UNITED STATES 	SECURITIES AND EXCHANGE COMMISSION 	 WASHINGTON, D.C. 20549 		 -------- 		 FORM N-CSR 		 -------- CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES INVESTMENT COMPANY ACT FILE NUMBERS 811-6618 FIRST INVESTORS EQUITY FUNDS (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, 2007 DATE OF REPORTING PERIOD: MARCH 31, 2007 Item 1. Reports to Stockholders 		The semi-annual report to stockholders follows [First Investors Logo] EQUITY FUNDS TOTAL RETURN VALUE BLUE CHIP GROWTH & INCOME SELECT GROWTH GLOBAL MID-CAP OPPORTUNITY SPECIAL SITUATIONS FOCUSED EQUITY INTERNATIONAL SEMI-ANNUAL REPORT March 31, 2007 Equity Market Overview FIRST INVESTORS EQUITY FUNDS Dear Investor: With the domestic economy continuing to expand, the U.S. stock market performed extremely well during the reporting period. The stocks of mid-size and small companies were the strongest performers, as the S&P 400 Mid-Cap Index gained 13.2% and the Russell 2000 Index (a leading benchmark for small-cap stocks) was up 11.0%. Large-cap stocks also posted very strong results, with the S&P 500 Index advancing 7.4% during the reporting period. The U.S. economy grew at a moderate 2.5% pace in the fourth quarter of 2006, before slowing to 1.3% in the first quarter of this year. The economy battled two headwinds during the review period. First, the housing market declined with starts down 23% year-over-year. Second, capital expenditures unexpectedly slowed in part due to the housing market but also as corporations -- despite healthy profits -- conservatively planned for large-scale purchases. As has been the case for the past several years, the consumer sector continued to support the economy. With the unemployment rate in March matching the cycle low of 4.4% and personal income growing over 5% annually, consumers felt comfortable spending despite the weak housing market and higher gas prices. Inflation remained somewhat elevated during the review period. The consumer price index rose 2.8%. The more closely watched "core" consumer price index - -- which excludes food and energy-- rose a more moderate 2.5%, up from 2.1% a year ago. The Federal Reserve (the "Fed") remained concerned about inflation, which was above its 1% to 2% comfort zone. Despite this concern, the Fed left the benchmark federal funds rate unchanged over the past six months. The Fed stated that it believed that moderating economic growth would lead to lower inflation later this year and therefore it would probably not need to raise interest rates further. The stock market rallied strongly in the fourth quarter of 2006, and that momentum continued through the middle of February 2007. The powerful rally was triggered in August by the Fed's decision to leave interest rates unchanged. In addition to the Fed's "pause," a confluence of encouraging factors helped buoy the stock market's spirits. Better-than-expected corporate earnings strengthened the market's upward trend. Inflation indicators reinforced the belief that the Fed would remain on hold for the balance of 2006. Corporate balance sheets and earnings continued to have positive trends, and mergers and acquisition activity continued at a record pace. In mid-February, a series of events sent the market into a brief "air pocket." Concerns began to mount about the sustainability of economic growth, the persistent rate of inflation and emerging difficulties in the subprime mortgage lending market. Equity Market Overview (continued) FIRST INVESTORS EQUITY FUNDS A plunge in Chinese stocks rippled across global markets in late February, triggering a massive wave of selling in the U.S. that drove the S&P 500 Index down more than three percent on February 27th, its biggest drop in 3 1/2 years. The market recovered some ground in late March and ended the first quarter in essentially the same place at which the year began. Thank you for placing your trust in First Investors. As always, we appreciate the opportunity to serve your investment needs. Sincerely, /S/ EDWIN D. MISKA Edwin D. Miska Director of Equities First Investors Management Company, Inc. May 15, 2007 This Market Overview is not part of the Funds' financial report and is submitted for the general information of the shareholders of the Funds. It is not authorized for distribution to prospective investors in the Funds, unless preceded or accompanied by an effective prospectus. The Market Overview reflects conditions through the end of the period as stated on the cover. Market conditions are subject to change. This Market Overview may not be relied upon as investment advice or an indication of current or future trading intent on behalf of any Fund. There are a variety of risks associated with investing in mutual funds. For stock funds, the risks include market risk (the risk that the entire stock market will decline because of an event such as a deterioration in the economy or a rise in interest rates), as well as special risks associated with investing in certain types of stock funds, such as small-cap, global and international funds. For bond funds, the risks include interest rate risk and credit risk. Interest rate risk is the risk that bonds will decrease in value as interest rates rise. As a general matter, longer-term bonds fluctuate more than shorter-term bonds in reaction to changes in interest rates. Credit risk is the risk that bonds will decline in value as the result of a decline in the credit rating of the bonds or the economy as a whole, or that the issuer will be unable to pay interest and/or principal when due. You should consult your prospectus for a precise explanation of the risks associated with your fund. On May 7, 2007, Smith Asset Management Group, L.P., took over as the subadviser of the First Investors All-Cap Growth Fund and the Fund's name was changed to the First Investors Select Growth Fund. These changes were previously approved by the Board of Trustees and shareholders of the Fund. Although these changes occurred subsequent to the end of the reporting period, for purposes of simplicity and clarity we have decided to refer to the Fund as the Select Growth Fund to the extent possible throughout this report. 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, October 1, 2006, and held for the entire six-month period ended March 31, 2007. 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. Fund Expenses 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 4 for a detailed explanation of the information presented in these examples. Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/06) (3/31/07) (10/1/06-3/31/07)* - ------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,076.21 $6.99 Hypothetical (5% annual return before expenses) $1,000.00 $1,018.20 $6.79 - ------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,072.16 $10.59 Hypothetical (5% annual return before expenses) $1,000.00 $1,014.71 $10.30 - ------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.35% for Class A shares and 2.05% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Portfolio Composition TOP TEN SECTORS (BAR CHART DATA:) Financials 12.2% Industrials 11.7% Mortgage-Backed Certificates 10.9% Consumer Discretionary 10.7% Information Technology 9.2% US Agency Obligations 8.4% Consumer Staples 8.4% Health Care 6.4% Energy 5.3% Materials 4.3% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2007, and are based on the total market value of investments. Portfolio of Investments TOTAL RETURN FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--59.8% Consumer Discretionary--10.4% 60,300 bebe stores, inc. $1,048,014 $28 28,200 * Blockbuster, Inc. - Class "A" 181,608 5 32,500 * Carter's, Inc. 823,550 22 53,350 CBS Corporation - Class "B" 1,631,976 44 40,300 Clear Channel Communications, Inc. 1,412,112 38 53,800 * Cost Plus, Inc. 538,000 15 75,600 Dollar General Corporation 1,598,940 43 67,200 * Eddie Bauer Holdings, Inc. 764,064 21 73,000 Foot Locker, Inc. 1,719,150 46 13,700 Genuine Parts Company 671,300 18 105,100 H&R Block, Inc. 2,211,304 59 46,800 Home Depot, Inc. 1,719,432 46 14,800 J.C. Penney Company, Inc. 1,215,968 33 13,200 Jones Apparel Group, Inc. 405,636 11 11,200 Journal Register Company 66,752 2 30,800 Kenneth Cole Productions, Inc. - Class "A" 790,636 21 41,400 Leggett & Platt, Inc. 938,538 25 58,000 * Lincoln Educational Services Corporation 824,180 22 57,500 McDonald's Corporation 2,590,375 70 74,400 * Morgans Hotel Group Company 1,563,144 42 60,900 Movado Group, Inc. 1,793,505 48 60,200 Newell Rubbermaid, Inc. 1,871,618 50 58,300 Orient-Express Hotels, Ltd. 3,487,506 94 14,700 Polo Ralph Lauren Corporation - Class "A" 1,295,805 35 73,200 * Quiksilver, Inc. 849,120 23 12,500 RadioShack Corporation 337,875 9 21,300 Sherwin-Williams Company 1,406,652 38 26,600 * Steiner Leisure, Ltd. 1,196,468 32 30,250 * Viacom, Inc. - Class "B" 1,243,578 33 135,200 Westwood One, Inc. 928,824 25 51,560 * Wyndham Worldwide Corporation 1,760,774 47 - ------------------------------------------------------------------------------------------------------------------------- 38,886,404 1,045 - ------------------------------------------------------------------------------------------------------------------------- Consumer Staples--4.2% 41,400 Altria Group, Inc. 3,635,334 98 46,700 Avon Products, Inc. 1,740,042 47 17,700 * Chattem, Inc. 1,043,238 28 14,100 Coca-Cola Company 676,800 18 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Consumer Staples (continued) 49,900 CVS Corporation $1,703,586 $46 112,700 Nu Skin Enterprises, Inc. - Class "A" 1,861,804 50 13,400 PepsiCo, Inc. 851,704 23 14,900 * Prestige Brands Holdings, Inc. 176,565 5 20,800 Procter & Gamble Company 1,313,728 35 26,425 Tootsie Roll Industries, Inc. 791,947 21 24,200 Wal-Mart Stores, Inc. 1,136,190 30 16,100 WD-40 Company 510,531 14 - ------------------------------------------------------------------------------------------------------------------------- 15,441,469 415 - ------------------------------------------------------------------------------------------------------------------------- Energy--4.6% 16,000 Anadarko Petroleum Corporation 687,680 19 1,000 * Cal Dive International, Inc. 12,210 -- 13,350 Chesapeake Energy Corporation 412,248 11 24,200 ConocoPhillips 1,654,070 44 30,800 ExxonMobil Corporation 2,323,860 62 5,600 * Houston Exploration Company 302,120 8 1,897 Hugoton Royalty Trust 47,766 1 4,393 Marathon Oil Corporation 434,160 12 21,500 Noble Corporation 1,691,620 46 25,000 * North American Energy Partners, Inc. 527,250 14 36,400 Sasol, Ltd. (ADR) 1,203,020 32 40,100 Suncor Energy, Inc. 3,061,635 82 19,300 * Swift Energy Company 806,161 22 26,700 * Transocean, Inc. 2,181,390 59 32,266 XTO Energy, Inc. 1,768,499 48 - ------------------------------------------------------------------------------------------------------------------------- 17,113,689 460 - ------------------------------------------------------------------------------------------------------------------------- Financials--9.0% 13,900 American Express Company 783,960 21 26,700 American International Group, Inc. 1,794,774 48 2,780 Ameriprise Financial, Inc. 158,849 4 34,700 Astoria Financial Corporation 922,673 25 40,100 Bank of America Corporation 2,045,902 55 40,000 Brookline Bancorp, Inc. 506,800 14 15,592 Capital One Financial Corporation 1,176,572 32 35,600 Citigroup, Inc. 1,827,704 49 53,100 Colonial BancGroup, Inc. 1,314,225 35 36,550 * First Mercury Financial Corporation 751,103 20 11,000 * Flagstone Reinsurance Holdings, Ltd. 148,280 4 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) TOTAL RETURN FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Financials (continued) 11,924 Hartford Financial Services Group, Inc. $1,139,696 $31 47,300 JPMorgan Chase & Company 2,288,374 61 17,400 Lehman Brothers Holdings, Inc. 1,219,218 33 20,000 Merrill Lynch & Company, Inc. 1,633,400 44 23,900 Morgan Stanley 1,882,364 51 53,500 New York Community Bancorp, Inc. 941,065 25 71,500 NewAlliance Bancshares, Inc. 1,159,015 31 13,300 Plum Creek Timber Company, Inc. (REIT) 524,286 14 34,800 South Financial Group, Inc. 860,256 23 59,475 Sovereign Bancorp, Inc. 1,513,044 41 17,400 SunTrust Banks, Inc. 1,444,896 39 54,100 U.S. Bancorp 1,891,877 51 38,445 U.S.B. Holding Company, Inc. 872,317 23 26,700 Wachovia Corporation 1,469,835 39 35,600 Washington Mutual, Inc. 1,437,528 39 8,200 Webster Financial Corporation 393,682 11 37,500 Wells Fargo & Company 1,291,125 35 - ------------------------------------------------------------------------------------------------------------------------- 33,392,820 898 - ------------------------------------------------------------------------------------------------------------------------- Health Care--6.5% 43,800 Abbott Laboratories 2,444,040 66 21,400 Aetna, Inc. 937,106 25 12,500 * Amgen, Inc. 698,500 19 6,000 Baxter International, Inc. 316,020 8 28,200 Biomet, Inc. 1,198,218 32 26,900 * Boston Scientific Corporation 391,126 11 5,500 * Genentech, Inc. 451,660 12 43,100 Johnson & Johnson 2,597,206 70 13,400 * Laboratory Corporation of America Holdings 973,242 26 20,000 Medtronic, Inc. 981,200 26 21,200 Merck & Company, Inc. 936,404 25 13,400 * Momenta Pharmaceutical, Inc. 173,664 5 114,580 Pfizer, Inc. 2,894,291 78 36,000 Sanofi-Aventis (ADR) 1,566,360 42 33,400 * St. Jude Medical, Inc. 1,256,174 34 26,800 * Thermo Fisher Scientific, Inc. 1,252,900 34 22,300 * Triad Hospitals, Inc. 1,165,175 31 23,800 * TriZetto Group, Inc. 476,238 13 14,850 UnitedHealth Group, Inc. 786,605 21 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Health Care (continued) 6,400 * Waters Corporation $371,200 $10 46,600 Wyeth 2,331,398 63 - ------------------------------------------------------------------------------------------------------------------------- 24,198,727 651 - ------------------------------------------------------------------------------------------------------------------------- Industrials--10.9% 43,900 3M Company 3,355,277 90 4,600 Aegean Marine Petroleum Network, Inc. 77,464 2 24,000 Alexander & Baldwin, Inc. 1,210,560 33 67,000 * Altra Holdings, Inc. 918,570 25 24,400 * Armstrong World Industries, Inc. 1,240,740 33 13,930 * Avis Budget Group, Inc. 380,568 10 58,000 Barnes Group, Inc. 1,334,580 36 25,750 * BE Aerospace, Inc. 816,275 22 25,100 Burlington Northern Santa Fe Corporation 2,018,793 54 27,100 Caterpillar, Inc. 1,816,513 49 53,000 * Gardner Denver, Inc. 1,847,050 50 68,100 General Electric Company 2,408,016 65 16,400 * Genlyte Group, Inc. 1,157,020 31 34,200 Harsco Corporation 1,534,212 41 52,600 Honeywell International, Inc. 2,422,756 65 10,900 Hubbell, Inc. 525,816 14 32,900 Illinois Tool Works, Inc. 1,697,640 46 75,600 Knoll, Inc. 1,801,548 48 14,800 Lockheed Martin Corporation 1,435,896 39 13,500 * Mobile Mini, Inc. 361,530 10 42,700 * Navigant Consulting, Inc. 843,752 23 24,200 Northrop Grumman Corporation 1,796,124 48 42,000 * PGT, Inc. 504,000 14 26,800 * Pinnacle Airlines Corporation 463,372 13 24,100 Precision Castparts Corporation 2,507,605 67 13,500 Steelcase, Inc. - Class "A" 268,515 7 44,100 TAL International Group, Inc. 1,058,400 28 52,200 Tyco International, Ltd. 1,646,910 44 46,500 United Technologies Corporation 3,022,500 81 - ------------------------------------------------------------------------------------------------------------------------- 40,472,002 1,088 - ------------------------------------------------------------------------------------------------------------------------- Information Technology--9.3% 48,000 * Arris Group, Inc. 675,840 18 8,100 * CACI International, Inc. - Class "A" 379,566 10 80,100 * Cisco Systems, Inc. 2,044,953 55 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) TOTAL RETURN FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Information Technology (continued) 65,800 * Electronics for Imaging, Inc. $1,543,010 $42 110,900 * EMC Corporation 1,535,965 41 81,100 * Entrust, Inc. 326,833 9 32,176 First Data Corporation 865,534 23 800 * Glu Mobile, Inc. 8,000 -- 38,900 Harris Corporation 1,981,955 53 43,900 Hewlett-Packard Company 1,762,146 47 49,100 Intel Corporation 939,283 25 30,700 International Business Machines Corporation 2,893,782 78 7,600 * International Rectifier Corporation 290,396 8 93,800 Microsoft Corporation 2,614,206 70 73,300 Motorola, Inc. 1,295,211 35 53,700 * NCI, Inc. - Class "A" 792,075 21 53,300 Nokia Corporation - Class "A" (ADR) 1,221,636 33 95,200 * Openwave Systems, Inc. 775,880 21 75,400 * Parametric Technology Corporation 1,439,386 39 29,400 * Paxar Corporation 843,780 23 36,000 QUALCOMM, Inc. 1,535,760 41 106,300 * Silicon Image, Inc. 867,408 24 100,900 * Smart Modular Technologies (WWH), Inc. 1,290,511 35 61,700 * Symantec Corporation 1,067,410 29 105,900 * TIBCO Software, Inc. 902,268 24 34,700 * Varian Semiconductor Equipment Associates, Inc. 1,852,286 50 37,400 * VeriSign, Inc. 939,488 25 32,076 Western Union Company 704,068 19 47,800 Xilinx, Inc. 1,229,894 33 - ------------------------------------------------------------------------------------------------------------------------- 34,618,530 931 - ------------------------------------------------------------------------------------------------------------------------- Materials--3.7% 7,900 Ashland, Inc. 518,240 14 80,300 Celanese Corporation 2,476,452 67 28,400 Dow Chemical Company 1,302,424 35 22,300 Freeport-McMoRan Copper & Gold, Inc. - Class "B" 1,476,037 40 33,200 Lubrizol Corporation 1,710,796 46 12,300 PPG Industries, Inc. 864,813 23 18,900 Praxair, Inc. 1,189,944 32 53,000 RPM International, Inc. 1,224,300 33 13,500 Scotts Miracle-Gro Company - Class "A" 594,405 16 37,400 Temple-Inland, Inc. 2,234,276 60 - ------------------------------------------------------------------------------------------------------------------------- 13,591,687 366 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested Shares or For Each Principal $10,000 of Amount Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Telecommunication Services--.7% 44,100 AT&T, Inc. $1,738,863 $47 20,100 Verizon Communications, Inc. 762,192 20 - ------------------------------------------------------------------------------------------------------------------------- 2,501,055 67 - ------------------------------------------------------------------------------------------------------------------------- Utilities--.5% 30,800 Atmos Energy Corporation 963,424 26 20,100 Consolidated Edison, Inc. 1,026,306 28 - ------------------------------------------------------------------------------------------------------------------------- 1,989,730 54 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $165,262,180) 222,206,113 5,975 - ------------------------------------------------------------------------------------------------------------------------- CORPORATE BONDS--11.5% Aerospace/Defense--.3% $500M Boeing Co., 7.25%, 2025 593,656 16 500M Precision Castparts Corp., 5.6%, 2013 503,342 13 - ------------------------------------------------------------------------------------------------------------------------- 1,096,998 29 - ------------------------------------------------------------------------------------------------------------------------- Automotive--.1% 500M Daimler Chrysler NA Holdings Corp., 5.75%, 2009 506,284 13 - ------------------------------------------------------------------------------------------------------------------------- Chemicals--.2% 900M Praxair, Inc., 5.375%, 2016 903,301 24 - ------------------------------------------------------------------------------------------------------------------------- Energy--.1% 419M Pacific Energy Partners LP, 7.125%, 2014 438,043 12 - ------------------------------------------------------------------------------------------------------------------------- Financials--.5% 927M Ford Motor Credit Co., 9.75%, 2010 + 977,158 26 1,000M International Lease Finance Corp., 5.625%, 2013 1,020,652 28 - ------------------------------------------------------------------------------------------------------------------------- 1,997,810 54 - ------------------------------------------------------------------------------------------------------------------------- Financial Services--2.1% 950M Citigroup, Inc., 6%, 2033 948,069 26 1,000M Endurance Specialty Holdings, Ltd., 7%, 2034 1,013,559 27 310M GATX Financial Corp., 5.5%, 2012 310,922 8 1,000M Goldman Sachs Group, Inc., 6.45%, 2036 1,019,151 28 500M Hibernia Corp., 5.35%, 2014 488,317 13 760M Independence Community Bank Corp., 4.9%, 2010 751,790 20 500M JPMorgan Chase & Co., 5.25%, 2015 495,927 13 765M Marshall & Ilsley Bank, 5.2%, 2017 736,683 20 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) TOTAL RETURN FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Financial Services (continued) $500M MetLife, Inc., 6.4%, 2036 $489,793 $13 1,000M Nationsbank Corp., 7.8%, 2016 1,167,487 32 335M Washington Mutual Bank, 5.95%, 2013 342,317 9 - ------------------------------------------------------------------------------------------------------------------------- 7,764,015 209 - ------------------------------------------------------------------------------------------------------------------------- Food/Beverage/Tobacco--.7% 1,000M Altria Group, Inc., 7%, 2013 1,087,421 29 200M Bottling Group, LLC, 5%, 2013 197,194 5 1,170M Bunge Limited Finance Co., 5.875%, 2013 1,168,197 32 - ------------------------------------------------------------------------------------------------------------------------- 2,452,812 66 - ------------------------------------------------------------------------------------------------------------------------- Food/Drug--.4% 600M Delhaize America, Inc., 8.125%, 2011 659,299 17 700M Kroger Co., 6.75%, 2012 741,602 20 - ------------------------------------------------------------------------------------------------------------------------- 1,400,901 37 - ------------------------------------------------------------------------------------------------------------------------- Gaming/Leisure--.4% 700M International Speedway Corp., 4.2%, 2009 684,412 18 750M MGM Mirage, Inc., 8.5%, 2010 805,312 22 - ------------------------------------------------------------------------------------------------------------------------- 1,489,724 40 - ------------------------------------------------------------------------------------------------------------------------- Health Care--.3% 336M Baxter International, Inc., 5.9%, 2016 347,370 9 800M Wyeth, 6.95%, 2011 851,278 23 - ------------------------------------------------------------------------------------------------------------------------- 1,198,648 32 - ------------------------------------------------------------------------------------------------------------------------- Information Technology--.3% 1,000M International Business Machines Corp., 7%, 2025 1,142,093 31 - ------------------------------------------------------------------------------------------------------------------------- Manufacturing--.8% 1,000M Caterpillar, Inc., 6.05%, 2036 1,024,261 28 1,000M Crane Co., 6.55%, 2036 1,000,564 27 700M Newell Rubbermaid, Inc., 6.75%, 2012 739,435 20 - ------------------------------------------------------------------------------------------------------------------------- 2,764,260 75 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Media-Broadcasting--.4% $750M Comcast Cable Communications, Inc., 7.125%, 2013 $813,803 $22 800M Cox Communications, Inc., 5.5%, 2015 788,022 21 - ------------------------------------------------------------------------------------------------------------------------- 1,601,825 43 - ------------------------------------------------------------------------------------------------------------------------- Media-Diversified--1.1% AOL Time Warner, Inc.: 750M 6.75%, 2011 791,098 21 1,000M 6.875%, 2012 1,066,759 29 500M News America, Inc., 5.3%, 2014 496,695 13 705M Viacom, Inc., 8.625%, 2012 793,002 21 1,000M Walt Disney Co., 5.7%, 2011 1,024,076 28 - ------------------------------------------------------------------------------------------------------------------------- 4,171,630 112 - ------------------------------------------------------------------------------------------------------------------------- Metals/Mining--.4% 1,000M Alcoa, Inc., 6%, 2012 1,029,338 28 500M Vale Overseas, Ltd., 6.875%, 2036 518,844 14 - ------------------------------------------------------------------------------------------------------------------------- 1,548,182 42 - ------------------------------------------------------------------------------------------------------------------------- Real Estate Investment Trusts--.4% 625M Health Care Property Investors, Inc., 6%, 2017 628,209 17 700M Mack-Cali Realty LP, 7.75%, 2011 757,304 20 - ------------------------------------------------------------------------------------------------------------------------- 1,385,513 37 - ------------------------------------------------------------------------------------------------------------------------- Telecommunications--.9% 800M GTE Corp., 6.84%, 2018 867,418 23 600M SBC Communications, Inc., 6.25%, 2011 623,413 17 600M Verizon New York, Inc., 6.875%, 2012 633,872 17 1,000M Vodafone AirTouch PLC, 7.75%, 2010 1,068,072 29 - ------------------------------------------------------------------------------------------------------------------------- 3,192,775 86 - ------------------------------------------------------------------------------------------------------------------------- Transportation--.5% 500M Burlington Northern Santa Fe Corp., 4.3%, 2013 471,138 13 335M FedEx Corp., 5.5%, 2009 337,743 9 1,000M Union Pacific Corp., 7.375%, 2009 1,056,202 28 - ------------------------------------------------------------------------------------------------------------------------- 1,865,083 50 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) TOTAL RETURN FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Utilities--1.3% $1,000M Carolina Power & Light, Inc., 5.15%, 2015 $983,622 $26 350M Entergy Gulf States, Inc., 5.25%, 2015 334,298 9 500M Kinder Morgan Finance Co., 5.35%, 2011 493,055 13 1,000M Northern Border Pipeline Co., 7.1%, 2011 1,064,632 29 900M PP&L Capital Funding, Inc., 8.375%, 2007 904,911 24 900M Public Service Electric & Gas Co., 6.75%, 2016 985,321 27 - ------------------------------------------------------------------------------------------------------------------------- 4,765,839 128 - ------------------------------------------------------------------------------------------------------------------------- Waste Management--.3% 1,000M Waste Management, Inc., 6.875%, 2009 1,031,739 28 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Corporate Bonds (cost $42,451,964) 42,717,475 1,148 - ------------------------------------------------------------------------------------------------------------------------- MORTGAGE-BACKED CERTIFICATES--11.0% Fannie Mae--9.6% 13,291M 5.5%, 4/1/2033--3/1/2037 13,175,227 354 15,487M 6%, 5/1/2036--1/1/2037 15,606,940 419 4,998M 6.5%, 11/1/2033--6/1/2036 5,105,071 137 1,952M 7%, 3/1/2032--8/1/2032 2,052,477 55 - ------------------------------------------------------------------------------------------------------------------------- 35,939,715 965 - ------------------------------------------------------------------------------------------------------------------------- Freddie Mac--.7% 2,525M 6%, 9/1/2032--10/1/2035 2,550,678 69 - ------------------------------------------------------------------------------------------------------------------------- Government National Mortgage Association--.7% 1,456M 6%, 4/15/2036 1,478,210 40 968M 6.5%, 8/15/2036 996,299 27 - ------------------------------------------------------------------------------------------------------------------------- 2,474,509 67 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Mortgage-Backed Certificates (cost $40,854,917) 40,964,902 1,101 - ------------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS--8.5% Fannie Mae: 5,000M 5.4%, 2013 4,975,450 134 4,000M 6%, 2014 4,005,272 108 5,000M 6%, 2015 5,002,675 134 4,000M 6%, 2016 4,003,564 108 1,000M 6%, 2016 1,000,462 27 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (continued) Federal Farm Credit Bank: $4,650M 4.94%, 2012 $4,592,280 $123 3,000M 5.33%, 2013 2,982,747 80 5,000M Federal Home Loan Bank, 6%, 2013 5,029,615 135 - ------------------------------------------------------------------------------------------------------------------------- Total Value of U.S. Government Agency Obligations (cost $31,619,671) 31,592,065 849 - ------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--2.6% 2,000M Contra Costa Cnty., CA, Pub. Fing. Lease Rev., 5%, 2013 2,136,240 58 2,000M Jefferson Cnty., AL, Ltd. Oblig. Sch. Dist., 5%, 2024 2,091,780 56 2,450M Los Angeles Cnty., CA, Met. Trans. Auth. Sales Tax, 5%, 2016 2,687,185 72 3,000M Tobacco Settlement Fing. Corp., NJ, Rev. Bonds, 4.625%, 2026 2,872,860 77 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $9,715,664) 9,788,065 263 - ------------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS--1.4% 5,000M U.S. Treasury Notes, 5.375%, 2031 (cost $5,389,626) 5,332,035 143 - ------------------------------------------------------------------------------------------------------------------------- PASS THROUGH CERTIFICATES--.2% Transportation 624M Continental Airlines, Inc., 8.388%, 2020 (cost $651,925) 655,977 17 - ------------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE NOTES--4.5% 1,200M ChevronTexaco Funding Corp., 5.22%, 4/4/07 1,199,303 32 14,500M General Electric Capital Corp., 5.23%, 4/4/07 14,491,561 389 1,100M Prudential Funding Corp., 5.28%, 4/2/07 1,099,677 30 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Short-Term Corporate Notes (cost $16,790,541) 16,790,541 451 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) TOTAL RETURN FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--1.5% Federal Home Loan Bank: $4,000M 5.16%, 4/4/07 $3,997,699 $107 1,700M 5.13%, 4/30/07 1,692,727 46 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Short-Term U.S. Government Obligations (cost $5,690,426) 5,690,426 153 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $318,426,914) 101.0% 375,737,599 10,100 Excess of Liabilities Over Other Assets (1.0) (3,721,223) (100) - ------------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $372,016,376 $10,000 ========================================================================================================================= * Non-income producing + Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 5). Summary of Abbreviations: ADR American Depositary Receipts REIT Real Estate Investment Trust See notes to financial statements Fund Expenses 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 4 for a detailed explanation of the information presented in these examples. Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/06) (3/31/07) (10/1/06-3/31/07)* - ------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,086.53 $6.97 Hypothetical (5% annual return before expenses) $1,000.00 $1,018.25 $6.74 - ------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,084.15 $10.60 Hypothetical (5% annual return before expenses) $1,000.00 $1,014.76 $10.25 - ------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.34% for Class A shares and 2.04% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Portfolio Composition TOP TEN SECTORS (BAR CHART DATA:) Financials 23.3% Consumer Discretionary 16.6% Consumer Staples 10.1% Industrials 8.0% Materials 7.2% Energy 7.1% Information Technology 5.1% Health Care 5.0% Utilities 4.7% Telecommunication Services 4.0% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2007, and are based on the total market value of investments. Portfolio of Investments (continued) VALUE FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--90.2% Consumer Discretionary--16.6% 10,500 Autoliv, Inc. $599,655 $14 63,000 Bob Evans Farms, Inc. 2,327,850 56 44,900 Carnival Corporation 2,104,014 51 34,300 CBS Corporation - Class "B" 1,049,237 25 91,500 Clear Channel Communications, Inc. 3,206,160 77 173,300 Dollar General Corporation 3,665,295 88 107,100 Family Dollar Stores, Inc. 3,172,302 76 20,100 Gannett Company, Inc. 1,131,429 27 46,000 Genuine Parts Company 2,254,000 54 55,100 H&R Block, Inc. 1,159,304 28 18,525 * Hanesbrands, Inc. 544,450 13 43,300 Haverty Furniture Companies, Inc. 606,200 15 84,100 Home Depot, Inc. 3,089,834 75 24,700 J.C. Penney Company, Inc. 2,029,352 49 50,600 Jones Apparel Group, Inc. 1,554,938 38 57,200 Kenneth Cole Productions, Inc. - Class "A" 1,468,324 35 89,000 Lee Enterprises, Inc. 2,674,450 65 111,400 Leggett & Platt, Inc. 2,525,438 61 27,900 Liz Claiborne, Inc. 1,195,515 29 16,400 Magna International, Inc. - Class "A" 1,231,804 30 103,200 McDonald's Corporation 4,649,160 112 104,100 Modine Manufacturing Company 2,383,890 57 94,700 New York Times Company - Class "A" 2,226,397 54 42,500 Newell Rubbermaid, Inc. 1,321,325 32 78,800 OSI Restaurant Partners, Inc. 3,112,600 75 102,600 Pearson PLC (ADR) 1,756,512 42 108,100 Talbots, Inc. 2,553,322 62 54,700 Tiffany & Company 2,487,756 60 139,800 Time Warner, Inc. 2,756,856 66 77,800 Tribune Company 2,498,158 60 123,700 Walt Disney Company 4,258,991 103 32,920 * Wyndham Worldwide Corporation 1,124,218 27 - ------------------------------------------------------------------------------------------------------------------------- 68,718,736 1,656 - ------------------------------------------------------------------------------------------------------------------------- Consumer Staples--10.1% 84,800 Anheuser-Busch Companies, Inc. 4,279,008 103 76,400 Avon Products, Inc. 2,846,664 69 86,600 Coca-Cola Company 4,156,800 100 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Consumer Staples (continued) 59,400 ConAgra Foods, Inc. $1,479,654 $36 34,141 Del Monte Foods Company 391,939 9 45,200 Diageo PLC (ADR) 3,658,940 88 34,100 Estee Lauder Companies, Inc. - Class "A" 1,665,785 40 13,800 Fomento Economico Mexicano SA de CV (ADR) 1,523,382 37 53,800 H.J. Heinz Company 2,535,056 61 42,100 Kimberly-Clark Corporation 2,883,429 70 133,700 Kraft Foods, Inc. - Class "A" 4,232,942 102 19,900 Pepsi Bottling Group, Inc. 634,611 15 52,500 Ruddick Corporation 1,579,200 38 148,200 Sara Lee Corporation 2,507,544 60 56,800 Tasty Baking Company 495,864 12 106,700 Topps Company, Inc. 1,037,124 25 37,100 UST, Inc. 2,151,058 52 84,500 Wal-Mart Stores, Inc. 3,967,275 96 - ------------------------------------------------------------------------------------------------------------------------- 42,026,275 1,013 - ------------------------------------------------------------------------------------------------------------------------- Energy--7.1% 53,900 Anadarko Petroleum Corporation 2,316,622 56 45,300 BP PLC (ADR) 2,933,175 71 65,917 Chevron Corporation 4,875,221 117 54,400 ConocoPhillips 3,718,240 90 38,500 Diamond Offshore Drilling, Inc. 3,116,575 75 8,100 Hess Corporation 449,307 11 50,800 Marathon Oil Corporation 5,020,564 121 54,100 Royal Dutch Shell PLC - Class "A" (ADR) 3,586,830 86 57,600 Tidewater, Inc. 3,374,208 81 - ------------------------------------------------------------------------------------------------------------------------- 29,390,742 708 - ------------------------------------------------------------------------------------------------------------------------- Financials--22.9% 44,000 A.G. Edwards, Inc. 3,043,920 73 14,600 ACE, Ltd. 833,076 20 15,700 Allstate Corporation 942,942 23 18,400 American International Group, Inc. 1,236,848 30 102,800 Amvescap PLC (ADR) 2,271,880 55 63,800 Aon Corporation 2,421,848 58 102,300 Aspen Insurance Holdings, Ltd. 2,681,283 65 35,100 Assured Guaranty, Ltd. 958,932 23 153,200 Bank Mutual Corporation 1,741,884 42 88,266 Bank of America Corporation 4,503,331 109 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) VALUE FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Financials (continued) 101,800 Bank of New York Company, Inc. $4,127,990 $100 98,250 Brookfield Asset Management, Inc. - Class "A" 5,134,545 124 86,400 Brookline Bancorp, Inc. 1,094,688 26 25,903 Capital One Financial Corporation 1,954,640 47 35,456 Chubb Corporation 1,832,012 44 54,047 Cincinnati Financial Corporation 2,291,593 55 77,100 Citigroup, Inc. 3,958,314 95 40,900 Comerica, Inc. 2,418,008 58 56,900 Eagle Hospitality Properties Trust, Inc. (REIT) 634,435 15 39,649 Erie Indemnity Company - Class "A" 2,092,278 50 21,000 FBL Financial Group, Inc. - Class "A" 821,730 20 91,300 Hudson City Bancorp, Inc. 1,248,984 30 25,000 IPC Holdings, Ltd. 721,250 17 92,100 JPMorgan Chase & Company 4,455,798 107 52,100 KeyCorp 1,952,187 47 44,074 Lincoln National Corporation 2,987,776 72 41,900 Merrill Lynch & Company, Inc. 3,421,973 83 53,600 Morgan Stanley 4,221,536 102 119,200 NewAlliance Bancshares, Inc. 1,932,232 47 29,900 One Liberty Properties, Inc. (REIT) 682,019 17 55,800 Plum Creek Timber Company, Inc. (REIT) 2,199,636 53 31,500 PMI Group, Inc. 1,424,430 34 33,900 PNC Financial Services Group, Inc. 2,439,783 59 76,400 Progressive Corporation 1,667,048 40 51,000 Protective Life Corporation 2,246,040 54 107,117 Regions Financial Corporation 3,788,728 91 19,300 St. Joe Company 1,009,583 24 37,893 State Street Corporation 2,453,572 59 36,700 SunTrust Banks, Inc. 3,047,568 74 29,779 TD Banknorth, Inc. 957,693 23 54,000 Waddell & Reed Financial, Inc. - Class "A" 1,259,280 30 9,000 Washington Mutual, Inc. 363,420 9 87,300 Wells Fargo & Company 3,005,739 73 38,600 Westfield Financial, Inc. 413,792 10 - ------------------------------------------------------------------------------------------------------------------------- 94,896,244 2,287 - ------------------------------------------------------------------------------------------------------------------------- Health Care--5.0% 74,800 Abbott Laboratories 4,173,840 101 42,700 Biomet, Inc. 1,814,323 44 49,100 GlaxoSmithKline PLC (ADR) 2,713,266 65 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Health Care (continued) 70,400 Johnson & Johnson $4,242,304 $102 32,100 Novartis AG (ADR) 1,753,623 42 153,400 Pfizer, Inc. 3,874,884 93 82,100 Schering-Plough Corporation 2,094,371 51 - ------------------------------------------------------------------------------------------------------------------------- 20,666,611 498 - ------------------------------------------------------------------------------------------------------------------------- Industrials--8.0% 26,000 3M Company 1,987,180 48 29,800 Adesa, Inc. 823,374 20 2,600 Alexander & Baldwin, Inc. 131,144 3 29,800 Avery Dennison Corporation 1,914,948 46 11,960 * Avis Budget Group, Inc. 326,747 8 51,200 Dover Corporation 2,499,072 60 72,200 Federal Signal Corporation 1,120,544 27 41,600 General Dynamics Corporation 3,178,240 77 71,300 Honeywell International, Inc. 3,284,078 79 17,800 Hubbell, Inc. 858,672 21 21,000 Illinois Tool Works, Inc. 1,083,600 26 9,130 Lawson Products, Inc. 345,844 8 77,700 Masco Corporation 2,128,980 51 39,600 Norfolk Southern Corporation 2,003,760 48 22,600 Pall Corporation 858,800 21 52,600 Pitney Bowes, Inc. 2,387,514 58 12,800 SPX Corporation 898,560 22 95,500 Tyco International, Ltd. 3,013,025 73 28,400 United Parcel Service, Inc. - Class "B" 1,990,840 48 133,600 Werner Enterprises, Inc. 2,427,512 58 - ------------------------------------------------------------------------------------------------------------------------- 33,262,434 802 - ------------------------------------------------------------------------------------------------------------------------- Information Technology--5.1% 99,400 * Agile Software Corporation 690,830 16 46,000 Automatic Data Processing, Inc. 2,226,400 54 45,700 AVX Corporation 694,640 17 32,400 Bel Fuse, Inc. - Class "B" 1,254,204 30 76,400 Hewlett-Packard Company 3,066,696 74 65,000 Intel Corporation 1,243,450 30 12,200 International Business Machines Corporation 1,149,972 28 182,000 Methode Electronics, Inc. - Class "A" 2,688,140 65 114,500 Microsoft Corporation 3,191,115 77 66,000 Motorola, Inc. 1,166,220 28 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) VALUE FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Information Technology (continued) 92,800 Nokia Corporation - Class "A" (ADR) $2,126,976 $51 79,000 * Planar Systems, Inc. 684,930 16 34,000 Texas Instruments, Inc. 1,023,400 25 - ------------------------------------------------------------------------------------------------------------------------- 21,206,973 511 - ------------------------------------------------------------------------------------------------------------------------- Materials--7.2% 36,400 Air Products & Chemicals, Inc. 2,689,596 65 50,600 Albemarle Corporation 2,091,804 50 57,200 Alcoa, Inc. 1,939,080 47 106,830 Chemtura Corporation 1,167,652 28 56,600 Compass Minerals International, Inc. 1,890,440 46 92,300 Dow Chemical Company 4,232,878 102 79,200 Du Pont (E.I.) de Nemours & Company 3,914,856 94 63,400 Lubrizol Corporation 3,267,002 79 60,100 MeadWestvaco Corporation 1,853,484 45 73,830 Myers Industries, Inc. 1,379,144 33 145,900 Sappi, Ltd. (ADR) 2,277,499 55 66,600 Sonoco Products Company 2,502,828 60 45,223 Tronox, Inc. - Class "B" 632,218 15 - ------------------------------------------------------------------------------------------------------------------------- 29,838,481 719 - ------------------------------------------------------------------------------------------------------------------------- Telecommunication Services--3.9% 9,651 ALLTEL Corporation 598,362 14 135,430 AT&T, Inc. 5,340,005 129 11,800 CT Communications, Inc. 284,380 7 47,200 D&E Communications, Inc. 628,704 15 4,120 Embarq Corporation 232,162 6 33,800 Nippon Telegraph and Telephone Corporation (ADR) 892,658 22 142,600 Sprint Nextel Corporation 2,703,696 65 24,000 Telephone & Data Systems, Inc. 1,430,880 34 24,000 Telephone & Data Systems, Inc. - Special Shares 1,341,600 32 73,828 Verizon Communications, Inc. 2,799,558 67 9,978 Windstream Corporation 146,577 4 - ------------------------------------------------------------------------------------------------------------------------- 16,398,582 395 - ------------------------------------------------------------------------------------------------------------------------- Utilities--4.3% 32,550 American States Water Company 1,200,119 29 41,400 FPL Group, Inc. 2,532,438 61 36,100 KeySpan Corporation 1,485,515 36 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested Shares or For Each Principal $10,000 of Amount Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Utilities (continued) 79,350 MDU Resources Group, Inc. $2,280,519 $55 85,800 NiSource, Inc. 2,096,952 50 37,700 Northwest Natural Gas Company 1,721,759 41 40,300 ONEOK, Inc. 1,813,500 44 51,200 Southwest Gas Corporation 1,990,144 48 48,700 United Utilities PLC (ADR) 1,446,390 35 50,300 Vectren Corporation 1,438,580 35 - ------------------------------------------------------------------------------------------------------------------------- 18,005,916 434 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $272,159,871) 374,410,994 9,023 - ------------------------------------------------------------------------------------------------------------------------- CONVERTIBLE PREFERRED STOCKS--.4% Financials 56,900 Lehman Brothers Holdings, Inc., 6.25%, 2007 - Series "GIS" (cost $1,446,983) 1,578,975 38 - ------------------------------------------------------------------------------------------------------------------------- PREFERRED STOCKS--.2% Utilities 31,600 Entergy Louisiana, Inc., 7.6%, 2032 (cost $802,387) 794,740 19 - ------------------------------------------------------------------------------------------------------------------------- CORPORATE BONDS--.1% Utilities $500M Union Electric Co., 6.75%, 2008 (cost $499,768) 500,766 12 - ------------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE NOTES--5.6% General Electric Capital Corp.: 1,000M 5.23%, 4/4/07 999,417 24 1,100M 5.22%, 4/5/07 1,099,202 27 1,000M Prudential Funding Corp., 5.22%, 4/17/07 997,534 24 20,000M Toyota Motor Credit Co., 5.23%, 4/12/07 19,965,047 481 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Short-Term Corporate Notes (cost $23,061,200) 23,061,200 556 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) VALUE FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--3.4% $14,200M Federal Home Loan Bank, 5.16%, 4/4/07 (cost $14,191,833) $14,191,833 $342 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $312,162,042) 99.9% 414,538,508 9,990 Other Assets, Less Liabilities .1 391,048 10 - ------------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% 414,929,556 $10,000 ========================================================================================================================= * Non-income producing Summary of Abbreviations: ADR American Depositary Receipts REIT Real Estate Investment Trust See notes to financial statements Fund Expenses 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 4 for a detailed explanation of the information presented in these examples. Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/06) (3/31/07) (10/1/06-3/31/07)* - ------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,055.22 $7.17 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.95 $7.04 - ------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,052.04 $10.74 Hypothetical (5% annual return before expenses) $1,000.00 $1,014.46 $10.55 - ------------------------------------------------------------------------------------------- * 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 182/365 (to reflect the one-half year period). Portfolio Composition TOP TEN SECTORS (BAR CHART DATA:) Financials 19.5% Information Technology 15.5% Health Care 12.3% Consumer Staples 12.2% Industrials 11.6% Consumer Discretionary 10.7% Energy 10.7% Telecommunication Services 2.9% Materials 2.9% Utilities 1.0% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2007, and are based on the total market value of investments. Portfolio of Investments BLUE CHIP FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--99.1% Consumer Discretionary--10.7% 36,200 Best Buy Company, Inc. $1,763,664 $36 41,100 Carnival Corporation 1,925,946 39 81,300 CBS Corporation - Class "B" 2,486,967 50 51,400 Clear Channel Communications, Inc. 1,801,056 36 47,394 * Comcast Corporation - Class "A" 1,229,874 25 73,350 * Comcast Corporation - Special Class "A" 1,868,225 38 23,600 Gap, Inc. 406,156 8 57,200 H&R Block, Inc. 1,203,488 24 32,900 Hilton Hotels Corporation 1,183,084 24 138,500 Home Depot, Inc. 5,088,490 103 14,700 * Kohl's Corporation 1,126,167 23 97,400 Lowe's Companies, Inc. 3,067,126 62 88,700 McDonald's Corporation 3,995,935 81 148,400 News Corporation - Class "A" 3,431,008 69 17,000 NIKE, Inc. - Class "B" 1,806,420 36 73,800 Target Corporation 4,373,388 88 258,300 Time Warner, Inc. 5,093,676 103 52,800 TJX Companies, Inc. 1,423,488 29 40,300 Tribune Company 1,294,033 26 62,600 * Viacom, Inc. - Class "B" 2,573,486 52 134,000 Walt Disney Company 4,613,620 93 30,920 * Wyndham Worldwide Corporation 1,055,918 21 - ------------------------------------------------------------------------------------------------------------------------- 52,811,215 1,066 - ------------------------------------------------------------------------------------------------------------------------- Consumer Staples--12.1% 74,600 Altria Group, Inc. 6,550,626 132 68,800 Anheuser-Busch Companies, Inc. 3,471,648 70 88,600 Avon Products, Inc. 3,301,236 67 142,900 Coca-Cola Company 6,859,200 138 44,100 Coca-Cola Enterprises, Inc. 893,025 18 27,000 Colgate-Palmolive Company 1,803,330 36 36,800 Costco Wholesale Corporation 1,981,312 40 89,700 CVS Corporation 3,062,358 62 32,900 General Mills, Inc. 1,915,438 39 25,800 Hershey Foods Corporation 1,410,228 29 55,800 Kimberly-Clark Corporation 3,821,742 77 55,200 Kraft Foods, Inc. - Class "A" 1,747,632 35 96,900 PepsiCo, Inc. 6,158,964 124 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Consumer Staples (continued) 130,040 Procter & Gamble Company $8,213,326 $166 47,800 Walgreen Company 2,193,542 44 146,100 Wal-Mart Stores, Inc. 6,859,395 139 - ------------------------------------------------------------------------------------------------------------------------- 60,243,002 1,216 - ------------------------------------------------------------------------------------------------------------------------- Energy--10.6% 33,800 BP PLC (ADR) 2,188,550 44 140,100 Chevron Corporation 10,361,796 209 81,870 ConocoPhillips 5,595,815 113 231,000 ExxonMobil Corporation 17,428,950 352 74,600 Halliburton Company 2,367,804 48 15,500 Hess Corporation 859,785 17 84,200 Schlumberger, Ltd. 5,818,220 117 80,350 Spectra Energy Corporation 2,110,794 43 50,800 * Transocean, Inc. 4,150,360 84 29,200 Valero Energy Corporation 1,883,108 38 - ------------------------------------------------------------------------------------------------------------------------- 52,765,182 1,065 - ------------------------------------------------------------------------------------------------------------------------- Financials--19.5% 44,000 ACE, Ltd. 2,510,640 51 27,700 Allstate Corporation 1,663,662 34 89,500 American Express Company 5,047,800 102 121,600 American International Group, Inc. 8,173,952 165 17,900 Ameriprise Financial, Inc. 1,022,806 21 186,166 Bank of America Corporation 9,498,189 192 117,700 Bank of New York Company, Inc. 4,772,735 96 750 * Berkshire Hathaway, Inc. - Class "B" 2,730,000 55 44,100 Capital One Financial Corporation 3,327,786 67 33,800 Chubb Corporation 1,746,446 35 250,500 Citigroup, Inc. 12,860,670 260 28,600 Fannie Mae 1,560,988 31 40,500 Freddie Mac 2,409,345 49 170,968 JPMorgan Chase & Company 8,271,432 167 19,000 Lehman Brothers Holdings, Inc. 1,331,330 27 40,500 Marsh & McLennan Companies, Inc. 1,186,245 24 36,600 Mellon Financial Corporation 1,578,924 32 47,600 Merrill Lynch & Company, Inc. 3,887,492 78 65,700 Morgan Stanley 5,174,532 104 44,200 Progressive Corporation 964,444 19 20,500 SunTrust Banks, Inc. 1,702,320 34 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) BLUE CHIP FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Financials (continued) 41,000 Travelers Companies, Inc. $2,122,570 $43 56,500 U.S. Bancorp 1,975,805 40 75,600 Wachovia Corporation 4,161,780 84 62,000 Washington Mutual, Inc. 2,503,560 50 126,200 Wells Fargo & Company 4,345,066 88 - ------------------------------------------------------------------------------------------------------------------------- 96,530,519 1,948 - ------------------------------------------------------------------------------------------------------------------------- Health Care--12.3% 93,500 Abbott Laboratories 5,217,300 105 67,800 Aetna, Inc. 2,968,962 60 75,700 * Amgen, Inc. 4,230,116 85 34,600 Baxter International, Inc. 1,822,382 37 95,700 * Boston Scientific Corporation 1,391,478 28 127,800 Bristol-Myers Squibb Company 3,547,728 72 166,800 Johnson & Johnson 10,051,368 203 80,700 Medtronic, Inc. 3,959,142 80 63,200 Merck & Company, Inc. 2,791,544 56 80,300 Novartis AG (ADR) 4,386,789 88 359,560 Pfizer, Inc. 9,082,486 183 35,200 * St. Jude Medical, Inc. 1,323,872 27 36,800 Teva Pharmaceutical Industries, Ltd. (ADR) 1,377,424 28 26,400 * Triad Hospitals, Inc. 1,379,400 28 80,800 UnitedHealth Group, Inc. 4,279,976 86 60,100 Wyeth 3,006,803 61 - ------------------------------------------------------------------------------------------------------------------------- 60,816,770 1,227 - ------------------------------------------------------------------------------------------------------------------------- Industrials--11.6% 51,100 3M Company 3,905,573 79 29,400 Boeing Company 2,613,954 53 44,700 Caterpillar, Inc. 2,996,241 60 33,000 Dover Corporation 1,610,730 33 76,200 Emerson Electric Company 3,283,458 66 409,000 General Electric Company 14,462,240 292 55,300 Honeywell International, Inc. 2,547,118 51 29,400 Illinois Tool Works, Inc. 1,517,040 31 24,800 ITT Corporation 1,495,936 30 30,700 Lockheed Martin Corporation 2,978,514 60 67,700 Masco Corporation 1,854,980 37 34,500 Northrop Grumman Corporation 2,560,590 52 164,900 Tyco International, Ltd. 5,202,595 105 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Industrials (continued) 14,000 Union Pacific Corporation $1,421,700 $29 42,600 United Parcel Service, Inc. - Class "B" 2,986,260 60 93,700 United Technologies Corporation 6,090,500 123 - ------------------------------------------------------------------------------------------------------------------------- 57,527,429 1,161 - ------------------------------------------------------------------------------------------------------------------------- Information Technology--15.5% 37,400 Accenture, Ltd. - Class "A" 1,441,396 29 34,500 Analog Devices, Inc. 1,189,905 24 15,400 * Apple, Inc. 1,430,814 29 77,100 Applied Materials, Inc. 1,412,472 29 27,000 Automatic Data Processing, Inc. 1,306,800 26 234,200 * Cisco Systems, Inc. 5,979,126 121 135,500 * Corning, Inc. 3,081,270 62 166,700 * Dell, Inc. 3,869,107 78 31,500 * eBay, Inc. 1,044,225 21 301,800 * EMC Corporation 4,179,930 84 93,200 First Data Corporation 2,507,080 51 87,600 Hewlett-Packard Company 3,516,264 71 320,200 Intel Corporation 6,125,426 124 64,100 International Business Machines Corporation 6,042,066 122 38,600 Maxim Integrated Products, Inc. 1,134,840 23 505,300 Microsoft Corporation 14,082,711 284 109,700 Motorola, Inc. 1,938,399 39 201,200 Nokia Corporation - Class "A" (ADR) 4,611,504 93 183,300 * Oracle Corporation 3,323,229 67 45,600 QUALCOMM, Inc. 1,945,296 39 11,891 * Symantec Corporation 205,714 4 109,900 Texas Instruments, Inc. 3,307,990 67 93,200 Western Union Company 2,045,740 41 55,300 * Xerox Corporation 934,017 19 - ------------------------------------------------------------------------------------------------------------------------- 76,655,321 1,547 - ------------------------------------------------------------------------------------------------------------------------- Materials--2.9% 53,600 Alcoa, Inc. 1,817,040 37 71,156 * Cemex SA de CV (ADR) 2,330,359 47 87,900 Dow Chemical Company 4,031,094 81 57,900 DuPont (E.I.) de Nemours & Company 2,861,997 58 66,200 International Paper Company 2,409,680 49 18,300 Newmont Mining Corporation 768,417 15 - ------------------------------------------------------------------------------------------------------------------------- 14,218,587 287 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) BLUE CHIP FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested Shares or For Each Principal $10,000 of Amount Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Telecommunication Services--2.9% 145,800 AT&T, Inc. $5,748,894 $116 206,366 Sprint Nextel Corporation 3,912,699 79 121,500 Verizon Communications, Inc. 4,607,280 93 - ------------------------------------------------------------------------------------------------------------------------- 14,268,873 288 - ------------------------------------------------------------------------------------------------------------------------- Utilities--1.0% 160,700 Duke Energy Corporation 3,260,603 66 28,700 FPL Group, Inc. 1,755,579 35 - ------------------------------------------------------------------------------------------------------------------------- 5,016,182 101 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $336,956,755) 490,853,080 9,906 - ------------------------------------------------------------------------------------------------------------------------- SHORT-TERM U.S. GOVERNMENT AGENCY OBIGATIONS--.6% $3,000M Federal Home Loan Bank, 5.16%, 4/4/07 (cost $2,998,275) 2,998,275 61 - ------------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE NOTES--.3% 1,500M General Electric Capital Corp., 5.22%, 4/5/07 (cost $1,498,911) 1,498,911 30 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $341,453,941) 100.0% 495,350,266 9,997 Other Assets, Less Liabilities .0 159,185 3 - ------------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $495,509,451 $10,000 ========================================================================================================================= * Non-income producing Summary of Abbreviations: ADR American Depositary Receipts See notes to financial statements Fund Expenses 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 4 for a detailed explanation of the information presented in these examples. Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/06) (3/31/07) (10/1/06-3/31/07)* - ------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,110.50 $7.00 Hypothetical (5% annual return before expenses) $1,000.00 $1,018.30 $6.69 - ------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,106.87 $10.66 Hypothetical (5% annual return before expenses) $1,000.00 $1,014.81 $10.20 - ------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.33% for Class A shares and 2.03% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Portfolio Composition TOP TEN SECTORS (BAR CHART DATA:) Industrials 18.0% Consumer Discretionary 17.4% Information Technology 15.7% Financials 15.1% Health Care 10.8% Energy 7.6% Consumer Staples 6.9% Materials 6.0% Telecommunication Services 1.1% Utilities 0.9% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2007, and are based on the total market value of investments. Portfolio of Investments GROWTH & INCOME FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--99.7% Consumer Discretionary--17.4% 220,000 bebe stores, inc. $3,823,600 $46 106,250 * Blockbuster, Inc. - Class "A" 684,250 8 120,000 * Carter's, Inc. 3,040,800 37 200,000 CBS Corporation - Class "B" 6,118,000 74 150,000 Clear Channel Communications, Inc. 5,256,000 64 195,602 * Cost Plus, Inc. 1,956,020 24 281,600 Dollar General Corporation 5,955,840 72 250,000 * Eddie Bauer Holdings, Inc. 2,842,500 34 260,000 Foot Locker, Inc. 6,123,000 74 50,000 Genuine Parts Company 2,450,000 30 375,000 H&R Block, Inc. 7,890,000 96 175,000 Home Depot, Inc. 6,429,500 78 55,000 J.C. Penney Company, Inc. 4,518,800 55 50,000 Jones Apparel Group, Inc. 1,536,500 19 40,000 Journal Register Company 238,400 3 114,700 Kenneth Cole Productions, Inc. - Class "A" 2,944,349 36 155,000 Leggett & Platt, Inc. 3,513,850 42 203,900 * Lincoln Educational Services Corporation 2,897,419 35 215,000 McDonald's Corporation 9,685,750 117 260,000 * Morgans Hotel Group Company 5,462,600 66 221,700 Movado Group, Inc. 6,529,065 79 225,000 Newell Rubbermaid, Inc. 6,995,250 85 220,000 Orient-Express Hotels, Ltd. 13,160,400 159 55,000 Polo Ralph Lauren Corporation - Class "A" 4,848,250 59 275,000 * Quiksilver, Inc. 3,190,000 39 50,000 RadioShack Corporation 1,351,500 16 80,000 Sherwin-Williams Company 5,283,200 64 99,500 * Steiner Leisure, Ltd. 4,475,510 54 112,500 * Viacom, Inc. - Class "B" 4,624,875 56 500,000 Westwood One, Inc. 3,435,000 42 187,500 * Wyndham Worldwide Corporation 6,403,125 78 - ------------------------------------------------------------------------------------------------------------------------- 143,663,353 1,741 - ------------------------------------------------------------------------------------------------------------------------- Consumer Staples--6.9% 155,000 Altria Group, Inc. 13,610,550 165 175,000 Avon Products, Inc. 6,520,500 79 68,100 * Chattem, Inc. 4,013,814 49 52,500 Coca-Cola Company 2,520,000 31 185,000 CVS Corporation 6,315,900 77 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Consumer Staples (continued) 400,200 Nu Skin Enterprises, Inc. - Class "A" $6,611,304 $80 50,000 PepsiCo, Inc. 3,178,000 38 54,900 * Prestige Brands Holdings, Inc. 650,565 8 77,500 Procter & Gamble Company 4,894,900 59 94,516 Tootsie Roll Industries, Inc. 2,832,641 34 90,000 Wal-Mart Stores, Inc. 4,225,500 51 60,675 WD-40 Company 1,924,004 23 - ------------------------------------------------------------------------------------------------------------------------- 57,297,678 694 - ------------------------------------------------------------------------------------------------------------------------- Energy--7.7% 60,000 Anadarko Petroleum Corporation 2,578,800 31 3,000 * Cal Dive International, Inc. 36,630 -- 50,000 Chesapeake Energy Corporation 1,544,000 19 90,000 ConocoPhillips 6,151,500 75 115,000 ExxonMobil Corporation 8,676,750 105 20,000 * Houston Exploration Company 1,079,000 13 7,153 Hugoton Royalty Trust 180,113 2 16,548 Marathon Oil Corporation 1,635,439 20 80,000 Noble Corporation 6,294,400 76 75,000 * North American Energy Partners, Inc. 1,581,750 19 127,000 Sasol, Ltd. (ADR) 4,197,350 51 150,000 Suncor Energy, Inc. 11,452,500 139 70,000 * Swift Energy Company 2,923,900 35 100,000 * Transocean, Inc. 8,170,000 99 120,000 XTO Energy, Inc. 6,577,200 80 - ------------------------------------------------------------------------------------------------------------------------- 63,079,332 764 - ------------------------------------------------------------------------------------------------------------------------- Financials--15.1% 52,000 American Express Company 2,932,800 36 100,000 American International Group, Inc. 6,722,000 81 10,000 Ameriprise Financial, Inc. 571,400 7 130,000 Astoria Financial Corporation 3,456,700 42 150,000 Bank of America Corporation 7,653,000 93 150,000 Brookline Bancorp, Inc. 1,900,500 23 55,380 Capital One Financial Corporation 4,178,975 51 134,000 Citigroup, Inc. 6,879,560 83 200,000 Colonial BancGroup, Inc. 4,950,000 60 135,500 * First Mercury Financial Corporation 2,784,525 34 40,000 * Flagstone Reinsurance Holdings, Ltd. 539,200 7 43,370 Hartford Financial Services Group, Inc. 4,145,305 50 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) GROWTH & INCOME FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Financials (continued) 177,500 JPMorgan Chase & Company $8,587,450 $104 65,000 Lehman Brothers Holdings, Inc. 4,554,550 55 75,000 Merrill Lynch & Company, Inc. 6,125,250 74 90,000 Morgan Stanley 7,088,400 86 200,000 New York Community Bancorp, Inc. 3,518,000 43 265,000 NewAlliance Bancshares, Inc. 4,295,650 52 50,000 Plum Creek Timber Company, Inc. (REIT) 1,971,000 24 130,000 South Financial Group, Inc. 3,213,600 39 221,000 Sovereign Bancorp, Inc. 5,622,240 68 65,000 SunTrust Banks, Inc. 5,397,600 65 200,000 U.S. Bancorp 6,994,000 85 140,970 U.S.B. Holding Company, Inc. 3,198,609 39 100,000 Wachovia Corporation 5,505,000 67 132,500 Washington Mutual, Inc. 5,350,350 65 30,000 Webster Financial Corporation 1,440,300 17 140,000 Wells Fargo & Company 4,820,200 58 - ------------------------------------------------------------------------------------------------------------------------- 124,396,164 1,508 - ------------------------------------------------------------------------------------------------------------------------- Health Care--10.8% 160,000 Abbott Laboratories 8,928,000 108 80,000 Aetna, Inc. 3,503,200 42 46,700 * Amgen, Inc. 2,609,596 32 22,417 Baxter International, Inc. 1,180,703 14 105,000 Biomet, Inc. 4,461,450 54 100,000 * Boston Scientific Corporation 1,454,000 18 20,000 * Genentech, Inc. 1,642,400 20 155,000 Johnson & Johnson 9,340,300 113 50,000 * Laboratory Corporation of America Holdings 3,631,500 44 75,000 Medtronic, Inc. 3,679,500 44 80,000 Merck & Company, Inc. 3,533,600 43 50,000 * Momenta Pharmaceutical, Inc. 648,000 8 425,000 Pfizer, Inc. 10,735,500 130 125,000 Sanofi-Aventis (ADR) 5,438,750 66 125,000 * St. Jude Medical, Inc. 4,701,250 57 100,000 * Thermo Fisher Scientific, Inc. 4,675,000 57 80,000 * Triad Hospitals, Inc. 4,180,000 51 90,000 * TriZetto Group, Inc. 1,800,900 22 55,000 UnitedHealth Group, Inc. 2,913,350 35 24,000 * Waters Corporation 1,392,000 17 175,000 Wyeth 8,755,250 106 - ------------------------------------------------------------------------------------------------------------------------- 89,204,249 1,081 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Industrials--18.0% 155,000 3M Company $11,846,650 $144 17,500 Aegean Marine Petroleum Network, Inc. 294,700 4 84,600 Alexander & Baldwin, Inc. 4,267,224 52 250,300 * Altra Holdings, Inc. 3,431,613 42 90,000 * Armstrong World Industries, Inc. 4,576,500 55 50,000 * Avis Budget Group, Inc. 1,366,000 16 210,000 Barnes Group, Inc. 4,832,100 59 100,000 * BE Aerospace, Inc. 3,170,000 38 90,000 Burlington Northern Santa Fe Corporation 7,238,700 88 100,000 Caterpillar, Inc. 6,703,000 81 200,000 * Gardner Denver, Inc. 6,970,000 84 250,000 General Electric Company 8,840,000 107 60,000 * Genlyte Group, Inc. 4,233,000 51 124,600 Harsco Corporation 5,589,556 68 197,500 Honeywell International, Inc. 9,096,850 110 40,500 Hubbell, Inc. - Class "B" 1,953,720 24 120,000 Illinois Tool Works, Inc. 6,192,000 75 282,600 Knoll, Inc. 6,734,358 82 55,000 Lockheed Martin Corporation 5,336,100 65 50,000 * Mobile Mini, Inc. 1,339,000 16 160,000 * Navigant Consulting, Inc. 3,161,600 38 90,000 Northrop Grumman Corporation 6,679,800 81 150,000 * PGT, Inc. 1,800,000 22 100,000 * Pinnacle Airlines Corporation 1,729,000 21 90,000 Precision Castparts Corporation 9,364,500 113 50,000 Steelcase, Inc. - Class "A" 994,500 12 165,000 TAL International Group , Inc. 3,960,000 48 195,000 Tyco International, Ltd. 6,152,250 74 170,000 United Technologies Corporation 11,050,000 134 - ------------------------------------------------------------------------------------------------------------------------- 148,902,721 1,804 - ------------------------------------------------------------------------------------------------------------------------- Information Technology--15.7% 180,000 * Arris Group, Inc. 2,534,400 31 30,000 * CACI International, Inc. - Class "A" 1,405,800 17 300,000 * Cisco Systems, Inc. 7,659,000 93 245,700 * Electronics for Imaging, Inc. 5,761,665 70 412,500 * EMC Corporation 5,713,125 69 300,000 * Entrust, Inc. 1,209,000 15 120,000 First Data Corporation 3,228,000 39 3,100 * Glu Mobile, Inc. 31,000 -- - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) GROWTH & INCOME FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Information Technology (continued) 145,000 Harris Corporation $7,387,750 $89 165,000 Hewlett-Packard Company 6,623,100 80 185,000 Intel Corporation 3,539,050 43 115,000 International Business Machines Corporation 10,839,900 131 30,000 * International Rectifier Corporation 1,146,300 14 350,000 Microsoft Corporation 9,754,500 118 275,000 Motorola, Inc. 4,859,250 59 198,400 * NCI, Inc. - Class "A" 2,926,400 35 200,000 Nokia Corporation - Class "A" (ADR) 4,584,000 56 360,000 * Openwave Systems, Inc. 2,934,000 36 279,900 * Parametric Technology Corporation 5,343,291 65 110,000 * Paxar Corporation 3,157,000 38 135,000 QUALCOMM, Inc. 5,759,100 70 400,000 * Silicon Image, Inc. 3,264,000 40 375,000 * Smart Modular Technologies (WWH), Inc. 4,796,250 58 229,840 * Symantec Corporation 3,976,232 48 400,000 * TIBCO Software, Inc. 3,408,000 41 130,000 * Varian Semiconductor Equipment Associates, Inc. 6,939,400 84 140,000 * VeriSign, Inc. 3,516,800 43 120,000 Western Union Company 2,634,000 32 175,000 Xilinx, Inc. 4,502,750 55 - ------------------------------------------------------------------------------------------------------------------------- 129,433,063 1,569 - ------------------------------------------------------------------------------------------------------------------------- Materials--6.1% 30,000 Ashland, Inc. 1,968,000 24 300,000 Celanese Corporation 9,252,000 112 105,000 Dow Chemical Company 4,815,300 58 80,000 Freeport-McMoRan Copper & Gold, Inc. - Class "B" 5,295,200 64 125,000 Lubrizol Corporation 6,441,250 78 45,000 PPG Industries, Inc. 3,163,950 38 65,000 Praxair, Inc. 4,092,400 50 200,000 RPM International, Inc. 4,620,000 56 50,000 Scotts Miracle-Gro Company - Class "A" 2,201,500 27 135,000 Temple-Inland, Inc. 8,064,900 98 - ------------------------------------------------------------------------------------------------------------------------- 49,914,500 605 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested Shares or For Each Principal $10,000 of Amount Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Telecommunication Services--1.1% 165,000 AT&T, Inc. $6,505,950 $79 75,000 Verizon Communications, Inc. 2,844,000 34 - ------------------------------------------------------------------------------------------------------------------------- 9,349,950 113 - ------------------------------------------------------------------------------------------------------------------------- Utilities--.9% 115,400 Atmos Energy Corporation 3,609,712 44 75,000 Consolidated Edison, Inc. 3,829,500 46 - ------------------------------------------------------------------------------------------------------------------------- 7,439,212 90 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $614,096,552) 822,680,222 9,969 - ------------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE NOTES--.4% $3,600M Prudential Funding Corp., 5.22%, 4/17/07 (cost $3,591,123) 3,591,123 44 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $617,687,675) 100.1% 826,271,345 10,013 Excess of Liabilities Over Other Assets (.1) (1,054,529) (13) - ------------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $825,216,816 $10,000 ========================================================================================================================= * Non-income producing Summary of Abbreviations: ADR American Depositary Receipts REIT Real Estate Investment Trust See notes to financial statements Fund Expenses SELECT 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 4 for a detailed explanation of the information presented in these examples. Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/06) (3/31/07) (10/1/06-3/31/07)* - ------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,060.84 $7.55 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.60 $7.39 - ------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,056.26 $11.12 Hypothetical (5% annual return before expenses) $1,000.00 $1,014.11 $10.90 - ------------------------------------------------------------------------------------------- * 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 182/365 (to reflect the one-half year period). Portfolio Composition BY SECTOR (BAR CHART DATA:) Information Technology 31.5% Industrials 19.5% Health Care 11.4% Consumer Discretionary 10.2% Financials 8.9% Energy 4.6% Consumer Staples 3.8% Materials 3.3% Telecommunication Services 3.3% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2007, and are based on the total market value of investments. Portfolio of Investments SELECT GROWTH FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--96.8% Consumer Discretionary--10.3% 21,500 Abercrombie & Fitch Company - Class "A" $1,627,120 $72 25,500 * California Pizza Kitchen, Inc. 838,695 37 39,000 * CarMax, Inc. 957,060 42 10,380 * Children's Place Retail Stores, Inc. 578,789 26 23,990 * Focus Media Holding, Ltd. (ADR) 1,882,255 83 24,740 * Fossil, Inc. 654,868 29 18,300 * Gildan Activewear, Inc. 1,076,955 47 26,390 * Jarden Corporation 1,010,737 45 23,500 * Net Servicos de Comunicacao SA (ADR) 317,485 14 51,900 PETsMART, Inc. 1,710,624 75 13,510 * Pinnacle Entertainment, Inc. 392,736 17 21,170 * Priceline.com, Inc. 1,127,514 50 153,610 Staples, Inc. 3,969,282 175 37,490 Starwood Hotels & Resorts Worldwide, Inc. 2,431,227 107 12,350 * Tween Brands, Inc. 441,142 19 20,220 * VistaPrint, Ltd. 774,426 34 103,136 Walt Disney Company 3,550,972 156 - ------------------------------------------------------------------------------------------------------------------------- 23,341,887 1,028 - ------------------------------------------------------------------------------------------------------------------------- Consumer Staples--3.8% 22,800 Clorox Company 1,452,132 64 10,670 * Herbalife, Ltd. 418,157 18 43,530 PepsiCo, Inc. 2,766,767 122 38,660 Procter & Gamble Company 2,441,766 107 42,200 SUPERVALU, Inc. 1,648,754 73 - ------------------------------------------------------------------------------------------------------------------------- 8,727,576 384 - ------------------------------------------------------------------------------------------------------------------------- Energy--4.6% 12,560 Arch Coal, Inc. 385,466 17 9,675 Cabot Oil & Gas Corporation - Class "A" 651,321 29 152,320 Cameco Corporation 6,235,981 275 33,470 * Complete Production Services, Inc. 666,388 29 39,570 Halliburton Company 1,255,952 55 24,600 Murphy Oil Corporation 1,313,640 58 - ------------------------------------------------------------------------------------------------------------------------- 10,508,748 463 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) SELECT GROWTH FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Financials--8.9% 22,100 Allied World Assurance Holdings, Ltd. $944,775 $42 2,290 Chicago Mercantile Exchange Holdings, Inc. - Class "A" 1,219,333 54 50,600 * E*TRADE Financial Corporation 1,073,732 47 32,790 Franklin Resources, Inc. 3,962,016 174 6,900 Goldman Sachs Group, Inc. 1,425,747 63 5,590 * Move, Inc. 30,969 1 9,570 Nuveen Investments, Inc. - Class "A" 452,661 20 15,430 * ProAssurance Corporation 789,245 35 60,060 State Street Corporation 3,888,885 171 37,300 T. Rowe Price Group, Inc. 1,760,187 78 77,960 UBS AG 4,633,163 204 - ------------------------------------------------------------------------------------------------------------------------- 20,180,713 889 - ------------------------------------------------------------------------------------------------------------------------- Health Care--11.4% 16,290 * Alkermes, Inc. 251,518 11 11,380 * Amylin Pharmaceuticals, Inc. 425,157 19 24,220 * AngioDynamics, Inc. 409,076 18 30,600 AstraZeneca PLC (ADR) 1,641,690 72 21,200 Beckman Coulter, Inc. 1,354,468 60 10,300 * Cephalon, Inc. 733,463 32 20,380 * Digene Corporation 864,316 38 20,500 * Hologic, Inc. 1,181,620 52 34,800 Manor Care, Inc. 1,891,728 83 85,590 Medtronic, Inc. 4,199,045 185 9,700 * Respironics, Inc. 407,303 18 46,630 Sanofi-Aventis (ADR) 2,028,871 90 237,030 Schering-Plough Corporation 6,046,635 266 13,040 Sirona Dental Systems, Inc. 449,358 20 38,600 * St. Jude Medical, Inc. 1,451,746 64 49,000 UnitedHealth Group, Inc. 2,595,530 114 - ------------------------------------------------------------------------------------------------------------------------- 25,931,524 1,142 - ------------------------------------------------------------------------------------------------------------------------- Industrials--19.6% 34,530 Aircastle, Ltd. 1,221,671 54 27,760 * American Commercial Lines, Inc. 873,052 38 24,780 * American Reprographics Company 762,976 34 60,290 Boeing Company 5,360,384 236 17,000 C. H. Robinson Worldwide, Inc. 811,750 36 3,920 Copa Holdings SA - Class "A" 201,841 9 60,550 Danaher Corporation 4,326,297 190 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Industrials (continued) 58,900 Equifax, Inc. $2,146,905 $94 14,900 Fluor Corporation 1,336,828 59 82,740 General Dynamics Corporation 6,321,336 278 165,420 General Electric Company 5,849,251 258 18,410 * IHS, Inc - Class "A" 756,835 33 16,950 Landstar System, Inc. 776,988 34 21,800 Manpower, Inc. 1,608,186 71 26,400 * Monster Worldwide, Inc. 1,250,568 55 14,800 Parker Hannifin Corporation 1,277,388 56 28,070 * Resources Connection, Inc. 897,959 39 20,700 Robert Half International, Inc. 766,107 34 13,500 Rockwell Collins, Inc. 903,555 40 37,600 * TeleTech Holdings, Inc. 1,379,544 61 57,950 United Parcel Service, Inc. - Class "B" 4,062,295 179 46,740 Waste Management, Inc. 1,608,323 71 - ------------------------------------------------------------------------------------------------------------------------- 44,500,039 1,959 - ------------------------------------------------------------------------------------------------------------------------- Information Technology--31.6% 139,560 Accenture, Ltd. - Class "A" 5,378,642 237 54,270 * Activision, Inc. 1,027,874 45 93,880 * Adobe Systems, Inc. 3,914,796 172 51,900 * Altera Corporation 1,037,481 46 23,060 * Apple, Inc. 2,142,505 94 101,990 * Autodesk, Inc. 3,834,824 169 63,130 Automatic Data Processing, Inc. 2,972,752 131 230,130 * Cisco Systems, Inc. 5,875,219 259 14,000 * Cognizant Technology Solutions Corporation - Class "A" 1,235,780 54 30,860 * eBay, Inc. 1,023,009 45 32,680 * Electronic Arts, Inc. 1,645,765 72 244,030 * EMC Corporation 3,379,815 149 8,690 * Equinix, Inc. 744,125 33 11,450 * Google, Inc. - Class "A" 5,245,932 231 34,300 International Business Machines Corporation 3,233,118 142 27,800 KLA-Tencor Corporation 1,482,296 65 66,820 Linear Technology Corporation 2,110,844 93 88,440 MoneyGram International, Inc. 2,455,094 108 194,640 * Network Appliance, Inc. 7,108,253 313 435,040 * Oracle Corporation 7,887,275 347 33,900 * Red Hat, Inc. 777,327 34 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) SELECT GROWTH FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested Shares or For Each Principal $10,000 of Amount Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Information Technology (continued) 15,230 * Research In Motion, Ltd. $2,078,743 $92 17,160 * Silicon-On-Insulator Technologies + 407,968 18 64,320 * Smart Modular Technologies (WWH), Inc. 822,653 36 18,200 * Sonus Networks, Inc. 146,874 7 10,520 * Trina Solar, Ltd. (ADR) 463,722 20 35,670 * VeriFone Holdings, Inc. 1,310,159 59 86,500 Western Union Company 1,898,675 84 - ------------------------------------------------------------------------------------------------------------------------- 71,641,520 3,155 - ------------------------------------------------------------------------------------------------------------------------- Materials--3.3% 29,120 Agrium, Inc. 1,116,170 49 41,570 Companhia Vale do Rio Doce (ADR) 1,537,674 68 24,360 Freeport-McMoRan Copper & Gold, Inc. - Class "B" 1,612,388 71 14,680 Potash Corporation of Saskatchewan, Inc. 2,347,772 103 51,820 * Terra Industries, Inc. 906,850 40 - ------------------------------------------------------------------------------------------------------------------------- 7,520,854 331 - ------------------------------------------------------------------------------------------------------------------------- Telecommunication Services--3.3% 95,020 * American Tower Corporation - Class "A" 3,701,029 163 39,820 AT&T, Inc. 1,570,103 69 16,880 * Leap Wireless International, Inc. 1,113,742 48 14,100 * NII Holdings, Inc. - Class "B" 1,045,938 46 - ------------------------------------------------------------------------------------------------------------------------- 7,430,812 326 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $189,299,439) 219,783,673 9,677 - ------------------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENT--3.5% $ 7,943M UBS Securities 5.12%, dated 3/30/07, to be repurchased at $7,946,389 on 4/2/07 (collateralized by U.S. Treasury Bonds, 6.375%, 8/15/27, valued at $8,106,081) (cost $7,943,000) 7,943,000 350 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $197,242,439) 100.3% 227,726,673 10,027 Excess of Liabilities Over Other Assets (.3) (608,893) (27) - ------------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $227,117,780 $10,000 ========================================================================================================================= * Non-income producing + Security valued at fair value (see Note 1A) Summary of Abbreviations: ADR American Depositary Receipts See notes to financial statements Fund Expenses GLOBAL 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 4 for a detailed explanation of the information presented in these examples. Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/06) (3/31/07) (10/1/06-3/31/07)* - ------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,103.74 $9.13 Hypothetical (5% annual return before expenses) $1,000.00 $1,016.25 $8.75 - ------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,099.93 $12.77 Hypothetical (5% annual return before expenses) $1,000.00 $1,012.76 $12.24 - ------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.74% for Class A shares and 2.44% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Portfolio Composition TOP TEN COUNTRIES (BAR CHART DATA:) United States 43.1% Japan 9.1% France 5.5% Germany 5.2% United Kingdom 5.0% Netherlands 4.1% Canada 4.0% Switzerland 3.9% Brazil 2.9% Italy 2.9% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2007, and are based on the total market value of investments. Portfolio of Investments GLOBAL FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--98.6% United States--43.0% 14,940 Abbott Laboratories $833,652 $28 54,400 Accenture, Ltd. - Class "A" 2,096,576 71 24,025 ACE, Ltd. 1,370,867 46 46,500 * Adobe Systems, Inc. 1,939,050 65 10,700 * Affiliated Managers Group, Inc. 1,159,345 39 19,000 * Alliance Data Systems Corporation 1,170,780 40 16,000 Altria Group, Inc. 1,404,960 47 76,160 American Electric Power Company, Inc. 3,712,800 125 39,653 American International Group, Inc. 2,665,475 90 18,200 * Amgen, Inc. 1,017,016 34 14,000 Amphenol Corporation - Class "A" 903,980 31 3,300 * Apple, Inc. 306,603 10 42,200 AT&T, Inc. 1,663,946 56 14,750 Automatic Data Processing, Inc. 642,980 22 53,300 Bank of America Corporation 2,719,366 92 9,580 Boeing Company 851,758 29 8,900 * Cameron International Corporation 558,831 19 8,100 Cardinal Health, Inc. 590,895 20 36,000 * Carter's, Inc. 912,240 31 30,980 Caterpillar, Inc. 2,076,589 70 41,065 CBS Corporation - Class "B" 1,256,178 42 10,800 * Cephalon, Inc. 769,068 26 102,500 * Cisco Systems, Inc. 2,616,825 88 67,219 Citigroup, Inc. 3,451,023 116 18,700 Colgate-Palmolive Company 1,248,973 42 48,900 * Complete Production Services, Inc. 973,599 33 23,415 ConocoPhillips 1,600,415 54 124,640 * Corning, Inc. 2,834,314 96 12,100 * Coventry Health Care, Inc. 678,205 23 16,335 Danaher Corporation 1,167,136 39 11,220 Dominion Resources, Inc. 995,999 34 7,200 Dover Corporation 351,432 12 64,500 * E*TRADE Financial Corporation 1,368,690 46 18,340 Eli Lilly & Company 985,041 33 203,200 * EMC Corporation 2,814,320 95 28,640 EOG Resources, Inc. 2,043,177 69 8,300 Exelon Corporation 570,293 19 59,000 ExxonMobil Corporation 4,451,550 150 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- United States (continued) 16,100 Federated Department Stores, Inc. $725,305 $24 9,750 Fluor Corporation 874,770 29 7,900 Franklin Resources, Inc. 954,557 32 3,100 Freeport-McMoRan Copper & Gold, Inc. 205,189 7 22,100 * Genentech, Inc. 1,814,852 61 12,000 General Dynamics Corporation 916,800 31 111,000 General Electric Company 3,924,960 132 7,300 General Mills, Inc. 425,006 14 20,800 * Genzyme Corporation 1,248,416 42 69,240 GlobalSantaFe Corporation 4,270,723 144 6,400 Goldman Sachs Group, Inc. 1,322,432 45 4,510 * Google, Inc. - Class "A" 2,066,302 70 23,400 Graco, Inc. 916,344 31 27,205 Halliburton Company 863,487 29 21,200 * Health Net, Inc. 1,140,772 38 36,460 Hewlett-Packard Company 1,463,504 49 16,400 International Business Machines Corporation 1,545,864 52 6,700 J.C. Penney Company, Inc. 550,472 19 29,500 Joy Global, Inc. 1,265,550 43 22,200 * Lam Research Corporation 1,050,948 35 6,000 Loews Corporation - Carolina Group 453,660 15 9,300 Manpower, Inc. 686,061 23 59,800 Maxim Integrated Products, Inc. 1,758,120 59 15,400 MDU Resources Group, Inc. 442,596 15 55,625 Medtronic, Inc. 2,728,963 92 8,500 * MEMC Electronic Materials, Inc. 514,930 17 20,800 Merrill Lynch & Company, Inc. 1,698,736 57 97,785 Microsoft Corporation 2,725,268 92 20,100 * NASDAQ Stock Market, Inc. 591,141 20 15,005 Newell Rubbermaid, Inc. 466,505 16 8,600 NIKE, Inc. - Class "B" 913,836 31 53,700 * Oracle Corporation 973,581 33 28,900 Patterson-UTI Energy, Inc. 648,516 22 10,200 Peabody Energy Corporation 410,448 14 14,900 PepsiCo, Inc. 947,044 32 40,600 PNC Financial Services Group, Inc. 2,921,982 98 18,500 Precision Castparts Corporation 1,924,925 65 20,100 * Priceline.com, Inc. 1,070,526 36 14,940 Procter & Gamble Company 943,610 32 16,710 QUALCOMM, Inc. 712,849 24 43,965 Schering-Plough Corporation 1,121,547 38 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) GLOBAL FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- United States (continued) 8,200 Simon Property Group, Inc. (REIT) $912,250 $31 16,800 * St. Jude Medical, Inc. 631,848 21 95,825 Staples, Inc. 2,476,118 83 35,100 State Street Corporation 2,272,725 77 14,100 * Terex Corporation 1,011,816 34 7,530 United Parcel Service, Inc. - Class "B" 527,853 18 15,100 United Technologies Corporation 981,500 33 38,600 UnitedHealth Group, Inc. 2,044,642 69 24,400 * Viacom, Inc. - Class "B" 1,003,084 34 34,900 W.R. Berkley Corporation 1,155,888 39 31,375 Wal-Mart Stores, Inc. 1,473,056 50 13,400 * Waters Corporation 777,200 26 15,735 * WellPoint, Inc. 1,276,109 43 - ------------------------------------------------------------------------------------------------------------------------- 127,519,133 4,298 - ------------------------------------------------------------------------------------------------------------------------- Japan--9.1% 60,900 Aisin Seiki Company, Ltd. 2,130,146 72 24,200 Astellas Pharma, Inc. 1,041,169 35 72,850 Canon, Inc. 3,905,488 132 85,000 Daihatsu Motor Company, Ltd. 807,707 27 20,200 Eisai Company, Ltd. 966,589 33 10,755 Eisai Company, Ltd. (ADR) 514,636 17 285,000 * Japan Airlines Corporation 591,361 20 746 Japan Tobacco, Inc. 3,658,133 123 45,000 Mitsubishi Estate Company, Ltd. 1,474,910 50 177 Mitsubishi UFJ Financial Group, Inc. 1,990,128 67 35,500 OMRON Corporation 953,081 32 3,600 ORIX Corporation 936,015 32 1,127 Rakuten, Inc. 535,462 18 93,000 Sompo Japan Insurance, Inc. 1,157,036 39 53,400 Sony Corporation 2,709,007 91 134,000 Sumitomo Chemical Company, Ltd. 1,010,036 34 18,200 TDK Corporation 1,575,304 53 32,400 Tokyo Electric Power Company, Inc. 1,105,840 37 - ------------------------------------------------------------------------------------------------------------------------- 27,062,048 912 - ------------------------------------------------------------------------------------------------------------------------- France--5.4% 21,793 Accor SA 2,075,358 70 15,535 * Alstom 2,009,006 67 56,099 Axa 2,370,223 80 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- France (continued) 24,627 BNP Paribas SA $2,563,243 $86 14,242 Essilor International SA 1,630,409 55 13,937 Iliad SA 1,445,776 49 28,673 PSA Peugeot Citroen 2,013,747 68 20,345 Sanofi-Aventis (ADR) 885,211 30 49,720 * Silicon-On-Insulator Technologies 1,182,060 40 - ------------------------------------------------------------------------------------------------------------------------- 16,175,033 545 - ------------------------------------------------------------------------------------------------------------------------- Germany--5.2% 16,774 Continental AG 2,160,080 73 30,365 DaimlerChrysler AG - Registered 2,495,150 84 12,626 Deutsche Boerse AG 2,890,149 97 52,597 Deutsche Telekom AG - Registered 866,079 29 119,326 * Infineon Technologies AG 1,852,084 62 63,560 * KarstadtQuelle AG 2,330,102 79 25,605 Siemens AG 2,727,069 92 - ------------------------------------------------------------------------------------------------------------------------- 15,320,713 516 - ------------------------------------------------------------------------------------------------------------------------- United Kingdom--5.0% 220,152 Amvescap PLC 2,418,066 82 655,017 Old Mutual PLC 2,108,234 71 63,723 Reckitt Benckiser PLC 3,307,072 111 347,542 Tesco PLC 3,028,254 102 78,773 Xstrata PLC 4,035,600 136 - ------------------------------------------------------------------------------------------------------------------------- 14,897,226 502 - ------------------------------------------------------------------------------------------------------------------------- Netherlands--4.1% 89,000 * AerCap Holdings NV 2,590,790 87 81,645 * ASML Holding NV 2,009,526 68 37,731 ING Groep NV 1,589,641 54 89,867 Koninklijke (Royal) Philips Electronics NV 3,420,121 115 51,674 Royal Numico NV 2,655,822 89 - ------------------------------------------------------------------------------------------------------------------------- 12,265,900 413 - ------------------------------------------------------------------------------------------------------------------------- Canada--4.0% 49,400 Cameco Corporation 2,022,436 68 44,900 EnCana Corporation 2,272,925 77 59,100 * Nortel Networks Corporation 1,420,060 48 3,060 * Research In Motion, Ltd. 417,659 14 14,900 * Research In Motion, Ltd. 2,035,487 69 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) GLOBAL FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Canada (continued) 101,900 Talisman Energy, Inc. $1,790,416 $60 37,400 Telus Corporation 1,913,036 64 - ------------------------------------------------------------------------------------------------------------------------- 11,872,019 400 - ------------------------------------------------------------------------------------------------------------------------- Switzerland--3.9% 31,975 Credit Suisse Group--Registered 2,283,929 77 23,049 Julius Baer Holding, Ltd. AG--Registered 3,130,344 105 12,720 Nestle SA--Registered 4,930,980 166 19,300 UBS AG--Registered 1,146,999 39 - ------------------------------------------------------------------------------------------------------------------------- 11,492,252 387 - ------------------------------------------------------------------------------------------------------------------------- Brazil--2.9% 133,800 All America Latina Logistica 1,633,589 55 189,630 Companhia Vale do Rio Doce (ADR) 7,014,414 237 - ------------------------------------------------------------------------------------------------------------------------- 8,648,003 292 - ------------------------------------------------------------------------------------------------------------------------- Italy--2.9% 381,923 Intesa Sanpaolo SpA 2,890,236 98 24,995 Tod's SpA 2,173,001 73 359,730 UniCredito Italiano SpA 3,411,840 115 - ------------------------------------------------------------------------------------------------------------------------- 8,475,077 286 - ------------------------------------------------------------------------------------------------------------------------- Hong Kong--2.7% 726,000 Cathay Pacific Airways, Ltd. 1,846,995 62 82,000 Dah Sing Financial Group 715,667 24 262,000 Hong Kong Exchanges & Clearing, Ltd. 2,553,194 86 100,100 * Melco PBL Entertainment (Macau), Ltd. (ADR) 1,615,614 55 580,000 Shangri-La Asia, Ltd. 1,435,480 48 - ------------------------------------------------------------------------------------------------------------------------- 8,166,950 275 - ------------------------------------------------------------------------------------------------------------------------- Russia--1.9% 44,650 Evraz Group SA (GDR) 1,495,775 51 9,400 LUKOIL (ADR) 812,160 27 54,550 OAO Gazprom (ADR) 2,285,645 77 27,100 * TMK OAO (GDR) + 910,560 31 - ------------------------------------------------------------------------------------------------------------------------- 5,504,140 186 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- China--1.8% 584,000 * China Merchants Bank Company, Ltd. $1,177,828 $40 326,000 China Shenhua Energy Company, Ltd. 788,483 26 18,700 Ctrip.com International, Ltd. 1,252,620 42 458,000 Hopson Development Holdings, Ltd. 1,149,945 39 1,300,000 Huaneng Power International, Inc. 1,131,267 38 - ------------------------------------------------------------------------------------------------------------------------- 5,500,143 185 - ------------------------------------------------------------------------------------------------------------------------- Mexico--.9% 21,800 America Movil SA de CV (ADR) - Series "L" 1,041,822 35 54,900 * Grupo Aeroportuario del Centro Norte SA de CV (ADR) 1,488,339 50 - ------------------------------------------------------------------------------------------------------------------------- 2,530,161 85 - ------------------------------------------------------------------------------------------------------------------------- South Africa--.8% 77,500 Impala Platinum Holdings, Ltd. 2,436,508 82 - ------------------------------------------------------------------------------------------------------------------------- Sweden--.8% 104,600 Assa Abloy - Class "B" 2,392,825 81 - ------------------------------------------------------------------------------------------------------------------------- Ireland--.8% 52,400 * Ryanair Holdings PLC (ADR) 2,346,996 79 - ------------------------------------------------------------------------------------------------------------------------- Egypt--.8% 33,600 Orascom Telecom Holding SAE 2,284,800 77 - ------------------------------------------------------------------------------------------------------------------------- South Korea--.5% 35,060 Korea Electric Power Corporation 1,399,642 47 - ------------------------------------------------------------------------------------------------------------------------- Singapore--.4% 111,000 Singapore Airlines, Ltd. 1,213,514 41 - ------------------------------------------------------------------------------------------------------------------------- Taiwan--.4% 54,832 Chunghwa Telecom Company, Ltd. (ADR) 1,092,253 37 - ------------------------------------------------------------------------------------------------------------------------- Finland--.3% 39,700 Nokia Oyj (ADR) 909,924 31 - ------------------------------------------------------------------------------------------------------------------------- India--.3% 37,900 Satyam Computer Services, Ltd. (ADR) 860,330 29 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) GLOBAL FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested Shares or For Each Principal $10,000 of Amount Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Belgium--.3% 14,221 UCB SA $824,793 $28 - ------------------------------------------------------------------------------------------------------------------------- Israel--.2% 18,800 Teva Pharmaceutical Industries, Ltd. (ADR) 703,684 24 - ------------------------------------------------------------------------------------------------------------------------- Australia--.2% 19,000 Woodside Petroleum, Ltd. (ADR) 606,140 20 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $250,145,143) 292,500,207 9,858 - ------------------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENT--1.1% $3,285M UBS Securities, 5.12%, dated 3/30/07, to be repurchased at $3,286,402 on 4/2/07 (collaterized by U.S. Treasury Bonds, 6.375%, 8/15/27, valued at $3,352,184) (cost $3,285,000) 3,285,000 111 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $253,430,143) 99.7% 295,785,207 9,969 Other Assets, Less Liabilities .3 919,796 31 - ------------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $296,705,003 $10,000 ========================================================================================================================= * Non-income producing + Security exempt from registration under rule 144A of the Securities Act of 1933 (see Note 5). Summary of Abbreviations: ADR American Depositary Receipts GDR Global 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 - ------------------------------------------------------------------------------------------------------------ Diversified Financials 10.9% $32,486,352 Energy 9.2 27,309,511 Capital Goods 8.8 25,983,270 Technology Hardware & Equipment 8.2 24,415,262 Materials 5.5 16,197,522 Banks 5.3 15,670,924 Food, Beverage & Tobacco 4.9 14,475,605 Software & Services 4.7 13,920,643 Pharmaceuticals, Biotechnology & Life Sciences 4.6 13,502,874 Insurance 3.6 10,827,723 Health Care Equipment & Services 3.6 10,721,843 Consumer Durables & Apparel 3.6 10,594,710 Transportation 3.3 9,648,647 Automobiles & Components 3.2 9,606,830 Utilities 3.2 9,358,437 Telecommunication Services 3.0 8,861,936 Semiconductors & Semiconductor Equipment 2.8 8,367,668 Retailing 2.6 7,687,985 Consumer Services 2.1 6,379,072 Household & Personal Products 1.9 5,499,655 Food & Staples Retailing 1.4 4,501,310 Real Estate 1.2 3,537,105 Media .8 2,259,262 Commercial Services & Supplies .2 686,061 Repurchase Agreement 1.1 3,285,000 - ------------------------------------------------------------------------------------------------------------ Total Value of Investments 99.7 295,785,207 Other Assets, Less Liabilities .3 919,796 - ------------------------------------------------------------------------------------------------------------ Net Assets 100.0% $296,705,003 ============================================================================================================ See notes to financial statements Fund Expenses 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 4 for a detailed explanation of the information presented in these examples. Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/06) (3/31/07) (10/1/06-3/31/07)* - ------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,128.88 $7.43 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.95 $7.04 - ------------------------------------------------------------------------------------------- Expense Example - Class B Share Actual $1,000.00 $1,125.30 $11.13 Hypothetical (5% annual return before expenses) $1,000.00 $1,014.46 $10.55 - ------------------------------------------------------------------------------------------- * 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 182/365 (to reflect the one-half year period). Portfolio Composition TOP TEN SECTORS (BAR CHART DATA:) Financials 19.0% Consumer Discretionary 15.5% Industrials 15.1% Information Technology 13.2% Health Care 9.3% Energy 7.8% Materials 6.5% Utilities 5.7% Consumer Staples 3.9% Telecommunication Services 2.0% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2007, and are based on the total market value of investments. Portfolio of Investments MID-CAP OPPORTUNITY FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--98.2% Consumer Discretionary--15.5% 61,400 * Aeropostale, Inc. $2,470,122 $47 145,000 bebe stores, inc. 2,520,100 48 75,000 BorgWarner, Inc. 5,656,500 108 34,000 * Children's Place Retail Stores, Inc. 1,895,840 36 102,000 * Coach, Inc. 5,105,100 97 180,000 Foot Locker, Inc. 4,239,000 81 48,000 Harman International Industries, Inc. 4,611,840 88 300,000 * Morgans Hotel Group Company 6,303,000 120 105,000 Movado Group, Inc. 3,092,250 59 215,000 * New York & Company, Inc. 3,394,850 65 29,000 Nordstrom, Inc. 1,535,260 29 111,000 * Office Depot, Inc. 3,900,540 74 110,000 Orient-Express Hotels, Ltd. 6,580,200 126 50,000 Polo Ralph Lauren Corporation - Class "A" 4,407,500 84 300,000 * Quiksilver, Inc. 3,480,000 66 107,500 * Red Robin Gourmet Burgers, Inc. 4,173,150 80 90,000 Tiffany & Company 4,093,200 78 108,000 Tupperware Corporation 2,692,440 51 300,000 * Warnaco Group, Inc. - Class "A" 8,520,000 163 95,000 Wolverine World Wide, Inc. 2,714,150 52 - ------------------------------------------------------------------------------------------------------------------------- 81,385,042 1,552 - ------------------------------------------------------------------------------------------------------------------------- Consumer Staples--3.9% 50,000 Altria Group, Inc. 4,390,500 84 145,000 * Constellation Brands, Inc. - Class "A" 3,071,100 58 130,000 * Dean Foods Company 6,076,200 116 185,000 Sara Lee Corporation 3,130,200 60 118,965 Tootsie Roll Industries, Inc. 3,565,381 68 - ------------------------------------------------------------------------------------------------------------------------- 20,233,381 386 - ------------------------------------------------------------------------------------------------------------------------- Energy--7.8% 97,500 Chesapeake Energy Corporation 3,010,800 58 50,000 EOG Resources, Inc. 3,567,000 68 50,000 GlobalSantaFe Corporation 3,084,000 59 80,000 * Grant Prideco, Inc. 3,987,200 76 86,000 Hess Corporation 4,770,420 91 120,000 Patterson-UTI Energy, Inc. 2,692,800 51 77,500 * Swift Energy Company 3,237,175 62 200,000 Talisman Energy, Inc. 3,512,000 67 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) MID-CAP OPPORTUNITY FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Energy (continued) 47,000 Technip SA (ADR) $3,426,300 $65 40,000 * Transocean, Inc. 3,268,000 62 70,000 * Weatherford International, Ltd. 3,157,000 60 60,000 XTO Energy, Inc. 3,288,600 63 - ------------------------------------------------------------------------------------------------------------------------- 41,001,295 782 - ------------------------------------------------------------------------------------------------------------------------- Financials--19.0% 70,000 A.G. Edwards, Inc. 4,842,600 92 52,500 Ambac Financial Group, Inc. 4,535,475 87 133,000 * AmeriCredit Corporation 3,040,380 58 187,500 Aspen Insurance Holdings, Ltd. 4,914,375 94 25,000 Bear Stearns Companies, Inc. 3,758,750 72 44,500 Capital One Financial Corporation 3,357,970 64 77,500 CIT Group, Inc. 4,101,300 78 72,500 City National Corporation 5,336,000 102 202,500 Colonial BancGroup, Inc. 5,011,875 96 60,500 DCT Industrial Trust, Inc. (REIT) 715,715 14 98,000 Douglas Emmett, Inc. (REIT) 2,501,940 48 30,000 Federal Realty Investment Trust (REIT) 2,718,600 52 36,000 * Flagstone Reinsurance Holdings, Ltd. 485,280 9 5,000 Fortress Investment Group - Class "A" 143,400 3 52,000 General Growth Properties, Inc. (REIT) 3,357,640 64 85,000 Health Care Property Investors, Inc. (REIT) 3,062,550 58 137,000 Hub International, Ltd. 5,710,160 109 117,000 Lazard, Ltd. - Class "A" 5,871,060 112 120,000 * NASDAQ Stock Market, Inc. 3,529,200 67 220,000 NewAlliance Bancshares, Inc. 3,566,200 68 85,000 PMI Group, Inc. 3,843,700 73 95,000 Protective Life Corporation 4,183,800 80 65,000 Radian Group, Inc. 3,567,200 68 1,000 SAFECO Corporation 66,430 1 215,000 Sovereign Bancorp, Inc. 5,469,600 104 92,500 Sunstone Hotel Investors, Inc. (REIT) 2,521,550 48 180,000 Waddell & Reed Financial, Inc. - Class "A" 4,197,600 80 63,500 Zions Bancorporation 5,367,020 102 - ------------------------------------------------------------------------------------------------------------------------- 99,777,370 1,903 - ------------------------------------------------------------------------------------------------------------------------- Health Care--9.3% 5,000 * Allscripts Healthcare Solutions, Inc. 134,050 3 48,000 * Barr Pharmaceuticals, Inc. 2,224,800 43 70,000 Beckman Coulter, Inc. 4,472,300 85 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Health Care (continued) 151,000 * Community Health Systems, Inc. $5,322,750 $102 165,000 DENTSPLY International, Inc. 5,403,750 103 312,000 * Exelixis, Inc. 3,101,280 59 13,000 * Express Scripts, Inc. 1,049,360 20 70,000 * Gilead Sciences, Inc. 5,355,000 102 54,500 * Laboratory Corporation of America Holdings 3,958,335 76 50,000 McKesson Corporation 2,927,000 56 67,500 * St. Jude Medical, Inc. 2,538,675 48 135,000 * Thermo Fisher Scientific, Inc. 6,311,250 120 105,000 * Waters Corporation 6,090,000 116 - ------------------------------------------------------------------------------------------------------------------------- 48,888,550 933 - ------------------------------------------------------------------------------------------------------------------------- Industrials--15.1% 70,000 * AMR Corporation 2,131,500 41 165,000 Chicago Bridge & Iron Company NV - NY Shares 5,073,750 97 37,000 FedEx Corporation 3,974,910 76 162,500 * Gardner Denver, Inc. 5,663,125 108 37,000 * Genlyte Group, Inc. 2,610,350 50 120,000 Harsco Corporation 5,383,200 103 123,000 J.B. Hunt Transport Services, Inc. 3,227,520 61 80,000 IDEX Corporation 4,070,400 78 216,000 * K&F Industries Holdings, Inc. 5,816,880 111 205,500 Knoll, Inc. 4,897,065 93 38,000 L-3 Communications Holdings, Inc. 3,323,860 63 70,000 Manpower, Inc. 5,163,900 98 100,500 * Mobile Mini, Inc. 2,691,390 51 67,500 Northrop Grumman Corporation 5,009,850 95 22,500 Precision Castparts Corporation 2,341,125 45 105,000 Regal-Beloit Corporation 4,869,900 93 90,000 Rolls-Royce Group PLC (ADR) 4,362,309 83 76,500 Roper Industries, Inc. 4,198,320 80 120,000 Southwest Airlines Company 1,764,000 34 130,000 * Williams Scotsman International, Inc. 2,555,800 49 - ------------------------------------------------------------------------------------------------------------------------- 79,129,154 1,509 - ------------------------------------------------------------------------------------------------------------------------- Information Technology--13.3% 213,500 * BEA Systems, Inc. 2,474,465 47 55,000 * Cadence Design Systems, Inc. 1,158,300 22 10,000 * Cognos, Inc. 393,900 8 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) MID-CAP OPPORTUNITY FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Information Technology (continued) 80,000 * DST Systems, Inc. $6,016,000 $115 187,500 * Electronics for Imaging, Inc. 4,396,875 84 70,000 Fair Isaac Corporation 2,707,600 52 108,000 Harris Corporation 5,502,600 105 280,000 * Ingram Micro, Inc. - Class "A" 5,406,800 103 110,000 * International Rectifier Corporation 4,203,100 80 181,000 Intersil Corporation - Class "A" 4,794,690 92 127,500 * Intuit, Inc. 3,488,400 67 85,000 * Lam Research Corporation 4,023,900 77 80,000 * MEMC Electronic Materials, Inc. 4,846,400 92 1,000 * OpNext, Inc. 14,790 -- 380,000 * Silicon Image, Inc. 3,100,800 59 436,500 * Smart Modular Technologies (WWH), Inc. 5,582,835 107 214,000 * Sybase, Inc. 5,409,920 103 110,000 * Varian Semiconductor Equipment Associates, Inc. 5,871,800 112 - ------------------------------------------------------------------------------------------------------------------------- 69,393,175 1,325 - ------------------------------------------------------------------------------------------------------------------------- Materials--6.5% 115,000 Agrium, Inc. 4,407,950 84 37,000 Allegheny Technologies, Inc. 3,947,530 75 51,000 Freeport-McMoRan Copper & Gold, Inc. - Class "B" 3,375,690 64 135,000 Louisiana-Pacific Corporation 2,708,100 52 100,000 Lubrizol Corporation 5,153,000 97 67,000 Praxair, Inc. 4,218,320 81 250,000 Sappi, Ltd. (ADR) 3,902,500 74 156,000 Sigma-Aldrich Corporation 6,477,120 124 - ------------------------------------------------------------------------------------------------------------------------- 34,190,210 651 - ------------------------------------------------------------------------------------------------------------------------- Telecommunication Services--2.1% 5,000 * Aruba Networks, Inc. 73,350 1 200,000 Citizens Communications Company 2,990,000 58 212,000 * NTELOS Holdings Corporation 4,074,640 78 171,000 * Time Warner Telecom, Inc. - Class "A" 3,551,670 68 - ------------------------------------------------------------------------------------------------------------------------- 10,689,660 205 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) MID-CAP OPPORTUNITY FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested Shares or For Each Principal $10,000 of Amount Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Utilities--5.7% 105,000 AGL Resources, Inc. $4,485,600 $86 88,000 California Water Service Group 3,372,160 64 102,000 Consolidated Edison, Inc. 5,208,120 99 125,000 Equitable Resources, Inc. 6,040,000 115 125,000 SCANA Corporation 5,396,250 103 110,000 Wisconsin Energy Corporation 5,337,200 102 - ------------------------------------------------------------------------------------------------------------------------- 29,839,330 569 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $377,692,510) 514,527,167 9,815 - ------------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE NOTES--1.8% General Electric Capital Corp.: $2,500M 5.22%, 4/5/07 2,498,185 48 2,600M 5.23%, 4/26/07 2,590,153 49 4,500M Prudential Funding Corp., 5.22%, 4/16/07 4,489,559 85 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Short-Term Corporate Notes (cost $9,577,897) 9,577,897 182 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $387,270,407) 100.0% 524,105,064 9,997 Other Assets, Less Liabilities .0 162,758 3 - ------------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $524,267,822 $10,000 ========================================================================================================================= * Non-income producing Summary of Abbreviations: ADR American Depositary Receipts REIT Real Estate Investment Trust See notes to financial statements Fund Expenses 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 4 for a detailed explanation of the information presented in these examples. Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/06) (3/31/07) (10/1/06-3/31/07)* - ------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,128.04 $7.75 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.65 $7.34 - ------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,124.53 $11.44 Hypothetical (5% annual return before expenses) $1,000.00 $1,014.16 $10.85 - ------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.46% for Class A shares and 2.16% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived. Portfolio Composition TOP TEN SECTORS (BAR CHART DATA:) Industrials 22.5% Information Technology 17.3% Consumer Discretionary 16.1% Financials 9.5% Consumer Staples 8.3% Health Care 6.1% Materials 5.6% Telecommunication Services 5.2% Utilities 4.9% Energy 2.6% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2007, and are based on the total market value of investments. Portfolio of Investments SPECIAL SITUATIONS FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--98.2% Consumer Discretionary--16.1% 137,600 Brunswick Corporation $4,382,560 $145 95,100 Catalina Marketing Corporation 3,003,258 100 140,300 Dillard's, Inc. - Class "A" 4,592,019 152 148,500 Jackson Hewitt Tax Service, Inc. 4,778,730 158 263,600 Journal Communications, Inc. 3,455,796 114 87,625 Media General, Inc. - Class "A" 3,343,770 111 165,900 * Payless ShoeSource, Inc. 5,507,880 182 171,600 * Rent-A-Center, Inc. 4,801,368 159 130,400 * Scholastic Corporation 4,055,440 134 220,100 Tempur-Pedic International, Inc. 5,720,399 189 592,300 * Visteon Corporation 5,058,242 167 - ------------------------------------------------------------------------------------------------------------------------- 48,699,462 1,611 - ------------------------------------------------------------------------------------------------------------------------- Consumer Staples--8.3% 106,550 Church & Dwight Company, Inc. 5,364,792 177 176,600 Flower Foods, Inc. 5,328,022 176 128,900 Hormel Foods Corporation 4,793,791 159 112,800 Lancaster Colony Corporation 4,984,632 165 153,319 Tootsie Roll Industries, Inc. 4,594,958 152 - ------------------------------------------------------------------------------------------------------------------------- 25,066,195 829 - ------------------------------------------------------------------------------------------------------------------------- Energy--2.6% 488,000 * Parker Drilling Company 4,582,320 152 82,500 * Whiting Petroleum Corporation 3,251,325 107 - ------------------------------------------------------------------------------------------------------------------------- 7,833,645 259 - ------------------------------------------------------------------------------------------------------------------------- Financials--9.5% 15,402 * Alleghany Corporation 5,754,187 191 168,900 Arthur J. Gallagher & Company 4,784,937 158 221,800 FirstMerit Corporation 4,682,198 155 137,500 Harleysville Group, Inc. 4,467,375 148 328,900 Phoenix Companies, Inc. 4,565,132 151 107,700 Wilmington Trust Corporation 4,541,709 150 - ------------------------------------------------------------------------------------------------------------------------- 28,795,538 953 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) SPECIAL SITUATIONS FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Health Care--6.1% 82,400 Hillenbrand Industries, Inc. $4,892,088 $162 126,900 * Lincare Holdings, Inc. 4,650,885 154 102,200 * Magellan Health Services, Inc. 4,292,400 142 98,200 West Pharmaceutical Services, Inc. 4,559,426 150 - ------------------------------------------------------------------------------------------------------------------------- 18,394,799 608 - ------------------------------------------------------------------------------------------------------------------------- Industrials--22.6% 120,000 Carlisle Companies, Inc. 5,151,600 171 184,900 CLARCOR, Inc. 5,879,820 195 140,200 Curtiss-Wright Corporation 5,403,308 179 159,400 Deluxe Corporation 5,344,682 177 108,300 HNI Corporation 4,974,219 165 114,900 John H. Harland Company 5,886,327 195 166,300 * Kansas City Southern, Inc. 5,916,954 196 290,800 * Labor Ready, Inc. 5,522,292 183 320,900 Mueller Water Products, Inc. - Class "B" 4,296,851 142 94,600 * NCI Building Systems, Inc. 4,516,204 149 152,600 Pentair, Inc. 4,755,016 157 86,700 United Industrial Corporation 4,785,840 158 137,600 Woodward Governor Company 5,664,992 188 - ------------------------------------------------------------------------------------------------------------------------- 68,098,105 2,255 - ------------------------------------------------------------------------------------------------------------------------- Information Technology--17.3% 160,850 * Avnet, Inc. 5,813,119 192 309,700 AVX Corporation 4,707,440 156 146,200 * Cabot Microelectronics Corporation 4,899,162 162 73,400 CDW Corporation 4,508,962 149 212,900 * Checkpoint Systems, Inc. 5,037,214 167 220,000 * Convergys Corporation 5,590,200 185 102,100 Imation Corporation 4,122,798 136 151,600 MoneyGram International, Inc. 4,208,416 139 92,800 * Rogers Corporation 4,115,680 136 269,400 * Tyler Technologies, Inc. 3,421,380 113 107,900 * Varian Semiconductor Equipment Associates, Inc. 5,759,702 191 - ------------------------------------------------------------------------------------------------------------------------- 52,184,073 1,726 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested Shares or For Each Principal $10,000 of Amount Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Materials--5.6% 79,700 AptarGroup, Inc. $5,334,321 $176 203,400 Commercial Metals Company 6,376,590 211 117,400 Eagle Materials, Inc. 5,239,562 173 - ------------------------------------------------------------------------------------------------------------------------- 16,950,473 560 - ------------------------------------------------------------------------------------------------------------------------- Telecommunication Services--5.2% 544,400 * Premiere Global Services, Inc. 6,108,168 202 107,775 Telephone & Data Systems, Inc. - Special Shares 6,024,623 199 184,700 USA Mobility, Inc. 3,681,071 122 - ------------------------------------------------------------------------------------------------------------------------- 15,813,862 523 - ------------------------------------------------------------------------------------------------------------------------- Utilities--4.9% 261,800 CMS Energy Corporation 4,660,040 154 640,400 * Dynegy, Inc. - Class "A" 5,930,104 196 176,800 Energy East Corporation 4,306,848 143 - ------------------------------------------------------------------------------------------------------------------------- 14,896,992 493 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $245,130,575) 296,733,144 9,817 - ------------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE NOTES--1.8% $5,500M Rabobank USA Financial Corp., 5.2%, 4/2/07 (cost $5,498,411) 5,498,411 182 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $250,628,986) 100.0% 302,231,555 9,999 Other Assets, Less Liabilities .0 35,322 1 - ------------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $302,266,877 $10,000 ========================================================================================================================= * Non-income producing See notes to financial statements Fund Expenses 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 4 for a detailed explanation of the information presented in these examples. Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/06) (3/31/07) (10/1/06-3/31/07)* - ------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,054.94 $8.71 Hypothetical (5% annual return before expenses) $1,000.00 $1,016.45 $8.55 - ------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,050.80 $12.27 Hypothetical (5% annual return before expenses) $1,000.00 $1,012.96 $12.04 - ------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.70% for Class A shares and 2.40% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Portfolio Composition TOP TEN SECTORS (BAR CHART DATA:) Information Technology 22.0% Financials 17.5% Health Care 15.3% Industrials 13.0% Energy 9.0% Consumer Staples 7.6% Consumer Discretionary 6.6% Utilities 3.8% Telecommunication Services 1.6% Materials 1.5% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2007, and are based on the total market value of investments. Portfolio of Investments FOCUSED EQUITY FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--97.8% Consumer Discretionary--6.5% 19,995 CBS Corporation - Class "B" $611,647 $122 13,300 Federated Department Stores, Inc. 599,165 119 38,700 Staples, Inc. 1,000,008 199 26,250 * Viacom, Inc. - Class "B" 1,079,138 215 - ------------------------------------------------------------------------------------------------------------------------- 3,289,958 655 - ------------------------------------------------------------------------------------------------------------------------- Consumer Staples--7.6% 11,000 Altria Group, Inc. 965,910 192 20,100 PepsiCo, Inc. 1,277,556 254 13,400 Procter & Gamble Company 846,344 169 15,630 Wal-Mart Stores, Inc. 733,829 146 - ------------------------------------------------------------------------------------------------------------------------- 3,823,639 761 - ------------------------------------------------------------------------------------------------------------------------- Energy--9.0% 22,225 ConocoPhillips 1,519,079 302 17,800 GlobalSantaFe Corporation 1,097,904 219 32,840 Halliburton Company 1,042,342 207 14,400 Noble Energy, Inc. 858,960 171 - ------------------------------------------------------------------------------------------------------------------------- 4,518,285 899 - ------------------------------------------------------------------------------------------------------------------------- Financials--17.5% 22,200 ACE, Ltd. 1,266,732 252 32,200 Bank of America Corporation 1,642,844 327 31,540 Citigroup, Inc. 1,619,264 322 13,700 Merrill Lynch & Company, Inc. 1,118,879 223 12,100 PNC Financial Services Group, Inc. 870,837 173 18,800 State Street Corporation 1,217,300 242 17,600 UBS AG 1,045,968 208 - ------------------------------------------------------------------------------------------------------------------------- 8,781,824 1,747 - ------------------------------------------------------------------------------------------------------------------------- Health Care--15.3% 13,500 Abbott Laboratories 753,300 150 7,000 * Amgen, Inc. 391,160 78 17,475 Eli Lilly & Company 938,582 187 12,100 * Genentech, Inc. 993,652 197 24,725 Medtronic, Inc. 1,213,009 241 42,920 Schering-Plough Corporation 1,094,889 218 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FOCUSED EQUITY FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Health Care (continued) 24,700 Teva Pharmaceutical Industries, Ltd. (ADR) $924,521 $184 16,900 * WellPoint, Inc. 1,370,590 273 - ------------------------------------------------------------------------------------------------------------------------- 7,679,703 1,528 - ------------------------------------------------------------------------------------------------------------------------- Industrials--13.0% 11,000 Boeing Company 978,010 195 12,600 Caterpillar, Inc. 844,578 168 8,700 Fluor Corporation 780,564 155 11,800 General Dynamics Corporation 901,520 179 45,200 General Electric Company 1,598,272 318 7,280 United Parcel Service, Inc. - Class "B" 510,328 102 14,200 United Technologies Corporation 923,000 184 - ------------------------------------------------------------------------------------------------------------------------- 6,536,272 1,301 - ------------------------------------------------------------------------------------------------------------------------- Information Technology--22.0% 30,200 Accenture, Ltd. - Class "A" 1,163,908 232 23,200 * Adobe Systems, Inc. 967,440 192 38,000 * Cisco Systems, Inc. 970,140 193 42,080 * Corning, Inc. 956,899 190 84,800 * EMC Corporation 1,174,480 234 2,215 * Google, Inc. - Class "A" 1,014,824 202 13,300 Hewlett-Packard Company 533,862 106 31,200 Maxim Integrated Products, Inc. 917,280 183 37,545 Microsoft Corporation 1,046,379 208 39,300 * Oracle Corporation 712,509 142 16,270 QUALCOMM, Inc. 694,078 138 6,500 * Research In Motion, Ltd. 887,185 177 - ------------------------------------------------------------------------------------------------------------------------- 11,038,984 2,197 - ------------------------------------------------------------------------------------------------------------------------- Materials--1.5% 20,600 Companhia Vale do Rio Doce (ADR) 761,994 152 - ------------------------------------------------------------------------------------------------------------------------- Telecommunication Services--1.6% 20,900 AT&T, Inc. 824,087 164 - ------------------------------------------------------------------------------------------------------------------------- Utilities--3.8% 19,500 American Electric Power Company, Inc. 950,625 189 10,890 Dominion Resources, Inc. 966,705 192 - ------------------------------------------------------------------------------------------------------------------------- 1,917,330 381 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $41,800,686) 49,172,076 9,785 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENT--1.9% $932M UBS Securities, 5.12%, dated 3/30/07, to be repurchased at $932,398 on 4/2/07 (collateralized by U.S. Treasury Bonds, 6.375%, 8/15/27, valued at $951,972) (cost $932,000) $932,000 $185 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $42,732,686) 99.7% 50,104,076 9,970 Other Assets, Less Liabilities .3 148,490 30 - ------------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $50,252,566 $10,000 ========================================================================================================================= * Non-income producing Summary of Abbreviations: ADR American Depositary Receipts See notes to financial statements Fund Expenses INTERNATIONAL 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 4 for a detailed explanation of the information presented in these examples. Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/06) (3/31/07) (10/1/06-3/31/07)* - ------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,118.15 $13.20 Hypothetical (5% annual return before expenses) $1,000.00 $1,012.46 $12.54 - ------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,113.59 $16.86 Hypothetical (5% annual return before expenses) $1,000.00 $1,008.97 $16.03 - ------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 2.50% for Class A shares and 3.20% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived. Portfolio Composition TOP TEN COUNTRIES United Kingdom 25.1% Switzerland 13.8% Spain 7.9% India 7.6% Australia 7.3% Ireland 6.6% Japan 6.4% Mexico 5.4% Belgium 4.4% France 2.7% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2007, and are based on the total market value of investments. Portfolio of Investments INTERNATIONAL FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--87.4% United Kingdom--23.3% 94,945 British American Tobacco PLC $2,959,059 $509 79,470 Diageo PLC 1,604,675 276 37,681 Imperial Tobacco Group PLC 1,681,363 290 58,465 Northern Rock PLC 1,312,983 226 22,845 Reckitt Benckiser PLC 1,185,601 204 45,600 Rolls-Royce Group PLC 442,048 76 34,196 Royal Bank of Scotland Group PLC 1,330,683 229 343,225 Tesco PLC 2,990,639 515 - ------------------------------------------------------------------------------------------------------------------------- 13,507,051 2,325 - ------------------------------------------------------------------------------------------------------------------------- Switzerland--12.5% 18,457 Kuehne & Nagel International AG--Registered 1,511,121 260 161 Lindt & Spruengli AG 420,436 72 3,875 Nestle SA--Registered 1,502,166 259 2,900 Novartis AG--Registered 165,572 28 29,200 Novartis AG (ADR) 1,595,196 275 11,850 Roche Holding AG--Genusscheine 2,086,951 359 - ------------------------------------------------------------------------------------------------------------------------- 7,281,442 1,253 - ------------------------------------------------------------------------------------------------------------------------- Spain--7.3% 109,050 Banco Bilbao Vizcaya Argentaria SA 2,668,076 459 35,075 Enagas 902,986 156 14,880 Red Electrica de Espana 698,611 120 - ------------------------------------------------------------------------------------------------------------------------- 4,269,673 735 - ------------------------------------------------------------------------------------------------------------------------- Australia--6.8% 63,478 Aristocrat Leisure, Ltd. 841,006 145 46,365 Australia & New Zealand Banking Group, Ltd. 1,112,445 191 53,547 Westfield Group 889,818 153 50,158 Woolworths, Ltd. 1,101,746 190 - ------------------------------------------------------------------------------------------------------------------------- 3,945,015 679 - ------------------------------------------------------------------------------------------------------------------------- Ireland--6.1% 24,020 Allied Irish Banks PLC 709,828 122 133,035 Anglo Irish Bank Corporation PLC 2,833,433 488 - ------------------------------------------------------------------------------------------------------------------------- 3,543,261 610 - ------------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) INTERNATIONAL FUND March 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Japan--5.9% 11,350 Daito Trust Construction Company, Ltd. $533,496 $92 39,650 Millea Holdings, Inc. 1,464,103 252 22,650 Toyota Motor Corporation 1,448,296 249 - ------------------------------------------------------------------------------------------------------------------------- 3,445,895 593 - ------------------------------------------------------------------------------------------------------------------------- Mexico--5.0% 93,533 America Movil SAB de CV - Series "L" 223,820 39 30,305 America Movil SAB de CV (ADR) - Series "L" 1,448,276 249 242,600 Grupo Modelo SA de CV - Series "C" 1,245,882 214 - ------------------------------------------------------------------------------------------------------------------------- 2,917,978 502 - ------------------------------------------------------------------------------------------------------------------------- Belgium--4.0% 3,675 Colruyt NV 838,045 144 20,875 InBev NV 1,501,928 259 - ------------------------------------------------------------------------------------------------------------------------- 2,339,973 403 - ------------------------------------------------------------------------------------------------------------------------- France--2.5% 16,350 M6 Metropole Television 596,777 103 12,350 Total SA 862,263 148 - ------------------------------------------------------------------------------------------------------------------------- 1,459,040 251 - ------------------------------------------------------------------------------------------------------------------------- Norway--2.4% 19,900 Orkla ASA 1,396,954 240 - ------------------------------------------------------------------------------------------------------------------------- Brazil--2.4% 20,235 Banco Itau Holding Financeira SA (ADR) 704,583 121 33,525 Souza Cruz SA 680,004 117 - ------------------------------------------------------------------------------------------------------------------------- 1,384,587 238 - ------------------------------------------------------------------------------------------------------------------------- India--2.1% 18,675 HDFC Bank, Ltd. (ADR) 1,203,604 207 - ------------------------------------------------------------------------------------------------------------------------- South Korea--2.0% 9,060 KT&G Corporation 592,377 102 14,135 S1 Corporation 568,045 98 - ------------------------------------------------------------------------------------------------------------------------- 1,160,422 200 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- Amount Invested Shares, For Each Warrants $10,000 of or Options Security Value Net Assets - ------------------------------------------------------------------------------------------------------------------------- Netherlands--2.0% 25,190 TNT NV $1,151,142 $198 - ------------------------------------------------------------------------------------------------------------------------- South Africa--1.7% 38,720 Remgro, Ltd. 966,332 166 - ------------------------------------------------------------------------------------------------------------------------- Taiwan--1.2% 65,245 Taiwan Semiconductor Manufacturing Company, Ltd. (ADR) 701,384 121 - ------------------------------------------------------------------------------------------------------------------------- Singapore--.2% 4,400 Jardine Matheson Holdings, Ltd. 92,840 16 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $46,242,530) 50,766,593 8,737 - ------------------------------------------------------------------------------------------------------------------------- WARRANTS--5.0% India 95,785 * Bharti Tele-Ventures, Ltd. (expiring 5/31/10) + 1,683,421 290 20,056 * HDFC Bank, Ltd. (expiring 6/28/10) + 440,269 76 22,200 * Housing Development Finance Corp. (expiring 5/25/09) + 776,534 133 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Warrants (cost $2,614,522) 2,900,224 499 - ------------------------------------------------------------------------------------------------------------------------- OPTIONS--.2% Switzerland 28 * Novartis AG--Registered (exercise price 50 CHF, expiring 12/18/09) 49,816 9 13 * Roche Holding AG--Genusscheine (exercise price 160 CHF, expiring 12/18/09) 69,494 12 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Options (cost $121,004) 119,310 21 - ------------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $48,978,056) 92.6% 53,786,127 9,257 Other Assets, Less Liabilities 7.4 4,315,261 743 - ------------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $58,101,388 $10,000 ========================================================================================================================= * Non-income producing + Securities valued at Fair Value (see Note 1A) Summary of Abbreviations: ADR American Depositary Receipts See notes to financial statements Portfolio of Investments (continued) INTERNATIONAL FUND March 31, 2007 Sector diversification of the portfolio was as follows: - --------------------------------------------------------------------------------------------------------------- Percentage Sector of Net Assets Value - --------------------------------------------------------------------------------------------------------------- Banks 21.2% $12,315,904 Food, Beverage & Tobacco 21.0 12,187,890 Food & Staples Retailing 8.5 4,930,430 Pharmaceuticals, Biotechnology & Life Sciences 6.8 3,967,029 Telecommunication Services 5.8 3,355,517 Transportation 4.6 2,662,263 Capital Goods 3.2 1,839,002 Diversified Financials 3.2 1,835,706 Utilities 2.8 1,601,597 Insurance 2.5 1,464,103 Automobiles & Components 2.5 1,448,296 Household & Personal Products 2.0 1,185,601 Real Estate 1.5 889,818 Energy 1.5 862,263 Consumer Services 1.4 841,006 Semiconductors & Semiconductor Equipment 1.2 701,384 Media 1.0 596,777 Commercial Services & Supply 1.0 568,045 Consumer Durables & Apparel .9 533,496 - --------------------------------------------------------------------------------------------------------------- Total Value of Investments 92.6 53,786,127 Other Assets, Less Liabilities 7.4 4,315,261 - --------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $58,101,388 =============================================================================================================== See notes to financial statements This page intentionally left blank. Statements of Assets and Liabilities FIRST INVESTORS EQUITY FUNDS March 31, 2007 - --------------------------------------------------------------------------------------------------------------------------- TOTAL GROWTH & SELECT RETURN VALUE BLUE CHIP INCOME GROWTH - --------------------------------------------------------------------------------------------------------------------------- Assets Investments in securities: At identified cost $318,426,914 $312,162,042 $341,453,941 $617,687,675 $197,242,439 ============== ============== ============== ============== ============== At value (Note 1A) $375,737,599 $414,538,508 $495,350,266 $826,271,345 $227,726,673 Cash 336,240 291,186 273,259 651,650 100,523 Receivables: Investment securities sold 463,438 -- -- 1,733,150 1,472,152 Dividends and interest 1,585,960 660,282 616,712 721,240 172,704 Shares sold 557,882 1,241,610 645,768 1,647,522 401,047 Other assets 45,344 47,017 62,186 95,648 29,555 -------------- -------------- -------------- -------------- -------------- Total Assets 378,726,463 416,778,603 496,948,191 831,120,555 229,902,654 -------------- -------------- -------------- -------------- -------------- Liabilities Payables: Investment securities purchased 5,627,958 703,866 -- 3,155,851 2,052,221 Shares redeemed 703,012 758,714 959,434 2,033,065 511,480 Dividends payable 24,291 18,874 5,973 5,216 -- Accrued advisory fees 225,424 249,307 298,728 478,409 138,860 Accrued shareholder servicing costs 93,734 98,988 151,023 204,429 71,604 Accrued expenses 35,668 19,298 23,582 26,769 10,709 -------------- -------------- -------------- -------------- -------------- Total Liabilities 6,710,087 1,849,047 1,438,740 5,903,739 2,784,874 -------------- -------------- -------------- -------------- -------------- Net Assets $372,016,376 $414,929,556 $495,509,451 $825,216,816 $227,117,780 ============== ============== ============== ============== ============== Net Assets Consist of: Capital paid in $311,915,542 $344,616,060 $434,482,631 $615,139,587 $193,345,722 Undistributed net investment income (loss) 879,761 1,084,143 849,348 1,089,967 (676,912) Accumulated net realized gain (loss) on investments 1,910,388 (33,147,113) (93,718,853) 403,592 3,964,736 Net unrealized appreciation in value of investments 57,310,685 102,376,466 153,896,325 208,583,670 30,484,234 -------------- -------------- -------------- -------------- -------------- Total $372,016,376 $414,929,556 $495,509,451 $825,216,816 $227,117,780 ============== ============== ============== ============== ============== Net Assets: Class A $335,772,726 $386,186,050 $453,678,674 $754,134,394 $203,861,537 Class B $36,243,650 $28,743,506 $41,830,777 $71,082,422 $23,256,243 Shares outstanding (Note 5): Class A 21,761,299 48,328,593 19,199,874 46,958,570 22,547,142 Class B 2,384,252 3,654,444 1,899,077 4,658,679 2,699,524 Net asset value and redemption price per share - Class A $15.43 $7.99 $23.63 $16.06 $9.04 ============== ============== ============== ============== ============== Maximum offering price per share - Class A (Net asset value/.9425)* $16.37 $8.48 $25.07 $17.04 $9.59 ============== ============== ============== ============== ============== Net asset value and offering price per share - Class B (Note 5) $15.20 $7.87 $22.03 $15.26 $8.61 ============== ============== ============== ============== ============== * On purchases of $100,000 or more, the sales charge is reduced. See notes to financial statements Statements of Assets and Liabilities FIRST INVESTORS EQUITY FUNDS March 31, 2007 - --------------------------------------------------------------------------------------------------------------------------- MID-CAP SPECIAL FOCUSED GLOBAL OPPORTUNITY SITUATIONS EQUITY INTERNATIONAL - ---------------------------------------------------------------------------------------------------------------------------- Assets Investments in securities: At identified cost $253,430,143 $387,270,407 $250,628,986 $42,732,686 $48,978,056 ============== ============== ============== ============== ============== At value (Note 1A) $295,785,207 $524,105,064 $302,231,555 $50,104,076 $53,786,127 Cash 60,009 406,915 115,230 102,423 3,418,573 Receivables: Investment securities sold 2,037,529 1,745,706 -- 282,993 245,324 Dividends and interest 536,482 369,385 103,916 60,278 228,433 Shares sold 325,616 712,257 771,491 116,949 940,018 Forward currency contracts (Note 4) 998 -- -- -- -- Other assets 56,186 62,956 35,291 7,303 2,742 -------------- -------------- -------------- -------------- -------------- Total Assets 298,802,027 527,402,283 303,257,483 50,674,022 58,621,217 -------------- -------------- -------------- -------------- -------------- Liabilities Payables: Investment securities purchased 1,149,590 1,374,414 -- 151,744 105,640 Shares redeemed 561,578 1,257,922 697,121 203,245 64,096 Foreign exchange contracts (Note 4) -- -- -- -- 235,468 Accrued advisory fees 234,724 311,680 183,665 30,837 56,852 Accrued shareholder servicing costs 102,393 156,099 93,267 24,602 34,516 Accrued expenses 48,739 34,346 16,553 11,028 23,257 -------------- -------------- -------------- -------------- -------------- Total Liabilities 2,097,024 3,134,461 990,606 421,456 519,829 -------------- -------------- -------------- -------------- -------------- Net Assets $296,705,003 $524,267,822 $302,266,877 $50,252,566 $58,101,388 ============== ============== ============== ============== ============== Net Assets Consist of: Capital paid in $235,242,435 $359,106,309 $246,452,551 $62,837,669 $54,014,674 Undistributed net investment income (loss) (2,629,148) 1,230,802 (449,037) (41,054) (279,788) Accumulated net realized gain (loss) on investments and foreign currency transactions 21,728,086 27,096,054 4,660,794 (19,915,439) (210,014) Net unrealized appreciation in value of investments and foreign currency transactions 42,363,630 136,834,657 51,602,569 7,371,390 4,576,516 -------------- -------------- -------------- -------------- -------------- Total $296,705,003 $524,267,822 $302,266,877 $50,252,566 $58,101,388 ============== ============== ============== ============== ============== Net Assets: Class A $282,992,652 $471,675,444 $283,753,741 $43,392,065 $55,353,434 Class B $13,712,351 $52,592,378 $18,513,136 $6,860,501 $2,747,954 Shares outstanding (Note 5): Class A 36,738,787 15,550,728 12,051,807 4,520,353 4,653,216 Class B 1,961,885 1,912,024 874,963 753,953 232,168 Net asset value and redemption price per share - Class A $7.70 $30.33 $23.54 $9.60 $11.90 ============== ============== ============== ============== ============== Maximum offering price per share - Class A (Net asset value/.9425)* $8.17 $32.18 $24.98 $10.19 $12.63 ============== ============== ============== ============== ============== Net asset value and offering price per share - Class B (Note 5) $6.99 $27.51 $21.16 $9.10 $11.84 ============== ============== ============== ============== ============== * On purchases of $100,000 or more, the sales charge is reduced. See notes to financial statements Statements of Operations FIRST INVESTORS EQUITY FUNDS Six Months Ended March 31, 2007 - ---------------------------------------------------------------------------------------------------------------------------- TOTAL GROWTH & SELECT RETURN VALUE BLUE CHIP INCOME GROWTH - ---------------------------------------------------------------------------------------------------------------------------- Investment Income Dividends $2,250,584(a) $4,389,913(b) $4,881,211(c) $8,079,236(d) $868,800(e) Interest 4,016,126 886,816 142,334 21,268 207,183 -------------- -------------- -------------- -------------- --------------- Total income 6,266,710 5,276,729 5,023,545 8,100,504 1,075,983 -------------- -------------- -------------- -------------- --------------- Expenses (Notes 1 and 3): Advisory fees 1,351,537 1,469,906 1,837,774 2,856,969 854,117 Distribution plan expenses - Class A 489,916 550,729 681,285 1,084,134 305,893 Distribution plan expenses - Class B 181,754 143,445 219,903 363,703 119,181 Shareholder servicing costs 403,182 458,881 713,245 1,008,888 394,441 Professional fees 23,788 23,888 44,759 37,861 7,300 Custodian fees 21,004 13,116 16,141 25,611 6,926 Registration fees 38,571 29,740 31,766 35,830 21,038 Reports to shareholders 17,133 19,083 35,755 39,290 17,857 Trustees' fees 8,357 9,057 11,404 18,163 5,223 Other expenses 38,541 36,410 49,936 69,716 23,726 -------------- -------------- -------------- -------------- --------------- Total expenses 2,573,783 2,754,255 3,641,968 5,540,165 1,755,702 Less: Expenses paid indirectly (10,744) (14,191) (13,984) (6,020) (2,807) -------------- -------------- -------------- -------------- --------------- Net expenses 2,563,039 2,740,064 3,627,984 5,534,145 1,752,895 -------------- -------------- -------------- -------------- --------------- Net investment income (loss) 3,703,671 2,536,665 1,395,561 2,566,359 (676,912) -------------- -------------- -------------- -------------- --------------- Realized and Unrealized Gain (Loss) on Investments (Note 2): Net realized gain on investments 6,272,180 2,334,438 5,753,317 14,546,280 5,189,684 Net unrealized appreciation of investments 16,407,589 27,120,793 19,338,551 64,978,949 8,688,115 -------------- -------------- -------------- -------------- --------------- Net gain on investments 22,679,769 29,455,231 25,091,868 79,525,229 13,877,799 -------------- -------------- -------------- -------------- --------------- Net Increase in Net Assets Resulting from Operations $26,383,440 $31,991,896 $26,487,429 $82,091,588 $13,200,887 ============== ============== ============== ============== =============== (a) Net of $844 foreign taxes withheld (b) Net of $15,779 foreign taxes withheld (c) Net of $14,824 foreign taxes withheld (d) Net of $3,103 foreign taxes withheld (e) Net of $5,386 foreign taxes withheld See notes to financial statements Statements of Operations FIRST INVESTORS EQUITY FUNDS Six Months Ended March 31, 2007 - --------------------------------------------------------------------------------------------------------------------------- MID-CAP SPECIAL FOCUSED GLOBAL OPPORTUNITY SITUATIONS EQUITY INTERNATIONAL - --------------------------------------------------------------------------------------------------------------------------- Investment Income Dividends $1,570,058(f) $4,773,801(g) $1,504,388 $402,750(h) $423,993(i) Interest 165,742 210,852 216,682 23,680 79,876 -------------- -------------- -------------- -------------- -------------- Total income 1,735,800 4,984,653 1,721,070 426,430 503,869 -------------- -------------- -------------- -------------- -------------- Expenses (Notes 1 and 3): Advisory fees 1,417,503 1,881,406 1,335,577 195,233 186,183 Distribution plan expenses - Class A 413,131 686,965 406,452 66,993 54,062 Distribution plan expenses - Class B 69,362 263,658 93,509 36,999 9,735 Shareholder servicing costs 436,426 755,418 486,847 120,600 159,769 Professional fees 50,835 27,215 20,157 7,610 14,282 Custodian fees 91,451 23,913 11,846 3,709 43,769 Registration fees 20,242 34,821 20,100 22,722 59,604 Reports to shareholders 16,845 27,720 19,117 5,373 8,465 Trustees' fees 6,931 11,652 6,571 1,197 871 Other expenses 43,347 55,199 25,575 7,490 2,740 -------------- -------------- -------------- -------------- -------------- Total expenses 2,566,073 3,767,967 2,425,751 467,926 539,480 -------------- -------------- -------------- -------------- -------------- Less: Expenses waived -- -- (249,315) -- (58,815) Expenses paid indirectly (700) (14,116) (6,329) (442) (112) -------------- -------------- -------------- -------------- -------------- Net expenses 2,565,373 3,753,851 2,170,107 467,484 480,553 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (829,573) 1,230,802 (449,037) (41,054) 23,316 -------------- -------------- -------------- -------------- -------------- Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions (Note 2): Net realized gain (loss) on: Investments 27,757,892 32,815,933 18,484,307 1,566,316 (175,648) Foreign currency transactions (20,551) -- -- -- (29,719) -------------- -------------- -------------- -------------- -------------- Net realized gain (loss) on investments and foreign currency transactions 27,737,341 32,815,933 18,484,307 1,566,316 (205,367) -------------- -------------- -------------- -------------- -------------- Net unrealized appreciation (depreciation) of: Investments 1,325,851 27,305,947 16,162,313 1,242,835 4,082,323 Foreign currency transactions 3,531 -- -- -- (317,496) -------------- -------------- -------------- -------------- -------------- Net unrealized appreciation of investments and foreign currency transactions 1,329,382 27,305,947 16,162,313 1,242,835 3,764,827 -------------- -------------- -------------- -------------- -------------- Net gain on investments and foreign currency transactions 29,066,723 60,121,880 34,646,620 2,809,151 3,559,460 -------------- -------------- -------------- -------------- -------------- Net Increase in Net Assets Resulting from Operations $28,237,150 $61,352,682 $34,197,583 $2,768,097 $3,582,776 ============== ============== ============== ============== ============== (f) Net of $76,407 foreign taxes withheld (g) Net of $16,760 foreign taxes withheld (h) Net of $597 foreign taxes withheld (i) Net of $52,713 foreign taxes withheld See notes to financial statements Statements of Changes in Net Assets FIRST INVESTORS EQUITY FUNDS - ---------------------------------------------------------------------------------------------------------------------- TOTAL RETURN VALUE ---------------------------------- ---------------------------------- 10/1/06 to 10/1/05 to 10/1/06 to 10/1/05 to 3/31/07 9/30/06 3/31/07 9/30/06 - ---------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment income $3,703,671 $5,140,567 $2,536,665 $4,020,796 Net realized gain on investments 6,272,180 9,374,460 2,334,438 13,345,405 Net unrealized appreciation of investments 16,407,589 5,379,510 27,120,793 23,282,192 ---------------- ---------------- ---------------- ---------------- Net increase in net assets resulting from operations 26,383,440 19,894,537 31,991,896 40,648,393 ---------------- ---------------- ---------------- ---------------- Distributions to Shareholders Net investment income - Class A (3,125,088) (4,717,963) (2,375,699) (3,480,451 Net investment income - Class B (220,740) (329,562) (82,596) (127,641) Net realized gains - Class A (2,189,339) -- -- -- Net realized gains - Class B (248,050) -- -- -- ---------------- ---------------- ---------------- ---------------- Total distributions (5,783,217) (5,047,525) (2,458,295) (3,608,092) ---------------- ---------------- ---------------- ---------------- Share Transactions * Class A: Proceeds from shares sold 27,040,779 61,431,640 49,197,431 75,863,544 Reinvestment of distributions 5,248,427 4,647,596 2,339,014 3,419,946 Cost of shares redeemed (27,011,591) (48,555,127) (29,870,701) (43,351,991) ---------------- ---------------- ---------------- ---------------- 5,277,615 17,524,109 21,665,744 35,931,499 ---------------- ---------------- ---------------- ---------------- Class B: Proceeds from shares sold 1,619,722 4,213,768 2,034,486 4,874,190 Reinvestment of distributions 466,673 327,500 81,805 126,427 Cost of shares redeemed (3,795,834) (8,153,743) (3,575,329) (7,056,112) ---------------- ---------------- ---------------- ---------------- (1,709,439) (3,612,475) (1,459,038) (2,055,495) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) from share transactions 3,568,176 13,911,634 20,206,706 33,876,004 ---------------- ---------------- ---------------- ---------------- Net increase in net assets 24,168,399 28,758,646 49,740,307 70,916,305 Net Assets Beginning of period 347,847,977 319,089,331 365,189,249 294,272,944 ---------------- ---------------- ---------------- ---------------- End of period+ $372,016,376 $347,847,977 $414,929,556 $365,189,249 ================ ================ ================ ================ +Includes undistributed net investment income of $879,761 $521,918 $1,084,143 $1,005,773 ================ ================ ================ ================ *Shares Issued and Redeemed Class A: Sold 1,776,969 4,294,534 6,257,931 10,879,798 Issued for distributions reinvested 343,665 323,247 294,204 483,325 Redeemed (1,773,740) (3,397,469) (3,790,984) (6,213,962) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in Class A shares outstanding 346,894 1,220,312 2,761,151 5,149,161 ================ ================ ================ ================ Class B: Sold 107,939 299,997 263,030 712,632 Issued for distributions reinvested 31,038 23,118 10,449 18,191 Redeemed (253,650) (579,661) (464,177) (1,026,380) ---------------- ---------------- ---------------- ---------------- Net decrease in Class B shares outstanding (114,673) (256,546) (190,698) (295,557) ================ ================ ================ ================ Statements of Changes in Net Assets (continued) FIRST INVESTORS EQUITY FUNDS - ---------------------------------------------------------------------------------------------------------------------- BLUE CHIP GROWTH & INCOME ---------------------------------- ---------------------------------- 10/1/06 to 10/1/05 to 10/1/06 to 10/1/06 to 3/31/07 9/30/06 3/31/07 9/30/06 - ---------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment income $1,395,561 $1,901,453 $2,566,359 $1,951,361 Net realized gain on investments 5,753,317 13,151,335 14,546,280 29,207,344 Net unrealized appreciation of investments 19,338,551 26,847,027 64,978,949 23,026,678 ---------------- ---------------- ---------------- ---------------- Net increase in net assets resulting from operations 26,487,429 41,899,815 82,091,588 54,185,383 ---------------- ---------------- ---------------- ---------------- Distributions to Shareholders Net investment income - Class A (1,155,637) (1,292,468) (1,968,235) (2,247,490) Net investment income - Class B -- -- (20,138) -- Net realized gains - Class A -- -- (10,825,654) -- Net realized gains - Class B -- -- (1,163,363) -- ---------------- ---------------- ---------------- ---------------- Total distributions (1,155,637) (1,292,468) (13,977,390) (2,247,490) ---------------- ---------------- ---------------- ---------------- Share Transactions * Class A: Proceeds from shares sold 29,741,017 55,709,500 64,579,408 126,552,654 Reinvestment of distributions 1,144,325 1,281,752 12,705,774 2,226,784 Cost of shares redeemed (37,879,209) (77,002,217) (56,469,168) (100,395,457) ---------------- ---------------- ---------------- ---------------- (6,993,867) (20,010,965) 20,816,014 28,383,981 ---------------- ---------------- ---------------- ---------------- Class B: Proceeds from shares sold 1,582,191 4,440,225 3,403,578 9,940,937 Reinvestment of distributions -- -- 1,180,077 -- Cost of shares redeemed (6,476,759) (16,026,612) (11,652,378) (25,190,976) ---------------- ---------------- ---------------- ---------------- (4,894,568) (11,586,387) (7,068,723) (15,250,039) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) from share transactions (11,888,435) (31,597,352) 13,747,291 13,133,942 ---------------- ---------------- ---------------- ---------------- Net increase in net assets 13,443,357 9,009,995 81,861,489 65,071,835 Net Assets Beginning of period 482,066,094 473,056,099 743,355,327 678,283,492 ---------------- ---------------- ---------------- ---------------- End of period+ $495,509,451 $482,066,094 $825,216,816 $743,355,327 ================ ================ ================ ================ +Includes undistributed net investment income of $849,348 $609,424 $1,089,967 $511,981 ================ ================ ================ ================ *Shares Issued and Redeemed Class A: Sold 1,265,305 2,606,479 4,125,720 8,823,823 Issued for distributions reinvested 48,253 59,127 812,939 153,919 Redeemed (1,608,475) (3,601,132) (3,602,236) (7,005,475) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in Class A shares outstanding (294,917) (935,526) 1,336,423 1,972,267 ================ ================ ================ ================ Class B: Sold 72,272 222,526 228,824 725,027 Issued for distributions reinvested -- -- 79,575 -- Redeemed (296,370) (800,563) (786,440) (1,837,472) ---------------- ---------------- ---------------- ---------------- Net decrease in Class B shares outstanding (224,098) (578,037) (478,041) (1,112,445) ================ ================ ================ ================ See notes to financial statements Statements of Changes in Net Assets FIRST INVESTORS EQUITY FUNDS - ---------------------------------------------------------------------------------------------------------------------- SELECT GROWTH GLOBAL ---------------------------------- ---------------------------------- 10/1/06 to 10/1/05 to 10/1/06 to 10/1/05 to 3/31/07 9/30/06 3/31/07 9/30/06 - ---------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment income (loss) $(676,912) $(1,537,185) $(829,573) $268,295 Net realized gain on investments and foreign currency transactions 5,189,684 21,955,545 27,737,341 26,596,850 Net unrealized appreciation (depreciation) of investments and foreign currency transactions 8,688,115 (11,082,663) 1,329,382 (1,448,505) ---------------- ---------------- ---------------- ---------------- Net increase in net assets resulting from operations 13,200,887 9,335,697 28,237,150 25,416,640 ---------------- ---------------- ---------------- ---------------- Distributions to Shareholders Net investment income - Class A -- -- (1,703,811) (511,516) Net investment income - Class B -- -- (95,764) -- Net realized gains - Class A (16,002,768) -- (25,963,153) -- Net realized gains - Class B (1,981,350) -- (1,455,638) -- ---------------- ---------------- ---------------- ---------------- Total distributions (17,984,118) -- (29,218,366) (511,516) ---------------- ---------------- ---------------- ---------------- Share Transactions * Class A: Proceeds from shares sold 16,969,279 48,443,378 14,957,955 32,079,774 Reinvestment of distributions 15,949,659 -- 27,199,554 455,744 Cost of shares redeemed (20,347,842) (30,853,902) (18,775,398) (34,415,861) ---------------- ---------------- ---------------- ---------------- 12,571,096 17,589,476 23,382,111 (1,880,343) ---------------- ---------------- ---------------- ---------------- Class B: Proceeds from shares sold 891,209 4,128,019 763,075 -- Reinvestment of distributions 1,970,727 -- 1,549,112 2,181,431 Cost of shares redeemed (2,310,832) (5,146,160) (1,962,746) (4,344,498) ---------------- ---------------- ---------------- ---------------- 551,104 (1,018,141) 349,441 (2,163,067) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) from share transactions 13,122,200 16,571,335 23,731,552 (4,043,410) ---------------- ---------------- ---------------- ---------------- Net increase in net assets 8,338,969 25,907,032 22,750,336 20,861,714 Net Assets Beginning of period 218,778,811 192,871,779 273,954,667 253,092,953 ---------------- ---------------- ---------------- ---------------- End of period+ $227,117,780 $218,778,811 $296,705,003 $273,954,667 ================ ================ ================ ================ +Includes undistributed net investment income (deficit) of $(676,912) $-- $(2,629,148) $-- ================ ================ ================ ================ *Shares Issued and Redeemed Class A Sold 1,866,395 5,226,164 1,957,747 4,311,883 Issued for distributions reinvested 1,822,725 -- 3,693,256 3,740 Redeemed (2,234,262) (3,347,110) (2,454,664) 4,642,293) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in Class A shares outstanding 1,454,858 1,879,054 3,196,339 (266,670) ================ ================ ================ ================ Class B: Sold 102,358 461,478 109,679 318,906 Issued for distributions reinvested 235,478 -- 230,957 -- Redeemed (266,483) (578,815) (283,693) (633,693) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in Class B shares outstanding 71,353 (117,337) 56,943 (314,787) ================ ================ ================ ================ Statements of Changes in Net Assets (continued) FIRST INVESTORS EQUITY FUNDS - ---------------------------------------------------------------------------------------------------------------------- MID-CAP OPPORTUNITY SPECIAL SITUATIONS ---------------------------------- ---------------------------------- 10/1/06 to 10/1/05 to 10/1/06 to 10/1/05 to 3/31/07 9/30/06 3/31/07 9/30/06 - ---------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment income (loss) $1,230,802 $(1,951,907) $(449,037) $(1,388,380) Net realized gain on investments and foreign currency transactions 32,815,933 17,445,399 18,484,307 16,672,396 Net unrealized appreciation (depreciation) of investments and foreign currency transactions 27,305,947 (4,037,732) 16,162,313 10,315,175 ---------------- ---------------- ---------------- ---------------- Net increase in net assets resulting from operations 61,352,682 11,455,760 34,197,583 25,599,191 ---------------- ---------------- ---------------- ---------------- Distributions to Shareholders Net investment income - Class A -- -- -- -- Net investment income - Class B -- -- -- -- Net realized gains - Class A (20,488,349) (11,436,474) (21,193,345) -- Net realized gains - Class B (2,618,555) (1,696,534) (1,645,023) -- ---------------- ---------------- ---------------- ---------------- Total distributions (23,106,904) (13,133,008) (22,838,368) -- ---------------- ---------------- ---------------- ---------------- Share Transactions * Class A: Proceeds from shares sold 29,350,315 87,073,595 23,739,411 37,576,661 Reinvestment of distributions 20,403,976 11,364,891 21,100,036 -- Cost of shares redeemed (47,635,608) (72,718,404) (20,835,229) (35,967,977) ---------------- ---------------- ---------------- ---------------- 2,118,683 25,720,082 24,004,218 1,608,684 ---------------- ---------------- ---------------- ---------------- Class B: Proceeds from shares sold 2,049,349 8,879,710 862,957 2,561,815 Reinvestment of distributions 2,609,026 1,688,114 1,642,521 -- Cost of shares redeemed (6,548,049) (16,113,816) (2,716,284) (7,038,485) ---------------- ---------------- ---------------- ---------------- (1,889,674) (5,545,992) (210,806) (4,476,670) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) from share transactions 229,009 20,174,090 23,793,412 (2,867,986) ---------------- ---------------- ---------------- ---------------- Net increase in net assets 38,474,787 18,496,842 35,152,627 22,731,205 Net Assets Beginning of period 485,793,035 467,296,193 267,114,250 244,383,045 ---------------- ---------------- ---------------- ---------------- End of period+ $524,267,822 $485,793,035 $302,266,877 $267,114,250 ================ ================ ================ ================ +Includes undistributed net investment income (deficit) of $1,230,802 $-- $(449,037) $-- ================ ================ ================ ================ *Shares Issued and Redeemed Class A: Sold 999,839 3,078,938 1,017,031 1,736,840 Issued for distributions reinvested 721,695 429,026 923,327 -- Redeemed (1,624,792) (2,581,308) (892,491) (1,672,171) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in Class A shares outstanding 96,742 926,656 1,047,867 64,669 ================ ================ ================ ================ Class B: Sold 76,927 341,525 40,933 129,614 Issued for distributions reinvested 101,413 69,270 79,633 -- Redeemed (245,376) (621,241) (129,557) (357,334) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in Class B shares outstanding (67,036) (210,446) (8,991) (227,720) ================ ================ ================ ================ See notes to financial statements Statements of Changes in Net Assets FIRST INVESTORS EQUITY FUNDS - ---------------------------------------------------------------------------------------------------------------------- FOCUSED EQUITY INTERNATIONAL ---------------------------------- ---------------------------------- 10/1/06 to 10/1/05 to 10/1/06 to 6/27/06** to 3/31/07 9/30/06 3/31/07 9/30/06 - ---------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment income (loss) $(41,054) $(161,614) $23,316 $3,583 Net realized gain (loss) on investments and foreign currency transactions 1,566,316 2,552,254 (205,367) (108,954) Net unrealized appreciation of investments and foreign currency transactions 1,242,835 90,291 3,764,827 811,689 ---------------- ---------------- ---------------- ---------------- Net increase in net assets resulting from operations 2,768,097 2,480,931 3,582,776 706,318 ---------------- ---------------- ---------------- ---------------- Dividends to Shareholders Net investment income - Class A -- (56,977) (191,657) -- Net investment income - Class B -- -- (10,723) -- ---------------- ---------------- ---------------- ---------------- Total dividends -- (56,977) (202,380) -- ---------------- ---------------- ---------------- ---------------- Share Transactions * Class A: Proceeds from shares sold 1,986,083 4,647,327 33,893,192 18,783,707 Reinvestment of dividends -- 56,668 191,287 -- Cost of shares redeemed (5,496,391) (10,351,825) (1,177,655) (233,440) ---------------- ---------------- ---------------- ---------------- (3,510,308) (5,647,830) 32,906,824 18,550,267 ---------------- ---------------- ---------------- ---------------- Class B: Proceeds from shares sold 150,291 739,696 1,691,760 1,041,875 Reinvestment of dividends -- -- 10,605 -- Cost of shares redeemed (1,298,285) (2,783,896) (154,702) (31,955) ---------------- ---------------- ---------------- ---------------- (1,147,994) (2,044,200) 1,547,663 1,009,920 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) from share transactions (4,658,302) (7,692,030) 34,454,487 19,560,187 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets (1,890,205) (5,268,076) 37,834,883 20,266,505 Net Assets Beginning of period 52,142,771 57,410,847 20,266,505 -- ---------------- ---------------- ---------------- ---------------- End of period+ $50,252,566 $52,142,771 $58,101,388 $20,266,505 ================ ================ ================ ================ +Includes undistributed net investment deficit of $(41,054) $-- $(279,788) $(100,724) ================ ================ ================ ================ *Shares Issued and Redeemed Class A: Sold 209,551 523,377 2,941,621 1,817,728 Reinvestment of dividends -- 6,447 16,831 -- Redeemed (577,473) (1,164,907) (100,723) (22,242) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in Class A shares outstanding (367,922) (635,083) 2,857,729 1,795,486 ================ ================ ================ ================ Class B: Sold 16,686 87,598 147,915 99,686 Reinvestment of dividends -- -- 937 -- Redeemed (144,858) (328,649) (13,334) (3,037) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in Class B shares outstanding (128,172) (241,051) 135,518 96,649 ================ ================ ================ ================ ** Commencement of operations See notes to financial statements Notes to Financial Statements FIRST INVESTORS EQUITY FUNDS March 31, 2007 1. Significant Accounting Policies--First Investors Equity Funds, a Delaware statutory trust ("the Trust"), is registered under the Investment Company Act of 1940 ("the 1940 Act") as a diversified, open-end management investment company. The Trust operates as a series fund, issuing shares of beneficial interest in the Total Return Fund, Value Fund, Blue Chip Fund, Growth & Income Fund, Select Growth Fund (formerly All-Cap Growth Fund), Global Fund, Mid-Cap Opportunity Fund, Special Situations Fund, Focused Equity Fund and International Fund (each a "Fund," collectively, "the Funds"), and accounts separately for the assets, liabilities and operations of each Fund. Focused Equity Fund is registered as a non-diversified series of the Trust. 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. Growth & Income Fund seeks long-term growth of capital and current income. Select Growth Fund seeks long-term growth of capital. Global Fund primarily seeks long-term capital growth and secondarily a reasonable level of current income. Mid-Cap Opportunity Fund seeks long-term capital growth. Special Situations Fund seeks long-term growth of capital. Focused Equity Fund seeks capital appreciation. International Fund primarily seeks long-term capital growth. 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 on quotes furnished by a market maker for such securities. Securities may also be priced by a pricing service approved by the Trust's Board of 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. The Funds also rely on a pricing service in circumstances where the U.S. securities markets exceed a predetermined threshold to value foreign securities held in the Funds' portfolios. The pricing service, its methodology or the threshold may change from time to time. 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 and issuer-specific developments. 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. The Board has also approved the Funds use of a pricing service to fair value foreign securities in the event of a significant fluctuation in U.S. securities markets. 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. At March 31, 2007, the Select Growth Fund held one security that was fair valued by its Valuation Committee with a value of $407,968 representing .2% of the Fund's net assets, and the International Fund held three securities that were fair valued by its Valuation Committee with an aggregate value of $2,900,224 representing 5.0% of the Fund's net assets. B. Federal Income Taxes--No provision has been made for federal income taxes on net income or capital gains since it is the policy of each Fund to continue to comply with the special provisions of the Internal Revenue Code applicable to investment companies and to make sufficient distributions of income and capital gains (in excess of any available capital loss carryovers) to relieve it from all, or substantially all, such taxes. At September 30, 2006, capital loss carryovers were as follows: Year Capital Loss Carryovers Expire ------------------------------------------------------------------- Fund Total 2009 2010 2011 2012 - ---- ----- ---- ---- ---- ---- Total Return $ 191,963 $ -- $ -- $ 191,963 $ -- Value 35,462,447 -- -- 35,462,447 -- Blue Chip 91,192,794 -- 22,005,255 69,187,539 -- Focused Equity 21,406,905 8,392,235 1,712,582 9,856,986 1,445,102 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 Select Notes to Financial Statements (continued) FIRST INVESTORS EQUITY FUNDS March 31, 2007 Growth Fund, Global Fund, Mid-Cap Opportunity Fund, Special Situations Fund, Focused Equity Fund, and International 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 the Trust are allocated among and charged to the assets of each Fund on a fair and equitable basis, which may be based on the relative assets of each Fund or the nature of the services performed and relative applicability to each Fund. E. Repurchase Agreements--Securities pledged as collateral for repurchase agreements entered into by the Select Growth Fund, Global Fund and Focused Equity 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 and International 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 and International Fund do 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 prices of the investments. These changes are included with the net realized and unrealized gains and losses from investments. Net realized and unrealized gains and losses on foreign currency transactions include gains and losses from the sales of foreign currency and gains and losses on accrued foreign dividends and related withholding taxes. H. Other--Security transactions are accounted for on the date the securities are purchased or sold. Cost is determined, and gains and losses are based, on the identified cost basis for both financial statement and federal income tax purposes. Dividend income is recorded on the ex-dividend date. Interest income and estimated expenses are accrued daily. Bond discounts and premiums are accreted or amortized using the interest method. For the six months ended March 31, 2007, the Bank of New York, custodian of each Fund (other than Global Fund and International Fund), has provided credits in the amount of $61,060 against custodian charges based on the uninvested cash balances of these Funds. The Funds also reduced expenses through brokerage service arrangements. For the six months ended March 31, 2007, the Funds expenses were reduced by $8,385 under these arrangements. 2. Security Transactions--For the six months ended March 31, 2007, 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 $ 56,000,166 $ 61,598,822 $24,357,147 $24,503,724 Value 18,822,355 7,184,437 -- -- Blue Chip 4,617,539 19,064,307 -- -- Growth & Income 98,054,784 96,448,952 -- -- Select Growth 100,112,379 106,241,922 -- -- Global 240,537,206 246,486,962 -- -- Mid-Cap Opportunity 149,017,055 164,533,068 -- -- Special Situations 97,552,569 93,447,847 -- -- Focused Equity 19,515,849 24,597,670 -- -- International 36,974,428 5,778,734 -- -- Notes to Financial Statements (continued) FIRST INVESTORS EQUITY FUNDS March 31, 2007 At March 31, 2007, 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 $320,730,299 $ 62,656,422 $ 7,649,122 $ 55,007,300 Value 312,181,146 105,412,261 3,054,899 102,357,362 Blue Chip 349,733,317 156,608,121 10,991,172 145,616,949 Growth & Income 622,394,869 230,260,675 26,384,199 203,876,476 Select Growth 197,664,937 32,570,241 2,508,505 30,061,736 Global* 256,144,979 43,576,087 3,935,859 39,640,228 Mid-Cap Opportunity 387,387,678 141,768,287 5,050,901 136,717,386 Special Situations 250,906,162 55,235,610 3,910,217 51,325,393 Focused Equity 42,807,537 7,639,637 343,098 7,296,539 International* 49,053,927 4,975,842 243,642 4,732,200 * Aggregate cost includes PFIC income of $2,091,078 for Global Fund and $75,871 for International Fund. 3. Advisory Fee and Other Transactions With Affiliates--Certain officers and trustees of the Trust are officers and directors of the Trust's investment adviser, First Investors Management Company, Inc. ("FIMCO"), its underwriter, First Investors Corporation ("FIC"), its transfer agent, Administrative Data Management Corp. ("ADM") and/or First Investors Federal Savings Bank, ("FIFSB"), custodian of the Funds' retirement accounts. Trustees of the Trust who are not "interested persons" of the Funds as defined in the 1940 Act are remunerated by the Funds. For the six months ended March 31, 2007, total trustees fees accrued by the Funds amounted to $79,426. The Investment Advisory Agreements provide as compensation to FIMCO, an annual fee, payable monthly, at the following rates: Total Return, Value, Blue Chip, Growth & Income, Select Growth, Mid-Cap Opportunity 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, .66% on the next $500 million, declining by .02% on each $500 million thereafter, down to .60% on average daily net assets over $2.25 billion. Special Situations Fund--1% on the first $200 million of the Fund's average daily net assets, .75% on the next $300 million, .72% on the next $250 million, .69% on the next $250 million, .66% on the next $500 million, and ..64% on average daily net assets over $1.5 billion. During the period October 1, 2006 to March 31, 2007, FIMCO has waived 25% of the 1% annual fee on the first $200 million of the Fund's average daily net assets. Global and International Funds--.98% on the first $300 million of the Fund's average daily net assets, .95% on the next $300 million, .92% on the next $400 million, .90% on the next $500 million and .88% on average daily net assets over $1.5 billion. During the period October 1, 2006 to March 31, 2007, FIMCO has voluntarily waived $58,815 in advisory fees on the International Fund to limit the Fund's overall expense ratio to 2.50% on Class A shares and 3.20% on Class B shares. For the six months ended March 31, 2007, total advisory fees accrued to FIMCO by the Funds were $13,386,205 of which $308,130 was waived as noted above. FIMCO, pursuant to an expense limitation agreement, assumed for the International Fund organizational expenses and expenses incurred during the fiscal year ended September 30, 2006, to the extent necessary to limit the International Fund's total expenses to 2.50% of the average daily net assets on the Class A shares and 3.20% of the average daily net assets on the Class B shares. FIMCO and the International Fund have agreed that any expenses of the International Fund assumed by FIMCO pursuant to this agreement shall be repaid to FIMCO by the International Fund in the first, second, or third fiscal years following the year ended September 30, 2006, if the total expenses of the International Fund for such year or years do not exceed 2.50% of the average daily net assets on Class A shares and 3.20% on the average daily net assets of Class B shares or any lower expense limitations to which FIMCO may otherwise agree. At September 30, 2006, the total organizational expenses and expenses incurred in excess of the above stated limitations was $101,265. This amount is subject to recapture by FIMCO from the International Fund based on the parameters discussed above. For the six months ended March 31, 2007, FIC, as underwriter, received $9,250,709 in commissions from the sale of shares of the Funds, after allowing $31,143 to other dealers. Shareholder servicing costs included $3,752,254 in transfer agent fees accrued to ADM and $954,828 in retirement accounts custodian fees accrued to FIFSB. Pursuant to Distribution Plans adopted under Rule 12b-1 of the 1940 Act, each Fund is authorized to pay FIC a fee up to .30% of the average daily net assets of the Class A shares and 1% of the average daily net assets of the Class B shares on an annualized basis each fiscal year, payable monthly. The fee consists of a distribution fee and a service fee. The service fee is paid for the ongoing servicing of clients who are shareholders of that Fund. For the six months ended March 31, 2007, total distribution plan fees accrued to FIC by the Funds amounted to $6,240,809. Notes to Financial Statements (continued) FIRST INVESTORS EQUITY FUNDS March 31, 2007 Wellington Management Company, LLP ("Wellington") serves as investment subadviser to Focused Equity Fund and Global Fund. Paradigm Capital Management, Inc. serves as investment subadviser to Special Situations Fund. Vontobel Asset Management, Inc. serves as investment adviser to International Fund. Wellington served as investment subadviser to All-Cap Growth Fund through May 4, 2007. Effective May 7, 2007, Smith Asset Management Group, L.P. serves as investment subadviser to Select Growth Fund. The subadvisers are paid by FIMCO and not by the Funds. 4. Forward Currency Contracts and Foreign Exchange Contracts--Forward currency contracts and foreign exchange contracts are obligations to purchase or sell a specific currency for an agreed-upon price at a future date. When a Fund purchases or sells foreign securities it customarily enters into a forward currency contract to minimize foreign exchange risk between the trade date and the settlement date of such transactions. The Fund could be exposed to risk if counter parties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. Forward currency contracts and foreign exchange contracts are "marked-to-market" daily at the applicable translation rate and the resulting unrealized gains or losses are reflected in the Fund's assets. The Global Fund had the following forward currency contracts outstanding at March 31, 2007: Contracts to Buy Unrealized Foreign Currency In Exchange for Settlement Date Gain (Loss) - ---------------------------- --------------- --------------- ---------- 1,790,737 Japanese Yen US$ 14,601 4/2/07 US$ (121) 83,152 Canadian Dollar 71,760 4/3/07 317 564,189 Japanese Yen 4,805 4/3/07 (26) --------------- ---------- $ 91,166 170 =============== ---------- Contracts to Sell Unrealized Foreign Currency In Exchange for Settlement Date Gain (Loss) - ---------------------------- --------------- --------------- ---------- 404,497 Euro US$ 539,478 4/2/07 US$ 1,031 15,447,838 Japanese Yen 130,627 4/2/07 (203) --------------- ---------- $ 670,105 828 =============== ---------- Net Unrealized Gain on Forward Currency Contracts $ 998 ========== The International Fund had the following foreign exchange contracts outstanding at March 31, 2007: Contracts to Buy Unrealized Foreign Currency In Exchange for Settlement Date Gain (Loss) - ---------------------------- --------------- --------------- ---------- 5,462,000 Mexican Peso US$ 504,396 6/1/07 US$ (8,369) 394,284,000 South Korean Won 426,162 6/11/07 (6,978) 2,350,000 Australian Dollar 1,893,701 6/21/07 4,753 1,780,000 British Pound 3,440,918 7/9/07 50,305 3,428,000 Euro 4,545,871 7/9/07 17,312 4,070,000 Swiss Franc 3,375,253 7/9/07 (41,374) 827,000 South African Rand 110,483 3/5/08 3,546 --------------- ---------- $14,296,784 19,195 =============== ---------- Contracts to Sell Unrealized Foreign Currency In Exchange for Settlement Date Loss - ---------------------------- --------------- --------------- ---------- 5,462,000 Mexican Peso US$ 488,301 6/1/07 US$ (7,726) 394,284,000 South Korean Won 415,145 6/11/07 (4,039) 2,350,000 Australian Dollar 1,829,185 6/21/07 (69,268) 1,780,000 British Pound 3,434,012 7/9/07 (57,211) 3,428,000 Euro 4,480,375 7/9/07 (82,808) 4,070,000 Swiss Franc 3,330,730 7/9/07 (3,150) 4,395,000 South African Rand 575,537 3/5/08 (30,461) --------------- ---------- $14,553,285 (254,663) =============== ---------- Net Unrealized Loss on Foreign Exchange Contracts $(235,468) ========== 5. Restricted Securities--Certain restricted securities are exempt from the registration requirements under Rule 144A of the Securities Act of 1933 and may only be sold to qualified institutional investors. At March 31, 2007, Total Return Fund held one 144A security with a value of $977,158, representing .3% of the Fund's net assets, and the Global Fund held one 144A security with a value of $910,560, representing .3% of the Fund's net assets. 6. Capital--The Trust is authorized to issue an unlimited number of shares of beneficial interest without par value. The Trust consists of the Funds listed on the cover page, each of which is a separate and distinct series of the Trust. Each Fund has designated two classes of shares, Class A shares and Class B shares (each, a "Class"). Each share of each Class has an equal beneficial interest in the assets, has identical voting, dividend, liquidation and other rights and is subject to the same terms and Notes to Financial Statements (continued) FIRST INVESTORS EQUITY FUNDS March 31, 2007 conditions except that expenses allocated to a Class may be borne solely by that Class as determined by the Trustees and a Class may have exclusive voting rights with respect to matters affecting only that Class. Class A and Class B shares have a public offering price that reflects different sales charges and expense levels. Class A shares are sold with an initial sales charge of up to 5.75% of the amount invested and together with the Class B shares are subject to distribution plan fees as described in Note 3. Class B shares are sold without an initial sales charge, but are generally subject to a contingent deferred sales charge which declines in steps from 4% to 0% over a six-year period. Class B shares automatically convert into Class A shares after eight years. Realized and unrealized gains or losses, investment income and expenses (other than distribution plan fees) are allocated daily to each class of shares based upon the relative proportion of net assets of each class. 7. New Accounting Pronouncements--In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Funds' tax returns to determine whether tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. FIMCO believes that the adoption of FIN 48 will have no impact on the financial statements of the Funds. In September 2006, the FASB issued Statement on Financial Accounting Standards ("SFAS") No. 157, "Fair Value Measurements." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles for the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of March 31, 2007, FIMCO does not believe the adoption of SFAS No. 157 will impact the financial statement amounts of the Funds, however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period. 8. Subsequent Event--On February 15, 2007, the Board approved, subject to shareholder approval, an agreement under which Smith Asset Management Group, L.P. ("Smith Group") would serve as subadviser of Select Growth Fund (formerly All-Cap Growth Fund, the "Fund") and replace the Fund's current subadviser, Wellington. Shareholders of the Fund approved the agreement with Smith Group on April 26, 2007. At the close of business on May 4, 2007, the subadvisory agreement with Wellington was terminated and Smith Group assumed management of the Fund. Board Considerations of Advisory Contracts and Fees (Unaudited) SELECT GROWTH FUND Initial Consideration of the Sub-Advisory Agreement with Smith Asset Management Group, L.P. for Select Growth Fund At a meeting held on February 15, 2007 (the "February Meeting"), the Board of Trustees ("Board"), including a majority of the non-interested or independent Trustees (hereinafter, "Trustees"), approved an initial sub-advisory agreement between First Investors Management Company, Inc. ("FIMCO") and Smith Asset Management Group, L.P. ("Smith Group") with respect to the Select Growth Fund (the "Fund") (the "Proposed Agreement"). The Board considered several factors when evaluating Smith Group and in approving the Proposed Agreement and recommending its approval to shareholders, including Smith Group's experience in managing multi-cap growth stocks, the past performance of accounts managed by Smith Group with a similar investment mandate, its overall capabilities to perform the services under the Proposed Agreement and its willingness to perform those services for the Fund. In considering the Proposed Agreement, the independent Trustees received assistance from and met separately with independent legal counsel and were provided with a written description of their statutory responsibilities and the legal standards that are applicable to approvals of advisory agreements. Although not meant to be all-inclusive, the following discusses some of the factors relevant to the Board's decision to approve the Proposed Agreement. Nature, Extent, and Quality of Services to be Provided by Smith Group The Board considered Smith Group's investment process, its experience in managing portfolios using its growth strategy, and the experience and capabilities of the personnel who will be responsible for the management of the Fund. In addition, the Board considered the differences between Smith Group's investment strategy compared to that of Wellington Management Company, LLP ("Wellington"), the current subadviser to the Fund. The Board also took into consideration FIMCO's belief that Smith Group's approach to investing in multi-cap growth stocks may increase the potential for positive returns for Fund shareholders. The Board also considered that Smith Group guaranteed a level of capacity for asset growth of the Fund that FIMCO considers to be desirable for the future needs of the Fund. In addition, the Board considered Smith Group's investment resources, infrastructure and the adequacy of its compliance program. Based on this information, the Board concluded that the nature, extent and quality of the subadvisory services to be provided by Smith Group were appropriate for the Fund in light of its investment objective, and, thus, supported a decision to approve the Proposed Agreement. Board Considerations of Advisory Contracts and Fees (continued) (Unaudited) SELECT GROWTH FUND Performance of Smith Group The Board evaluated Smith Group's historical investment performance record in managing assets utilizing a multi-cap growth mandate. In this regard, the Board evaluated the performance of the Smith Group Large Cap Core/Growth Composite with the performance of the S&P 500 Index and the average performance of the Lipper Multi-Cap Growth peer group for the period January 1, 2001 to December 31, 2006 and the performance of the Russell 3000 Growth Index over various time periods ending December 31, 2006. The Board noted that the performance of the Smith Group Large Cap Core/Growth Composite was better than the performance of the S&P 500 Index and the Lipper Multi-Cap Growth peer group average for most of the periods presented and was better than the performance of the Russell 3000 Growth Index for all of the periods presented. The Trustees concluded that the historical investment performance record of Smith Group supported approval of the Proposed Agreement. Subadvisory Fees In evaluating the Proposed Agreement, the Board reviewed Smith Group's proposed subadvisory fee schedule. The Board considered that Smith Group represented to FIMCO that the fee to be paid by FIMCO under the Proposed Agreement is lower than the fee Smith Group charges to the other accounts it manages with a similar investment mandate. The Board noted that the proposed subadvisory fee to be paid to Smith Group is lower than the fee currently charged by Wellington. The Trustees concluded that Smith Group's subadvisory fees under the Proposed Agreement appeared to be within a reasonable range for the services to be provided to the Fund. The Board also noted that there would be an economic benefit to FIMCO because the fee to be paid by FIMCO to Smith Group under the Proposed Agreement is lower than the fee currently charged by Wellington. Costs of the Services to be Provided and Profits to be Realized by Smith Group and its Affiliates from the Relationship with the Fund Since the subadvisory relationship with Smith Group is new, the Board did not consider the costs of the services to be provided and profits to be realized by Smith Group and its affiliates from the relationship with the Fund. Extent to Which Economies of Scale Would be Realized as the Fund Grows and Whether Fee Levels Reflect These Economies of Scale for the Benefit of Fund Investors The Board considered that the fees to be paid to Smith Group under the Proposed Agreement are to be paid by FIMCO and not the Fund, and noted that FIMCO negotiated "breakpoints" in Smith Group's fees based on the levels of assets in the Fund. The Board also considered that the investment management agreement fee schedule with FIMCO for the Fund includes breakpoints so that when assets of the Fund grow, management economies of scale may be shared for the benefit of shareholders. Benefits to be Derived by Smith Group From the Relationship with the Fund The Board considered the "fall-out" or ancillary benefits that may accrue to Smith Group as a result of the subadvisory relationship with the Fund, including greater exposure in the marketplace with respect to the subadviser's investment process, expanding the level of assets under management by Smith Group and potentially increased opportunities for soft dollar arrangements. With regard to these arrangements, the Board noted that Smith Group may direct the Fund's brokerage transactions to certain brokers to obtain research and other services, which may be used in servicing other clients of Smith Group. However, the Board noted that Smith Group must select brokers based on the Fund's requirements for seeking best execution. After review of this information, the Trustees concluded that the potential benefits accruing to Smith Group by virtue of its relationship with the Fund are fair and reasonable. * * * The Board did not identify any single factor as being of paramount importance. In summary, based on the various considerations described above, the Trustees, including a majority of the independent Trustees, concluded that the proposed subadvisory fee is reasonable and that the approval of the Proposed Agreement is in the best interests of the Fund and its shareholders, and as a result approved the Proposed Agreement. Financial Highlights FIRST INVESTORS EQUITY FUNDS The following table sets forth the per share operating performance data for a share outstanding, total return, ratios to average net assets and other supplemental data for each fiscal year ended September 30, except as otherwise indicated. - ----------------------------------------------------------------------------------------------------- P E R S H A R E D A T A ---------------------------------------------------------------------------------------- Less Distributions Investment Operations from ------------------------------------- ---------------------- Net Asset Net Realized Value, Net and Unrealized Total from Net Net Beginning Investment Gain (Loss) on Investment Investment Realized Total of Period Income Investments Operations Income Gain Distributions - ----------------------------------------------------------------------------------------------------- TOTAL RETURN FUND - ----------------- Class A - ------- 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 2006 13.93 .23 .64 .87 .23 -- .23 2007(b) 14.57 .14 .97 1.11 .15 .10 .25 Class B - ------- 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 2006 13.73 .13 .63 .76 .13 -- .13 2007(b) 14.36 .04 .99 1.03 .09 .10 .19 - ----------------------------------------------------------------------------------------------------- VALUE FUND++ - ------------ Class A - ------- 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 2006 6.61 .09 .78 .87 .08 -- .08 2007(b) 7.40 .05 .59 .64 .05 -- .05 Class B - ------- 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 2006 6.51 .04 .76 .80 .03 -- .03 2007(b) 7.28 .02 .59 .61 .02 -- .02 - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- R A T I O S / S U P P L EM E N T A L D A T A - ------------------------ -------------------------------------------------------------------------------- Ratio to Average Net Ratio to Average Net Assets Before Expenses Assets** Waived or Assumed Net Asset -------------------- ---------------------- Value, Net Assets Net Net Portfolio End of Total End of Period Investment Investment Turnover Period Return* (in millions) Expenses Income Expenses Income Rate - ----------------------------------------------------------------------------------------------------------- TOTAL RETURN FUND - ----------------- Class A - ------- 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 2006 14.57 6.24 312 1.38 1.63 1.44 1.57 57 2007(b) 15.43 7.62 336 1.35+ 2.12+ N/A N/A 23 Class B - ------- 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 2006 14.36 5.53 36 2.08 .93 2.14 .87 57 2007(b) 15.20 7.22 36 2.05+ 1.42+ N/A N/A 23 - ----------------------------------------------------------------------------------------------------------- VALUE FUND++ - ------------ Class A - ------- 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 2006 7.40 13.22 337 1.40 1.29 N/A N/A 15 2007(b) 7.99 8.65 386 1.34+ 1.32+ N/A N/A 2 Class B - ------- 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 2006 7.28 12.34 28 2.10 .59 N/A N/A 15 2007(b) 7.87 8.42 29 2.04+ .62+ N/A N/A 2 - ----------------------------------------------------------------------------------------------------------- Financial Highlights (continued) FIRST INVESTORS EQUITY FUNDS - ----------------------------------------------------------------------------------------------------- P E R S H A R E D A T A ---------------------------------------------------------------------------------------- Less Distributions Investment Operations from ------------------------------------- ---------------------- Net Asset Net Net Realized Value, Investment and Unrealized Total from Net Net Beginning Income Gain (Loss) on Investment Investment Realized Total of Period (Loss) Investments Operations Income Gain Distributions - ----------------------------------------------------------------------------------------------------- BLUE CHIP FUND - -------------- Class A - ------- 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 2006 20.60 .10 1.82 1.92 .07 -- .07 2007(b) 22.45 .07 1.17 1.24 .06 -- .06 Class B - ------- 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 2006 19.30 (.08) 1.72 1.64 -- -- -- 2007(b) 20.94 (.03) 1.12 1.09 -- -- -- - ----------------------------------------------------------------------------------------------------- GROWTH & INCOME FUND - -------------------- Class A - ------- 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 2006 13.67 .05 1.05 1.10 .05 -- .05 2007(b) 14.72 .05 1.57 1.62 .04 .24 .28 Class B - ------- 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 2006 13.06 (.12) 1.07 .95 -- -- -- 2007(b) 14.01 (.05) 1.54 1.49 -- .24 .24 - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- R A T I O S / S U P P L EM E N T A L D A T A - ------------------------ -------------------------------------------------------------------------------- Ratio to Average Net Ratio to Average Net Assets Before Expenses Assets** Waived or Assumed -------------------- ---------------------- Net Asset Net Net Value, Net Assets Investment Investment Portfolio End of Total End of Period Income Income Turnover Period Return* (in millions) Expenses (Loss) Expenses (Loss) Rate - ----------------------------------------------------------------------------------------------------------- BLUE CHIP FUND - -------------- Class A - ------- 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 2006 22.45 9.31 438 1.46 .47 1.50 .43 6 2007(b) 23.63 5.52 454 1.40+ .62+ N/A N/A 1 Class B - ------- 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 2006 20.94 8.50 44 2.16 (.23) 2.20 (.27) 6 2007(b) 22.03 5.20 42 2.10+ (.08)+ N/A N/A 1 - ----------------------------------------------------------------------------------------------------------- GROWTH & INCOME FUND - -------------------- Class A - ------- 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 2006 14.72 8.06 671 1.37 .35 N/A N/A 34 2007(b) 16.06 11.05 754 1.33+ .71+ N/A N/A 12 Class B - ------- 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 2006 14.01 7.28 72 2.07 (.35) N/A N/A 34 2007(b) 15.26 10.69 71 2.03+ .01+ N/A N/A 12 - ----------------------------------------------------------------------------------------------------------- Financial Highlights (continued) FIRST INVESTORS EQUITY FUNDS - ----------------------------------------------------------------------------------------------------- P E R S H A R E D A T A ---------------------------------------------------------------------------------------- Less Distributions Investment Operations from ------------------------------------- ---------------------- Net Asset Net Net Realized Value, Investment and Unrealized Total from Net Net Beginning Income Gain (Loss) on Investment Investment Realized Total of Period (Loss) Investments Operations Income Gain Distributions - ----------------------------------------------------------------------------------------------------- SELECT GROWTH FUND+++ - ------------------ Class A - ------- 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 -- -- -- 2006 8.82 (.06) .50 .44 -- -- -- 2007(b) 9.26 (.02) .56 .54 -- .76 .76 Class B - ------- 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 -- -- -- 2006 8.52 (.12) .49 .37 -- -- -- 2007(b) 8.89 (.05) .53 .48 -- .76 .76 - ----------------------------------------------------------------------------------------------------- GLOBAL FUND - ----------- Class A - ------- 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 -- -- -- 2006 7.06 .01 .71 .72 .02 -- .02 2007(b) 7.76 (.01) .76 .75 .05 .76 .81 Class B - ------- 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 -- -- -- 2006 6.52 (.05) .67 .62 -- -- -- 2007(b) 7.14 (.12) .79 .67 .06 .76 .82 - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- R A T I O S / S U P P L EM E N T A L D A T A - ------------------------ -------------------------------------------------------------------------------- Ratio to Average Net Ratio to Average Net Assets Before Expenses Assets** Waived or Assumed -------------------- ---------------------- Net Asset Net Net Value, Net Assets Investment Investment Portfolio End of Total End of Period Income Income Turnover Period Return* (in millions) Expenses (Loss) Expenses (Loss) Rate - ----------------------------------------------------------------------------------------------------------- SELECT GROWTH FUND+++ - ------------------ Class A - ------- 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 2006 9.26 4.99 195 1.53 (.65) N/A N/A 107 2007(b) 9.04 6.08 204 1.47+ (.52)+ N/A N/A 46 Class B - ------- 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 2006 8.89 4.34 23 2.23 (1.35) N/A N/A 107 2007(b) 8.61 5.63 23 2.17+ (1.22)+ N/A N/A 46 - ----------------------------------------------------------------------------------------------------------- GLOBAL FUND - ----------- Class A - ------- 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 2006 7.76 10.15 260 1.77 .14 N/A N/A 105 2007(b) 7.70 10.37 283 1.74+ (.54)+ N/A N/A 85 Class B - ------- 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 2006 7.14 9.51 14 2.47 (.56) N/A N/A 105 2007(b) 6.99 9.99 14 2.44+ (1.24)+ N/A N/A 85 - ----------------------------------------------------------------------------------------------------------- Financial Highlights (continued) FIRST INVESTORS EQUITY FUNDS - ----------------------------------------------------------------------------------------------------- P E R S H A R E D A T A ---------------------------------------------------------------------------------------- Less Distributions Investment Operations from ------------------------------------- ---------------------- Net Asset Net Net Realized Value, Investment and Unrealized Total from Net Net Beginning Income Gain (Loss) on Investment Investment Realized Total of Period (Loss) Investments Operations Income Gain Distributions - ----------------------------------------------------------------------------------------------------- MID-CAP OPPORTUNITY FUND - ------------------------ Class A - ------- 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 -- -- -- 2006 28.24 (.09) .77 .68 -- .78 .78 2007(b) 28.14 .08 3.44 3.52 -- 1.33 1.33 Class B - ------- 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 -- -- -- 2006 26.06 (.29) .73 .44 -- .78 .78 2007(b) 25.72 (.02) 3.14 3.12 -- 1.33 1.33 - ----------------------------------------------------------------------------------------------------- SPECIAL SITUATIONS FUND - -------------------------- Class A - ------- 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 -- -- -- 2006 20.44 .11 2.07 2.18 -- -- -- 2007(b) 22.62 (.03) 2.83 2.80 -- 1.88 1.88 Class B - ------- 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 -- -- -- 2006 18.72 (.26) 2.11 1.85 -- -- -- 2007(b) 20.57 (.10) 2.57 2.47 -- 1.88 1.88 - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- R A T I O S / S U P P L EM E N T A L D A T A - ------------------------ -------------------------------------------------------------------------------- Ratio to Average Net Ratio to Average Net Assets Before Expenses Assets** Waived or Assumed -------------------- ---------------------- Net Asset Net Net Value, Net Assets Investment Investment Portfolio End of Total End of Period Income Income Turnover Period Return* (in millions) Expenses (Loss) Expenses (Loss) Rate - ----------------------------------------------------------------------------------------------------------- MID-CAP OPPORTUNITY FUND - ------------------------ Class A - ------- 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 2006 28.14 2.58 435 1.44 (.33) 1.47 (.36) 55 2007(b) 30.33 12.89 472 1.40+ .55+ N/A N/A 30 Class B - ------- 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 2006 25.72 1.85 51 2.14 (1.03) 2.17 (1.06) 55 2007(b) 27.51 12.53 53 2.10+ (.15)+ N/A N/A 30 - ----------------------------------------------------------------------------------------------------------- SPECIAL SITUATIONS FUND - -------------------------- Class A - ------- 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 2006 22.62 10.67 249 1.53 (.49) 1.73 (.69) 48 2007(b) 23.54 12.80 284 1.46+ (.27)+ 1.63+ (.44)+ 33 Class B - ------- 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 2006 20.57 9.88 18 2.23 (1.19) 2.43 (1.39) 48 2007(b) 21.16 12.46 19 2.16+ (.97)+ 2.33+ (1.14)+ 33 - ----------------------------------------------------------------------------------------------------------- Financial Highlights (continued) FIRST INVESTORS EQUITY FUNDS - ----------------------------------------------------------------------------------------------------- P E R S H A R E D A T A ---------------------------------------------------------------------------------------- Less Distributions Investment Operations from ------------------------------------- ---------------------- Net Asset Net Net Realized Value, Investment and Unrealized Total from Net Net Beginning Income Gain (Loss) on Investment Investment Realized Total of Period (Loss) Investments Operations Income Gain Distributions - ----------------------------------------------------------------------------------------------------- FOCUSED EQUITY FUND - ------------------- Class A - ------- 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 2006 8.70 (.02) .43 .41 .01 -- .01 2007(b) 9.10 -- .50 .50 -- -- -- Class B - ------- 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 -- -- -- 2006 8.33 (.09) .42 .33 -- -- -- 2007(b) 8.66 (.04) .48 .44 -- -- -- - ----------------------------------------------------------------------------------------------------- INTERNATIONAL FUND - ------------------ Class A - ------- 2006(a) $10.00 $ -- $ .71 $ .71 $ -- -- $ -- 2007(b) 10.71 .07 1.19 1.26 .07 -- .07 Class B - ------- 2006(a) 10.00 (.01) .71 .70 -- -- -- 2007(b) 10.70 .02 1.19 1.21 .07 -- .07 - ----------------------------------------------------------------------------------------------------- * Calculated without sales charges. ** Net of expenses waived or assumed by the investment adviser (Note 3). + Annualized ++ Prior to December 31, 2002, known as Utilities Income Fund. +++ Prior to May 7, 2007, known as All-Cap Growth Fund. (a) For the period June 27, 2006 (commencement of operations) to September 30, 2006. (b) For the period October 1, 2006 to March 31, 2007. See notes to financial statements - ----------------------------------------------------------------------------------------------------------- R A T I O S / S U P P L EM E N T A L D A T A - ------------------------ -------------------------------------------------------------------------------- Ratio to Average Net Ratio to Average Net Assets Before Expenses Assets** Waived or Assumed -------------------- ---------------------- Net Asset Net Net Value, Net Assets Investment Investment Portfolio End of Total End of Period Income Income Turnover Period Return* (in millions) Expenses (Loss) Expenses (Loss) Rate - ----------------------------------------------------------------------------------------------------------- FOCUSED EQUITY FUND - ------------------- Class A - ------- 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 2006 9.10 4.72 45 1.80 (.18) N/A N/A 76 2007(b) 9.60 5.49 43 1.70+ (.06)+ N/A N/A 38 Class B - ------- 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 2006 8.66 3.96 8 2.50 (.88) N/A N/A 76 2007(b) 9.10 5.08 7 2.40+ (.76)+ N/A N/A 38 - ----------------------------------------------------------------------------------------------------------- INTERNATIONAL FUND - ------------------ Class A - ------- 2006(a) $10.71 7.10% $ 19 2.35%+ .15%+ 5.65%+ (3.15)%+ 9% 2007(b) 11.90 11.81 55 2.50+ .16+ 2.80+ (.14)+ 17 Class B - ------- 2006(a) 10.70 7.00 1 3.05+ (.55)+ 6.35+ (3.85)+ 9 2007(b) 11.84 11.36 3 3.20+ (.54)+ 3.50+ (.84)+ 17 - ----------------------------------------------------------------------------------------------------------- Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Trustees of First Investors Equity Funds We have audited the accompanying statements of assets and liabilities, including the portfolios of investments of the Total Return Fund, Value Fund, Blue Chip Fund, Growth & Income Fund, Select Growth Fund (formerly All-Cap Growth Fund), Global Fund, Mid-Cap Opportunity Fund, Special Situations Fund, Focused Equity Fund and International Fund (each a series of First Investors Equity Funds), as of March 31, 2007, and the related statements of operations, the statements of changes in net assets, and the financial highlights for each of the periods indicated thereon. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we 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 March 31, 2007, 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 Total Return Fund, Value Fund, Blue Chip Fund, Growth & Income Fund, Select Growth Fund, Global Fund, Mid-Cap Opportunity Fund, Special Situations Fund, Focused Equity Fund, and International Fund as of March 31, 2007, and the results of their operations, changes in their net assets, and their financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America. Tait, Weller & Baker LLP Philadelphia, Pennsylvania May 15, 2007 This page intentionally left blank. FIRST INVESTORS EQUITY FUNDS Trustees - ----------------------- Charles R. Barton, III Stefan L. Geiringer Robert M. Grohol Kathryn S. Head Arthur M. Scutro, Jr. James M. Srygley John T. Sullivan Robert F. Wentworth Officers - ----------------------- Kathryn S. Head President Larry R. Lavoie Chief Compliance Officer Joseph I. Benedek Treasurer Mark S. Spencer Assistant Treasurer Carol Lerner Brown Assistant Secretary FIRST INVESTORS EQUITY FUNDS Shareholder Information - ----------------------- Investment Adviser Custodian First Investors Management Company, Inc. The Bank of New York 95 Wall Street One Wall Street New York, NY 10005 New York, NY 10286 Subadviser Custodian (Focused Equity and Global Funds) (Global and International Funds) Wellington Management Company, LLP Brown Brothers Harriman & Co. 75 State Street 40 Water Street Boston, MA 02109 Boston, MA 02109 Subadviser (Special Situations Fund) Transfer Agent Paradigm Capital Management, Inc. Administrative Data Management Corp. Nine Elk Street Raritan Plaza I - 8th Floor Albany, NY 12207 Edison, NJ 08837-3620 Subadviser (International Fund) Independent Registered Vontobel Asset Management, Inc. Public Accounting Firm 450 Park Avenue Tait, Weller & Baker LLP New York, NY 10022 1818 Market Street Philadelphia, PA 19103 Subadviser (Select Growth Fund) Smith Asset Management Group, L.P. Legal Counsel 100 Crescent Court Kirkpatrick & Lockhart Dallas, TX 75201 Preston Gates Ellis LLP 1601 K Street, N.W. Underwriter Washington, D.C. 20006 First Investors Corporation 95 Wall Street New York, NY 10005 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 Trust's prospectus. The Statement of Additional Information includes additional information about the Trust's 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. NOTES Item 2. Code of Ethics 		 Not applicable Item 3. Audit Committee Financial Expert 		 Not applicable Item 4. Principal Accountant Fees and Services 		 Not applicable Item 5. Audit Committee of Listed Registrants 		 Not applicable Item 6. Schedule of Investments 		 Schedule of investments is included as part of 		 the report to stockholders filed under Item 1 		 of this Form. Item 7. Disclosure of Proxy Voting Policies & Procedures for Closed-End Management Investment Companies 		 Not applicable Item 8. Portfolio Managers of Closed-End Management Investment Companies 		 Not applicable Item 9. Purchases of Equity Securities by Closed-End Management 	 Investment Companies and Affiliated Purchasers 		 Not applicable Item 10. Submission of Matters to a Vote of Security Holders There were no material changes to the procedure by which shareholders may recommend nominees to the Registrant's Board of 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)(1)	Code of Ethics - Not applicable (a)(2)	Certifications pursuant to Section 302 of the Sarbanes-Oxley Act 	of 2002 - Filed herewith (b)	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 Equity Funds (Registrant) By /S/ KATHRYN S. HEAD 	 Kathryn S. Head 	 President and Principal Executive Officer Date: June 7, 2007 	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 Equity Funds (Registrant) By /S/ JOSEPH I. BENEDEK 	 Joseph I. Benedek 	 Treasurer and Principal Financial Officer Date: June 7, 2007