UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------
FORM N-CSR
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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