-----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, EUT0jmKxA9V0ZHepcFcrL9bpBgwSCCvrcXZGlp3soRBapYsS7tqV3cggCFmr+2hf X4TllILEpEO8G+R/tBdDtg== 0000276461-04-000015.txt : 20040607 0000276461-04-000015.hdr.sgml : 20040607 20040607151811 ACCESSION NUMBER: 0000276461-04-000015 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20040331 FILED AS OF DATE: 20040607 EFFECTIVENESS DATE: 20040607 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-02860 FILM NUMBER: 04851839 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 CENTRAL INDEX KEY: 0000312370 IRS NUMBER: 132670442 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-02107 FILM NUMBER: 04851842 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 FORMER COMPANY: FORMER CONFORMED NAME: FIRST INVESTORS FUND FOR INCOME INC/NY DATE OF NAME CHANGE: 19920703 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-03967 FILM NUMBER: 04851841 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-05690 FILM NUMBER: 04851840 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-CSRS 1 ncsr0304.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 Corporation 581 Main Street Woodbridge, NJ 07095 1-732-855-2712 (Name and address of agent for service) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-212-858-8000 DATE OF FISCAL YEAR END: SEPTEMBER 30, 2004 DATE OF REPORTING PERIOD: MARCH 31, 2004 Item 1. Reports to Stockholders The Semi-Annual Report to Stockholders follows
Portfolio of Investments FIRST INVESTORS CASH MANAGEMENT FUND, INC. March 31, 2004 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal Interest $10,000 of Amount Security Rate* Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- CORPORATE NOTES--50.6% $750M Abbott Laboratories, 7/1/04 1.42% $756,903 $43 2,388M Anheuser-Busch Cos., Inc., 5/10/04 + 1.00 2,385,413 137 3,000M Archer-Daniels-Midland Co., 6/8/04 + 1.03 2,994,158 172 960M Associates Corp., NA, 10/15/04 1.23 995,990 57 5,000M ChevronTexaco Funding Corp., 4/13/04 1.00 4,998,331 288 3,300M Clorox Co., 5/6/04 .99 3,296,824 190 Coca-Cola Co.: 4,000M 4/16/04 .99 3,998,348 230 1,300M 5/5/04 1.01 1,298,758 75 2,000M Dow Jones & Co., Inc., 5/17/04 + 1.00 1,997,417 115 5,000M DuPont (E.I.) de Nemours & Co., 5/7/04 1.00 4,994,997 288 3,000M Eli Lilly & Co., 5/7/04 + .98 2,997,058 172 3,500M Gannett Co., Inc., 4/21/04 + .98 3,498,094 201 5,000M General Electric Capital Corp., 5/11/04 1.02 4,994,331 288 4,250M International Business Machines Corp., 4/16/04 .98 4,248,264 245 4,700M Madison Gas & Electric Co., 4/12/04 1.05 4,698,491 270 2,200M McDonald's Corp., 7/1/04 1.07 2,222,060 128 5,000M National Rural Utilities Cooperative Finance Corp., 5/3/04 1.02 4,995,466 288 5,000M New York Times Co., 4/1/04 1.00 5,000,000 288 5,000M Paccar Financial Corp., 5/4/04 1.01 4,995,367 288 2,000M PepsiCo, Inc., 9/15/04 1.28 2,028,879 117 5,000M Pfizer, Inc., 4/7/04 + .99 4,999,175 288 5,000M Prudential Funding Corp., 4/26/04 .99 4,996,561 288 5,000M Verizon Network Funding Corp., 4/22/04 .98 4,997,141 288 2,500M W.W. Grainger, Inc., 4/26/04 .98 2,498,298 144 3,000M Wal-Mart Stores, Inc., 4/6/04 + .98 2,999,591 173 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Corporate Notes (cost $87,885,915) 87,885,915 5,061 - ---------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS--29.7% Fannie Mae: 4,580M 4/7/04 .98 4,579,230 264 6,000M 4/30/04 .96 5,995,248 345 3,800M 5/26/04 .99 3,794,202 218 500M 8/15/04 1.40 509,417 29 1,000M 8/27/04 1.38 1,000,000 58 1,000M 2/4/05 1.56 1,000,000 58 2,700M 2/14/05 1.38 2,700,000 155 750M Federal Farm Credit Bank, 12/15/04 1.24 763,746 44 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS CASH MANAGEMENT FUND, INC. March 31, 2004 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal Interest $10,000 of Amount Security Rate* Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Federal Home Loan Bank: $2,500M 4/16/04 .97% $2,498,947 $144 500M 5/14/04 1.03 502,248 29 800M 5/26/04 1.25 806,888 46 3,000M 2/2/05 1.50 3,000,000 173 670M 2/15/05 1.17 686,245 40 2,700M 2/23/05 1.41 2,697,587 155 2,000M 3/22/05 1.31 2,000,448 115 2,000M 3/23/05 1.35 2,000,000 115 3,000M 3/25/05 1.37 3,000,000 173 2,000M 3/28/05 1.38 2,000,000 115 955M 3/30/05 1.32 955,570 55 2,500M 4/27/05 1.34 2,499,000 144 Freddie Mac: 1,500M 4/13/04 1.05 1,499,510 86 1,000M 4/19/04 1.05 1,001,165 58 1,275M 5/20/04 1.19 1,278,069 74 3,750M 11/3/04 1.09 3,749,912 216 1,000M 11/19/04 1.51 999,985 58 - ---------------------------------------------------------------------------------------------------------------------- Total Value of U.S. Government Agency Obligations (cost $51,517,417) 51,517,417 2,967 - ---------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS--8.9% U.S. Treasury Bills: 10,500M 4/22/04 .93 10,494,311 604 5,000M 4/29/04 .93 4,996,371 288 - ---------------------------------------------------------------------------------------------------------------------- Total Value of U.S. Government Obligations (cost $15,490,682) 15,490,682 892 - ---------------------------------------------------------------------------------------------------------------------- BANKERS' ACCEPTANCES--4.7% Bank of America, NA: 1,149M 5/12/04 1.01 1,147,690 66 3,861M 5/14/04 1.01 3,856,342 222 3,100M Regions Bank, 4/14/04 1.01 3,098,869 179 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Bankers' Acceptances (cost $8,102,901) 8,102,901 467 - ---------------------------------------------------------------------------------------------------------------------- FLOATING RATE NOTES--4.4% 2,000M Bank One Corp., 10/8/04 1.23 2,001,260 115 2,700M Fannie Mae, 9/10/04 1.05 2,700,000 155 3,000M Merrill Lynch & Co., Inc., 1/31/05 1.04 3,000,000 173 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Floating Rate Notes (cost $7,701,260) 7,701,260 443 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal Interest $10,000 of Amount Security Rate* Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT--2.9% $5,000M Chase Manhattan Bank, NA, 4/23/04 (cost $5,000,000) 1.02% $5,000,000 $288 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $175,698,175) ++ 101.2% 175,698,175 10,118 Excess of Liabilities Over Other Assets (1.2) (2,042,301) (118) - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $173,655,874 $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 March 31, 2004. + Security exempt from registration under Rule 144A of the Securities Act of 1933. See Note 4. ++ Aggregate cost for federal income tax purposes is the same. See notes to financial statements
Portfolio of Investments FIRST INVESTORS GOVERNMENT FUND, INC. March 31, 2004 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MORTGAGE-BACKED CERTIFICATES--97.9% Fannie Mae--15.9% $17,350M 5.5%, 4/1/2033-11/1/2033 $17,809,361 $893 11,530M 6%, 12/1/2029-9/1/2032 12,014,305 602 1,667M 8%, 9/1/2027 1,843,866 92 - ---------------------------------------------------------------------------------------------------------------------- 31,667,532 1,587 - ---------------------------------------------------------------------------------------------------------------------- Government National Mortgage Association I Program--77.7% 44,297M 5.5%, 3/15/2033-3/15/2034 45,696,921 2,292 36,231M 6%, 3/15/2031-2/15/2034 37,965,535 1,904 41,746M 6.5%, 3/15/2028-10/15/2033 44,317,340 2,223 16,844M 7%, 7/15/2027-12/15/2033 17,999,347 903 4,943M 7.5%, 7/15/2023-12/15/2033 5,332,671 268 3,150M 8%, 4/15/2030-6/15/2030 3,492,816 175 - ---------------------------------------------------------------------------------------------------------------------- 154,804,630 7,765 - ---------------------------------------------------------------------------------------------------------------------- Government National Mortgage Association II Program--4.3% 1,317M 6.5%, 10/20/2028-1/20/2029 1,388,506 70 4,940M 7%, 6/20/2023-10/20/2029 5,265,966 264 1,826M 7.5%, 12/20/2022-10/20/2023 1,970,258 99 - ---------------------------------------------------------------------------------------------------------------------- 8,624,730 433 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Mortgage-Backed Certificates (cost $191,236,552) 195,096,892 9,785 - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM U.S. GOVERNMENT OBLIGATIONS--1.4% 2,800M U.S. Treasury Bills, .935%, 4/22/04 (cost $2,798,472) 2,798,472 140 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $194,035,024) 99.3% 197,895,364 9,925 Other Assets, Less Liabilities .7 1,487,868 75 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $199,383,232 $10,000 ====================================================================================================================== See notes to financial statements
Portfolio of Investments FIRST INVESTORS INVESTMENT GRADE FUND March 31, 2004 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- CORPORATE BONDS--82.7% Aerospace/Defense--2.2% $100M Boeing Capital Corp., 4.75%, 2008 $105,592 $5 Honeywell International, Inc.: 1,500M 7.5%, 2010 1,805,638 94 975M 6.125%, 2011 1,097,528 57 Precision Castparts Corp.: 700M 8.75%, 2005 731,694 38 400M 5.60%, 2013 + 415,266 22 - ---------------------------------------------------------------------------------------------------------------------- 4,155,718 216 - ---------------------------------------------------------------------------------------------------------------------- Automotive--3.3% 2,000M DaimlerChrysler NA Holdings Corp., 8%, 2010 2,357,900 123 886M Ford Motor Co., 8.9%, 2032 1,018,857 53 500M Lear Corp., 8.11%, 2009 593,750 31 730M Navistar International Corp., 8%, 2008 753,725 39 717M TRW, Inc., 7.125%, 2009 828,271 43 700M Visteon Corp., 8.25%, 2010 772,270 40 - ---------------------------------------------------------------------------------------------------------------------- 6,324,773 329 - ---------------------------------------------------------------------------------------------------------------------- Chemicals--.4% 700M Lubrizol Corp., 7.25%, 2025 808,248 42 - ---------------------------------------------------------------------------------------------------------------------- Energy--1.9% 500M Mobil Corp., 8.625%, 2021 703,182 37 833M Repsol International Finance BV, 7.45%, 2005 890,504 46 975M Sunoco, Inc., 9.375%, 2016 1,108,870 58 800M Texaco Capital, Inc., 8.25%, 2006 926,186 48 - ---------------------------------------------------------------------------------------------------------------------- 3,628,742 189 - ---------------------------------------------------------------------------------------------------------------------- Financial--5.3% 875M American General Finance Corp., 8.125%, 2009 1,065,418 55 CIT Group, Inc.: 300M 6.875%, 2009 346,582 18 1,900M 7.75%, 2012 2,298,384 120 400M Ford Motor Credit Co., 9.03%, 2009 414,611 22 General Electric Capital Corp.: 700M 7.875%, 2006 803,532 42 700M 8.5%, 2008 851,502 44 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS INVESTMENT GRADE FUND March 31, 2004 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Financial (continued) $1,550M General Motors Acceptance Corp., 7.75%, 2010 $1,759,250 $92 Household Finance Corp.: 1,825M 6.5%, 2008 2,067,875 108 452M 7.75%, 2022 490,526 25 - ---------------------------------------------------------------------------------------------------------------------- 10,097,680 526 - ---------------------------------------------------------------------------------------------------------------------- Financial Services--12.8% Bank of America Corp.: 1,067M 7.8%, 2010 1,297,077 67 1,225M 7.4%, 2011 1,472,416 77 Bank One Corp.: 1,165M 7.6%, 2007 1,330,461 69 700M 7.875%, 2010 857,179 45 775M BB&T Corp., 5.2%, 2015 803,270 42 700M Chase Manhattan Corp., 7.875%, 2010 856,738 45 1,750M Comerica, 7.125%, 2013 1,999,564 104 945M Fifth Third Bank, 3.375%, 2008 959,119 50 First Union National Bank: 1,200M 7.8%, 2010 1,481,027 77 250M 6.18%, 2036 283,601 15 1,000M Fleet Capital Trust II, 7.92%, 2026 1,147,910 60 1,500M Florida Windstorm Underwriting Assoc., 7.125%, 2019 + 1,837,104 96 1,200M Greenpoint Bank, 9.25%, 2010 1,523,782 79 775M Huntington National Bank, 8%, 2010 956,500 50 795M Manufacturers & Traders Trust Co., 8%, 2010 978,928 51 288M NBD Bancorp, Inc., 7.125%, 2007 326,727 17 1,125M Old National Bank, 6.75%, 2011 1,286,053 67 1,150M Republic NY Corp., 7.75%, 2009 1,372,539 71 1,600M Royal Bank of Scotland Group PLC, 5%, 2014 1,653,419 86 1,825M Washington Mutual, Inc., 8.25%, 2010 2,233,851 116 - ---------------------------------------------------------------------------------------------------------------------- 24,657,265 1,284 - ---------------------------------------------------------------------------------------------------------------------- Food/Beverage/Tobacco--4.1% Coca-Cola Enterprises, Inc.: 1,050M 7.125%, 2009 1,242,511 65 800M 7.125%, 2017 980,102 51 2,375M ConAgra Foods, Inc., 6.75%, 2011 2,730,473 142 700M Hershey Foods Corp., 6.7%, 2005 752,678 39 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Food/Beverage/Tobacco (continued) $1,000M Pepsi Bottling Group, Inc., 7%, 2029 $1,187,508 $62 900M Philip Morris Companies, Inc., 6.95%, 2006 971,873 50 - ---------------------------------------------------------------------------------------------------------------------- 7,865,145 409 - ---------------------------------------------------------------------------------------------------------------------- Food/Drug--3.3% 1,550M Delhaize America, Inc., 8.125%, 2011 1,790,250 93 Kroger Co.: 700M 6.8%, 2018 799,612 42 1,600M 7%, 2018 1,852,587 96 Safeway, Inc.: 510M 7%, 2007 577,190 30 450M 9.3%, 2007 528,025 28 700M 6.5%, 2011 782,544 41 - ---------------------------------------------------------------------------------------------------------------------- 6,330,208 330 - ---------------------------------------------------------------------------------------------------------------------- Forest Products/Containers--3.1% International Paper Co.: 700M 8.125%, 2005 755,365 39 1,190M 6.75%, 2011 1,355,249 71 1,725M Sappi Papier Holding AG, 6.75%, 2012 + 1,949,402 101 Weyerhaeuser Co.: 1,100M 7.25%, 2013 1,284,771 67 545M 7.5%, 2013 638,752 33 - ---------------------------------------------------------------------------------------------------------------------- 5,983,539 311 - ---------------------------------------------------------------------------------------------------------------------- Gaming/Leisure--.9% 750M MGM Mirage, Inc., 8.5%, 2010 879,375 46 750M Park Place Entertainment Corp., 9.375%, 2007 847,500 44 - ---------------------------------------------------------------------------------------------------------------------- 1,726,875 90 - ---------------------------------------------------------------------------------------------------------------------- Health Care--3.1% 1,880M Becton, Dickinson & Co., 7.15%, 2009 2,233,316 116 900M Columbia/HCA Healthcare, Inc., 7.5%, 2023 952,040 50 1,130M Tenet Healthcare Corp., 6.375%, 2011 983,100 51 1,500M Wyeth, 6.95%, 2011 1,731,292 90 - ---------------------------------------------------------------------------------------------------------------------- 5,899,748 307 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS INVESTMENT GRADE FUND March 31, 2004 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Information Technology--.2% $450M International Business Machines Corp., 4.875%, 2006 $481,077 $25 - ---------------------------------------------------------------------------------------------------------------------- Manufacturing--2.6% 875M Ingersoll-Rand Co., 9%, 2021 1,203,100 63 1,600M Newell Rubbermaid, Inc., 6.75%, 2012 1,793,979 93 United Technologies Corp.: 900M 6.5%, 2009 1,032,759 54 800M 7.125%, 2010 955,842 50 - ---------------------------------------------------------------------------------------------------------------------- 4,985,680 260 - ---------------------------------------------------------------------------------------------------------------------- Media-Broadcasting--2.8% Comcast Cable Communications, Inc.: 1,300M 8.375%, 2007 1,510,886 79 850M 7.125%, 2013 984,541 51 500M Cox Communications, Inc., 5.5%, 2015 513,502 27 1,480M Cox Enterprises, Inc., 8%, 2007 + 1,694,242 88 700M PanAmSat Corp., 6.375%, 2008 730,625 38 - ---------------------------------------------------------------------------------------------------------------------- 5,433,796 283 - ---------------------------------------------------------------------------------------------------------------------- Media-Diversified--4.2% 750M AOL Time Warner, Inc., 6.875%, 2012 859,637 45 500M Houghton Mifflin Co., 7.2%, 2011 540,000 28 700M New York Times Co., 7.625%, 2005 743,269 39 1,600M News America, Inc., 7.3%, 2028 1,839,427 96 1,000M Time Warner, Inc., 6.875%, 2018 1,125,813 58 Viacom, Inc.: 775M 7.75%, 2005 828,902 43 500M 8.625%, 2012 639,198 33 360M 8.875%, 2014 473,379 25 900M Walt Disney Co., 7.3%, 2005 942,815 49 - ---------------------------------------------------------------------------------------------------------------------- 7,992,440 416 - ---------------------------------------------------------------------------------------------------------------------- Metals/Mining--1.5% 1,446M Hanson PLC, 7.875%, 2010 1,755,143 92 950M Thiokol Corp., 6.625%, 2008 1,062,858 55 - ---------------------------------------------------------------------------------------------------------------------- 2,818,001 147 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Real Estate--7.9% $1,654M Archstone-Smith Trust, 7.9%, 2016 (REIT) $2,015,162 $105 AvalonBay Communities, Inc.: 1,900M 7.5%, 2010 (REIT) 228,489 12 200M 6.625%, 2011 (REIT) 2,267,973 118 1,800M Boston Properties, Inc., 5%, 2015 (REIT) 1,800,122 94 1,350M Duke-Weeks Realty Corp., 7.75%, 2009 (REIT) 1,623,511 84 EOP Operating LP: 1,705M 8.1%, 2010 (REIT) 2,060,591 107 150M 7.25%, 2018 (REIT) 176,977 9 1,900M Mack-Cali Realty LP, 7.75%, 2011 (REIT) 2,267,095 118 Simon Property Group, Inc.: 1,875M 7.875%, 2016 (REIT) + 2,297,089 120 425M 7.375%, 2018 (REIT) 510,298 27 - ---------------------------------------------------------------------------------------------------------------------- 15,247,307 794 - ---------------------------------------------------------------------------------------------------------------------- Retail-General Merchandise--4.0% 1,750M Federated Department Stores, Inc., 7.45%, 2017 2,130,630 111 900M Lowe's Companies, Inc., 8.25%, 2010 1,126,584 59 800M RadioShack Corp., 7.375%, 2011 956,854 50 Target Corp.: 235M 5.375%, 2009 257,257 13 1,620M 7.5%, 2010 1,960,266 102 Wal-Mart Stores, Inc.: 700M 8%, 2006 796,827 41 400M 8.5%, 2024 426,277 22 - ---------------------------------------------------------------------------------------------------------------------- 7,654,695 398 - ---------------------------------------------------------------------------------------------------------------------- Services--3.3% Allied Waste NA, Inc.: 750M 8.875%, 2008 845,625 44 500M 5.75%, 2011 + 486,250 25 ERAC USA Finance Enterprise Co.: 750M 9.125%, 2004 786,950 41 1,775M 7.35%, 2008 + 2,057,181 107 520M 8%, 2011 + 633,450 33 1,400M Waste Management, Inc., 6.875%, 2009 1,601,306 84 - ---------------------------------------------------------------------------------------------------------------------- 6,410,762 334 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS INVESTMENT GRADE FUND March 31, 2004 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Telecommunications--3.3% $500M Chesapeake & Potomac Telephone Co. of Maryland, 8.3%, 2031 $654,986 $34 1,200M Deutsche Telekom AG, 8.5%, 2010 1,475,446 77 GTE Corp.: 909M 6.84%, 2018 1,028,993 54 500M 7.9%, 2027 563,925 29 800M New York Telephone Co., 6.125%, 2010 881,969 46 725M Sprint Capital Corp., 6.375%, 2009 808,914 42 750M Vodafone AirTouch PLC, 7.75%, 2010 904,868 47 - ---------------------------------------------------------------------------------------------------------------------- 6,319,101 329 - ---------------------------------------------------------------------------------------------------------------------- Transportation--5.6% 1,217M Attransco, Inc., 6.12%, 2008 1,325,852 69 Burlington Northern Santa Fe Corp.: 725M 7.875%, 2007 839,064 44 700M 7.125%, 2010 825,233 43 700M 6.75%, 2011 818,981 42 Canadian National Railway Co.: 810M 6.45%, 2006 884,920 46 850M 7.375%, 2031 1,056,712 55 650M FedEx Corp., 3.5%, 2009 + 649,829 34 1,600M Norfolk Southern Corp., 7.7%, 2017 2,003,741 104 1,700M Union Pacific Corp., 7.375%, 2009 2,012,499 105 300M Union Pacific Railroad, 7.28%, 2011 365,576 19 - ---------------------------------------------------------------------------------------------------------------------- 10,782,407 561 - ---------------------------------------------------------------------------------------------------------------------- Utilities--6.9% 700M Columbia Energy Group, 6.8%, 2005 753,850 39 Consumers Energy Co.: 735M 6.375%, 2008 812,684 42 1,500M 6.875%, 2018 1,786,187 93 1,000M DPL, Inc., 6.875%, 2011 1,020,000 53 1,650M Duke Capital Corp., 8%, 2019 1,966,699 102 795M El Paso Energy Corp., 7.375%, 2012 687,675 36 500M Entergy Gulf States, Inc., 6.2%, 2033 498,071 26 547M Niagara Mohawk Holdings, Inc., 7.625%, 2005 589,024 31 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Utilities (continued) $1,200M NiSource Finance Corp., 7.875%, 2010 $1,453,234 $76 1,350M PP&L Capital Funding, Inc., 8.375%, 2007 1,557,500 81 775M PSI Energy, Inc., 8.85%, 2022 1,047,406 54 900M Wisconsin Power & Light Co., 7%, 2007 1,014,072 53 - ---------------------------------------------------------------------------------------------------------------------- 13,186,402 686 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Corporate Bonds (cost $145,702,621) 158,789,609 8,266 - ---------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS--4.5% U.S. Treasury Notes: 1,000M 7.875%, 2004 1,042,344 54 2,000M 6.625%, 2007 2,276,330 119 1,300M 6%, 2009 1,500,740 78 3,300M 6.5%, 2010 3,913,338 204 - ---------------------------------------------------------------------------------------------------------------------- Total Value of U.S. Government Obligations (cost $8,367,337) 8,732,752 455 - ---------------------------------------------------------------------------------------------------------------------- PASS THROUGH CERTIFICATES--4.4% Real Estate--.8% 1,353M FDA Queens LP, 6.99%, 2017 1,547,387 81 - ---------------------------------------------------------------------------------------------------------------------- Transportation--3.6% 751M American Airlines, Inc., 7.377%, 2019 565,402 29 446M Canadian National Railway Co., 7.195%, 2016 530,769 28 Continental Airlines, Inc.: 523M 6.748%, 2017 433,762 22 1,524M 8.388%, 2020 1,324,617 69 1,241M FedEx Corp., 7.5%, 2018 1,433,431 75 727M Northwest Airlines, Inc., 8.072%, 2019 811,601 42 1,003M NWA Trust, 10.23%, 2012 928,744 48 750M Southwest Airlines Co., 6.126%, 2006 818,205 43 - ---------------------------------------------------------------------------------------------------------------------- 6,846,531 356 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Pass Through Certificates (cost $8,726,074) 8,393,918 437 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS INVESTMENT GRADE FUND March 31, 2004 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested Principal For Each Amount $10,000 of or Shares Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS--4.0% Fannie Mae: $1,600M 6.125%, 2012 $1,836,210 $96 960M 5%, 2016 958,733 50 1,425M Federal Home Loan Bank, 4.3%, 2008 1,432,027 74 900M Freddie Mac, 5%, 2018 899,663 47 2,300M Tennessee Valley Authority, 5.375%, 2008 2,534,204 132 - ---------------------------------------------------------------------------------------------------------------------- Total Value of U.S. Government Agency Obligations (cost $7,516,525) 7,660,837 399 - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--.9% Housing Virginia State Housing Development Authority: 800M Series "A", 6.51%, 2019 834,032 44 710M Series "M", 7%, 2022 787,156 41 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $1,475,998) 1,621,188 85 - ---------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--.1% Information Technology Allstream, Inc.: 83 Class "A" 4,616 -- 4,476 Class "B" 251,556 13 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $123,500) 256,172 13 - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE NOTES--1.6% $1,600M ChevronTexaco Corp., .97%, 4/5/04 1,599,828 83 1,500M General Electric Co., 1%, 4/16/04 1,499,375 78 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Short-Term Corporate Notes (cost $3,099,203) 3,099,203 161 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $175,011,258) 98.2% 188,553,679 9,816 Other Assets, Less Liabilities 1.8 3,542,384 184 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $192,096,063 $10,000 ====================================================================================================================== + Security exempt from registration under Rule 144A of the Securities Act of 1933. See Note 4. Summary of Abbreviations: REIT Real Estate Investment Trust See notes to financial statements
Portfolio of Investments FIRST INVESTORS FUND FOR INCOME, INC. March 31, 2004 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- CORPORATE BONDS--88.8% Aerospace/Defense--3.1% $3,450M Alliant Techsystems, Inc., 8.5%, 2011 $3,829,500 $66 3,000M DeCrane Aircraft Holdings, Inc., 12%, 2008 1,998,750 34 900M DRS Technologies, Inc., 6.875%, 2013 940,500 16 2,700M GenCorp, Inc., 9.5%, 2013 2,875,500 49 L-3 Communications Corp.: 3,000M 8%, 2008 3,135,000 54 1,600M 7.625%, 2012 1,768,000 30 3,600M 6.125%, 2014 + 3,717,000 64 - ---------------------------------------------------------------------------------------------------------------------- 18,264,250 313 - ---------------------------------------------------------------------------------------------------------------------- Automotive--7.8% 6,725M Accuride Corp., 9.25%, 2008 6,977,188 119 Asbury Automotive Group, Inc.: 3,400M 9%, 2012 3,655,000 63 2,700M 8%, 2014 + 2,713,500 46 4,208M Cambridge Industries Liquidating Trust ++ ** 168,337 3 7,800M Collins & Aikman Products Co., 11.5%, 2006 7,702,500 132 5,450M Dana Corp., 9%, 2011 6,580,875 113 5,500M Delco Remy International, Inc., 11%, 2009 5,912,500 101 2,500M Special Devices, Inc., 11.375%, 2008 2,415,625 41 4,693M TRW Automotive, Inc., 9.375%, 2013 5,420,415 93 3,600M United Components, Inc., 9.375%, 2013 3,906,000 67 - ---------------------------------------------------------------------------------------------------------------------- 45,451,940 778 - ---------------------------------------------------------------------------------------------------------------------- Chemicals--9.6% 3,500M Equistar Chemicals LP, 10.625%, 2011 3,788,750 65 450M Ethyl Corp., 8.875%, 2010 488,250 8 3,500M FMC Corp., 10.25%, 2009 4,130,000 71 2,600M Huntsman, LLC, 11.625%, 2010 2,743,000 47 7,000M IMC Global, Inc., 10.875%, 2013 8,802,500 151 8,000M Lyondell Chemical Co., 10.875%, 2009 8,020,000 137 Millennium America, Inc.: 900M 7%, 2006 920,250 16 1,975M 9.25%, 2008 2,118,188 36 2,400M 9.25%, 2008 + 2,574,000 44 250M Nalco Co., 8.875%, 2013 + 261,875 5 3,250M Noveon, Inc., 11%, 2011 3,737,500 64 900M Omnova Solutions, Inc., 11.25%, 2010 1,003,500 17 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS FUND FOR INCOME, INC. March 31, 2004 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Chemicals (continued) $6,150M Resolution Performance Products, LLC, 13.5%, 2010 $5,166,000 $89 8,500M Terra Capital, Inc., 11.5%, 2010 9,307,500 159 4,500M Texas Petrochemicals Corp., 11.125%, 2006 ++ 1,777,500 30 900M Westlake Chemical Corp., 8.75%, 2011 999,000 17 - ---------------------------------------------------------------------------------------------------------------------- 55,837,813 956 - ---------------------------------------------------------------------------------------------------------------------- Consumer Non-Durables--3.2% 3,420M AKI, Inc., 10.5%, 2008 3,573,900 61 1,707M Chattem, Inc., 8.875%, 2008 1,766,028 30 4,000M GFSI, Inc., 9.625%, 2007 3,900,000 67 7,200M Playtex Products, Inc., 9.375%, 2011 6,948,000 119 2,500M Remington Arms Co., 10.5%, 2011 2,543,750 44 - ---------------------------------------------------------------------------------------------------------------------- 18,731,678 321 - ---------------------------------------------------------------------------------------------------------------------- Energy--9.5% 7,000M Bluewater Finance, Ltd., 10.25%, 2012 7,315,000 125 4,500M Chesapeake Energy Corp., 9%, 2012 5,225,625 90 5,050M Compagnie Generale de Geophysique, 10.625%, 2007 5,479,250 94 4,075M Dresser, Inc., 9.375%, 2011 4,462,125 76 13,750M El Paso Production Holding Co., 7.75%, 2013 12,821,875 220 1,800M Energy Partners, Ltd., 8.75%, 2010 1,935,000 33 Giant Industries, Inc.: 1,730M 9%, 2007 1,790,550 31 8,500M 11%, 2012 9,583,750 164 1,000M Hanover Compressor Co., Zero Coupon (effective yield 11.37%), 2007 ## 775,000 13 Tesoro Petroleum Corp.: 3,900M 9%, 2008 4,090,125 70 1,750M 9.625%, 2008 1,938,125 33 - ---------------------------------------------------------------------------------------------------------------------- 55,416,425 949 - ---------------------------------------------------------------------------------------------------------------------- Financial Services--2.5% 14,500M Dow Jones Trac-X NA, High Yield, Series 2, Trust 3, 8%, 2009 + 14,626,875 250 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Food/Beverage/Tobacco--2.6% Land O'Lakes, Inc.: $1,800M 9%, 2010 + $1,827,000 $31 7,300M 8.75%, 2011 6,533,500 112 4,500M Merisant Co., 9.5%, 2013 + 4,455,000 76 1,550M Pilgrim's Pride Corp., 9.625%, 2011 1,677,875 29 150M PPC Escrow Corp, 9.25%, 2013 + 157,500 3 250M Reddy Ice Group, Inc., 8.875%, 2011 269,375 4 - ---------------------------------------------------------------------------------------------------------------------- 14,920,250 255 - ---------------------------------------------------------------------------------------------------------------------- Food/Drug--1.9% 3,250M Di Giorgio Corp., 10%, 2007 3,250,000 56 4,000M Ingles Markets, Inc., 8.875%, 2011 4,190,000 72 3,500M Roundy's, Inc., 8.875%, 2012 3,867,500 66 - ---------------------------------------------------------------------------------------------------------------------- 11,307,500 194 - ---------------------------------------------------------------------------------------------------------------------- Forest Products/Containers--4.1% 9,300M AEP Industries, Inc., 9.875%, 2007 9,648,750 165 1,250M Pliant Corp., 0%-11.125%, 2009 + # 1,006,250 17 4,000M Potlatch Corp., 10%, 2011 4,540,000 78 4,300M Stone Container Corp., 9.75%, 2011 4,826,750 83 3,625M Tekni-Plex, Inc., 12.75%, 2010 3,815,313 65 - ---------------------------------------------------------------------------------------------------------------------- 23,837,063 408 - ---------------------------------------------------------------------------------------------------------------------- Gaming/Leisure--2.6% 2,250M Circus & Eldorado/Silver Legacy, 10.125%, 2012 2,300,625 39 4,550M Isle of Capri Casinos, Inc., 8.75%, 2009 4,771,813 82 3,000M John Q. Hammons Hotels, LP, 8.875%, 2012 3,352,500 57 2,445M Outboard Marine Corp., 10.75%, 2008 ++ ** 3,056 -- Park Place Entertainment Corp.: 3,500M 9.375%, 2007 3,955,000 68 500M 7%, 2013 547,500 9 - ---------------------------------------------------------------------------------------------------------------------- 14,930,494 255 - ---------------------------------------------------------------------------------------------------------------------- Health Care--7.6% 4,176M Advanced Medical Optics, Inc., 9.25%, 2010 4,635,360 79 955M ALARIS Medical Systems, Inc., 7.25%, 2011 1,014,688 17 755M Fisher Scientific International, Inc., 8.125%, 2012 841,825 14 4,400M Genesis Health Ventures, Inc., 9.75%, 2005 ++ ** 5,500 -- - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS FUND FOR INCOME, INC. March 31, 2004 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Health Care (continued) $4,350M HCA, Inc., 5.25%, 2008 $4,500,962 $77 4,000M Insight Health Services Corp., 9.875%, 2011 4,030,000 69 500M Medex, Inc., 8.875%, 2013 + 546,250 9 4,500M MedQuest, Inc., 11.875%, 2012 5,152,500 88 2,800M Owens & Minor, Inc., 8.5%, 2011 3,143,000 54 3,600M PerkinElmer, Inc., 8.875%, 2013 4,176,000 72 1,725M Quintiles Transnational Corp., 10%, 2013 + 1,802,625 31 3,500M Rotech Healthcare, Inc., 9.5%, 2012 3,780,000 65 12,400M Tenet Healthcare Corp., 6.375%, 2011 10,788,000 185 - ---------------------------------------------------------------------------------------------------------------------- 44,416,710 760 - ---------------------------------------------------------------------------------------------------------------------- Housing--2.3% 3,150M Integrated Electrical Services, Inc., 9.375%, 2009 3,315,375 57 1,500M Nortek, Inc., 9.875%, 2011 1,695,000 29 5,000M Ply Gem Industries, Inc., 9%, 2012 + 5,050,000 86 2,700M William Lyon Homes, Inc., 10.75%, 2013 3,206,250 55 - ---------------------------------------------------------------------------------------------------------------------- 13,266,625 227 - ---------------------------------------------------------------------------------------------------------------------- Information Technology--.9% 3,100M ChipPac International, Ltd., 12.75%, 2009 3,394,500 58 3,000M Exodus Communications, Inc., 10.75%, 2009 ++ ** 3,750 -- Iron Mountain, Inc.: 1,000M 8.625%, 2013 1,095,000 19 1,000M 6.625%, 2016 975,000 17 - ---------------------------------------------------------------------------------------------------------------------- 5,468,250 94 - ---------------------------------------------------------------------------------------------------------------------- Investment/Finance Companies--.9% 2,600M Finova Group, Inc., 7.5%, 2009 1,618,500 28 3,400M General Motors Acceptance Corp., 4.5%, 2006 3,515,297 60 - ---------------------------------------------------------------------------------------------------------------------- 5,133,797 88 - ---------------------------------------------------------------------------------------------------------------------- Manufacturing--2.8% Columbus McKinnon Corp.: 7,900M 8.5%, 2008 7,465,500 128 500M 10%, 2010 542,500 9 1,800M Eagle-Picher Industries, Inc., 9.75%, 2013 1,980,000 34 6,000M Wolverine Tube, Inc., 10.5%, 2009 6,480,000 111 - ---------------------------------------------------------------------------------------------------------------------- 16,468,000 282 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Media-Broadcasting--1.5% $650M Block Communications, Inc., 9.25%, 2009 $695,500 $12 450M Nexstar Finance, Inc., 7%, 2014 + 447,750 7 3,000M Sinclair Broadcasting Group, Inc., 8.75%, 2011 3,337,500 57 Young Broadcasting Corp.: 2,920M 10%, 2011 3,139,000 54 900M 8.75%, 2014 + 931,500 16 - ---------------------------------------------------------------------------------------------------------------------- 8,551,250 146 - ---------------------------------------------------------------------------------------------------------------------- Media-Cable TV--10.6% 2,275M Adelphia Communications Corp., 10.25%, 2011 ++ 2,286,375 39 3,700M Atlantic Broadband Finance, LLC, 9.375%, 2014 + 3,653,750 63 18,000M Cablevision Systems Corp., 8%, 2012 + 18,045,000 309 2,000M Century Communications Corp., 9.5%, 2005 ++ 2,100,000 36 Charter Communications Holdings, LLC: 8,500M 10%, 2009 7,310,000 125 1,000M 10.75%, 2009 880,000 15 2,000M 10.25%, 2010 1,705,000 29 5,800M 0%-9.92%, 2011 # 4,828,500 83 5,476M Loral Cyberstar, Inc., 10%, 2006 ++ 4,052,240 69 Mediacom LLC/Mediacom Capital Corp.: 6,500M 8.5%, 2008 6,516,250 112 4,000M 7.875%, 2011 3,880,000 66 2,000M 9.5%, 2013 1,990,000 34 4,300M Quebecor Media, Inc., 11.125%, 2011 4,955,750 85 - ---------------------------------------------------------------------------------------------------------------------- 62,202,865 1,065 - ---------------------------------------------------------------------------------------------------------------------- Media-Diversified--2.8% 4,000M Garden State Newspapers, Inc., 8.625%, 2011 4,230,000 72 3,200M Mail-Well I Corp., 7.875%, 2013 + 3,040,000 52 1,500M R.H. Donnelley Financial Corp., 10.875%, 2012 + 1,796,250 31 1,800M Six Flags, Inc., 9.625%, 2014 + 1,921,500 33 3,400M Universal City Development Partners, Ltd., 11.75%, 2010 3,973,750 68 1,000M Vivendi Universal SA, 9.25%, 2010 1,200,000 21 - ---------------------------------------------------------------------------------------------------------------------- 16,161,500 277 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS FUND FOR INCOME, INC. March 31, 2004 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Metals/Mining--1.0% $3,728M Commonwealth Aluminum Corp., 10.75%, 2006 $3,755,960 $64 1,840M Euramax International, Inc., 8.5%, 2011 + 1,959,600 34 3,000M Murrin Murrin Holdings Property, Ltd., 9.375%, 2007 ++ ** 3,750 -- - ---------------------------------------------------------------------------------------------------------------------- 5,719,310 98 - ---------------------------------------------------------------------------------------------------------------------- Retail-General Merchandise--1.1% 1,848M Big 5 Corp., 10.875%, 2007 1,924,692 33 4,000M Michaels Stores, Inc., 9.25%, 2009 4,425,000 76 250M Phillips Van-Heusen Corp., 8.125%, 2013 270,625 4 - ---------------------------------------------------------------------------------------------------------------------- 6,620,317 113 - ---------------------------------------------------------------------------------------------------------------------- Services--6.4% Allied Waste NA, Inc.: 10,000M 10%, 2009 10,775,000 185 3,450M 5.75%, 2011 + 3,355,125 57 2,700M 9.25%, 2012 3,084,750 53 1,800M 7.875%, 2013 1,975,500 34 5,350M Hydrochem Industrial Services, Inc., 10.375%, 2007 5,376,750 92 1,000M IESI Corp., 10.25%, 2012 1,100,000 19 4,535M Kindercare Learning Centers, Inc., 9.5%, 2009 4,629,464 79 United Rentals, Inc.: 2,000M 9%, 2009 2,107,000 36 1,800M 6.5%, 2012 + 1,800,000 31 3,600M 7%, 2014 + 3,402,000 58 - ---------------------------------------------------------------------------------------------------------------------- 37,605,589 644 - ---------------------------------------------------------------------------------------------------------------------- Telecommunications--.9% 4,000M Adelphia Business Solutions, Inc., 13%, 2003 ++ 910,000 16 6,050M E. Spire Communications, Inc., 13%, 2005 ++ 605 -- 2,400M ICG Services, Inc., 10%, 2008 ++ ** 3,000 -- RCN Corp.: 9,000M 11.125%, 2007 ++ 4,185,000 72 300M 11%, 2008 ++ 139,500 2 5,500M Viatel, Inc., 12.5%, 2008 ++ ** 1,319 -- 4,000M Worldwide Fiber, Inc., 12%, 2009 ++ 400 -- - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested Principal For Each Amount $10,000 of or Shares Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Telecommunications (continued) XO Communications, Inc.: $7,000M 12.5%, 2006 ++ ** $8,750 $-- 2,750M 9.45%, 2008 ++ ** 3,438 -- - ---------------------------------------------------------------------------------------------------------------------- 5,252,012 90 - ---------------------------------------------------------------------------------------------------------------------- Transportation--.9% 2,700M General Maritime Corp., 10%, 2013 3,037,500 52 500M Great Lakes Dredge & Dock Corp., 7.75%, 2013 + 507,500 9 1,750M Overseas Shipholding Group, Inc., 8.25%, 2013 1,933,750 33 - ---------------------------------------------------------------------------------------------------------------------- 5,478,750 94 - ---------------------------------------------------------------------------------------------------------------------- Utilities--.0% 5,500M AES Drax Energy, Ltd., 11.5%, 2010 ++ 55,000 1 - ---------------------------------------------------------------------------------------------------------------------- Wireless Communications--2.2% 5,000M Crown Castle International Corp., 9.375%, 2011 5,450,000 93 Triton Communications, LLC: 3,500M 8.75%, 2011 3,325,000 57 4,350M 9.375%, 2011 4,219,500 72 - ---------------------------------------------------------------------------------------------------------------------- 12,994,500 222 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Corporate Bonds (cost $539,455,721) 518,718,763 8,880 - ---------------------------------------------------------------------------------------------------------------------- PREFERRED STOCKS--3.3% Consumer Non-Durables--.0% 7,714 * Worldtex, Inc., 12%, 2004** 146,566 2 - ---------------------------------------------------------------------------------------------------------------------- Health Care--.0% 115 * Leiner Health Products, Inc., 9.625%, 2007** 1 -- - ---------------------------------------------------------------------------------------------------------------------- Media-Cable TV--3.3% 180,791 CSC Holdings, Inc., 11.125%, 2008, Series "M" 18,919,778 325 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Preferred Stocks (cost $18,900,896) 19,066,345 327 - ---------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS--1.9% U.S. Treasury Notes: $5,500M 7.25%, 2004 5,629,338 96 5,000M 7%, 2006 5,594,535 96 - ---------------------------------------------------------------------------------------------------------------------- Total Value of U.S. Government Obligations (cost $10,630,317) 11,223,873 192 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS FUND FOR INCOME, INC. March 31, 2004 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Shares or $10,000 of Warrants Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--.7% Automotive--.1% 37,387 * Safelite Glass Corp. - Class "B" + ** $299,096 $5 2,523 Safelite Realty Corp.** 25 -- - ---------------------------------------------------------------------------------------------------------------------- 299,121 5 - ---------------------------------------------------------------------------------------------------------------------- Consumer Non-Durables--.0% 25,200 * Worldtex, Inc.** 252 -- - ---------------------------------------------------------------------------------------------------------------------- Media-Cable TV--.2% 41,221 * Echostar Communications Corp. - Class "A" 1,349,988 23 - ---------------------------------------------------------------------------------------------------------------------- Telecommunications--.4% 5,805 * ICG Communications, Inc. 34,830 1 39,967 * NTL, Inc. 2,376,038 40 18,224 * World Access, Inc. 35 -- - ---------------------------------------------------------------------------------------------------------------------- 2,410,903 41 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $9,544,403) 4,060,264 69 - ---------------------------------------------------------------------------------------------------------------------- WARRANTS--.0% Aerospace/Defense--.0% 3,000 * DeCrane Aircraft Holdings, Inc. (expiring 9/30/08) + 30 -- - ---------------------------------------------------------------------------------------------------------------------- Automotive--.0% Safelite Glass Corp.: 91,625 * Class "A" (expiring 9/29/06) + ** 916 -- 61,084 * 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) 1,080 -- - ---------------------------------------------------------------------------------------------------------------------- 1,310 -- - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested Warrants or For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- 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)** 187,782 3 - ---------------------------------------------------------------------------------------------------------------------- 190,407 3 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Warrants (cost $5,065,968) 193,274 3 - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE NOTES--3.7% $12,500M ChevronTexaco Corp., .97%, 4/5/04 12,498,652 214 5,000M Du Pont (E.I.) de Nemours & Co., .98%, 4/7/04 4,999,183 86 General Electric Capital Corp.: 1,300M 1%, 4/16/04 1,299,458 22 1,200M 1.01%, 4/16/04 1,199,495 20 1,500M General Electric Co., 1%, 4/16/04 1,499,375 26 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Short-Term Corporate Notes (cost $21,496,163) 21,496,163 368 - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--2.6% 10,000M Fannie Mae, .96%, 4/15/04 9,996,265 171 5,000M Federal Home Loan Bank, .98%, 4/16/04 4,997,958 86 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Short-Term U.S. Government Agency Obligations (cost $14,994,223) 14,994,223 257 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $620,087,691) 101.0% 589,752,905 10,096 Excess of Liabilities Over Other Assets (1.0) (5,624,029) (96) - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $584,128,876 $10,000 ====================================================================================================================== + Security exempt from registration under Rule 144A of the Securities Act of 1933. See Note 4. ++ In default as to principal and/or interest payment * Non-income producing ** Security valued at fair value (see Note 1A) # Denotes a stepbond, a zero coupon bond that converts to a fixed interest rate at a designated future date. ## Zero coupon bond reflects effective yield on the date of purchase. See notes to financial statements
Statement of Assets and Liabilities FIRST INVESTORS March 31, 2004 - ----------------------------------------------------------------------------------------------------------------- CASH INVESTMENT MANAGEMENT GOVERNMENT GRADE INCOME - ----------------------------------------------------------------------------------------------------------------- Assets Investments in securities: At identified cost $175,698,175 $194,035,024 $175,011,258 $620,087,691 ============ ============ ============ ============ At value (Note 1A) $175,698,175 $197,895,364 $188,553,679 $589,752,905 Cash 3,885,163 273,675 179,372 184,256 Receivables: Interest and dividends 233,206 956,711 3,121,973 13,075,790 Shares sold -- 378,855 616,758 774,735 Investment securities sold -- 1,491,915 -- 508,750 Other assets 46,550 58,910 26,354 315,076 ------------ ------------ ------------ ------------ Total Assets 179,863,094 201,055,430 192,498,136 604,611,512 ------------ ------------ ------------ ------------ Liabilities Payables: Investment securities purchased 5,795,733 1,035,865 -- 18,487,875 Dividends payable 10,278 79,656 99,026 819,502 Shares redeemed 211,273 372,436 146,228 633,698 Accrued advisory fees 73,954 107,912 103,178 382,895 Accrued shareholder servicing costs 58,722 41,087 36,179 112,631 Accrued directors' fees 1,500 1,500 1,170 4,000 Accrued distribution plan expenses 37 1,726 1,933 5,544 Accrued expenses 55,723 32,016 14,359 36,491 ------------ ------------ ------------ ------------ Total Liabilities 6,207,220 1,672,198 402,073 20,482,636 ------------ ------------ ------------ ------------ Net Assets $173,655,874 $199,383,232 $192,096,063 $584,128,876 ============ ============ ============ ============ Net Assets Consist of: Capital paid in $173,655,874 $201,442,772 $183,607,941 $740,386,644 Undistributed net investment deficit -- (669,936) (1,614,718) (1,215,759) Accumulated net realized loss on investments -- (5,249,944) (3,439,581) (124,707,223) Net unrealized appreciation (depreciation) in value of investments -- 3,860,340 13,542,421 (30,334,786) ------------ ------------ ------------ ------------ Total $173,655,874 $199,383,232 $192,096,063 $584,128,876 ============ ============ ============ ============ Net Assets: Class A $169,292,890 $181,358,605 $161,198,247 $543,190,560 Class B $ 4,362,984 $ 18,024,627 $ 30,897,816 $ 40,938,316 Shares outstanding (Note 6): Class A 169,292,890 16,084,805 15,526,696 171,420,379 Class B 4,362,984 1,599,693 2,977,764 12,949,039 Net asset value and redemption price per share--Class A $1.00* $11.28 $10.38 $3.17 ============ ============ ============ ============ Maximum offering price per share--Class A (Net asset value/.9425)** N/A $11.97 $11.01 $3.36 ============ ============ ============ ============ Net asset value and offering price per share--Class B (Note 6) $1.00 $11.27 $10.38 $3.16 ============ ============ ============ ============ * 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 Six Months Ended March 31, 2004 - ----------------------------------------------------------------------------------------------------------------- CASH INVESTMENT MANAGEMENT GOVERNMENT GRADE INCOME - ----------------------------------------------------------------------------------------------------------------- Investment Income Income: Interest $ 1,001,361 $ 4,914,093 $5,059,282 $ 23,548,922 Dividends (Note 1F) -- -- 10,539 1,060,332 ------------ ------------ ------------ ------------ Total income 1,001,361 4,914,093 5,069,821 24,609,254 ------------ ------------ ------------ ------------ Expenses (Notes 1 and 3): Advisory fees 446,652 1,002,437 678,789 2,082,910 Distribution plan expenses - Class A -- 227,048 188,452 797,306 Distribution plan expenses - Class B 10,181 95,444 151,245 197,982 Shareholder servicing costs 392,410 221,116 208,442 572,443 Registration fees 34,535 24,738 21,482 24,728 Professional fees 20,389 22,208 16,519 38,264 Reports to shareholders 25,233 11,189 14,996 34,566 Custodian fees 20,306 17,842 11,411 25,670 Other expenses 31,594 34,461 32,852 72,766 ------------ ------------ ------------ ------------ Total expenses 981,300 1,656,483 1,324,188 3,846,635 Less: Expenses waived or assumed (341,432) (479,476) (212,474) -- Custodian fees paid indirectly (555) (1,546) (3,255) (2,914) ------------ ------------ ------------ ------------ Net expenses 639,313 1,175,461 1,108,459 3,843,721 ------------ ------------ ------------ ------------ Net investment income 362,048 3,738,632 3,961,362 20,765,533 ------------ ------------ ------------ ------------ Realized and Unrealized Gain (Loss) on Investments (Note 2): Net realized gain (loss) on investments -- (228,739) 209,701 (3,735,237) Net unrealized appreciation of investments -- 287,367 2,169,974 24,099,339 ------------ ------------ ------------ ------------ Net gain on investments -- 58,628 2,379,675 20,364,102 ------------ ------------ ------------ ------------ Net Increase in Net Assets Resulting from Operations $ 362,048 $ 3,797,260 $ 6,341,037 $ 41,129,635 ============ ============ ============ ============ See notes to financial statements
Statement of Changes in Net Assets FIRST INVESTORS - ----------------------------------------------------------------------------------------------------------------------- CASH MANAGEMENT GOVERNMENT --------------------------- ---------------------------- 10/1/2003 to 10/1/2002 to 10/1/2003 to 10/1/2002 to 3/31/2004 9/30/2003 3/31/2004 9/30/2003 - ------------------------------------------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets From Operations Net investment income $ 362,048 $ 1,182,333 $ 3,738,632 $ 7,703,948 Net realized gain (loss) on investments -- -- (228,739) 8,408 Net unrealized appreciation (depreciation) of investments -- -- 287,367 (1,789,098) ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 362,048 1,182,333 3,797,260 5,923,258 ------------ ------------ ------------ ------------ Dividends to Shareholders Net investment income - Class A (362,048) (1,179,371) (4,096,128) (8,582,301) Net investment income - Class B -- (2,962) (359,572) (801,350) ------------ ------------ ------------ ------------ Total dividends (362,048) (1,182,333) (4,455,700) (9,383,651) ------------ ------------ ------------ ------------ Share Transactions * Class A: Proceeds from shares sold 110,846,568 234,463,530 13,363,818 46,898,620 Reinvestment of dividends 356,491 1,159,375 3,484,903 7,221,886 Cost of shares redeemed (121,351,156) (248,896,616) (19,272,865) (35,011,833) ------------ ------------ ------------ ------------ (10,148,097) (13,273,711) (2,424,144) 47,648,556 ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 1,595,199 5,714,577 1,247,103 10,300,873 Reinvestment of dividends -- 2,815 334,781 740,287 Cost of shares redeemed (3,036,942) (5,696,499) (4,394,843) (6,071,287) ------------ ------------ ------------ ------------ (1,441,743) 20,893 (2,812,959) 4,969,873 ------------ ------------ ------------ ------------ Net increase (decrease) from share transactions (11,589,840) (13,252,818) (5,237,103) 24,078,546 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets (11,589,840) (13,252,818) (5,895,543) 20,618,153 Net Assets Beginning of period 185,245,714 198,498,532 205,278,775 184,660,622 ------------ ------------ ------------ ------------ End of period+ $173,655,874 $185,245,714 $199,383,232 $205,278,775 ============ ============ ============ ============ +Includes undistributed net investment income (deficit) of $ -- $ -- $ (669,936) $ 47,132 ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 110,846,568 234,463,530 1,186,518 4,098,534 Issued for dividends reinvested 356,491 1,159,375 309,675 633,021 Redeemed (121,351,156) (248,896,616) (1,711,486) (3,071,484) ------------ ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding (10,148,097) (13,273,711) (215,293) 1,660,071 ============ ============ ============ ============ Class B: Sold 1,595,199 5,714,577 110,806 899,737 Issued for dividends reinvested -- 2,815 29,765 64,938 Redeemed (3,036,942) (5,696,499) (390,738) (533,219) ------------ ------------ ------------ ------------ Net increase (decrease) in Class B shares outstanding (1,441,743) 20,893 (250,167) 431,456 ============ ============ ============ ============ - ----------------------------------------------------------------------------------------------------------------------- INVESTMENT GRADE INCOME --------------------------- ---------------------------- 10/1/2003 to 10/1/2002 to 10/1/2003 to 10/1/2002 to 3/31/2004 9/30/2003 3/31/2004 9/30/2003 - ------------------------------------------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets From Operations Net investment income $ 3,961,362 $ 7,055,455 $ 20,765,533 $ 40,172,419 Net realized gain (loss) on investments 209,701 (1,287,197) (3,735,237) (40,988,935) Net unrealized appreciation of investments 2,169,974 7,336,387 24,099,339 110,648,829 ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 6,341,037 13,104,645 41,129,635 109,832,313 ------------ ------------ ------------ ------------ Dividends to Shareholders Net investment income - Class A (3,838,150) (6,630,609) (19,215,980) (38,529,726) Net investment income - Class B (664,533) (1,254,542) (1,283,529) (2,335,735) ------------ ------------ ------------ ------------ Total dividends (4,502,683) (7,885,151) (20,499,509) (40,865,461) ------------ ------------ ------------ ------------ Share Transactions * Class A: Proceeds from shares sold 26,077,037 54,335,625 32,357,660 74,169,454 Reinvestment of dividends 3,212,972 5,527,350 14,077,597 27,917,451 Cost of shares redeemed (13,272,919) (22,919,488) (31,670,963) (54,438,349) ------------ ------------ ------------ ------------ 16,017,090 36,943,487 14,764,294 47,648,556 ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 3,606,845 10,815,522 4,904,122 12,429,320 Reinvestment of dividends 580,171 1,092,655 890,883 1,486,015 Cost of shares redeemed (4,286,085) (4,647,711) (3,228,974) (5,406,924) ------------ ------------ ------------ ------------ (99,069) 7,260,466 2,566,031 8,508,411 ------------ ------------ ------------ ------------ Net increase from share transactions 15,918,021 44,203,953 17,330,325 56,156,967 ------------ ------------ ------------ ------------ Net increase in net assets 17,756,375 49,423,447 37,960,451 125,123,819 Net Assets Beginning of period 174,339,688 124,916,241 546,168,425 421,044,606 ------------ ------------ ------------ ------------ End of period+ $192,096,063 $174,339,688 $584,128,876 $546,168,425 ============ ============ ============ ============ +Includes undistributed net investment deficit of $ (1,614,718) $ (1,073,397) $ (1,215,759) $ (1,481,783) ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 2,545,677 5,422,036 10,246,335 25,912,750 Issued for dividends reinvested 313,568 549,544 4,460,150 9,743,823 Redeemed (1,296,403) (2,282,798) (10,038,361) (19,071,100) ------------ ------------ ------------ ------------ Net increase in Class A shares outstanding 1,562,842 3,688,782 4,668,124 16,585,473 ============ ============ ============ ============ Class B: Sold 352,457 1,080,259 1,560,818 4,363,332 Issued for dividends reinvested 56,647 108,648 282,793 517,968 Redeemed (419,343) (463,573) (1,027,302) (1,892,570) ------------ ------------ ------------ ------------ Net increase (decrease) in Class B shares outstanding (10,239) 725,334 816,309 2,988,730 ============ ============ ============ ============ See notes to financial statements
Notes to Financial Statements March 31, 2004 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 by the Fund's Board of Directors/Trustees. At March 31, 2004, the Income Fund held eighteen securities that were fair valued by its Valuation Committee with an aggregate value of $836,149 representing .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. Notes to Financial Statements (continued) March 31, 2004 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 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 six months ended March 31, 2004, the Bank of New York, custodian for the Funds, has provided total credits in the amount of $8,270 against custodian charges based on the uninvested cash balances of the Funds. 2. Security Transactions--For the six months ended March 31, 2004, 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 $ -- $ -- $ 65,217,024 $ 66,336,232 Investment Grade 18,050,506 6,998,404 4,352,095 34,177 Income 112,783,860 86,333,161 -- -- At March 31, 2004, 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 $194,035,024 $ 3,998,183 $ 137,843 $ 3,860,340 Investment Grade 176,808,259 12,847,791 1,102,371 11,745,420 Income 622,518,743 37,915,731 70,681,569 (32,765,838) 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' retirement accounts. Directors/trustees of the Funds who are not "interested persons" of the Funds as defined in the 1940 Act are remunerated by the Funds. For the six months ended March 31, 2004, total directors/trustees fees accrued by the Funds amounted to $22,322. 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. In addition, FIMCO has voluntarily waived $341,432 in advisory fees to limit the Fund's overall expense ratio to .70% on Class A shares and 1.12% on Class B shares. 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. In addition, FIMCO has voluntarily waived $479,476 in advisory fees to limit the Fund's overall expense ratio to 1.10% on Class A shares and 1.85% on Class B shares. 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. In addition, FIMCO has voluntarily waived $212,474 in advisory fees to limit the Fund's overall expense ratio to 1.10% on Class A shares and 1.85% on Class B shares. 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 six months ended March 31, 2004, total advisory fees accrued to FIMCO by the Funds were $4,210,788 of which $1,033,382 was waived as noted above. For the six months ended March 31, 2004, FIC, as underwriter, received $2,358,462 in commissions from the sale of shares of the Funds after allowing $24,904 to other dealers. Shareholder servicing costs included $891,930 in transfer agent fees accrued to ADM and $200,744 in retirement accounts 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 Notes to Financial Statements (continued) March 31, 2004 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 service fee is paid for the ongoing servicing of clients who are shareholders of that Fund. For the six months ended March 31, 2004, the fees paid under the distribution plans by Government Fund and Investment Grade Fund were limited to .25% on Class A shares and 1% on Class B shares. The distribution fees paid by Cash Management Fund were limited to .75% on Class B shares. 4. Restricted Securities--Certain restricted securities are exempt from the registration requirements under Rule 144A of the Securities Act of 1933 and may only be sold to qualified institutional investors. At March 31, 2004, Cash Management Fund held seven 144A securities with an aggregate value of $21,870,906 representing 12.6% of the Fund's net assets, Investment Grade Fund held nine 144A securities with an aggregate value of $12,019,813 representing 6.3% of the Fund's net assets and Income Fund held thirty-one 144A securities with an aggregate value of $79,901,358 representing 13.7% 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 sell 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 the net assets of each class. Of the 5,000,000,000 $.01 par value 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 $.01 par value shares originally authorized by the Government Fund and of the 1,000,000,000 $1.00 par value shares originally authorized by the 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 no par value shares of beneficial interest for both Class A and Class B shares. 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 - ------- 1999(a) $ 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 2004(b) 1.00 .002 -- .002 .002 -- .002 1.00 Class B - ------- 1999(a) 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 2004(b) 1.00 -- -- -- -- -- -- 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 2004(b) 11.31 .26 (.04) .22 .25 -- .25 11.28 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 2004(b) 11.30 .22 (.04) .18 .21 -- .21 11.27 - --------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------ 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 - ------- 1999(a) 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 .62 179 .78 .62 .97 .43 -- 2004(b) .21 169 .70+ .42+ 1.08+ .04+ -- Class B - ------- 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 .05 6 1.34 .06 1.53 (.13) -- 2004(b) -- 4 1.12+ -- 1.50+ (.38)+ -- - ------------------------------------------------------------------------------------------------------------------ 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 2004(b) 2.01 181 1.10+ 4.58+ 1.58+ 4.10+ 33 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 2004(b) 1.63 18 1.85+ 3.83+ 2.33+ 3.35+ 33 - ------------------------------------------------------------------------------------------------------------------
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 2004(b) 10.28 .24 .12 .36 .26 -- .26 10.38 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 2004(b) 10.28 .19 .14 .33 .23 -- .23 10.38 - --------------------------------------------------------------------------------------------------------------------------------- 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 2004(b) 3.05 .12 .11 .23 .11 -- .11 3.17 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 2004(b) 3.05 .11 .10 .21 .10 -- .10 3.16 - --------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------ 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 2004(b) 3.57 161 1.10+ 4.50+ 1.34+ 4.26+ 4 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 2004(b) 3.21 31 1.85+ 3.75+ 2.09+ 3.51+ 4 - ------------------------------------------------------------------------------------------------------------------ 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 2004(b) 7.75 543 1.30+ 7.32+ N/A N/A 16 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 2004(b) 7.01 41 2.00+ 6.62+ N/A N/A 16 - ------------------------------------------------------------------------------------------------------------------ * 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 period January 1, 1999 to September 30, 1999. (b) For the period October 1, 2003 to March 31, 2004. 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 March 31, 2004, the related statement of operations, the statement of changes in net assets and the financial highlights for each of the periods indicated thereon. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with 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 March 31, 2004, by correspondence with the custodian and brokers. Where brokers have not replied to our confirmation requests, we have carried out other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of First Investors Cash Management Fund, Government Fund, Investment Grade Fund and Fund For Income as of March 31, 2004, and the results of their operations, changes in their net assets and their financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America. Tait, Weller & Baker Philadelphia, Pennsylvania May 3, 2004 FIRST INVESTORS TAXABLE BOND AND MONEY MARKET FUNDS Directors/Trustees - ------------------------------------ Robert M. Grohol Glenn O. Head Kathryn S. Head Larry R. Lavoie Rex R. Reed Herbert Rubinstein James M. Srygley John T. Sullivan Robert F. Wentworth Officers - ------------------------------------ Kathryn S. Head President George V. Ganter Vice President Michael J. O'Keefe Vice President Clark D. Wagner Vice President Joseph I. Benedek Treasurer Mark S. Spencer Assistant Treasurer Carol Lerner Brown Assistant Secretary 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 Federal Deposit Insurance Corporation (FDIC) or any other U.S. government agency. It is the Funds' practice to mail only one copy of their annual and semi-annual reports to all family members who reside in the same household. Additional copies of the reports will be mailed if requested by any shareholder in writing or by calling 800-423-4026. The Funds will ensure that separate reports are sent to any shareholder who subsequently changes his or her mailing address. This report is authorized for distribution only to existing shareholders, and, if given to prospective shareholders, must be accompanied or preceded by the Funds' prospectus. The Statement of Additional Information includes additional information about the Funds' directors/trustees and is available, without charge, upon request by calling 800-423-4026. Item 2. Code of Ethics The Registrant's Board of Directors/Trustees ("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 Not applicable to Semi-Annual Report Item 4. Principal Accountant Fees and Services Not applicable to Semi-Annual Report Item 5. Audit Committee of Listed Registrants Not applicable to Semi-Annual Report Item 6. Schedule of Investments Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form. Item 7. Disclosure of Proxy Voting Policies & Procedures for Closed-End Management Investment Companies Not applicable to the Registrant Item 8. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers Not applicable to the Registrant Item 9. Submission of Matters to a Vote of Security Holders Not applicable to the Registrant for this filing Item 10. 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 11. 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: June 1, 2004 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: June 1, 2004 EX-99.CODE ETH 2 ethicxhbt.txt CODE OF ETHICS CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND FINANCIAL OFFICERS OF THE FIRST INVESTORS FUNDS Adopted August 21, 2003 I. Purpose of the Code In accordance with Section 406 of the Sarbanes-Oxley Act of 2002, and the instructions for Form N-CSR (1), the First Investors family of mutual funds (collectively, "Funds" and individually, "Fund") have adopted this code of ethics ("Code") to govern the conduct of their principal executive officers and financial officers ("Covered Officers") (2). This Code is intended to promote: Honest and ethical conduct by the Covered Officers of the Funds, including the honest and ethical handling of actual or apparent conflicts of interest between their personal and professional relationships; Full, fair, accurate, timely and understandable disclosure in reports and documents that the Funds file with, or submit to, the Securities and Exchange Commission ("SEC") and in other public communications made by the Funds; Compliance with applicable laws and governmental rules and regulations; The prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and Accountability for adherence to the Code. Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. (1) Form N-CSR implements Section 406 of the Sarbanes-Oxley Act of 2002 insofar as it applies to mutual funds. Item 2 of Form N-CSR requires a registered management investment company to disclose annually whether, as of the end of the period covered by the report, it has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these officers are employed by registrant or a third party. If the registrant has not adopted such a code of ethics, it must explain why it has not done so. The registrant must also (1) file with the SEC a copy of its code as an exhibit to its annual report on Form N-CSR; (2) post the text of its code on its Internet website and disclose, in its most recent report on Form N-CSR, its Internet address and the fact that it has posted the code on its Internet website; or (3) undertake in its most recent report on Form N-CSR to provide to any person without charge, upon request, a copy of its code and explain the manner in which such request may be made. The registrant must also disclose in its annual Form N-CSR any amendments to, or waivers (including implicit waivers) from, the provisions of the code. (2) The Covered Officers of the First Investors Funds are identified in Exhibit A to this Code. II. Conflicts of Interest A. Definition of Conflict of Interests for Purposes of this Code For purposes of this Code, a "conflict of interest" occurs when a Covered Officer's "personal interests" interfere with the interests of, or his or her service to, any of the Funds. For example, a conflict of interest would arise if a Covered Officer, directly or indirectly, were to receive improper personal benefits as a result of the Covered Officer's position with the Funds. This Code applies to all conflicts of interest between the personal interests of Covered Officers and the interests of the Funds, whether or not such conflicts of interest are prohibited by the Investment Company Act of 1940 ("1940 Act"), the Investment Advisers Act of 1940 ("Investment Advisers Act"), or the rules adopted by the SEC under these laws. For example, this Code prohibits individual transactions between Covered Officers and the Funds, notwithstanding the fact that such transactions may already be prohibited by law. This Code does not apply to conflicts of interest that arise solely because Covered Officers are employees or direct or indirect shareholders of the investment adviser of the Funds or the affiliates of the adviser. This Code recognizes that the Covered Officers will, in the normal course of their duties, be involved in establishing policies and implementing decisions that will have different effects on the adviser (and its affiliates) and the Funds. The participation of the Covered Officers in such activities is inherent in the contractual relationships between the Funds and the adviser (and its affiliates) and is consistent with the performance by the Covered Officers of their duties as officers of the Funds. These conflicts are not deemed to involve the "personal interests" of Covered Officers for purposes of this Code. B. Standards of Conduct With Respect to Conflicts of Interest The following standards govern the conduct of Covered Officers with respect to any actual or apparent conflicts of interest that arise between their personal interests and the interests of the Funds. The overarching principle of each standard is that the personal interests of a Covered Officer should not be placed improperly before the interests of the Funds. Each Covered Officer must: Not engage in any personal transaction that would violate the conflict of interest provisions of the 1940 Act, the Investment Advisers Act, or the SEC's rules thereunder; Not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Funds whereby the Covered Officer would benefit personally to the detriment of the Funds; Not cause the Funds to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Funds; and, Not use material, non-public knowledge of portfolio transactions made or contemplated for the Funds to trade personally or cause others to trade personally in contemplation of the market effect of such transactions. C. Reporting of Potential Conflicts At least annually, the Covered Officers are required to complete a Directors and Officers Questionnaire ("Questionnaire"), which contains information about potential personal conflicts of interest. These Questionnaires are required to be submitted to the Investment Compliance Manager of the Funds, who is charged with the responsibility of reviewing them for actual or potential conflicts of interest. Covered Officers are also required to report, as soon as possible, to the Investment Compliance Manager, any transactions or arrangements, not previously disclosed in their annual Questionnaires, that they reasonably believe may present a potential conflict of interest between their personal interests and the interests of the Funds. Examples of the potential conflicts that should be reported include: Serving as a Board of Director or Trustee of any public or private company; The acceptance of any gift, other than a gift of nominal value (i.e., having a value of less than $100) from any company with which the Funds has a current or prospective business dealings (other than the Funds' adviser and its affiliates); The acceptance of entertainment, other than occasional meals, tickets to sporting events, or the like that are not so frequent or extensive as to raise questions of impropriety, from any company with which the Funds has current or prospective business dealings (other than the Funds' adviser and its affiliates); Any ownership interest in, or any consulting or employment relationship with, any of the Funds' service providers (other than the Funds' adviser and its affiliates); and A direct or indirect financial interest in commissions, transaction charges or spreads paid by the Funds for effecting portfolio transactions or for selling or redeeming shares other than an interest in arising from the Covered Officer's employment, such as compensation or equity ownership. The willful or knowing failure of a Covered Officer to report a potential conflict of interest in the manner set forth above shall be considered a violation of this Code. In the event that any potential conflicts of interest are reported to or otherwise are detected by the Investment Compliance Manager, he is required to inform the General Counsel. As discussed below, the General Counsel is responsible for conducting any investigation that may be necessary, interpreting the provisions of the Code, determining whether there is an actual or apparent conflict of interest and if so, making a recommendation to the Board for appropriate action. III. Compliance with Applicable Laws and Regulations It is the responsibility of each Covered Officer to promote compliance with the laws, rules and regulations that are applicable to the Funds. Each covered Officer should: Make reasonable efforts to familiarize himself or herself with the disclosure and other requirements applicable to the Funds; Not knowingly misrepresent, or cause others to misrepresent, facts about the Funds to others, whether within or outside the Funds, including to the Funds' directors, trustees and auditors, and to governmental regulators and self-regulatory organizations; and, To the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Funds and the adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds. IV. Certifications and Reports of Violations Each Covered Officer must: Upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), certify in writing to the Investment Compliance Manager that he or she has received, read and understands the Code and any amendments thereto (Exhibit B); Annually thereafter affirm to the Investment Compliance Manager that he or she has complied with the requirements of the Code (Exhibit C); Notify the Investment Compliance Manager promptly if he or she knows of any violation of this Code; and Not retaliate against any other Covered Officer or any employee of the Funds or their affiliated persons for reporting potential violations of, or carrying out their responsibilities under, this Code. The Investment Compliance Manager shall promptly report to the General Counsel any evidence of a violation of this Code. V. Interpretations and Investigations The General Counsel is responsible for interpreting this Code as it applies to particular situations, investigating potential violations of the Code, reporting violations of the Code to the Board of Directors/Trustees of the Funds ("Board"), and making recommendations of any changes to the Code that he believes are necessary and appropriate. The following policies and procedures will apply in connection with investigations of any potential violations of this Code by a Covered Officer: The General Counsel will take such steps as he deems necessary and appropriate to investigate any potential violations that are reported to or that otherwise become known to him; If, after such investigation, the General Counsel believes that no violation has occurred, the General Counsel is not required to take any further action; If the General Counsel concludes that a violation of this Code has occurred, he will report it the Board no later than its next formal meeting; Under no circumstances shall the General Counsel waive compliance with the Code if he believes that it has been violated; If the Board concurs that a violation has occurred, it will determine what action should be taken, which may include requiring a Covered Officer to disgorge any gains obtained as a result of a conflict, imposing restrictions on the Covered Officer's future activities, or recommending a suspension or dismissal of the Covered Officer; and The Board shall also have authority to waive, by majority vote, any disciplinary action for a violation of this Code in appropriate circumstances, such as for a good faith but erroneous belief that a transaction did not involve a conflict of interest covered by this Code. On at least an annual basis, the General Counsel will provide a report to the Board concerning overall compliance with the Code, any significant interpretive issues that have arisen during the year, and his suggestions for changes, if any. VI. Other Codes of Conduct and Policies and Procedures This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act. The Covered Officers are required to continue to comply with other codes of ethics, policies and procedures that apply to their conduct. However, the other codes of ethics, policies and procedures are not part of this Code. For example, Covered Officers must continue to comply with the code of ethics that has been adopted by the Funds and their adviser, and principal underwriter pursuant to Rule 17j-1 ("Rule 17j-1 Code of Ethics") as long as they are deemed to be access persons under it. However, a violation of the Rule 17j-1 Code of Ethics would not be a violation of this Code unless the conduct at issue independently violated the terms of this Code. VII. Amendments Any amendments to this Code must be approved or ratified by a majority vote of the Board. In the event that an amendment to this Code is made between formal Board meetings, it will be presented to the Board for ratification by the next formal meeting. VIII. Confidentiality All reports and records prepared or maintained pursuant to this Code will be considered privileged and confidential and shall be maintained and protected accordingly. IX. Internal Use The Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Fund or person, as to any fact, circumstance, or legal conclusion. Exhibit A COVERED OFFICERS OF THE FIRST INVESTORS FUNDS Kathryn S. Head - - President of the First Investors Funds Joseph I. Benedek - - Treasurer of the First Investors Funds Exhibit B INITIAL CERTIFICATION I hereby certify that I have received and read a copy of the Code of Ethics For Principal Executive and Financial Officers of the First Investors Funds and understand that as a "Covered Officer" I am subject to its provisions and any amendments thereto. I also understand that as a "Covered Officer" I will certify annually to the Investment Compliance Manager that I have complied with the requirements of this Code. DATED ________________ Signature _____________________________ Name (please print) ______________________ Title __________________________________ Please return to: Investment Compliance Manager FIMCO 95 Wall Street - 23rd Floor New York, New York 10005 Exhibit C ANNUAL CERTIFICATION I hereby certify that I have received and read a copy of the Code of Ethics For Principal Executive and Financial Officers of the First Investors Funds and understand that as a "Covered Officer" I am subject to its provisions and any amendments thereto. I have complied with all of the requirements of the Code including, but not limited to reporting any actual or apparent conflicts of interest or any violations of this Code to the Investment Compliance Manager. DATED ________________ Signature ______________________________ Name (please print) ______________________ Title __________________________________ Please return to: Investment Compliance Manager FIMCO 95 Wall Street - 23rd Floor New York, New York 10005 EX-99.302 CERT 3 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: June 1, 2004 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: June 1, 2004 EX-99.906 CERT 4 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 six months ended March 31, 2004, 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: June 1, 2004 /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 six months ended March 31, 2004, 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: June 1, 2004 /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-----