-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HpYWdVL/NhltvgL/FAejcT194FVOBiw0eKvyfIspEbeb+qtVKadzs2KITkQfYrVR g8UXAkd1DV3dAQ1zTt4L9A== 0000276461-03-000018.txt : 20031205 0000276461-03-000018.hdr.sgml : 20031205 20031205085726 ACCESSION NUMBER: 0000276461-03-000018 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20030930 FILED AS OF DATE: 20031205 EFFECTIVENESS DATE: 20031205 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST INVESTORS CASH MANAGEMENT FUND INC CENTRAL INDEX KEY: 0000276461 IRS NUMBER: 132873780 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-02860 FILM NUMBER: 031039173 BUSINESS ADDRESS: STREET 1: 95 WALL ST CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 1-212-858-8000 MAIL ADDRESS: STREET 1: 581 MAIN STREET CITY: WOODBRIDGE STATE: NJ ZIP: 07095 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST INVESTORS FUND FOR INCOME INC/NY CENTRAL INDEX KEY: 0000312370 IRS NUMBER: 132670442 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-02107 FILM NUMBER: 031039174 BUSINESS ADDRESS: STREET 1: 95 WALL ST CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 1-212-858-8000 MAIL ADDRESS: STREET 1: 581 MAIN ST CITY: WOODBRIDGE STATE: NJ ZIP: 07095 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST INVESTORS GOVERNMENT FUND INC CENTRAL INDEX KEY: 0000740967 IRS NUMBER: 133204580 STATE OF INCORPORATION: MD FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-03967 FILM NUMBER: 031039176 BUSINESS ADDRESS: STREET 1: 95 WALL ST CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 1-212-858-8000 MAIL ADDRESS: STREET 1: 581 MAIN ST CITY: WOODBRIDGE STATE: NJ ZIP: 07095 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST INVESTORS SERIES FUND CENTRAL INDEX KEY: 0000842939 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-05690 FILM NUMBER: 031039175 BUSINESS ADDRESS: STREET 1: 95 WALL ST CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 1-212-858-8000 MAIL ADDRESS: STREET 1: 581 MAIN STREET CITY: WOODBRIDGE STATE: NJ ZIP: 07095 FORMER COMPANY: FORMER CONFORMED NAME: FIRST INVESTORS FUND DATE OF NAME CHANGE: 19900422 N-CSR 1 ncsr0930.txt FIRST INVESTORS TAXABLE BOND FUNDS UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------- FORM N-CSR -------- CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES INVESTMENT COMPANY ACT FILE NUMBERS 811-2860; 811-3967; 811-5690; 811-2107 FIRST INVESTORS CASH MANAGEMENT FUND, INC. FIRST INVESTORS GOVERNMENT FUND, INC. FIRST INVESTORS SERIES FUND FIRST INVESTORS FUND FOR INCOME, INC. (Exact name of registrant as specified in charter) - -------- 95 Wall Street New York, NY 10005 (Address of principal executive offices) (Zip code) Joseph I. Benedek First Investors Management Company, Inc. 581 Main Street Woodbridge, NJ 07095 (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, 2003 DATE OF REPORTING PERIOD: SEPTEMBER 30, 2003 Item 1. Reports to Stockholders - Filed herewith Portfolio Manager's Letter FIRST INVESTORS CASH MANAGEMENT FUND, INC. Dear Investor: This is the annual report for the First Investors Cash Management Fund for the fiscal year ended September 30, 2003. During the period, the Fund's return on a net asset value basis was .6% for Class A shares and .1% for Class B shares. The Fund maintained a $1.00 net asset value for each class of shares throughout the year. The primary factor that drove the Fund's performance during the fiscal year was the low short-term interest rate environment. Short-term interest rates moved generally lower through the first three quarters of the reporting period. The Federal Reserve Board ("the Fed") lowered short-term rates by 50 basis points (1/2 of 1%) in November 2002, and again by 25 basis points in June 2003. The Fund responded to the declining short-term interest rates by maintaining a relatively long weighted average maturity. The yield curve remained positively sloped during most of the period and offered opportunities for incremental return by investing in securities with longer maturities. The Fund also used corporate bonds and notes for incremental return, in addition to floating rate securities and various types of callable securities. Although money market funds are relatively conservative vehicles, there can be no assurance that they will be able to maintain a stable net asset value of $1.00 per share. Money market mutual funds are not insured by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Thank you for placing your trust in First Investors. As always, we appreciate the opportunity to serve your investment needs. Sincerely, /S/ MICHAEL J. O'KEEFE Michael J. O'Keefe Vice President and Portfolio Manager October 31, 2003
Portfolio of Investments FIRST INVESTORS CASH MANAGEMENT FUND, INC. September 30, 2003 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal Interest $10,000 of Amount Security Rate* Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- CORPORATE NOTES--46.3% $5,400M 3M Co., 11/3/03 1.00% $5,395,050 $291 Abbott Laboratories: 3,000M 10/16/03 + 1.00 2,998,749 162 750M 7/1/04 1.42 770,670 42 ChevronTexaco Funding Corp.: 1,200M 10/3/03 1.01 1,199,933 65 4,000M 11/3/03 1.03 3,996,220 216 5,000M Clorox Co., 11/7/03 1.00 4,994,860 270 750M Colgate-Palmolive Co., 12/1/03 1.13 755,106 41 5,000M Donnelley (R.R.) & Sons Co., 10/9/03 + 1.02 4,998,866 270 Dow Jones & Co., Inc.: 1,025M 10/22/03 + 1.03 1,024,384 55 3,000M 10/15/03 + 1.04 2,998,178 162 5,000M DuPont (E.I.) de Nemours & Co., 10/27/03 1.00 4,996,380 270 5,000M Gannett Company, Inc., 10/3/03 + 1.03 4,999,714 270 1,025M International Business Machines Corp., 11/10/03 1.10 1,029,367 55 Johnson & Johnson: 3,100M 10/15/03 + 1.00 3,098,791 167 1,200M 11/5/03 + 1.06 1,198,762 65 5,000M Lubrizol Corp., 10/10/03 + 1.00 4,998,747 270 4,000M New York Times Co., 10/15/03 1.02 3,998,413 216 5,000M Northern Illinois Gas Corp., 11/25/03 1.04 4,992,054 268 3,200M Paccar Financial Corp., 12/23/03 1.02 3,192,474 172 2,000M PepsiCo, Inc., 9/15/04 1.28 2,060,649 111 5,000M Pfizer, Inc., 11/13/03 + 1.02 4,993,907 269 5,000M Proctor & Gamble Co., 10/6/03 + 1.02 4,999,292 270 3,000M Prudential Funding Corp., 10/31/03 1.03 2,997,424 162 2,000M Schering-Plough Corp., 10/7/03 1.05 1,999,650 108 3,000M Verizon Network Funding, 10/20/03 1.01 2,998,400 162 4,000M Wal-Mart Stores, Inc., 10/21/03 + .99 3,997,799 216 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Corporate Notes (cost $85,683,839) 85,683,839 4,625 - ---------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS--41.0% 1,700M Federal Farm Credit Bank, 10/2/03 1.85 1,700,144 92 Federal Home Loan Bank: 9,000M 10/1/03 1.02 9,000,000 486 3,700M 10/15/03 1.00 3,698,561 200 1,000M 5/21/04 1.08 1,000,233 54 800M 5/26/04 1.25 829,686 45 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal Interest $10,000 of Amount Security Rate* Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Fannie Mae: $6,200M 10/10/03 1.04% $6,198,385 $335 3,000M 10/15/03 1.05 2,998,773 162 2,514M 10/16/03 1.05 2,512,900 135 7,000M 10/24/03 1.00 6,995,527 378 3,000M 11/14/03 1.09 3,013,011 163 627M 12/15/03 1.47 625,089 34 6,459M 3/15/04 1.19 6,564,982 353 500M 8/15/04 1.40 521,907 28 1,000M 8/27/04 1.38 999,292 54 2,000M 9/3/04 1.45 2,000,000 108 3,000M 9/14/04 1.45 3,000,000 162 2,000M 9/21/04 1.40 2,000,000 108 2,000M 9/24/04 1.50 2,000,000 108 2,000M 10/1/04 1.50 2,000,000 108 Freddie Mac: 4,700M 10/16/03 1.01 4,698,018 254 1,100M 1/15/04 1.04 1,106,905 60 5,155M 1/15/04 1.07 5,212,764 281 1,000M 2/15/04 1.04 1,015,482 55 1,000M 4/19/04 1.10 1,012,996 55 1,275M 5/20/04 1.19 1,289,485 69 3,000M 9/10/04 1.40 3,000,000 162 960M Tennessee Valley Authority, 11/1/03 1.75 958,563 52 - ---------------------------------------------------------------------------------------------------------------------- Total Value of U.S. Government Agency Obligations (cost $75,952,703) 75,952,703 4,101 - ---------------------------------------------------------------------------------------------------------------------- FLOATING RATE NOTES--5.2% 2,700M Fannie Mae, 9/10/04 1.08 2,700,000 146 Federal Farm Credit Bank: 2,200M 11/12/03 1.00 2,200,000 119 4,750M 2/26/04 1.07 4,749,421 256 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Floating Rate Notes (cost $9,649,421) 9,649,421 521 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS CASH MANAGEMENT FUND, INC. September 30, 2003 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal Interest $10,000 of Amount Security Rate* Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- BANKERS' ACCEPTANCES--3.1% Bank of America, NA: $1,769M 10/9/03 1.05% $1,768,822 $96 1,482M 10/10/03 1.05 1,481,176 80 1,099M 10/14/03 1.05 1,099,025 59 1,356M 10/15/03 1.05 1,355,050 73 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Bankers' Acceptances (cost $5,704,073) 5,704,073 308 - ---------------------------------------------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT--2.7% 5,000M Chase Manhattan Bank, NA, 10/7/03 (cost $5,000,000) 1.04 5,000,000 270 - ---------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS--.9% 1,750M U.S. Treasury Bills, 12/4/03 (cost $1,746,926) .99 1,746,926 94 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $183,736,962) ++ 99.2% 183,736,962 9,919 Other Assets, Less Liabilities .8 1,508,752 81 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $185,245,714 $10,000 ====================================================================================================================== * The interest rates shown are the effective rates at the time of purchase by the Fund. The interest rates shown on floating rate notes are adjusted periodically and are the rates in effect at September 30, 2003. + See Note 4 ++ Aggregate cost for federal income tax purposes is the same. See notes to financial statements
Portfolio Manager's Letter FIRST INVESTORS GOVERNMENT FUND, INC. Dear Investor: This is the annual report for the First Investors Government Fund for the fiscal year ended September 30, 2003. During the period, the Fund's return on a net asset value basis was 3.1% for Class A shares and 2.3% for Class B shares, including dividends of 54 cents per share on Class A shares and 45 cents per share on Class B shares. The Fund invests primarily in Government National Mortgage Association (GNMA) mortgage-backed bonds. The primary factors that drove the Fund's performance during the reporting period were the substantial increase in prepayments on mortgage-backed securities and the volatility in the bond market during the latter part of the reporting period. The generally low level of interest rates during the reporting period and their decline to historic lows in June adversely affected the performance of the mortgage-backed bond market. Specifically, 30-year mortgage rates fell to all-time lows (slightly above 5%), and refinancings of outstanding mortgages by homeowners rose to all-time highs (in part due to rising home values which stimulated cash-out refinancings to tap home equity). Consequently, prepayments on mortgage-backed bonds soared, reducing returns to investors. The Fund initiated positions in both GNMA 5-1/2% coupon and, later, GNMA 5% coupon mortgage-backed bonds as interest rates fell. The Fund also purchased higher coupon mortgage-backed bonds with favorable prepayment characteristics to replace holdings with comparable coupons that were called due to prepayments. The Fund generally benefited from these strategies with the exception of the GNMA 5% coupon position that underperformed when rates rose during the third quarter. Thank you for placing your trust in First Investors. As always, we appreciate the opportunity to serve your investment needs. Sincerely, /S/ CLARK D. WAGNER Clark D. Wagner Director of Fixed Income and Portfolio Manager October 31, 2003 Cumulative Performance Information FIRST INVESTORS GOVERNMENT FUND, INC. Comparison of change in value of $10,000 investment in the First Investors Government Fund, Inc. (Class A shares), the Citigroup Mortgage Index and the Citigroup Treasury/Government Sponsored Index. GOVERNMENT GRAPH PLOTS as of September 30, 2003 FIRST INVESTORS CITIGROUP CITIGROUP GOVERNMENT MORTGAGE TREASURY/GOVERNMENT DEC 93 $ 9,425 $10,000 $10,000 DEC 94 9,125 9,857 9,663 DEC 95 10,492 11,510 11,441 DEC 96 10,860 12,127 11,777 DEC 97 11,772 13,251 12,914 SEP 98 12,504 14,057 14,196 SEP 99 12,499 14,396 13,953 SEP 00 13,333 15,467 14,951 SEP 01 14,758 17,371 16,929 SEP 02 15,597 18,672 18,637 SEP 03 16,077 19,323 19,316 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 3.08% (2.84%) Five Years 5.27% 4.03% Ten Years 5.43% 4.81% S.E.C. 30-Day Yield 3.07% Class B Shares One Year 2.33% (1.67%) Five Years 4.49% 4.15% Since Inception (1/12/95) 6.05% 6.05% S.E.C. 30-Day Yield 2.50% The graph compares a $10,000 investment in the First Investors Government Fund, Inc. (Class A shares) beginning 12/31/93 with theoretical investments in the Citigroup Mortgage Index and the Citigroup Treasury/Government Sponsored Index (the "Indices"). The Citigroup Mortgage Index is a market capitalization-weighted index that consists of all agency pass-throughs and FHA and GNMA project notes. The Citigroup Treasury/Government Sponsored Index is a market capitalization-weighted index that consists of debt issued by the U.S. Treasury and U.S. Government sponsored agencies. Every issue included in the Indices is trader-priced, and the Indices follow consistent and realistic availability limits, including only those securities with sufficient amounts outstanding. It is not possible to invest directly in these Indices. In addition, the Indices do not take into account fees and expenses that an investor would incur in purchasing securities in these Indices. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 9/30/03) include the reinvestment of all dividends and distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Return for One Year, Five Years and Ten Years would have been (3.32%), 3.56% and 4.45%, respectively, and the S.E.C. 30-Day Yield for September 2003 would have been 2.65%. The Class B "S.E.C. Standardized" Average Annual Total Return for One Year, Five Years and Since Inception would have been (2.15%), 3.71% and 5.63%, respectively, and the S.E.C. 30-Day Yield for September 2003 would have been 2.04%. Results represent past performance and do not indicate future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Citigroup Mortgage Index and Citigroup Treasury/Government Sponsored Index figures are from Citigroup, Inc. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments FIRST INVESTORS GOVERNMENT FUND, INC. September 30, 2003 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MORTGAGE-BACKED CERTIFICATES--96.0% Fannie Mae--10.0% $3,746M 5.5%, 8/1/2033 $3,824,837 $186 13,486M 6%, 12/1/2029-9/1/2032 13,930,090 679 2,455M 8%, 9/1/2027 2,709,221 132 - ---------------------------------------------------------------------------------------------------------------------- 20,464,148 997 - ---------------------------------------------------------------------------------------------------------------------- Government National Mortgage Association I Program--80.0% 9,782M 5%, 6/15/2033-8/15/2033 9,812,157 478 36,496M 5.5%, 2/15/2033-8/15/2033 37,468,537 1,825 35,864M 6%, 3/15/2031-9/15/2033 37,330,183 1,818 46,231M 6.5%, 3/15/2028-9/15/2033 48,780,024 2,376 18,732M 7%, 7/15/2027-8/15/2033 19,979,915 973 5,437M 7.5%, 7/15/2023-1/15/2030 5,843,947 285 3,955M 8%, 4/15/2030-6/15/2030 4,335,190 211 618M 8.5%, 11/15/2030-10/15/2031 670,158 33 - ---------------------------------------------------------------------------------------------------------------------- 164,220,111 7,999 - ---------------------------------------------------------------------------------------------------------------------- Government National Mortgage Association II Program--6.0% 1,911M 6.5%, 10/20/2028-1/20/2029 2,002,343 98 7,043M 7%, 6/20/2023-10/20/2029 7,487,062 365 2,578M 7.5%, 12/20/2022-10/20/2023 2,757,407 134 - ---------------------------------------------------------------------------------------------------------------------- 12,246,812 597 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Mortgage-Backed Certificates (cost $193,358,098) 196,931,071 9,593 - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE NOTES--4.3% 4,500M ChevronTexaco Corp., 1.01%, 10/7/03 4,499,243 219 4,500M Prudential Funding Corp., 1.02%, 10/2/03 4,499,872 219 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Short-Term Corporate Notes (cost $8,999,115) 8,999,115 438 - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--.5% 1,000M Federal Home Loan Bank., 1.00%, 10/8/03 (cost $999,805) 999,805 49 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $203,357,018) 100.8% 206,929,991 10,080 Excess of Liabilities Over Other Assets (.8) (1,651,216) (80) - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $205,278,775 $10,000 ====================================================================================================================== See notes to financial statements
Portfolio Manager's Letter FIRST INVESTORS INVESTMENT GRADE FUND Dear Investor: This is the annual report for the First Investors Investment Grade Fund for the fiscal year ended September 30, 2003. During the period, the Fund's return on a net asset value basis was 8.9% for Class A shares and 8.2% for Class B shares, including dividends of 54 cents per share on Class A shares and 47 cents per share on Class B shares. The most important factors that drove the Fund's performance during the reporting period were the positive performance of the investment grade corporate bond sector, industry sector choices and security selection. Corporate bonds outperformed government securities during the reporting period, reflecting increased demand for corporates. Economically sensitive industries and the lower investment grade rating categories generally showed the best performance during this period. The Fund's decision to hold onto the bonds of strong companies in struggling sectors worked well as once-troubled sectors, such as telecommunications and utilities, rebounded during the reporting period. The Fund's holdings in the cable and automotive industries also helped performance. By contrast, the Fund's holdings in the airline industry had a substantial negative impact on returns. Thank you for placing your trust in First Investors. As always, we appreciate the opportunity to serve your investment needs. Sincerely, /S/ GEORGE V. GANTER George V. Ganter Vice President and Portfolio Manager October 31, 2003 Cumulative Performance Information FIRST INVESTORS INVESTMENT GRADE FUND Comparison of change in value of $10,000 investment in the First Investors Investment Grade Fund (Class A shares) and the Lehman Brothers U.S. Credit Index. INVESTMENT GRADE GRAPH PLOTS As of September 30, 2003 FIRST INVESTORS LEHMAN U.S. INVESTMENT GRADE CREDIT INDEX DEC 93 $ 9,425 $10,000 DEC 94 8,990 9,607 DEC 95 10,734 11,745 DEC 96 10,991 12,130 DEC 97 11,995 13,371 SEP 98 13,064 14,430 SEP 99 12,636 14,228 SEP 00 13,328 15,058 SEP 01 14,815 16,980 SEP 02 15,759 18,371 SEP 03 17,169 20,294 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 8.94% 2.66% Five Years 5.74% 4.50% Ten Years 6.16% 5.54% S.E.C. 30-Day Yield 3.52% Class B Shares One Year 8.17% 4.17% Five Years 4.97% 4.64% Since Inception (1/12/95) 7.07% 7.07% S.E.C. 30-Day Yield 3.01% The graph compares a $10,000 investment in the First Investors Investment Grade Fund (Class A shares) beginning 12/31/93 with a theoretical investment in the Lehman Brothers U.S. Credit Index (the "Index"). The Index includes all publicly issued, fixed-rate, nonconvertible investment grade dollar-denominated, S.E.C.-registered corporate debt. All issues have at least one year to maturity and an outstanding par value of at least $150 million. It is not possible to invest directly in this Index. In addition, the Index does not take into account fees and expenses that an investor would incur in purchasing securities in the Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 9/30/03) include the reinvestment of all dividends and distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Return for One Year, Five Years and Ten Years would have been 2.41%, 4.16% and 5.11%, respectively, and the S.E.C. 30-Day Yield for September 2003 would have been 3.35%. The Class B "S.E.C. Standardized" Average Annual Total Return for One Year, Five Years and Since Inception would have been 3.92%, 4.27% and 6.55%, respectively, and the S.E.C. 30-Day Yield for September 2003 would have been 2.83%. Results represent past performance and do not indicate future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Lehman Brothers U.S. Credit Index figures are from Lehman Brothers, Inc. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments FIRST INVESTORS INVESTMENT GRADE FUND September 30, 2003 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- CORPORATE BONDS--85.3% Aerospace/Defense--2.2% $100M Boeing Capital Corp., 4.75%, 2008 $104,065 $6 Honeywell International, Inc.: 1,500M 7.5%, 2010 1,806,285 104 975M 6.125%, 2011 1,092,130 62 700M Precision Castparts Corp., 8.75%, 2005 749,220 43 - ---------------------------------------------------------------------------------------------------------------------- 3,751,700 215 - ---------------------------------------------------------------------------------------------------------------------- Automotive--3.7% 2,000M DaimlerChrysler NA Holdings Corp., 8%, 2010 2,333,705 134 886M Ford Motor Co., 8.9%, 2032 926,965 53 800M Lear Corp., 8.11%, 2009 924,000 53 730M Navistar International Corp., 8%, 2008 750,075 43 717M TRW, Inc., 7.125%, 2009 828,448 47 700M Visteon Corp., 8.25%, 2010 747,167 43 - ---------------------------------------------------------------------------------------------------------------------- 6,510,360 373 - ---------------------------------------------------------------------------------------------------------------------- Chemicals--.9% 750M Du Pont (E.I.) de Nemours & Co., 8.125%, 2004 773,126 44 700M Lubrizol Corp., 7.25%, 2025 799,275 46 - ---------------------------------------------------------------------------------------------------------------------- 1,572,401 90 - ---------------------------------------------------------------------------------------------------------------------- Energy--3.5% 875M Ashland Oil, Inc., 8.8%, 2012 1,064,652 61 795M El Paso Energy Corp., 7.375%, 2012 653,888 38 500M Mobil Corp., 8.625%, 2021 685,785 39 750M Phillips Petroleum Co., 7.2%, 2023 779,802 45 833M Repsol International Finance BV, 7.45%, 2005 908,352 52 975M Sunoco, Inc., 9.375%, 2016 1,098,503 63 800M Texaco Capital, Inc., 8.25%, 2006 943,629 54 - ---------------------------------------------------------------------------------------------------------------------- 6,134,611 352 - ---------------------------------------------------------------------------------------------------------------------- Financial--5.7% 875M American General Finance Corp., 8.125%, 2009 1,064,314 61 CIT Group, Inc.: 300M 6.875%, 2009 341,768 19 1,900M 7.75%, 2012 2,258,669 130 400M Ford Motor Credit Co., 9.03%, 2009 416,996 24 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Financial (continued) General Electric Capital Corp.: $700M 7.875%, 2006 $814,152 $47 700M 8.5%, 2008 855,380 49 1,550M General Motors Acceptance Corp., 7.75%, 2010 1,707,925 98 Household Finance Corp.: 1,825M 6.5%, 2008 2,074,040 119 452M 7.75%, 2022 481,450 27 - ---------------------------------------------------------------------------------------------------------------------- 10,014,694 574 - ---------------------------------------------------------------------------------------------------------------------- Financial Services--11.0% Bank of America Corp.: 1,067M 7.8%, 2010 1,283,380 74 1,225M 7.4%, 2011 1,457,259 84 Bank One Corp.: 1,165M 7.6%, 2007 1,340,334 77 700M 7.875%, 2010 853,142 49 700M Chase Manhattan Corp., 7.875%, 2010 845,027 48 1,200M First Union National Bank, 7.8%, 2010 1,469,137 84 1,000M Fleet Capital Trust II, 7.92%, 2026 1,097,640 63 1,500M Florida Windstorm Underwriting Assoc., 7.125%, 2019 + 1,773,570 101 1,200M Greenpoint Bank, 9.25%, 2010 1,504,548 86 775M Huntington National Bank, 8%, 2010 947,242 54 795M Manufacturers & Traders Trust Co., 8%, 2010 972,801 56 288M NBD Bancorp, Inc., 7.125%, 2007 327,566 19 1,125M Old National Bank, 6.75%, 2011 1,257,239 72 800M PNC Funding Corp., 6.125%, 2009 903,981 52 750M Republic NY Corp., 7.75%, 2009 902,440 52 1,825M Washington Mutual, Inc., 8.25%, 2010 2,225,004 128 - ---------------------------------------------------------------------------------------------------------------------- 19,160,310 1,099 - ---------------------------------------------------------------------------------------------------------------------- Food/Beverage/Tobacco--3.9% Coca-Cola Enterprises, Inc.: 1,050M 7.125%, 2009 1,243,822 71 800M 7.125%, 2017 980,372 56 2,375M ConAgra Foods, Inc., 6.75%, 2011 2,735,345 156 700M Hershey Foods Corp., 6.7%, 2005 767,534 44 1,000M Pepsi Bottling Group, Inc., 7%, 2029 1,171,068 67 - ---------------------------------------------------------------------------------------------------------------------- 6,898,141 394 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS INVESTMENT GRADE FUND September 30, 2003 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Food/Drug--3.6% $1,550M Delhaize America, Inc., 8.125%, 2011 $1,712,750 $98 Kroger Co.: 700M 6.8%, 2018 805,140 46 1,600M 7%, 2018 1,844,525 106 Safeway, Inc.: 510M 7%, 2007 576,977 33 450M 9.3%, 2007 535,292 31 700M 6.5%, 2011 783,380 45 - ---------------------------------------------------------------------------------------------------------------------- 6,258,064 359 - ---------------------------------------------------------------------------------------------------------------------- Forest Products/Containers--3.4% International Paper Co.: 700M 8.125%, 2005 774,160 45 1,190M 6.75%, 2011 1,344,552 77 1,725M Sappi Papier Holding AG, 6.75%, 2012 + 1,915,133 110 Weyerhaeuser Co.: 1,100M 7.25%, 2013 1,257,880 72 545M 7.5%, 2013 631,450 36 - ---------------------------------------------------------------------------------------------------------------------- 5,923,175 340 - ---------------------------------------------------------------------------------------------------------------------- Gaming/Leisure--1.0% 750M MGM Mirage, Inc., 8.5%, 2010 847,500 48 750M Park Place Entertainment Corp., 9.375%, 2007 830,625 48 - ---------------------------------------------------------------------------------------------------------------------- 1,678,125 96 - ---------------------------------------------------------------------------------------------------------------------- Health Care--2.9% 1,080M Becton, Dickinson & Co., 7.15%, 2009 1,274,470 73 900M Columbia/HCA Healthcare, Inc., 7.5%, 2023 915,375 53 1,130M Tenet Healthcare Corp., 6.375%, 2011 1,087,625 62 1,500M Wyeth, 6.7%, 2011 1,716,632 98 - ---------------------------------------------------------------------------------------------------------------------- 4,994,102 286 - ---------------------------------------------------------------------------------------------------------------------- Manufacturing--2.2% 875M Ingersoll-Rand Co., 9%, 2021 1,135,610 65 1,600M Newell Rubbermaid, Inc., 6.75%, 2012 1,816,474 104 800M United Technologies Corp., 7.125%, 2010 953,566 55 - ---------------------------------------------------------------------------------------------------------------------- 3,905,650 224 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Media-Broadcasting--2.8% Comcast Cable Communications, Inc.: $1,300M 8.375%, 2007 $1,523,172 $87 850M 7.125%, 2013 980,335 56 1,480M Cox Enterprises, Inc., 8%, 2007 + 1,707,035 98 700M PanAmSat Corp., 6.375%, 2008 726,250 42 - ---------------------------------------------------------------------------------------------------------------------- 4,936,792 283 - ---------------------------------------------------------------------------------------------------------------------- Media-Diversified--4.6% 750M AOL Time Warner, Inc., 6.875%, 2012 843,184 48 500M Houghton Mifflin Co., 7.2%, 2011 533,750 31 700M New York Times Co., 7.625%, 2005 761,020 44 1,600M News America, Inc., 7.3%, 2028 1,806,165 104 1,000M Time Warner, Inc., 6.875%, 2018 1,112,616 64 Viacom, Inc.: 775M 7.75%, 2005 851,113 49 500M 8.625%, 2012 635,634 36 360M 8.875%, 2014 470,589 27 900M Walt Disney Co., 7.3%, 2005 966,080 55 - ---------------------------------------------------------------------------------------------------------------------- 7,980,151 458 - ---------------------------------------------------------------------------------------------------------------------- Metals/Mining--1.6% 1,446M Hanson PLC, 7.875%, 2010 1,725,153 99 950M Thiokol Corp., 6.625%, 2008 1,056,991 61 - ---------------------------------------------------------------------------------------------------------------------- 2,782,144 160 - ---------------------------------------------------------------------------------------------------------------------- Real Estate--8.6% 1,600M Archstone-Smith Trust, 7.9%, 2016 (REIT) 1,955,662 112 AvalonBay Communities, Inc. (REIT): 1,900M 7.5%, 2010 2,229,711 128 200M 6.625%, 2011 224,428 13 1,800M Boston Properties, Inc., 5%, 2015 (REIT) 1,738,363 100 1,350M Duke-Weeks Realty Corp., 7.75%, 2009 (REIT) 1,591,896 91 EOP Operating LP (REIT): 1,705M 8.1%, 2010 2,049,690 118 150M 7.25%, 2018 173,056 10 1,900M Mack-Cali Realty LP, 7.75%, 2011 (REIT) 2,247,349 129 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS INVESTMENT GRADE FUND September 30, 2003 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Real Estate (continued) Simon Property Group, Inc. (REIT): $1,875M 7.875%, 2016 + $2,268,823 $130 425M 7.375%, 2018 501,770 29 - ---------------------------------------------------------------------------------------------------------------------- 14,980,748 860 - ---------------------------------------------------------------------------------------------------------------------- Retail-General Merchandise--4.4% 1,750M Federated Department Stores, Inc., 7.45%, 2017 2,111,617 121 900M Lowe's Companies, Inc., 8.25%, 2010 1,119,722 64 800M RadioShack Corp., 7.375%, 2011 944,070 54 Target Corp.: 235M 5.375%, 2009 256,683 15 1,620M 7.5%, 2010 1,961,745 113 Wal-Mart Stores, Inc.: 700M 8%, 2006 816,197 47 400M 8.5%, 2024 438,870 25 - ---------------------------------------------------------------------------------------------------------------------- 7,648,904 439 - ---------------------------------------------------------------------------------------------------------------------- Services--2.2% 750M Allied Waste NA, Inc., 8.875%, 2008 815,625 47 ERAC USA Finance Enterprise Co.: 750M 9.125%, 2004 810,815 47 1,375M 7.35%, 2008 + 1,593,063 91 520M 8%, 2011 + 625,852 36 - ---------------------------------------------------------------------------------------------------------------------- 3,845,355 221 - ---------------------------------------------------------------------------------------------------------------------- Telecommunications--4.0% 500M Chesapeake & Potomac Telephone Co. of Maryland, 8.3%, 2031 634,196 36 1,200M Deutsche Telekom AG, 8.5%, 2010 1,470,196 85 GTE Corp.: 909M 6.84%, 2018 1,033,707 59 1,400M 7.9%, 2027 1,579,018 91 480M Qwest Services Corp., 13.5%, 2010 + 561,600 32 725M Sprint Capital Corp., 6.375%, 2009 789,318 45 750M Vodafone AirTouch PLC, 7.75%, 2010 906,465 52 - ---------------------------------------------------------------------------------------------------------------------- 6,974,500 400 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Transportation--6.4% $1,341M Attransco, Inc., 6.12%, 2008 + $1,463,484 $84 Burlington Northern Santa Fe Corp.: 725M 7.875%, 2007 853,788 49 700M 7.125%, 2010 833,982 48 700M 6.75%, 2011 811,122 47 Canadian National Railway Co.: 810M 6.45%, 2006 893,262 51 850M 7.375%, 2031 1,032,011 59 1,600M Norfolk Southern Corp., 7.7%, 2017 1,987,618 114 750M Southwest Airlines Co., 6.126%, 2006 830,555 48 1,700M Union Pacific Corp., 7.375%, 2009 2,006,694 115 300M Union Pacific Railroad, 7.28%, 2011 358,319 21 - ---------------------------------------------------------------------------------------------------------------------- 11,070,835 636 - ---------------------------------------------------------------------------------------------------------------------- Utilities--6.7% 700M Columbia Energy Group, 6.8%, 2005 764,355 44 Consumers Energy Co.: 735M 6.375%, 2008 806,904 46 1,500M 6.875%, 2018 1,758,360 101 1,000M DPL, Inc., 6.875%, 2011 1,032,850 59 1,650M Duke Capital Corp., 8%, 2019 1,852,516 107 500M Entergy Gulf States, Inc., 6.2%, 2033 + 466,803 27 547M Niagara Mohawk Holdings, Inc., 7.625%, 2005 603,168 35 600M NiSource Finance Corp., 7.875%, 2010 716,318 41 1,350M PP&L Capital Funding, Inc., 8.375%, 2007 1,576,712 90 775M PSI Energy, Inc., 8.85%, 2022 1,043,330 60 900M Wisconsin Power & Light Co., 7%, 2007 1,017,283 58 - ---------------------------------------------------------------------------------------------------------------------- 11,638,599 668 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Corporate Bonds (cost $136,936,840) 148,659,361 8,527 - ---------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS--5.0% U.S. Treasury Notes: 1,000M 7.875%, 2004 1,075,508 62 2,000M 6.625%, 2007 2,303,986 132 1,300M 6%, 2009 1,502,466 86 3,300M 6.5%, 2010 3,917,077 225 - ---------------------------------------------------------------------------------------------------------------------- Total Value of U.S. Government Obligations (cost $8,546,965) 8,799,037 505 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS INVESTMENT GRADE FUND September 30, 2003 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested Principal For Each Amount $10,000 of or Shares Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- PASS THROUGH CERTIFICATES--4.2% Real Estate--.9% $1,387M FDA Queens LP, 6.99%, 2017 $1,598,150 $92 - ---------------------------------------------------------------------------------------------------------------------- Transportation--3.3% 779M American Airlines, Inc., 7.377%, 2019 476,477 27 446M Canadian National Railway Co., 7.195%, 2016 521,689 30 Continental Airlines, Inc.: 535M 6.748%, 2017 392,492 23 1,525M 8.388%, 2020 1,133,229 65 1,268M FedEx Corp., 7.5%, 2018 1,486,740 85 738M NorthWest Airlines, Inc., 8.072%, 2019 822,821 47 1,028M NWA Trust, 10.23%, 2012 817,321 47 - ---------------------------------------------------------------------------------------------------------------------- 5,650,769 324 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Pass Through Certificates (cost $8,135,426) 7,248,919 416 - ---------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS--1.0% 1,600M Fannie Mae, 6.125%, 2012 (cost $1,738,750) 1,820,496 104 - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--.9% Virginia State Housing Development Authority: 800M 6.51%, 2019, Series "A" 832,704 48 710M 7%, 2022, Series "M" 789,698 45 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $1,474,294) 1,622,402 93 - ---------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--.1% Information Technology Allstream, Inc.: 83 * Class "A" 3,219 -- 4,476 * Class "B" 174,788 10 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $123,500) 178,007 10 - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--1.0% $1,700M Fannie Mae, 1%, 10/6/03 (cost $1,699,764) 1,699,764 97 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE NOTES--.3% $500M ChevronTexaco Corp., 1.02%, 10/6/03 (cost $499,929) $499,929 $29 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $159,155,468) 97.8% 170,527,915 9,781 Other Assets, Less Liabilities 2.2 3,811,773 219 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $174,339,688 $10,000 ====================================================================================================================== * Non-income producing + See Note 4 See notes to financial statements
Portfolio Managers' Letter FIRST INVESTORS FUND FOR INCOME, INC. Dear Investor: This is the annual report for the First Investors Fund For Income for the fiscal year ended September 30, 2003. During the period, the Fund's return on a net asset value basis was 25.8% for Class A shares and 25.2% for Class B shares, including dividends of 24 cents per share on Class A shares and 22 cents per share on Class B shares. The rebound in the overall high yield market, after several poor years, had the greatest influence on the Fund's performance. The high yield rally started shortly after the beginning of the reporting period and ran more or less uninterrupted with only a brief dip in July. A low, albeit volatile interest rate environment, declining default rates and improving business fundamentals associated with a strengthening economy caused a return of confidence in the high yield market. Risk taking was generally rewarded, as the lowest-rated names generally outperformed middle-rated and higher-rated high yield bonds. The top contributors to the Fund's performance during the period were those securities and sectors that rebounded from low prices as a result of better liquidity, renewed investor confidence or improved results. In particular, the cable television sector, which had been under heavy pressure from investors, recovered significantly during the reporting period. The Fund's holdings in Cablevisions Systems, Charter Communications and Adelphia Communications all aided performance. The Fund's performance was hurt by some investments whose issuing company failed or remained distressed. These included Texas Petrochemicals, AES Drax, and DeCrane Aircraft. Texas Petrochemicals and AES Drax defaulted during the year. DeCrane, which makes aircraft interiors, declined with the downturn in aircraft manufacturing, particularly among business jets. The Fund's performance was also hurt by an underweight of utilities industry holdings, as the sector recovered from distressed levels during the year. In addition, investments that merely "earned their coupon" during the year served as a drag on the Fund's performance. These included investments that were not considered troubled, high-coupon, short-dated bonds and some low-coupon bonds purchased later in the year. Thank you for placing your trust in First Investors. As always, we appreciate the opportunity to serve your investment needs. Sincerely, /S/ RICHARD T. BOURKE Richard T. Bourke Co-Portfolio Manager /S/ GREG MILLER Greg Miller Co-Portfolio Manager October 31, 2003 Cumulative Performance Information FIRST INVESTORS FUND FOR INCOME, INC. Comparison of change in value of $10,000 investment in the First Investors Fund For Income, Inc. (Class A shares) and the CS First Boston High Yield Index. FUND FOR INCOME GRAPH PLOTS As of September 30, 2003 FIRST INVESTORS CS FIRST BOSTON FUND FOR INCOME HIGH YIELD INDEX DEC 93 $ 9,425 $10,000 DEC 94 9,489 9,903 DEC 95 11,248 11,624 DEC 96 12,756 13,068 DEC 97 14,366 14,718 SEP 98 14,367 14,409 SEP 99 14,850 14,978 SEP 00 15,255 15,266 SEP 01 13,699 14,513 SEP 02 13,491 14,927 SEP 03 16,969 19,114 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 25.78% 18.60% Five Years 3.29% 2.09% Ten Years 6.50% 5.87% S.E.C. 30-Day Yield 7.49% Class B Shares One Year 25.24% 21.24% Five Years 2.63% 2.27% Since Inception (1/12/95) 6.14% 6.14% S.E.C. 30-Day Yield 7.23% The graph compares a $10,000 investment in the First Investors Fund For Income, Inc. (Class A shares) beginning 12/31/93 with a theoretical investment in the CS First Boston High Yield Index (the "Index"). The Index is designed to measure the performance of the high yield bond market. As of 9/30/03, the Index consisted of 1,633 different issues, most of which were cash pay, but also included in the Index were zero-coupon bonds, step bonds, payment-in-kind bonds and bonds which were in default. As of 9/30/03, approximately 6.8% of the market value of the Index was in default. The bonds included in the Index had an average life of 7.0 years, an average maturity of 7.3 years, an average duration of 4.0 years and an average coupon of 9.2%. It is not possible to invest directly in this Index. In addition, the Index does not take into account fees and expenses that an investor would incur in purchasing securities in the Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 9/30/03) include the reinvestment of all dividends and distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). Results represent past performance and do not indicate future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The issuers of the high yield bonds, in which the Fund primarily invests, pay higher interest rates because they have a greater likelihood of financial difficulty, which could result in their inability to repay the bonds fully when due. Prices of high yield bonds are also subject to greater fluctuations. CS First Boston High Yield Index figures are from CS First Boston Corporation and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments FIRST INVESTORS FUND FOR INCOME, INC. September 30, 2003 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- CORPORATE BONDS--85.6% Aerospace/Defense--2.4% $3,450M Alliant Techsystems, Inc., 8.5%, 2011 $3,777,750 $69 3,000M DeCrane Aircraft Holdings, Inc., 12%, 2008 1,425,000 26 2,700M GenCorp, Inc., 9.5%, 2013 + 2,781,000 51 L-3 Communications Corp.: 3,000M 8%, 2008 3,131,250 57 1,600M 7.625%, 2012 1,740,000 32 - ---------------------------------------------------------------------------------------------------------------------- 12,855,000 235 - ---------------------------------------------------------------------------------------------------------------------- Automotive--7.1% 6,725M Accuride Corp., 9.25%, 2008 6,741,812 122 3,400M Asbury Automotive Group, Inc., 9%, 2012 3,417,000 63 4,208M Cambridge Industries Liquidating Trust ++ ** 42,084 1 6,800M Collins & Aikman Products Co., 11.5%, 2006 5,338,000 98 5,450M Dana Corp., 9%, 2011 5,995,000 110 5,500M Delco Remy International, Inc., 11%, 2009 5,032,500 92 2,500M Special Devices, Inc., 11.375%, 2008 2,265,625 41 5,250M TRW Automotive, Inc., 9.375%, 2013 + 5,932,500 109 3,600M United Components, Inc., 9.375%, 2013 + 3,762,000 69 - ---------------------------------------------------------------------------------------------------------------------- 38,526,521 705 - ---------------------------------------------------------------------------------------------------------------------- Chemicals--8.0% 3,150M Equistar Chemicals LP, 10.625%, 2011 + 3,134,250 57 450M Ethyl Corp., 8.875%, 2010 463,500 8 3,500M FMC Corp., 10.25%, 2009 4,007,500 73 2,600M Huntsman, LLC, 11.625%, 2010 + 2,548,000 47 7,000M IMC Global, Inc., 10.875%, 2013 + 7,280,000 133 8,000M Lyondell Chemical Co., 10.875%, 2009 7,160,000 131 4,375M Millennium America, Inc., 9.25%, 2008 4,560,938 84 3,250M Noveon, Inc., 11%, 2011 3,688,750 68 900M Omnova Solutions, Inc., 11.25%, 2010 + 958,500 18 8,500M Terra Capital, Inc., 11.5%, 2010 7,862,500 145 4,500M Texas Petrochemicals Corp., 11.125%, 2006 ++ 1,282,500 23 900M Westlake Chemical Corp., 8.75%, 2011 + 938,250 17 - ---------------------------------------------------------------------------------------------------------------------- 43,884,688 804 - ---------------------------------------------------------------------------------------------------------------------- Consumer Non-Durables--3.2% 3,420M AKI, Inc., 10.5%, 2008 3,608,100 66 1,707M Chattem, Inc., 8.875%, 2008 1,715,535 31 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS FUND FOR INCOME, INC. September 30, 2003 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Consumer Non-Durables (continued) $2,500M GFSI, Inc., 9.625%, 2007 $2,162,500 $40 3,350M Hines Horticulture, Inc., 12.75%, 2005 3,567,750 65 4,000M Playtex Products, Inc., 9.375%, 2011 3,860,000 71 2,500M Remington Arms Co., 10.5%, 2011 2,575,000 47 - ---------------------------------------------------------------------------------------------------------------------- 17,488,885 320 - ---------------------------------------------------------------------------------------------------------------------- Energy--9.6% 7,000M Bluewater Finance, Ltd., 10.25%, 2012 7,140,000 131 4,500M Chesapeake Energy Corp., 9%, 2012 5,085,000 93 5,050M Compagnie Generale de Geophysique, 10.625%, 2007 5,353,000 98 4,075M Dresser, Inc., 9.375%, 2011 4,299,125 79 13,750M El Paso Production Holding Co., 7.75%, 2013 + 13,131,250 240 1,800M Energy Partners, Ltd., 8.75%, 2010 + 1,854,000 34 Giant Industries, Inc.: 1,730M 9%, 2007 1,686,750 31 8,500M 11%, 2012 8,415,000 154 Tesoro Petroleum Corp.: 3,900M 9%, 2008 3,822,000 70 1,750M 9.625%, 2008 1,750,000 32 - ---------------------------------------------------------------------------------------------------------------------- 52,536,125 962 - ---------------------------------------------------------------------------------------------------------------------- Food/Beverage/Tobacco--2.2% 5,000M Canandaigua Brands, Inc., 8.5%, 2009 5,300,000 97 250M Domino's, Inc., 8.25%, 2011 + 265,313 5 5,500M Land O'Lakes, Inc., 8.75%, 2011 4,647,500 85 1,550M Pilgrim's Pride Corp., 9.625%, 2011 1,681,750 31 250M Reddy Ice Group, Inc., 8.875%, 2011 + 262,813 5 - ---------------------------------------------------------------------------------------------------------------------- 12,157,376 223 - ---------------------------------------------------------------------------------------------------------------------- Food/Drug--2.6% 6,500M Di Giorgio Corp., 10%, 2007 6,483,750 119 4,000M Ingles Markets, Inc., 8.875%, 2011 4,060,000 74 3,500M Roundy's, Inc., 8.875%, 2012 3,675,000 67 - ---------------------------------------------------------------------------------------------------------------------- 14,218,750 260 - ---------------------------------------------------------------------------------------------------------------------- Forest Products/Containers--4.5% 9,300M AEP Industries, Inc., 9.875%, 2007 9,160,500 168 4,000M Potlatch Corp., 10%, 2011 4,460,000 82 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Forest Products/Containers (continued) $4,300M Stone Container Corp., 9.75%, 2011 $4,708,500 $86 3,625M Tekni-Plex, Inc., 12.75%, 2010 3,570,625 65 2,600M Tembec Industries, Inc., 8.5%, 2011 2,548,000 47 - ---------------------------------------------------------------------------------------------------------------------- 24,447,625 448 - ---------------------------------------------------------------------------------------------------------------------- Gaming/Leisure--2.8% 2,250M Circus & Eldorado/Silver Legacy, 10.125%, 2012 2,250,000 41 4,550M Isle of Capri Casinos, Inc., 8.75%, 2009 4,845,750 88 3,000M John Q. Hammons Hotels, LP, 8.875%, 2012 3,262,500 60 2,445M Outboard Marine Corp., 10.75%, 2008 ++ ** 3,055 -- Park Place Entertainment Corp.: 3,500M 9.375%, 2007 3,876,250 71 500M 7%, 2013 519,375 10 500M Royal Caribbean Cruises, Ltd., 8%, 2010 530,000 10 - ---------------------------------------------------------------------------------------------------------------------- 15,286,930 280 - ---------------------------------------------------------------------------------------------------------------------- Health Care--7.4% 4,176M Advanced Medical Optics, Inc., 9.25%, 2010 4,593,600 84 955M ALARIS Medical Systems, Inc., 7.25%, 2011 964,550 18 900M Fisher Scientific International, Inc., 8.125%, 2012 960,750 18 4,400M Genesis Health Ventures, Inc., 9.75%, 2005 ++ ** 89,760 2 4,000M Insight Health Services Corp., 9.875%, 2011 4,250,000 78 500M Medex, Inc., 8.875%, 2013 + 531,250 10 4,500M MedQuest, Inc., 11.875%, 2012 4,770,000 86 2,800M Owens & Minor, Inc., 8.5%, 2011 3,087,000 57 3,600M PerkinElmer, Inc., 8.875%, 2013 3,942,000 72 1,725M Quintiles Transnational Corp., 10%, 2013 + 1,789,688 33 3,500M Rotech Healthcare, Inc., 9.5%, 2012 3,710,000 68 12,400M Tenet Healthcare Corp., 6.375%, 2011 11,935,000 218 - ---------------------------------------------------------------------------------------------------------------------- 40,623,598 744 - ---------------------------------------------------------------------------------------------------------------------- Housing--2.2% 3,150M Integrated Electrical Services, Inc., 9.375%, 2009 3,260,250 60 Nortek, Inc.: 4,000M 9.125%, 2007 4,140,000 76 1,500M 9.875%, 2011 1,593,750 29 2,700M William Lyon Homes, Inc., 10.75%, 2013 2,943,000 54 - ---------------------------------------------------------------------------------------------------------------------- 11,937,000 219 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS FUND FOR INCOME, INC. September 30, 2003 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Information Technology--1.0% $3,100M ChipPac International, Ltd., 12.75%, 2009 $3,472,000 $64 3,000M Exodus Communications, Inc., 10.75%, 2009 ++ ** 3,750 -- Iron Mountain, Inc.: 1,000M 8.625%, 2013 1,070,000 20 1,000M 6.625%, 2016 952,500 17 - ---------------------------------------------------------------------------------------------------------------------- 5,498,250 101 - ---------------------------------------------------------------------------------------------------------------------- Investment/Finance Companies--.9% 2,600M Finova Group, Inc., 7.5%, 2009 1,300,000 24 3,400M General Motors Acceptance Corp., 4.5%, 2006 3,474,633 63 - ---------------------------------------------------------------------------------------------------------------------- 4,774,633 87 - ---------------------------------------------------------------------------------------------------------------------- Manufacturing--2.6% Columbus McKinnon Corp.: 3,500M 8.5%, 2008 3,097,500 56 500M 10%, 2010 + 528,750 10 2,500M Day International Group, Inc., 11.125%, 2005 2,543,400 47 1,800M Eagle-Picher Industries, Inc., 9.75%, 2013 + 1,899,000 35 6,000M Wolverine Tube, Inc., 10.5%, 2009 6,060,000 111 - ---------------------------------------------------------------------------------------------------------------------- 14,128,650 259 - ---------------------------------------------------------------------------------------------------------------------- Media-Broadcasting--1.7% 3,000M Sinclair Broadcasting Group, Inc., 8.75%, 2011 3,277,500 60 Young Broadcasting Corp.: 2,700M 8.75%, 2007 2,754,000 50 2,920M 10%, 2011 3,109,800 57 - ---------------------------------------------------------------------------------------------------------------------- 9,141,300 167 - ---------------------------------------------------------------------------------------------------------------------- Media-Cable TV--8.9% 2,275M Adelphia Communications Corp., 10.25%, 2011 ++ 1,638,000 30 2,000M Century Communications Corp., 9.5%, 2005 ++ 1,410,000 26 Charter Communications Holdings, LLC: 6,500M 10%, 2009 5,167,500 95 1,000M 10.75%, 2009 822,500 15 2,000M 10.25%, 2010 1,570,000 29 5,800M 0%-9.92%, 2011 4,132,500 76 7,650M Diva Systems Corp., 12.625%, 2008 ++ 650,250 12 12,200M Echostar DBS Corp., 9.375%, 2009 13,069,250 238 5,476M Loral Cyberstar, Inc., 10%, 2006 ++ 3,367,740 62 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Media-Cable TV (continued) Mediacom LLC/Mediacom Capital Corp.: $6,500M 8.5%, 2008 $6,142,500 $112 4,000M 7.875%, 2011 3,650,000 67 2,000M 9.5%, 2013 1,905,000 35 4,300M Quebecor Media, Inc., 11.125%, 2011 4,923,500 90 - ---------------------------------------------------------------------------------------------------------------------- 48,448,740 887 - ---------------------------------------------------------------------------------------------------------------------- Media -Diversified--4.1% 3,890M Carmike Cinemas, Inc., 10.375%, 2009 4,103,950 75 400M CBD Media, LLC, 8.625%, 2011 + 427,000 8 250M Dex Media Finance/West, 8.5%, 2010 + 273,125 5 4,000M Garden State Newspapers, Inc., 8.625%, 2011 4,220,000 77 6,645M Mail-Well I Corp., 8.75%, 2008 6,545,325 120 1,500M R.H. Donnelley Financial Corp., 10.875%, 2012 + 1,777,500 33 3,400M Universal City Development Partners, Ltd., 11.75%, 2010 + 3,842,000 70 1,000M Vivendi Universal SA, 9.25%, 2010 + 1,153,750 21 - ---------------------------------------------------------------------------------------------------------------------- 22,342,650 409 - ---------------------------------------------------------------------------------------------------------------------- Metals/Mining--1.0% 3,728M Commonwealth Aluminum Corp., 10.75%, 2006 3,760,620 69 1,840M Euramax International, Inc., 8.5%, 2011 + 1,913,600 35 3,000M Murrin Murrin Holdings Property, Ltd., 9.375%, 2007 ++ ** 3,750 -- - ---------------------------------------------------------------------------------------------------------------------- 5,677,970 104 - ---------------------------------------------------------------------------------------------------------------------- Retail-General Merchandise--1.5% 3,204M Big 5 Corp., 10.875%, 2007 3,384,225 62 4,000M Michaels Stores, Inc., 9.25%, 2009 4,400,000 81 250M Phillips Van-Heusen Corp., 8.125%, 2013 + 263,125 5 - ---------------------------------------------------------------------------------------------------------------------- 8,047,350 148 - ---------------------------------------------------------------------------------------------------------------------- Services--5.6% Allied Waste NA, Inc.: 10,000M 10%, 2009 10,887,500 199 2,700M 9.25%, 2012 2,997,000 55 1,800M 7.875%, 2013 1,894,500 35 5,350M Hydrochem Industrial Services, Inc., 10.375%, 2007 3,771,750 69 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS FUND FOR INCOME, INC. September 30, 2003 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Services (continued) $1,000M IESI Corp., 10.25%, 2012 $1,090,000 $20 5,825M Kindercare Learning Centers, Inc., 9.5%, 2009 5,883,250 108 United Rentals, Inc.: 2,000M 9%, 2009 2,080,000 38 2,000M 9.25%, 2009 2,080,000 38 - ---------------------------------------------------------------------------------------------------------------------- 30,684,000 562 - ---------------------------------------------------------------------------------------------------------------------- Telecommunications--1.9% 4,000M Adelphia Business Solutions, Inc., 13%, 2003 ++ 420,000 8 6,050M E. Spire Communications, Inc., 13%, 2005 ++ 605 -- 2,400M ICG Services, Inc., 10%, 2008 ++ ** 3,000 -- 6,350M Pac-West Telecommunications, Inc., 13.5%, 2009 5,556,250 102 RCN Corp.: 9,000M 11.125%, 2007 4,320,000 79 300M 11%, 2008 141,000 2 5,500M Viatel, Inc., 12.5%, 2008 ++ ** 3,602 -- 4,000M Worldwide Fiber, Inc., 12%, 2009 ++ 400 -- XO Communications, Inc.: 2,750M 9.45%, 2008 ++ ** 3,438 -- 7,000M 12.5%, 2006 ++ ** 8,750 -- - ---------------------------------------------------------------------------------------------------------------------- 10,457,045 191 - ---------------------------------------------------------------------------------------------------------------------- Transportation--.9% 2,700M General Maritime Corp., 10%, 2013 3,030,750 55 1,750M Overseas Shipholding Group, Inc., 8.25%, 2013 1,837,500 34 - ---------------------------------------------------------------------------------------------------------------------- 4,868,250 89 - ---------------------------------------------------------------------------------------------------------------------- Utilities--.0% 5,500M AES Drax Energy, Ltd., 11.5%, 2010 ++ 68,750 1 - ---------------------------------------------------------------------------------------------------------------------- Wireless Communications--3.5% 5,000M Crown Castle International Corp., 9.375%, 2011 5,362,500 98 5,500M Nextel Communications, Inc., 9.95%, 2008 5,809,375 106 Triton Communications, LLC: 3,500M 8.75%, 2011 3,508,750 64 4,350M 8.5%, 2013 4,687,125 86 - ---------------------------------------------------------------------------------------------------------------------- 19,367,750 354 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Corporate Bonds (cost $511,249,394) 467,467,836 8,559 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested Shares or For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- PREFERRED STOCKS--3.7% Consumer Non-Durables--.0% 7,714 * Worldtex, Inc., 12%** $146,566 $3 - ---------------------------------------------------------------------------------------------------------------------- Financial--.2% 40,800 Astoria Financial Corp., 12%, 2013, Series "B" 1,111,800 20 - ---------------------------------------------------------------------------------------------------------------------- Health Care--.0% 115 * Leiner Health Products, Inc., 9.625%, 2007 ** 1 -- - ---------------------------------------------------------------------------------------------------------------------- Media - Cable TV--3.5% 180,793 CSC Holdings, Inc., 11.125%, 2008, Series "M" 18,938,083 347 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Preferred Stocks (cost $20,048,457) 20,196,450 370 - ---------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS--2.1% U.S. Treasury Notes: $5,500M 7.25%, 2004 5,795,845 106 5,000M 7%, 2006 5,697,660 105 - ---------------------------------------------------------------------------------------------------------------------- Total Value of U.S. Government Obligations (cost $10,685,424) 11,493,505 211 - ---------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--.6% Automotive--.0% 37,387 * Safelite Glass Corp. - Class "B" + ** 224,322 4 2,523 * Safelite Realty Corp. ** 25 -- - ---------------------------------------------------------------------------------------------------------------------- 224,347 4 - ---------------------------------------------------------------------------------------------------------------------- Consumer Non-Durables--.0% 25,200 * Worldtex, Inc. ** 252 -- - ---------------------------------------------------------------------------------------------------------------------- Media - Cable TV--.3% 41,221 * Echostar Communications Corp.-- Class "A" 1,577,528 29 - ---------------------------------------------------------------------------------------------------------------------- Telecommunications--.3% 5,805 * ICG Communications, Inc. 40,635 1 32,386 * NTL, Inc. 1,526,028 28 18,224 * World Access, Inc. 26 -- - ---------------------------------------------------------------------------------------------------------------------- 1,566,689 29 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $10,208,553) 3,368,816 62 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS FUND FOR INCOME, INC. September 30, 2003 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Units or $10,000 of Warrants Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- UNITS--.5% Metals/Mining 2,500 Russel Metals, Inc. (cost $2,500,000) *** $2,675,000 $49 - ---------------------------------------------------------------------------------------------------------------------- WARRANTS--.0% Aerospace/Defense--.0% 3,000 * DeCrane Aircraft Holdings, Inc. (expiring 9/30/08) + 30 -- - ---------------------------------------------------------------------------------------------------------------------- Automotive--.0% 91,625 * Safelite Glass Corp. - Class "A" (expiring 9/29/06) + ** 916 -- 61,084 * Safelite Glass Corp. - Class "B" (expiring 9/29/07) + ** 611 -- - ---------------------------------------------------------------------------------------------------------------------- 1,527 -- - ---------------------------------------------------------------------------------------------------------------------- Media - Cable TV--.0% 22,950 * Diva Systems Corp. (expiring 3/1/08) + 230 -- 54,020 * Loral Cyberstar, Inc. (expiring 12/26/06) 540 -- - ---------------------------------------------------------------------------------------------------------------------- 770 -- - ---------------------------------------------------------------------------------------------------------------------- Telecommunications--.0% 11,500 * E. Spire Communications, Inc. (expiring 11/1/05) + ** -- -- 3,500 * GT Group Telecom, Inc. (expiring 2/1/10) + 2,625 -- 5,600 * Powertel, Inc. (expiring 2/1/06) ** 117,111 2 - ---------------------------------------------------------------------------------------------------------------------- 119,736 2 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Warrants (cost $5,065,967) 122,063 2 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--2.6% $14,100M Fannie Mae, 1%, 10/6/03 (cost $14,098,041) $14,098,041 $258 - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE NOTES--2.1% 11,595M Coca-Cola Co., 1%, 10/3/03 (cost $11,594,356) 11,594,356 212 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $585,450,192) 97.2% 531,016,067 9,723 Other Assets, Less Liabilities 2.8 15,152,358 277 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $546,168,425 $10,000 ====================================================================================================================== + See Note 4 ++ In default as to principal and/or interest payment * Non-income producing ** Security valued at fair value (see Note 1A) *** Each unit consists of one Russel Metals, Inc. $600 principal amount guaranteed senior note 10%, due 2009 and one Russel Metals, Inc. USA LLC $400 principal amount guaranteed senior note 10%, due 2009. See notes to financial statements
FIRST INVESTORS FUND FOR INCOME, INC. The dollar weighted average of credit ratings of all bonds held by the Fund during the fiscal year ended September 30, 2003 and the dollar weighted average of the total of the Fund's investments in step bonds and pay-in-kind bonds during the 2003 fiscal year, computed on a monthly basis, are set forth below. This information reflects the average composition of the Fund's assets during the 2003 fiscal year and is not necessarily representative of the Fund as of the end of its 2003 fiscal year, the current fiscal year or at any other time in the future. - -------------------------------------------------------------------- Comparable Quality of Rated by Unrated Securities to Moody's Bonds Rated by Moody's - -------------------------------------------------------------------- Aaa 3.01% 0.00% Baa1 0.00 0.00 Baa2 0.58 0.00 Baa3 0.00 0.00 Ba1 3.45 0.00 Ba2 3.28 0.00 Ba3 10.86 0.00 B1 9.50 0.00 B2 30.30 0.00 B3 25.00 0.00 Caa1 6.42 0.00 Caa2 0.55 0.00 Caa3 1.14 0.00 Ca 3.35 1.14 C 0.03 1.39 - -------------------------------------------------------------------- Step Bonds 4.33% Pay-in-kind Bonds .02% See notes to financial statements This page intentionally left blank.
Statement of Assets and Liabilities FIRST INVESTORS September 30, 2003 CASH INVESTMENT MANAGEMENT GOVERNMENT GRADE INCOME ------------ ------------ ------------ ------------ Assets Investments in securities: At identified cost $183,736,962 $203,357,018 $159,155,468 $585,450,192 ============ ============ ============ ============ At value (Note 1A) $183,736,962 $206,929,991 $170,527,915 $531,016,067 Cash 1,566,772 429,951 2,251,496 614,061 Receivables: Interest and dividends 323,700 972,773 2,857,756 13,207,796 Shares sold -- 286,801 697,162 552,088 Investment securities sold -- 1,143,897 -- 2,701,201 Other assets 24,200 27,482 64 232,843 ------------ ------------ ------------ ------------ Total Assets 185,651,634 209,790,895 176,334,393 548,324,056 ------------ ------------ ------------ ------------ Liabilities Payables: Investment securities purchased -- 3,779,002 1,473,755 500,000 Dividends payable 9,987 82,891 89,149 805,528 Shares redeemed 208,444 468,236 294,309 357,475 Accrued advisory fees 81,675 107,977 89,109 346,910 Accrued expenses 105,814 74,014 48,383 145,718 ------------ ------------ ------------ ------------ Total Liabilities 405,920 4,512,120 1,994,705 2,155,631 ------------ ------------ ------------ ------------ Net Assets $185,245,714 $205,278,775 $174,339,688 $546,168,425 ============ ============ ============ ============ Net Assets Consist of: Capital paid in $185,245,714 $206,679,875 $167,689,920 $723,056,319 Undistributed net investment income (deficit) -- 47,132 (1,073,397) (1,481,783) Accumulated net realized loss on investments -- (5,021,205) (3,649,282) (120,971,986) Net unrealized appreciation (depreciation) in value of investments -- 3,572,973 11,372,447 (54,434,125) ------------ ------------ ------------ ------------ Total $185,245,714 $205,278,775 $174,339,688 $546,168,425 ============ ============ ============ ============ Net Assets: Class A $179,440,987 $184,368,381 $143,617,659 $509,213,688 Class B $ 5,804,727 $ 20,910,394 $ 30,722,029 $ 36,954,737 Shares outstanding (Note 6): Class A 179,440,987 16,300,098 13,963,854 166,752,255 Class B 5,804,727 1,849,860 2,988,003 12,132,730 Net asset value and redemption price per share - Class A $ 1.00* $11.31 $10.28 $ 3.05 ====== ====== ====== ====== Maximum offering price per share - Class A (Net asset value/.9425)** N/A $12.00 $10.91 $ 3.24 ====== ====== ====== ====== Net asset value and offering price per share - Class B (Note 6) $ 1.00 $11.30 $10.28 $ 3.05 ====== ====== ====== ====== * Also maximum offering price per share. ** On purchases of $100,000 or more, the sales charge is reduced.
See notes to financial statements
Statement of Operations FIRST INVESTORS Year Ended September 30, 2003 CASH INVESTMENT MANAGEMENT GOVERNMENT GRADE INCOME ------------ ------------ ------------ ------------ Investment Income Income: Interest $ 2,739,594 $ 10,086,835 $ 8,902,562 $ 44,685,778 Dividends (Note 1F) -- -- -- 2,133,724 ------------ ------------ ------------ ------------ Total Income 2,739,594 10,086,835 8,902,562 46,819,502 ------------ ------------ ------------ ------------ Expenses (Notes 1 and 3): Advisory fees 981,023 2,016,328 1,122,758 3,545,679 Distribution plan expenses - Class A -- 456,596 307,246 1,356,040 Distribution plan expenses - Class B 35,076 202,356 268,028 304,822 Shareholder servicing costs 685,072 470,952 379,488 1,113,941 Professional fees 49,292 44,449 29,900 79,918 Custodian fees 34,450 34,681 20,682 49,404 Reports to shareholders 64,954 37,778 24,301 98,795 Other expenses 81,111 86,018 68,498 106,735 ------------ ------------ ------------ ------------ Total expenses 1,930,978 3,349,158 2,220,901 6,655,334 Less: Expenses waived or assumed (372,240) (963,316) (370,846) -- Custodian fees paid indirectly (1,477) (2,955) (2,948) (8,251) ------------ ------------ ------------ ------------ Net expenses 1,557,261 2,382,887 1,847,107 6,647,083 ------------ ------------ ------------ ------------ Net investment income 1,182,333 7,703,948 7,055,455 40,172,419 ------------ ------------ ------------ ------------ Realized and Unrealized Gain (Loss) on Investments (Note 2): Net realized gain (loss) on investments -- 8,408 (1,287,197) (40,988,935) Net unrealized appreciation (depreciation) of investments -- (1,789,098) 7,336,387 110,648,829 ------------ ------------ ------------ ------------ Net gain (loss) on investments -- (1,780,690) 6,049,190 69,659,894 ------------ ------------ ------------ ------------ Net Increase in Net Assets Resulting from Operations $ 1,182,333 $ 5,923,258 $ 13,104,645 $109,832,313 ============ ============ ============ ============
See notes to financial statements
Statement of Changes in Net Assets FIRST INVESTORS CASH MANAGEMENT GOVERNMENT ----------------------------- ----------------------------- Year Ended September 30 2003 2002 2003 2002 ------------ ------------ ------------ ------------ Increase (Decrease) in Net Assets From Operations Net investment income $ 1,182,333 $ 2,832,709 $ 7,703,948 $ 8,088,326 Net realized gain on investments -- -- 8,408 873,160 Net unrealized appreciation (depreciation) of investments -- -- (1,789,098) 636,234 ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 1,182,333 2,832,709 5,923,258 9,597,720 ------------ ------------ ------------ ------------ Dividends to Shareholders Net investment income - Class A (1,179,371) (2,805,379) (8,582,301) (7,695,114) Net investment income - Class B (2,962) (27,330) (801,350) (426,932) ------------ ------------ ------------ ------------ Total dividends (1,182,333) (2,832,709) (9,383,651) (8,122,046) ------------ ------------ ------------ ------------ Share Transactions* Class A: Proceeds from shares sold 234,463,530 276,335,247 46,898,620 43,757,168 Reinvestment of dividends 1,159,375 3,215,622 7,221,886 6,825,231 Cost of shares redeemed (248,896,616) (290,857,507) (35,011,833) (20,665,820) ------------ ------------ ------------ ------------ (13,273,711) (11,306,638) 19,108,673 29,916,579 ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 5,714,577 5,418,523 10,300,873 11,122,298 Reinvestment of dividends 2,815 32,067 740,287 414,467 Cost of shares redeemed (5,696,499) (3,940,787) (6,071,287) (1,549,612) ------------ ------------ ------------ ------------ 20,893 1,509,803 4,969,873 9,987,153 ------------ ------------ ------------ ------------ Net increase (decrease) from share transactions (13,252,818) (9,796,835) 24,078,546 39,903,732 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets (13,252,818) (9,796,835) 20,618,153 41,379,406 Net Assets Beginning of year 198,498,532 208,295,367 184,660,622 143,281,216 ------------ ------------ ------------ ------------ End of year+ $185,245,714 $198,498,532 $205,278,775 $184,660,622 ============ ============ ============ ============ +Includes undistributed net investment income of $ -- $ -- $ 47,132 $ 63,291 ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 234,463,530 276,335,247 4,098,534 3,850,343 Issued for dividends reinvested 1,159,375 3,215,622 633,021 600,767 Redeemed (248,896,616) (290,857,507) (3,071,484) (1,823,040) ------------ ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding (13,273,711) (11,306,638) 1,660,071 2,628,070 ============ ============ ============ ============ Class B: Sold 5,714,577 5,418,523 899,737 977,294 Issued for dividends reinvested 2,815 32,067 64,938 36,479 Redeemed (5,696,499) (3,940,787) (533,219) (135,957) ------------ ------------ ------------ ------------ Net increase in Class B shares outstanding 20,893 1,509,803 431,456 877,816 ============ ============ ============ ============
See notes to financial statements
Statement of Changes in Net Assets FIRST INVESTORS INVESTMENT GRADE INCOME ----------------------------- ----------------------------- Year Ended September 30 2003 2002 2003 2002 ------------ ------------ ------------ ------------ Increase (Decrease) in Net Assets From Operations Net investment income $ 7,055,455 $ 5,425,493 $ 40,172,419 $ 39,664,668 Net realized loss on investments (1,287,197) (386,408) (40,988,935) (37,103,041) Net unrealized appreciation (depreciation) of investments 7,336,387 1,798,504 110,648,829 (8,428,785) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations 13,104,645 6,837,589 109,832,313 (5,867,158) ------------ ------------ ------------ ------------ Dividends to Shareholders Net investment income - Class A (6,630,609) (4,810,730) (38,529,726) (37,692,940) Net investment income - Class B (1,254,542) (904,899) (2,335,735) (1,962,017) ------------ ------------ ------------ ------------ Total dividends (7,885,151) (5,715,629) (40,865,461) (39,654,957) ------------ ------------ ------------ ------------ Share Transactions* Class A: Proceeds from shares sold 54,335,625 47,473,392 74,169,454 43,116,454 Reinvestment of dividends 5,527,350 4,139,571 27,917,451 29,138,211 Cost of shares redeemed (22,919,488) (14,827,750) (54,438,349) (50,752,779) ------------ ------------ ------------ ------------ 36,943,487 36,785,213 47,648,556 21,501,886 ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 10,815,522 10,125,998 12,429,320 6,535,725 Reinvestment of dividends 1,092,655 812,606 1,486,015 1,175,341 Cost of shares redeemed (4,647,711) (2,085,303) (5,406,924) (3,483,162) ------------ ------------ ------------ ------------ 7,260,466 8,853,301 8,508,411 4,227,904 ------------ ------------ ------------ ------------ Net increase from share transactions 44,203,953 45,638,514 56,156,967 25,729,790 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 49,423,447 46,760,474 125,123,819 (19,792,325) Net Assets Beginning of year 124,916,241 78,155,767 421,044,606 440,836,931 ------------ ------------ ------------ ------------ End of year+ $174,339,688 $124,916,241 $546,168,425 $421,044,606 ============ ============ ============ ============ +Includes undistributed net investment deficit of $ (1,073,397) $ (540,137) $ (1,481,783) $ (1,141,323) ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 5,422,036 4,854,850 25,912,750 14,895,545 Issued for dividends reinvested 549,544 422,822 9,743,823 10,076,127 Redeemed (2,282,798) (1,519,576) (19,071,100) (17,411,428) ------------ ------------ ------------ ------------ Net increase in Class A shares outstanding 3,688,782 3,758,096 16,585,473 7,560,244 ============ ============ ============ ============ Class B: Sold 1,080,259 1,034,955 4,363,332 2,269,331 Issued for dividends reinvested 108,648 82,994 517,968 409,120 Redeemed (463,573) (214,018) (1,892,570) (1,214,018) ------------ ------------ ------------ ------------ Net increase in Class B shares outstanding 725,334 903,931 2,988,730 1,464,433 ============ ============ ============ ============
See notes to financial statements Notes to Financial Statements September 30, 2003 1. Significant Accounting Policies--First Investors Cash Management Fund, Inc. ("Cash Management Fund"), First Investors Government Fund, Inc. ("Government Fund"), First Investors Investment Grade Fund ("Investment Grade Fund"), a series of First Investors Series Fund ("Series Fund"), and First Investors Fund For Income, Inc. ("Income Fund") are registered under the Investment Company Act of 1940 (the "1940 Act") as diversified, open-end management investment companies. Each Fund accounts separately for its assets, liabilities and operations of the Fund. Series Fund offers four additional series which are not included in this report. The objective of each Fund is as follows: Cash Management Fund seeks to earn a high rate of current income consistent with the preservation of capital and maintenance of liquidity. Government Fund seeks to achieve a significant level of current income which is consistent with security and liquidity of principal. Investment Grade Fund seeks to generate a maximum level of income consistent with investment in investment grade debt securities. Income Fund primarily seeks high current income and secondarily seeks capital appreciation. A. Security Valuation--The Cash Management Fund values its portfolio securities in accordance with the amortized cost method of valuation under Rule 2a-7 under the 1940 Act. Amortized cost is an approximation of market value of an instrument, whereby the difference between its acquisition cost and market value at maturity is amortized on a straight-line basis over the remaining life of the instrument. The effect of changes in the market value of a security as a result of fluctuating interest rates is not taken into account and thus the amortized cost method of valuation may result in the value of a security being higher or lower than its actual market value. With respect to each of the other Funds, except as provided below, a security listed or traded on an exchange or the Nasdaq Stock Market is valued at its last sale price on the exchange or market where the security is principally traded, and lacking any sales, the security is valued at the mean between the closing bid and asked prices. Securities traded in the over-the-counter ("OTC") market (including securities listed on exchanges whose primary market is believed to be OTC) are valued at the mean between the last bid and asked prices based upon quotes furnished by a market maker for such securities. Securities may also be priced by a pricing service approved by the applicable Fund's Board of Directors/Trustees. The pricing service considers security type, rating, market condition and yield data as well as market quotations, prices provided by market makers and other available information in determining value. Short-term debt securities that mature in 60 days or less are valued at amortized cost. 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 the Fund's Board of Directors/Trustees. At September 30, 2003, the Income Fund held eighteen securities that were fair valued by its Valuation Committee with an aggregate value of $650,993 representing 0.1% 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, federal income taxes. At September 30, 2003, capital loss carryovers were as follows:
Year Capital Loss Carryovers Expire -------------------------------------------------------------------------------------------------- Fund Total 2004 2005 2007 2008 2009 2010 2011 - ---- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Government $3,420,990 $ 204,508 $ -- $ -- $1,017,364 $2,144,197 $ -- $ 54,921 Investment Grade 2,150,642 -- -- -- -- 1,715,940 27,419 407,283 Income 94,718,360 4,514,945 3,055,280 842,581 1,832,458 13,810,649 18,563,112 52,099,335
C. Distributions to Shareholders--The Cash Management Fund declares distributions daily and pays distributions monthly. Distributions are declared from the total of net investment income plus or minus all realized short-term gains and losses on investments. Dividends from net investment income of each of the other Funds are generally declared daily and paid monthly and distributions from net realized capital gains, if any, are generally declared and paid annually. Income dividends and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for mortgage-backed securities, capital loss carryforwards and post-October capital losses. D. 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. E. Expense Allocation--Expenses directly charged or attributable to a Fund are paid from the assets of that Fund. General expenses of Series Fund are allocated among and charged to the assets of each Fund in Notes to Financial Statements (continued) September 30, 2003 Series 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. F. Other--Security transactions are accounted for on the date the securities are purchased or sold. Cost is determined, and gains and losses are based, on the identified cost basis for both financial statement and federal income tax purposes. Dividend income is recorded on the ex-dividend date. Interest income and estimated expenses are accrued daily. Bond discounts and premiums are accreted or amortized using the interest method. For the year ended September 30, 2003, the Bank of New York, custodian for the Funds, has provided total credits in the amount of $15,631 against custodian charges based on the uninvested cash balances of the Funds. 2. Security Transactions--For the year ended September 30, 2003, purchases and sales (including pay-downs on Government Fund) of securities and long-term U.S. Government obligations (excluding short-term U.S. Government obligations and short-term securities) were as follows: Long-Term U.S. Securities Government Obligations --------------------------- --------------------------- Cost of Proceeds Cost of Proceeds Fund Purchases from Sales Purchases from Sales - ---- ------------ ------------ ------------ ------------ Government $ -- $ -- $150,537,306 $126,665,895 Investment Grade 46,504,811 9,118,385 8,759,948 -- Income 187,709,659 136,904,229 -- -- At September 30, 2003, aggregate cost and net unrealized appreciation (depreciation) of securities for federal income tax purposes were as follows: Net Gross Gross Unrealized Aggregate Unrealized Unrealized Appreciation Fund Cost Appreciation Depreciation (Depreciation) - ---- ------------ ------------ ------------ ------------ Government $203,357,018 $ 3,973,141 $ 400,168 $ 3,572,973 Investment Grade 160,441,315 11,858,777 1,771,907 10,086,870 Income 587,786,686 28,683,952 85,454,571 (56,770,619) 3. Advisory Fee and Other Transactions With Affiliates--Certain officers and directors/trustees of the Funds are officers and directors of the Funds' investment adviser, First Investors Management Company, Inc. ("FIMCO"), 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' Individual Retirement Accounts. Directors/trustees of the Funds who are not "interested persons" of the Funds as defined in the 1940 Act are remunerated by the Funds. For the year ended September 30, 2003, total directors/trustees fees accrued by the Funds amounted to $43,250. The Investment Advisory Agreements provide as compensation to FIMCO an annual fee, payable monthly, at the following rates: Cash Management Fund--.50% of the Fund's average daily net assets. Government Fund--1% on the first $200 million of the Fund's average daily net assets, .75% on the next $300 million, declining by .03% on each $250 million thereafter, down to .66% on average daily net assets over $1 billion. FIMCO has voluntarily waived 40% of the 1% annual fee on the first $200 million of the Fund's average daily net assets for the year ended September 30, 2003. Investment Grade Fund--.75% on the first $300 million of the Fund's average daily net assets, .72% on the next $200 million, .69% on the next $250 million, and .66% on average daily net assets over $750 million. FIMCO has voluntarily waived 20% of the .75% annual fee on the first $300 million of the Fund's average daily net assets for the year ended September 30, 2003. Income Fund--.75% on the first $250 million of the Fund's average daily net assets, declining by .03% on each $250 million thereafter, down to ..66% on average daily net assets over $750 million. For the year ended September 30, 2003, total advisory fees accrued to FIMCO by the Funds were $7,665,788 of which $1,016,186 was waived by FIMCO on the Government and Investment Grade Funds. In addition, FIMCO assumed $690,216 of the Cash Management, Government and Investment Grade Funds' expenses. For the year ended September 30, 2003, FIC, as underwriter, received $5,293,301 in commissions from the sale of shares of the Funds after allowing $126,580 to other dealers. Shareholder servicing costs included $1,878,081 in transfer agent fees accrued to ADM and $376,762 in IRA custodian fees accrued to FIFSB. Pursuant to Distribution Plans adopted under Rule 12b-1 of the 1940 Act, each Fund, other than the Cash Management Fund, is authorized to pay FIC a fee up to .30% of the average daily net assets of the Class A shares on an annual basis, payable monthly. Each fund, including the Cash Management Fund, is authorized to pay FIC a fee up to 1% of the average daily net assets of the Class B shares on an annual basis, payable monthly. The fee consists of a distribution fee and a service fee. The Notes to Financial Statements (continued) September 30, 2003 service fee is paid for the ongoing servicing of clients who are shareholders of that Fund. For the year ended September 30, 2003, total distribution fees accrued to FIC by the Funds amounted to $2,930,164. 4. Restricted Securities--Certain restricted securities are exempt from the registration requirements of the Securities Act of 1933 and may only be sold to qualified institutional investors. At September 30, 2003, Cash Management Fund held eleven restricted securities with an aggregate value of $40,307,189 representing 21.8% of the Fund's net assets, Investment Grade Fund held nine restricted securities with an aggregate value of $12,375,363 representing 7.1% of the Fund's net assets and Income Fund held thirty restricted securities with an aggregate value of $57,475,398 representing 10.5% of the Fund's net assets. These securities are valued as set forth in Note 1A. 5. High Yield Credit Risk--The investments of Income Fund in high yield securities whether rated or unrated may be considered speculative and subject to greater market fluctuations and risks of loss of income and principal than lower-yielding, higher-rated, fixed-income securities. The risk of loss due to default by the issuer may be significantly greater for holders of high-yielding securities, because such securities are generally unsecured and are often subordinated to other creditors of the issuer. 6. Capital--Cash Management Fund sells two classes of shares, Class A and Class B, each without an initial sales charge. Class B shares may only be acquired through an exchange of Class B shares from another First Investors eligible fund or through the reinvestment of dividends on Class B shares and are generally subject to a contingent deferred sales charge at the rate of 4% in the first year and declining to 0% over a six-year period, which is payable to FIC as underwriter of the Funds. Each of the other Funds also sells two classes of shares, Class A and Class B, each with a public offering price that reflects different sales charges and expense levels. Class A shares are sold with an initial sales charge of up to 5.75% of the amount invested and together with the Class B shares are subject to distribution plan fees as described in Note 3. Class B shares are sold without an initial sales charge, but are generally subject to a contingent deferred sales charge which declines in steps from 4% to 0% over a six-year period. Class B shares automatically convert into Class A shares after eight years. Realized and unrealized gains or losses, investment income and expenses (other than distribution plan fees) are allocated daily to each class of shares based upon the relative proportion of net assets to each class. Of the 5,000,000,000 shares originally authorized by the Cash Management Fund, the Fund has designated 2,500,000,000 shares as Class A and 2,500,000,000 shares as Class B. Of the 1,000,000,000 shares originally authorized by both Government Fund and Income Fund, each Fund has designated 500,000,000 shares as Class A and 500,000,000 shares as Class B. Series Fund, of which Investment Grade Fund is a series, has established an unlimited number of shares of beneficial interest for both Class A and Class B shares. 7. Tax Components of Capital and Distributions to Shareholders--The tax character of distributions declared for the years ended September 30, 2003 and September 30, 2002 consisted entirely of ordinary income as follows: Distributions Distributions Declared Declared in 2003 from: in 2002 from: -------------- -------------- Ordinary Ordinary Fund Income Income - ---- -------------- -------------- Cash Management $ 1,182,333 $ 2,832,709 Government 9,383,651 8,122,046 Investment Grade 7,885,151 5,715,629 Income 40,865,461 39,654,957 As of September 30, 2003, the components of distributable earnings on a tax basis were: Total Undistributed Capital Unrealized Distributable Ordinary Loss Appreciation Earnings Fund Income Carryover (Depreciation) (Deficit) - ---- ------------ ------------ ------------ ------------ Government $ 47,132 $ (3,420,990) $ 1,972,758 $ (1,401,100) Investment Grade 212,180 (2,150,642) 8,588,230 6,649,768 Income 634,711 (94,718,360) (82,804,245) (176,887,894) Financial Highlights FIRST INVESTORS The following table sets forth the per share operating performance data for a share outstanding, total return, ratios to average net assets and other supplemental data for each fiscal year ended September 30, except as otherwise indicated.
- --------------------------------------------------------------------------------------------------------------------------------- P E R S H A R E D A T A ------------------------------------------------------------------------------------------------------------------ Less Distributions Investment Operations from ---------------------------------------- ------------------------- Net Asset Net Realized Net Asset Value, Net and Unrealized Total from Net Net Value, Beginning Investment Gain (Loss) on Investment Investment Realized Total End of of Period Income Investments Operations Income Gain Distributions Period - --------------------------------------------------------------------------------------------------------------------------------- CASH MANAGEMENT FUND - -------------------- Class A - ------- 1998(a) $ 1.00 $.048 $ -- $.048 $.048 $ -- $.048 $ 1.00 1999(b) 1.00 .032 -- .032 .032 -- .032 1.00 2000 1.00 .054 -- .054 .054 -- .054 1.00 2001 1.00 .050 -- .050 .050 -- .050 1.00 2002 1.00 .014 -- .014 .014 -- .014 1.00 2003 1.00 .006 -- .006 .006 -- .006 1.00 Class B - ------- 1998(a) 1.00 .041 -- .041 .041 -- .041 1.00 1999(b) 1.00 .027 -- .027 .027 -- .027 1.00 2000 1.00 .046 -- .046 .046 -- .046 1.00 2001 1.00 .040 -- .040 .040 -- .040 1.00 2002 1.00 .006 -- .006 .006 -- .006 1.00 2003 1.00 .001 -- .001 .001 -- .001 1.00 - --------------------------------------------------------------------------------------------------------------------------------- GOVERNMENT FUND - --------------- Class A - ------- 1999 $11.49 $ .63 $(.58) $ .05 $ .61 $ -- $ .61 $10.93 2000 10.93 .65 .02 .67 .66 -- .66 10.94 2001 10.94 .64 .48 1.12 .65 -- .65 11.41 2002 11.41 .59 .09 .68 .59 -- .59 11.50 2003 11.50 .54 (.19) .35 .54 -- .54 11.31 Class B - ------- 1999 11.48 .54 (.57) (.03) .53 -- .53 10.92 2000 10.92 .57 .02 .59 .58 -- .58 10.93 2001 10.93 .55 .49 1.04 .56 -- .56 11.41 2002 11.41 .50 .09 .59 .51 -- .51 11.49 2003 11.49 .45 (.19) .26 .45 -- .45 11.30 - --------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------ R A T I O S / S U P P L E M E N T A L D A T A ------------------------------------------------------------------------------------------------ Ratio to Average Net Ratio to Average Net Assets Before Expenses Assets** Waived or Assumed ----------------------- ----------------------- Net Net Portfolio Total Net Assets Investment Investment Turnover Return* End of Period Expenses Income Expenses Income Rate (%) (in millions) (%) (%) (%) (%) (%) - ------------------------------------------------------------------------------------------------------------------ CASH MANAGEMENT FUND - -------------------- Class A - ------- 1998(a) 4.92 $160 .80 5.00 1.14 4.66 -- 1999(b) 3.29 158 .80+ 4.33+ 1.14+ 3.99+ -- 2000 5.50 182 .80 5.36 1.08 5.08 -- 2001 4.63 204 .80 4.52 .99 4.33 -- 2002 1.38 193 .80 1.38 .90 1.28 -- 2003 0.62 179 .78 .62 .97 .43 -- Class B - ------- 1998(a) 4.14 1 1.55 4.25 1.89 3.91 -- 1999(b) 2.72 2 1.55+ 3.58+ 1.89+ 3.24+ -- 2000 4.72 2 1.55 4.61 1.83 4.33 -- 2001 3.85 4 1.55 3.77 1.74 3.58 -- 2002 .63 6 1.55 .63 1.65 .53 -- 2003 0.05 6 1.34 .06 1.53 (.13) -- - ------------------------------------------------------------------------------------------------------------------ GOVERNMENT FUND - --------------- Class A - ------- 1999 .50 $140 1.19 5.58 1.57 5.20 99 2000 6.38 124 1.12 6.05 1.55 5.62 26 2001 10.49 137 1.10 5.70 1.53 5.27 59 2002 6.16 168 1.10 5.21 1.56 4.75 75 2003 3.08 184 1.10 4.69 1.58 4.21 65 Class B - ------- 1999 (.25) 3 1.93 4.84 2.31 4.46 99 2000 5.56 3 1.87 5.30 2.30 4.87 26 2001 9.77 6 1.85 4.95 2.28 4.52 59 2002 5.29 16 1.85 4.46 2.31 4.00 75 2003 2.33 21 1.85 3.94 2.33 3.46 65 - ------------------------------------------------------------------------------------------------------------------
Financial Highlights (continued) FIRST INVESTORS
- --------------------------------------------------------------------------------------------------------------------------------- P E R S H A R E D A T A ------------------------------------------------------------------------------------------------------------------ Less Distributions Investment Operations from ---------------------------------------- ------------------------- Net Asset Net Realized Net Asset Value, Net and Unrealized Total from Net Net Value, Beginning Investment Gain (Loss) on Investment Investment Realized Total End of of Period Income Investments Operations Income Gain Distributions Period - --------------------------------------------------------------------------------------------------------------------------------- INVESTMENT GRADE FUND - --------------------- Class A - ------- 1999 $10.53 $ .57 $(.79) $(.22) $ .58 $.07 $ .65 $ 9.66 2000 9.66 .60 (.14) .46 .58 .01 .59 9.53 2001 9.53 .61 .41 1.02 .63 -- .63 9.92 2002++ 9.92 .55 .07 .62 .58 -- .58 9.96 2003 9.96 .51 .35 .86 .54 -- .54 10.28 Class B - ------- 1999 10.54 .50 (.79) (.29) .51 .07 .58 9.67 2000 9.67 .54 (.14) .40 .52 .01 .53 9.54 2001 9.54 .54 .41 .95 .56 -- .56 9.93 2002++ 9.93 .48 .06 .54 .51 -- .51 9.96 2003 9.96 .43 .36 .79 .47 -- .47 10.28 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FUND - ----------- Class A - ------- 1999 $ 4.17 $ .40 $ (.27) $ .13 $ .38 $ -- $ .38 $ 3.92 2000 3.92 .35 (.26) .09 .38 -- .38 3.63 2001 3.63 .33 (.68) (.35) .35 -- .35 2.93 2002++ 2.93 .26 (.29) (.03) .26 -- .26 2.64 2003 2.64 .24 .41 .65 .24 -- .24 3.05 Class B - ------- 1999 4.16 .37 (.27) .10 .36 -- .36 3.90 2000 3.90 .33 (.26) .07 .36 -- .36 3.61 2001 3.61 .31 (.67) (.36) .33 -- .33 2.92 2002++ 2.92 .24 (.30) (.06) .23 -- .23 2.63 2003 2.63 .23 .41 .64 .22 -- .22 3.05 - --------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------ R A T I O S / S U P P L E M E N T A L D A T A ------------------------------------------------------------------------------------------------ Ratio to Average Net Ratio to Average Net Assets Before Expenses Assets** Waived or Assumed ----------------------- ----------------------- Net Net Portfolio Total Net Assets Investment Investment Turnover Return* End of Period Expenses Income Expenses Income Rate (%) (in millions) (%) (%) (%) (%) (%) - ------------------------------------------------------------------------------------------------------------------ INVESTMENT GRADE FUND - --------------------- Class A - ------- 1999 (2.21) $ 49 1.10 5.70 1.38 5.42 18 2000 5.03 47 1.10 6.36 1.35 6.11 62 2001 10.93 65 1.10 6.22 1.28 6.04 21 2002++ 6.48 102 1.10 5.63 1.33 5.40 13 2003 8.94 144 1.10 4.85 1.35 4.60 6 Class B - ------- 1999 (2.90) 7 1.80 5.00 2.08 4.72 18 2000 4.31 8 1.80 5.66 2.05 5.41 62 2001 10.15 13 1.84 5.48 2.02 5.30 21 2002++ 5.61 23 1.85 4.88 2.08 4.65 13 2003 8.17 31 1.85 4.10 2.10 3.85 6 - ------------------------------------------------------------------------------------------------------------------ INCOME FUND - ----------- Class A - ------- 1999 3.13 $389 1.29 9.71 N/A N/A 28 2000 2.46 501 1.29 9.55 N/A N/A 14 2001 (10.20) 418 1.30 9.81 N/A N/A 18 2002++ (1.52) 397 1.35 8.90 N/A N/A 20 2003 25.78 509 1.34 8.38 N/A N/A 31 Class B - ------- 1999 2.29 14 1.99 9.01 N/A N/A 28 2000 1.81 23 1.99 8.85 N/A N/A 14 2001 (10.62) 22 2.00 9.11 N/A N/A 18 2002++ (2.33) 24 2.05 8.20 N/A N/A 20 2003 25.24 37 2.04 7.68 N/A N/A 31 - ------------------------------------------------------------------------------------------------------------------ * Calculated without sales charges. ** Net of expenses waived or assumed (Note 3). + Annualized ++ Prior to October 1, 2001, the Income Fund and the Investment Grade Fund did not amortize premiums on debt securities. The per share data and ratios prior to October 1, 2001 have not been restated. The cumulative effect of this accounting change had no impact on total net assets of the Funds. (a) For the calendar year ended December 31, 1998. (b) For the period January 1, 1999 to September 30, 1999. See notes to financial statements
Independent Auditors' Report To the Shareholders and Boards of Directors/Trustees of First Investors Cash Management Fund, Inc. First Investors Government Fund, Inc. First Investors Investment Grade Fund First Investors Fund For Income, Inc. We have audited the accompanying statement of assets and liabilities, including the portfolios of investments, of the First Investors Cash Management Fund, Government Fund, Investment Grade Fund (a series of First Investors Series Fund) and Fund For Income as of September 30, 2003, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated thereon. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2003, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of First Investors Cash Management Fund, Government Fund, Investment Grade Fund and Fund For Income as of September 30, 2003, and the results of their operations for the year then ended, changes in their net assets for each of the two years in the period then ended, and their financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America. Tait, Weller & Baker Philadelphia, Pennsylvania November 3, 2003 This page intentionally left blank.
FIRST INVESTORS TAXABLE BOND AND MONEY MARKET FUNDS Directors/Trustees and Officers* Position(s) Held with Principal Number of Other Funds and Occupation(s) Portfolios in Trusteeships Name, Date of Birth Length of During Past Fund Complex Directorships and Address Service 5 Years Overseen Held - ------------------- ------------------ ------------------ ------------ ------------ DISINTERESTED DIRECTORS/TRUSTEES Robert M. Grohol 1/16/1932 Director/Trustee None/Retired 50 None c/o First Investors since 6/30/00 Management Company, Inc. 95 Wall Street New York, NY 10005 Rex R. Reed 3/19/1922 Director/Trustee None/Retired 50 None c/o First Investors since 3/31/84 Management Company, Inc. 95 Wall Street New York, NY 10005 Herbert Rubinstein 6/14/1921 Director/Trustee None/Retired 50 None c/o First Investors since 9/20/79 Management Company, Inc. 95 Wall Street New York, NY 10005 James M. Srygley 10/17/1932 Director/Trustee Owner 50 None c/o First Investors since 1/19/95 Hampton Management Company, Inc. Properties 95 Wall Street New York, NY 10005 Robert F. Wentworth 7/5/1929 Director/Trustee None/Retired 50 None 217 Upland Downs Road since 10/15/92 Management Company, Inc. 95 Wall Street New York, NY 10005 Position(s) Held with Principal Number of Other Funds and Occupation(s) Portfolios in Trusteeships Name, Date of Birth Length of During Past Fund Complex Directorships and Address Service 5 Years Overseen Held - ------------------- ------------------ ------------------ ------------ ------------ INTERESTED DIRECTORS/TRUSTEES** Glenn O. Head 8/16/1925 Director/Trustee Chairman of 50 None c/o First Investors since 1968 First Investors Management Company, Inc. Corporation, 95 Wall Street Chairman of New York, NY 10005 First Investors Consolidated Corporation, Chairman of First Investors Management Company, Inc., Chairman of Administrative Data Management Corp., and officer of other affiliated companies*** Kathryn S. Head 12/31/1955 Director/Trustee Vice President 50 None c/o First Investors since 3/17/94 of First Investors Management Company, Inc. Corporation, 581 Main Street President President of Woodbridge, NJ 07095 since 11/15/01 First Investors Consolidated Corporation, President of First Investors Management Company, Inc., President of Administrative Data Management Corp., Chairman of First Investors Federal Savings Bank and officer of other affiliated companies*** FIRST INVESTORS TAXABLE BOND AND MONEY MARKET FUNDS Directors/Trustees and Officers* (continued) Position(s) Held with Principal Number of Other Funds and Occupation(s) Portfolios in Trusteeships Name, Date of Birth Length of During Past Fund Complex Directorships and Address Service 5 Years Overseen Held - ------------------- ------------------ ------------------ ------------ ------------ INTERESTED DIRECTORS/TRUSTEES (continued) Larry R. Lavoie 9/12/1947 Director/Trustee General Counsel 50 None c/o First Investors since 9/17/98 First Investors Management Company, Inc. Corporation 95 Wall Street and other New York, NY 10005 affiliated companies*** John T. Sullivan 1/18/1932 Director/Trustee Of Counsel 50 None c/o First Investors since 9/20/79 Hawkins, Management Company, Inc. Delafield & 95 Wall Street Wood; Director New York, NY 10005 and Chairman of Executive Committee of First Investors Corporation * Each Director/Trustee serves for an indefinite term with the Funds, until his/her successor is elected. ** Mr. Head and Ms. Head are interested directors/trustees because (a) they are indirect owners of more than 5% of the voting stock of the adviser and principal underwriter of the Funds, (b) they are officers, directors and employees of the adviser and principal underwriter of the Funds, and (c) they are officers of the Funds. Ms. Head is the daughter of Mr. Head. Mr. Lavoie is an interested director/trustee of the Funds because he indirectly owns securities issued by and is an officer of the adviser and principal underwriter of the Funds. Mr. Sullivan is an interested director/trustee because he is a director and Chairman of the Executive Committee of First Investors Corporation and he indirectly owns securities issued by the adviser and principal underwriter of the Funds. *** Other affiliated companies consist of: First Investors Realty Company, Inc., First Investors Life Insurance Company, First Investors Leverage Corporation, Route 33 Realty Corporation, First Investors Credit Funding Corporation, N.A.K. Realty Corporation, Real Property Development Corporation, School Financial Management Services, Inc., First Investors Federal Savings Bank, First Investors Credit Corporation and First Investors Resources, Inc. Position(s) Held with Principal Number of Other Funds and Occupation(s) Portfolios in Trusteeships Name, Date of Birth Length of During Past Fund Complex Directorships and Address Service 5 Years Overseen Held - ------------------- ------------------ ------------------ ------------ ------------ OFFICERS WHO ARE NOT DIRECTORS/TRUSTEES Joseph I. Benedek 8/2/1957 Treasurer Treasurer 50 None c/o First Investors since 1988 and Principal Management Company, Inc. Accounting Officer 581 Main Street Woodbridge, NJ 07095 George V. Ganter 5/29/1952 Vice President Portfolio Manager 2 None c/o First Investors since 2000 of First Investors Management Company, Inc. Management 95 Wall Street Company, Inc. New York, NY 10005 Michael J. O'Keefe 11/24/1965 Vice President Portfolio Manager 3 None c/o First Investors since 1996 of First Investors Management Company, Inc. Management 95 Wall Street Company, Inc. New York, NY 10005 Clark D. Wagner 2/25/1959 Vice President Director of 27 None c/o First Investors since 1991 Fixed Income Management Company, Inc. (previously Chief 95 Wall Street Investment Officer) New York, NY 10005 of First Investors Management Company, Inc.
FIRST INVESTORS TAXABLE BOND AND MONEY MARKET FUNDS Shareholder Information - -------------------------------------------------- Investment Adviser First Investors Management Company, Inc. 95 Wall Street New York, NY 10005 Underwriter First Investors Corporation 95 Wall Street New York, NY 10005 Custodian The Bank of New York One Wall Street New York, NY 10286 Transfer Agent Administrative Data Management Corp. 581 Main Street Woodbridge, NJ 07095-1198 Legal Counsel Kirkpatrick & Lockhart LLP 1800 Massachusetts Avenue, N.W. Washington, DC 20036 Auditors Tait, Weller & Baker 1818 Market Street Philadelphia, PA 19103 The Cash Management Fund is a money market fund and seeks to maintain a stable net asset value of $1.00 per share. However, there can be no assurance that the Fund will be able to do so or achieve its investment objective. An investment in the Fund is neither insured nor guaranteed by the U.S. Government. It is the Funds' practice to mail only one copy of their annual and semi-annual reports to any address at which more than one shareholder with the same last name has indicated that mail is to be delivered. Additional copies of the reports will be mailed if requested by any shareholder in writing or by calling 800-423-4026. The Funds will ensure that separate reports are sent to any shareholder who subsequently changes his or her mailing address. This report is authorized for distribution only to existing shareholders, and, if given to prospective shareholders, must be accompanied or preceded by the Funds' prospectus. NOTES NOTES Item 2. Code of Ethics - Filed herewith The Board of Directors/Trustees of First Investors Funds ("Board") has adopted a Code of Ethics that applies to the First Investors Funds' ("Funds") principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Funds or a third party. The Code of Ethics is attached to this report as Exhibit A. During the period of the report, there have been no amendments to the Code of Ethics or waivers, implicit or otherwise, from its provisions. Item 3. Audit Committee Financial Expert - Filed herewith The Independent Director currently serving as the Audit Committee Financial Expert is Robert F. Wentworth. The Board of Directors/Trustees of First Investors Funds ("Board") has unanimously determined that Mr. Wentworth satisfied the definition of an audit committee financial expert as set forth in the instructions to Form N-CSR under the Investment Company Act of 1940. Specifically, the Board determined that Mr. Wentworth has all of the following: (i) an understanding of generally accepted accounting principles and financial statements; (ii) the ability to assess the general application of such principles in connection with the accounting for estimates, accruals, and reserves; (iii) experience preparing, auditing, analyzing or evaluating financial statements that present the breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the Funds' financial statements, or experience actively supervising one or more persons engaged in such activities; (iv) an understanding of internal controls and procedures for financial reports; and (v) an understanding of audit committee functions. Furthermore, he had acquired these attributes through education and many years of relevant experience in various financial positions with American Telephone and Telegraph Company, including the positions of Director - Accounting, Director - Finance, Director - Financial Reporting and Analysis, Controller, and Director of Business Planning. Mr. Wentworth also has many years experience serving on the Audit Committees of First Investors Funds and other organizations. Finally, Mr. Wentworth is independent as defined in the instructions to the Form. Item 4. Principal Accountant Fees and Services - Not applicable to this filing. Applicable to Annual Reports for fiscal years ending on or after December 15, 2003. Item 5. Audit Committee of Listed Registrants - Not applicable Item 6. [Reserved] Item 7. Disclosure of Proxy Voting Policies & Procedures for Closed-End Management Investment Companies - Not applicable for this filing Item 8. [Reserved] Item 9. Controls and Procedures (a) The Registrant's Principal Executive Officer and Principal Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective, based on their evaluation of these disclosure controls and procedures as of a date within 90 days of the filing date of this report. (b) There were no significant changes in the Registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Item 10. Exhibits (a) Code of Ethics - Filed herewith (b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Filed herewith (c) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Filed herewith SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant have duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. First Investors Cash Management Fund, Inc. First Investors Government Fund, Inc. First Investors Series Fund First Investors Fund For Income, Inc. (Registrant) By /S/ KATHRYN S. HEAD Kathryn S. Head President and Principal Executive Officer Date: December 1, 2003 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 Cash Management Fund, Inc. First Investors Government Fund, Inc. First Investors Series Fund First Investors Fund For Income, Inc. (Registrant) By /S/ JOSEPH I. BENEDEK Joseph I. Benedek Treasurer and Principal Financial Officer Date: December 1, 2003 EX-99.CODE ETH 3 ethics.txt CODE OF ETHICS Item 2. Code of Ethics The Board of Directors/Trustees of First Investors Funds ("Board") has adopted a Code of Ethics that applies to the First Investors Funds' ("Funds") principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Funds or a third party. The Code of Ethics is attached to this report as Exhibit A. During the period of the report, there have been no amendments to the Code of Ethics or waivers, implicit or otherwise, from its provisions. EX-99.CERT 4 bond302.txt CERTIFICATIONS - SECTION 302 CERTIFICATIONS I, Kathryn S. Head, certify that: 1. I have reviewed this report on Form N-CSR of First Investors Cash Management Fund, Inc., First Investors Government Fund, Inc., First Investors Series Fund and First Investors Fund For Income, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this report; 4. The Registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal half-year (the Registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and 5. The Registrant's other certifying officer(s) and I have disclosed, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. By: /S/ KATHRYN S. HEAD Kathryn S. Head President and Principal Executive Officer Date: December 1, 2003 CERTIFICATIONS I, Joseph I. Benedek, certify that: 1. I have reviewed this report on Form N-CSR of First Investors Cash Management Fund, Inc., First Investors Government Fund, Inc., First Investors Series Fund and First Investors Fund For Income, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this report; 4. The Registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal half-year (the Registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and 5. The Registrant's other certifying officer(s) and I have disclosed, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. By: /S/ JOSEPH I. BENEDEK Joseph I. Benedek Treasurer and Principal Financial Officer Date: December 1, 2003 EX-99.906 CERT 5 bond906.txt CERTIFICATIONS - SECTION 906 CERTIFICATION CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 I, Kathryn S. Head, President and Principal Executive Officer of First Investors Cash Management Fund, Inc., First Investors Government Fund, Inc., First Investors Series Fund and First Investors Fund For Income, Inc. (the "Registrant"), certify, pursuant to 18 U.S.C. Section 1350 as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge: 1. The Registrant's periodic report on Form N-CSR of the First Investors Cash Management Fund, Inc., First Investors Government Fund, Inc., First Investors Series Fund, and First Investors Fund For Income, Inc. for the year ended September 30, 2003, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Dated: December 1, 2003 /S/ KATHRYN S. HEAD Kathryn S. Head President and Principal Executive Officer, First Investors Cash Management Fund, Inc., First Investors Government Fund, Inc., First Investors Series Fund, and First Investors Fund For Income, Inc. A signed original of this written statement required by Section 906 has been provided to First Investors Cash Management Fund, Inc., First Investors Government Fund, Inc., First Investors Series Fund and First Investors Fund For Income, Inc. and will be retained by First Investors Cash Management Fund, Inc., First Investors Government Fund, Inc., First Investors Series Fund and First Investors Fund For Income, Inc. and furnished to the Securities and Exchange Commission or its staff upon request. CERTIFICATION CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 I, Joseph I. Benedek, Treasurer and Principal Financial Officer of First Investors Cash Management Fund, Inc., First Investors Government Fund, Inc., First Investors Series Fund and First Investors Fund For Income, Inc. (the "Registrant"), certify, pursuant to 18 U.S.C. Section 1350 as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge: 1. The Registrant's periodic report on Form N-CSR of the First Investors Cash Management Fund, Inc., First Investors Government Fund, Inc., First Investors Series Fund and First Investors Fund For Income, Inc. for the year ended September 30, 2003, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Dated: December 1, 2003 /S/ JOSEPH I. BENEDEK Joseph I. Benedek Treasurer and Principal Financial Officer, First Investors Cash Management Fund, Inc., First Investors Government Fund, Inc., First Investors Series Fund, and First Investors Fund For Income, Inc. A signed original of this written statement required by Section 906 has been provided to First Investors Cash Management Fund, Inc., First Investors Government Fund, Inc., First Investors Series Fund and First Investors Fund For Income, Inc. and will be retained by First Investors Cash Management Fund, Inc., First Investors Government Fund, Inc., First Investors Series Fund and First Investors Fund For Income, Inc. and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----