------------------------------------------------------------------------------
80,642,217 1,264
- ----------------------------------------------------------------------------------------------------------------------
Industrials--11.1%
52,000 3M Company 4,455,880 70
205,000 * AGCO Corporation 3,741,250 59
50,400 Alexander & Baldwin, Inc. 2,076,480 33
100,000 Briggs & Stratton Corporation 3,641,000 57
30,000 Caterpillar, Inc. 2,743,200 43
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Industrials (continued)
100,000 Cendant Corporation $2,054,000 $32
100,200 Chicago Bridge & Iron Company NV - NY Shares 4,411,806 69
36,000 Eaton Corporation 2,354,400 37
50,000 Engineered Support Systems, Inc. 2,676,000 42
50,000 * Gardner Denver, Inc. 1,975,500 31
50,000 Harsco Corporation 2,980,500 47
140,000 Honeywell International, Inc. 5,209,400 82
53,700 Knoll, Inc. 895,716 14
60,000 Lockheed Martin Corporation 3,663,600 57
140,000 Masco Corporation 4,853,800 76
90,000 Northrop Grumman Corporation 4,858,200 76
200,000 * Pinnacle Airlines Corporation 2,124,000 33
60,000 Pitney Bowes, Inc. 2,707,200 43
50,000 Rockwell Automation, Inc. 2,832,000 44
130,000 SPX Corporation 5,626,400 88
50,000 United Technologies Corporation 5,083,000 80
- ----------------------------------------------------------------------------------------------------------------------
70,963,332 1,113
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--12.9%
100,000 Amphenol Corporation - Class "A" 3,704,000 58
15,000 Analog Devices, Inc. 542,100 9
200,000 * Cisco Systems, Inc. 3,578,000 56
135,000 * Electronics for Imaging, Inc. 2,408,400 38
350,000 * EMC Corporation 4,312,000 68
581,600 * Entrust, Inc. 2,181,000 34
1,500 * Fastclick, Inc. 18,000 --
140,000 First Data Corporation 5,503,400 86
200,000 Hewlett-Packard Company 4,388,000 69
175,000 Intel Corporation 4,065,250 64
80,000 Intersil Corporation - Class "A" 1,385,600 22
50,000 * Intuit, Inc. 2,188,500 34
127,100 * Lexar Media, Inc. 632,958 10
165,000 * McAfee, Inc. 3,722,400 58
350,000 Microsoft Corporation 8,459,500 133
300,000 Nokia Corporation - Class "A" (ADR) 4,629,000 73
132,000 * palmOne, Inc. 3,350,160 53
195,000 * Paxar Corporation 4,161,300 65
160,000 QUALCOMM, Inc. 5,864,000 92
160,000 * SanDisk Corporation 4,448,000 70
65,000 StarTek, Inc. 1,092,000 17
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS GROWTH & INCOME FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Information Technology (continued)
184,820 Taiwan Semiconductor Manufacturing Co., Ltd.
(ADR) $1,567,273 $24
95,000 * Tech Data Corporation 3,520,700 55
236,900 * VERITAS Software Corporation 5,500,818 86
35,000 Xilinx, Inc. 1,023,050 16
- ----------------------------------------------------------------------------------------------------------------------
82,245,409 1,290
- ----------------------------------------------------------------------------------------------------------------------
Materials--5.3%
100,000 Calgon Carbon Corporation 854,000 13
65,000 Dow Chemical Company 3,240,250 51
60,000 Freeport-McMoRan Copper &
Gold, Inc. - Class "B" 2,376,600 37
125,000 Georgia-Pacific Corporation 4,436,250 70
122,100 Lubrizol Corporation 4,962,144 78
140,000 MeadWestvaco Corporation 4,454,800 70
1,893 Neenah Paper, Inc. 63,643 1
45,000 PPG Industries, Inc. 3,218,400 50
60,000 Praxair, Inc. 2,871,600 45
207,000 RPM International, Inc. 3,783,960 59
50,000 Weyerhaeuser Company 3,425,000 54
- ----------------------------------------------------------------------------------------------------------------------
33,686,647 528
- ----------------------------------------------------------------------------------------------------------------------
Other--.9%
75,000 Nasdaq - 100 Index Tracking Stock 2,741,250 43
25,000 SPDR Trust - Series "1" 2,950,000 46
- ----------------------------------------------------------------------------------------------------------------------
5,691,250 89
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--.9%
140,000 SBC Communications, Inc. 3,316,600 52
75,000 Verizon Communications, Inc. 2,662,500 42
- ----------------------------------------------------------------------------------------------------------------------
5,979,100 94
- ----------------------------------------------------------------------------------------------------------------------
Utilities--1.0%
115,400 Atmos Energy Corporation 3,115,800 49
75,000 Consolidated Edison, Inc. 3,163,500 50
- ----------------------------------------------------------------------------------------------------------------------
6,279,300 99
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $505,167,569) 622,797,561 9,769
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Shares or $10,000 of
Warrants Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--2.4%
Financials--1.6%
Chubb Corporation
90,800 7%, 2005 - Series "A" $2,737,620 $43
50,000 7%, 2006 - Series "B" 1,506,250 23
97,000 Hartford Financial Services Group, Inc.,
6%, 2006 - Class "A" 6,135,250 96
- ----------------------------------------------------------------------------------------------------------------------
10,379,120 162
- ----------------------------------------------------------------------------------------------------------------------
Health Care--.1%
16,000 Baxter International, Inc., 7%, 2006 864,000 13
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--.7%
80,000 ALLTEL Corporation, 7.75%, 2005 4,060,000 65
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Convertible Preferred Stocks (cost $12,653,192) 15,303,120 240
- ----------------------------------------------------------------------------------------------------------------------
WARRANTS--.0%
Information Technology
23,179 * Lucent Technologies, Inc.
(expiring 12/10/07) (cost $0) 15,530 --
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $517,820,761) 100.1% 638,116,211 10,009
Excess of Liabilities Over Other Assets (.1) (587,508) (9)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $637,528,703 $10,000
======================================================================================================================
* Non-income producing
Summary of abbreviations:
ADR American Depositary Receipts
REIT Real Estate Investment Trust
See notes to financial statements
Fund Expenses
FIRST INVESTORS ALL-CAP GROWTH FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with the costs of
other mutual funds. Please refer to page 3 for a detailed explanation of
the information presented in these examples.
- ---------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(10/1/04) (3/31/05) (10/1/04-3/31/05)*
- ---------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,029.49 $7.89
Hypothetical
(5% annual return before expenses) $1,000.00 $1,017.15 $7.85
- ---------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,026.35 $11.42
Hypothetical
(5% annual return before expenses) $1,000.00 $1,013.66 $11.35
- ---------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.56% for Class A
shares and 2.26% for Class B shares, multiplied by the average account
value over the period, multiplied by 182/365 (to reflect the one-half
year period).
Portfolio Composition
BY SECTOR
(BAR CHART DATA:)
Information Technology 31.4%
Health Care 19.5%
Industrials 15.1%
Consumer Discretionary 13.7%
Financials 7.1%
Energy 5.6%
Telecommunication Services 2.0%
Materials 0.9%
Portfolio holdings and allocations are subject to change. Percentages are
as of March 31, 2005, and are based on the total value of investments.
Portfolio of Investments
FIRST INVESTORS ALL-CAP GROWTH FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--95.2%
Consumer Discretionary--13.7%
12,580 * A.C. Moore Arts & Crafts, Inc. $335,383 $20
24,300 Abercrombie & Fitch Company - Class "A" 1,390,932 82
38,900 * Chico's FAS, Inc. 1,099,314 65
21,300 * Coach, Inc. 1,206,219 71
44,180 * Comcast Corporation - Special Class "A" 1,475,612 87
34,533 D.R. Horton, Inc. 1,009,745 59
108,920 * eBay, Inc. 4,058,359 238
13,000 * Electronics Boutique Holdings Corporation 558,610 33
38,200 * GameStop Corporation - Class "B" 851,860 50
28,720 Omnicom Group, Inc. 2,542,294 149
16,000 * Pixar 1,560,800 92
11,830 * Red Robin Gourmet Burgers, Inc. 602,265 35
22,700 Ross Stores, Inc. 661,478 39
6,090 Standard Pacific Corporation 439,637 26
30,930 * Tempur-Pedic International, Inc. 577,154 34
15,200 * Wynn Resorts, Ltd. 1,029,648 60
122,530 * XM Satellite Radio Holdings, Inc. - Class "A" 3,859,695 227
- ----------------------------------------------------------------------------------------------------------------------
23,259,005 1,367
- ----------------------------------------------------------------------------------------------------------------------
Energy--5.6%
13,390 Cabot Oil & Gas Corporation 738,459 43
29,000 EOG Resources, Inc. 1,413,460 83
27,340 Halliburton Company 1,182,455 70
4,800 Oil Service HOLDRs Trust 462,000 27
64,560 Petro-Canada 3,735,442 220
20,740 * Whiting Petroleum Corporation 845,777 50
34,766 XTO Energy, Inc. 1,141,715 67
- ----------------------------------------------------------------------------------------------------------------------
9,519,308 560
- ----------------------------------------------------------------------------------------------------------------------
Financials--7.1%
7,175 * Affiliated Managers Group, Inc. 445,065 26
7,140 * Arch Capital Group, Ltd. 285,886 17
36,520 Capital One Financial Corporation 2,730,600 161
21,800 * CB Richard Ellis Group, Inc. - Class "A" 762,782 45
209,790 Countrywide Financial Corporation 6,809,783 400
12,900 Legg Mason, Inc. 1,008,006 59
- ----------------------------------------------------------------------------------------------------------------------
12,042,122 708
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS ALL-CAP GROWTH FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care--19.4%
81,310 Abbott Laboratories $3,790,672 $223
28,900 * Abgenix, Inc. 202,300 12
12,480 * Advisory Board Company 545,376 32
38,100 Aetna, Inc. 2,855,595 168
13,870 * Amerigroup Corporation 507,087 30
14,960 * Amylin Pharmaceuticals, Inc. 261,650 15
1,400 Arrow International, Inc. 48,090 3
156,190 AstraZeneca PLC (ADR) 6,174,191 363
7,960 * AtheroGenics, Inc. 104,196 6
12,600 * Cephalon, Inc. 590,058 35
26,400 * DaVita, Inc. 1,104,840 65
43,480 Eli Lilly & Company 2,265,308 133
51,840 * Forest Laboratories, Inc. 1,915,488 112
13,700 * Hologic, Inc. 436,688 26
22,550 * Medicines Company 510,983 30
111,320 Medtronic, Inc. 5,671,754 333
16,910 * NPS Pharmaceuticals, Inc. 213,404 12
148,320 Schering-Plough Corporation 2,692,008 158
11,600 * Triad Hospitals, Inc. 581,160 34
21,100 * WellPoint, Inc. 2,644,885 155
- ----------------------------------------------------------------------------------------------------------------------
33,115,733 1,945
- ----------------------------------------------------------------------------------------------------------------------
Industrials--15.1%
105,410 * Apollo Group, Inc. - Class "A" 7,806,665 459
11,100 Corporate Executive Board Company 709,845 42
22,140 * Corrections Corporation of America 854,604 50
33,160 Danaher Corporation 1,771,076 104
39,040 * DiamondCluster International, Inc. 628,544 37
28,600 * Education Management Corporation 799,370 47
10,200 Fastenal Company 564,162 33
16,910 General Dynamics Corporation 1,810,216 106
126,470 General Electric Company 4,560,508 268
8,300 * Jacobs Engineering Group, Inc. 430,936 25
37,300 * Monster Worldwide, Inc. 1,046,265 62
26,510 * Navigant Consulting, Inc. 721,867 42
14,400 PACCAR, Inc. 1,042,416 61
35,700 Robert Half International, Inc. 962,472 57
19,900 Rockwell Collins, Inc. 947,041 56
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Industrials (continued)
6,770 Strayer Education, Inc. $767,176 $45
3,870 * Yellow Roadway Corporation 226,550 13
- ----------------------------------------------------------------------------------------------------------------------
25,649,713 1,507
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--31.4%
54,520 * Accenture, Ltd. - Class "A" 1,316,658 77
31,980 * Aeroflex, Inc. 298,373 17
44,100 * Amdocs, Ltd. 1,252,440 74
18,000 CDW Corporation 1,020,240 60
188,070 * Cisco Systems, Inc. 3,364,572 198
19,700 * Cognizant Technology Solutions
Corporation - Class "A" 910,140 53
161,290 * Dell, Inc. 6,196,762 364
136,260 * Electronic Arts, Inc. 7,055,543 415
8,850 * F5 Networks, Inc. 446,837 26
66,980 First Data Corporation 2,632,984 155
14,830 * Google, Inc. - Class "A" 2,676,963 157
46,900 * Jabil Circuit, Inc. 1,337,588 79
34,200 * Lam Research Corporation 987,012 58
43,350 * Lexmark International
Group, Inc. - Class "A" 3,466,700 204
52,390 * MEMC Electronic Materials, Inc. 704,646 41
20,250 * Microsemi Corporation 329,873 19
129,660 Microsoft Corporation 3,133,882 184
5,980 * NAVTEQ 259,233 15
35,500 * Network Appliance, Inc. 981,930 58
74,560 * Opsware, Inc. 384,730 23
38,420 * Research in Motion, Ltd. 2,936,056 172
28,300 * Salesforce.com, Inc. 424,217 25
42,200 * SanDisk Corporation 1,173,160 69
25,300 * Semtech Corporation 452,111 27
26,800 * Take-Two Interactive Software, Inc. 1,047,880 62
34,720 * THQ, Inc. 977,021 57
9,100 * Websense, Inc. 489,580 29
210,850 * Yahoo!, Inc. 7,147,815 420
- ----------------------------------------------------------------------------------------------------------------------
53,404,946 3,138
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS ALL-CAP GROWTH FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Materials--.9%
14,150 Arch Coal, Inc. $608,591 $36
22,200 Cameco Corporation 982,128 58
- ----------------------------------------------------------------------------------------------------------------------
1,590,719 94
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--2.0%
120,580 * American Tower Corporation - Class "A" 2,198,173 129
77,370 * Crown Castle International Corporation 1,242,562 73
- ----------------------------------------------------------------------------------------------------------------------
3,440,735 202
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $141,273,012) 162,022,281 9,521
- ----------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--4.7%
$7,974M UBS Securities, 2.66%, 3/31/05, to be
repurchased at $7,974,589 on 4/1/05
(collateralized by U.S. Treasury Bonds,
6.875%, 8/15/25, valued at $8,156,977)
(cost $7,974,000) 7,974,000 468
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $149,247,012) 99.9% 169,996,281 9,989
Other Assets, Less Liabilities .1 179,371 11
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $170,175,652 $10,000
======================================================================================================================
* Non-income producing
Summary of Abbreviations:
ADR American Depositary Receipts
See notes to financial statements
Fund Expenses
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with the costs of
other mutual funds. Please refer to page 3 for a detailed explanation of
the information presented in these examples.
- ---------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(10/1/04) (3/31/05) (10/1/04-3/31/05)*
- ---------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,130.33 $7.75
Hypothetical
(5% annual return before expenses) $1,000.00 $1,017.65 $7.34
- ---------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,126.53 $11.45
Hypothetical
(5% annual return before expenses) $1,000.00 $1,014.16 $10.85
- ---------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.46% for Class A
shares and 2.16% for Class B shares, multiplied by the average account
value over the period, multiplied by 182/365 (to reflect the one-half
year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
TOP TEN SECTORS
(BAR CHART DATA:)
Health Care 16.9%
Consumer Discretionary 16.3%
Financials 15.9%
Information Technology 13.6%
Industrials 11.7%
Energy 10.6%
Consumer Staples 5.8%
Materials 3.9%
Other 2.3%
Utilities 2.0%
Portfolio holdings and allocations are subject to change. Percentages are
as of March 31, 2005, and are based on the total value of investments.
Portfolio of Investments
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--98.9%
Consumer Discretionary--16.3%
75,000 American Axle & Manufacturing Holdings, Inc. $1,837,500 $46
54,400 American Eagle Outfitters, Inc. 1,607,520 40
70,000 Applebee's International, Inc. 1,929,200 49
105,000 Blockbuster, Inc. - Class "A" 927,150 23
60,000 BorgWarner, Inc. 2,920,800 74
70,000 * Chico's FAS, Inc. 1,978,200 50
145,700 Claire's Stores, Inc. 3,356,928 85
45,000 * Coach, Inc. 2,548,350 64
100,000 * Cost Plus, Inc. 2,688,000 68
155,000 * GameStop Corporation - Class "A" 3,434,800 87
75,000 * Helen of Troy, Ltd. 2,053,500 52
115,000 * Hollywood Entertainment Corporation 1,514,550 38
75,000 Kenneth Cole Productions, Inc. - Class "A" 2,185,500 55
30,000 Lear Corporation 1,330,800 34
80,000 Leggett & Platt, Inc. 2,310,400 58
100,000 Movado Group, Inc. 1,850,000 47
55,000 Neiman Marcus Group, Inc. - Class "A" 5,033,050 127
167,000 * Office Depot, Inc. 3,704,060 93
111,400 Orient-Express Hotels, Ltd. 2,907,540 73
165,000 * Pacific Sunwear of California, Inc. 4,616,700 117
56,100 Polo Ralph Lauren Corporation - Class "A" 2,176,680 55
60,000 * Quiksilver, Inc. 1,741,800 44
60,000 Regis Corporation 2,455,800 62
50,000 Ross Stores, Inc. 1,457,000 37
65,000 Tiffany & Company 2,243,800 57
50,000 Tupperware Corporation 1,018,000 26
110,000 * Warnaco Group, Inc. 2,644,400 67
- ----------------------------------------------------------------------------------------------------------------------
64,472,028 1,628
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--5.8%
30,000 Altria Group, Inc. 1,961,700 49
190,000 Chiquita Brands International, Inc. 5,088,200 128
140,000 * Herbalife, Ltd. 2,133,600 54
58,900 Hormel Foods Corporation 1,832,379 46
190,000 Nu Skin Enterprises, Inc. - Class "A" 4,276,900 108
60,000 * Performance Food Group Company 1,660,800 42
120,000 * Smithfield Foods, Inc. 3,786,000 96
70,000 Tootsie Roll Industries, Inc. 2,100,000 53
- ----------------------------------------------------------------------------------------------------------------------
22,839,579 576
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Energy--10.5%
40,000 Anadarko Petroleum Corporation $3,044,000 $77
170,000 Chesapeake Energy Corporation 3,729,800 94
93,800 EOG Resources, Inc. 4,571,812 115
165,000 * Grant Prideco, Inc. 3,986,400 101
160,000 Patterson-UTI Energy, Inc. 4,003,200 101
80,000 Suncor Energy, Inc. 3,216,800 81
110,600 * Swift Energy Company 3,145,464 79
142,500 Talisman Energy, Inc. 4,866,375 123
77,500 * Transocean, Inc. 3,988,150 101
50,000 * Weatherford International, Ltd. 2,897,000 73
133,333 XTO Energy, Inc. 4,378,656 110
- ----------------------------------------------------------------------------------------------------------------------
41,827,657 1,055
- ----------------------------------------------------------------------------------------------------------------------
Financials--15.9%
40,000 Ambac Financial Group, Inc. 2,990,000 75
52,500 Astoria Financial Corporation 1,328,250 34
30,000 Bear Stearns Companies, Inc. 2,997,000 76
60,000 Brookline Bancorp, Inc. 894,000 23
45,000 * CapitalSource, Inc. 1,035,000 26
37,488 Citigroup, Inc. 1,684,711 43
30,000 City National Corporation 2,094,600 53
135,000 Colonial BancGroup, Inc. 2,770,200 70
100,000 * Conseco, Inc. 2,042,000 51
56,250 Doral Financial Corporation 1,231,312 31
78,400 Endurance Specialty Holdings, Ltd. 2,966,656 75
95,000 Hub International, Ltd. 1,833,500 46
75,000 Independence Community Bank Corporation 2,925,000 74
175,000 Janus Capital Group, Inc. 2,441,250 62
55,000 KeyCorp 1,784,750 45
100,000 Montpelier Re Holdings, Ltd. 3,515,000 89
111,666 New York Community Bancorp, Inc. 2,027,855 51
135,000 NewAlliance Bancshares, Inc. 1,890,000 48
154,432 North Fork Bancorporation, Inc. 4,283,944 108
44,400 PartnerRe, Ltd. 2,868,240 72
60,900 Protective Life Corporation 2,393,370 60
40,000 Provident Financial Services, Inc. 684,000 17
52,000 SAFECO Corporation 2,532,920 64
110,000 South Financial Group, Inc. 3,359,400 85
200,640 Sovereign Bancorp, Inc. 4,446,182 112
71,000 * TD Banknorth, Inc. 2,218,040 56
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Financials (continued)
28,000 Zions Bancorporation $1,932,560 $49
- ----------------------------------------------------------------------------------------------------------------------
63,169,740 1,595
- ----------------------------------------------------------------------------------------------------------------------
Health Care--16.9%
94,150 * Accredo Health, Inc. 4,181,201 106
56,000 Aetna, Inc. 4,197,200 106
35,000 AmerisourceBergen Corporation 2,005,150 51
75,000 * Aspreva Pharmaceuticals Corporation 1,091,250 27
55,000 Beckman Coulter, Inc. 3,654,750 92
53,000 Biomet, Inc. 1,923,900 49
125,000 * Caremark Rx, Inc. 4,972,500 126
125,000 * Centene Corporation 3,748,750 95
54,000 * Charles River Laboratories International, Inc. 2,540,160 64
95,000 * Community Health Systems, Inc. 3,316,450 84
43,000 DENTSPLY International, Inc. 2,339,630 59
10,000 * Express Scripts, Inc. 871,900 22
60,000 * Gilead Sciences, Inc. 2,148,000 54
70,000 * Henry Schein, Inc. 2,508,800 63
200,000 * Human Genome Sciences, Inc. 1,844,000 46
65,000 * Humana, Inc. 2,076,100 52
95,000 * Idenix Pharmaceuticals, Inc. 1,885,750 48
50,000 * Laboratory Corporation of America Holdings 2,410,000 61
61,600 * Neurocrine Biosciences, Inc. 2,344,496 59
35,000 * PacifiCare Health Systems, Inc. 1,992,200 50
85,000 * Priority Healthcare Corporation - Class "B" 1,838,550 46
80,000 * Thermo Electron Corporation 2,023,200 51
60,000 * Triad Hospitals, Inc. 3,006,000 76
65,000 * Waters Corporation 2,326,350 59
44,000 * WellPoint, Inc. 5,515,400 139
- ----------------------------------------------------------------------------------------------------------------------
66,761,687 1,685
- ----------------------------------------------------------------------------------------------------------------------
Industrials--11.7%
165,000 * AGCO Corporation 3,011,250 76
43,000 Avery Dennison Corporation 2,662,990 67
93,500 Chicago Bridge & Iron Company
NV - NY Shares 4,116,805 104
43,000 * ChoicePoint, Inc. 1,724,730 44
41,000 FedEx Corporation 3,851,950 97
55,000 IDEX Corporation 2,219,250 56
125,000 Knoll, Inc. 2,085,000 53
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Industrials (continued)
30,000 L-3 Communications Holdings, Inc. $2,130,600 $54
67,000 Manpower, Inc. 2,915,840 74
91,400 Masco Corporation 3,168,838 80
65,000 * Mobile Mini, Inc. 2,626,650 66
75,000 Northrop Grumman Corporation 4,048,500 102
225,000 * Pinnacle Airlines Corporation 2,389,500 60
30,900 Rockwell Automation, Inc. 1,750,176 44
79,300 SPX Corporation 3,432,104 87
57,600 United Defense Industries, Inc. 4,228,992 107
- ----------------------------------------------------------------------------------------------------------------------
46,363,175 1,171
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--13.6%
113,000 Amphenol Corporation - Class "A" 4,185,520 106
37,500 * CheckFree Corporation 1,528,500 38
125,000 * Comverse Technology, Inc. 3,152,500 79
35,000 * DST Systems, Inc. 1,616,300 41
100,000 * Electronics for Imaging, Inc. 1,784,000 45
71,250 Fair Isaac Corporation 2,453,850 62
175,000 * Ingram Micro, Inc. - Class "A" 2,917,250 74
27,900 * International Rectifier Corporation 1,269,450 32
105,000 Intersil Corporation - Class "A" 1,818,600 46
62,500 * Intuit, Inc. 2,735,625 69
120,000 * Manhattan Associates, Inc. 2,444,400 62
110,000 * McAfee, Inc. 2,481,600 63
180,000 * Novatel Wireless, Inc. 1,935,000 49
70,000 * Novellus Systems, Inc. 1,871,100 47
90,000 * palmOne, Inc. 2,284,200 58
125,000 * Paxar Corporation 2,667,500 67
150,000 * Polycom, Inc. 2,542,500 64
30,000 * SanDisk Corporation 834,000 21
60,000 * Storage Technology Corporation 1,848,000 47
75,600 * SunGard Data Systems, Inc. 2,608,200 66
165,000 * Sybase, Inc. 3,045,900 77
100,000 * Tellabs, Inc. 730,000 18
160,000 * VERITAS Software Corporation 3,715,200 94
125,000 * Vishay Intertechnology, Inc. 1,553,750 39
- ----------------------------------------------------------------------------------------------------------------------
54,022,945 1,364
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Materials--3.9%
60,000 Freeport-McMoRan Copper & Gold, Inc. - Class "B" $2,376,600 $60
60,000 Georgia-Pacific Corporation 2,129,400 54
65,000 Louisiana-Pacific Corporation 1,634,100 41
60,000 Lubrizol Corporation 2,438,400 62
80,000 MeadWestvaco Corporation 2,545,600 64
50,000 Praxair, Inc. 2,393,000 60
150,000 Sappi, Ltd. (ADR) 1,845,000 47
- ----------------------------------------------------------------------------------------------------------------------
15,362,100 388
- ----------------------------------------------------------------------------------------------------------------------
Other--2.3%
75,000 MidCap SPDR Trust - Series "1" 9,027,000 228
- ----------------------------------------------------------------------------------------------------------------------
Utilities--2.0%
59,500 AGL Resources, Inc. 2,078,335 53
35,000 Equitable Resources, Inc. 2,010,400 51
50,000 SCANA Corporation 1,911,000 48
57,000 Wisconsin Energy Corporation 2,023,500 51
- ----------------------------------------------------------------------------------------------------------------------
8,023,235 203
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $306,262,874) 391,869,146 9,893
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT
AGENCY OBLIGATIONS--.6%
$2,600M Tennessee Valley Authority, 2.67%, 4/28/05
(cost $2,594,793) 2,594,793 66
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--.4%
1,400M New York Times Co., 2.74%, 4/4/05
(cost $1,399,680) 1,399,680 35
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $310,257,347) 99.9% 395,863,619 9,994
Other Assets, Less Liabilities .1 231,588 6
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $396,095,207 $10,000
======================================================================================================================
* Non-income producing
Summary of Abbreviations:
ADR American Depositary Receipts
Fund Expenses
FIRST INVESTORS SPECIAL SITUATIONS FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with the costs of
other mutual funds. Please refer to page 3 for a detailed explanation of
the information presented in these examples.
- ---------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(10/1/04) (3/31/05) (10/1/04-3/31/05)*
- ---------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,116.38 $8.23
Hypothetical
(5% annual return before expenses) $1,000.00 $1,017.15 $7.85
- ---------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,111.97 $11.90
Hypothetical
(5% annual return before expenses) $1,000.00 $1,013.66 $11.35
- ---------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.56% for Class A
shares and 2.26% for Class B shares, multiplied by the average account
value over the period, multiplied by 182/365 (to reflect the one-half
year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition
TOP TEN SECTORS
(BAR CHART DATA:)
Industrials 18.8%
Information Technology 17.8%
Consumer Discretionary 13.9%
Health Care 12.1%
Energy 9.2%
Utilities 5.9%
Financials 5.5%
Telecommunication Services 4.9%
Consumer Staples 4.4%
Other 3.4%
Portfolio holdings and allocations are subject to change. Percentages are
as of March 31, 2005, and are based on the total value of investments.
Board Considerations of Advisory Contracts and Fees
FIRST INVESTORS SPECIAL SITUATIONS FUND
The Board of Trustees of the First Investors Series Fund approved a
Subadvisory Agreement ("Subadvisory Agreement") among First Investors
Management Company, Inc. ("FIMCO"), Paradigm Capital Management, Inc.
("PCM"), and the First Investors Series Fund for Special Situations Fund
("the Fund") at its meeting on November 18, 2004.
The Board considered several factors when evaluating PCM and in approving
the Subadvisory Agreement, including PCM's experience in managing assets
in the small cap value style, its reputation, the past performance of an
account managed by PCM in the small cap value style, its overall
capabilities to perform the services under the Subadvisory Agreement and
its willingness to perform those services for the Fund. The material
factors considered by the Board included, but were not limited to the
following.
* Discussion of the nature, extent, and quality of the services to be
provided by PCM. The Board proposed that PCM manage the investment
operations and the assets of the Fund, subject to supervision by FIMCO and
the Board. In determining that PCM's services would benefit the Fund, the
Board considered that PCM's investment process, including its
value-oriented style and the background and experience of the portfolio
management team, could enhance the performance of the Fund. In addition,
the Board considered PCM's investment resources and the adequacy of its
compliance program.
* Discussion of the performance of the Fund and PCM. The Board evaluated
the Fund's performance relative to PCM's performance record for a small
cap value managed account during the previous three calendar years since
inception and for the one, two, and three year periods ended October 31,
2004. The Board noted that the performance of the PCM managed account was
better than relevant indices for most of the time periods presented,
including since inception and year-to-date performance periods.
* Discussion of the costs of the services to be provided and profits to be
realized by PCM and its affiliates from the relationship with the Fund.
The Board considered the representation from PCM that the fee schedule in
the Subadvisory Agreement is lower than the fee schedule for PCM's other
subadvisory relationships. Since the subadvisory relationship with PCM is
new, the Board did not consider the costs of the services to be provided
and profits to be realized by PCM and its affiliates from the relationship
with the Fund.
* Discussion of the extent to which economies of scale would be realized as
the Fund grows and whether fee levels reflect these economies of scale for
the benefit of Fund investors. The Board noted that the fee paid to PCM is
paid by FIMCO
and not the Fund. However, the Board considered that FIMCO
negotiated "breakpoints" in PCM's fee based on the levels of assets in the
Fund and FIMCO's representation that it would not benefit economically
from the proposed fee arrangement with PCM.
* Discussion of the comparisons of the amounts to be paid under the
Subadvisory Agreement with those under contracts between PCM and its other
clients. The Board considered PCM's representation that the fee schedule
for the Fund under the Subadvisory Agreement is lower than the fee
schedule for PCM's other subadvisory relationships, which include a
registered investment company and other institutional investors.
* Discussion of the benefits to be derived by PCM from the relationship
with the Fund. The Board considered the benefits accruing to PCM as a
result of the subadvisory relationship with the Fund, including materially
expanding the level of assets under management by PCM and potentially
increased opportunities for soft dollar arrangements. The term soft
dollars generally refers to arrangements where an investment adviser
purchases brokerage and research services provided by broker-dealers with
commissions from its clients' securities transactions.
Portfolio of Investments
FIRST INVESTORS SPECIAL SITUATIONS FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--96.8%
Consumer Discretionary--13.8%
99,800 Arbitron, Inc. $4,281,420 $188
124,500 Catalina Marketing Corporation 3,224,550 142
143,700 Dillard's, Inc. - Class "A" 3,865,530 170
119,200 Foot Locker, Inc. 3,492,560 153
182,400 Journal Communications, Inc. 3,018,720 133
55,700 Media General, Inc. 3,445,045 151
117,900 * Quiksilver, Inc. 3,422,637 150
73,600 Sherwin-Williams Company 3,237,664 142
115,300 * Zale Corporation 3,426,716 151
- ----------------------------------------------------------------------------------------------------------------------
31,414,842 1,380
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--4.4%
115,000 Flower Foods, Inc. 3,244,150 142
79,800 Lancaster Colony Corporation 3,395,490 149
112,908 Tootsie Roll Industries, Inc. 3,387,240 149
- ----------------------------------------------------------------------------------------------------------------------
10,026,880 440
- ----------------------------------------------------------------------------------------------------------------------
Energy--9.2%
68,300 Ashland, Inc. 4,608,201 202
161,800 Chesapeake Energy Corporation 3,549,892 156
41,500 Kerr-McGee Corporation 3,250,695 143
55,300 Overseas Shipholding Group, Inc. 3,478,923 153
76,700 * Swift Energy Company 2,181,348 96
102,400 * Tesoro Corporation 3,790,848 166
- ----------------------------------------------------------------------------------------------------------------------
20,859,907 916
- ----------------------------------------------------------------------------------------------------------------------
Financials--5.4%
121,500 Commerce Bancorp, Inc. 3,945,105 173
51,800 HCC Insurance Holdings, Inc. 1,873,088 82
174,900 MoneyGram International, Inc. 3,303,861 145
66,400 U.S.B. Holding Company, Inc. 1,473,416 64
43,300 Westcorp, Inc. 1,829,425 80
- ----------------------------------------------------------------------------------------------------------------------
12,424,895 544
- ----------------------------------------------------------------------------------------------------------------------
Health Care--12.0%
142,100 * AmSurg Corporation 3,595,130 158
442,000 * BioScrip, Inc. 2,665,260 117
102,200 * Humana, Inc. 3,264,268 143
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care (continued)
103,200 * LabOne, Inc. $3,558,336 $156
83,000 * Lincare Holdings, Inc. 3,671,090 161
102,200 * Magellan Health Services, Inc. 3,479,910 153
107,000 Matthews International Corporation - Class "A" 3,505,320 154
151,600 West Pharmaceutical Services, Inc. 3,623,240 159
- ----------------------------------------------------------------------------------------------------------------------
27,362,554 1,201
- ----------------------------------------------------------------------------------------------------------------------
Industrials--18.7%
120,200 Angelica Corporation 3,365,600 148
32,000 Curtiss-Wright Corporation 1,824,000 80
147,200 * Dycom Industries, Inc. 3,384,128 149
79,200 HNI Corporation 3,560,040 156
63,800 * Jacobs Engineering Group, Inc. 3,312,496 146
175,100 * Kansas City Southern 3,372,426 148
86,200 * NCI Building Systems, Inc. 3,327,320 146
46,500 Oshkosh Truck Corporation 3,812,535 167
121,700 United Industrial Corporation 3,604,754 158
179,200 Wabtec Corporation 3,671,808 161
70,400 * Washington Group International, Inc. 3,167,296 139
124,900 Watson Wyatt & Company Holdings 3,397,280 149
38,400 Woodward Governor Company 2,753,280 121
- ----------------------------------------------------------------------------------------------------------------------
42,552,963 1,868
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--17.7%
192,000 * Avnet, Inc. 3,536,640 155
107,300 * Cabot Microelectronics Corporation 3,367,074 148
230,100 * Convergys Corporation 3,435,393 151
159,600 * eFunds Corporation 3,562,272 157
99,000 Imation Corporation 3,440,250 151
123,400 * Intergraph Corporation 3,555,154 156
78,500 * International Rectifier Corporation 3,571,750 157
269,600 * MEMC Electronic Materials, Inc. 3,626,120 159
144,800 * Overland Storage, Inc. 2,125,664 93
89,600 * Rogers Corporation 3,584,000 157
389,600 * Tyler Technologies, Inc. 2,964,856 130
93,100 * Varian Semiconductor Equipment
Associates, Inc. 3,538,731 156
- ----------------------------------------------------------------------------------------------------------------------
40,307,904 1,770
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS SPECIAL SITUATIONS FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Materials--1.5%
147,300 * Pactiv Corporation $3,439,455 $151
- ----------------------------------------------------------------------------------------------------------------------
Other--3.3%
121,900 iShares Russell 2000 Growth Index 7,618,750 334
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--4.9%
95,800 CenturyTel, Inc. 3,146,072 138
333,500 * Premiere Global Services, Inc. 3,775,220 166
51,300 Telephone & Data Systems, Inc. 4,186,080 184
- ----------------------------------------------------------------------------------------------------------------------
11,107,372 488
- ----------------------------------------------------------------------------------------------------------------------
Utilities--5.9%
121,300 Atmos Energy Corporation 3,275,100 144
261,800 * CMS Energy Corporation 3,413,872 150
185,200 Duquesne Light Holdings, Inc. 3,318,784 146
160,100 Pepco Holdings, Inc. 3,360,499 147
- ----------------------------------------------------------------------------------------------------------------------
13,368,255 587
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $206,979,010) 220,483,777 9,679
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT
AGENCY OBLIGATIONS--2.6%
Federal Home Loan Bank:
$3,000M 2.42%, 4/4/05 2,999,395 132
3,000M 2.58%, 4/5/05 2,999,140 132
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term U.S. Government
Agency Obligations (cost $5,998,535) 5,998,535 264
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $212,977,545) 99.4% 226,482,312 9,943
Other Assets, Less Liabilities .6 1,301,846 57
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $227,784,158 $10,000
======================================================================================================================
* Non-income producing
See notes to financial statements
Fund Expenses
FIRST INVESTORS FOCUSED EQUITY FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with the costs of
other mutual funds. Please refer to page 3 for a detailed explanation of
the information presented in these examples.
- ---------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(10/1/04) (3/31/05) (10/1/04-3/31/05)*
- ---------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,055.93 $8.92
Hypothetical
(5% annual return before expenses) $1,000.00 $1,016.25 $8.75
- ---------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,053.69 $12.49
Hypothetical
(5% annual return before expenses) $1,000.00 $1,012.76 $12.24
- ---------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.74% for Class A
shares and 2.44% for Class B shares, multiplied by the average account
value over the period, multiplied by 182/365 (to reflect the one-half
year period).
Portfolio Composition
BY SECTOR
(BAR CHART DATA:)
Information Technology 16.3%
Financials 16.0%
Health Care 16.0%
Industrials 15.2%
Energy 10.3%
Consumer Discretionary 9.5%
Consumer Staples 9.5%
Materials 4.2%
Telecommunication Services 2.0%
Portfolio holdings and allocations are subject to change. Percentages are
as of March 31, 2005, and are based on the total value of investments.
Portfolio of Investments
FIRST INVESTORS FOCUSED EQUITY FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--99.1%
Consumer Discretionary--9.5%
23,900 * Comcast Corporation - Special Class "A" $798,260 $137
23,100 Lowe's Companies, Inc. 1,318,779 227
142,300 * Time Warner, Inc. 2,497,365 429
25,400 Viacom, Inc. - Class "B" 884,682 152
- ----------------------------------------------------------------------------------------------------------------------
5,499,086 945
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--9.5%
20,800 Altria Group, Inc. 1,360,112 234
16,200 General Mills, Inc. 796,230 137
28,700 PepsiCo, Inc. 1,521,961 262
35,300 Procter & Gamble Company 1,870,900 321
- ----------------------------------------------------------------------------------------------------------------------
5,549,203 954
- ----------------------------------------------------------------------------------------------------------------------
Energy--10.3%
25,800 ConocoPhillips 2,782,272 478
21,000 GlobalSantaFe Corporation 777,840 134
9,200 Noble Energy, Inc. 625,784 107
25,900 Schlumberger, Ltd. 1,825,432 314
- ----------------------------------------------------------------------------------------------------------------------
6,011,328 1,033
- ----------------------------------------------------------------------------------------------------------------------
Financials--16.0%
13,220 American International Group, Inc. 732,520 126
51,700 Bank of America Corporation 2,279,970 392
52,000 Citigroup, Inc. 2,336,880 402
5,000 Golden West Financial Corporation 302,500 52
27,200 Merrill Lynch & Company, Inc. 1,539,520 264
13,600 Principal Financial Group, Inc. 523,464 90
28,984 St. Paul Travelers Companies, Inc. 1,064,582 183
12,700 State Street Corporation 555,244 95
- ----------------------------------------------------------------------------------------------------------------------
9,334,680 1,604
- ----------------------------------------------------------------------------------------------------------------------
Health Care--16.0%
34,000 Abbott Laboratories 1,585,080 272
30,000 Baxter International, Inc. 1,019,400 175
16,300 Eli Lilly & Company 849,230 146
11,200 * Genzyme Corporation 641,088 110
12,600 HCA, Inc. 674,982 116
27,600 Medtronic, Inc. 1,406,220 242
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care (continued)
39,500 Pfizer, Inc. $1,037,665 $178
47,500 Schering-Plough Corporation 862,125 148
28,900 Wyeth 1,219,002 210
- ----------------------------------------------------------------------------------------------------------------------
9,294,792 1,597
- ----------------------------------------------------------------------------------------------------------------------
Industrials--15.2%
17,100 Boeing Company 999,666 172
5,500 Caterpillar, Inc. 502,920 86
11,600 CSX Corporation 483,140 83
9,300 General Dynamics Corporation 995,565 171
61,600 General Electric Company 2,221,296 382
11,300 Ingersoll-Rand Company - Class "A" 900,045 155
44,300 Tyco International, Ltd. 1,497,340 257
12,500 United Technologies Corporation 1,270,750 218
- ----------------------------------------------------------------------------------------------------------------------
8,870,722 1,524
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--16.4%
35,000 Analog Devices, Inc. 1,264,900 217
54,500 * Cisco Systems, Inc. 975,005 168
19,700 Computer Associates International, Inc. 533,870 92
30,400 * Dell, Inc. 1,167,968 201
6,200 * Electronic Arts, Inc. 321,036 55
26,200 First Data Corporation 1,029,922 177
110,100 Microsoft Corporation 2,661,117 457
25,700 Texas Instruments, Inc. 655,093 113
26,600 * Yahoo!, Inc. 901,740 155
- ----------------------------------------------------------------------------------------------------------------------
9,510,651 1,635
- ----------------------------------------------------------------------------------------------------------------------
Materials--4.2%
13,900 Air Products & Chemicals, Inc. 879,731 151
31,000 Du Pont (E.I.) de Nemours & Company 1,588,440 273
- ----------------------------------------------------------------------------------------------------------------------
2,468,171 424
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--2.0%
40,000 * Nextel Communications, Inc. - Class "A" 1,136,800 195
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $53,674,958) 57,675,433 9,911
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS FOCUSED EQUITY FUND
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--.9%
$546M UBS Securities, 2.66%, dated 3/31/05,
to be repurchased at $546,040 on 4/1/05
(collateralized by U.S. Treasury Bonds,
6.125%, 8/15/29, valued at $558,945)
(cost $546,000) $546,000 $93
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $54,220,958) 100.0% 58,221,433 10,004
Excess of Liabilities Over Other Assets .0 (26,991) (4)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $58,194,442 $10,000
======================================================================================================================
* Non-income producing
See notes to financial statements
Fund Expenses
FIRST INVESTORS GLOBAL FUND, INC.
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with the costs of
other mutual funds. Please refer to page 3 for a detailed explanation of
the information presented in these examples.
- ---------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(10/1/04) (3/31/05) (10/1/04-3/31/05)*
- ---------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,092.75 $9.24
Hypothetical
(5% annual return before expenses) $1,000.00 $1,016.10 $8.90
- ---------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,088.77 $12.86
Hypothetical
(5% annual return before expenses) $1,000.00 $1,012.61 $12.39
- ---------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.77% for Class A
shares and 2.47% for Class B shares, multiplied by the average account
value over the period, multiplied by 182/365 (to reflect the one-half
year period).
Portfolio Composition
TOP TEN COUNTRIES
(BAR CHART DATA:)
United States 50.7%
Japan 9.0%
France 8.8%
United Kingdom 7.7%
Canada 4.1%
Switzerland 3.3%
Netherlands 2.2%
Germany 2.2%
Italy 1.9%
Sweden 1.7%
Portfolio holdings and allocations are subject to change. Percentages are
as of March 31, 2005, and are based on the total value of investments.
Portfolio of Investments
FIRST INVESTORS GLOBAL FUND, INC.
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--98.8%
United States--49.4%
53,600 Abbott Laboratories $2,498,832 $105
41,100 Air Products & Chemicals, Inc. 2,601,219 109
49,500 Alcoa, Inc. 1,504,305 63
31,900 Altria Group, Inc. 2,085,941 88
11,700 American Express Company 601,029 25
19,753 American International Group, Inc. 1,094,514 46
84,100 Bank of America Corporation 3,708,810 156
31,800 Baxter International, Inc. 1,080,564 45
25,500 Boeing Company 1,490,730 63
16,200 * Cablevision Systems Corporation
Group - Class "A" 454,410 19
8,300 Caterpillar, Inc. 758,952 32
82,100 * Cisco Systems, Inc. 1,468,769 62
68,200 * Citadel Broadcasting Corporation 936,386 39
78,749 Citigroup, Inc. 3,538,980 149
30,400 * Comcast Corporation - Class "A" 1,015,360 43
29,800 Computer Associates International, Inc. 807,580 34
39,400 ConocoPhillips 4,248,896 179
22,600 CSX Corporation 941,290 40
45,300 * Dell, Inc. 1,740,426 73
40,000 DuPont (E.I.) de Nemours & Company 2,049,600 86
20,900 * Electronic Arts, Inc. 1,082,202 46
23,700 Eli Lilly & Company 1,234,770 52
2,800 FedEx Corporation 263,060 11
39,300 First Data Corporation 1,544,883 65
38,100 * Fiserv, Inc. 1,516,380 64
17,000 Franklin Resources, Inc. 1,167,050 49
9,700 Freddie Mac 613,040 26
14,300 Freeport-McMoRan Copper & Gold, Inc. - Class "B" 566,423 24
31,200 Gap, Inc. 681,408 29
9,100 General Dynamics Corporation 974,155 41
93,000 General Electric Company 3,353,580 141
17,300 General Mills, Inc. 850,295 36
33,300 * Genzyme Corporation 1,906,092 80
18,200 Gillette Company 918,736 39
54,800 GlobalSantaFe Corporation 2,029,792 85
17,300 Golden West Financial Corporation 1,046,650 44
29,800 HCA, Inc. 1,596,386 67
40,000 * Health Net, Inc. 1,308,400 55
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
United States (continued)
26,100 Ingersoll-Rand Company, Ltd. - Class "A" $2,078,865 $87
52,760 Intel Corporation 1,225,615 51
22,600 Kellogg Company 977,902 41
29,100 * Lamar Advertising Company - Class "A" 1,172,439 49
34,800 Lowe's Companies, Inc. 1,986,732 84
29,900 Market 2000+ Holders Trust 1,606,826 68
15,800 Maxim Integrated Products, Inc. 645,746 27
41,300 Medtronic, Inc. 2,104,235 89
39,900 Merrill Lynch & Company, Inc. 2,258,340 95
26,500 Michaels Stores, Inc. 961,950 40
165,700 Microsoft Corporation 4,004,969 168
29,700 Motorola, Inc. 444,609 19
59,900 * Nextel Communications, Inc. - Class "A" 1,702,358 72
49,100 Noble Energy, Inc. 3,339,782 140
33,500 Northern Trust Corporation 1,455,240 61
42,700 PepsiCo, Inc. 2,264,381 95
52,625 Pfizer, Inc. 1,382,459 58
30,500 PG&E Corporation 1,040,050 44
67,500 * Polycom, Inc. 1,144,125 48
11,800 Precision Castparts Corporation 908,718 38
21,400 Principal Financial Group, Inc. 823,686 35
35,100 Procter & Gamble Company 1,860,300 78
19,400 Rockwell Collins, Inc. 923,246 39
40,100 * Safeway, Inc. 743,053 31
123,400 Schering-Plough Corporation 2,239,710 94
25,200 Schlumberger, Ltd. 1,776,096 75
42,825 St. Paul Travelers Companies, Inc. 1,572,962 66
26,900 Staples, Inc. 845,467 36
10,100 State Street Corporation 441,572 19
60,200 Symbol Technologies, Inc. 872,298 37
51,400 Texas Instruments, Inc. 1,310,186 55
206,800 * Time Warner, Inc. 3,629,340 153
66,500 Tyco International, Ltd. 2,247,700 95
19,100 United Technologies Corporation 1,941,706 82
39,200 Viacom, Inc. - Class "B" 1,365,336 57
11,700 Wal-Mart Stores, Inc. 586,287 25
41,000 Wyeth 1,729,380 73
40,100 * Yahoo!, Inc. 1,359,390 57
16,700 Zions Bancorporation 1,152,634 48
- ----------------------------------------------------------------------------------------------------------------------
117,405,585 4,939
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS GLOBAL FUND, INC.
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Japan--9.0%
46,000 Canon, Inc. $2,472,887 $104
50,000 Eisai Company, Ltd. 1,701,571 72
44,100 Electric Power Development Company, Ltd. 1,360,602 57
11,500 Fast Retailing Company, Ltd. 697,784 29
270 Japan Tobacco, Inc. 3,003,927 126
5,600 Keyence Corporation 1,300,523 55
10,300 Nidec Corporation 1,285,574 54
10,900 ORIX Corporation 1,393,072 59
56,000 Sankyo Company, Ltd. 1,183,246 50
29,600 Shin-Etsu Chemical Company, Ltd. 1,123,560 47
27,300 Sony Corporation 1,089,856 46
23,200 Takeda Pharmaceutical Co., Ltd.. 1,108,377 47
23,610 Takefuji Corporation 1,593,719 67
393 * UFJ Holdings, Inc. 2,072,289 87
- ----------------------------------------------------------------------------------------------------------------------
21,386,987 900
- ----------------------------------------------------------------------------------------------------------------------
France--8.8%
9,200 Air Liquid SA 1,696,663 71
46,367 Axa 1,238,358 52
29,166 Essilor International SA 2,113,231 89
74,008 European Aeronautic Defence and
Space Company 2,218,009 93
63,583 France Telecom SA 1,908,878 80
27,469 Sanofi - Aventis 2,322,284 98
45,881 Societe Television Francaise 1 1,454,950 61
101,352 STMicroelectronics NV 1,691,308 71
10,344 Total SA 2,426,560 102
2,353 Unibail 279,660 12
116,400 * Vivendi Universal SA 3,574,719 151
- ----------------------------------------------------------------------------------------------------------------------
20,924,620 880
- ----------------------------------------------------------------------------------------------------------------------
United Kingdom--7.7%
79,200 AstraZeneca PLC 3,121,846 131
337,500 Centrica PLC 1,471,592 62
345,254 EMI Group PLC 1,541,283 65
54,571 Imperial Tobacco Group PLC 1,432,307 60
598 * mm 02 PLC (ADR)** 13,475 1
105,339 Reckitt Benckiser PLC 3,348,013 141
105,508 Royal Bank of Scotland Group PLC 3,357,372 141
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
United Kingdom (continued)
136,600 Vedanta Resources PLC $1,215,748 $51
1,071,012 Vodafone Group PLC 2,843,431 120
- ----------------------------------------------------------------------------------------------------------------------
18,345,067 772
- ----------------------------------------------------------------------------------------------------------------------
Canada--4.1%
53,800 Canadian Pacific Railway, Ltd. 1,945,489 82
21,217 EnCana Corporation 1,498,176 63
38,400 Fairmont Hotels & Resorts, Inc. 1,272,576 54
49,600 Petro-Canada 2,880,026 121
60,000 Talisman Energy, Inc. 2,052,651 86
- ----------------------------------------------------------------------------------------------------------------------
9,648,918 406
- ----------------------------------------------------------------------------------------------------------------------
Switzerland--3.3%
9,800 Nestle SA - Registered 2,690,704 113
14,530 Roche Holding AG - Genusscheine 1,562,837 66
29,900 UBS AG - Registered 2,533,686 106
6,642 * Zurich Financial Services AG - Registered 1,169,692 49
- ----------------------------------------------------------------------------------------------------------------------
7,956,919 334
- ----------------------------------------------------------------------------------------------------------------------
Netherlands--2.3%
92,400 Aegon NV 1,250,109 52
88,072 * ASML Holding NV 1,491,446 63
310,800 * Koninklijke Ahold NV 2,609,389 110
- ----------------------------------------------------------------------------------------------------------------------
5,350,944 225
- ----------------------------------------------------------------------------------------------------------------------
Germany--2.2%
72,800 * Bayerische Hypo-und Vereinsbank AG 1,783,479 75
111,200 * Deutsche Telekom AG - Registered 2,227,064 94
9,635 Muenchener Rueckversicherungs -
Gesellschaft AG - Registered 1,160,798 49
- ----------------------------------------------------------------------------------------------------------------------
5,171,341 218
- ----------------------------------------------------------------------------------------------------------------------
Italy--1.9%
269,540 Banca Intesa SpA 1,373,202 58
88,070 Eni SpA 2,292,631 96
108,300 * Geox SpA 945,851 40
- ----------------------------------------------------------------------------------------------------------------------
4,611,684 194
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS GLOBAL FUND, INC.
March 31, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Sweden--1.7%
27,850 AB SKF - Class "B" $1,306,853 $55
111,580 Swedish Match AB 1,370,353 58
483,070 * Telefonaktiebolaget LM
Ericsson AB - Class "B" 1,364,876 57
- ----------------------------------------------------------------------------------------------------------------------
4,042,082 170
- ----------------------------------------------------------------------------------------------------------------------
Taiwan--1.5%
79,100 AU Optronics Corporation (ADR) 1,159,606 49
271,519 Taiwan Semiconductor Manufacturing
Company, Ltd. (ADR) 2,302,481 97
- ----------------------------------------------------------------------------------------------------------------------
3,462,087 146
- ----------------------------------------------------------------------------------------------------------------------
Hong Kong--1.4%
324,000 Esprit Holdings, Ltd. 2,212,107 93
130,000 Sun Hung Kai Properties, Ltd. 1,179,265 50
- ----------------------------------------------------------------------------------------------------------------------
3,391,372 143
- ----------------------------------------------------------------------------------------------------------------------
Spain--1.2%
169,108 Banco Bilbao Vizcaya Argentaria SA 2,760,445 116
- ----------------------------------------------------------------------------------------------------------------------
Brazil--.7%
27,200 Companhia Vale Do Rio Doce (ADR) 859,792 36
20,100 Petroleo Brasileiro SA - Petrobras (ADR) 888,018 37
- ----------------------------------------------------------------------------------------------------------------------
1,747,810 73
- ----------------------------------------------------------------------------------------------------------------------
Mexico--.7%
48,100 Cemex SA de CV (ADR) 1,743,625 73
- ----------------------------------------------------------------------------------------------------------------------
Belgium--.5%
31,183 * Belgacom SA 1,292,807 54
- ----------------------------------------------------------------------------------------------------------------------
Turkey--.5%
71,300 Turkcell Iletisim Hizmetleri AS (ADR) 1,217,804 51
- ----------------------------------------------------------------------------------------------------------------------
Denmark--.5%
24,320 Carlsberg A/S - Class "B" 1,209,169 51
- ----------------------------------------------------------------------------------------------------------------------
Ireland--.5%
26,100 * Ryanair Holdings PLC (ADR) 1,142,397 48
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Shares, Invested
Warrants or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Indonesia--.5%
59,200 PT Telekomunikasi Indonesia (ADR) $1,109,408 $47
- ----------------------------------------------------------------------------------------------------------------------
Austria--.4%
22,100 Wienerberger AG 1,008,436 42
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $204,003,522) 234,929,507 9,882
- ----------------------------------------------------------------------------------------------------------------------
WARRANTS--.0%
United States
5,142 * Lucent Technologies, Inc. (expiring 12/10/07)
(cost $0) 3,445 --
- ----------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--.0%
Brazil
23,000 * Vale Do Rio Doce - Class "B" (cost $0) 375 --
- ----------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--1.5%
$3,531M UBS Securities, 2.66%, dated 3/31/05, to be
repurchased at $3,531,261 on 4/1/05
(collateralized by U.S. Treasury Bonds,
12%, 8/15/13, valued at $3,608,189)
(cost $3,531,000) 3,531,000 149
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $207,534,522) 100.3% 238,464,327 10,031
Excess of Liabilities Over Other Assets (.3) (734,378) (31)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $237,729,949 $10,000
======================================================================================================================
* Non-income producing
** Security valued at fair value (see Note 1A)
Summary of Abbreviations:
ADR American Depositary Receipts
See notes to financial statements
Portfolio of Investments (continued)
FIRST INVESTORS GLOBAL FUND, INC.
March 31, 2005
Sector diversification of the portfolio was as follows:
- ----------------------------------------------------------------------------------------------------------------------
Percentage
Sector of Net Assets Value
- ----------------------------------------------------------------------------------------------------------------------
Energy 9.9% $23,432,627
Pharmaceuticals & Biotechnology 9.2 21,991,404
Capital Goods 8.1 19,210,950
Banks 7.5 17,867,921
Food, Beverage & Tobacco 6.7 15,884,979
Diversified Financials 6.6 15,806,374
Media 6.4 15,144,223
Materials 5.6 13,361,310
Technology Hardware & Equipment 5.6 13,257,139
Telecommunication Services 5.2 12,315,224
Software & Services 4.3 10,315,404
Semiconductors & Semiconductor Equipment 3.6 8,666,782
Health Care Equipment & Services 3.5 8,202,816
Insurance 3.1 7,486,433
Retailing 3.1 7,385,448
Household & Personal Products 2.6 6,127,049
Transportation 1.8 4,292,236
Food & Staples Retailing 1.7 3,938,729
Utilities 1.6 3,872,244
Consumer Durables & Apparel 0.9 2,035,708
Pooled Vehicle 0.7 1,606,826
Real Estate 0.6 1,458,925
Hotels, Restaurants & Leisure 0.5 1,272,576
Repurchase Agreement 1.5 3,531,000
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments 100.3 238,464,327
Excess of Liabilities Over Other Assets (.3) (734,378)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $237,729,949
======================================================================================================================
See notes to financial statements
This page intentionally left blank.
Statements of Assets and Liabilities
FIRST INVESTORS
March 31, 2005
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL GROWTH & ALL-CAP
RETURN VALUE BLUE CHIP INCOME GROWTH
- ------------------------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $258,976,164 $193,899,778 $379,603,715 $517,820,761 $149,247,012
============ ============ ============ ============ ============
At value (Note 1A) $293,764,144 $247,560,911 $482,469,036 $638,116,211 $169,996,281
Cash 500,593 9,792,646 539,267 2,033,600 32,059
Receivables:
Investment securities sold 1,345,397 229,452 2,938,812 4,543,660 803,286
Dividends and interest 1,154,290 557,217 593,505 526,461 60,584
Shares sold 667,973 924,817 334,869 858,507 257,214
Other assets 41,670 40,524 79,074 104,414 32,017
------------ ------------ ------------ ------------ ------------
Total Assets 297,474,067 259,105,567 486,954,563 646,182,853 171,181,441
------------ ------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased 2,151,256 671,490 5,024,583 7,393,907 658,273
Shares redeemed 362,131 236,686 957,469 698,541 174,614
Dividends payable 17,220 14,007 -- 8,227 --
Accrued advisory fees 188,024 163,152 312,083 396,418 109,263
Accrued shareholder servicing costs 69,028 66,420 131,601 157,057 61,663
Accrued expenses 7,395 -- -- -- 1,976
------------ ------------ ------------ ------------ ------------
Total Liabilities 2,795,054 1,151,755 6,425,736 8,654,150 1,005,789
------------ ------------ ------------ ------------ ------------
Net Assets $294,679,013 $257,953,812 $480,528,827 $637,528,703 $170,175,652
============ ============ ============ ============ ============
Net Assets Consist of:
Capital paid in $279,055,344 $260,985,058 $499,164,564 $578,076,627 $160,780,723
Undistributed net investment income (deficit) (360,175) 488,526 1,767,611 1,280,071 (372,241)
Accumulated net realized loss on investments
and foreign currency transactions (18,804,136) (57,180,905) (123,268,669) (62,123,445) (10,982,099)
Net unrealized appreciation in value
of investments and foreign
currency transactions 34,787,980 53,661,133 102,865,321 120,295,450 20,749,269
------------ ------------ ------------ ------------ ------------
Total $294,679,013 $257,953,812 $480,528,827 $637,528,703 $170,175,652
============ ============ ============ ============ ============
Net Assets:
Class A $257,364,786 $232,133,431 $423,311,638 $553,345,976 $148,515,983
Class B $37,314,227 $25,820,381 $57,217,189 $84,182,727 $21,659,669
Shares outstanding (Note 5):
Class A 19,034,599 35,948,815 21,150,851 42,408,215 18,488,909
Class B 2,799,008 4,059,543 3,045,403 6,745,534 2,780,564
Net asset value and redemption price
per share - Class A $13.52 $6.46 $20.01 $13.05 $8.03
============ ============ ============ ============ ============
Maximum offering price per share - Class A
(Net asset value/.9425)* $14.34 $6.85 $21.23 $13.85 $8.52
============ ============ ============ ============ ============
Net asset value and offering price per share -
Class B (Note 5) $13.33 $6.36 $18.79 $12.48 $7.79
============ ============ ============ ============ ============
Statements of Assets and Liabilities
FIRST INVESTORS
March 31, 2005
- --------------------------------------------------------------------------------------------------------------
MID-CAP SPECIAL FOCUSED
OPPORTUNITY SITUATIONS EQUITY GLOBAL
- --------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $310,257,347 $212,977,545 $54,220,958 $207,534,522
============ ============ ============ ============
At value (Note 1A) $395,863,619 $226,482,312 $58,221,433 $238,464,327
Cash 915,239 818,946 4,407 31,614
Receivables:
Investment securities sold 582,809 2,539,524 37,396 224,144
Dividends and interest 177,068 81,459 53,457 543,717
Shares sold 940,946 165,919 41,042 260,692
Forward currency contracts (Note 4) -- -- -- 9,252
Other assets 53,147 37,244 15,897 56,736
------------ ------------ ------------ ------------
Total Assets 398,532,828 230,125,404 58,373,632 239,590,482
------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased 1,817,961 1,914,328 -- 1,377,667
Shares redeemed 247,800 200,049 111,973 181,919
Dividends payable -- -- -- --
Accrued advisory fees 251,075 146,907 37,859 205,070
Accrued shareholder servicing costs 120,785 79,962 29,358 66,554
Accrued expenses -- -- -- 29,323
------------ ------------ ------------ ------------
Total Liabilities 2,437,621 2,341,246 179,190 1,860,533
------------ ------------ ------------ ------------
Net Assets $396,095,207 $227,784,158 $58,194,442 $237,729,949
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $312,684,832 $230,168,025 $79,156,717 $221,287,178
Undistributed net investment income (deficit) (539,467) (760,376) 167,287 (131,931)
Accumulated net realized loss on investments
and foreign currency transactions (1,656,430) (15,128,258) (25,130,037) (14,362,733)
Net unrealized appreciation in value
of investments and foreign
currency transactions 85,606,272 13,504,767 4,000,475 30,937,435
------------ ------------ ------------ ------------
Total $396,095,207 $227,784,158 $58,194,442 $237,729,949
============ ============ ============ ============
Net Assets:
Class A $343,391,359 $206,495,742 $48,293,164 $223,061,163
Class B $52,703,848 $21,288,416 $9,901,278 $14,668,786
Shares outstanding (Note 5):
Class A 13,379,491 10,983,977 5,850,181 34,449,108
Class B 2,217,436 1,232,051 1,249,209 2,442,660
Net asset value and redemption price
per share - Class A $25.67 $18.80 $8.25 $6.48
============ ============ ============ ============
Maximum offering price per share - Class A
(Net asset value/.9425)* $27.24 $19.95 $8.75 $6.88
============ ============ ============ ============
Net asset value and offering price per share -
Class B (Note 5) $23.77 $17.28 $7.93 $6.01
============ ============ ============ ============
* On purchases of $100,000 or more, the sales charge is reduced.
See notes to financial statements
Statements of Operations
FIRST INVESTORS
Six Months Ended March 31, 2005
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL GROWTH & ALL-CAP
RETURN VALUE BLUE CHIP INCOME GROWTH
- ------------------------------------------------------------------------------------------------------------------------------
Investment Income
Dividends $2,291,558 $3,082,807 $5,372,062 $7,645,788 $920,002
Interest 2,459,286 218,454 115,709 12,366 73,090
------------ ------------ ------------ ------------ ------------
Total income 4,750,844 3,301,261 5,487,771 7,658,154 993,092
------------ ------------ ------------ ------------ ------------
Expenses (Notes 1 and 3):
Advisory fees 1,312,783 877,223 2,083,125 2,251,525 619,339
Distribution plan expenses - Class A 370,259 313,848 643,145 799,678 215,330
Distribution plan expenses - Class B 183,760 123,469 301,329 424,049 108,018
Shareholder servicing costs 368,911 348,213 775,095 875,462 350,632
Professional fees 18,116 20,350 33,441 30,439 18,060
Custodian fees 14,529 12,484 29,811 24,668 7,838
Registration fees 23,092 15,722 14,837 24,351 15,851
Reports to shareholders 18,189 11,215 36,568 15,673 15,839
Directors/trustees' fees 5,197 4,227 9,036 11,058 2,533
Other expenses 25,815 17,854 50,719 52,756 12,990
------------ ------------ ------------ ------------ ------------
Total expenses 2,340,651 1,744,605 3,977,106 4,509,659 1,366,430
Less: Expenses waived (249,315) -- (249,315) -- --
Expenses paid indirectly (7,060) (7,290) (7,631) (7,006) (1,097)
------------ ------------ ------------ ------------ ------------
Net expenses 2,084,276 1,737,315 3,720,160 4,502,653 1,365,333
------------ ------------ ------------ ------------ ------------
Net investment income (loss) 2,666,568 1,563,946 1,767,611 3,155,501 (372,241)
------------ ------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency
Transactions (Note 2):
Net realized gain on investments
and foreign currency transactions 5,771,957 2,634,961 16,696,639 21,477,193 6,800,666
Net unrealized appreciation (depreciation)
of investments and foreign
currency transactions 5,529,298 15,458,840 14,690,307 22,046,686 (2,292,492)
------------ ------------ ------------ ------------ ------------
Net gain on investments and foreign
currency transactions 11,301,255 18,093,801 31,386,946 43,523,879 4,508,174
------------ ------------ ------------ ------------ ------------
Net Increase in Net Assets Resulting
from Operations $13,967,823 $19,657,747 $33,154,557 $46,679,380 $4,135,933
============ ============ ============ ============ ============
Statements of Operations
FIRST INVESTORS
Six Months Ended March 31, 2005
- --------------------------------------------------------------------------------------------------------------
MID-CAP SPECIAL FOCUSED
OPPORTUNITY SITUATIONS EQUITY GLOBAL
- --------------------------------------------------------------------------------------------------------------
Investment Income
Dividends $2,221,557 $1,037,619 $836,812 $1,954,802+
Interest 72,636 48,425 9,313 68,607
------------ ------------ ------------ ------------
Total income 2,294,193 1,086,044 846,125 2,023,409
------------ ------------ ------------ ------------
Expenses (Notes 1 and 3):
Advisory fees 1,609,994 1,102,659 226,680 1,189,033
Distribution plan expenses - Class A 469,286 308,697 74,876 333,854
Distribution plan expenses - Class B 249,950 108,801 52,654 76,185
Shareholder servicing costs 651,151 465,477 169,815 385,785
Professional fees 23,207 33,135 7,375 29,787
Custodian fees 17,802 13,377 4,974 57,196
Registration fees 16,267 23,638 16,311 27,839
Reports to shareholders 20,277 17,250 5,798 14,437
Directors/trustees' fees 4,902 4,136 1,125 5,463
Other expenses 27,338 23,904 2,353 37,207
------------ ------------ ------------ ------------
Total expenses 3,090,174 2,101,074 561,961 2,156,786
Less: Expenses waived (249,315) (249,315) -- --
Expenses paid indirectly (7,199) (5,339) (461) (1,446)
------------ ------------ ------------ ------------
Net expenses 2,833,660 1,846,420 561,500 2,155,340
------------ ------------ ------------ ------------
Net investment income (loss) (539,467) (760,376) 284,625 (131,931)
------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency
Transactions (Note 2):
Net realized gain on investments
and foreign currency transactions 10,677,761 46,061,749 1,792,538 16,959,574
Net unrealized appreciation (depreciation)
of investments and foreign
currency transactions 33,055,690 (21,097,559) 1,246,237 3,757,795
------------ ------------ ------------ ------------
Net gain on investments and foreign
currency transactions 43,733,451 24,964,190 3,038,775 20,717,369
------------ ------------ ------------ ------------
Net Increase in Net Assets Resulting
from Operations $43,193,984 $24,203,814 $3,323,400 $20,585,438
============ ============ ============ ============
+ Net of $66,142 foreign taxes withheld
See notes to financial statements
Statements of Changes in Net Assets
FIRST INVESTORS
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN VALUE
---------------------------- ----------------------------
10/1/2004 to 10/1/2003 to 10/1/2004 to 10/1/2003 to
3/31/2005 9/30/2004 3/31/2005 9/30/2004
- ------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $2,666,568 $3,537,896 $1,563,946 $2,050,767
Net realized gain on investments 5,771,957 8,318,115 2,634,961 4,056,548
Net unrealized appreciation of investments 5,529,298 8,527,394 15,458,840 25,404,854
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 13,967,823 20,383,405 19,657,747 31,512,169
------------ ------------ ------------ ------------
Dividends to Shareholders
Net investment income - Class A (2,511,267) (3,344,902) (1,175,866) (1,866,906)
Net investment income - Class B (250,550) (318,565) (56,379) (112,863
------------ ------------ ------------ ------------
Total dividends (2,761,817) (3,663,467) (1,232,245) (1,979,769)
------------ ------------ ------------ ------------
Share Transactions*
Class A:
Proceeds from shares sold 30,463,743 67,816,731 41,912,037 51,007,936
Reinvestment of dividends 2,470,502 3,288,426 1,147,573 1,814,820
Cost of shares redeemed (16,493,574) (31,026,815) (12,379,951) (19,645,255
------------ ------------ ------------ ------------
16,440,671 40,078,342 30,679,659 33,177,501
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 2,641,844 9,344,252 2,834,506 5,777,938
Reinvestment of dividends 248,959 316,238 55,835 111,791
Cost of shares redeemed (2,674,356) (4,776,454) (2,394,430) (4,941,142)
------------ ------------ ------------ ------------
216,447 4,884,036 495,911 948,587
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions 16,657,118 44,962,378 31,175,570 34,126,088
------------ ------------ ------------ ------------
Net increase in net assets 27,863,124 61,682,316 49,601,072 63,658,488
Net Assets
Beginning of period 266,815,889 205,133,573 208,352,740 144,694,252
------------ ------------ ------------ ------------
End of period+ $294,679,013 $266,815,889 $257,953,812 $208,352,740
============ ============ ============ ============
+ Includes undistributed net investment income (deficit) of $(360,175) $(264,926) $488,526 $156,825
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 2,262,026 5,268,212 6,660,921 8,950,654
Issued for dividends reinvested 181,325 252,536 178,445 310,958
Redeemed (1,223,846) (2,410,468) (1,969,576) (3,441,839)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding 1,219,505 3,110,280 4,869,790 5,819,773
============ ============ ============ ============
Class B:
Sold 199,997 737,727 460,314 1,032,020
Issued for dividends reinvested 18,519 24,614 8,814 19,427
Redeemed (202,439) (375,421) (389,017) (882,554)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding 16,077 386,920 80,111 168,893
============ ============ ============ ============
Statements of Changes in Net Assets
FIRST INVESTORS
- ------------------------------------------------------------------------------------------------------------------------------
BLUE CHIP GROWTH & INCOME
---------------------------- ----------------------------
10/1/2004 to 10/1/2003 to 10/1/2004 to 10/1/2003 to
3/31/2005 9/30/2004 3/31/2005 9/30/2004
- ------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $1,767,611 $(283,785) $3,155,501 $2,341,691
Net realized gain on investments 16,696,639 25,571,788 21,477,193 36,796,326
Net unrealized appreciation of investments 14,690,307 14,361,975 22,046,686 27,753,508
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 33,154,557 39,649,978 46,679,380 66,891,525
------------ ------------ ------------ ------------
Dividends to Shareholders
Net investment income - Class A -- -- (2,817,255) (1,198,784)
Net investment income - Class B -- -- (201,082) --
------------ ------------ ------------ ------------
Total dividends -- -- (3,018,337) (1,198,784)
------------ ------------ ------------ ------------
Share Transactions*
Class A:
Proceeds from shares sold 22,952,010 59,861,560 51,553,252 105,331,802
Reinvestment of dividends -- -- 2,784,314 1,186,897
Cost of shares redeemed (43,129,366) (62,755,398) (37,552,728) (63,168,639)
------------ ------------ ------------ ------------
(20,177,356) (2,893,838) 16,784,838 43,350,060
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 2,004,799 8,311,100 4,459,244 14,981,290
Reinvestment of dividends -- -- 200,260 --
Cost of shares redeemed (9,779,691) (15,084,253) (9,936,356) (17,923,509)
------------ ------------ ------------ ------------
(7,774,892) (6,773,153) (5,276,852) (2,942,219)
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions (27,952,248) (9,666,991) 11,507,986 40,407,841
------------ ------------ ------------ ------------
Net increase in net assets 5,202,309 29,982,987 55,169,029 106,100,582
Net Assets
Beginning of period 475,326,518 445,343,531 582,359,674 476,259,092
------------ ------------ ------------ ------------
End of period+ $480,528,827 $475,326,518 $637,528,703 $582,359,674
============ ============ ============ ============
+ Includes undistributed net investment income (deficit) of $1,767,611 $-- $1,280,071 $1,142,907
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 1,156,532 3,172,176 4,021,823 8,833,243
Issued for dividends reinvested -- -- 211,453 97,777
Redeemed (2,175,666) (3,335,866) (2,929,318) (5,290,872)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding (1,019,134) (163,690) 1,303,958 3,640,148
============ ============ ============ ============
Class B:
Sold 107,359 466,882 364,388 1,312,512
Issued for dividends reinvested -- -- 15,843 --
Redeemed (524,406) (846,873) (812,354) (1,568,845)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (417,047) (379,991) (432,123) (256,333)
============ ============ ============ ============
Statements of Changes in Net Assets
FIRST INVESTORS
- ------------------------------------------------------------------------------------------------------------------------------
ALL-CAP GROWTH MID-CAP OPPORTUNITY
---------------------------- ----------------------------
10/1/2004 to 10/1/2003 to 10/1/2004 to 10/1/2003 to
3/31/2005 9/30/2004 3/31/2005 9/30/2004
- ------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $(372,241) $(1,549,253) $(539,467) $(1,639,804)
Net realized gain on investments 6,800,666 3,952,080 10,677,761 20,378,683
Net unrealized appreciation (depreciation) of investments (2,292,492) 12,347,189 33,055,690 24,729,598
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 4,135,933 14,750,016 43,193,984 43,468,477
------------ ------------ ------------ ------------
Share Transactions*
Class A:
Proceeds from shares sold 23,836,261 52,765,310 46,943,001 79,643,493
Cost of shares redeemed (9,274,948) (11,769,360) (18,305,721) (31,414,210)
------------ ------------ ------------ ------------
14,561,313 40,995,950 28,637,280 48,229,283
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 2,079,047 6,200,445 4,453,563 11,173,893
Cost of shares redeemed (1,301,246) (1,739,011) (3,741,288) (5,939,582)
------------ ------------ ------------ ------------
777,801 4,461,434 712,275 5,234,311
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions 15,339,114 45,457,384 29,349,555 53,463,594
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 19,475,047 60,207,400 72,543,539 96,932,071
Net Assets
Beginning of period 150,700,605 90,493,205 323,551,668 226,619,597
------------ ------------ ------------ ------------
End of period+ $170,175,652 $150,700,605 $396,095,207 $323,551,668
============ ============ ============ ============
+ Includes undistributed net investment income (deficit) of $(372,241) $-- $(539,467) $--
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 2,920,654 6,871,429 1,907,816 3,631,663
Redeemed (1,134,100) (1,531,123) (744,200) (1,427,534)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding 1,786,554 5,340,306 1,163,616 2,204,129
============ ============ ============ ============
Class B:
Sold 262,103 827,213 194,834 548,606
Redeemed (165,191) (231,955) (163,511) (289,487)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding 96,912 595,258 31,323 259,119
============ ============ ============ ============
Statements of Changes in Net Assets
FIRST INVESTORS
- ------------------------------------------------------------------------------------------------------------------------------
SPECIAL SITUATIONS FOCUSED EQUITY
---------------------------- ----------------------------
10/1/2004 to 10/1/2003 to 10/1/2004 to 10/1/2003 to
3/31/2005 9/30/2004 3/31/2005 9/30/2004
- ------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $(760,376) $(2,473,241) $284,625 $(268,089)
Net realized gain on investments 46,061,749 26,478,497 1,792,538 1,822,147
Net unrealized appreciation (depreciation) of investments (21,097,559) (9,729,555) 1,246,237 3,279,568
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 24,203,814 14,275,701 3,323,400 4,833,626
------------ ------------ ------------ ------------
Dividends to Shareholders
Net investment income - Class A -- -- (111,522) --
Net investment income - Class B -- -- (5,816) --
------------ ------------ ------------ ------------
Total dividends -- -- (117,338) --
------------ ------------ ------------ ------------
Share Transactions*
Class A:
Proceeds from shares sold 13,074,410 32,272,999 2,408,819 7,719,981
Reinvestment of dividends -- -- 110,993 --
Cost of shares redeemed (18,054,060) (24,508,853) (6,356,231) (10,216,270)
------------ ------------ ------------ ------------
(4,979,650) 7,764,146 (3,836,419) (2,496,289)
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 974,713 4,172,232 309,539 1,199,744
Reinvestment of dividends -- -- 5,739 --
Cost of shares redeemed (2,555,461) (5,431,921) (1,574,350) (2,128,058)
------------ ------------ ------------ ------------
(1,580,748) (1,259,689) (1,259,072) (928,314)
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions (6,560,398) 6,504,457 (5,095,491) (3,424,603)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 17,643,416 20,780,158 (1,889,429) 1,409,023
Net Assets
Beginning of period 210,140,742 189,360,584 60,083,871 58,674,848
------------ ------------ ------------ ------------
End of period+ $227,784,158 $210,140,742 $58,194,442 $60,083,871
============ ============ ============ ============
+ Includes undistributed net investment income (deficit) of $(760,376) $-- $167,287 $--
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 701,848 1,863,325 292,943 977,797
Issued for dividends reinvested -- -- 13,198 --
Redeemed (972,014) (1,421,872) (772,597) (1,296,757)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding (270,166) 441,453 (466,456) (318,960)
============ ============ ============ ============
Class B:
Sold 57,076 259,292 39,166 157,973
Issued for dividends reinvested -- -- 709 --
Redeemed (149,126) (338,579) (198,674) (280,246)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (92,050) (79,287) (158,799) (122,273)
============ ============ ============ ============
Statements of Changes in Net Assets
FIRST INVESTORS
- ---------------------------------------------------------------------------------------------
GLOBAL
---------------------------
10/1/2004 to 10/1/2003 to
3/31/2005 9/30/2004
- ---------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment loss $(131,931) $(400,083)
Net realized gain on investments and foreign
currency transactions 16,959,574 30,025,702
Net unrealized appreciation of investments and
foreign currency transactions 3,757,795 690,941
------------ ------------
Net increase in net assets resulting from operations 20,585,438 30,316,560
------------ ------------
Share Transactions*
Class A:
Proceeds from shares sold 10,162,316 16,930,869
Cost of shares redeemed (15,700,960) (28,122,035)
------------ ------------
(5,538,644) (11,191,166)
------------ ------------
Class B:
Proceeds from shares sold 745,217 1,931,105
Cost of shares redeemed (2,582,846) (3,892,357)
------------ ------------
(1,837,629) (1,961,252)
------------ ------------
Net decrease from share transactions (7,376,273) (13,152,418)
------------ ------------
Net increase in net assets 13,209,165 17,164,142
Net Assets
Beginning of period 224,520,784 207,356,642
------------ ------------
End of period+ $237,729,949 $224,520,784
============ ============
+ Includes undistributed net investment deficit of $(131,931) $--
============ ============
*Shares Issued and Redeemed
Class A:
Sold 1,579,771 2,881,046
Redeemed (2,448,922) (4,801,535)
------------ ------------
Net decrease in Class A shares outstanding (869,151) (1,920,489)
============ ============
Class B:
Sold 125,285 353,684
Redeemed (435,617) (706,156)
------------ ------------
Net decrease in Class B shares outstanding (310,332) (352,472)
============ ============
See notes to financial statements
Notes to Financial Statements
March 31, 2005
1. Significant Accounting Policies--First Investors Total Return Fund, First
Investors Blue Chip Fund and First Investors Special Situations Fund, each
a series of First Investors Series Fund ("Series Fund"), a Massachusetts
business trust; First Investors Value Fund (formerly Utilities Income),
First Investors Growth & Income Fund, First Investors All-Cap Growth Fund,
First Investors Mid-Cap Opportunity Fund and First Investors Focused Equity
Fund, each a series of First Investors Series Fund II, Inc. ("Series Fund
II"), a Maryland corporation; and First Investors Global Fund, Inc.
("Global Fund"), a Maryland corporation, are registered under the
Investment Company Act of 1940 ("the 1940 Act") as diversified, open-end
management investment companies, with the exception of First Investors
Focused Equity Fund, which is registered as a non-diversified series of the
investment company. Each Fund accounts separately for the assets,
liabilities, and operations of the Fund. Series Fund offers two additional
series which are not included in this report. The objective of each Fund is
as follows:
Total Return Fund seeks high, long-term total investment return consistent
with moderate investment risk.
Value Fund seeks total return.
Blue Chip Fund seeks high total investment return consistent with the
preservation of capital.
Growth & Income Fund seeks long-term growth of capital and current income.
All-Cap Growth Fund seeks long-term growth of capital.
Mid-Cap Opportunity Fund seeks long-term capital growth.
Special Situations Fund seeks long-term growth of capital.
Focused Equity Fund seeks capital appreciation.
Global Fund primarily seeks long-term capital growth and secondarily a
reasonable level of current income.
A. Security Valuation--Except as provided below, a security listed or
traded on an exchange or the Nasdaq Stock Market is valued at its last sale
price on the exchange or market where the security is principally traded,
and lacking any sales, the security is valued at the mean between the
closing bid and asked prices. Securities traded in the over-the-counter
("OTC") market (including securities listed on exchanges whose primary
market is believed to be OTC) are valued at the mean between the last bid
and asked prices based upon quotes furnished by a market maker for such
securities. Securities may also be priced by a pricing service approved by
the applicable Fund's
Notes to Financial Statements (continued)
March 31, 2005
Board of Directors/Trustees ("the Board"). The pricing service considers
security type, rating, market condition and yield data as well as market
quotations, prices provided by market makers and other available
information in determining value. Short-term debt securities that mature in
60 days or less are valued at amortized cost. The Funds monitor for
significant events occurring after the close of foreign markets but prior
to the close of trading on the New York Stock Exchange that could have a
material impact on the value of any foreign securities that are held by the
Funds. Examples of such events include natural disasters, political events,
issuer-specific developments such as bankruptcies and significant
fluctuations in securities markets. If the Valuation Committee decides that
such events warrant using fair value estimates for foreign securities, it
will take such events into consideration in determining the fair values of
such securities. If market quotations or prices are not readily available
or determined to be unreliable, the securities will be valued at fair value
as determined in good faith pursuant to procedures adopted by the Board. At
March 31, 2005, Global Fund held one security that was fair valued by its
Valuation Committee with a value of $13,475 representing .0% of the Fund's
net assets. For valuation purposes, where applicable, quotations of foreign
securities in foreign currency are translated to U.S. dollar equivalents
using the foreign exchange quotation in effect.
B. Federal Income Taxes--No provision has been made for federal income
taxes on net income or capital gains since it is the policy of each Fund to
continue to comply with the special provisions of the Internal Revenue Code
applicable to investment companies and to make sufficient distributions of
income and capital gains (in excess of any available capital loss
carryovers) to relieve it from all, or substantially all, such taxes.
At September 30, 2004, capital loss carryovers were as follows:
Year Capital Loss Carryovers Expire
--------------------------------------------------------------------------------
Fund Total 2008 2009 2010 2011 2012
- ---- ----- ---- ---- ---- ---- ----
Total Return $22,473,294 $ -- $ -- $ 3,370,272 $19,103,022 $ --
Value 59,796,762 -- 5,133,146 18,257,137 36,406,479 --
Blue Chip 129,277,387 -- -- 60,089,848 69,187,539 --
Growth & Income 78,057,817 -- -- 13,237,225 64,820,592 --
All-Cap Growth 17,185,776 -- -- 6,375,516 10,810,260 --
Mid-Cap Opportunity 12,290,944 -- -- 5,604,079 6,686,865 --
Special Situations 60,973,556 -- -- 34,927,376 26,046,180 --
Focused Equity 26,520,358 553,800 12,951,888 1,712,582 9,856,986 1,445,102
Global 30,872,163 -- -- -- 30,872,163 --
C. Distributions to Shareholders--Dividends from net investment income, if
any, of Total Return Fund, Value Fund, Blue Chip Fund and Growth & Income
Fund are normally declared and paid quarterly. Dividends from net
investment income, if any, of All-Cap Growth Fund, Mid-Cap Opportunity
Fund, Special Situations Fund, Focused Equity Fund and Global Fund are
normally declared and paid annually. Distributions from net realized
capital gains, if any, are normally declared and paid annually. Income
dividends and capital gain distributions are determined in accordance with
income tax regulations which may differ from accounting principles
generally accepted in the United States of America. These differences are
primarily due to differing treatments for capital loss carryforwards,
deferral of wash sales losses, post-October capital losses, net operating
losses and foreign currency transactions.
D. Expense Allocation--Expenses directly charged or attributable to a Fund
are paid from the assets of that Fund. General expenses of Series Fund and
Series Fund II 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. Repurchase Agreements--Securities pledged as collateral for repurchase
agreements entered into by the All-Cap Growth Fund, Focused Equity Fund,
and Global Fund are held by each Fund's custodian until maturity of the
repurchase agreement. The agreements provide that the Funds will receive,
as collateral, securities with a market value which will at all times be at
least equal to 100% of the amount invested by the Funds.
F. 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.
G. Foreign Currency Translations--The accounting records of Global Fund are
maintained in U.S. dollars. Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated to U.S.
dollars at the date of valuation. Purchases and sales of investment
securities, dividend income and certain expenses are translated to U.S.
dollars at the rates of exchange prevailing on the respective dates of such
transactions.
Global Fund does not isolate that portion of gains and losses on
investments which is due to changes in foreign exchange rates from that
which is due to changes in market
Notes to Financial Statements (continued)
March 31, 2005
prices of the investments. Such fluctuations are included with the net
realized and unrealized gains and losses from investments.
Net realized and unrealized gains and losses on foreign currency
transactions include gains and losses from the sales of foreign currency
and gains and losses on accrued foreign dividends and related withholding
taxes.
H. Other--Security transactions are accounted for on the date the
securities are purchased or sold. Cost is determined, and gains and losses
are based, on the identified cost basis for both financial statement and
federal income tax purposes. Dividend income is recorded on the ex-dividend
date. Interest income and estimated expenses are accrued daily. Bond
discounts and premiums are accreted or amortized using the interest method.
For the six months ended March 31, 2005, the Bank of New York, custodian
for the Series Fund and Series Fund II, has provided total credits in the
amount of $28,061 against custodian charges based on the uninvested cash
balances of these Funds. The Funds also reduced expenses through brokerage
service arrangements. For the six months ended March 31, 2005, the Funds
expenses were reduced by $16,468 under these arrangements.
2. Security Transactions--For the six months ended March 31, 2005,
purchases and sales of securities and long-term U.S. Government obligations
(excluding U.S. Treasury bills, repurchase agreements, short-term
securities and foreign currencies) were as follows:
Long-Term U.S.
Securities Government Obligations
--------------------------- ---------------------------
Cost of Proceeds Cost of Proceeds
Fund Purchases from Sales Purchases from Sales
- ---- ------------ ------------ ------------ ------------
Total Return $ 73,607,490 $ 55,414,900 $17,161,414 $9,147,455
Value 36,390,818 15,001,811 -- --
Blue Chip 193,705,366 219,076,638 -- --
Growth & Income 123,804,918 109,793,950 -- --
All-Cap Growth 91,202,141 77,224,081 -- --
Mid-Cap Opportunity 105,155,011 70,834,502 -- --
Special Situations 191,183,119 200,033,880 -- --
Focused Equity 19,315,565 24,704,716 -- --
Global 138,151,543 143,147,425 -- --
At March 31, 2005, aggregate cost and net unrealized appreciation of
securities for federal income tax purposes were as follows:
Gross Gross Net
Aggregate Unrealized Unrealized Unrealized
Fund Cost Appreciation Depreciation Appreciation
- ---- ------------ ------------ ------------ ------------
Total Return $261,798,833 $ 39,623,773 $ 7,658,462 $ 31,965,311
Value 193,918,882 55,341,139 1,699,110 53,642,029
Blue Chip 390,291,635 101,859,179 9,681,778 92,177,401
Growth & Income 523,363,583 137,590,816 22,838,188 114,752,628
All-Cap Growth 149,844,001 25,232,011 5,079,731 20,152,280
Mid-Cap Opportunity 310,300,594 96,779,007 11,215,982 85,563,025
Special Situations 213,193,996 17,728,684 4,440,368 13,288,316
Focused Equity 54,623,177 6,906,841 3,308,584 3,598,257
Global 207,984,674 34,179,166 3,699,513 30,479,653
3. Advisory Fee and Other Transactions With Affiliates--Certain officers
and directors/trustees of the Funds are officers and directors of the
Funds' investment adviser, First Investors Management Company, Inc.
("FIMCO"), their underwriter, First Investors Corporation ("FIC"), their
transfer agent, Administrative Data Management Corp. ("ADM") and/or First
Investors Federal Savings Bank, ("FIFSB"), custodian of the Funds'
retirement accounts. Directors/trustees of the Funds who are not
"interested persons" of the Funds as defined in the 1940 Act are
remunerated by the Funds. For the six months ended March 31, 2005, total
directors/trustees fees accrued by the Funds amounted to $47,677.
The Investment Advisory Agreements provide as compensation to FIMCO, an
annual fee, payable monthly, at the following rates:
Total Return, Blue Chip, Mid-Cap Opportunity and Special Situations
Funds--1% on the first $200 million of each Fund's average daily net assets,
..75% on the next $300 million, declining by .03% on each $250 million
thereafter, down to .66% on average daily net assets over $1 billion. FIMCO
has voluntarily waived 25% of the 1% annual fee on the first $200 million
of each Fund's average daily net assets for the six months ended March 31,
2005.
Value, Growth & Income, All-Cap Growth and Focused Equity Funds--.75% on
the first $300 million of each Fund's average daily net assets, .72% on the
next $200 million, .69% on the next $250 million and .66% on average daily
net assets over $750 million.
Notes to Financial Statements (continued)
March 31, 2005
Global Fund--1% on the first $250 million of the Fund's average daily net
assets, declining by .03% on each $250 million thereafter, down to .91% on
average daily net assets over $750 million.
For the six months ended March 31, 2005, total advisory fees accrued to
FIMCO by the Funds were $11,272,361 of which $997,260 was waived.
For the six months ended March 31, 2005, FIC, as underwriter, received
$13,185,941 in commissions from the sale of shares of the Funds, after
allowing $10,991 to other dealers. Shareholder servicing costs included
$3,270,618 in transfer agent fees accrued to ADM and $951,287 in retirement
accounts custodian fees accrued to FIFSB.
Pursuant to Distribution Plans adopted under Rule 12b-1 of the 1940 Act,
each Fund is authorized to pay FIC a fee up to .30% of the average daily
net assets of the Class A shares and 1% of the average daily net assets of
the Class B shares on an annualized basis each fiscal year, payable
monthly. The fee consists of a distribution fee and a service fee. The
service fee is paid for the ongoing servicing of clients who are
shareholders of that Fund. For the six months ended March 31, 2005, total
distribution plan fees accrued to FIC by the Funds amounted to $5,157,188.
Wellington Management Company, LLP ("Wellington") serves as investment
subadviser to All-Cap Growth Fund, Focused Equity Fund and Global Fund.
Effective March 8, 2005, Paradigm Capital Management, Inc. serves as
investment subadviser to Special Situations Fund. The subadvisers are paid
by FIMCO and not by the Funds.
4. Forward Currency Contracts--A forward currency contract is an obligation
to purchase or sell a specific currency for an agreed-upon price at a
future date. When a Fund purchases or sells foreign securities it
customarily enters into a forward currency contract to minimize foreign
exchange risk between the trade date and the settlement date of such
transactions. The Fund could be exposed to risk if counter parties to the
contracts are unable to meet the terms of their contracts or if the value
of the foreign currency changes unfavorably. Forward currency contracts are
"marked-to-market" daily at the applicable translation rate and the
resulting unrealized gains or losses are reflected in the Fund's assets.
Global Fund had the following forward currency contracts outstanding at
March 31, 2005:
Contracts to Buy Unrealized
Foreign Currency In Exchange for Settlement Date Gain
- ---------------------------- --------------- --------------- ----------
492,853 Euro US$ 636,589 4/1/05 US$ 3,946
684,681 Swiss Franc 569,230 4/1/05 5,215
193,907 Swiss Franc 162,063 4/4/05 624
--------------- ----------
$1,367,882 $9,785
=============== ----------
Contracts to Sell Unrealized
Foreign Currency In Exchange for Settlement Date Loss
- ---------------------------- --------------- --------------- ----------
891,645 Swedish Krona $ 126,063 4/1/05 $ (533)
=============== ----------
Net Unrealized Gain on Forward Currency Contract $ 9,252
==========
5. Capital--Each Fund sells two classes of shares, Class A and Class B,
each with a public offering price that reflects different sales charges and
expense levels. Class A shares are sold with an initial sales charge of up
to 5.75% of the amount invested and together with the Class B shares are
subject to distribution plan fees as described in Note 3. Class B shares
are sold without an initial sales charge, but are generally subject to a
contingent deferred sales charge which declines in steps from 4% to 0% over
a six-year period. Class B shares automatically convert into Class A shares
after eight years. Realized and unrealized gains or losses, investment
income and expenses (other than distribution plan fees and certain other
class expenses) are allocated daily to each class of shares based upon the
relative proportion of net assets of each class. Series Fund has
established an unlimited number of no par value shares of beneficial
interest for both Class A and Class B shares. Of the 100,000,000 $0.001
par value shares originally designated to each Fund, Series Fund II has
classified 50,000,000 shares as Class A and 50,000,000 shares as Class B
for each Fund. Of the 100,000,000 $1.00 par value Global Fund shares
originally authorized, the Fund has designated 65,000,000 shares as Class A
and 35,000,000 shares as Class B.
6. Restricted Securities--Certain restricted securities are exempt from the
registration requirements under Rule 144A of the Securities Act of 1933 and
may only be sold to qualified institutional investors. At March 31, 2005,
Total Return Fund held two 144A securities with an aggregate value of
$1,877,675 representing .6% of the Fund's net assets. Certain restricted
securities are exempt from the registration requirements under Section 4(2)
of the Securities Act of 1933 and may only be sold to qualified investors.
At March 31, 2005, Total Return Fund held two
Notes to Financial Statements (continued)
March 31, 2005
Section 4(2) securities with an aggregate value of $3,198,015 representing
1.1% of the Fund's net assets and Blue Chip Fund held two Section 4(2)
securities with an aggregate value of $3,197,529 representing .7% of the
Fund's net assets. These securities are valued as set forth in Note 1A.
This page intentionally left blank.
Financial Highlights
FIRST INVESTORS
The following table sets forth the per share operating performance data for a share outstanding,
total return, ratios to average net assets and other supplemental data for each fiscal year ended
September 30, except as otherwise indicated.
- -----------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
----------------------------------------------------------------------------------------
Less Distributions
Investment Operations from
------------------------------------- ----------------------
Net Asset Net Realized
Value, Net and Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized Total
of Period Income Investments Operations Income Gain Distributions
- -----------------------------------------------------------------------------------------------------
TOTAL RETURN FUND
- -----------------
Class A
- -------
2000 $14.34 $ .31 $ 2.29 $ 2.60 $ .27 $ .40 $ .67
2001 16.27 .26 (2.86) (2.60) .32 1.07 1.39
2002++ 12.28 .22 (1.59) (1.37) .32 -- .32
2003 10.59 .20 1.44 1.64 .21 -- .21
2004 12.02 .20 .96 1.16 .20 -- .20
2005(b) 12.98 .13 .55 .68 .14 -- .14
Class B
- -------
2000 14.17 .21 2.24 2.45 .17 .40 .57
2001 16.05 .18 (2.84) (2.66) .21 1.07 1.28
2002++ 12.11 .15 (1.59) (1.44) .21 -- .21
2003 10.46 .09 1.44 1.53 .13 -- .13
2004 11.86 .12 .94 1.06 .12 -- .12
2005(b) 12.80 .08 .54 .62 .09 -- .09
- -----------------------------------------------------------------------------------------------------
VALUE FUND+++
- -----------------
Class A
- -------
2000 $ 7.99 $ .13 $ 1.21 $ 1.34 $ .13 $ .60 $ .73
2001 8.60 .10 (2.10) (2.00) .11 .56 .67
2002++ 5.93 .11 (1.65) (1.54) .13 -- .13
2003 4.26 .08 .73 .81 .08 -- .08
2004 4.99 .07 .96 1.03 .07 -- .07
2005(b) 5.95 .04 .50 .54 .03 -- .03
Class B
- -------
2000 7.88 .08 1.18 1.26 .07 .60 .67
2001 8.47 .06 (2.07) (2.01) .06 .56 .62
2002++ 5.84 .07 (1.63) (1.56) .08 -- .08
2003 4.20 .05 .71 .76 .04 -- .04
2004 4.92 .03 .95 .98 .03 -- .03
2005(b) 5.87 .02 .48 .50 .01 -- .01
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
- ------------------------ --------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets** Waived or Assumed
Net Asset -------------------- ----------------------
Value, Net Assets Net Net Portfolio
End of Total End of Period Investment Investment Turnover
Period Return* (in millions) Expenses Income Expenses Income Rate
- -----------------------------------------------------------------------------------------------------------
TOTAL RETURN FUND
- -----------------
Class A
- -------
2000 $16.27 18.67% $120 1.33% 2.00% 1.58% 1.75% 118%
2001 12.28 (17.31) 121 1.37 2.02 1.62 1.77 130
2002++ 10.59 (11.44) 129 1.47 1.91 1.72 1.66 185
2003 12.02 15.58 177 1.52 1.72 1.77 1.47 80
2004 12.98 9.65 231 1.44 1.60 1.65 1.39 41
2005(b) 13.52 5.19 257 1.38+ 1.96+ 1.56+ 1.78+ 25
Class B
- -------
2000 16.05 17.79 16 2.03 1.30 2.28 1.05 118
2001 12.11 (17.82) 19 2.07 1.32 2.32 1.07 130
2002++ 10.46 (12.09) 22 2.17 1.21 2.42 .96 185
2003 11.86 14.71 28 2.22 1.02 2.47 .77 80
2004 12.80 8.92 36 2.14 .90 2.35 .69 41
2005(b) 13.33 4.84 37 2.08+ 1.26+ 2.26+ 1.08+ 25
- -----------------------------------------------------------------------------------------------------------
VALUE FUND+++
- -----------------
Class A
- -------
2000 $ 8.60 17.58% $187 1.31% 1.57% N/A N/A 46%
2001 5.93 (24.98) 149 1.37 1.47 N/A N/A 51
2002++ 4.26 (26.34) 99 1.51 1.93 N/A N/A 40
2003 4.99 19.04 126 1.67 1.69 N/A N/A 198
2004 5.95 20.57 185 1.48 1.21 N/A N/A 11
2005(b) 6.46 9.15 232 1.42+ 1.40+ N/A N/A 7
Class B
- -------
2000 8.47 16.77 32 2.01 .87 N/A N/A 46
2001 5.84 (25.46) 26 2.07 .77 N/A N/A 51
2002++ 4.20 (26.94) 17 2.21 1.23 N/A N/A 40
2003 4.92 18.26 19 2.37 .99 N/A N/A 198
2004 5.87 19.91 23 2.18 .51 N/A N/A 11
2005(b) 6.36 8.59 26 2.12+ .70+ N/A N/A 7
- -----------------------------------------------------------------------------------------------------------
Financial Highlights (continued)
FIRST INVESTORS
- -----------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
----------------------------------------------------------------------------------------
Less Distributions
Investment Operations from
------------------------------------- ----------------------
Net Asset Net Net Realized
Value, Investment and Unrealized Total from Net Net
Beginning Income Gain (Loss) on Investment Investment Realized Total
of Period (Loss) Investments Operations Income Gain Distributions
- -----------------------------------------------------------------------------------------------------
BLUE CHIP FUND
- --------------------
Class A
- -------
2000 $27.15 $(.09) $ 5.68 $ 5.59 $ -- $1.65 $1.65
2001 31.09 -- (8.64) (8.64) .01 3.30 3.31
2002 19.14 (.03) (4.55) (4.58) -- -- --
2003 14.56 -- 2.58 2.58 -- -- --
2004 17.14 .01 1.54 1.55 -- -- --
2005(b) 18.69 .08 1.24 1.32 -- -- --
Class B
- -------
2000 26.61 (.25) 5.50 5.25 -- 1.65 1.65
2001 30.21 (.16) (8.33) (8.49) -- 3.30 3.30
2002 18.42 (.16) (4.35) (4.51) -- -- --
2003 13.91 (.11) 2.46 2.35 -- -- --
2004 16.26 (.13) 1.48 1.35 -- -- --
2005(b) 17.61 -- 1.18 1.18 -- -- --
- -----------------------------------------------------------------------------------------------------
GROWTH & INCOME FUND
- --------------------
Class A
- -------
2000 $15.18 $ .01 $ 2.98 $ 2.99 $.01 $1.55 $1.56
2001 16.61 .06 (3.99) (3.93) .03 1.49 1.52
2002++ 11.16 .03 (2.31) (2.28) .05 -- .05
2003 8.83 .04 1.85 1.89 .04 -- .04
2004 10.68 .06 1.43 1.49 .03 -- .03
2005(b) 12.14 .07 .91 .98 .07 -- .07
Class B
- -------
2000 14.90 (.08) 2.90 2.82 -- 1.55 1.55
2001 16.17 (.01) (3.88) (3.89) -- 1.49 1.49
2002++ 10.79 (.04) (2.24) (2.28) -- -- --
2003 8.51 (.03) 1.78 1.75 -- -- --
2004 10.26 (.03) 1.39 1.36 -- -- --
2005(b) 11.62 .01 .88 .89 .03 -- .03
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
- ------------------------ --------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets** Waived or Assumed
-------------------- ----------------------
Net Asset Net Net
Value, Net Assets Investment Investment Portfolio
End of Total End of Period Income Income Turnover
Period Return* (in millions) Expenses (Loss) Expenses (Loss) Rate
- -----------------------------------------------------------------------------------------------------------
BLUE CHIP FUND
- --------------------
Class A
- -------
2000 $31.09 21.49% $615 1.27% (.31)% 1.34% (.38)% 125%
2001 19.14 (30.88) 445 1.35 (.02) 1.43 (.10) 117
2002 14.56 (23.93) 333 1.48 (.17) 1.58 (.27) 144
2003 17.14 17.72 383 1.56 -- 1.68 (.12) 111
2004 18.69 9.04 414 1.47 .03 1.58 (.08) 94
2005(b) 20.01 7.06 423 1.44+ .80+ 1.54+ .70+ 41
Class B
- -------
2000 30.21 20.60 105 1.97 (1.01) 2.04 (1.08) 125
2001 18.42 (31.33) 78 2.05 (.72) 2.13 (.80) 117
2002 13.91 (24.48) 57 2.18 (.87) 2.28 (.97) 144
2003 16.26 16.90 62 2.26 (.70) 2.38 (.82) 111
2004 17.61 8.30 61 2.17 (.67) 2.28 (.78) 94
2005(b) 18.79 6.70 57 2.14+ .10+ 2.24+ -- 41
- -----------------------------------------------------------------------------------------------------------
GROWTH & INCOME FUND
- --------------------
Class A
- -------
2000 $16.61 21.31% $494 1.28% .05% N/A N/A 142%
2001 11.16 (25.91) 383 1.34 .47 N/A N/A 168
2002++ 8.83 (20.53) 318 1.46 .33 N/A N/A 169
2003 10.68 21.49 400 1.52 .44 N/A N/A 70
2004 12.14 13.95 499 1.42 .53 N/A N/A 32
2005(b) 13.05 8.05 553 1.36+ 1.12+ N/A N/A 18
Class B
- -------
2000 16.17 20.49 107 1.98 (.65) N/A N/A 142
2001 10.79 (26.38) 82 2.04 (.23) N/A N/A 168
2002++ 8.51 (21.13) 65 2.16 (.37) N/A N/A 169
2003 10.26 20.56 76 2.22 (.26) N/A N/A 70
2004 11.62 13.26 83 2.12 (.17) N/A N/A 32
2005(b) 12.48 7.65 84 2.06+ .42+ N/A N/A 18
- -----------------------------------------------------------------------------------------------------------
Financial Highlights (continued)
FIRST INVESTORS
- -----------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
----------------------------------------------------------------------------------------
Less Distributions
Investment Operations from
------------------------------------- ----------------------
Net Asset Net Net Realized
Value, Investment and Unrealized Total from Net Net
Beginning Income Gain (Loss) on Investment Investment Realized Total
of Period (Loss) Investments Operations Income Gain Distributions
- -----------------------------------------------------------------------------------------------------
ALL-CAP GROWTH FUND
- -------------------
Class A
- -------
2001(a) $10.00 $(.05) $(3.42) $(3.47) -- -- --
2002 6.53 (.06) (1.14) (1.20) -- -- --
2003 5.33 (.06) 1.48 1.42 -- -- --
2004 6.75 (.07) 1.12 1.05 -- -- --
2005(b) 7.80 (.01) .24 .23 -- -- --
Class B
- -------
2001(a) 10.00 (.08) (3.43) (3.51) -- -- --
2002 6.49 (.10) (1.13) (1.23) -- -- --
2003 5.26 (.09) 1.44 1.35 -- -- --
2004 6.61 (.12) 1.10 .98 -- -- --
2005(b) 7.59 (.04) .24 .20 -- -- --
- -----------------------------------------------------------------------------------------------------
MID-CAP OPPORTUNITY FUND
- ------------------------
Class A
- -------
2000 $21.02 (.10) $ 8.02 $ 7.92 -- $2.28 $2.28
2001 26.66 (.05) (7.67) (7.72) -- 1.30 1.30
2002 17.64 (.13) (1.73) (1.86) -- -- --
2003 15.78 (.12) 3.52 3.40 -- -- --
2004 19.18 (.09) 3.62 3.53 -- -- --
2005(b) 22.71 (.02) 2.98 2.96 -- -- --
Class B
- -------
2000 20.35 (.20) 7.67 7.47 -- 2.28 2.28
2001 25.54 (.18) (7.32) (7.50) -- 1.30 1.30
2002 16.74 (.24) (1.63) (1.87) -- -- --
2003 14.87 (.23) 3.31 3.08 -- -- --
2004 17.95 (.23) 3.38 3.15 -- -- --
2005(b) 21.10 (.10) 2.77 2.67 -- -- --
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
- ------------------------ --------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets** Waived or Assumed
-------------------- ----------------------
Net Asset Net Net
Value, Net Assets Investment Investment Portfolio
End of Total End of Period Income Income Turnover
Period Return* (in millions) Expenses (Loss) Expenses (Loss) Rate
- -----------------------------------------------------------------------------------------------------------
ALL-CAP GROWTH FUND
- -------------------
Class A
- -------
2001(a) $ 6.53 (34.70)% $ 35 1.75%+ (.90)%+ 2.10%+ (1.25)%+ 84%
2002 5.33 (18.38) 44 1.75 (1.03) 1.98 (1.26) 138
2003 6.75 26.64 77 1.94 (1.15) 1.96 (1.17) 126
2004 7.80 15.56 130 1.68 (1.12) N/A N/A 75
2005(b) 8.03 2.95 149 1.56+ (.36)+ N/A N/A 51
Class B
- -------
2001(a) 6.49 (35.10) 8 2.45+ (1.60)+ 2.80+ (1.95)+ 84
2002 5.26 (18.95) 9 2.45 (1.73) 2.68 (1.96) 138
2003 6.61 25.67 14 2.64 (1.85) 2.66 (1.87) 126
2004 7.59 14.83 20 2.38 (1.82) N/A N/A 75
2005(b) 7.79 2.64 22 2.26+ (1.06)+ N/A N/A 51
- -----------------------------------------------------------------------------------------------------------
MID-CAP OPPORTUNITY FUND
- ------------------------
Class A
- -------
2000 $26.66 41.41% $120 1.42% (.52)% 1.67% (.77)% 180%
2001 17.64 (30.34) 109 1.51 (.27) 1.76 (.52) 123
2002 15.78 (10.55) 131 1.70 (.82) 1.95 (1.07) 112
2003 19.18 21.55 192 1.73 (.80) 1.97 (1.04) 37
2004 22.71 18.41 277 1.56 (.46) 1.73 (.63) 40
2005(b) 25.67 13.03 343 1.46+ (.20)+ 1.60+ (.34)+ 21
Class B
- -------
2000 25.54 40.46 24 2.12 (1.22) 2.37 (1.47) 180
2001 16.74 (30.84) 22 2.21 (.97) 2.46 (1.22) 123
2002 14.87 (11.17) 25 2.40 (1.52) 2.65 (1.77) 112
2003 17.95 20.71 35 2.43 (1.50) 2.67 (1.74) 37
2004 21.10 17.55 46 2.26 (1.16) 2.43 (1.33) 40
2005(b) 23.77 12.65 53 2.16+ (.90)+ 2.30+ (1.04)+ 21
- -----------------------------------------------------------------------------------------------------------
Financial Highlights (continued)
FIRST INVESTORS
- -----------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
----------------------------------------------------------------------------------------
Less Distributions
Investment Operations from
------------------------------------- ----------------------
Net Asset Net Net Realized
Value, Investment and Unrealized Total from Net Net
Beginning Income Gain (Loss) on Investment Investment Realized Total
of Period (Loss) Investments Operations Income Gain Distributions
- -----------------------------------------------------------------------------------------------------
SPECIAL SITUATIONS FUND
- --------------------------
Class A
- -------
2000 $23.40 $(.18) $ 9.81 $ 9.63 -- $1.21 $1.21
2001 31.82 (.18) (11.59) (11.77) -- 4.89 4.89
2002 15.16 (.19) (2.31) (2.50) -- -- --
2003 12.66 (.17) 3.14 2.97 -- -- --
2004 15.63 (.18) 1.39 1.21 -- -- --
2005(b) 16.84 (.06) 2.02 1.96 -- -- --
Class B
- -------
2000 22.62 (.33) 9.38 9.05 -- 1.21 1.21
2001 30.46 (.29) (11.00) (11.29) -- 4.89 4.89
2002 14.28 (.29) (2.15) (2.44) -- -- --
2003 11.84 (.25) 2.93 2.68 -- -- --
2004 14.52 (.30) 1.32 1.02 -- -- --
2005(b) 15.54 (.12) 1.86 1.74 -- -- --
- -----------------------------------------------------------------------------------------------------
FOCUSED EQUITY FUND
- -------------------
Class A
- -------
2000 $10.88 $(.08) $ (.42) $ (.50) $ -- -- $ --
2001 10.38 (.03) (2.63) (2.66) -- -- --
2002 7.72 (.07) (1.92) (1.99) -- -- --
2003 5.73 (.02) 1.52 1.50 -- -- --
2004 7.23 (.02) .62 .60 -- -- --
2005(b) 7.83 .04 .40 .44 .02 -- .02
Class B
- -------
2000 10.84 (.15) (.43) (.58) -- -- --
2001 10.26 (.09) (2.59) (2.68) -- -- --
2002 7.58 (.13) (1.86) (1.99) -- -- --
2003 5.59 (.07) 1.48 1.41 -- -- --
2004 7.00 (.08) .61 .53 -- -- --
2005(b) 7.53 .02 .38 .40 -- -- --
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
- ------------------------ --------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets** Waived or Assumed
-------------------- ----------------------
Net Asset Net Net
Value, Net Assets Investment Investment Portfolio
End of Total End of Period Income Income Turnover
Period Return* (in millions) Expenses (Loss) Expenses (Loss) Rate
- -----------------------------------------------------------------------------------------------------------
SPECIAL SITUATIONS FUND
- --------------------------
Class A
- -------
2000 $31.82 43.07% $276 1.41% (.68)% 1.60% (.87)% 161%
2001 15.16 (42.86) 164 1.54 (.94) 1.75 (1.15) 183
2002 12.66 (16.49) 138 1.69 (1.24) 1.93 (1.48) 153
2003 15.63 23.46 169 1.80 (1.26) 2.05 (1.51) 111
2004 16.84 7.74 190 1.63 (1.08) 1.86 (1.31) 119
2005(b) 18.80 11.64 206 1.56+ (.60)+ 1.78+ (.82)+ 86
Class B
- -------
2000 30.46 41.94 34 2.11 (1.38) 2.30 (1.57) 161
2001 14.28 (43.26) 21 2.24 (1.64) 2.45 (1.85) 183
2002 11.84 (17.09) 18 2.39 (1.94) 2.63 (2.18) 153
2003 14.52 22.63 20 2.50 (1.96) 2.75 (2.21) 111
2004 15.54 7.03 21 2.33 (1.78) 2.56 (2.01) 119
2005(b) 17.28 11.20 21 2.26+ (1.30)+ 2.48+ (1.52)+ 86
- -----------------------------------------------------------------------------------------------------------
FOCUSED EQUITY FUND
- -------------------
Class A
- -------
2000 $10.38 (4.60)% $ 75 1.62% (.76)% 1.52% (.66)% 178%
2001 7.72 (25.63) 51 1.75 (.35) N/A N/A 240
2002 5.73 (25.78) 38 1.83 (.90) N/A N/A 150
2003 7.23 26.18 48 1.99 (.35) N/A N/A 49
2004 7.83 8.30 49 1.85 (.30) N/A N/A 39
2005(b) 8.25 5.59 48 1.74+ 1.06+ N/A N/A 32
Class B
- -------
2000 10.26 (5.35) 18 2.32 (1.46) 2.22 (1.36) 178
2001 7.58 (26.12) 13 2.45 (1.05) N/A N/A 240
2002 5.59 (26.25) 9 2.53 (1.60) N/A N/A 150
2003 7.00 25.22 11 2.69 (1.05) N/A N/A 49
2004 7.53 7.57 11 2.55 (1.00) N/A N/A 39
2005(b) 7.93 5.37 10 2.44+ .36+ N/A N/A 32
- -----------------------------------------------------------------------------------------------------------
Financial Highlights (continued)
FIRST INVESTORS
- -----------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
----------------------------------------------------------------------------------------
Less Distributions
Investment Operations from
------------------------------------- ----------------------
Net Asset Net Net Realized
Value, Investment and Unrealized Total from Net Net
Beginning Income Gain (Loss) on Investment Investment Realized Total
of Period (Loss) Investments Operations Income Gain Distributions
- -----------------------------------------------------------------------------------------------------
GLOBAL FUND
- -----------
Class A
- -------
2000 $ 8.11 $(.02) $ .91 $ .89 -- $ .89 $ .89
2001 8.11 (.01) (2.13) (2.14) -- .76 .76
2002 5.21 (.01) (.96) (.97) -- -- --
2003 4.24 (.01) .93 .92 -- -- --
2004 5.16 (.01) .78 .77 -- -- --
2005(b) 5.93 -- .55 .55 -- -- --
Class B
- -------
2000 7.88 (.07) .88 .81 -- .89 .89
2001 7.80 (.06) (2.03) (2.09) -- .76 .76
2002 4.95 -- (.95) (.95) -- -- --
2003 4.00 (.04) .88 .84 -- -- --
2004 4.84 (.05) .73 .68 -- -- --
2005(b) 5.52 (.02) .51 .49 -- -- --
- -----------------------------------------------------------------------------------------------------
* Calculated without sales charges.
** Net of expenses waived or assumed by the investment adviser (Note 3).
+ Annualized
++ Prior to October 1, 2001, the Total Return Fund, Growth & Income
Fund, and Value Fund did not amortize premiums on debt securities. The
per share data and ratios prior to 2001 have not been restated. The
cumulative effect of this accounting change had no impact on the total
net assets of the Funds.
+++ Prior to December 31, 2002, known as Utilities Income Fund.
(a) For the period October 25, 2000 (commencement of operations) to
September 30, 2001.
(b) For the period October 1, 2004 to March 31, 2005.
See notes to financial statements
- -----------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
- ------------------------ --------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets** Waived or Assumed
-------------------- ----------------------
Net Asset Net Net
Value, Net Assets Investment Investment Portfolio
End of Total End of Period Income Income Turnover
Period Return* (in millions) Expenses (Loss) Expenses (Loss) Rate
- -----------------------------------------------------------------------------------------------------------
GLOBAL FUND
- -----------
Class A
- -------
2000 $ 8.11 11.73% $350 1.65% (.26)% N/A N/A 102%
2001 5.21 (28.87) 234 1.77 (.21) N/A N/A 116
2002 4.24 (18.62) 173 1.87 (.35) N/A N/A 125
2003 5.16 21.70 192 1.98 (.19) N/A N/A 112
2004 5.93 14.92 209 1.86 (.13) N/A N/A 105
2005(b) 6.48 9.27 223 1.77+ (.07)+ N/A N/A 61
Class B
- -------
2000 7.80 10.99 26 2.35 (.96) N/A N/A 102
2001 4.95 (29.42) 18 2.47 (.91) N/A N/A 116
2002 4.00 (19.19) 14 2.57 (1.05) N/A N/A 125
2003 4.84 21.00 15 2.68 (.89) N/A N/A 112
2004 5.52 14.05 15 2.56 (.83) N/A N/A 105
2005(b) 6.01 8.88 15 2.47+ (.77)+ N/A N/A 61
- -----------------------------------------------------------------------------------------------------------
Report of Independent Registered Public Accounting Firm
To the Shareholders and Boards of Directors/Trustees of
First Investors Series Fund
First Investors Series Fund II, Inc.
First Investors Global Fund, Inc.
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments of the Blue Chip Fund, Special
Situations Fund and Total Return Fund (each a series of First Investors
Series Fund), the All-Cap Growth Fund, Focused Equity Fund, Growth & Income
Fund, Mid-Cap Opportunity Fund and Value Fund (each a series of First
Investors Series Fund II, Inc.), and First Investors Global Fund, Inc. as
of March 31, 2005, the related statements of operations, the statements of
changes in net assets, and the financial highlights for each of the periods
indicated thereon. These financial statements and financial highlights are
the responsibility of the Funds' management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements and financial highlights are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
March 31, 2005, by correspondence with the custodian and brokers. Where
brokers have not replied to our confirmation requests, we have carried out
other appropriate auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of the Blue Chip Fund, Special Situations Fund, Total Return Fund, All-Cap
Growth Fund, Focused Equity Fund, Growth & Income Fund, Mid-Cap Opportunity
Fund, Value Fund, and Global Fund as of March 31, 2005, and the results of
their operations, changes in their net assets, and their financial
highlights for the periods presented, in conformity with accounting
principles generally accepted in the United States of America.
Tait, Weller & Baker
Philadelphia, Pennsylvania
May 2, 2005
FIRST INVESTORS EQUITY FUNDS
Directors/Trustees
- -----------------------
Robert M. Grohol
Kathryn S. Head
Rex R. Reed
Herbert Rubinstein
James M. Srygley
John T. Sullivan
Robert F. Wentworth
Officers
- -----------------------
Kathryn S. Head
President
Clark D. Wagner
Vice President 1
Matthew S. Wright
Vice President 2
Larry R. Lavoie
Chief Compliance Officer
Joseph I. Benedek
Treasurer
Mark S. Spencer
Assistant Treasurer
Carol Lerner Brown
Assistant Secretary
- -----------------------
1 First Investors Series Fund only
2 First Investors Series Fund II, Inc. only
FIRST INVESTORS EQUITY FUNDS
Shareholder Information
- -----------------------
Investment Adviser
First Investors Management Company, Inc.
95 Wall Street
New York, NY 10005
Subadviser (Special Situations Fund only)
Paradigm Capital Management, Inc.
Nine Elk Street
Albany, NY 12207
Subadviser (All-Cap Growth Fund,
Focused Equity Fund and Global Fund only)
Wellington Management Company, LLP
75 State Street
Boston, MA 02109
Underwriter
First Investors Corporation
95 Wall Street
New York, NY 10005
Custodian
The Bank of New York
One Wall Street
New York, NY 10286
Custodian (Global Fund only)
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
Transfer Agent
Administrative Data Management Corp.
Raritan Plaza I - 8th Floor
Edison, NJ 08837-3620
Legal Counsel
Kirkpatrick & Lockhart
Nicholson Graham LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
1818 Market Street
Philadelphia, PA 19103
It is the Funds' practice to mail only one copy of their annual and
semi-annual reports to all family members who reside in the same household.
Additional copies of the reports will be mailed if requested by any
shareholder in writing or by calling 800-423-4026. The Funds will ensure
that separate reports are sent to any shareholder who subsequently changes
his or her mailing address.
This report is authorized for distribution only to existing shareholders,
and, if given to prospective shareholders, must be accompanied or preceded
by the Funds' prospectus.
The Statement of Additional Information includes additional information
about the Funds' directors/trustees and is available without charge, upon
request in writing or by calling 800-423-4026.
A description of the policies and procedures that the Funds use to vote
proxies relating to a portfolio's securities is available, without charge,
upon request by calling toll free 800-423-4026 or can be viewed online or
downloaded from the EDGAR database on the Securities and Exchange
Commission's ("SEC") internet website at http://www.sec.gov. In addition,
information regarding how the Funds voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30, is
available, without charge, upon request in writing or by calling
800-423-4026 and on the SEC's internet website at http://www.sec.gov.
The Funds file their complete schedule of portfolio holdings with the SEC
for the first and third quarters of each fiscal year on Form N-Q. The
Funds' Form N-Q is available on the SEC's website at http://www.sec.gov;
and may also be reviewed and copied at the SEC's Public Reference Room in
Washington, DC. Information on the operation of the Public Reference Room
may be obtained by calling 800-SEC-0330. The schedule of portfolio holdings
is also available, without charge, upon request in writing or by calling
800-423-4026.
Item 2. Code of Ethics
Not applicable
Item 3. Audit Committee Financial Expert
Not applicable
Item 4. Principal Accountant Fees and Services
Not applicable
Item 5. Audit Committee of Listed Registrants
Not applicable
Item 6. Schedule of Investments
Schedule of Investments is included as part of
the Report to Stockholders filed under Item 1
of this Form.
Item 7. Disclosure of Proxy Voting Policies & Procedures for
Closed-End Management Investment Companies
Not applicable
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Companies and Affiliated Purchasers
Not applicable
Item 10. Submission of Matters to a Vote of Security Holders
The Nominating and Compensation Committee (the "Committee") of the Board of
Directors/Trustees of the First Investors Family of Funds (the "Board") was
established in November 2004. The Committee is comprised of all the
Independent Directors/Trustees. The Committee is responsible for, among
other things, selecting and nominating persons to serve as Independent
Directors/Trustees on the Board, evaluating candidates' qualifications,
reviewing the composition of the Board to determine whether it may be
appropriate to add other Independent Directors/Trustees, and reviewing
director/trustee compensation. When the Board has, or expects to have,
vacancies, the Committee shall consider shareholder recommendations for
nominations to fill such vacancies if such recommendations are submitted in
writing and addressed to the Committee at the Funds' offices at: First
Investors Funds, 95 Wall Street, New York, NY 10005.
Item 11. Controls and Procedures
(a) The Registrant's Principal Executive Officer and Principal
Financial Officer have concluded that the Registrant's disclosure controls
and procedures (as defined in Rule 30a-3(c) under the Investment Company
Act of 1940, as amended) are effective, based on their evaluation of these
disclosure controls and procedures as of a date within 90 days of the
filing date of this report.
(b) There were no significant changes in the Registrant's internal
controls or in other factors that could significantly affect these controls
subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Item 12. Exhibits
(a) Code of Ethics - Previously filed on the Registrant's Form N-CSR
on December 8, 2004
(b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002 - Filed herewith
(c) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 - Filed herewith
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the Registrant have duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
First Investors Series Fund
First Investors Series Fund II, Inc.
First Investors Global Fund, Inc.
(Registrant)
By /S/ KATHRYN S. HEAD
Kathryn S. Head
President and Principal Executive Officer
Date: June 8, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed below by
the following persons on behalf of the Registrant and in the capacities and
on the dates indicated.
First Investors Series Fund
First Investors Series Fund II, Inc.
First Investors Global Fund, Inc.
(Registrant)
By /S/ JOSEPH I. BENEDEK
Joseph I. Benedek
Treasurer and Principal Financial Officer
Date: June 8, 2005