UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE 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
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: SEPTEMBER 30, 2005
Item 1. Reports to Stockholders
The 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
ANNUAL REPORT
September 30, 2005
Portfolio Managers' Letter
FIRST INVESTORS TOTAL RETURN FUND
Dear Investor:
This is the annual report for the First Investors Total Return Fund for the
fiscal year ended September 30, 2005. During the period, the Fund's return
on a net asset value basis was 9.3% for Class A shares and 8.5% for Class B
shares, including dividends of 24.5 cents per share on Class A shares and
15.4 cents per share on Class B shares.
The Fund's strategy remains to allocate its portfolio among stocks, bonds
and cash equivalents, with at least 50% in stocks and at least 25% in bonds.
During the fiscal year, the Fund maintained a 65.1% average equity
allocation, and an average bond allocation of 29.7%.
Performance of the equities portion of the portfolio was impacted by the
continued strength in the general economy, the rise in energy prices, the
solid performance of the equity markets and strong stock selection across
multiple sectors. Fund performance on an absolute basis was largely the
result of the Fund's investments in the energy, technology, consumer
discretionary and industrials sectors. In addition, the Fund's multi-cap
strategy aided performance, as mid- and small-cap equities outperformed
their larger capitalization counterparts during the review period. Stock
selection benefited investments in almost all sectors, most notably in the
consumer discretionary, energy, industrials and materials areas. The Fund's
investments in financial services firms detracted from results.
Approximately 60% of the bond allocation was invested in high-grade
corporate bonds, 25% in mortgage-backed bonds, and the remainder in U.S.
agency and municipal bonds. With the exception of municipal bonds, which
outperformed the bond market in general, returns across bond sectors were
fairly uniform.
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
/s/ CLARK D. WAGNER
Clark D. Wagner
Director of Fixed Income
October 31, 2005
Understanding Your Fund's Expenses
FIRST INVESTORS EQUITY FUNDS
As a mutual fund shareholder, you incur two types of costs: (1) transaction
costs, including a sales charge (load) on purchase payments (on Class A
shares only), a contingent deferred sales charge on redemptions (on Class B
shares only); and (2) ongoing costs, including advisory fees; distribution
and service fees (12b-1); and other expenses. This example is intended to
help you understand your ongoing costs (in dollars) of investing in the
Funds and to compare these costs with the ongoing costs of investing in
other mutual funds.
The examples are based on an investment of $1,000 in each Fund at the
beginning of the period, April 1, 2005, and held for the entire six-month
period ended September 30, 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 Expenses Example:
These amounts help you to estimate the actual expenses that you paid over
the period. The "Ending Account Value" shown is derived from the Fund's
actual return, and the "Expenses Paid During Period" shows the dollar amount
that would have been paid by an investor who started with $1,000 in the
Fund. You may use the information here, together with the amount you
invested, to estimate the expenses that you paid over the period.
To estimate the expenses you paid on your account during this period, simply
divide your ending account value by $1,000 (for example, an $8,600 account
value divided by $1,000 = 8.60), then multiply the result by the number
given for your Fund under the heading "Expenses Paid During Period".
Hypothetical Expenses Example:
These amounts provide information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio for Class A
and Class B shares, and an assumed rate of return of 5% per year before
expenses, which is not the Fund's actual return. The hypothetical account
values and expenses may not be used to estimate the actual ending account
balance or expenses you paid for the period. You may use this information to
compare the ongoing costs of investing in the Fund and other funds. To do
so, compare this 5% hypothetical example with the 5% hypothetical examples
that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight and
help you compare your ongoing costs only and do not reflect any transaction
costs, such as front-end or contingent deferred sales charges (loads).
Therefore, the hypothetical expenses example is useful in comparing ongoing
costs only and will not help you determine the relative total costs of
owning different funds. In addition, if these transaction costs were
included, your costs would have been higher.
Board Considerations of Advisory Contracts and Fees
FIRST INVESTORS EQUITY FUNDS
At a meeting held on May 19, 2005 ("May Meeting"), the Boards of Directors
or Trustees ("Board"), as the case may be, including a majority of the
non-interested or independent Directors/Trustees (hereinafter, "Directors"),
approved the renewal of the investment advisory agreements (each an
"Advisory Agreement") between First Investors Management Company, Inc.
("FIMCO") and each of the following funds (each, a "Fund" and collectively,
the "Funds"): Blue Chip Fund, Growth & Income Fund, All-Cap Growth Fund,
Focused Equity Fund, Mid-Cap Opportunity Fund, Special Situations Fund,
Total Return Fund, Value Fund and Global Fund. In addition, at the May
Meeting, the Board, including a majority of non-interested Directors,
approved the renewal of the sub-advisory agreement (each a "Sub-Advisory
Agreement") between FIMCO and Wellington Management Company, LLP ("WMC")
with respect to the All-Cap Growth Fund, Focused Equity Fund and Global Fund
(collectively, the "Sub-Advised Funds"). In reaching its decisions, the
Board reviewed and considered information furnished and discussed throughout
the year at regularly scheduled Board meetings as well as information
provided specifically in relation to the renewal of the Advisory Agreements
and Sub-Advisory Agreements for the May Meeting.
Information furnished at Board meetings throughout the year included FIMCO's
analysis of each Fund's investment performance, presentations given by
FIMCO's Director of Equities and representatives of WMC and various reports
on compliance and other services provided by FIMCO and its affiliates. In
response to specific requests from the Directors in connection with the May
Meeting, FIMCO furnished, and the Board reviewed, information concerning a
variety of aspects of its operations, including: (1) the nature, extent and
quality of services provided by FIMCO and its affiliates to the Funds,
including investment advisory and administrative services to the Funds; (2)
the investment performance of each Fund, including comparisons to a group of
mutual funds based on the category assigned to the Fund, and data published,
by Lipper, Inc. ("Peer Group"); (3) the management fees paid by each Fund
and total expense ratios of each Fund compared to the management fees and
total expense ratios of each Fund's Peer Group; (4) the costs of providing
services to each Fund and the profits realized by FIMCO and its affiliate,
Administrative Data Management Corporation ("ADM"), the Funds' affiliated
transfer agent, from the relationship with each Fund and, with respect to
the Sub-Advised Funds, the fact that FIMCO pays WMC a sub-advisory fee for
its services to those Funds out of the advisory fee received by FIMCO; and
(5) any "fall out" or ancillary benefits enjoyed by FIMCO or its affiliates
as a result of the relationship with each Fund. In addition to evaluating,
among other things, the written information provided by FIMCO, the Board
also evaluated the answers to questions posed by the Board to
representatives of FIMCO at the May Meeting.
Board Considerations of Advisory Contracts and Fees (continued)
FIRST INVESTORS EQUITY FUNDS
In addition, in response to specific requests from the Directors in
connection with the May Meeting, WMC furnished, and the Board reviewed,
information concerning a variety of aspects of its operations, including:
(1) the nature, extent and quality of services provided by WMC to the
Sub-Advised Funds; (2) the investment performance of each Sub-Advised Fund,
including comparisons to each Fund's Peer Group; (3) the sub-advisory fee
rates charged by WMC, a comparison of those fee rates to the fee rates
charged by WMC for providing sub-advisory services to other investment
companies or accounts, as applicable, with objectives similar to the
Sub-Advised Funds and a comparison of the fee rates charged by other
sub-advisers to investment companies in the same Peer Group as the
Sub-Advised Funds; (4) the overall profitability of WMC; and (5) any "fall
out" or ancillary benefits enjoyed by WMC as a result of the relationship
with each Sub-Advised Fund.
In considering the information and materials described above, the Directors
received assistance from and met separately with independent counsel.
Although the Advisory Agreements for all of the Funds and the Sub-Advisory
Agreements for the Sub-Advised Funds were considered at the same Board
meeting, the Directors addressed each Fund separately during the May
Meeting. In view of the broad scope and variety of factors and information,
the Directors did not find it practicable to, and did not, assign relative
weights to the specific factors considered in reaching their conclusions and
determinations to approve the continuance of the Advisory Agreements and
Sub-Advisory Agreements. Rather, the approval determinations were made on
the basis of each Director's business judgment after consideration of all of
the factors taken in their entirety. Although not meant to be all-inclusive,
the following discusses some of the factors relevant to the Board's
decisions to approve the continuance of the Advisory Agreements and
Sub-Advisory Agreements.
Nature, Extent and Quality of Services
In examining the nature, extent and quality of the services provided by
FIMCO, the Board recognized that FIMCO is dedicated to providing investment
management services exclusively to the Funds and the other funds in the
First Investors fund complex and that, unlike many other mutual fund
managers, FIMCO does not provide management services to hedge funds, pension
funds or separately managed accounts. As a result, the Directors considered
that FIMCO's personnel devote substantially all of their time to serving the
funds in the First Investors fund complex, and emphasized that FIMCO's
senior management sets a tone for the organization that is aimed at the
protection of Fund shareholders and that this focus permeates the entire
organization. The Board noted that FIMCO has undertaken extensive
responsibilities as manager of the Funds, including: (i) the provision of
investment advice to the Funds; (ii) implementing policies and procedures
designed to ensure compliance with each
Fund's investment objectives and policies; (iii) the review of brokerage
arrangements; (iv) oversight of general portfolio compliance with applicable
laws; (v) the provision of certain administrative services to the Funds,
including fund accounting; and (vi) the implementation of Board directives
as they relate to the Funds. The Board also acknowledged that FIMCO has
devoted substantial time and resources to ensure that the Funds and FIMCO
are in compliance with a wide array of new regulatory initiatives that have
been aimed at mutual funds and their service providers. With regard to
compliance, the Board noted that FIMCO's and the Funds' overall compliance
records were good. The Board also noted that FIMCO had made changes to
portfolio managers, strengthened portfolio manager teams and added to its
in-house research and analytical capabilities in response to previous
discussions with the Board.
The Board also considered the nature, extent and quality of the services
provided to the Funds by FIMCO's affiliates, including transfer agency and
distribution services. The Board took into account the fact that ADM is
dedicated to providing transfer agency services exclusively to the Funds and
the other funds in the First Investors fund complex. As a result, ADM can
tailor its processes and services to satisfy the needs of the Funds'
shareholder base. The Board noted that the Funds' shares are distributed
primarily through First Investors Corporation ("FIC"), which is an affiliate
of FIMCO.
Furthermore, the Board considered the nature, extent and quality of the
investment management services provided by WMC to the Sub-Advised Funds over
both the short and long term and the organizational depth and stability of
WMC.
Based on the totality of the information considered, the Directors concluded
that the Funds were likely to benefit from the nature, extent and quality of
FIMCO's and WMC's services, as applicable, as well as the services of
FIMCO's affiliates, and that FIMCO and its affiliates as well as WMC have
the ability to continue to provide these services based on their respective
experience, operations and resources.
Investment Performance
The Board placed significant emphasis on the investment performance of each
of the Funds. While consideration was given to performance reports and
discussions held at prior Board meetings, particular attention was given to
the performance reports prepared by FIMCO and WMC specifically for the May
Meeting. In particular, the Directors reviewed the performance of the Funds
for each of the past five calendar years and gave more weight to each Fund's
performance over the most recent calendar year ("1-year period") and average
performance over the most recent three calendar year period ("3-year
period"). In this regard, the Board considered the performance of each Fund
on a percentile and quintile basis as compared to its Peer Group. In
reviewing this data, the Board particularly focused on whether a Fund's
Board Considerations of Advisory Contracts and Fees (continued)
FIRST INVESTORS EQUITY FUNDS
performance was in the top three quintiles versus the Fund's Peer Group for
the 3-year period. On a Fund-by-Fund basis, the performance reports
indicated, and the Board noted, that:
* Growth & Income Fund, Special Situations Fund, Total Return Fund and
Global Fund were in the third quintile of their respective Peer Group for
both the 1-year period and 3-year period. The Board also considered the
recent appointment of a sub-adviser for the Special Situations Fund,
Paradigm Capital Management, Inc., to enhance performance.
* All-Cap Growth Fund and Value Fund were in the second highest quintile of
their respective Peer Group for both the 1-year period and 3-year period.
* Mid-Cap Opportunity Fund was in the second highest quintile of its Peer
Group for the 1-year period and the third quintile for the 3-year period.
With regard to Blue Chip Fund, the performance report showed that the Fund
was in the fourth quintile of its Peer Group for both the 1-year period and
3-year period. The Board considered the fact that a new portfolio manager
had been assigned to the Blue Chip Fund in May of 2005 to be a favorable
development, and was pleased with management's efforts to address Fund
performance. The Board expressed its intention to continue to closely
monitor the Fund's performance in concert with FIMCO.
With regard to Focused Equity Fund, the performance report showed that the
Fund was in the last quintile of its Peer Group for the 1-year period and
the fourth quintile for the 3-year period. However, in reviewing the Focused
Equity Fund's performance compared to its Peer Group, the Board noted that
the Fund had delivered above average returns for two of the last five
calendar years. Furthermore, the Board noted that WMC had assigned a new
portfolio manager for the Fund on August 31, 2002 and that the Fund's
performance since that time through March 31, 2005 fell within the third
quintile of its Peer Group. The Board was encouraged by the Fund's
performance over this time period; considered the recent shift in strategy
with regard to the market capitalization of the Fund's portfolio securities
to be a positive development; and expressed confidence in the current
portfolio manager. The Board also expressed its intention to continue to
closely monitor the Fund's performance in concert with FIMCO.
Fund Expenses, Costs of Services, Economies of Scale and Related Benefits
Management Fees and Expenses. The Board gave substantial consideration to
the fees payable under each Fund's Advisory Agreement as well as under the
Sub-Advisory Agreements for the Sub-Advised Funds. The Board reviewed
reports prepared by FIMCO comparing each Fund's effective management fee
rates, operating expense ratios, and total expense ratios to its Peer Group.
The Board also noted the
effect of the management fee waivers in place for the Blue Chip Fund,
Mid-Cap Opportunity Fund, Special Situations Fund and Total Return Fund
during the periods presented, and discussed with FIMCO whether the fee
schedules should be modified in light of these fee waivers. With regard to
the effective management fee rates for the 2004 fiscal year, on a
Fund-by-Fund basis, the Board noted that:
* The level of management fee rates for Blue Chip Fund, Growth & Income
Fund, All-Cap Growth Fund, Focused Equity Fund, Total Return Fund, Value
Fund, Mid-Cap Opportunity Fund and Special Situations Fund, taking into
account the fee waivers (as applicable), were either lower than or generally
comparable (within 10%) to their Peer Group median. The recent appointment
of Paradigm Capital Management, Inc. as sub-adviser of Special Situations
Fund is at a substantial expense to FIMCO.
* The level of management fee rate for Global Fund was higher (by more than
10%) than its Peer Group median.
In considering the sub-advisory fee rates charged by and costs and
profitability of WMC with regard to the Sub-Advised Funds, the Board noted
that FIMCO pays WMC a sub-advisory fee from its own advisory fee rather than
each Fund paying WMC a fee directly. WMC provided, and the Board reviewed,
information comparing the fees charged by WMC for services to the
Sub-Advised Funds versus the fees charged by WMC to other comparable
investment companies or accounts, as applicable, as well as a comparison of
fees charged by other sub-advisers to investment companies in the same Peer
Group as the Sub-Advised Funds. Based on a review of this information, the
Board noted that the fees charged by WMC for services to each Sub-Advised
Fund appeared comparable to the fees WMC charges to such other investment
companies or accounts after taking into consideration the assets under
management by WMC for each of the Sub-Advised Funds and that the fees
charged by WMC appeared comparable to fees charged by other sub-advisers to
investment companies in the same Peer Group as the Sub-Advised Funds.
With regard to overall expense ratios, the Board noted that each Fund's
total expense ratio (Class A Shares) for the most recent calendar year,
taking into account FIMCO's expense limitations (as applicable), was higher
than the median of its respective Peer Group. The Board acknowledged the
effect on the Funds' total operating expense ratios of transfer agency fees
due to the small average account size of the Funds versus the industry
average account size. The Board further acknowledged the nature and quality
of the services provided by the Funds' transfer agent given the Funds'
shareholder base, which is largely composed of investors who maintain
retirement accounts and those who maintain small account balances. In
addition, management explained, and the Board considered, the benefits to
the Funds from investment by shareholders
Board Considerations of Advisory Contracts and Fees (continued)
FIRST INVESTORS EQUITY FUNDS
who maintain retirement accounts in the Funds. Furthermore, the Board
recognized management's efforts to control operating expenses, noting that
each Fund's total expense ratio had declined from the previous calendar
year.
Profitability. The Board reviewed the materials it received from FIMCO
regarding its revenues and costs in providing investment management and
certain administrative services to the Funds. In particular, the Board
considered the detailed analysis of FIMCO's profitability with respect to
each Fund, calculated for the year ended December 31, 2004, as well as
profitability information relating to the past five calendar years. The
Board also considered FIMCO's expectation that its fixed costs will increase
in the future due to, among other things, new regulatory requirements. In
reviewing the profitability information, the Directors also considered the
"fall-out" or ancillary benefits that may accrue to FIMCO and its affiliates
as a result of their relationship with the Funds, which are discussed below.
The Directors recognized that, as a business matter, FIMCO was entitled to
earn reasonable profits for its services to the Funds.
Economies of Scale. With respect to whether economies of scale are realized
by FIMCO as a Fund's assets increase and the extent to which any economies
of scale are reflected in the level of management fee rates charged, the
Board considered that the Advisory Agreement for each Fund currently
includes "breakpoints" (i.e., reductions in the management fee rate as
assets increase) to account for management economies of scale. The Board
noted that Blue Chip Fund, Growth & Income Fund, Mid-Cap Opportunity Fund,
Special Situations Fund and Total Return Fund have each reached an asset
size at which the Fund and its shareholders are benefiting from reduced
management fee rates. With regard to All-Cap Growth Fund, Focused Equity
Fund, Value Fund and Global Fund, the Board recognized that, although these
Funds have not reached a size at which they can take advantage of the
breakpoints contained in their fee schedule, each schedule is structured so
that when the assets of these Funds grow, economies of scale may be shared
for the benefit of shareholders.
"Fall Out" or Ancillary Benefits. The Board considered the "fall-out" or
ancillary benefits that may accrue to FIMCO and WMC as a result of their
relationship with the Funds. In that regard, the Board noted that FIMCO and
WMC engage in soft dollar transactions and that the Funds' brokerage
transactions may be directed to certain brokers to obtain research and other
services, which may be used in servicing all funds in the First Investors
fund complex or other clients of WMC, as applicable. However, the Board
noted that FIMCO and WMC must select brokers based on each Fund's
requirements for seeking best execution. The Board also considered
information relating to ADM's fees and profitability and the income received
by FIC and FIMCO's affiliated bank as a result of FIMCO's management of the
Funds. After
review of this information, the Board concluded that the benefits accruing
to FIMCO and its affiliates as well as WMC by virtue of their relationship
to the applicable Funds are fair and reasonable.
After evaluation of the comparative performance, fee and expense information
and the profitability, ancillary benefits and other considerations as
described above, and in light of the nature, extent and quality of services,
including any applicable non-management services, to be provided by FIMCO
and WMC, the Board concluded that the level of fees paid to FIMCO with
respect to each Fund and WMC with respect to each Sub-Advised Fund is
reasonable.
* * *
In summary, based on the various considerations discussed above, the Board
determined that approval of the Advisory Agreement with respect to each Fund
and the Sub-Advisory Agreement with respect to each Sub-Advised Fund was in
the best interests of the applicable Fund. As a result, the Board, including
a majority of the independent Directors, approved each Advisory Agreement
and Sub-Advisory Agreement.
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 costs of other mutual
funds. Please refer to page 2 for a detailed explanation of the information
presented in these examples.
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Beginning Ending
Account Account Expenses Paid
Value Value During Period
Expense Example - Class A Shares (4/1/05) (9/30/05) (4/1/05-9/30/05)*
- ----------------------------------------------------------------------------------------------
Actual $1,000.00 $1,038.52 $7.26
Hypothetical
(5% annual return before expenses) $1,000.00 $1,017.95 $7.18
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Expense Example - Class B Shares
Actual $1,000.00 $1,034.86 $10.81
Hypothetical
(5% annual return before expenses) $1,000.00 $1,014.44 $10.71
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* 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 183/365 (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:)
Financials 17.6%
Consumer Discretionary 10.8%
Industrials 10.6%
Information Technology 10.4%
Health Care 8.5%
Consumer Staples 8.0%
Mortgage-Backed Certificates 7.2%
Energy 5.9%
Materials 4.8%
U.S. Government Agency Obligations 3.9%
Portfolio holdings and allocations are subject to change. Percentages are as
of September 30, 2005, and are based on the total market value of
investments.
Cumulative Performance Information
FIRST INVESTORS TOTAL RETURN FUND
Comparison of change in value of $10,000 investment in the First Investors
Total Return Fund (Class A shares), the Merrill Lynch U.S. Corporate &
Government Master Index and the Standard & Poor's 500 Index.
First Investors Total Return Fund
Graph Plot Points
for the periods Ended 9/30/05
Merrill Lynch
Total Return S&P 500 U.S Corporate and Government
Fund Index Master Index
Dec-95 $ 9,425 $10,000 $10,000
Dec-96 10,426 12,296 10,291
Dec-97 12,311 16,398 11,297
Sep-98 12,898 17,382 12,346
Sep-99 14,381 22,214 12,163
Sep-00 17,066 25,164 12,978
Sep-01 14,113 18,465 14,718
Sep-02 12,499 14,682 16,059
Sep-03 14,447 18,264 17,057
Sep-04 15,841 20,797 17,625
Sep-05 17,306 23,345 18,104
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.25% 2.98%
Five Years 0.28% (0.90%)
Ten Years 6.77% 6.15%
Class B Shares
One Year 8.49% 4.49%
Five Years (0.42%) (0.82%)
Ten Years 6.03% 6.03%
The graph compares a $10,000 investment in the First Investors Total
Return Fund (Class A shares) beginning 12/31/95 with theoretical
investments in the Merrill Lynch Corporate & Government Master Index and
the Standard & Poor's 500 Index (the "Indices"). The Merrill Lynch U.S.
Corporate & Government Master Index tracks the performance of U.S.
dollar-denominated investment grade U.S. Government and corporate public
debt issued in the U.S. domestic bond market, excluding collateralized
products such as Mortgage Pass-Through and Assets Backed securities.
Qualifying bonds have at least one year to maturity, a fixed coupon
schedule and minimum amount outstanding of $1 billion for U.S. Treasuries
and $150 million for all other securities. The Standard & Poor's 500 Index
is an unmanaged capitalization-weighted index of 500 stocks designed to
measure performance of the broad domestic economy through changes in the
aggregate market value of such stocks, which represent all major
industries. It is not possible to invest directly in these Indices. In
addition, the Indices do not take into account fees and expenses that an
investor would incur in purchasing securities in these Indices. For
purposes of the graph and the accompanying table, unless otherwise
indicated, it has been assumed that the maximum sales charge was deducted
from the initial $10,000 investment in the Fund and all dividends and
distributions were reinvested. Class B shares performance may be greater
than or less than that shown in the line graph above for Class A shares
based on differences in sales loads and fees paid by shareholders
investing in the different classes.
* Average Annual Total Return figures (for the periods ended 9/30/05)
include the reinvestment of all dividends and distributions. "N.A.V. Only"
returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of 5.75%
(prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns are adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). During the periods shown, some of the
expenses of the Fund were waived or assumed. If such expenses had been paid
by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Return
for One Year, Five Years and Ten Years would have been 2.81%, (1.13%) and
5.90%, respectively. The Class B "S.E.C. Standardized" Average Annual Total
Return for One Year, Five Years and Ten Years would have been 4.32%, (1.04%)
and 5.78%, respectively. Results represent past performance and do not
indicate future results.The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than the original cost. Merrill Lynch U.S. Corporate &
Government Master Index figures are from Merrill Lynch & Co., Standard &
Poor's 500 Index figures are from Standard & Poor's and all other figures
are from First Investors Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS TOTAL RETURN FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--64.4%
Consumer Discretionary--10.4%
30,800 Applebee's International, Inc. $637,252 $20
64,800 Blockbuster, Inc. - Class "A" 307,800 10
57,600 Claire's Stores, Inc. 1,389,888 44
61,500 Clear Channel Communications, Inc. 2,022,735 63
75,700 * Cost Plus, Inc. 1,373,955 43
70,700 Dollar General Corporation 1,296,638 41
1,500 * DSW, Inc. - Class "A" 31,800 1
26,800 * Eddie Bauer Holdings, Inc. 659,950 21
15,500 Genuine Parts Company 664,950 21
18,100 Harley-Davidson, Inc. 876,764 27
33,300 * Helen of Troy, Ltd. 687,312 22
36,900 Home Depot, Inc. 1,407,366 44
16,900 J.C. Penney Company, Inc. (Holding Co.) 801,398 25
30,800 Kenneth Cole Productions, Inc. - Class "A" 840,532 26
115,100 Leggett & Platt, Inc. 2,325,020 73
50,400 * Lincoln Educational Services Corporation 594,216 19
64,500 McDonald's Corporation 2,160,105 68
53,800 Movado Group, Inc. 1,007,136 32
69,500 Orient-Express Hotels, Ltd. 1,975,190 62
23,500 Oxford Industries, Inc. 1,060,320 33
31,900 Polo Ralph Lauren Corporation - Class "A" 1,604,570 50
84,600 * Prestige Brands Holdings, Inc. 1,042,272 33
69,200 RadioShack Corporation 1,716,160 54
15,400 Ross Stores, Inc. 364,980 11
45,100 Russell Corporation 633,204 20
19,900 Sherwin-Williams Company 876,993 27
36,900 * Steiner Leisure Ltd. 1,253,493 39
27,900 * Timberland Company - Class "A" 942,462 29
61,500 * Tommy Hilfiger Corporation 1,067,025 33
46,100 Viacom, Inc. - Class "B" 1,521,761 48
- ----------------------------------------------------------------------------------------------------------------------
33,143,247 1,039
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--4.3%
30,800 Altria Group, Inc. 2,270,268 71
84,300 Avon Products, Inc. 2,276,100 71
15,300 Coca-Cola Company 660,807 21
1,000 * Diamond Foods, Inc. 17,100 1
19,500 Estee Lauder Companies, Inc. - Class "A" 679,185 21
23,100 * Herbalife, Ltd. 696,234 22
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples (continued)
14,800 Kimberly-Clark Corporation $881,044 $28
88,800 Nu Skin Enterprises, Inc. - Class "A" 1,691,640 53
15,300 PepsiCo, Inc. 867,663 27
23,100 Procter & Gamble Company 1,373,526 43
27,335 Tootsie Roll Industries, Inc. 867,886 27
23,000 Wal-Mart Stores, Inc. 1,007,860 32
22,200 WD-40 Company 588,522 18
- ----------------------------------------------------------------------------------------------------------------------
13,877,835 435
- ----------------------------------------------------------------------------------------------------------------------
Energy--5.9%
18,400 Anadarko Petroleum Corporation 1,761,800 55
61,500 Chesapeake Energy Corporation 2,352,375 74
24,600 ConocoPhillips 1,719,786 54
35,300 ExxonMobil Corporation 2,242,962 70
5,093 Marathon Oil Corporation 351,060 11
24,600 Noble Corporation 1,684,116 53
5,000 * Petroleum Helicopters, Inc. - Non Voting Shares 155,100 5
30,500 Sasol, Ltd. (ADR) 1,180,045 37
46,000 Suncor Energy, Inc. 2,784,380 87
18,300 * Swift Energy Company 837,225 26
36,800 * Transocean, Inc. 2,256,208 71
36,866 XTO Energy, Inc. 1,670,767 52
- ----------------------------------------------------------------------------------------------------------------------
18,995,824 595
- ----------------------------------------------------------------------------------------------------------------------
Financials--12.1%
15,400 American Express Company 884,576 28
27,600 American International Group, Inc. 1,710,096 54
60,706 Bank of America Corporation 2,555,723 80
45,900 Citigroup, Inc. 2,089,368 66
61,500 Colonial BancGroup, Inc. 1,377,600 43
30,500 Comerica, Inc. 1,796,450 56
74,000 Doral Financial Corporation 967,180 30
18,500 Endurance Specialty Holdings, Ltd. 631,035 20
15,400 Fannie Mae 690,228 22
40,000 Independence Community Bank Corporation 1,363,600 43
47,700 JPMorgan Chase & Company 1,618,461 51
13,000 Lehman Brothers Holdings, Inc. 1,514,240 47
46,500 MBNA Corporation 1,145,760 36
32,300 Merrill Lynch & Company, Inc. 1,981,605 62
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS TOTAL RETURN FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Financials (continued)
49,400 Montpelier Re Holdings, Ltd. $1,227,590 $38
27,700 Morgan Stanley 1,494,138 47
27,700 National City Corporation 926,288 29
69,900 New York Community Bancorp, Inc. 1,146,360 36
76,900 NewAlliance Bancshares, Inc. 1,125,816 35
69,032 North Fork Bancorporation, Inc. 1,760,316 55
23,000 Plum Creek Timber Company, Inc. (REIT) 871,930 27
12,200 Safeco Corporation 651,236 20
30,600 South Financial Group, Inc. 821,304 26
61,500 Sovereign Bancorp, Inc. 1,355,460 43
46,100 U.S. Bancorp 1,294,488 41
26,945 U.S.B. Holding Company, Inc. 614,346 19
30,900 Wachovia Corporation 1,470,531 46
33,800 Washington Mutual, Inc. 1,325,636 42
21,500 Wells Fargo & Company 1,259,255 39
18,000 Westcorp, Inc. 1,060,200 33
- ----------------------------------------------------------------------------------------------------------------------
38,730,816 1,214
- ----------------------------------------------------------------------------------------------------------------------
Health Care--7.9%
49,400 Abbott Laboratories 2,094,560 66
13,900 Aetna, Inc. 1,197,346 37
14,400 * Amgen, Inc. 1,147,248 36
61,500 * Boston Scientific Corporation 1,437,255 45
36,800 * Charles River Laboratories International, Inc. 1,605,216 50
6,200 * Genentech, Inc. 522,102 16
12,300 Guidant Corporation 847,347 26
29,100 * Impax Laboratories, Inc. 351,383 11
30,800 Johnson & Johnson 1,949,024 61
21,500 * Laboratory Corporation of America Holdings 1,047,265 33
15,400 Medtronic, Inc. 825,748 26
24,700 Merck & Company, Inc. 672,087 21
15,500 * PacifiCare Health Systems, Inc. 1,236,590 39
101,680 Pfizer, Inc. 2,538,950 80
21,400 Sanofi-Aventis (ADR) 889,170 28
67,600 * Thermo Electron Corporation 2,088,840 65
23,000 * Triad Hospitals, Inc. 1,041,210 33
27,600 * WellPoint, Inc. 2,092,632 66
36,800 Wyeth 1,702,736 53
- ----------------------------------------------------------------------------------------------------------------------
25,286,709 792
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Industrials--8.4%
35,300 3M Company $2,589,608 $81
15,500 Alexander & Baldwin, Inc. 825,220 26
47,600 Briggs & Stratton Corporation 1,646,484 52
19,800 Burlington Northern Santa Fe Corporation 1,184,040 37
60,800 Cendant Corporation 1,254,912 39
61,600 Chicago Bridge & Iron Company NV - NY Shares 1,915,144 60
11,100 Eaton Corporation 705,405 22
35,450 Engineered Support Systems, Inc. 1,454,868 46
52,400 * Gardner Denver, Inc. 2,337,040 73
200 * Global Cash Access, Inc. 2,820 --
15,300 Harsco Corporation 1,003,221 32
47,600 Honeywell International, Inc. 1,785,000 56
61,300 Knoll, Inc. 1,124,855 35
18,300 Lockheed Martin Corporation 1,117,032 35
43,000 Masco Corporation 1,319,240 41
76,500 * Navigant Consulting, Inc. 1,465,740 46
27,600 Northrop Grumman Corporation 1,500,060 47
22,700 * Pike Electric Corporation 425,171 13
61,300 * Pinnacle Airlines Corporation 398,450 13
18,500 Pitney Bowes, Inc. 772,190 24
35,100 United Technologies Corporation 1,819,584 57
- ----------------------------------------------------------------------------------------------------------------------
26,646,084 835
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--10.4%
30,800 Amphenol Corporation - Class "A" 1,242,472 39
4,600 Analog Devices, Inc. 170,844 5
61,600 * Cisco Systems, Inc. 1,104,488 35
44,900 * Electronics for Imaging, Inc. 1,030,006 32
107,600 * EMC Corporation 1,392,344 44
85,700 * Entrust, Inc. 479,920 15
43,076 First Data Corporation 1,723,040 54
72,300 Hewlett-Packard Company 2,111,160 66
53,800 Intel Corporation 1,326,170 42
33,800 International Business Machines Corporation 2,711,436 85
7,700 * International Rectifier Corporation 347,116 11
24,600 Intersil Corporation - Class "A" 535,788 17
18,000 * Lam Research Corporation 548,460 17
39,100 * Lexar Media, Inc. 250,240 8
107,600 Microsoft Corporation 2,768,548 87
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS TOTAL RETURN FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Information Technology (continued)
82,700 Motorola, Inc. $1,826,843 $57
92,600 Nokia Corporation - Class "A" (ADR) 1,565,866 49
63,000 * OmniVision Technologies, Inc. 795,060 25
40,300 * Palm, Inc. 1,141,699 36
83,000 * Paxar Corporation 1,398,550 44
41,500 QUALCOMM, Inc. 1,857,125 58
33,800 * SanDisk Corporation 1,630,850 51
19,800 StarTek, Inc. 261,360 8
69,100 * Symantec Corporation 1,565,806 49
59,834 Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) 491,835 15
29,200 * Tech Data Corporation 1,071,932 34
77,300 * VeriSign, Inc. 1,651,901 52
10,800 Xilinx, Inc. 300,780 9
- ----------------------------------------------------------------------------------------------------------------------
33,301,639 1,044
- ----------------------------------------------------------------------------------------------------------------------
Materials--3.4%
21,400 Ashland, Inc. 1,182,136 37
30,800 Calgon Carbon Corporation 243,320 8
24,500 Dow Chemical Company 1,020,915 32
18,900 Freeport-McMoRan Copper & Gold, Inc. - Class "B" 918,351 29
38,500 Georgia-Pacific Corporation 1,311,310 41
37,500 Lubrizol Corporation 1,624,875 51
31,300 MeadWestvaco Corporation 864,506 27
13,800 PPG Industries, Inc. 816,822 25
18,500 Praxair, Inc. 886,705 28
58,400 RPM International, Inc. 1,074,560 34
12,300 Weyerhaeuser Company 845,625 26
- ----------------------------------------------------------------------------------------------------------------------
10,789,125 338
- ----------------------------------------------------------------------------------------------------------------------
Other--.3%
23,000 Nasdaq - 100 Index Tracking Stock 907,580 28
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--.6%
42,800 SBC Communications, Inc. 1,025,916 32
23,000 Verizon Communications, Inc. 751,870 24
- ----------------------------------------------------------------------------------------------------------------------
1,777,786 56
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities--.7%
35,300 Atmos Energy Corporation $997,225 $31
23,000 Consolidated Edison, Inc. 1,116,650 35
- ----------------------------------------------------------------------------------------------------------------------
2,113,875 66
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $171,590,935) 205,570,520 6,442
- ----------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS--15.4%
Aerospace/Defense--.2%
$500M Precision Castparts Corp., 5.6%, 2013 509,990 16
- ----------------------------------------------------------------------------------------------------------------------
Automotive--.2%
DaimlerChrysler NA Holdings Corp.:
350M 8%, 2010 387,937 12
350M 6.5%, 2013 370,634 12
- ----------------------------------------------------------------------------------------------------------------------
758,571 24
- ----------------------------------------------------------------------------------------------------------------------
Chemicals--.2%
698M Rohm & Haas Co., 7.4%, 2009 761,732 24
- ----------------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--.3%
900M Clorox Co., 6.125%, 2011 957,152 30
- ----------------------------------------------------------------------------------------------------------------------
Financial--1.5%
CIT Group, Inc. :
500M 4.75%, 2010 497,753 15
750M 7.75%, 2012 860,864 27
Ford Motor Credit Co.:
500M 6.5%, 2007 500,736 16
500M 7.75%, 2007 506,218 16
250M 6.625%, 2008 244,492 8
650M General Motors Acceptance Corp., 7.75%, 2010 630,612 20
750M Household Finance Corp., 6.5%, 2008 788,113 25
885M SLM Corp., 5%, 2015 881,746 27
- ----------------------------------------------------------------------------------------------------------------------
4,910,534 154
- ----------------------------------------------------------------------------------------------------------------------
Financial Services--2.2%
638M Bank United Corp., 8%, 2009 701,074 22
1,000M Lincoln National Corp., 6.5%, 2008 1,049,818 33
810M Manufacturers & Traders Trust Co., 8%, 2010 930,918 29
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS TOTAL RETURN FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Financial Services (continued)
$765M Marshall & Ilsley Bank, 5.2%, 2017 $743,409 $23
500M Merrill Lynch & Co., 4.79%, 2010 498,804 16
853M National City Bank of Kentucky, 6.3%, 2011 919,244 29
1,000M Nationsbank Corp., 7.8%, 2016 1,219,661 38
737M Washington Mutual, Inc., 8.25%, 2010 827,838 26
- ----------------------------------------------------------------------------------------------------------------------
6,890,766 216
- ----------------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--1.1%
Bottling Group, LLC:
950M Series "B", 4.625%, 2012 940,527 30
200M Series "B", 5%, 2013 203,391 6
1,000M Coca-Cola Co., 5.75%, 2011 1,048,271 33
1,030M Coca-Cola Enterprises, Inc., 7.125%, 2009 1,123,926 35
250M Wm. Wrigley Jr. Co., 4.65%, 2015 246,221 8
- ----------------------------------------------------------------------------------------------------------------------
3,562,336 112
- ----------------------------------------------------------------------------------------------------------------------
Food/Drug--.9%
600M Delhaize America, Inc., 8.125%, 2011 653,287 21
1,000M Kroger Co., 7.8%, 2007 1,051,168 33
996M Safeway, Inc., 7%, 2007 1,033,464 32
- ----------------------------------------------------------------------------------------------------------------------
2,737,919 86
- ----------------------------------------------------------------------------------------------------------------------
Forest Products/Containers--.6%
1,100M International Paper Co., 6.75%, 2011 1,180,378 37
700M Weyerhaeuser Co., 6.75%, 2012 757,380 24
- ----------------------------------------------------------------------------------------------------------------------
1,937,758 61
- ----------------------------------------------------------------------------------------------------------------------
Gaming/Leisure--.3%
750M MGM Mirage, Inc., 8.5%, 2010 819,375 26
- ----------------------------------------------------------------------------------------------------------------------
Health Care--.6%
1,000M HCA, Inc., 5.25%, 2008 987,427 31
800M Wyeth, 6.95%, 2011 879,790 28
- ----------------------------------------------------------------------------------------------------------------------
1,867,217 59
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Manufacturing--.6%
$700M Newell Rubbermaid, Inc., 6.75%, 2012 $750,877 $24
900M United Technologies Corp., 7.125%, 2010 1,000,077 31
- ----------------------------------------------------------------------------------------------------------------------
1,750,954 55
- ----------------------------------------------------------------------------------------------------------------------
Media - Broadcasting--.7%
Comcast Cable Communications, Inc.:
705M 8.375%, 2007 744,114 23
750M 7.125%, 2013 835,841 26
800M Cox Communications, Inc., 5.5%, 2015 796,655 25
- ----------------------------------------------------------------------------------------------------------------------
2,376,610 74
- ----------------------------------------------------------------------------------------------------------------------
Media - Diversified--.7%
750M AOL Time Warner, Inc., 6.75%, 2011 806,369 25
500M Time Warner, Inc., 6.875%, 2018 552,849 17
705M Viacom, Inc., 8.625%, 2012 817,439 26
- ----------------------------------------------------------------------------------------------------------------------
2,176,657 68
- ----------------------------------------------------------------------------------------------------------------------
Metals/Mining--.8%
1,000M Alcan, Inc., 5%, 2015 985,271 31
1,000M Alcoa, Inc., 6%, 2012 1,059,481 33
500M Thiokol Corp., 6.625%, 2008 521,547 16
- ----------------------------------------------------------------------------------------------------------------------
2,566,299 80
- ----------------------------------------------------------------------------------------------------------------------
Real Estate Investment Trusts--1.0%
750M Boston Properties, Inc., 5%, 2015 732,833 23
700M EOP Operating LP, 8.1%, 2010 786,309 25
700M Mack-Cali Realty LP, 7.75%, 2011 783,754 24
800M Simon Property Group LP, 7.375%, 2018 925,948 29
- ----------------------------------------------------------------------------------------------------------------------
3,228,844 101
- ----------------------------------------------------------------------------------------------------------------------
Retail - General Merchandise--.4%
500M Federated Department Stores, Inc., 7.45%, 2017 573,561 18
600M Target Corp., 7.5%, 2010 672,801 21
- ----------------------------------------------------------------------------------------------------------------------
1,246,362 39
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS TOTAL RETURN FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Telecommunications--.4%
$600M SBC Communications, Inc., 6.25%, 2011 $637,895 $20
600M Verizon New York, Inc., 6.875%, 2012 642,721 20
- ----------------------------------------------------------------------------------------------------------------------
1,280,616 40
- ----------------------------------------------------------------------------------------------------------------------
Transportation--.8%
Burlington Northern Santa Fe Corp.:
250M 6.75%, 2011 272,395 8
700M 4.875%, 2015 692,237 22
500M 8.125%, 2020 635,660 20
1,000M Union Pacific Corp., 7.375%, 2009 1,092,342 34
- ----------------------------------------------------------------------------------------------------------------------
2,692,634 84
- ----------------------------------------------------------------------------------------------------------------------
Utilities--1.6%
1,000M Carolina Power & Light, Inc., 5.15%, 2015 1,003,494 31
750M Consumers Energy Co., 6.375%, 2008 775,536 24
576M DPL, Inc., 6.875%, 2011 623,520 20
750M Duke Capital Corp., 8%, 2019 912,699 29
750M NiSource Finance Corp., 7.875%, 2010 844,115 26
900M PP&L Capital Funding, Inc., 8.375%, 2007 950,842 30
- ----------------------------------------------------------------------------------------------------------------------
5,110,206 160
- ----------------------------------------------------------------------------------------------------------------------
Waste Management--.3%
1,000M Waste Management, Inc., 6.875%, 2009 1,064,826 33
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $48,313,001) 49,207,358 1,542
- ----------------------------------------------------------------------------------------------------------------------
MORTGAGE-BACKED CERTIFICATES--7.2%
Fannie Mae--3.1%
5,641M 5.5%, 4/1/33--10/1/33 5,645,220 177
1,376M 6.5%, 11/1/33 1,430,582 45
2,645M 7%, 3/1/32--8/1/32 2,795,865 87
- ----------------------------------------------------------------------------------------------------------------------
9,871,667 309
- ----------------------------------------------------------------------------------------------------------------------
Freddie Mac--1.1%
2,699M 6%, 9/1/32--6/1/35 2,747,715 86
851M 6.5%, 1/1/34 874,937 28
- ----------------------------------------------------------------------------------------------------------------------
3,622,652 114
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Principal For Each
Amount $10,000 of
or Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Government National Mortgage Association
I Program--3.0%
$8,610M 5.5%, 4/15/33 - 7/15/35 $8,706,585 $273
361M 6%, 9/15/34 369,797 12
405M 6.5%, 7/15/28 422,668 13
- ----------------------------------------------------------------------------------------------------------------------
9,499,050 298
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Mortgage-Backed Certificates (cost $23,054,367) 22,993,369 721
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS--4.0%
5,000M Fannie Mae, 5.4%, 2013 5,001,230 157
Federal Farm Credit Bank:
4,650M 4.94%, 2012 4,620,235 145
3,000M 5.33%, 2013 2,986,955 94
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations
(cost $12,642,645) 12,608,420 396
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--3.6%
2,000M Jefferson Cnty., AL, Ltd. Oblig. Rev. Bonds, 5%, 2024 2,075,000 65
4,500M Massachusetts Bay Trans. Auth. Sales Tax Rev. Bonds,
5%, 2035 4,623,750 145
1,000M New Jersey Economic Dev. Auth. Rev., 5.125%, 2030 1,048,750 33
1,500M Tobacco Settlement Financing Corp., NJ Rev. Bonds,
6.75%, 2039 1,745,625 54
2,000M Virginia Beach, VA, Water & Sewer Rev. Bonds,
5%, 2030 2,105,000 66
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $11,231,607) 11,598,125 363
- ----------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--.6%
Financials--.5%
15,400 Chubb Corp. - Series "B", 7%, 2006 508,200 16
16,400 Hartford Financial Services Group, Inc. - Class "A",
6%, 2006 1,141,850 36
- ----------------------------------------------------------------------------------------------------------------------
1,650,050 52
- ----------------------------------------------------------------------------------------------------------------------
Health Care--.1%
5,800 Baxter International, Inc., 7%, 2006 332,050 10
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Convertible Preferred Stocks (cost $1,477,622) 1,982,100 62
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS TOTAL RETURN FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Principal For Each
Amount or $10,000 of
Warrants Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
PASS THROUGH CERTIFICATES--.2%
Transportation
$746M Continental Airlines, Inc., 8.388%, 2020
(cost $774,065) $644,387 $20
- ----------------------------------------------------------------------------------------------------------------------
WARRANTS--.0%
Information Technology
3,736 * Lucent Technologies, Inc. (expiring 12/10/07) (cost $0) 3,549 --
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--3.9%
General Electric Capital Corp.:
$1,000M 3.61%, 11/1/05 996,882 31
2,000M 3.73%, 11/1/05 1,993,565 63
2,600M Paccar Financial Corp., 3.72%, 10/5/05 2,598,925 81
1,200M Pitney Bowes, Inc., 3.7%, 10/11/05 1,198,765 38
2,500M Prudential Funding Corp., 3.73%, 10/4/05 2,499,223 78
3,200M Toyota Motor Credit Corp., 3.73%, 10/20/05 3,193,700 100
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $12,481,060) 12,481,060 391
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT
AGENCY OBLIGATIONS--1.4%
1,000M Federal Home Loan Bank, 3.63%, 10/12/05 998,890 31
Freddie Mac:
2,200M 3.5%, 10/4/05 2,199,357 69
1,200M 3.67%, 10/25/05 1,197,063 38
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term U.S. Government
Agency Obligations (cost $4,395,310) 4,395,310 138
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $285,960,612) 100.7% 321,484,198 10,075
Excess of Liabilities Over Other Assets (.7) (2,394,867) (75)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $319,089,331 $10,000
======================================================================================================================
* Non-income producing
Summary of Abbreviations:
ADR American Depositary Receipts
REIT Real Estate Investment Trust
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS VALUE FUND
Dear Investor:
This is the annual report for the First Investors Value Fund for the fiscal
year ended September 30, 2005. During the period, the Fund's return on a net
asset value basis was 12.3% for Class A shares and 11.4% for Class B shares,
including dividends of 7.1 cents per share on Class A shares and 3.0 cents
per share on Class B shares.
The Fund's performance was largely driven by the improving economy, solid
performance of the equity markets and rising energy prices. The Fund
generated strong returns across multiple sectors and market capitalization
classes. The Fund's multi-cap strategy aided performance, as mid- and
small-cap equities outperformed their larger capitalization counterparts
during the review period.
Energy was the best performing sector for the Fund, but strong returns were
also generated in the utilities, information technology and industrials
sectors. The top contributors to performance were ConocoPhillips, Marathon
Oil and Diamond Offshore Drilling, all companies in the energy sector.
Relative to the Standard & Poor's 500 Index, the Fund's holdings in the
financial, industrials and energy sectors were very strong. Compared to the
Standard & Poor's 500 Index, the Fund's holdings in the utilities and
consumer staples sectors underperformed. Also, the Fund's allocation to cash
equivalents was a drag on relative performance, since stock market returns
were positive for the reporting period and the Index does not include cash.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ MATTHEW S. WRIGHT
Matthew S. Wright
Portfolio Manager
October 31, 2005
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 costs of other mutual
funds. Please refer to page 2 for a detailed explanation of the information
presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(4/1/05) (9/30/05) (4/1/05-9/30/05)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,029.00 $7.32
Hypothetical
(5% annual return before expenses) $1,000.00 $1,017.85 $7.28
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,026.13 $10.87
Hypothetical
(5% annual return before expenses) $1,000.00 $1,014.34 $10.81
- ----------------------------------------------------------------------------------------------
* 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 183/365 (to reflect the one-half year period).
Portfolio Composition
TOP TEN SECTORS
(BAR CHART DATA:)
Financials 24.7%
Consumer Discretionary 14.9%
Consumer Staples 9.7%
Energy 9.5%
Industrials 8.1%
Materials 7.5%
Health Care 5.1%
Utilities 4.8%
Information Technology 4.5%
Telecommunication Services 3.8%
Portfolio holdings and allocations are subject to change. Percentages are as
of September 30, 2005, and are based on the total value of investments.
Cumulative Performance Information
FIRST INVESTORS VALUE FUND
Comparison of change in value of $10,000 investment in the First Investors
Value Fund (Class A shares) and the Standard & Poor's 500 Index.
First Investors Value Fund
Graph Plot Points
for the periods Ended 9/30/05
Value S&P 500
Fund Index
Oct-95 $ 9,425 $10,000
Oct-96 10,498 12,410
Oct-97 11,848 16,395
Sep-98 13,749 18,497
Sep-99 15,397 23,639
Sep-00 18,104 26,778
Sep-01 13,581 19,650
Sep-02 10,004 15,623
Sep-03 11,909 19,436
Sep-04 14,359 22,131
Sep-05 16,126 24,842
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 12.31% 5.90%
Five Years (2.29%) (3.43%)
Ten Years 5.81% 5.18%
Class B Shares
One Year 11.43% 7.43%
Five Years (2.96%) (3.35%)
Ten Years 5.03% 5.03%
The graph compares a $10,000 investment in the First Investors Value Fund
(Class A shares) beginning 10/31/95 with a theoretical investment in the
Standard & Poor's 500 Index (the "Index"). The Index is an unmanaged
capitalization-weighted index of 500 stocks designed to measure performance
of the broad domestic economy through changes in the aggregate market value
of such stocks, which represent all major industries. It is not possible to
invest directly in this Index. In addition, the Index does not take into
account fees and expenses that an investor would incur in purchasing
securities in this Index. For purposes of the graph and the accompanying
table, unless otherwise indicated, it has been assumed that the maximum
sales charge was deducted from the initial $10,000 investment in the Fund
and all dividends and distributions were reinvested. Class B shares
performance may be greater than or less than that shown in the line graph
above for Class A shares based on differences in sales loads and fees paid
by shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 9/30/05)
include the reinvestment of all dividends and distributions. "N.A.V. Only"
returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of 5.75%
(prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns are adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). During certain of the periods shown, some
of the expenses of the Fund were waived or assumed. If such expenses had
been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual
Total Return for Ten Years would have been 5.14%. The Class B "S.E.C.
Standardized" Average Annual Total Return for Ten Years would have been
4.99%. Results represent past performance and do not indicate future
results.The graph and the returns shown do not reflect the deduction of
taxes that a shareholder would pay on distributions or the redemption of
fund shares. Investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than the original cost. Standard & Poor's 500 Index figures are from
Standard & Poor's and all other figures are from First Investors Management
Company, Inc.
Portfolio of Investments
FIRST INVESTORS VALUE FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--89.3%
Consumer Discretionary--14.8%
63,400 Bob Evans Farms, Inc. $1,439,814 $49
80,000 Clear Channel Communications, Inc. 2,631,200 89
92,400 Dollar General Corporation 1,694,616 58
107,400 Family Dollar Stores, Inc. 2,134,038 72
46,200 Genuine Parts Company 1,981,980 67
57,400 Home Depot, Inc. 2,189,236 74
47,000 J.C. Penney Company, Inc. (Holding Co.) 2,228,740 76
62,100 Jones Apparel Group, Inc. 1,769,850 60
24,500 Kenneth Cole Productions, Inc. - Class "A" 668,605 23
70,974 Kimball International, Inc. - Class "B" 858,076 29
42,000 Lee Enterprises, Inc. 1,784,160 61
97,200 Leggett & Platt, Inc. 1,963,440 67
26,600 Liberty Corporation 1,247,274 42
18,000 Liz Claiborne, Inc. 707,760 24
24,400 Magna International, Inc. - Class "A" 1,826,584 62
105,200 McDonald's Corporation 3,523,148 120
95,700 Natuzzi SpA (ADR) 787,611 27
70,500 New York Times Company - Class "A" 2,097,375 71
35,300 Newell Rubbermaid, Inc. 799,545 27
54,700 Outback Steakhouse, Inc. 2,002,020 68
162,900 Pearson PLC (ADR) 1,910,817 65
63,700 Talbots, Inc. 1,905,904 65
68,300 Tribune Company 2,314,687 79
122,200 Walt Disney Company 2,948,686 100
- ----------------------------------------------------------------------------------------------------------------------
43,415,166 1,475
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--9.6%
49,100 Anheuser-Busch Companies, Inc. 2,113,264 72
66,500 Avon Products, Inc. 1,795,500 61
35,400 Brown-Forman Corporation - Class "B" 2,107,716 72
67,800 Coca-Cola Company 2,928,282 100
73,800 ConAgra Foods, Inc. 1,826,550 62
26,241 * Del Monte Foods Company 281,566 10
45,200 Diageo PLC (ADR) 2,622,052 89
42,000 Estee Lauder Companies, Inc. - Class "A" 1,462,860 50
20,700 Fomento Economico Mexicano SA de CV (ADR) 1,447,344 49
49,200 H.J. Heinz Company 1,797,768 61
31,300 Kimberly-Clark Corporation 1,863,289 63
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples (continued)
52,500 Ruddick Corporation $1,210,125 $41
105,500 Sara Lee Corporation 1,999,225 68
58,200 Tasty Baking Company 505,176 17
49,500 UST, Inc. 2,072,070 70
50,500 Wal-Mart Stores, Inc. 2,212,910 75
- ----------------------------------------------------------------------------------------------------------------------
28,245,697 960
- ----------------------------------------------------------------------------------------------------------------------
Energy--9.4%
27,600 Anadarko Petroleum Corporation 2,642,700 90
39,000 BP PLC (ADR) 2,763,150 94
66,117 Chevron Corporation 4,279,753 145
51,400 ConocoPhillips 3,593,374 122
43,100 Diamond Offshore Drilling, Inc. 2,639,875 90
23,424 Kerr-McGee Corporation 2,274,705 77
55,400 Marathon Oil Corporation 3,818,722 130
47,200 Royal Dutch Shell PLC - Class "A" (ADR) 3,098,208 105
52,600 Tidewater, Inc. 2,560,042 87
- ----------------------------------------------------------------------------------------------------------------------
27,670,529 940
- ----------------------------------------------------------------------------------------------------------------------
Financials--22.7%
45,300 A.G. Edwards, Inc. 1,984,593 67
14,600 ACE, Ltd. 687,222 23
26,000 Allstate Corporation 1,437,540 49
55,700 AmSouth Bancorporation 1,406,982 48
100,400 Amvescap PLC (ADR) 1,308,212 44
69,600 Aon Corporation 2,232,768 76
35,100 Assured Guaranty, Ltd. 839,943 28
134,400 Bank Mutual Corporation 1,440,768 49
58,864 Bank of America Corporation 2,478,174 84
94,900 Bank of New York Company, Inc. 2,791,009 95
75,000 Brascan Corporation - Class "A" 3,495,000 119
50,247 Cincinnati Financial Corporation 2,104,847 71
66,300 Citigroup, Inc. 3,017,976 103
34,200 Comerica, Inc. 2,014,380 68
56,900 Eagle Hospitality Properties Trust, Inc. 567,862 19
34,200 Erie Indemnity Company - Class "A" 1,804,050 61
30,300 FBL Financial Group, Inc. - Class "A" 907,485 31
78,400 Hudson City Bancorp, Inc. 932,960 32
35,600 Jefferson-Pilot Corporation 1,821,652 62
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS VALUE FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Financials (continued)
85,200 JPMorgan Chase & Company $2,890,836 $98
56,400 KeyCorp 1,818,900 62
30,300 Lincoln National Corporation 1,576,206 54
64,800 MBNA Corporation 1,596,672 54
48,600 Merrill Lynch & Company, Inc. 2,981,610 101
34,000 Montpelier Re Holdings, Ltd. 844,900 29
48,300 Morgan Stanley 2,605,302 89
96,300 NewAlliance Bancshares, Inc. 1,409,832 48
51,200 North Fork Bancorporation, Inc. 1,305,600 44
21,800 One Liberty Properties, Inc. 434,038 15
50,900 Plum Creek Timber Company, Inc. (REIT) 1,929,619 66
22,200 PMI Group, Inc. 885,114 30
34,400 PNC Financial Services Group, Inc. 1,995,888 68
51,300 Protective Life Corporation 2,112,534 72
58,700 PXRE Group, Ltd. 790,102 27
82,100 Regions Financial Corporation 2,554,952 87
15,800 * State National Bancshares, Inc. 410,800 14
30,300 SunTrust Banks, Inc. 2,104,335 71
26,079 TD Banknorth, Inc. 786,021 27
6,800 Waddell & Reed Financial, Inc. - Class "A" 131,648 4
38,600 Wells Fargo & Company 2,260,802 77
- ----------------------------------------------------------------------------------------------------------------------
66,699,134 2,266
- ----------------------------------------------------------------------------------------------------------------------
Health Care--5.1%
60,500 Abbott Laboratories 2,565,200 87
19,800 Biomet, Inc. 687,258 23
50,500 Bristol-Myers Squibb Company 1,215,030 41
43,000 GlaxoSmithKline PLC (ADR) 2,205,040 75
41,800 Johnson & Johnson 2,645,104 90
33,200 Novartis AG (ADR) 1,693,200 58
89,500 Pfizer, Inc. 2,234,815 76
82,100 Schering-Plough Corporation 1,728,205 59
- ----------------------------------------------------------------------------------------------------------------------
14,973,852 509
- ----------------------------------------------------------------------------------------------------------------------
Industrials--8.0%
28,200 A.O. Smith Corporation 803,700 27
29,800 Adesa, Inc. 658,580 22
2,600 Alexander & Baldwin, Inc. 138,424 5
27,800 Avery Dennison Corporation 1,456,442 50
34,800 Baldor Electric Company 882,180 30
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Industrials (continued)
12,000 Deere & Company $734,400 $25
45,100 Dover Corporation 1,839,629 63
53,700 Federal Signal Corporation 917,733 31
22,200 General Dynamics Corporation 2,654,010 90
66,300 Honeywell International, Inc. 2,486,250 85
72,800 Masco Corporation 2,233,504 76
60,000 Norfolk Southern Corporation 2,433,600 83
47,500 Pall Corporation 1,306,250 44
47,700 Pitney Bowes, Inc. 1,990,998 68
16,300 SPX Corporation 748,985 25
21,100 Stewart & Stevenson Services, Inc. 503,235 17
102,800 Werner Enterprises, Inc. 1,777,412 60
- ----------------------------------------------------------------------------------------------------------------------
23,565,332 801
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--4.5%
56,700 Automatic Data Processing, Inc. 2,440,368 83
86,600 AVX Corporation 1,103,284 38
6,381 * Freescale Semiconductor, Inc. - Class "B" 150,464 5
97,900 Hewlett-Packard Company 2,858,680 97
35,600 Intersil Corporation - Class "A" 775,368 26
72,900 Methode Electronics, Inc. 839,808 29
57,800 Motorola, Inc. 1,276,802 43
84,000 Nokia Corporation - Class "A" (ADR) 1,420,440 48
28,200 * Palm, Inc. 798,906 27
92,000 * Planar Systems, Inc. 756,240 26
57,400 Woodhead Industries, Inc. 788,102 27
- ----------------------------------------------------------------------------------------------------------------------
13,208,462 449
- ----------------------------------------------------------------------------------------------------------------------
Materials--7.4%
31,500 Air Products & Chemicals, Inc. 1,736,910 59
40,200 Albemarle Corporation 1,515,540 51
51,700 Alcoa, Inc. 1,262,514 43
106,830 Chemtura Corporation 1,326,829 45
56,600 Compass Minerals International, Inc. 1,301,800 44
34,800 Dow Chemical Company 1,450,116 49
66,500 DuPont (E.I.) de Nemours & Company 2,604,805 89
74,600 Glatfelter 1,051,114 36
59,500 Lubrizol Corporation 2,578,135 88
50,900 MeadWestvaco Corporation 1,405,858 48
73,830 Myers Industries, Inc. 859,381 29
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS VALUE FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Materials (continued)
122,200 Sappi, Ltd. (ADR) $1,440,738 $49
78,900 Sonoco Products Company 2,154,759 73
14,500 Vulcan Materials Company 1,076,045 37
- ----------------------------------------------------------------------------------------------------------------------
21,764,544 740
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--3.5%
9,651 ALLTEL Corporation 628,377 21
62,300 BellSouth Corporation 1,638,490 56
60,400 CT Communications, Inc. 747,148 25
46,300 D&E Communications, Inc. 419,941 14
60,100 Nippon Telegraph and Telephone Corporation (ADR) 1,491,682 51
67,400 SBC Communications, Inc. 1,615,578 55
9,100 SureWest Communications 260,988 9
24,000 Telephone & Data Systems, Inc. 936,000 32
24,000 Telephone & Data Systems, Inc. - Special Shares 901,200 31
53,528 Verizon Communications, Inc. 1,749,830 59
- ----------------------------------------------------------------------------------------------------------------------
10,389,234 353
- ----------------------------------------------------------------------------------------------------------------------
Utilities--4.3%
34,250 American States Water Company 1,146,005 39
39,200 KeySpan Corporation 1,441,776 49
44,300 MDU Resources Group, Inc. 1,579,295 54
78,000 NiSource, Inc. 1,891,500 64
37,700 Northwest Natural Gas Company 1,403,194 48
40,300 ONEOK, Inc. 1,371,006 46
51,200 Southwest Gas Corporation 1,402,368 48
48,700 United Utilities PLC (ADR) 1,141,040 39
47,800 Vectren Corporation 1,355,130 46
- ----------------------------------------------------------------------------------------------------------------------
12,731,314 433
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $211,362,345) 262,663,264 8,926
- ----------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--1.8%
Financials
49,000 Chubb Corp., 7%, 2005 - Series "A" 1,626,310 55
56,900 Lehman Brothers Holdings, Inc., 6.25%,
2007 - Series "GIS" 1,500,737 51
10,100 State Street Corp., 6.75%, 2006 2,171,157 74
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Convertible Preferred Stocks (cost $4,660,511) 5,298,204 180
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--.4%
Telecommunication Services--.2%
27,300 Verizon South, Inc., 7%, 2041 - Series "F" $696,423 $24
- ----------------------------------------------------------------------------------------------------------------------
Utilities--.2%
22,300 Entergy Louisiana, Inc., 7.6%, 2032 566,866 19
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Preferred Stocks (cost $1,253,436) 1,263,289 43
- ----------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS--.2%
Utilities
$500M Union Electric Co., 6.75%, 2008 (cost $499,474) 524,490 18
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT AGENCY
OBLIGATIONS--4.4%
7,600M Federal Home Loan Bank, 3.53%, 10/7/05 7,595,519 258
5,500M Freddie Mac, 3.5%, 10/4/05 5,498,392 186
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term U.S. Government Agency Obligations
(cost $13,093,911) 13,093,911 444
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--2.9%
2,000M ChevronTexaco Corp., 3.68%, 10/4/05 1,999,386 68
1,400M General Electric Capital Corp., 3.72%, 10/4/05 1,399,566 48
1,000M Pitney Bowes, Inc., 3.7%, 10/11/05 998,971 34
4,000M Prudential Funding Corp., 3.68%, 10/12/05 3,995,499 136
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $8,393,422) 8,393,422 286
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $239,263,099) 99.0% 291,236,580 9,897
Other Assets, Less Liabilities 1.0 3,036,364 103
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $294,272,944 $10,000
======================================================================================================================
* Non-income producing
Summary of Abbreviations:
ADR American Depositary Receipts
REIT Real Estate Investment Trust
See notes to financial statements
Portfolio Managers' Letter
FIRST INVESTORS BLUE CHIP FUND
Dear Investor:
This is the annual report for the First Investors Blue Chip Fund for the
fiscal year ended September 30, 2005. During the period, the Fund's return
on a net asset value basis was 10.8% for Class A shares and 10.0% for Class
B shares, including dividends of 10.1 cents per share on Class A shares and
6.7 cents per share on Class B shares.
The Fund's performance was largely driven by the improving economy, solid
performance of the equity markets and rising energy prices. While the energy
sector was, by far, the best performing sector for the Fund, positive
returns were generated across all major economic sectors. The biggest
contributors to performance included ExxonMobil, Altria Group and Office
Depot.
The two sectors that lagged the most relative to the Standard & Poor's 500
Index were utilities and financials. In the utilities sector, the Fund was
hurt by its underweight position relative to the Standard & Poor's 500
Index. Utility stocks rose to richer valuation levels than historic norms.
In financials, New York Community Bancorp, a bank holding company operating
in the New York metropolitan area, was the biggest drag on performance. In
addition, the Fund was hurt by its holdings in American International Group,
an international insurance giant, and Marsh & McLennan, a major insurance
broker and asset management company. Both companies were roiled by scandals.
Positive contributors relative to the Standard & Poor's 500 Index were
strong relative performance in the information technology, consumer
discretionary and energy sectors. In information technology, companies such
as SanDisk, a maker of flash storage products, and Amdocs, a provider of
information systems to telecommunications companies, performed very well.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ MATTHEW S. WRIGHT
Matthew S. Wright
Portfolio Manager*
/s/ JAMES A. HASSO
James A. Hasso
Assistant Portfolio Manager*
October 31, 2005
* Mr. Wright and Mr. Hasso became the Fund's Portfolio Manager and Assistant
Portfolio Manager, respectively, on May 1, 2005.
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 costs of other mutual
funds. Please refer to page 2 for a detailed explanation of the information
presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(4/1/05) (9/30/05) (4/1/05-9/30/05)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,034.53 $7.50
Hypothetical
(5% annual return before expenses) $1,000.00 $1,017.70 $7.44
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,030.68 $11.05
Hypothetical
(5% annual return before expenses) $1,000.00 $1,014.19 $10.96
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.47% for Class A
shares and 2.17% for Class B shares, multiplied by the average account
value over the period, multiplied by 183/365 (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:)
Financials 17.8%
Information Technology 17.1%
Health Care 13.1%
Industrials 12.8%
Consumer Discretionary 11.6%
Consumer Staples 11.2%
Energy 9.7%
Materials 2.7%
Telecommunication Services 2.5%
Utilities 1.0%
Portfolio holdings and allocations are subject to change. Percentages are as
of September 30, 2005, and are based on the total value of investments.
Cumulative Performance Information
FIRST INVESTORS BLUE CHIP FUND
Comparison of change in value of $10,000 investment in the First Investors
Blue Chip Fund (Class A shares) and the Standard & Poor's 500 Index.
First Investors Blue Chip Fund
Graph Plot Points
for the periods Ended 9/30/05
Blue Chip S&P 500
Fund Index
Dec-95 $9,425 $10,000
Dec-96 11,363 12,296
Dec-97 14,323 16,398
Sep-98 14,101 17,382
Sep-99 17,610 22,214
Sep-00 21,394 25,164
Sep-01 14,787 18,465
Sep-02 11,249 14,682
Sep-03 13,242 18,264
Sep-04 14,439 20,797
Sep-05 15,993 23,345
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 10.76% 4.39%
Five Years (5.65%) (6.77%)
Ten Years 6.01% 5.38%
Class B Shares
One Year 9.98% 5.98%
Five Years (6.31%) (6.68%)
Ten Years 5.17% 5.17%
The graph compares a $10,000 investment in the First Investors Blue Chip
Fund (Class A shares) beginning 12/31/95 with a theoretical investment in
the Standard & Poor's 500 Index (the "Index"). The Index is an unmanaged
capitalization-weighted index of 500 stocks designed to measure performance
of the broad domestic economy through changes in the aggregate market value
of such stocks, which represent all major industries. It is not possible to
invest directly in this Index. In addition, the Index does not take into
account fees and expenses that an investor would incur in purchasing
securities in the Index. For purposes of the graph and the accompanying
table, unless otherwise indicated, it has been assumed that the maximum
sales charge was deducted from the initial $10,000 investment in the Fund
and all dividends and distributions were reinvested. Class B shares
performance may be greater than or less than that shown in the line graph
above for Class A shares based on differences in sales loads and fees paid
by shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 9/30/05)
include the reinvestment of all dividends and distributions. "N.A.V. Only"
returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of 5.75%
(prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns are adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). During the periods shown, some of the
expenses of the Fund were waived or assumed. If such expenses had been paid
by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Return
for One Year, Five Years and Ten Years would have been 4.29%, (6.88%) and
5.25%, respectively. The Class B "S.E.C. Standardized" Average Annual Total
Return for One Year, Five Years and Ten Years would have been 5.88%, (6.78%)
and 5.04%, respectively. Results represent past performance and do not
indicate future results.The graph and the returns shown do not reflect the
deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than the original cost. Standard & Poor's 500 Index
figures are from Standard & Poor's and all other figures are from First
Investors Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS BLUE CHIP FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--99.3%
Consumer Discretionary--11.6%
36,200 Best Buy Company, Inc. $1,575,786 $33
31,500 Carnival Corporation 1,574,370 33
39,600 Clear Channel Communications, Inc. 1,302,444 28
71,996 * Comcast Corporation - Class "A" 2,115,242 45
48,900 * Comcast Corporation - Special Class "A" 1,407,342 30
55,300 Eastman Kodak Company 1,345,449 28
31,500 * eBay, Inc. 1,297,800 27
99,200 Gap, Inc. 1,729,056 37
79,800 Hilton Hotels Corporation 1,781,136 38
135,700 Home Depot, Inc. 5,175,598 109
49,100 * Kohl's Corporation 2,463,838 52
48,700 Lowe's Companies, Inc. 3,136,280 66
101,100 McDonald's Corporation 3,385,839 72
158,600 News Corporation - Class "A" 2,472,574 52
33,100 NIKE, Inc. - Class "B" 2,703,608 57
64,700 * Office Depot, Inc. 1,921,590 41
73,800 Target Corporation 3,832,434 81
258,300 Time Warner, Inc. 4,677,813 99
52,800 TJX Companies, Inc. 1,081,344 23
40,300 Tribune Company 1,365,767 29
125,200 Viacom, Inc. - Class "B" 4,132,852 87
137,000 Walt Disney Company 3,305,810 70
23,500 Yum! Brands, Inc. 1,137,635 24
- ----------------------------------------------------------------------------------------------------------------------
54,921,607 1,161
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--11.2%
74,600 Altria Group, Inc. 5,498,766 116
43,900 Anheuser-Busch Companies, Inc. 1,889,456 40
88,600 Avon Products, Inc. 2,392,200 51
142,900 Coca-Cola Company 6,171,851 130
72,400 Coca-Cola Enterprises, Inc. 1,411,800 30
27,000 Colgate-Palmolive Company 1,425,330 30
36,800 Costco Wholesale Corporation 1,585,712 33
95,600 CVS Corporation 2,773,356 59
25,600 Estee Lauder Companies, Inc. - Class "A" 891,648 19
32,900 General Mills, Inc. 1,585,780 33
18,400 Gillette Company 1,070,880 23
25,800 Hershey Foods Corporation 1,452,798 31
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS BLUE CHIP FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples (continued)
55,800 Kimberly-Clark Corporation $3,321,774 $70
104,100 PepsiCo, Inc. 5,903,511 125
112,100 Procter & Gamble Company 6,665,466 141
54,300 Walgreen Company 2,359,335 50
146,100 Wal-Mart Stores, Inc. 6,402,102 135
- ----------------------------------------------------------------------------------------------------------------------
52,801,765 1,116
- ----------------------------------------------------------------------------------------------------------------------
Energy--9.7%
39,600 BP PLC (ADR) 2,805,660 59
22,000 Burlington Resources, Inc. 1,789,040 38
172,200 ChevronTexaco Corporation 11,146,506 236
66,000 ConocoPhillips 4,614,060 98
204,300 ExxonMobil Corporation 12,981,222 274
55,700 Halliburton Company 3,816,564 81
42,100 Schlumberger, Ltd. 3,552,398 75
55,100 * Transocean, Inc. 3,378,181 71
14,600 Valero Energy Corporation 1,650,676 35
- ----------------------------------------------------------------------------------------------------------------------
45,734,307 967
- ----------------------------------------------------------------------------------------------------------------------
Financials--17.7%
55,500 ACE, Ltd. 2,612,385 55
21,000 Allstate Corporation 1,161,090 25
89,500 American Express Company 5,140,880 109
100,800 American International Group, Inc. 6,245,568 132
186,166 Bank of America Corporation 7,837,589 166
117,700 Bank of New York Company, Inc. 3,461,557 73
750 * Berkshire Hathaway, Inc. - Class "B" 2,048,250 43
43,100 Capital One Financial Corporation 3,427,312 72
16,900 Chubb Corporation 1,513,395 32
250,500 Citigroup, Inc. 11,402,760 241
28,600 Fannie Mae 1,281,852 27
40,500 Freddie Mac 2,286,630 48
29,300 Goldman Sachs Group, Inc. 3,562,294 75
170,968 JPMorgan Chase & Company 5,800,944 123
12,500 Lehman Brothers Holdings, Inc. 1,456,000 31
40,500 Marsh & McLennan Companies, Inc. 1,230,795 26
93,700 MBNA Corporation 2,308,768 49
56,500 Merrill Lynch & Company, Inc. 3,466,275 73
80,300 Morgan Stanley 4,331,382 92
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Financials (continued)
58,200 New York Community Bancorp, Inc. $954,480 $20
56,500 U.S. Bancorp 1,586,520 34
75,600 Wachovia Corporation 3,597,804 76
70,200 Washington Mutual, Inc. 2,753,244 58
65,000 Wells Fargo & Company 3,807,050 80
18,400 Willis Group Holdings, Ltd. 690,920 15
- ----------------------------------------------------------------------------------------------------------------------
83,965,744 1,775
- ----------------------------------------------------------------------------------------------------------------------
Health Care--13.1%
93,500 Abbott Laboratories 3,964,400 84
33,800 Aetna, Inc. 2,911,532 62
75,700 * Amgen, Inc. 6,031,019 128
95,700 * Boston Scientific Corporation 2,236,509 47
180,500 Bristol-Myers Squibb Company 4,342,830 92
14,600 * Coventry Health Care, Inc. 1,255,892 27
24,100 HCA, Inc. 1,154,872 24
157,000 Johnson & Johnson 9,934,960 210
80,700 Medtronic, Inc. 4,327,134 91
69,600 Merck & Company, Inc. 1,893,816 40
97,800 Novartis AG (ADR) 4,987,800 105
367,060 Pfizer, Inc. 9,165,488 194
36,800 Teva Pharmaceutical Industries, Ltd. (ADR) 1,229,856 26
26,400 * Triad Hospitals, Inc. 1,195,128 25
80,800 UnitedHealth Group, Inc. 4,540,960 96
60,100 Wyeth 2,780,827 59
- ----------------------------------------------------------------------------------------------------------------------
61,953,023 1,310
- ----------------------------------------------------------------------------------------------------------------------
Industrials--12.8%
51,100 3M Company 3,748,696 79
36,600 Boeing Company 2,486,970 53
81,300 Caterpillar, Inc. 4,776,375 101
114,800 Cendant Corporation 2,369,472 50
23,700 Deere & Company 1,450,440 31
33,000 Dover Corporation 1,346,070 28
38,100 Emerson Electric Company 2,735,580 58
409,000 General Electric Company 13,771,030 291
55,300 Honeywell International, Inc. 2,073,750 44
24,200 ITT Industries, Inc. 2,749,120 58
59,200 Lockheed Martin Corporation 3,613,568 76
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS BLUE CHIP FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Industrials (continued)
78,300 Masco Corporation $2,402,244 $51
42,800 Northrop Grumman Corporation 2,326,180 49
159,700 Tyco International, Ltd. 4,447,645 94
36,800 Union Pacific Corporation 2,638,560 56
37,400 United Parcel Service, Inc. - Class "B" 2,585,462 55
94,800 United Technologies Corporation 4,914,432 104
- ----------------------------------------------------------------------------------------------------------------------
60,435,594 1,278
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--17.1%
53,600 * Accenture, Ltd. - Class "A" 1,364,656 29
34,500 Analog Devices, Inc. 1,281,330 27
15,400 * Apple Computer, Inc. 825,594 17
77,100 Applied Materials, Inc. 1,307,616 28
66,100 * ASML Holding NV - NY Shares 1,091,311 23
32,000 Automatic Data Processing, Inc. 1,377,280 29
338,900 * Cisco Systems, Inc. 6,076,477 128
136,300 * Corning, Inc. 2,634,679 56
157,100 * Dell, Inc. 5,372,820 114
338,600 * EMC Corporation 4,381,484 93
93,200 First Data Corporation 3,728,000 79
110,900 Hewlett-Packard Company 3,238,280 68
320,200 Intel Corporation 7,892,930 167
71,700 International Business Machines Corporation 5,751,774 122
505,300 Microsoft Corporation 13,001,369 275
136,200 Motorola, Inc. 3,008,658 64
110,500 National Semiconductor Corporation 2,906,150 61
171,000 Nokia Corporation - Class "A" (ADR) 2,891,610 61
192,900 * Oracle Corporation 2,390,031 50
40,500 QUALCOMM, Inc. 1,812,375 38
54,100 * SanDisk Corporation 2,610,325 55
65,091 * Symantec Corporation 1,474,962 31
109,900 Texas Instruments, Inc. 3,725,610 79
55,300 * Xerox Corporation 754,845 16
- ----------------------------------------------------------------------------------------------------------------------
80,900,166 1,710
- ----------------------------------------------------------------------------------------------------------------------
Materials--2.6%
59,000 Alcoa, Inc. 1,440,780 30
45,922 Cemex SA de CV (ADR) 2,401,721 51
66,300 Dow Chemical Company 2,762,721 58
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Materials (continued)
55,700 DuPont (E.I.) de Nemours & Company $2,181,769 $46
66,200 International Paper Company 1,972,760 42
18,300 Newmont Mining Corporation 863,211 18
7,300 Phelps Dodge Corporation 948,489 20
- ----------------------------------------------------------------------------------------------------------------------
12,571,451 265
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--2.5%
135,800 SBC Communications, Inc. 3,255,126 69
206,366 Sprint Corporation 4,907,383 104
110,900 Verizon Communications, Inc. 3,625,321 76
- ----------------------------------------------------------------------------------------------------------------------
11,787,830 249
- ----------------------------------------------------------------------------------------------------------------------
Utilities--1.0%
160,700 Duke Energy Corporation 4,687,620 99
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $362,048,360) 469,759,107 9,930
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--.3%
$1,500M General Electric Capital Corp., 3.72%, 10/4/05
(cost $1,499,535) 1,499,535 32
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT AGENCY
OBLIGATIONS--.2%
800M Federal Home Loan Bank, 3.53%, 10/7/05
(cost $799,528) 799,528 17
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $364,347,423) 99.8% 472,058,170 9,979
Other Assets, Less Liabilities .2 997,929 21
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $473,056,099 $10,000
======================================================================================================================
* Non-income producing
Summary of Abbreviations:
ADR American Depositary Receipts
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS GROWTH & INCOME FUND
Dear Investor:
This is the annual report for the First Investors Growth & Income Fund for
the fiscal year ended September 30, 2005. During the period, the Fund's
return on a net asset value basis was 13.4% for Class A shares and 12.7% for
Class B shares, including dividends of 9.8 cents per share on Class A shares
and 2.9 cents per share on Class B shares.
The Fund's performance primarily resulted from the continued strength in the
general economy, the rise in energy prices, the solid performance of the
equity markets and strong stock selection across multiple sectors.
Specifically, returns were greatest in the Fund's investments in the energy,
technology, consumer discretionary and industrials sectors. In addition, the
Fund's multi-cap strategy aided performance, as mid- and small-cap equities
outperformed their larger capitalization counterparts during the review
period. Stock selection benefited investments in almost all sectors, most
notably in the consumer discretionary, energy, industrials and materials
areas. The Fund's investments in financial services firms detracted from
results.
The Fund's biggest contributing sector was consumer discretionary, which
benefited from the strong performance of retailers, hotels and leisure
companies and apparel manufacturers. Strong consumer activity during the
year helped these stocks. The Fund's best overall performing sector was
energy, which benefited from higher prices for crude oil and natural gas, as
well as increased demand from the world's economies. Oil and gas companies,
as well as equipment and services companies, did well. Industrial companies
benefited from increased global demand and from their continued focus on
cost cutting and efficiencies, which helped offset the rising prices of raw
materials. Shares of aerospace, machinery and engineering firms posted solid
results. The Fund also benefited from increased merger and acquisition
activity during the reporting period. Thirteen of our holdings received
merger offers; most notable were the takeover of Neiman Marcus Group by the
Texas Pacific investor group, the purchase of specialty pharmaceutical
distributor Accredo Healthcare by Medco Health, and the pending merger of
MBNA with Bank of America.
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
and Portfolio Manager
October 31, 2005
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 costs of other mutual
funds. Please refer to page 2 for a detailed explanation of the information
presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(4/1/05) (9/30/05) (4/1/05-9/30/05)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,049.83 $7.19
Hypothetical
(5% annual return before expenses) $1,000.00 $1,018.05 $7.08
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,046.47 $10.77
Hypothetical
(5% annual return before expenses) $1,000.00 $1,014.54 $10.61
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.40% for Class A
shares and 2.10% for Class B shares, multiplied by the average account
value over the period, multiplied by 183/365 (to reflect the one-half year
period).
Portfolio Composition
TOP TEN SECTORS
(BAR CHART DATA:)
Financials 19.4%
Information Technology 16.0%
Consumer Discretionary 15.9%
Industrials 12.8%
Health Care 12.2%
Energy 9.1%
Consumer Staples 6.7%
Materials 5.2%
Utilities 1.0%
Telecommunication Services 0.9%
Portfolio holdings and allocations are subject to change. Percentages are as
of September 30, 2005, and are based on the total value of investments.
Cumulative Performance Information
FIRST INVESTORS GROWTH & INCOME FUND
Comparison of change in value of $10,000 investment in the First Investors
Growth & Income Fund (Class A shares) and the Standard & Poor's 500 Index.
First Investors Growth & Income Fund
Graph Plot Points
for the periods Ended 9/30/05
Growth & Income S&P 500
Fund Index
Oct-95 $ 9,425 $10,000
Oct-96 11,408 12,410
Oct-97 14,396 16,395
Sep-98 15,669 18,497
Sep-99 19,390 23,639
Sep-00 23,522 26,778
Sep-01 17,428 19,650
Sep-02 13,850 15,623
Sep-03 16,827 19,436
Sep-04 19,174 22,131
Sep-05 21,750 24,842
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 13.43% 6.92%
Five Years (1.55%) (2.71%)
Ten Years 8.53% 7.89%
Class B Shares
One Year 12.65% 8.65%
Five Years (2.24%) (2.63%)
Ten Years 7.68% 7.68%
The graph compares a $10,000 investment in the First Investors Growth &
Income Fund (Class A shares) beginning 10/31/95 with a theoretical
investment in the Standard & Poor's 500 Index (the "Index"). The Index is an
unmanaged capitalization-weighted index of 500 stocks designed to measure
performance of the broad domestic economy through changes in the aggregate
market value of such stocks, which represent all major industries. It is not
possible to invest directly in this Index. In addition, the Index does not
take into account fees and expenses that an investor would incur in
purchasing securities in the Index. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed that the
maximum sales charge was deducted from the initial $10,000 investment in the
Fund and all dividends and distributions were reinvested. Class B shares
performance may be greater than or less than that shown in the line graph
above for Class A shares based on differences in sales loads and fees paid
by shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 9/30/05)
include the reinvestment of all dividends and distributions. "N.A.V. Only"
returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of 5.75%
(prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns are adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). During certain of the periods shown, some
of the expenses of the Fund were waived or assumed. If such expenses had
been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual
Total Return for Ten Years would have been 7.87%. The Class B "S.E.C.
Standardized" Average Annual Total Return for Ten Years would have been
7.66%. Results represent past performance and do not indicate future
results.The graph and the returns shown do not reflect the deduction of
taxes that a shareholder would pay on distributions or the redemption of
fund shares. Investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than the original cost. Standard & Poor's 500 Index figures are from
Standard & Poor's and all other figures are from First Investors Management
Company, Inc.
Portfolio of Investments
FIRST INVESTORS GROWTH & INCOME FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--98.8%
Consumer Discretionary--16.0%
100,000 Applebee's International, Inc. $2,069,000 $31
212,500 Blockbuster, Inc. - Class "A" 1,009,375 15
186,500 Claire's Stores, Inc. 4,500,245 66
200,000 Clear Channel Communications, Inc. 6,578,000 97
245,602 * Cost Plus, Inc. 4,457,676 66
230,000 Dollar General Corporation 4,218,200 62
4,800 * DSW, Inc. - Class "A" 101,760 2
89,200 * Eddie Bauer Holdings, Inc. 2,196,550 32
50,000 Genuine Parts Company 2,145,000 32
60,000 Harley-Davidson, Inc. 2,906,400 43
110,000 * Helen of Troy, Ltd. 2,270,400 33
120,000 Home Depot, Inc. 4,576,800 67
55,000 J.C. Penney Company, Inc. (Holding Co.) 2,608,100 38
100,000 Kenneth Cole Productions, Inc. - Class "A" 2,729,000 40
375,000 Leggett & Platt, Inc. 7,575,000 112
161,900 * Lincoln Educational Services Corporation 1,908,801 28
210,000 McDonald's Corporation 7,032,900 104
175,000 Movado Group, Inc. 3,276,000 48
226,100 Orient-Express Hotels, Ltd. 6,425,762 95
82,300 Oxford Industries, Inc. 3,713,376 55
104,600 Polo Ralph Lauren Corporation - Class "A" 5,261,380 78
275,600 * Prestige Brands Holdings, Inc. 3,395,392 50
225,000 RadioShack Corporation 5,580,000 82
50,000 Ross Stores, Inc. 1,185,000 17
148,700 Russell Corporation 2,087,748 31
65,000 Sherwin-Williams Company 2,864,550 42
120,000 * Steiner Leisure, Ltd. 4,076,400 60
90,000 * Timberland Company - Class "A" 3,040,200 45
200,000 * Tommy Hilfiger Corporation 3,470,000 51
150,000 Viacom, Inc. - Class "B" 4,951,500 73
- ----------------------------------------------------------------------------------------------------------------------
108,210,515 1,595
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--6.7%
100,000 Altria Group, Inc. 7,371,000 109
275,000 Avon Products, Inc. 7,425,000 110
50,000 Coca-Cola Company 2,159,500 32
3,000 * Diamond Foods, Inc. 51,300 1
65,000 Estee Lauder Companies, Inc. - Class "A" 2,263,950 33
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS GROWTH & INCOME FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples (continued)
75,000 * Herbalife, Ltd. $2,260,500 $33
47,500 Kimberly-Clark Corporation 2,827,675 42
290,000 Nu Skin Enterprises, Inc. - Class "A" 5,524,500 81
50,000 PepsiCo, Inc. 2,835,500 42
75,000 Procter & Gamble Company 4,459,500 66
89,091 Tootsie Roll Industries, Inc. 2,828,639 42
75,000 Wal-Mart Stores, Inc. 3,286,500 48
72,300 WD-40 Company 1,916,673 28
- ----------------------------------------------------------------------------------------------------------------------
45,210,237 667
- ----------------------------------------------------------------------------------------------------------------------
Energy--9.1%
60,000 Anadarko Petroleum Corporation 5,745,000 85
200,000 Chesapeake Energy Corporation 7,650,000 113
80,000 ConocoPhillips 5,592,800 82
115,000 ExxonMobil Corporation 7,307,100 108
16,548 Marathon Oil Corporation 1,140,654 17
80,000 Noble Corporation 5,476,800 81
16,600 * Petroleum Helicopters, Inc. - Non Voting Shares 514,932 8
100,000 Sasol, Ltd. (ADR) 3,869,000 57
150,000 Suncor Energy, Inc. 9,079,500 134
60,000 * Swift Energy Company 2,745,000 40
120,000 * Transocean, Inc. 7,357,200 108
120,000 XTO Energy, Inc. 5,438,400 80
- ----------------------------------------------------------------------------------------------------------------------
61,916,386 913
- ----------------------------------------------------------------------------------------------------------------------
Financials--18.6%
50,000 American Express Company 2,872,000 42
90,000 American International Group, Inc. 5,576,400 82
197,718 Bank of America Corporation 8,323,928 123
150,000 Citigroup, Inc. 6,828,000 101
200,000 Colonial BancGroup, Inc. 4,480,000 66
100,000 Comerica, Inc. 5,890,000 87
255,000 Doral Financial Corporation 3,332,850 49
60,000 Endurance Specialty Holdings, Ltd. 2,046,600 30
50,000 Fannie Mae 2,241,000 33
130,000 Independence Community Bank Corporation 4,431,700 65
155,000 JPMorgan Chase & Company 5,259,150 78
42,500 Lehman Brothers Holdings, Inc. 4,950,400 73
150,000 MBNA Corporation 3,696,000 54
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Financials (continued)
105,000 Merrill Lynch & Company, Inc. $6,441,750 $95
155,400 Montpelier Re Holdings, Ltd. 3,861,690 57
90,000 Morgan Stanley 4,854,600 72
90,000 National City Corporation 3,009,600 44
230,000 New York Community Bancorp, Inc. 3,772,000 56
250,000 NewAlliance Bancshares, Inc. 3,660,000 54
225,000 North Fork Bancorporation, Inc. 5,737,500 85
75,000 Plum Creek Timber Company, Inc. (REIT) 2,843,250 42
40,000 Safeco Corporation 2,135,200 31
100,000 South Financial Group, Inc. 2,684,000 40
200,000 Sovereign Bancorp, Inc. 4,408,000 65
150,000 U.S. Bancorp 4,212,000 62
87,570 U.S.B. Holding Company, Inc. 1,996,596 29
100,000 Wachovia Corporation 4,759,000 70
110,000 Washington Mutual, Inc. 4,314,200 64
70,000 Wells Fargo & Company 4,099,900 60
60,000 Westcorp, Inc. 3,534,000 52
- ----------------------------------------------------------------------------------------------------------------------
126,251,314 1,861
- ----------------------------------------------------------------------------------------------------------------------
Health Care--12.1%
160,000 Abbott Laboratories 6,784,000 100
45,000 Aetna, Inc. 3,876,300 57
46,700 * Amgen, Inc. 3,720,589 55
200,000 * Boston Scientific Corporation 4,674,000 69
120,000 * Charles River Laboratories International, Inc. 5,234,400 77
20,000 * Genentech, Inc. 1,684,200 25
40,000 Guidant Corporation 2,755,600 41
100,000 * Impax Laboratories, Inc. 1,207,500 18
100,000 Johnson & Johnson 6,328,000 93
70,000 * Laboratory Corporation of America Holdings 3,409,700 50
50,000 Medtronic, Inc. 2,681,000 39
80,000 Merck & Company, Inc. 2,176,800 32
50,000 * PacifiCare Health Systems, Inc. 3,989,000 59
330,000 Pfizer, Inc. 8,240,100 121
70,000 Sanofi-Aventis (ADR) 2,908,500 43
220,000 * Thermo Electron Corporation 6,798,000 100
75,000 * Triad Hospitals, Inc. 3,395,250 50
90,000 * WellPoint, Inc. 6,823,800 101
120,000 Wyeth 5,552,400 82
- ----------------------------------------------------------------------------------------------------------------------
82,239,139 1,212
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS GROWTH & INCOME FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Industrials--12.8%
115,000 3M Company $8,436,400 $124
50,400 Alexander & Baldwin, Inc. 2,683,296 39
155,000 Briggs & Stratton Corporation 5,361,450 79
65,000 Burlington Northern Santa Fe Corporation 3,887,000 57
200,000 Cendant Corporation 4,128,000 61
200,400 Chicago Bridge & Iron Company NV - NY Shares 6,230,436 92
36,000 Eaton Corporation 2,287,800 34
115,000 Engineered Support Systems, Inc. 4,719,600 70
170,000 * Gardner Denver, Inc. 7,582,000 112
800 * Global Cash Access, Inc. 11,280 --
50,000 Harsco Corporation 3,278,500 48
155,000 Honeywell International, Inc. 5,812,500 86
200,100 Knoll, Inc. 3,671,835 54
60,000 Lockheed Martin Corporation 3,662,400 54
140,000 Masco Corporation 4,295,200 63
250,000 * Navigant Consulting, Inc. 4,790,000 71
90,000 Northrop Grumman Corporation 4,891,500 72
75,400 * Pike Electric Corporation 1,412,242 21
200,000 * Pinnacle Airlines Corporation 1,300,000 19
60,000 Pitney Bowes, Inc. 2,504,400 37
115,000 United Technologies Corporation 5,961,600 88
- ----------------------------------------------------------------------------------------------------------------------
86,907,439 1,281
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--16.0%
100,000 Amphenol Corporation - Class "A" 4,034,000 59
15,000 Analog Devices, Inc. 557,100 8
200,000 * Cisco Systems, Inc. 3,586,000 53
146,200 * Electronics for Imaging, Inc. 3,353,828 49
350,000 * EMC Corporation 4,529,000 67
300,000 * Entrust, Inc. 1,680,000 25
140,000 First Data Corporation 5,600,000 83
235,000 Hewlett-Packard Company 6,862,000 101
175,000 Intel Corporation 4,313,750 64
110,000 International Business Machines Corporation 8,824,200 130
25,000 * International Rectifier Corporation 1,127,000 17
80,000 Intersil Corporation - Class "A" 1,742,400 26
60,000 * Lam Research Corporation 1,828,200 27
127,100 * Lexar Media, Inc. 813,440 12
350,000 Microsoft Corporation 9,005,500 133
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Information Technology (continued)
275,000 Motorola, Inc. $6,074,750 $90
300,000 Nokia Corporation - Class "A" (ADR) 5,073,000 75
205,000 * OmniVision Technologies, Inc. 2,587,100 38
132,000 * Palm, Inc. 3,739,560 55
270,000 * Paxar Corporation 4,549,500 67
135,000 QUALCOMM, Inc. 6,041,250 89
110,000 * SanDisk Corporation 5,307,500 78
65,000 StarTek, Inc. 858,000 13
224,840 * Symantec Corporation 5,094,874 75
194,060 Taiwan Semiconductor Manufacturing Co., Ltd.
(ADR) 1,595,173 23
95,000 * Tech Data Corporation 3,487,450 51
250,000 * VeriSign, Inc. 5,342,500 79
35,000 Xilinx, Inc. 974,750 14
- ----------------------------------------------------------------------------------------------------------------------
108,581,825 1,601
- ----------------------------------------------------------------------------------------------------------------------
Materials--5.2%
70,000 Ashland, Inc. 3,866,800 57
100,000 Calgon Carbon Corporation 790,000 12
80,000 Dow Chemical Company 3,333,600 49
60,000 Freeport-McMoRan Copper &
Gold, Inc. - Class "B" 2,915,400 43
125,000 Georgia-Pacific Corporation 4,257,500 63
122,100 Lubrizol Corporation 5,290,593 78
100,000 MeadWestvaco Corporation 2,762,000 41
45,000 PPG Industries, Inc. 2,663,550 39
60,000 Praxair, Inc. 2,875,800 42
190,000 RPM International, Inc. 3,496,000 52
40,000 Weyerhaeuser Company 2,750,000 40
- ----------------------------------------------------------------------------------------------------------------------
35,001,243 516
- ----------------------------------------------------------------------------------------------------------------------
Other--.4%
75,000 Nasdaq - 100 Index Tracking Stock 2,959,500 44
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--.9%
140,000 SBC Communications, Inc. 3,355,800 50
75,000 Verizon Communications, Inc. 2,451,750 36
- ----------------------------------------------------------------------------------------------------------------------
5,807,550 86
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Shares, Invested
Warrants or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities--1.0%
115,400 Atmos Energy Corporation $3,260,050 $48
75,000 Consolidated Edison, Inc. 3,641,250 54
- ----------------------------------------------------------------------------------------------------------------------
6,901,300 102
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $551,051,852) 669,986,448 9,878
- ----------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--.9%
Financials--.8%
50,000 Chubb Corp., 7%, 2006 - Series "B" 1,650,000 24
50,000 Hartford Financial Services Group, Inc.,
6%, 2006 - Class "A" 3,481,250 51
- ----------------------------------------------------------------------------------------------------------------------
5,131,250 75
- ----------------------------------------------------------------------------------------------------------------------
Health Care--.1%
16,000 Baxter International, Inc., 7%, 2006 916,000 14
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Convertible Preferred Stocks (cost $4,425,823) 6,047,250 89
- ----------------------------------------------------------------------------------------------------------------------
WARRANTS--.0%
Information Technology
23,179 * Lucent Technologies, Inc. (expiring 12/10/07) (cost $0) 22,020 --
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--.4%
$3,000M General Electric Capital Corp., 3.72%, 10/5/05
(cost $2,998,760) 2,998,760 44
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $558,476,435) 100.1% 679,054,478 10,011
Excess of Liabilities Over Other Assets (.1) (770,986) (11)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $678,283,492 $10,000
======================================================================================================================
* Non-income producing
Summary of Abbreviations:
ADR American Depositary Receipts
REIT Real Estate Investment Trust
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS ALL-CAP GROWTH FUND
Dear Investor:
This is the annual report for the First Investors All-Cap Growth Fund for
the fiscal year ended September 30, 2005. During the period, the Fund's
return on a net asset value basis was 13.1% for Class A shares and 12.3% for
Class B shares.
The Fund's positive overall performance during the reporting period was
helped by the solid performance of the equity markets. In addition, the
Fund's multi-cap strategy aided performance, as mid- and small-cap equities
outperformed their larger-capitalization counterparts during the period.
The Fund's outperformance relative to the Russell 3000 Growth Index was
largely due to the Fund's greater than benchmark exposure to energy stocks,
which significantly outperformed, as well as its limited exposure to
consumer discretionary and consumer staples stocks, which trailed the
overall Index. In addition, favorable security selection in the energy,
information technology and consumer staples sectors helped relative
performance. Top individual contributors included Google, which benefited
from both a strong secular trend toward increased online advertising and the
company's exceptional growth rate, and Petro-Canada, which was supported by
rising oil prices.
The primary detractor from relative performance was the Fund's security
selection in the health care sector. Negative results within this sector
were primarily driven by biotech holding Elan, which declined significantly
after the company announced in late February that its new multiple sclerosis
drug, Tysabri, was associated with a fatal side effect. Other individual
detractors included Countrywide Financial and eBay.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ ANDREW J. SHILLING
Andrew J. Shilling
Portfolio Manager
October 31, 2005
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 costs of other mutual
funds. Please refer to page 2 for a detailed explanation of the information
presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(4/1/05) (9/30/05) (4/1/05-9/30/05)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,098.38 $8.31
Hypothetical
(5% annual return before expenses) $1,000.00 $1,017.15 $7.99
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,093.71 $11.97
Hypothetical
(5% annual return before expenses) $1,000.00 $1,013.64 $11.51
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.58% for Class A shares and
2.28% for Class B shares, multiplied by the average account value over the period,
multiplied by 183/365 (to reflect the one-half year period).
Portfolio Composition
BY SECTOR
[BAR CHART DATA:]
Information Technology 28.9%
Health Care 19.6%
Industrials 14.4%
Financials 12.9%
Consumer Discretionary 8.9%
Energy 8.3%
Consumer Staples 2.0%
Telecommunication Services 1.0%
Portfolio holdings and allocations are subject to change. Percentages are as of
September 30, 2005, and are based on the total value of investments.
Cumulative Performance Information
FIRST INVESTORS ALL-CAP GROWTH FUND
Comparison of change in value of $10,000 investment in the First Investors
All-Cap Growth Fund (Class A shares) and the Russell 3000 Growth Index.
First Investors All-Cap Growth Fund
Graph Plot Points
for the periods Ended 9/30/05
All-Cap Russell
Growth 3000 Growth
Fund Index
Oct-00 $ 9,425 $10,000
Sep-01 6,155 6,001
Sep-02 5,024 4,667
Sep-03 6,362 5,925
Sep-04 7,352 6,388
Sep-05 8,313 7,163
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 13.08% 6.52%
Since Inception (10/25/00) (2.51%) (3.68%)
Class B Shares
One Year 12.25% 8.25%
Since Inception (10/25/00) (3.19%) (3.59%)
The graph compares a $10,000 investment in the First Investors All-Cap Growth
Fund (Class A shares) beginning 10/25/00 (inception date) with a theoretical
investment in the Russell 3000 Growth Index (the "Index"). The Index is an
unmanaged index composed of the 3000 largest U.S. companies, as determined by
market capitalization, and represents approximately 98% of the investable U.S.
equity market. It is not possible to invest directly in this Index. In
addition, the Index does not take into account fees and expenses that an
investor would incur in purchasing securities in the Index. For purposes of
the graph and the accompanying table, unless otherwise indicated, it has been
assumed that the maximum sales charge was deducted from the initial $10,000
investment in the Fund. Class B shares performance may be greater than or less
than that shown in the line graph above for Class A shares based on
differences in the sales loads and fees paid by shareholders investing in the
different classes.
* Average Annual Total Return figures are for the periods ended 9/30/05.
"N.A.V. Only" returns are calculated without sales charges. The Class A
"S.E.C. Standardized" returns shown are based on the maximum sales charge
of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class
B "S.E.C. Standardized" returns are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). During the periods shown,
some of the expenses of the Fund were waived or assumed. If such expenses
had been paid by the Fund, the Class A "S.E.C. Standardized" Total Return
Since Inception would have been (3.81%). The Class B "S.E.C. Standardized"
Total Return Since Inception would have been (3.71%). Results represent
past performance and do not indicate future results.The graph and the
returns shown do not reflect the deduction of taxes that a shareholder
would pay on distributions or the redemption of fund shares. Investment
return and principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the
original cost. Russell 3000 Growth Index figures are from Frank Russell
and Company and all other figures are from First Investors Management
Company, Inc.
Portfolio of Investments
FIRST INVESTORS ALL-CAP GROWTH FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS--94.9%
Consumer Discretionary--8.8%
28,300 * Chico's FAS, Inc. $1,041,440 $54
3,600 * Coach, Inc. 112,896 6
29,633 D.R. Horton, Inc. 1,073,307 56
23,600 * Education Management Corporation 760,864 39
13,000 * Electronics Boutique Holdings Corporation 816,920 42
26,050 * GameStop Corporation - Class "B" 739,560 38
54,730 Geox SpA 547,346 28
24,560 * Insight Enterprises, Inc. 456,816 24
47,610 * La Quinta Corporation 413,731 22
30,130 Omnicom Group, Inc. 2,519,771 131
29,100 * Pixar 1,295,241 67
7,670 * Red Robin Gourmet Burgers, Inc. 351,593 18
2,240 Standard Pacific Corporation 92,982 5
9,000 * Wynn Resorts, Ltd. 406,350 21
177,020 * XM Satellite Radio Holdings, Inc. - Class "A" 6,356,788 330
- ----------------------------------------------------------------------------------------------------
16,985,605 881
- ----------------------------------------------------------------------------------------------------
Consumer Staples--2.0%
64,040 Procter & Gamble Company 3,807,818 197
- ----------------------------------------------------------------------------------------------------
Energy--8.2%
6,500 * Alon USA Energy, Inc. 156,975 8
11,350 Arch Coal, Inc. 766,125 40
13,165 Cabot Oil & Gas Corporation - Class "A" 664,964 35
32,600 Cameco Corporation 1,744,100 90
20,700 EOG Resources, Inc. 1,550,430 80
49,880 Halliburton Company 3,417,778 177
4,800 Oil Service HOLDRs Trust 595,200 31
135,460 Petro-Canada 5,652,746 293
26,266 XTO Energy, Inc. 1,190,375 62
- ----------------------------------------------------------------------------------------------------
15,738,693 816
- ----------------------------------------------------------------------------------------------------
Financials--12.7%
7,415 * Affiliated Managers Group, Inc. 536,994 28
14,190 * Arch Capital Group, Ltd. 703,682 37
31,100 Capital One Financial Corporation 2,473,072 128
14,990 * CB Richard Ellis Group, Inc. - Class "A" 737,508 38
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------
Financials (continued)
12,550 Chicago Mercantile Exchange
Holdings, Inc. - Class "A" $4,233,115 $219
200,710 Countrywide Financial Corporation 6,619,416 343
32,000 Franklin Resources, Inc. 2,686,720 139
47,410 Legg Mason, Inc. 5,200,403 270
32,100 * NASDAQ Stock Market, Inc. 813,735 42
15,380 Nuveen Investments, Inc. - Class "A" 605,818 31
- ----------------------------------------------------------------------------------------------------
24,610,463 1,275
- ----------------------------------------------------------------------------------------------------
Health Care--19.4%
28,900 * Abgenix, Inc. 366,452 19
27,550 * Alkermes, Inc. 462,840 24
60,140 * Amgen, Inc. 4,791,354 248
20,570 * Amylin Pharmaceuticals, Inc. 715,630 37
24,400 Applera Corporation - Applied Biosystems Group 567,056 29
163,870 AstraZeneca PLC (ADR) 7,718,277 400
24,200 Biomet, Inc. 839,982 44
12,600 * Cephalon, Inc. 584,892 30
11,170 * Covance, Inc. 536,048 28
27,000 * DaVita, Inc. 1,243,890 65
20,760 * Digene Corporation 591,660 31
13,900 * Foxhollow Technologies, Inc. 661,779 34
4,760 * HealthTronics, Inc. 47,410 3
20,360 * Hologic, Inc. 1,175,790 61
121,370 Medtronic, Inc. 6,507,859 337
10,100 Mentor Corporation 555,601 29
11,870 * Pharmaceutical Product Development, Inc. 682,644 35
169,190 Schering-Plough Corporation 3,561,450 185
102,300 UnitedHealth Group, Inc. 5,749,260 298
- ----------------------------------------------------------------------------------------------------
37,359,874 1,937
- ----------------------------------------------------------------------------------------------------
Industrials--14.3%
12,480 * Advisory Board Company 649,459 34
66,260 Boeing Company 4,502,367 233
18,900 C. H. Robinson Worldwide, Inc. 1,211,868 63
9,200 Corporate Executive Board Company 717,416 37
16,350 * Corrections Corporation of America 649,095 34
56,470 Danaher Corporation 3,039,780 158
22,310 * DiamondCluster International, Inc. 169,110 9
- ----------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS ALL-CAP GROWTH FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------
Industrials (continued)
18,700 Expeditors International of Washington, Inc. $1,061,786 $55
18,000 Fastenal Company 1,099,620 57
32,820 General Dynamics Corporation 3,923,631 203
141,250 General Electric Company 4,755,887 247
10,650 Gol-Linhas Aereas Inteligentes SA (ADR) 345,593 18
8,990 * Jacobs Engineering Group, Inc. 605,926 31
22,760 Knight Transportation, Inc. 554,434 29
37,300 * Monster Worldwide, Inc. 1,145,483 59
14,500 PACCAR, Inc. 984,405 51
43,400 Robert Half International, Inc. 1,544,606 80
10,390 * Stericycle, Inc. 593,788 31
- ----------------------------------------------------------------------------------------------------
27,554,254 1,429
- ----------------------------------------------------------------------------------------------------
Information Technology--28.5%
26,500 * Amdocs, Ltd. 734,845 38
26,230 * aQuantive, Inc. 528,010 27
15,700 CDW Corporation 925,044 48
18,700 * Cognizant Technology Solutions
Corporation - Class "A" 871,233 45
14,100 * Cognos, Inc. 548,913 29
177,130 * Dell, Inc. 6,057,846 314
120,100 * Electronic Arts, Inc. 6,832,489 354
11,140 * F5 Networks, Inc. 484,256 25
15,670 * Google, Inc. - Class "A" 4,958,928 257
11,300 * Intuit, Inc. 506,353 26
45,400 * Jabil Circuit, Inc. 1,403,768 73
27,400 Linear Technology Corporation 1,029,966 53
29,620 * Logitech International SA (ADR) 1,207,015 63
34,200 * MEMC Electronic Materials, Inc. 779,418 40
17,680 * Microsemi Corporation 451,547 23
149,880 Microsoft Corporation 3,856,412 200
7,980 * NAVTEQ Corporation 398,601 21
146,590 * Network Appliance, Inc. 3,480,047 180
33,700 * NVIDIA Corporation 1,155,236 60
121,680 * Opsware, Inc. 631,519 33
74,750 QUALCOMM, Inc. 3,345,063 174
118,650 * Red Hat, Inc. 2,514,194 130
37,000 * Redback Networks, Inc. 367,040 19
30,780 * Research in Motion, Ltd. 2,105,352 109
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------
Information Technology (continued)
23,640 * Salesforce.com, Inc. $546,557 $28
28,300 * SanDisk Corporation 1,365,475 71
520 * Take-Two Interactive Software, Inc. 11,487 1
33,555 * THQ, Inc. 715,393 37
49,900 * VeriFone Holdings, Inc. 1,003,489 52
185,000 * Yahoo!, Inc. 6,260,400 325
- ----------------------------------------------------------------------------------------------------
55,075,896 2,855
- ----------------------------------------------------------------------------------------------------
Telecommunication Services--1.0%
35,700 * Alamosa Holdings, Inc. 610,827 32
55,600 * American Tower Corporation - Class "A" 1,387,220 72
- ----------------------------------------------------------------------------------------------------
1,998,047 104
- ----------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $150,251,867) 183,130,650 9,494
- ----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--4.0%
$7,702M UBS Securities, 3.31%, dated 9/30/05, to be
repurchased at $7,704,124 on 10/3/05
(collateralized by U.S. Treasury Bonds,
7.875%, 2/15/21, valued at $7,837,711)
(cost $7,702,000) 7,702,000 400
- ----------------------------------------------------------------------------------------------------
Total Value of Investments (cost $157,953,867) 98.9% 190,832,650 9,894
Other Assets, Less Liabilities 1.1 2,039,129 106
- ----------------------------------------------------------------------------------------------------
Net Assets 100.0% $192,871,779 $10,000
====================================================================================================
* Non-income producing
Summary of Abbreviations:
ADR American Depositary Receipts
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
Dear Investor:
This is the annual report for the First Investors Mid-Cap Opportunity Fund
for the fiscal year ended September 30, 2005. During the period, the Fund's
return on a net asset value basis was 24.4% for Class A shares and 23.5% for
Class B shares.
The Fund's performance was largely driven by rising oil and natural gas
prices, earnings growth among health care service providers, solid
performance of the mid-cap stock sector and asset allocation decisions.
Performance on an absolute basis was attributable to investments in two key
sectors: energy and health care. Strong global demand, as well as unexpected
supply interruptions from Hurricanes Katrina and Rita, resulted in higher
oil and natural gas prices in the energy sector. Shares of HMOs, drug
distributors and pharmacy benefit managers were key contributors in the
health care sector, aided by merger and acquisition activity. Meaningful
contributions also came from the industrials and consumer staples sectors.
On a relative basis, the Fund outperformed the Standard & Poor's 400 Midcap
Index due to its overweight positions in the energy and health care sectors.
Within the energy sector, the Fund had relative outperformance due to its
emphasis on natural gas stocks, which generally did better than oil stocks.
Among health care sector holdings, shares of HMOs, drug distributors and
pharmacy benefit managers rose sharply.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ STEVEN S. HILL
Steven S. Hill
Portfolio Manager*
October 31, 2005
* Mr. Hill became the Fund's sole Portfolio Manager on July 1, 2005.
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 costs of other mutual
funds. Please refer to page 2 for a detailed explanation of the information
presented in these examples.
- ----------------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(4/1/05) (9/30/05) (4/1/05-9/30/05)*
- ----------------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,100.12 $7.84
Hypothetical
(5% annual return before expenses) $1,000.00 $1,017.60 $7.54
- ----------------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,096.34 $11.51
Hypothetical
(5% annual return before expenses) $1,000.00 $1,014.09 $11.06
- ----------------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.49% for Class A shares
and 2.19% for Class B shares, multiplied by the average account value over the
period, multiplied by 183/365 (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 18.7%
Consumer Discretionary 16.2%
Financials 13.8%
Energy 13.7%
Industrials 12.0%
Information Technology 11.3%
Materials 4.3%
Other 4.1%
Consumer Staples 3.1%
Utilities 2.2%
Portfolio holdings and allocations are subject to change. Percentages are as
of September 30, 2005, and are based on the total value of investments.
Cumulative Performance Information
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
Comparison of change in value of $10,000 investment in the First Investors
Mid-Cap Opportunity Fund (Class A shares) and the Standard & Poor's 400
Midcap Index.
First Investors Mid-Cap Opportunity Fund
Graph Plot Points
for the periods Ended 9/30/05
Mid-cap S&P 400
Opportunity Mid-cap
Fund Index
Oct-95 $ 9,425 $10,000
Oct-96 9,884 11,736
Oct-97 12,561 15,568
Sep-98 10,499 15,247
Sep-99 15,188 19,129
Sep-00 21,477 27,397
Sep-01 14,961 22,192
Sep-02 13,383 21,150
Sep-03 16,267 26,820
Sep-04 19,261 31,528
Sep-05 23,951 38,515
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 24.35% 17.18%
Five Years 2.20% 1.00%
Ten Years 10.27% 9.62%
Class B Shares
One Year 23.51% 19.51%
Five Years 1.49% 1.11%
Ten Years 9.41% 9.41%
The graph compares a $10,000 investment in the First Investors Mid-Cap
Opportunity Fund (Class A shares) beginning 10/31/95 with a theoretical
investment in the Standard & Poor's 400 Midcap Index (the "Index"). The
Index is an unmanaged capitalization-weighted index of 400 stocks designed
to measure performance of the mid-range sector of the U.S. stock market
where the median market capitalization is approximately $700 million. It is
not possible to invest directly in this Index. In addition, the Index does
not take into account fees and expenses that an investor would incur in
purchasing securities in the Index. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed that the
maximum sales charge was deducted from the initial $10,000 investment in the
Fund and all dividends and distributions were reinvested. Class B shares
performance may be greater than or less than that shown in the line graph
above for Class A shares based on differences in sales loads and fees paid
by shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 9/30/05) include
the reinvestment of all dividends and distributions. "N.A.V. Only" returns
are calculated without sales charges. The Class A "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 5.75% (prior to
6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns are adjusted for the applicable deferred sales
charge (maximum of 4% in the first year). During the periods shown, some
of the expenses of the Fund were waived or assumed. If such expenses had
been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual
Total Return for One Year, Five Years and Ten Years would have been
17.05%, .79% and 9.29%, respectively. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year, Five Years and Ten Years would
have been 19.39%, .90% and 9.08%, respectively. Results represent past
performance and do not indicate future results.The graph and the returns
shown do not reflect the deduction of taxes that a shareholder would pay
on distributions or the redemption of fund shares. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
Standard & Poor's 400 Midcap Index figures are from Standard & Poor's and
all other figures are from First Investors Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--99.3%
Consumer Discretionary--16.2%
75,000 American Axle & Manufacturing Holdings, Inc. $1,731,000 $37
85,000 Applebee's International, Inc. 1,758,650 38
63,000 BorgWarner, Inc. 3,556,980 76
70,000 * Chico's FAS, Inc. 2,576,000 55
150,000 Claire's Stores, Inc. 3,619,500 77
95,000 * Coach, Inc. 2,979,200 64
140,000 Dollar General Corporation 2,567,600 55
110,000 * Eddie Bauer Holdings, Inc. 2,708,750 58
125,000 * Fossil, Inc. 2,273,750 49
115,000 * Helen of Troy, Ltd. 2,373,600 51
40,000 * Hovnanian Enterprises, Inc. - Class "A" 2,048,000 44
86,000 Kenneth Cole Productions, Inc. - Class "A" 2,346,940 50
150,000 Leggett & Platt, Inc. 3,030,000 65
30,000 M.D.C. Holdings, Inc. 2,366,700 51
130,000 Movado Group, Inc. 2,433,600 52
167,000 * Office Depot, Inc. 4,959,900 106
144,200 Orient-Express Hotels, Ltd. 4,098,164 88
165,000 * Pacific Sunwear of California, Inc. 3,537,600 76
70,000 Polo Ralph Lauren Corporation - Class "A" 3,521,000 75
220,000 * Prestige Brands Holdings, Inc. 2,710,400 58
70,000 Regis Corporation 2,647,400 57
85,000 Tiffany & Company 3,380,450 72
75,000 * Timberland Company - Class "A" 2,533,500 54
125,000 * Tommy Hilfiger Corporation 2,168,750 46
105,000 Tupperware Corporation 2,391,900 51
110,000 * Warnaco Group, Inc. - Class "A" 2,410,100 51
150,000 Westwood One, Inc. 2,983,500 64
- ----------------------------------------------------------------------------------------------------------------------
75,712,934 1,620
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--3.1%
60,000 Alberto-Culver Company 2,685,000 57
33,000 Altria Group, Inc. 2,432,430 52
151,400 * Herbalife, Ltd. 4,563,196 98
130,000 Nu Skin Enterprises, Inc. - Class "A" 2,476,500 53
75,000 Tootsie Roll Industries, Inc. 2,381,250 51
- ----------------------------------------------------------------------------------------------------------------------
14,538,376 311
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Energy--13.7%
40,000 Anadarko Petroleum Corporation $3,830,000 $82
210,000 Chesapeake Energy Corporation 8,032,500 172
90,000 EOG Resources, Inc. 6,741,000 144
65,000 GlobalSantaFe Corporation 2,965,300 63
165,000 * Grant Prideco, Inc. 6,707,250 144
160,000 Patterson-UTI Energy, Inc. 5,772,800 124
24,000 * Petroleum Helicopters, Inc. - Non Voting Shares 744,480 16
80,000 Suncor Energy, Inc. 4,842,400 104
90,000 * Swift Energy Company 4,117,500 88
120,000 Talisman Energy, Inc. 5,860,800 125
77,500 * Transocean, Inc. 4,751,525 102
50,000 * Weatherford International, Ltd. 3,433,000 73
134,000 XTO Energy, Inc. 6,072,880 130
- ----------------------------------------------------------------------------------------------------------------------
63,871,435 1,367
- ----------------------------------------------------------------------------------------------------------------------
Financials--13.7%
55,000 A.G. Edwards, Inc. 2,409,550 52
37,500 Ambac Financial Group, Inc. 2,702,250 58
30,000 Bear Stearns Companies, Inc. 3,292,500 70
60,000 Brookline Bancorp, Inc. 949,200 20
52,000 Citigroup, Inc. 2,367,040 51
35,000 City National Corporation 2,453,150 52
135,000 Colonial BancGroup, Inc. 3,024,000 65
115,000 * Conseco, Inc. 2,427,650 52
87,500 Endurance Specialty Holdings, Ltd. 2,984,625 64
120,000 Hub International, Ltd. 2,721,600 58
75,000 Independence Community Bank Corporation 2,556,750 55
175,000 Janus Capital Group, Inc. 2,528,750 54
13,000 Legg Mason, Inc. 1,425,970 31
175,000 NewAlliance Bancshares, Inc. 2,562,000 55
140,000 North Fork Bancorporation, Inc. 3,570,000 76
55,000 PMI Group, Inc. 2,192,850 47
70,000 Protective Life Corporation 2,882,600 62
115,000 Provident Financial Services, Inc. 2,024,000 43
46,000 Radian Group, Inc. 2,442,600 52
52,000 SAFECO Corporation 2,775,760 59
85,000 South Financial Group, Inc. 2,281,400 49
201,000 Sovereign Bancorp, Inc. 4,430,040 95
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Financials (continued)
80,000 TD Banknorth, Inc. $2,411,200 $52
120,000 Waddell & Reed Financial, Inc. - Class "A" 2,323,200 50
35,000 Zions Bancorporation 2,492,350 53
- ----------------------------------------------------------------------------------------------------------------------
64,231,035 1,375
- ----------------------------------------------------------------------------------------------------------------------
Health Care--18.7%
50,000 Aetna, Inc. 4,307,000 92
32,500 AmerisourceBergen Corporation 2,512,250 54
145,000 * Andrx Corporation 2,237,350 48
135,000 * Aspreva Pharmaceuticals Corporation 1,925,100 41
45,000 Beckman Coulter, Inc. 2,429,100 52
65,000 Biomet, Inc. 2,256,150 48
110,000 * Caremark Rx, Inc. 5,492,300 117
35,000 * Centene Corporation 876,050 19
54,000 * Charles River Laboratories International, Inc. 2,355,480 50
72,500 * Coley Pharmaceuticals Group, Inc. 1,319,500 28
95,000 * Community Health Systems, Inc. 3,686,950 79
40,000 Cooper Companies, Inc. 3,064,400 66
50,000 DENTSPLY International, Inc. 2,701,000 58
240,000 * Exelixis, Inc. 1,840,800 39
45,000 * Fisher Scientific International, Inc. 2,792,250 60
65,000 * Gilead Sciences, Inc. 3,169,400 68
85,000 * Henry Schein, Inc. 3,622,700 77
220,000 * Human Genome Sciences, Inc. 2,989,800 64
65,000 * Humana, Inc. 3,112,200 67
130,000 * Idenix Pharmaceuticals, Inc. 3,263,000 70
60,000 * Laboratory Corporation of America Holdings 2,922,600 63
48,000 * Medco Health Solutions, Inc. 2,631,840 56
63,000 * Neurocrine Biosciences, Inc. 3,098,970 66
160,000 * Noven Pharmaceuticals, Inc. 2,240,000 48
180,000 Option Care, Inc. 2,635,200 56
35,000 * PacifiCare Health Systems, Inc. 2,792,300 60
110,000 * Thermo Electron Corporation 3,399,000 73
68,500 * Triad Hospitals, Inc. 3,100,995 66
65,000 * Waters Corporation 2,704,000 58
1,000 * WebMD Health Corporation - Class "A" 24,649 1
75,000 * WellPoint, Inc. 5,686,500 122
- ----------------------------------------------------------------------------------------------------------------------
87,188,834 1,866
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Industrials--12.0%
65,000 American Standard Companies, Inc. $3,025,750 $65
45,000 Avery Dennison Corporation 2,357,550 50
70,000 Briggs & Stratton Corporation 2,421,300 52
187,000 Chicago Bridge & Iron Company NV - NY Shares 5,813,830 124
55,000 * ChoicePoint, Inc. 2,374,350 51
41,000 FedEx Corporation 3,572,330 76
97,000 * Gardner Denver, Inc. 4,326,200 93
50,000 Harsco Corporation 3,278,500 70
65,000 IDEX Corporation 2,765,750 59
120,000 * K&F Industries Holdings, Inc. 2,007,600 43
150,000 Knoll, Inc. 2,752,500 59
30,000 L-3 Communications Holdings, Inc. 2,372,100 51
67,000 Manpower, Inc. 2,974,130 64
90,000 Masco Corporation 2,761,200 59
75,000 * Mobile Mini, Inc. 3,251,250 70
75,000 Northrop Grumman Corporation 4,076,250 87
150,000 * Pike Electric Corporation 2,809,500 60
95,000 Regal-Beloit Corporation 3,081,800 66
- ----------------------------------------------------------------------------------------------------------------------
56,021,890 1,199
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--11.3%
113,000 Amphenol Corporation - Class "A" 4,558,420 97
37,500 * CheckFree Corporation 1,418,250 30
125,000 * Comverse Technology, Inc. 3,283,750 70
45,000 * DST Systems, Inc. 2,467,350 53
115,000 * Electronics for Imaging, Inc. 2,638,100 57
71,250 Fair Isaac Corporation 3,192,000 68
220,000 * Ingram Micro, Inc. - Class "A" 4,078,800 87
60,000 * International Rectifier Corporation 2,704,800 58
125,000 Intersil Corporation - Class "A" 2,722,500 58
62,500 * Intuit, Inc. 2,800,625 60
120,000 * Manhattan Associates, Inc. 2,784,000 60
110,000 * McAfee, Inc. 3,456,200 74
80,000 * Novellus Systems, Inc. 2,006,400 43
100,000 * Palm, Inc. 2,833,000 61
155,000 * Paxar Corporation 2,611,750 56
170,000 * Polycom, Inc. 2,748,900 59
165,000 * Sybase, Inc. 3,864,300 83
120,000 * VeriSign, Inc. 2,564,400 55
- ----------------------------------------------------------------------------------------------------------------------
52,733,545 1,129
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Materials--4.3%
80,000 Freeport-McMoRan Copper &
Gold, Inc. - Class "B" $3,887,200 $83
60,000 Georgia-Pacific Corporation 2,043,600 44
65,000 Louisiana-Pacific Corporation 1,799,850 39
70,000 Lubrizol Corporation 3,033,100 65
80,000 MeadWestvaco Corporation 2,209,600 47
50,000 Praxair, Inc. 2,396,500 51
170,000 Sappi, Ltd. (ADR) 2,004,300 43
40,000 Sigma-Aldrich Corporation 2,562,400 55
- ----------------------------------------------------------------------------------------------------------------------
19,936,550 427
- ----------------------------------------------------------------------------------------------------------------------
Other--4.1%
147,500 MidCap SPDR Trust - Series "1" 19,304,800 413
- ----------------------------------------------------------------------------------------------------------------------
Utilities--2.2%
65,000 AGL Resources, Inc. 2,412,150 52
70,000 Equitable Resources, Inc. 2,734,200 58
57,000 SCANA Corporation 2,407,680 52
66,000 Wisconsin Energy Corporation 2,634,720 56
- ----------------------------------------------------------------------------------------------------------------------
10,188,750 218
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $350,161,706) 463,728,149 9,925
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--.4%
$1,400M General Electric Capital Corp., 3.73%, 11/1/05 1,395,496 30
500M Pitney Bowes, Inc., 3.7%, 10/11/05 499,485 10
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $1,894,981) 1,894,981 40
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS--.2%
1,000M Freddie Mac, 3.5%, 10/4/05 (cost $999,708) 999,708 21
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $353,056,395) 99.9% 466,622,838 9,986
Other Assets, Less Liabilities .1 673,355 14
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $467,296,193 $10,000
======================================================================================================================
*Non-income producing
Summary of Abbreviations:
ADR American Depositary Receipts
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS SPECIAL SITUATIONS FUND
Dear Investor:
This is the annual report for the First Investors Special Situations Fund
for the fiscal year ended September 30, 2005. During the period, the Fund's
return on a net asset value basis was 21.4% for Class A shares and 20.5% for
Class B shares.
The Fund made a major shift in strategy in March. Previously, the Fund had
invested primarily in small-cap growth stocks. Since approximately
mid-March, the Fund has shifted to a value strategy. The Fund now seeks
good, small companies that have been neglected by investors. We look for
undervalued companies that have instituted positive changes, which we
believe will lead to better than expected returns. The Fund's strategic
shift approximately five months into the reporting period makes 12-month
comparisons to indexes problematic. However, we're pleased to report that
the Fund outperformed its current benchmark, the Russell 2000 Index, for
both the reporting period and the period after the transition.
Stock selection was the primary factor in the Fund's favorable performance
relative to the Russell 2000 Index. Our selection process discovered Flowers
Foods, a baker that benefited from efficient operations, while its major
rivals floundered. The Fund was also helped by its holdings in Intergraph, a
technology company that is enjoying a very interesting second life.
During the last six months of the period, energy, the price of gasoline and
natural gas and its influence on the economy dominated the stock market. The
Fund benefited from investments in exploration and production companies, as
well as in refiners and engineering companies. The Fund's underweight
position relative to the Russell 2000 Index in the consumer discretionary
sector also helped performance.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ JOHN B. WALTHAUSEN
John B. Walthausen
Portfolio Manager*
October 31, 2005
* Mr. Walthausen became the Fund's Portfolio Manager on March 9, 2005.
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 costs of other mutual
funds. Please refer to page 2 for a detailed explanation of the information
presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(4/1/05) (9/30/05) (4/1/05-9/30/05)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,087.22 $8.63
Hypothetical
(5% annual return before expenses) $1,000.00 $1,016.80 $8.34
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,083.33 $12.27
Hypothetical
(5% annual return before expenses) $1,000.00 $1,013.29 $11.86
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.65% for Class A shares and 2.35%
for Class B shares, multiplied by the average account value over the period, multiplied
by 183/365 (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 22.2%
Information Technology 19.3%
Consumer Discretionary 11.7%
Health Care 10.4%
Consumer Staples 8.9%
Utilities 6.0%
Energy 5.6%
Financials 4.4%
Telecommunication Services 4.4%
Materials 2.8%
Portfolio holdings and allocations are subject to change. Percentages are as
of September 30, 2005, and are based on the total value of investments.
Cumulative Performance Information
FIRST INVESTORS SPECIAL SITUATIONS FUND
Comparison of change in value of $10,000 investment in the First Investors
Special Situations Fund (Class A shares) and the Russell 2000 Index.
First Investors Special Situations Fund
Graph Plot Points
for the periods Ended 9/30/05
Special Russell
Situations 2000
Fund Index
Dec-95 $ 9,425 $10,000
Dec-96 10,513 11,649
Dec-97 12,211 14,254
Sep-98 9,816 11,943
Sep-99 12,882 14,221
Sep-00 18,430 17,547
Sep-01 10,530 13,825
Sep-02 8,794 12,540
Sep-03 10,857 17,116
Sep-04 11,697 20,329
Sep-05 14,198 23,978
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 21.38% 14.38%
Five Years (5.08%) (6.20%)
Ten Years 4.01% 3.40%
Class B Shares
One Year 20.46% 16.46%
Five Years (5.75%) (6.13%)
Ten Years 3.23% 3.23%
The graph compares a $10,000 investment in the First Investors Special
Situations Fund (Class A shares) beginning 12/31/95 with a theoretical
investment in the Russell 2000 Index (the "Index"). The Index consists of
the smallest 2,000 companies in the Russell 3000 Index (which represents
approximately 98% of the investable U.S. equity market). The Index is an
unmanaged index generally considered as the premier of small capitalization
stocks. It is not possible to invest directly in this Index. In addition,
the Index does not take into account fees and expenses that an investor
would incur in purchasing securities in the Index. For purposes of the graph
and the accompanying table, unless otherwise indicated, it has been assumed
that the maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were reinvested.
Class B shares performance may be greater than or less than that shown in
the line graph above for Class A shares based on differences in the sales
loads and fees paid by shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 9/30/05)
include the reinvestment of all dividends and distributions. "N.A.V. Only"
returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of 5.75%
(prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns are adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). During the periods shown, some of the
expenses of the Fund were waived or assumed. If such expenses had been paid
by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Return
for One Year, Five Years and Ten Years would have been 14.16%, (6.46%) and
3.16%, respectively. The Class B "S.E.C. Standardized" Average Annual Total
Return for One Year, Five Years and Ten Years would have been 16.25%,
(6.34%) and 3.00%, respectively. Results represent past performance and do
not indicate future results.The graph and the returns shown do not reflect
the deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than the original cost. Russell 2000 Index figures are
from Frank Russell and Company and all other figures are from First
Investors Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS SPECIAL SITUATIONS FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--96.2%
Consumer Discretionary--11.8%
65,700 Arbitron, Inc. $2,617,488 $107
130,800 Catalina Marketing Corporation 2,974,392 122
134,500 Dillard's, Inc. - Class "A" 2,808,360 115
2,000 Ethan Allen Interiors, Inc. 62,700 3
195,200 Journal Communications, Inc. 2,908,480 119
107,000 Matthews International Corporation - Class "A" 4,043,530 165
52,400 Media General, Inc. - Class "A" 3,039,724 124
175,500 * Payless ShoeSource, Inc. 3,053,700 125
2,625 Pre-Paid Legal Services, Inc. 101,588 4
3,575 * ProQuest Company 129,415 5
156,200 RadioShack Corporation 3,873,760 159
73,600 Sherwin-Williams Company 3,243,552 133
- ----------------------------------------------------------------------------------------------------------------------
28,856,689 1,181
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--9.0%
119,300 Chiquita Brands International, Inc. 3,334,435 136
96,600 Church & Dwight Company, Inc. 3,568,404 146
169,300 Flower Foods, Inc. 4,618,504 189
105,000 Hormel Foods Corporation 3,463,950 142
79,800 Lancaster Colony Corporation 3,431,400 140
109,708 Tootsie Roll Industries, Inc. 3,483,229 143
- ----------------------------------------------------------------------------------------------------------------------
21,899,922 896
- ----------------------------------------------------------------------------------------------------------------------
Energy--5.6%
25,400 * Denbury Resources, Inc. 1,281,176 52
55,100 Overseas Shipholding Group, Inc. 3,213,983 132
1,400 * SEACOR Holdings, Inc. 101,612 4
31,600 * Southwestern Energy Company 2,319,440 95
48,500 * Swift Energy Company 2,218,875 91
67,400 Tesoro Corporation 4,531,976 185
- ----------------------------------------------------------------------------------------------------------------------
13,667,062 559
- ----------------------------------------------------------------------------------------------------------------------
Financials--4.5%
3,225 21st Century Insurance Group 51,439 2
119,500 Commerce Bancorp, Inc. 3,667,455 150
112,150 HCC Insurance Holdings, Inc. 3,199,640 131
184,100 MoneyGram International, Inc. 3,996,811 164
- ----------------------------------------------------------------------------------------------------------------------
10,915,345 447
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS SPECIAL SITUATIONS FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care--10.4%
142,100 * AmSurg Corporation $3,887,856 $159
442,000 * BioScrip, Inc. 2,873,000 118
89,400 * Humana, Inc. 4,280,472 175
87,500 * LabOne, Inc. 3,806,250 156
79,900 * Lincare Holdings, Inc. 3,279,895 134
102,200 * Magellan Health Services, Inc. - Class "A" 3,592,330 147
127,200 West Pharmaceutical Services, Inc. 3,774,024 154
- ----------------------------------------------------------------------------------------------------------------------
25,493,827 1,043
- ----------------------------------------------------------------------------------------------------------------------
Industrials--22.3%
160,900 Angelica Corporation 2,872,065 118
60,000 Carlisle Companies, Inc. 3,814,200 156
115,200 CLARCOR, Inc. 3,308,544 135
57,400 Curtiss-Wright Corporation 3,542,154 145
3,600 ElkCorp 128,772 5
70,000 HNI Corporation 4,215,400 173
63,800 * Jacobs Engineering Group, Inc. 4,300,120 176
92,600 John H. Harland Company 4,111,440 168
168,700 * Kansas City Southern, Inc. 3,932,397 161
111,600 * NCI Building Systems, Inc. 4,552,164 186
109,000 United Industrial Corporation 3,896,750 160
163,200 Wabtec Corporation 4,452,096 182
70,400 * Washington Group International, Inc. 3,793,856 155
131,300 Watson Wyatt & Company Holdings - Class "A" 3,538,535 145
48,000 Woodward Governor Company 4,082,400 167
- ----------------------------------------------------------------------------------------------------------------------
54,540,893 2,232
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--19.4%
157,425 * Avnet, Inc. 3,849,041 157
239,400 AVX Corporation 3,049,956 125
119,900 * Cabot Microelectronics Corporation 3,522,662 144
230,100 * Convergys Corporation 3,306,537 135
83,100 Imation Corporation 3,562,497 146
101,100 * Intergraph Corporation 4,520,181 185
65,700 * International Rectifier Corporation 2,961,756 121
223,400 * MEMC Electronic Materials, Inc. 5,091,286 208
362,000 * Overland Storage, Inc. 2,950,300 121
89,600 * Rogers Corporation 3,467,520 142
184,600 Sabre Holdings Corporation - Class "A" 3,743,688 153
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Information Technology (continued)
436,500 * Tyler Technologies, Inc. $3,614,220 $148
89,900 * Varian Semiconductor Equipment
Associates, Inc. 3,809,063 156
- ----------------------------------------------------------------------------------------------------------------------
47,448,707 1,941
- ----------------------------------------------------------------------------------------------------------------------
Materials--2.8%
70,200 AptarGroup, Inc. 3,496,662 143
98,500 Commercial Metals Company 3,323,390 136
6,200 * Metals USA, Inc. 126,852 5
- ----------------------------------------------------------------------------------------------------------------------
6,946,904 284
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--4.4%
105,300 CenturyTel, Inc. 3,683,394 151
371,400 * Premiere Global Services, Inc. 3,038,052 124
105,825 Telephone & Data Systems, Inc. - Special Shares 3,973,729 163
- ----------------------------------------------------------------------------------------------------------------------
10,695,175 438
- ----------------------------------------------------------------------------------------------------------------------
Utilities--6.0%
121,300 Atmos Energy Corporation 3,426,725 140
261,800 * CMS Energy Corporation 4,306,610 176
185,200 Duquesne Light Holdings, Inc. 3,187,292 130
160,100 Pepco Holdings, Inc. 3,725,526 153
- ----------------------------------------------------------------------------------------------------------------------
14,646,153 599
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $209,985,596) 235,110,677 9,620
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT
AGENCY OBLIGATIONS--4.3%
$10,600M Federal Home Loan Bank, 3.18%, 10/3/05
(cost $10,598,127) 10,598,127 434
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $220,583,723) 100.5% 245,708,804 10,054
Excess of Liabilities Over Other Assets (.5) (1,325,759) (54)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $244,383,045 $10,000
======================================================================================================================
* Non-income producing
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS FOCUSED EQUITY FUND
Dear Investor:
This is the annual report for the First Investors Focused Equity Fund for
the fiscal year ended September 30, 2005. During the period, the Fund's
return on a net asset value basis was 11.4% for Class A shares and 10.7% for
Class B shares, including dividends of 1.8 cents per share on Class A shares
and 0.4 cents per share on Class B shares.
The Fund's performance during the reporting period was driven by a
combination of the solid performance of the equity markets and the
concentrated nature of the Fund. As with any concentrated equity fund, stock
selection had a key impact on performance. The Fund was helped by top
absolute contributors ConocoPhillips, which benefited from higher oil
prices, and Altria Group, which rose on a positive litigation outcome and
the company's decision to increase its dividend. Individual detractors
during the period included Pfizer and First Data.
The Fund's relative performance versus the Standard & Poor's 500 Index was
helped by strong security selection across a number of sectors including
consumer staples, industrials and financials. Negative security selection
was concentrated in the information technology sector.
The Fund's bias towards the mega-capitalization portion of the market was a
drag on performance relative to the Standard & Poor's 500 Index as this
segment underperformed the overall Index during the period. However, this
was more than outweighed by superior stock selection within this market
segment.
Sector allocation was a moderate negative as the effects of the Fund's
underweight allocation to the strong performing utilities sector outweighed
the positive results from the Fund's overweight allocation to the energy and
information technology sectors. Because the Fund is concentrated in less
than 50 securities, sector allocation tends to have less of an impact on
Fund performance than stock selection.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ MATTHEW E. MEGARGEL
Matthew E. Megargel
Portfolio Manager
October 31, 2005
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 costs of other mutual
funds. Please refer to page 2 for a detailed explanation of the information
presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(4/1/05) (9/30/05) (4/1/05-9/30/05)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,054.54 $9.53
Hypothetical
(5% annual return before expenses) $1,000.00 $1,015.79 $9.35
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,050.44 $13.11
Hypothetical
(5% annual return before expenses) $1,000.00 $1,012.29 $12.86
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.85% for Class A shares and 2.55%
for Class B shares, multiplied by the average account value over the period, multiplied
by 183/365 (to reflect the one-half year period).
Portfolio Composition
TOP TEN SECTORS
(BAR CHART DATA:)
Health Care 17.6%
Financials 16.8%
Information Technology 15.4%
Energy 11.1%
Industrials 10.8%
Consumer Staples 10.6%
Consumer Discretionary 10.2%
Materials 3.6%
Telecommunication Services 2.1%
Utilities 0.9%
Portfolio holdings and allocations are subject to change. Percentages are as
of September 30, 2005, and are based on the total value of investments.
Cumulative Performance Information
FIRST INVESTORS FOCUSED EQUITY FUND
Comparison of change in value of $10,000 investment in the First Investors
Focused Equity Fund (Class A shares) and the Standard & Poor's 500 Index.
First Investors Focused Equity Fund
Graph Plot Points
for the periods Ended 9/30/05
Focused
Equity S&P 500
Fund Index
Mar-99 $ 9,425 $10,000
Sep-99 10,254 9,957
Sep-00 9,783 11,279
Sep-01 7,276 8,277
Sep-02 5,401 6,581
Sep-03 6,814 8,187
Sep-04 7,380 9,322
Sep-05 8,218 10,464
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 11.35% 4.92%
Five Years (3.43%) (4.56%)
Since Inception (3/22/99) (2.08%) (2.96%)
Class B Shares
One Year 10.68% 6.68%
Five Years (4.07%) (4.46%)
Since Inception (3/22/99) (2.75%) (2.75%)
The graph compares a $10,000 investment in the First Investors Focused
Equity Fund (Class A shares) beginning 3/22/99 (inception date) with a
theoretical investment in the Standard & Poor's 500 Index (the "Index"). The
Index is an unmanaged capitalization-weighted index of 500 stocks designed
to measure performance of the broad domestic economy through changes in the
aggregate market value of such stocks, which represent all major industries.
It is not possible to invest directly in this Index. In addition, the Index
does not take into account fees and expenses that an investor would incur in
purchasing securities in the Index. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed that the
maximum sales charge was deducted from the initial $10,000 investment in the
Fund. Class B shares performance may be greater than or less than that shown
in the line graph above for Class A shares based on differences in sales
loads and fees paid by shareholders investing in the different lasses.
* Average Annual Total Return figures (for the periods ended 9/30/05)
include the reinvestment of all dividends and distributions. "N.A.V. Only"
returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of 5.75%
(prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns are adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). During certain of the periods shown, some
of the expenses of the Fund were waived or assumed. If such expenses had
been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual
Total Returns Since Inception would have been (2.97%). The Class B "S.E.C.
Standardized" Average Annual Total Returns Since Inception would have been
(2.76%). Results represent past performance and do not indicate future
results. The graph and the returns shown do not reflect the deduction of
taxes that a shareholder would pay on distributions or the redemption of
fund shares. Investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than the original cost. Standard & Poor's 500 Index figures are from
Standard & Poor's and all other figures are from First Investors Management
Company, Inc.
Portfolio of Investments
FIRST INVESTORS FOCUSED EQUITY FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--99.9%
Consumer Discretionary--10.3%
24,600 * Comcast Corporation - Special Class "A" $707,988 $123
19,500 * Kohl's Corporation 978,510 170
16,500 Lowe's Companies, Inc. 1,062,600 185
128,600 Time Warner, Inc. 2,328,946 406
25,500 Viacom, Inc. - Class "B" 841,755 147
- ----------------------------------------------------------------------------------------------------------------------
5,919,799 1,031
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--10.7%
23,300 Altria Group, Inc. 1,717,443 299
14,200 Coca-Cola Company 613,298 107
25,500 PepsiCo, Inc. 1,446,105 252
39,600 Procter & Gamble Company 2,354,616 410
- ----------------------------------------------------------------------------------------------------------------------
6,131,462 1,068
- ----------------------------------------------------------------------------------------------------------------------
Energy--11.2%
37,400 ConocoPhillips 2,614,634 455
17,700 GlobalSantaFe Corporation 807,474 141
24,500 Noble Energy, Inc. 1,149,050 200
21,900 Schlumberger, Ltd. 1,847,922 322
- ----------------------------------------------------------------------------------------------------------------------
6,419,080 1,118
- ----------------------------------------------------------------------------------------------------------------------
Financials--16.9%
15,220 American International Group, Inc. 943,031 164
50,200 Bank of America Corporation 2,113,420 368
39,500 Citigroup, Inc. 1,798,040 313
13,100 Golden West Financial Corporation 778,009 136
23,700 Merrill Lynch & Company, Inc. 1,453,995 253
13,500 MetLife, Inc. 672,705 117
21,784 St. Paul Travelers Companies, Inc. 977,448 170
20,000 State Street Corporation 978,400 171
- ----------------------------------------------------------------------------------------------------------------------
9,715,048 1,692
- ----------------------------------------------------------------------------------------------------------------------
Health Care--17.7%
24,300 Abbott Laboratories 1,030,320 179
15,500 * Amgen, Inc. 1,234,885 215
19,400 Baxter International, Inc. 773,478 135
15,200 Eli Lilly & Company 813,504 142
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS FOCUSED EQUITY FUND
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care (continued)
10,300 * Genzyme Corporation $737,892 $129
30,100 Medtronic, Inc. 1,613,962 281
36,800 Pfizer, Inc. 918,896 160
40,700 Schering-Plough Corporation 856,735 149
19,000 * WellPoint, Inc. 1,440,580 251
16,400 Wyeth 758,828 132
- ----------------------------------------------------------------------------------------------------------------------
10,179,080 1,773
- ----------------------------------------------------------------------------------------------------------------------
Industrials--10.9%
17,600 Boeing Company 1,195,920 208
9,500 General Dynamics Corporation 1,135,725 198
58,100 General Electric Company 1,956,227 341
22,000 Ingersoll-Rand Company - Class "A" 841,060 147
21,600 United Technologies Corporation 1,119,744 195
- ----------------------------------------------------------------------------------------------------------------------
6,248,676 1,089
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--15.5%
25,900 Analog Devices, Inc. 961,926 168
35,200 * Cisco Systems, Inc. 631,136 110
46,600 * Corning, Inc. 900,778 157
16,800 * Dell, Inc. 574,560 100
19,800 First Data Corporation 792,000 138
101,800 Microsoft Corporation 2,619,315 456
10,300 * Research in Motion, Ltd. 704,520 123
22,600 Texas Instruments, Inc. 766,140 133
27,900 * Yahoo!, Inc. 944,136 165
- ----------------------------------------------------------------------------------------------------------------------
8,894,511 1,550
- ----------------------------------------------------------------------------------------------------------------------
Materials--3.7%
20,600 Du Pont (E.I.) de Nemours & Company 806,902 141
12,400 Newmont Mining Corporation 584,908 102
4,400 Rio Tinto PLC (ADR) 722,920 126
- ----------------------------------------------------------------------------------------------------------------------
2,114,730 369
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--2.1%
52,221 Sprint Nextel Corporation 1,241,815 215
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities--.9%
12,900 PG&E Corporation $506,325 $88
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $51,332,262) 57,370,526 9,993
- ----------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--1.0%
$544M UBS Securities, 3.31%, dated 9/30/05 to be
repurchased at $544,150 on 10/3/05
(collateralized by U.S. Treasury Bonds,
5.25%, 11/15/28, valued at $553,578)
(cost $544,000) 544,000 95
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $51,876,262) 100.9% 57,914,526 10,088
Excess of Liabilities Over Other Assets (.9) (503,679) (88)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $57,410,847 $10,000
======================================================================================================================
* Non-income producing
Summary of Abbreviations:
ADR American Depositary Receipts
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS GLOBAL FUND, INC.
Dear Investor:
This is the annual report for the First Investors Global Fund for the fiscal
year ended September 30, 2005. During the period, the Fund's return on a net
asset value basis was 19.1% for Class A shares and 18.1% for Class B shares.
The Fund's positive overall performance during the reporting period was
driven by improving global economies and solid performance of the equity
markets. Foreign markets outperformed U.S. domestic markets during the
period, illustrating the potential benefit of the Fund's global investment
approach. As measured by their respective MSCI regional indexes, emerging
markets led the way, returning 47%, followed by the Pacific Basin
(excluding Japan) with 35%. Japan and Europe also performed well, returning
27% and 25%, respectively.
Stock selection was strong across a number of sectors, particularly the
consumer staples and energy sectors. Within consumer staples, the Fund's
holdings in Japan Tobacco rose significantly during the period. Within the
energy sector, ConocoPhillips and Noble Energy were strong performers as
both stocks continued to be supported by rising oil prices. These positive
results were partially offset by negative stock selection in the information
technology sector. In addition, sector allocation decisions detracted from
the Fund's results during the period.
On a regional basis, the Fund benefited from strong results relative to the
MSCI All Country World Free Index from holdings in the U.S. and Japan.
However, these gains were offset by negative results from the Fund's
European holdings, which included Irish biotech company Elan. Shares of Elan
declined significantly after the company announced in late February that its
new multiple sclerosis drug, Tysabri, was associated with a fatal side
effect.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ TROND SKRAMSTAD
Trond Skramstad
Portfolio Manager
October 31, 2005
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 costs of other mutual
funds. Please refer to page 2 for a detailed explanation of the information
presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
(4/1/05) (9/30/05) (4/1/05-9/30/05)*
- ----------------------------------------------------------------------------------------------
Expense Example - Class A Shares
Actual $1,000.00 $1,089.51 $9.43
Hypothetical
(5% annual return before expenses) $1,000.00 $1,016.05 $9.10
- ----------------------------------------------------------------------------------------------
Expense Example - Class B Shares
Actual $1,000.00 $1,084.86 $13.07
Hypothetical
(5% annual return before expenses) $1,000.00 $1,012.54 $12.61
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of 1.80% for Class A shares and 2.50%
for Class B shares, multiplied by the average account value over the period, multiplied
by 183/365 (to reflect the one-half year period).
Portfolio Composition
TOP TEN COUNTRIES
(BAR CHART DATA:)
United States 50.3%
Japan 12.2%
United Kingdom 6.9%
France 6.5%
Switzerland 5.6%
Canada 3.7%
Germany 2.6%
Netherlands 1.6%
Taiwan 1.3%
Hong Kong 1.2%
Portfolio holdings and allocations are subject to change. Percentages are as
of September 30, 2005, and are based on the total value of investments.
Cumulative Performance Information
FIRST INVESTORS GLOBAL FUND, INC.
Comparison of change in value of $10,000 investment in the First Investors
Global Fund, Inc. (Class A shares) and the Morgan Stanley Capital
International ("MSCI") All Country World Free Index.
First Investors Global Fund, Inc.
Graph Plot Points
for the periods Ended 9/30/05
Global MSCI All Country
Fund World Free Index
Dec-95 $ 9,425 $10,000
Dec-96 10,786 11,320
Dec-97 11,647 13,017
Sep-98 11,502 13,107
Sep-99 14,909 17,157
Sep-00 16,658 18,532
Sep-01 11,849 13,316
Sep-02 9,620 10,948
Sep-03 11,735 13,879
Sep-04 13,487 16,382
Sep-05 16,057 19,812
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 19.06% 12.24%
Five Years (0.73%) (1.89%)
Ten Years 5.98% 5.35%
Class B Shares
One Year 18.12% 14.12%
Five Years (1.45%) (1.85%)
Ten Years 5.15% 5.15%
The graph compares a $10,000 investment in the First Investors Global Fund,
Inc. (Class A shares) beginning 12/31/95 with a theoretical investment in
the MSCI All Country World Free Index (the "Index"). The Index represents
both the developed and the emerging markets. The Index includes 49 markets
of which emerging markets represent approximately 6.5%. It is not possible
to invest directly in this Index. In addition, the Index does not take into
account fees and expenses that an investor would incur in purchasing
securities in the Index. For purposes of the graph and the accompanying
table, unless otherwise indicated, it has been assumed that the maximum
sales charge was deducted from the initial $10,000 investment in the Fund
and all dividends and distributions were reinvested. Class B shares
performance may be greater than or less than that shown in the line graph
above for Class A shares based on differences in sales loads and fees paid
by shareholders investing in the different classes.
* Average Annual Total Return figures (for the periods ended 9/30/05)
include the reinvestment of all dividends and distributions. "N.A.V. Only"
returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of 5.75%
(prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C.
Standardized" returns are adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). Results represent past performance and do
not indicate future results.The graph and the returns shown do not reflect
the deduction of taxes that a shareholder would pay on distributions or the
redemption of fund shares. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than the original cost. MSCI All Country World Free
Index figures are from Morgan Stanley & Co., Inc. and all other figures are
from First Investors Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS GLOBAL FUND, INC.
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--97.8%
United States--48.2%
39,000 Abbott Laboratories $1,653,600 $65
72,500 * Alamosa Holdings, Inc. 1,240,475 49
37,500 Alcoa, Inc. 915,750 36
36,300 Altria Group, Inc. 2,675,673 106
36,200 * Amdocs, Ltd. 1,003,826 40
23,653 American International Group, Inc. 1,465,540 58
25,000 * Amgen, Inc. 1,991,750 79
12,600 Analog Devices, Inc. 467,964 19
16,200 Anheuser-Busch Companies, Inc. 697,248 28
79,500 Bank of America Corporation 3,346,950 132
30,800 Baxter International, Inc. 1,227,996 49
26,900 Boeing Company 1,827,855 72
15,600 Caterpillar, Inc. 916,500 36
55,400 * Cisco Systems, Inc. 993,322 39
63,249 Citigroup, Inc. 2,879,094 114
32,800 * Comcast Corporation - Special Class "A" 943,984 37
65,600 ConocoPhillips 4,586,096 181
113,200 * Corning, Inc. 2,188,156 86
9,700 D.R. Horton, Inc. 351,334 14
26,400 * Dell, Inc. 902,880 36
32,400 DuPont (E.I.) de Nemours & Company 1,269,108 50
22,500 Eli Lilly & Company 1,204,200 48
3,900 Federated Department Stores, Inc. 260,793 10
31,900 First Data Corporation 1,276,000 50
21,200 * Fisher Scientific International, Inc. 1,315,460 52
9,800 General Dynamics Corporation 1,171,590 46
93,300 General Electric Company 3,141,411 124
42,900 * Genzyme Corporation 3,073,356 121
39,400 GlobalSantaFe Corporation 1,797,428 71
20,600 Golden West Financial Corporation 1,223,434 48
27,900 * Health Net, Inc. 1,320,228 52
35,500 Hilton Hotels Corporation 792,360 31
37,400 Ingersoll-Rand Company - Class "A" 1,429,802 57
53,260 Intel Corporation 1,312,859 52
33,200 * Intuit, Inc. 1,487,692 59
31,500 * Kohl's Corporation 1,580,670 62
18,800 * Kroger Company 387,092 15
26,500 Lowe's Companies, Inc. 1,706,600 67
29,900 Market 2000+ Holders Trust 1,647,191 65
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS GLOBAL FUND, INC.
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
United States (continued)
48,200 Medtronic, Inc. $2,584,484 $102
8,900 * Mercury Interactive Corporation 352,440 14
38,200 Merrill Lynch & Company, Inc. 2,343,570 93
37,400 Michaels Stores, Inc. 1,236,444 49
163,900 Microsoft Corporation 4,217,147 167
32,600 Motorola, Inc. 720,134 28
12,500 * National-Oilwell Varco, Inc. 822,500 33
44,100 Newmont Mining Corporation 2,080,197 82
99,700 Noble Energy, Inc. 4,675,930 185
35,900 Northern Trust Corporation 1,814,745 72
15,100 Omnicare, Inc. 849,073 34
39,800 PepsiCo, Inc. 2,257,058 89
55,225 Pfizer, Inc. 1,378,968 54
90,500 PG&E Corporation 3,552,125 140
16,800 Precision Castparts Corporation 892,080 35
63,500 Procter & Gamble Company 3,775,710 149
60,600 Schering-Plough Corporation 1,275,630 50
24,000 Schlumberger, Ltd. 2,025,120 80
23,200 Simon Property Group, Inc. (REIT) 1,719,584 68
81,679 Sprint Nextel Corporation 1,942,327 77
35,025 St. Paul Travelers Companies, Inc. 1,571,572 62
31,400 State Street Corporation 1,536,088 61
5,000 Tesoro Corporation 336,200 13
35,600 Texas Instruments, Inc. 1,206,840 48
203,800 Time Warner, Inc. 3,690,818 146
25,500 UnionBanCal Corporation 1,777,860 70
34,700 United Technologies Corporation 1,798,848 71
36,900 UnumProvident Corporation 756,450 30
42,200 Viacom, Inc. - Class "B" 1,393,022 55
20,400 Vulcan Materials Company 1,513,884 60
30,600 * WellPoint, Inc. 2,320,092 92
26,600 Wyeth 1,230,782 49
44,700 * Yahoo!, Inc. 1,512,648 60
25,000 Yum! Brands, Inc. 1,210,250 48
- ----------------------------------------------------------------------------------------------------------------------
122,043,887 4,822
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Japan--12.1%
62,100 Canon, Inc. $3,358,682 $133
56,000 * Daiichi Sankyo Company, Ltd. 1,148,756 45
326 East Japan Railway Company 1,863,843 74
63,400 Eisai Company, Ltd. 2,712,987 107
44,100 Electric Power Development Company, Ltd. 1,474,669 58
148 Japan Tobacco, Inc. 2,337,392 92
7,300 Keyence Corporation 1,838,204 73
26 Mitsubishi Tokyo Financial Group, Inc. 341,803 13
590 Nippon Telegraph & Telephone Corporation 2,904,711 115
27,000 Promise Company, Ltd. 2,003,441 79
56,300 * Seven & I Holdings Company, Ltd. 1,867,725 74
23,200 Takeda Pharmaceutical Company, Ltd. 1,383,730 55
31,610 Takefuji Corporation 2,468,224 97
614 * UFJ Holdings, Inc.+ 5,000,194 198
- ----------------------------------------------------------------------------------------------------------------------
30,704,361 1,213
- ----------------------------------------------------------------------------------------------------------------------
United Kingdom--6.9%
86,842 AstraZeneca PLC 4,048,202 160
65,833 Centrica PLC 286,504 11
345,254 EMI Group PLC 1,481,161 58
54,571 Imperial Tobacco Group PLC 1,567,833 62
129,810 Reckitt Benckiser PLC 3,965,996 157
34,921 Rio Tinto PLC 1,432,029 57
60,314 Royal Bank of Scotland Group PLC 1,716,825 68
4,569 Royal Dutch Shell PLC - Class "A" 151,321 6
1,071,012 Vodafone Group PLC 2,794,719 110
- ----------------------------------------------------------------------------------------------------------------------
17,444,590 689
- ----------------------------------------------------------------------------------------------------------------------
France--6.5%
58,795 * Alcatel SA 785,417 31
21,888 Essilor International SA 1,818,216 72
20,686 LVMH Moet Hennessy Louis Vuitton SA 1,710,885 68
39,010 PSA Peugeot Citroen 2,657,325 105
27,469 Sanofi-Aventis 2,276,857 90
14,243 Total SA 3,899,769 154
96,403 Vivendi Universal SA 3,156,753 125
- ----------------------------------------------------------------------------------------------------------------------
16,305,222 645
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS GLOBAL FUND, INC.
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Switzerland--5.6%
33,340 Credit Suisse Group - Registered $1,481,778 $58
13,742 Nestle SA - Registered 4,039,727 160
12,789 Roche Holding AG - Genusscheine 1,783,566 70
64,100 UBS AG - Registered 5,469,071 216
8,227 * Zurich Financial Services AG - Registered 1,407,061 56
- ----------------------------------------------------------------------------------------------------------------------
14,181,203 560
- ----------------------------------------------------------------------------------------------------------------------
Canada--3.7%
36,700 Alcan, Inc. 1,167,785 46
18,600 * Biovail Corporation 434,682 17
72,800 Canadian Pacific Railway, Ltd. 3,135,054 124
30,100 Fairmont Hotels & Resorts, Inc. 1,005,942 40
24,200 Petro-Canada 1,012,330 40
13,500 * Research in Motion, Ltd. 923,400 36
35,600 Talisman Energy, Inc. 1,742,271 69
- ----------------------------------------------------------------------------------------------------------------------
9,421,464 372
- ----------------------------------------------------------------------------------------------------------------------
Germany--2.6%
81,339 * Bayerische Hypo-und Vereinsbank AG 2,294,748 90
88,465 Deutsche Telekom AG - Registered 1,614,796 64
28,719 E.ON AG 2,652,274 105
- ----------------------------------------------------------------------------------------------------------------------
6,561,818 259
- ----------------------------------------------------------------------------------------------------------------------
Netherlands--1.6%
294,584 * Koninklijke Ahold NV 2,233,984 88
70,602 Koninklijke (Royal) Philips Electronics NV 1,882,028 75
- ----------------------------------------------------------------------------------------------------------------------
4,116,012 163
- ----------------------------------------------------------------------------------------------------------------------
Taiwan--1.3%
123,735 AU Optronics Corporation (ADR) 1,603,606 63
94,600 Chunghwa Telecom Company, Ltd. (ADR) 1,751,046 69
- ----------------------------------------------------------------------------------------------------------------------
3,354,652 132
- ----------------------------------------------------------------------------------------------------------------------
Hong Kong--1.2%
229,500 Esprit Holdings, Ltd. 1,715,833 68
130,000 Sun Hung Kai Properties, Ltd. 1,346,460 53
- ----------------------------------------------------------------------------------------------------------------------
3,062,293 121
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Brazil--1.2%
46,000 Companhia Vale Do Rio Doce (ADR) $2,017,560 $80
14,100 Petroleo Brasileiro SA--Petrobras (ADR) 1,008,009 40
- ----------------------------------------------------------------------------------------------------------------------
3,025,569 120
- ----------------------------------------------------------------------------------------------------------------------
Spain--1.2%
169,108 Banco Bilbao Vizcaya Argentaria SA 2,974,676 118
- ----------------------------------------------------------------------------------------------------------------------
Australia--.9%
230,698 Santos, Ltd. 2,203,919 87
5,300 Woodside Petroleum, Ltd. (ADR) 145,704 6
- ----------------------------------------------------------------------------------------------------------------------
2,349,623 93
- ----------------------------------------------------------------------------------------------------------------------
Sweden--.7%
505,070 Telefonaktiebolaget LM Ericsson AB - Class "B" 1,849,200 73
- ----------------------------------------------------------------------------------------------------------------------
Russia--.7%
43,900 Mobile TeleSystems (ADR) 1,785,852 70
- ----------------------------------------------------------------------------------------------------------------------
Ireland--.6%
34,100 * Ryanair Holdings PLC (ADR) 1,552,573 61
- ----------------------------------------------------------------------------------------------------------------------
South Korea--.6%
24,790 SK Corporation 1,440,034 57
- ----------------------------------------------------------------------------------------------------------------------
Denmark--.6%
24,320 Carlsberg A/S - Class "B" 1,426,266 56
- ----------------------------------------------------------------------------------------------------------------------
Italy--.5%
269,540 Banca Intesa SpA 1,260,072 50
- ----------------------------------------------------------------------------------------------------------------------
Poland--.4%
53,514 Polski Koncern Naftowy Orlen SA 1,100,799 43
- ----------------------------------------------------------------------------------------------------------------------
China--.4%
915,500 * China Shenhua Energy Company, Ltd. 1,073,900 42
- ----------------------------------------------------------------------------------------------------------------------
Austria--.3%
15,622 Wienerberger AG 617,587 25
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $205,169,157) 247,651,653 9,784
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS GLOBAL FUND, INC.
September 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Warrants or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
WARRANTS--.0%
United States
708 * Lucent Technologies, Inc. (expiring 12/10/07)
(cost $0) $673 $--
- ----------------------------------------------------------------------------------------------------------------------
$4,925M REPURCHASE AGREEMENT--2.0%
UBS Securities, 3.31% dated 9/30/05, to be
repurchased at $4,926,358 on 10/3/05
(collateralized by U.S. Treasury Bonds,
8.875%, 2/15/19, valued at $5,011,799)
(cost $4,925,000) 4,925,000 196
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $210,094,157) 99.8% 252,577,326 9,980
Other Assets, Less Liabilities .2 515,627 20
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $253,092,953 $10,000
======================================================================================================================
* Non-income producing
+ Security valued at fair value (see Note 1A)
Summary Abbreviations:
ADR American Depositary Receipts
REIT Real Estate Investment Trust
See notes to financial statements
Sector diversification of the portfolio was as follows:
- ------------------------------------------------------------------------------
Percentage
Sector of Net Assets Value
- ------------------------------------------------------------------------------
Energy......................................... 11.1% $28,021,330
Pharmaceuticals & Biotechnology................ 10.1 25,597,066
Diversified Financials......................... 7.9 19,996,011
Banks.......................................... 7.9 19,936,562
Technology Hardware & Equipment................ 6.0 15,163,674
Food, Beverage & Tobacco....................... 5.9 15,001,197
Telecommunication Services..................... 5.5 14,033,926
Capital Goods.................................. 4.7 11,795,673
Health Care Equipment & Services............... 4.5 11,435,549
Media.......................................... 4.2 10,665,738
Materials...................................... 4.1 10,396,313
Software & Services............................ 3.9 9,849,753
Utilities...................................... 3.1 7,965,572
Household & Personal Products.................. 3.0 7,741,706
Transportation................................. 2.6 6,551,470
Retailing...................................... 2.6 6,500,340
Insurance...................................... 2.1 5,200,623
Food & Staples Retailing....................... 1.8 4,488,801
Consumer Durables & Apparel.................... 1.6 3,944,247
Real Estate.................................... 1.2 3,066,044
Consumer Services.............................. 1.2 3,008,552
Semiconductors & Semiconductor Equipment....... 1.2 2,987,663
Automobiles & Components....................... 1.0 2,657,325
Pooled Vehicle................................. 0.6 1,647,191
Repurchase Agreement........................... 2.0 4,925,000
- ------------------------------------------------------------------------------
Total Value of Investments 99.8 252,577,326
Other Assets, Less Liabilities .2 515,627
- ------------------------------------------------------------------------------
Net Assets 100.0% $253,092,953
==============================================================================
See notes to financial statements
Statements of Assets and Liabilities
FIRST INVESTORS
September 30, 2005
- --------------------------------------------------------------------------------------------------------------
TOTAL GROWTH &
RETURN VALUE BLUE CHIP INCOME
- --------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $285,960,612 $239,263,099 $364,347,423 $558,476,435
============ ============ ============ ============
At value (Note 1A) $321,484,198 $291,236,580 $472,058,170 $679,054,478
Cash 335,303 877,040 136,069 1,070,195
Receivables:
Investment securities sold 652,003 2,526,448 2,629,212 2,113,027
Dividends and interest 1,257,948 540,593 445,204 626,904
Shares sold 697,836 1,118,947 334,996 1,216,968
Forward currency contracts (Note 4) -- -- -- --
Other assets 14,927 11,912 26,847 32,371
------------ ------------ ------------ ------------
Total Assets 324,442,215 296,311,520 475,630,498 684,113,943
------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased 4,492,824 1,377,550 1,416,092 4,420,298
Shares redeemed 547,232 361,908 692,794 813,373
Dividends payable 17,901 16,424 23,750 5,248
Accrued advisory fees 196,709 180,441 292,839 405,461
Accrued shareholder servicing costs 69,089 68,378 135,631 161,977
Accrued expenses 29,129 33,875 13,293 24,094
------------ ------------ ------------ ------------
Total Liabilities 5,352,884 2,038,576 2,574,399 5,830,451
------------ ------------ ------------ ------------
Net Assets $319,089,331 $294,272,944 $473,056,099 $678,283,492
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $294,435,732 $290,533,350 $477,968,418 $588,258,354
Undistributed net investment income (deficit) (204,518) 593,069 439 808,110
Accumulated net realized gain (loss) on
investments and foreign currency transactions (10,665,469) (48,826,956) (112,623,505) (31,361,015)
Net unrealized appreciation in value
of investments and foreign
currency transactions 35,523,586 51,973,481 107,710,747 120,578,043
------------ ------------ ------------ ------------
Total $319,089,331 $294,272,944 $473,056,099 $678,283,492
============ ============ ============ ============
Net Assets:
Class A $281,259,706 $267,308,724 $420,920,491 $596,683,911
Class B $ 37,829,625 $ 26,964,220 $ 52,135,608 $ 81,599,581
Shares outstanding (Note 5):
Class A 20,194,093 40,418,281 20,430,317 43,649,880
Class B 2,755,471 4,140,699 2,701,212 6,249,165
Net asset value and redemption price
per share - Class A $13.93 $6.61 $20.60 $13.67
============ ============ ============ ============
Maximum offering price per share - Class A
(Net asset value/.9425)* $14.78 $7.01 $21.86 $14.50
============ ============ ============ ============
Net asset value and offering price per share -
Class B (Note 5) $13.73 $6.51 $19.30 $13.06
============ ============ ============ ============
Statements of Assets and Liabilities (Continued)
FIRST INVESTORS
September 30, 2005
- ---------------------------------------------------------------------------------------------------------------------------
ALL-CAP MID-CAP SPECIAL FOCUSED
GROWTH OPPORTUNITY SITUATIONS EQUITY GLOBAL
- ---------------------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $157,953,867 $353,056,395 $220,583,723 $51,876,262 $210,094,157
============ ============ ============ ============ ============
At value (Note 1A) $190,832,650 $466,622,838 $245,708,804 $57,914,526 $252,577,326
Cash 82,444 206,202 56,134 90,745 126,552
Receivables:
Investment securities sold 2,149,083 -- 136,097 167,590 2,396,881
Dividends and interest 64,434 232,341 170,102 53,185 462,044
Shares sold 334,199 1,181,244 316,107 32,809 221,246
Forward currency contracts (Note 4) -- -- -- -- 2,182
Other assets 9,334 18,376 11,483 3,866 33,116
------------ ------------ ------------ ------------ ------------
Total Assets 193,472,144 468,261,001 246,398,727 58,262,721 255,819,347
------------ ------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased 48,861 156,038 1,388,687 655,833 2,122,814
Shares redeemed 359,326 377,927 353,101 118,629 302,561
Dividends payable -- -- -- -- --
Accrued advisory fees 117,473 284,846 149,432 35,653 206,008
Accrued shareholder servicing costs 60,531 121,259 80,600 27,200 68,804
Accrued expenses 14,174 24,738 43,862 14,559 26,207
------------ ------------ ------------ ------------ ------------
Total Liabilities 600,365 964,808 2,015,682 851,874 2,726,394
------------ ------------ ------------ ------------ ------------
Net Assets $192,871,779 $467,296,193 $244,383,045 $57,410,847 $253,092,953
============ ============ ============ ============ ============
Net Assets Consist of:
Capital paid in $165,189,371 $340,655,116 $225,527,126 $75,349,746 $215,624,336
Undistributed net investment income (deficit) -- -- -- 56,846 --
Accumulated net realized gain (loss) on
investments and foreign currency transactions (5,196,375) 13,074,634 (6,269,162) (24,034,009) (5,014,136)
Net unrealized appreciation in value
of investments and foreign
currency transactions 32,878,783 113,566,443 25,125,081 6,038,264 42,482,753
------------ ------------ ------------ ------------ ------------
Total $192,871,779 $467,296,193 $244,383,045 $57,410,847 $253,092,953
============ ============ ============ ============ ============
Net Assets:
Class A $169,469,936 $410,238,232 $223,573,998 $48,060,138 $238,614,232
Class B $ 23,401,843 $ 57,057,961 $ 20,809,047 $ 9,350,709 $ 14,478,721
Shares outstanding (Note 5):
Class A 19,213,230 14,527,330 10,939,271 5,523,358 33,809,118
Class B 2,745,508 2,189,506 1,111,674 1,123,176 2,219,729
Net asset value and redemption price
per share - Class A $8.82 $28.24 $20.44 $8.70 $7.06
============ ============ ============ ============ ============
Maximum offering price per share - Class A
(Net asset value/.9425)* $9.36 $29.96 $21.69 $9.23 $7.49
============ ============ ============ ============ ============
Net asset value and offering price per share -
Class B (Note 5) $8.52 $26.06 $18.72 $8.33 $6.52
============ ============ ============ ============ ============
* On purchases of $100,000 or more, the sales charge is reduced.
See notes to financial statements
Statements of Operations
FIRST INVESTORS
Year Ended September 30, 2005
- --------------------------------------------------------------------------------------------------------------
TOTAL GROWTH &
RETURN VALUE BLUE CHIP INCOME
- --------------------------------------------------------------------------------------------------------------
Investment Income
Dividends $ 4,054,252 $ 6,405,106 $ 9,413,015 $ 13,382,888
Interest 5,093,151 600,467 232,654 23,784
------------ ------------ ------------ ------------
Total income 9,147,403 7,005,573 9,645,669 13,406,672
------------ ------------ ------------ ------------
Expenses (Notes 1 and 3):
Advisory fees 2,720,317 1,917,333 4,124,083 4,651,191
Distribution plan expenses - Class A 776,007 689,917 1,277,654 1,665,770
Distribution plan expenses - Class B 373,733 256,722 573,330 840,463
Shareholder servicing costs 776,273 749,097 1,572,123 1,837,987
Professional fees 49,189 47,948 87,744 96,682
Custodian fees 35,219 25,386 43,999 47,134
Registration fees 39,372 38,572 38,918 37,418
Reports to shareholders 49,513 47,741 95,873 111,105
Directors/trustees' fees 10,220 8,690 16,981 21,859
Other expenses 71,471 51,889 101,307 128,535
------------ ------------ ------------ ------------
Total expenses 4,901,314 3,833,295 7,932,012 9,438,144
Less: Expenses waived (500,000) -- (500,000) --
Expenses paid indirectly (14,986) (19,998) (18,275) (11,558)
------------ ------------ ------------ ------------
Net expenses 4,386,328 3,813,297 7,413,737 9,426,586
------------ ------------ ------------ ------------
Net investment income (loss) 4,761,075 3,192,276 2,231,932 3,980,086
------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency
Transactions (Note 2):
Net realized gain on investments
and foreign currency transactions 14,327,122 10,988,910 27,341,802 52,239,623
Net unrealized appreciation (depreciation)
of investments and foreign
currency transactions 6,264,904 13,771,189 19,535,734 22,329,279
------------ ------------ ------------ ------------
Net gain on investments and foreign
currency transactions 20,592,026 24,760,099 46,877,536 74,568,902
------------ ------------ ------------ ------------
Net Increase in Net Assets Resulting
from Operations $ 25,353,101 $ 27,952,375 $ 49,109,468 $ 78,548,988
============ ============ ============ ============
Statements of Operations (Continued)
FIRST INVESTORS
Year Ended September 30, 2005
- ---------------------------------------------------------------------------------------------------------------------------
ALL-CAP MID-CAP SPECIAL FOCUSED
GROWTH OPPORTUNITY SITUATIONS EQUITY GLOBAL
- ---------------------------------------------------------------------------------------------------------------------------
Investment Income
Dividends $ 1,407,322 $ 4,133,151 $ 2,011,795 $ 1,285,388 $ 4,273,366+
Interest 173,349 187,212 197,503 22,148 145,775
------------ ------------ ------------ ------------ ------------
Total income 1,580,671 4,320,363 2,209,298 1,307,536 4,419,141
------------ ------------ ------------ ------------ ------------
Expenses (Notes 1 and 3):
Advisory fees 1,301,509 3,468,957 2,232,767 444,632 2,403,146
Distribution plan expenses - Class A 454,247 1,030,960 629,222 147,564 676,681
Distribution plan expenses - Class B 221,188 522,076 212,948 100,962 147,574
Shareholder servicing costs 724,544 1,392,045 983,218 331,597 789,156
Professional fees 34,273 56,392 68,857 23,414 63,018
Custodian fees 14,804 34,180 28,559 7,753 120,094
Registration fees 40,234 39,418 39,918 41,094 46,541
Reports to shareholders 46,732 87,184 105,792 21,610 61,559
Directors/trustees' fees 5,476 13,396 7,981 2,111 8,345
Other expenses 43,470 78,492 52,118 13,774 75,246
------------ ------------ ------------ ------------ ------------
Total expenses 2,886,477 6,723,100 4,361,380 1,134,511 4,391,360
Less: Expenses waived -- (500,000) (500,000) -- --
Expenses paid indirectly (2,590) (14,774) (22,771) (1,159) (1,446)
------------ ------------ ------------ ------------ ------------
Net expenses 2,883,887 6,208,326 3,838,609 1,133,352 4,389,914
------------ ------------ ------------ ------------ ------------
Net investment income (loss) (1,303,216) (1,887,963) (1,629,311) 174,184 29,227
------------ ------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency
Transactions (Note 2):
Net realized gain on investments
and foreign currency transactions 12,586,390 25,408,825 54,920,845 2,888,567 26,274,478
Net unrealized appreciation (depreciation)
of investments and foreign
currency transactions 9,837,022 61,015,861 (9,477,244) 3,284,026 15,303,113
------------ ------------ ------------ ------------ ------------
Net gain on investments and foreign
currency transactions 22,423,412 86,424,686 45,443,601 6,172,593 41,577,591
------------ ------------ ------------ ------------ ------------
Net Increase in Net Assets Resulting
from Operations $ 21,120,196 $ 84,536,723 $ 43,814,290 $ 6,346,777 $ 41,606,818
============ ============ ============ ============ ============
+ Net of $314,608 foreign taxes withheld
See notes to financial statements
Statements of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN VALUE
---------------------------- ----------------------------
Year Ended September 30 2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $ 4,761,075 $ 3,537,896 $ 3,192,276 $ 2,050,767
Net realized gain on investments 14,327,122 8,318,115 10,988,910 4,056,548
Net unrealized appreciation of investments 6,264,904 8,527,394 13,771,189 25,404,854
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 25,353,101 20,383,405 27,952,375 31,512,169
------------ ------------ ------------ ------------
Dividends to Shareholders
Net investment income - Class A (4,688,964) (3,344,902) (2,633,134) (1,866,906)
Net investment income - Class B (428,201) (318,565) (122,898) (112,863)
------------ ------------ ------------ ------------
Total dividends (5,117,165) (3,663,467) (2,756,032) (1,979,769)
------------ ------------ ------------ ------------
Share Transactions*
Class A:
Proceeds from shares sold 64,070,678 67,816,731 84,851,705 51,007,936
Reinvestment of dividends 4,613,539 3,288,426 2,574,863 1,814,820
Cost of shares redeemed (36,254,876) (31,026,815) (27,688,829) (19,645,255)
------------ ------------ ------------ ------------
32,429,341 40,078,342 59,737,739 33,177,501
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 5,259,203 9,344,252 6,026,435 5,777,938
Reinvestment of dividends 425,505 316,238 121,750 111,791
Cost of shares redeemed (6,076,543) (4,776,454) (5,162,063) (4,941,142)
------------ ------------ ------------ ------------
(391,835) 4,884,036 986,122 948,587
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions 32,037,506 44,962,378 60,723,861 34,126,088
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 52,273,442 61,682,316 85,920,204 63,658,488
Net Assets
Beginning of year 266,815,889 205,133,573 208,352,740 144,694,252
------------ ------------ ------------ ------------
End of year + $319,089,331 $266,815,889 $294,272,944 $208,352,740
============ ============ ============ ============
+Includes undistributed net investment income (deficit) of $ (204,518) $ (264,926) $ 593,069 $ 156,825
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 4,699,343 5,268,212 13,262,294 8,950,654
Issued for dividends reinvested 336,103 252,536 396,159 310,958
Redeemed (2,656,447) (2,410,468) (4,319,198) (3,441,839)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding 2,378,999 3,110,280 9,339,255 5,819,773
============ ============ ============ ============
Class B:
Sold 393,326 737,727 960,339 1,032,020
Issued for dividends reinvested 31,456 24,614 19,022 19,427
Redeemed (452,242) (375,421) (818,095) (882,554)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (27,460) 386,920 161,266 168,893
============ ============ ============ ============
Statements of Changes in Net Assets (Continued)
FIRST INVESTORS
- ----------------------------------------------------------------------------------------------------------------------------------
BLUE CHIP GROWTH & INCOME
---------------------------- ----------------------------
Year Ended September 30 2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $ 2,231,932 $ (283,785) $ 3,980,086 $ 2,341,691
Net realized gain on investments 27,341,802 25,571,788 52,239,623 36,796,326
Net unrealized appreciation of investments 19,535,734 14,361,975 22,329,279 27,753,508
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 49,109,468 39,649,978 78,548,988 66,891,525
------------ ------------ ------------ ------------
Dividends to Shareholders
Net investment income - Class A (2,052,222) -- (4,113,800) (1,198,784)
Net investment income - Class B (179,271) -- (201,083) --
------------ ------------ ------------ ------------
Total dividends (2,231,493) -- (4,314,883) (1,198,784)
------------ ------------ ------------ ------------
Share Transactions*
Class A:
Proceeds from shares sold 44,068,883 59,861,560 105,630,410 105,331,802
Reinvestment of dividends 2,028,913 -- 4,067,634 1,186,897
Cost of shares redeemed (80,924,729) (62,755,398) (76,352,083) (63,168,639)
------------ ------------ ------------ ------------
(34,826,933) (2,893,838) 33,345,961 43,350,060
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 3,947,403 8,311,100 8,233,185 14,981,290
Reinvestment of dividends 178,831 -- 200,260 --
Cost of shares redeemed (18,447,695) (15,084,253) (20,089,693) (17,923,509)
------------ ------------ ------------ ------------
(14,321,461) (6,773,153) (11,656,248) (2,942,219)
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions (49,148,394) (9,666,991) 21,689,713 40,407,841
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (2,270,419) 29,982,987 95,923,818 106,100,582
Net Assets
Beginning of year 475,326,518 445,343,531 582,359,674 476,259,092
------------ ------------ ------------ ------------
End of year + $473,056,099 $475,326,518 $678,283,492 $582,359,674
============ ============ ============ ============
+Includes undistributed net investment income (deficit) of $ 439 $ -- $ 808,110 $ 1,142,907
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 2,197,308 3,172,176 8,066,584 8,833,243
Issued for dividends reinvested 98,491 -- 306,678 97,777
Redeemed (4,035,467) (3,335,866) (5,827,638) (5,290,872)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding (1,739,668) (163,690) 2,545,624 3,640,148
============ ============ ============ ============
Class B:
Sold 209,604 466,882 659,640 1,312,512
Issued for dividends reinvested 9,266 -- 15,843 --
Redeemed (980,107) (846,873) (1,603,975) (1,568,845)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (761,237) (379,991) (928,492) (256,333)
============ ============ ============ ============
See notes to financial statements
Statements of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------------------------------------------------------------------------------------
ALL-CAP GROWTH MID-CAP OPPORTUNITY
---------------------------- ----------------------------
Year Ended September 30 2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $ (1,303,216) $ (1,549,253) $ (1,887,963) $ (1,639,804)
Net realized gain on investments 12,586,390 3,952,080 25,408,825 20,378,683
Net unrealized appreciation (depreciation) of investments 9,837,022 12,347,189 61,015,861 24,729,598
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 21,120,196 14,750,016 84,536,723 43,468,477
------------ ------------ ------------ ------------
Dividends to Shareholders
Net investment income - Class A -- -- -- --
Net investment income - Class B -- -- -- --
------------ ------------ ------------ ------------
Total dividends -- -- -- --
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 41,188,051 52,765,310 99,735,632 79,643,493
Reinvestment of dividends -- -- -- --
Cost of shares redeemed (20,615,450) (11,769,360) (40,559,126) (31,414,210)
------------ ------------ ------------ ------------
20,572,601 40,995,950 59,176,506 48,229,283
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 3,422,603 6,200,445 8,855,927 11,173,893
Reinvestment of dividends -- -- -- --
Cost of shares redeemed (2,944,226) (1,739,011) (8,824,631) (5,939,582)
------------ ------------ ------------ ------------
478,377 4,461,434 31,296 5,234,311
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions 21,050,978 45,457,384 59,207,802 53,463,594
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 42,171,174 60,207,400 143,744,525 96,932,071
Net Assets
Beginning of year 150,700,605 90,493,205 323,551,668 226,619,597
------------ ------------ ------------ ------------
End of year + $192,871,779 $150,700,605 $467,296,193 $323,551,668
============ ============ ============ ============
+Includes undistributed net investment income of $ -- $ -- $ -- $ --
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 4,995,352 6,871,429 3,889,924 3,631,663
Issued for dividends reinvested -- -- -- --
Redeemed (2,484,476) (1,531,123) (1,578,469) (1,427,534)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding 2,510,876 5,340,306 2,311,455 2,204,129
============ ============ ============ ============
Class B:
Sold 428,824 827,213 373,923 548,606
Issued for dividends reinvested -- -- -- --
Redeemed (366,968) (231,955) (370,530) (289,487)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding 61,856 595,258 3,393 259,119
============ ============ ============ ============
Statements of Changes in Net Assets (Continued)
FIRST INVESTORS
- ----------------------------------------------------------------------------------------------------------------------------------
SPECIAL SITUATIONS FOCUSED EQUITY
---------------------------- ----------------------------
Year Ended September 30 2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $ (1,629,311) $ (2,473,241) $ 174,184 $ (268,089)
Net realized gain on investments 54,920,845 26,478,497 2,888,567 1,822,147
Net unrealized appreciation (depreciation) of investments (9,477,244) (9,729,555) 3,284,026 3,279,568
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 43,814,290 14,275,701 6,346,777 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 28,756,884 32,272,999 4,675,073 7,719,981
Reinvestment of dividends -- -- 110,993 --
Cost of shares redeemed (34,605,124) (24,508,853) (11,403,250) (10,216,270)
------------ ------------ ------------ ------------
(5,848,240) 7,764,146 (6,617,184) (2,496,289)
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 1,950,974 4,172,232 638,285 1,199,744
Reinvestment of dividends -- -- 5,739 --
Cost of shares redeemed (5,674,721) (5,431,921) (2,929,303) (2,128,058)
------------ ------------ ------------ ------------
(3,723,747) (1,259,689) (2,285,279) (928,314)
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions (9,571,987) 6,504,457 (8,902,463) (3,424,603)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 34,242,303 20,780,158 (2,673,024) 1,409,023
Net Assets
Beginning of year 210,140,742 189,360,584 60,083,871 58,674,848
------------ ------------ ------------ ------------
End of year + $244,383,045 $210,140,742 $ 57,410,847 $ 60,083,871
============ ============ ============ ============
+Includes undistributed net investment income of $ -- $ -- $ 56,846 $ --
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 1,508,510 1,863,325 559,778 977,797
Issued for dividends reinvested -- -- 13,198 --
Redeemed (1,823,381) (1,421,872) (1,366,256) (1,296,757)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares outstanding (314,871) 441,453 (793,280) (318,960)
============ ============ ============ ============
Class B:
Sold 111,825 259,292 79,352 157,973
Issued for dividends reinvested -- -- 709 --
Redeemed (324,252) (338,579) (364,892) (280,246)
------------ ------------ ------------ ------------
Net increase (decrease) in Class B shares outstanding (212,427) (79,287) (284,831) (122,273)
============ ============ ============ ============
See notes to financial statements
Statements of Changes in Net Assets
FIRST INVESTORS
- -------------------------------------------------------------------------------------------------
GLOBAL
---------------------------
Year Ended September 30 2005 2004
- -------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $ 29,227 $ (400,083)
Net realized gain on investments and foreign
currency transactions 26,274,478 30,025,702
Net unrealized appreciation of investments and
foreign currency transactions 15,303,113 690,941
------------ ------------
Net increase in net assets resulting from operations 41,606,818 30,316,560
------------ ------------
Share Transactions*
Class A:
Proceeds from shares sold 21,167,913 16,930,869
Cost of shares redeemed (30,999,052) (28,122,035)
------------ ------------
(9,831,139) (11,191,166)
------------ ------------
Class B:
Proceeds from shares sold 1,619,784 1,931,105
Cost of shares redeemed (4,823,294) (3,892,357)
------------ ------------
(3,203,510) (1,961,252)
------------ ------------
Net decrease from share transactions (13,034,649) (13,152,418)
------------ ------------
Net increase in net assets 28,572,169 17,164,142
Net Assets
Beginning of year 224,520,784 207,356,642
------------ ------------
End of year $253,092,953 $224,520,784
============ ============
*Shares Issued and Redeemed
Class A:
Sold 3,230,403 2,881,046
Redeemed (4,739,544) (4,801,535)
------------ ------------
Net decrease in Class A shares outstanding (1,509,141) (1,920,489)
============ ============
Class B:
Sold 266,888 353,684
Redeemed (800,150) (706,156)
------------ ------------
Net decrease in Class B shares outstanding (533,262) (352,472)
============ ============
See notes to financial statements
Notes to Financial Statements
September 30, 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)
September 30, 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
September 30, 2005, Global Fund held one security that was fair valued by
its Valuation Committee with a value of $5,000,194 representing 2.0% 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, 2005, capital loss carryovers were as follows:
Year Capital Loss Carryovers Expire
-------------------------------------------------------------------
Fund Total 2009 2010 2011 2012
- ---- ----- ---- ---- ---- ----
Total Return $ 8,563,719 $ -- $ -- $ 8,563,719 $ --
Value 48,807,852 -- 12,401,373 36,406,479 --
Blue Chip 103,865,283 -- 34,677,744 69,187,539 --
Growth & Income 26,077,239 -- -- 26,077,239 --
All-Cap Growth 4,730,580 -- -- 4,730,580 --
Special Situations 6,051,363 -- -- 6,051,363 --
Focused Equity 23,740,685 10,726,015 1,712,582 9,856,986 1,445,102
Global 4,588,793 -- -- 4,588,793 --
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 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 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)
September 30, 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 year ended September 30, 2005, the Bank of New York, custodian for
the Series Fund and Series Fund II, has provided total credits in the
amount of $91,089 against custodian charges based on the uninvested cash
balances of these Funds. The Funds also reduced expenses through brokerage
service arrangements. For the year ended September 30, 2005, the Funds
expenses were reduced by $16,468 under these arrangements.
2. Security Transactions--For the year ended September 30, 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 $167,876,444 $143,094,964 $15,633,525 $2,986,375
Value 90,060,793 39,460,236 -- --
Blue Chip 261,285,402 306,061,154 -- --
Growth & Income 286,685,565 265,780,262 -- --
All-Cap Growth 168,079,583 150,908,393 -- --
Mid-Cap Opportunity 232,430,628 168,942,435 -- --
Special Situations 249,909,035 264,612,307 -- --
Focused Equity 35,035,283 43,863,159 -- --
Global 244,047,001 257,214,122 -- --
At September 30, 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 $288,844,846 $ 43,831,467 $11,192,115 $ 32,639,352
Value 239,282,203 57,076,882 5,122,505 51,954,377
Blue Chip 373,105,645 110,738,337 11,785,812 98,952,525
Growth & Income 563,760,212 150,333,438 35,039,172 115,294,266
All-Cap Growth 158,419,662 33,869,597 1,456,609 32,412,988
Mid-Cap Opportunity 353,112,025 120,784,229 7,273,416 113,510,813
Special Situations 220,801,524 31,394,312 6,487,032 24,907,280
Focused Equity 52,169,586 8,522,013 2,777,073 5,744,940
Global 211,036,198 44,478,174 2,937,046 41,541,128
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 year ended September 30, 2005, total
directors/trustees fees accrued by the Funds amounted to $95,059.
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 waived 25% of the 1% annual fee on the first $200 million of each
Fund's average daily net assets for the year ended September 30, 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)
September 30, 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 year ended September 30, 2005, total advisory fees accrued to FIMCO
by the Funds were $23,263,935 of which $2,000,000 was waived.
For the year ended September 30, 2005, FIC, as underwriter, received
$18,780,174 in commissions from the sale of shares of the Funds, after
allowing $26,517 to other dealers. Shareholder servicing costs included
$6,642,923 in transfer agent fees accrued to ADM and $1,889,737 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 year ended September 30, 2005, total
distribution plan fees accrued to FIC by the Funds amounted to $10,597,018.
Wellington Management Company, LLP ("Wellington") serves as investment
subadviser to All-Cap Growth Fund, Focused Equity Fund and Global Fund.
Effective March 8, 2005, Paradigm Capital Management, Inc. serves as
investment subadviser to Special Situations Fund. The subadvisers are paid
by FIMCO and not by the Funds.
4. Forward Currency Contracts--A forward currency contract is an obligation
to purchase or sell a specific currency for an agreed-upon price at a
future date. When a Fund purchases or sells foreign securities it
customarily enters into a forward currency contract to minimize foreign
exchange risk between the trade date and the settlement date of such
transactions. The Fund could be exposed to risk if counter parties to the
contracts are unable to meet the terms of their contracts or if the value
of the foreign currency changes unfavorably. Forward currency contracts are
"marked-to-market" daily at the applicable translation rate and the
resulting unrealized gains or losses are reflected in the Fund's assets.
Global Fund had the following forward currency contracts outstanding at
September 30, 2005:
Contracts to Buy Unrealized
Foreign Currency In Exchange for Settlement Date Gain
- ---------------------------- --------------- --------------- ----------
436,211 Canadian Dollars US$ 371,497 10/3/05 US$ 4,353
141,956 Euro 170,858 10/3/05 291
125,201 Euro 150,729 10/4/05 219
--------------- ----------
$ 693,084 $ 4,863
=============== ----------
Contracts to Sell Unrealized
Foreign Currency In Exchange for Settlement Date Loss
- ---------------------------- --------------- --------------- ----------
135,410 British Pound US$ 239,106 10/3/05 US$ (447)
294,481 British Pound 518,731 10/4/05 (2,234)
--------------- ----------
$ 757,837 $(2,681)
=============== ----------
Net Unrealized Gain on Forward Currency Contracts $ 2,182
==========
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.
Notes to Financial Statements (continued)
September 30, 2005
6. Tax Components of Capital and Distributions to Shareholders--The tax
character of distributions declared for the years ended September 30, 2005
and September 30, 2004 consisted entirely of ordinary income as follows:
Distributions Declared
from Ordinary Income
---------------------------------
Fund 2005 2004
- ---- -------------- --------------
Total Return $5,117,165 $3,663,467
Value 2,756,032 1,979,769
Blue Chip 2,231,493 --
Growth & Income 4,314,883 1,198,784
All-Cap Growth -- --
Mid-Cap Opportunity -- --
Special Situations -- --
Focused Equity 117,338 --
Global -- --
As of September 30, 2005, the components of distributable earnings on a tax
basis were as follows:
Total
Undistributed Capital Distributable
Ordinary Gain (Loss) Unrealized Income
Fund Income Carryovers Appreciation (Deficit)
- ---- ------------ ------------ ------------ ------------
Total Return $577,966 $ (8,563,719) $ 32,639,352 $ 24,653,599
Value 593,069 (48,807,852) 51,954,377 3,739,594
Blue Chip 439 (103,865,283) 98,952,525 (4,912,319)
Growth & Income 808,110 (26,077,239) 115,294,267 90,025,138
All-Cap Growth -- (4,730,580) 32,412,988 27,682,408
Mid-Cap Opportunity -- 13,130,264 113,510,813 126,641,077
Special Situations -- (6,051,363) 24,907,282 18,855,919
Focused Equity 56,846 (23,740,685) 5,744,940 (17,938,899)
Global 516,698 (4,588,793) 41,540,712 37,468,617
7. Fund Reorganizations--On August 18, 2005, the Board of Directors or
Trustees of each First Investors Fund covered by this report approved,
subject to shareholder approval, an Agreement and Plan of Conversion and
Termination pursuant to which each Fund would be reorganized into a
corresponding series of the First Investors Equity Funds, a
newly-established Delaware statutory trust (the "Reorganizations"). The
Reorganizations will offer a number of benefits to the Funds, including,
among other things, allowing the Funds to operate under uniform, modern and
flexible governing documents that will increase operating efficiency by
streamlining the
governance process and updating, standardizing and streamlining certain of
the Funds' outdated investment restrictions. If approved by shareholders,
it is expected that the Reorganizations will take effect after the close of
business on or about January 27, 2006, although the date may be adjusted in
accordance with the Agreement and Plan of Conversion and Termination.
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 Year Income Investments Operations Income Gain Distributions
- -----------------------------------------------------------------------------------------------------
TOTAL RETURN FUND
- -----------------
Class A
- -------
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 12.98 .23 .97 1.20 .25 -- .25
Class B
- -------
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 12.80 .13 .95 1.08 .15 -- .15
- -----------------------------------------------------------------------------------------------------
VALUE FUND+++
- -----------------
Class A
- -------
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 5.95 .08 .65 .73 .07 -- .07
Class B
- -------
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 5.87 .04 .63 .67 .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 -------------------- ----------------------
Value, Net Assets Net Net Portfolio
End of Total End of Year Investment Investment Turnover
Year Return* (in millions) Expenses Income Expenses Income Rate
- -----------------------------------------------------------------------------------------------------------
TOTAL RETURN FUND
- -----------------
Class A
- -------
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 13.93 9.25 281 1.40 1.69 1.57 1.52 52
Class B
- -------
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 13.73 8.49 38 2.10 .99 2.27 .82 52
- -----------------------------------------------------------------------------------------------------------
VALUE FUND+++
- -----------------
Class A
- -------
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 6.61 12.31 267 1.43 1.31 N/A N/A 17
Class B
- -------
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 6.51 11.43 27 2.13 .61 N/A N/A 17
- -----------------------------------------------------------------------------------------------------------
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 Year (Loss) Investments Operations Income Gain Distributions
- -----------------------------------------------------------------------------------------------------
BLUE CHIP FUND
- --------------------
Class A
- -------
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 18.69 .10 1.91 2.01 .10 -- .10
Class B
- -------
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 17.61 .09 1.67 1.76 .07 -- .07
- -----------------------------------------------------------------------------------------------------
GROWTH & INCOME FUND
- --------------------
Class A
- -------
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 12.14 .09 1.54 1.63 .10 -- .10
Class B
- -------
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 11.62 (.04) 1.51 1.47 .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 Year Income Income Turnover
Year Return* (in millions) Expenses (Loss) Expenses (Loss) Rate
- -----------------------------------------------------------------------------------------------------------
BLUE CHIP FUND
- --------------------
Class A
- -------
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 20.60 10.76 421 1.45 .54 1.56 .43 55
Class B
- -------
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 19.30 9.98 52 2.15 (.16) 2.26 (.27) 55
- -----------------------------------------------------------------------------------------------------------
GROWTH & INCOME FUND
- --------------------
Class A
- -------
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 13.67 13.43 597 1.38 .72 N/A N/A 42
Class B
- -------
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 13.06 12.65 82 2.08 .02 N/A N/A 42
- -----------------------------------------------------------------------------------------------------------
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 Year (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 7.80 (.05) 1.07 1.02 -- -- --
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 7.59 (.11) 1.04 .93 -- -- --
- -----------------------------------------------------------------------------------------------------
MID-CAP OPPORTUNITY FUND
- ------------------------
Class A
- -------
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 22.71 (.09) 5.62 5.53 -- -- --
Class B
- -------
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 21.10 (.26) 5.22 4.96 -- -- --
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
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 Year Income Income Turnover
Year 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 8.82 13.08 169 1.58 (.66) N/A N/A 91
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 8.52 12.25 23 2.28 (1.36) N/A N/A 91
- -----------------------------------------------------------------------------------------------------------
MID-CAP OPPORTUNITY FUND
- ------------------------
Class A
- -------
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 28.24 24.35 410 1.48 (.39) 1.61 (.52) 43
Class B
- -------
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 26.06 23.51 57 2.18 (1.09) 2.31 (1.22) 43
- -----------------------------------------------------------------------------------------------------------
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 Year (Loss) Investments Operations Income Gain Distributions
- -----------------------------------------------------------------------------------------------------
SPECIAL SITUATIONS FUND
- --------------------------
Class A
- -------
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 16.84 (.12) 3.72 3.60 -- -- --
Class B
- -------
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 15.54 (.26) 3.44 3.18 -- -- --
- -----------------------------------------------------------------------------------------------------
FOCUSED EQUITY FUND
- -------------------
Class A
- -------
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 7.83 .03 .86 .89 .02 -- .02
Class B
- -------
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 7.53 (.02) .82 .80 -- -- --
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
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 Year Income Income Turnover
Year Return* (in millions) Expenses (Loss) Expenses (Loss) Rate
- -----------------------------------------------------------------------------------------------------------
SPECIAL SITUATIONS FUND
- --------------------------
Class A
- -------
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 20.44 21.38 224 1.60 (.64) 1.82 (.86) 112
Class B
- -------
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 18.72 20.46 21 2.30 (1.34) 2.52 (1.56) 112
- -----------------------------------------------------------------------------------------------------------
FOCUSED EQUITY FUND
- -------------------
Class A
- -------
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 8.70 11.35 48 1.79 .41 N/A N/A 60
Class B
- -------
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 8.33 10.68 9 2.49 (.29) N/A N/A 60
- -----------------------------------------------------------------------------------------------------------
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 Year (Loss) Investments Operations Income Gain Distributions
- -----------------------------------------------------------------------------------------------------
GLOBAL FUND
- -----------
Class A
- -------
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 5.93 -- 1.13 1.13 -- -- --
Class B
- -------
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 5.52 (.04) 1.04 1.00 -- -- --
- -----------------------------------------------------------------------------------------------------
* 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 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.
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 Year Income Income Turnover
Year Return* (in millions) Expenses (Loss) Expenses (Loss) Rate
- -----------------------------------------------------------------------------------------------------------
GLOBAL FUND
- -----------
Class A
- -------
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 7.06 19.06 239 1.78 .05 N/A N/A 104
Class B
- -------
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 6.52 18.12 14 2.48 (.65) N/A N/A 104
- -----------------------------------------------------------------------------------------------------------
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
September 30, 2005, the related statements of operations for the year then
ended, the statements of changes in net assets for each of the two years in
the period then ended, and the financial highlights for each of the periods
indicated thereon. These financial statements and financial highlights are
the responsibility of the Funds' management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements and financial highlights are free of
material misstatement. We were not engaged to perform an audit of the
Funds' internal control over financial reporting. Our audits included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
Funds' internal control over financial reporting. Accordingly, we express
no such opinion. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of September 30,
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 September 30, 2005, and the results
of their operations for the year then ended, changes in their net assets
for each of the two years in the period then ended, and their financial
highlights for the periods presented, in conformity with accounting
principles generally accepted in the United States of America.
Tait, Weller & Baker LLP
Philadelphia, Pennsylvania
November 1, 2005
FIRST INVESTORS EQUITY FUNDS
Directors/Trustees and Officers*
Position(s)
Held with Principal Number of Other
Funds and Occupation(s) Portfolios in Trusteeships
Name, Year of Birth Length of During Past Fund Complex Directorships
and Address Service 5 Years Overseen Held
- ----------- ------- ------- -------- ----
DISINTERESTED DIRECTORS/TRUSTEES
Robert M. Grohol 1932 Director/Trustee None/Retired 49 None
c/o First Investors since 6/30/00
Management Company, Inc.
95 Wall Street
New York, NY 10005
Rex R. Reed 1922 Director/Trustee None/Retired 49 None
c/o First Investors since 3/31/84
Management Company, Inc.
95 Wall Street
New York, NY 10005
Herbert Rubinstein 1921 Director/Trustee None/Retired 49 None
c/o First Investors since 9/20/79
Management Company, Inc.
95 Wall Street
New York, NY 10005
James M. Srygley 1932 Director/Trustee Owner 49 None
c/o First Investors since 1/19/95 Hampton
Management Company, Inc. Properties
95 Wall Street
New York, NY 10005
Robert F. Wentworth 1929 Director/Trustee None/Retired 49 None
c/o First Investors since 10/15/92
Management Company, Inc.
95 Wall Street
New York, NY 10005
Position(s)
Held with Principal Number of Other
Funds and Occupation(s) Portfolios in Trusteeships
Name, Year of Birth Length of During Past Fund Complex Directorships
and Address Service 5 Years Overseen Held
- ----------- ------- ------- -------- ----
INTERESTED DIRECTORS/TRUSTEES**
Kathryn S. Head 1955 Director/Trustee Chairman, Officer 49 None
c/o First Investors since 3/17/94 and Director of
Management Company, Inc. First Investors
Raritan Plaza I President Corporation;
Edison, NJ 08837 since 11/15/01 First Investors
Consolidated
Chairman Corporation;
since 1/1/05 First Investors
Management
Company, Inc.;
Administrative Data
Management Corp.;
First Investors
Federal Savings
Bank; School
Financial
Management
Services, Inc.;
and other affiliated
companies***
John T. Sullivan 1932 Director/Trustee Of Counsel 49 None
c/o First Investors since 9/20/79 Hawkins,
Management Company, Inc. Delafield &
95 Wall Street Wood; Director
New York, NY 10005 of First Investors
Corporation,
First Investors
Consolidated
Corporation,
First Investors
Management
Company, Inc.,
Administrative Data
Management Corp.,
and other affiliated
companies***
FIRST INVESTORS EQUITY FUNDS
Directors/Trustees and Officers* (continued)
* Each Director/Trustee serves for an indefinite term with the Funds,
until his/her successor is elected.
** Ms. Head is an interested director/trustee because (a) she
indirectly owns more than 5% of the voting stock of the adviser and
principal underwriter of the Funds, (b) she is an officer, director
and employee of the adviser and principal underwriter of the Funds,
and (c) she is an officer of the Funds. Mr. Sullivan is an interested
director/trustee because he is a director and he indirectly owns
securities issued by the adviser and principal underwriter of the
Funds.
*** Other affiliated companies consist of: First Investors Realty
Company, Inc., First Investors Life Insurance Company, First
Investors Leverage Corporation, Route 33 Realty Corporation, First
Investors Credit Funding Corporation, N.A.K. Realty Corporation, Real
Property Development Corporation, First Investors Credit Corporation
and First Investors Resources, Inc.
Position(s)
Held with Principal Number of Other
Funds and Occupation(s) Portfolios in Trusteeships
Name, Year of Birth Length of During Past Fund Complex Directorships
and Address Service 5 Years Overseen Held
- ----------- ------- ------- -------- ----
OFFICERS WHO ARE NOT DIRECTORS/TRUSTEES
Joseph I. Benedek 1957 Treasurer Treasurer 49 None
c/o First Investors since 1988 and Principal
Management Company, Inc. Accounting Officer
Raritan Plaza I
Edison, NJ 08837
Larry R. Lavoie 1947 Chief Compliance General Counsel 49 None
c/o First Investors Officer of First Investors
Management Company, Inc. since 2004 Corporation
95 Wall Street and its affiliates
New York, NY 10005
Director/Trustee
from 9/17/98
to 8/18/04
George V. Ganter 1952 Vice President, Portfolio Manager 2 None
c/o First Investors Series Fund, of First Investors
Management Company, Inc. since 2000 Management
95 Wall Street Company, Inc.
New York, NY 10005
Clark D. Wagner 1959 Vice President, Director of 27 None
c/o First Investors Series Fund, Fixed Income
Management Company, Inc. since 1991 (previously, Chief
95 Wall Street Investment Officer)
New York, NY 10005 of First Investors
Management
Company, Inc.
Matthew S. Wright 1968 Vice President, Portfolio Manager 4 None
c/o First Investors Series Fund II, of First Investors
Management Company, Inc. since 2005 Management
95 Wall Street Company, Inc.
New York, NY 10005
FIRST INVESTORS EQUITY FUNDS
Shareholder Information
- -----------------------
Investment Adviser Custodian (Global Fund only)
First Investors Management Company, Inc. Brown Brothers Harriman & Co.
95 Wall Street 40 Water Street
New York, NY 10005 Boston, MA 02109
Subadviser (All-Cap Growth Fund, Transfer Agent
Focused Equity Fund and Global Fund only) Administrative Data Management Corp.
Wellington Management Company, LLP Raritan Plaza I - 8th Floor
75 State Street Edison, NJ 08837-3620
Boston, MA 02109
Independent Registered
Subadviser (Special Situations Fund only) Public Accounting Firm
Paradigm Capital Management, Inc. Tait, Weller & Baker LLP
Nine Elk Street 1818 Market Street
Albany, NY 12207 Philadelphia, PA 19103
Underwriter Legal Counsel
First Investors Corporation Kirkpatrick & Lockhart
95 Wall Street Nicholson Graham LLP
New York, NY 10005 1800 Massachusetts Avenue, N.W.
Washington, DC 20036
Custodian
The Bank of New York
One Wall Street
New York, NY 10286
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
on Form N-Q for the first and third quarters of each fiscal year. The
Funds' Form N-Q is available on the SEC's website at http://www.sec.gov;
and may also be reviewed and copied at the SEC's Public Reference Room in
Washington, 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
As of the end of the period, September 30, 2005, the Registrant has
adopted a Code of Ethics that applies to the First Investors Funds'
("Funds") principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the Funds or a third party. A copy of the code of ethics is
attached to this report as Exhibit A.
During the period of the report, there have been no amendments to the
Code of Ethics or waivers, implicit or otherwise, from its provisions.
Item 3. Audit Committee Financial Expert
The independent director currently serving as the audit committee
financial expert is Robert F. Wentworth.
The Registrant's Board has unanimously determined that Mr. Wentworth
satisfied the definition of an audit committee financial expert as
set forth in the instructions to Form N-CSR under the Investment
Company Act of 1940. Specifically, the Board determined that
Mr. Wentworth has all of the following: (i) an understanding of
generally accepted accounting principles and financial
statements; (ii) the ability to assess the general application of such
principles in connection with the accounting for estimates, accruals,
and reserves; (iii) experience preparing, auditing, analyzing or
evaluating financial statements that present the breadth and level of
complexity of accounting issues that are generally comparable to the
breadth and complexity of issues that can reasonably be expected to be
raised by the Funds' financial statements, or experience actively
supervising one or more persons engaged in such activities; (iv) an
understanding of internal controls and procedures for financial reports;
and (v) an understanding of audit committee functions. Furthermore, he
had acquired these attributes through education and many years of
relevant experience in various financial positions with American
Telephone and Telegraph Company, including the positions of
Director - Accounting, Director - Finance, Director - Financial
Reporting and Analysis, Controller, and Director of Business Planning.
Mr. Wentworth also has many years experience serving on the Audit
Committees of the First Investors Funds and other organizations. Finally,
Mr. Wentworth is independent as defined in the instructions to the Form.
Item 4. Principal Accountant Fees and Services
Fiscal Year Ended
September 30,
-----------------
2005 2004
---- ----
(a) Audit Fees
First Investors
Series Fund
Total Return Fund $ 15,500 $ 14,900
Blue Chip Fund 35,400 33,900
Special Situations Fund 26,000 24,900
Series Fund II, Inc.
Value Fund 21,800 20,900
Growth & Income Fund 34,300 32,900
All-Cap Growth Fund 11,300 10,900
Mid-Cap Opportunity Fund 14,500 13,900
Focused Equity Fund 11,300 10,900
Global Fund, Inc. 36,400 34,900
(b) Audit-Related Fees
First Investors
Series Fund
Total Return Fund $ 0 $ 0
Blue Chip Fund 0 0
Special Situations Fund 0 0
Series Fund II, Inc.
Value Fund 0 0
Growth & Income Fund 0 0
All-Cap Growth Fund 0 0
Mid-Cap Opportunity Fund 0 0
Focused Equity Fund 0 0
Global Fund, Inc. 0 0
(c) Tax Fees
First Investors
Series Fund
Total Return Fund $ 3,600 $ 3,500
Blue Chip Fund 3,600 3,500
Special Situations Fund 3,600 3,500
Series Fund II, Inc.
Value Fund 3,600 3,500
Growth & Income Fund 3,600 3,500
All-Cap Growth Fund 3,600 3,500
Mid-Cap Opportunity Fund 3,600 3,500
Focused Equity Fund 3,600 3,500
Global Fund, Inc. 3,600 3,500
Nature of fees: tax returns preparation and tax compliance
(d) All Other Fees
First Investors
Series Fund
Total Return Fund $ 0 $ 0
Blue Chip Fund 0 0
Special Situations Fund 0 0
Series Fund II, Inc.
Value Fund 0 0
Growth & Income Fund 0 0
All-Cap Growth Fund 0 0
Mid-Cap Opportunity Fund 0 0
Focused Equity Fund 0 0
Global Fund, Inc. 0 0
(e)(1) Audit committee's pre-approval policies
The Audit Committee has adopted a charter under which it has the duties,
among other things:
(a) to pre-approve, and to recommend to the full Board, the
selection, retention or termination of the independent auditors to provide
audit, review or attest services to the Funds and, in connection therewith,
evaluate the independence of the auditors and to obtain the auditors'
specific representations as to their independence;
(b) to pre-approve all non-audit services to be provided to
the Funds by the independent auditor;
(c) to pre-approve all non-audit services to be provided by
the Funds' independent auditor to the Funds' investment adviser or to any
entity that controls, is controlled by or is under common control with the
Funds investment adviser ("adviser affiliate") and that provides ongoing
services to the Funds, if the engagement relates directly to the operations
and financial reporting of the Funds;
(d) to establish, if deemed necessary or appropriate as an
alternative to Audit Committee pre-approval of services to be provided by
the independent auditor as required by paragraphs (b) and (c) above,
policies and procedures to permit such services to be pre-approved by other
means, such as by action of a designated member and members of the Audit
Committee, subject to subsequent Committee review and oversight;
(e) to consider whether the non-audit services provided by the
Funds' independent auditors to the Funds' investment adviser or any adviser
affiliate that provides ongoing services to the Funds, which services were
not pre-approved by the Audit Committee, are compatible with maintaining the
auditors' independence;
(f) to meet with the Funds' independent auditors, including
meetings without management representatives, as necessary (i) to review the
arrangements for, and scope of, the annual audit, any special audits and any
other services to be provided to the Funds by the auditors; (ii) to discuss
any matters of concern relating to the Funds' financial statements,
including any adjustments to such statements recommended by the auditors, or
other results of said audit(s); and (iii) to review the form of opinion the
auditors propose to render to the Board and shareholders;
(g) to receive and consider (i) information and comments from
the auditors with respect to the Funds' accounting and financial reporting
policies, procedures and internal control over financial reporting
(including the Funds' critical accounting policies and practices) and to
consider management's responses to any such comments; (ii) reports from the
auditors regarding any material written communications between the auditors
and management; and (iii) reports from the auditors regarding all non-audit
services provided to any entity in the Funds' investment company complex
that were not pre-approved by the Audit Committee or pursuant to
pre-approved policies and procedures established by the Audit Committee and
associated fees;
(h) to consider the effect upon the Funds of any changes in
accounting principles or practices proposed by management or the auditors;
(i) to review and approve the fees proposed to be charged to the
Funds by the auditors for each audit and non-audit service;
(j) to receive reports from Fund management in connection with
the required certifications on Form N-CSR under the 1940 Act of any
significant deficiencies in the design or operation of the Funds' internal
control over financial reporting or material weakness therein and any
reported evidence of fraud, whether or not material, involving management or
other employees of the Funds who have a significant role in the Funds'
internal control over financial reporting;
(k) to investigate improprieties or suspected improprieties in
the Funds' accounting or financial reporting brought to the attention of the
Audit Committee;
(l) to receive and consider reports from attorneys, in
accordance with the "Up-the-Ladder" Reporting Policies for attorneys who
appear or practice before the Securities and Exchange Commission in the
representation of the Funds and in accordance with applicable federal law,
and auditors relating to possible material violations of federal or state
law or fiduciary duty;
(m) to report its activities to the full Board on a regular
basis and to make such recommendations with respect to the above and other
matters as the Audit Committee may deem necessary or appropriate;
(n) to meet with the Treasurer of the Funds and, as necessary,
with internal auditors, if any, for the management company; and
(o) to perform such other functions and to have such powers as
may be necessary or appropriate in the efficient and lawful discharge of the
powers provided in this Charter.
(e)(2) None, or 0%, of the services relating to the Audit-Related Fees,
Tax Fees and All Other Fees paid by the Registrant and Related Entities
disclosed above were approved by the audit committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X (which permits audit committee
approval after the start of the engagement with respect to services other
than audit review or attest services, if certain conditions are satisfied).
(f) Not Applicable
(g) Aggregate non-audit fees billed by the Registrant's accountant
for services rendered to the Registrant and the Registrant's investment
adviser or any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the
Registrant for the two fiscal years ended September 30, 2005 and 2004
were $68,000 and $66,500 respectively.
(h) Not Applicable
Item 5. Audit Committee of Listed Registrants
Audit Committee Members:
Robert M. Grohol
Rex R. Reed
Herbert Rubinstein
James M. Srygley
Robert F. Wentworth
Item 6. Schedule of Investments
Schedule is included as part of the report to
shareholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies & Procedures for
Closed-End Management Investment Companies
Not applicable
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Companies and Affiliated Purchasers
Not applicable
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedure by which shareholders may
recommend nominees to the Registrant's Board of Directors/Trustees.
Item 11. Controls and Procedures
(a) The Registrant's Principal Executive Officer and Principal
Financial Officer have concluded that the Registrant's disclosure controls
and procedures (as defined in Rule 30a-3(c) under the Investment Company
Act of 1940, as amended) are effective, based on their evaluation of these
disclosure controls and procedures as of a date within 90 days of the
filing date of this report.
(b) There were no changes in the Registrant's internal control over
financial reporting that occurred during the second fiscal quarter of the
period covered by this report that has materially affected, or is reasonably
likely to materially affect, the Registrant's internal control over
financial reporting.
Item 12. Exhibits
(a) 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 has 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: December 6, 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: December 6, 2005